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Spain In crisis 

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FINANCIAL TIMES 


Elopes Bus ness- \-:-.vsi.\Hc-er 


Yemen’s civil war 
intensifies as 
north targets Aden 

Heavy ground fighting erupted throughout Yemen 
with air attacks launched against several cities 
as the country entered its third day of an intensify- 
ing civil war. Northern military leaders in Sanaa, 
the capital, said their aim was to the capture 
the southern port city of Aden and take control 
of the entire country. The French navy evacuated 
some 400 Westerners horn Aden. 

Fears about the conflict coincided with concerns 
about tight oil supplies to push oil prices higher. 
North Sea Brent crude rose by 50 cents to $16.05 
a barrel Page 24; Background, Page 2 

Coffee leads surge in 
commodity prices 

International coffee prices staged their highest 
daily rise for nine years when benchmark: futures 
contracts increased by $81 a tonne. Copper prices 
reached their highest level in 10 months and 
cocoa and aluminium prices made gains on the 
back of the surge in other markets. Page 24; Coffee 
shows the way. Page 12 

Footsie unchanged after erratic session 

London’s equity market 


FT-SE lOO index 

Houly moyecTeots 
3,140 


3.120- 


3.100 


3X80 


3X60 



3 May-94 6 


Soured: Reuters 


survived Conservative 
local election losses 
and put up a strong 
defence in the face 
of a steep fall in US 
stocks and bonds, which 
reacted to a much 
higher than expected 
increase in US employ- 
ment. The FT-SE 100 
index began the session 
around five points 
higher and gradually 
improved to stand 
more than 15 points 
ahead before the US figures were announced, 
after w hich it dropped through the 3.100 level 
It recovered slowly to close unchanged at 34X6-0. 
London stocks, Page 15; Lex, Page 24; Markets, 
Weekend n 

Clinton sued for har assme nt; US president 
Bill Clinton was sued for damages by a former 
Arkansas state employee who alleged that three 
years ago he pressed her to engage in sexual 
relations. Page 3 

Minister retract s claim over atrocity: 

Japanese justice minis ter Shigeto Nagano withdrew 
his claim that the 1937 massacre of Nanking, 
an infamous Japanese wartime atrocity . never 
happened, but his unconvincing retraction 
prompted fresh calls for Us resignation. Pages 

IAEA not to send team to North Korea: 

The International Atomic Energy Agency, fixe 
United Nations nuclear watchdog, said it would 
not send an inspection team to North Korea for 
the refuelling of the country's mam nuclear reactor 
after receiving a rebuff from Pyongyang. 

Car sales fall: New car sales in western Europe 
fell in April by 13 per cent to 1.08m according 
figures from the European Automobile Manufacture 
ers Association and the Spanish motor industry 
federation show. Page 2; Tax rises depress UK 
sales. Page 4 

Digital to shed 20,000 more Jobs: 

Loss-making US computer manufacturer Digital 
Equipment is likely to cut a further 20,000 jobs, 
half of them in Europe, as it struggles to get back 
to profit Page 11 

Sweden launches Pharmacia sale: The 

Swedish government announced plans to sell 
a 32J> per cent stake in Pharmacia, one. of the 
world’s top 20 pharmaceuticals groups, for around 
SKrlOhn f$L3bn). Page 11 

Packer team loses casino Md: Australian 
businessman Kerry Packer and US gaming group 
Circus Circus lost their bid to build a Sydney 
casino complex. The winning proposal was submit- 
ted by Australian engineering and construction 
group Leighton Holdings. Page 11 

Yorkshire Water In US venture: Yorkshire 
Water of the UK is seeking to enter the multi-billion 
dollar North American water and waste treatment 
market through a joint venture with Ogden Corpo- 
ration of the US. Page 10 

More night flights for London: Night flying 
restrictions for London aimed at reducing noise 
levels while allowing more flights were a nn oun c ed 
by transport secretary John MacGregor. Page 5 


■ STOCK MARKET OUNCES 


FT-SE 100: 2,1063 

(Santa)! 

New Ytrt lunclfflme: 

YteH 3L91 


IS 

139085 


FT-SE fimtrack 100 ...1,49163 

91-53) : 

Lome 


FT-SE-AM-Stere 1,57245 

(Same) 

$ 

1382 

(1.4868) 

MHuH 1936237 

(+292-26) 

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23859 

(2.4960) 

New York tadiime 


FFr 

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(8.5569) 

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153348 

(153.709) 

■ US LUNCHTME RATES 

£ 705 

(793) 





3- mo Treas 83te YM 

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Lflte long gia future: —Job 183£ (JunlMA) 

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Breni 15-day (Juno) . 

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London $3753 (374 J] 


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New York 
DM 136375 

ffr 5.705 

SFr 1.41455 

Y 16235 
London: 

DM 13661 (1.6682) 

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$ Index 653 

Tokyo dose Y ion 


For customer service and 
other general enquiries call: 

Frankfurt 
(69) 15685150 


WEEKEND MAY 7/MAY 8 1994 




m 


Mandela creates cabinet for unity 


By Michael Hobnan raid Mark 

Suzman to Johannesburg and 
Patti Waidmeir in Durban 

Mr Nelson Mandela yesterday 
appointed South Africa’s first 
government of national unity 
within hours of final figures con- 
firming that his African National 
Congress had won 62L65 per cent 
of votes cast in last week’s gen- 
eral election. 

The ANC emerged as over- 
whelming victor in the national 
vote, but it faile d to win in Kwa- 
Zulu Natal province, where 
the Inkatha Freedom party 
gained 50.32 per cent of the 
vote, and a one-seat majority in 
the 81-member provincial assem- 
bly. 

Inkatha’s victory in Natal, 
which local ANC officials have 
blamed on fraud, will help coun- 


Thabo Mbeki chosen as first deputy but finance ministry 
left unchanged as ANC fails to win two-thirds majority 


terbalance the ANCs power at 
national leveL 

The ANC’s victory was also 
tempered by failure to emerge as 
the largest party in the Western 
Cape, where the outgoing 
National party was the winner. 

Mr Thabo Mbeki, widely 
admired as a pragmatic politician 
and an experienced diplomat, 
was chosen as the countiy's first 
deputy president, making hfm 
the likely successor to the 75- 
year-old Mr Mandela. Mr F W de 
Klerk, the National party presi- 
dent. will be the second deputy 
president 

The choice of Mr Mbeki came 


after Mr Cyril Ramaphosa, the 
former trade union leader who 
played a vital role in last year’s 
constitutional talks, apparently 
declined a cabinet post He had 
been seen as a possible deputy 
president 

In a powerful message to the 
business community and to for- 
eign investors, Mr Mandela 
retained Mr Derek Keys in his 
post as finance minis ter, despite 
opposition from within the ANC. 
However, the crucial question of 
which cabinet portfolio would be 
allocated to Inkatha leader Chief 
Mangosuthu Buthelezl remained 
unanswered last night 


The ANC gained 252 seats in 
the 400-member national assem- 
bly, after falling shy of the two- 
thirds of the popular vote it 
needed to write a constitution 
without the agreement of other 
parties. 

Nationally, the National party 
won 20X8 per cent of the vote, 
lower than expected but above 
the psychological threshold of 20 
per cent needed to establish the 
party as a substantial force in the 
government 

Speaking In Cape Town, Mr 
Mandela acknowledged the need 
to reassure both business and the 
white community. “We realise 


the importance of leaving the 
portfolio of finance as it is - 
without interference," he 
said. 

He also referred to the ANCs 
failure to win two thirds of the 
national assembly, saying: “I am 
very happy that the concern that 
we would write our own constitu- 
tion has been allayed." 

The election was certified free 
and fair by the body charged 
with conducting the poll, the 
Independent Electoral Commis- 
sion, despite widespread evidence 
of irregularities. Judge Johann 
Kriegler, IEC chairman, said the 
election bad been "flawed" but 


added: “The heart of the matter 
is that we were able to establish 
the expressed will of the people 
with reasonable accuracy”. 

There are likely to be a total of 
six National party ministers in 
the cabinet, which wifl have a 
maximum of 27 ministers, as well 
as three ministers from Inkatha. 
Most of the remainder are expec- 
ted to come from the ANC. 

Last week Mr Mandela sought 
to broaden further the base of his 
new government by hinting that 
he would Include representatives 
of the radical Pan Africanist Con- 
gress, and the liberal, mainly 
white Democratic party which 
won 1.25 per cent and 1.73 
per cent of the vote respect- 
ively. 

Spirit of reconciliation, Page 3 
Man in the news. Page 8 


US bonds fall 
sharply on fear 
of rate increase 


By Michael Prowse to 
Washington and Patrick 
Halverson in New York 

Signs yesterday that US 
economic growth is surging 
prompted heavy selling of bonds 
and shares on Wall Street as 
analysts bet that the Federal 
Reserve would shortly signal 
another interest rate rise. 

In a turbulent market, the 
benchmark* 30-year Treasury 
bond dropped more than 2 paints, 
pushing the yield above 7.5 per 
cent to its highest level since late 
1992. Share prices .also fell 
sharply, with the Dow Jones 
Industrial Average down 4L32 at 
3,651X5 by early afternoon. 

The trigger for heavy selling 
was a Labour Department report 
showing employment had risen 

267.000 in April and about lm 
since the beginning of the year - 
a much faster pace than expected 
in financial markets. But for the 
distortions caused by a strike by 
the Teamsters’ union, the April 
increase would have been about 
337,000. Revised figures showed a 

464.000 gain in March. 

The jobless rate was also down 
sharply - at 6.4 per cent last 
month against 6.7 per cent in 
January. 

The figures suggest the econ- 
omy this quarter may be growing 
at an annualised rate of 4 to 5 per 
cent - faster than it can sustain 
in the long run. This follows a 
temporary slowing to 2^ per cent 
in the first quarter, reflecting bad 
weather and other distortions. 


Greenback hovers on the 
edge of the abyss Page 8 

Currencies Page 13 

Lex Page 24 


Many analysts now regard an 
early increase in short-term 
interest rates as all but inevita- 
ble. The betting is that the Fed 
will raise the federal floods rate - 
the cost of overnight money for 
banks - by half a point to 4£5 
per cent It may also raise the 
discount rate, the rate at which 
the Fed lends to banks; by half a 
point to 3.5 per cent 

A half-point increase in rates 
after a series of quarter-point 
moves would signal the Fed's 
resolve to prevent the economy 
from overheating. 

It would also reinforce the Clin- 
ton administration’s attempts to 
bolster the dollar on foreign 
ext&ange markets. In a nntahie 
shift of emphasis, Mr Lloyd Bent- 
sen, Treasury secretary, said this 
week the administration saw “no 
advantage in a devalued cur- 
rency”. Previously he had spoken 
only of the need to calm disor- 
derly markets. 

The Fed had been expected to 
delay a rate increase until May 
17, the next scheduled meeting of 
its policy-making open market 
committee. But following the jobs 
report and other stronger than 
expected economic data, an 

Continued on Page 24 


Allons-y! The tunnel is open 



Major hits 
out over 
threat to 
leadership 

By Philip Stephens and 
Kevin Brown in London 


Mr John Major, the UK prime 
minister, confronted head-on yes- 
terday the growing threat to his 
leadership as a shell-shocked 
Conservative party digested its 
worst performance for more than 
50 years in a nationwide British 
election. 

Confirmation of the govern- 
ment’s rout in Thursday's local 
government elections intensified 
speculation that a similar defeat 
in the June 9 European elections 
would spell the end of Mr Major's 
premiership. 

Mr Paddy Ashdown’s Liberal 
Democrats celebrated the biggest 
gains in the battle for 5,000 coun- 
cil seats contested across the 
country, adding 388 to their pre- 
vious total and claiming the 
party was now winning positive, 
rather than protest, votes. 

But Mr John Smith, the opposi- 
tion Labour leader, said his par- 
ty’s strong showing in once-Tory 
strongholds around London con- 
firmed it was poised to win the 
next general election. The gov- 


Continned on Page 24 
Full results, analysis, Pages 6-7 
Editorial Comment, Page 8 
Still fighting. Page 9 


France and Britain took an 
historic step closer to each other 
yesterday when Queen Elizabeth 
n and President Francois Mitter- 
rand officially opened the £10bn 
Channel tunnel. 

Full story. Page 4 Reuter 


Surge in mortgage lending 
lifts housing recovery hopes 


By Alison Smith 

A steep increase in the number 
and amount of mortgage loans 
approved in March gave the most 
significant boost yet to signs of a 
recovery in the UK housing mar- 
ket 

• That growth should feed 
through into an increase in mort- 
gage lending actually under- 
taken, when the figures for lend- 
ing by banks and building 
societies in April are released 
later this month. 

According to statistics pub- 
lished by the Bank of England 
yesterday, the number of loans 
approved in March was 99,000, 
with a total value of £5^bn. For 
the first quarter of this year, 
260,000 loans worth £13.81bn were 
approved - a return to levels not 
seen since late 1991. 

Total net mortgage lending in 
March amounted to £L84bn, com- 
pared with £L51bn in February. 


Mortgage landing 

Tow approved (Ebn) - 
seasonaBy adjusted 
15 



Source; Qarft cfl England 

Mr Adrian Coles, director gen- 
eral of the Council of Mortgage 
Lenders ((ML), said the figures 
for net advances - 22 per cent 
higher in March than in Febru- 
ary - made it clear the housing 
market was genuinely recover- 
ing. “Only a reversal of the down- 
ward trend in interest rates or a 
major change in the provision of 
income support for mortgage 
interest would be likely to under- 


government is looking at further 
restricting mortgage support, 
which currently costs £l-2bn. 

Mr Philip Jenks, controller of 
mortgage lending at Halifax 
Building Society, the UK's larg- 
est, said that the increase in 
activity had been spread pretty 
evenly across the UK, but had 
been particularly encouraging in 
the south-east of England. 

He added that while a similar ly 
sharp increase in mortgage loans 
approved was unlikely in April 
he expected the levels recorded 
In March to be broadly sustained. 

Mr John Wrlglesworth, build- 
ing societies analyst at stockbro- 
kers UBS, said the figures 
showed that the housing recov- 
ery had definitely arrived, but 
that they could have been dis- 
torted somewhat by buyers’ 
desire to take advantage of the 
low fixed-rate mortgages. 

Loyalty bonuses. Page 4 
Lex, Page 24; Merger splits 


1994 came to £5bn - the highest mine this recovery,” he said, 
since the first quarter of 1992. The CML Is concerned that the 


investors. Weekend ID,- C&G’s 
mortgage bait. Weekend V 

I CONTENTS 







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© THE FINANCIAL TIMES LIMITED 1994 No 32,360 Week No 18 


LONDON - PARIS - FRANKFURT • NEW YORK - TOKYO 


















FINANCIAL TIMES WEEKEND MAY 7/MAY S 1994 


NEWS: INTERNATIONAL 


Grachev plan likely to upset west 

Russia angles for 
special Nato link 


By John Uoyd in Moscow 

Russia is to present an 
alternative “Partnership for 
Peace” plan at a meeting on 
May 24 in Brussels between 
General Pavel Grachev, the 
Russian defence minister, and 
Nato leaders. 

The move threatens to create 
a rift between the Nato alli- 
ance and Russia- The former 
has made clear that the part- 
nership, aimed at bringing for- 
mer Communist states into 
association with Nato, is open 
to all on equal terms only, 
while Russia wants a special 
status. 

Gen Grachev said yesterday 
that “none of the [Nato] struc- 
tures have the right to subordi- 
nate those of the Conference of 
Security and Co-operation in 
Europe. None can avoid taking 
Russia's interests into account 
- as the case of Bosnia showed. 
What is being presented [in the 
partnership] is not quite 
acceptable to us. We came to 
the conclusion - why shouldn't 
we present our own proposal?” 

A draft of the Russian ver- 


sion of the partnership is to be 
ready in a week for approval 
by President Boris Yeltsin 
before being unveiled in Brus- 
sels. Gen Grachev said the 
Russian version could be called 
the ‘'Pragmatic Partnership” - 
echoing the phrase used by Mr 
William Perry, the US defence 
secretary, of the US-Russian 
relationship. 

However, Mr Ashton Carter, 
assistant US defence secretary, 
said in Moscow on Thursday: 
“There is no room for a special 
mechanism. 1 hope Gen 
Grachev will not bring with 
him such conditions.” 

The defence minister 
sounded a more threatening 
note on negotiations on troop 
withdrawals from Estonia, the 
latest round of which are now 
going on. In a dear hint that 
the 2£00 troops in the country 
could be augmented, he sald: 
*The problem is reliable guar- 
antees to provide normal 
human rights to the Russian- 
speaking population there. If 
the talks continue to drag on 
without results.the 2^00 troops 
we have there will stay. And if 


circumstances should change 
it won't take long for us to 
provide reliable security for 
Russian military bases in 
Estonia.” 

The withdrawal date for all 
Russian troops has been set at 
August 3L Busman troops have 
already withdrawn from Lith- 
uania and an agreement to 
withdraw those based in Latvia 
was signed last month. 

Gen Grachev’s comments 
revealed both the opportunities 
and the tensions in the Rus- 
sian military's relationship 
with the west - a relationship 
deepened by two days of talks 
between senior Russian and US 
officials in Moscow on Wednes- 
day and Thursday. 

Following the talks, Mr 
Carter, who led the US side, 
said that the two former adver- 
saries had informed each other 
of strategic and other issues 
with an unprecedented degree 
of openness - and that they 
would now extend this policy 
of giasnost into hitherto forbid- 
den zones such as the number 
of warheads and the storage of 
fissile materials. 


Israeli backlash grows 
against self-rule accord 


By Julian Ozame in Jerusalem 

An Israeli backlash against the 
Palestinian self-rule accord 
intensified yesterday as right- 
wing politicians denounced the 
possible return of hundreds of 
thmiMwda of Palestinian refu- 
gees and farmers complained 
about the costs of the eco- 
nomic agreement 

Right-wing members of the 
Knesset (parliament) criticised 
the government after Israeli 
and Palestine Liberation 
Organisation officials said they 
would start negotiating the 
first significant right of return 
of Palestinians who fled their 
homes during the 1967 Six Day 
War. Israel rays up to 200,000 
could be eligible to return but 
the PLO says the figure is 
much higher. 

The right-wing opposition 
Likud party said the return of 
Palestinian refugees would 
lead to a demographic disaster 


and accused the government of 
“substituting the return of 
Jews with the return of Pales- 
tinians”. The Tsomet party 
called for new elections. 

Mr Rehavam Zeevi, leader of 
the Moledet opposition party, 
said: “After the return of the 
1967 refugees there will be a 
return of the 1948 refugees and 
later the return of Jews to 
their co untries of origin.” 

The Israeli right wing, mar- 
ginalised by the self-rule agree- 
ment, is attempting to mobilise 
a sceptical Israeli public to pre- 
vent the government from 
making further concessions to 
the PLO. 

On the economic front, pro- 
tected Israeli farmers who will 
face competition from cheaper 
P alestinian producers for the 
first time since 1948 called for 
urgent talks with the Finance 
Ministry. Israeli manufacturers 
also warned that they would 
lose $1.4bn (£960m) in sales 


over three years as a result of 
losing market share in the 
self-rule areas. The association 
said 9.000 jobs would be lost 

Hie PLO continues to make 
plans for its delayed deploy- 
ment of Palestinian police in 
the Ram Strip and West Bank 
enclave of Jericho. In Tunis Mr 
YaSSir Arafat, PLO chairman, 

was trying to ffnalfcp his 
list of appointments for the 24- 
man national authority which 
will govern Gaza-Jericho. 

The delay in appointing the 
national authority is slowing 
the. transfer of power from 
Israeli to Palestinians hands, 
but is likely to be extremely 
controversial in the occupied 
territories, where a power 
struggle for positions is 
already under way. 

The latest list includes 11 
from outside the territories 
and 17 from prominent families 
and political activists in the 
West Bank and Gaza. 


NEWS IN BRIEF 


UN orders 
tight Haiti 
blockade 

The United Nations Security Council yesterday 
unanimously ordered a near-total blockade of 
Haiti In a renewed bid to oust the country's 
military leaders and restore president Jean-Ber- 
trand Aristide to power, Michael Littlejohns 
reports from the United Nations in New York. 

But the Council also gave members of the 
ruling junta 15 days to avoid the measures by 
observing the terms of the Governors’ Island 
Agreement concluded last summer, on which 
they reneged. Lieutenant-General Raoul Cedras 
had agreed to step down as commander-in-chief 
last October 15 in preparation for Mr Aristide's 
return. 

The new embargo would extend an existing 
ban on oil and arms shipments to indude all 
trade except food and medicines. It would also 
freeze Haitian assets abroad. 

Congressman faces 
indictment 

The federal prosecutor in Washington has sent 
to the Justice Department an outline of a pro- 
posed indictment of Congressman Dan Rosten- 
kowski. who has been investigated in connec- 
tion with the alleged misappropriation of funds 
from the House Post Office, according to the 
Washington Post, Jurek Martin reports from 
Washington. 

If charges are filed. Mr RostenkowskL an 
Illinois Democrat, wonld be obliged to step 
down as chairman of the House ways and 
means committee until the case is resolved. 
Neither he nor his lawyer bad any immediate 
reaction to the report 

The most immediate legislative consequence 
or his removal from the committee chairman- 
ship would be on President Bill Clinton’s 
healthcare reform proposals. 

Colombia softens 
drugs stance 

Colombia's constitutional court has overturned 
existing legislation and decriminalised the use 
of some drugs, including marijuana and 
cocaine. Sarita Kendall reports from Bogota. 
Despite strong criticism from the government 
and many other sectors of society, there is no 
authority over the court and the decision is 
expected to become official next week. 

The production, distribution and sale of 
drugs continues to be illegal. 

Warning of 
Hungarian backlash 

U^piy's governing conservatives are resort- 
®S to increasingly desperate measures to ward 


off the widely predicted return to power of the 
former communists - now the Hungarian 
Socialist party - in parliamentary elections 
tomorrow, Nicholas Denton and Chrystia 
Freeland write from Budapest 

A leading conservative official warned of a 
far-right backlash if the Socialists dominate the 
next government and, as the conservatives fear, 
impose controls on the media. 

“If the Socialists establish a monopoly, there 
wonld be a civil war,” Mr Ferenc Kalin, leader 
of the parliamentary group of the governing 
Hungarian Democratic Forum, said. 

French privatisation 
to go ahead 

Mr Edmond Alphandfery, the French economy 
minister, yesterday vowed to press ahead with 
his government's privatisation programme fol- 
lowing the strong response to the FFrl8J5bn 
(£2.2bn) sale of the state's stake in Union des 
Assurances de Paris (UAP), the insurance 
group, Alice Rawsthorn writes from Paris. 

The public p art of the privatisation of UAP, 
the biggest insurer in France and the second 
largest in Europe, attracted applications from 
L9m Individuals for 2.5 times the number of 
shares available, according to the economy 
ministry. 

Paribas, the bank in charge of the institu- 
tional pari of the Issue, said that tranche had 
been four times subscribed. 

Turkish economic 
prospects brighter 

Turkey’s economic prospects brightened yester- 
day after parliament passed passing laws on 
tax and privatisation, the twin pillars of the 
government's bid to cut its deficit, John Murray 
Brown writes from Istanbul. 

The privatisation law, passed late on Thurs- 
day, gives the cabinet powers for three months 
to sell off state companies by decree. The aus- 
terity programme unveiled by Prime Minister 
Mrs Tansu Ciller envisages revalues of $&5bn 
in 1994 from state asset sales. 

Norway to float 
currency 

Norway announced yesterday it would formally 
adopt a floating rate currency policy, marking 
a shift from a long held target of re-establish- 
ing a fixed rate for the domestic currency, 
Karen Fossli reports from Oslo. The krone was 
delinked from the European Currency Unit on 
December 10 1992. 

The aim of the move is to stabilise the krone 
against European currencies at around current 
levels and is a formalisation of practices under- 
taken since last spring. 

The krone yesterday traded about 5 per cent 
below its former central rate against the Ecu. 

Should Norway join the European Union, 
however, it intends to take part in European 
monetary arrangements and the parity grid. 
Norway will hold a referendum in November on 
membership of the EU. 


Arrest of a. 
paradoxical 
Spaniard 


A scapegoat or the most 
prominent fraudster in the 
country? Thursday's dawn 
arrest of Mr Mariano Rubio, 
titie former governor of the 
Bank of Spain and now an 
fnmate of Madri d's Sprawling 
Carabanchel prison, has 
unleashed a heated national 
debate. 

The arrest, the first in con- 
nection with the spate of scan- 
dals that has engulfed the 
Spanish government, took 

Can the austere 
Mariano Rubio 
really be a 
fraudster? Tom 
Burns reports 

place hours before Prime Min- 
ister Felipe Gonzalez dismissed 
calls for his resignation and 
promised in a press conference 
to root out coiTUption. 

The arguments reflect the 
contradictions that surround 
the haughty and academic Mr 

Rubio. Not least among the 
paradoxes is the tact that the 
63-year-old. who is formally 
accused of tax evasion and fal- 
sifying public documents, is 
already familiar with the ritual 
of Checking iDtO nnralMmnfMl 

He went through the routine 
of strip body search, head shot 
photographs, finger printing, 
removal of trouser belt and 


shoe laces in 1956, when he 
was he was linked to a cl an d es - 
tine socialist group at Madrid 
University’s economics faculty 
and sentenced to two years’ 
j ail by the Franco dicta t ors hip . 

The security police who 
arrested him nearly 40 years 
ago, aod severely beat him. up, 
were commanded by bis own 
father, who was an army colo- 
nel. It was just as ironic that, 
q fthivig h an atheist as well as 
a left-winger, he was subse- 
quently released when General 
Franco mark ed th e accession 
of Pope John XXOI with a par- 
tial amnesty. 

But the main contradiction 
about the disgraced Mr Rubio 
is that he was a role model for 
those committed to profession- 
alism , austerity, decency and 
democracy. Mr Juan Tomas de 
Salas, who faced -■rtmilar repri- 
sals under Franco ism and went 
on to become a campaigning 
newspaper editor, recalls that 
Mr Rubio even refused to take 
up soft mortgage loans offered 
by the Bank of Spain when he 
started work in the institu- 
tion's research department. 

It is alleged that at the very 
tima Mr Rubio consolidated his 
reputation as an outstanding 
public servant he was allegedly 
keeping from the taxman a 
PtalSOm (£644,000) share port- 
folio that was managed by his 
li fairing friend and broker Mr 
Manuel de la Concha. 

A one-time nhwh-mnn of Mad- 
rid's stock exchange, Mr de la 



Rubio: once a role model for professionalism, democracy and decency 


Concha was arrested along 
with Mr Rubio and the two 
now share a celL 

As deputy governor of the 
Bank of Spain between 1977 
and 1984 and then governor 
until 1992, Mr Rubio steered 
tiie firemrial system though a 
hanking crisis, subtly encour- 
aged hanking mergers and con- 
solidated a renewed financial 
sector by demanding strict sol- 
vency ratios and ordering regu- 
lar inspections. 

A paragon of economic 
orthodoxy, he regularly chas- 
tised the government for its 


spending and successfully lob- 
bied for the peseta’s 1989 entry 
into the exchange rate mecha- 
nism of the EMS, to force bud- 
getary discipline on his politi- 
cal masters. 

“Whatever his private deal- 
ings were, Rubio was one of 
the greatest governors the 
Bank of Spain has ever bad,” 
says Mr Jorge Kay, a senior 
executive at Banco Central 
Hispano and a student col- 
league of the former governor. 

In an interview published by 
the ABC newspaper yesterday 
Mr Rubio insisted that he was 


unaware of having evaded 
taxes. In an editorial the news- 
paper rfaTmad that the former 
governor had been summarily 
imprisoned “to suit the politi- 
cal convenience of the prime 
minister”. 

Mr Rubio’s lawyers, who are 
petitioning for his release, say 
the former governor is the vic- 
tim of discrimination because 
the tax he is alleged to have 
evaded - Pta6.lm - is well 
below a revised PtalSm level 
which the authorities plan to 
establish as the threshold for 
pressing criminal charges. 


Japan withdraws atrocity claim 


W Europe 
new car 
sales fall 

By Kevto Done, 

Motor industry C o rre sp ondent 

West European new car sales 
fell in April by 1.2 per cent to 
L08m according to provisional 
figures released yesterday by 
the European Automobile Man- 
ufacturers Association (Acea) 
and the- Spanish motor indus- 
try federation. 

The fall was the first year- 
on-year decline this year and 
bas halted, at least temporar- 
ily, the fragile recovery in west 
European new car demand, 
which started in the first quar- 
to. 


West European Hew Car 
Registrations* 


Apr* NChs 
1904 yr-oo-yr 


TOTAL MARKET 1,084*20 

-1.2 

Germany 

297.700 

-12.4 

Italy 

169.950 

- 2.8 

UK 

142,010 

+4.8 

Franca 

184 £30 

+17.2 

Spain 

69,650 

+7.2 

Netherlands 

40,070 

-1.4 

Btfgksn & 

40.170 

-4 J2 

Luxembourg 



Austria 

30,500 

-15-3 

Switzerland 

27,500 

-6.1 

Portugal 

19,570 

-165 

Sweden 

15,450 

+41 JB 

Greece 

12^30 

-18 JS 

Denmark 

11,970 

+36J 

betand 

8,070 

+6.0 

Norway 

7.420 

+62.0 

FWand 

6,130 

+15.9 


TVomtonl flgm*. 

Samar emepeen AxoraotUa M imrtVnnin 


*aocMor,faa4 


By WBflam Dawkins in Tokyo 

Mr Shigeto Nagano.. Japan's 
justice minister, yesterday 
withdrew his claim that an 
infamous Japanese wartime 
atrocity never happened. Bat 
his unconvincing retraction 
prompted fresh calls for his 
resignation. 

Mr Nagano's riaftn, that the 
1937 massacre of Nanking was 
a fabrication, has angered 
China, South Korea, and other 
neighbours, throwing a shado w 
over Japan’s recent statements 
of regret for the war. 

The massacre of Nanking 
was an “undeniable fact” said 
Mr Nagano yesterday, in a 
stilted apology, restricted to 
the wording of an earlier gov- 
ernment statement 

He even failed to impress his 
own coalition ally. Komeito, 
the clean government party. 
Mr Ytdchi Ichikawa, Kometto's 
secretary general, said this 
“does not release him from the 
need to take the responsibility 
as a cabinet minister.” The 
Social Democratic Party, 
Japan's second largest opposi- 
tion group, said Mr Nagano’s 
retraction did not end the mat- 
ter and he should step down. 

China yesterday sought to 
calm the row when president 
Jiang Zemin told a visiting 
Japanese politician that he 
wanted to develop friendship 
with Tokyo “while keeping in 
mind the past as an admonish- 
ment for the future,” said offi- 
cials. 

However, the South Korean 
foreign ministry summoned 
the Japanese ambassador, to 
ask the Tokyo government to 


explain its position on Japan's 
war record. A war victims’ 
association staged a demon- 
stration outside Japan's Seoul 
embassy, in which they burned 
an effigy of Mr Nagano and 
demanded his resignation. 

Mr Tsntomu Hata, the new 
prime minister, is understood 
to be furious over Mr Nagano’s 
remarks and the diplomatic 
damage they have caused. He 
is expected to discuss with cab- 


inet colleagues how to respond 
after bis return from a Euro- 
pean tour on Sunday. 

The row shows the difficul- 
ties Japan faces in trying to 
confront its wartime responsi- 
bilities. where it lags far 
behind Germany in voicing 
official regret for the past 
This accounts for one of the 
largest cracks in Japan's 
national consensus. 
Reform-minded politicians 


on left and right, including the 
conservative Mr Hata, believe 
that heartfelt apologies for the 
war are a key to improving 
Japan's international credibil- 
ity. 

The traditionalist right wing 
does not accept Chinese 
accounts of the war and 
believes former prime minister 
Morihiro Hosokawa went too 
far, last year, in making the 
most explicit apologies to date. 



A South Korean woman protests outside file Japanese embassy in Seoul yesterday against Shigeto 
Nagano’s claims that the 1937 Nanking massacre by Japanese troops in China was a fabrication > 


Civil war engulfs divided Yemen 


Eric Watkins explains why politics and religion have torn the country apart 


The outbreak of civil war in 
Yemen has all but put paid to 
the country’s aspirations to 
become a unified, democratic 
and modern state. Instead, 
there are fears that prolonged 
fighting between rival north- 
ern and southern factions 
could lead to the establishment 
of two or more Yemens, or 
worse, to complete fragmenta- 
tion. 

This week's fighting is pri- 
marily the outcome of growing 
economic disarray, and of 
irreconcilable political aims 
which have marred the union 
of north and south contrived 
nearly four years ago. 

The leaders of the two Yem- 
ens. General All Abdullah 
Saleh for the north and Mr Ah 
Salem al-Beidh for the south, 
each had good reason to enter 
the union. 

With the collapse of the 
Soviet Union in fee late 1980s, 
Mr Beidh and his Yemen 
Socialist party were in a highly 
exposed position. 

Having supported Marxist 
incursions into Afghanistan, 
Ethiopia and neighbouring 
Oman, Mr Beidh and his politi- 
cal partners were isolated from 
the rest of the Arab commu- 
nity and, with the example of 
the Ceau§escu regime in 
Romania before lham, faced a 
sudden end to their political 
careers. Foreign debts of some 


$5bn (£3.4bn) and few sources 
of revenue added to the south- 
erners’ precarious position. 

In the north, Gen Saleh was 
also having problems. 
Although he had provided a 
stable regime for some 10 
years, the parliament elected 
in 1988 was already beginning 
to launch investigations into 
his government and, not least, 
was demanding greater demo- 
cratic freedom for itself and 
the people in general. 

The north's debts were lower 
and its assets greater, espe- 
cially because of oil production 
begun under Gen Saleh, but 
its economy was beginning 
to falter from high imports and 
a drop in remittances from 
expatriate workers in the Gulf. 

The union of south and 
north Yemen on May 22 1990 
was thus a marriage of conve- 
nience involving two sickly 
economies, dressed up for pop- 
ular appeal with promises of 
democracy. 

Yemen’s Gulf war stance 
contributed to its descent into 
civil war. While condemning 
the Iraqi invasion of Kuwait, 
Yemen likewise condemned 
the US-led coalition and called 
for negotiations within a 
purely Arab context 

Stung by such lacklustre 
support from their impover- 
ished neighbours, Saudi Arabia 
quickly changed its residency 


rales in September 1990, forc- 
ing nearly im Yemenis to leave 
the country. 

The sudden decline in remit- 
tances and the simultaneous 
needs of so many extra people 
were disastrous for Yemen’s 
economy. A year later, the 
Yemeni riyal was trading at 37 
to *1, a drop of nearly 200 per 
cent over its pre-war value. 
Today it trades at 78 to SI. 

Political in-fi ghting has been 
the chief cause of Yemen's con- 
flict Almost from the outset of 
unification, Yemen found itself 
plagued by a series of unex- 
plained assassinations and 
attempted murders. Omi- 
nously, most of the targets 
were Mr Beidh’s political asso- 
ciates. Repeatedly, the social- 
ists demanded stronger secu- 
rity measures and determined 
efforts to catch and punish the 
assassins. The Saleh regime 
turned a blind eye to the prob- 
lem and, as it did so, the south- 
erners became increasingly 
convinced of its determination 
to see them liquidated. 

Elections on April 27 1993 
also convinced Mr Beidh and 
ins party of Gen Saleh's inten- 
tions to marginalise their role 
in the government. Within 
days of the voting, the funda- 
mentalist Islah party began to 
demand a greater role in gov- 
ernment because of its perfor- 
mance at the election. The 


socialists grudgingly yielded 
and, together with Gen Saleh's 
General Peoples’ Congress, 
entered into a coalition with 
islah . 

The new coalition had no 
sooner been formed than faiah 
leaders, with the apparent 
approval of Gen Saleh, began 
to demand a repeal of socialist- 
sponsored legislation. Fearing 
the gradual erosion of his par- 
ty’s position and the potential 
annexation of the entire south 
as a result, Mr Beidh left Sanaa 
in August 1993, vowing not to 
return . 

In September 19S3 he issued 
an 18-point progr amm e of 
national reform and demanded 
its implementation as a condi- 
tion of his return to Sanaa. 
Though Gen Saleh and Mr 
Beidh eventually signed the 
agreement last February the 
document has never been 
implemented, nor Is It ever 
likely to be. 

The crisis turns on many fac- 
tors, not least last year’s par- 
liamentary elections. Few in 
Yemen accept the results as 
genuine, citing many abuses in 
the electoral proceedings 
before, during and after the 
vote. As the editor of one news- 
paper recently wrote, they 
were “make-believe elections". 

But Gen Saleh and his politi- 
cal allies claim to have won a 
legitimate mandate amt with 


it, the right to use ndtttuy 
force to preserve the unity 
forged four years ago. 

Mr Beidh does not accept 
Gen Saleh's c laim to legiti- 
macy, seeing it as a ploy to 
annex the south and to impose 
his will by force over the entire 
nation. 


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NEWS: INTERNATIONAL 






tc 



Four years after Nelson Mandela walked to freedom, South Africa’s new president reaches out to his one-time opponents 


Spirit of reconciliation sweeps aside letter of vote 


The election was deeply flawed, but 
nearly everyone likes the outcome, write 

Patti Waldineir and Michael Holman 


How they voted: results* 



SOUTH 

AFRICAN 

ELECTIONS 


South. Africa 
has delivered 
what one polit- 
ical analyst 
yesterday 
described as a 
“designer out- 
come": a politi- 
cal settlement 
which binds In 
all the signifi- 
cant parties, and leaves only 
the tiniiaat fractions to far 
left and right out in the cold of 
extra-parliamentary opposi- 
tion. Even Inkatha, most reluc- 
tant participant in the process, 
now has a vested interest in 
success. 

The outcome, reached after 
10 days of electoral bungling 
and administrative farce, 
might have been designed by a 
higher power to bring 
long-term stability in the new 
South Africa. 

The African National Con- 
gress is strong, but not over- 
whelmingly dominant: it did 
not the tWO third s Of tha 
national vote which would 
have made it simpler to force 
through its ideas on a new con- 
stitution in the constituent 
assembly. And crucially, it did 
not gain control of two impor- 
tant provinces, KwaZulu Natal, 
with a fifth of the population, 
and the Western Cape. 

The National party did not 
Care as well as outgoing Presi- 
dent F.W. de Klerk had hoped, 
but it did scrape past the 20 per 
cent psychological barrier 
needed to give the party a sub- 
stantial power base from which 
to ar-gue the interests of minor- 
ities within the government of 
national unity. Mr de Klerk 
will be one of two deputy presi- 
dents; and the party's support 
within the civil service, the 
security forces and the busi- 
ness community will give it 
added clout 

Even more important, the 
inkatha Freedom party won 
the province of KwaZulu Natal 
with a fraction over SO per cent 
of the vote, giving the party a 
one-seat majority in the 81- 
member provincial assembly. 
Local ANC officials are scream- 
ing foul play, and they are 
almost certainly right there 
were no doubt many petty 
frauds, and perhaps some 
grand ones committed in the 
province. But the ANC’s 


national leadership has either 
decided to accept that its 
hands, too, were not clean; or 
more plausibly, the ANC sim- 
ply accepted that it had to con- 
cede the province to inkatha, 
or jeopardise the whole elec- 
tion. 

The ANC paid a high price 
for ensuring that the election 
outcome was accepted by 
Tnkatha: ft surrendered Natal, 
whore 15,000 people have died 
in the past decade in fighting 
which the ANC blames on the 
IFP. But this was almost cer- 
tainly the wisest course: for 
with Inka tha running well 
ahead in the polls (however 
crooked the results may have 
been), the party of Chief 
Mangosuthu Buthelezi would 
never have accepted defeat 
And it is likely to prove much 


The political 
parties have 
decided that 
it does not 
matter ‘who 
crooked more’ 


less belligerent within govern- 
ment than without 

ANC supporters on the 
ground are unlikely to concur: 
they rill find it hard to swal- 
low an electoral result which 
they fervently believe is based 
on fraud. But the ANC leader- 
ship, even an the local level, 
has made clear that it will 
preach acceptance of the out- 
come. ANC southern Natal 
regional secretary Jeff Radebe, 
yesterday a minister in 
the new national government, 
fumes and complains but con- 
cludes that the ANC must 
accept the result “We have no 
alternative," he says, but adds 
that provincial realities will 
force the two parties to work 
together even so. 

"The IFP knows in its own 
heart of hearts that even If 
they win this election, there is 
just no way that they can rule 
this province without us. We 
are the power in the Durban 


area: there is just no way they 
can be a bull in the kraal." IFP 
leaders agree: under the consti- 
tution, the two parties must 
share power in the 10 -member 
regional executive, along with 
the outgoing National party. 
(The IFP is likely to have five 
executive seats, the NP one 
and the ANC three or four). 

Both sides agree that the two 
top leaders in the province, the 
ANC’s Jacob Zuma and the 
IFP’s Frank Mdladlose, get cm 
extremely well. “It's a love 
relationship - to the annoy- 
ance of both sides,” says a 
senior IFP leader. He holds out 
high hopes that the two men, 
both moderates, can help bring 
peace to NataL 

So, four years after Mr Nel- 
son Mandela was released from 
jail. South Africa has delivered 
a political settlement that 
could bring lasting stability. 

But not all was perfection: 
the liberal Democratic party 
was nearly wiped from the 
national slate, g aining only 
L73 per cent or the national 
vote, casting doubt over the 
future of liberalism in Africa 
and substantially reducing its 
role in writing the new consti- 
tution (though it has more sup- 
port in provincial parliaments). 
The right-wing Freedom Front 
fell far short, of its goal of 
800,000 votes, the total 
demanded by the ANC in 
exchange for taking the 
Front's demands for an Afrika- 
ner homeland seriously. The 
ANC could, on this basis, 
decide to refuse the Front’s 
demands; but it knows it can- 
not do so without provoking 
further right wing violence. 

And the poor showing of the 
black-supremacist Pan African- 
ist Congress, with only L25 per 
cent of the vote, will enrage its 
supporters. But the PAC’s 
defeat reflects a welcome rejec- 
tion of black-an-white racism. 
South Africans did vote 
racially. 85 per cent of blacks 
and almo st no whites for the 
ANC, almost no blacks but the 
bulk of other races for the NP. 
But they did not vote for rac- 
ism; and that must he good for 
South Africa. 

No one will ever know If the 
result is an accurate reflection 
of the will of the South African 
people; i ndeed, if it is so, it is 
probably by accident. “Both 



2- African Natk^ Conyasa (ANC) 

.<! Jnkalto Freedom party (IFF*) 

' : 

* Democratic parly GDP) . 

£ .Afttejm.OMstian Dentocratic party (ACDP) 


” Votes- 

12^*37,655 


2^294 
: -CM .555 

338*428 
■■ swwra 

88,104 



Pretoria/Wtwratersraad/ | 


Vareeofglng (PWV) 



- Pravtncfal (ooMitiira' 

Santa 

Seats. . 

.. 

. . vote* 



252. 

AKQ 

' 2. 418^267 

SO 

.'.82 

NP 

1,002,540 

21 

43 . 

FF ' 

258,935 

6 

‘9 

DP 

223,548 

5 ‘ 

VP ■ 

153J367 

3 

7 

PAC 

61.512 

1 

5 

ACDP 

25£4? 

.1 


tsent IMF), Lftgect Pkiptea fornrtt (UPF). ' ' 
MlWRS PaxtyerSoulhAHcarDPSA) 


mM 


■' Votes 4tS8m- 
Kef (jstforta! vcfoig popiiiiwn; 21.4%S 
FtmtfKMtoglQiattffK 68 seats 




V'. T*#.* 

v.rj&l 

,:Nt> ' 1*0.452' ' 4 1 

*PAC ' 24*451- • - ■; 

• V • 

Ridfcntsi vtf&m 75^6 


National Assembly: 22.72m voters 

Rom raSaotf fists: 

From provincial fiats: 


400 t 

200 

200 


TTio prwtoidantsfo aisQ olact tte 426 members 
(or the nine provincial fogfetatums 


Northern Transvaal 

‘ Provincial legtofcUure 
raua 


Seats 






•si MB 

~'NP 163,452 . 12 

461 k '-t 

<DP • 7,587 1 p 

J-PAC;;,X ■3fc*(tt.-CCo;x S*’.*' 

JjllFP' . . 1,688- ■ •, 

:5<WiifS^ 

ip* 

i n 

■■ tSP.: •» 7 :,fc.,i2sr.:- 

‘ANC - ‘ 705.578' 14 

iFP . . 44,003 . 1 » 

;*.PAC ■ • 22.878 - • - ;; 

< 





ANC 

1.759,597 . 

38 

NP 

62.745 

1 

FF 

41,193 

1 

PAS 

24,360 

- 

UPF 

10,123 

• 

ACDP 

7,363 

- 

Voteree zaam 


n of national voting population: 10 . 1 M 

ProvinoU lagtaletL&'a: 40 amts 

1 

Eastern Trganiaal 


Rmtndal legislature 

Seats 


- votm 


ANC 

1,070,062 

25 

NP 

119,311 

3 

.FF ' • 

75,120' 

2 

PAC 

21,679 

- 

.IFP 

20.147 

- 

DP 

7,437 

- 


Voters; unm 

96 of ..national voting population; 7.0% 

p 1.j la, iiinlsili ■ M - «- • 

tTnwrin ioytdiw&xrc ju awrcfr 






NP ■ 286,029 6 ; 

■ PAG. 58,475 1 ' 

WW" 


K '- - '■ 



Kv«Zulu/»^ 

= V hLx<z : « ^ - •' 

*• * # • .wwncui I BS^K9QIUr9 #/ 

v; r- • 

X r&qtuo \ 

.ANC 1,181,118 

'DP 78510 

'PAC • 26,801 1 , 

' 1 ^ 

fc 4w— nfr. \ W^.., vC . %l , ». 

'Kofc 

aim 


rsobb 

'■ 41 . 
26 

2 


. North-West- 


’ ■prowr»eMlo6kfa**» 
votea 

ANC * 1510,080. - 28 

NP 138,986 3 

■"& ” ' " I v72^2) .. .1 

.PAG 27^74 

.DP- ;■* : 7,894" 

IFP 5,948 

'■ACW'V. ■ jSJMj - •• 

.sfdto&.tjrawu 1 V r . ' ’ ■, 

'%(*. .HatkSnid^ 

[IPpivWc^Iasiiaijiei .!• •* . 

„ ,r.r. »■!■■■■■•■■■■ ■■■■■ ■■■ 


What they voted for ■ ■ 

'WAnatlonal parfiament with two houses: a 400-seat National Assembly, elected by the people, and a 90-aaat Senate, with 10 members elected 
. lnd&BCtty by each af the nine provincial legislatives. 

■■The voter voted twice, once for a single party or organisation on the natiorred lists and onoe for a single party or oigantaatforr on the provincial Rats. 
M National Assembly seats w8l be afloMtri by proportional representation. 200 from national Bats and 200 from provincial lists, except in the case 
. of the National party, which had no national tat andwM choose aft its representatives from provindaJ lists. 

■ Provincial legtalatiMe range bora M to 86 members, seats aBocatad by piopanional reprerontatlon. . 

■ National cabinet posts wlfl be aflocated proportlonatrfy from parttes holding a mirwmim of 20 seats. 

■Klhe p resMerrt wffl be o t octod by a joint session of b^r. houses. 

* Provtsionai results fhsm 1EC; \ratee counted 19,72B^79.«I«ivhicii 193.081 baSots spofied 


sides crooked like hell and it 
requires the wisdom of Solo- 
mon to sort out who crooked 
more," says one political 
insider. 

Perhaps, fortuitously, the 
manifold irregularities experi- 


enced in polling and counting 
truly cancelled each other out 
perhaps more overt manipula- 
tion was applied to the result 
For there is such a neat paral- 
lel between what was supposed 
to happen, and what did hap- 


pen, that one can be forgiven 
for wondering whether it is not 
the result of a serious interven- 
tion. 

But South Africans do not 
seem to care. The political par- 
ties have decided that ft does 


not matter “who crooked 
more"; the concensus view is 
that the South African people 
have spoken, and none dare 
gainsay that accepted truth. 
For, after all, things could 
have been so much worse. 



Clockwise from top left: Derek Keys (finance). Alfred Nzo 
(foreign), Chris Stals (bank governor) and Joe Madise (defence) 


Mandela delights whites and investors 


By Patti Waldnwfr 

Mr Nelson Mandela does not miss a 
trick. Despite opposition from within 
his own African National Congress, he 
yesterday delighted investors, business- 
men and white South Africans by 
retaining Mr Derek Keys as the finance 
minister. 

Nothing else would have persuaded 
the outside world - not to mention 
sceptical South Africans - of his com- 
mitment to free market economics and 
podttcal moderation. Again and a g ain , 
Mr Mandela has stressed the need to 
restore business confidence and attract 
foreign investment Yesterday he took 
the most concrete step possible toward 
achieving those goals. 

In the two years since he was 
appointed frnanfta minister by outgoing 
President F W de Klerk, Mr Keys has 
proved a tough fiscal itisriphnarlan. He 
has halted the rise in government 
spending, and reined in the budget defi- 
cit. And best of all, he has amply dem- 
onstrated that he is his own man. and 
no politician’s fool. He would not have 
accepted the post of finance minister in 
an ANCMed go vernm ent without assur- 
ances from Mr Mandela that economic 
fHsriptine would be maintained. 

He realises the importance of leaving 
the department, the portfolio, of finance 
as it is - without Interference," said the 
pragmatic Mr Mandela in Cape Town, 


flanked by his two new deputy presi- 
dents, Mr Thabo Mbeki of the ANC and 
Mr De Klerk. 

The other central economic post gov- 
ernor of the Reserve Bank or central 
bank, will also be unchanged: monetary 
disciplinarian Mr Chris Stals will 
remain as governor when his term ends 
in July. 

The moderate tone established with 
the re-appointment of Mr Keys will be 
further strengthened by the news that 
Mr Thabo Mbeki Is to be first deputy 
president, effectively Mr Mandela's 
prime minister and probably his politi- 
cal heir. Mr Mbeki has long represented 
the acceptable face of the ANC to the 
business community, at home and 
abroad; he has served as unofficial 
ambassador to white South Africa since 
the early 1980s, when secret contacts 
began between the ANC and liberal 
Afrikaners. 

Whites know and like him; articulate, 
wall educated, urbane and charming, he 
soothes their fears. 

Few other candidates could have put 
such a conciliatory stamp on the cabi- 
net Mr MbekL's chief rival for the post 
of deputy president Cyril Ramaphosa, 
is a brilliant strategist and fearsome 
political negotiator. He would have 
been tougher, but perhaps not better. 
Mr Ramaphosa has opted to remain out- 
side the cabinet working to strengthen 
the ANC as party secretary general. 


THE CABINET 

President Nelson Mandela 

Hret deputy president Thabo Mbald 

Second deputy president F.W. De Klerk 

Finance Derek Keys 

Foreign Alfred Nzo 

Trade and Industry — Timor Manuel 

Defence Joe Morfise 

Housing end welfare Joe Slow 

Justice Duflah Omar 

Labour Tito Mboweni 

Minister without portfolio Jay Naidoo 

Poflce Sydney MufamacB 

Education, Arts and 

Ctiture Slbusteo Bhongu 

Health Nkoaazana DlamlnJ Zuma 

Tra n s p ort Mac Maharaj 

Provincial Affaha KaderAsmal 

Public E n t e rpri s es Stella Stgeawu 

PubBc Services Zola Skweytya 

Public Works Jeff Radebe 

Correctional Services .Ahmed Kattirada 


This is exactly the post he always said 
he wanted; but no one believed him, 
suspecting he had higher political ambi- 
tions. 

Apart from these certainties, some 
posts remain unfilled. The ANC has 
said there will be six National Party 
ministers, but has named only one (Mr 
Keys); and it has not named the three 
Tnkatha Freedom Party ministers due to 
be appointed to the government of 
national unity. Somehow, Tnkatha Free- 


dom Party leader Mangosuthu Buthe- 
lezi must be accommodated in a post 
which acknowledges his surprisingly 
strong electoral showing: 10.5 per cent 
of the national vote. Easily offended, 
his pride must be assuaged; this will 
not be an easy task. 

There are also some wildcards, and 
some weaknesses, in the remaining 
ANC appointments. Mr Jay Naidoo. 
appointed minister without portfolio, Is 
expected to oversee the ANC’s recon- 
struction and development programme, 
though it is not clear how much power 
he will have over finance minister Mr 
Keys. Mr Mandela has made abun- 
dantly clear that he will brook no oppo- 
sition from anyone on Implementing 
the programme - apparently including 
Mr Keys. There could yet be conflict, 
when the programme's goal of black 
uplift inevitably clashes with the need 
for fiscal discipline. 

One notable weakness is foreign min- 
ister Alfred Nzo, former ANC secretary 
general, who was replaced three years 
ago, partly because of poor perfor- 
mance. He will do little to raise South 
Africa's international profile. 

Both police and defence have gone to 
the ANC, leaving the National Party 
with no important security portfolio, 
although Mr Mandela has said he is 
prepared to amend the cabinet list after 
consultation with Mr De Klerk. 

Man In the news, Page 9 


Newly-formed regions prepare to flex their muscles 

Mark Snzman predicts tussles for power with the national government as regional administrations try to assert themselves 


might swing the balance the 


Estate agents are warning that 
house (Vices in Cape Town are 
about to rocket. The reason? 
The National party scored its 
oue election triumph in the 
Western Cape and the view is 
that whites fleeing black rule 
elsewhere will boost the 
region's property sector. 

Such a response is one indi- 
cation of the way the country's 
new regional structures might 
affect the shape of national pol- 
icy. 

The nine new regional par- 
liaments, which sit for the first 
time today, mark as big a 
change from the past as the 
new national order. They 
replace four old provinces - 
the former Afrikaner republics 
and British colonies which 
became the Union of South 
Africa. . 

Now, the new regions are 


striving to create a distinctive 
identity while portraying 
themselves as dynamic, stable 
growth spots that are well posi- 
tioned to attract foreign invest- 
ment and government 
resources. 

This is where the Western 
Cape, under the premiership of 
Mr Hemus Eriel, is likely to 
try to flex its muscles. The 
National party will be hoping 
to make the Cape - one of two 
regions without a black Afri- 
can majority - a showcase of 
economic growth and stability. 

The region has a diverse eco- 
nomic base and strong growth 
potential in its big industries 
of agriculture and tourism. 
Cape Town’s proposed facelift 
in preparation for a bid to 
become South Africa’s candi- 
date for the 2004 Olympics will 
also strengthen its hand, 


although a housing shortage 
and infrastructural problems 
may restrain real growth. 

But as the regions prepare 
for a new era, it is unclear just 
how much power they will 
have. 

In four years of tortuous 
negotiations loading to all-race 
elections, the most contentious 
issue was federalism. The final 
constitution allowed each 
region significant powers 
including authority over 

hafllth, PriucflHnn nnri Hmftad 

tax-raising powers. 

The central government 
reserves the right to intervene 
on almost any issue - but the 
terms are vague. Its rights will 
almost certainly be tested in 
the new constitutional court 
Although final power resides 
in the national assembly, some 
strong local governments 


other way. 

In the likely tussles between 
central and regional govern- 
ment, it is possible that Mr 
Kxiel and Mr Frank Mdlalose, 
the inkatha Freedom party pre- 
mier of KwaZulu/Natal - the 
only other province without an 
ANC majority - might find an 
unlikely ally in Mr Tokyo Sex- 
wale. Mr Sexwale is the charis- 
matic ANC leader of the region 
of Pretoria-Wtwatersrand-Ver- 
eenigfng. 

Mr Sexwale, a former guer- 
rilla leader who enjoys wide- 
spread support among the radi- 
cal youth, will assume control 
over the wealthiest and most 
densely populated of the nine 
provinces. Containing the 
cities of Pretoria and Johan- 
nesburg and a string of other 
industrial towns, the region 


generates about 39 per cent of 
South Africa's gross domestic 
produet and an even larger 
proportion of its tax 
base. 

The province fears being 
treated as the country’s milch 
cow to fund development pro- 
jects in other regions. Mr Sex- 
wale has only a slim majority 
in the regional assembly and 
he may feel compelled to resist 
government attempts to take 
funds from the region in 
fovour of addressing local 
needs. 

He has acknowledged that 
central government should 
exercise “critical powers", but 
Mr Sexwale has also indicated 
a willingness to protect local 
interests if necessary - a stand 
that the ANC’s national leader- 
ship would find difficult to 
overrule. 


Mr Patrick ’Terror” Lekota, 
the articulate ANC premier of 
the Orange Free State, is likely 
to test the limits of his power, 
and he will be hoping to use 
the post as a vehicle to higher 
office. 

The desperately poor Eastern 
Cape is also a potential source 
of friction. As the former home 
region of both Mr Nelson 
Mandela and Mr Thabo Mbeki 
it will be expecting tangible 
rewards for its position in the 
forefront of the struggle 
against apartheid. If they are 
not forthcoming, regional 
leader Mr Raymond Mhlaba 
will have a hard task joggling 
his local and national responsi- 
bilities. 

The other regions are 
unlikely to spring any sur- 
prises. In the poor provinces of 
the north-west, the Northern 


Transvaal, and the Eastern 
Transvaal, the ANC has an 
overwhelming majority and 
local leadership will cheerfully 
submit to national policy in 
the hope of gaining develop- 
ment aid. 

But an outstanding problem 
for the regions is that none of 
their borders has yet been fina- 
lised. There is even speculation 
that Eastern Cape may be 
divided in two. In the sparsely 
populated Northern Cape, the 
ANC has narrowly failed to 
secure a majorty, gaining 50 
per cent of the vote. 

Outs tanding disputes, which 
will be adjudicated over the 
next few months, will be fur- 
ther complicated by the pro- 
posed negotiations for an unde- 
fined white homeland that 
could include portions of sev- 
eral regions. 


Clinton 
sued oyer 
Arkansas 
sex claim 

By Jurek Martin in Washington 

President Bill Clinton was 
yesterday sued for damages by 
a former Arkansas state 
employee who alleged that 
three years ago tomorrow he 
pressed her to engage in sexual 
relations. 

The suit by Ms Paula Corbin 
Jones, now 29, seeks an apol- 
ogy and $750,000 (£514,000) in 
damages from Mr Clinton and 
from an Arkansas state trooper 
who, she alleges, summoned 
her to the then governor’s 
hotel room in Little Rock. 

The civil action against an 
incumbent president, filed in 
federal court In the Arkansas 
capital on the day before the 
statute or limitations expired, 
appears without precedent in 
American history. It was not 
clear when the case would 
come to trial. 

Mr Robert Bennett, the 
Washington “superlawyer” 
hired by Mr Clinton for the 
defence, dismissed the charges 
os "tabloid trash with a legal 
caption on it”. Againing affirm- 
ing his client's innocence, he 
said. "This is about money and 
book contracts, and radio and 
television appearances, as will 
become very clear before this 
litigation is over.” 

Ms Jones's motives were 
questioned in an Arkansas TV 
interview by her older sister, 
Charlotte Brown, who reported 
that Ms Jones had told her ear- 
lier this year, before she first 
went public with her charges 
that "whichever way it went, it 
smelled money.” 

It is difficult to ascertain 
how much the suit may harm 
Mr Clinton. There is a high 
level of public sensitivity to 
accusations of sexual harass- 
ment, especially since the 
Anita Hill accusations against 
Judge Clarence Thomas. 

Even women's groups suspi- 
cious of the Jones case have 
felt obliged to be critical of a 
president whose promiscuous 
tendencies are widely believed. 

But some of Mr Clinton's 
fiercest critics have distanced 
themselves from the conserva- 
tive pack. Two columnists - 
William Safire of the New York 
Times and Paul Gigot of the 
Wall Street Journal - were sus- 
picious of the suit and said Mr 
Clinton must be “presumed 
innocent". 

Mr Safire wrote: “I mistrust 
sudden memories and late hits 
and lucrative victimhood." 

China tries 
to reassure 
nervous 
Hong Kong 

By Simon Hdberton 
In Hong Kong 

Mr Lu Ping, China’s top official 
in charge of Hong Kong affairs, 
yesterday sought to reassure 
the colony that it would not be 
overrun when Chinese sover- 
eignty is resumed in 1997. 

Mr Lu delivered a stem 
warning to Hong Kong about 
involving itself in China's 
political affairs, and told the 
colony to concentrate on its 
role as a bridge between China 
and the world. 

Mr Lu, on his first visit to 
Hong Kong since January 1992, 
stressed the “one country, two 
systems” concept formulated 
by Deng Xiaoping, China's 
senior leader, more than a 
decade ago which 
provides for the maintenance 
of Hong Kong’s way of life 
for 50 years after China's 
resumption of sovereignty in 
1997. 

Mr Lu’s comments appeared 
to be directed towards his 
Communist party colleagues as 
much as Hong Kong and inter- 
national opinion. The New 
China news agency, China's 
unofficial embassy in the col- 
ony, has been associated with 
a tougher line on Hong Kong, 
advocating that because politi- 
cal talks with Britain had col- 
lapsed all previous agreements 
with the UK could be over- 
turned. 

Mr Lu emphasised that Hong 
Kong under Chinese sover- 
eignty would be ruled accord- 
ing to the law. He said the 
Basic Law for Hong Kong 
would be obeyed to the letter. 

The central government 
would also closely regulate the 
activities of mainland entities 
in Hong Kong. "No department 
or province will be allowed to 
interfere in the Internal affairs 
of Hong Kong and this should 
be made known to everybody, 
starting from now,* he said. 

Mr Lu also had some tough 
words for the “handful” who 
thought they could turn Hong 
Kong into a “political city” in 
order to influence politics on 
the mainland. This would be 
disastrous for Hong Kong, he 
said. 








FINANCIAL TIMES WEEKEND MAY 7/ MAY 8 1994 ^ 


NEWS: UK 


Societies consider loyalty bonuses for savers 


By Alison Smith 


Building society severs could be 
given loyalty bonuses or a share 
of the profits under schemes being 
considered by some of the larger 
societies. 

The would be to underline to 
memb ers their ownership of the soci- 
ety and the advantages of mutuality, 
encouraging them to look on their 
membership as a continuing benefit 


rather than an asset which they 
should sell for a one-off payment 

Such schemes might have the 
added benefit for societies erf attract- 
ing retail deposits.. Societies have 
suffered a net outflow of retail 
deposits in each of the last 
five months for which figures are 
available. 

Since Lloyds Bank's £1.8bn offer 
for Cheltenham & Gloucester build- 
ing society last month, societies 


have become more conscious that 
their members might want to 
“unlock” some of the value of their 
ownership. C&G members will 
receive cash payments of up to 
£10,000 each If the deal goes ahead. 

The schemes being considered Call 
into two forms. One would involve 
handing a share of profits to mem- 
bers as a “dividend”. The other 
would give savers a bonus after, for 
example, five or 10 years. 


Among the traditional arguments 
in favour of mutuality has been that 
societies are able to offer more com- 
petitive rates to both saving and bor- 
rowing members than banks are 
able to do, because they do not have 
to divert any income to pay divi- 
dends to shareholders. 

Some of the more innovative soci- 
eties, however, now believe that 
they should seek to provide benefits 
with a higher profile. 


The sector as a whole is better- 
placed to consider payouts than it 
has been in recent years. The 1993 
results for 19 of the 20 largest societ- 
ies show an average increase in pre- 
tax profits of 53 per cent over 1992, 

and a Call of 18 per cent in provisions 

for bad debts. 

Schemes are being considered both, 
by societies that are determined to 
remain independent mutual institu- 
tions, and by those that would be 


ready to convert to pic status, but 
which do not wish to come under 
pressure from their members to do 
so immediately. 

The Building Societies Commis- 
sion, the sector’s statutory regulator, 
said yesterday that there was no leg- 
islation preventing societies from 
paying out cash to their members. 


Merger split. Weekend, Page HI 
C&G’s halt. Weekend. Page V 


Disabled 
bill sets 
off MPs’ 
protests 


By James Bfitz 


Tunnel marks 
historic step 
for old rivals 


The government yesterday 
came under fire from Its own 
backbenchers for using delay- 
ing tactics in the Commons to 
kill a private member's bill 
that would mid discrimination 
against disabled people in the 
workplace. 

Tory and Labour MPs 
accused ministers of orchestra- 
ting a series of amendments 
which ensured that legislation 
proposed by Mr Roger Berry, 
Labour MP for Kingswood, 
was abandoned before con- 
cluding its report stage. 

Mr Nicholas Scott, the social 
security minister, assured MPs 
that tbe government would 
branch a consultation process 
which would seek to combat 
discrimination against disa- 
bled people at work. 

But his announcement failed 
to appease Tory backbenchers, 
such as Mr Alan Howarth, a 
former Conservative education 
minister. “There are 6m disa- 
bled people in this country 
and they and their families 
will deeply resent attempts to 
scupper this bill,” he told the 
Commons. 

Mr Scott told MPs that the 
government’s principal con- 
cern was that the legislation 
would impose significant costs 
on businesses, forcing them to 
provide goods, services and 
access to public places. 

He claimed that the mea- 
sures would cost industry up 
to £17bn, with annual running 
costs of about £lbn a year. 


By John Ridding in Coquettes 
and diaries Batchelor hi 
Folkestone 


Britain and France took a 
historic step closer to each 
other yesterday when the 
Queen and President Francois 
Mitterrand officially opened 
the Channel tunnel, the ElObn 
project which forms the first 
man-made link between the 
two nations. 

Two hundred years of on-off 
plans and seven years of tough 
and often dangerous tunnelling 
came to an end with a cere- 
mony at the tunnel’s Calais 
terminal following a trip from 
London through the 32-mile 
tunnel by the Queen. 

The two heads of state pro- 
nounced the tunnel open by 
cutting a ribbon of Calais lace 
stretched between two high 
speed trains which had carried 
them to (he Eurotunnel termi- 
nal on the French coast 

In Paris, President Mitter- 
rand set off for the ceremonies 
after inaugurating a new rail 
terminal at Gdre du Nord sta- 
tion. 

He and prime minister 
Edouard Baliadur left the 
French capital on a high-speed 
train bedecked with French 
and British flags to join the 
Queen at Calais. 

The French president, the 
son of a railway stationmaster, 
said in a newspaper Interview 
that the tunnel helped “anchor 
the construction of Europe”, 


bringing it forward “more than 
any speeches”. 

President Mitterrand said he 
felt "very emotional and proud. 
After two centuries of dreams, 
today is the conclusion." 

He said the tunnel was one 
of the century’s most presti- 
gious endeavours. The opening 
of the rail link, he said, would 
strengthen the European 
Union and the creation of a 
single market 

President Mitterrand praised 
Lady Thatcher for her part in 
sanctioning the building of the 
tunnel when she was prime 
minister. Lady Thatcher, sit- 
ting in the front row among 
hundreds of dignitaries, smiled 
as President Mitterrand singled 
her out 

In Britain the day began 
with the official opening by the 
Queen or the Waterloo Interna- 
tional Te rminal 

The 500m Eurostar train car- 
rying tbe royal party, Mr John 
Major and government minis- 
ters and rail officials increased 
its speed as it swooped into the 
tunnel at Folkestone. 

Apart from the darkened 
tunnel walls flashing past at 
up to lOOmph, the 30-minute 
journey through the tunnel 
itself was maxkad only by a 
slight increase in noise from 
the air conditioning system. 

On arrival at the Calais ter- 
minal, the Eurostar train 
nosed up to its counterpart 
which told brought President 
Mitterrand and French dignl- 


At Gieves & Hawkes, 
even when 

the clothes are casual, 
the service is not. 



Sports jackets from £295. 
Trousers from £95. Polo shirts from £45. 
Knitwear from £59. 



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London: No.l Savile Row Wl. 

18 Lime Street EC3, Self ridges Oxford Street Wl. 
Bath, Cheltenham, Chester, Edinburgh, 
Portsmouth. Winchester, 





Fellow travellers: Lady Thatcher greets Lord Howe. John Gummer, Michael Howard and John Major at yesterday’s Waterloo ceremony 


taries from Paris. A French 
military band struck up before 
the ribbon cutting. 

The Queen, noting that yes- 
terday was the first time that 
British and French heads of 
state had met without travel- 
ling by boat or aircraft, said 
the tunnel demonstrated the 
strength of relations between 
the two countries. 

Speaking in French to an 
audience of more than 1,000 
guests into a Marquee on the 
te rminal, the Queen referred to 
the “violent fluctuations" in 
Anglo-French relations 
through the ages. But the tun- 
nel, she said;' was an example 


of “a s uccessf ul co mbinatio n of 
French dlan and British prag- 
matism'*. 

She congratulated the engi- 
neers and entrepreneurs who 
had built it, saying that they 
had “rejoined what nature had 
separated for some 40m years”. 

After lunch, the Queen trav- 
elled back through the tunnel 
on board Le Shuttle, one of the 
trains which anil carry cars 
between Paris and London in 
three hours. She was joined in 
her Rolls Royce Phantom VI by 
the French president. 

At Folkestone, Eurotunnel 
co-chairman Sir Alastair Mor- 
ton told the two heads of state: 


“It Is my proud honour and 
privilege to confirm that the 
nvinnwai tunnel Is built and 
ready for service. 

“In a year or two the journey 
you have both just made will 
be an everyday experience for 
milli ons of people.” 

But Sir Alastair said people 
must not forget the 10 workers 
who died building the project 

Mr Denis Filer, president of 
the Engineering Council said: 
“Our congratulations go to the 
engineers of all disciplines who 
have accomplished what must 
be rated as one of the world's 
greatest engineering achieve- 
ments. It is a : proud day 


Hitch in economic 
recovery forecast 


Company failures 
reduced by 3% 


By Gillian Tett 


Hints that the economic 
recovery may falter towards 
the end of the year came yes- 
terday with the publication of 
Central Statistical Office fig- 
ures showing a feU in its eco- 
nomic cyclical indicators. 

The shorter leading index, 
which predicts economic turn- 
ing points about five months in 
advance, fell for the third 
month in a row after rising 
continuously in 1993. The CSO 
said the fall was caused by a 
drop in share prices and weak 
results from a recent consumer 
confidence survey. 

The index, calculated from a 
basket of economic indicators 
including consumer credit fig- 
ures, registrations of new cars, 
share prices and business sur- 
veys, has proved only partially 
accurate in the past But yes- 


terday’s figures were consist- 
ent with trends in the other 
CSO indices. 

The longer leading index, 
which attempts to predict turn- 
ing points 13 months in 
advance, fell for the third 
month in a row after remain- 
ing broadly flat in the second 
half of last year. 

The main reason for tbe feU 
was a decline in business opti- 
mism found by the Confedera- 
tion of British Industry’s April 
survey, the CSO said. The lon- 
ger leading index is compiled 
from economic indicators 
which Include interest rate lev- 
els, housing figures, yield 
curves and financial deficit fig- 
ures. 

The coincident Index, which 
measures current turning 
points, also fell fractionally in 
March after rising steadily dur- 
ing tbe previous 18 months. 


By Andrew Jack 


Fewer companies foundered in 
the first quarter of this year, 
providing an indication that 
the economy is emerging from 
recession, official figures 
showed yesterday. 

Seasonally adjusted figures 
for failures in England and 
Wales were down 3 per cent to 
4£13 for the three months to 
the end of March compared 
with 4,634 in the last three 
months of last year. 

The figures, prepared for the 
British Chambers of Commerce 
by the government -statistical 
service, were down 22 per cent 
on the same quarter of 1983. 

Mr Richard Brown, deputy 
director-general of the cham- 
bers. said the figures were “an 
indication that we are heading 
in the right direction". 

There were 2L2 per cent of 


Tax rises 
depress 
sales of 


UK NEW CAR REGISTRATIONS 


Apr! 1894 
Change 54 


Apr* S3 
Share* Share*. 


January-*!** 19B* 

Volume Change* Share*. 


Jan-Apr* fl 
ShmH 


Total market 
UK produced 
imports 

Japanese makes 


142,009 

81,526 

80.483 

73,387 


loan loan 671,446 

403 403 291,393 

58.7 53.7 380,052 

12.9 14.3 76,399 


Foid group 
- Ford 


new cars 


By Kevin Done, 

Motor Industry Correspondent 


Registrations of new cars in 
the UK rose by 4J3 per cent In 
April, the smallest year-on- 
year increase this year, as the 
recovery in new car demand 
faltered under the impact of 
recent tax increases. 

Sales of new cars in April 
rose to 142,009 from 135,469 in 
the same month a year ago, 
figures from the Society of 
Motor Manufacturers and 
Traders showed yesterday. 

In the first four months of 
the year registrations of new 
cars, at 671,445, ware 14J. per 
cent higher than a year before. 

“The April tax increases 
have clearly slowed the rate of 
market recovery," said Mr 
Ernie Thompson. SMMT chief 
executive. 

Sales of new cars in the full 
year, however, were still on 
course for an increase of at 
least 7 per cent to more than 
LSm, Mr Thompson said. 

Ford, the leader of the UK 
market for new cars, has 
recently revised upwards its 
sties forecast for the full year 


General Motors 

- Vauxhall 

- Saab* 

BMW group 

- BMW 

- Rover* 
Peugeot group 


- Citroen 

Volkswagen group 

- Volkswagen 

- Audi 

- SEAT 

- Skoderf 
Renault 


Toyota 
Fiat group 

- Rat 

- Alfa Romeo 

- Lancia 

Volvo 

Morced*e43enz 

Honda 

Mazda 


tvw hams !m oJ Skoda ana has marao 


Aounsa SoehQmf MW UnAtne mid ftadWa 


to LS5m. It said the slowdown 
in the rate of growth in April 
was “partially doe to the fax 
increases" but it was leaving 
its forecast for the whole of 
1994 unchanged. 

The recovery slowed in April 
chiefly in the retail sector of 
the market, including small 
businesses, with registrations 
rising by only 2 per cent 


Sales to fleets (operators of 
25 or more cars) rose by 8-1 per 
cent year-on-year in April and 
accounted for 4fL2 per cent of 
the total market In the first 
four months fleet sales rose 
16J9 per cent year-on-year com- 
pared with an increase of HR 
per cent in retail sales. Fleet 
sales accounted for 44.6 per 
cent of the total market com- 


pared with 43.5 per cent a year 
before. 

Imported cars, taking an 
increasing share of the UK 
market, captured 56.7 per cent 
of new-car sales in April com- 
pared with 53.7 per cent a year 
before. French carmakers Ren- 
ault and the PSA Peugeot 
Citroen group both performed 
strongly last month. 


Regulator 
turns up 
heat in 


gas row 


Ofgas, the gas Industry 
regulator, will next week cany 
out Its threat to publish a con- 
troversial consultation docu- 
ment on competition in the 
industry if the government 
continues to delay its publica- 
tion, Robert Corzine writes. 

Ofgas yesterday said it saw 
no reason to delay publication 
any further. Ms Clare Spottfe. 
woode, Ofgas director general, 
could reach a point next week 
where she would release the 
repent “regardless of the politi- 
cians”. 

The document, which sets 
out in detail how the domestic 
gas market will be open to 
competition beginning in 1996, 
is awaiting approval by Mr 
John Major, the prime minis- 
ter. The proposals have proved 
politically sensitive because of 
fears that deregulation would 
lead to wide price variations, 
with possible increases for con- 
sumers who use relatively 
small amounts of gas. 

Last month Ms Spottis- 
woode, who helped to write the 
report, threatened to publish it 
unilaterally if the government 
foiled to do so by yesterday. 

Earlier this week Ofgas and 
the government agreed on a 
compromise date of May 9. But 
yesterday it appeared that the 
government would miss the 
Monday deadline. 


Miners receive 
payout ultimatum 


for British engineering." 

Yesterday’s official opening 
marks the end of seven years 
construction, following the 
signing of the Channel tunnel 
treaty In 1987. The costs of the 
project have risen to double 
the original estimates. 

The tunnel system was today 
once again closed to the public 
and returned to a ritual of test- 
ing for a start up date for ser- 
vices which has yet to be 
decided. Freight trains may 
start using the tunnel as early 
as next week if safety clear- 
ance Is obtained but passenger 
services will probably have to 
wait until July. 


active companies which 
became insolvent in the 12 
months to March this year 
against 23 per cent in the year 
ending three months earlier. 

Separate statistics yesterday 
from the government’s 
Insolvency Service showed 
that the total number of com- 
pany insolvencies in En g la nd 
and Wales last year was 20,825, 
down from a record 24,425 in 
1992. 

This Included 8,361 compul- 
sory liquidations, 12,464 credi- 
tors’ voluntary liquidations, 
5,362 receiverships, 2962 mem- 
bers’ voluntary liquidations, 
134 voluntary arrangements 
and 112 administrator appoint- 
ments. 

In Scotland there ware 551 
company insolvencies includ- 
ing 286 compulsory liquida- 
. tions and 265 creditors’ volun- 
tary liquidations. 


British Coal yesterday gave its 
10,000 miners an ultimatum to 
accept a new deal on working 
conditions and redundancy 
arrangements within the next 
two weeks, or risk losing a 
£6,000 sweetener. 

The lump sum is for agree- 
ing to flexible conditions 
including weekend work and 
extending the maximum ros- 
tered shift from TA to 12 hours. 
It would also build redundancy 
payments of up to £27,000 into 
employment contracts. 

If miners do not accept toe 
deal by May 20 they will lose 
the offer and be eligible only 
for maximum redundancy pay- 
outs of £6,150, British Coal said 
yesterday, ir the deal is 
accepted, the redundancy 
terms would be valid until 1998 
for private companies which 
are set to buy British Coal 

Mr Kevan Hunt, British 
Coal’s employee relations 
director, said: “Everyone must 
understand this is not only the 
best offer in town, it’s toe only 
offer." 

• British Coal has reduced 
the price of household coal by 
85 per cent in a summer cam- 
paign to boost sales and help 
offset the effects of value added 
tax on fuel, the company said 
yesterday. 


Teachers hostile 
to sex guidelines 


152233 

+13.7 

22.7 

228 

149,686 

+13.6 

2JL3 

22.4 

2,567 

+19.6 

0.4 

0.4 

119,661 

+19.1 

17.8 

17.1 

116,160 

+19.5 

17.3 

105 

3,501 

+7 JO 

05 

06 

99,318 

+10.0 

148 

103 

1U432 

+183 

25 

2.4 

82,886 

+a.a 

12.3 

109 

B4/M7 

+122 

12 JS 

12.7 

51,558 

+03 

7.7 

8.1 

32,459 

+19.0 

49 

4.6 

43£98 

+324 

6j5 

06 

26286 

+18.1 

3.9 

35 

8,385 

+21.1 

1.3 

1.2 

4.331 

+S4A 

0.7 

04 

4.096 

+302.4 

O.B 

0.2 

36,826 

+19.2 

5.8 

5£ 

30.247 

+7-8 

4.5 

48 

17,530 

-4.8 

2.6 

3.1 

17,529 

+345 

2.6 

22 

16,908 

+40.0 

2.5 

21 

546 

-28.5 

at 

0.1 

75 

-aao 

0.0 

0.0 

14,166 

+O.S 

2.1 

24 

10.961 

+52.9 

1.6 

12 

10,864 

+123 

1.8 

1,6 

6,449 

wartMcovay. 

+5J3 

1.0 

1.0 


Instructions from Mr John Pat- 
ten, the education secretary, to 
set sex education in a “clear 
framework of values" met a 
hostile response from teachers 
yesterday. 

Tbe guidelines say that giv- 
ing an under-age pupil advice 
on contraception without 
parental knowledge or consent 
would be inappropriate, even if 
this is against the wishes erf 
the child. 

All state-maintained, schools 
In England and Wales will be 
required to publish their for- 
mal policy on sex education; in 
tine with Mr Patten’s guide- 
lines, by September this year. 

Teachers are alarmed that 
they could fece prosecution if 
they give advice on contracep- 
tion to pupils aged under 16. 

Mr David Hart, general sec- 
retary of the National Associa- 
tion of Head Teachers, said: “ft 
is difficult to see how this guid- 
ance document will make a sig- 
nificant contribution to the 
government’s policy of reduc- 
ing the number of teenage 
pregnancies by 50 per cent by 
the year 2000." 


Equitable Life in 
£ 60 m office deal 


The Equitable life Assurance 
Society has bought an office 
building in Reading for £60m. 

The 147,000 sq ft building at 
121 King's Road is let to Pru- 
dential, the insurance com- 
pany. It has been sold by OIL 
Property Investment, the UK 
property arm of German Hypo 
Bank, which bought it for 
about £45m in March 1993. 


Post office strike 


Main post offices around Lon- 
don will be hit by a second 
one-day strike next Wednes- 
day. The UCW communication 
workers’ union said yesterday 
that about 2,000 staff would 
stage a second protest against 
the closure programme, which 
has seen London lose almost 
half its purpose-built po« 
offices in the past five years. 




r ’ i ; 

> ,r " 


Ifstflltlc 1 - 

lector) t » 5 

jgo to uni* 

iinessi’s tut 







FINANCIAL TIMES WEEKEND MAY 7/MAY 8 1994 


NEWS: UK 


5 





Miners recent 
|i;s> tm\ ultimas 




i i liv?" Il* 1 ' 11 - 


- . .. -Iii^ 5 'V 




Treasury 
veto sinks 
‘charterline’ 


By John Wfliman, 

Public Policy Editor 

The government has scrapped 
plans for a national telephone 
helpline on the public services 
after the Treasury vetoed cash 
for advertising. 

The “ charterline" was meant 
to give callers information 
about the Citizen’s Charter and 
tell them who to contact to 
And out more about particular 
services. 

It also offered advice on how 
to complain about a wide range 
of local and national services 
including government depart- 
ments, health service organisa- 
tions, local authorities and 
utilities. 

Hie service is to be aban- 
doned, however, after incur- 
ring costs of more than £70 a 
call during a 10-month pilot 
study in three Midlands coun- 
ties. Demand in the pilot area 
averaged 25 caffs a day, con- 
pared with forecasts of 30,000 a 
month. 

Mr William Waldegrave, pub- 
lic service minister, has 
rejected a recommendation 
from consultants who reported 
on the pilot to extend the ser- 
vice nationally. There would 
be m inimal additional set-up 
costs, since “charterline” could 
already handle the calls expec- 
ted from the whole country at 
the current low level of usage. 

In a rhang a of fan*, the Cabi- 
net Office is asking publishers 
of directories distributed to 
homes in the UK to include 
info rmatio n about the Citizen's 


Charter and contact details for 
individual services. 

Thomson Directories, which 
distributes 135 directories con- 
taining telephone numbers and 
other local information, will 

in^Inrto details of gnpp romunt 

agency helplines for organisa- 
tions such as the Benefits 
Agency anri the health service. 

Talks are under way with BT 

alviiit irwhi/iing similar infor- 
mation in its telephone directo- 
ries. The new postcodes direc- 
tories planned by Royal Mail 
will include details of public 
services and local helplines. 

A poll carried out for the 
Cabinet Office last year found 
that 92 par cent of those asked 
wanted a telephone helpline to 
be introduced. A survey of 
users in the pilot area found 
that .85 per cent of callers 
approved of the service and 86 
per cent used the information 
they were given. 

But an evaluation of the 
pilot by consultants from Price 
Waterhouse, the accountants, 
found that awareness of the 
charterline was low. 

The service was publicised 
only through posters, leaflets 
and local' radio. Plans to use 
television advertising were 
shelved. 

Rising call volumes would 
make the service cost-effective, 
according to thp consultants. 
However, the Treasury balked 
at spending more on advertis- 
ing at a Hmft of cuts in public 
expenditure. Charter line has 
incurred set-up costs of £L3m 
and running costs of ci im 


Postcode 
directory 
to go to 
businesses 

By John WUman 

A bulky new directory is soon 
to join BTs phone books. Yel- 
low Pages, Thomson’s directo- 
ries and trade association year 
books on business book- 
shelves. 

Royal Mail, the tetters divi- 
sion of the Post Office, plans 
to distribute free postcode 
directories to 2m businesses in 
the UK. 

Regional Postal Address 
Books will list the correct 
postal address and postcode 
for business and residential 
addresses in each of 11 
regions. Hie directory win not 
include the names of house- 
holders, but will list business 
names of offices, factories, 
shops and banks. 

Us purpose is to improve the 
use of postcodes in business 
mailings to speed up sorting 
and distribution. A quarter of 
all mail Is currently incor- 
rectly addressed, with govern- 
ment departments and local 
authorities more likely than 
average to omit the correct 
postcode. 

The directories will be 
financed by advertising reve- 
nue and sales of other regional 
volumes where required. They 
may eventually be distributed 
more widely to homes, accord- 
ing to Mr Peter Haworth, man- 
aging director of Royal Mail. 

Distribution is due to begin 
in September and will be com- 
pleted by March next year. 


Lawyer 
to probe 
union 
ballot 

By Richard Donkin, 

Labour Staff 

The CPSA civil servants 1 union 
is to appoint an independent 
lawyer to investigate balloting 
irregularities that have forced 
a £100,000 repeat of its presi- 
dential election. 

A re-run of the vote among 
the union's 131,000 members 
was ordered by the High Court 
when Mr Alan England, a 
defence ministry branch offi- 
cial in Harrogate, challenged 
his omission from the list of 
rftnriiriatPR in the ballot. 

Mr England discovered that 
his name had been obliterated 
with typewriter correction 
fluid from presidential nomina- 
tion forms. 

The CPSA leadership said 
yesterday It was concerned 
about the circumstances in 
which Mr England, who had 
been a member of the 
union for five months, 
had earlier sought executive 
office in the NUCPS 
higher-grade civil servants’ 
union. Membership of more 
than one union is allowed 
under recent employment 
legislation. 

Both unions said Mr England 
had described himself in an 
NUCPS national executive bal- 
lot as a member of a black 
racial group. The union's rules 
allow for the election of black 
members with a much lower 
number of votes than those for 
Other Candida tfw 


Customs warns 
on data access 


By John Mason, 

Law Courts Correspondent 

Prosecuting agencies must be 
given increased access to 
highly sensitive documents 
held by other government 
departments, Mr Sandy Rus- 
sell deputy chairman of Cus- 
toms & Excise, warned yester- 
day. 

Giving evidence to the Scott 
inquiry into sales of defence 
equipment to Iraq, Mr Russell 
said the Matrix Churchill trial 
had been a catalyst for improv- 
ing the ability of investigators 
to see such material. However, 
he warned that the nature of 
the "government machine" 
meant further efforts to 
improve access were still 
urgently required. 

Mr Russell said retrieving 
documents for the Matrix 
Churchill trial from different 
government departments had 
proved immensely difficult. 
Even investigators with secu- 
rity clearance to read sensitive 
documents found the rules on 
access very tight. He agreed 


with Lord Justice Scott that 
Customs needed good access to 
sensitive papers to prevent 
breaches of the law and to 
enable both prosecutors and 
defendants to present their 
cases property. 

Earlier, Mr Russell told the 
inquiry how Customs had been 
reluctant to abandon its prose- 
cutions of two businessmen 
over the “supergun” affair 
when UK engineering firms 
made parts of a large gun des- 
tined for Iraq. 

Although lawyers had 
advised that the prosecution 
would probably be rejected by 
a Jury, Customs officials 
sought further clarification 
from Sir Patrick May hew, then 
attorney-general. Customs felt 
that failure to prosecute would 
be a heavy blow to effective 
enforcement of export regula- 
tions while the “supergun" 
affair had also caused consider- 
able public concern. 

The prosecution was aban- 
doned only after Sir Patrick 
told Customs its evidence was 
clearly inadequate, he said. 


Curbs on 
night 
flights 
attacked 

By Jenny Luesby 

Night flying restrictions for 
London aimed at reducing 
noise levels while allowing 
more flights were annnnnrfld 
yesterday by Mr John 
MacGregor, transport 
secretary. 

Mr MacGregor said in a 
written Commons answer that 
quotas on noise levels together 
with higher limits on the 
number of nigh* flights — as 
proposed last November - 
would apply for four years 
from October 24. 

Anti-noise campaigners 
reacted angrily to the news, 
with Mr John Boulton of the 
Heathrow Association for the 
Containment of Air Noise 
(Hafffln) describing the limits 
as “disastrous". 

“The sleep of up to 1m 
people in west London is being 
disturbed night after night, 
and yet the government just 
steamrolls through with this 
bad news,” he said. 

The government’s initial 
proposal to abandon limits on 
the number of take-offs and 
landings at Gatwick and 
Heathrow in favour of noise 


Merged 

chamber 

appoints 

chief 



A Boeing 747 soars ova* west London rooftops as it leaves Heathrow. New limits on noise and numbers will start in November 


quotas was overturned by the 
High Court. The court ruled 
that the noise quota was 
outside Mr MacGregor’s 
powers under the 1982 Civil 
Aviation Act to curb noise. 

The noise quota was based 
on a points system, but the 
government judged some 
aircraft so quiet that they 
could not be counted. Five 
councils in Surrey. Berkshire 
and f/mdnn argued in the High 


Court that this could mean a 
rise in night flights from 5.750 
a year to some 24,000. 

The government responded 
to the High Court ruling by 
reintroducing a limi t on the 
number of flights. It also 
reclassified aircraft so that 
even the quietest would count 
as 0.5 of a point towards the 
parallel noise quota. 

The transport department 
yesterday described the new 


system as “providing a double 
safeguard for residents while 
also acting as an incentive to 
airlines to use quieter 
aircraft". 

In an effort to satisfy 
airlines’ demands for extra 
capacity, the government has 
also reduced the hours of night 
restrictions by 30 minutes so 
that they will run from 2330 
until 0600. 

It has also raised the noise 


quotas for Gatwick and 
Stans ted and has boosted flight 
limits at Heathrow and 
Gatwick from their 1993 levels. 
Ail of these changes, confirmed 
yesterday, were proposed in 
November. 

Airlines have since lobbied 
for further rises in the limits 
and quotas and were yesterday 
disappointed at the 
government's decision to stick 
with last year's proposals. 


By Chris Tlgho 

A manufacturer specialising in 
cabie communications was 
named yesterday os the chief 
executive designate of the new 
North East Chamber of Com- 
merce. Merger of the Tyne and 
Wear, Teesside and TVnedale 
chambers has created one of 
the five largest chambers in 
the UK 

Mr Bill Bates, selected for 
the £50,000-a-year post from 
more than 100 applicants, is 
managing director of Teesside- 
based Integral, the European 
arm of the American -owned 
South Wire Company. 

Mr Bates said yesterday he 
wanted the chamber to give 
north-east England's business 
community an authoritative 
voice in speaking to local 
authorities, central govern- 
ment and the European Union. 

He identified as recurrent 
business problems red tape and 
form filling, late payment and 
the cost of money. 

The new Chamber, to be 
headquartered in Durham City, 
will come into operation next 
January. Mr Bates will take up 
his new post by this July. 




BAT INDUSTRIES 


Extracts from the Chairman's speech 
at the 1994 Annual General Meeting 

on 6th May 


“We have made a strong start to the year, with pre-tax profit up by 
20 per cent in the first quarter. Both tobacco and financial services have 
performed encouragingly but one quarter doesn’t make a whole year. 

In particular, I should like to remind shareholders that last year’s results for 
tobacco were somewhat flattered, from the second quarter onwards, by the 
£138 million benefit to pre-tax profit from the exchange of brands. 

Moreover, although cigarette exports saw a welcome resumption of growth 
in the first quarter, we have seen, in the recent past, how these can be 
volatile, while conditions in the US domestic market remain highly 
competitive. We are unlikely to receive much benefit from the acquisition 
of American Tobacco until 1995, because of the time we expect the anti- 
trust review to take. 

In financial services, the picture looks clearer, thanks to the extent to which 
our businesses are protected from the underwriting cycle. There are clear 
signs that the sorry chapter of Eagle Star’s losses from domestic mortgage 
indemnity policies and discontinued lines of financial insurance is now 
drawing to a close but experience has taught us to be only cautiously 
.optimistic 

For the year as a whole, I expect there to be a worthwhile increase in. 
B.A.T Industries’ pre-tax profit. This continued growth, together with the 
strength of our balance sheet and our consistent ability to generate cash, 
should, once again, enable us to reward our shareholders with a significant 
real increase in the dividend." 

SIR PATRICK SHEF.HY, CHAIRMAN 


For a copy of the full speech contact B.A.T Industries p.I.c. Windsor House, 50 Victoria Street, London SW1H 0NL. 






Major 


By Kevin Brown, 

PoMcai Correspondent 

The Conservative party braced itself 
yesterday for a damaging leadership 
battle after Mr John Major wanted 
that he would fight a threatened 
challeng e from the right 
Tired bat defiant in the face of 
disas trous council results, Mr Major 
said he would he “standing there 
waiting” If dissident MPs tried to 
force him from Downing Street 
A challenge appeared almost cer- 
tain after Mr John Carlisle, the 
lightwing MP for Luton North, said 
he would “reluctantly" stand against 
Mr Major if no-one else did. 


HEW S; UK LOCAL ELECTIONS 

rightwing 


Mr Carlisle's comments - the first 
public finest to force a leadership 
election - prompted outrage in his 
constituency, where two senior offi- 
cials frnraprtiatoiy resigned. 

“If he wants to make a foci of 
himself, let him," said Mr Joe 
O’Neill, chairman of Luton North 
constituency association. “We want 
nothing to do with ft." 

However, rightwing MPs said they 
were certain that at least 34 Con- 
servative MPs - the minimum 
required - were ready to call tor a 
leadership election in the autumn. 

“Nothing is going to happen until 
after the European elections In June, 
but we have got the critical mass 


and we will force an election,” a 

leading rig ht w i nger jjaiii. 

Mr Tony Marlow. who last mo n th 
urged Mr Major to stand down, said 
the prime minis ter’s “credibility and 
authority are not going to he 
restored until there is a contest". 

Other rightwingers saw the poor 
election results as an opportunity for 
the right to iTTcroggfl its glfluffllCg 
over the prime minister, particularly 
on European issues. 

Sir George Gardiner, chairman of 
the 92 Group of rightwing M Ps, sa id 
the Conservatives would be “wiped 
off the map" in the Euro-electians if 
party support continued to slide. 

He urged Mr Major to undertake a 


“radical* reshuffle before the elec- 
tions to “cut out the dead wood" and 
increase the number of rightwingers 
in the cabinet 

Several rightwingers said there 
was “no point” in trying to di slod ge 
Mr Major because fiie only credDde 
alternative candidates - Mr Kenneth 
Clarke and Mr Michael He sri t m e - 
were on the pro-European left of the 
party. 

Mr Bernard Jenkin, the rightwing 
MP for Colchester North, said t he 
prime minister deserved the support 
of rightwingers, hut call ed for a 
more sceptical approach to Europe. 

The three ministers likely to 
orncr gB as i^wrimg candidates in any 


leadership election an rallied to the 
prime minister’s support. 

Mr B esafriae, trade and industry 
secretary, said Mr Cariiste's threat 
to against Mr Major was 

“deplorable". Mr Kenneth Clarke, 
chancellor, warned against treating 
Mr Major as a “scapegoat" - 
Mr Michael Portillo, Treasury 
flbj pf secretary, and the leading righ- 
twinger in the cabinet, said the 

primp minister had his full support. 

•q tfrmir the attitude of the par- 
liamentary party will be to row fax 
hnWnri the leader and to show the 
unity we fed and our wish that we 
shnniH be allowed to finish the job,” 
he said. 


FINAN CIAL TIMES WEEKEND MAY 7/MAY 8 1994 

Labour 
demands 
talks on 
London 


Mr Major put part of the hlame for 

the “poor" election results onto the 
rightwing MPs who have been snip- 
ing at his leadership since last year’s 
debate on the Maastricht treaty. 

Admitting that Tory voters had 
abstained because of the govern- 
ment's unpopularity, Mr Major said 
Conservative supporters were 
“distressed when they see discor- 
dancy in the party”. 

Mr Major said voters had not for- 
given the government for “the 
bruises from the recession". He said 
the increasing buoyancy of the econ- 
omy had not yet “rippled through to 
people in the high sheet and in their 
own homes • 


Scottish 
Tories in 
fourth 
place 

By James Buxton, Chris righe 
and Paul Ch e— ri gh t 

Scottish Conservatives were 
yesterday gloomily contemplat- 
ing the fact that Scottish poli- 
tics seem to afford them almost 
infinite space to drop into, 
after they finished In fourth 
place in the regional council 
ej ection s in terms of seats. 

By contrast the Scottish 
National party, In second 
place, was celebrating its best 
local election result, getting 
near the 30 per cent share of 
the vote at which it could 
make big gains in a general 
election. The Liberal Demo- 
crats in third place also 
Haimpri their greatest success. 
Labour, easily the biggest 
party, was well content 
The Scottish Conservatives 
had not entered the regional 
elections with high ambitions, 
controlling none of the nine 
regions, but they at least 
hoped to hold cm to the 52 seats 
they won in 1980. In the event, 
they lost about 20 seats. They 
performed especially badly in 
Lothian, a region they con- 
trolled in the early 1980s, los- 
ing seven seats and ending 
with only five. 

Their share of the vote 
dropped from 19 per cent to 14 
per cent, exactly mirroring a 
preelection opinion poll Yes- 
terday Mr Ian Lang, Scottish 
secretary, claimed that many 
Tory supporters had stayed at' 
home and said the party’s Scot- 
tish performance was similar 
to that in England and Wales, 
reflecting general discontent 
with the government 
The result is particularly 
painful because the party 
meets in Inverness next week 
for its annual conference, 
which closes on Friday with a 
speech by Mr John Major. 

Mr Alex S almond, SNP 
leader, yesterday called his 
party the big winner of the 
elections. It won a record 27 
per cent of the vote, doubled 
its number of seats to 73; came 
within one seat of taking con- 
trol from Labour of Tayside 
region; and became the second- 
biggest party in Grampian 
after the Liberal Democrats. 

The liberal Democrats won 
61 seats, a net gain of 20, gain- 
ing seats from all the other 
parties and taking 11 per cent 
of the vote. Mr Jim Wallace, 
leader of the Scottish Liberal 
Democrats, said the results 
were "easily the best" his 
party had had in Scotland. 

Labour lost about five seats 
but still haw more town all the 
other parties combined. It took 
42 per cent of the vote and its 
grip on Strathclyde, Lothian, 
Fife and Central regions 
remains impregnable. 

The outcome of the elections 
in northern England and the 
west Midlands, though poor tor 
the Tories, did not match the 
riisfltaw m Scotland. 

In Cumbria Labour wrested 
control from them of Barrow- 
in-Furness, and the Liberal 
Democrats won enough seats 
In South Lakeland to make 
them the biggest party on the 
council for the first time since 
its creation in 1974. 

The west Midlands saw Con- 
servative hopes thwarted in 
Birmingham, Dudley, Solihull. 
Walsall, Shrewsbury & Atcham 
and Stratford-on-Avon where 
they either felt their grip loos- 
ened or Tailed to win. Only in 
Wolverhampton was there a 
decisive move with Labour 
regaining control after a Con- 
servative-Liberal Democrat 
interregnum. 


Council leaders 
blame ministers 
for heavy losses 


By Jamos BHtz 

Defeated Tory council leaders 
yesterday cast aside their loy- 
alty to the Conservative leader- 
ship and blamed ministers for 
the party's disastrous perfor- 
mance in the local elections. 

Outgoing council leaders 
r-iaimwi fhat cabinet disunity 
had badly dented their local 
support. One said that the 
strong reputation of his coun- 
cil had been undermined by an 
“appalling” campaign from 
Conservative Central Office, 
which faflari to emphasise that 
the election should be an local 

Ijtohw 

Mr Donald Abbott, the outgo- 
ing Tory leader of Harrow 
councfl, said Mr John Major’s 
poor leadership was the princi- 
pal reason why the Tories had 
lost control of the borough for 
the first time in 21 years. 

"There Is a grave danger that 
John Major is becoming an 
electoral liability," he said. “If 
you are going to be the leader, 
you must be seen and recog- 
nised as the leader. The prime 
minister should have put an 
end to cabinet disunity, but it 
is probably too late now." 

Mr Ronnie Barden, whose 
Tory group’s toss the north 
London borough of Redbridge 
saw It pass out of Tory hands 
for the first Htw>, also eiaimgd 


that Mr Major's public image 
had been a “hindrance". But 
he blamed Mr Michael Portillo, 
the cphfriwt Tnfrristor in charge 
of fixe London campaign, for 
malrtng mistakes. 

“Michael Portillo’s original 
massage was that it was better 
for the go v e rnment to stay out 
of the London campaign," he 
said. “But then they didn’t 
stick to that message, and min- 
isters stated to get involved. 
That just wasn’t hdpfol to us.” 

Even in Brent, where Con- 
servatives retained a narrow 
hold on the council, there was 
criticism of the way Tory man- 
agers had nm the elections. 

“There simply was no cam- 
paign from Michael Portillo or 
from Central Office,” said Mr 
TasIip winters, who helped to 
mastermind the local Tory 
campaign. 

Mr Paul Cloakie, whose Tory 
group was resoundingly beaten 
by the Liberal Democrats in 
Kingston upon Thames, said 
government failure to stop 
overcrowding in schools had 
brought about his defeat 

“John Patten lost it for us in 
Kingston,” he said, accusing 
the education secretary of fall- 
ing to reverse rules which 
allow childr en from neighbour- 
ing boroughs to attend King- 
ston’s highly successful 
schools. 



Gloves oft the three main party leaders, Paddy Ashdown of the Liberal Democrats (left), John Smith of Labour (top) mid John Major 
«f tb«* Tories, yesterday fwypp to the votm* verdict in file councfi elections Photographs: Trevor Humphries 


Ashdown’s army advances outside its heartlands 


By Rotand Rudd 

If It was difficult for 
Conservative Central Office to 
dlsmlm the view of (me back- 
bencher that the government 
suffered Its “nightmare sce- 
nario” in the local elections, it 
was harder to work out who 
was the dear winner. 

Both Mr John Smith, Labour 
leader, and Mr Paddy Ash- 
down, leader of the Liberal 
Democrats, claimed that man- 
tle. Labour saw Its share of the 
vote rise to 42 pm- cent from 40 
per cent while the Liberal 
Democrats increased their vote 
from 18 par cent to 27 per cart 
The last local elections took 
place four years ago. 

Mr Smith dismissed sugges- 
tions that there had been sig- 
nificant tactical voting. “Apart 
from a bit here and bit there 
there was not much," he said. 

As the Liberal Democrats 
took control of Ea s tleigh coun- 


cil - taking two seats from 
Labour - Mr Smith’s com- 
ments on the relative absence 
of tactical voting might sug- 
gest that he should now run up 
the white flag in the Eas tleigh 
by-election. 

But the Labour- leader said 
he would do no such thing, 
promising to redouble the par- 
ty’s efforts to win the parlia- 
mentary contest 

Professor Anthony Hug, pro- 
fessor of government at the 
University of Essex, says the 
lads of tactical voting was one 
of the more interesting fea- 
tures of the elections. 

He argues that the trend in 
national and local elections 
over the past 10 years has been 
the establishment of two zones: 
Labour versus Conservative in 
the toner dries and in north- 
ern England while Liberal 
Democrats battle with Conser- 
vatives in the suburbs and 
south. 



Hie election results appear 
to confirm this trend. Outside 
London, the Liberal Demo- 
crats' share of fixe vote in the 
south was about 40 per cent 
compared with their national 
share of 27 per cent Many of 
their biggest gains , from Bath 
to St Albans, were in their 
southern stronghold. 

HOW than does one or plflln 
the result in Sheffield, where 
Labour lost eight council seats 
to tbe Liberal Democrats, or 
Bromley where the Liberal 


Democrats gained 14 seats 
while Labour lost four, asks 
Professor Ring ? 

Mr David Butler, a fellow of 
Nuffield College, Oxford, says 
the key point arising from the 
elections Is how the Liberal 
Democrats won a toehold - 
“no matter how small" - in 
almost an the councils. 

Mr Ashdown efahnw to have 
fair on on, qnd tn many signifi- 
cant areas de feat ed, “munici- 
pal socialism" in Sheffield, 
Liverpool and Southwark. 


Mr Butler believes many 
defecting Labour voters may 
return to the fold in the gen- 
eral election. 

It was perhaps the forgotten 
parliamentary by-election at 
Rotherham that und erl ines the 
argument that tactical voting 
played only a small part in the 
elections. 

Labour, which easily held 
the seat, polled its second- 
worst share of the vote in more 
than 30 years. Mr Denis Mac- 
Sbane, the Labour candidate, 
saw his majority fall by more 
than 8 percentage points from 
6341 per cent to 55.6 per cent 

In contrast the Liberal Dem- 
ocrats made significant head- 
way, pushing into second place 
with 29.7 per cent of fixe vote, 
against 12.3 per cent two years 
ago. 

Mr Ashdown’s claim to be an. 
established party of govern- 
ment and the Tnain challenger 
to both “old parties in their 


heartlands" is borne out by the 
results. In scores of councils 
fire Liberal Democrats are no 
longer the “third party", but 
one of three parties. 

Tower Hamlets appears to be 
the exception. The Liberal 
Democrats lost 22 seats, the 
biggest single defeat for any 
party in any council in 
Fjn giand Labour declared that 
they bad "trounced" their com- 
petitor in the only straight 
fight between Labour and lib- 
eral Democrats. 

But Mr Ashdown's explana- 
tion that his party has paid the 
price for "the ill-judged 
actions” of two or three of his 
activists was nearer the truth. 

Similarly, Labour’s loss of 
Lambeth had more to do with 
the behaviour of lowing coun- 
cillors expelled from the 
Labour party as the council 
was accused of more than 
£20m of unlawful expenditure 
by the district auditor. 


By John Authors 

Labour yesterday woke up to 
sweeping new opportunities to 
co-ordinate policy across 
London. 

For the first time since the 
abolition of the Greater Lon- 
don Council in 1986, the party 
has overall control of a major- 
ity of the London boroughs - 
17 out of 32. 

This will allow it to dudr all 
the joint co-ordinating com- 
mittees formed fax the wake of 
the GLCTs abolition. These 
control fire, dvll defence, 
planning advice to govern- 
ment (although not planning 
itself), grants to voluntary 
organisations, research 
(mainly into fixe environment), 
and concessionar y toe s for 
pensioners, along with some 
transport ftmetions such as 
parting, axil fixe committee to 
ban lorries. 

Mr Toby Harris, leader of 
Haringey borough council, 
where Labour gained 14 seats 
from the Cons e rv a tiv e s, and of 
the IAboor-contrbUed Associa- 
tion of London Authorities, 
signalled that the party's 
ambitions go beyond this. It 
wants to coaxcentrate cm urban 
regeneration and partners hi ps 
with fixe p riv a te sector, rather 
than the confrontational poli- 
tics for which the old GLC is 
now remembered. 

He said he was seeking an 
Imm ediate meeting with Mr 
John Glimmer, the environ- 
ment secretary, to discuss a 
new initiative for the fixture of 
the city - establishing a 
“Regeneration Partnership for 
London”. 

He added; “Based upon a 
partnership between central 
government, toe London bor- 
oughs and fixe pri vate sector, 
this new initiative will har- 
ness public and private sector 
resources and will require 
proper direction." 

Labour also intends to use 
its extra strength to lobby for 
more European foods, and to 
try to end toe division of Lou- 
don authorities into two repre- 
sentative associations. 

The ALA was intended when 
the GLC was abolished to pro- 
vide an easy vehicle for re- 
establishing a London-wfaM 
authority once Labour was 
returned to government This 
remains a central Labour aim, 
as Mr Harris stated yesterday. 
AH its members are Labour- 
controlled, and tin organisa- 
tion concentrates on cam- 
paigning. 

It broke away from fixe Lon- 
don Boroughs Association, 
whose remaining members are 
predominantly Conservative, 
and toe two organisations 
have lobbied in different direc- 
tions, weakening attempts to 
create a cohesive “London 
voice”. Tbe ALA claimed that 
several councils had already 
contacted it yesterday, asking 
to join, while the LBA was 
non-committal about its 
future. 

Labour cannot wield as 
much power as it did by eon- 
troffing the GLC. Several joint 
committees. Including toe 
grants committee tor volun- 
tary organisations, require a 
two-thirds majority to agree a 
new budget Also, several GLC 
ftmetions, such as transport, 
have been removed from local 
government. 


Hurd seeks to unite party in time for Euro-elections 


3y David Owon 
and Roland Adbursham 

The European Union must find 
ways for member states to be 
comfortable about their Euro- 
pean identity without feeling 
that their national interests 
are being undermined, Mr 
Douglas Hurd said yesterday. 

The foreign secretary used a 
speech in Warsaw to try to 
stake out common Conserva- 
tive ground ahead of next 
month's European elections, in 
which the party hopes to avoid 
a second humiliation. 

Addressing the Polish parlia- 
ment, Mr Hurd spoke of a 
“strong Europe of self-confi- 
dent nation states” and said 
that a "multi-speed, multi- 
track, even multi-faceted 
Europe" was taking shape. 


Sir Leon Britton, toe UK’s senior 
European commissioner, has entered the 
Tory factional fight over Europe by 
attacking the "ludicrous caricature" of 
the Maastricht treaty put forward by Con- 
servative Enrophobes, David Gardner in 
Brussels writes. 

“Scaremongers would have us believe 
Britain has sat idly by as its more experi- 


enced European neighbours are twisting 
the European Union into an opaque and 
centralist bureaucracy, undermining the 
principles most cherished by the British, 
Don’t believe it,” Sir Leon says In a 

speech today. 

The speech in Stockton-on-Tees in sup- 
port of Mr Robert Goodwill, Tory candi- 
date for the European parliament from 


Cleveland and Yorkshire North, asserts 
forcibly that “in the areas that matter 
most, Europe is going Britain’s way". 

Sir Leon says he is astonished anyone 
should attem pt to reopen the question of 
KU membership. "The government has 
made it absolutely clear that it does not 
for a moment contemplate leaving toe 

union." 


The foreign secretary’s 
remarks came against a back- 
drop of growing alarm in Tory 
ranks about toe fan pHcattaBS of 
Thursday night’s results for 
next month's elections and Mr 
Major's premiership. 

Q is widely thoug ht that the 
Tories need to hold at least 
half their 32 European seats to 
give the prime minister a 
decent chance of survival. 

The blunt message from toe 


local elections is that this 
could well be a tall order. 

The Conservatives’ 27 per 
cent share of the vote on 
Thursday night was only the 
same as that obtained by the 

liberal Democrats, and is far 

below the 34.7 per cent they 
secured in the 1989 European 
elections. 

To make matters worse, the 
local electorate showed a ten- 
dency to vote for the candi- 


dates who appeared to stand 
the best chance of kicking - or 
keeping - the Tories out 
If this inriitmMnn jg repeated 
next month, it could be deci- 
sive In the crucial battle fax the 
Conservative heartland of 
southern England, where the 
party Is fi ghting tooth and nafl 
to stop a widely predicted Lib- 
eral Democrat surge in the 
south-west from spreading east 
to the Cots wolds, Hampshire 


and beyond. Early projections 
suggest fin Liberal Democrats 
may have taken as much as 40 
■per cent of Thursday night’s 
vote in southern England 
OTrTnfHng London. 

It would now require a 
remarkable reversal of for- 
tunes to prevent Tory-held 
European seats in Cornwall, 
Devon, Somerset and Dorset 
fhim falling . 

But if anything, results fur- 


ther east - where the Liberal 
Democrats swept to victories 
fax Bath, Eastleigh and Win- 
chester, gained seats in Stroud 
and Portsmouth, h el d Chelten- 
ham with ease and frustrated 
Labour's expectations of win- 
ning control of Gloucester - 
will have been mare disquiet- 
ing for the Conservatives. 

The Liberal D emo crats can 
now have realistic hopes of 
breaking out of the south- wpst 
into fixe neighbouring counties 
of Gloucestershire, Wiltshire 
and Hampshire. 

The Liberal Democrats 
believe several gains are possi- 
ble on swings of 10 per cent or 


Further east again, the Lib- 
eral Democrats won control of 
councils such as Mole Valley, 
St Albans and Worthing, 


deprived the Tories of control 
in true-blue Tunbridge WeOs 
and made sweeping gains in 
the t endon suburb of Bromley. 

This suggests they could be a 
force to be reckoned with next 
month even in the Home Coun- 
ties, where the party-estimates 
it needs a swing of about 12 per 
cant before it begins to mate 
hfifldwsy 

Tory strategists will also be 
noting nervously that the 
Greens, who in thflir brief spell 
in to* electoral limelight five 
years ago, took a quarter of tbe 
vote in Sussex West and 23 per 
cent in both Cots wolds and 
Hereford & Worcester. 

Precious little of that sti^ 

prisingly heavy environmental 

protest vote is likely to come 
the Conservatives’ way five 
years later. 



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FINANCIAL TIMES WEEKEND MAY 7/MAY 8 1994 

NEWS: UK LOCAL ELECTIONS 


RESULTS 


GREATER LONDON 


BARKING & DAGENHAM 
Lab A to changa 

Haw Comet Lab 47, R 3, LD 1 

BARNET 

CknvtaNQC 

|^qq C loss 10, Lab gain 7, LD gdn 3 
Nm Coundfc C 28, Lab 25, LD 6 
bexley 

Gtn* to NOG 

HJQQC low 10. Lab gam 6. LD gain 5 
Nma Coundfc C 24, Lab 24, LD 14 
BRENT 

NOC No change 

Lab gam 6. LD low 2, M km 3 
Now Com* C 33, Lab SB, LD 8 


BROMLEY 
C No change 

C tom 10, ID gdn 14. Lab tom 4 
Now Count*: C 33, LD 21. Lab 7 


camtipn 

Lab No change 

Lab gain 5.C low 8, LD grin 3 
Now Couneft Lab 47, C 7, LO 5 


CROYDON 

iatgrtiftmC 




Lab gain 10. C lew 10 


New Couneft Lab 40, C 30 


Cftl |ffQ 

Lab goto from C 

New Couneft Lab 48, C 20, LD 3 


Lab gain tra m C 

Lab gain 10. C low 10 

New Couneft Lab 41. C 25 


GREENWICH 
Lab No change 

Lab gain 5. C low 4. LD gam 1. 
bid tow 2 

New Couneft Lab 47, C ft 

Soc Deal 4> LD 3 


HACKNEY 
Lab No change 

Lab gain 2, LD gab) 3. C lose 2, 
bid tow 3 

New Com* Lob 44, LD 10. C S 

HAMMMNntl A FULHAM 
Lab No change 

Lab gdki 8, C lose 7, LD gain 1 
New Couneft Lab 34, C IS, LD 1 


HARMGEY 
Lab No change 
Lab gain 14, C lose 14 
New Couneft Lab 57, C 2 


HARROW 

CtosetoNOC 

HQQ LD goto 10. C low 17. Lab gain 1 

Now Cornett: LD 2ft C 17, Lab 14, 

R 3 


HAVERING 
NOC No changa 

Lab gain 5. R gam 4, C tow 8. 

LD tow 1 

New Couneft Lab 31. R 17, C 11. 
LD 4 


MUJNGDON 
LabNachango 
Lab gain 10. C law 10 
New Couneft Lab 46. C 24 

HOUNSLOW 
Lab No change 

Lab gain 8. C tow 8, LD gam 3 
New Couneft Lab 4ftC 8. LD 5 

ISLINGTON 

Lab No change 

Lab lose & LD g*i 8 

New Couneft Lab 39, LD 12. C 1 

KBGMGTFQN A CHBEEA 
C No change 

New Couneft C 39, Lab IS 

KMQSTON-UPON-THAMES 
LD gain from NOC 

LD geta ft C loaa 7. 

Grew tow 1 

New Com* LD 28, C 18, Lab 8 

LAMBETH 

NOC No change 

Lab tosa 2, LD gam 15, C toaa 2, 081- 
*a low 11 

New Couneft lab 24, LD 24, C 18 


LEWISHAM 

Lab No change 

Lab gain 5.C low S 

New Couneft Lab 63, LD 3, C 1 

MERTON 
Lob Ato change 

lab gam 11. C tow 12. R lose ft 
LD gain 3 

Now Couneft lata 40, 0 10, R 3. 

LD % Others 1 



NEWHAM 

Lab No change 

Lao gam 8, LD tow 1. C tow 4, 
tnd lose 1 

Now Couneft Lab SO, LD 1 

REDBRDGE 
C low to NOC 

New Couneft Lab SB, C 24, LD 0 
RICHMOND-UPON-THAMES 
LD No change 

LD tosa a. C gam 4, Lab gam 2 
New Couneft LD 43, C 7, Lab 2 

SOUTHWARK 
Lab No change 

LD gain 5. C lose 3. Ind tow 2 
New Couneft Lab 34, LD 27, C 3 

SUTTON 
LD No Chongs 

LD gam IS, Lab lose 1. C tow 14 
New Couneft LD 47, Ub ft C 4 

TOWER HAMLETS 
Lab gain fmm LD 
am Lab gam 23, LD tow 22, 

BNP lose 1 

New CowKft Lab 43, LD 7 

WALTHAM FOREST 
Lab lose So HOC 

NQQLab loaa 2, LD gam 3. ind lose 1 
New Com* Lab 27, C 18, LD 14 

WANDSWORTH 
C No chango 
C tow a Lab gain 3 
New Couneft C 45, Lab 18 

WESTMINSTER 
C No change 

Now Couneft C 45, lab 15 


GREATER MANCHESTER 

BOLTON 

Lob No change 

Lab 14. C 2. LD 3 

Lab tosa 1. C lose 1, LD gain 2 

New Couneft Lab 37. C IS, LD 8, 

Veo 1, Other* 1 

BURY 

NOCNochengo 

Lib 14, C 1. LD 1 

C tow 1, LD gain 1 

New Couaoft Lab 24, G 21, LD 3 


ABBREVIATIONS 

C ConwrvaOwa: Lab Labour LD 
Liberal Democrat; Green Green 
Party: SW ScotWi National; PC 
Plato Cymru; BNP BtttMi NWonafc 
tod bidepandant; R Rstopayo* or 
Rasidanta; Lib Ubarai; Soc Dam 
Social Democrat Other* Other*; 
NOC No Orarafl Control 


MANCHESTER 
Lab No change 
Lab 28. LD 5 

LD gam 2, C low 1, bid tow 1 
New Couneft Lab 73, LD IB. C 4, 
tad 1 


OLDHAM 

Lab lama to NOC 
■ayiLab 11. LD S 

'""Lab tow 3. ID gain 4, tad low 1 
New Couneft Lab 2ft LD 2ft C T, 
Ind 1 


ROCHDALE 
NOC No changa 
Lab 11. ID 7. C 3 
Lab tow 1.LD gain 2.C torn 1 
New Couneft Lab 2ft ID 2ft C 14, 
tad 1 


SALFORD* 

Lab No change 

Lab 1ft LD 1 

C lose 1. LD gain 1 

New Cntnu* Lab 54, C S, LD 1 

STOCKPORT 
NOC No chango 
LD 13. Lab 8. R 1 
LD gain 4. C toes 4 
New Couneft LD 3ft lab 17, C 1ft 
R 3 


TAMESDE 
Lab No c h ange 
Lab 20 

Lab gata 1, Others lose 1 

New Couneft lab 48, C 8. Other* 1 

TRAFFORD 
CNo change 
C 8. Lab 11. LD 2 
C tow 2, Lab gain 1. LD gata 1 
New Couneft C 8ft Lab 2ft LD 6 

WIGAN 

Lab No change 
Lab 23, LD 1 

New Couneft Lab 64, LD ftC 2, bid 1 


WEST MIDLANDS 

onntGHMi 

Lab No chango 
lab 30. C 4, LD 6 
Lab goto 1, C tow 2, LD grin 1 
New Coaneft Lab 82, C 4ft LD 14, 
Vac 1 

COVENTRY 
Lab No changa 

Lab 16, C 2 

Now Couneft Lab 41, C 13 

DUDLEY 

Lab No change 

Lab 1ft C 4, LD 1 

Lab gata 1. C tow 2.LD gata 1 

New Cotaicft Lab 3ft C 33, LD 1 

SANDWBJ. 

Lab M5 change 

Lab 20, C 1. LD 3 

Lab gata 1, C tow 2. LD gata 1 

New Count Lift 43, C 2ft U> 7 

SOLIHULL 
NOCMaehwwe 
C 5, Lab 7. LD 4. R 1. tod 1 
C lose 2. LD gata 2 
New Couneft C 2% lab 1ft LD ft 
R ft tad 1 


WALSALL 
WO CNo change 
Lab 14, C 4, LD 2 
Lab gata 1. C taw 1 
Now Couneft Lab 2ft C 22, LD ft 
tad 4 


WOLVERHAMPTON 
Lab gain front NOC 
4* Lab 1ft C 4. LD 1 
yT Lab gata 2. C tow 2 

Haw Couneft Lab 31, C 2ft LD 3 


MERSEYSIDE 

KNOWSLEY 
Lab No change 
Lab 23 

Lab gam 1, C low 1 

New Co m e * Lab ttl, tad ft C 2 

LIVERPOOL 
NOC No change 

Lab 18, LD 13. C 1, Lto 1. Others 1 
Lab gata ft LD gata 4, Ub gata 1. Om- 
an tow 10 

New Couneft Lab 4ft LD 4ft C ft 
U, 2. Other* 7 


STHEL04S 
Lab No dwnge 
Lab 14. ID 4 

Lab (pta 5, C tow 1. Others taw 4 
New Cotaicft LM> 33, LD 14, C ft 
Other* 2 

SEFTON 

NOC No chango 

Lab 10. C ft LD B 

Lab tow 1. C tow 1, LD gata 2 

New Cotaicft Lab 2ft C 24. LD itt 

WHRAL 

NOC Mo Change 

Lab 1ft O ft ID 3 

C low 2, LD gata 2 

New Couneft Lab 30, C 2ft ID 8 


WEST YORKSHIRE 

BRADFORD 

Lab No change 

Lab 23. C 5. LD 2 

Lab gain 1, C low ft LD gata 2 

New Couneft Lab M,C 3ft ID 4 

CMDEROALE 
NOC No change 
C ft Lab 11. LD 3. tad 1 
C low 1. Ind gata 1 
New Couneft C 2ft Lab 22, LD 7. 
tad 2 


KHOSS 
Ub tome to NOC 
ufY» Lab 14, C 3. LD 7 

Lab ton 6, C gata 3. LD gata 5, 
tad tow 2 

Now Counoft Lab 3ft C 21, ID 1ft 
tad 1 


I FTPS 

Lab No change 
Lab 27. C 4. LD 3 
New Couneft Lab 87, C 2ft LD ft 
tad 1 


WAKEFIELD 

Lab Nb change 

Lab 20. C 1 

Lab gata 1.C tow 1 

New Couneft Ub 6ft C ft tad 2 


SOUTH YORKSHIRE 

BARNSLEY ’ 

Ub No change 

Ub 21, ind 1 
Lab k»e t, tad gam i 

New Couneft Lab 82, C ftR l.tad 1 

DONCASTER 
Lab No change 
Lab 21. C 2 

NSW CovtWfc lab 54, C 8 

R01HHWAM 
LabNochmgo 
Lab 21. C 1 

Now Counoft Lab 8ft C 3 

SNEfTBLD 
Lab No changa 
Lab 20. LD 12 

Lab low ft LD gata 11. C tow 3 
New Couneft Lab 57, LD 2ft C 8 


TYNE AND WEAR 

OATESHEAD 
Lab No change 
Lab 17. LD 5 
Lab taw 4. LD gata 4 
Now Coaneft LM> SI. LD 1ft C 1, 
tad 1, Lb 1 


NEWCASTLE-UPON-TYNE 
Lab No change 
Lab 22, LD 8 

Lab tow ft LD gata 3, C tow 1 
Hew Cotaicft Lab SB. LD 14. C 6 

NORTH TYNESBE 

Lab Ms change 

Lab 14. C 4. LD 3 

New Couneft Lab 3ft C 1ft LD 8 

SOUTH TYNE3ME 

Lob No change 

Lab 18, LD 2 

L*> tow 1, LD gata 1 

New C m reft Lab 84. ID ft Otter* 1 

SUNDERLAND 

Leb No change 

Lat) 23, C 2. LD 1 

Lab gata 1, C tow 1 

New Couneft Lab 8ft C 7. LD 3 


ENGLAND 


Aran 

LD No change 

LD 11, R 1. Lab 1 

LD gain 3, C low 3 

New Couneft LD 2ft C 11, R 2, Lab 1 

AMBER VALLEY 
Lab No change 
Lab 13. C 1 

Lab gam ft C tow 1. tad tow 1 
Naw Cotaieft Lab 34, C 1ft lad 4 


BARROW-M-fURNESS 
Lab gata bora NOC 




Lab 14, C 1 

Lab gain 5. C taw 4. tad tow 1 


New Com* Lab 24, C 13, Ind 1 


BASODON 

CtosetoNOC 


uy>Ld> 8,1b 8 

tow 4, LD gata 4 

New Couneft c 1ft Lib 1ft LO ft 
Others 2 


BASM08TOKE & OCANE 
C tow to NOC 


rKA/ C low 7. LO gdn 8. Ind gam 1 
New Couneft C 2ft LD 13, Ub 11, 
h*f 5 


BASSETLAW 
Leb No change 
Lab 14. C 1. LD 2 
C low i.LD grin 1 
Now Cota** Lab 3ft C 1ft tad ft 
LD 2 


BATH 

LDgakttnmNOC 
v LD 17. C 1 

^ LD gidn 12, C tow 7, Lab low 5 

Now Cotaicft LD 2ft C 17, LM) 2 

BLACKBURN 
lob No change 
Lab 15. C 4, LD 1 
New Coweft Lab 3ft O 1ft ID 4, 
tad 1 


BRB4TWOOD 
LD No change 
LD 1ft C 2. Lab 1 
LD gata 2.C tow 1, Ind low 1 
New Cotaicft U> 2ft C 1ft tad 1, 
Lab 1 


BRIGHTON 

Lab No change 

Lift 1ft C 4 

Lab gain 1. C tow 1 

New Cotaicft Lab 27, C 21 

BfUSTOL 
Lab No change 
Lab 17, C ft LD 4 
C tow 3, LD grin 3 
Naw Coaneft Lab 3ft C 1ft LD ft 
tad 1 


BROADLAND 

CtosetoNOC 


MfipC 4, LD ft Lab 3, tad 2 

C low 4. ID gdn ft Lab tow 1 
New Couneft C 2ft ID 1ft Lab ft 
fadS 


BRQXBOURfE 
C No chango 
C 9. Lab ftLD 3 
C lose ft Lab gata 1, LD gata 2 
Naw Couneft C 33, Lab ftLD 4 


BURNLEY 
Lab No change 
Lab 13. LD 3 

Lab gain 1. LD gata 2. C tow 3 
Now Cotaicft Lab 33, ID ft C ft tad 1 

CAIBRDGE 

NOC No change 
Lab 7. ID 7 

Lab low ft LD gain 4,0 tow 2 
New Cornett: Lab 1ft LD 1ft C 7 


CANNOCK CHASE 

Lab No chengs 

Lab 14. LD 1 

Lab gain 1.C tow 1 

New Count* lab 31, C 7, tad ft U> 2 

CARLISLE 

LabNochonge 

Lab ft C ft LD 1, tad 1 

Lab low 3. C gata ft LD gata 1 

New Couneft lab 27, C 20, LD 3. 

Ind 1 

CHBLTBWAM 
LD No change 
LD 1ft Ind 1 

LD gain ft C tow 2. Lab tow 1. 
tad gata 1, Other* low 1 
New Couneft LD 28, C 10, Lab ft 
Ind 1, Other* 2 


GHERWELL 
CNo change 
C 7. Lab 7. ID 3 

New Couneft C 31, Lto 18, LD 4, 
tad 1 


CHESTER 

NOC No change 
C 4, Lab 1ft LD 6 
New Com* C 23. Lab 1ft LD 1ft 
tad 2 


CHORLEY 
NOC No change 
Lab 11, C 3, LD 3 
lab low 1. LD gain ft Others lose 1 
New Count* Ub 21, C 2ft LD ft 
tad 1, Others i 


COLCHESTER 
LD gain bom NOC 
v LD 13, C 4, Lab 3 

ID gata 4, C lose ft Lab too 1, 
R lose 1 

New Couneft LD M, C 1ft Lab ft R 1 

CONGLETON 
CD gata from NOC 
, ID 14. Lab 2 
^ LD gata 7. C lose ft Lab kao 4 

New Cotaicft ID 27, C 13, Lab 8 

CRAVEN 
NOC No change 
LD 6, C ft tad 2, Lab 1 
LD gata ft C low 2 
Naw Couneft LD 1ft C 11. tad ft 
Lab 3 


CRAWLEY 

Lab Afa Change 

Lab 10. LD 1 

LD gain l.tad tow 1 

New Cotmoft Lab 2ft C 7, LD 2 

CREWE & NANTMCH 

Lob No change 

Lab 13. C 7.1D 1 

lab taw 2. C gain 1. LD gain 1 

Now Cotas* Lab 2ft C 2ft U> 3 

BMIBfTRY 
CM) change 
C 4. Lab ft tad ft Ub 1 
C lose 1. Lab gata 1, tad gata 1, 
LD tow 2. Ub gain 1 
Haw Cotaicft C 1ft lab 12. tad 3. 
ID 1,1ft 1 


Lab No chango 

Lab 11. C 4. LD 1 

Lab gdn ft C low 3, LD gata 1 

New Com* Ub 24, C 1ft LD 1 


EASTBOURNE 
LD No change 
LD ftC 2 
ID gata ft C tow 2 
New Couneft LD 1ft C 11 

EAST1BQH 
ID gata from NOC 
v LD 13, C 2 

4?^ LD gata 4, C taw ft Lab taee 2 
Now Couneft ID 23, C 1ft Lab 3 

ELLESMERE PORT A NESTON 
Lab Ms changa 
Lab 1ft C 1 

Now Counc* lab 30. C 11 

BJHBRTOGE 

WOC NO changa 

CftR7.LD4.lab3 

R gain 1, Lab tosa 1 

New Com* C 22. R 2D, US 10, 

Lab 7. tad 1 


CPPIN Q FOREST 

CtosetoNOC 

ivy>C 5. Lab 6, ft 4, LD 4 

tow 4. Lab gain 1. LD gain 3 
New Couneft C *7, Ub 14, R 1ft 
LD 8,800 Dam 2 

EXETER 
NOC No change 
Lab 9. C 1. LD 2. Lto 1 
C tow 2. LD gdn 1, Ub gain 1 
New Cm re* Lab 1ft C 12. LD ft 
Lft 2 


RAR91AM 
NOC No change 
LD 12, c 1, Lab 1 

LD gain ft C tow 3. Lab lose ft Oth- 
ers toea 3 

New Couneft LD 1ft C 14, L* ft 
Other* 10 


GILLINGHAM 

NOC No change 

LO 11, C 1. Lob 3 

LD gata 5, C tow 3, Lab low 1, 

tad lose 1 

New Couneft ID 2ft C 13. Lab ft 
lad 1 

GLOUCESTER 
NOC No change 
Lab 1ft LD 4 

Lab gdn T. C low ft LO gain ft 
tad low 1 

New Couneft Lab 17, C 11, LD 7 

GOSPORT 
LDNo change 
LD ft tad 1, Lab 1 
LD gata 1, C taw 1 

New Couneft LD 17, C 7, tad 3, Lab 3 

GREAT GRMSBY 
Lob No charge 
Lab 11. C 1. LD ft tad 1 
C lose 1. LD gata 1 

New Couneft Ub2ftCftLDftlnd3 

GREAT YARMOUTH 

Lab No charge 

Lab 13, C 2. ID 1 

tab low 2, C gata 1, LD gdn 1 

Mm* Counoft Lab 27. C 1ft LD 2 

HALTON 
Lab No change 
Lab 15.LD 2 

Now Corn* Lab 44, LD 7, C 2 
HARLOW 

LabNochonge 

Ub 13, LD 1 

lab gata 1, C lose 1 

New Couneft Lab 33, C 8, US 3 

HARROGATE 

LDNo chengs 

ID 17. C 3. Lift 1. tad 1 

LD gWi ftC low 3, lab tow ft 

Groan low 1 

New Com* LD 37, C 1ft L* ft 
tad 2 


HART 

NOC Ms change 
LD 5, C ft tad 4 
LD gain ft C taw 3, tad gain 1 
Now Couneft LD 14, C 13, tad B 

HARTLEPOOL 
Lab No change 
Lab ft C 3, LD 3 
Lab lose ft LD gata 2 
New Coaneft Lab 28, C 1ft LD ft 
tad 1 


HASTMGS 
NOC Ms change 
LD ft Lab 5 

LD gain 3, Lab gain 1, C tow 4 
Now Council: LD 1ft Ub 1ft C ft 
tad 2 


HAVANT 
NOC No change 
C 1, Lab 4. LD 8 
C tow 3, LD gata 5. Ind low 2 
New Com* C 1ft Ub 1ft LD 11, 
tad 3 


HBWORD 
LD No change 
LD ft lab 2 

New Couneft LD 22. Ub 4, C 1 


HERT8MERE 
C tow to NOC 


UfY'C 4. Ub 4, LD 4, tad 1 
l * A, C low 4, Lab grin ft LD gata 2 
Now Cotaicft C 1ft Lab 14. LD 5, 
tad 1 


HUNTINGDONSHIRE 
CNo change 
C 10, LD 5. Lab 3 
C tow 3. LD gam 3 
New Couneft C 37. ID 11. Ub 4, 
tad 1 

HYHD6URN 
Lab Ms change 
Lab 15, C 1 

Lab gain 1, C g tan 1. LD tow 2 
New Com* Ub 33, C 13, LD 1 


taSlMCH 

LabNochonge 

Lab 15, C 2. LD 1 

C low I.LD gata 1 

New Couneft Ub 33, C 14, LD I 

KMGSTON-UPON-HULL 

Lab No change 

Ub 1ft LD 3 

Lab lose ftLD gam 3 

New Cotaicft Ub 5ft LD ft C 1 

LEOMINSTER 

tad Ms change 

tad B, LD ft Ub 1 

Naw Couiot: tad 1ft ID 8, C ft 

Ub ft Green 1 


LINCOLN 

Ub Ms change 
Ub 11 

Now Couneft Lab 80, C 3 


mm won i) 

CNo change 
C ftLD ft Lab 4. R 1 
C tow 1, LD pta 1 
Now Cotaicft C 3ft LD 15, Ub 1ft 
R 3 


MAIDSTONE 
NOCNochange 
C 3 LD 11. Lab 4, Ind 2 
C low ftLD gain 2. lab gdn 2. 
tad tosa 1 

Now Count* C 2ft LD 17, Ub 1ft 
tod S 

ME.TON KEYSES 
NOC No change 
Lab 1ft LD 3 

Lab low 1.C taw 1,LD gata 2 
Now Counoft Lab 2ft C 14, LD 11, 
tad 1 

MOLE VALLEY 

LD gate fmm NOC 

v LD 10.C l.tad 2 

y* 1 LD gain 3. C tow ft tad low 1 

New Couneft ID 21, C 11. tad ft 
Ub 1 

NEWCA571E-UNDSW.Y1* 

lab Ms changa 

Ub 13. ID 5, C 1 

Lab lose 3. LD gain 4, C low 1 

New Count* Lab 33, LD 14, C 8 



AsHay Astmood 

Derek Beackon, (centre, passes) the ousted BNP canncillor in the Mill wall ward, on Tower Hamlets council, at the count 


NORTH BHJFORD8HRE 
NOC No change 
C 4, Ub 8, LD ft tad 2 
C tow 3, Lab geta i.LD -gain 1. 

Now Couneft C 22, Ub 1ft LD 11, 
tad 4 


NORTH t d rPOROBHWE 
CtosetoNOC 


uty'C ft Lab 7. LD 2, tad 1 

tow ft LD gdn 2, tad gata 1 
Now Cou n eft C M, Ub 1ft LD ft 
bid ftR 1 


NORWICH 

Lab No change 

Ub 13, LD 4 

LD gata 1. C low 1 

Naw Cotaicft Ub SS, LD 11, C 2 

MJMEATON A BEDWORTH 
Ub No changa 
Lab 14. C 2 
Lab gam 1,C low 1 
New Couneft Ub 37, C 8 

OXFORD 
Lab No change 
Lab 13. LD 3. Groan 1 
Lab gain 1, C tow 3. LD geta ft 
Groan geta i. tad tow 1 
New Com* Lab 3ft C 7, ID 7, 
Groan 1 

PB0LE 

Lab loaa to NOC 

UfY'L ab 7. LD 9. C 1 

™ Ju lato tow 4. LD gain 4 

New Couneft Ub 23, LD 21, C 7 

PENWTIH 

noc No change 

Lab 6. tad I.LD 4, Others 1 
C tow ft Ind tow 2. LD gain 4 
New Corn* C 1ft Ub ft Ind 7, 
LD 7, Other* 1 


NOC No changa 
C 5, Lab ft Ub 1. LD 1 
Ub gain 1. Lto tow 1. Ind tase 1. 
LD gata 1 

New Couneft C 21, Lab 1ft Lt) ft 
tad ftLD 1 

PORTSMOUTH 

NOC No change 

C 1. Lab ftLD 5 

C taw ftLD gata 2 

New Count* C 1ft Ub 1ft LD 9 

PRESTON 

Ub NO change 

Lab 11. C 5. LD 4 

Ub tow 1. C tow 1, LD gata 2 

New Com* Lab 31. C 1ft LD 7 


PURBBCK 

NOC No change 

ID 4, tad 4 

C tow ftLD gata 2 

New Cotaicft C ftLD ft fad 5 

READING 
lab Ms change 
Lab 11, C ft ID 3 

lab low 1. C gam 1. LD gain 1. Oth- 
ers low 1 

Naw Counoft Ufa 2ft C IftLD 5 


REDOJTCH 

Lab Ms change 

lab ft C 2. LO 1 

Lab tow i. LD gain 1 

New Couneft Ub 1ft C ftLD 1 

RBQATE A BANSTEAD 

NOC No change 

C 4. LD 6, Lab 4, R 1, tad 1 

C lose 2. LO gata 2 

New Couneft C 2ft ID 1ft Ub 11, 

R ft Ind 1 


ROCWORD 
LD gata from NOC 
v LD 10, L* 4, R 1 

LD gain 3.C low 2, tad low 1 

Naw Couneft LD 21. C 10. Ub 7. R 2 

BOS S BENUE 

Ub No change 

Lab 11. C 1 

Lab tow i,C gam i 

New Couneft Ub 2ft C IS 

RUGBY 

NOC Nb change 
C ft Lab 7, R 3, LD ft tad 2 
C low i, LD gam i 

New Corn* C 1ft Ub 1ft R ft 
LD 4. tod 3 


RUNNYMEDE 
C No change 


TAMKUDGE 
C gain from NOC 


WYRE FOREST 
NOC No change 


C 5. Lab 6. Ind ft LD 1 C 5. LD 7. Lab 2 Lab 7. LD ft C 1 

C lose ft Lab gata 2. LD gain 1. f C gain 2, LD lose I. Lab loae 1 Lab lose 3. LD gata 4. C lose 1 

Green tow 1 New Com* Ub 18, LD 1ft C ft 

New Couneft C2B,UbfttodftLD1 New Couneft C 2ft LD 17. Ub 3 Ind 1 


RUSHMOOR 
CMs change 
C 4. LD 7. Lab 4 
C low 5. LD geta 3. Lab gata 2 
Naw Cotaicft C 2ft LD 1ft Ub 8 

ST ALBANS 
ID gain bran NOC 
LD 1ft Lab 3 
ID gata 4. C tow 4 

Now Couneft LD 2ft C 1ft Ub 9 

SCUNTHORPE 
Ub No changa 
Lab 14 

Lob gata 1. C lose 1 
New Com* Ub 34, C ft 
Soc Dem 1 

SHREWSBURY A ATCHAM 
NOC No change 
C 2. Lab ft LD 6. tad 2 
C low 4, Lab lose 2, LD gain 6 
Now Com* C 1ft Ub 15, LD 11, 
tad 8 



SLOUGH 
LabNochonge 
Lab 13. Ub 1 

Now Cotaicft Lab 2ft Lb ft C 4, 
tad 2 

SOUTH B83F0R06KRE 

CM) change 

C 7, Ub ft LD ft Ind 2 

C tow 2. LD gam 1. bid gain 1 

New Counoft C3S.LabftLD7.tad2 

SOUTH CASmDOBBHRE 
NOC No change 
C3.tndftLD4.Lsb3 
C tow 4, tad low 1, LD gata 4. 

Lab gdn 1 

New Com* C 22. tad 2ft LD 7, 

Lab 8 

SOUTH HEREFORDSHIRE 

tad Ms change 

tad ftLD 5 

Ind tow 3. LD gdn 3 

New Com* tad 2ft LD 7. C 4 

SOUTH LAKELAND 
NOCNochange 
LD 11. C 2. Ind 3, L* 1 
LD gam 4, bid tow 3. Lab tow 1 
New Cotaicft LD 1ft C 1ft Ind 11, 

Ub 6 


SOUTHEND-ON-SEA 
C tow to NOC 


UTY'C 4. LO ft lab 3 

low ft LD gdn 5. Lab gam 1 
New Couneft C 1ft LD 14, L* 7 


SOUTHAMPTON 

Lob No change 

Lab ft LD 7. C 1 

Lab low ft ID gain 5 

New Com* Ub 2ft LD 14, C 8 


STEVENAGE 

Lab Ato change 

Ub 13. LD 1 

Ub Ewe 1. LD gdn 1 

Now Couneft Ub 31, C 4, LD 4 


8TOKE-ON-TRBfT 
lab NO change 
Leb 21 

New Com* Lab 4ft C 11 

STRATFORD-ON-AVON 

C tow HONDO 

lyv'C ft LD 10. tad 1, Ub 1 

tow Z LD gata 3, bid tow 1 
New Cotaicft C 2ft LD 22, tad ft 
Lab 2 


STROUD 

NOC Ms Change 

Lab 7. LD ft Own ft Ind 3 

C lose 5. LD gain 3. tad gata 2 

New Couneft C 17, Ub 14, LD 13, 

Gram ft tad ft Other* 1 


SWALE 

NOC Nb changa 
LD ft C 1, Ub 7 
LD gata ft C tow 3. Lab tow 2 
New Counc* ID 1ft C 17, Ub 1ft 
tad 1 


TAMWORIH 

lab No change 

Ub ft ind 1 

Lab tow 1, tad gain 1 

New Com* Ub 2S.C fttad 2 


THAMESDOWN 
Ub No change 
Lab 15. C 1. LD 4 
Lab lose 1. C tom I.LD gain 2 
New Com* Lab 33, C 12, LD ft 
Ind 1 

THREE RIVERS 
NOC No change 
C 5. ID ft Lab 2 
LD gdn 2. Lab low 2 
Now Com* C 21, ID 1ft Ub 7. 
Vac 1 


THURROCK 
Lab No change 
Ub 12. C 1 

Naw Couneft Ub 2ft C 7. Ind 1. Otfv 
ars 2 


TUNBRIDGE WELLS 
C torn to NOC 
UTY'C 3. LD 11, Lab 2 
lose 5. LD gam 5 

Now Com* C 34, ID 2ft Ub 3, 
tad 1 


WATFORD 

lab No change 

Lab ft C 2. LD 4 

Lab lose 2, C low 1, ID gain 3 

New Counc* Lab 2ft C ftLD 7 

WAVENEY 

Ub Mo changa 

lab 14, C 1. LD 1 

Ub gata 1, LD low 1 

New Com* Ub 27, C 17, ID 4 


WELWYN HATFIELD 
Ub gain from C 




Lab 10. C 8 
Lab gata i. C lose i 


New Com* Ub 24, C 23 


WEST LANCASHIRE 
Lab gain from NOC 
« Lab 12. C 6 

/* Lab gata 2. C tone 1, LD lota 1 
New Counc* Lab 2ft C 28 


WEST LINDSEY 
NOC Ato change 

LD 7. Ind 1.C 1. Lab 2. Others 1 
ID gain 3. tad torn 1. C tom 1. 

Ub lose 2, Others gam 1 
New Counc* LD 1ft tad 10, C ft 
Ub 5. Other* 1 

WEST OXFORDSHIRE 
NOCNochange 
tad 5, C 1, LD 8. Lab 2 
tad lose l.C lose 2, LD gata 3 
New Com* tad 1ft C 12, ID 12, 
LM> 6. Vac 1 


WEYMOUTH A PORTLAND 
NOCNochange 
LD 5. Ub 4. ind 3 
LD gdn 4. lab lose 1, C lose 3. 
tad gata 1. Other* tom 1 
New Counc* LD 14, Ub ft C 7. 
tad 4.R 1 


WHCHESIER 
LD gain fmm NOC 

v LD 15, C 1, Lab 2, Ind 1 

LD gata 5, C taae 8, Ind gain i 

New Counc* LD 2ft C T7, Lab ft 
tad 4 


WQKNQ 

CtosetoNOC 

ihy'C 3, LD & Ub 2 
low 2. ID gdn 2 
New Count* C 17. LD 13, Ub 6 


WDKMGHAM 
CNo changa 
C 11. LD 10 
C g*i 1, Lab tooe 1 
New Count* C 34, LD 20 


WORCESTER ‘ 

Lab No change 

Ub 8,0 2, LD 3 

Lab gam I. C lose 2, LD gain 2, 

■rad tone 1 

New Co m * lab 23, C ft ID 4 


wofmwa 

LD goto from C 
v ID 1ft C 2 
5*^ ID gam 5, C lose 5 


New Com* LD 1ft C 17 


YORK 

Ub No change 

Lab 14. ID 1 

Lab gain l.C tosa 1 

Now Counc* Ub 38, C ftLD 4 


WALES 

NEWPORT 

lab No change 

Lab 15, C 1 

Lab gain 3. C tom 3 

Now Counc* Ub 4ft C 4 

RHONDDA 

Ub No change 

Lab 8. PC 3 

Ub lose 3, pc gain 3 

Naw Counc* L* 2ft PC 7, R 3 

PORT TALBOT 
Ub No change 
Lob ft H 1 

Naw Counc* Ub 21, R ft tad 1, 
ID 1, Other* 2 


SWANSEA 
Ub No changa 
Lab 13, ID 4 

Lab gata 2. LD gain 2. C lose 4 
New Com* Lab 32, LD ft C ft 
Ind 4.R 2 


SCOTLAND 

BORDBtS 
Ind lose to NOC 

Now Counc* tad 11. LD ft SNP ft 
C 2 


CENTRAL 
Lab No change 

Now Counc* Lab 23, SNP ftC 4, 
tad 2 

DIMFRtES ft GALLOWAY 
NOC No change 

tad tom 4, LD gain 3. SNP tom i. 

C gata 2 

Naw Counc* tad 12, Lob 11, LD ft 
SNP 3, C 3 


FEE 

Lob No change 

Lob tom i. LD gam 1. SNP gain 2. 

C lorn 2 

New Counc* Ub 2ft LD 12, SNP 4, 
tad 1. Other* 1 


GRAMPIAN 

NOCNochange 

U7 gdn a, SNP gata 3, Lab torn 4, 

C tom 5. tad tom 1. Othre lose 1 
New Counc* LD 18, SW> 17, Ub 12, 
C fttad 2 


HIGHLAND 
tod No change 

New Counc* Ind 34, Ufa ft SNP 4, 
LD ftC ft Others 3 


LOTHIAN 
Lab No change 

Lab gain 2. C lorn 7. LD gata 2. 
SNP gam 3 

New Count* Ub 3S, C S, LD 4, 
SNP 4 

ORKNEY 
tad Ato change 

New Count* tad 27, Vac 1 

SHETLAND 
Ind No change 

New Count* tad 1ft LD ft Ub 1, 
Other* 7 

STRATHCLYDE 
Lab No change 

New Count* Ub 8ft SNP 7. LD ft 
C fttad 2 

TAYSlDE 

NOCNoehonga 

SNP gam 12. Ub lose ft C tase ft 
LD lose 1 

New Com* SNP 2ft LM) 1ft C 4, 
LD fttad 2 

WESTBW ISLES 

moNocrunge 

>nd lam 4, Lab gata 4 

New Count* bid 24. Ub «, Vac 2 





FINANCIAL TIMES 

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

Saturday May 7 1994 


Still in a 
deep hole 


It is a year since Mr Kenneth 
Clarke confessed that the govern- 
ment was in a “dreadful hole”. 
The chancellor, who was home 
secretary at the tune, was 
reflecting on the fliswmi Conserva- 
tive performance at last May's 
local elections. Those contests 
enabled the electorate to express 
an opinion on the ejection of ster- 
ling from the exchange rate mech- 
anism in September 1992. Voters 
indicated their deep dissatisfac- 
tion with the performance of the 
administ ration that was elected in 
April 1992. Labour did well, but 
the most significant beneficiaries 
were the Liberal Democrats. 

Deep dissatisfaction 

Following this year’s local elec- 
tions, all the change - from the 
gove rnm ent’s point of view - Is 
for the worse. The hole that 
threatens to engulf the prime min- 
ister and perhaps his party with 
him is deeper. On Thursday the 
Tories came fourth in Scotland, 
and third - behind the Liberal 
Democrats - in the rest of the 
country. They were trounced In 
and around London. Their esti- 
mated share of the total popular 
vote, at some 27 per cent, reflects 
recent opinion poll results. This is 
the most unpopular Conservative 
government In post-1945 history. 

The expectation is that there are 
worse shocks to come. The Liberal 
Democrats are favourites to take 
Eastleigh from the Conservatives 
in a forthcoming by-election. If 
this week's performance in the 
local contests is repeated at next 
month’s European elections, the 
Tories could face a wipe-out of 
Canadian proportions, with 
Labour winning a preponderance 
of seats and the Liberal Democrats 
mopping up most of the rest. Since 
the Conservatives remain deeply 
divided about Britain’s proper 
place in the European Commu- 
nity. this is possible. 

There are in effect two Conser- 
vative parties. One believes that 
Britain must, in the last resort, 
adapt to the continental consen- 
sus. The other regards such a 
strategy as surrendering British 
sovereignty. These convictions are 
ultimately irreconcilable. For the 
moment the Conservative coali- 
tion is being held together by thin 
rhetoric. Decisions on intractable 
mattes such as a single currency 
are postponed, while on everyday 
affairs the govemmment asserts 
that it will “stand up for Britain" 
while remaining “at the heart of 
Europe". 

In short, today's party may be 
unleadable. Yet Mr John Major’s 
leadership is once again under 
question. If it could be demon- 
strated that the prime minister 
was personally responsible for the 
loss of public support for the Con- 
servatives. and that one of his ool- 
leagueS could do the job better, he 


might reasonably conclude that h« 
should step down. This is not, 
however, the case. None of the 
contenders for the Job - not Mr 
Michael Heseltme, nor Mr Michael 
Portillo, nor Mr Kenneth Clarke, 
would guarantee a permanent end 
to internecine strife. The govern- 
ment is out of favour for a variety 
of reasons, only one of which is 
tiie well-known list of misfortunes 
and inept decisions for which Mr 
Major alone may be said to be 
responsible. 

The Tories' counter-inflation 
strategy, which has been effective, 
brought about a prolonged reces- 
sion. Recovery is slow. The statis- 
tics are pointing to better times, 
but the resurgence of growth is 
not being felt by a sufficient num- 
ber of people to make a difference. 
The housing market is recovering, 
but only gradually. Real incomes, 
net of tax, are rising impercepti- 
bly, iif at alL Taxation, which Mr 
Major promised in 1992 would not 
be increased, has been raised by 
the largest amount in peacetime 
memory. 

Yet the performance of the 
opposition, is not quite as threat- 
ening as it looks. The Liberal 
Democrats will have to be taken 
more seriously if they win in East- 
leigh and do well in the European 
elections, but they have a long 
way to go. Labour’s tally on 
Thursday, at about 41 per cent of 
the vote, fell short of its opinion 
poll ratings of 47 and 48 per cent 
The party's leader, Mr John 
Smith, is apparently content to 
watch the Conservatives tear 
themselves apart This could be a 
fetal error. On Thursday it worked 
in places like Croydon, but not 
everywhere. When the next gen- 
eral election comes, southern vot- 
ers will want a reason, and one 
they can believe, for trusting 
Labour. 


Fatal error 

Meanwhile, Mr Major should 
slow down. If he reshuffles his 
cabinet in July he should do so 
without appearing to panic. Com- 
petence should be preferred to 
party balance. Mr John Patten has 
run out of rope at education, and 
may not be suitable for any other 
department Mr Michael Howard 
has not been a successful home 
secretary, but he is too big a 
player to be relegated. Mrs Vir- 
ginia Bottomley is no longer use- 
ful at health. Mr Portillo should be 
tried out in a department, while 
Mr Stephen Don-ell, Mr Brian 
Mawhinney, Mr David Davis, and 
Mr Jonathan Aitken should be 
brought in to the cabinet 

Beyond that, the government 
would do best to try a period of 
quiet competent administration. 
It is counter-productive to invent 
a new wheeze every other Tues- 
day. When in a hole. It is advis- 
able to stop digging. 


A former central bank 
governor and a former 
head of the stock 
exchange are remanded 
in a common jaiL The 
ex-chief of paramilitary police is on 
the run. Two ministers and the rut 
ing party’s parliamentary leader 
have felt obliged to resign. Joined 
yesterday by the head of the coun- 
try’s anti-drug programme. This 
week tiie whole of Spain has been 
gripped by the spectacle of a politi- 
cal crisis spinning vertiginously out 
of controL 

Mr Felipe GonzAlez, the prime 
minister, returned last night to his 
home town of Seville to try to stir 
up his alarmed Socialist troops to 
face European told regional elec- 
tions just five weeks away. 

The day before, in a televised 
press conference, he made a belated 
effort to put a lid cm the crisis, 
doing his best to p reject the custom- 
ary confidence and serenity, talking 
fr ankly of “mistakes" arid “difficult 
days", saying he had no intention of 
quitting or dissolving parliament 
But his nervous smile betrayed the 
traumatic experience he and his 
government have been going 
through in the past few days. 

Mr GonzHez is not to be easily 
written off. He has come bade and 
fought bis way out of tight situa- 
tions before. Eight years ago he 
wimp close to boing un s addled in a 
referendum on Nato membership. 
He won it against the odds after a 
debilitating campaign In which he 
was accused of being a turncoat 
Last year, facing a likely general 
election defeat and widespread disil- 
lusion, he managpfl to rally more 
votes than the Socialists had 
obtained an» their first landslide 
win in 1982. 

But bow many lives does Mr 
Gonzalez have? His government’s 
cxedibflity was already low before 
the scandals surfaced, having pre- 
sided over Spain’s worst economic 
slump for 30 years an d an official 
unemployment rate now nearing 
one in four. The party which gave 
stability to Spain's post-Franco 
democracy by securing an absolute 
majority in parliament is now a 
minority government. The only 
solid backing for Mr Gonzalez now 
comes mainly from pensioners, 
women and countryfolk. He has lost 
support among tiie young and in 
the cities and industrial centres. 

Even before this week’s resigna- 
tions, which have brought a distinct 
whiff of g o vernmental decomposi- 
tion. there was an aura of fin de 
rtgime. The Socialists probably 
expected to be beaten in last sum- 
mer’s general election. Their sur- 
prise win now looks increasingly 
likely to be a limited extension, like 
a football match playing into extra 
time. 

This does not mean the govern- 
ment has been inactive. A new eco- 
nomic team is pressing ahead with 
deregulation- A cautious refo rm of 
the country's notoriously inflexible 
labour laws - long talked about as a 
necessary prerequisite for job cre- 
ation, but never acted on until now 
- is in its final stages of parliamen- 
tary approval, overriding objections 
from the once-powerful trade 
unions. A rescue for Banco Espafiol 
de credito (Banesto), one of the tra- 
ditional pillars of tiie banking sys- 
tem, has been carried out with con- 
spicuous success. 

The fruits of what is now a tenta- 
tive economic recovery should 
become apparent next year, when 
most observers expect tiie employ- 
ment figures to start improving. 
But few would bet on the current 
administration lasting long enough 
to benefit from it 
The political discussion in Spain 
is not about whether the Gonzalez 


FINANCIAL TIMES WEEKEND MAY 7/ MAV 8 1994 

As the temperature rises over Spain’s 
corruption scandal, David White asks 
how many lives Gonzalez has left 



Struggle to keep 


the 



era Is rmmnp an end, but about 
when and how. Will Mr GonzAlez - 
who less than three months ago 
was turning down approaches to be 
put forward as the next president of 
the European Commission - end up 
Tfka Mr Betfino Craxi, the disgraced 
former socialist prime minis ter of 
Italy, who was caught up in bribery 
scandals? Will the Spanish Social- 
ists, the oldest political party in the 
country, cave in like their Italian 
partners or collapse electarally like 
the FTOnch Socialists on whose cam- 
paign they modelled their own 
when they came to power? Could 
they just implode, following the 
example of Spain’s previous govern- 
ing party, the Union of the Demo- 
cratic Centre (UCD) in 1982? 

For now, Mr Gonz&lez has shored 
up his position by securing pledges 
of support from Catalan and Basque 
nationalis ts who lead governments 
in their respective regions and form 
minority groups in the national par- 
liament The Catalan party Conver- 
gSncia i Uni6 alone has enough 
seats - 17 - to provide a narrow 
combined majority with the Social- 
ists. 

frs leader, the Catalan president 
Mr Jordi Pqjol, has come to the 
conclusion that no other govern- 
ment is possible in the current par- 
liament The conservative Popular 
Party (PP) has 141 seats, not far 
behind the Socialists' 139 but not 
enough to create an absolute major- 
ity even if both the Catalans and 


Basques switched camp. Mr Pujol 
who broadly s up p o rt s the govern- 
ment's policies, is therefore consid- 
ering only two options: stick with 
Mr GonzSlez or force new elections. 

In tiie owning months he will be 
able to call the shots. He flew to 
Madrid on Thursday morning to 
matp it riBgr to Mr Gonz&lez that 
his support depended on the govern- 
ment's performance in economic 
policy and ri paling with corruption. 

Gonzalez is not to be 
easily written off. 
He has come back 
and fought his way 
out of tight 
situations before ’ 


This understanding still leaves Mr 
Gonzfilez in a far from safe position. 
If more Cases Of SeriOOS financial 
wrongdoing involving senior figures 
emerge, the Catalans could take 
fright, not wanting to be seen In the 
eyes of their own electorate to be 
propping up a disreputable govern- 
ment in Madrid. 

Equally, the alliance with the 
Socialists could well come under 
strain later this year when tiie Cata- 
lans press for concessions in next 
year's budget Mr Josb Maria Aznar, 
the PP ‘leader, is reckoning on a 
general election between the 


autumn and next spring and would 
be the favourite to win it 

For aD Mr Gonzalez’s assurances, 
therefore, the climate of uncer- 
tainty is sure to r emain. Economic 
planners «nd business leaders are 
worried about the possible impact 
on investment which, would be seri- 
ous if the pol itica l crisis reached a 
peak before enactment of the labour 
market reform. 

What Is puzzling is the lateness of 
Mr Gonzalez’s response to the grow- 
ing evidence of corrupt practices 
and illicit gains. The past three 
years have seen a succession of 
embarrassing affair s. The brother of 
Mr Alfonso Guerra, then deputy 
prime minister, was accused of 
using his connections as well as a 
government office to farther his 
business interests. The next year, 
after Mr Guerra resigned from the 
government, a scandal broke over 
clandestine funds being paid to t he 
Socialist party by banks and compa- 
nies through a bogus consultancy. 
In 1992 Mr Mariano Rubio, then still 
Bank of Spain governor, was 
already involved in controversy 
over Ms links with a felled bank 
run by his stockbroker friend Mr 
Manuel de la Concha - a prelude to 
the present case involving charges 
of tax fraud and falsification 

The lack of firm action then, and 
seemingly slow reaction to the 
implications of the latest allegations 
have done no good to Mr Gonzalez’s 
image. Increasingly reclusive. 


shielded by an inner circle of court- 
iers. he has appeared paralysed, try- 
ing to play for time, resisting the 
pressure for heads to roll, wanting 
to wait for the European election. 
But the Mads have rolled anyway. 

More emblematic figures than 
those at the centre of the latest 
scandals would be hud to Imagine. 
Mr Mariano Rubio sored as vice- 
governor, then from 1984-92 as gov- 
error of the Bank of Spain, the ulti- 
mate guarantor of financial probity. 
The PtaSLOOO (£10) banknotes that 
bear Mr Rubio's signature are now 
subjects for mockery. The case is all 
the more poignant because Mr 
Rubio was a highly effective and 
respected governor. 

When he was reappointed in 1388, 
a column in the independent news- 
paper Dioxin is spoke effusively of 
Mr Rubio as befog “endowed with 
an innate sense of rectitude, oblivi- 
ous to any petty political ambition, 
impermeable to the siren-songs of 
the private sector”. Re was “a great 
public servant in the best sense of 
such a bastardised word”. Trusting 
him was one thing Mr Gonzfilez had 
done well. How ironic that the 
author was Pedro J Ramirez, now 
editor of El Mundo, the paper that 
led the latest allegations about Mr 
Rubio's undeclared investments. 

And then there is Mr Luis RoldStn, 
first civilian chief of the Civil 
Guard, the ultimate symbol of 
authority in Spain, renowned for its 
acute sense of honour, in the front- 
line of the fight against Basque ter- 
rorism and extortion. 

This is not the first time the force 
Vn >5 made headlines in an unfortu- 
nate way. In the attempted military 
coup of 1981, the image of a handle- 
bar moustached lieutenant-colonel 
in a tricorn hat brandishing a gun 
in parliament reflected a comic- 
opera version of Spain. The prepos- 
terous saga of Mr Roldfin and his 
property purchases, the allegations 
about bundles of cash being carried 
in and out of bis office, his extrava- 
gant gifts to a woman friend, and 
his unimpeded getaway have pro- 
vided a mix of farce and melo- 
drama. 

C orruption is nothing 
new in Spain, however. 
Although Mr Gonzales 
elegantly focused on 
present and future 
cases rather than digging up the 
past, it was definitely widespread in 
the Franco regime. But corruption 
certainly also flourished in the 
boom period of the late 1980s, when 
Socialist politicians had become 
entrenched in positions of power at 
i preii regional and national levels. 

The recent disclosures have pro- 
voked a flood of public venom. At a 
time of continuing economic hard- 
ship, the jokes are mixed with fierce 
resentment, in which sheer envy of 
wealth is a strong element Span- 
iards are not bothered about sexual 
peccadilloes like the British, but 
they are bothered about other peo- 
ple’s money. Reaction to the Rubio 
affair has come dose to that ,ofji 
lynch-mob. When the 62-year-old 
former governor turned up to 
answer questions at a prosecutor’s 
office, he was greeted by shouts of 
“cad”. However, he may have done 
nothing that was not common prac- 
tice a few years ago, and the rules 
at the time did not stop a Bank of 
Spain governor from investing in 
stocks. Mr Rubio believes he is 
being made a scapegoat 
The most positive construction 
that can be put on these tumul- 
tuous events in Spain is that they 
may help to instil more morality 
into public life. They could have a 
cathartic effect But whether there 
is any salvation In this for Mr Gonz- 
alez is more doubtful- 


Man IN the NEWS: Thabo Mbeki 


Cool, calm 
and selected 


T o be a heartbeat away from 
the presidency Is seldom a 
position of real promi- 
nence. But it carries a spe- 
cial. even awesome, significance 
when the president is 75 and the 
country in question is South Africa. 

Mr Thabo Mbeki is now in the 
limelight, though not yet centre 
stage. As first executive vice-presi- 
dent and deputy to Mr Nelson 
Mandela, the leader of the African 
National Congress who becomes 
South Africa’s president on Tues- 
day, it is not surprising that he now 
attracts more scrutiny. 

Given the stature of Mr Mandela, 
the job of filling his shoes is well 
nigh Impossible. But if anyone can 
provide the reassurance and conti- 
nuity tbat his demise would 
require, it is this urbane 55 year old. 

For nearly 20 years, the soft-spo- 
ken Mr Mbeki. with grizzled grey 
beard and pipe to hand, has been, 
for many in the west, the acceptable 
face of South African black nation- 
alism. Well before it was respect- 
able to be seen in public with the 
ANC. some South African business- 
men and Western diplomats estab- 
lished private links with a man who 

dearly would make his mark In a 
post-apartheid South Africa. 

His credentials are impeccable. 
The son of the revered ANC patri- 
arch Mr Go van Mbeki, fellow pris- 
oner of Mr Mandela, he won his 
political spurs in the ANC Youth 
League, which he joined in 1956. 
During a short period underground 
after the ANC was outlawed in I960, 
he was national secretary of the 
African Students Association. 

In exile from the early 1960s, he 
put the ANCs case during postings 
in London, Botswana, Swaziland, 
Nigeria and Zambia. Between 
S£? yn P ts ‘ h© go* his MA in eco- 
“mucs from Sussex University and 


underwent military training in the 
Soviet Union in 1970. 

None of this extraordinary and 
sometimes dangerous past shows. 
Mbeki, whose demeanour might 
suit the senior common room of an 
Oxbridge college, for years quietly 
defended the legitimacy of the 
ANCs armed struggle against white 
rule and pressed eloquently for the 
imposition of sanctions. 

Appointed to the ANCs national 
executive in 1977, he climbed 
steadily In the liberation move- 
ment’s hierarchy. In 1978 be became 
political secretary in the office of 
the then-president, Oliver Tambo. 
who died last year. He added the 
post of ANC director for informa- 
tion to his responsibilities shortly 
afterwards. In 1985 he advanced his 
standing in the party after the 
ANC’s congress in the northern 
Zambian town of Kabwe, becoming 
secretary for presidential affairs 
and winning a place on the ANC 
organ overseeing its underground 
activities, the politico-military coun- 
cil. 

But it was as head of the ANC’s 
department of International affaire, 
which he took up in 1989. that he 
made his mark. In his dealings with 
foreign governments he avoided tiie 
revolutionary rhetoric of some col- 
leagues and remained firm in the 
belief that a negotiated settlement 
was possible. He set out to promote 
the ANC, often seen in the west as a 
“terrorist" movement to use the 
phrase of former British prime min- 
ister Mrs (now Lady) Thatcher, as a 
pragmatic movement. A senior 
western diplomat dispenses high 
praise: “Whenever the ANC put its 
foot in it, which was often, Thabo 
was on hand to extract it" 

This experience served him well 
in what was to be his key role in 
South Africa's transition to democ- 


Sr*? 

T 4*-. 



racy. The talks which brought this 
about can be traced back to a meet- 
ing in a Zambian game park in 1985. 
It was then that, with the backing 
of former Zambian president, Mr 
Kenneth Kaunda, a delegation of 
top South African businessmen, led 
by the ex-chairman of the Anglo 
American Corporation, Mr Gavin 
Relly, flew to Zambia for discus- 
sions with the ANC. 

Within a short time the visitors 
had co Deluded that Mr Mbeki and 
his colleagues, including the late Mr 
Chris Hani. were politicians with 
whom they could do business. 

Further meetings followed in 
other centres from Senegal to Lon- 
don. They involved not only South 
African businessmen but academ- 
ics, journalists, church leaders and 
pillars of the Afrikaner community. 
The latter risked, and in some cases 
received, a public denunciation 
from South Africa’s then-president 
the cantankerous Mr PW Botha. 
The composition of the ANC delega- 
tions would change, but the figure 


almost always at the heart of the 
talks was Mr Mbeki 

On his return to South Africa 
after Mr Mandela’s release in 1990, 
he was first contrasted with Hard, 
the former leader of the Sooth Afri- 
can Communist party who had a 
powerful constituency among the 
country’s alienated youth. Follow- 
ing Haiti's assassination Mr Mbeki's 
main rival became Mr Cyril Rama - 
pbosa, the ANC secretary general 
who had a cut his political teeth in 
the rough and tough environment 
of strikes and stayaways when he 
led the National Union of Mine- 
workers. 

No less eloquent than Mr Mbeki, 
it seemed Mr Ramaphosa’s role as 
the ANCs prime negotiator in the 
constitutional talks, and his talent 
as a hard-nosed political inflghter, 
would make him a strong candidate 
for the number two job. 

Mr Mbeki, who sometimes 
appeared more comfortable in 
boardrooms than at political rallies, 
was criticised in some quarters for 
his apparent reluctance to Involve 
himself in grassroots politics. Yet to 
the surprise of many, Mr Mbeki was 
endorsed by the ANC Youth League 
when he made his successful bid for 
chairmanship of the ANC in 1993. 
This support may well have swung 
the balance in his favour in tha 
contest for the deputy president- 
ship, while Mr Ramaphosa decided 
to decline a cabinet post and con- 
centrate on strengthening the 
ANC’s organisation. 

One of Mr Mbeki’s erstwhile 
adversaries in the De Klerk govern- 
ment, now an admirer who sat 
opposite him in the delicate behind- 
the-scenes encounters which opened 
the way to formal talks, remarks: 
“He is one of the toughest, most 
able negotiators I have dealt with.” 

Says another government negotia- 
tor. “His ability to maintain his 
ANC credentials while accommodat- 
ing white fears was a key factor in 
the whole process.” 

Michael Holman 

and Mark S uzman 



TAGHeuer 









FINANCIAL TIMES WEEKEND MAY 7/MAY 8 1994 


9 


T he world peered into a 
currency abyss for a 
brief period this week. 
Until 17 central 
banks came charging to the 
rescue on Wednesday, the dol- 
lar, the world's most important 
trading and investment cur- 
rency, appeared threatened 
with free fall. 

It was heading towards 
record low levels a gainst the 
Japanese yen and appeared 
well on coarse to go below the 
psychologically important Y100 
barrier. Piercing such a "big 
number” would have pushed 
the greenback into uncharted 
territory. It would have been 
easy to imagine large investors 
unloading their dollar holdings 
in panic-stricken trading condi- 
tions in an attempt to stem 
ever-greater losses. 

In the event, an estimated 
83bn of concerted central bank 
intervention at the behest of 
the US Treasury, and yester- 
day’s announcement of stron- 
ger than expected US employ- 
ment growth in April, stopped 
the rot By yesterday evening 
the immediate threat of a dot 
lar crisis had receded. 

But the dollar could easily 
test the nerves of traders and 
policymakers in the days and 
weeks to come. Measured 
against the currencies of Amer- 
ica's leading trading partners 
it is not Car from its all-time 
low of August 1992. Its sharp 
decline against the yen since 
President Bill Clinton took, 
power in January 1992 has 
unsettled currency watchers. 
For some, the dollar’s recent 
performance has brought back 
uncomfortable memories of the 
term of President Jimmy 
Carter, the previous Democrat 
to occupy the White House, 
when the dollar weakened so 


Mercy mission for money trouble 

Peter Norman assesses the first round in defence of the dollar 


US dollar; fending off a free fall 

44A v 

. 5U& WF - V?1 13 I* ijiV % 


Doflar against Yen (WS) 
130 

329 



Sourra OttaatraaBi 


much as to require a large- 
scale international rescue. 

The widespread and ostenta- 
tious nature of Wednesday's 
central bank purchases of dol- 
lars for D-Marks and yen testi- 
fied to the concern of a possi- 
ble dollar free fall in central 
hanks and finance minis tries 
around the globe. 

A slumping dollar would be 
bad news for the US and 
Japan, the two main protago- 
nists in the currency's recent 
drama, and pose serious prob- 
lems for Britain. Although the 
Bundesbank and other conti- 
nental European central banks 
joined in the Intervention, the 
dollar's weakness appears to be 
less of a threat to Germany 
and the economies closely 
Hnirpri to Germany through the 
European exchange rate mech- 

aniCTfi- 

A sharply lower dollar would 
hit an already weak US bond 
mar ket. The accompanying 
chart shows how US bond 
yields have soared since the 
hgginwiwp of this year. Sugges- 
tions were circulating in the 
financial markets this week 
that a dollar free fall would 
prompt Japanese holders of US 
Treasury bonds to start liqui- 
dating their investments, forc- 
ing long-term interest rates 
fro wn higher, 

A further sharp rise in the 
yen against the dollar would 
cause serious problems for the 
Japanese economy by weaken- 
ing its international competi- 
tiveness. Japan’s recovery 
from its most serious postwar 
downturn is still far from 
assured, hi contrast to previ- 


ous periods of yen strength, 
Japan faces increasingly tough 
competition from the countries 
of south-east Asia. 

Britain, like the US, would 
have cause to worry about the 
impact of dollar weakness on 
its bond- market As the chert 
shows, the yields for govern- 
ment gilt-edged stock have 
risen even more sharply than 
those for comparable US Trea- 
sury bonds this year. Anxiety 
about the effects of a dollar 
collapse on the gilt-edged mar- 
ket was an important reason 
for the Bank of England deci- 
sion to join in dollar support 

Even before the central 
hankc had started to intervene, 
tlw Bundesbank bad declared 
that too strong an appreciation 
of the D-Mark against the dol- 
lar was “not in the interests” 
of the German economy. 
Although there is growing opti- 
mism that Germany is starting 
to recover from recession, the 
economy is stfil fragile and any 
increase in competitive pres- 
sures on export markets would 
be unwelcome. 

However, in some respects 
rtig Bundesbank anri other con- 
tinental central banks have 
less cause to worry about the 
dollar than the Bank of 
England. C ontine nt a l interest 
rates are less entwined than 
UK rates with those of the US. 
A series of small cuts in offi- 
cial rates this week showed 
that continental interest rates 
are stfll heading downwards in 
recognition of the more 


depressed state of the region's 
economies. 

The dollar’s decline so for 
this year has been as much a 
surprise as a worry for policy- 
makers and pundits. At new 
year, *hp general expectation 
was that it would appreciate in 
value to reflect the stronger 


growth performance of the US 
vis-a-vis its trading partners 
and the near certainty that US 
interest rates would rise. 

Consensus Economics, a 
London -based company that 
regularly polls forecasters in 
more than 30 countries, 
reported the general expecta- 


tion that the dollar would be 
valued at Y112.1 and DM1.75 
around Easter and Y114£ and 
DMl.78 by the end of the year. 
When the central b anka 
bought dollars this week the 
US currency was at DM1.6570 
and Y101.2. 

Since January the US has 


continued to register strong 
growth and the authorities 
have pushed interest rates 
higher, lifting the federal funds 
rate to 3.75 per cent from 3 per 
cent between the beginning of 
February and April IS. 

But as the char t shows, this 
period of Fed tightening bas 
coincided with a considerable 
dollar depreciation against the 
yen while it has also weakened 
against the D-mark. 

According to Mr Paul Chert- 
kow. head of global currency 
research at Union Bank of 
Switzerland, this decline can 
be traced to the impact on 
speculative investors of the 
Clinton adminis tration’s tough 
trade policy against Japan. 
These investors, which 
included lightly regulated 
‘hedge funds', had built up 
speculative positions In the 
dollar in anticipation of it ris- 
ing against the yen. 

When President Clinton and 
the former Japanese prime 
minister Mr Morihiro Hoso- 
kawa foiled to settle US-Japa- 
nese trade disputes in Wash- 
ington at a meeting on 
February 11, the markets sold 
the dollar in the belief that the 
US wanted to force Japanese 
concessions through a higher 
yen. Their interpretation was 
supported by President Clin- 
ton’s statement that the US 
was seeking “objective crite- 
ria" to judge progress on trade 
which might encompass 
exchange rate variables. 

More recently, the markets 
were confronted with the gov- 
ernment of Mr Tsutomu Hata, 
Mr Hosokawa's successor. This 


is so weak that it cannot be 
relied upon to meet US 
demands to open its markets 
or boost its economy. The nat- 
ural instinct of traders and 
investors has been to sell the 
dollar and bid up the yen. 

The events of the past week 
and the declaration of Mr 
Lloyd Beufcsen, the US Trea- 
sury Secretary, that the US 
sees "no advantage in an 
undervalued currency" could 
mark a turn of the tide. If 
investors believe the US 
administration has experienced 
a change of heart, the dollar 
may yet be saved 

B ut that is a big HF. 
According to econo- 
mists at S G War- 
burg. the UK invest- 
ment bank, there are signs that 
the one-time bullish consensus 
about the dollar is cracking. 
Mr Jim O'Neill, bead of global 
research at Swiss Bank Corpo- 
ration in London and a long- 
time dollar bear, points out 
that the US current account 
balance of payments is moving 
deeper into the red as the econ- 
omy recovers. The overall US 
deficit between I9M and 1993 
was Sl,Q25bn. “There is no his- 
torical experience or a country 
continuously running current 
account balance or payments 
deficits without ultimately 
rather negative results for the 
currency," he says. 

At tbe end of a turbulent 
week, the world's central 
banks appear to bave won the 
first round in defence of the 
dollar. But they only bave to 
think back to tbe crises of 1992 
and 1993 in the European 
exchange rate mechanism to 
recall that there is a big differ- 
ence between winning a battle 
and winning the war. 


The Tories’ dire election result may spell 
ruin for Major, says Philip Stephens 

On the ropes 
but still fighting 



egy bas rested on 1 he premise that the 


I t's simple, explained one of Mr 
John Major’s erstwhile supporters 
at Westminster. Conservative MPs 
had only to decide whether the 
prime minister could lead them to vic- 
tory in another general election. If, mw 
the votes had been counted for the June 
9 European elections, the answer was 
No (and he fully expected it would be), 
they would replace him. Ruthless 
maybe, but then the Tory party had 
never worried too much about spiffing 
its leaders' blood. 

Politics, of course, is never that arm , 
pie. As they surveyed the devastation 
wrought by Thursday’s local elections, 
some in Mr Major’s embattled govern- 
ment were drawing an altogether more 
sombre conclusion. The question was 
not whether the prime minister could 
recover, but whether a divided and 
embittered Conservative party could 
sustain any leader in office. 

Nobody in the Tory party expected 
good results this week. But tbe scale of 
the defeat blacked out any remaining 
shafts of light The 100 or so Conserva- 
tive MPs who regard their seats as mar- 
ginals did not need a calculator to work 
out that a much smaller swing against 
the government in a general election 
would pitch them into the dole queues. 

It was an across-the-board revolt. 
Middle-class disgust in Tonbridge Wells 
was mirrored by working-class anger in 
Croydon and Basildon. Tbe Conserva- 
tive share of the vote, put by the BBC 
at 27 per cent, was the lowest this cen- 
tury, leaving the government alongside 
the Liberal Democrats. 

There were no doubts at Westminster 
as to why- Badly bruised by recession 
and angered by broken promise over 
taxes, the voters took their revenge an 
a party which prefers to devote his 
energies to faction-fighting over Europe 
than to offering competent government 
So the election saw tactical voting on 
a massive scale. In those areas where 
Labour had the best chance of defeating 
the Conservatives, people put their 
crosses against Mr John Smith 's red 
rose. Where the electorate judged the 
Liberal. Democrats could best deliver 
the requisite bloody nose, Mr Faddy 
Ashdown triumphed. 

The result, taken with last year’s dev- 
astation in shire counties' elections, has 
been to wipe the Conservatives off the 
local government map. 

There were scattered crumbs of com- 
fort The voters of Wandsworth and 
Westminster kept faith. More impor- 
tantly, Labour did for less well nation- 
ally than suggested by its high-profile 
successes in London's suburbs. 

Winning 42 per cent of the vote 
nationwide at this stage of the electoral 
cycle does not point to a resounding 
Labour victory in a general election. Mr 
Smith bas been complacent His strat- 


Conservatives wul do bis job for him. 

But what the results demonstrated is 
that a Tory defeat does not translate 
automatically into a Labour victory. 
Labour needs to score 45 per cent or 
more of the vote in such mid-term elec- 
tions if it wants to secure an overall 
majority in parliament 

The Liberal Democrats, by contrast, 
could be forgiven 
their self-congratula- 
tion. Their 27 per 
cent share of the 
total was better than 
at any time since the 
halycon days Of the 
old SDP/Alliance in 
the early 1960s. 

The party took 
swathes of seats off Labour as well as 
the Conservatives. If the Liberal Demo- 
crats still struggle to be heard on the 
national stage, their credentials as a 
party of local government can no longer 
be disputed. 

But for the next five weeks - perhaps 
the next five months until a formal 
leadership contest ' in November - poli- 
tics will be overwhelmingly a story 
about the Conservatives. The elections 


to the European parliament threaten 
further catastrophe. So, too, does the 
Eastleigh by-election In which Mr Ash- 
down is now set fair for a spectacular 
victory. 

If Conservatives were prepared to 
rebel or stay at horn in such numbers 
this week, how much easier it win be 
for them to exact further revenge on 
June 9. Some Tory voters demonstrated 
that they still care 
about who runs their 
local town hall; they 
are likely to be for 
less concerned about 
who represents them 
in the more remote 
Strasbourg assembly. 

The Conservative 
manifesto sidesteps 
the irreconcilable divide in the party 
over Europe. It manages to wave the 
Union Jack for the Eurosceptics while 
appeasing the pro-Europeans by sound- 
ing positive about Britain’s agenda for 
the Union. 

But Mr Douglas Hurd's elegant prose 
provides the appearance rather than 
tbe substance of unity. After Mr Mich- 
ael Portillo’s ill-judged remarks this 
week about the dangers of a single cur- 


It may be that 
this week the 
Conservatives 
passed the point 
of no return 


rency, it is hard to imagine that tbe rift 
will not reopen during the European 
campaign. 

A few weeks ago senior Conservatives 
were encouraging speculation that the 
party might see its representation in 
the European Parliament foil from the 
present 32 seats to fewer than a dozen. 
The actual outcome - perhaps 20 seats 
- would then be treated as a pleasant 
surprise. Now they have started to 
believe their direst predictions. 

Mr Major knows the European elec- 
tion will be treated as a more telling 
referendum on bis premiership. His 
combative c omm ents on the steps of 10 
Downing Street were explicit confirma- 
tion that he expects a formal chall enge 
to his leadership in the autumn. 

But his strongest enemies - a motley 
but daily more powerful bunch of right- 
wing malcontents, passionate anti-Euro- 
peans, and anonymous figures from 
marginal seats - want to precipitate the 
crisis well before then. If the European 
results are as bad as they fear, they 
want Mr Major out by the end of June. 

The prime minister still has cards to 
play. The pretenders in his cabinet - 
Mr Michael Heseltine, Mr Kenneth 
Clarke and the youthful Mr Portillo - 
cannot precipitate a crisis without 
wrecking their own chances. 

A post-election cabinet reshuffle 
might buy him more time . For different 
reasons, all in the cabinet but Mr 
Heseltine, tbe near-certain winner in 
any leadership contest, may well judge 
that their personal political fortunes 
are best served by sustaining Mr Major 
rather than by removing him. 

The Eurosceptics are divided as to the 
wisdom of swapping Mr Major for Mr 
Heseltine. Some are naive enough to 
believe that Mr Heseltine's pro-Euro- 
pean instincts can be reined in. Others 
will never forgive him for destroying 
Margaret Thatcher’s premiership. 

The outcome may depend on Mr 
Major's pyschological make-up. IQs 
strongest card is the threat not to go 
quietly; to fight to the end whatever the 
consequences for the party. The calcu- 
lation his enemies would then have to 
makp would be whether removing him 
would be more damaging than keeping 

trim. 

A close friend insisted that, if neces- 
sary, the prime minister would play 
that card. Mr Major was convinced that 
he had a better chance than any rival of 
holding together his party. He had 
grown more resilient than anybody 
realised. 

Another confidant took an entirely 
different view. If tbe anti-Tory tide bad 
not receded by June 9, he judged, Mr 
Major would "walk". The unthinkable 
alternative would be a “bloodbath". It 
may be, though, that this week the 
Tories passed the point of no return. 


L u Ping, China's urbane 
official in charge of 
Hong Kong affairs, has 
not had an easy week. 
On his first visit to Hong 
Kong in nearly two-and-a-half 
years, Mr Lu, 67, has been pil- 
loried by the colony's press for 
his refusal to meet Governor 
Chris Patten. To add insult to 
injury, he has had to use tra- 
desmen's entrances to avoid 
the media. This is not the way 
a fall member of the Chinese 
Communist party’s central 
committee would expect to 
conduct himself when inspect- 
ing his area of responsibility. 

Mr Patten, for his part, has 
not missed an o pportuni ty to 
take the moral high ground - 
even though Mr La's decision 
not to pay him a call still 
amounted to a snob. "We 
would like Director La’s visit 
to Hong Kong to be so enjoy- 
able and successful that he 
comes back many times,” Mr 
Patten said yesterday. 

Mr Lu's visit was ostensibly 
to attend a ceremony marking 
the Bank of China’s first issue 
of bank notes in the colony, 
and for meetings of the Pre- 
liminary Working Committee 
(PWC), a group of mainly 
Hong Kang businessmen and 
mainland officials, ret up to 
discuss post-1997 issues. 

But Mr La’s journey to Hong 
Kong is also meant to reassert 
his authority over China's 
Hong Kong policy - under- 
mined by his long absence - 
and to signal an important 
shift in attitude. Beijing is 
shelving its policy of non-co- 
operation with Britain on 
Hong Kong affairs, which 
reached its height last year 
during talks on the colony's 
political development, and 
substituting a policy of selec- 
tive co-operation. As Mr Tsang 
Yok-siug, chairman of the 
Democratic Alliance for the 
Betterment of Hong Kong, a 
pro-Beijing political party, 
puts it “Beijing realises that 
they cant cut all contacts with 
the UK and Hong Kong gov- 
ernments and achieve a 
smooth transfer of sovereignty 
in 1997.” Mr Tsang, also a 
leading member of the PWC, 
beUeves China has also given 
up hope of seeing Mr Patten 
recalled to London. 

This reasoning seems to 
strike a chord with the British 
Foreign Office. “We have made 


China’s 

walls 

weaken 

Simon 

Holberton on 
the Hong Kong 
visit of a top 
Beijing official 

more progress on practical 
issues in the past six weeks 
than we have In the past two 
years," says one official. 
Illustrating this improvement 
in relations are the current 
talks about financing Hong 
Kong’s new airport. Hopes 
have risen within the Hong 
Kong government that a work- 
able agreement on financing 
the rauM-MHion-dollar project 
can be worked out before the 
Legislative Council (LegCo) 
rises for the summer recess in 
early July. 


Beijing is shelving 
its policy of 
non-co-operation 
with Britain on 
Hong Kong affairs 

On Wednesday - a day after 
Mir Lu said: “1 believe that we 
can reach an agreement on the 
airport acceptable to both 
sides” - China requested a for- 
mal meeting of the Joint Liai- 
son Group’s Airport Commit- 
tee, the body charged with 
resolving the differences 
between the UK and China 
over airport finances. 

Further underlining China’s 
interest in Hong Kong’s con- 
tinuing prosperity, Mr La 
found time to dine with some 
of the wealthiest local busi- 
nessmen: Mr Li Ka-shing, 
chairman of two of Hong 
Kong’s biggest companies; Mr 
David U, chief executive of the 
Hank of East Asia; Mr Stanley 
Ho, Macao's casino tycoon; 
and Mr Cheng Yu-tong, chair- 


man of New World, the prop- 
erty and construction com- 
pany. “Mr Lu is confident and 
in good spirits. It seems to me 
that he's enjoying all the trap- 
mgs which go with his office - 
the police outriders and the 
reporters chasing him,” says 
one businessmen who dined 
with the Chinese visitor. 

In terms of concrete achieve- 
ments, Mr David Chu, a prop- 
erty developer who sits on the 
PWC, indicated that some pre- 
viously intractable subjects 
might now be easier to 
resolve. He cited plans for a 
new Court of Final Appeal, the 
future use of military territory 
in the colony, and some dvfl 
service matters as examples of 
where co-operation may now 
he possible. 

But in spite of the new prag- 
matism, PWC members are 
adamant that the UK has lost 
influence by pursuing what 
they describe as a path of con- 
frontation over Hong Kong's 
political development Mr Chu 
says Britain's view will not 
now be sought on who should 
be the colony's first post-1997 
“chief executive”; nor will 
China consult the UK on the 
appointment of the top 20 or 
so senior mandarins. 

Nevertheless Mr Lu, address- 
ing businessmen yesterday, 
stressed that China would act 
in accordance with the Basic 
Law - its mini-constitution for 
Hong Kong, drawn up in con- 
sultation with the UK - when 
it resumes sovereignty. This 
suggests that fears of China 
taking a still tougher stance 
post-1997 are unfounded. 

From Mr Patten’s point of 
view, the resumption of Sino- 
British co-operation may 
appear a vindication of his 
stance on political develop- 
ment, for which Britain’s lack 
of involvement in the choice of 
his succesor - never likely to 
have been great - is a small 
price to pay. 

For their part, however, the 
Chinese remain sensitive to 
the idea that Mr Lu’s visit is a 
tactical victory for Britain - 
and Mr Patten was careful to 
avoid public triumphalism. 

He is confident of meeting 
Mr Lu later this year. But that 
may be wishful thinking by a 
governor feeling the strains of 
China’s boycott. Mr Patten 
may remain beyond the pale 
for the next three years. 


Central banks defending 
the indefensible by 
supporting currencies 


LETTERS TO THE EDITOR 

Number One Southwark Bridge, London SE1 9HL 
Fax 071 873 5938. Letters transmitted should be clearly typed and not hand written. Please set fax for finest resolution 

must not be wasted 


Predicting project costs 


From Dr Rosalind M Aitmann. 

Sir, Do the central banks 
never learn? Costly currency 
interventions were to no avail 
in saving sterling, the French, 
franc or other minor Euro cur- 
rencies. Now we see the US 
Federal Reserve and others try- 
ing to stop the dealers from 
driving the dollar down (“Cen- 
tral banks step in to defend 
May 5). 

On past evidence it is hard to 
see why the central banks 
should be successful in fight- 
ing the trend this time. The 
foreign exchange markets have 
just become too huge to be 
defeated. 

In a world of floating 
exchange rates, currency over- 
shooting is inevitable. “Funda- 
mentals" are irrelevant to 
short-term speculators. They 
see quick profits based on mar- 
ket psychology, not economic 
logic. 

The problems Is that the 
speculators - or rather the 
attempts to fight them - can 
force a change in the funda- 
mentals themselves. For exam- 


ple, at the moment US authori- 
ties fear that dollar depreda- 
tion will detear foreign buyers 
of US bonds, causing a rise in 
US long rates and inhibiting 
economic recovery. 

But, by trying to. fight a fell- 
ing currency, they may force 
short rates to rise too much. 
This in itself, could produce 
the very rise in long rates and 
weaker growth, which, they 
want to avoid! 

If central banks could just 
accept that they cannot fight 
these short-term trends and let 
the speculation fizzle out the 
traders will eventually move 
on to a new game. 

The “fundamentals" clearly 
favour a stronger dollar and, 
by accepting that fighting the 
contrary currency movements 
short-term could be counter- 
productive, the central banks 
may have better success in 
managing their economies in 
tbe long term. 

Rosalind M Aitmann, 

9 Fairhobne Close, 

London, 

N3 3EE 


Resources 

From Lady Howe. 

Sir, The results of the Insti- 
tute of Management's survey 
showing a redaction in the 
number of women in manage- 
ment are not entirely surpris- 
ing (“Women turn away from 
careers in management", May 
3). The message from female 
managers Is clear, unless com- 
panies shape up and change 
typical, male-dominated work- 
ing practices and environ- 
ments, women will vote with 
their feet and opt for more flex- 
ible, family-friendly working 

t^M^ m jnmfipts . 

Two hundred and forty 
organisations, representing 
more than a quarter of the 
British workforce, are cur- 
rently members of Opportunity 
2000, the business-led cam- 
paign to help com pani es max- 
imise women’s skills and avoid 
wasting resource and ability. 
While they realise there is still 
a great deal to be done, these 
organisations are recognising 


the true business value of their 
female employees. They are 
implementing a number of 
measures to increase the qual- 
ity and quantity or their partic- 
ipation in the workforce, 
includin g job-sharing schemes, 
part-time work and providing 
assistance with childcare, 
either through voucher 
schemes or on-site facilities. 

Unless more companies fol- 
low this example, British busi- 
ness will continue to lose 
money, time, efficiency and the 
skills and resources of half its 
workforce. 

Elspeth Howe, 
chairman. 

Opportunity 2000 Target Team, 
Business in the Co mm u nity. 

8 Stratton Street, London W2 

From Ms Hedda Bird, 

Sir, We hear that fewer 
women than ever are num- 
bered among senior British 

ynanftg ftrfi. 

Recently, while awaiting a 


delayed night from Edinburgh 
to Heathrow, I sat near the 
telephones in the Shuttle 
lounge. Over the next two 
hours a stream of businessmen 
phoned their wives/secretaries/ 
girlfriends to rearrange what 
time they were to be collected, 
postpone dinner appointments. 
and “be taken straight to the 
opera house”. One man spoke 
to his p-hiTd, a similar proces- 
sion of businesswomen phoned 
their nannigs /cbildnilnderfi and 
mothers to re-arrange chil- 
dren’s tea, bath and bedtime. 
Most of the women talked to 
the children, explained why 
they were going to be late and 
offered reassurance, and com- 
fort. 

This Is hardly a random sam- 
ple but on reflection I pity the 
men - no wonder we women 
start our own businesses. 
Hedda Bird, 
managing director. 

Conservation Papers. 

228 London Road, Reading 


High cost of 
languages 

From Mr Hilary Chapman. 

Sir, Your leader, “Europe's 
parliament” (May 3) drew 
attention to some of the proce- 
dural reforms necessary within 
the European Parliament if it 
Is going to earn greater credi- 
bility. 

Surprisingly, you made no 
mention of the huge cost of 
multilingualism within that 
institution. 

When Austria, Sweden, Fin- 
land and Norway become full 
members of the European 
Union, three further working 
languages will be added, 
increasing even further the 
cost of translating and inter- 
preting. 

Surely a case for Esperanto? 
Hilary Chapman, 

8 Vardre View, 

Pentywyn Road, 

Degamoy, 

Camay, 

Gwynedd LL31 9TE 


From Mr A D Maunder. 

Sir, Andrew Taylor 
(“Founds, pioneers and more 
pounds", May 3) gives some 
interesting examples of capital 
cost growth. 

The Rand Corporation of the 
US carried out a report for the 
US department of energy on 
final cost against first detailed 
estimate for a variety of large 
pioneer construction projects. 
On average it was more than 
two times higher. Further 
effort was applied to analysing 
cost growth and performance 
shortfall for energy plants in 
terms of the amount of new 
technology, complexity, state 
of process development and the 
thoroughness of scope of the 


From Mr Charles Spink. 

Sir, “The clock starts to tick 
for Major" (April 30). Can it 
really be true that . .fatalis- 
tic speculation permeates every 
[my italics] conversation 
among the journalists, minis- 
ters, and Tory backbenchers 
who daily fill the restaurants 
around Westminster”. 

And then again: "Back in the 


initial estimate. In the third 
part of the work, a systematic 
method was developed to 
enable application of the tech- 
nique to future examples, to 
predict a final cost ratio 
together with a standard devia- 
tion. 

We used this method for pro- 
cess plants quite successfully 
in my previous company. The 
problem, however, always 
remains that, when asked to 
make a judgment, people tend 
to gravitate towards their opti- 
mistic notions and the results 
of these careful calculations 
are not always well received. 
Tony Maunder, 

19 Fembrook Road, 

Caversham, Reading RG4 7HG 


restaurant, the minister wants 
first to know. . 

Are ministers really such 
washerwomen - or is this just 
a case of over-enthusiastic 
reporting? 

Charles Spink, 

10 HeatkfiekL 
Morpeth, 

Northumberland, 

NE612TR 


Speculation in Westminster 





COMPANY NEWS; UK 


B& J board agrees to £56m 
cash injection from Pepkor 



Christo Wiese: keeping track of B&J for several years 


By Andrew Bolger 

Pepkor. South Africa's biggest 
retail group, last night 
ffHnrhcri a deal to Inject up to 
£S6m into Brown & Jackson, 
which owns the lossma ki n g 
Pounds tretcher chain of dis- 
count retailers. 

The recommended agree- 
ment gives the South Africans 
an option to take a 63 per cent 
stake in B&J, if they put in the 
full amount The chain of 230 
Pounds tretcher outlets would 
eventually be combined with 
the 45 clothing outlets, Your 
More Stores, which Pepkor 
already owns in Scotland, 
creating the UK's biggest dis- 
count retail chain. 

The Pepkor offer is being rec- 
ommended by B&J's board, 
even although it last month 
recommended a rescue offer 
from the Weisfelds, the million- 
aire couple who created the 
What Everyone Wants dis- 
count clothing chain. 

B&J shareholders ware due 
to vote at an EGM on Monday 
to approve the Wei&feld plan. 
That meeting will go ahead, 
but the first item will be a 
motion to adjourn until share- 
holders can consider the latest 
offer. Mr Gerald and Mrs Vera 
Weisfeld had offered to 
Injected an initial £6m to 
meet B&J’s Immediate working 
capital needs In return 
for a 19 per cent stake 


and two seats on the board. 

Pepkor will make no offer to 
existing shareholders. In 
exchange for their cash, the 
South Africans win receive a 
mixture of new shares and 
loan notes. They will inject an 
initial E20m to pay off trade 


creditors and remove B&J from 
the control of its banks. 

The agreement was only 
reached after the market 
closed, following a day of fran- 
tic negotiations in Guernsey, 
where the South Africans set 
up an offshore holding com- 


pany. B&J’s shares closed yes- 
terday Up higher at 6%p, valu- 
ing the group at £43hl 

Mr Christo Wiese, Pepkor’s 
executive chairman, said the 
group owned 1,700 stores In 
southern Africa and employed 
40,000 people. It wanted to 
diversify internationally and 
had been keeping track of B&J 
for several years. 

He said: “B&J in its present 
state requires decisive and 
immediate action, including 
the full Initial injection of 
£20m contained in the Pepkor 

proposal, 

"Considerable work is 
required after that to return 
the business to profitability.” 

Of the Weisfelds* offer, Mr 
John Jackson, B&J chairman, 
said that he believed that Pep- 
kor represented “a better 
option to secure the long-term 
future of the Brown & Jackson 
group while providing value to 
existing shareholders.” 

Pepkor denied rumours that 
the deal involved Mr Philip 
Green, the controversial for- 
mer rfifllrman of Amber Day, 
which bought WEW freon the 
Weisfelds in 1990. Mr Green is 
now r unning the privately- 
owned Xception chain of dis- 
count stores. 

Mr Wiese said: “We have 
known Philip for years, work- 
ing as we do In the same busi- 
ness, but this is our deal - he’s 
not involved." 


Strong sales 
growth at 
Spandex 

Shares in Spandex jumped 43p 
to 643p, after the annual meet- 
ing was told that the first four 
months of 1994 had shown 
strong sales growth, with turn- 
ova* of the USM-quoted distrib- 
utor of si gn-making equipment 
being some 13J5 per cent ahead 
of the same period last year. 

Mr Charles Dobson, chair- 
man, said the UK side contin- 
ued to recover strongly and the 
initial performance of the new 
French subsidiary, Spandex 
France, was very encouraging. 

Net debt had risen during 
the first four months of this 
year, as a result of the French 
acquisition. 

Mr Dobson said Spandex 
would continue to introduce 
new product developments Into 
its markets. It would also 
endeavour to further penetrate 
existing markets, he added. 


IBM aids recovery with 
marketing reorganisation 


By Alan Cane 

Mr Nick Temple, chief executive of 
International Business Machine's UK subsidiary 
since early 1992, has moved up to a key Euro- 
pean post in a major marketing reorganisation. 

IBM, the world's largest computer manufac- 
turer, is creating marketing teams aimed at its 
14 most Important industrial markets in each of 
the principal geographic areas, North America, 
Europe, Middle East and Africa and Asia-Pa- 
cific. 

The move is part of its recovery from three 
years of losses caused by a sharp decline in the 
cost of computer hardware and a shift among 
customers away from mainframe computers. 

Mr Temple, 46, has been appointed general 
manager for the European finance industry 
which is regarded as IBM’s most important busi- 
ness area. The majority of the world’s major 
banks and financial institutions use large IBM 
computers for accounting and customer infor- 
mation. 

His position as head of IBM (UK) will be taken 
by Mr Javaid Aziz, 41, formerly general manager 


of marketing for the UK subsidiary. 

Mr Aziz has worked closely with Mr Temple 
over the past two years In restructuring and 
revitalising IBM (UK) and Iris promotion was no 
surprise to the company’s senior staff. He was 
closely identified with "Galaxy”, a scheme 
implemented last year through which the UK 
company was divided Into 30 separate busi- 
nesses, each with its own cost structure and 
profit and loss responsibilities. 

Mr Temple’s new past is regarded as a promo- 
tion, recognising his work In leading IBM (UK) 
back to growth after two years of heavy losses. 
He has reduced cost structure, cut away layers 
of management and reorganised the workforce. 

Last year he was appointed an IBM vice presi- 
dent, the first IBM (UK) chief executive to be so 
rewarded. Mr Temple will take on the role of 
chairman of IBM (UK) after the retirement of Sir 
Anthony Cleaver later this month. 

Mr Aziz, a graduate of Loughborough Univer- 
sity. joined IBM as a graduate trainee in 1975. 
His appointments with the company have 
included director of quality, Europe, and assis- 
tant general manager, European operations. 


Royal Bank fund management talks 


By John Gapper and 
Norma Cohen 

Royal Bank of Scotland Is 
thought to be in talks with 
Newton Investment Manage- 
ment on plans to merge their 
fond management operations. 

Royal Bank would take a 
stake in the enlarged group, 
which would be managed by 
Newton. 

The company said yesterday 
that it was in discussions over 
"possibilities for cooperation 
in fund management” with 
Newton, but had “no current 
plans" to acquire an invest- 


ment management business. 

Royal Bank, which is due to 
announce Its interim results 
next week, would not comment 
further. 

Royal Bank's Capital House 
Investments arm has about 
£5bn In funds under manage- 
ment. However, the bank is 
thought to believe that combin- 
ing operations with Newton 
would be a more effective way 
of expanding than outright 
acquisition. 

Newton Investment Manage- 
ment, based in London, is a 
growing fund management 
company with £5.l7bn raider 


management Roughly £4bn of 
that is pension scheme assets 
with the remainder In unit 
trusts for retail Clients. 

Newton has distinguished 
itself by superior performance 
in recent years and in 1993 was 
the top-ranked firm among 
pension managers with a 
median in-house return of 37.4 
per cent according to figures 
compiled by Combined Actuar- 
ial Performance Services. 
Among fund managers mea- 
sured by CAPS, the median 
return was 29-2 per cent 

According to data compiled 
by the Financial Times, New- 


ton is also the top performer 
among leading pension fund 
managers over the past five 
years. It is the 17th largest 
pension fund manager in the 
UK. 

Although its services are fre- 
quently recommended by pen- 
sion fund consultants who 
advise schemes, Newton has 
only resumed accepting new 
clients In April after a two-year 
hiatus. 

Capital House, meanwhile, is 
ranked 25th largest pension 
fond manager according to an 
FT survey, with £4£bn under 
management 


Denby 
£40m 
placing 
on table 

By Peggy HolHnger 

Denby Group, the pottery 
company famous for its 
informal tableware, is bring 

reborn as a quoted company 
with the promise to investors 
of a 52 per cent jump in 
pre-tax profits to £4.1m for 
1994. 

The company published the 
profits forecast and first half 
results to March 31 in the 
pathfinder prospectus sent 
to shareholders yesterday. 
Deuby recorded pre-tax profits 
of £2.03m for the first six 
months on sales 32 per cent 
higher at £[l.4xu. 

Denby, which was rescued 
from the receivers of ColoroIL 

- which bought Denby in 1987 

- via a management buy-out 
in July 1990, is coming to 
the market through a placing 
and public offer this month 
with a value of more than 
£40 m. 

The company is due to 
publish the flotation share 
price on May 19 and dealings 
will begin on June 2. 

Denby intends to use the 
£10m in proceeds which It will 
retain to pay net debt of £7m 
and fund capital expenditure 
estimated at roughly £4m a 

year. 

Mr Stephen Riley, managing 
director, said Denby had 
eqjoyed bettor margins in the 
fast half. The higher-priced 
new designs were selling more 
rapidly than the less 
expensive, but older, products. 

Denby had also shown 
significant progress in 
boosting exports, an area on 
which it aims to focus 
post-flotation. Sales abroad 
represented some 20 per cent 
of tu r no v er in the first half, 
compared with 13 per cent 

Mr Riley said Denby now 
operated out of 10 department 
stores across the US, including 
Stacy’s, the worlds biggest 
department store. 

Mr Riley said there was 
substantial room to increase 
Denby’s share of the export 
market, given the performance 
of other tableware 
manufacturers which sold 
between 50 and 60 per cent 
of their products abroad. 


Arcadian 
makes £2.75m 
acquisition 

Arcadian International, the 
leisure-based developer and 
operator, has made a 
recommended cash offer worth 
some £2. 75m for Ettington 
Park Group, owner of a 48 
bedroom hotel situated near 
Stratford-upon-Avon. 

Irrevocable undertakings 
to accept the offer have been 
received In respect of 48JJ per 
cent of the A shares and 100 
per cent in respect of both the 
B and preference share 
capitals. 

EP group was Incorporated 
in 1984 and in 1985 raised 
£l.lm under a Business 
Expansion Scheme to acquire 
the Victorian gothic mansion 
at Ettington Park and convert 
it into a luxury hotel. 


QMH plans to prevent 
second restructuring 


equity, which will dilute cur- 
rent shareholders substantially 


By Maggie Uny 

Bankers working an the £L3bn 
Queens Moat Houses refinanc- 
ing have learnt the lesson of 
Heron International’s recent 
difficulties and designed pro- 
posals which should prevent 
the need for a second restruct- 
uring in short order. 

Heron completed a refinanc- 
ing last September only to find 
that a crashing Spanish prop- 
erty market has already made 
a second one necessary. Bar- 
clays w»nk is the lead bank on 
both Heron and QMH. 

Proposals have been passed 
by the QMH banks’ steering 
committee and have this week 
hfww sent to the rest of the 
hotel group’s 65 bank Leaders. 

The idea of the QMH 
restructuring plan is to convert 
an initial amount of debt into 


but not by as much as some 
have feared. If the company 
prospers and trading condi- 
tions pick up, this limited con- 
version should be sufficient. 

However, there is a back-up 
element In the proposals under 
which a further tranche of debt 
could be converted into equity 
if trading conditions worsen or 
the company foils to meet 
profit targets. This would 
involve diluting existing share- 
holders to a small percentage 
of the total equity. 

The plan is said by its propo- 
nents to be robust and pru- 
dent, and not dependent on 
asset sales to succeed. 

Holders of the group’s two 
debenture stocks, which have a 
total nominal value of £2 15m, 
stand In a strong bargaining 


position as they have security 
over a list of QMH’s hotels 
They can expect their interest 
to be paid, although they can- 
not escape sharing some of the 

Bank lenders will see some 
of their debt converted to 
equity now, some earmarked 
for a later conversion If neces- 
sary. some remaining as debt 
but not receiving interest In 
the short term, and a small 
proportion being serviced. 

The timetable for approval of 
the proposals Is lengthy, 
although It is hoped that meet- 
ings of shareholders, the final 
stage in the process, can be 
held before the summer holi- 
days. 

If the plans are approved by 
shareholders the group’s 
shares, which are suspended, 
should be relisted. 


Yates Bros Wine Lodges 



Peter Dickson: family will retain control of the company 


By David BteckweS 

Yates Brothers Wine Lodges, 
the independent northern- 
based drinks group whose 
Blackpool outlet is a favourite 
watering hole for politicians 
and journalists at conference 
time, is planning a fall listing 
thin summer. 

The group was founded in 
1884 by Mr Peter Yates, who 
was fired by a philanthropic 
desire to sell quality wine at 
reasonable prices to the north- 
ern working man. 

Mr Peter Dickson, his great- 
grandson and the group's cur- 
rent managing director, said 
the founder built the business 
quickly by the simple expedi- 
ent of cutting out the middle 
men. In the mid-1980s Mr Dick- 
son started to rationalise and 
expand the group, raising 
money by count ng to the mar- 
ket under the matched bargain 
Rule 535. About 75 per cent of 
the shares are currently in 
family hands. 

Last December Yates 
reported a 18 per cent rise in 
pre-tax profits to £L41m for the 
six months to September 26, on 
turnover 34 per cent ahead at 
M3m- it reported buoyant sales 
across retail and wholesale 
activities. Full-year results are 
expected in eariy June. 

Yates’s Wine Lodges, the 
main subsidiary, has 46 outlets 
concentrated in the north of 
England. Group policy is to 
concentrate on town and city 
centres, with ground floor 
retail space of between 2,000 
and 2^00 sq ft 


Mr Dickson said the group 
had a market capitalisation of 
£47ul The flotation, would aim 
to raise new money while leav- 
ing (he family in cantroL 
On Thursday the group 
opened in Leigh, Lancashire, 
the first outlet of Watting 
Street Inns - a joint venture 
company launched last year 
with Mr Steven Kalton. of Kal- 


ton Inns and Leisure, another 
northern company. Yates owns 
75 per cent of the venture, 
which is aiming at a more fam- 
ily-orientated market outside 
town and city centres. 

The group also has a whole- 
sale business, and is supplier 
of drinks to more than 30 air- 
lines. Its sponsor is Panmure 
Gordon. 


TI offering 5p cash for each 
outstanding Usborne share 


By David Blackwell 

TI, a private food and 
commodity company, yester- 
day offered 6p in cash for the 
shares it does not already own 
in Usborne, the grain trading 
and pig production concern. 

Shares in Usborne were 
suspended on April 18 at 19%p 
after the group bad warned of 
substantial interim losses fol- 
lowing pig production 


problems. 

The offer values Usborne at 
about £4*58m. 

Last week Usborne said that 
Mr David Frame, Its chief exec- 
utive, had agreed to sell a 36 
per cent stake In the company 
for 5p a share to Mr David 
Thompson, a shareholder. 

As a result TI, owned by Mr 
Thompson members of his 
immediate family, now has just 
under 36 per cent of the shares. 


while Mr Thompson has a fur- 
ther 14.09 per cent 

If acceptance of the offer 
prejudices Usbome's listing, IT 
a i m $ to place enough shares 
with third parties to retain the 
listing. 

Usborne has told TI that It 
will publish the results for the 
six months to end-Deceanber as 
soon as practicable. 

TI had net assets of £245m 
as at March 31 1993. 


Biotrace 
shares 
jump 17p 

Shares in Biotrace Inter- 
national rose 17p to 152p yes- 
terday after the micro biologi- 
cal testing company, which 
was floated in November, said 
that sales to date of its Uni-Lite 
system were ahead of expecta- 
tions. 

Bio trace said it was encour- 
aged by Uni-Lite’s results, 
which followed the first mar- 
keting phase of the system in 
the US by the Klenzade divi- 
sion of Ecolab, the company's 
new marketing partner. Sales 
to date were "substantially 
ahead" or the original plan. 

In the UK. Biotrace had 
secured new key accounts with 
Carlsberg-Tetley, Hazlewoods 
and Hihsdown. 


Go wrings restates 
1993 profits 


Go wrings, the motor tradi 
and leisure company, is rest 
ing its 1993 accounts to to 
account of an exception 
charge resulting from the si 
of a mobile home park ne 
Oxford. 

The company al 
announced the sale of Gov 
ings Mobility, which convej 
vehicles to enable them 
carry wheelchair passenge 
to its manag e ment for a ma 
mum £589,411 cash. The sale 
” a premium to book cost t 
the accounts are not 
Rusted for this. 


NEWS DIGEST 


The effect is to cut Go wrings’ 
pre-tax profit from £251,000 to 
£54,000 giving earnings per 
share of 0.12p, compared with 
2J28p. The 2p total dividend is 
now uncovered. The shares 
were unchanged yesterday at 
75p. 

Go wrings received £825,100 
for the mobile home park 
against a book value of £ 1.02m. 
Taking account of the loss 
caused the 1993 exceptional 
credit of £157,000 to change to a 
loss of £40,000. 

The management of Mobil- 
ity, led by Mr Gary Newton, a 
director of the offshoot, Is pay- 
ing an initial £464,411 plus a 
sales-related sum up to 
£225,000. 

Hartstone sells 
Leeds hosiery side 

Hartstone Group has sold the 
business and certain of the 
assets of Hartstone Hosiery, 
comprising its hosiery distribu- 
tion business based in Leeds, 
to its senior management for 

The consideration includes a 
deferred amount or £300.000. 

Hartstone sold its other 
ladies' hosiery Interests to 
Courtaulds In January. 

Coats ViyeUa 
share dividend 

Coats ViyeUa has received elec- 
tions accepting Its enhanced 
share dividend alternative to 
its final cash dividend in 
respect of holdings totalling 
633,58m existing ordinary 
shares <94.4 per cent). 

BZW has received accep- 


New issues return to old basics 

David Wighton examines the recent falling interest in flotations 


tances of its cash offer in 
respect of 156.27m existing 
ordinary (24^ per cent). 

The final cash dividend pay- 
able this year will be about 
£1.8m, against £32.1m which 
would have been payable if all 
shareholders had received in 
full the cash dividend. The 
company’s ACT saving will be 
some £7.5m. 

CSC Investment net 
assets rise 

For the year 1993 net asset 
value per share of the CSC 
Investment Trust rose from 
10L63p to 133.45p. 

Available revenue emerged 
well ahead at £113,131 com- 
pared with £45.247 equal to 
8J38p (2.75p) per share. 

There is a final distribution 
of 4p (2L5p) which lifts the total 
dividend from 4p to 5J5p. 

Gross income amounted to 
£189,437 against a previous 
£126,751. 

JO Walker in black 
with £6 1,634 

For the year ended December 
31 JO Walker, the timber 
importer, achieved pre-tax 
profits of £61.634. The figure 
took account of second half 
losses of £100,366 and an excep- 
tional credit of £226,484, being 
the maturity of an endowment 
policy. 

The profit compared with 
losses for 1992 of £402,033. 
Turnover rose from £l2.16tn to 
ei A vtm over the 12 months. 

Earnings per share were 
7.7 p, against 37.4p losses and 
again there is no dividend. 


T he new issue market 
has gone off the boil 
over the last month and 
judging by the reception to 
some of this week’s debutantes 
it is cooling' rapidly. 

Health call and Lombard 
Insurance were both forced to 
cut their flotation price by 
more than 10 per cent this 
week as institutions showed 
symptoms of new issue indiges- 
tion. 

Private investors look 
equally sated. The offer of 
shares in the International Bio- 
technology Trust, backed by 
the heavyweight team of 
Rothschild Asset Management 
and Robert Fleming, attracted 
just £2.67m. In total it raised 
only £37.8m, compared with 
the target of ElOOm. 

Yet few significant issues 
have been pulled, though one 
large demerger is said to have 
been put on hold, and the pipe- 
line is full of new hopefuls. 

"There is a whole pack to get 
through before the summer 
and they are queueing up 
round the block for the 
autumn," said one adviser. “If 
they all come, prices are going 
to crane under a lot of pres- 
sure." 

That pressure was seen 
clearly with Redrew. Britain's 
biggest private housebuilder, 
whose issue size was scaled 
back and the price cut by more 
than 20 per cent The House of 
Fraser price was also trimmed 
and the heavily-promoted issue 


was only twice subscribed. 

Mr Christopher Knight, who 
handled Healthcafi's flotation 
at Morgan Grenfell, the mer- 
chant tank, blames the volume 
of new issues over the last few 
months. "That inevitably leads 
to new issue fatigue among 
investors who are now being 
rather more sceptical." 

Yet in many cases prices are 
holding up. Vymura. the wall- 
coverings group, was priced 
this week at exactly the level 
planned when the flotation 
was announced six weeks ago. 

Mr David Simpson, a director 
of Barclays de Zoete Wedd, 
Vymura's sponsor, said: "There 
is still an appetite for quality 
new issues but the market is 
now pretty price sensitive. The 
key is not to over price In the 
first place." 

He points to the disappoint 
ing performance of some 
recent new issues. The most 
spectacular flop has been Maid, 
the on-line business informa- 
tion group which was to be val- 
ued at more than LOO times its 
profits. Although the offer 
price was cut back the shares 
are now trading at a 40 per 
cent discount, in contrast 
another fledgling company, 
Unipalm, the computer net- 
work specialist, has gone to a 
healthj’ premium. But many 
advisers believe such compa- 
nies are going to find it harder 
going from here. 

Mr Pat O’Reilly, head of cor- 
porate finance at Panmure 


Gordon, the broker, said: “The 
wildly esoteric new issues are 
now out of the question unless 
they have a very good story.” 

Some observers believe the 
problem is that institutions, or 
more particularly funds spe- 
cialising in smaller companies, 
are running out of money. 

"They are just not as liquid 
as they were six to twelve 
months ago when Institutions 
were pushing .more money into 
their smaller company funds," 
said one smaller companies 
analyst “They now don’t have 


the resources to go for all the 
new issues and If they want to 
they will have to sell some- 
thing.” 

If true, this might mean that 
a continued stream of small 
new Issues may start to under- 
mine the share prices of com- 
panies which have recently 
floated. 

However Mr O'Reilly dis- 
counts the weight of money 
argument. “Institutions are 
merely getting fed up with the 
sheer number of small new 
Issues. It had reached the point 


where fund managers were 
having to go to two or three 
new issue meetings a day." 
Investors are getting more 
sceptical about some vendors' 
motives for coming to the mar- 
ket “Institutions are beginning 
to say to themselves “If this 
guy just wants to buy a new 
swimming pool 1 don't see why 
we should pay for if," com- 
mented one fund manager. 

One large institution is said 
to have stopped looking at any 
flotations on the grounds that 
there is better value to be had 


in shares already on the mar- 
ket. 

Whether pressure on prices 
reduces the flow of new issues 
may depend on the require- 
ments of the large sharehold- 
ers. 

“Some vendors may be 
happy to postpone flotation in 
the hope that prices pick up 
again. But venture capital 
backers of some management 
buy-outs may want to get their 
money out to invest elsewhere 
and be prepared to take a 
lower price, 1 ’ said one broker. 


There appear to be particular 
problems in some sectors, nota- 
bly biotechnology, where many 
of the recent new Issues are 
trading at a discount The pro- 
posed flotation of Pharmako- 
pius has been postponed indefi- 
nitely and the Cortecs issue 
pushed back by at least a 
month. 

The market also seems to be 
suffering from a 'surfeit of 
Investment trust launches 
which may partly explain thS 
reception to Rothschild’s bio- 
technology trust 

A ll is not gloom. One 
adviser argues . that 
sentiment has actually 
unproved recently. “A couple 
of weeks ago two of our flota- 
tions were put on hold but are 
now bads on track," he said. 
But investors are clearly 
becoming more discr im i nating, 
and with good reason. ' 

Last week’s profit warning' 
from Canadian Pizza, which 
drove Its shares 40 per cent 
below the November flotation 
price, underlined the risk of 
investing in now issues.- 
Backers of International 
Food Machinery’s flotation 
have fared worse still The 
receivers, who were called * 
three months ago, have given 
up attempts to sell the busi- 
ness as a going concern and 
this week told creditors th® 6 
was a total deficiency of fiftSfl* 
Only 18 months alter its flota- 
tion the shares are worthless. 


"Institutions are beginning to say 
to themselves if this guy 
just wants to buy a new swimming pool 
I don’t see why we should pay for it%” 
commented one fund manager 


<. ! K | , 



I 



FINANCIAL. TIMJES WEEKEND MAY 7/MAY 8 1994 

INTERNATIONAL COMPANIES AND FINANCE 


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Further 

By Alan Caw 

Digital Equipment, the 
loss- making us computer man- 
ufacturer, is likely to cut at 
least a further 20,000 jobs, 
about half of them in Europe, 
as it struggles to return to 
profit. 

It is also loo king at a range 
of other cost-cutting moves, 
including joint ventures and 
the sale of some of its operat- 
ing units. 

The company said no firm 
decisions had been made about 
the closure of European manu- 
facturing centres. Digital man- 
ufactures the world's fastest 
microprocessor, Alpha, at 
South Queensferry in Scotland. 

Mr Robert P alm ar. Digital 
chief executive, warned top 
managers this week that the 
future of the company was at 
stake if the measures were not 
successful. 

He said: “We must achieve a 


job cuts 

competitive cost structure as 
rapidly as possible. And even if 
we are fortunate to achieve a 
reasonable growth hi revenues, 
we cannot escape the fact that 
significant additional down- 
sizing is unavoidable.” 

"Failure to act promptly will 
result in a greater loss of 
employment In fact, the entire 
enterprise could be at risk.” he 
said. 

Mr Palmer’s anxieties came 
as no surprise to industry ana- 
lysts, who have been con- 
cerned that Digital’s restruct- 
uring measures have so far 
failed to improve performance. 

Once the world's second-larg- 
est computer manufacturer, it 
has lost some $3bn over the 
past few years. Its loss for the 
three months MwnTi - 

its third quarter - was $183m, 
some three times greater than 
the most pessimistic analysts 
had anticipated 

The loss seemed to surprise 


likely at 



Robert Palmer: warns of 
risk to ‘entire enterprise* 


the company's top manage- 
ment, raising fresh concerns 
about Mr Palmer’s ability to 
manage a turaround at the 
company. 

Analysts point out that at 


Digital 

least 25,000 jobs will have to go 
simply to bring Digital on a 
par, in terms of revenue gener- 
ated per employee, with, say, 
IBM or Hewlett-Packard. 

Mr Palmer said: "If you look 
at the implications of achiev- 
ing a competitive position at 
our current revenue levels, 
the metric of revenue per 
employee suggests a company 
of 65,000, or fewer.” Digital cur- 
rently employs about 85,000. 

In Europe, some 6,000 of its 
29,000 staff are already due to 
be made redundant this year 
under a scheme set in place by 
new European president, Mr 
Vincenzo Damiani. 

Mr Palmer said the quality of 
Digital's products was not at 
issue. The problems were 
account management, manu- 
facturing delivery. 

He said the company's 
operations should be profitable 
by the end of calendar 1994. 


Asia’s big spenders put 
luxury back into shopping 


Generali 
confounds 
rights issue 
speculation 

By Andrew H® 
in MOan 

Generali, Italy’s biggest 
insurance group, yesterday 
announced an 8 per cent 
increase in parent company 
profits, to L420bn ($282m) for 
1998 compared with the previ- 
ous year. However, it con- 
founded speculation that an 
important strategic announce- 
ment would be matte- 

FoUowing a board meeting; 
the company proposed a L10 
increase in the dividend, to 
L360 per share. However, 
instead of launching a rights 
Issue ^ as many commentators 
had predicted - Generali 
announced a bonus Issue of 
shares. The Issue win be made 
an a tme-for-10 basis. 

Generali’s stock rose by 
nearly 4 per cent yesterday, as 
speculation, continued about 
the possibility that it would 
buy Victoire. the French 
insurer which has been put up 
for sale by its owner Suez, the 
French holding company. Vic- 
toire is valued at FFrlSbn 
«2Jbn), and an announcement 
about the. successful bidder is 
expected soon. •- 

The Italian company is also 
said to be interested In taking 
part in an Austrian-led consor- 
tium to take a minority stake 
in Creditanstalt Bankvereln, 
Austria’s second-biggest bank. 

Last year, the Generali par- 
ent company increased gross 
premium income from 
L8.804hn to L9,776bn. Life 
insurance premiums rose 129 
per cent to L3350bn, a 99 per 
cent increase if exchange-rate 
fluctuations are ironed out 
Non-life premiums totalled 
L5926bn, up 99 per cent or 4.7 
per cent if adjusted. 

The company also enjoyed a 
strong rise in net income from 
investments, from L2,121bn to 
L2,482bn. The consolidated 
group results should be 
announced cm May 27, but Gen- 
erali said yesterday gross pre- 
mium income at group level 
would reach some L25,000bn, 
against L22,423bn in 1992. 

• Toro Asslcnrazioni, the 
insurer which is part of the 
Fiat group, reported that net 
profits increased to L15&2bn in 
1993, up 10.1 per cent on 1992. 

French crystal 
name taken over 

Lalique, one of the oldest and 
most famous names in French 
crystal making , is to lose its 
independence through a take- 
over by Pochet, another presti- 
gious French glass maker, 
writes Alice Rawsthom in 
Paris. 

Pochet, which specialises in 
making bottles for sectors such 
as the perfume industry, 
already owns 9.4 per cent of 
Lalique, and has agreed terms 
with Ms Marie-Claude Lalique. 
the owner, to buy her 60.4 per 
cent stake. 

Lalique, founded in 1922, has 
sales of FFtfSTOm ($S5ffl). 


A sprey, the exclusive 
London gift shop, 
recently sold a gold 
«nri lapte ia«nH nickelodeon for 
£300,000 ((447,000) to an Asian 
businessman 

Now £300,000 ottfets are not 
sold by Asprey every day - but 
it has been 'selling them more 
often since the start of this 
year. "The market is still very 
erratic,” says Mr Naim Attal- 
lah, chief executive, "bat busi- 
ness is getting better. There's 
definitely something in the 
air." 

Asprey Is not the only mem- 
ber of the luxury goods indus- 
try to have detected signs of 
recovery. LVMH and HermSs, 
two of the most famous names 
.in French luxury goods, last 
week both reported sales 
growth of around 30 per cent 
for the first quarter of this 
year. 

This flurry of good news 
comes as a sorely -needed relief 
to the industry after three 
gruelling years of economic 
recession and a spate of dis- 
tress-induced takeovers. Last 
year alone, Yves Saint-Laurent, 
the French fashi on house, was 
acquired by oil group Elf Aqui- 
taine, qnd the Gucci family lost 
control of Its Italian leather 
business to Investcorp, the 
Arab consortium. 

However, thanks to improv- 
ing demand, the industry now 
seems mare stable. Although 
some established markets, 
notably continental Europe 
and Japan, remain depressed, 
there is evidence of recovery in 
others. "There’s definitely a 
positive trend in North Amer- 
ica,” said Mr Alatn-Dominique 
Perrin, chairman of Cartier, 
the French jewellery group, 
"although some European 
countries, such as Italy and 
Switzerland, are still 
weak.” 

One compensation for the 
squeeze on the industry's 
established European markets 
is the expansion of its business 
in eastern Europe. LVMH has 
already opened a Christian 
Dior boutique in Moscow and 


By Christopher Brown-Humes 

Atlas Copco, the Swedish 
industrial components group, 
has reported a SKr380m 
(8499m) profit after financial 
items for the first quarter, up 
21 per cent from a year ago. 

The group attributed the 
upturn mainly to the benefits 
from a SKr700m investment 
programme at an Antwerp 
compressor plank 

A combination of acquisi- 
tions, currency effects, price 
rises and higher volumes took 
sales np 13 per cent to 
SKr4.83bn. Operating profit 
climbed 34 per cent to 
SKr382m, helping to offset a 
SKr27m currency loss. 

Orders were 12 per cent 
higher at SKriLZbn. In Europe, 
orders rose in the UK, Spain 


Things are 
starting to 
look np in 
the world of 
exclusive labels 
and goods, 
writes Alice 
Rawsthom 

plans soon to open another for 
Louis Vnitton luxury luggage. 
Asprey this summer wifi open 
an outlet in Prague for Mappin 
& Webb, the silversmith. 

The Industry is also benefit- 
ing from the emerg ence of new 
markets in Asia. One of its big- 
gest problems in the early 
1990s was the collapse of Japa- 
nese demand , one of the chief 
catalysts of industry growth 
during the 1980s. Japan is still 
fragile, but other Asian coun- 
tries are expanding rapidly. 

"The Japanese market has 
stabilised, hut we’ll have to 
wait until 1995 for recovery to 
take off.” said LVMH chairman 
Mr .Bernard Arnault. “In the 
meantime, we're already exper- 
iencing significant growth in 
other Asian markets such as 
Taiwan, South Korea and Hoag 
Kong." 

T hese new Asian markets 
have now replaced the 
(fiddle East as the main 
source of "high rollers," the 
super-rich customers who are 
likely to treat themselves to 
the extremely expensive one- 
off items - such as Asprey’s 
nickelodeon - that are often 
highly profitable for the luxury 
goods houses. 

"Almost all our big punters 
cone from Asia these days." 
said Asprey’s Mr Attallah. "In 
the old days, it was the Middle 
East, but that has slowed down 
since the Gulf war. Even the 
wealthiest Europeans and 
Ameri cans are inhibited about 
spending money. But the 


and France, although the Ger- 
man market continued to 

decline. In many Twin-F&nmp ean 

markets, order levels were 
strong. 

The group’s biggest division. 
Compressor Technique, lifted 
operating profits to SKr29Sm 
from SKr2Q2m, due to better 
volumes and efficiency. This 
helped offset a slight foil in 
profits in its other divisions. 

Full-year profits are expected 
to exceed the 1993 SKrL32bn 
level- Although orders are 
expected to rise tn most Euro- 
pean markets in 1994, Goman 
demand is likely to remain 
weak, the company said. 

The group has decided to 
close a Canadian plant which 
manufactures rock-drilling 
tools. Production will be 
switched to Sweden and Brazil 


Asians are the biggest gam- 
blers and the biggest spenders. 
If they in»» something they’ll 
buy it, no matter how much it 
costa.” 

However, the market with 
the greatest potential is China. 
Until recently, most companies 
operated there on an experi- 
mental basis in liaison with 
local partners. They are now 
investing directly, as Cartier 
did last aut umn when it 
opened a shop In shanghai Mr 
Perrin sees China as “unques- 
tionably one of our most prom- 
ising markets for the future”. 

The brighter outlook has 
already encouraged same lux- 
ury goods complies to adopt 
a more expansionist stance. 
L’OrdaL the French cosmetics 
company which owns Giorgio 
Armani perfume and LancOme 
skin products, last month 
acquired full control of Cos- 
mair , its US distribution busi- 
ness. 

LVMH last week paid 
FFrL96bn (5344m) for a major- 
ity stake in Gnerlain, the 
French fragrance house. Guer- 
lain is expected to be the first 
in a series of deals far LVMH, 
which has dramatically 
reduced its debt after unravell- 
ing cross-shareholdings with 
Guinness, the UK drinks 
group. 

Sfr Arnault has already indi- 
cated interest in diversifying 
into jewellery. Tiffany of the 
US and France’s Van Clef & 
Arpels are being talked about 
in the trade as possible targets. 

"Well consider acquisitions, 
as we have in the past, if the 
right opportunities arise at the 
right price," said Mr Arnault 
“In principle, jewellery is an 
area into which we might 
expand, but there are no spe- 
cific commitments at this 
point" 

LVMH is now free to commit 
Itself, having last week finali- 
sed the Guinness deal. The lux- 
ury industry Is now waiting to 
see where Mr Arnault will 
strike next - judging by his 
past form, it will not have long 
to wait 


Holderbank 
improves as 
sales climb 

By lai Rodger in Zurich 

Holderbank, a leading 
international cement and 
building materials group 
controlled by Mr Thomas 
Schmidheiny, said net income 
rose 10 per cent last year, to 
SFr287m (5205m), on sales up 
7.6 per cent at SFxfMtm. 

The group said the sales rise 
was due to a widening of the 
consolidation, plus higher vol- 
umes and prices. Deliveries of 
cement and clinker rose 79 per 
cent to 469m tonnes, and the 
volume of ready-mixed con- 
crete was ap 79 per cent, to 
i 4.2m cubic metres. 

The directors have proposed 
a 20 per cent rise in dividends, 
to SFrl5 on bearer shares and 
SFr3 on the registered shares. 


Atlas Copco advances 
21% in first quarter 


Packer team loses bid for Sydney casino 


By Nikki Tallin Sydney 

Mr Kerry Packer, the 
Australian businessman, and 
Circus Circus, the large US 
gaming group, yesterday lost 
their joint bid to build the 
US$lbn-plus Sydney casino 
complex, which Is forecast to 
have annnal gaming revenues 
of around A£500m (US$357. lm) 
when it comes on stream in 
1997. 

Instead, the New South 
Wales Casino Control Author- 
ity announced yesterday the 
winning development proposal 
had been submitted by Leigh- 
ton Holding s , the Stock m&T- 
ket-Usted Australian engineer- 
ing and iy ins truction group in 
which Hochtief, the German 


construction group, has a 48 
per cent shareholding. 

Although the CCA stressed 
no one factor had infiggneeri 
its decision, the Leighton bid - 
made in conjunction with 
Showboat, a US casino group - 
offered a much higher upfront 
payment to the NSW state in 
return for the casino licence. 

The consortium has prom- 
ised to pay AM4im ova 1 three 
years, or A$376m as a single 
upfront sum - a figure which 
even Mr Chris Cullen, the CCA 
chairman, described as “excep- 
tional". 

Mr Padser - whose involve- 
ment in the rival consortium 
was through his Nine Network 
and Consolidated Press compa- 
nies - said his group had "bid 


our maximum price and came 
up over A$80m short". “On 
that basis, [Leighton/Show- 
boat] deserved to win and good 
luck to them," said the busi- 
nessman, known to be a keen 
gambler himself. 

The Sydney casino is the 
last, and largest, in a string of 
such development announce- 
ments in Australia. Growth in 
the industry is expected to 
explode over the next three 
years. Casinos are doe to come 
on stream in Cairns, Brisbane 
and Melbourne during that 
time and - with Sydney 
Included - the country's total 

flnnnal gross wrinn revenues 

could top A$2bn by the late- 
1990s. Mr Packer already has 
connections with - and a 


potential direct interest in - 
the Melbourne property. 

The Sydney casino has 
always been seen as a "prize” 
because of the city's strong 
Asian tourist trade. In addition, 
to the upfront licence payment, 
the state expects to get annual 
tax revenues of around AJIOOm 
once It starts operating. 

The Leighton/Showboat pro- 
posal includes a fiv&star hotel, 
serviced apartments, a floor 
show theatre and a 2,000-seat 
lyric theatre, as well as the 
"themed” casino with its 170 
gaming tables and 1,480 gam- 
ing machines. * 

Leighton cald the consortium 
company, called Sydney Har- 
bour Casino, would he floated 
by 1995. 


Sweden launches record 
SKrlObn Pharmacia sale 


IBM to 
restructure 
marketing 
operations 

By Louise Kehoe 
In San Francisco 

International Business 
Machines Is realigning its 
worldwide marketing and 
sales operations into 14 teams, 
each addressing a specific 
industry segment. The change 
represents the most far-reach- 
ing reorganisation at IBM for 
several decades. 

IBM will “re-engineer the 
way we go to market,” said Mr 
Lou Gerstner, chief executive, 
in a memo to employees. "I 
believe we have to step up oar 
ability to help customers apply 
technology in their enter- 
prises. Customers need it and 
want it” 

The shift is a central part of 
Mr Gerstner’s plan to return 
IBM to a satisfactory level of 
profit, following heavy losses 
over the past three years and 
slim profits in the first quarter 
of this year. 

The reorganisation repre- 
sents a fundamental change in 
IBM's marketing and sales 
approach. Currently, the 
40,000-etrong salesforce (exclu- 
ding an even larger support 
staff) is organised along geo- 
graphic lines, under country 
and regional matiagwmm t. 

Under the new plan. Indus- 
try-specific marketing teams 
will be created to report to 
worldwide or divisional man- 
agers. 

However, regional sales 
managers will retain responsi- 
bility for product marketing, 
IBM said. They will co- 
ordinate the local activities of 
the industry 

Traditionally, IBM sales per- 
sonnel have been generalists - 
s ellin g everything from type- 
writer ribbons to mainframe 
computers. Over recent years, 
many have become product 
specialists. Some, within the 
Application Solutions Divi- 
sion, have specialised in creat- 
ing information-processing 
systems for particular indus- 
try segments. ASD will play a 
leadership role in the reorgan- 
isation, Mr Gerstner said. 

With the revamp, IBM sales 
representatives will become 
industry experts, or consul- 
tants, rather than product sell- 
ers. This will require extensive 

retraining. 


By Christopher Brown-Hunes 
in Stockholm 

The Swedish government 
yesterday launched its biggest 
privatisation, unveiling plans 
to sell a 32.5 per cent stake in 
Pharmacia, one of the world's 
top 20 pharmaceuticals groups,, 
for around SKrlObn (SI Jbn). 

The take-up by foreign 
investors, to be promoted 
through a global offering, is 
expected to be larger than in 
previous Swedish privatisation 
issues. 

The government originally 
planned to sell its entire stake 
in Pharmacia, equivalent to 

45.4 per cent of the capital and 

57.5 per cent of the votes. It 
has. instead, decided to retain 
a 12.9 per cent capital stake 
and 10J. per cent of the votes, 
to promote long-term owner- 
ship stability. 

The move is a response to 
the uncertainty which Volvo, 
the Swedish motor group, 
created last month when it 
said it would sell Its 28 
per cent stake in Pharmacia. 
Volvo has agreed not to sell 


By Mchiyo Nakamoto in Tokyo 

A financial institution owned 
by employees iff Japan’s Minis- 
try of Posts and Telecommuni- 
cations filed for liquidation 
yesterday with debts of YlOlbn 
(8988m). It is Japan's third- 
largest bankruptcy this year. 
Koshin Shoji, a wholly- 
owned subsidiary of a Ministry 
of Posts and Telecommunica- 
tions’ workers' co-operative 
based In Tokyo, filed for 
liquidation with the Tokyo 
district court after a share- 
holders' meeting found the 
company had no choice but to 
fold. 

The failure is the largest 
among non-bank financial 
institutions since the collapse 
of Osaka-based £. G. Capital 
and Consultants last year with 
debts of Y230bn. according to 
Tokyo Shoko Research, a pri- 
vate research company. It is 
also the third-largest bank- 


this bolding before 1996. 

This will be the last Swedish 
privatisation before the coun- 
try's September general elec- 
tion, and is in line with the 
government's ambition to 
broaden Swedish companies' 
access to equity capital and 
widen domestic share owner- 
ship. 

The government has been 
encouraged by the need to 
resolve two years of ownership 
uncertainty at Pharmacia, 
which was formerly part of 
Procordia, and by the success- 
ful SKr7.6bn sale of a 49 per 
cent stake in forestry group 
AssiDom&n in March. 

Analysts noted that pharma- 
ceuticals had been out of fash- 
ion because of government 
clam pdo wus on healthcare 
spending. However, they 
believe the sell-off will have 
been helped by Roche’s $5 Jbn 
bid for Syntex and SmithKline 
Beecham’s $29bn offer for 
Diversified Pharmaceutical 
Services. These have brought 
new focus to the sector. 

Up to 82.2m A shares are to 
be sold. Half of these are being 


ruptoy this year after Sanwa 
Tatemono, with debts of 
Y12A3bn, and Adoc with debts 
of YllObn. 

The collapse of Koshin is 
likely to raise criticism of the 
ministry's relatively relaxed 
stance regarding the compa- 
ny’s lending practices. 

gnshin Shoji is a non-bank 
financial institution estab- 
lished by an MPT employees' 
co-operative to invest the 
monthly contributions - 3 per 
cent of salaries - made by its 
250,000 members. Members 
receive a lump sum plus 
investment returns upon 
retirement 

The company has lent to dis- 
count note brokers, which in 
turn on-lent funds to consumer 
finance companies, according 
to Tokyo Shoko Research. With 
tighter regulations on con- 
sumer finance companies and 
the collapse of Japan’s asset 
inflation bubble, a growing 


reserved for the retail market, 
with the balance to be offered 
to institutions. Analysts expect 
foreigners to subscribe for as 
much as 75 per cent of the 
institutional offer. 

The price will be fixed on 
June 17, following an institu- 
tional book-building exercise. 
Institutions are expected to 
pay near the market price - 
yesterday SKrl26 per share - 
while individuals have been 
promised a discount 

Pharmacia, which has 
SKr27bn in animal sales, is one 
of Sweden's most international 
companies, with more than 
half of its 19,000 employees 
based abroad. Speciality areas 
include growth hormones, eye- 
surgery and smoking cessa- 
tion. The company is looking 
to compensate for low volume 
growth with vigorous cost-cut- 
ting. 

Goldman Sachs International 
and S. G. Warburg Securities 
are the joint global co-ordina- 
tors of the offer. Institutional 
sales in the Nordic region will 
be lead-managed by Enskflda 
Corporate. 


number of loans made by 
Koshin went bad, the research 
company said. 

The collapse of Koshin fol- 
lows several years of financial 
difficulty, beginning with a 
Y30.8bn write-off of loans made 
to five consumer finance com- 
panies in 1986. Last year, 
Koshin made a loss of Y5^bn 
on revenues of YA3bn. 

The pOStS and t»T«wwnmiTni. 
cations ministry said the loss 
would be covered by selling 
some of the co-operative's 
assets, which amounted to 
Y457.6bn at the end of March 
last year. This would happen 
over a period of about 10 years, 
so as not to affect payments to 
co-operative members. 

Hie MPT employees' co- 
operative also owns other 
badnesses, such as a hotel, a 
construction subcontracting 
company and a golf course. AQ 
of those businesses were 
sound, the ministry said- 


Japan workers co-operative 
collapses with YlOlbn debts 



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FINANCIAL TTMES WEEKEND MAY 7/MAY 8 i»94 


WEEK IN THE MARKETS 

Coffee 
shows the 
way with 
$220 rise 

Barriers were down across the 
London commodity markets 
yesterday. Nearby coffee 
futures raced past the Sl,8Q0-a- 
tonne mark to fresh five-year 
highs: copper prices surged 
above $2,000 a tonne for the 
first time in ten-months; and 
crude oil bettered $16 a barrel, 
in defiance of bearish projec- 
tions by most analysts. 

Coffee's performance was 
easily the most impressive. 
Concern about nearby supply 
tightness bad already helped to 
extend last week’s $90-a-tonne 
gain in the July robusta posi- 
tion at the London Commodity 
Exchange by $135 before yes- 
’ terday’s explosion of specula- 
tive buying took it up another 
$182 to a peak of $1380. It 
weakened in late trading, but 
at $1,789 was still up $91 on the 
day and $226 on the week. 

Supply worries were already 
reflected in the premiums com- 
manded for nearby delivery 
positions before this week's 
upsurge. And that for prompt 
May delivery over July wid- 
ened to $100 a tonne at yester- 
day’s close from $52 a week 
earlier. But more significant, 
perhaps, was the increase in 
the September/November 
spread from $6 to $35, suggest- 
ing that availability problems 
were expected to continue. 

Dealers were worried, how- 
ever, that the preponderance of 
speculative funds in the recent 
buying meant that the market 
was very vulnerable to profit- 
taking. “The rise is becoming 
blown out of propor- 
tion. . . the higher it goes, the 
more vulnerable it becomes, M 
one told Reuter. 

There is sufficient coffee in 
the world, quite substantial 
stocks in consuming countries 
and producer-retained coffee 
which will be released,” said 
another. “We are facing a low 
period of roastings, there is no 


drought, no frost and no major 
interruption in supply.” 

The London Metal Exchange 
copper market, buoyed by 
increased OS physical demand 
and falling stocks, had been 
bracing itself all week for an 
assault on the mid-March peak 
of $1,983 a tonne for three 
months delivery. And when 
that hurdle was cleared yester- 
day morning a flood of short- 
covering and stop-loss buying 
quickly took the price to a high 
of $2,037. It closed at $2,027.50 a 
tonne, up $52.75 on the day and 
$75 on the week. 

The copper market's 
strength was fuelled by yester- 
day’s announcement of a 
17,025-tonne reduction in LME 
warehouse stocks, taking them 
to 456,425 tonnes, 26 per cent 
below February’s 16-year high. 

In contrast, a rise in the alu- 
minium price came in spite of 
an equally substantial rise in 
its LME stocks, which dashed 
traders hopes that recent pro- 
duction cuts would begin to be 
reflected in the stocks totaL 


(Aa a! Thmdayn dose) 


AkmMurn 
Mirinhan day 
Copper 


+18375 EO 2,629,060 
-1,4*0 to 3*300 
-17,020 to 460,425 
+3425 W343900 
-804 to 132848 
+1,575 to 1.14*875 
+015 to2S960 


However, copper's perfor- 
mance ensured that the other 
LME market’s were in no mood 
to wallow In such disappoint- 
ments. The aluminium price 
succeeded in regaining its foot- 
hold above $1330 a tonne to 
dose at $1,332.50. up $5 on the 
day and $05.75 on the week. 

The reversal of sentiment in 
the oil market that has sur- 
prised many analysts was 
underlined yesterday when 
near delivery prices broke 
through the psychological bar- 
rier at $16 a barrel. 

The rise - which took the 
prompt June position at Lon- 
don’s International Petroleum 
Exchange to $16.10 in late trad- 
ing. up 30 cents on the day and 
41 cents on the week - was 
attributed to news of North 
Sea shipment cancellations, 
following Monday’s platform 
shutdowns, and concern about 
the civil war in Yemen. 

Richard Moon e y 


WEEKLY PRICE CHANGES 

Latest Chang* Year 


Goto par troy az. 

Slver per trey oz 
Alurntrsum 99.7% (cash) 
Copper Grade A {cash) 
Lead [cash] 

Mckd (cash) 

Zi nc SHG (cash) 
tin (cash) 

Cocoa Futures JU 
Coffee fvtms Jut 
Sugar (LDP Row) 

Barley Futures Sep 
Wheat Futures Jun 
Cotton Outlook A Index 
Wool (BteSwwl 

OK (Brent Bland) 

Perrema ufeto cdrewta a 


prices 

on week 

ago 

High 

Low 

S37&30 

-090 

$357.80 

*380.50 

$80890 

34aS0p 

-1-25 

ZTTJOp 

384. 50p 

33&50p 

$130721 

+26.0 

$ii3ao 

$1323.60 

$1107^0 

S2019J 

+8i5 

S1 1005 

$201950 

$1731^0 

$489.0 

*14.6 

$283.0 

$610.50 

5*26.0 

S5707J 

+185 

$6000 

96010 

$521 (LQ 

SS57.D 

+24.5 

SI 0005 

$1014 

$900-6 

$5447^ 

+475 

$55075 

S56Sa0 

$47300 

CS29 

+70 

£688 

£969 

£859 

$1780 

+227 

$874 

$1790 

*1175 

$280.70 

-1JO 

*302.8 

$2982 

$2029 

£97.10 

+O.10 

£106.7 

£97.10 

CPOCK 

Cl 17.50 

+3.30 

£1420 

£117^0 

£97 £0 

66,05c 

+0.35 

80.80c 

86.05c 

62.45c 

dOZp 

- 

3«p 

409p 

3*2p 

$18.17 x 

+0.725 

$19.19 

$16.17 

$13.16 


COMMODITIES AND BOND PRICES 


BASE METALS 

LONDON METAL EXCHANGE 

(Price* tan Amalgamated Met d Tracing) 

■ ALUtaWUM, 907 PURnY (Spar tonne) 



Cash 

* rottts 

dose 

1307-06 

1332-3 

PmkxiA 

1302-03 

1327-6 

Hlgritew 


1844/1328 

AM Oflldai 

13125-13 

1337-5-3S 

Kerb dose 


1331-2 

Open tot 

247,289 


Tata dafly tahover 

48.670 


■ ALUMMUM ALLOY (S per tonne) 


Ctoee 

1295-300 

1306-10 

Previous 

1290-5 

1305-6 

Hflh/low 


1320/1308 

AM Oflldai 

1293-6 

13054 

Karo dose 


1308-15 

Open tot 

4.125 


Total da fiy turnover 

703 


■ LEAD 0 per tom^ 



Ckree 

46&6-9^ 

484.S-&0 

Prevtoua 

463-4 

47B-&5 

HgMow 


488/480 

AMOfltota 

488-7 

483-39 

Kero dose 


483-4 

Open toL 

35,322 


Total tVt turnover 

6^59 


Ctoee 

5706-10 

5775-60 

Prevlotia 

563040 

5700-10 

HtoWtow 


83305740 

AM OfficiaJ 

5706-6 

5778-30 

Kerb dose 


5820-25 

Open InL 

55^81 


Total <My turnover 

10X00 


■ TIN ($ par tome) 




Precious Metals continued 

■ QQLP COLCX (IOC Trey oza Vtroy azj _ 

Sac Day's Ota 

price ctaga tip tor tt W- 

■y 3814 +SJS - 

Joe 380 +aa 387 0 373.1 BUST 18,173 

Jri 3818 *48 - 

tag 3874 +9J) 3SCL0 3718 11858 2JS6S 

net 3904 +100 3829 3*09 1030 » 

Dae 3830 +10.1 3800 38 M 14,186 Z72 

Tetri 150,144 21 £33 

■ PLATMUM NThgX (SOTroy S/boy ozj 

M aa 0 +86 40Z9 3890 113 84 2582 

Oct 401,1 +8J 4Q2J) 381-5 *.444 88 

Jen 4022 *87 3915 30*9 832 11 

Nr <039 +8.7 3S7.5 387.5 336 B 

Tetri *1558 2MB 

■ fVWJADIUMNYMEXPOOTWy ce^ WreyoeJ 

Jot 14075 +250 141X0 135.75 1173 887 

Sep 14080 +280 14000 18550 1333 238 

Dae 14080 +280 141.00 14050 484 

MW 14010 +280 8 

TMri OZ!® 933 

■ SH-VER COMEX POP Troy on Cena/troy orj 

umj 5415 +32S 6*7.0 805J0 1371 222 

Jm 5445 +328 6400 5400 5 

Jri 5471 +328 SS20 5100 84.199 11410 

Sap 8523 +33.1 8574 5144 74*1 1*8 

Dae 6807 +334 5824 8214 11.SZ7 27B 

JM 5814 +315 - 32 - 

lata 118,172 12423 


GRAINS AND OIL SEEDS 

m WHEAT LCE ff par tonraj 

Srit Dafe 

pda Mwfl* W » 

Hu 117 . 25 +005 11*00 11740 383 


SOFTS 

■ QOCOAUSEtptonxi 

Mt Btf* 


MW 10440 +140 - ■ » - 

Tetri 5412 841 

M WHEAT CBT ppoOSu mto; centeW(M» OuriwQ 

jtar 3230 -3/2 32851 SZW 1,780 1J85 

jri 3Z7» -372 33310 32*8140435 614*0 

Sep 39V0 -312 334/6 32M 34440 74*8 

Dm 3S9f* -3/B 344/4 337/0 37460 9430 

Mw 342ft >2ft S*5ft MW W* 

mt asm -w - - MO - 

TbW *17460 81480 

■ fflA 1 7= CST {5400 bu min; canto/58tt» budiel) 

M» 25M +2/4 281/4 257/0 38470 *3405 

Jri 2800 +1/6 2830 2S8« 884*05175410 

ta 2SU4 +1/2 *54/8 250ft 167915 18.179 

DM 2*3/6 +U4 248/8 342M386418 74470 

war 251/0 +0» 254A 2508 38*50 8470 

an 258/D +0*2 28/0 255/0 4.130 540 

fS 1438*301415 

M BARLEY LCE (E par tonne) 


tt 

Yd 


price i 

363 

93 

•toy 

903 

1,028 

89 

Jd 

929 

497 

65 

tap 

947 

1^31 

176 

Dec 

970 

1,17* 

15t 

Bar 

991 

234 

8012 

Ml 

ttr 

Tata 

1004 


852 817 14,288 24*0 


1084*1 114*7 


■ COCOA CSCE no tonnare S/tanned 


■ COCOA pcCOBDR'a/tonn*) 


5906-10 

S4SS-000 


tfgh/tow 


5555/8436 

Jan 

1748 

+0.17 

17JB1 

AM Official 

5457-02 

5520-21 

Jd 

17.18 

+0.16 

1730 

Kerb dose 


5430-85 

Aug 

17J30 

+0.12 

17.15 

Open toL 

17,031 


tap 

1897 

+0.14 

174)5 

Total dafly turnover 

3^85 


Oct 

1897 

+0.15 

17JO0 

■ ZMC, apeciel Ngh grade ($ par tome) 

■a* 

tad 

1890 

+&1S 

1895 

Ctoee 

Previous 

9665-7.5 

9505-15 

077-79 

970-2 

■ CRUDE Ofi. PC 0/taneQ 


rtgMow 8574 986/973 

AM Official BS73-B9 9774-84 

Kerb ctoee 979-81 

Open W. 101444 

Total dafly turnover 21477 

M COPPBt, grade A ($ par tome) 

Close 2019-20 2027-8 

Plevtoue 1960-4 1974999 

HqMow 203871975 

AM Offidri 20093-10 20184-17 

Karts dose 2032-33 

Open tot 180.727 

Toot drily turnover 94480 

■ LME AM Offictri Ot rate: 14981 

LME Glaring C/S rata; 14976 

Spotl 4040 3 idtal.4914 SntfreMaOt Smtotr.4897 

■ HMH GRADE COPPER (COMEX) - 



area 

Btfs 

■tt 

tow 

Open 

tot 

to 

Nay 

9555 

+005 

CT^Kn 

9890 

3J82 

420 

Jm 

9550 

+285 

9605 

9490 

1928 

31 

JM 

95.45 

+280 

peas 

9855 44X85 

*X23 

Am 

9505 

+2.70 

9A50 

9430 

435 

23 

tap 

8*35 

+2.70 

9490 

02.7T3 

7929 

886 

Oct 

94.40 

+285 

- 

• 

202 

15 

Tata 





N/A 

fi/A 


PRECIOUS METALS 

■ LONDON BULLION MARKET 
(Prices suppled by N M RotttsdiBd 

Gold (Troy co.) $ price 

Close 375.10-87590 

Opening 372.70473.10 

Morning fix 37240 

Afternoon fix 373.40 

Day’s High 37330-37530 

Day's Low 3724037240 

Previous dose 3744037440 

Loco Lcfii Mean Oold Lencfing Ratal 

1 month 3-71 6 months 

2 months 12 iraritt 

3 months — 393 


S price 
375.10-37590 
372.70-373.1 Q 

£ eqdv. 

Jte 

Jd 
■ — 

37280 

240231 


373.40 

37520-375^0 

37220-37230 

37430-37450 

saioo 

■P 

Oct 

tor 

Tata 


ENERGY 

M cmae on. NYMEX (42400 US gets. Sftorri) 
Later Bars Open 


08463141,847 


JW 1111 +031 1620 1849 82460 30352 

Jri 1546 +043 1548 15.77 61499 18462 

1545 +020 1549 1547 16485 3486 
Sap 1674 +048 1542 1549 11464 658 

Oct 1175 +049 1540 157* 54*5 87] 

Nov 1540 +021 1580 1572 17*3 *85 

Total 394*7 BLOT 

M «AT9tCI Oft. WttX (42400 US Qrih; BU8 gto) 


price (ta ga S+ taw M Vri 

Jon <740 +048 4825 4731 48411 19.744 

Jri 48115 +0.48 4840 4745 32.148 7432 

tag 4840 +048 <940 4176 13498 1496 

S*> 4870 +841 5816 4860 10,788 958 

Oct SBL5B +031 5048 5040 8424 28 

Me* 5140 +041 6140 *148 5418 406 

TriM 144.T73 33200 

■ QABOB-irep/tamri 

Satt Days Opto 

■ska does Lav tat Vri 

M ay 15278 +325 15340 15125 20404 4242 

Jm 75225 +273 15340 151430 254X36 6.479 

Jri 152-75 +225 15325 15240 15,173 2288 

Jta 16440 +240 15475 15175 6414 719 

Sm 15640 +225 15625 15640 5452 1.174 

Oct 15875 +225 15940 16B2S 6499 302 

Tetri 97,073 164*6 

M NATURAL QAS MTMBt flOyOOO nMtta4 SNanBOt) 


Low M Vd 
2425 15,109 5403 
2460 14248 1439 
2080 10,409 638 

2.106 10495 322 

2.155 74*8 307 

2240 9465 355 

T13JN8 12433 


toy 

11090 

- 

- 

58 

am 

97.10 

- 

• 

138 

tor 

9925 

+QJ& 

- 

- 177 

ten 

10X50 

- 

- 

30 

Ma- 

10196 

- 

- 

5 

tty 

nta 

10375 

■ 

' 

5 

<11 

■ SOYABEANS CBT (SJXttM Wfl5 CHte/BOD butaeQ 

Hay 

657/8 

+w 

672/0 

638ft 23.460 10,100 

Jd 

867/4 

+10/4 

671* 

66774332915178920 

Am 

staa 

♦ION 

668/4 

682/0 6M39 1*970 

$m 

637/2 

+04 

642/0 

623ft 33955 4990 

tor 

81 8Q 

+4A 

623/2 

610/4210925 48775 

Jm 

TDM 

824/0 

+3/4 

S29M 

617/4 21920 955 

714*40259,1*8 


M SOYABEAN OE. C8T gjMOOfcK cantt/tt) 

May 2840 +828 2M9 28.14 5,45* 1.453 

Jri 2828 +821 2841 2842 39421 18704 

tag Z791 +819 2847 Z773 12402 1.123 

Sri 2729 +815 2748 2745 18891 971 

Oct 2627 +811 *8*0 2645 8465 56 

Dm 2540 +801 2548 2828 18853 997 

^ 95483 16489 

m SOYABEAN MEAL CgT(i 00 ana; Wion) 

Mar 1684 +27 1894 1854 3464 2483 

Jri 1892 +24 1914 1887 38125 13282 

tag 1882 +2.1 1983 1881 13491 1,680 

tap 1881 +14 1884 1844 8332 788 

Oct 1817 +17 1854 1817 4479 323 

Dm 1824 +14 1844 1807 18*73 2485 

TMri «>477 21773 

M POTATOES LCE (E/tonne) 

Jen 2625 - 

NO* 980 

Mr 1054 

ter 1374 +18 1374 13*4 528 34 

May 1404 

Jta 1074 

Total 82B 34 


■ FRSQHT (B1FFE5Q LCE ($1Q/lndex point) 


Hay 

Hay 

1470 

+32 

1470 

1450 

878 

120 

Jd 

Jte 

1384 

+44 

1384 

1350 

500 

185 

(tt 

Jd 

1275 

+49 

1275 

1245 

583 

a 

Dec 

Oct 

1358 

+38 

1370 

1350 

Z70 

33 

tor 

JM 

1383 

♦17 

1390 

1375 

I3B 

IS 

to 

Ate 

1385 

+10 

1385 

1396 

15 

25 

ToM 

Tata 





2983 

«a 

■ O! 


Oon 

Prea 





— 

an 

140 

1432 





Jd 


prim date* !*■* 

2425 -0419 2080 
2460 -8015 2486 
2480 -8010 2495 
2105 -0409 2116 
2156 -0402 2102 
2235 4402 2245 


(vaust? 

472 

» 473 


M UNLEADED GASOLME 
HYMEX (42400 US gtaa: CAJS grih] 


p PanoaAo. c Ceres to. x Jm 


Sever Fht 

Prtroy az. 

US cte eqdv. 

Jta 

4896 

+022 

8MB 

48.75 47963 

21923 

Spat 

338.70 

508.75 

Jd 

5045 

+090 

SUB 

ante 23971 

10982 

3 months 

34296 

5129S 

Am 

5050 

+025 

6190 

5090 12928 

4988 

6 months 

34725 

518-40 

tag 

SODS 

+020 

5030 

jjpQO cm 

Ml 

1 year 

357.15 

532ft5 

Od 

4085 

+030 

4070 

4840 1,708 

787 

Odd Colne 

S price 

£ eqdv. 

•tor 

4790 

- 

4790 

4790 2988 

67 

Kiugenwid 

378-381 

253-258 

TOM 




B7738 88723 

Maple Leaf 

385.05-38790 

■ 








*>rj r .+ 

J fftCTa 

Lack of buying Merest cautad e weaker trend 
mutttng to lower prices of white pepper, 
reports Man Preducton. Spot white was offered 
el US$2,800 a to nne and JriyOctobar alte- 
rnant. «-nsw crop, at $2450, dt Btadc pap- 
par pric es could not be maintained either. Faq. 
apot was at 51,550 m tonne end Grad* 1 at 
about *1450. Prices on ship™** ware about- 
the aama. Negative reports about the uopd of 
countries Bca SerawsK and Brazl have tailed 
attoidata buyers so tar. 


Jri 1790 +92 1880 1778 18*16 5,734 

sag 1733 +82 1835 1740 13457 5,143 

■o* 1708 +00 1810 1705 5,489 1412 

JM 1898 +82 1757 1700 542B 530 

ta 1885 +77 1725 1690 1fi*2 132 

Tops <741013412 

M CCT=FEE«CC8CE (3740Qlt>s; eetOftb^ 

gw 10420 +440 10800 10140 *81 332 

4< (0420 +445 r 08-50 10050 38*4414485 

Sap 10175 +445 10870 10810 12472 5281 

Dm 10110 +815 10548 9940 6789 *268 

MW 10240 +865 10525 10800 3494 805 

mt 10340 +875 10525 10140 381 78 

Too, 88412234*8 

■ COFFEE QCO) (US oena/pouxQ 

Mays Price tarite 

ffiwry i 9*48 9175 

IS day Manga 8428 8148 

M No7 P7UJ 4UM RAW 3UQAR LCE (oanta/iba) 

Jri 1140 -0.13 1220 1144 2419 140 

Oct 1142 -808 1147 1172 292 325 

jm 1142 - 

TMri *311 468 

M WHITE SUCAR LCE (S/torew) 

Aag +144 33800 33800 113(7 1.461 

Oct 31130 +820 31640 31240 7.107 731 

Oac 30810 -850 30940 30840 382 105 

Mw 304.10 +040 30640 30220 1403 16S 

Hay 304.10 +840 - - 200 - 

tag 30740 +840 - - 215 - 

Tetri 2032* 8402 

M SJQAR If CSCE (T1240Qbs; cants^ta) 

Jri 1172 -810 1240 1135 513471073 

Oct 1138 -809 1130 1138 34,160 4350 

MW 1136 -812 11-48 11.18 18690 890 

May 1133 -813 1132 1135 2499 172 

Jri 1131 -810 11.42 1135 1394 127 

Oct 11.19 -870 11.40 1139 489 

TaM 10638718384 

■ COTTON NYC6 PftflOOIba; owita/fct^ 

May 84.47 -053 8640 8435 1,174 283 

Jri 8212 -145 8150 81.75 27379 578 S 

OM 7847 -810 7830 7635 4,746 587 

Dm 7*37 +819 7430 7330 18/638 2399 

MW 75.48 +838 75.48 7475 131* *02 

May 7540 +845 7190 7530 016 14 

Total 54467 8361 

M ORANGE JUICE NYCE C15.000P>3; ceraaffbs) 

Way 9835 -345 10240 9940 969 28 

JW 10830 -4 30 70810 10040 180*6 653 

Sta 10275 -445 107.40 10230 2319 . 248 

RM 10375 -425 10845 10175 1,157 5 

Jm 10535 -345 10840 10540 2244 26 

Mw 10735 -185 109.15 107.70 642 24 

Tatai 20,187 884 


VOLUIC DATA 

Open Interest and VMiane date shown for 
comreds traded an COMEX. NYMEX. CBT. 
NYCE, CME. CSCE and Crude 09 era one 
day to sneers. 


INDICES 

M REUIBg (Base: 18/8/31=100) 

May 6 May 6 month ego yaw ago 
18784 18089 1828.7 18473 

M CRB fUfcwae (Bata: 4/9/StelOQ) 

May 5 May 4 month ago year ago 
22411 22430 224.60 20830 


meat and livestock 

■ LIVE CATTLE 0*6 fiftOOBbs; canta/D^ 


+43 93* 895 22720 8*78 ** 


1200 

1170 

127 

3 

Jm 

1 221 

1180 3W7 7,985 

M 

1244 

1202 

14908 

1.473 

Am 

1281 

12*0 

0874 

251 

Od 

1308 

1296 10911 

101 

Dm 

1332 

1310 

4J14 

- 

Fab 



829*0 9913 

IMd 


Price 

riu. ay 

tty 

89033 

*9048 

Jd 

Ado 

„Xft 

a 

NM 

"•e 

u 

Mer 

K 

2923 330 

ttf 

2000 1857 

Tata 


Sail Oafs teen 

pries draani W law tot M 

JM 87425 -1.150 68800 87.700 26422 8,130 

At* 67.100 *1350 68.100 87430 153*8 3431 

DCt 68,773 -1475 70725 89.700 12468 1345 

flap 70775 -4875 71.*00 70.700 738* 1,101 

M 71460 -0600 71400 71.000 3488 481 

Aar 72300 -0525 72.700 72300 13® SSI 

Tetri 88380 18361 

pi LIVE HOPS CUE (40,0000*: Cantsflbsj 
JM 48.475 -0.475 48450 48100 15.075 4338 

JM *9300 +8275 49300 48325 5305 1385 

ta 47425 +0325 47.750 *6350 3328 784 

Qd *1875 +0.425 <1880 41000 2381 519 

DM 44230 +0300 44300 *1200 2305 576 

Fab 44400 +0350 44200 43230 620 84 

TMri W W 


41750 +0350 48300 <1525 318 117 

41250 -0300 45800 444J7S 8300 2,458 

<3350 -0550 43350 42.450 13® 499 

90300 +0960 50300 48300 263 78 

<8300 - - 23 S 

51300 +1300 51300 - 13 4 


LONDON TRADED OPTIONS 

Stake price t tonne — Mta— — Plate-— 
M ALUMMUM 

(B8.7K) LME JU Oct Jd Oct 

1300 52 88 24 36 

1328 39 71 35 45 

1350 27 50 48 57 

M COPPER 

(Grade A) LME Jd Oct -M Od 

2000 71 M 39 81 

2050 48 80 64 86 

2100 28 50 95 116 

■ coma: ICE Jul Sep Jd Sep 

1500 295 259 5 28 

1<wp - -- - 2SO 22V 10 38 

1600 207 168 17 63 

H COCOA LCE Jd Sep Jd Sep 

875 82 93 B 21 

BOO 44 77 15 30 


New Soveraiiyi 


M BRENT CRUDE IPE 

1500 

1550 

1000 


LONDON SPOT MARKETS 

■ CRUDE OP. FOB (per barret/Jun) +or- 

S14i1-4.0Oy +0.445 

Brem Bland (dosed) $1828-630 +041 

Brent Btend (Jun) $18.18-6.18 +0.45 

W.T.L (1pm esO $17.84-7.68 +036 

■ Q(L PRODUCTS WtEpmmpt datvary OF ponne) 

Premium Gaedlne $177-179 +1 

QM OB $154-156 +4 

Heavy Furi 01 $78-80 

Naphtha $153-155 +3 

jet Fuel $168-187 +33 

tatetewt Aigui E w a n awa 

m onmt 

Goto [per troy az# $37530 +0.60 

Star (per trey ca)$ 520.60c +730 

Platinum (per troy ozj $38930 -1.00 

PWtadkim (par 6 oy ct) ST3830 -0.75 

Capper (US prod} 97.00c 

Lead (US prod) 35.00c 

Tin (Kuria Lumpui) 1435r -031 

Tin (New York) 2S230c 

Zinc (US Prime W.) Unq. 

Cento Eta weighbr 127.78p +4.18- 

Sheep (ta welgh4t4 1G8.16P +85T 

Plgs (ta weight} 78.99p +4.W 

Lore day sugar (mw) $280.70 +1.10 

Lon. day sugar (wta) $33a00 +330 

Tata & Lyle export E30030 +230 

Barley (Eng. food) Unp. 

Maize (US No3 Yeiow) $13830 

Wheel (US Oerit North) Cl6S3x +5.0 

Rubber Ud4f 7l30p 

RUbber (Ju 8 f 71.75p 

Rubber(KL RSS Nol Jun) 25830m +138. 

Coconut 08 (Ptrift SS 0 O.CH -6.0 

Patm Ofi (Matoy.n $480.0y -53 

Copra (ptiflS $3713 -43 

Soyabeans (US) £l92-Oy 

Cotton OuUock A Index 8635c -0.10 

Woottops (64s Super) 402p 

C par lema wtaa renarwlM trend, p panoa/hg. c aetata, 
r rtogatoxg. m Mrinyean cartWHg. t MjMn. y +ftn> w 
MW- x Xpc/May. ¥ London PhyricaL § CF Ronwttea. * 
Burion martan doxe. 4 Steep (Law wright pdcad * 
Chwgia on rmak. prmWanri prices. 


a ^ 

fir st 


ad 


WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONDS 

Rad OayH Week Month 

Coupon Date Price change Yield ago ago 


730 7.45 7.12 


Australia 


9.500 

08433 

1049800 

-0960 

Belgian 


7-250 

04/04 

983000 

- 

Canada ' 


6.500 

08/04 

883000 

-1.300 

Denmark 


7.000 

12/04 

90.7000 

+0-480 

France 

BTAN 

8.000 

05/88 

105.7480 

-0.130 


OAT 

5900 

04/04 

88.7800 

-a <40 

Gomany 


6.000 

09®3 

959900 

-0310 

Italy 


8500 

01/04 

963000 

+0.050 

Japan 

No 119 

4.800 

06ffl9 

1083500 

-0.190 


No 157 

4.500 

08/03 

103.7560 

-0390 

NeOwtands 


5.750 

01/04 

92.7800 

+0060 

Spate 


10900 

10/03 

1049000 

+0360 

uk cats 


6.000 

06/99 

92-05 

-11/32 



6.750 

11/04 

80-18 

-27/32 



9000 

10/08 

105-14 

-32/32 

US Treasury 

• 

6976 

02AM 

90-00 

-48/32 



8250 

08/23 

84-30 

-71/32 

ECU (French Govt) 

0.000 

04/04 

an prxw 

-0380 


London ctowift -Ne* Ywx md-day 
t Qua* Pnaudine MMWMWg t» at IU par 1 
Pnom US, UK W Xndo. otfwrx n dadmol 


YMdK Local mwfcW tended 
1 by ngmaldanM) 

Sauce; MMS nomatkxwr 


ECONOMIC DIARY - FORWARD EVENTS 


TODAY: Social Democrat 
tSDP) state conference in 
Munich, European Commission 
and Gulf Co-operation Council 
annual meeting in Riyadh. 
Taiwan's president Lee Teng- 
hui visiting Costa Rica. Nato 
exercises continue in the Medi- 
terranean. UK foreign secre- 
tary Douglas Hurd ends visit to 
Warsaw. 

TOMORROW: First round of 
Colombian presidential elec- 
tions. Hungary bolds first 
round of parliamentary elec- 
tions. Congress in Lisbon 
called Portugal, What Future?, 
with leading politicians, aca- 
demics, professionals and econ- 
omists, 

MONDAY: Western European 
Union foreign ministers meet 
in Luxembourg. Scheduled exe- 
cution date for mass murderer 
John Wayne Gacy in Joliet, Ill- 
inois. Taiwan president Lee 
Teng-hui visits Johannesburg. 
UK credit business figures 
(March). 

TUESDAY: Swearing in of 
South Africa's new president 
in Pretoria. VSB chess tourna- 
ment opens in the Netherlands. 
New Crimean parliament holds 
first session. US vice-president 


INDEXIA 

Technical Analysis A Traded Options Software 

1 INDEXIA Rracarch. 121 High Su Bokhamacd. HP4 2DJ 


Tel (OW2i 6780 15 


Fax <0*43} S7W34 


The rwfiiul (u,| lu, riw muni, inmcic 

Market-Eye 

Isindnn stock mxchamqe 


US INTEREST RATES 

UMcMraa 


BnMrkmffta 

MMab— — 
ftdtetaat t tai u ri w - 


(kemoato. 
Bt* teOBOril. 
5 b Itearafi 
3n Shaw® _ 
3% Op* jaw _ 


Ttamury Bte and BoodYMft 

$62 Tea jaw 

- -- sea tww j*n — — 

CO ffiejaw 

4J8 lOgaw 

U> teww 


H LOWO GILT FUTURES OPTIOHBqjFFE) £50300 64thaaM00K 
SMto CALLS PUTS 


80S 

Price 

Jun 

Sep 

Jun 

Sap 


Open 

Latest 

Change 

Hgh 

Low 

Est VOL 

Open InL 

899 

103 

1-28 

2-38 

1-00 

3-04 


104-13 

103-11 

-1-05 

104-17 

103-11 

287311 

410068 


104 

MO 

2-11 

1-32 


Sap 

103-15 

102-13 

-1-04 

103-17 

102-13 

8,147 

50067 

792 

EaL vok told, can 8335 Pda 2367. Prwtaua day's opan K, Cm, 97748 Pul, 81508 

Dec 

102-00 

101-25 

-1-02 

102-03 

101-25 

417 

33/112 


BOND FUTURES AMD OPTIONS 
Prance 

■ NOTIONAL FRENCH BOND FUTURES frtAUF) 


Ecu 

■ ECU BOW) FUTURES (MAT1F) 



Open 

Sett (Sica 

Change 

Hgh 

Low 

Est voL 

Qpen tot 


Open 

Sett price 

Change 

Hgh 

Low 

Est voL 

Open InL 

Jun 

Sap 

Dec 

11992 

118.52 

117.62 

11934 

11838 

117ftO 

+4X10 

+0.10 

+0.10 

11998 

11890 

117.82 

118.78 

11798 

11794 

255,753 

4927 

180 

126922 

16986 

3906 

Jun 

0644 

8830 

+092 

8890 

85.78 

2920 

8962 


■ LONG THW FRENCH BOW) OPTIONS [MATTF) 


Sarto 

— 

- CALLS - 

— — — 

■ 

— PUTS — 

- 

Prtae 

Jut 

Sap 

Dec 

Jui 

Sap 

Deo 

119 

1.10 

- 

1.70 

079 

- 

333 

12D 

0.82 

130 

- 

136 

- 

- 

ISO 

038 

085 

- 

196 

- 

. 

122 

008 

034 

. 

2.78 

430 

- 

123 

004 

033 

- 

398 

- 

- 


Al Gore visits South Africa and 
Namibia. UK housing starts 
and completions (March). Bank 
of England quarterly bulletin. 
WEDNESDAY: Russian presi- 
dent Boris Yeltsin in Bonn. 
Japan's Socialist leader Tomi- 
ichi Murayama addresses semi- 
nar hosted by Jiji Press. Scot- 
tish Conservatives annual 
conference in Inverness. New 
Ukrainian parliament's first 
session Council of Europe for- 
eign ministers meet In Stras- 
bourg. Index of production for 
Scotland (fourth quarter). UK 
i ndex of production (March). 
THURSDAY: International 
Film Festival opens in Cannes. 
Taiwan president Lee Teng-hui 
in Swaziland. Palestinian. Yas- 
ser Shreide goes on trial in 
Sldon for 1985 murder of Lib- 
yan dissident in Germany. UK 
employment, unemployment 
earnings and prices. UK bal- 
ance of visible trade (Febru- 
ary). 

FRIDAY: Final day of Scottish 
Conservatives annual confer- 
ence. to include address by 
prime minister John M^jor. UK 
usable steel production (April). 
Bank of En gland capital issues 
and redemptions (April). 


Eat vri. taw, Cate SSAIO Pure 57#e . Pftau* d tea opan tau CWa *033* Pi*a taOta 


Germany 

■ NOTIONAL GERMAN BUND FUTURES (URF^’ OM25Q.OOO TOOtha of 10065 

Open Sett price Change tfigh Low Eat vet Open tot 
Jun 94.44 9433 +031 94.72 9330 197606 189448 

Sep 8330 9431 +022 9436 9&40 2342 16883 

■ BUND FUTURES OPTIONS (LiFFE) QM2S0300 potola Ot TOOK 

StrSw — — CALLS — — - — PUTS 


Price 

Jun 

Sep 

Jin 

Sap 

8460 

067 

136 

064 

1.34 

9500 

043 

1.14 

090 

2.13 

9660 

028 

094 

133 

2.43 


E*t voL neri. Cwa 11033 Pun 13831. Preiioua days open H, cate 320M0 Pua 371518 


■ NOTIONAL tteOtUH 7BIM GERMAN GOVT. BOND 

(BOajgjFPEr OM2S0300 1000» Ot 100% 

Open Sattprlce Change Ugh tow 

Jun 10032 lOail +U16 10002 1003Q 

Italy 

■ NOTIONAL ITALIAN QOVT. BOND (BTP) FUTURES 

(UFFSr Lira ZOOm IQOthe ot 100% 

Open Sattprlce Change Mgh Low 

An 11030 11139 +0.71 11138 11070 

Sap 110*5 11084 +086 11070 IIOIQ 


Eat, vri Open tot 
8 1789 


EaL vri Qpen toL 
53787 77415 

<2S 2338 


■ ITALIAN GOVT. BOND (BTP) FUTURES OPTIONS ffJFE) Unaoon TOOtha ot 1004* 


strata 

Price 

Jim 

■ CALLS 

Sep 

Jin 

- PUTS 

Sap 

11100 

1.16 

238 

077 

2.72 

11160 

091 

2.13 

192 

299 

11200 

new 

193 

139 

329 


EM. vri. end. CMa 76B Ms *44. Pimm I tart opan tot. Ota Biota Pun 78109 

Spain 

■ NOTIONAL SPAtra BOW FUTURES 

Open Sett price Change Hgh Low Est voL Open InL 
Jkto 9630 9539 -008 96.75 95.18 40484 111,784 

Sep - 98.90 853 


■ NOTIONAL UK QILT FUTURES {UffQ- gSOJQO 32fXle Of 100% 

Open Senpitoe Change Htfi Low Esc mt Open InL 
Jun 104-11 103-14 -0-28 104-13 102-88 99906 126207 

Sap 102-17 -0-29 0 398 


Frl 

Dffifs 

Thur 

Accrued 

xdedl 

May 6 

change % 

May 5 

totarest 

yMd 

12217 

-an 

12231 

199 

434 

14210 

-045 

1427$ 

IS 

532 

16007 

-097 

16130 

239 

498 

17996 

-130 

18232 

039 

6.12 

13099 

-037 

14018 

199 

492 


FT-ACTUARIES FIXED INTEREST INDICES 


1 Up to 5 yaara(22) 122.17 -0.11 

2 5-15 yaee <231 142.10 -045 

3 Over 16 yaara« 18037 -057 

« towtoamateae (5) 17938 -130 

6 Al ftocta (61) 13039 -037 

Low coapoci yiato — 

Ytatoe May fl May 5 Yr ago /flgh 

6 yra 732 733 7.11 732 B/S 

18 yre 833 016 837 833 

20 yra 833 8.18 030 833 (8« 

toed-t 832 831 834 832 (8/J 

tndeK-Orfitod toflaflon rate 616 ■ 

Up to 5 yra 334 331 2.73 3.58 (V* 

ower 6 yre 330 338 338 330 ($« 

PebaAloene — — Syaara 


■ NOTIONAL LONG TBUfi JAPANESE QOVT. BOND FUTURES 

(L1FFE) YIQOrn IQOths of 100% 

Open does Change tfigh Low E*t- vri Open tot 
Jun 11233 11233 11234 1655 0 

- UFPE conncto rated on APT. M Opm totetet te-wh proHaue ■%- 


8 Up to 5 yam CO 
7 Owr 5 yen (11) 


9 Data and tom (7Q 129.43 


Frl 

May8 

oey* 

change % 

TJxjr 

May 5 

Accrued 

taareat 

ywd 

18434 

_ 

18494 

0.49 

293 

178.18 

•093 

178.78 

090 

199 

178.17 

-039 

17898 

086 

1J7 

129.43 

-1.15 

13093 

223 

4.17 


537 09/1 
030 (200 
041 non 
832 P471 


May 6 M8y5 Yragc 

8.12 834 730 7.12 (W5 

333 825 848 833(8/5 

833 825 839 833 (6/5 

Wtetton rote 10% 

2.80 237 132 233 (US 
3^3 X40 331 3.43 (WS 
— IS years 


632 (ian 

639 (2071 
042 &on 


1.10 (18® 
2.70 00/1) 


■ - Htoh coupon ytetrt • 
Mayg Mays Yragc High 

823 8.15 7.63 823 (6/5 

832 835 874 &82 B/5 

3-49 8.42 8.78 8^49 S/5 


931 9.45 9.06 931 (B/5) 7.19 (1QT1) 9.45 828 937 *46 


25 years 

739 (2071) 939 927 9.72 9.38 (B/5) 


Average gross radaniptton yields are shown above. Coupon Berate: Low: 0%-7V»4; Madksrc 396-10^54; High: 119* and over, t Ftot yield, ytd Yaw to data. 

FT FIXED INTEREST INDICES GILT EDGED ACTIVITY INDICES 

Mays May 5 May 4 May 3 Apr 29 Yr ago Hfrr LoW May 5 May 4 May 3 Apr; 

Goto. Sees. (UK) 9339 9427 9438 95.18 95.66 94.78 107.04 03.89 Gtt Edgwl bargafeo 1033 95.1 883 88 

Fried biteraat 11231 11238 11337 11435 11432 111.Q2 13337 112.91 5-day average 97 A 100.1 1023 103. 

• tor 199*. QoMriiM O ec u taaa Mgh rinca eamp te flo n: 1ST AO (Bn/38), low *0.18 (3 fUTSi. Reed knaraw Hgh atom mn eteaSBiv t3337 (21/1/94} , tow 5053 (Vi/76 ) . Bods 100: Omm 
» and Fried toaraat 1928. SE aaOaRy Men monied 197* 


UK GILTS PRICES 


pan 


7.49(2071) 


116.1 

1103 

MmlVH* 


_YWd_ _19M„ 

Mata H M Prtcat + or- rttfi law 


— TW. -1994- 

Maljri Mcat+cr- Hph Lew 


0MC9E +0f" »» U* 


SbortT Otaa ta ri Fta tad 

TlaaL lOpc lA ISUtt— 195 437100>lte 

Bta12<2Pc19M 1234 505 102A 

Hen 9pc I99*tt U3 5.16 101 U=s 

ItaC 1996 11.48 82S IKfi 

Eahtoc Set 90-65 106 AX 98 

1 Mate 1995 U8 587 105i 

TmaalZripc 1665# 1125 8.1*109^0 

1<pe 1998 IM9 U7 1124 

15Vucl903tt 13.19 685 115B 

Eah13Wl«aett 1132 637112LM 

ConradaQ 10x1996 — 940 MSIOBtiil 

Treea 13^96 1B9m — 11^ 728 11<H 

BrtWiasttW 875 725 KITE 

TmteM.BC 199m 8*8 7S2 1Q3H 

Endi 15pe 1997 1221 738 121H 

BrilK 1998 920 738 10B 

Trees 7ri*1lG3#- 728 7.75 9S£ 

Tito* Bripe 1235-98)?- 895 730 S7i 

1*pC9B-1 1134 UQlXHua 

TtotelSripctatl 12.17 7 SB 127% 

BttiaeiaSB 1M7 837114*3 

Trite 9>j9e1B9B« 839 801 IQSjl 


RaariFltoteTMrt 

&*P 12^1898 1055 OIB 1161, 

Trite 10^1999 057 BJJiOBrial 

Trees Spe 1890 ft 882 735 82& 

CnmotalOripcim. 041 82D108flal 

Trass RD Ra» "99 - - S9Bd 

Bpc 2000ft 888 OI2 I0BJ 

Trees 13PC2M0 IS. 68 828 121)3 

10PCBD1 023 837 1 1SA 

7psW ft 749 018 9^8 

7pcTf1 A 730 820 BSi 

9ripe2Q02 938 848 10^1 

85c 5003ft 8.18 880 97B* 

tape 2003 Oil B<7 1000 

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FINANCIAL TIMES WEEKEND MAY 7/MAY 8 1994 


13 


V* *•->« \. t 


*i*. 

* *Kt tar,.. 


CURRENCIES AND MONEY 


MONEY MARKET FUNDS 


MARKETS REPORT 


u 

* 5 SKI 

,h» 


Dollar steady 


QolKar 

DM pars 

1.72 -r — A* ■ — : •- 


Van perS 
“■ 105 


Sterling 

Sper'E 

1.52 


U*Ni\ 


■ mb n: : 


l.fiMV; 

A uRrw , 


**»• - 

Vv*. -f r-n 


INDU'I 




Foreign exchanges had then- 
hopes dashed yesterday when 
the US Federal Reserve fail pH 
to raise interest rates after a 
buoyant set of jobs data, writes 
Philip Gaurith. 

Markets were expecting that 
the Fed might tighten policy as 
a follow up to the concerted 
central bank intervention that 
took place on Wednesday to 
support the dollar. 

The US currency rose by 
□early a pfennig when the 
April non-farm payroll rose by 
267,000, compared to a market 
forecast of 170,000, increasing 
the prospects of higher rates. 

With the Fed deciding to 
keep its powder dry, however, 
the dollar retreated from ear- 
lier highs to dose in London at 
DMZ.6661 from DML6682 on 
Thursday. Against the yen it 
closed at Y102.780 from 
Y1Q2.695. 

Sterling's initial response to 
the very poor showing of the 
ruling Conservative Party in 
local elections was subdued. 


POUND SPOT FORWARD 


but it later lost ground in after- 
noon trade to close at DM2.4869 
from DM2.4969. 

■ The market probably ran a 
little ahead of itself in expect- 
ing the Fed to lift rates imme- 
diately. The central bank has 
recently been scrupulous in 
separating rate moves from 
spkific data. 

But what the performance of 
the dollar did maftp dear is 
that the Fed will have to act 

■ Porod tn Maw York 

Hay 8 — late*—- - ftw. don - 

Eepol 1.4833 IAMB 

1 a* 1.4824 1.4872 

3n* 1.4916 1.4838 

1 jr 1.4912 1.4926 

either through intervention, 
higher rates, or both, if the 
currency is not to test new 
lows. Once the initial flurry of 
enthusiasm about the Jobs data 
had dissipated, the downward 
trend reasserted itself. 

Analysts yesterday were 
agreed on two points. First the 


1.88 


i- ---■ 104 


rf- • 102 



1-50 1 I- 2.52 



DM per 2 
— 2.54 


French franc 

FFr per DM 

3.41 " 


fe CM MB 



■ Attffl 1994 May 

SomeaPraaplaw 

dollar’s weakness is linked to 
the general fragility of US 
asset markets, though there is 
little clarity about which is the 
chicken and which the egg. 
Second, the Fed will have to 
act decisively to calm the 
nerves of dollar and US asset 
investors. 

Mr Avlnash Persaud, head of 
global currency research at JP 
Morgan (Europe), nmnwigntod- 
It baa got to nwiw the markets 
think that it has knocked infla- 
tion with a sledgehammer, and 
that nothing more is needed.” 

Given current market senti- 


Aprfi 1984 


April 1994 


April 1994 


ment, anything short of a 50 
basis points rise in the dis- 
count and federal funds rate - 
currently at 3 per cent and 3.75 
per cent respectively - is likely 
to disappoint and y^d to a fur- 
ther seU-off of thp d ollar 
An indication of prevailing 
sentiment is provided by 
S.G. Warburg, the UK invest- 
ment hank, which this week 
revised down its short-term 
dollar forecasts, predicting that 
it will fan below DM1.60 and 
Y100 over the next three 
months. 


■ In Europe favourable politi- 
cal developments helped the 
Italian lira which closed at 
L961 from L964.3 against the 
D-Mark. The Spanish peseta 
finished slightly weaker at 
PtaS2.49 from Pta£&25 against 
the D-Mark. 

German call money traded 
easier at 5.35/5.40 per cent from 
5.35/5.45 per cent. There was 
very little movement in the 
futures market with the June 
euromark contract closing at 
95D4 from 95.05. 

■ The Bank of England pro- 


■“ 3 43 Ill / 


April 1994 


vided UK money markets with 
late assistance of £15m. Earlier 
the Bank had put £771m into 
the market after forecasting a 
liquidity shortage of £900m. 

Activity in the sterling 
futures market was low. The 
June contract finished 
unchanged at 9-L59. 


Money Market 
Trust Funds 


CAF Btaany M an an rnr nt Co ltd 
UtteteuyfaM.TMbttpIlBUn 0732 779114 

QtaWlOnraMFiM.-] 4 71 -I OjMA 
Derosa o*e« £ i ntem «flt -I too h-un 

Depi*t, Dm* E2 ntan I 4 91 - 1 5 001 J-MBl 

Ite COIF Ctarita OuetH taowit 

2 F*» tarot total fCTYWD OTT-MfllglS 

Drpost i486 -I IKlHMi 

CM. Bd.afRa.tl Ctaatft of E ag ta n rtt 

3 Far Baete. lad* EE2Y MO OM-54* IBIS 

Dasote 1 481 - | swls-ta 


Money Market 
Bank Accounts 


Qnrits&Ce 

**S M Unto- «3B OQS 


I Strom tore. utaiiCM Mil 071-CJ'OTO 

ftnnnriamaaviia .1 *W 0 -1 -1 

Dao Hens Sank (London) PLC Premier Act 

IQMed tart total tCW** 071-808 1B18 

E9MW- 175 5M « 

n 0 . 001-00 mc *s 3i9 4 ja at 

CXXHMO.OW 175 7JI IM » 

fiMnotAccaM 2.75 208 27S Or 

Dsnatam Tst P fc-tara nt u m 500 Acc 

B9JMSLH4MWSBU340U 061 -as; MM 

CIMOD* BHOK |7J5 5AJ75 - fcjfi 

aaaoo»im. . [ 7M uq 7A|««m 

DMtHHlifial tt00 60) I 7 7 1 

FfebKv Money Market Accoanl 
RdrfB, ftsksnei Santera LB. Mumna Rks. 

n-r«uno lire itoi Jao Ob 

MJHO-C40.MB I 4-25 3187 I *JE OB 

ES0.WD-t4W.M9-J 4175 3858: ( *06 1 OB 
CMMOCk IWRtteMUBBinwB 

Haiitax B)dg Soc Asset tesarn Cheque Acc 

In*T HU. Ifaklm KXI 2RG BrSWM 

— i te rn — —m i 

CSO 000 and JBnt I 580 4J0 577 9? 


M EM HE 


JO OrrFtart Loren ECl 


560 

420 

S3 

car 

5 25 

3X4 

5X5 

QB 

4 SO 

JCO 

499 

OB 

425 

3.19 

4X2 

OB 

525 

394 | 

us| 

Qtr 

4 rs 

356 1 

4X4 

Bt 

4.50 

Ui 1 

*501 

Ob 

425 

3 19 1 

4jrl 

QB 


uptois.a» 

C10u000-C74JM 

Duai-mn _ 

CSOjOOO or iron 


1 5J 0 373 I 5.1 

— -_Ta!» Z4J75|JJ0| Mai 
80 1*00 300 407 Mm 

40 _ 4iO 3375 1H Um 
1 *75 35875 I *05 1 Mai 


JuSai Hodae Bank LEI 

lOWIMWf fKcmhoi Mft OKSJ 

MO MOD DOOM Acc 600 430 I 809 1 

IMtatolOlU I 573 431 5 sal 
UteFMtbBbnEiBxl B.n *jr I 530 1 

Huabtedytfa manes Group 
5 MOM* Kn. irnak. BamoncM 0758 7 

150000- I 575 33* I 53Sl 


KOI S E S 

Hwgary 151042 - 151220 101610 - 101660 
kxa 28257X5 - 76*1 DO 174800 - 175000 

feroril 0.4431 - 0444S 02971 - 02979 

feted 332902 - 333723 2Z3200 - 223600 

AO** 278118 - 2775.12 185100 - 185000 

UAL 5.4785 • 5.4805 16715 - 16795 


ANed Tnot Boak Ltd 

a Damns tro. unto*. EC4B 3AY 0,l-CS«n 

FOMH££j0Ol.) 864 *60 8M VMM, 

WBK83IBI.I SBS 08 565 YBM, 

TDtMAIELOaUI 5M 433 56* VsM, 

MBWI££K>1.) 533 399 533 Ymriv 

MUiizaoi-i <00 roa *«/ moi 

W8M(E2001H *OP 300 *07 Itti 

PtbukjTLSSA «B7 515 eat Y Hrtr 


i Enutss Bank Lid 

H.BuigacsHiiM58A 


Closing Change Bldtoffor 
mid-point on day spread 


Day's Ifld One month Three months One year Bank of 

high low Rota MPA Rate MPA Rteo MPA Eng. Index 


DOLLAR SPOT FORWARD AGAINST THE DOLLAR 


dosing Change Bid/offer Day's mid One month Three months One year J.P Morgan 
mid-point on day spread high low Rate 96RA Rate 96PA Rate HPA Index 


HI Kfl 5 9*0 04**EB**4 


- 1 00 075 1X0 

ISO 7X3 366 

325 181 18? 

_ 4X0 J00 407 

— MS 310 413 

_ 4.78 350 4 85 


Austria 

(Sch) 

17^198 

-0.0401 

102 - 2S4 

170011 170001 

17^16 

02 

17.6104 

02 

- 

- 

1130 

Austria 

(Sch) 

11.7428 

+00105 

400 - 450 

11.7725 11.7225 

11.7675 

-1.5 

11.7675 

-09 

11.7428 

02 

10X0 

Belgium 

(BFt) 

61.1876 

-02108 

629- 122 

51.4990 51.1070 

61.1828 

ai 

612126 

-02 

510126 

03 

115.1 

Bo&isn 

(BFt) 

'ZA.'vmn 

_om? 

030 - 130 

344650 342750 

34243 

-12 

34278 

-02 

34243 

-0.1 

104.4 

Denmark 

(DIO) 

9.7343 

-0.0382 

295 - 389 

9.7B23 07160 

07445 

-12 

9.7578 

-1.0 

07676 

-03 

114 3 

Denmark 

(DKr) 

05243 

-00035 

233 - 253 

65524 

6.6184 

A ItM 

-22 


-1.7 

62605 

-02 

10X7 

FHand 

(FM) 

&007a 

-00343 

583 - 776 

01250 84470 

. 

. 

- 

- 

- 

- 

810 

Ftatond 

(FM) 

54068 

-00068 

016 - 121 

5.4408 

5-3006 

5.4108 

-02 

5.4178 

-08 

5.438 

-0.4 

76.7 

Franca 

(FFl) 

&J5B27 

-00342 

187 - 267 

8.5712 05116 

8^279 

-0.7 

85337 

-03 

8,4869 

03 

1070 

Franca 

(FFr) 

X71 23 

-0.0047 

115 - 130 

6.7420 

5.7075 

5,7206 

-12 

X7T91 

-12 

6.7163 

-0.1 

104.0 

Gemuny 

(DM) 

2-4858 

-0011 

844 - 873 

24088 04821 

04857 

ai 

24853 

ai 

2468 

OB 

12X3 

Germany 

(D) 

1.6661 

-0.0021 

667 - 605 

1.6765 

1.6644 

1.8678 

-1.1 

1.B685 

-06 

1.6588 

02 

104.7 

Greece 

(Or) 

305317 

-2.061 

821 - 812 

368273 365.198- 

w 

- 

- 

- 

- 

- 

- 

Greece 

(Dr) 

244.850 

-0.6 

eoa - ioo 

246200 245.100 

248.8 

-184 

255275 

-182 

284.85 

-162 

701 

Iratand 

m 

1.0204 

-00032 

255 - 273 

1.0321 1.0221 

1XJ27 

-08 

1.0283 

-07 

10303 

-04 

10X5 

Intend 

0£) 

14637 

-00001 

529 - 544 

1.4581 

14485 

14511 

2.1 

1.4473 

12 

14382 

1.0 

- 

Italy 

(U 

2387.72 

-1028 

580 - 964 

240834 233332 

2393.87 

-3.1 

2403.97 

-2.7 

243627 

-20 

782 

Italy 

W 

180035 

-72 

960 - 110 

161225 169726 

160635 

-4.1 

161325 

-34 

1637.65 

-22 

7X6 

Luxemboug 

(LFt) 

51.1878 

-02108 

629- 122 

51/4980 51.1070 

51.1826 

ai 

512128 

-02 

610126 

03 

116.1 

Luxembourg 

fLFr) 

340080 

-0002 

030 - 130 

34.4850 342750 

34243 

-12 

34278 

-OB 

34243 

-ai 

104.4 

Netherlands 

(H) 

2.7917 

-OCH25 

900 - 834 

2^084 2.7887 

2.7917 

oa 

2.7911 

ai 

2.7704 

08 

1180 

Netherlands 

R 

10711 

-00024 

706- 716 

1.8810 

12693 

12727 

-1.1 

1.6737 

-0.6 

1.8783 

-0.4 

103.8 

Norway 

INK/) 

10.7855 

-00528 

804 - 906 

KL8S73 107843 

10.7799 

06 

107924 

-03 

107838 

OO 

840 

Norway 

(NKr) 

72289 

-00124 

279-299 

72692 

72031 

72378 

-12 

72501 

-12 

72609 

-04 

94.9 

Portugal 


255222 

-0995 

061 - 382 

257J41 255212 

257.197 

-AS 

250142 

-AS 

- 

- 

- 

Portugal 

(Ea) 

171.730 

-012 

680 - 780 

172250 171.100 

172265 

-8,6 

174.93 

-72 

179.93 

-12 

92.9 

Spain 

(Pta) 

205.001 

-0383 

868 - 144 

206.637 204.423 

2T&521 

-on 

206466 

-23 

209221 

-2.1 

840 

Spate 

(Pta) 

137400 

+018 

350 - 450 

137260 136.850 

137285 

-4.1 

138205 

-32 

140.775 

-22 

800 

Sweden 

(SKr) 

11.4989 

-00544 

904 - 083 

11.5744 11A717 

115209 

-22 

11^669 

-23 

110758 

-io 

770 

Sweden 

(SKO 

7.7077 

-00119 

038 - 114 

7.7450 

7-6765 

7.7312 

-3.7 

7.7705 

-3.3 

72797 

-22 

822 

Swttzfifland 

(SFri 

2.1132 

-00102 

120 - 144 

2.1284 2-1105 

2.1112 

1.1 

2.1067 

12 

2.075 

1.8 

117.7 

Switzerland 

(SFr) 

1.4164 

-00023 

180- 167 

1.42S3 

1.4146 

1.4165 

-0.1 

1.4143 

06 

12957 

12 

10X9 

UK 

(Q 

- 

- 

- 

. 

. 

- 

- 

- 

- 

- 

790 

UK 

CO 

1.4920 

-00048 

915 - 925 

1.4983 

1.4885 

14907 

12 

1.4896 

07 

1.4888 

03 

8X4 

ECU 

- 

12909 

-00081 

002 - 916 

1-2979 12805 

12917 

-0.7 

12926 

-05 

12887 

02 

- 

Ecu 

- 

1.1558 

+00017 

555 - 580 

1.1569 

1.1510 

1.1541 

1.7 

1.1525 

1.1 

1.1537 

02 

- 


BMfcoMntend HMt latmst Cheque Acc 

38-40 M8na.5ioooJEi ia otumomo Sg l ? ! SSgjJ? fc 


5 BMSn «DT. tank. BawencM 0756 750000 

C50000- I 575 30* I 535 1 OB 

leapoid Joseph & Sore Uadtad 

38 EwMiiib are, ureal EB V.T* 071-5* 7273 

ETiocnnDo.ooo ...I *60 * ono I u too I Q» 

(laaooi pta*_ I * rs *B4oo Istesol Ob 

Ktafnwort BanaoB Lid 

i58hoeaB Iwm at Ixwxmi MBS JSI 071 -»7 1580 
HJ CA |C7.500*I 1*25 31873 I 433l Utey 

KUoMOrt Bensea Prtvato Bank 
D ere m noreon Baiooa mom Ntaoares lie 

ib* urea Im ere. LmBBKHm 071-707 1548 

H1CA 1C. 500-1 I 465 a 1875 I 433 1 Da*y 

Uoyds Baidc - tavostmeat Account 

71 irettvo SL usuon H3> IBS 0773433372 

fioaooo Bed am SJ5 10*1 535|,re1f 

150X00. 5 15 186 I 515] Vren 

05.000- 485 171 *J8 1VM) 

CID.OOO-- 4 75 158 I 4.7SI Vrei, 


»-»M8na.s«xeBa.Ma 0753510510 

nocoo ♦ 8600 E83S | 1548| Or 

DAO-aes <260 1373 I ZSI I Ob 

Bank of Scodaad 

387Hi«s(*ieMM9.IC2r:Dt 071-6015440 

MiO84BaS0»42Ua- I XSO zsc I 3661 MB 

05000-0*9999 175 181 I HE BBh 

C2HMM0- I 500 STB I 5.12 1 MB 


Argentina (PbooJ 1-4888 -0-0062 882 - 884 1.4950 1.4064 

Bran) (Ci) 2107.19 +27-41 847 - 791 2114.00 2O7U0O 


Atgendna peso) 08879 

Braz* (Ct) 1412.33 


Canada 

(CS) 

22624 

-00123 

813 - 634 

2.0741 

22604 

2.0638 

-02 

22684 

-12 

22884 

-12 

862 

Canada 

(CS) 

Mexico (NawFaed) 

4.9385 

-0.0113 

294 - 476 

42470 

42294 

- 

- 

- 

- 

• 

■ 

- 

Mexico (NewPeso) 

USA 

(S) 

1.4920 

-00048 

915 - 925 

1.4883 

1.4895 

1.4907 

12 

1.4896 

07 

1,4868 

03 

65.4 

USA 

CS) 

Padfic/MStMe Eaot/Atrtca 












PtortfleADddie East// 

Auatrafia 

(AS) 

20863 

-00078 

848 - 877 

22839 

22792 

22846 

02 

22824 

0.7 

22805 

03 

- 

Auafrala 

CAS) 

Hong Kong 

<HKS) 

112282 

-02361 

236 - 328 

112744 112094 

112152 

1 A 

112098 

08 

11.4007 

02 

- 

Hong Kong 

(WO) 

India 

M 

462041 

-01471 

809 - 272 

462940 4X7330 

. 

. 

• 

- 

- 

- 

- 

Incks 

Pa) 

Japen 

(Y) 

153248 

-0281 

252 - 444 

154240 15X140 

192268 

32 

152^36 

22 

14X263 

XI 

18X3 

Japan 

ro 

Malaysia 

(MS) 

X9419 

-0.0447 

391 - 447 

3.9735 

32381 

- 

- 

- 

- 

- 

- 

- 

Malaysia 

CMS) 

New Zealand 

(NZ^ 

2.5885 

-00042 

845 - 884 

22958 

22620 

22894 

-12 

22837 

-1.1 

7Ptm 

-08 

- 

New Zeeland 

(NZS) 


PMpptnes (Peso) 40.5825 -0.1292 451 - 199 400199 40J4S1 - - - - 

Saud Araftte (SR) 5^954 -0018 933-975 5.6189 5.5864 - - - - - 

Singapore (SS) Z3216 -0.0098 200-231 2J3332 13192 - - - 

S Africa (Pom.) (R) 53888 -0.0617 358 - 417 5-4238 53327 - - - 

S Africa (Hn.1 (R) 7.0050 -5.1845 877 - 222 7.1619 3.9622 - - - - 

South Korea (Won) 120487 -1.68 409 - 584 1208.93 1201.49 - - - 

Taiwan (TS) 393977 -0.0961 844 - 110 38.7400 393200 - - - 

Tholand m 373010 -ai571 709 - 110 373830 373610 - - - 

tSOR nxs tor Slay 5. BWAtew RBeads h to Pound Spot cabla MMiw *x% the MM Im tteaknal ptaoes. Frirvwrt ruroo ore not <*ocOy quoted «a I 
but avknpeadby curort Herat nan. StartogindM ctecutatod EymoEtakof Entdond. Boas smapB 1986 » 1003d. Ofcr mtl Mld-fteso bi be* 
Dm Dote are Dtein dgrlmd tan THE VWARBJ1EM CUOSNG SPOT RATES. Same ettum mb mredad By d«a F.T. 


-00009 

978 - 979 

09979 

09978 

- 

- 

- 

- 

. 

. 

_ 

+222 

232 - 234 

141224 1412.32 

- 

- 

- 

- 

- 

. 

_ 

-02039 

820 - 825 

12850 

12807 

12845 

-12 

12886 

-1.8 

1.4046 

-12 

tan 

+0003 

050 - 160 

32150 

32500 

3211 

-04 

32128 

-02 

23202 

-02 

- 



- 

- 

- 

- 

- 

- 

■ 

■ 

1001 

-02006 

978 - 988 

1.4000 

12837 

12995 

-1.1 

1.4042 

-1.7 

1.4148 

-12 

8X8 

+0.0004 

262 - 272 

7.7272 

7.7262 

7.7297 

-02 

7.7357 

-05 

7.7604 

-04 

_ 

*02012 

660 - 750 

312775 312650 

31 >135 

-22 

3127 

-X6 

. 

. 

_ 

+0085 

750 - 810 

10X250 102.650 

10X615 

12 

10X205 

22 

99.93 

22 

14X7 

-00215 

410 - 430 

22550 

X6385 

?ms 

X2 

22195 

X4 

? ftft? 

-1.5 

_ 

+00027 

328 - 343 

1.7361 

1.7304 

1.7348 

-09 

1.7394 

-12 

1.7813 

-1.6 

_ 


500 - 500 

272500 27.0500 

- 

- 

• 

• 

- 

- 

- 


PMtopfciea (Pes*4 272000 * 500 -500 273600 273500 

Saud Arabia (SR) 3.7503 -03001 501 - 504 37504 37501 

Stnoapore fSSS i fiSBO -03017 555 - 566 13580 1 3555 

S Africa (Com.) (R) 33783 -03432 775-790 3.6285 33880 

S Africa (Fin.) (R) 43950 -0.085 850-050 4.7050 43460 


3.751 -03 3.7533 -03 

1.5554 03 1.5549 03 

33948 -53 33208 -48 

4729 -8.7 4789 -8.0 


i OjOSNQ SPOT RATES Some votae « nrextad By ta F.T. 


South Korea (Won) 807.550 +145 300 - BOO 607.800 806300 81035 -43 814.05 -33 

Taiwan (T5) 263400 +032 400 - 400 263400 263300 28.6055 -3.0 26.706 -23 

Thaland (Bt) 25.1950 -0325 900 - 000 253000 25.1900 25375 -3.8 25.4 -33 

1S0R ooe tar Me 5. DdWtar axmas fet ttte Dote Spat Mbte Sim orSy IbB hal Una decimsl ptoore. r oreanl omaara n 
bu mb tatef by currant InMreR iteaa UK iratand A ECU mo quota m UB eurancy. IP. Morgen nomta koflcoo May S Be 


3.7848 -0 A 
13535 03 
3.7138 -33 


25.92 -23 
! cSracdy cyaoead to 1 


CROSS RATES AND DERIVATIVES 


EXCHANGE CROSS RATESI 


IEMS EUROPEAN CURRENCY UNIT RATESI 


--4M- 

May8 


BFr 

DKr 

FFr 

DM 

l£ 

L 

n 

NKr 

Ea 

Pta 

SKr 

SFr 

e 

CS 

S 

Y 

Ecu 

rs-* ■ 

Mgiint 

(BFr) 

10 

1922 

1XS5 

4.855 

2205 

4866 

5.453 

21.06 

5002 

4005 

2X47 . 

4.129 

1254 

4.029 

2215 

2992 


>**'« -• 

Danmark 

(DKr) 

5228 

10 

X755 

2253 

1254 

2453 

XB87 

1127 

2832 

2102 

1121 

XI 71 

1227 

X118 

1233 

1572 

1236 

- - 

Franca 

(FFr) 

6006 

11.42 

10 

X916 

1204 

2902 

3275 

1225 

3006 

2406 

1X48 

2/479 

1.173 

X420 

1.751 

1792 

1215 


Germany 

(DM) 

20.60 

X917 

XA2B 

1 

0413 

961.0 

1.123 

4238 

10X1 

8X49 

4228 

0.060 

0402 

0830 

0600 

61.69 

0 920 


Intend 

TO 

4928 

9.487 

8206 

X422 

1 

2327 

X720 

1051 

24X7 

1992 

1121 

X0S9 

0975 

2210 

1-454 

149l4 

1258 


My 

(U 

X143 

0/408 

0257 

0104 

0243 

IOO 

0117 

0/461 

1073 

8285 

0482 

0088 

0042 

0288 

0062 

6.420 

0064 


Netherlands 

{FO 

1824 

X488 

3.053 

0290 

0288 

8552 

1 

3282 

91.80 

7X45 

4.120 

0757 

0358 

0739 

0235 

54.93 

0463 

'.r J. 

Norway 

UNKr) 

4728 

0030 

7205 

2205 

0262 

2216 

2289 

10 

237.7 

1902 

1067 

1260 

0228 

1213 

1284 

1422 

1.198 


Portugal 

CEs) 

1928 

X799 

X326 

0070 

0400 

93X1 

1289 

4208 

IOO 

8022 

4.400 

0825 

0390 

0805 

0282 

6924 

0204 


Spam 

(PtN 

24.97 

4.748 

4.157 

1212 

0.600 

1165 

1281 

5269 

1252 

ICO 

5210 

1.031 

0.488 

1208 

0728 

74.78 

0830 

Pfc, • . • - 

Medan 

(SKr) 

4420 

X464 

7210 

X181 

0882 

2077 

X427 

9274 

990 a 

1782 

10 

1237 

0270 

1.793 

1.297 

13X3 

1.123 


Switzerland 

(SFr) 

2422 

4207 

4233 

1.178 

0488 

1130 

1221 

X102 

1212 

97.02 

5.442 

1 

0473 

0278 

0706 

7225 

0611 


UK 

(E) 

51.18 

9.734 

8222 

2A85 

1226 

2388 

X791 

10.78 

2562 

2062 

1120 

X1 13 

1 

2262 

1/482 

15X3 

1291 


Canada 

(CS) 

2422 

4.721 

4,133 

1206 

0488 

1158 

1254 

6228 

1242 

99.42 

5277 

1.025 

0485 

1 

0724 

7425 

0826 


US 

ffi 

3420 

8224 

0712 

1288 

0688 

1601 

1271 

7225 

171.7 

137.4 

7.708 

M16 

0870 

1282 

1 

10X7 

0865 

„ w. 

Japan 

M 

33X9 

8X50 

5529 

1621 

6283 

15577 

1821 

7022 

1871 

1337 

7X02 

1X78 

6223 

13.46 

0.733 

1000. 

0421 


Ecu 


3X64 

7240 

6201 

1.925 

0795 

1850 

X182 

8260 

1982 

1582 

8200 

1237 

0775 

1297 

1.156 

11X7 

1 


MayB 

Ecu can. 
rates 

Rata 

against Ecu 

Change 
on day 

N +7- from 
can. rate 

% spread 
v weakest 

fratond 

0208828 

0.795120 

-0001518 

-1.67 

4.67 

Nottwriande 

X1B672 

XI 6807 

+000122 

-1.30 

4.48 

Balkan 

402123 

307519 

*0.0283 

-1.14 

421 

Germany 

1.94964 

123106 

+020179 

-025 

4.11 

Franca 

623883 

XB1O40 

♦0.00368 

122 

128 

Denmark 

7.43879 

7.55538 

-000087 

1.59 

120 

Spain 

1S42S0 

15X800 

-0284 

225 

016 

Portugal 

19X854 

108267 

+1.15 

X12 

OOO 

NON ERM MS4BERS 





Greece 

264213 

284287 

+0223 

7/48 

-4.05 

ItMy 

179X19 

185420 

-13.51 

X40 

-028 

UK 

0786749 

0773177 

+0.00099 

-1.73 

423 


Yen par 1JXX); MS) Kroner. French Ran. Notreg lan Kit 
■ D-MARK FUTURBS (IMM) DM 125,000 per DM 


1 QMM) Yon 123 per Yon 100 



Open 

Latest 

Change 

High 

Low 

Eat. voi 

Open H. 


Open 

1 atari 

Change 

wgh 

Low 

Esl vd 

Open InL 

akMl 

02991 

02068 

-00027 

05994 

0.6860 

48258 

118261 

Jun 

0.9748 

09714 

-0.0034 

02766 

02700 

23237 

60230 

Sap 

05985 

02070 

-00021 

n sow*; 

02955 

2/478 

5287 

Sep 

09800 

09786 

-00026 

09605 

09774 

748 

X2S4 

Dec 

- 

02985 

- 

- 

02965 

9 

211 

Deo 

■ 

■ 

- 

- 

- 

- 

- 


Ecu oanaal mmo re by ta European C un r faata n. QxrenOoa are ta deocenjng rafathe arenglh. 
P oroBtHoga ch wgo t mb for Ecu a positive change ctenolae a week currency. Divergence 8hom» the 
rtalo booiew i two greed* the peroera re * ta f terar ce Poteoan aw e ntr al motel and Ear cored rawo 
for a currency, and ta mnkiun penwti a d pw c wttog e dirvtartan or Die orrancy^ market nao tan la 

H7/k9q Staring MU IWten Lk> aepandsd tan SOI. A^uamant ctec i tete d t>r the Ftandd Ttaeo. 

■ PKKADELPMA SC C/8 OPTIONS £31360 (cants per pound) 


■ SWISS ntANCFVniRCB VMM) SFr 125300 per SR 


1 FUTURES QMM) £62500 per C 


Jun 

07064 

07023 

-02038 

07084 

07016 

11275 

39248 

An 

1.4984 

1/4914 

-0.0060 

1.4964 

1.4096 

9,435 

47,885 

Sep 

07064 

07048 

-0.0031 

07085 

07035 

103 

778 

Sep 

1/4964 

1/4890 

-00062 

1/4964 

1/4880 

110 

1.180 

Dec 

07060 

0.7075 

-02039 

07085 

07075 

4 

339 

Doc 

1.4900 

1A900 

-00050 

1.4930 

12900 

9 

37 


EWORLD INTEREST RATES 


MONEY RATES 

May 0 Over 

n&it 


Belgium 
week ago 
Franco 
week ago 
Germany 


week ago 
Italy 

week ago 


One Three 
month watte 

5 Hi 6M 

5Tb 544 

5Tb 594 

5* 6(| 

532 530 

5.32 638 

sa a 

sc a 

8 73 

e a 

5.15 5.11 

5.15 539 

44 4 

44 4 

41 444 

41 454 

2tt 2K 

254 214 


One lamb. 
year mter. 

5fi 730 
53 7.40 

5% 5.70 

S3 6.70 
5.07 6.50 

538 630 

84 

61 

8 

8* 

5.10 

537 

44 8,625 

44 6325 

Stt 

5T4 

23 

2i 


■ IMt 

m MONTH EUROMARK FUTURES JUFFQ* DM1 m prints of 100% 



Open 

Sett price 

Change 


Law 

EsL voi 

Open teL 

Jun 

95.05 

95.04 

-0.01 

9527 

9520 

42848 

199045 

Sep 

0624 

0X23 

-002 

9X27 

9X17 

64360 

170122 

Dec 

95.15 

95.14 

-ooi 

95.18 

9526 

48480 

177787 

Mar 

95,03 

95.04 

- 

95.07 

9426 

36011 

190460 


Strtea 

Price 

May 

CALLS 

Jun 

Jul 

May 

. PUTS 

Jun 

Jri 

1/425 

6.60 

088 

621 

- 

008 

042 

1/460 

4X1 

4.46 

422 

- 

0X5 

090 

1/475 

1.06 

229 

3X5 

017 

0.98 

1.71 

1200 

044 

120 

X02 

1.15 

XII 

X85 

1225 

002 

024 

1.15 

XI? 

370 

4.46 

1250 

- 

017 

059 

5.61 

521 

X30 

Prontas tar's VOL CfiSe 17,791 Pun 23.QW. ftre da/» open tel. Cate 132 Puts *12274 

1 UK IMT 

rFRPfTT 

' RATFSv 

* J 




LONDON MONEY RATES 





Msy6 


Owen- 7 days 

One 

Three 

Six 

Ora 



right nonce 

ITKXTttl 

months 

months 

year 


l |JFFg LI 000m points of 10096 



Open 

Sett price 

Change 

High 

Lew 

Eat vri 

Open InL 

Jun 

92X7 

92X1 

+027 

02X2 

9X26 

7127 

45807 

Sap 

9X40 

8X44 

+007 

9X45 

82X8 

5227 

29359 

Dec 

i 

9X31 

+007 

92X3 

go or 

2603 

34399 

Mar 

9X07 

82.13 

+010 

9X13 

9X03 

1625 

11977 


i (UFFQ SFflm paija of 100X 


wetft ago 36 44 4 4 44 6325 150 

US 33 41 444 5 SK - 330 

week ago 33 4* 4* 4% 5T4 - 3.00 

ilapan 2H 2tt 2M 2H 23 - 1-75 

weekapo 2Tb 2)4 214 2H 2H -’ 176 

■ $ LIBOR FT London 

Interbank Firing 4* 4* 43 54 

week ago -414*4351-- 

US DoSar CDs - 435 440 435 6.46 

week ago - 435 4.10 431 5,10 

SOR Linked Da 3% 4 44 41 

week ago - 3ft 33t 3# 4 

ECU Linked Di mid mre i mBn 0 : 3 rehs &£ 6 mths S4fc 1 yren 53. S UBOR htefa 
rone ora attarad non tor tlOm quoted W the rnnkM by hw rateranc o bMha 81 Item eac 
d«. Tlta banka m Bankere Trust. Bank of Tokyo, Btadwaond NnUonal Wtea Weter. 

Md non are rfiown tar the domerin Monty Rriot, U8 $ Ctte and SOR Untal Ctepota | 

EURO CURRENCY INTEREST RATES 

Mays Short 7 days Ore Three Sfat 


“ 


Open 

Seri price 

Change 


Low 

Esl voi 

Open ire. 


Jun 

9X16 

9X16 

+021 

9X17 

9X12 

4849 

23103 


Sep 

9X15 

96.16 

- 

9X17 

9X12 

1471 

10813 


Dec 

9X05 

9X04 

-022 

9626 

9623 

445 

5009 


Mar 

95.64 

9X8S 

- 

95X6 

QSta 

125 

892 


Open Sea price 
9446 94.44 

9456 9454 

6446 9445 

9434 9423 

i Mad on APT 


tea (La-i-tj Ecultn | 
Change Hgh 
-031 94.48 

-032 9436 

9448 
-032 9425 


Inwbsnk Storing 3* - 4^ 5 1 * - 5 5,1 - bit B\ - 5ia - 5^ 53 - 5fJ 

Staring CDs - - 5% - 5it Si - 5^ 5^ - 5A 5% - 5H 

Treacuy Bis 4)1-41 

Bank Ms 4li - 5^ - 5,‘« 

Locd taAhorty dope. Ajj - 4ft - 4JJ 5^-5 5,1-5,'. 5% - 5M 5A - 5A 

Discount Market Daps SH-S !£■!/, 

UK cieamg bank bare landtag rate St* par cant from February 8, T9B4 

Up 10 1 1-3 3-6 6-9 9-12 

month mordh mortals mortals mortals 

Certs ri Tax dep. (£100300) 1*2 4 3J* 3*z 

Carts ofTsc dap. undar £104000 Ml * 2 pc. DepokB whhdrere lor cash \po. 

Ava. tartar rrae at dtacouit laeSOpa BCQP tad rate Sap. Broort Hnonce. kta fc o iq, tey Aprs 29, 
1994 A^aed rrao tar period May 23, 1694 to Jim ZS. 1964 Sciwinas NAD (LSQpc. Reference rate tar 
panod Apr 1. 19ft* Is Apr 39. 1904. Schemes IV A V 6296po. Rnance Houta Bare Ras S*ipc tan 
May 1.19ft* 

■ THREE MOffTTi filBSJHQ FUTURB5 (LBTE) SSOO.OOO potato ot 100% 


Low Esl vtd Open taL 

9441 1095 11566 

94.52 819 11997 

9442 587 7082 

9417 552 2521 


Open 

Sett price 

Chvige 

«gh 

Lew 

Est wo* 

Open ire. 

JM.57 

94 SB 

. 

9422 

94X7 

10561 

79874 

94X9 

94X9 

-OOI 

94X1 

94X5 

11805 

86962 

03.77 

9X76 

-002 

9X79 

9X70 

14316 

126114. 

9118 

93.19 

-003 

9X24 

9X15 

4541 

49707 


Traded an APT. AS Open Merest kgs. are for prevksn day. 

■ SHORT STCRUIQ OPTIONS (LJFFE) £600300 pdtatt td 100% 


Belgian Franc 
Danish Krone 
D-Mak 
Dutch Guflder 
Ranch Franc 
Portuguese Esc. 
Spantah Paula 
Starting 
Swiss Franc 
Can. DoBar 
USDolar 
rtafion Lire 
Yen 

Asian SSlng 
Short km rates* 


tf4-55» 
5*9-512 
SA-5d 
5jJ ■ SB 
12>2 - 12 j 4 
73-7% 
8*9-4% 
3^-3V 
5%-S*B 
4-3% 
9-712 
2.1 - 2^4 
3*2-212 
■o cal for die 


nodes morffl mqntha months 

Sl-U Sfj-5% 54-5,', 

6*4 -Bit 6^-5B 8,V-Sa 

5A-5A 5A-5A 6A-43 

5,’s - 5A S\ ■ V* 5A - 5 i 6& - S,* t 

ea-5H s*-53| 6M-&I 5%-Bla 
12% - 11% 11% - 11% 12% - 11% 11% - 11 
7|i-7% -7% 8/. -7% 8j.-7a 

54 -5,5, 5£ - 54 54 - 54 5% - 5A 

4-3% 38-311 4-3% 4-3% 

5K-6U 5li-5il -6ft 6% -6% 
4ft -33 4%- 4% 4ft -4ft 5, 1 , -4ft 

8-7% 8-7^ 8-7% 8-7% 

2ft - 2% 2ft - 2% 2ft - 2% Sft - 2% 
3% - 2*2 3% -2% 4-3 4-3 

IB Do ter aid Yen omen: mo days’ nodes. 


One 

5%-S% 

5%-sa 
5A-4S 
5ft -5ft 
5% - 5*2 
10 % - 10 % 
8%-78 
6- 5% 
4-8% 
7% -7% 
5ft - 5ft 
6*9-7% 

2% -2ft 
4% -3% 


■ IM 

BE MONTH EURODOLLAR (MM) Sim prints of 100% 




□pen 

1 llMl 

Ctange 

m i 

Low 

EaL voi 

Open tet 

Jun 

9X15 

9521 

•2.13 

85.15 

04 nn 

09,717 

424.135 

Sep 

94X4 

94X6 

-017 

9424 

94.36 

8X814 

410,723 

Dec 

9426 

8X88 

-019 

94.05 

3X88 

77X78 

346272 


Softs 

Price 

Jun 

- CALLS - 
Sep 

Dec 

Jun 

- PUTS - 
Sep 

Deo 

9450 

014 

0.15 

009 

025 

038 

083 

9475 

023 

0,07 

026 

019 

023 

1.05 

9500 

001 

003 

023 

042 

0.74 

1X7 


EsL «d. total. CA 3S8B Puts 1966 FriwKxa day's open irt. Crib 1BBM3 Putt 158319 


■ US TREASURY BU FUTURES (IMMj $1m pv 100% 


Jut 

95X5 

95/47 

-010 

95X6 

9X46 

1213 

25.433 

Sep 

8521 

94X0 

-012 

95X1 

94X7 

655 

10W 

Dee 

94X2 

94/47 

-015 

94X2 

94.47 

688 

6205 


Ogs. are tor preMous day 
K OPTIONS (L1FFQ DM Im points oi 100% 


BASE LENDING RATES 


E THHCE MONTH POBQB FUTUMa (MATf) Parts Waftank offered re» 
Open Sen price Change Hfcjh Low E8L «Ql 
At* 9430 94.47 -031 0451 9445 17.475 

Sop 94.73 94.72 331 94.78 0469 15,720 

Dec 04.70 04.68 - 0.02 94.71 0432 5,453 

Mar 9455 9452 -033 9438 94,49 6.127 


Open taL 
80815 
45,444 
37,273 
33,138 


SWto 

Pries 

Jun 

— CALLS - 
Sep 

□ac 

Jut 

— PUTS - 
Sep 

Dec 

9600 

012 

030 

032 

028 

027 

018 

9605 

023 

015 

0.19 

024 

017 

n ta 

9560 

021 

007 

010 

047 

0X4 

046 

Em. ml total, Cta wai6 tore btos. Prevteux reye earn n. Cato 229BM Piai 1687* 

■ BHIO WBl FRANC ORTIOHS (UFE) SFr Im prints of 100% 


Strike 


- CALLS - 



— PUTS - 


Price 

Jut 

Sep 

Dec 

Jun 

Sep 

Dac 

9600 

018 

026 

0 27 

nna 

010 

net 

8628 

004 

012 

015 

013 

0X1 

0X8 

9650 

021 

005 

0X7 

nta 

nan 

0X3 


n TWE3* MONTH EUHOPOUJIN (UFET Sim points PC 100» 


, CNa 0 Puts a (tateB dajrs OMn bu Cato 1US «E4 



Open 

Sett price 

Change 

wgn 

Low 

Est vri 

Open InL 

Jun 

96.14 

85.03 

-012 

9X14 

9X13 

215 

5168 

Sep 

84X3 

84X5. 

-017 

94.53 

94X2 . 

175 

2105 

Dec 

94.04 

8X85 

-020 

94.04 

84,03 

120 

1422 

Mar 


8X61 

-0X2 



0 

966 


Adam & Company — 525 

A69d Trust Bank _525 

AfflSark 525 

•HertyArsbader ..„ 525 

BankofBaoda 525 

Banes BBteolfeeaya- 525 

BsnkotCyproa 525 

Barit of fcatand 526 

Bankaftadta 525 

Barictd&cadwri .525 

Barclays Bank .... 525 

Blk Bkal MU East 525 

aaowi Sh^lgy 5 CD IN 325 
CLBankNadaHand ... 525 

CSbankN4..„ 326 

OydaadaiB Baik 52S 

The C&oparahe Barit. 525 

Ctxjns5Co.„ 526 

CrocE Lyonais 525 

Qipns Rapriar Barit -625 


% 

Duncan Larete — 625 

ExetsrBsnkLimdsdm. 625 
Fnandrii Gen Bank- 6 
•Robert Hemtaga Co _ 525 

Gbobonk.- - 525 

•GuaYteW Mahon ...... 52S 

Hafcto Baik AG Zirsh . 526 

Ha i fa a s Bank ....525 

Hwlbbfe & Gan tav Bl 525 

•t-BSamwi.. -625 

CHoareSCo 525 

Hon^ong&Shan^aL 525 
^fian Hodge Bank .... 626 
•LocpdU Joseph A Sons S2S 

Ltayds Baik — — 626 

Ueghraj Bars, LU . . — 525 

KtoSandBank 526 

* Mtu4Baikng 6 

NaMVetarntastor 526 

■RBBBKtaiera 625 


• Rntughe Guandee 
Corpotteian bmrted b no 
longer tetanlred as 

a beridng inslUkn. 8 
FtoyriBkofScoUand- 525 
•Gntfi & WSman Sax . G25 

Standand Chartered 

TSB 525 

•Unfed Bt of Kurort _ 525 
IWyTrwSt B»* Pic _ 525 

WeetBm Trust ... 525 

WhSsauay LakSan 525 

YcrkErtraBat*. .626 

• Membore ol British 
Merchant Banking & 
Securities Houses 


Barclays Setact 
rosoi no. won* reive 


00 Bar (30. Mntareo IV Cmrery 0800400100 

czxoo-tkste 4xo 100 400 warn 

no^X»-€24ae9 4.75 USX *.75 readr 

Kspoo-taaxse uo xn soo reai» 

£SOjOOO-a9XBa MS U< US YurY 

n 00.000- — _ 5X0 4.11 550 Vary 


pd are Atitetott 07 U ram* 

r, »ii,ii nn i~nnr its c.ai 179 rewtv 

110.000. — — *50 u: 490 Y44BV 

CSAD* SOO ITS 5.00 Yearly 

csaooat ssa 413 see 'ray 

TESSA - « Yrety 

Hatto—MB BMg Soc - to nb i e taliw e ala r 

nantRy-treOBiLSmaw oroowvw 

t2X00-C4.e» 3J0 £49 35* OB 

csjooo-nxse jao :e us a 

riOLOOO-C*.9M .... 4 30 1X3 *57 Hr 

CJVJOO-E49.B09 450 UO *H Ot 

(S0L000- UO 150 341 QB 


Barclay* Prims Acconnt HXCX 
pd Bo 1 ZS. Honoaopton 


nmo-CLJH 

czjoo-isxn 

nicw-c*i(8 _ 
cz&ooa.. — 


150 ZJOS OB 

1 09 £37 OB 

106 2.TB Hr 

251 US OB 


me Shipley & Ca 

■dreCBututebiiy. 

IDnaotU I 


6 CP Ltd 

Stay, Loroen ECZ on-cn 

1450 3X0 I 407 

I 4X0 3X0 I 4X7 I 


Catadontaa Bank Pic 

9 S Aadraw Sure Edwugn eiz 2n* tm sdaazx 


Cater Men lid 

30 BfeOAi Lta. LbbODB 9C3V 90J 071-0212070 

MCA—.. .1 3JS 2X1 I 3X1 H6 

FtadEBOXOO* 475 -I 4X5 in 

Prenbiysesoxoo* 1 6.12 -I SJ*I Ife 

C ka rtetko uM Bank UaBwl 
i PetorasMr ta* BOM 7DH. on-2w*ooo 

CZ500-C10X99 M ill IX III 

530X00^*8X08 4X0 300 4X7 IBh 

mux® 139X00 4X5 119 4X3 IBh 

n 00 IDO. 450 138 450 MSI 

SM00-54BXBB-. 150 1.13 IS! IBh 

540X00-460X00 __ 2X0 150 2X2 MBl 

SI 00X00-51 90X09 2X5 1X8 £27 MB 

uotunw £50 1X9 £53 MDt 

tef rite QtaciM Hi eo9M - Mr Ita fferes 
mreasnn 


MntnllB.BanniuAttUee’ 0800082603 

(30X00. 530 413 550 Yearly 

C3OX0D-C41999 500 175 500 Yrety 

rauno-coxn sex ub 450 vrety 

C1OX0D-CISX99 150 £83 350 Yrety 

££500-0,990 £50 1X» £50 Yrety 

Roa Brothore Grafted. Bankare 
AMenrai-o HA. Uta* EX3I 3XB 071-9291150 

htaam r, 1 Ore mnre I * 75 350 | 4X5 1 MSI 

PMMOBTOr Ota Atari I 4 50 Ut 459 MBl 

BUM* MtttAUBtetAt- I 4£S 119 I *32 1 OB 

Royal Bask atScaflant pfc Ptemtan Acc 

42SlAnfcreSo.EdHutfiBC7YE. 031-JH93B2 

CLOXOOf 175 2X1 3X0 OB 

£29X00 - £49X90 150 £63 3X5 OB 

C1OXO0- £24X39 — £75 200 £.78 Hr 

£5X00-04X09 2X0 1X0 2X2 OB 

£2X00-14X91 rxo 1.13 151 Or 

Saw & Prasper/Robal Gening 

in — TfuMiinn iknniniinMi im oooqsbzidi 

(tan Attain I 375 zxr I 3X2 1 Date 

TESSA nod 1 Yre I 441 - 450 MBl 

TOSAUanaxa 1*41 -I *50 1 ta 


Oydaadrie Bank FtaxMa SotaHoii Acc 
3051 tare Pleca. Ctorew 01 2W. 0*1-2f 

najWM29X«9- [170 279 | 175 

aaxco-essxoo— - 175 zxr sxo 

eiOOXOO-CI99X99_l 3X0 2X5 I 1X5 1 


Tbs Go-opsreBw Bank 

PO Bar 300. arimretaM. tores 0345 262000 

treSA-— J SXS - I -I Yrety 

At Brinare ***** 'iVao ' ifae I soil t*9i 

ttarereoa-OUteyfeMBtata 

£30X00+ 125 191 6X2 fl-W 

E2SXOO-£49X9I *50 139 *56 6-141 

noxoo-eMxoe — *xo sxo *x* s-ami 

£8X00-9 9X99 . 3X0 £26 Ixsla-Ml 

as^-rrffir 2X1 | 179(x-ta 

C1OX0O-C49X6S 325 £44 129 O-ta 

B3X00-C9X9S £25 1X0 I ££slft-ta 


E2SOXOO. 

CWCOO-CMBXffi 

n0.00O-T40X99- 


=L=TT5S" s 

9X99 3X6 £ 

X99— £7S a 
1 £3 1. 


3X0 455 

£30 3X9 

£09 £77 

1X9 £26 


aS-H Pita™ Vfc>*t> SL Brtetd 0272744720 

iferntim irerti see sno 157 s u 

Pea real m ct 0000 . sj-so 2 x 1 a isoa cu 

MMACSOOOO. — 3X75 209 3X32 QB 

MM £100000+ 4X00 1000 4X90 OB 

Tyred TT55A 4X75 - 4447 OB 

ULC Trust Lkafetf 

I GrMCwmnMPLtonoanWlH7M. 071-258009* 
El 0X00-90 raynaOce. £75 SOB I Biu|3-ta 
noxao-iH rearia. 750 5X3 7 64 o-m 
I25X00-I Via 7J6 544 I -I YeBfy 

Dnrtad Dogtofere Trust Lid 

rOFKn 92. Here. DM (HTY 091-4472*39 

CtateCMMIOM 

CIX00+ 1 475 35A I 4X4 1 Or 

J. Horny Sdmdor Wmb ft Co Ltd 

120 QtaaMe. Landsn EG2va>3 071-3820000 

SprealAcc._ [ 4£5 119 [ Oil ta 

£10X00 end SBta 1*50 US I *57 I ta 

Wfetara Trot Ugh iaterest Cheque Acc 
The Monejcentre. Pijntan Plr 1SE 075222*141 

nSXW+_ 1 4J5 166 I 4X4 1 QB 

C5XC0-C1 4.999 450 136 456 On 

EI.OCO-C4X99 1 4J5 319 I 4321 Ur 


B UM elsaMo Mr ttaaCOea at 
i CAIB Grots rite vteriteri M 
kg tf kteM prii oner are 
*na Rre-. art cr Pnorincy 


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""" ascnp'o :js_» (cncocntyj st Ch.crt trelyvi ltd 

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CURRENCY MANACEMEKT 
C0IUH3BAT1ON PLC 
WinrieMerHcme 
TMxDdooWaD 
London EQM 2ND 
TetCUl-JazWAS 
Rw 01-3829487 


•FOREX •METALS -BONDS -SOFTS 

Objective analysis for professional investors 

0962 879764 

Fiernes Hotso, 32 SoL-thfiatc Street. Wlneheste: 

Halts S023 9EH Fix 0424 T7-M67 



BTVAIVCIAL TIMES WEEKEND MAY 7/MAY8 1994 


14 


LONDON STOCK EXCHANGES Dealings 


Detafa of buahees dona shown hatow have been Wwiwtth wont 
tom fast Thursday's Stock Bochanfi* OfflcM Utt and should not bo 

reproduced without pefmbwtan. . . ... 

Detals relate to those securities not inducted In the FT Share I, filiation 

S * r Un£ss otftarwtefl Indented prices are In psnce. The a* 

which the business was dona in the 24 hours up to 5 pm on Ttmtiay and 
settled through the Stock Exchange TaDaman systBm. mey arB not w o rder a 
execution but In ascending order whldi denotes the day's highest and lowest 

d88 p?'tho«» securities In which no buslnees was recorded In Thwada/a 
fM Brtoi usr the latest recorded business m the three previous days Is given 
with the relevant date. t ^ ^ , 

p. i«> sasp) qtwcfca are not repufated by the International Stock Exchange 

erf the United Kingdom and the Rapt*«c ot Ireland Ltd. 

t Bargains at special prices. $ Bargains done the previous day. 


British Funds, etc 


Ttotsuy lAN Stk 2000(03 ■ £128% 
ExEMquar 10%% Sft 2005 • £1I7& (4My94) 

Corporation and County 
Stocks 

tftnlip*mC*»p2%HSft1B»(gr*Ata1- " 
£37 (3MyB4) 

BfelWnsMm Ccfp alaH sac I946tar ritn) . 
E»t4MyB4) 

Bkicfnuhsm I Storks Gounoi 11%% fted 9fc 
2012- £120>] CJMy84) 

LMdriCHy <4 Ftad sac 200S - £130 
OWyW) 

Lincoln Cop 3% Hod a* 19l%« nflw) - 

MMtaJtat^ot) 11.5% Had 3* 2007 - 
£118PM»«J ^ 

OUm Coni 4% Dab Stk - £50* 

So/lbto pay off 7% Ln stk ansffto tot 
Ctataff/P) - £23% (3M*fl4) 
SunoertanaiBorougti oQ »%% Rod Sttc 2008 
-E117 

UK Public Boarcte 

OycJeport Id 4<K bid SOc - £41 (4My84) 

Foreign Stocks, Bonds, eto- 
(coupons payable tn London) 

WOW NaUunta swung Crew PLClQVjT - " 
SUxxtl QCd Bda 2002 (Br £ Vs) - £107% 

pMySfl 

AbOay NaOonal SttrUg CstfW PLCT 1 %» 
Subard GM Beta 2017 - £118*1 
Abbey National Tteaxay Stew PLG 5%% 

GM Nta 1993 IBr SVnfl - SB&45 MMyMJ 
Wb«y IWtonal hsaenny Sane PLC Sti96 
GM Nta 1000 (Brtcm 000.10000) - 
BC97JS5 97%(3My94) 

Abbey Nauona) Treasury 8 eras PLG 7\% 
GtdWs 1988 (Br £ Vor) - CBS f4MyW) 
Abboy NSdonal Treewy Swva PLG 8% GM 
Bdt 2003 (Br £ Vta) - £84* fttlyM) 

Acar incorporated 4% Bds 2001[attl0000) - 

Group PLC B%* Beta axJoterWW) - 

£06% 

Aada Rnunes Ld 10%% Cnv Cap 
Bds20DS(Br £SOOO&KXXnd) - £108 
(3My94) 

BAT Cm#& Corporation BJi% GM Btta 2003 
(Br S VW1 ■ 889-7 (3MyM) 

BOC Group PLG AN Belli 2OO40£ Ww) - 
CS4%(4M)«9 

BP Amato Inc 9%% GM Nta 1888 (Br £ 
VSrJ-EIM* paAp84) 

Bwdeys Bank PLC 6354 Nta 2004(BriSVM- 
ous) - E85% 6*2 PMyftq 
Bodays Bo* PLG 8% Pm to String 
CapUBdriBiCVsl-eSlttPSAp^q 
Barclays Bonk PLG&875% Undated Steroid 
Nta -238% % 

Barclays Bade R_C 10%% Son Sub Bds 
1997f - ?10W»10t»C» - £106% % 

BMv PIG 9 %% Pup Subord Nta (BrWtet- 
oua) - £88% (3Aly94) 

Blui CM* Industrial Csdtai Ld 10%H Cnv 
Cre Bdl 2005<a£SOaOAlOOOOq - £106% 
7% 

Bradford 81 _ 

£99 


i PLC 10%% Bda 2014 

(8«iooooaioaaoa) - eitsA psApBi) 

Brttah Qss ton Fhanc* BV 9%M GM Bds 
2001(Br 5C Va) - SCI 02 102% 

UWi GM PLC 12\% Bds 1996 
(SrCiooo&ioaoq - cio*% 

Brttsh Ore PLC 7%% MS 1997 (Br £ VW) - 
£98% 

BiUah Gas PLC 7%W Bds 2000 pr EVmJ - 
C96%<4My94} __ 

Baas8 Gm PLC 10%H Bda 200l(Br 
£1Q&MOOQO&1 00000) - £108% 
artWr'Gm PLC 8%* Bda 2003 (BrCVarJ - 
£95% 0 

British G«» PLC 8%% Bds 2006 (Brevet) - 
£1(M%(4MyM) 

British L*nd Co PLC 8.975M BiU 2023 (Br £ 
Vm) * C92(28Ap94) 

British Tfltocftm Rnonca 8V 8%* QM Bds 
1999 (BrSSOOOSSOOOq - SI 00% lO&GS 
paAplM) 

British T s Iacb i mii sil ca toiB nc Zso Cpn 
Bds SOOOffliCTaHMIOOOa) - 082% 

(28AU#fl 

Brush Teacbramunicallaiu PIC 12%M Bds 
2008 - £129% h U 6% 

Bumwh CasM CapnaWwaay) Ld 9%W Cnv 
ere as* aw (aw eioooj - eisiJi 
Cabia & VMsn M Fkwnc* BV I0%K GM 
Bda 2002 (Br £100008100000) - £107% 
(3My94) 

Dapte FUanca N.V. 7%N QM Bda 2003 (Br C 

va/t-eanjK 

Dow OmWcai Co Zara Cpn Nls 3WS/ 

Q7(BiC1 000810000) - £78% 

E» Enssrpriaa Rrwnco PLC 8%K QM Bcch 
Bds 2008 pag GBOOOI - £103 
Bf BMpris* Hnanc* PLC 8%N QM Bich 
Bds 2000(6^90008100000) - £100 % 
(3My94) 

FW Eartsm Tasafts Ld 4t« Bds 
200«®rS10000) ■ 8118 118% (2BA0M) 
FW and p aputeo d) io%* Bda. 

2008ȣ1 000810000) . Cl 07% (4My94) 

: at) 10%? — 


FM snd ft apuMoi 

£107% 


«H Bda 1908 - 


MUririd Bar* PLC SUxrtR^g RMeNa 
2001(Br£EOOOUOOOq - £87% (29Af)8« 
National oKdOoWC7%% Bda 1896 pr E 
VW)-£97%8% 

Naaonsi Power PLC ia%H Bda 2001 (Br 
C10000810000Q - £109% % (tawM) 
Nadonal WaaMnatsr Bank PLC 11\N 
Subrad Not 2001 pr War) - £113% 
Nadonal Waawiinsfr llartK PLC 11 % W Und- 
SubNts £IOOO(Cnv to PrflBsg - £106%# 
Nsdonsl Waundnstsr Bonk PLC 11%K llnd- 
SufaNIa ElOOOpnv id PrQBr- £109 
pM)>94) 

Nadowrida BuUng SocWy 13JS% ! 

Nu 2000 ter 61000Q - £11BH 


lattanwua Buldbig Sodaty Zara Cpn Nta 

189B(Bt£VW)-£70%fMyS4) 

Ntoorr Tateffnpb and T+phom Crape* 
Nta 1998 (Br 8 VM] - *87% 882 (3My94) 
Northumbrian Watw Qoup PIC S%N Bds 


2002 (BreVta)- £100%* 

Norway (tOngdcm oQ 7%K Nta 1998 (Br SC 
Vmd - K»7% P*4y<M) 

paclflc Boctric Wlreaceblo Co Ld 3%K Bds 
2001 (BrSl 0000} -SI 21 
Pearson PIC 10%9S Bda 


2008(Br£1 000810000) - £108% 
PLC 10%' 


.H GM 


Rshar (Mbar* Flnonco N.V. S%H 
QMRedCrwPlt 2004(BrC1000) - £127% 8 
(3My9U 

QuoMtaed Export Ftwc* Com PLC B%N 
Gtd'Bds 2009 (Br £ Var) - £MM%4 
Quarantood Export Rnscs Crap PLC 10%K 
GMWda 5001 (BriVta) - EioaU 
Gukmoss PLC 7%W Ms IW7(BrCV»l- 

HsBlax Buddsio Society 9%H Bda 2004 
(BrCI 000.10000,100000 - EB*»i 
hMKn BuSdkig BocMy 7%H Nta 1999 (Br C 
Var) - tm (Z9WW) 

Hsltax BiMtnv Sodeiy 10%U Nta 
1997f9rih 009810000) - Cl 08.72 (4My94) 
Hanson PLC 9%tt Cm Subam 2008 (Br 
CVW)-C113% 5 

Hsnson Tnu PLC im Bds 2000 (BiCBOOCI 
■ £103% 

Hs rrisoni & CimMd PIC 7%M Suub Cm 
Bds 200aoBfC10a081000Q - £104% 
(39A094) 

bnpatUd ChanUcd Mustriaa PLC 8%Ki Bds 
5O0S(BrttaK»10aM| . C10**2 
bnpsrisl Chandad Munrtes PIC 10H Bds 
200303rd OOOBI0OOQ) - £107% (3My94) 
Iritamabcnal Bank far Rsc 8 Dsv 9%N Bds 
£007 (BriSOOO) - £104% 

MMRefMbae o? 10%% Sda 2014 
(atlOOQO&SOOOO) - C113 (3My94) 

Jspon OavotopmeM Bank a%% CM Bda 
1999 (Br 8 VW) • S989S CZ9AP94) 

Japan Fki Com tor Urtdpd Ertp. 0%% GM 
Bds M04(Br£1000 8 10000) - C30% 
l«My94) 

Hansel Electric Power Co Mo 7%<N Nta 1998 
(BrCVw) -C9T 

Ladbrafce Grow Hnanoe(Jansy)Ld 9% Cm 
Cap Bda 5005 (BrCflOO&lOOOOO) . £99% 
Land Socuum PLC »%* Bds 
saor(B«ioao8iooooi - ciao% i 
Land SecuUes PLC 9%% Cm Bds 2004 
BrtBOWaSOOOQ) - Cl 12% 

Lasmo PLC 7%% Cm Bds 
2005(Bre 1 00081 0009 - £99% % (4UyM 
Leads Permwwnt Butaig SecMy 7%M Nta 
1B9r(BrEV«1 - CaiHV 2 
Loads Pomnsert BiMho SocMy Cetood 
F8Q RM Nts 2003 (Br E VW| ■ £98.73 96% 

0MV94) 

Lea* tWrt) PLC 10%H Bda 
zoooBrciooo&ioaoa) ■ C109% 
learis (John) PLC 10%% Bds 2014 
«Brt10Q0081 00000) ■ £110% 

Lloyds Bank PLC 7%% Subard Bds 
raMfflrWirtxa) - £B7% % % 8% ft 
Lloyds Bare PLC 10%% SuDotd Bds 
1996(Bi£10000) - £l06d (3My94) 

London Boetrtcay PLC 9% Bds 2003 (Br £ 
Vad- £94% % 

Lnstu FManca PLC 8% GM Cm Bda 
2004(Br£VtaS) ■ CBB (S9ApB4) 

MffC PLC 10%% Bds 
t003(BrCl 000410000) - £104 (E8ApQ4) 
Mams 8 soancar FManca PLC 7%% GM Nta 
1998 (Br 8 VaiJ - £98% % (3My94) 


AKad-Lyenal 

mm 


ASM-Lyona PLC 7%% Una Ln Qdt 93/08 - 

£99% 100 pMy94) 


FT-SE ACTUARIES INDICES 

The FT-SE 100. FT-SE Mid 250 and FT-SE Actuaries 350 Indices and the 
FT-SE Actuaries Industry Baskets are caloidad by The Internatio na l 
Stock Exchange of the United Kingdom and Hepubfie of Ireland Untied. 
O The international Stock Exchange of (he United Kingdom and Repubflc 
of inland Limited 1994. AM rights reserved. 

The FT-SE Actuaries All-Share Index la calculated by The Fkiandal 
Times limited In conj u nction with the Institute of Actuaries and the 
Faculty of Actuaries. O The Ftancfel Times Untied 1994. AD rights 
reserved. 

The FT-SE 100, FT-SE Md 250 and FT-SE Actuaries 350 indices, the 
FT-Se Actuaries Industry Baskets and the FT-SE Actuaries Ad-Share 
Wex are members of the FT-SE Actuaries Share Indices series which 
are cal culated in accordance with a standard set of ground nies 
®*™wl*had by The Financial Times Untied and London Stock Exchange 

WnjuKfeai with the Institute of Actuates and the Faculty of Actuaries, 
t ^ "Footsie' are joint trade matte wid sendee maria of the 

J^eon Slock Exchange and The Financial Ylmag UntiweL 


AUtaHypn* FtaneU Santa* PLC8%H 
QWCnvSubertBds2008 ftagMtatKIOQO - 
eioW » 

MM-Lyana HrancM Servian PLC8%% QM 
Cm Subard Bds2D0a»£ Vw) - £106% 
107 (4My94) 

Ahta PLC 53% Qmr Cum Ngn-Vtp Rod Prf 
£1-76 

i of Cam SDc 83.126 

Carp Shad Own 8lk *1-087* 
nr PLC 6%» Mox-Untod USW 


-Cie%(4My94) 

CunCmMM 



.1024%) .1 
I Ld N On) 

MOa fflabda PLC 8p(N*fl 
lOp - 1*0 (20Ap8fl 
mour Truri HXt 10%% I 

Mt englnoatfcig I 
- 45 (3MyB4) 
ADR (5.1) -89% 


Una Ln Sft BUBS - 


Paanon StaAig FManca PLC ' 
Bd>20aZ-£10aJ,f3M)r94) 

PanMautar 8 Qrianbri 8»am N» Qo *%% 

Ow Bds BXBQrfnaOO&IOOOCO - £134% % 
(4My94) 

PowarQan PLC B%% Bda 2003 Or 

£100008100009 - ess%* %4 

PrudanM FMmoa BV 9%W GM Bda 2007 
03^30008100009 - C101H 3 
fVudanUal Rinding Carp 10% Nta 1998 (Br 
SCI 00081 0009 - £40.1723 SCI 03 (3MyM 
Rare OrpanfsadCM PIC B%% Bds 3000 fir i 
ire) -£98 (4MyM 

Hobart HanViw Md FMonoe Ld 9%H Potp 
Subard GM Nta (Br e VW) - £88% (4MyS4) 
fUB-ftayc* PLC 11%% Nta 1999 f9r 
£1000810009 - £110% 

Rote noyefl capital Inc 7%M Nta 2003(Btf 
Vara) -194% QMyS4) 

ftjdacMda CiaVMureoo HntO(|Ld8% FWp 
Subort QM Nta (BrtVaiVnia) - £84%* 

Royal Bank of Scotland PLC 9%M UMtfsd 

Subard Bda (Sr £ Var) - £94% 

Royal Bank tf Soodand PLC 1(L8% Subond 
Bda 2013 ter £ VW) - £109% QSApSQ 
Royal Bank of Soodand PLC 10%% Subort 
Bda 1999 (M8000823009 - £107 (4My94) 
Royal Mauranca HWga PLC »%% Subort 
Bda 8003 (Br £ VO) - E99% % (2BApS9 
Stanabray (J JfCbanrMl MandtfLd 
a%MCn*CnjBds 200S(Br 00008100000) - 
£129%(3My9fl 

Sowmi Thrt PLC tl%% Bda 1999 
£30008100009 - £110% (3My94) 

8amm Tiant PLC 11%% Bda 2001 (Br 
£50008100009 -£112H 
Sbioara Natrigwian OarpamUan 3.76* Bda 
2003 a- *10000*100009 - 1104 
WretMne Baadtam CmHol PLC 7%% GM 
Wa 1998 (Br £ Vta) - £87% (4My94) 
SndBitena BMcharn Capital PIC 8%% GM 
Nta IBM (Br £ VH) - £89% (ZAApto 
Sodab Qanarala 7JB73% Pm p Subratf Mb 
(fr£vw)-eao%% 

ewadanOOnodam aQ 11%N Bdt 1995(Br 
ES009-£lOS%(4My9^ 

1SB Group PLC 12% SUbaMBdi 2011 (Br 
£100008100009 - KML875 
Tarmac Fkwnc* (Jeooy) Ld 9%% Cnv Cap 
Bda 2006 (Hao £1009 - £105 
Tata&Lyto kOFM PLC7TM*ai.yto PIC S%% 
T8UtFhQd8da 2001(9) W/WtaTSLPLC - 
£87% 

Taaoo PIC B%% Bda 2003(9£WnieyM) - 
£97% % 

Taaoo PLC 10%% Bds 2002 (Br CVW) - 
£108%% 

Tosco Capftaf Ld 8% Cm Cap Bds 2D06(Hao 
ei)- 0188.19% % 

Taaoo Capital Ld 0% Cnv Cap Beta 
2006(Bi£9000610009 - £116% (4MyB4) 
Thtanaa Watar PIC 9%% CmSubardBda 
2fXH(a£axKK50009 - £120 

91 Intarnadcnal BV 7%%GM Bt*i2003(Br£ 
Var) - £B1% (4My64) 

Tokyo Boctrio Rwwr Co bio 7%% Nib 1998 
(ra £ Var) - £98& 

Tokyo BacMoftww Co Me 11% Nta 2001 
(B- £1000.10000 8 100009 - £>11% % 
TMqn Gaa Co Ld 65% Nta 1998(Br*vaa4 - 
*94% (3My94j 

Toyota MMarC ur poraOo n 54126% Bda 1998 
(Br 8 VW) - *95576 987 (4My8fl 
Ttaosuy OtaporaHon Of Vktarla B%% Old 
Bds 2003 (Br£ Var) - £87% 

IPng Ho Steal Enforprts* Corp 4% Bds 
2001 (Brtl 0009 - *117 0My94) 

U-Mng Morins Transport CorporWk>n1%% 
Bda 2001 pag ri MUt 81009 - SB8 
(4My94 

IMsnr PIC 7%% Nta 1098 (JBr £ Vsr) - 

seek 

United Kingdom 7%% Bda 2002p*Vsi) - 
S98J3S 98 (2flApB4) 

United Mngdran 9%% Bds 2001(Br 
ECU100Q.10000&100009 - BC109 1093 
(IMyiH) 

WBtaup(S.QJ Group PLC 9% Fwp Subord 
Nte(HapftaAt}-eB9%% 

Wookalch BuMhg Sodaty 7% Nta IBM 0W 
EVat) - £90% (3My94) 

WooMch Btedna Satfsly 11% Nta 
1D9e(Br£1 000810009 - £107% (4MyB4) 
WboMcft Bubftv Sodaty 11%% Babartl 
Nta 2001 -till 

Yuan Foang Yu PspvMrgCo Ld 2% Corpo- 
rate Bda l900(BrS10009 - *1 17 MMyB4) 
Export Davdaptnant Ooip 8500m B%% Nta 
MWm - *94% 94% pMySfl 
Export Dawtapmart Osip 8300m 0%% Nta 
87109004 - 882% (2SAP84 
RntandfRapubac of) £500m 7% Bds 287IQT 
2000 ■ £83% (3My04) 

Sw Us nf OsadaBi oQ COOOnr 7%% Nta 37121 
97 - £984) 

SwadonOOrajdran of) £2G0m 7% Mammanta 
23712/88 - C96H 

*wadwr90nodtan aQ £990m 7%% Bds 2877/ 
2000 - £9812 

Sterfing issues by Overseas 
Borrowers 

Bank of Grave* )0%% Ln Stic 2010(Rra* - 
£103 (9My94) 

Calas* Nsttomta Dos Autoroutea IBM GM 
Ln Stk 2000 - £158.95 (3My94) 

CradK Ftndsr D* Fianc* 
10%%GMSarLn9tk2011,12.13.14p4eg) - 
E11BPMy94) 

CtwH Fonckr Da Franco 14%% GM Ln Stk 
2007(n*tf - £149% (2SAp04) 

Dramx.- Ksnodorn of) 1 3% Ln Stit 2000 - 
£132% QMy94) 

Europowi fn va wwnl Bank 9% Ln Stk 2001 
(Hod - £102% % 

Eraopoan Invaabnant Bank BHLn 81k 2001 
(Br£5000) - £103% (3My04) 

Europerai kmobnanl Bark 10%% Ln Stk 
20M(R^.£l1tB2% 

Eurapaan invaabnant Baric 11% Ln Stk 
20028teg) - £115% (3My94) 
torismdfflspiiaio of) 14%% In Stk, 2018 - 
£147%(3Uy64) 

Now Zealand 11%% Stk 2O140tog) - £12* 
Nova ScoOalProvMca of) 11%% In Stk 2019 
- £128% (3Myfl4) 

Pabdaoa MaMc a n o* 14%% Ln Sat 2008 - 
£12fi(3Myfl4) 

Listed Compan ies(exc (u ding 

Investment Trusts) 

ASH G91M FMencaW*r**y)Ld 9%% Ow 
Cop Bda 2008 (Rre Unite lOOa) - £88 7 
ASH Capnnt RnanokJenayfLd Cnv 
Cap Bda 2008 (Br SWtr) - £B0 
ASOSrtRttiar Group PLC ADR (10n) -8SJZ 
OBApS*) 

Ak won dar 6 Msxandar Sankara loo Sha at 
Osss C Com Stk *1 - £9% (SMpM) 
Naxon Group PLC 82Sp fl*0 Cm Ctsn Rod 
Prf IOp-678 

A#od London Prapenias PLC 10% Cum Of 
£1 - 114 (29Ap04) 

AMad-Lyona PLC ADR (1:1) ■ 8848 8% 
(4MyM) 

t PLC 6%% Um Ln Sflt - ES6 


jpuc4ja% 

rPrfEI. . . . 

1 PLC ADR (6.1) -89% 

.... r Pnsnca) NV 8%p GM Rsd Cm Prf 
6p- 968 46 % 

AtaMHn AffledHad Co Ld 8A 060 - 4» 
An iM oated Sac ui t ro edu d PLC S% Cm Cun 
Rad Prf £1-77 

AuMmltad SacwMMsa) PLC 8% Cm cum 
Had Prf £i -si% 2 

BAT teduabtee PLC ADR prt) - *1336* 
BET PLC ADR (4.-1) - 57585* 

BtCC PL£4-3%{FnVye%) ItaCUmPrfStk 
£1 - 92 (4MU90) 

BM Ovue PLG 4JBp (Nd) Cm Cum (tad Pit 
aop-52 

BOC QMM41 PIC ADR (111) - S1ILB1 
BOC Group PLC 12%% Una Ln Stk 201 
-£128% 7% 

BTP PLC 7.GpipiaO Cm Cum Rad Prf ICp - 
214 (29Ap04) 

BTR PIC ADR (4s1)- 82352 

Banwr Hamas Group PLC Otd lOp - 190 1 

Bardoya F4C ADR (4:1) - 830% 

Barttays Bvk PLC 16% Uhs (tap Ln Slk 
2002437 -£137% 9% 

Bwdon Qraup PLC 7JOp (Not) Cm Rad Prf 
20p - 101 (3My84) 

Ba rman Group PLC ll-2Gp Cum Red Prf 
2005 lOp - 118 7 pMy9* 

Baring ChmMta Fund Id Wta to Sub far CM 
-33%(&W4) 

Borings PI/3 8% Cum 2nd Rf £1 - 103* 
Batata PLC B%% Nan-Cum Ptf £1 - 124 

BatKC ADR (2ri) - 817% {29Ap0Q 
Bass PLC 10%% Dab Slk 2018 - £115 
Bssa PLC 7%% Uns In Slk 82M7 - C99 % 
(3UyS4) 

Bats Mvanlmante PLC 7%% Um In 88c 92/ 
87 - £88%* 

Balmy PLC 85% Cum Rad Rf 2014 £1 - 
116 

Qergesan d-y AS "8" Non Vtg Sha NK2^ - 
MC15B% J£ 9^1 00 Xfi 4 


Farm Inf Ourat ifl Sha £1009 - £59 % 
Bkxkbuater&itertdnrnaritCorpShaConi 
SK saio - £17% 8 28406 PMyOq 
Bkia CMS hduatrlaa PLC ADR fill) - 84% 
pBA* «4) 

BmcHbrd 5 fihglay OuMdhtg SocUtyl J%% 
Pam M Boring Sha £10000 - £113% 
(IMUfM) 

tbodfoid & Btagtey BuMteg 8acteta13% 

Penn tnt Basing Shs £10000 - £127% 
Brant Jhtonaeonal PLC 9% Cum Rsd Rtf £1 
-93% 4% 

Brwt WMoar Group PLC Wta to Sub fra Ord 
-1 

Brant Waliar Groi4> PIC VW Rta 2nd Cm 
Rad FW 200MBXI7 £1 - 7 % 

Brant Writer Oram PIC 841% 3rd Nan-Cum 
Cm Rad 2007/10 £1-2% 

Bristol Water Httgs PLC OTO £1 - £10.1 102 
{4My94J 

EMatal 8 Was EbASng Sodaty 13%% Pam 
bit BataMg 8h* £1000 - £122% 3 % % 4 
Maria Bidding Society 18% Pam tat 
Bsartag Shs £1000 - £122% 9 
BtUah Akmys PUC ADR (lOrl) - 883%* 
BriMpAiwfcan Tobacco Co Ld 5% Clan rtf 

mei - 57 

Srtdah PWrisum Cu PLC 8% Cum 1st ftf £1 
-B1(4MyS4) 

BrUah Patrofeum Co PLC 9% Cun prf 

£1 - 100 (3My64) 

Bridah SBoat PLC ADR flOtl) - *22% % % 
BrMsh Sugra PIC 10%% Rad Dab S8c 2013 

- £117 

ButakWLFJ 8 Co PLC Ord Sha 5p - 32 
(4MyS4) 

Sutowf -tP.lf-KSg* PLC 8%H 2nd Cum Pit 
£1 -118 

Bund PLC 7% Cm Una Ui Stk 05/87 -Cl 09 
Butmah Casual PLG 8% Cun 1st ftf SK £1 

- 66 (3My94) 

Bumah Onbaf PLC «« Cun aid Pit £f - 
82 (Iftr yfrl ) 

Bramah Ckaml PLC 7%% Cun Rad Prf £1 - 
72 % (4MyB4) 

Bumah Caatral PLC 8% Cun Pri £1 - 81 2 
(3My«4) 

Bum Qraup PIC 8% Cnv Una Ln Slk 1008/ 
2001 -£32 3% 

Butte NBUng PLC Wte to Sub far Ord -0% 
Butte IftSng PLC 10% ?M) Cnv Cum Rad 
Prf IBM Hta-2%(4My«4> 

Caflyns PIC 8%% Cun lat Rrf £1 - 78 
Cafitonta Envoy Co Inc Shs of Coro SHc 
B-*1W(« 

WMar Cu Cons Qrd Bdt - £8600 


800876- 

Conbridga 

PMye* 



Cambridge Water Co 10% Rsd Dab SOcSB/ 
98 -El 03% (Z9Ap94) 

Canadian Ovara Pack InduabLd Com Nfxr- 
840 (3My&4) 

Censdan PncHc Ld 4% Nan-Cun Prigrtarch 
TVansq ESdg NPV - 05 (29Ap94) 

CariWa Graro nc 4J38% *M) Rad Cm Rf 
1988 £1-77 

Csiten OommuilcaBcns PLC ADR (fcl) - 

*27% (4My94 

Carbon Commiriealkmt PIC 7%% Cm 
Slfcoiri Bda 2007(Rtg £5000) - £142 

UIMU1 

cram PIC 1028% Cum Prf £1 - 120 
Cater Aten Hdgs nc 5% Cum Prf £1 - 45% 

7% 

CatarpUar Ins Shs of Oom 30c *1 -5113% 

1 PLC Wts Id Sub far Od -42 

of Cam Sdt S02S - 

BUU8oe11%% 
-£117% 

PIC9%% Cum Rod 
PLC9% ChvltasLn 
Cm Cun Rod 

a^trtra PUSfLMf^kriJrd Cnv Una Ln Stk 
aooom - £99 (4*tyW) 

Cuuatrf Corporatton Sh» of Com Slk 80J33 1/ 
3 - 831% (4My94) 

Coab Wyela PLC 42% Cun Plf£1 -88 
CommaraW Union PLC 9%% Cum tad Prf 
£1-105%% 

CananarcM Unto nc 8%% Cun ten] Prf 
£1 -11S% 

Co-OporaBva Batdt PLC 925% Nun-Clan tad 
Prf £1 -111% 2 

Cookaan Group PIC 42% Cun Prf £1 -70 
(4MyS49 

OaurtaUdB PIC 5%% Una Ln Sdt 84/96 - 
£94 p My H ) 

Courttatete PLC 7%% Urn Ln 81k 2000/06 - 
£94% 

Coals PLC 52% (Nad CUn Prf £1 - 78 
Wye* 

Covanby Bidding Sodaty 12%% Pam Inter 
sat Baarirrg Site CWOO - £114% S 
Driy Mri & Ganard Trust PIC Otd GOp - 
1 * 2 * 

Dafgafy PIC 423% Cun nf £1 - 73 (*My9% 
Dobanirani nc 7%% Una In Stk 200207 - 
£97 8% pMyfl4) 

Oa*anW)(iA) PLC 10%% Dab S(k 2017 - 
£111%(4Mye* 

Dowhurat PIC Ordiqp - 62 
Dominion Enragy PIC Ord Sp - 11% 

(29Ap04) 

Drummo nd Group PIC 8% Cum Prf £1 -SS 
(9MyS4) 

Dirisp Ptanbdtos LUSH Cum Prf Cl -93 
Eaottxiuna Water Co 10%% Red Dab Stk 
95/97 - £102% 

Eman PLC 825p*ls0 Cm Cum Rad Rrf Sp 
-72% 4 

50 

%2l24228%224 3 3.70a55%8 
%7%BS% 

Euw Dtarny SCA Sha FRIO (Pwaatoy 
Racstat* -3702 

Euo Dfanoy SCA Sha FRfO (Br) - FR32.7 
EUrokmd PLCrCunrtaowial SA Unite (1 BXLC 
Ord 40p ft 1 ESA. FRIO) pi) - FR43JS1 
BBApiM) 

Eurotunnel PLC/Euwuari SA Udia 
(Staowm Inscnbaifl - FR74H214S 3SLS3 40 
40.1245%22222%1« 

ISAFndrWte 
1 Inactfbad) - £354)8* 

1 Co PLC Old Stk Sp . 330 

42% Cun 1st Prf Stk Cl - 

FMtayL 1C 42% Cun 2nd Ptf Slk £1 



a*fagS«ra*11%%P»n. 
Sha £10000 - £101% 

M Naaond Flnonea Carp PIC 7% Cnv 
Cun Rod Prf £1 -1499 
Ftoans PLC ADR (4.1) • S9% 22 
Fotera Group PLC Ord 3p - 48 (3My94) 

Ftata PLC 8.1% Itas In Slk 05/2000 - 
£101% {2BAp94) 

FUtruna Mason PLC Ord Slk £1 -QJ2 

PLC *%% Cm Cum Rad Prf 
dktePLC 7% Cm Cum Rad Prf £1 


mm 

FrWyHoteta 
£1 -73 8(4), 


GKN PLC ADR llrf) - 5945 (4MyS4) 

ON Qtata Narde L3 Sta OKI 00 - DK586 
B41(My04) 

G.T. CHki Growth FUM Ld Ord 5001 - £28 

General Aeddanf PlG 7%% Cun Irrd Prf £1 
-89% 

Generu Aeddanf PLC <ft% Cun tad W £l 
-114% 

Ganara Badric Os PLC ADR (in) - *4% 

(29*004) 

Gtoa & Dandy PLC Ckd 1 Dp -101 pSApM] 

GtakO Group Ld 7%% Unt Ln 3ft 88/BS 90p 
-49(3My0e 

aand Ussupdttn PUS 6% Clan Pit B - 88 
GSAP94) 

Grand Mdrapattan nC 6%% Cum Prf £1 - 
00 72 B9Ap94) 


Groat unorand Staroa PIC ADR ph) - *82 

Great Unhrarad Sttras PLC 8%% Rad Uns 
Ln Stk - £86(4Wy94) 

Gnat Unhwsal Starai PLC 8%% Rad Ites 

Uiak-£75(3Uy9^ 

Grawri* GroiSJ PLC 8 % Cun nt £1 * 102 8 

CbaansSs Group PtC 11 %% Dab 30 c 2814 - 

azp * 

Gwralta ttonp PIC 7 % Cm Stteud Bds 
2003 (Hag) - £110 

OuadraBMmheatsr Brartre Nans PLC 

4%cunPtf£i-55(zaApee 

Gremara PIC ADR Prf) - K 

HSBC Hdgs PLC Old «t10 
- 8l0% SH7B4904 Jti 


Meronm ftari Qraw PUS B%% Cm ites 

Ln Stk 9004 - £74 {29ApS4) 

, «ss,'sr-^aa , ‘ 

Mwcuy OWiora Staring Trate flhs of 

NPUpobdi 


Mkduy OMnre Snriflg That Shs of 
NP^adflc Raa* - 2&3 pSAp94) 
Maram Docks, & hratawr Co 8 %% Rw 




Rsd D>b 
Una Ln Sbt 


tag Sha 050000- £91 <4My94) 

HaBtra BuMbig Sockriy 12% Parmk*BaSF- 
to Sha £1 Pre £60009 - £119% 

Hridki Haringa PLC Ord dp - 00 1 
Hdma PLC 11% Cum nf £1 - 140 {2SApS4) 
Hararmson PLC Onl 25p - 481 2 3 8 8 10 
Hardys A Hanaons PLC Orel Hp - 261% 


Hi a Sha of Cam Blk 80AI - 



1 PLC 10 %% 1 st M« Dab 

ito PLC% 2 % lat Mtg Dab 

Sat 20 ie-C 10 B%( 4 My 94 ) 

Hanftt Group PLC 10 % Cum Prf £1 - 115 
( 3 MyB 4 ) 

m S«mid Surftjg ftcad M Fd Pig Red Prf 
1 p- 1312 ( 20 Ap 94 ) 

WMorm Hdgs PIC ADR( 4 .- 1 ) - SMB 
Hosnea Protection Qoup Shs of Com Slk 
*025 - 24 ( 3 MyB 4 ) 

IS twndavsn PUM NV CM FUOlOI - CIS* 
lealand Group PLG Cm Cun Rad Ptf 20 p - 
12 S 5 

taduaind Control Swvtara Grp nCQTO lOp - 
156 7 

M Stodc Eachango of UKBRsp of bLd 7 %% 
Mtg Deb Slk 90/95 - £ 99 % % ( 2 BAp 94 ) 
btah UfB PLC Old Irtaio - E 2.11 2.13 
janten Mofheaan HMgs Ld Ord 8026 (Hang 
Kang Regtaur) vB 427 443 SH 5021 
40772 4495 2127 -7858 12142 214257 
Jtadte* Strategic Wdg* tef Old 9 D 4 J 5 0 *r« 
Kono fingriar) - £2285 SH 26 J 1172 
211767 25008 72155 25 
Johnson Qoup Cteanam PLC 7 Jk> (Net) Cm 
Cun Ral Prf lOp - 177 ( 4 My 94 ) 
JohnaoixMtatfwy PLC 3 ^% (Brty S?« Cun 
Ptf £ 1-52 

Kdsoy Industrin PIC 11 %% Cun Prf £1 - 
122 ( 3 ) 404 ) 

Karoa-Eurape FuM Ld ShaODR to Eb) 80.10 
(Cpn % - * 4082 % 4187 % 

Knamar AS. Frra A Sha MC 12 J 50 - 
MC 33842 40.77 1 2.14 4 .18 
Ladbrtka Group RC ADR (Iri) - S 2 J 2 2 % 
Lamont Hldgs PLC 10 % 3 rd Cum Prf £1 - 
110 ( 2 BApB 4 ) 

LaM Sacutttos PIC 9 % 1 st Mg Dob S* 98 / 
2001 -£Ktt %3 

Land 8 aeu 1 ikn PLC 6 %% Um Ln Stk 92/97 
-E 9 d%RMy 94 ) 

Lobowo Ptaflnun Mnra LdCkd R 021 -85 
Loads 5 HUbeck Arfdtag Sucfefy 13 %% 
Pam tat Boadng Sha £1000 - fcia% 

Loads Pemrawra BuSdtag Sodaty 13 %% 
Perm tat Basing £ 50000 -£ 133 % 
LanriNJ oh rfP utnuah to PIC 7 %% Cun Prf 
StkCf - 80 ( 3 Mt «4 . , 

London BacuMss PLC Otadip- 3 % % 

( 4 Myfl 4 ) 

Lmtn PIC ADR ( 1 : 1 ) - 82.1 ( 4 My 94 ) 

Lookars PIC 8 % Cm Cum Rad (M £1 - 128 
SOflSMpP* 

Low & Banar PLC B%% 3 rd Cum Ftf S 8 c £1 

Low«mSoo PIC 623 % Cum Cm Rad Prf 
£1 -98 % 7 25 B 

(jum(Rbbarf HJ d Co PLC 972 % (Ns* Oir 
Cum Rad Prf lOp - 40 ( 29 Ap 94 ) 

MEPC IRC 8 % Uns Ln Sdt 200006 - £ 93 % 
MEPC PIC 10 %% Uns Ln Slk 2032 - 
£ 108 %* 

McCarthy d Stcna PLC 575 % Cun Rad Prf 
2003 £1 - 91 % 3 

Mdnamoy Pnparttea PLC *A' (kd bCOI. 10 - 
E 0.1 ( 29 Ap 84 ) 

Mandafri Oriarttri tnbtanadanU Ld Ord S 026 
(Hong Kong Ratf - 8 HD 23908 
ktanaflou Bnmary PIC 11 %% Dob Slk 2010 
- £ 122 % ( 28 ApS 4 ) 

Maris 5 Bpraosr PIC ADR (Brf) - * 39>2 
Maria & Spsncsr PLC 7 % Cun Prf £1 -80 

mm 

Mtashate PLC 10 % Qan Prf £1 -108 
M* 9 Kn,nwns> 0 on 5 Braahad PIC 7 % Uns 
Ln SVc 93 M -£ 94 % 

Madam PIC ADR ( 4 d) - 884 2 25 ( 3 My 94 ) 


■ of NFV-C22S 

MCRC 7 %%CnvGd«: . 

NMC aoite PIC TJSp m Out I 

1-113 

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r PIC ADR (KM) - £ 8325 * 

r PLC 7 % Cum Prf 

i nc 12%% 

- £122 

Arose Ld RQ 20 • 

j Soctefy 12 %% Poroi 
mat Bearing Shs £1009 - E 11 S% 

1 Suroy Wdv Ld 9 %% Rad Dsb Slk 
r Co 3 % Peon Dab 


Co Shs el Corn 80 c 35 



Ontario 4 Queoaa R<*» 

p^STg^^-- 


I Group PLC DM 250-248 
iZbcteria PLC10H Cum PrfEI - 


t Group PLC ADR (fcl) * *1 JB 

• tylgftHPmtat 

' PLG 12% Subord Itaa Ln 

sat 2001 - £111% PMyeq, _ ^ 

r (WK) a«M «« "B 1 OH «*> - 1® 

1 MUi) Group PuC 5%% Rsd Itas Ln 
SSc- £S3fB4y9* 

S u Alik ina Baadrsm PLC ACT Sg - *gfr 
SnriHiKlM Boudam PLC/SnAhWtaa ADR 

sJulftMddie Wttar PLC^ 9%% Rsd 
Dab sec 98/2000 -EMO 
Stendard Qrattaad PLC 12%% Subord Ltas 

UiStk2D02fflr-ni8 

r tadraUra PLC far P*»%% 

1 PLC 9%% Rad Cum Prf 

S^Uto^^SomPU:<M29p-41S 

Strata) 4 Son. Ld 83% Cun Prf £1 - 

Rsd ^ iSito'A’ 

Plotted Prf) -1042 524 (8*0*1 

TSB Group PLC 10%% Subord Ln Sft 2008 
-£110 

TSB OCtahore hv Itend Ld PtnRod W 
ipfften Amsrican Ctas^ -48WB 

TSB Oflihora Im Raw id Pig Rsd Prf 1p*St 
EoukyCteM)- 32444 
TT Qoup PLC 10275% Cm Cum Red M 

Shs £1 1997 - 290 (4MyS4) 

Tmko PLC 4% Uns Dare Disc Ui S8c 2008 - 
£ 83 % 


Bridah Anoste Trust PLC - A' S% Prt 
O^bAtaria Tlwrt PLC EquMaa kxkK ULS 

ciri^^inQ^w | XPLCOro2Sp-455 

aemlaria Kuraa BnatUng Gfiraih FundBM 

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DmtratMf I^FlCWtataajft- 

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amdta tacom* Grwdi hv Ta) Ptfi 3%* 

Ec^buqh imraiirenl thiai PLC S25H Qm 

pfi»c-£S7(4»4yS4) 

Ijytarfr & Seottteh kwooiora PLC U’ 2Sp - 

aai e ftnfl nflfl 

Flraduy Smaler 0o*S Itast FlC «ro ON Rf 


Thatand teternatkari Raid Id PW 8ha 8021 
grera to Br) - *27 27.1308S»% 


l 27% 


PMub 4 Orisnri Steam Nra Co 6% CUm 
PMSac-£54%(4MyBfl 
Parinscter « Orfantaf Stosn New Co 3%% 

2nd era sadPen* - 238% 

Perictas Rxto PLC 8pOM) Ore Cm Red Prf 
100-9448% 1% 2 2 25% S 

PUrotew 8 A Ord Shs NPV (Br ta Danoro 12 
4 IQ - BF10683 700 10 29 6 38 48 GO 60 
60 8032 91.1025 

PUarda PLC 9%% Otan M £1 -B2(4My94) 
Ptontstxaok Group PLC 475% Cm Prf BV 
2001 IOp-88 

Pokphsnd (CP J Co Ld Shs 8026 fttog 

Kang ItegbteracO - 3H22323 

PotglattmnHt PWteuns Ld Old RQ22S - 360 
MMyfM) 

PrSmGan PIC AOR (1K1) - S73% (4My94 
Prarntta Harih Group PLC Ord ip - 2% 
Qulelta Group PLC 10% Cun Prf £1 - 120 
FLEAHtfesPLC 12% Cm Uns Ln Stk 2000 
- 890 (3Myfl4) 

RPH Ld 4%% Uns Ln Sft 200409 - £40 
RPH 12 9% Uns Ln Sft 9912004 -£98 
RTZ Cerpurito PLC 3225% 'A* Cum Prf 
£1 -S2(Z9Ap84) 

Road Bsctranies PLC AOR(2rf) -S728 
(3My94) 

Rvfc Organlsatto PLC AQR CZrf) * *1245 
FtecklB 4 Dorian PLC 8% Cum Pit £1 - 52 
Rood Inter m flo na t PLC 846% (Frrty 5% 96) 
Cun Rsd Prf £1 - 56 

RataB Crapomdon PLC *36% (FWy 8%«) 
Cun 3rd Prf £1 - 66 
Ropnar PIC 11%% Cun Prf £1 - 130 2 

*rGttx 5 > PLC B% Una Ln Sft 83/98 - 


Saabri 4 SastcN Cu PLC ADR (3:1) -*8* 
Sraterf & Soracte Co PLC 6% CmUnsLn 
Sft 20(5 - £77 C4M/JM] 

Sataabuyd PLC 8% tad Uns Ln Sft - £B8»2 
MlyfyDil 

Schol PLC 6%% Cm cun Red Prf 2006/11 
£1 -98 (29ApB4) 

Schroder Japanese Mamnc Fund Ld IOR (&> 
Danam 100 Shs 4 10000 SM) - *150 


ScbtBah Hy d ro- Q sokki PIC Ckd 6tta - 328 % 
9 9 % 30 .17 %1 %24587 
Scottish IMrapdlfan Pmpectf PLC f 0%% 
1% MU Dob S6( 2(H6 - £104 
SoottMi 4 Nsarraalte PIC 7% Cm Cun Prf 
£1 -230 (4My94) 

Sauawi Puwsr PLC ora 50p - 335 6 7 7 % 8 
23% 99.17% 27 4040%%1 1 %23 
3 % 466% 

Soars PIC 7%% Uns Ur Sft 82/97 - £97% 
(4My94) 

8avam Rknr Crasalng PLC 8% tadtoe-LUksd 
Deb sar 2012 (9244%) - £1 17% CMyg* 
Shal Trtaiapart&IVadbigOo PLC Qrd Shs (fk) 
25p(Cpn1BQ-*10% 

StMd Group PIC Ora Sp - 18 (3My94) 

SMrfd Group PLC 544% (Ns* Cm Cun Red 
MCI -29 (3My94) 

Shaprite Rrawa (UK) PIC 7273p(NaO Cun 
Rad Prf Shs 2009 - 93%* 

SkBaw Goup PLC 7%% Uns Ln Slk 2003/08 
-ESS 


THORN BB PLC ADR CD) - *jnt(«»y9^ 
Tootal Group PLC 4%% imp DU> Sft - £64 
#3MhM 

Trata&rHoura WC W%% ltas Ln SR 
2001AM - £101 % _ J#W 

TranaabanUc Hoktngs RC B 6% Qi» Prf £1 
-978 

Ttanaport Daiat o p ro a nl Group PIC 8%% 

Uns Ln SBc 93/96 - £100* 

UnlgMa PLC ADR (Iff) - *8 COAfSW) 

Unlawr PLC ADR (*:!) - B4244W* 

Unto btamadansl Go PIC 8% Cum M Sft 
£1 -60(4My94) 

Unto tatamsiBonal Co PIC 7% Cun W88c 
£1-67 (4My94) 

Unisys Corp Oom Stk 8021 -810% PMy9*) 
UtWy CaUaPLC Wtaranta is sub ISr Old - 
21 (3My94) 

VSkDw PLC 9275% Deb Sft 2015 - 

VbdsfOne Group PIC AORflOri) ■ 881% % % 
% 22 

WWkflngtordJohn) PIC *2% Gum Frf £1 - 
85 (3Myfl4) 

Watarfnutia* PLC Orf 5p - 31 
WMburg (SjG) Group PIC 7%% Cun Prf £1 
-101 

WSmsr Eatato HMg* RC B%% Uns Ln 88c 
91/98 - £BS(HIAp(M) 

VKatmouMWttrf PLC B%% Cun Red Pit 
2006 £1 - 107 

WaBcoma PLC ADR (Irt) -8827472 
Werrriay PLC flpgtaQCm Cun Rad M 1999 

WMbraod PLC 4%% Rad Deb 98c 99/2004 « 
£78 (*My94) 

Wldtbnad PLC 7%% Uns Ln Sft 9GB9 - 
£93% 

WNtaraad PIC 7%% Uns Ln SOc 9Bffl000 - 
£89 

WMbrrad PIC 10%% Una Ln sot 300005 - 
£107% (29Ap94) 

WBMn HHg* PLC 10%% Cun M £1 - 124 
WBs Corroon Group PLC ADR (K1 j - 817 17 
1742 

Woatcocnbera Group PLC 7%% Cun Prf Slk 
£1 -85(29Ap94 

Wookra mb ara Qoup PLC 8% Cum 2nd Prf 
S8CE1 -ra(29Ap94) 

wyovste Gsrdan Contras PLC 84% OW) Cm 
Cun Rod Rrf £1 - 181 90 (28Ap94) 

Mam Cup Cam S8t SI -*100% 
Yatksl*»-Tyne Toss TV Hdgs PLC Wta 10 
aub far Old -163 5 

ZtamOta Conastetatod Cupper Mnra Ld*B* 
Ord K10-22635(4My94) 

Investment Trusts 

AbnuW Near Douaitav Rust PIC C Shs 50p 
-241 

Brita QHfara Jsptai Thut PLC Wta to Sub 
Ord Sha -2102 

BoDs GUtonl Shin Mppan PLC Warrants to 
aub far Old - 135 (3MyB*) 

Banbars Irw ratmo nt Ttuat PLC 10%% Dab 
Sft 2016- £115% (3My94) 

Barona m aad kw ra b i ia n M Thai PLC Wta te 
aub (or Ora -33(3MyB4) 


n— fan CteMriwuaa tn That PLC 11% Data 
^^kwtorth Tst PLCZaro DM- 

SBt20l8-£11*%S%(29ApOfl 

HTR Ja pura Si radar Cute That PLCtkd 
£0p - 705 0 % % 7 7 

Huigraan tevaatmant Oo Ld Warrants to o*> 
far Ord -314 

knaatora Capitet Trout PLC 6%% Cum Prf 
SDt-«81%(4My9* 

Latod Sriaot taraaknant Thri Ld PM Rad 
Prf (Lip Global AcSva Find - £1346 1359 


Laztad Salact kinaanani That Ld Ptg Rad 

Prf 0.lp UK Acttw Fund - £1*21 1*24 

(29/VA4) 

Laztad Select imaatmtaH Wuat Ld P*) Rad 
Prf 0.1p UJL LkMd Aasets Fund - CTO 


Lazud Select taveatmart Thrat Ld Ptg Rad 
Rf 0.1p UJL tadw FUM - £15% 1428 


LazaTO Sated kwaotmant Ihut 14 PIB Rad 
PrftLlp LLS. tatto FuM - £1743 1748 
QMpgX) 

Laart B ate d Imaai m ant Trust Ld Ptg (ted 
Pit 0.ip Jurat Ware Fbrrd - 8614 4J 
BflApGMO 

Laztad Sriad tavratmant That Ld Ptg Rid 
Prf (Lip Brie* Index Fund - £17.74 17JT 
0WV44) 

London 4 SI Larannca tavoatora* PLCOrd 
Gp-151%2(4My94) 

Mores taraabnad That PIC 11% Deb Sft 
2012 - £119% (3My94 
MorepaiGninfaiKdlRAirMCo's Tst PLCWta to 
Wb for Old -44% 8 

Northam taduat Imprav Triad PLC M £1 - 
S10(4My9Q 

Paribas French kwasimsnt Thrat PLCSsm a A* 
WSmmta to aub fbr Ord - 40 
Sdndsr Koras Fund PLC Wta 10 Sub fur 
Ord (B) -87% (3My94) 

ScdSah AmariCtai kiraatmant Cu nCEteA- 
Unbidra Uns Ln Sft 2004- 182 (3My9fl 
Scottish NaUonai That PIC 10% Deb Stk 
2011 -£107% 

Shim H%l>-YMdn|i Suite GDIS TstWIs to 
8 ub far Ore) - 73 

Sfrfwa tavostmert Trust PLC Rarisad War- 
rants to sub ior Qrd - 7% 

TR Ota of London That PLC 10%% Dab Sft 
2020 - £113% 0BAp94) 
ntrepnorton That PLC 12 sno%DreSft 
2010 - £127% (3My94) 

VIHgmora Praparty tavoatawit Td PLONK to 
Sub tor Old - 48 (4My9* 

Winn tavoatamt Oo PLC 8%% Dab Stk 
2016-297% 

USM Appendix 

BLP Gtouj PLC 8 p (Nat) CW Cum Rad Rrf 
10p-l0B(3UyM) 

FBD HoUnga PLC Old UBL6Q - E145 
MMVM 

Mkltod 4 Soouteh Rsaouraw PLC Old lOp - 
3% 4 % 

Total Systems PLC Old 5p - 28 

Rule 535(2) 

Amrigamated Mataf Corp PLC &*% Oxn PVf 
£l-OL47 

Anonal RMttad Ctab PIC Ord £1 -£460 
Associated Brittatikidudriu PLC Onl £1 - 
£345 p8Ap94) 

Aato VBa Footbal Ctob PLC Onl CS(f irata) 
-270f4My94) 

Bardaya riraatmsnt FUM(CX) Staring Bd Fd 
-20A40748* 


Sownaae Latoura RC Ord £1 -EMQMyfl* 
Candham PLC Ort tp - OLIO* 

CosrilftC BJ28% (FtnHr75%)OanPifC1 - 

8X3 

tLaSJriaRSoraned PLC Ord I0fr-C24 
(111)91) 

Dararon Mdga PLC Ckd 1QP - £«J7 44 
(3MW 

Doutfas Ora PLC Ord 28p - O C»A(lB4) 

Eaat of Entfand ftoktenW Prop PUXH 
-£0%(Z9Ap94 

Exdwm PLC Old COP ■ 2248 (*My9*) 
Faxcad Broadoaat Qwpondon PLC Ora Gp . 
20% 0% 

Gander HcMteQS PLC Ord Ip - GOJ37 
QtopUn Tate riri on PLCOrd lOp. £34 
tteMostar Hotab PIC Od 10p - £0% 
Grayatona PLC 194H9MI Ncn^Ag Cum 
Cm Pit 29p - BL58 (3MRM) 

Guamasy On UgW Co Ld (M lOp • COLTS . 

Hflbama Thnonta Ld CM ET - £l«3Z PM|94) 

ITS Gimp PIC Ort £1 - £2% 

Jud Grow PIC OM 1p-£D43 
Ktakrarart Banaopgo* Rmd Mhi NB GBI Baw 

• £14544996* 

Labyrinth Group PLO Ckd lOp • £056 
BBA|j9fl 

La RkdMte Saoraa Ld Old £1 -£246(4MytM) 
Marina 4 Itaroanrite Sacurittra PIC Ord 
UOS »-£24 

MottPc MarMtanal Group PIC CM ip - 
A42IL43 

N.WF.LdOra£1 -242 8% 

KaOond Paridng Cup W ftd lOp - £*33 
(29AC84) 

Nodi Waal Btpluralto PLC Od Ip • 2% % 
PM AiKkrau Raaourora PLC OM ip - £0& 
PorpahraEJaraari Oretwra Erotating CrfS - 
*44279* 

ParpatedJaraay) Qftahcra Far Eaatam Qwh 
Fd- *4422937 RSAp94) 
ftapstualUaraay) CMah ura UK G wrarih - 
*24874* 2.7132* 2JI032* 

Quay Proporttoa W £1 - £U® (29Ap9* 
Rrargara FootbaB Cftjb PLC Ord Wp - £04 
ftogais FOodraB CMj PIC B Dab Sft £1300 

- £700 (3My94) 

Rangars Faottral CM> PIC O Dab Sft E1BQQ 

- Cl 600 

Sited tndiHtris* PU5 New Ora 7%p pp P* 

- £04325 (*My#4) 

Shtphart Nsams Ld 'A* Ort £1 - 28% 
«4M*» 

South Goan HMgs PIC Otd Ip - £04075 
Southern NawapaotaS PLC OnlCl - £429 
Sun 01 Britain Ld 01 Royrity Stk IMa ip - 
36 (*My94) 

Systems CoonscOon PLC Ord ip - 0X41 
ffBApto 

Thgwtara83wte04 Co PLC Ora 29p - 22% 
(3My94) 

Tkagtnr PLC Ort Bp - 00.13 0.15 
Ticker Nobrork PLC Ord £1 - £12% 13 13% 
13% 

UAPT-tntaftVc PLC Ord 2Sp - D J 14 
Vista EnMrtatamanta PLC Ort 6p - BXDl 
Wsrtiwg Asad Managamanl Jarray Msreuy 
m Gold 4 General Fd - *141* 
UWwtebbOd "A" NotlV Ord SSp - £18 
Yam Bros «ne Ludgra PLC Ort 25p - 22% 
(29AP94) 

YurtoMa Houring Thist PUC Old SOp - ISO 

RULE S3S W W 
Bargatna markod fin sacurittes 
whara prindjrai martret ta outtkla 
the UK and RapuUe of batand. 
Quotation has not bean gnantad h 

London and dtaoHnga are not 

meoRfad in the OTfleW UaL 

Capa Range 08 AS04B8 
Butt Bamtraeang £105 (204) 

CBy Davafopmanta 8*7.96 (03) 

Foroat LsboronriM *4325 (35) 

Hyran Davricp m a m HK81941 (*5) 

Mrare 4 Rnbarta Hdgs. FnjS5.10 
OB Bsaroh BOO (4JS) 
PortmnkMna404(*^ 

Stair Oo m municsaons SK4104*4U177 

(44) 

ftr f ter u drara of to S toc k aa taa nflaCarara 


MMMIU I nil s 


soldi CRN URIC A 
BUSINESS IMKLLIGENCK 


Changes throughout Southern Africa are creating 
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The ktoutafaB ym proride aB.be roiy I* M od by rare r rrlw qrthy 


FINANCIAL TIMES 


NEwsurmsu 


. Norebo Oac Soub«lBn<J« 

London SRI SHL, Engba* ItCRfaxencdNo. 490994 VATRcgfatntioa No. QB 273SJ7I 21. 


To AmMltni of 

THE AETNA INTERNATIONAL UMBRELLA FUND 
Soclitf dlmrtatistmment & Capital Variable 
47, Boulevard Royal LrH49 Luxembourg 
R-CS. Luxembourg No. B 27471 
April 29 , 1594 

NOTICE OF ANNUAL GENERAL MEETING 
Dear Shareholder 

We have pleasure In inviting you to attend Die Annual General Meetin g of 
sharcfaoliav. which will be held on Tuesday, May 24, 1994 at 1L00 am at 
the offices of State Street Bank Luxembourg S-A_, 47 Boulevard Royal, 
L-2449 Luxembourg, with the following agenda; 

AtXNOA 

1. To approve the audited Hnandal Statements of the Company for the 
year ended December 31, 1993. 

2- To discharge the Directors and the Auditors with respect to the 
performance of their duties daring the ywu- ended December 31, 1991. 

3. To ratify the appointment of new Ptrectora and reagnafiotw of retiring 
directors and to re-eiect the pr es en t Directors and Auditors for the 


4. To ratify the declaration of interim dividends in respect of each dam of 
duns for each Fund. 

5. Any Other businws which may proparly be brought before the Meeting. 
Shareholders are advised that no quorum is req ui ted for the items on the 


present or re pre sented at the Meeting. Each share is entitled to one vote. A 
shareholder may act at any Meeting by proxy. To be valid, proxies must be 
available at the registered office by no later lhan May 17, 1994 at 5J)0 pm. 
Should you be unable to attend this Meeting, kindly sign, date and 
return the eodosed font of proxy by fox and by mail before May 17, 1994 
for the attention of Petra Ries, State Street Bonk, Luxembourg SA., 
fox number -*392-470204. , 

Yours faithfully. 

By order of the Board of Dincbm 


Signal 


O 130 + software appBcotions Q 
© RT DATA FROM $10 A DAY O 
O Sigari SOFTWARE GUIDE O 
Cafl London® 44 + (0) 71 231 3666 

tar yo^gtedB and apna price Bsl 


^NedBoyd 


Shareholders in RoyaJ NedUoyd Group N.V. and other entitled parties are invited to attend the 
Annual General Meeting of Shareholders which wffl take place on Thursday 26 May 1694 at 
14.00 hours in the Rotterdam Hail of Beure-WorW Trade Center, Seursplein 37 In Rottentem. 

The agenda for the meeting comprises, amongst others, the dscusshm and approval ot the 
Financial Statements 1 993, andlhe adoption oJ the regulation concerning the camfidacy and 
appointment of members of the Committee of Shareholders. The complete agenda, the annual 
report of 1993 and the aforementioned regulation we available for inspection and perusal at the 
office of the Company and at the offices named hereafter, where a copy can be obtained free 
of charge. 

Registration 

To obtain entry to the meeting and to be able to exercise the rights attached to bearer shares, 
holders of bearer shares must have deposited their shares at the fates! on Thursday 19 May 
1994 at the office of the Company, or atthe Main Office of one of t he foll owing banks: 

-ABN AMRO Bank N.V., Herengracht 597, 1017 CE AMSTERDAM 
-MeesPierson N.V., Rohm 55, 1012 KK AMSTERDAM 
-Kas-Associatie N.V„ Spufsfraat 172, 1012 VT AMSTERDAM 
-Commerzbank AG, Neue Mainzerstrasse 32-36, 63261 FRANKFURT AM MAIN 
The certificate ot deposit from the bank wffl serve as admission card to the meeting. 

To obtain entry to the meeting and to be able to exercise the rights attached to registered shares, 
holders of registered shares must have given written notice of such intention at the latest on 
Thursday 19 May 1994 to the Executive Board (Secretariat Executive Board, Boompjes 40, 

301 1 XB Rotterdam, The Netherlands) who wifl then issue an admisskin card to the meeting: - 

Proxies 

Shareholders wishing to be represented at the meeting through a written proxy are being advised 
that their form of proxy must have been signed by the rlghttuJ owner of the relevant sha re (s). 

In addition, the form of proxy must have been received In the office of the Company by 
matt or fax not later than on Thursday 19 May 1994 (Secretariat Executive Board, Boompjea 
40,3011 XB Rotterdam, The Netherlands, fax 31-10-400 6190). When registering, the hoWer of 
bearer shares win receive a form of proxy from the bank; the holder of registered shares wA . 
receive a form of proxy from the Executive Board. 


Rotterdam, 7 May 1994 


Executive Board 


Telecom Markets is the essentia) source rrf regular information about 
the global telecommunications Industry. It provides both 
hard-to-obtaln news and specialist analysis for the professional 23 
times each year, and (s available only on subscription from the 
Financial Times. 



WTEHJMATIOftlAL COVERAGE 

TM is designed so that Information is readily accessible and quickly 
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* Company analysis 

• Opportunities m new marirets 

* Licensing agreements 

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f^SS£( iai^ !BA^ ' a c(ear vfow of the fest-movHig world of International 

r_BT i 11 | - . - i — telecommunications with: 

NEWSLETTERS 







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FINANCIAL TIMES WEEKEND MAY 7/MAY 8 1994 


15 


X 


LONDON STOCK EXCHANGE 


MARKET REPORT 


... 

» : vr 

C + \ .. . 


■'•-l 



Footsie closes unchanged after erratic session 


FT-SE-A All-Share Index 


1,875 


By Steve Thompson 

London’s equity market survived 
the savage mauling or the Conser- 
vative party In the countrywide 
local elections and put up an 
impressively robust defensive per- 
formance in the face of a steep fell 
in US stocks and bonds. The latter 
reacted to a much higher than 
expected increase in US non-farm 
payrolls announced over the lunch- 
time period 

After moving in a near 30-point 
range, the FT-SE 100 index fought 
the session to an honourable draw, 
closing exactly unchanged at 
3,106.0. Even more Impressive was 
the performance of the market’s 
second-liners, which tended to 
Ignore much of the anxiety sur- 
rounding bonds and the FT-SE 100 
leaders. The FT-SE Mid 250 index 


TRADING VOLUME 


■ Mafor Stocks Yesterday 

VoL CWng Oar's 
000a Dries ctsno* 


closed a net 0.4 firmer at 3,771.0. 

Gilt-edged stocks, on the other 
hand, were always hi negative terri- 
tory, with the long-dated stocks 
down in the region of a half-point 
for much of the morning, before 
retreating further in the afternoon, 
trailing in the wake of marked 
weakness in US Treasury bonds. As 
London markets closed for the day 
the US 30-year long bond was down 
almost two full points, dragging 
long-dated gilts down by almost a 

pnint 

Worries that the wholesale losses 
by the Conservatives in the UK 
local elections would trigger a big 
slide in the market proved 
unfounded. With no sign of any 
institutional selling, the FT-SE 100 
began the session around five 
points higher and gradually 
improved to stand more than 15 


Acewort OaaBng Bates 

-M DMtibuu 

Apr 23 

May 16 

Jun 6 

Optica Old— B owl 
M ay 12 

Jun 2 

Jun is 

LsH Des0ngsr 

U« 13 

Jun a 

Jill 17 

Accoirt Dw 

Mey 23 

Jin 13 

Jun 27 

'Now Bara (footings 
burinsss (toys swfcr. 

may take 

ptaca from two 


points ahead minutes before the US 
non-farm payroll number was 
announced. 

The disclosure of an increase of 
267,000 in the US employment num- 
bers for April, against an expected 
top figure of 250,000, affected mar- 
kets very quickly. Wall Street came 
in weak and quickly dropped more 
than 30 points on the Dow Jones 
Average, trailing a sickly bond mar- 
ket, as dealers on both sides of the 


Atlantic feared an imminent 
increase in US short term interest 
rates. 

Economists are said to have 
already factored in a further rise in 
US rates but the pace of the expan- 
sion in US jobs was said to have 
provided further evidence of a rap- 
idly growing US economy with obvi- 
ous implications of inflationary 
pressures. 

Although the Fed declined to 
increase rates yesterday observers 
said a rise to 4 per cent and possibly 
to <L25 per cent and possibly a half- 
point rise in the Discount Rate is 
now viewed as almost a certainty 
some time next week and certainly 
before the next Federal Open Mar- 
ket Meeting scheduled for May 17. 

At its worst following the US 
news, the FT-SE 100-index dropped 
through the 3,100 level and showed 


a 13-7 decline at 3,092.2 before 
embarking on a slow but deter- 
mined rfinih hack through 3,100 to 
end the day at 3.106. Turnover in 
the market reached 657 An shares. 

Some marketmakers were heart- 
ened by the equity market's resil- 
ience in the face of the two poten- 
tially depressing factors yesterday 
and forecast a modest technical 
bounce next week. Others, however, 
remain extremely cautious and 
expect further turbulence in inter- 
national bonds, which they said 
would inevitably bring pressure to 
bear on equities. 

The oil sector delivered another 
exceptionally strong performance as 
crude oil prices moved above the 
516 a barrel level and institutions 
responded to BP’S scintillating prof- 
its and dividend news, announced 
on Thursday. 



Equity Shares Traded 

Turnover by voftmw pmBanj. E»cfuding: 
hma-fliarfeot business ond overseas mmouiH 
1.000 




Sails FT GrapNn 


1994 


■ Key Indicators 
Indices and ratios 

FT-SE Mid 250 3771.0 +0.4 

FT-SE -A 350 1579.8 +0.1 

FT-SE-A AU-Share 1572.45 n/c 

FT-SE- A All-Share yield 3.69 (3.69) 

FT Ordinary index 2481.0 -0.9 

FT-SE-A Non Fins p/e 20.43 (20.46) 

FT-SE 100 Fut Jun 3103.0 -2.0 

10 yr Gilt yield a 36 (8.23) 

Long gilt/equity ykJ ratio: 2.30 (2.28) 


EQUITY FUTURES AND OPTIONS TRADING 


VcL 

0003 


ASOAGroupf 
Abbey Natforatif 
Albeit Fitter 
AfccHycwt 
Angfcm Water 
Argos 

Argyfl Grt*t>+ 
AqoWIgglmt 
Assoc. DHL Food»t 
Axsoc. Brit Ports 
BAAf 

BXThd^t 

BET 

BtCC 

socrt 1 

BPt 

era Ms. 

Bit 

BTffWaW 

Brat 

Bonk of Scodandt 

Baripnrt 

Baaat 

Bku Cl-det 

Soaker 

Baotst 
Botraurt 
Bril Asraapacst 
Bndafi Ahwayof 
British Oast 

Broun Land 
British Stestf 
Burt 

Bumah Csetnrit 
Burton 

CJttelWtat 


Criartimup 
CrassWjJ- 

Cation Ccmrmt 

- c ” teVI *H. 

* * Conan. Untcnf 

• f': Contain 

--- CoWTBUkJSt 

. ■ D**r 

DeLaftwt 
Dboons 
Eastern Bed. 

East IMand BacL 

Eng China Clays 

Ertisrprtss Oif 

EudumeilMa 

FW 

Hum 

Foreran *CoL IT. 
ftrwt 

Gun. Aoddemt 
General Bettf 
□taut 


Oarin g Pay’s 
pdee ctenps 


Gronodet 
Grand Matt 
GUSt 
GBEf 
OKN 

durmast 
HSBC (tip shaft 
Hsmwnon 


— Harrisons Onfield 
Hays 
Hfladoam 
M 
IClt 

■nchcipat 
Johnson Mautey 
NngSahc- t 
Kwh Saw 
LodtxoKet 
Laid Securest 

I n ports 

Lagte ft Gwwert 
Unfits Abbey 
Uoyds Bank) 

LASMO 
London EtocL 

bud on Ming vgMaa hr a aUadka or M|ar i 
gl gaa riBgn or ims an rewM haw. |MMm an FF4 


13X00 

HA. 

-h 

Lanrtw 

1^00 

140 

+3 

2 . 20 a 

416 

-3 

Lucas 

1J3SMJ 

204 1 ] 

1J00 

57 

-1 

MEPCf 

813 

465 

-1 

1/00 

572 

-6 

MF1 

00 

160*2 


620 

452 

-10 





283 

387 


Mftta S Spencarf 

3300 

423*2 

-6*2 

6000 

248>2 

-3 

Mldtarts EtocL 

114 

678 

-6 

6/00 

303 

-4 

Morrtma (Win) 

188 

121*2 


080 

BUS 

-3 

MfCt 

4,400 

220 

-4 

43 

272 


NolWast Bankf 

2JB00 

445 

-1 

832 

986 

<2 

National Pmuart 

X200 

419 

-4 

6600 

447 


Nsst 

1JOO 

£38 

+1 

6500 

128*2 

«*2 

Nwm VMM Wasrf 

293 

478 

-3 

413 

480 

+B 

Montiam Bed. 

22 

611 

-10 

810 

666 

-11 


286 

224 

+3 

26000 

403 

«*2 

Nonreb 

31 

620 

■a 

1.000 

334 

-3 

Posrsont 

1,700 

032 

-a 

6800 

3/2 

-1*2 

paot 

391 

896 

-4 

2.100 

254 

-2*2 

F*Bdngccn 

3jBO0 

IQS 

+4 

6800 

ISO 

381 >2 
IBS 

+2*2 

-O 

PomeiQant 

AuMniUt 

3,700 

4.100 

470 

304 

-16 

+1 

6200 

518 

+7 

RMCt 

420 

894 

-a 


568 

-2 

mzt 

2^00 

645 

+T 

7600 

2tlffl 

* 

Raol 

13 

230 


ITS 

41 r 


RankOwt- 
RscfoC & Cotinwit 

1.100 

417 

-6 

6400 

582 

+3 

640 

078 


340 

461 

-8 

Ffcdntft 

1,100 

323 

-T 

1,700 

480 


Retd tout 

ns 

B44 

-l 

2^00 

tuna 

«ia 

283*2 

-9 

<2*2 

Ftontufclt 

RouMf 

1/400 

xioo 

230 

487 

-t 

-13 

xw 

395 

-8 

Hals Royeat 

5£00 

193*2 

-1 

6700 

151*4 

-*« 

Rt4 BkScotiindt 
Royal In— ««4 

1.500 

407 

+7 

Z7B 

178 

-1 

2JB00 

260 

+9 

703 

605 

tS 


4.300 

394 


nxxn 

55*2 



4 

1278 


6100 

438 

-2 

Scottiah ANsw.f 

835 

521 

-2 

1.000 

+86 

+6 

Scol Hydro-QncL 

443 

333 

-3 

12 

340 


3cottWi Poworf 

2.000 

347 

+1 

2,000 

331*2 

-7*2 

Eo-tit 

12,000 

126 

+4*2 

1500 

914 

+0 

IS8SS 

2jtOO 

202 

+S 

6200 

229 

-4 

516 

310 

-7 

1500 

575 

+15 

Sarem Tmtif 

1200 

482 

-1 

4.800 

2/6 

-1 

8hs4 TYmpont 

XOOO 

732 

+11 

1500 

549 

-12 

fitebst 

1300 

582 

-« 

128 

454 

+1 

Stoutei Este 
8Mlh{WJL)A 

588 

£53 

-a 

93 

906 


1JM 

516 

+10 

2.400 

202 

+0 

fintidi A Naphawf 

7,100 

2.700 

147*2 

+2*1 

784 

585 


3mW Bo+diomt 

364 

-6 

291 

547 

-10 

SmM BMCham Utat 

X40O 

356 

-10 

054 

481 

+5 

SnNhskrta. 

205 

500 


2JOO 

431 

♦» 

Soudtoui BsoLf 

IBS 

568 

-8 

390 

450 

-10 

Soufli MWss Boot 

40 

628 

-8 

202 

204 


South Utoat WMor 

285 

493 

-4 

i/xn 

146 


SouSiWbsl BecL 

48 

578 

-B 

6400 

140% 

-h 

Souham Water 

351 

401 


2500 

228 

-2 

Standard CawtoLt 

7BO 

238 

-at* 

1.400 

561 

+1 

StorahousB 

MOO 

214 

n 

3^00 

302 

+3*2 

Sun ADsncot 

X700 

333 

+6 

6200 

563 

-4 

TIN 

896 

246 

■9 

139 

372 

-0 

HOtaRt 

700 

398 

-7 

1.400 

545 

-1 

1S8t 

1800 

214 

13 

2.800 

467 

+1 

Ttenindt 

2A00 

166*2 

-1*, 

040 

568 

+1 

TMb8L)4b 

Taylor Wtoodrow 

1500 

438 


2JOO 

186 

-3 

648 

160 

+7 

1/200 

624 

♦7 

Tsscot 

3,600 

222*2 

-1 

6000 

481*1 


Thsmss Water) 

1.000 

468 

-7 


700 

+2 

Thom Britt 

1A00 

1138 

♦a 

216 

405 


Tbntidnst 

2.400 

242 

-3 

6700 

268*2 


Tlsatig* Housti 

2JTO 

102 

-1*2 

671 

190 

-8 

Unlgata. 

MOO 

402 

HI 

428 

3D4 

-1 

Urttovort 

IjOOO 

1074 

HI 

2,700 

178 

+8 

Uhitad BfsotiWt 

897 

3» 

-1 

2W 

364 

+1 

UM. ttemptiiMrs 

484 

636 

+3 

1.600 

834 

♦4 

VOdalorwt 

2J00 

545 

-6 

843 

548 

♦10 

V/urtXMB tSCft 

532 

m 

♦15 

405 

603 

-8 

W«Ocom«t 

2JU0 

588 

+3 

968 

501 

-1 

Wakdi Water 

203 

003 

-1 

271 

575 

+6 

Waasm Water 

42 

996 

+a 

1,800 

187 

+3 

Wttidjraudt 

315 

558 

-6 

1J00 

655 


WESams Mdgo.t 

768 

381 


233 

780 

-8 

VmsComxai 

1^00 

236 

+8 

M 

444 

+3 


uno 

187 

-4 

43S 

370 

-8 

Wotes*vf 

1,400 

638 

-8 

4500 

590 

+11 

YorWvhta Etect 

128 

556 

-7 

6900 

1«7'i 

-2*2 

VcricsSaro WOTsr 

368 

476 

-4 

158 

556 

-7 

ZMocat 

2.DOO 

706 

+8 


Stock index futures recorded 
a volatile session as dealers 
fought off worries over political 
uncertainty in the UK and fears 
of a rise in US Interest 
rates.' 

The June contract on the 
FT-SE 100 finished at 3,103 
having In the course of the 
session been at both a 


premium and a substantial 
discount to cash. Volume was 
17,876 contracts. 

In the traded options, 
turnover fell back to 29,439 
contracts of which 11,164 was 
dealt in the FT-SE 100 volume 
and 3,908 in the Euro FT-SE 
option. Abbey National was 
the busiest stock option. 


■ FT-SE 100 INDEX FUTURES (UFFtJ £25 per (ul index point 


IAPT) 



Opan 

Settprioa 

Qtango 

Hflh 

Low 

Esl m 

Open tnL 

Jun 

3104.0 

3103.0 

-2J0 

3121.0 

3080.0 

17878 

53128 

Sep 

3126.0 

3120.0 

-2. 5 

3132.0 

312&0 

101 

821 

Doc 

3137.0 

3132.0 

-1.0 

3137.0 

3137.0 

50 

211 


■ FT-SE MID 330 INDEX FUTURES (UFFE) CIO per Ul Index point 


Jun 


3775.0 37B5J) 


3775.0 37750 


55 


38+3 


■ FT-SE MH3 260 MDEX FUTURES (OMLX) CIO per (Ul Index point 

Jui I 37650 - - I I ST 

AJ opan ktftnst Sgum am tor previous day. f Bad vokote shorn. 

■ FT-SE 100 MDEX OPTION (UFFE) f3106) £10 per (ul Index point 


3960 
C P 


3000 
C P 


3060 
C P 


3100 
C P 


SI so 
C P 


3200 
C P 


3260 
C P 


3300 
C P 


May IBHj 44 ttiPz 9 73^ 19>* 40 37*2 18*2 65*2 8 1M>2 Zh 15812 1 208*2 

Jun 173*2 22*2135*2 35 IDS 49 72 71 49 97 29*2 129 17 167 10 210*2 

JUf in 3512 157 49 12312 66 95 87 71 113*2 51 144 3B»2 180 23 219 

Aug 214 4fllj 178 B2>2 M5>2 82 118 103 01*2 128^2 70 157 62 100>2 39 2Z74 

Deef 238 11212 176 15012 129 202 87 261*2 

Cab 0JEB Pub 5j04l 

■ EURO STYLE FT-SE 100 MPBt OPTION (LUTE) 010 per hM Index point 

2925 2975 3026 3075 3125 3176 3225 3275 

HOT 182*2 3 135*2 6 8112 13 53*2 26 27 49 11 82*2 4 125*2 1 171*2 

Jun 193*21812 15326117 39*2 8512 57*2 60 82 40 112 25*2 146*2 15 18S 
M 211*2 28 139*2 55 83 98 44 158 

Sap 24212 51*2 174*281*2 118*2 123 75 178 

Dacf 283*2 83 217’j 114 162 155*2 ' 110 206 

Cats UM Pub 2,118 ‘ Un dtUftofl Mo wto. ftwfem dawn are band an srifamt prion, 
t Long dated mpky noaBn 

■ EURO STYLE FT-SE MD 200 INDEX OPTION (OMLX) £10 per ftjfl Index point 


3860 


3000 


3960 


3760 3800 

May 80 35 22 

Crib 0 Mi 0 SMhmoit prim ml wkmss m M» d 430pm. 


4000 


4000 


4100 


FT-SE-A INDICES - LEADERS 8, LAGGARDS 


tausrias . 


Paroentage changes since December 31 1S93 based on Friday May 8 1994 

RaMm, Oamol *a.H 

PgawarOnoda . . -100 

FT-SE 100 i— -0.14 

Pmpoty -9 jS3 


EaOtaaartnp, IhUdas tlUB 

CM Bqftntol & Prad +1142 

ftlttb, Paper +1113 

Emptoedng <053 

Cltdi +149 

Latova S HoMt +764 

Hoard n rvw* " 1 . +303 

FT-SE SKME*s>K IT +5.00 

W, Integrated +955 

EdteMM +455 

Mods +4.17 

FT-SE SmB* +187 

Ban MmhcUm +175 

DbHwkn +185 

OtortMUi +168 

P u M i U S Constmcdsn — +133 
FT-SE Md 250 « IT +029 


-9« 
•054 
-069 
■971 

Becaude 3 Bee bjjut — -1X0 

Senteaa -1J7 

IMP) Cara -102 

SpUb, mm & Odea — -148 

Food Uanubctuen -152 

.431 
, 475 
. -477 

Rntabeo, FOod -433 

.-334 


FT - SE. Actuaries Share indices 



'he UK Sene 



wye 

Dqrir 

Cf10B% 

URS 

HV4 

toy3 

Vto 

*t» 

Mr. 

yU% 

Eao 

|KM 

BE 

rrto 

Xda« 

l« 

. Trial 
(ton 

H0 

— 1984 

LOW 

■ 

Hflh 

5teca Computes 

LOW 

FT-SE 100 

3WJ8JJ 


31000 

30705 

31000 

2793J 

331 

041 

1072 

BLOB 

115382 


2/2 

30305 

4/5 

38203 

2/2/94 

9900 

23/7/B4 

FT-SE Hri 250 

37710 



37705 

3757.7 

37755 

31005 

325 

5,45 

2331 


138373 

4SU 

3/2 

37525 

31/3 

41 925 

3/2/94 

13704 

21/1/BB 

FT-SE U4 250 a hN Tmtx 

37882 



3787.7 

37755 

3791JI 

31305 

138 

558 

2058 

3042 

139004 

41607 

ion 

37737 

a/4 

41807 

19/1/94 

13783 

21/U88 

FT-S-A 350 

15738 



15707 

1564.7 

15775 

1302J 

375 

019 

1040 

1750 

120057 

17708 

2/2 

15617 

4/5 

17703 

2/ZA4 

6845 

14/1/88 

FT-SE StertCap 

184053 

-41 

1941^8 

104ZO6 

194028 

158039 

389 

4.13 

2074 

1O10 

148031 

200488 

4/2 

1074.73 

4/1 

209458 

4/2/34 

138970 

31/12A2 

FT-SE amUm n to lhab 

181042 

-41 

192131 

192051 

192182 

159048 

3JB 

<57 

2727 

1024 

147399 

286072 

VI 

162029 

4/1 

206032 

4/2/94 

138379 

31/1232 


FT-SE-A ALL-SHARE 


157143 


157245 155159 157035 137945 358 834 1936 17.11 1218.18 17*4.11 20 156858 415 17B4.11 20M BUB 13/1204 


FT-SE Actuaries All-Share 

Dtfs 
Kry 8 tfiflaS 


Uqr 5 May 4 Mb 3 


Year 

«90 


Ul Earn. 

iw* mo* 


WE 

rasa 


Xd bi|. TaM 
ytt Rabn 


Hdi 


-1994 


Low 


Stoca Can 


Mgh 


Low 


10 HNBUL EXTSACn0bC18) 
12 Extradtre WusMea^ 

15 01, Hapdadp) 

18 04 Emtobon & Prodfll) 


Z70733 +1J» 2681^4 2818.40 2BZ154 2114.00 
3885.04 +0J 387164 387180 3658.44 2891.30 
2SS5.15 +17 2624.71 254137 256188 2041.60 
200022 +06 198130 196370 1967.49 192740 


144 455 2751 3155 1073.16 
384 5.09 2454 42.75 105BJB 410755 
147 477 26.10 3258 107359 2086.18 
338 154 SILOOt 1138 114650 209953 


27/4 
2/2 370660 
K 23463* 
27/4 176850 


31/3 278954 2TM04 

Ztn. 410755 2/2/94 

30/3 2855.15 6W94 

31/3 3944.10 OmO 


99620 19/2/96 
190050 31/12/85 
20W88 
28/7/88 


20 GE* MANUFACTURERS^ 209759 -at 210048 209559 211555 174150 350 455 2854 23.14 

21 BdUng A CmtlWihnpl) 1321-17 -02 1324.07 131427 130654 106850 252 356 3472 1227 

22 Bddhg Hdb B MandB{»| 204558 -05 2066.43 205520 207859 164350 3.48 369 3451 2656 

23 Ow*A(21J 2525.48 -07 254253 253357 2549.10 211850 384 452 2771 2659 

24 Otartfed kutea«da(ie 200854 — 209853 208453 211555 181450 458 4.42 2658 3055 

25 Ebcfionfc A Sett Eqtdpp^ 206559 +15 204149 204359 305570 1911.00 356 676 1052 12.72 

26 EMpnaertaon-l) 1983.42 -05 196850 198694 198855 148450 251 378 3252 15.77 

27 EaglaeartnB. VWUag(12) 246625 +4L7 244644 24*3-95 246646 176080 425 614 6579 3642 

28 fflnBW. Paper & Pckg(271 . 2321.15 -67 294157 296456 299620 232680 254 458 24.78 2659 

29 renew A Appweeu) 180359 -05 181158 1807.72 182603 181640 356 558 2358 20L45 


106152 
102152 156010 
96150 239352 
110672 2S62S 
1054.78 223157 
0 8 8 S 5 want 
110856 2011.17 
117048 261 871 
113450 304551 
100777 202456 


2/2 292677 
8/2 130415 
24/1 20*658 
27/4 20654 
2/2 200357 
4/2 198043 
2/2 180607 
2/2 212622 
18/3 2921.19 
4/2 175352 



10/11/87 
14/1/86 
97356 14/1/88 
24/900 


30 CORUHEB G00D5(9S) 

31 BnweriBS(17) 

32 Sorts. Man A OdaodQ 

33 Ftad tOMsamnd^ 

34 HMHhotd Qoada(l3) 

36 HeaWi Care(20) 

37 mannac8u(lnts(i1) 

38 Tubacoad] 


40 setwEspa) 2045.17 

41 DbMiriarapi) 306858 

42 Lawn & Hobfa(23J 223475 

43 Mada(39) 306350 

44 Retabra, Food(17) 163027 

45 flaatas, 6enard(44) 176091 

48 Support SmriCK(4Q 166624 

49 Transpatne M8672 

51 OBiar Sanfces A BusbassflO) 122638 


-03 205055 203620 204655 11 
+66 3051.60 304677 309680 258350 
-61 223554 222957 224558 16B450 
-68 308856 3001.80 3118.43 223350 
-63 16*173 158681 138057 189450 
-61 178630 174950 175610 147750 
-62 166959 188114 187040 140950 
-05 250621 249552 251642 1961.10 
+64 1217.43 122550 120458 122678 


60 UTUfESOS) 

62 Bubttypn 
64 Gaa Dboauflai(2) 

66 rebanwunlcriftiBH) 

68 WdHt13) 


220258 -65 221456 219666 220138 205630 
207460 -15 2101^7 207557 209150 167250 
189743 +65 188144 1871.10 188&27 200270 
196751 -64 197630 1957^2 190052 187250 
16S351 >67 1685.13 107026 165841 171850 


255 554 21^0 1344 96853 220777 
286 870 2204 31.80 106022 331633 
320 420 2743 1843 1087.12 236052 
211 477 2441 3359 10S5.83 3343.11 
96959 101429 
92207 191687 
251 894 1659 958 99890 1KB53 
359 407 ?fM W 1814 
438 228 a050r 551 103448 

454 751 1860 860 
3491144 1049 1885 


354 923 1274 12(0 
255 557 2246 648 


19/1 201451 
2/2 295758 
17/2 216152 
17/2 29*453 
19/1 151144 
4/1 170614 
2/2 182261 
3/2 249872 
10/2 113062 


8/4 220777 19/1/04 
31/3 331959 2/2/94 

4/1 230052 T7/2/B4 
4/1 3349.11 17/2/94 
2S/4 223850 28/1/93 
24/3 193424 2WI2/93 
8/4 186843 2/2/94 

6/5 2B089B 30IU 
21/4 2*5850 18/7/87 



833JB 278233 20 219858 4/5 278253 2/2*94 80250 3/10/86 

83740 2BTS.12 20 307450 SS 2019.12 2/2/94 9B830 7/1/91 

Ul t 8 0.00 83656 238077 7 ft 1071.10 VS 237050 16/12/B3 98450 SrtaBB 

441 615 1896 009 81836 24866 20 196752 VS 246170 29h2A3 90250 3/10/88 

8581858 755 3.48 78552 212679 30 18SM1 fi/S 212870 3/2/84 92470 US/90 


170613 -0.1 170753 189550 170750 150652 357 554 2053 1649 118437 101058 2/2 168752 31/3 187038 2/2/94 0340 13/12/74 


70 FMUMOALStMS) 

71 BartdlO) 

73 tonocedt) 

74 Ute ABwancan 

75 MantoU Barttfl 
77 Oaar FbanedCM) 


217359 

272074 

1320.43 

238851 

2929.6 

189453 

1622.19 


+05 216258 
+05 270605 
+15 130879 
+05 2377.47 
+1.4 288812 
+84 188758 
-83 162843 


212898 

282612 

123352 

237121 

2S8851 

1891.92 

162051 


214858 

287455 

128157 

236754 

2947.73 

189036 

163646 


188840 

228610 

128350 

246890 

2402.10 
141610 

1204.10 


4.12 751 
358 7A1 
4541051 
753 
3581842 
350 859 
3.77 352 


1873 WT 
1601 5688 
1050 27.84 

1M7 earn 

11.17 2326 
1824 1955 
3252 8.21 


84639 

60452 

non 

60874 

86557 

99452 

90828 


2737.13 

38DI55 

190351 

202157 

376159 

227035 

199658 


4/2 212258 
4/2 282612 
24/1 129157 
19/1 236754 
2/2 282354 
4/2 188659 
4/3 155671 



80 PNESnteiT mBI8(t22) 

E33 

282008 281 656 283030 2231 JO 316 

150 5015 

1084 94320 

318431 

2/2 278132 

31/3 318451 

2/2/94 

977J0 14/1/86 

09 FT-SM Ml-stunesse 

157345 

1672.48 

155050 157005 1379.45 359 

004 1056 

17.71 1Z1016 

1784.11 

2/2 1GBOEB 

4/5 1704.11 

2/2/94 

0L82 13/12/74 

■ Hourly movements 

Open 

SlOO 

KUO 

11J» 

1200 

1900 

MM 

1SL00 

1910 

Msh/riay 

Low/d sy 

FT-SE 100 

FT-SE Md 250 

FT-SE-A 350 

31109 

3772.8 

1581.9 

31103 

3770.1 

1S82J) 

3107.0 
'• 3774^ 
1500.6 

3117J 

37706 

1584.7 

31195 

378ai 

15890 

31204 

37BOO 

15803 

30909 

3775.1 

15775 

30992 

37Sai 

15753 

31096 
3771 J) 
1560.0 

3121.0 

37803 

15697 

3032.3 
3767-8 

1574.4 


Tima o< FT-SE lOOHQt ljMpm Loan 2.4Qon 

■ FT-SE Actuaries 350 Industry baskets 

Opan 600 1050 


1150 


1200 


1350 


1450 


1550 


10.10 


Ckrta Prwioua Change 


BkJg ACnatrcn 
Phormaoniticls 
Waur 
Banka 

Etmdyi»cHonnr agpud 


12694 

1271J 

1269.1 

12690 

12690 

12690 

1263/1 

12813 

12695 

1262.0 

1264.6 

-1.7 

2749A 

2761.4 

27544 

27696 

2780.1 

27697 

27391 

27291 

2737.7 

27403 

27654 

-151 

1S59S 

16014 

16598 

1681.7 

16695 

16890 

1662J) 

1E54J2 

16495 

1840.1 

1681.0 

-113 


27490 

27491 

2770.1 

27692 

27799 

27399 

27391 

27513 

27599 

27399 

+150 




BOM 

BOH 




Base 





Eoultv Mctton or Droup dots 


&P*By Motto) .VJKBSU 

date 

value Eouttv section or orauo 

data vstos 


ft- 3E Tot* nma nacu 31/12/w k 

FT-SE SmaACap 31rt2«2 130679 

FT-SE 9ndCap « b* Trb 31/12/92 1383 l79 

FT-SE MM 250 31A2/B5 1412.60 

Th* FT-SE KKL Hw FT-SE ud 250 and llw FT-SE A 
Fhanctd T*nae Umead. bodi n conMxaton wdi dw 
nwudk d Mm Umtad 1994. Oltw FWnod Ha 
Umted. Andtor. Th+WM Owrpea*. T T 
■anw wtaW (b, OS Manmn* tape 


FT-SE MM 2S0 K by Tnada 31/12/85 141250 Waiw 
FT-SE-A 350 31 rtSMS 632.94 Non-Flnsndab 

FT-SE 100 31/12/83 100000 FT-SE-A AB-Sham 

goenteby 31/12/90 100050 M Other 31/12^95 100000 

antes 380 Mbea an anvM by ttw Lendep 8W* EteWfla end aw FT-SE AeuariM At-9hen lade, end flw FT-8E 9me*Cb» *"4“ *• wnpoed by The 
kWMto 01 Aeawee aid «w Feeuty tt Mumtm under ■ aomtad m er gnuid nan. o Hw MameaM e*a* Bahenge of aw iwwd Kngdam and 


29712/08 100050 UK Gfe Mtew 
1O/4/02 10050 inckK-Unked 
10/4/62 10050 Oeba and Loans 


31/12/75 100.00 
30/4/82 100.00 
31/12/77 10050 


i {*u PM tar mm 1711, Stead* Hort-W Sb- Tito taridtoeaPb- 


r GNAHOEBc AHmaNSi Hem Oomb Stndta Coe Uu. n« <T1L Menyrtam pq. 


Shell and 
BP firm on 
oil price 


Leading oil stocks showed the 
way forward yesterday ahead 
of first quarter figures from 
Shell Transport and in 
response to an unexpected 
surge In the price of Brent 
crude. 

The underlying oil price for 
May jumped a dollar to around 
$16.60 reflecting worries over 
fighting in Yemen and a raised 
forecast of world oil demand 
from the International Energy 
Agency- Shell gained 11 to 732p 
and BP improved 3*A at 408p on 
exceptionally high turnover of 
25m shares. 

BP was further helped by an 
improved recommendation 
from Mr John Toalster of 
SGST, a long-time seller of the 
stock who moved his stance 
from “weak hold” to “hold”. 
Mr Toalster lifted his 1996 
earnings estimate to £2.lbn 
from about £1.5bn previously. 
BP'S lead gave hope for Shell's 
first quarter figures on 
Wednesday. Analysts are 
expecting the company to 
announce a replacement cost 
figure of between £800m and 
£990m. 

Sears sought 

There was big turnover in 
Sears, with dealers reporting 
James Capel positive and 
upgrading its forecast by £30m 
to £198m, easily the top of the 
market range. The shares 
gained 4'A to 126p in volume of 
12m. Last week the stores 
group reported a return to 
profits, recording £138.3m 
against a £47.8m loss previ- 
ously. 

Shares in Thorn EMI reacted 
cautiously to a press report 
that the MMC inquiry into 
compact disc prices had found 
no evidence of price-rigging by 
the manufacturers. The official 
enquiry is one of the few 
remaining clouds at present 
hanging over the stock - the 
others, including inquiries in 
the US, also into CDs, and the 
company's Re nt-a- Centre busi- 
ness have faded. If yesterday's 
reports on the MMC move 
prove true, they are 
likely to boost sentiment. 


The shares added 3 to 1166p. 

Electrical retailer Dixons 
rounded off a hectic week 
which saw the stock receive 
three profit downgrades and 
two upgrades as the market 
remained deeply divided over 
the company's prospects. Yes- 
terday it was the turn of Leh- 
man Brothers to shift its fore- 
casts and stance, upgrading its 
1994-95 prediction from £80m to 
£85m and moving the stock 
from a hold to buy. The broker 
said the stock was only on a 
market rating and deserved a 
higher one. 

There was further specula- 
tion in the market that Grand 
Metropolitan would use its 
results next week to announce 
its divestment from its Inntre- 
preneur pubs business. How- 
ever, the old rumour failed to 
generate much excitement in 
the shares, which ended the 
day a penny firmer at 467p. 

Confirmation of a FFr6bn 
rights issue from Euro Disney 
sent the shares down 15 to 
363p. 

Shares In GEN jumped 7 to 
624p after SG Warburg, the 
company’s broker, issued a buy 
recommendation and made its 
first profits forecast since the 
group’s recent acquisition of 
the Westland helicopter com- 
pany. 

Warburg predicted profits of 
£165m this year and £220m in 
1995 and said the new forecast 
reflected the consolidation of 
Westland. BBA Group moved 5 
ahead to 222p in sympathy 
with GKN with sentiment fur- 
ther boosted by news of an 
increase in UK new car regis- 
trations. 

The Unproved new car fig- 
ures also helped Inchcape, a 
leading car distributor, where 
the shares gained 10 to 548p. 
Engineering company EMI 
advanced 4 to 364p, following a 
favourable statement at the 
company's annual meeting. 

Enterprise Oil bounced 10 to 
4Slp on hopes that a rival 
group, Atlantic Richfield, 
would launch a full-scale bid 
for Lasmo, down 2Vi at 147%p. 

Chemicals group Conrtaulds 
fell 12 to 549p as Klelnwort 
Benson ‘re-emphasised’ its sell 
stance on the stock. Analyst 
Mr Jeremy Chantry said the 
company’s shares had outper- 
formed the market strongly 
and there were concerns over 
rising costs of raw materials. 
However, he maintained his 
forecasts for the profit for the 


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4. 


ARTAL GROUPS. A. 

39, boobvanl HojJ 
L-244) LUXEMBOURG 

The Anoml General Meeting ofSharehc+Jm 

of ARTAL GROUP SA, win be Wd a *c 
head office of Banque de l ai afnri wwg S A, 
14, boulevad Royal, on 
Tuesday May 17th 19*4 a* 1600 pJD. 

in order to ductus the following mtfim: 

AGENDA 

ReponofiheBoiinlof Diiccaon for die 
period ended December 31a 1993. 
Report of die In depe nde nt Auditor for 
die period axled December 31s 1993. 
Af^roval t/ the A nn ual Actmna ■> at 
December J Is 1993. 

Aliocriion of Results u at December 
3 Ih 1993. 

Discharge b the tfitccbn and B Ae 
stHmmy mdilon. 

6. Secriana. 

7. MiscoUaacaB. 

(loMcn of bearer share certificates have to 
deposit dn-ir stares ao l*++ dan May 13lh 
1 994 at Bauxiuede LuicsbourgS A. ora any 
other recognised fomi 

The board of Directors 


3. 


THERE'S A HANGING 

EVERY MONTH 
Great Art demands the 
areatest space: thats 


wfty on the first Saturday 
oT each month the Ft 
publishes a full colour Art 
section devoted to art 

The 

byaaest. 

160 countries, 
iinq affluent 
tors 
..iaini 

_ . with 

ptional and effe 
rtisina opportuo 
» of aaoimay 
ers have t?oii 
paintings or antiqui 

(FT t fie^r®S0§rllfl2) 

formav In f o rm ation 
about a qvarHatpg please 

Ganevle ve M gr^nghl (071) 


is read 

oy an, estimated 1 million 
people in ,160 
reaching £ 
international invesi 
and collectors: providing 
the. Art world 
ional and i 



Jarr^s^Burtqn 


873 4677 


The Financial Times - 
Putting jne^egrour back 







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year to March 1994 at £170m. 

Zeneca rose 8 to 705p after 
the chairman told the annual 
shareholders' meeting that per- 
formance to date was in line 
with expectations. 

A positive agm statement 
and similarly good investment 
note from Henderson Cros- 
thwaite, the stockbroker, 
helped Hillsdown, the food 
manufacturing group, climb 9 
to I76p. Chairman Sir John 
Nott said that the outlook was 
encouraging and the company 
was confident about prospects 
for the year. 

Henderson was apparently 
responding to a bullish trading 
statement earlier this week 
from Bernard Matthews, the 
poultry producer, although 
other analysts said only a 
small part of Hills down's prof- 
its were poultry-related. Bern- 
ard Matthews dipped a penny 
to 106 p. 

Turnover in Glenchewton. 
the toys and houseware group, 
jumped to 11.03m amid specu- 
lation that Wilton Group, a 34 
per cent stake holder, had 
reduced its holding. Shares in 
Glenchewton closed 
unchanged at 42p, while USM- 
listed Wilton also remained 
unchanged at 3'/*p. 

British Airways remained in 
the doldrums after Thursday's 
disappointing passenger traffic 
figures for the month of April 
The shares eased 3 to 416p. 

Talk of a large US seller of 
PcvwerGen saw the shares slide 
back 16 to 470p on turnover of 
3.71m. National Power slipped 4 
to 4I9p. 

Electronics group Psion 
advanced following remarks 
from the chairman at the agm. 
Sales in the first four months 
were said to be showing an 
advance of over 50 per cent 
across the product range com- 
pared to the equivalent period 
last year. The shares gained 12 
to 296p. 

Renters Holdings remained 
weak following the sale of 
stock by the Abu Dhabi Invest- 
ment Authority. After the mar- 
ket closed the company 
announced that the authority 
now holds just over 64m shares 
in the company or some 4 per 
cent 

Biotrace, the microbiological 
testing company, jumped 27 to 
152p after a positive announce- 
ment on its marketing agree- 
ment with Ecolab, the US man- 
ufacturer of sanitising 
equipment 


Mar Apr 


May 

~ 1 

1994 




FT-SE 100 Index 



Closing Index for May B .. 

....3106.0 

Change over week .. 



‘ 

-19.3 



...3106.0 



... 3070.5 

May 3 


... 3100.0 

High* 


....3133.0 

Low* 


....3056.2 

‘imra-day high and km for week 


■ CHIEF PRICE CHANGES 

YESTERDAY 




London (Pence) 




Rises 




Biotrace 

152 

+ 

17 

Chiflington 

52 


5 

Compass 

336 

+ 

16 

Dale Electric 

70 

+ 

4 

Drew Scientific 

60 

+ 

6 

Eurothemn 

4-14 

+ 

17 

Ha den MacLellan 

76 

+ 

3 

Hillsdown 

176 

* 

9 

Ktemwort Benson 

479 

+ 

21 

Northern Leisure 

50 

+ 

5 

P&P 

73 

+ 

4 

Psion 

298 

+ 

12 

Spandex 

643 

+ 

43 

Taylor Woodrow 

159 

+ 

7 

Tottenham Hotspur 

93 

+ 

6 

Wensum 

54 

+ 

3 

Falls 




Betterware 

12B 

- 

5 

Euro Disney 

363 

- 

15 

Forward Group 

260 

- 

7 

Lloyd Thompson 

263 

- 

14 

PowerGen 

470 

- 

16 

Reuters 

487 


13 

NEW HIGHS AND 

LOWS FOR 1994 


NEW H1QKS {39). 

BID UMNO 6 CNSraN 0 Snaco. Sparta*. 
BLDG MAILS * MCHTS (2) Johroion. Russell 
(AX DISTRIBUTORS (1) Fitter Prat, 
DIVERSIFIED MDL8 (I) Wassail ELECTHNC 8 
ELECT EQUP M ASEA V, Euotham. Psow 
Systems, pro, BWMEEHING (E) END. 
VEMCLE3 (1) Awn RuMwr. EXTRACTIVE DOS 
fl) Radwood. INSURANCE (I) Marrii 8 
McLennan. INVESTMENT TRUSTS (4| 
■MWIMENTCOMPAMES (1) JF Japan 0IC 
Fd. LEISURE A HOTELS [1| RnmsdMTs W. 00. 
EXPLORATION A PRO} (1) Culm. OIL, 
INTEORATED tt FtoBOfina. Total OTHER 
Sims * BU8N8 (1) Chtenguxi. PRTNO. 
PAPER A PACKO (1) WVnMtom Press, 
PROPERTY (I) Sudani Ip. SUPPORT SOWS 
(3) BnxM Santos. Hawtel WMng. Sage. 
TEXTILES A APPAREL (1) VVenun. 
TRANSPORT (1| Goode Omani AMERICANS 
tt SOUTH AFRICANS (2} 

NEW LOWS (12BJ. 

CULTS (48) BANKS M Anglo Iren. Berk o4 
Scotland BUpc Pit. Da 41»pc PI. SUndnn) 
cmd 7Upc Pf. SLOO MAILS A MCHTS m 
CHEMICALS (1) Worm Storeys. DIVERSIFIED 
WOOLS (3) B. FL Wap. BTR Nytox. Wnums Pit, 
B-ECTRK3TY fl) PowerGen. ELECTHNC A 
B£CT BQUP (1) Tdanmte, ENOMEERING ra 
Dobson Ftak. Hunting Ptt. PoMrectesn. 
IMmskm, ENQ, VBdCLES (1J Ingram. 
EXTRACTIVE INOS N) FOOO MANUP tt 
Canadnn Ptaa. Nestis'. HEALTH CARE (1) 
kwreare. HOUSEHOLD GOODS (1) SSertn+trt, 
INSURANCE (5) Abuusl Uoyds. FfCG Uoyds in* 
Tte, Lloyd Thomp s on. Lorertos LamOorv 
namaon Tnoe, INVESTMENT TRUSTS 111* 
INVESTMENT CO WANKS (1) Ouangdong Dm 
Fd. UFE ASSURANCE » Uoyds Abbey Life. 
Trans B6pcPf. MERCHANT BANKS (1) Banrigs 
Non- Cun. Prl. OIL EXPLORATION 6 PROD 0 
Antin'*. Emarpuse. OTHER FINANCIAL tt 8WD 
Secs. London FortULng, PHARMACamCALS 
(2) Ceitedl. Prateus kid. PROPERTY P) Afeod 
LonPrf. BOon, Brit Lind Prf, fttal Land VLpc 
Deb 2028, Cdtuy. Land Sec lOpc 2026. Da 
lOpc 3030. Do. Ilfoc Dsb 202/. RETAUJ3IS. 
FOOD (I) M & W, RETAILERS, OENERAL (1) 

OS. SUPPORT SERVSrtl VMusMy. 
TELECOMMUNICATIONS (R Security Senriom. 
TOBACCO (11 BAT tods. IZ’Nsc Ln 20Q3/DB, 
TRANSPORT tt Oukson 09. NFC Var Mg. 
WATER tt Angkan. Thames. AMERICANS (4) 
CANADIANS (2) 


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FINANCIAL TIMES WEEKEND MAY 7/MAY 8 1994 


WORLD STOCK MARKETS 


i 


AMERICA 


Dow follows bonds down on jobs data 


Milan finds new focus 
in screen-based trading 

Andrew Hill says that the market has further to go 


Wall Street 


US stocks suffered a sharp set- 
back yesterday morning after 
the bond market reacted badly 
to news of a surprisingly 
strong increase in employment 
levels last month, writes Frank 
McGurty in New York. 

By 1pm, the Dow Jones 
Industrial Average was 41.84 
lower at 3,664.63, while the 
more broadly based S tandar d 
& Poor's 500 was down 454 at 
446.84 in heavy volume. Declin- 
ing issues swamped advances, 
1.703 to 404. 

In the secondary markets, 
the American SE composite 
was off 3.18 at 438J52, while the 
Nasdaq dropped 834 to 732.16. 

Keenly awaited data on April 
employment conditions proved 
to be a big letdown for inves- 
tors, looking for the Federal 
Reserve to bring to an mud a 


EUROPE 


Bourses responded to the US 
jobs data, but resisted the 
temptation to overreact, writes 
Our M arkets S taff. 

FRANKFURT was Oat on the 
session, and volatile before and 
afterwards as it awaited, then 
digested the US news. The Dax 
index rose 1.18 to 2337.02 on 
the session, a fraction lower on 
the week, after an early high of 
over 2350; it fell to an Ibis- 
indicated 2322.48 before clos- 
ing the afternoon at 233335. 

According to Mr Nigel Lon- 
gley, at Commerzbank, the 
afternoon recovery was driven 
by short covering in bunds. 
However, Daimler dipped after 
hours, by DM930 to DM882 in 
London, on news that it made 
a DM70 per share loss for 1993 
according to the DVFA stan- 
dard accounting formula. 

Turnover fell from DM7.8bn 
to DM7. Ibn. Mannesmann’s 
loss and dividend cut from 
DM6 to DM5 came too late to 
reverse the rise in the shares, 
up DM4.50 to DM465. Luft- 
hansa recovered to DM210 after 
Thursday's profit-taking. 

PARIS resisted a sharp cor- 
rection following the US news 
and the CAC-40 index dosed 
only 4.40 lower at 2,15832, 
barely changed over the week. 

Interest was noted in the ' 


series of interest rate increases 
which began three months ago. 
An hour before the session 
began,the Commerce Depart- 
ment announced that US non- 
form employers took on 267,000 
more workers last month, 
against forecasts of about 
160,000. 

Analysts said that the sharp 
rise suggested an intensifica- 
tion of inflationary pressures 
and raised the likelihood that 
the Fed would now move more 
aggressively to slow the econ- 
omy. Many were convinced 
that the central bank would 
soon boost the Federal Funds 
and discount rates by 60 basis 
points each. 

At the opening the blue 
chips dropped nearly 35 points, 
but recovered to trade about 20 
points down in the first hour. 
Such resilience was encourag- 
ing in view of the rout taking 
place in the bond market 


“Euro stocks”, with attention 
focused on the official opening 
of the Channel tunnel and 
Euro Disney's results, disap- 
pointing as expected. Euro- 
tunnel slipped 90 centimes to 
FFr3885, with investors more 
concerned at present about the 
timing of a rights issue. 

The theme park operator, off 
75 centimes at FFr31.65, noted 
a 12 per cent fall in first half 
turnover to March 1994 and 
said that the effect of its 
restructuring programme 
would not come through until 
the second half of this year. 

UAP slipped FFrl.20 to 
FFr156 in line with the market 
the government announced a 
price of FFr155 per share for 
institutions and said that the 
public offer had been 23 times 
subscribed. 

"MADRID was hit late in the 


But near midday, it became 
apparent that the Fed would 
hold off until Monday at the 
earliest Its restraint blackened 
the already gloomy mood by 
suggesting that the central 

hank ma y not act quickly and 

decisively enough to quell 
inflationary expectations in the 
markets. As a result, bond 
prices dropped further. By mid- 
day, the benchmark 30-year 
security was down over 2 
points, with the yield surging 
to 734 per cent, its highest 
level since the end of 1992. 

With the Treasury market 
extending its losses, stocks 
went into their second slide of 
the session, led by heavy 
equipment manufacturers and 
other issues sensitive to eco- 
nomic trends. 

Caterpillar lost *3% to $108%, 
Deere dropped $3% to $72% and 
International Paper shed $1% 
to S63 1 /,. 


day by the resignation of 
another prominent socialist 
MP, Mr Baltasar Garzon, but 
still managed to close with the 
general index 1.97 higher at 
31832, 23 per cent down an a 
painful week. 

The gains were broadly 
based with banks strong, and 
some of the more volatile con- 
struction stocks even stronger. 
But the US Influenced Repsol 
fell P ta45 t o Pta34.455. 

AMSTERDAM closed slightly 
ahead, although the market 
fell back from a session high of 
414.63 following the US data. 
The AEX Index ended up 0.62 
at 41135, marginally lower on 
the week. 

Royal Dutch and Unilever 
improved, respectively by 
FI 280 and FI 1.00 to FI 20330 
and FI 20430, before first quar- 
ter results due out next week. 


The oil sector was a bright 
spot, partly because civil 
unrest in Yemen raised the 
prospect of higher crude oil 
prices. Arco was given an extra 
boost by an upgrading by Don- 
aldson L ufkin & Jenrette. The 

stock jumped $3%. Mobil 
gained $l’A to $78% and Amoco 
$1% to $56%. 

On the Nasdaq, Ben & 
Jerry’s, the Vermont ice cream 
maker, dropped 51%. or 11 per 
cent, to $15 after reporting that 
frigid winter weather had held 
its first-quarter earnings to 13 
cents a share, after 21 cents a 
year earlier. 

Canada 


Toronto stocks continued to 
fall at midday, pulled lower by 
a weaker bond market after 
the release of the US jobs 
data. 

Almost an sectors were off, 


Hoare Govett expected a 
slight increase in Unilever's 
earnings per share; but 
because of negative sentiment 
which has arisen following the 
so-called “detergents war” with 
Procter & Gamble in Europe, 
the broker mnrntaTnwf its hold 
recommendation. 

MILAN was heartened by 
signs that Mr Silvio Berlusconi 
was nearing agreement with 
the Northern League on a gov- 
ernment team , land the Camit 
index rose 2680, or 33 per cent 
to 800.94, erasing declines suf- 
fered earlier in the week. 

Montedison advanced L54 to 
L1372 while Edison, its subsid- 
iary, was 1376 higher at L9.119 
after announcing improved 
1993 results and plans for a 
share conversion. 

ZURICH caved in under pres- 
sure from US stock and bond 
markets and the SMI index fell 
408 to a year's low of 2.64L4. 
down 33 per cent on the week. 

Banks remained out of 
favour. C S Holding bearers fell 
SFrl5 to SFr584 after Stan- 
dard & Poors, the credit rating 
agency, said that Credit Sui- 
sse’s acquisition of a stake in 
Austria’s Creditanstalt-Bank- 
verein could lead to a deterio- 
ration of the bank's credit 
quality. UBS fell SFr24 to 


except for the precious metals 
group, up 33 per cent, which 
was higher on stronger gold 
prices. The TSE 300 composite 
index was off 25.69 at 4334.12 
in volume of 5231m shares val- 
ued at C$374. 9m. 


Brazil 


Equities had recovered from 
earlier lows by midday, 
although the Bo vespa index 
was still off 4.3 per cent follow- 
ing a wave of selling provoked 
by newspaper reports which 
suggested that the left-wing 
presidential candidate was 
gaining ground in polls ahead 
of this autumn's election. 

The Bovespa index was down 
670 at 13820, after an earlier 
decline of 7.6 per cent. Volume 
was estimated at Crl53bn 
($108m). 

On Thursday the market fell 
8 per cent. 


SFrl,078 and SBC was SFr7 
lower at SFr366. 

Roche continued its decline, 
the certificates losing SFr75 to 
SFr6,450. The shares have 
fallen by 9 per cent since it 
reported a 29 per cent rise in 
net income on April 19. 

ISTANBUL rushed to buy 
state-controlled companies 
after the Turkish parliament 
passed a privatisation law, and 
lifted the composite index by 
133934, or 7.8 per cent to 
17.139.92, up 133 per cent over 
five days after an 18.3 per 
cent fall in the preceding 
week. 

WARSAW fell after a brief 
rebound, the Wig index dosing 
537. L, or 4.7 per cent lower at 
10.852.3 as speculators 
unloaded shares. 


Written and edited by WflDam 
Cochrane, John Pitt and Mchael 
Morgan 


SOUTH AFRICA 

Equities saw strong gains as 
final results came in from the 
country's general election. The 
overall index added 77 or L5 
per cent to 5,308, the indus- 
trial index made 164 or 2.6 per 
cent to 6,513 and the gold 
index added 7 to 1,826. 


T he Milan stock 
exc hang e building may 
now be silent, but the 
Italian stock market Is still in 
full cry. 

Three weeks ago, the 
exchange moved to foil on- 
screen trading, adding to its 
computerised system the 
stocks still traded on the floor 
of the exchange by open out- 
cry. The impact of the change 
should have been limited - 
some 95 per cent of trading 
was already carried out on- 
screen - but the transfer coin- 
cided with the busiest week in 
the history of the exchange. 

On several days in the pre- 
ceding fortnight, more shares 
were traded in Milan than on 
Wall Street. Two days before 
the scheduled changeover, 
record volumes and the sheer 
quantity of small orders pre- 
vented the exchange opening 
for normal business. The “little 
bang" was postponed for 24 
hours while the exchange 
authorities put in place special 
measures to relieve administra- 
tive pressure on the system. 

“It was a development which 
was impossible to predict and 
unique In the history of the 
stock exchange," says Mr Atti- 
lio Ventura, the borsa’s chair - 
man _ 

Mr Ventura need not be 
downcast the market is a vic- 
tim of its own success. Since 
the beginning of the year, the 
Comlt index has risen by 
nearly a quarter. But the real 
surge in Investors' interest 
began when it became dear on 
March 28 that the right-wing 
aiiianw* headed by the media 
ma gnate Mr Silvio Berlusconi 
was heading for a convincing 
election victory. Before the 
polls had closed the index had 
risen by 38 per cent to 69332. 
and by the middle of last week 
it had reached a record 813.63, 
provoking worries that share 
prices might he losing touch 
with fundamental values. 

Since then, delays in the for- 
mation of a Berlusconi govern- 
ment, and profit-taking, took 
the edge off the post-electoral 
euphoria before the index 
bounced back 33 per cent yes- 
terday to 80084 and analysts 
believe it should top 900 within 
the next 12 months. 

“The fact that the govern- 


ment is likely to be in place for 
more than six months, with 
the possibility of implementing 
policy in the longer term, is 
having a positive effect," says 
Ms Paola Bergamaschi of Gold- 
man Sachs in London. 

In addition, for the first time 
since the war, the Italian gov- 
ernment will be right of centre 
and keener to encourage busi- 
ness than its predecessors. The 
political revolution is not the 

Italy 


Indices rebaaed 
130 - - 



Mar 1894 May 
Source: Dat aatr e a m 

only reason for market opti- 
mism, however. 

• The economy. Mr Berlus- 
coni will inherit an economy 
emerging from a two-year 
recession. Analysts are con- 
vinced that industrial company 
earnings, hit hard by the down- 
turn. should grow particularly 
strongly over the next two 
years. The value of industrial 
stock rose 16 per cent in ApriL 

• Privatisation. The finan- 
cial groups IML Credito Itali- 
ano and Banca Commerciale 
I talians have already come to 
the market. The next nine 
months should see the sale of 
part of IN A, the state-owned 
insurer, and the privatisation 
of Stet, the state telecommuni- 
cations group. The latter sale 
is particularly keenly awaited. 

Privatisation, apart from 
improving Milan's liquidity, is 
encouraging small investors to 
switch their savings from gov- 
ernment bonds to equities. 
According to Mr Ventura, it 
could also persuade Italy's 
many family-owned companies 
to consider a market listing. 

• Share and bond issues. 
Recent weeks have seen com- 
panies as diverse as Olivetti, 


the computer group, and 
Mediobanca, the merchant 
bank, launching plans to raise 
capital, mainly in the form or 
convertible bonds. Although 
some observers blame the pros- 
pect of share issues for the 
s mall market correction this 
week, this does not seem to 
have dented the enthusiasm of 
large quoted companies to 
exploit a positive market On 
Thursday, for example. Cir, 
one of the De Benedetto fami- 
ly’s two Italian holding compa- 
nies, profited from recent buoy- 
ancy to place a large stake in 
Sogefl, the car components 
manufacturer, with institu- 
tional investors. The operation 
was conceived and executed 
within the space of a week by 
Lehman Brothers. 

The performance of the mar- 
ket in the next few months 
hinges on the performance of 
an untested government. Iffthe 
Berlusconi administration 
departs from the relatively nar- 
row path laid out by the Amato 
and Ciampi governments dnd. 
in particular, if inflation begins 
to increase and the trend for 
lower interest rates is reversed, 
then the equity market is 
likely to suffer. 

Meanwhile, in spite of tech- 
nical hitches, the exchange is 
pressing ahead with expansion 
plans. It is sometimes a thank- 
less task: having taken action 
to limit the number of very 
small orders which caused last 
month's overload, the 
exchange authorities have 
found themselves under fire 
from small investors, who 
claim they are being locked 
out 

B ut Mr Ventura shrugs 
off the problems and 
criticism and says that 
Milan should move wi thin a 
year to frill cash settlement of 
trades. That should provide a 
further incentive for non- 
Italian investors, especially if 
the regulatory authorities also 
take much-needed action to 
improve the transparency of 
public company accounts. 

In the meantime, as Mr John 
Stewart of InterEuropa, the 
Milan broker, puts it: "The 
general feeling is so positive 
that it will override any techni- 
cal difficulties.” 


Bourses resist the temptation to overreact 


I FT-SE Ac 

tuarles :Share indices 



MayB 

Konriy daign 

Open Jiuo 

THE EUROPEAN SERIES 
11-00 1250 1330 14.00 1600 doss 

FT-SE Etnaack 100 

FT-SE Bnbacfc 200 

145853 148047 
147300 147550 

146135 146096 1459.13 
H7B.1S 147696 147005 

145340 

146055 

145000 145043 
146446 1465.18 


May 5 

tty 4 May 3 

Apr 29 

Apr 28 

FT-SE Eurora* 100 
FT-SE Eurora* 200 

144010 

1466.74 

144748 148835- 

145846 1 47347 

146242 

147609 

146846 

146436 


Bna 1 D 00 QBimat ttttr TOO - K 6 Zn» 3 UD - 1477 J 0 KMtttt I «0 - I 448 JB MO • 14008 


ASIA PACIFIC 

Nikkei up 1.5% after Golden Week 


Tokyo 

A retreat in the yen against 
the dollar prompted small-lot 
buying and equities rose 1.5 
per cent in low volume, writes 
Errdko Terazono in Tokyo. 

The Nikkei 225 gained 29236 
to 19,862.47 after a low of 
19.620.82 and a high of 
19,907.98. In a shortened week 
the index put on 0.7 per cent 

Volume was 170m shares, 
many investors remaining 
absent following the market’s 
holiday closure between Tues- 
day and Thursday. 

Some dealers were heartened 
by the concerted round of dol- 
lar buying by central banks 
over the past few days and sup- 
ported the futures market. The 
Topix index rose 22.21 to 
1,615.69 and the Nikkei 300 by 
435 to 295.60. Gainers led los- 
ers by 827 to 174 with 124 
unchanged. 

In London, the LSE/Nikkei 50 
index fell 0.64 to 131136. 

The low volumes helped to 
push up some speculative 
stocks on small-lot buying by 
individuals: Wakachiku Con- 
struction rose Y15 to Y670 and 
Y.-im azaki B akin g by YB0 to 
Y2.090. 


Banking stocks were sup- 
ported by arbitrage buying. 
Industrial Bank of Japan rose 
Y70 to Y332Q and Sakura Bank 
gained Y10 to Y1.410. 

Brokers, which were sold 
last Monday, were bought on 
bargain hunting, with Nomura 
Securities rising Y40 to Y2330 
and Nikko Securities gaining 
Y30 to Y1330. 

High-technology stocks 
Improved following the slight 
fall in the yen, with Hitachi 
putting on Y10 to Y961 and 
NEC adding Y30 to Y1.140. Car 
stocks were also strong, with 
Toyota Motor up Y20 to Y1380 
and Honda Motor rising Y40 to 
Y1.710. 

In Osaka, the OSE average 
rose 20431 to 22,09636 in vol- 
ume of 188m shares. Export- 
oriented and retail stocks were 
bought with Shima Seiki, an 
industrial machine maker, up 
Y150 to Y7.000. 


Roundup 


Recovery in Hong Kong prop- 
erty stocks was matched by 
weakness in their Singapore 
counterparts. 

HONG KONG rebounded 
from a run of heavy losses, the 
Hang Seng index closing 


20739, or 23 per cent higher at 
8,62037, still 38 per cent lower 
on the week. Once again, bar- 
gain-hunters snapped up prop- 
erties, the sub-index rising by 
495.28. or 3.4 per cent to 
1480089. 

SHE Properties leapt 
HK$235 to HK$4635. Cheung 
Kong jumped HJK$1 to 
HK$3535 and Henderson Land 
rose HK$0.75 to HK$37. 

SYDNEY was lifted by selec- 
tive bargain hunting after 
Thursday's sell-off and the All 
Ordinaries index, ending a run 
of five consecutive losses, 
closed 16.2 higher at 2,004.3, 
3 per cent down on the week. 

SEOUL saw a late spurt of 
institutional, primary blue 
chip buying which took the 
composite stock index up 531 
to 92784, 3.1 per emit higher on 
the week. TAIPEI approached 
the 6,000 resistance level and 
turnover fell in consequence, 
from T$8430bn to T$70.47bn, as 
the weighted index rose 3630 
to 5,95337, off a high of 589284 
but 3.9 per cent up on the 
week. 

BOMBAY rose across a wide 
front on buying led by foreign 
and Indian mutual funds, and 
on hopes that carry forward 
trading will be restored. The 


BSE 30 share index rose 91.4, 
or 23 per cent to 3,715.0, down 
Ll per cent on the week. 

COLOMBO put in a second 
day of recovery to end only 
fractionally down on the week, 
the CSE all-share index closing 
27.02 higher at 1,044.19. 

WELLINGTON regained 
about half of Thursday’s 
losses, aided mostly by partial 
recoveries in Telecom and 
Fletcher Challenge. The 
NZSE-40 index rose 35.59 to 
2,048.41, 28 per cent down on 
the week, 

SINGAPORE reported weak- 
ness in property shares, follow- 
ing news of government curbs 
on speculation in residential 
properties. The SES property 
index fell L7 per cent, as the 
Straits Ti roes Industrial index 
dosed 2135 lower at 2356.19. 

MANILA was pulled back 
again by lower first quarter 
earnings from the telephone 
company, PLOT. The compos- 
ite index dipped 19.77 to 
286033, 4.1 per cent op on the 
week, as PLDT fell 65 pesos to 
1860. 

BANGKOK fell on the day 
and the week, the SET index, 
at 1240.71, showing falls of 
1L66, and 2 per cent respec- 
tively. 


FT -ACTUARIES WORLD INDICES 


Jointly conpfed by Pie Fatattal Tknw LKL, Goldman, Satin & Co. and NcOWest Securities Ltd. In conjunction with the hstttuts of Actuaries and the Faculty of Actuaries 


REGIONAL MARKETS THURSDAY MAY 5 1904 WEDNESDAY MAY 4 1BB4 DOLLAR MDEX 

Ftoures In oareffiheses US Day’s Pound total local Ones US Pond Local Year 



US 

Day's 

Pound 



Load 

Local 

Qrosa 

US 

Pomd 



t Md 



Year 


Defer 

Change 

Sterlng 

Yen 

DM 

Currency % dig 

Dhr. 

Defer 

Suritag 

Yen 

DM Currency 52 week 52 weak 

ago 

of stock 

Index 

* 

Index 

Index 

index 

Index 

«n day 

Yield 

Index 

Index 

Index 

Index 

index 

«9h 

LOW 

(appnsQ 


. _ 161.48 

-1.1 

18948 

10443 

14040 

16027 

-1.4 

345 

18328 

18141 

10049 

141.08 

15247 

189.16 

13019 

135.01 


_ 17&25 

-24 

17448 

11441 

15246 

15249 

-14 

142 

17940 

177.B6 

11016 

15545 

155.14 

195.41 

13943 

141.76 


17342 

-as 

17147 

112.70 

150-57 

147.03 

-04 

3.72 

17443 

17344 

11341 

151.14 

14741 

176.67 

14142 

14647 


. -128.77 

-04 

12746 

8058 

11148 

12925 

-d4 

241 

129.13 

127.73 

83.42 

11147 

129.82 

14031 

121.46 

12747 


256.94 

-04 

25440 

18079 

222.63 

228.11 

-04 

045 

259.21 

256.40 

167/46 

22346 

22009 

275.79 

20756 

224.78 


148.80 

-1JS 

147.19 

9048 

12847 

108.79 

-12 

049 

15042 

14829 

9740 

13040 

17062 

15072 

6554 

8041 


1 75.1 1 

02 

17046 

11347 

161.87 

1S743 

07 

248 

174.89 

17240 

11246 

15044 

15543 

18037 

149.60 

181 48 


„... 14337 

• -1.0 

142.02 

93.07 

12444 

12444 

-04 

148 

144.79 

14322 

9344 

125.10 

125.10 

14747 

1075S 

113.89 


343.17 

0.6 

33942 

222.77 

29743 

34040 

04 

3.12 

34129 

33740 

22049 

294.89 

33845 

50646 

271.42 

275.72 


18549 

-04 

18424 

12074 

16141 

18027 

ai 

344 

180.41 

184.40 

12043 

16147 

IBOIB 

209.33 

15523 

18228 


. 32-20 

0.7 

9143 

Sfljffi 

7947 

11073 

14 

1-56 

9148 

9040 

59.17 

7013 

10944 

9843 

5748 

70.10 


156.01 

-04 

15345 

10082 

134.44 

10042 

04 

060 

155.75 

154.07 

10002 

13446 

10042 

16541 

T2454 

140.65 



-1.0 

4S344 

303-78 

40640 

48004 

-14 

1.42 

472.77 

46748 

30043 

408.49 

487.42 

62143 

31251 

317.77 


„„ 1931.32 

-a? 

191003 

1253.71 

167448 

698347 

-02 

072 

194448 

192341 

1266.48 

1680.41 

699549 

2647.08 

1431.17 

148140 


300.70 

-02 

198.81 

13029 

17447 

17142 

03 

327 

201.04 

19847 

129.89 

173.71 

171.15 

20743 

16340 

170.17 


_ -63.45 

-3.4 

6246 

41.19 

6543 

5842 

-34 

440 

65.72 

8540 

4246 

50.78 

6048 

7748 

4042 

4746 


194,60 

02 

192.95 

126.45 

16844 

191X6 

0.7 

1.73 

194.34 

19224 

12545 

18742 

19006 

206.42 

16041 

16441 


343.01 

-1.4 

339.77 

222.67 

297.49 

24822 

-1.4 

143 

34842 

34426 

22444 

30070 

24943 

37842 

23842 

24149 


,_266-43 

-14 

25441 

168.46 

222.40 

268X7 

-0.7 

220 

261.42 

250.59 

16649 

22547 

27027 

28026 

17043 

187.49 



14 

13746 

90.14 

12043 

14445 

24 

4.13 

136.43 

13445 

88.14 

11748 

14149 

155.79 

11623 

131JS1 



ae 

22013 

14820 

19840 

26089 

14 

1-52 

22641 

224.45 

14640 

19006 

25828 

23042 

10345 

175.18 



-12 

154.06 

10098 

13448 

130.78 

-08 

1.7B 

157.43 

155.72 

101.71 

13022 

138.06 

17056 

121.14 

12358 


191.19 

09 

18948 

124.11 

18541 

16948 

1.1 

041 

18940 

187.41 

12240 

163.70 

187.41 

21446 

17032 

17822 

USA (518).” 1 ' 

184. (H 

-01 

18229 

119.47 

15941 

18443 

-0.1 

240 

18428 

18226 

11944 

15020 

18426 

19844 

17848 

18152 



02 

187.67 

10948 

140.80 

159.68 

04 

240 

18848 

167.16 

109.17 

14040 

15845 

17848 

14150 

147.23 



-01 

21248 

13948 

18822 

214.81 

03 

1.31 

21447 

21244 

13841 

185.65 

21348 

220.60 

155.82 

16743 


16241 

-05 

10)48 

10540 

14Q49 

10946 

-01 

1.10 

18342 

18128 

10542 

14046 

11008 

16840 

134.79 

15003 


166.00 

-02 

16044 

107.11 

143.10 

12941 

01 

148 

18545 

16340 

10642 

14247 

129.14 

170.79 

14148 

148.78 


18040 

-0.1 

17849 

11724 

15643 

18025 

-0.1 

249 

18043 

17848 

11043 

16624 

100.40 

192.73 

17547 

178.14 



-03 

152.05 

9066 

133.13 

141.02 

Ol 

229 

15340 

15224 

99.43 

13248 

14045 

157.47 

12227 

12748 


-—234.17 

-0.8 

231.96 

132.01 

203.10 

21347 

-04 

2.79 

23540 

233.05 

15221 

20347 

21527 

29621 

18146 

181.71 



-02 

18445 

107.71 

14340 

132.44 

01 

148 

16844 

16444 

10746 

143.72 

13220 

17241 

14244 

14022 


188.97 

-04 

16747 

100.60 

14645 

14448 

-01 

2.06 

18942 

167.68 

10942 

14047 

144.71 

17558 

15022 

15740 


170.44 

-02 

16842 

11044 

14741 

14748 

04 

224 

17075 

18840 

11031 

14743 

14743 

17856 

155.00 

18047 

World E*l Japan (1707)"— 

181.41 

-ai 

17949 

117.78 

15743 

17847 

0.0 

245 

18146 

17840 

11720 

16648 

17841 

19520 

165.70 

167.40 

Tho World Index 01 78) ._ 

..._ 17044 

-02 

16942 

11097 

14825 

14840 

04 

224 

17129 

10043 

11046 

14840 

14846 

17847 

155.17 

15945 


CopwtsM. The Ftaanctii Time* Unfed. QttttwV S«*» ana On. Wd MMMt SntiM LKWnd. 198? 
I tint pten am umw a Matile tar Ma MHon. 


LONDON EQUITIES 


LIFFE EQUITY OPTIONS 


Option 


■ Gifts - 


■ Pud - 


M Dd Jan Jd Oct Jb 


MmHjoos 540 39 * - 18 23% - 

1*571) 589 14 29% - 44 BOM - 

Aifflffl 240 16 2ZH 27 14 16 22ft 
' 1*348 ) 260 S 12*. 18 28» 30 34 

ASM 50 6M 10H lift 2 4K 4ft 
(■SB) 60 3 5 0ft 7 10 10ft 

Bit Always 300 34 44H 34ft 27 34 39 
(■415 ) 420 10ft 20ft 34ft 27 34 39 

SAMOA 390 23 32 38 20ft 29 35 
[-393 ) 42D 11 Itft 27 39 48 53 

Bods 550 31 42 51 21 ZB 34ft 
(*562) GOO 0ZO» 29 52H 50 03ft 

BP 390 20ft 30 44ft 13 19 24 

(*403 ) 420 15 23ft 30ft 2BM35H39M 

Britt Steel 140 17 21ft 24ft 5ft 9ft lift 
(151 ) 160 7 lift 15 15H 19ft 22 

Bass 550 SOH 51 51ft 24» 31 43ft 
rS55 ) 600 12 a«H 30 sa» 62ft 75 

NM&Btl 435 29ft - - 19 - - 

f*438 } 450 17ft _ _ 33ft _ _ 

CaurtaMs 500 OBftBTft 74ft B 1BK 23 
(*549 ) 550 2SK 37ft 46ft 29 38ft 45ft 

Ceram Udan 550 44 49ft 58 lift 20ft 24ft 
rS75 ) 600 10ft 25 33 36ft 48 52 

a BOO 61 73 SBft 20ft 35 45 

(*S33) 850 31 ft 47H 68ft 43ft 60ft 68 

Khtfsher 550 50 SI 72K 15 24ft 31 
(*580 ) 600 22 35 47ft 38ft 50 56ft 

Lind Secur HO 21 ft 31ft 3B 28% 34% 40% 
(*655 ) 700 5 14 21 68 70ft 73H 

ItateAS 420 10ft 30 34 17 20» 25 
(*425 ) 480 5 12ft T7ft 45 46ft 49ft 

Its SUea 420 41ft 48 50 10ft 19 21 
(*445 ) 460 IS 27ft S5ft 29ft 37ft 41 

Sammy 3so2o»3o» sa 21 ft 28 34 

(*383 ) 420 Oft 20U S 43 49ft 53 

SMI Trans. 700 62 03 70ft 10ft 22 27 
(*732 ) 750 21ft 35 44 30 45ft 51 

SbrtmiM 200 19ft 25ft 29 6» 8ft 13 
[*214 ) 220 Oft 14ft 10ft 17 2QM 23ft 


07 12 - - Oft - - 

(102 ) 106 7 - - lift - - 

UnBnv 1050 90ft 82 OSH 22 31 39ft 

(1072) 1100 23ft 54 B7K 48 56 63M 

Zeoaca 700 37 51 ft «M 20 40ft 47 

(705) 750 17ft 2Mr 39ft 55ft 69ft 78 

tty Abo Hot May Dug Nov 


Grand Mat 480 
(*466 ) 500 

UdMka 160 

nas) 200 
MfBfcCUb 330 
(■353 J 360 

Option 


II 2flft 41 4 

1 12ft 23 38 
8ft 18ft 2Sft 2 
1 9 16 IS 

2B38H47H 2ft 
3 21H 39H 10K 20ft 28H 
Jfe Sip Dec Jen Sap Dec 


21 SB 
46 31 ft 
9 14ft 
21 26ft 
Sft 14 


Ram 140 14ft 21ft 25ft 5 lift 16 

(147) 160 S 12 16ft IBM 23H 28 

Option May Ang Hot Map Sup War 

MAara 480 24 56 70ft 4 29ft 42ft 

C473 ) 500 3ft 36 52 25ft 48ft 84 

BAT tod* 420 31 45 50ft 1 9ft Ifi 

(*447 ) 480 2ft 21ft 2Bft 18 27ft 39ft . 

BIB 390 7 23M 32 4ft 16H 28 

raOZ) 420 1 Oft 19 29ft 35 43ft 

Bit Telecom 380 14ft 2B 32 1H 14ft 20ft 

(*372 ) 390 1 12 17ft 20 33M 38 

CaamySdi 453 34 - - 1 - - 

r<84 ) 493 3 - — lift 

Eastern Bar HO 39ft 51ft 01 1 19 27H 

rSH) BOO 3 26ft V TO «ft 54ft 

Guknaa 460 25ft 39K 48 1ft 12ft 21 

(*4fl1 > 500 2 17ft 27W 22 32 41ft 

SEC 300 Sft 14H2BH 3» 18ft 21 
(HQ) 330 1 4 9 30 39ft 41ft 




— 

Gab 



-Me 


Option 


tty 

Ana 

In 

tty 

Aug 

Bar 

Hamm 

260 

8 

16ft 

21 

1ft 

10 

15 

ra») 

280 

1 

7ft 

12W 

16 

22 

20 

Laura 

134 

16 

2<ft 

2BW 

1ft 

8 

10 

(*147) 

154 

3 

13 

16 

9 

10 

IBft 

lurem teds 

200 

7 

IB 

24 

2ft 

IT 

17ft 

f204) 

220 

1 

8ft 

14ft 

17% 

23 

29% 

PSD 

650 

a 

70 

82 

1 

15 

29% 

(-K5 ) 

700 

8ft 

38ft 

53ft 

12ft 

35% 

55 

nktoQton 

iao 

21 

28 

3* 

1 

5 

9 

nw) 

200 

4 

14 

23 

3ft 

14 

18 

Prudential 

300 

7 

22 

a 

Sft 

12ft 

IB 

(*303 ) 

330 

1 

8 

13 

2B» 

31ft 

36% 

HTZ 

600 

90 

78 

91ft 

1 

19ft 

35 

CB* ) 

880 

7‘ 

48 

63ft 

13 

41ft 

50ft 

Borland 

500 

a 

47ft 

69 

1» 

15b 

27ft 

1*525) 

550 

1H 

21ft 

33% 

28K 

39ft 

55 

Royal loses 

280 

0 

21 

29ft 

5 

16 

24 

(*260 ) 

280 

tft 

12ft 

21ft 

22 

28ft 

35ft 

Tosco 

220 

4ft 

17ft 

84ft 

3 

lift 

17 

C223 ) 

240 

1 

Sft 

15 

10 

24 

28ft 

Vodafone 

500 

48 

B2ft 

77ft 

1 

13% 

22 

rS46) 

550 

7 

32ft 

49ft 

lift 

34% 

44% 

mbm 

354 

9ft 

24: 

32ft 

3 

13ft 

19% 

ram ) 

384 

1 

11 

18 

25 

31 

37 

Option 


Jii 

DO 

Am 

JBI 

Oct 

Jan 

BAA 

950 

n 

81 

93 

21b 

32ft 

41fc 

n»7) 

1000 

31ft 

53ft 

BSft 

46 

67 

64 

Times Mr 

420 

44 

47 

48ft 

8ft 

15M 

22 

("458 ) 

400 

17 

23ft 

27 

29% 

36 

43 

Option 


Jttl 

SW 

Dee 

Joi 

Sep 

Dec 

Atioey Nad 

300 

33ft 

42ft: 

Sift 

4ft 

13ft 

ISM 

(*415 J 

420 

13ft 

2BW 

35% 

17 

27 : 

32% 

Amttatf 

30 

B 

7ft 

Oft 

1ft 

3 

4 

P34) 

35 

Z» 

5 

0 

3ft 

5ft 

6% 

Bontiya 

500: 

32ft 

«ft 

57 

9b 

22ft ; 

31% 

rsiBj 

550 

a» : 

22ft: 

33% 

37% 

90 

59 

Hue CWe 

200 

a 

36 

41 

4ft 

lift 

16 

l*29B) 

300 

12ft 

25 

30 

12ft 

21 

26 

wash 80 

280 

10 

17 ' 

raft 

13 

17ft 

25 

1*284 ) 

300 

3ft 

9 

12: 

28%: 

31ft 

38 

0 tares 

200 

11 

ISft 

23 

Sft 

18% : 

ZO% 

(•201 ) 

220 

3ft 

10ft 

15ft 

22 : 

3i»: 

m 

HfedoiMi 

in 

20 

26 

29 

2ft 

s 

6ft 

(*175 ) 

in 

6ft 

14 : 

17ft 

9 

IS 

ISft 

Loortio 

140 

0 ' 

15ft 2SH 

8 

15ft ' 

18ft 

n«) 

160 

3 

a 

13 

23 : 

3ft 

32 

Had Power 

390 

34 

40 

46 

Sft 

14% 19% 

("418 ) 

420 ’ 

12ft 

24 

32 

22 

29 34ft 

Sot Power 

330 

s ; 

34ft 

39 

6 

17ft 

20 

rue ) 

300 

9 

IB 

25 

20 

33 

37 

Sean 

120 

Oft 

12 : 

14ft 

3» 

OH 

8ft 

(126) 

130 

3 

7 

8ft 

9ft 

12ft- 

14ft 

Porto 

220 15ft 

a 

27 

0 

12 1 

15% 

C227 ) 

240 

G 

IS 

17 

17 

23 

27 

Tannic 

166 

14 

- 

- 

9 

- 

- 

n«5] 

174 

1 

- 

- 

16 

- 

- 

linn 9fl 

1100 

63 88ft 

TOG 

18ft ! 

52ft 

65 

PT135) 

T1W36ft 

W 78ft 

42 

79 01% 

I5B 

200 18ft 

26 29ft 

3ft 

9H 

13 

1*213) 

220 

7 

15 

« 

13 20H 

24 

Tonridcs 

240 

11 

16 22ft 

8ft 

17 19ft 

(-241 ) 

280 

4 

9ft 

14 

23 

30 32ft 

tiMam 

SO 36ft 60ft 

B9 15H 

34 42ft 

CW7) 

600 13ft SBft 

47 44ft 

62 69ft 

Option 


Jofl 

Det . 

Jee 

Jri 

Oct , 

Jan 

QUO 

550 42ft KTft B4ft 

24 45ft 51ft 

1*562) 

600 20ft 34ft 

44 53ft 75ft 81ft 

KBCfya 

850 

8299ft 

IIS 

23 

39 48ft 

CflM ) 

763 Sift 

73 

01 

43 63ft 

73 

Rorien 

4750 

34 43ft 

- 

17 

26 

- 

(-4685) 

4875 

27 37ft 

- 23ft 

34 

- 

Option 

■qr ut Rw May Aug l 

liar 


IBS ISft 23ft 28ft 1 7ft 12ft 
(183 | 200 1ft 12 17 8ft 15H 33 

■ Urnwlytnc weutty price. Framm shown am 
baud on ctoilng obr prices. 

May 8, Tom cottacta: 20,126 C«B* 16007 Putt: 
12.128 


FT GOLD MINES INDEX 



tty 

5 

ft cdg. 
on tar 

tty Uw Vtor 

4 3 age 

*5? 

UQh Low 

SaM Bfen Wat (35) 

176008 

-2J 

1829.18 H51J5 151X54 

2.10 

336740 151154 

■ Mgknl bdeH 






A&lca(16) 

2470.22 

-30 

2*132 271120 200034 

403 

344000 188100 

Amnfeslap) 

217407 

-U 

221X83 2279.12 184302 

Z18 

301309 164302 

North America (11) 

1527.10 

-2.4 

158423 153007 135054 

064 

203905 135054 


CopjmoW. The flnancu limn Unfed use. 

Ruaa In bndteB show mantas ot companies. Bnab US Ddta. Bow Vgtaose 10HL00 31712(92. 
nadaeaunr Odd Mnaa tads* Mu 6 : SOU : dwrfe: *45 poMe; Yew ape: 1ST0 T FWM 

Laws Price* ware unaaUMs tor tata aWon. 


RISES AND FALLS 



Rtaee 

On Friday - 

Fata 

Same 

On the w««k 

Rtaaa Fata 

Santa 

British Finds 

2 

86 

5 

55 

216 

21 

Other Fixed Interest 

□ 

0 

15 

a 

6 

54 

Mineral Extraction 

88 

38 

75 

225 

283 

296 

General Manufacturer 

126 

133 

410 

481 

568 

1.629 

Consumer Goods 

42 

43 

107 

155 

179 

434 

Sendees 

93 

ae 

337 

317 

383 

1.364 

mattes 

3 

30 

13 

57 

87 

40 

Hnandals 

128 

62 

187 

415 

351 

745 

Investment Trusts 

81 

63 

328 

201 

507 

1.120 

Others 

62 

35 

33 

228 

108 

122 

Totals 

62S 

558 

1010 

2,184 

2,746 

5,825 


Data baaed on thou oompa nln bud on the London Share Senrica. 


TRADmONAL OPTIONS 

RretDeafinga May 3 Last DactaraUons Aug 11 

Last Deafings May 20 ForsetBamant Aug 22 

CaBs Avsaco, Bute, Jacobs (JQ, NHL, Smith Now CL Puts 6 Cans: Argyll. Tosco. 


LONDON RECENT ISSUES: EQUITIES 


Issue Amt 
price paid 

P up 

MM. 

cap 

(EmJ 

1994 

Mgh Low Stock 

Ctaee 

price 

P 

+/- 

Net 

dhr. 

Dhr. Gra 
oov. ykt 

P/E 

net 

100 

FJ». 

404 

102 

96 Abtiust W 9 I 1 Inc 

101 

-1 

. 

_ 

_ 

- 

— 

FP. 

104 

<0 

9 Ahtrust Scot Wrts 

10 


- 


_ 

_ 

- 

FP. 1020.7 C14% Ci4ia Ashanti Geld 

S14* 


- 

- 

- 

- 

100 

F.P. 

400 

114 

110 DRS Data 8 Ra 

113 

« 

LN2-8 

1.1 

3.1 

27.0 

— 

FP. 

100 

30 

28 Hr ErflnbQh. Inca W» 

27 


- 

- 

■ 

_ 

160 

FP. 

01.1 

171 

160 GOT Bus 

171 


RN3.8 

13 

2.8 

130 

— 

FP. 

1040 

483 

479 Gowatt Global Srrir 

479 


- 




185 

FP. 

42.4 

196 

185 Hamteya 

185*2 


W4.7 

12 

A2 

170 

180 

FP. 

4170 

191 

178 House o( Fraser 

182 


LN5.0 

2.2 

3.4 

18.4 

> 

FP. 

_ 

96 

95 InB BWoch 

95 



_ 



— 

FP. 

- 

39 

30 Do. Warrants 

39 


- 

- 

_ 

_ 

130 

FP. 

71.7 

138 

120 Kefcr 

128 

-4 WN04.7 

2-3 

17 

140 

156 

FP. 

030 

164 

152 Nottingham 

159 

-1 

mSJSZ 

I* 


15.6 

80 

F.P. 

27.7 

87 

73 Oxford Molecular 

75 


- 

- 

- 

_ 

200 

F.P. 

71.1 

241 

216 Parico 

241 


L5.35 

22. 

2-8 

200 

ISO 

FP. 

210 

181 

100 Persona 

1B1 

+3 

1*084 

IB 

Z7 

160 

- 

F.P. 

5.93 

60 

53 Secure Retirement 

69 

-1 

- 

- 



120 

FP. 

280 

133 

131 St Janies Btii Hot 

131 


RfOB 

1.7 

3.B 

180 

190 

F.P. 

120 

261 

198 Sttaerscape VR 

238 

-4 

_ 




100 

FP. 

43.0 

93 

61 Templeton Lat Am 

93 

+1 

. 

- 

- 

_ 

- 

FP. 

407 

50 

44 Do Wrts 

44 


• 

- 

ra 

- 

- 

FP. 

1420 

104 

100 Templeton Emg C 

102 


- 

_ 

_ 

_ 

100 

FP. 

610 

102 

99 Undarvahieti Ads 

102 


- 

- 

- 

. 


RIGHTS OFFERS 


Issue 

price 

P 

Amount 

paid 

up 

Latest 

Reran. 

1994 

High Low Stock 

Closing 

price 

P 

+0f- 

- 

Nf 

- 

3pm 

1pm Abtiust Scotland 

iNpm 


390 

NS 

17/B 

79pm 

28 pm AJrtotn 

76pm 

-3 

52 

M 

2/8 

4j2pm 

l>zpm Albert Ftaher 

3pm 

-h 

0 

Ni 

in 

Ihpm 

'.pm AOed Radio 

bpm 


£16 

Ni 

a/s 

390pm 

120pm Brit Bto-Todi Uts 

120 pm 

-25 

55 

M 

- 

10 pm 

5pm Date Beane 

5pm 


900 

NI 

20/5 

63pm 

58pm Denrem Vtfay 

58pm 


9 

Ni 

37/5 

J*pm 

Upm Ere 



25 

NI 

- 

10 pm 

9pm Gurnee Peal 

9 l 2pm 


192 

Ml 

15/B 

27pm 

14pm Hurnere Armtoy 

14pm 

-1 

105 

NB 

27/S 

65pm 

10pm LASMO 

43pm 


425 

ND 

27/5 

s^aam 

54pm Ways 

S7l2pm 


25 

M 

- 

4jan 

lit pm Pantos 

a«4pm 


2 

M 

34/5 

Vpm 

4|pm Kmart) 

\pm 


34 

NI 

- 

11 pm 

11pm Uric 

11pm 


330 

NI 

as 

43pm 

29pm WBameHkto 

33pm 

+2 


FINANCIAL TIMES EQUITY INDICES 



May 6 

May 5 

May 4 

May 3 

Apr 29 

Yr ago 

■High 

*L0W 

Onflnmy Sham 

2401.0 

24010 

24830 

2494.1 

2505.8 

2189.4 

27130 

24392 

Ord. cSv. yield 

4.01 

401 

403 

3.99 

307 

424 

406 

043 

Earn. ykl. K fid 

5^7 

5.47 

5.49 

5.42 

5^40 

&30 

601 

3.B2 

P/E ratio net 

19.60 

10.02 

1906 

19.79 

1907 

19.40 

33.43 

1908 

P/E rate nfl 

20.49 

2051 

2040 

2089 

2077 

10.14 

3000 

2037 


Tor 1994. OnSnwy Snare Index atneo ccmp la wn: high 27109 2AB/B4; low 494 26iW40 
FT OriSrwy Sh» Max bass data 1/7/38. 


Onfcwy Ghana hourly ch ange s 

Open MO IOjOO 1100 1200 13jQd 14J» 1500 1600 Mgi L aw 
2483 J 24330 2481^1 2486.4 2487.5 24889 24735 24725 24835 24903 240.9 



May 8 

May 5 

May 4 

May 3 

Apr 29 

Yr ago 

SEAG borgahs 

Equity turnover OErtSjr 
Equity bergateef 

Shane traded (irrfft 

1 Ewriwflng Intro -mwh«t bu 

25.404 

tinwnl m 

23092 

1469.0 

27042 

685.3 

eranoB unn 

22004 

12245 

25008 

494.7 

per. 

24.632 

124&4 

27,400 

6070 

24022 

1237.1 

27046 

4840 

28.151 

1374.4 

32,175 

818.1 






LONDON SHARE SERVICE 


+*r 1994 


•■‘ T. '-.' Tf 


*nr 1994 
Pita - IM Im 

A VJM 6 

W -2 HU 50/ 

MO -2 2*6 257 

174 193 168 

Ml +1 Ml 142 

BOV +1V 81 98 

cm -1 483 «Z3 

420 <2/ 373 

40 +1 811 429 

42« -9 884 478 

1*1 *» t24 

90% *n 00% 

3175 3725 3125 

MA +2A «24V 674 

188 Ml 198 

271 *1 MX 282 

40S MB 463 

M Z O ^ 

B21 -2 *M1 510 

A A I ft 

201 -I » 368 

ana — •mu 3Zih 

_ 888 -8 017 B11% 

tt9r&DaMy_JCI « BM 483 

YtugA t B38 SB 483 

Wl- t 481 406 423 

CONSTRUCTION 


+0T 
Priea - 
Ml -6 

Ml 

1ZW -2 

M% 

41 


1M 

83 

41 

CM -2 
180 -2 
M2 


201 IS 
290 148 

184 118 

^ & 

5 S 

"454 333 

MI 145 
41 28 


EffiisiiiS *£ = 2 


m 


SK 


Pda - 
8412 — 
MB -7 
3 Vv& — 
on+n 1 * 
an ^ 


1984 m 

htt tm bgn 
1 H M 

m 216 2U 

41 14% 04 


mgo - ttt iw c«£b er> k 

7 W* 6% 991 - - 

mo m in mi is au 

mb -z as 203 up sjs mi 

289 -4 M2 203 MU 28 + 

caul, -1 A E2U6 DEJiO *00 21 - 

s a£ -g mX ee? sjn i J * 

BMDUSTRBS 


u - 
u - 

04 - 

« t 

4.7 125 

05 - 
05 164 
or z*7 
43 125 
22 102 

a as 

124 
OB 528 
04 - 

U 114 
101 - 
04 308 
06 72.1 
43 143 
07 343 
OS 693 

OS 50$ 


16 __ 

380 -4 

71S 

KM 

51 


223 +1 

J6% -l*a 

490 *9 


34 193 
29 122 
U 154 
14 300 
14 220 
25 194 
28 215 
24 123 
22 ZIJ8 7%jjcC*Pf 


78 

BOB +12 

239 — 


114 
63 
41 
214 
158 
230 
48 225 
480 3804 
118 03 
M 824 
Z77 M3 
35 US 
39 123 
ISO 2*7 
140 4320 
111% 824 


103 03 
15 2M 

3 !5 

19 UB 

435 427 

9 *57 
41 4X8 

918 975 

87 HI 

8 IM 

121 4U 

139 MU 

122 803 

20 UB 

43 114 

18 741 

4S2 9JBB 
305 WBJ 
303 18*1 
12! «5I 

115 123 
105 467 

198 803 
Z4G 153.1 
50V 8*3 

4% 637 

97% Ml 


[ a=£ \ 

-a 


bto to tofia 

to 111 *3.1 

290 189 5U 

TaO 243 54J5 

<43 253 too 

n 44 840 

31 22 1U 

"T7B 134 M3 

B 3% 124 

STB 531 14U 

25% 19% 231 

to 330 IBS 

« 33 134 

3K 2M MU 

at 22 647 

M 78 225 

71 48 125 

87 46 S74 

4M 400 134 

5 au 
to ice i*b 

MS 110 MS 

48 32% 1U 

3M Ml 4928 

tZ% 8% 740 

TO% 127 404 

"187 120 224 

«C 445 Ml 

to 535 2821 

2SS 1GB ZU 

SM 508 1473 

779 733 324 

282 2Z7 Z234 

88 17 129 

173 133 M2 

5S2 408 114J 

489 424 401 

885 548 7521 

70 58 7776 

to 130 320 

34 25 274 

4B 35% 101 

M 80 BS2 

*151 134 M4 

8% 4 618 

5i 15 2J3 

*231 200 M4 

"842V 268% 140L7 

119 88 *97 

M 16 2514 

191 172 274 

1M 119 504 

era 503 ZMZ 

25 11 1*4 

SB X 228 

TM 80 911 

184 1SB% 3008 

an 446 KU 

278 236 888 

272 182 463 

137 115 M2 

3 £ as 

371 279 221 

10 47 111 

to 180 102 

1M 281 1147 

*Z» 775 527 

ZS7 210 M2 

218 158 432 

110 H7 &90 

A A 079 

24 15 254 


M% 

71 

toS aj 

S37i A 

75 

M — 
626% -V 
281 -1 
11 

■ss * 


sag +11% 


:t i i . < a ■ . 


« 19 3172 

191 158 MU 

BA 

to 149 SU 

W7 IP 8328 

M 8% 324 

3M 348 1321 

MG 730 2994 

M6 115 1U 

82 <7 *81 

300 255 181 

7i ss ms 

319 30 MB 

Ml 710 UBS 

36% 31 221 

497 320 %5n 

52 38 244 

37 22% AM 

■ 77% MJ 

829% £14 MZ1 

C1M £H7% US 

840 283 912 

3*0 263 224 

n 70 *M 

121 100 828 

44 18 721 

SB 83 229 

to 181 B84 

MO 187 8682 

Si 33 720 

ns loo iso 

as 16 uo 

in 229 IBM 

27 23 112 

■ 72 2M 

» « 1U 

E3H S2S1U 1*221 

49 41 144 

MlgBAMg 

194 76 82.1 

£27 A £22* 4728 

814 284 SU 

19 11 OB* 

m bi us 

202 181 161 

to 133 231 

Of 255 203 

39 27 4*5 

M 12 2M 


*S 1% 223 


+ 0T 1994 MB 

-1 "Ss 740 <? "S23 

to 118% 3BU 

2M 157 1341} 

M% M am 


2 

648 

60 

to 

W 

zn 

— 

ta 


247 

» 

ta 

179m 

■BU 

4J 

11 £ 

Sa 

74?1 

25 

28J 


1385 

43 

* 

29 

261 

. — 


13^ 

au 

12 

2U 


121 

— 

— 

1!? 

tu 

SB 


as 

5XZ 

- 

— 


111 - 
12 824 

U"i 
21 128 
- 224 

M ♦ 

54 3U 

01 I 

40 18JS 
U 44 


E Tl 

ns 

— 3 


35 

+% 9 


W 

+d £14H 


-V «*% 

-4 125 

A 18V 

+1 to 

-4 79 

28 


78 1HJ 
1M 427 
490 854 
£33% to 


148 749 
M ITU 
105 449 

23 274 

23 772 
8 228 
200 343 

A 297 
£12% 1JB1 
282 ITU 
43 Ut 
IS HI 
to BED 
390 1414 
111% 3023 

S 032 
20 U 
SB 263 
14 MB 
25! m2 
220 623 
170 US 
305 823 

55 2.72 

22D 14J 

403 141 


Z 1 


355 +1 401 296 SU 

aw +1 4D 236% 2914 

37 39 SS 347 

to +7 to 90% 82J 

IS *1 M 10 AM 

99% 37 26% 491 

3Ba 41- 35 MJ 

846 +27 MB 580% 714 

Sf ^ IS s 
sa+^s* 7 ^ 4 ® 

SS = % 2^ S 

M 29 IS - 

KB *3 1T7 « M 

132 42 927 Mfi 2244 

S -3 W U 90J 

-AU 38 28% 3 14 

T7% +% 8B% 1K% 729 

43% +% 74 30% 174 

7% +% 13% 7 147 

7M% +44% 914 895% 1J6M 

737% +19 775% 549% 17.1 

«% 4% ID W 14 

39% —V 81% 5% 942 

71% +%na% 7f 944 

a 89 48 <82 

M 135 78 MD 

to +1 449 300% SM 

T2D -4 T73 120 MJ 

49191 +3 -M 45a i,«a 

IB 19 A MB 

M H% 8B% 17 Ml 

57 __ 57 <1 273 

■25% +61 MM 741% 9614 


39 2P% 4JB - - 

» 211 1294 11 1*7 


frVid 


19 7U 
75 1B7.1 
31 12J 

1S3 824 

24 74» 



1084 
% 


sto 

121 

— 3M 

to 

J £ 


=5 1 


310 

+5 "to 

M 

— *M 

— « 

17 

134 

-8 404 

<3 


274 817 
88 362 
271 MJ 
244 14BJ 
95 *77 
73 M3 
200 783 

373 1174 
84 Ml 
N 8*3 
X 260 
00 943 * 

in mm 

235 zn4 
109 1M2 
7 2JB 
US 
310 
313 


38 57 27 609 - - 

H +2 86% 53% SU 23 223 

M% +1 29% 18 688 - 

to m 32 4634 21 14.1 

OK +% to 106^ 1.7M 11 143 

£M% ~7\ EM BIB 1J76 23 233 

2A +1 37% ZT Ml 233 XS 

14% 18% 14 Til - - 

1*9% +8% 292 103% 128 73 62 

7A A M D 77.1 U - 

325 -2% 4M 319% 874 — — 

274% +4% 430 270% SB7J 164 28 

M -A 17% ffifi SBOJ - - 

84 SlK 

Ml -17% 837% «7 9BD - - 

« SS 36 as - - 

45 *88% 33 862 - - 

EC CIA £11% U72 22 228 

t1% +1% 18 8% 113 - 

11% M% A 2M - - 

MB +4 to to IMS 11 124 

15%' 28% 13% 334 - - 

EWjj A 034 Hffl t84D 11 113 

B3A +19% 996% 575% MU 18 73 

82% A «7 69V 13J 117 44 

to% -A 333 178% 302 - - 

«A -% 156% 111 1M4 13 SU 

M- +1 Ttf 77 1M4 34 4 

88 +2 M 17 M3 - - 

156 180 142 482J> 13 42.1 

S% II 18 132 - 

8% A A A 448 - - 

18B3 +81 159B 1227 WM 27 107 

AAA 5 173 - - 

293 -T » an at - 

12% 17% 11 440 - - 

II 17 10 230 -- 

227 -2 M2 ISO 829 - 

in -i m mi 4t7 - 

M A MA 138 22JB 

MM 22B 170 B.1 28 67 

349% -A 2 JJ% 340 MU - - 

M% +% 1S% 13% 4827 18 128 

82 134 74 PJ - - 

157% +7% 2B1% 146% 1JO 12 243 

1M +A 135 M 862 - - 

M 75% 45 - - - 

22 34 21 138 - 

• A *W 65 1*13 - - 

S +1% 117% 7B 5723 - - 

+2% 86 33% 47.1 -> - 

22% S3 22 838 - - 

386 +5 425 305 723 04 - 

1= +1 MOV 122% 7868 - - 

to £% 12A MB 14 403 
t*% A 28 1A 737 - - 

25791 -3 4B 717 18U 47 4 

MM +1. 8M 790 US 10 24.1 

40 +2 40 42 737 - - 

4 M 7 081 - - 

268% 296V 187% MU *0 1*1 

MA -A M!% 884 WJ 73 U 

66% A 72% 61% 163 - - 

M7 +2 295 210 4313 - - 

•R J ^ U ^ “ 

M +2 T» 78 - - - 

657% +•!«% 701 540% 8M 73 117 


+» 1994 « 

. MM ■» Csffl; 
HU 202 2W3 

I ■ S fi 

"ri SB m 4*7 

-saw 

■ c ss m 
- ^ 

~ to to «« 
+3 318 4M1 

*218 208 3*7 

~ 910 MU 


+«r 1984 IN 

= s * a 

Z » 

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tVloDo 


PULP, PAPER & 
PAPERBOARD 


FINANCIAL LIMES 

Weekend May 7/May 8 1994 


brother. 


TYPEWRITERS - WORD PROCESSORS 
PRINTERS • COMPUTERS - FAX 


Port city targeted as Arab league calls emergency meeting 

Civil war intensifies in Yemen 


By Eric Watkins In Sanaa 


Heavy ground fighting erupted 
throughout Yemen yesterday, 
with air attacks launched against 
several cities, as the country 
entered its third day of an inten- 
sifying civil war. 

Military leaders in Sanaa, the 
capital, appear to have given up 
hope of a negotiated end to the 
hostilities, and declared their aim 
was to capture the southern port 
city of Aden and take control of 
the entire country. 

The French navy evacuated 
some 400 Westerners yesterday 
from Aden. The defence ministry 
in Paris said boats ferried the 
evacuees to the warship Jules 
Verne, just outside Yemen's terri- 
torial waters. A spokesman said 
about 2,000 westerners lived in 
Yemen, and some 5,000 of dual 
nationality, mainly American- 
Yemenis. 


Fears about the escalating con- 
flict in Yemen, a relatively small 
exporter of oil, has coincided 
with increasing concerns about 
tight oil supplies, pushing oil 
prices higher. The North Sea 
Brent crude oil price rose by 50 
cents to $16.05 a barrel yesterday. 

The north Yemeni leadership, 
headed by General All Abdullah 
Saleh, dismissed the southern 
leader, Mr Ali Salem al-Biedh, 
from the government and ordered 
its troops to capture him and 
other high-ranking officials, 
branding thorn “war criminals". 

Yemen became a single coun- 
try in 1990 when the north and 
south agreed to merge after more 
than three years of negotiation. 
During the past year political dif- 
ferences have deepened despite 
attempts by other Arab countries 
to negotiate a solution. An emer- 
gency meeting of the Arab 
League has been called by Egypt 


for today, and President Hafez al- 
Assad, of Syria, appealed to 
Yemeni leadens for restraint 

North Yemeni military com- 
manders said yesterday that the 
south had launched a missile 
attack on Sanaa at 2.45am, hit- 
ting close to the presidential pal- 
ace. Western diplomats con- 
firmed the report and Identified 
the wissHe as a Scud. 

Northern defenders met attack- 
ing aircraft with anti-aircraft fire 
and sent up two further barrages 
at 430am and 6am. 

Sanaa radio reported further 
air raids on the northern region 
at Hodeida, a main port city on 
the Bed Sea; at Mareb, a key oil- 
produdng region east of Sanaa; 
and at Taiz, a major city some 
250km south of Sanaa. There 
were no immediate assessments 
of damage or casualties. 

Ground fi ghtin g was reported 
in the border region between the 


former north and south Yemen. 
Northern republican guards are 
said to have routed the southern 
. Basuhalb brigade in a tank battle 
on Wednesday night at Dhamar, 
about 100km south of Sanaa. 

Northern units were reported 
to he driving towards Mukayras, 
about 120km north-east of Aden, 
in an effort to link with other 
units based at nearby Laudar and 
at Shurpa, on the Gulf of Aden. 
Their aim is to isolate Aden. A 
northern officer, dismissing the 
old border, said: “Our only fron- 
tier now is the sea.” 

Communications between 
north and south have been cut, 
blocking casualty and damage 
reports from Aden. The northern 
leadership, which controls the 
country's communications, also 
cat most Bnks with the outside 
world. Airports In Sanaa and 
Aden have been closed indefi- 
nitely. 


Coffee leads commodity prices surge 


By Deborah Hargreaves, Kenneth 
Gooding and Robert Coraine 


Coffee 


Copper 


International coffee prices 
yesterday staged their highest 
daily rise for nim» years when 
benchmark futures contracts 
increased $91 a tonne. 

The jump came as other com- 
modity markets showed big 
gains. Copper prices soared to 
their highest level in 10 months, 
helped by news that London 
Metal Exchange stocks of the 
metal had fallen by 33 per cent 
to their lowest level since July 
last year. 

Oil prices rose by 50 cents to 
$16.05 a barrel for North Sea 
Brent crude after the outbreak of 
fighting in Yemen. Cocoa and 
aluminium prices also made mod- 
est gains on the back of the surge 
in the other markets. 

“It’s a classic commodity bull 
run, but it is still sporadic and 
it’s too soon to talk about com- 
modity prices pushing up infla- 
tion," said Mr Lawrence Eagles, 
commodities analyst at GNI bro- 
kers In London. 


London RobU8ta2nd-Pas. LMESmortti 
S per tonne $ per tonne 

1,300 2.100 


Brent Crude 2 mordh forward 
$ per bare) 

- 17 - 


1,600 — j - 2.000 — 


1,400 1300 

i,8oa U- 


1,800 .ViirjL. 

:»i • * r -,i ‘ If ,&:* ; '«iA 1 


1,000 » • ■■■' * 

1994 

Sane: Duma own 


W 1 


The recent price surge, which 
has seen the London Commodity 
Exchange's July coffee futures 
contracts rise 10 per cent this 
week to a five-year high of $1,789 
a tonne, has been exacerbated by 
speculative money pouring into 
the commodity markets. 

“The funds tend to treat com- 
modities as a group and with one 
going up they pile into them all," 
Mr Eagles said. 

The strength of the US econ- 
omy has prompted rising demand 
for basic raw materials such as 


oil, copper and coffee. Stocks of 
these commodities are low after 
five years of depressed prices. 

Stocks of LME capper are now 
26 per cent below February’s 16- 
year peak, pushing the price of 
copper for delivery in three 
months up $52.75 to $232730 a 
tonne yesterday. The price has 
recovered by more than 25 per 
cent since it reached a six-year 
low of $L613 in the autumn. 

Oil prices have risen sharply in 
recent weeks from a low of $1230 
in mid-February. Although 


Yemen is not a big oil exporter, 
the outbreak of fighting coin- 
cided with a perception in the 
markets that supplies could 
become tighter. 

The oil price is also being sus- 
tained by a flurry of buying by 
refiners, who until recently had 
delayed purchases of crude in the 
hope that prices might weaken. 

Goldman Sachs, the US invest- 
ment bank, said that its commod- 
ity index, which tracks the prices 
of 20 commodities, rose 4.4 per 
cent in the first quarter of the 
year and is forecast to increase 
by 23 per cent over the next 
year. 

But producers say prices are 
only just beginning to return to 
levels at which they can make a 
profit 

“Overall, producers' revenues 
have halved to $5bn a year in the 
past five years and they cannot 
afford to fertilise their crops,” 
said Mr Nestor Osorio, Colom- 
bian coffee representative in Lon- 
don 


Coffee shows the way, Page 12 


Major hits out over leadership threat 


Continued from Page 1 


eminent held on to its flagship 
Wandsworth and Westminster 
councils, but Labour now con- 
trols 17 of the capital’s 32 bor- 
oughs against the Conservatives' 
four. The Conservatives had 
nationwide losses of 429 seats. 

The result in Scotland was still 
more damaging. The Conserva- 
tives were driven into fourth 
place behind Labour, the Scottish 
National party and the Liberal 
Democrats. 

As the final results Indicated 
the Tory share of the overall vote 
had slumped to 27 per cent - the 
same as the Liberal Democrats - 
Mr John Carlisle, a maverick 
Tory MP, said he was ready to 
stand in an autumn leadership 
contest 

Other rightwing Conservatives 
said they had already collected 


the necessary 34 pledges from 
parliamentary colleagues to trig- 
ger such a contest 
But in a blunt warning that he 
would not be driven from office 
by opponents in his own party. 
Mr Major said he would fight off 
any challenge. Speaking outside 
10 Downing Street before joining 
the Queen for the formal opening 
of the Channel tunnel, he dis- 
missed Mr Carlisle’s threat 
The prime minister pledged a 
Conservative fightback in the 
poll Tor the European Parliament 
and predicted a backlash against 
his party's dissidents during the 
campaign. It would not forgive 
“anyone who stands on the side- 
lines or utters a discordant note". 
Asked how he would respond 
to any challenge, Mr Major 
responded: “If anybody chooses 
to engage in that fight they will 
find me standing there waiting 


for them.” He added: “I will meet 
a challenge whenever it comes.” 

Cabinet colleagues also sought 
to shore up the prime minister's 
position with pledges to unite 
around the the government's 
manifesto for the June 9 election. 

Mr Michael Portillo, the right 
wing Treasury minister at the 
centre of a cabinet row earlier 
this week over Europe, insisted 
there was no question of a drive 
to oust Mr Major. Mr Michael 
Heseltine, widely regarded as the 
most likely successor if Mr Major 
fell, also called for an end to spec- 
ulation over the leadership. 

The prime minister could take 
same comfort from an apparent 
split on the Eurosceptic right 
over whether he should be top- 
pled Two former cabinet minis- 
ters - Mr Kenneth Baker and Mr 
Norman Lamont - publicly stood 
out against a contest 


Bonds fall on 
rate fears 


Continued from Page 1 


announcement could come as 
early as next week. 

On Wall Street, many traders 
were disappointed that the Fed 
had not acted immediately in 
response to the April jobs figures. 
The selling of bonds intensified 
after midday when it became 
clear that the Fed would not be 
raising rates during that session. 

The dollar rose during the 
morning in expectation of an 
interest rate rise but fell back 
later as the heavy losses on Wall 
Street stifled foreign demand for 
dollar assets such as US stocks 
and Treasury bonds. By 1230pm, 
the dollar was down almost half 
a pfennig at DM13620 and virtu- 
ally unchanged against the yen 
at Y102.60. 



the lex column 


A local difficulty 


I Since its first reaction was to rise, the 
UK equity market was evidently 
unperturbed, by the local election 
results. Its greater concern is the 
trend in US markets where yesterday's 
: jobless figures and worries about the 
dollar suggest another round of mone- 
tary tightening is due. With long dated 
US Treasury bonds trading at a yield 
as high as 73 per cent yesterday and 
Wall Street equities heading lower, the 
short-term risk to the UK market 
looks considerable. Perhaps because 
the political situation is so difficult to 
fathom, investors may feel tempted to 
ignore the local election results. A pro- 
longed period of political uncertainty 
would be unhelpful just the same. 

A successful challenge to Mr John 
Major need not change the basic 
thrust of economic policy. The divi- 
sions within the party are more to do 
with Europe, and the chances are that 
any new leader would have little 
choice but to continue driving the bor- 
rowing requirement lower. The 
greater, uncertainty concerns mone- 
tary policy. If a leadership challenge 
in the autumn is possible, there is 
very little chance of interest rates 
befog raised before then, even if M0 
money supply growth continues to 
race ahead. 

For the same reason, sterling is left 
unprotected. The currency has already 
shown signs of weakness in the back- 
wash of the dollar’s troubles. Further 
falls would inevitably upset the gflts 
market too. Gilts shed 13 points yes- 
terday, and the yield on index-linked 
paper is again uncomfortably dose to 
that on equities. Shares cannot ignore 
that indefinitely. 


Hong Kong 


Hang Seng Max f 000) 





1993 

Source: Damstroam 


of FFr8 were chosen, 750m new shares 
would be created - or more than four 
for every existing share. The potential 
dilution is even greater when Euro 
Disney's plan to issue all shareholders 
with warrants is taken into account 
Though the company's share price 
fell a further 2 per cent to FFttl 1.65 
yesterday, it is hard to see why it 
should hold at even this shrunken 
level Euro Disney could move mod- 
estly into profit in 1996. But earnings 
growth will be restrained as interest 
payments to banks and royalties to 
Walt Disney, the 49 per cent share- 
holder, kick in again from 1998. Even 
if good profits materialise at the start 
of the next century, they will have to 
be shared between around lbn shares. 


UK insurance 


The falling rate of repossession is 
good news for hard pressed home- 
owners and the insurance companies 
which sold them mortgage indemnity 
policies. That will he a particular 
relief to Sun Alliance and Royal Insur- 
ance, which reports first quarter fig- 
ures next week. Evei allowing that 
recent figures have been flattered by 
changes in county court procedures, 
the trend of repossessions is clearly 
downwards. Lower mortgage interest 
rates are the main reason, although 
the first signs of rising house prices 
might also he making lenders less 
Tnnlmed to step fo. 

Yet rising house prices may not be 
universally good news for the insur- 
ers. With prices still 30 per cent below 
the peak in some areas - and repos- 
sessed properties selling for less - 


lenders are not wholly protected from 
loss by mortgage indemnity insurance. 
If prices rise to the point where insur- 
ance companies are footing the whole 
hill, building societies and banks will 
have a greater incentive to repossess. 
That trigger point may not be re ached 
until next year, by which time interest 
rates could again be rising. 

Mortgage lenders have to consider 
the potential cost of damaging public- 
ity. Big lenders will not want to move 
the housing market against them by 
releasing cheap stock. But it is too 
early to be sure that the problem is 
over. Aggregate claims reserves of 
£1.75bn across the insurance industry 
look adequate, but only if there is no 
marked deterioration in the trend. At 
least with other lines of business now 
delivering exceptional returns, insur- 
ers could afford quietly to top-up 
reserves without disappointing the 
market on profits. 


Euro Disney 

The prospects for Euro Disney 
shareholders go from bad to worse. 
Not only were revenues for the half 
year to the end of March down 12 per 
cent on the comparable period of last 
year, mainly as a result of a 6 per cent 
fall in admissions. It also appears that 
shareholders are going to suffer even 
heavier dilution than previously 
feared in the theme Paris’s forthcom- 
ing FFrtbn rights issue. 

The new shares now seem likely to 
be sold at under the FFr10 price that 
the market had been envisaging. The 
share par value Is being cut from 
FFr10 to FFr5, and it looks as if Euro 
Disney is proposing to offer the shares 
at the deepest of discounts. If a price 


Hong Kong 

The Hang Seng index fell 31 per cent 
between its peak in January and its 1 
low for the year on Wednesday. That 
fall seems to discount a lot of bad 
news, some of which may not actually 
materialise. The market is assuming 
that the US will renew China’s most- 
favoured nation status. Its bigger 
local worry has been the property 
market 

Since the government started hying 
to increase the supply of residential 
property by increasing land sales and 
easing planning restrictions, prices 
have fallen some 5 to 10 per cent The 
commercial property market still 
looks expensive. But in both cases 
there is still a good chance of a soft 
landing. Hong Kong property tends to 
be in structurally short supply. 
Although Unisys has decided to pull 
back from the territory on the grounds 
that rents are too expensive, most 
companies seriously interested in trad- 
ing with China regard a Hong Kong 
presence as essential, and there is a 
continuing dearth of prime quality 
office space. Moreover, Hong Kong’s 
currency peg to the US means mone- 
tary policy is likely to remain loose for 
local conditions, even if real interest 
rates have become slightly less nega- 
tive. 

The stock market's bounce yester- 
day suggests that Hong Kong equities 
have become at least a trading- buy, 
especially since there are signs of con- 
structive talks resuming on the air- • 
port project. Consensus forecasts for ' 
earnings growth approaching 20 per 
cent this year put the market on a | 
prospective p/e of less than 12 times. J 
And for Japanese buyers starting with 
a strong Yen the market must look i 
doubly cheap. ! 



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I 



After experiencing the weirdness and confusion of Bolivia's drugs 
culture, Nicholas Woodsworth joins a patrol on the trail of . . . 








Rying low over the palm traps and jungle surountflng the base, heflcopters shuttled back and forth with msn and (notarial PanoiPictww 


U S President Bill Clinton 
came to power on the prom- 
ise that he would r&stitch 
America’s badly-worn social 
fabric. Health, education, 
racial tension, the under-class - just about 
any subject to do with the declining qual- 
ity of life in America draws fire. But none 
so excites the lie of the average citizen as 
that of law and order and a problem that 
lies at the heart of American street vio- 
lence - drugs. 

Since 1988, the US government has 
annually spent more than SiQbn. on drug 
enforcement programmes. It sounds a lot, 
but it has done little to stem America’s 
appetite for snorting, injecting, smoking or 
ingesting illegal substances imported from 
the four corners of the world. Today, 
America's 11m users spend five times as 
much on drug consumption as the govern- 
ment spends trying to stop them getting 
hold of drugs in the first place. 

Bill Clinton has recognised that the real 
solution to the problem lies in Americans 
themselves - more effort is now being put 
into rehabilitation, education and commu- 
nity programmes aimed at reducing drug 
demand domestically. 

But at the same time, his administration 
has adopted new tactics in its war against 
the global drug trade. Of the record $13bn 
requested for the Presidents 1995 National 
Drug Control Strategy, 60 per cent is ear- 
marked for “supply reduction programs” - 
instead of going after drugs and dealers 
upon arrival in the US, the emphasis is 
now on suppressing the drugs trade at 
source. 

□ □ □ 

I had just left the Bolivian mountain 
capital of La Paz, where I had seen some- 
thing of the drug-trafficking life. I had had 
enough drug weirdness, enough confusion, 
intrigue, paranoia, enough Bad Guy 
behavior. Here, in the Chapare district of 
lowland Bolivia. 1 hoped things would be 
more straightforward. I was going to go 
patrolling with Umopar, a para-military 
jungle unit trained and equipped by the 
DBA, the US Drug Enforcement Agency, 
to eliminate the Bolivian drug trade. 

But nothing In Bolivia is as simple as it 
seems. Matters in Chapare seen from the 
side of law and order turned ont to be no 
less odd than seen in La Paz from the 
point of view of the drug villains. 

In fact things have gone so far awry in 
Bolivia that in popular opinion, roles have 
become bizarrely reversed: the 35,000 
Indian families who cultivate coca in Cha- 
pare are innocent and downtrodden vic- 
tims, while Umopar and their foreign men- 
tors. the DEA, are evil bullies bent on 
social fragmentation. 

Prom a desk in Washington, neat and 
innocuous-sounding policy initiatives like 
“supply reduction" may sound rational 
and entirely justifiable. When issues have 
become as confused on the ground as this 
one, however, policy execution is an 
entirely different matter. As a result of a 
forceful new coca eradication campaign, 
Chapare erupted in bloody violence the 
day after I arrived. 


Sitting in the office of Commandante 
Luis Caballero, head of the Mobile Rural 
Patrol Unit - or Umopar. as its Spanish 
acronym has it - L could see why the 
Commandante was loath, at present to let 
me accompany one of his groups. Things 
were not going welL 
Outside in the Umopar compound sat 
armoured cars with smashed windscreens 
and burned-out military transport trucks 
dragged back from the day’s action. 

On one side of a quadrangle of barracks 
were piles of primary cocaine processing 
mate rial — sa cks of lime, jerry cans of 
kerosene, bottles of sulphuric arid. On the 
other, a large squad of soldiers was being 
issued with riot gear - helmets, batons, 
shields and tear gas cannistere. 

Flying low over the palm trees and jun- 
gle surrounding the base, helicopters shut- 
tied hack and forth with men and mate- 
rial. All over Chapare roads were blocked. 


goverment buildings were being destroyed, 
and spear-wielding, dynamite-throwing 
peasants were clashing with Umopar 
troops. 

The Commandante, though, was putting 
a positive face on it A well-built, thick-set 
man with a heavy moustache, he wore a 
black T-shirt and a pistol at his belt. 
Emblazoned on his chest was the Umopar 
logo - a crossed dagger and M-16 rifle, and 
the legend Leopardos. 

“The new campaign is achieving 
results," he asserted. “In one month the 
Leopards have destroyed 255 pozas - the 
coca leaf maceration pits in which the 
cocaine refining process begins. Also 246 
kilos of cocaine paste, and 755 litres of 
agua rica - liquid cocaine concentrate. It 
is the biggest operation we have ever 
mounted." 

But, the Commandante assured me, now 
was no time to go out looking for pozas - 


the cocaleros, or coca leaf growers and 
processors, were on the war path. To con- 
vince me, he led me across the heat-baked 
quadrangle to a room full of objects seized 
from Chapare’ a “ant army" - the hun- 
dreds of men, women and children who 
surrepticiously carry cocaine out along 
trails and forest tracks. There were narco- 
shoes with hollowed out-heels, narco-bi- 
bles with no text between Genesis and 
Exodus, even stuffed and sewn-up narco- 
chickens. 

But the Commandante wanted to show 
me a bomb, a five-gallon, cooking-oil tin 
filled with glass, stones and explosives, 
attached to 100 yards of wire with a car 
battery at the other end. 

"It is primitive but effective." he said. 
The traffickers like to surprise us on jun- 
gle paths. They are well organised, have 
better arms and better communications 
than we. Worst of all, we do not know who 


they are - often the little children sitting 
by the roadside are not as innocent as 
they look - they are narco-lookouts." 

Narco-politicians in La Paz, narcochil- 
dren in Chapare . . . was there nothing in 
this part of the world to which that prefix 
could not be attached? The Commandante 
persuaded me to wait until things calmed 
down and I went off to find out about 
Chapare's narco-economy with Jenny 
Ortiz of the United Nations Drug Control 
Programme. 

a □ □ 

The UNDCP is the United Nations’ big- 
gest undertaking in Bolivia: it is devoted 
not to drug enforcement and eradication, 
but to alternative development - to creat- 
ing economic opportunities other than 
coca cultivation for the I n dia n families of 
Chapare. 


In the last few years all sorts of occupa- 
tional schemes, as well ns road, electricity 
and water supply networks, have been ini- 
tiated by the UN. Banana, citrus, tea. cas- 
sava, aromatic plant and dairy projects 
have all been established. None have pro- 
vided a real solution. The simple fact 
remains that with four coca harvests a 
year bringing in between $1,200 and $1,500 
a hectare, there is no peasant activity In 
Chapare as profitable as coca cultivation. 
In spite of all eradication efforts, last year 
saw a net increase in coca cultivation. 

I had lunch with Jenny Ortiz at DoMa 
Gaetano's restaurant, a palm-frond shack 
on the edge of the village of Chimore. 
headquarters for both Umopar and the 
UN. DoMa Gaetana is an enormous Indian 
woman with long black braids, gold-fill- 
gree teeth, and a liking for birds and flow- 
ers; two brilliant green parrots sat in the 
orange trees beside the shack and watched 
us as we ate. None of this exotic colour, 
though, did much to hide the surrounding 
poverty. Chapare is the poorest region in 
the poorest country in Latin America. 

Jenny no more believes in the benefits 
of cocaine than does Bill Clinton, but after 
years spent working in Chapare she under- 
stands the peasant point of view. 

"You don't pose moral questions on an 
empty stomach," she said. “There are few 
genuine markets for most of the products 
we are trying to persuade the peasants to 
grow. In Ibirgasama. where Umopar heli- 
copters fired machine guns over the heads 
of 40,000 demonstrating peasants yester- 
day, Scandinavian Pentecostals built a 
50.000 litre-a-day dairy - all we have to do 
now is persuade Bolivians to keep cows 
and develop a taste for milk. We are trying 
to offer a better life to peasants, but sur- 
vival now means much more to them than 
development over five years. The problem 
remains the high price offered for coca." 

Down the road, 200 yards from DoMa 
Gaetana's, the focus of activity in the cen- 
tre of Chimore is the tin-covered coca mar- 
ket. Here coca leaves, piled in great 
mounds or packed in 100 pound bags, are 
bought and sold daily under the noses of 
passing Umopar patrols. Everywhere you 
drive in Chapare you find vast stretches of 
roadside coca fields and harvested leaves 
being dried outside village houses. There 
is not the slightest attempt at conceal- 
ment 

If poverty gives impetus to the cocaine 
trade, so does the coca leafs confusing 
legal status. Coca has been chewed as a 
stimulant by Andean Indians for thou- 
sands of years. Its use in Spanish colonial 
times was encouraged in order to exact the 
maximum work possible in fields and 
mines. Its use more recently has been vig- 
orously defended by powerful domestic 
interests seeking profit or political sup- 
port. Most Bolivians regard coca as a val- 
ued part of their cultural heritage; some 
still speak of the "sacred leaf*. 

Today coca is both legal and illegal. In 
1988 the Bolivian government, under inter- 
national pressure, passed a law setting 
aside 12.000 hectares of coca for legal use - 


Continued on Page vm 







The Long View / Barry Riley 

The neutral zone 


CONTENTS 

Finance A Family : Lloyd’s plans to 

unlock value for members 

111 

Fashion : A glorious summer 
wardrobe for just £27.95 

DC 

Travel: On the trail of whisky 
galore 

xn 

Food : A beer and a sandwich in 
Manhattan 

XIII 

Sport: Put to the sword on the 
village green 

XVI 

Books : An astrological guide to the 

money markets 

XVII 



Dien Blen Phu: a visit to the French 
fortress forty years after its fall -XI 


Arts 

XIX, XX 

Books 

XVR 

Bridge, Chen, Croeowwd 

XXI 

Fashion 


Finance a the Famly 

n-vn 

Food & Drink 

XU 

How To Spend H 

a 

OomMe Lawson 

XXB 

Markets 

B 

Jamas Morgan 

xxa 

Motoring 


Puupacltims 

X^3G 

Private view 


Sport 

XVI 

Mfcftael Thompson-Koel 

XXH 

Travel 

xn 

TV s. Hsiao 

XXI 


Now the squeeze is on 
in earnest. Gilt-edged 
yields rose to 8% per 
cent at one stage this 
week. This, if you 
believe in the govern- 
ment’s central inflation 
target of 2Vi per cent or 
less (apparently tew do), 
implies a real long-term 
interest rate of almost 6 per cent UK 
equities yield only around 3.7 per cent, 
and are wilting under the competition. 

Domestically the local government 
elections have not helped, by providing 
a reminder of John Major’s frailty. With 
another month of Tory tensions to 
come, ahead of the elections for the 
European Parliament, the political 
background is not going to get any 
easier. Michael Portillo’s sneers at the 
single European currency have served 
to emphasise just why sterling tends to 
move with the dollar rather than the 
D-Mark and the other continental cur- 
rencies. In the midst of a developing 
dollar crisis, sterling may be a side- 
show. but one where casual passers-by 
are tempted to knock off a coconut or 
two. 

New readers start here. Last year the 
Bank of England eagerly sold £14bn 
worth of gilts to foreigners as yields 
tumbled from 9 to 6’A per cent. Most of 
those foreigners were feeding off a bond 
market bubble created by the US Fed- 
eral Reserve which was pumping unlim- 
ited quantities of dollars at 3 per cent 
into the global financial system. Now 
the Fed is cranking up interest rates 
and the bubble Ins hurst 

All bond markets around the world 
are in disarray but gilts have suffered 
worse than any other major national 
market: yields on 10-year German 
bunds. For instance, have only risen by 
90 basis points (hundredths of a per 
cent) since the beginning of the year 
against 210 basis points on 10-year gilts 
(and 130 basis points on US Treasuries). 
An important reason is that after years 
of relatively high Inflation and much 
better equity returns there are few sub- 
stantial domestic buyers of sterling 
bonds: private individuals by and large 


do not buy them, and nor do pension 
funds, which bought only £2.7bn out of 
£50bn issued in 1993. 

Memo to Eddie George, governor of the 
Bank of England: Urgent discussions 
should be held with the Department of 
Social Security, now finalising a White 
Paper embracing many of the recom- 
mendations of last year's Goode Com- 
mittee Report on pension law reform. 
This could be a heaven-sent opportu- 
nity to impose a really tough minimum 
solvency standard on pension funds, 
forcing them to buy more gilts. 

Another reason for the colly-wobbles 
in the gilt market is that there are 
ominous signs of the onset of an 
old-fashioned sterling crisis; already 
sterling has softened by 3 per cent so 
far this year, in terms of its trade- 
weighted index. 

The UK is cyclically out of step with 
its main trading partners in continental 
Europe, leading to strength in imports 
but weakness in exports, and the 
monthly visible trade gap appears to be 
r unning at more than £lbn. Meanwhile 
three-month sterling interest rates offer 
no premium over continental rates at 
about 5V4 per cent, and although there 
is still a margin over three-month dol- 
lar rates of just under 4‘A per cent, this 
may not last for long. 

T he dollar, after all, has its own 
big problems. Another rescue 
effort was mounted by the 
mainr central banks this week 
as the beleaguered US currency threat- 
ened to crash down through the 100 yen 
level Whereas Alan Greenspan, chair- 
man of the US Federal Reserve, appears 
to have had in mind a leisurely time- 
table for raising short-term interest 
rates a quarter of a percentage point at 
a time, the recent pressure on the dollar 
must have added some urgency to the 
promised transition from monetary per- 
missiveness to what Greenspan has 
unsperifically referred to as a “neutral" 
stance. 

What does neutrality mean here? 
Many economists believe that a 5 per 
cent Federal funds rate would be a rea- 
sonable target (the current 3% per cent 


rate is expected to rise at least to 4 per 
cent around the time of the Fed’s Open 
Market Committee meeting on May 17). 

But according to David Shaw, invest- 
ment strategist at Legal & General, an 
analysis of the last five US business 
cycles extending back to I960 shows 
that a neutral ratio for the growth rate 
of nominal GDP to the three-month dol- 
lar interest rate has been 1.15. 

Given that nominal GDP is likely to 
grow by about 7 per cent over the next 
year, a three-month interest rate of 6 
per cent is indicated by mid-1995 (equiv- 
alent to a Fed funds rate of perhaps 5% 
per cent). Moreover. later in the eco- 
nomic cycle the Fed is likely to tighten 
its policy further. 

J apan and Germany will be able to 
brush aside these coming rises in 
US interest rates. Their recent 
common problem has been the 
excessive strength of their currencies 
against the dollar. But the UK, unable 
to survive within the European 
exchange rate mechanism, could be in a 
quite different position. 

Traditionally, sterling drifts some- 
where in between the dollar and the 
D-Mark, and the present cyclical posi- 
tion of the UK economy suggests that 
the dollar will have a stronger pull in 
the near term. Only a sharp and unex- 
pected improvement in the UK’s bal- 
ance of payments would avoid the need 
lor some tough decisions on interest 
rates later this year. 

Running deficits can be fun when 
they are easy to finance, but foreign 
creditors tend to have their own 
agenda. While chancellor Kenneth 
Clarke was trying to loosen monetary 
policy in February the turmoil in the 
gilt-edged market was imposing a new 
squeeze which resulted, for instance. In 
a jump in fixed mortgage rates. 

John Major may want to reflect on 
the paradox that although Japanese 
governments and prime ministers come 
and go the yen goes on strengthening 
regardless. On the basis of the markets’ 
reaction to the election results yester- 
day, Major's tell would certainly not be 
viewed with any great alarm. 



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II WEEK-END FT 


ftmatmc^TAL TIMES WEEKENDMA^/MA^9»t 


MARKETS 


London 


BP springs 
a pleasant 
surprise 

Maggie Urry 


Corporate geo^osW abounds 


OMdandawer industrial «ckr, pUbished; acted 1*4 

.. ...i r-- , 3L0 


T he big surprise this 
week came not in 
the ballot boxes - 
the Tory showing 
in Thursday's local 
elections was expected to be 
pretty bad, and indeed it was - 
but in the announcement of 
British Petroleum's first quar- 
ter dividend payment, also on 
Thursday. 

A rise of nearly a fifth, the 
first increase since BP cut its 
dividend two years ago, came 
as a most pleasant surprise for 
a stock market which has 
become bogged down in fears 
about the macnveconomic pic- 
ture. 

The increase underlines the 
fact that dividends have gone 
up by more than expected in 
the latest round of results. 
Mark Brown, equity strategist 
at Hoare Govett, reckons that 
from the results seen so far 
from 80 large industrial compa- 
nies dividends have risen in 
aggregate by 10 per cent, 
which compares to a forecast 
in January of 6 per cent 
This has persuaded investors 
to raise their expectations of 


dividend rises in 1994. Accord- 
ing to the monthly Gallup sur- 
vey of institutional investors 
views, predictions for 1994 divi- 
dend increases from all quoted 
UK companies, have risen from 
4.3 per cent in October last 
year to 7.4 percent last month. 

Growth in dividends ought 
to support the stock market - 
after all the fundamental pur- 
pose in holding shares is to 
receive a cash return. Brown 
puts the corporate generosity 
down to companies not know- 
ing what to do with their 

mounting cash. 

The corporate sector's finan- 
cial position has improved 
markedly over the last few 
years, partly because of rights 
issues, and now companies are 
generating more cash than 
they know what to do with. 

Companies are not, it seems, 
investing more, according to 
the latest CBI survey on 
ii w u s fanwif intentions. So 
is going into higher dividends 
and takeover frfos- 

More bids appeared this 
week, with the emphasis again 
on buying outside the UK. 



• 1 ■ . -4. ■>?- 

pT O Sfwayk 
• : twangs, 

, i . i < i « <)niH mi 1. 1 


-1092 ! - 
SawoK H qwii O owctt 


SmithBline js paying 

$25bn to buy a US drug whole- 
saler, while Wassail, (he con- 
glomerate, is buying a US 
cable maker for $270m, partly 
financed by a rights issue. 

However, the Footsie fell for 
the first half of flifc week to 
3070.5 on Wednesday, a low for 
the year and nearly 13 per cent 
off the peak at the start of Feb- 
ruary. The main wo rr y was the 
narr o w money figure published 
on Tuesday, which showed MO 
had risen by 6L2 per cent in the 
year to April 

This is well above the Gov- 
ernment’s target range of 0 to 4 
per cent for Hue indicator, and 
above market expectations. 
The gilt-edged market took the 
news badly and between Tues- 
day morning and Wednesday 
evening the yield on 10-year 
gflt-a had risen from Just under 
8 per cent to 8.4 per cart. 

Turmoil in the currency mar- 
kets, with the dollar requiring 



HIGHLIGHTS OF THE WEEK 


Price 

yday 

Change 
on week 

1994 

wgh 

1994 

Low 


FT-SE 100 Index 

3106.0 

-19.3 

amp? 

3070.5 

DoBar isicertaMy 

FT-SE Md 250 Max 

3771.0 

-10.1 

4152J3 

37KL9 

Local ejection uncertainty 

Abbey National 

416 

-20 

523 

413% 

Broker "sup rooonanentintlon 

AMotn 

465 

436 

578% 

417 

■ u. .» ■ —a. . . 

mstnuQonai presefR&oons 

BAT teds 

447 

-22)4 

570 

435% 

DoSar concerns 

BP 

403 

+17 

406 

340 

ExceSeot nnuttsASv up 19% 

Boots 

58Z 

+14)4 

601 

504 

Da It AS cute speculation 

British Airways 

416 

-11* 

496% 

399 

April baffle figs dfeppOht 

Ooiataulds 

549 

-27 

580 

470 

Mainmort “aeT 

Dickie (James) 

150 

-13 

173 

95 

Chief executive roducea state 

Eurotunnel Uts 

450 

-49 

665 

448 

Channel Tunnel safely wonfaa - -- - 

London International 

119 

+15 

173 

101 

Bkf spaetdatfoo 

ftoutare 

487 

-44 Vi 

53914 

439% 

State sale 

RoSs-Royoe 

193 V* 

-10 

204 

161 

Co denies It forecast <9v rise 

Sainabuy (J) 

394 

+21 

480 

342 

BZW positive 


concerted central bank support 
did not help. The fear was that 
US cates could rise again to 
hold up the dol te 1 * and this 
would mean UK interest rates 
rising fl gafa Hopes for one last 
quarter point cut in base rates 
were fading Cast this week, and 
money markets are now dis- 
counting a significant rise in 
rates by the year end. 

It is here that there is the 
biggest discrepancy between 
market watchers’ views. On 
the bearish ride are the Htpn of 
Nick Knight, strategist at 
Nomura International. Having 
been a superbull nntn the mar- 
ket turned, Knight is now con- 
cerned that base rates could be 
rising sharply. 

The stock market was 
largely ignoring the local gov- 
ernment elections, rising on 
both Thursday - thanks to BP 
- and Friday - until a weak 
opening cm Wall Street dragged 
It down to its opening level - 
aHhmng h not nifficiantly to Off- 
set Tuesday and Wednesday's 
falls. But Knight took the 
results to mean that the Tory 
government will now have to 
hold off a general election until 
last po ssi ble tiwp J spring 
1997. 

If that is the case, he argues, 
the government needs to 
tighten policy now - by march- 
ing interest rates up - so that 
there is scope to loosen again 
later by marching rates down 
before the el ection 

Without higher interest 
rates, and possibly even with 
'than, he says, sterling will 
/y»»ra> under pressure. And that 
- J would push gilts and equities 
lower. At best, he believes, the 
Footsie will be little changed 
over the summer months , and 
it could go much lower. That 
being the case, his advice is to 
sell and put the cash on 


deposit for a higher return. 

An opposing view is taken 
by Michael Hughes, managing 
director of economics and 
strategy at BZW. He sees the 
local as largely irrele- 

vant, unless they scare interna- 
tional investors. Anti he says 
there was a better tone to the 
market this week with buyers 
coming in on weakness in the 
Footsie. 

He believes US interest rates 
win not rise beyond 5 per cent 
and UK inflation will stay 
below the 6 per cent threshold 
at which it has, in the past, got 
out of hand. With the earning s 
yield at 7 per cent and gilt 
yields above 8 per cent - a 
growth rate actuaries often 
apply to pension fund liabili- 
ties - he is comfortable with 
the level of the equity market 
now. 

IBs cancan is more that the 
economic r ecovery is already 
nearing its peak, with growth 
in 1995 perhaps no stro n ger 
than in 1994. If there is a nega- 
tive for the market, he asserts, 
it is that growth might faO, not 
that interest rates will rise. 

There was no sign of a falter- 
ing of corporate profit recovery 
in this week's results though. 
Aside from Bp’s healthy profit 
rise, Tate and Lyle, the sugar 
and sweeteners group, 
increased profits over 20 per 
cent in its first half year, while 
BAT Industries, the tobacco 
anti ins u rance giarit lifted first 
quarter profits by a fifth as 
wdL 

Even Body Shop Interna- 
tional, the toiletries and cos- 
metics maker and retailer, .con- 
founded its critics with an 
underlying rise of a third in 
profits for the year. 

But it will take more than 
one of Body Shop’s potions to 
restore John Major's fortunes. 


Serious Money 

Democracy rears 
its head at Lloyd’s 

Gillian O’Connor, personal finance editor 


D emocracy at 
Lloyd's sounds like 
a contradiction in 
terms. But that 
goes not make it any the less 
welcome. This week’s plan to 
first enfranchise the Names, 
and then examine ways they 
re»n sell their membership 
rights, is long overdue (see 
page IHk 

Previously, although the 
Names have put up the capital 
anti shared the underwriting 
profits - or, more recently, 
loses - they have had none of 
the other rights of ownership. 
All the power has been with 
the agents who manage the 
underwriting syndicates. Some 
have notoriously abused this 
power. 

What is more, running an 
underwriting agency has cre- 
ated a valuable asset for the 
managers; participating in the 
actual underwriting syndicates 
has not. It is a rather neat 
inversion of the normal roles 
of capital and labour. 

The blueprint for change is 
designed to remedy imbal- 
ance. The one obvious objec- 
tion so far Is that it comes too 
late to be of any help to the 
Names who have been rained 
by their losses. 

Other niggiy problems are 
bound to arise as more detailed 
proposals are hammered out 
Names and managers alike will 
argue that they should have a 
bigger slice of toe cake, what- 
ever that total cake might 
prove to be worth. The Names 
wifi rfafrn that it is their capi- 
tal which is at ride. The man- 
agers wifi argue that ft is their 
skin that keeps the business 
going. The feet that five syndi- 
cates already have sacked all 
their Names, while they still 
had the power to do so, is 
hardly an encouraging portent 
Many individual Names are 
unders tandab ly embittered by 
now, and need reassuring that 
they are not going to be eased 
godly out of their syndicates 
in favour of corporate mem- 
bers, whom many agents pre- 
fer. That would leave them 


unable to take advantage of a 
better underwriting climate to 
earn back some of the money 
they lost in the bad times. 

The latest proposals should 
go a long way to assuage their 
fears. Members can appeal 
against being sacked by their 
syndicates and have preemp- 
tive rights to their share of any 
increase in business. 

Underwriting should also be 
a hit less hair; in future. The 
idea of weighting capital 
requirements according to the 
riskiness of a syndicate’s busi- 
ness seems painfully elemen- 
tary. The Financial Services 
Act has long demanded that 
advisers know their clients and 
do not put vulnerable people 
into unsuitably risky invest- 
ments. Some Lloyd’s agents 
appear to regard such scruples 
as wimpish, bat risk ratings 
flhroiiri do the job for them . 

If all goes well, being a Name 
at Lloyd’s should be rather less 
of a white knuckle ride in 
future. But modi of the inter- 
est in toe new blueprint inevi- 
tably wifi focus on its sugges- 
tions for golden handshakes: 
selling membership rights. 

S ome people are arguing 
already that this part 
of the proposal is just 
pie in the sky - a cyni- 
cally unrealistic baft designed 
to keep recalcitrant Names 
aboard while they can be use- 
ful. But let ns give Lloyd’s the 
benefit of toe doubt just one 
more time. 

What would membership be 
worth? The market's losses 
have been so monstrous, and 
its reputation is so tarnished, 
that ft 13 hard to imag ine mem- 
berships in even the more prof- 
itable and reputable syndicates 
fetching a price in fine with 
the size (ft their business. And 
anyone in a poor syndicate will 
get only a pinchbeck hand- 
shake when he leaves. 

But the biggest bugbear is 
likely to be the very limited 
market in which members can 
sell their rights. Lloyd's itself 
says that it is unrealistic to 


expect the amount of transfer 
business to justify a proper 
market-maker and reckons 
that periodic auctions, in 
which all members get the 
same price, look the best bet 
Not a very alluring prospect 

But at least Uoyd's is head- 
ing In toe right direction for a 
change. 

a □ □ 

Any building society member 
who was dreaming of a C&G 
bonanza from one of toe other 
societies will have had a cold 
shower of reality this week. 
The Northern Rock/North of 
En gland merger looks set to 
bring North of England mem- 
bers an average of £50 apiece 
compared with the £650 they 
might have got if there had 
been an outside bid for the 
society. Northern Sock mem- 
bers get nothing. 

The proposal is a useful 
reminder of two things. First, 
not afi building societies are 
equal - any more than all 
Lloyd’s syndicates are equaL 
Efficient and profitable societ- 
ies, such as C&G, may be able 
to find suitors who win pay a 
handsome bride price. Less 
ftfffcjWnt, less profitable societ- 
ies will not C&G's expense 
ratio is well below average at 
28 per emit North of England's 
is a lofty 54 per cent 

Second, building society 
members are unlikely to get 
the best price unless their 
managements secure it for 
them. The idea of soliciting a 
bid does not seem to have 
occurred to the managers of 
Northern Rock or North of 
England. The two societies 
explain the deal as “a tradi- 
tional building society merger 
about traditional building soci- 
ety values." 

True, many members do 
seem to value the societies’ 
mutual status. But some would 
have sold their birthright hap- 
pily so long as the mess of pot- 
tage was big enough. The con- 
cept <ft mutuality can no longer 
be taken for granted - except 
by building society and fife 
company managers. 


AT A GLANCE 


Finance and the Family Index 


Lloyd's plan for Names — — lb 

New issues ....... — IV 


Gar insurance on the Continent V 

Pensions: should you opt out? .VI 

Fee-based advisers: R- Harris _.VH 

House prices Repossession orders 


Rret-ttms Buyers Index (1983*100) >000 



201 i-1 i-. - . 10 L 1 1 L 1 LJ 

Apr 1983 1994 Apr 1908 90 91 92 03 9* 

Sowck HaHax Sowco: Lord Chwicafcx*s Department 


Building societies 
disagree on house prices 

The two largest buHdlrtg societies, while agreeing on the size of 
house price movements In April compared to the previous month, 
disagreed on their direction. Halifax's seasonally adjusted figures 
showed a drop of 02 of a percentage point white Nationwide 
reported a 0J2 point rise. HaTifax also reported that prices paid by 
first time buyers were half a percentage point higher last month, 
following sharper rises of 1.6 point and 1.3 point in February and 
March. 

Figures from the Lord Chancellor's Department showed that 
orders for mortgage repossession have fallen to their lowest level 
since 1989. County couts in England and Wales made 17,522 
orders for possession in the first quarter of the year compared 
with 23,646 in the test quarter of 1993. The number of actions 
commenced also fell sharply. 

Gartmore change charges 

Gartmore has increased the Initial charge on its personal equity 
plan from 2 per cent to 3 per cent end dropped the early 
withdrawal charges It Introduced two years ago. The annual 
charge remains 1.S per cent (apart 12S per cent on the single 
company Pep). Gartmore is also offering Investment across a 
range of Its fends through its Global Pap for a £3,000 minimum. 
One quarter of an annual Pep allowance can be placed In funds 
which are outside the EC. 

Directory of unit trusts 

A new directory of unit trusts has been published by Professional 
and Business inf o rm a tion. The Unit Trust industry Review and 
Directory 1994 lists all the fund management groups with 
information on their funds and performance comment There are 
industry statistics which include sales and distribution figures. 

The directory costs £375 (£280 to past buyers) from PBi, 

Munro House, 14 St Cross Street, London EC1N 8YY and Is 
available in most university and main libraries. 

Smaller companies slip back 

Smafler company shares slipped back slightly this week. The 
Hoare Govett Smafcr Companies Index (capital gains version) 
test 0.3 per cent to 1753-02 over the week to May 5. 

Key questions for an adviser 

NEXT WEEK... Joanna Slaughter uriB end her series on 
fee based financial advisers with an article drawing together 
her findings and advfetng readers on what to look for, mid 
what questions to ask, when choosing a fee-based adviser. 


Wall Street 


T raders drop the baseball and hit the dollar 


I t has been one of those 
rare weeks when traders 
and investors on Wall 
Street have to turn away 
from toe charts of bond yields 
and interest rates, the tables 
of corporate eanrizigs, and the 
latest baseball scores, and 
start paying attention to some- 
thing they spend most of the 
year happily ignoring: the dol- 
lar. 

Unlike in the UK, where the 
value of sterling is closely 
watched because the economy 
Is seen as vulnerable to 
Imported inflation, in toe US, 
currency rates are rarely of 
interest to the stock market 
Except, that is, when toe dol- 
lar moves In such a 
that the Fed Is forced to lead 
17 other central hanks Into toe 
international foreign exchange 
markets to buy dollars. When 
the Fed has to ask toe Bank (ft 
Moldova for help in defending 
tote US currency. Wall Street 
sits up and takes notice. 

Admittedly, investors are 
not so much worried about 
what tbe recent decline In toe 
value of tbe dollar against the 
D-Mark and the Yen might do 
to the profits of companies 
with overseas earnings to 
repatriate, as they are worried 


Pwf .Joms lad MbW toira g a . . 



about what a desperate Fed 
might do to get tbe groggy dol- 
lar bade on its feet 

Far if the concerted efforts 
of 18 central banks, and toe 
application of what one 
assumes must have been bil- 
lions of dollars, could not stem 
the US currency’s decline, 
what can the Fed do to achieve 
its aim but raise US interest 
rates one more time? And if 
toe Fed is forced into raising 
rates to defend the dollar, ft 
must know that another quar- 
ter point on the federal funds 
rate would not do the trick. 

In all likelihood, the dis- 
count Tate - untouched at 3 
per cent during recent mone- 
tary policy tightening - would 
have to go up, and probably by 
as much as 50 basis points. 
Anything less, and toe foreign 
exchange markets are unlikeiy 
to start taking the US govern- 
ment’s talk of defending tbe 
dollar seriously. 

The only problem with this 
scenario is that a quick hike in 
toe discount rate could inflict 
another devastating blow on 
the stffi vulnerable US bond 
market, and a fresh sen -off of 
bonds could trigger another 
sharp decline in the equally 
vulnerable stock market. From 


the dollar to tbe discount rate 
to bond prices to share prices, 
the dominos would tumble. 

The great irony in all of this 
is that one of the reasons toe 
US government is unhappy 
about toe dollar’s fall is the 
Impact it has had on the bond 
market - foreign investors 
have been reluctant to buy 
Treasury bonds for fear of see- 
ing the value of their invest- 
ment undermined by a depre- 


1094 


dating dollar. Yet, if the Fed 
raises rates to boost the value 
of the dollar, bond prices will 
probably drop, which win only 
make toe market more unat- 
tractive to overseas Investors. 

No one, of course, ever 
suggested the job of a central 
banker was easy, but the peo- 
ple at the Fed must be 
extremely unhappy that the 
delicate task of holding off 
Inflation w ith out under mining 


the economic recovery has 
been made that mnch harder 
by the dollar’s travails. 

However, if the Fed has been 
hesitating over a dollar- 
inspired rate increase because 
of what It might do to the 
bond and stock markets, its 
hand may be forced into 
another tightening once yes- 
terday's April employment 
report has been folly digested 
by the policy makers. 

Anticipating a rise in Md- 
from payrolls during April of 
somewhere dose to 195,000, 
Wall Street analysts were 
shocked yesterday when toe 
Labor department announced 
that payrolls had jumped by 
267,000 last month. The drop 
in the national nnwnpl i)iyiwi4 
rate from 6.5 per cent to 8.4 
per cent also caught toe mar- 
kets by surprise, as did the 
upward revision in the already 
extremely strong March pay- 
roll numbers. 

The reaction from the bond 
market was instantaneous - 
the price of the benchmark 80- 
year bond dropped over 2 
points, and the yield climbed 
to more than 7J5 per cent - 
and indicated that investors 
believed the data would push 
the Fed into another interest 


rate increase. Share prices 
quickly foDowed hands town- 
yesterday. and by midday It 
appeared likely that the Fed 
would tighten policy again - If 
not immediately, then proba- 
bly some time around toe May 
17 meeting of the central 
bank's Open Market Commit- 
tee. 

If the employment report 
spooked toe stock and bond 
markets, it at least allowed 
traders and investors to forget 
temporarily their worries 
about the dollar. After an ini- 
tial burst of activity, following 
toe release of the jobs figures, 
trading on toe currency mar- 
kets in New York was rela- 
tively quiet, with the dollar 
slipping slightly from its over- 
night levels. Any support fee 
c ur re n cy might have received 
from the Ukriihood of an Inter- 
est rate increase was offset by 
the unwillingness of foreign 
investors to buy dollar assets 
such as VS stocks and bonds. 

Patrick Harverson 

Monday 3701.02 + 19.38 

Tuesday 3714.41+ 13^3 

Wednesday 8697.75- 16.66 

Thursday 3695.97 - 01.78 

Friday 


I f you are a widow or an 
orphan, the shares of 
most banks are not an 
obvious thing to buy. 
Their cyclical swings in earn- 
ings and habit of wasting any 
capital they manage to accu- 
mulate on disastrous pur- 
chases in far-flung parts of the 
world do not help toe cautious 
investor sleep soundly at 
night 

One bask in which toe pru- 
dent orphan might invest 
slipped briefly into the public 
eye this week. Bank of Scot- 
land, toe smallest and most 
discreet of toe clearing banks, 
published its annual results, 
more than do ubling pre-tax 
profits to £268-7m and raising 
Its dividend by 105 per cent 
Bank of Scotland has been a 
connoisseurs' bank for about a 
decade, since its senior direc- 
tors decided to grow by lending 
money outside Scotland, estab- 
lishing 21 branches south of 
the border. They have since 
managed to expand their mar- 
ket share of lending, even last 
year when loan demand was 
slack. 

Lending money does not 
sound too radical a strategy for 
a bank, but it has become 


The Bottom Line 


Bank that stuck to banking 


Bwtk of Scotland 

Sftao.prfeereiaiaTOiollhoFT-SEAAB^haretadtee ' 

Vto. 



long-tom dividend growth. 


increasingly unusual as others 
have suffered from bad debts 
as a result of the last recession. 
They have instead tried to 
raise income from other 
sources such as Insur- 

ance and savings products. 

But in spite of suffering from 
some poor lending - notably to 
property companies in toe 
south-east - Bank of Scotland 
has retained its faith hi bank- 
ing. It has steadily expanded 
its balance sheet - its lending 
rose by 8 per cent last year in 
contrast to other banks, which 
had tiny increases. 

There have been sceptics 
about Bank (ft Scotland. Critics 
have accused it of being capi- 
tal-hungry as it ploughed the 
proceeds of three 1980s rights 
issues into an expansion of 
lending. This meant that ft did 
not accumulate capital that 
could finance bumper dividend 
increases. 

The bearish view of the hank 


SoupE Pa a neum . . ... 

has dominated from the start 
of this year when its share 
price fell from a peak of 246p to 
yesterday's level (ft I85p. This 
was because it was seen to 
have less spare capital than 
banks such as Abbey National 
and Royal Bank of Scotland to 
give back in dividends. 


Yet the bank's supporters 
argue that this argument 
misses toe point. They say that 
its management's ability to 
expand interest income 
steadily and make fewer errors 
than others underpins Bank of 
Scotland's ability to guarantee 
steady - althoug h unexciting - 


“1 quite like the stock as a 
long-term, very safe, source of 
dividends,” says Hugh Pye, an 
analyst at BZW, Barclays’ 
investment banking arm. He 
argues that the bank's relative 
lack of capital is an advantage 
because it is less likely to 
waste its money on a poor 
acquisition. 

Pye points to Bank of Scot- 
land's ability to carry on grow- 
ing its loan book in England, 
and benefit from further reduc- 
tions in its bad debts. He also 
says ft has plenty of scope to 
raise income by selling custom- 
ers other products, which 
would help to boost staff pro- 
ductivity. 

Yet reassuring as this may 
be. Bank of Scotland shares are 
not a cheap source of divi- 
dends. The bank’s gross yield 
was 3.4 per cent yesterday a 
slight discount to toe FT-A All 
Share. The sceptical orphan 


might wonder why he or she 
should trust any h ank more 
than the average public 
company. 

Terry Smith, a banking ana- 
lyst at Collins Stewart, says 
that Bank of Scotland has yet 
to prove that it can generate 
enough capital through 
retained earnings to sustain 
growth both in assets and divi- 
dends. He recommended his 
clients to sen Bank (ft Scotland 
shares when they were at MOp. 
• Yet in spite of some scepti- 
cism, Smith thinkfl that this 
could be the bmp to reinvest 
He says he feels uncomfortable 
not to have it among his rec- 
ommended shares. “It is a well- 
managed bank, and its shares 
are never going to fell to tbe 
point where they are scream- 
ingly cheap," he says. 

Even those who are not wid- 
ows or orphans might think 
about Bsrnk of Scotland as part 
of an equity portfolio, accord- 
ing to Pye of BZW. -It is the 
sort of thing you -should have 
as a long-term core hold. 1 a* 
it as something to buy for the 
kids so that they can keep.it 
for 15 years.** he says. 

John Capper 



d 


* 



FINANCIAL TIMES WEEKEND MAY 7/MAY 8 1994 


WEEKEND FT 


III 


FINANCE AND THE FAMILY 


r rears How Lloyd’s aims 
doydi to boost its Names 

fuum t , 

Richard Lapper examines far-reaching proposals intended 
: to unlock the value of London’s hard-hit insurance market 


) 



V 




T he Lloyd’s insurance market 
this week published an 
exciting blueprint for giving 
Names - individual under- 
writing members - "sitting tenant” 
rights which they may be able to sell 
eventually for cash or securities. 

This is the first time Lloyd’s has 
admitted that Names have built up 
any right to a continuing stake in the 
enterprise. Assuming a series of com- 
plex legal, regulatory and tax hurdles 
can be overcome, the proposal could 
mean that: 

□ Members who wanted to get out of 
the market could get some cash in 
return for giving up their place. 

□ They could swap their existing 
places in specialist syndicates for 
units in a wider pooled scheme, or 
shares in a corporate syndicate. 

Robert Hiscox, the market’s deputy 
chairman, says: “Nobody has ever 
said how much a Lloyd's syndicate is 
worth. The whole objective is to 
unlock the value we have in the busi- 
ness.” 

The reforms could be for-reaching, 
although there is little comfort for 
Names who have been forced oat of 
the market already by their losses. 
And, in order to benefit, even Names 
who continue to trade must be sol- 
vent and have paid any outstanding 
cash calls by July 29 this year. 

The basic idea behind the reform is 
simple. Theoretically, the 179 syndi- 
cates trading at Lloyd's are annual 
joint ventures. They are made up of 
many individual Names, trade on the 
back of their guarantees, and dissolve 
at the end of each year when they 
distribute the profits or call in the 
losses relating to that year’s trading. 
The interest of Names at present is 
confined to these profits or losses. 

In practice, though, Lloyd’s syndi- 
cates are businesses which - like 
insurance companies - have 
long-term plans and often insure 
many of the same customers year 
after year. Good syndicates can com- 
mand considerable customer loyalty. 

l,ifcp any wwtiniitng b usiness enter- 
prise, ownership of a syndicate is 
worth money. The larger, more 
respected and more profitable it is, 
the greater its value. Lloyd's is now 
trying to devise a system under which 
Names can acquire a portion of this 
long-term value. 


There are two stages to its plan. 
First, it must be sure that certain 
syndicate rights, which turn Names 
info quasi-shareholders, are vested in 
them. Then, it has to create a market 
in which those rights can be traded, 
swapped or cashed in. But this will be 
a long-term process, and the outcome 
is for from clear. 

■ Creating value 

This week, Lloyd’s announced the 
first stage of its plan; the basic mea- 
sures, to be implemented in 1995, are 
pre-conditions for establishing a mar- 
ket in membership rights. In essence, 
these reforms - which will be intro- 
duced in 1995 and 1996 - make “syndi- 
cate participation” more solid and 
durable. So, it becomes a valuable 
asset to the Name. 

Members would have for more secu- 
rity of tenure. If the agent running a 
syndicate attempted to sack individ- 
ual Names, they could appeal to 
Lloyd’s council. The plan would also 
give them pre-emption rights over 
their syndicate participations. 

This means that If a syndicate 
decided to increase its capacity (the 
amount of business it underwrites), 
the Names would have the right to 
increase their share of the extra busi- 
ness in p roportion to their stake. 

Take a Name underwriting a £10,000 
share in a Elm syndicate: he would be 
able to i pcrea-qp his share to £11,000 if 
the syndicate increased its capacity 
by 10 per cent to ELlm. 

Names would also have more con- 
trol over decisions by their syndicates 
to increase capacity, and would have 
to approve any increase In capacity of 
more than 15 per cent. This is impor- 
tant. because syndicates would find it 
banter to dilute the sb»fcg of existing 
Names by increasing capacity so 
much that the Names could not afford 
to take up their pre-emption rights, 

■ Allocating capital 

Lloyd's intends to play a more active 
role in making sure that capital is 
allocated more efficiently. It will do 
this by introducing risk weighting so 
that the amount of capital required to 
support a syndicate increases in I™ 
with the riskiness of its underlying 
business. 

Syndicates underwriting high-risk 
business (such as catastrophe re-in- 


surance) would need more capital; 
those writing relatively low-risk busi- 
ness, such as motors, correspondingly 
less. So, individual Names would not 
find themselves in syndicates whore 
future claims might be beyond their 
means. 

Lloyd's is less definite, however, 
about a series of other measures 
which are geared in one way or 
another to establish a market place in 
which syndicate participations can be 
bought and sold. 

■ Transferring value 

The central issue here is whether 
Names can “assign” their participa- 
tions on syndicates - effectively, 
transferring or selling them to 
another Name or to a corporate inves- 
tor. 

Peter Middleton, Lloyd's chief exec- 
utive, argues that assignment is 
“likely to be the fundamental b uilding 
block for any system of value”. But 
Lloyd's concedes that “a number of 
important issues need to be resolved 
before assignment can be brought 
into effect”. 

■ B«»llidng value 

The report describes three possible 

marTurnignifi- 

□ A market administered by Lloyd's. 
Options include a “matched bargain 
system” in which sellers are match ed 
with buyers; or a fully fledged mar- 
ket-making system in which a profes- 
sional market-maker is required to 
quote prices for all syndicates in 
which he deals 

The report concludes that a one-off 
auction-based tender system, in which 
all sellers of a particular syndicate get 
the same price, is the most likely 
option in the short term. It says that 
the trading volumes would probably 
be too low to support a cost-efficient 
market -making mechanism. 

□ Corporate pooling in which Names 
would “assign” their future syndicate 
participations to a corporate memb er 
in exchange for shares, securities or 
cash. 

This type of arrangement would 
allow Names to spread their invest- 
ments across a number of syndicates, 
as they do now in members' agency 
pooling arrangements, or Mapa - a 
kind of unit trust With the new cor- 
porate arrangements, though. Names 



would enjoy the additional advantage 
of having limited liability. 

□ Corporate syndicates in which 
members would assign fixture partici- 
pations to a corporate member, again 
In exchange for shares, other securi- 
ties or 

Corporate Names account for about 
15 per cent of Lloyd's capacity this 
year following the successful Intro- 


duction last year of corporate funds. 
But corporate Names are restricted 
from providing any more than 25 per 
cent of a syndicate's capacity, while 
syndicates can obtain no more than 50 
per cent of their capital from corpo- 
rate Names. The new corporate syndi- 
cates woold, effectively, be insurance 
companies operating within a Lloyd's 
framework. 


Merger splits 
investors 

Chris Tighe reports on the latest 
building society link-up plan 


T his week’s announce- 
ment of a proposed 
merger between the 
Northern Rock and 
North of England bnildlng 
societies again throws the 
spotlight on the financial 
sweeteners - societies prefer 
the word bonuses - which 
members may be offered to 
support such deals. 

Last month’s announcement 
that Lloyds Bank wanted to 
take over the Cheltenham and 
Gloncester increased the 
stakes. If that talte-over over- 
comes the regulatory hurdles, 
C&G voting Investors can 
expect an average payment of 
£1,700, with the biggest savers 
getting a maximum £10.000. 

In the Northern Rock/North 
of England merger, bonus pay- 
ments will not be on the C&G 
scale, although their size has 
yet to be decided. For many 
members of the two Tyne and 
Wear-based societies, however, 
the most interesting point in 
this deal could be that, while 
the North of England’s 272,500 
investors and borrowers will 
be offered a sweetener, the 
Northern Rock's 1.3m will not 
The reason? Although North 
of England is mnch the 
smaller of the two, with assets 
of £1.5bn against Northern 
Rock’s £7-3bn, It has a larger 
reserve ratio - 5.45 per cent 
against the Northern Rock’s 
4.3. Since the merger will 
dilute the North of England's 
reserve ratio, members are to 
be compensated. 

Many Northern Rock mem- 
bers are not impressed with 
this argument, judging from 
customers’ reactions at one of 
its biggest Newcastle brandies 
this week. “1 think we should 
get something," said Alistair 
Brown, of North Shields, a 
Northern Rock saver and 
mortgage-holder. He warned 
that the disparate treatment 
conld affect the way he votes 
in August when both societies’ 
members will be balloted for 
their support 

Lynn Gatenby who, with her 
husband, has a mortgage at 
the North of England and 
savings in the Northern Rock, 


was philosophical: “You can’t 
win all tiie time.” She added; 
“Together, they will be stron- 
ger.” 

Bat graphic artist Robert 
Carr and his wife, Maureen, 
both of whom save with North- 
ern Rock, were less phleg- 
matic. “We should get the 
same benefit,” Carr said. “And 
if they can afford to buy the 
North of England, they can 
afford to give a lower interest 
rate on mortgages and higher 
interest on savings.” 

At the North of England, 
there seemed less unease - 
and there was no sign that the 
sums talked about in the 
Lloyds/C&G deal bad turned 
heads. “I don't think the 
bonus will come to very 
much,” said mortgage and 
account-holder Jean Marron. 

Butcher Phillip Spoors, a 
North of England saver, sup- 
ported the merger. He thought 
a bigger bonus coupled with 
loss of mutna] status, on the 
lines of Lloyds/C&G. would be 
acceptable, too. 

Janet Kean, a housewife 
who saves with the North of 
England, disagreed. While 
likely to vote for the merger, 
she would not have welcomed 
a bigger bonus and loss of 
mutual status. “I prefer a 
building society to the banks. I 
have more control over my 
money with a bnildlng soci- 
ety.” 

Carr also felt building soci- 
eties were “far friendlier” 
than banks: he was worried 
that the trend to bigger societ- 
ies would lead to poorer ser- 
vice, with machines replacing 
counter staff. 

Fears about the seemingly 
relentless merger tide were 
voiced, too, by Northern Rock 
current account-holder John 
Harrison, a legal executive. He 
warned that bonus payments 
might he a short-term gain. 

“It’s very worrying - the 
number of building societies is 
getting smaller and smaller,’* 
he added. “Eventually, there 
will be so few that there will 
be a virtual monopoly among 
them and Interest rates and 
investors will suffer.” 


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Members of FIMBRA 


FINANCIAL TI MES WEEKEND may 7^MAY8_1994 

FINANCE AND THE FAMILY 


Barring disasters, one of the 
least surprising results of the 
week should come on Monday 
with full-year figures from 
Babcock International, the 
en gineer ing contracting and 

jngtofialfi. frarnfHng group. 

Announcing a £78iim rights 
issue last month, the group 
gave detailed estimates of its 
figures for the year ended 
March 31 - a pre-tax loss of 
£41 .2m, Which inrim lps a £25m 
exceptional charge and com- 
pares with, profit of £2Um in 
1992/93. 

Further evidence on the 
state of the UK grocery market 
will come on T uesd ay from 
Kwik Save, the UK’s largest 
grocery discounter - one of 
those which is putting pres- 
sure on J. Salnsbury (which 
announces annual, results on 
Wednesday) hut also is facing 
competition on its own terri- 
tory from expanding continen- 
tal discounters. Interim pretax 
profits are forecast to increase 
from £6im to £62m-64m. 

Scottish Power, the electric- 
ity generator and distributor, 
is expected to reveal annual 
profits of between £34Qm and 
£350m pre-tax on Wednesday. 
This compares with £308m last 
time. The dividend will proba- 
bly rise by 11 per cent to 12.4p 
via a final of 837p. 

Three of the UK biggest 


The week ahead 


Babcock sings the blues 


insurance companies will ngy t 
week report increases in profit- 
ability in the first three 

iwmHwi of 1994, confi rming the 
recovery in the general insur- 
ance market - . 

General Accident is expected 
to post pre-tax profits of about 
£6Qm, compared with £42m to 
the same period of 1993. 

Commercial Union, which 
reports on Wednesday, is 
tipped by analysts to produce 
profits of between £38m and 
£80m, with an average of about 
SSOm. 

Royal Insurance, also on 
Wednesday, is forecast to 
report pre-tax profits of 
between £15m and £5lm (£2m). 

Each cef the companies will 
benefit from the impact of past 
increases In insurance rates 
and indications of an improve- 
ment in niatmft experience in 
the UK. 

Some analysts warn, how- 
ever, that the profit levels now 
being achieved do not repre- 
sent any increase on the last 
quarter of 1993, and suggest 


that competition is returning 
to some sectors of the market 
Weather losses in the US and 
Ga paria, where there have been 
long spells of sub-zero tempera- 
tures, could also dampen some 
figures. 

Guardian Royal Exchange 
and Sim Alliance, which have 
Tmw-h smaTlpT US businesses, 
do not report cm a quarterly 
basis. 

J. Sainsb ury*s downbeat 
t rading statement in January, 
when it announced a fall in 
both underlying sales and. 
gross margins, and a property 
writedown of £365m, was one 
of the lowest points in a bleak 
year far UK food r etail e r s. 

On Wednesday, the grocer is 
forecast to announce a fan in 
pre-tax profits for tbs year to 
March from £735m to between 
£S20m and £34Qm. That is after 
both a £365m non-recurring 
write-down on property, 
reelecting the fall in value of 
many of Sainsb ury’s sites since 
it bought them; and a £4Qm 
recurring depreciation charge 


Grand Metropolttw 


FT-SE-A AH -Snare index 
755 — 

150 



«r 


-T— 

*5 1 ■ 

j —i — — 1 

1 L-J 


1690 91 98 

SoureoiFT GrapNto- 


9S 94 


resulting from the group's deci- 
sion to depreciate buildings by 
2 per cent a year and a revised 
depreciation policy on fixtures 
and equipment 
The key questions Salnsbury 
is expected to address on 
Wednesday is whether trading 
has improved since January - 
and whether gross margins 
have stabilised - plus the 
future of its “Essential for 


essentials" cam paig n launched 
last October. That marked a 
move away from periodic pro- 
motions towards “everyday 
low prices" cm 300 own-label 
tinfts accounting for about 10 
per cent of turnover. 

Analysts are also keen to 
hear more about Salisbury's 
plans for its other businesses - 
the Savacentre hypermarkets; 
Homebase DIY superstores and 
US supermarket chain Shaws - 
as well as planned trials of a 
city-centre format, Salisbury's 
Central 

Royal w«wk of Scotland 
reports its interim results for 
the year to March 31 on 
Wednesday and is expected to 
double last year's pretax prof- 
its of £9L6m, as well as provid- 
ing a good increase In the 
interim dividend. 

The strategic question which 
the bank might try to answer 
at its results presentation is 
whether it will spend its 
healthy capital on acquisition. 
It was among those expressing 
interest in buying Chel te nh am 


& Gloucester building society. 

The interim figures from 
Grand Metropolitan, due on 
Thursday, should show a 
healthy Increase of about io 
per cent on last year, to some 
£445m. The Pillsbury Green 
Giant business in the US 
should do well, given the 
floods in the mid-west last 
autumn and the resulting rise 
in vegetable prices. The Burger 
King hamburger business, also 
part of Pillsbury, is likely to 
produce a strong showing, too. 

The interest charge will be 
reduced by the sale of the Chef 
& Brewer chain to Scottish & 
Newcastle. But the really hot 
topic is whether GrandMet will 
take the opportunity to unwind 
its unhappy Iantxepreneur 
pubs joint venture with Cour- 
age. The betting appears to be 
against it - this soon, at any 
rate. 

Unilever’s first-quarter fig. 
ures on Friday should show 
only modest improvement, per- 
haps to £450m against £44Qm 
last year. The main depressing 
factors should be In detergents. 
The recent rather nasty down- 
turn in the US started only m 
the second half of this year, 
and thin quarter should aiy> 
start to show the costs of 
launching the new super-cot 
centra ted detergent across 
Europe. 


Investors face stern 
line on settlements 

Clients must pay more quickly, says Norma Cohen 

E 


veu before private 
investors feel Ute 
true Impact of the 
new Crest system [or 
paperless share settlement 
they are in for a minor revolu- 
tion. 

From July 18, the traditional 
two-week account settlement 
period will disappear and all 
stocks will have to be paid for 
within 10 business days of the 
transaction. For sellers, securi- 
ties will have to be delivered 
within that time. 

Earlier tins week, the Bank 
of England conceded that it 
had been too ambitious with 
its original timetable to 
squeeze the settlement period 
to a mere five days by January 
1995. 

But it says it continues to 
aim at fiveday rolling settle- 
ment by tiie middle of next 
year at the latest 

While the move to rolling 
settlement will ring in many 
changes for the private inves- 
tor - most notably, the need to 
consider tile nse of nominee 
companies and to arrange far 
extended credit facilities - 
there are other aspects of busi- 
ness which will need address- 
ing as well 

For one thing, the way 
stockbrokers handle their cli- 
ents' funds needs an overhaul 
according to the Securities and 


Futures Authority, the self- 
regulatory body for stockbro- 
kers. 

At present stockbrokers 
“pool” client fluids in between 
settlement periods, and it is 
possible to use one client’s 
funds to pay for another’s 
stock. Under the new system, 
however, stockbrokers wilt 
have to segregate each client's 
account 

While the changes in client 
money rules will produce a far 
greater burden on brokers 
than their clients, accountancy 
firm Tooche Ross says there 
are several things of which efi- 
ents ought to be aware. 

“The Mg problem is one of 
client education,” says Paul 
Leech, senior manager at 
Touche Ross’s securities and 
hunting practice. 

“Clients have to be taught to 
lick the stamp and sign the 
cheque as soon as they put 
down the telephone receiver.” 

Clients now can have from 
seven to 21 days in which to 
settle their transactions, and 
many do not have the sense of 
immediacy needed to ensure 
that they or their broker are 
not out of packet on a bargain. 

But there are other prob- 
lems, according to Mike Jones, 
head of the settlements com- 
mittee at the Association of 
Private Client Stockbrokers 


and Investment Managers 
(AJPGUfS), and technical ser- 
vices director at Capel-Cnre 
Myers Capital Management 

For one thing, the latest rule 
changes do not make dear if a 
broker whose client has 
arranged a purchase of stock, 
but has not paid for it on time, 
has a "lien” over that stock. 

Failure to clarify that issue 
will discourage brokers from 
moving swiftly to register 
stock in their clients’ names 
without cash in hand, says 
Jones. 

Alternatively, it could 
encourage brokers to urge 
their clients either to use nom- 
inee accounts or to put up a 
“margin” of their personal 
assets against which the bro- 
ker could claim In the event of 
non-payment. 

In Australia, which intro- 
duced a five-day rolling share 
settlement system recently, 
rules allowing the broker to 
hold on to the stock, and even 
lend It, have been Introduced 
with great success, Jones adds. 
These rules allow stock with a 
value of up to around £75,000 
to be loaned under these cir- 
cumstances. 

Jones says the rule has bad 
the effect of giving comfort to 
brokers and helping to 
Increase liquidity in shares 
generally. 


Directors’ 

transactions 

The Capita Group is involved 
in various aspects of manage- 
ment consultancy. Its recent 
final results showed some 
Improvement tn pre-tax profit 
and chairman Rodney Aldridge 
made a broadly optimistic 
statement. 

He and chief executive Paul 
Pindar (who combines the 
roles of managing and finance 
director), pins Richard Benton 
and John Brameld all sold 
stock on Friday April 29 at 
223p. 

Directors of Capita Group 
sell stock regularly at this time 
of year, but the steady rise in 
the share price has meant that 
they have raised more money 
this time than ever before. 

□ Secure Retirement is a new- 
comer to the market The com- 
pany develops sheltered hous- 
ing - one of the sectors to gain 
more and more prominence in 
recent years in light of the 
increasing longevity of the UK 
papulation. 

Following an Introduction to 
the market, all the directors 
have been dealing apace, dip- 
ping repeatedly into the mar- 
ket While the overall value of 
the transactions is not enor- 
mous when divided by the 
number of those dealing, the 
enthusiasm is certainly great 

□ Virtuality also is a recent 
arrival on the market. In its 
case, however, the flotation 
has allowed managing director 
Dr Jonathan Waldren and 
chairman David Payne to real- 
ise some cash by selling a pro- 
portion of their holdings. 

Vivien MacDonald 
The Inside Track 


New issues 


Lombard Insurance has 
become the second small insur- 
ance company to push for a 
flotation this year, and private 
investors can subscribe 
through a 5.15m share interme- 
diaries offer at 160p apiece, 
writes Simon Davies. 

The company was bought 
out last year from Continental 
Inc and has an indemnity 
against all c l ai m s arising from 
events before June 1993. It 
focuses on provincial general 
insurance business, mainly hi 
personal lines such as private 
car and household cover at the 



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300294 


low-risk end of the market 

Lombard reduced the issue 
price by almost 10 per cent 
reflecting the falling stock 
market but institutions have 
still not been battling for the 
placing shares. Concerns 
focused on increasing competi- 
tion in Lombard’s sector of the 
market, compounded by the 
knock-on effect of falling bond 
and equity prices on insurers’ 
investment income. 

In the short term, Lombard 
offers likely profits growth. 
And while the shares may give 
back nothing to the stags, they 
do appear to offer longer-term 
value. The offer is sponsored 
by Charterhouse Bank. 

□ HealthcaQ, the UK's largest 
provider of duty- doctor ser- 
vices, is floating through a pla- 
cing and intermediaries offer 
valuing the company at £58m, 
writes David Wighton. But the 
price is at least 10 per cent 
below initial expectations, 
reflecting the more difficult 
conditions In the new issue 
market. 

Pitched at 14.9 times last 
year’s earnings from its con- 
tinuing businesses, the shares 
have a notional yield of 48 per 
cent That locdrn fairly- attrac- 
tive given the group's growth 
record and the new opportuni- 
ties being thrown up by the 
trend towards community- 
based care. But there are some 
question marks over the 
long-term growth prospects of 
the core business. 

With 8,300 GP subscribers, 
Healthcall has almost half the 
potential duty doctor market 
which has generated good 
growth in recent years. But the 
government is keen to stem 
tiie rising bill for out-of-hours 
calls, partly by referring more 
patients to 24-hour health cen- 
tres. The group has five such 
centres already, but a major 
shift away from home visits 
could require significant capi- 
tal investment with uncertain 
returns. 

Applications must reach bro- 
ker James Capel by noon on 
Thursday, with rtoiKngw due to 
start on May 18. 


■nuktanda an shown rat ponce per tore*, wrapt where otherwise Mated. L = loss. * Net i 
pa share. B t«i PUttand penes. * Ramie before Tax. * W Quarter 
V 1st Charter. * Nat proto. 4 15 men*? fom c 14 month flgum. 


RIGHTS ISSUES 


Blag«» b to rise £2Bm via a M rights issue d 2586m eftanes 0 iffip. 
Hwtara Amdey b to nse £9,*n vis a 1-4 righto Issue d SLOGm flaw C 1 


OFFERS FOB SALE, PLACWGS & INTRODUCTIONS 


bfotsSeOSm rtaa3Jm Etureptaorp. 

afiMfll te coning to he mart** wtt a valuator) el appro*. ESOm. 
ta eomino to the mate via a placing wfeh iduu thranOSBOm 
.AS Sputa b osn*g to (he mafcat wiffi a uriutofon rtf afpox. 030m, 

b coring to lie murtrat refit a vriurion to approx. Cl SOn 
Tosra b conwg to tte mate taift a atajfltton of appro. £?435m. 


DIRECTORS’ SHARE TRANSACTIONS IN THEIR 
OWN COMPANIES (LISTED A USM) 


Company 

Sector 

Shares 

Value 

No of 
dlnscton 

SALES 





Barton Group 

BM&M 

200,000 

196 

1 

BlueUTO Tqys — 

L8J-B 

5.000 

38 

1 

BPB Industries 

BM&M 

10,000 

33 

1 

Bramtner 

Oist 

20,000 

66 

1* 

Burruh Castro! 

Offl 

52,716 

440 

f 

Capita Group — 

SSer 

979,000 

2183 

4 

Cootaon Group 

DM 

40.011 

106 

2 

Eurotherm Intern! 

ESEE 

300,000 

1200 

1 

Liberty — . 

RetG 

40,000 

166 

1* 

Regina - ... 

RetF 

350.000 

11 

1 

Reuters HokSng Ptc Mdla 

78£00 

412 

2* 

Rjchanison WostgarL 

Eng 

400.000 

380 

1 

Virtuality Group — 

SSer 

545,000 

1526 

2 

Weir Group — 

Eng 

9,000 

31 

1 


PURCHASES 


Alfled Radio 

Berry Birch & Noble 

Cooper, Frederick _ — 
Lloyds Abbey Ufa — 
Portland Group — — 


.Mda 


Prudential Carp — — 

Retyon Group — 

Rugby Estates 

Secure Retirement 

Tomkins 

West Trust 


„QHiF 

-Eng 

LSA 

—Text 
— UtA 


_ HseG 
.BM&M 
-..BCon 

DM 

-FdMs 


400.000 
10600 
18000 

2.800 

100.000 
7.768 

20,000 

50.000 

630.000 

10.000 

100.000 


24 

13 

17 

11 

94 

24 
50 
61 

328 

25 
39 


Value expressed to £000*. This Sat contains alt tranaactkxts. Inducing the exorcise to 
options (1 V 1 0014 aubsnqumBy sold, with a value war C1QJ00- htfowneBon rotated by 
the Stock Excha ng e 26-29 Apr* 1894. 

Source: Dfcectue Ltd, The toskte Track. Ednburgti 


1 PRELIMINARY RESULTS 




Prate 

Earn kig«* 

DMdMdr 



Y*ar 

to 


per store 

persbane 1 

Company 

Sector 

to 

P 

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— 1- 





FINANCIAL TIMES WEEKEND MAY 7/MAY 8 1994 


WEEKEND FT 


V 



FINANCE AND THE FAMILY 


Drive safely on the Continent 


Bethan Hutton 

has some tips 
for drivers 

A lthough the Chan- 
nel Tunnel opened 
for a very exclusive 
clientele this week, 
it will be a while before British 
drivers start pouring through 
the Chunnel en masse. But 
thousands of drivers will pile 
on to ferries and hovercraft 
thu summer. 

In a continental Europe sup- 
posedly without borders, you 
might think driving there 
should not require any more 
special planning than a 
long-distance trip within the 
UK. Unfortunately, car Insur- 
ance and breakdown cover 
which are perfectly adequate 
in the UK can leave you 
exposed to all sorts of trouble a 
few miles across the Channel 
Green proof-of-insurance 
cards were not consigned to 
the dustbin at the end of 1992; 
French police have been 
known to fine foreign motor- 
ists caught without one far 
more recently. And police in 
Spain can jail you after an 
accident, so it is wise to travel 
with a bail bond. 

Breaking down on the M25 is 
enough of a nightmare - but 
being stranded on the hard 
shoulder of the Paris ring road 
could be 10 times worse. The 
biggest selling point for the 
AA, RAC, Europ Assistance, 
National Breakdown and the 
other rescue services is the 
promise of a friendly, Engliah- 
s peaking voice on the other 
end of the emergency tele- 
phone who can summon help 
anywhere in Europe. 

Some of the services have 
their own rescue patrols, while 
others use a network of local 
companies. All promise a 
speedy roadside response and 
will tow your car to a service 
station - or, if necessary, 
return it to the UK. Extras to 
look for are: emergency credit 
facilities; additional accommo- 
dation costs; car hire or other 
onward travel costs; despatch 
of spare parts from the UK; 
and provision of a driver if the 
only one in your group is inca- 
pacitated. 

The AA charges £30.50 for 
one week's car-only Five Star 


"Just relax and enjoy 

your holiday 


I’m fully prepared for 
little accidents / ” 




cover for Europe while the 
RAC’s equivalent Eurocover 
costs £40.95 for between five 
and nine days (£3 off for exist- 
ing RAC members). National 
Breakdown's Blue Riband 
scheme would cost £3L2S for 
the same period and Europ 
Assistance would charge £25^0 
for seven days. If you just want 
to go to Ireland, it could cost 
less. There are often supple- 
ments for cars more than io 
years old, and caravans or 
trailers. 

Carrying a green card is no 
longer a strict legal require- 
ment (although this mAMay 
might not have filtered 
through to the more rural 
police forces), but it is still sen- 
able to take one in case you 
have an accident or are 
stopped by police. You should 
always tell your insurance 
company before taking the car 
abroad; otherwise, you could 
find your cover restricted to 
the third party legal minimum 

If you have comprehensive 
cover in the UK, you will prob- 
ably want to extend this for 
overseas trips. Some insurers 


include European cover free 
while others charge up to £50, 
according to brokers Telesure. 
A few, such as General Acci- 
dent, issue a European certifi- 
cate automatically with policy 
documents. Very frequent trav- 
ellers or those spending 
extended periods abroad - 
such as second-home owners - 
may have to make special 
arrangements with their insur- 
ance company. 

Most of the breakdown cover 
packages allow you free rein to 
wander as far afield as Moscow 
or Morocco, but a few corners 
of Europe are out of bounds; 
the former Yugoslavia and 
Albania are among likely 
exclusions. If you are planning 
an adventurous itinerary, 
check before you go. 

Insurers can be more restric- 
tive. and some start char g in g 
more than their standard Euro- 
pean rates if you venture into, 
say, Turkey or Romania. As 
usual, it is best to maka inqui- 
ries before setting off if there is 
a chance you could stray out- 
side the European Union. 

Some pieces of equipment. 


C&G’s mortgage bait 


T he Cheltenham & 
Gloucester building 
society is offering as 
much as £3,000 to 
those taking out a variable-rate 
mortgage before July 31, writes 
Scheherazade Daneshkhu. Bor- 
rowers with a 20 per cent 
deposit will, on completion, 
receive 3 per cent of the 
amount they borrow, to a max- 
imum of £3,000. Those with a 5 
per cent deposit or more 
receive 2 per cent, capped at 
£ 2 , 000 . 

The cash payment is being 


offered as an alternative to the 
one-year discount on the soci- 
ety's variable rate, now 7.64 
per cent The discount is 3 per- 
centage points for borrowers 
with a 20 per cent deposit and 
2 points for those with a 5 per 
cent deposit 

If you borrow up to 80 per 
cent of the value of the prop- 
erty. the cash gift is worth £180 
more than the discounted rate. 
Larger borrowers will be £120 
better off with the cash gift. 

If you have a 20 per cent 
deposit monthly repayments 


on a £60.000 interest-only mort- 
gage at the discounted rate of 
464 per cent would be £209- 
Alternatively, yon can take the 
cash gift of £L800 but pay £344 
a month. 

If you redeem the mortgage 
within three years, however, 
you will have to pay back the 
cash gift - or, if you had opted 
for the discounted rate, pay 
three months’ gross interest 

New borrowers before C&G’s 
proposed merger with Lloyds 
Bank next spring also will get 
a one-off £500. 


.pus. ei 




lior*>m**an 


Vcmranrxd 


Consistent high performance. That's what 
people want from an investment trust manager. 

And that's what you get from Murray Johnstone. 

But don't just take our word for ir. 

Mkropai, the leading independent investment 
performance measurement company, have given 
us their top investment trust group award. 

According to them, wc are the best our of all 
investment trust groups over one, three and ten 
years for consistent high performance. 

Wc have also won five first place (and five 
second place) Micrapal awards for the group 
and individual mists. Alt for consistent high per- 
formance. f And we ate What Investment Magazine 
Investment Trust Group of the Year, as wdl). So 
we are well worth considering. 

You can invest for income, growth or a combi- 
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month through the low-cost Savings Sciiemc. 

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tmeuun HinBiUtl he i«WVM iwrawA in mi Ml** «al »wi Ac dcpmfe 

IKIMUI i<n.v««r»fcv*Hi.nv lohaiw LMBwi fMfcri/fllHH 7 W«l Nftc SOM. GLKgow til iPX. THOU I2WIJI 

tnnznBB 


And the charges for our Personal Equity Plan are 
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To find out more tall us now on FREEPHONE 
0800 289978 or simply FREEPOST the coupon. 

' Ml uni jolUWonc Unwed IMKT1, FREEPOST. Glutow GlttS 
I ? lease send Jeulta of ibe ( lick box) 

• Murray Investment Trust Savings Scheme U 

J Murray Johnstone Investment Trust PEP I J 

• 

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GOOD INVESTMENT COSTS LESS 
AT MURRAY JOHNSTONE 


such as a warning triangle amt 
in-car first aid kit, are compul- 
sory in many places and rec- 
ommended in any case. There 
are also a few quirks you 
should know about It is illegal 
to carry spare fuel in Italy, 
Luxembourg, Greece and Tur- 
key, and yon must cany spare 
headlamp bulbs in Spain. 

Motoring organisations s uch 
as the AA and RAC have leaf- 
lets on motoring regulations, 
speed limi ts and equipment 
required by law in the coun- 
tries visited most often by UK 
tourists. On-the-spot fines for 
breaking the rules could make 
a large dent in your holiday 
sp ending money - »rni traffic 


police do not always accept 
credit cards. 

Sales of imi aarieH petrol in 
the UK have overtaken the 
leaded variety but the same is 
not true in all parts of Europe: 
unleaded ran be hard to come 
by off the beaten track in 
Spain, Italy and eastern 
Europe. 

Leaded fuel can cause expen- 
sive damage to catalytic con- 
verters so it is a wise move to 
fill up with unleaded before 
crossing borders and, indeed, 
wherever it is available. 

Travel insurance is also a 
must, particularly to cover 
medical and legal expenses. 


REGISTER NOW 


THE 


What region is enjoying new 
found economic and political 
stability that, along with falling 
inflation, has led to amazing 
stock market growth rates? 

What region is being called 
the next big investment 
opportunity? Find out by 
registering now for Save & 
Prospers new unit trust due 
to be launched on 14th May 1994. 


CALL FREE 0800 282 101 

M0 ub. - 4M ml • 7 DAYS A WED 


MrVMrWMtu 


To Save * Prosper SecoriUnt Limited. FREEPOST, Romford RMI 1BR. 
Plrnae ami me detail* of Save & Pmoper’a new unit Lrurt. 

Surname Korenanm 


Homo Tol iSTDi No 


Wurfc Tol ISTDi No 


So that we may call and offer further information. 


THE PBCE Of UNT5. AND ANY INCOME FROM IWM. CAN 
GO DOWN AS Will AS UP AM) YOU MAY NOT GET RACK 
ne RJU AMOUNT YOU INVESTED EXCHANGE RATES MAY 
ALSO CAUSE THE VALUE OF UNDERLYING OVERSEAS 
■WESTMB4T* TO GO DOWN OR UP PAST PERFORMANCE 
IS NOT A GUIDE TO FUTURE RETURNS SAVE & PROSPER 
GROUP LTD C A MEMBER Of IMEO AND IAUTRO 


THE INVESTMENT HOUSE 


gSbntetiiing s going on in Swissair’s Busing 

for Europe. Either you’re getting si* 
y or the seats are getting larger. Anywdyfe, 
ydu’ll be spending your time in the sky sitti 


. swi 









VI WEEKEND FT 


-r'iias^Vwj- 


FINANCIAL TIMES WEEKEND MAY^7/MAY8J9g4 


FINANCE AND THE FAMILY 


F riendly societies are 
not usually associ- 
ated with aggressive 
tactics. Tills week, 
however, a friendly society 
announced plans to take over 
a life office - the first time 
this has happened. 

Family Assurance, the third- 
largest friendly society in the 
UK, said it intended to pay out 
£I.75m for Templeton Life 
Assurance, which is part of 
the Templeton Marketing 
Group. 

The society wants to expand 
its pensions business and Tem- 
pleton Life, which has £230m 
under management, markets 
and underwrites life assurance 
and pension policies. 

Members of Family Assur- 
ance are being called to a spe- 
cial general meeting on May 
28 and, if they agree to the 
takeover, the acquisition will 
take place on July 1 so long as 
there is final approval from 
the Friendly Societies Commis- 
sion. 

Friendly societies flourished 
in the 19th century, before the 
introduction of state benefits. 
Their aim was to provide 
self-help and sickness aid to 
artisans, workers and their 
families. 

In recent decades, however, 
the societies have come to be 
regarded as poor cousins of 


Poor relation 
bites back 


make small regular savings. It 
would he difficult to find a 
unit or in ve stm e n t trust allow- 
ing a mhrimnm monthly pay- 
ment of less than £20 - often it 

is £50. But most friendly soci- 
eties set a minimum of oily 


Scheherazade Daneshkhu looks at 
a friendly society’s imprecedented 
move to swallow a life office 


the large insurance companies. 
Their best-known product is 
the 10-year, tax-exempt 
savings plan where interest in 
the fond rolls up gross of tax. 
But in return for tax exemp- 
tion, the government has 
capped the maximum contri- 
bution into these policies at 
£200 a year, or £10 a month. 

Given the co m petition from 
unit and investment trusts and 
the life offices, friendly societ- 
ies looked like facing a slow 
death until the Friendly Soci- 
eties Act of 1992 threw them a 
lifeline. 

This allowed them to incor- 
porate - in other words, to set 
up subsidiaries through which 
they could offer financial prod- 
ucts such as personal equity 
plans, unit busts and general 

TTMPTTflTlQ e. 

ft is this act which has made 


it possible for Famfiy Assur- 
ance to launch its take-over. 

This might he good news to 
friendly societies but Is it good 
for consumers? What can the 
societies offer that organisar 
thins more experienced in pro- 
viding these financial products 
do not? 

Societies argue that, since 
they are owned by their mem- 
bers, they can meet the seeds 
of their policyholders and 
remain efficient without hav- 
ing to worry about profit-hun- 
gry shareholders. 

Although they do not have 
the trade record of established 
life and unit trust companies, 
they say they can offer compe- 
tition in a market which, 
although wen populated, still 
needs It. 

Certainly, they do offer an 
alternative to those wishing to 


Yon might expect the 
returns from the tax-exempt 
policies to be much higher 
than the alternatives, bat the 
cods of adminstering schemes 
With such low premiums bites 
into the returns. 

Tunbridge Wells Equitable - 
which came out well in a 
recent survey in Money Man- 
agement - the FTs sister pub- 
lication - says the maturity 
value based on £18 a mo nth in 
its 10-year tax-exempt with- 
profits policies is £2,410 if the 
fund earns 6 per cent, and 
£3^20 if it earns 12 percent 

The corresponding figures 
for its taxable with-profits pol- 
icies are only sBghtiy lower at 
£2,400 and £3,080. ff you were 
to pay £18 a month into a Hali- 
fax account, yon would get 
£2£26 after 10 years at present 
interest rates. 

The surrender value of the 
tax-exempt policy after five 
years would be £980, whereas 
£18 a month Into the govern- 
ment's five-year, save-as-you 
earn scheme, described last 
week, would, pay &L332. 


NEW UNIT TRUST LAUNCHES 


nr v* 


(Telephone} 


Sartor 


ft* Sttfagt - Qatfn anted* PS* - 
Bos PEP Srfxma hns Aral 
VWd% Qd And. 


■ Lathi America Fund 

San & Prosper (0800 282101) 

ht e n ufl onal growth 0 No Yes 5.5 1.5 No 1,000 nfa nta nfa nfa “ 14/5/94-3/OT4 

Hot on ttie heats of the launch last year of two S&P Far East folds comes this. Regional emerging market funds are riskier than global ones. 


■ Exeter Pacific Growth Fund 
Exeter Find Managers (0800 807807] 

• Far East Inc Japan 0 No Yea &5 15 No 1,000 nfa nfa nfa nfa * 4/5/M-Z7/5/94 

Beefier specialises in Investment through Investment trusts and wSJ use closed end fords for its first regional unit tnat Same caveat as above. 


■ Hypo Foreign A Colonial Japanese Growth And 

Hypo Forefri & Colonial (071 454 1434 ) 

Japan 0 No No 5« 19% No 1,000 nfa nfa nfa nfa 

Aiming for long-term capital growth as the Japanese economy recovers, and buying In whte share prices are sffll low. 


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0800 30 33 30 



Your pension 


Should you opt out? 


In the first of three articles , Eric Short looks at the decision over 
whether to stay in a company^ scheme or transfer to a personal plan 


Question: I am a member of 
my company’s pension scheme 
but have been told 1 would do 
better to leave and take out a 
personal pension from a life 
company. Is that right? 

Answer: First, yon must con- 
sider and compare the benefits 
provided by the company 
scheme with that provided by 
a personal pension. 


Q. What benefits does each 
arrangement provide? 

A. Benefits from a company 
scheme are set out in the book- 
let describing it These can be 
obtained from the company’s 
ponginns department The ben- 
efits from a personal pension 
are explain ed in the relevant 
brochures. 



Q. What pension would I 
receive from the company 
scheme? 

A. The company scheme pro- 
vides a pension based an the 
number of years you have been 
a member and your salary at 
or near retiranent 

Say the scheme provides a 
pensio n of 1/SOth of salary for 
each year of membership and 
yon would complete 30 years 
membership to retirement, 
your pension would be 3O/60ths 
(one-half) of your salary at 
retirement 

The pension is paid far the 
rest of your life, with a guaran- 
teed minimu m (usually) Of five 
years' payments. Alternatively, 
you have the option of taking a 
cash sum (tax-free) together 
with a lower pension. 

Under Tninud Revenue rules, 
the lwar i minn pension benefit 
is two-thirds final salary or a 
cash sum. of L5 fimw final sal- 
ary and a pension of around 
half salary. 

In almost all public sector 
schemes, retirement benefits 
consist of an automatic tax-free 
rash sum and reduced pension 
— a maximum of a cash sum of 
L5 times salary ynd a pension 
of half salary. 


achieved by the life company 
ivnHi reti re ment. 

3. Annuity rates at the time 
of retirement. 

The more you contribute and 
the lower the charges imposed 
by the life company, the better 
the investment performance. 
The higher the annuity rates, 
the larger the pension. But at 
no time is there any guarantee 
about its value. 

In contrast, the pension pro- 
vided by the company scheme 
is guaranteed as a percentage 
of your salary at retirement 
and its value is not related 
directly to the contributions 
pyfrf by you into the scheme, 
nor to tiw investment perfor- 
mance of the assets held In the 
scheme; nor to running costs. 


Q. Which is the better bet? 

A. It depends. The feet that a 
personal pension carries no 
guarantees does not invariably 
mean you will be worse o£L 


Q. How does this compare with 
the pension from a personal 
pension contract? 

A. Under a personal pension, 
the contributions paid (less the 
expenses deducted by the life 
company) are invested. The 
pension is provided by using 
the accumulated cash sum to 
buy an annuity. 

You have the option of tak- 
ing up to 25 per cent of tbe 
accumulated value as a tax- 
free cash sum and buying an 
annuity with the rest 

You can tafrg the lvmgfits at 
any time between your 50th 
and 75th birthday (both dates 
inclusive). 

So, your return from a per- 
sonal pension depends am 

L The amflrmt ftr-rrrmnlrrt-pri 

under the contract which, in 
turn, depends an the amount 
of your contributions less the 
charges deducted by the life 
company. 

2. The investment return 


Q. Would my spouse receive a 
pension when I die? 

A. With a company scheme, 
a spouse’s pension is provided 
automatically, it is usually 
around half the value of your 


Annuities 


Making the most 


If a couple retires, each spouse 
having accumulated their own 
pension funds, the question 
always arises: should they buy 
a single or joint life a n n ui ty? 
Take a couple with £100,000 
each in their pension finds. 

If tile husband, aged 65, uses 
his £100,000 and buys a joint 
life annuity from flarmria Life 
(see table), his gross annual 
annuity will be £9,234.48. 

If the wife, aged 63, uses her 
£100,000 to do likewise, hers 
wifi be £9J62J6. 

Should both buy single 
annuities with the same bene- 
fits, however, the husband 
would receive a gross annual 
income of £11,64302 and the 
wife £9,951.48, 

So, the total gross animal 
income for the couple with a 
joint life scheme would be 


£184*97.44. And should one die 
before tbe other, the income 
would remain at this level 
until Che survivor’s death. 

But if, an the other hand, 
each bought a single life annu- 
ity, they would get an initial 
gross income of £21^94^0. 

Of course, the death of 
either partner would mean 
their portion of the income 
died with than. This mwmw 
that if tbe husband died first, 
for example, she would he left 
with an income of £9,951.48 
for the rest of her life. 

Bren when there is a big dif- 
ference between spouse’s fund 
values, couples normally 
choose a combination of single 
and joint life annuities, with a 
reduced spouse's pemj ofl. 

Peter Quintan, 
Annuity Bureau 


pension W rimtiar annual 
increases to your pension. So, 
tbe benefits under a company 
scheme are worth more to a 
married employee than a sin- 
gle one. 

With a personal pension, you 
must buy an annuity with a 
spouse’s benefit The cost Is in 
the form of a lower initial 
annuity payment 


Q. What about increases in 
pensions to offset the effects of 
inflation? 

A. Most company schemes 
provide guaranteed annual 
increases. In addition, they 
usually make discretionary 
increases on top of these guar- 
anteed increases to offset at 
least partially, the effects of 
inflation. 

With a personal pension, if 
you want the payments to 
increase each year, you most 
pay for than. Annuities pro- 
vide a choice oE 

1. Level payments with no 
increases. 

2. Fixed guaranteed annual 
increases. 

3. Increases based on the unit 
price of the underlying fond. 

4. Guaranteed increases in line 
with the RPL 

The level pension with no 
increases provides the highest 
initial value. The greater the 
rate of increase in payments, 
the lower is the starting value. 


Q. Suppose I retire early? 

A. With a personal plan, you 
will get a lower pension. How 
much lower depends on how 
early you retire. Tbe accumu- 
lated value will be less because 
you will have paid fewer con- 
tributions and there is less 
time for the fund to grow, and 
annuity rates are lower. 

With a company scheme, you 
would get a reduction. But 
many schemes impose less 
stringent penalties than per- 
sonal plans, especially if early 
retirement is through redun- 
dancy. 


Q. What happens if I die 
before retirement? 

A. Company schemes pro- 
vide generous benefits. There 
is a cash sum, free of all taxes, 
of up to tour times your salary 
at the time of death, phis a 
spouse's pension based on your 
total period of membership had 
you reached retirement, plus 
children’s benefits. 

Again, these are worth more 
to a married employee than to 
a single. 

Under a personal pension, 
your dependents would receive 
the amount accumulated under 
the contract at the time of 
death. Further cash benefits 
would have to be paid for. 


Q. What happens if I leave the 
company ? 

A. If you have taken out a 
personal pension, then you 
simply cany it over to your 
next job. If, however, you 
stayed in the company pension 
scheme, then the position is 
more complex and will be dealt 
with in another article. 


Q. Where can I get advice? 

A. The company pension 
department can advise you an 
all aspects of its scheme, and 
its benefits are summarised is 
an animal statement 

A finnnrifli adviser can give 
a direct comparison between 
the benefits from a personal 
pension and those from a com- 
pany scheme - providing be 
has the necessary information. 

But you must make sure that 
the adviser provides fell 
details of the contracts, includ- 
ing the charges, tite life compa- 
ny's investment record, and his 
own commission/remunera- 
tion. 

Above all, ensure that he 
gives, clearly, the reasons 
hflhinri any recoanmandations. 


Q. What do i pay? 

A. Under a company schema, 
your contribution is pre-deter- 


■ Brie Short has won the Tech- 
nical Investment Journalist of 
the Year canard for 1994, spon- 
sored by Alexander Gay Part- 
ners. 



LATEST ANNUITY RATES 

Laval annuity 

Mate age 55 

Annuity 

Female age 50 

Annuity , 

j Months movement 43.796 

Months movement 43 . 4 % 

Equitable Life 

mswas 

Scottish Widows 

E 8 ,50008 

Canada tile 

Ea. 487.76 

Royal tite 

£836725 

Scotttei Wldowa 

£ 0 , 370-08 

Sun Ute 

£ 8358,48 

Mate aged 60 

Annuity 

Female aged 60 

Annuity 

Months movement 43^96 

Months movement 42096 

Equftabfetife 

etO , 44504 

Canada Ufe 

£ 8/46820 

Canada tite 

£1034438 

Royal LJe 

£937503 

RNPFN 

£1022900 

Sun Life 

£ 9^7338 

Male age 70 

Anratey 

Female age 70 

Amtety 

Months movement 44396 

Months movement 42096 

raw 

£ 13,75800 

FWffl 

£ 11 . 825 JOO 

Canada Life 

£1304002 

Canada Ute 

£ 11 , 701.44 

Eoatabie Lite 

£ 13387.04 

Hoy a/ Ufe 

£11j637A2 

Joint Be level annul 

ty - 100 % •pome's benett 


Mate 60 /Femato 57 

Annufiy 

Female 63 /Male 65 

Annuity 

Months movement 42 S 96 

Man&B movement 42-796 

Canada Life 

8004.48 

Canada Ute 

£ 9 ^ 34.48 

Scottish Widows 

£ 8^420 

Royal Life 

£ 9,17533 

Royal Ufe 

28^8433 

Sun Lite 

£ 3 . 050.16 

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|U 


min ed as a percentage of yaor 
salary, with the company pay- 
tog the balance of the costa. 
Many schemes are uou-coutrib- 
utory: that is, the employee 
pays nothing and tbe whole 
cost is met by the employer. 

With a personal pension, you 
pay what you like. But the 
employer is under no obliga- 
tion to contribute - and few 
do. 

The employee usually has to 
pay out of his own pocket, and 
it needs a significant contribu- 
tion each year to get an ade- 
quate pension. 

So, if the employer will not 
contribute and/or the company 
scheme is non-contributory, an 
employee should not opt out of 
a company scheme. But if the 
i-nmpany contribution is high, 
a younger employee could do 
better with a personal pension. 






Q. What should younger 
employees do? 

A. This depends cm their con- 
tribution to the company 
scheme and whether they can 
join the scheme at a later data. 

ft the employee’s contribu- 
tion is substantial - say, 5 per 
cent of salary or more - usu- 
ally they would achieve better 
returns with a personal pen- 
sion, at least in the early years. 

But as time passes, each con- 
tribution to a personal pension 
becomes less valuable because 
there is less time for contribu- 
tions to accumulate to retire- 
ment At some point, around 
mid-40s, the employee would 
be better off joining the com- 
pany scheme and stop paying 
contributions into the personal 
pension. 

In this way, the combined 
pension from the personal and 
the company scheme is likely 
to be higher than provided 
either by the personal pension 
cm its own or by the company 
scheme an its own. 

You must, however, be care- 
ful that Inland Revenue limits 
are not breached. 




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FINANCIAL TfMES WEEKJEND MAY 7/MAY S 1994 


WEEK-END FT 


VII 





FINANCE AND THE FAMILY 




iro 


Ren 


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bites 





S ome time ago. an 
acqqaintance took out 
a Small Business 
Development Loan. 
When he came to clear this, 
his accountant estimated he 
still owed some £3.000 inter- 
est. Bat the bank involved 
claimed that, because the 
“Rule of Three” applied, he 
owed more than £30,000 inter- 
est Just what is this Rale of 
Three? 

■ Frustrating though it is to 
admit, we have drawn a blank 
on your query. No one we have 
contacted has heard of any 
Rule of Three. This includes 
the Department of Trade and 
Industry and several senior 
representatives of the invest- 
ment and banking world. Our 
only suggestion is that your 
acquaintance returns to his 
lending bank for further clarifi- 
cation. (Reply by Murray John- 
stone Ltd, X 

Setting up 
a trust 

My husband and I are in our 
early 60s. We have two daugh- 
ters, who are married. One 
daughter has two young chil- 
dren. Our house, and the bulk 
of oar assets, are owned 
jointly. Bach of os has a pen- 
sion in our own right. 

Our wills were made some 
years ago and leave all to the 
sarvivor. On the survivor's 
death, the estate would be 
divided between our daughters 
or, if they died first, to their 
children. Bat if things were to 
be left like that, then, on the 
second death, oar daughters 
would have a substantial 
Inheritance tax bin. 

I am told it is possible to 
reduce LHT by each of us mak- 
ing a will in which the first 
£150,000 is left to our children 
in a discretionary trust that 
allows the Income from this 
capital to be paid to the sur- 
viving spouse until death. The 
remainder of each estate 
would otherwise pass directly 
to the survivor. 

The same source says that, 
for this to be permitted by the 
Inland Revenue, each of us 
needs to hold assets of 
£150,000 in our own name, 
rather than jointly, as now. Is 
this advice correct? If so, how 
do you go about setting np 
such a trust? 

■ It is possible for a husband 
and wife each to leave wills so 
that the first £150,000 is left to 
the children upon discretion- 
ary trusts with the balance 
being left to the surviving 
spouse. The trustees could 
exercise their discretion in . 
favour of the surviving spouse 
should the need arise. 

You would need to ensure 
that the surviving spouse does 
not have a right to the income 
as it arises as. in tax terms, 
this would effectively be 
treated as an outright gift of 
the assets to that spouse. This 
would render nugatory the 
planning undertaken. 


Baffled by a 
mystery rule 



No legal mynm a B y can Do aeo saeJ tv too 
Fhanael firm for too, mm gMn n togas 
oeMrm At arqAfaj a# be mnd tv post 
as soon as pcostfe 


It is also correct that, if you 
own assets jointly, then they- 
will pass to the surviving 
spouse by law. To avoid this, it 
would be advisable for assets 
to be owned In your individual 
names or jointly as tenants in 
common. 

Given the care with which 
the trust needs to be drafted, I 
should advise that you seek 
professional help. The fees 
incurred would be small rela- 
tive to the tax saved. (Reply by 
Barry StiUerman of Stay Hay- 
ward). 

Two down, 
none to go 

In October 1967, 1 acquired 400 
shares in a company called 
Lees, Thomas & Worsnop Ltd. 
In May 1971, an offer was 
made for these shares by the 
Aldgate Investment Co. Ltd 
bnt I declined. Do these com- 
panies still exist and are the 
shares of any value? 

■ The Aldgate Investment Co. 
Ltd was dissolved on December 
31 197/ and Lees, Thomas & 
Worsnop Ltd followed on 
December 31 1980. So. the 
shares would appear to be val- 
ueless. (Murray Johnstone Lim- 
ited). 

Exercising 
an option 

As a member of an approved 
share option scheme, I will be 
exercising an option later this 
year. As I have already exer- 
cised one in the past three 
years, any difference between 
issue price and market value 
will be taxable. The option is 
with my employer's ultimate 
holding company, a PLC. 

1. On what basis will the 
market value be established? 

2. (a) How will the exercise 
be taxed? (b) If treated as capi- 
tal gains fa**, can the animal 
exemption be applied? (c) If 
treated as a taxable benefit, 
should it be included on my 
Plld from my employing com- 
pany? (d) Will I be able to 
include the taxable benefit 
with my earnings, in order to 


calculate my 15 per cent maxi- 
mum FSAVC contribution? 

■ Ask your tax office for the 
explanatory pamphlet on share 
option schemes, IR100. Briefly, 
the answers to your questions 
are: 

L By reference to the prices 
quoted in the Stock Exchange 
Daily List 

2. (a) As Income, (b) Does not 
arise, (c) No, because it has to 
be reported specifically, (d) 
Yes. 

A will that 
isn’t specific 

I would like to makp a will 
along the following lines: My 
estate to be disposed of by X 
(or by X and Y, if two are 
required) with the request (not 
binding) that such disposal be 
made in accord with my 
known wishes and any letters 
which 1 may leave. 

I would want it drawn in 
such a way that any d ispos als 
to charity would be IHT-ex- 
empt. Just as they would be if 
made as direct bequests under 
the wilL Is it possible to do 
this? I have just been told by 
my local solicitor that it isn’t 
and that I must be specific 
regarding disposal of my 
estate. 

■ 1 tend to agree with the local 
solicitor. It is always possible 
to leave your estate in a discre- 
tionary trust with powers for 
the trustee and executors to 
distribute it in accordance with 
a separate letter of wishes. But 
1 cannot see why. If you know 
already how you wish to leave 
your estate, you should not 
write this into your will. This 
provides a lot more certainty - 
and you can always write a 
new will if you chang e your 
mind. (Barry StiUerman). 

Offshore 

worries 

I am South- African born and 
have been DE-resident for 15 
consecutive years although I 
do not have UK domicile. I 
have investments, accrued 
income and gains held off- 
shore. All originated offehore 
with no frinds from the UK. 

1. If. after 17 consecutive 
years’ residence, the Inland 
Revenue declares me to be UK- 
domiciled, what would be the 
tax position of my offshore 
holdings? 

2. If I die before my domicile 
changes, what would be the 
tax position of the holdings? 

■ Your being born outside the 
UK is of no relevance to your 
domicile or origin (although, 
presumably, you have estab- 


HtGHEST RATES FOR YOUR MONEY 





Notice/ 

IMiuti 

Rate 

fnt 


Account 

Telephone 

term 

deposit 

% 

paid 

INSTANT ACCESS A/c* 

Bemtngham Mdstilres BS 

Fhst Class 

09D2 645700 

Postal 

£500 

550% 

Yly 

Manchester BS 

Money by Mai 

081 839 5545 

Postal 

£1,000 

600% 

Yiy 

Leads & Hobecfc BS 

AW on 

0532 438292 

Postal 

£10500 

645% 

vty 





£25flOO 

660% 

Yly 

NOTICE A/C* and BONUS 

Greenwich BS 

Capital Shares 

081 668 8212 

30 Day 

00.000 

680% 

Yly 

B » W Asset 

90 day 

0800 303330 

90 Day P 

00500 

675% 

Yiy 

Chelsea BS 

Fixed Rate Bond 

0800 272505 

30.657 

00,000 

7.0O%F 

Yiy 

Britannia BS 

Fixed Rate Bond 

0538 391690 

1-659 

£2500 

625%F 

Yly 

MONTHLY INTEREST 

Manchester BS 

Money by Mai 

061 638 5545 

Postal 

£5.000 

5.84% 

Mfy 

Northern Rock BS 

Postal 7 

0500 505000 

7Day(P) 

£10500 

635 %A 

Mty 

B & W Asset 

Monthly Income 

0800 303330 

90 Day 

£10500 

655% 

Mly 

BnUrana BS 

Rxed Rate Bond 

0538 381690 

1.8.99 

£2500 

600HF 

Mly 

TESSAs ITaac Free! 

Hinckley & Rugby BS 


0455 2S1234 

5 Year 

£3500 

755% 

Yly 

OumfermUne BS 


0383 721621 

5 Year 

£3.000 

750% 

Yly 

TSB 


Local Branch 

5 Year 

£250 

755% 

Y V 

National Counties BS 


0372 742211 

5 Year 

£3500 

755% 

Yly 

HKCH INTEREST CHEQUE A/cs (Gross) 


HICA 

031 556 8235 

tastsrt 

£1 

4.75% 

Yiy 

UDT 

Capital Bus 

081 447 2438 

Instart 

£1.000 

4.75% 

Q*v 

Chelsea BS 

Classic Postal 

0800 717515 

Instant 

£2500 

600% 

Yfy 





£25500 

655% 

Yiy 

OFFSHORE ACCOUNTS (Gross) 


Irtemadonal 

0461 715735 

instant 

£500 

675% 

YV 


FixadJnLSond 

0481 622747 

lYritand 

£500 

600%F 

OM 


Flexible Inv 

0534 608060 

60 Day 

£10500 

630% 

%YIy 

Derbyshire QOM) Ltd 

90 Day 

0624 663432 

90 Day 

£50500 

7.15% 

Yiy 

GUARANTEED MOONS BOWS {U*t} 

Premfun Life 


0444 458721 

1 Year 

Cl .000 

4.70% 

YV 



0279 462839 

2 Yaw 

£20500 

640% 

Yiy 



0279 462839 

3 Yew 

£10500 

610% 

Yly 

Co-operative Bank 


0800 132329 

4 Year 

£2500 

665% 

YV 

EuroWa 


071 454 0105 

5 Year 

£10500 

750% 

YV 


MOTiomL smumos mca a bombs tan»»i 


Investment A/C 

1 Month 

£20 

555%G 

YV 

Income Bonds 

3 Month 

£2500 

650% H 

«V 

Capital Bonds H 

5 Year 

£100 

755%F 

0M 

Fust Option Bond 

12 Month 

£1.000 

600%IF 

YV 

Pensioners OB 

5 Year 

£500 

750%F 

MV 

HAT SAVMQS CERTIFICATES fTw Free! 

41st Issue 

5 Year 

£100 

640%F 

OM 

7th Index linked 

5 Year 

£100 

350%F 

OM 




+tnftn 


CMdrens Bond F 

5 Year 

E2S 

755%F 

OM 


TWs table covers major bonks and Buftflng Societies only. Afi rates (except those under heading Guaranteed Income 
Bonds) are shown Gross. Fixed = Fixed Rate (AH other rates are variable) OM = Interest paid on maturity. N- Net Rate. 
P= By Poet only. A a 0-25% bonus it no withdrawals per annum. Q* 5.75 per cent on £500 and above; 8 per cent on 
£25,000 and above. H= &75 per cent on £25.000 and above. 1= 6.40 per cent on £20,000 and above. 

Source: MONEYPACTS. The Monthly Guide to Investment end Mortgage Rates. Laundry Lote, North Wateham, 
Norfolk. NR28 080. Readers can obtain an introductory copy by phoning 0692 500677. 


business carl 


have free bankmg 

and earn 4 . 00 % 



gross pA? 

Call our 24 hour line: 071-626 0879 or during office hours: 071-203-1550 


You can have 60 free 
transactions per month, 
and earn a high interest 
rate on a minimum 
deposit of £2001. 

ALU E D ^T^RJJSjr 

Cjmoi Bridge JO. Utag* H.6, lclc K-iR 2AT 


lished that you are. in fact, 
domiciled overseas). 

As you have been resident in 
the UK (for Income tax pur- 
poses) since some time in 
1979450, you will be treated (Cor 
inheritance tax purposes only) 
as domiciled within the UK 
with effect from April 6 1995, 
by virtue of section 267(lXb) of 
the Inheritance Tax Act 1984. 

It is possible that the IHT 
consequences of that deemed 
domicile may be modified by 
the terms of a double taxation 
agreement with your country 
of actual domicile (hut. as you 
do not wish to disclose the 
iwnw of that country, we can- 
not comment further). 

Your UK income and capital 
gains tax liabilities will con- 
tinue to be based upon your 
actual rio mi rila (under English 
law, so long as you remain in 
England). 

If you die before April 6 1995, 
your assets located outside the 
UK should escape inheritance 
tax. 

Avoiding CGT 
on a house 

My husband and I live in Swit- 
zerland. In 1984, in order to 
give my mother an increased 
income, I agreed to buy her 
house for £22,000, its indepen- 
dent valuation. 

The house was conveyed to 
me, subject to an Interest-free 
mortgage in my mother’s 
favour of £22,000 (repayable at 
£150 a month) and a tenancy 
for life agreement To date, I 
have paid my mother £18.000 
and tiie approximate value of 
the house is now £55,000. 

Sty husband and I win be 
returning to live in the UK 
permanently next month. How 
should I deal with the house to 
avoid paying CGT when, even- 
tually it is sold? 

■ We take it that the house in 
question is in England (or else- 
where in the UK), and that the 
mortgage deed and the tenancy 
for life agreement are subject 
to English (or Scots or North- 
ern Irish ) law. That being so. 
the solicitor who acted for you 
in 1984 (or his successor) is 
best placed to advise you. 

One possibility is that the 
tenancy-for-life agreement is a 
settlement to which section 225 
of the Taxation of Chargeable 
Gains Act 1992 applies. This 
was probably considered at the 
time the documentation was 
prepared in 1984 (the 1992 Act 
being merely a consolidation of 
existing law). 

It seems clear that section 
226 of the 1992 Act does not 
apply. One posable course of 
action, if need be, would be for 
you and your husband to move 
into the house for a short time, 
giving judiciously-timed 
notices under section 222(6Xa) 
of the 1992 Act beforehand and 
afterwards (with retrospective 
effect from judiciously-chosen 
dates). But professional guid- 
ance through the CGT and IHT 
minefield is essential. 


Offshore 
variable 
rates slip 

Many offshore rates remain 
competitive with the mainland 
market and, for those seeking 
gross income, they are worth 
considering. But variable 
offshore rates from building 
society subsidiaries have 
generally followed the 
downward trend of mainland 
rates recently. Woolwich 
Guernsey has proved the 
exception by increasing the 
rates on larger balances in 
its International account 
As on the mainland, fixed 
rates have finned slightly, 
with both the Halifax 
International and Lombard 
Banking (Jersey) increasing 
their rates. New accounts have 
been introduced for UK 
residents by N&P Overseas, 
with a 90-day notice account, 
and Britannia International 
has opened up its new 
Index-Linked account to both 
UK and overseas residents. 

But its market-leading, 
five-year fixed-rate bond is 
available only to expatriates. 

Onshore, the slide continues 
in variable rates. Small 
reductions are not always 
advertised widely and 
investors should be aware that 
the return on their savings 
could be eroded. 

With investors chasing 
decent rates, smaller societies 
have been inundated with 
inquiries. Being unable to 
cope, some have withdrawn 
accounts to new money. 
Accounts now closed that have 
featured in our charts in 
recent weeks are Bullion 
Share from Teachers, Quay 
Account from Tynemouth, and 
Scarborough 94 by post from 
Scarborough. 

The leapfrogging of fixed 
rates from bonding societies 
has stopped for the moment, 
but guaranteed income bond 
rates go on rising. The top rate 
now is from Eurolife at 
£10,000. paying 7.00 per cent 
net (9.33 per cent gross 
equivalent) over five years. 

Christine BayUss. 

Mpneyfacts 


The wealth protector 

Roger Harris & Company: 15th in a series on fee-based advisers 


R oger Harris is quite 
clear about his role 
as an independent 
financial adviser. He 
wants to help his clients solve 
their financial challe nges, min- 
imise their tax hills and max- 
imise their investment returns. 
Above all else, he is there to 
help them protect their capital. 
“That is paramount, " he says. 

Harris spent 15 years helping 
to build a broadly-based finan- 
cial services group before be 
founded his Leicester-based 
firm, Roger Harris & Company, 
in 1988. He set up as a sole 
trader “in order to spend more 
time doing a better job”. 

He felt that his previous firm 
was trying too hard to be all 
things to all clients. As Harris 
explains: “Because the major- 
ity of the business was com- 
mission-based. yon always had 
to say, right. I’ve dealt with 
that client, now 1 must find 
another to sell products to. 

“I was also convinced that 
the boom of the 1980s was com- 
ing to an end. It was fairly 
obvious that it was a peak of a 
cycle and I felt that our finan- 
cial services group, which was 
surviving on commissions and 
mortgages, would suffer." 

His solution was to speci- 
alise. He established a small 
financial p lanning practice, 
aimed mainly at hi gh-earning 
and high net worth people. The 
firm has been fee-based since 
the start; any commissions 
received are placed against the 
client's account and deducted 
from the fees, all of which are 
time-based. 

Hourly rates have been 
reduced recently to £20-£90 
because Harris cut his over- 
heads when he moved his 
office out of Leicester's city 
centre. “There is a cost for tak- 
ing advice and there is also a 
cost for not taking advice," 
Harris says. “The sadness is 
that the majority of the invest- 
ing public, quite rightly, could 
not justify paying our sort of 
fee." 

His clients tend to live 
within 25 miles of Leicester 
and, collectively, his 25 largest 
have assets of £30m. But this 
evidence of wealth does not 
mean new clients are in con- 
trol of their financial affairs. 
Some have arrived at his office 
with what Harris describes as 
“a Marks and Spencer shop- 



nts 


Name of financial advhet: 
AdekrMS of bead offices 


Roger Hauls A Company 
Launde Mouse. 

Hartoorotiqh roacf. 

Oadby, Latoastar UE2 4UE 


Data firm was eataMshed: 1988 

ftegatasoK Ffmbra 

Funds under management: Not disclosed 

Niraber of cBantK - . . 100 

Number of offices: One 

MW s w u ta I nwn a tm e H t a cbap te t fc No minimum 
Services offarad: 




r 


r 


S' 


r 


Comprehensive personal financial 
planning and Investment advice 

£20 - £90 an hour 

r r r r r 


ping bag with 20 years’ accu- 
mulation of endowment poli- 
cies and unit trusts which they 
bought because it seemed a 
good idea at the time. I get 
great pleasure from clearing 
through this paperwork.” 

This haphazard approach to 
investment is the antithesis of 
Harris’s own philosophy. He 
finds that many new clients 
have bought nearly all their 
investments from off-the-page 
advertisements, mail shots, or 
from direct salesman. “In no 
case have they ever been 
advised to sell an investment 
and secure a profit," he says. “1 
believe investment advice to 
sell is just as important, if not 
more so, than when to buy." 

Harris feels investment man- 
agement is the backbone of all 

financial planning nUhnngh he 

will not reveal the size of the 
pliant funds hr* has under man- 
agement and says they are 
impossible to quantify. "For 
instance, I have introduced 
millions of pounds to building 
society postal accounts. Do you 
include this?” 

He is no believer in buying 
investments for the long term. 
“Investment is all about trends 
and cycles. Perfect investment 
is to buy lowish and sell high- 
ish. Talking about paper prof- 
its is a pointless exercise. It Is 
not a profit until you sell it 
and put it on the table." 


He is particularly critical of 
the way life assurance man- 
aged funds are presented to 
potential investors. “I have 
never been able to understand 
why companies are allowed to 
refer to what is, effectively, a 
fairly static mixed fund as a 
‘managed* fund. 1 think the 
insurance industry is just mis- 
leading customers. 

“The public expects there to 
be a manager, who is watching 
over funds daily and who will 
switch between different mar- 
kets and sectors. A client close 
to retirement, who came to me 
recently, was horrifed to find 
that his substantial pension 
fund was in a managed fund 
that was 80 per cent exposed to 
the market" 

H arris believes all 
investments need a 
predetermined exit 
point. “I put stop 
losses on every investment 
that is asset-backed. This way, 
there is a better chance that 
clients will not suffer if the 
next stock market fall is simi- 
lar to October 1987 or, worse, 
to the collapse in 1974. 

“My overall exit point now 
for anyone in UK equities is a 
Footsie index of 3,000. We have 
already sold a lot of invest- 
ments because we had a stop 
loss on the Footsie at 3,200. So, 
the majority of clients are 


already out and sitting on 
cash. 

"Certainly, this is the case 
with the Peps we manage on a 
discretionary basis. I think the 
only sensible Pep Is the one 
you can move into cash. And 
although we have done very 
well on zeros over the past cou- 
ple or years, we are very close 
to stop losses at the moment” 

Harris uses his first meeting 
with a prospective client to 
“interrogate and find out 
exactly what they want to 
achieve". This results in a 
detailed financial planning 
report, updated annually. 

He considers empathy with 
clients to be crucial and says: 
“Clients will telephone me ns 
their first port of call when 
they have a query on financial 
matters, so there must be 
trust. If I think there isn’t any 
chemistry at the first meeting, 
I would rather ray there and 
then that this isn't going to 
work." 

Harris, who admits to being 
“a bit of a loner", adds: “1 sus- 
pect the majority of financial 
advisers obtain a lot of their 
views from seminars run by 
unit trust groups. I don't have 
a very high opinion of the 
industry. It's going to be a long 
time before this is a true pro- 
fession.” 

Joanna Slaughter 



NO INITIAL CHARGE 



NO WITHDRAWAL FEE 
AFTER 5 YEARS 


M&G continues to offer 
better value by abolishing 
the initial charge on the new 
M&G Managed Income PER 

“There is absolutely no reason why you should 
not organise PEP investments on the first day 
of the new financial year rather than the last 
day of the old one. But even better than either 
is to adopt a regular-savings strategy.” 

Diana Wright, The Sunday Times 27th March 1994 


i 

i 

i 

x 


To: The M&G Group, M&G House, Victoria Road, 
Chelmsford CM1 1 FB. No Salesman will call. 


Mr/Mrs/Miss 

Initials 

Surname 


Address 


Postcode 

Issued by MSG Financial 


Past performance does noi guarantee future growth. The price cl units 
and the Income from them can go down as well as up; you may not get 
t»ck the amount you Invested. 

Unite in The MUG Managed Income PEP held for less than S years are 
subject to a withdrawal tee of between 1 % and 4£%. 

Ws kmt make your nun* and address e M t hhte to unconnected organtndiona. 
We wa occeekratly Ml you snout other products or services offered by auraelwM 
and aaaoctstod MSG Companies. Tick the box □ If you would prater ms to receive 
two information. 

U&G unt (nets era mragad by M&B Socurifes Umhod (Mombar erf MAO and 
Loutrof. 

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For literature. Including 
an M&G Handbook and 
details of PEP 
transfer and M&G Sterling 
High Interest Fund, 
please return this coupon, ■ 
contact your Independent I 
financial advisor I 

(If you have one) or 
telephone 0245 390 OOO. 

(24 hour service). 


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M&G is the 
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UK Unit 
Trust Group 
of the Year. 


THE M&G PEP 


k 






VIII WEEKEND FT 






FINANCIAL TIMES WEEKEND MAY 7/MAY 8 1994 


MINDING YOUR OWN BUSINESS 


J ohn Litchfield and Debbie 
Goldsmith met cm a battlefield 
eight years ago. After that, 
they turned their shared inter- 
est into a Joint venture and 
founded Civil-Wardrobe, a company 
which supplies period clothes princi- 
pally for English civil war re-enact- 
ments. an January 1, 1990. Since then 
the chief battle for them has been 
keeping the business afloat 
“We are both fanatical about civil 
war re-enactments." said Litc hfie ld. 
38. 

The two were confident of success 
when they started Civil-Wardrobe. 
They had been successfully making, 
hi r in g and selling civil war costumes 
to enthusiasts in the Sealed Knot, the 
En glish CivU War Society, and other 
reenactment groups for two years, 
and in 1990 they gained a contract to 
supply, launder mid maintain all the 
period costumes to the Ltttteoote his- 
torical theme park at Hungerford. 

“We thought we were male.” Litch- 
field said. The contract soon repre- 
sented half our income - it was for 
£35,000 over a six-month season. At 
that time we were turning over 
£70.000, employing two other staff, 
and also using a number of part-tim- 
ers to run the medieval banquet cos- 
tume hire business, which was also 
doing well." 

The pair did not think; twice about 
the repayments on a £5,000 loan they 
had taken out from Barclays, even 
though a condition was insurance 
cover that cost an additional £1,250, 
also to be repaid in instalments. 

The big blow came in the summer 
of 1991 when they Learnt that Little- 
cote was to dose as a historical theme 
park. Within a few months the Lease 
expired on the small shop premises in 
Newbury that they had rented 
cheaply and almost outgrown. 

They managed to find a vastly big- 
ger shop, with large workroom and 
storerooms, in a small shopping 
parade cm the southern fringe of the 
town. The rent was a reasonable 
£20,000 a year, but a condition of the 
deal was that they should renovate 
the premises. They were given the 
first year rent free, but spent £154100 
on the restoration work- To fund it 
Debbie took a £20,000 second mort- 
gage on her house. The other £5.000 
was spent stocking the shop down- 
stairs, which sells novelties and fancy 
dress equipment, as well as being a 
hire centre for fancy dress, hats, and 
evening gowns largely made by 
Debbie and her team. 

No sooner were they in fuQ swing 
again than a second upheaval hit the 
couple. A large hotel with which they 
had done £9,000-worth of business 
showed a reluctance to pay. They 
recouped £5,500 but had to sue for the 
rest which they eventually regained 
in April 1992. By then they faced a tax 
bill of £3,000 for their two good years, 
which they paid with difficulty. 

They had leased a computer, a eopy- 



An old-fashioned business: John LSchfleW and Debbie Goldsmith of Q*l Wardrobe In Eogftaii dvl war costwne at Baffle Abbey 


The battle for survival 


Clive Fewins looks at a company that has had to keep changing its tactics 


ing machine and an electronic till for 
the shop and had also bought a 
£10,500 new Renault high top van on 
hire purchase. 

“We were really caught in a classic 
credit trap," Debbie said. To add to 
their agony the trade they had tried 
to build up to plug the Littlecote gap 
- selling costumes to other fancy 
dress shops - proved a failure. 

“So many fancy dress shops were 
closing down due to the recession that 
we realised it was not going to work,” 
Litchfield said. “Fortunately we didn’t 
lose a lot of money over this. We 
merely diverted the costumes to ban- 
queting hire sets. But I spent a lot of 
wasted time an the road trying to 
build up custom.” In addition they 
saw a marked dip in the corporate 
events market - another direct result 
of recession-led cutbacks. 

"Although we were working desper- 
ately hard and earning quite good 


money we ware not turning over 
enough to cover our expenses. Our 
projections had been based on the fig- 
ures we were earning from Little- 
cote,” Debbie said. 

They made two staff redundant but 
in the summer of 1993 the bailiffs vis- 
ited, sent by Newbury District Coun- 
cil to collect arrears of business rates. 

"Although we had run out of 
money, we escaped.” Debbie said. "We 
were able to show the council that we 
had written asking for relief on our 
business rate and the council found 
that their reply to us had not been 
posted. Despite this error, we were 
not granted any relief and still had to 
pay tofulL 

"However, in the second half of last 
year things started to improve. We 
went to a lot of re-enactment events 
with our van and our stall, and the 
medieval banquets and corporate 
events started to pick up. In addition. 


we gained a lot of work from muse- 
ums, and the costumes we had begun 
to make for an educational supplies 
company after the littlecote disaster 
saw a good expansion. We had an 
excellent Christmas, and by our year 
end on May 31 our turnover should be 
back to £50.000. We are rapidly paying 
off our arrears.” 

The pair have escaped VAT liability 
by splitting the business into two. 
They are thinking of selling the hire 
side and concentrating on manufac- 
turing, as they both enjoy this side of 
the business and have a successful 
team of three outworkers. 

Sales to schools are good, and they 
have plenty of orders for standard 
domestic costumes of the civil war 
period, at £150 each, and top quality 
authentic historical costumes for 
museums, at around £600 each. Sales 
from the shop cover the wages of the 
part-timers who run it But the opera- 


tion would be sold off, together with 
banquet costume hire, as part of the 
costume hire business, if they decide 
to go through with the sale plan. 

"We could always see how it was 
working out arid start banquet 
costume hire again somewhere else 
not too far away. It seems to be a 
growth market at present,” Litchfield 
said. 

For the rest of the year, the pair are 
concentrating on what they enjoy 
best - taking their van to historical 
re-enactments and joining in the fun. 

“It is a very seasonal business. 
Although we are in a good patch at 
the moment we shan't easily forget 
what we have been through in the 
past three years,” Debbie said. "But I 
have a feeling we're winning.” 

■ The Civil Wardrobe, Newtown 
Road, Newbury, Berks RG14 7ER. 
0635-43806. 


MINDING YOUR OWN BUSINESS 


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Learn to 
manage 

Stephen HalUday looks at courses 
for inexperienced bosses 


M ike Stanley, 31, 
is works man- 
ager for Lynx 
Offset, a small 
printing business based near 
Oxford, which he joined 
shortly after It was established 
in 1988. He started as a 
printer, the trade be took up 
when he left school, hat Ms 
reliability and enthusiasm 
marked him for promotion. 

He is now works manager of 
a company which employs 20 
people and has a turnover of 
£l.2m, mostly printing jour- 
nals, catalogues and high qual- 
ity advertising material. 

He is responsible for hiring, 
training and supervising six 
print workers and for liaising 
with other supervisors to 
ensure customers’ orders 
are handled promptly and 
cost-effectively. He reached Ms 
position with no formal train- 
ing or experience of supervi- 
sory work. 

In 1992, Stanley's boss, 
Keith Nicholl, who founded 
Lynx, was contacted by the 
Heart of En gland Training and 
Education Council, based in 
Abingdon, which suggested 
that NldtoD might send one of 
Us supervisors on a training 
programme run In conjunction 
with Wolsey Hall. Oxford. This 
offered an NVQ level four cer- 
tificate in management 
The national network of 
Training and Enterprise Coun- 
cils was established In 1989 
with a particular responsibil- 
ity to improve training in 
small firms such as Lynx. 

The NVQs, or National Voca- 
tional Qualifications , are part 
of the nationwide system of 
qualifications designed to pro- 
mote higher standards of 
training in industry. Level 
four qualifications are 
intended for first line manag- 
ers who, like Stanley, are in 
their first supervisory jobs. 

Tbe course, which takes 
about a year, covers four areas 
of management: people, 
finance, information and 
operations. 

Stanley started with manag- 
ing people, first assessing Ms 
own capabilities against a 
checklist of items: minimising 
personal conflicts, remaining 
cabs in difficult situations and 
learning from mistakes. 

At the same time, Nicholl 
provided his own assessment 
of Stanley, using the same list 


A comparison of what he 
said About himself and what 
Ms boss said about him was 
used to help draw up a “devel- 
opment contract” wirich Stan- 
ley agreed with Us boss, 
emphasising those areas in 
which he needed most help. 

Tbe analysis had revealed 
that there were many activi- 
ties which Stanley was carry- 
ing out without appreciating 
their tmpticatious for others. 
For example, be often inter- 
viewed staff without malting 
any record of the outcome of 
the interview so that the par- 
ticipants could have widely 
differing views about what 
would happen as a result of 
the interview. 

Stanley then attended a 
series of eight one-day pro- 
grammes, on topics such as 
recruiting and training staff, 
organising meetings and 
establishing disciplinary pro- 
cedures, Guidance was given 
by the trainers, and thepartfo 
ipants compared their experi- 
ence. At the end of each ses- 
sion Stanley agreed upon a 
programme to be completed 
before the next one. At work 
he assembled evidence that he 
was using the techniques he 
had learned at the wotfcshops. 

An assessor visited him to 
check his progress and to 
advise him whether the "evi- 
dence" he was collecting 
would meet the requirements 
of tbe programme. 

After six months he had 
completed his "contract” for 
manag in g people. The C08t to 

the company was £50. The pro- 
gramme is subsidised by the 
Department of Education. .. 

Both Stanley and Nicholl 
agreed that the main benefit of 
the programme has been to 
make both of them think 
about Stanley’s responsibili- 
ties and tiie way he carried 
them out. Stanley is, with 
Nicholl’s encouragement, com- 
pleting the other three parts U 
the programme, covering 
finance. Information and 
operations which will lead to 
the NYQ in management 

Businesses interested in 
such programmes can canted 
their nearest TEC or college 
through their local Jobcentre. 
■ Stephen Balliday is Princi- 
pal Lecturer in Small Business 
at Buckinghamshire College 
Business School, a College of 
Brunei University. 


Traffickers 


Continued from Page I 


chewing, tea, and pharmaceuti- 
cal production. AD other hec- 
tara ge was defined as “esce- 
dentary”, and subject to 
phased, voluntary eradication 
in return for cash payment. 
Any new, post-1988 cultivation 
was declared illegal. Such a 
system, of course. Is wide open 
to spectacular abuse. Today, 
virtually all of Chapare’s 28,000 
hectares of coca go towards the 
making of cocaine. 

I left with an Umopar patrol 
at dawn three days later. I 
liked the 10 soldiers who made 
up the unit - they were 
uncomplicated boys from the 
countryside. But I found pen- 
cfl-moustached Temente Avila, 
the officer in charge of the 
patrol, an ominous character; 
anyone who wears black 
leather gloves in the humidity 
of tropical jungle is, as for as 1 
am concerned, creepy. 

Leaving behind a squad erf 
muscle-bulging, crew-cut blond 
Americans doing catesthenics 
in front of the esquela antt-nar- 
cotico, the DBA training school, 
we drove off into the bush. 
Normally I would have been 
fascinated with the discoveries 
that come with a tramp 
through the Amazon basin - 
thick rain forests, groves of 
giant bamboo, strange flowers, 
spiders' webs glinting with 
dew, blue butterflies as big as 
your hand 

I was more concerned, 
though, with what lay at the 
end of tbe narrow and difficult 
paths we were following: On 
some of them I could barely 
the see indications of h uman 
passage - the newly broken 
branch, the muddy footprint - 
that might or might not indi- 
cate the presence of apaza Md- 
den deep in the forest 

But these men were taking 
no chances. They studied the 
ground with great attention, 
walked with automatic weap- 
ons at the ready, and commu- 
nicated silently with hand sig- 
nals. Three times that morning 
we moved In cautiously on 
clearings where through jungle 
growth they had spotted the 
wooden stakes, the plastic 
sheeting, the discarded jerry 
cans and add bottles that give 
away a maceration pit 

Each time, though, we found 
the pom abandoned and the 


cocaine processors moved on. 
The entire area, in feet, seemed 
abandoned that day. The patrol 
moved through hamlet after 
jungle hamlet, each as dirt 1 
poor as any you might find to 
Africa, rifling through huts 
and looking for locals who 
might be paid or pressured to 
provide information. 

Whole villages were empty. 
Teniente Avila's eyes ghated 
with anticipation when once 
we came across a Baptist with 
a suitcase full of heavy books. 
But they were only books. 
Waste-deep swamps, clouds of 
mosquitoes, brain-deadening 
heat - by noon the thrill of the 
jungle had. began to wane. By 
late afternoon we were discour- 
aged and worn out 

Had Umopar’s anti-narcotics 
campaign scared the coaderos 
away from the region? Not at 
all We ran into tharo on tbe 
drive back. Organised by Cba- 
pare's powerful and militant 
coca-grower’s federations, they 
were gathered by the thou- 
sands at demonstrations along 
the highway. I was pushed 
down to the flow of the truck 
so my white gringo face - eas- 
ily mistaken for a hated DEA 
fece - could not be seen. With 
machetes banging angrily 
against the side of the track, 
we passed through a sea of 
jeering peasants. 

□ □ □ 

Has Umopar’s anti-narcotics 
campaign succeeded at all? 
Like many observers Peter 
Shaw, my former drug-dealing 
acquaintance to La Paz, says 
that until poverty disappears, 
the trade is likely to continue 
- there is just too much pres- 
sure and too much corruption 
to wipe it out otherwise. 

Shaw laughed when I men- 
tioned finding individual paras 
the big refining labs where too 
final refining process takes 
place, he sakl, are heavily pro- 
tected by pay-offs to govern- 
ment officials; so are the trans- 
portation routes out of the 
country. Worse, the trade is 
spreading eastwards into Bra- 
zil where a new cocaine thea- 
tre, as yet wholly uncontrolled, 
is rapidly opening up. 

A $l3hn annual budget not- 
withstanding, America’s drug 
war is likely to continue for 
some time. 



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A St Trinian’s summer rampage 

Fashion on a shoestring is investigated by our writers. Here, Avril Groom visits the jumble sales 


I have Just bought the 
rudiments of a summer 
wardrobe - two shirts and a 
jacket - for £27.95. Before 
you say that I must have 
either special contacts or extraordi- 
nary luck, let me tell you that any- 
one can do it. This is the summer 
when no one needs to spend much 
in order to look thoroughly d la 
mode. 

You most banish any residual 
belief that designer labels are good 
for you and any reservations about 
wearing clothes that have seen bet- 
ter days. Then you can join aQ the 
best people combing the rails of 
thrift shops, jumble sales and 
school outfitters. 

The ultimate in recession chic 
this summer is a clothing Item that 
has been shrunken, truncated, 
crushed, boiled to ribbons and 
squeezed to within an inch of its 
Ufe. You could pay a designer hand- 
somely to put clothes through an 
those processes. Or you could have 
fun - and save lots of money - and 
find examples for yourself. As this 
odd little look is not a long-term 
investment, it seems best to go for 


the second option. 

This is how 1 did it The skirts 
came from Jean Muir's sale. There 
you are, designer labels after all - 
but these skirts cost only £3 each. 
They are in her favourite* floppy* 
Hurel jersey and when I bought 
them they were dowdily box- 
pleated to knee-leveL Quite why 
Miss Muir did not see their poten- 
tial and price them accordingly I do 
not know, because with six inches 
chopped off (this cost £5 each), bey 
presto they are the new flippy skirt 
shape, in a fashionably school-uni- 
fn riTrish maroon a nice tan that 
wHl liven all this spring's dreary 
beige. 

Hie jacket was a bigger bargain. 
Doing my duty behind the counter 
at the local scouts’ jumble sale* I 
noted that elderly pinstriped jack- 
ets and waistcoats were being 


Slapped up - not by needy pension- 
ers but by bright young things. 

Even better, from the pile, I 
unearthed an original early 1950s 
coat in the black floppy, crepy wool 
currently beloved of avant-garde 
designers. Trendily walsted and 

fluted, silk-lined, with small revere 

and unobtrusive buttons, it cost me 
20p. All ft needed was a good clean 
and a foot off the bottom (£11.75). 

Also at the sale were plenty of 
shrunken, greyed, felted and crin- 
kled jumpers that had seen one hot 
wash too many. I did not need 
those because my wardrobe con- 
tains several examples that have 
formed spontaneously in my wash- 
ing machine. 

Now I know what to do with 
them: a fellow fashion writer tells 
me they look seriously chic worn 
with grey polyester school trousers. 


She waxes lyrical about the 
straight-legged John Lewis version 
of these. 

Not having the washboard abdo- 
men of the average 12-year-old 
schoolboy. I may give them a miss, 
hut Marks and Spencer has a pleat- 
topped version suited to paunchier 
lads (and lasses). Add a plain white 
school T-shirt, approximately for 
an age 10 size, vigorously 
scrunched in the wash and un- 
boned, and no one will know you 
have not spent serious money on 
Helmut Lang's neo-p unk look- 

in fact, the school uniform 
department of the local chain store 
is toe fashi on freak’s best friend 
this summer, supplying all the nec- 
essary ingredients for those who, 
unaccountably, have decided that 
St Trinian’s provides a valid fash- 
ion role model for grown women. 


The pleated games* skirt, the too- 
small school shirt, even ankle 
socks sauntered down expensive 
catwalks in the spring collections 
but the chain store version win do 
sterling service for a look of such 
sublime frivolousness. 

Far more practically, now that 
VAT has been removed on clothes 
intended for children with up to a 
37ln chest, to allow for the gener- 
ally baggy nature of youth fashion, 
ehildrenswear departments open op 
aQ sorts of possibilities for cheap 
CT<n wl dressing if yott are Ihan 
generously proportioned. Why use 
a so-called “petites" department 
when yon can get jeans, sweat- 
shirts and other basics in the same 
sizes bnt VAT-free? 

Then there is lingerie. Ever since 
Jean-Pa til Gaultier pnt Madonna on 
stage in coned-off corsets we have 


adjusted to underwear as overwear, 
everywhere. The latest twist is that 
the lingerie is preowned. The hot- 
fashion designer slip dress has its 
origins In 1930s bias-cut nighties 
and these are what thrifty fashion 
fans are buying, to cut short and 
plonk over a skinny white T-shirt. 
The fastidious get theirs sorted, 
washed and mended from 
upmarket second-hand shops: the 
less squeamish at jumble sales. 

If yon find all this a little seedy, 
there is always the chain store ver- 
sion. This will, of course, look too 
new so you must give it a very hard 
time In the wash. This process is 
known as ’'distressing' which, 
unless you are careful, might also 
describe the results. 

A safer option may be pyjamas. 
Classic drawstring trousers and 
loose shirts are this season's 


obverse of the fashion cote, the 
opposite of skinny and short As 
they look like pyjamas anyway, 
why not wear the real thing, often 
cheaper and better quality? Put 
them over the ubiquitous fitted 
body, while the enviable few with 
that washboard turn can buy a size 
too big so the trousers drop tren- 
dily to navel leveL 

This theme goes farther. Harks 
and Spencer’s spring nightwear 
includes a gracefully draped and 
pleated tunic and trousers that, 
with some metallic ribbon added at 
under-bust level, could convinc- 
ingly come from the Grecian-In- 
spired evening wear collections of 
Chloe or Romeo Gigli. 

All these ideas are mere sugges- 
tions. The dedicated fashion mon- 
ey-saver will doubtless think up far 
more inventive ways to sidestep 
designer bills this summer. Think 
what you could do with all the 
money yon are not spending on 
clothes this summer. Personally, a 
classic investment that I can Justify 
to my bank manager might be in 
order. There is a wonderful suit in 
Armani’s window . . . 



Although fliese garments were part of the M&S menswaar winter range, afmSar ones are sffl on sate. A coflartess linen shirt is 
£25, waistcoats about £30, and jeans £25 


Re-make 

re-model 

Lucia van der Post suggests there is 
no need to spend at all this summer 


I f, like me, you have been 
priced out of the designer 
label market, take heart. 
There are bargains to be had 
on the secondhand front (see Avril 
Groom, above) and I can add 
another suggestion - take the 
clothes you already own and wear 
th e m differently. 

For instance, it is perfectly possi- 
ble to boy all of the items in the 
accompanying photographs - but 
that is not the point of this art- 
icle. 

The point of the pictures is to 
show that this summer there Is 
very little need to buy anything at 
alL 

The chap who is so artfully photo- 
graphed here, by the Marks and 
Spencer men’s fashion foam , is sim- 
ply wearing a white shirt, a black 
waistcoat and some black cotton 
trousers. 

The trick that updates the look, 
and gives it a designer air, is that . 
the shirt is made of linen, the neck 
is grandad-style, it is over-sized and 
worn outside his jeans. The waist- 
coat (high-necked is best) is, of 
course, this year’s really important 
accessory for men and women. 

A careful look through any of the 
current fashion magazines will 
reveal that most of this year's look 
can be achieved for minimal outlay. 
For summer, a V-necked T-shirt 
(remember those years when noth- 
ing but simple round-necked would 
do?) can be had from M&S for £959. 
and could join the over-sized linen 
shirt in the wardrobe. 

T-shirts are also worn loose and 
outside the trousers. Men who want 
to freshen their off-duty wardrobe 
should swap their docksiders for 
Puma suedes (£49.99 from most 
good shoe shops) and that will do 
more for their image than a fancy 
label shirt or trousers. 

Sun -glasses are smaller, oval- 
shaped with thfo metal rims and 
the denim jacket has been replaced 
by a lightweight bomber jacket with 


a hood (anyone visiting New York 
will find that Brooks Bros has a 
classic model). 

Layer the clothes you already 
have and they will look absolutely 
brand-new - shirts should bang out, 
shortish sweaters can be worn over 
them, waistcoats can be worn loose 
and unbuttoned under j«pJn»ts and 
the tout ensemble will look as 
if it has just stepped off the 
catwalk. 

Much the same messa ge applies 
to women. 

Most probably already own at least 
one big loose shirt - the trick this 
summer is to wear it outside, with 
the cuffs undon e, and pithar a small 
high-necked waistcoat or your 
smallest sweater over it 

Put away your boxy jackets and 
blazers for another year and swap 
your stiff handbags for something 
soft and poachy. 

Wear silky soft cardigans, soft- 
ened even further by long drifty 
scarves. 

If you buy nothing else this 
spring get some raised-sole trainers 
(Russell & Bromley has excellent 
No-Name versions in several col- 
ours at £35 a pair) which, coupled 
with a loose, high-necked waistcoat 
will update last year’s flared trou- 
sers quickly and cheaply. 

Trade in your heavy-rimmed tor- 
toise-shell sunglasses for little 
granny shaped ones with fine metal 
rims. 

Finally, this summer, faces are 
being worn Calvin Klein-style - 
that Is to say the pale, luminous, 
minimalist look is in. The art lies In 
looking as if you are wearing 
almost no make-up while in reality 
goodly portions of it have been 
most artfully applied. 

This is far from easy and some of 
us are inclined to emerge looking 
wan and ill so if you can afford it 
possibly the best investment this 
summer is an hour or two at a good 
cosmetics counter or make-up art- 
ist 



The fu9 Evolve collection is not being launched until the autumn but the apron 
dress {MUSS) and shirt {£3859} can be bought by mail order, tefc 081-520 8808 




I 


Sunny thoughts for 
house and garden 


I f last weekend’s promise of 
S limm er raised your spirits 
and made you broach the mat- 
ter of outdoor life with some 
optimism, then you might like to 
know of a new mafi order operation 
called Crucial Trading. 

The catalogue offers a small, 
edited collection of “natural alterna- 
tives for the house and garden”. 
Lurking behind that vague - and 
these days fairly ubiquitous - claim 
are some attractive products. 

There are simple wooden garden 
seats and planters, some covered 
almost like gazebos. There are natu- 
ral coir paths - ideal for conservato- 
ries - starting at £10.95 and a mar- 
vellously capacious Crucial coir 
carry-all bag at £1455. 

There are some sensibly sturdy 
garden essentials - aprons, kneel- 
ers. holdalls and tool pouches in 
dark green and natural at prices 


ran ging from £755 to £1455. The 
galvanised watering cans in dark 
green or plain, range In price from 
£1955 to £3750. For lingering sum- 
mer days there are hammocks and 
picnic rugs and a small collection of 
colonial country furniture from 
India - divans and carved cup- 
boards. 

Everything can be bought by 
mail, die catalogue costs £1 from 
The Crucial Trading Post, The Mar- 
ket Hall Graven Arms. Shropshire 
(tel: 0345-666860). Those who would 
like to browse can see much of the 
range at 79 Westbouzne Park Road, 
London W2 5QEL Tel: 071-221 9000. 

If your garden, or your tastes, run 
along grander lines, Sotheby’s 
annual sale of garden statuary and 
architectural items takes place at 
Summers Place, BlIHnghurst, West 
Susses, on. Tuesday May 24. 
Although many of the items are 


grand, the estimated prices seem 
reasonable - a pair of wrought iron 
gates. French, second half of the 
19th century, is estimated at 
between £400 and £800, there are 
fountain heads at £200 to £300 and 
wrought iron garden seats at £300 to 
£500. There are statues and foun- 
tains, stone troughs and urns - all 
the accessories the grand garden 
requires. 

A catalogue costs £12, (from 
Sotheby’s, Sussex) and viewing 
days are from Friday May 20 
through to Monday May 23. 

finally, good news on the price 
front. About four years ago I men- 
tioned Jane Tennants collection of 
colonial-style planter’s chairs, 
which cost £285 each. Today she has 
a new collection, bought as were 
the ori ginals , in Sri Lanka, but sell- 
ing for £199 each. The quality is 
exactly the same - they are made in 




Chairs bom Sana Tamanfs naw eoDeCtton 


authentic planter’s style from an 
indigenous wood (which she tells 
me is carefully controlled and 
replanted) called Suriyamara, and 
the cane-work is exceptionally fine. 
She sells them without cushions - 
keHm-covered cushions look partic- 
ularly good with them - and 
although she will deliver it will cost 


extra. Most people she finds prefer 
to look first and then buy. 

Available from Market Trading, 
44 Burlington Gardens, London W3 
6BA. Ring for an appointment 
(081-992 9255) as she operates from 
home. 

Lucia van der Post 



For the garden smart set 1mm Cnidal Trading: hoMafl (£1245), tool pouch and belt 
(E75S), apron (E&55), knoopads (£1455), and a variety at gafvsnfctod traditional 
watering cons (from £1955) 


Small and upwardly mobile 


I have always been ambivalent 
about mobile phones. Once 
thought of as irredeemably 
naff, they are, I am forced to 
admit, terribly useftiL 
Never mind swanky conversa- 
tions with stockbrokers or secre- 
taries, it is when one breaks down 
on a motorway at night, is late for a 
lunch-date or stuck in a traffic jam, 
that the mobile phone takes much 
of the stress out of the situation. 

If you are not sold on the idea of 
the mobile, Cellnet (to which sys- 
tem the phone is connected) offers 
another incentive to fibbers. 

"A mobile,” Cellnet tells us in a 
little oeuvre dealing with the mod- 


em etiquette problem of mobile 
manners, “is genuinely mobile; sub- 
scribers get a number which cannot 
be traced by its dialling code. The 
possibilities are limitless: a schiatsu 
massage - coupled with a weekend 
at a country house hotel - might 
easily pass for an afternoon of 
auditing at the family accountant 
With a mobile you are never out of 
touch.” So now you know. 

The new Sony mobile telephone, 
the smallest yet devised, addresses 
my main objection - their high visi- 
bility. The Sony version is smaller 
than a pack of playing cards which 
means it will fit a shirt pocket or a 
woman’s handbag. It has a small 


earpiece (much like the Sony Walk- 
man) so that the booming tones 
that people on the other end of 
mobiles are prone to use are inaudi- 
ble to all except the user. 

It also seems - at about £450 if 
you pay full retail price - to be 
about the most expensive yet 
devised but if you shop around you 
can, I am told, find it for £200. 

It weighs just 185 grammes, the 
battery gives 60 minutes talking 
time and 14 hours of standby time. 
It takes about 50 minutes to 
recharge with a rapid charger and it 
can be adapted for use in the car. 

LvdP 


The World's Fiaesi Men's 
Underwear. 



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The new Sony moble telephone, the smallest yet devised 






X WEEKEND FT 


FINANCIAL TIMES WHEKEN^^AY^MAY^994 ^ 


PERSPECTIVES 


S nail platter? Snails in a 
spring onion sauce? Such 
thoug hts occurred to me 
as I made my nay to the 
Savoy Grill, London, for 
lunch with Dr Steve Jones, one of 
Britain's wittiest and most accessi- 
ble commentators on the mysteries 
of science. 

As a malacologist and gen e ticist, 
Jones has studied snails for more 
25 years, and has said he 
would rather be regarded as the 
world's foremost snail geneticist 
than as a world-class communica- 
tor. Come to think of it, he added, 
he mas the world’s foremost snail 
geneticist; there were almost no 
others. 

In the event. 1 forgot about snails. 
We both had oeufs cocotte, after 
which our preferences diverged in 
textbook fashion; his to grilled tur- 
bot, m ftng to the caremalised ghnn- 
ness of the Savoy's braised axtafl. 

Anyway, says Jones, he is virtu- 
ally "snailed-out”. These days he is 
into slugs. T am used to being 
mocked for snails, but slugs are 
guaranteed to stun anyone into 
silence." 

He is professor of genetics at the 
Gallon Laboratory of University 
College, London, and gave the 1991 
Reith Lectures on BBC radio on 
genetics and evolution. They were 
widely praised and led, last year, to 
his well-received book. The Lan- 
guage of the Genes, now selling 
briskly in paperback. 

He is working on a new book, 
Sex, Age, Death, as well as a BBC 
television series - seven 50-minute 
programmes - called Origins. I bad 
wanted to meet him since receiving 
a copy of The Language af the Genes 
for my birthday, inscribed, errant 
ously, by an otherwise reliable col- 
league: “To Michael, on your 
50th ... so old. yet stOl evolving” - 
an over-statement of 2.040816 per 
cent. 

Jones is 50. He was in high, spirits 
when we met He had just cele- 
brated his birthday and sloughed 


Lunch with the FT 




A snail man making tracks 


Michael Thompson-Noel meets Dr Steve Jones, geneticist and commentator 


off, after five years’ toil, the “night- 
mare" burden of the chairmanship 
of his department. He is treating 
1994 as a sabbatical year. 

His hatred of bureaucracy runs 
deep. The new Britain, he has writ- 
ten. “gets more like the old Soviet 
Union every day - forms in tripli- 
cate, reports to higher authority, 
and five-year plans. Nowhere is the 
new Stalinism mare obvious than in 
education”. 

And, like many scientists, he has 
had immense difficulty getting 
funds for research - 10 appeals 
have been rejected. “Over the years 
I have resean&ed different things - 
mainly fruit flies, and Slugs. 

When I was an undergraduate l was 
given a research project on snails, 
and It has taken more than 25 years 
to finish it. In real terms the 
amounts I have asked for have been 
going down, while the real costs 
have gone up. because of technol- 
ogy. Like health, there Is no limit to 

the amnimt you can spend on sci- 
ence.” 

At least his public profile has 
given him the freedom to comment 
tartly on thing s that displease him 
including professorial pay. I said 
that 1 imagined his book sales and 
journalism provided useful extra 
income. “Certainly," he said. “My 
salary as a professor is £3-1500; for 
Origins, the BBC is paying me twice 
that I'm not particularly complain- 
ing about my salary, hut I am com- 
plaining about trying to recruit peo- 
ple in their late 20s for £17,000.” 

He is a small and intense man, 
spike-haired, who speaks so quickly 
that it is hard to hear him property. 



a good read. Yet often, humour does 
not travel The Language of the 


The day he telephoned, I had to ask 
him to repeat himself 

“Sorry,” he said, “I tend to mum- 
ble." 

“Where would you like to l u nch ? " 

“Anywhere,” he said. T often 
mis« out lunch. Isn’t there a restau- 
rant at London Bridge?” 

“Oh, no," I raid. "You’re thinking 
of one of Terry Conran’s. The food's 
quite good but the acoustics are 
dreadful I mumble, too. Anyway, 
for Lunch with the fT we're entitled 
to kill toe fatted caff I'll take you to 
the Savoy." 

We were awarded the best table. 
The professor surveyed the room 
with immense caution. I told him 
that In myth, the Savoy Grill at 
lunch-time was populated by mov- 
ers and shakers, but that in my 
experience most of the customers 
seemed obsessed with just one 
topic the D-Mark-doDar rate. 

The professor smiled winterily. 
He is a humorous man himself. It is 
one of the reasons his book is such 


the Netherlands, Germany and 
Korea, and a US print ing is being 
readied, but be is not sure bow it 
will be received in the US. 

In a chapter called The Eaohrthm 
of Utopia, Jones says that the (fairly 
recent) change in human mating 
patterns - outbreeding - may mark 
the beginning of a new age of 
genetic well-being. “Outbreeding,” 
he writes, “is not usually due to 
deliberate policy. Much af it 
arises... as a by-product of social 
change . ..there is little doubt that 
the most im p o rt ant event in recent 
human evolution was the invention 
of the bicycle." 

Fine, you might think- “But I am 
having great trouble with the Amer- 
ican editors,” says Jones. "They 
didn't get the bicycle joke. I 
gjpiatned it ’But the bicycle isn't 
vray old,’ they said. ‘Shouldn’t you 
say the wheel? But then they raid' 
•What about Australia? The first 
people who got to Australia got 
there by boat Shouldn’t yon say 
that the most important event in 
recent human evolution was the 
invention of transportation?'” 

I flfltorf Jones whether he was fed 
up with people asking him to pre- 
dict their gene-ordained futures - 
whether they would die of this dis- 
ease, or that But they do not Jones 
knows which blood group he is, but 
almost nothing else about his own 
genetic makeup. And he thinks it 
possible that despite rapid progress 
in ge neric^ research, many people 
will not want to know what the 


future holds. 

Even so, genetic testing raises 
great ethical and practical ques- 
tions. Already, for example, insur- 
ance companies are refusing to 
insure those doomed to Hunting- 
ton’s disease, and there are many 
niimonfgi of a similar kind In 
Britain, about 10,000 people have a 
one in two chance of carrying the 
Huntington’s gene, but only a small 
number have come forward since 
the test was first offered in 1987. 

"What does impress itself on me," 
says Jones, “is not curiosity about 
genetics hut the way people blame 
science and scientists for had news 
of all kinds. It is extraordinary. 
Even ostensibly well-educated peo- 
ple hold science accountable for the 
thing s it discovers. I tell them that 
the dangers from progress in genet- 
ics are far less marked than those 
in physics and chemistry.” 

At the end of The Language of the 
Genes, Janes argues that the human 
biology of the future may not be 
very d iffe r en t from, that of the past 
It may even be that “humans are 
almost at the aid of their evolution- 
ary road that we are as near to our 
biological Utopia as we are ever 
likely to get” 

I said 1 t houg ht this sounded con- 
servative. “Science,” agreed Jones, 
“is intrinsically an intensely conser- 
vative occupation.” 

I said I had been struck by the 
difference between the short shrift 
he gives eugenics and his descrip- 
tion Of the potential for combatting 
hmnan dlsaasg and im pro vi ng the 
human condition offered by gene 
therapy and biological engineering 



refl lL 




tort iv 


Steve Jones: ■Science to fc m tra tea By an tntanraftr co m sn»Bv> occupation" 


- applied evolution. 

“Surely," I said “the eugenidsts’ 
basic wish, to improve the fitness of 
humanity, was not, in itself, con- 
temptible? Won't genetic screening 
and gene therapy help do the trick? 
You say in your book that in life, 
tinkering works,' and that *the new 
biology has brought little but bene- 
fit’” 

He agreed: there could be nothing 
wrong with wishing to improve 
human health or the lot of the dis- 
advantaged Nor was there any- 
thing mtrfnsii-any unwise with the 
conviction that a smaller world pop- 
ulation might help humanity. 


But he was determined to hold 
the line there. After all Francis 
Galton, Charles Darwin's odd-ball 
cousin and the father of eugenics, 
founded the laboratory in which 
Jones now works at University Col- 
lege, London - the world's first 
h uman genetics institute. 

“The agenda of the original 
eugenicists was to improve the 
human race," said Jones, “whereas 
the agenda of modem genetics 1 b to 
improve the health of hundreds of 
thousands of people. That is the dif- 
ference.” 

We found no time whatsoever for 
the D-Maik-doUar rate. 


Financial Times Round the World Ski Expedition / Amie Wilson 

Dangerous descents in 
Mont Blanc’s shadow 


Facts and Figures; :" r ; 


■*«TOd|rfeeiKl^2(rotefcl3^2SJ 
IteaorCs ufstfmf so tec 14S 48; 

.Italy: 10: Gwraany: 1; Fnnjoe: 21; Swffa&abd 2tl ■; \ 

r ? ^ ' 

. Resorts skied in April s * ■.>?£:/!■* ; T • 

Anuria: teoftfltNajders. . ’Vr-'. . 


Amie Wilson and Lucy Dicker 
are trying to ski every day of 
1994 on a round-the-world expe- 
dition. They began in Ninth 
America, mooed to Europe hi 
March, and are now on their 
way to India and Japan. 


H igh above Cha- 
monix, Lucy 
gazed is wonder 
at tiie astonish- 
ing array of nee- 
dle-sharp peaks, huge seracs 
and moraines and said: “This 
must be the most awe-inspiring 
and beautiful descent on skis 
in the world." We were half 
way down the Envers du Plan 
route to the Mer de Glace, and 
allowing for possible French 
bias, she could be right We 
shall see. Perhaps there will be 
something to cap it in the 
Himalayas next week. 

Both the pace and the tem- 
perature of the Financial 
Times Round The World Ski 
Expedition are hotting up. Far 
from relaxing towards the end 
af our 524 miles of skiing in 
April (more than 100 vertical 
miles), we have been skiing 
some of the most demanding 
off-piste slopes in the French 
Alps: in Courchevel. Val 
dTsife/Tignes, Argentine and 
Chamonix. 

And before dashing to 
Geneva for our flight to Delhi 
we set off bright and early on 
Wednesday morning for a 
15km extravaganza down the 
Valfee Blanche, to be followed 
almost immediately by helicop- 
ter skiing in Val Grisenche, 
Italy, with Jean-Marie Olanti, 
our host in Chamonix. 

There are more than 100 gla- 
ciers in the Moot Blanc massif. 
If your guide is patient and lets 
you admire the view on the 
way down, you can see dozens 
fiom the Vallfee Blanche alone 
- and a myriad crevasses. 

Our guide, Jean-Paui Salma t, 
knows his way around them as 
well as any man: his great 
great great grandfather, was - 
with a Docteur Michel Paccard 
- the first to set foot on the 


summit of Mont Blanc on 
August 8, 1786. During our 
descent we also met Georges 
Payot, another guide, whose 
father was killed by an ava- 
lanche during the attempted 
rescue of passengers from an 
air crash in 1950. 

There are three main routes 
down the Vallfie Blanche from.' 
Chamonix's spectacular 
Aiguille du Midi (12,602ft). The 
ma in one, which most skiers 
take, is fairly easy skiing but 
potentially dangerous because 
of the Glacier du Gtent, a huge 
serac and crevasse field below 
the Refuge du Requin (the hut 
below the Shark’s Tooth). The 


There are definite pros and 
cons about chalets. The food a£ 
the Gras Caillou was excellent, 
but the lock an the downstairs 
lavatory /bathroom did not 
work easily, so one of the 
guests (a TV producer) was 
interrupted twice during her 
Jjath. 

Chalet staff are wonderful 
inventions, and we conldhave 
done with them down the road 
in Champagny-en-Vanoise 
where the accommodation we 
were given was grubby enough 
to prompt Lucy - dressed for 
skiing - to roll up her sleeves 
and do some cleaning. 

They would also have been 


When Lucy fell during our descent 
of the Envers du Plan, she was not 
that far from a gaping crevasse 


other two routes - the Vraie 
Valfee Blanche and the Envers 
du Plan - are steeper and 
much more enjoyable for stran- 
ger skiers, with plenty of genu- 
ine off-piste terrain. 

Such runs are new to Lucy, 
who only a year ago could 
never have handled such con- 
ditions. But during the past 
four months she has experi- 
enced just about every kind of 
descent in very kind of snow. 
Her ski school report might 
read: “Enthusiastic, but Lucy 
still has a tendency to sit too 
Ear back when turning in diffi- 
cult terrain, with the result 
that she sometimes shoots out 
of the turn too fast and loses a 
little control” 

This could be dangerous in 
glacier country, and indeed, on 
the one occasion she fell dur- 
ing our descent of the Stivers 
du Plan, dose to a gaping cre- 
vasse. 

In Val d’Isdre and Cour- 
chevel Lucy and I stayed in 
chalets for the first time dur- 
ing our expedition and found it 
hugely en te rtaining - i am not 
sure that all the other guests 
shared our view. 


invaluable when Margit Pfund, 
the director of tourism at St 
Gallenkirch, Austria, who bad 
with great pride taken us to 
lunch at the Nova Stoba, the 
resort’s top mountain restau- 
rant, discovered, after a long 
wait that the waitress had for- 
gotten her lunch (but fortu- 
nately, not ours). 

While we waited, Edwin 
Ganahl the director of the S3- 
vretta Nova lift company 
quenched our thirst in the 22*C 
heat with sparkling wine. This 
was less lethal than the “Black 
Widows” showered on us the 
following day by Ganahl’s 
opposite number Emil Isele in 
neighbouring Gargellen. This 
concoction - Mrsch-tlavoured 
coffee with cream - was 
offered at every pit stop until 
Lucy called a halt saying: Too 
many Black Widows for Arrde 
will make me a real one.” 

It was Emil, who greeted the 
Prince of Wales during his last 
unofficial trek across the Swiss 
border from Klosters. Uncer- 
tain as to whether Charles 
would go for Black Widows, he 
settled for serving him a 
Schnapps. 


COURSES 


1 ?ACU'.TY C? H'JWAS SCIENCES 1 




MSc/Postgraduate Diploma in 
Business & Economic Forecasting 


PART-TIME or FULL-TIME 

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<1 N G S T 0 N 

U N 1 V E A S 1 T T 



Frontiers seem to have little 
relevance when one is an skis. 
Just as the Prince was able to 
ski from Switzerland into Aus- 
tria, on April 1 (when Lucy Ml 
for my April Fool’s joke that I 
did not feel like skiing that 
day) we did the reverse, from 
Ischgl to toe duty-free Swiss 
resort of Samnaun, where to 
our relief we were able to use a 
credit card for lunch. 

Almost no one in the Aus- 
trian mountains accepts plastic 
which meant we were forever 
having to try to extricate cash 
from automatic dispensers. 

Centuries ago when Sam- 
naun was cot off from the rest 
of Switzerland, the villagers 
struck a deal allowing them 
huge tax concessions. This cre- 
ated a smugglers’ paradise, and 
the story goes that one villager 
from Ischgl using the common 
excuse of crossing into Switzer- 
land for a “day’s hunting”, 
bought a consignment of ciga- 
rettes, went straight to Inns- 
bruck without even stopping to 
sleep, sold the cigarettes for 
five times what he paid for 
them, antj after farther trade- 
offs, surprised his wife by 
returning to Ischgl from his 
“hunting trip” with a live Ox. 

There is little scope for 
smuggling when crossing the 
border by chairlift, and new 
lifts between the two resorts 
are bong planned. 

The Swiss can be odd about 
their lifts: in Leysin we found a 
chair (or rather did not find it) 
which has been an the lift map 
for almost 10 years - although 
it does not exist It was 
planned for the winter of 2967/ 
88, but was never installed. 
Newcomers to the resort some- 
times search in vain for it and 
have been known to become 
quite upset when they discover 
it simply is not there. 

In Films most of the lifts 
have been upgraded, but one - 
the Stargels - still judders and 
jolts its way to the top of the 
mountain as It has done for 
years. Nursing a sore shoulder 
after a bumpy ride, I asked 
Sh elly Kuratli, the resort's 
marketing manager, when they 
were going to replace it. 
“Soon," she said, adding - with 

itigg vr nmg hOOfiSty — that thu 

Mt was so famous for its rongh 
rides that it was known as the 
“Tumble Dryer”. 

One must not be too critical 
We may encounter worse 
before the year is over. 

And so to India and Japan. 
As I gaze up directly at the 
vast white dome of Mont 

Blanc, hftaWng in fha lata after- 
noon sunshine, I find the 
unfortunate link between 
Indian airliners and Mont 
Blanc playing slightly on my 
mind. 

Two of them crashed on the 
summit of Mont Blanc - in 
1950 and 1966 - and to this day, 
climbers still find gruesome 
rehes of the tragic events. 

Looking up, it is not difficult 
to imagine how pilots would 
need to take great care not to 
commence their descent into 
Geneva airport too early. 

Luckily, we are flying in the 
opposite direction. 


‘Could you 
spare five 
minutes?’ 


.ffcsbfts skieid in-; 

'.An»tria: Ischgl Naidets: 


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!Frahc« Macaw* Mfdbati • 


Journalist John White tells his 
own experience of redundancy 


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B irthday presents 
come in- all shapes 
and sizes. On the day 
before my 38th I was 
made redundant. As a journal- 
ist I had written plenty about 
unemployment over the years, 
but I soon found I had never 
really understood the word: 
redundancy. 

I was not alone in facing the 
call-up to the ranks of the 
unemployed. First in line was 
the editor of our Emap-owned 
Cambridge-based free newspa- 
per, known quaintly as the 
Town Crier. And queueing 
right behind me was our pho- 
tographer. Three out of five 
members of the editorial staff 
out of a job in less than 15 
minutes. 

Mick Ferris, the editor, was 
summoned to the managing 
director’s office with the appar- 
ently innocuous phrase: 
“Could you spare five min- 
utes?" 

five minutes, 10 minutes, an 
hour, days, weeks, months. 
M i ck had plenty of time (m Ms 
hands, though he did not at 
that point know It 
He returned clutching a 
white envelope in one hand 
and moved to turn off his com- 
puter terminal. He had been 
told not to talk to the rest of 
us, he said, but he had been 
made redundant and they 
wanted to see me next 
Knowing the state of the 
economy and realising our 
small-time outfit had been los- 
ing money for some time, I had 
been mentally preparing 
myself for this moment for 
more than a year, while con- 
tinuing to hope for the best 
I had reached 37 years and 
384 days without having to 
“sign on” but time was run- 
ning out 

1 was motioned to sit on the 
other ride of a boardroom-style 
table that looked larger and 
longer than I had noticed 
before. Facing me was David 
Nizol. the boss, recently 
recruited from London's Yel- 
low Advertiser free newspaper 
group. He had shaken bands 
with me a few weeks earlier on 
being given the usual first- 
morning meet-the-people tour. 
At his side was Anthony 
Hawks well, the newly-ap- 
pointed group editor, looking 
rather stiff and awkward. 

Something was said. I do not 
remember what. It was man- 
agement-speak. I do recall ask- 
ing the face in the distance to 
cut toe nonsense, but appar- 
ently there were procedures to 
go through. Whatever they 
were, I did not hear them and 
they amounted to no more in 
my Language than: “You're 
redundant" 

Immediately afterwards the 
whole thing does not feel too 
bad. There is a comforting, sort 
of numb feeling and everything 
seems to be happening at a dis- 
tance. Is this shock? It should 
not be. Today, everyone knows 
a little white envelope with 






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their name on it may be talk- 
ing in their manager’s; tt^ 
drawer. 

For whatever reason, for 
some time everything seems 
unreal A chunk of your Ufa 
has been taken from you and 
you know it has; a part of your 
existence has been torn from 
you, but your brain has not got 
round to accosting that an irre- 
versible change has taken 
place. 

And so, people malm appro- 
priate noises saying how sorry 
they are (and they really are) 
and you go through toe 
motions of accepting with good 
grace and a forced smile, their 
condolences and commisera- 
tions. 

By toe time it gets to two or 
three in the morning and you 
still have not been to sleep, 
you decide to put toe kettle on. 

You find yourself using a 
secondhand teabag and con- 
sciously thinking that you're 


‘The mouth 
opened and said 
it thought it was 
being reasonable ' 


having to save money now. 
You tell yourself yon are cop- 
ing quite well - and you proba- 
bly are compared to any others 
burled into the psychological 
abyss of redundancy. 

Your situation is not as bad 
as it might be. Your partner is 
working. You have worked but 
your finances. You will be able 
to survive, jnst 

Now 1 think about it, I do 
recall same phrases, and one hi 
particular. The face on the 
other side of the table mut- 
tered something amazing as it 
was about to hand me my 
envelope. The mouth opened 
and it said it thnng ht it was 
being quite reasonable about 
all this. Could it hear itself? 
Did it believe what it was say- 
ing? 

When your time comes, yon 
are expected to rit on the other 
side of that table, conducting 
yourself in a civilised fashtoD- 
You are expected to accept 
that “rationalisation” is vital 
for the future viability of tbs 
company, that the “managerial 
bullet” has to be bitten. 

There Is a form to be fol- 
lowed, as if the ritual will take 
away the pain for you and 
absolve others of responsibil- 
ity. We must behave reason- 
ably, maintain our posturing 
as sensible grown-ups. 

Unless we experience it W 
ourselves, it seems, we have no 
understanding of the way in 
which redundancy rips peo- 
ple's fives apart, tearing up toe 
fabric of their home, stripping 
them of their sense of self- 
worth, and destroying their 
experience of being valued peo- 
ple with a place, a role and a 
stake in toe community. 


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FINANCIAL TIMES WEEKEND MAY' 7/MAY 8 1994 


WEEKEND FT XI 


PERSPECTIVES 






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Vietnamese 
remember 
the day the 
fortress fell 

Paul Cleves on the 40th anniversary of the 
French surrender at Dien Bien Phu 

F 


orty ^ears ago this weekend in 
a remote comer of north-west 
Vietnam, the French garrison 
of Dien Bien Phn surrendered 
to the besieging Communist 
Vietnamese forces. To preserve a little 
amour-propre. General Christian de Cas- 
tries, the French commander, raised no 
white flag but simply ordered his troops to 
cease fixing. 

The French, French Union and Foreign 
Legion forces were exhausted; with nearly 
2,000 dead and 7,000 missing or wounded 
after 55 days of remorseless fi ghting they 
had been pummelled into the mud » nd 
could resist no longer. The loss of the 
battle marked the end of the first Indo- 
china War. Had a 37-year-old John F Kenn- 
edy taken more careful note of the French 
defeat, the appellation first would be 
redundant 

In Geneva, on Saturday May 8, 1954, 
Pham Van Dong, later to become Prime 
Minister of a united Vietnam, listened to 
the strained voice of Georges Bidanlt, 
French Foreign Minister, as he conceded 
defeat 

Negotiations at the Geneva peace confer- 
ence had ebbed and flowed, reflecting 
events in Vietnam. But General Vo 
Nguyen Giap, commander of the Commu- 
nist Viet Mirth, had dealt this historic vic- 
tory in the nick of time. 

Holding the moral and military high 
ground, as well as 7,000 newly-captured 
French prisoners, Vietnam had a strong 
hand. During the next 74 days of negotia- 
tions, the French recognised the Commu- 
nist government of the north and the end 
of 150 years of colonial rule in Vietnam. 

The battle of Dien Bien Uni was one of 
the most decisive battles of this century: it 
spelt out clearly what was known to many 
but what others chose to ignore - colonial- 
ism was morally unacceptable, economi- 
cally ruinous and now militarily unen- 
forceable. _ - 

But what was Dien Bien Phu? And why 
did such significance attach to the loss of 
the French fortress? The town of Dien 
Bien Phu and its wide open valley pro- 
vided access to the upper Mekong River 
and to Luang Prabang, the royal capital, 
and Vientiane, the administrative capital, 
of neighbouring Laos. 

General Henri Navarre, the French 
supreme commander in Indochina, was 
determined to prevent further Viet Minh 
incursion into Laos and built the fort to 
block the route. Dien Bien Phu's signifi- 
cance was simply this: if the French, with 
US support, could not hold just one strate- 
gic fort their authority in Vietnam (ever 
tenuous and always imposed) was at an 
end. 

By March 1954, after five months of fitful 
progress, the French garrison was more or 
less ready: the central command post, 
complete with underground hospital, air 
strip and howitzer emplacements, was pro- 


tected by outlying strungpoints atop Bank- 
ing hills, each within range of supporting 
fire from its neighbour. 

But the strungpoints, supposedly named 
after de Castries’ mistresses - Beatrice. 
Gabrielle, Anna-Marie among than - fell 
like dominoes: Beatrice fell after just one 
day’s fighting. 

The French defence disintegrated, 
revealing flawed strategy and hopeless 
under-estimation of what a mobilised Peo- 
ple's Army could do. 

The Viet Minh dragged heavy artillery 
anfl anti-aircraft g uns over high mm inform 
passes to positions in the forested hills 
surrounding the French camp. Tunnels 
were dug right through these hills and 
Viet Minh artillerymen were able to fire 
from them with virtual impunity, con- 
cealed by jungle. 

Shells rained down on the French, 
almost immediately preventing use of the 
airstrip and isolating the str ong points 

The loss of the airstrip was a catastro- 
phe: supplies could not be landed and the 
wounded, who could not be evacuated, 
idled up in recesses in the walls of the sick 
bays and then the trenches. Reinforce- 
ments, food, medical supplies (whole medi- 
cal teams), ammunition and fuel had to be 
parachuted in. 

As the Viet Minh advanced with what 
Giap called “a tactic of combined nibbling 
and full scale attack”, so the French-held 
area shrunk from ID to two, to just one 
square kilometre. 

And as the drop zone into which man 
and material had to be parachuted grew 
smaller, so the flak; which civ ilian and 
military pilots had to face intensified. 
Experienced US pilots claimed the bar- 
rage, from Soviet and Chinese-supplied 
37mm anti-aircraft guns, was worse than 
any they had experienced over heavily- 
defended German targets 10 years 
earlier. 

S o the Dakotas and Cl 19 trans- 
ports flew higher and higher as 
the drop zone grew smaller ami 
smaller. Dreadfully high losses 
followed, as parachutes drifted 
over enemy lines. 

As the action progressed, the belea- 
guered encampment found itself on the 
sharp end of its own shells - most terrify- 
ingly the delayed-action 105mm shells, 
which, penetrated the bunkers before 
exploding - unlike the normal variety 
which exploded comparatively harmlessly 
upon impact 

Luck was against the French too: in a 
freak incident, a hapless pilot rolled to 
avoid the Oak and accidentally dropped on 
to Vietnamese lines a pouch containing 
detailed maps of French positions, the lat- 
est aerial photographs pinpointing Viet- 
namese anti-aircraft positions and code 
na mes of all enemy targets. 

The pilot had pushed back his canopy in 



preparation for a drop, but became 
unnerved by the accuracy of Vietnamese 
shooting and banked. The pouch fell from 
the cockpit 

Memories of two of the better-known 
heroes of the battle have faded with time 
but merit recall Both were medics who 
became trapped at Dien Bien Phu. 

Genevieve de Galard-Terraube, known 
as the “Angel of Dien Bien Phu". was a 
medical orderly who travelled on the evac- 
uation flights that flew between Dien Bien 
Km and Hanoi in the early days of the 
siege. 

When she became trapped after her air- 
craft was blown-up on take-off, she 
remained to care for the wounded. “She 
was the only one who could get the 
wounded to be content with five cigarettes 
a day without grumbling," remarked camp 
doctor Major Paul Grauwin. 

Grauwln himself had agreed to stand in 
at Dien Bien Phu for a fortnight as a 
locum, prior to sailing home to France. He 
too became trapped when the air strip was 
dosed. He operated on hundreds of abdom- 
inal cases and head wounds, and he ampu- 
tated dozens of limbs in the field 
hospital. 

Conditions deteriorated as the monsoon 
set in: water streamed along the passage- 
ways and the day floor became a sea of 
mud into which discarded needles fell. 
And heat and humidity produced a plague 
of flies and maggots, crawling over the 
hands, faces and ears of wounded men as 
they slept at night. 

Grauwin tried to allay the men’s panic 
by explaining that the maggots ate only 
pus and rotting flesh leaving a nice dean 
wound. 

But in spite of French heroism, and the 
best efforts of the large German contin- 
gent of the Foreign Legion, Dien Bien Phu 
eventually fell, finally overrun by the 
waves of Viet Mmh infantry sacrificed by 


General Giap in response to pressure from 
Geneva for a quick, decisive result. 

Perhaps the greatest tragedy of Dien 
Bien Phu is that the Americans, who 
worked closely with the French in supply- 
ing the garrison, and who at one stage 
offered bombers and even discussed the 
use of nuclear weapons, failed to see how 
the French experience applied to their own 
military adventurism in Vietnam less than 
10 years later. 

It is quite remarkable that they not only 
believed they could bold a now-divided 
Vietnam by force but they made the same 
tactical errors and fell prey to tried, tested, 
and perfected Vietnamese strategies. 

The US was, of course, blinded by the 
holiness of its crusade. But the cost of 
America’s pledge to pay any price or bear 
any burden for the survival of liberty was 
to be millions of Vietnamese lives. 

Today, 40 years on. the scars of battle 
have healed and France is one of the larg- 


est foreign investors in Vietnam. It is 
nearly 20 years since the unification of 
Vietnam, and in north-west Vietnam, the 
government is preparing the country's 
newest tourist attraction. 

De Castries’ bunker has been rebuilt; the 
battlefield is liberally scattered with rust- 
ing tank hulls (eight in all - two others 
still see service in the Vietnamese army); 
and American-made 105mm and 155mm 
howitzers point menacingly skywards, 
complete with their maker's stamp - 
United Engineers & Foundry Co - or servi- 
cing details and acquisition number, ORD 
DEPT M2A1 152473. 

On hill Eliane 2 (scene of the fiercest 
figh ting and known to the Vietnamese as 
Al) is a war memorial, a bunker and a 
tank, Grazielle. 

Around the back of Al is the entrance to 
a tunnel dug by coal miners from Hon Gal 
The shaft ran several hundred metres to 
just below the French strongpoint; it was 


filled with 1,000kg of high explosives and 
detonated at llpm on May 6, signalling the 
beginning of the final assault The huge 
crater remains. 

Quite whether all this justifies the new 
twice-weekly air service from Hanoi 
remains to be seen. Dien Bien Phu can 
hardly be considered an attractive place in 
spite of, and because of, the tourist infra- 
structure of karaoke bars and other essen- 
tials. 

The town is a building site and clouds of 
dust ming le with smoke from the brick 
kilns and the burning foils to reduce visi- 
bility to a few hundred metres. 

Apart from a few trees on Al, the hills 
are stripped of vegetation - not French 
napalm but centuries of shifting cultiva- 
tion. 

The barren hills and polluted atmo- 
sphere would have served those entombed 
french soldiers well - but not, one sus- 
pects, French tourists. 


The Nature of Things /Clive Cookson 

Is the quark hunt over? 


M omentous news 
last week from 
the Fermilab 
atom smasher 
outside Chicago: physicists 
have discovered the top quark, 
the last of 12 subatomic build- 
ing Mocks believed to make up 
the whole material universe. 

Or have they? The nature of 
the top quark - it disintegrates 
into a shower of other particles 
toss than one bilUon-bfilion-bfi- 
lionth of a second after its cre- 
ation - makes it impossible to 
“discover” in the traditional 
Eureka sense. Its existence has 
to be deduced by an extremely 

complicated mathematical 

analysis of millions of colli- 
sions in the Fermilab accelera- 
tin', looking for patterns that 
could only come from the cre- 
ation and immediate disinte- 
gration of a top quark 
The evidence, to be pub- 
lished as a 200-page scientific 
paper by a team of 440 physi- 
cists, shows that there is still 
some doubt Statistical analy- 
sis gives i-in-400 odds that the 
Fermilab patterns occurred by 
chance ami had nothing to do 
with the top quark. 

Although 399-in-400 may 
seem good enough odds to 
claim the top quark’s discov- 
ery, some scientists would like 
to see more convincing evi- 
dence fur such a fundamental 
finding - They are well aware 
that Carlo Rubbia and col- 
leagues at Cera, the European 
particle physics centre near 
Geneva, thought they had 
found the top quark 10 years 
ago - and then turned out to 
be victims of coincidence and 

Wishful thinking . 

If the quark hunt has been 
successfully concluded, it is 
one of the most overdue dis- 
coveries in science Physicists 


have been looking for the top 
quark sin«a creating its com- 
panion, the bottom quark, at 
Fermilab in 1977. It will fill the 
last gap in the 12 fundamental 
particles - six quarks and six 
leptons - which, according to 
the “standard model” theory, 
makft up all matter that has 
existed in the universe. 

To appreciate the signifi- 
cance of the quark, t hink back 
to the 1880s when Dmitri Men- 
deleev drew his periodic 
table of the 82 chemical ele- 
ments from hydrogen to ura- 
nium, by systematically study- 
ing their properties. 

The underlying reasons for 
the patterns revealed in the 


consist of three point-like parti- 
cles which Murray Gell-Mann, 
the great Californian physicist, 
named quarks in 1964, after the 
line “Three quarks for Muster 
Mark” in James Joyce’s Finne- 
gan’s Wake. 

The idea of quarks and lep- 
tons ra»n«* from studying pat- 
terns among the myriad of 
short-lived particles detected in 
cosmic radiation from space 
and created on earth in atom 
smashers. Their properties 
could be explained if they 
derived from combinations of 
quarks and/or leptons, just as 
the periodic table had been 
explained in terms of protons, 
neutrons and electrons. 


Quarks were named after a line in 
James Joyce’s Finnegan’s Wake 


periodic table remained a mys- 
tery until the discovery at the 
end of the 19th and the begin- 
ning of the 20th century of the 
particles that make up the 
atom: the electron, proton and 
neutron. Then scientists real- 
ised how the chemistry of each 
element - the way atoms join 
with other atoms to form mole- 
cules - depended on its atomic 
structure. 

The mid-2Qth century view of 
the atom, with negatively- 
charged electrons orbiting 
around a nucleus made up of 
positively-charged protons and 
uncharged neutrons, was cor- 
rect, so for as it went Scien- 
tists today still regard the elec- 
tron as a fundamental 
indiv isible particle - one of the 
sox leptons. But protons and 
neutrons have thelir own inter- 
nal structure. 

Each proton and neutron 


According to the standard 
model both the six quarks and 
the six leptons come in three 
sets of twins. Tim quarks bear 
the whimsical name* "up" and 
“down", “strange" and 
"charm", “top" and “bottom"; 
the leptons are “electron" and 
“electron neutrino", "muon” 
and “muon neutrino", “tau" 
and “tau neutrino”. But the 
theory sheds no light on why 
there should be 12 building 
blocks nor on their peculiar 
distribution of masses. 

Whereas individual leptons 
can exist free, quarks are 
always bound together with 
other quarks in either pairs or 
triplets. The proton, for exam- 
ple, can be seen as a tiny bag 
in which two up quarks and 
one down quark can wander 
freely but from which they 
cannot escape. 

AQ ordinary matter familiar 


to us an earth is made up from 
the up and down quarks and 
electrons. Neutrinos are 
ghostly particles, which per- 
vade the universe but are 
almost impossible to detect 
because they carry no electric 
charge or mass. The other, 
heavier quarks and leptons 
exist only for tiny fractions of 
a second under ordinary tem- 
peratures and pressures but 
they probably play an impor- 
tant role in much more 
eaffreme conditions - Inside a 
neutron star, for instance, or in 
the early universe soon after 
the Big Bang. 

Although the discovery of 
the top quark completes the 
list of particles that can come 
together to create ma tter , it is 
for from the end of the story. 
The universe also contains 
non-matter particles perform- 
ing other functions, such as 
transmitting forces. Best 
known is the photon which 
carries the electromagnetic 
force. Quarks are held together 
in the atomic nucleus by 
gluons which transmit the 
strong nuclear force. 

The most wanted particle of 
all after the top quark, anil be 
the Higgs boson, which is 
believed to play a role in giv- 
ing all the other particles their 
mass - In non-technical terms, 
their weight or substance. 
Cem wants to spend Eibn 
budding the world's most pow- 
erful atom smasher to find it 

If Anther experiments at Fer- 
milab this year confirm the 
almost-discovery of the top 
quark, supporters of the Stan- 
dard Model will be highly 
relieved that a theory of matter 
built up over three decades has 
not collapsed. But it leaves 
them with many more myster- 
ies to solve. 


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XU WEEKEND FT 


FINANCIAL TIMES WEEKEND MAY 7/MAY 8 19* 


TRAVEL 


W ant to know the 
secret of eternal 
Ufe? It is whisky, 
according to James 
Hogg, the Ettrick 
Shepherd.' "If a body could find oot 
the esac’ proper proportion and quan- 
tity feat ought to be drank every day, 
and keep to that, I verily trow that he 
might leeve forever, withoot dying at 
a', and that doctors and Jrirkyairds 
would go oot o’ fashion." 

Alter my first distillery visit on the 
newly-opened "Whisky Tra 3" I was 
little wiser about the process. The 
guide’s Aberdonian dialect was 
incomprehensible even to a lowland 
Scot That was 10 years ago. Today 
things are different Distilleries am the 
Whisky Trail have multilingual 
guides and audio-visual presentations 
in seven languages, iwdudfng Japa- 
nese. All you have to get your tongue 
round is a dram of Hi ghland hospital- 
ity: uisge beatha, Gaelic fin: the "water 
of life". 

There are about 200 distilleries in 
Scotland - six on the island of Islay 
alone - and the greatest concentra- 
tion is on Speyside, the Grampian 
region between Aberdeen and Inver- 
ness. The Whisky Trail is a route of 
about 70 miles, linking eight promi- 
nent ones. 

TomintouL the highest village in 
the Highlands, is at the southern end 
ctf the circuit Here the peaty bums 
which spring from the Cromdale and 
Ladder hills supply one of the three 
ingredients of malt whisky. The oth- 
ers are yeast and malted barley. 

That so many distilleries now have 
visitor centres is the result of the only 
real change in the production process 
in 150 years: few distilleries stiff matt 
their own barley on site. It makes 
better economics to bay it in from 
specialists, so the empty maitingB are 
put to use as whisky museums, shops 
and visitor centres. 

A distillery visit will acquaint you 
with the folklore and peculiar termi- 
nology of whisky. The matted barley 
is steeped in hot water in a mash tun 
and the liquid, known as “wort", is 
piped into washbacks where it is fer- 
mented into “wash”. This is distilled 
twice; of the second distillate, only 
the middle portion is kept: the 
"feints" and Toreshots" are dis- 
carded. 

Whisky off the still is colourless. 
Caramel is sometimes added to 
blended whisky, but (he honey colour 
of single malts comes from long matu- 
ration in oak casks. Sherry casks are 
preferred. During this time - eight, 
10, 12, 15 or more years - at least a 
quarter of the spirit is lost by evapo- 
ration: the "angel’s share”. 

There are things, however, the 
Scots rarely mention- that tartan and 
bagpipes originated outside Scotland, 
and that the father of the Scotch 
whisky industry was an Irishman. In 
1831 Aeneas Coffey invented a still 
which made continuous distilling pos- 



Coopera repairing the oak casks in which whisky matures for eight, 10, 12, 15 or more yeera 

Queen Victoria drank here 

Adrian Gardiner tours Scotland's distilleries and samples the * water of life 9 


sible, enabling whisky to be produced 
in bulk. 

Whisky is a big employ a- and a big 
export earner. At one end is an elabo- 
rate worldwide marketing machine. 
At the other: skilled trades which, but 
for whisky, would have died out Spe- 
cialist companies in Glasgow and the 
Lowlands make and repair casks (coo- 
pering) while coppersmiths maintain 
the stills. 

“Rome was built on seven hills. 
Dufftown an its seven stifls." From 
Dufftown, home to Glenfiddich, we 
travel clockwise to Tamnavulin (the 
“ mill cm the hfiT’) and to The Glen- 
Bwet, which in 1824 became the first 
licensed distillery in the Highlands. 

Following the River Avon north, we 
meet the River Spey and the distill- 
eries of Gtenfardas, T amdhu and Car- 
dhu. North again is the town of 
Rothes, home to Glen Grant, and a 
few mffes east is StrathisZa in Ttpith 


Stratinsla is tile heart of the famous 
Chivas RegaL 

Also worth visiting is T>aiiag Dhu 
near Forres. This distillery was a 
casualty of the 1970s recession and 
was taken over by Historic Scotland 
as a museum. 

Elsewhere in Scotland, both Dal- 
whinme and Blair Athofi are easily 
accessible from the A9 Perth-Inver 
ness road, and from Pitlochry it is two 
miles to Moulin, where a little white- 
washed huddle of cottages called 
Edradonr forms the smallest distillery 
in the country, producing a mere 600 
gallons a week. 

While travelling this north-east cor- 
ner of Caledonia you might take in 
the castle country of Aberdeenshire, 
and drive (he "Royal Route" from 
Braemar to Aberdeen. It follows the 
Dee. second only to the Spey as a 
notable salmon river. 

Braemar Is cot a town to linger in. 


unless you are a fen of tartan tat Its 
only merit is the cottage where Rob- 
ert Louis Stevenson stayed in 1881 
and wrote most of Treasure Island. 
There is a gravestone in the church- 
yard inscribed “John Silver 1 Aboyne 
»nd ftflilflter are more dignified: solid 
conservative towns. 

Short detours off the main A93 
bring you to same remarkable tar- 
reted castles. Craigtevar is perhaps 
the best known. Now in the care of 
the National Trust for Scotland, this 
fortified tower house, complete with 
plastarwork ceilings and secret pas- 
sage, is said to have inspired Walt 
Disney's drawings for the castle in 
Sleeping Beauty. 

Crathes, just outride Banchory, is 
another fine castle set in famous for- 
mal gar dens. But the main-crop tour- 
ists make for Balmoral, an architec- 
tural fake built by Prince Albert 
around 1850. Queen Victoria had a 


lifelong love affair with Deeride. Sign- 
posts featuring that well-known sil- 
houette now link her fevourlte places 
cm the Victorian Trail 
Victoria was known to be fond of a 
dram or two. You can follow her foot- 
steps today to the Royal Lochnagar 
Distillery. Victoria lived a full life and 
died aged 82. Perhaps the Ettrick 
Shepherd was right 

■ Maps of the Whisky, Castle and Vic- 
torian Trails an available firm the 
Tourist Information Centre, 45 Station 
Road, Banchory AB3 3XK, leL 
033422466. August is the distillers' hol- 
iday month. Visitor centres an open 
but you might not see die whole opera- 
tion in action. 

■ Adrian Gardiner is the author of 
Classic Towing Routes in Scotland 
(1931) published by Thomas-Lodutr. It 
includes a chapter an the Whisky 
TraiL 


Naked in 
Slovenia 


T he sweet, melancholy 
sounds of a folk song 
echo down the corri- 
dor, its words incom- 
prehensible except for the lari 
of each verse - “Maria". I am 
waiting alone, naked and 
apprehensive. The melody 
changes to the major mode, 
the pace livens, and then the 
singer comes in smiling, 
wheeling a trolley. 

She is pretty, plump and Up- 
stlcied. I understand nothing 
of what she says, but I give 
myself up completely. 

She places a great lump of 
steaming mud on the bed I am 
standing beside, and in her 
seductive language she tells 
me to lie on top of it 
She takes move annfttis of 
mud and pins me down so that 
Z am immobilised. It covers my 
abdomen, my shoulders and 
my arms with a great fiery 
weight. Then she wraps me 
first in a cotton sheet and 
after that she swaddles me in 
a thick blanket, all the while 
murmuring babytalk. 

She has set the timer for 20 
miimtes of this w qnhd te tor- 
ture, and every so often she 
breaks off hear song and ten- 
derly wipes the sweat from my 
brow. When the allotted time 
has elapsed she offers a far- 
ther five minutes - which I 
decline - and then a welcome 
shower. Then she brings 
strong, sweet coffee prepared 
in the Turkish manner, and a 
bottle of sllvovlra, the fiery 
spirit of the country. 

A visit to the Slovenian spa 
of Zreoe seemed a must after a 
week of gounnandistng in 
country farmhouses. First we 
had the water massage, when 
we were immersed in enor- 
mous computer-controlled 
baths heavily scented with 
sweetly aromatic oils. Then 
the medicinal bentonite mud 
treatment, and after that an 
agreeable swim in the natu- 
rally war m thermal waters of 
Zrece, this most recently dis- 
covered of all Slovenian spas. 
It was immensely relaxing. 

Spas in Slovenia were highly 
developed under the old com- 
munist regime, and they are 
remarkably sophisticated. 
Technology is advanced and 
the treatments extremely var- 


ied. Slovenian patients am 
referred by doctors for treat- 
ment after operations or inju- 
ries, or for many varied com- 
plaints ranging from 
rheumatism to disesses af the 
peripheral nervous system tod 
psychiatric stresses. But for 
fit, healthy people, too. the 
spas offer considerable bene- 
fits at prices which are incred- 
ibly cheap by western stan- 
dards. 

It is the same with Slove- 
nian farmhouse accommoda- 
tion. In this tiny but diver se 
and very beautiful country 
you can discover tastes and 
sensations that are all but for- 
gotten in file west Proces s ed, 
industrialised food is practi- 
cally unknown in Slovenia, 
and in the country you find 
meat which is produced cm the 
term, milk and cream straight 
from the cow, home-made sal 
amis and prostiuttl, cheeses, 
pickles and preserves, salads, 
vegetables and fruits from the 
garden, or from the woods 
(strawberries, raspberries and 
bilberries), and exceflent wine. 

If western tourists have 
been shunning these delights 
in the belief that Slovenia b 
war-torn, Italians - and bean 
- know better. Bears have 
been making their way north 
from Croatia In search of a 
haven, to the consternation of 
fanners, if not hunters. Many 
of the latter are Italians. But 
mainly, Italians go to Slovenia 
to sample the delights of a 
peasant cuisine similar to that 
of north-east Italy but which 
(unlike theirs) is preserved 
intact, at least for now. 

Wilma Paterson 

■ Information about fiamhouse 
holidays, as well as spas, am be 
had from Slooenia Pursuits.' 
Brummells, Cuilden Morden, 
Royston, Hertfordshire SG8 
OfP, tek 0763-852645. There are 
flights from Heathrow and 
Manchester to Ljubljana, with 
Adria Airways. Prices for farm- 
house holidays, including 
flights (B&B in high season) 
are appro, ornately £280 per per- 
son per week; full-board supple- 
ment £45. The Slovenian Tour 
ist Office is at Moghul House, 57 
Grasvenor Street, London WlX 
9DA tel- 071-495-4688. 


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FINANCIAL TIMES WEEKEND MAY 7/MAY 8 1994 


WEEKEND FT XIII 


FOOD AND DRINK - THE AMERICAN WAY 


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New York’s front room 


I n Manhattan, divarsity 
is everything. There is 
something in this inex- 
haustible city to meet 
every need, or indulge 
every fantasy, and its bars are 
no exception. 

If you hunger for reggae with 

your sushi, bikers' leather with 
your beer, or simply want to 
prolong the night with a strong 
drink and a sympathetic ear, 
Manhattan’s bars have it all. 

There is the saloon that >vw 
survived two world wars, two 
stock market crashes, prohihi- 
tion a nd dared trousers, twice. 
The jazz joint that Is so laid 
back it never bothers to take 
down the Christmas decora- 
tions. Or the bar where regu- 
lars gather around an upright 
piano to belt out Broadway 
show tunes late into the 
night 

No other city can boast such 
variety, and nowhere else are 
bars so tightly woven into the 
fabric of everyday life. They 
are ‘not just tbs preserve of the 
boisterous male; they are New 
York's front room. Here are a 
few of our favourites. 

□ ARTHUR'S TAVERN 
The old man with chalk-white 
hair and thick black spectacles 
has been an Arthur’s regular 
since the late 1940s. “No Cov- 
er/No Minimum," has little to 
do with his >wf»<Hng patron- 
age; it is the music, played in a 
way and in a place that 
reminds him of his youth. 
Arthur’s is a rare holdout from 
the Truman era - Greenwich 
Village unplugged. 


Although it is a j an joint, 
yon do not have to he a jazz 
buff to enjoy Arthur’s. The 
music never overwhelms, even 
if you sit at the rickety counter 
that surrounds the musicians' 
podium at the back of the bar. 
The place is so relaxed and 
unpretentious that it never 
even bothers to take down its 
Christmas decorations. 

There are no cover charges, 
cappuccino makers and no- 


shout A moment later. Albert 
is back slinging vodka-and- 
cranberries and greeting the 
regulars with a peck on the 
cheek. 

Welcome to Marie's Crisis, 
litis old bar - Thomas Paine, 
author of the Revolutionary 
War’s “Crisis" papers, died on 
the site in 1809 - Is roaring 
good fun whether or not you 
are gay. 

An appreciation for Sond- 


In a city of bars Patrick Harverson 
and Eric Reguly pick their favourites 


smoking signs. “Look at this 
place ” says one patron. “You'd 
think you were in the 1940s." 
□ RARESCnm 
The barmaid is a diva with 
thick, fai«> eyelashes, 
earrings and a provocative 
walk. His name is Albert 
Walsh and his large frame is 
too lumpy for taffeta and vel- 
vet He wears a white tank-top 
and white shorts. While the 
drag effect may be half- 
hearted, the singing Is not 
Albert puts down his tray of 
drinks. Pianist Sam Austin, in 
the middle of a medley from 
Show Boat, strikes up the 
crowd-pleasing “Your Love". 
Albert clasps his hands 
together, cocks his bead and 
bats bis eyelashes. His voice 
soars as if he were on Broad- 
way, centre stage. The patrons, 
mostly gays and lesbians, are 
enthralled. Brava diva! they 


helm and Rogers and Hammer- 
stein is more Important than 
your sexual preference. People 
come here to gather around 
the piano and sing, and almost 
everyone joins in. There is 
something wonderful about 
belting out show tunes with 
complete strangers and not 
feeling self conscious. 

□ PETE’S TAVERN 

Nestled south of Gramercy 
Park on a Quiet, tree-lined back 
street. Pete’s Tavern fits like a 
favourite wool cardigan. A 
“speakeasy" during the Prohi- 
bition era, Pete's has played 
host to numerous Gotham 
notables in its 130 years, 
iticinriing the tum-of-the-cen- 
tury writer and celebrated 
boozer 0 Henry, and the Tam- 
many Hall Democrats, who 
struck many political deals 
here. The atmosphere of those 
times still lingers in its dark, 


woody interior - a place for 
serious drinking and scheming. 

Pete’s is also a bar for all 
seasons. In winter it is warm 
and welcoming, in summer, 
tables snake around the comer 
of the block outside, and the 
dark rooms intide offer a bless- 
edly cool refuge from the 
humid heat It has an the fea- 
tures of an old New York tav- 
ern - a tin ceiling, tiled floors, 
and cosy wooden booths - and 
serves food in a couple of con- 
verted carriage-house rooms at 
the back. 

It is the bar in the front 
room, however, which lures 
d rinker s back. Often cramped, 
usually cheerfully noisy, and 
staffed by wise-cracking bar- 
tenders, Pete's is authentic, 
timeless New York. 

□ CAFE LUXEMBOURG 

It is midnig ht and Cafe Luxem- 
bourg is changing from Art 
Deco bistro to Art Deco bar. 
The kitchen cools down. Three 
p r e tty waitresses in tight black 
dresses and wine-dark lipstick 
share a strawberry sorbet at 
the end of the bar. ’Hie slinky 
redhead behind the zinc 
counter pours Veuve Clicquot 
into a crystal flute and greets a 
patron with a kiss while Can’t 
Help Lotting That Man Of Mine 
plays softly in the background. 

The bar at Cafe Luxembourg, 
one of th e more urbane and 
vibrant restaurants near the 
Lincoln Center, is no after- 
thought even though it is fairly 
small. Its style is Tenth Arron- 
dissement, pre-war, with its 
Deco light fixtures, mirrors, 





Where everybody knows your name: 1 


; Tavern an old 


ITdRfaclMC- 

1 and now a bar for all seasons 



Hatem SWdnvW 


black and cream tiles and 
chrome cash register. Vodka 
martinis, Chardonnay and 
champagne are the preferred 
drinks here. The bartenders 
are Invariably exotic-looking 
women, some of whom can 
legitimately say they are 
between roles. 

Q CHIMNEY'S 

i falaiid Stanford Chumley, a 
stage-coach driver turned jour- 
nalist, would not approve of 
the 1990s’ rendition of the bar 
he founded in 1927. Rac k then, 
the West Village speakeasy 
was the sequestered court of 


New York’s young Bohemians. 
It was full erf trendy writers, 
actors and socialists. Die-hard 
“Wobblies" - members of the 
rebellious, left-leaning union 
that had blossomed before the 
Great War as the Industrial 
Workers of the World - made 
it their reftige. 

Today, Chumley’s is a 
cacophonous fusion of restau- 
rant and bar, the patrons of 
which look like they spent 
their formative years reading 
MBA textbooks, not Marx. 
Nonetheless, it is well worth a 
visit 


The food is decent the beer 
selection is superb and. 
clientele aside, it retains the 
dark, smoky aroma of its 
Prohibition past. Finding 
Chumley’s is half the fun. It is 
located behind an unmarked 
door on enchanting Bedford 
Street The original structure 
was built before the Revolu- 
tionary War, in 1732. 

During any one week, as 
many as 60 brands - all of 
them from American micro- 
breweries - are on tap. A 
warning: ever faithful to its 
past, Chumley’s does not 


accept credit cards. 

■ Arthur’s: SB Bedford St. west 
of 7th Aw. Telephone: 212 675 
4449. 

■ Marie's Crisis. 59 Grove St 
west of 7th Am. Tel: 212 243 
9323. 

■ Pete ‘s, 6fi Irving Ptace at 
JSth Street. TeL 212 473 7676. 
Cafe Luxembourg 200 West 70th 
Street, west of Broadway. Tel: 
212 873 7411. 

■ Adapted from the book 
“Night In The City - Manhat- 
tan ’s 100 Best Bars . ” which Pat- 
rick Harverson and Eric Reguly 
are writing. 


T here is a New York 

familiar to million* 

who have never been 
there: It is the screen 
city of Kojak, Cagney and 
Lacey, NYPD Blue and The 
French Connection. Law-abid- 
ing television watchers around 
the world know exactly what 
the inside of a New York police 
station looks like. We know 
these are in Manhattan, even if 
they are only anonymous film 
sets, because when the detec- 
tives are too busy to lunch, 
their colleagues bring than a 
pastrami sandwich. For me the 
unsolved mystery at the end of 
every episode was: what is pas- 
trami? 

My dictionary defines pas- 
trami as “highly seasoned 
smoked meat". The word 
comes from Romanian via Yid- 
dish, imported to New York by 
Jewish immigrants. 

I went to the Carnegie Dell 
on Broadway, itself a set in 
Woody Allen’s film Broadway 
Danny Rose. I ordered a pas- 
trami sandwich. The waiter 
brought me an entire cow, 
sliced, with two slices erf rye 
bread. There was more meat 
on my plate than Tevye (of 
Fiddler on the Roof feme) 
would have seen in a whole 
year. The sandwich is not so 
much a reminder of the old 


I’ll take pastrami, in Manhattan 


Peter Berlin goes in search of a sandwich and finds a symbol of an entire culture 


country as a monument to the 
wealth of the new home. But 
then at $9.45 (£8 j 60> it ought to 
be. 

The meat was moist and 
tatty - my waiter had told me 
not to order “lean” because it 
would be too dry. The surprise 
was that it resembles boiled 
rather than smoked meat; pas- 
trami is smoked and bolted or 
steamed. It was not particu- 
larly spicy. I found it dull and, 
defeated by the bulk, declined 
the doggy bag. 

StiH I may be wrong. The 
sandwich came blessed by the 
thousands of celebrities whose 
signed photos smile down from 
the walls at the low rows of 
bare long tables, proud to have 
eaten at the Carnegie. 

The Asian tourist at my 
table was evidently satisfied, 
he told his girlfriend that this 
was the real New York experi- 
ence. Tomorrow they would 
come back for a earned beef 
sandwich. 

Carnegie’s boasts that it 
serves the “best pastrami in 


the world". So hoping this was 
an exaggeration. 1 headed 
downtown, to the lower east 
side and the 2nd Avenue Deli. 

The menu at the 2nd Avenue 
Diner offered the information 
that in 1910. 600,000 Jews lived 
on the lower east side. The 
menu also Offered beef lO inpin 
and turkey kabobs (sic) as well 
as the more traditional “Rou- 
manian" tenderloin steak. 
Nova Scotia lox and potato 
kugeL 

I could not be tempted. I 
ordered a pastrami sandwich. 
The decor, like the fere on the 
menu, was heavy and serious. 
The sandwich was much the 
same: an over-generous serving 
of good but boring meat 

By the time I penetrated the 
seedier reaches of the lower 
east tide my heart was heavy, 
and not just with cholesterol 
At Kate’s, on a stretch of Hous- 
ton that used to be ghetto but 
has gone downhill I received a 
pleasant surprise. 

Katz's has remained where ft 
was and as it was (except for a 


modem cash register) while 
the Jews of the lower east side 
have moved up and out. Down 
one wall is a long counter 
behind which white-coated 
middle-aged men prepare the 
food. The motto, unchanged in 
50 years, is: “Send a salami to 
your boy in the army.” 

I ordered a salami sandwich. 
The man in the white coat, 
Robert Krinsky, was dis- 
traught when he heard 1 could 
not face any more pastrami He 
took his knife to his side of 
pastrami a slim hunk of meal 
which could not possibly have 
yielded slices of the width that 
I had so far tried. It was drier 
and tastier than elsewhere. 

I asked Krinsky where pas- 
trami came from. “From New 
York,” he replied, indignantly. 
“Everything has to do with the 
fresh drinking water.” (Man- 
hattan takes its water from 
reservoirs in the mountains of 
upstate New York.) The 
Indians, says Krinsky, were 
the first to use the local water 
to preserve meat 


Salted, pickled or smoked 
meat and fish and vegetables 
were always a staple of the 
Jewish ghettos in Europe, pre- 
served against the bad times. 

“Your water in England 
smells, if you go to Queens (a 
New York borough) the water 
there smells." Even the bread, 
said Krinsky, laying my meat 


between two slices of plain, 
white rye, was better because 
of the water. “You won’t have 
tasted better bread." 

Katz’s, said Krinsky, a sales- 
man as much as a sandwich 
maker, cooks its pastrami 
even though that makes the 
meat shrink and cooked pas- 
trami must be sliced by hand. 


Others, he confided mention- 
ing no names, steam theirs. 

Krinsky is nostalgic for a 
lost past Katz's represents a 
better time and place. “It is not 
what it was,” he says gesturing 
to the street outside, “nothing 
is. It used to be better. For me 
the 1950s were best" Katz’s - 
large, bare, full of atmosphere 


- is the place for tourists to 
find a good, manageable pas- 
trami sandwich. It may put 
some visitors in mind of Kojak; 
for Jewish New Yorkers, like 
Krinsky, it conjures up memo- 
ries, not of the old country, but 
of old New York, a city of 
immig rant c ommuni ties where 
a waiter could look out of the 
door and see familiar faces. 

■ Carnegie Deli. 854 Seventh 
Ave between 54th & 55th. Tel: 
212 7572245 

■ Second Ave Deli 156 Second 
Ave at 10th. 2126770606 

■ Katz's Deli 205 E Houston at 
Ludlow. 212 254 2246 


A 


n enjoyable part of 
my job is answering 
readers’ queries 
.about where to eat 
But recently I was asked a 
more general question by a res- 
taurateur who will be opening 
a large restaurant on London's 
South Bank this autumn. He 
was p lanning to send his chef 
on a restaurant research pro- 
gramme and wanted to know 
where I would suggest. 

Five years ago the answer 
would have been a tour of 
France. Two or three years ago 
I would have said northern 
Italy. Today my immediate 
response was California - with 
a stopover in New York. 

I suggested this Itinerary not 
just for the pleasure of eating 
Jeremiah Tower’s food at 
Stars. San Frandsco, or find- 


California 

dreaming 


mg what Alice Waters was up 
to at Chez Panisse in Berkeley, 
or of negotiating the culinary 
maelstrom generated by Man- 
hattan’s 13,000 eating {daces. 

The main reason was to see 
what makes food in the US so 
at tr a c ti v e , exciting and afford- 
able. What American chefs and 
restaurateurs have done, more 
successfully than any other 
country’s, over the past 
decade, is look at the entire 
eating-out experience - from 





Shippers of fine 
Burgundy and 
Vin de Pays de l'Ardeche 


For stockists, 
please telephone 
071-409 7276 





CLARETS AND V INTAG E PORTS 


WANTED 

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the consumers’ view as well as 
their own. 

In doing so they have started 
with several advantages. First 
America is the world’s largest 
most efficient food producer - 
but for ambitious chefs bigger 
and cheaper does not necessar- 
ily mean better. 

Led by Alice Waters, Ameri- 
can chefs have dictated what 
they want the best local pro- 
duce grown for flavour and an 
emphasis on regional dishpg 
prepared with the best local 
ingredients. 

Second, restaurateurs owe a 
great deal to the American 
wine industry. The American 
Institute of Food and Wine, 
based in Santa Barbara and the 
br ainchild of Juba Child and 
wine makers Dick Graff and 
Robert Mondari, has educated 
thousands of customers and 
trained many chefe. 

The Beringer winery in Napa 
runs a course which profes- 
sional chefs are keen to join. In 
Mendocino, the Fetzar winery 
uses talented chef John Ash to 
cook its own organically-grown 
produce to match its organical- 
ly-produced wines. Such a sym- 
biosis cannot happen in the 
UK. 

Perhaps the most important 
factor is the enthusiasm of the 
American diner. It was 33 
years ago that Julia Child 
became America’s first televi- 
sion cook. She has converted 
millions to the joys of good 
food. In the US today not only 
do food and cookery pro- 
grammes got considerable 
prominence mi PBS, the educa- 
tional channe l but Channel 54 
has become the television food 
network. Millions of 
Americans buy Gourmet and 
Ban Appetit magazines every 
month - in contrast to the UK 


which is still without a really 
successful independent food, 
wine and leisure magazine. 

American restaurateurs have 
more than matched their cus- 
tomers’ enthusiasm for better 
food and service and have 
overcome major obstacles with 
a typically American “can-do” 

philosophy. 

When the neo- Prohibitionist 
lobby threatened to dent sales 
of alcohol American restaura- 
teurs were the first to offer a 
comprehensive range of wines 
by the glass. Drink less but 
better has been a successful 
marketing campaign. 

When the going got rough, 
tough American restaurateurs 
got going. With the recession 
causing the prospect of thou- 
sands of empty tables in the 
spring and summer of 1992, 
some 100 New York restaura- 
teurs devised and promoted 
the $19.92 lunch which filled 
tables and rekindl ed demand. 

Two final snippets whetted 
my appetite for a culinary trip 
around the US. The first was a 
late-night discussion with 
Jean-Geo rges Vongerichtem 
one of New York’s most excit- 
ing chefs. In addition to his 
two restaurants. Jo-Jo’s and 
Vong*s, Vongerichten plans to 
open a third in the autumn, 
where you will pick up a trol- 
ley at the door, buy fish, whole 
and filleted, which you can 
take home and cook or it will 
be cooked for you. Finally, 
there will be a restaurant 


proper. 

This weekend menus arrived 
for dinners to be held in Chi- 
cago which exemplify the style 
of cooking which makes eating 
out in America so exciting. The 
celebrated chef Charlie Trotter 
will be cooking yellowtafl tuna, 
marinated with chilli and siz- 
zling sesame oil, diver-har- 
vested scallops with charred 
bell pepper tapenade, organi- 
cally-raised venison with sweet 
potato tortellinl and, as a des- 
sert, a poached plum with star 
anise ice cream. But an airline 
ticket was not i n c l u ded. 


Nicholas Lander 


Dine in these restaurants 

and be 25 % better off 


BUMBLES 


REST A cU RANT 

a 



Victoria, 
Teh 071- 


Did you know. 7 


WVJ K- On A re-. I 


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ScnUDUi SMtae Bub «8«t«r 
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Lunch or dine in our beautiful gardens in 
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Children welcome 
Reservations ( 042 482) 212 
Jack filler's. Nr. BrtgMfing, East Sussex TN32 5HD 



Offering only the freshest 
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Knightsbridge Place 


Far nrorfg] « f latiaa cmishte 


For aaabomatbM t r talng tty 
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om Friday amd Saturday 


SET MENU 

In lifiWamt 

UZSO for 3 ama Moo-Fit 
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In ih* brasserie: 

£4 JM) for a light lunch 


1 16 KN1CHTSBRIOGE LONDON SW1X7PJ 
TELEPHONE 071 -225 3212/3469 


12/14 Cientworth 
Street London NW1 

(1 minute from Baker Sr (j)- ) 

Teb 071-935 0212 


SCOFFERS 

Excellent American Cuisine 


Welcomes 

the Transmedia Card 


31-32 BATTERSEA RISE • LONDON • SW11 
071-978 5542 



Established in 1916. Bentley’s has for 
generations been one of London's culinary 
landmarks, specialising in the finest 
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carefully selected wines and champagnes. 

Bentley’s restaurants, located in the City 
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Bentley’s Piccadilly 
11-15 Swallow Street 
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Bentley's in the City 
1 1 Queen Victoria Street 
London EC4N 4UJ 
(Bttomdx Ligil r, Gnfjl tmtilimO 


RESERVATIONS 
Tel: 071-734 4756 


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Tel: 071-489 80t»7 



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Szechuan Cuisine 


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70-71 Wilton Rood, London SWl 
Tel/Fax: 071-828 8931 


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Live music, 60s and 70s Style on Thursday 
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SET MENU 

Upstairs in the restaurant; 
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11-12 Stewart! Street, London, El. Tel: 071 -375 3094 



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8 Egertor? Garden Mews. 
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Tofc 071-584 7007 


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XTV WEEKEND FT 


FINANCIAL TIMES WEEKEND MAY 7/MAY8J994 


PROPERTY 


Sotogrande - an 
estate with the 


Californian touch 


Gerald Cadogan visits southern Spain to see where 
smart development was pioneered on the Costa del Sol 


O n landing at Gibraltar 
airport, it is easiest to 
walk through, the 
frontier into Spain. If 
you are in a car, you 
could be delayed. A poster warning 
of "very dangerous” terrorists 
greets you and dogs wait to catch a 
whiff of drugs. Go a little further 
and you find the Guardia Civil 
parked by the sea, binoculars 
searching for speedboat-borne 
smugglers from Morocco. 

Just over the border is La linea 
where, for 200 years, British service- 
men rested from the Rock's con- 
fined life. The closing of the frontier 
for many years up to 1982 was hard 
for La Linea and the country 
around. Moroccans took the jobs 
Spaniards bad held and the easy 
way to the Costa del Sol from 
Britain, then Spain’s biggest mar- 
ket, was shut. 

This helped Malaga airport but 
reaching Marbella by the old coast 
road was a nasty and dangerous 
drive. Today, though, the motorway 
and bypasses make it easy from 
either airport Gibraltar has fewer 
flights and smaller planes but is 
probably preferable for places west 
of Marbella. And its duty-free prices 
are phenomenal. 

There is still unspoilt country 
dose to the border and up in the 
hills (where people suffered badly in 
and after the 193639 civil war for 
supporting the republicans). Cork 
natet abound. The Rock rules the 
sea view, although often it is sur- 
rounded by fog. Beyond, and not far 
away, are Africa’s Atlas mountains. 

The 1,6X8 hectare (4,000 acre) 
Sotogrande estate, between Mar- 
bella and Gibraltar, pioneered 
smart development on the Costa del 
Sol and is now 32 years old. Its first 
golf course was completed in 1965 
and the second in 1975. Wide roads 
were built and utilities installed 
from the start 

Today, it is a bit like California, a 
mix of Mediterranean scrub and 
lush trees, flowers and lawns where 





[jU- > 


Easy bring... on* at the horns at Sotogrande, where i 


, for 20 years' more safes 





Pta4Qm - the cheapest is Pta27.2m 
and fiie dearest Pta605m. They are 
vfrpi for the three golf courses and 
two polo grounds: the sport still 
attracts the British army from Gib- 
raltar. 

Golf has been a boom spot in 
Spain in the past two decades. Rob- 
ert Trent Jones laid out the Soto- 
grande courses, of which the best Is 
Valderrama (a handsome, private 
club which hopes to host the Ryder 
Cup in 1997). The nine-hole La Can- 
ada course is the only municipal 
layout in Spain and there are plans 
to build annular 27 holes, making 72 
in alL 


Sot ogia n d e’a new intend marina, where a mooring coats Pta4£m 


The Marina Puente Romm, where 234 apartments are bust around gardens 


the ground has beat reclaimed and 
watered. Indeed, water is not a 
problem for Sotogrande, which 
extracts what it needs from the 
Gaudiaro river that flows through 
the estate (and brings migratory 
birds). 

The owner of the estate is the 
Sotogrande Public Company, which 
has at least 20 years’ more sales in 
prospect before the estate is ML 
Even than , it wifi not be cluttered. 
The w»iw s harwhoidar is Carlo de 
Benedetti’s Cofir group. 


T.ikn the rest of the Costa del Sol, 
boom and gloom has been the story 
of Sotogrande. The boom years were 
1971-74 and 198337 but the recent 
decline started late in 1989. a year 
when 43 per cent of all foreign 
investment in Spain wait on prop- 
erty in Malaga province; by last 
year, prices were 40-50 per cent 
down an 198960. 

The foil of the pound in Septem- 
ber 1992 made matters worse, while 
lower interest rates hit British pen- 
sioners. The subsequent rinrHna of 


the peseta (now around Pta2Q0 to 
£2) has been same recompense, bat 
many homes are for re-sale along 
the coast 

fi looks now, however, as if prices 
have bottomed; many more people 
are inquiring and some are buying. 
In Sotogrande, inquire at the sales 
office; elsewhere, Hamptons/Randal- 
W ffllamg and BJ). Wood offer a 
good selection. Sotogrande slashed 
prices last year on 43 unsold apart- 
ments and only seven are now left 
(at realistic and attractive prices 


between Ptalfim and Pta33.6m). 

That hag released rash for the 
first phases of a new inland marina 
where house prices (Ptalfim to 
Pta29m) include the entrance fee for 
the two beach clubs - which are 
still old-fashioned enough to sepa- 
rate childr en and adults. A mooring 
costs Pta4£m. 

To maintain standards, the com- 
pany has decided to stop selling 
other plots to outside developers 
a nd , ingfrwd is building the houses 
itself. Most cost from Pta30m to 


S otogrande is not a British 
enclave - about half the 
sales are to Spaniards, 
mostly from Madrid and the 
Basque country. But the British are 
nibbling again and the Germans 
now constitute about 15 per cent of 
the market Among the rest are peo- 
ple from Hong Kong. South Africa, 
northern Italy and Morocco. An 
international school follows the 
British and Spanish systems. 

Marina Puente Romano is an 
apartment-only development east of 
Sotogrande and just west of Mar- 
bella, next to the Puente Romano 
luxury hotel. La Concha mountain 
dominates the view on the land 
ride, and a neighbouring mosque, 
built by the Saudi royal family , is a 
surprise reminder of the Moors who 
occupied southern Spain. The 
Roman bridge (puente nrmano) sur- 
vives in the hotel garden. 


The 234 apartments are built 
around three gardens, e ach with its 
own swimming pool. Bat of the 
gardens Is file Japanese - the oth- 
ers are Persian and Andalucian. 
The entrance fee for the top-class 
on-site t ennis dub is included in the 
price of the apartments. Although 
serious marketing began only last 
year, 35 per cent are sold already, 
with a mix of buyers similar to 
Sotogrande. 

Prices range from Pta33m to 
Ptai20m (for penthouses which 
have their own private pools on the 
balcony). Cheaper units are farther 
from the sea but the Persian Gar- 
den is only 20m back: it had' 
received planning permission, and 
work had begun, before a law was 
pap aya that afl new buildings must 
be 100m back. Basement parking 
and storerooms are extra while the 
monthly community charge 
indudes water. 

Close by is Marbella, now a much 
cleaner town thanks to its contro- 
versial mayor, Jesus Gil y Gfl, who 
has tackled its drugs and crime 
image with gusto. The old part, par- 
ticularly, is well worth an hour or 
two’s meandering. 


■ Further information in Spain 
(dialling code from the UK 0103# 
Hamptons and B. Randal-WUhams, 
Marbella . 52-801 909; Puente 
Romano, 52-825 882; Sotogrande, 
56-790 300; B.D. Wood, Marbella. 
52-883 710. 

In London: Knight Frank A Rut- 
ley, 071-629 8171. 


COUNTRY PROPERTY 


Oae Of The Hoot Residential S8tF*TBxs 
In South Lincolnshire 



BROWN £r CO 


PRESTIGE SECOND HOME WOODLAND DEVELOPMENT 


THE WYKEHAM ABBEY ESTATE 
SPALDING, LINCOLNSHIRE 


Top quality Norwegian Log Houses in magnificent coonuy park setting overlooking Ibe 18 hok par 
72 international standard Golf Coarse opened in August 1992, WITH IMMEDIATE ACCESS TO 
THIS MEMBERS ONLY EQUITY PARTICIPATION GOLF CLUB AVAILABLE. 




Approx. 540 acres of highly 
productive Grade 1 lxod 


TRADITIONAL SCANDINAVIAN DKSiGN to highest 
specification. with folly fined kitchen nod bathroom. 
JJXVURY HOTEL FACILITIES opened December 
1992. QUALITY HEAlTH, HTNK5S & LEISURE 
CLUB. Tar all the Imuily to open saanner 1994. 


You wot 
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Grade 2 listed Farmhouse believed U> date beck to 
the 17Hi Century; set m 12 acres of Paddand with 
the remains of Wykebam Abbey 


Managers House, Cottage and substantial range of 
modon Farm Buildings. 


NORTH YORKSHIRE, Swakdale 
ONE OF THE FINEST GROUSE MOORS IN 
THE COUNTRY IN A SPECTACULAR PART 
OF THE YORKSHIRE PENNINES. 

baring cwcrkxidng Swafcdak; 14 bedrooms, 

4 rtoepoun mum, Office, Staff Oat, Garaging & Tennis Court. 
Grouse mow with 10 year average of 24 brax. 13,500 acres of 
heather. 3,017 acres let farmland. 22572 acres vacant land. 

8 ixKtogcs. 120 acres woodland. Good pheasant shoot 
Substantial estate income. Sporting rights over a further 5£70 acres. 
For Sole ns a whole or fai Iocs 
ABOUT 26,485 ACRES 

SavOb, London (071) 499 8644 Contact: Bertie Ross 
Davis & Honoring (05242) 71711 


For Solo by Private Treaty 
as a Whale or in Lots. 


FROM 


£49875 


FOUNDER OWNER SCHEME:- 
“ 100*. 50*. and 25 % ownership 
options 

• ONE Lcisue Club Membership 
ftee of Charge (Yah* £750) 

• FREE MAINTENANCE - Year 1 

• CHOICE of 2S prime pto 


(Jggji) 


Conted : Tom White or Robert Fairer, 18/19 Sheep Market, Spald ing, Lincolnshire, PE11 1BG 

Tel : (0775) 722321 


BUY YOUR ‘IDYLLIC WOODLAND HOME* and enjoy GOLF. LEISURE and PEACEFUL WOLDS 
COUNTRYSIDE close to INLAND aad COASTAL RESORTS. TfcL (0507) 610161 - Fw. 10507) 610160 crumf 
fcr brochure to KENWICK WOODS LTD. Ken wick Ftok Golf Club Ptc; Kenwicfc Fade. Louth. Linea LN1I 8NY. 



SUFFOLK, Brandoston 

GRADE a* ELIZABETHAN FORMER PRIORY 
WITH RURAL SURROUNDING. SEPARATE 
LODGE AND CONVERTED BARN. 

•Mam House 3 rotxpc ion rooms, 6 b e dro om s, 3 bathrooms, 
shower room. Tube Bom: Gnat Hall (60 x ISO, gallery, 

2 bedrooms, 2 bathrooms. 3 bcdnwmed Lodge: Extensive 
outbuildings- Formal gardens, woodlands, meadows and pends. 
ABOUT 23 ACRES 

Region of £650,000 (lodge could bo excluded) 

Barilla, Ipswich (0473) 226191 Contact: Mark Oliver 



PAUL JACKSON 


AUCTIONEERS AND ESTATE AGENTS 


NEW FOREST - 




EATON SQUARE, BELGRAVIA 


Aa Imp ort ant writ nuuntaiocJ snail eormt iy rotate e aco uip aa ah g a spacious 
Oran try Horae, on en tran ce lodge and exxaajve O Trttmi fc gc y, act in 29 acres of 
garden*. parkland and paddocks. Ibe property enjoy* £ar reaching somb- westerly 
vtewa over the landscaped gantczB to the Boldra Volley. 

Five nw r pti ona roams. Odatedha room and fan domest i c offleeg. 
Seven bedrooms, four ba t hro om s and adf-cornajoed W=» 

Two bedroooed Entrance Lodge, ample garaging, tennis coon, aqoasb court, 
atndio. Oorhufldinps and hams, lau dac ap e d ywriens. fwifcfanrf ■nadfawT ml 
Fbc Sate Freehold 
Contact Pan! Jackson 

14 Qnay HSL Lymingroo, Hampshire (0590) 674411 



A grand first floor balcony 
□at laterally arranged 
across two period buildings 
and now requiring 
refurbishment. 


5 Bedrooms, 3 Bathrooms, 
Drawing Room and Dining' 
Room both wife a 
delightful aspect down the 
length of the Square 
Gardens, Kitchen, Pantry. 
Passenger Lift - 
Resident Caretaker. 

£13 million 


>is 


BEDFORD 


INTERNATIONAL PROPERTY CONSULTANTS 


mmjM 


STYLISH LIVING 


TO LET 
WEST CORNWALL 

S a h s mr ial Grade 0 Lasted Cranny House 
me . «.«. Cal. taage of offices and Babfc 
btoct. 14 acres pi rid and 2 cartages 
«vaH*te by sep. acpKiatko. 
hfay saft cg ro mc rda l aac. Long let 
For brief details Write u> Ben B240G, 
Financial Times. Oao Sombwadt Bridget 
London SE19UL 


X H -N.-TRY ritOf>i:RTi'AC;i-:NT? 


Count v tlomisvardi m 


English Courtyard cottages and apartments are designed for comfortable 
living, even in small details mdi os the siting of sockets and the height of 
the worktops. 

9®r development at Wtatnbmme Earls near Salisbury, may look as If 
it's just stepped out of the 17th Cranny, but it incorporates every thing 
LI45J1QQ* CarDC< * Courtyard its many accolades. Prices are from 

To find out more about these and other retirement properties throughout 
En gl a n d, ring oa now. 


UPPER SHOCKERWICK - Bath 4 mOos. 
Superb stone cortege within peaceful 
fionriet wftfi gtorieva eeufteriy aspect 
Btaoae By Duals v a tiay. ritfog room, dtewg 
room. breakfast kitchen, utility. 
dBsMhmr, 8 bedteoms, bathroom, & 
central taaitefl. Dmrnatt Naate 0249 
853361 


An independent, 
cost effective and very 
successful bouse finding and 
buying service. 

Derca A CwinraS - 0872 2Z3349 
| Han* &DWM- 9962 7157® 

Iht CatfweUs - 0242 26Z260 
Bachs, Berta S South Oxm 
.9494766140 

Suny&W.Srasm- 04205 11604 
WBtshire& Somerset -0733 731881 
Bed* Brats & Canbs - 0ZM 354S92 
Leadsn- 871 738 8938 


SOUTH NORFC 

ILK - 41 ACRES 

k,-C-r ~ - 

vK" -= - ii 4i ^ 

Close Suffolk border & All. 

QUEEN ANNE 
Country House 

4 Reception Rooms, 

7 Bedrooms, 3 Bathrooms, 
Cottage, Garden, Woodland, 
Pond and Parkland. 

In need of re-farbishmenL 

OFFERS IN THE REGION 
OF £385,000 



« 1 . i : si : 


RENTALS 


ci At k noksr v.!:m ii 


i t:r\»a assoc i \ i fs 

I.1M1TLL) 


P*srna Parana tvftuttftAOB 

Larazy Flats and bosses with garages 
available ia Belgravia. Mayfair. 
Kerafagmi and Chriraa mthrr h mMw^ / 
eahonUed b all priee raegos. 

Properties also available for short tens 
renaL 

Wc deal promptly and efficiently with 


T EL: 071 539 7322 FAX: 071 5fC 86C2 


The fagM C aei ty siii Assetiathn 
8 UsBand Street, LendoaW84LT 
FREEFONE 0800 228 958 


SURREY - CQBHMVOXSHOTT Undw 
S2DOfl0aA5 eertooRi, 2 btetoom madan 
detached house backing onto emodtend. 
Cont act aj RCHOQS ESTATE AGENTS 
0089800999 


KUEOCH RMHOCH PB1T1SHRE. S twb. 
Vttatan tOML 2 pure ims,2baJH 1 Mrian. 
Otets oar C79JD00 Tefe 031 GS7 100a 


"COUNTRY" MAGAZINE 
Wifi Over 60 bileresting East Anglian Properties 
£70,000 - £890,000 

JartPUhfisfceti -call for yoor free copy 


SOHO Selection of 9 bad. 2 befo. Ua wtti 
prNma bolarin & unmnl oounsmd hi 
« wkpm pmnouH devofapman OWO p.vr. 
BARNARD MARCUS ARIA Tel U71 836 
2738 F« 071 438 2849 


A Subsidiary of Lloyds Bank nic 
Corporate Tenants available none 
for your property in 

SW1, SW3, SW7 

Rentals £200- £2^00 pw+ 
Td071 730 8682 Fax 071 7303110 


HAMILTON li KOOKS 


Bury St Edmunds (0284) 769999 


BARBICAN » CRY Stfedtan at t&a U let 
hem £BQ0 pent l*i 6 mantis. Frank Hants 
* Co on 000 7am 


Aldkrscats Coubt 
B a rth s l a m e w OnsnBCl 
Medtam size stndioi end i BcdfkR 
to teat. From £1 10 per week 
Hutfunfonnahcd. 

Sales a Letting Ajenia 



071 600 1551 






















FINANCIAL TIMES WEEKEND MAY 7/MAY 8 1994 


WEEKEND FT XV 


MOTORING 



Off-roacfing Is the last thing 
typical buyers of the latest 
Range Rover Vogue (pictured 
left) wfth a Z5-Btre, rflreet 
Injection diesel engine and 
automatic transmission (from 
£29,965) win have In mind, 
even though It is perfectly 
at home in thick mud. The 
lofty driving position, ease 
of control, tons of headroom, 
airbags and impression of 
strength are appealing. 

Acceleration Is leisurely 
and the engine sounds 
growty while speed Is picking 
up. Noise vanishes in fourth 
gear. The <fle sel moderates 
the Range Rover's traditional 
thirst so wed that over 

30mpg (9.4 1/1 00km) te 
achievable compared with 
the equvslent 4L2-Htre petrol 
V8’s under 20mpg (14 1/ 
100km). 


Motoring/ Stuart Marshall 


Take your 4x4 off-road 


INTERNATIONAL PROPERTY 


CREATE A. DREAM 
IN RURAL ITALY 

A Ixairi&J cufk* duii rf JiWtfct FAItMHOUSES for rauvadui, ki iii a 
PRIVATE ESTATE between COIVTONA are! PEKUCUA. 

Tin: dwiivri ui'CASTELLO 1>T fcRSCHIO utfcr a fiiH urwv to die 
pvtuhaser. iiaJiuKi^nil Ikipl Lfocumci nation. pfcn u ting pen msskNi, 
m«uvjuo,i wuli C1UARAMTEEI? FfXFJJ PRJCBj, nncr»r 
ikvoq>>ii|{ aiulbmhapkifi 
I'riiMKiiTjl j 08Q/)0Q pho iuuvwuii 

Par fimJicr iidanmcvn. _**&?*. pfonccreiuu J'hiUips. 

Tel 071 386 5592 fw 071 386 5592 

CASTELLO Dl RESCHTO M®” EXCLUSIVE PROPERTIES 


U rban pedestrians 
are not the only 
people who need 
protecting from the 
motor vehicles they have to 
share their space with. What 
about walkers - and for that 
matter, riders - who say their 
enjoyment of the countryside 
is being threatened by offroad 
cars and motor cycles? 

It Is a vexed question. The 
market in on-off road 
four-wheel drives continues to 
grow. Fortunately, the great 
majority of the 14,670 Land 
Rover Discoveries, Range 
Rovers, Shoguns, Land Cruis- 
ers, Jeeps and the rest sold in 
Britain last year will rarely if 
ever leave the tarmac. They 
were bought to enhance a life 
style, not to cross trackless ter- 
rain - incidentally, wwnttfMng 
It Is very difficult to do le gally 
in a crowded little island. 

But enough owners of 
Britain’s estimated 150,000-plus 
on-off readers exercise their 
right to use Byways Open to 
All Traffic (Boats) to cause 
problems. People who enjoy 
using these green roads on 
their feet or on horseback 
resent having to share them 
with growing numbers of 4x4s 
and trail bikes. 

Frank Tait, of Alton, Hamp- 
shire, for example, is among 
readers who have written in 
support of my plea two weeks 
ago for urban pedestrians to be 
better protected from cars and 
lorries that are driven too fest 
and whose drivers treat foot- 


paths as an extension of the 
roadway. I suggested kerbs 
should gradually be made too 
high for v ehicles to mount and 
that particularly dangerous 
areas should be railed off. And 
I thought we should copy the 
French and raise pedestrian 

o ms g rng w high pivot g h to dam- 
age speeding cars. 

“No doubt central and local 
government will say it would 
cost too much," he comments. 
"Only when one takes quality 


Users should also pay a fee to 
help make good the damage 
they cause. Here there is a pre- 
cedent the Forestry Commis- 
sion does exactly that when it 
opens its roads for car rallying. 

To be fair, all the makers of 
4x4s give buyers literature ask- 
ing them to follow a driver’s 
countryside code or conduct 
produced by Lara, the *-anri 
Access and Rights Association. 

Lara, which fights for the 
legal rigit of off-readers to con- 


Money can be made from allowing 
owners to play with their machines 


of life into consideration do the 
figures start to stack up ” 

Tait is no push bike-riding 
environmental fanatic - “1 own 
two cars and once h«<i a Land 
Rover” - but he hates the way 
oar green roads are being 
turned into quagmires by 
four-wheel drives. 

“Legislation has allowed 
these byways to be used at all 
times by those who want to 
test out their vehicles under 
off-road conditions. So once 
again pedestrians are harried 
in an environment where they 
might expect peace and 
safety." 

Unlike militant ramblers, he 
does not wish to ban 4x4s and 
trail bikes but reckons their 
use of Boats should be limited 
to a number of days each year 
decided by the local authority. 


tinue to use Boats, tells them 
how to behave. “Travel at a 
quiet and unobtrusive 
pace ... do not use green roads 
when they risk bring ifamagpri 
beyond a point of natural 
recovery when the weather 
improves ... be courteous to 
other road users, including 
walkers, and take great care 
when, passing horses." 

And it warns of pitfalls. 
Examples: Not all green lanes 
have vehicular rights so 
always check first If a route is 
not obvious, ask locally or 
rfiprfc maps held at highway 
authority offices." 

Objectors would have far less 
to complain about if every off- 
roader followed Lara’s code. 
But it is plain that many of 
them do not 

At the «mniB time, it bag to 


be said that one huge farm 
tractor and trailer can do as 
much ffainflg n to a green lane 
in winter as a whole convoy of 
light 4x4s. And that some walk- 
ers feel just as venomous about 
riders as they do about off-road 
drivers, complaining that 
horses’ hooves cut up soft 
ground far more than human 
feet Which I am the first to 
admit they do. That is why rec- 
reational riders such as me are 
quite properly banned from 
areas such as Ashdown Forest 
in Sussex when the conserva- 
tors consider horses would 

Hamag p rain-wn aTtpH soil unac- 
ceptably. 

So what are the poor 4x4 
owners, all dressed up in their 
knobbly tyres with nowhere to 
go, to do? They should buy one 
of the specialist off-road maga- 
zines published month - 
meet newsagents have them - 
and turn to file small adver- 
tisements. Landowners have 
realised money can be made 
from allowing 4x4 owners to 
play with their machines over 
rough country - for a fee. 
Some even provide a pressure 
washer to get rid of the filth 
afterwards. 

05-roading on these private 
courses will not offend walkers 
or riders. It is a nice little 
earner for farmers who are 
down to their last Jaguar. And 
4x4 owners who have not been 
on a training course will get 
some idea what their vehicles 
ran do when given Hie chance 
to show their mettle. 


MONTE-CARLO 

PARC SAINT 
ROMAN 

Residence with 
private pool. 2 room 
apartment Prime 
condition. Nice view. 
Cellar & Parking. 

A AGEDI 

^Tel 33-92 165 959 Pax 33-93501 9*2j 


COTE D’AZUR - VENCE Spacious 4 bad 
vBa, B>&u3*va small OcwOL pod, 15 
mtos Mce abport. FFc 1. 7m. Tab UK owner 
0883 682842 (home) 0923 28931 1 (ottos) 


INTERNATIONAL PROPERTY TRIBUNE, 
ftee property & sendee nwgaztoek Report 
Boo 0483 455254 Fax 048345*888 


LUXURY SEAFRONT 
RESIDENCE 

On TWO RJ30R8, RAJLY HJW4&EQ M 

West Bay Street. Nassau. Bahamas. 
5 BFnanoMs, each imth bath, study, 

LARGE UUM3, MO AW &AHAIU 
HOCUS, LAMB KTTOEN AM> PORCH, 
QUEST HOUSE MIH 3 APAimma AU. 

STRUNG INI .5 A£SE3. 

Offers above US $1*1 comsdereo. 

Reply la Bck B23B9, Financial Tima. 
OMSouttwsric Bridge, London SET 9HL 


SWITZERLAND viujiiu'/ollon tfc&ftpijtll 

B one m looking tor toe uttneie. unapt* onvjronnwn i hi own 3 Rome tor saarty 
and part-time or permanent residency, viltais In tna region of Momreiu In 
Canton Vaud offers the ultimate four season solution to pollution free, yet 
varied and full modern lifestyle, set in a cadre of traditional village values. 
Situated si a comfortable aWtuda of 1300 m, i) otters every conceivable facMty, 
tram aiding to golf. Our brand new building the 'Oapnno' la a email, select, 
fraenold devatopmant walabto for sale to non-resident faratanars. sftuaiod in die vary 
heart of me resort. H la qi*s empty, beyond wards... Out w*h reach and com mm hg 
distance from Geneva, Lausanne. Bam. Qstaad and fust about anywhere else bi 
SMzeriand or il of Europe. We am detglttd » offer tor the dot fane in the BraiM 
pubSft dttse 1 to 3 badoexn ncompantoto drtat style apartments. Thom has never 
bean a more taeauau deMtapmert to g* retort of arguably artywhem In French 
speaking region o! SurfReriOKl 

Deport* foot £1S£M Prices taro £1 30000 (Fr-iAtCUttfl 

Up In 50% financ in g ov rtnM c at Sw h c Franc ww l yuy cates of npprew 6% 

These freehold properties represent in* vary Best example of apartments, 
Chela* and bouses which we build, manage and promole In Swtuerland and 
America. Leonards Properties biternatlonaf is a British owned Swiss company 
wlih over 20 years experience, offering lull advice on invesimenie boih 
Swiss end worldwide. Company domtcillailon and work permits for cflsnia 
B»Wng permanent Setae or U.S. reakfom Mann. 

LENNARDS PROPERTIES INTERNATIONAL 

Ferkrtiar nfamfcn otete of men 

-■ tffi'Sat Qaa or oai-asa bbtotim ana. c—wg» mflwcmdi up w a— 


SWITZERLAND 

SteSBofanfcuw* tetoorfart 


IBS 

I Lake Geneva & 

: Mounta in r esorts 

CHALET In VULARS, 1 

158 OtABLERETS, LEVSBi CSTAADI 

VMM. CRANS-UONtKNA, VER&ER. 

at Aon SR 200000/- Cre* boHaa j 

REVACSlA. 
a ns dtltoaMM-CH-izn &8EW2 1 
jLejtglWag - ftt 73412201 


FRENCH PROPERTY NEWS. Free Monthly 
Old. new and aM prop., legal column a*. 
Arte lor your ires copy now 081-542 0301. 


SPAIN 


PATAGONIA ARGENTINA 


65,000 HECTARES 

(160,550 Acres) 

Traditional Patagonian Estanda in full production 
24,000 Sheep 

Main House and Staff Accommodation. 

Sheep buildings. Fenced paddocks. 

Fishing on the Rio Gallegos. 

Currently let with a manager and full complement of staff. 

FOR SALE FREEHOLD WITH OR WITHOUT VACANT POSSESSION 
inclusive pace on apfucauqn 

Estancias In Buenos Aires, Santa Fa and other Provinces 

Various ResWemiai. stud, Polo and Agricultural Properties 
ranging In sire between 2.700 Has and 84.000 Has 

WYKEHAM 

MANAGEMENT SERVICES 

hi Bs As: *54 1-311-9657 bi UK: 0783 882703 

Fax: +54 1-31 1-3832 Fax: 0723 864329 


'msiwrEGWirGz 


La Mancha, Spain 



EXCLUSIVE SHOOTING 
ESTATE 

Fantastic wild partridge 
shooting. A magnificent, newly 
built and frilly decorated 
manor house 770 ha pins 
lease, 300 ha. Price: £l-3m 
Fax (Int) 46 8 21 48 76 

COSTA DEL SOL PROPERTES Markets 
Offices. For intormatton ft Plica Wring 
001 9033781 flrtyrtme. Fax 3369 

MOTORS 


JEMCA London' s Largosi 
Dealer for LEXUS 
Tel 081 203 1086 

ttesaop Lexus. Experience fat hand the 
buy of the l*s* range. DemonetmUona 
at homo orofSco. Tot 081 4S9 0006. 


SOUTHERN SPAIN. Country vldns. 
Fbtcas (farms) as of rear m one of the 
most baaudU areas bi ooetham Spain, 
hetodtog 2D ol lha Itega* nrturo raronw 
to Eurapo. Atoo egarta wanted- AXARQUIA 
REAL ESTATE S.L Ptaza da Atafaua 5. 
29754 Compata (Malaga) Spain. 
Trt: (34 5 2SS3968 Fwc (34) 5 2553567 

LAROE FARM 3,800 HS IN CENTRAL 
SPAIN Agrtartura. cab*, l at tanln u unh, 
teadfeta aymenv BOO l*. smlrtlna. 342 Ha. 
WWnyard. linrua Guaaihouae. ate.. For 
Moniwtknpleaaa caa or tn to: Mr ooeto 
fe«.84«6B73314 

BBA DAUTIMLA, two befaom tatota aa*. 
douHa sMng-room, posa&My Of JoWng 
them, own private terrace trim stunning 
riaw over BXro. aaa, marina. TaL 010-39-2- 
38315616 Fac 0103S3683I3740 John. 

KEA CALA UjONQA Panhauw3 bed tege 
tar. Brttei canto ESSjOOa Saw Eulrta2 M 
ipNQUDaOoMCtufekiHrtndU 
OWSt 2DS204131 Fwc 01031215317112 


SPAIN - Bank rop nanwim l n ni from £20000 
Cotta dal Sol A Goat Btanca. Abo new town 
houaaa. aparte, vrtaa. pta* • . SOL Y MAR 
Tet 0273 TT7 413 Fax 0273 207 893 


MALLORCA, new 200 aqm. b*. ttMrtnwm to 
fast Wng area cA Palma, orfy 6 unto, bay 
vfaw. marmor. wood. poof. ato.Ptas 41 Mrt, 
private 061 72-48B1B6 (Qennany) 

SOnOORANOS, Soratwm spefcfa wedurive 
QoH A Marina Eateta. For beany ro-sote 
vfcs & boacWroni apfa. Col Euro Property 
AJriMil 072588251. fax 07g 89394 


V 


LAND: SPAIN 

6,183 sq. m Prime Site. Divided into three plots or os one- 
Planning for Urge luxury villa taking two plots. 

In the golden mile near King Fahad's Palace between 
Marbdla and Puerto Bonus. Situated on a hill with 
uninterrupted views of sea and Puerto Bantu. 
Tel/Fax 34-5-2822739 




CANNES CENTRE APT. 

82 sq. m. 2.7 acre gdn 
20m pool. Private 
garage/cave/paridng. 
Two bed, two bath, 
separate WC, balcony, 
firont/rear unrestricted 
views. Calm, immaculate. 
One owner. 

FFR 1.4MIO 

Tel: 0428 607282 


SB SWISS ALPS 

um LES DIABLERETS 
Apmsioiits and chalau In typical 
Swiss village (or holidays & Investment 
whiior & summer skiing (3000m) 
Prices from SF 250,000 (£1 13.0001 
with permission lor foroigriars to buy. 
Local Swiss mortgage avotebje^^ 
Rtog London on: |er£§ 

081-882 5918 E3 


BOCA RATON/PALM BEACH Ocsmton A 
Qolfcourse properties available. Buyers 
neprosertaOan, No Fee. Contact: ftoetyn 
Caresna Arvlda Really Sales Ltd. 
TeC 407 479 6415 / Fox 407 241 8028 

COTE D'AZUR private safe stone buB vBs 5 
bods. 3 baths, pool. Nr Monte Carlo 
Cl 85400 ownora 01033 93 57 28 52 


ALPS. Wide range of properties to French 
and Swtaa Afpe. Ap* - FF2B0«Bv. chrtete 
- FF 050,000* 4 owners - FF 185.000. 
Save* bmwbBwUd 081 5701770 


CORFU VILLA ON THE SEA FOR 
SALE. 6 bedrooms. 300 m*. £550.000 
Faoc 010*191 228120 


LONDON PROPERTY 


You won’t believe you’re 
so dose to the City. 


As the City of London 
starts buzzing again, you’ll 
probably want to live 
within walking distance 
of where it’s all hap- 
pening. Yet you’ll also 
need an oasis of tran- 
quility to relax in after a 
tough day. 

You'll find this and 
more at Hermitage Court. 

A selection of 2 bed- 
room apartments are avail- 
able for sale. Spaced 
around a quiet landscaped 
courtyard, some are fur- 
nished or have sunny bal- 
conies or conservatories. 


There are video 
entry phones, por- 
terage and secure 
underground park- 
ing, and at prices 
from £129,000, you 
can see why they’re 
already proving so 
popular. 

Hermitage Court 
- outstanding quality 
apartments close to the 
City - and an investment 
that looks very good 
indeed. And with prices 
as they are, now’s the 
time to buy. 

Why not come along 



suaxcrio cowrua and stuns. mas coaco «> riM o» O owg iowbs. a» ai om smb omcL roa dtuks. 


and see the show apart- 
ments off Wapping High 
Street, London El or call 
071-481 2457 (24 hours) 
or fax 071-232 2379 for 
details. 

^Bovis Homes 

MOV' 


VIEW TODAY 10 am - 4 pm 

Blackhurnes Mews, Mayfair, London Wl 

SHOW FLAT TEL: 071 409 7232 


A newly built block of seven flats situated between Grosvenor 
Square end Park Lane (tamecflalefy behind American Embassy), 
each flat with a secure underground parking space. New 75 year 
leases, and 10 year NHBC guarantee flats available of one, two or 
three bedrooms, prices from £260,000 to £560,000. Lift to ail floors, 
fuliy fitted and equipped kitchens, video entry system and security 
alarms, full gas central boating. Secure private parking. 

VIEW TODAY- 10 am - 4 pm 
[sAvnxs| BSS?-| Aylesford 


071 7300822 


071 4081181 


071 351 2383 


ALBION STREET, LONDON W2 

A great opportunity la acquire whu is urtdoabtcdly ooc of the finest homes in the 
Hyde Pert Erastc, having rccenUy tmdergope complele refiahishineat using ifae finett 
imiwiaii to provide a out comfortable, btmrions and quiet family accommodation, 
with the open spaces of Hyde Park only a few minutes away. 

Entrance Hall +Siubtg Rotxn ^ Drawing Room 4* Dining Room 
+ Rilfy Fitted Kitchen ♦ Study ♦ 5 Betfrooms ♦ All with cn suite Bathrooms 
♦ 2 Goesi Qosfcrooms + Surff Room with en suite Bathroom + Conscrvasxy 
+ Terrace ♦ Pnrio ♦ Sophioacarcd electronic sutvtallaace 
♦ Specia l ist paint finishings + 3 zone central besting ♦ Central vacuuming sys t em 
♦ TV A srieUile TV ♦ Charcoal water [ihrartaatoofteaer noil 
FREEHOLD; £975,800 

HAMILTONS 071 792 4330 


LONDON 

RENTALS 


CHELSEA HOMESEARCH ICO W. 
repre s ent the buyer to aavo time and 
money: 071 937 2281. Fw 071 9S7 2282. 


RIVERSIDE FLATS. City, 1-3 tied rooms. 
From 09,500. BARNARD MARCUS Trt 
071 636 2738 Faa 071 438 2849 


BAflBCAM EC2. 3 bod. 2 recap. 2 baft. laL 
La« 118 yr«. (175,000 BARNARD 
MARCUS Trt 071 636 2738 Fax 071 436 
9649 


COUNTRY PROPERTY 


SAVILLS 


MAYFAIR, LONDON Wl 

A fourth floor two bedroomed 
apartment located within s 
portered, purpose built bJock with 
nndeTground garage space and use 
of loft storage. Lease 86 yeais 
Price £315,000 

071-7300822 


SAVILLS 


LETTINGS MANAGER 

Required for 
Hampstead Office. 

Apply in writing with CV: 
SaviUs, 7 Fbrrios Comt, 
London NW3 IQS 

0714314844 

(RcfiNDK) 


KBfSfNOTOMENntAL L0KXM LoryM 
■Btaettan Ol quality prepnrtiaa. £ 180 - 
ElSQQpw. From 3 wk* to 3 yra. Chart 
AWOCttW 071 S38 S80EL KFTpm 


CHARLOTTE PARK ■ OXSHOTT • SURREY 

The Heart Of The Surrey Tradition 

J.V 



OK ** LO VIM 


ROY JAMES 
FANCY 


Tbt cfoisk aadsana of ike £C*nfl7 bettu a and tbt M2J, dfij ban* kst At very bighta 

faithfully rtedptared in this outttaudiug mad spro '/ Rations wuA the following accommo date*: 
snhftnnlMl property, the laa re an nclnuw 4 reception rooms, 5 bt Jroows, 4 bahiovms. 
devehpaaaofsa- triple garaging. 

Looted otty nad> of Loudon's orportt Price E795J000 FnehokL 

MMSrr LonreB Homes 

Sales office and rtowhome open 7 days per week 10.30am to 530pm. Tcfepfaone: 0372 842322 


Oaken (0372) KUD 


EATON MEWS NORTH 


By Appointment 

View on l4lh of May 
1CL00 a m to 4JXJ pm. 
or on the l5chof May 
ZOO pjn. to 6.00 pm. 

Exceptionally large Belgravia House, 
fat exclusive cobWestnoed mews, 
coexisting of designer dccor&icd 
dinning room und lounge, 

3 bedrooms, 2 hatha, 1 WC, 
gpragn- Featuring a unique 
old English pob/wine cellar. 
Long leasehold. Asb'ng £585 W) 
For details call DJ. Lewis 
USA 1-212-316-0027 
Fax; 1-212*865-4894 


OFF MANCHESTER 
SQUARE Wl 

Asupect rwtored/reconsmictBd 
double fronted period house 
conveniently located just north 
of Mayfair. 

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Soccer 

An English 
frenzy is 
on the way 

Peter Berlin on how teams aim to add 
to their playing staffs this summer 


T omorrow afternoon, on the 
last day of the English 
league programme, Man- 
chester United can finally 
take the field wearing the champi- 
on's crown. The surprise is not that 
they have won the prize for the 
second year in a row, it is that the 
coronation has been so long 
delayed. 

Early this year United were top 
by more than five wins. Yet their 
final triumph was delayed until the 
last week of the season - by dogged 
pursuit from Blackburn Rovers who 
were not knocked out of contention 
until they lost at Coventry on Mon- 
day. 

Manchester United will remain in 
the spotlight for another week as 
they pursue the double against 
Chelsea in the FA Cop final next 
Saturday. There will be time to con- 
sider their strengths and occasional 
frailties then. The final weeks of the 
season have shown that the butter- 
flies United suffered when Leeds 
United closed on them in similar 
fashion two years ago have flown. 

Two years ago, while Leeds were 
wresting the title from United's 
grasp, Blackburn were clawing 
their way into the old second-divi- 
sion play-offs. It took a much-de- 
bated penalty to beat Leicester at 
Wembley and make Rovers founder 
members of the new Premier 
League as they were of the old Foot- 
ball League. Since then Kenny Dal- 
glish, the manager, has used the 
millions of Jack Walker to build a 
title contender. 

Blackburn, soccer and money 
have always gone together. The 
town is the birthplace of the profes- 
sional game. Rovers were founded 
in 1875 and turned professional five 
years later. They were the first 
northern team to appear in the FA 
Cap final when they lost to Old 
Etonians in 1882. The next year 
Blackburn Olympic beat Old Eton- 
ians. It was OS's sixth and last 
appearance in the final, the end of 
an era. Rovers won the fallowing 
season. Hard northern cash had 
banished the southern amateurs. 

Even though Blackburn were part 
of football’s old aristocracy, they 
are now the flashiest of its nouveau 
riche; a small-town club plucked 
from obscurity by an extremely 
wealthy Ian and competing with the 
old money of Manchester United, 
The fact that the league boiled 
down to a contest between these 
two suggests that, just as in 1884, 
money is a key ingredient of suc- 
cess. But it is no guarantee. A 
glance down the Premier League 


table proves that. 

When Dalglish became Blackburn 
manager he took over a solid sec- 
ond division team without any stars 
or the large, talent-stuffed youth 
programmes which the glamorous 
clubs are able to run. In the circum- 
stances he has spent his pile of cash 
with surprising patience. He has 
given most of the big-money sign- 
ings a little while to bed down 
before buying the next one and he 
has stockpiled young talent 
His squad is still shallow. In the 
first month the club struggled with- 
out the wonderful Alan. Shearer. 
Over the last month the majority of 
Its other seven-figure signings - 
Ripley, Batty, Gallagher, Newell - 
have been injured. 

Yet Blackburn plodded on. For 
the run-in, the core of the side, die 
central defence midfield , was 
made up of men who played in the 
promotion team. Their sustained 
challenge is proof that Dal glish can 
coach as well as shop. His team is 
big, fast, tough and hard working. 
Its success is based on relentless 
pressure. It counter-attacks quickly 
and makaa the most of comers and 
free kicks. Wimbledon have shown 
that this formula can turn a team of 
cast-offs and bargains Into a force. 
Blackburn have shown that even 
paying players £ 8,000 a week need 
not dull their appetite. 

W hile Dalglish was 
turning round a sec- 
ond division team, his 
successor at Liver- 
pool. Graeme Souness, was spend- 
ing large sums of money turning a 
good side into a mediocre one. Sou- 
ness has lost his job. So has Howard 
Kendall who managed Everton to 
two league titles. Today, Everton 
need to win while others lose to 
avoid relegation. 

Manchester City and Spurs also 
flirted with relegation. City chucked 
one last sack of money at the prob- 
lem and staged a rally which means 
they should stay up. Tottenham, 
who scraped clear on Thursday 
with a win at Oldham, tried the 
same trick but the more players 
they bought the worse they played. 

All three clubs have been weak- 
ened by boardroom battles. All 
three have switched managers In 
the last year. All three seem locked 
in an eternal cycle of reconstruc- 
tion. As each has slipped further 
behind the top teams, they have 
become more impatient for success 
hut have found greater difficulty in 
attracting the very best players. 
Stability, not money, was the miss- 



Cricket 

Dreams of a 


mg ingredient 

These three dubs are part of a 
weak group of eight or nine dubs at 
the bottom of this year’s Premier 
League. Last season. Crystal Palace 
were relegated with 49 points: at 
least eight Premier League dubs 
will finish with fewer points this 
year. 

Most clubs have had little prob- 
lem spending the increased wealth 
generated by Ihe Premier League, 
many have foiled to translate it into 
improved teams. The unprecedented 


carnage wrought by first and sec- 
ond division dubs an their elite rel- 
atives tn the two cup competitions 
suggests that file gap between the 
rich Premier League and the rest is 
not widening but shrinking. 

Many of the talented youngsters 
who shone for lower-division teams 
in the cups will make the leap to 
the Premier League this summer as 
clubs scramble to dose the gap on 
United and Blackburn by spending. 
The tenor of the auction has 
already been set 


Queen’s Park Rangers are taking 
bids for Les Ferdinand, sometime 
En gland centre-forward. The asking 
price is £4m and United and Black- 
bum have their bids in as do New- 
castle United, who are third and 
Arsenal, fourth. 

If George Graham, the parsimoni- 
ous Arsenal manager, feels he must 
spend such sums an the team which 
won the European Cup Winners 
Cup with such grit on Wednesday, 
then English football is in for a 
spending frenzy fids s ummer . 


trip to 

T o celebrate the 33rd year 
of the National Village 
Cricket Championship, I 
took my husband last Sun- 
day to see one of its opening round 
mntnhps &>r this season, which gave 
us some splendid cricket. 

We watched Barrington, near 
Cambridge, at home against Pytch- 
ley, who had come from near Ket- 
tering, Northamptonshire. Both 
tonmg are in group 16: Northamp- 
tonshire, Cambridgeshire and Nor- 
This contest was supervised by 
one umpire from each team. The 
Barrington umpire was a noble fig- 
ure, in the best village tradition of 
long, white coat for below the knees 
and clear decisions softened by 
smiles free of teeth. A tireless sup- 
porter of his village's cricket, he 
bad moved from playing to umpir- 
ing as years passed by. 

Barrington Is keen on its cricket 
Gary Smith, the captain, looked 
down last Sunday's page in the Bar- 
rington score-book, in the care of a 
villager, and told me "nine of the 
lads are from the village". 

A cement works not tar away 
employs most of the village and 
supports its cricket The works is 
going to pay balf the cost of extend- 
ing the sturdy little pavilion. 

Cricket and football are played an 
the sflmn stretch of long, thin vil- 
lage green, cut as occasion 
demands. The wicket did not look 
bad on Sunday, but the cutting of 
the uneven outfield that weekend, 
ready for cricket, had not served to 
speed it up. Whatever landed on the 
outfield stopped dead. Barrington 
players knew its evils and some 
took aggressive action to o v ercome 
in cluding “the famous square 
upper-cut airborne towards the 
boundary". 

The championship is organised by 
The Cricketer ma gazine , which has 
no Illusions about the difficulty of 
finding such teams. Susan uni, who 
Is one of these running the opera- 
tion, laughed when I asked whether 
players are meant to live in their 
villages. “That would be impossible 
to work out or enforce. We would 
spend all our time checking 
addresses." 

They have settled for getting 
together teams of village players. 
Every player must be a paid-up 
member of his village dub, who has 
played at least eight outdoor 
matehps for it in the last two sea- 
sons. No problem for Barrington. 

Every village must also provide 
an umpire for the first four rounds 
and a scorer fear all the rounds. Bar- 
rington’s scorer on Sunday was Mr 
Wilkins. Pytchiey’s scorer was Syl- 
via, who scores for them every 
weekend, "as a way of getting out". 
Sadly for Pytchley, the Barrington 
wicket-keeper, Marcus Jarman, kept 
the scorers hard at work with 50 in 
64 balls, including some fine shots. 
He was 62 not out at the end of 
Barrington’s 40 overs. 

His captain too was hitting the 
ball well before being caught 
behind for 22 , attempting an ambi- 


Lord’s 

tious cut. Young and generously 
built Keith Faint was smiting 
rather than hitting, with a vest six 
Into a nearby garden, than played 
on for 27. But the most sparkling 
cricket was one of those miraculous 
moments that can never really be 
described: a high, leaping, 
one-handed catch, feeing the sun, 
by a Pytchley deep Adder calm 
Weston, to remove Barrington’s 
hard-hitting Mr Heginbotham, 
scourge of the nearby garden. 

Scoring eased and in the end cap- 
tain Smith was not over-pleased 
with his team’s total of 178 for six. 

“I prefer about 200 in this sort of 
game,” be told me, but with a quiet 
smile. He knows his bowlers, 
starting with lively openers Faint 
and Chicken, experts at extracting 
nasty bounce from the Barrington 
pitch. No runs were scored off the 
bat by Pytchley until the sixth over. 

Bowless are allowed nine overs 


Teresa McLean goes 
to watch a fiercely 
contested match on 
the rural road 
to a cup final 


and Barrington’s opening spell on 
Sunday was enough to warn poor 
Pytchley of its imminent dismissal 
for 92. Barrington is used to getting 
through the first few rounds. It 
once reached the group 16 final, 
which it lost but which boosted 
morale and reenforced ambition. 

“The main reason we enter is to 
play in the final at Lords,” the vice- 
captain told me. 

The Cricketer confirmed this as 
the motive for most villages’ partici- 
pation. About 650 villages take pari 
each year. Sometimes the whole vil- 
lage turns out for the final, com- 
plete with village loyalists who 
have no interest in the game. Some 
hire five or six coaches to London. 
Troon in Cornwall, the first champi- 
ons, hired a train. 

The 1994 Championship Annual 
describes last year’s final between 
local rivals Kington (Herefordshire) 
and Frocester (Gloucestershire), as 
well as the banquet for players and 
wives at the Regent's Farit Hilton 
the night before. Hill told me: “The 
villagers have a marvellous time. 
It’s a real treat for them.” 

Might not some villages prefer a 
donation to their cricketing efforts, 
rather than a banquet? 

The question is less likely to arise 
this year because, the annual 
explains: “Rothmans UK Ltd, who 
have recently sponsored the compe- 
tition so generously, have opted out 
due to a change of policy." A new 
sponsor is wanted. 

AH that is wanted at Barrington 
is to reach Lord’s. In the next 
round, it is another home match 
Barrington versus Barley. I enjoyed 
the last game enough to go and 
watch the next one. 


J 


Tennis/John Barrett 

courts change 


Rugby Union 

Big guns battle 
at the fortress 


Derek Wyatt looks at the clubs in today's cup final 



Rome 


O n and off the court, 
there is a new look 
about this year's 
Italian Open. That 
old Romanian rascal Ion Tiriac 
has bought the commercial 
rights from the Italian Federa- 
tion. replacing International 
Management Group in that 
role. "I must have been road to 
guarantee them such a sum,” 
he says. “Please don't ask me 
how much it is. Every time I 
think about it I feint" 

To protect his health, Tiriac 
has shrewdly lured away IMG’s 
Cino Marchese, to help with 
the promotion of the tourna- 
ment. Together they have 
invited some blue chip compa- 
nies to the party: title sponsor 
Mercedes Benz, Nokia, Rado 
and IBM among them. Doubt- 
less they are paying hand- 
somely for the privilege of 
prominence, but it seems to 
work. 

Players and VIPs are 
whisked to and fro between the 
Hilton and the Fern Italico in 
the sponsor's gleaming limou- 
sines. Everyone who is anyone 
carries a portable telephone; 
many actually use them. 
Rome's beautiful people, who 
by tradition have always 
flocked to the elegant sur- 
rounding of the commercial 
village for lunch, are there 
again in large numbers - prin- 
cipally to be seen. 

Some have even been watch- 
ing the tennis where the theme 
of change persists. Two women 
who have been causing havoc 
are the 18 -year-old Italian qual- 
ifier, Adriana Serra-Zanetti. a 
pocket Hercules of a girl who 
smites the ball two-fisted cm 
both wings d-Ta-Seles, and trim 
Spirlea, a willowy Romanian 
who admits to being on "ffir 
terms with Tiriac. 

Serra-Zanetti. a former Ital- 
ian notional champion in all 
age groups from 12 up, has 
beaten Anke Huber, the world 


number 11, as well as Brenda 
Schultz, the 10th seed. These 
successes alone will earn her 
more ranking points than the 
combined total of S7 she has 
amassed from 15 tournament 
appea r ances since joining the 
professional tour last year. Her 
present ranking of 197 will 
Improve to around MX). 

The spindly Spirlea reminds 
me of another fine Romanian, 
Virginia RuzLci - especially the 
long legs - which, my wife 
says. I am not supposed to 
notice. They propel the 20-year- 
old Spirlea around the court 
with great efficiency as she 
thumps the ball into the cor- 
ners. She thumped too many 
for the four-time former cham- 
pion and third seed Gabriela 
Saba foil on Wednesday. 

How sad it was to witness 
the further disintegration of a 
fine athlete whose world rank- 
ing has slipped to seven- A cat- 
astrophic lack of confidence Is 
at the heart of her present 
problems, ft was here in Rome 
two years ago that the Argen- 
tine last won a tournament. 
But you would never have 
guessed it the way she ner- 
vously frittered away the 
points. As her coach. Carlos 
Kirmayr, said to me wistfully. 
"If only she could play her 
matches as well as she prac- 
tises!" Ah yes, "twas ever thus. 

Some things never change. 
One of them is Martina Navra- 
tilova. Even at 37 this remark- 
able athlete retains an enthusi- 
asm for the game that is 
infectious, “Sure, there are still 
things about my game I can 
improve," she insists. 

She had to improve on 
Thursday when she faced 
again Ines Gorrochategui, the 
20-year-old Argentine 
right-hander who had won 
their first meeting one month 
ago on clay at Hilton Head. 
The score then had been 4-6 7-5 
7-5 and Martina had been furi- 


ous with herself for letting slip 
a winning chance in the sec- 
ond set 

In Rome it seemed for a 
moment that history might 
repeat Itself. After winning the 
opening set easily on a cold 
and windy afternoon, Mart- 
ina's Length on return of serve 
deteriorated. Her opponent 
took her chances well and hit 
many blazing winners from 
mid-court to sweep through the 
second set. Order was restored 
in the decider as Martina's 
depth of placement improved. 
At 5-3. though, she was broken 
and she was fortunate that her 
younger opponent did not 
know how to sustain the pres- 
sure. Keeping the ball in play 
when it most mattered, Mar- 
tina broke to 25 for victory. 

Navratilova may not win 
this title. It would be surpris- 
ing if she did because in all her 
20 years as a professional she 
has never won a title on Italian 
soil. Furthermore, she came 
here at the last moment as a 
wild card to fill the vacancy 
left by the withdrawal of Steffi 
Graf. “I probably would have 
played anyway," she reflected. 
“After two first rounds [at 
Houston and Hilton Head] and 
a semi [Amelia Island] 1 need 
the match play." 

The tournament's need for 
her presence was even more 
serious. With Monica Seles 
understandably postponing her 
return while her father is 
being treated for cancer, and 
the date of Jennifer Capriati’s 
return still uncertain, the 
women’s game is over-depen- 
dent on the presence of Graf. 
Navratilova and Arantxa San- 
chez-Vicario. 

With this state of uncer- 
tainty and no new stars on the 
horizon it seems unlikely that 
the Women's Tennis Council 
will find a sponsor to replace 
Kraft General Foods which 
withdrew at the end of 1993. 


T oday fortress Twick- 
enham (two huge rak- 
ing new stands built; 
two to go), again 
posts “house full" notices. In 
the process, the gate for the 
PDMngton Cup Final between 
Bath and Leicester will beat 
the 66,000 for the. Varsity 
match last December and set a 
new world attendance record 
for a club game. 

Bath and Leicester are by 
some way the leading two 
dubs in the four home unions.. 
They badly need a European 
club competition if they are 
not to grow stale. 

Leicester were the team of 
the late 1970s and early 1980s. 
Before leagues became estab- 
lished, the cup competition 
was the criteria by which suc- 
cess was judged. Losing final- 
ists in 1978, Leicester then won 
three cups in a row and were 
losing finalists again in 1988 
and 1989 (against Bath). It was 
only last year that they began 

to re-emerge, winning the cup 
against Harlequins. 

In the 1970s Leicester played 
a style of rugby which was 
exciting, open, adventurous, 
intelligent and pacey. Gener- 
ally they did this with a small 
but perfectly competent pack 
and a fast-ish back-row. Criti- 
cally. in the five single posi- 
tions on the field, hooker, num- 
ber 8, scrum half, outside half 
and full back they had five 
international players: Peter 
Wheeler, Gary Adey. Nick 
Youngs, Les Cusworth and 
Dusty Hare. 

A decade on there is only 
one international in these sin- 
gle positions, the evergreen 
number 8, Dean Richards, the 
players’ choice for player of 
the year. 

Bath, by comparison, were a 
joke side. I should know. I 
played for them for four years. 
Under “Grocer” Jack Rowell 
this has changed. Bath emu- 
lated Leicester. They have 
done that very difficult; thing. 
They have, like the Australian 
national side, managed change 
successfully. 

With Rowell being elevated 
to the En gland coach is tide 
tiie end of the line for them? 


Brian Ashton, Rowell’s succes- 
sor. has been his assistant 
coach. As a player, Ashton was 
desperately unlucky not to he 
capped by England. He was. 
with Jacko Page, one of the 
two beet scrum halves in the 
country. 

In the 1970s, Page played 
when England beat Scotland 
7-6 - but he was not selected 
for the Australian tour of 1975. 
Ashton went as the senior 
player with Peter Kingston 
from Gloucester (also uncap- 


ped) as his deputy. 

The week of the first interna- 
tional Ashton had a family 
bereavement and flew home. 
Kingston won two caps and we 
never heard from Ashton 
again. 

Under Rowell, Bath's success 
has been quite asto nishing 
beyond anything the city has 
experienced before. 

Leicester always bad a more 
serious pedigree. Their annual 
game on Boxing Day against 
the Barbarians, which dates 


back to 1909, has always been a 
sell-out. Nevertheless, their 
comparative lack of success in 
the middle and late 1980s 
forced them to advertise for a 
chief coach. They made the 
sensible decision to bring in a 
fresh face, Tony Russ, from the 
Saracens club and have 
worked hard to make the jump 
back to first class. 

A win this afternoon would 
be a deserved return for their 
work. 

It will not be easy. Bath are 


a formidable team, able to soak 
up enormous pressure and 
score the winner when the 
game Is two minutes into over- 
time. Just ask Harlequins who 
lost in the semi-finals this year 
and in an epic final two years 
ago. 

It is now Bath who have fee 
five internationals in the five 
crucial positions: Graham 
Dawe (playing better than 
ever), Ben Clarke (ditto), Rich- 
ard EEll, Stuart Barnes and Jan 
Callard 

But, their best player at the 
season is undoubtedly Mike 
Cait who was capped right at 
the end of the game against 
Wales. Catt reminds me of 
Jean-Claude Gachassin, the 
free-thinking French three 
quarter of the 1960s who could 
play anywhere and frequently 
did. He was rugby's equivalent 
of Johann Cruyff the Dutch 
soccer star. 

In eight days, the builders 
will start hacking at Twicken- 
ham’s West Stand. Its replace- 
ment should be complete 
within 15 months. The RFU 
borrowed £24m before they 
knew that their share of the 
next television contract tor 
the Five Nations Champion- 
ship would net close to 
mm. 

Rugby’s negotiators man- 
aged to keep two secrets. The 
first was that Sky, the satellite 
channel, was never interested 
the second was that the bid; 
ding between ITV and BBC 
was very dose. In sealed bids 
ITV offered £27in; BBC topped 
it by £250,000. 

□ □ □ 



l*" 



4 - 1 



i: 

r' 


Next Friday, at the Dorchester; 
rugby pays homage to the the 
Penguins and to Tony Mason 
and Alan Wright, two stab 
warts of Sidcup who fomw® 1 
the touring side 35 years a? 0. 
Since then the Penguins have 
visited 32 countries including 
the Soviet Union in 1977, 
in 1984 and Malaysia in 190 4 - 
For players pari and present, 
rugby is still the beet amatejff 
team game in the maid. T&* 
Penguin club epitomises 
perfectly. 



WEEKEND FT XVII 


LLLJi* v, \ ■ 


^ K'lv v.’ 


N FINANCIAL TIMES WEEKEND MAY 7/MAY 8 1994 


BOOKS 


» L 


W it. 

I >.m! . 


Poet’s IT 


°rd life as 
art 


O f the great Ameri- 
can post-war poets, 
Elizabeth Bishop 
was by far the most 
sane. Her Mend Robert Lowell 
was a manic depressive; her 
mentor Randall Jarred threw 
himself under a truck; other 
near contemporaries, such as 
John Berryman and Sylvia 
Plath, also committed suicide. 
Bishop by contrast never acted 
the tortured genius. She had a 
bizarre, difficult life, she was 
absorbed In her art - often tak- 
ing a decade to find the right 
word to finish a poem. But 
when she died In 1979. it was 
her ‘modest lifelong imperson- 
ations of an ordinary woman” 
that were remembered. 

And so it is In her letters, 
where the ordinary woman, 
honest, affectionate, domestic, 
dovetailed with the extraordi- 
nary poet, reserved, finicky, 
always striving for the perfect 
composition. For anyone inter- 
ested in how life becomes art, 
this volume is a joy. An odd 
invitation to take Marianne 
Moore to the circus, for 
instance, recalls Efforts of 
Affection, where the two poets 
feed performing elephants 
brown bread. In the letters, for- 
mal Miss Bishop lets her hair 
down, but Is still just an echo 
away from the offbeat, under- 
stating, impeccably polite poet 
Her art has always seemed 
curiously mannered; in the 
light of these letters, it looks 
more like the natural exten- 
sion of her temperament 
Literary New York on the 
razzle, then, has Bishop’s 
charmed restraint. At a break- 
fast party Mary McCarthy 


/t'fV.v.f \t . 

' v “' 

r ( i,i 


ELIZABETH BISHOP; 
ONE A RT, SE LECTED 
LETTERS 
edited by Robert 
Gironx 

Chatto A Windus £25, 668 pages 


“wept into the batter” when 
she made lumpy popovers. 
Bishop got drunk on vodka at 
the Lowells, fell and brake her 
shoulder, and “I find I owe you 
$105 for my delightful ambu- , 
lance ride through the park." 
There is much good living 
(“please eat a lobster for me“) 
little gossip (“the newly mar- 
ried Valerie Eliot looks like an 
English podding"), almost no 
confessions. When Lowell 
pours out that proposing to her 
was “the might have been for 
me”, Elizabeth replies, four 
months later, only with an 
effusive thank you for a Christ- 
mas gift, ending “r e member 
me to your lady." 

Nevertheless, Bishop's 
letters form a vivid autobiogra- 
phy. Bora in 1911, her mother 
went mad, she was orphaned 
at five, brought up by grand- 
parents, and felt rootless until 
her forties - as the string of 
rapidly changing addresses 
confirms. After stardom at 
Vassar, Bishop was taken up 
by Marianne Moore, and won 
the Pulitzer Prize for her first 
poems, North and South, in 
1946. Letters to Moore and 
Lowell here stand out as 
labours of love: elegant, con- , 
trtved almost as works of art, j 
generous yet distant - Miss 
Moore takes four years to ask ; 
Miss Bishop to call her Mar- 
ianne. 

In 1951 Bishop, now famous, 
visited Brazil and fell ill in the 
Copacabana Beach penthouse 
of her hostess. Lota de Macedo , 
Soares. As she recuperated, 
Lota fell in love with her and 
asked her to move in. “It was 
the first time anyone ever 
offered me a home, or so much. 
Lota's gesture meant - just 
everything." 

She loved exile. Lota was 
devoted but strict - when visit- 
ing poets stayed up chatting, 
she pounded on the wall, order- 
ing them to go home - and 
they fought over Bishop's 
d rinking (a friend ambiguously 
called her “the soberest poet 
we've had here yet") After 15 
years Elizabeth returned to 
New York. Lota, ill and 
depressed, cabled that she was 
fallowing. They met at Kenn- 
edy Airport; at 6.30 the next 
morning. Lota crept out of bed. 
took an overdose and died. 

Elizabeth probably needed 
those dose to her to live on the 
edge of madness - she commit 
ted her next lover to an asylum 
- while she survived and 
rooted herself in the everyday. 
Salamanders, sulking babies, 
housepainting, trips to the post 
office, making a custard, fill 
her letters: as in her best 
poems, emotion and meaning 
suddenly emerge from a casual 
moment Of confessional poets 
she writes, “You just wish 
they’d keep some of those 
thing s to themselves." As the 
opposite of a kiss-and-tell mem- 
oir, this book is a revelation 
about the private woman 
behind Bishop's poetry. 

Jackie WuUschlager 


T here has never been 
much dispute that if 
it had not been for 
the second world 
war, Winston Churchill would 
have gone down as a political 
also-ran. Having entered Par- 
liament at the beginning of 
the century, he was overtly 
over-ambitious, an uncomfort- 
able colleague in any cabinet, 
changed party not once but 
twice, had a string of mistakes 
and lost causes behind him 
and a habit of losing his seat 
in elections. 

There is not much to be said 
for his performance after the 
war either. He sulked at the 
Conservative Party's defeat in 
the general election of 1945. 
though the result was more 

due to Social ghang ft than a 
personal judgment on him. 
Thereafter he stayed too long 
as party leader. He returned as 
prime minister when the Con- 
servatives won tite election of 
1951 and spent much of the 
next few years resisting advice 
from colleagues and friends to 


Noble through a nightmare time 

Whatever his defects, Churchill deserves better than this book says Malcolm Rutherford 


retire. The new post-war con- 
servatism owed little to him. 

Only recently, however, 
have attacks begun on Chur- 
chill's conduct of the war. 
Clive Pouting, the former civil 
servant who fell out with the 
ministry of defence over the 
Belgrano affair in the Falk- 
lands War, lays it on with a 
shovel. For Pointing, Churchill 
the war leader was no better 
than Churchill the peacetime 
politician: selfish, inconsistent 
and often plain wrong. 

If one accepts the initial 
premise that Churchill was a 
bad man to start with, the 
argument is carefully built up. 
The chapters on the second 
world war occupy less than a 
quarter of a book of 900 pages; 
the section on Churchill after 


1945 is perfunctory. Hie war- 
time prime minister has 
already been condemned by 
his words and actions before 
1940, mid the condemnation is 
not only political. 

Here is an example of Pool- 
ing's style: “Churchill was 
also not a particularly attrac- 
tive figure. He was below aver- 
age height (five feet six inches 
tall), with a large head (bald- 
ing from an early age), a small 
hairless chest, small hands 
and feet, a less pronounced 
version of his father’s large 
staring eyes, and smooth, soft 
skin (which he wrapped hi silk 
underwear and bathed twice a 
day).** Before that we have 
learned that Churchill “never 
travelled on a bus in his life, 
and travelled on the under- 


ground on only one occasion, 
when be promptly got lost” 
The sneering goes on. Pout- 
ing has further defects as a 
historian. He quotes selec- 
tively. He suggests that Sir 

CHURCHILL 

by Clive Ponting 

Sincldir-Stevensan £20. 900 pages 

John Colville, Churchill’s war- 
time private secretory, and Sir 
Alexander Cadogan, the head 
of the Foreign Office, were 
wholly critical of their politi- 
cal master. Quotations to the 
contrary are omitted. 

Ponting commits the histori- 
an’s cardinal error. He con- 
demns the past by the stan- 
dards of the present Churchill 


was not alone in regarding 
Kenya as a white man’s coun- 
try, nor in believing non- 
whites to be Inferior he was 
very largely a man of his time. 

Sometimes sonrees are 
given, sometimes not What is 
one to make of the throwaway 
statement that in 1934 on a 
cruise to the Dutch East Indies 
Churchill’s wife. Clementine, 
“fell in love with Terence 
Philip, who was seven years 
her junior and almost cer- 
tainly homosexual”? Who was 
(is) Terence Philip? Not even 
The Sun newspaper could - or 
would wish to - get away with 
a claim like that without some 
substantiation. 

By this stage the reader may 
sense that there is something 
wrong with Footing’s book - a 


tendency perhaps to drive ou 
relentlessly, just as Pouting 
accuses Churchill of an addic- 
tion to aerial bombing and gas 
warfare. The reader would be 
right 

This is a pity because Chur- 
chill clearly was an infuriat- 
ing man even to those who 
served him loyally. He made 
many mistakes in war as well 
as in peace. For instance, he 
underestimated the submarine 
and came to believe that only 
he could handle Stalin in a 
way that Neville Chamberlain 
once believed that only he 
(Chamberlain) could deal with 
Hitler. 

Yet Churchill did stand up 
to Nazi Germany. If Halifax, 
the only other contender, had 
become prime minister in 


1940, subsequent European 
history might have been very 
different Churchill also had a 
way with language which, 
although sometimes florid, 
caught the imagination of the 
British people. Sometimes he 
had the common touch. As 
even Ponting admits. It was 
Churchill who insisted that 
the Local Defence Volunteers 
called for by Anthony Eden at 
the War Office should be 
renamed the Home Guard. 

The best quotation in the 
book comes from John May- 
nard Keynes reviewing one of 
Churchill’s early works in 
1919. Keynes wrote of Chur- 
chOl’s “undoubted conviction 
that frontiers, races, patrio- 
tisms, even wars If need be, 
are ultimate verities for man- 
kind, which lend for him a 
kind of dignity and even nobil- 
ity to events, which for others 
are only a nightmare inter- 
lode, something to be perma- 
nently avoided." Yet night- 
mares occur and Churchill was 
there. 



Grounded flight 
of imagination 

Brian Sewell castigates the bumblings and 
pretensions of self proclaimed installation artists 

T urning these pages Embassy is an example, Is (or and window dressing, tele 
is to experience was), we learn, art as a pro- slon and the computer ganw 
the tedium of scan- cess, not as an object - It was, Indonesian shadow puppi 
ning catalogues of it seems, more important that seem a prime influence. Soi 
light fittings and Michelangelo should spend depend on sexual image: 


Valentine Prfnsep, protegee of Edward Burne-Jones, poses in the studio of Ms purpose-built Holland Park house In the 1870s. Prinsep, celebrated 
Victorian painter of 'Hie OeM Imperial Durbar*, commissioned the house from architect Ptflip Webb, whose work was characterised by Gothic forms 
aid hybridised medtevafem. From ‘Artists’ Houses In London 1 1764-1914 by G8es Wafldey (Scoter Press £50, 291 pages) 


T urning these pages 
is to experience 
the tedium of scan- 
ning catalogues of 
light fittings and 
office furniture, lift cages, 
sound-baffling materials and 

air mndifinnlng dur t* If thin 
book is intended to excite our 
interest, engage our sympathy, 
or at the very least to enter 
into reasonable intellectual 
debate with those who find the 
ins tallatio n risible as an art 
form, then it is utterly 
defeated by the mannerisms 
and affectations of design. 

The brief introduction offers 
little enlightenment, its 
notions of hybrid discipline, 
the questioning of autonomous 
art forms, the crossing of fron- 
tiers, the activation of space, 
tiie specific influence of local 
sites, are already common- 
place In criticism and excuse — 
we all already know that a 
bold band of critics believes 
and preaches that painting bag 
d e sce nd ed from the wall, that 
sculpture has stepped from the 
podium, that art is now any- 
thing anywhere If anyone says 
so, and that Everyman is now 
an artist if he thinks he is. 

The text avoids the pitfalls 
of definition by declaring that 
the book's compilers do not 
wish to confine the subject so, 
but only to set ont “a series of 
markers", and only by the 
weary turning of pages do we 
learn that anything from 
grand pianos, billiard tables 
and the racing car, to empty 
rooms, shafts of light and the 
discarded jockstrap are now 
the stuff of art 
The Happening, that tire- 
some business of the late 
1960s, of which the young man 
who knelt in Grosvenor 
Square to shoot an imaginary 
arrow from an Imaginary bow 
at the eagle atop the American 


Embassy is an example, is (or 
was), we learn, art as a pro- 
cess, not as an object - It was, 
it seems, more important that 
Michelangelo shonld spend 
four years with a crick In his 
work and paint In hie mouth, 
than that he should have left 
posterity the Slstlne Ceiling. 
Installation, we learn (and 
here; by we have a def- 

inition of sorts), is “a method 
of art production”, justified by 
Duchamp, Schwitters, Dada 
and Surrealism, the develop- 
ment from Schwitters’ pretty 
little Merzban (a tiling of fairy 
tale fantasy) to the vast assem- 
blages of last year’s forgotten 
art school graduates, seen as a 

INSTALLATION ART 

text by Michael Archer 

Thames and Hudson £28, 

208 page 

match for the rise of the Ital- 
ian Renaissance from Masac- 
cio’s Brancacci Chapel frescoes 
to the Sistine Ceiling. 

Hie trouble with installation 
is that so little of it is by any 
stretch of the imagination 
beautiful, and little of it now, 
post-Dada, post-Surrealism, 
stretches the imagination, for 
we have become inured to 
shock and the frisson of dis- 
may. The vast enlargement of 
a tonguing kiss is merely a 
trifle nasty, the functionless 
machine an old familiar, the 
inconsequential conjunction of 
even the rolls of felt and grand 
piano of Joseph Beuys already 
too homespun to be noticed. 

Too many installations 
make the same demands as 
advertisements on hoardings, 
and we close our eyes; too 
many have less to do with the 
arts of painting and sculpture 
than with the illusions of the 
set for theatre, ballet, opera 


F or all the high-speed 
electronic gadgetry, 
public disclosure 
requirements and 
deep analysis, stock markets 
remain sadly Imperfect mar- 
kets. Why? Because although 
they anticipate the future, 
they cannot predict it. 

What a joy, then, to discover 
that the missing ingredient 
has been hiding under our 
noses all this time. It Is called 
financial astrology. 

Do not let those derivatives 
get you down. All that the pru- 
dent investor, hedger or specu- 
lator needs to know is con- 
tained in the “ephemeris", the 
dally record of the positions of 
sun, moon and planets. 

Now, the ephemeris may 
look a little daunting at first 
No matter. You can master the 
basic theology of cycles, 
orbits, nodes, transits and 
trines by plodding through 
Bates and Bowles’s book; then 


I t has to be said at once 
that V.S. NaipauVs new 
book is not a "novel” in 
the usual sense of the 
word. His publisher bravely 
claims that A Way in the World 
is "unconfined by the conven- 
tional novel form, but in a clas- 
sical story-telling tradition". So 
what is it, this so-called first 
novel for seven years from one 
of today's half-dozen most 
esteemed writers in the 
English language? 

The answer lies in Sir VIdia’s 
own (I assume) sub-title - A 
Sequence. It Is a collection of 
nine self-contained but inter- 
linked episodes drawing on the 
writer’s autobiographical mem- 
ories of Trinidad and the adja- 
cent South American, coast, 
and adding a number of 
extended versions of scenes 
from the history of that region. 
It becomes, I suggest, a Medita- 
tion on a number of themes - 


A fortune from the stars 

Christian Tyler consults an astrological guide to investments 


spend six months as a student 
at Bates’s Astrological Associ- 
ation, then buy a computer, 
programme it, and Bingo! You 
are an extra-planetary insider. 

Well, almost The science of 
astrology Is still somewhat 
undeveloped, warn Bates and 
Bowles. Furthermore, “there is 
no universal astrological for- 
mula that wm be mechanically 
applied to suit all occasions.” 
Later they say: “There are so 
many astrological factors that 
affect the market. ..even the 
strongest cycles are over- 
whelmed by other factors." 

Oh. Perhaps that is why the 
Black Monday stock market 
crash occurred 12 days after 


the ominous eclipse on Octo- 
ber 7, 1987. Perhaps that is 
why, for each event, there 
seem to be only one or two of 
the astrological brotherhood 
who get it right in advance. 

But lack of precision does 
not explain an the inconsisten- 
cies. For instance, B and B say 
that fellow-astrologer Daniel 
PaHant foresaw the 1987 crash 
“well in advance.” If yon look 
at Pall ant’s prognostications 
in the Weekend FT yon will 
discover that as late as June, 
1987, he was predicting a bull 
market at least until Novem- 
ber. No mention of a crash. 

One suspects a tittle retro- 
spective tidying up is going an 


MONEY AND THE 
MARKETS 

by Graham Bates and 
Jane Chrzaoowska 
Bowles 

HarperCollins £9. 99. 200 pages 


here. It turns out that every 
event does indeed have a plan- 
etary explanation - after the 
event. And even the most 
superstitions punter may find 
it difficult to swallow the idea 
that stock markets and the 
companies quoted on them - 
indeed, whole countries - have 
astrological birth charts just 


like ns from which their finan- 
cial fortunes can be plotted. 

Determining the time of 
birth of a country - you need 
it to monitor the underlying 
economic cycles - “ts not 
always a straightforward 
affair”, concede B and B. But 
company horoscopes are easily 
dated from the day of registra- 
tion. (What you do about name 
changes, mergers, and so on it 
is not clear.) 

Yet it is obvious that Polly 
Peck’s troubles stemmed from 
“its particular sensitivity to 
eclipses and a crushing 
sequence of Pluto transits.” 
Virgin Atlantic’s natal con- 
junction of Mercury and the 


moon dearly augured well for 
a company in the airline busi- 
ness. Mercury had winged feet, 
remember? 

The fundamental principle 
to grasp is that free enterprise, 
represented by Uranus, gets its 
resources (Venus) from the 
investing public (the Moon). 

There is a superstitious 
streak in all of ns, so It is not 
impossible that financial 
astrologers are being secretly 
consulted - as they claim - by 
some heavyweight stock mar- 
ket institutions. 

Yet one sniffs a logical loop, 
a Russellian paradox, here. If 
financial astrology worked, 
then the markets would die- 


Fiction/J.D.F. Jones 


A great chain of changing vision 


on the Caribbean's historical 
legacy, on the relationship 
between Indian and African, 
on the clash between Spanish 
and British imperialism, on 
colonialism itself. 

The format is so unusual 
that it needs description. We 
start with a brief youthful 
memory of Leonard Side, Trini- 
dadian mortician and cake dec- 
orator, who possesses “an idea 
of beauty”, an inheritance 
whose origins must remain a 
mystery. We continue with 
another fragment of autobiog- 
raphy. still in Trinidad, which 
begins to develop the wider 
theme of the book - the 


unknowable sequence of the 
island from aboriginal settle- 
ment to 18th century Spanish 
settlement to English maraud- 
ing, and then colonial rule, up 
to more recent immigrations. 

Then we have a “story" 
based on a modern-day 
up-country expedition, with 
the first (and mystifying) sight- 
ing ol a doublet from Tudor 
times, relic of an old betrayal, 
later to be explained. And so 
back to Naipaul’s early years 
in London, where he discovers 
his metier and begins to under- 
stand “the great chain of 
chan g in g outside vision" of the 
Caribbean, starting with John 


A WAY IN THE WORLD 

by V-S. Naipaul 

Heaiemam £14.99, 369 pages 

Hawkins and Sir Walter Ral- 
eigh. From here, after a por- 
trait of the Trimdad-Panamian 
communist “Lebrun” and his 
role in the writer's develop- 
ment, we are ready for 
extended chapters on Raleigh 
and Francisco Miranda, the 
Venezuelan revolutionary, pre- 
cursor of Bolivar, who, like 
Raleigh two centuries before, 
ended an adventurous life in a 
prison celL 


Nai paul's fascination with 
Miranda is palpable and his 
chapter “In the Gulf of Desper- 
ation” is brilliantly done, stim- 
ulating some of his persistent 
themes. Initially, writes Nai- 
paul, “I saw him as a very 
early colonial someone with a 
feeling of incompleteness, with 
very little at home to fell back 
on, with an idea of a great 
world out there, someone who, 
when he was out in this world, 
had to re-invent himself I saw 
in him some of my own early 
promptings . . . But Miranda 
was also, right through, from 
the time he left home, some- 
thing of a confidence man . . 


Naipaul is reminding us here 
not so much of his Caribbean 
fiction as of his wonderful his- 
tory of Urn area. The Middle 


He finishes with a brief chap- 
ter that takes us back to his 
two East Africa masterpieces, 
in A Free State and A Bend in 
the River. This chapter is auto- 
biography again, taken from 
his teaching days at Makerere 
in Uganda. We have come frill 
circle: Blair, the Trinidadian 
colleague we have earlier met 
in pre-student days, has 
become an international civil 
servant; he visits, is murdered. 
He will be buried in the funeral 


and window dressing, televi- 
sion and the computer game - 
Indonesian shadow puppets 
seem a prime influence. Some 
depend on sexual imagery, 
others on the visual pun (exca- 
vating machines stationed in 
the forecourt of the British 
Museum, for example), or on 
the sheer scale and number of 
the elements involved, or on 
the contrast of hallowed set- 
ting and unhallowed, even 
mischievous, intervention. 
Some incorporate printed texts 
for ready exegesis, others con- 
sist only and entirely of 
printed texts of Sybilline 
obscurity. 

On the rare occasions when 
beauty plays a part, it is the 
beanty of material and natural 
aorident - a flooded crypt, a 
shaft of sunlight, the broken 
stones of Richard Long’s 
arrangements - all beantiftil 
without an artist there to tell 
us so; and sometimes it is the 
beauty touched on by the dis- 
creet interior decorator - mat- 
ters of placing and proportion, 
texture and tone - but these 
can be seen a-plenty in the 
pages of The World of Interi- 
ors, unblemished by the 
fumbling, bumbling and pre- 
tension of the self-proclaimed 
installation artist. 

This wretched book per- 
forms two unintended func- 
tions - it offers all the assis- 
tance of an old-fashioned 
“How to ... " book, so that we 
may make our own Installa- 
tions from the detritus of the 
household - potato peelings 
and a used condom, for exam- 
ple. should intrigue one’s visi- 
tors - and it reveals the busi- 
ness to be, with rare 
exceptions in which political 
allusion or autobiography play 
their part (nsnaQy with artists 
who have traditional skills) - 
a shallow fraud. 


count every significant plane- 
tary conjunction before it 
occurred. But then what influ- 
ence would the planets have 
on the day? In other words, if 
it works it doesn’t work, and if 
it doesn’t it does. 

One final puzzle. Bates 
describes himself as a former 
investment fund manager In 
the City. Why, then, does he 
not keep his insights to him- 
self and make himself a for- 
tune? Answer: one sore way to 
wax fat is to sell a million 
books abont slimming; one 
way to make money is to tell 
other people that only yon 
know how to do It. 

Perhaps the science of 
astrology will one day get its 
Isaac Newton, as Bates and 
Bowles hope (though they 
seem not to know that Newton 
was a keen astrologer). Until 
then, however, you would be 
best advised to look up your 
stockbroker, not Uranus. 


parlour that features in chap- 
ter one. Naipaul celebrates 

him 

$0 what is this? Not a novel. 
A Sequence. A meditation by a 
fine writer who no longer 
needs the formulas, no longer 
cares for the demands, and per 
haps the limitations, of tradi- 
tional fiction. 

STOCK EXCHANGE 
FOR RARE AND 
BIBLIOPHILE BOOKS 
Worldwide active boolaeardt 
service searches (and finds) for you 
antiquarian and bibliophile books 
from XV to XX century; any subject 
(also arts), all languages. Interested? 

- Just give us a call or fax/send 113 
your dcsiderau-lisL 
ABBS Paul Bust, P.O. Box 1 174 
RenggcrsuasK 86 . CH-803S Zurich 
(Switzerland) TeL 0041/1 4S2 65 S 2 , 
Fax 0041/1 482 65 82 


l 





COLLECTING 







■5*r&r* 

iW 



This painting by Jacques Joseph Tissot, 
“Chrysanthemums', is on offer at the Christopher Wood 
stand at the first summer international Fine Art Fab to be 
hehf at the Armory in New York from May 13-17. It is 
priced around £70Q£0Q. 

Wood is one of many British dealers among the 67 
exhBritors at the Fair, which is one of the most 
I n t er n at ional ever held. Also making the trip from London 
to take advantage of a more buoyant American market 
are, among others, Agnews, Browse & Darby, Cobiaghi, 
Richard Green, and Hartett Gooden & Fox. Among the 
highlights on show are a Renoir portrait of a young gal 
priced by Hammer Galleries at$3Jm. 


Celebrating 


J.R Morgan is proud to sponsor Willem de 
Kooning: Paintings. It’s the first major 
international exhibition devoted exclusively 
to the paintings of one of the most impor- 
tant figures in 20th-century art 


Organized by the National Gallery of Art, 
Washington, D.C., in association with the 
Tate Gallery, London, and The Metropolitan 
Museum of Art, New York, the exhibition 
features more than seventy works that trace 
de Kooning's painting mastery and artistic 


evolution over five decades. 


Willem de Kooning: Paintings opens at 
the National Gallery from May 8 through 
September 5, 1994. 



Collectors still play hard to get 

Good, omens in the saleroom have yet to progress into a firm revival, says Antony Thorncrofit 


M any antique 
dealers are 
starting to 
r es emble 
Pagliaccio, 
the clown. Time after time 
they pot on the motiey - beau- 
tifully displaying aH their won- 
derful goods and standing by 
them with their most welcom- 
ing mniiBB - only to he left 
drained and disappointed' at 
the end of the day. Despite 
many false dawns a consistent 
Improvement in the deman d 
for antiques refuses to emerge. 

You can see them this week- 
end at the Duke of York's 
Headquarters in London's 
King's Road. For the second 
successive year around a hun- 
dred top dealers, all members 
of the British Antique Dealers 
Association, have gathered 
fri gp*h«r in a plush marquee to 
show off antiques. It makes a 
splendid sight, but grandeur 
alone may not he enough to 
give trade the jolt it needs. 

The BADA Fair is pitched 
about half way between the 
burly body of Olympia, open- 
ing on Jane 2, with its 380 deal- 
ers making the exhibition cen- 
tre look like an exclusive soak, 
ar>A the glitz — 

and mega prices - of Gros- 
venor House, (opening June 9), 
and it will appeal to the solid 
British collector who Ukes to 
SB Ms home with fine things. 

The problem is that: such col- 
lectors have got out of the 
habit of baying. The travails of 
Lloyd’s play a part: in the hal- 
cyon past many Names used to 
invest their «wrmai pay outs in 
antiques. The trade is amazed 
that the crisis at Lloyd’s has 
not forced more antiques mi to 
the market - although this 
could happen when, the final 
reckoning arrives - but it has 
certainly shrivelled damand. 

Some sectors, like ftunitore, 
have held iq> well during the 
recession, and Witney 
Antiques, for one, reports that 
business this year to date is 40 
per cent higher than in 1993. 
But picture dealers in the main 
have seen too many revivals 
peter out after a couple of 
months to be really optimistic. 
According to a recent report by 
Butler Research, the number of 
antiip w dealers in tire UK has 
fallen by a quarter, to around 







Howe's Action of the 1st June 1794*: a coloured aquatint engraving from m painting by Tbomas tuny on Frank T. SabOTs staid at the BADA 


8,200, since the 1990 boom, 
while turnover has declined 
from approaching £3Ab in 1989 
to under £2b last year. 

Things should be getting bet- 
ter - the ren n mny looks prom- 
ising; house prices seen to be 
on. a gentle rise, which should 
stimulate home re-finulshings; 
and there have been some 
healthy stock exchange 
bonuses this year. Leslie 
Weller of Michael Norman 
Antiques is encouraged by the 
number of City traders who 
have started to spend between 
£5,000 and £10,000 a year on 
acquiring a Georgian table or a 
Regency desk as a tangible 
expression of their success. 
Many become serious collec- 
tors. 

But to date good omens have 
not progressed into a firm 



JP Morgan 


revivaL The antiques market 
was late Into the recession and 
it is slow to emerge from it 
The best consensus is that 
trade is not deteriorating and 
that most dealers are busier 
than a year ago. The impetus 
for the imp r o v ement is coming 
from the US, where business is 
much brisker. Many of the 
leading British dealers tradi- 
tionally sell extensively to 
Americans, and there are signs 
that more will be coming over 
this summer. 

At the BADA Fair the red 
spots for a safe were appearing 
this week with encouraging 
frequency at Spinks, WUham 
Drummond. Key Antiques, and 
elsewhere. John Bly sold a pair 
of fire grates, of 1880, for 
£18,500 and Derek Roberts 
three carriage clocks for 
£17,000. It could mean that, 
with prices so comparatively 
low, some pent up demand is 
finally bur s tin g through. 

This could be the ideal time 
to buy - the only reservation 
being that there is a real scar- 
city of top class antiques. 
Many of the finest items 
changed hands during the 
1980s boom, and the minority 
of new owners wishing to sell 
are waiting, where possible, for 
a price upturn. If anything of 
top quality does emerge, it 
oj pnnmiwifi a premium. 

Some seasoned dealers, like 
George Levy of Blainnans, 
think tha t there might have 
been a sea change in the 
antiques business, and that 
there will be no return to the 
unsustainable boom of the late 
1980s. He worries that the 
introduction of VAT on 
imported antiques from 
non-EC countries, even though 
it has been set initially at a 
low 2£ per cent in the UK, 
sounds the death knell of Lon- 
don’s pre-eminence as an inter- 
national art centre. Once 
accepted, VAT could rise 
remorselessly. 

Levy also thinks that the 
auction houses have succeeded 
in convincing a substantial 
number of new collectors that 
they can buy direct from them 
rather than relying on the 
advice of dealers. This is cer- 


tainly the case in such markets 
as 20th century British pic- 
tures and furniture. 

There is an obvious contrast 
between the current fortunes 
of the dealers and of the auc- 
tion. houses. In 1933 Sotheby's 
managed a 32 per cent rise in 
sales in sterling terms to 
£879m and Christie’s a 14 per 


Sotheby’s announced that it 
was offering in its July 6 sale 
of Old blasters a newly discov- 
ered early Velazquez, “The 
Immaculate Conception”, 
which could make £6m* Its 
Impressionist and Modem safe 
on June 28 is its best for years, 
with a £3m Manet, an early 
version of “Bar at the Fofies- 


This is an ideal time to buy — the 
only reservation being a scarcity of 
top quality antiques 


cent improvement to just 
under £73Gm. In contrast, only 
2 per cent of British dealers 

managed sales in excess of £lm 

last year, in 1991 3 per emit bit 
the Elm tnanover target. 

Not surprisingly, helped by 
their massive marketing 
teams, it is the anrtinn houses 
that grab the headlines and 
give a rosy glow to the state of 
the art trade. So Christie's in 
March had its best modem 
British safe for years, with 93 
per cent sold and records for 
such varied artists as Gilman 
(£110.500) and David Sheppard 
(£40,000) while last month Old 
Masters brought in £7-3m, (8L5 
per cent sold) with a Canaletto 
way above estimate at £2.2m 
(in contrast, one Mayfair Old 
Master dealer wait six months 
without a sale). An English 
furniture auction totalled 
£2.4m and was 88 per cent sold. 

Collectors have also main- 
tained their enthusiasm and 
this year to date Christie’s 
South Kensington has man- 
aged a record of DL520 for a 
drawing by Beatrix Potter; a 
record £560 for a 1790 Valen- 
tine card; a record B3JBS0 for 
original postcard artwork; and 
a record £12J00 far a Disney 
toy, a clockwork Mickey Mouse 
cranking an organ. In the US 
Sotheby's secured a record 
$63,000 for a baseball bat it 
had been used by Babe Ruth. 

Henry Wyndham, chairman 
of Sotheby's in London, repots 
that sales this year are 4 per 
cent up, and its good things 
are yet to come. This week 


Bergfire”, and a Monet “pop- 
lars", which, could also make 
£3m. The contemporary auc- 
tion is also top quality, with a 
major work by Lucian Freud. 

Obvionsly those important 
pictures have been lured out 
by the prospect, at last, of 
greater demand and higher 
prices. It could go wrong. 
Christie’s came unstuck in 
New York this week when, 


encouraged by last winter’s 
auction, it accepted higher 
reserves on contemporary pic- 
tures and was left with almost 
hair the lots unsold. Buyers are 
still selective; there are many 
fewer of them than five years 
ago (tire Japanese have almost 
entinriy disappeared); and they 
are unwilling to pay over the 
odds. They know they are in 
the driving seat 
The theory is that a success- 
fid New York black tie auction 
of Impressionist art will have a - 
knock on effect down as tar as 
the rag, tag and bobtail of Pas 
tobelio Road. If the rich fed? 
confident enough to boy 91$ 
again than, in time, so wither 
middling classes, wh&p : 
indude the true lovers of ffi gr 
Many dealers have become eo; 
impoverished waiting for fee' 
upturn that they have given qp * 
the business, or cut costs by 
trading from home. Those fiat 
have held on, or some of them, 
may soon experience the first 
stirrings of recovery. Or maybe 
not 



A bed 


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C onsider the bizarre 
career of Leslie Niel- 
sen. A man is born 
near the Arctic Circle. 
Descending to the US, 
he ascends the Broadway stage as a 
leading actor and soon after 
becomes a name in lights in Holly- 
wood (The Vagabond King, Forbid- 
den Planet). He spends 20 years 
drifting through lead roles in 
smallish movies and historic cam- 
eos in big ones; including the Cap* 
tain who capsized the Poseidon. ■ 
(Single Indelible line: “Ohh my 
GohbdT) Then he tarns to comedy, 
in Airplane and The Naked Gun, 
and starts to cany entire hit flhn« 
on Ms now 60-year-old back. 

It most be sorcery. Ever since 
America's centre of witchcraft 
moved from Salem, Massachusetts, 
to Hollywood, California, this bind 
of thing has gone on. But Nielsen 
embodies something else too: be is 
modern Hollywood looking back 
post-modernly on old Hollywood. 
The characters Nielsen plays for 
laughs are the same, to all pur- 
poses, as the ones he played 40 
years ago with a frown. Re-script 
his earnest spaceship captain in 
Forbidden Pilot for the new gobble- 
degoofc, and yon would have an 
advance simulacrum of the Air- 


How a closet comedian came out 

Nigel Andrews talks to Leslie Neilsen, ‘Naked Gun’ hero and cinema’s surest serial laughter-raiser 


plane doctor who said “Don’t call 
me Shirley" or of Lieutenant Flunk 
Dretrin in The Naked Gun. 

"They spotted me for what I was, 
a closet comedian," Nielsen rays of 
Die AirpkmejGun team, David and 

Jerry Zucker and Jim Abrahams. 

We were sitting in armchairs in his 
agent’s office in Hollywood. Or 
rather Nielsen was sitting on a 
whoopee cushion and I had been 
reacting politely to his re-nm of a 
rade-nolses routine he had once 
done on the Wogan show. 

As modern cinema’s surest serial 
laughter-raiser, this man now 
thinks be ought to be comic off 
screen. But it is Nielsen's non- 
comic persona that makes him 
fanny; that craggy face lined with 
wisdom and topped with Biblical- 
white hair; that bass voice made to 
boom orders or to purr fathomless 
authority. Set them up; burnish 
them to a glow; then have his char- 
acters drive into dustbins, mispro- 
nounce names or have "safe sex" 


with Priscilla Presley (Naked Gun 
Iffy) wrapped in a body-sized con- 
dom. 

Nielsen, though, thinks the 
incongruities were there from the 
beginning. "I’m bow-legged," he 
explains, recalling his first movie. 
That was The Vagabond King, a 
sort of mediaeval mnsicaL "They 
make armour for straight-legged 
people, so as soon as I pot it on, I 
went ‘YeeagghT They had to bend 
my leg-casings- Then l had to walk 
across the ballroom floor to con- 
front the Dauphin, and the director 
Michael Curtiz (of Casablanca), 
who was Hungarian, said ’Leslie, I 
vast yon should move quickly for 
my tempo.’ I said, Wes, Hr Curtiz’ 
and off I went Two years later I 
saw the film and watched this guy 
going across the floor looking like 
a giant egg-beater. If they’d thrown 
10,000 eggs in, I could've made 
breakfast for the army." 

1 had barely noticed bis bow legs, 
I said. But perhaps they are the 





NMsen: lampooning the 1950s 

concealed motley on a man born to 
move from Hamlet to down, even 
though it took three decades. Niel- 
sen himself cannot believe his 
career kismet - or that he now 
thrives in big-city Lotusland. 
"Where t was bom (Regina, Can- 


ada), you had different priorities. I 
had no choice to become streetwise, 
because we bad no streets. I knew 
about animals and wheat and mud 
and gumbo and 64 below zero. 
Coming from that to Los Angeles, l 
was someone with a monumental 
sense of not belonging. I was afraid 
fd be found out as tin talented and 
sent back to Canada.” 

Instead he rose to fame during 
the incredibly earnest 1950s. His 
air of avuncular command on 
screen - a sort of Eisenhower with 
hair - must have massaged a 
nationful of bruised postwar nerves 
and egos. Nielsen himself has a fas- 
cination with that time and what it 
was about. "Change. Americans 
were called on to respond to so 
many changes so rapidly, it’s a tes- 
timony to the vitality of the society 
itself that it has survived. 

“But changes make you vulnera- 
ble, and the values you’re talking 
about” - 1 had been going on about 
Doris Day and the squeaky-clean 


movement - "became very impor- 
tant to bold on to. Because you did 
feel there was something slipping 
away, and ‘squeaky clean* means 
yon think you know what you’re 
doing. It's a lack of reality about 
change; not seeing things as they 
really were; wanting to keep every- 
thing the same.” 

And 1950s styles and pseudo-cer- 
tainties, surely, are what movies 
like Airplane and The Naked Gun 
are now lampooning?: that daft 
sense of never had it so good, of 
"Someone is in charge', of keep the 
day feet bidden and our heroes will 
remain heroes. The affluent, over- 
confident 19 80s /early '90s saw a 
mirror image giggling back at them 
from the 1950s. Airplane's point of 
departure was an old Doris Day 
movie, in which the perfect virgin 
steered a troubled passenger plane 
to safety. And The Naked Gun 
series takes off from - and takes 
off - all those 1950s police shows 
like Dragnet and Highway Patrol 


WEEKEND FT XIX 


where civilisation was saved by 
cops with deep voice-overs. 

Nielsen himself received only one 
unalterable rule from Messrs 
zucker, Zucker and Abraham when 
he was thrown into Airplane. "They 
said, 'At so time behave in a way 
that tells the audience you’re try- 
ing to be funny,’" Nor was any 
improvising allowed on the script 
"Comedy is very honed. Hie small- 
est deviation can kill the joke." So 
he and fellow veterans Robert 
Stack and Lloyd Bridges donned 
the frowns and speak-your-weigbt 
voices and provided the most pow- 
erfully assured old-timers* reunion 
in all of movie comedy. 

Now Naked Cun 33Vi Is about to 
discharge itself on screen (UK, May 
19) and Leslie Nielsen has become a 
millionaire of stage, screen and 
cider commercials. He must be 
afraid that after decades of being 
typecast as a straight man, with no 
escape route into comedy, he is 
now typecast for life as a funny- 
man. 

"No. 1 am so grateful. My career 
has been such an incredible roll of 
the dice. I have no ambitions to 
play Hamlet.” Well, but now he 
mentions it - if Mel Gibson and 
Arnold (Last Action Nero) 
Schwarzenegger can do it . . . 






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An enoparingy frank analysis OT sterile bourgeois Wes Shirts Gish as Yvonne and Jude Law as bar son Mchae! hi Sean Mathias's now production for the National 'Theatre 

A bedroom farce turns tragic 


J ean Cocteau's play Les 
Parents terribles, as 
staged by Sean Mathias 
at the Lyttelton Theatre, 
represents an unusual genre: 
the farce with recriminations. 
Just as the play seems merrily 
set up as bedroom knockabout, 
with the requisite sexual con- 
fusions and infidelities, its 
humour is apt to freeze at the 
source, and a terrible reckon- 
ing of the human consequences 
be forced upon us. Never till 
the - actually tragic - end Is 
one sure how Ear this process 
is going to go. The balance of 
misery and witticism, truthful- 
ness and fun, is too fine for 
comfort 

Cocteau wrote the work 
(apparently in a mere eight 
days when under the influence 
of opium) in 1938, and It is not 
to be confused with his 1929 
novel, Les Enfants terribles. 
Both works were made into 
films, the latter by Jean-Pierre 
Melville in 1350, the former by 
Cocteau himself two years 
before. The premiere and sub- 


Paul Driver reviews Cocteau's ‘ Les Parents terribles 


sequent revival of the play of 
Les Parents in Paris were ban- 
ned as immoral, and it is not 
hard to see how Cocteau’s 
unsparingly frank analysis of 
hypocritical and emotionally 
sterile upper bourgeois life 
must have genuinely hit its 
target 

The play is built round a cen- 
tral, gallically precise opposi- 
tion of disorder and order, the 
mock-gypsy squalor of George 
and Yvonne’s apartment (for 
Acts 1 and 3) and the clinical 
austerity of the young woman 
Madeleine's (for Act 2). The 
long marriage of the first two 
has become loveless and suffo- 


cating. Yvonne is a semi-in- 
valid who spends all her time 
in a darkened room and lives 
only for her son Michael; 
George a foiled inventor whose 
emotional deprivation has led 
him into what proves a desper- 
ately tangled affair with Made- 
leine, with whom Michael foil 
in love passionately. 

For the ultimate benefit of 
everyone - a spinster aunt 
Leonie, who has sacrificed her 
life for George and Yvonne, 
completes the tight little cast 
of five - Michael needs to 
escape the messy gloom sym- 
bolised above all by his inces- 
tuously possessive mother, and 


break into space and light. The 
contrast between Stephen 
Brimson Lewis’s two sets - a 
crepuscular tumble of clothes 
and shoes and bits and pieces 
versus a modernist realm of 
sanitary whiteness with its 
giant spiral staircase - defines 
the dilemma perfectly. But 
there proves no way into a 
shining brave new world in 
this Pelleas et Melisande of the 
boulevards. 

Jeremy Sams has translated 
the play into a fluent modern 
English that does not court the 
dangers of topicality. Its slang 
(“peachy") is wisely already 
dated, its manipulation of 


cllchd ("strike while the iron is 
hot") carefully knowing. There 
is a useful snippet of Yeats 
(“rag and bone shop of the 
heart"); and true to Cocteau, 
everything that happens is 
“unbelievable". 

The cast is strong. Sheila 
Gish as Yvonne is as blanched 
and consumptive - actually 
diabetic - as any moribund 
operatic heroine (the problem 
for the other characters is that 
she insists on being one). Her 
instant overreaction to the 
sweet reasonableness of 
Michael's confession of love 
for Madeleine is gloriously 
funny. 


T erence Frisby wrote 
the memorably 
named play There's a 
Girl m My Soup. A 
slightly Noel Coward piece 
about a wine and food critic 
who expects to seduce every 
pretty girl in sight, it ran for 
over six years in the West end, 
starting in 1966. 

Fashions change, however. 
When I went to look it up, I 
was convinced that it must 
have been called There’s a 
Man in My Soup No-one treats 
philandering so lightly today. 

Frisby has changed too: out 
with the frivolous, In with the 
serious. The only common ele- 
ment between Soup and Rough 





THE. BRITISH 

ANTIQUE 

DEALERS' 

ASSOCIATION 

FAIR 


Drama in court 


Justice is that the central char- 
acter is a media man who also 
writes books. Bat they are 
writers of a very different 
kind. Robert Danvers in Soup 
is pompons and vain and 
would never have written 
about ethics. James Highwood 
in Rough Justice, represents - 
as his name suggests - the 
higher journalism. 

The trouble is that this para- 
digm of liberal virtue is up in 
court for having killed his 
brain damaged baby son. Or so 


it seems. But I shall not give 
away the plot, save to say that 
It you are of a sentimental 
frame of mind, you can proba- 
bly guess the outcome. 

The action takes place in the 
Old Bailey, mainly in court, 
sometimes in the defendant's 
cell and occasionally in a cor- 
ridor outside where deals 
between lawyers can be done. 
As in most court dramas, the 
characters tend to be made out 
of cardboard. Nevertheless, 
there is a Wimbledon-like fas- 


cination in watching the 
exchanges between the prose- 
cuting counsel Margaret 
Casely QC (Diana Quick) and 
the defendant played with 
some anguish by Martin Shaw. 
Alan Dobie's judge sits as the 
umpire in the middle. 

Issues abound: the case for 
so-called mercy killing and the 
distinction between murder 
and manslaughter. The law 
which comes in for most abuse 
(rightly in my view) is con- 
tempt of court it allows the 


v- - " 


. . i ■» : i 

J I f\- ■ 


MKMIW.BSOI' 

HR [TAIN'S L LADING ANT1QUK 
DK.\UJ0r .ISSOCMTION 
wii.i. m-: KMiturriNG 

THE DUKE 
OF YORK'S 

HEADQUARTERS 

CimUTCA. LONDON. SIV3 

4th - 10th 

MAY 1994 

WHRKOAYS I l.OO.u»-S.OO«l 
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£10-00 (SINCf.K) 
£15.00 (DOUBLE) 


T he question one 
always wants to ask 
at this opera is “How 
do the couples pair 
off at the end?”. Mozart and Da 
Ponte left the conclusion of 
Cosi/an tutte ambiguous and it 
seemed that productions have 
tried out every possible answer 
- until this one came along. 

The new management at 
English National Opera has 
already stated that it sees one 
of its prime duties as renewing 



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New ‘Cosi’ with a twist 


the standard repertoire. During 
the ld80s Mozart was kept out 
of the hands of ENO’s band of 
flre-raisers, who wanted to 
watch traditional stagings 
bum. Jonathan Miller and 
John Cox were more interested 
in period social values and left 
behind Mozart productions of a 
gentler nature. 

Nevertheless, a start has to 
be matte some timp and this 

new Cosi fan tutte is presum- 
ably the beginning of a 
renewal of the Mozart/Da 
Ponte trilogy. The opera is an 
open invitation to a producer. 
Its six characters live in a 
world of their own, untouched 
by any outside intervention as 
they play out all the roles in a 
patently unreal comedy. 
Almost any time or place will 
do. 

ENO’s producer, Nicolette 
M oinflr has chosen the 1950s. 
The villa bus a telephone, 
natty silk pyjamas are coming 


into fashion and the home-help 
finds an amusing new use for 
her vacuum cleaner, but all 
this is mere cosmetics: despite 
its trendy 1960s hairstyle, the 
opera has the same profile 
underneath. In Jacqueline 
Gunn’s semi-abstract set, a 
mixture of decaying neo- 
classical columns and fancy 
1950s iron work, the locale also 
remains Naples. 

Despina is very much a dark- 
haired Neapolitan, neatly 
played by Sally Harrison. Don 
Alfonso looks more a debonair 
man of culture from the North, 
in whose cravat and white 
trousers Richard Van Allan 
looks entirely at ease, even if 
he needs more voice these 
days. Neill Archer is a vocally 
rugged Ferrando; Christopher 
Booth-Jones pats the words 
across strongly as Guglifilmo. 
The two men play well 
together and their disguise as a 
gross pair of Texan cowboys 


works better than one feels it 
should. 

Like the production, the con- 
ductor Nicholas Kok gives the 
opera more pace than depth. 
One of the main pleasures is 
the musical care taken over 
the ensembles, not least the 
well-matched singing of the 
two ladies. Vivian Tierney’s 
soprano has a fine strength 
and poise, while Susan Bick- 
16/5 mezzo complements her 
with a darker bite to the tone. 
After the men have left for 
war, it is touching to see Flor- 
dffigi cuddling her teddy and 
Dorabella sniffling info her tis- 
sues - humour and sentiment 
on a knife-edge, as they always 
should be in this opera. 

And what of the twist at the 
end? As the two couples get 
ready for the wedding, it is 
Fiordlligi and Dorabella looba- 
likes under the brides’ veils 
who are masquerading this 
time. The real girls are making 


Off the Wall/ Antony Thorncroft 

Good times 
are coming 

A fter years spent rat- too good to be true. Surely 
tling the collection there must be a catch? 
tins, in less than * 

nine months the The City of London is finally 


Frances de la Tour as Leonie 
brings off the tricky feat of 
having to seem both embit- 
tered and kindly; and Alan 
Howard's muttering George is 
a brilliant study of frazzled and 
hopeless but nonetheless 
Machiavellian middle-aged dis- 
content. The role of Madeleine 
does not really allow Lynsey 
Baxter to offer much more 
than a sketch; but Jude Law’s 
Michael is a full-blooded (and 
in the bathroom scene full 
frontal), romping, almost flat- 
teningly extrovert portrayal. 
When the whole box set is 
recessed on its Lyttelton tracks 
at the end, however, messiness 
of a purely theatrical kind 
wins out 


judge and the prosecution 
ruthlessly to bully anyone con- 
ducting their own defence and 
smacks, in this play, of a law- 
yers’ cartel 

Rough Justice is not very 
profound. It conforms effec- 
tively to the middlebrow role 
of treating controversial sub- 
jects without much risk of 
offending anyone. Some of the 
characters, especially the wife, 
might be more developed. 
Still, the piece can hold an 
audience. I enjoyed it Direc- 
tion is by Robin HerfortL 

Malcolm Rutherford 

Apollo Theatre, (071) 494 5070 


a quick exit out of the back 
door, leaving the man to Learn 
their own lesson. After ail, if 
they think all women are the 
same, it does not matter which 
they marry; Cosi fan tutte 
Indeed \ 

Richard Fair man 


ST. JOSEPH’S 
HOSPICE 

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(Charity Rt£ No. 2)1323) 

Dear Anonymous Friends, 
You did not wish your gifts 
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relief you silently provide. 

We have honoured your 
trust, and always wtU. 

Sister Superior. 


A fter years spent rat- 
tling the collection 
tins, in less than 
nine months the 
arts, to say nothing of sport 
and charities, will be enjoying 
the extraordinary experience of 
being pelted with cash. 

By January the National Lot- 
tery should be on stream, with 
good causes receiving around a 
quarter of its takings, and 
I already the cautious estimates 
made by Peter Brooke, the her- 
itage secretary, are being 
increased. With over 20m peo- 
ple viewing the televised Satur- 
day night jackpot ceremonies, 
the thinking ^ tixat instead of 
the arts sharing £7Qm a year 
the sum could well be over 
£100m. Each month the lottery 
department at the Arts Council 
will be asking the council bo 
approve cheques totalling 
around £10m for dozens of arts 
organisations around the UK. 

Jeremy Newton, from East- 
ern Arts, has been chosen as 
lottery director and Peter Glim- 
mer is to be chairman of the 
National Lottery Advisory 
Board. Newton anticipates that 
the awards will foil into two 
categories: lots of small sums, 
from £1,000 to £50,000, going to 
help rebuild a village concert 
hall, or an inner city video 
workshop; and £50,000 to £10m 
donations, perhaps announced 
each quarter, for a regional 
theatre renovation or an opera 
house back stage re-vamp. 

The money must go on capi- 
tal projects, and the recipient 
arts organisation must rustle 
up some matching funding, 
perhaps only 25 per cent of the 
total if it is a priority project, 
but up to 75 per cent for a less 
essential facelift 
No one can doubt that the 
arts scene in the UK will be 
totally transformed. But who 
will actually fund the perfor- 
mances taking place in these 
smartened venues? The com- 
pany operating the lottery is 
likely to become very profit- 
able and will be under pressure 
to give back some of the excess 
by sponsoring arts events. If 
Richard Bransons 's syndicate 
wins, all the surplus will be 
reinvested. All in all it sounds 


too good to be true. Surely 
there must be a catch? 

★ 

The City of London is finally 
embracing the arts with enthu- 
siasm. Its £3Gm a year budget 
means that it is actually the 
third biggest patron of the arts 
in the UK (after the Arts Coun- 
cil and the BBC) but fears of 
crass comments by philistine 
members of the corporation 
has meant that it has played 
down its largesse in the past. 

Not any more. This week it 
announced that it was putting 
Up £950,000 over the next four 
years to give the annual City 
of London Festival much 
needed impact. Richard Hickox 
has been appointed artistic 
director and he starts next 
year with a major themed festi- 
val, “Purcell and his succes- 
sors". The City’s money must 
be matched by sponsors, but 
since sponsors have contrib- 
uted £lm between them over 
the past four rather tame 
years, this is not causing many 
sleepless nights. 

k 

David Puttnam is the natural 
successor to Lord Atten- 
borough as the advocate and 
conscience of the British film 
industry. Taking time off from 
pointing out to the government 
how even minimal support 
could work wonders for the 
bard pressed British film 
industry (Ireland is now awash 
with film crews alter introduc- 
ing a marginal tax incentive), 
Puttnam this week came out as 
a supporter of a common sense 
approach to censorship. He has 
expressed his approval of the 
new law on video nasties. 

But he was careful to distin- 
guish the evil of violence from 
less reprehensible sex and bad 
language. Indeed, he revealed, 
he had to tack on an extra 
scene for the American version 
of his first great success Chari- 
ots of Fire just to add in the 
word “shit”. Without it. the 
Dim would have qualified fra* a 
family audience certificate, and 
been characterised as a Disney 
type production. One swear 
word meant it needed parental 
guidance, making it a serious 
movie, and led to an Oscar. 


For the best tax advice 
in the country, talk 
Ay Jy to cunning 

Mr Todd. 


mm 



Bonhams Tax expert, Michael Todd, spent forty 
years with the Inland Revenue and is acknowledged to 
be amongst the country's leading authorities on 
capital taxation. Estate Duty, Capital Transfer Tax, 
Inheritance Tax and Capital Cains Tax arc all grist 
to his mill. Small wonder that Bonhams are 
increasingly consulted by professional advisors in 
search of up-to-the-minute expertise. 

Whether your estate is large or small, you will find 
that it pays to have expert advice in the field (and it 
may encourage you to know that Bonhams charges 
are still lower than those of most of their competitors). 

For further information, please call Michael Todd on 
07L-584 9161 or write to him at Bonhams, Montpelier 
Street, London SW7 1HH. 


£ O J J j-J A H 3 




XX WEEKEND FT 


FINANCIAL TIMES WEEKEND MAY 7/MAY 8 1994 


* 

\ 



Some wondered 
what all the fuss 
was about 


H 


ow disappoint- working far three years an put- 
log. After all the 
excited anticipa- 
tion comes the 
let-down, tbe 



false step at the top of the 
stair. For here, as curator of 
the exhibition, we were to have 
had Damien Hirst, at once the 
art world's vrunderfand and 
William Brown of the 1990s, 
making his choice of the art of 
his generation. Goodness, what 
fun, what shocking fun ft was 
bound to be, what blood and 
guts and fifes on the meat for 
the sceptical critic to get his 
teeth into. Well, we get Damien 
and his pals all right, in this 
exhibition curiously titled 
Some Went Mad, Some Ran 
Away, but far from being the 
Hash Street Kids or Outlaws of 
oar hopes, they seem tsar closer 
to Rupert Bear and friends. 

It is all so safe, so predict- 
able, so orthodox, so . . . how 
shall I put it? . . . so 
avant-garde. How we long for 
something as radical as a 
painting of a flower in a pot, 
perhaps, or a tree, or even the 
life model in the studio. We 
look out of the windows, to the 
trees of Kensington Gardens, 
caught in the son of the late 
afternoon, and the world and 
his significant partner jogging 
past. Interesting, visually 
interesting stuff, all of it. But, 
oh dear, such things are far too 
risky for the ambitious young: 
better far to leave them to the 
Royal Academy, as we shall 
see in a week or two. 

Hirst tons us he has been 


ting this show together, which 
is to say the work of 15 artists, 
including Mwnwif , amounting 
to something around three 
dozen exhibits. One of his own 
contributions, predictably 
enough, is yet another carcass 
suspended in a tank of formal- 
dehyde. this time that of a 
dead sheep, with tiny hubbies 
of air stfll trapped to the fleece 
and escaping quietly to the 
surface, petulant, like lemon- 


William Packer 
reviews 
Damien Hirst 


ade, or greenish champagna. 

Another of his works is a 
large white canvas on which 
are painted ten rows of nine 
large dots in several colours, or 
nit™ of ten, depending on how 
yon look at it Beside It hangs 
a large box by Robert Peacock 

sainted Half ow. half oranfte. 

and called, yes, “Grey and 
Orange Box 1994”. Hirst said of 
his fellow artists the other day, 
that ‘it’s just that they appeal 
to my sick taste ... I thought 
they had visual excitement” 

T dent think it's shocking 
exactly”, he went am “it’s just 
gat to get people Involved in 
ait The worst thing is if some- 
one just walks in and out with- 
out seeing any thing " And here 
we begin to get to the heart or, 
if yon like, the wool of ft. For 


this is not just a chance 
remark to a passing reporter, 
but to its Candide-hke inno- 
cence, a declaration of faith. 
Hirst, along with ao many of 
his art-student contemporaries, 
who took in the message, 
wide-eyed and open-mouthed 
at their mentors’ feet really 
does believe that “it's got to 
get people involved to art.” 

There we have it. Art is 
nothing to do with the artist 
simply getting his work right 
in its own terms, and then 
leaving us to come to terms 
with it as experience of our 
own. Not at alL His job Is to 
get us involved, to coerce us 
into attention. Anything less 
and his work, whatever its 
inherent qualities. Is a wasted 
effort Visual excitement, you 
see: “the worst thing is if some- 
one walks in and out without 
seeing anything.” The worst 
thing? The worst thing is only 
that the work should be no 
good. 

But there it is, and Hirst 
dutifully sets out to chivvy us 
to attention. He shows us the 
photographs of Hiroshi Sugi- 
moto, of tableaux of murderers 
in the Chamber of Honors at 
Madame Tussaud's. He leans 
Andreas Slomlnski’s bagman's 
bicycle against the wall, suit- 
ably over-hung with baskets, 
bags and panniers of all sorts. 
“This work is extremely frag- 
ile” says tbe caption. He hangs 
Michael Joaquin Grey’s orange 
fibreglass cast of Rodin’s Bal- 
zac from the ceiling, upside 
down. The life-size photo- 


graphs of tombstones by 
Sophie Calle are laid out upon 
the floor. A rubber shark by 
Ashley Bickerton, hung about 
with coconuts and plastic con- 
tainers, is suspended by the 
tail to mid-air. 

So tt goes on. Abigail Lane’s 
manikin down-and-out slumps 
on the floor. Michael Joo Blmg s 


expanding metal poles from 
wall to wall, wedging an eight- 
limbed plastic bear at one side, 
a rubber ball, a rubber testicle 
and a fychee nut at the other. 
Kiln Smith 's “Virgin Mary” is 
a standing wax figure, 
life-sized and flayed as though 
in anatomical demonstration. 
Such is the visual excitement 


that catches the breath and 
stops us leaving without seeing 
anything. And is it well done? 
Well, the photographs are pho- 
tographs, the bicycle a bicycle, 
the metal poles metal poles, 
the sheep a sheep. Miss Smith 
perhaps could have done with 
some old-fashioned lessons in 
modelling the figure from life. 


The last word, perhaps, 
should be left to the show's 
apologist, Richard Shone, in 
his catalogue essay. “An urge 
to bring order to chaos - toe 
search for meaning in the 
seemingly random flux of expe- 
rience - has existed as a funda- 
mental human motivation 
throughout history . . . Works 


of art are one of the major 
sources of data in the expla- 
nation of this universal need.” 


Same Went Mad. Some Ran 
Away - the Serpentine Gallery, 
Kensington Gardens WZ, until 
June S, then on to Helsinki, 
Hannover and Chicago: spon- 
sored by Haagen-Dazs. 


.i* 



. * 

CjJJJ 

i/ -T • 
*•:/ 



4*1 




•j- - 





Lisbon looks to its 
cultural laurels 


T he European cultural 
roundabout has 
almost finished its 
first spin. The hon- 
our of bring Europe’s cultural 
capital city is being rotated 
yeprbyyear among toe mem*- 
ber countries and there are 
only a couple left to go, 
although toe four new mem- 
bers who join in 1995 could 
prolong toe scheme. 

This year it is the turn of 
Lisbon. With the examples of 
the cities who have gone 
before, Lisbon has planned a 
wide-ranging programme of 
events. One of the ways of 
making sure that the benefits 
are not all spent in the course 
of one year is to put invest- 
ment into capital projects. 
Glasgow, for example, built 
the Royal Concert Hall and 
Lisbon has followed suit by 
refurbishing the Coliseu, 
which is used for toe city’s 
most prestigious concerts. 

Another is to delve bade into 
the city's cultural history. 
This Is to mine a rich veto in 
Lisbon. In a gallery at the 
National Museum of Archaeol- 
ogy, part of the mightily 
imposing Hyeronimito Monas- 
tery at Bel&n just outside cen- 
tral Lisbon, an exhibition 
called Subterranean Lisbon fol- 
lows the history of the various 
civilisations that have settled 
in the area up to the earth- 
quake and fire of 1755, which 
devastated so much of the city. 

As far as toe performing 
arts are concerned, a cultural 
capital only derives lasting 
benefit from its year in tbe 
spotlight if it can use some of 
the money being made avail- 
able to encourage home-grown 
performers. A number of 
smaller Portuguese groups 
have won a hand-out from Lis- 
bon 94 to put towards new 
work, which should raise the 
output of cultural activity 
even if it cannot be guaranteed 
to raise toe standard. 

Modern dance is apt to be a 

hit-or-miss affair. At toe Tea- 

tro Sao Luis two choreogra- 
phers - Francisco Camacho 
and Vera Mantero - presented 
a joint programme of new 
dance events early in April. 


The first involved three 
women with multi-faceted tal- 
ents. One ironed her dress 
while she was stfll wearing it. 
Another fondled a head of 
Medusa, The third poured 
water into her right ear frpm 
an oil-can. All three stood 
stock still for about half an 
hour. Maybe I am old-fash- 
ioned, but I always thought 
dance involved movement of 
some kind, even if it was only 
the occasional pirouette. The 
Edinburgh fringe beckons. 

A visit to toe opera is likely 


But Richard 
F airman feels 
that the real 
Portugal lurks 
elsewhere 


to be a safer bet Unlike Spain, 
which produces a stream of 
world-class opera singers, Por- 
tugal has not imposed Itself on 
the international operatic 
seme to an equivalent degree. 
Nevertheless, it does have the 
Teatro Sao Carlos, which is 
worth a visit on its own 
account In the 18th century 
Lisbon briefly enjoyed the 
most splendid opera-house in 
Europe, which opened in 
March 1775 and was destroyed 
by the earthquake a few 
months later. The Sao Carlos, 
inaugurated to 1793, replaced 
it, beautiful, simple but ele- 
gant Callus famously sang La 
trauiata there to the 1950s, but 
the challenge now Is to 
encourage more indigenous 
talent 

The new production of 
Beethoven’s Fidelia was sung 
mostly by visiting foreign 
singers, but produced and 
designed by a Portuguese 
team. By and large they did 
themselves credit According 
to tbe libretto, the opera is set 
next door hi Spain, as was cus- 
tomary at the time for any dif- 
ficult political subject but tew 
productions interest them- 
selves any more in Identifying 
a particular locale (unless it he 


Nazi Germany). 

Tbe producer Paulo Ferreira 
de Castro and designers Man - 
nri Grapa Dtas and Egas Jos6 
Vieira contented themselves 
with an unspecified modern 
location. Guards wielding 
rifles formed an ominous pres- 
ence. Searchlights periodically 
scanned the au dit orium. Most 
of the action was par for the 
course, but the producer has 
an eye for a coup de Mdtre. At 
the end, pages of Beethoven's 
score floated down from the 
ceiling, while the chorus 
appeared among the audience 
in boxes on the upper tiers - a 
splendid conclusion, as their 
singing raised the roof from 
there. 

There were two strong 
voices in the main roles: 
Nadine Secunde as Leonore 
and Jan Blinkhof as Florestan, 
John Macurdy was a laid-back 
Rocco. Elvira Ferreira (evi- 
dently a local favourite) and 
Gmmar Gndbj&rnsson were an 
acceptable MarzeUine and Jac- 
quino. Bodo Brinkmann’s 
blustering Pizarro was 
upstaged In his aria by the 
prison alsations, which let out 
a ferocious din as he strode to 
the front of toe stage to start 
singing - a hair-raising effect. 
The conductor Thomas Fulton 
was at his best In toe noise 
and energy of the final scene. 

Yet, after all this, the suspi- 
cion remains that real Portu- 
guese culture is lurking else- 
where. Lunch at a small 
restaurant off the beaten trade 
was interrupted by the arrival 
of a lottery-ticket salesman, 
who introduced bis wares In 
the traditional fashion - with 
a fade, to the untutored ear a 
cross between folk singing and 
a quiet yodeL “You cant learn 
fado”, our Portuguese guide 
observed, “you have to be born 
with it”. Perhaps that is the 
secret of an indigenous culture 
in any country. 


T he roving eye of a tal- 
ent scout could be 
discerned behind 
Wednesday's concert 
at the Barbican, writes Rich- 
ard Fahman. For Rossini’s Star 
bat Mater the plan was to 
bring together four leading 
young Mediterranean voices. 

As it happened, the final 
score was only three out of 
four. The intended tenor was 
replaced by Bruce Ford, these 
days a well established Rossini 
singer, but missing that open, 
sunny ring that is second 
nature to an Italianate voice. 

Both the soprano and the 
bass were Italian. Barbara Frit- 
toli applied her firm, lyrical 
soprano conscientiously to the 
work’s most demanding solo 
part hi the “Tnflammatus” she 
was outgunned towards the 
end, where Rossini asks his 
soprano to sally forth with top 
C’s blazing. Simone Alberghmi. 
still only 20, was tbe somewhat 
dour bass, but his voice rises 
to a brighter, well-placed top. 

One sensed that to this com- 
pany the Greek mezzo Mar- 
kpria Hatzlapo was k e en to be 
a good colleague, keeping her 
voice down and holding in 
check a personality several 
sizes larger. Once let loose to 
her own solo, Hafcriano gave 
notice that she is no mere 
promise for the future, but a 
ringer who has arrived. 

The Brighton Festival Cho- 
rus was well rehearsed; the 
Stabat Mater gives all the per- 
formers an equal chance and 
Carlo Rizzi conducted the 
Royal Philharmonic Orchestra 
to a Clean Italianate style. 

* 

Simon Keenlyside is already a 
noted talent on the operatic 
stage, writes John Allison, but 
his Wigmore Hall recital on 
Tuesday brought reminder 
that he Is equally at home to 
Ueder. He is a communicative, 
physical performer, bringing 
each song to vivid life. He pro- 
jects a firm line, has an impres- 
sive control of dynamics, and 
commands plenty of tone 
throughout his range up to a 
tenorial top, all combined in an 
intelligent, muwiriqniy way. 

The first half, devoted 
mostly to Poulenc, opened with 
a group of four Debussy songs. 



Sunday 15 May at 7.30pm 

Michael THson Thomas 

conducts 

MAHLER : SYMPHONY N0.6 

London Symphony Orchestra 

Tickets £6, £0.50. £13.50, £15.50. £21. £20 

Barbican Hall 071-638 8891 |V-8 daily) 


ENGLISH HAYDN d ^ 

FESTIVAL Bridgnorth nV 

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Hwydn Festival Orchestra Conductor: Howard Snell 
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Albcmi Strings Quartet 

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Postal booking opens 9 May 

Telephone booking and personal 
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Young 
singers 
and a 
pianist 

including a mellifluous 
account of the composer’s first 
published work, “Nurt d’6- 
tofies’’. "Mandolin”, a Verlaine 
setting, was hazy and evoca- 
tive. A hint of strain made 
itself felt in some of the Poul- 
enc, but Keenlyside captured 
the mood of each song. We 
heard 18, perhaps too many: 
each was effective, but In dan- 
ger of cancelling the previous 
one out But the vigour of "La 
belle jeunesse” from the hedo- 
nistic Chansons GaUlardes, and 
the deep emotions of “C" 
remain firmly in the memory. 

Throughout the evening Mal- 
colm Martin eau was an impres- 
sive accompanist, nowhere 
more than 1 q Schumann’s 
DictUeriiebe, to which he was 
an equal partner with Keenly*- 
ide in a performance of pro- 
found insight 

* 

Young pianist Mark Anderson 
- weU. he must be 30 now: he 
was one of the oldest competi- 
tors at Leeds last September - 
appeared at the Wigmore Hall 
on Wednesday, writes David 
Murray. 

The BBC-2 viewers who 
judged this American pianist’s 
performance of the Brahms D 
minor Concerto the best in the 


Leeds final round would also 
have admired his semi-final 
performance of Brahms Third 
Sonata. Here it was slightly 
less brash but even mare gor- 
geously laid out Anderson has 
a wonderful gift for achieving 
great warmth in the whole pia- 
no-sound whilst keeping every 
strand dear and luminous. He 
boasts not only toe requisite 
full-scale grasp of the music, 
but the immaculate pedal-tech- 
nique needed to realise it (a 
rare commodity among British 
pianists, unfortunately). 

Add to those his vital rhyth- 
mic instinct and his old-fash- 
ioned respect for structure, and 
you can imagine why I agreed 
with toe BBC audience that he 
ought to have won the Leeds 
competition. He was quite 
right to indude again Bartfik's 
seminal but under-performed 
Improvisations (1920), because 
Anderson plays this superbly 
original piano-music more or 
less to perfection. 

Rightly, toe most prominent 
virtues to his BartOk were his 
flexible, sprung-steel rhythms 
and his heartfelt rubato. But a 
detached ear might also have 
noted his extreme finesse with 
txmecolour; his Wigmore pro- 
gramme gave less scope to that 
than his Leeds recital, which 
included some exquisitely 
imagined Debussy. 

The major exhibit should 
have been his account of 
Beethoven's late Sonata in A, 
op. 101, but Richard Goode’B 
performance five weeks ago 
still keeps singing in my head. 
But the comparison was posi- 
tive enough: like Goode, 
Anderson plays with unaggres- 
sive flair, bat with great lyrical 
intelligence. He is a musician 
eminently worth hearing. 




SOUTH BANK 

Te'/CC 07i -92U 35300 loam -9pm C v ;’i:y 


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13 May Qgar Intro ft AHsgro lor Strings Grainger County Gartens Early One 
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10 May 
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Programme Includes Beethoven Sonata In E. Op. 109; Brahma 7 
Fantasies, Op.1 16; 3 intermezzi, Op.1 17 

retry Henlaor Artsa M ana ya ne ntTSBC 


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12 May 
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ROYAL FESTIVAL HALL TOMORROW at 730 pm 

The London International Orchestral Season 


RUSSIAN NATIONAL ORCHESTRA 

MIKHAIL P1ETNHV Cooduacn/Soloto: 

Tchaikovsky Overture, Romeo and Juliet 
Weber KonzertstQck Op.79 
Tchaikovsky Symphony No.4 

Ticket * £1 - £30 B<nc Office/CC 07 1 -928 8800 
Presaged by Vm Watsnn Managcmcat and Tbe Sv^ Cmw 



American strings 


A visit to Loudon by 
the Emerson String 
Quartet is always 
eagerly awaited, 
and the group’s concert at the 
Wigmore Hall on. Thursday ful- 
filled expectations. As one of 
the foremost rfiamhnr ensem- 
bles around today, the Emer- 
sons provide a special kind of 
musical nourishment all too 
rare. 

The American group, 
founded in 1976, has a reputa- 
tion both for Its performances 
of standard works and for 
expanding the repertory with 
significant commissions. Each 
work on Thursday’s weighty 
programme - early Ives, late 
Beethoven and Shostakovich - 
revealed in turn another of the 
group’s strengths. 

It was the sheer beauty of 
the group’s sound that charac- 
terised its playing of Ives’s 
First Quartet, “A Revival Ser- 
vice'’. Ives drew inspiration for 
the piece from his work as a 
church organist Hymns spiced 
up beyond the approval of the 
ladies’ committee found their 


way into the quartet, but same 
of the textures are recognisa- 
bly organ-like, and the Enter 
sons filled the hall with the 
deep sonorities. 

All the textures in Shost- 
akovich's Quartet No. 14 were 
carefully balanced too. The 
Emersons played with 
restraint in the mournful Ada- 
gio and radiant conclusion, and 
made light of the virtuosity the 
composer demands elsewhere 
Intimation in the high octaves 
of toe first was impeccable. 

The group's serious -minded- 
ness was epitomised ln its 
approach to the Beethoven, No. 
15 in A minor. Op. 132, in 
which the players sustained 
the long musical arguments, 
welding the juxtaposed blocks 
of material together impres- 
sively, never loosing sight <rf 
the work’s symmetry. The cen- 
tral Setliger Dankgesang 
unfolded in all its rapt mys- 
tery, leaving one to awe both 
of die music and tbe musician- 
ship of toe Emersons. 



•Cj •. 





John Allison 




The Official London Theatre Guide 


AOPJTCLStrmad. Td W71 NMND . 

Snmact Boulevard 

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\ FINANCIAL TIMES WEEKEND MAY 7/MAY S 1994 


WEEKEND FT XXI 


TELEVISION 


SATURDAY 


CHESS 


BBC1 


I. las Nows. 730 Fefa me Cat 745 Joe M. 210 
>*» Legend of Prince Vacant 235 Bound U» 
r latet. 200 PamM 9. 1130 Hbn Astarfe in BriWa 


Weather. 

Grandst an d, introduced by Steve 
Ffidar. 12.20 Footbafl Focus. A pre- 
view erf the final weekend of the Pre- 
miership season. 1,00 News, 1.05 
Athletics: A report on the 40th armi- 
vereary of the First sub four-minuta 
mte. 1.15'lhne-Oey Eventing: The 
cross-country stage from Brafrnln- 

too. 1-25 Racing from Ungftefd Parte 
The 1 30 Chaitwe# FIBtes Stakes. 
1.35 Three-Day Eventing, 1J5S RBC- 
Ino: The 2.00 Champagne Ruinart 
Oete Trial Stakes. 2.05 Three-Oay 
Eventing. 225 Racing: The 2-30 Jar- 
dine tnsuranoe Brokers Ltd Derby 
Trial Stakes- 235 Rugby Union: 

Bath v Leicester in the Pffldngton 
Cup Final at Twickenham. 4JS Final 
Score. Timas may vary. 

W ears. 

Regional News and Sport 
Stay Toonedl Tony Robinson intro- 
duces cartoon favourites. 

AnH Ffac tt- Jimmy Savfle makes 
dreams come true tor more viewers, 
including a fight-buB enthusiast 
keen to watch the prepaations for 
Blackpool Bumtnatians, and two 
ballroom dancing fans who get to 
practise with the Pange Latin For- 
mation Team.' 

The Paul Daniels Magic Show. 
Mystery and Busion from British 
magician Stephan Tucker, and pop- 
ular Canadian contortionists Cirque 
du Sated. 

The Now Adventures of Super- 
man. Lois and Clark suspect a rival 
newspaper publisher fat deGberateiy 
causing tragedies to create headline 
stories. 

Fine Buddy's Song. Premiere. A 
teenage wnJd-be rock star tries to 
live down the wayward antics of his 
tether, an ex-prisoner. Musical 
drama, starring Chaaney Htnvkas 
and Roger Dattrey (I960). 

That's Life! 

News and Sport; Weather. 

Match of the Day. Two of today's 
top games on the final weekend of 
the FA Premiership season. 

Fhms Fast-Walking. Premiera. 
Comedy drama, starring James 
Woods as a prison warder who 
becomes involved in a conspiracy to 
murder a black Inmate. WKh Kay 
Lenz (1981). 

Weather. 

Close. 


11.45 


• 1J96 

- 1.40 


BBC2 


630 Open IWverahy. 12.16 pm Fftn: So Long at 

ttoter. 

1.40 Time with Betjeman. First of seven 
p ro gamnvaa celebrating poet Sir 
John Betjeman. 

2 J 0 Scrutiny. Documentary on the UK's 
parliamentary committees. 

3.00 F*rrc Doctor in the House. Comedy 
following the amorous adventures of 
' a group trf metical students. Dbk 
Sogarte and Kenneth More star 
(1954). 

4JBO Gotf and Badminton Horse Trials. 
Golf: International Open. Dougle 
Donnefly introduces live coverage of 
the dosing stages of the third round 
from St Menton. Equestrianism: 
Action from today's cross-country 
section Commentary by Michael 
Tucker, Loma Clarke and Lucinda 
Green 

7 AO News and Sport; Weather. 

7.15 Johnnefs. Tribute to cricket com- 
mentator Brian Johnston, who (tied 
to January attar a 40-year career as 
one of Britain's best-loved broad- 
casters. The programme faattxss a 
selection of his most memorable 
moments at the microphone, and 
todudes personal recoBoctions by 
Geoff Boycott, David Gowbt and 
Fred Trueman UK prime minister 
John Major alao pays tribute to the 
man long regarded as the voice ert 
Engtoh cricket 

7 AS Arena. Ffim exploring the fives of 
the Brazilian Bahia people, revesting 
the details of rarsiy-seen rellgkxn 
ceremonies. Jana Botova Investi- 
gates the Angolan martial art known 
as Capoeira, end Jains local reveAers 
for their annual carrwaL She also 
meets a cMdren's percussion 
orchestra who play on recyded 
everyday objects, and views perfor- 
mances by up-and-coming stiffs, 
including Margarath Menazes and 
Carfinhoe Brawn, and two of Bahia's 
bfgflMt Afro pareuMlon group* lie 
A/ye and Otodom. 

9.35 Heme I Got News ter You. 

10.05 SefnfekL 

10^0 Later with Jools Hofignd. 

11.25 FBm: Ati the Presidents Man. 

Fact-based pofiticai thrPor, starring 
Robert Bedford and Dustin Hoffman 
as tile Investigative JaumaRsts who 
exposed the Watergate cover-up 
(1976). 

1 AB Close. 


LWT 


500 GMTV. 326 Gimme Sl 11 JO The (TV Chari 
Show. 1230 pm Opening Shot 

1.00 rro Nows; Weather. 

1- 05 London Today; Weather. 

1.10 Movies, Games and Videos. 

Reviews of My Father the Hero, 
starring Gerard Depardieu, and 
What's Eating Gfcert Grape?, feat- 
uring Johnny Depp in the title rote. 

1.40 NBA Baskatbao. Alton Byrd intro- 
duces the game of the week. 

2L40 Cartoon Time. 

249 FRnc White Witch Doctor. A nurse 
trios to bring tha benefits of modem 
madkrine to the Congo. African 
adventure, s t a rri n g Susan Hayward 
and Robert MHchum (1 85?). 

4X0 fTN News and Results; Weather. 

5.00 London Today; Weather. 

840 BUBsaye. An Bowen fires tha ques- 
tions and Raymond Bamevekf does 
Ms bit for charity In another edition 
at the darts- based quiz. 

ELM Baywatch. Stephanie joins the 

Coast Guard In an attempt to crack 
a dangerous arms smuggling ring 
operating along the shoreline. 

MO Stars in Thofr Eyes SpeciaL The 
winners aid runnera-up from previ- 
ous series appear to a musical 
extravaganza to kick off this yoafo 
competition. Presented by Matthew 
Kefiy. 

7 AO The Brim Conley Show. New 
aeries. Comedy and music show- 
case with award-winning funnyman 
Brian Conley and his guests East 
17. 

5.15 You’ve Been Framed! 

BM TIN News; Weather. 

BJI 0 London W e a ther . 

500 Taggart The Glaswegian detective's 
patience and perceptions are tested 
to the Omit when he and Jardtoe 
Investigate two suspicious deaths - 
which is the suicide and which the 
murder? Feature-length episode of 
tin popular detective drama, starring 
Mark McManus, Janies Macpher- 
son, Blythe Duff, Jason Isaacs. Tam 
Dean Bum end MeeraSyaL 
11.35 Secret of the Sahara. TWo-part 
drama. A renowned American 
archaeologist finds a manuscript 
proving the existence of the legend- 
ary Talking Mountain. Tefiy Savaias 
stars; fTN New* Headlines. 

2- 40 The Big E; ITN News HeadHnos. 

3AS American Gladiators. 

4w20 BPM. 

5.00 Hot Wheels. 


CHANNEL4 


540 4-Tei on View. 230 Early Mowing. M30 
Trans World sprat. 1 UD 0 Oesetta Footed Itefia. 
1200 sign Ort Newswatch. 1230 pm Bonteay 
Chat 

140 Him: The Overiandars. Drama 
about an Australian rancher who 
embarfra on a cattle drive to save 
his herd from potential danger dur- 
ing the second world war. Chips 
Rafferty stare (1945). 

£40 nfcn: Destination Gobi American 
mffltary personnel Join Mongol 
trfoesmen to fight the Japanese. 
Wartime adventure, starring Richard 
Widmark and Don Taylor (1953). 

4.10 Russian Puppets. Double bill of ani- 
mations by Vadim Kurchewsky and 
Mlkhafi Kamenetsky. 

4*35 New Kfds on the Box. Documen- 
tary following the Lloyds Bank Film 
Challenge competition tor young 
witters, introducing a season of 19ms 
by the winners. 

OdDS Brookatde. 

(L30 Right to Reply SpeciaL Viewers 
and provammo-makere debate 
whether extrema right-wing groups 
should be atiowed to dbcuss their 
policies on British TV. 

7JDO A Week in PoBties. Special edition 
examining the future of local democ- 
racy, asWng whether counci e l ectio n 
rearfts Terre any real effect on vot- 
ers’ fives; News Summary. 

7 AS Rreurorics. Dramatic account of tin 
origins of democracy, performed by 
travelling theatre youp Bread and 
Roses to Lewes, Sussex, last year. 
FOcustog on the Engfiah Crvfl War, 
the American War erf independence 
and the French Revolution, the pfay 
explores how ideals of political free- 
dom have developed. With Larry 
Lamb, MSes Anderson, Oliver Cotton 
and Leonie MBlnger. 

OjOO NYPD Blue. Dot Sharon LaSale 
considers quitting the force, and the 
tether of a mattered 13-year -old 
boy takes the law into his own 
hands. 

10.00 Dorrt Forget Your Toottibiush. 
Fflghflghta from tho recent series, 
hasted by Chris Evans. 

11.05 Fftrs Danton. Gerard Depardieu 

plays the charismatic (desist of the 
French Revolution who Ms foul of 
his icy rival Robespierre. Historical 
drama, with Wojctech Pszontek 
(1962). 

130 Late Licence. 

1.40 Herman's Head. 

2.10 Naked City. 

258 Beavfs and Butt Ho ad. 

338 True or False. 

3A5 Etectric Ballroom. 

4A5 dose. 


REGIONS 


rrv reckons as London exccpt at the 

POLLOWWQ TW 8 E 8 S- 

1230 Movies, Games and Videos. 146 Angfia 
News. 1.10 Cartoon Time. iJto Tha Munsters 
Today. 145 World Cup HaS of Fan* 2.15 svrise 
Family Robinson. (1960) 530 Ancfia News and 
Sport &06 Angia Weather. 1138 Monte Wlabh. 
(1S70) 

BORDER 

1230 COPS- 135 Banter News. 1-40 Ste tils 
World. 210 The Cokxsaus at Roms. (1964) 155 
Superetera at WreetitnQ. SJQQ Banter Nwa end 
Warner 5.10 Cartoon Time. 1 US Monte VWWt 
(1970) 

CENTRAL; 

1230 America's Top m iJ» Central News 1.10 
The Mmstera Today. 1.40 Movies. Oames and 
Videos. 208 wcw Worldwida Wrestling. 245 Tin 
Fail Guy. &A0 MaeGyvor. 4JSa Control Nows 8.10 
Cartoon Time. B4S Locte WasOwr. 1 US The Park 
la Mhs (TVM 1985) 

flIMW’IANs 

1230 Spore. 14)8 Grampian HeacMnes 1.10 Tete- 
flas. 240 Speaking OV Lanpags. 210 Blonde 
Hite the Jackpot. (1946) 225 Soil the World. 3J55 
WCW WWkteMe Wresffing. EdOO Grampian Hoad- 
Inea 546 Grampian News Review. &55 Grampian 
VMHW. 1136 Monte Wtfsh. H970) 
gmuUJDyL: 

1230 COPS. 146 Grenada Nows 1.40 Safl the 
world. 210 Tha Colossus Of Romo. (1964) 336 
Superstars at WreBtSng. us Grenada News B4» 
Bugs Bunny. 1135 Monte Walsh. (1970) 

HK 

1230 World Cup Hal of Fame. 14H HTV News. 
1.10 Sol thB World 1.40 Colour Scheme. (1978) 
3-18 Movies. Games end VUeoe. 248 The A-Team. 
E4» HTV News and Sport S .10 Cartoon Time. &55 
HTV Wtafter. 1136 Monte Walsh. (1970) 
MBtSMAlt: 

1230 Hflkfi. 146 Meridan News. 1.10 Sad the 
World. 240 Best of Britan Motorepoit. 3.10 The 
A-Team. 4.10 The Muistere Today. 64)0 MsrMan 
News. 5l10 Cartoon Tima, 1136 One to One. 

SCOTTISH: 

1230 Extra Tima 1.05 Scotland Today. 1.10 
Speateng Our Language. 1.40 Telefioa 210 The 
Lady From Yesterday. [TVM 198S) 330 The 
ArTeem. 84» Scotland Today 5.10 Roger RamleL 
836 Scottish Weather. 1136 fEL 
TYNETEOc 

1230 Movies. Games and Vkteoe. 146 Tyne Tees 
News. 1.10 The Munahn Today. 135 Zona 246 
WhRe Witch Doctor. (1963) 348 Knight Rkter. 446 
Tyne Tees Saturday 


an sir 


If — 



SUNDAY 



l Xmm 

BBC1 | 

M BBC2 

H LWT j 

| CHANNEL4 | 

| REGIONS | 



7 30 Johnson and Frimte. 7M Heydays. 84)0 
Blood ra)d Honey. 8.15 Breakfast with Frost 9.15 
Haart and SouL 1030 See Head 1030 Dvted the 
9 to 5. 114)0 Second Chance. 1130 Tates tan the 
Mop Room. 

12.00 CountiyFVe. 

1225 Weather for tha WOok Ahead. 
1230 News. 

12^5 On the Record 

1.30 EastSndsrs. 

2J25 The FOntstones. 

230 Rkn: The Greatest Show on Earth. 
Epic drama. Stantog Janwa Stewart 
and Charlton Heston (1852). 

5425 Second Chance. New series. Pro- 
files of people who have taken aduR 
teaming courses to gain new skills 
or quaflfleatfons. 

5.30 Masterchef. Jane Asher and Ken 
Horn judge the culinary efforts of 
contestants from Cfitharoe. PouHon- 
le-Fykte and Lowton. 

8-05 News. 

838 Songs of Probe. Pam Rhodes joins 
the congregation at Wymondham 
Abbey to Norfote to celebrate the We 
of religious hermit Julan of Norwich. 

74W Last of the Summer Wine. Feature- 
length episode. Compo, Clegg and 
Foggy send an a*ng friend on a teat 
fling with hb beloved, which proves 
final to more ways than expected. 

a*0 Pie to the Sky. 

8.20 News and Weather. 

9.38 Fanly. New series. Booker Prize- 
winner Roddy Doyle's emotkwid 
drama charting the day-to-day 
dilemmas of a Dublin family on the 
•' brink of coflapse. The first episode 
■_ focuses on the strain caused by 
father Charfo's violent behaviour and 
. small-time burglaries. Starring Sean 
MoGMey, Got Ryan, Neffi Conroy 
and Bany Ward. 

10.28 Mastermind. 

10.55 Everyman. In the first erf two 

programmes Investigating marriage 
and dvorce, eight people who have 
been married 34 times between 
them discuss the pitfalls of lying the 
knot over and over again. 

11.35 Fflrn: The Lata Show. A detective 
Investigates a connection between 
his ex -partner's murder and the 
abduction of an eccentric woman's 
cat. Comedy thriler, with Art Carney 
and Uty Tomlin (1877). 

14)5 Weather. 

1.10 Close. 


S. 1 B Open Unhereky. 8.10 Rddtey Foodte Btot 

935 Sknon and the Witch. 930 HeveTs American 

Tates. 1046 The Movie Gome. 1030 Grave HIS. 

1035 ROT. 1130ALBteiy Lad. 1146 Tha OZone. 

1200 Around Westminster. 

12410 Sunday Grandstand. Introduced by 
Sue Bffftar. 12.35 Motor Sport The 
British Touring Car Championship. 

1 jOO Basketbaft The British League 
Play-Off HnaL 1.40 Gott Interna- 
tional Open. 2.40 Three-Day Event- 
ing; The Badminton Horse Trials. 

44U Golf. Times may vary. Subse- 
quent prog ram me s may ran late. 

6.10 The Natwof World. Documentary 
about the ravens inhabiting the 
mountainous region of Snowdonia 
National Parkin Wales. 

74)0 The Money Prugr au sim. The suc- 
cess of Direct Une motor Insurance, 
whose innovative approach has 
made its founder Peter Wood a mti- 
ti-mfficnafre. 

740 La IXfforenceL Comedian Marie 
Thomas searches vainly for a vege- 
tarian meailn Paris, and JownaUst 
Lowri Turner checks out expensive 
beauty treatments. 

830 John Sessions' Lfcaty Stories. New 
series. Offoeat tales, beginning wKh 
the story of a pompous actor whose 
career prospects take a humfflating 
turn as oW age approaches. 

830 Watergate. New .series. In 1972 ixr- 
glars employed by president Richard 
Nixon’s re-election committee were 
arrested wh 8 e breaking into the 
Democrats' headquarters to Wash- 
ington's Watergate buldtog. The 
subsequent official investigation 
exposed a series of fflegai activities 
on the part of White House staff and 
forced the president to resign to dis- 
grace. This documentary, drawing 
on previously unpubfished evidence 
and exclusive interviews, reveals the 
extent of Ninon's Involvement to one 
of the biggest scandals to US pofiti- 
cai history. 

840 Time Enough! Or Not Enough 

Time! Poet Sir John Betjeman’s last 
TV Interview. 

938 Late Flow e ring Lust Musical com- 
edy drama Inspired by Sir John 
Betjeman's poems, storing Nigel 
Hawthorne as an elderiy party guest 
reflecting on hta lost youtn. 

1030 Rmwotte. Robert McKee 

introduces tonight's French offering. 

114M F 8 m Wages of Fear. Truck drivers 
transport explosives across a moun- 
tain range to hetp extinguish a South 
American ofl-wefi Bra. Classic action 
thriller, starring Yves Montand 
(1853). (Engfeh subtitles). 

1425 Close. 


64)0 GMTV. 935 The Utrtest Hobo. 1015 Link. 

1030 Sunday Morning with Seconfce. 114)0 Morn- 
ing Worship. 1230 Sutday Morning with Ssoombe. 

1230 pm Crosstab: London Weather. 

1.00 fTN News; Weather. 

1.10 The Judy Hnnlgan Debate. New 
series. Discussion of the day's main 
moral and political issues. 

2.00 Hannah USA. The daughter of the 
Dales is taken on a tour of the Whits 
House in Washington. 

2-30 The Sunday Match. Crystal Palace 
v Watford Uva coverage from Sal- 

fmifij p^ic. 

54M Cotaiby Ways. Portrait of the 
Rather Levels on the borders of 
Kent and Sussex. 

S4M The London Programme- Trevor 
PhUHps examines BJegaf evictions 
and harassment of tenants. 

0.00 Umdon Tonight; Weather. 

830 fTN News; Weather. 

630 Through the Keyhole. Carol Vorder- 
man, Chris Tarrant and Amfraw Nail 
guess the celebrity owners of 
houses. Chaired by Sir Dsvid Frost 

7.00 Surpiteal Surprise! 

04)0 The Dweiftig Place- New series. 
Three-part drama about a teenage 
gift's fight to keep her five young 
brothers and sisters from the work- 
house. Based on Catherine Cook- 
son’s novel, starring Tracy Whitwel 
and Ray Stevenson. 

9.00 The Knock. An armed robbery lead) 
Andreotti to uncover a drug traffick- 
ing ring, and Diane cfosss In on the 
endangered animal smugglers- Caro- 
line Lae Johnson stars. 

104)0 Spitting Image. 

10.30 ITN News; Weather. 

10-40 London Weather. 

10.45 The Big Fight SpeciaL Highlights of 
Frankie Randall v JuHo Cesar 
Chavez, Simon Brown v Terry Nor- 
ris, and Azumah Nelson v James 
Ldja. Triple tad of WBC world title 
rematches from Las Vegas. 

1148 The Last Whale. Documentary on 
the pfight of the world's whales, as 
the International Whaling Commis- 
sion prepares to deckfe whether 
commercial daughter should be 
resumed In the southern herd- 


12415 SaU the World. 

14» Get Stuffed; ITN News Headknea. 

1.10 Cue the Music. 

2.10 FSm: The Jokers. Two upper-class 
brothers carry out the perfect crime 
by borrowing and raptadng the 
crown Jewels. Starring Oliver Reed 
and Mchaal Crawford (1996). 

aJBB Get Stuffed; ITN News Headlines. 

4.00 Snooker. The European League. 

3.00 Dining in France. 


RADIO 


846 Eariy Morning. 9.45 The Odyssey. 10.15 
Saved by the Bek. 1046 RawHde. 1146 UWe 
House on the Profile. 12^46 pm Surf Potatoes. 

1.15 Fins Kiss Them For Me. A Navy 
pilot fafla for an todustriaUsfs girl- 
friend whie on leave to San Fran- 
cisco. Wartime comedy, starring 
Cary Grant and Jayne Mansfield 
(1957). 

34)5 Indoor Tennis: The National 

L ea g u e . New aeries. Tha Premier 
Trophy from- the Royal Berkshire 
Club, Bracknell. 

34)5 Rkn: Went the Day Weil? German 
paratroopers tfsgiikaxj as British 
sokfiere Infiltrate an English village. 
WSr thrifier, starring Leslie Banks 
(1942); News. 

5-20 Feotiooee. Investigative joumafist 
Paul Foot, Joe Laybum and Sheela 
Banerjee examine the growth of 
quangos, the nan-elected bodes to 
charge of pubic spending, end ask 
tf they always act in the best inter- 
ests of the public. 

64)0 Harry Enfield's Guide to Opera. 
With the help of Pfeddo Domingo, 
Hany ftods out how people embark 
on operatic careers. Last In series. 

5-30 The Cosby Slow. 

74M Encotsitara. A year In the fife of 
Australia's wOd eastern gray kanga- 
roo. The fflm focuses on two young- 
sters In a group of 60 animals living 
to a remote area, fofiowfng their 
growth from infancy to adulthood, 
and constant struggle for suivival 
against threats such as natural 
disasters and manuring wild dogs. 

64)0 Power and the People. Members of 
the pubic debate law and order, 
discussing the causes of crime and 
the best methods of tackfing It 
Presented by Sheena McDonald, 
vrtth oorrtifoutiora from Conservative 
Home Affaire Committee chairman 
Sir Ivan Lawrence, Labour shadow 
home secretary Tony Blair and the 
chief constable of Thames Valey 
PoSca 

10.00 FHnr Mater’s Crossing- Premiere. 
Offbeat thriBer, staring Gabriel 
Byrne as a gangster’s right-hand 
man who decides to offer his ser- 
vices to a rival hoodhim. With Atoert 
Finney (1990). 

12-10 Fifan: Cries and Whispers. Ingmar 
Ba gm an's tale of love and suffering, 
centering an three Swetflsh eleters, 
one of whan Is dying of cancer. 
Harriet Andersson and Liv Uflman 
star (1972)^Engflsh subtitles). 

1«45 Close. 


938 Tha Now Scoaby Doc Movies. 1230 Wost- 
oaunfty Update 1256 Weotoouwy News. 200 Sal 
trie Worid. 230 The Weeteounhy Match. 930 A) 
the Earth's Core. (1878) 346 A Tale of Four Marker 
Towns. 546 WK West Corny. 845 WeatcounOy 
News 11.45 Prisoner Cel Stock H. 


936 The New Scooby Doo Morin. 1235 The 
LUaot Hobo. 1230 Calendar Nawa. ZOO HJgtwvay 
to Heaven. 255 The Valey of GwangL (1988) 446 
Cartoon. 4J8Q Father Dawtng tometlgatee. 530 
Calendar News and Weather 1145 MacGyvsr. 

34C VUm o0 fti—nl 4 imigpl 
700 Eariy Morning. 94» SW Sot 930 Now Yoi/ra 
TBfldng. 936 Rawhido. 1030 RalTOddar. 11.16 Trie 
Lone Ranger. 1.16 Mork and Mtody. 146 Graen- 
peocK End of an Era? 245 The ABC of Democ- 
racy. 345 FI (loan -to- One Special: The 
Money-Go-AouKl. 430 tndaar Twnhc The National 
League 530 Dectnau Genu Dechrau CanmoL 530 
Pobol y Cwm. 730 BwiWr SO. 0.10 Hel Sbaeon. 
840 TiHwsfynydd. 940 Newyddton. 245 Satth Ar y 
SuL 1035 San Stortan. 1035 Once Upon a Tfine fit 
America (1B83) 


SATURDAY 


SUNDAY 


BBC RADIO 2 
530 Strata BaroL 836 Brian 
Matthew. 1030 Judl Sptera. 
1230 Hayes on Saturday. 130 
The New* HwkSnaa 200 The 
Golden Days of Radio. 330 
Ronnie HSton. 430 Malden 
Voyages. 5.00 Nick 
Barrack) ugh. 6.00 Daniel 
O'DonnaH in Concert 730 
Cinenva 2 . 730 Gob Concert. 
930 David Jacob*. 1030 The 
Arts Programme i233 Ronnie 
HUton. 130 Adrien Ftnlghan. 
430 Su(ata BaroL 

BBC RADIOS 

530 Open UnNerMy; TflWng 
About the EnfigMenment 536 
Weutner. 730 Record Review. 
030 BufUng a Library, 1046 
Record Rebaaa. 1230 Spirit of 
the Aga. 130 Table Taft. 1.15 
Gaudier Eowmbte, 330 QMfrk 
All in Good 7to«, New aeries. 
530 Jae ftacard Requeets. 

S.45 Music Matters. 630 

Romantic Scones. Granados, 
730 ipHgento « Taurida. 
Gtodk'® opora to a MW by 
Mcotoa-Francab Gutead. 8 uno 
In Frencn. 846 Petar Doig: 
Palnier of Internal Landscape*. 
035 The Aidtttb 3 
Hubderattcto. 1130 
kitpreastom. Brian Morton 
WWvtoww piantot TW RktoaidA 
1230 Oosa- 

BBCfUDI04 

530 N ewe. 840 The Forming 
Weak. Rural Issue*. 630 Prayer 
tor me Day. 730 Today. 


Current affairs round-up. 930 

News. 935 Sport on 4. News 
and convBraeHon. 030 
Breakaway. Hofiday and travel 
mSda. 1030 Loom Ends. Wtm 
Ned Shetrin and guest*. 1130 
The Week in Westmfiwtec. With 
MfcftasMMtlte oflha Guanfloa 
1130 From Ow Own 
ConagxmdanL 1200 Money 
Box. Peraonsl finance. 1225 
The News Quiz. Chaired by 
Barry Took. 130 News. 1.10 
Airy Questions? With guasts, 
MPa Paul Boetang and Edwha 
Curria. 230 Arv Answers? 
071-580 4444. Phone-In 
programme. 

230 PhyhoueK Los Btaneo. By 
Lorraine Monetary. 

430 What If? Debate on what 
might hare happened had 
Henry Vflt atnyad married to Ms 
■rat w«e 

430 Sctonca Now. 

530 Crimes of Our Tbnae 
540 Mhsfana fenprabebto. 

630 Newe and Sporte 
836 Week Ending. 

530 PoetBBKl horn GotJwra. 
730 KaMdoeoopa Feature The 
opening of an Andy Warhol 
museum. 

730 Saturday Nigtt Theatre 

PMCO Write You Can. M i cha el 
Toil's drum. 

930 Music to MfcvL 
930 Ten to Tan- 
1030 Newe 

10-15 Trivia T«l Match. From 
West Maon Ortdcet Cbto. 


Hampshire. 

1045 An BnotoVDai to the 
fifldl John P Harria rara tntoc aa. 
1130 Comparing Notoe 
1130 Cordoba. By Mgei 
Baldwin. 

1230 Newe 

1233 Shipping Forecast. 

1243 (P4 One 

1248 fi.W) As World Sendee 

BBC RADIO 0 

036 Dirty TacWa 
030 The BriHkfeat Programme 
030 Weekend wRh Kershaw 
and WMUakar. 

1T35 Special Assignment 
1130 Crime Desk. 

1230 Midday Edtion. 

1215 Spwtaea* 

134 Sport on Five 
630 Sports Reports. 

836 ShrQ-Stx. 

730 Saturday BtSBon. 

9L3S Out This WMfc 
1033 The Treatment 
1130 Mght Extra. 

1230 Attar Hours. 

230 Up Al Meht. 

WORLD SBRVKX 
BSC tor Europe tan be 
received to WMt a a Europe 
on Medium Were 046 WZ 
(463m) at tiw feOowtog tknee 
GMT: 

630 Morgenmaoortn. 030 
Europe Today. 730 Wortd and 
British Nows. 745 the world 
Today. 730 Meridian. 630 
world News. & 1 S waveguide 
635 Book Choice 83t» People 
and PoUc& 030 World News. 


930 Words of Faith. 0.15 A 
Jofiy Good Show. 1030 Wodd 
News and Business Report. 
10.16 Wortd Brief. 1030 
Oovctopmartt 04. 1045 Sports 
Round-up. 1130 Printer's 
Devil. 11,16 Letter from 
America. 1130 BBC Eriglah. 
1145 Mtifagtetogasto. 1230 
NewsdMk. 1230 Merttflsn. 
130 World News. 130 Worts 
of Faith. 1.16 MMAraek 3. 146 
Sports Round-up. 200 
Newshour. 330 News 
Summary: SportsworicL 430 
World Newe 4.16 BBC Entfsh. 
430 Hatte Aktuefi. 530 World 
and British News. 5.19 
Spotsworid. 530 BBC Engtari. 
630 Haute Aktuefi. 730 News 
and faatuM In German 830 
Nows Summary; Shdkaspeam 
on Screen: the Bart on Otot 
645 From tha Weston. 930 
world News. 930 Worts of 
Faith. 9.15 Development 84, 
830 Meridi a n. 1030 Newshour. 
1130 World News. 1136 
WOrts of Faith. 11.10 Book 
Choice. 1146 Jazz for the 
Asking. 11.46 Sports 
Round-up. 1200 Newsdesk. 
1230 Brands and Sweat Aire. 
130 World and British News 
1.15 Good Book* Take of the 
Sea. 130 The John Dunn 
Show. 200 News Summary; 
Play of the Week; A 
Midsummer Night’s Dream. 
3.00 Newsdesk. 3.30 
Discursive Excursions. 430 
Newsdesk. 430 BBC EngBsh. 
449 News arid Pteas Review In 
German. 


BBC RADIO 2 

730 Don Maclean. 0.05 
Miefleef AapeL 1030 Hayes on 
Sunday. 1230 Desmond 
Carrington. 230 Benny Goan. 
330 Alan DNL 4.00 Young 
Musician 1894. 430 Sing 
Something Sknpta. 630 Charte 
Chaster. 730 Retard Baker. 
630 Sunday Half How. 930 
Alan Keith 1030 Tha Grapes 
of Writing. 1205 Stave 
Madden. 330 Alex Latter. 
BBC RADIO 3 
530 Open IMwnfly: 636 
weather. 730 Sacrad and 
Pratane 830 Brian Ka /3 
Sunday Momtog. 12.15 Musk: 
Matters. 130 Brighton 94- 24S 
Lindsay Quartet Baathovan, 
John Cadian, Debussy. 435 
R ot terdam Phflharmonic 
Orchesn. $46 Making Waves. 
Uva from Oeegow'a MoyfesL 
530 Peter DortOhoo. Beet- 
hoven and Brahms. 730 Btoa. 
By Dank Jarman. 845 Music 
to Tim* 93S Choir Works. 

1230 Close. 

bbc Radio 4 

030 News. 

6.10 Pretoria 

830 Meaning Has Brtkert. 

730 News. 

7.10 Sunday Popere. 

7.15 On Your Farm. 

740 Smday. Relgfous news. 
&50 John McCarthy. Spanks 
on behalf of the Madcaf 
Foundation tor the Cora of 
WdtosofTomra. 


930 News. 

210 Suntay Papers. 

215 Letter from Amarica. By 
AHstak Cooka. 

230 Moraine Santa. 

10J5 The Archers. Omntous. 
11.16 Macfiumwavs. 

1 146 Tha Nsw Bropeana. 

New series. 

1215 Desert bland Dfeca. 

130 The World THs WSokand. 
230 Gardeners’ Question Time. 
230 CtaftdcSraW: Phoebe 
Junior. 

330 Pick of the Weak. 

4.1B Anatysin. 

530 WNston Goes WaflabouL 
230 Poetry Ptaasai 
630 SxCrOock News. 

&15 Letter From. South Woles, 
Last bi series. 

530 The Adnmim otllnfin. 
730 to Business. Woridno from 
home. 

730 A Good Read. With 
Maureen Ufxnen and Barrie 
Rutter. 

630 (FM) What If? What would 
have happened had Henry Vlt 
stayed merited to Ns feet wW7 
830 fLW) Open Ltorwrafiy, 830 
Air wart*. 830 New Curiosity 
Shop. 930 Taking About flw 
SnagtnwwMnt. 220 Market 
E c o nomies to Ruerfa and 
China. 240 Caifetoean and 
Aatan Woritara. 

530 093 1 Couu Haw Died. 
930 (FhQ The Nahnl HBstoty 
Prog ra mme. With KeMn Boot. 
930 fFM) Costing the Earth. 


1030 New. 

1MB Concerto. Ffantat 
Mitauto Uchkta. Last to series. 
11.15 in C o mmit t ee. 

1145 Seeds cf Fatth. 

1230 News. 

1233 Shipping Forecast. 

1243 (LW) As BSC World 
Benrtee. 

l243FM)Ctos& 

B8CRAUOB 

635 Hot PursuBs. 

630 The Breaktant Prsgrarnma 
200 Aflstalr Sfewarf a Sunday. 
1230 Midday EdSton. 

1215 Tha Big Byta 
134 Sunday Sport. 

831 Fantasy Football League 
730 News Extra. 

736 Stock to the Future. 

830 Tha Ultimata Preview. 
lOJBSpKW Assignment 
1038 Crime Desk. 

1130 Mght Extra 
123QMgMcafi. 

200 Up Nl tJgm. 

WORLD semnee 
BBC for ttorapa can be 
received fa Western Bumps 
on Medkea Ware 846 kHZ 
(463m) et the fluNowtoO times 
OUT: 

630 News and features to 
German. 630 Composer Of 
The Month. 730 World and 
Britis h News. 7.15 Letter from 
America. 730 Jaat For The 
AaMng. 030 Wend News. 215 
M a etere togara 030 From Our 
Oum CanaspandsnL 830 Write 
On. 830 Wortd News. 838 of 


Faith. 215 Ray on Record. 
1030 Wortd News and 
Business Review. 1216 Shot 
Story: Tha Outdoor Life. 1030 
Folk Routes. 1045 Sports 
Round-up. 11.00 Nawa 
Summary; Science in Action. 
1130 BBC English. 1145 
News and Press Review In 
German. 1230 Newsdesk. 
1230 The John Dim Shcra 
130 News Sunmary; Play of 
the Week 1 . A Midsummer 
Hflghfa Dream. 200 Newshrar. 
330 News Summary; Extra- 
ordinary and Plenipotentiary. 
330 Anything Goes. 430 
WMd News. 4.15 BBC EriSfish. 
43q News and features In 
German. 630 World and British 
News. 215 BSC Engfeh. 830 
World News and Business 
Review. 215 Printer's DftviL 
630 News and features In 
German. 200 Sounds and 
Sweet Aire. 830 Europe Today. 
200 Wortd ffewa. 209 Worts 
of Faith. 9.15 Sounds ol 
GoepeL 830 Jazz Sara 1030 
Newshour. 1130 World News 
raid Business Review. 11.15 
Short Story. 1130 Letter from 
America. 1145 sports 
Round-up. 1200 Newsdesk: 
1230 SdmOBfiMiy and Pleni- 
potentiary. 130 Wortd and 
Britfcih News. 1.15 Rock n Rtc& 
130 in Praise of God. zoo 
News Suranaiy; Shakespeare 
on Screen. 245 Maetsratogere, 
330 Newsdesk. 330 Com- 
poser cl tfte Month. 430 
Newsdesk. 430 BBC Engfah. 
446 RrahmagazinL 


The Italian Game 1 e4 e5 2 Nf3 
Nc6 3 Bc4 Bc5 is a favourite 
among chess novices, so it was 
a surprise when Gary Kaspa- 
rov chose it for his final round 
at Linares. 

Kasparov planned to gain 
space by 4 c3 followed soon by 
b4 and a4. a strategy devised 
more than 100 years ago by 
Henry Bird, a railway accoun- 
tant. 

Bird in his mature years was 
a figure of fun "majestic in 
stature, In girth, in the bald- 
ness of his great head, less 
majestic in the Utter of tobacco 
ash on his waistcoat”. His 
openings seemed bizarre, yet 
the other two moves named 
after him. Bird's Opening I f4 
and Bird’s Defence l e4 eS 2 
NE3 Nc6 3 Bb5 Nd4 have been 
revived recently. In 1866, the 
year Stelnitz became world no 
1 by defeating Anderssen, be 
could only win 7-5 against Bird 
(H E Bird, White; A Born, 
Black; London 1886). 

1 e4 e5 2 Nf3 Nc6 3 Bc4 Bc5 4 
C3 Nf6 5 b4 Bb6 6 Qb3 0-0 7 d3 
d6 8 Bg5 The Bird Attack looks 
primitive, but its subtle point 
is that this pin is effective 
when (a) the black dark- 
squared bishop is outside the 
pawn chain ami (b) Black has 
castled while White has not. 

h6 9 Bb4 gS? Seriously weak- 


ening his king. 10 Bg3 Ne7 11 
Nbd2 cS 12 d4 exd4 13 Nxd4 
Nxe4? An unsound tactic; 
Black should try d5. 14 Nxe4 
d5 15 Nf6+ Kg? 15 Nh5+ Kgfi 
17 Bd3+! KxhS 18 Qdl+ Bg4 19 
^sg4+i Ksg4 20 Be2 mate. 

No 1020 


i 

ifi" & 

i & 

& a & 


White mates in two moves, 
against any defence. This Is 
the starter problem for the 
annual open-to-all British Solv- 
ing Championship. To enter, 
send White's first move, an 
entry fee of £2, and a stamped 
addressed envelope to British 
Chess Problem Society, 9 Royd- 
field Drive, Waterthorpe, Shef- 
field Sl9 6ND, before 1 July. 
Successful solvers qualify for a 
harder postal round sent out in 
late July. 


Leonard Barden 


BRIDGE 


1230 Movfaa, Games are! VUooa. 136 Wastomn- 
try Nawa. 1.10 NBA BaskatbaA 210 Carry On 
Cabby. (1963) 345 Tha A-Toam. 530 Woatcouitry 
News. 1136 Manta YUatoh, (187tD 


1230 Movies. Games and Videos. 135 Catandra 

Nawa. 1.10 The Munsters Today. 135 Zona. 205 

WtVM Wtteh Doctor. (1963) 345 Knight Rktar. 435 

CMrodra Nrera 

S4C hum mm Oironel 4 

730 Eariy Morntog. 1230 Rwwtog tha Hate. 240 

RygbL Cwpan SWALEC 1994. 446 Deputy Doing. 

630 Now Kkfe on the Bool 730 Tytwytn Teg. 730 

Tocyn Tynw. 830 Uygakf Sgwar. 830 Nawjddori 

030 Without Watts; lesbians Unclothed. 030 

Home IntoRXNflNHit. 1135 NYPD Slue. 


Basic Bridge by Ron Klinger in 
collaboration with Pat Hus- 
band and Andrew Kaxhbites, is 
just published by GoUancz at 
£649. An excellent book for 
those who wish to improve 
their bridge. 

This hand illustrates pre- 
emption: 

N 

4AKQ9765 

¥ 2 

♦ 8 

* 9 8 73 

W £ 


W 

4 J83 
¥ 10 9 6 5 4 
♦ KQ 10 
4 AK 


4 10 

¥ KQ J83 
♦ AJ 5 
4 65 42 


nv npoiowa as lommh decbt at tics 

FOUXRHIQ IBBk- 
AWmifi- 

0l2S Tha Now 8 oaaby Doo Movtoa. 1230 Tha 
Uttknt HobO. 1255 Angda Nawa. 200 Wanted: 
Deed or ABwe. 230 Dtooaaxs. 2 GE YAM Rkrer. 
(1960) 530 Angfla Sport SpadtaL 630 Aritfia News 
on Sunday 1040 Ai«fia Waathor. 1146 Sal tha 

Wortd. 

Calll HA L; 

9l 2S Tha New Scooby Doo Mowtos. 1230 Central 
Newsweek. 1255 Central Nawa 200 Taka 15. 215 
Gradantog Time. 230 Tha Central Match - Uw. 
530 Hit the Town. 530 Zoo life with Jack Henna. 
030 Cratoon Tkra. 215 Central News 1040 Local 
Weather. 1145 Prisoner Cel Block K 
GRAHAM: 

035 The New. Scooby Dob Mortal. 1235 Grafs 
Meaaengera 1255 Granada Nows 230 Tha Gran- 
ada Match. 246 Roms Bloom TMca (1077) 430 
Fattier Dowflng Investigates. 215 Coronation 
Street 215 Granada News 1145 Prisoner Cel 
Block a 
HTV: 

935 The Now Scooby Doo Mortas. 1226 The 
Utflast Hobo- 1236 HIV Newe. 200 HTV New- 
sweek. 230 Robto and Marian. (1978) 430 Tha 
Wrist Match. 530 Jownayman. 200 Betjeman's 
West Country, 215 HTV Nows. 1040 HTV Wriattwr. 

1145 Priaonor CeO Block H 
■irntmnn 

035 The Now Scooby Doo Mortas. 1230 Seven 
Days. 1200 Meridian Nows. 200 Tha Ptar. 225 
The Ltattoga. 230 Wanted: Dead or Afiva 330 
Doctor to Ctovar. (1905) 445 Sunday Sport 545 
Jack Ptenyto Coaattoe. 215 Meridton Nawa. 1145 
Tha Ptor. 

SCOTTISH: 

035 Tha New Scooby Doo Movies. 1230 Shooeh. 
1285 Scotland Today. 200 Tope*. (1989) 430 Tha 
Motor Show. 200 Sootepott 215 Sootiend Today 
230 Scottish Passport. 1040 Scottish Weather. 

1146 Don't Look Down. 

TYM TEES: 

93S The N mm Scatty Doo Movtee. 1235 Tyne 
Tees Newsweek. 1255 Tyne Tees News. 200 
highway to Heaven 235 Tha VriBey of GwangL 
pOBfl) 445 Cartoon 450 Father DowCng tomstf- 
gttas. 2S0 Tyne Tore Weekend. «45 MecGyver. 


8 

442 
¥ A? 

4976432 

4 QJ 10 

At love all North deals and 
should bid four spades. After 
Bast's lead of the king of 
hearts the contract is easily 
made by setting up two dub 
tricks. East-West can make 11 
tricks in hearts, but the pre- 
emption has silenced them. 
HaA West dealt and hid one 
heart, four spades from North 


would not have kept East from 
raising to five hearts. 

The bridge quiz produced 
more than 300 entries. The 
answers were: 

1. Pass: Converting North’s 
take-out double into a penalty 
double. 

2. 2NT: The Truscott 2 NT, 
promising a good raise to three 
of partner’s suit 

3. 20: Fourth suit forcing ask- 
ing partner to describe his 
hand further. 

4. 2D: Not forcing, but invita- 
tional, promising good dia- 
monds and some 16-17 HCP. 

My thank* to The Computer 
Specialists for providing the 
Pro Bridge 510. and to the 
Bridge Books Services for pro- 
viding copies of my Bridge 
Play Technique and for cor- 
recting the entries. 

■ Last week I gave the wrong 
telephone number and address 
for the Type-Acoi Bidding 
Guide. This costs £2 plus post- 
age and is available to A L 
Fleming, rear of 12 Salisbury 
Road, Bromley, Kent BR2 STY. 
Tel: 061-313 0350. 

E.P.C. Cotter 


CROSSWORD 


No. 8,447 Set by VIXEN 

A prize of a classic PeUkan Souvertn 800 fountain pen, inscribed with the 
winner’s name for the first correct solution opened and five runner-up 
prizes or 23S PeUkan vouchers. Solutions by Wednesday May IS. marked 
Crossword 8,447 on the envelope, to the Financial Times, Number One 
Southwark Bridge. London SE 1 9HL. Solution on Saturday May 21. 


ACROSS 

1 Disagreeing about a point 
made tongue in cheek (9) 

6 Records same music ( 5 ) 

9 A single trade agreement 
would oe best ( 5 ) 

10 Newsmen going into action 
can get despondent (9) 

11 Start tearing one to pieces 
( 10 ) 

12 Drink left for wildfowl (4) 

14 Given a key. youngsters look 
radiant (.7) 

15 The decoration of a sound 
receiver (7) 

17 Delo using Is such a bloomer! 


DOWN 

1 Failing, lacing tiptop pitch 
(5) 

2 Many tend to lift tbeir voices 
when having a shower (9) 

3 No one thanks soldiers very 
much for returning allowance 

4 Senior lord set wrong CO 

5 Take a certain attitude to 


d rink, as one migl 

6 Some fine Ed want 
essential (41 

7 Fancy a nibble (5) 


guess (7) 
i silver Is 


19 A dog or cat - a mocWoved 

animal (?) 

20 Cheat a man on the board (4} 

22 Bars checking stock (64) 

25 Silence os changes effected 
shows contemptuousness (9) 

26 Not all but some antagonists 
are represented (5) 

27 Take down round about fifty 
and display (5) 

28 This Is vibrant, which Is 
maybe not so rare (9) 


Solution 8,446 


QHQUQtU □QQQDnBE 

q 0 0 a a □ □ 

□□□□□□ QBQBQBQQ 

□ assunoH 
□□□□□□□a antnciEQ 
a a b q q o e 
□ gna EnomuHBaGn 

□ □ □ 0 0 S 
□□HOiiUEEifna Ecmm 
a a e o 0 o □ 

□HEDDB Q0QBOQBB 
DIDIDQQQDQ 
□EH30UH0O EnDDBB 

□ a a id □ 0 q 

HHQaOHDE QQQ0EQ 


7 Fancy a nibble (5) 

8 Just fra minimum 1 1 t urning - 

tk>n is to be turned on please! 

13 Aperts in public transport? 

14 Sire begin reforms - that's 
material (91 

16 Critical of mean social worker 
O) 

18 A bridge-builder's device 
which Is generally useful (7) 

19 The viewer wants news, irs 
made plain (7) 

21 A bird of river and lake (5) 

23 Individual mairinp much of a 
period with royally (5) 

24 Rather too low for a home (4) 

Solution 8,436 


I auataua hcjehbgqe 
oho e a □ a 
aanaaa qqducibuu 

DQQ0HSDG3 
□□□HBDEE □QBDBQ 
aaaaansB 
aaaa aagaoms 
□ □PQBflDB 
0QQ00na QQEB 
QB0Q1HQQI3 
□□□□QS QBnSQBBE 

amaaamHE 
agaaaciQQ qqqhhq 
a □ a a a a e 
unanciBBB qeohbel 


Wear; X. Kreiss, London W9. 







FINANCIAL TIMES WEEKEND MAY 7/MAY 8 1 994 


- .(+ 


h 


XXII WEEKEND FT 



I was never beaten 
as a papfl, in spite 
of being sent away 
as a prep-school 
boarder at the age 
of seven- When I 
emerged from the 
private education 
system, approxi- 
mately 14 years 
later, my bottom was as serenely 
untouched as it had been at the 
outset 

Some might say that my parents 
did not get what they paid for. But 
unless I am s uff erin g from what 
psychologists call dwnfal- I cannot 
recall any occasion on which I was 
beaten at home, either. In other 
words, I am not well Qualified to 
rater into the great flogging debate. 

This was started by the Singapore 
government's decision to give Mich- 
ael Fay. an 18-year-old US resident, 
six strokes of the cane. It was aug- 
mented, by revelations in the UK, of 
the over-zealousness with which 


The press and the bottom line 

Dominic Lawson is the proud holder of an unbeaten English seat 


Anthony Chenevix-Trench, a former 
headmaster of Eton, is said to have 
beaten his pupils. 

It appears that President Clin- 
ton's biggest foreign policy triumph 
to date - persuading the Singapore 
authorities to reduce Michael Fay's 
sentence from six strokes of the 
cane to four - has not been greeted 
enthusiastically in the US. 

Apparently half the population 
would rather like to see the same 
sort of punishment carried out in 
America against vandals such as 
Michael Fay. It seems to me absurd 
that a president, who as Governor 
of Arkansas gave the go ahead to 
the Judicial execution of a mentally 
impaired criminal, should lecture 


another country on “barbaric prac- 


In En gland too, there has been 

public approval of Michael Fay's 
caning. Across the top of yester- 
day’s Daily Mail newspaper there is 
a garishly colourful picture of a 
cane, under the banner headline: 
“IS THIS THE ANSWER TO 
BRITAIN’S SOARING CHIMB 
RATE?" Whether it would be or not, 
is, unfortunately for the Daily 
Mail's characteristically rigorous 
campaign, irrelevant. 

The European Courts have 
already decreed that such corporal 
punishment is not to be allowed in 
the European Union, as the legisla- 
tors in the foie of Man discovered to 


their irritation. No doubt the resto- 
ration of violent corporal punish- 
ment would give a lot of people 
enormous pleasure. The Daily Mail 
was not the only newspaper which 
lingered long and lovingly over the 
details of Micheal Fay’s flogging. It 
was with a slight air of disappoint- 
ment that one newspaper revealed 
that the Singaporean authorities 
allow the administering of a slight 
anaesth etic to the recipients of their 
j udicial callings. Which brings us to 
Anthony Chenevix-Trench. 

He. it is alleged, derived sexual 
satisfaction from flogging naughty 
Etonians, which, we are told, he 
carried out in a state of intoxica- 
tion. In The Spectator, the British 


political weekly magazine, Charles 
Moore, a pupil at Eton during the 
end of Chenevix-Trench's h eadma s- 
fcership, argues that the old boy’s 
excesses - which he never experi- 
enced at, urn, first hand - sho uld 
not be criticised at alL 

“Since imaginative gifts are vital 
for good tpar-hing and since sexual 

d esire stimulates the imagination, it 
is not surprising that many great 
teachers are driven, in part, by 
desire for their pupfls,” argues 
Moore. 

I do not know if Moore would 
continue to faUm such an unruffled 
attitude if hte own son were to expe- 
rience the same bizarre form of 
a ffeWrmr when be goes to Eton: but 


then the situation is hardly likely to 
arise. Eton has abolished flogging. 
As Moore mournfully points out in 
his article: “Schools are freer than 
ever of such men las Chenevix- 
Trench] and they are the poorer for 

What we can say is that present 
day Singapore and the Eton of 25 
years ago have much In common: a 
very hierarchical system within a 
closed society, self-confident about 
its own rigid values, whatever the 
outside world says. Perhaps those 
in, this country who miss that, 
sh p n y i ivtngirier settling in Singa- 
pore. I believe, that it is still very 
miwh open to immigrants. 

Otherwise. I continue to believe 
that those who enjoy the idea of a 
good flogging should not be pre- 
vented from the innocent pleasure 
of pursuing their perversion in the 
sanctity of their own ho me. All they 
have to do is read the newspapers, 
i Dominic Lawson is editor of tile 


Private View/ Christian Tyler 


The enemy of the cultural classes 


Capitalist apostle , Michael Novak, 
believes that society is under attack 
and that welfare harms the poor 


A n odour of sanctimony 
clings to those who 
have seen the light. If 
the pitiless puritan- 
ism of the ultra-left is 
ugly, there is a sickly smell, too, 
about the certitude of the righteous 
right 

No doubt Michael Novak, a Cath- 
olic American theologian and politi- 
cal writer, is sincere to the bottom 
of his boots. He stands for liberty, 
democracy and morality. Much of 
what he says in praise of capitalism 
is probably correct He is not (at 
least in US terms) on the extreme 
right Nor, I am sure, would he 
endorse the claim of his profes- 
sional publicist to be “one of the 
world's most original thinkers of 
the late 20th century”. 

And yet... 

Novak was this week presented in 
London with the Jim Templeton 
prize for “progress in religion'', an 
obscure award designed by its 
founder, a retired Wall Street inves- 
tor, to overshadow the Nobel. 
Among the Judges were Baroness 
Thatcher and her former adviser 
Lord (“wealth is no sin") Griffiths. 

Novak is said to have been stud- 
ied by the leaders of Solidarity in 
Poland, Charter 77 in Czechoslo- 
vakia. Margaret Thatcher and even 
- it is rumoured - by the Pope. He 
Is an habitui of the right-wing Insti- 
tute of Economic Affairs In West- 
minster, so it was there that I met 
him this week. 

I found a plump 60-year-old, smil- 
ing faintly and speaking in a 
high-pitched, somewhat effeminate 
voice. It was hard to imagine the 
robust youth he described who, at 
14, entered a Cathode seminary in 
order to protect his priestly voca- 
tion from the temptations of foot- 
ball and girls. 

Novak will not of course be 
spending his £650,000 prize money 
on fast cars and finest claret He 
wants to set up scholarships at his 
old college in Massachusetts in 
memory of his parents and brother, 
a missionary murdered in Dacca 30 
years ago. He will replace the old 
van which his artist wife uses to 
transport her paintings, educate 
their first grandchild and use the 
rest to buy more writing time. 

His priestly vocation foil before 
the fined hurdle of ordination. In 
those days an Instinctive socialist - 
os he says most Catholic clergy are 
- he was gradually forced to the 
conclusion not only that socialism 
had done nothing to end poverty 
but that welfare was paralysing 
“the able-bodied poor". 

He is not a laissez-faire libertar- 
ian. That, he said, was too narrowly 
individualistic, too abstract. He 
accepts the label neo-conservative 
even though it was used by his one- 
time hero, the Catholic socialist 
writer Michael Harrington, to 
describe defectors. Novak says that 
where formerly he was lionised, 
now he was "excommunicated". 

Novak’s thesis, advanced with a 
hint of heretic pride, Is that the free 
society is everywhere under attack. 
The century had taught us that 
democracy was better than dictator- 
ship and capitalism bettor than 
socialism. But democratic capital- 
ism would not survive without the 
"habits of liberty", the moral 
dimension. 


When I suggested he was still 
fighting the cold war, Novak talked 
about the enemy within. 

“The heights of our culture, the 
journalists, the intellectuals, the 
universities, the artists, those 
responsible for the ideals and sym- 
bols by which we live are still pre- 
dominantly to the left and anti-cap- 
italist, with a passion and vigour." 

Why are you so concerned, com- 
ing from the country least suscepti- 
ble to socialism? 

“Well, we have a president whose 
ideal society is Germany - its 
health system and so forth - and 
we have a large body of fclite opin- 
ion moving in that direction. So it’s 
not a dead issue. It's really not" 

With the churches losing their 
grip, where is the morality you 
speak of to come from? 

The Christian ethic was still 
strong in the US. he said. “But it’s a 
real problem for secular Europe. It 
isn’t that when people stop believ- 
ing in God they believe nothing. 
They believe anything. It's a quip of 
Chesterton’s. The most remarkable 
passions are sweeping through our 
highly educated classes. It’s a sad 
thing that morality becomes the 
fashion of what you call in Britain 
the chattering classes. 

“Journalists are going to play the 
critical role because journalists are 
the media through which every- 
thing goes, then academics, profes- 
sionals and, God willing, the 
churches. 

“It can’t be that all the blood that 
was shed for free institutions was 
shed for Madonna [he meant the 
singing one] and Phil Donahue and 
the rest of popular culture. There’s 
got to be more than that We*ve got 
to give more serious thought, or we 
will perish In the 21st century." 

Apocalyptic stuff. But journalists 
as saviours of civilisation? 


N ovak continued: 

“That’s where the 
greatest moral threat 
comes from today - 
our cultural classes.” 
Television and cinema had huge 
power over the souls of people but 
no guidelines or responsibilities. 
They were led by instinct by what 
was popular. 

I accused him of creating a straw 
man out of the remnants of social- 
ism in order to make his attack 
seem more robust 
“If you don’t tii fok political cor- 
rectness can go to absurd lengths, 
come to America for a while and 
you'll see the logic of uniformity 
pressed to its utmost." 

But they're just a joke. I said. 

“It isn’t a joke." 

We discussed the detects of capi- 
talism and I cited the dereliction of 
upper yr ar| hflttan Novak contrasted 
the entrepreneurship of the early 
immig rants with the welfare depen- 
dency of todays ghetto-dwellers. 
The devastation, he argued, was 
caused by welfare. Government 
intervention should be minimal, 
and welfare restricted to the old, 
young, in mid crippled. 

What about the poor of Brazil? 

“I have been asked many times: 
What, sir, would you do if you had 
the power? Well, after overcoming 
the feeling of power rushing to my 
fingertips, I would do three things. 
The first would be to change the 



ArteyAoMood 


law to make it easy for poor people 
to incorporate their own businesses, 
cheaply and easily - say $30, 
through the mail in two weeks with 
no bribes and fees." 

Enti tling them to sen wiatohaa on 
the street? 

“No. to do several things, to do 
what they undertake as a legal mat- 
ter." 

Like prostitution? 

•Hat's a stupid question." Novak 
was stung. “That’s a stupid ques- 
tion." 

A study in Perm he continued, 
had shown that 90 per cent of public 
transport and 60 per cent of housing 
was provided by tilegoles or infor- 


males who could be locked up for it 

“Most poor are entrepreneurs. 
They are not peasants. They are 
fleeing the land in tens of minio ns. 
They are not proletarians, they are 
buyers and sellers and also very 
good little manufacturers." 

The other two necessary reforms, 
he said, were access to credit and 
education. 

In Britain he detected “a larger 
sense of pride an/? belonging to a 
vital nation” as a result of neo-con- 
servative policies. 

There's also been a large increase 
in the number of young people 
sleeping on the street, I said. 

“I am not an expert in the British 


situation. But if it is at all parallel 
to ours that goes along with how 
hard it still is in Britain to incorpo- 
rate businesses. The greatest 
employer of youth is the small busi- 
ness. There’s no shortage of work to 
be done, of housing in need of paint- 
ing and plastering and so forth.” 

Capitalism tempered by con- 
science, and the marketplace as the 
fusion of individual interests for the 
common weaL But was he telling us 
anything new? 

“It's the fete of people who work 
In theology and philosophy, that 
whatever you uncover, if you 
uncover it well, should be said by 
others to have been there all the 


time.” 

Yet your appeal seems to be to 
the past, I said: the Founding 
Fathers, minimal government, low 
taxation, self-reliance, co mmuni ty, 
a charming , pastoral picture of 
early America. 

“But I think it’s a quite combative 
picture in this part of the 20th cen- 
tury, a battle well worth fi ghting . 
Thomas Jefferson said that every 
generation has to recover the 
secrets of liberty. Because they are 
secrets. One reason they are so frag- 
ile is that any one generation can 
freely give them away, by neglect or 
by a wilful act, can turn off the 
lights and walk out." 


any may have shared 
/I my opinion of motor 
f I raring: a matter of 
getting the best car 
ile and putting your foot 
Noisy, dirty, tedious, you 
o idea who Is winning- It b 
! sport which is the opposite 
thy exercise. 

*d, it might even be disquali- 
a sprit if yon accept the 
ion laid down by an editor 
horn I once worked: “Do you 
a take your fag out of your 
before you start?" If you can 
while doing it, then it isn’t a 
. so motor racing ranks, or 
mgside darts. 

the tragedies of last weekend 
,1a made me at least think 
Motor racing is the only 
Stive sport in which those 
4 risk their lives as a matter 
be. The deaths of Roland 
Larger and Ayrton Senna 
Rostrated the rote of the 
SSwer as a universal mod- 
t Tfo other sport produces 
w j£v attract the same recog- 


As They Say in Europe/ James Morgan 

Reality visits the race circuit 


nition, even awe, from a global 
public. The obituaries perpetuated 
the myth of the driver-as-hero. 

Reports and comment on the 
news also served to highlight con- 
trasting national attitudes. Not 
towards motor racing but to the 
meaning of life and the significance 
of death as a spectacle. 

In serious British newspapers, 
the events were a matter for tile 
news and obituary pages. Bnt most 
main French dallies derided that 
the loss of Ayrton Senna was wor- 
thy of the highest editorial consid- 
eration. The communist Hvmamte 
drew an unsurprising Marxist con- 
clusion: “In spite of the interven- 
tion of the drivers, the sporting 
authorities did not deign to inter- 
nipt the spectacle when it was 


taming into a blood bath. Spon- 
sors’ contracts prevail-" 

For many, there was the problem 
of death-as-news. “If, in itself, the 
death of two drivers on a Formula 
One grand prix circuit is not more 
tragic th ey the numerous drily vic- 
tims counted in Bosnia, Rwanda or 
on our roads, the death of Ayrton 
Senna arouses more a passing 
emotion." said La NouaeOe R&pubtt- 
que du Centre-OuesL 
It then went on to consider put- 
ting robots in cars, hot concluded 
that no robot could replace the man 
in the cockpit because “once a fort- 
night, the grand prix races bring to 
lftbn viewers those heroes who 
bear their highest a spi r ati ons." 

For Frtmce-Soir, the deaths pro- 
vided yet another nhance to con- 


template the nature of human folly. 
Investing billions to gain a tew sec- 
onds was only one facet of futility 
- less serious, perhaps, than the 
other news of massacres and civil 
war. Nonetheless, it provided a 
more serious moral: “In adoring 
the Golden Calf - or, if you prefer, 
the Dollar Calf - men, tempting the 
devil, finish by enraging the gods." 

Contrast tills with Germany. One 
lone pontiff cation, and that only 
from the Magdeburg Volksstunme: 
“There will be a world-wide outcry 
against excess speed, first and 
rightly against unsafe circuits. In 
coming days, the chain of unfortu- 
nate evrats will be held responsible 
for the battlefield of Imola, bnt 
man himself Is the cause.” This 
kind of thing might encourage even 


Anglo-Saxons to see virtues in 
French intellectual pretension. 

It was, however, the Italian 
sporting press which showed the 
greatest qualities, The Sunday edi- 
tion of La Gazsetta dello Sport ran a 
huge headline: “Tragedy at Imola." 
and an editorial beaded: “No, it's 
not a video game," One must 
repeat that was on the Sunday, the 
day after Ratzraberger’s death but 
before Senna's. Nobody else took 
much notice of Ratzenberger. 

GOOd journalism wiaawy _ among 
other things, spotting the story 
first and La Gazixtta proved this in 
its editorial on Ratzenberger’ s 
crash: “It had to happen sooner or 
later. And not only because of the 
iron law of statistics. For too long, 
Formula One has been considered a 


kind of video game where cars 
travel at the greatest speed and 
only occasionally crash. The driver 
walks from his box, raters another 
and entertains the public again. 
Death becomes virtual reality.” 

For its next Issue, the headline 
proclaimed that Formula One had 
died with Senna. Its commentary 
described this category of race as 
“a sort of ‘citadel of mad- 
ness' . . . .creating paragons of mysr 
tification from a better past, and a 
present flying towards perdition." 

The Latin temperament commu- 
nicates the symbolic significance of 
events which stolid northerners 
find hard to reconcile with their 
fixed hierarchy of values. The lat- 
ter feel ashamed of agonising over 
the death of raring drivers, so triv- 
ial In a world of mass tragedy. For 
Latins, though, all tragedies are 
linked ; Imola and Bosnia are part 
of the same reality. It is all beyond 
me but. certainly. I now see motor 
racing in a different light 
■ James Morgan is economics corre- 
spondent of the BBC World Service. 


For 

the 


chop 


Michael 

Thompson-Noel 



HAWKS 

— & — 


HANDSAWS 







We are on our nay 
out, men. Our Dun- 
kirk looms. Our 
irrelevance grows 
more viable day by 
day. I am amazed at 
the q»ed of the dis- 
taff revolution; at 
how quickly the 
- seething mass of. 
womankind has inveigled itself into 
position for its attack on m/mHu j 

First we had millions of yean of 
progressive and sensible evolution, 
during which we made our disposi- 
tions and thrashed out our. grader 
roles. Then we had feminism, which 
was initially quite cute, 
as it did, of fairness and equality. 
Then - just like that - we were Into 
post-feminism. Do you remember 
that? It was over In a trice. Now 
men are facing their final goty hour 

- the age of machismo. 

Evidence? There is tons ri it My 
week started badly with a report in 
The Times, by Sally Jones, that 
well-known snoopy-drawers, on the 
horrible success of English female 
sporting teams. "Why can’t our mm 
be more Uke our women?" was how 
the termagant Jones kicked-off 
her report, and on it went from 
there. 

Apparently, the English women’s 
rugby team recently won the world 
championship. Apparently, lari 
summer, the English women’s 
cricket team won the World Cop. 
Apparently, the English woman's 
football tram has readied the quar- 
ter-finals of the European Champi- 
on&hlp without losing a gams. All of 
this, of course, in contrast to the 
various English men’s teams, which 


Verrt 




iirt» 




*n 




re® 


tore 


urn 






■gt&* 




jEtU. 


an J,! 




fa 


are not worth a toss. 

I am too much the gent to 
describe the crop-haired, jetty- 
jawed, quaking-thighed, puneb-yoo- 
in-the-mouth monstrosities that 
play is women's sports trams, espe- 
cially England’s. 

But I confess I was driven to terns 
by the whingeing that the Jones 
creature insinuated into her report. 
alongside the triumphalism. Appar- 
ently, sponsors are uncommonly 
hard to find for women's sport 
Apparently , it cost each England 
female rugby player an estimated 
£6.000 to take part In the world 
championship and the internation- 
als that preceded it 

Not that this will last. Tbs way 
things are going, female sports stars 
will soon be awash in sponsorship 
money. The day of the first dm 
lipstick endorsement is not far 
away. M ale sport s stars, in contrast 
will be stripped of their contracts, 
denuded of their glamour, marginal- 
ised and humiliated by the sud- 
denly swelling horde of female 
sports writers: kilters all, I have met 
quite a few. 

The second vicious experience of 
my unpleasant week was to be trau- 
matised by Maureen Freely’s 
exploitative novel. Under (he w 
cartia, published by Bloomsbury, 
whose name, as you know, is synon- 
ymous with shame. I can banily 
bring myself to explain what Vul- 
cania is about; can hardly sit hoe 
at the screen, typing these words, 
without falling into a froth. Bat I 
think I have to try, if only to bolster 
zuy claim that the age of machism 
has entered its dawn-time. 

Vulcania is a palace of pleasure, 
sri: cm a sculpted hilltop, attended 
by women - businesswomen, heuse-. 
wives - in order to recharge thrif 
batteries with personal servicing by 
discreet and well-muscled male 
undergraduates. 

I will not describe what goes on 
in the Rough Trader Saloon, the 
Hard-On Cafe or the cubicles of Cbe 
Roman Baths. Suffice it to say that 
Odder the Vulcania is scandalously 
voyeuristic, with no redeeming 
social or cultural values. The men 
are playthings, without dignity or 
feelings, to be used - and used 
again - and then cast away. 

Hie week's third iwrident was the 
falling Into my hands of yet another 
book: Deadlier than the Male; F& 
fence and Aggression in Women, W 
Alia Kirsta, from HarperCollins. 
Whereas Vulcania is just pomogr* 
phy, Deadlier than the Male is dyto* 
mite. 

It is a study of female anger, vio- 
lence, hate and criminality. It is ttie 
first book, says the publisher, “la 
which a woman dares to chaHra# 
the most persistent and cherished 
images of her own sex. Drawing 
recent sensational criminal cases, 
diverse academic research and 
extensive pers onal interviews wife 
violent women, Alix Kirsta probe 3 
the blackest recesses of the 
psyche. The resulting revetottatf ^ 
about women’s aggressive instincts *| ^ 
fare! chilling and shocking . ■ ■ 
demonstrating that women have 35 
prat a capacity as men for desto 1 ^ 
tiveness, she ensures that our vie* 
of women can never be the sail* 
a gain " 

It is all quite dear, mm - We 
heading for the chop. Will we & 
quietly? I maintain that we show®' 


SK-- " 5 » ■ '• 











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