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Food and Drink: 
the French 
Connection 

PageXlE - 



A balanced 
view of 
Kissinger 

Pago XXII 


Showdown at Orly 

Landing rights and 
§■ 1 &S wrongs in Europe 

-JT i I • J i f • .rtf ~ ‘^v 



FINANCIAL TIMES 


FT-SE 100 index 

Hourly movements 
3 , 160 ' — -■ ■ 


3.1-w -a - 


3,120 



3-100 


3.080 


9 Ma/94 

Soureer. OMaatream 


13 




Russia and west 
agree to relaunch 
Bosnia peace plan 

Foreign ministers from the US, the European 
Union and Russia yesterday overcame deep internal 
divisions over Bosnia and settled on a plan to 
relaunch peace negotiations during a proposed 
four-month ceasefire. 

The minis ters also reaffirmed an existing plan 
giving Bosnia's Serbs 49 per cent of the country 
with Moslems and Croats t aking the rest The 
warring parties currently reject this arrangement, 
although they initially signalled acceptance. Page 2 

Metals prices soar: Copper reached $2,179 
a tonne on the London Metal Exchange, its highest 
price for 14 months. Nickel was at a 15-month 
high and aluminium reached a 22-month high. 

Coffee prices soared to a five-year peak. Page 12 

UK airlines to test ruling on Orly: British 
Airways and Air UK plan to defy French resistance 
and fly into Orly Airport, Paris, on Monday follow- 
ing a European Commission r ulin g that the airport 
must be opened to foreign airlines. Page 24 

Footsie falls sharply In late trading 

UK share prices fell 
sharply in late trading, 
ignoring a solid perfor- 
mance by Wall Street 
and by US Treasury 
bonds after encouraging 
US infla tion figures 
for April. Dealers, 
at first perplexed by 
the sudden slide, said 
that most of the pressure 
came fromihe futures 
market At the close 
of a busy trading session 
the FT-SE 100 index 
closed 18-6 lower at 
3,119.2. Over the week, the Footsie has risen 17.2 
points. Page 15; Markets, Weekend n 

Bank to seH convertible bond: The Bank 
of England plans to auction a short-dated UK 
government bond on May 25 that will be convertible 
into a long-dated gilt - the first time it has issued 
such a convertible stock since 1387. Page 7; Lex, 
Page 24 

Rescue plan lifts MetaBgeseltsctiafl: Shares 
in MetaUgesellscbaft jumped nearly 15 per cent 
after the German metals, mining and industrial 
conglomerate, which came to the verge of bank- 
ruptcy last January, published details of its planned 
restracturing programme. Page 11 

Schraders plans US takeover? UK merchant 
hank Schroders is close to fairing control of Wert- 
heim Schroder, its US affiliate, in a $150m deal 
which will give it the biggest wholly-owned Wall 
Street investment ha nking business of any British 
merchant bank. Page 24 

IRA kill police station cleaner? A police 
station cleaner was killed and his wife and two 
young children injured when their car was blown 
up by an IRA booby-trap bomb at Lurgan, Co 
Armag h Shm Ffein move lifts peace hopes. Page 7 

Euro Disney plans shareholders' meeting: 

Euro Disney, the troubled leisure group which 
runs the EuroDisneyland theme park near Paris, 
hopes next week to call a meeting of its sharehold- 
ers to approve the terms of its FFrl3bn ($2J2tan) 
emergency financial restructuring package. Page ll 

Privatisation to be Italian priority: The 

new Italian government suggested priority would 
be given to privatisation and reducing the state's 
dominant role, in a government programme to 
be delivered to parliament on Monday. Page 3 

Asia urged to fight money laundering: 

A task force representing 26 industrialised coun- 
tries is pressing Asian governments that supervise 
fast-growing financial sectors to legislate against 
money laundering. Page 3 

World Bank cash to help blind: The World 
Bank approved a $1 17.8m loan to India to support 
cataract surgery aimed at restoring sight to more 
than Sm people by 2000. Page 4 

Churchill letters fetch £76,000: Four love 
letters written in 1904 and 1905 by Winston Chur- 
chill to to Muriel Wilson, a society beauty who 
rejected him, fetched £76357 ($112300) - more 
than five times the estimate - at a Christie’s 
auction in London. 

Dispute settled after 381 years: The Court 
of Appeal ruled that Smithfield meat market 
in the City of London belonged to the City corpora- 
tion and not to the Crown Estates, ending a dispute 
which began 381 years ago. Page 7 





, WEEKEND MAY 14 /MAY ^15 4994 : 


**£$■ 




■ STOCK MARKET INDICES 


FT-SE 100 : 

-. 311&2 

HU) j 

New York tendMne: 

Ylsld . 

- 3 J 9 Q 


S 

1.489 


FT-SE Eurotracfc 100 

- 1468 A 3 

(♦ 7 . 05 ) 

Union: 



FT-S&AAKftst 

-157153 

(- 06 %) 

$ 

1.5004 

( 1 . 4994 ) 

Ndffi) . 

2027 H 75 

M 6 . 51 ) 

DM 

25012 

( 15052 ) 

Nm Vote hncMtaw 



FFr 

& 577 S 

( 05897 ) 

Dow Janes bid An _ 

-.385068 

(+ 6 -B 4 ) 

SR 

11369 

( 2 . 1446 ) 

Stf Composite 

443*9 

wuw 

Y 

157.169 

( 156 . 695 ) 

■ US LUNCHTIME RATES 


£ index 

sai 

(Sara) 


Federal Funds . 




3-roTrEas Bis Vti . 42 % 

long Bond MjJ 

ftld 7.534% 

■ LONDON MONEY 


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LfflBlcnggft tutm ...An 105^ (JunKM.U 

■ NORTH SEA OIL (Areas) 


Brails-*? UUH $18365 

■ Gold 


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Mbs York Come* (Jui) __S 3815 ( 380 - 8 ) 
bnfcn [ 378 . 0 ) 


■ STMUNO 


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New York tuncMme 
DM TJ56SE 

FFr 5.724 

SFr 142525 

Y 104875 
London 

DM 15871 ( 1 . 6708 ) 

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SFr 14243 (1.00) 

Y 1 MJ 55 ( 104 . 505 ) 

$ Index 6S7 (Same) 

Tokyo do» Y 10458 


For customer service and 
other general enquiries call: 

Frankfurt 
( 69 ) 15685150 


Labour seeks 
to avoid split 
in battle for 
leadership 

Support grows for Blair as 
Brown appears set to stand 


By Kevin Brown and Pfiffip 
Stephens 

Support for Mr Tony Blair, 
Labour's shadow home secretary, 
hardened yesterday as the party 
appeared set to speed up the con- 
test for a successor to succeed Mr 
John Smith as leader. 

As both major parties struggled 
to come to terms with Mr Smith's 
sudden death on Thursday, it 
became clear that Mr Gordon 
Brown, tiie shadow chancellor, 
was also determined to stand. 

But amid confusion about the 
timing and rules for an election. 
Labour MPs «rid there would be 
strong pressure on the two man 
to avoid a divisive struggle by 
agreeing on a single leadership 
candidate representing the par- 
ty's “modernising” tendency. 


The man who might be 


.Pages 


Labour’s JFK 

Major urges time for 

reflection Page 7 

An opportunity to end 
adversity Page 8 


Senior Conservatives said the 
chang ed political landscape may 
prompt Mr John Major, the prime 
minister, to postpone his planned 
cabinet reshuffle to give the gov- 
ernment time to develop a strat- 
egy for combating Labour’s new 
leader. 

Cabinet ministers said there 
was virtually no risk of an 
autumn challenge to Mr Major, 
but right-wing backbenchers said 
his future continued to depend 
on strong leadership. 

Some Labour MPs said the out- 
come of the party’s leadership 
contest could depend on Mr John 
Prescott, the traditionalist 
shadow employment secretary, 
and Mrs Margaret Beckett the 
left-wing acting leader. 

Mr Prescott is minded to enter 
the race, but is considering a deal 
with Mr Blair under which he 
would become deputy leader with 
responsibility for running 
Labour’s election campaigns. 

Such a “dream ticket” would 
team the telegenic Mr Blair, one 
of Labour's key “modernisers.” 


with a deputy with strong links 
to the trade unions and the par- 
ty's traditionalists. 

But it would be difficult to 
arrange unless Mrs Beckett 
agrees to stand down as deputy 
leader before the party confer- 
ence in late September. 

The party's national executive 
committee will meet on May 25 to 
discuss the timing and rules for 
the election, but is likely to put 
off a decision until mid-June. 

This would accord with the 
shadow cabinet's wish that lead- 
ership campaigning should not 
start until after the European 
elections on June 9. The result 
would probably be announced 
at a special conference in 
July. 

Mr David Blunkett, Labour’s 
chairman, said the party would 
move “sensibly but quickly into 
resolving the leadership, and the 
opinion appears to be we should 
try and do that by mid-July.” 

Mr Blunkett urged candidates 
not to engage in open campaign- 
ing until the race is officially 
declared open. 

Voting could fokp up to five 
weeks because of the require- 
ments of the one member, one 
vote, electoral system • intro- 
duced last year at Mr Smith's 
Insistence. It gives a third of the 
votes to each of three groups: 
MPs and MEPs, individual party 
members, and trade union sup- 
porters who pay the political 
levy. 

The introduction of individual 
voting will reduce the influence 
of left-wing trade union leaders, 
and is likely to benefit moderate 
candidates such as Mr Blair and 
Mr Brown. Most MPs regard Mr 
Blair as the clear favourite. How- 
ever, some warned that his great- 
est handicap might be the strong 
support for his candidacy emerg- 
ing in the mpriift 

Some MPs said that either Mr 
Prescott or Mr Brown might be 
more acceptable than Mr Blair to 
constituency activists. Mr Brown, 
who represents Dunfermline 
East, may also win strong back- 
ing from the large group of Scot- 
tish Labour MPs. 

Continued on Page 24 



Celebrating Palestinian police brandish AK-47 automatic rifles, the symbol of their new freedom, alongside the Palestinian flag ncumr 

Palestinians mix joy with disbelief 


By Jirfian Ozanne in Jericho 

Jubilant Palestinians hugged and 
kissed their new police force as it 
triumphantly entered Jericho 
yesterday after Israeli soldiers 
lowered the Star of David flag 
and formally quit the town after 
27 years of occupation. 

The Palestinian police, in green 
uniforms and berets, arrived 
showing the victory sign and 
brandishing new AK-47 auto- 
matic rifles above their heads. 
Under the Palestinian self-rule 
accord, Jericho will become the 
seat of the new administration, 
which covers the area around the 
town and the Gaza Strip. 

In the main square, drivers 


Israelis withdraw from Jericho 
after 27 years of occupation 


honked their horns, cafe owners 
blasted loud music and boys 
waved the Palestinian flag and 
pictures of Mr Yassir Arafat, Pal- 
estine Liberation Organisation 

(■hairmnn 

Throughout the day, Jericho's 
residents mixed euphoria with 
near disbelief that the Israelis 
had really gone. Townspeople 
woke to find a vanguard of Pales- 
tinian policemen standing on the 
roof of the central police station, 
evacuated by the Israelis during 
the night 


“I nearly lost control of my car 
when I saw our Palestinian police 
there,” said Mr Isaac Shawa, a 
storekeeper. “I thought I was still 
dreaming but then I realised it 
was true. 

“I feel extremely happy. There 
is a real change on the ground 
and we can start to sleep peace- 
fully and start a new life with 
our freedom. For us, Friday the 
13th will always be a lucky day.” 

Just outside the town, tr ucks 
loaded with uniforms, boots, fil- 
ing cabinets and furniture moved 


into Israel's former military 
camp. Brigadier Ismail Jabr, com- 
mander of the Jericho police 
force, promised a crowd of Pales- 
tinians that he would govern 
them with democracy and law, 
and that from Jericho the PLO 
would one day enter Jerusalem. 

The 750-strong police force 
came from the Ai-Aqsa brigade of 
the Palestine Liberation Army, 
based in Iraq, and the Badr bri- 
gade from Jordan. One officer, 
who refused to give his name, 
said he had been in Basra, 
southern Iraq, during the Gulf 
War “on operations”. 

Mr Mohamed Mahmoud, 

Continued on Page 24 


Japanese withhold vital Eurotunnel cash 


By Robert Peston and 
Roland Rudd 

Eurotunnel is on the brink of 
another financial crisis this 
weekend because its Japanese 
bank creditors have contributed 
little of vital new financing with 
only one working day remaining 
before Monday evening’s dead- 
line for £700m of loans to be 
raised. 

Because of the gravity of the 
situation, Mr Pen Kent, a Bank of 
England director, is intervening 
to try to persuade the banks to 
contribute their share of the 
funds. 

The Bank is talking both to the 
banks directly and to Japan's 
central hank 

“We are not going to let this 
vital transport project go down 


for the want of a couple of yen." 
a UK government official said. 

European bankers said they 
were considering whether to ask 
Mr John Major, the prime minis- 
ter, to write to his Japanese 
counterpart. Mr Tsutomu Hata. 

A senior Whitehall official said: 
“The government is ready for a 
bit of arm twisting with the Japa- 
nese banks.” 

The tunnel operator needs to 
raise £700m in new senior h ank 
debt from its syndicate of 200 


banks prior to launching a rights 
issue to raise a similar amount. 
However, it has received commit- 
ments for just £5 00m. largely 
because of the absence of 
contributions from Japanese 
banks. 

The new funds are needed 
largely because of the delayed 
start to services through the tun- 
nel which means that the com- 
pany will receive less revenue in 
the next couple of years than was 
originally hoped. 


In order for the financing to go 
ahead, a 90 per cent majority of 
banks also has to agree to change 
bank covenants, since the com- 
pany is currently in breach of its 
borrowing agreements. It cur- 
rently has 80 per cent of votes in 
favour and needs positive 
responses from “just a dozen 
more banks”, a banker said 
However, the fund-raising exer- 
cise cannot succeed without the 

Continued on Page 24 


India invites private sector 
to invest £4.9bn in telecoms 


By Stefan Wagstyt in New DeBii 

India announced the end of the 
state's monopoly of telephone 
services yesterday and invited 
private companies, including for- 
eign groups, to invest up to 
Rs230bn f£4£9bn) over the next 
three years. 

The decision, the latest step in 
the country's economic liberalisa- 
tion programme, has been made 
on the eve of a visit to the US by 
Mr P.V. Narasimha Rao, the 
prime minis ter, to promote trade 
and investment 

A highlight will be a meeting 
with leaders of th e US telecom - 
munications industry in Hous- 
ton. Potential investors are likely 
to be attracted by the prospect of 
entering one of the world's least 
developed telecommunications 
markets, with only eight tele- 
phone fines per 1,000 people, com- 
pared with a global average of 
100 lines. 

However, the announcement 
yesterday left unclear the 


detailed terms under which pri- 
vate investment will be permit- 
ted, and left considerable author- 
ity in the hands of the 
government’s telecommunica- 
tions department, which will be 
both a competitor in providing 
services and a regulator. 

The policy statement sets out a 
target of increasing the number 
of fines to be installe d in the gov- 
ernment’s 1992-97 five-year plan 
from 7.5m to 10m. Given that 
India had just 5 -3m lines in early 
1992, the plan envisages nearly 
trebling the stew of the network. 

The government calculates it 
will need about Rs230bn on top of 
the Rs245bn originally allocated 
for the five-year plan, and private 
companies are invited to help 
close the investment gap. But 
there win be restrictions. 

Companies entering the market 
will he required to operate in 
rural and urban areas. They will 
have to agree tariffs and revenue- 
sharing arrangements with the 
telecommunications department. 


which is entrusted with protect- 
ing consumers’ rights and ensur- 
ing fair competition. 

Mr Ram said the maximum 
permissible level of foreign 
equity participation would be 
decided “case by case". 

The new policy has been set- 
tled after six months of political 
wrangling between Mr Ram and 
Mr N. Vittal, chairman of the 
government’s Telecommunica- 
tions Commission and the chief 
civil servant overseeing telecom- 
munications. Mr Vittal originally 
proposed radically overhauling 
the industry, including turning 
the telecommunications depart- 
ment into a corporation, prior to 
possible privatisation. 

The result is seen as a compro- 
mise. But much will depend on 
officials’ attitudes. They have 
shown themselves slow to wel- 
come private companies into ser- 
vices such as mobile telephones, 
in which entry has been limit ed 
by bureaucratic delays, restric- 
tive rules and legal disputes. 


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© THE FINANCIAL TIMES LIMITED 1994 No 32,366 Week No 19 


LONDON - PARIS - FRANKFURT - NEW YORK - TOKYO 












FINANCIAL TIMES WEEKEND MAY 14 /MAY IS log, 


US, EU and Russia agree new drive 

West to relaunch 
Bosnia peace plan 


NEWS: INTERNATIONAL 


Italian privatisations to be priority 


By Our Foreign Staff 

Foreign ministers from the DS, 
the European Union and Rus- 
sia yesterday overcame deep 
Internal divisions over Bosnia 
and settled on a plan to 
relaunch peace negotiations 
during a proposed four-month 
ceasefire. 

The ministers also reaf- 
firmed an exis tin g plan giving 
Bosnia’s Serbs 49 per cent of 
the country with Moslems and 
Croats taking the rest. The par- 
ties to the conflict currently 
reject this arrangement, 
although they initially sig- 
nalled acceptance. 

The apparent agreement 
took place in the shadow of a 
clash over Bosnia between the 
U$ and Russian legislatures 
over which side in the conflict 
should be allowed to receive 
weapons shipments. 

The Russian parliament yes- 
terday urged President Boris 
Yeltsin to lift the arms 
embargo against Serbia unilat- 
erally if any other country 


began sending anus to Bosnia. 
This was an angry response to 
a US Senate resolution sup- 
porting sales to the Moslem 
leadership in Sarajevo. 

The state Duma, or lower 
house of parliament, voted 
270-1 for the resolution, which 
also told the Russian govern- 
ment to seek a negotiated end 
to all sanctions against rump 
Yugoslavia, which consists of 

Serbia awrf Montenegro. 

Sharp differences over how 
to make peace in Bosnia have 
left mediation efforts in some 
disarray. The US has backed 
the Moslems In their reluc- 
tance to sign an overall truce 
which would consolidate 
recent territorial gains by the 
Serbs. 

The Russians, and to some 
extent the west Europeans, 
want pressure on the Moslem 
as well as the Serb side to 
accept a territorial compro- 
mise. 

The Russian parliament's 
move, which does not bind the 
president but carries moral 


weight, was in response to a 
vote on Thursday in the US 
Senate, which called for a uni- 
lateral end to sanctions against 
the Moslem-led Bosnian gov- 
ernment 


By Robert Graham in Rome 

The new Italian government yesterday 
suggested priority would be given to 
privatisation and reducing the state’s 
dominant role, in a government pro- 
gramme due to be delivered to parlia- 
ment on Monday. 

These objectives were outlined yester- 
day by Mr Gianni Letta, the chief of 
staff of Mr Silvio Berlusconi, who was 
sworn in as prime minister last 
Wednesday, after a cabinet meeting 
that studied the broad programme. 


The programme has been put 
together only during the past week and 
it remains to be seen how many of the 
items hum the election programmes of 
the three mam partners in the Freedom 
Alliance have been adopted. 

However, the emphasis on privatisa- 
tion and tax reform underlines the 
main platform of both the populist 
Northern League and Mr Berlusconi's 
Forza Italia movement Another prior- 
ity will be tax reform. 

To stress the importance of tax 
reform, Mr Letta saM the Enam-p min- 


istry had been given three junior minis- 
ters instead of the usual two. 

The cabinet meeting also approved .17 
junior ministers. The list shows a deli- 
cate balance between the need to pla- 
cate the various parties in Mr Berlus- 
coni's alliance and the need to find 
technically competent people to back 
up an inexperienced ministerial team. 

The neo-fascist MSI/Nfltfonal Alliance 
has been awarded 12 junior ministries 
on top of Five ministerial portfolios. 
This represents the culmination of the 
MSrs remarkable political advance 


after four decades of being regarded as 
a pariah. 35 

Mr Berlusconi's Forza Italia is 
sented by 13 junior minister, incfa3J» 
a pro-European Fora Ifalk swatjT?! 
former journalist, Mr Iivto Capote S: 
will be in direct charge ofRurna*! 
policy. 

The League, although having th» 
most parliamentary seats, wssawaifej 
only 10 junior ministries. But tS 
reflects Mr Berlusconi's view that 
League already has its prize, the faS 
rior ministry. 


Washington and Moscow closer Government and council plan to rehouse all shanty-dwellers 

to open confrontation over Bos- 

nia, with emotion running 


high in both capitals- Support- 
ers of the Bosnian government 
in Washington say it has been 
unfairly deprived of the chance 
to defend itself against a vastly 
better armed enemy. 

Even wi thin the EU, there 
has been a struggle to coordi- 
nate policy over Bosnia. The 
establishment of a contact 
group in which the EU was 
represented only by Britain. 
France and Germany caused 
intense irritation In Italy and 
Greece, which now holds the 
BITS rotating presidency. 

As a compromise, yester- 
day’s meeting in Geneva was 
also attended by Greece and 
Belgium, the current and pre- 
vious holders of EU chair. 


Europe’s 

changing 

cities 


IMF team | Rumours push 


to begin 
visit to 
Venezuela 

By Joseph Mann In Caracas 

A team from the International 
Monetary Fund is scheduled to 
begin a two-week visit to 
Venezuela on Monday, just 
asthe country's international 
monetary reserves have fallen 
sharply and the government 
has restricted the sale of for- 
eign exchange to the public. 

Mr Julio Sosa, Venezuela's 
minister of finance, said the 
government’s liquid reserves 
stood at more than $3bn (£2bn) 
and it would be “precipitate” 
to HhmM a standby arrange- 
ment with the IMF now. Mr 
Fernando Egan a, an aide to 
President Rafael Caldera, who 
took office In February, said 
the IMF team's visit was a reg- 
ularly scheduled one. 

But Mr ^Miguel Rodriguez, 
minister of planning and presi- 
dent of Venezuela's central 
bank under the government of 
President Carlos Andris Perez 
from 1989 to 1993, tins week 
recommended that the govern- 
ment begin negotiating a 
standby arrangement with the 
fond immediately. 

Mr Rodriguez, the main 
architect of the Fdrez govern- 
ment’s free-market pro- 
gramme, criticised the central 
bank’s recent decision to 
establish daily auctions at 
which banks and exchange 
houses can buy limited vol- 
umes of US dollars. Venezuela 
has returned to this "abomina- 
ble” practice, while exchange 
controls have been abolished 
in other parts of Latin Amer- 
ica, he said. 

The auctions, which 
replaced open sales of dollars 
to the public and were meant 
to reduce sales of foreign i 
exchange, immediately led to 
the development of a dual-rate 
system. The differential 
between the central bank rate 
and the parallel market rate 
reached as high as 20 per cent 
In recent days. 

Venezuela eliminated a mul- 
tiple-rate exchange control , 
system in 1989, the same year | 
it initiated an extended agree- 
ment with the IMF which i 
expired in 1992. Breaking with 
recent practice, the central 
bank has not released com- 
plete figures on its interna- 
tional reserve position for the 
previous month. Gross 
reserves stood at tl2.5bn at 
the end of 1993, but fell by 14 
per cent during the first quar- 
ter of this year. 

Dollar sales by the central 
bank over the last several 
weeks are believed to have 
been unusually high, but no 
official information has been 
made public yet 


drachma down 


By Kerin Hope in Athens 

The Greek drachma came 
under strong pressure yester- 
day, losing ground against the 
D-Mark following rumours that 
the government plans to lift 
controls on short-term capital 
movement ahead of its July 1 
deadline. 

The market has been jittery 
for several days as reports 
emerged of discussions 
between central bank and 
economy ministry nffiriaia in 
preparation for lifting foreign 
exchange restrictions. 

The drachma closed at 
DM148.10, down from Drl47A 
the previous day. Dealers said 
it had cost the Bank of Greece 
some DM500m (£200m) to prop 
up the drachma yesterday after 
the German currency reached 
Record levels elsewhere in 
Europe on Thursday, when 
Greek markets were closed for 
a public holiday. 

Greece was granted an 
18-month extension on lifting 
all foreign exchange curbs in 
line with European Union 
rules. The main restriction still 
to be removed is a ban on 
drachma lending for periods 
of less than three 
months. 


The government is con- 
cerned about both speculative 
attacks a gainst the drachma in 
the run-up to July l and the 
possibility of a sudden capital 
outflow as soon as restrictions 
are lifted. 

It faces difficulties in financ- 
ing a rising public deficit. It 
currently has to raise more 
than Drl50bn each month 
through issues of short-term 
Treasury bills. Greece's public 
debt is the highest in the EU, 
at almost 149 per cent of gross 
domestic product 

However, a senior Bank of 
Greece official said yesterday 
that the July deadline was 
"still in place, with neither 
delays nor an early lifting of 
restrictions in sight”. 

The interbank three-month 
rate briefly touched 26 per cent 
yesterday, against 21.6 per cent 
on Wednesday. 

The timing yesterday of the 
central bank's announcement 
that it was imposing a 9 per 
cent reserve requirement on 
bank deposits held by public 
sector enterprises, in accor- 
dance with EU rules, contrib- 
uted to the overall anxiety. 

The Athens stock market 
was also affected; the index fell 
L74 per cent yesterday. 


US inflation rises 
less than expected 


By Michael Prowse 
In Washington 

Upward pressure on US 
infla tion remains subdued, offi- 
cial figures indicated yester- 
day. 

The consumer price index 
rose 0.1 per cent last month, 
less than expected. The annual 
rate of inflation feD to 2.4 per 
cent from 2.5 per cent in 
March. “Core” consumer prices 
- which exclude the volatile 
food and energy components - 
were also subdued, rising 0.2 
per cent last month and by 2.8 
per cent in the year to April. 


The figures followed an 
encouraging report on whole- 
sale price inflation earlier this 
week. Producer prices fell 0.1 
per cent last month, taking the 
year-on-year decline to 0.4 per 
cent 

Most economists, however, 
still expect the Federal Reserve 
to signal another increase in 
short-term interest rates next 
week following a meeting of its 
policy-making open market 
committee. A rate increase is 
seen as necessary to slow the 
rate of domestic growth and 
help stabilise the dollar in for- 
eign exchange markets. 


Dreams 
of leaving 
Lisbon’s 
slums 


Sleeping dogs, 
dead rats and 
i discarded 
syringes lie 
along the dirt 
paths leading 
into a forlorn 
_ neighbourhood 

of shanty dwellings and slum 
houses, sprawling across a Lis- 
bon hillside in the shadow of a 
multi-storey shopping centre, 
Peter Wise reports from Lis- 
bon. 

Young men question outsid- 
ers before admitting them to 
the rows of crumbling houses 
1 and dilapidated sharks made of 
I planks, plastic sheeting and 
corrugated iron. The only visi- 
tors they expect are the police 
or drug-takers looking for sup- 
plies. 

One long-standing resident, 
Mrs Maria Leonor. 32, lives 
here with her family of seven 
in a one-room dwelling made 
by her husband, a street ven- 
dor, for nailing rough pieces of 
timber to wooden struts. The 
city council gave them the 
boards and nails after a fire 
destroyed their previous 
shanty home in 1985. 

Mrs Leonor is out of work 
and has never learnt to read or 
write. She points up stone 
steps strewn with rubbish to 
the tap where she fetches 
water. Three men facing a 
nearby wall look round fur- 
tively as they inject them- 
selves in the forearms. 

This is Casal Ventoso, 
acknowledged by Portuguese 
officials as one of the worst 
slams in western Europe. Mrs 
Leonor's home is just one of 

38.000 shanty dwellings in Por- 
tugal, housing an estimated 

43.000 families. Most of them 
share one ambition: “I just 
want to move out into a home 
that is safe for my children," 
she says. 

Little has been done to alle- 
viate the plight of shanty 
dwellers since bairns de lata - 
"tin-can quarters" - first 
appeared in Portugal almost a 
century ago. But the centre- 
right government is now 
embarking on an ambitious 
Es270bn (£lbn) programme to 
eradicate shanty towns and 
rehouse their occupants before 
the end of the century. 

“The shanties prick at the 
conscience of the whole 
n ation.” says Mr Joaqunn Fer- 
reira do Amaral, minister for 
public works, transport and 
telecommunications. “No other 
country at the same level of 
development as Portugal suf- 
fers from this shameful prob- 
lem.” 

Under the plan, the govern- 
ment will pay for the construc- 
tion of new homes and local 
authorities, most of which are 
controlled by the opposition 



Lisbon slmndwellers: they dismiss as a sentimental myth the suggestion that they will miss the 
open-air life and community spirit if moved to blocks of flats. Frank spoon* 


Socialist party, will administer 
them and subsidise rents 
according to the occupiers’ 
means. Most shanty dwellers 
pay no rent and low, if any, 
utility bills. 

Migration from the rural 
interior to Lisbon and Oporto 
produced many of the existing 
bairros de lata in. the 1950s and 
1960s. Many of the workers 
who built Lisbon’s April 25 sus- 
pension bridge, which opened 
in 1966. still live in nearby 
shanty towns. 

Others, like Pedreiro dos 
Hungaros to the west of Lis- 
bon. are populated by immi- 
grants from Portugal’s former 
African colonies, mainly the 
Cape Verde islands. The atmo- 
sphere is more convivial here 
than in Casal Ventoso, but con- 
ditions are just as bad. 

Several factors foment the 
building of shanty towns. Por- 
tugal has no pool of low-rent, 
state-owned housing. The pri- 
vate rent market was under- 
mined by a 40-year rent freeze 
that discouraged owners from 


renting out properties and is 
only now slowly being re-ani- 
mated- And taxes amounting 
to more than half the cost of a 
house help put buying a home 
beyond the reach of many low- 
wage earners. 

More than 5,000 shanty 
dwellings have been destroyed 
in Lisbon since a coalition of 
Socialists and Communists 
won control of the city council 
in 1989. This month, the gov- 
ernment and the council 
agreed on a Es72bn programme 
to build 11,129 houses to 
rehouse all the famili es in the 
city still living in shanty 
towns. 

Most will be moved into 
apartment buildings. And sur- 
veys among residents dismiss 
as sentimental myth the opin- 
ion that they will miss the 
open-air life, vegetable plots, 
chicken runs and community 
spirit of the bairros de lata. 
"We’re not aware of a single 
person who would rather stay 
in a shanty town than move 
into a flat,” says Mr Vasco 


Franco, the Lisbon city coun- 
cillor responsible for the 
rehousing programme. 

But Mr Franco fears that the 
pressures that led to the 
growth of the shanty towns 
will continue and possibly 
increase. Many construction 
workers will be attracted to the 
capital by an extensive infra- 
structure programme, includ- 
ing the building of a new 
bridge over the Tagus river, 
the Expo *98 international exhi- 
bition and the housing pro- 
gramme itself. 

The city council demolishes 
every new shanty dwelling 
that appears, currently at a 
rate of four of five a day. But 
other forms of cheap accommo- 
dation are taking their place. 
"There are small apartments in 
Lisbon where up to 20 people 
sleep in rows of bunk beds, 
paying by the night' 5 says Mr 
Franco. "The only lasting solu- 
tion to the problem is for the 
state to invest in building & 
large pool of accessibly-priced 
homes." 


Turkey under fire as UN confirms refugee claims 


By John Murray Brown 
in Ankara 

The Turkish government was 
yesterday criticised by Kurdish 
MPs, after the United Nations 
confirmed reports that several 
thousand Kurdish villagers 
had crossed the border into 
Iraq, in the wake of a heavy 
government onslaught against 
the separatist Kurdistan Work- 
ers party (PKK). 


Mr Selim Sadak, MP for Sir- 
nak in Turkey’s Kurdish heart- 
land, writing to the interior 
minister. Mr Nahit Mentese, 
demanded a government inves- 
tigation of allegations or bomb- 
ing by Turkish military air- 
craft of Kurdish villages in 
which he claimed at least 48 
people were killed. The govern- 
ment said earlier that a bomb 
had been dropped by accident 
The incident underscores the 


violent escalati o n in the fight- 
ing, with more than 4,000 guer- 
rillas, soldiers and civilians 
killed in the past year. 

The UN. contacted in Bagh- 
dad yesterday, confirmed that 
around 800 families were being 
given temporary shelter and 
food near the border town of 
Zakho, complaining of harass- 
ment by Turkish troops. 

The Turkish government has 
dismissed the situation as a 


PKK propaganda ploy. Foreign 
ministry spokesman Ferhat 
Ataman vehemently denied 
eyewitness reports that vil- 
lages were being deliberately 
targeted by security forces. 

The PKK has Increased 
attacks against targets in west- 
ern Turkey in recent months, 
including the killing of five off- 
duty Turkish army conscripts 
in Istanbul. This, more than 
any other recent incident, has 


inflamed public opinion 
against the Kurds. 

The intensified conflict is 
causing concern in western 
capitals. The German foreign 
minister, Mr Klaus Kinkel in a 
German magazine last week, 
said the Conference on Secu- 
rity and Co-operation in 
Europe should convene a con- 
ference on the Kurdish prob- 
lem. Scandinavian countries 
have more than once called for 


CSCE monitors to go to the 
south-east. For the first time, 
the US is calling on Turkey, its 
Nato ally, to find a political 
solution to the problem of the 
lOm-strong Kurdish minority. 

However, in. the wake of 
recent escalations in the vio- 
lence, Mrs Tansu Ciller's gov- 
ernment has hardened its 
view, abandoning the political 
initiative to win over moderate 
Kurds by democratic reforms. 


US World Cup planners await the barbarian hordes 

gj 1 LS h ^f Pan 1 Jursk Martin prepares for his past to be scrutinised as the walls go up the wooden shoes that cut off t] 

AWr . e ‘ _ aot O XT circulation to thpir hrainc V; 


The World Cup is 
still a month off and 
^ ^ English are not 

com * n &’ but already 
the US, a nation not 
unfamiliar with violence, is batten- 
ing down the hatches against soccer 
mayhem. 

A series of solemn annom cemen fe 
from the organising committee has 
given the impression that the US 
fears the worst. Much ridiculed and 
probably widely to be disobeyed, 
they include: 

• The erection of riot fences separ- 
ating the crowd from the field of 
play at several venues, including the 
rFK Stadium in W ashing ton , home 
of the American football Redskins. 

• Tight restrictions on the sale of 


alcohol before and during matches, 
with a two-beer limit per customer, 
no vendors walking through the 
seats and no sales after half-time. 

• Reporters must sign a waiver per- 
mitting background investigations 
by the FBI and other law enforce- 
ment agencies, without which they 
will not get necessary credentials. 
The intent, apparently, is to root out 
terrorists with press passes, though 
the effect may be to reduce media 
coverage to even lower visibility. 

The domestic response has ranged 
between fury and amusement. Sev- 
eral prominent US news organisa- 


tions have mounted the high civil 
liberties horse and said they will 
have no truck with the waiver (your 
FT correspondent, a known profes- 
sional agitator, signed the waiver 
confident that his tracks were well 
covered). 

The managers of RFK stadium 
said they would stick with their 
standard alcohol sale policy, which 
is liberal. A Reds kins game tradi- 
tionally features extended parking- 
lot “tailgate” parties before kick-off, 
followed by a mad scramble to beat 
the traffic jams afterwards. 

Sporting violence is not unknown 


in the US, even in baseball, the cere- 
bral sport, but it is mostly confined 
to players and to fan celebrations 
which get out of control after a team 
has won a championship. Comfort- 
able all-seat stadiums, with some- 
times decent food and drink, tend 
not to stir crowd's blood beyond a 
bit of yelling and Mexican waving. 

Soccer's bad reputation, however, 
is not confined to stories from 
abroad. In California, a schools 
league this year banned the tradi- 
tional post-game handshake between 
players because the ceremony often 
degenerated into the trading of spit- 


ting. insults and fistflghts. 

Only the other day, the Washing- 
ton Post reported that the coach and 
most of a focal suburban high school 
team had been suspended after get- 
ting into a brawl with a visiting Rus- 
sian side towards the end of a partic- 
ularly foul-filled match. 

But the last word in ridicule on 
the riot fences was surely provided 
by the Post's Tony Komheiser 
“Why not a moat, stocked with pira- 
nhas?" he asked. “Or heads up on 
spikes?" 

Of course, he understood that the 
terrible foreigners due to play in DC 


were different WUh the Dutch “it’s 
the wooden shoes that cut off the 
circulation to their brains. . . Van 
Gogh sliced off bis ear at a soccer 
game". The Norwegians "go berserk 
all tbe time in the summer" from 
“hormonal rush”, having spent the 
rest of the year frozen. 

The "phlegmish” Belgians “will 
probably sell us poisoned waffles". 
When the Saudis riot "they daim it’s 
a religious experience”. The Italians 
“anise our streets indiscriminately, 
pinching women and weepily sing- 
ing opera”. Now the Mexicans have 
“got money from Nafta, they'll get 
here and go crazy". 

The fence. Mr Komheiser con- 
cluded, “is a bad symbol and a bad 
idea. Dump it” 


Mexican 
rivals 
debate on 
television 

By Dwntei Frsaar 
InMoxSooCfty 

The first televised presidential 
campaign debate in Mexican 
history was watched fay an 
estimated 30m viewers - ntf 
delivered a victory for the 
least known of the three main 
candidates. 

Yet the mere fact that the 
leading contender, from the 
party which has governed fee 
country for 65 years, shared 
the podium In Thursday 
nights debate with tbe opposi- 
tion was considered a turning 
point for the country^ politi- 
cal system. 

The candidates In the 
August election generally 
agreed on the issues confront- 
ing Mexico. They discussed 
corruption, poverty, the dis- 
credited legal system, foe need 
for more democracy, and fas- 
ter economic growth. 

They exchanged insults, 
offered different solutions, hot 
overall eschewed radical poli- 
cies and sought to identify 
themselves with the political 
centre. 

Mr Diego Ferndndez de Cev- 
allos, the candidate of the era- 
tre-right National Action 
party, emerged as the dear 
winner, Mr Ernesto Zedillo of 
the governing Institutional 
Revolutionary party (PRO in 
second place; and Mr Cuuhb- 
Anoc Cftrdenas of the Party of 
Democratic Revolution as foe 
loser, according to the tele- 
phone polls conducted for Mnl- 
tivislon, a pay TV station, 
Telemnndo, a US Spanish lan- 
guage station. Reforma, an 
independent newspaper, and 
for Economists, a financial 
daily. 

Such polls have to he treated 
sceptically, in part because 
only the relatively well-off, 
who are probably less inclined 
to back Mr Cdrdenas, have 
telephones. But the low sup- 
port for him coincided with 
the view of most Independent 
analysts that the PRD candi- 
date failed to impress in Us 
honr-and-a-half before the 
cameras. 

Mr Fern&ndez de CevaHos‘8 
success may be foe best rat- 
come for the PRL It suggests 
that he can prevent the opposi- 
tion vote coalescing around Mr 

Cardenas and may even over- 
take him as the main ©ppod- 
tion candidate. Mr Cardenas 
came dose to winning tbe 1KB 
presidential election, and Us 
attacks on the PRI and lack of 
democracy have damaged the 
party's legitimacy at home and 
abroad. The PAN has gener- 
ally co-operated with the ERL 
Mr FernAndez de Cevafios is 
a trial lawyer by profession, 
and proved the most engaging 
and natural speaker, the most 
willing to depart from M b pre- 
pared text, and most effective 
at attacking foe other candi- 
dates, especially Mr Cdrdenas. 

Mr Zedillo, was less adepts 
debate and at times appeared 
stiff and setf-wosdons. B athe 
offered a dear and coherent 
view of the policies he would 
implement ^ 

While Mr C&rdenas swgtt 
to come across as moderate 
and reasonable, he was per- 
ceived by many as being too 
critical, and as the least artic- 
ulate of the candidates. 


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FINANCIAL TIMES WEEKEND MAY 14/MAY 15 1994 


NEWS: INTERNATIONAL 


Singapore takes modem message to China 

Tony Walker and Andrew Gowers visit what Lee Kuan Yew hopes will be his lasting monument 



S ingapore under the rule 
of Mr Lee Kwan Yew has 
drawn inspiration from 
ancient Chinese traditions of 
diligence and filial obedience: 
now the island state is in the 
process of giving back to 
modernising China some of the 
lessons it has learned in its 
transformation from British 
colony to modem regional cen- 
tre of commerce and industry'. 

m marshy land about 80 kilo- 
metres west or Shanghai, near 
the scenic town of Suzhou, 
work began this month on one 
of China's most ambitious pro- 
jects - a US$20bn (£13.6bn) 
Singapore-Suzhou industrial 
park designed to serve as a 
model for other such projects 
throughout the country. 

This •‘super-development” 
zone, in which Singaporean 
institutions will be sharehold- 
ers, will cover about 70 sq tan. 
and in many respects will be a 
giant replica of Jurong, Singa- 
pore's largest industrial estate. 
Jurong bouses some 2,000 com- 
panies and is regarded as one 
of J '-e jewels in Singapore's 
industrial crown. 

Responsibility for guiding 
the project has been vested in. 
Singapore-Suzhou Township 
Development (SSTD), which 
was incorporated in Singapore 
last September with authorised 
capital of $300m; SSTD is form- 
ing a joint venture with a con- 
sortium of Suzhou companies 
and the Phinefip government to 
implement the project 
Mr Zhao Da Sbeng of the 
Singapore-industrial park's 
preparatory committee said, 
with the Chinese love of ani- 
mal metaphors, that, while 
Shanghai might be the head of 


China's economic dragon, 
Suzhou and surrounding areas 
were the neck supporting the 
head. 

Mr Zhao has a point, one 
that has not escaped the Singa- 
pore authorities who have 
secured for themselves a sub- 
stantial foothold in China’s 
fastest-growing region in the 
Yangtze river delta. Singapo- 
rean companies and their 
international partners will cer- 
tainly benefit from Singapore's 
involvement in the project 

“We believe," Mr Zhao said, 
"that Singapore’s leaders are 
very good strategists.'’ 

Mr Lee Euan Yew has him- 
self taken a close interest in 
file project and was a cosigna- 
tory in Beijing in February this 
year of the govemment-to-gov- 
ernment agreement pledging 
official backing. 

The Singaporean push into 
China is also a sign of 
strengthening bonds with over- 
seas Chinese communities. It is 
doubtful that China, with its 
sensitivities about foreign con- 
cession areas dating from its 
pre-revolution experience, 
would have countenanced such 
an industrial park managed by 
“foreigners” if they were not 
overseas Chinese. 

Japanese corporations, 
according to Mr Zhao, had 
asked if they could participate 
in the establishment of the 
industrial park, but had been 
politely told no. 

China, for its part, makes no 
secret of the fact that it is seek- 
ing to utilise Singaporean 
experience and know-how in 
its efforts to make best use of 
foreign investment No less a 
figure than Mr Deng Xiaoping, 


China’s senior leader, said in 
1992 of Singapore that “we 
should tap their experience, 
and learn how to manage bet- 
ter than them". 

Managers of the new park 
have certainly set themselves 
an ambitious task in their 


plans to transform paddy ffeiHc 
and a polluted lake into an 
estate that would include both 
light-industry facilities, retail 
malls, a financial district and 
residential complexes, not to 
mention at least one golf 
course. 

About $100m has been set 
aside for infrastructure costs of 
developing the first 2-sq-km 
stage of the project’s Phase 
One of the three-phase project 
The organisers pl an initially to 
build 90.000 sq m of standard 


workshops and some 60,000 sq 
m of bousing with shopping 
facilities. 

Mr Zhao said the early 
response from international 
business had been positive. 
an d German nronpanfes m par- 
ticular have been taking a 


close interest In the project. 
Among attractions for German 
companies engaged in the man- 
ufacture of vehicle components 
is that Volkswagen’s main 
China assembly works is 
nearby. 

Interestingly. German com- 
panies had asked whether a 
section of the park could be set 
aside exclusively for their use. 
Mr Than indicated tha t, “if the 

price was right”, this proposal 
would be looked upon favoura- 
bly. 


Light industries likely to 
find a home in the park 
include telecommunications, 
pharmaceuticals, electronics 
and environment protection 
equipment. Foreign retailers 
have also been told they are 
welcome, along with foreign 
hanks 

When the park is completed 
in 2006. its resident population 
is expected to number 600,000, 
but Mr Zhao insists that resi- 
dential and industrial develop- 
ment will be balanced care- 
fully. 

“We don’t want a situation 
like Shenzen (the booming 
development zone adjacent to 
Hong Kong) where the popula- 
tion jumped from 100,000 to 
one million in a few years," he 
said. 

Among Singapore institu- 
tions involved in planning and 
implementation are the Jurong 
Town Corporation, Housing 
and Development Board. Minis- 
try of the Environment, Public 


Works Department, Urban 
Redevelopment Authority and 
Public Utilities Board. 

The TOsq-km zone will offer 
much the same tax-breaks as 
the Economic and Technologi- 
cal Development Zones 
(ETDZ’s) of China’s coastal 
cities. These include tax-holi- 
days and other concessions 
such as a 40 per cent tax rebate 
on profits reinvested within 
the township. 

Leases on property will be 
more expensive than other 
development zones, but lease 
periods will be long. For resi- 
dential property. 70-year leases 
are being offered; for industry, 
50 years; for commerce, 40 
years. 

Singaporean participation 
among private-sector compa- 
nies and government institu- 
tions reads like a who’s who of 
Singapore’s business. Among 
those involved include Keppel 
Corporation, the leader of the 
consortium, which is a S7bn 
company involved in ship 
repair, property, engineering 
and financial services. 

Others include property com- 
panies like Singapore Land and 
City Developments, and invest- 
ment groups, among them 
Temasek Holdings, the Singa- 
pore government’s investment 
holding company, and National 
Trades Union Congress Co-op- 
eratives, the investment arm of 
Singapore’s largest labour 
organisation. 

Mr Lee Kuan Yew may not 
have returned physically to the 
land of his ancestors, but he is 
doing his best to ensure that a 
monument to his memory will 
survive long after he departs 
the scene. 


The development zone, will be a 
giant replica of Singapore's Jurong 


Asia urged to 
fight money 
laundering 


By Victor Mallet in Bangkok 

Industrialised nations are 
urging Asian governments that 
supervise fast-growing finan- 
cial sectors to join the fight 
against money laundering, 
according to members of a task 
force established by the Group 
of Seven countries. 

Mr John Gieve, president or 
the Financial Action Task 
Force on Money Laundering 
(FATF) and under-secretary at 
the UK Treasury, announced 
yesterday that Malaysia had 
agreed to host a conference on 
money-laundering for the 
region's financial and legal 
officials in November, follow- 
ing a seminar in Singapore last 
year. 

“If money laundering is to be 
combatted effectively, action 
needs to be taken at the widest 
possible International level, 
particularly in countries which 
are becoming increasingly 
important as financial cen- 
tres," he said in Bangkok. 

“A major part of our work 
is therefore now concerned 
with the adoption of anti- 
money laundering measures by 
non-member countries." he 
said. 

Money laundering and drugs 
are the subjects of heated 
debate in Thailand at 
present 

This week the US announced 
that Mr Thanong Siripreecha- 
pong, a Thai opposition mem- 
ber of parliament, had been 


charged with smuggling tonnes 
of marijuana into the US. The 
Thai government says it is con- 
sidering introducing anti-la un- 
dering legislation to help curb 
the drugs trade. 

Several Thai politicians are 

suspected of involvement in 
drug smuggling, and the 
Golden Triangle where Thai- 
land. Burma and Laos meet is 
notorious for opium-growing 
and heroin production. 

The 26-member FATF 
already includes representa- 
tives from regional financial 
centres Japan, Australia, Sing- 
apore and Hong Kong. FATF 
officials are hoping to persuade 
other countries, including 
Taiwan, South Korea, Thailand 
and eventually China to intro- 
duce anti-laundering laws; typ- 
ically such laws make money- 
laundering a criminal offence, 
allow suspicious flows of 
money to be traced through 
the banking system, and pro- 
vide for the confiscation of 
assets. 

Mr Gieve and his colleagues 
said that even if commercial 
banks feared tbe expense of 
implementing such legislation 
and had concerns about bank- 
ing privacy, experience in 
countries such as Switzerland 
showed that anti-laundering 
rules were workable and 
enhanced the reputation of the 
financial centres applying 
them. 


Only a handful of races are open to outsiders 


Impossible hurdle for 
foreign horses in Japan 


By Michiyo Nakamoto in Tokyo 

Sumo, Japan’s national sport 
has its foreign stars, and most 
of the country’s soccer stare 
are imported. But in the world 
of horse-racing, tbe foreign- 
bred steed is stfil shut out from 
most events. 

Tomorrow, five foreign 
horses will run in the Yasuda 
Klnen race in Tokyo, one of 
just a handful of races in 
Japan that are open to horses 
from abroad. 

It will be closely watched, 
both for the money riding on 
tbe horses and for the impact 
on the industry, which wants 
to keep the hurdles high for 
foreign horses. 

The bets are that one of the 
five will beat Japan's best for 
the Y94m (£618,400.00) first 
prize, confirming horse breed- 
ers’ worst fears that opening 
more of the country’s races to 
non-Japanese thoroughbreds 
will lead to foreign domination 
of a home-grown industry. 

In spite of pressure from 
abroad, only five of the more 
than 3,400 horse races held in 
Japan each year are open to 
foreign horses. Even in those 
five races, the number of for- 
eign participants is strictly 
restricted, and only 5 of the 15 
or so horses running in the 
Yasuda Kinen are non-Japa- 
nese. 

In the case of sumo, tradition 
provided a reason for some offi- 
cials to put obstacles in the 
path of foreign wrestlers. But 
Japanese opposition to opening 


horse racing to foreign compe- 
tition stems from economic 
vested Interests that have been 
used to defend other Japanese 
markets, such as rice. 

Not only are foreign horses 
highly competitive, they are 
about 30 per cent cheaper to 
raise than Japanese horses. If 
more races are open to 
imports, local horses will win 
fewer awards and their market 
value will fall, damag in g the 
breeding industry, according to 
the Japan Racing Association. 

Only five out of 
3,400 races 
accept foreign 
throughbreds 

The Keio Hai spring race last 
month which was open to for- 
eign horses for the first time 
this year, helped to fuel those 
fears. The four horses partici- 
pating from abroad easily filled 
the top four positions. “Like 
agricultural products, Japa- 
nese horses cannot compete 
with foreign ones in terms of 
costs." says Mr Keiji Matsuo, 
an official at the Japanese 
thoroughbred breeder’s associ- 
ation. which has 2,353 mem- 
bers. 

At stake is a total of up to 
YlOObn in award money that 
goes to the top five winners in 
Japanese horse races. 

Horsebreeders are particu- 
larly concerned that Japan’s 
co mmi tment under the Uru- 


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guay Round agreement to 
gradually lower its tariffs on 
imported horses will hurt 
domestic breeders. The tariffs, 
of Y4m per horse, which have 
been a major obstacle to for- 
eign horses participating in 
Japanese races, are being 
reduced by 15 per cent or about 
Y3.4m by the year 2000. 

But Japan's horseracing 
industry is finding it difficult 
to beat tbe forces for change. 
The JRA has launched an 
eight-year internationalisation 
programme triggered not so 
much by foreign pressure, but 
by strong interest among Japa- 
nese horseracing fans to see 
more foreign horses running in 
national races. 

“There are some very high 
grade horses running in Sun- 
day’s Yasuda Kinen and I am 
expecting it to be a very excit- 
ing race," says Mr Naoto 
Hashimoto. a Tokyo business- 
man who is a keen horse rac- 
ing fan. The race will feature a 
thoroughbred owned by Sheikh 
Moh amm ed of Dubai, two 
French horses, one from the 
UK and one from Hong Kong. 

Mr Hashimoto believes that 
competition from imported 
horses will help raise the level 
of Japanese horee rac ing. 

"Japanese horses have only 
competed among themselves, 
with other horses of the same 
level," he says. “Competing 
with foreign horses at home 
will raise the competitiveness 
of Japanese horses, which 
could help them to compete 
more successfully overseas." 


Tokyo to 
send trade 
delegation 
to US 

By William Dawkins In Tokyo 

The Japanese government 
plans to take a first step 
toward restarting trade talks 
with the US by sending a dele- 
gation of senior officials to 
Washington next week. Mr 
Eijiro Hata, the new minister 
for international trade and 
industry, yesterday confirmed 
that a delegation of vice minis- 
ters - the most senior grade of 
civil servant - will go to 
Washington to discuss trade. 

This follows a phone call by 
Mr Tsutomu Hata, the prime 
minister (unrelated to Miti's 
Mr Hata) to US president Bill 
Clinton this week, in which 
they agreed to resume negotia- 
tions. Mr Walter Mondale, US 
ambassador to Japan, followed 
this with a visit to MW’s Mr 
Hata and Mr Koji Kakizawa, 
the foreign minister. 

The Mid minister did not 
specify which departments - 
likely to be Miti and the for- 
eign ministry - would form 
the delegation or if they would 
have any specific proposals to 
break the deadlock reached in 
February, when Mr Clinton 
and former prime minister 
Morihiro Hosokawa agreed to 
disagree over US demands for 
t a rgets for increased imports. 

The new Japanese govern- 
ment yesterday showed some 
evidence of the fresh pragma- 
tism attributed to it by sailor 
US officials, when Mr Kaki- 
zawa told parliament that 
“some kind of criteria” were 
needed to measure progress. 


Report to Miti 
urges delaying 
plutonium use 


By Waaam Dawkins in Tokyo 

A government panel is to 
propose that Japan delays 
ambitious plans to increase its 
use of plutonium as a nuclear 
fueL 

The suggestion, to be pres- 
ented to the Ministry of Inter- 
national Trade mid Industry 
next month for consideration 
as official policy, comes in 
response to growing domestic 
and international concern over 
a surplus of plutonium, a 
highly toxic fuel that can be 
used for nuclear weapons. 

An interim report, by the 
advisory committee for energy, 
calls for construction of a sec- 
ond plutonium powered fast- 
breeder reactor to be delayed 
from, the end of this decade to 
early next, according to details 
leaked by officials. It suggests 
that plans for a second fuel 
reprocessing plant - which 
extracts plutonium from spent 
fuel - should be suspended 
until well beyond 2010- 

Japan’s first prototype fast- 


breeder, named Monju, based 
on the west coast, began a 
self-sustaining reaction last 
month, using plutonium fuel 
produced at reprocessing 
plants in Britain and France. 

Its first reprocessing plant, 
at RoKkasho-mura in northern 
Japan is due to start 
operations at the end of the 
decade. A second Japanese 
reprocessing plant was due to 
open in 2010, but the panel 
says that a construction sched- 
ule should not be decided until 
then, implying that it could 
not start operating at least 
until 2020. 

A decline in prices for ura- 
nium, the fuel used in conven- 
tional nuclear power stations, 
has weakened the economic 
argument for plutonium 
fuelled fast breeder reactors, 
said an official at the govern- 
ment’s agency of national 
resources and energy. How- 
ever, this would only be a tem- 
porary delay in long term 
plans to increase Japan’s use 
of plutonium. 


Mitsubishi, Proton in Vietnam deal 


By Ksvtn Done, 

Motor industry Correspondent 

Mitsubishi Motors and Proton, the 
Japanese and Malaysian carmakers, have 
received approval by the Vietnamese gov- 
ernment to form a joint vehicle mannfac . 
taring and sales venture in Vietnam. 

The new company, Vina Star Motors, 
will be owned 25 per cent each by Mitsubi- 
shi Motors, Mitsubishi Corporation, Proton 
and Vletranschnex, a Vietnamese natinnai 
company. 

Mitsubishi Motors is the first Japanese 
carmaker to enter a joint venture 


in Vietnam. 

The new company will be located in Ho 
Chi Minh City, and will have an initial 
equity capital of $12m. which will be 
increased ater to $16m. 

Total investment in tbe project is expec- 
ted to rise to SSOm. 

Vina Star will assemble the Mitsubishi 
Delica minibus with production scheduled 
to start in March next year. 

Output is planned to rise 5,000 units a 
year in tbe first stage and later to 12,000 a 
year. 

Proton, in which Mitsubishi holds a 
minority stake, said that the joint venture 


would eventually be expanded to include 
the assembly or Proton cars in Vietnam. 

Meanwhile, Reuter reports that Mitsubi- 
shi Motors has agreed with Mitsubishi 
Corporation and Malaysian and Chinese 
concerns to make a feasibility study of 
possible cooperation to develop the Chi- 
nese car industry. 

The Chinese concerns are the state- 
owned China North Industrial Group, 
China Aerospace Corp and Aviation Indus- 
tries of China, the company said. A Malay- 
sian government investment institute and 
a Malaysian private bank were also 
involved. 


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FINANCIAL TIMES WEEKEND MAV U/MAY IS \<m 


Esso oil 
is to 

reappear 
in India 


By Richard Tomkins in New 
York 

Esso oil is to reappear in Tnrfia 
after an absence of 18 years 
under a deal reached yesterday 
by Exxon, the US oil company 
that owns the Esso br and, and 
Hindustan Petroleum of rn ffl a. 

The two companies have 
signed a licensing and market- 
ing agreement that will allow 
Hindustan Petroleum to blend 
and market Esso lubricants 
and other speciality products 
in India. 

Exxon, which uses the Esso 
trademark for Its products out- 
side the US, pulled out of India 
partially in 1974 and com- 
pletely in 1976 because of the 
adverse economic and political 
climate then prevailing. 

Since then, the Indian gov- 
ernment has taken steps to lib- 
eralise its markets. Last year it 
approved investment plans by 
severed western companies 
including Coca-Cola, the US 
soft drinks company, which 
returned to the country after 
an absence of 16 years. 

Exxon previously owned a 
refinery and a lubricant man u- 
Eaturing plant in Bombay and 
was the market leader in avia- 
tion and marine fuels. When it 
left, the facilities were bought 
by the Indian government mid 
are now owned by Hindustan 
Petroleum. 

Under the new arrangement, 
Exxon will use its refinery in 
Singapore - its largest in the 
Asia-Pacific area - to supply 
Hindustan Petroleum with the 
basic ingredients for a range of 
lubricants. Hindustan Petro- 
leum will blend them to 
Exxon’s specifications and sell 
them under the Esso name. 

Exxon’s presence in the 
Indian market will be rela- 
tively small compared to its 
position before 1976. But it said 
the move was significant 
because it would re-establish 
the Esso brand in India and 
provide a platform for a much 
expansion. 

Mr Kwa Chong Seng, chair- 
man and manag in g director of 
Esso Singapore, said market 
studies had shown that In dian : 
consumers had a strong aware- j 
ness of the Esso brand name. 1 


NEWS: INTERNATIONAL 


Palestinians have still not got their act together over a week after the peace deal 

Arafat struggles to name cabinet 


By Julian Ozanm in Jerusalem 

Ten days after the Middle East 
peace deal was signed Mr Yas- 
sir Arafat is still struggling to 
name the Palestinian national 
authority which will act as a 
de facto cabinet for self-rule in 
the Gaza Strip and Jericho. 

In choosing the 24-member 
authority the Chairman of the 
Palestine liberation Organisa- 
tion must carefully balance 
powerful famili es, different 
political factions, Christians 
and Moslems, men and women, 
the old and the young. 

Most difficult of all perhaps 
he has to bridge the deep gulf 
In attitudes between the exiled 
PLO leadership and those Pal- 
estinians from the occupied 
territories who have experi- 
enced 27 years of repressive 
Israeli occupation and who are 
suspicious of the ‘‘outsiders”. 
Many Palestinians hi the West 
Bank and Gaza believe the out- 
siders have become corrupt 
and distanced from the lives of 


ordinary Palestinians. They 
also fear that the Tunis-based 
exiles have little enthusiasm 
for the democratic ethos that 
has sprouted during the seven 
year uprising against Israel 

Palestinian, experts say con- 
sensus b uilding is a job Mr 
Arafat does best For a quarter 
of a century he has remained 
chairman of the PLO, surviv- 
ing military and political set- 
backs and often bloody inter- 
nal challenges. But he is 
clearly having great difficulty 
in naming the autho rity which 
should have been in place last 
Wednesday. 

PLO officials say several 
nominees like Mahmoud. Abbas 
(Abu Mazen), Farouk Kad- 
doumi gnd Jamal Sourani - all 
members of the l&atrong PLO 
executive committee - have 
flatly refused to join the 
authority . Mr Yassir Abed 
Rabbo, an important Arafat 
adviser and head of a small 
Palestinian faction based in 
Jericho, has not yet made up 






Ashrawi: “unavailable” 


Ahmed Qurie: in cabinet 


his mind. Many “insiders" 
have also been cautious about 
joining or have placed condi- 
tions on their acceptance. 

The reluctance of many PLO 
leaders to sit on the authority 
reflects widespread criticism 
inside and outside the West 
Bank and Gaza of the conces- 
sions Mr Arafat made in nego- 
tiating the peace accord. Many 
prefer to keep their bands 
dean of self-rule and position 
themselves for a possible 
future leadership challenge 
should Mr Arafat foil to deliver 
on the high expectations of 
Palestinians. 

The difficulties were demon- 
strated yesterday after Mr 
Nab il Shaath, a senior PLO 
official, announced an “offi- 
cial” list of IS appointees. Mr 
Samir Ghoshe, a PLO execu- 
tive committee member, and 
Mrs Hanan Ashrawi, former 
Palestinian spokeswoman, 
were on the list but both 
denied they would accept a 
post. Mrs Ashrawi said her 
plans to lead a watchdog on 
democracy, human rights 
corruption, remained 

imnhang ed 

A majority of the members 
will be “insiders” from the 
West Bank and Gaza. At least 
one woman ^ one Christian 
are on the authority. Several 
important families are repre- 
sented and Mr Arafat is care- 
fully picking people from dif- 
ferent parts of the West Bank 

and Og m to anmntmndata Hw 

strong feeling of local commu- 
nity in the territories. 

Mr Faisal Husseini, the bead 
of the powerful Arab East 
Jerusalem Husseini family , is 
on the list Mr Husseini hag 
said he wishes to have the 




Arafat hopeful 

portfolio of Jerusalem - the 
issue which has best shelved 
in the peace accord but which 
is the single most important 
iwin» to Palestinians. 

To appeal to the marginal- 
ised Christian community Mr 
Arafat has named Mr Elias 
Freij, the Mayor of Bethlehem 
who will he in charge of tour- 
ism - the sector Palestinians 
feel will develop quickly under 
self-rule. 

A particularly popular 
appointment is Mrs al- 

Wazir (Umo Jihad), the wife of 
Abu Jihad, the PLO’s former 
number two who was assassi- 
nated by Israeli commandos in 
1988. Abu Jihad, who was until 
his death in charge of military 
operations, is perhaps the most 
popular figure in the territo- 
ries. Since bis death Mrs ai-Wa- 
zir has been in charge of run- 
ning the PLO's welfare fund 
for Palestinian martyrs and 
their families and die will 
have the social welfare portfo- 
lio. 


Husseini: on the list 

Among the outsiders named 
so far axe Mr Ahmed Qurie 
(Abu Alaa), the PLO official 
who negotiated the secret 
peace accord in Oslo and the 
Israeli-PLO economic protocol 
and Mr Yasser Amr, a Jordan- 
based PLO Executive Commit- 
tee member. Mr Qurie is expec- 
ted to be in charge of econom- 
ics and relations with donors 
and Mr Amr will probably 
have the education portfolio. 

Those not yet named but 
expected to be on the authority 
include Mr Jawid-al Ghossein, 
a London- based businessman 
who has been in charge of the 
Palestine National Fund (PLO 
finance ministry ), and Gen 
Nasser Yousef. Mr Ghossein 
will have the flnanrw and Gen 
Yousef the police portfolios. 

Almost all those named to 
the authority are either from 
Mr Arafat's Fatah faction of 
the PLO or are close to the 
Palestinian leader. 


Israel to consider Mideast common market 


By James Harding 

Israel would consider the 
establishment of a common 
marke t in the Middle East in 
the next decade following 
infrastructure developments 
in the region, Mr Yossi Beilin, 
Israel's deputy foreign minis- 
ter, said yesterday. 

Mr Beilin, speaking to a 
group of UK financiers with 
interests in the recently 
launched Israel Fund Pic, 


emphasised the benefits of co- 
ordinated policies for energy, 
transport, telecommunications 
and water, but stressed that 
regional co-operation in these 
areas was a prerequisite for 
further integration. 

“In the next five years in the 
Middle East, with Palestine, 
Egypt, Jordan, Syria and Leba- 
non, we may see the building 
of a common in fr astr u c tur e. If 
we do, in the next 10 years or 
so we can look at foe possibil- 


ity of a common market” Mr 
Beilin said. 

Linking electricity grids is 
one initiative, crucial for fur- 
ther interdependence, which is 
under way. 

Mr Beilin argued that con- 
necting grids with Egypt and 
Jordan, and thereby joining 
wwting agreements with Tur- 
key and Iraq, would save 
Israel $7 00m pm* year because 
of the high costs of the coun- 
try's gas-fired electricity. He 


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also claims, however, that a 
regional agreement on elec- 
tricity coaid save all partici- 
pants as much as S4bn each 
year. 

Other developments advo- 
cated by Mr Beilin include an 
open skies policy ending “idi- 
otic restrictions” on air travel 
which had forced Israel to 
“live for so many years like an 
island”. Such a liberalisation 
in the movement of goods and 
people would, of course, have 


Africa’s 
lenders and 
borrowers 
fall out 


to be matched on the 
ground. 

The minister pointed oat 
that economic integration in 
the area would be of benefit to 
all hot easy for none. Vast dif- 
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CHRONICLE 


THE CITY INSIDE OUT 


By Lasfle Crawford, Africa 
Correspondent 

The African Development 
Bank's annual general meeting 
limped to a close yesterday 
with two central Issues unre- 
solved: the replenishment of 
the bank’s soft loan fund and 
the adoption of stricter lending 
rules to stem a haemorrhage of 
loan losses threatening the 
very survival of the bank. 

African member countries, 
which own two-thirds of the 
bank, baulked at proposals 
that would restrict AfDB loans, 
which carry market interest 
rates, to a handful of solvent 
governments. They asked for 
more time to consider new cre- 
ditworthiness guidelines. 

“Donor countries should not 
insist on pre-conditions that 
would inadvertently deny any 
category of countries access to 
the resources of the Bank 
Group-" Nigeria's central bank 
governor, Paul Ogwuma, told 
the meeting. 

However, Mr Barrie Hudson, 
leader of the British delega- 
tion, said the problem of 
arrears had arisen “because of 
the inherent risk of lending an 
terms that are too hard to 
countries with low per capita 
incomes and comparative eco- 
nomic fragility.” The AfDB is 
owed $700m on a disbursed 
loan portfolio of $8.4bn. 

The deadlock on who should 
be allowed to borrow, and on 
what terms, led donors coun- 
tries to suspend negotiations 
on the replenishment of the 
African Development Fund, 
which ran out of money last 
year. 

Mr Hudson urged the AfDB 
to set an income threshold 
below which countries could 
only qualify for concessionary 
funds. He said the UK would 
not provide more resources for 
the African Development Fund 
until the AfDB acted to 
Improve the quality of its pro- 
jects, its lending policies and 
the issue of governance. 

Mr Babacar Ndiaye. the 
bank’s Senegalese president, 
implied that donor countries 
had antagonised African gover- 
nors with their “take it or 
leave it” mentality, 
but he said he shared the con- 
cern of donor countries about 
the urgency to clear arrears 
and improving the quality of 
the bank's loan portfolio. 


By Michael Prowsein 
Washington 

The World Bank has approved 
an innovative $117 An loan to 
India to support cataract sur- 
gery aimed at restoring sight 
to more than 8m people by the 
year 2000. 

The loan illustrates a shift 
in the bank's development 
strategy towards projects 
likely to provide tangible ben- 
efits for poor and disadvan- 
taged people. 

“This loan marks a water* 
shed,” said Ms Maria Donoso 
Clark, manager of the bants 
cataract project Apart from 
the international effort to 
eradicate river blindness, a 
disease cause by parasites, this 
was the first project supported 
by a multilateral agamy spe- 
cifically aimed at combatting 
blindness. 

Redaring blindness would 
provide economic as well as 
social benefits because 25 per 
cent of people afflicted by cat- 
aracts were aged 45-60 and 
still productive. However, it 
was not a project likely to be 
financed by the private sector, 
she said. 

About a thfrd of an esti- 
mated global blind population 
of 35m live in India. About 
13m Indians are blind in both 
eyes, mainly because of cata- 
racts; a further 10m are blind 
in one eye. Indians, especially 
women and members of 
remote tribal populations, are 
thought to be especially prone 
to cataracts as a result of mal- 
nutrition and excessive expo- 
sure to the sun. 

The loan - provided by the 
International Development 
Association, the bank’s conces- 
sional arm - will meet 90 per 
cent of the cost of an Indian 
government programme to 
restore sight by treating a 
backlog of cataract cases. The 
project will involve recruiting 
and training about 360 sur- 
geons and about 1,700 nurses 
and other support staff. 

The project represents one of 
the largest collaborative ven- 
tures between the Indian cen- 
tral and state governments 
and the voluntary and private 
sectors. The bank credit will, 
for example, provide seed 
money to enable private oph- 
thalmic surgeons to establish 
practices In poor remote areas 
and urban slnmq. 


INTERNATIONAL news digest 


Zambia seeks 
to cancel debt 

Zambia hopes to caned SSOttm uf external debt owed to 
commercial banks through a buy-back scheme financed by the 
World Bank and bilateral donors, Mr Derek Musooda, Director 
of Loans and Investment at the Zambian Finance Ministry, 
said yesterday. Because Zambia’s debt paper is traded at a 
deep discount in the secondary markets, Mr Musonda said a 
S45m grant put together by the donor community would pur 
chase debt with a nominal value of 5900m (including $50Qm of 
arrears). “Our intention is to buy back our entire commercial 
bank debt stock totalling Sibn." Mr Musonda said. “This will 
reduce our total foreign debt to SSJttm,” 

The buy-back will alleviate Zambia’s debt-servicing burden, 
which currently consumes 40 per cent of the country’s export 
earnings. If the former socialist country manages to stick to 
its structural adjustment programme, Mr Musooda said Zam- 
bia hoped to ask the Kiris Club of creditor nations to write til 
a sig nificant portion of the country's bilateral debts next year. 
Zambia owes the Paris Club about half of the outstanding 
55.9bn; the remainder is owed to multilateral institutions ash 
as the World Bonk and International Monetary Fund, which 
do not allow rescheduling or debt forgiveness. Leslie Crmofyrd, 
Nairobi 

Spain joins interest cut round 

Spain yesterday joined the latest round of European interest 1 
cuts, with the central bank lowering its benchmark money 
rate by a quarter point to 7.5Q per cent. It was the fifth 
reduction by the Bank of Spain since the start of the year 
when the rate stood at 9 per cent The move, which brings 
Spanish interest rates to their lowest level since the mid-1970s, 
followed the Bundesbank’s rate reductions on Wednesday. 

Less positive news came with a disappointingly high 04 pa* 
cent increase in the consumer price index for April, the same 
as April last year. Accumulated inflation so far this year at LS 
per cent is already more than half the government's 3£ par i 
cent target for the whole year. The rate over the last 12 
months was -L9 per cent, fractionally down from 5 per cent in 
March. However, underlying inflation - leaving out volatile 
energy and fresh food prices - fell to 03 per emit last month, , 
half the rate of April last year, to stand at 4.8 per cent over foe ! 
12-month period. David White. Madrid. 

Danish retail sales pick up 

Danish retail sales volume in the first two months of the year 
rose by 5 per cent compared with the same months in 1993, i 
according to the official Statistical Office. The statistics con- 
firm a recovery of domestic demand long been predicted by 
the government 

New car registrations in April (they are not included in the 
retail index) increased by 53 per cent from last year to 13,442 
and for the first four months new car sales increased by 63J 
per cent 44,893, the highest level since 1987. Sales of heavy 
tracks, which is an indication that business investment is 
recovering; increased by 92J5 per cent to 3^83 in the first four 
months from last year. The Danish economy has endured 
seven years with an average GDP growth rate of 1 per cent 
The government, which has given a substantial boost, through 
fiscal policy, to demand this year, predicts a real GDP growth 
rate of 3 per cent, with private consumption increasing by 41 
per cent Hie government is expected to raise these forecasts 
in a report due next week. Hillary Barnes, Copenhagen. 

Rwanda rebel offensive halted 

The rebel offensive in Rwanda appeared to have stalled yester- 
day, despite heavy fighting in the countryside and new reports 
of ethnic massacres. UN officials said 88 students were found | 
hacked to death on Thursday at a school in Gikongoro in ' 
south-west Rwanda, and seven people were killed with 
machetes in front of the Red Cross building in Kigali. 

The lighting between the majority Hutus and minority Tut- 
sis in Rwanda has already claimed 100,000 to 200.000 lives in 
little more than a month, the UN and aid groups say. Most of 
the victims have been civilians. The UN Security Council 
plans to send up to 5,500 African troops to Rwanda to establish 
safe havens for civilians and assist relief workers. But it was 
unclear whether the troops would be allowed to -use force, how 
they would be financed and whether an arms embargo would 
be Imposed cm the warring parties. Agencies, Kigali. 

EU considers tourism impact 

European Union environment ministers discussed the effect of 
tourism, one of Europe's most profitable sectors, on the envi- 
ronment at an informal meeting yesterday. “There is a com- 
mon view that we need to face environment management as a 
whole in areas under tourist pressure," said Greek deputy 
minister for the environment Ms Elisavet Papazoi, who is 
presiding over the two-day meeting. 

Santorini, considered by many the most stunning of 
Greece’s Cycladic islands, served as a perfect backdrop for foe 
talks, not only because of its natural beauty but also the 
evident destruction that masses of travellers have brought to 
its once quiet townMs Papazoi said the main square of Fira, 
where the meeting will continue today, was a good example of 
bad catering for tourism, with its profusion of neon lights, 
electrical wires and traffic congestion. She said foe planned to 
propose Santorini, which also boasts a well preserved ruin of a 
city dating to 1450 BC. as the site for an EU pilot programme 
for sustainable developments. 

Reuter. Santorini. 

Australia defends military aid 

Australia’s federal government yesterday defended its right to 
provide additional military assistance to Cambodia, in its 
struggle with the Khmer Rouge guerrillas, despite reports of 
displeasure from officials in Thailand. Senator Gareth Evans, 
the foreign minister, 

said it was legitimate for the elected Cambodian govexment to 
seek assistance from the international community in order to 
maintain the country’s sovereignty and territorial integrity. 

Senator Evans said that the request was being seriously 
considered. Any decision would be taken after consultation 
with “other interested countries, including Thailand". Austra- 
lia did not view the security situation in Cambodia as "in any 
way alarming”. “In terms ot overall territory held, the situa- 
tion is not significantly different from when the latest cycle of 
military acitivity co mm e n ced some three months ago. NBdd 
Tait, Sydney. 


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FINANCIAL TIMES WEEKEND MAY 14/MAY 15 1994 



The General Motors Team proudly recognizes its 
1993 Worldwide Suppliers of the Year. 



1993 SUPPLIERS 
OF THE YEAR 

ABC Coke Div. of Drununoiid 
Co., Inc. 

Active Tool & Mfg. Co., Inc. 
Acumuladores Duncan de 
Venezuela 
Ajax Precision 
AKT GmbH & Co. KG 
Alfred Engelmann Ltd. 
AlliedSignal Automotive 
Alro Steel Corporation 
American G.F.M. 

Andreas Maier GmbH & Co. KG 
AP Technoglass Co. 

Ameses Electricos Automotrices, 
SAdeC.V 
August Lapple GmbH 
& Co. KG 
Autoliv Sverige AB 
Bardusch GmbH & Co. 

Beaverite Products, Inc. 

Blazer; Inc. 

BMG North America Ltd 
Borgers GmbH & Co. KG 
Bridgestone/Firestone 
de Mexico 
Briggs & Stratton 
BritaxVega 

Broad, Vogt & Conant, Inc. 

Buck & Hickman Limited 
Bundy International 
Calsonic International Ltd. 

CAPE Contracts Ltd 
Carello uben 
Carrera Corporation 
Cascade Engineering, Inc. 

Castrol Industrial, Inc. 

Challenge Manufacturing Co. 
Chemetall GmbH 
Cherry Corporation 
Cincinnati Milacron 
Cindumel-Cia. Industrial de 
Metais e Laminados 
Cirex 

Coating Consultants N. V 
Collins &Aikman 
Columbus Neunkirchen Foundry 
GmbH 

Consortium Dyckerhoff & 
Widmann AG/STRABAG 


Continental Gummiwerke AG 
CTS Corporation 
Dana Weatherhead GmbH 
Del-Met Corporation 
Deico Chassis Division 
Delco Electronics Corporation 
Deico Remy Division 
Draftex GmbH & Co. KG 
DSMN.V 
Durr Industries, Inc. 

Dynoplast A/S 
E&R Industrial Sales, Inc. 

Edag 

EDS 

Edscha GmbH & Co. KG 
Elth SA 
Emark, Inc. 

F+G Megamos 
Faital SpA 
Fichtel & Sachs 
Fort Wayne Foundry 
Corporation 

Fortney Eyecare Associates 
G.TD. 

Gail & Rice Productions, Inc. 
Gebr Hefler GmbH 
Gentex Corporation 
Georg Fischer 
Fahrzeugtechnik AG 
Gerhard Rauch GmbH 
Giddings & Lewis, Inc. 
Gillet-Leistritz Group 
Gonzales Design Engineering 
Goodyear Tire & Rubber Co. 
Halbeig Guss GmbH 
Harrison Division 
Hemmelrath Lackfabrik GmbH 
Henniges GmbH & Co. KG 
Hitachi 

Hoeschlndusa 
HP-chemie Pelzer GmbH 
Hubert Stuken GmbH & Co. 
Hiilsbeck & Furst GmbH 
& Co. KG 
Hutchinson 
IM.C.S.R.L. 

Iberofon Plasticso, S A 
ImatraKilstraAB 


INA Bearing Co., Inc. 

Industrial Services International 
Industrias Metalicas Asociadas 
(IMAL)SA 
Inland Fisher Guide 
Iroquois Die & 

Manufacturing Co. 

ITT Automotive 
Jervis B. Webb Co. 

Johnson & Johnson 
Kautex Corporation 
Kelsey Hayes Worldwide ABS 
& Controls Business Unit 
Kem Krest Division of 
Accra Pak Corp. 
Kolbenschmidt AG 
GB Gleitelemente 
KUKA 

Lemmerz Werke GmbH 

Lim Shang Hang 

Linde & Wiemann GmbH KG 

Litens Automotive Partnership 

Lobdell Emery 

LUK 

Lynwood Engineering Ltd. 

Magee Carpet 
Magna Intemational-Cosma 
Body & Chassis Systems Group 
Mallory Controls 
Manchester Plastics Ltd. 

Mandl & Berger GmbH 
Mann & Hummel GmbH 
MAPAL 

Marley Automotive 
Components Ltd. 

Matrici S. Coop. 
MattheyetCieSA 
Mays Chemical Co., Inc. 
McKechnie Vehicle 
Components 
Metallifacture Limited 
Metalsa, S.A. de C.V 
Monroe Australia Pty. Limited 
Monsanto 

Munoz Machine Products 
Nationwide Rubber Pty. limited 
Nemak, S A de C.V 
Niagara Machine Products 


Nippondenso Compressores Ltda. 
Olofstrom Automation Ltd. 

Omer Manufacturing 
Packard Electric Division 
Patricio Doi & Cia. 

Petri AG 
Plastic Omnium 
Polycom Huntsman, Inc. 
Precision Exhaust Ltd. 

Print Consortium 
Landstroem/Strokirks 
Rapid Design Service, Inc. 
Rassini, S A de C.V 
Rautenbach Guss Wemigerode 
GmbH 

Regional Die Casting Ltd. 

Robert Bosch GmbH 
Rockwell International 
Corporation 
Ronal Iberica S. A. 

Roth Freres sa 
ROULUNDS Fabriker AS 
RSL Espana S. A. 

S. Schendel GmbH 
San Francisco S.L.E 
De Artes Graficas 
Saturn Electronics 
SidmarN.Y 
Siegel-Robert, Inc. 

Siemens AG, Bereich 
Automobiltechnik 
SKF 

SNR Roulements 
Sommer-Allibert 
South Charleston 
Stamping & Mfg. 

Spartan Aluminum Products, Inc. 
Splintex S A 
Superior Industries 
International, Inc. 

TavolLda. 

The Torrington Co. 

Titan Services, Inc. 

Valeo 

VDO Adolf Schindling AG 
W. W Grainger; Inc. 

Western Fbundry Co. Ltd 
Weston Engineering 
Willenborg GmbH & Co. KG 
Woodbridge Foam Corporation 
Xerox of Canada 
Zanussi Component! Plastica spa 


General Motors 


Creating exciting products and enthusiastic customers by working together. 




FINANCIAL TIMES WEEKEND MAY 14/MAY IS 1994 


Ministers 


NEWS: UK 


By Roland Rudd 

and Charles Batchelor 


Ministers plan to send the £2bn 
CrossRall project for a cross* 
tandon. rail link baric to the 
four-man private bill commit- 
tee which recently voted to 
reject it 

The government believes the 
only realistic way of reviving 
the project is to persuade the 
committee to change its mind. 

Officials have all but ruled 


450 jobs 
to be cut 
at GEC 
Alsthom 


Daewoo to launch 
cars In Europe 


Daewoo Motor, the Korean car- 
maker, is planning to enter tha 
west European car market next 
year with the fcnnrh of its cars 
in the UK and Ireland. 

The company, the third larg- 
est vehicle maker in Korea, is 
establishing a wholly-owned 
importer-distributor in the UK 
with the aim of setting up a 
network of 75 to 100 dealers- 
They will be recruited this 
year, with the franchise 
launched next spring. 

The company hopes for a 
1 per cent share of the UK new 
car market by 1998, implying 
sales of about 20,000 a year. 

Mr Leslie Woodcock, for- 
merly managin g director of 
Suzuki GB Cars, has been 
appointed managing director of 
Daewoo's UK car operations. 

Daewoo Motor was formerly 
a joint venture with General 
Motors. Daewoo took over full 
control in 1992 following sev- 
eral years of policy disagree- 
ments, not least over the 
launch of Daewoobadged prod- 
ucts in important GM markets. 

Daewoo plans to launch ver- 
sions of its Espero and 
LeMans /Racer family cars, 
developed from the previous 
generation Vauxhall Cavalier 
and Astra models, uuder 
co-operation with GM. 


Two^tier county 
systems proposed 

The Local Government Com- 
mission is proposing that a 
two-tier system of counties and 
districts should continue in 
parts of three counties - 
Hampshire, Kent and Leices- 
tershire - in conflict with the 
government’s stated preference 
for all-purpose unitary authori- 
ties. 

In Hampshire, the favoured 
option is to make Portsmouth 
and Southampton unitary, 
while leaving the two-tier sys- 
tem intact for the rest of the 
county. In Kent, mergers 
between Gravesham and Dart- 
ford, and between Rochester 
and Gillingham, would create 
unitaries with the rest of the 
county staying two-tier, while 
in Leicestershire, Rutland and 
Leicester city would become 
unitary. 

In the other counties covered 
-Cambridgeshire, Cheshire. 
Cumbria, Oxfordshire, Berk- 
shire, Lancashire, Bucking- 
hamshire and Bedfordshire - 
umtary options are preferred, 
although there is a wide range 
of structures in each, 

hJ^v C ?? issic,Ilers ’ chaired 
5 Sh - J ohn Banham, made 
decisions earlier this 
we** ami published them in 
ttie Ixxal Government Chroni- 
cle yesterday. 



out the only other options. 
They are to present a “hybrid" 
bill - one which involves both 
public and private interests - 
to parliament or to use the 
Transport and Works Act of 
1992. 

The Department of Trans- 
port is already committed to 
one hybrid bill for the 
high-speed rail link- It Is 
unlikely to be awarded parlia- 
mentary time for a second in 

November’s Queen's Speech. 


The use of the Transport and 
Works Act would involve the 
sponsors requesting Mr John 
MacGregor, the transport sec- 
retary, to lay an order before 
parliament 

But because objections are 
then heard at a public inquiry 
or inquiries along the route, 

Whitehall officials believe the 

process could take at least 10 
years to complete. 

Ministers have started lobby- 
ing two of the three MPs on 


the private bill committee 
which rejected CrossRail, as 
the only r ealistic way of saving 
the project 

Only Mr Matthew Banks. 
Tory member for Southport, 
supported the bill on tiie com- 
mittee. 

Government officials are pin- 
ning their hopes on persuading 
Mr John Marek. Labour mem- 
ber for Wrexham, to change 
bis min d. They have taken 
comfort hum the support for 


the measure given by Mr 
Frank Dobson. Labour’s 
shadow transport secretary. 

Mr Dobson has urged the 
government to pot a motion 
before the Commons sending 
the bill back to the committee 
and Instructing them to look at 
it again. 

Mr Ken Purchase, the other 
Labour MP to oppose the bin, 
is not expected to reverse 
bis vote. He is understood to 
be sceptical about the benefits 


of private finance in public- 
sector projects such as Cross- 
RaS. 

Mr Tony Marlow, the com- 
mittee's Tory chair man, has 
said he thinks it unlikely that 
the government would be suc- 
cessful in asking the commit- 
tee to reconsider its decision. 
This would require it to show 
that the committee bad not 
acted according to the proper 
procedures or that there had 
been a significant change In 


the circumstances of the pro- 
posal. 

The committee was influ- 
enced by the decline in travel 
demand in recent years and by 
the development of other 
travel routes such as the Jubi- 
lee Line, he said. 

The CrossRail project would 
provide a six-mile east-west 
jink under central London. 
Commuters could reach their 
destinations without changing 
trains. 


PIA 

upgrade 


By Allaon Smith 


London Transport bus companies tor sale 


M 


mJk$ 


A A 

sFsS 



CENTSc'A'EST 


juasnsuaar 


AhJ 


GEC Alsthom, the Franco- 
British power and transporta- 
tion equipment group, is cut- 
ting 450 UK jobs, Andrew Bax- 
ter writes. 

It says the restructuring is 
designed to “meet changing 
market conditions and combat 
strong international competi- 
tion”. 

The cuts, in the company's 
power plants and traction busi- 
nesses, are its biggest since 
1991 when it shed 900 jobs and 
closed its power equipment 
plant at Lame, Northern 
Ireland. 

The latest retrenchment, 
along with redeployment, will 
halve GEC Alsthom’s work- 
force at Trafford Park, Man- 
chester, to 750. But there will 
be a net gain of 130 jobs at 
Preston and ISO at Rugby. 

GEC Alsthom Traction, 
which makes propulsion and 
power supply systems for rail- 
way rolling stock, is cutting 
220 jobs at Manchester and 130 ! 
at Preston, and moving 260 
commercial, engineering and 
administrative workers from 
Trafford Park to Preston. 

Mr Douglas Gadd, chan-man 
of GEC Alsthom in the UK, 
said rationalisation of propul- 
sion unit production around 
one plant had been under dis- 
cussion for some time. The 
move partly reflected the run 
up to British Rail privatisation 
and the resulting “absolute 
shortage of orders”. 


[OsnoWW 

•amashantf 


Annual scheduled mlteae* 
Number of amptayeas: 
Number of buses: . 
Turnover (1992-83): 

Source Bercfciya de Zoeto Wedd 


LEAStDE :] 
BUSES 1 

t 2 EAST 

1 *■ LONDON ] 

1 LONDON I 

| * CENTRAL ] 

I , SELKEXT 1 

V 

I SOUTH I 

1 5 LONDON ] 

I _ LONDON 

K 6 GENERAL 

I LONDON | 

I ‘ UNITED I 

1 CENTRE- I 

' ' 

I o METRO- 
1 y UNE 

I LONDON 

|'° NORTHERN 

17’mfflon 

21 mifflon 

- ISmSfion 

IBmfiSofl 

13 mBSon 

20 {nBSoo 

15 m88on 

tflraBQon 

11 mWon 

IQmSBon 


. MSB 

1,700 

1,400 

1350 


M*0 

MOO 

1,150 . 

■ %m 

■ 51Q 

590 

500 

380 

410 

500 

430 

510 

370 

320 

•-•{from . 

€S8m 

£47m 

eaten 

scorn 

OBOm ■ 

; - 1 M3* 

- fftfen 

£aam 

•: . saum 


The government yesterday 
dismissed a suggestion from 
Sir Gordon Downey, the for- 
mer chairman of the Personal 
Investment Authority, that It 
might b ecome a designated 
agency accountable directly to 
the Treasury. 

lu a strongly-worded state- 
ment, the Treasury saU there 
was “no value In pursuing the 

possibility that the PIA ari ght 
become a designated agency”. 

Sir Gordon rated the pm. 
pert of potting the PIA on the 
same footing » the Securities 
and Investments Board, the 
City’s chief watchdog, as a 
way of reducing duplication 
and expense in the regulatory 


Bidders queue up to buy capital’s buses 


By Charles Batchelor, 
Tran spor t Correspondent 


Several dozen bidders, 
including a number from over- 
seas, have made offers to buy 
one or more of the 10 com- 
panies that run London's red 
buses, it emerged yesterday. 

With many of the bidders 
making offers for all 10 compa- 
nies, the number of individual 
bids runs into the hundreds. 

Barclays de Zoete Wedd, 
financial adviser to London 
Transport Buses, was yester- 
day sifting through the indica- 
tive bids which were filed by 
the Thursday noon deadline, it 
will draw np a shortlist of 


Fife Scottish Omnibuses, part of the 
Stagecoach bus group, has given under- 
takings about its future good conduct 
after an Office of Fair Trading investiga- 
tion found it had tried to remove a com- 
petitor from the market 
The OFT found in March that Fife Scot- 
tish bad acted in a predatory and anti- 


competitive fashion against s ubsid ised 
services operated by Moffat and William- 
son for Fife Regional CotmdL 
Fife Scottish has given pledges not to 
Increase fares by more than the rate of 
inflation on the routes rw -were investi- 
gated and not to reduce the frequency of 
services. It wffl also not introduce new 


services in competition with those subsi- 
dised by its rivals. 

Stagecoach's active acquisition policy 
has led to frequent OFT investigations 
though It has been cleared in 16 of the 18 
cases. It has, however, been required to 
give undertakings after mergers with bus 
twwpamky fri Imc M til a«d Sussex. 


organisations that will be 
aah»H to make a final bid by 
early September. 

The London bus companies, 
which have a combined turn- 
over of more than £44Qm apd 
pre-tax profits of about £20m, 
are due to be privatised by the 
end of the year. 

Bids have come in from all 


the large UK bus companies, 

the mawapunpnf tornic of Lon- 
don’s 10 bus companies and 
bidders in South Africa, France 
and Sweden. There have also 
been bids from “a niimhur of 
companies you would not nec- 
essarily expect,” BZW said. 

Stagecoach, the quoted 
Perth-based company, said it 


had bid for all the companies 
though it expected tire papular 
ones to fetch high prices. Mr 
Derek Scott, finance director, 
said he was not surprised at 
the high degree of interest 
because of the worldwide 
image of London’s red buses. 

“Nobody has been put off by 
the government's decision to 


defer the de- regulation of Lon- 
don’s buses,” said Mr Clive 
Hodson, managing director of 
London Transport Buses and 
the man in charge of privatisa- 
tion. De-regulation would 
in crea se wimpati^ nn on many 
bus routes. 

The organisations may bid 
for as many bus companies as 


they like, but they would not 
be allowed to acquire 
operations accounting for more 
than 25 per cent of the market. 
This means they would be able 
to acquire at most three of the 
smallest companies or two of 
the larger ones. They would 
also not be permitted to 
acquire neighbouring bus com- 
panies. 


Successful bidders will be 
expected to provide acceptable 
pension arrangements for staff 
of the former bus companies, 
Mr Hodson said. 

London represents the final 
stage in the privatisation of 
Britain’s bus services. 


Voluntary pact curbs 
tobacco advertising 


Malaysian row 
Thames Water 


over 

talks 


By Ivor Owen 
and Diane Simmers 


New restrictions on tobacco 
advertising were announced 
yesterday by the government 
as a back bench bill to ban all 
tobacco advertising failed to 
complete its passage through 
the Commons. 

The restrictions, which form 
part of a five-year voluntary 
agreement betvreen. the govern- 
ment and tobacco manufactur- 
ers, will mean larger health 
warnings, fewer posters, and 
the removal of all permanent 
shopfront advertising for 
tobacco products by the end of 
1996. 

The bfll, which had been pro- 
posed by Mr Kevin Barron, 


Labour MP for Bother Valley, 
was opposed by the govern- 
ment, and yesterday ran out of 
time at the report stage afier 
Conservative MPs tabled 
amendments. 

Mr Tom Sackville, junior 
health minister , Mid the new 
voluntary rules would mean an 
end to the use of humour likely 
to appeal to the young, and the 
removal of posts* advertising 
from within a 200-metre radios 
of school entrances. 

The Tobacco Manufacturers 
Association said yesterday it 
had agreed “with the utmost 
reluctance” to the new restric- 
tions and was “dismayed and 
disappointed" by the “attack 
on the industry’s marketing 
freedoms”. 


The Adver tising Association, 
the umbrella group which has 
been co-ordinating opposition 
to the bill, said it was relieved 
that a complete ban did not get 
through. It was “extremely dis- 
appointed”, however, that fur- 
ther restrictions had been 
placed on advertising in spite 
of there being “no evidence of 
a link between advertising and 
total market consumption” of 
tobacco products. 

Action on Smoking and 
Health, the anti-smoking cam- 
paign group, claimed a “moral 
victory" and said it would back 

anwnilmmfat to Other hills , “in 

the same way that the seat 
belts legislation was intro- 
duced”, to bring in a ban on 
tobacco advertising. 


By IGeran Cooke 
In Kuala Lumpur 
and Br o nwen Maddox 


Thames Water has become 
embroiled in a political row in 
Malaysia, as the country con- 
tinues its ban on awarding 
government contracts to Brit- 
ish companies. 

Mr Anwar Ibrahim, Malay- 
sia's deputy prime minister, 
has criticised the local govern- 
ment in the north Malaysian 
state of KataTitan because he 
says its leaders had awarded a 
water supply contract to 
Thames. Mr Anwar accused 
the local authority of defying 
government policy. 

The Kelantan government 
says it awarded the contract to 


Thames at the end of last 

mo nth 

The Malaysian government 
imposed its ban on British 
companies in February in 
retaliation for critical com- 
ments about the Malaysian 
leadership that appeared in the 
British press. 

Mr Mike Hoffman, group 
rfiipf executive of Thamws , has 
denied that any such contract 
has yet been awarded. 

In London, Mr Hoffman said 
that Thames had been “work- 
ing very hard” to win the 
water distribution contract in 
Kelantan but a final decision 
had not yet been made. 

“We are up against a lot of 
international competition, but 
I would suspect that we have 


got to the point where we are 
in the lead.” said Mr Hoffman. 

The reason for the confusion 
is not clear. Kaiantan is the 
only state in the Malaysian fed- 
eration not controlled by the 
governing national front coali- 
tion headed by Dr Mahathir 
Mohammed, th e prime minis- 
ter. 

hi recent months the author- 
ities in Kelantan and the 
federal government in Kuala 
Lumpur have been involved 
in a number of bitter argu- 
ments. 

A number of British compa- 
nies are believed to have lost 
multi-million pound contracts 
as a result of the ban. Malaysia 
has given no indication as to 
when the ban wiQ be lifted. 


Writing in the Independott 
newspaper yesterday, fflr Gor- 
don argued that such a move 
would also help to pentads 
smaller firms that the PIA 
would not simply be a “colo- 
nial outpost** of SIB. 

Last September Sir Gardes 
was abruptly replaced as FIA 

chairman by Mr JOC Mmw 

former chief executive of Legal 
& General and a director of 
SIB. 

The Treasury said turning 
the PIA into a designated 
agency would delay the intro- 
duction of higher standards, 
create the risk of Inconsis- 
tency of standards and reduce 
practitioner Input 

“It is certainly not dear how 
that would help to protect 
investors,” It conatntaL 

Some of those In favour of 
the designated agency option 
have argued that it might 
appeal to the government 
because it could be achieved 
without new legislation. 

If the PIA were to become a 
designated agency, new legis- 
lation - which the government 
has set its face against - 
would be needed In order, for 
example, to give it the power 
to levy fines. 

Sir Gordon's suggestion and 
tiie response to it come against 
a background of continuing 
discontent in the retail finan- 
cial services industry. . 

Two-thirds of Hfe companies 
have applied to join the PIA. 
Bat with only abont two 
man**** to go before it comes 
into operation, less than half 
its total potential members - 
including independent flhan- 
dal advisers and others - have 
so far applied to join. 

The most likely event to 
spark further applications 
would be an announcement by 
SIB confinning its Inclination 
to recognise the PIA as protec- 
tor of the private investor. 

Such a statement might 
enable some of the larger 
organisations which have 
expressed unease about the 
PIA to support the new regula- 
tor, since it would be seen as a 
stronger guarantee that the 
new regime would mean 
hi gher standards. 


The man who might be Labour’s JFK 


The party seems to be turning to 
Tony Blair, says Philip Stephens 


Mr Tony Blair was saying 
nothing yesterday about the 
leadership of the Labour party. 
As the shock of Mr John 
Smith's death continued to 
reverberate around the corri- 
dors of Westminster, callers to 
his office were told politely but 
firmly that the shadow home 
secretary was in mourning. 
Neither he nor those around 
him wanted to talk about the 
future at the moment. 

His sil enc e did not quell the 
speculation. The outcome of 
the leadership contest which 
will follow Mr Smith’s death 
will be uncertain for same time 
yet. But all logic dictates Mr 
Blair should and will stand. 

Amid the genuine grief there 
is a strengthening perception 
in the party at Westminster 
that the 41-year-old MP for Sed- 
gefield. is the natural successor 
to Mr Smith. He is 14 years 
younger. He displays more of 
the impatience of youth than 
the calculated caution which 
guided Mr Smith's leadership 
of his party. But Mr Blair 
shares many of tin* qualities of 
Labour’s lost leader. 

Some comparisons are super- 
ficial. Mr Blair is English 
rather than Scottish, but he 
was bom and went to school in 
Edinburgh. He is middle - class . 
He is a barrister. Real resem- 
blances run toper. Mr Blair, 
like Mr Smith, is a politician at 
ease with himself His family 
life provides an important con- 
nection with the real world. 
His outlook rests on a bedrock 
of beliefs which have never dis- 
tinguished between social 
cohesion and opportunities for 
the individual; between eco- 
nomic prosperity and social 
justice. 


He has frequently been 
derided by same on the left of 
his party as a product of the 
“soundbite” politics of the 
1980s, but - again like Mr 
Smith - he sees no contradic- 
tion between passion and mod- 
eration. 

His case is that Labour, as it 
did in 1945 and 1963. must lead 
the tide of ideas if it is to 
return to government Above 
all it must eschew the comfort- 
able politics of delusion which 
have kept it out of office for 
15 years. 

Mr Blair is determined that 
the Labour party must change. 
But he is equally adamant that 
ffhanga does not mean aban- 
donment of past principles. As 
he put it in one of the many 
speeches and newspaper 
articles through which he has 
sought to build a new ideologi- 
cal framework for Labour; 
“Reform is not about betraying 
principles but about rescuing 
them from the past” 

In other words you do not 
have to sign up to oldetyle col- 
lectivism, to state ownership, 
or to punitive income tax rates 
to promote the fundamental 
goal of the Labour party - 
offering opportunity to the 
broad mass of the people. 

Mr Blair's views are not 
unique. They are shared by his 
close ally and friend Mr Gor- 
don Brown. The shadow chan- 
cellor Is also a formidable can- 
didate for the leadership. 

But while Mr Brows has 
been bogged down in trench 
warfare with union leaders in 
his attempts to construct a 
credible economic strategy, Mr 
Blair has found the room in his 
present post to translate princi- 
ples into policies. 




Voting rules for 
leadership fight 
to be clarified 


By Robert Taylor, 
Labou- Correspondent 



• V.'L^ w-t V • 




Tony Blair; feared by Ms Tory opponents; respected by his enemies on the left of the Labo^party* 


His startling success in fash- 
ioning a surprisingly tough 
stance on crime owes much to 
his more fundamental empha- 
sis on partnership between the 
individual and the community . 
Society as a whole has an obli- 
gation to prevent and deter 
crime. But the individual can- 
not escape responsibility for 
his or her actions. The sound- 
bite - tough on crime, tough 
on the causes of crime - is 
more than a clever slogan. 

He adopted a similar 
approach in his dealings with 
the unions as shadow employ- 
ment secretary before the 1992 
general election. To the fury of 
many in the union movement 
- something which will count 


against him now - he argued 
that Labour's commitment 
should be to the rights of indi- 
vidual workers’ rather than to 
the political muscle of the 
Trades Union Congress. 

Voters like such sentiments 
- particularly when they are 
delivered by a young, person- 
able and articulate politician. 
It is hard to find anyone at 
Westminster who does not 
believe that Mr Blair would 
be the lead a- most likely to 
win back the support of the 
middle classes In southern 
England. 

Mr Blair is confident in his 
convictions. Mr Neil Kinnock. 
the former Labour leader, 
regards him as one of the brav- 


est politicians of his genera- 
tion. He is feared by his Con- 
servative opponents. His oppo- 
nents on the Labour left at 
Westminster respect Him as 
well as disagree with him. 

Mr Kenneth Clarke, the 
chancellor, regards him as the 
toughest Labour spokesman be 
has faced across the Commons 
despatch box. Privately, cabi- 
net colleagues admit that he is 
the choice they fear most as 
leader. 

If Mr Blair wins the Labour 
leadership the Conservatives 
will deride him for his youthful 
inexperience. But what will 
frighten them is that he mi ght 
emerge as the Jack Kennedy of 
British politics. 


The Labour party win elect its 
next leader by single transfer- 
able vote after taking advice 
from its solicitors following the 
confusion which arose over 
interpretation of rules passed 
by last year's annual confer- 
ence. 

Rule 2(c) states that a candi- 
date must receive half of the 
votes cast in the election in 
order to win. If this does not 
happen on the first ballot, “fur- 
ther ballots shall be held on an 
elimina ti on basis”. 

This could have been inter- 
preted as meaning the party 
would have to bold a series 
of ballots and go back to the 
electorate involved each 
time. 

The party’s lawyers have rec- 
ommended to the ruling 
National Executive Committee 
that this can be interpreted to 
cover ballot voting with elec- 
tors giving preferences among 
more than two candidates 
under the STV - or preferen- 
tial voting - System. 

The NEC is expected to 
decide on when to hold the 
leadership election when it 
meets on 25 May. 

The choice is between going 
ahead quickly, with the result 
announced at a special one-day 
conference by the end of July, 
or waiting until the party’s 
annual conference in early 
October. 

Voting will be in three sec- 
tions, with each section 
accounting for a third of the 
total vote - the 4.5m union 


members who pay a political 
levy; the 250,000 or so individ- 
ual members of the party; end 
Labour MPs and MEPs. 

Under Labour rules, the 
irninm members must not he 
“members or supporters of any 
other party or otherwise Ineli- 
gible to be members of the 
Labour party”. 

The party's rules make dear 
that voting will “take place 
under the procedures of each 
affiliated organisation” on the 
basis of “one person one vote" 
Most unions are expected to 
use Individual postal ballots of 
levy-paying members. 

They have to do this already 
by law when they hold ballots 
to secure the approval of all 
their members for having polit- 
ical funds. 

Unions must also hold postal 
ballots of their members for 
the election of their leaders 
and executive committees as 
well as before organising 
industrial disruption. 

Union leaders will no longer, 
as in the past, wield block 
votes in the election, but are 
likely to express their views 
and candidates can be expected 
to camp ai g n around the union 
conference circuit over the 
next few weeks. 

The big difference with any 
other previous election for 
Labour lewder is that the candi- 
dates will be able to appeals# 
just to small groups of activ- 
ists. or the paid-up party mem- 
bers but to millions iff ordinary 
people who do not belong to 
any political party - but pay 
the political levy to their 
union. 


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FINANCI^^^TIME^^VEEKENQ MAY 14/MAY 15 1994 


NEWS: UK 


7 


Sinn Fein 
spells out 
its queries 


King loses clai m on market domain 


By Tim Coone ki Dublin 
and David Owen 

Hopes of a breakthrough in the 
UK- Irish peace initiative rose 
yesterday after Sinn F4in, the 
IRA's political wing, responded 
to calls to spell out which parts 
of the Downing Street declara- 
tion it wants clarified. 

The Irish government for- 
warded to London a list of 
questions drawn up by Sinn 
F6in focusing on the declara- 
tion's treatment of self- 
determination. the so-called 
unionist “veto" and Britain's 
long-term intentions in the 
province. 

The move constitutes a 
potentially significant climb- 
down by Sinn Fein, which had 
previously insisted on 
face-to-face meetings with gov- 
ernment officials to discuss its 
reservations. 

London is expected to reply 
to the questions next week. 

Sir Patrick May hew, North- 
ern Ireland secretary, said last 
night in a statement that the 
government would publish 
Sinn Fein's text together with 
its own “comments". This 
would take place “within a 
matter of days once we have 
had an opportunity to give 
them proper consideration”. 

It will raise hopes that 
republican leaders may be edg- 
ing closer to declaring an end 
to their 25-year armed cam- 
paign, paving the way for Sinn 
Fgin to enter the political talks 
process. 

London has emphasised 
repeatedly that Sinn Ffein's 
demand for clarification had 
never been made specific since 
to do so would “attract ridicule 
and scorn”. 


By Andrew Baxter 

Emdair, a small company 
which has developed a poten- 
tially world-beating light- 
weight diesel engine, is facing 
collapse because, it says, its 
bank has reduced its over- 
draft. 

The company, formed in 1984 
from the former Weslake 
engine group, recently com- 
pleted the first trials of the die- 
sel engine. 

Mr Michael Daniel, Emdairis 
managing director, said the 
engine was being developed as 
an alternative to conventional 
diesels in auxiliary power units 
on tanks and other military 
equipment. "We regard the 
engine as a major break- 
through in world diesel tech- 
nology," he said. 

Last month the company, 
based in Rye, East Sussex, 
received the final £45.000 
instalment from Australian- 
based Collins Motor Corpora- 
tion, on a £50,000 order to sup- 
ply the first engine. 

The £45.000 was paid into 
Emdair’s bank, the Croydon 
branch of Clydesdale Bank. Mr 
Daniel said the bank promptly 
reduced the company's over- 
draft limit from £125,000, which 
Emdair had been exceeding by 
£5,000, to £85,000. 

Mr Daniel was incensed at 
the decision. “We wanted to 
use the £45,000 to pay the 
Inland Revenue and other cred- 


But Sir Patrick hinted last 
month, to a US congressional 
committe e that he would con- 
sider responding to specific 
queries. 

Unionists reacted cautiously 
to yesterday’s development 

Mr David Trimble, Ulster 
Unionist MP for Upper Bann, 
said Sir Patrick should send 
the questions back “with the 
envelope unopened". Dublin 
had “persuaded the Provos to 
do this to keep the British on 
the hook”. 

Sinn F<§in's move came after 
Sir Patrick had used a speech 
in Dublin to try to inject fresh 
urgency into the search for a 
lasting political settlement, 
saying an early end to direct 
rule in Ulster was needed. 

In a carefully balanced 
address, the Northern Ireland 
secretary said there was a 
clear role for “new structures” 
to develop the relationship 
between the two parts of the 
island “purposefully and profit- 
ably". 

This meant certain assump- 
tions would have to be made 
on the shape of democratic 
institutions in Northern 
Ireland but there was no need 
for these to impinge on sover- 
eignty. 

He said London and Dublin 
were looking for a “new and 
more broadly based” Anglo- 
Irish Agreement to replace the 
document agreed in 1985 that 
gave Dublin a say in Ulster 
affairs for the first time. 

Reaching a new agreement 
would me an - an of us being ; 
prepared to embrace new I 
ideas, new institutional struc- 
tures and imaginative 
approaches to constitutional 
and human rights issues”. 


iters, and retain our facility at 
£125,000 so that we could 
develop the company,” he said. 
The overdraft has since risen 
to £100,000. 

Mr Daniel said the company 
had an order book sufficient to 
maintain the existing work- 
force of 19. But without the 
ability to buy critical raw 
materials and specialised ser- 
vices its ability to continue 
trading was threatened. 

Mrs Jacqui Lait, Conserva- 
tive MP for Hastings and Rye. 
has written to Lord Nickson, 
Clydesdale's chairman, asking 
him to review the bank’s posi- 
tion urgently and help Emdair 
through its current difficulties. 
She has also written to 
Mr Kenneth Clarke, the 
chancellor, about the 
case. 

Glasgow-based Clydesdale 
Bank said last night it could 
not comment because of cus- 
tomer confidentiality. 

Emdair. which also produces 
conventional light-aircraft 
engines, is 40 per cent owned 
by Collins. The latest four-cyl- 
inder 1.7-litre diesel engine 
evolved from a petrol engine 
developed by Emdair for the 
Australian company. 

It is based an the so-called 
“scotch yoke" principle that 
involves two exactly opposed 
horizontal cylinders to balance 
the engine forces. Hie system 
was first used on steam-driven 
water pumps. 


By John Anthers 

King James 1 was yesterday 
overthrown by the Corporation 
of London. 

At issue was the ownership 
of Southfield Market, awrf the 
corporation's battle for the site 
was won after meticulous 
poring over historical docu- 
ments. 

In 1613, King James r 
disputed the corporation’s 
claim to ownership of the 
market, which stands on what 
is now prime land for develop- 
ers. adjoining St Bartholo- 
mew's Hospital in the City of 
London. 

The Court of Appeal judges 


Cabinet 
reshuffle 
may be 
postponed 

By Philip Stephens 
and James Buxton 

Senior Conservatives said 
yesterday that Mr John Major 
may now postpone his planned 
cabinet reshuffle as die gov- 
ernment re-assesses Its politi- 
cal strategy after the death of 
John Smith. 

The suggestion came amid 
hardening opinion on the Tory 
back botches that the pending 
Labour leadership struggle 
has removed any immediate 
threat to Mr Major's leader- 
ship after next month’s Euro- 
pean elections. 

Same cabinet ministers also 
suggested that the risk of an 
autumn challenge had also 
evaporated, but critics insisted 
Mr Major's future beyond the 
summer depended on the gov- 
ernment retaining its grip. 

There was speculation also 
that if Labour chose Mr Tray 
Blair, the shadow home secre- 
tary, as Its new leader, the 
prime minister could come 
under renewed pressure. Mr 
Blair is regarded by the Con- 
servatives as potentially the 
most dangouus of the opposi- 
tion leadership contenders. 

Colleagues suggested that 
there would now be no pur- 
pose in Mr Major reshuffling 
his cabinet immediately after 
tiie June 9 European polL 
Instead the prime minister 
would be likely to wait until 
the second half of July - or 
perhaps until September - so 
that he could assess the 
impact of Labour’s leadership 
decision. 

The transformation in the 
outlook created by Mr Smith’s 
death also brought renewed 
talk that Mr Michael 
Heseltine, the trade and indus- 
try secretary, might be per- 
suaded to take on the role of 
Conservative party chairman. 

Mr Heseltine, who suffered a 
minor heart attack last year, 
pronounced himself yesterday 
“100 per cent fit". But Mr 
Heseltine’s own leadership 
ambitions have been dented by 
the manner of Mr Smith's 
death. One suggestion is that 
Mr Heseltine might share the 
chairmanship with Lord 
Archer. 

Speaking to Inverness at the 
Scottish Conservative confer- 
ence, Mr Heseltine gave strong 
backing to Mr Major. He told 
activists that the Tories were 
“the one party that will take 
the courageous and difficult 
decisions”. He added: “The 
prime minister has proved 
time and time again that he is 
willing to do that, and I am 
certain that his party will 
back him and his government 
through thick and thin.” 


had to review some ageing doc- 
uments. The first royal charter 
granting Smithfield to the City 
was signed by Henry VI in 
1444. it was regranted to the 
City by Henry Vli in another 
charter of 1505. 

According to the City, the 
crown showed no ambitions on 
the site, which it had owned 
“since time immemorial", until 
James I claimed ownership. 

This dispute led to a compro- 
mise under James's successor, 
Charles L The precise meaning 
of this charter, granted in 1638, 
which was meant to clarify the 
position, has been at issue. 

According to the City: 'The 
crown’s claim was that that 


By James Buxton, 

Scottish Correspondent 

Mr John Major last night used 
the truce in British politics to 
appeal for more time and ask 
that his government be judged 
over the full five-year term of 
its mandate, which he intended 
to complete. 

He also used it to try to heal 
differences in the Conservative 
party on the European Union 
by arguing that Britain needed 
to be there to ensure that the 
EU made the right decisions on 
its future. 

In a warmly received speech 
to Scottish Conservatives - 
which was stripped of party-po- 
litical point-scoring because of 
the death of John Smith - the 


By James Buxton 

The government is determined 
that long-term unemployment 
should never be a way of life 
for those who foil to obtain 
work, Mr David Hunt, the 
employment secretary, told 
Scottish Tories yesterday. 

Mr Hunt said the govern- 
ment planned to offer those 
unemployed for more than a 
year the options of training 
schemes, work experience, fur- 
ther education and subsidised 
jobs. 

He said a pilot scheme called 
Workstart in north Norfolk, 
under which employers 
received £60 a week to employ 


charter established the crown's 
ownership, and the corpora- 
tion's right to certain uses of 
the land.” 

But the City claimed that the 
compromise upheld the corpo- 
ration's ownership of the five- 
hold. 

Yesterday's ruling against 
James 1 upheld a 1992 High 
Court judgment that the City 
owns the freehold, although it 
is restricted to using the land 
either for a meat market or for 
open space. 

The Crown Estates commis- 
sioners, which brought the 
case on behalf of the crown, 
were required to pay legal 
costs for the City, which are 


prime minister urged politi- 
cians to abandon the negative 
approach to politics. 

“Sometimes I feel that there 
is too much knocking, too 
much carping, too much sneer- 
ing. Too much setting up of 
Aunt Sally against Aunt 
Sally." he said. 

“Being negative can be an 
addictive drug... But like any 
drug ft corrodes and destroys 
the body in which it exists. 
And one body which it runs 
the risk of corrupting is the 
body politic itself." 

He said the government was 
not yet halfway through the 
five-year mandate it had won 
from more than 14m people 
“and I intend to complete it. 
And then I shall say: judge me 


long-term jobless people, was 
achieving success. "The bene- 
fits system must never be 
allowed to subsidise the black 
economy.” he said. 

It was there to “support 
those who. through no fault of 
their own, are without work. I 
cannot accept or tolerate 
unemployment aa a way of 
life.” 

Mr Hunt was addressing the 
final day of the Scottish Con- 
servative party conference in 
Inverness. On Thursday the 
conference was suspended as a 
mark of respect to John Smith 
and yesterday’s session was 
subdued. 

Speakers were forced to 


estimated at about £50,000. 

As a result the City retains 
its hold on the public gardens 
immediately to the south of the 
market, plus a segment of the 
market itself whose ownership 
was also under dispute. 

The crown did not apply for 
leave to appeal to the House of 
Lords yesterday, but the 
Crown Estates said this option 
had not been ruled out Solici- 
tors are reading the judgment 
“in detail" and an announce- 
ment Is likely on Monday. 

The City claimed there were 
insufficient grounds to appeal 
to the Lords. 

Speculation over the future 
of the market has rekindled 


on my whole term of office. All 
of it You cant judge a house 
when only the foundations are 
laid." 

The government wanted to 
complete the a genda that he 
set out last October at the 
party conference in Blackpool 
- the priorities were to achieve 
a stable economy, combat 
crime and raise standards in 
schools. 

Mr Major said inflation had 
been brought down and keep- 
ing it down would remain the 
cornerstone of economic pol- 
icy. Crime was being tackled 
with new legislation, and 
teacher training was the last 
part of the education reform 
programme. 

Mr Major warned Europe 


rewrite their speeches to 
exclude attacks on the Labour 
party. They instead made jibes 
against the Scottish National 
party and the liberal Demo- 
crats. 

Mr Michael Heseltine, trade 
and industry secretary, did not 
attack any party and spoke 
largely on economic issues. 

Sir Michael Hirst. Scottish 
Conservative party chairman, 
warned dissident MPs at West- 
minster that attacks on the 
government or the prime min- 
ister caused severe damage to 
election campaigns. 

“When MPs pop up on West- 
minster Green to have their 
moment of publicity sticking 


the dispute in the past few 
decades. Proposals to move it 
to a different site were mooted 
in the 1970s. More recently, 
some market traders have 
claimed they cannot pay the 
rents the City will charge to 
fund refurbishment to conform 
to European Union hygiene 
regulations. 

Faced with the chance that 
the land would be made avail- 
able for redevelopment, the 
crown revived its Interest. 

The City said: “The majority 
of the land will continue as a 
public space, so in practical 
terms it makes no difference, 
but it's reassuring to have this 
dispute settled after 381 years.” 


M Scottish Tories told of EU’s importance M Speakers call for end to disunity 



Michael Heseltine at the Tory conference at Inverness yesterday. He pronounced himself “100 per cent fit” Photograph: Reuter 

Major seeks long-term judgment 


Hunt gives pledge on jobless 


that “unless it makes the right 
choices about policy today - 
unless it adopts free-market 
policies and believes in them - 
Europe won't be up there in 
the next century with the US, 
Japan and China.” 

That was why Britain must 
play its full part. But he 
acknowledged that the issue 
touched deep nerves in British 
politics. “For too long Europe 
has been the poison in the well 
of British politics." 

It was Important to remem- 
ber the economic realities, he 
said. British business depended 
on Europe. More than half the 
UK's exports went to Europe 
and Britain needed to be in the 
EU if it wanted to attract 
investors. 


the knife into the government 
or the prime minister, I 
only wish they realised what 
damage they do to us," he 
said. 

“They ought to remember 
that disunited parties find 
themselves in the electoral wil- 
derness." 

He acknowledged that people 
in Scotland who had deserted 
the party in last week's local 
elections - the Conservatives 
came fourth with 14 per cent of 
the vote - were unhappy about 
“the effects of recession, tax 
increases, VAT on ffteL aspects 
of local government reform 
and our proposals for water 
and sewerage”. 


Bank move hits 
engine maker 


Euro-candidates confront a proportion of controversy 


First-past-the-post rules and poor 


John Smith's 
death has 
thrown into 
turmoil all the 
parties' plans 
for the first 
week of the 
European, elec- 
tion campaign. 
But the battle 
will still turn 
more on John 
Major's leader- 
ship than on any European 
issue. Between Thursday June 
9 and Sunday June 12 voters in 
the 12 countries of the Euro- 
pean Union will choose 567 
MEPs to go to Strasbourg- 
Britain will have 87 MEP’s. 

The political composition of 
the European parliament 
depends to a remarkable extent 
on British voters. Great Britain 
(though not Northern Ireland) 
alone votes first-past-the-post 
instead of proportionally: the 
winner in votes gets a dispro- 
portionate majority in seats. 

In 1979 the Conservatives 
secured 62 seats to Labour's 17. 
hi 1989 Labour won 45 seats to 
the Tories' 32. if there had 


A record total of 552 
candidates is to Maud in the 
UK constituencies for the 
European parliament. 

The Greens and the three 
nrntn parties are to fight all 
the constituencies In Great 
Britain. But candidates of the 
Natural Law party, which rep- 
resents followers of the Maha- 
rtehl Mahesh Yogi, are stand- 
ing in every UK constituency - 
making the party the first to 

been proportional representa- 
tion the Conservatives* lead in 
1979 would have been 22, not 
45. In 1989 the Labour lead 
would have been four not IK 

If, as some suggest, the Con- 
servatives suffer a Canadi an- 
style wipe-out next month, the 
effect could give the left a net 
majority at Strasbourg 60 or 70 
greater than it would have 
been if Britain had adopted 
proportional representation. 

If the Tories are embarrassed 
by the outcome they will be 
able to air low participation as 
an excuse. Britain has been 
consistently bottom of the 



voter turnout are the hallmarks of British elections to Strasbourg, David Butler says 

European parliament elections: 
how/tfee Tories have faded 

MEPs % of Vote (QB) 

• Con- LabUbD others -Con Lab UbO others 

1979- ' 82 -'17' - ' 4 ' 51 31 13 5 

1984 „ .46 -.JML : - 4 41 37 20 2 

1989 -32 '. ..45 • ' 4- . 35 40 6 • 19 ■ 

109*: 12; 66 .14 5 27 41 » 5 

'‘Projection from voting 6i'thte month’s council' elections 


fight every seat, either for 
Europe or Westminster. The 
Tories have just one candidate 
in Northern Ireland where 
three MEPs are elected by pro- 
portional representation. 

Boundary changes have cre- 
ated six more UK seats and 
left only 17 of the present 
seats in England and Wales 
unchanged. The eight in Scot- 
land and three in Northern 
Ireland are unaffected. 


turnout league. On average 33 
per cent have voted, less that 
half the level for Westminster 
and well below the norm in 
local council elections. 

Voters can behave unexpect- 
edly. In 19S9 the Greens 
jumped from an opinion-poll 
level of 3 per cent three 
months earlier to 16 per cent in 
the ballot box. pushing the Lib- 
eral Democrats into fourth 
place in every constituency 
except Cornwall. Six months 
later, their support had evapo- 
rated. 

This year the Liberal Demo- 
crats seem set to mop up much 


The Scottish National party 
is fighting all the Scottish 
seats and Plaid Cymru all five 
in Wales. The Liberal party, 
which includes those who 
chose not to join the liberal 
Democrats, has 17 candidates. 

Well-known names nominated 
include former health minister 
Mrs Edwina Currie at Bedford- 
shire and Milton Keynes. 

Ms Panline Green, who leads 
Labour’s European parliament 


of the protest vote - and there 
is plenty of protest vote about 
The local election figures and 
the opinion polls suggest that 
there is not a single seat that is 
safe for the Conservatives. 

In a three-cornered race, 34 
per cent of the vote Is needed 
to win, even if the other two 
contestants are evenly divided 
(which is most unlikely). North 
Yorkshire seems to be the only 
seat north of Birmingham 
where there is a serious chance 
of a Conservative victory, but 
even in the south there is no 
safe seat There are only three 
constituencies where a swing 


group, is fighting for her mar- 
ginal London North seat on 
unchanged boundaries. But 
Tory leader Sir Christopher 
Pront has been favoured by 
alterations leaving him with 
an apparently safer Hereford- 
shire and Shropshire seat. 

The election is on June 9, 
but counting will not start 
until the night of Jane 12 
when polling ends in all Euro- 
pean Union countries. 


at the level of the local elec- 
tions last week would leave the 
Conservatives with 40 per cent 
of the vote, and in each of 
these the Liberal Democrats 
are the stronger challenger. 

On the basis of local election 
results last week it was calcu- 
lated that Labour would get 56 
seats, the Liberal Democrats 14 
and the Conservatives 12. The 
ICM poll in The Guardian ear- 
lier this week suggested that 
the Conservatives would get 
only 27 per rent of the vote in 
the European election. Its find- 
ings could be projected to 57 
seats for Labour, 15 for the 


Conservatives and nine for the 
liberal Democrats. 

Some would say that both 
projections are too optimistic 
for the Conservatives. With no 
council tax at stake their erst- 
while supporters may be 
tempted to a more vehement 
protest vote, or protest 
abstention, while the Liberal 
Democrats may gain even 
more from tactical voting by 
Labour. 

The fate of Mr Graham 
Mather, the Conservative can- 
didate in Hampshire North and 
Oxford, will turn on whether 
Labour voters in Oxford East 


realise that their only hope of 
defeating the Conservatives 
lies in voting Liberal Demo- 
crat. Similarly. Dr Caroline 
Jackson's survival as the Con- 
servative MEP for Wiltshire 
depends on whether Swindon 
voters stay loyal to Labour. 

On the other hand, it can be 
argued, as the ICM poll sug- 
gests, that the Liberal Demo- 
crate will get only 24 per cent 
in the European election. It 
may be that their pavement 
politics cannot be so effective 
in a European contest 

The author is a fellow of 
Nuffield College, Oxford. 


National 

Savings 

receipts 

decrease 

National Savings’ contribution 
to government coffers 
fell again last month, 
Scheherazade Daneshkhu 
writes. 

The contribution was a net 
£3 73m. with accrued interest 
accounting for another £181 m. 
March's receipts were £48lm 
plus accrued interest of £ll6m, 

which themselves were a fall 

on February's £6l7m plus 

C158ra. 

Figures for April from build- 
ing societies and unit trusts - 
National Savings' keenest com- 
petitors - have not yet been 
released but societies have 
been fighting a steady net out- 
flow of funds since November 
The new-found fondness by 
private investors for equity 
investment against a back- 
ground of low interest rates 
helped sales of unit trusts to a 
record month in March. 

National Savings aimed to 
increase its intake and to 
assuage the fears of the 
elderly, who arc dependent on 
their savings, by launching 
the Pensioners Bond in 
January. 

The bond pays an annual 
fixed rate or 7 per cent gross 
for five years. It was the best- 
selling National Savings prod- 
uct in March and April. April's 
contribution was £236 m. 

Premium Bonds were the 
next best-selling product last 
month at £176m. Since Febru- 
ary, sales have been boosted by 
the first Elm prize draw. That 
took place last month. 

Total gross sales of ail 
National Savings products in 
April amounted to £1.09bn with 
repayments of £72 Lm. 

Liffe said to be 
probing misconduct 

The London International 
Financial Futures Exchange is 
believed to be investigating a 
case or misconduct by one of 
its members. 

Liffe had no comment on the 
matter but it Is thought to 
involve an independent trader 
who was carrying out business 
on behalf of J.P. Morgan, the 
US investment bank. 'The bank 
also declined to comment. 

Although banks are mem- 
bers of Liffe, they sometimes 
execute orders through inde- 
pendent traders if they want 
anonymity. 

Sources said the trader was 
reported to Liffe’s market 
supervisory division after he 
was seen "acting inappropri- 
ately” in the Italian govern- 
ment bond futures pit. 

The trader was thought to be 
“front-running" - executing 
his own order before his cli- 
ent's and thereby taking 
advantage of the price move- 
ment caused by tbe execution 
of a large order. However, J.P. 
Morgan's clients were pro- 
tected at all times, sources 
said. 

Bank to auction 
convertible bond 

The Bank of England plans to 
auction a short-dated UK gov- 
ernment bond on May 25 that 
will be convertible into a long- 
dated gilt - the first time it has 
issued such a convertible stock 
since 1987. 

With a convertible gilt, 
investors have the option of 
converting tbe issue into a 
specified alternative stock on 
set dates and at specified terms 
of conversion. This gives inves- 
tors the chance to participate 
in more than one area of the 
gilt market. 

The Bank said the short- 
dated issue will be convertible 
Into a long-dated conventional 
stock. It will release details of 
the auction size and the matu- 
rity of the stocks on May 17. 

Lex, Page 24 

Power plan wins 
initial approval 

The government has given the 
go-ahead in principle to the 
National Grid Company's 
£200m plan to install 50 miles 
of 400kv powerlines through 
Cleveland and scenic North 
Yorkshire countryside. 

The proposal triggered 7,000 
objections and opposition from 
seven local planning authori- 
ties. There was a six-month 
public inquiry in 1992. 

The plan will mean building 
more than 200 pylons, each 
about 140ft high. 

Ex-Telegraph 
building ‘sold’ 

Franklin Mint, a direct market- 
ing company, is believed to be 
buying the former headquar- 
ters of the Daily Telegraph in 
the London Docklands for 
about £4m. 

The 104,000 sq ft building 
was sold by the Telegraph to 
Olympia & York in July 1990. 
Telegraph results. Page 10 



FINANCIAL TIMES WEEKEND MAY 14/MAY IS 1994 


financial times 


Number One Southwark Bridge, London SE1 9HL 
Tel: 071-873 3000 Telex: 922L86 Fax: 071-407 5700 

Saturday May 14 1994 


European 

recovery 


Economic recovery in western 
Europe is well under way. The OK 
is in the van, after eight quarters 
of growth, and output la at last 
back at pre-recession levels. But 
others are catching up. This 
week’s surprise reduction in the 
German discount rate, to 4J5 per 
rent, leaves room for more cuts in 
money market rates of interest. 
While continental rates may have 
further to fall, UK interest rates 
may well have readied the bottom 
of their cycle. 

By 1995, economic growth in 
Germany, France and Italy may 
also have overtaken that In the 
UK, as the European Commission 
predicted this week. This is by no 
means bad news for the UK. 
Higher taxes will reduce domestic 
consumer demand. Largely for 
this reason, the Commission fore- 
casts that UK economic growth 
will slow from 2A per cent this 
year to 2J5 per cent in 19%. The 
UK will have to rely on demand 
abroad, for which a strong conti- 
nental recovery win be essential. 

Unfortunately, that recovery is 
not very strong, hi France, for 
example, gross domestic product 
has grown slowly since its trough 
in the first quarter of 1993 and is 
stQl LS per rent below its peak in 
the first quarter of 1992. After £aH- 
ing by 0.8 per cent in 1998, it is 
forecast by the government to 
grow only 1.4 per rent this year. 
But recent evidence suggests it 
may do somewhat better than 
that. Manufacturing output has 
risen in each of the last four 
months. The nnmhgr of non-farm 
employees rose in the first three 
months of 1994, this being the first 
quarterly rise since 1990. 

There was a slight rise in the 
annual rate of inflation, to L7 per 
cent, in April. But it remains very 
low, while monetary policy is stall 
restrictive, because the Bank of 
France continues to align its mon- 
etary policy closely on that of Ger- 
many. This has meant lowering its 
intervention rate in line with 
reductions in Germany’s repur- 
chase (or “repo” rate), even 
though economic conditions in 
France warrant more rapid reduc- 
tions. 

Clear trend 

Although the continental recov- 
ery may not be strong, the trend is 
clear. The same is true of interest 
rates. In the US - and the UK - 
these are on their way upwards, 
or at least on the turn, wMe con- 
tinental rates are st±n falling. The 
latter are likely to go below those 
in the UK quite soon. 

The latest cuts in interest rates 
should accelerate the continental 
recovery, though slowly, since 
monetary policy affects demand 
after a substantial delay. Its effect 
can be felt more quickly via the 
exchange rate. But this will not be 


important for Germany, which 
does a high proportion of its trade 
with countries that tie their 
exchange rates to the D-Mark. 

The US economic recovery, now 
in its fourth year, is further ahead 
than the British, which is why 
interest rates have already been 
increased, to head off inflation. 
The Federal funds rate now stands 
at 3% per cent A further rise 
sppms imminent, despite an unex- 
pected decline in producer prices 
in April. If German monetary pol- 
icy is loosened further, the Bund- 
esbank's discount rate could fan 
below the US Federal funds rate 
later f-hfa year. This relative move- 
ment in national interest rates 
should also help correct the US 
dollar's current weakness, 
although this will depend on other 
fac tors, including the longer-term 
credibility of US monetary policy. 

Improved prospects 

Hie Bundesbank’s latest reduc- 
tion in landing rates is bound to 
improve the prospects for recov- 
ery throughout Europe. Many of 
its neighbours, notably France, 
desperately need this assistance. 
There is a question, however, 
about whether the move was justi- 
fied by domestic German mone- 
tary conditions. It is not often that 
the Bundesbank’s anti-inflation 
credibility is brought into ques- 
tion. But it is cutting rates deeply, 
despite continued rapid growth in 
the broad money supply (M3), 
which grew at an annnaiiseri sea- 
sonally adjusted rate of 15.4 per 
cent between the last quarter of 
1993 and March. This is hugely 
above its 1994 target range of 4 to 
6 per cent. 

The B undesbank argues that the 
cut was justified by the domestic 
outlook for inflation, currently 3 J. 
per cent in west Germany. It also 
argues that the Chang g shmilri 
help reduce monetary growth, by 
encouraging investors to move 
ftmds from bank deposits into 
long-term funds. These arguments 
may well be right, but they also 
conflict with its traditional mone- 
tarism. 

Whether the Bundesbank is mis- 
taken will not be known for some 
years. The immediate prospect for 
European economies is now fairly 
bright They look set to enjoy a 
period of growth with relatively 
low inflation. This is. of course, 
good news. 

But unemployment remains dis- 
turbingly high- lu the UK, even 
after two years of recovery, there 
are still 2.72m people out of work, 
9.7 per cent of the workforce, hi 
France the rate is higher still, as 
is true for Germany as a whole, 
though not west Germany. 
Renewed growth is welcome. It 
must not be used as an excuse for 
taking Europe's structural eco- 
nomic problems off the agenda. 


T he Labour party some- 
times seems to be 
dogged by misfortune. 

hi 1963, on the edge of 
a breakthrough into gov- 
ernment after 13 years in the desert. 
Labour lost Its great leader Hugh 
Gaitskell. In 1974 the second Wilson 
government took office Just after 
tiie huge increase in oil prices; 
Labour then went out of office just 
as oil was beginning to bring in 
millions of pounds of additional rev- 
enue from the North Sea, a God- 
given bonus now largely dissipated. 

Now, at the moment it is once 
again poised to return to office, it 
has lost another remarkable leader, 
one who built on the foundation 
Neil Kinnock laid: aiming to recre- 
ate Labour as a potential party of 

government 

For there is an antibody at work 
in the body politic, a suspicion of 
the Labour party that is based not 
just on memories of the 1979 winter 
of discontent, but on perception of 
Labour as interventionist, obsolete, 
and union-dominated. The percep- 
tion is not altogether fair. 
But it Is extraordinarily persistent 
John Smith's qualities, of pru- 
dence. common sense, seriousness, 
experience and integrity, over and 
above his remarkable gifts as a par- 
liamentarian, went a long way to 
reassure people that Labour had 
put its wild ways behind it. 

It was the need to show that the 
party had changed fundamentally 
that led John Smith to risk so much 
on getting a form of one member, 
one vote through the 1993 Labour 
Party Conference. A cautious politi- 
cian, he understood that more was 
at stake from not attempting the 
reform than from faffing to win -it 
But John Smith’s legacy is not 
just to his party, ft is to his country 
also. At a time when the govern- 
ment and the Conservative party 
are in near-terminal disarray on 
Europe, he provided an example of 
steady commitment to Britain’s 
European future. He was never a 
fanatic; but he understood, through 
all the ups and downs of Britain's 
steamy relationship with the Euro- 
pean Community, Wwt there was no 
other way to go. that Britain's eco- 
nomic future depended upon our 
membership. From his vote for 
entry in 1971 a gainst a three-line 
whip, a very brave act for an aspir- 
ing and ambitious young politician, 
John Smith never wavered. 

He was a devolutionist, a man 

who imflpr stnnfl that ’harnpysing ttia 

energies of the countries and 
regions of Britain would stimulate 
enterprise and innovation, that 
Westminster and Whitehall needed 
to be open to new ideas from 
beyond their own ti ght and incestu- 
ous circle. His roots deep in Scot- 
land, and hi the Labour culture of 
Strathclyde, fed that strong sense of 
regional autonomy. 

The former Labour leader saw 
how local government is being 
eroded by the aiithnritflriflTiism of 
central government, and he 
deplored it He could, however, 
never bring himself to support pro- 
portional representation for local 
elections, even though that would 
almost certainly have ended the 
domination of certain local councils 
by the “loony left" - or. for that 
matter, the loony right. 

John Smith was a man who 
believed in the ethos of public ser- 
vice. Nothing exemplified that bet- 
ter than the concluding words of his 
last speech, the day before he died. 
His sense of public service ran 
much deeper than words in 
speeches. Again, at a time when the 
tradition of public service and of 
civic integrity seems to have been 
relegated to history, abandoned 
even by some of those charged with 


Shirley Williams says the European 
elections will be a vital step in redefining 
UK politics after John Smith’s death 

An opportunity 
to end adversity 



Fluctuating fortunes: Ramsay MacDonald saw the Labour party share of the vote rise to 37.1 per cent in 1929. 
Under Clement Attlee in 1945 ft reached 47.8 per cent When Harold Wilson first became prime minister in 1964 
it was 44.1 per cent. The Liberal decline had appeared terminal in 1951 when the party won only 2J> per cent. 
Under the leadership of Jo Grimond, however, it began to pick and the recovery may not have stopped 


upholding it as the evidence to the 
Scott inquiry shows, John Smith's 
example deserves to be honoured 
and followed. 

The genuine response of grief at 
his death seems to demonstrate a 
hunger for more substantial and 
more constructive politics, for an 
end to the media frenzy over sexual 
and fhmmrial scandals, and tO the 
political behaviour that feeds it 

John Smith’s many 
qualities went a long 
way to reassure 
people that Labour 
had put its wild ways 
behind it 


In choosing his successor, the 
Labour party will make a fateful 
choice. It will choose its political 
strategy up to and beyond the next 
general election. It will close or 
open doors to co-operation with 
other parties in areas where Labour 
cannot command a majority. 

John Smith believed the Labour 
party could win a majority at a gen- 
eral election; or, at least, he 
behaved as if he believed that Yet 
the local government results on 


May 5 cast further doubt on the 
validity of that belief. While an 
apparent triumph for Labour, the 
truth of the matter is that the only 
winners were the Liberal Democrats 
and the Scottish Nationalists. 

As The Economist pointed out 
this week, in England it was not 
Labour that picked up disillusioned 
Tory voters, a further 5 pa- cent 
drop on the Conservative party's 
already low share of the vote in 
1990. It was the Liberal Democrats. 
And it was in the Tory heartlands 
that the largest proportion of previ- 
ous Tory voters defected to the Lib- 
eral Democrats. 

Whatever the opinion palls show, 
Labour finds it difficult to get above 
a 40 per cent share of the real vote. 
It has not done so at a general elec- 
tion even once since 1979. Further- 
more, its position is slowly eroding, 
not so much because of marginal 
losses as a result of boundary 
changes, but because demography 
and industrial organisation work 
against ft. Ours is an ageing society; 
it is also nnp in which the manufac- 
turing industry and the public ser- 
vices on which trades unionism 
depended are losing jobs to an indi- 
vidualistic and fragmented private 
service sector. 

In consequence, Britain is becom- 
ing a three-party country, four in 


Scotland; or more accurately, a 
country in which two parties con- 
tend in particular constituencies 
and regions, but not the same two 
parties. It is the Liberal Democrats 
who are now the main opposition 
party in the south and west. Labour 
in the north and in London, though 
even that is beginning to change. 

Given that neither national oppo- 
sition party may win an overall 

The most important 
issue of all for the 
country’s future Is 
the role we will play 
In the European 
Union 


majority, and given too the need for 
an effective and convincing chal- 
lenge to a government that has run 
out of time, ideas and morale, how 
should we proceed? 

Some advocate an electoral pact, 
but any such pact would be passion- 
ately opposed by many in both of 
the main opposition parties. Nor is 
it clear that party headquarters 
could make their local parties 
adhere to any such pact Many dis- 
sfllustoned Tories would find such a 


pact reason for not voting at aft 

What is needed instead la to buBd 
habits of co-operation, to mote 
Britain away from the poUtfcs of 
confrontation to at least sane ele- 
ment of consensus on the country's 
most important goals. 

In the effort to save local govetn- 
ment as an Important and valuable 
part of the body politic, that Is 
already happening. Up and down 
the country, especially in the shire 
counties. Liberal Democrats and 
Labour, sometimes Liberal Demo- 
crats and Conservatives, and even 
in a few places Labour and Conser- 
vative, are working together. On 
local government reorganisation, B 
very large part of the Conservative 
party finds itself closer to the other 
parties than to Us own government. 
In a recent debate on the Local Gov- 
ernment Commission in the House 
of Lords, only the ministers, one 
backbench Conservative peer and 
three Labour peers spoke up for 
official policy. Every other Conser- 
vative, independent, Liberal Demo, 
crat and cross-bench peer spoke on 
the other side. 

The most important issue of all 
for the country's future is the role 
we will play in the European Union. 
The shape of that Union wifi be 
profoundly affected by the two 
enlargements now envisaged, for 
Austria and the Scandinavians, and 
beyond that for the VIsegrad group 
of central and east European coun- 
tries. ft will also be affected by the 
Inter-Governmental Conference of 
1996 which trill determine the insti- 
tutional changes needed to cope 
with those enla rgements. 

B ritain has a significant 
interest In the outcome 
of the IGC, but the truth 
of the matter is that lit- 
tle constructive input is 
likely from a deeply riven govern- 
ment. One senior German offici al 
said to me at a conference earlier 
this week: “From London, we get 
nothing." 

Yet Britain has much to contrib- 
ute to the IGC. Among politicians of 
all parties who believe in Britain’s 
continued membership of the 
Union, there is a concern to build a 
stronger democratic base, to involve 
national parliaments more closely, 
to make subsidiarity meaningful, 
and to open up the deliberations of 
the Council of Ministers so that gov- 
ernments cannot evade responsibil- 
ity for their decisions. Indeed, the 
attack on “the faceless bureaucrats 
or Brussels" is often a diversion 
from the unaccountable actions of 
ministers, including our own. 

The European elections are likely 
to produce for the first time a group 
of Liberal Democrat MEPs, and 
probably a number of additional 
Labour members. On these MEPs, 
and on reflected MEPs, some of 
whom have made a distinguished 
contribution to the European Par- 
liament, will fall the responsibility 
to consult, discuss and formulate, 
together with their parties at home, 
proposals for the IGC. 

These wifi not be official propos- 
als. but constructive ideas from 
British opposition parties - and 
indeed from European-minded Con- 
servative MEPs - are likely to be 
heard by other governments in the 
Union, and perhaps even by our 
own. Britain's contribution must 
not be allowed to go by default 
The issues now at the heart of 
British politics are too important to 
be left to a weak and discredited 
government. John Smith cared 
about issues in politics that mat- 
tered. His successor will, if he or 
she is wise, be able to do something 
about flip™ 

The author is a fanner Labour 
education secretary 


MAN IN THE NEWS: Garry and Galen Weston 


Brothers in a 
bun fight 



L ike latter-day Roman 
emperors, two brothers run 
the halves of a sprawling 
food business which has 
brought their family considerable 
wealth - estimated to run into bil- 
lions of pounds, but largely owned 
by charitable foundations. 

Garry Weston, 67, tall and some- 
what shambling, resembles a wise, 
old family doctor, complete with in- 
trimmed moustache and under- 
standing manner. Galen Weston, 53. 
is also silver haired and tall, but he 
is dapper, a friend of princes, and a 
renowned polo player. 

As Garry says in his quiet, under- 
stated fashion: “Our personalities 
are rather different He has done his 
thing. Fve done mine." 

This week, Garry announced 
plans to reorganise the sharehold- 
ings owned by his family and a 
charity in Associated British Foods 
for tax-planning purposes. While 
some observers saw this as a loos- 
ening of the family’s grip on the 
business, Garry says he is deter- 
mined that the dynasty will retain 

control. 

The Westons’ is a remarkable 
saga. Cockney William Weston, 
bom in 1820, emigrated to Toronto, 
where Ms son George was bom in 
1865. After founding a baking busi- 
ness be died young, leaving Ms son 
Willard Garfield, known as Garfield, 
bom in 1898, to take over. 

Garfield, who lived until 1976, 
fathered nine children, three of 
them boys, and set out he said, “to 
build a business that would never 
know completion". ‘Growth forever* 
could have been his motto. 

He moved to the UK and went on 
an acquisition spree. In 1935 he took 
his Allied Bakeries company public, 
later changing its name to ABF. As 
his health began to fail, he called on 
two of his sons to take over the 


business. In 1967 he asked Garry, 
who had set up an Australian sub- 
sidiary, to run ABF, the “eastern" 
empire, covering the UK and 
Europe, South Africa, Australia and 
New Zealand. 

Some years later, Galen, who had 
been r unning the Irish business and 
married an Irish model, was per- 
suaded to go “home” to head the 
North American empire. 

Since then, the paths of the two 
brothers have seldom crossed, even 
though each is on the other’s board. 
Garry is cu rrently angry about an 
article in this month’s issue of the 
magazine Vanity Fair. It contains 
“a lot of free chat about my father I 
don't agree with at all", he says. His 
irritation is directed at Galen, who 
was interviewed for the story and 
whose Florida beach resort is the 
focus of attention. 

The article suggests that Garfield 
groomed his sons to take over the 
business. “A piece of stupidity," 
says Garry. “Apart from the oppor- 
tunity of a good education. I 
received no training at all At 23, 1 
was given the opportunity to take 
charge of a email company mating 
a not very well-known brand, 
Ryvita. I taught myself to run the 
business." 

He is clearly proud of turning the 
crispbread Mo a household name 
and also Of inventing and naming 
Wagon Wheel chocolate biscuits. 

Garry thinks he has inherited 
some of his father’s “ideals and 
most of his motivation. Apart from 
that I am not temperamentally like 
him. I’ve not got the charisma he 
had.” Galen is like their father “in 
some ways", says Garry. "He acts 
more like an owner than a man- 
ager. He is restless like my father." 

Garry says he is more like his 
elder brother. Grainger, who left the 
business years ago and became 


a Texas rancher. 

When he was summoned home 
from Australia to chair ABF. the 
S unblest bread and Twining teas 
group, Garry found a business with 
a rambling structure, low profits 
and mare than 180 people reporting 
directly to Ms father, who by then 
spent only half his time in the UK. 

Garry pulled the business into 
shape, selling subsidiaries at a pre- 
mium, and eventnally buying Brit- 
ish Sugar for £880m in 1991. The 
ABF group, worth £9im when he 
became chairman, is now valued at 
£2.6bn. 

When Galen took over the North 
American company he found a simi- 
lar mess. According to Vanity Fair, 
he performed a “textbook turn- 
around" of a business in a state of 
near bankruptcy and “whipped that 
chaotic collection of more than 200 
companies and subsidiaries into a 
sensible, streamlined organisation". 

Garry is less generous. “He has 
recruited some very good execu- 
tives and leaves them in charge. 
That leaves Mm a lot of time for his 
social life," he says. Garry, some- 
thing of a loner, puts family first. 

The North American company, 
George Weston, controls the Loblaw 
supermarket chain and has inter- 
ests in cyclical industries such as 
paper. It is majority-owned by 
Galen and another charity and, 
according to Garry, has performed 


badly for the past three years. “The 
company’s shape is very much like 
it was 20 years ago. There has not 
been a sell-off or a British Sugar,” 
he adds. 

While the two emperors run their 
separate domains, they face a com- 
mon problem: the succession. Garry 
has six children, three of each 
The sons - Guy, George and Garth 
- all work in ABF, the youngest as 
a management trainee where, says 
Gerry, “there are a lot of opportuni- 
ties for bright young men and my 
sons will have to compete with 
them”. Two of Ms daughters work 
for Fortnum & Mason, the Picca- 
dilly department store also owned 
by the family. 

Will the next chairman of AB 
Foods be a Weston? “That’s a long 
way off, I hope," says Cany, and 
adds: “There are a lot of able people 
in the company." Whoever chairs 
the business, though, he expects 
the family to retain its sharehold- 
ing. 

As for Galen's half of the empire, 
it is too early to say whether his 
son or daughter, both bom in 1972 
and still in full-time education, will 
follow him Into the business. But 
even if they do, the division 
between the two sides of the family 
can only grow wider. 

Maggie Urry 


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9 


Showdown over French skies 

John Ridding and Paul Betts say the 
clash between British airlines and 
the Paris government tests Europe's 
policy of deregulating air travel 



M r Andrew Gray, mart 
aging director of Air 
UK, is exasperated: "I 
cant believe in thi? 
day and age it will come to pistols 
at dawn," 

Bat as bis airline, along with Brit- 
ish Airways and BA's, French affili- 
ate TAT. prepares to d efy the 
French government and T ^nrh ser- 
vices on Monday between London 
and Oriy Airport in Paris, a show- 
down seems hard to avoid. 

"It is sin absolute test case," says 
one airline executive, “if the French 
are allowed to win, the European 
Commission's plans for airline dere- 
gulation mean little", Is adds, as 
UK and French government officially 
were yesterday attempting to 
resolve the dispute. 

The row has erupted since 
Wednesday when Mr Bernard Bos- 
son, the French transport minister, 
declared that UK carriers could not 
start flying to Orly on Monday 
despite last month’s ruling by the 
Commission that the French gov- 
ernment must open the airport to 
competition immediately. 

The dispute goes to the heart of 
European efforts during the past 
three years to liberalise air trans- 
port and create a deregulated single 
European aviation market. Apart 
from provoking fresh strains 
between two of the European 
Union’s biggest partners, it has 
brought to the fore the wide gulf in 
approach to airline deregulation 
adapted by different EU countries. 

It has highlighted the split 
between the liberal camp - coun- 
tries such as the UK, the Nether- 
lands and increasingly Germany - 
and the more interventionist mem- 
ber states led by France and includ- 
ing Italy. Spain, Greece, Portugal 
and Belgium. The latter group 
opposes USstyle free-for-all airline 
competition and is pressing for a 
controlled process of deregulation. 
The immediate issue in what is 


being described as “the Battle lor 
Orly” is access to French domestic 
routes and France’s readiness to lib- 
eralise its airlinemarket in line 
with Europe's “open skies” policies. 
The stakes are high, and tempers 
have become frayed. The UK gov- 
ernment has placed its “full back- 
ing” behind the UK carriers. 

Mr Bosson elating the French gov- 
ernment remains committed to 
opening Orly to more competition, 
hut he said UK flights could sot 
start until a number of problems 
have been resolved. These include 


row airport tor French aflfljnaa . Hie 
French transport ministry believes 
these problems can be resolved 
“within a matter of weeks”, and 
says it does not understand the 
“strong-arm tactics” being 
employed by the British carriers. 

The demand that services to Oriy 
be delayed; however, has prompted 
a strong reaction. “The French 
authorities have no right to prevent 
us from flying to Oriy,” says Mr 
David Holmes. BA’s head of govern- 
ment affairs. He argues that Air 


Hnpa fli ghts from T/mHim to Orly 
would provide a strong foothold 
into the lucrative domestic French 
market. Orly, in southern Paris, 
also provides better connections to 
internal French fli gh t s than does 
Charles de Gaulle. 

“Flying to Orly would strengthen 
our competitive position against the 
Hfomnal t unnel, ” Mr Hnfrnes says. 
“We believe that Orly will prove 
more popular than Charles de 
GauQe," adds Mr Gray, whose Air 
UK airline wants to serve Orly from 


market ha addition to its ruling cm 
Orly, the Commission ordered 
France to open the Orly-MarseiZles 
and Oriy-Toutouse routes to compe- 
tition within six months These are 
among the busiest routes m Europe 
and are currently operated as a 
monopoly by the French domestic 
carrier Air Inter, part of the Air 
France group. From 1997, according 
to the Commission, all routes 
within France and other EU 
member countries most be liberal- 
ised. 

This all adds up to a iffl emm^ for 
the French government, which is 


transport market to competition. 
The capital increase, to take pfar* 
over three years, is the centre piece 
of a rescue plan for Air France, 
which last year incurred losses of 
FFr&Shn. 

The French state airline’s capital 
increase proposal has already anta- 
gonised Air France's big European 
airline competitors - not only BA 
but also Lufthansa of Germany - 
which are campaigning in Brussels 
against the con tinning use of state 
subsidies to baQ out loss-making 
national Hag carriers. 

“The artificial mainten ance of 
state-funded airlines rnnthnwii to 
provide the biggest obstacle to the 
development of a truly free, deregu- 


lated market,” says Sir Michael 
Bishop, chairman of British Mid- 
land Airways, the second largest 
UK scheduled carrier which also 
plans to start services from Heath- 
row to Oriy later this year. 

Many French consumers also 
favour deregulation. “Of coarse I 
want more competition,” says the 
director of a French company. 
“When I travel to Britain there is 
usually a chnif*> of airlines." 

But these incentives to deregulate 
the French market are countered by 
other factors. Unions at Air Inter 
oppose liberalisation. “We will not 
be the sacrifice for Commission 
approval of Air France’s rescue 
package,” says an official of the 


Confederation GdnSrale du Travail, 
cme of the airline’s largest unions. 
The unions have called a strike on 
Tuesday to demand that competi- 
tion be introduced only in “progres- 
sive steps”. Air Inter is also reluc- 
tant to lose its monopoly on some of 
its most profitable routes having 
lost FFr257m last year. 

The dilemma is clearly felt by Mr 
Bosson. “I am accused of being an 
ultra-liberal by the unions and an 
ultra-protectionist by Brussels” he 
complained last month. 

But there is a deeper resistance to 
the process of deregulation in 
France inherited from the country's 
diriffiste economic tradition. “The 
EU is not simply a zone of free 


trade, haring for its only value the 
laws of the market,” Mr Bosson said 
in response to the socaHed “wise 
men’s” report an airline deregula- 
tion puHfahed last year. The report 
called for full Hh areb satirm of Euro- 
pean routes by 1997. “The EU must 
also include a social vision, the val- 
ues of regional development and 
public service, which are ignored by 
considerations of profitability,” ha 
argued. 

The result of these conflicting 
interests has been an attempt to 
play for time and fight for every 
step in the battle far deregulation. 
In addition to the delays announced 
on Wednesday, Paris is appealing to 
the European Court of Justice about 
the procedures used in tbe decision 
to liberalise the Toulouse and Mar- 
seilles routes. 

However, the need to secure the 
FFrzobn capital increase for Air 
France is likely to be the priority. 
“After the strikes of last October 
which forced the cfrmbdown by the 
Balladur government. Air France 
has become a powerful political 
symbol,” said one airline consultant 
in Paris. “They cannot afford a 
refusal of the capital increase." 

To assist the process of liberalisa- 
tion. opposition from Air Inter may 
be reduced by a reorganisation of 
its relationship with Air France, a 
prospect that was raised by Mr Bos- 
son in an address to the National 
Assembly on Wednesday. The reor- 
ganisation seems designed to sa tiety 
Air hater's long-standing demands 
for a more autonomous manage- 
ment from its parent 

Placating Air Inter will, however, 
take time. And with BA and Air UK 
planning to touch down in Oriy on 
Monday, time is something that the 
French authorities do not have. As 
one UK airline executive put It: 
“The French government has 
pushed itself in a corner; the 
moment of truth is due to arrive on 
the &50 flight from London." 


France already has open access to 
Heathrow and operates more flights 

to the London airport from the &ced with conflicting pressures, 
other Paris airport of Charles de The Commission has link ed 
Gaulle than BA itself. approval of a FFr20bn capital injeo- 

The high emotions reflect the tion fra* Air France to progress in 
importance of the issue. For UK air- opening up the domestic French air 


London s Stansted airport 
the implementation of measures to For UK earners the Oriy dispute 
ease congestion at Orly and is also a broader test case for the 
improved access to London’s Heath- liberalisation of the French airline 


T he sign pasted up over 
the meat counter in 
the Stftssgen super- 
market in a Bonn sub- 
urb this week said it all 
“Buying meat is a matter of 
trust,” it declared. “We sell 
only German quality beet” 

To any German consumer, 
the message is dean it means 
there Is no British beef on the 
counter. Fra: in the refafa of 
most German consumers in 
recent weeks, tbe words Brit 
ish bed have become synony- 
mous with a fear of human 
infection with “mad cow dis- 
ease" - bovine spongiform 
encephalopathy (BSE). 

The Bonn butcher was 
relaxed enough: Tve been, get? 
ting questions from my;cp8 i -. 
tomers an right, wanting, to „ 
know where the beef was fremp 

reassuxed. They know 'w© oifly 
sell fresh local meat.” ' 

Yet statistics for all beef 
sales in Germany in' recent 
weeks' suggest otherwise. Tbe 
German wholesale meat trad- 
ers’ a&ocfrtion claimed yester- 
day there had been “a dra- 
mafid'^dump in sales”. The 
butchers’ federation in Frank- 
fort $aid the decline was at 
feast 5 per cent fn the past few 
weeks, since Mr Herat Seeho- 
ler, the health minister, first 
suggested that a selective ban 
on British beef imports was 
needed to protect the public 
against the threat of BSE. 

The row threatens to blow 
up into a serious confronta- 
tion, not just between Britain 
and Germany, but also 
between Germany and the rest 
of the European Union. The 
European Commission has 
until now accepted that Britain 
has done enough to control 
BSE, and prevent any danger 
of its spreading to other mem- 
ber states. It is considering 
toughs 1 enforcement, but noth- 
ing so drastic as an import 
ban. Yet that is what Germany 
is threatening to enact unilat- 
erally if there is no compro- 
mise agreed by agriculture 
ministers by May 30. 

The battle over BSE looks 
like becoming a classic recoa- 
Gnnation of national preju- 
dices in Britain a^d Germany: 
the farmer complaining of Ger- 
man fanaticism and high-hand- 
edness. the latter of sloppy 
British standards in vital areas 


Quentin Peel and Alison Maitland examine the 
dispute over British beef exports to Germany 

Facts fall victim to 
the butcher’s knife 


. ,*»•' ■, ■■■ i. -.** ■ 

• - V. •• •» t . • “ 



LydiVMDvMHr 

Fur Germans, the words British beef have become synonymous with a fear of human infection 


of public health and environ- 
mental awareness. 

; Yet the experts on both sides 
are far more divided than the 
battle-lines suggest. In Ger- 
many, the fanners' union has 
sharply criticised Mr Seeh o far 
for threatening to go it alone 
in his battle with Brussels. 
They fear that the backlash 
will hit far more important 
interests - like their campaign 
for more money from Brussels 
for German farmers who have 
been forced to slaughter some 
800,000 pigs because of swine 
fever in the past six months. 

There is also a widespread 
recognition that German con- 
sumers are notoriously prone 
to overreaction in anything 
concerning food health - an 
overreaction compounded 
when politicians get involved. 

(hi tiie other hand, in Britain 
there are a number of scien- 
tists who would support the 
German health minister in bis 
contention that as long as 
there is the slightest possibility 
that BSE might cause human 
infection, the strictest possible 
controls should be enforced. 

In spite of the BSE scare, 
total British beef exports rose 
51 pa- cent last year to £407m. 


which the British Meat and 
livestock Commission attri- 
butes to successful marketing 
and the devaluation of sterling. 
Same £358m of that went to the 
EU, with France by far the 
largest importer - to the tune 
of £I88m - and Germany the 
smallest, taking only 900 
tonnes, worth 22.6m. 

The British government says 
the German debate has not 

Experts on both 
sides are far 
more divided than 
the battle-lines 
suggest 

only hit beef exports - they 
totalled 2,000 tonnes to Ger- 
many in 1992 - but b>mh and 
pork sales as well But the real 
British concern is the domestic 
beef market, which earned 
British farmers £XA5bn last 
year. 

German observers are quick 
to point out the irony of tbe 
situation. *T am amazed that 
even while there are thousands 
of animate still being slaugh- 
tered in the UK because of 


BSE, the British consumer 
does not appear to be con- 
cerned," said Mr Richard 
Brflcker, head of the livestock 
section in the German farmers’ 
union (DBV). “Yet here in Ger- 
many, where we really don't 
have the problem at all, the 
consumers are all up in arms. 
It’s quite contradictory.” 

Tbe BSE scare in Germany is 
only the latest in a string of 
food health scares. 

One of the most startling 
was the thread worm crisis 
which threatened to devastate 
thp Ge rman flsh market in 
1987: a single television pro- 
gramme suggesting that fresh 
fish contained live worms 
when they got to the fishmong- 
er’s slab caused a dramatic 
slump in consumption. Per 
capita, the level dropped from 
1&2 kg in 1986 to 1L8 kg in 
1967, as panic spread through 
the fish-buying public. 

“There was an hysterical 
outcry to begin with," said Mr 
Matthias Keller, chief execu- 
tive of the Hamburg-based fish- 
ing industry association. “But 
the consumers listened to rea- 
son in the mid." That was not 
until the European Commis- 
sion, the German government, 


and the industry had launched 
a big and costly public rela- 
tions «nrwrrlaa 

Another good example of 
Germany’s special sensitivity 
was over the fall-out from 
Chernobyl. Watercress growing 
along the German hanir of the 
river Rhine was tom up and 
destroyed. The whip plant on 
the French bank was cheer- 
fully harvested and . sold - 
some of It to Germany. 

BSE looks to be another case 
where Germany is determined 
to be stricter than all its neigh- 
bouring states. Mr Brttcker 
blames politicians in general, 
and Mr Saahflffrr in particular. 

“He has set himself up as the 
great consumer’s protector,” 
he said. “But he is risking his 

nark in thin cODfrOPfatiOO with 

th« Brussels Commission." 

If Mr Reehofer is under 
attack on his hnme front, Mrs 
Gillian Shephard the Brit- 
ish Agriculture Ministry are 
also open to criticism. 

Dr Stephen Dealler, a micro- 
biologist at York District Hos- 
pital who has researched BSE, 
says the Germans are right to 
want to take action, to protect 
their consumes 

“If you sit and wait, you’re 
taking a risk of unkno wn pro- 
portions,” he said. “The Ger- 
mans are saying 'We’re not 
going to take this risk, it’s too 
high.’ 'Ihey're right.” 

Scientific tests on other ani- 
mal species and bis own calcu- 
lations, based on agriculture 
ministry and other scientific 
data, suggested the risk that 
BSE could cross the “species 
barrier” from cows to humans 
was high, he said. 

Cattle become infected when 
very young but the incubation 
period is four to seven years, 
he said. The risk of infecti o n 
grows as the incubation period 
advances. “For every cow 
we’re slaughtering with the 
disease, we’re eating five to six 
others while they're Incubating 
it but showing no signs of it,” 
he added. 

Now it is up to the EU agri- 
culture ministers to find a 
compromise. They will be hard 
put to do so. For the real differ- 
ence between Britain and Ger- 
many is not about scientific 
evidence. It is about d i ffere nt 
public perceptions of what con- 
stitutes a food danger to 
health. It is a question of cul- 
ture, not. of fact 


I f looks tell all, the glum 
face of - President Oscar 
Luigi Scalfaro this week 
said a lot about Us rela- 
tions with Italy’s new govern- 
ment hp o deii by mindfn mag- 
nate turned politician Silvio 
Berlusconi. 

The president, usually cour- 
teous to the pnh^t of unctuous- 
ness, could have anfied when 
he swore in Mr Berlusconi as 
Italy’s 53rd post-war premier. 
But tiie atmosphere between 
the two men was icy. 

Mr Berlusconi did Us best to 
ignore the stand-off by beam- 
ing with pride as his -mandate 
was formally confirmed. As a 
result the occasion appeared 
like a pupil collecting top 
prize from a stern headrmaster 
who still doubted whether tiie 
prize was deserved. 

Subsequently both sides 
have gone to great lengths to 
m o te the impression they get 
along famously. “My relations 
with the president are very 
cordial (cordialissimi),” Mr 
Berlusconi insisted. 

Yet suspicious journalists 
immediately saw the superior 
five as so glowing as to be 
barbed. Surely, they asked in 
their «JnmM yesterday, this 
was a classic instance of a per- 
son meaning the opposite of 
what was said? 

This is an u npr op i tious start 
for an Inexperienced govern- 
ment (23 of the 25 strong cabi- 
net are ministerial novices) 
and a prime minister who is 
an unknown quantity as a pol- 
itician having only resigned 
executive duties at bis Fin- 
invest media empire In Janu- 
ary. The impression of two 
leaders not seeing eye to eye 
was fuelled by the disclosure 
of the contents of a letter Pres- 
ident Scalfaro sent to Mr Ber- 
lusconi. 

Dispatched cm Monday while 
Mr Berlusconi was in the 
throes of forming his cabinet 
list, President Scalfaro curtly 
reminded Mw of his responsi- 
bilities. Behind the formal lan- 
guage the president In effect 
warned Mr Berlusconi that 
Italians needed reassurances 
about the nature of the gov- 
ernment given that it was 
going to contain the federalist 
Northern League and neo-fas- 
cists who draw their roots 
from Mussolini’s corporatiat 
state. 

The move was unprece- 


Old 

versus 

new 

Robert Graham 

on relations 
between Italy’s 
president and 
prime minister 

dented for an Italian head of 
state pushed Ms role as 
guarantor of the constitution, 
to (he limits. In pri v at e the 
president had also stressed the 
need for Mr Berlusconi to 
avoid a conflict of interest 
with Ms business empire. The 
president was instrumental in 
blocking the tycoon’s lawyer, 
Mr Cesare Previti, from occu- 
pying the justice ministry. 

R elations between the 
75 year-old head of 
state and Mr Berlus- 
coni do not pose tiie 
same problems as the Mltter- 
rand/Balladnr “cohabitation” 
in France as the Italian presi- 
dency has no e xec utive func- 
tions. But a good working 
r ela tio nship between the two 
is important for the stability 
of the government. 

If relations deterior ate , Mr 
Berlusconi will be under pres- 
sure from his allies in the pop- 
ulist Northern League and the 
neofascist MSI/National Alli- 
ance to force President Scaifar- 
o’s resignation. Both parties 
have lobbies who say he 
should be removed because he 
represents tiie Italy they are 
battling to change in the new 
“second republic”. 

The Italian president has 
heavily circumscribed powers 
under tbe post-War constitu- 
tion. drawn up with tiie aim of 
avoiding too much power in 
any one person’s hands. The 
head of state Is not directly 
elected hut chosen by parlia- 
ment for a seven year term He 
can dissolve parliament and 
nominate the prime minister. 
But parliament can only be 


dissolved If it agrees - «u*t is 
when a government falls or 
has obviously exhausted its 
mandate. The power to chose 
the prime minister depends on 
the win of the electorate as 
expressed through the ballot 
box. The president's authority 
therefore depends upon his 
political feel and tiie extent to 
which Ms integrity allows Mm 
to wwHw moral suasion in 
private or via public opinion. 

President Scalfaro, a fanner 
Christian Democrat interior 
wrfniBtef and of the coun- 
try’s longest serving parlia- 
mentarians, was elected in 
1992 as a compromise candi- 
date. He was chosen in a deal 
between the then dominant 
Christian Democrats and the 
Socialists. Other candidates 
were rendered ineligible by 
cor r up tion scandals. 

In difficult circumstances. 
President Scalfaro has pre- 
sided with dignity and had 
considerable influence over 
the tumultuous transition of 
the past two years. He played 
a major part in nominating Mr 
Giuliano Amato as Socialist 
premier in 1992 and then turn- 
ing to the non-politicai Mr 
Carlo Axegiio Ciampi, former 
central Bank governor, as the 
parliamentary coalition hack- 
ing the government began to 
collapse in 1993. He can also 
take credit for encouraging 
electoral reform that led to the 
appearance of Ur Berlusconi’s 
Forza Italia. 

However, in the transition 
process Mr Scalfaro has been 
tainted by accusations from 
top former members of the 
intelligence services, now on 
trial for alleged corruption. 
They claim that as interior 
minister he knew about the 
abuse of secret funds. Even if 
no more than scurrilous def- 
amation, the accusations Iden- 
tify President Scalfaro with a 
political system Italy has 
voted to change. 

There is thus a danger that 
any conflict between the presi- 
dency and the Berlusconi gov- 
ernment will develop into a 
battle between the old and the 
new. Such a confrontation 
may only be avoided if more 
extreme elements in the 
League and the MSI deride to 
focus political energies on 
other priorities - such as 
creating jobs and deregulating 
an over-regulated economy. 


It is quality that counts 


LETTERS TO THE EDITOR 


Way ahead on CrossRail 


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 

Basic research vital to aeronautics’ future 


From Mr B P Anttitage. 

Sir, Your bMriHrm “Students 
spurn accountancy jobs” (May 
6) reflects neither the content 
of the story nor the reality of 
the intake into the accoun- 
tancy profession. 

While it is correct that the 
total intake has fallen, 
reflecting lower demand 
among accountancy Arms dur- 
ing the recession, a recent sur- 
vey by Graduate Appointments 
showed accountancy as the 
most popular choice of careers 
among graduates. 

The high calibre of those 
seeking training contracts is 
reflected by the record 74 per 
cent of graduate entrants last 
year with first and upper sec- 
ond deg rees, anf i the increase 
flam. 487 to 491 in those from 
Oxbridge. 


From Mr Michael Hull 

Sir, hi your article, “Sums 
don’t add np” (May 18), on 
declining numbers at indepen- 
dent schools mention is made 
of an ex-Bton Head’s “over-en- 
thusiastic use of capital pun- 


increased again - to 78 per 
cent - while firms report con- 
tinuing high interest for top 
graduates for places this Sep- 
tember. 

It was the supply of places 
available, not student d emand , 
which, had fallen. 

The institute’s finances are 
not threatened as you suggest 
because the high quality of 
graduates going through train- 
ing is ensuring that the num- 
bers qualifying and subse- 
quently joining the Institute 
are keeping the total member- 
ship an a rising trend. 

E P Anrdtage, 
director, education and 
trainin g. 

Institute of Chartered Accoun- 
tants in England and Wales, 

Chartered Accountants Ball, 
Moorgate Place, 

London ECS 


Michael Hull 
22 Farm Road. 
Fridley, 
Surrey GUIS 


From Prcfess o r Keith Hayward. 

Sir, I refer to Ehnua Tucker's 
article, “The drift towards 
managed trade” in your 
Exporter supplement Ofay 5). 
The Department of Trade and 
Tni hudr y has iwrfarinly given its 

backing to the National Tech- 
nology Acquisition Plan for the 
British aerospace industry. 
What it, or rather the govern- 
ment, has not done is provide 


From Beoerend Michael Shaw. 

Sir, The Nicholas Scott deba- 
cle ("Labour clamours for min- 
ister’s resignation”. May 11) 
pats ub all in danger of throw- 
ing out the baby with the bath- 
water. Not for the first time, 
the real issues surrounding <£&> 
abled people appear to have 
been tost as the political storm 
gathers momentum. Disabled 


Over the last three years, the 
annual budget allo c a ti o n under 
the DTTs civil aeronautics 
research programme has fallen 
by nearly £8m- Admittedly, 
plans for the next two years 
show a slight rise to about 
£22.7m a year, but this includes 
substantial payments to the 
European Transonic Wtodtun- 
nel project Even so, in the 
view of those who compiled the 
National Technology Acquisi- 
tion Flan, wffi be inade- 


have been pushed hack into 
the shadows. 

Back to basics fa not a fash- 
ionable concept However, get- 
ting down to tbe nitty-gritty of 
ensuring that disabled people 
emerge from the dvil rights 
wilder ness in which they find 

themselves is something virtu- 


quate to sustain the UK aero- 
space technology base into the 
next century. 

Money Invested in basic 
research Is not a question of 
trying to pick individnal “win- 
ners”; it is an Investment in an 
entire industry. Aeronautical 
BAD at this level will also 
have an impact on other high- 
technology industries. But 
even if the benefits were exclu- 
sive to tbe aerospace sector, 
they would underpin an export 


ally everyone can begin to 
. tackle: from seeing the person, 
not just the wheelchair, 
through to providing sensible 
and accessible housing, wheel- 
chair-friendly public buildings 
and streets, decant public 
transport and appropriate 
work opportunities. 

The law must be changed. 
But in the absence of sound 


potential well into the next 
century. 

Ministers proudly point to 
the current performance of 
British aerospace companies, 
but without investment over 
the long haul, this could be the 
last flash of flame before the 
match goes out. 

Keith Hayward, 

Staffordshire University, 

School of Social Sciences, 
College Road, 

Stoffron-Trent 


political thinking and sensible 
legislation, let us see some pos- 
itive actions from the planners, 
architects and employers who 
really can make tiie difference 
Michael Shaw, 
executive director, 

John Grooms A sso ci ation for 
Disabled People, 

20 Gloucester Mae. 

Finsbury Park, London N4 


From Mr Jeremy Bayhss. 

Sir, Your report that Mr Ste- 
ven Norris, transport minister 
for London, said that the 
CrossRail project is not dead 
(“CrossRail rejection leaves BR 
plans in disarray”. May 11) is 
to be welcomed. If the govern- 
ment is going to bring the proj- 
ect forward in another way, it 
must do so with the same 
urgency and resolve which has 
given US the Channel formal 

While London will suffer if 
this much needed project is 
dropped, for it to be held in 
abeyance with continuing 
uncertainty will prolong blight 
for the occupiers and owners of 
property across central Lon- 
don, extending from beyond 
Paddington in the west to 


Rom Mr Roland Show. 

Sir, hi your article about the 
appointment of Sir Michael 
Palliser to the board of the 
Exploration Company of Louis- 
iana (People, May 10), you said 
that given his age (72) “there is 
some surprise that he is taking 
on additional directorships”. 

May I remind you that Sir 


Liverpool Street in the east 
Derisive action must now be 
taken either to bring the 
scheme forwards in another 
way or, if this is not to be 
done, to remove the blight 
wMch has now affected this 

part of London for almost three 
years, by removing the safe- 
guarding of the route. Alterna- 
tively, the government should 
change the compensation code 
to enable residents and busi- 
nesses to receive compensation 

for their true losses. 

Jeremy Baybas, 
chairman, infrastructure 
market pond. 

Royal Institution of Chartered 
Surveyors, 

12 Great George Street, 

London SW1P SAD 


Michael, incidentally my con- 
temporary, is 20 steers younger 
than the late Dr Armand Ham- 
mer was when he stepped 
down as chief executive of 
Occidental. 

Roland Shaw, 

Premier Consolidated Oilfields, 
23 Lower Belgraoe Street, 
London SWl 


For this year, the figure has 


Punishment to fit the crime? 

ishment”. Maybe parents are 
right to head for tiie state sec- 
tor! 


adequate funding for basic 
aeronautical research. 


Real disabled issues in danger of being lost in political storm 

people and -their practical, 
day-to-day needs appear to 


Age not a bar on directorships 


10 


FINANCIAL TIMES WEEKEND MAY 14/MAY IS 1994 


COMPANY NEWS: UK 


Lasmo rejects ‘second class’ bid 



TtowHul^MM 

The Lasmo management team: Richard Smernoff (left), finance 
director, with Joe Darby (centre), and Rudolph Agnew 


By Robert Confine and 
Peggy HolDnger 

Casino, the Independent 
exploration and production 
co mpany , yesterday unveiled 
its formal defence against the 
all-paper bid launched 
last mont h by fellow explorer 
Enterprise OH 

Mr Rudolph Agnew, chair- 
man, called chi shareholders to 
reject the bid, describing it as 
“an extraordinarily compli- 
cated and second class offer". 

The all-paper offer is for 27 
Enterprise A shares and 12 
warrants for every 80 Lasmo 
shares. The unusual equity 
structure has been criticised 
by some institutional inves- 
tors, who are believed to be 
keen for a cash offer. 

Mr Agnew yesterday said he 
would "not ask shareholders to 
reject a fully valued bid", 
adding that his only duty was 
to “get every penny he can for 
shareholders” . 

Enterprise Oil is believed to 
be considering a range of 
options for introducing a cash 
element These are thought to 
include a mechanism for share- 
holders to receive cash for the 
warrant portion of the offer. 


By Paid Taylor 

Shares in Portals, the security 
and specialist paper maker, 
jumped yesterday after the 
group revealed it had received 
an approach, "which may or 
may not lead to an offer being 
made for the c ompany ”. 

The shares dosed 99p higher 
at 765p, having traded as high 
as 795p earlier in the day. The 
shares has risen earlier in the 
week amid market rumours of 
a possible bid. 

Yesterday Portals declined to 
elaborate on its announcement 
which, nevertheless, triggered 
speculation about the identity 
of the potential bidder and the 
value of the shares in any bid 
battle. 

Analysts suggested the 
group, which also includes 
environmental protection and 
control products operations, 
could have a break-up value of 


Enterprise is believed to 
have looked at the possibility 
of securing a group of speci- 
alised investors to under- 
write the warrants, which 
would allow it to provide a 
cash sweetener to Lasmo 
shareholders. 

The company has repeatedly 
said it would prefer not to offer 
cash. However, Air Andrew 

S hils tnn. frnanpt' director, said 

yesterday that “there is abso- 
lutely no technical reason 
why... one should not under- 
write the warrants”. 

But he refused to say 
whether Enterprise was seri- 
ously considering such a move. 
“It is not a strategy we are 
considering over and above 
any others,” he sald- 

Mr G raham Heame, chair- 
man and thief executive, said 
Enterprise would retain flexi- 
bility but, “we are committed 
to the offer we have made”. 
Lasmo’s defence document 
emphasised management 
changes within the company 
and highlighted its shift in 
strategic direction which 
should reduce the company's 
vulnerability to low oil prices. 

It dismissed Enterprise’s 
charges that Lasmo did not 


about 800p per share. However, 
they also suggested that a bid- 
der might have to pay 950p to 
£10 to win board hacking for 
an agreed takeover. 

Among companies suggested 
by analysts as possible bidders 
were domestic competitors like 
Aijo Wiggins Appleton and 
customers such as De La Rue, 
the banknote printer, seeking 
to integrate their operations. 

Both Arjo Wiggins and De La 
Rue declined to comment on 
the speculation although Mr 
Les Cullen, De La Rue’s 
finance director, acknowledged 
that Portals was a company 
“we know very well”. 

However, some analysts 
painted out that an acquisition 
by a printer could also have 
serious disadvantages - not 
least because it would almost 
certainly result in the loss 
of Portals' contracts with 
rivals. 


have the financial strength to 
take advantage of all its devel- 
opment opportunities. 

Mr Joe Darby, chief execu- 
tive, said that after completing 
its current £21Sm rights issue 
Lasmo will be able to spend 
£800m on exploration, assess- 
ment and development projects 
over the next three years, as 
well as maintain a £2 00m 
“cushion" to respond to unfore- 
seen developments. 

Enterprise, however, said the 


By Paul Taylor 

Mr David Martin was replaced 
yesterday as chief executive of 
Andrews Sykes less than 24 
hours after Mr Jacques Murray 
and four of his supporters 
won control of the board 
at an extraordinary general 
meeting. 

Mr Murray holds a 29.67 
per cent stake in the spec- 
ialist industrial services 
group. 

Following a board meeting 
yesterday, the company said 
Mr Martin, who was only 
appointed to the post late last 


figures failed to include the 
£450m in debt that Lasmo 
needs to repay over the next 
three years, and charged 
Lasmo was “still on the edge Of 
the financial risk curve; with 
no capacity to take & knock”. 

Mr Heame compared the 
document to “an elaborate sell- 
ing brochure”. He agreed that 
Lasmo's assets were attractive, 
but said a combined company 
would have the financial 
strength to exploit them fully. 


year, win be replaced by Mr 
Eric Hook, one the four 
Murray nominees on the 
board. 

Mr Mar tin will remain on the 

board for the immediate 
future. 

Mr Michael Doherty, a non- 
executive director, also 
resigned from the eight-man 
board yesterday. 

Mr Stuart Ross, finance 
director, and Mr David Crowe, 
another independent director, 
were both voted off the board 
at the meeting. 

Mr David Hubbard remains 

chairman. 


Chelsfield 
and P&O 
in $400m 
disposal 

By Vanessa Houkter, 

Property Correspondent 

The joint venture between 
P&0, the shipping company, 
and Chelsfield, the quoted 
property group, yesterday 
announced the sale of its US 
residential garden apartments 
portfolio for S400m (£274 m). 

Laiog Properties Inc, which 
was acquired in 1990 by P&O 
and Chelsfield, is selling the 
6,500 properties to Security 
I Capital Atlantic, a newly - 
| formed residential property 
, company specialising in the 
south-east of tbe US. 
i Laing Properties is being 
i paid 5280m in cash and tbe 
remainder in shares, making it 
a 25 per cent shareholder in 
j Security Capital Atlantic. Tbe 
remaining 75 per cart will be 
owned by Security Capital 
Realty, a company chaired by 
Mr W illiam Sanders, who is a 
shareholder in Property Trust 
of America, and Security Capi- 
tal Industrial Trust. 

Security Capital Atlantic 
plans to float on the New York 
Stock Exchange as a real 
estate investment trust The 
flotation would be, at the ear- 
liest at the <aid of the year, 
said Mr Elliott Bernerd, Chels- 
field rhafrman. 

The minimum value or Laing 
Properties' holding in Security 
Capital Atlantic has been 
underwritten through put 
options can be exercised 
over the next two years. 

Cash received win be used to 
repay existing bank borrow- 
ings of Laing Properties, 
including 585m currently 
guaranteed by Chelsfield and 
P&O. 

Mr Bernerd said that the 
transaction was consistent 
with ChelsfiekTs stated inten- 
tion is its prospectus last 
December to float its residen- 
tial properties in a real estate 
investment trust Volatile mar- 
ket conditions caused the plan 
to be revised. 

Mr Bernerd said that the 
decision to sell to Security 
Capital Atlantic was “a better 
solution” than the original 
plan because it gave Laing the 
option to convert tbe entire 
portfolio into cadi. 

He said he was also pleased 
with the amount of imme- 
diately raised (tom and the 
pricing iff tbe portfolio, which 
had clawed back the provi- 
sions made following its acqui- 
sition in 199L “In the round 
we are back where we started 
from,” he said. 

Net assets up at 
Value & Income 

The fully-diluted net asset 
value per share at the Value & 
Income Trust stood at IILTp 
at the year ended March 31. 
against lOLlp six mouths ear- 
lier and 92.5p at the previous 
year-end. 

Net revenue for the 12 
months fell slightly, from 
£l.B4m to £1.44m, giving earn- 
ings per share of 3J9p (3S7p). 
A final dividend of 2p makes a 

4p (3.6p) total. 

The directors said they i 
expected to increase the total 
pay-out in the current year to , 

4.2p. i 


Pearson thought to have 
pulled out of library deal 


1 DIVIDENDS ANNOUNCED 



Cwertt 

payment 

Data of 
payment 

Cones - 
POhdng 
dividend 

Total 

tor 

year 

Total 

last 

year 

Appleby Wward§_ 

■ fin 

5.8 

July 4 

55 

9 

9 

Barlo 

,fln 

0.64 

- 

05 

1 

0.5 

Finsbury Trust 


2 

July 21 

2 

3 2. 

3 2. 

Wt Ireland 

.fin 

452 

July 9 

1.44 

152 

1.44 

Johnson Fry Sec — 

. kit 

1.5* 

July 15 

- 

- 

- 

Ntftn Industrial 

. (nt 

9 

July 12 

9 

- 

25 


-fin 

100 

- 

95 

195 

180 

PWS Hofafings 

int 

05 

July 6 

1.5 

- 

4 

Value & Income 

_flr 

2 

JUy B 

1.8 

4 

3-6 

Whessoe . — ...... 

Jnt 

2.3 

July 15 

2J3 

- 

8j> 


Dividends shown pence per share net except where otherwise staled. §USM 
stock. $ Irish pence. * Maiden dividend. 


Slough bids for balance of Bredero 


By Simon Davies 

Slough Estates has launched a bid for the 
remaining 505 per cent of its associate. 
Bredero Properties, the developer which 
was all but sunk by its ambitious Centre 
West project in Hammersmith, London. 

The bid values Bredero at £3.7m, 
reflecting the company's precarious finan- 
cial situation after it breached its banking 
covenants. 

Bredero’s shares fell 4Vip to lOVip on 
news of the lOp a share offer, which is 
recommended by the independent board. 

like recently-collapsed Rosehaugh and 
Speyhawk, Bredero was hit hard by rising 
interest rates and falling property values 
at a time when it was proceeding with a 
highly geared property development pro- 


gramme. The company survived through a 
string of property disposals, and the ring 
fan ring of one of its mainassets, Phase 1 iff 
Centre West. It now has little left 

At its 1993 year-end, Bredero had a nega- 
tive net asset value attributable to its ordi- 
nary shareholders of £3 ,44m, compared 
with an asset value of ElOOm in December 
1989. 

Yesterday, it announced a pre-tax loss of 
£194,000 (£77m) for the year to end-Decem- 
ber after taking in a £906,000 exceptional 
profit from the write-back of previous pro- 
visions. 

Bred era’s only significant remaining 
assets are a 50 per cent stake in a retail 
development in Buchanan Street, Glas- 
gow, and the site for Centre West Phase 3 
in Hammersmith. 


It has no firm income stream, following 
its recent sales of stakes in the Ashley 
Centre and Paisley Centre, which helped 
reduce bank debt from £S3m to 

Slough bought into Bredero in December 
1986, paying £l45m for a 495 per cent 
stake. At the time, it launched a takeover 
offer at 145p a share. Even after a substan- 
tial rights issue, its stake now carries a 
value of only £L8m. 

Slough Estates claims it is taking a 
long-term view of the properties, while 
protecting its investment - which includes 
a £10m prefer en ce shareholding. 

Mr Alan Chisholm. Bredero managing 
director, said the company had been nego- 
tiating alternative offers and refinancing, 
but these bad faTlgn throu gh 


Portals shares jump Chief executive goes 
99p on bid approach at Andrews Sykes 


Unilever disappoints with 
£449m in opening quarter 


By Tony Jackson 

Unilever's shares fell 57p to 
£10.23p yesterday in response 
to first-quarter figures showing 
iraigW trading in both th» US 
and Europe. 

Pre-tax profits of £449m to 
end-March, up 2 per cent from 
last year's £440m, were at the 
low end of expectations. US 
operating profits were halved 
at £l0m. on sales up 7 per 
cent at £l.3bn. giving 
operating margins of just 0.7 
per eppt , 

Unilever said the fall in US 
p ro fi t s was entirely due to tbe 
price war in liquid detergents, 
which began Last summer and 
was already doing damage in 
last year's second half. US 
sales of personal products were 
sharply up on last year, and 
food and chemicals had also 
done welL 


European operating profits 
were 7 per cent higher at 
f 3 pim, on sales up 1 per cent at 
£3.64bn. However, profits were 
helped by undisclosed proceeds 
from Falcon, a Swedish drinks 
business sold in the period. 

Sir Michael Ferry, chairman, 
said trading conditions in 
Europe remained difficult, 
though speciality chemicals 
were “encouraging". 

In the rest of the world, oper- 
ating profits were £!67m 
(£159m). on sales of £1.75bn 
(£l.6bn). Performance had been 
good in south-east Asia and 
Latin America. Sir Michael 
said, but Brazil had been “diffi- 
cult". 

Group turnover was up 4 per 
cent at £&69bn. Group operat- 
ing profit was also up 4 per 
cent at £480m. There was a 
sharp rise in net interest 
charges from £3lm to £55m, 


due partly to the redemption of 
preference shares ami partly fa 
higher interest rates. TUs was 
partly offeet fry a £l3m enep. 
tional profit on property ssks 
in Europe. 

After tax Of £138m (£183®) 
and minorities of £12m (tUa^ 
net profit was up 3 per ceatat 
£299m, calculated at constant 
exchange rates. At currant 
rates profits were fractionally 
lower, os were earnings per 
share at 15.Wp (l&ap). 

During the period. Unilever 
maintained an active pro. 
gramme of 22 acquisitions and 
10 disposals, at a net cost of 
£52Qm. Net debt rose £40Qm ta 
£2. 2bn , with gearing rising to 
30 per cent This was dm to 
the cost of refinancing prefer- 
ence capital as well as to the 
acquisition programme, the 
company said. 

See Lex 


The Telegraph turns in £16m 
but circulation slips below lm 


By Raymond Snoddy 

Sales cf the Daily Telegraph 
last month sunk below the 
symbolic lm mark for the first 
time since the 1930s. 

The official circulation fig- 
ures for April for the daily, 
whose readers have a greater 
propensity to die than those of 
most other national titles, 
mi«M tiie mark by a whisker. 

The average for the month 
was 998.921 copies, although 
this represented a decline of 
only 0.17 per cent in a market 
down by 0.43 per cent 

“The FT did 10 times worse 
than us with a 1.69 per cent 
drop to 29R971,” said Mr Joe 
Cooke, managing director of 
the Telegraph Group. 

For good measure he added 
that The Guardian had 
dropped below 400,000 to 
397,177, although the 30p Times 
put on 1.63 per cent to 478,419. 


The mixed circulation news 
came as the Telegraph 
announced pre-tax profits of 
£16m for the first quarter of 
1994, against £19.1m for the 
comparable period - although 
that figure was boosted by a 
5m profit on the sale of the 
group’s investment in Trinity 

T^tomaHnn.-iI 

Advertising revenue was up 
by about 18 per cent, and the 
company said that the initial 

recovery from recession was 
continuing. Advertising reve- 
nues were approaching levels 
last seen in 1989. 

“The business is as sound as 
a ben.” said Mr Cooke, who 
added that circulation of the 
Daily Telegraph would soon be 
back up above lm again. 

Turnover increased by 10 per 
cent to £68Rm, and operating 
profit at £ 12.1m was up by 
more than 16 per cent 
Earnings per share, exclu- 


ding profit on sale of Invest- 
ments, rose from 5.9p to8.4p. 

For the six months to March 
average sales of the Daily Tele- 
graph fell 1.68 per cent to 
1.016,468, although sales cf the 
Sunday Telegraph Increased by 
more than 6 per cent to 617,505 
in the same period. 

• Further evidence of a recov- 
ery in the newspaper advertis- 
ing market came yesterday 
from Pearson, the media and 
entertainment group which 
owns the Financial 'nines. 

At its annual meeting the 
group reported a “significant 
recovery” In advertising reve- 
nues. 

Lord Blakenham, chairman, 
said the first four months was 
never much of a guide to the 
full year “but advertising reve- 
nue was higher in the first four 
months, led by the Financial 
Times”. 

See Lex 


Speciality Shops flotation 


By Simon Davies 

Speciality Shops has become 
the fourth property company 
to launch a flotation within a 
week. 

The specialist in-town shop- 
ping centre onmpnn y is raising 

£l0.6m from a placing which 
values it at £28.7m. 

Speciality Shops is also issu- 
ing shares to PosTel Proper- 
ties, the property arm of the 
UK’s largest pension fund man- 
ager, in exchange for the 
El 25m purchase of the Jackson 
shopping centre in Bishop’s 
Stortford, Herts. 


The deal will give PosTel a 
28 per cent stake in the com- 
pany. It is in line with tbe pen- 
sion fund’s policy of increasing 
flexibility on properties held 
jointly for the Post Office and 
BT pension schemes. 

This would enable it to sepa- 
rate holdings if the Post Office 
scheme is restructured. 

Speciality Shops was formed 
in 1986 with tbe backing erf a 
number of substantial institu- 
tions. It has focused on invest- 
ing in, and managing, small to 
medium-sized shopping cen- 
tres. 

The company is placing 


9.23m shares at 13 Qp a share, of 
which 480274 are being sold by 
existing institutional share- 
holders. The company will 
have gearing of 63 per cent 
after flotation. 

Its properties have been val- 
ued at £31.3m, or I41.4p a 
share, putting tbe shares at an 
8 per cent discount to assets. 
After the latest acquisition, it 
will own five shopping centres, 
aside from its small trading 
portfolio. 

The issue is sponsored by 
Barclays de Zoete Wedd, and 
trading is expected to comment 
on May 20. 


Trafalgar House in talks over Ritz 


By Michael Skapinker, Leisure 
Industries Correspondent 

Trafalgar House is believed to 
be in discussions which could 
result in Mandarin Oriental, 
the Hong Kong-based hotel 
group, managing the Ritz In 
London. 

Trafalgar House had been 


hoping to sell the Ritz, but 
took it off the market last year 
when it did not receive what it 
considered adequate offers. 

Trafalgar House and Manda- 
rin Oriental have the same 
chairman, Mr Simon Keswick. 
Jardme Matheson, which con- 
trols Mandarin Oriental, is also 
Trafalgar’s largest shareholder. 


Trafalgar House is thought 
to have concluded that in the 
absence iff a buyer for tbe Ritz, 
the hotel would benefit from 
Mandarin Oriental's manage- 
ment and from being part of a 
larger international hold mar- 
keting network. 

Both companies declined to 
comment 


By Raymond Snoddy 

Pearson, the media and 
entertainment group, is 
believed to have pulled out of a 
deal to buy tbe ITC programme 
library - an acquisition that 
would have been worth about 
8175m (£120m). 

Pearson, which also owns 
the Financial Times, was 
favourite to buy the library 
which contains many of the 
programmes made by Lord 
Grade such as The Prisoner 
and films such as On Golden 
Pond. 

ITC. with more than 10,000 
hours of programmes and 
films, is owned by Morgan Pri- 
vate Equity, in turn a subsid- 
iary of HSBC Holdings. 

Tbe apparent failure of the 


deal comes in the same week 
that Pearson announced a 
“global strategic alliance” to 
Jointly launch satellite televi- 
sion channels in Europe and 
other parts of the world. 

Tbe purchase of such a 
library would have fitted in 
well with Pearson’s stated 
strategy of expanding in the 
media and entertainment sec- 
tors and concentrating on the 
acquisition of intellectual prop- 
erty rights. 

The group has already 
acquired a significant pro- 
gramme library through the 
purchase of Thames Televi- 
sion, now the largest indepen- 
dent production company in 
the UK. No-one at Pearson 
could be contacted last night to 
comment on tbe ITC deal. 


Pitteucrieff offers 
farewell £1.2m pay-out 


By Peggy HoiBnger 

PiUencrieff, the natural 
resources and communications 
company, is offering share- 
holders a farewell £iJ2m pay- 
out, as the delayed demerger of 
the two divisions got under 
way again yesterday. 

Shareholders will receive a 
4p second interim dividend 
before the demerger takes 
effect at the end of June. 

Mr Terry Heneaghan, Pitten- 
crieff chief executive, said the 
company had been unable to 
pay a final due to the demer- 
ger. 

“We thought shareholders 
deserved the dividend and we 
had the resources to pay it” he 
said. 

Pittencrieff also announced 


that it bad scrapped plans to 
list tbe co m mmiiflattnna com- 
pany in the UK through an 
introduction. 

Mr Heneaghan said tbe com- 
plications of meeting the 
requirements of the US and 
UK regulatory bodies would 
have meant a further delay of 
up to four weeks. Pittencrieff 
Communications Inc will now 
be listed solely on Nasdaq. 

Pittencrieff shareholders are 
being offered one share in a 
new company, Pittencrieff 
Resources, for every share in 
the original group. They will 
also receive five PCI shares for 
every 24 of the original com- 
pany. 

Pittencrieff Resources has 
applied for a listing on the 
London Stock Exchang e 


NEWS DIGEST 


Whessoc 
shares fall 
on setback 

Shares in Whessoe fell 35p to 
184p yesterday as the instru- 
mentation and control and pip- 
ing systems group reported 
halved interim profits and the 
disposal of its project engineer' 
tog division. 

After a Elm exceptional 
charge for redundancies and 
interest costs of £705,000 
(£277,000 income), pre-tax prof- 
its for the half year to end- 
March fell to £U8m (£4. 02m). 

Turnover, however, 
increased by 56 per cent from 
£40.8m to £63.8m, of which 
£6 -74m (£&22m) came from dis- 
continued operations. 

Earnings per share emerged 
at 4.4p (lL6p) but the interim 
dividend is maintained at 23p_ 

Whessoe Projects, tbe project 
engineering arm. has been sold 
to Noell, a German engineering 
company owned by Preossag, 
for £1.4m cash. Proceeds will 
be used to reduce borrowings. 

Appleby Westward 

Appleby Westward, the USM- 
traded grocery distributor, saw 
profits before tax drop from 
£L28m to just £221,000 over the 
12 months to February 28. 

The outcome took in same 
£205.000 of non-recurring costs 
and £371,000 in sub-contract 
commissions associated with 
the agreement last year with 
Watson & Philip. 

Mr Roger Harvey, chairman, 
described conditions in tbe 
food industry as “difficult an d 


more competitive than ever 
with the change in Sunday 
trading removing some of the 
advantage our retailers bad”. 

Group turnover edged ahead 
to £71.7m over the year; direc- 
tors said that sales in tbe cur- 
rent year, excluding the com- 
mercial vehicle repair division 
which was sold after the year- 
end, were showing a 21 per 
cent advance. 

Earnings per share dropped 
to 2.7p (I5.7p). The recom- 
mended final of 5Rp keeps the 
year's total at 9p. 

Chelsea 

Mr Ken Bates, the ebullient 
chairman of Chelsea, is not let- 
ting today's FA Cup Final 
against Manchester United 
impede his reputation for liti- 
gation. 

Two companies under his 
control,. Chelsea Village and 
Chelsea Football Club, have 
issued proceedings in the High 
Court seeking a declaration 
that tbe recent appointment of 
Mr Christopher Morris of 
Touche Ross as liquidator to 
CFAC, the former Chelsea 
Football and Athletic Com- 
pany, was invalidly made. 

The statement said that 90 
per cent of CFACs debts had 
already been paid off and the 
remaining non-Chelsea debts 
were never acknowledged as 
valid. Chelsea is seeking to 
appoint a liquidator “who will 
finalise the affairs of CFAC in 
the most cost-effective manner 
and in the best interests Of all 
the remaining creditors”. 

Personal Assets 

Net asset value per share of 
Personal Assets Trust rose 


from £75.18 to £85.34 over the 
12 months to April 30, an 
improvement of 13-5 per cent 

Available revenue for the 
perio d amounted to £322,000 
(£378^)00), equal to earnings of 
212p (252p). A final dividend of 
lOOp makes a 195p (L80p) total 
For the years 1994-95 and 
1995-96. the board Intends to 
declare dividends totalling 

200p. 

Borland Inti 

Borland International, the US 
personal computer company, 
yesterday said the announce- 
ment of Its year-end result 
would occur later than expec- 
ted because of complexities 
associated with the sale of its 
Quattro Pro product line, the 
acquisition of Reports mi th, 
and the restructuring of its US 
and international operations. 

Barlo 

Barlo Group, tbe Dublin-based 
radiator and packaging com- 
pany, announced doubled 
annual profits as it continued 
to draw benefit from acquisi- 
tion and rationalisation. 

On turnover ahead from 
I£49.7m to I£97.3m (£95. 4m), 
including I£l9fim from acquisi- 
tions, pre-tax profits for tbe 
year to end-March emerged at 
l£7.78m (I£3.9m). Directors 
attributed tbe profits growth to 
expansion of the radiator activ- 
ities, bolstered by tbe restruct- 
uring of IRG and a maiden 
nine-month contribution from 
Belgium-based Veha, acquired 
in July 1993. 

Net borrowings at the year 
end amounted to I£4.87m 
(I£6.34m) representing gearing 
of 11 per cent 


Earnings per share improved 
to 5.11p (3.65p); a final dividend 
of 0.6p doubles the year’s total 
to lp. 

Finsbury Trust 

Finsbury Trust, the special sit- 
uations investment trust, lifted 
net assets by 41 per cent to 
18Llp over the 12 months to 
March 31. 

Investment income for the 
year slipped to £L38m (£L52m). 
After-tax revenue dropped 
from £872,000 to £854,000 giving 
earnings per share of 3.5p 
(3.6p). The final dividend Is an 
unchanged 2p for a same-again 
3.2p total. 

Fleming Chinese 

The Fleming Chinese Invest- 
ment Trust had a net asset 
value per share of 92 .2p at 
March 31. compared with an 
initial value of 97.2p when the 
shares commenced trading on 
October 19. 

For the period from Septem- 
ber 10, the date of incorpora- 
tion, to March 31. net revenue 
totalled £93,541, giving earn- 
ings of 0.l6p per share. Total 
assets amounted to £55.6m. 

PWS 

PWS Holdings, the Lloyd's 
insurance and reinsurance bro- 
ker. reported a pre-tax deficit 
of £446,000 for the six months 
to end-March, compared with a 
profit of £247m last time. 

The outcome, which was 
struck after providing some 
£lm for discontinued activities 
and reorganisation, came from 
turnover down from £fl.39m to 

£7.03 m. 

Losses per share came out at 


0.5p (6.4p earnings), and the 
interim dividend is cut from 
L5p to 0-5p. 

The shares closed Up lower 
at 62p. 

Lord Pearson, chairman, said 
there were clear signs that 
capacity was returning to tire 
market and. with profit growth 
now weighted increasingly 
towards the second half, he 
expected a healthy second six 
months, 

Westminster Health 

Westminster Health Care, the 
nursing homes group, has 
acquired five nursing homes in 
Sco tland and Northern I reland 
from Medflife for £9.45m cash. 

The purpose-built homes 
contain 315 beds - of which 42 
are for elderly mentally infirm 
patients, taking the group’s 
total number of beds to 4,151 in 
60 homes. The purchase gives 
tbe group 14 homes in Scotland 
and extends its business to 
Northern Ireland for the first 
time. 

City of Oxford 

The City of Oxford Investment 
Trust reported a net asset 
value of 38 .2p per ordinary 
share as at March 31, up from 
32.7p a year earlier. 

Net revenue, taking in a 
charge of £101.000 related to 
the extension of the trust’s life, 
was £i.5lm (£l.53m), leaving 
earnings at 5.04p (5. lip) per 
share. A proposed final divi- 
dend of 1.4p maintains the 
year’s total at 5p. 

AUied-Lyons 

Hiram Walker, the spirits and 
wine division of Allied-Lyons, 


has acquired a significant 
interest in the Swiss distribu- 
tion activity of Bols-Cynar, a 
subsidiary of Bols Wessanen. 
the Dutch food and beverages 
group. 

The joint venture will be 
operative from July 1. 

Bols-Cynar has been 
distributing Ballantme’s, tbe 
leading whisky in Switzerland 
for over 60 years, and its name 
will be changed to Bols-Cynar 
BaDan tine’s in recognition of j 
the new venture. 

M Grenfell Equity 

Net asset value per share of 
Morgan Grenfell Equity 
Income Trust stood at 146p 
undiluted at March 31. That 
compared with 139.7p at the 
September 30 year-end and 
with U9.1p at end-March 1393. 

Tbe fully diluted figures were 
i3S.6p, 133.1P and 122Bp respec- 
tively. 

Available revenue for the six 
months to March 31 amounted 
to £597,000 (£541,000). With 
more shares in issue, earnings 
slipped to L74p (2J22p). 

The interim dividend is a 
same-again 2p. 

Overseas Inv 

Overseas Investment Trust 
raised fully diluted net assets 
per share to 416.2p at March 31, > 

against 344p a year earlier and 
390Rp at September 3Q 1993. 

The undiluted figures were 
426JP. 350.Sp and 39G.3P respec- 
tively. 4 

After-tax earnings dropped 
from £452,000 to £296,000 for 
the half year giving earning 3 
per share of Q.78p (L19P)- 

The interim dividend » 
maintained at Q,85p. 





a Pj>Oi nt .N 


financial times weekend may i 4 /may 15 1994 


‘," r " s 'n ii, 
sl, l»' befaJ 


* flotarioi 


INTERNATIONAL COMPANIES AND FINANCE 


Euro Disney hopes to seal 
debt shake-up next week 


By ABco Rawtfhom in Paris 
Boro Disney, the troubled 

leisure group, hopes nest week 

to call an extraordinary gen- 
eral meeting of its sharehold- 
ers to approve the terms of its 
FFrl3bn ($2 ,21m) emergency 
financial restructuring pack- 
age. 

The meeting, which is expec- 
ted to be held in a 
month’s time, will mark the 
start of the final stage of com- 
pleting the complex rescue 
deal. Euro Disney’s sharehold- 
ers will be asked to endorse 
proposals to stage a FFrfibn 
rights Issue, which farms the 
core of the restructuring pack- 
age. 

If all goes well the details of 
the rights issue will be 
announced a few dayB after the 
meeting. 

The issue is scheduled for 
completion in mid-July, 


enabling Euro Disney to ccan- 
plete its restructuring before 
the French summer holiday in 
August 

Walt Disney, the US enter- 
tainment company that owns 
49 per cent of Euro Disney, has 
promised to take up its full 
entitlement of the rights issue. 
A number cf the banks in Euro 
Disney's 6X-5tnmg loan syndi- 
cates have agreed to under- 
write the remaining: 51 per cent 
of the shares. 

Euro Disney last week took 
the tactical step of CTtpnrifrig 
to shareholders an offer of war- 
rants to buy shares at FFr40.00 
for 10 years. The offer was ini- 
tially available only to Walt 
Disney and the banks. The 
extension was interpreted by 
analysts as an attempt to pla- 
cate the ordinary shareholders. 

However, the group 
announced it was reducing the 
par value of its shares to 


FFr5.00 from FST10.00. This 
sparked speculation that the 
rights issue would be deeply 
discounted, raising the risk 
that ordinary shareholders 
(many of whom have incurred 
heavy losses on their Enro Dis- 
ney shares) would face heavy 
dflution because of the issue. 

Enro Disney, which is 
advised by SG Warburg in 
London, had hoped to hold the 
EGM at an earlier date and to 
complete the rights issue by 
the end of June. However, per- 
suading all its banks to agree 
to the restructuring took lon- 
ger than expected. 

Basque Rationale de Paris 
(BNP) and Banque Indosuez, 
joint leaders of the syndicates, 
have for months been in nego- 
tiations with to** other lenders. 
Some Of the smaller h aw Ira 
have taken an unexpectedly 
tough stance causing a delay 
in the completion of the deaL 


Oppenheimer leads Russia team 


By Kenneth Gooding, 

Mining Correspondent 

Hr Nicholas Oppenheimer, 
deputy chairman of De Beers, 
will head a team to meet Rus- 
sian nffleiaia in Moscow next 
week. It comes as the South 
African group’s $5bn diamond 
marketing contract with. Rus- 
sia appears to be under strain. 

Among the Russian negotia- 
tors will be Ur Yevgeny 
Bychkov, head of Komdragmet, 
the Russian tifamnnri and pre- 
cious stones who is 

demanding that Russia keep 25 
per cent of its rough diamond 
trade rather than the 5 per 


cent agreed under the terms of 
the contract with De Beers. 

Mr Leonid Gurevich, deputy 
rhtrirmsm erf K om drag met, told 
Diamantaire. a subscription- 
only newsletter published by 
the C RTT Tntomaftnmn? consul- 
tancy group, that Mr Viktor 
Chernomyrdin, the Russian 
prime minister, m fl o d sed 
a government committee to 
meet Mr Oppenheimer, making 
this the highest level of nfuriai 
negotiations for De Beers in 
Russia since it conducted its 
five-year contract In 1S9Q. 

De Beers controls at least 90 
per cent of world trade tn 
rough (uncut) rfrawmndff arid 


Russia supplies about 25 per 
fynt of the diamonds De Beers 
sells. Mr Mark Cockle, editor of 
Diamantaire, said the sudden 
ifprfsinm of Mr Oppenheimer to 
leave for Moscow “underlines 
the predicament facing De 
Beers over what strategy to 
adopt with Russia”. He said 
Komdragmet officials had 
shown a preference for dealing 
directly with members of the 
Oppenheimer family rather 
fhan with Mr Gary uaifo, man- 
aging director of De Beers cen- 
tral selling organisation. 

Mr Ralfe recently criticised 
Ru ssi a for aflUfrig diamimdc in 
breach of the contract 


Alum ax to build $75m parts plant 


By Kenneth Goodbig 

Alum ax, the third-largest US 
aluminium producer, is to 
build a $75m plant on an 82- 
acre rite at Jackson, Tennes- 
see, to produce car parts using 
ite proprietary semi-soM metal 
forming, or SSF, -technology. 

The move underifaeM the alu- 
minium industry's belief that 
it expects increased demand 
from fcbe. witomotive J&xdustry. 

SSF is' claimed to be the first 


new metal forming process for 
decades. The Alumax technol- 
ogy, covered by more than 60 
patents, involves specially-pro- 
cessed al uminium billets 
forged into higteqoality compo- 
nents with one stroke. Alumax 
says tiie components have vir- 
tually all the riaftrti of the fin- 
ished part ' and need Utile, if 
. any, further processing. 

Chrysler and Ford in the US 
^baVe .been . testing- engine and 
- air Con^itibnihg components 


made by the process far two 
years. 

Mr Alan Bom, Alnnnir chair - 
man, said the new plant, to be 
completed in two years would 
eventually employ 500 people. 

Mr Bond Evans, president, 
mid at Alumax’s annual meet- 
ing that the aluminium indus- 
try had seen the bottom of the 
economic cycle and the worst 
of the problems associated 
with the break-up of the Soviet . 
Union. 


Sprint stock 
rises on 
talk of 
EDS link 


By Martin Dickson 
in New York 

Shares in Sprint, the US 
telecommunications group, 
rose yesterday amid reports 
that it had been in discussions 
with Electronic Data Systems, 
a subsidiary of General 
Motors, about an alliance to 
compete in the multimedia 

inf flriyntfinn liH|ufclry. 

The companies declined to 
comment but Wall Street ana- 
lysts said such a deal could 
have advantages for both com- 
panies and send competitive 
ripples through the US tele- 
connnmncatiom sector. 

Sprint share rose $% in 
morning trading to $36%, 
while General Motors B shares 
- which represent a call on 
SOS's dividend stream - rose 
! $% to $33 %. 

Sprint is the third largest 
long-distance US teteconmnmi- 
cations group with large 
operations in cellular tele- 
phony and local telephone ser- 
vices. it is the only large 
North American conummica- 
tions company which has 
interests in all three areas, 
though other groups are tend- 
ing in this direction as regula- 
tory comm ercial pressures 

allow than. 

EDS is the world’s leading 
computing services company 
and operates its own global, 
digital communications net- 
work on behalf of corpor ate 

fHwifaL 

EDS is known to have held 
talks on possible alliances 
with many erf the world’s lead- 
ing telephone companies - 
including British Telecom - 
over fee part few years. 

Analysts said that Sprint, 
with its well-known brand 

mm, him! fast -growing cellu- 
lar service, could give EDS a 
central role in US h i m i l mprffa 
services. 

Speculation about the future 
of EDS has risen sharply over 
the past few days following an 
agreement over pension plan 
contributions between GM and 
a government regulatory 
agency. The agreement freed 
EDS from liability for GM pen- 
sion co ntri b uti ons if EDS left 
the group, giving GM the free- 
dom to sell all of the unit or a 
stake in it. ■ 


Rescue plan lifts Metallgesellschaft 


By David Waller In Frankfurt 

Metallgesellschaft shares 
jumped nearly -15 per cent 
yesterday after the German 
metals, mining and industrial 
conglomerate which came to 
the' verge of bankruptcy last 
January, published details of 
its planned re structuri ng pro- 
gramme in its employees' 
newspaper. 

The detailed account of the 
cost-cutting measures plann ed 
by Mr Kajo Neukircben, chief 
executive, coincided with a 
strong buy-note from a Lon- 
don-based securities house rec- 
ommending that investors pur- 
chase Metallgesellschaft 
shares. 

The shares rose DM36 to 
DM280 yesterday, following a 
DM17 rise on Wednesday, with 
the result that the shares have 
risen by 25 per cent this week 

MetaDgcseDachaS said in its 


internal newspaper it was aim- 
ing to increase Eqnkfity and 
implement cost-savings total- 
ling DM4hn (£L3bn). 

The planned reduction of the 
workforce by 7,500 people from 
43,000 at the end of last year 
would reduce personnel costs 
by DM550m, Metallgesellschaft 
said. 

A reduction of inventory lev- 
els would save a further 
DM500m. Metallgesellschaft 
mrid it planned to save addi- 
tional, large amounts of cash 
by reducing investment levels 
and cutting borrowings. 

Analysts said these figures 
were in line with their esti- 
mates and suggested the main 
impetus for the share price 
movement came from the buy- 
note released by UBS earlier 
this week, to this. Mr Peter 
Dupont argued that Metallge- 
sellschaft’s shares — hitherto 
avoided by international inves- 


tors to Die light of the scale of 
the group’s problems - were 
oversold. 

Drawing parallels with the 
share price performance of 
other near-bankrupt German 
companies when entering a 
recovery phase, the UBS ana- 
lyst argued that in the case of 
Metallgesellschaft “a major 
recovery story is about to 
unfold based on aggressive 
cost-cutting, a strengthening 
industrial economy and firmer 
metal and ofl prices”. 

Metallgeseltechaft came to 
the brink of collapse after a US 
subsidiary ran up DM2.3bn 
losses trading in oil deriva- 
tives. it survived after banks 
provided a DMs.4bn rescue 
package. At current share 
prices, the group has a market 
capitalisation of about DM4bn. 

Analysts at other institu- 
tions cautioned yesterday that 
Metallgesellschaft’s shares 


ITD in $1.6bn Bangkok float 


By Victor MaOet In Bangkok 

Italian Thai Development 
(FID), Thailand’s biggest con- 
struction and dvil engineering 
company, is to be floated on 
the stoc k orahang p in Rangfcnk 

later this year in a deal which 
could value the company at 
$1.6bn, brokers and FID execu- 
tives say. 

The constr u ction company, 
which rinmfwatws the Thai mar- 
ket for large in f ras tru cture 
projects. Is part of the FID 
group founded in 1958 by the 
late Mr Giorgio Berlingieri and 
Mr Hhaijiirth X^maaita. The 
group is controlled by the Ear- 

nagiifa family 

They are planning to sell 10 
per cent of the construction 


company, or 2Sm shares, in the 
initial public offering in the 
next couple of months, to raise 
about BMhn ($157m), although 
the exact price of the shares 
has yet to be finalised. Jardfoe 
Fleming Thanakom and Gold- 
man 8arh« are co-lead manag- 
ers, and 30 per cent erf the issue 
will be set aside for foreign 
investors. 

Company executives say the 
listing gives ITD the chance to 
raise capital more cheaply 
than by bank borrowing. 

Tn the old days the govern- 
ment was our main customer, 
but that's slowly changing,” 
sai d Mr William Zentgraf, man- 
aging director of Italthai Hold- 
ing. “More and more of the 
work is coming in private con- 


cessions ar>d to do these you 
need capital.” 

He noted that Sino-Thai 
Engineering and Construction, 
one of FID'S listed competitors, 
had recently raised $8Qm for 10 
years at 1.75 per cent through a 
Euroconvertible debenture - a 
for cheaper way of borrowing 
money than anything available 
to an unlisted company. “As 
soon as you're on the stock 
exchange, all of these other 
doors (men up for you,” said 
Mr Zentgrat 

Among other projects, the 
company is installing new pro- 
vincial telephone lines as part 
of a lm line concession won by 
Thai Telephone and Telecom- 
munication, and it has a 14 per 
cent stake in TT&T. 


Austrian privatisation terms set 


By Pa tri ck Blum in Vienna 

The flotation next week of 51 
per cent of VA-Techanologie, 
Austria’s largest engineering 
group, is expected to raise 
Sch6.9bn ($585m), almost 
Sch2bn more than a ptfripetgri 
when the c ompan y's privatisa- 
tion was announced last 
November. 

Following strong interest 
from international institu- 
tional investors in Europe and 
the US, the 7.65m shares an 


offer have been priced at 
Sch900 per share - at the 
upper of initial valuations. 
This would value the company 
at Schl3.5bn. “Demand ban 
been consistently strong across, 
all markets,” too company 
said. 

VA-Tech’s privatisation - 
the largest Austrian flotation - 
is part of a gove riimpnt pro- 
gramme to cut the state's role 
in industry which it hopes will 
raise about Sch20bn over the 

Tluxt Tftrinthll. 


The company is owned 75 
per cent by OIAG, the Austrian 
state holding raimpmy for the 
nationalised industries, and it 
hag a 25 per cross share- 
holding with VA-Stahl, the 
steel group which 1 b being 
restructured to prepare it far 
privatisation by 1996. 

The flotation on the Vienna 
stock exchange is set to start 
on Monday and run all of next 
week, but it is expected to 
close early due to high 
demand. - 


Index ft sha* price (ab***9 

110. air- 2 


IkMafeaMfachaft 


so — V— IP- 


Nov 03 

'SewGKFTOrapHto 


«m Mar 


remained a hi ghly speculative 
investment, in spite of toe 
surge in price this week. The 
group lost DMlj88bn last year 
and is likely to lose a further 
DMlJMbn in the current finan- 
cial year to the end of Septem- 
ber. 

ESS postpones 
share listing 
in New York 

By HSary Barnes 
In Copenhagen 

International Service Systems, 
the industrial cleaning group, 
yesterday blamed difficult con- 
ditions to the US equities mar- 
ket for the postponement of a 
planned share issue to the US 
and a listing to New York 

The group said that an issue 
at the present Hme could not 
be carried out at a price level 
satisfactory to ISS. The Danish 
group last year acquired 
National Cleaning Company, a 
US group with 20,000 employ- 
ees and an annual turnover of 
about $500zn, which means that 
40 per emit of CSS's turnover 
takes place to North America. 

The acquisition cost ISS 
DKr585m ($87.3m) and was 
financed by bank loans with 
possible equity financing An 
issue of 3m shares was planned 
to the US, and toe group bad 
hoped to raise about DKr620m 
with the issue priced at about 
PifHBs per share. 

ISS B shares fell by DKi8 to 
DKr23l to Copenhagen yester- 
day. lSS*s turnover in 1993 was 
about DKrl3-30bn. National 
Cleaning Company was 
included for the final seven 
months of the year. Net profits 
increased to DEr46lm from 
DKr265m. 


Ikv hut Hi!? 




Commercial union 

RESULTS - 3 MONTHS 1994 


Pre-tax profit £64m 


★ Operating profit before taxation increased by £48m to £64m. 

★ Improved general insurance result, particularly in the 
United Kingdom. North American results were affected 
by severe weather claims. 

★ Life profits increased by 10% to £32m. 

★ Shareholders' funds £2,253m (31 December 1993 £2,529m). 


HIGHLIGHTS 


Total premium income 
Operating profit before taxation 
Operating profit after taxation 
Profit attributable to shareholders (note 1) 
Operating profit per share (note 2) 


3 months 
1994 
Unaudited 
£1,6 17m 
£64m 
£44m 
£56m 
72p 


3 months 
1993 
Unaudited 

£1 ,609m 
£16m 

£9m 

£36m 

0.9p 




Commercial Union pic, St Helen's, 1 Undershaft London EC3P 3DQ 



Unilever 


First Quarter Results 1994 


At constant rates of exchange, sales increased by 
4% over the corresponding quarter of last year. 
Operating profit grew by the same amount but 
higher interest costs limited the increase in net 
profit to 2%. 

RESULTS 



1994 

1993 



fm unaudited 

Increase 

Turnover 

6,689 

6,437 

4% 

Operating profit 

480 

461 

4% 

Profit before 




taxation 

449 

440 

2% 

Taxation 

(138) 

(133) 


Minority interests 

(12) 

(14) 


Net profit 

299 

293 

2% 

Ar cacti quarter's areroge exchange me* 



Net profit 

294 

295 

-% 

Combined earnings 

i e *r a - 


nf 

per share 

15.74p 

15-80 p 


per 5p of ordinary opted 





t 


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place « the IDS Qaon Seminar. 


In Europe, trading conditions remained 
difficult with only a modest increase in sales. ■ 
Results in speciality chemicals were encouraging 
and operating profit also benefited from the 
sale of a non-core business. 

In North America, sales volumes increased 
markedly in personal products and were further 
assisted by the ice cream acquisitions made last 
year. Conversely, lower prices reflecting intense 
competition to fabric detergents led to an overall 
fall to operating profit 

Outside Europe and North America, sales and 
profits growth was firm, with good performances 
in South East Asia and Latin America, but to 
Brazil a difficult operating environment impacted 
on the results. 

At the exchange rates prevailing in each period 
net profit was unchanged in sterling, but increased 
by 5% in guilders and 1% in dollars compared with 
the corresponding quarter of last year. 

The results for the second quarter of 1994 will 
be announced on Friday 12 August 1994. This 
announcement will include interim balance sheet 
information. 

For copies of Unilever results statements 
telephone Freephone 0800 181 891 or write to: 
Unilever Corporate Relations, PO Box 68; 
Unilever House, London EC4P 4BQ, or P.O. Box 
760, 3000 DR Rotterdam. 



ECUlWalnvMtPLC 
anniimfaw 
Mgnvfa 
London tWiX ML 

rat 47i swoon 

rtc +71335 


.-L'T'JRIS OPT 'ON 5 3 RG V .EH;S 


$32 












12 


MAV 14/MAY 1$ 1994 




WEEK >N THE MARKETS 

Copper and 
coffee stir 
up a froth 


froth and frenzy returned to 
the commodity markets yester- 
day as US investment funds 
piled in with more buying 
orders. Their efforts helped 
boost copper’s price on the 
London Metal Brahangp to its 
highest level for 14 months, 
nickel was at a 15-month, peak 
and aluminium reached a 22- 
month high. At the same t ime , 
coffee prices soared to a fresh 
five-year peak. 

The rush in the metal mar- 
kets started after the LME 
reported its copper stocks had 
dropped, by 21,700 tonnes to 
424,700 tonnes, the lowest for a 
year and 31 per cent below the 
16-year peak in February. 

Copper for delivery in three 
months Jumped another 86050 
a tonne by the dose yesterday 
to $2,179 to end the week 
$15150 ahead. The red metal 
also moved Into backwarda- 
tion, when a premium is 
charged for immediate deliv- 
ery. On the New York Com- 
modity Exchange by midday 
copper bad burst through the 
psydiologicaUy-important $1 a 
lb ($2^04 a tonne) level to $1.40. 
Mr Viktor BielsM, analyst at 
Bain & Co. part of the Deut- 
sche Bank Group, suggested 
the copper price rise was to 
some extent supported by mar- 
ket f undamentals . Demand was 
high in the US, recovering in 
Europe and doing well in Asia. 
LME stocks were probably 
down to a level where all free- 
ly-avaflable metal had gone. 

In recent years, banks and 
other finan cial institutions 
have made a modest profit by 
buying LME stock and negotia- 
ting with warehouses special, 
low, rents for storing it for up 
to three years. Mr Bielski 
suggested a great deal of. the 
re maining copper in LME 
warehouses was tied up by this 
type of deal He also suggested 
that copper might go to $LQ5 a 
lb ($2£L4 a tonne) in the pres- 
ent rally but “$1.10 would 
unlock the metal held under 
financing agreements.” 


(Aa M Thureda/s dose) 


AlomMun 
AtomMum iBoy 
Ooppar 
[ 

Metal 

Zinc 

Tai 


‘•‘19,000 to 26*8657 
-060 to 36JJ40 
-21.700 KJ 424,700 
■40)0 to 343.722 
4420 to 1324)16 
+£357 « 1,157632 

*35 la 27,906 


WEEKLY PRICE CHANGES 



Latest 

Chang* 

Year 

1994 


prioaa 

an week 

ago 


Low 

Gold per troy or. 

$38035 

+5-05 

$387,80 

$39850 

$3C(L50 

SOver per troy oz 

381 kOp 

+13.00 

2Sa5Qp 

384 ^0p 

335J50p 

AtenUtsn 9£7H (cash) 

51325-5 

+1B.0 

$11245 

$132550 

$1107^0 

Copper Grade A (cash) 

52189.0 

+1BEL5 

$1145.0 

$2189.00 

$173150 

Lead (cash) 

$482.0 

+iao 

S2B5A 

$51050 

$426.0 

Nickel (cash) 

$6290X1 

+582-5 

$58875 

$8290 

SS210.0 

3nc SHG (cash) 

5957.0 

- 

$8358 

$1014 

$9005 

Dn (cash) 

ISSSOPO 

+57^ 

$5485,0 

$5850.0 

$47aao 

Cocoa Futures Jui 

£967 

+28 

£877 

£969 

£859 

Coffee Furnas JU 

$1957 

+187 

S888 

$1957 

siira 

Sugar (LDP Raw) 

S282.40 

+11.7 

53138 

$296.2 

5252.9 

Borigy Futuna Stop 

E&7M 

+a 30 

emus 

£97.40 

£9t£BS 

Wheel Futures Jim 

El 13.05 

-AM 

£1423 

£117/50 

£97.80 

Cotton Outlook A Index 

85.70c 

-035 

saesc 

88JJ5C 

82.46c 

Wool (64a Super) 

422p 

+20 

373p 

422p 

342p 

OB (Grant Blond) 

S1&365X 

- 

518.48 

$1£3B5 

$13.16 

Vrnm union oVanrisa (tataeL p PeonAg. 0 Certs ax x Jifly 


WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONDS 

Bad Coy's Weak Month 

Coupon Date Price change Yield ago bqo 

Australia 94S00 06/03 10£2100 *0.450 aB2 8.78 &20 


Gonnany 

iwy 

Japan 


Austrafla 94500 08/03 

Belgium 7.250 04/04 

Canada- £500 06/04 

Denmark 7.000 12/04 

Franca BTAN 8.000 05/98 

OAT 5600 04AM 

Germany 6750 05AM 

Italy 8.500 01/04 

Japan No 119 4600 06/99 

No 157 44SQ0 06/03 

NeUwrtanda 5.750 01/04 

Spain 1*500 10/03 

UKGMs 6000 06/99 

6750 11AM 
9.000 10AM 
US Treasury ■ 5.875 02AM 

6250 OB/23 

ECU (French Govt) 6000 CMAM 

London dosing. "Now Yorfc mtd-day 
t Okm pidudng nBMwl * < tax «t 126 par 
mew US, UK it aaite. other* h retard 


Netherlands 
Spain 
UK G«s 


866000 

97.0700 

1061250 

88.9600 

1067700 

960000 

107.1170 

10441796 

866200 

10&3500 

93-02 

91-01 

107-03 

89-30 

85-04 

967500 


cam payaUa by i 


682 678 620 

- 7.60 7.18 

6S1 668 610 

762 7.46 699 

621 632 684 

693 7.11 681 

684 680 628 

9.1 3t 613 674 

3.18 VST 647 
385 684 695 

608 679 648 

65B 687 694 

7.83 785 7.11 

603 625 7.50 

615 634 788 

724 722 686 

721 7.63 729 

724 727 684 

YMdK tecta market sanded. 


Source: IMS Maradona/ 


ECONOMIC DIARY - FORWARD EVENTS 


TODAY: National Savings 
results (April). 

TOMORROW: UNISON union 
conference in Bournemouth. 
MONDAY: Producer price 
index numbers (April). Analy- 
sis of bank lending to UK resi- 
dents (first quarter). US indus- 
trial production (April); 
capacity utilisation (April). 
European Union general affairs 
council meets in Brussels 
(until Tuesday). South Africa’s 
new Senate due to meet. 
Advertising Association holds 
annual luncheon at Savoy 
HoteL 

TUESDAY: CBI survey of dis- 
tributive trades (April). New 
construction orders (March). 
Acquisitions and mergers 
within the UK (first quarter). 
US housing starts (April); 
building permits (April). Mr 
Kenneth Clarke, chancellor of 
the exchequer, addresses CBI 
annual dinner at Grosvenor 
House HoteL Informal meeting 
of the European Union’s agri- 
culture council in Greece. 
European Union’s consumer 
council meets in Brussels. 
Malawi’s first multi-party gen- 
eral election. Financial Times 
holds conference “World Pulp 


and Paper" in London. Build- 
ing Societies Association 1994 
conference in Birmingham 
(until Thursday). Interims 
from BOC Group and Hanson. 
Preliminary figures from 
Allied-Lyons. 

WEDNESDAY: Retail prices 
index (April). Labour market 
statistics; unemployment and 
unfilled vacancies (April-provi- 
sional); average earnings indi- 
ces (March-provisional); 
employment, hours, productiv- 
ity and unit wage costs; indus- 
trial disputes; includes 
long-term unemployment 
(quarterly analysis of unem- 
ployment by age and duration} 
(March). Public sector borrow- 
ing req uirement (April). 
THURSDAY: Machine tools 
(March). Retail sales (April). 
Financial Statistics (May). Pro- 
visional figures for vehicle pro- 
duction (April}. 

FRIDAY: Provisional estimates 
of M4 and counterparts (April). 
Building societies monthly fig- 
ures (April). Major British 
banking groups' monthly state- 
ment (end-Aprll). Mr F.W. de 
Klerk, former South African 
president, delivers Nobel peace 
lecture in London. 


LOW COST 

SHARE DEALING SERVICE ^.*’944 0111 

i-uc*M €10 MIMM I m [u ' I.I ,k, :v. : 

€90 iL wiMVM os' av. nnut. i 


2?K or Fl i tures prices from £49 per mon 
For v second updates cm your Windows PC Screei 
socket Financial Monitor call 0494 444415 

QuoteUnk from SPRINTEL 


3 —* 


financial times weekend^ 


COMMODITIES AND BOND PRICES 


The investment funds* com- 
puter-driven operations also 
put nickel in their sites yester- 
day, Kfindhig the price through 
various chart resistance points 
and driving the lmr three- 
month price up by I4XL50 a 
tonne to 56^6750, up $590 a 
tonne or nearly 10 per cent 
over the week. 

The funds also brought alu- 
minium to the party for the 
first time In this rally. Three- 
month aluminium closed at 
$1+353 a tonne, up J24J50. Alu- 
minium was ahead only by 
$20.50 a tonne over the week. 

The sky appeared to be the 
limit for the coffee market this 
week. The London market has 


BASE METALS 


LONDON METAL EXCHANGE 

(Prices from A m afeamated Metal Taring 
M ALUNMOJU, 867 PURITY (3 per tonne) 


Precious Metals continued 

■ OOIUP(»MEXDOO , !tayo^S/tayra4 


GRAINS AND OIL SEEDS 

■ WHEAT LCE (E par tenna) 


SOFTS 

■ COCOA LCE (E/tonne) 


PmAoua 
WgMow 
AM Official 
Karti dose 
Open fr*. 


Cash S mtfts 

13254 13322-32 

1301-2 1328-9 

130871306 135971323 

13072-60 1333-4 

1347-8 

248/981 


Total dafly tumour 54295 
■ ALUMPBWfl ALLOY {5 per tonne) 


Satt Daft Dm 

pikt drags Up to H M 

May 3867 > «68 

Ja 3812 +67 382S 3805 72£48 31,771 

M 3869 +07 

Aq I 3840 +07 3860 38U 21235 £179 

Oet 3877 +68 3860 3869 4971 151 

D« 3812 +69 3922 3965 14212 1.190 

TMaf »6W 37923 

■ PIAHNUM NYKffiX (50 Troy Ozl; JAroy at) 


Ml Pqito 
otto mm 


llBh Lte 


8673 +058 
8995 +670 9995 
-IOL90 +690 19190 


CtOM 
Prawteua 
WgWtow 
AM Official 
Kart) dose 
Open un- 
load dafly turnover 


1330-40 

1315-20 

138571380 

1820-30 

1335-40 


M 4029 +44 4949 3965 16500 2 980 

Oct 4657 +47 4060 4039 4117 338 

JM 4079 +61 4089 4046 1988 55 

Apr 4099 +64 4092 - 1935 100 

mu turn 297 a 

■ Pftl 1 ADflff 1 NVMEX flOO 1>py az.; S/Doy ca.) 


■ wgATCSTg90Xwrnift:<^ntsmoKatiu«n«o 

tty 315/0 -X9 317/0 315A 465 S 


Opeo 



Salt 

Dayt 



Opoa 

M 

w 



mtaa 1 

rftaaga 

m 

LOW 

H 

183 

12 

May 

831 

+11 

930 

920 

105 

17 

1,103 

277 

Jta 

967 

+2 

972 

949 

24,161 

4,400 

532 


Sep 

879 

+5 

990 

971 

14-317 

i«n 

ijns 

32 

Dac 

BBS 

+4 

urn 

99* 

21J397 

1.186 

I.Z11 

2 

Mar 

1024 

+7 

1031 

tow 

27JBS 

1i23 

388 

45 

May 

1040 

+8 

11 m 


1£320 

171 

£ZT> 

373 

TOM 




HUM 

£**> 


meat and livestock 

■ U*g CATTLE CME (40.0008*. QtKMIM 

Mast Daft om 

mm mm N (M H H 

JM ST ISO 6»5 as 19 6MM 37, IE 7.18 


■ COCOA CSCE (10 tonnes; S/tomet) 


3350 -U> SOB 33V4 39770 

338/0 -OK 338W 336/0 3990 

3350 -OH - 250 


SO 

m 

1243 

-32 

24, OSS 

Jta 

1274 

•M 

£270 

Sap 

1298 

-U 

£860 

Dae 

1330 

-17 

290 

■tor 

136$ 

-13 

3£3« 

m 

Tote 

1384 

-13 


hood <0550 874C0 86860 17728 36*1 

S mm -o<so non nn tun m 

DM HUES -0309 71700 *1U 6344 1907 

M 71.no 6575 71125 71.BB 4,5* H4 

Z 73.179 0130 73750 7?«0 M0 * 

a,m t+ny 

m Live HOPS CUB [ttLOm cmn/faQ 

w 49675 4.125 «eT| U 8 tSI 

Z +as» 4U00 41800 48880 MM Un 

M 46300 6775 48490 +7300 60H- Z74 

0? 43775 6400 41259 45» W 

DM 44373 6373 +4730 4M99 IW US 

M 44525 6300 4+750 4009 5K )Q 




soft 




been spurred by strong New 
York buying where the price 
for arabica coffee futures broke 
through. 100 cents a lb. 

The International Coffee 
Organisation composite coffee 
price reached 104 cents per lb 
which led the members of the 
Association of Coffee Produc- 
ing Countries to say they could 
begin to release 4m bags held 
as part of their retention 
scheme. Brazil sanctioned on 
Thursday the sale of some of 
its stocks held as part of the 
scheme. But even so, supplies 
are likely to remain tight 

Coffee stayed on the boil yes- 
terday. Traders said these was 
little fresh news but there was 
heavy fund buying. New York 
again set the tone, helping to 
push the July futures price on 
the London Commodity 
Exchange up another $100 a 
tonne to $14)90. Second-month 
prices subsided lata 1 as traders 
took profits and settled back to 
$1,956. up $66. 

Cocoa futures rose this week 
in the wake of coffee, but trad- 
ers said the rise was driven 
mostly by speculative activity. 
Yesterday, buying dried up 
once July peaked at £972 a 
tonne. Prices tumbled later to 
dose unchanged at £955. 

Deborah Hargreaves 
and Kenneth Gooding 


to LEAD ($ per tonn^ 



Ctoaa 

481J&4LS 

4366-00 

Pipvtous 

481JLZ5 

4786 

H0Mow 

- 

606/478 

AM Offictta 

471JWL5 

4886 

Karti ctoaa 


502-4 

Open toL 

35357 


Total daily turnover 

12591 


to MCMB. (S per tonne) 


Ctoaa 

8288-95 

6865-70 

Previous 

6650-60 

5B30-40 

HgMow 

- 

0370/5820 

AM Official 

8245-66 

6320-30 

Kerb doaa 


634566 

Open int 

58,450 


Total dafly turnover 
to 7W 0 par tonne) 

20^41 


Ctosa 

5500-10 

5560-70 

Previcwe 

53806 

54406 

HigMow 

- 

5620/5440 

AM Offidta 

544060 

5485600 

Karts close 


5560600 

Open InL 

16546 


Total dafly turnover 

5,762 


to ZINC, epeteal Mgh grade ($ per tonne) 

doss 

S66L6-7J 

9786 

Previous 

950-1 

971-2 

HigMow 

943/9476 

986/989 

AM Official 

B48JS-£0 

969-70 

Kerb ctoaa 


9746 

Opan ML 

102648 


Total dafly tumewer 

12.751 


■ COPPER, grads A (Spar tonne) 


Ctoaa 

218860 

2178666 

Prrrrious 

2121-3 

21186 

MgMow 

- 

2160/2100 

AM Official 

2172-4 

2183-4 

Kerb ctoaa 


2170-1 

Opan M. 

193,682 


Total dafly tunouar 

B8A92 



JM 

135.5a 

-LOO 

137.75 13*50 

£461 

128 

Sap 

13540 

-160 13760 

13*25 

1,777 

56 

DR 

13&40 

-160 13*00 

- 

825 

- 

Mta 

134 JO 

•160 

- 

- 

6 

- 

MM 





4680 

188 

■ SILVER COMEX 000 Trey Ota; Cema/troy az.) 

■My 

64*0 

+46 

5*26 

5376 

394 

35 

Jn 

5409 

+46 

- 

- 

3 

- 

Jta 

5435 

+46 

5*86 

5400 32,43+ 21684 

8te 

54*4 

+46 

5536 

94*0 

£379 

851 

DM 

59*0 

+46 

5810 

5636 11630 

685 

JM 

55*1 

+46 

- 

- 

32 

- 


■ C8T {5JQQ ba mre cartafiSSto bmtaQ 

Hay 200 a - 28QM 2590 1<500 6745 

joi 36uo -oh ana zansnun anoo 

Sap sn 4» 253M 251*117990 &SlS 

Ota 248* -0* 24ZQ 244* 384290 46380 

Nr 254M -OH 254* 252* +6179 6480 

May ZSBH -OH 25S4 2SW V&O 10 

tow ixnaiaum 

■ BARLEY LCE (E par wrap 


■ COCOA QCCqgOFraflonnto 


M pOffl8EUJg9CM£ (+6000*34. ■ 


118918 MJM5 


Mat 

10*50 

. 

- 

- 

53 

- 

sap 

97.40 

+060 

97.08 

vat 

14f 

12 

Nor 

9865 

+*40 

mm 

9*25 

219 

20 

Jan 

9*75 

- 

- 

• 

30 

• 

Mar 

10LS0 

+020 

- 

- 

10 

• 

■tay 

BUM 

+£15 

- 

- 

5 

- 

Total 





SSB 

32 


iQtoveoQa into nfc 

■ COFFCE LCE Q/tonnoJ 

mat 2000 «« 2050 2000 1.T84 85 

M W57 +07 1980 WO 15924 2928 

m 1821 +ra 194B U8S 14JS6 2.434 

Hoa 1888 +78 1918 1873 5984 W* 

Jm 1888 +80 1900 1800 6085 388 

Mr 1807 +88 1877 1839 2.185 451 

lam 4S «7 6*20 

■ COflOIiXrCSCgt372QOB»;CTm«^x9 


45500 -6523 48700 45100 719 8 

44425 -1280 48.1 DO UOOO 6714 U.473 

42.575 -1959 44990 42.100 1,828 K 

G635Q -1.150 51250 SUB) M H 

49550 -0873 - «W 34 j 

51409-1000 -31409 tS 1 

7JH0 1JB, 


LONDON TRADED OPTIONS 

atrtea prie* * w»n*» — can— —Phm— 

■ ALUMINUM 


ENERGY 

■ CmJOeOtLNYMEX (42900 US Btoto-Mrandl 


uamt Oaf* 
prica dta>ga Mai 
Jta 1&H -604 1654 

JtM T7J5 +605 1793 

tag 1720 +097 1792 

tag 1790 +609 17^45 

Oct 1790 +613 1796 

No* 1790 +600 1790 

DM 

■ CRUDE 08. PE (t/bom9 


im m w 

1613 9(902 MJB* 
1795 95968 44,396 
1793 41928 16964 
1790 36488 79«3 
1790 16,418 5,190 
1792 12928 1941 
440982 W/BOZ 


■ aovABEAWs car cMiotbtt wig wto aoa wrap 

Mar B8BH -H 871* 066/4 15,486 3.415 

Je4 885H -2* SOK 884*336885126185 

tag 858* -2H 881* 658 12 85.180 11946 

San B3B/2 -2* 838 fl 835* 37988 5975 

Ns* S18H -0* 520*4 SISH 221900 46375 

Jta 825* -0/* 828* 823S 21 955 225 

DM 716*25n09M 

■ SOYABEAN 08. C8T *6900*88 cann/to) 


Ltatat B*J*a Opta 

prica dang* to H W 

1692 +608 1671 1M3 45/17 22935 

1625 +608 1642 1617 6Z£» 25981 

1611 +604 1628 1994 20928 2929 

1603 +093 1615 1685 11944 1985 

1892 +607 1698 1680 £785 638 

1687 +607 1690 1687 4£B 58 

187972 SUBZ 


my 2605 +603 2995 2681 2908 1910 

M 2896 - 2900 2671 38918 6818 

tag 2898 -606 2689 2848 12989 2.104 

2# 2613 -606 2614 2795 16388 803 

Oct 27.19 -601 2790 2790 7,774 KB 

Dac 2643 -606 2845 2823 15,875 6304 

ToW 83922 17/0 

■ 8QYABEAW MEAL C8T flOO ttna; S/jaa| 


■ HEATHW OB. WHEX (42900 US afc: QfllS tatoj 


■ LME AM Offlcta E/S rata: 1.4870 
LME Ctotaag 81 rata IBM 


Span .4890 3 mSislAOTB 6m0tt1A981 BnAxl.4888 
■ MQH GRADE COPPER (COMBQ 



Ctaae 

Day's 

mm Mgh 

law 

Opra 

1st 

Vta 

May 

10X75 

+445 10260 

10060 

2622 

538 

Jsa 

10230 

+4.10 10120 

10*30 

1,100 

89 

Jta 

10160 

+3.70 10160 10*10 42403 

19 

ABB 

10160 

+345 9*60 

9*80 

482 

42 

sap 

10*20 

+360 10*40 

9860 

£327 

8 

Oct 

ToW 

9960 

+£85 

* 

202 

B£7M 

980 


Utat Dari 
prica mm s# 

Jm 48A0 +618 4895 

Jcl 4685 +623 4895 

tag 4890 +633 4690 

San 5625 +618 5680 

Oct 51.15 +618 51-20 

NOV 5195 +613 52.40 

TaW 


loir ta M 
4620 «987 9950 
4690 33978 6970 
4620 14981 1963 
5615 11949 887 

5190 8948 136 

5190 6438 64 


■ay I860 -Of 1879 1859 1217 611 

Jit 1863 -89 1879 1861 36904 7,418 

tag 1859 -09 1865 1852 13986 1,113 

to* 1839 -64 18+9 1861 6285 878 

Oct 1861 -60 1807 I860 6285 700 

Dae 1789 -63 1789 1789 17978 2937 

TOM 881,133 1291* 

■ POTATOES UCE £/tana) 


H8| 11590 +685 11590 11290 121 T2 

M 11670 +625 11825 11190 33,181 11986 
8«p 112.15 +395 11390 11190 14257 2961 

Ota 11090 +290 11290 10990 8915 BIO 

tar 10895 +195 11190 10680 3,708 553 

May 10725 +025 11190 U72S 407 3 

Ml 5M061B9M 

■ OQfTgQOCatUScBna^Kwnd) 

Hay t2 MM Pita tay 

Comp. 0M) - 103.47 102.78 

15 cay craOBa ... ■ 8IAI 8684 

■ Wo7 PREMIUM RAW SUGAR LCE (ftantafoa) 

ta 1224 -614 1290 1640 2989 88 

Oct 1225 -605 - 575 

Jm 1192 - 1192 

aw 1193 -602 - 5 

TPM 6197 74 

■ WHfTE SUGAR LC£ gAorme) 

tag 33630 +610 34290 33590 12945 2937 

Oct 31680 -090 31650 31790 7920 480 

Dm 30630 -650 31490 - 576 3 

Mar 30680 -670 31190 - 1.434 4 

May 30720 -680 - - 200 - 

AW 31090 -680 - 215 - 

Total 229<M 2904 


09.TOIME 

Jui 

Oet 

Jta 

Ora 

1300 

71 

102 

22 

32 

1350 

43 

73 

43 

SI 

1400 

2$ 

50 

7$ 

77 

■ COPPER 
(Grade A} LME 

Jui 

Oet 

Jta 

ora 

2100 

118 

120 

118 

7$ 

2150 

88 

95 

<8 

» 

2200 

67 

74 

66 

127 

to COFFEE LCE 

Jta 

Sag 

Jta 

Sap 

1550 

406 

388 

1 

U 

1600 

ass 

34$ 

2 

22 

1*60 - — 

313 

30$ 

a 

32 

to COCOA LCE 

Jta 

Sap 

Jta 

•op 

875 „ ... 

86 

115 

4 

11 

900 ~ 

85 

86 

8 

17 

825 - — 

47 

78 

1* 

25 

to BRENT CRUDE ME 

Jun 

Jta 

Jun. 

Jta 

1550 

- 

- 

- 

10 


L ;0 ^- 


1600 

I860 


LONDON SPOT MARKETS 

■ CRUDE Qtt. FOB (par twMLh* +w 


to SUGAR ii> CSCE p1290jtoM6cantijfcal 


144988 23283 


■ GAS OOL RtotaMl 


lav 809 

Itar 1050 .... 

Apr 1359 -61 1369 1360 544 

May 1409 

Jta 1079 .... 

TaM 844 

to HtBQHT HHWPQ LCE fflOflndta ppjBjj 


ta 1196 -619 1235 11.78 51997 7.418 

Oct 1193 -611 1220 11.78 40935 6225 

tar 1193 -60S 1190 11.45 1*473 2453 

■toy 1198 +092 11.74 1192 2928 575 

JM 1194 +602 1197 1194 1922 35 

Oct 1191 +692 - 513 24 

TIM 1179101*732 

to COTTON NYCE (50.000&*; cena/*») 


Dubai SIS, 00-5. CCw +632 

Brant Stand (itotaCB 81*54-898 +6315 

Brant Stand (JUQ S163S-638 +032S 

W.TJ. (1pm cal} *1790-793*1 +6305 

to CNL PRODUCTS NWEproopI datoity Of 0mN| 


Pramlum Gmom 
G taOB 
Maawy Fuai Ofl 
NapMha 
Jot Fuat 

mma u a Atgua AN* 


0181-183 +2 

5153-154 +99 

388-87 +68 

SI 56-1 58 +2 

$187-188 +1 


Srit Daft Dm 

pica cfataga aph Low tat Vol 

Jta 15275 +675 15490 15290 30731 *421 

ta 15375 +190 15490 15325 1*018 3960 

Aug 15600 +675 15573 15425 *858 1229 

Sap 15875 +190 15725 15*£ *388 252 

Oct 19990 +190 15975 15875 5902 281 


No* 18190 +190 18190 18050 3964 


PRECIOUS METALS 

to LONDON BULLION MARKET 

[Prtcag supplied by NM RothachBd) 

QoM (Hoy ol) $ prica E aquiv. 

Ctoaa 380.10-38090 

Opantag 38090-38090 

Morning fix 38195 254957 

Afternoon Ac 381.65 25*484 

Day's Ugh 381J048220 

Day's Low 37890-38020 

FYnrioua doss 37890^7920 

LocaLdnMsan QoM LoncBng Rstas (Va U8S) 

1 roontfi — —494 8 months 4,82 

2 months 4.17 12 manths 5.10 


■784 11214 


■ NATURAL GAS NYUBC (10900 nmBta; SftnraBtaJ 


QoM (Troy 02 ) 
Cion 
Opening 
Morning Bx 
Aftamoon fix 
Day's ngh 
Day's Low 
Pn+rioua doss 
Loco Uto Masn 

1 month 

2 months ■ . ■ 

3 months 

SBwer Fix 
Spot 

3 months 
8 months 
1 year 
QoM Coins 
Kr ug wi w d 
Mspta Leaf 
Now Sovsratgn 


(jtoat Day's 
prica dtanga Hgh Lai 
Jta 1910 -0037 1940 19 

ta 1980 -0923 2900 19 

tag 2917 -6016 2930 29 

Sao 2985 -6008 2972 29 

Oct 2.120 -6008 2.128 £1 

NBV 2205 -6020 2220 22 

TaW 

to UNLEADB) QASOLME 
wnax (429QQ tBgtondUSgtoaj 


Lew tat Vol 
1900 1*148 7940 
1972 1*100 *0*1 
2910 109B8 1988 
2955 11215 833 

£110 7987 433 

£205 *829 331 


May 

1480 

+11 

1465 

1490 

MS 

81 

Jta 

8*37 

+040 

61.10 

7960 887 

- 

Job 

1399 

-3 

1370 

1399 

m 

154 

Oct 

75.15 

+*18 

75.45 

7469 22683 3614 

Jta 

1283 

+9 

1270 

1263 

985 

99 

Dac 

73J3 

+*33 

74.14 

7*45 4J90 

221 

Oct 

1363 

■i 

1365 

1363 

342 

5 

He 

7471 

+*36 

7965 

74.50 19.161 2667 


1385 


1389 

1385 

185 

20 

Itay 

7525 

+*40 

7*50 

7425 2203 

207 

Apr 

T39Z 

•I 

1399 

1332 

48 

20 

Jta 

75.73 

+058 

7560 

7S69 643 

01 

Total 



2608 

338 

Total 




*1,046 £989 


Oom 

Pnw 





to ORANGE JUKE NYCE (15600BW contaflbe) 

MR 

1500 

1481 





May 

0*15 

-*90 

9260 

9*15 38« 

78 








Jta 

82.73 

-080 

99J0 

9260 1*819 1.183 








■to 

95.10 

-030 

9760 

83.05 2,781 

513 








NO* 

9*75 

-*50 

9660 

9*75 1272 

170 








Jaa 

9*50 

-065 10*25 

B&00 2,194 

94 








Hr 

9995 

-*30 10163 

9965 758 

29 


isuni 21913 


p/lrey az. 
36190 
36646 
37090 
382.10 
S price 
380388 
38090-38390 
88-82 


us cts aquiv. 
54226 
546L0O 
55*40 
57290 
E aquiv. 
258-260 


Latoat 0aT> Opan 

prica change tBgh taw tat W8 

5090 +027 5120 5090 3*725 11987 

51A0 +636 5175 5035 21,106 *987 

5195 +631 5195 5190 13958 2304 

51.10 +618 5190 5095 8901 1969 

4990 +611 4990 4890 £802 594 

4660 +606 4890 4890 £438 122 

1*723 2*823 


SPICES 

Whtta pepper - tawar seAem end aom mom 
buying fesarast tor tfw now crap padDona 
Prfcss ra mi ineri unchanged. Jdytict dilpmant 
is aBtosd at USS297S dL Stack pepper - 
prices stadia. Buying Intarast *81 low. Fsq spot 
at US$1975 and a *ta 1 at about US$1,656 
tado n ea is reports mat mo Lampang crop wtt 
bs ddiNtL ends and chraraon - spot pari- 
tfons tight. In don aa ta n axport capacity is 
booted untl JuneUiiy. Moss moving up Aip- 
ther. Nutmegs - Prioas in the Far East a re 
Incre asing but the Baopaan maricat Is not yat 
toBovring because of the unsold Modes more. 
This aBuoOon Is oxpsetad to diange as soon 
as these stocks have d isa ppea red . Pimento, 
doves u n cha nged. 


21982 2987 


VOLUME DATA 

Open Intarast and Voiuroa data shown tar 
comma traded on COMEX NVMEX. CBT, 
NYCE. CME. CSCE and ERE Creda 08 are one 
day In si ra sr s . 


INDICES 

■ REUTERS ffi 


: 1B79/31°100) 


May 13 May 12 montfi ago yore ego 
18867 18119 18069 16889 


GoM (portray aft 
Star (per trey oztf 
Platinum (per troy ot) 

f tatadum (par troy ot) 

Copper (US prod) 

Lead (US prod) 

Tin (Kites Lumpte) 

Tin (New York) 

Zlno (MS Prtans W.) 
Code (Bus wdghQf 
Sheep gve vreighOff 
Pig* (Bve weight) 

Lon. day sugar (nv/) 
Lon day sugar (Ms) 
TWa & Lyle export 
Bwley (Eng. lead) 

Mates [US No3 Yalow) 
Wheat (US D«k Norm) 
Rubber (Judf 
Rubber (M? 
Ruttwr(KLnSSNo1 Jun) 
Coconut 08 (phlQS 
Palm 08 (Mahay J§ 

Copra (PhEi 
Soyabeans (US) 

Cotton OutSook A Index 
Wootaps (B4s Sups') 


$38639 
542.50c 
$38*40 
$13*75 
10390c 
36.13c 
1498r 
25690C 
Unq. 
129.48p 
147.42p 
B4.17P 
$29240 
$34390 
C30600 
Unq. 
$13890 
etaaox 
72-OOp 
722Sp 
ZS72ftn 
$586 0z 
S4779y 
$3719 
D839y 
85.70C 
422p 


p.-aw^.-r, 

U t ry ._ f j , 




CRB Futaraa (Base: 4/9/56-100) 


E per tonw iaSn+ MharwtM stated, p poncofta c c+rts/to. 


May 12 May 11 month ago year ago 
22722 228.78 22296 20*83 


r rtxjoanip. m MMeystoi canta/ta. s JimUuL y Jun. m M. a 
H»n*v. V uxwon pteeicaL * of fModaot. # Bteoi 
nrnkei dtaee. ♦ Steep *he ++ipM priced. * Cnange on 
teea* pnarielanei piioea. 


US INTHREST RATES 


LuncMnw 

Oneasaili. 

Prim rah 61* T» motel . 

boKarktai nto 5*t HaaanonB 

FcCfl aula 3+i Si- nadi _ 

WiiaalaatlrtoiMdUH- 3* Onyaar-. 


Traaaury BtBs mi Bond VMfe 

- Taoiaar 

izz; 422 ftsjawL— 

498 looser 

543 30pte 


■ LONG QHJT FUTURE OPnOfOtUFFg £50900 64tha of 10094 
Strata — CALLS — ■ ■ IVTB 


to US TREASURY BOND RJTURE8 (CBT) $100900 32nda Ot 10016 

Open 1 mmt Change Hgh Low Eat voL Open irrt. 
Jui 102-12 102-01 -O-IO 103-15 102-00 537963 422974 

Sop 101-13 101-03 -0-10 102-15 101-03 9983 88986 


EM voL total. Cato 3207 An 230*. Pteriw* days open rt, Cato 1 08238 Put* 75702 


101-09 100-18 -0415 101-87 100-18 438 


BOND FUTURES AND OPTIONS 


France 

■ MOTIONAL FRENCH BOND FUTURES MATTQ 


■ca 

■ ECU BOND FUTURES (MATE 1 ) 



Open 

Son price 

Change 

«9h 

Low 

Eat voL 

Open bit 

Opan 

Sett price 

Change 

High 

LOW 

EaL voL 

Open Im. 

Jim 

120.18 

12068 

-002 

12062 

12*10 

110602 

116,748 Jun 

8768 

8762 

+*60 

87 JO 

8760 

2666 

9643 

Sap 

11922 

11*34 

-064 

11968 

11960 

3628 

19682 








Dec 

11868 

11 £40 

-064 

11868 

11868 

746 

5606 









japan 

to NOTIONAL. LONG TERM JAPANESE GOVT. BOND FUTURES 

(UFFT) YlOQm lOOtfie Of 100% 

Open Ck»e Chongs rtgh Lew Eet vol Open Int 
Jun 11328 11398 11325 2130 0 

Sap 11292 11£A5 11297 236 0 

* LffFE co nn ect! traded an APT. Al Open htemt Oge. era tar previous day. 




to LONG TERM FRENCH BOND OPTIONS (MATB^ 




Strite — CALLS - ... pure 

Price Jun Sep Dac tan Sap Deo 

118 - £07 £10 028 1.75 

120 0.74 1.48 - 6® £18 

121 028 192 - 194 £70 

122 097 673 092 - 898 

123 092 048 672 £81 - 

EM vol rate. Cato 19977 PMe 1*7M . Pmrioue dejTm open tat, Cato Sli.ite Puw 89*90*. 


FT-ACTU ARIES FIXED INTEI1EST INDICES 


UK GBta Price 1 


1 Up to 5 ynoraC 

2 6-16 yeas (23 

3 Over 15 yeanfc 
A taedeentetes ( 
5 A9 stocks (61) 


Fri 

May 13 

Day* 
change M 

Thur 

May 12 

Aoouad 

Merest 

kdac| 

yWd 

tadoo-Mrad 

Frf 

May 13 

DayV 
change % 

Thur 

May 12 

Accrued 

Merest 

toa$ 

yWd 

12360 

+068 

12265 

162 

464 

6 Up to 5 years (2) 

7 Over 5 yean (11) 

8 All stocks (13 

18461 

-064 

18468 

*99 

£53 

14361 

+069 

14262 

1.75 

562 

17£10 

-068 

17860 

161 

169 

16245 

+1.15 

16*69 

264 

468 

178.12 

-068 

17858 

*96 

L77 

181.70 

141.11 

+063 

+065 

16061 

14020 

*57 

162 

£12 

462 

9 Doha and town (76) 

13*97 

+*57 

13063 

247 

4.17 


Low coupon yteid - 

13 May 12 Yr ago Ugh 


■** 3 


May 13 MRf 12 Yr ago 


May 13 May 


Germany 

to NOTTONAI. OERUAH BUND FUTURES (UfTq- DM25QJKB IQOttta ot 100% 

Opan Sett price Change Ugh Low Eat vol Open tat 
Jun 8528 9*27 -602 9599 8497 123185 187977 

Sep 9424 94.78 -O.OI 9427 S4A6 2244 21135 


7.72 791 

607 8.18 

8X8 619 

82S 631 


7.11 600 (8£ 
609 632 m 

631 632 (9/e 
663 829 (9/t 

Inflation rata 5% 


*57 fl 871) 

630 pan) 


641 po/1) 
6S2 (2471) 


792 602 799 823 1 

61 B 628 651 641 1 

618 629 681 641 1 


642 (19/1) 
639 20H) 
642 (2071) 


603 611 7.62 631 1 

647 660 678 672 1 

635 647 680 658 1 


591 not) 
*63 can) 
665 00/1) 


3-54 150 2.74 153 (4/5) £13 (4/1) 

392 399 390 392 (9/5) £66 0O/1) 

Syocra -- 

994 999 696 991 (B/5) 7.19 (10/1) 


1.19 (16/2) 
£70 00/1) 


to BUta> FUTURES OPTKaO (UFFq DM250.000 points of 100* 


Strite 

Price 

Jun 

Jta 

CALLS — 
Aug 

Sep 

Jrai 

Jta 

PUTS — 
Aug 

Sep 

9800 

*60 

066 

1.12 

168 

063 

1.10 

168 

162 

9650 

063 

062 

090 

1.13 

066 

168 

164 

167 

9600 

*14 

045 

*72 

063 

067 

1.68 

166 

£17 


jndMjtajrad - Inflation rata 5% - Wtattan rate 1096 — 

Up to 5 yrs 394 390 2.74 393 (4/5) £13(4/1) £04 £58 1.95 294 (13/5) 1.19(16/2) 

over 5 ym 392 399 390 392(9/5) 296 00/1) 3v45 £42 £43 £45 (13/5) £70 PGM) 

Debs* toons -Syoora— — — Ifiyaara — - — - — 25yo*r* 

994 999 696 991 (B/E) 7.19 (10/1) 991 637 094 646 (Si'S) 799 00/1) 928 9.35 689 9.43 (8/3) 

Average gross redemption yields are shown above. Coupon Bands: Low: 0%-7?»%; Medtam: 8%-103iW: High: 11 % end over, t Flat ytald. ytd Year to data. 

FT FIXED INTEREST INDICES GILT EDGED ACTIVITY INDICES 

May 13 May 12 May 11 May 10 May 9 Yr ego Low May 12 May 11 May 10 May 9 


Bet voL tou. Cato 13280 Pula 7481. Rrarioua dafa open M. Cato 32109 FUa 283770 


FT FIXED INTEREST INDICES GILT EDGED ACTIVITY INDICES 

May 13 May 12 May 11 May 10 May 9 Yr ago Ugh- Low May 12 May 11 May 10 May 9 May 6 _ 

Govt. Sees. (UK) 04.48 9£94 8677 83A5 9£20 94.71 10794 9390 G» Edged bargains 77.1 902 B67 7£4 1049 

Read totaraat 11610 11197 111 M 11092 11615 11092 13687 11092 5-dey overage 868 960 9£0 866 86A 

* tar 1894. Oonenenant B e rutW ee Nph etaee c on p «e« ln n: 127 AO (8n/3S^ km *618 (3rt/7G). Ftaed tatareet iqpi tance oompaesore 1*L» B1/UBq . low 5093 (W7S) . Bate 100: Gouvnmwit SeeuHai ISM)/ 
20 and need k i tan te 18ZS. BE aoMy Indcaa r e b a n d 1974 


UK GILTS PRICES 


to NOTIONAL MEDIUM IBM GERMAN GOVT. BOND 

(BOBUSUFFg* DM250.000 IQOthS Ot 100% 

Open Statprfcs Change High Low Eat vd Open ire. 

Jim 10067 10060 -025 10072 10088 26 1772 ' 

Italy 

■ NOTIONAL ITALIAN GOVT. BOND (BTP) FUTURES 

(MFFE)* Lira 200m IQOtha qf 100% 

Open Sod price Change Ffigh Low EaL vof Open taL 

Am 11640 112.12 -032 11£SB 11195 33563 78066 

Sop 111-55 11199 -032 11190 11190 103 5220 


M „ rgg* 

Raa Price E tor- ngn bwr 


_VMd — 199* _ 

K RSI PriCSE + BT- m low 


_V1te« -1BN- 

Pl ca Piter +ir- m uw 


to ITALIAN GOVT. BOND tBTP) FUTURES OPIKteS (Uffg LkaZOOm lOMra ot 10036 


Strike 

Price 

Jun 

Sep 

Jim 

- PUTS 

Sap 

11200 

*59 

1.99 

*47 

£70 

11230 

065 

1.78 

*73 

£97 

11800 

*19 

165 

167 

026 


Era toL team, cam 3826 pus ima. Pravku* av* span w. era* 78Z0B Puj» tedit 


Sbamr |Uhb te toBM TOanf 

Tress. lOpc in. 695 

Bah IZIzpc 1884— 1224 

Tta»9pC18B*tt *63 

12PC19B5 n.«7 

BCD apcSta 30-85 398 

ia’«c1905 9J0 

Dsta12*pclB9S^_ 1195 

14K1896 1247 

1»t«c18Sett 13.18 

BKhlStapc ia*ti 11.79 

OamatenlOpcIBBB — 92B 

T«SI1SU)Cl9B7tt 11JS5 

toes lOteK 1887 670 

Tlsa 6*pc 1887TT 94T 

EtfBISpC 1997 1224 

9*pc1998 £14 

Traai7Vpc 1888ft TJ 2 

Tnaj6l«ic199MBtt_ *91 

14PCVB-1 11.57 

Treat iSzxVBft 1256 

Ba* l^C 1988 10+0 

Haas9<2PCl98Bff 591 


-roojjal 
498 1024 
455TOUJK 
*08 104^ 
49B 83 

*72 10S4 

we mm 

£18 1124* 
646 11% 
*50 112U 
*91 10® 
797 114* 
7.10 108£ 
729 10*4 
7/C 1221) 
753 10BR 
751 99 i, 

7.44 37B 

77312D)ini 
755 IZBjJ 
7J3nSBej 
7.77 10BA 


1Q2A 

10+Q 

10313 

107* 


+* UDC 

+* 113% 

+* in* 

+4 121 U 
+* I17B 
+* 1U* 
+J* 121H 
+* 114* 
♦* 110,i 
+ti 131a 

+j+ 114* 
+* 106* 
+* 102 
+A 131* 
+4 1«* 
+ii '2«i 
+* 115* 


1toei11>2lic 2001-4 893 

Batata -Fat* V9-4 4J3 

CUmatanfliac 2004 £71 

1hto«dE2DIMfl: 743 

DWl’jUCaffi £69 

TtteH2>apG 2003-6 087 

71ipe2006ff 798 

8petWB-«t* OtB 

ItwBllVpc 2003-7 854 

Tren 8*5X2007# *32 

13*11*: "0*-® 1*19 

Tran too 2008 ft £41 


057 115Q 
7.12 74* 

£17 109* 
£02 «Wa I 
£17 109* 
£S312Sta>d 
*11 97* 

&1B B8>| 

*52 118H 
*13 102* 
*54 132)3 
£14 107* 


+4! 1»15 114* 
♦H 88* 72* 

+* 12S* 107 

+M 105** 89* 
+B 125ia 107V 
1*3/. 123V 
112)3 95V 

+A mV BOB 
+C 136* 117)3 
+43 110* 10QU 
+1 151* ISO* 
+1* 124U 104* 


Itesa. 2pc IM. — (10251 - - 137% 

2PC8B B57.S) 251 355 196V -ta »V 

VMCmt — (135 fl 250 *49 108V 4 i«* 

JVpcDI (Jig *10 147 180V -A ]£> 

2VPC1B (785) *18 *49 18M -A lWl 

4VpeW» (1355) *22 *51 110V +S 1«?l 

2x IX *25 *45 170V 

ZtapD-OB PSA *38 XUtSVW SS 

2*JPC'11 P4jG 141 359 ICO* -h nS« 

2Vpe'IS (862 1*0 *62 131*. "ta HS 

SVlie'IO *40 358 140V -V St IS 

2Vpe , »' (B3A 354 387 ISA -h isqi !?♦? 

ZtapCMtt p7.7J 355 107 112* -V 1®lf 

*VPC ■306_413S.lt 355 *88 1114i , -li, W« 


1 V-, 


to NOTIONAL SPAMtSH BOteJ FUTURES (MB^ 



Open 

Sett pries 

Change 

Mgh 

Law 

E8L WL 

OpMl W. 

Jun 

9669 

9661 

-0.10 

9*57 

9824 

3£306 

113687 

Sep 

9*00 

9560 

+165 

9*00 

pftpg 

348 

1634 

UK 









RntoHRsaa Tan 

Bail 12 Vpc 1999 

Tiata lOtaiK 1989 

TnasGpeiBSBR 

CMakniOVpc 1099- 
TiwngHBTS 


■ NOTIONAL UK Q6.TRfTURE3(UFT^* CS600Q32nds of 10096 

Open Sett piles Change Ugh Low EsL w) open 
Jim 105^6 106-04 +1-02 105-06 103-27 67008 128712 

Sep 103-08 104-00 +0-31 104-00 103-08 435 608 


Rmi«e2an. 

ubexxn 

TgCWtt — 

7)JCU!A 

9VPC2002 


I Ope 2003 £01 

• T w>' akxh tt Ttavtrae to 1 


755 IIBta 
7$911DtaBl 
753 8S) 
756199)1$ 
-MM 
752 I0*B 
821 122V 
&17 tem 
7JB 94* 
751 94* 

852 ioaa 
*11 99*0 

853 111 


+ta 128* 
+A 121* 
+H 101B 
+H 121)3 


Pair films Yaw 

Trees Bpe 2009 MS 

Tran OIMflC 2010 7,45 

CBwSpcbi2011 # 35* 

flea 9pC 201 2tt £37 

TraasSVpc 200B-1 2ft- 7.16 

Trial spe aritt an 

7Vpe2D12-15tt 759 

Trass BVK 291 7tf £19 

Ejdi 1 2oc '13—' 1 7 £65 


£15 SB* 
£02 83)311 
B.J3 1071) 
£11 IDS* 
758 78JJ 
£08 89 

£08 BSD 
£08 108V 
B28135Val 


+U 115* 9SU 
+3) SB* 81 H 
+>* M9U 105V 
+1* 1Z7V IBS) 
+fi B3V 7SV 
♦1* 117B 06V 
+1* 114V 94* 
+1V 128V 104* 
+1B 1SSV 1*2* 


Prespedtwreal redemption rats on protected ItetegsrffQ « » 
and O EH. H figure* In perenB w ae* ***** R “ 
tadsxkig 0# 8 monms prior to laeue) and Iwm beta wSteaew 
reflect laboring of HR to 100 In JmMy 1967, Cww™&l * 
£945. RPI tar August ISO*: 1415 sM tar March 1994: 142* 


Other Fixed brteieeft 


-.TDK-. 

■om h M wcat+nr- m 


-MU* 


+H HOA 
+* 135B 
4$ 12Z,V 

+)5 108* 
+U 101* 
+fl 123* 
+1) 113B 
+B 127* 
epplcteen. E 


warLaan3<zpctt— 

Com 3Vpc , ei 

Ttaste-Ofltt 

Cantegype 

im.2>2pc— 


/tealgnbete. d Ex dMband Oaang 


- 42V 

- 42VN 

- 66B 

35 

- 30V 

- 29V 
iilo-pioss are 


+V 69V #8V 

+ta 64)3 411) 
+B 71 5711 

-ta 44V 3*V 
+* 38V 2BV 
♦V 37V 2BQ 
atnm h poimda. 


MricasOai 11V2010 £17 

ten Oa* lOVpc 2009— £94 

BThb11V|>g2012 £« 

ktendCtaSVpcIQ £33 

SWCBBlWa— £89 

13pBW-2.-~ 1159 

HyrinUtaaSeBitoeSOU. 1*23 

Loom I3VPC 2006 1*31 

lMwd3Vocara* *97 

LCCSpcTDAft *67 

Mandwtarll Vpc 2007. *91 

MetWfcSpc’ff £48 

mmfe/W3V«wi. 

4Vpc£2024 

UU Mra SUM IB 1 # 2008 1152 


£81 121* 
£48 T14U 
*09 121V 

- 1014* 

- 101 V 

- HIV 

*43 1460 

- 131 

- 39 

- 35 

£40 116 

742 68V 
456 135V 
428 130V 

- 142 


+v i«v JE 

+4 IBS'! Wj 

- JS £ 

= ■^9 

= is a 1 

__ 158V «" 


r 








_glNANC3AL TIMES WEEKEND MAY 14/MAY IS 1994 


CURRENCIES AND MONEY 


MARKETS REPORT 

Dollar softer 


Dollar 


' ' ' Frenchfranc 

DM ffcf *!■’ ‘ ; ; ■’ Offtpair*;. ■ . ' -/ : .FFrpsrOM ' 

1 .72 'V -.• tflB.-:.- aS3 — : « — - <> jo - — 


The dollar finished slightly 
softer an the foreign exchanges 
yesterday as weaker than 
expected inflation figures 
introduced some doubt about 
the outlook for US monetary 
policy, writes Philip GatoOh. 

The market has factored In 
on Imminent ti ghtening from 
the Federal Reserve, but a 
spate of weaker than expected 
economic data has brought 
into question the extent by 
which rates axe likely to rise. 

The US currency finirfiad m 
London at DM1.6671 against 
the dollar from DM1.6708. 
Against the yen it dosed at 
Y104.755 from YlOftSB. 

The Greek drachma was 
under attack following the 
announcement of legislation to 
free all capital transfers In 
July. Anticipating a possible 
devaluation, the market drove 
the drachma down by more 
than one drachma to close at 
Drl4&10 against the D-Mark. 

The D-Mark was little 
changed in Europe, with trad- 


ing quiet as many dealers 
stayed away from their desks 
following flte Ascension day 
holiday on Thursday. 

The Bank of Spain cuts its 
key money rate to 750 per cent 
from 7.75 per cent and the 
Bank of Ireland cut its 
short-term facility rate to (L25 
per cent from 65 per cent 

Sterling traded very nar- 
rowly with the sterling index 
unchanged at 80.1 throughout 
the day. a closed at DM25012 

■ PSOB 4 hi Maw York 


•t.Tp 

>68 

; t.86 


1.64 

W- 


lev 


\ 


Vi 

. • • : 

, 

'. :x . /. 

■A ; 1 





■ 




....f 




■ 10k-' 


i'vn- 




I 

\y\ 

u:- r ^y 

P; 

y 


L ).* 


J- 

^ " 



NG-- 

\y 

• ■ .V- . 


. V' ■ 


xSo- 



3.42 


.3*48' r 



2JW* 


■•••: ..to : ; -.is 

Apiff iW4May - - Aprft top ft W ftatV " Apfrriafri May.' .. mraapar 

• Soun* rren^jfite.. v; - i ■ ,">V. : ... 


IS ' - 13 

AcxS TOMlftay 


3.44 


W 13 

April ISM May 


Mqr13 — Lta- 
rtJW Tw49BS 

in* 1.4976 

Soft . 1.4872 

1 T . 1.4961 


- Pro. ofcne- 
14997 
ivffim 

1.4836 

1.4983 


from DM2.6052 against the 
D-Mark. Against the dollar it 
dosed at $15004 from $L49Si 

■ US consumer inflation' for 
April rose by only QJ. per cent, 
compared with forecasts of a 
05 per cent gain. This led some 
analysts to revise down their 


estimates of what constitutes 
the “neutral" monetary policy 
stance the Fed is seeking. 

Mr Tony Norfield, UK trea- 
sury economist at ABN-AMRQ 
bank, said he could not see the 
federal funds rate - currently 
3.75 per cent - rising above 45 
per cent in the next few 
months. 

But Mr Steve Hannah, head 
of research at IBJ International 
in London. «rifl the from 
the bond market “is that the 
Fed is going to have to catch 
up with inflation expecta- 
tions.” With the US economy 


recently. The peseta finished in 

T ^Hnn at Pta82.65 a gates * the 

D-Mfcrk from Pta82.48. 

The Irish punt showed little 
reaction to the 25 basis point 
cut in the short-term facility 
rate to 655 per cent. It finished 
at K0.409 against the D-Mark 
from 120.410. 

■ Sterling futures had another 
good day with the December 
contract finishing nine basis 
points firmer at 94.02. Nearly 
22,000 lots were traded. Euro- 
mark volumes were low and 
there was little movement. 


The Bank of En gland did not 
operate in the UK money mar- 
kets after revising its forecast 
from a £25Gm shortage, to a flat 
position. 

In Germany, call money was 
firm, at 5.45/555 per cent, com- 
pared to the repo rate of 555 
per cent 

■ OTHER CURMDMCm 


M* 13 
Mwnr 


PUHd 

tack 

ILAJL 


E S 

154620 - 154767 1(0080 - 108.130 
090260 - MUMP 174600 - 175060 
04476.04497 02990-62085 

337950 - 338858 225300 ■ 225800 
2 B 08 J 5 - 281773 187200 - 187000 
58067 . 58117 38715 - 38735 


POUND SPOT FORWARD A.GAi? 


May IS 


Ctaafcio Chang* BHAXIsr 
mU-poh* on day 


Day's MM 
Mflh taw 


On* month Urn* montha Ona year 


Barit of 


Europe 

Austria 

Briatum 

Danmark 

Hntand 

Franca 

Qarmany 


iwy 

LuNamboug 

NattMriands 

Nonwy 

Portugal 

Spakt 

Sweden 

Switzerland 

UK 

Ecu 

SOftf 


(Sch) 178079* 
flEJFt) 51.4820 
(DKr) 9.7808 
8.1274 
8.5778 

_ . 28012 
(Dr) 370887 
OS) 1X1244 
(U 239*48 
(IB) 514920 
(Pi 2.8073 
(MO) 108353 
(Ea) 256211 
(Pta) 206.734 
( 8 Ki) 11.6103 
(S ft) 2.1389 

fi 

- 1.2975 

- 0940842 


<FFU 

©mi 


-0.0083 600 
-00674 500 
-00189 770 
-00108 190 
-00121 733 
-0004 999 
+1.209 350 
-0002 235 
-1.25 280 
-00674 BOO 
-0003 058 
-0019 312 
-0211 000 
■*0117 610 
-00104 019 
-00077 357 


17.6848 
SI 
98131 
01680 


-340 51.9927 


818 

024 

423 

817 

340 

067 

393 

421 

857 

IN 


25068 

372277 

1.0287 

238641 

61.6827 

23151 

109004 

25&301 

2O6L026 

11.0744 

2.1428 


17.5647 

51.3283 

9.7688 

01080 

OK55B 

24839 

368481 

1XB06 

238814 

51.3283 

27906 

108000 

250863 

208808 

liases 

21339 


-0.0007 968-: 


Argentina (Paso) 14988 *00003 964 - 992 14982 14950 

and (Cr) 230187 *3888 142-252 230252 225000 

Canada fCJj 28685 -08051 876-693 28713 28612 28702 - 1.0 28752 -18 28966 -14 878 

Merico (New Poao) 48962 *08107- 678 - 048 

USA (9 18004 *0801 000-007 18007- 14985 14805 0.7 1499 04 14999 08 607 

Padto/Mkfcla Eaot/AMoa 
AiaMi 
HonQ'Kofig 

Inda ffW 478841 *08279 478 - 807 478807 468490 

Japan (V) 157.169 *0474 096-243 157820 166.100 156789 2.9 158859 28 162884 38 164.7 

Malaysia (Mg 38152 *08002 136-168 38168 38000 

NmrZarimd (NZS) 28704 -08074 076-732 

PhBppinoa P&m) 40.0971 *08266 000-941 

tariAraMa m S82N *O80» 250-201 

Singapore (S3) 28313 *08015 300 - 326 

S Attica (Cony) (R) 5.4692 *08001 ON- 716 

S Africa (Flo) f§ 78367 *0.1471 200 -534 

South Koras (Wan) 120086 +1.44 900-071 1200.71 120087 - - - ' - - - *>- 

Tehran (IS) 408244 -08045 000 - 406 408900 40.1900 

thaland p) 378764' +08185 BOO • 827 .378827 37.7820 

190B raw tar 1 % IS. BkMAr ranwlii h «a Maai Spot taDto raow ct*r*» mat awaa daeknd plmam. Famed nm ai» not ttmafy «M«d to »• madaa 
tauaa tmpMbyamnt MwntnHaSMdtag bidiK oriaiaM ly lha.B*nk of Enpand Bma aunona 1985 - lOttflid; Ohr ml MO-mm h boft M* aid 
- " " - ‘ CLQBMQ flPOT RATES, own* ioMum am j 


(AS) 2.0788 -08039 778-800 28800 28612 


28732 28642 
408041 405000 
68201 58123 
23325 28259 
' 54716 54434 
74111 7.1899 
1209.71 120687 


178841 

03 

178785 

02 



61-407 

0.1 

51817 

-02 

51817 

08 

9.7B84 

-08 

9.7966 

- 0.6 

9814 

-03 

88834 

-as 

8889 

-08 

0664 

03 

28017 

-02 

2801 

08 

24804 

- 08 

1835 

-08 

18263 

-8.7 

1.0263 

-04 

940094 

-32 

241084 

-27 

244204 

-28 

51 >187 

ai 

51817 

-02 

51817 

03 

28089 

02 

28066 

ai 

27837 

08 

108296 

08 

108422 

-08 

108333 

08 

259.186 

-48 

281.131 

-48 

ra 

- 

207290 

-28 

208.154 

-27 

210964 

-28 

118318 

- 22 - 

118623 

-18 

11.7513 

-12 

2.135 

1.0 

21304 

12 

20989 

1.8 

12988 

-417 

12989 

-OA 

12947 

02 

28702 

- 1.0 

20752 

-18 

20968 

-14 

14885 

0.7 

1899 

04 

14660 

08 

28773 

as 

2075 

07 

2073 

08 

118791 

18 

118736 

08 

118246 

08 

150789 

29 

158859 

28 

162384 

38 

28733 

-18 

25776 

- 1.1 

258K 

-08 


1138 

1158 

1168 

818 

1078 

1234 

1048 

788 

1158 

1168 

688 

848 

77.1 

1178 

901 


tM DoMr 8 pot hMm tkuhmtl tom 1HE 


i-t 


CROSS RATES AND DERIVATIVES 


EXCHANGE CROSS RATES . 

May 13 BFr Dftr Ffir DM 


i itMMkd.lv lhaBT. 


NKr 


growing at close to twice its 
potential growth rate, Mr Han- 
nah said a £5 to 3 per cent real 
short rate was probably appro- 
priate - m fjmi n g Fed funds at 
about 5Ji to 6 per cent 

■ The market took Spain’s 
rate cut to be politically moti- 
vated, given that the g ov er n - 
znent is under considerable 
pressure over various corrup- 
tion scandals , and recent infla- 
tion data is unexceptional. 
Also, the cut was made against 
the background of a currency 
that lias been fairly weak 


DOLLAR SPOT rORVVAR 


May 13 Ctaatnu Chang* BkKbKar Da^airid Ona month Thro* months Ona ynar JJ» Moigan 

mid-point on day apraad htfi low - Rata MPA Raw MPA Rata %PA Indax 

Eurepa - 1 

Austria (Sch) It. 7226 -0,065 200-280 11.7745 11.7200 11.731 -08 11.7282 -08 11.7228 08 1038 

EM#un (BFi) 348200 -086 000 - 400 3*4350 3*2600 3*36 -18 3*37 -08 3*235 08 10*4 

Osnmarfc (DM) 68100 -08154 180-200 68405 68016 6826 >1.7 68365 - 1.1 6828 - 0.1 103.7 

FMmI (FM) 64170 -08105 120-220 5.4491 5.4017 S4166 -08 5.419 -0.1 5.4245 -0.1 78.8 

Franco (FFf) 5J170 -00118 168 - 165 5.7960 5.7050 5.7237 .-18 5.7289 -08 5.7048 0 l2 10*0 

Oonany (D) 18SH *08037 666-675 18750 1.6622 1 .G 68 S -18 -1.9685 *4X3 1.6638 08 10*7 

Qraoca (DO 247J00 . *065 600-500 246800 248800 250.95 -102 250825 -188 2878 -102 609 

kafcnd (IQ 1AS46 *08038 637-656 1A709 1^4588 1^4621 2.1 1^(682 1.7 1.4501 18 

Italy (L) 159685 '• -185 520--670 16022S 150180 160046 -3.4 100785 -28 1B2685 -18 701 

LuxomOourg (tB) 3*3200 -086 000-400 3*4350 3*2600 3485 -18 3487 -08 3*236 02 10*4 

Natfwrianda (R) 18711 -08032 706 - 715 18793 1.6684 18722 -0.7 18726 -08 18576 07 1038 

Norway (NKQ 78218 -08173 206-228 78703 72048 72258 -0.7 72263 -02 72018 08 95.1 

Portugal (Eg) 172.100 -025 000-200 17Z200 171250 173235 - 6.6 1758 -7.4. 1808 -48 927 

Spain fro) 137.790 -081 740-840 188840 137800 138215 -3.7 13888 -32 140.765 -22 798 

Strata! (9Ki) 72384 -08119 348-421 7.7917 7.7050 7.7564 -28 7.7794 - 2.1 78434 -18 828 

Switzerland (Sft) 18243 -0806 238-247 14307 14225 14239 03 1.4218 08 14008 1.8 1038 

UK B 18004 *0801 000 - 007 18007 1.4966 14996 0.7 14901 02 149BB 08 082 

Ecu - 1.1564 *08013 561 - 567 1.1591 1.1507 1.155 18 1.1539 Q 8 1.1655 0.1 

SORT - 140076 - - --------- 

Amaricaa 

AiganOna (Paao) 08990 -08004 989 - 990 08990 08968 - - - - 

Brmf (Crt 153*29 -awaw 428 - 430 153420 163428 - - - - _ 

Canada H 1-3787 -08043 784-789 12810 12765 12807 -U 12840 -1.7 1208 -12 832 

Mexico (New Paao) 32300 *0011 250-350 32350 32260 3231 -04 32328 -02 32402 -02 

USA 9) - - 1004 

tai/AMcn 

(AS) 12856 -08038 860-060 12937 18837 12887 -1.1 12814 -1.7 1.402 -12 874 

Hong Kong Ij-SKD 7.7282 *08007 207- 287 7.7267 7.7257 7.72S2 -02 7.7352 -02 7.7599 -04 

bvSa <Rn) 312688 -08012 600 - 726 312726 312650 314338 -22 312688 -2.8 - 

(V) 104.755 *025 730-780 105.100 10*100 10*50 22 10*1 22 101.01 3.0 1462 

§m 28095. -08015 090-100. 26133 28045 22025 32 2287 84 22495 -12 

Now Zetland (NZS) 1.7101 -00062 115 -147' 1.7147 1.7109 1.7143 -08 12188 -12 1.7407 -12 

PhNfppinaa (Poao) 27.1250 - 000 - 500 272500 278000 - - - 

Saud Arabia (Sfl 3.7502 - 500-603 3.7603 3.7500 37509 -4X2 3.7532 -03 3.7047 -04 

angapora (S^ 12638 - 533 - 643 12543 12523 12532 02 12527 02 12518 02 

S Africa (Com) (R) 38468 *08038 445-400 38475 38340 3.6610 -54 3.0878 -4.7 3.7008 -3.7 

S Africa (Ho) (H) *8900 *0896 600-000 .42500 42000 4224 -82 4204 -7.7 - 

South Koran (Won) 806250 *046 000-100 806800 005200 80985 -*S 81285 -32 83186 -3.1 

Taiwan (IS) 202100 -082 000 - 200 262800 202000 262755 -Z3 26270 -22 - - 

Thailand P) 262460 -0806 400-500 252600 262300 2S225 -38 2545 -32 2527 -22 

IfflH nm tor May 13. BMHbr kurnda la it* Detar flpoc «a» mow only the law Ona dvokntf pkora. Fonmd mm m rm ikectty <am*d to ttw mariat 
tM am ImpHad tv cumta Mmt nka. LBC baknd A ECU ■» quoted In US cianney. JJ>. Mor^o nominal Indcoaiaty 12 . Baas nogt 1800-100 

. j t. .<• . ' . •- * 


Pta 


8 KT Sfr 


CS 


Ecu 


Oalflbini 


pFt) 10 1980 16.66 4267 1289 . 4640 5452 21.05 5012 4014 - 2225 *150 1242 4818 2213 305.1 2JS2X 


OKS EUROPEAN CURRENCY UNIT RATES 

May 13 Ecu con. Rata • Change K*/-(rom 94 spread Dtv. 
ratea agalna Ecu on day 


com rate y wari mat inti 


ftaooa 

OMrnwv 


Rortuari 

Spain 


UK 


5264 

10 

8.769 

2557 

1847 

2448 

2870 

1188 

26*0 

2118 

11.67 

2185 

1822 

2115 

1834 

1608 

1327 

■ — ■— ■ 

NWtaia 


0790658 

-0000671 

-222 

588 

6083 

.1140 

IQ - 

3818 

1.194 

2791 

3873 

1284 

3018 

2418 

1384 

2482 

1.168 

2412 

1.740 

1838 

1813 

Nathartondo 

219672 

218857 

*000031 

-188 

*55 

2056 

3811. 

8420 

1 

0409 

9578 

1.122 

4834 

1038 

8285 

*642 

0854 

0400 

0827 

0800 

6281 

0818 

Belgium 

408123 

39.7632 

*00048 

- 1.12 

*30 

5028 

6862 

8878 

2442 

1 

2338 

2741 

1059 

2621 

2018 

1184 

2007 

0977 

2021 

1485 

1534 

1.268 

Qannany 

18496* 

183199 

*080039 

-091 

4.15 

2151 

0409 

0858 

0104 

0843 

100 

0117 

0453 

10L79 

B834 

0485 

0809 

0842 

0888 

0863 

6862 

0854 

Franca 

OS3883 

682595 

*00053 

1-33 

185 

1884 

3485 

3850 

0861 

0365 

8529 

1 

3862 

9186 

7384. 

*136 

0701 

0858 

0737: 

0834 

5587 

0462 

- Danmark 

743879 

786700 

-0001 

182 

187 

4780 

9823 

>812 

2307 

0945 

2206 

2589 

10 

2368 

1907 

-1071 

1871 

0823 

1809 

1884 

14*8 

1.197 

Portugal 

192864 

198896 

-0484 

219 

002 

1094 

2788 

3322 

0869 

0897 

9278 

1887 

*198 

100 ~ 

8005 

4497 

0828 

0387 

0801 

(L5B1 

0084 

0803 

Spain 

15*260 

150203 

*0069 

381 

080 

2481 

*732 

*149 

1810 

0496 

1158 

1858 

5844 

1248 

100 . 

5817 

1884 

0484 

1801 

0720 

7000 

0628 







4*35 

8425 

7888 

■2154 

0682 

'2062 

2418 

9837 

2224 

1788 

10 

1841 

0861 

•L7B2 

1-292 

1368 

1J18 

NONBWM&eStS 





2489 

4877 

4814 

1.170 

0479 

1120 

1814 

5873 

1208 

96.72 

.5433 

1 

0468 

0968 

0702 

7381 

0607 

Qraoca 

26*613 

265857 

*0451 

788 

— *33 

5149 

9.781 

8877 

2501 

1824- 

2394 

2807 

1084 

2588 

208.7 

1181 

2137 

1 

2009 

1800 

157.1 

1898 

Italy 

1793.19 

1848.10 

*038 

3.07 

014 

2*89 

*727 

4-145 

1809 

0495 

. 1157 

1857 

5839 

1248 

9980 

B811 

1833 

0483 

1 

0725 

7683 

0627 

UK 

0786749 

0771541 

-0001853 

-183 

585 


UB 


ECU 


91 3*33 
(Y) 3278 
39i07 


6221 

6226 

7236 


*718 1887 

5480 1582 

6808 1227 

Khmer. 


hn pv MOK Oaeteh lOcmr. Fmft Fane, NanMOhn 

■ MMxnmim smmd dmi26Joooptdm 


0883 1596 

6218 15239 

(X709 1844 

Krtmr 


1.871 7227 172.1 1378 7.740 1-425 0887 1879 1 

1787 0980 1844 1316 7320 1380 68 B 8 13.17 9uB48 

2.163 8851 1982 1592 8245 1248 0.770 1294 1.156 

Franc per 10 ! Emma. Lk> and Pmm pa 100 . 


10*7 
1000. 
m jo 


0866 

8262 

1 


■ WA M MMVIWril— 8 (M 0 flYan- 122 parVW!lOO 


15 

8 

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-11 

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Parcanaiia changea a* fcr Eac a poMve changa taaaa a weak curaray. Dhwganea ehnra «w 
iafp batwei two yeade: ha p erearag* dfraanoe bavirar me asma mwlat ad Ecu caaw new 
tor a cumy, and aw rnnknan pomOUad penantafl* taaton cf As cuiencyh nataa Me asm IB 
EnieenMma- 

(iwwsaj sta»u atolMhn Lfcm Mpaatod toxn BM A* 9 aunw« catcUatod lytha HmncM Ttmoa. 


MONEY MARKET FUNDS 


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Jun 

Ste 

Dee 


Opart 

Latoat 

Changa 

M 01 

Lew 

Eat. wi 

Open hit 


Open 

Latest 

Changa 

Ugh 

Low 

Eat voi 

Opm kit 

05995 

05982 

88001 

08013 

05968 

40371 

11*638 

Jun 

08012 

09557 

-08040 

08625 

09538 

29259 

58822 

05970 

08968 

-00013 

05990 

05900 

899 

6.164 

Sap 

09681 

09626 

-00062 

08675 

08015 

1.273 

5.121 

05990 

08009 

00004 

08009 

05090 

2 

213 

Dac 

08720 

09710 

-08052 

09720 

08703 

8 

969 


I CIS 


231^50 (cents per pound) 


nunc HWUHB (tMM) SFr 123,000 porSFr 


m MSBUWQ EUTUWSpiM) 262^00 per E 


Jun 

Ste 

Doc 


0.7019 

A7030 


07018 

-00002 

07030 

08895 

13,118 

36838 

Jun 

14994 

14990 

-08004 

18000 

14966 

13.143 

42846 

0.7095 

-OQOIO 

07045 

07025 

129 

731 

Sap 

14976. 

, 1498Q 

-00022 

14880 

149*4 

1,273 

. 0290 

07075 


- 

07075 

24 

337 

Poo 

- 

14960 

- 

- 

14960 

6 

39 


Strfce 

Priea 

May 

— CALLS - 
Jun 

Jri 

May 

— PUTS — 
Jui 

Jri 

142S 

784 

788 

742 

- 

- 

015 

1450 

484 

487 

585 

- 

007 

048 

1473 

289 

2.73 ■ 

388 

- 

042 

187 

1800 

Oil 

180 : 

188 

017 

183 

010 

1826 

- 

088. . 

183 

. .281 

OK 

383 

1890 

- 

087 

040 

480 • 

5.13 

5.49 


WORLD INTEREST RATES 


M^r IS 


Balkan 

ymh'ago 


Mtk ao» 

tornrany 
w»ek ago 


BNWk ago 

«wy 

tweak ago 


anakaQO 


wnkapD 

US 

week ago 


weak ago 


MS 

Over 

"»aw 

Ona 

month 

TWBB 

rate 

She 

rrrth* 

Ona 

yaw 

Lamb. 

httar. 

DU 

rata 

Repo 

rata 

6 * 

s« 

6i 

5ft 

54 

740 

*50 

- 

H 

5* 

Sft 


Sfi 

740 

*76 

- 

- m 

5H 

Si 

5ft 

,5ft 

380 

- 

075 

5% 

Sh 

5ft 

6 ft 

Sft 

5.70 

- 

7.7S 

5-50 

580 

583 

*96 

488 

680 

*50 

647 

5 88 

680 

580 

6.12 

687 

680 

580 

847 

H 

e» 

6 

84 

84 

- 

- 

685 

s% 

5ft 

a 

84 

«4 

— 

- 

.680 

7B 

71 

71 

71 

71 

- 

780 

& 10 

m 

7« 

71 

71 

8 

- 

7-50 

887 

888 

5.12 

585 

583 

582 

— 

586 

— 

5.46 

5.12 

5.11 

5.10 

510 

— ' 

686 

- 

4W 

4 

' 4 

4 

4 

0625 

380 

— 

3« 

4 

4 

4 

*4 

6825 

380 

- 

3« 

41 

*1 

5ft 

51 


380 

~ 

31 

-41 

4ft 

5 

Sft 

— 

380 

~ 

21 

2 ft. 

21 

24 

2 i 

- 

1.75 

" 

2 » 

2 ft 

2 ft 

2 ft 

21 

” 

1.75 



■ THRU MONTH SUROMMUC niTURSB (ItfFES* DMIm points of 10094 


■ f LflBOR FT London 


kWarbank Fkkfl 

- ■** 

41 

5ft 

58 

- 

- 


mak ago 

44 

4i 

41 

54 

- 



US Dote-CDa 

- *20 

486 

5.00 

501 

- 

- 

- 

weak ago 

- 480 

440 

4K 

546 

- 

" 


SDR Unkad Da 

3ft 

. 4 

44 

44 

— 

“ 


-waokago 

Sft - 

4 

<4 

44 

- 

w 



BCUUtad Dated mem ndtc Bgi3mBiec «fc 0 tnta Sl fc.l V~r. 
nee. M.eNta ntoa tor Sion tate to tm men n WBtegjg" 

ta IteitraAa era: Bnwn Tn*. Bmk el IWqio. Bu^tWN^.tomtg^. 
ted mm ma atnwn tor flw domeUto Money Hem. US * COe aod SOR urate OepoM Pto- 


to CURRENCY INTEREST RATES 


snort 

term 


7 doya 
notice 


Ona 

month 


Dm 

monte 


Sto 

tnonte 


Ona 

J 2 S. 


» tend 
ijKRma 
k' 

GtMar 

I Banc 

oeaaEaCi 

6 PaaaM 

Bi- 

Amo 

Ufar 

8 r 

Lhm 


8h-SH 

5^-51* 
Si-5i 
5% -51* 
11 > 8 - 11 »i 

V. ■ rA 
«i-4>a 
4V-4 
S> 2 -«* 

B-7h 

2A-!<i 

sh-ah 

weal tor Bia 



ift -n% la’a-tth 
7^-7% ft-7*! 



Jtn 

Sap 

Dec 


Ota 

9488 

9483 

9*79 

9*68 


Jibi . 
Sep 
Dec 
Mar 


«a-«a V* 1 

ft -4 8A-3S 

4*i - 4 4,5 - 4 & 

ft-ft 7^ -ft 
2 A - 2 A tit - z*» 
ft -ah 

US Dofar and Vei* otte* 

PMIOW WmRMR ffwnR P * 1 * 8 teKte Wagaragntd 

Sonprioa Cnanga Hlflh 

9*57 *002 94^ 

0488 tCAS 9*« 

Min 402 ^ 

9*70 *0-02 94.72 

njffB- Sim poktedf 10014 

Wgh 
9580 
9*28 
93.78 



Opm 

Sett price 

Change 

High 

Low 

Eotwol 

Open bit. 

Jtai 

8589 

9587 

-082 

9509 

9586 

17679 

195812 

Sap 

9583 

9583- 

• 

95^4 

9031 

24671- 

188641 

Dac 

8583 

9583 

-081 

9685 

85-22 

17553 

204013 

Ma 

95.13 

95.13 


95.15 

9011 

11023 

196524 

■ tm« laaeira BWiaum bttjmtb wtunu Liooom printa o( 100 ft 


Open 

Seitjprloa 

Change . 

. Writ 

Low 

EsL vd 

Open. bd. 

Jun 

9244 

8242 

-081 

9245 

92.41 

2619 

33971 

Sap 

9280 

9287 

-002 

9283 

92-55 

3011 

40173 

Dac. 

9243 

9243 

-002 

9250 

9241 

2425 

50138 

Mv 

9280 

8288 

-0.03 

8285 

8227 

1485 

12701 

■ IM 

mat Moarra nmo umm 

t WtAMC Ptmi»te» QLBTg SFrlm polnta oflOOft 


Open 

Sett price 

Change 

« 0 h 

Lpw 

Est vol 

Open bit 


9014 

96.13 

• _ 

9014 

6012 

2037 

21180 

Sap 

0010 

98.16 

■081 

86.17 

9016 

967 

11816 

Dac 

0006 

9684 

- 0.02 

8007 

9004 

'170 

8321 

Mar 


9586 

- 0.01 



0 

768 

■ IM 

M MONTH BCtmmiMKOJFFQEculm points of ICON. 



. Ota 

Sett price 

Change . 

Hgh 

Lew 

ESLvCt 

Opop b* 

Jun 

. 9*01. 

9*51 

*081 

9*54 

9*51 

1507 

TI15B 

Sap 

»*B5 

9*07 

*081 • 

9*70 

B4JB 

544 

12009 

Dao 

9489 

9*55 

- 

8*68 

9*55 

692 

7178 

Mr 

9*33 

9*33 

*081 

9*34 

9*33 

500 

2SEB 

■LOTE 

Mum rated on APT 






■ IM 

mmmemmm 

gHOOPUJI 

A 0MM) Sim points ol 10096 




Open 

Latest 

Change. 

Hi* 

Low 

EsLvd 

Open InL 

Jim 

■ 0*92 

9*93 

*082 

85.04 

9*92 

160.854 

422492 

Sap 

9*21 

9422 

* 0.01 

8*35 

9*21 

24%548 

430J44 

Dae 

09.71 

83.72 

* 0.01 

8384 

03L71 

33^423 

41&220 

It UB1HMUKYMI 

LL mum par 100ft 



Jun 

9588 

9587 

*082 

9548 

9037 

4.711 

22,751 

Sep 

9*72 

9*71 

*003 

9478 

9*71 

2828 

10B33 

Due 

9*33 

0*30 

*005 

0*37 

9*30 

148 - 

7868 

AI Open banai 0ft. aa far prariaua day 





■ EUMMUMC OftTOMt JLffT$ DMIm potato of 100ft 



Strike 

Price 

JOB 

— — CALLS 

Sap Dae 

Jun 

PUIS — 
Sep . 

Dee 

•500 

an 

038 

035 

004 

083 

012 

9E2K 

aos 

0.18 

02 Q 

021 

0.10 

099 

•680 

081 

a07 

an 

044 

024 

038 . 




tote . CM 0 HB Put* m Piwiaiu da/a opus tau Cato a»o» pub 
R iAMC OPT1OII0 (UFF^ SP* Im pflkttB Of 100W 


Lew 

9*54 

EsL ual 
10835 

Open be. 
58814 

Strike 

Priea 

Jun 

- CALLS - 
Sap 

Dee 

Jun 

— pure 

Sap 

9*82 

15889 

41.113 

9600 

015 

025 

025 

■ 002 

009 

9*78 

Bjeaa 

37874 

9625 

.003 

aio 

013 

015 

019 

9*68 

28 16 

32.185 

0850 

001 

004 

008 

038 

038 


Dec 
021 . 
034 
082 


Ett. wl HOI. CM 0 PWB 0. tewloua deyli epen ire. Gale *09 Puto 4064 


Ota 

SMtprtoe 

Change 

0*96 

9*96 

-005 

9*28 

9*24 

-OLIO 

0078 

93.75 

-0.10 

0096 

93.53 

•009 


LOW 

EM. ml 

Open tat 

9486 

2 00 

5264 

9*27 

104 

2041 

93.76 

120 

1478 

K 88 

42 

860 


FMu day 1 * «* CM 4CUB8 Pula 12 S 8 B . Pnv. da/a open te . CM *S*93D Putt 481322 


UK INTEREST RATES 


LONDON MONEY RATES 

May 13 Om- . 7 day* 

nlgttt notica 


Ona 


iteoa 


Ona 


near bank Stating 

5i*-3 

4«-*J 

Ni-4ll 

5d-5i 

s& 

5A 

58-68 

Storing CDs 

- 



5lt-6i 

MV 

5A 

6\ - 5*» 

Treasury 80s 

- 

- 

4s"-« 

4fl-4% 




Bank BBa 

- 


4B-4B 

4«-4% 

to 

Si 

- 

Lotte authorty depa. 

4A-44 

4»-4A 

W.-4H 

sa-s i. 

to 

5*. 


Dtscouft Maricat Daps 

6-4 

4tt-4A 

- 




- 

UK clearing bank bate 

taxtog rate A par cant tom Fabrmvy 8. 1994 





Up to 1 

1-3 

3-6 

6-9 

9-12 



month 

month 

months 

months 

monte 

Carts ol Tax dapL £100004 

1h 

4 

3% 

to 

312 


-Onto t*Ttedw.««te £10*000 to ftpo-OapeekatedteMA to* ta**po. 

Ara. tenter rate or dtoooMX *1M08pc. ECCD awd tea 9lg. Btport Hnanea Make up day April ZB. 


T904. Aonwd rale tar period May 21 10B4 to Jun 28, 1994, Seraomes B 1 H OJSOpc. ru toranoe nee tar 
dAfri.lOH- - — “ -- - - — — 




, IBB* l> Apr 26. 1B94, Wterao* TV 8 V B2B8pa. Fkmnca Houte Bate RaM ^ape bon 


IQIFFE) eSOOjQOO printo 01 100 B 6 



Open 

Sort price 

Changa 

High 

Law 

Eat wot 

Open ML 

Jun 

9*69 

9*69 

-am 

9*71 

9*68 

8351 

771B0 

Sap 

9*40 

9447 

*004 

9449 

9*40 

■tesBZ 

90945 

Dao 

9380 

9*02 

*009 

94.03 

9300 

21739 

127383 

Mar 

93-36 

93-52 

*015 

9383 

93J6 

8346 

52800 


Traded an APT. M Open ktemel flee. «ra tor pntUo u e dqr- 


(UFtrE) C600.0CP pokfla M 100% 


Strtk* 

Price 

Jui 

- CALLS - 
Sap 

Dec 

Jun 

— PUTS 

Sap 

Dec 

9450 

021 

021 

014 

002 

024 

062 

9470 

008 

0.10 

008 

012 

038 

081 

9600 

0.01 

004 

003 

032 

057 

1.01 

BIL Wl toH. Cfkf 4400 Puts 485. FYwtout dart open Int.. CM* 172274 Plus 154421 



BASE LENDING RATES 


Adam 8 Company... 025 

Alad Trust Berk ,_^25 

MBtak 5 JO 

•HerayAntecher S25 

Bark ri Bared! MK 

Bno Bteo Vtte«A- &2 

BankotOypnrt 525 

Baric otT Wand 525 

BaricolWfa MS 

Bankri Scotland 526 

425 


Brit Bk of Md East ..-529 
«Onwn5Hgtay&CoUj82S 
CLBrnkNadariand... 525 

CBrenkNA 825 

ClydQGdoto Baric 525 

The CMperafre Berk. 525 

Coms&Cc 525 

Credl Lycrrob 525 

Cyprus Puputor Bank -82S 


Duncan lawrto 525 

BBterBonkUmtad— 625 
RnsntiU&Oen Barit 6 
•FUtart Herring 6 Co -525 

Ckebirit 525 

•Outness Mahon 52S 

HsDb Barit M3 Zurich. 625 

•Homfetw BBrik 525 

HbrWile&Qentm8k.525 

•M Samuel 326 

aHoan&CQ 525 

Hongkong * ShBtftoii 625 

JUtanHudgs Boric 526 
•Leopold JMoph& Sons 62S 

LbydsBank 32S 

Moghnl Baric LM 625 

MUand Baric 525 

'Uajff Banking 6 

NuMMinb icier £25 
•Rh BtoMtt S2S 


*Hc8dugi»Bwh«nteo 
Corpenflon Urntted la no 
tongera*orijodas 
a barring Inadtuton. 8 
Fkyri Bk ofScoland - 525 
•Snrah 8 VMknon gen . 625 
Standard Chariored__ 523 
15B 525 

•UMadekriKaoelt- 525 
UntyT/uet Bank Pfc_ 325 

WaatamThot 623 

W hU u —oyl a kter. — 625 
Yorkshire Bank 625 

• Mamtore ai Brtttth 
Mar cham Banking & 
Securities Houaaa 
AitandaBon 

* kiatMWnfian 


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British Funds, etc 

TrtestaY 13%% 80c 2000/03 - 2125% 


Corporation and County 
Stocks 


landon County 2%% Cons Stt iaz«or ate] 

-£28%(9My84) 

Carp 2%% Slk 1928«or after) - 

l^Kfcty Mstrapofltan Borough CounaTTU Ln 
8* 2019 (Reg int Csrtt)(p/f>) - £21% 
{11MV94) 

Lricwtsr Cky Cornel 7% Ln Stk 2019<Fteg 

WC-JsW^ - EK 

Manehwtnitaiyol)UJS%RKjak20ar- 

£116 

CHtan Met Barash Cound 11.25% Rod 
Stk 2010 - £114 |BMyB4) 

Gritort CC3ty ot) 7% Ln Stk ZOIOCReg M 
CortsHP/P) - £21 A ciiMyW) 


UK Public Boards 


Agriatttuta Mortg^s Corp puc S%% CM3 
S» 93/95- £99% 

M ut iWUlUn Water Mtaroprttsn Water 3% A 


MetropaDtsn Water New Rvar Ca 3% Deb 
Stk-SBO* 


Foreign Stocks,' Bonds, etc- 
(coupons payable in London) 


Abbey Nttoml Trasauy Serve PLC 6%% 
Gtd 80s 2003 (Br $ Var) - 591 91% 
tiiMyfi*) 

Abbey Nations Tkvaaxy Sms PLC 7%% 
Gtd Nte 1088 Pr E Vta) - £98% (1lMy9«) 

Abbey National Traosuy Sem PLC 8% Gtd 
Bds 2003 (Br £ Var) - £94-0825 fllMy&I) 

Acer medvoraud 4% Bds 2om(B«iaooQ) - 
*183*2 184 

AMed-Lyons PUD 10%*. Bds 
1999(Gri3OO0&10aO00) - £1068 «BMy94) 

Aigyd Group PLC 8**% Bda 2000 (Pi£Vbi) - 
£B6% 

Asds Hnanoe Ld io%% Cm Cap 
Bds20QS(Br ESOOO&1 000001 - £108 % 

mm 

A80A Group PLC OHM Bds 
arospigiooMiooQO} ■ ebb 

Aslan DesMopnwnt Bank 11% Bds 2001 (Br 
£1000810000} - Elio’s (9My94) 

Avta Europe Ld ii%% Bds 
1806(Br£1 00081 0000) - £92 (IIMylM) 

Bractays Bar* PUC 84% Nte 2004(BrfyBri- 
outf-EB3% 

Barct8ys Bank RjC 9% Perm Int Bering 
Ccpffial Bd3(Br£ Var)- EBB V 

Beictoyt Bank PUC 9475% Undated Sudani 
Ntl - £98*4 \ 7 

Barings PUC 9%% Pans Siftord Ntm (BrtVnrt- 
OUB) - EBB (10My94) 

Bradford 8 Btnglay BuMng SoeMyColarad 
FUgRtoNta 2003(Heg MtadEIOOO) - EB8 
gg% (QMyO^ 

BWd & Went BtakUng Satiety 10%% 

Siim] Bds 2018 (Br E VlB) - £102% 
(10MyM) 

EMiati Aerospace PLC 10%% Bds 2014 
pteiooooaiooooc) - eios 

BritMi Airways PUC 9*2% Nts 


iBB7(B>eiooo8iaoan - 2103*2 (ioMy«) 
British Airways PLC 10%% Bds 
200B(Brfri 000810000} - £108% 

British Qua Inti Ftrance 8V 10%% OH Bds 
IBBBOr SCI 000810000) - SCI 04% 

@9My94} 

British Gas PUC 12%% Bds 18BS 
(ft£1 000810000 - £1044 (10My94) 

Bnash Qss PIC 7%% Nts 1BB7 (Br £ V(4 - 
£100% (11My94) 

British Gte PLC 10%% Bds 2001 (Br 
£1000,100008100000) - £108% 

Brawl Gas PUC 8**% Bds 2003 (Br £ Va) - 
£95%flOMy04) 

British Qss PLC B%% Bds 2008 {Br EVSi) ■ 
£99% (10My94) 

Brtfcrii Cm PUC 7%% Bds 
2044(6^1000,1 0000,1 000000) • 088 
BritMi Land Co PLC 8475% Bda 2023 (Br £ 
Vai) - £89% |BMy94) 

Bddsh Land Oo PUC 12%% Bds 2018 

Preinooo8iaooaq - £122.1 

British Ta to co u s mntes tion s PUC Zara Cpn 
Bds 2000(B£1000&10000) - £81% 

(1lMy94) 

BritMi Titoco mmunlcaticn a PUC 7%% Bds 
2003 (Br £ Vta) - £90% 

Bwmri Casual Cspttd(Jersay) Ld 9%M Cm 
Cap Bds 2006 Oleg £100Cp - £164*2 5% 
CRH Capital Ld 5%% CmCsp Bds 
2006(BrJ5000) - S11B (10My94) 

CSFB Finsnae BV Gtd Subort Flag Rta Nte 
2003 (Br S \A») - SS5% 96% {10My»4} 
Gates A MIMsss PLC B%% Bds 2003 (» S 
VB) • 587.2 87.45 (10My94) 

CMIs 8 WWsas bit Fharce BV 10%% Gtd 
Bds 2002 »■ ci 000081 ooooo) -eiosa 
6% ASS 

CommsicW Union PUC 10%% Old Bds 2002 
(Br £ Var) - £107 

C una i ram a a l U i Bank of AusWBa B%% Ms 
2000 (Br «A Var) ■ SA100%4 
DaHcN Kangyo Bank Ld 3%* Cm Bds 
2004(8^6000) - $100% 100% p1My94) 
Daly MaB 8 Genera] Trast PLC 8%% Bah 
Bds 2006 (Br£1 00085000) - £157% 8 
(BMyB4) 

DsnwWgggdowi d) 8%% Nts 1998 (Br £ 

Depta Hnanoe N.V. 7%M Gtd Bds 2003 (Br E 
Vsi) -£88A (11MyB4) 

□txona Croup (CspttaQ PUC 8%% Cm GU 
Bds 2002 (8rt80008S00009 - £88% 
flOMyOO 

Dow Chmrtcal Co Zara Cpn Nfei 30/5/ 

B7(BrCi 00081 0000) - £78% (IQMyW) 

EL Du Pont de Narrows & Co 7%% Ms 
I999(8r SVte) ■ S89J BB% 

East Hksands BactricUy PUC 12% Bds 2018 
(» £10000 8 100000) - C12fl,V (BMyW) 

SI Entw u iss Hnsnes PLC 8%% Gtd each 
Bds 2000 (tag £6000) - £103 (1 IMyM) 
Expert-Import Bank ot Japan 6%% Old Bds 
MOO (Br$50K» - *97.07 {IIMyOfl 
Far Eaten Tada Ld 4% Bds 
2008(BrS100aOI - S118 117 117% 117*2 
FWandtBapubOc <ri) 10%% Bds 


1BB7(Br£l000ai000l» - Cl 05%$ 
FWandfftapuMc ol) 10%% Bds 
2008(&£l000si000a - £107% (OMytt*) 
FbtendfRepiAlc oQ 10%% Bds 1898 - 
£106£5%7%(11My94) 

Forts PUC B%% Bds 1B97 pr £500(8 - EBB 
Rtf Bank Ld 1%% cm Bds 2002£b$Saoq - 
$114% 115 (1lMy94) 

GMACAustnIWRnane*) Ld 14%% Nts 11/ 
IQ/95 (Br SA1000810000) - $A108% 108% 
pOMyB4) 

Guaranteed Export Finance Cora PLC 10%% 
Old Bds 2001 (BiEVSn - C108JKB PMyfl^ 
Chinnsas PLC 7%% Nts 1997 (Br £ VSfl - 
08% %(6My94) 

Guksiaas Flnenco BV 12% GM Ms 
189«ffirfp 000810000) - £107(2 
Hottn BuMng Sodaty 8%% Bds 2004 
(BtCIOOO.1 0000.1 00000) - EB4JJ95 

Hdlkn&Mig Sodaty 7%% Nts 1868 (Br£ 
Vdr) - £B7l2 (8My94) 

HWtnc Bdtdng Soctaly 10%% Nts 
T997(Br£100081000t» ■ £103% (BMy94) 
HaBtsx BuhSng Sodoty 11% Subaid Bds 
201 4(R£1 000081 00000) - £111% 2% 
hteinn PUC 9%* Cm Bubted 2006 (Br 
£V*)-£l13{11My8«) 

Hanson Dust PLC 10% Bds 2008 (BTES000) 
- £103 (1lMy84) 

kiraerial ChMKsI Industrin PLC 9%% Bds 
2003©r£1 000810000) - £103% 
bnpertal Cteeffcal Industries PLC 10% Bets 
2003(Brfn 00081 0000) - £104% % 

(10My94) 

hnparial Charmed bidustnas PLC 11%% Bds 
WOStBrfSOOO) - £101% % 0My94) 
Msr-Amsriean Dewdopment Bank 11%% 
Bds 1895Ar£500Q -C1QE24 .29 
IntemsBo na l Bank ler Hec 8 Dew 9%K Bds 
2007 (B£5000) - £104% 

Japan Davelapmsrrt Bank B%% Gtd Bd9 
1899 (Br S Vd) - S87% 97.78 (10My8<] 
Japan Oeadopmenf Bank 7% Gtd Bds 2000 
(Br CVSi) ■ £83% 


Kansd Bsetrta Power Co he 7%% Ms 1098 
(Br £ Ite) - £56/, % f11S4yS4f 
kansd In teiianu i id Airport Co Ld 8%% OKI 
Bds 1BBB(Bi$B00H- $94% 95% (11My04) 
KWnaMn Fkwm 8 GkvMss Pt£ 4% cm 
Bds 2003(Rsg M hUtSIOOQ -577^81444 
aOMyS4) 

Kiiahu BoCtnO Powar Co kw 8% Nts 1097 
03r £ Vd) - £99% {11MVB4) 

Lsdbrato Qraup PIC Sulxxd Crw Bm 

2004(Br£1000860aC| - £135% 

Ladbrake Croup PLC 6%% Bds 2003 (Br E 
Va4-e89J95 82% 

Lsdbraka Group F*nancs(Jarsoj)Ld 0% Cm 
Cap Bds 2005 (BlQOOO&IOOOOQ) - £99 
C11My94) 

Land Sscurttss PUC 8%% Bds 
2007(Bt£l 000810000) - £100% (10My94) 
Land Securities PLC 9%% Cm Bds 
2002(Br£1000) - £102 (9Myfl4) 

Ldid Sscuritlss PUC 8%% Cm Bds 2004 
(BreSOOO&SOOOQ - £110% 

Leeds Permanart Buidkig Sockrty 7%H Nts 
1997(Bi£Vd) - £97% (DMy04) 

Leeds Pdmsnsnt Bdkftig Sockty 7%% Nts 
1998 (Br £ Var) - £97% 

Lssds Ptanwnent BWdbig Sodaty 10%% 
Subort Bds 2018 (Br £V*r) - £105% 

Loads Parmanant Bidding Society 11%W Nts 
1998 ^r £50008100000) - £107 Cm*y94) 
Land (John) PUC 10%% Bds 2014 
(Bl£10000&10000(8 - £109% 

Uoyds Bonk PUC 7%% Subtsd Bds 
2004(Br£Variou4 - £S7fl (1 1My94) 

London SocWoty PLC 8% Bds 2003 (Br £ 
Vd) - £94% (10MyS4) 

MeDonskTs Corpondlon Zara Cpn Nno W 
98 (Br £ Vd) - EB8 [10My94) 

Maries & Spanov Fhanes PLC 7%% Gtd Ms 
1996 (Br 2 Vm) - £974 % 

Microtek b iteuiaflona l Inc 33% Bds 
2001(Br*1000Q) - S1 13 11345 
MurbdpaBty Fbvnca Ld 9%% Gtd Ms 1997 
(Br EVta) - £103% (10My94) 

National Grid Co PLC 7%% Bds 1898 (Br £ 
Var) - £97% (10My94) 

National Power PUC 10%% Bds 2001 (Br 
£100008100000) - £107% 

NsOonsl 8 PioAkU Bldg Society B%% Nts 
1990 (Br £ Vd) - £89 (11My94) 

NaOonsI W dtf mlM ter Bank PLC 11%% Und> 
SubNts £1O00(Cnv to PrflBeg - £106*2 
NadorW W e atifSns tar Bsrft PLC 1 1%% Und- 
SubNts eiOOOfCm to PrflBr - £108% 
NatonarfdB BUUdg Sodoty 8%% Subarcf 
Nts 2018 Or £ Vd) - £89% (10MyO4) 
Nationwide Bi# %ig Society Zero Cpn Ntt 
1908 (Br E Vd) - £89% (1 1 My94) 

New Zealand 9%% Bds 


1995(BrCl 0008.1 0000) ■ E102U niMyflfl 
lonhem Rock BuBdng Sodoty 10%% 


Northern Rock Bttfdng Sodoty 10%% 
Subcrd Bds 2018 (BrEVatf- £104% 
Northumbrian Vtetsr Gtoira PLC 9%U Bds 
2002 (Br E Vd) - £89% (10My94) 

Norway OOngdom eQ 7% Ms 1996 f&r 
S600081 OOOOOI - *101 
Norway fHngdam oQ 8375% Nts 2003 (Br 
$CVd)-SC0O3{11My94) 

Osaka Gas Co Ld 8.128% Bds 2003 (Br E 
Vd) -£94% 

Pacific Becblc Wlra&Cdte Co Ld 3%% Bds 
2001(BM)1000Q-S120% 121 {1*MyS4) 
Pearson PLC 10%% Bds 
2Q0B(Br£1 000610000} - £107% (10My64) 
Pearson Staring Rnsncs PUC 10%% Gtd 
Bds 2002 - £107% 

Pantnatriar & Oriental Stedit Nay CD 4%% 
cm Bds 2oc)2(a£ioocaiaooo) - £134% 
PdMdar & Criantd Steam Nsv Co H%W 
Bds 2014 Or£1 0000810000(8 - £115.175 
(6My»4) 

PcwdGon PUC 8%% Bds 2003 (Br 
£100008100000) - £06% 8*f (11 My94) 

PradantW MvKd BV 9%% Gtd Bds 2007 
(MS00081 00000} - £100*2 % 

RMC CspiW Ld 8%N Ow Cm Bds 2008 (Br 
£5000850000) - £130 (BMy94) 

Rank Organddian PUC 8%% Bds 2000 «Br £ 
Vsfl - EB5A (KHriyflfl 
Redsnd Capital PUC 7%% Cnv Bds 
2002(Br£1 000&10000) - £100 
Radland Starting Fundbig PLC 10%% Old 
Bds 2001 (Br£Vd)-£l08A (10My94) 
Robert Fidring bm Finance Ld B%% Porp 
Subard Gtd Nte (Br £ Vd) - £86*a4 
ftothsdilkd OonOnusOan F%i(CJ)Ld9% Psip 
Subord Gtd Nte (PiCVdkM ■ £83%$ 


Royd Bank of SooBdsl PLC 9%% Undated 
Subard Bds (Br £ Vd) - E83A $My94) 
Royd biausnm Hdgs PLC 9%% Subord 
Bds 2003 (»£ Vd) - £98.1 5$ 

Seinstxjry (JXCtwnncI tstend^Ld 
8%%CmCspBds 2005^- £80008100000) - 
E12S(6My94) 

Sovdn Hd« PLC 11*2% Bds 1999 0r 
£50008100000) • £110% 

SmkbMns D aa Uia m Capital PUC 8%H Gtd 
Nte 1998 (ft- £ Vd) - £99% {10My94) 
SocMe Qendsla 7475% Perp Sutxsd Nts 

(Br£Vd)-£B9*s % 
a w edonOOngdorn ol) 8% Bds iBSflpr 
Y1 000000) - Y104 105 fllMyOfl 
Tarmac Finance frdraay) Ld S%% Cnv Cap 
Bds 2008 (Rag £1000) - £103% 4% 

Tarmac Finance (Jersey) Ld 9%% Cm Cop 
Bds 2008(Br £3000650000) -£103 
(10My94) 

Trie 6 Lyto bit Hn PLC 5%% Gtd Bds 2001 
{Br £5000) - £88% (10My94) 

Tda&Lyia bSRn PUyTstetLyla PLC 8%% 
TSLItFnQdBds 2001^1} W/WtSTALPLC - 
£88% (BMy94) 

Tosco PUC 8%% Bds 2003(B(£Vdtf(RiPc4 - 
EH7U01MVIM) 

Tosco PLC 10%% Bds 2002 (Br EVd) - 

£105% mm 

Teoco CaplW Ld 9% Cm Ora Beta 2000(Fdg 
El) -£117 % % % 

Teaoo CopM Ld 9% Cm Cap Bds 
2005^28000810000) - £115 % 

Thames Wbter PLC 9%% CnvSubcrtBds 
20060rf5000S40000) - £117% (11 My94) 

31 btnnwtorni BV 7%% Gtd Bds 2003 (Br £ 
Vd) - £90*2 % 

Tokyo Badrie Power Oo (no 7%% Nte 1998 
{ft 1 £ Vd) - £98ii U 7 (11My94) 

Tokyo Becblc Powsr Oo he 11% Nte 2001 
{Br £1000,10000 6 100000) • £110.1 
OlMyOfl 

Town Motor Corporation 5425% Bds 1998 
(Br S VwJ - 5M5S 982 {1 !My94) 


Toyota Motor Corporation 0%% Bds 1997{Br 
SVd) - S100 1003 (8My94) 


SVd) - 5100 1003 (MyB4) 

TraWgar House PLC 10%% Bda 
200SPi£100081000a) - £102% (8My94) 


Ttetetasr House PLC 10%% Bds 2014 
(Br£l 00008100000) - £104% A (BMyS4) 

Tmvsury Corporation ol Victoria B%% Gtd 
Bds 2003 (Br £ Vd) - £97% 

LHribig Marina Tianraort C o i pu t sU oirl %% 
Bds 2001 (Reg In Mul $1000) - 897% 98 
PIMyOfl 

Urforar PLC 7%% Nte 1988 (Br E Vd) - 
£97% 

United Kingdom 7%% Bda 2QQ2[BrSVw) . 
597 97^7 (11My94) 

W^umfSA) Group PLC 9% Para BrixM 
Nte (HepNteBrt)- £85*2$ 


Woolwich BuSdkig Sodoty 7% Nte 1899 (Be 
£Vat)-E99A(10My94 
WooMch Bidding Sodoty 11%% 8dxsd 


Ms 2001 - £110% (11My94 
WooMch Bidding Sock*,- 10%% Subora 
Nts 2017 (Br £ Vd) - £101% (10My94) 
Sport Ds ral opndWt Otap 1C 200m 5% Debt 


hstrunant 22/T2/97 - SC9l% 92% (9My94) 
xport Development Cora SSOten S%% Nte 


Sport Doeelopmsnt Cora SSODm S%% Nte 
30AVS8 - *93% 94*2 f10M)*4) 

Spot De ed opme n t Carp Siaam Calami 
Fug Me Nts 6/2/2003 - 593% 94% (BMyB4) 
Hafitsx Btteflng Society Cl 50m 7%% Nte 14 1 


Hafitea Butdtng Society Cl 50m 7%W Nte 14 f 
4/2000 - £96%$ 

Prudentdl Funding C o rpora ti on SCI 50m 7% 
Nte IOB/38 - 5C9445 94.7 (11My94) 
SwedenOOngdcm at) EfiOOm 7%» Nte 3/12/ 
97 - £99% HIMyM 

SwadertfOngdom ri) ESSDn 7% IrtSbulwris 
23/1 2/98 -£95% n (BMy94) 
SwedertfOngtiam ol) E350m 7%% Bds 28/7/ 
2000 - £95% *2 % (11My94) 


Sterling Issues by Overseas 
Borrowers 


Cafane NaOanafe DosAutcroutei 16% GU 
Ln 38(2008 - £15345 
European b iraot mH Bank D% Ln Stk 2001 
(Beg) -Citfi % (0MyS4) 


FT-SE ACTUARIES INDICES 


Tha FT-SE 100. FT-SE Mid 250 and FT-SE Actuaries 350 incfices and the 
FT-SE Actuaries Industry Baskets are cafdjfBfsd by The International 
Stock Exchange of the United Kingdom and RapiABc of Ireland Limited. 
G The International Stock Exchange of tfw United Kingdom and Republic 
of Ireland United 1994. Afl rights reserved. 

The FT-SE Actuaries AH-Share Index is calculated by The Financial 
Timas Limited in conjunction with the Institute of Actuaries and the 
Faculty of Actuaries. 6 The Financial Times Limited 1994. An rights 
reserved. 

The FT-SE 100, FT-SE Mid 250 and FT-SE Actuaries 350 indices, the 
FT-SE Actuaries Industry Baskets aid the FT-SE Actuaries AA-Share 
Index are members of the FT-SE Actuaries Share indkss series which 
sb calculated in accordance with a standard set of ground rules 
estab&hed by Tha RnandaJ Times Limited and London Stock Exchange 
in conjunction with the Institute of Actuaries and the Faculty of Actuaries. 

■FT-SE" and “Footsie' are joint trade mart® and service males of the 
London Stock Exchange and The Financial Times United. 


mm MAV U/MAY 18 1994 



fromutaat* b ^ ow have been taken with consent 

Official List Bid should not be 

relate to those seajritiea not inctodod in the FT Share InformaUon 
^ ** h P***- The prices are those at 

«Sd 'te- 2 - hours °P to 5 P™ on Thursday and 

hut m ascsncSng order which denotes the day's highest and lowest 


LONDON STOCK EXCHANGE: Dealings 




■ f . ^ __*«*" 

% i * 


00 bu »»“ was recorded In Thursday** 

w»ta^t^S. reOT “ *" ’ oor S*™ 

ef ** re 9 lial » d fh* Intemsatand Stock Exchaiwa 

01 ■ - ^ K ^gOoni and the RepubBc of imand Ltd. ■ 

t Bargains at special prices. $ Bargains done the previous day. 


Euttpeon hvosknan t Bank 9*t% Ln Stt 
2009 - £10752 JB SMy94) 

Ewop«n btvsstnwnt Bsik 10%% LnSft 
ax«(n*i T Biio%(BMyM 
EuppsM bNMmarn Bwk 1D%% U 88( 

2004(Br £8000) - £110% f!0My94) 
Eunpeon mvoamwit Bank 11% Ln Stk 
2002(Rsg}-£1l2%n0My94 
bttenwdone Bonk ter Rse & Dsv 114% Lb 
SB c 2003 . £118 % (11My04) 

•Mayes 10%M Ln SHt axJBpstf - £109% 
«9My84) 

Now Zbatand 11%W Stfc2008pa|S-ei19 
(11My94) 

PortugaiPap at) 8% Ui Slk 2O1603r) - £100* 
Swooanpangdom pq B%% Ln SOt 20i«ftefl) 
- £10895 7 

Swacengangosn oQ 8%% Ui SBC 201 d») - 
£108% flOMyW) 

Swwaieq^kton^l3J% Ln Stk 

UtftadMMPDTStatea^^K Ln 58c 
SOOBfin - £141 


Listed Companie^exciuding 

Investment Trusts) 


ASH CteM RnsncagsneyjUl 9*3% Cnv 
Cop Bds 2008 psg Unite 100p). £86 
piMyflfl 

Aberaoen Thisi PUC A Wte to Sufc tor Otd - 
S3 

Aotna Malaysian Growth Rjnd(Cayina>t)LCl 
0)0 5041 - 511 & 11*2 (10My94) 

Abort Rsbar Gravp PUC ADR (10r1) - *848 
(IIMyO^ 

Alwan Group PLC 5% Cun PrT £1 - 50 2 
pIMjpflfl 

AMMan Group PU3 A45p <Naq Clw Ctan Rod 
Pfl 10p -57 f!0My94) 

AOsd-Lyans RjC ADR Clrt) - 8848 {11My94) 

ASad-Lyans PIC 5*2% Cam PIT £1 - SO 

AMatiFLytm PUC 5%% Urn Ln Stk - £82 
(9My84) 

AU* d-L#ans PUD 7%« Una Ui 88c 93MB - 
298% 8% 9 

AOstH^m MrratM 8antosa PU»%% 
GUCmSubardBds2008 RogKMCIOOD - 
£ 110*2 


1 Inc Shs at Cam Stk 53.128 


BAT bKfusiries PLC APR (hi) - 512% 3 
BET PLC ADR {4rt) - *7%f ^25^ 


BET PLC ADR {4.-1) -*7%* 4325* 

BM Group PLC 44p (Watf Cm Cun Rad PH 

aOp-62 

BOC Grate* PUC ADR fill) - *1tt15 10.18 
1041 

BOC Group PLC 12%% Uns LnSOc 2912/17 

- £129*2 7 {llMy»B 

BTP PLC 74p0*M} Cnv Cum Rod Prf lOp - 
218 

B7R PLC ADR (4.1) - 52348 
Bokel lr«tand(Gawnor 6 Co Ol) UrtteNCP 
SOt Sn A £1 5 £9 Uqufctetkxi - £128 
Bank aMrotandfBawmar & Co oQ Unite NCP 
SBt SreA b£16K9 Uquktetian - E1U 

{gMyP*) 

Banrar Hamu Group PLC Old iDp - 150 3 
Barclays PUC ADR (4n) - 53248 
Bwtesys Bank PLC 12% Uns Cop Ui 88c 
2010 -£118*2 CT1My94) 

Bodays Bark PLC 18% Uns Cap Ln Slk 
2002/07 -£138ft 

Barton Group PLC 1146p Cum Rsd Prf 
2005 10p- 114% 6 
8wtngs PUC 8% Cum 2nd Prf £1 - 1Q2 
Ssitigs PLC 9%% Nan-CUm Prt £1 - 122% 

S 

Bsmsta E sp kSSHon Ld Ort R0J1 - 18 
(11My94) 

Ban PLC ADH (2:1) - $164 (9MyS4) 

Boas PLC 10%H Dab Slk 2018 - £113% A 
Baas PLC 7%% Uns Ln S8c 92/97 - EM 
CBM04) 

EMtway PUC 9JS% Cum Rod Prf 201 4 £1 . 
114(11My94) 

BSIRM Carp PLC 7%% Cton Prf £1 - 71 
(9MyD4) 

Begsaan d-y AS “B" Non Vtg Shs NK2J • 
$22.7 

BSmlng ham MkWibss Btedbig Soo 9%% 
Ptetn M Soaring Shs £1000 - £88% 9% % 

Btekwood Hntgo PLC 9% Cum Rad Prf £f 
-35 

Bkxttaisiar Entertafnmont Carp Shs Com 
Stk 50.10 - $38% (BMy94 
Bus CMs Industalos PLC ADR (Iri) - $442 
Bus Crete indusMss PLC 5%% 2nd Dab 88c 
1984/9009 - £74 (BMy94) 

Bradford 6 Btotfay Bidefttg Soctetyn%% 
Psnn M Baaring Shs £10000 - ni3% *2 
Bradftad 6 Btogky Buhang SodtriylSH 
Pawn bit P a win g Shs £10000 -£126% 
BrabnsCr^JUJUXHdgtf PLC 'A* Non. V Ort 
25p - 210 (BMy94) 

ftsnt Waftm Ooup PUC Wte to Sub tor Ort 
-1 2(9My94) 

Branl WWm Grata* PLC 84% Srt NanCum 
Cm Rad 2007/10 £1 -2% (MtftM) 

Bristol Water PUC 8%% Cum bm ftrf £1 • 

111% 2 

Bristol Water HUgs PLC Ort £1 - £10.1 
OMyW 

Brtstd Water Hdgs PLC Non-V^) Ort £1 - 
98B(BMy04) 

Bristol Wbtar Hdgs PUC 8.75% Cun Cm 
Rod Prf 1998 Shs £1 -19Q(BMy04) 

Bristol 8 Wow BuDdng Sodoty 13%% Psrni 
Ini Bearing Shs £1000 - £122 % % % % 3 
*2 %4 

Britannia BuMng Sodoty 13% Rami' bt 
Basting Shs £1000 - £121% 2 % *2 8 
British Airways PLC ADH [Kkl) - 
559228024^ 

British 6 AmsricwiFfcn HMga PLC Ort Slk 
Sp - £9% 9% (1lMy94) 

MW^Amortcsn Tobacco Co Ld 0% 2nd 
Cun Prf Stk £1 -60(8My94) 

British Poboiown Co PLC 8% Cbm lot Prf £1 
• 8900% 1 

Britfe* F’oOdoun Co PLC 8% CUtt 2nd Prf 
£1 - 100 plMy#4) 

EbWteh Stool PLC AOR ftOrt) - 522 
Brttab Su^r PUC 10%% Rad Dab S81 2018 

- £117% (BMy94) 

Broottetonsr Mdgi PLC 44% Pity 8%) 

Cum Prf £1 -69(BMy»q 
Bdrfn(AFjaCoPLCOrt8hs5p-51tt 
BtenwfKPJHdgo PLC B%« 2nd Cum Prf 
£1 -118*2 

ButzJ PLC 7% Cnv Urn Ui »k 93/97 - £109 

10 

Bumeh Castrd PLC 7%% Cun Rad Prf £1 - 
70 

Bumtfi Cssbte PLC 6% Oim Pri £1 - 83 

Buton Group PUC 8% Cm Uns Ln 8tk 1898/ 
2001-E92* 

Butts binlng PLC Wte to SUb tor Ort - 0% 
(11My94) 

Butta MHng PLC 10% (Nsl) Cm Cun Rod 
Prf 1994 10p - 2% 3 (11My94) 

Caflfamta Energy Co Inc Sha of Com Stk 
30.0075 - £11 .280064b 
Cambridge Water Co Cons Ort Slk - £8800 
(10MyB4) 

Cepttsl 6 CounSaa PLC 6%% ItttMtg Cteb 
Slk 2027 - £104£ (BMySq 
Cap's! 6 CounBas PLC 11%% 1w Mtg Dab 
Stt 2021 -£1182 

Carfion Cornmuil M flooa PUC ADR £2:T) - 
»7%% 

Cotton CornrruticaUoRS PLC 7%% Cm 
SUbort Bda 2007(Rsg £50001 - £143% 
Cater AMi Htogs PUC 5% Cum Prf Cl - 49 

catalpS^rK Shs ol Cam Btk *t - 8108% 
CanteK Corporsllan Shs ol Com Stk 3045 - 
52844$ 

C ^ran > L^ a sM^"auBSOOQO 18^ % 

Chepstow Roosoousa PLC Ort 2Sp - es 


Ottuton Corparaden PLC9%% Cun Rsd 
PrfCl -03(BMy94) 

CMOngton Corpondtan PLC 9% Cm Uns Ln 

cgs£2iSS2%2* Cnv Cun Red 
Prf £1 - 72 (10My94) 

C lev eland Place Holdings PLC 12%K Red 
Deb S8c 2008 - £124% (BMyM 

Cleveland Race Hoktinga PUC 4 %k bid Deb 
88t-£45(BMy94) 

Coastal Corporation Shs ol Com 88c 8043 V 
3-530% C11MK94J 

Caste Patau PLC 4%% Uns Ln Sk 2002/07 
• orrpiMys*) 

Coats Paions PLC 8%% Uns Ln Stt 2002/07 
-£80%(11My90 

CDate VlyWta PLC 44% Gin PIT £1 - 57 

ColMrtAJ 6 Co PUC NulV 'A' Ort 20p - 
405 PIMyflA) 

Commactol union PLC B%% Clan bid Prf 

El - 104% % 5 % % at 

CommnH Urton PLC B%% Cum Ind Rf 

Cl -112% 8% 

Co-Openuive Bank PLC 825% Nen-Cum bid 
Rtf £1 -111% 

Cooper [Frederic# PLC &5p (No© Cm Red 


Cun Pig ftf lOp - 95 3 100 P0My94) 
Coubulds PLC 5%% Uns Ln Stk 94/OB - 


£90 plMy94) 

COtatsMdS PLC 7%% Una Ln SDr 200CW» - 


E92 (9My9<) 

Ooute PUC 84% 0>M) Cum Prf £1 - 78 
Coventry Bitfdbig Socteiy 12%% Perm Mar- 
0«t B««te0 Shs £1000 - ei 13% % 4*2 
CndBbrtamaOonal PLC8tf%Cumnt£] - 
87p«y94) 

Dfliy Mgl 6 General Trust PLC Ora 50p - 
£134 

Delgety PLC 445% Cum Prf £1 - 74 (BMy9q 
Ds Bam ConoaDdatod Mnes La 40% Cum 
PrfRBpr)(Cpr1TtO-325(lOMyW) 

Da Basra CcnsdktatBd Mbtn Ld 8% Cun 
2nd Prf R1 - 15 (HMyftR 
Debenhams PLC 8%% aid DM SBC 9090 - 


De U eiB iw ns PLC 7%% Una Ln Sdt 2002/07 - 


Delta PLC 10%% Deb Stk 95/Bfl - £102% 
f11My94) 


Danom PUC &2fi% Ctm Cnv R«<l PH £1 - 
120 

Dewtest Group tV) 9.75% Cun Prf El - 


115 (My94) 

Dewhunt PLC OW 10P - 83% 5 
DonMM Energy PUC Ord Sp - 11 (BMyM) 
□over Corp Com Stk 51 -£38% (BMy94) 
□urtop RuitBdona Ld 5% Cum Prf £1 ■ 70 
pm 

B Oro MMngBEsptoaacii CO PLC Ort lOp - 


! 82Sp(Nat} Cm Cun Rod Prf 6p 


Carp PLC 9%% lit MR) 
D2-£«4(BMyM 


B(FhtfSK10-SK344 3 3 7 
Bun DbneySAA. Shi FRIO (MpCrttey 
FteoeW 330 8 40 40 
Euo Dlsnay 8JXA. 9s FRIO p) - FR2944 
.1 A 4K»31 47 3047 47 (llMy94) 
Etrotunml PLCCurotumelSAUntts 


t Ca PLC Ort Stk 5p - : 


BuMng Society 1 1%1 
Shs £10000 . £192% 


ASad-Lyons Rnsnctal Ssrrfces PLC6%% Gtd 
Cm SUiart Bds 2006(Br £ VW) - £109% 


Antftewa Syksa Group PLC Cm Prf 60p - 55 
8(BMy94) 

Anglian Wbisr PLC 5%% feidax-LMisd LnStk 
2008(8.1024%) - £138% (IlMyBfi 
Anglo Anuriesn Im Tst Ld OK CUn Prf R2 - 
5«SMyfl4) 

Angkrvarf Ld N Ort RtLOOOl - £17 (10My94) 
Attaraods PUC AOR flel) - 59% 

Attnoods (Htanr*) NV »*» Gtd Red Cnv Prf 
Sp - 96 piMy94) 

Automated SoeuflyfHdo*) PLC 6% Cm Cun 
Rad Prf £1 -801 


First National Finance Carp PLC 7% Cm 
Cum FUd Prf Cl - 148 (IIMyfli) 

Room PLC AOR (4ri) - 8841 
Haons PLC S%% Uns Ln Stk 2004/09 - 
£72% 

Fohos Guta* PLC Ort Sp - 49 l10My94) 
Forts PUC 9.1% Una La S8( 95/2000 -£100 
f11My04) 

Fartnan 8 Mason PUC Ora 8tk £1 -EB2 
Friend* Hotels PLC 5% Cm Cum Rod Prf £1 
-122% (0My94) 

GKN PLC ADR (Irf) - 59% 

ON (best Nude Ld Sha DK100 - 0K520 14 
C0My»9 , _ 

GR(rtdgs) PLC 10%% 2nd Cun Pit £1 -90 
(itMyao 

GLTAda(Sterilng)FUnd Ld Ptg Rod Prf Ip - 
E24J5B (11My94) 

G.T. CM# Growth Fund Ld Ord 3041 - 
£27%*27%* 

General Accident PUC 7%% Cum bid Prf CT 
- 97% 6% % % «%t 

Gerund Acddvn PLC B\% Cun hid Pit £1 
- 113% % 4 % 

General Aoc RroHJte Awe Corp PLC7%% 
Um La Stk 92/97 -£99% (8My9*) 

General Bectric Co PLC AOR (1:1} - *4% 
GBrbe 6 Dandy PLC Ort lOp - 103 ClIMyW) 
GUxo Group Ld 6%% URs Ln Stk 53/95 SOp 
-49(I1My94) 

OUan Graua Ld 7%% Uns Ln Slk 85/95 SOp 
-47% 

Gtymmd tra u i io i l orul PIC 10%% Una Ln Slk 
94/99 - £97 

Gmnptan Hdgs PUC 7% Cun Prf £1 -68 
(BMyB4) 

Quid Mstropoatsn n£ 6% Cum Prf £1 • 3S 
Grand Matropoflten PUC 8%% Cun Pit £1 - 
68 

imra Group PUC 8% Cun Prf £1 - 106 
(1lMy94) 

Oeenala Group PLC 11%% Dab SIK 2014 - 
£121% 

Gramstts Group PLC S%% bid Um Ln Stk - 
ECO (BMy94) 

GrosraWs Eboup PLC 7% Cm Stabort Bds 
2003 PstB - £114% 48 5% % 6 
Gutrmosa PLC ADR (Sri) - S»% 44 
Guhmass FUgr* Ind Acc Fund Ld Ptg Rad Prf 
58001 (Managsd Cursncy Fej - £56417 
HSBC Hdgs PUC Ort 3H10 [Hong Kong 
Rod - SH45% 83.149298 44186 4.54435 
452841 % 44* 443 % JB7B06 4 J906341 
48165.139775 4125 % % 457 A % 
HS8C Hdgs PIC 1149% SUDort Bds 2002 
(Reg) - £106 10 % 1 

HSQC Hdgi PLC 1 14B% SUbort Bds 2002 
(Br EVai) - £111 % (10My94) 

Hafitsx Staking SocMy 8%% Psnn tat Bear- 
ing She £50000 - £89% 4 (11My94) 

Hrttsx Buldng Sodoty 12% Perm Int Baar- 
tag She £1 (Reg ESdOOg) - £118% 4 
Hrtdn Hoktttgs PLC Ort 5p - 58 80 2 
Hrt EngbweringfffldgiriPLC 545% Cum Prf 
£1 -M(9My94) 

Hwnmarson PLC Ort 2Sp - 380 1 3 5 6 7 8 
SC 3 

Hartya & Havens PUC Ort 5p - 249 50 
HaTOra he Sha of Com Stk 5050- 
8334008^ 

HsMttim Brewery PLC 11%% Cun Prf £1 - 
140(OMyfl4) 

Heroties Inc Shs of Com S8t of MV - $20% 
(ilMyW) 

Hduui htan u tlot ul PLC 8%% Uns Ln Stk 
88/94 - £99 (1Udy94) 

Hi 8 Smith Hdgs PUC 14% 1st Mtg Dab Sdt 
2000/03 - £118 (T0My94) 

HoyteLkMOpb) 6 Son Ld 5% Cum Prf SOc Cl 
-40 niMyW) 

IAWS Group PLC 8% Stand Cnv Uns LA 
Ms b£1 - &100(9My84) 

IS Hhulaysn Fuid NV Ort FULOl -515% 
16% 

Iceland Group PLC Cnv Cun Red Pt120p- 
125 44 88 % 7 7 

Inch Nraneth Kdsng Rubber PLC lOp - 

£11-02 |BMy94) 

InduraW Cortroi Sonrioav Op PLCOrd lOp - 
150508 

Mah Ufa PLC Ort bCD.10 - 248 2.1 p202 
Jwilna Matheaon Hdgs Ld Old 8045 (Hong 
Kang RsgtateO - 8446 SH5442B8 5.1Z79S 
431 485775 .784743 .7848 42405 043 
7.1 

Judns Stratagio Hdgs Ld Ort 8005 Ptong 
Kona RS0VW) - SH27.683203 41 491971 
8408 417838 477433 .13 41805480877 
401484 41644 41886 
Jaisuan Graira Ctoansra PLC 74p (NW) Cm 
Cum Red MlOp- 197 7 72 
Johnson Group Ctaaner* PLC 9% Cum Prf 
£1-93 

Jahmu^MstlhBy PLC 8% Cm Cun M£1 - 
970 

Janas4troudp6dgs) PLC 10% Cum Prf £1 - 
130 

JitpHer lyndsl Int Rmd Ld DteblbuOan 
Sharia Ip-470# 


Karathg Motor Grow PLC 44% (Bitty 7%) 
Cum Prf £1 - 74 8% (BMy94) 

Ntadtafiu PLC ADR (2ri) - *17% 

Korea Europe Find Ld ShiODR to ft) 50.10 
(Cpn 0) - 84050 

Kwamar A4. Flea A Ste MC1240 - 
NK344JM fllllvM 

Ladbrake Group PLC ADR (Irf) * 8242 246 
247 

LandSacurMae RU7fl% let Mlg Deb Stk OS' 
2001 - £102% % 

Loads 6 Hrraadt BuMng Society 18%% 
Perm hi Soaring Sha £1000 - £122% 3% 

% 

Leads P erm a nen t SuNbig Soctaiy 13%% 
F^m bit Bearing £00000 -£132% % % 
LewIRJ Uui i Pw tnaahto PUC 5% Cun Prf SBt 
£1 - 53 8 (11My94) 

LurSurfce PIC 8%% Cum PrfCl -68 
WMyOfl 

Lombard North Central PLC 5% Cum 2nd Prf 
£1 -54(lOMy9fl 

London htom a 8on a l Goup PLC ADH pri) - 

ytn {QMy04J 

Londut SeaurtOas PLC Old Ip - 8 
Loraho nc ADR (Iri) - *240 
Lootosra PLC 8% Cm Cum Rod Prf Cl -132 
Law(Wm) 6 Co PLC 8.75% Cum Cm Rsd nr 
£1 -0R{11My94) 

LwHBobort R) 8 Co PLC 874% (NsQ Cm 
Claw Red Prf 1 0p - 30 5 
Lynun PLC 10%% 1st Mtg Dra Stk 2017- 


£108% (10My94) 

MB=C PLC 10%% 1st Mtg Dob Stk 2024 • 
£116% 475 

bB*C PLC 8% Una Ln 98t 20009)0 - £91% 
2 % 3 

McCarthy & Stone PLC 8.75% Cum Rod Prf 
2003 £1 - 92 (11My94) 

McCarthy & Stone PLC 7% Cm Uns Ln SOt 
99/04 - £73 

Motnamay Prapantos PLC "A* Ort bail .10 - 
BUSS 

Montfarti Oriental b rtemsUu u tt Ld Ort 5045 
9-tong Kcng Rej* - SHI 045974 >14408 45 
G1My94) 

Ma n g a neea Bronze Hdgs PLC 6%% Cun 
Prf £1 - 78 

Marta 8 Spurcsr PLC ADR (Sri) - 839.15 
Modem PLC ADR (4ri) - S8%* 4* 
Merch an t Real awp PLC 8%% Cnv Uns 
Ln 88( 99/04 - £74 (1QMy94) 

Meroury tntema fl orvl tnv TVusI Ld Fig Rad 
Prf Ip (Rawave Fmd) - £494338 
Money Docks 8 Harbour Co 0%% Red Deb 
Stk 96/99 - £90 (10My94) 

Mkttmd Bank PLC 14% Sutxsd Una Ln S8c 
2002/07 -£124 

Mtel Cupaettai Ccsn Shi of NPV - *341 

<BMy94) 

MucMow(/l& JJGroup PLC 7% Cun Prf £1 - 
75 

NFC PLC 7%% CJw Bds 2007090(0 - £109% 
AMC Group PLC WBmmts to sub for Shs - 

99 ftOMy94) 

NMC CMup PLC 7.75p (Naf) CunvRed Cm 
FVf1(to-112 3%t10My94) 

NUtonel Medtosl Enterprises hw Shs of Com 
S8C SUB -81 84794* 

National Power PLC ADR (ICfcl) - 585 
fllMy94) 

Neflonrf W e it ntt n uer Bar* PIC 7% Cun Prf 
£1 -88 


Subord Una La Slk 2Q04 - £121% 
fliMy®*) 


PUC 12%% 
-ei2i%% 


Rsawm Co Bara 4% Com 
Deb StkOnt GU by CPJ - £42 (lOMytW) 
Newcastle Btedng Sodoty 12%% Punt 
Interest Bearing 8hs Cl 000 - £11S% % 
Neway Grata* Ld 5% Cun Prf £i-5S 
Om*m 

Nows Mamattaul PLC 44% (pmly 7%) 1st 
Cun Prf £1 - 70 (IIMytM) 

North Houstng Assoddlon Ld Zara Cpn Ln 
38(8019 -337% 82% (8My04) 

North of England BuUg SocMy 12%% 
Perm Ira Boring (£icS* - £117% % % 
Ontario & Quebeo Rtftaay Co 5% Pum Dab 
Stttfnt Old by CJ*J - £52 (BMy9fl 
P & 0 Property HddJngs 14 7%% let Mtg 
Deb Stk 07/2002 - £88 BMySfl 
Pedflc Got & Beene Co Shs ol Oom Stk *5 

- 523% (IlMyEM) 

Paridand Grata* PLC Ort 2Sp - 220 
Maroon Zochorta PLC 10% Cum FW £1 - 
l18(BUy94) 

Peal Hdgs PLC 648% (Nat) Cm Cun Non. 

VpWfl ■ lIBfllMySO) 

Pwttnwlar 8 Oriental Stem Ntnr Co 5% Cun 
pweat-ESi 

Peridns Foatte PLC 8p(N«) Cun Cnv Red Prf 
IDp -85 

Psnufru SA Ort Shs NPV (Br h Denom 14 
ft IQ - BF1 068442* 42* 40* 75* 


PEX Group PLC 34% Cun PM £1 -2* 
Ptarttoroofe Qraup hjC 6J5% Cm Prf 91/ 
2001 IDp- 39(104)94) 

MgVtauim Ptabsm Let Ort RtLOZS • 34S 
Powta Dtabyn PLC 4%% CUn Prf 5Qp - 24 
PiUyW) 

Powert3« PLC ADR (Ittt) - 5987 
Prorata Heettta Group PLC Ort Ip ■ 2 
Ptomk Hddtags F8C 105% Cum Prf £1 - 
125 

PiuderttM Curancy Fund Lri Ptg 'A* Rets Prf 

Ip - 212% (1QMJ04) 

REJUHdgs PLC 9% Cum Prf £1 ■ 85 5 

fWLflSi% Um Ln Stk 2004/09 - £48 
RPH Ld 9% Uns Ln Slk 93(2004 - £86 
RTZ Carponam PIC 3325% *A’ Cun M 
£1-52 flOMyfl*) 

R1Z Corporadon PLC 34% ‘B 1 Cun M 
£1(Reg)-S5 

ftaerf Sectrodca PLC ADR (2S1) - S7 48 
<10494 

Rank Organtaeton PLC ADR *£1) - S1Z3 
fliMysq 

Racttl 8 Cohnsn PLC 5% Cum M £1 >57 

NK4yg<R 

Rerxttd PLC 7%% 2nd Don SIK 8B/9T - EBB 
Ratal Corporation PLC 445% (Fatty 6%%) 
Cun 3rd Prf£l -6S^MyB4) 

RotrlncanefCamStkSl -55%^ 

Royrf Bank of Seofirad Group PLC 11% 

Cum Prf £1 - 115(11*494) 

Rayrf Intnnee Hortkigs PLC 7%% Cm 
Subord Bds 2007 0r £1ta) - EMB% 

aOMy9« 

Rugby Grouo PLC 3% Una Ln StkEGHB - 
£88 (10My94) 

BaakN 8 SartcW Co RJC ADR Bri) - 58 
SBatcM ft SoatcM Co PLC 9% CW Uhs Ln 
Stk 2915- £77 (9My9<) 

Sdnsbuy(4 PLC ADR (Irf) - 5544 (HMySR 
Sam PLC B%% cun Rad Prf 2001/05 Cl - 
104% 

8dm PIC 5%% Cm Cun Rod M 2006/11 
£1-91 (BMyS4) 

Schroder JW3WWM WUront Band Lri B3R (ki 
Oonora 100 9w ft 10000 Shat - 55 (BMyBR 
Scontai Hydro-eacuto PLC Ora SOp - 353 % 
%4%S%8.18% 7 8.189 
Seatdih Ufa tausance Co 7%% Uns La SBc 
97/2002 - £88% (BMy94) 

Scotura & Newcrosae PIC 7% Cm Cum Prf 
£1 -243 


Toace PLC 4% U» Deep Due La Stk 2000 - 
£83%(1lMy94) 

11H Davatounsra cotrad Fund Ld Cbd *0.10 

• sio io%n»»yM 

Tbat DrnfOEmud Cvlttl Fu*tf Ld Wte To 
&*> For Ort - *1% 1% fWJMyQfl 
Tbtarad bVMubOMt Fund L8 P« Shs *041 
SOftUto&)-SZ7(MMl|0<) 
mom M PLC «h 0:11 - *iTa cmw 
Toiorno Grey 4 Bruce W"»/ Co *% let 
Mte Bds(2S83 (Con 221] - £47 (10My94} 
Tidtagav Heura PLC 6% UM in » 94A9 - 
£90 <814*94 

Trobdgar Mura PLC 9%% lb» Ln S8» 2000/ 
06 - £96 p!My94 _ 

TcdteOM- Hocus PIC T9%% Uns U Ste 
2OOWK-E1O01(11M)04 
TkmBtado Hddngs PLC B 6% Cnv Prf Cl 
-96 

TtaBsput Davotapment Group PIC 12%% 
Uns La Stk 2000 - £118 (l TMy94 
Tdrfy bira tmu u /HMg>PLC5% cum Pit 
Stk Cl -53(BUya4 
LMtUte PUS AOR flri) - 5849 
UHgsro PUS 445% cum nr £1 - 79 
(MM)94 

Urttgass PtC5% UbsIa Sdt 91/98 - £94 
fiiMys4) 


Eurapsra Atosb Trad NV » R ' ICP" ia ’ 

uyiSSafii - 1 « pimjm . w 

Rmtejry SmsBar Co's Trad PLC *ra* D*v Prf 

rSki tm Tnist R.C 35% Cu«* 

Fk^btaonShi Im Twt PuC ■*%•* P« 
OebS8i-E47l!0»4« 

GanmoraBi«*mc»OmTittPlC>*oDrrf- 

dsnd Prf 10p - 105% (*1My94)^ _ , 

CVaronqra Sharod Eddty T>us!PLC Oeusd 
Ort Inc wp - BoaDtaa \s 
Gteimera Vttbie tewuenena PlC w, 44% 

DM Sk 1*95 -£102% 

"S 

MtSu i m se t Bun tt plc ora d -410 

iMasSta Hwstms m 
Prf (Up UJL Aonra Fund ■ £I3.« 1193 

tmdtad lu ra atm an t TniU LOjhgRed 
Prf 0.1P UK UOddAsaMFund-flOt 

■TJBSSBXrffAe 


Ita^e PlC 8%% Uhs Ln Slk 91AM - £94 
Urttpoup PLC 7%% Cun Cm Rsd W Cl - 
B8(1Uff*4 

Utt iu RjC ADR (*ri) ■ 583%4 
Udon tatomadorta Co PLC 3% Cun Prf Slk 
£1 -80ai*%94 

UWui bttranraorta Cb PLC 7% Cum Prf Slk 
£1 -88(10My94 

Uttsys Cora Com S8t SOOi - *10% 

(11UK94 

tMdltatdtai llrfrn I it ‘ — 
miS 0.15 fiOMyM) 

u*ty Cotta PLC Wterronro nrab tor Ort- 

VteK Group PUC 10JS% Deb Sdt 2019 - 
£118% (UMy94) 

Vlefcers PLC 5% PrtJNon-CuitfSk £1-45 
(KMygq 

VWras PLC SH CUnOtot Froe To 30p)Pif 
Stk £l - 68 (9MySJ) 

voctefme Group RC ADRDOri) - 578% % 9 
% % j4% % 44 

Watarfnramea} PLC Ort 5p - 31 (lOMy94 
WSabug (844 temp PUS 7%% Cun Prf Ci 
- 98 8 (TOMyM) 

Watnro taJbt friBe) HC 8%% CUn Red Brf 
2000 £1 -1048 

VMoame PlC ADR Hri) - 58% % 

•Ms Fugn 8 Cuqputy She of Oun Stk *5 - 

*148%au%94 

Wuntttsy PLC eUNegem CUn Red PM 1BH 
£1 -42% 3 45 5 % % 

WHtoroed PLC 7% 3rt Cum Prf Stk El - 75 
Wtutveed PLC 7%% UM U> Stk 95/99 - 
£92% (11M794 

Wtetbraad PLC 7%% Uu Ln Sdt 98/2000 - 
£98% 

WMtoraul nC 10*]% Une Ln Stk 2000AH - 
£10C«My94 

WhbKraBPUC81%CamAf£1 -58 60 
(ilHy94 

WSdney PLC 8.78% Cnv Cum Fted 2nd Prf 
2000 £1 -82* 

IMBuni Hdgs RJC 10%% Cum Prf £1 - 123 
4riflMy94 

VWa Catroan Group PLC ADR (5:1) - £17% 
17% 

WtaartCaramy Mdm PLC 10%% Cum 2nd 
Prf £) - 128 |BMy94 
Xerox Cara Cam Sdt SI -Sa9%(9My94 
Dark Watwwuta PLC Ort lRB - 300 (8My94 
Yoriatsra-Tyne Tees TV HUgs PUS Wte to 
SUB tar Ort -132% 3 
YUa Cuu 8 Co PLC 11*2% Cum Red Prf 
1998/2003 £1 - 116(liMy94 
2ra*te CatsdkUted Copper lOrm Ld'B* 
Ord KiO- 2304* 


Scotdeti Power PLC Ort 50p - *74 % 5 5 % 
87 7.19% % 88 %9%BO 801 %23 
Seers PLC 44% {Bitty 7%) 'A* Cum Prf El - 
T* (1TMy94J 

Seen PLC 7%% Uns LA Stk 92/B7 • £96% 
pOMy94 

Seasuar Group PLC 44Mfc Cun Pig Pit El 
-EieapMygq 

Severn Rhrar Grosstoo PLC 6% tadOK-Uahed 
ora Stic 2012 (5344%)- £119 niUySR 
She! TksmtxxtGTmSngCo PLC Ord She {*) 
25p (Cpn rfH) - 7439 
Shett TramportSimangDo PLC 5%% 1st 
PfflCuntfEI - 81 (lU4y94 
Stttsld Group PLC Otd 5p- 16% 

Shield Group PLC 544% (NSQ Cm Cun RkI 
PrfCl -29 3Qt%t1* 

Shaprtte Bnance (UK) PLC 7475p(Nel) Cum 
Red Prf Shs 2009 - 93% (IIMySR 
Skflaw Group PLC 7%% Uns LnStk 2003/00 
-£84tl0My94 

Signet Group PLC ADR (K1) - *147 
Sknan Engineering PUC 44% pntty 8%) 

Cun Prf £1 - 53 4 ff lMy94 
Sknan Enttfneertrn PLC 7 J5% Cun Red Prf 
92/97 £1- 90 (i1MyiS4) 

SMeB (WBsn* PLC S42SK Cm Cun Red 
PrfCl- 57% (9My94 
SMpton BuMng SocMy 12%% Pum tat 
Beering Sha EiOOQ -£117 % 8 
SSngrayPUCJPLC Ord 2Sp - 320 (10My94 
SrrttBi New Cam PLC 'A* Wunms to sub 
lor Otd -£145$ 

Smtth (W.HJ Group PLC *8* Od lOp - 120 

SntilhKBm Beechern PLC ADR (Sri) - 
*30488883 

SnrithKIbn Basefuoi PLC/SmtthtGns AOR 
P=f) - £27449 % 47 % % 49 495 % 

Steg Bsittbira Hdgs PLC 11% Cum Prf £1 • 
io5fliMy94) 

tented Charterod PLC 12%% Subord Uns 
Ln Stk 2002/07 - £115 
Stmert Zlgalmala PLC Ort Slk 20p - C7JST 
Sterling Industries PLC 1st Prf(5%% CurtEI 
. -87 


iJpndSelaef tmmonsnt That Ld PW Red 

Pit aip Japui mow Furt - 8524 54 

uKsUemteMftrntaPl^ 

MaSraiSertlSSSSSteOB^ Tat PLCWte to 

■yh far M ■ 4i 5 

Now Throgmorton TruattHKS PLC Zero Cpn 
Deb Stk 1998 - £89*2 
Northern Indust Imprav Tiuitt PLC Od £1 - 
520 

Pmtbm Fn neh tmwftnfnr Trurt W.CSij» "A* 
wanuos to sub lor Od - 39 
Paribas French ( u .e ec rwrtt Trust FLCSero 
•B* wsnana to sub fa Ort - 30 1 1 % 

Ptemttpsn bit Cspttai Trust RC C Sha G2 - 

StxMra GaMHi bar Trust PLC 9%% Dab Btk 
2020- £107% (T1My84) 

Saras Hgh-YMOnfl SnrfrCb'e TalWte to 
Sub tor Ort - 73 (9My94 
Sonera bKoatnunt Triut PLC Revtsed Vtar- 
nnu to sra tor Ort - 7 
TR CKy of Lcndon Trust PLC 10%% Deb Stk 
2020 - £111% (BMy Gfl „ . 

wipnore Property btvesbnud Tst PLCWn to 
Starter Ort- 48 |9My®4) 

Wlten Iniisstmaair Co PUC 8%% Dsb Stk 
2016 - *95% (9My94) 


USM Appendix 


BLP Group PLC Ort 5(Jp - 52.15 (8My94) 
□atom Group PLC Ort *£0-25 - KD.17 
(1DMy94) 

FBD HOatogs RjC Ort HC040 - £145 
GUM Mew RC Ort 2Sp - 415 
MUtend & Seotilah ReeuuoM PLC Ort lap - 
3% 4% 

Total Systems PLC Ort 5p - 31 


Rule 535(2) 


investment Trusts 


SwfcsUahrt 8 Sam Ld 84% Cun Prf Cl - 
78%9(BMy94) 

Symands Engbieartng PLC Ort 5p - 29 30% 
niMyoq 

T8B Group PLC 10%% Subart Ln SHc 2008 

-£10B%6 

TT Group PLC 10478% Cm Cum Rsd Prf 
Shs£1 1997 . 291 (9My94) 

Tate 8 Lyte RC ADR (4ri) - 520*2 (BMy94) 
Ttas ft Lrfe PLC 8% U« tn Stk 200808 - 

£89 fl1My04) 

Taytar Waodraw PLC 9%% 1st Mtg Dra SOc 
2014 - £100% (10My94) 

Taaea PLC ADR (in) - 5846 (BMy94) 


Abtrutt New Own Im Trust PLC C Su SOp 
- 2«2 

Atttott Trust PLC S% Prf Stk - C63 (BMy9<q 
An^o & Overset! That PLC 4%% Cum ftf 
Sdt - £40% (1 1My94) 

Btfe Giflart Juron Tnut PLC Wte to Star 
Ort Sha -221 4% 5 St 
Bolis GMam Sten Mppan PLC Warrants to 
aublarOrt - 734 

Buttura ku rsot m ant Trust PLC 10%% Dsb 
Sfc 20T8 - CJW (HMy94) 
nsmniintml bwessuanti TVust PLC Wts to 
sub tar Ord - 34 flOMyBR 
British Aaaats Tnat PLC Eqtadee Indm UL3 
2005lOp-155 7(10My»fl 
British Engst* Sac 5 General That 10%% 
Deb Sdt 2011 • £110% (0My94) 

British kwesbiirat Tnut RJC 11.125%. 

Secured Deb Slk 3012 - £119% (10My94) 
Ctanem Karat Bnerabig Growth FundShs 
510 (Rag Lux) -513% 13.7 1345fl1My94) 
Ouue bMaanM Tnut PLC Wte la Sub- 
scribe fa 1 toe 8 1 Cap - 81 (t1My94) 
Duutttn Income Growth tnv Tst PLC 114% 
Dab Stk 2016 - £122% (BMy94) 


Coe* PLC825% (Bitty 74%) Cun Prf £1 - 
£0.4 (10My94) 

Dart Vkiey Light Ralway Ld Ort £1 • £2% 
flOMy*4 

□swoon Hdgs PUC Ord 10p -£44(11 MyBJ) 

Fawast a ora csstC up ora d ow PLC OW5p- 

nus^ 

Gsncte HobtetM PLC Ort ip - £007 

Graerator Hotels PUC Ort lOp - £02 
(BMy94) 

Gusmsey Gas UflM Oo Ld Ort 10p - £048 
070705 


Tbta advercbemenz ta Isaued in compUanoe with die 
Kingdom end du RqaiUlc of lidand Limited (“tfae L 


of dro Intcraadona] Stock Exchange of die United 


Exchange**). It does noc conatituce an invhsdon tn the 
teen made to the London Stock Exchange for the whole 


will commence on 17 May 1994. 


n has been made to the London Stock Exchange for the whole 
ropeny"), issued and to be leaned pursuant to the Placing and 
wyp-fiwt ffrar ii nk ii|p lq dw l T ll "* , T «f d» f^impsn y 


CIS Holdings pic 


(lncorpomed fat England and Waka under die 
Cota pantos Act 1985 with Registered No. 2714781) 


Placing and Intermediaries Offer 


45,045,045 ordinary shares of 25p cadi at Hip per ordinary share 
payable in full on application 

sponsored by 

UBS Limited 


Apax Partners & Co. Corporate Finance Ltd. 


Share capital blowing the Issue 

Authorised Issued and fully paid 

Number Value Number Value 

160,000,000 £40,000,000 ordinary shares of 25 P each 98^54,035 £24,738,508.75 

CLS is die balding comp a ny for a London-baaed property group (“the Group”). Approximately 97-5per cent, by value of 
du Group's portfolio b currently a monptind for by 25 properties locared within die M25 motorway. The Group abo owns 
an fatrestanent tnopeity fat PflsMBdorf and, has faaeresti fat fatcome-producfaig devdopmenr atea fat mnldurt and Bnueela. 


A mhtltnutn of U^6L262 new oadtnar 
received under the Incmncdfsri es Offer I 


1 L261 JI61 new ordinary ahsrea will be made available to satisfy thoee 
Ofer must be makde on an application form provided by UBS Limited and must be delivered tnThe Royal Bank of Scotland 
pic so as to be received with cleared funds not laser dun 12.00 norm on Monday, 23 May 1994 or such later rime as UBS 
l i mit ed and Apex Partners Sc Co. Corporate Finance Ltd. may decide. 


beta* offered fat the lntfitnraUsitoa Offer. If valid applications are 
mt of new or din a r y abates fat excess of that number, up Co a Anther 


new or din a r y shares in excess of drat number, up to a further 
■dsfy those applicants. An application under dx lnccrmcdiaxiea 


Li mit ed and Apex Partners Sc Co. Corporate Finance Ltd. may decide. 

The new ordinary abates now being placed and offered wdL on admission to Uatta 
dtatribudoni hereafter dedaicd. made or paid on the ordinary share capital of CLS 
with dhe ordinary shares currently fat bsue. 


cult In foil for aD dividends and other 
Hidings pic and pari pasm In all respecs 


Listing pantouhni relsdng to d* Company are available during nonnal business hours on any weekday (Saturdays excepted),; 
from the Company AttDesmeementa Office, London Stack Exchange Tower. Capel Court Emnaoe. off Barthoumcw Lux!, 
London EC2N LHP. for collection only, up to and i ncluding IS May 1994, and during normal b uslnesi hours (excluding 
Saturdays) op to sod In c lu din g 30 May 1994 form: 

CLS Holdingi pfe UBS Limited Apax Partners Sl Co. Corporate Finance Ltd. 

65 High Street 100 Liverpool Street 15 Portland Place 

Haxpenden. Herts. AL5 2SW London EC2M 2RH London WIN 3AA 

16 May 1994 


Haipendea. He 


London WIN 3AA 



The Financial Times reaches more senior European 
executives with capital markets responsibility than any other 
European Publication.* 

If you wish to reach this Influential audience by advertising 
In the Survey please contact; 


Tim Hart 

(NEW YORK) 

Tot (Z12) 7B2 4600 
Fjcc (212) 319 0704 


Haimah Pnrsall 

(LONDON) 

Tufa 071 873-4187 
tor 071 873-3078 


Sarah Pakenham-Walsh 

(HONG KONG) 

T6fc (862) 888 2863 
Fax: (8S2) 5371211 


FT Surveys 


Antaatenatad Matte Gorp PLC Ox* £l - Cl % 
Am StrasC Dm wry CO Ld Ort D - £3-4 342 
(11My94) 

Aral Strata Brswaiy Co Ld Cnv fled 2nd Prf 
£1 - £8% G1My94) 

Amos VBsgs lri Ort 1«J - £03 042 
p0Uy9O 

Anna Rrotted Oub PLC Ort £1 -£500 
oiMy»«) 

Asset Gtobta Bittte MamtatonH Bond - 
£5498 (1 1My94) 

Aeeottated BritMi todutarira PLC Ort £1 - 
£348f10My94j 

Alton Vito Footort Oub PLC Ort £5(1 vat*| 
-£8O(10My9R 

Aatei VBs Faatttal Oub PLC Ort CS (15 
Voter) - £230$ 

Bntoys tavetamanl PunKCJ) Stating Bd Fd 
-E844 (9My94) 

Bfocure Haktega PLC Ort Ip - E04 
Brancen HaUnga PLC Ort Sp - £04 0406 
Brock &a nk Group PLC Ort lap - £1% 

CCL Grata* PLC Ort £1 - £3% 

CttvsnttaRi PLC Otd Ip - £0.1 IS 0% (9My94) 
Ctiancaiy PLC A Ort 25p - 004025 (BMylU) 
Cnmel tstaxte Coma (TV) Ld Ort 5p - 0042 
Cbrafnen/tatarishara Charineo DMr • £1.715 
(11My94) 

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■A 


LONDON STOCK EXCHANGE 


FINANCIAL TIMES 


Weekend May 14/May 15 1994 


■V MARKET REPORT 


Big programme trade unsettles equity market 


FT-SE-A All-Share Mot 


1.675 - 


Equity Shares Traded 

Ttxnow by vokira ExcMIng: 

Intm-maritat buslnatt and Pmsaas tumew 
1,000 -.** - 


By Stews Thompson 

UK share prices fell sharply in late 
trading. Ignoring a solid opening on 
Wall Street and in US Treasury 
bonds after encouraging US infla- 
tion numbers for April 

Dealers, at first perplexed by the 
sudden slide in the UK market, said 
that most of the pressure came from 
the futures market where one 
marketmaking firm unloaded the 
iUture before unwinding a substan- 
tial programme trade involving 
both FT-SE loo and mid cap stocks. 

At the close of a busy trading 
session, the FT-SE loo index closed 
18.6 lower at 3.LUL2, having been in 
positive territory at the start of the 
day. The FT-SE Mid 250 index was 
also badly hit, closing 206 off at 

3.72L8. 

Gilt-edged stocks, on the other 


TRADING VOLUME 


■ Mqjor Stocks Yesterday 

VOL Ctafaa Day* 

<«■ ge cfnoe 

ASOA Owpt IOjOOO BSk -IV 

MboyMMtaMit *.100 403 

ABwtFWw 1,100 97 

AStoHjOtot 1.600 sn -3 

AnaWnWmr 333 473 -4 

*908 MCO 330 -b 


bond, were in good form throughout 
the session, op ening around Y* 
higher and moving ahead strongly 
to show gains in the region of % 
before settling around a half-point 
higher on balance. The Bank of 
Sbgland said its next auction, on 
May 2S, would involve the sale of a 
short-dated convertible. Details of 
the auction are expected next 
week. 

The equity market began the day 
in good heart, with marketmakers 
ma rk in g share prices higher in 
response to the strong performance 
by US bonds and Wall Street over- 
night and following the highly 
encouraging economic data on pro- 
ducer prices and the restated retail 
sales numbers for Match. 

But the early strength of the mar- 
ket was gradually eroded by the 
effects of a disappointing first quar- 


Apr2fi 

OpSon (MufaRE 

• Myia 


AMMtOay; 

My a 

-MM urn* da 

l idwn Aai 


13 Jwi 2 T 

may tak* plan* fnm 


ter performance by Unilever, one of 
the UK’s leading companies, and 
the emergence of end-account 
profit-taking. 

The FT-SE 100 rose to the day's 
best level, 3.14L9. up 41 early in the 
session but then, ran into small but 
persistent selling; triggered ' partly 
by the disappointing Unilever fig- 
ures but also by selling ahead of the 
US inflatirm numbers. 

US Treasury bonds and the Dow 


Jones index moved ahead strongly, 
driving European band and equity 
markets with them following the 
lower than expected inflation fig- 
ures for April, before stalling. 

The big downwards pressure in 
London was exerted in mid-after- 
noon, when a big seller of the FT-SE* 
future drove the index sharply 
lower and prompted a similar 
retreat to the cash market 

At its worst the FT-SE 100 was 
down 2L6 at 3,u&2, before a late 
rally. Most marketmakers were 
unperturbed fay the late slide in the 
market “It was looking tiled and 
only needed a small push to go 
sharply lower," said one senior 
trader. 

Others, however, remained 
extremely cautious, pointing out 
that although the FT-SE 100 had 
closed well above the 3,100 level 


there was no real confidence in the 
market that international bonds 
had seen the worst of the recent 
turbulence. 

Turnover to the market yesterday 
was 67L7m shares, surprisingly 
high given that it was the last ses- 
sion of the three-week account 

The two oil sectors of the market 
gave another strong performance as 
crude oil prices moved towards the 
$17 a barrel mark. The majors 
attracted fresh support from the US 
while the Lasmo deftw\op dnrnmpnt^ 
responding to the all-paper offer 
from Enterprise Oil, saw another 
big turnover to I-asmo shares. 

Over the week the FT-SE 100 
index has risen 17.2 while the Mid 
Cap has fallen 49.2. Dealers said the 
outperformance of the leading 
stocks was a reflection of sharply 
increased institutional activity. 


1,635 Y Y 

1,600 - V * • A 

y* 

zr- J —z 

Suuwt PTQqpMa 19& 1 

■ Key Indicators 

Indices and ratios 

FT-SE Mid 250 
FT-SE-A 350 
FT-SE-A Alt-Snare 
FT-SE-A All-Share yield 
FT Onflnary Index 
FT-SE-A Not Fins p/e 
FT-SE 100 Fut Jun 

10 yr Gilt yield 
Long gtft/fequlty yw ratio: 



" i'lA.ii- - 


3721 A 

1580.0 
1571.83 

3.70 

2471.2 

2030 

3118.0 
OH 
226 


0 u. 


FT-tt 100 Index 

Closing index for May 13 — 31192 
Change over week — +132 


May 12 

May 11 

May 10 

May 9 

High* 

Low 


31372 

3130.5 

.31362 

30972 

3147.7 

3080.7 


EQUITY FUTURES AND OPTIONS TRADING 


zrsrUt 

Aooo. Bill, torn 

SATImfe.t 

BET 

t*cc 

sr 

BPS tod*. 

Bit 

BTJpOhU) 

BTRt 

Bank ol ScaAmlt 
B»dpat 
aaa«t 
BknCbdat 


Tjr 


BrtL Anapaest 
BrifcnMwqat 
artttfiG«*+ 

BUM Land . 

aOMiSnaarf 

Bland 

Bran CMMt 

a^ten 

OUaAWkvt 
Ctofcwy fl e h in p p — f 

Crier Gnxp 

Ceadcnt 
Caflon Comms.1 
Cooa Vfyadst 
Coma (Mont 
Cootaoci - - 

CouOMWt 
DriO«* ^ 
DsiiRMt 
Cbm 
Easton Baa. 

EM MkSma Bad. . 

ErgCHnuCtey* 

BrttoprtoaOtf 


Marta A Spancert 
MWdiBKL 

Monbon (WmJ 
NFCt 

NmWbm Dankf 


North Watt VMaarf 
Northaraaaa 

- -- r* _ . a 

ivcrown rooutr 
rvora*x> 

Paacaorrf 

PAOt 

FMiglcn 

PoMaOont 

PiuMdt 

R7ZT 

Fiscal 

Rank Onkt 

RaeUK h CaMrrf 

fManTt 

Rand MLf 

RmoMt 

RaiMsf 

RoteRoyc*+ 

RytBkSoodn* 

sssisr 4 

3 ehrprt>r» 

ScottWi ft Naw.t 
Soot Hyoto-Bact 


Vet Ctoatag D^a 
OOOa prtea c 

4.100 137 -lb 

2 X 0 Ub > 2 -4*2 

1.QQQ 478 -4 

1.100 isa>i -i«j 

2*7 068 -8 

2400 4K *1b 

17D SM 4 

MO 124 -a 

3200 21S -4 

4.700 433 -a 

3X300 428 -2 

1,200 2*0 4 

Sfl 00 SD4 

441 039 +1 

2,000 213 -O 

40S 020 -1 

1.100 373 -6 

UDO 009 + 

4X300 131 -1 

2X300 405 +1 

2X300 307 -6 

376 378 43 

2X730 863 410 

1400 221 -4 

ijyv) 4Q3 

2.100 872 -13 

1.100 COO 

668 640 4 

1X300 22* -a 

2000 486 -10 

6X7X3 182 -6*2 

3X300 432 41 

1400 281 -1 

MOO 388 -1*2 

13 1268 -10 

1.700 642 -a 


A mid-afternoon sell-off in 
stock Index futures brought 
a sharp retreat in both the 
June futures contract and the 
cash market as the three week 
equity account ended. 

At toe dose, the June 
contract on toe FT-SE 100 
stood at 3,118, down 33 on 
its previous dose and at a 


small discount to the cash - 
market Volume was 15,705 
contracts. 

In toe traded options, 
turnover was 27,095. The 
FT-SE 100 option saw 
business of 10,760, while 
Lasmo continued to be the 
.most active stock option. 
Turnover reached 2,415 lots. 


■ FT-SE 100 INOBt FUTURES tUFFQ 826 par 06 tadec point 



Open 

Sett pries 

Changa 

Won 

Low 

Eat vd 

Open int 

Jun 

31400 

31100 

-33X3 

31S4X) 

3110.0 

18705 

53511 

Sap 

31800 

91340 

-300 

3165.0 

31800 

702 ' 

1419 

Doc 

31700 

31400 

-300 

31700 

31700 

1 

201 


■ FT-SE 6HD 2S0 B7DEX FUTURES (UFFE^ Cl D per fcO frittax peri-g 

Jun 3731X0 - 21 n 

■ FT-SE N8P2S0 IV06X HJTURE8 fOMLX) E10 per US index point 

Juii 3.727.5 _ 

A 1 op«n Bwb flgutw m far pwfc m etoy. f euidmdMn 

■ Fr-seiooiiaiexofmoNiMB^(si2qeiop8fftaind6xpota 


2860 3000 

C P C P 
Mar 171*2 1 122*2 2*3 
Jin m I 6 I 2 141 25 


3100 3150 33 

C P C P c 

37*2 18 12*2 45 V 2 


171*2 1 122*2 2*2 77*2 7 37*2 IB 12*2 45 3*2 82 *2 M2 
M2 16*2 141 25 185*2 38 75*2 59*2 58*2 83*2 3» 114 18*2 152 


Toman 8 OaL it. 
F<xl*T 

Qov AeckJemt 

CWot 

Oymnd 


SatftonTaonct 

awTOvaportt 

stn^p Ese 
SnttitWiUA 
SnWi & Naphknrf . 
SflMBMdimt 

w un met 


SouhVMMBM. 
SawtiWnt WMtr 


Southern Vftor 
Shndart Chnrtdf 


U 208*2 28 183 « 127*2 54*2 M*z 75*2 72*2 B9*2BE*2 130 88*2 18B 28 283*2 

fog 225 45 188 58 M3h 74 124 9S 88*2 118 15 147fa 5S*z 179 42*z 2*6*2 
“ 88*2 249 


OOCt 241 104 1M*2l41*2 132 181 

CSl 4^85 RMS 1X238 

■ BmO STYLE FT-SE UttlMPEX OPTION flJFF9 eiOpfMI huto pofctt 
8805 2878 302S 3078 3125 3178 3225 


win Mra wn jud airs sz/s 

M * m 1 Mt 1*2 M 4 82*2 10 21*2 38 «*2 82*2 1*2 108*2 1 158 

Jun 202*2 11 188 18 122 29*2 88*2 48 81*2 68*2 M *2 96*2 » 130*213*216812 

M 228*2 22 MB 46 88 88 4B 144 

Sep 281*2 48*2 Ml 74 122*2113*2 77 166*2 

Diet 2*8 76 223 MB 188 146 118 195 

cm 844 PM 1 jn 8 • iMstitag UR Rria PreriM Men n MMd m mint prten. 
t IMB dMM npkj maaBu. 

N’EUBO STYLE FT-3g IMP 280 MOEX OPTION fJMUQ CIO perftM indn point 

3700 3790 3800 Sen 8800 3860 4000 4 

Hay 48 18 23 41*2 8 76*2 2^ 121 

OH 0 Mi 0 SMNM (riM tnt HkM an Hu « 4JWa 


■v j is»; 


Orand Mat 

ss 

CRN 

Qiknnt 

reSC{73pMMt 


TIN . 

T38T 
Iknct 
TdURLyl* • 
Woodrow 
Xmoof 

Vmmmvmmi 

ThomBRt 

ToMomt 

immovNoum 


FT-SE-A INDICES - LEADERS & LAGGARDS 


PoicintB 0 B ohanuai 

OIQqtattD&M 


SL* 

JulvmMifllAQi 


r i I* 

•• I * 

6 f- w I 


indteonnit 

Xondanfint - 


1 ;• 1 |.ii 

V I* Ml London 3 ml 

— 

6 iV 

**.»♦( 1 

f • , FT-SE HU 298 


8,100 

311* 


IMM 

0800 

1023 

-67 

618 

175 

UftadffKMVt 

736 

3M 

-a 

UOQ 

355 

-e 

URLTttoHpapm 

481 

843 


824 

618 

-8 

VodNhnot 

870 

K29 

•9. 

754 

212 

534 

882' 

-3 


0000 
- 1.100 

727 

S 8 S 

-15 

47 

708 

see 

-8 

WMVtar 

243 

582 

-11 

266 

558 

-7 

Wmr 

57 

013 


0800 

IDS 


WMbreoift 

14*00 

572 

aS 

1X30O 

871 


MtarwHOB&t 

641 

364 

-2 

141 

781 

-2 

WKiCMKacn 

764 

235 


1200 

460 


whw . 

086 

171 

■a 

423 

387 

. -1 

WotortXt 

157 

803 

-• 

0100 

307 

-10 

YortaMaBacL 

828 

584 

♦7 

16X100 

164 

-a 

Yofcrtrt* WMar 

' 88 

406 

-4 

242 

684 

-6 

ZaMCRf 

1.500 

722 

♦6 


nukB.PwK.Me. 


KdR M nwu ikiUi 
duaihfmnHM 


z:s=s 


■ RMBlU 4MkK IMk 


UMntHokh. 

ca.MvaKd_ 


FT-SE SfflMCBp KIT. 
FT-SE SME# 


WNtWrt. 


■ncvDocernbar 31 1903 

♦KM FT-SE MU SO k IF 

♦1438 SontSNca 

♦1033 . BKMctBKtieU. 
. +7JQ FT-SE Md 2SQ 

- ♦489 Sadcn 

- 48 JB HuMhCn 

.♦832 Spun, WM ft CHn — . 
-♦ «* imruwUi 

- +S.06 IWaUa, Rad 

.♦474 BJWO 4 CooMscdM _ 

- 4455 hokum Bom 

. 4293 MIUKUn 

.♦£85 FT8tA4M8n 

.♦187 li i Mr i d Traik 

. +1-51 TmMM 

. +122 FT-SE-* 3S0 

--0 St BkMks BkkM — 


FT - SE Actuaries Share indices 


d on Friday May 13 1884 

.-1.18 FT-ffWO -673 

-IS OnMUrSNdi -8.12 

. -174 ft*** 45 

. -133 anui iukm -mlm 

. 4J8 Gn BkRMn -11.17 

-245 UhMnn -1190 

•332 taariok -1422 

.-452 MHU -M32 

•488 iUMwIBUM ->448 

. -838 BKtttr -1488 

- -581 UBka -18-06 

, -&M TU wM n _ -18.13 

. -857 FT BnMIftnikdK -1756 

.-872 NMK — An '.1-1886 

-772 Bnri* -1478 

. -424 Toteca -USB 


The UK Series 


Dirt 

m i3 tow* m i2 


(ft* Earn, PIE XUa* TioW 
NM IN* Q80 |M BM— 


.31102 

-Oft 

31372 

31305 

31303 

28*70 

OK 

041 

1070 

WIK 

115051 

HU 

2ft 

3U0I 

4/5 

38203 

2/2®* 

HU 

23/7/84 

37ZU 

-05 

37424 

37*25 

37513 

31422 

321 

&54 

2103 

3528 

136470 

41328 

3ft 

37ZIJ 

1» 

4*322 

aos* 

13704 

21/1/85 

37306 

-oa 

37552 

37952 

37882 

31710 

043 

908 

2051 

3042 

139527 

41907 

WI 

37308 

13« 

41907 

19TI/M 

13703 

21/1/86 

15KL0 

-08 

15902 

15H2 

im i 

14108 

338 

621 

1027 

1750 

120104 

17782 

2/2 

15*0 

4S 

17*03 

2WB4 

8846 

147UK 

132004 

-02 

132721 

198128 

193323 

159900 

228 

<18 

2056 

1010 

147201 

Z8S4J4 

4ft 

187431 

4/1 

HUM 

*ft®4 

138378 31/12/82 

19002* 

-03 

19D529 

190075 

181127 

160030 

104 

420 

Z7.11 

1024 

1*5020 

299072 

4ft 

«K2B 

4/1 

289072 

4ft®4- 

UBU8 

31A2S2 

1571 S3 

-Oft 

1580*5 

157005 

158123 

140259 

3J0 

626 

1926 

17.11 

121033 

170411 

2ft 

HU 

45 

imn 

92®* 

ItSI 

WWW 


FMC1M ' 

FWW2M 

FMt m Wkt m INaU 

FW 8M8-" 

F7-4E H — a puSwItuN 
FT-K-4 Hl-SHHE 


FT-SC Actuaries AK-Sfiare 

Days . YM Dk bn. W Xdat TtU — : 

r May 13 oq«* Mw 12 M* 11 May 10 ago yM* iU% nie ya Hetia 

I88BML EXnMCTW»C18> Z736.44 -MLS 273078 273341 2737.78 2Z3QJBO 140 449 Z7J8 31S5 108526 273844 

fXnetm MWMasM 390475 -tO-1 390062 390425 385820 3019.0D 332 5X6 2477 4275 10662$ 410728 

04 knaMtdP) 2B88.18 -MU 267821 267820 2B8120 2168.10 322 470 2845 3228 108725 288128 

01 GntoMIgn ft Prodfll) 2027 jn -02 208026 304727 204821 194270 322 122 80001 1538 118125 288843 




•? f V.W 

mV ' 1 

'"Aft 

ru 


10 I— ML HHOBIitlOt 
12 Ettac«n MU6M«M 
15 Oft 

18 ■ BgdUMlBn ft Prod(H) 

20 W 6M»MTUBB(28a 

21 Bdttu ft GaMtadhuto) 

22 8MUag IMi ft HMtfMPq 

23 OMMattl) 

24 MwMM HMMMtatre 

25 BKta£ & Beet EquWSfi 

a EaWmlaotTI) 

27 OglMMBO. WMeMtU] 

28 MMnft Pap« ft PckKTT) 

29 TMM ft Avni(20t 


30 CCWS8« GOQOSOT 

31 BnmOaMlT) 

32 Sfkto, Wm ft CMntm 

33 Food HR Utetf anpa 

34 HOURAM GoutaOS 

36 taflbdnCU 

37 ftBWC KM c M »pi) 

38 Tehaceoffl 

40 M w aagM i • 

<1 HMMhnpl) 

42 LMRM.ft mum 

43 lllllfll 

44 KHMUft FdodfIT) 

45 iMHare, 6anMf44) 

48 swmt SRAMW 

49 Ttnworitm 

51 OOwr Santew ft HHMufjg 

80 tmuiHSPN 

62 BKRIdWT) 

64 Gn DhUMtacCa 


68 WtatlS . . 17 

a mtHwiicmmon 22 

70 PBHHCUUtwa 2T 

71 Mnta(ia) 27 

73 Huaaca(l8) IS 

74 LJN feaaancafB) 23 

75 Usctad Banfa{ 6 } 29 

77 QBWRHCCW04 18 

78 PIWSW 18 

60 BNBTNBir IBOKTStlZS 28 
M FWfrA Mi WWrpiH . IS 

■ Hourly w ownon t i 


-02 207412 2071.52 208680 178820 
-OS 12S33B 1250.14 1287A4 108280 
-09 186400 1963.18 201308 169180 
-07 248920 248573 249077 2KS70 
-1.1 210273 209417 210090 185400 
-1.1 209135 207131 208209 194400 
-U> 194478 194072 186351 1509.40 
-15 242850 242675 243057 172150 
— 287002 280651 29Z3L04 228350 
-05 180750 181671 1821x19 1B19J0 

-05 279558 278153 2772.48 275550 
-05 233554 233651 231770 2W170 
-07 299570 006155 3 00355 278550 
-2.4 237058 238758 237352 229650 
-M 2739.74 271278 2733.77 2218.40 
-03 1729.18 172850 173357 1673.10 
-04 280854 280751 281951 3133.10 
♦07 369130 365754 371537 375750 
-05 204856 294872 204679 175140 
-15 3035.13 305417 3097.45 250550 
-05 mmm 224405 225057 171350 
-05 309458 310058 307550 2248.10 
-15 186150 168005 104057 167050 
-05 170442 170159 178059 150440 
-02 1960.42 165454 160058 150410 
-05 244957 243449 240073 200020 
-Oft 121403 122370 122462 124270 

-41 225156 222077 221754 207430 
-05 213170 209068 207158 108250 
*15 188154 1982.17 187455 194490 
-Ol 187557 195448 197559 183480 
-07 171478 168075 164431 1582.10 

—05 1711.75 170058 171258 152854 
~Al 7 220427 220758 220853 183000 
-1.1 280417 280172 279413 238430 
♦02 129751 131029 132441 130159 
-15 243358 242458 242012 252250 
-17 295378 294006 296756 216430 
-Ol 187410 187488 188456 142410 
♦02 MBQ3D 101020 161098 124850 

-02 283056 283374 282S53 2257 50 
-06 168045 187855 15S173 1«RL58 


355 443 
350 400 
358 355 
371 459 
442 448 
355 025 
250 354 
438 256 
259 498 
857 557 


2430 2414 
3177 1277 
3418 24S8 
2774 2439 
»» 3045 
1955 1272 
3229 1577 
5002 32X2 
2434 2090 
2410 2048 


103078 223258 
98022 -uaut 
90542 7” 1 ” 
108215 255223 
104421 233157 
99018 BUM 
106488 .2011.17 
114351 251871 
111029 384481 
100447 202488 


428 753 1447 4159 92474 384038 
353 751 1655 1151 101430 248652 
355 451 1756 41.70 98478 3053 
411 770 1555 3958 96051 288084 
425 070 1753 9487 961.14 28BU4 
370 551 2157 1950 98402 10840 
458 754 1489 4170 B72J3 3847-29 
487 017 144510255 82758 471888 


257 570 21.10 1354 96448 0477 
251 433 2228 3150 102458 381833 
422 4.18 2055 1053 108158 2 38 8 80 
410 473 2457 3369 108154 334811 

357 488 1483 1253 90044 191428 

458 579 2156 446 921.13 UfftftT 

432 750 1425 838 98416 18BB43 

445 415 2751 1414 33470 HUM 

443 431 80507 491 102408 138888 

445 750 >552 550 84152 0238 

3531152 *038 1465 85800 XB1812 

496 t * 0-00 88433 0877 

400 413 1953 059 82155 348842 

4421488 750 358 82090 212838 

358 097 2030 1049 118153 1879138. 

410 .757 1179 3057 85453 Z737.13 

350 770 1854 5556 82077 0155 

481 1098 1017 2754 87074 15813* 

418 752 1673 8438 81052 292157 

377 1045 111S 2378 88322 378158 

454 447 1455 1955 98378 5058 

3.78 353 3272 421 91002 18M88 

417 151 5553 1854 94085 3W43I 
370 656 1856 17.11 121453 176411 


2/2 208077 
tn. 124152 
am 184874 
27/4 2054 
2/2 0357 
4/2 0858 
2ft 0857 
2ft 212522 
18ft 282119 
4 ft 178362 

24 n MUM 
19/1 217357 
24/1 1*7153 
19/1 228047 
18ft 0034 
W/l 17054 
19/1 280352 
M 0754 
tt/l 2M4J1 
2ft MUM 
17ft 218151 
17/2 2B84BI 

ran 191194 

4/1 10.14 
2ft *82251 

3ft 20568 
10ft 113082 
»2 217958 
2ft 203451 
7/1 187178 
2ft 184821 
3 ft 183558 

2ft 1052 
«2 2R258 
4ft 20412 
24/1 MBL87 
18/1 2054 
33 26054 
4ft WUI 
4ft 188871 

2ft 278LB 
2 ft 155469 


310 273854 13604 
22ft 4WM 2/2/94 
800 0120 10504 
310 394419 8/8/80 
VI 22B5B 2/2/94 

13/5 212560 18/7/67 
13/5 238372 24/1/94 
5/1 2021 27/4A4 
5/1 2ZS1-57 20/94 

300 2028 4/2/94 

40 2911.17 2/2/94 

4/1 281871 2/2/94 

4 n 304551 18094 
310 2059 2/WW7 

20/4 2055 22/12/92 
230 MCB 19/104 
310 MUM 1165/92 
31/3 288854 19/104 
250 288414 1094 
8/4 MUM 28/9/67 
25M 4098 Un/32 
2W 473868 29/12/93 
8/4 228777 19^/94 
310 33053 2294 

4/1 2081 1772/94 
40 3011 170/94 
23/4 2028 28/103 
24/3 0454 29/12/93 
8/4 188863 2/2/9* 
YUS 048ft 3/204 
21/4 MUM nmu 
as 278253 2/2/94 

•5 3012 20194 

4/S 0828 18/12/83 
90 248158 28/12/93 
BO 212879 3/2/94 

310 187828 27204 

« 273753 412/94 

40 380158 4004 
3/5 188428 29/1208 
30 292157 19/1/94 
21/4 379129 21204 
130 227828 4094 
310 2068 MW 

310 318451 209* 

40 mil 2/2/94 


018 14/UK 

98838 9M2 

088 9002 
8K8B 14/101 
88188 21/108 
088 2M06 
028 1WIVB7 

068 14/106 

87228 14/108 
■8050 24000 
00 14/108 
88868 14/106 
058 14/106 
018 14/108 
BZ7.W 21/106 
87868 21/108 
8B8J8 13/106 
89860 9/106 

84188 23/106 

069 21/108 

87440 21/106 
87828 VIM 
81758 21/106 
018 9/1208 
9)088 V2Kn 
98850 14/108 
9B3J0 14/106 
0SB snow 
98858 7/101 

98190 0/13W 
80258 3I0M 
82170 10/90 


028 22/108 
98060 23/106 
87490 25002 
070 23/105 
88250 27/106 

66850 1/1000 
71050 10W92 

877-20 14/UK 
ILK 13/12/74 


FT-SE loo ’ 31415 313&1 31375 3128,1 siwk Biaaa ain« «i««» aiisjf 3141 J 31102 

FT-SE 250 37412 37475 3748.1 373B3 3737.4 37353 • 3733,1 37305 3720J 3747.5 37203 

FT-ffi-^50 ! 591.1 15903 15895 15855 15855 1587.7 15803 18862 15802 15815 1578.7 

Hu «f FT- 8 E 100 03Nm Lois 3 l30Bhi 

■ FT-SB Actuaries 350 Industry baskets 

Brtff IQlOO Itw 12 jOO T3L00 14JQ 1350 1110 CI O— PiMbmI Oun98 

absent-. tww 11B75 11872 11885 11875 riKJ 11825 1172.1 1TO5 VW. a ^145 

PteRtfcaZ* 27905 27953 27943 27813 2787.7 27953 28007 27973 27773 27873 27705 -103 

irara 17207 17342 17223 17200 17T92 17100 1709.1 17007 17023 17153 -12.7 

Bwta 203 28353 28393 28204 2B263 2328.1 28283 g33J2 28123 28O0A 2B39L5 _ -301 


Cl o— Prwriow Pungs 


28123 28004 2839.5 


ri-stoMmnoiicas 
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FT-SE MU 250 


df vaiu« BndWeHanoromie ad» 0* 01 

31/12/92 1000,00 FT-SE 0 0 « lw HwS 31/12/K 141280 WNar 

31/12/82 138079 FT-S6-A350 SSSl— 

31/1232 1303.79 FT-SE 100 31/I2M3 100030 FT-S&AAB-Share 

31/12/85 1412.60 BacMcSy 31/1390 100080 AM OOwr 


0 «■>«■ Eoaftir Ractloa on 
28/12/89 100000 UKGKalndeet 
10/4/82 10030 tam-Unfced 
10/4/82 10030 Oeta and Loans 
31/12/85 100000 


31/12/78 10a00 
30/4/82 10030 
31/12/77 10030 


New gain 
on Portals 
bid news 


A sudden surge to the share 
price of Portals, the specialist 
paper group, prompted the 

Company to armftnnrp tha t it 

had received a bid approach. 
The statement threw a spot- 
light on De La Rue, bank note 
printer, Aijo Wiggins Apple- 
ton, the paper producer, and 
the Dutch group KNP BT, as 
potential suitors. 

Portals, which controls 50 
per cent of the world market 
for bank note paper, first saw 
its shares rise sharply an Tues- 
day. The gain was apparently 
on the back of rumours that 
the company would secure a 
contract linked to the redesign 
of the US dollar. Yesterday, the 
shares jumped a further 99 to 
765p. Market sources said con- 
cern over the earlier share 
price rise had prompted a 
Stock Frchangp inquiry. The 
Exchange would only say it 
“automatically looks at any 
unusual share price move- 
ments". 

Arjo refused to comment on 
the spec ulation, aithnngh com- 
pany sources were said to have 
denied the rumour. De La Rue, 
which has a cash pile esti- 
mated at around £200m, was 
refusing to be drawn. 

Shares to Aijo slipped lK to 
297p. De La Rue foil 7 to 878p 
after totting alow of 872p. Ana- 
lysts said Portals - had a 
break-up value of 800p a share, 
but could attract around 950p, 
which would t ransla te to an 
offer of about £615m. 


Unilever tumbles 

Anglo-Dutch consumer prod- 
ucts group Unilever was the 
biggest caaialty to the FT-SE 
100 list yesterday after unveil- 
ing disappointing first quarter 
results. Underlying pre-tax 
profits below the lowest mar- 
ket predictions saw the shares 
slump and remain under pres- 
sure all day as analysts slashed 
full-year forecasts. The shares 
closed 57 off at 1023p with turn- 
over a busy 3.7m. 

Flat trading to the compa- 
ny’s key markets was com- 
pounded by tough conditions 
to the US detergents market. 


1070 

11.18 11.18 

1078 1078 

1088 1091 

MJSO 27 JM 

9460 27JM 

2440 Z760 

9445 2760 

1086 1631 

17X5 17.25 

17.25 17.25 

2044 2429 

2084 9428 

1745 1748 

3449 2748 

21X0 9460 

2463 27-88 

3220 3686 

3012 3U7 

35.12 3067 

801Z 3057 

3012 3057 


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The results were accompanied 
by a cautious trading state- 
ment which further depressed 
sentiment. Mr Carl Short at 
Strauss Turnbull, a long-term 
Unilever bull, moved the stock 
off his short-term buy list. But 
he added: “Although the news 
flow from the company could 
be dull for a while, it’s impor- 
tant to remember that the first 
quarter results are a poor 
snide to long-term trends.” 

At Smith New Court, Mr Tim 
Potter said that some of the 
worrying trends seen at the 
aid of last year were continu- 
ing. “Even if there is recovery 
in its major markets, trading 
conditions will remain inten- 
sively difficult because con- 
sumers are value-driven. We 
remain bearish.” He shaved his 
full-year forecast back to 
£2.35bn, with Strauss pulling 
back to a similar leveL 

Guinness speculation 
There were contradictory 
stories to Guinness, with turn- 
over reaching 5.5m shares, and 
the share price swing 2 to 
496p. Some traders suggested 
that the drinks group was 
delivering a bearish message of 
tough trading conditions to 
institutional shareholders 
ahaari of its agm on Thursday. 
However, others to the market 
were predicting a different out- 
come, pointing to the expected* 
recovery in the Spanish beer 
market, as well as better news 
an spirits sales. 

There was also speculation 
that LVMH, Guinness’s French 
partner, may be about to 
unload the 4 per cent of Guin- 
ness shares it fa re agreed to 
sell as part of the two groups' 
recent restructuring agreement 
- although the deadline to do 
this is not until June 1995. 

A stronger US dollar and a 
rise in the price of Brent crude 
lifted oil stocks. BP was helped 
farther by an upbeat presenta- 
tion to analysts and rose 2 to 
406p. Enterprise gained 2 to 
431p as the market studied the 
defence document responding 
to its hostile bid for Lasmo. 
Lasmo was very heavily 
traded, closing 2 off at I54p 
with volume reaching 16m. 

Newspaper stocks were 
boosted by a well-received trad- 
tog statement from the Tele- 
graph anti the annual meeting 

at Pearson, owner of the 
Financial Times, which both 
cited the upturn jn advertising. 


Telegraph shares gained 9 to 
620p and thinly-traded Dally 
Mail. Trust improved 37 to 
1465p to the or dinaries - How- 
ever profit-taking saw Pearson 
ease back 5 to 673p. 

Mining group RTZ gained 10 
to S58p on the continued rise in 
the price of copper and other 
base metals on world markets. 

Pharmaceuticals group Well- 
come jumped 7 to 586p in 
response to a positive medical 
journal report. An article in 
The Lancet, the UK medical 
industry journal, said a treat- 
ment associated with the com- 
pany reduced the death rate 
and recurrence rate for 
patients with a form of cancer. 

Participation to a big sell 
programme said to have been 
carried out by US investment 
bank Goldman Sachs and a 
couple of badly handled sell 
orders hit Lloyds Batik which 
fell 10 to 567p. 

Rolls-Royce gave up 7 to 
182p, after trade of 5.1m, on 
fears that sales of spare parts 
were below expectations. Fur- 
ther selling came from SG War- 
burg which advised investors 
to switch out of Rolls and Into 
British Aerospace. 

BAe eased 7 to 6Q3p on light 
profit-taking after its strong 
run earlier this week, which 
followed a two-day visit by 
analysts to the group’s defence 
operations. Sentiment was also 
boosted by speculation that 
BAe had won a lucrative order 
to re-fit-the Tornado fighter 
aircraft. 

Instrumentation and project 
engineering company Whessoe 
tumbled 35 after reporting a 
fall in interim profits and say- 
ing it Is unlikely there wfll be 
an improvement in its perfor- 
mance to the short term. 

News that the recovery in 
west European car demand 
was faltering hit several auto- 
motive-related stocks. These 
included dealers T Cowie, 
which shed 8 to 300p and Lex 
Service, down 11 at 5Q2p. 

There was good volume to 
Cable and Wireless as dealers 
reported a large hue of stock in 
the market Turnover was just 
short of 7m, with the shares 
sliding 5 to 455p. 

Bredero Properties retreated 
4% to lOVip after announcing 
an agreed takeover by Slough 
Estates, up 8 at 248p. Slough, 
which offered lOp a share, 
already owns 49.5 per cent of 
the issued ordinary share capi- 
tal erf Bredero. 


imm-day Mgti and km tar waNc 


■ CHIEF PRICE CHANCES 
YESTERDAY 

London (Pane*) 

Rises 

Arcon Inti 47+3 

Btuebbd Toys 808 + 55 

Castle Comm 295 + 12 

Dally Mail A 1233 + 75 

Manganese Bronze 145+5 
On Demand 99+4 

Portals 765 + 99 

Scottish Radio 600 + 15 

Sharefok 313 + 16 


Falls 

Bredero Props 
British Mohair 
Christies inti 
Eng China Clays 
Highland Dist 
KMnwort Benson 
Northern Foods 
PWS 

Tottenham Htspr 

Unilever 

Whessoe 


lOtt- 41* 
185 - 11 
184-8 
466 - 30 
390 - 14 
453 - 11 
213 - 8 

62-11 
88-3 
1023 - 57 
184-35 


NEW HIGHS AND 
LOWS FOR 1994 

NEWHHKSPft. 

BUUXHQ A CUSTOM (1) EAncnd. Spondek. 
BUM NATLS O UCH18 (N HmMMn, Rwfcrt, 
Run* {AJ. DMR8IFKD IND48 (1| FWdter 
Qatav* CLECTOMC 0 EUSCT SOW R 
Bacmika, MTLtaMto. ENOMmSKI M 
BceaBNr. Emmrm fe*L. Ipaort, ftramM 8Kp 
Pit, TTiyaBtfl EMQ, VMCLE3 (1) Vc+hol 
RX nucm/e M08 n Ccna. MureNaon. MM, 
Magro. HQIMmoLO 00008 (t) OtfKwy. 
MVB8TMMT TRUSTS HI Gtottnorrt Art. Zero 
Prt, OtoTTW. Do Wrta. Tor. LBSURC 6 HOTELS 
M NBrttom. Spaar (JWJ, SEDU ft) TAwwft. 
4XL EXPLOMHON 0 PROD (4) Calm Bntogy, 
Goto POL. RinQar, TU», 06. MTEORATEO (0 
&M8 Itm. TORS. Wood**, On«i 
NNANCUL ID Ptotoltoa. PKTNO, PAPEfl ft 
PAGXB » IQaartokl. Potato. RETAILERS. 

FOOO (I) Mnrtoon (W) Ripe. Prt. SUPPORT 
SOWS |1i BN0 Rml. TRANWORT B Ooorta 
Dun* Jacob* P0 
NEW LOWS (1164 

Ort-W fD BANKS m ABN too. BUBJNWQ » 
CNSim n Barocm. Bmatt Dav. Boazar, 
BaMncti, Bartwlay. Bfyanc Oowtoytoda Fropa. 
Piwftg, TOmpay (SI BUM MATL8 a IfCHlS 
M Camdoa I top^di. H aa mm -Towlia. Tamuc. 
IWQKMfc Wotoato y . 0IW I B UTORS W 
C«]toaia. Saafconva. HmOaoa. ELGCTRNC S 
■LBCT SOUP A BMMEERRia H) DaMOr 
PmK ItaUccrL D, Vlhanoo, EXTRAC17VE MD8 
n POOD MMIUP M Acmot A HuttJwaon. 
Bootar. NM/O UnBtonr.Meu.1M CARE » 
Haaraooa4 Sctnl, HOUSEHOLD 00008 (1) 
Btock O, HSURAMCE (7) INVESTMENT 
TRUSTS (n) MISniKXT COWAMCS m 
UPS ASSURANCE (1) Rakjpe. NBXft (3) aw, 
Mbror. RWRCHANT BANKS (1) Haotoma 7Y*xi 
Prt. OR. EXPLORATION • PHOO (3J, OTOHl 
FMAMCUL |S On« SBRVS 8 BUSHS PJ 
Porto. thtoUnginait 
PKMHMtornCAUmCNRBCtvPfUNa 
PNPOI ft PACKa (3) AO, DM Pactagln0. 

NMC 7Hpc Pft, PROWHTY M HETA0BM, 
POOD n) Tmcd Cml SpG BO 2009. 

NETO0ER0 OBIERM. H ChriMtal ktt. 

Hehaa (T-0 Owe ChwSm «*ia SaMbyi 
A. wywria Odn. Omraa. SUPPORT SOWS 00 

DtoriiSanrica. Baa Data Prac 0 . DaltoL 
RantoM, VMuaMy. TCCT0E9 « APPARB. (1) 
Shto0 nwoPORT n BriMi ftnaayo, Oo Cap. 

saipe Or, Ctortcaon 60 Forth Porta. WATrtH (1) 
BrtMoL AMER/CANS (3} CANADIANS 88. 


AEGON N.V., registered offices at The Hague ; The Netherlands 

At the Annual General Meeting of Shareholders held on 11 May, 1994, the 
dividend for the fiscal year 1993 was fixed at NLG 4.00 per common share of 
NLG 2.50 par value. After deduction of the interim dividend of NLG 1.15 paid 
already, the final dividend amounts to NLG 2B5 per common share of NLG 2.50 
par value. 

The final dividend will be paid out entirely in cash, or in shares chargeable to 
either the tax free paid-in surplus or 1993 net income in accordance with 
shareholders' preference as previously indicated. 

Except for holders of New York shares, the final dividend will be payable as from 
25 May. 1994 at the head offices oh 

ABN AMRO Bank N.V., Bank Labouchere N.V., Coopera tieve Centrals Reiffeisen- 
Boeren lean bank B.A., ING Bank N.V., MeesPierson N.V., Kredietbank N.V., 
Brussels, Kredietbank SJ\. Luxembourgeoise, Luxemburg, Schweizerischer 
Bankverein, Schweizerische Kredletanstalt, Schwa izerische Banfegeselischaft, 
Zfirich, Basel and Geneva, Deutsche Bank A.G., DQsseldorf, and J. Henry 
Schroder Wagg & Co. Ltd., London. 

For shareholders who opt for payment entirely in cash, dividend coupon no. 4 
will pay NLG 2.85 less a 25% dividend tax. 

Shareholders of common shares who opt for payment in shares will receive one 
common share of NLG 2^0 par value upon surrender of 3$ coupons no. 4. The 
shares will participate fully in 1994 results and those of subsequent years. 
Coupons must be surrendered to N.V. Nederlandsch Administrate- en 
Trustkantoor, Herengracht420, 1017 BZ Amsterdam, The Netherlands. 

Rights to dividend payment in the form of common shares will be made available 
to holders of CF Certificates through those institutions acting as custodians of the 
coupon sheets for their shares at the close of business on 1 1 May, 1994,- 

The published commission rates will be paid to members of the Amsterdam 
Stock Exchange to enable them to exchange dividend coupon no. 4 with 
common shares without charging commission to Shareholders. 


The Executive Board 


The Hague, 13 May, 1994 
50 Mariahoevepfein 


^EGON 


Unteft Aum TIw WM Compinjt r 8«or HE mN* oww 















































































TIMES WEEKEND MAY 14/MAY 15 1994 

















































































































































































































































































































































































































21 


FKNANClAXTIMES WEEKEND MAY 14/MAY 15 1994 


WORLD STOCK MARKETS 


AMERICA 


Inflation data 
fails to lift 
US equities 


Wall Street 


More good news on 
failed to provide stocks with 
modi of a lift yesterday mom- 
log, even though the data lifted 
bond prices, unites Patrick 
Barverson in New York. 

By 1 pm, the Dow Jones 
Industrial Average was up only 
S-87 at 3,656.71, having spent 
the morning session no more 
than a few points either side of 
opening values. The more 
broadly based Standard & 
Poor’s was also little changed 
at the halfway mark, down 025 
at 44&50, while the American 
Stock Exchange composite was 
down. 1.05 at 43SL30 and .the 
Nasdaq composite down &39 at 
716.22. Trading volume was 
155m shares by lpm, and 
declines outpaced rises by 1,011 
to 888 .' 

For the second consecutive 
day. there was some surpris- 
ingly good news on inflation 
After Thursday’s unexpected 
0 J. per cent decline in the April 
producer price index, yester- 
day's news of a 0.1 per cent 
increase in April’s consumer 
price index also confounded 
analysts, who had forecast an 
increase of 03 per cent in the 
CPI . 

Taken together, the data was 
the best indication yet that 
inflation is not a major threat 
to financial markets. Yet, apart 
from a brief surge of buying at 
the opening a gain mid- 
morning, stocks did not gafa 
much benefit from the. figures. 
This was mostly because bond 
prices failed to make much 
headway, as fixed-income 
investors turned their atten- 
tion to next Tuesday's meeting 
of the Federal Reserve’s poUcy- 
mairiwg open mat *at commit- 
tee. The FOMC is expected to 
sanction a rate increase at the 
meeting, and investors are ner- 
vous about how annthar tight- 
ening. WfQ be received by the 
markets. . 

Although band prices began 
to recover later in the morn- 
ing, stock failed to. derive 
mndb- strength from the^ftea- 
gmy market By midday the 
benchmark 30-year bond was a 
quarter of a point higher, the 
yield was down to 7.515 per 


Toronto stocks were mixed at 
-midday as weak gold and 
transport stocks offset gains in 
conglomerates and mining 
issues. 

The rally in fiawadhm bonds, 
which had spurred, earlier 
gains in equities, had lost same 

by 

The TSE 300 composite-index 
was up 410 at 4,168.70 in vol- 
ume of 293m shares valued at 
C$309m. Declining issues led 
advances by 269 to 261 with 286 
stocks unchanged. 

Of Toronto's 14 sub-groups, 
seven sectors were ahead by 


Weak sectors included gold 
and silver, down 72L39 at 
9422J1, and transport, which 
eased 1253 to 4,00232. 


Brazil easier ahead 
of key congress vote 


Brazil 


Sflo Paulo eased from the day's 
highs to stand down 33 per 
cent by mid-morning as prices 
coo tinned to test support and 
resistance levels. 

The Bovespa index of the 56 
most-active shares was down 
538 at 15340- 

Chart analysts noted that the 
index had a support level 
between 15,800 and 16300 and 
resistance barriers between 
16300 and 17,300. “With the 
lack of important economic 
and political news, trading has 
become more technically- 
driven over the last few days,” 
one chart analyst said. 

Investors were continuing to 
watt for' congress to vote on a 
presidential decree creating 
the country’s single price 
index. -Reports said that the 
vote, which had been origi- 
nally scheduled for May 11, 
was now postponed until next 
Tuesday. 

Analysts said that the 


approval of the decree was a 
major element In the govern- 
ment's plan to move forward 
with its anti-inflation package. 

Among active issues Tele- 
bras was down 46 per cent at 
Cr45.90 and Petrobras was 
down 43 per cent at CrllO. 

On Thursday the market had 
risen nearly 6 per cent. 

Mexico 

Equities opened marginally 
weaker following the country’s 
first televised presidential 
debate on Thursday. The IPC 
index was down 135 at 223435 
in early trading. 

• Baring Securities in New 
York said that it was advising 
investor s to start buying the 
Mexican stock market more 
aggressively on expectations 
for improved economic growth 
in the second half of 1984, Reu- 
ter reports. Barings said that it 
expected real earnings per 
share growth of 12 per cent for 
a sample of companies in 1994. 
followed by 19 per cent in 1995. 




Metallgesellschaft up 17% on UBS note 


cent and blue-chip stocks were 
smuggling to stay in positive 
territory. Secondary indices 
fared even less wen, with the 
Nasdaq composite under par- 
ticular pressure because of 
weakness in technology stocks. 

Among individual issues. 
Time Warner climbed $1 to 
$38% amid renewed specula- 
tion that the entertainment 
group feces a possible bid from 
its major shareholder, Sea- 
gram. Yesterday's story was 
that Mr Barry DiHer, head of 
the QVC home shopping chan- 
nel, had accumulated Time 
Warner shares with, the inten- 
tion of backing Seagram. 

Philip Morris was another 
notable gainer, rising $1% to 
$52% on hopes that the com- 
pany will split its tobacco and 
food interests. 

Sprint firmed to $36% an 
reports that the company is 
discussing an alliance with 
Electronic Data Systems which 
will combine 'Sprint's telecom- 
munications know-how with 
EDS' data-processing power to 
compete in the multi-media 
business. EDS shares edged $% 
higher to $33. 

On the Nasdaq marked, con- 
cern about slow growth in the 
computer networking products 
business hit technology stocks 
hard. Cisco tumbled $5% to 
$23%, Wellfleet fell $6% to 
$64%, and 3 Com dropped $2% 
to $54%. 


Bourses liked the US CPI data 
and investors, particularly, 
seemed to go for commodity- 
based cyclical*, writes Our 
Market s Staff. 

FRANKFURT turned in 
respectable gains, mostly in 
insurers, automotive and engi- 
neering and metals stocks, 
although trade was quiet after 
Thursday's holiday. 

The Dax index rose 15J2 to 
2258.75 on the session, up 1 per 
cent cm the week, and held its 
ground in the post bourse to 
close at an Ibis-indicated 
2,257.38. Turnover fell to 
DM6.9bn from Wednesday’s 
DMAStm. 

The stock of the day was 
Metallgesellschaft, the disaster 
stock of late 1993 and early 
1994 after its exposure to oil- 
trading losses through a US 
subsidiary. It leapt DM42, or 17 
per cent, to DM285, up 27 per 
cemt on the week. 

The automotive, engineering 
and research team at UBS put 
out a Strang T rtenmnrtwwHalirm 
on the stock this week, seeing 
a lot of pn twrifli in the com- 
pany after its restructuring 
under the new management 
board chairman, Mr Kajo Neu- 
kfrehen, who was successful 
with simi lar e xercises at the 
engines-. KHD, th« ball- 
bearing maker, Eugelflscher. 

Elsewhere there were 


ASIA PACIFIC 


respectable gains for Thyssen, 
up DM630 to DM30230 0Q its 
mobile telephone prospects, 
and for Vein, another DM630 
higher at DM54330 on Tues- 
day's good first quarter results, 
and on its ofl interests at a 
time of rising commodity 
prices. 

PARIS took comfort from the 
US data and the CAC-40 index 
immediately reacted with a 
strong, but unsustainable, rise. 
Having touched a session high 
of 230634, the market slipped 
back to dose the day up 1036 
at 2,187.00, a rise of 13 per cent 
on the week. 

Hoare Govett yesterday rec- 
ommended upgrading the 
French market to “fully 
weighted” on four counts: 
improved economic fundamen- 
tals; support from tailing bond 
yields “as the domestic bond 
market has been sold more 
heavily than others in Europe, 
with little apparent domestic 
justification”; better then 
expected first quarter company 
results; and a likely easing of 
thft “liquidity crunch ” over the 
summer since no further priva- 
tisations are scheduled until 
the autumn. 

LVMH, up FFr6 at FFr903, 
benefited hum a rise in first 
quarter turnover from Chris- 
tian Dior, up FFr13.0 at 
FFr44730. 


FT-SE Actuaries Share 


May 13 
Hauty 


Opnt 1133 11.00 1200 iioo 


THE EUROPEAN SERIES 
USD 16JQQ Ctta 


FT-SE Ewkatf 100 
FT-SE Emtrack 200 


148635 1467.38 
146438 148835 


148849 148838 14BS3E 
148196 148333 148531 


147124 147027 1468m 
148835 1465.42 148006 


m T2 Mv 11 


U« 10 


Hmt 




FT-SE Gunn* 100 148038 1458.12 145530 143730 145063 

FT-SE Bartack 200 1473.49 147345 147135 145104 1465.18 

Ml 1000 esnonfc NgM* ISO - K7M1; 200- 14942 tart* W - M8UD 200 - lflOOS 


AMSTERDAM was pulled 
both ways, with two of the 
most heavily capitalised issues 
moving in opposite directi ons. 

Royal Dutch, which has been 
performing strongly since its 
recent first quarter results 
exceeded analysts’ expecta- 
tions. gained FI 2.20 to 
FI 20790, a week's advance of 2 
per cent 

For UBS, the oil group’s 
results indicated that cost 
reductions were coming 
through, that sales were show- 
ing above average, growth and 
that chemicals were starting to 
turn round. James Capel 
remained more cautious and 
rpaintainpd fts hold recommen- 
dation. 

But there was disappoint- 
ment for Unilever, off FI 530 at 
FI 19530, but up from a session 
low of FI 19330, as investors 
reacted With disapp ointment to 
yesterday's first quarter 
results. Analysts particularly 


noted the group’s lacklustre 
showing in the US and were 
worried about the so-called 
“detergents war” with Proc- 
ter & Gambia 

The ary index finishpd off 
099 at 41138. unchanged over 
the week. Other notable gains 
were seen from KLM which 
was moved by a feeling that 
benefits from its alliance with 
Northwest of the US might 

soon come through, and the 
shares, which earlier saw a 
year’s high of FI 86.70; ended 
up FI 1.40 at FI 56.10. 

MILAN turned its attention 
to fiat, following v ehicle 
group's first quarter results 
which came after the ckwe on 
Thursday. 

The in/iw rose g.ffl to 
80835, up l per cent on the 
week. 

Analysts were not surprised 
by Fiat's 1993 losses - the big- 
gest in its history - which bad 
already been discounted. Of 


more interest was the feet that 
the first quarter of 1994 showed 
a gain of L30bn, compared with 
a 1993 loss of L222bn. The 
shares improved L90 to L7.225, 
2.7 per cent better on the week. 

ZURICH recovered more 
ground after strength in the 

hanking pnd Insur ance swif/ffs, 

the SMI index rising 473 to 
2.6803. L5 per cent higher on a 
volatile week. 

Receding interest rate wor- 
ries left CS Holding, the most 
active stock of the day, up 
SFrl9 at SFi603. Among insur- 
ers, Zurich bearers rose SFr55 
to SFri.310. and Winterthur 
put on SFr27 at SFrff72 after 
good earnings growth in this 
week’s progress reports. 

waurtti found ft itiffiwiH to 
cope with Wall Street’s appar- 
ent reaction to good US data, 
but late institutional buying 
rescued the market, and the 
general index ended 1.87 
higher at 329.03, 3A per cent 
higher on the week. Turnover 
wa s a sol id PtafiObn. 

ATHENS hit a 1994 low for 
the second consecutive session, 
the general index closing 16.58 
lower at 934.19, 4.8 per cent 
lower on the week, with for- 
eign investors worried by pres- 
sure on the drachma. 

Written and edited by William 
Cochrane and John Pttt 


Ericsson 

leads 

Stockholm 

An upsurge in Ericsson stocks 
and an appetite fra: commodi- 
ty-based cychcals featured' in 
Nordic bourses yesterday. 

In Stockholm, the telecom- 
munications major rose SKrSO. 
or 9 per cent, toSKr366. 

Mr Michael Thompson of 
James Capel said that the bro- 
ker had put out a buy recom- 
mendation on Ericsson at the 
end of last week, after the 
stock had underperformed the 
market by 35 per cent since 
last October. 

Ericsson was the main influ- 
ence yesterday as the AfRLrs- 
vftrlden General Index rose 
30.10, or 2 per cent, to 
1,535.20, although Volvo B 
rose SKrie to a new record 
close of SKr748, and Trelle- 
borgput on SKr5 at SKrl20 on 
the climb in metal prices. 

Stockholm's turnover was a 
strong SKrS.Sbn. Other . 
bourses were entertaining, but 
less active. Firmer North Sea 
oil prices helped Oslo rise 1.6 
per cent, the all-share index 
closing 10.17 firmer at 649.69. 

Norsk Hydro, which plans to 
invest about NKrSbn a year 
from 1994 to 1996, closed 
NKr53 better at NKX253.5. 

Helsinki rose 1.5 per cent 
with forestry and metals 
stocks in the van. 


Yen’s easing against dollar encourages Nikkei index 


Tokyo 


The yen’s easing against the 
dollar encouraged buying by 
overseas investors, but selling 
by domestic tngtiintinng eroded 
the priiw and tlw» WiMcri fetter 

Opnewi marginally higher after 

moving in a narrow range, 
writes Erniko Terazono m 
Tokyo. 

. The 225 average rose 4631 to 
20,270.75 after a low of 20,221.04 
and a high of 20,360.37. The 
Topix index of all first section 
stocks, however, fell 1.86 to 

1,64330. 

Volume totaled 400m shares 
against 290.7m. The day’s activ- 
ity rose on trading related to 
the monthly options settlement 
yesterday. 

The Nikkei 300 lost 033 to 
300.75. Losers led gainers by 
eSO to 489, with 184 unchanged 
and, in irnidon, the ISE/NDckei 
50 index rose 233 to 134539- 
Rumours that the Bank of 
Japan was buying dollars 
against the yen prompted some 
dollar purchases by investors. 
The yen eased moderately 
against the dollar, encouraging 
buying of export-oriented 


high-technology issues. 

Hitachi and NEC both hit 
new highs for the year on 
active buying. Hitachi rose Y13 
to Y995 and NEC gained Y10 to 
Y1.180. Other electronics 
stocks were similarly firm. 
With Fujitsu up Y20 to YL050 
and Sony rising Y40 to Y5.880. 

Hopes of a rising market 
share in the US supported 
Mazda Motor, which gained 
Y12 to Y585, and ffino Motors 
which rose Y49 to Y915. 

Some banks were lower on 
pr o fit fairing . Indus tri al Wank- 
of Japan fell Y10 to Y3.290 and 
Dai-Ichi Eangyo Bank lost Y30 
to YL980. 

Retailers rose on prospects of 

a boost In private consum ption 
because of an Income tax cut 
scheduled next month. Ito-Yo- 
kado rose Y220 to Y5340 and 
Jusco gained Y60 to Y2340. 

In Osaka, the OSE average 
rose 7335 to 22,446.74. 

Roundup 

Thursday’s dpriinp in the US 
producer price index, indicat- 
ing better inflationary and 
interest rate expectations, was 
welcomed in. the Pacific Basin. 


HONG KONG detected new 
buy orders and fresh short cov- 
ering from Europe in the late 
afternoon as the Hang Seng 
index rose 255.86, or 2.9 per 
cent to 9,134.72, 6 per cent 
higher on the week in turnover 
up from HK$4.62bn to 
HK$S.02bn. 

Properties were the main tar- 
get, the sub-index gaining 46 
per cent. Cheung Kong, the 
moat active stock, advanced 
HK$135 to HK$37.75, followed 
by Son Hung Rj» . up HKS230 
to HK$49. Henderson Land, 
described as oversold recently, 
climbed HKI3.00, or 8 pa - cent, 
to HK$4030. 

SYDNEY’S All Ordinaries 
index dosed op 283 at 2,070.0, 
33 per cent better on the week, 
lifted by bullish trade in the 
futures market and renewed 
confidence in bonds. Rising 


commodity prices also encour- 
aged buying. 

Turnover was A$527.7m. 
Among leading resource 
stocks, BHP leapt 54 cents to 
A$1738 while CRA and West- 
ern Mining both 1086 20 Cents, 
to AH730 and A$7.70 respec- 
tively. 

The ofl sector closed nearly 4 
per cent stronger on a six- 
mouth high in world all prices. 
Woodmde Petroleum gained 29 
cents at A34.75, Santos jumped 
19 at A$430 and Ampotex rose 
9 at A$435. 

SINGAPORE saw demand for 
blue chips as the Straits Times 
Industrial feiter rose 85.71 to 
2286.12, L4 per cent up on the 
week, in volume of 1003m 
shar es. 

BANGKOK rose 9- is per «mt 
on the day. while its week’s 
gain was L5 per cent. The SET 


index put on 26.45 to 1359.17 in 
turnover ctf Bt47bn. 

The banking sector was 
strong with Thai Farmers 
Bank up Bt4 at BtllO after 
reporting a jump of 317 per 
cent in net profit to Bt2.Um for 
the first quarter. Bangkok 
Bank gained Bt2 to Btl63- 

TAJPBTs weighted index 
rose 5737 to 6,06136, 13 per 
cent better on the week, as 
buying of paper and pulp 
stocks intensified just before 
the close. The sector led on 
continued expectations for an 
industry recovery and higher 
product prices. 

China Petrochemical rose by 
the daily 7 per rent limit on 
optimism over its offer of 298m 
shares thin month 

WELLINGTON gained on 
blue chip buying. Telecam on 
results and Fletcher on the 


extension of a good run. The 
NZSE-40 index closed 12.19 
higher at 2,105.19, 23 per cent 
UP on the week. 

BOMBAY was lifted by spec- 
ulative buying in low volume 
an expectations of concessions 
for brokers in the Reserve 
Bank of India’s credit policy to 
be released today. Tbe BSE 30 
share index closed 27.40 high or 
at 330830, up 23 per cent on 
toe weds. 

n fflilMB fl T nmafanfl shor t, nf 

foreign interest, but domestic 
buying took the all-share index 
up 11.70 to 1,006.07, for a 
week’s decline of 3.7 per cent 

SEOUL failed to maintain its 

strength, as consolidation 
started in reaction to seven 
straight gains. The composite 
stock Index shed 2.00 to 950.45, 
stiH 2.4 per cent higher on toe 
week. 


LONDON EQUITIES 


LIFFE EQUITY OPTIONS 


ROES AND FALLS 


S African industrials rise 


Johannesburg’s • industrial 
shares rose to new highs as 
the mood of - investors 
remained positive following 
the week's political develop- 
ments. 

The industrial index added 
73 to 6,710, for a gain on toe 
week - shortened by two sepa- 
rate closures for holidays - of 
3 per cent 

The overall rose 77 to 5333, 
while the gold index added 15 
to 1*893. 

Dealers said that most of the 
buying interest continued to 
came from local investors with 
foreign institutions remaining 
absent 

One dealer noted that for- 
eign investors appeared to be 
waiting to see what policies 
toe new g ov e rn m ent of Presi- 
dent Nelson Mandela would 
adopt before commiting them- 
selves. 

SA Breweries gained R230 
to B104.00 after posting a 14 


per cent rise in earnings in the 
year ending March 3L 

The steady performance of 
the bullion price at new upper 
levels underpinned gold 
shares, but no major buying 
was seen until gold moved 
beyond $383 an ounce. 

Among gold stocks Kloof 
rose 25 cents to R44.75 as a 
delegation of striking mine- 
workere met management in 
an effort to bring to an aid a 
strike by the majority of tbe 
work force. 

Elsewhere De Beers rose 
R335 to R1IQ.75 and Anglos 
B530 to R235. 

The mining house, Johnnies, 
jumped R5 to R95, Gencor rose 
35 carts to R10.10, and Ban- 
gold 50 cents to R730. Among 
other movers Argus added 
RL50 to R40, Pick n Pay Stores 
made 60 cents to R1435, 
Toyota gained Rl to B30, and 
Sun Twfamatiftnnl was up Rl 
at R48. 


FT-ACTUARIES WORLD INDICES 


•Unity ooR^Sad by It* ftrareM Times. UKL. GoSknan. Sachs 8. Co. and NetWest Secuttss IW. in coniunetion with tha Institute ol Actuaries and the Facufty erf Actuaries 
NATIONAL MO . TKUR8DAY MAY 12 1994- 


REOKMAL MARKETS 
flgmra h parentheses 
•how number at Rdm 
t* stock 


US 


Da/a 

Change 

% 


Pound 

Staling 

Index 


Yen 

Max 


DM 

Index 


Local Local . 
Cunoncy % chg 
Index on day 


Oosa 

Dhr. 

YMd 


US 


mnnao D W may 11 ism- 


Index 


Pound 

Staring 

Index 


Year 


Yen 


DM 


Local 

Cimncy 52 weak 52 we* ago 
Index Ugh low (approx) 


AiieNem. 

Austria (17)_ 
Belgium (42). 


Denmatc (33) — 
FHand{Zg___ 

France 

Germany 
Hong Kong (50). 
Ireland (14) 

tt-y ( 
JapmWSU 
Mateyaiam- 

Maxfcapq. 


, 167.41 
, 17X41 
.173.43 
-126.44 
. 234.80 


161.84 

17SJB 

14028 

— 3B3JB 

183.11 

.8622 
157 JB 


,-471.13 

1867.74 


NstMrtend p6) 202.42 

New Znbnd (14) — 87.04 

Norway (S3) 104.47 

Bfa y yon . , , 88BJ W 

South AM« (59) 287.00 

Spatl (42} — 14347 



United Mngdom EOS)- 
USA (51 ty _ 


- 0.1 

0.0 

-0.7 

02 

02 

02 

02 

0.1 

-07 

12 

Oil 

-05 

-13 

02 

20 

02 

-OB 

- 0.1 

22 

ai 

-ai 

09 

05 


11058 

11455 

11456 


16553 
171.46 
171.48 
12102 
251.75 
15014 
.17356 
14128 
38051 
18126 
0524 
IGSlSI 104.16 
465.85 81122 

164078 123821 
20015 133.72 


188.19 

10031 

11524 

8424 

24013 

12026 


14521 

15082 

15064 

10022 

221.16 

13128 

162.45 

134.44 

31522 

159.06 


15428 

15024 

14724 

12621 

22028 

17228 

157.72 

124.44 

36022 

17623 


02 

02 

02 

-02 

02 

02 

02 

02 

0.1 

—til 


354 

127 

071 

226 

026 

026 

225 
125 

226 
045 


187.88 

17041 

17228 

12723 

254.13 

18127 

175.17 

14823 

36330 

18427 


It 
172.71 
17223 
12822 
253.11 
15028 
17447 

14246 

36138 

18323 


11072 

11421 

114.19 

8428 

18722 

10028 

11828 

9445 

23822 

121.75 


14557 

15087 

15045 

11078 

221.10 

13127 

15240 

12444 

3162B 

18047 


15425 

15024 

14724 

12821 

2MJB 

17228 

157.72 

12444 

38034 

17820 


18015 

18641 

17827 

14521 

27078 

158.72 

18537 

14727 

50828 

20033 


13018 

14014 

14122 

12146 

20758 

3554 

14820 

10759 

27142 

15523 


13821 

14024 

14549 

12089 

22129 

9327 

154.71 

11121 

284.14 

18125 




___ 

cm 

__ 


Ml 

__ 

OpOOB 


M 

Od 

Jnt 

Jd 

Oct 

M 

AfleMjOB 

540 

46 

S3 

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12* 

20* 

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P5B0 J 

589 

16* 

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45* 

— 


240 

18* 

24* 

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12 

16 

21 

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2B0 

9 

14 

18* 

24 

26 

32 

ASOA 

50 

8 

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11 

2 

4* 

4* 

r»i 

60 

3 

5 

1* 

8 

10 

MM 

BrtAkwas 

390 

17 

28 

34 

22 

29 

34 

re»i ) 

420 

6* 

18*22* 

43* 

48 

52* 

SBflfetaA 

390 

28* 

38 

48* 

14 

24 

29* 

T405) 

420 

14* 

28 

3Z 

30* 

39* 

46 

Boots 

500 

51*1 

96*65* 

8 

14* 

21 

rS43) 

BSD 

18 

28* 

31 

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37 

44 

BP 

390 

38 

m 

45* 

12 

17* 

23 

T406 J 

420 

w* 

24 

31 

26* 

33* 

38 

BrtthSU 

140 

14* 

IBM 

22 

6* 

10* 

12* 

n46j 

160 

S 

10 

13* 

17* 

21* 

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MO 

34* 48* 

58 

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600 

13: 

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38 

48* 

55 

68 

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450 

28* 

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C454 J 

475 

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500 

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98* 

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r544) 

550 

ta* 

32 

42 

33 

42 

48 

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53 

13 

23 

27 

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600 

t»i 

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28 

41 

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800 

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78 

23 

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48 

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350 

24 

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53 

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88 : 

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560 

33 ‘ 

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97* 

23 33* 40* 

rw? j 

600 

13 

24 

38 

53 

63 

69 

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660 

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82 

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700 

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56 60* 

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420 

24* 33* 

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460 

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460 

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19* 

30 

32 

P482) 

500 

11* 17* 28* 

45* 

65 56* 

SUnduy 

360 

35 

4148* 

11 16* 

22 

C387) 

390 

16 

26 32* 

24 

321 

m 

SMTm. 

700 

68*70* 77* 

7* 

18 20* 


750 

27 88* 

48 

23 

37 42* 

Stanaoun 

200 

23 

28 

32 

5 

8 11* 

rei7) 

220 

9*18* 

21 

14 17* 

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97 

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106 

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ummt 

1000 84* 

78 

82 

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1050 

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63 

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Zmca 

700 

47 81* 

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and IMt 

420 

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460 

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33 38*! 

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39 

ladbnks 

180 

18 

a 

28 

7 

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200 

9*15* 

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18 25* 28* 

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330! 

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47 

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360 ' 


a 

32 

25 

33 

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open 


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146 

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160 

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tor 1 

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B&29 

19226 

333.16 

28400 

14128 

22222 

14920 

190.73 

178.84 


4429 

12846 


17857 

94.77 

14852 

10014 

12742 

11034 


EUROPE (72^-^— — _™.— 170.T2 08 18821 11238 

NaafctHA. 21220 01 21051 14064 

Pedflc Baihi (750) — 165.40 05 16885 10828 

&ro-P*»c (1474).. 18721 05 18553 11048 

North -Vnertca (825) 17750 05 17551 117.12 

farapnGL IK (514 15322 04 152.19 10158 

l«teBt.JMMn(W1) 2«26 -0.1 23934 16990 

WwW Be US (1657) 16820 05 186.12 11098 

V«oiMBlUKC1971) 168.10 04 16751 111.71 

World Ex, 9a At' (7117) 17053 05 188.71 112.71 

World Be Japan (1707] ^.18049 04 17848 11023 


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289 

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14025 

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BrfUati Funds 

54 

13 

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221 

102 

42 

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0 

9 

30 

15 

30 

Mineral Extraction 

74 

62 

75 

359 

254 

392 

General Memiecbsere 

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200 

S79 

516 

983 

1,837 

Conauner Goods 

23 

58 

111 

164 


543 

Sendees 

72 

132 

310 

418 

834 

1.525 

Uttttits 

11 

26 

10 

107 

79 

44 

Hnanolihi 

84 

128 

188 

392 

679 

918 

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75 

73 

323 

386 

490 

1/180 

Others 

41 

62 

30 

180 

2S3 

171 

Totals 

506 

731 

1.441 

2.774 

3,882 

0982 


DM beaad on tfioae oompariaa MM on ttw London Gtoa Saniee. 


Last Dactarellons 
For aatSanwnt 


Aug 11 
Aug 22 


TRADITIONAL OPTIONS 

FtatPaaings May 3 

La« DeaBng c May 20 

Cals: Aegte. Afied triah Big Arcon (nt, HutfarprM. HR Data Mng, NHL PT, NSM. 
TMtow 08, VBtaa, World Aida. Puts: AOad Msh Bk. Arcon hit, Huntatprtat, 
KMbU, NSH, Ukihook; Ttooar OL VUMra. 


LONDON RECENT ISSUES: EQUVT1ES 


haue Amt 
price paid 

P ito 

MW. 

<Bn) 

1994 

Wtf Low Stock 

Ckiee 

price 

P 

4A 

Nat 

dv. . 

Or. On 
cov. yid 

WE 

net 

_ 

F.P. 

134 

10 

9 Abtrast Scot Wrm 

10 






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FJ>. 

12213 £14% tMh MnmA GoH 

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- 

FJ>. 

300 

101 

100 Beta Stab* Em C 

100 


- 

- 

_ 

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110 

KR 

403 

ns 

110 DOS Data 8 Res 

113 

-2 

LN28 

1.1 

3.1 

S7JJ 

160 

F-P. 

60.1 

171 

160 OFT Bus 

168 

-1 

RN38 

33 

2 JO 

13.0 

120 

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41P 

128 

125 GtFAlnod 

125 


MN4JI 

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4J) 

19JJ 

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21.0 

483 

479 Gomtx Gtobei Srrb 

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to 

to 



185 

KR 

413 

198 

180 Kamtoye 

182 

-1 

W4.7 

22 

32 

175 

- 

FP. 

- 

98 

94 Ins Blond) 

94 


— 




- 

FP. 

- 

50 

30 Da Warrants 

50 


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130 

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138 

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123 

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80 

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1414 

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100 Templeton Emg C 

101 


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100 

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81^ 102*2 

99 Undervalued Arts 

102*2 


- 

- 

- 

. 

ISO 

FP. 

409 

159 

154 tynura 

ISO 

+1 

1AM 

22 

05 

154 

RIGHTS OFFERS 








issue 

Amount Latest 






price 

paid Renun. 

1994 




Price 


P 

143 

dole 

Ugh Low Stock 




P 




- 

N1 

- 

3pm 

390 

M 

17/B 

94pm 

27 

M 

M 

1M 

2276 

IbP" 1 

7^pm 

3 

M 

31« 

8pm 

55 

W 

- 

18pm 

500 

ta 

28/6 

63pm 

5 

NH 

31V5 

%jxti 

182 

Ml 

15/B 

27pm 

2 

Nl 

24/5 

4tfsn 

24 

Ni 

- 

11pm 

330 

Ml 

WO 

43pm 


1pm 

28pm 

tem 

5 1 2pm 

s 

% 

8pm 

Vpm 

10pm 

OEnm 


AMrust Scotland 
Ahtoum 
Altad Radfa 
B abco ck kdt 
4Chpld 
Date Electric 
Denim VaBay 
FaromHdgs 
Huntm Aimay 
Timor* 

UM 

wnama Mdo> 


44h 


uaffJII 

Wi 

5%n -1 
6pm +l3z 
5pm 

44pm -a 
hpm 

6pm -8 

Vpm 

10pm 

36pm -1 


MMtapa 

HE) 


in 15* UM 
200 7 13 


8 11 
18 23* 


18 II 
28 30* 


FINANCIAL TIMES EQUITY INDICES 

13 May 12 May 11 May 10 May B Yrago High low 


* Undaiytip aecuty price. Pnmksna Worm tea 
bated on eteakro oder ptfcea. 

May Tfatu etac 8&6M Ms 12488 
nr* M548 


Ord.dh.yWd 
Esn.yKL % Tul 
P/E ratio net 
PiEmfeifl 


FT GOLD MINES INDEX 


2471.2 

453 

550 

1950 

2038 


2484.1 

450 

5A5 

1957 

2050 


24315 

450 

5.46 

19.66 

2054 


250ai 

359 


18 J2 
2051 


24775 

452 

548 

1856 

20.47 


221&4 

4.19 

621 

1958 

1957 


27135 24392 
456 353 

851 052 

3353 19.46 

3080 2037 



%*0 

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12 

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230740 152286 

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344080 1861 JO 


+16 

2=9230 23C&0B 17M.78 

2.05 

301X89 1883.16 

| 156832 

-13 

10138 157236 15D422 

0J1 

203965 138380 


taCL aa Namn awBY ^JSAJ. prte 

Naam. Hw«Ket« fe^aL Mr. Jn. Mdara*. Naa auvn. ' 


My. 


, Sngwnre, Spakv UK. nd USA. 


M4 for adboa Hrt* open ttW»t 


Attatiq 
North AmarfEafll] 

CanyiloK Iha HnanoM Tknaa UnBad last. 

Pgna h faradom tor nurWar of coraparia a . Bada US OMara. Bata Vkua: 10RUX) 81/12 AL 
PrtdKaam Odd Mam tndac Uey 1* £865 : cta/» Bhanga: <02 pone Yaw agar 165.1 f Part* 
Lmat prtem mm gnaWMie ter Mt edderw Marttt* deaad WM 9cuh Atlca 


T wjim*. Shaa indw ahoa MWipatikax Wgh 27135 aotW: low 48J aaw/to 
rr Mawy am not» urn daw 1/7/3S. 

Ordkmt flan howir changaa 

Open 900 IMP 1150 1250 1350 1450 1550 1658 Ugh Lnw 
2436J 24875 2484.7 2467.5 24865 24885 24895 24845 24714 2490.7 2486.7 
May 13 My 12 Mtyn May 10 May 9 Yrgoo 


SEAO bargataa 32*14 27.151 27.770 

B*ity turnover (£nyr - 1439* 13995 

Btyity bargatnat - 29/488 30,649 

Sham traded (mOt - 6125 7065 

T EWU*no ktewtrarhat Wrrtm nd wan unrw. 


26,713 

13405 

295B0 

5482 


24530 28516 

8125 11S1.7 

27^439 31.na 

417,1 


J 






22 















































FINANCIAL TIMES WEEKEND MAY 14/MAY 15 1994 


23 


LONDON SHARE SERVICE 


hh 


+jj 


ft. * 

-m rj% 


tO 133^ oc 




ITT 102 

S6 m 

— V 33 

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— fas no 

> — - £186% £170% 

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538 440 

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17 13 

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36 35 

— 1TO 142 

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tZ7 m 

— 158 Iffl 

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+% BS% 831, 

— US 290 
+1 VC 124 

223 184 

+% W g 14$g 

“ 43 29 

218 1TO 

+7 ms 1103 
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— 31 33 

-% la 120 

“ lift 10S 

— in its 
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ji mg, jtm 

— IG2 I S3 

= *ft*ft 

VBh lift 

-a to is® 

*881, 91% 

125 107 

003 447 

~% 10B 90% 

— m 181 

177 1S2 

177 1S2 

181 142 

-1 « 3D9 

— *178 139 

36 2D 

— 172 M3 

— n 6z 

S3 45 

t 1 ! Sill 1ft 

' MBS 976 

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178 113 

98 86 

B2 35 

-1 .412 349 

493 333 

an . 23s 

~ 136 HJS 

+1 45% 22% 

HI 18 9 

— aw 481a 

TO 92 

183 463 

-8 TO 81 
147 120 


38 1842 104 
28 832 123 
£7 281.5 128 


Price 

2 

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24 


iiMr/irg 


/WoOo 


PULP, PAPER & 

paperboard 


FINANCIAL TIMES 

Weekend May 14/May 15 1994 


ORR & BOSS 


Intern .it ion til Consult.' m ts 
help vou protit trom 

WASTE MINIMISATION 
I’d: 071-240 2b44 


BA braced for test flight of wills 

Jenny Lue$by on the airline’s plan to defy a landing bah at Orly 


The crunch may come shortly 
after 7am on Monday, 29,000 feet 
above the RhglreVi Pharmpl 

The captain of British Airways 
Bight 332, bound from London’s 
Heat hrow airport to Orly airport, 
south of Paris, will request per- 
mission to proceed into French 
air space. 

A refusal would be unprece- 
dented, providing the flight plan 
has been accepted. The airline 
has already logged a flight plan 
for BA332 for Monday. It has 
done so every day since March 
27, but the flight plan has never 
been used. 

So for, BA has always can- 
celled the flight Not because it 
wants to, or does not have the 
right to fly, but because the 
French have been barring British 
flights to Orly in defiance of a 
European Commission ruling last 
month. 

BA says, however, that on 
Monday it will not cancel the 
flight The 247-seat Boeing 767 Is 
fully booked. Passengers include 
a member of the European parlia- 
ment, a French television crew, 
BA's group managing director 
and a pack of journalists. 

The pilot knows that BA has a 
landing slot booked at Orly. It 


UK rejects French compromise 


Brftato and France yesterday held 
high level talks in an attempt to 
defuse the crisis- over access to 
OrTy airport, write Paul Betts In Lon- 
don and John Ridding in Paris. But 
Brftjsh Airways and Air UK insisted 
they would launch services to Orfy 
on Monday In defiance of a ban by 
the French government. 

France is understood to have 
offered a compromise by suggest- 
ing it was prepared to open Orly to 
UK carriers at the end of June. 
However, Britain Insisted that UK 
carriers had “the right- to fly to 
Orfy on Monday, after the Euro- 


pean Commission’s ruling lost 
month ordsrbig France to open the 

Oriy-London route immediately. 

UK officials said Mr John Mac- 
Ctegor, the UK tr ansp or t secre- 
tary, and Mr Bernard Boseon, Ms 
French cotvrterpart; were ex p ected 
to hold telephone talks last night 
fen an effort to resolve the dispute. 
The French gove rnm ent cites con- 
gestion at Orfy, environmental con- 
siderations and Incr ease d access 
to London's Heathrow airport for 
French carriers as issues which 
need to be resolved before the 
route is opened. 


has check-in desks, a handling 
agent and a parking space. By 
5am he will also know how 
French air traffic control and 
Orly airport have reacted to the 
flight plan. 

The only grounds for rejecting 
a flight plan are if the paperwork 
is not in order, if there is a secu- 
rity problem, if the airport is 
dosed or if the airspace is fdlL 

The burden of proof will be an 
France to justify a refused flight 
plan. But it would bring Mon- 


day’s test of wills to a swift dose: 
no flight plan, no flight W31 the 
French be wflHng to flout Euro- 
pean law? The pilot can only ask, 
and wait. 

If he gets clearance, the air- 
craft will take off - at (L5Gam if it 
is on time. The flight should be 
uneventful until the aircraft 
reaches the English Channel 
where the captain will switch fre- 
quencies, announce his presence 
to French air traffic control and 
be acknowledged. 


But any minute could bring an 
order to divert to another airport. 
If it comes, he will argue the 
case. He has the landing slot He 
will push for precise details of 
the obstacle standing between 
flight BA332 and Orly airport. 
The law is on his side. And be 
wants to go to Orly. 

He will be an experienced BA 
pOot, part of senior management, 
a fluent French speaker. And be 
will fight the diversion. 

Heathrow-Orty is a short hop - 
ya miles a nd a flight 

time of 65 minutes The captain 
will have more than adequate 
fneL He can circle. He can argue. 
He can make a nuisance. And he 
ran a point. 

He will not jeopardise the 
safety of his passengers. French 
air traffic control wffi be obliged 
to keep him in safe airspace 
while the negotiations go on. 

hi the end, he may win. With 

his landing' guar on Orly'S raw. 

way, he will have opened up a 
route that bis airline wants. And 
if, eventually, he has to land 
instead at Charles de Gaulle air , 
port, he will at least have forced 
the French to show their hand 

Showdown over France, Page 9 


Schroders close to takeover 
of US affiliate in $150m deal 


By Roland Rudd 
and Robert Fasten 

Schroders, the UK merchant 
bank. Is dose to taking control of 
Wertheim Schroder, its US affili- 
ate, in a deal approaching $150m 
(£102. 7m). 

The takeover will give Schro- 
ders the biggest wholly-owned 
Wall Street investment banking 
business of any British merchant 
bank, leapfrogging SG Warburg, 
its main rival. 

Senior Schroders’ executives 
said execution of the deal was 
being delayed pending the formal 
settlement of a $375m suit 
against Wertheim by the Ames 
department store group. Agree- 
ment in principle has been 
reached for Wertheim to pay an 
estimated 519m to Ames to settle 
the proceedings, but the terms 
are subject to court approval 

"As soon as the case is settled, 
the takeover of Wertheim will 
take place,” a banker said. He 
added that Schroders would pay 
up to 5150m for the 50 per cent of 
Wertheim’s voting shares and 
57.5 per cent of the preferred 


shares It did not already own. It 
bought half of Wertheim in 1986. 

Wertheim’s managing partners 
hold the other 50 per cent of the 
voting shares, while Bank of Bos- 
ton, Massachusetts Mutual Life 
and Mitsubishi Trust Bank each 
have small non-voting stakes 
equivalent to 43 per cent of the 
total equity. 

A senior Schroders' director 
said: "The deal will enable us to 
compete with the big boys in the 
US by controlling a US bank with 
a proven track record.” 

But another Schroders' execu- 
tive said that there were risks 
because the merchant bank was 
so different from Wertheim. The 
US firm is a securities trader, 
while Schroders has concentrated 

on investment irwnagpinpn t and 

giving advice to companies. 

Schroders’ corporate clients 
also tend to be the biggest UK 
and European companies, 
whereas Wertheim specialises in 
medium-sized US businesses. 

The biggest source of tension, 
however, is likely to be remuner- 
ation, a banker said. "The top 
guys at Wertheim earn over Jim, 


far more than Schroders’ execu- 
tives." he said. 

The banker said he expected 
Schroders to reorganise the 
senior management of Wertheim 
soon after the takeover. 

Schroders has delayed the 
acquisition to avoid ifohnf ty for 
damages from the Ames ftig pnte 
Ames accused Wertheim of 
breach of fiduciary duty, profes- 
sional malpractice, unjust enrich- 
ment and other improper conduct 
relating to its work as adviser in 
Ames' 5L3bn purchase of the dis- 
count store division of Zayre Cor- 
poration in 1988. 

It alleged that it paid too much 
for the discount stares and that 
the highly leveraged takeover 
was largely responsible for finan- 
cial difficulties which led Ames 
to seek Chapter 11 protection 
from its creditors in 1990. Ames 
haa now emerged from Chapter 
11 protection. 

The suit also alleged that Mr 
James Harmon, Wertheim’s 
ckalrmim who also h pffdefl the 
Ames board between January 
1983 and June 1990, breached his 
fiduciary duty dnring the dpal. 


Palestinian euphoria at Israeli withdrawal 


Continued from Page 1 

another policeman, said he had 
fought in Beirut in 1982, when 
the PLQ was forced to withdraw 
from Lebanon, and in the Leban- 
ese port of Tripoli in 1983 when 
some PLO fighters staged a 
mutiny against Mr Arafat 
“We want to rekindle the hope 
of our people alter so many years 


of occupation," he said, as he 
hugged relatives he had not seen 
for more than a decade. 

Policemen immediately started 
directing traffic and operating 
joint patrols with Israeli police in 
separate vehicles, as agreed 
under the self-rule accord. 

In Gaza, Israeli troops finished 
polling out of Palestinian areas 
in the south of the Strip. 


Up to 20,000 supporters of the 
extremist Islamic Hamas Move- 
ment -marched through Gaza City 
to welcome the Palestinian police 
but condemn the peace accord. 
Demonstrators hurled stones at 
remaining Israeli positions and 
troops opened fire wounding two. 
Israel says it win complete its 
pull out from Gaza by next 
Wednesday. 


Eurotunnel 
cash withheld 

Continued from Page 1 

participation of the Japanese 
iwniw because to they have 
contributed 23 per cent of the 
existing £6J5bn commercial bank 
facilities, far more than banks 
from any other country. 

Their ability to make new 
loans is constrained by the ero- 
sion of their capital caused by 
the prolonged Japanese reces- 
sion. 

Eurotunnel’s directors will be 
made aware of the loan shortfall 
at a board meeting tomorrow. 

A banker said: "There is no 
rihgnnp cf all the money Turing 
received by Monday evening.” He 
added that Eurotunnel would 
face some very difficult choices if 
the bank flwgnrp has not been 
raised by the end of the week. 

“Directors could try and make 
do with less than the full £70Qm. 
But that would not be easy." 


Labour 


Continued from Page 1 


However, Mr Brown was thought 
likely to face opposition from Mr 
Prescott and Mr Robin Cook, 
another potential candidate with 
strong finks to the traditionalist 
wing. 

The bookmaker W illiam Rill 
cut the odds on Mr Blair to 1-3 
favourite. Odds against Mr 
Brown are 5-2, Mr Prescott lM, 
Mrs Beckett and Mr Cook 16-1, 
Mr Jack Cunningham 33-1, Mr 
Neil Bannock, Mr Peter Mandel- 
son and Mr Jack Straw 50-L 
• Labour announced last night 
Mr Smith’s funeral will be at 
Cluny parish church, Edinburgh, 
next Friday. 


FT WEATHER GUIDE 


Europe today 

A large depression west of Portugal wUI 
cause unsettled conditions in much of 
western Europe. There wiB be rain over 
Portugal and the southern parts of the 
United Kingdom. A Une of heavy showers 
wfll march north through France. Frequent 
thunder showers will erupt over mountains, 
Including the Massif Central and the French 
Alps. 

It will be sunny in Holland, northern 
Germany, Denmark, southern Sweden, 
Scotland and northern England. Northern 
Scandinavia will be cool with patches of rain 
along the Norwegian coast Eastern Europe 
will have tight winds, mixed sunshine and 
afternoon showers. It will be sunny with 
temperatures above normal for the time of 
year across the entire Mediterranean. 

Five-day forecast 

Cod air from the Norwegian Sea wfll spread 
to the North Sea area. As a result, 
temperatures win drop hum the British Isles 
to Scandinavia and most places wfll have 
cloudy periods. Cool conditions will spread 
further Into Portugal. Spain and France. A 
south-westerly wind will bring sunshine and 
increasing fy higher temperatures to centra! 
end eastern Europe. 

TODAY'S TEMPERATURES 



Situation at 12 GMT. Tampmtures mwdmum lor day. forecasts by Metao Consult of Bm Nethe rta nds 



Maximum 

Baflng 

cloudy 

20 

Caress 

shower 

28 

Etfnbutfi 


Celsius 

Beltei 

fair 

20 

Cardiff 

rata 

23 

Faro 

Abu Dhabi 

sun 

33 

Befwada 

fair 

re 

Casablanca 

fair 

21 

FrwMuit 

Accra 

Mr 

32 

Berlin 

fair 

25 

Chicago 

thund 

24 

Geneva 

Algtora 

sun 

25 

Bermuda 

sun 

26 

Cologne 

thund 

28 

Gibraltar 

taetattam 

ft* 

25 

Bogota 

thund 

20 

D* Salaam 

i * 

31 

Glasgow 

Athens 

sun 

25 

Bombay 

fair 

33 

Dakar 

eun 

25 

Hamburg 

Altana 

(dr 

27 

Brussels 

thund 

27 

Dribs 

tbimd 

28 

Helsinki 

B. Aires 

sun 

24 

Budapest 

fab- 

26 

Delhi 

shower 

38 

Hong Kong 

BJrani 

thund 

21 

Chagrin 

sun 

19 

Dubai 

8UI 

35 

HonoUu 

Bangkok 

thund 

33 

Cairo 

3un 

32 

Dublin 

shower 

17 

Isteibuf 

Barcelona 

lair 

22 

Cope Town 

Hr 

20 

Dubrovnik 

shower 

28 

Jersey 


Quality flights made in Germany. 

© Lufthansa 

German Airlines 


Karachi 
Kuwait 
L Angeles 
Las Pafcnss 
Lima 
Lisbon 
London 
Lux.bewg 
Lyon 
Madeira 


su> 

15 

Mactod 

fair 

20 

Rangoon 

fair 

34 

shower 

19 

Mqjwoa 

frir 

24 

RayigavBr 

far 

10 

shower 

27 

Malta 

fair 

Z7 

Rio 

shower 

26 

rain 

17 

Manchester 

shower 

21 

Rome 

tab- 

25 

fair 

zz 

Manila 

far 

34 

S. Frsco 

fair 

18 

far 

21 

Mribowne 

cloudy 

12 

Seed 

rata 

20 

fair 

23 

Mexico City 

sin 

24 

Singapore 

Shower 

31 

deudy 

14 

Mam] 

sun 

32 

Tftn i‘Ji4i n> i 
glOCTOm 

ter 

20 

far 

31 

Man 

thud 

19 

Strasbourg 

thud 

23 

fair 

29 

Montreal 

fair 

19 

Sydney 

fair 

20 

fair 

23 

Moscow 

fair 

12 

Tangier 

Swi 

20 

shower 

18 

MtSKh 

shower 

25 

TriAvfy 

BUI 

re 

hazy 

34 

* 1 — - - - 1 I 

IwllM 

shower 

25 

Tokyo 

fair 

22 

sun 

38 

Naples 

ft* 

27 

Taranto 

shower 

23 

Ur 

20 

Nassau 

Mr 

30 

VatGower 

rata 

17 

fair 

23 

New York 

sun 

23 

Venice 

shower 

21 

fair 

22 

Hn 

fair 

22 

Vienna 

doudy 

ZB 

rata 

19 

Nicosia 

sun 

2S 

Warsaw 

fata 

25 

rah 

23 

Oslo 

sui 

23 

Washfagton 

sun 

24 

Sinl 

21 

Paris 

thund 

IS 

Wdington 

rain 

10 

rain 

18 

Perth 

fair 

23 

Winnipeg 

fair 

21 

fair 

21 

Prague 

far 

25 

Zuldi 

ihund 

21 


THE LEX COLUMN 


Unenterprising defence 


The gap in Enterprise's attack is 
matched by a gap in Lasmo’s defence. 
There is little paint in putting the two 
oil exploration companies together, 
but little point in keeping them apart 
either. Certainly, Lasmo's desperately 
thin defence document, out yesterday, 
foiled to make the case for retaining 
its independence. Ajtimngh Tafann fras 
improved its finances and manage- 
ment over the past year, there. is no 
room for complacency on either score. 
Moreover, Ta^mn rfiief executive Mr 
Joe Darby was hard pressed to iden- 
tify any special characteristic of the 
group that would be destroyed if 
Enterprise won the battle. 

The bid therefore looks like being 
decided purely on the money. On this 
score. Enterprise's offer is weak. The 
all-paper offer, ori ginally estimated to 
be worth 150p, has dropped with 
Enterprise’s share price. iasrno share- 
holders are also wary of being offered 
special low-dividend shares specu- 
lative w a r rants - a mixture Lasmo 
chairman Mr Rudolph Agnew has 
dnbbed “second-class paper”. It is all 
very well for Enterprise to argue that 
the reduced dividends are no worse 
fharj what t -aerpn shareholders would 
have received anyway. But investors 
naturally want a better deal, not just 
one that is no worse. 

The snag is that Enterprise cannot 
afford to came up with rash from its 
own resources. That would endanger 
dividends to existing shareholders, 
which are at best barely covered as 
tfchy stand. Underwriting a cash 
alternative is the obvious option. A 
dollop of would certainly make 
the offer more palatable but Enter- 
prise’s owners will be concerned if it 
baa to pay thrrmph the nose for the 

nr? ri p r w riting . 

Unilever 

Unilever’s first-quarter figures con- 
tained a number of small disappoint- 
ments. Volume growth has not accel- 
erated from the L5 per cent rate seen 
at the end of last year. Economic tur- 
moil in Brazil has dented profits. 
Interest costs were higher than expec- 
ted, partly because preference shares 
have been refinanced with debt The 
interest charge probably has further 
to rise as Unilever starts to pay more 
on its flnTtar debt mvi receives lnss on 
same £lbn in deposits held in Europe, 
mostly in D-Marks and Dutch guilders. 
Profits forecasts have thus been 
trimmed. 

But these factors do not fully 
explain yesterday’s 5 per cent foil in 


FT-SE Index: 3119.2 (-18.6) 


UhBmr 

Share price retake to the 
FT-S6* AR-Shore Indw 



the shares. Mora worrying is the fact 
that prices across Unilever’s vast 
range of consumer goods are still foil- 
ing in real tarns. True, the price war 
in US detergents which erupted last 
summer distorts the overall picture. 
Year on year comparisons should look 
more favourable from the third quar- 
ter. With Unilever now launching its 
new range of fabric detergents in 
Europe, though, there could be further 
pricing pressure to come. 

Detergent margins are generally 
lower in Europe than in the US, so 
there may be less scope for an all-out 
price war, yet the slanging match with 
Procter & Gamble points to a robust 
competitive response. Despite Uni- 
lever’s best efforts to defend marg ins 
by cutting costs, the threat of instabil- 
ity in frnnfrhpr of EtS main markets will 
cast a shadow over the shares for 
some time yet 

UK gilts 

It would be wrong to read too much 
into gilts’ Tally after yesterday’s auc- 
tion awnniiTiH»m(»nL That was more of 
a technical squeeze thaw a welcome 
for the first convertible issue since the 
early 1960s. The revival is bound to be 
controversial, suggesting a degree of 
pressure on the Bank of England. 
After a surfeit of short-dated issues, it 
cannot easily come back for more. Yet 

the lnng end of the marire* r emains 

too fragile to absorb a large conven- 
tional issue with ease. 

For those with short memories, the 
convertible works likes this. The Bank 
iagiiBs a five-year gilt which can be 
converted at specific intervals into 
king gilts at fixed yields below those 
currently prevailing in the market. 


The new pit might attract institutions 
that are worried about committing 
themselves to long gilts now but are 
also afraid of missing the boat if bond 
markets do recover sharply once US 
rates have stopped rising- The capital 
rid: in buying five-year paper is small 
and they have a chance of acquiring 
long-term paper fit what may turn out 
to be attractive rates later. 

But this all looks too clever by half 
In return for allowing the institutions 
to protect themselves in this way the 
Bank will get its five-year money 
cheaply, but maybe sot cheaply 
enough- Holders will only convert if 
by doing so they can obtain a yield 
hi gher than generally available at the 
time. At that point the borrowing will 
become expensive for the Bank. If it 
really believes yields are too high, it 
would be better off waiting until they 
foil before borrowing long. It would 
look better off still if it had had the 
foresight to raise 25-year money when 
yields readied their floor of 6.4 per 
cent in late December. 

The Telegraph 

The Telegraph's first-quarter results 
provide strong evidence that the UK 
advertising recovery is gathering pace. 
Advertising revenue was up 18 per 
cent on the same period last year and 
is now near the peak it reached in 
1986. Moreover, the Telegraph expects 
advertising to continue rising os the 
general economic recovery becomes 
more established. There is clearly 
scope for growth in display and 
recruitment advertising which are still 
a long way below the 1989 level 

Other evidence confirms the Tele- 
graph story of an insipid recovery in 
1993 being followed by a much stron- 
ger 1994. United Newspapers painted a 
tom»wr picture at its annual general 
meeting this week, while News Corpo- 
ration last week said revenues at its 
UK newspapers had risen 11 per cent 

The pattern of the advertising recov- 
ery has similarities with recoveries 
from previous recessions. But there is 
one important difference this time 
round; during the latest recession, 
newspapers added to their pagination. 
The result was that advertising rates 
fell foster than revenues. The Tele- 
graph’s financial advertising rates in 
its first quarter increased only in line 
with inflation, though revenues grew 
strongly. This suggests the capacity to 
cany advertising built up during the 
recession will continue to moderate 
increases in rates for some time even 
thoug h volumes may boom. 


-4* 








| Stockmarket Growth since 1990* | 

Chile 

up 407% 

Argentina 

up 281% 

Mexico 

up 32396 

Venezuela 

up 524% 

Colombia 

up 1075% 

Brazil 

up 127% 


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value of M. era pal. 1/1/00 to 25/4/94. Stoning wrfbrmnnco. TWO 

^ T tnoome from tnem may fan a* well as rtso and Investors may not got b«s« 
the amount originally Invested. Post performance is not necessarily a guide to the nature changes 
In exchange rates may also affect the value. ruiura- change 


21 *•*- Send on EC2M 4HR. 


r 







FINANCIAL TIMES WEEKEND MAY 14/MAY 15 1994 


WEEKEND FT 


do 


e Hct 


ti**t Survey.' 


tin 



new 


SECTION n 

Arnie Wilson was 
seduced into skiing 
down a remote and 
treacherous slope in 
the Alps . But he 
found himself 
exploring his own 
reserves 
of courage 

I was afraid. Stranded like a 
disorientated mountain goat 
on the edge of a snowy 
chasm, I looked down on the 
most magnificent of the 
Alps. Even Mont Blanc seemed to 
be below me. But I was too fright- 
ened to enjoy the spectacle. Oppo- 
site, spring avalanches thundered at 
regular intervals off the sun-baked 
shoulders and flanks of the mighty 
Meije and its glacier, hi a strangely 
detached way, I knew that one slip 
on this traverse would result in cer- 
tain death. 

I have skied in dangerous places 
before, but this was new. Below me 
- 1 canid not resist looking down - 
was an impossibly steep gulley 
which fell away almost vertically to 
who knows where. I pictured myself 
tum bling hopelessly, down and 
down, bouncing off mu* r-Hff after 
another until 1 reached a frozen 
grave thoraands of feet below Le 
Bateau, next to I* Meije. 

La Meije (13,061 ft or nearly 
iOOOm), with its vast glacial terrain, 
was the last main peak to be 
climbed in Europe. Even Edward 
Wbympar, the first conqueror of the 
Matterhorn, failed to eHmh La 
Meije, which rears up in fearsome 
splendour above the rffrnhing vil- 
lage of La Grave and the spectacu- 
lar Col do Lautaret 
La Grave, in France, is no ordi- 
nary ski resort ft is 7,000 vertical 
feet (2,130m) of ungroomed, steep 
and spectacular terrain whose 
upper reaches are crossed by ice 
walls and crevasses, same af them 
more than 200 metres deep. 

I had come here as part of the FT 
round the world ski expedition, a 
madcap journey on which my cam- 
paqiozt Lucy Dicker, and I are 
sttemptiog. to. ski,swery 4jfcj£l99t 
A guide at La Grave js highly -’ 
desirable. But perhaps not a guide 
who seduces you into exploring 
your own threshold of fear; perhaps 
not a guide such as Olivier Labarie. 
who takes the stronger skiers 
among clients of Ski Peak, a Surrey- 
based tour operator, on off-piste 
adventures. Few, if any of them, 
would relish the situation in which 
I found myself 

ft would be a quick death. 1 won- 
dered what sort of sound 1 should 
maket. A $tream would be ozufignif- 
ied^3P3tt£ would be better. 

I Md spdiod the descent earlier 
in the ^ when Labarie had men- 
tianediMstliancBice, withagfint 
in Ids eyepthat the Pan de Sideau 
(Side Cf flft Curtain) was a "special 
run” which I would enjoy skiing 


Weekend May 14/May 15 1994 



in cafclhfl rocfc fa cea and snow f iekta of the Pan da FBdsau. Ofivfer Latoorie (top right): 1 Bui to push cQents beyond their normal ImMs.' Amie Wlson (below right): It was wonderful to haw emerged unscathed* 

The heights of fear 

‘I knew one slip would result in certain death’ 


With Iwm: 

But was I good enough to ski it, I 
asked him? Would it be curtains for 
me if IfclL "You’ll be OK,” he said. 
"You have a good mind.” 

By that, it turned out, he meant 1 
did not panic. 

“There is only one place where 
you must not fall.” Whenever a 
mountain guide says this to me, a 
frisson of fear chills my spine. 

Yet 1 know from many guided aff- 
piste adventures in the mountains 
that sometimes a short, risky and 
heart-stopping section of terrain is 
the “entrance fee” you must pay for 
the most sublime and exciting ski- 
ing. I had skied with Labarie before, 
a year earlier. So he knew 1 could 
hot resist a challenge. 

But this was more than a chal- 
lenge. This was coming face to face 


with the frww Hem/ms which haunt 
all skiers who mix skiing with 
mountaineering. And this time 
there were just the two of us; the 
supremely fit, confident yoimg 
mountain guide, with everything 
from pulleys and tackle (for cre- 
vasse rescues) to ice axe, prions and 
karabiners in lhs rucksack, and the 
50-year-old, overweight, 
over-ambitious recreational skier 
suddenly beyond the limit of his 
competence. 

From below, I had seen a huge 
hole punched high in the rock face 
beside a vast and steep snowfield. 
Olivier had assured me: “We will 
try to ski in the shade where the 
snow win be fantastic.” The terrify- 
ing traverse on which I now stood 
was above two or three precipitous 
couloirs which merged into a sheer 


gulley hundreds of feet below. 

To get to the Pan de Rideau (not 
that I will ever go again) you mud 
rthnh in deep snow for perhaps half 
ah hour from the Glacier du Vallon 
to the Col des Trifides. From here 
you look down, past a column of 
rock that juts out like a giant finger 
from the col, at what seems to be 
every peak In the Alps. Them you 
see the route Olivier wants you to 
take. 

Sweat from the heat of the climb 
was followed by cold sweat Just as 
a leap of two or three feet seems 
easy when you are only a foot from 
the ground, the traverse from the 
Col des Trifides would, elsewhere, 
be merely awkward. 

“I don’t like the look of this Oliv- 
ier,” I said. “You don’t have to do 
it” he replied. “But it will be all 


right I don’t want to die either.” 
Somehow I could not refuse. 

To reach the curtain, you must 
side-step gingerly down for five feet 
before r eachin g the traverse. Then 
progress is a matter of beating 
down the snow with your skis and 
making a platform before edging 
forward. Every now and then your 
eyes are drawn to the cliffs below. I 
was half way along the traverse and 
becoming more and more apprehen- 
sive when Olivier looked at me, con- 
cerned, and asked: “Would you like 
me to rope you?" 

He had roped me - and the rest of 
the group - last year when we were 
descending the first part of the Viol 
couloir above the French resort of 
Alpe d’Buez, where a fall could be 
fatal. Indeed, the wealthy client of a 
prominent local guide fell to bis 


death there a few weeks ago. 

The two of us were now teetering 
on the brink while he struggled to 
get the rape round my girth without 
either of us falling Then be half 
skied and half climbed to the larg- 
est rock he could find and after 
instructing me to “stay there” (I 
bad no wish to move) began to 
drive in a piton. (It was an old 
Shnond piton worth approximately 
15 French francs Hnf i manufactured 
in the rather more famous ciimhing 
town of Chamonix, I discovered 
later.) 

After a few minutes, I began to 
wish I was on the move again. Any- 
thing was better than standing 
motionless on the edge of the abyss. 
As Olivier hammered, the sound 
was so clear that I thought it must 
cany all the way to Lucy, who - 


armed with our video camera — was 
awaiting our descent in the shelter 
of a huge rot* on the glacier floor 
more than 1,000ft below. Knowing 
chp was watching our drama unfold 
made the whole thing even more 
unnerving. 

Having secured the rope through 
a karabiner, which he attached to 
the piton, Olivier skied back to a 
point where the traverse disap- 
peared into unknown territory 
around the comer. "There’s one 
thing you can do!” he shouted, 
almost as an afterthought. “Double 
the rope up and push it through the 
piton. Retrieve the karabiner and 
then take the loop you have pushed 
through and you can lower yourself 
back to the traverse." 

This was madness. What did I 
know of karabiners - snap-links 
used to connect ropes to pitons, 
which are metal spikes hammered 
into rocks? These were the impedi- 
ments of climbers, not skims. They 
were completely alien and frighten- 
ing to me. They spoke of people 
who actually enjoy being suspended 
over vertiginous drops. Anyway, 
why did he want his wretched kara- 
biner back? Surely it was not the 

Continued on Page X 
FT Round the World Ski Expe dition 
reaches India, Page XVII 





% t » *'=>■ '- 









-CONTENTS 

Fbnw^ Ftunly : Tug of war on 
the Totygjttock market 111 

Trwrak &n'ttafian detour to drive you 
to distraction XX 

Hardening a Robin Lane Fox meets 
a great fsjantsman XVII 



Catalan cooMng, cham pa gne, and hors 
if oeuvres XU 


Bridge GtNNM, Crossword 
FesNcui 

Ftam* ft ths ftmfr 
Food & Drink 
How Td Spanil It 
QomHe Lmmmv 
MuMi 
Jamra Morgan 


XXH.XMV 

xxn 

xxv 

XI 

BHX 

XH 

XIV 

XXVI 


PrimoVlaw' 

Sport 

Mchaol Thooyowttaal 

Trawl 

TV&Radb 


The Long View / Barry Riley 

Forever in your debt 


im 


Prapfrijc Down on the farm 
8ometblug.ia storing XIX 

Arts : tsfefits terribles dance in front 
of Clemnt Crisp XXIV 

Boob^Ualcotoi Rutherford on 

Henry Kissinger XXII 


1 Is inflation really dead? 

Even in Brazil they are 
trying to bury it, with 
the confirmation this 
week that the new 
“real” will be intro- 
duced in July. Yet, this 
is the seventh attempt 
in eight years to stabi- 
lise the Brazilian cur- 
rency, plagued recently by inflation top- 
ping 2,500 per cent 
True, there is a neighbouring prece- 
dent given that Argentina, once a vic- 
tim of hyper-inflation, cut its rate to 7 
per -cent in 1993. The trick has been 
achieved through such measures as a 
peg to the dollar and opening the econ- 
omy to cheap imports. The trouble is, 
this has led to a big balance of pay- 
ments deficit, so the true test vriR come 
when this trade gap cannot be financed. 

For every currency saved, another 
seems to head for the abyss. Turkish 
inflation, for instance, has soared above 
100 per cent as foe economy slumps and 
government finances totter. Last year, 
Turkey was the star of the emerging 
markets but, in 1994, the London-listed 
Turkey Trust (down nearly 50 per cent) 
is living up to its name. 

Our perceptions of low inflation, arise 
from experience in the mature western 
economies, not from the rest of the 
world where currencies continue to be 
debauched as regularly as ever. Eastern 
Europe is a disaster area far believers 
in sound money. In the Group of Seven 
countries, however, average inflation, 
has fallen to 2 J 3 per cent 
In the UK. where the Bank of 
En gland published its quarterly Infla- 
tion Report this week, the retail price 
index also shows a year-on-year 
increase of its per cent up from a freak 
low point of 15 per cent last year. But 
the Bank's RPIY measure of "core" 
inflation, which excludes distorting 
influences such as mortgage Interest 
rates and indirect taxes, is still trending 
downwards and stands at 1 J per cent 
on the latest calculation (for March). 

Why such a low level? Even in the 
least Inflationary years of the 1980s, 
between 1982 and 1987, prices were ris- 


ing at 4.7 per cent on average. But the 
labour market was hammered in the 
early 1990s and international price com- 
petition on traded goods is intense, 
stimulated by ever-increasing third 
world participation. 

The global economy, meanwhile, has 
been at its weakest since the 1980s. 
Growth in the OECD member states 
was only L2 per cent in 1993, and was 
probably negative outside the US. The 
credit-based binges of the 1980s have 
collapsed, to be replaced by the threat 
of debt deflation, a condition in which 
monetary contraction leads to actual 
falls in prices (although only Japan is 
still threatened seriously by such a 
plight). 

Serious economic depression has, 
however, been held off by central banks 
- in the US and Japan, in particular - 
which have propped up their banks. 
Depositors have not lost their money. 
Confidence haw been sustained in finan- 
cial TnatitntirmH - but only at the cost 
of huge public sector deficits. US gov- 
ernment debt has been rising but the 
position is worse in Europe where, 
according to the OECD, net public sec- 
bar indebtedness has risen from 27 par 
cent of GDP in 1980 to 43 per cent in 
1990 and is likely to reach 61 per cent in 
1996, bolstered by figures of 117 per cent 
for Italy and 132 per cent for Belgium. 


W hen economies are 
depressed, these public 
sector deficits can offset 
smoothly the surpluses 
arising in the private sector. Low, 
short-term interest rates will not gener- 
ate excessive credit growth, because 
borrowers are too cautious, but will 
encourage investors to seek higher lev- 
els of income from long-term bonds. 
This week, the Bundesbank actually 
said that one of its motives in cutting 
short-term D-Mark interest rates was to 
reduce the excessive growth of its tar- 
geted measure of money supply, M3, by 
diverting savers into bonds and other 
longer-term assets not defined as 
money. 

So for, the central banks still appear 
to be winning in their efforts to stave 


off financial and economic retrench- 
ment and create a path, to recovery with 
low inflation. Continental Europe, for 
instance, seems to be heading towards 
an economic upturn this year. But have 
the underlying problems been cured, or 
just postponed? 

Certainly, the US Federal Reserve is 
having awful problems in shifting from 
low to “neutral” interest rates. The deli- 
cate bull market in bonds has been tor- 
pedoed, leading to a sharp rise in 
long-term interest rates. In the absence 
of the brutal Impact of a deposit-de- 
stroying economic adjustment, we find 
that US consumption and Japanese pro- 
duction are both too high, with huge 
and destabilising payments imbalances. 
So, the dollar has been wobbling. 

Moreover, as the private sectors of 
the leading economies revive (as has 
happened in the US), the public sectors 
must step back r apidly and all inmate 
their demands on the capital markets. 
Otherwise, bond interest rates will soar 
to still mare unacceptable levels. 

In the short run, there is no genuine 
scare over inflation - even in the US, 
which is furthest along the recovery 
trad, this week’s latest producer and 
consumer price figures were benign. 
During the bond market scares of 
recent months, the gold price has 
moved only sideways, scarcely suggest- 
ing an inflation panic. Some commodity 
prices have been rising, but mostly on 
the bad of the huge pools of specula- 
tive money which are now punting on 
anything that moves. 

For toe longer term, though, the 
infla tionar y dang er obviously remains. 
Although the cost of bailing out the 
private sector last year seemed quite 
low, in 1994 it has jumped. Right now, it 
costs the UK government more than 5 
per cent in real terms to fund its deficit 
through gilt-edged sales, on the basis of 
the Bank of England's projection of 3 
per cent inflation two years out 

That is an unacceptably high cost, 
and governments such as that of the 
UK are eventually going to find it very 
tempting to inflate away the burden. 
Perhaps, after all, we should save some 
of those Brazilian reals for a rainy day. 



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To Hfcliy kratniMs. AO Bn 88. TwMdgs, Wrt. INI 1 GDZ. Engtand. Fw am « 7S4 FImm an) m das of me float Envodg MeMt fuxl. 


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WEEKEND ft 



FINANCIAL TIMES WEEKEND MAY 14/MAY IS »s« 


MARKETS 


London 


Inflation expect a t i o n s tall to shrink 


Focus stays 
on interest 
rate outlook 


Percent 
12 


Andrew Bolger 


B ritish politics may 
have been changed 
utterly by the sud- 
den death of John 
Smith. Opposition 
leader, but the City’s attention 
has remained firmly focused 
cm interest rates. 

The FTSE 100 surged by 3&5 
points on Tuesday, as traders 
got wind of the Bundesbank’s 
intention to cut Germany’s 
leading interest rates to their 
lowest level for five years. 

London followed other Euro- 
pean equity markets up, in 
gpite of a stiff warning on the 
same day from the Bank of 
England that it would not hesi- 
tate to raise UK interest rates 
if expectations of higher infla- 
tion led to an increase in the 
pace of wage and price rises. 

The Rank has some grounds 
for concern. Average earnings 
growth rose to 3.5 per cent in 
February from 3 per cent in 
November, and may have been 
higher in March. 

The chart shows that 
employees' inflation expecta- 
tions remain above the 4 per 
cent level, in spite of the sharp 



fall in hoadling inflating tlw 

key indicator ter pay negotia- 
tors. 

The stockbroker Hoare 
Govett says: “The labour mar- 
ket is tightening only slowly, 
bat Job prospects and security 
should improve as economic 
recovery continues, encourag- 
ing more inflation-plus pay 
deals.” 

No-one expects an increase 
in UK interest rates in the 
short-term, and there may 
even still be scope for another 
small cut However, most ana- 
lysts believe we are now at the 
bottom of the interest rate 
cycle, and the next movement 
will be up - even if it does not 
come this year. 

Much more likely is a small 
increase In US interest rates, to 
support the dollar and prevent 
America’s rapid economic 
growth translating into Hi gh**** 
fnflah'rtn. 

This possibility continues to 
transfix the London market, 
which attracts institutional 
buying when the FTSE 100 dips 
towards the 3,100 level, but has 
been unable to break through a 


Ot- 




is* . •«’ , 

Source QeBup, Ho«r» QowtT - 


m 


so 




82 


93 


94 


ceiUng of 3450 for more than a 
month. 

After Tuesday’s rise, the 
market drifted on Wednesday 
and Thursday. Yesterday it 
closed down 1&6 at 3,119.2 as 
traders again focused on expec- 
tations of a rise In US interest 
rates next week. 

The uneven nature of the UK 
recovery was demonstrated by 
an unexpected drop in the 
manufacturing output figure 
for March, after two months of 
strong growth. However, the 
combined figures for the first 
three months recorded the 
largest rise in output for five 
yean. 

The week's main corporate 
results were also generally 
upbeat J.Satnsbury, the UK’s 
largest grocery retailer, 
announ ced an increase in 
underlying profits, and a stabi- 
lisation Of its profit marg ins , in 
spite of fierce price battles in 
food retailing. 


HIGHLIGHTS OF THE WEEK 


Price 

/day 

Change 
on wreak 

1994 

High 

1994 

LOW 


FT-SE 100 Index 

3119.2 

+13J2 

35203 

30706 

Bundesbank rats cuts 

FT-SE MU 290 index 

3721.8 

-402 

41508 

3721.8 

Focus on btua chip stocks 

BPB bids 

311 

-23 

363 

295 

Competition fears 

British Aerospace 

503 

+23 

584 

390 

Positive analysts’ visit 

British Gas 

301% 

>18 

358 

277% 

Reflet at DTI/Ofoas report 

Johnson Grp Cleaner* 

905 

-67 

1035 

864 

Poor tradfcig outlook at afpn 

Unread 

211 

+61 

218 

95 

Agreed bid from McKschria 

McKechnte 

487 

-25 

539 

448 

Bids (or Unread 

Mere Focus 

1093 

+273 

1138 

795 

Good first -quarter resists 

Pearson 

873 

+41 

735 

605 

BBC Ink-op 

Phoneftik 

380 

-50 

440 

330 

Competition concerns 

Portals 

765 

+130 

783 

513 

Bid approach 

Slsbe 

567 

-25 

630 

559 

Bear accounting stories 

Standard Chartered 

263 

+25 

359% 

224 

Presentations in Sootiand 

UnSaver 

1023 

-51 

1247 

1006 

DuO figures 


Kwik Save, the biggest dis- 
count grocery retailer, was less 
sanguine. Despite increasing 
its interim profits, the group 
said trading was being dam- 
aged by last month’s tax 
incr e ases. It estimated that 
grocery prices were now 3.5 per 
cent . lower than last year, 
owing partly to intense price 
competition. 

Big insurers such as General 
Accident, Commercial Union 
and Royal Insurance all con- 
firmed the steady recovery In 
profits in a sector which was 
dogged by losses between 1990 
and 1992. In spite of an 
improvement in their under- 
writing performance, all suf- 
fered .from a decline in the 
value of their investments in 
both bonds an d equities during 
the first quarter. 

The reco v er y by the banks 
also continued apace, as dem- 
onstrated by the Royal Bank of 
Scotland's achievement of dou- 
bling Its interim pre-tax profits 
and tripling Its earnings. 

Shareholders who fear that 
the banks may only rebuild 
their books in order to start 
throwing the money away 
again in another wave of bad 
loans may be encouraged by 
the Royal Bank's success with 
Direct Line, its insurance sub- 
sidiary which gpnq to the pub- 
lic by telephone. 

Direct Line is already the 
UK's leading motor insurer 
and has nearly doubled its 
share of the household insur- 
ance market since last year. 
The Royal Bank said it had 
injected a further £35m of capi- 
tal in*" the conti nu ed expan- 
sion of the business, which 
nearly tripled pre-tax profits to 
to £40m. 

This success poses a threat 
to the profitability of more tra- 
ditional Insurers and b uildings 


societies, who have long 
enjoyed high commission rates 
in home insurance maHcpt 

Not that the Royal is hostile 
to building societies: indeed 
the hflnjc confirmed It had harm 
Interested in acquiring the 
Cheltenham and Gloucester, 
for which Lloyds has bid 
£1.8bn. George Mathew son, 
chief executive, said be would 
still tike to buy a medium-sized 
society with a “recognisable 
name” in the high street, as 
part of the bank’s strategy of 
diversifying its interests, and 
making earnings less volatile. 

The b rew er s * reporting sea- 
son got off to an unhappy start 
when the head of Vans Group, 
one of the largest regional 
brewers, attacked the govern- 
ment over the “scandal” of 
bootleg imports of beer from 
mainland Europe. 

The S i group 
claimed t hat cross-Channel 
shipments were now naming 
at more than 2m barrels a 
year, equivalent to four times 
the production of Vaux itself, 
which last year sold beer 
worth more than £100m. 

Brewers have been lobbying 
the government to reduce the 
duty on beer to bring it closer 
to French levels. But there 
seems little chance of the trea- 
sury accepting the initial drop 
in revenue which such a move 
would entail 

Grand Metropolitan, the 

intgmatiVmaT d rinks and food 

group, gave the market a jolt 
on Thursday when it revealed 
that de-stocking in the US 
drinks market was likely to 
cost it £40m this year. Appar- 
ently the recovery of the US 
economy encouraged Grand- 
Metis IDV drinks subsidiary to 
stock up last autumn in the 
hope of increased sales. In tact, 
the market fell 


Serious Money 

Robbing Peter 
to pay Peter 

Gillian O’Connor , personal finance editor 


C ity stockbrokers are 
too often mealy- 
moutbfil So, it is a 
pleasure to see 
Credit Lyonnais Laing’s invest- 
ment trust team biting the 
hand that feeds it “Many 
investment trusts are over- 
priced at the moment Buy the 
equivalent »mt trust,” is the 
gist of its message*. The argu- 
ment is compelling. 

Traditionally, most invest- 
ment trust shares have sold at 
substantially less than their 
underlying asset value - 
unlike units in unit trusts 
where the price is pegged to 
the asset value. But a long bull 
market and heavy marketing 
have cut the typical invest- 
ment trust discount from 
around a quarter in tha mid- 
1980s to under 5 per cent in 
February and around 8 per 
cent now. In a few cases, 
shares have actually sold at a 
premium to the underlying 
assets (for example, the Japa- 
nese trusts discussed on page 

m 

The near frliminaHnn of the 
discount has had two conse- 
quences. First, trust shares 
have risen faster than the 
stock market, making it simple 
to sell tiie concept of invest- 
ment trusts to the public. Sec- 
ond, it has been easier to 
launch new investment trusts 
on to the stock market (While 
other trust shares were still 
selling at big discounts, any 
new issue promptly plummet- 
ted.) 

In theory, trust managers 
should be exempt from the nor- 
mal wunnwrp iii pressures on 
new issue promoters. But it is 
easier to poll in money for a 
fund operating in a fashionable 
area of the stock market. 
Hence Laing’s second criti- 
cism: managers la unch funds 
in markets and sectors which 
have the best of their growth 
behind them and are now over 
priced. 

Like its rival, NatWest, 
Tjiing believes that substantial 
investment trust discounts will 
return, sooner or later. So, 


shares in most trusts are likely 
to do worse than the underly- 
ing stock market; and those 
which are still selling at a pre- 
mium to asset value, or operat- 
ing in over-priced sectors, are 
likely to do worst 

We would add one point to 
Laing’s charge sheet however. 
Even if the discount itself 
returns only in a small way, 
many of the newer trusts now 
have a time bomb tick- 
ing away: warrants. 

Free warrants - the right to 
buy shares in the trust at a 
pre-set price for a certain 
period of time - have been one 
of the main baits used to 
encourage investors to buy 
new trust issues. The warrants 
acquire intrinsic value only 
when, the share price rises 
above the subscription price. 
But they tend to be priced 
quite highly by the stock mar 
ket, even when new, in the 
hope that they will in due 
course acquire intrinsic value. 

So, even if the shares of a 
new investment trust droop 
below the issue price, the man- 
agers can point to the market 
price of the warrants and 
argue that the “package" is 
holding its value. What they do 
not point out, though, is that 
the investor is being bribed 
with his own money - or, to be 
more precise, the fixture pro- 
ceeds of his existing invest- 
ments. 

Assume the trust’s invest- 
ment portfolio and its own 
shares do welL This makes it 
certain that warrant-holders 
will eventually take up their 
right to buy shares cheaply. 
So, the net asset value of the 
investor’s existing shares at 
that time will fell because of 
these new Haims on the under- 
lying assets. 

In effect, the discount which 
used to eat Into share prices at 
the beginning of the trust’s life 
has now been replaced by a 
levy later on. And if, in the 
intervening period, substantial 
discounts to asset value have 
again become the norm 
throughout the trust sector, 


there will be a second bite » 
the value of Ms shares. 

Do these Cassandra-like mm. 
Mgs mean that all heddera of 
investment trusts should 


AT A GLANCE 


Finance and die Family Index 

Foreigners keep whip hand in Tokyo 

.bipwiAiw unit busts ... 

m 

VI 

Ttnvnl in»rm» 

vn 

p«vha«ri advisory last In sartas 

..VIII 

Pensions: changing jobs — _ — — « 

- JX 


KaJIfax mortgages 


Grand M etro politan 


5 yewfccad rate, 
% 

11 - 


Share pries rotative tn the 
FT-SE 100 Index 
150 



.93 94 
Saureec FT QropWfc 


Sharp rise in five-year 
fixed rate mortgages 


Rye-year fixed rata mortgages have increased steeply this year. 
The chart straws Halifax's since its first Issue in October 1991. Its 
cheapest five-year fix of 7.20 per cent tn January this year was 
less than Its standard variable rate of 7.64 per cent and a real 
bargain compared to its latest five-year 9.25 per cent fix Issued 
this week. Cheaper five-yea - fixed rates are still available; for 
example, AlHance & Leicester has one at 8.49 per cent. National 
& Provincial, 8.45 per cent and National Westminster bank, 8.59 
percent. 


GrandMet share price blow 


Grand Metropolitan, the international drinks and food company, 
has seen an improvement in Its share price relative to the FT-SE 
100 index skies the end of last year after three years of 
outperformanoe. However, It expects falling demand In the US 
drinks market to cost it £40m this year and the share price fed 
26p to 457p on Thursday when it announced its Interim results. 


Fidelity’s cash withdrawal card 


Fidelity is adding a cash withdrawal card to its cash unit trust, 
which invests In the money markets where banks and other 
financial Institutions tend and borrow. The card is provided by 
Clydesdale bank and can be used in Midland, NatWest, TSB and 
Link cash withdrawal machines. It allows dafty withdrawals of up 
to £200 with no minimum. The card is only available to those 
with £5,000 or more Invested In the fund. Die Initial charge of £5 
is being waived until May 31. 


ProShare conference plan 

ProShare, tiie organisation which aims to promote deeper and 
wider share ownership, is staging a conference with ShareUnk 
for Investment clubs and private investors. The conference will be 
held on Saturday July 16 at the International Convention Centre 
In Birmingham. Tickets cost £30 plus Vat (£25 for ProShare 
members or ShareUnk customers). Details: 021-200 7755. 


Smaller companies 

Smaller company shares continued their downward slide this 
week. The Hoars Govett Smaller Companies Index (capital gains 
verson) fell 0.7 per cent to 174a 84 ova- the week to May 12. 


Next week’s finance and the family 

The importance of pensions transfers is spotlighted by the 
Securities and Investments Board, the chief financial services 
regulator, which wUi produce advice next week to those thinking 
of transferring their pension. Next Saturday we will consider its 
recommendations and list questions to ask your adviser. 


WaU Street 


Jittery traders hang on the Fed’s next move 


I s relief for the belea- 
guered US financial mar- 
kets just around the cor- 
ner? Few on Wall Street 
are willing to make such a 
firm prediction. 

But if this week’s positive 
inflation data is followed next 
week by a well-timed policy 
tightening from the Federal 
Reserve, a floor for US stock 
and bond prices could be 
established that provides the 
foundation for a calmer, If 
somewhat less exciting, sum- 
mer’s trading. 

The April inflation numbers 
may turn out to be the key. On 
Thursday, Wall Street’s ana- 
lysts were expecting to hear 
that the producer price index 
had risen 0.2 per last month. 
Instead, they were told that 
the PPI fell in April by 0.1 per 
cent 

Even excluding the unpre- 
dictable food and energy com- 
ponents, so-called “core" pro- 
ducer prices rose by only 0.1 
per cent, a figure that was also 
below expectations. 

Then, yesterday, analysts 
were looking for a rise of 0.3 
per cent in the April consumer 
price index. They were sur- 
prised to find that the CPI 
advanced by only 0.1 per cent 


last month, while core con- 
sumer prices also rose by less 
than forecast 

Taken together, the April 
inflation data could barely 
have been more encouraging 
for stock and bond investors 
worried that the inflationary 
fires were being fanned by the 
strengthening economy. 

Understandably, the mar- 
kets reacted positively at first 
to the inflation news, with the 
benchmark 30-year bond rally- 
ing 1.5 points on Thursday 
morning - a move which low- 
ered the yield on the issue to 
under 7.5 per cent and pro- 
vided a Ann boost to share 
prices. But the warm glow 
faded quickly and, by yester- 
day morning, both stocks and 
bonds were flat in spite of the 
promtemg CPI release. 

Markets foiled to build on 
Thursday’s gains because, 
once the Inflation data was out 
of the way, investors turned 
their thoughts quickly to mon- 
etary policy and what the 
Fed’s policy-making open mar- 
ket committee (FOMC) might 
decide at its next meeting on 
Tuesday. 

Wall Street knows what tt 
would Uke the FOMC to do; 
put up interest rates one more 


Dow Joms Industrial Average 

4,000 


3,000 — 


3,800 


3,700 


3,600 



ket - mindful of the recent 
encouraging PPI and CPI fig- 
ures - might finally be per- 
suaded to drop its inflation 
obsession, and the apparently 
Inexorable climb in long-term 
interest rates could be halted 
at 7.5 per cent. After a suitable 
period of consolidation, 
long-term bond yields might 
then start slowly coming down 


3£00. 


SouceeFTOnphto 


1994 


Apr 


time as a precautionary move 
against inflation. Hie federal 
foods’ rate - the interest level 
at which banks lend money to 
each other overnight - is now 
3.75 per cent but the markets 
would like the Fed to raise it 
to at least 4 per cent, perhaps 
even -L25. 

At the same time, it would 
be well received if the Fed also 
decided to raise the more 
important discount rate - the 


rate at which it lends money 
to the banks. During the 
recent round of monetary pol- 
icy tightenings, the discount 
rate has remained at 3 per 
cent, but Wall Street now 
would Uke to see tt at 3.5. 

If (and it Is not that big an 
“if* Judging by all the com- 
ments and whispers coming 
out of the Fed lately), interest 
rates are raised on Tuesday or 
soon alter, then the bond mar- 


Lower bond yields would 
help to restore the stock mar- 
ket’s confidence, and a floor 
for the Dow Jones Industrial 
Average, which has fallen 9 
per emit since the Fed started 
raising rates in February, 
could be established at around 
3,600. Investors would then 
start to believe that the Fed 
had completed its round of 
tightenings and that the “cor- 
rection" in financial markets 
was over. 

There is one flaw in this 
rosy picture, however - the 
possibility that the Fed will 
raise rates nod week, but not 
by enough to appease the bond 
market 

A quarter of a percentage 
point increase in the federal 
funds and the discount rates 
would not be enough to satisfy 
bond market investors; and if 


the Fed chooses to leave tfw 
discount rate alone, it could be 
a potential disaster, with 
prices tumbling and long rates 
soaring as investors express 
their doubts about the central 
bank’s anti-inflation rasofta. 

The possibility that tbeFed 
will raise rata by only 25 
basis points is a real one 
because, until file Bundesbank 
cut German interest rateji on 
Wednesday, almost everyone 
believed US rates would from 
to go up by 50 basis pobfisto 
slow down tiie economy and 
support a very weak dollar. 
Bid, in terms of helping toe 
dollar, the German rate cut 
might have done the Fed's 
work for it 

If US policy-makers feel that 
an Increase of 25 basis points 
is all that is needed to keep 
the lid on domestic inflation- 
ary pressures, there could be 
more tronble, not relief, 
around the corner for Wall 
Street 


Patrick Harverson 


Monday 

Tuesday 

Wednesday 

Thursday 

Friday 


3629.04 - 40.46 
3656.41 -i- 27.87 
3629.04- 27.37 
365234 + 23-80 


S ainsbury, according to 
its advertisement cam- 
paign, is “essential for 
the essentials’’. But 
after months of gloom sur- 
rounding the grocery market, 
investors may be wondering 
whether its shares are still an 
essential holding. 

Its detailed but complex 
results statement on Wednes- 
day umd«* the answer to that 
question little dearer. 

The halving of reported pre- 
tax profits from £732.8m to 
£368.8m was misleading, as 
much of it was accounted for 
by amnimHng ' changes. A one- 
off writedown on property val- 
ues knocked £341 -5m off the 
bottom line, and a new, recur- 
ring depreciation charge on 
buildings a further £38.7m - 
after Sainsbury bowed to pres- 
sure from investors to take a 
more realistic attitude to prop- 
erty values and depredation. 

A reorganisation of head 
office and distribution func- 
tions, involving 650 job losses, 
COSt another £28ttL 
Without the charges, pre-tax 
profits would have risen to 
£777m (although that Includes 
a £7m profit an property sales), 
which beat Salisbury’s down- 


The Bottom Line 


How essential is Sainsbury? 


beat prediction in January of 
only a “small’’ rise. 

Nevertheless, the increase 
lagged well behind the 
double-digit percentage 
increases Sainsbury had 
turned In every year for the 
previous decade. 

The problem was not with 
Sainsbury’s other retail busi- 
nesses - Homebase, tiie DIY 
cha in, Shaw’s, the US super- 
market gro\q>. and the Sava- 
ceutre hypermarkets. 

The slow-down was in the 
core supermarket chain - 
which still accounts for almost 
80 per cent of group sales and 
more than 80 per cent of its 
operating profits. The super- 
markets’ (toerating profits rose 
only JL3 per cent in spite of a 
11 per cent sales increase. 

That was the result of sev- 
eral factors. One was that food 
price inflation averaged a 25- 
year low of 15 per cent. Infla- 
tion is, in many ways, the 


J Sainsbury 


Share pries rotatim to the 
Food Retaflere Index 


Food Retailers 

Food ReMara Index relative to 


150 — 



Vvl 

130 : i/“ 

120 J*- — 



/ \r - l 


1 

an 1 1 1 



140 


110 


100 


90 


1890 91 92 93 94 

Source; Dotaatream 


1990 91 9S 93 94 


J go 


retailer's friend, as it means 
the value of stock rises 
between the time it is bought 
and re-sold to customers, 
boosting the profit margin. 

The main factor was the 
intense price competition that 
forced Sainsbury to cut prices 
on 300 own-label lines in its 


so-called “essentials” cam- 
paign. The competition was 
sparked by the growth of a 
new breed of cut-price discount 
chains and moves to lower pri- 
cing by rivals such as Asda 
and Gateway; and, some would 
suggest, the growing surplus of 
floorspace in the grocery' mar- 


ket The campaign knocked 0.4 
percentage points off S ains - 
bury’s gross margin - which 
had been rising steadily. 

The crucial question is 
whether margins will continue 
to fell. David Sainsbury, chair- 
man, insisted they had stabi- 
lised. 

He sold the industry had 
gone through a one-off reposi- 
tioning on margins, akin to 
that in 1977, when there was a 
similar upsurge in discounter 
activity and Tesco launched a 
price-cutting operation. 

Others disagree, Graeme 
Bowler, chief executive of the 
UK's largest food discounter 
Kwik Save, warned the day 
before Sainsbury’s results that 
intense pressures on price 
were here to stay. 

Whether or not margins con- 
tinue to decline, the food mar- 
ket will be tough, and growth 
opportunities for Salisbury's 
core superstore chain limited. 


The group is. however, con- 
ducting the most wide-ranging 
review of its superstore 
operations for many years, ana 
says likely cost savings are 
£65m a year. 

There may be other reasons 
to hold on to the shares. Sabs' 
bury is shifting the focus*® 
expansion on to Its other busi- 
nesses. Moreover, the company 
said on Wednesday it. would 
look at other opportunities in 
the US. 

If it does not make a former 
acquisition there, then 
capital spending expected to 
fell slightly. Sainsbury’s higwy 
cash-generative nature may 
create scope for increasing®® 
dividend. In a difficult man®* 
Sainsbury is further down ®a 
road in terms of dlwrslflcation 
and efficiency than its bigg 
rivals, Tesco and Argyll, own® 
of Safeway. . 

As to whether Sainsbury* 
shares are worth buying. QA * 
price/earnings ratio which 
12 per cent discount to 
market they are becoming 
attractive. Any further wea* 
and they might on# 


neSS, auu uieji 

again start to took essential- 


Neil Buckley 


V 



argues that anyone with trusts 
trading ckwe to, or above, asset 
value should switch. This 
could be costly for private 
Investors, quite apart from any 
gains tax implications. But ve 
do endorse the broker's want 
togs against buying into shasws 
which are trading near asset 
value, particularly those of 
fashionable new issues. 

□ □□ 

How suitable that this week 
was the centenary of tha birth 
of Benjamin Graham, the 
father of investment analysis. 
His sceptical comments on. raw 
issues have been quoted here 
before. Here he Is on warrants: 

“We consider the recent 
development of stock-option 
warrants as & near fraud, an 
existing menace and a poten- 
tial disaster. They have created 
huge aggregate dollar ‘values’ 
out of thin air. They have no 
excuse for existence except to 
the extent that they mtekad 
speculators and investors. 
They should be prohibited Iff 
law. or at least strictly limited 
to a minor part of the total 
capitalisation of a company. 

“...Why. then, are these sub- 
scription warrants created as 
part of the original capital 
structure? Simply because peo- 
ple are inexpert In financial 
matters. They don’t realise 
that common stock is worth 
less with warrants outstanding 
than otherwise.”** 

Happy birthday, Ben. 

□ □□ 

Seven weeks ago, this column 
commended the attractions of 
fixed-rate mortgages at 7.5 to 3 
per cent This week, we note 
that equivalent mortgages cost 
9.25 per cent How satisfactory. 
'The Credit Lyonnais fooest- 
ment Trust Yearbook 1991 price 
£19.95. Details: 071-588 4000. 
**Bertfamm Graham, The Intel- 
ligent truestar: Harper & Row, 
New York. $30. 


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FINANCIAL TIMES WEEKEND MAY 14/MAY 15 1994 


WEEKEND FT HI 



^ete, Foreigners 
' °te r keep the 
'■> whip hand 
| in Tokyo 

:■-> Neil Kerr looks at the continuing 
conflict between bulls and sceptics 

1* tug of war in the most fundamental measures, is 
■ I Tokyo stock market already at least 20 per cent 
I continues. On the one over-valued against the dollar 
A h and are the interna- — were to be forced, even. 
• .7 ‘ tkmal funds, for the most part higher. The depressed export 
‘■■i very bullish, which have sector would be crushed for- 

■ . invested $40bn net so far this ther and the stStfragtle recov- 

- s year (against $30bn in the ery in dtmmgHr ccp snm p ttcp 

whole of 1993X On the other might be unable to withstand 

■ are sceptical domestic inves- this latest in a series of defia- 
>; tors, whet her ind ividual, corpo- tkinary sho cks 

...".'V rate or- tastftntionaL On bal- The optimists, however, see 
._ ™ ance, they are sellers of shares, this currency threat as transt- 
’■:! The conflict shows no signs tory. Hie yen’s 13 per cent rise 
: of an early resolution. So far this year has been «*«w>nti»ny 
- this year, the market’s rise of political, prompted by the 
. -X'j 10 per cent (18 per cent in star- trade dispute with the OS over 
."■y® y ling terms) represents a hand- Japan's enormous current 
some outperformance of all account surplus ($13ibn in 
' t.: •' major' world markets. The for- 1983). But this surplus is expec- 
7 : - > eigners still have the whip ted to decline sharply because 
1 hand. of the yen’s total 25 per cent 

- '-s-' Just how long their nerve appreciation since the begin- 
' s': would hold if the yen/dollar ning of 1993. 

•-.*< exchange rate were to fall - - What is more, despite the 

below 100 for any length of instability of the Japanese gov- 

- '••• Cs time is the big question. That eminent, the bulls taka more 
r .A is because the bulls' main or less for granted that an 

assumption centres on an eco- agreement will be reached with 

■ manic recovery after almost the US eventually. This will 
three years of accelerating involve the much-discussed 

- : - r*‘ downturn Oast year’s rise of a radical deregulation of the 
5 mtunscute 01 pa- cent in gross domestic Japanese market 

domestic product was the (involving greater access for 
- : ’ r worst performance since 1974). American goods and services) 

, The key to recovery is and continued measures to 
. tanestic consumption. Rising stimulate the Japanese econ- 
• 2 ’. real incomes are expected to amy. 

~ support increased consumer Such a progra mme is in the 
spending and residential evident int e rest s of both par- 
7 - investment, while public ties. The alt er na ti ve - a trade 
, f investment remains exception- war which, among other 
; ally strong as a result erf the things, would threaten a cot- 
- government’s previous pump- lapse of the US bond market as 

- priming measures. Conse- Japanese capital was repatri- 
' quently, consensus estimates ated - is almimt animagmable. 

-• of economic growth are edging On this sanguine reading, 
~ up, to around 1 per cent tins Japanese- American accord 
-i year and 2 per cart-plus next, should accelerate the forces 
-1; These.bets would he injtep- already working for a more 
■* t± aidy if' the -yen windy by realistic vahiatfam of the yen. 


FINANCE AND THE FAMILY 



Tdqi’O’sML. 
*40,000 


35,000 

30,000. 


Tlaeit from the soaring Yea 



two m 

flawoaeOamnqm 


Not only is Japan’s current 
account surplus past its peak, 
but the present sharp upward 
moves in US interest rates will 
rtiwi tho capital outflows from 
New York which have so 
undermined the dollar in 
recent months. 

The fact that the US adnrinis- 
tratian is now alert to the pa- 
ils of its undervalued currency 
(and is prepared to put Its 
money where its mouth is) fur- 
ther confirms the bulls of the 
Tokyo market in their eco- 

Timrric fY^ tifViigin 

If you accept the key 
as sumpti on that the Japanese 
economy is in the early stages 
of a sustained recovery, then 
rationalisations of Tokyo’s 
present stock market valua- 
tions demand only a TnndpRt 
suspension of disbelief. After 
the 60 pa cent a so decline in 


corporate earnings ova the 
past three distressed years, the 
historic 1993/M p/e multiple for 
the Tokyo market Is around 85. 
The dividend yield is a shade 
under l pa cent 

Even by Tokyo’s tradition- 
ally exalted s tandar ds, th ese 
are very full valuations, 
whether hi an absolute sense 
or measured against 10-year 
bond yields of 4 pa cent (after 
their rise tfnring the interna- 
tional bond shake-out) and 
three-month interest rates of 
2 14 pa cent Only on a price/ 
cash flow basis, which allows 
for mwh factors as nrnnoHilTy 
large depreciation charges, 
does the Japanese ratio of 10 
look attractive an an interna- 
tional basis. 

Yet the effect of even tenta- 
tive economic recovery an cor- 
porate profits — now an histori- 


cally low proportion of 
national income — could be 
remarkable. This is because of 
the uniquely Wgti operational 
gearing of Japanese compa- 
nies. 

Owing to very high fixed and 
semi -fixed costs, such as 
wages, even small improve- 
ments in will have a mag- 

nified impact on. profits. Such a 
stimulus to s a le s could 
not just from underlying eco- 
nomic recovery but also from 

grea te r mmw»ter y r PlaTfltimi hy 
the Bank of Japan. With an 
annual inflation pf nmtor 1 

per ran* the case for further 
reductions in short-term inter- 
est rates is rumpelling 

Pauline Pong, who runs 
M&G’S fla g shi p japan fond, is 
typical of thn»g» portfolio man- 
agers who see Tokyo as an out- 
standing recovery play. In ha 


view, the potential for strong 
corporate earnings growth 
over the next few years is sub- 
stantial and “likely to have 
haon under-estimated by many 
analysts”. 

Such sgnHment s cut little ice 
with most local investors. 
Their caution to be 

shaped by the continuing psy- 
chological faiu mt from the col- 
lapse of the late 1980s* “bubble 
economy", and its accompany- 
ing devastation of fhi» financial 
system. 

Domestic confidence is 
unlikely to return to the stock 
markftt until the economic 
recovery has acquired tangible 
shape. The beguiling sales 
pitch so popular in the West - 
which focuses on the fact that 
the level of the Tokyo inaito 
is still barely half its 1989 peak 
- still finds few local buyers. 


Small - but 
growing fast 


T he Japanese invest- 
ment trust sector 
is smaE but has been 
expanding rapidly 
this year. A new smaller 
companies trust. Fidelity 
Japanese Values, pulled in 
£105m while a conversion 
share issue by the 
long-established Fleming 
Japanese fund raised £182m 
in February. 

Now, another existing 
smaller companies fund, 
BailEe Gifford Shin Nippon, 
is trying to raise new capital 
and Schroders is launching 
a new general fund, Schroder 
Japan Growth. 

New issues are popular now 
because existing trusts have 
Bostiy been trading at 
premiums to net asset value. 
This means yon pay more for 
the shares than their assets 
are worth, as well as paying 
dealing charges. 

If you buy a new issue, yon 
pay only the issue expenses, 
which rarely amount to more 
than 4 po- cent So, if an 
existing trust is at more titan 
a 4 pa cent premium, a new 
issue looks cheap. 

There are good arguments 

against buying investment 
trust shares at a premium. 
Prenrinms result from surges 
in demand and are, generally, 
short-lived phenomena. 

If you boy a trust at a 10 
pa cent premium, it might 
have dropped to a more 
normal 5 pa cent discount 
a few months lata. Even If 
the fund’s underlying asset 
performance is good, this still 
means your profits are eroded 
by about 15 pa cent 
Becent research by broker 
Credit Lyonnais Laing found 
that Japanese trusts bought 
at a premium underperformed 
the market consistently. The 
firm picked two trusts and 
tnAed them ova a year, 
following any period when 
they were at a p remium . It 
found the share prices 
underperformed hy an average 
of 18.1 pa cent and 9.9 pa 
cent ova the 12 months. 

What, then, do you do if you 
think Japan looks a good bet 
but (a) are not keen on new 
issues and (b) the investment 
trust run by the manager you 
like is carrying a hefty 


premium? The answer is to 
check whether the managa 
aien hat a Japanese unit trust 
under his wing. Most do. 

Schroder, for instance, has 
several Japanese unit trusts 
with a good track record. The 
connection between trusts is 
not always obvious the Save 
& Prospa unit trust is run 
by the same group as the 
Fleming Japanese investment 
trust 

Whm investm ent trusts are 
at a reasonable discount, you 
would generally do better to 
buy than than a unit trust; 
when in v est ment trust shares 
rise much above asset vahae, 
the reverse is probably true. 
Unfortunately, because of 
irvHini charges and dealing 
costs, frequent arbitrage 
between the two is expensive 
fa most private investors. 

Nigel Sidebottom, an 
investment trust specialist 
with broker Gerrard Vivien 
Gray, also warns that it is not 
always easy to tell when a 
bust is at a large premium 
- there is more to it, he says, 
than the basic discount or 
premium to net asset value 
published in the FT every day. 

Most Japanese investment 
trusts also issue warrants 
which, at some future point, 

win makft a gg hgteiiflfl! nail 

on the assets of the trust, so 
dflutingthe entitlement of 
ordinary shareholders. 

Sidebottom suspects that 
the market does not price this 
future dilution lhlly into the 
ordinary shares. To get a foil 
share of the trust’s capital 
growth, you would have to 
buy a combination of warrants 
and ordinary chsirpy 

When the premium for the 
package is recalculated, it can 
be for higher than the printed 
figure would suggest - an 
ostensible 3 a 4 pa cent 
premium can torn oat to be 
nearer 16 pa cent, which is 
too expensive by most 
measures. Thus, Sidebottom 
Is very careful in his choice 
of Japanese trusts, looking 
at new issues in a particularly 
favourable light as well as 
ramsidering the alternative 
of unit trusts. 

Bethon Hutton 

■ JJmt trusts, page VJ 


lext mot 


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-OFFSHORE KEY EXTRA- 
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OFFSHORE KEY NINETY • 
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Over the last few years the of Latin Amerirat haye .; New lUADE Links Economic pacts such as the recent North 

certainly delivered rich rewards. (Mexico), American Free Trade Agreement (NAFTA) between Mexico, the US 

734% (Argentina) and 314% uncommon and Canada are bringing trade benefits to region. 

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OUNT You can invest from as little as 

receive your application no later than 3rd June 
a 1% discount on sums between £1,000 and 
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To take advantage, talk to your financial adviser, complete 
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8ave & Prospa believes that the 
will continue to offer investors high 
same markets can be volatile and 


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DEMOCOACY RESTORED The collapse in recent years 
dictatorships and military juntas has brought democrat! 
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UC PKE OF IMnX, AN3 ANY MCOMe FROM THAI CAN GO DOWN AS VVQ1 AS UP AND YOU MAY 
NOT GET BACK 1HE RJU. AMOUNT YOU INVEST®. REMEMBER THAT Yritl SHOUD REGARD INVESTMENT N 
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THE MAJKETS >4 WHICH TH6 FUND CAN NVEST CAN BE HIGHLY VOIAIRE. PAST PBBORMANCE S NOT A 
GUDE TO FUTURE RETURNS. SAVE & PROSPER OOUP LTD S A MEMBER OF IMRO AN) LAUIRO. 



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FINANCIAL TIMES WEEKEND MAY 14/MAY lg 1994 

FINANCE AND THE FAMILY 


The week ahead 


Bass brew goes flat 


T he results season for 
brewers gets into fall 
swing th« week, with 
fixQ year figures from 
Whitbread ou Monday, 
AHied-Lyons on Tuesday, and 
interim s from Bass on Wednes- 
day. A enr m n n n jg Iflrrfy 
to he that brewing and 
old-fashioned basic pubs are 
still doing badly, while pubs 
relying more on food and lei- 
sure are thriving. 

The worst figures from the 
trio are, therefore, likely to 
enms freon Ra gs , the US’s big- 
gest brewer and also an enor- 
mous pub operator. Against 
£229m last year, pre-tax pro fi ts 
this time could be flat or even 
slightly down. 

Whitbread is expected to do 
better, with pre-tax profits of 
pgr frap fi 9999. m againri £220m 
before exceptiouals last Hrw>. 
Again, profi ts from beer and 

tpnarrtpd pubs -should be down. 

but Whitbread is particularly 
strong on mare up-market, res- 
taurant- type outlets. 

Allied’s figures will take a 
little interpreting since this 
will be the first full year to 
show the effects of its brewing 
joint venture with Carisberg. 
The market will be alert for 
any suggestions that Allied is 
closer to extricating itself from 
the venture which, it has 
hinted already, does not fit its 
overall strategy. 

The actual pre-tax figure is 



Stare price ratitfcra to tto 
FT-SE-A Aft-Star* Index 

120 — *- 


115 — -j 




Sr lain VaBanca, HTs ctakman 


Jon 196ft 
Source; FT Gmfttia 


not a matter of debate since it 
was forecast at £63fen at the 
time of Allied's deal with 
Dcmecq in March. This com- 
pares with £S42m again before 
exceptional the year before. 

Shareholders will be Inter- 
ested to find out how much the 
US Peabody coal dispute has 
cost Hanson, which announces 
interims on Tuesday; estimates 
hover around The con- 
glomerate’s profits figure - 
stripping out the strike costs - 
should be between fSBQm and 
£675m pre-tax, up from £507in. 
But it ia thought the quarterly 
dividend win be held at 2£5p. 

National Power, the UK’s 
largest generator, is expected 
to increase pre-tax profits by at 
least 14 pear cent from 1992-33’s 
£580m when it announces its 


results on Wednesday. Divi- 
dend expectations are around 
JZ2p, against 10. 6p. 

The City will be looking for 
indications as to how the com- 
pany is progressing with the 
potential sale of three to four 
gigawatts of generating plant 
following a deal with the 
industry regulator in February. 
There are no indications erf an 
early disposal. 

Analysts are predicting pre- 
tax profits for British Telecom- 
munications of around £2.7bn 

When chairman Sir Tain Val- 
lance announces its full-year 
results on Thursday. That rep- 
resents a 40 per cent increase 
on last year (£1.9bn). But tak- 
ing account of last year's 
exceptional items, the increase 
comes down to a more modest 


Co mpan y 


DIRECTORS’ SHARE TRANSACTIONS IN THEIR 
OWN COMPANIES (LISTED A USM) 

NO Of 

pony Sector Shares Value di re cto r s 


SALES 

Ash & Lacy 

Bffion 

BLP Group 

Bum Stewart Dfst 

Dickie (James) 

BS Group __ 

Hodder Heatffine 

HuntWgh Technlgy .. 

Lincoln House 

Pandragon 
P*meirion Potteries . 

Read Inte rna tio na l 

Reuters 

Seacon Hokfinga 

SmMMPavid SJ 

Trinity HoUng s 


PURCHASE 

Barlows Prop 

namarfan Pjym — , FdMa 

Cannon SI Invstmts DM 

Soupe Chaz Getwti IAH 

HS8C Bnka 

HTV Group Mtia 

Radius SSar 

Scottish Asian inv InvT 

Secure Retirement — ....BCon 

Tarmac BM&M 


PRELIMINARY RESULTS 


Year 

Sector to 


Earofa gs* DMctanda* 


CbaatartMd Raps. 


CSC biissSnaS That 
DCC 

Drmtan BfasCta 


41200 L 21.100 
280.100 P24J0C? 3 &2 

22JSJ0 t 18300} 2033 
37.400 (WOO L) T7T5 
4270 L (1250 U 
13X45 (10133 636 

22200 (14J80C5 1850 

1540 051U 850 

419 L (MOO U 


Rh*bFW Easton 


fVw-Ji Connection 

Hugtoa(T4 

MSUKSmtiarCa.1W 


SWatwyH 


Urns Products 


nfe 


<6500 L 

man 

- 

H 

- 

FdMa 

0 k 

13300 

naioci 

53 

(43} 

4.15 

hTr 

Mar 

x<as 

Rooa 

153 

D-17} 

15 

Mad 

Dec 

6300 L 

(130Q 

- 

H 

- 

RMG 

Jan 

X140 

H33g 

173 

H 

- 

FMB 

Jan 

1300 

(14701 

545 

53 

P5 

hTr 

Mar 

737 

(973} 

233 

(858} 

23 

PW 

Feb 

6380 

(4.76(1 

14L6 

P14} 

53 

Tot 

Ffe 

2300 

(1300 q 

137 

H 

63 

nfe 

Orc 

130300 

H 

- 

B 

. 

BSC 

Feb 

4.120 

K3TO q 

35 

B 

34 

□to 

Ok 

1350 

pzeq 

33 

B 

<3 

rwd 

Ma 


(732300) 

83 

(ffl5| 

73 

Src 

Mar 

361.100 

097,100} 

313 

(265) 

124 

fW 

Jarrtj 

<7300 

SK3001 

73 

(7« 

43 

□to 

Jan 

11400 

(9300} 

153 

(135) 

85 

BM&M 

Ok 

02 

H02 q 

77 

B 

- 

SopS 

Feb 

6340 

(53iq 2137 

P751) 

731 




API 

Aden 

PPSP 

ESS 

7W 

Deo* 

ArcnfUbar 

EngV 

Apr 

Baartag Power to 

Dto 

Mar 

BtyUaSona 

CM 

Mar 

Charaaa htouaitoiri 

OS8B 

Mar 

ComanrcM Union 

to 

MS 

QtotiUia 

to 

Vs* 

Careiuonay PobBa 

Mad 

Ua 

(towti HxUertL 

to 

Mar 

Oaagov hone Treat 

hIV 

MV 

ted Matopoean 

sw&c 

Urn 

Ctoanbala 

Ertw 

Uer 

Hotore 8 MncfaKt 

Med 

MW 

Hotite Brawny 

Brew 

D«4 

MaftSare 

ReSF 

Mar 

Urn* 


Ma- 

Mtom Focua 

sups 

FW 

MMT 

SWS 

Feb 

Norttan Latin 

LiH 

Feb 

Royti BkK of Soot 

Bar* 

Mar 

Royal hnaanoa 

to 

Mr 

Sbtitowy 

prep 

Mar 

Shel TtiotA Trad. 

oa 

Mar 

Sdtov 

pp&p 

Mv 

TanMnaona 

HaaG 

Ap 



Mar 


RIGHTS ISSUES 


Haadara h to nto ESm via a 1-7 rights laaua of &09m Aares e 165p 
Jonfa Rato bto ton E174m ife a rights tan ft 755m sham 0 230p. 


OFFERS FOR SALE, PLACffiGS & INTRODUCTIONS 


ftaooorita ftadrion Hoktogi b comtog to Da matt mtfi a vftstkn ol apm. E50m 
fttoti Ddpta b to rata EMm wa a ftas eftr. 

Bfttah Pitaihg Ocnpaqr b oonhg to ta rnartiri Min a vditaon of ipprasL S25QnL 

Cams is oomiig to ha marital nth a toution ol between C230-C2fi0m 
Ctalftwta fftipi b cairig P the martat with a ratoaflon a! appm. g90m. 

OS Hattiga b oondng to ta mtaat wffi a ol Diom. 

Dmfay b coming to to iraM mm a mutton of appra. Ban 
Bmoumy RMotiton b to nba E20m vta a sfaa pung. 


Directors’ transactions 


5CXOOO 

86 

1 * 

23.884 

138 

5* 

50,000 

70 

1 * 

300.000 

330 

1 

500 J000 

750 

1 

20.000 

85 

2 * 

13^51 

52 

1 * 

20.000 

97 

1 

102^320 

36 

1 

249.000 

742 

4 

5^)00 

27 

1 

1^60 

16 

1* 

52.000 

274 

1 

100,000 

100 

1 

15,000 

BO 

1 

>^J1 5,000 

6146 

3 

80,000 

45 

1 

30^00 

37 

3 

60,000 

19 

1 

21,500 • 

25 - 

1 

10,000 

71 

1 

10^)00 

13 

1 

45,000 

16 

1 

5.000 

13 

1 

33,000 

19 

2 

250.000 

428 

1 


Timing it right 


\Mua eapraaaad In COOOo. THa Eat cantaina til transaettons, biduting the scardaa of 
options n 3 100% ■Huaquwniy sold, wttn a value over Cl 0,000. Inta oiaBo n relaaaatf by 
the Stock Sc h anga 4-7 May 1994. 

Scuta: Dtactus Ltd, The Mda Trade. Ednburgb 


Tarmac, the construction 
giant, announced final results 
at the end of ApriL The figures 
were dragged down by a larger 
than expected FRS3 loss. Fol- 
lowing ttie disposal of several 
businesses, though, the 
remaining core has been per- 
forming well. 

Sir Anthony Bamford is a 
non-executive director who has 
been notable for his strong 
sense of timing in the past 
Prior to the disposal, he bought 
stock at TOp. His most reoent 
purchase of 250,000 shares at 
171p takes his holding to more 

than 1m 

□ James Dickie, the Scottish 
engineering firm, has seen its 
share price rise steadily over 
the past few years. The pros- 
pects for the group are still 
very good as gearing is 
brought down. The sale by 


Ttvkn MacDonald, 
The Inside Track 


RESULTS DUE 


Compmy 


W» 

_ THbyaar 

i to. 


H 

105 933 


83 (71? 

1X0 (114 


H 

55 fUK| 


S3 (2JJ 
64 (84) 


AMmrStoamSnes EPflV TTurad^r 

W ti l jan i SMOG Tueeday 

■•tap Stratton toTat l nTr Tlnaday 

Baria Hatting* BSC Friday 

b rc rt Wb tor L&H VMral 

ftOWi 3 Anarioan Hra — Med W adn aa dl 

Brfdtii taabari lliti .kiTr Monday 

BriHtii T aM com Tala Ihuraitiy 

CBjr of tan doa PR ..Mad Tluaday 

Dataftrara PW Ruaday 

[k^rto! Korea Tti .hit Tuaaday 

Fwgoaon M Htiga fW TRusday 

Hna Acta [ tom l ngnut RotG Tluaday 

FtaPaoar . HreG llnreday 

Ratting Etaopaan Bodging. — hfR Wadnaad* 
nCOamvan hwaatawntTat — fciTr lluraday 

HartfapoobWatoCo. iVS Itoaday 

BSC “ 

InTr 
BW 
Tim 


37 

P3S) 

- 

B 

53 

(S3) 

- 

B 

13 


- 

H 

- 

B 

- 

B 

133 

(109 

- 

B 

12 

<1-3 

6.15 

(435} 

533 

m 

- 

H 

- 

B 

575 

tM} 

038 

(03) 

- 

B 

15 

(125) 

- 

B 

43 

(US 

- 

H 

- 

H 

- 

B 

45 

(425) 

35 

©5) 

335 

©25} 

=> toss, f Not araet 



BOCOrora> - 

BrtSalt Qas _ 


.Cham Tbaadayf 
.Gaap Ihaattoyff 


'DMdwaia are arawn not pane* par ahare ml are nftuatad far any fcaatvaalng tob. 1 **. 
Fbpom and accn are are n« namaly Hvalatia untt about 8 weafca after tha boari BtoW 11 
aaaprwa pwflrrinaty wnftfcg to quartarty. 4 2 nd mretoly. •* frd Quaritiy 


eredaro Preps, 
aayton. San 
Etropo Mins 
in Shopa | 
Hogg Group 


wwapapar Pi*4 
Southern Ratio 
tomwdte. 


16 

370 

* #+>**** 

117 

140 


- 

15.00 

Burmin 

S3 

5938 

8Mby 

234 

ieut 

178,60 

14503 

SSSS-o 

sea 

613.11 

Unmft 

153 

27 JO 

MoKmM* 

173 

48.62 

Clarmoti 

23 

831 

fttiW 

350 

7830 


S3 

3230 Capttti IMtio 

180 

Mtifena 

2140 

t.’Mem* 

KMBP"1^ a ■ w, 


flic 


in 


2 per cent Strong ewapetitw 
from Mercury and the c«bk 
companies has restricted 
growth. Earnings per share are 
expected to be around 
against 19Ap last year 

Burton. the DK bshfon ntafl 

group which includes such 
names as Debeahams, Ton 
Man and Top Shop, Burton 
and Principles, is expected oq 

Thursday to report an incwn 

in reported pre-tax profits, 
after exceptional items, from 
£30m to about £35m - but a &Q 
in underlying Boufits. As last 
year's figure was after an 
exceptional charge of £lL8a to 
cover the costs erf the more 
towards greater part-time 
working, pre-tax profits will 
actually have fallen. 

First-quarter results from 
British Gas, due on Thursday, 
are expected to reflect tha pro£ 
its’ warning issued by Richard 
Giordano, chairman, at the 
annual general meeting last 
month. He wanted that profits 
were "likely to be at a ghnn B r 
level” to the first quarter last 
year, when earnings wen 
£650m. Analysts expect that a 
continuing loss of market 
share in the mainly commer- 
cial segment above L500 
therms to independent gas 

marketers will of&et any bsie- 
fits that would normally be 
expected after a particularly 
cold winter. 


* , Atf * 

. , . ^ 


Joseph Grimmond, the chief 
executive, of such a large 
apimmt of stock baa a special 
explanation. The group felt it 
lacked institutional sharebrifl- 
ere and was keen to benefit 
from the support that they can 
taring. Accordingly, Grimmond 
sold what amounted to 7.8 per 
cent of the stock to M&G 
Group. 

□ Trinity Holdings mah* 
components for fire engines 
and rubbish trucks. It 
announced good final results 
at the end of April and the 
share price has been outper- 
forming the market. Three 
directors have sold stock 
recently. The largest sale, by 
rhaimuin Geoffrey Hollyhead, 
was made for domestic rea- 


:j take- ol 




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ft 


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J*«_ 

u, n 


FINANCIAL TIMES WEEKEND MAY 14/MAY 15 1994 


WEEKEND FT V 


FINANCE AND THE FAMILY 


Where your money goes . . . unit trusts 


true costs of investing 


COST CHECK _ 

If you cannot choosa between different functe, charges coufci 
be the decking factor. Hero Is a cost comparison list 

Fund A Fund B 


U nit trusts can be a cheap 
way to boy investment 
expertise and spread 
risk across a range of 
shares, especially where mail sums 
of money are concerned Investing 
directly in shares can be expensive, 
not least because of high minimum 
< dealing costs* But unit trusts should 
cost less than direct share Invest 
ment because of the economies of 
1 scale which fund managers have. 

■ The basic charges 
■ When the money is not working for 
you, here is where It goes. The 

anim al manag ement charge is the 

easiest to spot It can be as low as 
05 pea: cent (for some indexed funds 
■and bond funds) or a more typical 1 
to 15 per cent - and, occasionally, 
more than 15 per cent 
With a L5 per cent charge, £15 
will be deducted for every £1,000 of 
the value of your units once a year. 
In practice, a lower charge could be 
deducted more often - for example, 
half the annual charge twice a year, 
or aneJ2th every month. 

The initial charge is more compli- 
cated It is, typically, 5 to 6 per cent 
of the money yon put into the trust. 
On an investment of £1400, there- 
fore, the charge would be £50 to £80. 

Around three percentage points 
fle, £80 of that £50 or £60) might be 
used to pay commission to the 


Th« government is taking the lend fen forcing financial companies to disclose their .true costs. 
Hlgia charges nibble away your profits and they are not always easy to spot unaided. 

Low charges will never make up for a bad Inv estment performance, but high charges can 
seriously damage even a good Inve s tment perform an ce. Our new series shows you how to 
check out the coats before you have tied up you* money. We explain: 

■ What aO the different costs are. 

■ What the standard cha r ges ere for different types of Investment. 

■ Where to find the figures you need. And we provide a cost check-list for your owe use. 
Wo wffl be covering aU the major types of In v e s tment: unit trusts. Inve stm ent trusts, 

pereonal equity plans, shares, Dfo Insurance and pensions. 

The series begins this week wtth unit trusts. Next week, we cover investment trusts. 


intermediaries who sell the trust. 
For this reason, the initial charge Is 
the one cost yon might be able to 
reduce. 

If you buy units through a com- 
mission-based adviser, you can try 
to negotiate a cut in the commis- 
sion he takes - which would leave 
more money to buy unity- Similar ly. 

you might be able to negotiate a 
reduction if you buy direct from the 
management company. The more 
you have to invest, the more ehanw* 
of success in negotiating a reduc- 
tion. 

The bid/offer spread is a better 
way of measuring the initial costs 
of investing than the quoted initial 
charge. You bay units at the offer ■ 
price and sell them at the bid price. 
'Hie difference between the two is 
the spread, which can vary greatly 
from one type of trust to the other. . 

The spread includes the initial 
charge. But while that might be 5 


per ceit, the spread can be higher - 
perhaps nearer 6 per cent, or more. 
This is because, on top of the initial 
charge, the fund manager adds the 
dealing costs which he incurs when 
buying and selling shares, Including 
the spread on the underlying 
shares. And the unit trust spread 
can get slightly wider or narrower, 
depending on market conditions. 

There is another complication. 
Bid/offer spreads are allowed to 
move within a broader range of, for 
example, 8 per cent: in other words, 
the maximum permitted offer price 
could be 8 per cent higher than the 
minimum permitted bid price. So, 
the buying price could be at the top 
of the overall 8 per cent range, with 
the selling price 6 per cent lower; or 
the selling price could be at the 
bottom of the overall range of 8 per 
cent, with the buying price 6 per 
cent higher. 

Fund managers will move to the 


Lower end of the range If lots of 
investors are selling, but go higher 
if there are lots of buyers. 

■ New charging structures 
Unit trusts are restricted in how 
they can charge investors. But the 
rules are uniter review, and it is 
possible that a single pricing struc- 
ture could ' be introduced soon. 
So-called single pricing might not 
save investors any money, but it 
could make it easier to spot the 
charges. 

- Meanwhile, some management 
companies have found ways round 
the unit trust rules by experiment- 
ing with Pep charges. The main 
Innovation, first .brought in by 
Fidelity, is to reduce the initial 
charge to around 2 per cent but to 
add an exit charge if you cash in 
early. Fidelity charges 3 per cent in 
year one, reducing to 0 per cent in 
year four - so loyalty is rewarded. 


■ Bow to find tiie charges 
You should he able to find details of 
charges in nates leaflets. Sometimes, 
though, they may he buried right at 
the back of a leaflet among the 
small print 

. Bid/offer spreads also are more 
likely to be found there. It is proba- 
bly wise to ask an adviser or the 
management company what the 
usual spread has been. Find out 
also, the extent to which the spread 
haw moved within the broader per- 
missible range. 

The prices’ pages in the Financial 

■ Times give bid and offer prices as 
well as cancellation prices. These 
are the lowest bid price allowed tak- 
ing account of the trust's assets. 

If cancellation and bid prices are 
the same, the spread is at the bot- 
tom of broader range. Sell- 
ers will be getting the lowest possi- 
ble CWftb- i 11 price for their Tmite , but 
buyers will get relatively cheap 
units. 

■ The effect of charges 

Take two funds, Gartmore British 
(h-owth and Gartmore UK Equity 
Income, in which £10,000 was 
Invested five years ago. The annual 
charge is L5 per cent each. Assum- 
ing ah dividends have been re-in- 
vested, the value when we did our 
test was: 

G Five years zero charges: British 


Dote : 

Offer prica 

Bid price , , 

Immecfiafa bid value of £1400 _ 

Bktfofler spread % 

Maximum praatote difference 
between bid and offer prices 96 
How has the spread actuary 

moved within this range? 

Initial charge % 

is commission negotiable? 

Annual charge % . 

Exit charge % 


Growth £24J270;UK Equity Income 
£18462. 

□ Annual charges, but no bid/offer 
spread (offer to offer basis): British 
Growth £22590; UK Equity Income 
£17530. 

□ Actual returns (offer to bid 
basis): British Growth £21400; UK 
Equity Income £16500. 

The managers of these funds 
would need to increase the value of 
investments by around 65 per cent 
for the investors simply to get back 
the money they invest. 

How long it would take to reach 
that stand-still point depends very 
much on how fast markets are ris- 
ing. 

■ Do costs matter? 

Same people argue that costs are 
irrelevant What counts is perfor- 
mance. Choose fund managers who 
put more money consistently into 
the bands of their unitholders. It 


does not matter that they may also 
be malting more for themselves 
along tire way. 

In practice, though, charges can- 
not be ignored completely. The 
higher the charges, the greater the 
ginT) a manager needs to turn in a 
decent profit And if you end up 
holding the same fund for five to 10 
years or more, initial charges may 
have less impact on the overall 
return thaw the annual charge. 

Certainly, if you choose an 
income fund because you want 
income (and do not want to re-in- 
vest dividends), think twice before 
pJinndng rip p with B high animal 

charge 

Consider, too. that even if a fund 
rises in value, investors get the 
same amount of money in their 
hmite whether 3 per is tei»»n 
off at the beginning or *b« phH 

Anthony Bailey 


New issues 


3i takes off 


T he flotation of SI, the 
UK’s la r g est venture, 
capital supplier, as 
an investment trust 
is now firmly on the lanndi 
pad, writes Richard Gourlay. 

The group said a quarter of 
the shares H is selling in the 
planned summer flotation are 
Hkdy to be made available for 
private investors. The- high 
street banks and the Bank of 
England, which own 31, are 
likely to sell only about a 
third of the equity for about 
£500m. ■ 

Details are still scarce ahead 
of the publication of a path- 
finder prospectus later, this 
month and the pnbH&Joffer by 
the end-«f June. But the* price-: 
• iff fflddy to be based' on a dis- 
-caunfc to the net asset value 
due. to- be published with 
annuat results later this 
mootibu 

The flotation will be not 
only the largest but one of the 
most interesting new issues 
AvaflaUe.to private investors 
this year. 3i will provide one 
of the few ways for individuals 
to Invest in a relatively liquid 
' way ina weD-diversifled port- 
folio of unlisted companies. 
The group provides equity, 
debt and mezzanine finance to 
unquoted companies seeking 
expansion capital, funds for 
management buy-outs and 
tray-ins, and start-ups. 

Earlier this year, 8i also 
started man a ging and invest- 
ing flonds provided by other 
financial institutions. This 


will increasingly provide 3i 
wtth fees,.raishig its return cm 


Investors are being offered 
another slice of London prop- 
erty. But file unusual feature 
of the intermedlaiies’ offer for 
shares in CLS Holdings is that 
those i n terested can buy in at 
15 per cent below the esti- 
mated value of the company, 
writes Simon Davies. 

CLS is a property invest- 
ment concern with a 10-year 
trade record. Bun by the two 
■ lfortstedt i brothers, who 
switriied«wm Swedish to Brit- 
‘dshj properties early In the 
1980s, H made an astute call 
<m the market in 1989 and was 
able to gear up investment at 
lower prices last year. 

- The company is offering 
45.04m new shares at lllp, 
representing 46 per cent of the 
company, at a value of £50m. 
But q. maximum of half of 
these shares are on offer 
through intermediaries. The 
shares offer a notional yield of 
55 per cent at the issue price. 

Most of the company’s prop- 
erties are within the M25 and 
are forecast to provide net 
rental income of £25m in the 
present year. Pre-tax profits 
should reach £8m. 

The issue is sponsored by 
UBS and Apex partners and 
applications must be in by 
noon on May 23. Trading 
should start on May 27. 


geg 


INTERMEDIATE CAPITAL 
GROUP PL C 


Intermediate Capital Group 
is the leading independent 
arranger and provider of 
intermediate, or mezzanine, 
capital in the UK and 
Continental Europe. 


Investors who would Eke 
farther details, please call 





<m< \ ■:■■■ ..'1 




* 


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• V 

i. -- * 


Enhancing skills by exploiting technology. 

It’s led one company to invest in the right people, working wtth the most advanced 

SYSTEMS, TO M AN AGE MONEY BETTER TOR THE LARGEST PENSION FINDS AND PRIVATE INVESTORS. 

When a leading edge 

IS WHAT IT TAKES 



MBRCUKY ASSET MANACBlOT pis 


BRITAIN’S LEADING INVESTMENT HOUSE 


AMEUBEBOPlMRd 






3 3* 


y. 1 WEHK£Nn FT 


FINANCIAL TIMES WEEKEND MAY 14/MAY 1$ I9frt 




S' 

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FINANCE AND THE FAMILY 


The strange story of 
Japan’s unit trusts 


John Cuthbert analyses the reasons for a market phenomenon 


Table A: How funds perforin In 

bull and bear marfceta 


Loss 


Gain 



Return 

Loss 

return 



29/12/89 

pore- 

177/92- 

Pere 


-30/6/92 

rank 

28/2/94 

change 

■ SMALL CAP FUNDS 

Schroder Japan SmBr Cos 

-2241 

i 

44 

+43 

Dunedto Japan SmBr Cos 

-24.30 

5 

13 

+3 

NM Japan Sndlr Cos 

-4G.11 

26 

89 

+83 

fidelity Japan SmBr Cos 

-3855 

19 

32 

+12 

fnvosco Japan SmBr Cos 

-45.75 

68 

19 

-49 

MSG Japan SmBr Cos 

-4555 

50 

15 

-35 

SaveSProsper Jap SmBr Cos 

-45.00 

50 

82 

+32 

Average 

-3750 




■ GROWTH FUNDS 

Perpetual Jap Growth 

-28.40 

S 

IS 

+10 

Stewart Ivory Japan 

-2757 

6 

60 

+54 

Gartmore Japan 

-3650 

16 

8 

-8 

Schroder Tokyo 

-3953 

27 

11 

-18 

Prov Mutual Jap Growth 

-35-96 

IS 

5 

-10 

Confederation Japan 

-38.82 

31 

36 

+5 

James Capel Japan Growth 

-37.73 

32 

34 

+2 

Allied Dunbar Japan 

-45.17 

56 

3 

-53 

Thornton Japan 

-4052 

27 

48 

+21 

Average 

3650 




■ TECHNOLOGY and SPECIAL SITN FUNDS 



Ktefriwort Benson Jap Spec 

-43.11 

37 

31 

-6 

HH] Samuel Japan Tech 

-42.49 

34 

44 

+10 

Barclays Uni Jap Spec Sits 

-38.76 

21 

27 

+6 

Average 

-415 




KEY> The table compares total nUum performances far dm lop quMfla o! risk-aeBUstad 

return tends over tno tistoct penocta 

- one ctsusoinad gab. and ana afausUned loss. 

Tho potvandkC tank of each fund's loaa and gain tetum am shaam In ctritana three end 
(our mspecbv&y from the hat The penxn&e rank expresses eech tencTs portion h ds 
Mcftr as a proportion of fOO wtara ttotap tend la 1 and dm bottom Is 100. This makes 
h easier to see quartSa feats of 2$) mi deeds {units o! rt? poa&ona. Ttm pamsndh rank 

ot Me Japan SmaOer Companies crash toss at 26, far instance, says that d la In tho top 

26 per cent, namely, just outride dm log quanta @5 per candor third deeds. Changes h 

peruertte tank hx'ffm loss end gain nuns redact the ratathre strength at each 
manager's loss and grnwdi management pettuinunco; that la rateftna to dm oectorelso. 

Totol returns: HSW. AM caksdetions: JJ*. Cuthbert. 





Trusts did well overall, 

Growth (96) 




S omething extraordi- 
nary happened in 
the Japan unit trust 
sector over the past 
five years. Since 1989, the sec- 
tor has - on the face of it - 
outperformed foe Tokyo Stock 
Exchange (TSE) index regard- 
less of whether the Japanese 
market rose or fell (see top 
chart). No fewer than 60 of 62 
Japan trusts beat the TSE over 
the period. 

How has this happened? 
There are three reasons. 

■ First. Japan funds have 
done better since 1989 for the 
simple reason that they did 
less well previously. 

Between 1966 and end-1989. 
Japan unit trust managers 
avoided the highly-valued fash- 
ionable plays - so beloved by 
the locals - that lifted the TSE 
to a new high. When the crash 
hit Japanese market at the 
end of 1989, the highly-valued 
high flyers that had driven up 
the TSE precrash became the 
laggards which then dragged it 
down. 

Avoiding these types of 
stocks had led to under- 
performance for Japan funds in 
a bull phase. Now, it meant 
outperformance in a bear mar- 
ket Over the 30 months the 
crash lasted, the average Japan 
fund fell 45.6 per cent against a 
fell in the TSE of 58.6 per cent 
■ Second, a lot of Japan fends 
have taken considerable advan- 
tage of the high returns from 
the burgeoning over-the- 
counter (OTC) market in small 
capitalisation stocks. 

Japanese investors usually 
ignore these. But in a market 
where the average earning *; of 
large cap stocks have fallen 
four years in a row, it is sur- 
prising that the positive earn- 
ings of small cap stocks have 
moved more to centre stage. 

The feet that small cap expo- 
sure of Japan funds has risen 
dramatically, and fund returns 
with it - the average discrete 
total return of the eight Japan 
small company trusts with 
five-year records to February 
28 1994 (79.27 per cent) is 
almost twice that of the 48 
growth fends (40.9 per cent) 
over the same period - says 
much about why a perfor- 
mance comparison of the 
Japan sector with the TSE, an 
essentially large cap index, can 
be Biislaailnig 

■ Third, and most important, 
is that any reading of the past 
five years of performance his- 
tory is dominated by the 
effects of the 198992 crash. . 


Yet, it is quite dear from our 
top chart that the past five 
years have covered two quite 
different periods of perfor- 
mance - one of sustained loss, 
the other of sustained gain. 
Decoupling these provides a 
very different picture of perfor- 
mance altogether. 

The bottom chart shows the 
sector’s performance relative 
to the TSE from the beginning 
of the period of gain at the end 
of June 1992. This time round, 
the sector has underperformed 
the TSE, rather than the 
reverse. 

This fi n din g has two impor- 
tant implications. First, it 
warns investors to be on their 
guard. It is all too easy for 
most established Japan fends 
to puff up their five-year per- 
formance by ngfag a cumula- 
tive performance chart relative 
to the TSE, as we did at the 
start of this article. 

Normally, this would be 
acceptable. But when virtually 
the whole sector has beaten 
the TSE - something which is 
not normal - Own it becomes a 
highly devalued meter of per- 
formance assessment. Then 
again, our reading of Japanese 
investment history suggests 
that placing equal emphasis 
upon loss management, as well 
as upon total return, is of spe- 
cial importance in judging the 
performance of Japan unit 
trusts. Moreover, having two 
periods of markedly different 
conditions - one of loss and 
one of gain - provides us with 
a robust means of testing if 
Japan fend managers have all- 
weather managerial ab fl it ie S- 

Look at Table A Here, we 
have taken the upper q uar tfle 
of the sector on a five-year, 
risk-adjusted retain basis and 
then split it into its individual 
investment orientations - 
small cap, growth and techool- 
ogy/special situations - to 
allow better performance com- 
parisons. 

Column 1 of this table shows 
the negative total return, or 
crash loss. Column 2 shows the 
percentile rank of each fund’s 
crash l os s (1 is the highest and 
100 the smallest) 

Column 3 then shows the 
percentile rank of each fund’s 
total return - this thna , a gain 
- from the end of the crash 
period to the end of February, 
1994. The final column, percen- 
tile change, illustrates the 
degree to which a manager has 
been better at managing 
growth or loss relative to the 
rest of the sector. 


Table Bz Pick of the crop 





nek 

Rak 



Year 

Total 

Bench- 

relative 

Descrip- 

Bisk/ 



Behan % 

mark 

to sector 

Sen 

Behan 

■ GROWTH FUNDS 





Perpetual 

1989 

54.16 

4851 




Jap 

1990 

•858 

1651 




Growth 

1991 

-2.17 

2058 





1992 

1657 

555 





1993 

54.44 

16.74 


Below 



Total 

10753 

752 

089 

average 

055 

Stewart 

1989 

157 

1A92 




Ivory 

1990 

-052 

2357 




Japan 

1991 

154 

1255 





1992 

1452 

25 





1993 

4054 

3.14 


Betow 



Total 

7356 

4.78 

054 

average 

018 

Gartmore 

1989 

1068 

1853 




Japan 

1990 

-5.06 

19.43 





1991 

-755 

356 





1992 

18.79 

757 





1993 

55 JS 

18.05 


Below 



Total 

7558 

459 

089 

average 

0.17 

Provident 

1989 

-105 

-255 




Mutual 

1990 

-2.82 

2157 




Japan 

1991 

054 

11.85 




Growth 

1992 

2352 

125 





1993 

53.16 

15.46 





Total 

68.15 

453 

n m. 

Average 

0.15 

Tokyo 

1989 

-755 





Stock 

1990 

-24.49 





Exchange 

1991 

-1151 





Index* 

1992 

11.72 






1993 

37.7 






Total 

1558 

1 

1 


0.03 

N SMALL COMPANIES FUNDS 




Schroder 

1989 

7054 

4950 




Japan 

1990 

354 

2756 




SmaS 

1991 

■353 

554 




Cos 

1992 

■056 

259 





1393 

5554 

14.44 





Total 

11356 

354 

055 

Average 

024 

Dunetfin 

1989 

46.1 

2458 




Japan 

1990 

-2.78 

2254 




Smaller 

1991 

6.06 

1753 




Cos 

1992 

1156 

14.91 





1933 

4959 

7.73 





Total 

11351 

353 

1 

Average 

023 

Tokyo 

1989 

2152 





Stock 

1990 

-2552 





Exchange 

1991 

-1157 





Small 

1992 

-2.95 





Cap 

1993 

4150 





Index* 

Total 

32.04 

1 

1.05 




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Mm. Hah la ^ *-» "• tnmmrf mm toy IM a — "/ MM * *f III ll 

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tha sector Osfwm at 803. HMmtm Jr om u twatan of each kaaft mran ge monthly lehen by dm 
a tandan l d mriet k a i at thorn monthly retun*. The higher dm riahtiebwn Ogam, dm batm dm 
perientmten. M cdnJW to ni. ' JL P. CudrbeA 

* Capital ndum only, no income ra-knastad. 


The conclusion based on this 
table is quite differ en t to that 
derived from a comparison 
with the TSE. Far from making 
the whole sector look good, 
this approach finds only four 
funds - Dunedin Japan 
Smaller Companies, Perpetual 
Japanese Growth, Gartmore 
Japan and Provident Mutual 
Japan - which have displayed 
top-quartile performance in 
both periods of loss and gam. 

Furthermore, the overall per- 
formances of many funds are 
dominated by an outstanding 
outturn in only one field. In 
simple terms, most managers 
tend to be better at managing 
one thing rather than another. 

Two farther fends deserve 
recognition. Although their 


total returns in the gain period 
have been fourth and sixth 
decile respectively. Schroder 
Japan Small Companies and 
Stewart Ivory Japan are among 
the very best when the returns 
are risk-ad} usted (see table B). 
This is no surprise; they are 
two of the top four loss return 
funds and have displayed high 
consistency relative to the 
TSE. 

Finding the best-performing 
Japan funds is fell of pitfalls. 
At first lode, investors appear 
spoilt for choice. But whotaale 
outperformance of fee market 
indpy is a sign that something 
is wrong. 

In any one sector, expect to 
find only a hanftfe l of funds 
that deserve your attentions. 


So you want 
a 1 0% return 

Michael Dyson explains how 



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US 








T he mail-shot headline 
offered “10.03% paid 
annually, free of 
basic rate of tax, until 
the year 2000”. Such a promise, 
together with “Backing Assets 
of a Triple A-rated bank” 
sounded the perfect answer for 
investors wanting high income 
from a low-risk investment. 

Sadly, this insurance “bond” 
(as the marketing men insist 
on calling their products) is 
linked to fee performance of 
the FT-SE 100 index for deter- 
mining how much capital is 
repaid in fee year 2000. If the 
FT-SE 100 growth is 0 per cent 
a year or negative, investors 
will lose 75 per cent of their 
original investment (a loss of 
almost 15 per cent even if you 
add back the income received). 
In order to receive fell repay- 
ment of your capital, the FT-SE 
100 gr ow t h must be 449 to 949 
per cent a year. 

So, is it unrealistic to expect 
10 per cent a year and reason- 
ably safe capital? The answer 
is that it is remarkably easy, 
and within the reach of most 
private investors. 

The plan in the following 
example can. be created 
through any broker or share 
shop, and should return 10 per 
cent a year in addition to a 
final repayment of around 95 
per cent of starting capital. 

A greater loss could arise, 
but is unlikely nnips$ markets 
are about 30 per lower than 
present levels when you want 
your income. The only caveats 
are that you need to have part 
of your annual capital gains 
tax allowance (now £5,800) 
available each year and take 
care with bed and breakf&t- 
ing. 

Suppose you have 05,000 to 
invest You buy six separate 
zero dividend preference (ZDP) 
shares wife wind-up dates on 
consecutive anniversaries (or 
as close as possible). These 
shares are issued by split capi- 
tal investment trusts which 
have p re -determined wind-up 
dates on which all the assets 
are sold and the shareholders 


repaid. The ZDP Investors 
receive no dividends from the 
trust but normally have a first 

charge over the assets up to a 

p re-determined repayment 
price, substantially hi g hl y 
than the issue price. . 

So, a capital gain is virtually 
certain for anyone bidding to 
redemption. The point of the 
plan is to buy shares wife stag- 
gered redemption dates which 
can be redeemed in turn to pro- 
duce your "income”. 

Present tax legislation 
means that because there are 
no dividends, there is no’ 
income tax liability, although 
the CGT liability becomes pay- 
able on redemption or disposal. 
Both your annual “income" 
and your final return of capital 
will produce taxable gains, 
albeit reduced by indexation. 
Larger holdings will benefit 
from some prudent bed and 
breakfasts on the main hold- 
ing. 

The number of shares 
bought should be the amount 
required to create an annual 
repayment for the desired 
“income” - In this example, 
£1400. One of fee Investments 
- fee one which Is redeemed 
last - should be large enough 
to repay 10 per cent plus as 
much of the original capital as 
possible. (In our example, you 
get 97 per cent of your starting 
capital bade but should allow 
around 2 per cent for 
expenses). 

And that is all there is to it 

For the purpose of this 
article, we chose the six shares J 
that best match the described 
insurance product, but fee 
takeover theory is extremely 
fieri h ie en d can offer many 
alternative arrangements - 
such as escalating income, 
income holidays or a different 
time scale. In addition, all or 
part of the plan may be sold 
before maturity, subject to 
market conditions). 

■ Michael Dffson is a director 
Of BZW Capital Markets. This 
is a market-maker and cannot 
deal direct with private clients. 





NEW UNIT TRUST LAUNCHES 


(Tatophonaj 


Soar 


Tagtf RS Sotags - Owgaa umm PB> - iMran - Cbagn fartta FB> - M i n toru 

Grow PS* Schema HU hwM Other kmt WU Jnu* Other hot. Decant 

YWI U Ml R * % £ % % % t % 


■ Duncan Lawrie UK Smaller Companies Fund 

Duican Lawrie (071 235 5534) 

UK Smater Companies 1 Yes No 555 155 Pto 1400 nfe nfe nfe an f 16/5/94-27/584 

Tbs first unit trust launch by this private bank, the manager is Thomas Watford formerly smafier companies find manager at John Govttt 

■ Latin America Fund 

Save & Prosper (0800 282101) 

toteraatfcwd growth 0 No YW 55 15 No 1400 nfe n/a nto nfe 14/5/94-3/6/94 

Hot on the heels of the launch last year of two SSP far East funds comes this. Regtond emerging market funds are riskier than global ones 

■ Exoter Pacific Growth Raid 

Enter Fund Managera (0800 607807) 

Far East Inc Japan 0 No Yes 55 15 Ho 1.000 nfe n/a rife n/a $ 4/5/94-27/5/94 

Exeter specialises In investment through Investment trusts and wB use dos ed end funds for Its first regional int trust Same caveat as above. 

■ Hypo Foreign & C olon i al J apanes e Growth Fond 

Hypo Foreign & Colonial (071 454 1434) 

Japan 0 No No 5% 15* No 1500 n/a n/a n/a n/a 

Aiming for tong-term capital growth as the Japanese economy recovers, and buying in wWe share prices are stOI tow. 


1% 22/4/94-16/5/04 


flnitn] charge reduced to 4.25%. ** Initial charge reduced to 4.5 % on £t, 000-52.999 and to 35% on £3,000 and above. $ Initial charge 45%. 


HEW INVESTMENT TRUST LAUNCHES 


Targets — 


— Outride FB> Inridi PB* — 


Managr (Triaphont? 


ameer 


sue 

Em 


PB> Barings 
Otal? “ 


m 

p 


tom. Chape tent manga 
£ % £ * 


■ Fleming Indian Investment Trust 

Fleming (071 382 8989) 

Smffil NSW Court Emerging Mkts 15 100 nfe No Yes lOOp 96p £000 12* 

The flret UK Investment bust to focus solely on India, one of the world’s largest emerging markets 


ok nfe 27/4/94-18/5/W 


■ Johnson Fry European UtiBtles 

Johnson Fly (071 321 0220) 

• Smith New Court SpB C&pital No 30 6% Yes No lOOp 

RanJEuropeen version of Johnson Fry's two hlgb-ytekfing UK utffittas trusts, launched last year 


nfe 3500 05% 3500 £30 18/5/9M0W* 


■ M u rr a y Acorn ’ s-” 

Hurray Johnstons (0345 22222® :> m .y • 

Beeson Gregory Smafer Cos 15 60 nfe Yes Yes lOOp* 9Ep 500 1% nfe nfe 

This fund wffl concentrate on the very emaBest amaB companies: no bigger than £SOm, and mostly under £3Qm. f In two Instalments) - J 


■ S c h roder Japan Growth Fund 

Schroder Investment Management (0800 525535) 

Smite New Court Japan 15 100+ n/a No Yes lOOp 955p 2.000 1% 

General Japanese fond from the Schrader stable, which already ruts several Japanese unit trusts 


nfe nfe 


77?Sv 

• 

7/S9W0#®* 



Ttiepiwnfiu^and Aimandihelra)nii-ft.MPil»»my^dproM»Jw.ipjndrwiMT TO g a l n dtnw»nM«mTiMln»qLrtai»ii^ Thtwlmcfitytnnc<wf>kpc«id*wnifaclndtThlMlanaBa*an3orifitinvcgor. HawiwcitmmnmM.i-j 

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FINANCIAL TIMES WEEK END M ay 14/MAY IS 1994 

financje and the family 


WEEKEND FT VII 


T Hh 

% Don’t lose out on holiday 




-O, 


ty». 




» C^- 

-Vi; 

■ 


t: • 


Bethan Hutton 
outlines the 
points to watch 
S when buying 
« ■ /rave/ insurance 


W hy was it, one 
experienced 
travel insorer 
mused the other 
day, that when a elaftn was 
submitted for missing luggage, 
it always turned out that the 
suitcase was full of Calvin 
Klein and Janet Reger designer 
underwear rather than the 
plain Marks and Spencer 
small s you might expect to 
find? 

A™* was it not strange, he 
continued, that so many people 
had their hi-tech cameras, gold 
Rolex watches and remaining 
travellers cheques stolen on 
the last- day of their holiday, 
did not have time to report the 
theft to police, and then could 
not flwd the original receipts? 

Fraud is ah issue preoccupy- 
ing the insurance industry. 
Many companies suspect 
rightly or wrongly - that a 
hard core of people view sub- 
mitting an insurance claim as 
a normal part of returning 
from holiday, along with send- 
ing off the snaps to be pro- 
cessed, and displaying the lat- 
est • souvenir on the 
mantelpiece. This could be- 
pnchmg tip premiums for hon- 
est customers. 

While it Is difficult for insur- 
ers to prove that someone's 
expensive camera is not in file 
hands of a thlaf, they «m have 
their doubts - and, increas- 
ingly, such a claim is likely to 
be turned down unless the 
claimant can provide police 
certificates and original 
receipts. This can catch gam- 
ine ciflftnantfi unawares. So, if 
you do have s omething stolen 
an holiday, make sure you get 
as much evidence for it on the 
spot as possible. 

New technology is also help- 
ing to stamp out fraud. Within 
the next year or so, insurers 
will be able to check dubious 
cases against a database to 
find out if the same person has 
had a run of “bad hick” for the 
past few summ er .faoMaysr - - 

Travel insurance does iibt. 
rover you for carelessness: One 
of foe mast common rialmn is 
for possessions stolen from 
beach bags while the owner 
was swimming. 

These days, such claims 
often are refected due to “lack 
of reasonable care" — a clause 
you are almost certain to find 
if you study the small print 
carafoOy. 

The best advice is to travel 
light, and dress simply, leaving 
all valuable Items such as jew- 
ellery and watches at home or 
in the hotel safe. But the insur- 
ance ombudsman has ruled 
against companies applying 
this rule too strictly, an the 
basis that you cannot be expec- 
ted to go everywhere emp- 
ty-handed. 



'<" ; 


Cover for personal posses- 
sions accounts for a substan- 
tial proportion of the cost of 
insurance premiums. Yet, 
many people may be paying 
twice over for items which are 
covered already. 

Most comprehensive house- 
hold contents policies already 
provide a certain amount of 
cover for possessions taken 
away from the home; usually, 
that can be extended farther 
for less than a travel insurer 
would charge. 

This is particularly true for 
large, expensive items such as 
camcorders. Travel insurance 
policies tend to have a single 
item limit of around £300, 
which rules out all but the 
most basic camcorder, but 
household in surer s normally 
are quite happy to cover big- 
ticket items. 

B radford & Bingiey 
building society has ' 
acknowledged this 
with Its range of 
travel insurance policies; these 
offer a 20 per cent discount if 
you opt : out of baggage cover 
becfonse ydttr household insur- 
ance already covers tt 
Frizzall divides its policy 
into sections, so you are not 
obliged to take the baggage 
and cover. Other insurers 
may soon follow. 

Most travel insurance contin- 
ues to be sold through travel 
agents, who tack it on as an 
extra when you book your holi- 
day. New roles mean that tour 
operators can oblige you to 
take out insurance. It does not 
have to be theirs, but they can 
insist that any. alternative 
offers at least equivalent cover. 

Often, though, tour opera- 
tors’ own insurance is poor 
value. More than half the pre- 
mium can disappear in com- 
mission, flp d the maximum 
cover fin* possessions or cancel- 


lation ran be lower than inde- 
pendent policies. 

You should, if you have time, 
shop around before yon book 
the holiday. And do not think 
of just the usual sources. Bro- 
kers, hanlrc tmri h uiliting Soci- 
eties all can sell you s omething 
- but have you thought of 
checking what your private 
health insurer has to offer? 

Gold card-holders should 
also check what level of cover 
they get for their annual foe. 
Some cards, such as Barclays, 
have fully comprehensive 
annual insurance but others 
provide only a few dements - 
travel acrid ait, cancellation 
and delay only, for example; 
without the crucial medical 
cover. 

Also worth considering is 
amvnai trave l insurance. Hali- 
fax is the latest on the market, 
with Lloyds Bank p lanning to 
launch its version next month. 
Policies can cover individuals, 
couples or familiaR, For anyone 
who goes abroad more than 
once a year, they are likely to 
be better value than single-trip 
cover,- as well -as bring mare 
convenient 

They can even be cheaper for 
just nna holiday . Take a family 
of two adults and two children, 
spending two weeks in Amer- 
ica with Lloyds. Single-trip 
cover would cost £155.60 but 
the new annual policy would 
cost £126.25 for the same gun- 
fly and cover it for any number 
of other trips as welL 

The table gives an indication 
of the general range of prices, 
but of course, details of cover 
vary, so assiduous reading of 
the small print is still a good 
idea. If, for instance, you are 
going on an expensive inter- 
continental trip, check that the 
policy covers the foil cost of 
cancellation - limits can be as 
low as £1,000 on budget poli- 
cies. 


■ ** 




l 


t 



Newton is an independent investment 
house with a single, simple purpose in life: 
to increase the real wealth of our clients. 
Hie no. 1 performance since launch of 


the Newton Income and General PGPs is 
evidence of our achievement. For more 
details of our PEP performance, call us, free, 
on 0500550000 arany time. Or dip die coupon. 


INVEST NOW TO GET THE FULL YEAR'S TAX BREAK. 

To. Ncwon'fand nLi^Js Uit-ukL 7 1 Queen V<W ru S«mv London LOW ID* Pletx send me details or the Newton PEP«me. 
Nme fiSSEI 




FTW03H 


Performance above and beyond 

“itrarJIWr Titotfi %■— - in And I9M tan how* frame fad. Ififlft Qua! Fun* Wtt GnMh Fund i/T Wjcn * 

tam fcf P0* M-ftepm I099LI farffaw' tank-id bfafci »<h««r ***** 

the cm » ^ * v -id mv n«*et tad U 

h«d rfHRQ LAUTROjkJ AUnr. 


Tram! Insurance premiums 



Europe 

adult 

chDd 

US 

adult 

chRd 

Barclays 

£19£0 

£9.75* 

£S2£5 

£2&33* 

Blshopsgate 

£21.75 

£10.90 

£49.95 

£24.95 

Bradford & Bingiey 

£19.50 

£9.75 

£42.50 

£21.25 

Columbus (standard) 

£11 

£5.50 

£27 

£1350 

Frizzel 

£20-63 

£10.34 

£41.26 

£20.68 

Halifax 

£19.95 

£13.45 

£42.10 

£28.10 

Uoyds Bank 

£21.65 

£10.85# 

B62L2Q 

£31.10# 

NaMfest 

£22.80 

£11.40 

£51.30 

£25.65 

Thomas Cook 

£28.95 

£2895 

£49.90 

£4950 

TSB 

£18-93§ 

£14.1 6§ 

£48£0§ 

£38.39§ 


Awnka&tM for MHimk fifes oM*«n«OM/2-T& ‘f 
a&wmko 2S% offssut am. t«2adUtt ■ 2 cMUon bmT 
i Mn due M 00 I Vdn Jtn> 1. 


_w0it*os 
BpcMit mcmd chttdl 


Unfortunately 
most sensible people 
keep their money in 
the Building Society 


INVESTMENT OF £1,000 IN DECEMBER 1945 


Foreign & Colonial 

Higher Rase 


Invents era Trust PLCt 

Building Society Account* 

1945 

£1,000 

£1,000 

1970 

£30,269 

£2,554 

1985 

£191,470 

£8,489 

1994 

£824,584 

£16,226 


This cable may come as a shock for building society account holders. 

The truth is that while we all nan as savers of modest means, by leaving most 
of your money in a building society, you'll remain a saver of modest means. 
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The plain feet is, to save seriously over the long term and protect against the 
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Fortunately, to help protect your future, you can place some of your 
savings in Foreign 3c Colonial’s range of investment trusts through our Private 
Investor Plan. 

For further information, telephone the number below, stating where you saw 
the advertisement and the coupon reference number. Alternatively, post the 
coupon today. 


-a^ occ >«e n NU - nwm; BZW. TteeaftB hi«hai ■ 
JlMDccmbaramfleacnSIaMadJiadi 


■M n^Uile ke« MkHpa OnsMO* AccmmX Fiv» ac M 
ww.wiliaitiriwiirf.KMrtio»b|irwiisainiil 
: at 31a Dcccabcf (I9M firm » Jla Midi, lacfcaka binned 
[osar 


Share in the success. 


| 24 HOUR PHONE SERVICE 0734 828802 

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Fteripi&Cbl 


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Tie value of Am cu Ml m wdi as mo and inmmn magr not get tuck the amount 
P»t performance'll oo guide » the fanuc. 


INVESCO-Rational 


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lit I ( >U : S tub mighty ll<i,U /)(•(, lli'c th i.-l (li'Oljr i.- h ,) hr. 


Humankind has always (earned by 
identifying patterns. By understanding the order of 
events, we can attempt to predict the future with a 
greater degree of certainty. 

Just as Archimedes, watching his 
bath water overflow every time he stepped into the 
tub asked why these events followed the same order, 
so do INVESCO's fund managers analyse patterns 
looking for results. 

In Europe; for example; teams of national 
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to historic economic cycles. According to the established 
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This knowledge is applied directly to 
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our European Unit Trusts. 

it is because we understand that our 
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results that each one of our investment judgements is 
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As one of the few global investment 
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We don't believe in instinct alone, 
because what we aim to do could affect your future 
as profoundly as any scientific breakthrough. 

If you'd like to know how INVESCO's 
scientific approach can benefit your long-term Invest- 
ment objectives, please complete and post the coupon, 
or call us free on 0800 010 333. Alternatively, contact 
your Independent Financial Adviser. 



INVESCO 

The scientific approach to investment 


RESEARCH 


ANALYSIS 


MEASUREMENT 


The s c i e n t i f i c 


UNDERSTANDING 


a p p ro a c n 
to investment 


Please send me more details on (tick as appropriate):- □ EUROPEAN UNITTRUSTS □ INVESCO 



Please complete and post to INVESCO, FREEPOST, 11 Devonshire Square, London 6C28 2TT. 


A224M 


INVESCO is the marketing name of INVESCO Fund Managers Ltd. The value of Investments and any income from them can fail as well as rise and you may 
not receive back the amount invested, particularly in the case of early withdrawal. Overseas investments may also fell or rise due to currency fluctuations. 

INVESCO Fund Managers is a member of IMRO, LAUTRO and AUT1F. 


s 







VXU WEEKEND FT 


FINANCIAL TIMES WEEKEND MAY 14/MAY IS 1994 



: 


0 

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Telecom Ajuuiim 


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Teh (44) 481 712176. Foe (44) 481 712065. 

Please send me details of the new Gimme&i Flight Global Prtvstbsdon Fond. 





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■a gmraani 111 (kirara FfigliBotto Asm Miugi—lJcta4.iiMabtfo(MR0Md Intro. 2U\-ai 



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 


To: The M&G Group, M&G House, Victoria Road, 
Chelmsford CM1 1FB. No Salesman will call. 


Mr/ Mrs /Mian Initials 



W L 1 

Ptw performance does not guarantee future growth. Tha pries of unto 
O upniatB income Ann ffiem can qo down as waff as up; you may rust out 
■ buck the amount you invested. 


issued by M&G Financial 
Sorvtaea Limited 
(Member Of IMRO). 


For literature, In d utH n g 
an M&G Handbook and 
details of PEP 
t ransfe r and M&G Sterling 
High Interest Rind, 
please return this coupon, 
contact your Independent 
financial advisor 
(if you have one) or 
telephone 0245 390 OOO. 
(24 hour service). 


Untab The M&G Managed Ineonie PEP hew tor less than 5 yews are 
•wbjact to a wWxlrawe fee ot between 1% and 45%. 


^awvIc—tiSwwd by 


tasMamaUori. 


kMO CampaHM. tick Ota boa CD >yau would not to tacoha 


|MQy4 tnaia — mnwgra by Mid BawaMsa Umtad (Manner at mho and 


MocaitaUNeM 


M&G Is the 
Sunday Times 
UK Unit 
TVusl Group 
of the Year. 


•mdrnitaa/mmnaputna at Inland. 


FINANCE AND THE FAMILY 


THE M&G PEP 





A problem of pressure 

Joanna Slaughter sums up her series on fee-based financial advisers 

D avid Norton, the of Boyton Financial Services, assets are left largely to the list of advisers in dlifera 
chairman of the “Our only fu nction Is to pro- care of bancassurers - those areas of the UK who conduct j 
Institute of Finan- vide riynfa with added value,” who sell insurance-related least part of their business c 
dal Planning, has he says. products through banks and a fee basis; and the Aasodaik 


D avid Norton, the 
chairman of the 
Institute of Finan- 
cial Planning, has 
lnrartflrf the fees versus com- 
mission debate to the MSS Lon- 
don orbital motorway. He says: 
"You go round and round in 
circles, not getting anywhere." 

Certainly, views seem to be 
antrwnrhgri. The fee-based inde- 
pendent advisers who have 
been profiled in _the past 15 
weeks run very different finan- 
cial planning firms. But. in 
general, they are united in 
believing that consumers ran 
get genuinely unbiased advice 
only when an adviser is under 
no finanriai pressure to sell 


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commission-laden insurance 
and investment products. 

Many of the fee-based advis- 
ers interviewed identified com- 
missions as ranging much of 
the malaise within the finan- 
cial services industry. 

They feel they are in the 
industry vanguard, not least 
because the new commission 
disclosure rules laid down by 
the Securities and Investments 
Board - the industry's main 
regulatory organisation - look 
set to accelerate the move 
towards fee-based advice. 

“Our time has come." claims 
Tony Shepherd, a fee-based 
IFA from Kent “Commission 
disclosure will act as a cata- 
lyst I see the independent sec- 
tor diminishing and tiie more 
sophisticated end of the IFA 
market becoming fee-based." 

Like other IF As, though. 
Shepherd stresses that fee- 
based firms most do more than 
sell financial products if they 
are' to justify their charges. 

Another is Richard Boyton, 


of Boyton Financial Services. 
"Our only function is to pro- 
vide e fignta with added value,” 
he says. 

“We are no different from an 
accountant or a solicitor. And 
it can’t be all smoke and mir- 
rors. Our businesses will fall If 
the client does not perceive 
that we are adding something.” 

Many EFAs fed added value 
goes hand in band with profes- 
sional qualifications. They 
argue that the public will not 
accept EFAs as members of a 
profession until the industry 
nn«i enforces hi gher stan- 
dards. 

Indeed. David Harris, manag- 
ing director of Chantxey Finan- 
cial Services, requires his 
advisers to acquire qualifica- 
tions as part of thdr service 
contracts. 

Commission-based advisers 
tend to defend their position by 
claiming there is widespread 
consumer res ist a n ce to paying 
fees for financial advice. Some 
have pointed out that many of 
tiie fee-based advisers inter- 
viewed in the FT series run 
comparatively modest busi- 
nesses; this reinforces their 
view that the audience fin* fee- 
based advice has a narrow 
base. 

They argue, too, that as fee- 
based advice can cost up to 
£200 an hour, it is often beyond 
thp fmanriai reach of many 
people. Few fee-based advisers 
would deny this, but none 
appears yet to have solved the 
problem of bringing impartial 
advice, at an affordable price, 
to small savers and investors. 

The tax regime also but- 
tresses the status quo of com- 
missions. They are exempt 
from value added tax but pro- 
fessional fees are not. Thus, it 
could be in the interest of cli- 
ents for the fee-based adviser 
to tafca Mimmi s a i mm , even if 
these are offset against fees 
later. 

Andrew Swallow, a fee-based 
IFA in Ipswich, says: "Going to 
a fee-based financial adviser 
might be best, but there are 
occasions when the client 
should persuade him to take 
some commissions.” 

Most fee-based advisers 
think it inevitable that the 
industry will become polarised, 
with the better-off serviced by 
fee-based advisers while those 
with low incomes and modest 


assets are left largely to the 
care of bancassurers - those 
who sell insurance-related 
products through banks and 
building societies. 

Nevertheless, many claim 
that XFAs who rely on commis- 
sion may under-estimate the 
public appetite for impartial 
fee-based advice. They die the 
Institute of Financial Planning, 
which publishes a registry of 
Us members and Is trying at 
present to cope with a backlog 
of 300 inquiries from the pub- 
lic. 

Other sources of help for 
those seeking a fee-based IFA 
include Money Management 
magazine, which ran provide a 


list of advisers in different 
areas of the UK who conduct at 
least part of their business qq 
a fee basis; and the Association 
of SoBdtor Inve s tme n t Mnn^ 
ers. which has a directory of 
members who undertake 
investment management and 
other fin ancial services. 


■ Money Management; teh 
0272-769 444 (computerised ooict 
stroke); On Institute of Pimm* 
ckti Planting. Ber efd d Bouse, 
Bast Street, Hereford HR1 ZfM 
tek 0433-274 89k the Association 
Of Solicitor Investment Mamay 
ers, BaMocks, Ckiddtngstone 
Causeway, Tonbridge, Kent 
TNU 8JX, tek 0892870 065. 


What you should ask 


It is rash to assume tint a 
fee-based adviser Is 
automatically a good adviser. 
writes Joanna Slaug h ter. 
Indeed, people should be very 
careful before placing their 
affairs In ttm inw4« of any 
IFA. The following questions 
could help: 

L What is the background 
of those running this firm? 
What are thdr qualifications 
to advise me about money? 

2. Can you supply the names 
of anyone to whom 1 can apply 
for a reference about you? 

3. How modi do yon charge? 
Are fees agreed in advance? 
Are fees time-based? Will you 
charge me for the initial 
interview? How will I be 
billed? What happens about 
any commission payments? 

4. Can I see an example of 
a financial planning report 
that has beat prepared for 
an existing client? 


5. How am I judge the 
investment performance yon 
have achieved for clients? If 
there are no relevant 
performance statistics, can 
I see a current cUent port- 
folio? 

8. How wQl you keep In 
touch with me? What 
Information win I get from 
yon during the year? Wind 
happens if my financial 
circumstances change? 

7. Will all your advice be 
confirmed In writing? 

8. Do you provide a complete 
management of assets? What 
other services do you offer? 
Will you liaise with my 
accountant and solicitor? 

9. Do you handle cash? IT 
so, what safeguards do Ih&ve 
that it is secure? Do yon have 
indemnity insurance? 

10. How quickly can we 
terminate our relationship 
if it does not work out? 


Those who appeared 


The advisers toko appeared in 
our series on feebased IFAs 
are: Norton Partners (January 
29k Murray Noble (February 
5); Hill Martin (February 12); 
Boyton Financial Services 
(February 19k Chamberlain 
De Brae (February 26); RJSL 
Gee & Co (March 5); Cripps 
Harries Hall (March 12\ 
Shepherd Associates (March 
19); Cavendish Financial 
Management (March . 26); 


Chantrey Financial Services 
(April 2); Fairways Fullers 
Field (April 9k Robert Lan- 
gley & Co. (April 16k Douglas 
Deacon Young (April 2^- Pat 
Brogan I4fe& Pensions (April 
30); Roger Harris & Co. (May 
7X 

Some back copies can be 
ordered from the Financial 
Times- shop (tek 071-873 3824k 
Prices vary depending on the 
date of publication. 


ADVERTISEMENT 


‘BZtIL'D I9{§ SOCI'E'iy r PE3&tS 


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_PP^^j^|^^_tlME$^WEEKEND MAY 14/MAY 15 1994 


WEEKEND FT IX 


i 'N 

e SSU| 


FINANCE AND THE FAMILY 


sho. 




^• r cT-'^ 

IS 

*■ .w\!?r 

,t . ’"* ! - , S4 

■ - ^i‘i> 

“' , 2 h -t •■ 

. V --sa 


who appear 


f. r_; •■ « 5- ndtflT-t** 


.• .:. V- >~ 1 » * 


Question: I am being made 
redundant after 10 years with 
my company. What happens 
about my pension benefits in 

tte company scheme? 

A. The benefits available on 
leaving are set out in the 
scheme booklet; a copy would 
have been given to yon when 
you joined. You have a choice 
o£ 

1. Leaving them in the 
stibeme. 

2. Taking a transfer value 
and transferring to your new 
company scheme. 

3. Taking a transfer value 
and investing in a personal 
pension or buy-out contract 
from a life company. 

Q. What benefits do I get if I 
leave them in the company 
scheme? 

A. You get a deferred pen- 
sion payable from the nrnmaT 
retirement date of the scheme. 
The value Is calculated on how 
kmg you worked for the com- 
pany and your salary at the 
tfmB of leaving. 

If your scheme provides a 
pension at 65 of i/60th of earn- 
ings for each year of service, 
and your salary at leaving was 
£18,000, your deferred pension 
payable from age-65 would be 
10/60ths of £18,000 - that Is. 
£3,000 payable from age-65. 

Q. Would this pension be 
increased to offset in fla tion? 

A. Yes. By law, the scheme 
must revalue this pension each 
year up to retirement by the 
Increase in the retail price 
index, subject to a maximum of 
5 per cent a year. Some 
schemes, particularly those in 
the public service, revalue 
without any marirnrrm Once 
the pension becomes payable, 
it is treated like any other pen- 
sion as set out in the . scheme 
rules, with guaranteed 
increases as well as any discre- 
tionary rises to offset infla tion. 

Q, Are there any other benefits 
from the company scheme? 

A. Yes. Yon can take a cash 
sum and a reduced pension. 
There would be a pension pay- 
able to your spouse - usually 
half the full pension. You 
would also be able to take the 
pension early if you retired 
before the normal age. You 
would also be entitled to a pen- 
sion if you fall ill anil were 
unable to continue working. 

Q. What is a transfer value? 

A. The transfer value is the 
cash equivalent of your 
deferred benefits in the com- 
pany scheme at the tinw of cal- 
culation.' Id represents- the 
value of the assets fife scheme ' 
needs to hold in order to pay 
your pension or other benefits 
when they become due. 

Q. How is this cash equivalent 
calculated? 

A It is done by the actuary 
to the scheme, in conjunction 
with the trustees. Tbe actuary 


Your pension 


Y ou can take it with you 

In the second of three articles, Erie Short discusses changing jobs 


estimates what the pension 
payments and other benefits 
will be and how long they will 
be made. He also consults with 
the trustees on the likely 
increases in those payments. 
Then, the actuary discounts 
those payments at a rate of 
mterest related to the expected 
investment returns ozl the 
fund. 

Q. How does the actuary know 
what the pension payments 
w31 be, how long I and my 
spouse will live to receive 
those payments, and what the 
future investment return on 
the fond will be? 

A. the actuary is trained to 
assess the most likely values 
for all these parameters. 
Besides which, the Institute of 
Actuaries and the Faculty of 
Actuaries, the professional 
actuarial bodies in the UK, 
have laid down guidelines for 
calculating transfer values. 
Nevertheless, there is consider- 
able scope for individual actu- 
aries to use their professional 
judgment in calc ulating trans- 
fer values. As such, there is 
considerable variation In calcu- 
lated transfer values for the 
same deferred passion because 
actuaries have different views 
on investment returns, mortal- 
ity and pension increases. 

Q. How do I find out the 
amount of my transfer value? 

A You simply ask your pen- 
sion department for a quota- 
tion. If there are ninoa redun- 
dancies, it Tnight taifP a while 
to receive it 

A point to remember is that 
transfer values will vary in 

SIB acts 

Next week, the Securities 
and Investments Board, the 
chief City watchdog, will 
publish advice to people 
about the issues they 
should raise with sales 
agents when discussing the 
possibility of transferring 
a lump sum out of a forma 1 
employer's pension scheme 
into a private plan, writes 
Alison Smith. 

The move is part of SIB’s 
efforts to raise the . 
standards of selling pension 
transfers following a pilot 
study late last year. This 
suggested a widespread 
failure among sales agents 

to meet regulatory 

requirements and raised 
public concern about the 
mis-sellfaig of pensions. 


■ • '0# t voce avtorffopa 
anp tfSfi lump tq tmc£Qvt# * 

A CON fAflCT QA) 'WU&Qtp&fipUty&fc. . 


amount, down as well as up, as 
investment nnnifitfo ng change. 
The quotation should give a 
date up to which the quotation 
is valid. 

Q. If I take the transfer value, 
what do I do with it? 

A What you cannot do is 
take the cash. You have to tell 
the trustees where you want it 
invested; then, they will do the 
transaction on your hph«Tf 

You can invest the transfer 
value in a protected rights per- 
sonal pension or a Section 32 
buyout from a life company. 
The choice between the two 
contracts is meaningful only 
for very large transfer values. 

For the vast majority of 
transfers, you would Invest in 
a personal pension. 

Q, How does a protected rights 
personal pension function? 

A A personal pension oper- 
ates on what is known as the 
money purchase principle. 
This means that- 

Z. The life company tairaw the 
amount of the transfer value, 
deducts its charges, and 
invests the halannft tn a fund(s) 
of your choice. 

2. The fund accumulates in 
value until the tima when you 
taka the benefits. 

3. You take these by using 
the accumulated cash to buy 
an annuity. 

Q. How much of the transfer 
value will the life company 
take in charges? 

A Initially, around 5-6 pa 
cent Then, there will be an 
annual charge on the fund. 
This might, or might not, be 
specified. 

Q. In which funds can I invest 
the personal pension? 

A You have a wide choice of 


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Who said your 
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You can have 60 free 
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and earn a high interest 

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funds - UK and overseas equi- 
ties. gilts and fixed-interest, 
property, cash - and you can 
divide the value between the 
funds. Alternatively, you can. 
leave it to the life company by 
investing in the wwmagipH fund, 
or, if it is a traditional life com- 
pany, in the with-profits fund. 

■ Q- When can I take the bene- 
fits and in what form? 

A Your transfer value is 
divided into two parts: the pro- 
tected rights and the excess. 
The benefits on the protected 
rights element, representing 
the Serps contracted-out ele- 
ment, have to be taken at state 
pension age. The accumulated 
fund is u»d to buy an annuity 
on a uni-sex, uni-status ha win, 
increasing by 3 pa cent a year. 

Benefits on the excess ele- 
ment can be taken, wholly or 
in part, at any trmn between 


your 50th and 75th birthday 
(both dates inclusive). Up to 25 
per cent of the combined value 
(protected rights and excess) 
can be taken in tax-free nash, 
provided it can be taken from 
the accumulated value of the 
excess. The remaining value of 
the excess has to be used to 
buy an annuity of your choice. 

Q, How do I decide whether to 
leave the benefits In the com- 
pany scheme nr transfer to a 
personal pension? 

A Company schemes pro- 
vide guaranteed benefits In 
terms of your salary at the 
time of leaving, with a degree 
of protection against inflation 
both up to and after retire- 
ment. If the scheme has a 
record of protecting benefits 
fully against inflation, as with 
the public sector schemes said 
those in nationalised indus- 
tries (present and previous), 
then you should not usually 
transfer. 

The personal pension pro- 
vides the chance to have your 
own pension arrangement, 
manage your own investment, 
and take part of the benefits at 
a tima of your nhnnirtng But 
things can go wrong, particu- 
larly with t he investment, and 
there are the charges deducted 
by the life company. 

Q. Is there any means of com- 
paring benefits? 

A The life company will pro- 
duce a transfer value analysis 
which indicates the overall 
investment return needed for 
the personal pension to match 
the company scheme benefits. 
You have to decide if your 


choice of funds, and the life 
company's investment perfor- 
mance, can better that retum. 
But the analysis is produced by 
the life company actuary and 
is subject to as much uncer- 
tainty as the transfer value cal- 
culation. 

Q. What questions should I 
ask the salesman? 

A First, ask why he is rec- 
ommending a transfer and get 
the reasons in writing. Be sure 
they are sound and feasible. 
Second, make certain you 
know why the galpyman thinks 
the life company can achieve 
the required investment 
return. 

If you are stQl comparatively 
young, the pension provided 
from the compa ny sche ma or 

the personal pension will be a 

minor part of your total pen- 
sion. You can afford to take 
the risk in getting a higher 
relm.jj from a personal pension 
while securing the greater part 
of your overall pension from 
other, more stable sources. 

If you are older, fl wn gh, this 
pension will form a much 
larger part of your overall 
income in retirement So be 
wary of taking chances with it 
unless you are prepared to 
accept the consequences. 

Q. Do I have to decide now 
whether to transfer? 

No. You do not have to make 
a decision at the time of leav- 
ing employment So, yon can 
leave the benefits in the com- 
pany scheme and transfer into i 
a personal pension lata. 

You have a legal right to 
transfer at any up to one 
year before the scheme’s retire- 
ment age. Many whimu* will 
allow transfers right up to 
retirement 

But do not transfer simply 
because you feel bitter against 
your old employer and every- 
thing connected with your pre- 
vious employment Consider 
transferring on financial 
grounds only. 


‘No mystery’ 


From Raymond Moody 
Sir, 1 refer to the first question 
and answer in your Briefcase 
column last week (May 7ISU If 
no one has heard of the Rule 
i of Three, then it reinforces my 
conviction that the common 
stock of general knowledge 
I can no longer be counted 
upon. 

There is no mystery about 
the Rule of Three. It has a 
sufficiently established place 
in the fen g nu y to figure in 
the Oxford English Dictionary, 
VoL Q-R, p.882. It is defined as 
“a method of finding a fourth 
number from three given num- 
bers, of which the first Is in 
the same proportion to the sec- 
ond as the third is to the 
unknown fourth" - with eight 
supporting quotations from 
1594 to 1891. 

So much for the Rule of 
Three. The genuine mystery is 
how the bank concerned man- 
aged to use this simple rule to 
turn £9,000 into £30,000 unless 
the phrase was invoked as 
token of a prob verb! ally 
arcane procedure. Are we back 
in Kipling's world of the “gods 
of the copybook headings”? 
Raymond Moody 
Cobb House 
Burford 
Oxfordshire 

Gifts from 
income 

My 80-year-old widowed 
mother has an estate which 
win be liable to inheritance 
tax, which we are seeking to 
reduce. Advantage is already 
being taken of the mtwrml gifts 
allowance but we would wel- 
come clarification of the gifts 
from income arrangements. 

She has a building society 
account to which interest ha« 
been accruing for at least 18 



Ha tvef resporata y am go oscapetf or » 
ftm aeU Anas far ns a i wra gMn n tfaw 
atom AT anquri as w* fls mm m m d by 


months untouched. What is 
the situation if this was paid 
monthly into an account held 
by my sister and myself (we 
are ha beneficiaries). For tax 
purposes, would these 
monthly payments be treated 
as Income for my sister and 
myself? 

■ To take advantage of the 
gifts out of income exemption, 
the amount being piftwi must 
be made regularly out of 
income and must not result in 
a drop in tbe donor’s standard 

of living. 

I understand your mother 
has enough income after tax to 
meet ha normal needs without 
touching the interest you men- 
tion. Therefore, it would be 
possible for the interest to be 
credited to ha account and 
then immediately transferred 
into an account for yourself 
and your sister. 

The income would still be 
taxable upon your mother but I 
assume that she is a basic-rate 
taxpayer. Thus, the interest is 
paid after deduction of basic- 
rate tax so that no more is 
payable. The regular payments 
from the building society 
account to the account for 
yourself and your sister would 
be gifts out of income and you 
would not have to pay further 
tax. (Reply by Bony StiBerman 
af Stay Hayward). 



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x WEEKEND FT 


FINANCIAL TIMES WEEKEND MA YT4/MAY 15 1994 


MINDING YOUR OWN BUSINESS 


I n the two years he has been 
naming a company producing 
bespoke conservatories in Lon- 
don, Patrick Byrne has learnt a 
number of lessons. 

He has had to curb a natural ten- 
dency to over-design and sg pgnri too 
much on the best materials. “The 
things which are interesting to rfp^g n 
• are not often very cost-effective," he 
says ruefully, 

Byrne is a 24-year-old architectural 
technician from Dublin, alflinng h hfc 
long flowing red locks and beard i«nd 
him the appearance of a Celtic poet 
After leaving college, he worked as a 
site agent and on the production taeny 
of a conservatory company, in 1991, 
he met Henry Cope-Barrison, an 
architect who was dpsfgnfng conser- 
vatories and found that they both 
thought most of the conserv a tories on 
the market were overpriced and 
under-specified. In June 1992, they set 
up Cope Conservatories as partners. 

“As we were coming into the mar- 
ket In a deep recession we had to offer 
something different,” recalls Byme. 
“Our idea was to be an upmarket 
builder offering a comprehensive 
design and bufld service. We wanted 
to be a design driven company, oper- 
ating at the top end of the market, but 
from a low-cost, affordable base. We 
recognised that there was a demand 
for unusual conservatories which 
other people could not build.” 

They wanted to build unusual, 
hand-crafted conservatories, each 
designed specifically for the client, 
rather than standard p re-manufac- 
tured “drop-on” conservatories. They 
identified their potential market as 
the more affluent parts of west and 
south west London, where -people 
often wanted to use wasted space 
such as side alleys. 

They found a small office in Chis- 
wick where the landlord agreed to 
waive the rent until they could pay 
him back. As employees were initially 
sub-contracted, start-up costs were 
low, apart from £3.800 to buy and refit 
a Mercedes van and £L500 to print 
5^00 colour postcards which were dis- 
tributed around south-west London. 

Although the response to the cards 
was low. they generated enough 
inquiries to lead to the first contracts. 
“We won jobs because we could solve 
difficult problems and get on with 
people’s kids - not necessarily 
because we were the cheapest We 
made a conscious decision not to wear 
suits when we went to see clients 
because it made us about as inviting 
as West Knfl nightclub bouncers." 

But costs were too high. The awk- 
ward nature of many of the spaces in 
which they were building meant that 
each job was technically demanding 
and the highly individual, often com- 
plex nature of the conservatory roof 
designs meant that they often took 
longer to build than expected. Finish- 
ing touches often took as long as 
building the main structure. 



Man In a glass house: Patrick Byme In one of Cope 1 


1 doolgner creations 


Timor Ha iW h s 


A fragile touch of glass 

Heather Farmbrough on a conservatory builder that has survived in a cold climate 


Neither of them, however, was will- 
ing to compromise artistic or techni- 
cal standards. For example, they used 
substantial mahogany rafters, 
whereas their competitors made do 
with narrow strips of aluminium or 
timber. At the end of the first year, 
turnover was £104,000 and they had 
sold plenty of work Profits, however, 
were non-existent 
As Byme says; “We were so hungry 
for work, we took on contracts at 
break-even price in the hope that if 
we performed it would lead to more 
referrals. We were selling BMWs at 
Ford prices.” They were stiQ relying 
on cash flow to fund the business 
rather than investing Capital in 


expansion. They wanted to produce a 
brochure and put ads in the glossy 
home fa mishing mfl ganngfi, hurt could 
not afford it 

Byme was exhausted, having 
worked 16 hours a day, seven days a 
week. He felt he was spending too 
much time on site chasing problems 
and responding to clients’ questions 
and problems, rather than doing 
essential administration and thinking 
about the business. 

In the last few months, Byme feels 
he has turned the comer. Since 
December, he has employed a 
fall-time foreman and joiner who had 
previously worked for him. as subcon- 
tractors. This has made his life con- 


siderably easier and cut Us working 
week as well as boosting the two 
employees’ motivation. The company 
has been reorganised so that it is now 
Byrne's, reflecting his greater practi- 
cal involvement, although Cope- 
Harrison still does all the design and 
marketing work- 

in February, Byme negotiated with 
the Midland Bank a £15,000 govern- 
ment loan whieh will be spent on 
marketing - a small brochure, more 
cards and site boards. He intends to 
buy a second Mercedes truck and 
eventually to open a joinery work- 
shop which would be owned exclu- 
sively by Cope, keeping costs down. 
and elimina ting bis reliance on sup- 


pliers. The first advertisement 
appeared in March. 

His objective is to take turnover 
nearer to £500,000 which should be 
feasible given the stream of new busi- 
ness. But the challenge is also to 
make a decent living from the busi- 
ness, rather than having to plough 
everything back. He has always 
enjoyed the challenge of being in 
charge, and Ids sense of humour has 
helped him through the more difficult 
moments. As he says: “If you cannot 
see. the funny side of this business, 
you are lost" 

■ Cope Conservatories, 20 British 
Grove, London W4 2NL. Tel: 081-741 
2200 


MINDING YOUR OWN BUSINESS 


READERS ARE RECOMMENDED TO SEEK APPROPRIATE PROFESSIONAL AOVTGE BEFORE BtfTEHMG MTOCOUMmeUS 


Recently established Food Manufacturing Company with excellent 
clientele portfolio seeks additional investment which will be supported 
by Directors Personal Guarantees and adequate "Deed’ security. 

Any agreement reached to be finalised through solicitors to foe entire 
satisfaction of both parties. 

For further dentils contact Mr. Keith Webster (Solicitor), 

K.L. Webster & Co-. 

Omega Court, 368 Cemetery Road, Sheffield Sll SFT 
(TeL 0742/669071) or (Fax 0742/664870) 


BUSINESSES FOR SALE 


BUSINESS SOFTWARE 

To advertise in this section please telephone 071-873 3503 
or write to Janet KeOock at the Financial Times, 

One Southnvri Bridge, London S£I 9HL or Fox 071 873 3098 


West End Musical 

Offers investors the opportunity 
to back a brand new show 
with star casting and superb creative team. 

For more infammiofi ptcaac 

Write brcBov B2S24t Phandai Times Oat Saahwvk Bridge, London SE1 flHL 


SOUTHERN 

ENGLAND/SOUTH COAST 
For Sate 

Powder Coating Cwtahy 

Rare opportunity to acquire 
profitable business, 
Taiuover£350fc per annum. 

For details plena reply to 
Box B2802. Hanoi Tfec^One 
Soottawatk Bridge, London SE1 9HL 


FOR SALE 

SECURITY/ALARM 

PRODUCT 

Rare oppoit m iity to acquire tbe 
design rights, drawings, 
tooling, stock and W1P of an 
advanced and unusual BABT 
approved sccurity/alaxm 1 
auto-dialling device. I 

Uses include domestic, 
industrial and process control 
applications. 

Contact Jane Jenkyn 
0932 561181 


British Academy Award 
Winner 199L 


Seeks sponsorship for supeib, 
charming children's series of 
animated films. First story 
already complete on film. 
Contact Gordon McEwan, 
Animation Pins, Brownings 
Manor, Blackboys, 
Sussex TN225HG. 

Tet Q82S 890 144 


DIRECTORY 
FOR SALE 

Profitable publication with 
tto competition. 
Opportunities for expansion. 

Current owners wish 
to pursue separate interests 
Apply to: 

Box B2S17, Financial Tones, 

One Soothnuk Bridge. 

London SEI9HL 


Advertiser S.W. Scotland 
offers for sale a complete 
water bottling plant newly 
installed and ready for use. 
Premises included and 
ample supply of E.H.O. 
Approved spring water 
capable of being uprated to 
National Mineral Water. 

Great potential especially 
for "own label bottling." 

01 health reason for sale and 
terms considered Co suitable 
purchaser. 

RING 0988 403404 


TEXAS U.SA. 

British Surveyor 
SEEKING PARTNER 
FOR DEVELOPMENT 
AND INVESTMENT 
OPPORTUNITY. 

Write to Box B282I, 
Fuunebl Times, 

One Soolliwaxk Bridge. 
London SE1 9KL 


ATTENTION1 DEVELOPING! 

COUKTRtESl LHD. 

30 ton + cargo kuefcs riA purpose, 
(ankers, tfppcas. etc 
ox-mWary. aknoa uniisod. 
From £6,950- 

OtheruqujpnnntavataUa 
Fax (W) 31.10.435.3205 


Established National 
Shopfitting Company 

For Sale 

£3 million TA3 with potential to 
expand. Mue chip dkmele. Price to 
include approx L500K F/H factories, 
offices etc. £SO0K work in progress. 

£S 50 K. Owner retiring. 

Write n Boo B289S, Financial Tinea, 
One Soathmfc Bridge, 

London SE! 9HL 


GARDEN & DIY 
PRODUCT RANGE. 

EstabSshed throughout UK & Eke 
In independent retailers. DIY 
multiples and mall order. 
Untapped potential in Europe. 
Subcontracted production, 
distribution & storage. Suit 
company looking to establish in 
this market or add to current 
range. TfO £1604)00 45% gross 
profit, OtBO £21 SjOOO 

Write to Box B26S& Financial Times, 
One Saultiwaik Bridge. 
London SE1 9HL 


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tUllOPE'S BUSINESS NEWSMVEfl 


Computing /Robin Brooker 




egotiating is a task 
we do every day- 
What do you offer 
children to make 
them behave? What extra ser- 
vice cast you offer to win the 
multi-million pound contract 
for your company? Negotiating 
Is a way of life, bat few of us 
have had formal training bo 
hrmn our aMTIs ’ 

Without training atari pfen- 
ning the outcome depends as 
much can the respect i ve person- 
alities of the n ^ ofeiators as it 
does on. the items under discos-' 
sion. Thera is a way aronnd 
this fax two computer progr ams 
I have seen' recently. 

The Art (f Negotiating runs 
under MS*Dos and has been 
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the US. It is based on Gerard 
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A cc ompany ing the s oft ware is 
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The program is easy to use. 
It takes you through personal- 
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Negotiator Pro is a; more 
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'Hie plan comprises a choice 
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on how deeply you want to 
analyse the situation. You can 
diagnose the opportunities and 
obstacles. The glossary is 
extensive. It has the equivalent 
information of a reasonable- 
sized book but is mare accessi- 
ble: it is in the form of Wta- * 


dotos help screens. - These > 
Indude some excellent profiles 
of negotiating styles tied to 
nationality. Though they can 
be little more than cursory, 
they do help when dealing 
with people of different cul- 
tural backgrounds. 1 

The program Is an Import 
from the US. I was interested 
in what it said about the 
En glish. Under “Cultural man- 
nerisms and body language” it 
said: “The En glish have refined 

body fangnag * anil *mi>wgrf«mB 

that indicate if they axe iff-dis- 
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iwrfndes a slight cocking of the 
heed with a harrowing of the 
eyes- According to Luigi Bar- 
gini in The Europeans^ - the. 
Bn giiali are supremely Imper- - 
turbable. They are convinced 
of tttehr superiority and that of 
their nation: They believe 
excitability is a sign of wwfofai 
instability" 

There are also a number of 
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an negotiating a deal on a new 
car, and continued; with the 
sample of getting a better peti- 
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Negotiator Pro provides a 
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The traditional market for ; 
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Which is tire better- software? 
The Art of Negotiating is more ’ 
focused; it -makes you more 
aware of the strategies likely 
to be used by the opposition. 
Negotiator Pro, on the other 
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your plan more fully. • 

■ The Art of Negotiating, soft- 
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■ Negotiator Pro is £265, phis 

VAT. . 

Both are available from CABO ■. 
0635255300 Fax: 0685-255148 



Continued from Page I 

expense of buying a new one? 
Might he want to use it again 
to keep me from Calling? 

I would have happily bought 
him half a dozen karabiners 
instead of having to dftnb - 
still on tny skis - three feet up 
to the rock to retrieve it before 
lowering myself back to the 
fearful perch I had just left 
The rope would, not go 
through the piton. 

I was reminded of the horror 
story I had read in The White 
Spider, a history of tbe ascents 
of the North face of the Eiger 
in which the sole survivor of a 
disastrous attempt an the sum- 
mit had survived a freezing 
night hang in g on to the moun- 
tain. before climbing down to 
the frozen corpse of his nearest 
colleague to make use of his 
rope - only to discover with 
bis dying breath that when he 
knotted the extra rope to his, 
the knot would not pass 
through the karabiner. 

I tried again, and this time I 
managed to force the rope 
through. Totally InwrpHrhaywl 
In climbing, I was now in 
slightly more control of my 
destiny. If I had fallen without 
my rope being threaded 
through the piton, Olivier was 
confidant that he could have 
held me, and I believed him. 
But at least for the moment t 
would be spared tbe anguish of 
swinging across the dope like 
a pendulum before he rescued 
me. 

I retrieved the karabiner .and 
then ta yfo pri - no. centimetred 
- my way back to the traverse, 
and shuffled forward, slightly 
more confident now that I was 
dosing the gap. At last I was 
round the comer, to be con- 
fronted with what we had 
really cook for. the snowfidd. 

It was steeper than anything I 
had imagined or ever aided. 
Olivier said latar that the slope 
was "almost 50 degrees, but 
not quite" - 

There was only one more 
psychological obstacle (or so I- 
thought) to be ovetoftnui. At 
the bottom of the snowfleld, 
150 metres below, ware more 
redes. I wanted to traverse to a 
point where - if I feU - there 
were no hard objects to ski 
Into, hi spite of the steepness, - , 
traversing here was much - 
easier. The snow was deeper, 
and there were no yawning 
couloirs to swallow you 

“P- - - 

“Don't wonry," said Olivier. 
Here you can foil without 


shoulder and backside pushed 
through the snow. “You must 
face down the slope the whole 
time,” said Oliver. I thooght I 
had been. Every time I turned, ; 
he wafted direct below me. “I 
will catch you if you fall,” he 
said. 

“Be careful at the bottom. 
There is huge crevasse - a 
rimto," (a crevasse that forms 
between the end of a glacier 
and the rock face immediately 
below it). *T thought you said I 
could foil here without being 
in danger,” I said, alarmed 
again. “Ah" said Olivier. “If 
you fall here you wiH be travel- 
ling so fost you will slide right 
across tbe crevasse instead of 
falling into it!” 

ODD „ : 

At last we were out of danger. I 
was going to live, hi front of its 
were thousands of feet of 
supreme powder. The sun was 
shining as brightly as ever. 
Even though the climb, the 
fear and the snowfleld had 
exhausted me so much that I 
hardly- bad tbe strength to 
enjoy the vast fields of powder, 
it was wonderful to have 
emerged unscathed. 

And Oiivier was right. From. 
now on tiie skiing was ecstatic 
1 tumbled three or four times, 
in the deep, sparkling powder. 

Both Olivier and I shouted in 
the direction of the rode where 
wehfldarrangedtomeet Lucy. 
Our voices' echoed emptily^ 
among fl»'moraines and ser- 


The slope was so steep that 




Fearing toe worst as the aim 
had begun to ga down, Lucy, 
had found har way - without a 

gtdde - down to the first stagB 
of the gondola lift to raise .the . 
sham, then t carrying her skis ■ 
- walked the difficult, boulder- ; 
strewn end boggy terrain back 
to La Grave. 

There, the manager of the 
tetepherique, armed .with 

strong btnocolars, had spotted, 
Olivier and me making our 
wav back through green ffrfri* 
qupdted.-wtth crocuses.. ftom' 
laf -a mile away; I waved at . 
Lucy and she wared back. Wte 
were pleased to see each other. 
Over a beer in the Castilian 

Hotel bar, I asked OHvterfcow 
Often he took cheats down . 
Pun de Rfdeou. Ton were the 
Bat? he said. “Hike to push 
clients beyond' their normal 
Hmtts.” : r^r 

Meanwhile, high shore the 
Glacier dn VaUbh, a cheap 
French piton hammered -intora 
rock is the only evidence of my 
most troubled hour un earth - 
a rather heDfeh gateway to ■■ 
same heavenly skiing. ^ 




* 

lot ,$ 


‘ hoick 
if tear 


FINANCIAL TIMES WEEKEND MAY 14/MAY 15 1994 


Me and My Wardrobe 

A look that’s 
fine and dandy 

John Morgan discusses clothes with a smart Italian 


WEEKEND FT XI 


FASHION 


*/ think I shall ask Kohji 
Tatsuno to design me a suit m 
the style o/Der RosenkavaHer,” 
says Manfredi della Gheradesca 
with a seriousness of tone that 
other men might reserve for 
talking about an investment in 
tndexJxnktd gilts. 

H e is describing 
tals costume for 
Minuetto, a 
fund-raising 
Venetian 
masked ball that della Ghera- 
desca is organising at The 
Royal Academy in June. Sand- 
wiched between Royal Ascot 
and Wimbledon, it will, he 
hopes, be- one of the great par- 
ties of the summer.. 

Count Manfredi tfaiia Ghent 
desca is one of the more social 
of the Insatiably sociable army 
of smart Italian ex-pats, who 
find Italy too parochial and 
New York too frenetic, and 
base themselves in cosmopoli- 
tan but cosy London. He is 
also, in a community for which 
narcissism is the nffiefai reli- 
gion, one of its snappiest dress- 
ers. “You only have to look at 
15th century frescoes, to see 
we Italians have always been 
very concerned about clothes." 
he muses, assuming a passable 
resemblance to a bearded 
Renaissance Mint 
An unabashed dandy, della 
Gheradesca, has inherited 
mors than a title from his for- 
bears. “My great-grandfather 
sent his shirts from Tuscany to 
London to be washed and 
fthtt-chari and than there was a 
great unde who was a neck- 
wear junkie and left 1,870 ties 
in his will." Many of these 
form the basis of young della 
Gheradesca’s collection of 
accessories, which includes 300 
ties, 80 Swatch watches. 50 
waistcoats and 150 pairs of 
antique spectacles. 

However, for all his affecta- 
tions, it would be a migtalra to 
dismiss della Gheradesca as a 
mere modem day M&caibnir 
After studying at Florence 
University, Hunter College and 
receiving an MA from New 
York University of Fine Art, 
della Gheradesca worked as a 
European private art dealer 
and gallery wnmag pr hi Man- 
hattan. Now, as well as raising 
money for The Royal Academy 
from a younger generation of 
patrons, be works as an art-ad- 
visor for Citybank Private 
Bank. 

T act as a private curator 
buying, insuring, restoring art 
for a few high-powered interna- 
tional collectors,” explains 
della Gheradesca, who never 
tho ught he would “end up in a 
fingnrifli institution". 

Quite. But is he not rathe- 
an exotic figure in the sober 
world of finance? Is there not a 
tension between dressing with 
the orobitv of the hankm* and 
the air of the aesthete? “Work- 
ing in the private banking arm, 

I deal with very high net worth 
Individuals, who tend to be 
very worldly people, that 
accept more easily my wearing 
a Mickey Mouse tie, than those 
wor kin g in commercial bank- 
ing might Although I have to 
conform to a certain extent, 
my clients are looking for more 
than the bland banker, hi this 
way the clothes I wear are very 
much part of the language of 
my business,” be says. 

And what a feast of sartorial 
semiotics they are. Ranging 
from Balinese sarongs to fur 


hats fit for a Russian dictator, 
they kit him out for every fash- 
ion eventuality whether it be: 
“roller blading in Miami or 
meeting corporate collectors in 
Geneva". 

His suits have been made-to- 
measure for the past 14 years 
at the family tailor in Florence. 
“Until recently ready-made 
suits were a very negative 
issue in Italy," says della Gber- 
adesca darkly. He tends to sup- 
ply the tailor with fabrics he 
has acquired elsewhere. 

“I sometimes like to buy 
Unusual ninths that altho ugh 
appearing slightly “poor taste’, 
will nevertheless work when 
made-up. It’s part of my own 
personal challenge of not wear- 
ing a uniform. ” 

He favours the looser Italian 
cut and is currently enam- 
oured of a 1940s silhouette. He 
feels the “English military 
milk bottle-style” and “too 
short trouser look favoured by 
men of obviously Wasp ori- 
gins”, are not for Wm- 

He prefers single-breasted 
styles. “1 don’t like dou- 
ble-breasted - all that fabric, 
buttons and pockets overlap- 
ping on the stomach. Also, I 
am very picky about details. It 
annoys me particularly if the 
breast pockets are badly- 
placed, cuff buttons are too 
close to the edge of a sleeve 
and a waistcoat is cut too 
small.” He also has several 
blazers: “Quite the most useful 
and versatile item in a man’s 
wardrobe." 


S hirts ; are cus- 
tom-made in Italy. 
He tends to choose 
plain colours but, as 
with his suits,. eqfoys 
stretching the boundaries of 
good taste. 

“I like to pick up same dubi- 
ous taste fabric and have it cut 
it into a very formal shirt and 
then wear it with a very seri- 
ous suit. I hate dressing to jier- 
fpctiffn in my opinion, doe ele- 
ment of bad taste in an outfit 
such as a fun watch, ally cuff 
links and amusing tie, can be 
playful and amusing. However, 
yon have to learn to play the 
game — do minate the beast — 
otherwise you just end up with 
unadulterated vulgarity.” 

However, it is the waistcoat 
that forms the mainstay of il 
stUe della Gheradesca. “It is a 
much more satisfying acces- 
sory than a tie: there is only so 
much you can do with a nar- 
row strip of silk, but a waist- 
coat offers endless possibili- 
ties,” he enthuses. He began 
his love affair with the gar- 
ment by wearing relatively 
subdued sporting styles from 
WJL Gidden as a “sweater sub- 
stitute against the British cli- 
mate", but soon graduated to a 
feathery confection from 
Favourbrook made entirely 
from pheasant plumage. 

“I quite launched a fashion 
in Italy, when I wore it for boar 
hunting.” Now he wears a 
waistcoat on every possible 
occasion. The choice includes a 
lavishly embroidered LBth cen- 
tury example bought at Sothe- 
by's, a funky one made from 
US college flags, an amusin g 
numero from Italy constructed 
from a patchwork of ceramic 
tiles and several ethnic ones. 

Della Gheradesca lavishes as 
much attention on his casual 
clothes as his more formal out- 
fits. “I learned about casual 
dressing in America, where the 


compelling need to dress down 
has resulted in the best camai 
clothes in the world.” 

In addition to wuUpas sweat 
pants, denim shirts and 
hounds- tooth jackets beloved 
of a certain cfore of Italian t he 
has 20 pairs of Jeans. *1 adore 
wearing jeans because they are 
tiie only garments that change 
as yon wear them. By the time 
you have thrown them away, if 
ever, they have undergone a 
complete metamorphosis. ” 

Be is also intrigued by the 
faghirmah i? “rich man’s, poor 
man's look” and adores buying 
downbeat utility clothes that 
are maA* in luxury fabrics. 

“The secret to stylish dress- 
ing is not to show you are try- 
ing too hard,” says deTis Gher- 
adesca. And does he have this 
quality? “I think I give myself 
away in small ways.” 

■ Pictures: India van der Meer 
UJohn Morgan is associate edi- 
tor of GQ magazine 


forms the mainsta y of dafla Qt»ore deec a *s style: he wears one on ovary 
don. Here, a Favourbrook version is worn with a gray suit and an Etro tie 


M et a m orphosis; *1 odors w earing jeans bs c ausa they are the only garments that change m 
you wear them.’ This shirt is from Voyags and the waistcoat Is a patchwork of caramic tflss 


Alfred Dunhill 




>%#*f 

*■ ji* 

w- J - *?• 




ft \AJAotyyraftA sAotos QhinAUA rooter -resistant steel and f&ct gold roatcA'eeutA-scpftAir^yAzss - essentiaiyor- tAe x yenlleman plotting 
— /- a ■ voyage. Once- underway, Aorveoer, anotAer timepiece- may also come- in, Aa/uly. 


heTtattf, London. 

6tfa Center 1 993 . 


More titan ihe bland banker: The dothas I wssr are vary much part o< 
tits language of my burinaas ■* Hws, Jew* ■» amartanod wflh a btezar. 


'ores-. Starred*, r Uhlc&csoft< JnftTzeriuui jffaL, fttUsmitA* 


SoagAt- after- since /<Pp <3. 






Xj 1 WEEKEND ft 


FINANCIAL TIMES WEEKEND MAY 14/MAY 15 1994 


FOOD AND DRINK: THE FRENCH CONNECTION 


As France prepares for its summer invasion of Britons, Weekend FT writers have been gathering news and views from its regions 

Under starter’s orders 


H ors d’oenvre. The 
phrase hangs 
heavy on my tips, 
associated as it is 
wren meals on willingly par- 
tetan in railway hotel dining 
rooms 30 years ago, experi- 
ences so gloom-laden that I 
have not dared return. 

It is difficult to forget the 
smell of stale foods that 
weighed down the curtains. 
The carpets with patterns that 
screamed. The occasional 
whisper between diners 
passed for conversation. And 
the food. 

Hors d’oenvre was probably 
the only altern a t i ve to gluti- 
nous Brown Windsor Soup. 
There were poor quality 
sardines swimming in poor 
quality oil, denied even a 
smattering of parsley to cover 
their misery. There were fro- 
zen peas, diced carrots and 
potatoes in s ala d cre am mas- 
querading as Russian salad. 
There were cold hafcgrf beans 
and hard-boiled eggs with rub- 
bery whites and black-rimmed 
yolks that stuck in the throat 
like golf balls. 

Th ank goodness for change. 
First, the spread of the tratto- 
ria with its lighter and fresher 
tasting antipasti forced British 
hors d’oenvre trolleys to 
Improve their standards. And 
now that the fashion for ligh- 


ter eating is firmly estab- 
lished, hors d'oeuvre, anti- 
pasti, mezze, zaknskl, call 
them what you will, have 
become a star turn. 

A sparkling selection of 

aw«t appetising dfchpc is 

rightly prized, not only for 
serving in its traditional role 
as a first course, but also as 
lunch in Us own right What 
could be nicer for lunch in the 
garden when summer weather 
plays fair? 

A few choice meats and fish 

are nsnaL Classics include fat 
salt anchovies, ventresca tuna 
and cured herrings. Also excel- 
lent are garlic fried squid, 
mussels lightly steamed and 
dressed with fresh herb vinai- 
grette, and brown shrimps or 
cold water prawns served in 
their . pink armour with 
wedges of lemon or time or 
home-made mayonnaise or 
aioZL 

I tend to wave the flag for 
meats such as Scottish smoked 
venison and Cumbrian or west 

w iimlr y atr-rirfpd ham Ins tead 

of salami and saucissan- 

Dairy produce may be wel- 
comed by those who eat nei- 
ther meat nor f fcft- For exam- 


ple: crottins or other small 
gnats cheeses preserved in oil, 
sliced paper hoop thin and 
scattered with na stu r tium pet- 
als. Cubes of salty ewes-mflk 
fetta tossed with fresh chop- 
ped thyme, oregano and 
toasted coriander seed. Slices 



of buffalo mozzarella sand- 
wiched between basil leaves 
And slipped toast-rack-fashion 
into slits waiio hi large toma- 
toes cut nearly but not quite 
through. 

Pancake herb omelettes 
(one-egg omelettes, cooled, 
rolled up like a cigarette and 
snipped across into ribbons) 


are also good, as are hard- 
boiled eggs that are not indi- 
gestibly hard. (For yolks that 
are creamy rather than bullet- 
like, just cover the eggs with 
cold water, fazing slowly to the 
boil and boil for six minutes 
only, then plunge in cold 
water to arrest cooking.) 

But the main part of the 
spread - indeed sometimes the 
whole of it - should consist erf 
vegetable offerings. 

Currently a la mode, and 
utterly effortless for the cook, 
are such thing s as artichoke 
hearts, wild and cultivated 
mushrooms, sun-dried toma- 
toes. grilled baby onions and 
other bulbs preserved in ofl. 
Quality varies enormously 
from brand to brand. Most erf 
the best I have tasted come 
from southern Italy and are 
bottled in virgin olive off. 

My own pre f e re nce lies with 
raw vegetables and freshly 
cooked salads because they 
tend to be cleaner tasting. For 
the freshest impact, the trick 
is to serve cooked salads 
before they are completely 
cold after cooking. Never 
should they be chilled. Present 
favourites of mine include: 


■ Barely wilted spinach 
anointed with oil In which 
mustard seeds have been 
warmed until they popped. 
Baby courgettes halved length- 
ways, lightly steamed, pat ted 
dry and spread with parsley 
and coriander pesto. Baby 
leeks steamed and dressed 
with vinaigrette a l’oeuf. 
Steamed cauliflower sprigs 
tossed with olive oil, lemon 
juice, chopped capers, olives, 
mint and green coriander. 

■ Cucumbers are better, I 
think, seasoned with sugar 
rather than salt. Dress the 
slices with vinegar, but no oH, 
coarsely ground black pepper, 
chopped dill or herb fennel 
and starry-eyed blue borage 
flowers, 

■ Boasted red p e ppers call for 
oil but no vinegar, a little sea 
salt and a sonpeon of finely 
chopped garlic. 

■ Small cultivated mush- 
rooms (marrons for prefer- 
ence) are delicious raw If 
sliced and tossed twice over, 
first with a little salt and 
lemon juice, then with a few 
tablespoons of «*g»»ng hot 
olive oil armnatised with bay 
leaves and toasted and 


crushed cumin. 

■ Boiled French beans wel 
come a squeeze of lemon if 
atoU is on the menu, or a few 
spoonfuls of very finely drop- 
ped tomato flavoured with a 
silver of garlic and a few 
crushed fennel seeds. 

■ Saw wedges of crisp Floren- 
tine fennel need no adorn- 
ment Sices of avocado benefit 
from a dressing of chopped 
chillies, green coriander and 
lime. 

■ Good bread is always 

needed to mop up fragrant 
juices and to provide starchy 
contrast A mealy dish of 
poises is also to be recom- 
mended. Lentils with lovage 
and bacon makes a splendidly 
savoury dunce: cook 5oz of lit- 
tle *t»H g «nnaT| 

dropped onion in %pt water 
with the juice and zest of half 
a lemon, adding salt only 
when the lentils are tender. 

Dress with garlicky vinai- 
grette using two parts oil to 
one of lemon and mix in 2 
tablespoons of dropped tender 
young lovage leaves and 2oz 
grilled streaky bacon cut into 


If no lovage is to hand, add a 
pinch of curry powder to the 
cooking pot and finish the dirii 
with chopped celery leaves. 

Philippa Davenport 


Food and fizz: 
a tricky match 


T he large and 
ancient province of 
Champagne was 
one of the jewels in 
the French cr o wn. 
In spite of so many vicissitudes 
of fortune it has hung in there, 
bearing the brunt of the action. 
Battles and wars have been 
fought over its chalky soils. 
You would be hard-pressed to 
find a city, town or village 
which remains unscathed. 

Mention Champagne today 
and it is wine rather than war 
which springs to mind. Ask 
about the food and the locals 
will explain that there has 
never been a gastronomic tra- 
dition worthy of the name. 

Press them further and out 
will spill a shortlist of rather 
earthy things: the polee or stew 
which was served to pickers at 
the end of the vintage; pigs’ 
ears, trotters and andotdOettes, 
so prized by the area’s peasant 
fanners; in the less vinous 
country to the east, bread and 
dripping; little pies and pates 
and even that great pigeon pie 
on which French kings gorged 
themselves after coronations in 
Rheims; river fish, some 
muddy, some nob trout, pike, 
perch and eel; a special race of 
sheep which grazed on the 
chalk slopes of the Mountain of 
Rheims and which had white 
flesh, as a result 
In Britain a similar list 
would be the object of pride. In 
Champagne it is dismissed as 
“nothing much". 

Since the champagne houses 
started receiving favoured cus- 
tomers in the region, much of 
this has changed. The business 
of entertaining visitors has 
spawned its own style of cook- 
ing, as like to the original as 
chalk to cheese. 

The great houses needed res- 
taurants of an elegance worthy 
of their top amties and dishes 
which would not spoil the deli- 
cate taste of the wines. Any 
restaurateur who could pro- 
vide both could be guaranteed 


of the patronage of the cham- 
pagne firms. A second cuisine 
champenoise was bom. It is the 
only one the casual visitor is 
likely to experience today. 

Champagne wine is a deli- 
cate balancing act between 
three grape varieties: the 
maligned Pinot Meunier, the 
more robust and fruity Pinot 
Noir and the floral, and occa- 
sionally ethereal Chardonnay. 

Some champagnes depend 
wholly or principally on one 
variety and make wines which 
are, for the most part, less 
complex. Then there are the 
stOl wines of the region: red 
Pinot Noirs from Bouzy, 


Just what should 
you eat with 
champagne , asks 
Giles MacDonogh 


Ambonnay or Cmnieres; white, 
Coteaux Champenois; or oddi- 
ties such as the earthy rote des 
Riceys. 

The variety of styles gives 
the restaurateur a wide range 
of flavours to play with. Cer- 
tain dishes go better with one 
champag ne than they do with 
another. By common consent 
some dishes do not go with 
champagne at all: chocolate, 
or an g e s and salad. 

To this list, Jean-Pierre Lal- 
l ement, of L’ Assiette Champen- 
oise (tel: 2804 15 56), would add 
bell peppers, onions, mint and 
rosemary. Garlic is highly 
risky. On the other band Lalle- 
ment is not shocked by the 
idea of tripe with a Pinot Note 
based "blanc des noirs". 

Anyone who wants to play 
safe will serve you lobster, 
scallops or Dublin Bay prawns. 
None of these will rock the 
boat The conventional wisdom 
is to serve them with a Char- 
donnay-dominated cuvfee. or 
even with a pure Chardonnay 


Cremant from the Cdte des 
Blancs. The only time I found 
this did not work was in a 
champagne house where the 
chefs, from an Epemay restau- 
rant, had laced the lobster with 
onions and gariif. amt assassi- 
nated the wine. 

Chardonnay-based wines 
would seem to suit the ultra- 
fashionable John Dory too — 
althnng h any wine of cfiarmrftw 
will tend to overpower It Tra- 
ditionally, salmon was thought 
to pine for champagne: Grimod 
de La Reyntere gives a recipe 
for a salmon sweated in two 
bottles of the st uff * “This ffch 
is something of a drunkard; 
what’s more it will only drink 
the best” 

I wonder what Grimod would 
make of modern farmed 
salmon; a fish so oily that it is 
half way to a herring or a 
mackerel. In the restaurant 
Florence in Rheims (26 47 12 
70) I have seen champagnes 
knocked sideways by both 
sardines and red mullet 

The chef at Florence did, 
however, manage to come up 
with a papeton of pigeon 
staffed with its own liver and 
little rdfois olives which went 
remarkably well with an afl- 
Pinot Noir rote. On. the other 
ha nd , an attempt to match a 
gutsy champagne with lamb 
wrapped in bacon (white- 
fleshed or otherwise) proved a 
failure. I remain unconvinced 
by any attempt to marry cham- 
pagne to red meat or g ame . 

Champagne's nhiw»a axe all 
peripheral to the province: 
Cbaource, I Ingres, Boursanh, 
Brie and Maroillfifi. The Cham- 
penois have a particular affec- 
tion for the latter which ripens 
in tha autumn and is brought 
down from the north by the 
pickers. It is a strong cheese; 
not for nothing is one sort 
dubbed le supposition du <tia- 
Me while a version from UDe is 
called le puant. or the stinker. 

Strange as it may seem, the 
stinker went well with an old 



(1975) vintage champagne at 
the excellent Grand Cerf at 
M o ntchen o t (26 97 60 07) and 
old vintages of this sort also 
combine well with foie gras. 

Providing your podding is 
not too sweet, champagne, 
especially rote champagne, can 
provide an effective foiL But- 
tery pastry seems to cry out for 
it. On the other hand it is best 
to go easy on sweet, fruit 
sauces. All over France it is 
common practice to open a bot- 
tle of champagne with dessert 


when yon are dining in style. 

Outside the region itself, 
there is clearly less demand for 
meals accompanied by differ- 
ent champagnes. Even in Eper- 
nay I found the head of one 
champagne house who was 
clearly not going to go to war 
for this sort of gastronomic 
marriage: I asked him when he 
liked to drink champagne and 
he replied: "Every evening, 
before dinner." The rest was 
diplomatic silence. 

Anyone wishing to learn to 


cook with and around cham- 
pagne at one of the regions bet- 
ter hotel-restaurants might be 
interested in the Auberge Saint 
Vincent, in Ambonnay, which 
runs a three-night cookery 
break at just £183 per person. 
For the price you get accom- 
modation, dinners and break- 
fasts, cooking sessions (you eat 
you own work), a visit to a 
champagne house and ferry 
crossings for car and passen- 
gers. Inquiries to InntraveL tel: 
0439-771111; fox: 0653-628741. 


W 


hat makes some- 
one with a 
future, a steady 
income and a 
secure job with sociable work- 
ing hours, give it all up to 
become a restaurateur? 

As I still cannot explain why 
I' did just that, 1 put the ques- 
tion to Jean-Marie Pujade, who 
has opened a second restau- 
rant, this time In Paris. Such 
was the level of background 
noise from his busy venture. 


A Catalan transformation 


barely six months old. that I 
had to call him back three 

rimpg 

Thirteen years ago, Pujade 
was an architect in his native 
Perpignan, geographically in 
south-west France bat cultur- 
ally, spiritually and gastronom- 
ically part of Catalonia, the 


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1985 Ch. Lascombes £157 
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1989 Ol Poicnsac £69 

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region that encompasses north 
east Spain and France's Rous- 
sillon, and which looks to Bar- 
celona as its capitaL 

He was, however, growing 
increasingly disenchanted with 
his architectural commissions 

and, in a sharp change of direc- 
tion, became a nightclub 
owner. There, food in the form 
of tapas and other «raaH dlshns 
was served, nominally to soak 
up the alcohoL But like me, 
Pujade began to enjoy serving 
food to the paying public. In 
my case, memories of Jewish 
family cooking were rekindled: 
in Pujade’s it was the Catalan 
cooking of his grandmother. 

In September 1986, one of 
Perpignan’s oldest restaurants. 
La Casa Sansa, which opened 
in tiie early 1890s, was for sale. 
In spite of a distinguished his- 
tory - I was told about a local 
tax inspector who had eaten 
lunch there every day of Iris 
working life for 40 years - It 
was in need of Pujade's archi- 
tectural skills. A deep, gloomy 
beige on the walls and unflat- 
tering ceiling lights were not 
going to appeal to the clientele 
of the 1980s. Wo rking 15 hours 
a day, Piqade transformed the 
place into a Catalan brasserie. 

Today, the dining room is 
much lighter, the walls cov- 
ered in an eclectic mixture of 


prints, photographs and post- 
ers which, naturally, incorpo- 
rate Picasso and Dali, and 
around the open bar is a collec- 
tion of model wooden ships. 
Pujade has solved the problem 
of communication between the 
restaurant and kitchen by sim- 
ply carving a hole in the wall. 


rates them alL 
We began our meal with, 
thick, grilled asparagus served 
with a very garlicky aioli. Cal- 
cots, a large, local, spring 
onion, also grilled, was accom- 
panied by a slightly watery 
romesco sauce. This was fol- 
lowed by quickly sauteed 


Bon Appetit 


You enter the ItHe auberge and the waiter hands you the menu. You- 
mind goes blank. Just wftat a patage Longchamp? What is Bngue? What 
is kxi&ne? You have fa gotten - or you never knew - so one ol those 
in termin able tranglais conversations takas place as you extract the 
mearing from a recalcitrant waiter. There is another way. Take Tessa 
YouaO aid George Kknbaira pocket guide to French Food and Wine 
CE5-9S. Carbery, 240 pages}. It is not a new publication but It has been 
raprintedand Is worth mentioning again tor those who want to remove 
the frustrations of mderatandng often comptox menus. JW James 


through which orders, rilshps 
and chefs move easily. The ser- 
vice Is fast and friendly, super- 
vised by an elegantly dressed 
woman, who appeared com- 
pletely in cantroL 
While there can be no doubt- 
ing the courage involved in 
Pujade's mid-life career 
change, his timing has been 
impeccable. So many of the 
basics of Catalan cooking - 
gariic, olive oil. vegetables, fish 
and non-fatty grilled meats, 
such as chicken and rabbit - 
are currently fashionable. La 
Casa Sansa ’s menu Incorpo- 


fresh, young squid and escaR- 
vade, a simple but filling dish 
of roasted aubergines, peppers, 
onions and tomatoes, drenched 
with olive ofl. 

Then on to a plethora of 
fresh fish with an appetising 
white wine from Bernard 
Vaquer. A plate of thick gam- 
bos prawns, was served grilled 
accompanied by Rivesaltes, a 
local fortified wine. A pariUade 
de poissons included monkfish, 
cod and bream. A rather evil- 
looking. but delirious-tasting, 
cassolette de la mer was thick- 
ened and enriched with 


almonds. Finally, and fitting l y 
we were brought crime Cata- 
lans, a cross between crime 
caramel and crime brul&e, 
strong coffee and a bill of less 
than £20 per person. 

Sensible pricing is another of 
Pujade’s skills. Behind us a 
table of six sat down to the 
FFr48 (£5.60) two-course menu 
du jour. They began with a 
thick vegetable soup and then 
did battle with a large plate of 
costellou, a Catalan dish that 
incorporates various cuts of 
pork. (The menu du jour in 
Paris is FFr78, but menus and 
wine lists are the same in both 
restaurants). 

If I was unable to find an 
exact answer as to what had 
lured Pujade into the restau- 
rant business I would not let 
him return to his customers 
without telling me why he had 
made the successful 900km 
leap from Perpignan to Paris. 

He replied, with typical Cata- 
lan pride: “Firstly, because 
Paris is the world’s capital of 
good taste - after Barcelona, of 
course. As to its success, Pari- 
sians love the food but coming 
to my restaurant here brings 
back for many of them happy 
memories of holidays in Cata- 
lonia." 

■ La Casa Sansa, 43, Rue des 
Mathurins, Paris 75008. TeL 42 
55 81 62. La Casa Sansa, 3 
Fabrique Convert*. 66000 Per- 
pignan. TeL ■ 68 34 2184. 

Nicholas Lander 



v-yv-j 

•• -I*- 

!‘r& .■•*• 

■r- 3 .* ■- ■*’ 



McM BattaOK devoted to win* quaflly 


The trouble 
with the 
French . . . 


’’Wine is one of the great 
strengths of France. The name 
Margaux or Lafite is much bet- 
ter known around the world 
than , say. BaUadur, but the 
French seem to take no pride in 
their tomes. Britain has much 
better media coverage of the 
subject. 

" The Quality of a new vintage 
is a very important cultural 
and economic fact to France 
but, contrary to any other sub- 
ject, reporters never ask an 
independent outsider about it 
They ask the Ministry of Agri- 
culture!" 

T he exasperated “inde- 
pendent outsider" 
delivering this dia- 
tribe is Michel Bet- 
tang widely hailed as France's 
top, if under-utilised, wine 
writer. A jolly ovoid, vintage 
1952, self-taught and passion- 
ately devoted to wine quality, 
he gave up teaching classics 
three years ago to devote him- 
self to the French monthly 
magazine Revue du Vin de 
France (RVF) of which he is 
not editor but its tramp card. 

Although France is the 
world’s leading wine producer, 
RVF is France’s only consumer 
publication devoted to wine. 
Britain has at least three 
(Decanter, WINE and The Vine) 
while Wine Spectator, The 
Wine Advocate, Wine Enthusi- 
ast, Appellation and the Quar- 
terly Revue of Wine are just 
some of the US counterparts. 

The approaches and objec- 
tives of these three countries’ 
wine writers could hardly be 
more different For Bettane, it 
is as important to inform and 
guide France’s vine growers as 
the wine consumers among 
RVFs 80.000 readers, ffis par- 
ticular hobby horses are the 
need to hmit yields, the evils of 
relying on a single done of 
each vine variety, and the vir- 
tues of ecologically sensitive 
viticulture. 

Accordingly, he spends at 
least three months each year 
in vineyards and cellars coun- 
selling vignerons. His refer- 
ence points for each vintage 
include Michel Delon, Alain 
Vaufhier and Michal Holland 
in Bordeaux and Lafon, 
Leflaive, Leroy and Accad in 
Burgundy. 

Famed for both his palate 
and his memory, he never 
takes a note in situ. "It’s just a 
matter of politesse: you’re a 
guest; a grower gives you what 
he thinks is his best wine. How 
can people do it? Whafs more 
important is to listen to the 
wine and to the grower." 

His policy is to criticise by 
omission rather than to pub- 


lish a poor review. "It is very 
important to say the truth to 
the growers, but not necessar- 
ily to the readers." When asked 
how he retains his objectivity, 
he interprets the question as 
referring to his personal tast- 
ing technique rather than any 
suggestion erf partiality. 

American wine writers, on 
the other hand, will do any- 
thing to maintain their dis- 
tance from producers. The pre- 
ferred research method of 
America’s influential Robert 
Parker, for example, is to 
assemble and compare hun- 
dreds of sample bottles on neu- 
tral territory. Comments and 
points out of 100 based on his 
palate, rather than any contact 
with individual producers, are 
then printed in ruthless detail. 

While most American wine 
writers concentrate on nosing 
out the finest, rarest and often 
most expensive wines, the Brit- 
ish approach is more demo- 
cratic, but can be considerably 
less inspiring. “Go there, buy 
that,” succinctly summarises 
the average British wine 
article. British wine journalism 


wine semes out of 100. "Ibey 
are very, very dangerots. More 
and more the wine trade rim- 
ply reacts to these points 
rather than knowing what they 
like and want to sen 

“I have resisted publishing 
points in RVF. We use a much 
more general star system. In 
France we judge in a more cut 
tut xd, civilised way. To under- 
stand Pinot Noir, for example, 
you must understand the cul- 
ture of Knot Noir before the 
technical knowledge. 

"No Frenchman knows mots 
about California or Italian 
wines than me but it’s difficult 
to write about them because 
there’s no market for them in 
France - although more 
French people are becoming 
interested in non-French 
wines, especially Italian wines 
because of the cuisine. 

“I think California produces 
some superb wines, but Aus- 
tralians? I just cannot under 
stand them. Even someone as 
sympathetic as James H aill day 
[Australia’s top wine writer 
and a wine producer] seems to 
be from another planet Adds, 

tanning jffl^nra, WB taste Com 

pletely di f fer e ntly. With Bsvk 
[the academic centre of Cs® 1 
onda wine], I understand toon 
- and I know they’re wnfflfr 
With Australians, I can't avm 
understand them." 

For the moment, however, 
Bettane has quite enough pro£ 
lems to sort out at home. "We 
think that more than 60. V& 
haps 80. per cent of all ***** 

appellation amtrOUe wines are 

below the necessary ®* 
quality, especially in Burgoo* 
and Champagne. That's wW 

vins de pays producers de#**'- 
success; because they wort so 
much harder. , na 

“Perhaps the best yal« 
appellations in general are ® 
south west Franca - Madi^ 
Juranpm, Bergerac - 
Languedoc. They are 
wines with the edawfaw * 
French tradition rather tnsj 
the simplicity of the 
World. “And,” here b£ ^ 
his trademark .mtechiBWW 
smile, “they're so much 
boring than Bordeaux.” 

Janas Robins** 






is still Informed by the notion 
that the writer's job is to 
demystify this curious foreign 
beast called wine and swell the 
ranks of wine drinkers. Tim 
chief beneficiaries are the 
supermarkets, and those sail- 
ing wines at under £4 a bottle. 

In France. Bettane sees bis 
job as halting the decline of 
wine consumption and educa- 
ting a new generation of con- 
sumers. 

While Britain's consumerist 
wine writers list retail stock- 
ists. their US counterparts 
have to limit themselves to 
importers, so complex is the 
US distribution system. Bet- 
tane and his ilk simply give 
the address of the producer, 
however. “In France we don’t 
have wine merchants, and 
those few caaistes that exist i 
have no knowledge at all of the 
international wine market” 

As well as travelling to the 
US, and possibly Italy or Ger- 
many once a year, Bettane 
reads the British and Ameri- 
can wine press avidly. He trea- 
sures his relationship with 
"Bob" (wine guru Robert Par 
ker) and, like him, Bettane was 
born in Maryland, even though 
they differ on the subject of 

Frances top wine 
writer complains 
about his 
countrymen 




r 




FINANCIAL TIMES WEEKEND MAY 14/MAY 15 1994 


xm 



Why the Financial Times 
supports the Transmedia Card 

“The concept is so clever and simple that I 
thought if Transmedia is going to benefit any 
setjc^restaurant-goers with its 25% savings, 
ther^; should be that cosmopolitan band of 
fretgfit restaurant-going people from around 
the “world which constitutes the FT’s 
readership”. - Nicholas Lander, Financial 
Times Restaurant Correspondent , 

“Since Transmedia’s launch in January we've 
been doing great business. Takings are up 27 
per cent and Transmedia accounts for a good 15 
per cent of turnover." - Dick Pyle, Co-owner 
Hilaire Restaurant, Brompton Road, London, 


FREE FOR 6 MONTHS ! 

The Financial Times/Transmedia Restaurant Charge Card that saves 
25% OFF the bill at hundreds of fine restaurants across the country. 


Q. How is the Transmedia Restaurant Card used? 
A. The Transmedia Card is a charge card for dining out 
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credit card. 

Q, How am I billed for the transaction? 

A. No discount is given in the restaurant The lull 
unadjusted bill is sent to Transmedia by the restaurant 
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Q. How often can / use the card? 

A. As often as you like without any restrictions. There is 
no limit Use it over and over again, for lunch or dinner 
for all food and drink. 


Q. Must I notify restaurants in advance in order 
to use the Transmedia Card? 

A, No you don’t need to - though table reservations are 
always recommended at good restaurants. HOWEVER, 
IF YOUR PARTY WILL NUMBER 7 OR MORE, 
RESERVATIONS MUST BE MADE IN ADVANCE 
THROUGH TRANSMEDIA’S OFFICE. Reservation 
acceptance is based on several factors, including the 
date and time of your booking as well as the size of your 
party. For reservations, simply call Transmedia customer 
service number (071) 930 0700. 

Q. How do l Join? 

A. If you have a valid Visa, MasterCard or Delta credit 
card, you qualify upon a simple status check of your 
account and the signature of an agreement for 
Transmedia to bill your restaurant transactions through 
your selected credit card account. 

Q. Can someone else use my card? 

A. No. However, as an additional benefit to FT readers, 
we will issue a FREE additional card to be billed to the 
same credit card account 
Q. Pm convinced. How do / get my card? 

A. Just fill out the attached application form and sign it 
and send or fine it to Transmedia - for faster service just 
call 0800 393 852 (24-hour service UK only). 




DINE OUT AT SAVINGS OF 25% JUST BY PAYING WITH TRANSMEDIA AT OVER 350 RESTAURANTS IN THE UK ! 


CITY 

ALIAMMft fatal 107 WblmenmSam. 
London KIT SJH. 071 - 58 $ 1798 
TOE ANCHOR Traditional English. ■ 

34 Pick Sum, Leaden SEI 901071-407 1577 
ASHTONS french IV 14 LeedenlimD Mvfcn. 

’ London BC 3 V ILR. 07 1-929 2022 
BEAUCHAMPS FhK 23 Lodeabd Mreko, 
London EC 3 V ILR. 071-421 1331 
. .BENTLEYS SMfood, 11 Quern Vitoria Si, 

* London EC 4 N 4 Uj. 071*488 8067 
BRASSERIE DOWNSTAIRS AT CJ.S 
Incvnittowl U City Rond, London EC 1 Y 
2 AA. 071-638 1324 

CAFE ST. HERRS Ruxh 29 Ctokenwdl Green 
Fhrrintfu.Loaden BOR 0 DU. 071*391 M 06 
CHI ST. mas RESTAURANT french 

0 CkrtandJ lines, Loadaa ECIR 0 DU. 

■ 071-251 6606 

CANADIAN CRUX Mart* Graftal 
3M Steward Saw, Spiaifidik, London, El. 
071-3753003 

DOGGHTS COAT AND BADGE Brasserie 

1 BbddttUi Bridft London, S&l 9 U 0 . 

071 -633 9057 

POX ANDANCHOK Enqjhti I llChmcduMseSt, 
Union, 8 C 1 M 6 AA. 071-253 4838 
FUSCO Italian. Baekknbmy.lQareii Victoria 
Si, London EC 4 . 071-248 0095 
HAMILTON! fatal JSXxmfcnlrtlMirtet 
Cny of London BCJ. 071-626 6646 
HOUBMAN AT HAYS Canrery, Hoy’, GaOcria, 
Toolcy Street, London SEI ZhDl 071-4073611 
tSSUAQ Italian. 

10 linn SUM, London ECA 071-623 3816 
MABLOW 3 toad frwfoh Marti* Hone. Uayd 
Ancnoc, London EON 3 AA.H 71-481 TT 68 

tfnSEtor tirtaSDCK tiunft 1 •'* 
WbrNf/CUecdc 

ISO Un don Whll. London EC 1 . 071-7264446 
lAPAQUEREXTE french Middle of Hmbmy 
Sonc, London EC 2 . 071-638 5134 - 

. TOfAVILIONlESTAIJUNr Mod french 


London EC 2 M 7 AB. 071 -628 8224 
LB EBOeZVOUS ftwcMMed. 

1 lt -12 Stewart Street, London El. 071-375 
3094 

LEAOENBALL WINE BAR Tapas & Buffet, 

37 LadcnMI Marfeci. London BC 3 V ILR. 
071-623 1118 

LASRZIA BSTOMNTE * BAR fatal 
35 - 3 ^R«taoy Approach. Lnodcn SEI 9 SS. 

THtOCMQRTON EESTAUIANTS thgfftfy 
■ 27 a nungmacton Street, London 8 C 22 AN. 
071-5885165 

WALL STREET fatal American 

1 “ 

071 

KENSINGTON, 
CHELSEA 8t FULHAM 

ADOUU RESTAUIANT total A Pakistani, 
Victoria Keah High Street Kcadnsmi, London 
VI 3 PQ. 071 -9377076 
AUHDAG 8 ANA Spon&h Cheka ChttMent 
0 Sow A w l London SV 3 3 DX. 

071-225 1048 

ANTELOPE RESTAUIANT Trad. £ ngtisK 
22 Euan Term*, Londoo SWI IB. 

071-730 778 L 

L’ArnsrtASSOIfrt ftwieh 122 KewUpoo 
ftufc Rind. Amobelto, Imdon VI 1 2 EP. 
071-727 47 J 4 

THE A 5 HK 3 N RESTAURANT Modem British. 
Tk Pom Hmrt 97 CramacO Rood, London 
SV 7 . 071-370 5757 

AL MBA letiaime, m KoMhtgvn Hi* 
Sum Londba VI 7 RG. 071-938 17 M 
KUA PASTA fatal 1 SS Barb Goan Road, 
London SV 3 9 RQ. 071-244 8320 
BELLA PASTA Italian. SO Old Brampeu Road. 
LaadonSV ? «JY. 071 -S 84 4028 
BOSTONS Amanicarv 803 Fulham Rond, 
London SV 6 . 071-371 7982 
BUSABONGWEThH 112 Chcrne Weft. 

. London SVW OOJ. 071-352 7534 
KU 5 AB 0 MG TOO ThM la Lmn Sum, 
London SVWQL. 071-352 7414 
CAPXlAZEEZtoi Brasserie, 

9345 OH Breotpm Road, London SV 7 JLD. 
071-581 9993 

TUTTORUfLCARREriO fatal 
20 Hfogate SUM, Kemmgmn, London VI 
071-229 5040 

CWSCMneva. 311-313 New Ktap Road, 
LondonSWR. 071-736 8833 
CUD tartaric, 222 Miumx Bond, Fulham, 
London SW 5 SAY. 071-381 6137 
CONTHENXAL DBFT Oriental few, 

29 * MUM Hoad, London SW 109 BW. 
071 - 351 . 259 * 

THE DBUU BRASSOIE Indian. 

134 Owmefl Road, Ko uriw non. London SV 7 . 
071-370 7617 

DBHCOnSfiwML IHDayconA 
>diiaSV 3 


1 JAH. 071-584 5358 
CWLCSMOd EuropMi\ 

144 NtedMwrdi Bad«e Ifand. Fliflw. London 
SW 62 UH. 071 -736 2418 
THE ENGUSH GARDEN EngBrh, 
MUnMhSn^Chdm, London SWJ 2 TS. 
071-584 7272 . ' 

DUSE Enafth 3 Manor Sma, 
SV 32 QA. 071-584 3002 
GALUBY CAPE UNSBIGTON Annch 
63 Marina Road, London- VS. 071-937 8775 
CUEBrSMbricm Mthh l EddlAion Rmd, 
London SV 7 2 HF. 071-589 8947 
OABIiBS ContbwH*. 4 HoOywood Hoad, 
London SWU 9 HV. Q 7 1-352 0352 
IBLAIIEBiftitft. < 1 QU Bnapwn BaM, 
London SV 7 3 LR. 071-584 8993 
JAKg£ngfeh 2 Hattyiieod Rand. Lnodon 
SV 109 ht!o 71 -352 8692 
TOeSRASSElSfrigJMilftvndl. 

1 M Vtedamnh Bd>MeRnd, Loadon 

SVS 2 UL 071-731 7835 

KHANS Of KENSINGTON tadMa 3 RBiiasCon 

tad, London SV 73 ES . 071 -581 2900 . 

MASS B 8 STAWANT MtumckinM 

MS PaQMR PMm Rd, London SV 6 6 TO 

071-371 0392 

NATAI fntfloa 30* Non Kiiqpi Rund, London 
SV 64 RF. 071-731 6993 
nCTOtlA k ALUKT MUSEUM TH 6 K 8 W 
nSnUIANT, MermaUCdactk. 

Sooth Tcniionton. London SV 7 . 

WT- 58 T 2159 

M 88 BROTHS Engfth 771 Fdhui 

RnoL LnndH 5 V 8 SHA. 071-738 7311 
PALMS /Mba MOapdcnHiD RsuL London 
Vt 071-938 1830 

NNTUMWMm IttMbmRonL 
London SV& 071-370 6636 
raKnvRcaaoiGMAa 2 S 4 J 8 qom bm^b 

Road, London SVS. 071-373 9082 


BHAPSOOT Larin American. 2 S Ridmoad 
Vaj, Kenriafton, London VI 4 . 071-602 6778 
CAPE BODGE Awidt, 2 Luor Sqnm, 
Kcntm^on Church Sum, Londm WJ 4 EH. 
071-9384200 

CAPE BOUGE french 390 Kitw Rod, Cbrian^ 
London SV 3 SVZ. 071-3322226 
CAGE BODGE french ESS FUbra Road, 
.London SW 6 5 W. 071-371 2600 
S 41 TDKE Thai 237 Ekb Own Road, London 
• SVS 9 AH. 071-370 6899 
SALSO Italian, 15 BondnMi HaoOi London 
SW 3 1 NQ. 071-589 0390 
SAN PBEDfANO NaHaa 62 Ftalham Road, 
ChdacB, London SV 36 BM. 071-584 8375 
TANDOK OF CHELSEA Mbfl. ISlNhav 
l«d. London 8 V 366 M. 031-589 77«9 
THAI TASTE n»C IJOCnwa Road, London 
SV 74 ET. 071-373 1647 

UlfrIESUDl/Urneatai llBoudwp 
Pbee, Loodoa SV 3 INR. 47 1-584 4810 
TDUAD 5 U 2 tfafran. 4 Hollywood Rood, Uwha 
SV 10 9 HY. 071 - 378 X 890 
T 0 HSRS 9 TAUBAIfrEngftMnrt 
7 Indolnc Kwe, New Kiogi BM 
SVA. 071-731 5992 

TOPODDIO natal 39 Uxhciibe Sued. 
London VI. 071-727 1539 
TO FITS itattur, Vahdn Home, VNm Sum, 
London SV 3 l 071-489 2062 
VE 8 UNELLA Aatai 30 Bcaochamp Place, 
Louh»SV 3 . 071-584 1107 
VAUXRPSfiig&h 121 Vahon Street, Loniton 
SV 32 HP. 071-584 0204 

NORTH LONDON 

Till ACTORS ISnSATitaBift 

J 26 Sc JohnSftm,Wo*to(^ London • 

BpIV 4 NT. 071-837 07 U 

■EUA PASTA Itatav 105 Upper Sum, 

UhtM, London N 1 1 QN. 071-704 2654 

UNGAl LANCES Aidbri 253 Kcmiih Town 

Rd. London NVL 071-485 6688 


SHB.I JBfEBS Bretterfe. 

Corpeuert Mon Monh Road, Ult«ton, 
Laadon N 7 9 EF. 071-700 1858 
SMITHY'S VINE IAK 

Lethe Sum, London VOX 91 P. 071-278 5949 
VtLLOUCBBrS AMdem BHtth 
26 ftataa Street, London N 19 PS. 071-833 1380 
TIEN RESTAUIANT CWnoe 
15 MnanO HIE. London NI 0 JHA. 

081-444 6830 

EAST LONDON 

rnMnamAndo^uniim. MOSudan 
RtaL Oungfcrf tit 6AM. 081-524 5544 
FAT SAM'S American 376 J 7 S QuAreok Road, 
Ganlt HiO,lG 26 HV. 081-554 4484 

LONDON, SOUTH OF 
THE RIVER 

tHEANGB. Traditional I 
101 famadwVd . 

London SE 164 NB. 071-237 3608 
■ATTEBSEA BAIGE Cbm Awwlih 
Niae Elsa Line, London SVT 071-498 0004 
BELLA PASTA Mb n 2 Main Place, 
Kaploo, Snirey, KT 1 UT. 081-446 1466 
BELLA PASTA fatal 964 IDahrieh WD-e. 
Dnhrich, London SE 21 7 AQ. 081-693 9316 
BELLA PASTA fatal llUah !m 
Wimbledon SVW 5 DX 081-444 1909 
LA BELLA VHA fatal 30 QnmMom Rand, 
Baneoca, London SVS 3 JUL 071-720 5986 
BLADES fal/ Barhecun 9 * Loner Bkhaond 
Road London SV 15 ILL 061-789 0869 
IB I 0 N 1 AT nCTCU CLUB AmIMkUm 
95 N«htin(ric Lane, Oaphaai London SV 1 L 



117 . 

U BaOCHOK BMDELAIS frendt Otero, 

74 Banenei Rim, Bamem London SVU LHJ. 
071-7380307 

LA aOUCHON LYONNAIS frerth Afetm 
36-40 QooBaannra Rd, Bancnca, London 
SWI JRT. 071-6222618 
LEU 
467 Upper l 

Vcm, London SVM. 
081-878 2853 
CALKS Araserin 
573 Ganan Lane, 
Vantareath, 
London SV 1 I 3 SR. 
081-9 479616 
dOWTBERS frendi 
Stead. Br_ 
411 Upper Richmond 
RoadVen 
6 m Sheen. 
London SV 147 PU. 
081-876 6372 
THE DEPOT 

Ermrfo 

Tideway Yard, 
MmtUcffiah 
Street, London 
5 V 148 SN. 
081-878 9462 
.DOWNTOWN 
SHAMAN'S 
Continental 
1 CtsbcsM Sum, 
London SEI TOE 
071-4070337 
EMLTSMori 
l 96-98 


081-789 3323 
PAT SAWS American. 
1330 a Londoa Road, 
Narimtn 
London SV 1 6 . 
081-6791153 
HBCH 5 £uroptwa 
ssEm.ffin, 


AUBOfiST. 

JEAN french 
122 SL lohnh 
Wood, Hlyh Street. 

London NVS 7 SG. 

071-722 0400 
LEBBSTADBANT 
CAKAPACI done fremh 

. Ill Heath Sum. Hamotad, 

London MVS IDR. 

071-435 6000 

CBSTTBS Motfem CbnOncrriaC 
35 * The MaH. Upper Si btiafnm, 

London NIOPDl 071 -359 1*32 
CHOWSKNGMUngSmhuafi 
M 0 Sareafield Rood BaBdd 
MiddkKx, ENZ US. 

081-363 S 2 S 2 
CLffTO N I NN Trad, fnqfth 
*6 Oiteg H 3 . London NV 8 . 071-824 5233 
COTTONS RESTAUBANT JMiahan. 

55 Qalk Rmn Road, Camden, Londoa 
NW 1 IAK 071-482 1096 
CUBA LSXfi Qrfan. 72 Upper Street, London 
NIONY. 071 -354 8998 
DAPHNE Greed 63 Seyhan Street, London 
NVl OAG. 071-267 7322 
CAPS DBLANOET Cont/namai 3 
i NVL 071-387 19 


London SWUJ 
081-874 2808 
GAVDTS Brasserie. 

London SwS INa 
081-785 9151 
THE BEEN BOOM 
International 
62 LMCndwIDl London 
5 W 11 JRQ. 071-223 4618 
BOULTS fnaftMfrnnch 
20 Bdkw IuhL Loadan 
SVU 7 EB. 081-767 1858 
fiOBHATED NBVT Bbtra 
172 NonhcoH Rond, London 
SVU 6 RE. 071 -223 1637 


NO JACKET REQUIRED fteneft Anmkan. 
i LnwnderHSL London SW 1 L 


245 Lavender HB, 
071-228 9824 


TAT &OCS American 57-61 Heath Sl 

1-4313064 


i NW 3 . 071 - 
PAT SAM'S American, 

78 High. Street. Barm. ENJ 5 SN. 091-441 4171 
FONTANA AMOROSA fatal 1 Bl en h eim 
, London NVB. 071-328 5014 




rAURANT Morf. ffJEne, 
i Planer, Middlcacr HAS 3 PJ. 


JUST FRANCO faHsrffrench 

207 Livecpoid Road, btaum, Lnodon Nl LLX. 

071-6074112 

BRASSERIE JUUUS french 

39 Upper Streo; London NX QPN, 071-226 4380 

JUSTAIOUND THE CORNER french 

446 Pmehley Rood, London NVL 071-431 3300 

KIPLINGS fatal 2 Nonh HiH, EHghgua. 

Londoo N6. 001 -340 1719 

OffiZ UUKE AtaurioanffJrfl 

10 Snood Gron Road, Londoa Ml 071 - 2 Q 6 SSG 

MAGCUONE JAZZ tat* H» Kinds. 

10 Z Heath Sued. Haapumd, London MV 3 1 DR. 
071-4114423 . . . 

OLD WINDMILL Antdbh UHadlnHifli 
Sum, Bread ENS-iftl. 081 - 449 JB 74 
PASHA TbriUth 301 Upper Street. bUagioa, 
London NI. 071-226 1454 
UFKflEfrmcMScafoMt 12-14 Qentaonb 
Stem, London HW 1 . 071-935 0212 
fERA TUaSmSanttAed, 57-51 Qalk Fare! 

Road, London MVI UN. 071-916 0170 
THE POITMG SHED Atadarn Ehgtt 
Thr DoomSdirere Hold, JMj 
London NVl 6 QN. 071-723 7874 
CAFE MWCae JUflU VALE french 
30 Cfifmo Rood, London V 9 1 ST. 071-286 2266 
SAN FELKE fatal 

Gnat North Rood. Bw okmani Path. BJBre, 
(faa.AL 96 NA .0707 649930 


081-9403987 

MONGOLIAN BARBECUE taobv 

183 Lnrender Hffl, Bretnca SVIL 071 -228 2860 

THE NAKED TURTLE Mod, BigJFrmch, 

505 Doper Ric hmond Road Wot Loadon 
SW 14 . 081-878 1995 
HTAGORA fatal 

10 b Kew Road, Rkhmoad. 081-948 2443 
LA 1 WE GAUCHE french 
61 The CW, Londoa SEI ILL 07 V 928 8645 
SAMXATT INDIAN lESrAIttAllt fatal 
18 LreT Road. Putney, London SV 15 INL 

0 B 1 - 7 M 911 C 
SCOFFERS Anuricori 

6 Bnmaca Rbe. London SVIL 071 -978 5542 
SIAM cm ThailJapacm. 

• 4 BoMiinh High Street, LondM Bridge, London 
SK »Qa 07 1-407 0927 


75 Emt DoMeh Grem London 8 EZ 2 1 
081-693 3549 

SVDWT BRASSOE AM> BAR OE 
BmtAumSsn. 31-32 hmn Square, 
London SV 1 1 3 JB. 071-978 5395 
TASK OP 1 AJ fatal 
1 30 Usper Ridunand Rood Vm, Eaa Sham 
London SV 14 8 D 8 . 081-876 8326 
TWENTY timmCAIfiBB french 
20 Trinity Gredcna. London SV 98 DP. 

071-773 8838 

THE 8 RASSEU 6 french II Bcfiwre Rand, 
London SV 17 . 081-767 6992 
VIA VBN 8 T 0 fatal 321 
Street, Lonthm SV 15 . 081-780 lH 

WEST LONDON 

L" ARGO NoffwiiyA- fatal 222 Nonb Bod 
Road. London V 149 PP. 071-381 8905 
lALZACQHBfc french 

4 Vood Lure, London W 12 IAP. 081-743 B 70 
BELLA PASTA fatal 36 New Broadway, 
Bab*, London VS SAIL 011-979 7 M 9 
BELLA PASTA fatal 55-57 Qoceoimy, 
London V 25 HT. 071-792 2880 
■ELLA PASTA fatal 100-118 Qreemwy, 
London W 2 SHF. 071-229 2439 


Part 


BOMBAY PALACE North fatal SO Connaught 
Street, Londoa W 2 2 AK. 071-723 8855 
HUUSEBIE DU MARCHE AUX IUC 8 S 
Eur^perei 349 rtMobdto Rand, Londoa 
V 105 SA. 081-968 5828 
CANAL BRASSERIE Commena 4 
222 Kenml Rood, London VIO 5 BN. 

081-960 2732 

LA CAM BIANCA fatal 220 ! 

Rd, London V 6 7 NL. 071-609 I 
GUMBO YA-YA Creole. tl 4 al 
Road. London VII 2 BS. 071 - 221 . 

MAXH CHINESE 1 ESTAU 1 ANT Omen*, 
153-153 NonhfieM Aaenoe, EaUng, London 
W 139 QT. 081-567 1719 
PAUDMetflerreneah 175 Verebonoe Gnnc. 
London VU 2 F&. 071-221 6624 
BASASATANGSPAtal 
38 Qoc«hmk London W 2 JRS. 071-229 8417 
THE BOOM ATTHH HALCYON Modem 
British. 129 HoUud Pack Avcnac. Lota. 

VII 3 UT. 071-221 5411 
CAFE BODGE french 

31 K tnti na to n Port Rood. Pnrmbeflo, LooAm 
VI 12 E 1 L 071-221 4449 
SULTAN TAM 700 SI 1 ESTAC 1 RANT fatal 
7 hndnnrf Buffet. 57 Veribo nr ne Greta. 

London V 2 . 071 -792 2565 
VBONEAS Trad. Engflrti 
3 Hereford Bond. London V 24 AA. 07 V 229 5079 

WEST END & 
KNIGHTSBRIDGE 

LE BOTBOCABAPACE Aencft Aw. 

30 Vlncfcearer Street, Lomton SWI V 4 NE. 
071-628 3366 

ADAMS BESTAUBANr Madm EngOA . 
M»mI- lw»Cn«MBm^ OiiMMi r 
London WL 071-629 9400 
BABOON Alotan frtgfeh 76 Vwnore Street; 
Jareat Court, Laadaa VI 9 DQ. 07 V 2 Z 4 2992 
RAHNTHAI Thai 

2 M Frtfa sntci Loadaa W 1 V STS. 071 -437 8504 

BASIL 5 TBEET HOTEL Enafish 

The Dining Rooni I Bmfl Street. Kntghnbcid ge, 

London SV 3 LAH. 071-581 mi 

BELLA PASTA fatal 116 Baker Street, London 

VIM 1 L& 071-224 3334 

BELLA PASTA fatal 1 Cnabouru Street, 

London VC 2 H 7 AJ. 071-734 1246 

■ELLA PASTA fatal 

42 Dean Siren, London V 1 V 5 AP. 071-439 1140 

HUA PASTA fatal 6466 Doha Street; 

Londoa VIM 5 DH. 071-495 1110 

BELLA PASTA fatal 

30 Henrietta Street, Coatni Garten, London 

VC 2 E 8 HA. 071-838 8396 

BELLA PASTA fatal 10 being Street. London 

WC 2 7 AT. 071-639 5509 

■ELLA PASTA fatal 22 LckotcrSqam, 

London VCZU 7 LE. 071-321 0016 

BELLA PASTA fatal 

70 St. Mrerini Lm London WC 2 N 4 JS. 

071-836 0484 

BEXJL& PASTA fatal 

152 Vtemria Sum, London SV 1 E 5 LH. 

071-828 7664 
BENTLEYS Seatbod. 

11-15 SwaOow Street, London V 1 R 7 HD. 
071-734 4756 

■BSTOrBOTH WORLDS CAPE 

EngGshlAttterican Brimnii buercoaciimtti 

Hxnri. Gnnvenor Sqomr, Londba VIA 3 AH. 

071-629 9400 

IHATn North fatal 

37 Grew Qneen Siren, London WC 2 B 5 AA. 

071-831 M 17 

BRIO ST ORLEANS frenohMnwfcan 


46 dargci Sum, London VI Y 7 fJ. 

071-493 6130 

OARRKK VINE BAB k RESTAURANT 
Mf-I 2 Gankk Sam, Cmeu Gmden. 

London VC 2 E 9 BH. 071-240 7649 
GHQ DINING CLUB French /Engliiti 
21 Gower Street, London VC 1 E 6 HG, 

071-636 7612 
GOYA Spanish 

34 Ltmni Street. Pimlico, Londoa SV1P 1EB. 
071-976 5309 
HDULTS TnglHh I French, 

20 BcUenre Rood, London SVL 081-787 1858 

I S HHPANHU AuftMtalCh 

The Hirer Thames, vieuda Embankmeol, 

Londoa VC 2 . 071-839 3011 

CAPE mUEN DBS AMS DU YIN fatal 

19 Cfcmioue Sued; London VL 071-636 4174 

KANKHXA fatal 

161 Vhltfidd Street, London VI. 071 -388 0860 
KEMPS 7 »td taU/AKh 
Pdham Hold, IJQomweU Phce, London SV 7 . 
071-584 8444 

KEN UPS MEMORIES OF CHINA Chlnean 
6749 Ebary Streei Londoa SVL 071-730 7734 
DOGHTSBIDGE PLACE fatal 
116 KnUmbridDi London SV 1 X 7 PL 
071-225 3512 

RUTS RESTAUIANT Stathuan 9 Mona 

70 - 71 Vilion Road, Londoa SV 1 V IDE. 

071- 828 8S1 

LANGHAM'S BRASSX 8 IE French. 


071-229 5546 
KURD fatal 

1802 Omen Hand. London V 2 . 071-402 4695 
BOARDWALK SOHO 0^*1 

15 Greek Street. London V 1 V 5 LF. 

071-287 2051 

mm MUSEUM RESTUnAKT AMD CAPE 
tnformalKdectin Great Ramdi Sum, Loadon 
VCL 071-580 9212 

BHKRUSBrftbh 

16 BadHnfam Palace H o ad . Londo n 
SVIWOCf. 07182129(3 
CALDea RESTAURANT AND JCS BAX 
ftnUaniComfiieifal 13-17 Matyleboac Line. 
London VL 071-935 9226 
CABBU 0 S EngSrt french 

43 Bnetlng hw aTthce Rond. London 
SV 1 WO*. 07 1-834 01 19 
CASPERS BAR AND OBJ. American 


VL 071-453 
CASPERS IAR AND aiLLAmerfcwi 
2 Sl Aanfa Const Otadonr Street) Soho, 
London VL 071-494 4941 
TUB CAVDOXSN RESTAURANT 
MttSterraneatK 81 Jemyn Street, 
SV 1 Y 4 JF, 071498 2111 
CAVIAR BOOSE Brasserie. 

161 PkewURy. London W 1 V TOP. 
071-409 0445 

TB CHATEIO RBTAZBAHT 
Modtm British 

JtarlUrlnierOmiincntal Hotel, 
Samoa Sucl 
VIA 2 AMTO 1-915 2842 
CmSHAMS MwnHfaML 
atecaam Bdmda .20 Cheifaam Place, 
London SW 1 XI 9 G. 071-235 6040 


i VI. 071-436 6622 
THE LINDSAY HOUSE £nd&h 
21 Romaiy Street, Soho, London V 1 V 5 TG. 
071-439 0450 

LOS LOCOS AlnfanMnuricaa 

14 Soho Stre»iLmdtMWT 07 V 2 S 7 0005 

LOS LOCOS MndeanMawfan 

2 « RaMd StMH, London WC 2 . 071 -379 0220 

LUCUJJE BRASSERIE Sgahwl 

41 XditBUlR, Loadon SWIX 7 JN. 

071-2456622 

MAGNUS BRASSERIE fine/tch 

65 a Lons Aft*. Cerent Garden, Loadon WOE 

9 JR 071 836 6077 

THE MARQUIS RESTAURANT ContinenaL 
I 21 n Manat Street, Loadon Wl^ Y 5 HH. 

071-499 1256 

MAXDS RESTAURANT Odnese, 

143 Knighabfidge, London SV 1 X 7 PA. 
071-225 2553 

THE MAY FAR CAPE Albdem Brim. 

Mey Fair ImerContiinHil Hold, Berkeley 

Street London VIA 2 AN. 071829 7777 

LE METRO frencW&igfth 

21 Ban! Sued, KrtahotaMge, London 

SV 3 1 AT. 071-589 6286 

LB MISTRAL Gont french 

16 a Shorrt Gmdem, Coreal Gmden, London 

VC 2 H 9 AU. 071-379 8751 

MONTPfUAMD fatal U Mampdiec Street, 

X ni g h ab r idge. London SV 7 . 071-589 0032 

STMORTRSbAi 161 Vaidoor Saco, London 

V 1 V JTA 071-734 3324 

THE NATIONAL GALLERY HASSEBDXAFE 

Inf orma l / firfactic Trdaigir Sqaare, London 

VCL 071-389 1789 

OUBWTAL GOURMET Oriental 

32 Giret Queen Sued. London VC 2 . 

071-2297516 

ORMOND* RESTAURANT A CLU 1 
International. 91 . 

SWIY 6 JT. 07 I-T 
PALMS fatal 

39 King Sum, Cbvbu Garden, London VCL 
071-2402939 

PAPPAGALLTS luRanlAmtrkan. 

78 Mow Sued London WL 071-734 5182 
LE M.VHLONGRI 1 X 1 HSTAURANT french 
h famH anat Tba Rocheger HowL 69 Vincent 
Sqomc, London SVL 071828 6611 
8 ASA SAYANG St Asian. 

3 LekaBmPhc^ London VC 2 H 7 BF> 

071-437 45 S 6 
RASASAYANG 5 FAtai 
10 Frith Sum; Sabo, Lond on VIV STZ. 
071-7348720 
■OWLET* french I 
113 Jo 
071 -BO, 

ROYALS INDIAN CUEHNB Northern fatal 
78 Bow Sam, Londoa VCL 071-379 1099 
LE SALON DBS AMB DU V 1 N french 
11-14 Hcaorer Place, Linft Acre, Loadoe VO. 
071-379 3444 
SCAETO fatal 

I 0 i The Hmedireyt London SVL 071-222 3308 
SEUFSOVS RESTAUBANT fatal 
8 MoomSam, London VlY SAD. 
071-6290544 


SIMPSONS OP CHANCERY LANE Trad. Cmftth 
Binfflx London VCL 071-404 0212 

SOHO B1ASS8BIR Mecfiterrannan 
2325 OM Compton Street, London VIV jpj. 
071-438 3758 

SOLANGB19 8SASSEUE french TfatStionaL 
11 St Merte’e Coot. London VON 4AJ- 
071-240 9936 

SOL E UINA Modem fatal 

22 Start Garden,' Orient Garten, London 

WC2H MV. 071879 3336 

SOLYSOMBRAtambh 

4J Hctdbrt Rort. London W2. 071-792 3369 

SRI HAH TM 

14 Old Coamm Street, London VlV SPfi 

071 - 454^44 

Stems Modem British 

39 Dean Street, London VI. 071-734 5976 

TlDDVDOUTrtd Ingtth 

55 Shepherd MdkeL A^Ur, Unrtm VlY 
7HL 071-499 2357 

TRATTODA PKHU fatal 

17-48 Mowu Sued, Loadon WIT SHG. 

071-4991447 

VILLA STEFANO fatal 

227 HigbHoIbare. London VC1V7DA 

071831 7318 

HOME COUNTIES 

TUB ANCHOR Grtgfth 

togad! Gmn. PJabury. CYrlnafcrt. Hmca 

CM3 4QL 0245222457 

THE BAIN Aerthoum, 

1 1 Gortent Tunbridge Vella, Kent 

TNI 1 NIL 0892 5 10424 

■ELLA PASTA fatal 

78b Sooth Sued. Komlort, Emea RM3 1RX. 

0708-784114 

■ELLA PASTA fatal 

21-23 Chequer Street. St AOwa, HadbnUnre 

AL13YJ- 0727844264 

■■OWN* BRASSERIE Atodem Brithh. 

Frahkher Home, Ketnm Cue, Somhanqnea, 
Htmpehire SOI OCX. 0709832615 
CROWN AT ASTON E?fl) TngteMMed. 

56 Long Lane, Anna End, Non- S tt i cn lge 
HerebnUtire SG2 7MX 0438880060 
DKXBK lESTAUKANTlntnmatfonet 

Thr Rww, Wwlw.OfW, Vt U--- --'--*' Pater 

CM748S.03718S0723 

DONMNOTON VALLEY HOTEL 

BHHwHuwAtOilheYBfwL 

CHd Oxfari Road, Dmningion, Bertablie 

RCl 69Aa 0635-551 199 

HUNIErSAngfo-franch 

5 Jewn Sueeti wmcbcua; HmacMne 3023 
I RZ. 0962-860006 
HUNIEVS Anglo-french 
32 Bread Street, Ahcdert, Himpthin; 

SOM 9Att 0962-732468 

THE ITALIAN ROOM fatal 

2 Church Hffl, Laughton, EmcnlCIO I LA. 

001-5081167 

LA MEHHANA fatal 

Orthun W Hcnky, SurtP 

KT246QV. 0483 284343 

NUMBER U ITALIAN RESTAUIANT fatal 

10 Sauna Amreach, Vuginja Vaco-, Saner 

GU23 4OW/344843407 

THR PINK GEXANUM fng&MRrench 

Station Rort,Mdbeain, Roman Had- 

0763-260215 

RED LION HOTEL Mod English. 

High Snee* Cekhener, Hem. 0206-577986 
ROYAL OAK HOTEL D1NB«G ROOM 
Mo^En^cWi, High Street, ScuenotlB. Ken 

STRATTON BOUSE 5mAhOtw 

Lmdon Rood, Blggkdnde. Bert SG 11 8ED. 

0767312442 

THE SUN HOTEL EnaHth. Higfa Street. 

Dedham. Ewer C07 ADS. 0206-123351 
LA T1ATTOUA DA FRANCO EFRJPfO fatal 

VILLA IOMANA fatal 

20 Pa rt Sum. Cmberiey, Snmr G1H3 3PL. 

0276- 24370 

VAG AM) BONEdHKoal Grtl 

216 Lower Ugh Sum. WMftrt WDI 2JR. 

0923213520 

VEBKVS WINE EAR SrfUWi 8 Euni 
2 Vcarera Hold, Baknay, Era CM12 9DZ. 

0277- 656581 

SOUTH 

■ELLA PASTA fatal 

6-isr 

0865-7911 


BELLA PASTA fatal 

M Madn Street; Brighton, Sura BNI IJR 

0273-777607 

THE FEATHERS Afodem Ingllth, Market 
Street, Voodatoeh. 0993 812291 
JACK FULLER'S Engfth. 

Near Brightlingi 
Ben Suaaar TN32 SHO- 
042-482 212 

tBOONRAKERS Eng&hMemh, 

High Street, AJAkton BN26 Sm 0323 870472 
toms Continental. 

Kiogh Aim HacLTmll SL] 

SaUdmry SPl 2SB. 0722: 

SOUTH GARDEN RESTAURANT 
Qittonato/Poklna. 9 Bell Sum, Rnmiey 
SOS I (GV.0794S14428 
THATCHERS Ohm; french 
Lower High Street, Thame; OafeideMra. 

08421 2146 

TRATTORIA SORRENTO fatal 

132 HU Sir ec. TeddSngmn, Middx TV11 ITR. 

081877 4757 

WEST COUNTRY & 
WALES 

THE RARN french 

Voodkntk, Bredky Swke, BrkttL 0454 882222 

■ELLA PASTA fatal 

U Mlbom Street, Beth Aren BA1 IDE. 

(025462368 

BELLA PASTA fatal 

96 V hiaiidk a Rood, Bekml. Aeon BS22QX- 

0272-738887 

■ELLA PASTA fatal 

6 High Sired, Owfi£ VdetCFl 2AV. 

0222-399466 

■ELLA PASTA fatal 

23 The Fromenrte, QMhenhim, Gteuecucnhire 

GUO 1LE. 0242-577417 

BELLA PASTA fatal 

44-45 Qneen Street, Exact EX4 tSSL 

0392-77269 

THB BISTRO french 

I W23 Cokton Street, BrinoL 0272 2277S7 

BRIDGE HOUSE Modern Bnthh. 

3 Plow Bridge, Breimnqrr, Dood DTS 3AY. 


Omm 0X1 2AF- 


VhWmOenue.1 

071-7928482 


inadfMftft. 
re«t,Ptmlkn, 


London SVL 


MChtmon Steed, 

071821 7456 
THE COffffi BOUSE BitemKionet 
Hoed tauMMiicui, Hyde Part Cbrani 

I Hamilton Pkoe, Loodos VlV OQC 
071-4093131 

CYPIIANA RESTAURANT GrteMQnrM 

II Ratkbaoe Street. London VIP (AF. 
071-636 1057 

DAMABR) AegMMf fatal 
63 EedeO SumLondon WC 2 . 071-240 3632 
MUHIN SQllABE RESTAURANT 



^ (UK ONLY) ^ 

24HRS V 

0800393852 


(071) 930 2868 (Fax) 


o 

\ 


LECHAMPIGNDNSAUVAGE french 

24-26 SoHdk Rnd, Cheltenham, Qoncenenhire 

GLSO 2AQ. 0242-573449 

COMBE GROVE MANOR tntfish Country, 

Btaaknorter Hffl. Moakam Combe, Bmh. Awn 

BA27HS. 0225834644 

THE GREEN PARK BRASSERIE Anofo-french 

OM Green Part Station, Great Pert, Both 

0225 338565 

LORDS OP THE MANOR AAodem AmOh 
i Nr. Bcmnon oa-the-Vaeo', 
:GL54UD. 0451-820243 
MA8XWICKS fresh A French. 

43 Cara Sued, Briiud, Aren BS1 IHTY. 
0272-262658 

MOON A SIXPENCE A4od PrtncMfrlh 
An Bread Street, Both, Aren BA1 5IJ. 
0225460962 

THE NEW MOON Mod frenchflVMt 
Seven Dkk, Samdooc, Bath 8A1. 0225-444407 
WGHTINGALES RESTAURANT Modem 
6n^ ri y j4 -l5 Bafaley Square, CBfam, Bekaal. 

OAKES RESTAUIANT french 

169 Stad Road, Suond, Gtouemeohire 

GUllta 0453-759950 

ST- OLAVES COURT HOTEL A4bd European 

Mary Arehcx Streel Hxeaer, Dmn EX4 JAZ. 

0392-217736 

CAPE PIAZZA Natal 

The E^tfimn. Nnnh^u Streo, Bath BA I SAL. 
0225 429399 

THB POMP ROOM Informal IE ckctiz 

San Street, Bath. 0225444477 

TRATTORIA CELLAR RESTAURANT fatal 39 

Go- Street, Bart BA1 2NT. 0225 427919 

VELLORE Modem frw&h 

ThcBart Syn Hotel, Sidney Road, Boh BA2 6F. 

EAST ANGLIA 

THE CHEQUERS frtgihh 

HacnibitL Norwich, Morfolfc NRJH) 3AT. 

0603891657 

GREENS SEAFOOD IBSTMJIANT Seafood 
82 Upper Sl. Gflc* Sued, Norwkh. NoriaOt 
NR2 U-T. 0603-623733 


POMPS Pint a 6 fratm 2 Tackd Sard. Innrich. 
0473-250548 

QUESNSGATR HOTEL EnglMi 

3 Homo Avenue. Petethareagh PE2 IAX. 

0733 62572 

WAG AND IONI Cbarranf GrSt 
26 London Hart, Peterboreagh PE2 IAR. 

0733 66293 

MIDLANDS 

■ELLA PASTA fatal 
102 New Street. BinmngfaHn, V Midkodt 
B24HS. 021-643 1546 
CRYSTAL CANTOUSE RESTAURANT 
Cantonese, 29-10 Aanaati Street. Jaiahy 
Quarter, Birmingham BIS 6J A 021-236 5237 
THE FALCON Enqtatiffrvnch. 
tadeiUM^Nonhuttpeen, Nonhana NN7 ILF. 

HAPPY GATHERING RESTAURANT Cimonei^ 
134-147 Bridge Sum, Nonhampma, Nonhana 
NNI UH. 0604-21575 
MACKWOKIH HOTEL frencrtEngHrii 
Arthoame Road, Derby, Deibjrt ffe DE22 4LY. 
0332824324 

THE OLD PARSONAGE New fnatitft 
High OCOey, Sudfacd, SaNenhhm ST20 ONE. 

0785-284446 

LES PLANT AGGNETS french 

15 Donam Placet Lmmingun Spa CV32 3AA. 

0926451792 

SAN CARLO fatal 

4 Tcntde Street. Binaiiigfaaia 82 SBN. 

021-633 0251 

SLOANR frwicMMUL 
27-29 Qad Squats Hawthorne Rond. 

B15 JTQ. 

WHHTER8I HOTEL Mod. EngBdi 
Market Ptaoe, Oakham, Lricottrshiie. 
0572-756971 

NORTH 

THE ALBANY SBMtfatflh 
60M Hall Sum, Uvopoel U9EJ. 

051-236 2928 

ALEXANDER'S European 2 Ralin Coorr, 
CberterCHI JJV- 0244-340005 
BANK SQUARE CAFE BAR Cafe Wne Bar. 

48 Bank Square, Vflmrtw.dreihireSKP IAN. 

0625-53974 

BELLA PASTA fatal 

20-21 Silrer 5am. Durham OKI 3RB. 

091-386 1060 

■ELLA PASTA fatal 

9286 Dcunnte, Manehaur. M2 2QU. 

0618324332 

■ELLA PASTA fatal 4-S Angel Row, 
Nottingham NCI 6HL. 0602410108 
REURY HOTEL Dad fngfith 
Handfanh, VUmshrer, Cbeafaiic 5K9 JLD. 
061-437 OSH 

ERASSERIE ST. PHSI8 CrwAMfrench 
57-43 Peinoea Street, Maucfitstet M24EQ. 
0618280231 

DAVHPS PUCE Trad EmbA/GCMt 
44 King Street. KnttsfordwA16&OT. 

0565 03356 

FBCHEVS AT BASLOW HALL Madim 

European, Cihrer Road, Baalow 1 Dctbyihiie 

DE4S IRK. 0246-583259 

GANDHIS GO SOUIH Cajun Steak 8 frih 

Banin Areide, Barton Square, Maneheiw 

M3 2BB. 061832 8360 

LA BOOFPE OMirinrrttaL 

48a Caule Saco, LreopooL Meoeysde 

L2 7LQ. 051-236 3375 

TOE INN AT WHTTEWEU. FWl « GoiTM. 

VMimdl, Fores oTBowknd, CUlbcre^ 

L anearti re 887 JAT- 0200448222 

NUNSME) 1 HALLAtod french 

Tagpnrig k ew d . Son d iway, Quahiie CVS 2ES. 

ST WILLIAMS RESTAURANT 
btformal/EdeaK. Turk Miaarer, Sl VBhanti 
College, Yort. 0904 634830 
SHERLOCK HOLMES Mod. Srirrth 
Vioaria and Albert Hoed, Vacer Street, 
Maaduncr MED 9EA. 061832 1188 
STANNEYLANDS HOTEL Mod. I 
Stonacyhnda Rnd. VErnalon, t 


auaaala 

SK94ET. 


0625-525225 


WEAVERS RESTAURANT Mod A Had Milch 
15 War Lane, Hamnfc BD22 TOY. 0535 
643822 


SCOTLAND 


L'AUIERGE. 

36 Sl 1' . 

EH1 i SX IB1- S5S 5888 
THE LOBSTER POT Fretti Seafood, 

14 Voertanda Terrace Ghngnw G3 6DP. 
041-332 7013 

MARTIN'S RESTAURANT Modem Scottith 
70 Rom Street, Nonh Lane, Edinhoreh, 

2 3DX. 031-225 3106 


1 Derenrtire Gtnksa, (Baamw G12 1 
041-339 2001 
LE5 PARTISANS french 
144 HMStnn. Ediubmgh, Midhxhiau 
EH1 IQS. 031-225 1544 
THE RED SNAPPER AT THE COACH BOCSE 
Seafood 14 Hyndlind Rond, Ghana* GI2 9UP. 
041-339 6153 


FT/TRANSMEDIA APPLICATION FORM 

PLEASE COMPLETE BELOW USING BLOCK CAPITALS AND A BALL POINT PEN 


SWWJLX .1 
EROEY SHEET VINE JAR frmfc/MUt 
139 Ebniy Sued, London SV 1 V 9 QU 
071-730 5447 

THE EXCHANGE Trad. English, 

61-71 Vkuefi Sued; London SV 1 H OBV. 

071-2332248 

(PFADOAwtugiffft 

4*-30 Oea a ch uap P lm i Londo n SW 3 INY. 

071-589 3002 

TUKKEngBtHCunincntal, 

12 Nonh few .London W 1 R IDF. 
0714917261 

TOUS VHE 8 A 8 AM) DSTAttANT 
En 9 &MbnrtK 0 tal 123 Monut Street, 
London VI Y 3 UB. 071-491 1840 
41 BEAK STREET Cmfch 
41 Bert Street. Lenfon WHOLE. 

071*287 2057 

THE FOX HOUSE CUM tngGsh Bar, 


-MM 


v >- 'ifcTiJW 


VUMnJVUOOitr. 


-Surname. 


VKA^MASTERCARIV DELTA Account Ni 


First NameW. 


.Date of Birth 


Home Address. 


... and at over 3,000 restaurants in the USA - and shortly in Australia and the Far East! 


X 



IVutnntlg 






■m* tip ‘to. 

w* - 











Name of additional 

Correspondence to (oieasn tick] 

O Home 

□ Bu^ness 



i UK Pfc or its assignee to debit the 

I VISMUSTERCARIVDELTA account directly for afl 
t charges mcimed toy me or an authorised user and for my 
annual membership fee (anrentty £55). I undmtand aD restaurant 
charges (other than service, tfo and VAT) inclined by me. or an 
authorised user, will bn oBsei by a 25% credit when being debited to 
my Credit card account, I recognise the Transmcdh Cud is the 
property of the issuer and will be relumed by me noon request. 


Signature. 


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TRANSMEDIA EUROPE INC. 

11 ST JAMES’S SQUARE, LONDON SW1Y 4LB 
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WEEKEND ft 


FINANCIAL TIMES WEEKEND MAV UJMAY IS 1994 


HOW TO SPEND IT 


Dunhill 
joins 
Linley 
for the 
royal box 

Lucia van der Post on 
a joint enterprise 
which has produced 
some fine containers 




A lfred Dunhill, that most 
English of enterprises, has 
teamed up with Lord linley, 
that most entrepreneurial of 
royals, to produce a series of 
boxes - most of them designed to be humi- 
dors - on quintessential English themes. If 
the very notion of hours and hours of 
intricate effort devoted solely to producing 
exquisite boxes seems strange, it is worth 
remembering that fine wooden boxes, 
exquisitely wrought, minutely detailed, 
are part of an old-established English tra- 
dition. 

Lord Linley himself has long been 
intrigued by boxes and made his first one 
- a birthday present for his grandmother 
- when he was just 15. “It was made of 
English walnut and had secret mitre dove- 
tails. She uses it still - it appears regu- 
larly at the end of meals when it is used to 
hand the cigars around. So when n rmhfn 
came to me and suggested that we 
embarked on a joint enterprise it appealed 
to me at once. 

“My company had already made jewel- 
lery boxes for private clients as well as 
cabinets to hold spectacles, pens, watches 
and so I was delighted to explore the possi- 
bility of producing decorative boxes for 
cigars. 

“The team came up with the idea of 
using architectural thanes from the reper- 
tory of England's greatest architects - we 
had already explored architectural motifs 
in some of our furniture but none of them 
are exact renditions of any given period, 
more they aim to capture the flavour and 
the style.” 

Dunhill 'a brief was that it would provide 
the humidor expertise (Alfred Dunhill 
started up as a supplier of accessories to 
the newly chic hobby of motoring, but it 
eventually became best known for its 
tobacco business) and David Linley’s com- 
pany would contribute the dec orative con- 
tainer. 

It mig ht now seem politically incorrect 
to produce exquisite receptacles for carci- 
nogenic symbols of high living; but both 
D unh ill and linley say that all the boxes 
can be customised for other purposes - 
holding jewels (coronets and tiaras?), 
stamp collections, pens or beads. 

Two years on and the boxes are now 






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For your nearest stockist telephone 071 637 5167, 


A child of the sixties 
celebrates a birthday 

Lucia van der Post on Habitat, 30 years old this week 


David Unlay, right and craftsman, Mark Whitaly, discuss tits finer dstafls of an Inigo Jones box 

what Linley calls “disciple” boxes - these 
are smaller but in similar mood and are 
considerably cheaper. 

They are exquisitely made but, and Lord 
t .inlay is adamant about this, they are 
designed to be used. “The lovely thing 
about wood is that It gets better with age.” 

Each is made by hand from mainly 
English woods such as walnut, oak and 
ash, while ebony, satinwood and black syc- 
amore have been used for the inlay. Mak- 
ing the boxes involves intricate crafts such 
as marquetry, inlay and wood-carving 
("using wood to paint with”, as Lord Lin- 
Iey puts it), all of which is very labour 
intensive. 

“We are beginning to see many people 
who want something designed and made 
specifically for them and not for some 
abstract marker - that individuality is 
what these boxes are all about 
Who, you might legitimately wonder, 
could possibly be prepared to pay £L500 - 
the price of the smaller, disciple boxes - 
Qna of five designs: watercolour drawing of a let alone the 29.50Q or so that the larger 
Bruited ecStion Pugh box boxes c omman d? 

The boxes are currently on a world tour, 
ready. There are five designs (based progressing at a hectic pace with their 
loosely on the architectural styles of royal designer (and his wife) accompany- 
Christopher Wren, Pugin, Inigo Jones, Wh- ing them. Six have sold in New York, 
liam Kent and John Soane) and just 10 three In Chicago. This week was San Fran- 
baxes of each design. They measure 14ins cisco’s chance. Next comes Los Angeles 
high. lOViins wide and lOins deep scud, if and Hang Kong, while London must wait 
used with the humidor fitting (which is until Wednesday May 25 when they go on 
included in the price) hold 250 dgars. Each sale at Dunhill at 30 Duke Street, St 
style, though, has a much, larger run of James’s, London SWL 


I n 1964, when Habitat 
was born. I was a young 
mother in London, 
wheeling a great high- 
sprung pram up and 
down the King’s Road from 
World's End, where we lived, 
to Peter Janes. Sterne Square, 
where 2 went in search of a 
carpet or a lampshade or a 
chair that I Wmi and could 
afford. I was almost always dis- 
appointed. 

1 had four Soots of a terraced 
house to furnish ami little 
money or experience- Finding 
few things that I could bear to 
bring across the threshold, I 
began to think I had very pecu- 
liar tastes. Certainly that was 
how many shopkeepers of the 
day treated me, implying that 
anyone who stocked the kind 
of thing s they imagined I 
wanted would soon be out of 
business. 

My husband was completely 
nonplussed at how extraordi- 
narily picky his young wife 
had turned out to be. The 
trickiest scenes took place in 
the linoleum department 
where the prevailing tastes of 
the day ran to bright rendi- 
tions of shells, stones or 
ancient Greek mosaics. 

Then Habitat opened, on 
May 11, 1964. Oh, the relief It 
was perfectly ah right not to 
like fringed velvet three-piece 
suites, to want no truck with 
lampshades perched upon por- 
celain dolls, to prefer sturdy 
pale pine to Formica, to find 
visual repose in a simple white 
Japanese paper lantern, to pre- 



Jiriiet Giyim-Smith’s drawing for 
Hie opening of the first Habitat 

fer one's salad tossed in a 
hand-turned wooden howl 
rather than a plastic one. 

It is almost impossible to 
convey to the post-Habitat gen- 
eration just what the birth of 
that first shop meant to the 
young marrieds of the 1960s. 
The clarity and simp licity of 
the vision was stunning 

Sir Terence Conran's avowed 
mission was to prove that 
“functional can be beautiful, 
and beautiful must be afford- 
able". One design journalist 
was so carried away she felt 
“as if she had died and gone to 
heaven". It was much more 
than a shop - it offered the 
promise of a warmer, more 
sun-filled way of life. 

This wed. Habitat was 30 
years old and celebrated its 
birthday by offering a small 
selection of goods stocked by 
the original shop at the origi- 
nal prices - Japanese rush 
bugs at 18p, director’s chairs at 
£5 each, six Paris glasses for 
75p, bentwood chairs for HL50. 

AH these things are marvel- 
lous Illustrations of the longev- 
ity of what we have come to 
call good design. The director's 
chair, the bentwood chair, the 
paper lanterns, the plain iin«n_ 
the rush or willow ware, the 
simple wooden products - all 
have much the same timeless 
air as, say, an 18th century 
piece of Wedgwood creamware, 
a piece of Shaker furniture, 
French bistro pottery, 17th cen- 
tury English silverware. An of 
them should go on looking 
good for years to come. 

Tasteful, attractive, func- 
tional things. Habitat proved, 
did not have to come with 
fancy price tags. We still have 
at home, doing sterling service, 
some of the items we bought 
all those years ago - a couple 
of red Magistrate rush-seated 
chairs, white painted bentwood 
chairs, a black-stained ash 
desk top on trestles, storage 
units and countless earthen- 
ware casseroles, white porce- 
lain pots A la cr6me, white 
souffle dishes. I am as pleased 
with them now as I was then. 

If you look at Habitat today, 
it is good to see that Vittorio 
Radice, the managing director, 
has kept to his avowed inten- 
tion of talcing Habitat back to 
where it all began. 

“Sir Terence Conran," he 
told me a couple of years ago. 
“had a wonderful concept and 
as long as he kept to it the 
stores flourished. They were 

all in beautiful buildings that 

were special to their towns. It 
was only when he took his eye 





The main window of the Habitat shop In 196* 


off the ball and they took Habi- 
tat into huge sheds in edge of 
town sites that the merchan- 
dise deteriorated and the 
image became seriously dam- 
aged." The 1980s Shabitat jokes 


Look through a current cata- 
logue - or better still, visit one 
of the stores - and you will see 
the original concept is alive 
and strong. The stores today 
are light, bright airy places, 
just as I remember that first 
store in the Fulham Road. 

It has grown up a bit. in that 
the sofas look plumper, softer, 
mare welcoming. The textiles 
reflect our modem preoccupa- 
tion with the earthy and the 
natural There is some lovely 


needs. It has once again 
become a place that the design 
world feels it needs to watch. 

David Davies, the designer 
responsible for some of the 
most interesting retailing pro- 
jects around, firmly believes 
that today it is one of the best 
home famishing stores in the 
world. He says: “I travel a lot 
and I do not know of one to 


beat it for the mix of products, 
the incredible style and the 
very affordable prices. The tex- 
tiles, the cushions, the throws, 
the fabrics are exceptionally 
well-priced and so is.the furni- 
ture. Where else can you buy a 
really good chair for £49? My 
office is foil of them.” 

The 1980s’ jokes are drying 
up. 



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FINANCIAL TIMES WEEKEND MAY 14/MAY 15 1994 


PERSPECTIVES 


WEEKEND TT XV 


rerr 


The Financial Times has remaned 
documents which confirm the saHeni 
points of this personal account of 
events in a local authority social ser- 
vices department Names have been 
changed to protect the accused. 




A young shop steward 
called Helena, is propos- 
ing that a supervisor, 
Colin Maynard, he boy- 
cotted by onion mem- 
bers. He has been seen on the corridor 
where he worked until the manage- 
ment agreed to a union demand that 
he should be. banished to another 
bonding. 

■ I ask "What do you mean by boy- 
cott?” Another steward replies: “Have 
no -dealing* with him. Make it dear to 
him . that his behaviour is unaccept- 
able to the membership." 

Helena asks: “Is there a seconder?” 
A hand goes up. 

□ □ □ 

Maynard was in charge of a tram, of 
female administrative staff; several of 
whom were unhappy with the way be 
managed. They took the matter to a 

woman- only subgroup of the union. 
Following their complaints, and inves- 
tigation by the organisation's equal 
opportunities officer, a charge of sex- 
ual harassment was brought against 
Maynard. 

. He was then removed from the 
office- where his team worked. A 
union bulletin written by the wom- 
en’s convenor explained the disdpHnr 
ary action that was being taken under 
the sexual harassment procedure. It 
stated that Maynard: 

□ Was pedantic about work and 
would often send a document back to 
be redone because it contained one 
error, a misspelling or a wording he 
did not like; 

□ Picked on certain staff and asked 
them to re-do items of work; 
b Laughed about staffs e rr o r s, critic- 
ised their work in front of others. 
Criticised staff in their absence, and 
had reduced some to tears; 

□ Acted insensitively over funeral 
arrangements and other personal mat- 
ters and it unnecessarily diffi- 
cult far a female shop steward and a 
woman to attend union meetings; 

□ Consistently worried staff over 
small arithmetical errors on their 
time sheets; 

□ Kept secret records of staff sick 
leave; 

□ Constantly observed staff time- 

keeping; 

□ Interrupted people to correct them 
while on the telephone; 

□ Openly disapproved of staff taking 
maternity leave; 

□ Gave no praise to the women in his 

team 

Perhaps Maynard was a very 
unpleasant supervisor. But consider 
the wording of this complaint keep- 
ing “secret Biekngsg records" sounds 
mean-spirited and obsessional; but. It 
is only another way of saying that 
Maynard kept confidential sickness 
records. That was part of his job. 

That he “gave no praise to the 
women in his team” and “made life 
difficult for a female shop steward” 
impiity discrimination; but there were 
only women in the team. 

However, the suggestion of sexual 
discrimination primes the context for 
the one item of alleged behaviour that 
has a potential link with gender: that 
Maynard “openly disapproved of staff 
taking maternity leave”. 

Yet if he was guilty of this, it is not 
what he was accused at Whatever 
Maynard's faults as a manager, the 
one thing absent from these allega- 
tions is sexual harassment 
The union’s bulletin acknowledges 
that the sexual harassment charge 



As They Say in Europe 


< 9-44 Y *Slh/& 


Sexual harassment - or 
simply fascism at work? 


had “problems”, but said the inrinm 
agreed to participate to “ensure that 
the manager was never in a position 
to harass women in the way he had 
beat doing for seven years.” 

At the time, I tried to obtain the 
union's formal definition of sexual 
harassment without success. How- 
ever, the popularly understood mean- 
ing of the term is: repeated, unwel- 
come sexual overtures. And Maynard, 
a middle -aged married man, had to 


I looked for a reason not to Involve 
myself but found myself drawn in. 

I asked that Maynard's situation 
should be brought to a meeting open 
of the full shop membership, since 
only the women’s section had been 
consulted so for. 

The union representative was sym- 
pathetic, but was worried about the 
reaction from the women’s section. I 
sympathised. About a year previously 
1 bad been deemed by its convenor, 


A witness recounts the tale of a supervisor 
who suffered accusations and then a union 
boycott in the department where he worked 


explain to his wife that he was being 
disci plined for Sexual harasHmeptL 

Meanwhile, Maynard was deposited 
in a comer of the divisional director’s 
small office, working on a box-Uke 
affair about the size of a schoolboy’s 
desk. When I saw him there, 1 asked 
him how he was. He began to cry. 

Privately, a lot of people, both in 
the union and out of it, sympathised 
with Maynard. Several female col- 
leagues told me they abhorred the 
proceedings against him. But they 
mostly remained silent. One said ^ 
could not dissent publicly because she 
would then have to resign from the 
women’s committee. 


Deborah Kirby, to have raised some- 
thing inappropriately at a meeting 
where she had been calling for a 
strike. She shouted at me with a com- 
bination of righteous fury and hints 
of tears. I was paralysed. So, appar- 
ently, was everyone else. 

To his credit, the rep came back to 
tell me that the Maynard issue would 
be discussed at a full shop meeting in 
three weeks. However the meeting 
was cancelled three times. Then May- 
nard disappeared and interest in the 
issue waned. 

So. four months on, 40 people are 
discussing the foct that Maynard's 
small, balding form has been seen in a 


corridor near his old section. Helena 
asks that all those in favour of boy- 
cotting Maynard raise their hands. 
There has been no debate, apart from 
my question. 

I say: “Hang an - can we discuss 
this before we vote?” 

Helena says impatiently: “This 
whole situation was discussed months 
ago. There’s no point wasting every- 
body’s time going over the same old 
ground.” Several people murmur 
agreement. 

"OK," she repeats, “all those in 
favour . . 

A lot of hands govip. ' ~ T ' 

I interrupt again: I splutter that this 
is a human being you are all voting to 
do so mething to - someone who has 
already had to go through, being 
accused of something he did not do. 

This is greeted Iqt a chorus of jeers 
and sighs. But quite a few people are 
saying nothing. This includes at least 
one person who has said in pr iva te 
that she abhors what is going on. 

I am stung with anger “Whatever 
else Cohn Maynard did, he doesn't 
seem to have sexually harassed any- 
body - has he? All Tm saying is that 
we should discuss what he’s actually 
done, and...” 

1 was in t erru p ted by Deborah Kirby, 
the women’s convenor: “Paul, don’t 
you think you're being rather ingenu- 
ous here. The original complaint was 
made months ago. If you had a prob- 
lem with it, the women who made the 


Lunch with the FT 


Young master 
of moviedom 

Michael Thompson-Noel talks to Tim Sevan 


L ast night, the hit 
film Four Wed- 
dings and a 
Funeral opened in 
London, having 
gushed big revenues at the US 
box-office. At face value, Four 
Weddings is a quintessentially 
Rn gHuh film, which is why it is 
bring touted as the most suc- 
cessful such product since A 
Fish Called Wanda. 

Four Weddings was shot in 
London just over a year ago. 
Its male lead is the stiff-upper- 
lipped English heart-throb 
actor Hugh Grant - already a 
hist object in Japan and the 
US. It cost $5m, some of which 
came from the British televi- 
sion company, Channel 4. Pour 
Weddings' production com- 
pany, Working Title, is Lon- 
don-based. And its executive 
producer. Urn Be van, 36, could 
pass as James Bond. 

Yet spend two hours in 
Bevan’s company and you real- 
ise that the phrase “British 
film industry” is passe, despite 
pleas for subsidies for British 
film-makers. What London has 
become is the main branch 
nffky of the Rn g iighAm g na gp 
movie business. This is not to 
belittle it but precisely the 
Opposite, especially for a pro- 
ducer of Bevan's status. 

I met him at Alastair little’s 
restaurant in Soho, London, 
which is informal, minimalist 
and excitingly expensive. 
Sevan asked for a goat’s 
cheese salad, grilled sole, min- 
eral water, a glass of dry white 



wine and a double espresso. 
Very Hollywood Hills, which is 
not surprising; he spends half 
bis time there. He bag given up 
cigarettes, but was pleased to 
see my Marlboro. “Please go 
ahead,” he said. “I am the 
world's most dedicated passive 
smoker.” 

He is tall, athletic-looking, 
fresh-faced and frank: a skilled 
charmer but capable, no doubt, 
of considerable toughness. His 
first film, 10 years ago, was My 
Beautiful Laundrette. 

He trid me that Four Wed- 
dings and a Funeral looked 
Hke grossing $40m-$50m world- 
wide, which is starting to 
sound like an understatement. 

“Would that make it your 
biggest?" 

Bevan choked on his fish. 

“Yes, the biggest by a long 
way. L a u nd rette, for example, 
which cost Jim, didn't do great 
money though it made a few 
caress. Four Weddings, in con- 
trast, is going to spew money. 


It has had a fairly charmed 
run. Nothing major went 
wrong during its shooting, and 
it opened in the US with a 
huge push: brilliant reviews, 
very strong marketing, and 
then word-of-mouth.” 

“If it’s such an Bn gfish fnm t 
why open it in America?” 

“Oh - all quite deliberate. 
We platformed it British film 
audiences are susceptible to 
movies that have succeeded in 
the US. R went to No 1 in 
America with, no drop-off after 
rix weeks, and also to No 1 in 
France." 

Bevan’s partner at Working 
Title is Eric Fenner, an equally 
well-regarded young producer, 
whose first film - a hit - was 
Sid and Nancy. Oik of them is 
usually in Loudon, the other in 
Los Angeles, where they have 
a house in the Hollywood Hills. 
Both are married to actresses, 
Bevan to Joriy Richardson, 
Fellner to Gaby DeML 

They divide prefects between 
them. Their lifestyles have 
been portrayed as “flash cars, 
power wives, hot tubs and Sun- 
day night red-eyes to LA, the 
ftg Apple and back", and their 

ambition gg tote making 1 of sty 1- 
flfW W rMn-eial films aimwi at 

maturing yuppie audiences on 
both skies of the Atlantic. 

They have the track records 
to succeed. And &ey certainly 
have the hacking. Working 

Title is now a folly-owned sub- 
sidiary of PolyGram, of the 
Netherlands, a Mg-time enter 

tafruneot company with plenty 



TTov Bovarc track record and the backing to succeed awauto 


Of ambition 

Bevan says that be chanced 
into film-making. Otherwise he 
might have been a journalist 
“Originally, as an independent 
film-maker, Working Title 
lived hand-to-mouth. But Eric 
and I certainly learned how to 
produce movies. We have had 
our fair share of dogs, but also 
of had films that made money 
as well as good films that did 
well. Yet to do what you want 
to do as a producer you need a 
great deal of money behind 
you. 

“Prior to PolyGram. I spent 
99 par cent of my time trying 
to raise finance. The beauty of 
PolyGram is that I now have a 
great deal of time to spend on 

makin g fflms. 

“Movies are a Wt like the 
aerospace business, folly inter- 
national but also a cottage 
industry. The village where the 
movies' cottage industry is 
baaed is Los Angeles, so even if 
we shot all our turns in Britain 


we’d still need to have an 
office in LA. That is where the 
money, the distribution muscle 
and the talent Is - writers, act- 
ors, agents - even for quite 
small TV productions. Even to 
hire British talent, you have to 
go through Hollywood. Movies 
are talent-driven.” 

At present, Working Title 
has five projects in advanced 
development - serious talking, 
final budgets - plus ora being 
shot, about the Blade Panther 
movement, and about 20, says 
Bevan, in preliminary develop- 
ment - money being spent, a 
writer at work. 

“How about film violence?” I 
asked. “What do you think of 
the British government’s 
recent move to tighten the cen- 
sorship of screen violence and 
to crack down on retailers who 
peddle violent videos to uniter- 
age children?” 

He swirled his coffee. 

“In parts,” said the producer, 
“My Beautiful LaujtdreUe, 


your man - 
iri Versace 


complaint are just down the corridor 
from you.. 

“Why did you not just go and dis- 
cuss it with them? We’re not prepared 
to let the women of that team be put 
through even more distress just to 
satisfy yon." 

So the boycott is agreed with only 
one vote against - mine. After the 
meeting, I arranged to meet the 
union’s district officer. But when he 
discovered I was only a rank and file 
member, he said Tm sorry, I didn’t 
realise. I can’t talk to you.” 

Four of us then wrote expressing 
our disquiet to the nnirm. None of us 
received a reply. 

□ O □ 

So what happened to Cofin Maynard? 

I believe he carried on working 
where he was put - a mlddleeged 
man with a blot on bis record is not 
well-placed to seek alternative 
employment 

The process described above will be 
recognisable to anyone with even the 
sparsest knowledge of the history of 
injustice. 

The ingredients were classic: a 
backdrop of popular dogma, a scape- 
goat depicted as a monster, group 
conformity, the formidable leader who 
over-simplifies, and finally the 
bureaucrat who will take the power 
but leave the moral responsibility. It 
is called fascism. 


which was not cut 10 years 
ago, was extremely violent. 
There was one shot, I remem- 
ber, where a man’s head was 
smashed through a car wind- 
screen. Very violent If I were 
making Laundrette today, 
they’d probably want me to cut 
bits out Would I fight for 
every frame of that film? 
You're damn right 1 would, 
though I am against gratuitous 
violence. That is not something 
that interests me. Film-making 
is about truth and the honesty 
of the characters.” 

"All right,” I countered. 
“Let’s be specific. Let’s take 
torture. Suppose a script calls 
tar a character to be strapped 
to a chair and for another char- 
acter to take a cigarette lighter 
to his ear, or even to his eye, 
right there on screen. Why 
should that be necessary? Are 
there any circumstances undo- 
which a producer coold possi- 
bly justify such material?” 

Bevan scrunched up his 
eyes. “I hate to say this,” he 
said, “bat I think almost cer- 
tainly that the answer is Yes." 

The British end of the 
English-language movie busi- 
ness is in up-beat mode. “Here 
is an example,” said Bevan. 
There are five young British 
actors at present - 11am Nee- 
son, Daniel Day-Lewis, Hugh 
Grant, Ralph Fiennes and Gary 
Oldman - wbo are all under 42 
and so talented that you can 
open a picture with any one of 
them. That is extremdy rara" 

I said: “How about London 
film critics? Aren't they the 
lamest do^r 

Bevan's face cracked with 
laughter. Again he swirled his 
coffee. "They have often had a 
go at me,” he said. They’ve 
been there far too long. Always 
the same old faces.” 

At 3pm precisely, without 
indicating that he was 
remotely in a hurry or had 
anything better to do than sit 
and drink espressos, Tim 
Bevan said goodbye and eased 
his tall frame back into the 
Soho snarl Probably caught 
the red-eye. 


F ashion editors and 

writers have failed to 

tackle a significant 
problem again exer- 
cising the minds of well-born 
ladles across southern Europe. 
What does she wear on that 
first, aB-important visit to the 
‘ prison where her husband or 
lover Is held an a charge of 

corruption or embezzlement? 

The rules, which had been 
dictated by Milan’s elite San 
Vittore jafl.are under attack 
from Madrid's Alcald-Meco 
prison. The Italians turnup in 
a combination M beUa figum 
and haute couture. 

But politics plays a role: if 
your man Is a leading socialist 
you wear Versace/ far he is 
designer to those who farmed 
the once sturdy backbone of 

Walton u nriaTtatif tnilKnuflir ea, 

media stairs and Intellectual 
glitterati. It Is Krizla far Com- 
munists white Christian Demo- 
crats prefer Armani 
Spanish 1 scandals have 
shown that the rules are not 
as strict as I had assumed. Hie 
wives of the fanner governor 
of the central hank, Mariano 
Rubio, and Us in vest m e n t bro- 
ker, Manuel de la Concha, last 
weekend made their first visit 
to Alcald-Meco. For the 
occasion they wore T-shirts 
and. jeans In one case and a 
sober little suit in the other. 

Elisa Rodriguez L6pez, 
described as the former 
girlfriend or fianede of the 
fleeing ex-boss of the GuanBa . 
Civil, Litis Bolddn, even 
though she Is married to some- 
one else, chose an interesting 
anti-paparazzi combination for 
ho* appearance before the par- 
liamentary commission 
investigating the matter. A 
huge Kelly bag, a crumpled 
power suit and an Senate 
scarf held over her dark 


I imagine there is a good 
deal of telephoning prior to 
the decisions that are made in: 
such cases. It seems the need 
to present a defiant image 
looms large in such cases. ' 

My inquiries among French ■ 
female colleagues eHdtedthe 
information that something 
“fabuleux” for any such occa- 
sion would be tiie correct 
choice in France - “St Laurent 
or Mot, but not Lacroix”. In 
England, however, it would be 
well-cut tweeds and a loose 
cashmere sweater. 

But enough of this semiotic 
speculation - we must return 
to the question of the compar- 
ative reaction of Italians and 
Spaniards to their corruption 
scandals. The fashion test 
indicates that the Spanish 
are individualistic, an impres- 
sion confirmed by further 
study. 

This may be because Italy’s 
blanket approach, kicking oat 
everybody remotely associated 
with the authorities, is not 
working well The new govern- 
ment there will probably turn 
out to be Utile better than the 
old, and, as this week’s cabi- 
net list showed, it contains 
nastier elements than any- 
thing thrown up by the old 
crowd. 

As the last prime minister. 
Carlo Aze^ Ctampt, pointed 
out in an interview in la 
Repubblica, the process of 


formhig a government under 

Silvio Berlusconi in no way 
dep a rts from the standards of 
the long decades of the corrupt 
anaen regime. 

Ciampi Mnwaulf, as a non-pol- 
itician, had farmed a govern- 
ment in a of hours and 

produced what was thought to 
be the best administration 
Italy has enjoyed . for some 
time. But that went by the 
board and tradition has reas- 
serted Itself. 

In Spain, lessons have .been 
learnt, but maybe not by the. 
conservative opposition. The 
Madrid ABC wants to chase 
everybody out. 

It was, however, nice of it to 
recall a remark of the socialist 
prime minister, Fefipe Gonz- 
alez, of two years ago: ~We 
don't have a problem of cor- 
ruption that's any worse than 
that of neighbouring coun- 
tries. What we have is a prob- 
lem of pubBc opinion because 
of die dedskm of some people 
to turn this topic into & 
weapon and an instrument of 

propaganda” 

What do you 
wear on that 
first visit to the 
prison where . 
your husband or 
lover is held? 

The paper then argued Gonz- 
alez was corrupt because of 
the way in which Rubio and 
De hi Concha bad been treated 
- thrown into prison “in, 
defiance of - elementary 
rights", 

El Pais is more friendly ;to 
tiie government and rejected 
an Italian solution.. In a 
Jesuitical sermon, tt argued 
that many responses to the 
. present "crisis of confidence” 
were possible. But it was no 
use just getting rid of the 
racialists. - 

( " ”The socialist Titanic Is 
stoking, but its captain must 
not abandon ship until the 
whole voyage, and its crew, 
have-teen redeemed: only then 
can he resign or sack others, 
now he is hanging an until 
history absolves faint" -■ - 

In Italy it never crossed any- 
one’s minds to think to terms 
at absolution or redemption. 

But there are areas in wind 
tales of corruption among Ibe- 
rian folk do follow the roles 
set by others. Those governing 
the lifestyle of men fleeing jus- 
tice, and their lady friends, 
remain remarkably 
unchang ed* 

The magazine Intervfu last 
Monday carried a traditional 
picture of the fugitive Luis 
Rold&n on an anonymous 
beach “to underpants, accom- 
panied by half-naked women”. 

One of the compensations of 
associating with men on the 
run, rather than , those inside, 
has always been that neither 
they nor you have to worry 
about what to wear. 

James Morgan 

■ James Morgan is economics 
correspondent of the BBC World 
Service. 


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WEEK EMnn- 


FINANCIAL TIMES WEEK.END^MAY m WMAY_1S_1994 


SPORT AND MOTORING 


Battered 


Sailing 


survivors 


limp into last leg 



Keith Wheatley previews the Whitbread’s last dash 


W ith the Whitbread 
race poised for the 
final dash east 
across the Atlan- 
tic from Fort 
Lauderdale to Southampton, one 
wonders if it will be a Kiwi double. 
New Zealand Endeavour has an 18 

hour 21 minutes kad in the Tn^nri 
class; and Yamaha, skippered by 
Auckland yachtsman Ross Field, is 
10 hrs 26 mins ahead of he ar closest 
WOO rival, Intnttn JusHtia. Grant 
Dalton, in charge aboard NZE, is 
also close to his personal goal of 
being the fastest boat around the 
world overall. 

Dalton has always maintained 
that he built a maxi-ketch simply 
because research said it would go 
round the ffi.QQO-mile course up to 
four days Easter t ha n the smaller, 
lighter W60 class opposition. That 
prediction has proved over-optimis- 
tic since, with 85 per cent of the 
race gone. Endeavour is only U 
hours ahead of Yamaha. However, 
midsummer weather in the north 
Atlantic Is generally light an d this 
should favour the maxi class with 
their huge sail areas. 

Yamaha's fifth leg victory was as 
unexpected as it was welcome to 
the crow. They had consistently 
been second or third into every port 
and were thoroughly sick of the 

bridesmaid role. Ross Reid punched 


the air with delight as he crossed 
the line. He attributed Yamaha’s 
win to reading the weather cor* 
rectly, good tactics and excellent 
crew work. 

field gave the specific credit for 
getting file weather right to meteo- 
rologist Nik White, who joined the 
boat In Auckland. “Nik has limited 
sailing experience, worked for the 
New Zealand mat office for two or 
three years, is highly qualified and 
we don't let him up an deck," said 
Field. “He tells us what he thinks is 
going to happen and we position the 
boat accordingly." 

White may have set a Whitbread 
trend. Dennis Conner announced 
this week that he was intoning 
plans to sail on the last leg with 
Winston and sending weather 
expert Bill Biewenga in his place. 
Biewenga, a veteran of three previ- 
ous Whitbreads, has oftai worked 
as a oonsuhant for single-handed 
racers, giving them optimum 
weather routes by radio from a land 
base. 

Field’s elation was short-lived as 
the Florida stopover was consumed 
by allegations that Yamaha had 
broken rules relating to outside 
assistance during 1 eg one. The 
claims were made by deposed wom- 
en’s crew shipper Nance Frank as 
part of her US litigation against 
race officials and yacht owners. Zn 


essence, Frank claimed that her 
navigator, Adrienne Cahalan, 
(Field's fiancee) had been in tax 
contact with Yamaha swapping 
weather information from different 
parts of the course. This would be a 
(dear breach of standard yacht rac- 
ing rules if proved. Field, a former 
undercover detective with the New 
Zealand police force, obeyed orders 
when bis own lawyers told him to 
“take the Fifth" and say nothing . 

The International jury for the 
race took refuge in procedure when 
it declined to open a hearing 
because no current competitor had 
lodged a protest This was in spite 
of claims by race director, lan Bai- 
ley- Wfllmot, that he had evidence to 
authenticate Frank’s allegatio ns. So 
Field and his crew were excused a 
trial, but left with allegations bang- 
ing heavy in the air. Field declared 
himself "very bitter” about the out- 
come. 

Also shaking his head over cruel 
fate was Tokio skipper Chris Dick- 
son. They arrived in Fort Lauder- 
dale eight days after Yamaha, the 
last boat In the 14-yacht fleet Tokio 
lost her mast, and with it the 
rVian ^pg of winning the race she had 
dominated, five days into the leg. 

"The boat came very upright I 
heard a lot of feet running around 
on deck and someone said ‘Oh No. 
The mast has gone.’ It was snapped 



Vt. 




Leader lost: Tokio, which broke a mast on leg four, imping into Fort La u der da le eight days behind the fleet 


at the bottom spreader. There were 
broken bits everywhere," said Dick- 
son an reaching Florida. “1 have 
never experienced anything like it, 
we felt numb, really numb. It 
crossed our minds to pull out of the 
race when the chance of winning 
evaporated. But after a while the 
crew, bo a man. decided that we 
would finish the job.” 


The man with the biggest hurdle 
to face is probably British sailor 
Lawrie Smith, skippering Intrum 
Justitia. They had been lying sec- 
ond to Tokio, had virtually dis- 
counted a challenge from Yamaha, 
and now find themselves having to 
fight to get bade in the race. 

-It’s terrible. You feel it's all 
going against you,” said Smith over 


the misfortune that had his boat 
parked in the Doldrums while 
Yamaha disappeared over the hori- 
zon. 

“However, luck tends to even 
itself out. We hope there will be a 
lot of breeze in the next leg; we 
always do well in that.” 

New Zealand’s domination of the 

Whitbread has obviously led Wales 


to think that there may be anX-feo- 
tor in the race favouring small 
proud nations used to handling 
sheep. The first entry for the 1997/8 
race has just been announced in 
Cardiff. Welsh Dragon will be skip- 
pered by the Anglesey-born interna- 
tional helmsman Edward Warden- 
Owen and is backed by the Cardiff 
Bay Development Agency. 


J ohn Major’s lament that 
“summers will never be the 
same", after the death late 
last November of cricket’s 
great commentator, Brian John- 
ston, has quickly passed into popu- 
lar sporting language. 

A book about Johnston has been 
produced, with that title and last 
weekend, BBC television broadcast 
a programme in tribute to John- 
ston, with that name. One of the 
programme’s speakers was Major 
and it was striking bow much bet- 
ter he is at talking about cricket 
than talking about politics- 
But why separate the two? There 
is a hit-and-miss tradition in 
England of using cricket as an aid 
to public affairs and preaching. The 
prime minister knew enough of it 
to present President Bush with a 
cricket bat on an official visit to 
the US, admiring as he did so 
America’s victory over England in 
the only cricket match the two 
countries have played, in the 1850s. 
Missionary diplomacy at its best, 
with En gland humble throughout. 

As far as I know, history does not 
record the president’s reaction to 
the bat Given the prime minister’s 
love of cricket, perhaps history 


Cricket/Teresa McLean 


Manifesto for a sporting right-hander 


would have a happier future to 
record for him if he would let his 
favourite game decorate fate politi- 
cal Hfe once in a while, perhaps as 
an agent of eloquence. 

It does not seem possible, alas, to 
keep politics out of cricket The 
d’ Oliveira affair is one among 
many examples of that But might 
not cricket be allowed to cheer up 
politics a bit? 

Every time English politics goes 
Into a grim patch, 1 remember C 
Northcote Parkinson's comment in 
his famous “Law of Delay” on 
cricket as a model for democracy. I 
can see that it might hove less 
appeal far a government in power. 
“Most would agree that Parfiament 
must continue to exist While it 
does so, the two parties must play a 
game modelled, apparently, an that 
of cricket: a game in which no 
hmhfig« can be prolonged for ever." 

Some politicians have a good go 


at it, though. Stanley Baldwin, 
renowned for his “safety first” poli- 
tics, sometimes used clever tactics 
in playing safe. He was fond of 
cricket ami when A P F Chapman 
led En gl ami to victory over Austra- 
lia in tile winter of 1928/29, Bal- 
dwin salt him a telegram designed 
to keep both countries in good 
humour. Chapman kept it all Us 
hfe. 

“Hearty c on gr atu lations on vic- 
tory after a most gallant fight of 
which both sides may fed proud.” 
A good bit of medium pace polite- 
ness on a sensitive Commonwealth 
wicket 

By the time that was sent, no one 
publicly attr i bu ted to cricket the 
grandiose serenity attri buted to it a 
generation earlier. Bishop Wefldon, 
for instance, onee Bishop of Cal- 
cutta, was a man devoted to travel 
who had accompanied the 1903/04 
En gHah Test team to Australia, on 


the Oronles. When he returned, he 
wrote a “breezy and genial intro- 
duction” to P Warner's book How 
We Recovered The Ashes, and used 
It to sing the praises of interna- 
tional cricket matches. 

“They tend as well to excite and 
promote a kindly feeling between 
the nations that take part in them. 
They have brought Englishmen to 
Australia and Australians to 
England. They associated them as 
members of the same great 
national family.” 


I nspiring himself as he wrote, 
tiie bishop ended up declaring 
that the reason Australia and 
New Zealand had supported 
the mother country in her recent 
war with South Africa was “the 
fostering of mutual respect through 
international athletic competitions 
at home and in the colonies.” 
Bishop Welldon was one of a 


number of sporting idealists who 
saw cricket as a tool of imperial 
peace-making in the early years of 
the century. 

The 1932/33 Bodyline tour had an 
opposite effect, with diplomatic 
relations between England and 
Australia in danger of being 
severed and Downing Street calling 
special meetings to fry and cope 
with the furore arising from Doug- 
las Jardine’s “leg theory" bowling 
tactics in Australia. 

Jardlne remained sQent until the 
weight of pressure and the outspo- 
ken reporting of the tour prompted 
him to speak, back in England in 
February 1933, praising his men 
and quoting Kipling. 

His men stood by him. Body line 
was a cricket issue which only 
attracted pronouncements by pub- 
lic figures attempting to keep the 
peace. It was the sort of cricket 
Issue that the government was glad 


to leave behind, although England 
had won the series. 

Not long ago the Pakistani gov- 
ernment and, to a lesser extent, the 
English government were faced 
with a cricketer who mixed cricket 
and politics in a way few have 
done. His country’s government 
denounced him In high style and 
his country’s cricketers were glad 
that when events reached a peak, 
he was past his best with the bat 
and they had no reason to. speak. , 
Aftab Gul was a student leader in 
the frenzied years of the late I9Qte. 
He played cricket for Lahore Uni- 
versity, where he was a law stu- 
dent When England toured Pakis- 
tan in 1968/69, Aftab was selected 
for the Lahore Test because, it was 
said, students threatened to disrupt 
the match unless he played. 

ffis scores of 12 and 29 did not do 
modi to glorify the cause of stu- 
dent reform, there were some 


"minor riots and skirmishes” and 
the Tour was a troubled one. 

Aftab was a talented, but erratic, 

opener and in three years played la 

six Tests. Hfs politics led him to a 
spell abroad and when Pakistan's 
government claimed to have found 
ground-to-air missiles in his 
garage, it refused to readmit him. 

He applied for political asylum in 
Britain. It was not granted and, 
quite rightly, cricket was not men- 
tioned as his government vehe- 
mently deplored his politics. 

Clearly the tone to adopt when 
bringing cricket into politics 1 b a 
peaceful one. Public speaking vift 
little toadies of cricket is a ram 
ami neglected art, to be carefully 
used. I think Bishop Welldon 
tended to excess. Bat then Arch- 
bishop Temple tended to the philis- 
tine with his sole remark about 
cricket “I have always looked on 
cricket as organised loafing;" 

It is probably time for a senior 
politician, rather than a church- 
man, to take Iris chance and talk 
cricket As Johnston used to say, 
with a twinkle in Us eye, to anyone 
who was nervous, “Go on. It’s 
always worth a go. Ton never know 
what might happen.” 


Football/Peter Berlin 


Can the FA Cup 
deliver quality? 


Motoring 

Car for a soft day 


T he Irishman and I 
looked out at the 
Atlantic rollers 
breaking on a rocky 
beach. “Sure, ’tis a nice soft 
day," he said. I knew what he 
meant It was fine rain, but it 
would have soaked through a 
shirt and sweater in about two 
minutes. Yet the wipers of the 
Saab 900 convertible on slow 
setting easily kept the screen 
clear. 

Many might have thought 
that Ireland, where all those 
soggy Atlantic fronts first hit 
land , was an odd place to hold 
the inte rnational press launch 
of a convertible. I would not 
disagree. But there was 
method in the sensible Swedes’ 
apparent madness. 

The 900 convertible is not 
one of those Hair-weather soft- 
tops. The hood is thick and tri- 
ple-layered, with a proper glass 
back window incorporating 
defroster elements. And all you 
have to do to turn a virtual 
saloon into a completely open 
' car is release two clips and 
press a button. Then, with a 
whirring of electric motors, the 
hood folds behind the back 
seats and disappears under a 
hard panel, flush with the body 
top. 

Lowering it takes about 25 
seconds. Irish weather being 
what it is, I was relieved to 
discover it went up again just 
as quickly. The 900 convertible 
really is a car to use confi- 
dently when, the forecast is 
bright periods and frequent 
showers, heavy at times. 

There is a choice of three 
multi-valve engines: a iso 
horsepower, 2.3-litre; I85hp, 
two-litre turbo; and lTOhp, 2.5- 
litre V6. Five-speed manual 
transmission is standard. A 
four-speed automatic is a £995 
optional extra on the 2.3i and 
2.5 Vg, but not the 2.0-litre 
turbo. 

Compared with the three- 
door 900 hard-top coupd, of 
which more in a moment, the 
convertible has slightly softer 
suspension. The ride was excel- 
lent on. the nearest thing to a 
motorway you can find in 
south-west Ireland. But on the 


I f the Football Association 
succeeds in buying Wem- 
bley Stadium, it could 
make the crumbling mon- 
ument more attractive to foot- 
ball fans by improving the 
quality of entertainment pro- 
vided by its own FA Cup. Over 
the last two seasons both semi- 
finals as well as the final have 
been, played at Wembley - but 
the only people who can have 
enjoyed the experience are 
Arsenal fens and accountants. 

Wembley is the only English 
football stadium that can seat 
more than 50,000, albeit in 
extreme discomfort. It is the 
only ground where so many 
people - 335,000 - could have 
been bored witless by the nine 
hours of dreary FA Cup fore 
that stretched from the start of 
the Arsenal v Tottenham semi- 
final last year through to the 
dying minutes of extra time 
between Oldham and Manches- 
ter United last month. 

The Manchester roar that 
greeted Mark Hughes' late 
equaliser against Oldham pro- 
vided a reminder of the won- 
derful atmosphere Wembley 
can generate. 

The omens are good for 
today's FA Cup final. The sun 
will shine. The perfect pitch 
will glow a beautiful green. 
The stands will be decked in 
royal blue and rich red. United, 
cocks of the north, will carry 
the aura of deserved champi- 


ons. Glenn Hoddle, manager of 
Chelsea, the plucky southern 
underdogs, may even offer us a 
precious glimpse of his grace- 
ful talon tfr. On th e other band 
the spectacle may be under- 
mined, yet again, by the weak- 
nesses of the two teams: Unit- 
ed’s are in their heads, 
Chelsea’s in their feet 


U 


nlted, an almost- 
great team, are also 
a team of many 


ing their worst performance of 
the season for their most 
Important match, were gutless 
and witless in the away leg. 

This is the second United 
paradox. This afternoon's team 
stands on the verge of great- 
ness and on the verge of 
break-up. The regular first 
team contains seven non- 
English players. They cannot 
all play in European Cup 
games. So manager Alex Ferg- 
uson must contemplate 



being a much more limited 
side, offer just one: the contra- 
diction between the style of 
Hoddle the player, and of 
Hoddle the manager. 

In the league this season. 
United did not show the weak- 
ness under pressure that 
destroyed them two years ago. 
When Blackburn closed in. 
United raised their game. Paul 
luce plucked draws from 
defeats with late equalisers 
against West Ham and, cru- 
cially, against Blackburn. 

United showed the same 
resilience against lowly Old- 
ham last month. But before 
that, they had been outplayed 
for an hour and three-quarters. 

United have been below their 
best in other big cup matches; 
they lost the Coca Cola cop 
final 3-1 at Wembley to Aston 
Villa; they threw away a three- 
goal lead against Galataaaray 
in the European Cup and, sav- 


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One player at risk is Mark 
Hughes, an old favourite but 
thirtysomefhing and a Welsh- 
man. He may find hfmwrif dis- 
placed by an English goal 
scorer because United’s tally of 
80 Premier League goals repre- 
sents a poor return for the 
pace, imagination and variety 
of its attacking play. 

Over the. last two seasons, 
Ferguson has been prepared to 
loosen his control over the 
team and pick more unpredict- 
able attacking players. The 
tough, diligent Brian McClair 
has been replaced by the rough 
but delicate Eric Cantona; 
Andrei Kanchelskis and Ryan 
Giggs - out and oat wingers - 
play every week, replacing 
safer options such as Mike Phe- 
lan, Mai Donaghy, Clayton 
Blackmore even Lee Sharpe. 

Giggs still has games where 
his brain seems to be in neu- 
tral; and Cantona, who seems 
to be sent off every time 
United play in black, is wanted 
for questioning by the FA. But 
United have survived his sus- 
pensions because of Ferguson’s 
careful and costly policy of 
stockpiling reserve players, 
many of them hardly needed 
because the team escaped seri- 
ous injuries thin season. 

Chelsea have not been so 
lucky, striker Mark Stein only 
returned last week, but scored 
twice; and Hoddle has been 
nursing injuries all season. He 
will probably only pick himself 
as substitute. 




Tough guy: Glenn Hodda, the Chetsee manager 


The difference between the 
style of Hoddle the player and 
Hoddle the manager causes 
much confusion: Hoddle the 
player was elegant and imagi- 
native - bis team, for the most 
part, is neither. 

There is a misconception in 
British football that toughness 
means running around kicking 
people. For that reason Hoddle, 
an inept tackier, was accused 
of a lack of toughness. Yet 
every time he played, Hoddle 
knew the “tough" men would 
rick him - but he still played 
his way: holding the toll in 
midfield, creating a little time 
and a little space until the 
right pass was available. That 
required real toughness. 

Hoddle’s team reflects the 
tough and practical side of his 
nature. He has made the most 
of his resources, and his team 
is hard-working and well-dril- 
led. Its greatest strength is in 
defence. Hoddle has bought 
Gavin Peacock and Mark Stan 
- a panic buy but the right 
panic buy. But he has also sold 


skilful players. He received a 
good price for the ageing Andy 
Townsend, but parted with two 
younger talents: Graham 
Stuart to Everton and Ian 
Pearce for a knock-down 
£390,000 to Blackburn. 

Both had a reputation for 
unpredictability. Perhaps 
Hoddle did not feel Chelsea 
could afford that yet He will 
be happy today if his team 
repeats the pattern of this sea- 
son’ two league games against 
United: brave, resourceful 
defence, a goal from Peacock 
and a 1-0 win. 

If Wembley is treated to a 
repeat of the first of those two 
league games, when United 
played with verve and flair, 
and Chelsea defended with pas- 
sion, it will be a great after- 
noon. If the two teams repro- 
duce their second meeting, 
when sullen United were sti- 
fled comfortably by Chelsea's 
defensive approach, the fans 
will have time to reflect on 
bow hard and cramped Wem- 
bley’s seating Is. 


rough switchbacks that pass 
for country roods, it was not 
difficult to make the V6 auto- 
matic's front suspension touch 
the bump stops. 

To be fair, I was driving it 
much harder than a typical 
owner would and the manual 
gearbox 2L3\ and two-litre turbo 
- lighter at the front end than 
the two-pedal V6 - were less 
inclined to use up their suspen- 
sion travel. 

Saab has gone to great 
lengths to make the convert- 
ible body as rigid as possible; it 
is 70 per cent stlffer in torsion 
than the previous one, itself a 


Stuart Marshall 
tests the Saab 
900 convertible in 
the Irish rain 


standard-setter for freedom 
from shake. 

It would be too much to 
expect the 900 convertible to be 
as rock-solid as a 900 hard-top 
coupd, but it was only when 
driving on the roughest 
stretches that I felt a suspicion 
of sideways movement through 
the steering column. (As a pas- 
senger, it was not noticeable.) 

At moderate speeds, there is 
little noise or wind buffeting 
with the hood down and side 
windows up - not much more 
when all four side windows are 
retracted by the single touch of 
a button. Full-sized people can 
sit comfortably in the rear 
seats and the boot is of practi- 
cal size, with an opening like a 
cat flap in the back seat allow- 
ing skis to be carried. 

Seats are leather-trimmed. 
The driver's air bag Is standard 
and the front passenger's an 
optional extra, although both 
have belts that pre-tension on 
impact The front screen pil- 
lars - stout enough to support 
the car's weight - inevitably 
are a bit awkward to see 
round. And, like those of all 
soflrtops, the 900' s hood does 
create a small blind spot in the 
rear quarter. 


Unquestionably, the most 
joyous one to drive is the two- 
litre turbo. Saab says it is good 
for L43mph (230kph). Modi 
more importantly, it is by far 
the quickest from 40-fiQmph in 
fourth gear and 50-75mph (60- 
I20kph) in fifth. 

Safe, rapid pick-up, not tyre- 
smoking standing starts, is 
what matters in the real worid 
although, for the record, the 
turbo’s 0-60mph ((P96kph) time 
is an impressive eight seconds. 
At fairly low revolutions, the 
turbo produced enough torque 
(pulling power at a given 
engine speed) to amble gently 
through villages in fourth or 
fifth gears. Given its brad on. 
the open road, the twin bal- 
ance shafts kept the engine as 
smooth as a six at high resolu- 
tions. 

The 2JS V6’s performance is 
quite close to the turbo’s, while 
that of the less powerful 2 A to 
more than adequate for most 
900 convertible buyers. 

The firmer suspension of fee 
coupe might have made for a 
joggly ride on Ireland’s crumb- 
ling byways but, on the 
smooth roads of Italy, the hard 
top was a delight “You will 
said Saab’s veteran rally ace, 
Erik Carlsson, as I set off tha* 
morning, “find our new . 900 
coupfi is a real Saab." 

Prices will be £23^96 for the 
231, £27,885 (&5 V6) and £27,9* 
(two-litre turbo) when they 
reach British showrooms next 
month. 


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GARDENING AND OUTDOORS 


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soft di 


W hen the spring winds 
were -stiQcoId.X stood 
in the gardens of Dr 
Jack EUiott, one of 
oar greatest plantemen, and n-sW 
him how a keen gardener could 
became a better gardener. 

Elliott ought to know. For years, 
he tended one of the best c oTlprWnnc 
of rare bulbs in Britain He has 
grown more rare alptnes beautifully 
than ytm or I have killed in the past 
10 jeers! fie has a skyblne Tropaeo- 
hnuiazuremn in flower in his odd 
greenhouse arid a Magnolia procto- 
riana in the main garden He has 
judged the finer points of hardy 
plants in- national shows and pre- 
sided owar their great societies. 

IfjCwas an- eritrichium, I would 
growforhhn -'‘and m t just because 
nvw&af hte patt fewrirmaT career was 
sperit^aa GP. most recently in Ash- 
ford^fenfe. The EUiott view is many 
side^ipt the main advice for self- 
impr^euient is clear: join a special- 
ist national society and buy a load 

nf orit In Bfltfi tormpfl wtfh oi fl mn 


can then grow the rarities which 
the societies send you from their 

■aaJ HmIm 


Doctor, about my eritrichium . . . 

Robin bane Fox seeks advice on plants from Jack Elliott, one of Britain's most revered gardeners 


His advice is my advice, except 


that he has been better at living up 
to it On two Sundays in the year, 
he opens the gardens at Coldham, 
litt le Chart, near Ashford, and each 
time those in the know rfeanmA on 
his plant stall and clear the better 
t hi n g s out soon after opening time 
at op™ 

Everything is grown in a proper 
garden compost the MW may be a 
long road but where else do you go 
to buy the latest hardy TWaar-ias 
properly-rooted Haberieas, the new 
Mne veronica from the Caucasus, 
and things such as Verbascmn ere* 
ticnm, which ought to be yellow- 
fiowmed but which I have never 
even seen? 

The next Sunday opening is July 


ham is within striking distance of 
the Channel ports «wij within the 
fall-out zone of the new Channel 
rail link . Since mid-April, coach- 


loads of French viators have been 
tripping across to nearby Sissin- 
gfrurst, pre-booked and undaunted, 
therefore, by the changeable 
weather. There have even been one 
or two French at Coldham, includ- 
ing a visitor keen eno ugh to ask for 
the blue Tropaeolum. 

As a past president, Elliott recom- 
mends membership of the Hardy 
Plant Society at Little Orchard, 
Great Comberton, Pershore, 
Worcestershire. Like the Alpine 
Garden Society, it issues superb 
plant lists and helps to Take your 
ideas of the possible. In my own 
garden, I realise how I owe to 
societies my particular plants of the 
month, the cream-yellow broom 


vj unuiom su m buijuuo 

yellow and black-flowered Prophet 
Flower, or Amebia. 

Easy plants of this type come to 

your notice through, other experts' 



1 


writings but will seldom turn up in 
the local garden centra The 
of society membership and seed- 


A numi ft u yuiMumuij non aunqi uj 

small gardens where the hagfttrnft 
can be op of specially-chosen 
small hardy plants and then giv en 
heig ht with an upper layer of tall 


shrubs, small shrubs end climbers 
on both. 

It is far easier to design an origi- 
nal and lasting garden by this route 
of self-improvement rather- than by 
following a colour-chart of a book 
and its advice bn siting a barbecue 
and planting the spreading green 
Primus Otto Luykens. 

How do yon raise new seeds when 
you are sent them? You sow them 
in a light mixture of peat, perlite 
and sharp grit: you surface them 
with about %in of grit and when 
yon transplant them, yon move 
them into a more solid compost 
with yet more grit Like most 
experts of his generation, Elliott 
remains a convinced gritter. order- 


course. Cddham’s gardens have odd 
terms of almost anything between 
the tenniS-COUrt and the pl«ring 
design of occasional beds. Near the 
house, the ftiimatp is vastly kinds* 
than mine and I excuse myself from 
ioimne the long list of know-alls 
who have failed to diagnose a 
rather spiky shrub with dark leaves 
as a PittOSpOrmn gnmnalttrn But I 
did notice tips which we can hunt 
up in our books: the pale yellow 
Anemone a»maTiii l which is Sin 
high but nonetheless lights up an 
entire flower bed with its flowers, 
or the use of white pwwinM Carda- 
mhwi against gfraiiwi walls where 
we might think of nothing but Hel- 
lebores. They are easy and hand- 


iU*jHT3y£t 


era’ merchant surfacing spring. 

each pot of seedlings and each of. What is life like, I wondered, If 
his raised beds. you are slave to thousands of pots, 

I failed his test for experts, of custodian of a unique yellow 


WEEKEND FT XVII 


p aeony and a grower of rarities 
such as Panya or pink double Ane- 
mo neTta? 

You need the neat temperament 
and tim patten™, both of which I 
have noticed in gardening doctors 
or dentists, perhaps because tbey 
have to be methodical and meticu- 
lous. It eiso helps to have a friendly 
climate, a deep soil and an expert 
neighbour. 

EUio tt, Trtwln his 60s, remarks on 
his debt to the great plant collector, 
Paul Furze, who lived nearby and 
brought Win seed from bulbs found 
on his many expeditions to Turkey 
and the M'ddlp East. 

Eventually, disease attacked even 
the doctor’s &it£Dsaries: “Botrytis hit 
the frits,” as he puts it He then 
concentrated on his other strong 
suit, alpines and small hardy 
plants. 

Sometimes, I think my garden 
looks lika a mortuary, at other 
timgg a hospital, not just because 
the beds are filled with vegetables- 




they would look like an exemplary 
waiting-room in which everything 

looked pleased and health; and 
growing up in gratitude. 



here Rockefeller 
found culture 

Paula Deitz visits a garden where new American money met, and 
fell for, old European traditions of landscaping and architecture 


L ast week, as the New York 
Waterway ferry boat eased 
away from the Manhattan 
dock into the Hudson River, 
the captain called out that 
there was a fair wind and slack water. 
This meant a smooth cruise up the river 
between tides to Tariytown, New York, an 
auspicious beginning to an important 
boose and garden event: Kyknit, the coun- 
try vffla "that was home to three genera- 
tions of the Rockefeller family was wel- 
coming visitors for the first time. Perhaps 
not gfaffB Mount Vernon, R*nrg » Washing- 
ton's mansion in Virginia, was opened to 
file public has there been such a stir and 
py rttement among those interested in his? 
toric houses and gardens. 

Far from being the os tentatio us display 
of a style called “robber baron architec- 
ture", Kykuit (the Dutch for “lookout”) 
wqs essentially a home for a family that 
remained as modest as it was wealthy. 

The house sits 500ft above the Hudson at 
the highest point in Westchester Comity. 
It Is 30 mbps north Of MmhaHan in flw 
middle of the RWkafcflef estate at ppcan- ' 
tied Hills. The hoiiwi and gardens’ were 
constructed between 1906 and 1913 to take 
advantage of the spectacular »nd uninter- 
rupted views of the Hudson Valley and the 
river that runs through it 
Although John D Rockefeller bought the 
land and contracted to buQd the house, it 
was the constant advice of his son. Junior, 
that turned the project from a simple 
country cottage into the im portant resi- 
dence Junior believed his father deserved. 

The Rockefeller name is associated with 
good architecture and conservation causes 
that have resulted in saving land both in 
the US, particularly the cliffs along the 
Hudson, and in the Caribbean. The family 
has preserved the Abby Aldrich Rocke- 
feller Garden in Maine, designed for 
Junior’s wife in the 1920s by Edith Whar- 
ton’s niece, Beatrix Jones Farrand, the 
garden designer. 

Kykuit Is Interesting as a study of how 
Rockefeller father and son, two mm accus- 


tomed to the simple life of the mid-west, 
began to develop an interest in the culti- 
vated European tradition that Hnkg the 
house with its special landscape. 

The architect Is recorded as Delano & 
Aldrich, but tha vision behind tho Pa Tin, 
rifim d«ifn of the house t»nd frie terruml 
gardens was provided by W illiam Welles 
Bosworth, an architect who excelled in the 
beaux arts style that combined Italian, 
French and Rngh'i* traditions. 

Bosworth began his professional life in 
the office of park riaaignar Frederick law 
filmcted and iwntimirf W« afaidtaa at the 
Ecole des Beaux-Arts in Paris before 
beginning work at Kyknit where he laid 
out the gardens. The villa appears to have 
been to conform with his garden 

desig n rather than the other way around. 

Wharton’s hook, Bohan Villas and Their 
Gardens, with romantic illustrations by 
Mayfield Parrish, was published in 1901.. 
For the next few years their ideas were in 
the air. The figure surmounting the larg- 
est fountain in Kykmfs forecourt is of the 
god Oceanus, after the one fry Giambol- 
‘ ogtiaTin the Bobofi gardens in Florence. 
This fountain is the source for the water 
features throughout the garden, all of 
which are in perfect winking condition. 

As a compendium of prim desig n his- 
tory nothing has been left out There is a 
grotto in the style of Hubert Robert's at 
Versaill es. T he landscape is in the tradi- 
tion of W illiam Kent Q lana, the home 

which painter Frederic Church built fur- 
ther up the Hudson to offer the best river 
mew, is also an inspiration. 

Where title garden is formal, as in the 
walk of clipped limes leading to a Temple 
of Venus, it has an the crispness of the 
best ordered green garden. This altee 
forms one ride of an enclosed garden. At a 
right angle is a Moorish that terminates at 
the Tea House, a small pavilion of rusti- 
cated stone decorated in an ancient 
Roman style. Bordering the rin on either 
side are rows of topiary cones inspired by 
those in the park at Sceanx. 

Below this terrace an one side is the 


brook garden through which flows a ser- 
pentine stream with columbine, iris and 
pansies along the rocky banks. 

On the river side, the series of levels 
begins with an orange tree terrace with an 
ironwork balustrade of grapevines. This 
was crafted by Tiffany to Bosworth’s 
designs, as were tha laniwna «md other 
decorative metalwork in the gawhma 

The swimming pool terrace below is one 
large oval pool with a pebble floor and 
spillways on either side spanned by stone 
bridges covered with clematis vines. North 
of the house is a wisteria pergola and a 
semtdrcular rose gardan punctuated by 
columnar junipers. 

Where the terraces end the ruffing coun- 
tryside begins. Each generation of Rocke- 
fellers left its mark. The most recent addi- 
tion to the gardens is the collection of 
modem sculptures placed within the out- 
door rooms by Nelson Rockefeller, the for - 
nmr vice president of the US. 

Because many id these works are from 
the 1950s, fids collection already has a 
period .look, but few sights are more 
arresting than Aristide Maillol’s crouching 
sculpture “Night" by the hedge that 
divides the garden ft um the long expanses 
of green. 

On Nelson Rockefeller’s death in 1979, 
the house and garden were left to the 
National Trust for Historic Preservation. 
The Rockefeller Brothers Fund maintains 
Kykuit, which has also became a confer- 
ence centr a, thanks to a splendid renova- 
tion of its Coach Bam by the architect 
Herbert S. Newman. 

■ Public visits to Kykuit are being man- 
aged by Historic Hudson Valley. For reser- 
vations and advice on how to travel to 
Kykuit call 914-631 949L Admission : $18 
(£12.30); children and old people $16; by 
boat, $50. Closed Tuesdays. 

hi her article on magnolias in the Week- 
end FT of April 23, Patricia Mortson 
referred to Packard’s Smetterting- The cor- 
rect name of the variety is Picard’s 
Schmetteriing. 







Water features at Kyfcuft as a co ntpandhan of garde n daaign h is tory nothing has been left out 




l - "W” n an out-of-season camp- 
I mg ground two men sat 
^ I under the roof of a dosed 
" JL. dance floor In a down- 
pour. A table was spread and 
, . ; products of the region were 
' n - arrayed; meats, cheeses, wine 
- le piazkr. a big part of the 
French fishing experience, hi 
front of us, through dripping 
... ■wafont trees, sped the river, a 
coffee-coloured flood, carrying 
autumn’s first leaves. The Dor- 
. dogne river was, as .it fre- 
’ ‘ quently is, a torrent 

It is a happy moment when 
the .rain stops. Through the 
, - lightening cloud came the 

>- gtitrrmgrfag - mm.' And as the air 

warmed, they appeared, white, 
black, and yellow, from the 
luxuriantly-vegetated valley, 
T insects for fish to feed on. 

• ' In unpropitious conditions 
•• ■ we resorted to what the French 
.- can “combing the water", and 
■ v the En gtiah “fishing down the 
pool". 

The usual French method on 
; the Dordogne is to spot rising 
' fish and them cast to them. Oar 
• intended quarry was the gray- 
. ting, a little-understood mem- 
‘ bar of the trout/sahnon family , 
. r *. which has a high and colourful 
dorsal fin. A grayting must rise 
a few times in the game place 
to interest Beber, my fishing 
' ' guide. He is a Deep Nature 
•• man. • 

.,<* From the larvae on the bot- 
tom of the stones he can tell 
the health of the water. The 
J shadows falling, through the 
'‘OI trees give 1dm pleasure. The 
if™ strange strands of white mist 
carrying cool air down, the 
opposite bank stir echoes of his 
childhood, spent on this sdf- 
same river. Fishing for him is 
'V' not an extraction process it is 
a rustic ritual in which the 
motions must be thrilled to 
the right pitch if the catch is to 

- be pleasurable. 

- The grayling feeds actively 
'* *f in spring when fly-life emerges, 

and again in September. Octo- 
' ber and November to replenish 
‘ - the resaves for winter. Its sea- 


Fisbing/Michael Wigan 

When the French 
grayling rise 


Altar the cttioaiste tav» gone hoow: The Dordogn* offers glorious sesnwy and Wring 


iRMUbny 


son coincides with the times 
on the Dordogne vrtnen fishing 
is possible because the canoe- 
ists have gone home and 
most attractive, because the 
vacated landscape is itself 
a gain. As trOttt fishing ESlds, 
grayling begins. 

Gracing country is appeal- 
ing. The Dordogne near Argenr 
tat runs through oak-wood 
valleys. In Britain we fight to 
conserve our few surviving 
native woodlands: in France 
there are hills of muntarrupted 


natural woodland. 

In the valley-bottom, walnut 
orchards line the bank, mixed 
with small fields of maize, and 
sunflowers. Velvety-brown 
Limousin cattle crop rich 
grass. Tight building control 
has kept intact a homogenous 
native architecture that is cen- 
turies old. Stone-slab roofs 
with steep pitches crown 
fairy-tale houses with peep- 
hole windows. Big buildings 
never look big, their grey tow- 
ers and high walls protruding 


like outcrops of rock. 

The rivers carry gudgeon, 
pike, perch and rudd. Eds and 
crayfish are present too. 

This great btomass of fish in 
the greetosteUack river is vig- 
orously depleted by many com- 
ers. A French fishing licence 
eaditles you to an immeasur- 
able mileage of fishing water 
for a pittance. In the Correze 
alone there is Sjnokm of public 
angling water. 

Poaching practices are 
almost as numerals and com- 


plex as the regulations specify- 
ing methods and keep-sizes for 
different species in different 
regions. They include the 
deployment of poisonous wash- 
ing-up liquid (bottles of it litter 
the bushes) used to kill little 
fish in the feeder-streams. 
Even the flsh-flUed field-drains 
are a tt acked after ratn. As fast 
as these practitioners remove 
the fish, fanned replacements 
are tipped in. In the Correze 
alone 10 tonnes of large trout 
are introduced each year, and 
600,000 small pike. Grayling are 
stm mostly wild. 

To pur ists like Beber it is all 
haywire. Money spent breeding 
fish for anglers could be saved 
if the Dordogne’s multifarious 
fishery was properly con- 
trolled. For example, if gray- 
ling were protected during 
their breeding season. But 
French ffahariag are left to run 
themselves: the departments 
(regions) in central France 
maintain a force of only 
around seven fishery inspec- 
tors each. This under-muscled 
team spends much of its tune 
as far from river-banks as pos- 
sible, for prampie in the safety 
of the hatchery. - 

The Correze is glorious coun- 
try, from the plateau of which 
a huge landscape imfrilds. The 
casties and changeicgB scenery 
give it a strangely medieval 
feeling. As 1 freed a golden 
dace twiddling on my tine, an 
osprey flapped in fixed position 
over the water up-river and a 
kingfisher darted along under 
the opposite bank. 

In rural France, tolling 
church bells emphasise the 
quietness of the land. Under 
tiie trees across the way a very 
old man was slowly assembling 
his tackle. I felt part of deeply- 
ingrained customs on time- 
worn soft. 

■ Information: self-catering 
accommodation lo suit all pock- 
ets can be arranged through: 
French Affair, 517 Humbolt Sd, 
London W6 8QK Tel: 071-385 
8438. 


FT Round the World Ski Expedition 

Snow poses a threat 

T he Himalayas, poten- those from the rest of India, to High above the army chi 
tiaOy the greate s t ski escape from the heat and dust point, two huge snowplou 
area in the world, 0 $ the Mg cities such as Bom- were trundling along the 1 
almost wrecked our bay and Madras into the cool towards Rohtang; a third ' 


T he Himalayas, poten- 
tially the greatest ski 
area in the world, 
almost wrecked our 
plans to dd every day of 1994. 

Since arriving in India, we 
have been farced to scramble 
over rocks and avalanche 
debris in search of skiable ter- 
rain, to follow snowploughs 
along roads and ski on snow 
bridges across streams swollen 
into torrents by melting 
stow. 

Merely getting this far was 
stressful enough: our connect- 
ing flight from Delhi to Bhun- 
tar, in the foothills, was 
alm ost four h oars late. Then 
we di sc overed that the Roh- 
tang Pass - -where we were 
scheduled to ski - was hope- 
lessly blocked for the last 
25kms after heavy imseaWHial 
snow. 

Driving into the mountains, 
stfll two hours from any snow, 
we beard an ominous bump- 
btunp-bunp from a hack 
wheel. A flat tyre at almost 
3pm — time was running out. 
My companion, Lucy Dicker, 
and I. both felt a sinking fed- 
tog: after skiing fra" 124 con- 
secutive days would this be 
the day we failed? • 

At least our driver was car- 
rying a spare, albeit quite 
bald. For the nanamdu. of the 
journey into the Knllu Valley 
~ the Valley of the Gods - he 
kept glancing anxiously at the 
replacement to make sure it 
was still with us. 

At last we entered ManaH - 
“the Queen of the Hfll Sta- 
tions" - consisting almost 
entirely of hotels, the only 
function of which is to cater 
for hordes of trekkers and 
tourists: the trekkers to trek, 
and the tourists, especially 


those from the rest of India, to 
escape from the heat and foist 
of the big cities such as Bom- 
bay and Madras into the cool 
mountain air, perhaps to frolic 
in the melting patches of 
snow. 

Entire families had rented 
red weffington boots, for coats 
and gloves from wharlrtt along 
the route, and sometimes skis 
and boots as well, to make a 
turn or two or simply pose for 
photographs. Everyone from 
grandmother down took 
delight to simply scramUfaig 

Arnie Wilson on 
the hazards of 
skiing in 
the Himalayas 

up the banks of snow and 
rI I iiin iwg dovro again. 

But Lucy and I needed some- 
thing a little more ambitious. 
We had to take to the roads. 

In spite of many hairpin 
bends and prec i pitous drops, 
Indian drivers treat the nar- 
row mountain pass to the Roh- 
tang skiing area Ills a main 
street to Delhi, sounding their 
horns at every opportunity. 

Still short of our intended 
destination, we were forced to 
stop - we needed an army per- 
mit to travel further. But in 
the absence of the slightly snl- 
ten Major Randhawa, all we 
could do was to find the lon- 
gest section of linked snow 
patches, seftconsdously map 
on our skis, and set off. We 
managed just under half a 
mile - not much, but at least 
we had skied in India the day 
after skiing in France. 


High above the a r my check- 
point, two huge snowploughs 
were trundling along the pass 
towards Rohtang; a third was 
being repaired by mechanic*. 
For the next few days we went 
in search of new terrain, driv- 
ing as far as we could behind 
the snowploughs as they 
inched towards Rohtang. 

In our search we ran the 
gauntlet of snowslldes and 
rockfaHs and in nnp particu- 
larly hair-rasing section of the 
route - a scales of a dozen 
zig-zagging hairpin bends - 
huge blocks of snow and rock 
would suddenly appear. 

The skiing was dangerous 
and inelegant: Lucy dislodged 
a rode and slithered 10 yards 
down a gulley before I man- 
aged to disentangle her. The 
rock then fell on me. 

The next day I fell through a 
snow bridge but my skis 
stopped me felling into the 
stream below. I was struggling 
to climb back to the road when 
an ally hand reached out to 
haul me over the parapet ft 
was one of the snowplough 
repair men. And on our last 
day to India, we skied in mon- 
soon conditions. 

In spite of the extraordinary 
kindness shown by our hosts, 
who resuscitated ns tike ring- 
side assistants between rounds 
to a boxing match, we sbaU 
never f org et the perils of the 
Rohtang Pass. 

After the Vafley of the Gods, 
night skiing to Tokyo’s new 
Ski Dome was going to be an 
absolute doddle. 

II Trtme/ arrangements were 
made by the Indian Tourist 
Office in London and Span 
Tours V Travel, 36 Jamath. 
Delhi 


1 


a. a » & m a? 


XVHl WEEKEND FT 



„ , SUFFOLK - W 1 SSETT 

HUcsworth 2Vi miles r\+ s r» Bunpiv 7 miles 

216.5 acres 

A compact residential and commercial farm 
6 bedroom period innhoiae. Grain storage. General purpose buildings. 

For sale as a whole or in 3 lots 


Conrad James Douglas 

Norwich (0603) 763939 



ESSEX/CAMBRIDGESHIRE BORDER 

Saffr on Walden 4 miles -Mill mile ■ BR. London (Liverpool Street; S3 mins 

An exceptional village house set in landscaped gardens 
4 reception rooms. 5 bedrooms, 3 bathrooms, shower room. 
Double garage. Hard tennis court. 

About 1.88 acres - offers around j£3 75,000 
Additional 5 acres and Victorian cottage also available 

Cambridge (0223) 841842 

CAMBRIDGE NORWICH - IPSWICH I. O ft Q Q M PERTH ' 


BRODIES 


!. li .. 1 ::- t'.Mitf Aiv.’U.y Dcpiirlrtv.-iii 


Arbroath 3 Miles 


ANGUS 


Dundee 21 M»1 «n» 


A FINE RESIDENTIAL ESTATE WITH A CLASSIC 
GEORGIAN HOUSE SITUATED IN PRIME FARMING 
COUNTRY 2 MILES FROM THE COAST 



IRELAND, Balyna Estate 



For sale privately. Historic Country Estate with 
333 acres. Mansion in pristine condition. S 
receptions. 10 ensnlte. 5 cottages and private 
church. Dublin 45 mins. Airport 60 mins. 


Telephone: 010 353 405 41651 


Fax: 010 353 405 51259 


SUFFOLK 


GLOUCESTERSHIRE 

GbuccrterJ reOes- L c cMadr 10 miles 
Detached home built in tradition! 
CotawwM style. 

2 recept i on rooms, kitchen/ 
txcakfaH room, scullery, cloakroom, 
4 bedrooms, dressing room, bathroom, 
separate wc. Detached single garage, 
garden sheds. Garden and small 
paddo ck lo the tear. 
bdrimlUAan 
Gsfcfc Price £200000 
OXFORD OFFICE: 

(0885) 793900 


Ipswich 3 miles 
A FINE ARABLE 
RESIDENTIAL FARM 
Superior Modem Residence 
Pair of semi detached cottages. 
Extensive Buddings 
(pp for Conversion) 
Grade 2/3 Land 
(Pan with pp for Golf Course use) 

456 ACRES 




R.U. KNIGHT ,N SONS 
TFT: (0449) 612384 
FAX: (0449) 677185 


Bresrinslon of Holder tauesonoii Lodges 
■ FuO Management Services. 

■ Eok Routes waft Caput Growth. 

■ EacdJenC Returns. 

Tirahnli t I oir ohnlt 

nrotuiu or ixmoMy 

Packages E28.500 to EZ mWon 


OG2G 77G938 

VERNON KNIGHT ASSOCIATES 


COUNTRY QUEST Home Human In 
Central Southern England Cottages, 
homes, Oats, ratkament homes. Tat: 0072 
870 US Fare 0672 871 405 (avaflabte 
evenings AWadkands) 


CUMBRIA - COUNTRY HOUSE 8 Beds - C.G.T. OPPORTUNITY looe Cornwall. 3 
£150400. Opdon - 5 acres (and. km 8 luxury bunch Irom imbonesea E3Z0A00. 
houses. Barn tor 3 houses. Milch oils FiAy tumtshed. MARSHALLS 0303 284888 

(WaahdayS) Tek 0900 627 292 


TOT -.B T .U T 


ENGLISH COURTYARD IN THE 
VALE OF THE WHITEHORSE 


An Oxfordshire village, a river and a view to the Dawns. Shops and 
pubs around the comer. Privacy, quiet, comfort and space for living. 

Pension cs Court, Stanford in the Vale. 

2 and 3 bedroom cottages from £172400 to £200,000. 

Show house open every day of the week front 10.00am to 4.00pm. 


COUNTRY PROPERTY 


FINANCIAL TIMES WEEKEND MAY 14/MAY 15 1** 


” FARMS 



Alton 4 oiks, Basingstoke 8 mOes 

A FINE PERIOD COUNTRY HOUSE WELL 
SITUATED WITHIN ITS OWN LAND 

Had, 2 Reception Roams, Study. Kitchen, 6 Bedrooms, 4 Bathrooms. 
Ombufldlngstnctndaig ^raging and a listed Bam. 

2 Bcdroomcd Cottage. Garden and Grounds with Swimming PooL 
Paddock land. 

ABOUT 15.75 ACRES 

John Agents: Lane Fox, Tel: 0962 869999 


NORFOLK 

Reeptam I mde, Fakenbam 14 roiw, Norwich 14 miles 



A FINE GRADE H* HALL DATING FROM THE 
LATE 16TH CENTURY IN A SECLUDED POSITION 
WITH ATTRACTIVE GARDENS AND PARKLAND. 


Reception Hall, Drawing Room, Dining Roam, Garden Room, 
Sitting Room, Study. Kitchen with Usual Domestic Offices, 

7 Bedrooms, 2 Bathrooms and Attic Roams. 


Grade 0 Listed 17th Century Barn. Range of mainly 
Traditional Buddings. 


Moated Gardens, Parkland, Woodland and Arable Land. 

ABOUT 75 ACRES. 

(As a whole or in 2 Lots) 


127 Mount Street, London W1Y 5HA Tel: 071 493 0676 


STRUTT & jin 

PARKER®.? 





Hampshire SuriUdsafiiidai, WaidhoBw IS ste (WMalao 
54 ciinmctX Laxfcxi 73 mik»- A myo ti ty protafarf attractive listed 
period <»oimyboamRnBtf^h»iL4me q iw m«p on^lc!ria ntow ^ fag 
Mng hvfrtt ft* hw%^« 1 M l < .liiMririgmnni.41uahg 
Tnrl^-ip n dynfaa. ScATcbtecic wsh KffXSP 
fi ..y][ . Q a iA.u MmB^,3 niWnrin. Ab!*U»gw 

Smfiiburr OfllceTefc (0722) 32TMI. Fir (OTZZ) 4[ 1 259. HrfRXlM*. 


13 HILL STREET BERKELEY SQUARE LONDON WlX SDL. 
Tel: J074) 829 7282. Fwa (0743 409 2359 



CLUTTONS 



CHICHESTER, WEST SUSSEX 

Qudtener 2 nul*. Arundel 12 trails. riKwiwth 17 mikv 



An im posing laic Victorian Convent with ancillary bailJiop and 
walled gudea wirii potential For a varictv uf alternative mc$. 
Ghis ir.:enul:l<«'r.cr-jiit jSair lt>. AY nj. ft. 

VFaQed garden .irJ p-aid. 

About 6.7? Acres 
Freehold for Sale 


ARUNDEL OFFICE: M90J) S82Z 1 3 
LONDON OFFICE: 071-408 l0l0 


CHARLOTTE PARK - OXSHOTT * SURREY 


The Heart Of The Surrey Tradition 



CHESTERTON'S 


Fountain House, 
Park Lane, Mayfair 

A selection of three flats with one 
reception room, rwo bedrooms, 
two bathrooms, on 3rd, 4th and 
6th floors of this purpose built 
and prestigious block overlooking 
Park Street with 24hr porterage. 

Long Leases. 

£450.000 and £475,000 


MndUrOflke- 

Tefc 971-629 4513 Fax: 071-493 0U1 


LOOK** LOVELL 


The dassk tradition a( the Enghsh country home is and the MIS. this boon ha the eery highest quality 
faithfully recaptured in this outstanding and specifications with the fallowing accommodation: 
substantial property, the last in an exclusive 4 reception rooms. 5 bedrooms, 4 bathrooms, 
development of six. triple garaging. 

Located within easy reach of London's airports Price £79S. 000 Freehold. 


ROY JAMES 
FANCY 

tmmion 


ated within easy reach of London’s airports Price £795 , 000 Freehold. 

M/ Lovdl Homes 

Saks office and sbowfaome open 7 days per week 10.30am to 530pm. Telephone: 0372 8423 22 


Otiboo (QffiJ 843311 


fif/here would you like your 
second home? 




Canonbury Park South 
Canonbury, NI 

A fine three storey semi detached 
house built c 1842. Traffic free col- 
ds -sac in bean of Canonbury 
Cocsetvauoo Area. Superb 100* SE 
garden down to New River Walk. 
3 rcceps, 4/5 beds. 2 baths, fined 
kitchen OSP. Gas CH. 

Super &mOy boose. 
£4954W0 FREEHOLD 
Td 071 226 1313 
Fax 071 359 9481 



Lakeside. 


£ Idyilk: Cotswoid setting in art 1 i.aOO oar 
water park 7 ) Alfwetnhcr tennis axjns 
? Choke of two golf courses'- Sailing and 
Windsurfing Private coarse/tmul fishing 
Z Horse riding 

Price £73,9001X0285 862288 


at located on a private Id hate course In a 
200 octcViaonm estate* FREE poffottym 
fixM& 3 PLUS Country Gut) membership 
Jbr a firmtfy of four# Indoor pool and fitness 
studio 3 Allweathcr tennis 
courts Zi2S-acre trout lake 

Pace £849001X0604 671471 




CHELSEA HOSES EAflCff t CO Ufa 
represent toe buyer to save time and 
manor. WTt 937 2ZHt. Fax 071 9372262. 


TTTTTTT 


Ac!!^ 


or Marinaside? 


RENTALS 


•^aigr- 


T! OvcrtooMiigBrilamS premier inland marina, 
on the river Great Ouse C Private moorings 
available i* Access to over 200 miles of 
tranquil vjutaways Z Indoor pool/ 
sauna/gymnnsiiBn ” Private bar 
and brasserie 

Pdce El 20fi00Tt0604 671471 


1 HI ACK HORSt. UitVIF.S 
'•iS' i Gascor4nc-Pees 


All new Watermark properties come with 3 bedrooms and 
2 bathrooms, 999 year lease, 24-hour security, year round 
maintenance and private parking. 

8096 mortgages are available, subjecz to status. 



A Subsuaky of Lloyds Bank HjC 
Corporate Tenants available now 
for your property in 

SW1, SW3, SW7 

Rentals £200- £2^00 pw+ 

Td 071 730 8682 Fax 071 730 3 110 


I.L iTI\CS. SAMS, 
ItOr’LUT* MAN \t i NT 


A SECOND HOME SECOND TO NONE 


Lexmark 


The Engfish Courtyard Association 
8 Holland Street, London W8 4LT 
FREEFONE 0800 220858 


UPPER SHOCKERWICK • BflBl 4 IMOL 


BERRYHILL, NR DUNS, SOUTH EAST SCOTLAND 


AUCTIONS 


with atorfous sautharty aapect aouM By 
Brook valley, anting room, dMng room, 
breakfast ktehan. uOfty. doakaMmmr, 3 
botfrooma. bettraom. ofl certrri heating, 
garage, pretty garden. Qukfa £175,000. 



Former game keepers lodge with three 
acres end stabks aar silling room, dining 
room, kitchen. 4 be dr oo nt s. ba t hro om. 


SHORT TKRM 
RENTALS 

VI. VI'S TO SUIT. SHORT n'V.W 

f:\ec m\KsiiR,vi \i i 

M1.V7DAVS 

t r.-vriuL i.onlion 
( iiMPu n iHii puia-'.D 
IK I. II' I 5S4 S'JN FAX UTl SI> R433 


OffenuvIBJWa 



Apply: General Accident Prcpeny 
Services, 54 Ride BUI. Berwick upon 
Tarred. 


KBtSWCrTOt*ICEHT«AJ. LONDON Lags* 
■election at quality properties. £180- 
Eisoopw. Prom 3 wks to 3 yrs. Cham 
Asaodatea 071 B382BQS. tO-Tpm 


COUNTRY 


0289 302828 


KBBMSUM Iwm Cttat 4 bedroom tanfty 
(at ki Vieiorkn block £580 pw T. HO30NS 
071 371 B721 Fax 071 371 6751 


SUBHEY, Hascombe. Nr. fiedelmlng A 
delightful detached period cottage ki an 
■Hracthm rural kjeaSon. The prepwty hsa 
recanOy boon reftethhed in an extremely 
high «andord. Mt/Braakbt mi, irtHty an. 
ckMk >Bhg im, Mng im, 4 bam. 3 bame, 
gnage, pin. To Hr eSnr part tentshed nr 
urrtumtahod on an Assured Shonhoid 
Tenancy lor an initial period ot 1 year. 
Confflcc Anne Tlmmia at Shufl & Parker 
Teh 0636 521707. Rat 14CC663 


DORSET. To Let on long lean. Debated 
period vtlage «dtage in couetal vfltoge. 
Guide £100 par week. Symonda & 


BLACKINGSTONE 

WOODLANDS 

Nr. Moretoohampstead, Devon 

340 acres. Choice of 3 Commercial woods with softwood 
timber ready for thinning Vo produce immediate tax free income. 
Good access. Price guide from £75.000 to £125,000. 
Particulars and a list of UK woods for sale from: 

John Clegg & Co. 

Church St, dtesham. Bricks. HP5 UF 
Tel: 0494 784711 


COUNTRY 

RENTALS 


TO LET 

WEST CORNWALL 

Sutaomlil Grade H Listed Counny Hnesc 
iuc- cc, fUl, raage of offices red rnblc 
block. 14 acra parfctand. 2 cottages 
waibbic by *p- negotiation. 

May toil com m ercial me long tct. 

For brief details Wriie in Box B2400, 
Ftnaacul Times, One Scibwark Bridge 
LwtoaSEI 9HL 



CLUTTONS 



On the ImtKaitvmtd Merit i4Lip.-,1.Nhvii 

NORTHAMPTONSHIRE 



^ £ 




THE RADSTONE ESTATE 

A cum|Mct Coromcrcwl Fanning Property 
T»uMthiijnrul Itmovv lurinlanM- juJ 5 v-iatwn. 

Thnv «b id iw ilna turn hiAknn with . war *NAVx|. to. *it 
ciH-crctl '{Mt c. UvS cw J.mv un««. 1 ,MvV t«<ni>r flum mvjgc. 
Milk ipwaa I. ISi limw - 4 0'".. JV jt-atLiMr K ttosuturii 

1.20S ACRES 

Fur SJc bv Private Tnutv a* a Whole or in op fu (6 Lut» 


OXR3RP OFFICES KVfi5) 24661 1 
LONDON OFFICE.- 071-40H 1010 


sons 


CHARTERED SURVEYORS AgriOdtanl 


EAST KENT 

NICKLE and STONE STILE FARMS 
in all about 657 ACRES 
Orchards - Buildings - 11 Cottages, 
Land with consent for 
Golf Course and Dry Ski Slope. 
FOR SALE IN LOTS 

by 

AUCTION on 29th June 1994 
unless previously sold by Private Treaty 
Tel: (0227) 710200 


LONDON PROPERTY 


HEREFORD SQUARE, SW7 


A large bouse in one of Kensington's presrighms squares extending over 
4,000 sq ft; the house is quiet and bright and would benefit from sane 
redecorating and refurbishment to provide on outstanding family home. 


Dining Room + Drawing Room + 2 further Reception Rooms ♦ Stwfy 
+ Kitchcn/Btcakfost Room + 5 BcdraooK + 4 Bwhrooms + 2 Guctt 
Cloakrooms + Staff Quarters coroisiwo: Reception + Bedroom 
+ Bathroom + 60ft Private Gardens^ Patio + Commnn&I Gardens 


72 Year Lease £lJZ95m9Bn> 
Freehold available 


Hamiltons 

Tel: 071 9724330 Fax: 071 792 1955 


INTERNATIONAL PROPERTY 


FRANCE 

SUPERB 40 ACRE NORMANDY ESTATE 

LS hours from Paris. 

45 Kims of bonks on highest rated chalk river. 
Su bst a n tial 7 bedroom fishing lodge, working water mill, 
gardeners cottage, formal gardens, etc. £400,000. 

STEBBINS. TEL: 071-796 4646 FAX: 071-796 3540. 


PMUAKME GARDENS: u/F houM yrith 
W/Fganlon and private parking (garage 
also MV). 3/4 bads, Z baths. 2 recap. 
WBHtast room. dknnfWC. EE85 pw uno. W 
ABBS. 071 -S81 -7BS4. (SaUSun vtswtng - 
071^84-4725) 


WCl SELECTION at nendy modsrnisad 
■bda Us in Plb btodt dore to Russel Sq. 
WRSOK5I500 MacmBm 071-288-1010 



BLOOMSBURY WCl Nndy modsmbed 
feudi tare Bat In Rfe fabric 1 bed. Flic, Kit, 
Bah. t77JW0 MsatHans 071-288-1010 


KENStWaTON Eads Court Square Bret floor 
(Bor Rat In Period conversion, double 
height recap 1/2 bedroom* £184.000 
T. HOSKINS 071 371 021 F»071 371 8751 


IACOLLE SUB LOOT 
CXYTE D'AZUR 

An exceptionally pretty pfovenca] *bosdde* 
with many amactive stoac Butetea. 300 
yaetfa fimn the villigo ud wttii viewsro OK 
■re and Safaf-Panl village, 40 fi pool, 

5 beds. 4 berth*. aady/Ubniy antique 
Hic-pfacc large cdlai*. 1/3 acre rasco* 
Ret 3358 


LE MONTAIGNE 
Center of Monte-Carlo, 
splendid 3 room 
apartment for sale, . 

1 bathroom, 

1 shower, fully 
equipped kitchen. 
Cellar & Parking 


AAGEDI 


Td 33-92 165959 Fax 33-93 501 90 , 


JOHN TAYLOR 
| Briabfahcd U65 

The be^i yastipr pnpaty ^Enaaa dw 
CBk <fA» OHal HADES or Tta SANDERS 
Tct (J31 93-32-83-40 Rnc |M) 93- 31*3-44 


AZIR INTERN VnoWI 




LE MARCHE: 

Properties for Sale 
Canip odanzo b a restored hamlet of 
fifteen bouses standing within its own 
forty aar estate with pods and taunt 
courts. It is in the beautiful Lc Marche 
region near Ssnuno in the tbothfib of 
the Sibifiix ww^mi.-iyOT, 

For Amber taatonwriton and 
brochure tel eph on e 031 5568218. 



I cl : OIO ,33^12 OS i*l ‘>1 
i ;t\: njo.TT *>2 *>S.o I . J J 


Houston, Texas 


COTE D'AZUR, ST JEANMET, MR 
VENCE. VBta, 4 dble bads, bnga salon. 
dWng rm. swkrartng pool, sail contained 
flat. Suporb panoramic view Cap Fbret to 
Cap D-Arntbes. 25 irrirw. Mica Airport 
fb E7m. Tsk UK owner 081 741 0702 


Prestigious 4000 acre nancii 
Excadard Hwy Exposure 
Dvsr 100 Coastal Pashm 
12 Homes & Si mfflofl In EqutonMrt 
Horao & Canto FacflOea 


AJL. SdBey Rratty 
713-870-8488. 840-8854 tax 


TROPICAL BOUVIAl GOO ha- farm Cartage, 
wrrd. Matty vkgh forest. Cixrantty about 
lOtta commardal-, holly- days-, or just 
WSremont use. 20.000.41 Ptareo coreari: 
ReWiaid wooer. cAiarctono Bravo 18, 
San Ignado da VofcncD SC, BOUV 1 A. 


CYPRUS - OHtaat. ManiMda dntfcpan 
asL 1938. FroohoM vSak/aptson Mhl 
coast. Finance an. Inspaetton flight* 
LOR DOS CONTRACTA. Box 1176. 
Limassol. Cypres. TsL (357-4) 377977. 
Fane 3S3143 


T USCANY In te h Ua aboue Lucca. UMngty 
rettmd tamihouM wth apoeucutar views. 
Pretty gontona a nm acres. Convontont 
tor Pisa & Coast. £195.000 Veronica 
Cotpom 071 2B7 2423 


COTE CTAZUR, ALPES MARmME9 8 
SPA (EU) salts the beat ApartiMjns 
and VHlaa tot Cannes, Uouta Catn. 
SL Ttopac. Vsnca, Antibea. Hinton ■* 
ottrar doafrabla astetoahre fa*aitod4. 
Tat 071-483 0808 Fac 071-483 04S8 ■ 


eUERMSEY- SHIELDS t COUPAMY LTD 
4 South Esplanade, Sl Rotor Port Thfl 
UanTE largaa MependMit Estate Agent 
Tto: 0481 714445. Fae 0481 713811. 


FREMCH PROPERTY EXHCgnON to IdyRC 
near Ktm Gattons. Sunday 
2nd Tickets and Mommton mg 071 
287 8000 


CANNES CENTRE AFT. 82 St} at 22 SOS 
3W POOL pm, guiQif wwflfrpto fr TW 
iwo bath, sop wc. haleaay. fmdfMV 
unrssHcled tem. CJfan. kanafl. Ot»«P* 
PfR 1.4180 Tab M3B 807283 


COTE D'AZUR - VEMCE BpadoM < ^ 
vna. nduaiue amtot atuei-ubnteci,^ 

n*tt Mceekport. FFc I.TW-Tatlfltovte. 


COTE D'AZUR Luxurious totnfly BOCtodOd 
Ptownccd voa. Ootwean GreoM’Connos. 

Stopo 10. Iga gdn. pori. Show Son. bo«h 

Ttan. Aval. Ai^ysT C1S50pw07A47249t 


COSTA DEL SOL PROPERTIES' . MtotM* 
Otfcoa. For MomaiSon 4 Ptb» •* 
0810033761 anytma.F«3iW9 ■" 


FWQJCH PROPERTY NEWS. Free Monthly 
Wd. now amt aid j»p.. legal column etc. 
Ask tor your froo copy now 081-942 0301 . 


COTE D'AZUR prim sal s M P nS 
bods, 3 baths, pool, tUlWn Cut* 
C195LOOO anm QHJ 33 93 5733 O 


INTERNATIONAL PROPERTY TRIBUNE. PROSEARCH - Tho ProparWSp«dto« ™* 








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W* «TY 

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' ■-*: 

♦ -I; 

* * T \ - 


WEEKEND FT XIX 



M ichael Heseltine, the 
Trade and Industry 
Secretary and squire 
of Thenford, North- 
amptonshire, has angled against 
-the refusal of Soufli Northampton- 
shire council to let him tha^h 
hUsor Cottage at Thenford with 
Norfolk reed and Install sealed don- 
ble-glaring units. The bnfflHng is 
fisted, and the case win now go to a 
Department of the Environment 
inspector in Bristol. 

Tin council refused because the 
reed was not the typical thatch of 
the region and the windows were 
not appropriate to an old listed 
building. It ruled both elements 
would change the look of the vil- 
lage as well as the cottage, and 
would be a precedent for similar 


Cadogan’ s Place 



Changes elsewhere. The traditional 
local product Is wispy, fang straw. 

The cottage has slates which 
probably replaced the original 
thatch In the last century. After the 
retasal (Weekend FT, March 19120, % 
Heseltine applied again to make 
alterations using slates. The coun- 
cil has allowed that, which enables 
Heseltine to start work. But it 
looks as though he still bankers far 
thatch, on Us terms. 

The appeal will probably tain* 


Heseltine slated for appeal 


three to four months. That is the 
fast-track procedure, when the 
inspector views the property and 
both sides make written submis- 
sions, but there Is no public 
Inquiry. I shall keep you posted. 

■ If you are selling a form with 
cottages, think twice about divid- 
ing it into lots, says Nicholas teem- 
ing of Humberts. Following the last 
Budget, yon might lose a large part 
of any gain to the Inland Revenue. 

The complication arises from the 


disparity between what has hap- 
pened since Much 31 1982 (the 
base date for long-held capital 
Items for CGT purposes), to land 
prices, which have hardly risen, 
and to the prices of homes, which 
have doubled - or more. 

If the form /estate is sold as a 
whole, the indexed loss on the land 
(which probably Increases Us base 
value by 80 per cent) can offset the 
gains on any cottages, with the 
result that thine is Hkdty to be tit- 


tle or no CGT liability. 

IT the holding is divided, each tot 
is assessed separately, so that CGT 
on cottages (one lot) cannot be off- 
set by any indexed loss au the land 
(another lot). Hie Budget allowed 

indexation only for diminishing or 
extinguishing a gain, not for creat- 
ing a loss. 

An amendment tins new 

ruling for 1993/94 and 1994/95 and 
allows £io,ooo of Indexable losses 
for private persons which can be 


carried forward from 1993/94 to 
1994/95, or used in 1994/95 alone. 
Even with this concession, sellers 
of farms will probably And it 
advantageous to sell the property 
as a whole rather than in lots 
where the indexed loss on the land 
exceeds £10,000. Boyers should 
keep in mind that there is normally 
a discount for buying the whole. 

■ Two ritzy houses in London are 
for sale at about £5m. No 47 Rut- 
land Gate, SW7 is set at £4J5m 


freehold through Do Groot Collie 
(071-235 8090). ft is a beautifully 
restored end-of-terrace house with 
views north along the square and, 
from the upper floors, past the 
Broca pton Oratory to Batteroea 
power station, Westminster Cathe- 
dral and Crystal Palace. I admired 
the joinery espedaDy. 

No 1 Cumberland Place, NWl, on 


£5 96m for a 72-year lease from the 
Crown. It is also an endroT-ierrace 
house but this terrace, designed by 
John Nash, has only four houses 
which look from the outside as if 
they form one exceptionally grand 
bouse. From Be Groot Collis or 
ijurnmaiM (071-499 3434), 


Gerald Cadogan 


Tax fanning: an 
I old crop is revived 



ast year was one of the 
cheeriest fin* formers for a 
, long time. They made prof- 
its. How 1994 will be, it ia 
too early to judge as little has hap- 
pened down on the form except 
lambing. In the short-term, pros- 
pects look good. But it Is not dear 
what the effect will be of the Euro- 
pean Union review of its Common 
Agricultural Policy in 1996. UK land 
prices have risen, but, even though 
insurance companies and pension 
funds have been disinvesting for 
several years, the market echoes 
foe groan from the residential mar - 
ket “There is not enough for sale.” 

The turnaround came with Black 
Mtmday in September 1992. As the 
pound fell against the European 
Currency Unit, CAP payments to 
farmers rose by around 20 per cent 
Helped by lower interest rates on 
overdrafts, forming swung into 


riftTfONM PROPER 


The other development was the 
change in 1992 in inheritance tax. 
Under rwrtaiw c frMmutfanwswo agri- 
cultural land qualifies for 100 per 
cent relief where before the rafting 
was 50 per cent. 

These changes govern the mar- 
ket The green Ecu, which is what 
CAP support prices are set in, is 
worth about 92p. In August 1992, 
when land prices were at their low- 
est, it was 90p and its peak since 
Britain left the exchange rate meeft- 
rmUm of the European Monetary 
System was 98p.-The typical price 
for bare land (meaning free of 
houses, cottages and other build- 


ings) in the south of En g in e d 
peaked at around £2)300 an acre in 
the late 1980s, fofi to £1,000, and has 
recovered to around £1,250 with 
considerable variations. (At such a 
price, a yield of 3-7 per cent is quite 
feasible.) 

Near Grimsby in Humberside, 
Walter’s recently sold 450 acres in 
lots, some for 25 per cent above the 
guide price of fijQjOO. Andrew Mac- 
pherson of Clegg Kennedy Drew 
reports bare land going for around 


Gerald Cadogan 
finds that the price 
of the rich soil of 
England is rising 


£U600. an acre in the of (he 
Exton Orange estate in Lmcohishire 
which is currently being agreed. 
The land figure is “at least 20 per 
cent higher than we would have 
achieved 12 tnimtim previously”. 

Many of the buyers are neigh- 
bouring formers who want to 
increase their acreage to taka bat 
advantage of the CAP payments. 
Some, says Rupert Rradstock, of 
buying agent Properly VMon, are 
charitable trusts, attracted by the 
yield and the security. In effect, 
they, are following the ancient pat- 
tem 'flf-the Oxford- and Cambridge 
colleges, who have (hrin v ested for 
less than the insurance companies 
and other financial institutions. 


iHm Ward, of Savfils Agricultural 
Research, estimates that those insti- 
tutions released about 50,000 acres 
in 1993 (as in 1992) and that their 

frnhtiwg j; have from a pfflk 

of 500)100 acres to about 200,000. 

Eagle Star is Hailing the Dunley 
estate in north Hampshire between 
Winchester and Newbury. The 
estate is 2,136 acres and Includes 
1,600 acres of arable land and a 
first-class pheasant shoot. The 
guide price from Strutt & Parker 
and Smiths Gore is £3Am for the 
whole. Interest is “staggering”, says 
James Laing of Strutt & Parker. 

Also in Hampshire, Hays Farms 
(Hurriey)1s for sale. This subsidiary 
of Hays pic has a company tenancy 
of 5,500 acres and 34 dwellings from 
property comp a ny St Martin’s. Sav- 
Els must receive tenders by May 3L 

Foreign buyers, with the excep- 
tion of sanm Danes and Dutch eager 
to farm in the UK, look for sporting 
estates. British buyers now include 
the rich eager to take advantage of 
the new Inheritance tax roles. Sell a 

Tinman in tha RngHirii frn ma rramtip^ 

says Christopher Wilson of buying 
agent Wilson ft Wilson, and put the 
proceeds into a hum with vacant 
possession. Work it for two years, 
perhaps by contracting out, and 
THT will vanish. His firm and 
accountants Grant Thornton have 
formed a “City landowners service” 
to handle this sort of wo rk. . 

To qualify for the IHT exemption, 
you must be wring the land to malm 
a profit That could include a sport- 
ing estate, as long it is not just for 


S; 1 

yi! 


- i-L. J..L 



Rirai Meat the Manor Farmhouse, Rlpa, East Sussex was recently add by Sbult & Parker In Lwwws for mora than the puido price of £500,000 


the owner’s recreation, says Brad- 
stock. But the value of the house 
and the value of the land must bal- 
ance so that the Revenue will not 
regard the farming as just a ploy to 
escape IHT. Bradstock suggests 500 

acres as a Twin rim Tm T jing foara 

that some owners - or their heirs - 
may receive a shock when the large 
house is reftised MH»m pfcinn_ 

The law's emphasis on proper 
husbandry mirrors best forming 
practice. There is no point going 
into forming, unless you are com- 
mitted. It is often frustrating, which 
is why farmers are traditionally 
moaners. And it needs time and 
capital- That is why most formers 
want to pass (he business on to 
their children. 

A successful recent sale was Jays 
Farm at Roundhurst, a smnllhniri- 
ing of 162 acres near Haslemere in 


Surrey, which Hamptons Messenger 
May sold at auction for £433£0G. 

At the beginning of the year 
Count f!firi«*npfr Grots German 
investors put together an estate in 
east Norfolk that had been split 
more than 100 years ago. Deciding 
to buy the 2J)90 acre Burnley Hall 
estate (which includes 580 acres of 
(hade 1 silt land), they asked Royal 
Life about adding the adjacent 930 
acre (all Grade I silt) Wmtertan and 
Somerton estate. The total bill was 
nearly £6m fin: some of the best 
land in the country (Grade I Silt 
land in Norfolk is about £2£50 an 
acre) which also has the first wind 
form in East Anglia. Brown ft Co 
was selling agent for both estates. 

An estate in east Norfolk, on the 
market for the first time since 1640, 
(when the Preston family bought it) 
is Beeston Hall with 570 acres and 


pheasant and duck shooting. No 
footpaths or rights of way cross the 
estate. The house is Georgian 
Gothic. This attractive morsel is 
priced at £L5m from Francis Hor- 
nor or Knight Frank ft Rutley. 

In south Humberside, Savills is 
sriling the 1834-acre Wariaby estate, 
with its Georgian house and a 
16)MO-hird poultry unit, for about 
cam. The sale of Tonge’s Farm in 
Lincolnshire will be a good test of 
the market. Robert ffindle of agent 
Walter’s says. It is the first commer- 
cial form for sale in the area for 
name and has 3.5m timm* of 
sand and gravel to offer as wen as 
the arable land. He has already sent 
out more than goo sets of particu- 
lars. The guide price is £1.29m. Ten- 
ders are due on Thursday. 

So forms are earning to market, 
even If some formers have decided 


not to sell but pass the form to the 
rtriMran- Strutt ft Parker reports 
instructions on 34 forms across the 
country totalling almost 20,000 
acres, as against 25 forms and 12,000 
acres a year ago. Some buyers are 
happy to purchase forms with sit- 
ting tenants (who are otherwise 
wen placed to buy themselves out). 
And with less pressure from the 
hanks to sell land to reduce the 
overdraft, those who do sell are in a 
strong position: 

■ Bidwells, Cambridge (0223-841 
841); Francis Homor, Norwich 
(0603-629 871) Grant Thornton, Read- 
fop (0734-211 521); Savills (071-499 
8644); Knight Frank & Rutley 
(071-629 8171); Smiths Gore, Winches- 
ter (0962851 203); Strutt & Parker 
(071-629 7282); Walter’s Lincoln 
(0522-525 454); Wilson & Wilson 
(071-7271977). 


\- ..v wr 


LONDON PROPERTY 


INTERNATIONAL PROPERTY 




R*-: '* 




>\,\ 0 £ ; 







.4 

y* i • 

' V 






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 £162,000, you 
can see why they’re 
already proving so 
popular. 

Hermitage Court 
- outstanding quality 
apartments close to Che 
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 



UajKI K> aWTWJ »» HAWS. 1*03 COMKTtf IW Of GOING K> MBS. MX *1 OUT MU* (no KM MIMS 


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 

aiuuK 


SWITZERLAND vilijuw •rmijon < Uie (DapfaU 

If ana is boUng far l» uMmma, urapott environment » ami a bom far sacufty 
and partttna or p er ma nen t residency, VHare in the region of Uorteux in Canton 
I Veud cflm the iterate lor season sohdton to poMon tree, yet varied and M 
modem lifestyle, set In a cadre of t rad tttonal village values. Situated at a 
cgmfoctahta attuda of 1200 ev Itofflare aver conceivable tacAy. tom sMhrg to goU 
Our brand new bufldbrg the ’Daphne' Is a smafl, select, freehold development 
avaBabie for sale to ravnaldont foreigner*. akuaM ii Ifia very heart of th# raeort. 
It is cprto sbnply . . . beyond words . . . but wMhin reach end oonamsing dMance 
tom Geneva, Laueanw. Bom, Gamed and Just abate anywhere else in Swtaortand 
or al of Europe. We are cMtgMed io ofler far tho M One to the BrilWi pttfcv 
Hues 1 to 3 bedraom InoompwaUe chaise style apartments. There has never bean 
a mora beauMd deratapmort In Ms resort; or arguably anywhara In to French 
spaaMng region of Switzerland. 

Deposits from £15,000 Pitas from £150,000 (Fr^350^00) 

Up to 00% ftnancfcig e vaMah ls at Snrtsa ftane mortgage rates at approx 0% 
These freehold properties represent to very beet sample of apartment* chalets 
and houses which we buM, image and pnwole In totzariand and America. 
Leonards P rapertto s tatsmaaonal la a Brtteh owned Swiss company w*h over 20 
years experience, adsitig Ml erMoe an Investments both Swiss and worldwide. 
Company domie ga flon and wort permits far dents ao efctm per ma nent Swiss or 
OS. 




LENNARDS PROPERTIES INTERNATIONAL 

For ftattwr bS u n nall on please cai us err 

071 5009482 or 081 468 S07Ofil94 days, avenmim and weetandsip to 


nffie ‘Fountains 

Xjunsey, IsCe of 9t£an 
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WEEKEND FT 



FINANCIAL TIMES VVEEKENP_MAY_WMA>M5_i994, 


TRAVEL 


A detour to drive 
you to distraction 


Valetta 

by 


D uring the 1080s, 
central Italians 
living near 
Autostrada 14 
had a sure way 
of recognising tbe autumn 
equinox. Each September, 
around the 21st, a wnan silver- 
grey car streaked south along 
the Adriatic coast “ Eaola , U 
sfgnar Honda Battada ancara!" 
the natives would cry. pausing 
momentarily from the harvest 
Yes, it was the Andrews 

expedition. We would be on the 
way to southern Italy from the 
Venice fihn festival and only 
two things stood between us 
and our destination. One was 
night gathering fast as we 
reached the frontier between 
Abrozzo and Puglia. The other 
was the sinister , looming bulk 
of the Gargano peninsula. 

Yon have to stop over but 
where? Do you turn right into 
the boring fiatia^rfa around 
Foggia? Or do yon dutch the 
complete works of Mrs Rad- 
difile for the gothic 

Gargano; a dead cert for any 
film-make r seeking locations 
for The Mysteries Of Ddolpho. 

The first time I took the Gar- 
gano route proved so memora- 
ble that I never gave it up. 
Picture a giant, rearing car- 
buncle half-way down Italy's 
coast Turning off the auto- 
strada, you go up a gentle 
rural incline for a few miles 
before the real roller-coaster 
starts. 

Twisting roads along bee- 
tling cliffs; pfaiws y» win g and 

Writhing; rtTmtantifind anfmala 

baying at a Salvator Rosa 
moan; and ghost-eyed houses 
teetering on impossible slopes. 
Ibis may be the most spectacu- 
lar coastline in all Italy, includ- 
ing its better-known twin, the 
Amalfi peninsula on the west- 
ern shore. I loved it so much 
on my first visit that I spent 
three nights there, seriously 
disr upti ng my hotel booking in. 
Calabria. 

The order of towns 1 stayed 
in on the Gargano was Pes- 
dnd, Vieste and Monte Sant 1 
Angelo. The first is a visual 
knockout BuQt as a 10th cen- 
tury anti-Saracen emplace- 
ment, its threadwork of streets 
and domed houses have their 
own semi-Arabic air, as if one 
has strayed into a transplanted 
casbah. Though the coast here 
is at its wildest, there are good 
bathing spots, plus caves and 
iiiinpd watcfatowers. 

Pescbici is heaven. Vieste, 
moving south-east, is more 


humdrum but more habitable. 
The land dives to an accommo- 
dating flatn e ss and you can sit 
at seafront cafes, sipping a Bel- 
lini (peach juice with sparkling 
white wine), as If you were in 
normal Italy. Good beaches, 
too. 

Even in Vieste there are a 
couple of treats. The ferry ser- 
vice to fo* Tremiti ic bmite Jets 
you explore these limpid land- 
dots 40kms off the coast 

The second treat is the 
wooden trebucca in Vieste 
which stands on the edge 
of the old town. A large con- 
traption of unthinkable antiq- 
uity, this brainstorm of tim- 
bers, ropes and pulleys is still 
used by Qsherfoik to catch 
mullet Watch them do it; say a 
few encouraging words; then 
boy, cook and eat the fish. 

My last ni ght was spent in 


Nigel Andrews 
heads for the 
hills on the 
Adriatic coast 


Monte Sant* Angelo and here, 1 
am afraid, aH restraint must be 
thrown to the winds. Tbe cold- 
est night I have ever spent in 
Italy was also the most exhilar- 
rating. Though It sits atop a 
mountain, as its name sug- 
gests, MS ’A is less spectacular 
than Peschid but mare zeaL 
Where could one eat, please? 
Oh, in Signora Soand-So’s din- 
ing room - she takes in friends 
and strangers. And there we 
were after knocking at an 
unsigned, unnumbered house 
anri being led through the fam- 
ily sitting-room (kids watching 
TV, baby being fed, grandma 
doing what looked like the 
football pools) into the teeny 
dining-room, where we sat 
down to sip hot minestrone 
and quarter a flavoursome fish, 
surrounded by the cat, the dog 
and the local priest 
And where could one sleep? 
Oh, in Signora Sucfa-andSuch’s 
place - she puts up waifs, 
strays and fugitives. So we 
froze through a slim-sheeted 
night in two beds an a stone- 
flagged floor with a view 
through the window of star- 
crowded sky and infinite, 
quilted, velvet-dark valley. 

Time moves an and McDon- 
ald's may move into Monte 
Sant* Angelo any time. Give 
the town a try before tt does. 


Of archaeological interest are 
St Michael's sanctuary, where 
the saint is satd to have madi=» 
several personal appearances 
during the I5£h century: and 
the splendid Norman castle 
with its views over the town 
and valley. It is not floodlit, so 
take a torch at night 

In thp middlp of thg GOTganO 
pe ninsul a is the vast and inter- 
mittently picturesque foresta 
Umbra. Go by car. “Public 
transport is thin on the 
ground," says one guidebook, 
putting things gently. But 
there are hundreds of roe deer 
to compensate. 

A quick camera-pan round 
the Gargano may give you a 
glimpse of other beauty or 
interest spots. Pugnochiuso 
(south of Vieste) has an eye- 
striking coast and good bath- 
ing plus a couple of the penin- 
sula's rare resort hotels. Vico 
Del Gargano (south of Pes- 
rfrrirp) fe a steep, anrimt vil- 
lage. Rodi Garganioo (west of 
Peschlci) has fine sandy 
beaches. And San Giovanni 
Rotunda and San Marco in 
Lamis are two saints' towns 
further faiand that stand senti- 
nel between the foresta Umbra 
amt thp autost rada. 

Much of Gargano, it must be 
said, is ffl-eqidpped for mass 
visitation, and some of the 
cheaper aut-of-towa hotels are 
built in the hope-and-prayer 
style of much southern Italian 

development 

But when love is semi-blind 
even handicaps became part of 
the beloved's char m. We have 
not mentioned the people of 
the Gargano. These have 
undergone even less touristic 
development than their towns. 
They still look at you, as you 
drive through their sheets or 
along their suicidal coast 
roads, as if you are mad. Do 
not attempt to get out of the 
car and reassure them. 

Think, rather, that they are 
probably right A degree of 
madness is a help when mak- 
ing that fateful motorway deci- 
sion to leave dun ffatn fls q and 
head for these frightening 
heights. I found that the peo- 
ple, once a natural rapport 
develops, are of the best rough- 
diamond quality- Yes, they will 
have you into their homes; yes, 
you will pay the proper price. 
But you stffl feel part of the 
fernily. even of the landorap p , 
as their rooms god hearts gnd 
wines (try tbe red Castel Del 
Monte) and earthy cooking 
secrets open up before you. 









A brainstorm at fimbare, ropes and puBeyK the ancient trebucca h Vieste, st» used for catchkig mdfet 


Aten naan Umy 


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Developers move in 
on the Black Pearl 


T hey call it the Black 
Pearl of the Mediter- 
ranean. The Romans 
knew it as Cossyra. 
To the Phoenicians it was 
Yram, the isle of birds. From 
the highest point of Pantel- 
leria, Montagna Grande, the 
continents of Europe and 
Africa are visible 100 miles 
apart To the north is Sicily; to 
the south Tunisia. 

Though the belongs to 
Italy, Arabic names survive in 
the villages of Kbamma and 
Bugeber. Bazaars in the main 
town, also called Pantelleria, 
sell African jewellery and 
clothes richly embroidered 
with tigers and elephants. 

This Is not package-tour ter- 
ritory - not yet Last Septem- 
ber the EU gave Pantelleria a 
grant: part of an initiative to 
promote Mediterranean islands 
and create employment in 
tourism and service industries, 
for mechanisation is reducing 
the numbers of traditional jobs 
on the land. 

A quarter of the island's 
8,000 population works on wine 
production. The famous one is 
Passito, a dessert wine similar 
to Sicily’s Marsala. Once 
picked, tbe grapes are spread 
out to sunbathe for three 
weeks, losing half their water 
content (Passito means ‘past 
it’). The result Is a sweet 
amber-coloured wine of about 
16 per cent alcohol; there are 
also less potent crisp dry white 
table wines such as Cossyra. 

A second, important local 
industry is growing capperi. 
Capers form the base for many 
sauces. The piquant flavour 
goes well with swordfish, mus- 
sels, squid and other seafood. 

Pantelleria has an area of 
only 32 square miles. You can 
sail round it in a day - the best 
way to view the rocky coast- 
line, sculpted by erosion In 
places into strange shapes. The 
Punta dell’Axco promontory is 
nicknamed dell ‘elef ante 
because it resembles a huge 
trunk dipping into the sea. 
Cacti, palms and olive trees, 
figs and prickly pears all flour- 
ish in the subtropical climate. 

The landscape is dotted with 
dammusi, dwellings built by 


the Saracens. Arched doorways 
and passages reflect the lack of 
bunding timber on the island, 
while white-painted cupola 
roofs serve to collect another 
rare commodity, water. 

Older than the dammusi are 
the sesi’ remains of neolithic 
tombs from 5JXJC BC built of 
black ctodery rock. The best- 
preserved examples are at Mur- 
sia, south of Pantelleria town. 

Tbe people of Pantelleria, the 
panlesdn, retain their own dia- 
lect: oasteddru, for example, in 
place of the Italian castello. 
They concede their capital is 
not the most beautiful town. 
Thirty-three days of shelling ; in 
tbe second world war demol- 
ished many buildings, which 
were replaced with the unat- 
tractive low-rise flats common 

Adrian Gardiner 
fears an island’s 
unspoilt beauty 
might not last 



elsewhere in suburban Italy. 
Part of the EU grant is ear- 
marked for improving the 
town’s image and to make safe 
its centrepiece, the massive 
Barbacane castle. 

A recently-installed plaque 
on the castle wall reminds you 
that, though you are on a 
remote island, the politics of 
Sicily and the mainland are 
never far away. It commemo- 
rates Paolo Borsellino, the Pal- 
ermo magistrate who, with his 
bodyguards, was assassinated 
by the Mafia last July. 

Crime is almost unknown on 
Pantelleria. In a small commu- 
nity everyone knows everyone 
else, and anyway escape is dif- 
ficult There Is one little air- 
port and an overnight ferry to 
Trapani in Sicily. 

The island’s remoteness 
helps make it - for now - an 
upmarket destination. Fashion 
designer Giorgio Armani has a 
holiday dammuso where he 
entertains foreign royalty. 
Well-off Homans and Milanese 
come in August, many for the 
cure, for the volcano of Mon- 


tagna Grande still slumbers. In 
two dozen places steam wisps 
out of the rocks; a cave at 
Sataria is a natural sauna. The 
only lake, Specchio di Venere 
(Venus's mirror), is rich in sul- 
phur and potassium. Bathing 
in it - or, better, rubbing your 
body with lakeside mud - is 
claimed to be good for tbe skin. 

Private developers, attracted 
by the HU’S money, are prepar- 
ing plans for a spa centre. 
Rudimentary facilities for 
scuba diving and wind surfing 
will be upgraded. A dozen lidos 
- there are no beaches on Pan- 
telleria - are planned round 
the coast A yacht marina is 
scheduled for tbe main port 
Scaur! on the south coast has a 
small harbour, but the weather 
frequently its use diffi- 
cult (as we discovered, needing 
three attempts to land). 

Improved transport is 
another priority. It is hoped to 
introduce a hydrofoil service to 
Malta, 100 miles east, where 
the airport Is already on the 
international map and large 
enough for charter traffic. For 
accommodation, the island’s 
1,000 beds will be increased by 
introducing agriturismo in ren- 
ovated dammusi. This form of 
self-catering has been success- 
ful In mainland Italy and is a 
growth market. 

Will all these developments, 
over the next four or five 
years, spoil Pantelleria? Go 
now, and experience the 
uncommercialised beauty of 
the Black Pearl, it may all he 
different in a few years. 

■ Avoid August, the Italians' 
holiday month. January and 
February are wet and in late 
May the sirocco, a hot sticky 
wind from the Sahara, biotas. 
Sea temperatures stay relatively 
high to December. Self-catering 
villas or dammusi ore acoitoWe 
from about £350 per week, sleep- 
ing four. There art only a few 
hotels, including The Port 
(inquiries: via Bargo Ualia. 
Pantelleria. TP. Italy, tel : 
0923-911257). Hatf-bonrd is 
around £300 per person per 
week. 

Tourist Information: Italian 
State Tourist Board, l Princes 
Street, London WlR SAY. 



1 

I t to my to m why 
lea youthful BrttiA 
tourist finds Vakri&S 
cosy. b t 
taugusfo; post rat Mental?: 
bans to scarlet stand sesfe* 
■t street Conors. 

But Valetta Is not Os an. 
where tu Britain, it rentefe 
essentially the handsuta 
homogenous and devoutly 
Catholic stone citadel con- 
ceived by the Knights of 
Order of & John after the 
great siege of 1565 and tenth 
anticipation of the infidefe 
next visit. 

On paper, Valetta appears a 
perfect piece «f Italian Baud* 
sauce military engineering 
and town planning, a right 
grid of streets and squares 
girded by massive wafts and 
bastions. A map does sot pc* 
pare yon for the ra&er-coKster 
of Its streets. 

Reminders of the knights 
are impressed an every street 
To them Malta owes (to me • 
cathedral, eh arches, national ; 
library and theatre. 

Belying the military severity 
of Valeria's facades are sous 
of the most glorious interiors 
and works of art in Korops. 
Tbe Holy In fi rma r y , begon ia 
1574, must stiU bout the 
grandest - and largest - ward 
of any hospitaL 
The Manoe! Theatre, btdtt 
for the "honest recreation of 
the people 1 * by Grand Blaster 
M&noel de Vllhena in 1731 and 
still is use, is a rococo canto- 
tion of pale green, tin-quota* 
and gilt, the tiered boxes ofifr 
intimate oval auditorium gar- 
landed with fruit, flowers and 
musfeal instruments. 

Open the door to St John’s 
Cathedral, the conventual 
church, and there is the first 
complete expression of florid 
High Baroque. Everything, 
from the niusiauistlc painting 
on the hamd-vanlted raffing to 
tim arabesques of the side da- 
pels, was masterminded and 
partly executed by one man, 
the Calabrian Mattia Preti, 
There Is no surface that he did 
not cover with paint, gold leaf;-, 
marble or carved stone. 

T here are any number 
of aMarpleces of vary- 
ing merit - and two 
remarkable Caravag- 
gios. It is worth going to Malta 
for these alone. Caravaggio 
was the "excellent painter" 
invited to the Island and made 
Brother and Knight of Obedi- 
ence in 1608. High up in tbe 
chapel of the Italian longue 
hangs an impressive St Jer- 
ome, while dominating the 
Oratory of St John is his mas- 
terpiece, The Beheading of St 
John the Baptist, his largest 
and only signed work. This is 
a canvas to chin the blood. 

All the action is compressed 
into a harshly-lit comer of an 
otherwise gloomy prison yard. 
Caravaggio chooses the 
moment when the execu t ioner, 
who has already halfcevered 
the Baptist's head, grasps hfe 
hair to get a good purchase 
before finishing his job. 

Nothing tbe reality of 
this brutal death. The goater 
impassively directs the execu- 
tioner to put the head on the 
charger, held by a yovng, 
bare-armed ghi who is surely 
SalotnA Only her makt looks 
on in horror. Caravaggio left 
his name in the oozing blood. 

By 7pm, Valetta is deserted. 
There is hardly a soul on.the 
street to appreciate the floodlit 
fortifications or the church 
domes spangled with light 
bulbs. The middle classes are 
off home to Sliema, and the 
tourists pursue the nightlife 
offered along the island's care- 
lessly developed shore. 

Valetta evenings are best 
spent admiring' the panorama 
over Marsamxett harbour 
from the roof-top dining room 
of Giannini, the island's best 
restaurant, or to the 16th cen- 
tury cellars of the Hotel Cas- 
tille, savouring pizza Maltese- 
style made with local sausages 
and the pepper-bound goaf 5 
cheese made on Goto. 

By night one most see 
Mdlna. While Valetta Is quiet, 
the old capital of Malta is 
silent and haughtily aristo- 
cratic- Its narrow, angular 
medieval. streets are lined 
the blank, ffrfnitiny waDs ® 
still-inhabited palaces &ad 
monasteries. .. . 

Carved Norman portals a* 2 
Baroque c orn ic es are threw 
into exaggerated reBef. fetr 
the wraps of darkness the 
town Is hushed and Msfcrionfc 
By day, the poetry is lost am*J 
the clatter of the 
frame and the glare of the 
acrylic cardigan. 

Susan Moot* 

Moon travelled t 
tad stayed at V* 

. • m -J. 


■ Susan . 

Air Mala tad stayed at v* 
fix-star Hotel Phoenicia at rW- 
riana, Just outside Voloilat off 
date. Civilised Iona toeeA end# 5 


gate. _ 
should 
groups to 
their week 


CtviUsed long weekend#* 
bear in mind that ^ 
Malta tend to sam 
in Valetta. 









\/N 

n 

a 

,s 

;* 

. i'vi * * 

.1 , ■' 


FINANCIAL TIMES WEEKEND MAY 14/MAY IS 1994 


Kashmir prays for 
paradise restored 


WEEKEND FT XXI 


TRAVEL 



M hid was to be tie 
first entry for 1994 
. tn. Gulam Butt's 
visitors' book. As 
I wrote my name, 
be predicted that my stay on his 
houseboat was a good omen. My 
last visit to Kashmir, in 1981, was 
long before the recent troubles 
started. As the owner of a fleet of 
eight de luxe houseboats, moored 
on Upper Pal lake, Butt's story was 
not unfamiliar. 

Since 1990, when activists began 
an armed struggle against the 
bidian government, the beautiful 
valley of Kashmir, with its 1,500 
splendid wooden houseboats, has 
lacked, a how of tourists. Mostly, 
the houseboats lie empty. 

Enjoying breakfast and looking 
out over die lake towards the snow- 
capped mountains and the Shaiimar 
gardens, laid out by the Moguls in 
(he 17th century, it was hard to 
behove that Srinagar was still the 
focal point of a guerrilla war which 
had put the, entire valley under mil- 
itary occupation. 

The rnriian a rmy is determined to 
crush the insurgency. Equally, the 
mfittants are as committed to con- 
tinuing their straggle against what 
they view as the tyranny of the 
Titian government “Asodj” (free- 
dom) is an the Bps of shop owners, 
taxi drivers and houseboat owners. 

For people such as Butt and the 
14)00 other houseboat owners, the 
loss in livelihood has been tremen- 
dous. SMkara owners have also suf- 
fered: a paddle-boat ride on Pal lake 
was once a feature of a Kashmiri 
holiday. Today the ahlkaras lie dor- 




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maut; the lake is thick with weeds. 

Hamid, a taxi driver and house- 
boat owner, Is more stoic than some 
about the deprivations. “We don't 
care about our economic problems, 
but we do want independence, 7 ' he 
said. Another houseboat owner 
dared not complain about the loss 
to his business. “If militants hear 
me say my business is suffering, 
they will come to me and say: You 
are worrying about money and we 
are losing our tives,’” 


Victoria Schofield 
visits a valley ‘too 
beautiful for war ' 


Yet contrary to what I had heard 
before my visit; , the valley is not 
closed, either to journalists or tour- 
ists. And Robert Shadworth, the 
tour manager of Top Deck bus 
tours, has regularly accompanied 
tourists, mainly from Australia and 
New Zealand, to Kashmir as part of 
a three-month bus trip from Nepal 
to London. 

"Except for one year, when the 
trouble started, we have continued 
to ran tours twice a year,” he said, 
“and we've never had any difficulty. 
One time, we were sitting on our 
houseboat and we were told later 
that 150 people had been killed in 
the centre of town, but we never 
heard a thing.” 

. Have .prices for accommodation 
gone down? “Well, they haven’t put . 
them up in five years," he said. 


Commercial flights run regularly 
to Srinagar. The airport is Ml of 
army personnel Intelligence offi- 
cers require all foreigners to report 
to them, and bags are searched. 

But visitors do get through: Step- 
hen Humphrey, an accountant from 
Birmingham, was relaxing on a 
houseboat on Pal lake as a way of 
escaping from the heat and bustle 
of Delhi “I didn't know about the 
place nor its beauty, hut a travel 
agent in Delhi made the sugges- 
tion,” he &dcL 

Travellers also visit Kashmir to 
go trekking in the foothills of the 
Himalayas. A French travel enthu- 
siast, Patrlque Hubert, has been in 
Srinagar for three years, organising 
accommodation an houseboats and 
trekking PV pprirHrrne . 

Yt is not what we call classical 
tourism, not your average holiday- 
maker; the Americans have mainly 
stayed away, but stni people come 
from Australia, Japan, Germany, 
France, Italy,” he said. “Sometimes 
they fail in love with the place, 
which proves that Kashmir stDl has 
the ability to attract" 

Nor have skiers forgotten the 
magnificence of the Himalayan 
mountains. Transport is mostly by 
helicopter, and an outfit called 
Himalayan Heli Ski, run by the 
Swiss skier Sylvain Soudan, has ' 
continued to offer a week’s holiday 
in Gulmarg from January to April 

The town of Srinagar has little 
attraction for the tourist, and the 
consequences of the insurgency are 
all too evident. The military Is 
everywhere. There are bunkers at 
each crossroads and straddling 






Kashmiri pony-handtonL Despite mWary occupation, Kashmir stii attracts hardy tourists 


every bridge. The streets are filled 
with gun-toting border security 
forces and local police. Without 
warning, streets can be cordoned off 
because of a “crackdown” - com- 
mon parlance for a search by the 
military for weapons. 

The curfew in Kashmir has now 
been lifted, but no one wants to 
venture out after dark. Hamid, the 
taxi driver, told me how frequently 
he bad been stopped by the army 


and beaten up on his way home 
after work. 

There are countless stories of 
young men being apprehended by 
the military, tortured and killed. 
One of the former maharajah's 
guest bo ns effj which has a ma gntfi. 
cent view over the lake, has been 
taken over by the border security 
forces and is known to be one of the 
interrogation, centres. Suspected 
militants are t«iw» there for what 


an intelligence officer called a “few 
slaps” to make them reveal where 
they have hidden their weapons. 

People kept saying Kashmir was 
too beautiful to be tom apart by 
war. And despite their political 
troubles, the Kashmiris appear as 
eager as ever to welcome tourists. 
“We don’t have any other Industry. 
Our main income is from tourist 
traffic,” says Abdul Kotroo, former 
president of the houseboat owners' 


F ilm-goers who have seen 
The Piano will have left 
the dnenut suddenly con- 
scious that New Zealand’s 
history of European settlement 
must have been more Hood than 
butter. Saflhtg around the glorious 
archipelago known as the Bay of 
Islands, 160 miles north of Auck- 
land, can have the same startling 
effect 

Having dropped anchor in the 
lagoon of the small island of Motu- 
aruhia after our first day’s sailing, 
our party was determined to get 
ashore and take some exercise 
beyond rope-pulling. 


Island hopping among the ghosts 


eastern shore. Once this was a 
Maori stronghold. With ft 200ft 
drop into the sea on one side and a 
single track up through the forest 
on the other, the fla fandfng tribe 
could be virtually impregnable 
When ewmte ramie visiting. 

. The views through the outlying 
islands to the misty Pacific were 
evocative. It was a crewmember 
from another visiting yacht that 
caused the first shiver. She sakl she 


Our goal was the summit of aa.had^not^lik^whatahe.liad-read 
steep cHff overlooking the Island's 1 about foe place. Her words damped 


our dinghy ride bads to Island Girl, 
though a G&T lifted the spirits. 

UirnnHag tng ihr^ ph a guide to 
the area, I decided that it could 
scarcely have been Captain Cook’s 
visit in 1709 that had caused our 
misgivings. Mbtnaruhfa was Cook’s 
first landfall in New Zealand, and 
despite a brief skirmish with some 
Maoris, there was no great trouble 
' between natives and explorers. 
"Abundant fresh celery,” noted 
:-Cook*s botanist, Joseph Banks, 
although we saw none. 


Peering more closely at the book- 
shelf in the saloon brought forth a 
menu detailed history. One of the 
first European settlers in the area 
was a Scottish farmer named John 
Roberton. He bought Motuaruhla 
from a Maori chief in 1839, built a 
cottage, brought his wife and two 
children from the mainland and 
began farming. 

Four months later he was drow- 
ned, sailing his boat to the main- 
land outpost of RnsselL This small 
town was New Zealand’s first capi- 


tal and still has its feet in the sea. 

Despite having two small chil- 
dren to raise, Roberton’s widow 
struggled on with the farm for two 
more years. She was aided by a 
young settler named Thomas Bull 
and a Maori chief called Maketu. 
Unfortunately for her, Maketu was 
numtaify unstable «wd Bull a vio- 
lent drunkard. 

By the time the Maori finally 
split Bull’s head open with a log- 
ging axe, Ufa on the island must 
have become a nightmare. Mrs Rob- 


erton told Maketn that he would be 
taken to Auckland and hanged for 
ids crime - whe r eup on he carried 
her and the two children to the 
dizzy heights of the stronghold and 
hurled them into the sea. 

The widow’s prediction came 
true. Maketn’s tried was a colonial 
sensation that reached the London 
newspapers. This sense of violent 
and Important history, just a few 
generations back. Is one of the fac- 
tors that makes the Bay of Islands 
such an intriguing place to sail. 


association. “And we pray to 
Almighty God to restore the peace 
in our valley.” 

Contrary to rumours that the 
houseboats are being sold plank by 
plank, owners are keeping them 
ready. Gulam Butt's boats were 
immaculate and he Insisted I see his 
“honeymoon houseboat”, ever hope- 
ful that Kashmir would again 
become, tn the words of Emperor 
Jehangir, “paradise on earth”. 


The sailing is as good as in the 
Whitsundays or Bahamas, the seas 
as sparkling, in addition there Is a 
powerful sense of the recent past 
At Opua, where the charter 
yachts are based, the steam train 
from the inland town of K&wakawa 
still visits the jetty where the 
famous kauri timber, said to make 
the finest masts in the world, was 
once loaded. 

Keith Wheatley 

■ Among UK companies that can 
organise yacht hirings in the Bay 0 / 
Islands is The Moorings: 188 North- 
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BOOKS 


A fter getting off to a 
promising start as a 
young writer with 
Ppems, Plays, children's 
«unes and the first ever radio 
Hughes became a 
ggrty In 1929 with High Wind in 
fdnaica. It was acclaimed by crit- 
ks on both aides of the Atlantic 
®J£ ay fellow-novelists such as Vir- 
pna Woolf and Fori Maifr * Ford. 
In this rich biography Richard 
Graves implies that some oftts suc- 
cess was owed to Clough WBHans- 
EUte’s wife Amabel (nde Strachey) 
who told Hughes he most put some 
sex in it - which hednlydkL 


A writer driven by prophetic fury 


Anthony Curtis reviews a new biography of Richard Hughes 


made re calling his next novel In 
Hazard. It appeared after a ten year 

Matas during which Hughes did 
extensive research Into storm con- 
ditions at sea. It is regularly com- 


pared to Conrad’s Typhoon: "I was 
carried along in my writing erf it by 
a kind of prophetic fury, seeing so 
dearly the abyss Europe was about 
to be suited down into by war, and 
wanting to tell people it would be 
fearful, but they were going to 
come through.” 

Publication of In Hazard in 1938 
brought the first phase of Hughes's 
career to a dose. Aged 40 when war 
broke out, he was drafted into the 
Admiralty for the duration. The 
Welsh writer became the very 
model of a modern civil servant 


whose work paved the way for the 
Normandy landings. 

Up to then Hughes had lived his 
life eschewing any kind of fixed 
employment apart from writing. 
After being head boy of Charter- 
house, and up at Oxford in the 
orbit of TJE. Lawrence, Masefield 
and Robert Graves, unde of the 
biographer, Hughes had retired to a 
primitive cottage in rural Wales to 
become a writer. But be did not 
stay there; he travelled danger- 
ously far and wide. The biography 
admirably draws together the 


RICHARD HUGHES; A 
BIOGRAPHY 
by Richard Perceval 
Graves 

And n Deutsch £20. 491 pages 


many adventurous threads that 
went Into such a comparatively 
small body of work. 

We follow Hughes going steerage 
to New York and suffering the 
indignities of an immigrant’s incar- 
ceration on EQls Island. We see 


him amo ng Croatian nationalists in 
the Balkan*. On the personal level 
we observe the effect of the deaths 
of bis and beloved sister, hts 
difficult relations with his posses- 
sive mother, his first great affair 
with Nancy StaQibrass who was to 
mar ry his friend Peter Quennell. 
And then bis happy but not 
nntwwniriM marriage to Frances 
Bazley. daughter of a baronet, with 
whoa he raised a large family. 

As he matured Hughes became 
deeply religious, committedly 
Welsh mid a staunch defender of 


causes in which be believed. He set- 
tled happily into the ride of "Sei- 
gneur" of the North Wales village 
of Laugbarne where be and his wife 
lived before the war. It was the 
Hugheses who were responsible for 
Dylan and Caitiln Thomas descend- 
ing upon that village and ulti- 
mately giving it the tourist attrac- 
tion status it now has. 

Hughes was as bookish as he was 
out-going. He accumulated a vast 
library relating to the Nazis and 
made many post-war visits to Ger- 
many for The For and Us sequel 


The Wooden Shepherdess, jp 
novels the demoniac (w. 
ter is poised with that of t 
German nun madefied to her 3 
UnmonStThemaofLbitoTj 
observed by the Welsh artstaS 
Augustine, a persona of HttrhZ 
himself. 

Hughes knew exactly wbtt ». 
to happen to the subsequent &an£ 
five but because of Us perfection. 
Ism the chances of coophti&g tto 
work to farther volumes were tiff 
"It Is a race with tin untotata? 
he joked. He died aged 78 as old K 
the century having sretty to* fa* 
race. Graves’s eneficat btagnpto 
which appears alongside 
paperback editions of the acral, 
from BarvlU, should herald * 
revival of interest in what renafer 
a remarkable «^p*TtTmt1on fa fg 
modem English noveL 



History 
in the 


balance 


Malcolm Rutherford admires 
Kissinger the academic 


I f you want to pay some- 
one a compliment, give 
them Henry Kissinger’s 
Diplomacy. True, it is 
immensely long; half way 
through, I began withdrawing 
my hirHal im pTwarirm that it is 

one of the best bocks I have 
read on any subject. But it 
picks op again and is certainly 
one of the best, and most 
enjoyable, on international 
relations past and present 
Kissinger t” 6 many advan- 
tages. He was bom in Germany 
In 1923, moved to the US in 
1938 and served in the Ameri- 
can army in the second world 
war. He was an historian at 
Harvard long before he worked 
far any American administra- 
tion. Comparisons between 
19th century Europe and the 
20th century world come natu- 
rally to him- He wrote A World 
Restored : Castlereagh, Metter- 
nich and the Restoration of 
Peace, 1812-1822, some af which 
is reflected in Diplomacy, in 
the mid-1950s, it was intended 
as the first of series running 
up to the first world war. 

Real diplomacy then inter- 
vened. KiHtt h igur has benefited 
from the experience. He now 
takes us to 1994, sometimes 
with an inside view, and with a 
look beyond. Moreover, Kis- 
singer, the academic, can write 
better than Kissinger, the prac- 
tising statesman, ever spoke. 
Hie book is a pleasure to read. 

There are also defects. Kis- 
singer is not much interested 
in social or economic trends: a 
country’s economy is relevant 
to him only in so for as it adds 
to political and military power. 
He is not greatly interested in 
democracy either, still less in 
hnman rights. On the latter he 
advises President Clinton not 
to push too hard in America’s 
relations with China; if he 
does, the Chinese might not 
take him seriously in his pur- 
suit of equffibrimn in Aria. 

Again, there is a curiously 
old-fashioned approach to the 
“great men” of history. Kis- 
singer has bis heroes; Riche- 
lieu, Bismarck and, to some 
extent, the Goman chancellor 
Stresemann among them. Even 
where the bad for outweighs 
the good, he cannot always 


avoid a sneaking admiration. 
For instance, “Stalin was 
indeed a monster, but in the 
cnnrtqiV: of internatio nal rela- 
tions, he was the supreme real- 
ist - patient, shrewd, and 
Tmpiaffflhte , the Richelieu of his 
period”. Kissinger is not a mor- 
alist 

For all his brilliance, nritiwr 
is he perhaps as good as he 
fhinira he is at reducing his 
thoughts to a thesis. If Diplo- 
macy has a single theme, it is 
that there is a fundamental dis- 
tinction between a foreign pot 
icy based on the pursuit and 
maintenance of a balance of 
power and one based on altru- 
ism. Kissinger prefers the for- 
mer. 

ffis mam illustration comes 
from the presidencies of Tbeo- 


DIPLOMACY 
by Henry Kissinger 

Simon & Schuster £25. 912 pages 


dore Roosevelt and Woodrow 
Wilson. Roosevelt, he writes, 
went in for “muscular diplo- 
macy". He was the first US 
president “to insist that it was 
America's duty to make Its 
influence felt globally, and to 
relate America to the world in 
terms of a concept of national 
interest”. Thus he was a “war- 
rior-statesman" whereas Wil- 
son, with his belief in the 
power of public opinion as a 
force for good, was a “prophet- 
priest”. The difference between 
the categories is that “states- 
men, even warriors, focus on 
the world in which they live; to 
prophets, the ’real* world is the 
one they want to bring into 
bring". 

Yet one wonders if the real 
world is anything like tidy 
enough to sustain such a dis- 
tinction. Kissinger makes very 
little allowance fin* accident s, 
mi s tak es or the sheer unex- 
pected (Pearl Harbour, for 
example). 

There is also a tendency to 
idealise the past One of the 
reasons he believes a balance 
of power was maintained for so 
long after the Congress of 
Vienna in 1815 was that the 
participants had shared values. 
He is distinctly shaky about 



saying what those values were, 
save perhaps a preference for 
(he status quo , just as he sel- 
dom denies one of his favourite 
words - “legitimacy". Some- 
times he seems to be saying 
that if only everyone had been 
as Intelligent as Bismarck, the 
European peace might have 
lasted even longer. Germany 
would have simply emerged as 
the dominant power in Europe 
without war and, as Kissinger 
observes, the Germans have 
got there in the end. 

It is not ultimately for the 
judgments, however, that 


Diplomacy should be read. It is 
for the sheer historical sweep, 
the characterisations, the sto- 
ry-telling, the ability to look at 
large parts of the world as a 
whole. The failings in British 
policy between the two world 
wars, for instance, look quite 
different when viewed by a dis- 
passionate American historian. 
Kissinger thinks that it was 
the reluctance to make alli- 
ances that let Britain down, 
and a failure to understand 
Stalin. He is also notably sym- 
pathetic to Britain and France 
at Suez. He never makes the 


mistake of condemning with 
hindsig ht 

Kissinger's own role in his- 
tory emerges very gradually. 
The first use of the first person 
comes in shyly on page 347 
when he mentions a disagree- 
ment with AJ.P. Taylor. Viet- 
nam and the opening to China 
come much later and are 
among the best sections in the 
book. They are not quite auto- 
biographical, but he has a mar- 
vellous way of combining past 
and present experience. Rich- 
ard Nixon, he thinks, had the 
most sophisticated grasp of the 


global balance of power of any 
president since Theodore 
Roosevelt 

In the 19th century the US 
had no need for a balance 
because it was not confronted 
by any powers needing to be 
balanced. The change by the 
end of the 20tb, Kissing er con- 
cludes, is that America is “an 
island off the the shores of the 
large landmass of Eurasia, 
whose resources and popula- 
tion fax exceed those of the 
US”. That is why a balance, or 
a series of balances, still mat- 
ters. 


Fiction/Joan Smith 


Fantasy, 
fame and 
fulfilment 





. i *• 

nf* ■ 


P aul Micou’s sew novel 
opens with a cosy. 
John Majorish image 
of Britain: the white 
diffe of Dover fading into sea 
mist from a cross-Channel 
ferry. But Adam's Wish is 
about the new Europe rather 
than the old, visualising 
England. France, Italy, even 
the former Yugoslavia, as the 
playground of a new 
aristocracy of money ami fame 
with its attendant media 
circus. 

Micou’s hero, Adam Gosse, is 
a slightly stuffy Anglo-Belgian 
solicitor who strays into this 
fast-living set more or less by 
accident when he is best man 
at a friend's wedding. He is 
seated next to Natalie, a 
beautiful young woman who is 
famous only for being famous. 
Hello! magazine is never 
mentioned, but it is clearly the 
presiding deity of Natalie's 
milieu. 

Because Adam is feeding left 
out and depressed as all his 
friends pair off; he agrees to 
Natalie's surprising request 
that be chauffeur her to Paris 
where she is about to embark 
upon a film career. By 
acceding to this whim, and 
with as few achievements as 
Natalie to justify it. Adam 
achieves overnight fame as the 
flanefi of a starlet 
These are lives governed by 
chance, and by the hysterical 
interpretations of insignificant 
events offered by tabloid 
newspapers. The novel is put 
together like a movie, with one 
lavish set rapidly giving way 
to another Adam moves from 
a pretentious French chdteau 
to a film director's minimalist 
apartment in Paris to a small 
Italian town which has been 
reconstructed to resemble 
Dubrovnik. It is only when 
the director announces that 
he Intends to move everyone to 
a genuine war zone in Croatia 
that reality intrudes and Adam 
decides it is time to go 
home. 

Micou’s novel is an 
ambitious satire on the ease of 
achieving and corrupting effect 
of fame. Apart from Adam 
(whose surname, Gosse, means 
“kid'’ in French, suggesting 
both innocence and 
vulnerability), the characters 
are introduced only by their 
first names, a device which 


neatly emphasises their 
dfapaskhifity. Yet Mlcou rarely ' 
descends into mere caricature; ' 
his writing Is assured and - 
often very funny. 

The novel is about - 
authenticity and the ' 
importance of maintaining' 
some vestige of identity asaft 
barriers come down. Its moral , 
centre Is a reluctant self 
awareness on Adam's part 1 
which never permits him to' ' 
become a full participant fa 
Natalie's frenetic world; his : 
curse is to recognise detires fa 
himself which he despises fa 
others. 

The characters in Pippa 
Passes have no such problems. 
Their names are of the rich 
and titled variety, so that the 
Marchese dell ’Orlando is akfe - 
to boast of his English wife 
that “Marcia's lineage is longer 


ADAM’S WISH 

fey Paul Micon 

Bantam £14.99. 251 pages 


PIPPA PASSES 

by Romer Godden 

Macmillan £12.99. 172 pages 


than mine". Rtenw Godden's 
new novel takes its title from 
Browning and is firmly set fa 
the old Europe in which Italy 
still represents a gateway to 
sensuality for the reprebed 
and parochial English. 

Godden has written for both 
children and adults fa ho* long 
writing career and this piece of 
fiction Is, according to her 
publisher, aimed at “everyone * 
young in spirit". This is 
actually a nervous way of 
signalling that Pippa Passes Is 
a hybrid, a piece of adolescent 
wish-fulfillment with a crudely 
handled lesbian rape scene 
thrown in. 

The spirit hovering ova: this 
mawkish tale of a young 
English girl’s meteoric rise 
from the corps de ballet is not 
so much that of Hello! as Noel . 
StreatfieM, creating a sort of 
Ballet Shoes with sex. There 
could hardly be a greater 
contrast with Paul Micou’s , 
jaded, polyglot pan-Europeans - 
andit is a relief to recognise fa 
Pippa Fane a ghost from.-tbe 
past, receding fato the mist aa 
fast and as surety as Dovwfi - 
white cliffs. 





L ucie Duff Gordon was 
an unconventional, 
brave, talented and 
cosmopolitan woman 
who lived in mid-Victorian 
Britain, contracted consump- 
tion and, fa 1882, left her fam- 
ily to go off to Egypt to die. 
There was no denying the 
meaning of her exile, no hope 
of recovery, yet from her new 
home in Luxor she survived 
for seven years - Car longer 
than the doctors had imagined 
- and in the course of that 
suspension of sentence she 
wrote a classic book and 
achieved a sort of happiness. 

Lucie is not unknown to pre- 
vious biographers. Apart from 
her own Letters from Egypt 
(which is kept in print by 
Virago), she is familiar 
through the unhappy lives of 
ho* parents, John and Sarah 
Austin, who have been com- 
memorated quite recently by 
Lotte and Joseph Hamburger; 
in two studies in Victorian 
social history under the appro- 
priate titles Troubled Lfees and 
Contemplating Adultery. The 
father was a neurotic and 
hopeless professor of jurispru- 
dence, toe mother a successful 
and respected translator who 


Banishment and 


resurrection 


J.D.F. Jones on the life of a brave and talented 
Victorian woman who flourished in exile 


A SUPERIOR SERVICE 
FOR AUTHORS 

• Your Published 

• All Suhiccn Coomkral 

• RcprioH Moat 'Wttannc 

• WWMw*fc Saks KcMt 
Hew write ttrfM daaitx 
jjgmfutlUifchgCo agony 

dept VI, pnheHow, UgW 

37Dake9L,lflKk«WlMSO* 


spent her middle years 

engagari fa an TTTwm R mmnnterl 

affair by post with a Polish 
prince. 

Lurie was brought up fa the 
heart of the Intellectual society 
of the age. John Stuart Man 
was one of the family, Jeremy 
B antham an. unde-figure, Car- 
lyle, Heine and Sydney Smith 
were intimates, Tennyson, 
Dickens, Thackeray and Mere- 
dith passed through her draw- 
fag room. It was an unusual 
childhood, which Included a 
period of Jane E^re-styfa mis- 
ery at boarding school, but at 
18, beautiful and accomplished, 
she made a romantic marriage 
to Sir Alexander Duff Gordon, 
an exemplary young Treasury 
Official whose only fault was 
that he had no money. 

Katherine Frank, her new 
biographer, does not attempt to 
exaggerate their Importance; 
“Lucie and Alexander do 
appear to be Tesser fives’; they 
hover on the fringes of the 
lives of more famous, powerful, 
wealthy people." But she then 
quotes their friend Meredith to 


LUCIE DUFF GORDON: 
A PASSAGE TO EGYPT 
by Katherine Frank 

Hamish Hamilton £17.99. 

399 pages 


the effect that “a lesser life 
does not seem lesser to the per- 
son who leads one." This is jus- 
tification enough for a biogra- 
phy. 

Then she fell 111 and was 
banished from the English 
climate and from her three 
children- But she fell fa love 
with Egypt, or rather with 
Upper Egypt where her house 
on top of Luxor Temple had 
previously been occupied by 
Uhangyi llinn and Flaubert, and 
she particularly identified with 
toe Temple of Isis at Philae. 
“the most beautiful object my 
eyes ever saw?*. There are 
echoes here, of course, of The 
Wader Shores of Love, except 
that Lurie was no Lady Jane 
Digby, who married the Sheikh 
of Pahnyra, but a sensitive and 
gifted woman whose exile was 



HufanOaitadiCdtatti 


Lady Lucie Duff Gordon; drawn 
attar W.K Phflfips 


not just to heal her. 
temporarily, but also to 
transform ter. 

Katherine Frank has written 
A Passage to Egypt out of her 
own personal tragedy of the 
death of her husband in Cairo. 
She therefore discovers 
significance in the Island of 
Philae, for Lucie and, it is 


admitted, for herself! The myth 
of Isis tells how, on the murder 
of her beloved Osiris, she 
remembered the parts of his 
body and conceived a. new life, 
a son, Horus. Frank sees in 
Lucie’s resurrected years in 
Luxor a “re-membermg" of her 
life and describes this book as 
“the record of my quest for 
her. the life 1 wrote while 1 
struggled to re-member my 
own". 

This is dime with restraint, 
and is not unmoving, though I 
do not doubt that the 
biographer is projecting, as 
psychologists say, onto the life 
of her subject For the rest it 
is a conventionally 
chronological, agreeable, 
always interesting tale, 
collected, we are told, largely 
from unpublished letters and 
documents. 

There lies a weakness; Frank 
seems reluctant to rely more 
heavily on Lucie's own words. 
Letters from Egypt may have 
been reprinted frequently - 
they caused a great stir in 
1860s England - but we do not 
get enough of their content or 
flavour. In contrast the time 
Lucie spent fa South Africa in 
1861 blazes into life because we 
are shown it entirely through 
Lucie’s own letters. 

"It was impossible to be 
lonely or unhappy in Egypt" 
brills Ms Franks fa a rare lapse. 
Let ns just say the dying Lucie 
was less unhappy than she 
might have been. It is a world 
long gone. These days she 
would probably have been shot 
by the Fundamentalists. 


Wired in to words 


W ith the challenge 
“Let us do away 
with the folklore 
that parents 
teach their children language 0 . 
Professor Pinker sets out to 
prove that language is instinc- 
tive. and that its structure is 
"wired” fato the human brain. 

A psychology professor at 
the Massachusetts Institute of 
Technology, he opens with 
some of the questions that 
have long troubled his profes- 
sion. “Why is It that a nation 
that can put a man on the 
moon cannot build a computer 
that can take dictation?” he 
asks. Instead of worrying that 
computers might eventually 
outsmart them, people should 
puzzle more about why the 
human brain is so good at 
understanding language, he 
says. 

Engagingly written, his book 
is packed with the kind of 
anecdotes and references to 
rock stars now standard 
among academics keen on 
popularising science. He amus- 
ingly - though uncontrover- 
siaily - demonstrates that peo- 
ple do not always bear words 
correctly. I will never again 
hear the phrase “A girl with 
kaleidoscope eyes", from the 
Beatles' song “Lucy fa the sky 
with diamonds" without hear- 
ing Pinker chanting: “A girl 
with colitis goes by". 

But toe three main planks of 


Pinker's argument prove 
unequal to the weight he puts 
on them. For a start, he does 
not convincingly show Hint 
children “know things they 
could not have been taught". 
He says that children's mis- 
takes such as “we Yielded the 
baby rabbits” cannot be “an 
act of Imitation"; but he does 
not allow that it could simply 
be unsuccessful imitation. 


THE LANGUAGE 
INSTINCT; THE NEW 
SCIENCE OF 
LANGUAGE AND 
MIND 

by Steven Pinker 

Alien Lane £20. 494 pages 


His second claim that "there 
are common elements between 
all languages", also arouses 
doubts. According to Pinker, 
“if the basic order of a lan- 
guage is subject-object-verb It 
will usually have question 
words at toe ends of the sen- 
tence." Usually? That hardly 
sounds universal. His claim 
that “if a language has a word 
for 'teg' it will have a word for 
'arm' also raises questions: 
why not suggest that language 
is shaped by people's need to 
refer to their bodies rather 
than by neurological “wiring'? 

Above all, it is the "ubiquity 
of complex language among 
human beings" that, to him ,, 


offers "compelling proof 
language is innate". The 
max of his argument Is. ^ 
claim that there is a 
guage" of images inside the 
brain, which he calls ‘‘mania* 
lese". “People do not think fe 
English or Chinese or AjachR 
they think in a language « 
thought [with] ... symbols far 
concepts" he speculates. 
“Knowing a language is know- 
ing how to translate mentalese 
fato strings of words and vice 
versa". 

Despite developing this 
hypothesis at length, he does 
not acknowledge the famous 
arguments of Ludwig Wittgen- 
stein, the philosopher, that the 
theory of a “private language 
such as “mentalese" is incoher- 
ent. Wittgenstein argued tbata 
person would have no criteria 
for correctly matc h i n g th®* 
inner symbols to words as be 
would be the only arbiter « 
the symbols' use. , 

P inke r has fallen fatO the 
trap which has caught many 
working fa his field- He has 
been tempted to claim fflM* 
about the structure of «*® 
brain than science has 
established, and to bridge 
gap with over*entoustestic Pf 
losophy. As he would psobaW 
concede, people do not have a 
universal tendency to agree 
wired fato their brains. 


Brortwett Maddox 





\ • 


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r 




FINANCIAL TIMES WEEKEND MAY 14 /aaav 


15 1994 


WEEKEND FT XXHI 


ARTS 


v * ; .,;>i 

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•I...’" ’• 

-*Ir- S-.N 

-t ;i . ^ 

I A- 

• v ..: %\ 
• * , i . 

‘ r-r 

: : •’:?* 
. • ‘ ■ ' ; fv>, 

• 


’ : - . ‘K** 
‘ * *>\ 


Saleroom/Antony Thorncroft 


S H 

mtasy, 

Oilmen 


keep their 

purses shut 

W hat cm earth are and sold for $365,500, while t 

°i 01 ttrw Jouttae works 
U» glitzy sales of Renoir went in the $ 450,04 
Impressionist $800,000 Dries range 


i' ht'a 


■* Lsr® 


W hat an earth are 
we to make of 
the glitzy sales of 
Impressionist 
and Modem works of art in 
New York this week? Both 
Christie's and Sotheby’s had 
assembled t h ei r finest auctions 
for four years, bursting with 
pa inti Tiff s by Gauguin, Mona* 
Picasso, Lfiger, Mondrian, and 
there was a quiet confidence 

that enthusiastic bidding from 
art-starved mlHionaires would 
announce to the world the end 
of the recession. 

It did not quite work out like 
that There was an audience, 
around 3*500 of New York's fin- 
est, at each evening sale, but 
while Sotheby's could crack 
open the champagne after its 
experience on Wednesday, 
Christie's on Tuesday was left 
groping for excuses. 

"Pre-sale interest suddenly 
ebbed on Monday afternoon” 
says Its expert Michael Find 
lay. “There were no new buy- 
ers; no real strength in the 
mattet”. In contrast Alexander 
Apsis of Sotheby's found that 
lots of different people were 
bidding, and many of them we 
hacL never seen before”. 

While half of Christie’s 76 
lots ware unsold, Sotheby’s dis- 
posed of 50 of its 69. In terms of 
totals and the value of the lots 
sold, the gap was not so great 
Sotheby’s brought in $51.5m 
(2316m) and was 68 per cent 
sold while Christie’s managed 
$50.7m (£34m) and 58 per cent 
As Apsis says “there is a. 
vary fine line between what 
sells and what doesn’t.” He 
should know. Although Sothe- 
by’s secured the highest price 
paid at auction for two years 
when two keen bidders chased 
each other up to a record 
fll-fim for “Lady with a fan”, a 
ravishingly decorative painting 
by Gustav Klimt (which cost 
less than $2m In 1987), Sothe- 
by's sale lust missed being 
eraptityiaL Two kpy jrak&* 
printing of Venice by. Monet 
and a sculpture by Brancusi, 
failed to seH, even though bids 
for each nudged $6m. 

Buyers still have the whip 
band, , and the museum inter- 
ested In the Brancusi and the 
private collectors salivating 
over the Monet know that the 
sellers will be open to post-auc- 
tion offers. Mfehflri Findlay of 
Christie's was also busy deal- 
ing with aftersale enquires. 

Sotheby's reckons it was 
fldifing the better paintings. 
Ibis is debatable. Perhaps the 
key factor was that its auction 
took place 24 hours after that 
at Christie's, time to persuade 
mutani to accept more flexible 
reserves, fa any case Its esti- 
mates bad seemed more cau- 
tious. A Sisley landscape car- 
ried a modest $800,000-1400,000, 


i words 



Anyone wifli a passion for 
music and W-flwffl feel 
Instantly at home with ATC. 

in toe true tradftkm of many 
smafl British companies, we 


- for quality. 

Rat out, we hand-produce 
hardly more than 100 pairs of 
loudspeakers a week. 

The result? NotWng short of 
perfection. 

But don't taka our word for it 
Listen to PucdnL 
Prices bora £1,000 to £20.000. 
(Cal MBS 760661 for more.) 



THE ROYAL SOCIETY OF 
PORTRAIT PAINTERS 


ANNUAL 

EXHIBITION 

12tt*30th May 1994 


Open daily inc. Ihf Bank Holiday 
and Sundays farm 10 am to 5 pm ami 
7 pm on Tuesdays and Thursdays 


THE MALL GALLERIES 

THE HALL (Nr ADMIRALTY ARCH) 
LONDON SW1 


ST. JOSEPH’S 
HOSPICE 

MABE ST. LONDON E84SA 
(Onritf Rat Nol Z 31323) 

Dear Anonymous Friends, 
You tfid not wish your gifts 

to be spoiled by human 
words of thanks, Their 
value Yearns in tbe-untoid 
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We have honoured your 
tTust and always wQL 

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art galleries 

MARLBOnoUQH FUJI ART BAfeemM 
a.W 1 . 071 -e»B 1 S 1 .AWWJHAI«HA. 
worm IMfr*. UrRH 4 th June, 
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ANNUAL EXHIBITION OF 
WATERCOLOURS A DRAWINGS. Mon- 

w, wmaaopm, Tie* am -MOpm. 


F or a start, of 
course, you need to 
be fairly rich. Mrs 
Jackie Rosenfeld, a 
passionate music- 
lover since her early years In 
ballet, is very rich; bid: the is 
also a passionate, practical 
organiser of fund-raising musi- 
cal events. On Tuesday, a few 
months after she received the 
0-BJS. for her services to 
music, the London Philhar- 
monic Orchestra made her 
their first Honorary Life Mem- 
ber. As well they might long 
before her second husband, the 
Hatton Garden . jeweller Ben 
Rosenfold, died 13 years ago, 
she was planning all their 
galas, and over the years she 
has raised more than £7m for 
the LPO. 

Recent reports about the 
straitened arcumstances of the 
Arts Co uncil . AT)d the conse- 
quent starving of same artistic 
endeavours, have generally 
assumed that only corporate 
sponsorship can take op the 
slack. The familiar worries are 
rehearsed: wfil big sponsors be 
leery of in novation if it isn’t 
sexy? Will they interfere with 
artistic policy, when their 
motives have less to do with 
excellence than with maximal 
commercial exposure? 

Private patrons of public 
music are less exigent. In pro- 
grammebooks they get recog- 
nition in small print. Why do 
they do it? 

I went to ask Mrs Rosenfeld, 
whose involvement with music 
is generous and comprehen- 
sive. Her grand flat in St. 
James’s Place, overlooking 
Green Park, accommodates 
any amount of m usio b usmess 
The phone and the fax-ma- 
chine are constantly busy, for 
beyond her LPO commitments 
she is or has been governor or 
director of the South Bank 
itself, of the Royal College of 
Miiaift , the Israel Fhfihannairic, 
the Music Therapy Charity, the 
Mondsee Festival in Austria, 
the near-legendary Prussia 
Cove Seminars for budding vir- 
tuosi She personally sponsors 
triwgip concert s »t*h chamber- 
music series too. 

Why? “To me, it's a great 
privilege to be involved in 
something which you love. It's 
a lot of work; but you see. I’ve 
nothing to . do! I'm not a shop- 


and sold for $365,500, while two 
out of three routine works by 
Renoir went in the $450,000- 
¥600,000 pried range. 

Christie's in contrast 
some impressive single owner 
collections, frnrinflrng seven top 
works by Gauguin, Picasso, 
Vla minck. Braque, etc, owned 
by the Zurich industrialist Jac- 
ques Koerfer, plus a group sold 
by t he financially troubled 
retail magnate Merdhulam Rik- 
lis, but after a good start, with 
the Koerfer Vlaminck: maWng 
$6Am and his Picasso $&27m, 
the sale fell away to nntTimg 
Freshness was a factor. The 
Koerfer paintings did well 
because they , had been hi dden 
away for over SO years, while 
some of the Riklis paintings 

The few collectors 
prepared to pay 
over $3m are 
being very 
selective 


had been offered around pri- 
vately in recent months. There 
also seems to be price resis- 
tance over the $3m Level and 
Christie’s had more expensive 
pictures to dispose c£ 

This suggests that it will be 
a long haul to return to the 
halcyon days of 198680. Just 
four years ago, in a similar 
week of New York auctions, 
Christie’s sold Van Gogh's por- 
trait of Dr (Sachet for a record 
$82J5m and Sotheby's raised 
$286m from a single auction. 

This was because the sale- 
rooms had persuaded rich busi- 
nessmen. in particular the Jap- 
anese, that major 
Impressionist and Mnrfpm art- 
ists were a good investment, 
and provided loans and easy 
terms for buyers. It was a 
primro^e ( path,tp. disaster, and 
there are. many, Monets, Ren- 
oirs, Van Goghs and Picassos 
currently In Tokyo (and Swiss) 
bank vaults with valuations 
wonyingty below their acquisi- 
tion price. One of the more 
interesting paintings an offer 
this week was “Contraste de 
formes” by Ldger, one of a 
series of 12 in which he experi- 
mented with “pure p ainting ”. 
In 1989 one sold for $14.7m: the 
best bid this week for another 
was $2.4 di. 

No new speculative buyers 
are coming forward, and while 
the American economy has 
improved there were fow Euro- 
pean or Asian bidders this 
week. There are probably less 
titan 20 collectors in the world 
prepared to pay $3m or more 
for a painting, and they are 
being very selective. 


O n the South Bank 
tills week, the next- 
to-Iast instalments 
of the Ludan Berio 
festival were mezzo voce and 
secretive: -his, 1981 “inraemo- 
riam” for Cathy Berberian, 
Retimes, and his recent third 
quartet Nottumo, commis- 
sioned by the South Bank with 
the Vienna Konzerthaus. 
Tonight’s final instalment, a 
semi-staged performance of Us 
Cal vino opera La van storia, 
will be noisier. 

Franz Welser-MSst con- 
ducted the London Philhar- 
monic in Berio’s last piece for 
Cathy, the inspired performer 
who was Ms first wife. Requies 
stretches an atmmbwelaelj - 
Berio calls it a “shadow” that 
“describes” a melody - slowly 
and gently through an aque- 
ous texture of muted tremoh 
and floating whispers. The lyr- 
ical gist slips continually from 
one instrument to another, 
hazed or soft-filtered by 
chimes and dulcet marimbas. 
Its shadow-silhouette will 
stand out more when the IPO 
has had more time to play the 
piece In. There are the merest 


T hree boys turn the 
pages of an enchan- 
ted book. As a glow 
starts to emanate 
from inside, the overture 
mma to an end, the lights dim 
and the show begins: The 
Magic Fhae as fairy-tale is at 
least as valid an i nte rpretation 
as any other. 

For the audiences that Opera 
North services on its touring 
around the country, a produc- 
tion of this favourite Mozart 
opera that combines a clear 
tpTKrig of the' story with panto- 
mime ftm is likely to go down 
well. The company's new stag- 
ing by Annabel Arden (best 
known for her work with 
Thtotre de CompUdtd) is a 
modest effort in every sense, 
simple in concept, basic in 
design, but it allows a naive 
enjoyment of the opera. A full 
house at the second perfor- 
mance oh Thursday clearly 
lovBd it 

Among its simple pleasures 
are a comic dragon with a fiery 
red tongue to menace Taurino 
in the opening scene and an 
array of strange, multi- 
coloured, rubbery creatures 
that appear when be plays Us 
ffntR , as if he has strayed into 
a kindergarten extension of 
Jurassic Park. The adult 
aspects of tiie story tend to get 










n. Jacfcte Ro — itfa ld at ho n we not a shopper, not a lunchar, but for the London PWBi a nnonlc Orchestra she Is a sw e et ly reasonable force for the good cm mm 

Acceptable face of patronage 

David Murray meets a celebrated private sponsor of the arts 


per, Tm not a luncher.” In 
London, how many patrons 
operate on a scale like hers: 
maybe three or four others? 
“I think there must be a dozen; 
I’ve never really added th em 

up . . Shu artimtu to tapping 

the same people pretty often 
for support; that has made 
her very sensitive to what 
they will enjoy hearing. For 
fund-raising galas, “bottoms 
on seats” is the bottom 
line. 

I wondered whether that 
makes her a conservative 

brake on progr amming . She 

has persuaded the violist 


Nobuko Imai to leaven her 
forthcoming Hindemith wiw 
with Brahms (for which relief 
much thanks). What about new 
music? “It's not a great inter 
est, but I like Berio, and I like 
Harry Birtwistle.” Later she 
remembers to mention George 
Benjamin too; we agree that he 
is a complete musician, and 
ought to be more prolific than 
he is. 

Apart from, galas, does she 
claim a say in planning the 
LPO’s regular seasons? “Yes, I 
do: a little bit, to a certain 
extent, not very much. And 
there’s no reason for them to 


Shades of 


hints of protesting regret; oth- 
erwise a kind of measured, 
serene melancholy reigns. 

Mahler’s “Resurrection” 
Symphony followed. Hardly a 
response to the Requies; hut in 
the wider festival-context, a 
neat choice after Berio’s Sinfo- 
nia the week before, which 
famously enlists Mahler’s 
scherzo as the running basis 
for its wicked collage of Cheat 
Post-Romantic Snippets. As a 
Mahler performance, it was 
the latest of Welser-H5st’s 
well-planned, narrow-chested, 
■ti ghtly over-anxious assau l ts 
on some post-Romantie peak. 

From the arrival of the solo 
voices, Maxjana Lipovsek’s 
warmly expressive mezzo and 
Felicity Lott’s translucent, art- 
fully fragile soprano, the per- 
formance took wing. Before 


that, the conductor had 
treated the opening movement 
— w hkh all Mahlerians know 
to be a tumult of seismic 
upheavals, piercing laments 
and bursts of sardonic gall - 
as a quick-march with inter- 
esting surprises. The Andante 
and the scherzo were tame, 
under-pointed. But the later 
stages of the symphony 
warmed to a fine blaze, espe- 
cially once the London Phil- 
harmonic Choir stood up; they 
sat for their first quiet entries, 
at palpable cost to the depth of 
their tone. 

On Thursday the Alban Berg 
Quartet played Berio’s Not- 
tumo rather as they had 
played Haydn’s “Sunrise” 
Quartet, op. 76 no. 4: with 
exquisite balance and shading, 
and such cool composure as to 


take any notice of me!” (That 
cannot be quite true.) “But - 1 
do have a little say. Because 
sometimes 1 get feedback from 
our audience: “we don't like 
this, we’d prefer that*. And one 
should listen; they're our pub- 
lic, and they've been loyal to 
us for many years, and if we 
didn't listen it would be very 
foolish.” 

How does Mrs Rosenfeld rate 
Arts Council support against 
private patronage? “The Arts 
Council made a terrible fiasco 
last year [the abortive runoff 
between the major London 
bands]. Very sad, because that 


dilute any latent drama. The 
Nottumo is a highly patterned 
affair. In which distinct kinds 
of material and diction are 
constantly rotated, varied 
rather than developed. A' great 
deal of that is in suppressed 
pianissimo, a-whlsper with 
trills, sul ponticeUo croaks and 
tiny flickering figures, which 
tiie players turned brilliantly. 

For once, Bartdk must have 
been Standing b ehind Berio’S 
shoulder: the Nottumo 
sounded like a natural devel- 
opment from certain move- 
ments in the older composer’s 
later quartets. To spot the kin- 
ship, however, was also to 
notice that Berio’s beantifuUy- 
made piece lacked - in this 
per f ormance, at least - a sense 
of arriving anywhere definite 
in its closing phases, unlike 
anything Bartdk ever com- 
posed. It seemed as if it could 
equally have stopped two min- 
utes sooner, or four, or six, 
without any loss of effect I 
fancied that a more purposeful 
structure might be concealed 
there than we heard. 


User-friendly 

‘Flute’ 


short shrift, although it was an 
a winging idea to have Saras- 
tro’s throne growing out of the 
tree of knowledge. Rae Smith 
was the designer, working (one 
imagines) on a shoe-string. 

There is little sense of the 
production teem agonising at 
-length over the moral implica- 
tions of tins complicated tale. 
By llg big the translation of the 
musical numbers by Jeremy 
Sams the company has ensured 
simply that the story comes 
across clearly and humorously, 
in extremely user-friendly 
Bn gHah. The spoken dialogue 
has been newly translated by 
Arden, not to mention heavily 
cut: a relief, as it is stiffly 

deliverecL 

Opera North is lucky to have 
William Burden back after his 
successful La Boh6me as a per- 
sonable Tamino, free from 
assumtng any false princely 
airs, gfri g in g the tenor’s ramrfn 
BB though tt bac no rtifftantilna 
to it at all. His pint-sized Pam- 


ina, Linda Kitchen, was less 
fortu nate; her voice does not 
always take kindly to the 
broa d, sustained, lyrical style. 
Wiffiam Dazeley works hard to 
be cute as Papageno, too hard 
for my taste, though the audi- 
ence thought otherwise. 

Hulse was a lightweight Queen 
of the Night without Tnuch 
regal authority. John Rath as 
Sarastro had trouble staying in 
tune. 

AH of them were hustled 


David Murray 


along by Andrew Parrott in the 
pit He does not necessarily 
race ahead where the music is 
fast, but almost nothing 
sounded relaxed, able to give 
the drama space in which to 
encourage contemplation, 
onhanre understanding. Scones 
such as Tamino’s arrival at the 
Temple of Wisdom fedt perfunc- 
tory. Although this Magic 
Flute is a Tnfnnr addition, to tb« 
sum of Mozart prod u cti o ns, it 
should win over first-time visi- 
tors to the opera: the cheers at 
the end sounded genuine. 

Richard Fcdrman 

Sponsored by Yorkshire-Tyne 
Tees Television, (fraud Thea- 
tre, Leeds, until June 3, then 
on tour to York, Hull, Notting- 
ham imH Manchester 



any 

can make a 


pile out of art. 


10 enter The Art nhow Ctrl 0203 -421 214 


SUNDAY 22 MAY 4.00pm 
ADELPHI THEATRE Strand, London WC2 

EASTE ROBINSON soprano 
CKknniA ClAMilt dkqo 
mLIP LANGMDGE tenor 
THOMAS ALLEN bass . 

JOHN WALLACE trumpet 

in the 50th anniversary performance of 
Sir Michael Tippett’s oratorio 

A CHILD OF 
OUR TIME 

In the presence of the composer 
and in the location of its first performance 

hi aid of the Save die Children’s 75th Birthday Appeal 
supported by Tarmac Construction Limited 

The B ritte n Sinfbnia, Nicholas Ckobtiry cmductDr 

Crouch Eivi Festival Chorus, Moriey College Cbujiaber Choir 
The Tippett Choir 

Tickets from £10 

BOOKING 071*3444444 


money would have gone to the 
orchestras, which they desper- 
ately needed. It was a complete 
waste of time and money 
Still, it cannot be exciting for 
private patrons to find them- 
selves just filling the gaps in 
state funding? "But if they pick 
up the tab of a concert, they 
than e«n taka their 200 tickets 
and do what they like with 
than. They can fund-raise for 
their pet charity, which is 
what I do again and again 
[Bosnian children are her cur- 
rent concern]. They’re becom- 
ing a sponsor, they're helping 
the arts and they're hnlping a 


charity! It actually works very 
well.” 

Besides, you could always 
fund an orchestral chair, guar- 
anteeing (say) the first bas- 
soon's salary for many yean to 
come: a boon and a relief for 
any beleaguered orchestra. 
“It's rather nice, because then 

you rhrwai f-ha inshnwant. tha t 

you prefer. I love the cello, so I 
funded the cellist; a great 
friend of mhw fonded *ba vio- 
lin. I think it’s a nice idea.” 
Among the plutocrats, Mrs 
Rosenfeld must be a great, 
sweetly reasonable force for 
the good. 


A romantic 


A fter Snoo Wilson's 
portentous margina- 
lia on the puke of 
Windsor, Mold's 
Theatre Clwyd has meatier 
fare: Shaw’s Saint Joan, some 
fatty verbosity and deceptively 
chewy intellectual gristle 
apart, still offers a fair amount 
of theatrical protein. 

The mercifully' streamlined 
production by Gale Edwards, 
distinguished work in Austra- 
lia behind her, is unabashedly 
romantic, not afraid to add red 
lighting or dry ice effects to 
Peter J. Davison’s handsome 
settings. The opening scene’s 
straight rows of breast plates 
that bristle across the stage, 
sent sprawling even tntn the 
stalls by foe squire's contemp- 
tuously clouted steward, pro- 
vide a surreal Image of a 
nation ravaged by war. Sliding 
hangar doors in the austere 
box set give on to giant Jleur de 
iys and a long corridor down 
which the shackled Joan 
clunks towards her trial 
If Shaw, with gadfly evasive 
shallowness, declared Joan to 
be foe first Protestant, this 
production emphasises her sta- 
tus as romantic revolutionary: 
foe idealist who becomes a 
thorn in the side of the new 
establishment, the fundamen- 
talist who embarrasses the 
compromises of power. 

All memorable Joans seize a 
particular aspect of the Maid to 
malm their own. Images Hngmtr 
of Joan Plowright’s warm, 
womanly earthiness; Frances 
de la Tour’s gaw k y, heartbro- 
ken passion; Eileen Atkins’ 
wry knowingness; Angela 
Plaaseuce's vulnerable, whey- 
faced tanarfmimAai At Mold 


the .Maid is Imogen Stubbs, 
who gives us a little-girl Joan, 
the innocent, unwitting Icono- 
clast. A small figure as some 
Joans go, Stubbs excels at com- 
pact, fizzy spitfire energy. 

She bounds on for her first 
entrance like an Enid Blyton 
heroine plus Geontie accent 
Hair shorn, she is suddenly 
boyish at the siege of Orleans, 
hi the trial scene she is a child, 
with a child’s compliance to 
adult authority but also a 
child’s infuriatingly logical 
stubbornness. Her recantation 
reduces her to a whimpering 
little gixi She must avoid the 
danger of sentimentalising the 
role, at foe moment just 
achieved. The reading, already 
touching, will doubtless get 
tougher before the production 
reaches Loudon. 

Shaw's schoolmarmish ten- 
dency to wag a garrulous fore- 
finger and his clumping face- 
tiousness are rare in this play, 
though today foe caricature 
English cleric, Stogumber, 
would be reversed into an anti- 
English En glishman, given our 
mania for obliterating any- 
thing that resembles a native 
culture or tradition. Good sup- 
port from all, notably Peter Jef- 
frey's Inquisitor and Philip 
Quast’s Bastard of Orleans. 
Only Jasper Britton's gratingly 
clownish Dauphin irritates: 
silly walks, funny voices, a 
sub-suburban sit-com accent 
suggest that he shares the fam- 
ily defect of dottiness, like his 
father Charles VI and Ms 
unfortunate nephew Henry VI 
of England. But that is in 
another, and better, play. 

Martin Hoyle 


MMmgdo. ij 

tobf-Mu*, H0SCHH0 


Accademia 

Italian a 

24 Rutland Gate London iw 7 
29th April - 24th July 1994 

Tuesday to Satunby 
10 am - 5.30 pm 
Wednesday 10 am- 8 pm 
Sunday 11 noon- 3.30 pm 

Sunday 15th May: 

2.30 pm -5.30 pm 

Entrance Fee Ccna £ljo 
^formation telephone: 071 j»j 3474 
Neamt untkrpomd: Kmghbfaidgc 

Advance (Ideas tel; 

First Call 073 4979977 


D*ANG£L1 
EDITORS SjJ- 




XX*V W EHKF.Mn FT 


H enry Moore, 
bom in Castle- 
ford in the old 
West Riding in 
1898, was 
iamoqsiy a YorksMremau, 
even though he left his native 
dearth, lor ever as a young 

man. His career and repntation 

may have been made in Lon. 
don and the South, but there 
was not a day in his long life in 

which his every utterance did 
not declare his origins in the 
North. 

HO always acknowledged the 
formative influence upon his 
creative imaginatio n of the 
local landscape sub -con- 
sciously and intuitively, long 
before he ever knew he was to 
be an artist, let alone a sculp- 
tor. There were the medieval 
carvings in the church nearby 
at Methley, the monumental 
outcrops of rock on the moors 
at Adel and the high, gently 
rolling line of the surrounding 
bills against the sky. Moore in 
his maturity would always lift 
his work high into the air, to 
give it thus those limitless pos- 
sibilities of space and scale. 

From his student days he 
worked outside whenever he 
could as he carved his way 
through his college holidays in 
the garden of the Norfolk 
schoolhouse, where his sister 
Mary was headmistress. 
"Sculpture", he said, “is an art 
of the open-air. Daylight, sun- 
light Is necessary to it I would 
rather have a piece of my 
sculpture put in a landscape, 
almost any landscape, than in, 
or on, the most beautiful build- 
ing I know.” His hero, Michel- 
angelo, might well have taka n 
issue with him on the latter 
point, but for Moore it was true 
enoug h , and right 

The surprising thing is only 
that hitherto we have had in 
this country no near-perma- 
nent opportunity to see his 
work as he would have wished 
There have been shows in the 
open-air galore, notably the 
60th birthday retrospective in 
Hyde Park in 1977, and mote 
recently In the Yorkshire 
Sculpture Park itself. The 
orchard and garden at Perry 
Green, Moore’s home in Hert- 
fordshire, also have works dot- 
ted about, just as they were in 
his lifetime, but that was ever 
a working arrangement, with 
work-in-hand put out to be 
seen in. the space available, 
and then away. Only the great 


T o re-choreograph the 
Stravinsky/Balan- 
chine Apollo is rather 
like re-writing Ham- 
let the act of a dolt or a mad 
genius. For all his zany ways 
and interminably prolonged 
adolescence, Michael Clark is 
no dolt Nor does he qualify as 
a mad genius. Rather, in his O, 
in which he does indeed give 
new choreography to Apollo, 
he shows himself a command- 
ing and wonderfully imagina- 
tive creator. At last, say I, he 
has come of age. 

0 is in two parts. In the first, 
the “enfant terrible" still domi- 
nates in the choice of deafen- 
ing, hell-sent rock, hut this din 
accompanies dance of mature 
understanding. At the Royal 
College of Music, Manchester, 
on a stage bare save for six 
doors at the back, Clark 
explores a sequence of long 
adagio phrases. He Is simply 
dressed in a leotard; the move- 
ment stretches out as his body 
unfolds, revelling in the curves 
of those perfect legs and feet, 
with the contraposto of his 
torso a ravishing balance and 
complement. His colleagues - 
three women, one man - fol- 
low discreetly in his footsteps 
(the Clark feet still a marvel of 
the dance world in shape and 
flexibility). There comes a wild 
coda when, dress and dance are 
tatterdemalion, yet the final 
impression is. despite the 


ARTS 



FINANCIAL TIMES WEEKEND MAY 14/MAY. |g j 


Off the Wall/Antony Thoi 


New team 
faces old 



T he Arts Council's 
new team of Lord 
Cowrie, chairman, 
and Mary Alim, sec- 
retary general, went on show 
this week and found itself fee- 
ing the same old problems: 
inadequate funding and the 
intractable question about 
orchestras. 

With the government com- 
mitted to reducing its grant to 
the council by around £250 in 
real teams over the next four 
years, money remains the par- 
amount problem. The coandl 
will lobby hard for more cash, 
bnt knows that the opening of 
the National Lottery floodgate 
next January could, ironically, 
scupper Us chances. 

The council win have the 
task of channelling around 
£10m a month of lottery reve- 
nue Into building projects for 
arts companies. Treasury min- 
isters redeem that this most 
improve the ability of these 
companies to boost their 
incomes, and they win turn a 
deaf ear to pleas for more 
annual subsidy. 

Mary Allen seems to favour 
fewer, but better fended, Arts 
Cotmdl clients. But she prom- 
ised this week a "steady as we 
go" policy, with plenty of 
notice for clients who face a 
chop in their grants. These 
could well Include orchestras, 
although no announcement is 
likely until December when 
the current review of musical 
life in the provinces, under- 
taken with the BBC, reaches 
its conclusion. 

In the meantime the cotmdl 
must And a new music direc- 
tor to replace Ken Baird, just 
one of the victims of the coun- 
cil’s ill-conceived attempt to 
cat London orchestras. 
Favourite Is Anthony Sargent, 
who currently supervises the 
generous arts and music bud- 
get of Birmingham Council. 

* 

Is rock and roll a dying art? 
Given that most of the money- 
making rock artists are now 
aged around 50, why should 
not rode, like the Pre-Raphael- 
ite Brotherhood in art and fin 
de siide decadent poetry in lit- 
erature, be an art form that 
has run its natural course? 

The feet that those old Kra- 
kens, the Rolling Stones, are 
heaving themselves together 
for one more tour of the Amer- 
ican stadia this summer seems 
to confirm the feet They are 
revivalists of a moribund 
musical form, like Fink Floyd 
and fee Ragles, now also both 
playing the US. 

The clincher is the question: 
which pop stars under 30 
could currently (ill Wembley 
Stadium? None. In feet no pop 
concerts are planned there this 


problems 



*0 v8J wHh Points', 1968-70 by Henry Moore, happily ensconced In the Deer Park of Bratton HaH, near Wakefield 


A monumental landscape 

William Packer welcomes a new home for Henry Moore’s work 


Sheep Piece in the field next 
door was ever consciously and 
permanently set into the land- 
scape. 

Nothing could be more 
appropriate, therefore, than 
that the Yorkshire Sculpture 
Park, of which Henry Moore 
was the first patron, and the 
Henry Moore Foundation 
should have negotiated the 
long-term use of what was the 
Deer Park of Bretton HaH, for 
the siting of a significant num- 
ber of bis works. The Wake- 
field Metropolitan District 
Council, which embraces Cas- 


tleford, owned this land, 
some 96 acres, since the late 
1970s, and runs it as a country 
parte. 

The fear might have been 
that this would be some kind 
of cultural takeover, with art 
being rammed down people's 
throats who only want a bit of 
fresh air and a nice walk. 
Nothing could be further from 
the truth. The people of West 
Yorkshire have long grown 
used to the idea of sculpture in 
the landscape, and the York- 
shire Sculpture Part: itself is 
one of the most popular recre- 


ational resorts in the north of 
England. And the installation 
is beautifully judged, with its 
16 pieces set discreetly to punc- 
tuate and inform the land- 
scape. In all it is the happiest 
of collaborations between 
national, cultural and local 
interests. Sven the sponsor. 
Hickson International, is local, 
with factory in Castleford and 
offices in Leeds, w h ere Moore 
first went to art school. 

The principle is that the 
Henry Moore Foundation, 
which owns the works, will 
renew the display piecemeal 


over the years, with each fresh 
work being carefully consid- 
ered in its particular site. As it 
is. we walk westwards up the 
valley towards the house, with 
the lake below and. the slope of 
the hill above. Each piece 
stands alone, yet we are teased 
forward by the hint of another 
beyond the trees - here a fig- 
ure reclining magnificently 
below us in its grassy hollow, 
there another high above and 
majestic against the sky. Far 
ahead the “Large Two Forms", 
Stonehenge in scale as in 
effect, holds the great open 


Enfants terribles dance on 

Clement Crisp on works by Michael Clark and Matthew Bourne 

iiac blast of the acoompani- for the Three Muses as for him- f ■ 1 aggart is a faggot, land Fling is anything to 

t, very pure. sell), and its lovely logic. I Jean Brodie - sit on by, there is a case aga: 

it the point of O is its sec- His own performance is I my face. Gum is a Bourne for aggravated 

part, an interpretation of superlatively good: noble, -1. dork. Of such biting witless vandalism. 


maniac blast of the accompani- 
ment, very pure. 

But the point of 0 is its sec- 
ond part, an interpretation of 
Apollo. It was with this score, 
in its white, formally serene 
measures, that Balanchine 
found himself, and found the 
way forward for classical ballet 
in our century. I hope it is not 
too fanciful to think something 
of the same for Michael dark. 

The stage is dominated by a 
large reflecting box-structure, 
diagonally placed. Incident 
flashes off its sides - Leto giv- 
ing birth to Apollo; the muses’ 
entry - then as the music 
announces Apollo’s manhood, 
dark is brilliantly seen in its 
illuminated interior. White- 
suited, he awakens, stretches. 
Emerging from this altar- 
womb - its opening a thrilling 
coup - he dances. The action is 
sufficiently pinned into Stra- 
vinsky's music (and momen- 
tarily - the famous finger- 
touch with Terpsichore - into 
Balanchine’s text) to make dra- 
matic sense. But what thrills 
eye and mind - and heart - is 
the grace of Clark’s movement 
language: its linear virtues, its 
imagination (he writes as well 


for the Three Muses as for him- 
self), and its lovely logic. 

His own performance is 
superlatively good: noble, 
carved In light, Apollonian in 
its formal order. He demon- 
strates what Virgil Thomson, 
writing about musical crafts- 
manship, called the “twin priv- 
ileges: freedom and responsibil- 
ity”. So Clark has at last found 
the freedom to use bis own 
dance-style folly - the style 
proposed in the first part of 0 
- and shown a responsibility 
to his score and to the exqui- 
site rightness of his own phy- 
sique as a symbol of Apollo- 
nian grace. 

I have in the past hated what 
Clark has done because unwor- 
thy of his talents. I salute this 
beautiful and cogent work of 
art, which honours its score 
and its creator/interpreter. The 
final moments, when a mir- 
rored stage reflects multiple 
images of Clark and his cast, is 
a true apotheosis of his talent. 
This half of O is as beautiful 
grid significant as Balanchine ’s 
Apollo . No greater praise. 


T aggart is a faggot. 
Jean Brodie - sit on 
my face. Gum is a 
dak. Of such biting 
wit are the graffiti on the loo- 
doors that are the initial set- 
ting for Highland Fling, a view 
of balletic romanticism now 
on offer from Adventures in 
Motion Pictures. Even before 
the action begins, the trick has 
been played, the joke has run 
its miserable course. 

Matthew Bourne, AMP’s 
director and choreographer, 
has clearly not heard Noel 
Coward’s dictum; “Never come 
out of the same trap”. With 
his version of Nutcracker two 
years ago. Bourne made an 
amusing revision of a dance 
cliche. With Highland Fling be 
has turned to another I9th 
century text - La Sylphide - 
and has even cast a wandering 
eye at Giselle. A programme 
note warns us that next year 
he will made advances on 
Suxm Lake. Is there time to 
find some Brussels directive 
that will stop tins game before 
it gets out of hand? If High- 


land Fling is anything to go 
by, there is a case against 
Bonnie for aggravated and 
witless vandalism. 

The piece is an unabashed 
stinker. Bourne’s procedure is 
to transfer the story to the 
Glasgow of today. James is a 
pill-popping lout; other charac- 
ters are crude and tartaned 
cyphers, folly armed with cans 
of beer; the sylphide is a cross 
between Vampire the Blood- 
sucker and a tipsy drag-queen. 
The second act’s sylphs look 
like manic dirty laundry, peo- 
ple fell down, rash in an out of 
loos, and shreds of the old nar- 
rative are inexpertly woven 
into a crude inversion of 
romanticism, a subject on 
which I think Bourne needs 
some coaching. I watched two 
laboured and interminable 
acts with lowered spirits and 
rising gorge. 

David Garforth’s fine record- 
ing of Lovenskjold’s Sylphide 
score was played far too 


centre of the park, pulling all 
together. And all around the 
trees themselves turn to shim- 
mering sculpture in the sun- 
light, the folds and fell of the 
ground itself come into high 
relief, and the sheep munch 
away, rubbing themselves 
against the bronze, dozing In 
the shade. 

Hairy Moore in Bretton Coun- 
try Park: Yorkshire Sculpture 
Park, Bretton Hall, near 
Wakefield, from May 12; spon- 
sored by Hickson Interna- 
tional. 


loudly. The cast romped In a 
flailing, family-charades man- 
ner, and In a culminating 
moment of charm, James takes 
a pair of garden shears, cats 
off the sylph's wings, and we 
are treated to a bloody (bloody 
indeed) farewell. 

Of choreographic or dra- 
matic interest I saw no trace. 
The original taut narrative is 
knocked senseless. Bourne, 
lacking that eye for the ridicu- 
lous which might make the 
Joke work. The incorporation 
of elements from Giselle sug- 
gests desperation rather than 
any feeling for Romantic 
dance. Performances are uni- 
formly dire, vulgar, as the cast 
bang about the tiny stage of 
the Baylis Theatre. Haw 
rewarding to learn from the 
programme that BBC TV plans 
to film this undertaking. 
Another bead on the corpora- I 
tion's rosary of mediocre 
dance. 

O can be seen in Sheffield, 
Oxford, Brighton, London 
(Brtxtan Academy), and Edin- 
burgh during the next two 
months. Highland Fhng is at 
the Baylis Theatre until May 


summer. 




Springsteen, Prince, mKJL' 
MkbMl Jackson tonoTS 
30) - who could ts to m wZ: 
Key are staying at hameSt 

hwfoey are doubtful of tK 

putting power. 

wm* for W«* 
biey, which can nay a m 

concert Also bad news k feu 

Sony, the entertainment cob. 
glomerate, is pouring 

into an adternatire vrem 

the Milton Keyset IW 
which It part owns. Not 
prtslngiy It now books it, 

stars, like Springsteen hi urn 

»hn» nHux A. mJT' 


The die is cast The Ban] 
Opera House, Covent Garda. 

has committed itself to doi]M 

fa l»7 for essential rebuild, 
fog work which win, hi far 
years, bring its backsfen 
fecilitfes from fheiSth to fa 
21st century. 

By an odd colhcldeaa 
English Notional Opera at the 
Coliseum also expects to de* 

In the summer of 1997 for , 
£38m facelift Both cmnpodci 
want to take advantage of fa 
lottery money that will be 
splashing around then, 
although Co vent Garden b 
eyeing the Millennium fud 
while ENO fancies the ask 
distributed through fee Arts 
Council. 

Opera lovers need not 
despair. Both companies ban 
bit upon the nearby Theajn 
Royal, Drury Lane, as » 
temporary home and there aft 
already discussions reralvfag 
round the ENO popping in fat 
a year, and the Opera Rook 
fitting it for the remainder of 
its three years in the wilder 
ness. The problem has boa 
the rental asked by owners 
Stoll-Moss, and what ta do \i 
with the current production 

there, Miss Saigon. 

Bnt suddenly there is a wr 
player in the game. Apollo Lei- 
sure looks likely to acquire tie 
derelict Lyceum, almost two- 
rite Drury Lane. For around 
£7m, it is suggested, the thea- 
tre could be restored to ik 
late-i&th century glory and 
could become an effective 
2,000 plus seater which would 
suit Covent Garden very wett 
Or it could house any musks! 
displaced from Drury Lane by 
the opera companies. Ike 
glimmerings of a deal an 
forming, and one in which flu 
revitalised Arts Council ts 
playing an active rote. 

Chess NO 1021: 1 Nxf7? Nrf72 
Bgfi Ng3 3 Bxf? (3 Rxri&t Nsfi] 
Ne2+ wins. A grandmaster 
shouldn't need advice -to spot 
such a simple trap. 


The Official London Theatre Guide 


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Sunset Boulevard Ota 

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EN 

May 17 1 19 1 21 1 24 ) 26 1 28 

O 

June 3 1 9 at 7.00pm 

Tickets £8-£42_50 


Box Office 071 836 31 61 

New Production 

English National Opera 
at Hie London Coliseum 


Mozart 


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THE R O Y A L O P E R A 

MIDLAND BANK 

PROMS 

23-28 MAY 

TICKETS 


£11 

ON THE DAY 


MOSES IN EGYP1 

i.V'.OS; N EG" TO! 

R O S S I N I 


FEDORA 

G f O R D A N O 


THE MARRIAGE 
OF FIGARO 

MOZART 




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SPECS 










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MIDLAND 


:CiAt proms information une 071-212 9234 . 



QUEEN ELIZABETH HALL WEDNESDAY 18 MAY 7.45 pm 

LONDON MOZART PLAYERS 

® Matthias Bamert conductor 
Mldhala Hetri recorder 

HAYDN Symphony No.44 is E min Trailer’ 
TELEMANN Suite in A min for treble recorder 
SAMMA&TI NI Co ncerto la C for sopranino recorder 
STRAUSS Metamorphosen 

£8-518 BOX OFFICE/CC 071-928 8800 
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Uson-yBuO* Btreny Movie. ^ 

H11 Weather. 

12.1B FA Cup Hnel Grandstand. 

IrrtoA^byDasmond Lynam fun 
WemHey Staflum. 1220 Team 
News; A report from the squads’ 
hotels. 1220 Cup BuM-Up: A look 

bade at the dramas and goals of tMs 

year's FA Cup. 1.00 News. 1.0S Cun 
B uW-U p. 220 Meat the Teams; M 
Insktar's guide to the big game Sna- 
ups. 225 Pre-Match BuW-Up: The 

flrat appearance of the teams on the 

pitch. 3.00 FA Cup Rnat Chelsea v 

Manchester (inked. Fid live cova^ 
■ge. In the event of extra time, sub- 
sequent programmes are subject to 

chanoo. 

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Retfonei News and Sport 
AnT Rx It ST Jimmy makes more 

draams coma true. 

The Now Adventures of Stgwr- 
man. Lax liahor creates an wS 

done of the Man of Steel nd order* 
It to destroy the genuine article. 

Dean Can and John Shea star. 
MoreeambeandWIeac Bring Me 
Sunshine. New series. Rrat of three 

programmes to which comedtan Ban 
Eton pays tribute to the fun-fifed 
career of Britain's beet-loved double 
act -A* the 10th vmivarsary of Eric’s 
death approaches, guest stars who 
worted with the duo. Including 
Qlanrta Jackson. Cfiff Ftichcvd, Diana 
Rlgg and John Thaw, fbndfy remem- 
ber thdr comic style and timing. 
That's Ufa! 

News and Sport; Weather. 

Fine Bind Oats. Bruce W 8 ta 
makes Ms bigwerean debut aa a 
yuppie businessman who gets fixed 
up «rith Kbit Basinger in a bid to 
impress clients and roHoagues at an 
Important business drear - a date 
that goes from bad to worse when 
aha gets hopelessly chunk. Btake 
Edvards’ romantic comedy, with 
John Larroquette and WRUam Dan- 
late (1987). 

Ma tc h of the Day. Desmond Lynam 
Introduces highlights aMMsaftsr- 
noon'S FA Cup Final from WOmbfay. 
Hbic Thras O’Ctook High. A school 
hero squares up to a newly arrived 
bufly whoae reputation has preceded 
him. Teen (frame, starring Gassy 
SJemaszto and Anne Ryan (1987). 


BBC2 


S^pSSfc***^- pm Rmc PM of toa 

1-40 Tfrna with Betjeman. The late Poe* 
tafla to AustraHn canto 
Barry Humphries. 

a *®° Scnri hy. Insight Into the work of the 
PMamentay oommrttaes. 

**°° Woodland Web. Film fbfowfrig the 
^wfa pment of the country's broad- 
™od forests. 

*-** Hfcre Mr Smith Goes to Washing- 
ton. A naive young senator taddes 
corruption and greed when Ms plan 
to buffd a boys' camp b thwarted by 
land developers. PoOtieal satire, atar- 
rfrig James Stewart (1939). 

Ru^jy Unton. Jtfian Tutt Infroduces 
action from the Middesax Seirans, 
fha tradMond finale to the season. 

72B News and Sport; Weather. 

■728 Captain Calypso. England cricket 
captain Michael Atherton looks back 
on Ms team’s performance dising 

the recant Caribbean Test aeries, 

from a humttating defeat in Trinidad 
to triumph In Bridgetown, Jamaica. 
HIghflghts Include Brian Lara’s Ms- 
txaric innings fri Antigua, and axdu- 

ahre footage of players off the field, 
as they cope with constant press 
attention and Basing heat 

SJ» Hne Cut. New series. Michael Apt- 
ad's moving account of the pro-de- 
mocracy nxwamsnt In commuMat. 
China, wHch cufrninated In the stu- 
- dent tsststoga of 1981 The pro- 
gramme proffleo key figunas in the 
Tiananmen Square raMee and fea- 
tures interviews with feeding (Ssah 
dents who cfiscuae what eflect the 
Moody government crackdown has 
had on people's bade desire for 

HU 0 QOCTI 

1020 Haw I Qot News for You. 

Comedtan Jack Dee and Labour MP 
Diane Abbott concrete to another 
round of the comedy news quiz. 
1020 O efr ri eld. Jerry Is farced to took 
. rater a stranger's dog. wMa Elaine 
and George make an unwe lc om e 
decovery about their reieSortsMp. 
10 l 88 Later With Jooto Hotond. 

1120 Washington Behind Cloaad Doors. 

Part one of the (frama depicting cor- 
ruption and Intrigue fri the American 
pofrtical system, frirough a ruthless 
senator's rise to the presidency. 
Jason Robarda stars. 


SATURDAY 


200 GMTV. 888 GIMIW 5. 1U0 The FTV Ctart 
Shew. I280«m Opantag Shot 

120 im News; Weather. 

128 London Today; Weather. 

1.10 Movies, Games and Videos. The 
latest computer games on offer, 
ktdudngTtob, and Pfrifaafl Dreams. 

120 IffiA BaefratbA Alton Byrdfntro- 
duoas lha game of the weak. 

220 Cartoon Thnau 

220 A Trtoutets George PappSRf: The . 
A-Team. George Peppard stars as 
Tha A-TeonTs leader, Cotonal John 
Hamtoai Smith in the first ever - 
feature length - episode. The team 
help a joumafiat find her cofleague. 

428 ON Haws and Reaulte; Vtoathar. 

820 London Today; Weather. 

020 Rufit ays. GariM queationm a star Jfrn 
Bowan praaidaa and guest Kavln 
Kermy throws tor charity bn another 
edition of the darte-based qute. 

8 20 Baywafroh. Matt fafls victim to at 
elaborate con site rescuing abeau- 
tlW toonagor from drowning. Steph- 
ante becomes deeper Involved wtth 
co e etpu art Scott Daniels. 

028 Stras in Their Eyes. New sates. 
Matthew Kely hosts ee the first five 
soundaBcss of 1994 take the stage, 
with Impersonations Jhdudng Tom 
Jones, Kate Bush and Wttfia Natoon. 

720 The Brian Conley Show. 

8.18 YouVe Been ft eiwd 

028 ITN News; Weather. 

m H | nnilnn tjf ■ ■ rfr 

P ePo Txnaon n wuw. 

•20 Teggert A series of Bhoctings tar- 
rorfses Glasgow, Just as one-time Mt 
man Jfrnmy Cetto Is releeaad from a 
long stretch - b he up to Me old 
tricks? Taggart who was at school 
with Jfrnmy, isn’t so sure. Feature- 
length episode of tha gritty police 
drama, starring Mark McManus. 
James M acpheraon. bn Hogg, Clara 
Grogan, John Satthouse and Har riet 
Buchan. 


CHANNEL4 


tow 


BJOO 4-T8 on Maw. S20 

“ L 11-00 Wt„ - 

On: Deaf People cf Gumatk 1220 


MMvAVL 

Tim World Sport iijjo WeM^eteaSa C3ra- 
tenge .1200 " - - 

pm Bombay 


REGIONS 


28 LOMMN 


AT TH 8 


120 


720 


1020 


1128 


Secret of the Sahara. Part two. A 
renowned American a t r he en l ntf a t 
finds a manuscript proving the oxb- 
france of the legendary TaHng 
Mountain. Tefiy Savbaa stars; ITN 


11 . 


«2B The Big E; fTN News Hesdtoee. 
820 The Naw Music. 

4.18 BPM. 

820 Hot Wheaia. 


■Ftos A Latter to Three Wfcree. A 
trio of women recahe word that a 
fttand has run off with one of thair 
husbands. Comedy, starring Joanne 
Crsln, Khk Doughs, Ann Sothem 
and Unda Darnel (1949). 

FRnfe The Ghost and hhs Mter. A 
lonely widow b romanced by the 

spirit of a dead sea captain, and 

graduaSy succumbs to the charms 
of her spectral admirer. Fbitasy, 
starring Gene Tierney. Rax Harrison, 
George Sanders and Edna Beat 
0947). 

rare wsB Lhtia Wand. Anfrnatton 
about an island destroyed by mod- 
em technology. 

Braekalda. 

Right to Reply. Viewers' reports 
and jde aa about recent TV pro- 
12 Bi miles. 

A Week In PoMcsl In sw wem took 
at rirv dopmsnb over the past 
seven days; News Summery. 

Hie Sexual Imperative. The basics 
of sax. Investigating what can be 
learned from the behaviour of animal 
species around the worid. The open- 
ing programme axamfnes why soma 
wfkffifo devote their entire Ives to 
reproducing, whBa others never 
breed at M. 

NYPD Blue. A murder wftnees b 
targeted by the hit manwhokBed 
her boyfriend. Laua beleves she b 
batofl toOowedL 

Itfrr a Girt. Through a series of 
comic sketches and monologues, 
Imafda Staunton c o m ment s on -the 
health care women can expect from 
a largely male medical profession. 
Featuring Jo Brand, Ante Dobson, 
Claire Rayner, There Hfrd, PhytSa 
Logan and Robert Llewellyn. 

FOnr Little Munlare. Black comedy 
charting the re la tionship between 
bfd-back photographer Btoit Gould 
and cheerful woMd-be girlfriend 
Marcia Ftodd, sat agalrtst the back- 
drop of a violent city where mug- 
ghgs. murder and rape are 
a ocepted as part of e ver y day We. 
Cfrracted by Alan Aridn, and co-star^ 
ring Vincent Gardenia, EXzabeth Wl- 
son and Donald Sutherland (1971). 


1220 Moriw, Qdtm end Vtdsos. 18 Angfa 
New. 1.10 Cartoon Time. L 2 B The Muntare 
Today- 125 World Cts> M d Rone. 228 Grew 
Fx pa cfrrtfa n t- (TVM 1074) 800 fin gte New aid 
Span 828 Angb Weather, tlsb Late Sings «w 
Biuee. (1972) 


1220 COPS. 108 Sorter New. 1-40 Sal tha 
World. 2.10 The Greeteet American Hera. (1981) 
4JOO &SMtstan of Wresting. 488 Barter New 
end weather 880 Cartoon Tfrna. 1128 Destination 
(TVM 1987) 


1280 America's Top 10. 1JB CenM Non 1.10 
The Minsters Today. 140 Movies, Semes and 
Videos. 205 Cartoon Time. 218 WCW WoricMde 
Wraetihg. 250 The FW! &jy. 248 MacQyver. 200 
Central Maws 585 Cartoon TTma. 8 JS 6 Local 
Westhee. lias CAT Squad: StaBang Darker. (TVM 
1S8Q 


1230 Spat -UB osmpian Haadhwi no Teb- 
fioo. L40 For tha (jm of Mbs. (I960} 9S0 Car 
toon. 280 Sal ths World. 100 Superetm of 
wmak«. 820 Grampian Haedbiae 588 Gramptei 
New Review. US Grampian Headlines. 1126 
Deednedon America. (IM4 1007) 


1220 COPS. 125 Grenada Horn 1J0 Sd te 
World. 210 The (freaaat American Hera. (1981) 
420 Su p er store of Wresting. 428 (kanade Nam 
820 Cartoon Tfrna. 1128 Dastfrwtion Amarics. 
(TVM 1067) - 
HTtt 

1280 World Cup Hto at Fane. 125 HIV New*. 
1.10 SaB the World. 120 Bemey. (1071) 215 Mov- 
ies. Garnee and Wteoa. 245 The A-Taetn. 820 
HTV New- 210 Cartoon Time. BJSB K7V Weather. 
1128 Da a tfriatlo n America. (TVM 1867) 

1280 Held. 126 Meriden Nam. 1.10 SM the 
World. 240 Beat or British Moto rs port . 210 Tha 
A-Team. 4.10 The Musw Today. 520 Meriden 
Nam. 210 Cartoon Time. 1125 Crime Story. 

1220 Extra Tima. 126 Scotland Today. 1.10 Taie- 
flos. 120 FaoRaae Na Fade. 210 On Hre. (TVM 
1987) 285 Tha A-Team. 520 SooOend Totey 210 
Cartoon Tfrna i 825 ScoUlah Weethar. 1120 N& 

1280 Movies, Games end Videos. 128 Tyne Tear 
News. 1.10 The Murtsters Today. 128 Zone. 225 
Tha H akwunte of Alaska. (1973) 250 Knign Rlter. 
425 Tyne Tees Saturday 5.10 Cartoon Tima. 


1280 Blockbusters. 125 UTV Live New 1.10 Beet 
Of British. 140 Movies. Gores and Videos. 210 
Cartoon Tima. 216 Valay of tha QwngL (1066) 
420 Superstars of Wresting. 520 UTV Uvn Farty 
Evening Naw 625 Canon Time. 286 UTV Uva 
New 1125 Destination America. (TVM 1987) 


1.10 Harman’s Hoad. 

1.40 Naked City. 

228 Beavts end Butt-Head. 
Ut True or Fates. 


1220 Movies. Gores and Mdaos. 126 Weteooun- 
try Nora 1.10 W Onliribtl. 210 Cory On 
CtetL (1666) 250 The A-Team. 520 Weetoountjy 
Nam. 1128 DeOfration Amarioa. (TVM 1867) 


1280 Movies. & 


Nam 210 The Muratos Today. 285 Zotrau 200 
Tha Haktounte of Alaska. (1973) 220 KnigM Rkter. 
425 Odenter Ham 210 Catoon Tire. 


SUNDAY 


1 BBC1 


BBC2 


LWT 


CHANNEL4 


REGIONS 



.■rS-iff 

. -vrt 

nl*. 

• rw" 

; "I I- 
• - 



720 Johnson end Friend s . 740 Heydays. 020 
Btood and Honay. 218 Bratefwt vritfi Rat 215 
Heart and SouL 1020 Saa Hoof 1020 Denied tha 
B to 2 1120 Second Chance. 1120 Totes from tha 
Map Room.. 

1200 Country I~ls on Steafrqr- 
1X28 Weather for tha Week Ahead. 
1230 Nows. 

1238 On the Record. 

1.80 EastEndara. 

280 Ftot: Around tha World in 80 Dram. 
. j, Leybh period adventure about • Vlo- 
tortan gtottamon .anetbb vbet whp. 

. wager they can drcumavigate the 
gktoe in 80 days. DevfrJ Nhren store 

230 Heateiciief. Sarah Gram and 
■Chown Judge the cufi- 
i of oontestents from 
and Sussex 


Songs of PrefneL Pam Rhodes 
introduces viewers' favourite hymns 
from Coventry Caihacfrai, inducting 
How (boot Thou Art and Thera ta a 

Redeemer. 

laat of the Summer Wine. Specia l 
apbode of the comedy, shown again 
as ■ hftxita to the late Mbhael Ald- 
ridg* 

Pie kt the Sky. The forces of law 
and order are alerted when conser- 
vationists resort to vendafism fri thofr 
c ar npelgn against a new motorway. 
Ftaher orders. Crabbo to Investigate 
the protestors - an assignment com- 
pHcetod when the beleaguered 
detective-cwn-reBtaurateurrecog- 
nbee a number of fenriBar ton. 
Richard Ofifftfw, Maggb Stead and 
M a lcolm Sinclair star. Last In aeries. 
M a v ra and We ath er . 

Fairly. John Paul beoomes Increas- 
ingly upset at his plants' constant 
arguing and deckles to ran away 
trj&m home with beet friend Fate. 
Bany Ward stare. 


200 


215 Open Unfvosfry. 210 Pnom* Foods BW. 
928 Simon and Ihs Witch. 240 Bevel's American 
Talas. 1008 The Movie Gama 1020 Grangs ML 
1028 FCTT. 1120 A Ltafy Led. 1146 The O Zone. 
1820 Around WsehiMK. 

1230 Sunday Grandstand. Introduced by 
Sue Baker. 1235 Women's Qym- 
nartkac The Rwop ann Champlon- 
ship 2 1.15 W raalk i g. The British 
Chonpionet^n. 1^5 Cricket Gla- 
morgan v Yorkshire In the Sunday 
. League. 2.10 Motor Redng: The 
Monaco Grand ftfre In Monts Carla 
'■ " ‘<35 Rac2ng: The Irteh 2.000 Guln- 
em 4>W Cricket Tfrnae ettoject to 
change. Su b se q uent pl u g ta rs nee 
may run lata. 

238 The Natural Worid. The hazards 
faced by African wldebeest during 
their annual 500-mle dreutar migra- 
tion around Tanzania's Seranged 
National Park. 

7.18 The Money Programme. With cute 
to tha armed fbrcafr at home and 
i ncreaa l n fl competition abroad, b 
Britain's position as one of the 
world's leadbig arms manufactures 
under threat? Dick Evans, chief 
- executive of British Aerospace, and 
Lord Walnatock, chafcm a n of QEC, 
debate whether the future of the 
country's defence companies Inevi- 
tably Dos in Eteope. 

7J55 La DHIannee. French and Engtoh 
obsessions. Inducing the appeal of 
rational rugby, tha mystique of Edth 
Pfaf, and the British royal famiy. 

MB Jotei Seeatons 1 Uwly Stories. 
Handsome Tad Has Ha Day, the 
story of a gym coach’s final show- 
down with a crazed geography 


200 GMTV. S2S The Utttoat Hobo. miO Gotoon 
TTma. 1218 Link. 1020 Surxlay Morning with 
Secombe. 1200 Mteting Wcnhfrx. 1820 Suiday 
Morning wflh Ssoombe 1220 pm CTOeeWk; Lon- 

jtnjl , . 

ooo >>MOi(r. 

1.00 ITN News; Weedier. . 

1.10 The Judy Ftonigan Debefra Live 
dacuarion on the maki poMcri and 
moral beuaa of lha day- 

200 World C 15 } Heroes and MBafria. 
Offcast took at tha bate and worst 
momen ts of Worid Cup action. 

200 TheSundey Match - Uvsl Lhra 
coverage of MBhoalTs bid to reach 
tha Prenrierelrip via the Foottiell 
League pfay-offe. 

1230 The London P rogrammsb Ttewor 
PhWps examinee the growth of 
frxlacipine and vloianca In tha 


&JO 


7.00 


218 


11-30 


1JI8 

1.10 


Everyman. Conchxfing part In the 
BgM of figures suggesting n> to half 
of al Efrfitali marriages Ml, the pro- 
gramme frivsetigstes why wedded 
Mas b apparentiy so hard to 
achieve. Has the rim of feminism 
enoouagsd women to assert their 
Independence, or ta the Ideal of a 
We-tong txx rsnftne nt simply bmprac- 
deal In tha modam worid? 
nfrvc Mariowe. Dowt-efr-heal 
private aye PMp Mariowa b Itfrad 
by a young gfrl to find her ntbalng 
brother. James Gamer, Gayle Kunnl- 
cutt and Brace Lee star (1969). 


208 Wa te r g ate The story of America's 
notorious pofWca! scandal continues 
wfch an Investigation into how presi- 
dent Nbcon end hteadvteere 
attempted to cover i^> WNte House 
links rath the braak-tn at the Demo- 
crat Party headquarters. 

288 Grand Mu Murray Walter presents 
NgMtfite of the Monaco Grand Pifrt 
from Monte Carla 

1021 Movtodfrome. New series. 

Introduction to the first of tonics 
two tens. 

1248 FWie The Ancfromede Strain. A 

sstsBKs crashes near a remote des- 
ert town inbashfria a lethal extrater- 
restrial organis m . ThriSar. starring 
ArtfKT Mi and David Weyne (1071). 

1248 Mavtedronwu Alex Cox Introduces 
tha second ffim. 

1288 Flnr Fiend Without a Face. SF 

honor, starring Marshall Thompson 
(1957). 


1200 

10 l 8 O 


1120 

11.10 

11.10 


London Today; Weather. 

ITN Newe; Weather. 

Through the Keyhole. Chris Tsr- 
rant Eve Potato and Alan Coran by 
to guess the mystery owners of 

,,, 1,1 ulm hnmne 

cwoomy noirpoo. 

Ora priee l Srepri a el 
The DaraBng Place. Cbab learns 
aha b prayrt as a result of tha 
rape, and a finandafiy deae rate 
Mstth awr praparaa to many Roag 
Starring Tracy Whftwai and Janas 
Fox. 

Ths Knock. Tommy and Eddto 
hII i huI unwakxxns attention fri Jer- 
sey, whfie Barry and Andreotti doss 
fri on Mufivany. Enzo SquIBno Jrr 
and Stave Touesatot star. 

Spitting Imaga 

Tha H o u se of Windsor. Naw rate. 
Comedy set behfrxf the scenes of 
Buddntfiam Palace, f b fio w tog ths 
work of tiie Royal Family's staff. 
Lesfie PhMps and Wteran Claries 
star. 

TTN News; Weather. 

| Hfi ■ |ti ■ i 

LXM buUfl TRrCHuTWs - 

The South Bank Show. Profte of 
Flench artist Christian BokwnM. 
who ussB fights, shadows and old 
s napshot s to comment on He's 
most profo u nd Mtejecte. 


7 JOO 


1218 


14)0 M arried 
126 Cue the 1 
230 Rlnc TM by Oornbet Comic crime 
caper, starring John MBs and Don- 
ald Ptoasanca (197(9. 

44)8 Snooker. The Erop ea n 
SLOB Dlnfrig fri Rratoe. 

UNI 


206 Forty Monfrng. 246 Tha Odyssey. 1216 
Saved by the Bte. 1045 H seNda. 1148 UUs 
Houre on fin Pnlda 1245 pm 8 orf Potatoes. 

1.18 Fftre Al About Ere. An ageir^ act- 
rass takes on a ruthteas younger 
woman Intent on stealng her pres- 
tige. Oscar wfrrtng bbek comedy, 
starring Bette Dnb aid Anns Bn- 
tar (1950). 

Sptefcound Hound. 

British Tsom Torerts. Action from 
the man's samHfaiab aa Chris Daley 
2 nd partner Jaremy Botas dash rativ 
Ancfrew Foster and James Fok. 

Hte People Wtfi Talc. Aaurgeon'a 
unorthodoK methods arouaa Ns ool- 
lasgust* jsteousy. Comedy drama, 
starring Cary Grant and Jeanne 
Crafri (1851). 

Tha Cosby Show. 

Encounters. Pr oNee rt people who 
five near active volcanoes, and often 
depend on the rasouces they pro- 
vfcte for awvivaL The flfrn locusas on 
the inhabitants of Jam, Mowing the 
vBagars In Ngasfrf, at the foot of 
Mount Bromo, and the men of Idm, 
who brave dangerous cuntiUuta to 
work on nelghlxxifrig Mount Sen 
(figging out aiRtiiur dapoatia fri Its 
crater. 

Speak Out Concerned mamba s of 
the public prese nt filmed reports on 
currant bausa The bat programme 
features a men tracking down those 
responsible tor aqppl^ng tickets to 
touts, and a father determined to 
sxpoee tiie da nger s of computer 
pornography altar hb afre-yaarokf 
da ughter was raped by a 13-year- 
old software enthusiast. 

BMh RKas. Why woman are shun- 
ning h o sp i ta l b a se d chfidairth In 
favour of natural or alternative meth- 
od 2 Ffimmatar Tamarin Day-Lewta 
risks the W eat Country, where a fifth 
of mothers choose home birth, and 
meets a woman planning her own 
happy event on a remote hi bids. 
Writer Bel Mooney Investigates why 
conventional madldne b aflenatfrig 
more and more In Its pursuit of 
bfrthlng efficiency. 

Hm: Storing Rtvsky. Comedy, 
starring Mratte Alley as a bored 
ho u s ewif e who s mbari ra on an affak 
- only to hove hor lover do In tha 
throes of passion. With B 8 PuDman 
and Canto Fbhar (1990). ' 

FBrc Ths CoU Summer of 1963. 
Prisoners, freed on the day of 
Stahl's death, set out to rob atraln- 
toad of gold. Ruaatan poltlcal 
efrana, sta lling Votary Prtyemykhov . 
(1997). 


B2B Ths Naw Soooby Doo Itovtos. 1280 Tha 
LMost Hotxx 1228 Arpla Neva. 220 Wnhd: 
Dead or Aim. 280 Dfriossura. 320 The Long 
Stax- (1804) 280 The VBsgo Show. 200 Angta 
News on Sunday 11.10 Angta WstSwr. 

288 Ths New Soooby Doo Movise. 1280 Godov- 
a's Day. 1258 Border Nmm 220 COnfasnCS 
Ftoport 280 Wld Worid of the East. 820 Beloved 
InfldsL (lOSfl) 215 Ooranadon Si rest 215 Border 


025 Ths New Scoody Doo Movfm 1220 Csnbri 
M — qw sfc. 1255 Central Nora 250 Vs Yoir 
Stout 826 Take 12 250 The Oaibte Mtech - 
Uvsl 218 W the Town. 245 Zoo Ufa with Jack 
Horn. 210 Cartoon Tfrna 215 Canute Naso 
11.10 Local Vtoattor. 


225 Ths New Scooby Doo Itovtas. 1250 Godan- 
a*B Diary. 1255 Gfronpte n Ikattei— 250 Contor- 
•ncs Report 220 Scotsport 215 Grampian 
Haatenea 11.10 Gramptai WOteher. 


84)0 


228 The Nov Scooby Doo tdovtos. 1226 (hroada 
an Sunday. 1255 Granada Nam 250 Uvsl Ths 
World* Grateate Sturts. 250 The Ganada Match - 
Uvte 215 Coronation Stoat 215 Grands Nam 

225 The New Scooby Doo Movies. 1285 Tho 
Uttisst Hobo. 1255 HIV Nam 250 HTV Nsw- 
. 250 Worid CW> Hte of Feme. 245 A Ffre fri 
y. (1978) 520 Joumeymai. 650 O sfie ma ra 
• . 215 KTV Norn 11.10 HIV 



225 The New Scooby Doo Modes. 1220 Seven 
Days. 1250 MoMan News. 250 The Plar. 225 
The Listings. 220 The Absent Mfrvtod Piofeesnr. 
(1081) 420 U g h wsy to Heaven. 215 Otnossure. 
246 Jack Ptnay*a Dos— ns. 215 Mmlrlon News. 


225 The New Soooby Doo Motesa. 1220 Skooeh. 
1255 Scottand Today. 250 Contaeno s Report. 
220 S uJtaxxL 215 Scottate Tod^ 220 Scottish 
Passport 11.10 Scottish Weather. 11.15 Don't 
Look Down. 

Tlte Ttek 

225 The New Scooby Doo Moris*. 1225 Tyn# 
Teas News w e ek . 1225 Tyne Tern Nam 250 
I B te w ayto Heaven. 2JB Voyage ta tin Bottom of 
tin Sea. (1961) 42D Father DowOng investigates. 
250 Tyne Teee Weekend 


104)0 


11«40 


226 Ths New Scooby Doo Movies. 1220 Gaden- 
hg TTmo. 1255 UTV Uvs News 850 Pok* Sfac. 
210 Od Yeser. (1957) 445 ktedar. She Wrote. 
240 Gtanroa. 210 W Bn ses. 215 UTV Uve Early 
Eventog Nem 11.10 UTV LfrrsNerrs 


226 The New Scooby Doo Movies. 1220 Weei- 
counby Update. 1226 Westcountry News. 250 Sal 
the World 220 Wextcouwy Cameae. 225 Ftshxn 
to Peyton Flax. (1961) 450 Murder, She Wrote. 
246 Wld West Country. 215 Weetcomfry News. 

285 Ths NSW Soooby Doo Movies. 1225 Tha 
Uttieat Hobd 1250 Cteender Nsws. 250 Htesmy 
to Heaven. 256 Voyage to the Bottom of tho See. 
(1981) 450 FMher Dowfrxi frrv atW g teai . 250 Cte- 
ender N a m and W eather 71.10 tocal Weat h er. 


RADIO 


SATURDAY 


SUNDAY 


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nc RADIO 8 

260 Open Mvertefie Rwxriag 
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750 Record Review. 250 
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MndOhaalWb Symphony Ne 

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fiteati 1 DelgNM Raofrfrod 


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1220 Close. 


210 The Faming Week. 
280 Payer lor the Dry. 
750 Today. 


206 Sport on 4. 
280 Braakmqr. 

1000 Loose Bute. 
tldOO The Week frt 


churches buR by Wan. 
750SteurdteNtoMTl 
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aaoMoteobiMtod ' 

250 Ton to Tan 

lOLOONom 

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MUL 

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1250 News. 

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1246 594)0000. 

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150 News. 

1.10 Any QuoaHoite? 

250 Any Antwsra? 071-580 
4444 Ptrone-to jwponaa 


l PtoyhotaK' 

Son Wfttan by Stephen 
Spepder and atanfrig Dated 


340 Tha PuMo Son of s Ptetle 
Man. 

345 Preteoos Conrirttonn. 

450 Whatlf? Tha Cuban 
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-550Pfieon4. 

240 Mbteoos Knprobteta. 

200 News and Sports. 

228 Week Erring. 

280 The Loctar Hoorn 
7 JD Ketakloaoapa Feteua Ths 
imoortten future of London 


208 Dirty ThcUa. 

■10 Ths Bntedta 
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and WHtttearr. 

1155 Spocta Aategnment 
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1250 Mddra BdUon. ' 
11.16 Sportscea. 

154 Sport on Rve. 

250 Sports Report. 
2O5S0t4>8te 
720 Setixdey Bftkxv 
288 Out TTte Week. 

1006 Wemetiooel Bctong. 
1150 Extra 
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200 Up Al Ntght 


BBC far Europe ran be 

r a c e fr isd to aosttra Wasps 
on MstSwn Warn 648 KHZ 


250 Morgsmnagazln. 220 
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225 Book Choice. 220 People 
and Prtetios. 24X> Worid N ews. 
SOS Words of rath. 215 A 
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1215 World Brief. 1280 
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1145 M Wts g ana gsten. 1250 
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150 Vfarid Nam. 159 Woods 
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200 BBC Bntah. 650 Hsuto 
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216 Deeatopment 94. 280 
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150 World and Brititei News. 
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450 No— desk. 450 BBC 
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fto vtew In Goman 


750 Don Maclean. 205 
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Sunday- 1200 Desmond 
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200 Atan DefL 450 Young 
Musician 1994. 450 Sing 


2101 

220 Monfng Hm Broken 
750 Norm 
7.10 Suxlm Papers 
7.16 On You- FOm. 

740 8ustac 

250 Sfr John WtaonCBE. 


Beck from HoRdsy, by Ray 
Garton and Atan Sknpson 
1048 8 tateng lor a Uvtng. 


Chaster. 750 Hktard Baker. 
280 Sondey Htef Hour. 250 
Abn Keith. 1050 Do Not 
Foreaka Ms 1256 Steve 
Madden 250 Atoc Loeter. 


280 Open UtaMttety: 
Senfatics and Vlaitel Art. 658 
WMbK 750 Sacred wd 


9l10 : 

216 Letter from Amarics 
220 Monfng Sendee. 

1215 The Archers Omnfeua. 
11-15 Mteftnwws 
1146 The Now Europeans 
1215 Desert Maid Dfecs 
150 Ths Worid TTte Weekend. 
250 Qflntatere'GuMtion Tims 


Brim Km's Sunday Momkig. 
1215 Music Mteters. A nmr 
Laonerd D etrsa 


150 The Sundq' Concart 
Bstehnvan.25BUoMted 
Feativaf 1992 Daring, Byrd 
Gtobcns Itagss Lupa *50 
Royte Urepod Phfcamonlc 
Orchestra. Mediates Maw. 
S c h u mann. D ateta w nSAS 

I Itelrlflfa UltejAA *te fk Lina 

hwfiig nwfm, nura 

etaewaa ha btognphy of 
Karetab Grahams 520 
Baettovan 720 Sundmr Pley; 
Mr Wroe^Vfrgku. Adaptation 
of Jane Rogos* novel 226 
Motec In Our Tims Pfara, 

Kotih GMord, Todd Brief. 1020 
Choir Works Bach. 1220 


Junior. 

320 Fide of tits Weak 

2 WA n tey«te 

600 Bom to be 102 


RADIO 4 

250 News 


050 SbcffCkx* News 
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280 OrfmawMs Rrat of a 

sbc-psrt thribr, by Dtano 

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T50 fri Buainaas 

720 A Good Heal 

200 (R4 Wbat If? The Cutan 

UreflsCdtes 

850 (LW) Opai Unhertety. 

230 (Bf) Cause Catabra 

250 (pM) The Nteutte Htetay 

Proysmme. 

220 (B4 Coeting the Both. 
How pcfifiobns eelect wfiloh 
re sea r ch profcote to oaiport. 

1050 Nam 

1215 Hsnooclfs Htef Hour. 


11.15 In i 
1145 Seeds af Fatih. 
1250 News ate Weethar. 
1288 Shipping FbreceeL 
1248 fiJN) As BBC World 
8 ervlcs 

1248 CJoee. - 


BSC RADIO 5 

555 HotRaatete 

230 Hie Dra ri tfqqt Progra mme. 

950 Abstter StmrarfS Suvtey. 

1200 Mdctey Etfrtton 

12.15 Tha Big Byts 

154 Suxtey Sport 

750 News Bctrs. 

758 Btock to the Future. 

850 Ths Utantee Preview. 
1056 Special Assfryvnant 
1228 Crime Detec 
1150 Mght Bos 
1250NghtoteL 
250 Up Al Mght 


BBC far Burope «M b* 
r ecteved fri weatanrt .Empfr 
on Mateuai Were 548 kKZ 
H83ifi St fcem Ihnm QMft 
200 News and fostures In 
German. 250 C omposer Of 
Tha Month. 750 Worid and 
British News 7.16 Latter from 
Amatos 750 Jazz For The 
Asfcfrig. 200 World Nows 215 


Crossing tho Border. 850 Rom 
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256 Words of Faith. 216 Roy 
an Record. 1050 Worid News 
and Business Review. 1215 
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1150 Nam 8 unmary; Science 
to Action 1150 BBC Eng«sh. 
1145 Newa and Press Review 
In German. 1250 Nawedask. 
1280 Ths Joto Dusi Stow. 
150 Neva Sunrnery; Play of 
the Week: Bfitto 8 pML 250 
Newshour. 3.00 News 
Summary; Extraordfriary and 
Plenipotentiary. 350 Anythfeig 
Goes 450 Worid News 4.15 
BBC Engtah. 480 Nem ate 
fea&nsto German 550 Worid 
and British News 215 BBC 
Engtah. 250 Worid Nem and 
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Dm2 230 Nows and faatiroe 
In OamiBL 250 Sounds ate 
Sweat Afrt. 280 Bjrope Today. 
950 Worid News 959 Wortta 
af Mh 216 Al fce Wbriffs 8 
Foatbal Pitch. 950 Jkz Scorn. 
1200 Newetow. 1150 Worid 
News and Busfrwss Review. 
11.15 Start Sny. 1150 Uttar 
from Amarics 1145 Sport* 
Roundup, 1250 N e a r edee K . 
1250 Extraonfinwy and 
P hrfipotan B aty. 150 Worid and 
British Naas 1.15 A Step Too 
F 8 r. 150 In Prtem af Goa 200 
Nmm Surynay; Mind end 
Body. 245 Crossing the 
Bolder. 350 N— detao 850 
Oompoea of ths Month. 450 
Neaadee k . 450 BBC Elfish. 
448 Pnimagszfri. 


CHESS 


Chess is a non-verbal game, 
but chatting to friends between 
moves used to be a pleas ant 
and accepted relaxation during 
playing »«inng which might 
lest four or five hours. You 
could discuss games in prog- 
ress in a general way, although 
it was understood that you 
should not seek or receive spe- 
cific advice about your own 


brought in no-talking rules 
which even caught Kasparov 
at Linares this year. He was 
annoy ed when Ids rival, Kar- 
pov, escaped from a poor post 
tkm, grumbled to another GM 
in the corridor and was warned 
formally by the arbiter. 

No 1021 


In international tourna- 
ments, the lavatory was a 
favourite discussion centre and 
a venue for chess journalists 
needing rapid annotations. 
Najdorf, the Pobsh-Argentinian 
world title candidate, would 
hasten there after almost every 
move, greet colleagues with 
the rhetorical "Wie stehe ich?" 
then explain his strategy in 

voluble, broken German. 

Those friendly days are past 
One turning point was the 1968 
Dubai Olympics where England 
led the USSR with, a few 
rounds to go. When their Span- 
ish opponents openly discussed 
the games with the USSR 
trainers, the English were 
psyched into errors and spoilt 
thsir of the gold med- 

als. Than there were allega- 
tions in several continental 
and US opens that east Euro- 
peans were playing as teams, 
not only with advice during 
play but by throwing games. 

Recently the PGA, and many 
international tournaments. 



Sahovic ▼ Botvixmifc, Belgrade 
1969. was a case where words 
affected the result Botvinnik 
had set a trap but aa Sahovic 
(White, to move) stretched out 
his band to play 1 Nxf7 expect- 
ing Nxf7 2 Bg6, Botvinnik's fek 
low Soviet Ewfim Gefler, said 
loudly: “Oh, you’re the clever 
one.” 

Sahovic chang ed his move to 
l Rhi, they agreed a draw - 
and the finious ex-worid cham- 
pion never forgave Geller. 

What happens after 1 NxF7? 

Solution Page XXIV 

Leonard Barden 



Here is a hand j shall never 
forget I was playing rubber 
bridge with Derek Rimfogton: 
N 

* J864 

V A 9 3 

♦ 6 

*98653 
W £ 

49752 4 AQ 

f 7 6 5 2 VK10 84 

+ J10 82 ♦ A Q 

#7 * A K J 10 2 

S 

f K 10 3 

f QJ 

♦ K975 43 

*Q4 

North-South were vulnerable 
when 1 dealt as East and 
opened with two clubs. If 
South passes, my partner says 
two diamonds. I re-bid two no- 
trumps - showing a balanced 
23-24 points - and West passes. 
Arthur a diamond lead, with the 
chib queen dropping, I will col- 
lect right tricks, possibly tHua, 
if the daffem-H falters. 

That is not what happened. 
South, in spate af adverse vul- 


nerability, bid two dfamonds. 
You ask: “After West and 
North passed, what did you re- 
bid?" But West did not pass - 
he doubled. Brilliant. He knew 
1 would not pass if my hand 
was not suitable, and game 
was unlikely unless my hand 

Was rtiefcHfniHnmally fif rm ig. 

I was happy to pass and 
West led the spade two. I took 
with my ace, cashed the chib 
king and switched to spade 
queen - I would like to ruft 
Declarer took with king and 
continued with the 10 to the 
knave. I ruffed with my dia- 
mond queen and cashed my 
dub ace. I continued with the 
10, demanding a heart return. 
This was ruffed and over- 
ruffed; dummy's ace took the 
seven of hearts ^ the dia- 
mond six returned. I took my 
ace, the heart king and 
led my dub knave, allowing 
my partner to maim ana more 
ruff. That was 800 points, much 
better than 70 below. 

E.P.C. Cotter 


CROSSWORD 


No. 8,453 Set by ONEPHELE 

A prise of a dearie PeUkan S utivaflii 800 ftn m t ai n pen, inscribed with the 
winner's «ma fat fibs first correct idution opened and. five runner-up 
prizes of £35 Pelflnm vouchers. Solutions by Wednesday Hay 25. marked 
Crossword 8,453 on Hip envelope, to the Financial Times, Number One 
Southwark Bridge, London SEl 9HL. Solution od Saturday May 28. 



ACROSS 

1 Take name of evangelist 
between two pages (44) 

5 Legendary place for a student 
in a county (6) 

9 French painter endlessly 
embraced by God, aa is 

10 centre brings nothing 

back for one in 200 (6) 

U Old rally to promote wycliff- 


and piano don't 
(otherwise Abo) 


vintner (64) 

18 Fly study? Go solo without 
car teat back at start of year 

22 S-Ld man partly or audibly 
Hack? (6) 

23 Rate correction, without 
doubt, which is valuable (8) 

24 Stature, first to last, of an 
octave (6) 

25 Bogus source of fuel is scan- 


26 Entice 




aristocrat into 


tdsbopcic (6) 

27 Network dub for American 
football (8) 

Solution 8,452 


DOWN 

1 Youngster concealing cov- 
er-up in person (6) 

2 Hide copper between com- 
mander enri lieutenant (6) 

3 Legendary witch in most of 
Welsh counties (6) 

4 Legendary organisation 
where negotiations take 
place? (6£) 

8 Countryman makes most of 
disgusting drink (8) 

7 Legendary lover altered call 
note (8) 

8 Love and money in particular 
are poison (8) 

18 Legendary ruler's family with 
enclosure at old city (4,6) 

15 Predfl e ction for Impotence (8) 

16 Saint sur ro un ded with sort of 
instrument (8) 

17 Cooked meat chip's definitely 
important (8) 

19 Artificial tm-Rnghsli nympho- 
maniac (3-3) 

20 Smoker in train (6) 

21 Legendary wizard or falcon 
( 8 ) 


Solution 8,442 



WINNERS 8,442: C. Mercer, Barley, Herts; Mrs EL Burrows. DM 
Hunstanton, Norfolk: T.S. Moore, London NW5; R. PeretaLCtaharo! 
North Carolina, USA: EOte StannagB, Robin flood's Bay, N. York- 
shire; T. Wheatcroft, London SWB. 








r 


XXVI WEEKEND FT 


FINANCIAL TIMES WEEKEND MAY 14/MAY 15 1994 


We are. of course, 
all deeply 
Impressed by the 
decision of the Con- 
servatives to 
abstain from politi- 
cal debate in toe 
Immediate after- 
math of the death of 
John Smith HE P. 
However, I suspect that the late 
Labour leader would have pointed 
ont that the Conservative party had 
more to gain than Labour from 
such an absence of debate. 

U is not the least of the many 
ironies surrounding Smith's sudden 
death, that it came at a time when 
he had at Last found an issue with 
which be could harry the govern- 
ment into panic. 

Do sot believe everything that is 
said by way of eulogy, until last 
week the Labour Leader had 
become increasingly criticised by 


Simply too embarrassed to own up 


Similarly the Oeparment of 
Health tikes to defend its policy of 
Care in the Community on the 
grounds that paranoid 


The present government’s hypocrisy will give its opponents an easy time, says Dominic Lawson 


his own backbenchers for Ms seem- 
ing inability to create trouble for 
the government, rather than 
merely sit back and watch the con- 
servatives fight among themselves. 

But, in his relentless harrying of 
the government’s conduct in the 
House of Commons, as it secretly 
condoned the talking-out of the dis- 
abled persons bill, Smith had 
returned to his element 

The facts are simple enough. The 
MU, sponsored by backbenchers of 
all parties, was designed to make it 
compulsory for all buildings and 
workplaces to be easily accessible 
to the disabled. 


The government had discovered 
that this measure, which it affected 
not to oppose, would cost many bit 
lions of pounds to implement. 
Therefore, Nicholas Scott, Minister 
for the Disabled, gave authority to 
his civil servants to assist Conser- 
vative backbenchers with the draft- 
ing of a myriad of blocking amend- 
ments, which eventually destroyed 
tfaefaOL 

For reasons which remain 
nuclear, or axe all too clear, 
depending on your view of the 
man, Scott told the House of Com- 
mons that the government had no 
port in this fairly mundane piece of 


sabotage. Only after the debate was 
over, and the government got its 
wicked way, did Scott admit to toe 
subterfuge and apologise for mis- 
leading the HwiBftr 

A bit late, that, for the disabled, 
although one could imagine that 
some of them - In the manner 
described by Dam cm Runyon in the 
Lemon Drop Kid - had become so 
angry that they miraculously rose 
from their wheelchairs. 

The problem for Scott is that 
while the cost of the measure 
proposed was clearly unacceptable, 
it was politically Incorrect for a 
minister for toe disabled to say so. 


Better to pretend that the 
government was not opposed to the 
measure, and let apparently 
maverick Tory MPs carry the 
political odirun of playing Scrooge 
to the handicapped "ytninns. 

This form of hypocrisy is, 
unfortunately, entirely 
characteristic of the current 
government Even when it is 
promulgating measures which 
rightly seek to reduce public 
spending, it insists that it is doing 
so for reasons of beneficence. 

The ChHd Support Agency, for 
example, should properly be called 
the Exchequer Support Agency, 


The government noticed that social 
security payment to single mothers 
had got out of hand, and decided 
that the only way of evading those 
demands was to chase fathers for 
the money - even if those fathers 
bad previously discharged their 
financial responsibilities by a 
one-off payment through an agreed 
court settlement. 

This revenue-driven policy was 
defended by toe government on the 
spurious grounds of social 
engineering, as if it was any 
bnsiness of toe state to interfere to 
agreed court settlements between a 
man and wife. 


nicer time wandering about the 
streets, rather than beta* locked op 
in secure accommodation. 

No health minister has ever had 
toe guts to say. “We must save 
money in the National Health 
Service and dosing down asyln^ 
Is a lesser evil than dosing down 
even more hospitals.” 

For as long as toe government is 
too embarrassed to admit to its 
motives - which, I repeat, are not 
bad ones - the fob of the 
Opposition will be made joyfully 
simple. 

John Smith’s successor wiU \acn 
a wonderful time. 





(f 


. it f-f 


B**"*'** 



Its ° fi nc " 


to 

(MC* 1 ' estors 
lrt¥C 


Dominic Lawson is editor of The. 


Private View /Christian Tyler 

A chairman’s 


moonlight 


sonatas 





Mini ” •: 


IP 



i 




i nm 

i 



- 




m 

m 

• 'vy'i 
V 


A mateur pianists 
may gnash their 
teeth in envy at 
the Yorkshire 
accountant who, 
while head of a large British 
engineering company, played 
the Grieg concerto with the 
Royal Philharmonic Orchestra 
at London's Festival Hafl. 

They should take comfort 
instead. For, says Sir Trevor 
Holdsworth - he is now chair- 
man of National Power - busi- 
ness is a lot less difficult and 
frightening than preparing and 
performing a concerto. 

When at home in Chelsea, 
Sir Trevor practises on his 'A' 
model Steinway for at least 
half an hour before breakfast 
and leaves for work at 8.30. 
“Pianistic jogging,” he rails It 
- a fixed routine of scales and 
arpeggios to flex the fingers, 
wrists and arms. 

1 asked him. if the secret was 
knowing how to practise. 

“Yes, itfs discipline. As peo- 
ple get alder they say: ‘Now 
I’ve got time, Tm going to take 
up the piano.' There's no way 
they're ever going to be able to 
do it You realise how much is 
built in by instinct and the 
discipline you need, you've got 
over as a child when it was 
still interesting. Trying to do 
that intellectually at 60 must 
be almost impossible.'' 

Why did you keep going? 
“You can't escape it” 

Did you think of it as an 
investment for your old age? 

“Er . , . yes. In the sense that 
it was a lovely interest to have 
outside business. Also you 
don’t actually get worse as you 
get older whereas in practi- 
cally everything else, you do. 
I've probably still got a musi- 
cal handicap of minus four 
where my golfing friends are 
struggling.” 

Far from deteriorating, pia- 
nists usually improve with age: 
like the late Artur Rubinstein 
whom Sir Trevor used to meet 
regularly in tbe 1970s when 
they both stayed at the Savoy. 
’•Rubinstein was inclined to be 
mischievous and say you 
shouldn't practise for more 
than two hours - it's a waste 
of time ” 

Apart from the Grieg. Sir 
Trevor has performed the 


Schumann concerto (also in A 
minor), Mozart's K453 in G, 
K488 in A and K595 In B flat, 
and given recitals of Chopin, 
Debussy and others. 

He was as modest as only a 
serious amateur can be: 
laconic, discreet reflective and 
good-humoured. But his sen- 
tences tended to die uncom- 
pleted and sometimes he 
knocked on the table while 

talking as if to drum jjp 

thoughts. In Who's Who his 
recreations are simply 
described as “music, theatre". 

He started to play at the age 
of five and was forced by the 
grammar school to drop his 
favourite subject, science, 
because be wanted to take 
muse in the sixth form. Why 
did he not make a career of it? 

“1 think actually 1 was very 
good at theory, at harmony, 
counterpoint, figured bass - 
lovely! - which is pure learn- 


Sir Trevor 
Holdsworth, is a 
captain of 
industry . . . and a 
concert pianist 


jug. and yet probably tell short 
of the final perfection, which is 
pure sound, which is instinc- 
tive." 

You are not the complete 
musician? 

“Well, I might fail short 
because.. .it is too intellectual. 
Yes. I can memorise, by rules 
rather than by sound I always 
slightly worry when 1 play in 
public. I know it absolutely 
perfectly. I could write it out I 
could tell you the whole har- 
monic structure, which I feel 
sometimes is not quite..." He 
left tbe suggestion banging. 

Unlike the musical children 
of the suburban middle classes, 
young Trevor was not pushed 
His father was a bookie. Sir 
Trevor called it turf 
accountant 

“My parents were very York- 
shire, very down to earth," he 
said. “They didn't think it was 
a career lor a boy at all As 
soon as it started getting seri- 


ous they thought “nunm ’ 

They were probably right, 
actually. If there Is any doubt, 
n»«n you shouldn’t be a musi- 
cian. I think they felt there 
was a doubt" 

And you suspected yourself 
you would never reach tbe top? 

“Yeah. I didn’t fi-nd myself 
being very upset when the 
answer was no.” 

Let me imagine the scene, I 
said* Bradford boy... practising 
secretly at night . . . (“No, no," 
be laughed) ... father comes up 
with a strap... says 'Get off 
that bloody piano (“Yes, yes") 
before 1 give you a right 
thrashing’. "No, no. They were 
very proud of me really. 1 was 
turned out to play and they 
bought a small grand for me." 

Hfs real mother died sud- 
denly when be was only eight 
and he was brought up by a 
stepmother, Intelligent and 
determined, but not interested 
in the arts. Did he think his 
ability came from Ms mother? 

“My real mother? Yes. I do. 
Because I just sense she obvi- 
ously liked singing, very much 
- not too serious, sort of Gil- 
bert and Sullivan level, but 
very keen. Yes, I can remem- 
ber that” 

I thought l heard an echo of 
this later when I asked Sir Tre- 
vor who his favourite pianists 
were. He named Ashkenazy. 
Brendel, Horowitz (especially 
playing Scarlatti), then added: 

“The piano’s quite difficult I 
almost think the voice and vio- 
lin are more musical. I can be 
moved by them mare easily. 
Maybe when you're listening 
to a piano you’re always think- 
ing about how ft’s done." 

Did you keep going in mem- 
ory of her? 

“No, not consciously. But I 
often think that if she’d been 
around she probably would 
have been much more encour- 
aging." 

You don't feel thwarted? 

“I don’t actually.” He almost 
whispered. “No, not realty. I 
got involved with the other 
things so much it became a 
marvellous hobby and 1 kept it 
going wherever I was. what- 
ever I was doing:" 

So after school, and the war 
still on, Trevor Holdsworth 
joined Raw Vinson, Greaves & 



MHofto wood 


Mitchell, chartered accoun- 
tants. 

A two-year interlude with 
the British Forces Network as 
a “staff pianist" broadened his 
taste to encompass jazz and 
light music. Later, he wrote 
popular music for television. 

He spent 10 years with 
Bo water, the paper makers, . 
then 25 with GKN, turning a 
fading manufacturer of nuts 
and bolts into a motor supplier 
with a world dominance in 
front-wheel drives. He became 
president of the Confederation 
of British Industry. He is direc- 
tor or chairman of three small 
companies, one medium-sized 
(Allied Colloids, makers of 
water-absorbent polymers) and 
two large: National Power and 
the Prudential. 

ffls wife, Patricia Ridler, con- 
nived at his double life: she 
was a repertory actress who 
played the violin. She died last 
year, also suddenly, of septi- 
caemia and Sir Trevor has 
taken up her place on the 
board of the National Youth 
Theatre. There are three sons, 
all in business. 

What, £ asked, are the 
rewards of playing the piano? 

“That you can have a paral- 
lel interest" 

But stampcoOecting is a par- 
allel interest 

“Music is the ultimate, 1 
think ... pure sound. It’s far 
deeper and got an emotional 
involvement as welL It’s got 
everything." 

Are you an emotional type? 

“Yes, I think so. Really, 
quite." Then, sotto voce: “I sup- 
pose if s controlled. Yes. Yes.” 

You’ve spent all your life 
with businessmen. Are they 
stunted in this department? 


"Well l find a lot of them are 
really quite interested in it..." 
But his tone suggested other- 
wise. 

Do you feel different? 

“Not consciously, no” He 
whistled as if thinking whether 
to chang n Ms TnTnfl ; but didn’t 

Do you find business cre- 
ative? 

“Yes I do, actually. I regard 
it as vmy creative when you 
get it right Marvellously cre- 
ative." 

Does the piano teach you 


useful things? 

He toyed with the idea, then 
said: “I've always been very 
good to business on concepts 
and strategy and that sort of 
thinking . Whether that is a 
sort of sonata form... Good 
music is all about starting with 
something and developing it, 
to a satisfactory form. There 
might be some spin-off 
between the two there. Proba- 
bly is” 

Or perhaps you are a hard- 
headed businessman who 


approaches music the same 
way, which is why you never 
became a professional? 

“That would be a description 
hard to pin on me. I get it 
right, perhaps, more often than 
I get it wrong, but not from 
being hard-headed.” 

People call you laid-back. 
What does that mean? 

“Well, that I don't appear to 
be hard-beaded and thrusting: 
Actually, there's a sort of illu- 
sion about business, that ifs 
all action-oriented. There's a 


feeling you should be rushing : 

around, taking dedsdoos, bang. 4 

bang. That’s a mistaken 
impression." 

Sir Trevor refuses business • 
breakfasts. Had he stack to >. 
that rule? 

“I’ve hardly broken it, ever. I <> 
gave up City lunches as well 
for a time." * 

Perhaps this is the musical v 
connection -- that your attitude 
to business is more reflective? 

“Yes. H is, actually. Proba- 1 
bty." - 

It’s toe music that matters, > 
not the notes? 

Tm much more interested 
in the objective. Hum you can 3 , 
fill in the piece. Until I talked 
to you today I hadn't actually 0 
tried to formalise it” 

Have you discovered useful ■■ 
things about yourself at tbe ? 
keyboard? 

He whistled and pondered. * 
“The one thing that I’ve found . 
...that when Fm doing it Tm 
not thinking about anything 
else. That's the one thing 
that’s all-absorbing. Yea. When > 
Pm boflding up to a conceit, 1 y 
work very hard. I'm always P 
very nervous. And yet, appear- 
ing In public for other titfap 
...the CBI for two years... Pm 
totally in control 
“I still want..." He knocked * 
at the table. “Yes, I still like a <•' 
challenge, rd like to be aide to - : r 
do it a little easier. Yes, ifs -" 
that competitive spirit again,” 

Are you going to say that s ': 
running a business is a piece of 
cake by comparison with work- 
ing up a concerto? . *“ 

“Yeah, It is. After all, we get 
away with murder, don't we? I uu 
mean you're not on test every a 
time, to business you get away * 
with being very slack, or h 
sloppy. You're not being tested & 
every day, are you?” 






.model:-. 



£ 




tiBctrtteld. 


**4— J, .-»- 


All the signs are 


tic. •- 


that now is the time 


Major in his bunker 


to invest in Japan. 


vfcfeo.-’: . 
toksi.r: ? .... 
5^4-c: ; . . 

?®*tn{rr. 
^a; : - p a «. . 

- 


ai’tjSi-* You have to 

7*****^: admire John 

m Major's insou- 

fiance. He is 
yffiV tig tbe prime min- 

? ister of Britain, 

and has made a 
Pig’s ear of it. 
is he despon- 
dent? Not an 
your life. He is getting quite 
bolshie, as witnessed by his 
recent declaration, outside 10 
Downing Street, that if any 
usurpers from his own party 
had a mind to topple him, 
there he would be, togged up 
and waiting - ready to repel 
them. 

) ou can judge the perilous- 
ness or Major’s position by the 
fart that virtually his only sup- 
porter in the media is dottv 
Wcodruw Wyatt. 

Then? can be no danger in 
calling Wyatt dotty, given the 
edat wuu which he prods and 
pun *“; e ?. those “round him - 
even fellow columnists on The 
Times. On Tuesday, Wyatt 
accused poor old Smoggie, YVU* 
Rws-Mogg, of making a 
daft suggestion" - replacing 
? s ., pri “ e minister with 
.ii.hael Heseltine and appoint- 
mg Major foreign secretary. 
...S 1 “Wo* newspapers, col- 
tonmste do not swipe at each 
other uke that. They treat each 
other respectfully, with a vrin- 
len snulo or a nod; there is 
certainly no ruderyT 
So warned was I by Wyatt’s 


Michael Thompson-Noel 


latest encomium on John 
Major's behalf that I rocked up 
to Downing Street to see Major 
myself, as 1 do occasionally. 
These visits are always jolty. 
We enjoy a large supper of 
bacon, chops, eggs, tomatoes, 
mushrooms and fried bread. 
And then l try to persuade 
Major to walk the plank - to 
quit gracefully, and silently, 
for the good of the country. 

He wasn’t there. But the 
visit was not wasted, for I 
came to hear of the extreme 
measures being taken by the 
PM to turn 10 Downing Street 
into a fortress. 

My informant was a cove 
named Mqjor Julian Summer- 
bee, allegedly loaned by the 
army to help the prime minis- 
ter dig himself in. Readers of a 
literary bent may Imagine 
there to be similarities 
between Major J ulian S ummer - 
bee. whom I met at 10 Downing 
Street, and the major in John 
le Carry's latest novel. The 
Night Manager - Major Corko- 
ran, assistant to le Carry’s 
arms dealer, Dicky Roper. Per- 
haps there are similarities, 
though that is not something 
on which l could comment. 

When I encountered him. 
Major Summerbee was smok- 
ing a Turkish cigarette and 
studying various lists. 

“Hello, love," he said. “You 


seem forlorn and lost” 

“Am I?" I riposted. “I am 
looking for the prime minis- 
ter." 

“Not here, sweetheart," said 
Summerbee. “HO ’coptered off 
an hour ago. Probably some- 
thing and no thing. " 

“So what do you do?" I 
asked. 

He replied: "Readying for the 
siege, dear. Tm an expert an 


HAWKS 

— & — 
HANDSAWS 


survival You are talking to the 
man who wrote the survival 
manuals for tbe SAS, the paras 
and the Royal Marine Com- 
mandos. Traps. Tools. Weap- 
ons. Wilderness first-aid. Min- 
imising water loss. Ropes and 
knots. Of OOOrse. Si gnalling aryl 
navigation. Coping with 
Mother Nature. Terrain. Move- 
ment Shelters. Fm a pan-spe- 
cialist, actually: tropical, des- 
ert, temperate - polar, if yon 
like. They are all the same at 
heart, heart." 

“What are those fists you’ve 
gotr 

He puffed out a smoke- 


wreath. “Weapons and traps, 
old love. Tm prioritising our 
plans. You would, be amazed, 
dear, at tbe lack of readiness in 
this b uildin g. Here we are, 
about to be assaulted by crazed 
and vengeful Tories, and no 
thought at all has been devoted 
to weapons and traps." 

“Traps?” 

“Deadfalls, mainly, triggered 
by tripline release action. Also 
a few spear traps. They are 
quite delicious. I also want 
snares and noose sticks, 
though time is r unning short.” 

“Weapons?” 

“Bows and arrows, lover. I've 
stipulated yew staves 4ft long; 
tapering from a central width 
of 2in to %ta at the ends. 
There’s a yew table upstairs 
which the servants are canni- 
balising. For the string, always 
use rawhide. Arrows are easy, 
heart: 2ft long, Kin wide, 
smooth and straight as possi- 
ble, notched at one end, with 
arrow flights made from feath- 
ers, paper, light cloth or 
trimmed leaves. Arrow-heads? 
I can see you are gasping to 
hear. Answer, tin, flint, bone 
or hardwood. Personalty, I love 
tin." 

I reeled into the night. The 
determination with which 
John Major Is digging himself 
to had caught me unawares. 
As I retreated down Downing 
Street. Major Summerbee blew 
a kiss and puffed another 
smoke-wreath. 


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