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FINANCIAL TIMES 


'Europe's Business Nevvspaoer 




WEEKEND MAY 23/MAY 29 1994 


D3523A 


* 







PM urges drive to 
clear beggars from 
Britain’s streets 

A drive to clear Britain's streets of beggars was 
urged by prime minister John Major, who said 
the social security system made begging unneces- 
sary. Beggars were an eyesore and could drive 
tourists and shoppers away from cities, he Mri. 
c a lli n g on the public to be “rigorous'’ in reporting 
beggars to the police. 

His remarks were fiercely attacked by political 
opponents and officials of leading charities. Nick 
Hardwick, director of the young people’s charity 
Ceutrepoint said: “What offends people is that 
so many young people and others who cannot 
look after themselves should be forced to beg.” 

Page 5 

Coats reach £Sm In Upjohn libel cone 

five million pounds 
($7-5m) in legal costs 
and £210,000 in damages 
were awarded at the 
end of one Of the costliest 
UK libel trials. The 
BBC.Upfohn.aUS 
drugs company, and 
Professor Ian Oswald, 
a psychiatrist, were 
each found by the 
High Court to have 
committed libel in 
a case concerning the possible side-effects of the 
sleeping pill Haldon. Upjohn president Ley Smith 
(above) described the result as “a victory". Page 26 

Comhffl fined £150,000: Composite insurance 
group Cornhm was fined £150,000 ($225,000) by 
Lautro, the life industry’s regulator, and ordered 
to pay £45,000 costs for foiling to control two 
firms which acted as appointed sales representa- 
tives. Page 26 

Pro te s t halts bank m oo ting s The annual 
meeting of HSBC Holdings, parent company of 
Midland Bank, was hatted as a student handcuffed 
herself to the chair occupied by Keith Whitson, 
the bank's chief executive, in protest at Midland 
policies on the environment and lending to less 
developed countries. Page 10 

Heinz buys F a r leys baby food group: Boots, 
the UK retailing and pharmaceuticals group, 
is selling its Farleys baby food group and its adult 
nutrition business to HJ Heinz, the US grocery 
products group, for £94m ($14lm). Page 11 

China opens airline sector to foreign e r s: 

China is to allow foreign iurlmes to invest in ~ 
the country's booming domestic airline business. . 

Page 4 

Tamils freed: Two Sri Lankan Tamils convicted 
in 1988 of a triple murder in a firebomb attack 
on a house in east London were cleared and freed 
by the Court of Appeal. 

Rod Star back on sale: Bed Star, British 
Rail's express parcels company, was put up for 
sale for a second time after a reorganisation 
intended to make it more attractive to bidders. 

Pages . . 

KoM balks at EU costs: Chancellor Helmut - 
Kohl said Germany had reached the limit of its 
financial contributions to the European Union 
and called for budget payments to be linked more 
closely to per capita incomes. Page 2 

Thom sons stake In security arm: Thorn 

EMI announced the disposal of a majority stake 

in its lossmaking security business for £3&6m, 

(557m) and said it was in ffiscosaons rega r di n g 
the sale of part of its electronics division. Page 10 

Japan may quit staling comm issi on: 

Japan threatened to withdraw from the Interna- 
tional Whaling Commission following its decision 
to establish a whale sanctuary in the Antarctic 


- • Bright but sticky Ideas: 
3^3 secret of success. "• 

• Oantal GcWfac the man 
who is reteunching Nasa. . 

■ • A journey pa ths 
ttafen tnibltebft. - 

•.Review: John QrisftawVa .*• 
latest blockbuster’ ■ !# _ ; 

The Chamber,- . . ■ ’ 

•|T-<3»*te1ot»»^teek ' 
and the week ahead m : 

the markets.- ' . " 


MONDAY 





' & 


■ STOCK MARKET INDICES 

ii m in. 

FT-SE WO 29*4 f-513) 

Yield 445 

FT-SE ante* tw JMK.19 C-7-231 

FWAJMm 1.50086 RHI 

WM 20,777.16 (tiM 

NwYoikkncMOTc 

flw Jones tod An — 3,74732 (-6.14} 

StfOnposMe 4S6.11 (-0L9SJ 

■ IHUMCHW RATES 

New Ybrk (ondflme 

$ USl 

frwtort 

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DM 24606 (2.4821) 

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Y 157.483 (157.540) 

£ index 7 S3 (79-85 

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tag Bond -8611 

YMd — 7391% 

■ LOWON MONEY 

New York fcncMtae: 

DM 1-84443 

ffr 5617 

SFr 1.4025 

Y ttU 

London: 

DM 1.6444 (1-643Q 

Fft 5518 (5.S188) 

SFr 14038 (1-4033 

Y 1044 f 104405) 

$ Index 653 PM) 

Tokyo ctes Y 10453 

SttoUeitefc .5A% 

USa tag gRt fare: _Jta ICZJJ (JuntQSiD 

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tads 43*7 (384.7) 


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M Higher forecast surprises Wall Street B Greenspan defends Fed’s rates policy 

US growth revised upwards to 3% 


By Mchaei Prowse 
in Washington 

The US Commerce Department 
surprised Wall Street analysts 
yesterday by revising up its esti- 
mate of economic growth in the 
first quarter to an annual rate of 
3 per cent from 2.6 per cent. Ana- 
lysts bad been ex p ect in g growth 
of only about 2 per cent. 

The figures were released as 
Mr Alan Greenspan. Federal 
Reserve chairman, came under 
attack on Capitol Hill for tighten- 
ing US monetary policy too 
aggressively in recent months. 
The Fed has increased short-term 
rates from 3 per cent to L25 per 
cent since early February. 

US bonds shares foil only 
modestly yesterday in spite of the 
upward revision after Mr Green- 
span used his testimony to the 
Senate banking committee to 
defend past rate increases rather 
than prepare the ground far fur- 
ther tightening of policy in the 
near term. HowBver, he left open 
the option for increases later in 
the summer. 


Europe’s bourses bear the brunt 


European shares and bonds 
tumbled sharply after the US 
GDP revision and Mr Alan 
Greenspan’s comments. ■ 

Id London, the FT-SE 100 fell 
53.3 to 2,966.4, its first close 
below 3,000 since September. 
Hie index has fallen by 5 per 
cent in the course of this week. 

Long-dated UK government 
bonds closed almost a point 
lower, with the yield an bench- 
mark 10-year gilts rising to 8.39 
per cent from &26 per emit. 
Equity and bond markets in 


France, Italy and Spain also lost 
ground. In Paris, selling orders 
from the US pushed the CAC40 
index down 41.22 to 2050.67. 
French 10-year bonds foil % of 8 
point and Italian 10-year bond 
lost more than a foil point. 

In Germany, the Dax index 
ended the official session well 
below the day’s high, closing tq> 
10.74 at 2,140.99. Selling contin- 
ued after the official dose, tak- 
ing the index down 26.19 to 
2,112^0. Long-dated bonds fell 
hank from the day’s 


London 

FT-SE 100 Index 

Houriy mo M Wrw nU 
3,150 



The upward revision reflected 
stronger consumer and govern- 
ment spending than first 
thought This more than offset a 
downward revision to corporate 
inventories. 

The economy is expected to 
grow faster again In the second 
quarter, with estimates of ann- 
ualised growth ranging from 3.5 
per cent to as much as 6 per cent 


Senior Democrat members of 
the committee warned that Fed 
action would have a “withering 
effect" on growth and challenged 
Mr Greenspan to produce hard 
evidence that inflation was accel- 
erating. 

Rate increases announced so 
for “would not impede satisfac- 
tory economic growth”, Mr 
greenspan said. The Fed had 


2,950 1 


Sourcse FT GnpHtft 


acted “in advance of the potential 
emergence of inflationary pres- 
sures, so as to forestall their 
actual occurrence". 

Mr Greenspan said the dollar’s 
recent weakness had been a 
“source of some concern” and 
drew attention to a sharp acceler- 
ation in credit growth. Business 
loans grew at an flnnnal rate of 
9.5 per cent in the first four 


May 


months after declining between 
1990 and 1993. Industrial capacity 
utilisation at 83.5 per cent was at 
its highest since the late 1980s. 

He gave the fullest account to 
date of the Fed’s strategy since 
early February. The Fed had 
begun to tighten policy partly 
because it had been worried by 
sharp rise in financial asset 
prices driven In part by huge 


investments in stock and bond 
mutual funds - $281bn (£i87^bn) 
in 1993 alone. The prolonged 
period of low short-term rales 
had created a “false sense of 
security and certainty” and 
“investor complacency". 

The Fed chose to raise rates 
cautiously at first - in quarter- 
point steps - for fear that a 
larger move "would create too 
big a dose of uncertainty which 
could destabilise the financial 
system, indirectly affecting the 
real economy". Given the sharp 
rise in bond yields "our worries 
would appear to have been justi- 
fied", Mr Greenspan said. 

However, he indicated that, by 
the Fed’s policy meeting on May 
17, most of the necessary adjust- 
ment in bond and stock prices 
appeared to have occurred. The 
half-point rate increase 
announced last week had thus 
occurred without an adverse 
market reaction. 

London shares. Page 17 
World stocks. Page 23 
Lex, Page 26 


Italy set 
for clash 
with EU 
over steel 
subsidies 


By Emma Tbcinr and 
Lionel Barber in Brussels 

‘S ' 

The European Commission is 
heading for a confrontation with 
the new Italian government over 
subsidies paid to steel producers. 

Mr Karel Van. Mlert, commis- 
sioner for competition, said yes- 
terday he had asked his staff to 
prepare proceedings against the 
Italians, following the collapse at 
the European Union’s steel res- 
cue plan last week. 

Government aid paid to steel 
mills in the northern Brescia 
region in return for capacity cute 
was, until last week, permitted 
under the rescue plan. Since the 
plan's collapse, the subsidies 
have fallen foul of the Cannnis- 
sian’s rales on state subsidies. 

In an interview with the Finan- 
cial Times, Mr Van Mlert said he 
would play no part in reviving 
the rescue plan which collapsed 
after Brussels rejected his pro- 
posals for capacity cuts. 

“I have a minimum of dignity," 
said Mr Van Mlert “I am not 
coming back. This is the end." 

The Commission’s action will 
present Mr Vito Gtratti, Italy's 
new industry minister, with a dif- 
ficult challenge. It may also 
evoke the wrath of Italy’s Euro- 
sceptics who are urging the new 
government to take a tougher 
line with Brussels. 

Mr Van Mierfs determination 
to follow normal Commission 
procedure, in spite of protests 
Quit the plan could yet be res- 
cued, wffl also cause consterna- 
tion in the steel industry. The 
industry was relying on Brussels 
to salvage the plan, launched 18 
months ago to reduce overcapa- 
city in the recession-torn sector. 

Under the plan Italy would 
have restructured its steel sector 
to return for production cuts. But 
proposal to cut capacity at 
mills in Brescia in return for sub- 
sidies was rejected last week 
when commissioners questioned 
the legality of the payments. 

Mr Van Mlert said there were 
now no viable alternatives to 
achieving the plan's minimum 
19m tonnes of capacity arts. One 
option would he to proceed under 
article 95 of the European coal 
and steel treaty which allows 
state subsidies to be paid to com- 
panies, but only after unanimous 
m rare nt fro m the Council of Min- 
isters. Mr Van Mlert said that 
procedure would delay action for 
so long that it would amount, in - 
effect, to foe plan's collapse. 



3i set for June 22 offer 
despite market weakness 


By Richard Gourfay 

31, Europe’s largest investor in 
unquoted companies, yesterday 
paved the way for a public share 
offer that is likely to value the 
British company at about £L6bn. 
The flotation will be one of the 
year’s largest share issues and 
the biggest UK investment trust 
ever launched. 

The listing will give private 
investors their first opportunity 
to buy shares in a group that has 
taken equity stakes in a wide 
range of small unquoted busi- 
nesses since it was formed as the 
Industrial and Commercial 
Finance Corporation in 1945. 

3i has investments valued at 
£3bn in 3,400 small UK businesses 
and has a strong bias towards 
manufacturing companies. 

Seven leading commercial 
banks and the Bank of England, 
which own 3f . plan to sen about 
40 per cent of the equity. A quar- 
ter of this will be made available 
to private investors, according to 
the pathfinder prospectus which 


was published yesterday. The 
offer is scheduled to be launched 
on June 22. 

The current weakness of the 
stock market prompted some 
analysts to wonder yesterday 
whether the shareholders might 
consider pulling the issue in a 
repeat of foe embarrassing post- 
ponement 14 months ago when 
some banks believed the likely 
float price was too low. 

Mr Ewen Macpherson. 3i chief 
executive, would not comment on 
the market fall or whether there 
was any chance of the issue 
being postponed. In the past, he 
has said the issue would be pul- 
led "over my dead body". 

If the market continues to fall 
before foe issue is priced it is 
likely foe banks will proceed but 
sell less than the planned 40 per 
cent of their stakes. 

“Hie issue is very important in 
the totality of the unquoted mar- 
ket and in terms of the whole 
function of getting venture capi- 
tal into the market place," said 
one analyst 


In the year to March 31, 3i's net 
assets rose 39.1 per cent to 
£1 J5bn. after including the write 
back of a £152m provision for 
deferred tax. This provision will 
not be needed once 3i floats and 
becomes an investment trust that 
is exempt from capital gains tax. 

The issue will be priced at a 
discount to this net asset value. 
Even though 3f is most likely to 
attract long-term investors, the 
discount may have to widen to 
make the shares attractive to 
investors if the market is still 
depressed before June 22. 

3i has set up a share informa- 
tion office and a “retail brokers' 
scheme" to encourage private 
investors to register early for 
application forms. Early registra- 
tion wffl not confer extra alloca- 
tion of shares. The adviser to foe 
issue is Baring Brothers and bro- 
kers are BZW, James Capel and 
National Westminster. 

Background and results, Page 10 
Lex, Page 26 
Serious money, Weekend II 


Nobel prize- winning author Alexander Solzhenitsyn holds traditional 
bread and salt and faces the press on r e tu r nin g to his native Russia 
for the first time since he was deported by the Soviet regime more 
foaa 80 years ago. Who needs Solzhenitsyn? Weekend I 


Meat men pack vote 
rolls for City battle 


By John Authors 

Leaders of the Corporation of 
Timiiftn and traders from Smith- 
field meat market are in an 
undignified race to manipulate 
the City's medieval system of 
elections. 

Both are trying to pack the 
rolls with votes before foe June 
15 closing date for this year’s 
City elections. 

Smithfiald tenants are in dis- 
pute with the Corporation, the 
local authority for the Square 
Ifite, over the rents they pay for 
the market. In. January, two meat 
traders won election to the Cor- 
poration’s general council, after a 
high turnout by Smilbfleld trad- 
ers in one ward. 

Yesterday, Mr Peter Martineltt. 
a market trader, submitted, nomi- 
nation papas to become the next 


CONTENTS 


Sheriff of London. He appears to 
have a good chance of victory. 

Iff successful, he would appear 
next to the Lord Mayor at cere- 
monial occasions, and would 
have foe right to sit at the Old 
Bailey law courts. 

Meat traders are also busy 
packing extra wards. Mr Michael 
Cassidy, the Corporation’s head 
of policy, foe traders’ prime tar- 
get, said yesterday that 360 mar- 
ket tenants had registered to vote 
in his ward. AH of them are tech- 
nically resident in one rented 
floor of one office bufldxog. 

Only residents, partnerships 
and sole traders are allowed to 
vote in City elections. However, 
to be resident, an individual 
needs only to rant property with 
a ratable value of £10 or more. 

Continued on Page Z6 


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9 THE FINANCIAL TIMES LIMITED 1994 No 32.378 Week No 21 


LOUDON- PARIS - FBAMKPURT NEW YORK - TOKYO 


TONIGHT THE CURTAIN 
GOES UP ON OUR LATEST 
PRODUCTION. 



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We'd like to wish 

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NEWS: INTERNATIONAL 


Funding of Union becomes big issue in German Euro-elections 


Kohl warns on 
EU contributions 


By Quentin Peel in Bonn 

Chancellor Helmut Kohl 
yesterday warned that Ger- 
many had reached the limit of 
its financial contributions to 
the European Union, and 
called for future budget pay- 
ments to be linked more 
closely to per capita incomes. 

In the stormiest debate so far 
in Germany’s European elec- 
tion campaign, Mr Kohl sought 
to counter a rising tide of criti- 
cism of the country's contribu- 
tions to the EU budget 

He was facing an accusation 
from Mr Rudolf Scharping. the 
leader of the opposition Social 
Democratic party (SFD), that 
the government was guilty of 
“gross negligence” in Using 
its budget contributions with- 
out proper regard for the soar- 
ing costs of German unifica- 
tion. 

In a formal government dec- 
laration to the German parlia- 
ment on European policy, Mr 
Kohl said that those member 
states with income levels com- 
parable to Germany's should 
assume greater financial 
responsibility. 

At the same time Mr Theo 
WaigeL, finance minister, said 
the government would refuse 


to approve any new EU pro- 
gramme which was financed 
according to the “old key”. 
Finance Ministry officials were 
unable to clarify his statement 
last night, but it suggests that 
he will be seeking an adjust- 
ment of Germany's budget con- 
tributions before approving 
any new spending areas 
beyond those already included 
in EU budget headings. 

He pointed out that Germany 
had sunk from second to sixth, 
place in the prosperity-ranking 
for EU member states, 
although it remained by far the 
largest net contributor to the 
Brussels budget He added that 
Bonn would reject any attempt 
to f inan ce the budget with 
greater use of borrowing. 

The harsh line on EU financ- 
ing from Mr Kohl and Mr Wai- 
gel comes in response to a 
wave of criticism in Germany 
over the country's net contri- 
butions to the EU budget, 
which reached EcuSbn f£6.9bn) 
in 1392. The question has 
become a big issue in the cur- 
rent European election cam- 
paign. 

Mr Scharping, accused the 
government of agreeing to a 
German budget contribution 
fixed up to 1399, without tak- 


ing any account of the loss of 
German per capita income 
since unification. 

In a sharp attack on the gov- 
ernment’s record in Brussels, 
he insisted that Germany’s 
budget contribution was at 
least DM3bn <£l.2bn) higher 
than it should be, aggravated 
by a further DML2bn contribu- 
tion to the British budget 
rebate. 

The confrontation in the Ger- 
man Bundestag came in an 
emergency debate on European 
policy, summoned specifically 
to answer the challenges 
emerging in the current Euro- 
pean election rampaign. 

Mr Kohl also spoke out on 
his commitment to European 
economic and monetary union, 
stressing that maintenance of 
the strict economic conver- 
gence criteria for a single cur- 
rency was more important 
than keeping strictly to the 
present timetable. 

“We do not want in any way 
to postpone the deadlines.” he 
said, “but realistically I must 
stress that the correct priority 
must be to stick to the stability 
criteria in the first place, while 
the question of the timetable 
must take second place. That 
must be clearly said.” 



Chancellor Kohl (near) listens to SPD leader Rudolf Scharping 
during a parliamentary debate on the EU yesterday taw 


German vehicle output 
increases 5% for April 


German car, bus and track 
output rose 5 per cent in April, 
bringing total production in 
the first four months almost 
level with the comparable 
period last year, according to 
the VDA industry association, 
Christopher Parkes writes. 

A 4 per cent rise in exports 
last month brought the total 
shipped abroad In the four 
months to 761,400 units, a rise 
of 2 per cent overall. 

The association, noting that 
total output rose 10 per cent, 
said car production last month 
increased to 350,900 units 
from 333,754 a year earlier. 

Light-truck makers suffered 
further from weak demand. 


with production down almost 
2,700 at 10,500 units, while 
output of “other” commercial 
vehicles showed continuing 
growth, expanding 27 per cent 
to 9,700. 

This sector, the only part of 
the motor industry showing 
consistent improvement, has 
stepped up manufacture 9 per 
cent in the first four months 
and increased exports 25 per 
cent Car exports rase 2 per 
cent to the end of ApriL 

According to the VDA 
incoming domestic and foreign 
orders for new cars rose last 
month, supporting a report of 
“pleasing” developments from 
German distributors. 


Inflation battle ‘won 
but no rate cuts 


5 


By Christopher Parkes 
in Frankfurt 

German infla tion is beaten, but 
cuts in key interest rates are 
unlikely in the near future, 
leading officials said yesterday. 

“The Bundesbank has won 
the battle against inflation," 
said Mr Wolfgang Franz, one of 
the "five wise men” on the 
Bonn government's council of 
economic advisers. 

The annual rate of consumer 
price rises had fallen to 23 per 
cent this month, and if the 
effects of administered prices - 


charges for local and federal 
government services - were 
excluded, it would be just over 
2 per cent, he said. 

Speaking in an interview 
with a domestic news agency, 
Mr Franz ducked questions on 
the possibility of further inter- 
est rate cuts raised by falling 
inflation. That was more Bund- 
esbank territory, he said. 

But Mr Hans Tietmeyer, the 
central bank president, made 
plain there was little likelihood 
of change. His remark earlier 
this week that “the horizon for 
rates was now cleared for some 


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on way 

time” - which caused this 
week's sharp fall In German 
stock markets - related only to 
the discount and Lombard 
rates, he said on radio. 

It was obvious that money 
market levels - including the 
repo rate at which the bank 
supplies short-term liquidity to 
the markets - must be able to 
move freely in the range of the 
4.5 per cent discount and the 6 
per cent Lombard, he added. 

His explanation seemed to be 
intended to clear up any linger- 
ing doubts still unsettling local 
and international financial 
markets. 

Mr Franz said he and his col- 
leagues were investigating the 
persistent strong growth in 
money supply behind the 
Bundesbank's decision to put 
rates on hold. 

However, he had more posi- 
tive news on the economy. 

S West Goman gross domestic 
product would grow by “a good 
1 per cent” this year, he said. 
Whether that mea n t L3 or 1,5 

GDP will grow ‘a 
good 1 %’ 

per cent could not be discerned 
from the available data. 

Mr Herbert Hax, the council 
chairman, raid separately yes- 
terday that L5 per cent real 
growth was possible this year. 

Although the council does 
not issue interim reports, yes- 
terday's statements suggest a 
marked change of heart 

In its formal forecast last 
November, the council's pre- 
diction of stagnation in the 
west run counter to govern- 
ment and economic Institutes' 
expectations of 1 to 15 per cent 
growth. 

Opinions on prospects from 
all acknowledged expert 
sources are now broadly in 
line. Even the Berlin DIW insti- 
tute, which last aut umn broke 
ranks with the country's five 
other top institutes and fore- 
told a 05 per cent foil in west- 
ern output, has come round. 

Although it did nor give a 
full-year forecast, earlier this 
week it reported an “unex- 
pected” L9 per cent surge in 
growth in the first quarter and 
predicted further expansion in 
the current three-month 
period. 


THE FINANCIAL TIMES 
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above mentioned luu companies is- 1 
Financial Times Limited, Number C 
Southwark Bridpe, London SEl ■NIL. ’ 
Company a incorporated under (be lew 
Eugfcwd and WakL Chairman: D.C.M. Be 

FRANCE 

PnHahing Director D. Good, f AH Rug 
Kwh. F.7S044 Pam Cedat Ut. TdeoW ( 
4297-0621, Fix (OH 43 7-063. Primer. S 
Sold Eclair, 15/31 Rue de Caire, F-W 
RouMB Codex I. Editor. Retard Lamb 
ISSN: ISSN 1148-3753. Commwwo Pane 
No 675C8D. 

DENMARK 

Fnanmal Tuna (Sandhuifau Lid, Vuim 
skafted4IA, DK-1 161 CctpcntagcnK. Ti 
phone M 13 44 41. Fax 33 « 53 35. 


j Schneider 
I chief held 


| NEWS IN BRIEF 

i Conference on 

I 


on fraud 
charges 

By John Bidding hi Pfcris 

I Mr Dfctier Piocaa-Valcndazac, 
chairman of Group* Schnei- 
der, the French electrical and 
engineering group, was yester- 
day detained In a Brussels 
prison on charges which 
include embezzlement and the 
falsification of annual 
accounts, the company said 
yesterday. 

Schneider said It rejected the 
charges, which were brought 
by a Belgian prosecuting mag- 
istrate and relate to com- 
plaints Hied by minority 
shareholders in Coflmlnes and 
CoffbeL two Belgian financial 
subsidiaries of the French 
group. 

Schneider launched an offer 
to take foil control of the com- 
panies in November 1992 as 
part of the restructuring of its 
Belgian activities. The terms 
or the offer were strongly con- 
tested by minority sharehold- 
ers in the two companies, who 
took legal action to secure a 
higher price and claimed Irreg- 
ularities in documents relating 
to the offer. 

Schneider agreed an out-of- 
court settlement on the price 
with the minority sharehold- 
ers at the beginning of this 
year. The complaints of the 
minority shareholders, how- 
ever, had prompted the Brus- 
sels judicial authorities to 
open an investigation last 
autumn. 

Schneider said Its chairman 
had been charged with “forg- 
ery and use of fraudulent doc- 
uments, embezzlement, falsify- 
ing annual accounts, breach of 
trust and breach of accounting 
laws”. According to Schneider, 
the Belgian state investigator 
is accusing the French group 
of haring managed its Belgian 
subsidiaries in a way that was 
detrimental to minority share- 
holders. 

Schneider said its manage- 
ment and employees were 
“deeply angered and shocked 
I by the action taken against 
I their chairman”. Hie company 
rejected the charges against 
j Mr Pineau-Valencienne and 
said it had always acted in the 
I interest of all of Its sharehold- 
ers. 

Shares in Schneider fell 
sharply following the 
announcement of charges, los- 
ing almost 6 per cent of their 
value to close at FFr390. The 
company, which is one of the ; 
CAC-40 leading industrial | 
shares on the Paris bourse, 1 
has animal sales of about 
FFr56.4bn. 

According to Schneider, Mr 
Ptneaa-Valendenne had trav- 
elled voluntarily to Brussels 
on Thursday to make a state- 
ment before the legal authori- 
ties and had requested a bear- 
ing on the issue. 

Schneider said It was 
unclear how long Mr Pineau- 
Valencienne would be 
detained. But he said it was 
possible the detention could 
last until Wednesday, when he 
is due to appear in court for a 
hearing. 

The company said it was 
staggered by yesterday's 
events, particularly because it 
had resolved the dispute con- 
cerning the terms of the acqui- 
sition of Coflbel and Cofi- 
mines. 

To reach the agreement, 
Schneider increased its offer 
for the acquisition of Cofibel 
and its subsidiary, Coflmlnes, 
by FFr60m to take the total 
cost of the deal to FFri.4bn 
(£163m). 


stability skips 
Balkan problems 

The European Union yesterday go* in ww "conference on 
stability” m eastern Europe* ami the Baltics under way. at the 
price of setting aside rannmuouH Balkan tonus, including dis- 
putes between Greece and Albania and I tefr and Sttmnfe. Two 
regional round tables dealing with central European and Raich* 
issues would be convened "at the earttoat opportunity” by the Ell. 
os part of ”a new Impetus" agreed by the foreign ministers and - 
officials from more than 40 |Hirt(cipating countries. . 

The general consensus was reached despite rumbling dteagrofr 
menis, Mr Andrei Kozyrev. Russia's foreign minister, said Russia, 
which sees itself us the protector of the rights of ethnic Russians, 
was awaiting full details of tho composition and nope of the 
Baltic round table before deriding. Slovenia, which aaptm to EU 
membership, was struck off the list uf foil participants at the 
insistence ut the new Italian government. Rome’s refusal to 
discuss border issues with its Slav neighbour* was criticised by 
Mr tojze Peterie. Slovenia's foreign minister, but he agreed to 
continue bilateral tafia. At the closing session Albania** foreign 
minister, Mr Alfred Swreqi. attacked the Greek government for 
“dangerous and unacceptable manipulation" of the Greek minor- 
ity in Albania. Darid Buchan and Anthony Hobinson. 

German data transmission deal 

A consortium including RWE. the utility* and Deutsche Bank 
yesterday won the contract to operate a dafe tnmBmtatan net- 
work in Germany, a market worth DNBfct CfoOOffi) annually. 

The new company, called GesvllschaR for QatenfUnk (Oft)), will 
compete against DoT? Mobil. a subsidiary Of Deutsche Telekom, so 
far the onlv company to provide data M&atttttlon services. 

GfD raid' It would spond DMSOQm to build about 1,500 stations 
[ across Germany through which it would relay data on short wave 
to subscribers using portable co mpu ters and modems. Michael 
Lindemann. Bonn. 

Spain pay settlements low 

; Spain's escalating labour casts are being ahiuply radioed as 
unions scute for below- Inflation salary Increases to th* 1964 
; round of collective wage agreements. An annual pay Increase 
over the next two years of 2.75 per cent covering 150,000 bank 
employees, which was signed yesterday, followed an agreement 
with unions for a 2.5 per cent wage rise to the construction 
1 industry. Year-on-ywa* headline Inflation is currently 4,9 per cent 
and to expected to foil to 15-1 per cent by the end of this year. 
Tom Burns, Madrid. 

Greek currency rallies 

The Greek drachma rallied yesterday against both the D-Mark 
and the US dollar, as overseas Investors poured to foreign cur- 
rency to buy next week's issues of Ecu- and US dollar-linked 
government bonds, with interest rates set at over 7 per cent The 
drachma closed at DM149. up from DM150.1 and at 9245.7, up from 
$246.4. Prime Minister Andreas Papondreou claimed the battle tu 
avert devaluation “Is still critical but has been won," raying that 
short-term interest rates, now at record levels, would start com- 
ing down next week. However, economists predict renewed pres- 
sure on the Greek currency as soon as interest rates decline. 
Kerin Hope. Athens. 

Solidarity supporters on march 

Tens of thousands of Solidarity trade union supporters marched 
through Warsaw to demand an end to state sector wage controls 
and the introduction of collective wage bargaining procedures 
throughout the economy. The Solidarity march comes after a 
nationwide strike campaign petered out last month following . 
government concessions to brown coal miners and a decision by 
hard coal miners to suspend their protest Christopher Bobinski, 
Warsaw. 

Madrid chief prosecutor replaced 

Spain replaced its chief public prosecutor yesterday in the latest 
in a series of high-level resignations over the last four weeks. The 
departure of the controversial Mr EUgfo Hernfindez was not 
directly related to recent corruption cases. However, his impar- 
tiality had been called into question by opposition parties. The 
cabinet named Mr Carlos Granados, a Supreme Court judge, to 
replace him. Daokt White, Madrid. 

Ankara talks on Cyprus 

Turkey's President Suleyman Demlrel will hold talks this week- 
end in Ankara with Turkish Cypriot leader Rauf Denkta? in a 
last-ditch attempt to secure agreement on the current round of 
United Nations-sponsored talks on the Cyprus dispute. With the 
UN secretary general due to issue a repot on progress on the 
talks next week, diplomats ray this meeting is the last chance to 
win Mr Denktes's backlog for the UN's confidence-building mea- 
sures, aimed at finding a solution to the 20-year division of the 
island. John Murray Broun, Istanbul 

Oslo proposes date for EU vote 

Norway's government proposed November 28 as the -date of a 
referendum on European Union membership yesterday, allowing 
sceptical Norwegians to decide after Nordic neighbours Finland 
and Sweden. The proposal is likely to win support to parliament 
which formally fixes the date. Sweden is to hold its referendum 
on November 13 and Finland probably on October 16. Austria, the 
fourth country aiming to join from January i, will hold its vote 
on June 12, Reuter, O slo 


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Mr Clinton eats humble pie in Asia 

Jurek Martin on why the US president caved in over human rights 


The Clinton administration 
came to office promising to put 
economics on the front homer 
of foreign policy and give Asia, 
the fastest-growing economic 
region, a tocos at least equiva- 
lent to that enjoyed for decades 
by western Europe. 

But there was a gap between 
conception and execution that 
not even President Bfll Clin- 
ton’s Asian trip last summer 
and the first-ever Apec summit 
last November could bridge. 
Whatever its good intentions, 
the US remained at severe odds 
with both China and Japan, 
the two most important Asian 
powers. 

This week. Washington has 
twice made amends. On Mon- 
day it agreed with Japan to 
re-open trade negotiations on 
terms that remain ambiguous 
in the extreme bat which cer- 
tainly have broken a painful 
impasse. On Thursday, Mir 
Clinton said he would renew 
China’s meet favoured nation 
trading status without refer- 
ence to its human rights 
record. 

Garber this month, Mr Win- 
ston Lord, the subtle under- 
secretary of state for Aslan 
affairs, .wrote a memorandum 
to his boss, Mr Warren Christo- 
pher, outlining: what he saw as 
a real problem. An essential 
passage ran as follows: 

“A series of American mea- 
sures - threatened or 
employed - risk corroding our 
positive image in the region, 
giving ammunition to those 
charging we are an interna- 
tional nanny, if not a bully. 
Without proper course adjust 


mea t s, we could subvert our 
influence and our interests.'" 

Mr Clinton himself acknowl- 
edged that "course adjust- 
ment” very frankly on Thors- 
day evening. Difficult though it 

was for him to lower the ban- 
ner of human rights on which 
he had campaigned for the 
presidency and which formed 
the basis for his executive 
order coupling trade prefer- 
ences and Chinese civil liber- 
ties, bis concerns had to be bal- 
anced against other factors. 

“China lias an atomic 
arsenal and a vote and a veto 
in the UN security oouncfl,” he 
said. “It is a major factor in 
Asian and global security. We 
share important interests, such 
as in a nuclear-free Korean 
peninsula and in sustaining 
the global environment China 
is also the world’s fastest grow- 
ing economy. Over $8bn 
f£&3bnj of US experts last year 
supported more than 150,000 
American jobs.” 

He even conceded the merits 
of the arguments of those who 
contend that economic and 
political pro gress are inter- 
linked. "Will we do more to 
advance the cause of human 
rights if China is isolated, or if 
our nations are engaged in a 
growing web of political and 
economic co-operation and con- 
tacts? 1 " President George Bush 
never put it better. 

Mr Christopher, perhaps the 
staunchest human rights advo- 
cate insidA the administration, 
refused to admit that the strat- 
egy of last summer was mis- 
conceived. Hie argued In a tele- 
vision interview that at least It 



Clinton: rough ride oft Pacific policy 


brought Congress and the 
administration together on 
China, ending years when both 
bad been at “loggerheads". 

But he added, “I think it was 
always difficult for the Chinese 
to do what we had asked”, 
especially in releasing political 
prisoners. Philosophically, he 
went on, “we’ll be keeping 


steady pressure on through 
other instruments In a way 
that may cause them to make 
more progress in the future.” 

All Mr Christopher got on 
Thursday was a handful of 
modest sanctions on Chinese 
munitions, a $20Qm drop in the 
ocean of $40bn bilateral trade, 
and a few promises to spend a 


little more on human rights 
propaganda. It may be doubted 
that US companies will do 
much to enforce the “volun- 
tary set of principles for busi- 
ness activity tn China” com- 
mended by Mr Clinton. 

The problem with Japan has 
been of an entirely different 
political dimension. The last 
two governments in Tokyo 
have been weak, whereas Bei- 
jing's has proved itself capable 
of thumbing its nose at the US. 
But trade pressure on Japan 
appeared to be producing 
diminishing returns. 

In arriving at pragmatic 
solutions, the administration 
found itself under growing 
pressure from a variety of pow- 
erful commercial lobbies in 
Washington and elsewhere, 
Britain insistently chipped in 
that a trade confrontation with 
China was bound to have a del- 
eterious pflW* On the twwirwny 
of Hong Kong in the run-up to 
the resumption of Chinese con- 
trol in 1997. 

But the critical political cal- 
culation that this spring 
different from last summer 
surely lay in the shift in senti- 
ment in Congress, itself the 
target of much lobbying. 

Much as human rights advo- 
cates like Senator George 
Mit chell, the majority leader, 
and Congresswoman Nancy 
Pelosi continued to press their 
case on moral grounds, many 
who had supported the execu- 
tive order cm China began to 
question the wisdom of its 
logic if it put American exports 
and jobs at risk. 

Whatever the threats of addi- 


tional legislation from Capitol 
Hill, the political line-up on 
China now resembles that of 
the Nafta debate, where the 
coalition of labour and liberal 
interests, who voted for Mr 
Clinton in 1992, proved insuffi- 
cient to stop free trade with 
Mexico a fd nanaria 

This realisation strengthened 
the hand, of those inside the 
administration who have put 
much effort in the US export 
promotion drive, which has 
already produced dividends 
with large aircraft and tele- 
communications deals with 
Saudi Arabia and which eyas 
China greedily. Boeing, for 
example, could only describe 
as “premature” reports that it 
was close to landing a f5bn- 
plus order by China. 

The treasury and commerce 
departments responded to the 
wishes of their domestic con- 
stituencies, with the former 
increasingly concerned that 
the impasse with Japan was 
disturbing international cur- 
rency markets. Mr Robert 
Rubin, the self-effacing but 
influential head of the White 
House national economic coun- 
cil, was also reluctant to push 
flhina to the hilt. 

Whether the “new Asia”, 
which, with Singapore and 
Malaysia in the vanguard, hflg 
taken, to lecturing the US on its 
own shortcomings, will 
respond to a dear shift in US 
policy remains to be seen. But 
the Invitation, issued by Mr 
Clinton at the cost of ditching 
some old friends and eating 
some humble pie, is at least on 
the table. 


A big step in 
long march to 
respectability 


Human rights groups denounce ‘hypocritical’ US 


By Tony Walker in Beijing 

Human rights groups reacted angrily 
to the decision to extend China’s most 
favoured nation trading status, accus- 
ing Mr Clinton of removing an pres- 
sure on the nhtnesa to improve their 
human rights practices. 

“CBnton has left ins administration 
looking vacfilating and hypocritical, 
while tiie Chinese leadership, by con- 
trast, has emerged as hard-nosed, 
uncompromising, and victorious. 
We're deeply disappointed by this 
decision,” said Mis Sidney Jones, the 


executive director of Human Sights 
Watch/Asia. 

The consensus view among western 
nffirfalfl in Beijing is that the adminis- 
tration bungled the mfb-humaxi rights 
issue from the start by inmrting on 
linkage and has suffered embarrass- 
ment as a consequence. 

The lesson here for a young and 
inexperienced American president 
when dealing with the dragon throne 
is that you better be prepared and 
have a carefuUy-thoughfc-out strat- 
egy,” said one diplomat. 

Western officials expressed concern 


that China's apparent “victory” on 
the vexed mfh issue would strengthen 
the hands of hardliners in the leader- 
ship who advocate an uncompromis- 
ing stance on human rights. 

American business in China wel- 
comed the decision. Mi* Phil Carmi- 
. cfaael, president of the American 
Chamber of Commerce in Beijing, pre- 
dicted that “a lot of deals with be 
concluded” and that US trade deficit 
with. China would shrink. 

SinchUS two-way trade reached 
$4(L3bn (£26.8bn) last year, an 
‘ increase of 2L8 per cent over the year 


before. The balance in China’s favour 
readied *2&8bn, a 25J per cent jump 
over 1992. 

Human Rights Watch/Asia warned 
that the MFN decision left “outspoken 
intellectuals, workers, and religious 
activists” more vulnerable to persecu- 
tion and arrest “given that Chinese 
leaders understand that a crackdown 
would not bring about a disruption of 
trade”. 

It said that fn spite of claims to the 
contrary by the administration, 
severe restriction remained on Chi- 
nese emigration; exports at prison- 


matte goods continued; no agreement 
had been reached on Red 
Cross access to Chinese 
prisons; and “no . progress’ had been 
made in curbing huma n rights a b u ys 
in Tibet 

The group called on Congress to 
authorise Mr Clinton to raise tariffs 
an all exports from China by 10 per 
cent across the board. “Ibis would 
not destroy US-China trade, but it 
would require China to pay a signifi- 
cant price for not fulfilling 
conditions laid down last year for mfn 
renewal." 


By Tony Walker In Beijing 

It is not the smallest of ironies 
that on the eve of the fifth 
anniversary of the June 4 Tian- 
anmen massacre China, with 
President Clinton’s help, has 
tak ftn another ami s ubs tantial 
step in its long march back to 
international respectability. 

The US decision to extend 
China's most favoured nation 
trade status for another year 
virtually without conditions 
and to propose that the linkage 
between trade and human 
rights be severed could hardly 
have come as a more welcome 
development for Beijing. 

Five years after Chinese 
tanks blasted demonstrators 
on the streets of the capital to 
worldwide disgust, China’s 
international rehabilitation is 
well on the way to being for- 
malised; although Its human 
rights transgressions are cer- 
tain to continue to be an irri- 
tant to its relations with the 
West 


Five years after 
Tiananmen 
rehabilitation 
is in sight 


While Western states main- 
tain military sanctions, even 
these bans are weakening. 
Judging by increased military 
exchanges between China and 
the West it 'is only a matter of 
time before restrictions on 
aims sales are removed. 

From China’s standpoint, 
among the more important 
consequences of the mfn deci- 
sion is that another obstacle 
has been removed that might 
interfere with its manifest 
ambition of becoming a world 
trading power to match its 
political aspirations. 

In the short term, Mr Clin- 
ton's decision should also 
ensure that China becomes a 
more active participant in 
regional forums such as the 
Aria Pacific Economic Cooper- 


ation forum which is emerging 
as a potential cornerstone of 
US policy In the Pacific. 

Indeed, China’s foreign min- 
istry yesterday referred to the 
opportunities for an enhanced 
regional partnership. “China 
and the United States share- 
broad interests,” it said. “The 
current situation offers an his- 
torical opportunity for the 
enhancement of Sino- American 
relations.” 

The US decision will cer- 
tainly have a positive impact 
on the Apec summit to be held 
in Jakarta later this year to be 
attended by, among others, Mr 
Clinton and Mr Jiang Zemin, 
his Chinese counterpart. 

The mfn decision te also 
likely to facilitate China’s 
negotiations to rejoin the Gen- 
eral Agreement on Tariffs and 
Trade (Gatt>, and its successor 
World Trade Organisation. An 
early indication of progress on 
this front will come in Wash- 
ington late nest week when Mr 
Long Yongtu, Chinn's chief 
Gatt negotiator, begins bilat- 
eral talks with US officials on 
the Gatt issue. 

Gatt negotiations, which 
have proceeded in fits and 
start partly because of US diffi- 
dence. are likely to accelerate. 
The chances of China becom- 
ing a founder member of the 
WTO when it comes into being 
at the beginning of 1995 have 
been enhanced. 

Perhaps the most important 
consequence of the mfn deci- 
sion is its likely impact on the 
fractious Sino-US relationship 
itself. As the 21st century 
approaches and with it what is 
widely expected to be the era 
of the Pacific there is scarcely 
a more important partnership. 
Mr Clinton has made possible a 
less rancorous and more con- 
structive relationship. But he 
has not waved a magic wand. 
Differences will persist with 
the West over h uman rights 
and other issues. 

If the process of the past 
year has demonstrated any- 
thing, it is that China will be 
tough and combative in 
defence of what it perceives to 
be its own interests. 



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FINANCIAL TIMES Wt-EKF.NO MAY 28/MAY » IW4 


NEWS: EUROPE 


Arafat’s 
Jerusalem 
plan sparks 


China opens 
airline sector 




rumpus 


By David Horovto fai 

Jerusalem 


to foreigners 


Israel and the Palestine 
liberation Organisation have 
begun a battle of -words over 
the most sensitive element of 
their conflict: the future of 
Jerusalem, claimed by both 
sides as their capital. 

The final status of the city, 
• traitor under Israeli rule when 
Arab East Jerusalem was cap- 
tured by Israeli troops in the 
1967 Six Day War, is intended 
to be resolved in negotiations 
due to begin in about two 
years’ time. 

But a draft Palestinian con- 
stitution, published this week 
with the appparent approval of 
Mr Yassir Arafat, the PLO 
chairman , proclaims that 
"Jerusalem is the capital of 
Palestine." Mr Arafat’s aides 
have been saying tor several 

Weeks that the c hairman 

in te nds ; to visit the city during 
his trip to newly-autonomous 
Jericho next month, and lead a 
prayer march to the Temple 
Mount in Jerusalem’s Old City. 

When Mr Arafat’s plans to 
visit the city were first publi- 
cised, aides to Prime Minister 
Yitzhak Sabin indicated pri- 
vately that there would be no 
government opposition. But 
the city’s mayor, Mr Khud 
Ohnert, who is also a Knesset 
member from the right-wing 
Likud opposition, has threat- 
ened to bring 500,000 demon- 
strators into the streets to 
ensure Mr Arafat is kept oat of 
town. Mr Rabbi now appears to 
have registered the symbolic 
significance of a triumphant 
Arafat-led procession through 
the city. On Wednesday, he 
convened a meeting in his 
nfpinft of senior ministers and 
police, army and security 
chiefs, to discuss PLO attempts 
to focus attention on Jerusa- 
lem and assert Palestinian 
rights in the eastern half of the 
city, where more than 150,000 
Palestinians reside. Mr Moshe 
Shahal, the minists- of police, 
intimated after the meeting 
that Mr Arafat was unlikely to 
receive an Israeli government 
invitation to visit 

In a speech yesterday, Mr 
Rabin declared that Israel 
would block any PLO effort to 
set up official institutions in 
Jerusalem. “AH the Palestinian 
self-government centres will be 
in Jericho," he said, “as we 
and they have agreed and com- 
mitted ourselves to in writing." 
No official date has yet been 
set for Mr Arafat’s trip. 


By Tony WaHcer In Beijing 


fi frina is opening its booming 
domestic airline business to 
foreign participation on a lim- 
ited basis. The move is certain 
to attract considerable interest 
foom the aviation 

industry. 

The official China Daily 
reported yesterday that foreign 
carriers would be permitted to 
invest in local airlines or 
launch joint projects. Foreign- 
ers would also be encouraged 
to invest in ground facilities 
such as the operation of termi- 
nals and catering. 

Foreign investment would be 
limited to 35 per cent, and vot- 
ing rights could not exceed 25 
per cant, the newspaper quoted 
a government circular pre- 
pared by the Civil Aviation 
Authority and Ministry of 
Trade as saying. 

Although Beijing announced 
last year that it would allow 
foreign participation in its 
domestic airlines, yesterday's 
statement reveals more detail 
about the scope and nature of 
foreign investment 

China , whose annual rates of 

passenger growth of about 20 
per cent are among the world’s 
highest has been striving to 
upgrade its domestic airlines 
and facilities, but has found it 
almost impossible to cope with 
the huge and growing demand 
in this latest phase of its eco- 
nomic liberalisation. 

The official circular specified 
that in the case of joint ven- 
ture airimes and ground facili- 
ties the positions at chairman 
and general manager should go 


to Chinese. Other positions 
could be filled by foreigners. 

The directive said airlines 
with foreign investment would 
be treated equally with airlines 
owned and operated exclu- 
sively by the government. 

International carriers have 
long been eyeing the Chinese 
market A western airline exec- 
utive said yesterday that China 
had the "potential of being the 
largest airline market in the 
world., .virtually every airline 
is interested”. 

China now more than 20 
regional airlines and has 
declared for the moment a 
moratorium on the Hrancmg of 
new carriers following a rash 
of accidents and near misses. 

Foreign airlines have already 
made a start in attempts to 
become more involved in Chi- 
na’s aviation business. Luft- 
hansa, for example, has a joint 
venture with Air China which 
provides aircraft maintenance 
at Beijing capital airport. 

Qantas, the Australian car- 
rier, has an ai craft mainte- 
nance joint venture with China 
Southern airlines based in 
Guangzhou and Thai Airways 
is t raining cabin crews for the 
Guangzhou-based carrier. 

• Boeing is close to clinching 
a $5bn deal to supply 50 jets to 
China following President Clin- 
ton’s decision to extend most 
favoured nation status. 

Under the agreement the 
Chinese could order as many 
as 15 each of Boeing’s new 
twin-engine 777 jets, the mid- 
size 757s and smaller 737s. 
They may also buy several 
wide-bodied 747-400 jumbos. 



Japanese 
inflation 
subsides 
to 0.8% 


By V Mmtn Oawfctoa In Tokyo 



Greenpeace campaigners fat 
Puerto VaBarta, Mexico (above) 
cel ebr a te the decision to ban 
whaling in the Antarctic, wfaSe 
a glum Mr Kazuo Sbtma, 
Japan's delegate to the Inter- 
national Whating Commission 
(below) speaks to reporters 


Japan threatens to quit 
whaling commission 


By Gerard Baker fa Tokyo 




Japan yesterday threatened to 
withdraw from the Interna- 
tional Whaling Commission 
following its decision to estab- 
lish a whale sanctuary in the 
Antarctic Ocean. 

Officials at the ministry of 
agriculture, forestry and fish- 
eries said the government 
would consider what action to 
take when it had heard the full 
report of the Japanese delega- 
tion to the IWC when it 
returned to Tokyo next week. 
But they said Japan's depar- 
ture from the commission 
could not be ruled out 

At the meeting in Puerto 
Valiarta, Mexico, the IWC 
agreed to bon all whaling in 
more than 28 million square 
kilometres around Antarctica. 

The ban is expected to pro- 


tect 90 per cent of the world’s 
whales, which feed in the 
waters of the southern hemi- 
sphere. It was supported by 23 
member countries and opposed 
by Japan alone. China. South 
Korea and four other countries 
abstained. Norway, the other 
significant whaling nation, did 
not take part In the vote. 

A succession of senior minis- 
ters swiftly denounced the 
decision. The chief cabinet sec- 
retary, Mr Hiroshi Kumagal, 
said: “We cannot say it is a 
scientific decision. The Japa- 
nese government regrets it.” 

Mr Koji Kaklzawa. the for- 
eign minister, said that debate 
over the sanctuary should be 
baaed on scientific and 
research data, claiming that 
the population of minke 
whales In tire region, the main 
object of the commission's rul- 


ing, was actually Increasing. 

Japan has 90 days in which 
to lodge a complaint against 
the decision, and seems likely 
to do so. 

Japan has threatened to 
withdraw from the commission 
in the past but has foiled to do 
so in order to avoid interna- 
tional condemnation. 

Mr Mutsuki Kato, the fish- 
eries minister, suggested that, 
short of withdrawal, other 
options would include a 
detailed review of Japan's sig- 
nificant financial contribution 
to the IWC. 

But it was also possible that 
the government would seek an 
exemption from the whaling 
ban or simply ignore it. The 
commission has no power to 
enforce its edicts which have 
proved flexible in the past 
Saving the whales. Pa^p 9 


UK backs Virgin-Delta pact on transatlantic route 


By Paul Betts, Aerospace 
Correspondent in Annecy, 
Franca 


Britain yesterday said It was 
ready to approve the transat- 
lantic airline partnership 
between Virgin Atlantic Air- 
ways and Delta Air Lines to 
encourage greater competition 
and consumer choice on flights 
from London's Heathrow air- 
port to the US market A for- 
mal announcement from the 
department of transport is 
expected an Tuesday. 

Mr John MacGregor, UK 
transport secretary, said he 


was pressing Mr Federico 
Pena, his US counterpart, to 
approve a Virgin-Delta deal as 
soon as possible. 

During a meeting of Euro- 
pean transport ministers at 
Annecy, which Mr Pena 
attended as an observer, Mr 
MacGregor said he was pre- 
pared to offer US airlines 
greater access to UK regional 
airports as well as London's 
Stanstead airport as part of a 
package on air transport liber- 
alisation, including US 
approval of the Virgin-Delta 
deal. 

It was the first face to face 


meeting between the two 
transport secretaries since last 
September. In December, the 
US walked away from negotia- 
tions on liberalisation, follow- 
ing the UK's refusal to open up 
immediately London's Heath- 
row airport to all US carriers. 

Instead, the UK has proposed 
a gradual approach to open 
skies between the two coun- 
tries and has become increas- 
ingly frustrated at the US 
refusal to return to the negoti- 
ating table with constructive 
counter-proposals. 

Mr Pena is faring conflicting 
pressures from US airlines 


which have made his negotia- 
ting position difficult Ameri- 
can Airlines, one of the two 
largest US carriers, has. been 
pressing Washington to block 
negotiations unless the UK 
opens up Heathrow, the 
world's largest airport, imme- 
diately. 

TWA has also opposed the Vir- 
gin-Delta partnership, while 
Delta this week urged the US 
government to approve the 
pact 

The two companies’ partner- 
ship includes a ticket code- 
sharing deal which would give 
the US airline access into 


Heathrow. 

Under the current aviation 
agreement only American Air- 
lines and United Airlines can 
fly into Heathrow. 

Mr MacGregor said the Vir- 
gin-Delta partnership would 
increase competition on trans- 
atlantic routes from London. It 
would also provide more con- 
sumer choice without putting 
additional pressure on scarce 
landing slots at Heathrow 
since Delta would be buying 
about £l00m-worth of seats a 
year on Virgin transatlantic 
flights to Heathrow. The UK 
has seen the partnership as a 


lever to reopen talks on a 
wider open-skies agreement 
with the US. 

Mr MacGregor said approval 
or a Virgin-Delta deal would 
demonstrate "in a practical 
and constructive way that the 
UK was trying to make prog- 
ress in its efforts to liberalise 
air services between the two 
countries." 

Mr Pena was unable to give 
Mr MacGregor any assurances 
on the Virgin-Delta deal 
because the US administration 
was still receiving representa- 
tions on the partnership (torn 
other US carriers. 


South Korea sees 
7% growth rate 


PUBLIC CALL FOR TENDERS FOR THE SALE OF THE ASSETS 
OF THE COMPANY UNDER THE TITLE “ALTIS TOURISM AND TRADE CENTRE S.A.” 


The Sodets Anonyms under the title “ASIUCA AKHUTA A.E.* with heed offices In 
Athena (43 Paneptetimiou Str.) lawfully represented under Its capacity of special 
liquidator by virtue of resolution No. 357/31-3-1994 of the Patras Court of Appeal, of 
the limited JlaWSy company “ALTO TOURISM AND TRADE CENTRE SA." 


ANNOUNCES 

A public call for tenders with seeled, binding offers, for the sale of the total 
assets of the enterprise under spedal liquidation by virtue of article 48a, 

L 1882/1990, of which the content Is the exploitation of the hotel “ALT1S" of the 
sodeta anonyms under the title "ALTIS TOURISM AND TRADE CENTRE SJL" 


ACTIVITIES AND BRIEF DESCRIPTION OF THE COMPANY 
The company was founded on 18.10.1983 with the objective of exploiting tourism and 
trade centres in Anderrt Olympia and other Greek dtles and exercises a hotel 
enterprise In Andent Olympia, Prefecture of flte, Greece. 

The assets of the oompany to be sou are dsaoribed in detsR In the offer memorandum 
and consist of one (1) hotel complex fully equipped, located in Ancient Olympia, 
Prefecture of Ula. Western Petopoonese, on the regional road Pyrgos-Trlpoli, at the 
edge of the city near the Archaeological Site and opposite the OTE (State Telephone 
Company} buBdfog and the Town Hal, under the title “ALTIS”. 

It is a B Class hotel with a capacity of 61 rooms and 1 16 beds. It is erected on a site 
with a total area of 1,618.85 sq.m, which occupies the entire bidding block (BB 32} 
and it consists of a basement (1,160.26 sqm), a ground floor (1,14526 sqjn.), a first 
storey (1,116.72 sqjn.}, a second storey (956.88 sq.m.) and a terrace (37.70 sqjn.), 
plus foe electromechanical installations required for the operational needs of foe 
tourism unit and Its security such as air conditioning, fire protection, kitchen 
instaRationa, laundry, confectionary shop, restaurant, telephone centre, etc. 


NVITES 

Any Interested party to receive, in the event they have not already received, foe offer 
memorandum, and submit a sealed, binding offer accompanied by a letter of 
guarantee by a Bank operating lawfuly in Greece. 


TERMS OF THE CAU FOR TENDERS 

1. The pubfe call for tenders wffl be carried out according to the provisions of article 
46a, 1. 1892/1990 which was added to foe law by virtue of the provision of artkto 14,1. 
2000/91 , the terms inducted In foe present call tor tenders and the terms ol foe offer 
memorandum, which Interested parties may obtain after submitting a pledge of 
confidentiality In writing. 

2. In order to pa rtf dp ate In the cell for tenders, Interested parties are Invited to 
deliver a sealed, binding offer in writing by 14A0 on Tuesday, June 21, 1994 to 
the Olympia notary public HA. Chrlstoe Lambropoukn, 280 70 PelopJon, Ilia, teL 
hO. (0624) 31424. 

3. Each offer will be accomp a nied by a letter of guarantee Issued by a Bank 
operating legally In Greece, with the contents described in the offer 
m emo r an dum and amounting to the sum of fifty million (50,000,000) drachmae. 

4. The offers and foe letter of guarantee must be delivered in a sealed, opaque 
envelope. 

5. The offer must mention dearly the amount offered for the purchase of the total 
assets of the company under Nquldatlon and must not contain any terms, options or 
vague phrases which might create uncertainty as to the manner of payment of the 


6. The delivery of the offers wifi be made by the interested party to person, or by Ns 
authorized represen ta tive. 

7. Overdue offers will not be accepted and win not be considered. The binding nature 

of foe offers wffl apply until the award of the safe. 

8. The assets of the company and afl the elements of which they consist such as 
real estate, moveable objects, name, claims, title and abbreviated title, rights, etc. will 
be sold and transferred "as and where they are'. f.e. in their real and legal condition 
and at the place where they are located on the date Of Signing the contract of sale. 

9. The liquidating company and the creditors representing 5i% of total daims 
against the company (park 1, article 48a, I- 1892/1990 as It currently applies) are not 
Habie tor any legal or real defects or the lack of any attributes of the obfods and rights 


being sold, nor are they BaWe for any omissions or inaccuracies contained in the offer 
memorandum and any correspondence. 

10. Interested potential purchasers are obligated, under their own supervision, and by 
their own means, expenses and personnel, to investigate and acquire a personal 
perception ot the objects being sold, and to mention in their offer that they are fully 
informed as to the real and legal condition of the assets uniter sale. 

11. The liquidator and the creditors mentioned in para. 9 above are entitled, according 
to their own judgement to reject offers containing terms and options, regartfless of 
whether they are superior to other offers as regards the amount being offered. 

12. In the event that the party to which foe assets under sale are awarded, violates its 
obligation to come forward arte sign foe contract within ten (10) days from foe relevant 
invitation by foe liquidator and observe the obligations arising from the present 
announcement, the letter ot guarantee amounting to fifty million drachmae 
(50,000.000) Is declared forfeited in its entirety in favour of the liquidating company 
‘ASTIKA AKINITA A.E. ", towards covering all its expenses of any type and its 
services, as also any direct or Indirect damages, without foe necessity of proving 
specific damage, and as a penal clause in favour of that company, deemed as having 
been submitted with the offer, so that it can be coBected from the Bank issuing the 
guarantee. The letters of guarantee submitted far participating in the tender will be 
returned to afl other participants following foe evaluation report of the liquidator and 
the creators mentioned In para. 9 above, and to the successful bidder, to whom the 
sale will be awarded, foflowing the payment of the amount agreed and the drafting of 
the payment order. 

13. The seals of the offers will be broken by the notary public mentioned above 
at his office, at 13.00 on Wednesday, June 22, 1994. 

14. The successful bidder will be foe party whose offer will be judged by foe Uqukfalor 
and approved by the crecfitors mentioned In para. 9 of the present as being the most 
advantageous for the company's crecfitors. 

15. The liquidator wiH notify foe successful bidder in writing or his obligation to come 
forward to foe place and at the time determined In the notification, for signing foe 
contract transferring the assets, according to foe terms of the offer and any improved 
terms that may be indicated by foe crecfitors and agreed with foe highest bidder. 

16. The signing of the transfer contract stands as a Anal assignment according to 
article 1003 of the Code of Civil Procedure whereas the amount to be paid to the 
liquidator by the highest bidder stands as a bidding payment according to article 
1004 of the Code of Civil Procedure. 

17. All expenses and costs arising tram participation in foe tender and the transfer 
(tax, stamp duty, notary public's fees, reqistrar of mortgages, announcements, etc) wiH 
burden exclusively the interested potential purchasers and the highest bidder 
respectively. 

18. In foe event ot part of the purchase pnea being on credit foe highest bidder will 
be obligated to provide any guarantee that may be requested by foe liquidator 
according to fife own exclusive judgement, and will be burdened with all related 
expenses, costs and fees required for foe formation ol such guarantees and their 
termination. 

19. The Bquldator and the creditors win not bear any responsibility or liability against 
those who wiH participate in the tender as regards foe evaluation ol foe oilers, their 
recommendation of the successful bidder, the decision for the repetition or 
cancellation of the tender and any other decision relevant to foe procedure and 
realization of the tender. 

20. The submission of the binding offer does not create a right of awarding the 
assignment for the sale, in general, ail parties participating in the tender do not 
acquire any right or claim arising from the present announcement and their 
participation In the tender against foe liquidator or the creditors tar any cause or 
reason. 

21 . The present announcement has been drafted in the Greek language and 
translated in the English language. In every Instance however, foe Greek text will 
prevail. 

interested parties may collect otter memorandums and receive other information from 
Mr. George E. Poimenidls and Mr. Christos S. Agafoopoutos. 43 Pancpistimiou Street, 
Athens 10564, telephone nos.: 326.61 13 and 326.61 11 fax no.: 326.61 18. 


BP fights to end ban 
on Alaska oil exports 


The British company could benefit by 
$100m if allowed to sell crude to Japan 


By George Graham in 
Washington and Robert 
Canine to London 


The battle to lift a 20-year ban 
on exporting oil from Alaska is 
about to break out again. 

The ban was imposed by 
Congress in the aftermath of 
the 1973 Arab oil embargo, 
when the US was loathe to do 
anything that could increase 
its dependence on foreign otL 

A repeal of the ban would 
improve revenues for both the 
state of Alaska and the main 
oQ producers in the state, the 
biggest of which is British 

Petroleum. 

The Export Administration 
Act, one of four overlapping 
statutes that implement the 
ban, is due to expire at the aid 
of June. Senators Frank Mur- 
kowski and Ted Stevens of 
Alaska are expected to use the 
debate to try to persuade Con- 
gress to allow North Slope oU, 
which accounts for nearly a 
quarter of the US's 6.6m bar- 
rels a day oil output, to be 
shipped to Asia. 

Preliminary results of an 
Energy Department study, 
tend to support an end to the 
ban. The study reportedly 
shows a gain of 6,000 jobs in 
the Alaskan and Californian otl 
industries, largely by encour- 
aging Californian producers 
who are now swamped by Alas- 
kan oiL 

The study also shows an 
increase In federal royalties 
and taxes of S284m. and no sig- 
nificant impact on petrol prices 
in California. Although lifting 
the ban Is likely to push up 
west coast crude prices by 
about $1 a barrel, officials 
believe Californian refiners, 
who enjoy wider margins than 
elsewhere In the US, would be 
able to absorb the increased 
cost. 

Another factor Is the stance 
of the seafarers’ trade union, a 
traditional supporter of the 
ban because the Alaskan oil 


must be carried in US built and 
flagged ships with US crews if 
it is shipped to another US 
state. 

The union is apparently 
ready to agree to a deal with 
BP as long as any exports are 
carried * la US tankers, 
although they have yet to pub- 
licly announce this. 

BP, unlike Arco and Exxon, 
the two other major Alaskan 
producers, has no refinery on 
the US west coast, so it must 
either sell to independent refin- 
ers in the glutted California 
market or face additional pipe- 
line costs through Texas or 
across Panama to reach Gulf 


US energy 
security 
concerns have 
diminished 


coast refineries. 

It would like to sell Us Alas- 
kan oil to Japan, or at least 
have that option to strengthen 
its hand in price negotiations 
with the Californian buyers. 

Analysts suggest BP could 
gain around Sioom a year from 
the lifting of the ban, through 
a combination of lower trans- 
port costs and higher prices. It 
costs about S2 a barrel for BP 
to ship Alaskan oil to Gulf of 
Mexico refineries, compared 
with about $1.25 a barrel to the 
VS west coast or Asia, 

Arguments about US energy 
security, strong when the ban 
was first Imposed, have dimin- 
ished, and the idea of making a 
dent in the US trade deficit 
with Japan remains appealing. 

BP is also likely to have 
argued that lifting the ban 
would encourage it to invest 
more in expanding Alaskan 
production. 

But the bun still has a strong 


coalition of supporters. . 

Environmentalists were 
instrumental in the first baa, 
which was Imposed as a quid 
pro quo in Congress's approval 
of the Trans-Alaska Pipeline. 
They fear that allowing 
exports of North Slope' oil 
could add to pressure to 
attract oil within the Arctic 
National Wildlife Refuge - 
although some orargy nftMels 
argue that It might reduce 
pressure on ANWR by encour- 
aging p r o du ce r s to invest more 
in existing fields. 

And although the seafarers 

appear to have been won over, 
not all maritime Interests are 
in fevour. Shipyards fear that 
tanker owners might repair 
their vessels tn Asia, while toe 
Maritime Administration of the 
Transportation Department 
disputes the analysis of job 
gains and losses In the Energy 
Department report 

The opposition of indepen- 
dent refiners in California !* 
reinforced by that of two Of the 
principal outlets for the west 
coast oil surplus: the Trans- 
Panama pipeline, built to ban* 
die oil shipped to refineries 
along the Gulf (toast but now 
coping with just a fraction of 
Us former throughput and toe 
Hen refinery in the US Virgin 
Islands, which receives about 
lOOfiOO barrels a day ot North 
Slope crude: 

State Department officials 
have voiced concern at the pro 
tectlonlat Implications of 
enshrining BP’S deal with too 
seafarers union in law, white 
some Commerce officiate are . 
concerned about putting an 
avoidable hurdle in the way of 
the rene.wal of their Export 
Administration Act 

If, however, the Energy 
Department study emerges 
more or kiss' intact from the 
process of Inter-agency review, 
it could lend powerful amsunu’ 
tion to the Alaskan senators to 
next month's battle. 

Lex Column, Page 26 




Japanese Inflation sank again 
tost ipoatiL foiling to 05 per 
cent a year from 1.3 per cent in 
March. 

Meanwhile government fare- 
casters admitted that they still 
could not m the bottom ct toe 

The tn/tatton figure te In fine 
with market expectations, but 
adds fresh weight to tears that 
the economy is on the brink (X 
deflation. The slowdown has 
continued into May. according 
to figures tor Tokyo consumer 
prices, up 0,6 per cent this 
month, a a against <L8 per cent 
In April A reduction tn the 
rate & increase In home rents 
- a result of totting property 
values - was the main factor, 
said an agency official 

This is the latest tn a recent 
series of poor economic figures, 
which have caused official 
forecasters to soften earlier 
cautious suggestions that 
worst was over. Mr Yasushl 
Miens, governor of the Bank of 
Japan, yesterday maintained 
that “tbs basis tor movement 
tor recovery to being prepared" 
but admitted be was still seek- 
ing proof that the bottom had 
hem reached, 

Mr Toshto Terasawa, direc- 
tor general of the govern- 
ment’s economic planning 
agency, was even more cau- 
tious. "As of now we can’t see 
the bottom" and the economy 
remained in an "extremely 
severe” state, he said. 

Gerard Baker adds: Japan 
was the world's largest credi- 
tor nation in 1993 for the third 
consecutive year, according to 
a report from the country’s 
finance ministry. 

Net overseas assets grew for a 
12th year, to reach $6ULSbn at 
the end of 1993. up by 1&9 per 
cent on a year earlier. 


rUU s 
jf ^ 


South Korean economic 
growth will exceed 7 per cent 
this year with gross national 
product having risen by 8.8 per 
cent in the first quarter, the 
central bank reported yester- 
day, writes John Burton In 
SeouL 

The economic recovery after 
two sluggish years Is being led 
by industrial Investments, 
which Increased by 20.2 per 
cent in the wake of export 
growth on the back of the 
weak Korean won. 




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V'i 5 ^ 

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•" »ir 


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. t* 
" * ' ■C.s 

1 — 1 ;' 


uite 


Nmth Korea? 

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>il export 

, ; I' 1 



NEWS: UK 


Differences emerge on Anglo-Irish blueprint 


By David Owen 

London and Dublin are at odds 
over whether the framework 
agreement they hope to com- 
plete for July's Anglo-Irish 
summit should contain an 
explicit commitment by Dublin 
to rescind its constitutional 
claim over Northern Ireland. 

Details of these differences 
emerged as Mr Albert Reyn- 
olds, the Irish prime minister, 
emphasised in a speech in 


Oxford that a settlement rnn«f 
win clear approval from the 
province’s nationalists as well 
as its unionists. 

The two sides have made 
good progress on the docu- 
ment, which is designed to 
help forge a durable political 
s e tt lement in the province by 
sp ur r in g political talks involv- 
ing Ulster’s main constitu- 
tional parties. 

But there are believed to be 
two potential stLcking-points, 


The first concerns Dublin's 
move away from its claim on 
Ulster, and the other is over 
whether the agreement rfinnid 
set out a specific blueprint for 
Northern Ireland’s future, as 
Dublin prefers, or simply pro- 
vide a starting-point for new 
talks, as London wishes. 

Speaking just 24 hours after 
an informal meeting at 
Downing Street with Mr John 
Major, Mr Reynolds said that 
consent was needed by “both 


traditions to a political frame- 
work that accommodates them 
both”. 

Just as Dublin had accepted 
that Irish unity could only 
come through consent, so 
unionists must accept that “if 
Northern Ireland is for some 
time to come to remain under 
the jurisdiction of the United 
Kingdom . . . then they too 
must win the consent of north- 
ern nationalists to the demo- 
cratic arrangements and struc- 


tures under which this will 
happen”. 

He added: “The total domina- 
tion of one community by 
another is no longer acceptable 
as a basis for being governed.” 

Hinting that Dublin may 
adopt a tough stance in behind- 
the-scenes on the frame- 
work agreement, Mr Reynolds 
argued that the two govern- 
ments* acceptance of the prin- 
ciple of consent had “implica- 
tions” for tiie 1920 Government 


of Ireland Act, as well as for 
Ireland’s constitution. 

Though Dublin would sup- 
port proposals for constitu- 
tional changes that “fully 
reflect” the principle of 
consent in Northern Ireland, 
the Irish Supreme Court had 
already decided that the 
articles enshrining its territo- 
rial claim were “fully compati- 
ble" with the country's obliga- 
tion in iTifpmartfmol law. 

But Mr Reynolds combined 


his tough defence of the inter- 
ests of northern nationalists 
with a strong condemnation 
of republican and loyalist vio- 
lence. If violence continued, 
then Sinn Fein’s quarrel would 
be “not only with the British 
government but with the rest 
of the Irish people”, he said. 

He called on unionists to tell 
loyalist paramilitaries that 
there was “no valid excuse or 
justification for continued vio- 
lence of any kind”. 


Cable 
company 
shrugs off 
float delay 

By Raymond Snotfdy 


TeleWest, the UK’s largest 
cable company, promised yes- 
terday that its decision to post- 
pone a flotation will not affect 
the speed with which it builds 
its cable networks. 

Mr Stephen Davidson. 

TeleWest finance director, said 
the company would spend 
around £20Qm this year build 
tog networks capable of provid- 
ing television and telephone 
services to between 350,000 and 
400,000 homes. 

“The rate will probably 
increase next year,” he rakf - 
The company, owned by TCI 
of Denver - the world’s largest 
cable operator - and US West, 
the American telephone com- 
pany. said it had postponed a 
flotation that would have vat 
ued the company at around 
£l.7bn “in the light of current 
stock market weakness". 

The company said it would 
return to the markets when 
conditions were more favoura- 
ble. Autumn is possible, but 
next year looks more likely. 

The company bad been plan- 
ning to sefl onjy a mtotorum 25 
per cent stake and was not des- 
perate for money. For instance, 
on Tuesday TeleWest com- 
pleted a £195m debt facility to 
pay for the construction of 
cable franchises to Scotland. 

Some industry specialists 
believed there could be as 
much as Qbn to the London 
syndication markets ear- 
marked' for cable construction. 

One reason that TeleWest 
bad wanted to float was to give 
UK investors the opportunity 
to invest in a US-owned cable 
company. 

The decision was the third 
cable flotation postponed this 
week - following General 
Cable and Comcast UK Part- 
ners. j ByAflsonSmWi 

There must now be doubt 
whether a further group, made 
up of Bell Canada Interna- 
tional and Jones Intercable, 
will be able to go ahead with 
plans for an offering. 

Mr Jon Davey, director of 
cable at the Independent Tele- 
vision Commission, was almost 
relieved yesterday that the flo- 
tations had been postponed. “I 
have been unhappy about 
some of the valuations. The 
prices were too far ahead of the 
performance of the industry." 

He did not believe that the 
flotation decision would affect 
investment or the speed at 
which cable networks would be 
built 

The latest figures from the 
1TC for the first quarter show 
modest gains by the industry 
this year. 

On April I the total number 
ctf subscribers was 642,000 com- 
pared with 611.000 on January 
L The penetration rate - the 
ratio of those who can sub- 
scribe to those who actually do 
- dipped sBghtly from 21.9 per 
cent to January to 21.5 per cent 
on April L In the first quarter 
of last year the ratio was 21-8 
per cent . 

The average penetration fig- 
ure hides considerable varia- 
tions. Birmingham, the most 
successful franchise to the UK, 
has a penetration rate of 
around 34 per cent 
The number of telephone 
subscribers to cable networks 
is growing much more rapidly 
than television subscriptions. 

The total has risen from 
314,000 to January to 377,000 to 
ApriL 


PM tells public 
to shop beggars 
to the police 


By Wor Owen, 

Parfiamantay Correspondent 

An effort to clear Britain’s 
streets of beggars was urged by 
Mr John Major yesterday. 

The prime minister called on 
the public to be “rigorous” to 
reporting beggars to the police. 
He painted oat that they could 
be fined up to £1.000 and jailed 
for up to three years if they 
resorted to violoice. 

Mr Major's blunt condemna- 
tion of tire tnrrftagfrng wirntmr 
of vagrants who regularly beg 
to London and other city cen- 
tres was fiercely attacked by 
political opponents and offi- 
cials of leading charities. 

Mr John Battle, shadow 
bnugmg - minister, said the gov- 
ernment should tackle the real 
problems of poverty and home- 
lessness. Withdrawal of bene- 
fits for people aged 16 and 17 
bad forced many young people 
on to the streets — and the 
benefits should be reinstated. 

Mr Charles Kennedy, presi- 
dent of toe liberal Democrats, 
denounced the prime minis- 
ter’s attack on the homeless as 
“an absolute outrage”. 

Mr Nick Hardwick, director 
of Centrepotat, toe young peo- 
ple's charity, said fining young 
beggars was daft “They simply 
have to beg to raise the money 
to pay it off again,” he said. 

“What offends people is not 
the beggars themselves, but 
that to one of the wealthiest 


countries to the world so many 
young people and others who 
cannot look after themselves 
should be forced to beg,” be 
added. 

However, Mr Peter Bottom- 
ley, Tory MP for Eltham, said 
he had encountered a man beg- 
ging for food who had diffi- 
culty walking because his 
pockets were ‘TuD of cash”. 

In an interview with the 
Bristol Evening Post, the prime 
mirirtar insisted that there 
could be no justification for 
people to be “out on the 
street”. 

Beggars ware an eyesore end 
could drive tourists and shop- 
pers away from dries. They 
caused offence to many and 
their activities were particu- 
larly damaging to areas depen- 
dent on tourism. 

Mr Major maintain wri that 
the social security system 
made begging unnecessary, 
and called on thorn* responsible 
not to shrink from enforcing 
toe rigorous penalties that 
were available. Asked if he 
fhougd people should report 
beggars to the police, toe 
prime minister replied: “Yes 
certainly, most certainly.” 

Dealing with the European 
elections, Mr Major criticised 
the concentration cm “person- 
ality politics" and artificial 
rows. “I will concentrate on 
the issues and the public will 
then make up their minds 
when they vote,” be said. 


V fffP ’ 





Last swan: David Swan, whose great grandfather founded Swan Hunter 120 years ago, severed the last family link with the shipyard 
yesterday when be lost Us job. The 54-year-old manager left the Tyneside yard with 141 other workers Photograph: Botrney news agency 


Red Star looks again for a buyer 


By Charles Batchelor, 
Transport Correspondent 

Red Star, British Rail’s express 
parcels company, was put up 
far sale for a second time yes- 
terday after a reorganisation 
intended to make it more 
attracti v e to bidders. 

The company was first 
offered for sale almost a year 
ago, but no satisfactory buyer 
was found and it was tnfrgn off 
the market to December. It has 


since shed 350 staff, all by 
voluntary redundancy, and is 
dropping two of its slower ser- 
vices. 

Red Star failed to find a 
buyer because of its large 
losses - £9m on turnover of 
£43m to 1993. The streamlining 
of its operations will not 
entirely eliminate toe loss, it 
said yesterday. 

“The objective is to show a 
business capable of being 
developed," Red Star said. 


“Now we know where we are 
going. The non-premium ser- 
vices were a mnigtnnp around 
Red Star’s neck.” 

Red Star is toe only UK par- 
cels carrier to use the British 
Rail network and has more 
than 200 outlets, mostly 
located to cor near railway sta- 
tions. 

Final bids must be made by 
July 31, with the aim of com- 
pleting a sale by toe end of 
September. 


Red Star is to concentrate on 
its same-day service and its 
9am and 10.30am next day- 
services. It will drop from 
today its noon and 5.30pm 
next-day services. 

Red Star is trying to retain 
its small-volume customers by 
increasing from £5 to £10 the 
discount for bringing a pared 
to toe depot This will apply 
over the summer. Large- 
volume customers negotiate 
individual contracts. 


Source 
of smear 
suspected 
in Ofgas 

By Robert Corzbie 

and Wim&m Lowto 


The search for the source of a 
smear campaign against Ms 
Clare Spottiswoode. director- 
general of the gas regulator 
Ofgas. has shifted to toe organ- 
isation itself. 

Suspicion that a disgruntled 
Ofgas official may be to blame 
comes after press reports alleg- 
ing that Ms Spottiswoode was 
having an affair with Mr John 
Micbell, a senior official of the 
Department of Trade and 
Industry who helped select her. 

The DTI investigated the 
allegations and said it had 
found no substance to support 
them. There was speculation 
this week about the source of 
the campaign to undermine Ms 
Spottiswoode in the run-up to 
her appearance on Wednesday 
before toe Commons commit- 
tee on the environment. 

Suspicion bad fallen on com- 
mittee members upset by her 
opposition to passing on to gas 
consumers the cost of conser- 
vation projects promoted by 
the Energy Savings Trust. 

There was also speculation 
that parts of the gas industry, 
including some “old guard” 
elements of British Gas. could 
have been involved. 

But Ofgas officials now 
believe toto the most damag- 
ing allegations are likely to- 
have come from a member of 
toe Ofgas staff. 

“We are trying to find out 
who has been leaking all this 
stuff. It's really unfortunate 
but we think it’s come from 
within Ofgas,” said one official. 

Ms Spottiswoode, who took 
over from Sir James McKinno n 
last November, has replaced 
Ms combative, adversarial 
approach to British Gas with a 
more measured line. 

Ofgas officials who were par- 
ticularly close to Sir James are 
thought to be unhappy with 
the change in emphasis. 

They are also likely to have 
reacted badly to Ms Spottis- 
woode’s now withdrawn allega- 
tion that Sir James acted ille- 
gally in implementing whamw 
connected to. toe trust 

Ofgas officials say no formal 
Inquiry is yet under way. 


Bank staff set to reach 
lowest total since 1985 


Staff working for big British 
banking groups are likely to 
foil this year to the lowest total 
since 1985, British Bankers' 
Association figures suggest 
The total number of staff at 
the nine ipaiting banks is 
expected to be below 300.000 
this. year, compared with last 
year's 300,100. 

Part-time jobs are assuming 
greater importance, with their 
numbers remaining reasonably 
stable - around the 46,000 
mark - but rising by 500 
between 1992 and 1993. 

The figures also give a dear 


picture of how the high street 
banks operate, showing a 
decline in the number of 
branches and an increase 
in the number of cash 
machines. 

Almost 1L500 branches were 
operated last year by the nine 
banking groups covered by the 
statistics. This is the lowest 
total since 1963, when the 
annual figures were first 
collected. 

The rate of closures has 
fallen, however, since the 
sharp drops of 500 ot 600 a year 
over the past few years. 

Within the overall total. 
Abbey National and National 


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Westminster Bank increased 
their numbers of branches 
slightly. Co-operative Bank 
and Yorkshire Bank also 
extended their branch 
networks to a limited 
degree. 

The number of cash 
machines has already 
significantly outstripped the 
number of branches, and for 
the high street banks could 
well exceed a total of 15,000 
tins year. Co-operative Bank, 
whose cash machine total rose 
from 89 to 119, had one of toe 
biggest increases. 

Customers' use of bank 
services Is also reflected in the 
figures, which reveal that the 
use of overdrafts is still foiling 
while the proportion of 
longer-term lending by 
individuals and companies 
continues to rise. 

Use of plastic cards as a form 
of credit has continued to 
increase, toe association says, 
perhaps to some extent as a 
result of the declining use of 
overdrafts. 

The growing use of debit 
cards has been even more 
striking: the value of retail 
transactions in which they are 
used rose from £L7bn in 1988 
to £17gbn in 1983. 

The figures also confirm the 
banks’ success in gaining 
mortgage business last year, 
showing that they won almost 
50 per cent of UK net mortgage 
lending last year - about twice 
the 1983 proportion. 

Annual Abstract af Banking 
Statistics. Statistical Unit, 
British Bankers’ Association, 10 
Lombard Street, London BC3V 
3EL £15. 


Support for workplace healthcare 


BytianM Green 

_ minority of Britons 
l -be prepared to pay for 
centres in tbs work- 
i -receive drugs by mail 
^and pay for advice and 
foam pharmace uticals 
, a survey says. 

— poll of 2JH7 adults 
ated- widespread sympa- 
I tentative ways of 

s 

. . _ , a health- 
at Boston Con- 
. _J management coa- 
~ “ The survey 

fonufa itapfy that in spite of 
c< ?y no My perceived ^public 
mistrust , df pharmace uticals 



companie s, a s ig n ifi ca nt num- 
ber of people would be pre- 
pared to buy care from them 
directly. 

“It also implies that people 
are prepared to have the kind 

of care that has been shown to 

dramatically cut costs. There 
are examples where computer- 

aided education for asthmatics 

dramatically cut hospital 
admissions.” ' 

Respondents were asked 
about a healthcare practice 
that is gaining acceptance m 
the US. in which a pharmaceu- 
ticals company offers a range 
of services such as tdephone 
help lines, free consultations 
with doctors and free supplies 


in return for an annual fee. 
Forty pea- cent said they would 
be interested in such a service 
and 51 per cent not interested. 

Forty-five per cent raid they 
would rather stay, undergo 
operations or receive medical 
assistance at an employer- 
based centre than at a hospital. 
Forty-cue per cent raid they 
would not 

If both the workplace centre 
and toe local hospital were 
offered, 71 per emit would 
choose to he treated at work. 

Asked what they would 
choose If the employer-based 
centre asked for a £80 payment 
for a visit, 29 per cent said they 
would still prefer it and 65 


per cent said they would not 
Mafl order of drags, rather 
than collection from a phar- 
macy , was also popular wife 41 
per cent, who said they would 
rather have supplies delivered; 
38 per cent said they would 
not. Mailorder drug defivay is 
a last-growing part of the US 
healthcare system. 

Previous polls have shown a 
'high level of satisfaction with 
the National Health Service 
but had not offered alterna- 
tives, said Ms Shaw. 

She added that if allowed, 
direct conannateatioa between 
companies and patients 
Id lead to ‘‘a demand-led 
doctor-patient relationship”. 


All Steps 

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Foreign Office minister breaks ranks to criticise threat to sovereignty 

Kohl stokes up EMU dispute 



A European constitution is as impending 
and evil political reality which seeks to 
hijack partnership among nations into a 
rightly knit political and economic bloc, 
Mr John Bitten, the former Conservative 
cabinet minister, warns in The European 
Journal, the Earo-sceptic monthly, 
David Owen writes. 

Mr Bitten says such a constitution 
would be preventable “only if the most 
vigilant arguments" were continually 
deployed. ea Tfc determined search for a 


centralised Europe, with a comrito rion 
that farther erases national ^unn—ff, 
is no longer an Heafistic search for the 
boh gran of peace and co-operation. It 
is a contest about power and pay-off.” 

Mr BiD Cash, the arch Euro-sceptic 
Co ns ervative MP, presses the case far a 
new referendum on Europe. Hr says 16a 
of the present UK electorate did sot take 
part in the 1975 re fe r endum on member- 
ship and a new refe rendum would sot be 
ipeoasgtent with con stituti o na l practice. 



Light load: Noble Lifter, one of the world's largest floating 
cranes, dings ashore the Inner Dowsing lighthouse at Lowestoft 
The 200ft structure, which was 12 miles off the coast of Mabto- 
thorpe. Lincolnshire, cleared the harbour by 13ft on each side 

Prisons broaden 
business horizons 


By PtiSp Stephens 
“Hti Nor Owen 

An unexpected intervention by 
Chancellor Helmut Kohl of 
Germany yesterday threatened 
to reopen the divisions in the 
Conservative party over Brit- 
lsh participation in a single 
European currency. 

At Che end of the first week’s 
campaigning for the June 9 
European elections, Mr Kohl 
flatly contradicted the judg- 
ment of Mr John Major that 
economic and monetary union 
is now a remote prospect 

That to turn prompted Mr 
David Heath coat-Amory, the 
foreign office minister respon- 
sible for Europe, to break with 
the government’s formal neu- 
trality on the issue. He warned 
that a single currency would 
undermine British sovereignty. 

Echoing controversial 
remarks made this month by 


By Janies Blitz, David Owen 
and Ivor Owen 

Labour claimed yesterday that 
Its twin agenda of “jobs and 
social justice’' would provide 
better living standards for 
working people, as the focus of 
its European election cam- 
paign moved to the social 
chapter of the Maastricht 
Treaty. 

Mr John Prescott, shadow 
employment secretary, out- 
lined his party's “positive 
approach" to the social chap- 
ter. arguing that it would 
guarantee Britons “the basic 
rights and standards enjoyed 
by every other worker in 
Europe”. 

As the first week of the 
Euro-election campaign drew 
to a close, Mr Prescott inter- 
wove his call for social justice 
with another powerful attack 
on the government’s economic 
policy. 

He accused the Conserva- 
tives of resurrecting “the five 
great evils" outlined by Sir 
William Beveridge, the pio- 
neer of tiie welfare state, 50 
years ago - idleness, want, 
disease, squalor and igno- 
rance. 

However, in spite of calling 
again for full employment and 
a minimum wage, the shadow 
employment secretary was 
careful not to be drawn too 
closely on how these goals 
would be implemented. 

He said the exact formula by 
winch Labour would calculate 
a minimum wage was “under 
constant review”. On the issue 
of full employment, he said 
that the first aim of a Labour 


Mr Michael Portillo, the Euro- 
sceptic chief secretary to the 
Treasury, Mr Heathcoat-Amory 
said the replacement of ster- 
ling would “dilute" Britain's 
national identity. 

Making little effort to dis- 
guise his own distaste for the 
idea, he added: “The Foreign 
Office view is that the time- 
scale laid down in the Maas- 
tricht treaty - the two trigger 
dates of 1997 and 1999 - is 
unrealistic.” 


government would be to 
reduce the jobless total. 

Labour’s approach to the 
social chapter is similar to 
that outlined by the Liberal 
Democrats earlier this week, 
in which they argued that the 
government’s lone refusal to 
sign was losing the UK money 
that would otherwise have 
been available for training. 

Mr Alex Carifle, Liberal 
Democrat employment spokes- 
man, has said that the social 
chapter mates it “absolutely 
dear that there are hundreds 
of millions of pounds available 
specifically for the relief of 
unemployment and for train- 
ing". 

Mr Carlisle said last week 
that these funds could be “tar- 
geted on areas of most need.” 
He said Britain was contribut- 
ing to the social chapter in 
any case and the government 
was being “incredibly cussed". 

Yesterday, Mr Alan Berth, 
Liberal Democrat Treasury 
spokesman, widened the scope 
of that attack. He said funds 
intended to help the unem- 
ployed were being blocked 
because of an unresolved pol- 
icy dispute between Britain 
and the European Commis- 
sion. 

Mr Beith said the govern- 
ment’s insistence that regional 
structural foods be concen- 
trated on helping unemployed 
people was at the heart of the 
controversy. The European 
Commission maintained that 
priority should be accorded to 
plans for training people 
already in jobs. 

He called on the government 
to “sort this mess out”. 


His comments contrasted 
with the studied neutrality on 
the issue in the Conservative 
manifesto, which leaves a deci- 
sion on a single currency to a 
future parliament, and with 
the view of Mr Kenneth 
Clarke, the chancellor. Mr 
Clarke, a supporter of mone- 
tary union, said tills week he 
expected the issue to return to 
the European agenda. 

Mr Kohl said on BBC televi- 
sion that he remained firmly in 


Liberals have long understood 
how to campaign in Cornwall 
Now the Liberal Democrats 
hope to win C o r n wall’s seat in 
the European parliament using 
the brand of populism typified 
by the late David Penhaligon, 
who “stood up for the Cornish” 
against London as MP for 
Truro from 1974 until 1986. 

Their candidate. Mr Robin 
Teverson. a 42-year-old trans- 
port consultant, has cam- 
paigned almost full-time for 
five months, backed by heavy 
funding and a stream of 
national party figures. He 
could well defeat Mr Christo- 
pher Beazley, Conservative 
ME? for 10 years. 

liberal Democrats captured 
Cornwall County Council last 
year and gained five wards in 
Penwith District Council in the 
county’s only local elections 
this month. 

The party holds two of the 
county's five parliamentary 
seats, and its Eurocampaign is 
designed to help defeat Corn- 
wall's three Conservative MPs 
at the next general election. 

Cornish politics are different 
Campaigners for a single local 
authority for Cornwall say 
today’s county was a separate 
domain until the I6th century. 
The ancient Mappa Mundi in 
Hereford Cathedral, they say, 
divided Britain into four 
realms - England, Scotland, 
Wales and Cornwall. 

The county has its own 
nationalist party - Mebyon 
Kamow, fielding a candidate in 
the Euro-election - and its own 
language. 

Unlike neighbouring south- 
western counties, Cornwall has 
an Industrial past, to which 
china clay heaps and disused 
tin mines bear testimony. 
Socially and politically, Corn- 
wall is at least as close to Scot- 
land as it is to Devon. 


favour of a single currency. 
The target dates set out in 
Maastricht were not sacrosanct 
but “It will come, I have no 
doubt at aD." He said many of 
those who focused on particu- 
lar dates wanted to wreck the 
project. 

By contrast. Mr Major indi- 
cated that he H«w» ght a single 
currency was unlikely in his 
lifetime. 

Mr W illiam Cash, a promi- 
nent Euro-sceptic on the Tory 


John Authers 
finds fond 
memories of 
an MP who 
defied London 

Water is the campaign’s hot- 
test issue. South West Water 
charges 50 per cent more than 
the national avenge, thanks to 
a costly coastal clean-up cam- 
paign. The Liberal Democrats 
gleefully refer to the issue as 
“Cornwall's poll tax". 

The likely introduction of 
differential charges for gas - 
given Cornwall's distance from 
the North Sea - also arouses 
anger. 

Local Conservatives 
acknowledge the water issue is 
damaging them, and want a 
national water levy to reduce 
bills far the South-West 

Rail services are also emo- 
tive. The Cornish fear that, in 
future, trains from London ter- 
minate at Plymouth - two 
hours from Penzance. 

The government's “Days at 
Sea" policy, which temporarily 
prohibited fishermen from 
going to sea on specific days, is 
another Liberal Democrat 
issue. 

The policy was introduced to 
implement European rales to 
stop over-fishing, hut by limit- 
ing fishing to certain days - 
when the weather might be 
dangerous - Mr Teverson 
claims Westminster was put- 
ting sailors' lives and liveli- 
hoods at risk. 

European funds are taken 
seriously. The comity council 
opened an office in Brussels to 
lobby for funds in 1988 - the 
first UK local authority to do 
so - and maintains European 


backbenches, accused the Ger- 
man leader of meddling in 
Britain's domestic affairs. 
‘This is also as unwarranted 
interference in the British 
European elections and is in 
support of Liberal Democrat 
and Labour policy an a single 
currency." 

But the opposition parties 
accused the government of fry- 
ing to disguise its Internal divi- 
sions by keeping Mr Portillo 
and other cabinet Euro-scep- 
tics on the sidelines during the 
European election «?nT»pflig n_ 

Mr Jack Straw. Labour's 
campaign manager, said that 
Mr Portillo. Mr Peter Lllley 
and Mr John Redwood were 
being deliberately excluded 
from the campaign. 

Mr Alan Beith. Liberal Dem- 
ocrat Treasury spokesman, 
said the government would be 
"crazy" if it sought to exdude 
Britain from a angle c u rrency. 


liaison staff. Their money 
helped fund the ambitious new 
Tate gallery in St Ives. 

However, Conservatives are 
not giving the seat up easily, 
with Mr John Major making an 
appearance in St Mellion, east 
Cornwall, earlier this week. 

The incumbent MEP. Mr 
Beazley, says predictions of 
Liberal Democrat gains come 
from the London media who do 
not nuriorsfemd the difficulties 
of camp ai gning in the area. 

He claims that Mr Teverson 
has no experience of Europe, 
and could not replicate the 
contacts that have taken 10 
years to build. Tories also 
riaim the Cornish vote for can- 
didates they trust personally, 
regardless of their politics. 

Sir Beazley avoids the gov- 
ernment’s record, concentrat- 
ing instead on Europe and bis 
experience. His posters do not 
indode the word “Conserva- 
tive". 

Tories point to Mr Tever- 
soxt’s (Meat, by the Conserva- 
tive Sir Robert Hicks in South- 
East Cornwall in the 1992 gen- 
eral election. 

They also believe that the 
Liberal Democrat om pfram; on 
local and national Issues for a 
European election will back- 
fire. 

The angry words of one man 
Mr Teverson met on the street 
in the day-mining town of St 
Austell showed that the Lib- 
eral Democrats still have to 
look beyond local issues: 

He said; “I saw your first 
pamphlet and it never men- 
tioned Europe once. I never 
saw the word Europe.” 

But another who shook Mr 
Teverson's hand in St Austell 
said: “You’ve got my vote just 
because of David Penhaligon 
all those years ago. He was a 
great guy and he was a great 
Comishznan." 


By tan HamHton Fazey, 
Northern Correspondent 

Prisons are making their 
contribution to improving 
Britain's balance oT payments 
by making goods previously 
imported into the country - 
and helping change attitudes 
to work among staff and 
inmates. 

A new climate is encourag- 
ing higher pay and longer 
working days while making a 
growing contribution to prison 
running costs. 

Straugeways prison in Man- 
chester - refurbished at a cost 
of £80m after being almost 
destroyed four years ago in 
Britain’s worst prison riot - 
yesterday announced a 35-hour 
working week for prisoners. 

The prison has negotiated a 
contract with a Warrington 
company to make 2,000 poly- 
propylene bulk containers a 
week, undercutting a supplier 
in Turkey. Import substitution 
is one way to expand output 
without arousing allegations of 
cheap prison labour undercut- 


ting outside suppliers and 
destroying local jobs. The con- 
tainers - used far moving 
granular or powder products In 
palletised loads - are to be 
marketed throughout Europe, 

Other Strangeways prisoners 
carry out upholstery for a local 
fUrnituro company which used 
to buy finished products from 
France; now it imports the 
wooden frames, which are com- 
pleted in the prison workshops. 

The Strange ways laundry 
has so many orders that Mr 
Pat Smith, the manager, soys 
he is starting double-shift 
working. Customers include 
restaurants in Manchester’s 
Chinatown, an industrial 
cleaning company in Bury and 
Bamardos children's homes. 
Charities get the service free; 
paying customers are charged 
SOp a kilo, plus value added 
tax. The prisoners earn as 
much as £10 a week. 

There is another reward for 
co-operative behaviour at 
Strangeways - a television set 
in the cell, which must be paid 
for from prison earnings. 


Exchange 
to buy 
big stake 
in Crest 

The London Stock Exchange 
board has voted to tacoma one 
of the largest shareholders in 
Crest, th* Bask of England's 
proposed system for paperless 
share settlement, partly In 
hope of taBuffirtng the design 
of the prefect, Norma Cohen 
wr ites. 

The Tier 1 state, which 
couM cost up to £780.000. will 
give the Stock Exchange a 
Crest aharahohttPg of up to 10 
par cent There are to be four 
tiara of afcaretaoldbus. 

The Great board will consist 

of Bank of Ragland appointees 
during the design phase, but 
shareholders trill be entitled to 
influence a “shadow board" 
which wm be allowed to mate 
some key derisions. 

The Bank sat up a team to 
develop Crest following the col- 
lapse of the Stock Exchange 's 
Ul-fatad Taurus paperless share 
settlement pngact, intended to 
replace the existing Talisman 
system. Since than, the Stock 
Exchange has been seeking a 
role for itself in equities settle- 
ment Whan Crest is fuUy oper- 
aticmnl, the Exchange may 
have no rail to settlement. 

Imre joins probe 
of options fraud 

Imro. the self-regulating body 
for the fund management 
Industry, has become Involved 
to a transatlantic investigation 
of a suspected options fraud 
which may have resulted in a 
loss of mote than *90m 
(£59 Jim) to investors. 

Imro said last night that it 
had been "liaising closely" 
with enforcement mid regula- 
tory authorities to the UK and 
overseas investigating the 
alleged fraud involving the 
activities of Mr William W. 
Dunn, a US-based commodities 
broker and Us company. Delta 
Consultants. Earlier this week 
It emerged that the broker and 
the company were the subject 
of an Investigation by the Seri- 
ous Fraud Office, the FBI and 
the US Commodity Future 
Trading Commission. 

to its report on cases under 
investigation, the SFO says 
that Delta Consultants solic- 
ited funds for the purpose of 
investment In currency fixtures 
through the agency of AP 
Black, a member of Imro. 

Has SFO said last night tint 
AP Black remained part of the 
inquiry into Delta Consultants, 
but It was not prepared to say 
whether AP Black itself was 
being investigated. Imro does 
not comment on investigations 
unless they result to disciplin- 
ary action against members. 

AP Black has been unavail- 
able for comment all week. 
However Mr James Todd, a 
director, said last night “There 
Is no evidence of any wrong- 
doing by AP Black." 

Fraud civil servant 


Labour shifts 
poll focus to 
social chapter 


Lib Dems hope to cash in 
on Penhaligon legacy 



Tourist interest in 
gardens increases 


Museums are losing their 
appeal as tourist attractions 
while gardens have benefited 
from an increase in visitors, 
the British Tourist Authority 
said yesterday. 

Numbers visiting UK muse- 
ums and galleries fell 1 per 
cent last year, but visits to 
gardens rose by 6 per cent 
Hampton Court in south- 
west London was the most 
popular garden with Llm visi- 
tors to 1993. 

The Alton Towers theme 
park in Staffordshire topped 
the table of visitor attractions 
that charge for admission with 
2.6m. Second was the London 
waxworks museum Mad ame 


Tussaud’s (2.4m) and third 
was the Tower of London 
(23m). The top two, and sixth- 
placed Chessington World of 
Adventures, are owned by 
Pearson, owner of the Finan- 
cial Times. 

Visits to leisure parks were 
up 4 pm- cent compared with 
1992, while workplaces - such 
as whisky distilleries and the 
Cadbury’s World chocolate fac- 
tory - were up 5 per cent 

The most popular attrac- 
tions in terms of numbers 
were Blackpool Pleasure 
Beach and the Wembley Sta- 
dium complex in west London 
which each had 6.75m visitors 
last year. 


Britain** tap 20 a tt i ariipM . 

MKkms of vfafexs test year 


Atton Towns 
toKfwnalUssauriV 
Tower of London 
StPauTaCathednA 
Natural History Museum 
Chwstneton Adwmure Wtarid 
Thorpe Park 
Science Museum 
Blackpool Tower 
Drayton Manor Park 
Edinburgh Caste 
Flamingo Land 
Kw Gardens 
- - Royal Academy 
Roman Baths, B«n 
London Zoo 
Chester Zoo 
Windsor Caslto 
American Adventure 
JorvSkVMng Centro 

bta 



sued by government 

The government last night 
issued a writ against Mr Gor- 
don Foxley - the former Minis- 
try of Defence civil servant 
jailed this week for taking 
bribes - “and others" to an 
attempt to recover millions of 
pounds. 

Police have said that only 
£500,000 of the bribes from for- 
eign arms companies that Mr 
Foxley channelled into Swiss 
bank accounts has been traced. 

School tests failure 

The government's national cur 
riculum tests were carried out 
to full in. only. 8.7 per emit of 
secondary schools to England 
and Wales this year, according 
to a survey by the Secondary 
Heads Association. A boycott 
by the NOT teachers' union 
meant no tests were taken In 
612 per cent of schools. 


Three bootleggers jailed 
for cross-Channel racket 


Three men who ran a 
cross-Channel smuggling ring, 
selling cheap French beer, 
wine and champagne in 
Britain, were jailed yesterday. 

The men were the ringlead- 
ers of an u-man gang which 
made at least 42 trips on the 
Dover- Calais ferry to three 
months. Cardiff drown Court 
was told. 

Vanloads of cheap drink 
were brought into the country 
and sold illegally at Sunday 
markets and corner shops to 
south Wales. Two undercover 
teams of Customs 'officers 
tracked vehicles between Kent 
and Cardiff to an operation 
codenamed Chancer. Eleven 
men ad m itt ed their part in a 
conspiracy to evade paying 
duty on beer and spirits. 

Mr Roger Thomas QG, prose- 


cuting, said it was estimated 
that £70,000 of unpaid duty was 
Involved between January and 
April last year when the gang 
was operating the ring. Cases 
of beer, wine and champagne 
were brought to a rented ware- 
house to Cardiff before being 
distributed to traders. 

“It was a fairly slide opera- 
tion," said Mr Thomas. 

Mr Ricardo Nichols, a former 
market trader, Mr Richard 
Spencer, a shopowner and 
licensee, and Mr Raymond 
Tout, were jailed for terms of 
nine, four and three months 
respectively. Judge Michael 
Burr said the gang had used 
“an army of helpers” to an 
organised conspiracy to flout 
the law and try to make easy 
money. He ordered six other 
men to carry out community 


service and conditionally’ dis- 
charged two others who had 
played a lesser role, 

After the case Customs 
Investigators said that the 
gang made up to four cross- 
Channel trips a day, mainly to 
a hypermarket near Calais. 
The gang went into business 
only three weeks after the new 
Customs laws came into force 
on New Year's day last year. 

The investigators added: “We 
hope these jail sentences will 
be a big deterrent to help 
tackle this widespread crime 
which is causing concern to 
the retail industry.” 

Two weeks ago, three boot- 
leggers from Wolverhampton 
were jailed for six months after 
admitting evading duty on 
beer, wine, spirits and ciga- 
rettes worth more than £73,000. 


PERUVIAN INVESTMENT 
COMPANY 

Socictu d'lnvcstisscmcnt & Capital Variable 
Registered Office: Luxembourg, 14, rue AJdringen 
Commercial Register; 

Luxembourg Section B 43.274 

Notice of the Second Annual General Meeting of 
Shareholders 

No shares havtog been present or represented at the Statutory 
Annual General Meeting of shareholders of PERUVIAN 
INVESTMENT COMPANY, SICAV a second meeting will be 
held at its registered office in Luxembourg, 14, ore AJdringen, on 
6th June. 1994 of 1 1.00 o’clock for the purpose of considering 
and voting upon the following matters: 

1) To hear and accept 

al the management report of the directors; 
b) the report of the auditor. 

2) To approve the statement of net assets and the statement of 
operations and changes In not assets tor the year ended 31st 
December, 1993. 

3) To discharge the directors with respect to their performance 
of duties ounng the year ended 31st December, 1993. 

4) To elect the directors and the auditor to serve until the next 
annual qeneral meoting of shareholders. 

5J Any other business. 

The shareholders are advised that no quorum for tho second 
general meeting is required and that decisions will be taken at 
the majority of the shares present or represented at the meeting. 

Tl\o Board of Directors 




m 




In the week of 
27 June 1994 
the Financial 
Times 

will publish its 

ANNUAL 

REPORT 

SERVICE 

to 1993 companta reMMrt 

an avereo* at 122* report 

r*qu*sh from rropohd#nti fn 
93 counM«i wortd-wkta. 
Noorty of »h#re wquKt* 

cam# Own e«*f 
W marwtfrtQ dfcetors 
would uw m* report rex 
Puttie* 

10 roach iftb wgrtytolMtoW 
aixtorw* try adwrfttfo vow 
company* rooor* to ft* v*“ 
hiulufo otaaMcdtEfbOMth 
Vaughan oit Tel: +44 ?l 073 
42W. Fan. 71 WlSteS* 
vaur luuat financial Tin**® 
roDiiwnMitw*'' 

" '■ ?"» — =>8Sm 





FINANCIAL TIMES WEEKEND MAY 28/MAY 29 1994 



The General Motors Team proudly recognizes its 
1993 Worldwide Suppliers of the ’'fear. 



l " ,n ' joins to 
"PliwisSj 



h.uni.-mfc 
V.J h? *" l!r 





1993 SUPPLIERS 
OF THE YEAR 

ABC Coke Div. of Drummond 
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.EM. 

Andreas Maier GmbH & Co. KG 
AP Technoglass Co. 

Ameses Electricos Automotrices, 
SAdeGV 
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. 

Carelio iibec 
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 
Delco Chassis Division 
Delco Electronics Corporation 
Delco Remy Division 
Draftex GmbH & Co. KG 
DSMN.V 

Durr Industries, Inc. 

DynoplastA/S 

E&R Industrial Sales, Inc. 

Edag 

EDS 

Edscha GmbH & Co. KG 
HthSA 
Emaifclnc. . 

F+G Megamos 
FaitalSpA • 

Fichtel& Sachs 
Fort Wayne Foundry 
Corporation 

Fortney Eyecare Associates 
G.TD. 

Gail & Rice Productions, Inc. 
Gebr. Heller GmbH 
Gentex Corporation 
Georg Fischer 
FahrzeugtechnikAG 
Gerhard Rauch GmbH 
Giddings & Lewis, Inc. 
Gillet-Leistritz Group 
GonzalesDesign Engineering 
Goodyear Tire & Rubber Co. 
Halberg Guss GmbH 
Harrison Division 
Hemmelrath Lackfabrik GmbH 
Henniges GmbH & Co. KG 
Hitachi 

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

Iberofon Plasticso, SA 
Imatra Kilstra AB 


INA Bearing Co., Lie. 

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 PiakCorp. 
KolbenschmidtAG 
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, SAdeC.Y 
Niagara Machine Products 


General Motors. 


Nippondenso Compressores Ltda. 
Olofstrom Automation Ltd 
Qmer Manufacturing 
Packard Electric Division 
Patricio lioi & Cia. 

Petri AG 
Plastic Omnium 
Polycom Huntsman, Inc. 
Precision Exhaust Ltd 
Print Consortium 
Landstroem/Strokiiks 
Rapid Design Service, Inc. 
Rassini, SAdeC.V 
Rautenbach Guss Wemigerode 
GmbH 

Regional Die Casting Ltd 
Robert Bosch GmbH 
Rockwell international 
Corporation 
Ronal Iberica S A. 

Roth Fibres sa 
ROULUNDS Fabriker AS 
RSL Espana S A. 

S. Scherdel GmbH 
San Francisco S.LE. 

De Artes Graficas 
Saturn Electronics 
SidmarN.V 
Siegel-Robert, Inc. 

Siemens AG, Bereich 
Automobiltechnik 
SKF 

SNRRoulements 
Sommer-AUibert 
South Charleston 
Stamping & Mfg. 

Spartan Aluminum Products, Inc. 
SplintexSA 
Superior Industries 
International, Inc. 

ThvoILda. 

The Torrington Co. 

Titan Sendees, Inc. 

Valeo 

VDO Adolf Schindling AG 
W W Grainger, Inc. 

Western Foundry Co. Ltd 
Weston Engineering 
Willenborg GmbH & Co. KG 
Woodbridge Foam Corporation 
Xerox of Canada 
Zanussi Components Plastica spa 


Creating exciting products and enthusiastic customers by working together 




FINANCIAL TIMES WEEKEND AV M/MAY 29 1994 


FINANCIAL TIMES 

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

Saturday May 28 1994 


Removing the 
punch bowl 


It i/s the job, so the adage goes, of 
a central bank to take away the 
punch bowl just as the party 
becomes lively. That is precisely 
what Mr Alan Greenspan’s Fed- 
eral Reserve has managed to do, 
even though many American poli- 
ticians and economists have faile d 
to recognise the achievement But 
what about the Germans? They 
are apparently thinking of remov- 
ing the bowl before the guests 
have taken off their coats. 

That the Federal Reserve has 
judged things rather well was con- 
firmed by yesterday's release of 
the revisions to US gross domestic 
product for the first quarter. The 
annualised growth rate had been 
initially estimated at 2.6 per cent 
This has now been raised to 3 per 
cent contrary to market expecta- 
tions, which were for the growth 
rate to be revised downwards, to 
2J3 per cent 

Last week's half a percentage 
point increase in the US discount 
rate looks even better judged now 
than it did then. The Federal 
Funds rate is a little under 4% per 
cent 114 percentage points above 
whera it was in early February. 
This increase must be judged the 
least that can be justified, given 
what has been happening to the 
US economy and bond markets. 

US and German short-term 
interest rates have been converg- 
ing since the aut umn of 1992, 
when the gap was 6.7 percentage 
points. But even now, after a tiny 
reduction this week, the Bundes- 
bank's repurchase (or “repo") rate, 
at 5.2 per cent, remains more than 
one percentage point above the 
Federal Funds rate. A visitor from 
Mars, looking at the two econo- 
mies and the two rates, would 
surely be puzzled. 

The US economy has been grow- 
ing since the befpnning of 1991, 
while German recovery remains 
notionaL Most measures, notably 
unemployment, suggest the US 
economy is r unning at close to frill 
capacity, while German unemploy- 
ment is at 9.3 per cent, even exclu- 
ding the high levels in east Ger- 
many. US inflation is r unning 
only a little below German rates, 
which have been falling steadily, 
to below 3 per cent US long rates 
of interest are more than half a 
percentage point higher than 
those in Germany, underlining the 
greater confidence In German 
price performance. 

German rates 
The visitor from Mars would be 
puzzled. The investor in European 
markets seems to be shocked, if 
not by the level of German inter- 
est rates, at least by the fear that 
they may not decline further. Both 
the German and UK stock markets 
registered marked fells over the 
week. By contrast, US and Japa- 
nese markets have been relatively 


robust Similarly, Salomon’s Euro- 
pean bond index lost LS9 per cent 
in local currency over the week to 
Thursday, making European 
bonds the biggest losers for the 
second consecutive week. 

It had been widely assumed 
that by cutting the discount rate 
to 4J5 per emit on May 11, the 
Bundesbank had deliberately 
given itself room for substantial 
cuts in the repo rate, which was 
then (and is even now) well above 
the previous floor of 5 per cent 
That confidence has since been 
punctured. 

The proximate reason for the 
change in perspective has been 
remar ks by Mr Hans Tletmeyer, 
president of the Bundesbank, and 
a number of his colleagues. Mr 
Tietmeyer said that “we are not 
following a step-by-step cat In 
interest rates for the Hnw being*. 
Meanwhile, the Bundesbank's 
monetarist chief economist, Mr 
Otmar faring , remarked that “cur- 
rent money supply figures did not 
match a landscape of felling inter- 
est rates." The data certainly 
underlined the warning, since the 
Bundesbank's target measure of 
broad money, M3, grew at a sea- 
sonally adjusted, annualis ed rate 
of 153 per cent between the last 
quarter of 1993 and April 1994. 

Twin desires 
Two desires are warring in the 
heart of the Bundesbank. The first 
is not to throttle German and, 
indeed. European recovery. The 
second is to remain a credibly 
monetarist institution, one that 
takes its targets as seriously as it 
would like outsiders to take them. 
That side of the Bundesbank is 
worried by the weakness of the 
German bond market, looks 
askance at the German fiscal defi- 
cit and feels comforted by the 
emerging signs of recovery, not 
just in Germany, but also in 
France. It is good news, far exam- 
ple, that Insee, the French govern- 
ment’s statistics agency, predicts 
a 0.9 per cent growth In the 
French economy in the first half 
of this year. 

The first impulse drove down 
the discount rate in early May, 
While the second is dete rmined to 
use the room for manoeuvre as 
cautiously as possible. But Ger- 
man short term rates of interest 
still seem set to decline further 
(whatever the monetary numbers 
may say to the contrary). Simi- 
larly, US interest rates have fur- 
ther to rise. What is happening to 
monetary policy in US and Ger- 
many merely underlines the 
vastly divergent politics in the 
two countries. In the US people 
ask why rates are so unreasonably 
high, in Germany they a*k why 
they are so riskily low. That is 
why the Bundesbank is, once 
again, a convincing party-pooper. 


F or nine years, nearly £2m 
has been kept frozen in 
the bank account of a 
well-known local busi- 
nessman in the Irish 
county town of Navan, once a forti- 
fied outpost of British sovereignty. 

The money was alleged!; on its 
way from a Swiss bank to the pay- 
masters of the Provisional Irish 
Republican Army. But it was inter- 
cepted by the Garda. 

'Hie £2m was intended to help 
fund the IRA's armed struggle in 
Northern Ireland, condemned as the 
"six-county prison house" by Gerry 
Adams, the Sinn Fein president. 

“The account holder claims it is 
all legitimate,” says a hi g h- ranking 
Garda officer. "But It stays exactly 
where it is until the killing stqps.” 

Exactly what happens to the 
Navan cash when one of the world's 
most intractable conflicts finally 
«niis is low on the list of current 
republican concerns. 

The recent shadow boxing with 
the UK government has involved 
matters of much greater moment, 
such as agreement on iHw moaning 
of Irish national se lf-de terminatio n 
and the fete of hundreds of con- 
victed IRA prisoners kicking their 

hpuli? jn j ail. 

Ann Anthony, a protestant 
mother of two from Lurgan in the 
north, could be forgiven for wanting 
the prisoners to stay where they 
are. This month, with the death toll 
from 2ft decades of street warfare 
rising beyond 3,000, the IRA blew 
up her husband. Charge; working as 
a cleaner at a police station. Pen- 
alty: death. 

The cycle of hatred has cut 
deep into the of an mnn^yu t. 
fV iMHr community caught in the 
sectarian crossfire. Kamon Foot and 
Gaiy Con vie died together five days 
after Fred Anthony as they tucked 
infai lunchtime sandwiches; 76-year- 
old Roseaime Marion ended her hfe 
aimw* , at midnig ht, in a bullet-rid- 
dled arm chair . 

And yet, in spite of the latest, 
random murders and the cries erf 
"no surrender”, the 25th anniver- 
sary of the deployment of British 
troops in Ulster approaches with 
hope, not despair, in the ascendant 
As republicans pick at the Down- 
ing Street declaration, a document 
intended to be all things to all par- 
ties, a widespread belief persists 
that the end-game is under way. 

Sir Hugh Axmesley, ^hiaf consta- 
ble of the Royal Ulster Constabu- 
lary, Northern Ireland's police 
force, expects heightened savagery 
in the short-term but hopes to see 
an end to most terrorist violence 
w ithin three years. Jim Molyneaux, 
leader of the Ulster Unionists, reck- 
ons tiie worst could be over in a 
year. Adams himself, who has 
sounded at his most optimistic thin 
week, claims the struggle has 
entered a new and final phase. 

But the choice betweei peace and 
another 25 years of human tragedy 
is testing to the limits the co h esion 
of hardline republicans intent on a 
32-county socialist state. In the 
words of a convicted IRA bomber: 
"Not long ago, the mere Idea that 
men married to armed struggle 
should talk to the Brits would have 
meant a beating. Now even the Mg 
bays are into it." 

Out of sight, small groups, united 
under the "ballot box and armallte" 
creed at Sinn FSn and the IRA - 
Adams concedes they "draw water 
from the same well" - are debating 
the unthinkable. 

Could violence, which alone has 
given tiie cutting edge to the Irish 
question, soon he over? Might it be 
possible to decommission the IRA, 
the world's most technically 
advanced terrorist organisation? 

The pressures on the republican 


Financial pressure, exhaustion and a fall 
in support could persuade the IRA to end 
its violence soon, says Michael Cassell 

Endgame in a 
deadly zone 



Irish premier Albert Reynolds (top right) and John Major, authors of recent hopes of an end to IRA violence 


movement for a political deal have 
intensified since last December’s 
declaration, which united London 
and Dublin in leaving open ail 
options for Ulster's future bat 
rejected coercion af one part of the 
Irish community by another. 

Despite unprecedented publicity 
for the republican case and the plat- 
form given to the tactically astute 
Adams to sell his peace agenda, the 
unbending London-Dublin stance 
has won overwhelming backing. 

Electoral support in the north for 
Sinn Fein, which won 7R291 votes 
in the 1992 general election (10 per 
cent of the vote) has halved, though 
the British government stresses it 
recognises the party’s modest man- 
date. In the republic, polls suggest 
the party is backed by barely 1 per 
cent of voters. 

Political isolation, however, holds 
no demons for the battle-hardened 
men at the heart of the IRA - the 
dominant partner in its intimate 
relationship with Sinn F6in - who 
number about 400 - with perhaps 
another 50 key players in the south. 
It is these men, who numbered 
about 1,000 20 years ago, presided 
over by an Army Executive and a 
seven-man Army Council, who 
guard the soul of tiie IRA. 

They look to Belfast, still the 
political centre of the organisation, 
for guidance. A northern command 
structure split into 11 operational 
areas (southern command embraces 
the entire republic) plans attacks 
mounted by active service units. 

There are thought to be at least 
two units currently on the British 
mainland. In Ulster, active service 
units are supported by similar num- 
bers of part-time volunteers, 
blooded in minor sorties. Behind 
the volunteers, within the Catholic 
strongholds, are the supporters who 


offer safe haven in an estimated 
2,000 homes: "There is always some- 
one to ran them a bath to wipe out 
the evidence,” says an senior intelli- 
gence source. 

In Ulster border towns such as 
the largely republican Crossmaglen, 
the British army survives under 
siege, and lamp pests carry mock, 
triangular gigne warning: "Danger: 
Sniper at work." 

Not all support for the IRA in 
Ulster is freely given. Intimidation 
of Catholics by Catholics is wide- 
spread. On a night of terror in 
April. IRA "punishment" attacks in 
Belfast left one man dead and 16 
with gunshot wounds to the legs. 

Small groups, united 
under the 'ballot box 
and armallte' creed, 
are secretly debating 
the unthinkable 

Growing sections of the IRA lead- 
ership now share a conviction that 
the prospect of a glorious victory is 
as remote as the threat of complete 
defeat And most grass-roots repub- 
licans no longer have any stomach 
for slaughter, as a series of Sinn 
F6in public meetings staged to 
debate the Downing Street declara- 
tion made clear . 

At the same time, the IRA can- 
fronts a combined north-south 
assault on its manpower, weaponry 
and financial resources. In the 
republic, which la spending I£2G0m 
a year to bring the IRA to heel, the 
Garda claims recent arms finds 
have dealt a hammer-blow to IRA 
quartermasters moving arms and 
explosives up to the 282-mlle border. 
With Libya no longer supplying 


the arms which sustained the IRA 
In the 1980s, fresh sources are prov- 
ing hard to find. The recent expo- 
sure by British Intelligence of 
attempts to forge new supply links 
with Iran is a further set-back - 
though, fra* the time bring, weap- 
onry Is not a problem for the IRA, 
which has stored enough to sustain, 
the fight for another 10 years. The 
IRA arsenal Includes more than 600 
AK47 rifles. 30 mafjhhw guns, farm 
SAM7 missiles, a dozen hand-held, 
surface-to-surface mlaatle launchers, 
eight flame throwers, hundreds of 
Wehley pistols and tans erf imported 
Semtex, Irish security sources say. 

The organisation's engineering 
and electronics experts can add to 
the arsenal with home-made 
devices. Though icing sugar and fer- 
tiliser are still some times mixed to 
provide a deadly cocktail, a bomb 
factory discovered in Kllcock, near 
Dublin, recently yielded sophisti- 
cated equipment 

Waging a high-tech war - the IRA 
now has electronic devices to break 
into police and army frequencies - 
is expensive. The annual cost is 
estimated by the security forces at 
up to £7m, mid the rising number of 
bank raids in the south suggests the 
books are not balancing. 

Most IRA income comes from 
organised in the province and in the 
republic - a network of racketeer- 
ing and fraud, which ranges from 
video and audio tape piracy to tax 
abuse. In the eyes of those who 
fight the IRA, this makes it mare of 
a Mafia than an army of liberation 
and means its activities are 
unlikely to be extinguished by a 
political settlement 

The RUCs CIS anti-racketeering 
unit, which has overseen prosecu- 
tions involving nearly £60m des- 
tined for IRA coffers since 1982, has 


now been bolstered by a finance 
unit of 30 tax inspectors, lawyers 
and accountants. This unit played a 
large role in the recent joint opera- 
tion, codenamed “Madronna , 
between police on the British main- 
land and on both sides of the Irish 
border to nafi the sources of IRA 
financing. Meanwhile, in t he us , 

*m He for the IRA have been dwind- 
ling since the early 1980s. 

The foipWriation of political and 
financial pressures on the IRA and 
Sinn F&n to enter tiie peace process 
fe not lost on elements in their lead- 
erships. But they are acutely aware 
of the dangers of moving too fer too 
fast "If Adams screws it up, he 
owl up with a bullet in his 
head," says a s enio r member of the 
RUC. 

‘ A majority within the IRA army 
council is now said to fhvour 
BP Brnhfag for a political accord, but 
one which will not oblige republi- 
cans to endorse the Downing Street 
agreement A second ceasefire this 
year has not been ruled out 
But, remarked a source clai min g 
to be close to one council member . 
“They know it would be of no use 
just to sign up tomorrow. They first 
have to bring with them the constit- 
uency of armed, physical-force tra- 
dition people That will take time, 
carries great dangers and will also 
need the Brits to play the game." A 
former IRA volunteer indicates the 
scale of the challeng e within the . 
organisation: “Sure, we are tired, 
they are tired, everyone’s tired. But 
we’ll see them out of the six coun- 
ties or in hell before we give up." 

T here are some in the 
high command opposed 
to going further down 
the political road, which 
historically has always 
anriwri in fcra nmat fa disintegration 
for republicans. 

To the hard men of south 
Armagh, east Tyrone and Ferman- 
agh, toe only option is to continue 
to wage a war so sacred as to justify 

the TnTKrig of s chholritHite m fa War- 
rington, nurses in Ermiakfflen and 
six-month old infanta hi Germany. 

Talk of a spilt, however, provokes 
impatience among Sirm Fein heavy- 
weights such as Martin McGuinnass 
— publicly trandad a senior IRA fig- 
ure by Sir Patrick Mayfrew, North- 
ern Ireland secretary. "Do yon 
really think," says McGuhmess, 
"we have come this fer without 
ensuring full agreement on our 
position each step of the way. There 
is no split, there wDl be no split." 

An RUC intelligence officer 
agrees: “The name of the game fe to 
get people an side and gradually 
Isolate toe others.” 

The highest levels of the IRA 
appear confident that before the 
year-end, the organisation wifi 
again be in contact either directly 
or Indirectly with the British gov- , 
eminent. Moreover, they believe -4 
that, ultimately, they will be able to 
bring their argument to the heartaf 
Whitehall not In a stolen, mortar- 
laden van but in a briefcase. 

This week London and Dublin 
offered republicans more time to 
choose between peace and continu- 
ing armed struggle. The "Brits” say 
they are more than realty to talk. 

But there is, first, the one precondi- 
tion: ah end to ail violence; just 12 
weeks af peace will do. 

Like Gerry Adams, who recently 
quotedlrish poet Patrick Galvin to 
express his wish, London and Dub- 
lin, too, “dream of a green land 
without death, a new silence 
descending, a sflence of peace". 

A second article planned for Monday 
examines the influence of Irish 
Americans on Ore Northern Ireland 
conflict 



MAN IN THE NEWS: Tim Holley 


Crown prince 
of Camelot 


T he pictorial coverage of toe 
UK National Lottery 
announcement this week 
was evenly split between 
Richard Branson the Loser, and Sir 
Ron Dearing the Winner. 

The Virgin chairman was photo- 
graphed in various disconsolate 
poses while Sir Ron, chairman of 
Camelot, the winning consortium, 
was doing the things photographers 
expect winners to do - waving his 
arms in the air, or offering cham- 
pagne toasts to the camera. 

In a few pictures there was 
another man, smiling less extrava- 
gantly: Tim Holley, the 54-year-old 
chief executive of Camelot, who put 
the bid together, saw off seven 
rivals and who is responsible for 
making sure that the first 
multi-million draw of the lottery 
goes ahead as planned, probably on 
Saturday, November 12. 

It will almost certainly bo Sir 
Ron, former chairman of tho Post 
Office and chairman of the Schools 
Curriculum and Assessment 
Authority, and the Northern Devel- 
opment Company, who will be 
handing out cheques that turn ordl- 

S iltizons into millionaires most 
of the year. 

Behind him Holley, calm, unde- 
monstrative, will be running, if 
forecasts provo correct, a start-up 
business with revenues of £32bn 
over too next seven years. From 
that, £9bn will go to the govern- 
ment's "good causes" - the arts, 
charities, tho national heritage, a 
fond to mark the millennium, and 
sports. 

Colleagues describe Holley, whose 
gambling has boon limited to on 
occasional bet at a horse race, oa 
"exceptionally cloar-ralndod and 
focnaw". and "very steady under 
Ore". 

Outside the cumputur industry, 


the former chairman of Racal Data 
Communications group fe hardly a 
national business name, yet hfe 
meticulous preparation and plan- 
ning put Camelot well ahead of toe 
other bidders and created an unam- 
biguous winner. 

Camelot was the first to begin 
large-scale recruiting of staff within 
weeks of the formal bids being sub- 
mitted on February 14. Interviews 
were conducted and conditional 
offers made. The job offers have 
now been confirmed and the pivotal 
staff will report for work an Mon- 
day week. 

“We have done a rigorous amount 
of planning and testing, and we 
started to produce our applications 
as Boon as the draft invitations to 
apply came out,” Holley says. 

During hfe career he picked up 
several sMUh relevant to launching 
a national lottery. 

Alter school In Somerset, his first 
job was as a Barclays Bank trainee. 
He thus has some knowledge 0! 
retailing and Ute In the high street, 
He then worked In computer pro- 
gramming and marketing at ICL, 
the computer group, before spend- 
ing the last 12 years at Racal, whera 
ha specialised In data ernmnunioa* 
turns, He led the team that won a 
government data network service 
contract, Unking government 
departments, that could be worth 
£400m to Racal over 10 years. 

More Intriguingly, while in his 
303, Holley set up his own think- 
tank to suggest ideas on raising 
money for a charity he woe associ- 
ated with - the Muscular Dystrophy 
Group. Charity balls were organ* 
food, Severe] million pounds were 
raised by ideas such as persuading 
pubs to compete against each other 
to eee which could came up with 
tho most cash. A show business 
personality then presented a 



cup to the winner. 

“You put charity collection boxes 
In pubs and nothing happens,” Bays 
Holley. But give people the chance 
to compete, the chance to win and 
the numey rani In. 

Holley represented Racal in talks 
with potential shareholders of the 
lottery consortium, and three 
approached him separately, asking 
if he would became chief executive. 

Then Ernie Harrison [Sir Ernest 
Harrison. Racal chairman! came to 
me end asked whether I would be 
prepared to be chief executive, and 
whether I would be acceptable to 
the other shareholders, " says Hol- 
ley. who has been running compa- 
nies with several thousand employ- 
ws for yean. 

"Chany, running something that 
win affect people all over toe coun- 
try is something rathor different, 
and that's a new challenge, R he 
says. 

The strength of Camelot, he 
believes, la that all tho partners - 
Cadbury Schweppes, Racal Elec- 


tronics, ICL, De La Rue, the bank- 
note and document printer, and 
G-Tech, the US lottery equipment 
manufacturer - have all brought 
contributions to the consortium. 

Racal has a communications net- 
work which handles information for 
42 government departments; ICL 
haw a manufacturing base to ma ftp 
G-Tech lottery terminals in the UK; 
De La Rue has security expertise; 
and Cadbury has contributed retail 
knowledge. 

Already the lottery is off and run- 
ning, although details of the Uccu’e 
have still to be luumr^rod out with 
Mr Peter Davis, director of the 
National Lottery. The planned 
launch date may slip a week 
because It fe on Remembrance Day 
weekend. BBCl. which will proba- 
bly cany the lottery draw, tradi- 
tionally broadcasts the commemora- 
tion live from the Royal Albert Hall. 

Retail outlets are being signed up 
daily. The total Is approaching 
2,000, Including the Post Office and 
chain stores. Camelot also hopes to 
hold discussions with Marks and 
Spencer, which reserved Its position 
on the lottery until the winner was 

flnnminrwfi 

The announcement has prompted 
a surge of interest, with so many 
calls coming into Camelotis tempo- 
rary headquarters in Windsor - 
1200 on Thursday alone - that spe- 
cial message desks have been set 
up. 

H 1 think two-thirds of the adult 
population will play within the first 
year, although not every week," 
says Holley. “People will play regu- 
larly and got a lot of axdtamtnt end 
I think that's wonderful, at the 
same time as raising a lot of money 
tor good causes." 

Unlike some of hfe customers, 
however, Halley will have to con* 
tinue working for a living, There 
will bo no windfall for him, Along 
with the rest of the Camelot staff, 
he will be banned from paying £1 to 
chooso six numbers out of 49 to take 
port in their own lottery, “lfB a 
penalty of tho job." he soys. 

Raymond Snoddy 



THE LINK BETWEEN THE PAST 
AND THE FUTURE 


Omega SeamoKer. Self-winding 

chronometer in 16 k gold and steel, 
water-resistant to 120 m/400 ft. 
Swiss made once 1646. 





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OMEGA 

The sign of excellence 


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jTOANCIAL TIMES WTJFJCHND MAY 2&/MAV OQ lOOi 


Flashpoin t of fratern al feelings 


John Lloyd probes the potential 
clash over the Crimea peninsula 


UKRAINE 1 


W ith a reckless 
hand. It seems, 

the conditions for 
a civil conflict in 
Crimea are being piled one 
upon the other. So far, thewfll 
to fight appears bcirfng , but 
graceful and low-cost exits 
from confrontation grow nar- 
rower by the day. 

Since the dissolution of the 
Soviet Union, the Crimean pen- 
insula has been seen as the 
epicentre of a potential clash 
between Ukraine mid Russia. It 
is the benchmark for how 
Moscow grapples with the 
issue of the Russians abroad, a 
test 1 of its commitment to 
observe in spirit and in letter 
the borders of the newly inde- 
pendent state of the former 
Soviet Union. 

Crimea is an acid test, 
indeed, transferred from Rus- 
sia to Ukraine in 1954 by Nikita 
Khruschev as a mark of Rus- 
sian-Ukrainian friendship- It is 
Russian by majority of its 2.7m 
people, by culture and lan- 
guage, strongly felt to be so by 
most people in Russia and eco- 
nomically more linked to Rus- 
sia than to Ukraine. 

Cossacks, the traditional 
guardians of Russia’s frontiers, 
have revived since the collapse 
of communism. In their brown 
and blue uniforms, boots and 
peaked caps, the officers with 
ornamental whips, they stroll 
about the square before the 
Crimean Supreme Soviet (par- 
liament) - their age-old task of 
keeping order apparently 
restored to them. ‘‘We are 
against the separation of Slav 
brothers, M says Captain Yuri 
Gagalo, commanding a unit 
from Bakhchiserai near Simfer- 
opol. “There should be no bor- 
der between Ukraine and Rus- 
sia; we do not recognise them.” 

Signs on the fence in front of 
the Supreme Soviet building 


read: “Crimeans decide their 
own fate. Crimea - Russia!" 
and “Radeteky [the Ukrainian 
defence minister] wants to 
shed our blood.” One poster 
shows a map of Crimea with 
an angel flying up from Russia 
tO hold back thTPatafifog fig. 
ures looming in from the 
north, with the slogan: “Help 
and save us." 

Last week the Supreme 
Soviet passed . a resolution 
which brought into force a con- 
stitution of the Cr imean repub- 
lic drawn up two years ago. It 

claims autonomy for the penin- 
sula and, in the view of the 
Ukrainian government in Kiev, 
establishes independence prior 
to rejoining Russia. A Sorry of 
negotiations followed: Crimean 
deputies went to Kiev this 
week to talk over tire demand 
that they rescind their consti- 
tution by Monday (they 
refused): while the Crimean 
deputy premier, Mr Yevgsnny 
Saburov, joined talks (so far 
Inconclusive) in Moscow on the 
division of the Black Sea fleet 
- the 300-aWp navy based in 
the Crimean port of Sevasto- 
pol, under uneasy joint Uknri- 
niav R ussian 

The security situation is 
tragt-comic opera. Mr Yuri 
Meshkov. Crimean president, 
last month named Valentin 
Kuznetsov, a retired Soviet 
anny general, as his interior 
minister, and General Ivan 
Kblomitsev as head of the Cri- 
mean KGB. Gen Kuznetsov 
effectively took command of 
the interior ministry; Gen 
Kolomitsev could not establish 
his authority over the KGB 
officers, who remain loyal to 
Kiev. 

Gen Kuznetsov, professing 
MmMitf relaxed, reckons there 
are 100,000 men under arms in 
the peninsula - 50,000 Ukrai- 
nian troops, 35,000 Black Sea 


CRIMEA 


RUSSIA 


UKRAINE 


^ RDMAN&V ^ 

O Mites 10 0 1 N*j§ 
O Km 160 \32 


fleet sailors and marines, 
15,000 mffitia and 2£00 Ukrai- 
nian National Guards — the let- 
ter reinforced with armoured 
.personnel carriers. 

“There is a danger,” he says, 
"that the Ukrainian interven- 
tion will split the militia. If the 
Ukrainians were to fry to take 
Simferopol, they might have 
initial success - but it would 
be a hollow victory. We must 
go on talking, and fry to get 
agreement” 


M r Valentin Nedre- 
haylo, Ukrainian, 
deputy interior 
minister, also 

tallffi peace,. fHgnb»mfnp the 

use at force. EEs job in Crimea, 
he says; is aimed at the recon- 
stitution of the militia to con- 
trol the criminals flourishing 
in the political crisis. He has a 
point On Thursday, a smart 
Audi with four young men 
wearing sunshades and 
cropped hair drew up before a 
new restaurant One crooked a 
finger to a waiter who ran over 
and pointed within the restau- 
rant. A wffi+fa thiwi, loun g in g 
on the patio, disappeared. The 


flUSSlA* 


driver got out, ambled into the 
restaurant and came out a 
minute later, his pocket stuffed 
with the Ukrainian coupon 
now exchanging at about 
50,000 to the dollar. It was an 
almost cinematic display of a 
protection gang on their 
rounds. 

“There will be a planned 
implementation of Ukrainian 
command," says Mr Nedre- 
baylo. “Ukraine is a unitary 
state and. Crimea is part of It” 

But Kiev is weak. The parlia- 
mentary elections in April 
yielded a split parliament with 
a dominant socialist-commu- 
nist wing hostile to reforms 
and distrusting President Leo- 
nid Kravchuk. Mr Kravchuk 
should be preparing for elec- 
tions next month, but has 
called for a postponement 
because of the lack of a consti- 
tution. In the Crimean crisis he 
sees a reason, possibly, to 
declare presidential rule. 

The growing pressure upon 

the pawTnmla jg ra nging c ranks 

in the Crimean political facade, 
too. Mr Meshkov, a former law- 
yer elected on a ticket of unity 
with Russia, has been essaying 



Yuri Meshkov: cautious 

caution. He admitted this week 
he bad been against the vote 
on the constitution, preferring 
to wait in the hope that a new 
president in Kiev with pro-Rus- 
sian leanings - Mr Leonid 
Kuchma, a former Ukrainian 
premier, is the favoured candi- 
date - would bring the two 
Slav states together. Mr Mash- 
kov is in danger of being pul- 
led by, rather than leading, the 
political process. 

Mr Mustafa Djemtiyev, 
leader of the 200.000-strong Cri- 
mean Tatar community and 
loyal to the .Kiev government, 
confirms this view. “We bad 
hoped Meshkov would become 
moderate after his election. 
But he has become a hostage 
to his party (the Russia bloc) 
and to his ffflnipatg n promises." 

Not only the Tatar deputies 
were heated in a debate in Sim- 
feropol this week. Many depu- 
ties appeared angered by Mr 
Meshkov’s appointment of Mr 
Saburov - a former Russian 
finance minister - as effective 
head of the government 
(though the president is the tit- 
ular premier) aod his intention 
to appoint a group of Mr Saha- 


rov's colleagues from Moscow 
to the main ministerial posts. 
"Saburov is frying to become 
God,” ozse deputy snorted. The 
unease appeared to be roused 
more by resentment over 
young Muscovites coming to 
Crimea than by ideological 
splits. 

The programme which Mr 
Saburov is struggling to get 
past the parliament goes to the 
root of the Crimean crisis. He 
is trying to revive the peninsu- 
la’s economy even as it 
remains within Ukraine, with a 
currency prone to hyper-infla- 
tion and with ever -tighter cen- 
tral control, which is ineffec- 
tive in regulating business or 
collecting taxes but effective in 
deterring domestic and foreign 
investment 

Crimea lacks attraction not 
because it could not be rich. Its 
climate, offshore oil and gas 
reserves, its agriculture, its 
shipyards - all could contrib- 
ute to a standard of living 
higher to y p the hand-to-mouth, 
post-Soviet lifestyle to which 
its citizens have become accus- 
tomed. 

But it is trapped, politically. 
Presidential decrees on abol- 
ishing the Ukrainian fixed 
rates on currency exchange 
and on attracting foreign 
banks (while Ukraine repels 
them) are largely inoperable. 
While the three-cornered strug- 
gle for state power goes on 
between Ukraine, Crimea and 
Russia, there can be no confi- 
dence and no way out paved by 
Ann investment i 

Thus the pressure mounts, in i 
the Jazy heat of late spring, as 
the Cossacks step smartly to 
and fro, whacking their whips 
gently on their boots. The poli- 
ticians argue and rival wdiittas 
glower across a common court- 
yard. Whatever outcome 
emerges, it is the signpost for 
how Russia conducts itself In 
the former Soviet Union, and 
how far Ukraine can succeed 
in ftsteKHshiwg a statehood still 
fragile and contested. 


T he decision by the Interna- 
tional Whaling Commission 
to set up a sanctuary around 
Antarctica is being hailed as 
a. victory for the green movement’s 
whale diplomacy. 

“This is the end of deep-sea whale 
hunting,” said Gordon Shepherd of 
the World Wide Fund for Nature. 
“The Japanese whale industry is 
dead.” The sanctuary, to be monitored 
bn Australia, would link op with an 
existing safe area in the Indian 
Ocean, to protect about 80 per .cent of 
the world's surviving whales, and 
indefinitely put off-limits some 750,000 
minfc p whales that Japan says are 
legitimate commercial targets. 

At the annual commission meeting 
in Puerto VaDarta, Mexico, attended 
by representatives from the industria- 
lised world and international environ- 
mental groups, Japan was the only 
country to vote against the sanctuary, 
mth Norway, which does not hunt in 
the Antarctic, refusing to vote. Japan 
is now threatening to withdraw from 
the commission, which In principle 
would allow it to resume hunting. 

The triumph of the environmental- 
ists is partly symbolic, since commer- 
cial whaling is prohibited under a 
moratorium in effect for eight years. 
While the commission is considering 
lifting the ban, most observers believe 
a decision will not be made for years. 

Nevertheless, the sanctuary is 
viewed by the greens as an essential 
safety net, amid signs that the mora- 
torium is “leaking”. Norway has 
recently resumed limited commercial 
mtnk e whale hunting off its coastline 
in the north-east Atlantic, while 
Japan kills about 300 minke whales a 
year in the Antarctic for “research" 
purposes - allowed under the morato- 
rium. Activists believe that Japan will 


Formula for 
auditors 


Damian Fraser says the whales might finally be saved 

Hunters harpooned 



give up research killings in the Ant- 
arctic sanctuary now there is no hope 
of commercial hunting. 

The sanctuary may have wider 
Implications. Same campaigners see 
the 23-1 vote as a vindication of their 
tough tactics, which included threat- 
ening the Caribbean supporters of 
Japan's position with a tourism boy- 
cott "We can definitely learn from 
this and apply it to other animals,” 
says Kate O’Connell, an environmen- 
talist based in Colombia. 

The governments of non-whaling 
countries such as the US, the UK, 
France and Germany are happy to go 
along with the environmentalists 
because of the domestic political 
credit they earn. “They see this as a 
cheap way to buy a green image,” 


says Mzltxm Freeman, an anthropolo- 
gist at the University of Alberta, Can- 
ada. “Who could possibly be against a 
whale sanctuary?” 

Such attitudes infuriate Japan and 
Norway, which stress that the charter 
of the commission requires it to base 
decisions an scientific grounds, and 
regulate whaling so as to provide for 
“the optimum ntihsatum of the whale 
resources”. They say there is no scien- 
tific basis for a comprehensive sanctu- 
ary, since endangered whales such as 
the blue whale, are already protected, 
and will continue to be protected 
whatever happens to the intakes. 

Having lost the battle over the sanc- 
tuary, Japan and Norway are pushing 
to replace the moratorium with catch 
quotas for intakes, the only whale 


species not endangered. Quotas would 
allow the Japanese to hunt on a lim- 
ited scale for mtake whales off its 
own coast, and take political pressure 
off Norway for resuming whaling uni- 
laterally hi the north-east Atlantic. 

They are seeking support from the 
commission, whose scientific commit- 
tee has developed a mathematical 
model, known as the Revised Manage- 
ment Programme, to calculate how 
many whales of a species can be 
caught in a year without threatening 
survival. 

But the commission is in no hurry 
to implement the model, and the non- 
whaling countries would like to avoid 
a politically sensitive vote on the mor- 
atorium. The stalling game was given 
a boost by reports this year that the 


LETTERS TO THE EDITOR 


former Soviet Union under-reported 
killings of blue and other endangered 
whales. One ship caught 7,207 hump- 
back whales and 1.433 blue whales 
during a period of the 1960s, and not 
152 and 156 as reported, according to 
Alexei Yablokov, President Boris Yelt- 
sin's adviser an ecology. 

Environmentalists said proof of 
Soviet misraporting would reduce any 
catch quotas agreed - although the 
commission has said its impact would 
be mmhwai More important, environ- 
mentalists argue that observation and 
monitoring of catches has to be tight 
to prevent further cheating. With one 
mtake whale worth up to $50,000, the 
temptation to misreport is consider- 
able. 

As well as doubting official reports 
of Soviet kills, scientists have also 
begun to question estimates of stocks. 
The Norwegians reckon there are 

87.000 mtake whales in the north-east 
Atlantic, giving a catch quota of 290, 
according to the model Dr Justin 
Cooke, a scientific consultant who 
helped develop the commission's 
mathematical model, reckons they are 

53.000 intakes, which would give a 
quota of just one mtake a year. 

Anti-whaling nations say that | 
debates such as these could hold up 
the implementation of a quota scheme j 
for off-shore hunting forever. Even if 
there is acceptance of the numbers, 
there is the problem of how whales 
are killed. The UK objects to whale 
hunting because of the slow and pain- 
ful death of a harpooned whale. 

As a European commissioner put it 
“The point about whales is you get an 
enormous response - we received 

60.000 postcards backing the sanctu- 
ary.” The feet that whale meat is 
regarded as a delicacy in Japan does 
not seem to matter. 


Right vision 


From Mr Michael Chamberlain. 

Sir, Your leader “The liabili- 
ties of auditors"’ (May 23) is to 
be welcomed for its support for 
the principle that reform of the 
law seems sound. It is, as you 
state, unreasonable that audi- 
tors should be held wholly 
responsible for corporate disas- 
ters when they have not been 
the direct cause of problems. 

It is much less easy to agree 
that amendment of Section 310 
of the Companies Act in order 
to allow auditors to limit their 
fiabffity in contract is a flawed 
alternative to more fundamen- 
tal, and therefore less readily 
realisable, change. 

The monetary limitation of 
HahOlty that would flow from 

this anrairfman* should not be 

pitched at so low a level that 
the sense of professional 
responsibility felt by auditors 
would be put at risk- It is 
surely possible to arrive at lev- 
els which are reasonable and 
appropriate to the size of tadl- 
rtdaal companies audited. 

% hope the Department of 
Trade and Industry can be per- 
suaded to engage ta a public 
^ojndtotiau bo as to ascertain 
“ospsome such formula should 
jw^evbed. I believe that there 
is a measure of sympathy 
within, the business commu- 
sfcy to tills general approach. 
Michael Chamherfato. 


Number One Southwark Bri< 

Fax 071 873 5938. Letters transmitted should be dearly typed a 


;e, London SE1 9HL 

not hand written. Please set fax for finest resolution 


Pro -business steps on disabled 


Frtm Mr Stuart Rdiervtgton. 

Sir, The debate about civil 
rights legislation for d isa ble d 
people has moved to toe point 
where it is not a question of if 
the bill will be passed, bat 
what kind of bill win enter into 
British law. 

The business community has 
nothing to fear from civil 
right* legislation for Britain's 
disabled people, ta the US, the 
Americans .with Disabilities 


Act, passed two years 
ago, is seen as prohustares - 
enabling businesses to access 
new markets, arid opening new 
opportunities, and turning mil- 
lions of tax- users into tax- 
payers. 

When Jack Ashley reintrod- 
uces the disabled persons civil 
rights bill into the House of 
Lords on June 22, the business 
community, the government 
and disabled people, together 


with their organisations, 
should came together to dis- 
cuss new and imaginative 
ways of making the act work - 
such as providing tax 
incentives for smaller busi- 
nesses. 

Stuart Etoeringtan, 
chief executive, 

Royal National Institute for 
Deaf People, 

105 Gower Street, 

London WCJE6AH 


Information, not technology, is key asset 


From Mr Brent Work. 

Si t, I commend your editorial 
position (TTs not a knock- 
out”, May 17) that in fo rmation 
technology is no “magic bul- 
let". There is, indeed, a grow- 
ing body of research which 
Indicates that IT rarely pro- 
duces lasting advantage. FT 

seems only to magnify existing 

advantages. Yet, the same 


prenenrsbip, in no vation, and 
sound, baganfeatkm*. However, 
these teems are HkeJy to have 
new connotations. An abuh-. 
dance of information forces us 
to take a more complex, view of 
the world. Future entrepre- 
neurs may have to reflect more 
carefully before acting. What 
will “gut instinct” mean when 

pgfgtiny information concern- 
ing customer preference can be 

run through sophisticated 
models of market demand? The 


wffi be toe key to success in ail 


Governments ami businesses 
Invest wnfang annually devet ■ 
oping new technologies. 
Surely, tfrey should spend * 
fraction, of this' sum learning to 
use information better. 

, This is the “secret” of sus- 
taining competitive advantage, 
both at national and corporate 
levels, -but it is a lesson which 
we refuse to learn. Until we do, 
the FT will contfame to have 


Protecting 
the future 

Prom Miss Janet A Harvey. 

Sir, In toe interests of accu- 
racy, I paint oat that Lawnslde 
School in Malvern is not clos- 
ing “at the end of thin year 
because its governors believe tt 
is no longer commercially via- 
ble”, as stated ta your article, 
“Sums don't add up: dog days 
in Britain’s Independent 
schools” (May 13). 

It is merging in September 
with a neighbouring school 
because Its governors have the 
wisdom to see that current 
trends might otherwise result 
ta toe school becoming com- 
mercially enviable. By this 
means they have protected toe 
educational future of all cur- 
rent students and ensured con- 
tinuity for them. 

Janet A Harvey, • 

• headteacher \ 

Lautnside' School 
Great Malvern, 

Worcestershire, 

WR14 3AJ 


for UK 
industry 


From Mr Robert C Pearson. 

Sir, Professor Myddelton’s 
view (Letters, May 23) that 
there Is no virtue in companies 
retaining profits if they cannot 
invest toe funds profitably is 
typical of the finance/accoun- 
tant approach which has 
destroyed British industry. 

US President BUI Clinton, 
unveiling his new federal tech- 
nology policy, has left his 
country ta no doubt that the 
challenges that lie ahead can 
only be met by advanced tech- 
nology based on innovation 
and R&D investment. “Invest- 
ing in technology is investing 
in America’s future.” 

When will toe British come 
to realise that •mani ifa i’t nrbi g 
companies must be freed from 
control by short-sighted law- 
yers, financiers and accoun- 
tants in favour of broadly 
based engineers with the drive, 
virion capability required 
to secure the fixture? 

Robert C Pearson, 


twnic tatemuttan of bothmar- run through sophisticated we reuse to team, unta we do, i 
andoreanisations is taevt- models of mariset demand? The the FT will conthme to have 
SSL No bKany can afford answer wffl not be welcomed stafessuch as Tanr^ Loudon WrOELg tO be Called lOVallStS 
tirncmsequences of by executives who thrive on Ambulance, and Wessex ® J 


The Institute of Chartered 
Accountants, 

Chartered Accountants’ Mali 


to ignore toe consequences or 
the dramatic industrial reor- 
ganisation which this is now 

causing. 

As you suggest, ta one smse 
business will remain as ueuaL 
Success will belong to those 

fffth “shrewd judgment, entre- 


simple solutions, for example, 
those who believe In magic 
bullets. 

We must learn that informa- 
tion, not technology, is the cru- 
cial asset and that teaming to 
use information judiciously 


Health Authority to write. The 
FT must have a vested interest 
in keeping the secret 
BwmtWrak, 

University of Surrey. 

Gudcfford, 

Surrey GV2 5X3 


From Mr John Farago. 

Sir, I Object to the use of the 
word loyalists to describe the 
perpetrators nf killing s in Dub- 
fin last weekend. These people 
are not "loyal" to the crown, to 
the UK or to any part of civi- 


lised society. They should not 
be flattered by the use of that 
word. 

John. Farago, 

121 Church Road, 

Wimbledon, 

London SW29 5AS 


Kevin Done steers through the 
cultural revolution at a 
legendary Italian carmaker 

New vroom 
for sporty icon 

F errari is learning “There Is a clear evolution 
humility. Brought ta the Ferrari product," he 
down to earth by a fell says. “We derided to be much 
of almost 50 oer cent more attentive to what the 


F errari is learning 
humility. Brought 
down to earth by a fell 
of almost 50 per cent 
in sales ta toe mist two years, 
the carmaker has decided It 
has to listen to its customers. 

Ferrari sports cars may be 
modern icons, exhibited last 
year at toe New York Museum 
of Modern Art and currently 
at Berlin’s Neva Nationalgai- 
erie, but the Italian carmaker 
has been haring trouble find- 
tag customers during the past 
two years of global recession. 

The company is fighting 
hack, it is unveiling an array 
of new products at almost 
Indecent speed; the latest Ls 
the i83mph F355, on display at 
Its MaraneUo headquarters in 
northern Italy this week. 

The 3.5-litre F355, which 
boasts five valves per cylinder 
and 3S0bhp. replaces toe exist- 
ing 348 and will be crucial to 
Ferrari’s fortunes. It is to be 
launched around the world in 
toe second half of this year. 

Priced in excess of £80,000, 
the F355 will be Ferrari’s new 
“entry-level” car, toe lowest- 
priced in the range and set to 
account for about 60 per cent 
of its annual sales. 

While the engine roar of the 
F355s hurtling around Ferr- 
art’s Florano test-track this 
week under the 
guidance of for- 
mer Formula 
One champion 
NUri r junto and 

current driver 
Jean Alesi, may 
have been 
unmistakably 
Ferrari, the 
company's 
sales and mar- 
keting pitch is 
changing dras- 
tically. 

ta the late 1980s and early 
1990s there was a wave of 
speculative buying as auction 
values soared. “There was big 
speculation, tt was so easy to 
sell Ferraris,” Bays Mr Michele 
Scannavtai, sales and market- 
ing director. “We had three to 
four years that were crazy, to 
the beginning of 1992. You 
just had to produce tt and the 
car was sold.” 

In the second half of 1992, 
however, “things chan g e d dra- 
matically’*, he says. “Social 
and economic conditions 
changed. We have had a cou- 
ple of very difficult years.” 

Sales dropped sharply, to 
2,350 in 1993 from 4,400 in 
199L With stocks of unsold 
Ferraris growing, production 
was halted for 40 working 
days last year to bring inven- 
tories more into line with 
sales. Ferrari derided it had to 
become more user-friendly if ft 
was to halt the decline. 

Hie arrival of Mr Scannavtai 
at the beginning of last year 
from a career at Procter & 
Gamble, the US consumer 
products group, and at BSN, 
France’s largest food group, 
has marked toe cultural revo- 
lution at the carmaker. 



So long as it's red 


“There ls a clear evolution 
ta the Ferrari product," he 
says. “We derided to be much 
more attentive to what the 
customer says, wants and 
expects. We like to say we 
don't have a competitor, hot 
we cannot be blind." 

The change of heart - and 
the replacement of the 348 - 
has not come a moment too 
soon. The results of a recent 
comparative road test of the 
Ferrari 348, Honda's NSX and 
the Porsche 911 ta Autocar, 
toe British motoring weekly, 
carried the dire headline; 
“NSX kills 348 Shock.” 

Mr Scannavtai may have 
come to Ferrari from a world 
of detergents, oral hygiene and 
household cleaning products, 
but he insists it was a sector 
that demanded close attention 
to both consumer needs and 
the marketplace. 

He stresses how the F355 
has electronically controlled 
suspension settings, with a 
sport and comfort setting to 
even out the bumps. There is 
power steering, though the 
muscle-bound can still order 
the car with mechanical 
steer tag only. There Is ABS 
(anti-lock braking), though the 
same unreconstructed Ferrari 
buyer can deactivate It at 
the flick of a switch. 

The gear 
change has 
been smoothed. 
The perfect pol- 
ished metal 
gate and gear 
stick remain, 
but the new 
six-speed gear- 
box replaces 
the old dog-leg 
five-speed box. 

And, yes, the 
colour. Gone 
are the days when you could 
have a Ferrari ta any colour as 
long as it was red - or maybe 
yellow. “We've renewed our 
colour range," says Mr Scan- 
navini. The F355 comes with a 
range of 17 exterior and 12 
interior colours. 

The F355 has also been 
designed to behave impeccably 
ta town as well as on the race- 
track. Crucially, Ferrari has 
derided that animal sales and 
production will never again be 
allowed to exceed the ceiling 
of 3,000 a year to protect the 
exclusivity of the marque. 
Sales are also to be spread 
more thinly across more mar- 
kets. Stic markets are being 
opened in the Far East and 
four in Latin America. 

“We saw what happened by 
selling too many at the end of 
the 1980s," says Mr Scanna- 
vtni. “There were too many 
cars in the used car market” 
He also wants to go back to 
the “right" customers. “When 
the Ferrari myth became 
strong, it was with the gentle- 
man driver. In the period of 
speculation, too many Ferraris 
went into the wrong hands. 
Out customers do not want to 
be associated with Mafiosi, 
dealers and prostitutes." 



Opera Bottles 


CuntoiaovutB Fsotvav Onu 28 May - 23 Augiut 

DuivStmh Jjune 

IrrTkaT Match r NnrZe*UurD,TinrT Bau>« 2-6Juu> 


Royal AjCa&iky Sum*** E*m»ttwn 


Wimudou Ijcmiii Cn«Hno<itours 
Hmw Royal Rioatta 


5 June - M Aujui 
14-17JIUK 
20 June - 3 July 
29 June -3 July 


■ Veuve Clicquot m 

Champagne of The Season 




^ -a Vi."*- •a” 1 


FINANCIAL TIMES WEEKEND MAY 28/MAY 29 1994 


COMPANY NEWS: UK 


Close relationship expected to continue Lamb’s 

Be La Rue and Portals 

* t 

discontinue bid talks hsbc s 


By Paul Taylor 

Do La Rue, the banknote 
printer, and Portals, the secu- 
rity and specialist paper 
maker, yesterday ended 
merger talks saying they had 
been “unable to reach agree- 
ment on the terms of an offer”. 

The announcement that 
negotiations bad been “termi- 
nated'’ sent Portal's share price 
tumbling to dose 112p lower at 
653p, eliminating most of the 
gains made since the t alks 
were revealed two weeks ago. 

Shares in De La Rue dosed 
I4p higher at 843p. De La Rue 
Is expected to reveal strong 
profit growth and a further 
increase in its cash reserves, 
perhaps to around £250m, 
when its full year results are 
announced on Tuesday. 

In their brief joint statement 
yesterday the two companies 
said they had “long enjoyed an 
exceptionally dose commercial 
relationship, which is expected 
to continue". 

They added that “when suit- 
able opportunities exist, they 
expect to collaborate, for 
mutual benefit”. On the basis 
of this relationship De la Rue 
said it has “no present inten- 
tion of making an offer for Por- 
tals without the recommenda- 
tion of the Portal's board”. 

The statement ended uncer- 
tainty surrounding the discus- 
sions, which are understood to 
have begun some time ago on a 
friendly basis and to have been 
initiated by De La Rue. 

Portals' shares jumped two 
weeks ago when the group was 
forced by market rumours to 
confirm that it had received an 
unsolicited approach from an 
unidentified suitor which 
might lead to a bid. 

A few days later De La Rue, 


NatWest 
interest in 
TSB Bank 
purchase 

By John Sapper, 

Banking Editor 

National Westminster Bank 
said yesterday that It had 
expressed Interest in buying 
TSB Bank, the fifth biggest 
Irish bank. TSB trustees have . 
discussed a merger with 
National Irish Bank, a subsid- 
iary of National Australia 

Rank. 

NatWest is thought likely to 
have to bid more than £100m 
for TSB if an offer was 
allowed. Lord Alexander, Nat- 
West’s chairman, has person- 
ally told the Irish government 
that his bank would like to be 
allowed to bid for TSB Bank. 

NatWest said that it believed 
that it could reinforce its pres- 
ence in Ireland by baying TSB. 
It already owns the third larg- 
est Irish bank in Ulster Bank, 
which is significantly smaller 
than Allied Irish Bank and 
Rank of Ireland. 

National Australia Bank has 
said that it is in discussions 
with the TSB trustees and the 
Irish government over merg- 
ing its subsidiary National 
Irish Bank with TSB. 


London 
City bids 
for Towles 

By David Wighton 

Towles, the lossmaking 
clothing manufacturer, was 
the subject of a £4 .22m cash 
bid yesterday from London 
City, an Australian investment 
group, which has 51 per emit 
of the shares but only 14 per 
cent of the votes. 

London City, which has been 
a shareholder since 1987, said 
It was “outraged" at Towles’ 
cantinning losses. Mr Peter 
Murray, chairman of London 
City, said: “We fear for the 
value of our own investment 
and have no alternative but to 
make an offer." 

The offers, which were 
announced after the market 
dosed, are 265p cash for each 
ordinary share, H5p cash for 
each A ordinary share, 52p for 
each A preference share and 
78p for each B preference 
share. These represent a pre- 
mium over the last recorded 
market prices. 

This week Towles reported 
losses up from £148,000 to 
£236,000 for the year to Febru- 
ary 28 on turnover of £I5.7m 
<£16.2m). 

London City said it planned 
to introduce "new and experi- 
enced senior textile manage- 
ment" if the offers are success- 
ful. 

There was no response from 
Towles which was closed for 
Its spring holiday. 


De La Rue 

Share price (pence) 
1,100 

1,050 T- 


Portals Group 

Share price (pence) 

860 : 



TOO 1 ' 


000 — I 


SowoKOatutnam 

one of Portals' largest custom- 
ers. confirmed that it was the 
unidentified potential bidder. 
The banknote printer is under- 
stood to have been keen to 
acquire ■ Portal's technology 
and acknowledged expertise in 
developing banknote security 
features. 

Although the two companies 
hold regular discussions about 
commercial issues, including 
security features, news of the 
talks came as a surprise to 
analysts, who immediately 
expressed doubts about the 
industrial logic of a takeover. 

In particular they voiced 
concerns that Portals' other 
customers would balk at pur- 
chasing paper supplies from a 
company owned by a rival 

In addition they argued that 
if De La Rue took an of Portals' 
paper production it would lose 
the flexibility to pick and 
choose Its suppliers. 

Analysts also calculated that 
De La Rue might have to pay 
up to £10 a share - or about 
£650m - to win endorsement 
from Portals’ board. Such a fig- 
ure was dearly more than De 
La Rue was prepared to spend. 


In any event, negotiations 
between the two companies 
appear to have soured over the 
past few weeks after news of 
the discussions leaked out and 
allegations of “mud-sUnglng” 
began to circulate. 

The announcement therefore 
that the two companies had 
abandoned negotiations is 
expected to be greeted with 
relief by the Portals manage- 
ment and a degree of satisfac- 
tion by the City. 

Indeed the negotiations may 
have served to throw a spot- 
light on Portals' niche security 
and specialist paper making 
business which was once 
viewed as “slow but steady", 
but more recently has been 
growing at between 4 and 5 per 
cent a year in real terms. 

The outcome appears less 
satisfactory for De La Rue 
which has quadrupled its prof- 
its since Mr Jeremy Marshall , 
the ex-Hanson man , became 
chief executive in 1988 follow- 
ing a tough programme of dis- 
posals and efficiency improve- 
ments. Mr Marshall will now 
have to consider other options 
for his growing cash pile. 


Thorn sells majority 
stake in security arm 


By Peggy HoWnger 

Thorn EMI yesterday 
announced the disposal of a 
majority stake in its loss- 
making security business for 
£39.Gm, and said it was in dis- 
cussions regarding the sale 
of part of its electronics 
division. 

The music and rentals group 
is selling 60 per cent of Thom 
Security to its management in 
a deal backed by Hambro Euro- 
pean Ventures, the venture 
capital company. 

Some £11m of the sale price 
will be paid with interest to 
Thom between 1998 and 2000. 

The disposal was widely 
expected following comments 
from Sir Colin Southgate, 
Thom's chairman, earlier this 
week that a sale was immi- 
nent The group will book a 
post-tax exceptional gain of 
about £lm, before the £16m 
goodwill write-off. 

Thom EMI has reserved the 
right to increase its holding by 
2.5 per cent in the event of a 
trade sale or flotation. It is 
likely the company will seek a 
listing in 1995. 


The security division, which 
pre-dates the Thorn merger 
with EMI in 1979, has been 
pegged a non-core business for 
several years. 

In the year to March 31. 
Thorn Security incurred a 
£3-5m operating loss on sales of 
£160m. Before restructuring 
charges, the division was mar- 
ginally profitable. 

The management has 
invested £500,000 in return for 
an unspecified stake. Mr Allan 
Hendry, Thom Security’s tech- 
nical director, said the main 
difficulties had now been dealt 
with. 

The group, which claims a 
market share averaging 20 per 
cent in its UK businesses, 
expected to expand in east 
Asia and the US. 

Thorn EMI’s decision to 
retain a 40 per cent stake is in 
character with many of its dis- 
posals in recent years. 

It retained an 8 per cent 
stake in Kenwood, sold in Sep- 
tember 1989, 20 per cent in 
Thom EMI Software, disposed 
of in 1991. and 12 per cent in 
Thorn Lighting, which was 
shed in 1993. 


Jarvis acquires hotel chain 


By Simon Davies 

Jarvis Hotels is paying £43.5m 
for 20 hotels and two restau- 
rants from the collapsed Resort 
Hotels group, and is planning a 
flotation for the enlarged com- 
pany during 1995. 

Mr John Jarvis, who founded 
the company in 1990 and was 
formerly chairman of Lad- 
brokes' Hilton Hotel chain, 
said: ‘The acquisition makes 
us the largest private hotel 
company in the country”. 

The sales were expected. 
Resort had been recently 


delisted from the Stock 
Exchange with a negative net 
worth of £23m, after it suffered 
a £7lm loss in the year to April 
1993 from property writedowns 
and provisions. 

The sales enable Resort to 
free itself from bank debts, and 
pay off some trade creditors. 

Shareholders will be compen- 
sated through a total of £2m of 
vouchers - around 3p per 
share - to be spent in Jarvis’ 
hotels. But they will retain 
shares in what is effectively a 
worthless shell company. 

After the acquisition Jarvis 


will own 61 hotels, and manage 
a further nine. The hotels 
made an £18.5m profit in the 
year to March, and in spite of 
recession, the company has 
increased profitability every 
year since it was formed from 
the £186m purchase of 
Alhed-Lyons' Embassy chain. 

Jarvis originally planned a 
reverse takeover of Resort, 
which would have provided a 
ready-made shareholder base, 
and facilitated flotation. How- 
ever, the amount and quality 
of Resort's debt made this 
unfeasible. 


CPL rises 30% to £1.44m 


By David Bacfcwefl 

CPL, the fragrance and flavour 
manufacturing company that 
is coming to the market, yes- 
terday published its pathfinder 
prospectus and reported a 30 
per cent increase in profits for 
the year to end March. 

Pre-tax profits rose from 
£I.lm to £L44m on turnover of 
£17An <£l4.7m). 

The company, which claims 
its products are used as ingre- 
dients in products found in 
most homes, is aiming to raise 
Up to £5m net of expenses 
through a placing with institu- 
tions. It is expecting a market 
capitalisation of up to £20m. 

The family of Mr Terry Pick- 
thall, chairman and founder, 
own a 57 per cent of the com- 
pany, and is expected to retain 
around 40 per cent after the 
listing. 

The pathfinder shows that 
the directors expect to invest 


at least £2m of the proceeds in 
a project to develop a manufac- 
turing plant to produce aroma 
chemicals. The acquisition is 
conditional on the listing. 

The balance of the proceeds 
will be used for working capi- 
tal. 

The company owns two man- 
ufacturing sites in the UK, 
together with one in Hong 


Kong and one in India. Cus- 
tomers include many multina- 
tional and well-known national 
companies in more than 80 
countries. Overseas sales 
account for 57 per cent of turn- 
over. 

Impact day is expected 
towards the end of June. Credit 
Lyonnais is sponsor to the 
issue. 


DIVIDENDS ANNOUNCED 


Cook (WIffiamJ fin 

Ounatfin WwM* Jot 

Bflott (B) fin 

Kebeylnda.. - ini 

SJh Staffs Water fin 

IMtsd Drug ———tot 
Young (H) ■■ i nt 


Currant 

payment 

Dote of 
payment 

Cones - 
ponding 
dividend 

Total 

for 

year 

Total 

last 

year 

a 

July 27 

7.75 

1225 

11.75 

3.65 

Aug 11 

3.05 

5.2 

4.35 

5 

Oct 3 

3J5 

7.5' 

5 

ZA 

July 5 

2.4 

. 

9.5 

1 

Aug 2 

nil 

1 

nil 

3 

July 15 

a 

~ 

8 

35.5 

July 1 

32 

52 

47 


July 15 

22 

- 

7 

12 

July 15 

2 

- 

3.3 


NEWS: UK 


3i’s net assets improve 39% to £1.85bn 

By Richard Gouriay and a 30.3 per cent return on shareholders' the first time. Another £10U 


meeting 

By John Gapper, 

Banking Editor 

The annual shar eholders’ 
meeting of HSBC Holdings, 
the parent company of 
Midland Bank, was yesterday 
halted amid chaos as a student 
protestor handcuffed herself 
to the chair occupied by Mr 
Keith Whitson, the bank’s 
chief executive. 

The meeting was disrupted 
as Ms Catherine Muller, a 
Leeds University student 
protesting at Mi dlan d policies 
on the environment and 
lending to less developed 
countries, was carried out of 
the Barbican baft In London. 

Guards had to cut another 
student, Mr Chris Dunham, 
free from a microphone cable 
next to Sir William Purves, 
HSBC's chairman, end poll 
him from the stage along with 
others. The meeting resumed 
after being halted for 10 
minutes. 

The protest was staged by 
a group called Lloyds and 
Midlan d Boycott (Lamb), 
which has organised one of 
the most vociferous bank 
boycotts since protests against 
Barclays’ presence in South 
Africa during the 1970s and 
early 1980s. 

The disruption came after 
Sir William, who was 
questioned fiercely by Lamb 
members who had bought 
HSBC shares, insisted that 
he had personally refused 
some loans because be 
believed that the projects 
could damage the 
environment 

Sir William said his four 
children “leave me in no doubt 
about the importance of the 
environment. . . the world’s 
environment has been severely 
damaged and continues to be, 
and we take a keen interest 
in such affairs". 

One protestor said Midland 
was implicated in deaths in 
less developed countries 
because of its failure to 
“forgive" all debt there. Sir 
William said he hoped HSBC 
“played no part at all in 
deaths in any country”. 

Lamb activists said 
afterwards they intended to 
focus their boycott on Midland 
because they bad been given 
verbal assurances by Lloyds 
executives who they met after 
disrupting that bank’s annual 
meeting last month. 

Mr Simon Lewis, a protestor 
who was carried out, said 
afterwards that a poll 
undertaken by Lamb had 
found that students in 
Manchester were switching 
accounts from Midland. 

Midland said that the 
number of new student 
accounts opened with the bank 
last year had risen by 40 per 
cent. It said the bank had 
raised its market share of new 
student accounts from just 
under 20 per cent to 23 per 
cent in 1993. 

Sir William said pre-tax 1 
profits Improved in the first 
quarter “despite difficult 
trading conditions in the bond 
markets”. 


Si’s results, issued with the pathfinder 
prospectus yesterday, revealed a 39 per 
cent increase in net assets to £L85bn. 

The figure demonstrated the improve- 
ment in the health of the unquoted compa- 
nies in Si’s portfolio, said Mr Ewen Mac- 
pherson, chief executive. 

The results for the year to end-March 
1994 were flattered by the release of a 
£l52m pro vision for deferred tax on 
unrealised appreciation, which will no lon- 
ger be needed because & will have exemp- 
tion from capital gains tax once it floats as 
an investment trust Without this write- 
back, net assets increased by 27.7 per emit 


and a 30.3 per cent return on shareholders' 

funds. 

Si's total return - from all forms of 
interest fees and capital gains - was 
£555m, compared with £88m the previous 
year. By the largest element of this 
increase ramp from the £210m increase in 
the iiwwMitefld value of the portfolio. 

£ said the growth in value of the portfo- 
lio resulted from an “improvement in the 
profitability erf underlying investee busi- 
nesses, certain inv es tments being valued 
in excess of their costs for the first time 
and higher price earnings multiples of 
comparable listed companies”. 

Of this, about £l00m referred to invest- 
ments being valued in excess of cost for 


the first time. Another £10im of the 
increase in total return was the resultoi a 
sharp decrease in provisions - from 
£170 5m to £38 JBox - and an increase m 
profits on investments realised during the 
year. Revenue profits before tax increased 
by 24 per cent to 265.4m. The group 
paying the seven banks and the Bank of 
England, which together own 3i, a divi- 
dend of 137.6m. up from £26Am. 

As part of the flotation, 31 is restructur- 
ing via a tax-efficient rights issue and spe- 
cial dividend to existing shareholders. The 
group will pay a special £290m dividend 
which will be funded from a rights issue to 
the wasting sharehold ers that will raise 
exactly the same amount 




Seeking gain beyond venture 

Richard Gouriay witnesses the fanfare as 3i steps into the spotlight 

U nperturbed by the 
sharp fall in tbs equity 
markets, 3L the UK’s 
largest investor In unquoted 
companies, yesterday launched 
with great fanfare its long- 
awaited pathfinder prospectus 
ahead of flotation next month. 

With an anticipated market 
capitalisation of about £L6hn, 

31 will he the largest new issue 
this year, unless the govern- 
ment acts quickly on the sale 
of part of the Post Office. 

The 45-year old institution 
will also emerge abruptly from 
the relative seclusion of the , 
venture capital world, where it X 
is very well known, and into 
the glare of publicity reserved 
for companies In, or on the 
fringes of, the FT-SE 100 Index. 

The attractions of 31 as an * 
investment will depend to 
some extent on the pricing of 

the issue on June 22, and the Lvcfevnaruoa 

state of the decidedly edgy Ewan Macpherson (left) with Sir George Russel, chairman, and Brian Larcombe, flnanriar director 
stock market 

But 31, which has helped funds are invested in a small Nor will 3i change its raising funds. But 31 has als 
float over 800 companies, is number of companies. approach to customers, ft says ruffled feathers by undertakin 

likely to attract more interest 3i is wholly different. Since It it gains a strong competitive not to take management fee 
in the venture capital industry was set up to provide advantage fay leaving the (fed- from institutions Investing t 
from institutional mid private long-term finance to private sion when to float or sell the the UK fund- instead it wl 
investors than it has ever semi companies, It has grown to companies in which it invests take a “share in the perfb: 
before. dominate the British venture entirely to their managements, mance” of the investment 

For the seven high-street and investment capital scene. Many venture capital funds when they float or are sold, 
banks and the Bank of By the end of 1993, it had with limited lives are more Another stgn of a slicks 
England, which set up 3i to investments in 3,400 smaller interventionist operation Is 31's cost-cuttinj 

provide equity to smaller com- companies with a valuation of Si argues this approach has Since . 1989, it has withdraw 
panics, there are a number of £3bn. It does about 500 small- horn fruit in terms of invest- from areas in which it had n 
benefits. After an embarrass- ish deals a year, where many meat returns. distinctive competence - life 

ing about-turn 14 months ago of its competitors would typl- More recently, there have the US, consultancy and proj 
when 31's last attempt to float cally do 10 larger deals; it has also been developments that erty investment - cutting sta 
was pulled, the banks will be 18 regional offices, double the suggest 3i may be casting off numbers from 944 to 566. 
able to realise some of their number of its nearest campeti- its reputation of being a slow The listing of such a larg 
investment and hold the bal- tor and is rolling out the for- and old-fashioned institution. investor as 3i might have bee 
ance in a more liquid form. t mule to the continent thnng h Early this year, in a depar- greeted as unwelcome news t 
And by turning the group 'five offices focused on provid- tore from tradition, 3i began the gristing venture caplti 
into an investment trust, the Ing management buy-out and raising funds from other insti- trusts and independent funds, 
shareholders will be able to buy-in finance. tuttons winch it will invest and Mr Hugh Mumford, chfe 

shelter the capital gains 31 is “Most fond managers know manage. The first was a executive of Electra, th 
confident will continue to flow the small cap venture capital EcuSOOm fund for co-invest- investment trust that look 
as the small companies in its funds,” says Mr Ewen Mac- ment in continental European most similar to 3i. welcome 
portfolio continue to benefit pherson, chief executive. “But management buy-outs and buy- the move as an opportunity fo 
from economic recovery. most find it difficult to grasp ins. The second was a £150m more investors to learn abou 

For investors, 31 offers an our size, ft Is a different game fund for co-investment in UK investing in private companies 
entirely new way of investing to the venture capital bou- buy-outs larger than £10m - Ironically, too, 3i can gab 
in European economic recov- tiques.” the latter allowing ft to reduce some comfort from the fall n 

ery. Until now. private xnves- Mr Macpherson says 3i, the number of deals it has had equities - so long as it does no 
tors have had relatively few which Is not raising any to syndicate to competitor van- continue too long. After yester 
opportunities to invest In small money through the float, will tore capital groups. 3i will gen- day’s fall, 3i is more likely U 
and medium sized companies, not alter how it positions itself erate fees from the manage- go straight into the FT-SE 100 
Shares in some of the listed in the market It focuses on ment of the first fund. immediately increasing tin 

venture capital investment companies with sales of £lm to Si’s move into raising funds demand for its shares fron 
trusts are relatively illiquid £100m employing typically 15 will increase the pressure on institutions that try to mate! 
and high-risk, because their to 500 people. other venture capital groups the index. 


fnnds are invested in a small 
number of companies. 

3i is wholly different Since it 
was set up to provide 
long-term finance to private 
companies, It has grown to 
dominate the British venture 
and investment capital scene. 

By tbe end of 1993, it had 
investments in 3,400 smaller 
companies with a valuation of 
£3bn. It does about 500 small- 
ish deals a year, where many 
of its competitors would typi- 
cally do 10 larger deals; it has 
18 regional offices, double the 
number of its nearest competi- 
tor and is rolling out the for- 
mula to the continent thflng h 
'five offices focused on provid- 
ing management buy-out and 
buy-in finance. 

“Most fond managers know 
the small cap venture capital 
funds,” says Mr Ewen Mac- 
pherson, chief executive. "But 
most find it difficult to grasp 
our size. It is a different game 
to the venture capital bou- 
tiques.” 

Mr Macpherson says 3i, 
which Is not raising any 
money through the float, will 
not alter how It positions itself 
in the market It focuses on 
companies with sales of £lm to 
£100m employing typically 15 
to 500 people. 


Nor will 3i change its 
approach to customers, ft says 
it gains a strong competitive 
advantage fay leaving the deci- 
sion when to float or sell the 
companies in which it invests 
entirely to their managements. 
Many venture capital funds 
with limited lives are more 
interventionist 

Si argues this approach has 
horn fruit in terms of invest- 
ment returns. 

More recently, there have 
also been developments that 
suggest 3i may be casting off 
its reputation of being a slow 
and old-fashioned institution. 

Early this year, in a depar- 
ture from tradition, 31 began 
raising foods from other insti- 
tutions winch it will invest and 
manage. The first was a 
EctflOOm fund for co-invest- 
ment in continental European 
management buy-outs and buy- 
ins. The second was a £l50m 
fund for co-investment in UK 
buy-outs larger than £L0m - ' 
the latter allowing it to reduce 
the number of deals it has had 
to syndicate to competitor ven- 
ture capital groups. 3i will gen- 
erate fees from the manage- 
ment of the first fund. 

Si's move into raising funds 
will increase the pressure an 
other venture capital groups 


raising funds. But 31 has also 
ruffled feathers by undertaking 
not to take management fees 
from Institutions Investing in 
the UK fund. Instead it will 
take a “share in the perfor- 
mance” of the investments 
when they float or are sold. 

Another sign of a slicker 
operation Is 31's cost-cutting. 
Since. 1989, it has withdrawn 
from areas in which it had no 
distinctive competence - like 
the US, consultancy and prop- 
erty investment - cutting staff 
numbers from 944 to 566. 

The listing of such a large 
investor as 3i might have been 
greeted as on welcome news to 
Hie erating venture capital 
trusts and independent funds. 

Mr Hugh Mumford, chief 
executive of Electra, the 
Investment trust that looks 
most similar to 3i. welcomes 
the move as an opportunity for 
more investors to learn about 
investing in private companies. 

Ironically, too, 3i can gain 
some comfort from the fall in 
equities - so long as it does not 
continue too long. After yester- 
day’s fall, 3i is more likely to 
go straight into the FT-SE 100, 
immediately increasing the 
demand for its shares from 
institutions that try to match 
the index. 


NEWS DIGEST 


DMcfends Shown 
increased capital. 


per share net except where otherwise stated. fOn 
stock- ? Irish currency. 


BEP rises 
£lm to 
£5.1m 

Turnover at Bristol Evening 
Post, the publisher, printer and 
distributor of newspapers, 
dipped from £60.62m to £59.48m 
for the year ended March 31 
1994, but pre-tax profits 
improved by £lm to £5-lm. 

Earnings per share were 
LL98p, compared with 10.SGp t 
while the dividend is stepped 
up to 12.25p (11.75p) with a 
final payment of Bp. 

The group also announced 
the purchase, through its Bris- 
tol United Press subsidiary, of 
a Goss offset press from Rock- 
well Graphic Systems for £13m. 


BM Group said its debt reduc- 
tion programme was on track 
as it announced the disposal of 
a lossmaking machinery distri- 
bution business in the US, 
which is expected to cut bor- 
rowings by £14m. 

BM Is selling Illinois-based 
Roland Machinery for 87.8m 
(£5 .2m), plus repayment of a 
81.9m intercompany loan. The 
sale will also eliminate some 
£8m in stock finance previ- 
ously taken into the parent’s 
£98m debt figure. 

Viiliers 

ViBiers Group carried a provi- 
sion of £l-52m in its first half 
accounts related to its with- 
drawal from the oil industry. 

The USM-traded group 
reported a pre-tax loss of 
£l.B6m (£1.15m) for the six 
months to January 31. Losses 
per share were lR3p (2J25p). 

Quadramatic 

Quadramatic. the coin han- 
dling and optical group, 
reported pre-tax profits of 
£3.72m from a turnover of 
£17.6m for the six months 
ended March 31. 

A maiden interim dividend 


of 2J>p is being paid from earn- 
ings of 6.7p. 

Quadramatic also announced 
the acquisition of certain 
assets of KM Comark, a tem- 
perature instrumentation busi- 
ness for £3.85m to be satisfied 
by a vendor placing of 2.26m 
shares at 170p. 

Everards Brewery 

Concentration on the more 
profitable elements of the busi- 
ness and tight cost controls 
helped Everards Brewery, the 
Leicester- based independent 
brewer, achieve protax profits 
up from £539,000 to £l.5m for 
the 26 weeks to March 26. 

Turnover was slightly lower 
at £l7-2m (£17.7m). Earnings 
per share were 48i!p (23p). 

J Smart 

Turnover of J Smart (Contrac- 
tors), the building and public 
works concern, increased from 
£5.9m to £7.4m for the six 
months ended January 31, but 
pre-tax profits dipped to 
£790,000 against £1.04m. 

Earnings per share were 
5,Z5p (6.91p) hut the interim 
dividend is maintained at 2.3p 
- last year's final was 6.2p. 

South Staffs Water 

South Staffordshire Water 
Holdings lifted pre-tax profits 
by 17 per cent from £L0.3m to 
£12m in the year to March 31. 

Turnover increased by 9 per 
cent to £56.3m (£51.7m). 

A final dividend of 35.5p 
(32p) is proposed for a 52p (47p) 
total. Earnings were 160p 
(159p) pm 1 share. 

Kelsey Industries 

Kelsey Industries, which 
makes solder and audio and 
video accessories and has roof- 
ing and insulation interests, 
achieved a jump from £32,000 
to £693,000 in protax profits for 
the six months to March 31. 

Turnover slipped to £22.3m 
(£22Jtaj). 

Bantings per share emerged 
at lO^p (2.7p losses) and the 
Interim dividend Is held at 3p. 


Fortune Oil 

For 1993 Fortune Oil, the oil 
exploration and production 
concern, returned to the black 
with pre-tax profits of £517,000, 
against losses of £357.000. 

Turnover amounted to 
£41 .72m - including £41 .27m 
from acquisitions - against 
£377,000. Earnings per share 
were O.lp (3.6p losses). 

MillwaD Holdings 

Millwall Holdings, the 
USM-quoted football company 
which moved to a new multi- 
purpose stadium last August, 
reported pre-tax profits of 
£1.37m for the six months to 
November 30 1993, up from 
£383,000. 

Total turnover was £2.2m 
(£Lm). Transfer fees in the 
period were £l.98m <£1.38m). 
Earnings per share were 0.49p 
(0J4p). 

Castings 

Shares of Castings, the maker 
of iron and precisian castings, 
rose 12p to 260p yesterday on 
news of a 20 per cent rise in 
pre-tax profits to £5 -25m for the 
year to March 31. 

Turnover expanded from 
£33.75m to £39 ,33m and earn- 
ings per share emerged at 
l6J27p (14Jp). A final dividend 
of 3.65p (3.05p) raises the total 
from 4.35p to 5J2p. A 1-for-l 
scrip is proposed. 

H Young 

H Young Holdings, the Henley- 
based marketing and distribu- 
tion company, yesterday 
announced pre-tax profits up 
from £532,000 to £547.000 for 
the six months to end-March. 

The company distributes 
branded optical, automotive 
and electronic products, as 
well as the Head range of 
sports bags and equipment 

Turnover was static at 
£16.3 bl Earnings per share 
were 2J2ip (2.i5p). To redress 
the balance of interim and 
final dividends the interim is 
reduced from 2p to L2p. The 
anticipated total will be ho 


lower than last time’s 3Jp. 


B Elliott 

Following the tumround at the 
midway stage, B Elliott spe- 
cialist electrical and mechani- 
cal engineering concern, ended 
the year to April 1 with a sur- 
plus of £2£Lm protax against 
losses of £3U6m. 

Excluding discontinued 
operations and old contracts, 
turnover expanded 13.6 per 
cent from £72JJ2m to £82. 13m. 

Earnings were 6-7p (42.1p 
losses) and there Is a ip final 
proposed. 

William Cook 

William Cook, the Sheffield- 
based steel castings maker, 
reported pre-tax profits of 
£6. 71m for the year to March 26 
against restated losses of 
£4.04m. Turnover of continuing 
operations rose from £95£m to 
£98.7m. 

Earnings per share came 
through at 20.73p (24J36p) and a 
final dividend of 5p (3.5p) 
makes a 7J5p (5p) total. 

Dunedin Worldwide 

Net asset value per ordinary 
share of Dunedin Worldwide 
Investment Trust was 8805p at 
April 30 against 8415p at the 
October 31 year-end and 705L5p 
12 months earlier. 

Available revenue for the 
half year improved from 
£1.65m to £1.72m, for earnings 
per share of s.05p <4A4p). The 
dividend Is held at 2.4p. 

Fulcrum Trust 

Net asset value per income 
share of the Fulcrum Invest- 
ment Trust improved from 
0-83p to i.44p over the 12 
months to April 30. The figures 
for the capital and zero divi- 
dend* preference shares rose 
from 48.1 lp to 58.38p and from 
11L03P to 123.26p respectively. 

Available revenue wag 
£U)4m (£Lllm for 18 months). 
Earnings per income share 
were 9J!7p (I3.49p). a final 
3-2lp dividend makes 6.66p 
(R37p. or 13.0Tp for 18 months). 


. iM 

? 

? m 

Mr»* 


■ { 


i 



financial: TIMES WEEKEND MAY 28/MAY 29 1994 




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Fever checks new issue flood 

David Wighton reports on a worrying case of oversupply. 


COMPANY NEWS: UK 


I t may be merely acute indi- 
gestion, but fears are 
mounting that the sew 
issue market is suffering from 
a loner bug. 

The symptoms certainly 
worsened this week. Several 
large flotations were pulled 
and with the stock market ail- 
ing hist many were pre dic tin g 
that the infection would 
Spread. 

“The new issue market is 
virtually shut and companies 
which do not need the money 
should do themselves, and 
everybody else, a favour and 
wait," says an adviser to one of 
the recent casualties. 

However, the optimists, 
including advisers to 3i, argue 
that the problem is localised. 

The biggest cluster of casual- 
ties is in cable comnmmlcatians 
with two of the biggest UK 
operators, TeleWest and Gen- 
eral Cable, both postponing flo- 
tations this week. 

Most of the advisers involved 
with ' the sector believe it is a 
special case, partly because 
cable companies axe being sold 
on. the basis of future profits 
rather *b *p current Aamfng n. 
“The postponements are a 
direct result of market volatil- 
ity. When share prices in gen- 
eral are unstable investors 
focus on Ebe present ami are 
less likely to believe tomorrow 
stories,” said one investment 
banker. 

He believes that UK institu- 
tions were also worried that 
US investors, who are much 
more familiar with the cable 
industry, would shun, the 
issues. “I don’t think they were 
right but it is true that in ner- 
vous times US investors tend 
to stay at home." 

A rival banker believes the 
resistance encountered by the 
cable companies was only to be 





expected. “Experience shows 
that when markets are off col- 
our investors want good plain 
cooking, not fancy food like 
cable." 

The fact that most UK fund 
managers know little about 
cable also counted against 
them. One weary fund man- 
ager admits:' *TVe*ve ploughed 
through so many prospectuses 
over the past few months that 
the last thing you need is get- 
ting you Tnfari round a whole 
new market At least we all 
know what & is about” 

A ll involved with the 
cable ffttrijianigg insist 
that they will return to 
the market “We wdl be bade 
as soon as the market is in a 
better mood but I don't know 


Of 

whether that will he in 6 weeks 
or 18 months,” says a sponsor. 

The other sector looking 
sickly is property, where sev- 
eral recent issues have been 
scaled back significantly and 
the flotation of London Capital 
gfliiWng B pulled. • 

But the picture is patchy. 
Last week also saw the pricing 
of shares in Argent, a pro p erty 
investor and developer, which 
were confidently pitched at a 
discount of only 5 per cent to 
net asset value. One broker, 
not involved with Argent aalrb 
“That pricing demonstrates 
there is Hanmii fo r goo d 
companies, even in sectors like 
property where there have 
been a lot of floats.” 

Argent is valued at £i40m 
and there is gencsal agreement 


Liffe seeks £ 10m via rights issue 


By Antonia Sharpe 

Liffe, London's financial futures and options 
exchange, hopes to raise up to £10m through a 
rights issue which it sayB is primarily aimed at 
aMmsing the fur trading permits. 

liffe plans to issue “quarter-shares*' by way 
of a bonus which may be converted into full 
AJ3.C or E shares on a 4-for-l bams. A share in 
Liffe entitles the holder to a permit which 
allows than to trade specific products. . 

Holdersof A shares can trade in all futures, B 
shares in all financial options, C- shares in uH 


futures except long gOt and short sterling con- 
tracts, D shares in all equity options, and E 
shares in all futures except long gilt, short 
sterling, bund and Buro-maric contracts. 

liffe said the issue would provide for a 25 per 
cost increase in each relevant category of trad- 
ing permit. The amounts payable on conversion 
arm £50,000 for A shares, £25,000 far B and C 
shares and £8^250 for E shares. 

Hr Nick Durlacher, Lise’s chairman, said the 
issue would overcome the potential constraints 
on the farther, development of futures and 
financial options business on Ufife: • 


that it is smaller flotations that 
are particularly vulnerable to 
the market’s malaise. “II you 
are floating a company which 
is a major force in its market, 
institutions which have hold- 
ings in that sector are bound to 
look at It The tiddlers they 
can afford to ignore,” said one 
adviser. 

Such an argument bodes 
well for 3L “If you are inter- 
ested in unquoted company 
ftznds at all you are very 
unlikely to turn down SSL” 

Yet even the best quality 
floats are meeting resistance 
from some fund managers. 
According to Mr David Barc- 
lay, deputy managing director 
of corporate finance at Nat- 
West Markets, one institution 
ha s declared that it will not 
look at any notations in 
June. 

Another corporate broker 
says: “The best thing sponsors 
could do is to give investors a 
summer holiday and come 
back in the autumn when 
there is more cash in the 
kitty." 

In spite of the heavy calls on 
frt« tf f faTtiAna? each fltra nwr the 
past year the main investors 
are not short of money. “The 
problem is that funds allocated 

for atnalT mtnpgnlflfi haow hAPn 

exhausted by ail the flota- 
tions,” says a gmallor compa- 
nies analyst 

Ironically, one of the flota- 
tions postponed last week was 
Murray Johnstone's Acorn 
Turst, an investment trust 
which planned to raise £60m to 
invest in small quoted compa- 
nies and some venture capital 
projects. 

The disappointing response 
from institutions was Mamed 
partly on the past glut of new 
trust launches aru ^ ou Si’s flo- 
tation. 

This week also saw a num- 
ber of profit warnings from 
recently floated companies 
which underlined worries 
about the general quality of 
the current crop. 

Says one broken “We are 
Tipar the end of the cycle, and 
though there are obvious 
exceptions, we have already 
had most of the cream.” 

He believes City advisers 
need to weed out same of the 
weaker hopefuls on their 
books. “Otherwise there is a 
risk we could kill off the mar- 
ket completely. In its current 
state, it would not take much.” i 


Greggs pays 
ABF £19m 
for bakery 
outlets 

By David BfatekweH 

Greggs, the Newcastle upon 
Tyne-based bakery chain, 
almost doubled in size yester- 
day wito the £l835m purchase 
of Associated British Foods' 
retail bakery outlets. 

The cash deal comprises 424 
shops, mostly operating as 
Baker’s Oven, and two manu- 
facturing bakeries - one in 
Newcastle upon Tyne and 
another in Twickenham. 

Shares in Greggs rose 13p to 
close at 805p yesterday. ABF 
shares were down 12p at 543p. 

Greggs opened its 500th 
shop in January. Announcing 
1803 profits of £9m on turn- 
over of £i 10.4m in March, Hr 
Mike Darrington, managing 
director, was already claiming 
to nm the biggest and most 
profitable retail bakery com- 
pany in Britain. 

The gro u p is not planning to 
close any branches. The deal 
takes the employee total from 
6,000 to more than 11,000. 

Mr Darrington said the deal 
marked an important strategic 
move for the company, whose 
shops have been concentrated 
mainly in the north of 
England. The ABF shops are 
mainly in the south-east 
He painted oat that 78 of the 
shops were freehold or long 
leasehold. In addition, there 
were 168 with in-store bak- 
eries, providing good opportu- 
nities for expansion. 

Hie deal will be paid for 
with the group’s own cash 
resources and borrowings. At 
the end of its financial year cm 
January 1 Graggs had net cash 
of £1 2-1*11- 

ABied Bakeries. ABF’s bak- 
ery arm. said the deal would 
reduce its £100m turnover by 
about 20 per cent and the 
number of employees by 40 per 
cent Allied Bakeries has 
about 35 per cent of the bak- 
ery m ar ket for supermarkets 
and grocery chains. 

Mr Garry Weston, ABF 
chairman, said the wide geo- 
graphic spread of the retail 
operations had required an 
increasingly uneconomic daily 
dettvery of fresh bakery prod- 
ucts. Baker’s Oven shops had 
achieved “only modest levels 
of profit contribution” because 
of the competitive conditions. 


Boots sells Farleys baby 
foods to Heinz for £94m 


By Ne3 Buckley 

Boots, the retailing and 
pharmaceuticals group, is sell- 
tog its Farleys baby food group 
and its adult nutrition busi- 
ness to HJ Heinz, the US gro- 
cery products group, for £94m. 

The sale includes f20.7m of 
net assets, and brands such as 
Farleys baby milk and rusks. 
Timers baby cereals, and the 
slimming products Compton, 
Gadian and Crunch *n’ S hm 

Farleys sales totalled £S3Am 
in rt*** ywr eofl pd 1993 ~ 
about one third of the total 
sales of its parent division 
Boots Healthcare IntgTTKdjrroal 
- with TO per cart of those in 
the UK. 

Other important markets are 
tile Republic of Ireland, Pakis- 
tan, New Zealand and east 
Asia. 

Boots said that Farleys. 


which it acquired to 1966, was 
a strong business but did not 
fit in with its strategy of devel- 
oping the core over-the-counter 
drugs business of Boots 
Healthcare International, by 
concentrating on the four OTC 
categories of cough and cold 
remedies, pain relief, eye care, 
and skin care. 

The proceeds would be used 
to expand BH3, which was 
planning more acquisitions. It 
purchased two French and Ital- 
ian healthcare companies. La 
Socteto Franpaise du Triclocar- 
ban, and Marco Vlti, for £1 A5m 
last year. 

“We are being fairly aggres- 
sive to terms of developing BHI 
into a fully-fledged pan-Euro- 
pean business”. Boots said. 

For Heinz, the purchase is 
expected to increase Its world- 
wide baby food sales by 15 per 
cent to about $750m (£500m) 


and make it the UK's biggest 
supplier of baby food. 

it said Farleys' range, com- 
prising mainly “dry** foods 
such as rusks and cereals, 
would complement its own 
range of mainly “wet" foods in 
jars and tins. Heinz to taking 
on all 450 staff at Farleys, 
which baa factories in Ke ndal . 
Cumbria, and in Karachi. 
Pakistan 

Mr Andrew Barrett, manag- 
ing director of HJ Heinz UK. 
said the acquisition repre- 
sented a “significant opportu- 
nity to develop further our 
overseas business and. specifi- 
cally, to build towards our goal 
- to be a leading player in 
baby feeding in Europe” 

Analysts welcomed the deal, 
saying the price of ££Mm was a 
fair one, but Boots shares 
dosed down 15p at 509p in a 
weak market. 


Northumbrian Fine 
Foods back in black 


By Davfct BtadcweS 

Northumbrian Fine Foods, the 
USM-quoted biscuit and cake 
group, returned to the black 
for the year to end March, but 
is not resuming dividend pay- 
ments. 

Pre-tax profits of £211,522 
compared with a previous defi- 
cit of £5.6Gm. Turnover fell 
from rilm to rtKQm, althmig b 

the comparative figure 
included £7.4m from Lees, the 
confectionery and chocolate 
make- sold at the beginning of 
tost year. 

The 1992-93 deficit included 
£3.7m on the disposal of Lees 
and a loss of £584493 on con- 
tinuing activities. 

Last month NFF acquired 
Jesse nirifipiH a Manchester- 
based Mfcfl mann fa rt iirpr, for a 
maximum w-sfim. The acquisi- 
tion is expected to bring a fur- 
ther $ftm of turnover this year. 

Mr Henry Roberts, chief 
executive, said the manage- 
ment had been able to focus its 
attention on biscuits and 
cakes since the disposal of 
Lees. He described the 
group’s new structure as 
“well balanced” with each of 
tts three divisions producing 


about £8m of turnover. 

The Gateshead factory, 
which makes both own-label 
and branded biscuits for the 
supermarkets, returned to 
operating profits on the back of 
a 10 per cent sales increase. 
The group's own Bunkers bis- 
cuits, launched last summer, 
had achieved Elm of sales to 
the first year. Launch costs of 
£400,000 had been w r i t ten off 
against profits. Sales of a choc- 
olate version begin next 

month 

The Huddersfield-based dis- 
tribution arm, known as Bis- 
cuits for the Connoisseur, 
increased sates by 19 per cent 
and gave “a very satisfactory 
performance to terms of profit 
rach generation.” 

The balance sheet shows net 
current assets of £541,000 com- 
pared to previous net liabilities 
of £3. 08m. The improvement 
follows last August's £785J)00 
ri ghts Issni* and the conversion 
of £2fon of borrowings to a 
term Joan- 

Net interest paid fell from 
£660347 to £302,659, giving 
gearing of 85 per cent. Earn- 
ings per share of 0.5GP com- 
pared with previous losses of 
14.41p. 


Dixon Motors 
rights issue 
and listing 

Dixoa Motors, the car dealer 
which came to tile USM tost 
year after reversing into Pla- 
teau Mining, is to raise £&8m 
net of expenses via a l-for-3 
rights Issue of 3JMm shares at 
lSOp apiece. 

The proceeds will be used to 
reduce borrowings and pro- 
vide additional working capi- 
tal for site development and 
acquisitions. 

The company has also 
applied to the Stock Exchange 
for an official listing. The 
existing ordinary shares will 
continue to be traded on the 
USM until admission, which is 
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United Drug 
makes I£2.05m 

Profits before tax of United 
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distributor, rose from l£1.54m 
to I£2.D5m paw) for the half 
year ended March 31. 

Turnover of l£80.4m com- 
pared with I£6l.4m. 

Fully diluted earnings 
worked through at 7.9lp 
(7.27p>. The interim dividend 
is being lifted from 2.2p to 
235p. 



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12 


FINANCIAL TIMES WEEKEND ** AY 28/MAY 29 1994 


INTERNATIONAL COMPANIES AND FINANCE 


Rights issue and fears of 
inquiry hit Mediobanca 


Sharp bucks 
the gloomy 
trend in 


By Andrew MR in Milan 

Shares in Mediobanca, the 
Powerful Milan merchant 
hank, fell again yesterday to 
cast a deep shadow over the 

group’s planned U.500bn 
rights issue. 

The shares have fallen 
almost 20 per cent ginpg the 
issue was announced on April 
29 and following the disclosure 
that Ravenna magistrates are 
considering a criminal Investi- 
gation into the bank. 

Official notice of an inquiry 
is expected to be sent to hank 
directors within the next few 
days. 

The magistrates are examin- 
ing Mediobanca's role as 
adviser on the restructuring of 
Perruzzi-Montedisoo, the Ital- 
ian industrial group which col- 
lapsed last year, as part of a 
wider investigation of Femizzi 
finances. 

In particular, they will probe 
allegations by Mr Carlo Sama, 
former chief executive of Fer- 
ruzzi, that Mediobanca was 
aware last June of L400bn 
(5351m) of undeclared bad 
debts to offshore companies, 
but did not insist that these 
were disclosed in the Femizzi 
1992 accounts. 

Amalgamated 
Banks SA has 
weak result 

By Mark Suzman 
in Johannesburg 

Amalgama ted Ranks of South 
Africa, South Africa's largest 
banking group, has had 
another disappointing year, 
with attributable income 
before extraordinary items fall- 
ing 2.5 per cent to R666.4m 
($182.4m). 

Interest on advances dropped 
marginally to RlQ.17bn from 
Ri0.97bn as did Investment 
Income, de clining to R940.4m 
from Rl.44bn. Operating 
Income improved to R4.82bn 
from R4.73bn. 

Mr David B rink, chairman, 
said the results were disap- 
pointing but that the overall 
quality of ABSA's book had 
improved and some market 
share in the mortgage industry 
had been recovered. 



Enrico Cnccia: still guides 
Mediobanca's strategy 


Under Italian law, this is a 
criminal offence. 

Mediobanca is co-operating 
with the magistrates, but is 
understood to regard the 
alleged breach as a purely 
technical matter, that had no 
effect on the subsequent 
restructuring of Ferruzzi's 
L31,000bn of debt 
When Mediobanca launched 
its rights issue, it said new 
shares would be issued at a 
price of at least L 15,000 each, 
against a market price at the 

Competition 
56% decline 

By Erriko Terazono in Tokyo 

Increased price competition 
hurt profits at Nippon Tele- 
graph and Telephone, the Japa- 
nese telecommunications com- 
pany, as three new companies 
entered the long-distance tele- 
phone market. 

The company posted a 56 per 
cent fell in unconsolidated pre- 
tax earnings for the year ended 
March to Y109.5bn (SUMbn) on 
a 1.4 per cent fell in sales to 
Y5.809.lbn- 

Operating profits fell 41.2 per 
cent to Y230.2bn and after-tax 
profits plunged 745 per cent to 
Y41.4bn 

NTT said revenues had 
fallen due to an average 21 per 
cent cut in long-distance tele- 
phone call rates implemented 
last October to compete with 
its three rivals - DDL, Japan 
Telecom, and Teleway Japan. 

The dominance of NTT, a 


thru* of more than L18.500. But 
yesterday the shares slipped by 
a further 2 per cent to L15.290, 
perilously close to the floor set 
for the capital Increase. 

Mediobanca's shareholders - 
dominated by a group of large 
former state-owned banks and 
some of Italy's biggest compa- 
nies - will meet to approve the 
rights issue plan on June 13. 

The possibility of a criminal 
Investigation into the mer- 
chant bank is fascinating the 
Italian media, because of the 
influence Mediobanca exerts 
over the financial and indus- 
trial community. The bank's 
strategy Is still guided by Mr 
Enrico Cuccia, its honorary 

ff ha l ymnn , who IS 86 . 

Mr Vittorio Vicini, the chief 
prosecutor in Ravenna, where 
fh«* Femizzi family is based, 
fuelled speculation on Thurs- 
day when he told journalists, 
after meeting with Medio- 
banca’s lawyer, that “no sanc- 
tuary was inviolable". He said 
a decision on the case would be 
taken early next week. 

Mediobanca has also come 
under attack for installing 
allies on the boards of tbe two 
recently privatised banks. 
Banc a Commerciale Italians 
and Credito Italians. 


blamed for 
at NTT 

former state-owned company, 
has been eroded by the cheap 
rates offered by die competi- 
tors. 

Non-operational costs, 
including interest payments, 
fell 75 per cent due to interest 
rates, while personnel costs 
declined due to the company’s 
restructuring programme. 

On a consolidated level, the 
company also posted sluggish 
results. Pre-tax profits fell 475 
per cent bo Y1395bn on a 25 
per cent rise In sales to 
Y6,652.4bn. After-tax profits 
declined 70.2 per cent to 
Y49-9btL 

For the current year, NTT 
expects pre-tax profits to 
decline by a further 5 per cent 
to Y104bn on a 0.4 per cent dip 
in sales to Y5,784bn. On a con- 
solidated basis, the company 
forecasts flat pre-tax earnings 
growth at Yl40bn on a 1.4 per 
cent rise in sales to Y6,747bn. 


electronics 

By Wlfltam Dawkins In Tokyo 

Sharp, the Japanese consumer 
electronics group, yesterday 
broke the gloomy trend of its 
domestic competitors and 
reported an earnings recovery 
for last year. 

It cited cost cuts across the 
board and a rise in sales of 
electronic components - where 
Sharp Is the industry's leading 
maker of liquid crystal dis- 
plays - as reasons for its 15 
per cent rise in parent com- 
pany pre-tax profits. 

Taxable profits rose to 
Y455bn ($431.4m) in the year 
to March, from Y44.5bn in 
1992) when they had fallen 37 
per cent Turnover last year 
rose by 1.5 per cent to 
Yl,170bn, doe to a 20 per cent 
increase in sales of compo- 
nents, which represented 305 
per cent of Sharp’s total sales, 
its biggest business area. 

It forecasts a 26 per cent rise 
in taxable profits this year, on 
sales np 5 per cent to 
YlfZSObn, on the strength of 
new products and stronger 
marketing. 

Sharp expects no help from 
the Japanese economy, where 
it believes political instability 
is delaying measures to com- 
bat the recession and provid- 
ing a drag on private sector 
investment It is tentatively 
planning on 0.4 per cent 
growth in Japanese gross 
national product this year, but 
company officials warn this 
could prove over-optimistic. 

Last year's turnover 
declined in all divisions except 
for components, reflecting the 
continued sluggishness in Jap- 
anese consumer spending and 
the impact of the yen’s 
strength on export revenues, 
nearly half the total. 

Sharp, meanwhile, is 
ploughing cash into strength- 
ening its liquid crystal display 
production. 

A smaller electronics indus- 
try recovery appeared yester- 
day in tiie shape of a turn- 
round from Oki Electric 
Industry, the leading commu- 
nications equipment producer. 
Oki made a pre-tax profit of 
Y3.88bn last year, after a 
Y3853bn loss in 1992, on turn- 
over np by 0.4 per cent over 
the same period, to Y5655bn. 


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INVESTORS 

CHRONICLE 


THE CITY INSIDE OUT 


More cost cuts at Metallgesellschaft 


By Christopher Parkas 
in Frankfurt 

Metallgesellschaft’s German 
base metals operations yester- 
day joined tbe growing lists of 
sacrifices being made to sal- 
vage the battered metals, min- 
ing and engineering group. 

A tin plant Is to be shut, 
along with a zinc alloy works, 
white zinc production at MG’s 
Ruhr-ZInk smeltery in Datteln 
Is to be more than halved to 
90,000 tonnes a year. 

The measures will cost 
around 500 jobs, the group said 
yesterday, indicating further 
payroll cuts to come soon with 
an announcement that 
restructuring measures were 
under way In lead smelting. 
Earlier this month MG said it 
planned to rediice its total 


workforce by 7,500, saving 
DM550m ($329 5m) a year. 

The group, which made a 
loss last year of some DM2bn, 
also said it bad bought a fur- 
ther 245 per cent afthe London 
metals trading business, 
Metallgesellschaft Ltd, from 
MIM Holdings of Australia. 

No price was disclosed for 
the deal which raised MG’s 
stake in the London Metal 
Exchange business to 86 per 
cent 

Yesterday’s statements, fol- 
lowing the disclosure earlier 
this week of the sate of prime 
assets to help cover freshly-dis- 
covered risks in the US oil 
market, confirms that the 
promised shake-out at MG is 
well in hand. 

Earlier disposals included a 
49 per cent stake in vehicle 


components supplier Kol- 
benschmidt, and a small hold- 
ing in Mftthangr a Canadian 
methanol maker. 

In the light of European 
over-capacity, low profitability 
and the added burdens of Ger- 
many’s tough environmental 
laws, action on the domestic 
base metals business had been 
expected. 

However, the sale of the Bud- 
erus heating business, MG's 
headquarters to Frankfurt and 
the Leathering Montan Trans- 
port company, came as a sur- 
prise. 

Mr Kajo Neukircheu, the 
renowned company doctor 
shipped in by the banking con- 
sortium responsible for a 
DM3.4bn package which saved 
MG from the brink of collapse 
earlier this year, had previ- 


ously Insisted they were “not 

for sate." 

The group has not stated the 
e yfant of the fresh risks uncov- 
ered in the US oil business. 
However, its 80 per cent bold 
tog to Buderus, the real estate 
and transport companies are 
flfltiln vrtari to be worth almost 
DM2bn. 

Buderus, a high-profile 
brand, is benefiting from a con- 
tinuing domestic construction 
boom. The company’s offices 
occupy a prime, historic site in 
the heart Of Frankfurt’s busi- 
ness district 

Although many more of 
MG's 250-plus subsidiaries are 
likely to go, progress so far 
suggests Mr NeuMrchen is 
focusing manufacturing 
operations on environmental 
technology and engineering. 


Digital’s finance chief resigns 


By Louise Kehoe 
in San Francisco 

Digital Equipment's chief 
financial officer has resigned 
as the embattled computer 
company prepares for a broad 
restructuring to include about 
20,000 job cuts. 

Mr W illiam Steul, who has 
been chief financial officer 
since June 1992, is the second 
senior Digital executive to 
resign since the company 
reported far bigger than expecn 
ted quarterly losses of £183m 
last month. Mr Edward 
Lucente, head of worldwide 
sales, also resigned unexpect- 
edly. 

Digital said Mr Steal will be 
succeeded by Mr Vincent MuE 
larkey. Digital's controller 
since 1992 and who has 
long-standing ties to Mr Robert 
Palmer, Digital's chief execu- 
tive. 

Mr Mufiarkey’s appointment 
“is one of an ongoing series of 
steps we are taking to 
strengthen our management 
team," said Mr Palmer, sug- 
gesting that further manage- 



Palmen ‘making progress 
toward sustained profitability’ 


meat changes may be planncd- 

“Digital is making steady 
progress toward the resump- 
tion of sustained profitability,” 
Mr Palmer said, “the appoint- 
ment accelerating that prog- 
ress.” 

Prior to his latest position as 
controller. Mr Mullarkey bad 
held a financial management 
position in Digital's semicon- 


ductor operations, which, were 
headed by Mr Palmer before he 
was appointed chief executive 

in 1992. 

Mr Mullarkey’s first task wifi 
be to develop restructuring 
plana which the company has 
said will be completed by the 
end of the fiscal year, to June. 
These plans are expected to 
include proposals to sell por- 
tions of the company’s 
operations, as well as extensive 
workforce reductions. 

Analysts expect Digital to 
tafcp a charge against earning s 
of about to gltan to pay for cut- 
backs and lay-offs. 

In a further management 
chang e. Digital announced yes- 
terday that Mr Bernhard Auer, 
manager of the company’s 
European personal computer 
operations, has been promoted 
to take charge of the PC busi- 
ness world wide. 

He succeeds Mr Enrico Pesa- 
torl, who recently assumed 
additional responsibilities for 
all of Digital’s computer 
operations and worldwide sates 
and marketing, following the 
resignation, of Mr Lucente. 


Novell ahead of expectations 


By Louise Kehoe 

Novell, the leading computer 
networking software company, 
reported higher-than -expected 
second-quarter earnings, 
boosted by the sale of a soft- 
ware licence to Sun Microsys- 
tems. 

Net income for the quarter 
(ended April) grew 30 per cent 
to $105m, or 33 cents a share, 
up from S80m, or 26 cents a 
year earlier. Revenues 
increased 45 per cent to *407ta. 

The results included a one- 
time gain of $81m from the 
sales of a licence to UNIX 
technology to Sun Micro- 
systems and associated 


expenses to Novell of $35m. 

Excluding this transaction, 
net revenue for the second 
quarter was up 16 per cent, and 
net earnings declined by per 
cent to $75m or 24 cents a 
share. 

Mr Robert Frankenberg, 
Novell's president and chief 
executive, said: “Novell has 
weathered the difficult year- 
over-year financial compari- 
sons that followed major 
investments in technology to 
the second half of 1993. 

“The company is now posi- 
tioned for more favourable 
comparisons during the last 
half of fiscal 1994." 

Half of net revenue during 


the second quarter was from, 
the US, excluding the effect of 
the UNIX technology royalty. 
Revenue from the US grew by 
S per cent, from Europe by 13 
per cent, Asia Pacific 52 per 
cent and Latin America 72 per 
cent 

Together the rapidly growing 
markets of Asia Pacific and 
Latin America now represent 
over 20 per cent of total reve- 
nue. 

For the first six months reve- 
nue was *71 8m, up 33 per cent 
Net income increased 17 per 
cent to J178m, or 57 cents per 
share. At the end of April cash 
and short term investments 
stood at *930m. 


Puma confident of 
good results for year 


Court allows 
Parker bid for 
Bridge Oil 

By Nfldd Tait in Sydney 

An Australian court ruled 
yesterday that Parker & Pars- 
ley, the Texas-based oil and 
gas producer, should be 
allowed to proceed with its 
A$294m (US$2U.5m) bid for 
Sydney’s Bridge Oil The rul- 
ing permits P&P to present its 
formal “part A” takeover state- 
ment to Bridge shareholders. 

After hearings this week to 
the New South Wales Supreme 
Court, Mr Justice Windeyer 
determined that the bid was 
not invalid, although be also 
said the bidder should issue a 
supplementary statement to 
accompany the “part A” docu- 
ments. 

Lawyers for the target com- 
pany had argued that P&P’s 
takeover documents should be 
scrapped and the offer 
redrafted. 

The cash bid. the latest to a 
series of moves which have 
indicated a growing interest on 
the part of US energy explora- 
tion groups in the Australian 
market, is pitched at 70 cents a 
share. This has been firmly 
rejected by the Bridge board. 


By Michael Ltndamann In Bonn 

Puma, the sports shoe maker 
plagued by poor results in 
recent years, yesterday said It 
would make a “significant” 
profit this year following first 
quarter earning s of DMU.5m, 
($6.Bm) against a DMll.Sm loss 
a year ago. 

"We have completed tren- 
chant and some cases drastic 
changes," said Mr Jochen 
Zeitz, chief executive. “[We 
have] reached our goal of 
working profitably again a 
year fester than planned." 

Mr Zeitz aged only 30, took 
over at Puma exactly a year 
ago. it was an appointment 
that raised eyebrows In Ger- 
many’s often staid corporate 
environment. 

He said the company had 
reduced senior management, 
merged certain production 
stages and focused on products 
In mid and upper prices 
ranges. Puma Classics, a sports 
shoe first made by Puma in the 
1970s and which has now been 
relaunched, were selling espe- 
cially well In the US, Mr Zeitz 
said. 


Apart from a profit of 
DM497.000 in 1991, the com- 
pany had made a loss every 
year since 1986 c ulminating in 
a loss of DM685m last year. As 
part of the restructuring Puma 
shed 69 per cent of its work- 
force to 1993, leaving it with 
1,081 employees. 

Turnover in the 1994 first 
quarter was DM1 17.1m, com- 
pared with DMll7-9m in the 
same period last year. How- 
ever. Mr Zeitz said turnover 
would fell this year as Puma 
scaled back its loss-making dis- 
counted products. 

Puma closed its last German 
factory last year and about 90 
per cent of its sports shoes are 
now made at low-cost sites to 
Asia. 

The company is 82 par cent 
owned by Aritmos, the Swed- 
ish group. 

• Rhetometall Berlin, the Ger- 
man engineering and defence 
group, made a net loss of 
DM39.8m for 1993, against a 
profit of DM205m a year ear- 
lier, Reuter reports. Tbe divi- 
dend is going down from 
DM850 a share to DM7. 


Deutsche 
Bank to sell 
stake in 
Holzmann 

By Christopher Partes 

Deutsche Bank. Germany's 
biggest bank and a holder of 
substantial stakes In dozens of 
other companies. Is planning 
to dispose of its blocking 
min ority in the Philipp Holz- 
uuum construction group. 

According to Mr Lothar 
Mayer, Holzmann 
the bank diluted its stake last 
year from 275 per cent to 255 
per cent by not participating 
in a rights issue. 

In the long-term, it wanted 
to withdraw completely witirin 
a time-span to be agreed with 
the Holzmann board, Mr 
Mayer said. 

His comments, following 
predictions this week from Mr 
Edzard Renter, Daimler-Benz 
chairman, that Deutsche is to 
reduce its holding In Daimler, 
adds weight to speculation 
that the bank’s long-term 
strategy is to run down its out- 
side In terests. 

German banks’ intricate net- 
works of outside holdings and 
cross-holdings, largely built 
up in the post-war economic 
reconstruction, have come 
under increasing fire from 
small shareholders and activ- 
ists who complain that finan- 
cial institutions have too 
much influence on industry. 

Bank directors are com- 
monly among the most promi- 
nent figures on the supervi- 
sory boards which govern 
companies’ investment poli- 
cies. 

Commenting on Thursday 
on Mr Reuter’s forecast that 
Deutsche’s Daimler stake 
would be cut from 25 per cent 
to between 15 and 20 per cent 
within 10 years, the bank said 
there were no tirnnedtate plans 
for changes. “I would not like 
to speculate over a period of 
10 years,” a spokesman added. 

Tbe timing of Deutsche’s 
withdrawal from Holzmann is 
likely to hinge cm the owner- 
ship of other important 
chunks of the group’s stock. 


Fanuc’s annual 
pre-tax earnings 
decline 21.4% 

By Wffiam Dawkins 

Fanuc, the world's largest 
maker of numerically con- 
trolled machine tools, yester- 
day reported a 21.4 per cent 
decline to pre-tax profits for 
the year ended March. 

The group, a bell-weather of 
Japanese industrial invest- 
ment, attributed the fell to a 
decline in dftmawi caused by 
Japan's recession, but forecast 
stable taxable profts in the 
current year. 

Profits fell to Y22.99bn 
(3219m) in 1993, from 
Y29.23bn a year earlier, a 
slowdown on 1992's 44 per 
cent profits fall. Fanuc esti- 
mates pre-tax earnings will 
reach Y23bn in the current 
year. 

Sales fell by 95 per cent to 
Yios.ldbn last year and are 
forecast to rise slightly to 
Y107bn this year. 


Paris scents a takeover by LYMH 


By Alice Rawsthom to Paris ness man who masterminded 

Chanel's success to the 1980s. 
The future of Van Cleef & has recently been diversifying 
Arpels, the prestigious Paris away from fashion notably by 
jeweller, has been clouded by buying a vineyard. Chanel, 
uncertainty following reports which has for years been 
that Chanel, the famous renowned for costume Jewel- 
French fashion house, may lery, last year opened its first 
challenge LVMH, the powerful “real" jeweller's to Paris, 
luxury goods group, by bidding By contrast, Mr Bernard 
for the business. Arnault, chairman of LVMH, 

Chanel which like Van Cleef has made no secret of his 
is one of the few prominent hopes of expanding into jewel- 
luxury houses still in private lery. LVMH Is the world's larg- 
hands, yesterday issued a . est luxury goods group with a 
denial following a report in Les clutch of prestigious brands 
Echos, the French financial including Christian Dior per- 
datiy that estimated Van fume and Louis Vuitton lug- 
Cleefs value at between gage. Jewellery is one of the 
FFrl5bn (5260m) and FFrgbn. few gaps In its portfolio. 

However, Mr Alain Werthei- Mr Arnault is also on the 
mer, the secretive Swiss bosi- hunt for acquisitions after sig- 


nificantly reducing LVMH's for Mr Arnault to buy a promi- 
debt by unraveling a cross* nent name in jewellery. How- 
shareholding agreement with ever, it would also bring him 
Guinness, the UK drinks Into direct competition with 
group. He is said by analysts to Cartier, the French subsidiary 
have considered bids for both of South Africa’s Richemont 
Van Cleef and Tiffany, the New group, which is a formidable 
York-based jewellery group: force in the jewellery field, 
but to have opted for the Paris- LVMH is also expected to try 
based business. to acquire Van Cleefs fra- 

Van Cleef was founded In grances from Elf Sanofi, the 
1906 and is still controlled by French pharmaceuticals com 
the fo und i n g Arpels family. It pany. Sanofi plans to sell some 
has recently been affected by fragrance brands to fma^ 
the downturn in the luxury proposed acquisition of part of 
goods market Van Cleef has Eastman Kodak's pharmaceuti- 
seen net profits fell to FFr25m cal Interests, 
to 1993 from FFrtOm to 1990, Sanofi said yesterday that It 
with sales declining to had not yet decided whether tn 
FFrtorm from FFr305m. sell the Van Cleef perfumes! 

The acquisition of Van Cleef which made sales of around 
represents a rare opportunity FFr430m test year. 














\ ' FINANCIAL TIMES WEEKEND . 

Sell ^ ^ v 2S/MAY 29 1994 

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n.jri"’’ “ •” n ' “ "*“ *«'»• — «-< -» «. 

Ite agenda will not only alert you to the business opportunities and highlights of the 
week d wd. help you make the most of lHe outside work too. offering a compt hensfee 
guide to everyth. ng from the Arts and fashion to hearth and travel, ,„ an easy to use formal 

Remember ., you get Monday right you give your week the best poss.bfe 
start. So start the week with the FT. H«*»iuie 




Times. Europe’s Business Newspaper. 




















FINANCIAL TIM «S WliHKKND MAY 28/MAY 29 I W 


14 


COMMODITIES AND BOND PRICES 


WEEK IN THE MARKETS 

Coffee falls 
as metals 
climb higher 

Commodity markets took a 
mid-week breather from the 
fj p? arwi fury that has sharply 
driven up most prices. Then 
the markets took off in differ- 
ent directions: Copper and 
other metals renewed their 
bull run; Coffee and cocoa 
ended the week with heavy 
losses as investment funds 
started to sell. 

Meanwhile, the oil market 
remained uncertain about 
whether to extend the explo- 
sive rally that lifted prices by 
25 per cent since the end of 
March. London July futures for 
the benchmark Brent crude 
closed last night at about 
$16.30 a barrel, unchanged 
from a week ago. Traders said 
buyers bad appeared any time 
the price dipped towards $16. 

A long-awaited sell-off hit 
the coffee market after prices 
had started the week much 
stronger and, traders were 
looking for the market to malm 
fresh highs. However, the rout 
started in New York late on 
Tuesday when weakness 
across the commodity markets, 
starting in grains, spilled into 
coffee and cocoa. 

Coffee lost most of its gains 
rnarip earlier in the week on 
Wednesday when prices 
plunged by S138 a tonne on the 
London Commodity Exchange. 
The price fall intensified on 
Thursday when the market 
lost $175 a tonne in nervous 
trading. 

Coffee prices began to stabi- 
lise on Friday, however. Prices 
remained extremely volatile 
and the London market lost 
$30 a tonne to close at $2,004. 
Analy sts point out that coffee 
stocks remain tight 
Soyabean futures prices in 
Chicago tumbled by over 60 
cents on news of rainy 
weather. This nervousness was 
evident across the soft com- 
modity markets with cocoa los- 
ing £73 a tonne after hitting a 
6-year high at the start of the 
week. It closed on Friday at 
£993 a tonne - £17 a tonne 


lower than Thursday. 

Copper prices also fell victim 
to the mid-week sell-off But a 
bigger-than-expected fall In 
London Metal Exchange copper 
stocks yesterday sparked trade 
buying and metal for delivery 
in three months ended last 
night at $2^6150 a tonne, up 
$35 on the week. 

Attention on the LME 
switched to sine pnri tin yester- 
day after Me tall ge sells chaft, 
the financially-troubled metals 
group, announce d it would cut 
production at Ruhr- Zink’s D at- 
tain zinc smelter from 200,000 
twines a year to 90,000 tonnes. 
The Berzelius 10 , 000-tonne a 
year tin smelter at Duisberg 
win dose. 

Analysts pointed out that the 
proposed cut was only 
one-third of that needed to 
bring European supply and 
Hemanri into balance. Exports 
from fthfria, Russia and North 
Korea were adding to western 
over-supply. Mr Angus Mac- 
Millan, analyst at Bffllton-En- 
thoven Metals, said MG's move 


BASE METALS 

LONDON METAL EXCHANGE 

(Pricee from Amalgamated Metd Taring) 


(As at Tburtte/a da m) 


MumMum +8060 to 2.060,150 

AtocnMum afloy -1.120 to33S*0 

Capper -6.625 to 387,000 

i jtr* unchgd to 350025 

Mcfcai -42 M 131004 

2me +3,400 to 1,100,875 

Tto *160 to 29,245 

would merely slow the rate at 
which LME stocks of zinc were 
increasing. 

Nevertheless, three-month 
zinc was carried up with cop- 
per closed last night on 
the LME at $98&50 a tonne, up 
$1525 on the day but down $30 
over the week. 

Analysts suggested that the 
Duisberg closure was only 
mar ginally supportive for tin 
prices. One said that annual 
output from the plant was way 
below capacity - less than 
4,000 trmnea - SO the closure 
would not have a substantial 
impact on the tin market’s 
growing oversupply. However, 
three month tin was also 
caught up in the metals rise 
and closed at $5,662.50 a tonne, 
up $67.50 on the day and $40 
from a week ago. 

Deborah Hargreaves 
and Kenneth Gooding 


Cash 

Close 1333*4 

Pnwtore » 

HtfVlOW 132971325 

AM OftcW 1323-00 

Kerb dose 

Open W. 2*7.190 

Tot ti daHy turnover 53025 

■ AUUMIMUM AILOY (ft per tame) 

3ma» 

1381-2 

1380-1 

1363/1343 

13540-60 

1355-6 

Close 

PRWfaue 

HgMow 

AM Official 

Karts cfaee 

Open fat. 

Total deBy turnover 
■ LEAD (Spar tonne) 

1342-4 

1340-50 

1342 

1340-50 

3024 

402 

1340-5 

1346-50 

1340-45 

134060 


501-2 

518-9 


4770-80 

4950-60 

Hlghflow 


522/491 

AM Official 

483-4 

501-10 

Kerb cfaee 


517-8 

Open fat 

36.747 


Total daffy turnover 

10448 


■ NICKEL (ft per tome) 


Cfaee 

0335-45 

6425-30 


6385-90 

6480-65 



6475/6320 

AM omefft 

6250-60 

6340-45 

Kerb doee 


6350-60 

Open fat 

57.141 


Total daffy turnover 

15090 


■ TIN (5 per tome) 



Cfaee 

5585-85 

5660-5 


5515-25 

5500-600 

HkpVfaw 


5690/5560 

AM OOcfaf 

5555-65 

5630-40 



5580-600 

Open fat 

18095 


Total daffy turnover 

3092 


■ 23NC. atsecW high grade (S per tonne) 

Cfaee 

962-3 

986-7 


946-7 

971-10 

Wghricw 


990/962 

AM Official 

947-6 

973-4 

Karts cfaee 


977-8 

Open fat 

103089 


Total dally turnover 

23004 


■ COPPER, grade A IS per tome) 


Cfaee 

2255-6 

2264-5 


2235-7 

2246-7 

Hgh/faw 

2213 

2267/2210 

am OOdal 

2213-4 

2223.5-4.5 

Kerb close 


2251-2 

Open faL 

214081 


Total daffy turnover 

55006 



Precious Metals continued 

■ aOtD OCX (100 Troy QZ.;SftpyoEl 

mi aw* 

pika Mi tow tot Ita 

j« au au xu ant mm 

Jd mi -07 ttu Wtt 

Jm 387.7 -07 MM MU 83336 21801 

DO MO* *06 MM MU &2H 

Ok MM +9* mz 3813 23*05 2.T70 

M 387* -OB - UR 3T 


grains and oil seeds 

w WHEAT LC£ ft P** tenqO 


SOFTS 


w 


■ P1A7WUM NYMEX PO Troy ox; 1/lray az.) 

M 3085 -29 AOO 3R0 1*037 *798 


pria taege M* l*" “ 

jm 11490 *020 11430 *1*90 

n «3 -003 9*00 9800 550 

JZ 0008 -OR 100 00 09-ft 1*4* 

j. UJ90 -CIS WH-QQ 101-H 1.172 

M >0X33 4 10 10135 U123 W 

M 1CSJ0 40S 103S0 10535 229 

4J2T cw 

■ WHEAT ear B.OQOBU mm: cantHOOto tsreheB 


li 

•» 

07 

II* 

20 

32 


— 

fart 

0 mfn 

_ - 

om 


ptoe 

Mar 

M* 

lew M *t 


8*7 

■r* 

9B 

m 13 H 


m 


1004 

on *K7 UK 


nor 

ji 

1821 

«t nsn un 

OM 

1878 

•2i 

m 

tori Kflti i.flR 

UN* 

•18 

1080 

1837 nm 1.713 

tar 

Teed 

MW 

•n 

ton 

IMA IM* ** 

nun un 


■ COCOA CSC* no worn Mamie. 


net 


Apr 

TM 


4DZ.4 41 40U 4080 ON 

40*4 *20 40IJ 4075 L12* t» 

40*4 *20 4105 4B35 1073 2C 

TUm 5037 


■ LME AM Official OS ralac 10080 

LME Coring PS rata: 10085 

Spot 15095 3 mOK 15073 8MM150B4 9cnftcl5053 

■ WQHORAOE COPPER (GOMEX) 


Jon 

M 

tag 

tap 

Oct 

tar 

Tot* 


Dvr's • oph 

Om change M* has M 

10205 *0*5 1D185 MC0O 1.428 

10105 *105 10450 10230 31349 

10230 +105 - - <94 

10255 +10S 10130 10150 9.199 

10105 +105 - - 228 

101-55 *005 - - 202 

98008 


M 

JB4 

220 

a 

3 


575 


PRECIOUS METALS 

■ LONDON BULLION MARKET 
(Prices auppfiad by N M Rothachfld) 


WEEKLY PRICE CHANGES 

Latest Change Year — — ■ 188* • 

prices on week ago Wgh um 


Qoid per tray oz. 

Saver per boy oz 
AhjmHum 99.7% (cast* 
Copper Grade A (cash] 
Lead (cast* 

Mctari (cash) 

Zinc SH0 (cash) 

Tin (cash) 

Cocoa Futues Jri 
Coffee Futures Jut 
Sugar (LDP Raw) 

Barley Futures Nov 
Wheat Futures Sep 
Cotton Outlook A Index 
Wool (B4e Super) 

09 (Bratt Blend) 

Per none irim retwwtsa 


£385.70 

+10 

£379.75 

£39600 

£36900 

38105p 

-1245 

2980Op 

3840OP 

3350Op 

S13330 

-8 

£11280 

£132500 

£110700 


+32 

S1 1460 

5225600 

£173100 

55010 

+24 

£2580 

£51000 

£4260 

583400 

-600 

£56500 

£8290 

552100 

59620 

-as 

£9470 

•1014 

59000 

555600 

+40 

563030 

S58SO0 

*47300 

£988 

+41 

£663 

£988 . 

£859 

£1988 

-198 

£920 

£2247 

51175 

£2870 

-50 

£27100 

£2902 

52520 

£99.75 


£10500 

£9700 

£9265 

£99.40 

-005 

£14000 

£11700 

E970O 

880OC 

+0.10 

5900c 

880OC 

0246c 

426p 

-2 

375p 

428p 

342p 

S160O5X 

-0.10 

£18085 

S15095 

51216 


Gold (Troy oz-) 
Close 
Operfag 
Morning fix 
A fternoon fix 
Day's High 
Day's Low 
Previous done 
Loco Ldn Mean 
1 month 


■tried, p Poneaflag. c Cera tx. x .My 



New Sovereign 


S price £ equkr. 
38550-38500 
38300-38300 

383.40 253.981 

385.40 255.781 
388.10-38850 
38110-38350 
38450-38400 

(told Landtag Rates flta USS» 

.403 8 months 4.44 

4.12 12 months 407 

.-^4.17 

pAray ax. US eta eqiiv. 
38105 54500 

38550 55000 

38800 557.05 

380.76 572.85 

$ price £ egtfv. 

391-394 MO-283 

396.15-398.65 

89-82 50-62 


Joe B4J9S +105 13600 »U0 88* 385 

Sep 13525 -070 13550 U*2S 3,«B 477 

Dec 135.75 +085 13625 U6JC »17 59 

Star 13525 +OB 6 

Total MOB *1 

■ SLVSRCMEX (100 Troy at: Crtxrtray at) 

Jni 

5414 

+04 

. 

3 

• 

Jaf 

4470 

+03 

55*0 

5 W0 82471 24.115 

Sep 

562.4 

+03 

5800 

5510 n*S5 

r.«5 

Bee 

5802 

•03 

5885 

5SOS 17*21 

t 879 

Jet 

5819 

+03 

- 

32 

■ 

Her 

5863 

+03 

5770 

5705 5488 

13 

TeM 




127,1(3 270*7 

ENERGY 





ft CRUDE Oft NYMEX (42000 US ata- Ibecefi 


Lded 

Otfe 


om 



price 


me 

tarn fat 

Yd 

Jd 

17*6 

-012 

179B 

17.7*10989 SIXES 

/to v 

17JS7 

-an 

1708 

17.48 58.748 

? *flT 


17.42 

+009 

17*0 

1741 39539 


Oct 

1732 

-CIO 

1731 

032 22922 

21X 

Mr 

1733 

♦COB 

173* 

1739 1503* 

us: 

Sec 

1735 

+098 

1738 

1737 22K2 

4.439 

Total 




cnjNB non 

■ CRUDE Oft IPE (Itoeaei) 




■ - - 

Do»* 


OPH 



price 


■n 

Lew M 

W 

Jd 

1629 

+OIB 

1*33 

1422 C5298 

::033 

flag 

1018 

on 

*021 

1012 14*35 

3.6E2 

Sep 

1809 

*009 

un 

U07 11*75 

1*42 

Dd 

180* 

+008 

>606 

1801 7.775 

1016 

Nov 

U08 

•Oil 

■*£6 

!O06 UK 

4«9 

Dee 

1*0* 

+02B 

1605 

100* 60S* 

■30 

Total 




138088 38012 

■ HEATMaOftMnCX(4£OOOUS9ta:BlS^x: 


Lded 

o*f* 


Open 



Price 

dnage 

tad 

lew at 

«d 

Jas 

4115 

•033 

*845 

4790 ttt«r 

1335* 

Jd 

«L« 

•051 

-USD 

•800 4C.6C5 142X 

flap 

4895 

-029 

aic 

4885 0*5? 

S..'58 

Sep 

«95 

-CM 

5030 

49 DC 1T22S 

1.198 

Oct 

wan 



- 7.0*0 

?3B 

Nor 

5155 

+CC3 

9IJ8 

5*65 5456 


Tatrt 




136*36 44088 

■ MSOLKltoa) 



' ' 

Sett 

Oaf* 


Opes 



Price 



L— tot 

Ud 


16050 

+075 

151*0 

I50S5 27*82 

SC19 

Jd 

15160 

+100 

1522 151 DC 23.455 

£386 

flea 

15300 

•050 15400 

15300 90/3 

81* 

ftp 

154.75 

•C51 15525 15*75 6583 

233 

Oct 

15700 

+050 15*00 15725 64S3 

333 

Nov 

15025 

-025 

;bqoo 

15025 4.148 

328 

Tata 




sun 

*747 

■ NATURAL OAS KWBC (1000* wrattt.: Sfaatax) 


Lded 

0 *t* 


om 



price 

Ltaegi 

tm 

Leer Id 

W 

Jd 

1335 

•0027 

1*G0 

1*25 am 

8921 

flea 

1925 

-0017 

1940 

1915 12.529 

2146 

Sep 

1975 

-0007 

1985 

1970 12443 

1.746 

Oct 

LOSS 

-0006 

20GQ 

2045 2B8 

832 

tar 

1163 

-0003 

2160 

2153 m3C3 

496 

Me 


-0001 

2230 

2.273 1*072 

U23 

Tata 




125*17 13*81 

B UNLEADED OASOUC 



WnffiX (42000 US pdXioUSgdto) 



Utact 

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price 

ctafti 

im 

lew tot 

Vaf 


Jd 

31 MJ 

sm 

ms 

om 

33312 


338/4 

my 

WO 

ju 

Tata 

31810 


-1* 

-3ft 

■12 

20 

-ID 


■ MAHE CHT (5000 

jd 28U •212 

tap 280® *10 

OK 554/2 »2U 

Hr ML? +S4 

mr mi -W 

M 5BKD -1*4 


32410 317/0 134320 8*0*0 
329/S van 40.730 114*0 
VOt 3M0 5*250 ai SB 
3440 3M0 **» SH 
3340 UU> 255 
3!Bf4 31*0 *50 >» 

MQjBMUCM 
Du mm; centsMbhuaheQ 


ins 

4 

1188 

1X8 

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137* 

139? 

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•1 

1437 

ICG 

+1 

1481 

m:* 

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19*0 IM t.*» 
1*19 9m MO 
1437 UM 
■ «*1 
n.tniVR 


MEAT AND LIVESTOCK - 

■ um C*nu CM* NOOMta*. enm/m 

m mr> <*•* 

pita ta*e taw tat - 
jm 1*4/5 4JM *« KM KM 

C *8«0 ttStt «*M 

m »J H*m nm'nm wn 

■m nan +om nm **«• tut 

m u*4«nM]UI UR 

tar ffai&MRWnN vs 

taW - HR 

Jn ~*75M *mn 47«* vm t*M 

JM 47 300 *00/8 VM 4».«* IM 

tap **l» *Mft Wfll tfll uu 

M OIMSUKW UR 

Dee 49 SM ***** 4* 190 l» 

fta U0I9 <M» W 

1 mm a 

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rtn 

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UM 

IM 

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tw 

tit* 

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3*7/4 3*4>2 508.435 139.G0O 
2BL.0 254/2 174.006 IZM 
2550 2510477075 82085 

aso a on «-ios o* 

JO/O 284(4 5085 0*5 

2000 2BH I1SB 8R 
1J73M2C048 

■ BARLEY LCE (£ per tonne) 


ft* ** 


ta 9000 4LW 9*50 8*90 170 5 

•m 9975 * 

jm 101-30 • 

Mv 1(32.85 W 

a — ■ ' « ; 

■ SOYABEANS C8T |5J01ta tat i 


tarn 



Mm 

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tm«» 



.. .. m 

NM 

■ COmSB LCE IMonnd 



am 

-ft 

zm 

Ian m 21 


1688 

•48 

20*4 

1606 non UM 


1983 

-36 

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lift 0«M 


tM 

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lira w m 

Jm 

1*38 

77 

tw 

UM 8,481 W 



-15 

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1880 7.430 N 

TMd ***** om 

rn COPPtttt *6* CSCE (37*00*14. eredlftN# 


BUB ***** 4UM .41R* W 90 

41 . 3*5 *A m 410 * 4 BM UB 7 1 .HB 

won «*li» n* mm txr m 

4*390 >8.1*0 IM mm m w* 

aooo «m aim nw » ft 

5100* -IBM urn mm 91 I 

vk *m 


LONDON TRAOD OPTICS4S 

SMta price * tame —1 
■ ALUMMMtf 
(09-7W LNK 


New Aug Nov 



sun 

*1.8 

8W0 

872*8 298.1 10 TO*® 


672/2 

•2/2 

875/4 

671/0 78.110 19.080 

Ire 

E85A 

♦2/0 

8BBf4 

RSV* 4*010 7.9*0 


8*3/6 

+M 

8454 

6*2/2261.235101,180 


8*011 

-M 

851/D 

847/2 22.980 1.2/5 

(Mr 

Total 

ggt 

0 

8892 

662/4 9J24Q 970 

748088 3140*0 

ft SOYABEAN Oft CBT tfiO.OOOfce. cantata 


ToM 


12190 

HAM 

11*25 

mo* 

11150 

11350 


•ISO 0*30 moo 2303311.41* 
•a 20 in to 11400 1*743 *4*1 
4130 11*90 11X00 1*0* 3,157 
4)40 11*95 11*00 *132 17* 

430 11490 11200 in « 

-on moo ii30o n t 

8UW9M04 


■ QQtm SCO) (US centaftw* 


111. ft 


110*1 

11109 


Ml 2705 *0.14 2902 2725 14030 17*0 

S« 2*.B2 *0.11 97 75 27*0 10JD* 10*1 

Oct 2/00 -6.13 27.14 28. 95 7084 1.1S3 

OK JAM *008 2*05 1*7<0 *073 

Mi 28.40 *0 05 2550 2*35 1/78 271 

TbW 90,110 XX3ZS 

■ SOYABEAN ftftAL CBT (100 tons. VM 


jd 

19*2 

•10 

1948 

1937 30247 

9.495 


ISU 

•10 

19*8 

1915 

19223 

xm 

Sep 

132 * 

•13 

1930 

1918 

9*01 

1,572 


1901 

*M 

1907 

189.7 

5.657 

567 


1800 

• 14 

1896 

1895 17.286 

4.873 

Jm 

1863 

•IS 

1899 

188 * 

1.788 

85 

TMd 





mm 

20088 

M POTATOES LCE (Cfarme) 




Jm 

300 



- 



am 

900 

• 




* 

tar 

1 CO 0 

• 

• 



" 

Apr 

irxH 

■ 1.2 

127 * 

1290 

087 

36 

tar 

1*00 



- 

" 


Jea 

107 * 


- 


■ 


TMd 





«7 

98 

ft FRBOHT iBJFFGt) LCE (StQOnde* poftl) 


Itoy 

1478 

•: 

. 

. 

1.278 

• 


104 

4 

1285 

1785 

;n 

7 

Jd 

IX*' 

•1 

1210 

1210 

940 

2 

Ori 

1290 

■3 

1290 

1290 

394 

3 


1323 

*5 

1320 

1320 

219 

2 


1350 

•5 

1350 

1380 

79 

I 

fata 





JJ 41 

18 


UBtaMfte - 1123* 

■ NoT PRBftUM RAW SUOAR ICE ice<*»ftft _ 

M 12.11 411 » lift «.« 9.W* «0 

Oat 12L27 OJ0 lift H43 1.0ft » 

JM 1109 - ■ ■ ■ ’ 

Mr 11.96 4» 00 

mi xm m 

m WHfTtt SUOAR LC£ (S/tainft 

•100 55**0 34*00 12060 l ift 
■100 33100 39700 A7ft 
■2.10 32O0D 31*90 
■300 31*70 31*50 
-120 317.90 31790 
-120 32050 33)50 



tag 

New Area 

Nov 

MO 

MS OB 

rat 

7* 

«1 *4 

t» 

M 

ft 

U4 

tub 

Jd 

ta ta 

Sep 

M 

388 20 

12* 

171 

280 « 

147 

1« 

m 

m 

171 

Jd 

9m m 

tap 

n 

m 

3 ' 

'll 

m 

rao 

4 

i« 

so 

88 11 

23 

Jd 

Aug Jd 

Aug 

# , 

2- 

16 

, 

1 

32 

« 

*3 

1* 

48 


Oct 

Ok 


34/00 

59700 

31*00 

314.00 

31450 

31730 


782 11 * 

2.039 235 

306 I 

935 I 

2*0*3 UM 

■ SOOAR 1 1 ‘ CSCE { 113 , 00011 * taftatae) 

Jri tin -OS 12.17 fin 46,70* 15,190 

Oct 1301 423 &M lift 31. W *744 

Mr 11.37 4.17 IU3 11.78 920H W* 

tarn 11.74 417 n.M 1100 XKQ *5 

M/2 417 11*8 11*0 1.434 1 

11*3 417 11.79 1175 MO 

13*08* 27, U4 


1900 

1550 - 

1800 


LONDON SPOT MARKETS 

1 owucacHL rotafteiftaMftm 

‘ *15 IB- 508 * *OtT 

Stem Btaod |*4 

W.TJ. ( 1 pm ea* Si 7 .tT.r*M * 0.41 

M OIL PRODUCT* NMftpeaota OiltaY C4 Btaft 


Jnl 

Oct 

Total 


■ COTTON NYCS BO.OOOBft: centwEw) 


Oct 

Dm 


BH 


14*2 i«n 


««n *054 8*4* 81.40 200*0 4033 
77.70 403 77 77 77.17 593* *03 
7507 408 7800 7555 9301V ASM 
tar 7805 405 7**6 7*50 2*03 133 

tap 774* 413 77.4* 77.19 1*00 7S 

JM 7703 410 7705 JB * * 

m ujm w 

ft Q«AWW.JUICgNyC6(11000*iftCe»tatal 


Pteneum Oeerita 
Cm OB 
Heavy Fuel 01 
Naphtha 
Jet FUN 

P Vrt un Anpaa O MMMa 

■ OTHER 


*188-1*4 - ♦» 

*1*0-181 - *1 

082-84 *05 

*188-1*0 *! 

S1BB-1M AS 


Joe 5105 +028 5195 5100 15084 14057 

jri 52-10 •OS 5205 5106 40887 15,115 

Mg 52.10 +033 5225 5305 18059 4,115 

ftp 5100 +002 5105 51*5 10638 1,001 

Oct 4900 +OT 7 4*05 4 & 7 Q 3.610 86 

MOV 4*05 +022 4085 4&05 2051 208 

Tata 920 BO 380 QB 


SjsAoMft 

Popper me world demand and s upply s ttuatioo 
auegnis trat popper pcfooo fn gararv ohouW 
be expected to Inc r e a se. Rising coffe e and 
cocoa prices might tempi taws *0 deelera 
lr the Far East to c oncentr ate on those coro- 
moddea rather then pepper vMi can tw 
saorad far a longer period. TWs rnfahl leetit In 
a further dghowss In suppBes. 

White pepper - a sllgWy staarier undert on e far 
new oop pos it ions. Spot offend at U S S2 . 650. 
new crop: July/Oct sMpment was trtaediR 
*2,575 of. Further forward offered ft 52.600. 
Handpicked quality further forward was 
unwritable. Black pepper - fhe saUng pressure 
on prices ham Indta and Lsmpong dtsap- 
peored. Sarawak and Brazil were not competi- 
tive afters Hie maria* is My steady, faria 
mgl 187571700. 


M 

ta 

Nee 

Jen 

tar 

Hey 

Total 


97.75 *100 *W *08 W018 ft* 

10080 *100 101.00 97.* 3*8 108 

101* +L7S 1*00 *905 1027 97 

10345 +1.75 101 SO IM.90 2048 W 

104 00 +100 10400 101.75 *93 101 

108* +1* * J4 • 

BM 


VOLUME DATA . 

Open intweet and Vhfams dfta staanfar 
haded on OOMEX. NYMEX CBT, 
NYCE. C*4E. CSCE and IPE Crude Oi era one 
day In 


INDICES 

■ REUTERS (Base: 18/9731-100 

Mxy 27 May 2# month ego yeeraw* 
19450 19840 1*430 168 T .1 

81 CRB FUOtraa (Base: 4 / 9 < 5 *- 100 ) „ 


Odd (per tray CO* 

Sftmr (per my wt& 
ptmtaum (per tray oz 0 
patadkan (per Mw o*) 
Copper (US prodj 
Lead (US prad.) 

Tin Dtueft Lumpur) 
tti (N aw York) 

Zinc (US Prime . 
Catt# Rve wa n/H O l 
Steep Rva weVfttf 
Pfae RM vnftlft 
Lon. day sugar few* 
ton. oey sugw {***) 
Tore & Lyle axport 
Bartay (png. faaft . 
Mate* (US NaS Yftoft 
Wheal (US Dark North) 

Rubber W<¥ 

Rubber (At^f 
RubbwflaFtSSNol M 
Coconut OB «>N*| 

Mm 08 (ftNeyj! 

Copra Phrt 
Soyabeans (US) 

Corion Quttaok A Index 
Wooftope ( 84 a SuperJ 


138970 

•1.0 

88180 c 

+4.5 

*38726 

' -2.7* 

813926 


107.00c 

•20 

2900c 


tOftn 

+008 

389800 

-1.00 

tei*v 


12724p 

+028* 

13913P 

-MS’ 

87.640 

Mir 

*2*7.3 

+33 

*3*8.0 

+1.0 

£302.0 

♦20 

tAft. 


*140.0 


£1*90 


70-TSp 

•050 

71.00p 

+060 

252.0091 


1817*4 

+76 

tsozSy 

•12* 

*387.0 


£100.04 

-90 

8960c 

■030 


490p 


May 28 
22061 


May 23 month ago yew ago 
23109 223.16 20801 


CperkmMani 
r itaggMft. m MN ftMjn 
V Lomfai fWi eloet | OF 
does * 9m* *Mi wefte 
pmnWomS pmes 


iJonUii.yJun.wJdi 


WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONDS 

Red Day's 

Coupon Date Price change 



US INTEREST RATES 


■ LONG <MLT FUTURES OPTIONS (UFFE) E5Q.QOO 84tfa of 100% 


weak Month 
Yield ago ago 


ImcMon 


Australia 

Belgium 

Canada’ 

Denmark 

France BTAN 
OAT 

Germany 


Japan 

Nfthertands 
Spain 
UK Gits 


No 119 
No 157 


USTnwMy' 


ECU (French Govt) 

Union cioelnB. -Now Yc»j< irud-day 
T 

Prices: 


9.000 

08/D4 

1010100 

-0480 

971 

809 

941 

7050 

(MAM 

995200 

-0280 

7.78 

7.43 

702 

9500 

06/04 

894000 

-0400 

955 

929 

907 

7.000 

12AM 

94.6600 

-0030 

7.75 

700 

7.19 

9000 

06/93 

1050100 

-0.420 

Bu46 

909 

914 

5600 

04AM 

893900 

-0.700 

7.18 

978 

977 

9750 

(BAM 

99.4400 

+0000 

983 

806 

965 

9500 

01AM 

92*000 

-1400 

9.72T 

9.13 

905 

4000 

06/99 

107.7300 

+0.000 

904 

926 

3j41 

4000 

06/03 

1092130 

- 

3.73 

972 

303 

9750 

01AM 

910400 

-0.100 

998 

802 

982 

10500 

10/03 

104.6S00 

-0060 

971 

940 

901 

9000 

08/99 

91-08 

-34/32 

910 

709 

7*9 

9750 

11/04 

88-22 

-28«2 

939 

708 

703 

9.000 

10/08 

104-05 

-32/32 

948 

7-98 

707 

5075 

02AM 

91-01 

-14/32 

7.17 

704 

704 

9250 

08/23 

86-02 

-25/32 

7.42 

702 

709 

9000 

04AM 

880200 

-OM50 

703 

7.18 

703 


Mnwnta. 


0O8 

Tta Ttaetab— 
Eh ThieeBxniL. 


Treasury Bffls tad Bond YHJs 
307 Twcyner. 


MAuh — 

RdAMdsatHemnOon- 


On yew. 


*12 TDrea jesr_ 
409 Ore jeer — 
4*3 lOjew 
507 X-jrer 


BOND FUTURES AND OPTIONS 
Franc* 

■ Nonowu. fpbvch bow? rttures (mji 


&ot 

Strtkn 

Price 

Sep 

■ CALLS 

Dec 

Sap 

■ Kira 

Dec 


Open 

Latest 

Change 

High 

LOW 

EeL voL 

Open M. 


2-37 

3-06 

2-15 

048 


104-06 

103-18 

4M7 

104-19 

103-09 

382092 

314048 

8*0 


2-04 

2-42 

2-46 

4-20 


103-13 

102-20 

-0-28 

103-23 

102*14 

49.060 


7.19 

103 

1-41 

2-18 

3-19 

4-60 

Dec 

103-00 

101-31 

-0-27 

103-02 

101-28 

1.169 

38000 


EH not real, Cab 3870 Puts Z722. PlWna Ayto open W, CMi 2/38J 1S«4 










Ecu 

■ ECU BOND FUTURES (MAT1F) 



Open 

Sett price 

Change 

Hgh 

Low 

EaL WO L 

Open fat 

Jtai 

11946 

11808 

-0.74 

11984 

11986 

217,414 

117071 

Sop 

11948 

117.72 

-974 

118L04 

11702 

7038 

29014 

Dec 

11700 

11984 

-974 

11702 

117.12 

208 

7060 


Jun 


Open Sett price Change 
8800 85.74 480 


Mgh 

8800 


Low 

8508 


Eft. voL Open K. 
2018 8,847 


Japan 

ft NOTIONAL LONG TERM JAPANESE QOVT. BONO FUTURES 

(UFFQ YlOOm lOOthe oi 100% 

Open Cfaee Change High Low taL vaf Open M. 
jun 113.B3 11306 1*82 148 0 

Sep 11303 11*27 11420 1082 0 

• UFTC cenwcti ubM on APT. Al Open Utaeri Igs we for peftoue Oaf. 


ft LONO TBBA FRB4CH BOND OPTIONS (MATTQ 


, UK la 3am. ctnem m I 


ri 12 * per com paytMe hy rwnrwAtanbfl 


ECONOMIC DIARY - FORWARD EVENTS 


TODAY: International air and 
space exhibition opens in Ber- 
lin (until June 5). Conference 
on manag in g oil spiDs in Kuala 
Lumpur (until June 1). 
TOMORROW: Columbian pres- 
idential elections (first round). 
Ffenrinri m nnri of voting in Hun- 

gary*s parliamentary elections. 
MONDAY: UK bank holiday. 
Franco-German summit in 
Mulhouse, France (until May 
31). European Union telecom- 
munications council meets in 
Brussels. Start of two-day 
European Union agriculture 
council meeting in Brussels. 
Pacific Basin Economic Coun- 
cil meeting in Malaysia (until 
June 2). 

TUESDAY: Major British bank- 
ing groups’ mortgage lend in g 
(April). MO figures (May-provi- 
sional). Economic trends 
(May). Monthly digest of statis- 
tics (May). US personal income 
(April); personal spending 
(April); consumer confidence 
(May); and new home sales 
(April). Foreign ministers of 
Non-Aligned Movement hold 
annual meeting in Cairo (until 
June 3). Paris Club meets to 
Hiarmai rescheduling Algeria’s 
foreign debt National Associa- 


tion of Head Teachers’ confer- 
ence opens In Bournemouth. 
Pearson annual meeting. 
WEDNESDAY: Overseas travel 
and tourism (March). US 
NAPM index (May); construc- 
tion spending (April). Mr Bill 
Clinton, US president, leaves 
for week-long trip to Italy, 
Britain and France. Ever 
Ready Derby at Epsom. 
THURSDAY: Cyclical indica- 
tors for the UK economy (April 
- second estimate). UK official 
reserves (May). US leading 
indicators (April). Mr Jacques 

Odors, president of the Euro 
pean Commission, visits 
Romania (until June 4). Euro- 
pean Union health ministers 
meet in Luxembourg. British 
Chambers of Commerce annual 
conference in Bir mingham 
(until Friday). Institute for Fis- 
cal Studies publishes report on 
trends in income distribution. 
Boots announces results. 
FRIDAY: Overseas earnings 
from royalties (1992 and provi- 
sional data for 1993). Full mon- 
etary statistics (April). UK 
hosts UN environment pro- 
gramme on World Environ- 
ment Day at the QEH Confer- 
ence Centre in Westminster. 


Strike 

— 

— CALLS • 

Price 

Jd 

Sap 

11® 

973 

102 

120 

004 

003 

121 

921 

080 

122 

0.11 

008 

123 

905 

924 

Eat VOL ML Ota State 

Putt 70, TM . 


JtA 

100 


Dec 

030 

dtyta opart tat. 


PUTS 

Sep 

208 

3.18 

303 


Dec 


FT-ACTU ARIES FIXED INTEREST INDICES 

M Day's Jfar **"•** 
UK GDla Price Indfeee May 27 change % Mey zb 


xd of 


Index-flaked 


ffl 

May 27 


Cfcyta 
change » 


Thor 
May 28 


Accrued 


xda4 

yWd 


Calta 183013 Puts 148043. 


1 Up Id 5 years (24) 

2 5-15 yean {22) 

3 Over I5yena(9) 

4 [roedeanaHw fS) 

5 AD stocks (81) 


12209 

141.18 

15703 

179.15 

13808 


-912 

122.77 

2.18 

424 

-076 

14207 

227 

602 

-091 

19909 

317 

406 

-100 

18104 

1.18 

912 

-959 

13900 

2.40 

402 


8 Up»5yew»ra 
7 Over 5 yean (11) 
,(13) 


9 


(76) 


18903 

-90S 

18919 

080 

17348 

-900 

17508' 

'123 

17380 

•981 

17522 

1.18 

12802 

-900 

12644 

203 


903 

109 

177 

402 


'JW4 


High 


Low 


May 27 May 26 Yr apo 


«r 


tow 


tag May 28 


T^YET 'low~**~* 


Germany 

■ MOTIONAL QERMAM BUND FUTURES (UFFET DM25Q0Q0 KKMn of 100* 



Open 

Sett price 

Change 

Htfi 

Low 

EaL voi 

Open ML 


9374 

0345 

-916 

9412 

9302 

148110 

126875 


9323 

8206 

-918 

9360 

9364 

9678 

39778 

Dec 

9320 

8362 

-917 

9323 

9320 

70 

296 

■ BUND 

FUTURES OPTIONS (UFFS) DM250000 points of 100% 




S we 
15 yra 

ta«Lt 

Index-finked 


8.04 702 

8.40 808 

038 808 

80S 808 


700 804 B7/S 507 OftA} 
8.13 8.40 fewri 800 eon) 
034 808 07/5) 041 g071) 

808 809 (27/5) 009 (2471) 

- Inflat 


808 

803 

803 


8.14 

8.40 

8.40 


7.42 828 (27/5) 502 (W1 

802 853 27/51 839 

802 863 27/5) 842 


7.84 803 B7/S 891 f1W») 

1P7A 


877 8B8._ 

802 888 (277 


8831 

005 


Inflation rata 10% 


Up to 5 yr* 
over 5 yra 
Debe&faane 


300 

301 


873 

373 


2.38 385 08/5) 2.13 (471) 

308 381 (27/S) 208 (2071) 

5 yearn — 


200 

302 


2.71 

354 


203 201 (1 
338 362 (27, 
■ 15 yean 


1.19 (1 
370 


25: 


Price 


9*00 




CALLS — 


— 1 


PUTS 

Dec 

Jd 

A 09 

Sep 

Dec 

Jd 

Aug 

Sep 

1.18 

147 

1.74 

?n? 

970 

1-01 

128 

100 

988 

1.19 

1.4B 

1.76 

932 

103 

100 

314 

aas 

996 

101 

1.53 

1.19 

100 

1.75 

2.41 


— QS7 904 9ft 907 (27/5) 7.19 (1071) 863 900 849 903 (27/ft 709 (tal) 046 347 903 “ 9.48 (27/5) 709(2071) 

A»r^e ivon ndeftiption yfakta are shown above. Coupon Bands Low: OH-7 3*%; ModAnc 8H-104»H: WaM 11,4 9*w. t Bft 7*** 7** Year » ofte. 

ET fixed INTEREST INDICES GILT EDGED ACTIVITY INDICES 

May 27 May 28 May 25 May 24 Msy 23 Yr ogo _ High* Law" . M *Y 2fl ^ 23 May 23 < 


EeL VOL MM, Cafii 13281 Me 12384. Rrerioui day^i open taL. Cfta 118532 Pete 135819 


Oavt. See*. (UK) 9308 9389 9379 94.70 9504 9408 107.04 9308 OR Edged bergalna 1»0 127.1 *3 »2 JJ-J 

Rxad fcitarast 111.15 111.78 112.74 11359 11400 111.48 13387 11002 Kley average 1080 88,7 - - **■* 

- faf MHM. Oowwiowra SocoKM hioh ora oy^Walioit 117^0 (an^. kM 43.18 (VI/ 75 . Rxed Wortat Nc«i tax* comftdloa 13307 OVIflN] , tow 9003 SV1/75) . Belli WO G^JJUUiem IWMfltai VYW 
28 Md Food ktawl 1028 SE *OMy kufleta mtused 1974 


UK GILTS PRICES 


ft NOTIONAL MHMUM TERM GERMAN GOVT. BOND 
pQSgflJFFE)* DM250000 lOOtfts of 100H 


HBB 


YteSd — _ 1994 — 

W nefl Pfleot tege Lew 


Opart 


Jun 


Sett price 
9905 


Change 

+005 


Wflh 


Low 


Eft. vol 
0 


Open kn. 
1T45 


Italy 

■ NOTIOKAL ITALIAN GOVT. BOND PIRI FUTURES 
(UFFQ - Lira 200m IQQffla of 100% 



Open 

Sett price 

Change 

Mflh 

Low 

EaL vtf 

Open In. 

Juft 

11925 

10930 

-972 

11948 

10918 

52128 

62538 

8ep 

Deo 

10900 

10840 

10340 

-972 

-972 

10900 

10820 

5460 

0 

16820 

0 


ft IT ALIAN OQVT. 8Q*R> (BTP) FUTURES OPTIONS Qa-rc) LK200ni IQOffB Of 100% 

CALLS — — ■ - — PUTS —————— 

Sap Ok 

ana 904 


LOW COST - git gill 

SHARE DEALING SERVICE 1 


COMMISSION l l'i)'! -I (t 

£99 MVMMI M.QS -\M CUAl.'l. 



INDEXIA U PlITs 

*£j*gSs&££2S33* 


Strike 

Price 

10600 

10B5O 

10800 


Sap 
2.13 

Z2S 300 205 

? nn £.71 200 

EaL VCL md. Oak 13tt Pide Itta. fita e ni ttayta open leu ttbi 13W« Pvta iowa 


Dee 

204 

310 

308 


SMiriUmapMRM 
fnsBL 1 Ope Lit 199*$$— 

Ea» il'jpe 1994 

Tnwope 19S4B 

J3* 1995 

EHfi 3pC C33 90-45 

I0LX >995... 

Trees 12t«pe 1998^ — 

l*0c 1996 

iy+pc1996?r 

Etttl 13tipC 19980 

Conwra m lOnc 1996 . 
Cam Tuc 1997ft . 

Trees 13‘«K 199 Ttt 
tail ia*jcc 1997 . 
TrasMrec 1997R. 

Ettfi 15oc 1997.— - 

5li0Cl9M 

Trees 71+KlWabt — 
Trees tLpelOSMW- 

14k V*-! 

Trees IS’ape VBft 

Ewhiapsiwa— — 
Trees 9>30C iW9t$ 


Kere9) 

10.00 
12.73 
8W 
1 1 SO 
105 
976 
1187 
liS2 
1372 
II 84 
940 
783 
II El 
975 

8+7 

iiJ8 

921 

738 

899 
lies 
12.18 
1050 

900 


- loom 

4.97 101 i3 
9.06 101 II 
119 10*^ 
5 04 M>4 

S7I 105 
004 io9’« 
636 ■ 1 ■ IJ 
062 IIS's 
664 Mill 
7 12 10611 

7.12 99*a 

.'JO IN'# 
7.23 I07)| 
7.99 103'* 
7.72 121 If 
788 I0SJJ 
780 98,'. 

780 9EI> 
804 11SIJ 
7«E 127,’, 

8.13 1I« A 
807 1051: 


IQZii 


-Vj 107,*, 104 

98*4 974i 

107)1 H» 

Ill’s KB's 

nr,!, mil 
-4 Kill 1 154 
-A >17)3 MM3 
-4 MS,’, 106ft 
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FINANCIAL TIMES WEEKEND MAY 23/M A V 7Q ,oozt 


15 


ft- 

i 

i 


L'j : 

s 




CURRENCIES AND MONEY 


MARKETS REPORT 

Dollar struggles 


An upward revision in US first 
quarter GDP figures failed to 
bolster the dollar which fin- 
ished the week at the *ar rw tow 
levels where it started, sorites 
Philip Gawith . 

Trade was fairly light ah* art 
of the long weekend - US and 
UK markets are closed on Mon- 
day - and the dollar closed in 
London at DM1.6444 against 
the dollar from DM1.6438. 
Against the yen, it finished at 
Y 104.400 from Y104.405. 

There was little movement 
tn Europe, with the D-Mark fin- 
ishing at FFr3.417 a gahig* the 
French franc from FFr3.418. 

Sterling again traded in tan- 
dem with the dollar, finTahmg ’ 
virtually unchanged at 
DM2.4806 against the D-Mark 
and $1-5086 against the US cur- 
rency. 

■ The upward revision in US 
first quarter GDP growth to 3 
per cent from 2.6 per cent gave 
a midday fillip to the do llar 
This was soon erased by 


reports of sales of dollars tor 
Swiss francs. 

Mr Paul Chertkow, head of 
currency research at UBS in 
London, said this was simply a 
case ctf traders taking “a flyer" 
in thin trading ahead of the 
long weekend. He said the mar- 
ket was trying to break 
through fiw key level of Sfr L40 
a gainst the dollar. 

The UBS analyst said he 
remained of the view that the 
market was ignoring ftmda- 


■ Pawl In New Yortt 


May 27 

— UtaA — 

^fta*. ctaaa — 

Skpat 

12110 

12095 

i mm 

12102 

12069 

3 OBI 

1-3068 

12073 

IF 

12057 

120*0 


mentals. The key tor the dol- 
lar, said Mr Chertkow, would 
come when US short-term 
interest rates rose above those 
in Germany. 

■ In the futures the 

December contract finished 
five basis points tower at 93.78, 


Dollar 

DM per S' ■ 
1JB8‘ 


Yen per $ 
106 


Sterling 

Spare 


DM per E 


French franc 

FFrporDM 



AprS IBM «Uy 

Scarce: FT Graphite 


April isMMwr 



with 20,410 lots traded. The 
back months gave up more 

ground. 

Mr Bichard Phillips, analyst 
at brokers GNI, said the longer 
mid of the market had taken 
its toad from tm» gflm market 
where there had been a big 
cash seller. 

Earomark volumes were 
again good, with the December 
contract trading 48,000 lots. 
Sentiment was improved by 
comments from Mr Hans Tiet- 
meyer, Bundesbank, president, 
clarifying observations he 
made earlier in the week sug- 


gesting that interest rate 
reductions were on holtL 
Mr Tietmeyer said be had 
been referring to official rates, 
with the repo rate still free to 
falL The December contract 
continued its rally from the 
sell-off at the start of the week, 
c l osin g nina basis points up at 

am 

B In the UK money market the 
Bank of England provided 
assistance of £860m after fore- 
casting a £9 00 m shortage. 
Overnight money traded 
between 3 pm 1 cent and 5% per 


cent 

German call money rates fell 
sharply as banks disposed of 
surplus cash holdings ahead of 
the weekend. Overnight money 
rates were quoted at 4£0/5 per 
cent from 5.15/5.25 per cent. 
Rates are expected to rise 
above 5 per cent after the 
weekend. 

B The Greek drachma and the 
Portuguese escudo, both of 
which have been under pres- 
sure recently, bad toirly quiet 
days. The escudo closed at 
Esl04 from EslM.1 against the 


D-Mark, while the drachma 
was fixed firmer at Drl49 from 
DT150.070 on Thursday. 

Buying pressure was seen at 
ES104, with unconfirmed 
reports that the Bank of Portu- 
gal was in the market The cen- 
tral bank intervened on Thurs- 
day. 

sown cuw mw a M 

ityzr t s 

Hupey 10219 - 10422 102X10 • 1(00)0 
Ha 8 SUB - 363 TSO I74U0 - 1750-00 
m.-M <LM83 - DA5U 02972 - 0 7 9 4? 
Mnf 33615.1 . 336550 234200 - 234*10 
HmM 307000-287992 190330 - 1909X0 
UA£ 5-5338 - 55410 35715 - 35735 


POUND SPOT FORWARD- AGAINST THE HOUND 


May 27 

CtoskM 

rrid-polnt 

Change 
or day 

BUAsBar 

spread 

OaytalM 

N£i low 

Ons month 
Raw MPA 

Rate MPA 

One year Bank of 

Rate MPA Eng. index 

Europe 

Austria 

tsehl 

17.4879 

*00329 

812-946 

172070 17.4371 

17.4841 

03 

174786 

02 



1132 

Belgium 

(BftJ 

51.0637 

-00481 

469 - 804 

512380 512210 

51.0787 

-04 

512687 

-02 

508287 

03 

1154 

Denmark 

(DKO 

9.7161 

-0.0078 

119 - 182 

9.7418 9.7005 

8.7223 

-02 

9.7308 

-07 

9.7463 

-03 

1152 

FWanO 

(f-to 

&137B 

-0.0282 

282 - 460 

8.1030 8.1240 

. 






812 

Franca 

ff+r) 

8.4736 

-0.0076 

738-796 

82111 84533 

04813 

-07 

84866 

-05 

84648 

Ol 

1082 

Qennany 

(DM) 

2.4308 

-0LQ016 

798-816 

2.4046 Z47B6 

2X811 

-02 

24805 

OO 

24857 

06 

1242 

Greece 

(D-1 

372-024 

-0.096 

845 - 402 

374232 371.100 

to 



• 

. 

. 

re 

Irotond 

tfQ 

12191 

+02014 

184 - 198 

1.0208 1.0178 

12184 

-04 

122 

-04 

12213 

-02 

1042 

My 

W 

238022 

-a 82 

895 - 088 

241229 239620 

2408.12 

-22 

241827 

-OS 

245127 

-2-1 

772 

Luxembourg 

(Lh) 

51.0637 

-010481 

468 - 804 

512380 512210 

51.0787 

-04 

512037 

-02 

502287 

03 

1184 

Motherlands 

fl-n 

2.7881 

+OQO40 

872 - 090 

2.7824 2.7782 

2.7878 

0.1 

2.7885 

-0-1 

2.7713 

06 

1192 

Norway 

(NKrJ 

10.7462 

-0204 

429-404 

10.7748 ia7080 

107405 

08 

107631 

-03 

107442 

0.0 

05.7 

Portugal 

(Ea) 

258.113 

-0166 

788 - 4S7 

289200 257.712 

«l(Ml 

-42 

201233 

-42 

- 

. 

.. 

Spam 

m 

2WA47 

-0089 

375-518 

205.198 204274 

204212 

-2.7 

205.782 

-06 

200387 

-12 

86.1 

Sweden 

(SKi) 

112413 

-0.0483 

337-488 

11.7176 11.6174 

1 1.6628 

-22 

112333 

-12 

11.7823 

-12 

78.8 

Switzerland 

(SFrJ 

2.1177 

-00016 

168 - 188 

£1256 2.1114 

2.1193 

08 

2.1129 

09 

22887 

12 

117.7 

UK 

« 

- 

- 

- 

- 

- 


- 

- 

- 

. 

782 

Ecu 

— 

12891 

-00002 

888 - 896 

12931 12875 

1-29Q9 

-\3 

1281 

25 

12856 

03 

re 

sour 

- 

0.939796 

- 


• 



• 

. 


. 


Americas 

Argentina 

(Pe«o| 

1205 0 

-00022 

047 - 053 

12065 12020 








Brazil 

(Crt 

2781.88 

+4323 

137-232 

278520 273620 

- 


- 


. 

. 


Canada 

ICS 

2001 B 

-00012 

811 -BC8 

22933 2.0608 

22835 

-09 

22073 

-12 

2.7138 

-1.0 

862 

Mexico (New Peso) 

42933 

-00047 

848-017 

52060 <8639 

- 


- 

. 

. 

. 

- 

USA 

P J 

12080 

-00014 

083 - 088 

12098 12065 

1-807B 

06 

12092 

06 

12033 

04 

662 

Pacncmidcfle Eaat/AMea 
Australia (AS) 2.0582 

-0.0025 

571 -582 

22640 22528 

22575 

0.4 

22569 

04 

22548 

02 


Hong Kong 

(HK5) 

112561 

-02101 

524 - 577 

112840 112316 

11.647 

08 

11.9431 

04 

112701 

-at 

— 

India 

(FtaJ 

472251 

-0042 

118-386 

472500 472350 

- 


. 

. 

. 


_ 

Japan 

to 

157X03 

-0154 

381 - 594 

158290 157200 

157.103 

32 

150278 

3.1 

152.168 

34 

1842 

Malaysia 

(MS 

32053 

+00028 

042 - 083 

32070 32897 

- 


- 

. 

. 

- 

- 

New Zealand 

(NZI) 

26883 

-0.001 

843 - 682 

22685 22603 

22656 

03 

22692 

-04 

22767 

-04 

re 

PNIppmaa 

(Peso) 

40.8655 

-02642 

224-885 

402010 404220 

- 

to 

- 

. 

. 

- 

- 

Saudi Arabia 

(SR] 

52573 

-02053 

661 -685 

62618 08461 

- 

to 

re 

re 

to 

• 

re 

Singapore 

<SS 

23153 

-0001 

145-180 

22208 22120 

. 

to 

. 

. 

- 

- 

- 

S Africa (Com.) 

l (RJ 

5.4868 

-02198 

947 - 988 

52203 04860 

• 

to 

- 

. 

re 

• 

re 

SAttcalFbv) 

TO 

72033 

-02621 

870 - 186 

72481 7.1800 


to 

- 

re 

- 

1 

— 

South Korea 

(Won) 

121622 

-o m 

654 - 60S 

1217.72 1213.43 

- 

to 

- 

. 

- 

- 

- 

Taiwan 

ns 

40.8288 

-02455 

985 - 683 

408000 407700 

to 


. 

. 

’ - 

* 

re 

TMtand 

(BU 

38.0165 

-0.0202 

941 -588 

382440 372540 

to 


- 

- 

- 

- 

- 


tSDR ntk ter May 26. BUM* wmde h 4» Pond Spot UM oho* only the tat tame dacknal ptam. f«MM) am am Mi *<c« quoad to *w MM 
tax am knpBed by am* kernel iM Saring lodat afcrimd by to Be* of Engtand. 6 m moos «9* - TOOlSU. MW and MU+me H be* #* art 
Um Dofar Spc* tsbtss dartvod kwn THE WM/HBinERB CLOSMQ SPOT RAIEE. Son* rtbaa an reunited by the F.T. 


1 DOLLAR SPOT PGR 

WARD 

AGA 

:NS'< 

r THE DOLLAR? 






1 

May 27 

Ctoaksg 

mid-palm 

CtMnge 
an day 

BkVoftar 

mraed 

Day's mbf 

high low 

One month 
Rale MPA 

Three months 
Rate HP* 

One year J.P Morgan 
Rate KPA Max 

Boepe 

Austria 

(Seri 

112925 

♦02325 

900 

960 

11.8175 11.5815 

11.6 

-0.8 

112015 

-02 

112153 

0.7 

1030 

Belgium 

W 

332496 

-0.0005 

440 

550 

332940 332350 

332790 

-1.1 

332185 

-02 

338845 

-Ol 

104.4 

Denmark 

(DKrl 

64400 

+0.0003 

380 

410 

8.4836 6.4361 

62495 

-12 

8.4625 

-1.4 

6.468 

-04 

103.7 

Rrtand 

(PM) 

52843 

-02137 

890 

998 

5.4281 52883 

52969 

-as 

52988 

-03 

5.4118 

-02 

183 

Prance 

tm 

52190 

+0.0002 

180 

200 

52410 6.61B0 

5.0254 

-1.4 

5.6344 

-1.1 

5.8083 

02 

1043 

Germany 

n 

12444 

+02006 

440 

447 

1.8616 12433 

1.8457 

-02 

1247 

-02 

12405 

02 

104.7 

Creece 

9>> 

248210 

+0.166 

400 

820 

248.130 248200 

24728 

-62 

24821 

-33 

251.11 

-12 

08.4 

Ireland 

(tq 

14803 

-02034 

785- 

810 

1.4833 1.4773 

1.4789 

1.1 

12767 

12 

12733 

05 

re 

Italy 

U 

168028 

-426 

060 

12S 

159020 150020 

159528 

-03 

100343 

-32 

183028 

-35 

792 

Luxembourg 

OFr) 

328485 

-02006 

440- 

550 

33.9940 332350 

332785 

-1.1 

332195 

-02 

336845 

-0.1 

104.4 

NatManda 

n 

12482 

+02046 

479 - 

495 

12523 12470 

12494 

-02 

12508 

-0.8 

12438 

02 

104.0 

Norway 

fWrt 

7.1235 

+02039 

225 - 

245 

7.1490 7.1009 

7.1266 

-25 

7.126 

-02 

7.1Q35 

03 

953 

Portugal 

CE3) 

171.100 

+0.05 

900- 

300 

171.700 170860 

172265 

-62 

173885 

-6.0 

17305 

-4.1 

938 

Spain 

TO*J 

135225 

+026 

600- 

550 

126250 136.440 

135216 

-3.5 

136.61 

-32 

13325 

-23 

792 

Sweden 

(SKr) 

7.7188 

-02240 

131 - 

208 

7.7844 7.7088 

7.7354 

-22 

7.7814 

-22 

72219 

-1.4 

825 

Switzerland 

onj 

14038 

+02003 

033 - 

043 

1.4095 1.4030 

12037 

ai 

1.4028 

03 

1.3883 

1.1 

104.0 

UK 

« 

12086 

-02014 

083 - 

088 

12098 12055 

12078 

02 

12062 

30 

15033 

04 

68.7 

Ecu 


1.1703 

-02009 

700 - 

705 

1.1710 1.1654 

1.1879 

22 

1.1647 

1.9 

1.1778 

-00 

re 

SORT 

- 

1.41740 

, 

- 


- 

- 

- 

- 

- 

- 

- 

- 

Americas 

Argentina 

Ufteoj 

02977 

-02006 

978 - 

977 

02978 02975 

. 

. 

m 

. 

. 

. 

_ 

Brazf 

fCi] 

1644.05 

+304 

404- 

400 

1844.06 184420 

re 

• 

to 

- 

« 

- 

- 

Canada 


12807 

+02006 

804 - 

869 

12870 12846 

12858 

-1.8 

12819 

-12 

1.404 

-12 

83.5 

Metioo Maw Peso) 

32100 

. 

050- 

ISO 

32160 32050 

3211 

-0.4 

32128 

-02 

32202 

-03 

- 

USA 

n 

- 

. 

. 


• 

- 

- 

to 

• 

• 

- 

892 

RecMe/MWe East/Africa 
AuaMa (AS 12644 

-02004 

939 - 

648 

12672 12824 

12697 

-42 

12880 

-12 

12688 

-02 

882 

Hong Kong 

CHKfl 

7.7280 

+02005 

256 - 

285 

7.72® 7.7246 

7.72S5 

ai 

7J728 

-Ol 

7.7422 

-02 

- 

faidta 

Pel 

312713 

+02013 

675 - 

750 

312750 312875 

31.4513 

-3.1 

315883 

-22 

• 


re 

Japwi 

ro 

104400 

-0.005 

350 - 

450 

104.770 104200 

104.185 

22 

103785 

34 

10124 

39 

147.0 

Malaysia 

(MSI 

22888 

+0.0043 

885 - 

880 

25805 25780 

2j6813 

32 

25778 

1.7 

2.6086 

-02 

to 

New Zealand 

(N2S» 

1.7011 

+02008 

001 - 

021 

1.7025 12800 

1.7029 

-12 

1.7075 

-12 

1.7292 

-1.7 

to 

PN^pbies 

(Peso) 

262500 

-0.15 

000- 

000 

272600 282000 

- 


. 

. 

. 

- 

to 

Souri Arabia 

(SR) 

3.7602 

- 

500 - 

503 

3.750S 3.7600 

3.7506 

-02 

37628 

-02 

37655 

-04 

to 

Stagapore 

(SS) 

12346 

+02000 

345 - 

350 

12382 15340 

1234 

02 

12337 

02 

15358 

-Ol 

to 

S Africa (Com, 

TO 

32438 

-00097 

430- 

445 

3.8585 32420 

3.6593 

-6.1 

30878 

-42 

37843 

-33 

to 

SAtlcafh) 

TO 

4.T7S0 

-023 

650 - 

650 

42000 4.7660 

42087 

-82 

42875 

-7.7 

- 

- 


South Korea 


806250 

-0.6 

800- 

000 

606.700 800200 

80825 

-42 

81245 

-32 

83085 

-3.1 


Taiwan 

(I* 

27.0660 

-0206 

500- 

000 

27.1000 27.0200 

27.086 

-0.9 

27.125 

-02 

. 

. 


Thaland 


282000 

+021 

BOO - 

100 

252200 25. 1800 

252725 

-32 

25.4 

-32 

2528 

-37 



HOB iM* far Mn 28- BdMW nidi fc the Ooav Spot Mots them only *ve Mat tow dart* pkoae. Fonard am IN net Oractta t*iOM to the matte 
but we hpfad by aim Mam mm. UK Mail t ECU a» ki U3 currency. JLP. Morgan nominal Mom May 20. Bees Magi i 9MM0Q 


CROSS RATES AND DERIVATIVES 

















-j ^ ; k^j ^ 1 J 1 1 ui "11 * MW 


May 27 

BFr 

DKr 

FFr 

DM 

K 

L 

n 

N Kr 

Ee 

Pta 

«Kr 

at v 

e 

C* 

• 

Y 

Ecu 

May 27 

Ecu can. 

Rate 

Change 

% +/- tram 

96 spread 

□hr. 

Beigfcm 

pFr) 

100 

1003 

1060 

4259 

1208 

4700 

5.460 

21.08 

6052 

4002 

2360 

4.148 

1258 

4297 

2266 

9065 

3524 


rates 

against Ecu 

on day 

can. rets 

v worites) 

kid. 

Denmark 

(DKrJ 

0226 

10 

0725 

3554 

1248 

2470 

2270 

1127 

285.7 

2104 

1120 

3180 

1220 

3153 

1553 

1631 

1227 

Ireiwtd 

frftQjtfPB 

078108) 

+0000314 

-317 

825 

15 

France 

(FB) 

6023 

11.46 

10 

3327 

• 1202 

2831 

3399 

1368 

9045 

241.1 

15.79 

2488 

1-190 

2468 

1.780 

1952 

1521 

Nettwriande 

310672 

316461 

+000161 

-147 

558 

- 

Germany 

(DM] 

20.58 

3216 

3217 

1 

0.411 

9874 

1.124 

4233 

104.0 

6228 

4.882 

0254 

0403 

0843 

0808 

6348 

asM 

Belgium 

402123 

38.728 7 

+00333 

-120 

521 

9 

Ireland 

PE) 

5011. 

9534 

8218 

3435 

1 

2355 

3736 

1025 

2532 

2002 

1142 

2278 

0281 

3063 

1.481 

1542 

1265 

Qennany 

124864 

123020 

+020201 

-120 

529 

- 

Italy 

W 

3128 

0215 

0253 

0103 

0242 

100 

0118 

0448 

1075 

8517 

0485 

0288 

0042 

0087 

0263 

*«wa 

0054 

Prance 

853883 

659490 

-020178 

086 

3.17 

-7 

Nottartaitdi 

i (PD 

1821 

3.486 

3J041 

0890 

0285 

680.8 

1 

3288 

8358 

7321 

4.178 

0780 

0959 

0750 

0541 

56.49 

0462 

Danmaric 

7.43679 

755601 

+000088 

126 

242 

-11 

Norway 

(MM) 

4750 

8.037 

7288 

3308 

0948 

2233 

2503 

10 

2401 

1801 

1083 

1270 

0230 

1248 

1404 

1465 

1.189 

Spain 

164250 

159220 

- 

309 

083 

-22 

Portugal 

(ES) 

1078 

3,704 

3284 

0981 

0286 

07110 

1280 

4.185 

100 

79.18 

4510 

0821 

0287 

0211 

0565 

6122 

0409 

Portugal 

182264 

200258 

♦0375 

425 

020 

-27 

Spain 

■ PM 

2*38 

4.7S3 

4.147 

1214 

0489 

1174 

1264 

8258 

1282 

180 

5285 

1236 

0488 

1.029 

0738 

7726 

0231 








Sweden 

(SKr) 

4327 

8246 

7263 

3131 

027S 

2082 

3385 

9236 

221-7 

1752 

10 

1220 

0869 

1.797 

1280 

1352 

1.107 

NON 51M MEMBERS 






Switzerland 

(SFi) 

24.11 

4587 

4.002 

1.171 

0481 

1133 

1218 

5278 

1212 

9651 

5486 

1 

0472 

0288 

071% 

7428 

0608 

Greece 

284513 

287502 

-1.626 

8.73 

-421 

- 

UK 

» 

5128 

0715 

6277 

3481 

1218 

2400 

3786 

1075 

258.1 

20*4 

11.84 

3118 

1 

2282 

1508 

1575 

1288 

Italy 

1789.18 

186622 

-52 

4.06 

-0.01 

- 

Canada 

(CS) 

24.41 

4244 

4552 

1.188 

0487 

1147 

1233 

5.139 

1234 

97.71 

5584 

1.012 

0478 

1 

0721 

7029 

0216 

UK 

0786748 

0.778300 

-0.001418 

-153 

5.45 

- 

US 

(£) 

3324 

0438 

5218 

1244 

0678 

1590 

1248 

7.124 

1712 

1355 

7.714 

1404 

0063 

1268 

1 

1044 

0254 

Bar areW nare aw by B» Baepeae OarmWan. Cwrwidw 

are In daeesMbg rataSw afeengex 

Japan 

M 

3242 

6128 

5322 

15.75 

0470 

16238 

17.70 

682S 

1689 

1286 

7920 

1346 

6549 

1328 

9561 

1000 

8.184 

patcanhw* chmgre am tor Ecu; a porta ctenga rtanetaa a waoi oarwicy. Dtnrgmca shma me 

Ecu 

39.81 

7537 

8578 

1225 

0781 

1882 

2-163 

8240 

2002 

108.6 

8290 

1.643 

0776 

1228 

1.171 

1222 

1 

ratio hamren row apwadro tha pemwaaga rMnance MM«i Bta actud mntw red Ecu owww rwas 
Bar a eurency. and tw marimini pamfriod parcanWge dnMion of tha cuiancy** marhat rwa from m 

YWt Mr IflOO Orth Kroner. Fmneh Franc, (to 

redan Kroner, md 

smash Kroner por iac Bergen 

Rare. Bcwa. ua ana rteea pw loo. 







Eou osnoal rata. 


























pl/waa) Sterfng rt kalet Ueavapwidad bom ERM. A^rtnws tortoao by tha RnancUllmas. 

■ D-MARK nnrUHES 0MM) DM 125200 par DM 





■ M 

MW 

■ VW VWI1MB (DM) Yen 135 par Van 1 W 









no oen +♦. 



























Open 

Latest 

Change 

«gh 

Low Eat vol 

Open W. 



Open 

Latest 

Change 

nigh 

Low EM. vol 

Open W. 

Cf riLre 





pins 


Jun 

06065 

06061 

-00004 

08070 08062 

38.174 

121218 

Jw 


09580 

09564 

+00002 

02688 09658 

17279 

83167 

OUlCB 

Prtco 

jun 

r+u r j — 
Jtfr 

Alia 

Jun 

rUIO ■ 

Jul 

Alkl 

Sap 

08063 

08052 

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02063 0.6046 

3517 

11,233 

S«P 


02648 

02692 

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09648 09620 

1,008 

7206 








Dec 


02062 

-00008 

a 


_ 

SO 

208 

Dec 


- 

02703 

- 

- 

- 


216 

1,160 

t-425 

820 

723 

820 

- 

■ 

015 




















1460 

556 

523 

527 

- 

013 

0.45 




















1475 

3.11 

322 

3.95 

- 

050 

121 

■ SWISS fflANC FUTURES 0MM) SFT 125200 per Sft 




■ mUH RtniRn PMM> 862200 ptr£ 





1500 

1.07 

128 

346 ' 

040 

121 

124 




















1528 

019 

023 

128 

1-86 

389 

328 

Jun 

07107 

07102 

-00009 

07116 07086 

18204 

43130 

Jun 


12084 

15084 

•02026 

12006 12060 

7486 

43811 

1560 

- 

028 

029 

424 

423 

627 

Sep 

07110 

07110 

-00016 

07120 07104 

1,152 

4273 

Sap 


15060 

15000 

-02028 

12088 150(0 

1258 

2516 

Raufcaa OWfa w>L Crt eSXW Putt 3+2*0 . Fmr. dwfa open W-, CaW 812280 Puls 479X81 

Dec 

- 

07140 

- 

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0.7140 

5 

340 

Dec 


15060 

15050 

“ 

1.6060 12050 

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Margined Foreign Exchange 
Trading 

Fast Competitive Quotes 24 Hours 
Tfet 071-815 0400 or Fax 071-329 3919 


INVESTORS - TRADERS -CORPORATE TREASURERS 

SATQUOTE™ - Your single service for real time quotes. 
Futures * Options * Stocks * Forex * News * Via Satellite 

LONDON +71 3293377 NEW YORK +212 20*06 FRANKTORT+ 4969 440071 



WORLD INTEREST RATES 


MONEY RATES 

May 37 Over Ow Thre* 

night month tntftt 


I tfWB* PMIm pdnto of 10094 


Six 

nrihs 


On* Lomtx 
yanr Inter. 


Ota. 

mta 


Repo 


Bafghan 
unek ago 
Franca 
weak ago 

Germany 
week ego 


weak ago 
ttabl 

week a (|0 


week ego 

Swttzariand 

week ego 
US 

week ego 
Japan 
week ago 


54 

5% 

59* 

5ft 

59* 

7.40 

4-50 

- 


S* 

5ft 

51* 

516 

740 

420 

— 

5& 

69* 

59* 

69* 

HI 

5^40 

- 

0.75 

SB 

59* 

54 

51* 

514 

520 

- 

6.7# 

520 

525 

526 

520 

5.13 

620 

420 

520 

6.28 

525 

624 

428 

428 

620 

420 

623 

Si 

64 

51 

591 

6ft 

- 

- 

625 

53 

<hl 

8 

Bft 

»ft 

- 

- 


7* 

7% 

78 

7% 

6 


7,00 

725 

7% 

7% 

71 

79* 

7B 

- 

700 

726 

5.15 

6.17 

5.18 

6.18 

522 

- 

525 

- 

5.15 

5.17 

529 

627 

5.07 

— 

525 

- 

4M 

44 

41* 

41* 

41 

0625 

350 

— 

4j 

4A 

44 

4ft 

4ft 

0225 

320 

- 

41k 

4V. 

*i 

415 

5* 

- 

320 


Ai 

414 

4V* 

4« 

5* 

- 

320 

- 

2 

21* 

21* 

21 

ZH 

— 

1.78 

“ 

2 

21* 

2ft 

2ft 

29* 

- 

1.75 

- 


■ SU80R FT London 
Intertwnk Flxkia 

49* 

49* 

6 

61* 

re 

- 

- 

waek ago 

49* 

4ft 

49* 

59* 


"" 

“ 

US Dolar CDs 

4.10 

4/42 

4.79 

635 

“ 

- 

"" 

week ago 

4.10 

4.32 

422 

6.15 

• 

'■ 

— 

SOR linked Do 

39* 

34 

39* 

4 

“ 



weak ago 

391 

4 

4ft 

41 


*" - 




Open 

Sett price 

Chengs 

Hgh 

LOW 

EeL vol 

Open Int 

Jun 

9428 

8422 

+ 0.00 

8424 

9428 

15687 

152058 

Sap 

9426 

8629 

♦ 0.08 

9628 

8426 

87468 

165113 

Dec 

9420 

8428 

+029 

94.85 

9420 

401 99 

242793 

Ma- 

9424 

94.70 

+028 

94.78 

8424 

28671 

208960 

ll IM 

■1 MONTH MIOURA MTJMTI PUTURM (UFFQ LlOOOm pokrta of 1009 * 


Opwi 

Sett price 

Change 

Wrfi 

LOW 

BA vd 

Open IrL 

Jun 

9327 

8392 

+028 

9332 

8328 

2940 

90757 

Sep 

9327 

9337 

+ 0.10 

8397 

8329 

4403 

50481 

Dec 

8311 

8313 

+028 

8314 

8306 

2029 

40630 

Mar 

91.05 

9121 

+ 0.03 

9125 

8126 

504 

12831 

aim 

MMOMTHl 

BHOMH 8 

8 ntANC Ptmmn 0JFFQ 8Pr1m points c 4 10OH 


Open 

Sett price 

Change 

Mgh 

Low 

Eat vol 

Open kit 

Jun 

95.79 

96.78 

- 

8523 

96.78 

921 

21821 

Sap 

0021 

0578 

+aoi 

8527 

95.75 

4110 

21604 

Dec 

05.70 

0628 

_ 

96-75 

9520 

501 

7453 

Mar 

9521 

9620 

-023 

9622 

8520 

488 

6287 

■ HM 

■S MONTH RU WlaM OJFFE) Eculm pokus at 1009 * 



Open 

Sett price 

Ctwge 


Lon 

Eat vc 4 

Open Int 

Jwt 

93.92 

8420 

40.10 

94.04 

8322 

1955 

8738 

Sep 

04.18 

8420 

+ 0.11 

9422 

94,18 

1024 

12027 

Dec 

94.11 

94.10 

+ 0.11 

8423 

94.11 

248 

7786 

Mar 

8328 

8328 

+ 0.13 

9420 

9398 

187 

9036 


' LXTE Una fadid neXPT 




I MONTH ■URODOLLAR 8MM) $Tm points of 10099 


EURO CURRENCY INTEREST RATES 

7 ettya One Throe 


May 27 


Short 


notice 


montha months 


One 

year 


Jun 

Sep 

Deo 



S\-8^ 
6»*-6»8 
514-5*9 
54-8*8 
5*8 -5A 
8*-9% 
7% -7,5 
8 -4% 
4% -4h 

A'A 

3*-3% 

• mtata 


53«-5*4 

6*8-5% 

SH-Sh 

Slt-Si 

5S.-54 


5H- 


5fr-*a 

4A-4A 

sa-M 

*\ 

7 h-th 

2*9-34 

s\ 


■ 0 \ 

■<h 

■ th 


S& 

s*. 

5% 


5ft 

4ft 

Bft 

4*8 

7fl 


5*4 « Si 

5ft 5fl-5ft 
5ft 5ft -5ft 
5ft 5*1 -5ft 
5 h A-Sh 
ii* 11% - io*a 
■fit 7ft -79* 

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- 4ft 
Bft -^2 


Am 

S' 


w 

Jtai 

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4ft-4ft 

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7ft _ 

2ft -3ft 
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US 06tw «nd Yu mb** •*» 
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High Lo«* Eat. vat 
94.46 


4ft- 




2ft -2ft 

5ft- 5ft 




Open Sattp-tee Change 

Bixt 04,42 

5S 5S 4oar wo 

SMi 9M« +orn •*» 

BUM. WU7 *«.« 

MOWIM ■JWOOOIAAW lUPTO* 81 m pokPto* * 0 °^*, 

34.08 . 


13,715 

MAI 

M41 BfiSB 

94J9B 5.40B 


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SB - 5ft 
5ft -Sft 
5ft - 5ft 
Sft -Sft 
lift - 10ft 

7ft - 7ft 

a-.€ 

Tft-efi 

5*2 - 5ft 

Bft - til 
2fe«2A 
sa-sa 


Open ht 
64,135 
47.429 
SSfiBS 
37,210 


Open Lxtast Change High Low 

«L27 8625 -cue 8529 8625 

9428 94.82 -008 94.71 9469 

9411 0402 -0.09 9416 9400 

(MM) Blm par 100W 


Eat voi Open W. 
82202 357221 

78.056 390211 

126278 387292 


Jun 

Sep 

Dec 


9629 
85.15 8527 

0420 9429 


-002 

-008 

-029 


95.15 


9524 

9626 

9429 


2.732 14209 

1/447 16.613 

1277 7,362 


Ml Open Intweat Apr. me fcr pr*4m day 


; OXTIO W (LlFFg PMIm-pntHa of 1009t 



Dap 

Jim 

- PUTS - 
Sep 

Dec 

021 

am 

028 

018 

•. 020 

■ an 

ai5 

032 

an 

033 

020 

048 


UK INTEREST RATES 


LONDON MONEY RATES 

Maw XT Over- 7 days 

night notice 


One 

muttth 


Three Six 
month* monttis 


One 

year 


Srttrtjerk Staring 

5ft ' 3 

4ft - Ah 

5-4H 

5A - 3,ft 

sA - s\ 

511 -Si 

Staring CDs 




5*-Si 

5*4 - 5* 

sH - 5ft 

■freaexy BSta 

. 

. 

4ft - 4ft 

4ft - All 

- 

- 

Bank Eflta 

- 

- 

4B-4B 

4»*4ft 

5&-5S 

- 

Local suthortty depa. 

4B-4H 

4ti-4ii 

5i-4B 

5ft - 5 

Sft - sft 

(Sacouit Martiet daps 

5ft -3ft 

4ft -4ft 

- 

' 

- 

* 

UK daotag berk base tavSng ran Sft par cert from February 8, 1884 

Up to 1 1-3 3-6 89 

month month months months 

9-12 

momha 


3ft 


3*2 


Certe at Tat dap. (eiOO.OOCI 1ft 4 Sft 

Om« e> Tm, dap, wtaw Ci 00200 ta iftnc. OapMin aXhUmm tor eaah ftpa 
Jee. tenter wt* at dUaaunt 47891 pc. ECOO SM rata Sttg- Emm Rnenow Main up tfay May 31. 

ISO*. Agraad rata tor pvtt Jut 38. 1904 n Jul 25. 1884 Schanwa I & I* OXTpa fWanmca ism tor 

parinX fay 30. 1*94 m Mw Si. 1984 fichamea N 4 V 42Z2M. Rnanee Hsum toe Rat* 6*sm tern 
■■toy 1. 1994 

IWUMESaifTQESOOJOOpoMta of 10096 



Open 

Sett price 

Change 

High 

Low 

Est vol 

Open int 

JlX) 

94.71 

94.70 

-am 

94.73 

9429 

4320 

65161 

Sep 

3423 

8424 

- 

9420 

94.30 

12127 

80805 

Deo 

9323 

33.78 

-025 

9320 

9374 

20410 

127461 

Mar 

8326 

93.18 

-020 

9322 

8318 

5585 

62526 


18M Ml AFT. t4 Open mtvem fan. are lor prmtou day. 

■ 8WOHT amgmwQ ofhow b (UFFg E600.000 potna cr ioo% 


Strife 

Price 

Jun 

- CALL8 - 
Sep 

Dec 

Jun 

— PUTS - 
Sip 

Dec 

9480 

020 

312 

029 

0 

323 

021 

9475 

003 

a os 

025 

0.08 

340 

122 

0600 

0 

022 

002 

020 

0168 

124 


Em. vta. Hall Cota 3213 Pula 2*88- Piwtoue d^s <p«i It, CMa 179S08 Pia* 181866 


RASE LENDING RATES 


Jul 8ep 

ai8 - 024 

003 018 

0 008 

4126 PW* 3114 PrwfaUf drnfa owe tac Cat* 2821 06 Puli 188010 

fflBMP OfTlOim pJH=Q aftim pcirta oMODM 


Strike 

Rtoe 

Jut 

— CALLS - 

Sep 

Deo 

Jut 

- POTS - 
Sep 

Dec 

9678 

028 

020 

022 

niK 

016 

031 

9000 

021 

310 - 

an - 

023 

091 

046 

•820 

0 

026 

006 

027 

061 

065 

feLveLtaW, 

ode o ifa» no. pwriare der» <pwi «u art w nre 

9SM 




Sett price 

Change 

- 9024 

-029 

*466 

94*1 

-027 


8424 

-028 


8374 

-014 


Eet vd 
0 
50 
0 
0 


Open M. 
5977 
1824 
1913 
1079 


Mam A Conpony 425 

TUtad Dutt Bank ^..^625 

M&Bwfa 523 

•HnyAratadur 525 

Bank of Banda 525 

Banco BftaoVtao^e- 525 

Banker 1 Cypres 525 

Bank of Wind 326 

Berftottnde 52 s 

Baiud SooOml 325 

Bardaya Balk 525 

BdIBkcf MdEaat 526 

«Bro*nSt#tay3CoUd22S 
CLBankNodariond... 525 

cam* 225 

QydaadataBank 525 

The Ooopaiafee Bafc 525 

Couftacs 526 

CMLiank — „. 525 
CypnaPopulv Bank -523 


DuicuiLawta 029 

Bwfer Bank Limbed-. S2S 
RnenM&QBnBank- 9 
•Robert Flaming 5 Oo - 525 
GWa* 625 


1 MehQn 525 

Haftli Bank AflZxIdi. 525 

•HontnsSank 525 

HertaM«GenkprBk.52S 

•HUSsmuoL 625 

C. Hose & Co 525 

HontfoangSShencM 525 
Jteon Hodge Bar* — 525 
•Leopold Jaaapti &Sona 625 

LbyitaBwA 525 

MetfWBwALId — -526 

••Band Baric -.525 

*Mout8a*hD___— 6 

NaiWasWwer 523 

• n a aB rodieri 525 


" Rtadugha Ouarweee 
Ompmkai Lbrttad to no 
tangarsuhotaedes 
abarfdrgbwaWQA. 8 
Royal Bko( Scotland _ 625 
•SnWi&VAmnSn. 625 

TSB. 625 

•Unfed Bk of 525 

Ur*r 77uS Bank Pta— 625 

WeatmTiuGL 526 

MtAemVLflUMr— 625 
VorioHre Baric 625 

• Members o( British 
Meronant Banking & 
Securities Houses 
taaocMon 



FDTUBES 

&0PTI0NS 

TRADERS 
FOBAN EFnCZEUTT 
iCOWtnrotcovKi 

H 

1 III 

38 OOVGR STREET, LONDON WUC38B Hi 
TEL: 071 628 1133 FAX* 071 4950022 


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yemcaUfttud Hnu rcrbnJoilawoeOTI-XaaXBJ «■* 
eiBktoJkMI O wiaarOtaaLlrtaSgWMO. 


Duff Forecasts and Market Myths for 1994 

The US doiior will roar, dctloUcn wi;; ecntlnue: gold A recti corrmcdir.ca 
wtn I r.'tc, Japcn s eco-cmy 3 slock fiia/kct wl'l Co vreok. You old 
NOT read ire I In fulierMcncy ■ the iconoclastic Invosirncri loner 
Cia’l ;<»->+ f-3'Cu*".--.3n '.y o •--■'.o'li (c-co cr'/l C CT-cn : .'3 

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!071 <<:> 7', ijs a«6ft i 


FOREXIAFAX $ C Dm ¥ 

A • YEAH PUBLIC RECOflD OF ACCURATE SHOflT TERU faWBGfl QICHAWCE FOMCA8TWQ 

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16 


FINANCIAL TIMES WEEKEND MAY 2H/MAY 29 I*«d 


LONDON STOCK EXCHANGE; Dealings 


0 «aas_c( business darn shown below ta/e been taken with consent 
last Thmcta/s Sack Exchange OflSdaJ List and should not be 
without pemfesion. 

Details relate to those securities not induded in the FT Share Information 
Services. 

Unless otherwise indicated prices are in pence. The prices are those at 
which the business was done in the 24 hows up to 5 pm an Thursday and 
settled through the Stock Exchange Talisman system, they are not In order of 
sxecufccn but in ascending older which donates the day's highest and lowest 


For those securities in which no business was recorded hi Thursday’s 
Official List (he latest recorded business In the four previous days to often 
With the relevant data. 

Rule 535(2) stocks are not regulated by the International Stock Exchange 
of the United Kingdom and the Republic of Ireland Ltd. 

t Bargains at special prices. 4 Bargains done (fie previous day. 


British Funds, etc 


Tremay 12%% SOt 2000/03 - £12SjQ 

Corporation and County 
Stocks 

Aberdeen tOty cf) 1040% Hod Stk 2011 ■ 
E1«(2CUy»e: 

Barrfagar: Ccrp 2%K 3k IKetpr oft*) - 

Dudley Meecpcttai Borough Counci7K Ln 
Stt 20tg iH#a W o»tsSHn - £22% 

eatflq 

Letoaste Oty Counci 7% Ln 3k tolSTHeg 
kit Certs) fWP) ■ 5224 (2SMy«) 
MaoehesforfS-t-/ of) 114% Hee S« 2007 - 
£116% (25MV95 

MarctMster Carp 4% cam tod Stk - K2%4> 
STOfard (Crty afi 7* Ln Stk 201ftReg bit 
C«t*i{P/P) - 525-7 (2(B4y9fi 

UK Pubtfc Boards 

Afpftxriutf Mongasn Carp PIC S%« Deb 
Stk 93/95 ■ £96% 

Foreign Stocks, Bonds, etc- 
(coupons payable in London) 

GflMCKlKno'fcni cf)4% Rri Ln i9S2(Aa*f 
wtih Ac=epr CwtJ - £30 &4My94) 

Abbey ftatord SWjra C«wa PLC8%% 
ScbcnS SU Bds 2004(Br£VM - C9S% 
Abbey NancrsS Sfetag Capsid FLCto%% 
Subctd GW Bds 20Q2 (Br £ Var) - ElG5%4» 
Abbey Naicnat Treasury Serna PLC 7%M 
Gtd Nts 18S9 (Sr £ Var) - £38% 4 45 
pSMyW) 

Abbey Njcccal Trauuy Sera PLC 0% Gtd 
BO 2003 fSr E VaO - C9442 5. CO 45 
(24My94) 

Abbey MaQcnal Treasury Sera PLC 10%% 
GM :«b 1997 {Br Ctte) - £J07’S £4MyM) 
tear toc acoraa t! 4% Bds 2001 (BiS 1000G) - 
SI 77% 178 

Barciays Back PLC 64% Nta 290«{BitVM- 
cusj-£84% % 

Barclays Bank PLC 3% Perai Ira Beerf- 
nsC«sBd*IResirtMj»C11 - £33% (23My94) 
Barclays Berk PLC 9475% Undated Subod 
Nts - £97% (2SM-/941 
Barcfeye Bom PLC 12%% Sencr Subert 
BdS T997(Q£Vai) - £11345 
Barings PLC 9%% Pwp Suborn MS (ErEVan- 
ousj -£38% 

Slue CnSe Sndsme* PLC 104% Bis 2013 
(Bf£5C3C&1C00CC] - E113>S2S % GOMySfi 
Blue Ctode Z-dusOms Capital Id 10%% Cm 
Cap Bes 2GQ5(Bt£SOOO&10GGOQ) - £109% 

10 (23My94> 

Bradford & Bng«Y Butting SodetyCoOarad 
FlraRtoNS KCSRog MuaElGCO) - S9e% 
®%C3M>3«J 

EnWft Aevnys PLC 1G%% Bds 
2S08(3l£13CC&lXaC] - £112% 3 (2CMy94) 
BnMh Gas tot finance BV 8%% GtdNts 
1999%fS10CO.1Q0aa&100000) - 9105% 
fZSUfytt) 

Brash Css toff Rnaree BVJSaro Cpn Gtd 
Eds 2021 (Br SVaiJ - S114 (20My94) 

Brttah Gas PLC 7%% alts 1997 (0r £ Var) - 
£39% 100 % % KSMyfKj 
Srcsh Ces PLC 7%% Bds Z000 (Br £ Vs) - 
£97% (24M-/3S, 

Brtsh Gas H£5%% Bds 2003 <Br£V*)- 
£964 4 4 (2<My9<) 

Kriiisb Gas PLC 6^% Bds 2338 (Br E V»} - 
C101 EA'HySaj 
EsBsfc Gas PIC 7%% Bds 
2044£i£1££2,1033.lCOOa>G) - £81% 
BW/94J 

Brush Land Co PIC 6475% Bds 2123 (Br £ 
Vad - £93% (2GMy94) 

Brash To t uixi.- r- uraeadens PLC 7*s% Bds 
20C3 (Br £ Vsi) • £90% 

BcrrcaC Casroi CapterfCtessyJ Ld 9%% Cnv 
Cap Bds 2036 (Beg EIOGtQ - £150 
CRH Capca! Ld 54% Cnv Cop Bds 
2CCHBrS3XiG) - Si 19%4> 

C fate Bectric Power Co too 84% Nts 
1969(Bi£1000.1CCCa.:a30001 - £9345 475 
Oaiyttau 1 General TnmPLC 84% ExcJi 
Bds 2305 (BEIoanaSOOC) - £151 
OercmMKingdoro o$ 64% N» 1938 (& £ 
Var] - £9645$ 44> 

DannwHK^c-n cl} PUS (4a Nta 1998 (Br £ 
Vat) - £9945 (24MV94) 

Depto Ftoanca N.V. 7%% Qtd Bds 2003 IBr E 
Vat) » £862 (25My94) 

KC Group PIC «%% Cnv Bds 
2003(Br£1 000610000) - £100 (24My94) 

B> EnUvprtn nnanoe RC 8%% Gkl Exsh 
Bds 2008 (RS0 £5000) - £103% (Z4My£M) 

01 Entwialse Rranoe PLC 8%% Gtd &ccb 
Bds 200GOr£5Q00610000Q) - £99% 
Ct4My94( 

Bcpor1~b7|port Banh of Japan 64% CM Bds 
2000 (Br SSOQt? - S98 98% (24My94) 

Export ■Import Bmk of Japan 8%W GW Bda 
2001(BtS5000) - SI 0548 10549 (23My84) 
Far Eaaum TwaHa Ld 4% Bds 
200B(BtS1000C) - $1 19% 1 19.68 
FManopepuMc of) B%% Nts 1987 (Bl£ Vw) 

- £1054 (Z3My94) 

FMo>d(Raaubfic cd) 10%K Bda 
20<K(Br£100CKiaxn) - £105% 

General BeoMc CradX toll WZeraCpn Gtd 
Ms 1Q/7/96(BrS10000) - S8&3 (25My94) 
Guaranteed Export Rnanoe Deep PLC 9%H 
Gtd Bds 2008 (Br £ Vw) • £105% (?4My94) 
Gukiwas PLC 7%% Ms 1897 (Br £ Ite) - 
ESBfi$ 

Gurawss PLC 10%K Nts 1097 (Br £1000 6 
10000) - £107% (23MyS4) 

Guinness Ftoance BV 12% Gtd Na 
1996(Br£1 OOO&IOOOQ - £107.68 .735 .79 
(24MyW) 

Htnson PLC 9%% Crw Sutxxd 2006 (Br 
EVfc).E112%* 

Hanson PLC 10%% Bds 1997 (Br £VW) - 
£107% B3My34) 

rteksen CapBal Ld 7% Crw Cap Bds 2004 
(Re« - 129 £4Uy94) 

HydnM3uebec i2%%Oba&sHJfi/37 
2C1 5(Br£1 00006100000) - £132 (23My94] 
impaHal Cbenteal Industries PLC 94% Bds 
2005<erei 000410000) - £102% 
anportd Cttvrical hdusMM PLC 10% Bds 
2003(BrC1 00061 0000) - £104% 
imperial Chemical Industries PLC il%% Bds 
lOaStBrCSOCC) ■ £101 

International Bank for Rec 6 Dev 9%% Bds 
2C07 priSOOtJ) - £103% 45 (25Myfl4| 
batytRepuHc ol) 6%% Mte 2003 Pr 8 Vto) - 
saa% p4Wy94) 

Japan Dsveiopmant Bank 7% Gtd Bds 2000 
(BrSVaj-OSAtimm 
Kansai SecMc Power Co kc 7%% Nts 1908 
(&£Va»-E9945 7 

Kyushu Bectric Pomr Co me 8% Nta 1997 
{Br E Vm) - £100 161 
Land SsotfHes PLC 9%« Bds 
20Q7(Br£1 000610000) ■ £100 % 

Land Secwnss PLC B%% On Bds 
ZOf&PftOOQ - Cl 02 twm 
Land Seewfflas f%C 4%% Cm Bda 2004 
(Bt£S0006500aQ) - £110 % % % 

Lasno PLC 74% Qw Bda 
2005Qi£1 000610000) - £77^ %f 87%t 
Leeds Permanent BtOdtoQ Society 7%% Ms 
19S7[BrEVai) - £BS% 

Leeds Retmanent BoUng Soctoty 7%% Nts 
1998 (BrE V«l- £37% 
leads Permanent BuSdng Society 1Q%% 
Subord Bds 1908 (&£aM01 * £(03% 

Leeds Rennwwnt Bu*dtoq Society io%% 
Subotd Bds ahfi (Br EVtii) - £107.7 
(2SUy9£) 

UoMs Baft PLC 7%W Subord Bda 
20(M(Bi£Wrt«a) - £8?%* 

Uqos Ba* PIC S%% Subord Bds 20Z3 (Br 
£ Vail - E90.325 

London BeeMcHy PLC B% Bds 2003 (Br £ 
vwi - £ss% C2S»fly94) 

Marts 6 Spencer Finance PLC 7%% QW NW 
1098 (Br £ VG) - £88% firtMyM) 
uomapilUCtedt Capdai NV Zero Con Otd 
Nts 1994(BrSlO00) - $99% (KWtfK) 
Mmopditv Ftanca Ld 9%% Gtd Nts 19B7 
(Br EVaf) . £104% (24My9d) 

Natkatal Grid Co PLC 7%% Bds 1988 (Br £ 

- ES0i Xb «23fuMdf 

National 6 Prortnda) Bdo Society 8%% NB 
1998 (Br £ Vafl - £100* BSMyW 
iMtond Wesurinstar Bank PLC H>% 
Subcad Ms 2001 & EWr) - £112% 
CBMySfl 


NaSonal Westn*Bter Bank PLC 11%% Und> 
SubMs ElOOOJOw to PrflHeo - £107% 

esum 

NaKansI Wesininstar Bank PLC 11%% Und- 
SubNtm £lOOO(Ci«y to PrflBr - CTOS* 
Naflormrtde BufkSng Society 8%% Subart 
Nar 2018 (Br C Mar) - £88% % (25My04) 
Neriernrida BuMng Society 11%% Nta 1085 
(Br £50006100000) - £104% % 
NewZaahnd 9%% Bds 
19B5P£ia006100QO) - £102% 45 
_(ZSMy9^ 

Osaka Gaa Co Ld 6125% Bds 2003 pr £ 
Vto) - £95% P4MJI94) 

Pacific Bectric iMreSCaMe Co Ld 34% Bda 
2001(BrSiaaOO) - ST22 
Pertnsixar 6 Oitoms Stem Nsv Co 44% 
Cm Bds 2002(BrC1 0006100001 - £134% 
Raranstdra 6 Orlen&d Steam Nlw Co 11%% 
Bds 2014 (BrETOOOQ&IOOOOO) - £1 19d 
(30MyW) 

PowerGrw PLC S%% Bds 2003 (Br 
£100006100000) - £98% (2SMy94) 

RMC Capital Ld 84K Cnv CW> Bds 2004 (Br 
CS000650000) - Cljfl £24Myfl4) 

HTZ Canada toe 7%% Gtd Bds 
1938(BrfS0006iaoOOa) - £95% % 
Rothsdtlds Continuation Fk4CJ)Ld9% Pwp 
Subord Old Ms (BtfiVsrtous). £84% 
(2SMy94) 

Royal Bank of Scotland PLC 8%% Bus 
®SH®rfVm) - GB44S (Z5My94) 

Roya! Bank of SooBand PLC 104% Sttow 
Bds 2013 pr £ Vet) - £107% 4 (24Myfl4) 
Ftoyal Bank of Scotland RjG 10%% Subont 
Bds 1998 (Br£SOOQ62SOOO) • £1074 

(20My94) 

Royd insurance Hdss PLC 8%% SUtiord 
Bds 2003 ^r£ Vra)- £98% 

Sincere NautaaUon Corporation 676% Bds 
2003 (Br 51 000061 00000) - 5103 (25My94) 
Skandla C«ptal AB 11% Gtd Nta 
1S96(Br£l 0006610000) - £108% % 

R0My94| 

Snstttdtoa Beectwn Capital PLC 8%% Gtd 
Nts 1998 (&■ E Vai) - £99 £3My94) 

Sun ASanee Group PLC 10%% NB 1897Q3r 
£1000.100006100000) - £107% (23My94) 
SwedenOdnotkxn oQ 11%% Bds 19S5(ar 
£5000)- £1034 

Tarmac finance (Jersey) Ld 9%H Cnv Cep 
Bds 2008 (Rag £1000)- £l 05 
Tarmac Financ e (Jersey) Ld B%% Cm Cap 
Bds 20Qe(Br £5000650009 - £103% 

Tate 6 tot finance PLC 8% Old Bds 
1999(8iC1 00006100000) - £97% R5My94) 
Teseo Catstd Ld 9% Cm Cap Bds 2005(Reg 
cn- £ii7%% .se a 
Tosco Caprtai Ld 9% Cnv Cap Bds 
2099BrtS00O610Q0Q - £113% pSMytt) 
Denies Water PLC fti% CmSubardBda 
200GBr£S00065000q - £122 
Thames Water UMea finance PLC 10%% 
GK Bds 2001 - C1C84 (24MyW| 

3i totamoborM BV 74% Gtd Bds 2003 (Br C 
Vto) ■ p4My94) 

TcAyo Bectric Power Co Inc 7%% Nts 1898 
(Br£ Var) - £97% P5My94) 

Trafalgar House PLC 1D%% Bds 
2006(Bi£1 000610000) - £105% % 

(20M-/94) 

Treasury Corporation of Victoria 6%% Gtd 
Bds 2003 (Br £ Vat) - £06% % 

U-Mtog Marine Transport Corpwalan1%% 
Bds 2001 (Rag to Mud S100Q) - 396% 87 
United Kingdom 7%% Bds 200Z|Br$Var) - 
S38% 984 p4My9fl 

Warburgf5.G) Group PLC 9% Perp Subord 
Ms fftopNBBrQ - £89 (20My94) 

Welsh Watsr UMIM finsnee PLC 7%% Gtd 
Bds 2004 (BrCVtotaus) - £88.7 B4My94] 
Wsish Water UtBUes Rnenoe PUS 7%% Gtd 
Bds20l4(Br£VBr)(P/P) -£11% (25My94) 
Westpac Bwfidng Ctap 8% Sub Bds 28/5/ 
96rSrS5009' 5101% 702 
Wootwcit Bufldng Society 7% Nts 1996 (Br 
EVai) - £99% 100 (24My94) 

WOdw&i Bulbing Society 11%% Subord 
Nts 2001 - £1 1 1.1375 flAMjfiSf 
Eneqjie Beheer NeOetand B.V. S300m 675% 
Ms 2IV7/20a0(BrSVWs) - 9032 (24My94) 
SBAB SCI Dm FRg Rta Nts 22712/95 - £96, *< 
B0MJ94) 

SwedenKrndom oO £B00m 7%% Nta 37127 
97 - £99 % % 

SendenflOngaam ol) £2S(toi 7% tostrunents 

23rT2798 - £96 

SwedsnfKtogdoma4£3S0m7%% Bds 28777 
2000-£96&p4My94) 

Toyota Motor Credit Corporation S260m 5% 
Nts 1094 (BrS Vad - £98-62 C0My94) 

Sterling issues by Oversees 
Borrowers 

Aslan Development Bank td%% Ln Stk 
2008(0)- C118% (Z3Uy94) 

Eurcpean investment Bank 9% Ln Sik 2001 
(Peg)- £101% 

Bjropoan towstment Sank 9%% Ln Stk 
2009 - £107% CSMyM) 

Baopean Investment Bonk 10%% Ln Stk 
2004<Ro8) - £113% P3My94) . 

Intamedonal Bank tar Rec 5 De* 9%% Ln 
SBt20lO(Pafl)-£107 

totam Muia l Bank for Rec 6 Dm 11.5% Ln 
Stk 2003 - £119,** (23My94) 

Malaysia 194% Ln SA 2009(B) - £107 
£0My94) 

New Zealand 11%% Stk 20QBlRetO- £120 
(24My94) 

Neva ScoUaProvtooe oQ 11%% Ln Stk 2019 
-£123 

Petrdeoe Mexkranos 14%% Ln Stk 2008 - 
£122% 

SwedenpOngdam ol) 9%% Ln Stk 2D1«(Re^ 
-£1104(23My&4 

Swedengdngdom oq B%% Ln Stk2C14(Br) - 
£1104 1A (20My9fl 

Dansca n a d a Plpebiee Ld 19%% lat Mqg 
Pipe Una Bds 2007 - £143 (24My94) 
TrtSdBd 6 TobogoOlvpobSo ol) 124% Ur Stk 
2IX)9(ReS) - £109 

Listed Companies{excIuding 
Investment Trusts) 

Aberdeen Dust PLC Wts to eUb for Ord - S3 
eSMy9«) 

Aberdeen Dust PLC A Ms to Sub tor Ord - 
53(25My94) 

Abtraet Adas Fimd Sfts of NPVfQold PortfoSa) 
- S5475 (24My94) 

Aetna Matsyslan Growth fHmdfCaymerqui 
(wmoi-mw 1144 11-«34 11%G 
Albert fisher ttoup PLC ADR (10:11 - 8848 
Ataxandera Hdga PLC 'A*(FisLV)aRl IDp - 
34 (2QMy94) 

Alexon Graup PLC (L2Gp (NdQ Cm Cun Red 
W lap - 65 

ABwKyons PLC ADR (1:1) - 567 (25My9^ 
ABed-Lyone PLC 5%% Cun Prf £1 - SB 
AUed-Lyene PLC 7%% Cum Prf £1 - 81 

ABed-Lyon* PLC 5%% Una Iri Stk - £56% 
p)My04> 

MMtRyona PLC 64% Una U) S«t - £83 

0Oty94} 

Aatod-Lyone PLC 74% Ur>S Ln S&c 93/98 - 

£B3% 8% 

mm-ijfsrn RnandW Services PLC84H 
GUCnv3ubacd8d>2008 RegMtMCIOOO - 
£109410 4 

AHad-Lyont Rnandsl Servtcn nJS9%% Gtd 
Cm Subord Bda 20CWBr £ Var) - £1074 
AMs PLC 65% Cm Own NonAAg FM Prf 
£1-7446 

Amerioai Brands Inc She of Com Stk *3.1 25 
-$31%(2SMy94) 

Amentecn Corp She <4 Com Stk SI - 830% 

Andrews EySias Group PLC Cnv Prf SOp - 95 

AngRan Water PLC S%% hdsx-Lhtad LnS* 
2009P.10249Q - £135 % (ZfiMyB^ 
Angla-Saram Plai BaU oM PLC Wtotanta Id 
■ ib tor Ord - 23 p5My94) 

Angto-Eaahim namadens PLC 12%% Una 
Ln Sik asm - eioa z (ssuyo* 

Ammur Trust PLC 10%% Uns Ln Stk 01/M - 
£99(2411/94) 

AttwoodS PLC ADR (5n) • 89% 

Atwoods (finance) NV 8%p GU Red Cnv Prf 
flp.«SB3My94) 

Austin Read Group PLC 6% Cum Prf £1 -91 
5 (2SMy04) 

At a a u— i AnrtculhaalCoU)5»040-450 
Automated SeourflyMdsn) PLC 8% Cm Cum 
Red Prf £1 ■«% 


FT-SE ACTUARIES INDICES 

the FT-SE 100, FT-SE Mid 250 and FT-SE Actuates 350 indices and the 
FT-SE Actuaries industry Baskets are cafcutated by Hie International 
Stock Exchange of the United Kingdom and RepiAflc of Ireland Umfted. 
«? The International Stock BiChanga of the United Kingdom and Republic 
of Inlaid Limited 1994. Afl rights reserved. 

The FT-SE Actuates AW-Share index is eskwitead by The Financial 
Tunes Limited In conjunction with the Institute of Actuaries and the 
Faculty of ActuariM. O The Financial Times Limited 1994. AH rights 
reserved. 

The FT-SE 100. FT-SE MW 250 and FT-SE Actuaries 350 Inrtcaa. the 
FT-SE Actuates Industry Baskets and the FT-SE Actuaries Afl-Share 
index are merrtars of the FT-SE Actuates Share indiGM series which 
are calculated in accor danc e with a standard set of gro und rnte s 
estattished by The FteateW Times Umfted and London Stock Exchange 
In conjunction with the institute of Actuariea and the FOcutty of Actuaries. 

“FT-SE" and Tootsie" are joint trade marks and service man® or me 
London Stock Exchange and The Financial Timea Umfted. 


Automotive Product* PLC 34% Com Prf £1 • 
54B3MySM; 

Ayrtfm Mol* ProduSe PLC £W 2Sp ■ 92 
B4M04 

BA.T todwiriM PLC ACR (2% - 
*72.7W5«4» 

BET PLC ADH »;1) - $74 -'4 
BM Group PLC 44p (Naf) Cm Cun Red Prf 
top - so 

BOC Group PLC 65% Cum 2V Prf £1 • 55 
(23My94) 

BOC Group PLC 124% l» Lr Sa 20T2717 

- £126 CZSMyftC) 

BTp PLC 7Jp(N«J Cm Cum Red Prf TOp - 
2l2(25My94) 

DIR PLC A0R (4:1) - SS342 
Bonk of itewdiGovemor 3 Cod) Unto TCP 
Sdc Si* A Cl 6 C9 LKpideficn - C12fl 
BSMy94j 

Sark o» tata«J(Gov*mcr 6 Co ef) Ltofl* NCP 
Stk SnA K16W9 u*j»on • (£1155 
|2A4y94) 

Berner Homes Group PLC Otf «Jp - 138 a 
402 

Bacfeys PLC ADR (4:1) -53142% 

Barden Group PLC 7J25p (NeC Cm Bed Prf 
2Sp • 98 (2CM>94) 

Barden Group PLC HiSg Cum Rod Prf 
2005 lOp - 112 C24My»4j 
BMnoa PLC 74% Can 1* Prf £1 - 90 
CSMyeq 

Barings PLC 8% Cum 2nd PW SM - 99 
Barings PLC 94% NonCum Prf £1 - ,174 
BamsiD Exploration Ld Old PC41 • 10 
GOMyM! 

Bur 6 VABatse Amk) Truss AC Ord 2Sp - 
590 C5MyS4) 

Bass PLC AON Or.) -S1&45* 

Ban PLC 10%% Deb Stk 201B . £1 154 
04My94) 

Ben PLC 4%% Uni Ln Stk OBJ* 7 ■ EB9 
(24My94) 

Base PLC 74% un Ln Stk 92/57 - £90 
Bass toveatmetts PLC 7%% Un Lr Stk 92/ 
97 • £86% 

BeDway PLC 94% Cum Red Prf 2214 £1 - 
114p4My94) 

Beegsron d-y AS "B* Non tog Sha raas - 
NKIOeiB 7 7 .15 -33 8 9 9 .15 
D lrm m c ham MdsWea 6Atsg Soc 9%% 
Perm tot Berong Shs £1000 - ES8% a 
BLKkMood Hodge PLC SJWi C^r. Prf £1 - 
2S p5My9*J 

eucforeocf K*3g« PLC VA Cur Fed f* 4 Cl 
-34(25 M/M; 

Btock&usrar Emrament Carp Sks Com 
Stk 80-10 - 926% RSMy94i 
BtocMeys PLC 6% Cue Prf SCO - 30 
C3My94) 

Bhse Circle Industries PLC *Cfl (Irtf • 9468 
Btos Ctfcfo Industries PLC 54% 2re Coo Stk 
198472009 - £72 

Boas Co PLC ADR ati - S16 CS4yW| 
Bow^ape P_C TV: Iks Ln Si* 3C*9S • 

£90$ 

Bradford 6 B^giv/ Buadrg Sc&er/l 1%% 
firm ’« Bmrg S?s* E10CG3 - rt T8% 
t23My94j 

Bradford 6 Bngkr/ Bufctng Seeactr'J'ri 
Perm tot Beemg Eta £10000 - £129 
Brant Uaa miu n fl . PLC 9% Cum Red W ti 
. 69r24My94) 

Brant Wsfier Group F*.C Wfo ta Sub for Ord 
• 1<25My94i 

Bran ViaOia Group PlC ’Tv Pfo 2~ Cm 
Red Prf 2C0G-20C7 Cl ■ C% £Si*j9 4, 

Brant VTafter Grcua PlC 65S 3rd rtsvCun 
Cnv Red 2007/10 Ci - 2% 3 (25 My9S. 
BnsJd Wfafor PLC 8%-i Curr. toe Prf D - 
112% 

Bristol Wader Megs PLC Ord Cl - 920 
Bristol 6 West &u££--jg Seder/ 13% ". Pern 
Int Eeanng Shs C’-OCO - £123% 4% % 
BBtaraa Bteetog Scour? 13% Pern l-.i 
Beanng Sn £1000 - £123 4 % 

Brtfcn povxn PLC ACR (1C.I; - 557 A % .78 
% a .95 8% 

S/Wsti Afoan TVjrvjur: PLC >0%4 Deb Stk 
2011 - £1074 CZMyV) 

Bnus-VMiwncan T c ba ca a Co Ld 5K Cun prf 
SK £1 - 55 (ZWite) 

Bnush-Ainerican Tcoaccs Cc Ld ex 2nd 
Cun Prf Stk £1 - e6{24»/«] 

British rittrigs Group PLC 55% Cm Rad Prf 
£1 -70CZ5MV94) 

British Mdar KMgs PLC G% Red Cue 
ftQf895]£( - 105 BCr*/9B 
British PeSdsur. Co PLC B% Cum 1st P*t£l 
-89 

British Petrofecn Co PLC 9% Cun 2nd Prf 

CT - ta OSJWMl 

Brush Steel PLC ASP. (10=1) - 920% -9993 
1,** 073297 .1 .143295 
Bntah Sugv PLC 104% Rad Ceb Stk 2013 

- £116% A 7 A ff£M/94< 

Bratton Estate PLC 9^C% 1st Mtg Deb Stk 
2026 - E1C2 !24Wy94) 

Brtidon Estate PUC ii4% istMtgSebStk 
2023 -£119% (25My94t 
Brtuton Esa» PLC 11.75% 1st S*g Deo Stk 
2016 - £125% (2GMy94) 

Broadstcner Hldgs FLC 42% (Fmly 8%) 

Cum Prf £1 -58(23My®4j 
BUfitotA^J £ Co PLC Orci Sha 5p - 50 
BUmet(HJ>jreclgs PLC 8%% 2nd Cun Prf 
£1 - 11Q OttlySfi 

BUmarfrLPjHdgs FLC fl%* Cun Frf £1 - 

m 

Burnt PLC 7% Cm Uns Ln Stk 95/37 - £l06 
Bumrii Caatrol PLC 7%% Cum Ited Prf £1 - 
70 

Burnnh Castrol PLC 8% Cun M £1 -78 
CMMy94) 

Bumdene U nra Hu e dU PLC 15% Uns Ui Stk 
2007/13 - £117 p0My94) 

Buton Group PLC &% Gw Ltoe Ui Stk 19967 
2001 -E89 90 

Butte Mintog PLC Wta W Sub for Ord - 0% 
Butte Mning PLC 10% (Net) Cnv Cum Red 
Prf 1994 10p-4 

CstTyns PLC TO% CUn Prf CI . 120 
P5M»94) 

Calgary 6 Edmonton Radway Co 4% Cons 
Mb SHKGtd by C.P.LKl)2002 > £41 4 
P5 

Ca mb ridge water Co Gens Ord Stk - £5000 
(23My94) 

Cardo En^nMdng Grouo PLC 10%% Cun 
Red Prf Cl -113(24My94) 

Carbon ConsnunlcaOora PLC ADH (2nj - 828 
Cariton Gorman reasons PLC 7%% Cm 
Subod Bds 2007(Reg £5000) - £144% 
CaMtpBnr tnc Shs of Cora Stk $1 - Sia8%4> 
CemetMons PLC »Ws to St* to Ord - 31 
ESMy94) 

Centex Corporation She of Com Ok $025 - 
S28%COMyfl4) 

CMtonham 6 Gtoueesfor BuU Soc ii4% 
Pgrm tot Baatog She £50000 - £119% 
(24MyfM 

Ctiepstow Ba c ec o use PLCQtd2fip - £6% 
p0My94) 

CMkigtan CorparWcn PLC 9%% Cum fled 
Prf Cl - 00 pSMySK) 

ChWngron Corporation PLC 9% Cnv UnsLn 
Sdc 1999- £80 

Chuchbury Estates PLC 9% Uns LnStk 

2000 - C68 ffflMyW) 

ctsytmbe PLC 9J5% SUroid Cm Itoe Ln Stk 
2O0O/Q1 - SB7 P3My94) 

Oemtaid Place Holdings PLC 34% tod Mb 
Sdc -£38% (25My94) 

Coeta PWona PLC 4%% Una Ln Stk 2002/07 

- £87% (24My94) 

Coats Paeons PLC 04% Uns Ln sm 2002A17 

- £83 (2SMy94) 

Coats VJyMIa PLC «% Cum Prf n - 86 
BSMyeo) 

CohwXAJ a Co PLC Non.V ’A' Ord 20p - 
670 5 (23MyS4) 

CommereM Union PLC 3 JS% Cun Red nr 
£1-85 

Commerces Union PLC 8%H Cum tod Prf 
£1 - 108% 74 % 

CoromercM UMon PLC 84% Cum tod Prf 
£1 - 110%<5 

Cooperative Banh PLC 925% Non-Cun nd 
Prf £1 - 112 

Coolaon Stop PUS 49% PB Ord 50p - 38 

1 PLC 44% Cum Prf £1 - 71 

I PLC <L5p 0*ta) Cnv Red 
Cum Pig F*f lOp - 96 

' ‘ 1 PLC 5%% Uts Ln Stk 94/08 - 
SM«94) 

Coutaulds PLC 7%% Uns Ln Stk 200CV05 - 
£93% (ar)U yoq 

Owwtey Birfdng SoeWy 12%% Psnn Jmar- 
eet Bearing Sta £1000 - £11644 
My Mai 6 General Trust PLC Ord SOp - 
£14% 14J 

r PLC 496% Cum Prf £1 -75 

\ PLC B% Uns Ln Stk 92/97 - 

kSww'PLC 74% 2nd Deb Stk 91/90 - 
CS& 1 ’? eMMyffi) 

lebwtovne PLC 7%« Uns Ln Stk ZtXQAir - 
PLC 104% Dab Stk 95799 - £102% 
CUnQiv fisdPif £T • 


nnuuosl 


l15eSMy94) 

Qewhurst PLC Od 10p - 80 (2SMyS4t 
Domtoksi Energy PLC Onl 5o - 11 COMyai) 
rbdi ConaoBUtmi Mines Ld Ord Sto No Par 
tSua-2a(Z3My« 

S Ora IMngBExplorBtkHi Co PLC Ord lOp - 

bSi 1 rtCeSwW cnv cvm Red Prf Sfi 
-746 

WotoBBOEer 

% tnusa 1 1 % 2 2 


EnessonMU(f< 

BW- 


66677 


MM Property toveetmait CO Ld 10% lit 
Mtg Oab Stk 201 1 ■ £97 (ZtMy94) 
iio Dtaiey SCA. Shs RtlO (Depcnttry 
FtaoUptq - 335 40 5 7 50 
MO Dtener aCJL Shs TWO®) - FFEBSB 

%SS30 JJ6%J1 JS4 

ISAUnftafl EPLC 
1 6 1 ESA FRIO) (Br) - FR31JU 

ISA UNIS 

| - EO505 FFQ8 A .71 


prs. 


1 9 .14 3\ % A JB2 M aai 

.16JS16 1 

ewaumel PU3&nofonnir GM fin# Wes 
BSk»MmtosQtoed)-E2&9 
Ex-Land* PLC Worarfe to tub tar She - 25% 

assa- PLC 114% Cun Pit £1 • 
lOepQMyW) 

r^eratun Co PLC Ord Sdt Ep ■* 820 
nSoup PLC 7.7% Cm Cum Rad Prf 96f» 

put NdSiS»4»B Soetofy 114% Perm 
tot Saatmg gtacio qpo- nta%js»*y9^ 

m NaUarisl Ftarea Coro PLC 7% Cm 
Otoi Red Prf Cl - 148 WMyOfl 


finra PuC AOBflrt) - 98% pSUytMi 
Phone PIC 5*» lire Lfi SK 20OM39 - £72 
£SMy»4> 

RnAraaMRMnHUPBMM 

SOJSIfSfoAng Sta} - C40.9U ffOUffK 

Frv* Arrowe W Reeenrae Id Pig R*d Prf 
J0J)llU3t Mmged She) - 856501 

Fatoee Graeo PLC Ord So - 47 
Forte PLC 9.1% Una In S8( 9SAKXC- 
£100% 1% SWrft] 

Fortaun 6 Heron PLC Oa get Cl -C81% 

Baum 

fmnOf Hotel PLC 44% Cn* Cur, Red Prt 
Ct - n Hi gaum 

Ffleody Hotala PLC 7% CW Gum Red M Ct 
. B9 |29My94) 

GXN PLC ADR (1.1) - SBJZ »32 03MyM 
GS Ont Jfonfcur 9ta DKKB-OK5M 
/25MyB4) 

GN Groat Neoae Huge La She OKicO - 
CK5ULS2 i7Tf tjV '] 

GJWUB*) PLC W%% 2Hi CWM £l - 90 

l%2%e*My94) 

G-TJUuSterutelF jnd Ld Pig M M TO - 

ESfija !24MySt) 

GT. Grs* Growth Feed Ld Ora 9BD1 • £20 
Canent Acuiant PLC 7%H Cun krd fi*£! 
-99% 1* 

Generic AcodenC PLC 64% Cun tod Prt £f 
- 109% 13 

Gerent Beane Co PUS AM ftrl* - W4 

GCaxo Gam Ld &4% Une Lp 9» asms SOp 

- 4B C20My94) 

GUM coup Ld 7%% Uu Lr 9Bt 66796 SCfo 
-a SZSur/W 

Qtooal Stack Ir u ee w ent a Ld P»a Red Rrt 
Saj^r-KH^snoemePertfoU - 5162 
exfi «) 

OhBwmi tnerr u ao na f PLC 104% One Ln 3ta 
34/39 - £9S 

Good* Dursnt PIC 65% Sun PK 50D - a 
7{24My84 ) 

GootfxJd Otsuo PIS 7% Car Cue; Rid Pf 
£1 - 73 C-4WV94V 

CrarcJ Uen&ekun PLC 5% CLr* £i - S3 

P4*ly9*, 

Grand Mctrooekw. PLC fl%% Cur. Rif Cl - 
63% (25My94) 

Oreat Potand ESMM PLC 94% fetUfo) 

Deb stk 2Cie • Ei37 eewreg 
Gnu Ur/NMSS«PX 5%% Rm> Ue 
LrSOi-SZa i2SU>»f/ 

GrnerdTs Crow PLC 8% Cun Prt El - tSi 
fzaiy9fl 

Craerato Grooo PLC H%% MB 9R JOM . 
£l?3S5My94) 

Craeialts Group PLS 7% Cm Sfomd 9de 
2003 (Reg) . £112 4 

GnenaHi Grout PlC 7% Cm Subord Bob 
S3C3 BC - £ 1 13% 

Gurreea PLC ADR «:1> - flfri B 4* 
G&raasa F.«m irt Ace Pjnd Ld Psg Ma Prt 
Sc ciiSag Htr Yana Bd fit - tT64i 
(MW.S4I 

HSBC tost PL C Ond SH~ -nong Korn 
R*i-5HB7i 3 2 XV 3 2.1224% 
4% ertCB 2282 £2 98828 9 3 12335 
159134 2l 3 42*081 JT38 % 43C281 
.622 STiB 47665 SCCHS J9 478 566 
HSBC wags PLC 1 1 89% SUbod Bda 20C2 
JtoQ) - ET10C 9% 13 % 

Nl!» Burdtog Scck, •%% Per-. Irt Bear- 
vo Shs £50000 - £96% 2 
KXk.1 HcALrigx PLC Cat 5p ■ 61 3 
M» t- gmm tfWfffte 555% Cum Prf 
£1-77 

tfarnsrs PLS Non UX CT - 8&SSMy»c 

Ha n ane nu i PLC CW 2 ia * 353 < 3 % 6 8 
7% 8 60 80 

Haroys A Hansons PLC Ors Se - 7*6 

HarMpcUS ynnu Co CM £w - tl3GDf 
4J30* 

Hasbro toe Sta si Com Stk 1850 - 931*83 
<2*My94l 

Havre Greta PLC 10% CUr. Prf Ct - 113 
24Uy9<j 

KC 8 Sranr. Hfoga PLC 14% tat lag Oab Bto 

2000/33 - £121 C3UyH1 
HTsc out Hugs PLC CIU.1) - $1C3 
(20My94) 

Hexrnes fitxecooo Group nc Sh» sf Com Sat 
$325-25 

Hcuvng F-ianoe CaraonPon Ld 1!%% Deb 
Stk 2316 - Cl 13% % 

IS Htnimjsn Fund *W Ord HCC1 - $15% 
15.68 16.1 

Ketend Group PLC Ci-r Cum Red Prf 2Qp - 
118 % J1 4 

tuusaral Coraoi SeratoM Gro tHCOrd TOc - 
147 8 9 

too Stock Bctange cf UKlftoo cf *Ld 7%% 
Mtg Deo Stk 90/96 • £99 
tosh Ute PLC Ord trStLlC - S2C2 o 2D0 
JenSre liameeon rtdga U Ord S0J5 (Hong 
Korg Ragotn) - $835 $M8t 241 CS1487 
% 45 2 .14 .154996 4 J 4388 .4522* % 
49.735*492 3 

Jankne Sbaroge Kdgs Ld (M SCOS (Bar- 
muda RegMK) - 048 B3My94) 

Jjrdtoe Soiegic HUga Ld Ord $0.05 (Hong 
Keng Fto»star) - £283 $KXLS 481 f 
4813 

Jessups PLC 74pfNfo) Crw Cun Bad Prf 
SOp - 1123 

Johnson 6 firth Brown FLC 11J)S% Cbm W 
£1 - 110 (2SMy94) 

Johrsoo Gnat Cleaners PIC 740 (Net) Cm 
Cun Rad Prf lOp - 152 
Johnaton Group PLC 10% Cun Wf £1 - 10S 
Karanng Motor Group PIC 44% (pmfy 7%) 
Cum Prf £1 -7S(Z3Mry»4) 

Koraa-Europe Find Ld SraOOR 10 Br) SIX.10 
(Cpnq-$4to0|2SMy94) 

Kvaemer AS. fieo A SRa NK12J3B - 
NK357%4 

Ledbroka Group RC ADH (Irt) - $248$ 
Lanont Hkfga PLC 10% &d Cum Prf Cf - 
114 p3Uy94j 

Land SaouHUaa RC 9% lat Oab SOI 98/ 
2001 - £103 

LASMO PLC 1ft% Dab Stk 2009 - £107 
(24My9*) 

LatwnUameel PLC 8% Cura Prf ET - 70 
(23My94) 

Labom Baatoum Mow Ld Ord RO01 -35 

caum 

Leeds 6 Hofbock BuOdtog Sooeey 13%% 
Perm tot Bearing Sha £1000 - £123 
Leads Pormenent BukSng Society 13%% 
Penn tot Bearing ES0000 - £135% % .675 
(WMT94) 

LwlsUatol) PLC 7% Cum Prf Bh £1 -83 
CSMy94) 

Lowts(Jonn)Pannarrfilp PIC 5% Cum fit Stk 
£1 - 63 pSMy94) 

Lmls(JUv4Parinarah(p PIC 7%% Cum Prf 
Stk Cl -79(24My9q 
Lkaiheart PLC Cnv Cum Red Prf 20p- 95 
(23My94) 

London Securities PLC Ord Ip - 4 (24My94) 
Lonrtio PLC ADR Ctrl) - S2.12 .19 
Lonriw PLC 10%% 1st Mtg Deb Stk 9772002 

- £103% (B4My94J 

Look*™ PLC 8% Cnv Cum Red Prf £1 - 132 
4 

LrMrfWm) 8 Co PIC 0.75% Cum Cm fled Prf 
£1 -97 9% fWAA®*) 

LmerfHoberi H) 8 Co PLC 874% (Ne8 Cnv 
Cum fled Prf IDp - 34 (25My94) 

Lucas todunkn PLC 6%W 1st Prf Cl - 79 
(23My94) 

MEPC PLC 345% Cun Prt Stk £1 - S3 
(234*7*4) 

MEPC PLC B% Una Ln Stk 2000/06 ■ C95% 
MB*C PLC 10%% Uns Ln Stk 2032 - £111% 
|20MyB4) 

McCtolhy A sane PLC 9.73% Cum Rad Prf 
2003 Cf -87 

McCarthy 8 Stone PlC 7% Cnv Uns Ln Stk 
9SAH - £75 (29rtyS4) 

Mctoamey firoperttes PLC 'A' Ord kfiTt.10 - 

IPflM 

M*nchm»*r Ship Canto Co *9S Perp 2nd Mtg 
OoDafftoj) - £42 p4My9fi 

MflWWn CHentd fotentdoml Ld Od SOlOS 
“■ ' I flea -Cl SH1 14483 472916 


Maka A Spencer PLC ADR flfcl] - $38% 
37.16 

Marta 6 Spencer PLC 7% Cum Prf £1 - BO 
Medma PLC ADR (4;1) - S3.73 (24My9*) 
Marctant Retai (teup PLC 8VH Cm Um 
Ln Stk B8/B4 - £88 9 

Mercuy Int e mattanal (nv Trust Ld Ptg Had 
Prf ip Ifieeerve Fund) - £484243 p4Myfl4) 
Maraoy Docka 6 Horoour Co 6%% Bad Deb 
Stk 9699- £80 

MW-Southom Water PLC 10% fled Dab 5ft 
flSffla - £102 (24My94j 
Mkfland Bank PLC 14% Subont Una Ln Stk 
2002707 - E124% 

MW Corporation Com Shs of M»V - 5342 
(20M1/94) 

Maura Ctnrtotte tonestments PLC 10%H Id 
Mlg Deb Stk 2014 - £107.7625 12 
(25My9«) 

MudHoarfAA jjGraup BjC 7% Cum Prf £1 ■ 
74(2SMy94) 

NfC PLC 7%% Cm Bds 2007RRag] - £102 
NMC Group PLC Warrants ta sub for Shs - 
137 

NMC Group PLC 7.75P (Net) Cum Rad Cm 
Prf top - 126 

“ r PLC ADR (10:1) -!«5% 

' ' t PLC 12%% 

I Ln Stk 2004 - £122 C25MytH) 
r Co Perp *% Cons 
. PJ - £41 C25My>*y 
<q Society 12%% Perm 
sma Bearing Sta £1000 - HiS 6 
lonh <* Ertfand BuOdtog Scdety 12%% 
Perm In Beafog CC100Q ■ £117% 

1 Ld R 0.10 - E&.105 

Ld 8% Une Ln Ok 

PJ SmM J £1 ■ fia 

1 PLC &d 2Sp - 215 (2MMM 
: PLC 7%% Cum Prf CI - 

—-T — PLC 10% cun Prf £1 - 

118 % GMMySM) 

Wd) Cnv Cun Non- 

vtg Rt £| - 125 

Pe^^oAPLC8o(N«)CwnCmR«jPrf 
IDp - 90 C3My9<) 

PeuitaieSA OrdStaNPVfflrh Danan u 
A IQ - BP1082E 62 88 8 
Pfortabrook Group PLC 6J5% Cm Prf 91/ 

_ 2001 lOp - 67 

Ptotpewmat fiasnums ua Qm Rubs . ass 

Pw«w3*n PCC 4QH (itklj - C71.7a^ 

rrranier HeoBh Group PLC CM Id - 2 



RPH (jj 4lj% Ura '_■» » 200L06 - C38 

7fTinyr*i 

BPH id 9% Uta Ln Ste 9BOW4 • C90 
RSMyM 

RTZ Copnoon PlC 1329% 'A' Cun Prf 
CI.94 

atTZCarpormoa PUS US - B* Cera Prf 
Ojitad ■ 57 (EWyM 
flat* Secacaace PLC AtWifcri-tt.** 
ctukm 

Hank oVnaai AM CMl - <11% , 
mdOt 5 Cumae PLC 9% Gum MW- 5S% 
7 

(fogwt SorDdrasen PLC 8% Con fhf £1 - 5* 

anAyMOA 

Ik ato n orc » Pkw£n y «*ertogPLC 3% 

CUT Had Prf £1 ■ *500M/*0 
n B tn B) o aPeerarErBtoeratoqWJ5373% 
cur fit £f ■ aeoarfriw 
ItawHC iT%%Cnm WCT - f» 
SWyM 

nayac Bark ert Boooand Grouo PLC 11% 

cunfwer - nvcawv**) 

Uh GrMP PLC 6% ura Ln » 93.66 ■ 
ctesawiM 

AaMtflwM PLC 5.75% Cum Cnv Red 
nf-90CZ3My94 

3HK oueneaa FtadLdCrd II -98% 

rt 

SHUT 8 Smacto CO PLC ADR a>) - 
c<3teite<4 

Smuryt-". PLC ADR (1 11 - $842 CSMyM 
SaenoDUiaJ) PLC ■% tod Ura In Sn - C9C>2 
S3uy9*? 

» uaraaxa 5 Obarai tatfrnr Co 4% Mg 
TJt V8C Bat ram Z3® - C47 B**4y9P 
Soror hsm PLC V Ok) 3p - C100 
ZuarfM: 

Scaraorae Hdga PUC 575% Qw Cwn Had 
WET - ;3409Mrfm 

taamu Hya a B ec tri c PLC &d 90p ■ 3S3 3 
32 %44 32%SS% 48 8 8 .18 % -68 7 
7%8%B8f% 

Seotait Ue Aeaaasoe Co 7%% Ura Lr Stk 
97.2082 - £67 EMMrfK) 

Sootfiab UeeopaSbr* Pfoserty PLC td%% 
lat Mte GeO 9k 2018 - £102% 
aoatnro 8 foawc— PUS 7% Cnv Cum Prf 
C2-S96S 

ScMtoh Ptomr PUS Ord SOp - 380 t 2 2 32 
% 3 J2 % * 32 % % 5 % % 48 8 % 7 % 

889.16 

Saw PtMt Ctoeang PLC 8% maat-Utad 
Me 9W K*2*3*«%l ■ Oie C4MV9*) 
5h*K rranocnorradtogCe PLC Ckd She iBD 
25e(Cpn teQ-TOB 

StaUd GrcraJ PLC CM 3p - 16% «4MyWt 
Sk*k Croue PLC 5A*% (NeQ Cm Cun ftoa 
fc-Ef -rsBMWMJ 

Srecna Rracea (UK) PLS 7475fl(Neg CUn 
flae Rrf She tots - 7» 83 93% 

SkSaa Odud PLC /%% ura Ui Sbi 20030* 
- 04 

Sonet Crouo PLC M3R Q.i: - $1.7- 
Snor Enwmmng PLC 7.7SH Qan Rad Prt 
JC*7 S3 - 01 l 23Wy9t) 

StoOBP BkMtog Society 12%H Perm ka 
Bavrg Sha £1000 - £118% % 9% 

Star ita Ctnr PlC *a‘ Waneete 10 wto 
for Qrt ■ £1% Ct4My$4) 

Srata saw Court FLC UTN Suogro Une Ml 
96i 2X1 - £110% Q0Nt|(M1 
Jtor (WJi! Croup PuC *8* are lOp • it 7 
Curi%i 

Smart ;w.k: 3rtxc PUC S%% Rad Uha Ln 
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rtAMTHyrm nuwni nvcscKoe* 


MT*** 







FINANCIAL TIMES WEEKEND MAY 28/MAY 29 1994 


LONDON STOCK EXCHANGE 


MARKET REPORT 


■ ^-a ■ 

■vj . r-,. W H 
fC 


s. -.^la 


;!j v ! l 


\ >i\!' 


. s'\: S> 


. N ■ . ; 'iA 




r^'3. 


New rate worries drive Footsie below 3,000 


By Steve Thompson 

A confident opening performance 
by HE equities was wiped out by a 
series of blows delivered first from 
Germany and than from tbs United 
States, which triggered a flurry of 
heavy selling pressure originating 
in tbs fixtures markets. News yes- 
terday suggested that German rates 
had effectively bottomed out while 
there were worrying signs inflation- 
ary pressures in the US. 

The FT-SE 100 index plunged 
below the 3, 000-mark for the first 
time since September 1933, mfltog 
another turbulent session a net 53.3 
lower at 2£6&4, a fall of over 160 
points, or 5 per cent on the week. 
The UK market's second-line stocks 
also fell heavily, with the FT-SE 
Mid-250 index retreating 44.1 to 
3,572-3, leaving the index .142 paints. 


TRADING VOLUME 


■ Uqfor Stocks Yesterday 

v«t Cta*« Day* 


or 3^ per cent, tower over the five- 
day period. 

The US inflationary worries per- 
vading international bond ma rkets 
also gripped UK gilts where long- 
dated issues, which began the day 
around V4 firmer but cam ** off 
sharply and closed with tosses in 
excess of a point, with flggi«»rv show- 
ing concern over next Tuesday’s 
May MO money snpply figures. 
Dealers said an MO figure showing 
year-on-year growth in excess of 7 
par cent could bring rerawed pres- 
sure. 

The UK equity market, together 
with most European bourses, has 
been badly hit this week by worries 
that German interest rates may 
have bottomed out in the current 
cycle. 

The gloom encompassing the Lon- 
don market at the close was Car 


Account P— flog Paftre 
Panama: 

Mp> H *m Jan 

Option DtdvWfom: 

Jin 2 Jui 16 Jun 


Aooo ntOw 

JLn 13 Jin g J 

•Maw tin* inttifli may trim plac* 


removed from the lively mood at 
the outset, whan marketmakers 
hoisted opening levels after taking 
in details of the latest Confedera- 
tion of British Industry Survey 
which revealed that factory orders 
reached a five-year high in 
May. 

The survey, which also high- 
lighted optimism that economic 
recovery is filtering through to 
manufacturing sectors, saw the 


FT-SE 100 race to a session high of 
3,033.7, op 14.4, within an hour of 
the opening. 

After the Initial flush of institu- 
tional buying, the market ground to 
a halt and lost heart as sell trades 
in the FT-SE future weakened senti- 
ment in the cash mar ket 

The real pressure across the mar- 
ket emerged around midday, when 
a burst of selling of the FT-SE 
fixture, reportedly of a simfair size 
to that which triggered Wednes- 
day's market sell-off, drove the 
future lower and saw the FT-SE 100 
index plunge through 3,000 as the 
market reacted to the higher than 
expected increase in US gross 
domestic product and the deflator 
figure. 

With little sign of support the 100 
index dropped rapidly to reach the 
day's low point of 2,959.5, with other 


European markets similarly hit. 
The low point coincided with details 
of the testimony given to the US 
Senate Banking Committee by Fed- 
eral chairman Mr Alan Greenspan, 
who spoke of concern at the dollar's 
lack of response to monetary policy 
moves. 

A senior trader in the London 
equity market spoke of “investor 
fatigue” at the close of a difficult 
week. There was no real selling 
pressure in the cash market, dealers 
insisted- “T here Is nothing in this 
market to tempt the buyers who 
continue to give the market a wide 
berth,” said the head of market- 
making at one of the big UK Inte- 
grated houses. 

Turnover of 589.8m shares was 
described as “unremarkable, given, 
that the market has dropped almost 
60 points”. 


FT-SE-A All-Share Index 


1,675 

1.625 --YSp- 

ijbo y- 

1575 ■ — - 
1,550 - — 

1,525 - - ■ 

1.800 I 5 - 


EqnHy Shares Tratiad 

Tlmww by volume (rrtffl onj. Eweferteg-. 
Wm-marivat bugirewa and overran turnover 
1,000 - 



Soote FT aapJiM 1W 

■ Key Indicators 

Indices and ratios 

FT-SE Mid 250 
FT-SE-A 350 
FT-SE-A A*-Share 
FT-SE-A AB-Share yield 
FT Ordinary Index 
FT-SE-A Non Fins p/o 
FT-SE 100 Fut Jun 
10 yr Gift yield 
Long gift/equity yld ratio: 


3572.3 

1505.9 

1500.88 

331 

2347.1 

19.31 

29400 

8.52 

2^1 


EQUITY FUTURES AND OPTIONS TRADING 


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2SM£ 


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ftircWyst 


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am. Aaroapoart 

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BrfcMi Oast 

BMafaland 

BritfrftSMTf 

Burs) 

BumtfiCMnfft 

Birton 

cabtaA Wraf 
CsdbriyBt htop p m t 
Crior Group 

Ooton Comma, t 
CaaHVhaUt 
Ceram. U rtonfr 
Cookaon 
CamiMst 
D rig«y 
Da LaBuaf- 
crons 
Caawn Sect 
EM MUM Beet 
Eng C?*u Cfciys 
EnterprtM trl 
Euroriirwnl Ltofta 
fm 
/N ona 

Foreign 4 CoL LT. 

FaWt 

Qan. Attktanct 

Qemrai Bact-t 

Gtaot 

Gtwmad 

CtaWef 

OridULt 

S3 

GKN 

Quhaawt 
wsac (76p short 


KmmCralWd 


2.100 64^ 
a.7oo mb 
I jOOO S3 

2/00 san 
186 

046 ass 

<300 230 

836 271 

834 543 

434 354 

801 910 

8.100 410 
7A00 laoh 

1/300 413*2 

580 705 

MOO 880 

1.100 288 
5400 381*2 
4J00 2*6*2 

6JB00 374 

IriOO 1741* 
2300 £00 

2JS0 508 
3400 290 

1,100 379 

MOO 509 
2300 413 

MOO 402 


ate ass 

7.000 138<2 

77 163 

ns tea 

6300 BT*2 
AOOO 438 
905 «M>a 
302 308 

730 306 

892 893 

1X00 223 

1.100 524 
018 2BO 

1.400 5T4 

IBB 423 
3JC0 843 
418 1B6>i 
400 004 

1 fOO 684 

745 420 

723 30fl 
413 360 

1.600 160 
438 140 

940 134*2 
927 93B*2 
014 641 

8.100 XO*x 

1300 534 

107 351 

(UNO «90>2 
<000 441 

1.700 809 

2.700 184 

1300 808 

476 
3LOOO 724 
586 348 

WOO 262*3 

1.100 176 

1 JB 00 280'. 

363 166 

12 339 

1fl» *07 
2300 490 

68 683 

MOO 649 
IK 538 
1X00 171 

1X00 847 

317 763 

1X00 408 

2.100 338 

2X00 541 

7X00 148 

570 67D 


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Montom (Wm) 

taruLctferirt 

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Mention Boot. 
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UMMHaiMatB 
WdOwt _ 
W»tx»Bf3Gft 


137*2 -4 

1T4 -t 

448 -a 

183 -8 

TOO -6 

X2h -V Z 

005 -9 

126 -4 

200 -2 

437 -0 

421 -6 

837 -9 

ate -ta 

088 -12 

210 -6 

029 -13 

912 -1 

019 -18 

104 -4 

457 -41 

277 -10 

802 -6 

840 -7 

229 -6 

363 -a 

507 -0 

488 -7 

830 -15 

a* -a 

488 

17*1 

410 

234 -10 

3044* -10 

1238 

017 4 

841 -13 

340 -13 

119 -3 

17S -2 

-IS 
700 -10*i 

■a 

290 -a 

473 -10 

140* -lie 

804 -4 

382 -6 


267 -14 

<0 

-6 

208% -e 

142 -01* 

-8 

147 -0 

271 -4 

473 -13 

1025 -1 

222 -0 

a. s 

1003 - 40 
322 -» 

-r 


Stock index futures came 
under heavy pressure, 
responding to selling by US 
Investment banks. 

After opening at 3,015 and 
moving ahead to 3.024 in quiet 
trading, the June contract on 
the FT-SE 100 fettered as one 
of the big UK investment 
houses sold 1,000 contracts 


into the market The big hit 
came around midday when 
one of the writers of 
over-the-counter tailored 
options soW the market 
aggressively. The future 
plunged through the 
3,000-mark, hitting the session 
low of 2,932 before dosing 
at 2^40. 


■ FT-SE 100 INDEX HfTURBS CUFF^ £25 par (ul tndsx pot* 



Opra 

Sett pries 

Change 

Mgh 

Low 

BSL VOi 

Open Int 

Jun 

30154) 

29804) 

-07.0 

30244) 

29324) 

20189 

50090 

Sep 

3036-0 

2953.0 

485 

30354) 

28464) 

674 

7470 

Dec 


29844) 

-074) 



0 

251 


■ FT-SE <OP 280 mPEX RfTUHe8 ffJFFE) CIO par ftJ Indax point 

JUi 35BQJ3 3S43X -54X 35900 3S4O0 296 4042 

ami -yw f| n v*a n S6JQ 3660.0 aSrtnO 25Q (C8 

■ FT-SE IflO 280 84DEX FUTURES {CTajQ CIO py 90 hxlax poW 

Jki 3fi433 771 

M CPM Marac (gum n lor pn<Uui Oqi. 7 Eoct volume mown. 

■ FT-SE 100 atDEX OPTION QJFFQ [-2963) CIO por Ml bxM poW 

2800 9860 2000 2S0O 3000 3060 3100 3180 

CPCPCPCPCPCPCPCP 

Jm m 11 m zih rsh ssh tr Bfh n 12 P* n 2 mh 3 2zo*z 

31 174 27^2 «ri2 41 18312 57 15 79 M 140 ri 179 IS Z& 

4UQ 202 46 183*2 5812 131 7TP* 100*2 97 75 123*2 53>2 153b 37>z 190 24 229b 

Sap 205b S7bf7lb 70b 1«b 90 1«5 110 S 136b 70b 165b 54 !00 38b 237b 

Sect 243b 32b ’ Wb 123 134 IWb « 2 25 

QA 0X50 PUN 11X80 

■ BIBO STYtC FT-SE 100 WPBt OPTION {UFFS ElO par ftX Index point 

2775 2B25 2S75 9420 9075 3028 3075 3125 

Jm 114b 7 Wb1«b «b 27b «b 44b 35b 70b 20b 103b 11 114b Sb 168b 
JM 153b 32mb48basb©b0«b22b«b 121 29 158b 73b 1Mb 


JM 153b 32 719b48b OBb 65b S«b 92b 43b 121 29 150b T71; 

Dug 171 52b 112b 86 53 134 tfi, 

Sap 192 Of mb 104 IS 154 48 

Darf 229 94 1M 130 117 17Kb 781; 

OSt 753 Pi*> 2JU2 * DaMjinB Wat oloa. Piartnw Nmwi ta Me8 on aakaM prtcev 
t Lons Mai oaky atnft*. 

■ EURO STYLE FT-SE WD 260 INDEX OPTION |DMUQ 210 par (id index point 


30b 200b 
48 217b 
78b 234b 


12 136 5 IBS 2 236 
1 0 Mi 0 Mkpont print and wUbn am Mon N 4JQgo. 


4100 4180 4200 


FT-SE-A INDICES - LEADERS 8, LAGGARDS 


NnoMort 1 X 00 5*8 -19 

iMcSam IK 538 -4 

Uldbrotot 1X00 171 -1 

land SscurUnrt 1X00 847 -8 

Upotta 317 763 *1 

LagdCGmnrr 1 X 00 400 -S3 

UoydtAbttv 2.100 350 -3 

Uoyrta Bar*T 2X00 541 -6 

LASUO 7X00 148 -C 

London BriX > 578 670 -3 

B*ad m WNg »*a» tar a wtotm N mte mam* t 
dmMMvmnRMMteliiNaiaFFi 


WMhVMtr 
W wwWrir 
MMuaadt 
V**ns*dgo.t 
WON Conooi 


YoiMNaBecL 
1 »/ n - _ , 
rononm wnv 

Zenecat 


Pareartaga chongao dhco Oaoambor 31 1933 tx 

OtBaNnBgp SAW + 8 X 8 FFCH8259«i BN- 

OwrtaN -i: i:»*X5 await Santo* 

G^kMNg.WHcNa StUOamlCUR. 

Pdrikg. Po*r A Pdq +4JB MNCNe 

FFSESMlGtoKlr*— +3.48 n-5£U028O 

BOacOwUl +1X5 BMdo 

Endaartag + 1 X 1 BUI** 8 CBaftacfcfl . 

IfanIMo +1X8 Santo* 

(AhNgoM +1X1 Itotaa 

FT-SEMCe +OM tooNMNIMi 

Kadi +020 Food itoNctarra — 

Irian & HuNN +0L04 MNoM 

OhaaNal tap* -2JB FT-ffiA 78 Stare 

Gm HnNctn* -2X3 fT4H 360 

BKtafcSBoEKp -5.75 BKNVINHNl 

Dktrbtoa -04 FT-S 1 CQ 

rMfesANynri -4X2 rmw 


d on Friday May 27 1904 
. -8.17 QaattarOadr-J^ 

. -5X3 flwmwww I 

. -5X8 HanM40n«( — 

-6X9 PSrioV : 

.-628 FTMHwHB^ 

. -8X2 ftttOj 

. - 6 X 2 UardMrl Sarto 

--7J8 KwaowSa N 

.-8.75 180* 

. -472 Wtor 

, - 8 X 8 UNtoHoca — 

-VU« flnaaNh — 

- 11 X 1 toa OMtorian 

-12S7 tana — — 

-522 Bato 

-1128 Tfltoxo 


I FT - SE Actuaries Share Indices 






The UK Series | 

DWt 

Tar 

DN. 

fits. 


im 

— Skn GtopMoo — 

Mr 27 1*09% HV2B NW 25 Mr 2* 

■00 

)W 

»ttf% 

nflo yti Wont 

Mgfe Urn 

N* t am 


FT-SE 100 

FT-SE Ud 2SB 

FT-9E Hd 238 « hit TnBtt 

FME-4 350 

R-4EMCK 

FT-SE StolCn to kri Troto 

FT-SE-A AU.-SH4BE 


395BX -IX 30I&7 30207 3088.1 28407 4.15 Etf 17X0 4079 1103X4 SSI 

35723 -TX 3B1&4 3628.4 3601.4 316&4 340 670 21X5 40X6 131220' 412BX 

3582.1 'IX 3B2S4 38363 2J00.7 31815 3X0 9.14 1958 41X0 1311X6 4I10J 

15955 -IX 15315 15320 15855 14167 8X6 868 18X3 19X7 1146X4 17713 

168182 -OX 189101 190270 10(5X6 161606 25S <23 2907 1916 F44S75 2084X0 

168224 -05 iesm 1816X3 180159 182833 3.10 4X7 26XS 1956 143223 300K3Z 

1500X6 -IX 1S4X4 1629X2 1557X2 1401X2 3X1 948 18SS 1M 116250 T70t.11 


■ FT-SE Actuaries All-Share 

osr* 

Hv 27 CD0BX Uap SB May 25 Ijej4 


Ymt Dfc. Em K MM. T« 
aw jim yM i00o yu HOMO 


10 RUBIN. EXnuempB) 

12 BAacOn todustrtaW 

15 09 MtgntedCg 

16 M ftptoraMflo X Prodpi) 

20 rat MA*JBUnW084262) 

21 BufkBng ft CcmruqloaQI) 

22 BuUno IMN 8 ItodatOT 

23 CtentofcfTO 

24 DhBriWI WoflrtririlQ 

25 Baton* A Bad EqubfM) 

26 Eb0lne«ta0(71) 

27 EagtnwNa. veofctop2) 
a Prwtno, PBfW & PKMZ7) 

29 TtoHn X AppadTO 

30 CONSUMER EDW»p5) 

31 &amrie*17) 

32 SpIrfU, WM9 & Odanfm 

33 Food H a n d actowCT 

34 HoiMlBU 60001(19 
38 Hnm Cara(20i 

37 PlwncaNkahOII 
36 Tobaccoffl 

40 rametspa* 

41 CNMnanpl) 

42 Lriure 8 HoNN(2» 

43 MedNP^ 

44 WUBn, Foodt17) 

45 Aetoflora G«rai{4V 

46 Support 

49 TnreportCIQ 

51 Othg Stteas a Butoaaflfl} 

60 urunesOT 
82 BedMtTtth 
64 an DNHwdona 
68 TetooranrtcaftiBW 

68 totoflg 

66 uoN-Fawcmsrao 

70 FWANOAIXO^ 

71 Batons 

73 MtonerilD 

74 UN tonraiccfS 

75 MrnftaK BantoB 
77 09*r FtandN(34l 

79 PWtolfOai 

60 gwanran mungpiq 

69 FT-NEA AU.-6MBQB6W 


2604X0 -IX 2043X6 2044X3 2707X2 2196X0 
3785.13 -05 3803X3 37WX9 3806X8 306^30 
254553 -17 2500.61 2601X7 2650X2 211650 
1929X1 -1-0 1947X3 1970X4 2007X7 1922,70 
107RO 'IX 2007.12 201173 2046X1 I7S8L50 
1221X9 -IX 1299X8 124977 1272X6 1*150 
1900X2 -2X 104020 193073 1078X0 1683X0 
2436X1 -07 246222 2471.75 246946 2100X0 
1964.64 -IX 2021X2 2025.78 2072.12 1S44X0 
202943 -2 A 2076X8 206053 210270 1955X0 
182915 -1.1 184474 1848X4 187989 148970 
221778 -OX 223901 224945 228964 1734X0 
271025 -IX 274973 Z74919 2802X7 231270 
172971 -IX 174930 174982 1770X2 166930 

2*931 -OX 283150 2629X6 2683X8 26BX0~ 
2158X0 -417 2171X6 2106X1 221978 1036X0 
290906 -OX 2020X7 2086X7 2954X9 268460 
2219X8 -IX 224250 2241X9 2270X9 222930 
2471X8 -OX 248078 2514.79 2657X4 220140 
1066X9 -OX 1079.17 1601X7 1707X9 1880X0 
266913 -OX 2601.16 2701X2 2732.17 3101JO 
343953 -2X 3523.42 3531X1 3632X7 3601X0 


-IX 195912 
-05 264943 
-OS 2096X8 
-OX 2668X6 
-2X 169925 
-2X 1693X0 
-OX 1600X0 
-IX 2902X2 
+a< 1^32.18 

-ZB 223962 
-IX 2(52X7 
-52 166945 
-23 107953 
-2.7 172917 

-IX 1652X2 

-1.7 211960 
-IX 270962 
-2.4 121940 
-12 2Z9B24 

-9» 287754 
-94 1823X5 
-1.4 156903 

-IX 276351 
-IX 1524X4 


1053X1 2001X2 178980 
7849X3 286939 2537X0 
2002X4 216059 174930 
2S46XS 3045X8 2313.40 
159954 1637X1 196920 
189955 1735X6 1474X0 
1604X0 1643.15 150950 
2310X9 2550X7 208020 
1107X9 11B282 1282X0 
2247.70 227981 2116X0 
2143X5 2167X5 1743X0 
187904 1882X4 1917.10 
1088X7 2023X0 1879.40 
1754X3 1786X3 1705X0 
1054X2 1667X0 19ZBX6 


3X7 <48 27X7 37X0 1084X0 273844 
143 5X2 24X3 4358 103996 41 0759 
3X2 <65 2970 4943 103991 2861X0 
148 1X9 80X0f 15X2 110184 200843 
3X0 <50 2778 24X7 83223 223240 
3X6 8X4 3296 15.19 947.19 1589.10 
178 3X6 33X8 2979 88523 2183X2 
3X0 3X6 3253 2938 106170 255228 
4X4 <66 264C 3945 907X0 2231X7 
3X3 930 1910 12X0 96976 228158 
2 X6 4X4 3947 2911 103)52 Ml1.tr 
472 2X9 6058 3242 106965 251971 
3X6 550 22X8 2945 10S3JO 3048X1 
4X6 SJH 2121 26X5 96917 30*4X8 

449 7X1 1472 4448 88379 384978 
4X7 7X3 19X0 19X3 04989 *4 BUZ 
278 An 17.16 41.70 6698) W5B 
<20 909 1443 4275 823X4 280014 
3X5 751 1943 4974 08974 28B1M 
232 550 2050 19X0 95921 100913 
478 822 14X0 47.15 83520 384753 
913 990 11X310235 705X1 471MB 
114 8X3 1996 1940 SB1X7 2M7.7? 
3X0 5X2 1988 34X5 07150 331933 

150 4X9 2932 1942 101159 218901 

2.19 911 22X7 3425 10190) 3S4911 

4X9 9X7 12X3 H72 011X8 WMJO 

3X3 651 19X8 Tf.H 87254 1010X7 

ZS5 SJ7 20X9 0X9 95174 tSBM3 

974 4X6 2351 1914 07182 2905X0 

447 129 BOW 8X1 101320 13WJ0 

470 8X5 1448 1453 BV95S 2762XS 

4X3 11X5 1949 1985 85394 20(912 

0X6 t 3 5343 82278 230977 

<29 7X3 19X8 0X9 79028 24*42 

9681941 7X9 348 80047 212930 

101 658 19L31 1925 1131X0 187930 

<33 953 13X5 4154 8)344 273718 

<* 6X9 1957 SBX7 790.10 8HUS 

6441250 915 27X4 78848 UBUI 

968 930 14X7 8938 83918 3101X7 

3X4 114) 1917 2326 B2963 37SUI 

172 962 1914 2918 95452 227935 

3X0 <* 6953 1MB 66952 1866X6 

Z24 1JB 63J0 26X4 91257 SMCIH 

191 648 199 1848 118250 


2781X5 282108 
1S2962 1557X2 


4ffi (47473 
«2 1058 
2/2 13BBXI 


1375 243988 
272 376980 
KM 2M908 
WA 778440 

2/2 187953 
K 1221X8 
2471 1008X2 
27N 220914 
2/2 1804X4 
4/2 1ML43 
272 1882X7 
272 212922 
1873 2MI.19 
472 132971 

2471 2M831 
1971 215928 
247) 3*7953 

1071 2H6JB 
1872 2471X9 
1971 1W8X9 
1971 288952 

in 343983 
1971 16*444 
272 M0888 
ITS 2H79B3 
"art 2849X9 
M71 1511X4 
471 1M928 
2/2 MBS 
an 08448 

1072 113982 
2/2 Z176X5 
2/2 2884X8 
771 188918 
2/1 18Z1J2 
3 « 1928XB 


4 12 2979*8 
472 2B2S.12 
2471 H81X1 
1071 2I698B 
272 2804X0 
472 181937 
472 184962 


10203 2/2/94 

416 U 372794 
««3 1071764 
17793 2®W 

2O04S 4/2X4 

208972 472794 

110U1 27279* 


3173 673944 1373S4 
2272 4M7S 27279* 
30/3 289150 100/04 
3173 394410 841780 

2 VS 2232X8 2/2/9* 
2778 2(2E6B 1877/87 


270 2331X7 2®B4 
30/3 aa 359 4/2/94 

471 2011.17 272794 
471 251971 272794 

471 3045X1 103/04 
2775 238900 2/10/87 

270 3080X8 22712782 
276 240482 1971794 
310 3457X0 1175732 
27/5 280084 1071A4 
27/6 280414 187394 
276 WDM 20967 
2074 419990 1471/92 
276 473982 29/1303 

2775 220757 1071704 
27/5 331931 2/2704 
m 236 BOS 17/2/94 
256 334911 17(2/94 
K/4 723850 2871/03 
2775 1834X1 2871*193 
276 188943 2/2794 
276 280996 80794 

21M 246930 167767 
96 OKS 2/394 
06 281912 20704 
276 237920 1671266 
276 MBUO 2071263 
AS 212979 31264 

276 187930 2/264 
276 2737,13 40704 
46 3001X8 4094 

276 182450 257)368 
Z7A 2821X7 1*104 
226 378149 3264 
276 227939 4064 

27/5 2US/W 5669 
276 310451 3264 


(3794 217166 
13713 ZVU8B 
8845 147168 
1362.75 31/1262 
136170 61/1262 
61X2 13712774 


980X0 19286 
10B98B3V1265 
962X0 20066 
85030 28/7/88 

66910 14/166 
98X6 9662 
B4X0 01062 
■I960 14717M 
00488 21/168 
M9B0 23668 
8 BUB IQn 1707 
M90B 14/166 
87130 14/166 
060X0 24660 

9I7XD 14/166 
90200 147166 
067.80 K7U86 
>4910 14/166 
027,10 21/166 
8I2XI 2W08 
053L7O 137166 
882X0 07168 


276 310451 3264 

2775 178411 2064 


802X0 3/KWJ 
96550 7/161 
89450 *1266 
802X0 3/1068 
984X0 17560 


97250 23/160 
9BO80 2371700 
870X6 2S66Z 
887X0 23/1706 
982X0 27/1788 
85980 1/1060 
71940 18662 
07750 147178B 
8152 1371374 


18.10 Htfifthy low/ttoy 

apis "arair 2srax 

35702 9621.7 35804 

1B043 -• • 18898 150QX 


P nwloua Chanpo 

' 11775 -233 


■ Hourly movements ^ mo 12x0 -.ttugo .-kjo. t ibjo M .10 toevday LonMay 

— ■ - — — ■ ■ - — ~TI - 0,04 90SA.B 3013.7 29883 - '8074X, 28703 .28999' "ato97 29895 

FM6100 **** 3618.1 36X7 38011 368QX 35711' 357U2 9821.7 35394 

EtSaS? 0 S 7fiaU5 «*» «tOS' 18092 . 1600 ■ «898 15090 

KnanW-saiOOTNtoOsatonUiwsSrien* _ ‘ ‘ ^ ^ 

■. FT-SE Actuaries 380 Iwtafrjr t1J 0 mo isxo xxo iftflo mo ao— . .Pn* 4 ou« ammo 

1 SEE , „ 7 CC «73jT 1171X 1165X 118U 11648 1181X 11641 1177^ -333, 

Bk^acnaoen liras ii»5 itras bssax moa 28497 atari 264QX. 26610 -22.1 

ntoreaoeubcia aooix 2«a« areas l72W i7ii.7 rroos -1*77.2 .mv 17295 -<ta 

SS JSS SSS ■ rntl 1 ,™ s, “ 4 - 

Brea flNON data tolua CnXW aaotfon or grajp !■*■ m fea jaaflBgga 

gaUMfcaaOBB datm vakm fc- t^T ai/127M 1411W MMor 2071260100000 UK QSs Indca 1 ^ ■ 31/12775 JftlOO 

MAUIkugUw 31/12/02 100900 FT-SE JKjfjS oSS Hov**vn*+ 1074/38 10O00 IndnKWcatl . 30/082 IOOlOO 

fT-SE&toOCaCL 31712792 158178 FT-^ASW S1/12«3 100000 FT-S&A«-5hBK ' 1074/82 100X0 Oabaradloato * ' . - 81/12777 100X0 

MkAio 31/12/32 1581 79 FT SE 0 0 1000X0 » OlhW 31/12*5 1000X0 

T7-8EMW250 31/12/8S1412X0 Boctrlgly ^^^ tn nrimatocfcBgJntnaditoFr^ Aflua aaU Pn ai n ^.atoaiafr.ae3B*acaptotoi*BCoaFP«dcy lha 

N *to > rj 71iaiyMCBnNtoyt8aere‘B^" ri o*9«atorn*nw, . • 


31/12/83 1000.00 FT-S&A«-6haf0 

SS SS 5,^1000^ »<X~ _ 


Market 


hits Rees 

It was a rollercoaster ride In 
the regional electricity compa- 
nies (Rees) yesterday with a 
strong performance fry the 
shares finally succumbing to 
the overall weakness of the 
market Sooth Western was a 
strong feature in early trading, 
as it announced that it was to 
seek permission from share- 
holders to buy back up to 10 
per cent of the Issued share 
capital. Hie shares moved for- 
ward ' on the news and led a 
sector-wide rise, underpinned 
by Investor enthusiasm for 
yield plays and recent buy 
recommendations from several 
brokers. 

However, the strong down- 
ward momentum in the mar- 
ket, fuelled by the sliding gilts 
market, sapped tire undercur- 
rent of support and the shares 
gave way. South Western man- 
aged to end the session 
unchanged at 609p, while Lon- 
don slipped 3 to 570p, Eastern 6 
to 604p and Manweb 6 to 700p. 
Analysts said that they expec- 
ted a further halfdozen of the 
highly cash-positive Rees to 
initiate share buy-back 
schemes. Last month. Eastern 
completed the first buy-back, 
purchasing 10 per cent if its 
share capital. 

Granada weak 

Despite more positive com- 
ments from some market 
sources, Granada suffered 
another weak session as bear- 
ish sentiment prevailed. The 
shares retreated 6ft to 490ft p, 
making a fell over the past two 
weeks of 10 per cent 

Mr Alastair Smellie at Leh- 
man Brothers expressed con- 
cern that the group's television 
rental division was the source 
of around 35 per cent of profits. 
“This business is fully mature 
and ex-growth. Granada will 
have to make further acquisi- 
tions in order to main tain prof- 
its which carries a lot of risk in 
the shares. I will be happier 
when they are down to below 
450p." 

But Mr Jason Holden at Nat- 
West Securities took a more 
positive view. “The recent 
underperformance in the 


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NEW HIGHS AND 
LOWS FOR 1994 

XEWMQH&tlN- 

Q9X9 CQ BAMCB (N Mta Fa*. BmuM Tri. 
* 8*0- Trita OXCnWC A ELECT BOUT M 
CML M«n». FtNau, VWtotori*. Ttohnse. 
eKBNBEflMO (Q CtmOnga EXTRACTIVE BOS 
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B910RATKM 4 PROO HEiCo Uuun 
fringv- MTAUW, FOOD (1) Otogga. 
RCTA9KS, OflCMLtl) Ausrit fterit 
TTUHSPOWT fO 8 «OtoWI 9 AMOOCMtS CO. 
NMUMlBm. 

□9TB SB} OTHER R&9 ritTBRSST 00 
BAMCS (q ANi AOOOy NriL, Bri* SQoOand. 
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BfUmSVCB (I) Qrsmta KBLOriM 4 
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Ty+cn. tring 44 A MV. Pat rin noo. vvtono 
BtoOril. VAnpw (Q, BUM luns 4 HCHT9 
ftg DtSmBOTONS n D*mt%xn Vanon. 
FamN Beet. Hrittata Inetoata WSto. 
DtoCUtRsDOOUm enrita. Hriwoo. Hriricn 
BUpc Bd. Hrint*ont A OortaM. Tcatoni, 
Ttotari (M*c Prtw Vttlri*. SLSCTRNC 4 
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Mrii (ta IKMJH CAM (6 Amman ML. 
CMUCto. IX* SrinUto. Mounout 

00003 (6 riyto, Uonhaort.Hriyon Stodright. 
MBURANCE (7) Mgatririn. Comwdri Uhion. 
Ffcnbuy Unttowrttfcig. GOE. (toyri. Sun Atari*, 
wn* CoflOta BWESTMENr TRUSTS DM) 
NMSTMDff OOMPMSEft INLBSURE 4 
HOTELS W Oraup* Ota Oritol IffE 
ASStffiANCE (7) MEOM K SeotSrii TV. Ukl 
Nrita HSKHAMT BANKS n 09 
EXPUMlAnoN 4 PROO « AnMic. OTHER 
HNAMCIAL IN Cntota JrinaoA Fiy , M 4 Q, 
PtotaM FW. Smith fto« Cowl Trto. OTHW 
BONN 4 BU 8 NS D) Anglo U&L, Bitt 
BfejocNtock. PWATWACEUTlCALa (Q Cetacfv, 
Cbkooctota PRT)t9 MMR 4 mCKO M 
e«HNr. Btorita 7 m» Piu Oondritto, 

pnopsnvm RCSWURS, 
FOOD (« Apptabr Wntta icritaL Kto 

8 BW. anopta iwrAitxna osctmlou 

SUPPORT 8 BW 8 n mBCOIWUMCAIlONB 
BMrit TririJQm. Soarty StorCW. TOCI1X8 

4 APPARSL (6 COON vi|«ta Ftariieut. 
&MmO04 SMar. TOBACCO n BAT. Do 
12*00 19 200S69 RotoitoW. TRANSPORT (F) 
BAA, BfftWt Ataoy*. Do BNpe Ctw, NFC, P 4 O 

Pit. UM. Ctoto*. WATH1 P) BtotoL Eta 
Sirray. VMNtL AMERKAW (Q CANADIANS (30- 

ahares ignores the value and 
potential of BSkyB, the cyclical 
recovery in motorway services, 
margin improvement in con- 
tract catering, retail growth in 
the rental business and the 
obvious synergy benefits of the 
LWT integration.” 

Portals tumbles 
News that De La Rue and 
Portals had called off merger 
talks sent shares in the two 
groups moving in opposite 
directions. Bank note printer 
De La Rue, which had initiated 
the discussions, jumped 14 to 
843p, while paper supplier Por- 
tals slumped 112 to 653p. Hie 
dramatic share price move- 
ments followed De La Rue's 
announcement that it did not 
intend to bid without the back- 
ing of the Portals board. 

De La Rue’s final results on 
Tuesday are expected to dis- 


close an increase in profits 
from £l04.7m to a market 
range of £115m to £I30m. 

The sale by Thorn EMI of a 
large part of its security busi- 
ness encouraged hopes in the 
market that the group had 
taken a further step towards 
its eventual demerger- The 
shares held steady in the face 
of the faltering market to close 
just a penny off at lQ25p. Spec- 
ulation that Thom may split 
its two core businesses - music 
and rental - into two sepa- 
rately quoted companies, long- 
rumoured in the market, were 
given extra credence this week 
by remarks from the group’s 
management at the results 
meeting. 

Strauss Turnbull down- 
graded profit expectations and 
turned seller of Dalgety, citing 
increased competition in the 
pet food market, and price 
increases in the potato market 
which are likely to impact on 
the company’s crisp snack 
business. The shares fell 10 to 
423p. 

The well-flagged sale of Bak- 
ers Oven by Associated British 
Foods caused some disconcer- 
tion over the price - £18-9m 
against best market expecta- 
tions of 230m - and the shares 
fell 12 to 543p. Purchaser 
Greggs rose 12 to 805p on the 
deal and an upbeat trading 
statement 

Discount supermarket group 
Shoprite endured another tor- 
rid session as turnover bit lm 
and the shares weakened 10 to 
SOp. A profits warning on 
Thursday sent the shares 
crashing from 144p. 

There was some disappoint- 
ment over the price struck by 
Boots for its Farleys baby food 
business. The shares slid 15 to 
509p. 

Pharmaceuticals group 
Glaxo, which initially gained 
10 in early trading, finished 5 
down at 534p as the downward 
pressure on the market took its 
toll. Comments from the chief 
executive which came after the 
the market close denied the 
group was in acquisition 
talks, following strong specula- 
tion that Glaxo was seeking to 
buy or form an alliance with 
the US drug company McKes- 
son. 

Shares in chemicals group 
Courtaulds bucked the poor 
market tread to close 3 
ahead at 5l4p, after trade of 
1.4m, on further reflection of 
the board's report of a 




FT-SE 100 bxtex 

Closing Index (or May 27 29S6.4 

Change over week -160.9 

May 26 3019.7 

May 25 ,...3020.7 

May 24 3089.1 

May 23 3108.4 

High* - ....3129.9 

Low* 2959.5 

'lntra-day high and tow for week 


■ CHIEF PRICE CHANGES 
YE S T E R D AY 

London (Pence) 

Rises 

Bluebird Toys 204 + 7 

Castings 260 + 12 

Cranswiek 146 + 11 

DCS 85+4 

Do La Rue 843 f 14 

BliOtt (B) 83+4 

Eurotunnel llts 359 + 11 

Nbrish 178 + 8 

Severfietd-Reeve 64+4 

FaUa 

Appleby Westward 133 - 15 

Assoc Bnt Foods 543 - 12 

Boots 509 - 15 

Cables. Wire 438 - 14 

Cook (Wm) 262 - 23 

Portals 653 - 112 

Securitised Endw 72-6 

Sboprito 00-10 

Tomkins 222 -9 

Wlckes 94-6 


positive trading outlook. 

The group reported lacklus- 
tre figures on Wednesday but 
it was the bullish statement 
and positive analysts meeting 
that led several brokers to 
upgrade profit expectations. 
Hoore Govett, which had the 
stock on its hold list turned an 
aggressive buyer of the shares. 

However, Kleinwort Benson 
remain negative on the stock 
and said “ ... we continue to 
recommend a reduction in 
weightings'*. 

Legal & General tumbled 23 
to 4Q8p, as dealers reflected on 
the balance sheet effect on 
insurers of the fells in both the 
bond and equity markets. Vol- 
ume at the close was 1.9m. 
However, Prudential Corpora- 
tion. sold heavily in recent ses- 
sions. held up relatively well to 
close unchanged at 2S?p, after 
trade of 42m. 

Bargain hunters were evi- 
dent around Channel tunnel 
operator Eurotunnel which 
this week launched a much- 
anticipated £8i6m rights Issue, 
one of the largest in UK corpo- 
rate history. The shares gained 
11 to 359p in modest turnover. 

Shares in engineering group 
William Cook fell 23 to 262p 
after it reported disappointing 
second half figures. Pressure 
on margins was blamed for the 
setback. 

British Steel gave up 2 to 
I36ftp with NatWest Securities 
issuing a detailed negative 
note on the stock. 


Ttto ^IveitMimu is ic.mil ui coinjxluoec tvidi dir rvquurmrru* lit" Thr IntcnutmiuJ Swxfc EALhjnjy 
of die United Kingdom and tin- Republic oTIicfaml Unwed (ihr "‘Lomton Stock 8utaii|gO 1« tun im 
constitute su iaviuaon or otter tu any pwtm to subscribe Ibr oc purchase jtty duns. Subject, utter aha. tu 
approval by the Slureltolilertrt' die Company ji an EMroonhiury Grand Meeting to be hekl on 2ndijuw:. 
W+). and o> die tubieqiinn approval at' the High Court (o Schemes of Arraugeu aim proposal m rrbnoii lu 
George Wieseou l folding. pV and Associated Itaush Foods pk. application writ be made ro die London Suck 
Exchange for ajmsaon ro the CHHcol Lnc of the On la ary Sham oftleorpr Mfcton Hokhitp pit issued jud 
proposed to be ssued. It is expected that letiMg will become effective jiiJ that de.ilinp ui nidi shim will 
cciQimcnee on Va hopni. t7J4. 

George Weston Holdings pic 

(to be renamed Associated British Foods pic) 

/hmnpoMtcdeniln^biiTidm liMeiothl xml Hairs nndrftlif Ca«paiiirt.4rt I9J9 uqifi n^oInrJ mun/rt 

Introduction 
Sponsored by 

Lazard Brothers & Co., Limited 

Ordinary Share capital immediately following the Introduction 

Authorised Issued and fully pud 

^pO.OOO.UW in ordirtaiy shares of 5p each £ 22.4U2.W4 

George Weston Hokhngs pt b die holding company of a food nnttnfacmring and procosing and 
reading group. 

Copies of die Listing Particular! of George Weston I loldings pic will be available during uomiai 
business bouts on any weekday (Saturdays and public holidays excepted), from the date of' tliis notice 
up to and including 1 st August W4 (or such later date as fisting si aJi become effective and dealings in 
thr ordinary shares of George Weston Holdings pic shaQ eomnience) from: 

Georgri Wertoo Holdings pie Anutxum Gordon St Co. Umhvd traril Brotiun at Co- limited 
Wbuon Ceonr. Bo water House New Broad Staw House 21 MoorfidJs 

68 KmgUtsbrittge 35 New Uruati Street London EC2P 2HT 

London SWI X 7LR. London EC2M \NH 

Copies of the Listing Particulars are also available during normal business hours from the Company 
Announcements Office, die London Stock Exchai^c. London Stock LxchangcTowet; Capd Conn 
Enttance off lianhokMitcw lane, London EC2N 1HP. for collection only, from die date ofdiij nonce 
«p to and including 1st June. V»4. 

28di May 1994 

































































































































































































































































































































































































































































v' 



WORLD STOCK MARKETS 


AMERICA 


Dow steady ahead of holiday weekend 


Wall Street 

US stocks weathered a sharp 
downturn in the bond market 
yesterday morning as traders 
squared their positions 
of the three-day Memorial Day 
weekend, writes Frank 
McGurty in New York. 

By 1pm, the Dow Jones 
Industrial Average was 3.68 
lower at 3,748.78. while the 
more broadly based Standard 
& Poor’s 500 was (town 0.63 at 
456A3. In the secondary mar- 
kets, the American SE compos- 
ite edged 0.16 ahead to 439.78, 
and the Nasdaq composite was 
np 0.Q2 at 731.66. 

In view of an early sett-off in 
the Treasury debt market, 
stocks held up well Bonds 

EUROPE 


turned bearish after the Com- 
m«n* Department confounded 
economists with an upward 
revision <tf its estimate of first- 
quarter anormmtc growth to 3.0 
per cent Analysts hod wp»*. 
ted the government to trim its 
es ttiuaie of gross domestic 
product, from SLS per cent to 
2.4 per cent The surprise sent 
longer-dated bonds ftmthHng 

by % of a point and yield clim- 
bing to above 7.4 per nwt 
Share prices dipped at the 
opening, steadied and then 
approached their opening lev- 
els. Later in the Mr 

Alan Greenspan, the Fed chair- 
man, testified before Congress 
but bis remarks elicited no dis- 
cernible reaction by the mar- 
kets. He left open the possibil- 
ity of further Hght*»nirag of 


monetary policy during the 
summer. 

Many equity investors appar- 
ently decided to relax and get 
an early start on the weekend. 
Volume was very ti ght , with 
only 120m shares exchanged. 

Whan Wall Street gets back 
to business on Tuesday, how- 
ever, it feces a barrage of eco- 
nomic culminating with 
Friday's employment report 
Trading activity is likely to 
pick up pace as the week prog- 


A mostly dull session yester- 
day was highlighted by active 
trading ha Upjohn, the pharma- 
ceutical house considered ripe 
for takeover. The stock gave 
bade SLH'to $31% after Hoechst 
of Germany denied speculation 
that it was considering a 


merger or strategic alliance 
with the US group. Upjohn’s 
share price had jumped $3% in 
the previous session. 

McKesson, the largest US 
drug distributor, also provided 
some fireworks. Its share price 
jumped 11 per cent during the 
previous session, on specula- 
tion that a foreign buyer would 
emerge for its drugs-beneflt 
business. But when Glaxo 
denied interest to such a deal 
yesterday morning, trading in 
McKesson’s stock was 
suspended at 882 because of an 
order imbalance. 

Meanwhile, Philip Morris 
continued to suffer from its 
board's decision to take no 
action on a proposal to split 
the company's tobacco and 
food operations-. The stock 


shed a further $1% to $49% 
after dropping $3 on Thursday. 

Oil stocks were mixed, with 
Area gaining $1% to $105 and 
Mobil shedding $1% to $81% 
even although Oppenheimer 
lifted its estimate of t h e com- 
pany’s 1995 results because of a 
restructuring of Its chemical 
operations. 

Canada 

Toronto lost ground in moder- 
ate midday rfoalfwg n as profit* 
taking pulled back shares 
which had posted solid gains 
on Thursday. The TSB 300 
composite index fell 12L55 to 
4,318-16 to turnover of 29.52m 
shares. Consumer products lost 
ground as Cott Corp teQ C$1 to 
C$28%. 


Clouded horizons for 
upset German bourse 

Christopher Parkes on Frankfurt’s fall from grace 


Senior bourses suffer after revised US data 


Revised gdp data, and 
consumer sentiment indica- 
tions from the US had little 
impact on their domestic mar- 
ket, but were followed by sub- 
stantial foreign selling in 
senior European bourses, 
writes Our Markets Staff. 

PARIS dropped 2 per cent 
after substantial selling orders 
from the US, said Mr John For- 
dyce at Ferri International 
The CAC-4Q index fell 4L23 to 
2,050.67, down 49 per cent on 
the week, in turnover of 
FFMAba 

The story of the day, how- 
ever, was strictly European: 
Schneider, the electrical engi- 
neering group, dropped 
FFr23.30, or 5.6 per cent to 
FFr390 after its chairman, Mr 
Didler Pineau-Valencienne, 
was jailed by to Brussels fol- 
lowing a complaint by minor- 
ity shareholders to two of the 
group's Belgian subsidiaries. 

Mr Pineau-Valencienne is 
scheduled to appear before a 
judge on Wednesday. Mean- 
while, for the whole market, 
Mr Fordyce feared the absence 
of UK and US participation an 
Monday, after a fall of 300 
points in the CAC-40 since 
early in Febuary. “We could 
see small shareholders craning 
to as a flotilla of sellers, with 
no prop from abroad,” he said. 

FRANKFURT was hit by 
heavy selling of Dax futures 
and foreign selling of the cash 


ASIA PACIFIC 


1 FT-SE Ac- 

ruanes Share Indices 



May 27 

Haorljr eten^a 

Opaa 1030 

THE EUROPEAN SERIES 
1130 1230 1330 1430 15L00 (teas 

FT-SE Bmaacfc 100 
FT-SE Bnback 200 

1422.16 142227 
143SS6 1483.17 

142237 142055- 141330 
143*30 143133 142229 

140332 

141430 

140536 1404.19 
141384 141433 


M0 2B 

*« s item* 

«*# » 

W* 20 

FT-SE Ewbacfc 100 
FT-SE Bnbadc 200 

1411^46 

142637 

141 2St 143177 

143024 145390 

1446AZ 

140875 

149637 

147420 


Bw m nrnm no - MXU9; ao . I43UI laaatf: HB - lin JS 200 - MHU* 


market from a little after mid- 
day, said Mr Edgar Benischek, 
head of trading at Bank Julius 
Bar. 

ft dosed tiie official session 
with the Dax index 10.74 
higher at 2J.40 J9, down from a 
day's high of 2J5&26; it then 
shd further in the afternoon to 
an Ibis- indicated close of 
2J1240. 

Turnover eased from 
DMS.Sbn to DM7.3bn. Big 
stocks like Deutsche Bank, 
Daimler and Volkswagen took 
the brunt of the selling as 
proxies for the market, said Mr 
Benischek. Looking at the 6^ 
per cent fell on the week, he 
thought that the German 
bourse coaid be in a correction 
phase staffer to that experi- 
enced earlier tins year by the 
Swiss bourse - when, from 
peak to trough, bine chips fell 
by 19.5 per cent 

MILAN remained underpres- 
sure until a late technical 
rebound pulled shares off their 
worst levels as the Cpmit index 


tested support around the 720 
20VeL. The fotfey fn-rtahwl 10.26 
lower at 73069, for a 09 per 
cent fall over the week. 

A heavy flow of capital 
increases announced this week 
contributed to the unsettled 
mood of a market facing profit 
taking , particularly by foreign 
investors, in the wake of the 
post-election euphoria. Trading 
volume, however , was thin. 

wn, the Agnelli family hold- 
ing company, was the day's big 
loser, down 10,063 or 140 per 
cent to L6.5U, to response to 
its nTmnrtncpp r gpf gf plans to 
raise LSOObn in fresh funds. 
Analysts commented that 
Investors were unhappy that 
half the cash would be used to 
finance the switch of the Uni- 
cem cement group to Iffl from 
its sister 1FI holding company. 

BCI gave up L74 to IfrflSL 
adding to Thursday’s sharp fell 
to the wake of news that it 
planned to raise L2,OOObii. 

Fiat lost L66 to L6.6S5 to 
spite of hopes that the new 


government might be about to 
announce measures to jump- 
start the economy, including 
incentives for new car buyers. 

Mediobanca lost another 
T-3Q9 to i.i.yas amid expecta- 
tions that nff in fo n notice of an 
Inquiry into the merchant 
bank’s role as adviser on the 
restructuring of Ferrnzzi-Mont- 
edison was expected to be sent 
to bank directors within the 
n ext fe w days. 

ZURICH was heartened by 

Hafai in Hi part rig tha t the eCOU-. 

cany was gaining momentum, 
while inflation remained low 
and the SMI index rose 22.7 to 
2,71L9, for a 0.8 per cent fell on 
the week. 

Better than expected May 
inflation figures yesterday fol- 
lowed Thursday's announce- 
ment of L3 per cent growth 
in the first quarter of the 
year. 

Financials were firm: UBS 
bearers rose SFrlO to SFi-1,170, 
CS Holding put on SFr6 to 
SFr612 and Zurich Insurance 
was SFrlS higher at SFrL336. 

Nestfe continued its come- 
back, adding SFr22 to SFn.145 
while Roche certificates were 
SFr65 better at SFr6,610 ahead 
of Tuesday’s annual meeting . 

AMSTERDAM was under 
pressure from domestic bonds 
and the weak showing of Lon- 
don equities, ami the AEX did 
3.11 to 40L63, close to the psy- 
chologically Important 400 


Active buying takes Nikkei to 1994 high 


Tokyo 


Active buying by foreign inves- 
tors, investment trust funds 
and dealers pushed up share 
prices and the Nikkei index 
rose L4 per cent, dosing at the 
year's high, writes Endko Tern- 
zona in Tokyo. 

The 225 average rose 28L36 
to 20,777.16, surpassing the pre- 
vious high of 20,677.77 .to 
March. It moved to a narrow 
range to the morning, register- 
ing a low of 20510.10; but toy- 
ing by dealers to the afternoon 
session triggered activity by 
domestic institutions, and a 
peak of 20,82456. 

Volume rose to 530m shares 
against 399m. The Toplx index 
of all first section stocks 
jumped 19.78 to 1,670.76 while 
the Nikkei 300 rose 3.90 to 
305.75. Advances led declines 
by 832 to 197 with 147 
unchanged and, to London, the 
ISE/Nlkkei 50 index rose 5.46 to 
L378.07. 

In spite of the rise, few to the 
market expected tbft tod ex. to 
break the 21,000 level easily. 
Tractors said that large-lot sett- 
ing orders had been placed. _ 

Large capital steels and ship- 
builders were higher* Mitsubi- 


shi Heavy Industries, the most 
active issue of the day, rose 
Yll to Y748 and Nippon Steel 
gained 72 to Y372. 

Nippon Telegraph and Tele- 
phone gained 77,000 to 
7868,000. Other telecommuni- 
cation and multimedia linked 
stocks were also higher with 
Fujitsu up 740 to YUI90 and 
NBC gaming 720 to YU90. 

Profit-taking depressed East 
Japan Railway, which lost 
71,000 to Y508.000. 

Speculative favourites gave 
way to blue chips. Sumitomo 
Coal Mining fell Yll to 7884. 

to Osaka, the OSE average 
rose 213.71 to 22J88L19 in vol- 
ume of 2&8m shares. Capccm, 
a video game software maker, 
gained 7400 to 74,980 on 
reports that its pre-tax profits 
will rise 10 per cent for the 
curre nt year to March. 

Roundup 

Individual markets displayed 
strength to an otherwise quiet 


SHANGHAI B shares rose 5 
per cent an US renewal of most 
favoured nation status to 
nhtna The index rose R58 to 
75.55, for a 12.5 per cent 
advance over the week as for- 


eign 3wiii domestic buyers b uDt 
their portfolios. Rene wed con- 
fidence in the outlook began to 
emerge at the start of last 
week after a 40 per cent fan to 
the market since the start of 
the year. 

BANGKOK rose 2 per emit 
cm the day and 3.4 per cent 
over the week as buyers moved 
to to large market capitalisa- 
tion stocks. The SET index 
rose 2755 to L38&57 to turn- 
over of Bt8-5bn, down from 
Thur sday 's BUObn. 

TAIPEI was pulled lower by 
late profit-taking to industrials 
after Thursday’s rebound, and 
the weighted index fell 45.59 to 
5,806.77. or 1.7 per cent, over 
the week. Turnover rose to 
T$415ibn from T$85.78bn. 

MANILA opened strongly on 
foreign buying of blue chips 
but dipped at toe dose as prof- 
its were taken. The composite 
index fen 10.07 to 2307.00, L3 
per cent higher on the week. 

SYDNEY finned on a late 
spurt of bargain-h un ti n g which 
took the AH Ordinaries index 
up &8 to 2JXKL2, little changed 
cm the week, to turnover of 
207.3m shares. 

HONG KONG finished a 
mixed day slightly lower, 
sapped by prafittakmg on con- 


firmation of US renewal of Chi- 
na's MFN trade status and con- 
cerns ova - the lower domestic 
property market The Hang 
Seng index fen 1L58 to close at 
9,470.13, 1.7 per cent lower on 
the week. 

SEOUL was slightly higher 
as investors switched attention 
between a number of different 
sectors. The composite index 
added 3.10 to 953.86, little 
changed on the week. 

SINGAPORE was firm on 
late blue chip buying by insti- 
tutions which took toe Straits 
Times Industrials index 8.75 
higher to 2,323.95. little 
changed on the week, to vol- 
ume of 96.48m shares. 

KUALA LUMPUR finished 
the day's highs as investors 
a gain took q uick profi ts amid 
continued uncertainty over the 
market’s near-term direction. 
The composite index closed 
3D6 ahead at lPQOJl, almost 
unchanged an the week. 

BOMBAY ended with gains 
on buying by speculators and 
mutual funds which took the 
BSE-30 index 5L51 higher to 
3,788^1 in a session shortened 
to enable the BSE to prepare 
for toe launch of two new 
broad-based rupee and dollar- 
based indices. 


FT-ACTU ARIES WORLD INDICES 


JoWy eompfed by The finance Ttawi tat. 
NATIONAL AND 

HEOIONAL MARKETS — — 

Hguvs tn pra e n ttraaa o US Oofs 

show jxjmbar of Inea OoBar Change 

of wtock »ndtw % 

AustraSa (86J — 17S65 -03 

Austria (171 1 W.74 -1-0 

8«|glum(39g 17238 -06 

Canada poo). 

Denmark paj- 
FMand (23}._. 
fanes 9Q — 

Gemwiy (5SJ,_ 

HonoKofur | — 

tab(B0J 

JOpratflQB^ 


GokJnwv Sacha & Co. and NsAWaft SacuriHaa Uri. in c onjunction fan the hetitete o< Actuates and the Faoufty of Actuaries 


THURSDAY MAY 28 IBM 
Pound l*eat 

Storing Yen DM 
tndn tadre 


Local 
Qarancy 96 eftg 
Max an day 


WBtNE BP AV MAY 35 1984 — — — —DOLLAR *tO£X 

US pound i rrmi Yea r 

Mar Starling Van DM Currency 62 weak 62 weak ago 

Mm index Max Index Index Hfgh Low fcppnaj 


_18S.70 -OS 
>.8861 -0-2 
.isaso -04 
jm*r i-4 


rear*»E3} 2QOTB 03 

anwparaftq 348.71 US 

&a*i Atria 09) 260.06 -OB 

aewi m i47.n oa 

Nino* 

fW&MwdHT) 

Kingdom (2dS)_ 



V r-\ 


■ aw 151.78 0.0 

srr&*. Jepen (2B1) 25267 -0-1 

Wtetefa. US (11*4), .1 &M -02 

UK rite®— 171.79 -ai 

^.18260 & 1 - 
Mix PITS) - 173.10 -0-1 

UM Meei mn HwMMiie hr Me a#n 


176JXJ 

17044 

173.66 

190L2Z 

24031 

14067 

17267 

won 

38827 

18036 

8842 

15028 

467X6 

218080 

19002 

7030 

20022 

347.02 

281-59 

14082 

22079 

157.00 

18089 

18013 

18088 

21169 

10789 

107.22 

18285 

15180 

25082 

18035 

17180 

17272 

18270 


17271 

17218 

17043 

127.78 

24287 

147.07 

16885 

137.10 
38200 
18180 

8077 

18020 

45021 

2001.19 

10088 

3887- 

18048 

34054 

26007 

14488 

21081 

15487 

18984 

18295 

10254 

80784 

1B4.78 

104.10 
17024 
14887 

248.10 
18020 
18888 
15048 
17037 


11021 

11880 

11480 

8688 

10385 

o ft o ff 

11981 

9285 

26780 

12288 

5888 

10014 

30098 

140784 

13181 

4047 

13220 

228.13 

17270,, 

8084 

147.78 

10988 

mas 

12290 
11084 
18091 
11088 
11041 . 
12080 
10023 ■ 
16003 
111.18* 
11880 
11484 
120127: 


15048 

15087 

14880 

11188 

2fe21 

128.15 
147.13 
11240 
33288 
18080 

7581 
13018 
40013 
189212 
17088 
00:18 
17120 
' 29278 
22204 
125L54 
18180 
18424 
18075 

188.15 
14080 
16027 
14256 
14268 
15018 
12820 
21018 
-14288 
14088 
14788 
18828 


18043 
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level. The market hud 
2.7 per cent over the week. 

nhwn<«|\ StOCkS nrtntTTn ied tO 

recover after the weakness of 
the last two weeks. DSM 
picked up Fll to FI 135 whfle 
Akzo was 90 cents higher at 
FI 210.70. 

Nedlloyd gave up another 
F1L40 to FI 71.10 in response to 
this week’s lower than expec- 
ted first quarter results. 

ATHENS recovered another 
2 ft per cent, flia general 
rising 1902 to 855.43, but it was 
still SJ3 per cent lower on a 
week which saw a continuing 
liquidity crisis driving Inves- 
tors to high-yielding invest- 
ments to risk-free, bank-to- 
customer repurchase agree- 
ments (repos). 

ISTANBUL, in contrast, fell 
by 3JS5 per cant as investors 
fled Into treasury bills, the 
composite index aiding 599.72 
down at i m 

Written and edited by WUUsm 
wnrini ono Mfcnaoi Mcnpii 

SOUTH AFRICA 

Johannesburg was flat 
although some bargain hunt- 
ers lifted selected shares off 
morning lows. Industrials con- 
tinued to be depressed by the 
firm WnanriftT nmrf The over- 
all index ended 8 lower st 
5,882, industrials lost 28 to 
6,569 and golds fefi 7 to 1*885. 


M r Hans Tietmeyer. 
the Bundesbank 
president, pulled the 
rug on the German stock mar- 
ket last Monday, ft was the 
H-word that did it Speaking to 
Helsinki, while his domestic 
traders were enjoying the Pen- 
tecostal holiday, Mr Tietmeyer 
proclaimed that as far as cen- 
tral bank interest rates were 
concerned, toe “harlzau is now 
clear for some time”. 

Although some saw this as a 
roundabout way of saying that 
the Bundesbank could see no 
obstacles to the way of contin- 
ued discount rate cuts, a con- 
sensus rapidly emerged that 
Mr Tietmeyer meant that he 
could see no reason to put the 
bank’s short-term rates b wk in 
the salami slicer for a little 
while yet 

Although there was little 
pressure from sellers or buy- 
ers, Frankfurt’s Dax index of 
30 leading shares was left with 
nothing to stand an and slid 
rapidly downwards. Within the 
nest three days, helped along 
by darkling hinte of lurking 
inflation from Mr Helmut 
Jochimsen, a Bundesbank 
council member, the Dax lost 
around 120 points. Yesterday, 
an early upturn was not sus- 
tained atwI when toe fids-todl- 
cated Dax closed at 2.11280 to 
the post bourse it was down 
around 6 per cent an the week. 

An enduring recovery may 
take same time to emerge, and 
win once again depend on the 
development of interest rate 
prospects. The improved out- 
look for faringfcriaf prefits this 
year hag fang been torfmfad in 
most German stock prices. 
Meanwhile, according to a pes- 
simistic analysts' report from 
the Bayerische Veretosbank, 
the Dax Is more likely to dip 
further towards the 2JM0 mark 
within the next two months 
than shift up towards the key 
2300 level it strove and failed 
to attain m rises which, were 
sparked solely by the April and 
May discount rate cuts. 

There appear to be few rea- 
sons why the Bundesbank 
should consider farther 
short-term rate cuts for several 
months. Although the bank 
insists that its business is mon- 
etary - not economic - policy, 
the softly-softly decline to 


rates which began late to 1992 
has clearly helped economic 
recovery to recent months. The 
upswing is under way, as 
shown by strongly rising 
export demand and clear signs 
of improvements at home, ft 
appears to have enough 
momentum without the need 
for a further push from the 
Bundesbank, which in any 
case will want to avoid any 
risk of over-beating. 

After three cuts to short 
order, which have brought the 

Hwmfny 

OAX index* AOtuoitfrtmtaM 
2300 — * 33 4.25 



discount rate down to 4.5 per 
cent - the lowest level 
mid-1988 - toe bank needs to 
be careful to avoid giving the 
impression that the economy's 
troubles are over, and raising 
inflationary expectations in a 
workforce earning sharply 
reduced real incomes. Public 
spending has als^ still to be 
brought under control to a 
process likely to last far 
beyond the official end of 
recession. 

Although experience shows 
that no assumptions are «afe in 
regard to the Bundesbank's 
tactics, it appears Mr Tiet- 
meyer and his men have 
allowed themselves three to 
four months to which to come 
to grips with their most press- 
ing concern - money supply. 

The bank's key indicator for 
monetary policy, and its most 
trusted guide to inflationary 
potential, the M3 measure, has 
been running wild for four 
months. At the last count, M3 
was growing at 1&6 per cent 
annualised compared with toe 
bank’s top target of 6 per cent 
for this year. By - senior offi- 


cials' own admissions, it has 
also became opaque. 

The figure has been distorted 
by a hefty overhang from the 
last quarter of 1993. The impact 
of the much-discussed special 
factors (the unhappy side- 
effects of tax measures intro- 
duced by the government) has 
been considerable, but appar- 
ently impossible to define. And 
as was suggested this week, 
the persistently high borrow- 
ing demands of government 
and quasi-state institutions 
such as Telekom, the railways 
system and the Treuhand pri- 
vatisation agency, plus the pri- 
vate sector, may well prove to 
contain the seeds of future 
inflation. 

As the bank explained at the 
time, the most recent cut to 
the discount rate was intended 
to adjust the interest rates 
structure. The idea was to 
encourage investors rattled by 
uncertainty on rates to move 
funds currently parked to 
short-term deposits, which fall 
within the definition of M3, 
into longer-term instruments, 
which do not. Although this 
process of so-called monetary 
capital formation appeared to 
accelerate in April, several 
observers have been quick to 
claim that it is now too late for 
MS even to approach the cen- 
tral bank’s 4-6 per cent target 
range this year. 

They argue that if that turns 
out to be the case, the Bundes- 
bank will have lost the “gam- 
ble" it took by cutting rates 
three times this year while M3 
was clouded to so much uncer- 
tainty. That loss could cause 
serious damag e to the credibil- 
ity which the bank sees as its 
most valuable asset 

O n the other hand the 
bank would hardly 
have won praise if it 
had left rates unchanged, and 
there is a certain measure of 
Schadenfreude detectable to 
some of the attacks. But the 
feet that the hank shniiTri have 
lost sight arguably through no 
fault of Its own, of the true 

amount of liquidity or readily . 

available funds sloshing 
around to the system at such a 
delicate time suggests that the 
M3 formula at least requires 

timing 


LONDON EQUITIES 


LiFFE EQUITY OPTIONS 





Cite 


i ■ — 

Ptte 

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open 


M 

Oct 

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540 

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240 

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390 

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240 

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600 

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600 

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850 

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37 

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480 

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500 

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220 

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550 

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280 

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RISES AND FALLS 


OnFHd-y 

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Brftmh Find* 

2 

66 

5 

16 

316 

23 

Other Fbcad Internet 

0 

12 

3 

7 

50 

18 

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63 

63 

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299 

306 

400 

Genaraf Manufacturam 

72 

233 

359 

430 

1.107 

1.784 

Consumer Goods 

20 

63 

106 

122 

323 

510- 

Sarvioaa 

SS 

in 

286 

309 

BQ3 

1,452 

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2 

35 

9 

70 

110 

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71 

127 

178 

337 

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801 

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28 

289 

173 

127 

1,062 

1.181 

Others 

56 

42 

20 

185 

288 

145 

Total* 

388 1.070 

1.228 

1.812 

5,007 

6,449 

Dna faftMO on Dm canpanMi Mod on me London ten BeMcft. 




TRADITIONAL OPTIONS 






First Deeinps 

May 23 

Last 

Decimations 


Saptl 

Last Dealnga 

Jura 10 

For settlement 



Sept 12 


Ca«K BbabM Toy*, Owoca, RNno, Soutfwn SuafeMsa, ntaghur. 


LONDON RECENT ISSUES: EQUTTIES 


issue Amt 
price ptid 

P UP 

UKL 

cap 

Em) 

1884 

HI0i Low Steak 

Ckraa 

price 

P 

47- 

Nat 

dUr. 

Otv. On 
car. yjd 

WE 

net 

- 

FP. 

IDS 

112 

110 CVS 

110 


_ 

_ 

_ 

_ 

- 

FJP. 

1U 

148 

126 Capttti 

145 


LKL3 

U 

26 

242 

6250 

FJP. 

1754 

249 

239 DCC 

238 

-1 

LQ34N 

ao 

26 

124 

110 

F J>. 

41.7 

120 

110 ORS Data & Rea 

117 

-3 

LUZjQ 

1.1 

3J0 

27S 

- 

FS>. 

77.3 

S3 

90 Remlng Man 

92 

♦1 

_ 




— 

fP. 

840 

50 

42 DoWwrarts 

50 


_ 

* 

_ 


160 

FP. 

5&6 

171 

ISO SRTBua 

184 

-2 

RN3-8 

3S 

zs 

12.7 

120 

FP. 

40.7 

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122 Go-Ahead 

122 


MM) 

IS 

4.1 

186 

- 

FP. 

- 

37k 

36 Govntt Gtt 3 Wt 

38 


a. 


m 


IBS 

FP. 

423 

196 

ISO Hanteqa 

185 


W4.7 

Z2 

a 2 

176 

105 

FP. 

535 

105 

97 HedmcaS 

97 

-1 

WWvQ 

IS 

52 

136 

- 

FP. 

- 

a 

82 M Biotech 

82 


_ 




m 

FP. 

- 

GO 

30 Do. Vtanants 

48 

4 

_ 

«, 


m 

5 

FP. 

440 

512 

5I2 Kaye Food 

Sl 2 


- 



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130 

FP. 

872 

138 

worn* 

120 

-5 WN04.7 

2S 

36 

13LS 

160 

FP. 

5&1 

163 

156 Lombrad ha. 

163 


WN7.7 

22 

Gfl 

9A 

- 

FP. 

33jB 

16 

13V My KJnda Town 

14Y 


- 

m. 

_ 


105 

FP. 

412 

113 

105 tOghtirafaM 

107 

-4 

R3J38 

2-0 

36 

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120 

FP. 

34.7 

129 125 1 ! Nmcor 

129 

*2 

W4S6 

26 

44 

If JO 

- 

FP. 

271S 

131 

118 BeOrcm 

123 

42 

WM2.7 

26 

2.7 

1&6 

- 

FP. 

292 

133 

128 Specialty Shops 

132 

-1 

L24 


26 


- 

FP. 

684 

100 

89 TR Eixd QMh C 

80 


- 




100 

FP. 

564 

100 

82>j TB Ptep hw C 

92h 

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100 

FP. 

434 


91 Tomphton Lat Am 

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41 Do Wrta 

43 


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ISO 

FP. 

4 12 

160 

154 Vymua 

160 


1444 

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ISi 


RIGHTS OFFERS 

tenia Amour Latest 
pries paid Ranun. 

P date 


1984 

Ugh Low Stock 


Ctaatep -rar- 
priee 
P 


27 

Xfl 

32JB 

105 

US 

8/7 

9 

M 

31/9 

287 

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270 

M 

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120 

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113*2 

NP 

SUB 

186 

N0 

11/7 

60 

N 0 

4/7 

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- 

12 S 

M 

4/r 


74tpm 4lgpm Bahcoc* InO 
18pm 16pm BteBEtart bate 
11 1 2Pm 8pm {taacfcantaUB* 
28pm 15pm CtydaBcmna 
84pm 44pm Carpasa 
26pm I9%>m D atu m M 
Ban Ityim Esgfcx 

26pm 24pm I tente m 

lipm iopm Paocan 

12 pm 10pm UM 

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'SENIOR 

ELEXOMCS 


A world leader in 
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FINANCIAL TIMES 

Weekend May 28/May 29 1994 


internet 




ri i. ,:0 ; <. ■ 


BBC, Upjohn and professor to pay damages ; Scrabble 

Halcion libel case costs | takeover 
likely to exceed £5m 


By Daniel Green 

The BBC, Upjohn - a US drugs 
company - and Professor Ian 
Oswald, a psychiatrist, face legal 
costs exceeding 53m at the end of 
one of the costliest Uhel trials in 
UK history yesterday. 

Damages totalling £210,000 
were awarded. The BBC, Upjohn 
and Professor Oswald were each 
found in a four-month High 
Court trial to have committed 
EbeL 

Justice Sir Anthony May said 
the BBC and Prof Oswald had 
been wrong to accuse Upjohn of 
deliberately misleading regula- 
tors about the possible side 
effects of the sleeping pill Hal- 
cion. 

At the same time, Upjohn 
libelled Professor Oswald, by 
attacking his scientific credibil- 
ity. 

Upjohn, which employed the 
specialist libel law firm Peter 
Carter-Ruck and Partners, won 
£80,000 from the BBC and £23,000 
from Prof Oswald. Dr Royston 


Drucker, an Upjohn employee, 
was awarded £75,000 against Prof 
Oswald. 

Upjohn faces legal costs that 
will probably exceed £2m. 

Prof Oswald, whose views on 
Upjohn and Halcion were broad- 
cast in the BBC’s Panorama pro- 
gramme and who wrote on the 
subject for the New York limes 
in January 1992, won a counter- 
claim against Upjohn and was 
awarded £30,000 in damages. He 
faces a bill for up to £2m. 

The BBC said yesterday it 
would appeal against the decision 
to award damages against it 
“This is a blow to investigative 
jou rnalism, " it said. It said it had 
kept legal costs relatively low 
through using staff lawyers. Its 
bill is likely to be less than 

£L5m. 

Halcion has a history of contro- 
versy involving claims that it 
could have side effects such as 
amnesia, paranoia and violent 
behaviour. Britain and several 
other countries banned the drug 
in 1991. The Panorama pro- 


gramme of October 1991 entitled 
"The Halcion Nightmare” alleged 
that Upjohn had deliberately mis- 
handled its clinical trials so as to 
provide evidence supporting its 
applications for approval of the 
drag: 

Upjohn admits it made "human 
errors" but denies deliberate 
wrongdoing. 

Each of the parties was heavily 
criticised by Sir Anthony. 

Upjohn bad been "thoroughly 
discreditable" and “reckless" in 
the way it had conducted the 
clinical trials, which reduced the 
damages awarded in its favour. 

The seriousness of the compa- 
ny's libel against Prof Oswald 
“speaks for itself*, and Upjohn 
“persisted with the allegations". 

The libels against Upjohn, how- 
ever. were “obvious and great", 
and Dr Drucker, a medical doctor 
had been accused by Professor 
Oswald of lying in a professional 
context 

“The allegation may have per- 
manently damaged his career," 
said Sir Anthony. 


Cornhill fined £150,000 for 
not controlling sales firms 

Lautro investigation finds insurance 
group neglected its role as overseer 


By Alison Smith 

Cornhill, the composite 
insurance group, has been fined 
£130,000 by Lautro, the life indus- 
try's regulator, and ordered to 
pay £45,000 costs for Jailing to 
control two firms which acted as 
appointed sales representatives. 

The announcement was made 
yesterday after a disciplinary 
hearing on Thursday night Corn- 
hill is said to have wanted to 
resolve the issue before the start 
of the first Test match between 
England and New Zealand on 
Thursday. Cornhill is sponsoring 
the series. 

The two charges, admitted by 
the company, relate to the activi- 
ties of Cornhill financial Man- 
agement (Northern Ireland), for- 
merly known as Castle Insurance 
Group, and Challenge Financial 
Management, between 1990 and 
1993. 

Lautro carried out special 
investigations into both firms 
last year. 

En cases where Cornhill foiled 
to ensure that its policies were 


sold by authorised sales agents, it 
has offered to return money, 
together with appropriate inter- 
est, to investors who might have 
suffered a loss. 

Cornhill refused to give any 
indication of the scale of the com- 
pensation, but Lautro noted the 
payments were "a significant 
cost to the company”. 

Cornhill was also charged with 
foiling to take steps to ensure 
that the two appointed firms met 
regulators' requirements in areas 
such as recording investor infor- 
mation and taking remedial 
action where problems had been 
identified. 

Cornhill foiled, for example, to 
react to concerns, raised even by 
some of its own staff, about the 
possibility of unauthorised 
s piling 

While the £150,000 penalty is 
only half those levied recently on 
Norwich Union and Premium 


Life, the charges relate to con- 
cerns raised during the first 
round of routine inspection visits 
in December 1990. 

The other most recent fines 
have related to misconduct from 
the second round of routine 
visits, for which Lautro has 
increased significantly the penal- 
ties it was ready to impose. 

Cornhill said the fine would be 
paid from shareholders' rather 
than policyholders' funds. 

It has ended its relationship 
with one of the appointed repre- 
sentative firms. Management at 
the other Brm involved has been 
changed since the period covered 
by the charges. 

Life and pensions policies rep- 
resent the smaller part of Com- 
hill's business. In 1993, Comhffl's 
premium income from life and 
pensions policies was £103.8m, 
while its general insurance pre- 
mium income totalled £605J2m. 


Meat men pack rolls for City battle 

to change the council franchise 
when the Corporation last 
requested it two years ago. 

When sheriffs are elected, only 
members of livery companies are 
allowed a vote. However, the 
poulterers and butchers - both 
likely to support Mr MartmeUi in 
force - between them account for 
about 800. Normally only about 
L000 liverymen bother to vote in 
contested elections. 


Continued from Page 1 

The government has refused 
requests to increase that sum. 

Private companies - which pay 
about 99 per cent of the City’s 
rates - are excluded, but civic 
leaders are now encouraging 
companies to grant employees 
tenancy of their buildings. 

British Petroleum, one of the 
Square Mile’s largest employers. 


has boosted its representation on 
the electoral register by allocat- 
ing car park spaces to employees, 
for a small fee. Technically, they 
are now resident, and can vote. 

Mr Cassidy believes meat trad- 
ers will take about a third of the 
seats on the general council if 
more private companies do not 
follow BP’S example before the 
June is deadline. The govern- 
ment refused to introduce a bill 


JLJL.JL on 
the board 


i By David Bfacfcwal 

i 

■ Hasbro, the biggest US toy and 
! games group, yesterday made a 

surprise move to become the 
' world’s undisputed Scrabble 
i champion- It launched a £4&9m 
( unsolicited bid for J-W. Spear, 
l the British company which owns 

• rights to the board game outside 
} North Ameri ca. 

Scrabble, which ranks along- 
i side Monopoly as a board game 
\ known throughout the world, is 
i produced in more than 20 lan- 

■ guafes and accounts far about 30 

• per cent of Spear's £38. 7m turn- 
over. This year the company is 

i planning to introduce versions 
, hi Turkish and Hungarian. 

Hasbro had sales or S2.7bn 
j (£l-8bn) in 1993. It has owned 
! Scrabble in Canada and the US. 
! where the game was invented 
: more than 50 years ago, since 

• 1989. 

It has been the UK company’s 
l biggest shareholder outside the 
i Spear family interests for the 
: past four years, with 28.7 per 
; cent The trustees of same Spear 
1 family trust s have given under- 
| takings to accept the Hasbro bid 
! in respect of a further 24.9 per 
i cent. Hie undertakings become 
| irrevocable next Friday if a 
j higher offer is not received. 

Hasbro is offering 900p a 
| share, a premium of more than 
21 per cent to the last reported 
i dealing price of 740p an May 12. 

The Spear board will meet this 
I morning to consider the bkL The 
i company, which in March raised 
' its final dividend by 36 per cent 
] on the back of a 22 per cent rise 
I in profits to £4Jlm, is expected 
! to find the offer inadequate. 

[ Mr Francis Spear, chairman. 

! would make no comment last 
j night, althongh he dismissed any 
{ idea of a family row. Mr Paul 
! Lipscomb, finance director, said 
: the bid had crane like a bolt from 
] the blue. 

j Spear’s other products indude 
j Atmosfear, a hoard game linked 
to a video, and more traditional 
pastimes such as Snakes and 
Ladders. 

Mr Alan Hassenfeld, chairman 
of Hasbro, said the acquisition 
would be "a logical extension of 
Hasbro’s strategy to develop and 
expand its core operations 
around the world”. 

The origins of Scrabble lie in 
the 1930s when It was developed 
as a crossword game by Alfred 
Butts, a New York architect 
whose practice was in trouble 
after the Wall Street crash. 

It was launched as Scrabble in 
1949 after almost two decades of 
rejection by leafing games play- 
ers as too highbrow. The game 
took off in the 1950s after the 
chairman of Stacy’s department 
store in New York became 
hooked and placed a large order. 

Mr Butts, a poor speller, 
earned only a 5 cent royalty on 
each set Nevertheless, at the 
peak sales levels in the late 
1950s and 1960s, he was getting 
about $50,000 a year. 


FT WEATHER GUIDE 


Europe today 

Most of western Europe will have dry conditions 
because of a high pressure system. There win 
be sunny periods Interspersed with clouds. 

The British Isles, the Low Countries ami the 
northern parts of Germany and France will stay 
coo!. Further south, warmer air will be present 
and, especially in southern and central Spain, 
the heat win persist Spain or southern France 
may have thundery showers later. In Italy and 
Greece, it will continue warm with plenty of 
sunshine. 

Central and eastern Europe will begin the day 
with clouds and there will be some thundery 
showers, especially in the Balkan states, 
in Scandinavia, It win continue to be coal but 
sunny, with some rain along foe Norwegian 
coast 

Five-day forecast 

The high pressure will promote dry corafltions In 
most of western Europe. Initially, It will be cool, 
but later, warmer afr wflf spread towards the 
north. 

Tropical heat from northern Africa will expand 
over southern Europe. Also, central Europe will 
become warmer, but on Sunday and Monday 
there will be a risk of a thundery shower. 

Cool conditions will prevail over Scandinavia, 
with outbreaks of rain In the north. 

TODAY’S TEMPERATURES 



Latest technology in flying; the A340 

Lufthansa 

German Airlines 


Situational IS GMT. Torr)pormroemaxmjm krday. fbmcosis by Gonsu^ of the NetheHonds 

Si Rangoon 

30 Ftayi^avfc 

31 Rio 

15 Roms 

32 & Freon 

18 Seoul 

25 Singapore 
31 Stockhol m 

26 Strasbourg 

16 Sydney 
14 Tangier 

20 TaiAviv 

26 Tokyo 

27 Toronto 
31 Vancouver 

21 Venice 

22 Vienna 
35 Warsaw 

17 Washington 
21 WaKngton 
20 Winnipeg 

19 Zurich 



Maximum 

Baang 

Mr 

25 

Caracas 

cloudy 

28 

Edinburgh 

doudy 

15 

Madrid 


Cehtus 

Belfast 

Mr 

16 

Cardiff 

far 

14 

Fan 

sun 

23 

Majorca 

Abu Dhabi 

sun 

37 

Belgrade 

sun 

25 

Casablanca 

teowsr 

22 

Frankfurt 

Mr 

20 

Malta 

Accra 

(bund 

32 

Berth 

MV 

ia 

Chfcago 

«st 

27 

Geneva 

Mr 

25 

Maneftwtw 

Apart 

far 

30 

Bermuda 

cloudy 

27 

Cologne 

Mr 

16 

Gibraltar 

Mr 

28 

Manna 

Amsterdam 

Mr 

14 

Bogota 

idn 

18 

Dakar 

Mr 

27 

Glasgow 

Mr 

15 

Melbourne 

Albans 

sin 

31 

Bombay 

doudy 

32 

Dallas 

Mr- 

30 

Hamburg 

Mr 

16 

Mexico City 

Atlanta 

aun 

26 

Brussels 

Mr 

16 

DaH 

hazy 

40 

Helsinki 

far 

15 

Atari 

B. Aires 

far 

15 

Budapest 

Mr 

21 

□Jakarta 

Mr 

31 

Hong Kong 

ttusid 

31 

MHan 

BJvm 

Mr 

14 

C-hagan 

far 

16 

Dubai 

sun 

36 

HonoMu 

shower 

30 

Montreal 

Bangkok 

thund 

36 

Cairo 

sun 

36 

Dublin 

far 

15 

Istanbul 

Mr 

25 

Moscow 

Boutons 

sun 

28 

Capo Town 

fair 

16 

DubrbvnBt 

sun 

28 

Jersey 

Mr 

13 

Munich 


KnM 

Kuwait 

L Angeles 
L» Palmas 
lima 
Lisbon 

London 

LuxJboug 

Lyon 

Madeira 


sun 

sun 

lair 

Mr 

Mr 

far 

Mr 

Mr 

fat 

fair 


35 Nairobi 
43 NspMs 

22 Nassau 
24 New York 

23 Nb» 

22 MooNa 
14 Oslo 
18 Paris 
27 Perth 
22 Prague 


Mr 

sun 

aw 

Mr 

cloudy 

shower 

ctaucty 

thund 

sun 

ram 

shower 

Mr 

fair 

an 

Mr 

Mr 

sun 

Mr 

Mr 

Mr 

shower 

Mr 


shower 

fair 

cloudy 

sun 

Mr 

far 

stumor 

far 

far 


33 

10 

25 

25 

23 

25 

28 

16 

21 


far 22 


far 
sun 
cloudy 
far 
Shower 
Mr 
Mr 
Mr 
aun 
shower 
shower 
far 


22 

34 

23 
18 
18 

24 
22 
17 
24 
16 
23 
21 


THE LEX COLUMN 


Shares take a tumble 


Those who thought last year's wave of 
liquidity would sweep equities over 
upwards must be truly distressed to 
see the ET-SE 100 index fall below 
3,000. As before, the problem origi- 
nates with bonds. This week’s decision 
by the Bundesbank to cancel an auc- 
tion of debt securities and an upward 
revision in US first quarter growth 
seemed calculated to upset bonds and 
therefore equities too. It is striking, 
though, that London equities, which 
fell 5 per cent this week, have been 
worse hit than their US equivalents. 
The Dow is little changed. 

Perhaps European markets were rel- 
atively more exposed to speculative 
international flows. That would 
explain the violent nature of the 
downturn. Perhaps too the earnings 
story was not strong enough to sus- 
tain' equities at higher levels. The Lon- 
don market does not look expensive 
on fundamental yardsticks. The pro- 
spective yield of around -i£ per cent Is 
not for short of what is available on 
cash. The prospective multiple of 
about 145 times is not very demand- 
ing. 

Yet such ratios do not make the 
market an unequivocal buy. While the 
bond markets remain nervous, there is 
a temptation to cling on to cash. 
Index-linked gilt yields are again 
uncomfortably close to those on equi- 
ties. and unsettling talk of govern- 
ment interference on dividends contin- 
ues. The market could have some way 
further to foil before it bounces. 

3i 

Yesterday's falling market was 
hardly an auspicious backdrop for 31 
to launch its pathfinder prospectus. 
The venture capital company has a 
fair wind behind it nonetheless. 
Assuming it is sold on a reasonable 
discount to net assets, the Issue 
involves only around £700m in new 
money. Since 3i will be snapping at 
the heels of the FT-SB 100 index, if not 
a constituent, institutions will need to 
acquire stock for weighting purposes. 
And since it is deeply involved in the 
small company sector, which is highly 
geared to economic recovery, the 
chances are it will outperform. 

The more difficult question is how 
for 3i is different from the run-of-the 
mill venture capital investment trust. 
Its argument that its broadly-based 
portfolio, close relationships with its 
customers and long-term approach to 
investment has considerable appeaL It 
should make of 3i a stock which shows 
both high growth and relatively low 


FT-SE Index; 29C6.4 {-5J.-3} 


D«U 


Shore prto» raiith* to 
FT-a&AMWNWfaftK 

180 - — 



volatility. That does not free it from 
the effects of the economic cycle - last 
year’s underlying 30.3 per cent total 
return could not be sustained in a 
downswing - but the 10-year record 
does show a higher average return 
than other venture capital and small 
company investment trusts. 

To some extent the comparison may 
be distorted by different methods of 
valuing unrealised investment gains. 
3i’s approach is linked to the equity 
market because it makes heavy use of 
market multiples. Its long-term aver- 
age return at 16.1 per cent is only just 
higher than the Home Govett Smaller 
Companies Index. Buyers may not 
require a discount to net assets as 
large as the is per cent applying to 
venture capital investment trusts. But 
the difference will not be great. 

BP 

BP will be the biggest winner if the 
US ban on Alaskan oil exports Is 
repealed. Not only is it the largest 
producer of Alaskan oil, accounting 
for 220m barrels a year. Unlike Atlan- 
tic Richfield, the other main producer, 
it does not have refineries in Calif- 
ornia where most Alaskan oil is pro- 
cessed. If the export ban were to go 
and producers were free to sell where 
they wished, the Cat Californian refin- 
ing margins would be squeered. 

The current regime requires BP and 
other producers to ship more titan a 
third of output through the Panama 
Canal to the US Gulf. Demand in Calif- 
ornia is just not big enough. Repealing 
the ban would allow them to ship 
crude to oil-hungry markets in the Far 
East, particularly Japan. 

BP would benefit in four ways. First 


shipping «wu would be roughly Me- 
60 c a barrel town* because of the 
shorter distance. Second, the group 
could obtain 2Qc-aGe more a barrel m 
the Far Bart than in the US Gulf. 
Third, prtcee for crate stripped to Cal- 
ifornia could rtae aa p tot haw would 
bo able to fiveat some of their oil from 
the state's saturated ma rk et . Finally. 
BP would find ft more attractive to 
develop its un t ap pe d Alaskan explora- 
tion acreage. 

The annual boost to BP* wndugs 
from just the first two teeters would 
be about ftEkn or marly ip i share. 
The other foctore are harder to quan- 
tify but would probably double the 
overall benefit A change in tin law b, 
of course, not certain, But. with the 
unions squared and the US Sbetgy 
Department moving towanfe lifting 
the ban. the chances of a repeal took 
good, 

De La Ri*/Portafe 

All credit to DeLa Rue for walking 
away from a hostile bid for Portak 
The logic of combining banknote 
paper-making and security printing 
wu nevar caamslltng, especially at 
the kind of bwrftymu&pl* De La Rub 
would have bad to pay for control. The 
risk of upeettiBg Ported other custom- 
ers weighed against benefits of 
pooling technology, it to a measure of 
investors' mpticttB that De La Rue's 
shares fan by Ifr per cent once the 
market caught acant of the talks. Yes- 
terday the stock ram by per cm 
against a talftng market 

Wider Brock market wobbles must 
have been a mixed blessing. Since De 
La Rue has a large cash pile, tailing 
share prices generally work in lu 
favour. But the equity component of r 
bid for Portals would have boon more 
difficult to gr ang e. That may have 
added to the pragmatic arguments for 
pulling hack from the brink. An 
unsuccessful hoetlls bid would 'also 
have soured tire rommordal relation- 
ship botwaeoJho two aides. One can 
only hope co-operation can. be 
achieved without the rigmarole of a 
takeover. 

De La Rue can take tore comfort 
from its participation in Camelot's 
successful bid far the national lottery. 
While the tottery should boost earn- 
ings. though, the company's Elim 
equity Investment in Came lot will 
barely dent Ha £25Qm cash pile. Still' 
De La Rue’s recovery since 1990 has 
been buiit on efforts to narrow the 
focus of the group. That record 
remains intact 








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WEEKEND FT I 



FINANCIAL TIMES WEEKEND MAY 28/MAY 29 1994 


* "n > ( \ 



dFT 




lu nibi. 


SECTION II 


Weekend May 28/May 29 1994 






A lexander Solzhenit- 
syn, whose Image in 
the west is that of the 
conscience of Russia 
in exile and the liter- 
ary heir to Dostoyevsky and Tol- 
stoy, returned yesterday to his 
country - bowing low on his first 
steps out of the plane in Magadan 
to honour the memory of the many 
thousands of Soviet convicts who 

perished there. 

For two decades he has been an 
occasional, austere and often angry 
voice in exile: he returns to a l and 
where his generation Is dying or 
exhausted, the next is deeply com- 
promised and the youngest is scep- 
tical, even scornful, of the impera- 
tives which have driven him 
Grigory Amelin, a young literary 
attic, caught this iconoclastic mood 
In a squib he wrote recently for 
Neuwisimaya Gazeta. one of the 
smart new Moscow dallies. In com- 
pressed. stylised Russian, he began: 
“His books piled up to the roof; his 
beard fit for Hollywood, his con- 
science scrubbed absolutely spot- 
less. be appears in Russia like a 
holiday, like the First of May - and , 
like it, shamelessly out of date ... In 
Moscow he'll be received like a 
demi-God . . . but who needs him? 
No one . . . For a long time now he 
has understood nothing either of 
America, or of Russia." 

He ended: “Solzhenitsyn is a spiri- 
tual statue, he is like a hatstand in 
the lobby, displaying a vast arro- 
gance, spouting prophetically - but 
in the end, pretty moth-eaten.*' 

It was a stone dropped into trou- 
bled waters. On his return to Russia 
after 20 years (he was forcibly 
deported in February 1974), Solzhen- 
itsyn will doubtless be honoured 
and treated as a “spiritual statue". 

But he will also be reviled; 
pushed and pulled to lend his name 
to causes; re-evaluated as a writer 
as he has not before; and pestered, 
gawped at and petitioned in a way 
which would try the nerves and 
strength of a man with a less auto- 
cratic and solitary temperament, 
and with fewer years than his 75. 

More, he will be - already is - a 
touchstone for the intellectual and 
political classes, a measure of their 
own moral and creative worth. He 
may also be, after an initial flurry, 
ignored - which he has not been tor 
more than 30 years. 

Some of this was demonstrated as 
much by a defence of him as by the 
jnitkil attack. Vladimir Bukovsky, 
himself a man of courage whose 
dissidence in the 1960s earned him a 
sentence and then deportation, 
wrote in Izoestia from his now vol- 
untary exile In the English univer- 
sity town of Cambridge, that Russia 
was “struggling not so much with 
economic collapse as with a com- 
plete atrophy of conscience ... (Peo- 
ple) hate those who are not soiled, 
who did not sup from the cup of the 
Communist Party with everyone 
else. They never forgive that" 
Bukovsky, naturally, was being a 
little autobiographical; he has pro- 
fessed himself deeply disappointed 
by what Is happening in Russia, see- 
ing everywhere a return to commu- 
nism in practice if not in name. 
Speaking from Cambridge this 



Who needs Solzhenitsyn? 

A mixed reception awaits the writer as he returns to his Russian homeland John Lloyd reports 


week, Bukovsky said that “It might 
be possible for him (Solzhenitsyn) 
to have a kind of spiritual appeal to 
people. I wish him well mid I hope 
he can - but I doubt it's feasible 
with this generation, it’s not pre- 
pared for him. The next generation 
might." 

“He should,” says Lev Anninsky, 
a prominent writer and chairman of 
the Russian Booker Prize Jury for 
this year, “stay out of politics. He is 
a writer grant him a place to 
write.” 

That he will write is certain, since 
bis life has been an obsessive, some- 
times heroic, struggle to find the 
space and the time and the freedom 
to write: but Anninsky’s hope is 
probably vain, for two reasons. 

First, Solzhenitsyn is a man who 
evolved, even before he left it, a 
view of Russia which, though indi- 
vidual, nevertheless intersects with 
many of the dominant themes of 
current political and social struggle. 

He had come to believe, especially 


from the airly 1960s, that Russia 
was not just a country but a dvflls- 
ation apart as his greatest biogra- 
pher, Michael ScammeQ, has noted 
On Solzhenitsyn: a biography, Nor- 
ton, 1984), he even went so for as to 
agree with (though not to work 
with) a strain in the Soviet commu- 
nist party which stressed the 
nationalist, chauvinist values 
against the more liberalising and 
pro-western current winch emerged 
after Khrushchev came to power. 
And though he honoured Andrei 
Sakharov, the late physicist and 
human rights campaigner, Solzhen- 
itsyn’s dissidence bad a very differ- 
ent philosophical and political base 
from that of the liberal, relativist 
scientist 

In his famous Harvard speech, 
given in 1978 when he received an 
honorary degree from that univer- 
sity, Solzhenitsyn excoriated the 
west, assumed its long-term decline, 
blasted the "collapse of courage" in 
intellectual and political life, poured 


score on criminality, on the popular 
media and on the consumer culture. 

That view is largely unchanged: 
he sees Russia as a cultural fortress 
to be defended, not as a too-long-lso- 
la ted imperial power which must be 
democratised mid led to the market 

On the contrary: be has made 
clear over the past year that he sees 
the liberal reformers as dangerous, 
guilty of reckless experiments with 
the country on a par with those of 
the Bolsheviks eight decades ago, of 
having reduced Russia to poverty, 
depen de nc e and criminality. 

"He is," says the liberal philoso- 
pher Yuri Senokossov, “a man who 
does not speak to the needs of our 
times. I honour him for his courage 
and his actions: I don't follow him 
in what he now thinks and feels. He 
wants a strong hand: a return to the 
zemstvos (or pre-revolutionary vil- 
lage councils). He does not want the 
'institutions of constitutionality and 
legal forms: but these are the 
essence Of budding a state which 


protects its citizens.” 

Second, bis view of the scope of 
Russia has also been set out clearly, 
in his pamphlet How we should 
reconstruct Russia, published four 
years ago. It was. when published, 
daring in one way - a blast against 
empire, a call for Russia to let the 
dependent Soviet nations in Central 
Asia, the Baltics and Transcaucasia 
go. find their own routes to national 
independence. Russia, he argued, 
should define itself as the Slav area 
- the Russian Federation itself, 
Ukraine, Belarus and Northern Kaz- 
akhstan, 


T his recipe is now daring 
in another way: it is the 
programme of the 
nationalist politicians 
who would indeed 
reconstruct Russia to Include at 
least these peoples; and strong ech- 
oes of it are now to be found in the 
official, government rhetoric, even 
as tibe Russian president and gov- 


ernment remain formally commit- 
ted to the recognition of the inde- 
pendence of the former Soviet states 
around them, 

To have Solzhenitsyn, with the 
authority he can still command, liv- 
ing and working in Russia and rep- 
resenting, even if not actively pro- 
pagating, such views could be a 
moral boost to this wing of Russian 
polity - even though he has made it 
dear he has no time for the more 
rabid expressions of the idea, such 
as those of Vladimir Zhirinovsky of 
the Liberal Democrats. 

Thus the cannier leaders In the 
opposition forces - nationalists, 
communists and others - already 
see him as an ally, even if only 
because their enemies might 
become his enemies. 

Gennady Zyuganov, leader of the 
Russian Communist Party, said in a 
comment earlier this week to the 
Eomsomoiskaya Prttvda daily that 
"we should expect him to be critical 
- especially towards the authori- 


ties, and the president”. (Though 
others in these circles dismiss him 
with the same contempt os Amelin: 
Alexander Nevzorov, the nationalist 
journalist, asked sarcastically: 
"Who is he anyway? A writer? He’s 
more of a propagandist. A histo- 
rian? But from his novels you 
would understand history as from a 
Dumas novel.”) 

He will, it is likely, be either 
dragged or move of his own volition 
into the political maelstrom. His life 
in Russia, from the publication of A 
Day in the Life of Ivan Denisovich. 
in the journal Wavy Mir in 1962, 
until bis expulsion 12 years later, 
was stormy and public. 

Much of this was because the 
Communist Party could not leave 
him alone, whether as tat first) a 
“true son of the Party" for his per- 
ceived value in exposing Stalinist 
excesses, or - increasingly - as an 
enemy of the people, the “crime" for 
which he was expelled. 

But part of it was his own choice: 
though be sincerely craved space to 
write and usually created it. he 
could also not stand aside from 
bearing witness to the crimes of 
Soviet society - even if he did so 
with generally greater caution, and 
circumspection than other, usually 
younger, dissidents, being ever 
careful to protect his precious 
manuscripts and freedom to write. 

'Will he be different now? The 
manner of his return yesterday- 
speaks of the public rather than the 
private man - a touchdown in the 
former prison camp area of Maga- 
dan, then to the far -eastern city of 
Vladivostok, a planned train ride 
through the country to examine its 
state, accompanied by the BBC. 

The voracious media, which he 
has both courted and hated, will no 
longer observe the courtesies they 
maintained while he passed nearly 
20 years in seclusion in Vermont, 
where he created a refuge into 
which little American was allowed 
to intrude. 

He will be thrust into the pulpit 
whether he likes it or not Says one 
of his detractors from the national- 
ist camp, Shamil Sultanov of the 
weekly Den: "Various political 
forces of the left and the right and 
the centre will try to use him for 
their own ends... but when these 
attempts do not work - and they 
wffl not - they will lose all interest 
in him." 

Says Gavril Popov, the former 
mayor of Moscow: “If Solzhenitsyn 
takes part in politics, his reputation 
will ML" And he adds: “He's come 
back a little too late.” 

This is a general theme of com- 
ment an him: that had he returned 
(as he at one time said he would) in 
the last years of the Gorbachev 
period, then he would have been 
swept up into the pantheon of the 
liberalisers and truth-tellers, taking 
his place with Sakharov. At that 
time, to read Gulag Archipelago - 
his stunning account of the camp 
system - was a cross between a 
civic duty and a fashion. But now, 
he returns to a divided, exhausted, 
struggling land. 

“He missed the great period - 
Continued on Page X 


CONTENTS 

PI — H oa & Family : Building the 
right portfolio 111 

PecwfMcttvoa : The superbug that 
causes national hysteria XI 

Food : Great British eating - the 
revival of the oyster bar XMI 

Sport : England’s - captain plays a 
straight bat XIV 

Gardening: Marvellous Chelsea 
blooms in the gloom XV 

Arts s Through the eyes of the war 
artists XX 


The Long View / Barry Riley 

Treasury plays with fire 



l-tteta van dor Post meets Gianni 
Vnrsaoa, designer of mat dress XJI 


Crossword 

f— I 

5— aasttw— m*y 

Obtain 

Hfe.TbSpandtt 


**ypi6wpiiBn^ 


XIX, XX 
xvw 

XX) 

» 

M 

HHX 

XM 

XV 

XU 

XXII 

II 

» 

XTV 

XJV 

ion 

XVtXVB 

XM 


' Surely the London stock 

market is in a jittery 
enough mood without 
being undermined by 
the vague anti-dividend 
threats which have 
been dribbling out from 
the government - this 
week, in the Competi- 
tiveness White Paper. 
The Treasury ministers are playing 
with fire at a time when British invest- 
ment institutions are already faced 
with the likely need to make fundamen- 
tal shifts in their strategy. 

Many pension funds, certainly, are 
plucking up courage to reduce their 85 
per cent exposure to equities (60 per 
cent in the UK, 25 per cent overseas) for 
two reasons. They are becoming 
mature ; fewer employees are paying 
contributions, more pensioners are 
receiving benefits, and shorter-term 
investment strategies with a higher 
fixed-income content are becomi ng 
appropriate. Second, a new minimum 
solvency Stamford for pension funds is 
likely to he trailed in a white paper tins 
summer. Again, this will encourage a 
lower risk strategy, with less reliance 
on equities prone to the occasional sol- 
vency-busting crash. - 
The Treasury has looked around the 
world and noticed that British compa- 
nies pay bigger -'and steadier dividends 
th«»n their counterparts almost any- 
where else. Dividends soared at the rate 
of 15 per cant a year in the prosperous 
late-l990s; and although growth halted 
during the recession, they are no w 
advancing again quite strongly, even 
flwng h average dividend cover is his- 
torically low. . 

This week, for instance, Marks and 
Spencer raised its dividend by 1&6 per 
clntand S.G. Warburg by ISA per cent 
The All-Share index constituents are 
payingout almost 7 per cent more than . 
a war ago, and some City analysts 
expect dividends wiH soon be cli mbi ng 
at 10 per cent on average. , 

Certainly, the present tax system 
encourages high distrib^ns. and i 
has happened 

vmen the corporation tax system was 


introduced 20 years ago, it was designed 
to be dividend-neutral - that is, the 
same tax would apply whether profits 
were retained or paid out to sharehold- 
ers. When investors are liable to stan- 
dard-rate fonrynp tor , flifa remains true: 
out of £100 of pre-tax profits, a company 
can retain £67 after tax, or pay out 
anything iq> to £67 in net dividends. 

Since the early 19708, though, there 
has been a vast increase in the number 
of UK shareholders who are tax-exempt 
Pension funds have grown enormously 
over that time and now own 35 per cent 
of the shares of British companies; 
charities also own equities to a much 
greater extent than they used to. 

Moreover, daring the past 10 years 
the government has invented personal 
equity plans and personal pension 
plans. Altogether, tax-exempt domestic 
investors own more than 40 per cent of 
UK equities. If there really is a dividend 
problem, it has been created by the 
Treasury’s own initiatives. 


E xempt investors can daw back 
most of the underlying corpo- 
ration tax on a company’s 
profits by reclaiming the 
imputed tax on dividends. Until the 
rules were changed slightly to the 1993 
Budget, the a fB af i i v a tax rate cm under- 
lying pro fit s. - taMog the emtini m y jmd 
the exempt shareholder together, was 
only 10% per cehtrafher than the 83 per 
cent on undistributed profits.. Last 
year’s measures raised this “look 
through" tax rate to I6W per cant;- to 
the fury of pension funds; but almost 
three-quarters of the previous incentive 
for distribution remains intact. 

The steady and growing stream of 
dividend income whichthis favourable 
tax structure has generated has encour- 
aged the who value British 

pepsion and life assurance ftrada to cal- 
culate share values cm the basis of capi- 
talisation of income rather than 
day-today stock market prices. But fur- 
ther adverse tex changes would directly 
threaten the actuarial value of equity 
portfolios by reducing gross dividends. 
Moreover, if dividends become much 
more volatile and risky, as the Treasury 


has hinted would be desirable, share 
prices would suffer. 

The arguments for and against high 
dividend payouts are inconclusive. One 
line of reasoning is that companies 
should pay out most of their earnings, 
so long as it is tax-efficient to do so, 
because shareholders and the markets 
can decide better than company execu- 
tives in particular industries where the 
best new investment opportunities lie. 

On the other hand, in countries such 
as Germany they do not pay much 
attention to the priorities of what they 
regard as short-term market specula- 
tors. And, to the UK. the Institute of 
Fiscal Studies has just published a 
study which suggests that companies 
will invest internally-generated funds 
to expansion projects more readily than 
funds raised externally, which, they find 
more expensive. More dividends could 
mean less expansion. 

The most that can be said is that a 
system biased to favour of dividends 
could be slightly disadvantageous. But 
this discussion should be strictly 
reserved for a bull market. It is per- 
verse and dangerous for ministers to be 
flying these kites at a time when share 
prices are under heavy pressure from 
rising bond yields. 

Look at the returns on index-linked | 
gflts - which pension tends regard as a 
close alternative to equities. From only 
29 per cent at the beginning of the 
year, the index-linked yield has been 
rising consistently throughout 1994; 
this week, it tapped 3.7 per cent Histor- 
ically, It has been a danger signal for 
equities when the equity and index- 
linked yields have collided, and so it 
proved on Wednesday this week. After 
the FT-SR 100 Index crashed by 68.4 
paints and the yield rose to 39 per cant, 
a chtok at daylight re-appeared com- 
pared with the yidd on linkers. 

Yield relationships to the UK securi- 
ties markets are under strain. Careless 
talk is bad enough, but investors might 
gain the impression that the anti-divi- 
dend campaign is designed deliberately 
to steer institutions towards gflts. This 
is no way to achieve industrial competi- 
tiveness. 


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MARKETS 


London 


Camelot 
offers refuge 
from bears 


Interest rates: fatal attraction 

FT-S£ 100 A 
Index V 

3 £00 


10 year benchmark bond yfeM 
Par cent 

: — ao 


Roderick Oram 


C amelot here we 
come! At 14m to one, 
the odds on winning 
the jackpot in the 
new national lottery seem a lot 
shorter than making money in 
the currently miserable stock 
market 

Only two things are required 
of us by the Camelot consor- 
tium awarded the lottery 
license this week: pay it £1 and 
arrange six numbers in the 
same order it picks. 

Six numbers only the glum- 
mest bears were betting to see 
this year were 2£00.00 on the 
FT-SE 100 index. But by the 
close of play yesterday, after 
the index had fallen below 
3,000 for the first time in eight 
months, th» odds on the index 
hitting that number had short- 
ened considerably. 

The 1G0JJ point, 5 per cent, 
drop in the Footsie this week 
was caused by the same factors 
which have remorselessly 
driven equities back from their 
January peak: good news on 
economic growth and slightly 
poor news on inflation com- 
bined to wreak havoc in bond 


markets at home and abroad. 

The rot started in Helsinki 
on Monday when Hans Tlet- 
meyer, Bundesbank president, 
indicated that German intaitwt 
rates might not fall further in 
the short-term. By the time the 
Germans had aborted a govern- 
ment bond auction and 
released another remarkably 
strong figure for money supply 
growth on Wednesday, Euro- 
pean bond markets were con- 
vinced interest rates had 
nowhere to go but up. Equities, 
stOl fatally attracted to the fall 
and rise of Interest rates, had 
nowhere to go but down. 

Is It right equities should 
drop back to where they were 
eight months ago? After all, 
the UK’s economic recovery is 
firmly established with, for 
example, factory orders in May 
at their highest level in five 
years. The corporate results 
season has been even better 
than forecast with dividends 
rising 7 per cent on average. 

For most analysts the 
answer is a r esounding “no". 
The sell off "is quite ridicu- 
lous,” says Paul Walton, equity 



as 


7.0 


TJS 


r ao 


&5 


strategist at James CapeL He 
lays toll blame at the feet of 
futures traders. 

Yesterday, for example, he 
says they took very bearish 
positions in bond futures after 
the latest US data was 
released. But their positions 
exaggerated the threat (he data 
posed to US interest rates, let 
alone European ones. Wall 
Street took the news better 
than London. The traders 
aggressively sold stock futures 
to profitably exploit equities' 
slavish attachment to bonds. 
This forced market makers to 
slash stock prices rather than 
risk exposure over a long 
weekend. However, the light 
share trading at these lowered 
prices, indicated that investors 
are disinclined to stampede for 

fhfi 

“The markets should not be 
down at these levels but the 
negative sentiment is still 
there,” says Ian Harnett strat- 


HIGHLIGHTS OF THE WEEK 


Price 

y'day 

Change 
on week 

1994 

Hgh 

1994 

Low 


FT-SE 100 Index 

29664 

-160.9 

35203 

29604 

European Interest rate concern 

FT-SE MM 250 Index 

35723 

-14 23 

4152-8 

3572J 

Following blue chip stocks 

BAA 

910 

-70 

1083 

909 

Taflt at expansion in Australia 

BPB 

288 

-32 

363 

287 

Competition worries 

Donation Tyson 

13 

-6 

26 

12 

Warns of dividend cut 

Enterprise Oil 

399 

-29 

486 

398 

LASMO bid situation 

Eurotunnel Uts 

359 

-16 

665 

339 

Rights Issue 

Inchcape 

490 

-39 

609 

490 

Profits warokig 

Ladbroke 

171 

-28 

2171* 

1621* 

Bearish egm 

PA O Defd 

619 

-58 

743 

6121* 

Channel price war 

Shell Trans 

700 

-36 

755 

651 

EC opposes Montedison deal 

Shoprtte 

80 

-90 

243 

BO 

Profits warning 

Smart (J| 

195 

-23 

245 

195 

Disappointing results 

Trafalgar House 

861* 

-11 

124 

86 

Poor figures, downgraefings 

United Centers 

106 

-42 

.160 

.106 

Negative tradkig statement 


egist at Soctetg Gdndrale 
Strauss Turnbull. 

He concedes that "there are 
some fundamentals to hang 
the weakness on” such as the 
high real yield OU inder linked 
gilts. But down at, say, 2J500 on 
the Footsie, equities offer indis- 
putable value: a dividend yield 
of ■LS per cent and a prospec- 
tive price/eamings ratio of 
about 12.5. “We’ve not seen 
values like thin since the 
depths of the recession.” 

He says two nnnrijtims are 
needed to reverse the equity 
market’s slide: a correction in 
over-sold bond markets; and a 
change in investors’ focus from 
Interest rates to earnings. 
“Even if interest rates are 
htwittng upwards, tMy is for a 
healthy reason: the economy is 
growing and so are corporate 
profits and dividends.” 

Analysts at SG Warburg 
Securities concur. Rising inter- 
est rates have “not necessarily 
been a bear signal for equi- 
ties” they note. For example, 
two recent periods of strong 
growth and climbing rates, 
1984-85 and 198889, saw equi- 
ties rise 17 per cent. “The 
recovery which prompted the 
upward pressure on rates also 
prompted growth in earnings." 

Warburgs is less sanguine 
than Strauss Turnbull about 
equities' ability to assert their 
attractiveness. “The valuation 
arithmetic is sufficiently 
stretched to suggest little hope 
of equities de-coupling from 
bond market trends this sum- 
mer." 

The greatest havoc tailing 
share prices created this week 
was in the new issues market 
A number of high profile com- 
panies pulled their flotations 
rather than cut offering prices 
to encourage investors. Tele 
West and General Cable In 


cable television, London Capi- 
tal Holdings in property and 
Murray Johnstone's smaller 
companies fund in investment 
trusts were prime examples. 

One float which was priced 
was London Clubs Interna- 
tional, the casino operator. The 
news was less cheerful at Lad- 
broke. Its warning of a down- 
turn in its credit betting busi- 
ness knocked its shares. 

The biggest poker game in 
town, the Eurotunnel rights 
issue, has so tor paid hand- 
somely for the houses organis- 
ing it A group of advisers lead 
by SG Warburg Securities, 
Morgan Grenfell and Banque 
Suez will earn £42m for pulling 
off the £858Jim rights issue. 

Eurotunnel says the £L-&m it 
has raised in the past week has 
ensured its viability. There is 
little room for manoeuvre, 
though, within the tight traffic 
forecasts. Shareholders who 
take up the rights will have to 
wait into the next milleruxitmi 
for dividends. 

A string of results from large 
companies underscored the 
strength of the corporate 
recovery: British Airways’ pre- 
tax profits for the year to 
March were up 63 per cent to 
£300m and Marks and Spen- 
cer's pro fi t s rose 16 per cent to 
£851-5m. 

But investors wanting a 
surer punt on future earning s 
need look no further than, the 
Camelot consortium. Smith 
New Court forecasts that mem- 
bership of the grouping will 

enhance the earning s of Cad- 

bury-Schweppes by 3 per cent, 
of De La Rue by 9 per cent and 
Racal by 22 per cent. And all 
that on only a 0.6 per cent 
profit margin, such is sheer 
volume of money the British 
public Is expected to gamble an 
six numbers. 


Serious Money 

A slowly-emerging 
blue chip share 

exilian O'Connor, personal finance editor 


E merging companies 
are the home grown 
answer to emerging 
markets: the inves- 
tor’s way of taking a stake in 
tomorrow's world. Not all new 
British businesses will suc- 
ceed. But some wilL And one 
of tire better times to buy them 
is when the economy is mov- 
ing out of recession - as it is 
now. 

But buying into emerging 
companies is tricky - as many 
Business Expansion Scheme 
investors found to their cost 
So file safest way to do it is by 
taking a stake In a group with 
proven experience in the field. 
And when venture capital is 
concerned, blue chips do not 
come much bluer than the 
giant 3L It will never be a hot 
shot growth stock. It is a long 
term value investment 
That is the Hmap argument 
in favour of investing in the 
shares, which are coming to 
the gtoclnwarteet nwrt month* 

Of course there are other 
points to consider, like the 
price. You can expect weds of 
debate over whether the inves- 
tor is likely to get a cheap deal 
The equity market is soggy 
and scared at the moment and 
some other lesser new issues 
have been pulled. And since 
existing 3i shareholders are 
keeping the majority of their 
holdings, they have a strong 
incentive to make the issue a 
success. So the launch price 
could well be at an appetising 
discount to asset value. 

But of course the board and 
its advisers will be doing their 
best to create an atmosphere of 
scarcity. After all, only 40 per 
cent is on offer, and institu- 
tional investors need to get 
their weightings up. And so on, 
and so forth. 

This is all good clean fan, 
but it misses the mam point 
If 31 is a long term invest- 
ment, skirmishing over the ini- 
tial price is essentially a side 
show. Stags may make a bob 
or two out of the launch - if 
the pricing and the market 
move in their favour. Or the 
issue may struggle to get 


away. But anyone who 
approaches the issue in search 
of a gmaii stagging profit is 
bring street smart to the point 
of myopia. 

□ □ □ 

It would be churlish to carp at 
the shortcomings of the sew 
monthly unit trust guide. Unit 
Trust Analysis ** boldly goes 
where no serious consumer 
publication has gone before: it 
provides statistical information 
on over 300 of the most consist- 
ent unit trusts, plus a brief 
description of their investment 
objectives, strategy, and portfo- 
lio split 

Given the dearth of accessi- 
ble factual information on 
trusts, the guide is as welcome 
as a McDonald’s in the desert 
And it retails at unde- £150 a 
year. 

Each trust gets a page remi- 
niscent of a simplified com- 
pany Extel card. The Individ- 
ual reports, neatly collected in 
a looseleaf binder, will be 
updated twice a year. The six 
sectors covered, UK equity 
income, high income, interna- 
tional equities, UK equity 
growth, far east, Europe and 
north America are among 
those likely to be popular with 
private investors - though a 
section on general trusts might 
have been, handy. 

The guide is produced by 
Fund Research, whose existing 
service caters for financial 
advisers. The professional ser- 
vice grades funds, more than 
half the “marks” coming from 
the qualitative assessment of 
the fund and its managers. 

This qualitative assessment 
is the result of frequent and 
exhaustive in t erviews with the 
fund managers. Fund Research 
always insists that its ratings 
are not investment recommen- 
dations. But a Triple A rating 
for a fund from Fund Research 
keeps financial advisers happy. 

Lack of such qualitative 
assessment is the obvious flaw 
of the private investor guide. 
For, rather than piggybacking 
on the existing research, the 


retail guide Is standing on its 
own feet What a shame. 

□ □ □ 

Derivatives pop Up to the most 
unexpected places. How many 
of the homeowners happily 
enjoying their fixed rate mort- 
gage realise that it is probably 
based on derivatives? 

An increasing part of build- 
ing society lending is at fixed 
rates, but the vast majority of 
their borrowing - from indivi- 
dual savers - is at variable 
rates. This mismatch leaves 
the society vul n erable to mar- 
ket movements. If interest 
rates toD.they benefit, if inter- 
est rates rise, they suffer. This 
lack of control over their own 
fortunes mates building soci- 
ety managers sleep badly. 

So the societies get rid of the 
risk by taking out a "swap”, 
which allows them to exchange 
their stream of fixed rate 
Income for a stream of variable 
rate income. And suddenly 
they are back in a world where 
both sides of their balance 
sheet have variable rates 
again. If interest rates go 
down, they no longer benefit, 
but they are not at risk when 
they rise. The tricky bit is 
deciding whether to lend first 
and swap later, or vice versa. 

□ □ O 

Dutch fund munf i gepTimt giant 
Robeco this week claimed that 
its experimental portfolios 
based on “behavioural finance" 
outperformed markets by 17 
per cent in 1992 and 1993. 
Behavioural finance Is the new 
name for a rather old theory 
that markets tend to excess, 
both at the top and at the bot- 
tom. Investors frequently fail 
to act in a logical way. The 
canny investor is the one who 
bases his strategy on how peo- 
ple do act; not on how they 
would act if they were rational. 
* 3i Share biformatum Office 

tel 0645-313131 

** The VTA Guide £149.50 a 
year (phis annual p&p £12.50). 
0800-133075 


I AT A GLANCE j 

Finance and the Family Index 



IV 


VI 

Kevin Goldstein-Jackson/InraTne trusts 

The true costs of investing/Panston audits — - 

-VII 

...... VIII 


British Airways SG Warburg 

Share pries (pence) Share price (penes) ■ 

500 1,100 ; 




BA warning in spite of 63% 
rise in pre-tax profits 

British Airways this week reported a 63 per cent rise in pre-tax 
profits to more than £3 00m for the year to March, but warned 
that it might have to make provisions on a £27 5 -3m investment in 
USAir, Its troubled US partner. 

Annual pre-tax profits totalled £301 m, compared with £185m in 
1992-63. BA's progress reflected its cost-cutting drive, increased 
revenues and a 6 per cent recovery In first and business class 
traffic. The future of BA’s 24.6 per cent stake In USAir remains 
the biggest cloud over its short-term prospects. Among Its global 
alliances, only Gantas. the Australian airline, is making any 
money. 

S G Warburg doubles profit 

SG Warburg, the Investment bank, this week reported record 
pre-tax profits for the year to March 31, reflecting sustained 
growth in com mis sion and fee income from advisory and 
underwriting activities. 

At £297m, profits wore double the comparable £14&2m for the 
previous year, on total operating Income of £1.Q4bn (£71 5.8m). 
Earnings per share were 82.4p (39.6p) or 75.7p (37.5p) folly 
dbted. The total dividend is increased to 22p (19p) with a 
proposed final of 16p. 

The business, in common with the industry, has had a good 
year,” said Lord Cairns, chief executive. However, he added: "It 
could prove to be a peak year In the economic cycle." 

Friendly society rule change 

Members of the Lancashire & Yorkshire Assurance Society 
approved a rule change at the friendly society’s annual general 
meeting on Wednesday, sanctioning a 12 per cent levy Imposed 
on their potides to create a compensation fond. The decision 
followed a high court ruing last year that 39,000 policyholders 
who lost money because of unauthorised investment in property 
by the society must be compensa te d. Compensation is (foe to be 
paid m September or October, after which members will be 
consulted on the society’s future. 

Guide to investment capital 

Sharelink, the telephone dealing service, has Issued a free guide 
to the Investment capital industry and 3Ts position In It The 
booklet and details of hew to register for the 31 offer can be 
obtained by caning Sharelink on 021 200 776a 

Smaller companies decline again 

Smafler company shares continued to decline this week. The 
Hoare Govett Smaller Companies Index (capital gains version) fail 
1.6 per cent to 1708.34 over the week to May 2a 


Wall Street 

The third demon has reared its head 


H ere we go again. 

Jost when Inves- 
tors thought the 
demons which had 
plagued US finandai markets 
throughout the spring had 
been exorcised, an unexpected 
upward revision in first quar- 
ter economic growth sparks a 
sell-off in bonds and revives 
fears that the Federal Reserve 
might have to reassess its deci- 
sion to place monetary policy 
on hold. 

The doable demons of rising 
inflation and rising interest 
rates are back, or so it seemed 
to investors early yesterday, 
when they lowered the bench- 
mark 30-year bond three quar- 
ters of a point pushing the 
yield above 7.4 per cent and 
took 10 points off the Dow 
Jones industrial average in the 
opening minutes of trading. 

Investors were selling stocks 
and bonds on the heels of an 
upward revision In the first 
quarter gross domestic prod- 
uct data, which the Commerce 
department changed from 
originally estimated growth of 
2.6 per cent to growth of 3.0 
per cent 

Jost as worrying, the fixed 
weight deflator, a closely- 
watched inflation measure. 


was also revised upwards, 
from 2.9 per emit to 3.1 per 
cent 

Stronger economic growth 
and higher inflation was Just 
what Wall Street did not want 
to hear about, especially com- 
ing so soon after the markets 
had staged an im pressive rally 
in the wake of the Fed’s fourth 
interest rate increase in as 
many months. 

The only reason why that 
rate increase had been so well 
received was because traders 
and investors judged that it 
would be the last in a round of 
monetary tightenings that 
began on February 4. The eco- 
nomic revisions, however, 
suggested that this judgment 
may have been premature. 

Yet, yesterday’s declines 
might have been a lot worse. It 
was the markets’ good fortune 
that within hours of the first 
quarter GDP revision being 
announced, Alan Greenspan, 
the Fed's chairman, was np 
before Congress at a pre-ar- 
ranged hearing explaining the 
thinking behind the central 
bank's recent policy manoeu- 
vres. Rarely can Wall Street 
have enjoyed such an immedi- 
ate opportunity to listen to 
what the Fed chairman 


Dcnv Jones Indu stria l Averag e ", - * • ■ • '■ . 

. . .. *• • • • ■ ■■ 4 <. ■ . 



•tor; • ••••'• .-••.tWri'V- May 

Sauca; FT Graphte »* 


thought of some troubling eco- 
nomic figures. 

Unfortunately, Greenspan 
was less than forthcoming and 
did nothing to assuage inves- 
tors' fears. If anything, he 
only marie their mood worse 
by reintroducing the third 
demon that has been plaguing 
the markets this year: uncer- 
tainty about the direction of 
Fed policy. 

The next meeting of the 


Fed's open market committee 
is not tuxtn July 5, so the mar- 
kets have a stretch of more 
than five weeks ahead of them 
to which to sweat about the 
possibility of another rate 
increase. (The Fed, of course, 
could tighten policy again 
before the FGMC meets, but 
analysts believe the central 
bank Is most likely to wait 
until July 5 before mating 
another policy move.) 


Renewed uncertainty can 
only mean more volatility far 
securities prices in the month 
ahead, with investors likely to 
react sharply to every piece of 
economic news they believe 
might have a bearing on mon- 
etary policy. 

A week ago It looted as If 
the markets had tnrned a cor- 
ner; bond yields had dro pp ed 
decisively below 7.8 per cent 
and the Dow was climbing 
steadily from 8^50. Now, no 
one is quite so sure, and with 
many buyers likely to stay on 
the sidelines, at least until the 
May FOMC meeting, both bond 
and stock markets could be to 
for farther declines. 

A renewal of uncertainty 
was also troubling investors in 
Philip Morris this week. Trad- 
ing In the stock was suspended 
for Wednesday while the Phil- 
lip Morris board discussed the 
pros and cons of separating 
the company's food and 
toDacoo interests. 

In recent months specula- 
tion that the company would 
split in half has beat provid- 
ing Philip Morris' shares with 
much-needed s u ppor t at a time 
when cigarette manufact ur ers 
were under fierce fire from 
anti-smoking forces in Con- 


gress and across the US, 

The speculation, however, 
proved aff-tfae-mark, because 
after the board meeting, Philip 
Morris announced that a deci- 
sion on whether to split the 
company’s two main busi- 
nesses would not be taken “for 
the foreseeable future." 

Disappointment at the move 
sent Philip Morris shares tum- 
bling when trading in the 
stock reopened cm Thursday. 
Investors were unhappy 
because the company started 
the speculation earlier this 
year when It revealed a 
break-up was being consid- 
ered. 

Many analysts, however, 
believe the board’s decision 
was primarily intended to bay 
some time, and that a division 
of the businesses is still the 
only way Philip Morris can 
protect its food operations 
from the problems afflicting 
the company’s tobacco inter- 
ests. 

Patrick Harverson 

Monday 3742.41- 23JM 

Tuesday 3746.17+ 02.76 

Wednesday 3755^0 + 10.18 

Thursday 3753.46 - 01A4 

Friday 


The Bottom Line 

Another price cut at 


Marks and Spencer 

Share price relative to the FT-SE-A AR-Shara index 



80 1 1 L 1 _i 

1990 91 92 93 94 


K nocking l2'/ip off 
Marks and Spen- 
cer’s share price on 
the day it 
anno unced a 16 per cent rise in 
profits to £85 lm, extending its 
lead as the UK's most profit- 
able retailer, must rank as one 
of the stock market's more 
churlish reactions. 

Sir Richard Greenbury, 
Marks' pugnacious chairman, 
found it difficult to conceal his 
Irritation - perhaps under- 
standably. By any standards, 
the company’s performance In 
the year to March was Impres- 
sive. Group turnover increased 
10 per cent to £6J54bn, with 
operating p ro fi t s up 18 per cent 
to £873-4m. In the UK, sales 
grew 9.5 per cent to £5.48bn, 
and operating profits 18 per 
cent to £810m. 

Leaving aside the perennial 
trouble spot of Canada, the 
overseas businesses all 
Increased sales and profits, 
except continental Europe 
where profits fell slightly. 

In the UK. M&S has 
achieved such results by offer- 
ing outstanding value for 
money. Cost savings through 
improvements in efficiency 
and information technology 


were passed on to customers in 
lower prices, but without dam- 
aging the operating margin - 
which at 14 per cent is a figure 
other clothing and food retail- 
ers only dream about 

The increased volumes that 
resulted meant Marks and 
Spencer could put more busi- 
ness through its suppliers’ fac- 
tories, and so get even better 
deals out of them. 

Sir Richard says M&S has 
also improved the “desirability 
and fashionability" of its prod- 
ucts - something attested to in 
recent features in the fashion 
aqd national press. 

There is, moreover, ample 
scope for growth. M&S 
announced on Tuesday it 
would spend £lbn on expan- 
sion over three years. 

While it is already repre- 
sented to most UK locations 
where it wants to be, M&S 
says many existing town-cen- 
tre stores are too small to 


Soyrtsa: DBiMtreaai 

cany the full range, and it will 
extend them where possible. 

In financial services, where 
profits rose 40 per cent, M&S 
has announced a move into the 
pensions market. 

Even more exciting in the 
long-term are opportunities 
overseas. In continental 


Europe, where turnover 
reached £243m last year, the 
focus will be France and Spain. 
The recession there has not 
helped the bottom line, but 
makes it a good time to be 
investing in property. 

Sir Richard says he expected 
developing the continental 


M&S 


European business to be his 
main task as chairman But 
the outstanding success of 
Marks' ventures in east Asia, 
especially Hong Kong, has 
forced him to take a closer 
interest in that region. 

The company is being wooed 
by the Chinese government 
and by Japanese manufactur- 
ers. Both offer huge possibili- 
ties: China a market of lbn 
people; Japan a clothing mar- 
ket four times the value of the 
UK's. The Japanese, says Sir 
Richard, are quality-conscious 
but are looking for retailers 
who can supply at a lower 
price than the designer labels 
that dominate the market 

The company's experience in 
the US and Canada shows that 
not everything it touches turns 
to gold, at least not immedi- 
ately. Brooks Bros in the US is 
improving, but still makes a 
smaller return on sales than 
the rest of the group. 


But there is a fading among 
retail analysts that when it 
goes into China and Japan. 
M&S will get tt right 

So why did the shares fan? 
One reason is that profits were 
slightly smaller than forecast, 
due to an unexpected £l6m 
increase in pension costs. 
Another Is a warning that cost 
inflation could re-emerge this 
year, although the company 
said, perhaps justifiably, that it 
was better placed to absorb 
this than Its competitors. 

An underlying reason for the 
toll was investors switching 
from M&S into Burton, which 
they believe offers bigger 
short-term growth opportuni- 
ties if Its recovery programme 
starts to bear fruit. 

That, however, is a big tt 
M&s, on the other has 
lifted earnings per share 62 per 
cent and dividends 54 per cent 
in five years. 

For a more exciting, «?»ri pos- 
sibly bumpy, ride, jump into 
Burton, or even Storehouse. 
For a more sedate, but perhaps 
ultimately more rewarding, 
journey, stay aboard Marks 
and Spencer. ■ ■ 

Neil Buckley 




• • 'usss 



->j 


FPjAKgAL TIMES WEEKEND MAY 28/M A V ,ao. 


WEEKEND FT III 


FINANCE AND THE FAMILY 


Building 
the right 
portfolio 

Gillian O’Connor delves into the 
ingredients for investment success 


I magine an Investment 
portfolio made up of 
shares in et o ety l ny stock 
markets, European priva- 
tisation stocks, small compa- 
nies, and securities producing 
aw ultra- high income. That is 
roughly the portfolio you 
would have if yon had pot 
money into a cross-section of 
the latest unit and investment 
trust launc h es. 

It is an exceedingly high risk 
mixture. It is also very nnlflcn 
the portfolio you would have if 
your money was managed by 
the private client department 
of most leading fund manage- 
ment firms, which usually 
work on a fairly conventional 
asset allocation model. In other 
words, they first divide your 
money between cash, bonds 
mid equities; then they divide 
the equity money between the 
major stock markets or eco- 
nomic blocs. 

Many firms have more »>»«w 
one type of model, since clients 
differ. An income-orientated 
investor would, for example, 
probably have more bonds and 
a small or non-existent stake in 
emerging markets. But all the 
firms emphasise that any pro- 
totype will be modified to suit 
the specific needs, attitudes 
and existing portfolios of indi- 
vidual customers. 

There are niftier variations 
both, in w hat the firms think 
clients want and how they aim 
to achieve it. GAM (Global 
Asset Management) argues 
that the first priority for most 
of its clients is to avoid losing 
money; they would also like 
long-term capital growth 
roughly in line with that of 
equities, but that objective 
comes second. 

Kleinworfs prime objective 
Is to mainfapn the real (infla- 
tion-adjusted) value of the cli- 
ents’ assets. Its “benchmarks” 
(see table) show how portfolios 


for various types of investor 
would be split if shxk m a rket s 
were expected to be relatively 
stable both in themselves aM 
in relation to each other. In 
practice, tactical consider- 
ations mean that the actual 
portfolios often are very differ- 
ent from the benchmarks. 

Take, far example, its most 
aggressive portfolio: the bench- 
mark version is 20 per cent 
bonds and 80 per cent equities. 
And the equities are in the 
UK, with the remainder 
equally split between Europe, 
the US, Japan and south-east 
Asia. Today, that portfolio has 
no bonds and is nearly 98 per 
cent invested in equities, with 
the UK and emerging markets 
getting most of the extra. 

Markets as turbulent as the 
current ones can cause some 
fairly radical rethinks. Early in 
March, for example, the more 
dynamic BZW portfolio model 
had 12 per cent in each of the 
US, Europe and Japan. This 
week the actual allocation had 
6 per cent in the US, nothing in 
the other two, and over a third 
in bonds and wwti. 

Generally, there is a fair con- 
sensus on where to put inves- 
tors’ money. Our asset alloca- 
tion table shows the latest 
snapshot from a range of dif- 
ferent friwH niflnaj yq* 

We stipulated that we were 
interested in portfolio splits 
suitable for a Ghent resident in 
the UK with at least £260,000 to 
invest Where managers have 
several basic models, we have 
picked the most comparable. 

These are middle ctf the road 
portfolios, aiming for moderate 
growth and suitable for some- 
one willing to take some risk: 
too cautious for a 35-year-old 
with no worries but too risky 
for many older investors 
approaching retirement 
How helpful, though, are 
these models to the investor 




— - 1 

POSSIBLE PORTFOLIO BENCHMARKS (%) 

PRIVATE CLIENT ASSET ALLOCATION (%) 


Asset type 


Growth 


Balanced 


Income 


Index -linked gits 
Conventional rate 
UK Equities 
Overseas Equities 


20 

15 

- 

- 

10 

30 

40 

45 

50 

40 

30 

20 


SoufCBMataHort Bmon Mtt CM IMunU 


who manages his own money? 
They can be useful if hanrnud 
with care, but there are several 
points to bear in mind when 
nsmg thgffl as a yardstick: 

■ They are blueprints only. 
The fund managers all empha- 
sise that they have several cli- 
ents whose portfolios are very 
different from the models 
because their needs, objectives 
and characters do not fit the 
stereotype. And factors such as 
potential gains tax liabilities 
can complicate the situation. 

Many investors find them- 
selves effectively locked into 
most of their existing holdings 
because a major overhaul 
would land them with an enor- 
mous galnw tax hitl- Fn such 
cases, any model portfolio is 
simply a target to work 
towards at your own pace. 

■ These portfolios assume that 
you have at least £250,000 with 
no obvious claims an it If you 
have known future commit- 
ments, such as school feed or a 


mortgage to pay oS, you need 
to allocate specific resources to 
meet those liabilities. 

■ They agcirmp that you win 

afford to take at least a three 
to five year view; they are not 
suitable if you might need your 
money bade before that This 
caveat applies even to the cash 
in some portfolios. Make sure 
you have enough of that 
elsewhere for your everyday 
needs. 

■ They are, deliberately, broad 
brush. Several of our fond 
manager sample, for ex am ple, 
are particularly enth usias tic 
about shares in gmaner compa- 
nies, but we have not subdi- 
vided the totals. 

■ Choosing the right shares 
can matter as much to the suc- 
cess of your portfolio as 
choosing the right areas in 
which to invest Indeed, seme 
of the most successful inves- 
tors are pure stock-pickers. 

If yon stffl want to run a 
portfolio spread as widely as 


Asa* typo 

BZW 

MAM 

VUnsdaBras 

NainMMt 

QAM 

Cash 

1&2 

3 

3.75 

- 

15 

Bonds 

20 

9 

3.75 

7 

2 A 

Conventional 

10 

6 

- 

42 

- 

IndoxSnkBd 

10 

3 

3.75 

2.8 

- 

Other 

- 

- 

- 

- 

2.4 

Equitim 

63 a 

88 

9SL5 

83 

B2.6 

UK 

47.7 

63 

57.5 

53.8 

16 

US 

6.1 

6 

5 

69 

6 

Europe 

- 

9 

7.5 

&T 

30.6 

Japan 

- 

4 

5 

7.5 

15 

Other 

10 

6 

7.5 

9.7 

15 

Stxrctt Fdnd rmnaQormnt house*. Data otsaocsOon t*ta May 1394 


our models, how do you do it? 
As we have pointed out, active 
dealing normally should be 
avoided. 

The costs of buying and sell- 
ing a share (see page VIE) are 
likely to amount to nearly 5 
per cent for a UK blue chip and 
more for a small company, 
most foreign shares and for 
many unit trusts. Indeed, War- 
ren Buffett, the American 
investment guru, urges you to 
thtnk of dealing costs as an 
extra tax on your profits. 

The obvious Implication is 
that it is self-defeating to fine- 
tune your portfolio too often. 
Start with a broad idea of the 
overall shape, knowing that 
you cannot afford to change it 
in response to every minor 

market Hifl wjment 


Should you invest directly in 
individual shares, or through 
unit and investm en t trusts? 
This is an open question as far 
as the UK portion of your port- 
folio Is concerned. If you have 
the time, knowledge and incli- 
nation, direct investment is 
probably more fun. An alterna- 
tive is to put most of your 
money Into a cost-effective 
index-tracking fund (page IQ, 
Weekend FT , April 30) and run 
a much smaller portfolio of 
shares for your own amuse- 
ment When It comes to invest- 
ing overseas, most people will 
sensibly opt for ftmds. 

* Barclays de Zoete Wedd, Mer- 
cury Asset Management, Wil- 
liams de Broe, Klemwort Ben- 
son Investment Management, 
and Global Asset Management. 


Chunnel 


• 0 


visions 


Hast SurotuniMf famm m good Mbit 

Rabssod to Euttunml share prim 
1200 


• Buraumd 

> FT- 8 E-A AJMBhm fctdaa 

1 m 

> tMaWW/KCwn 





T he tight at the end of 
Eurotunnel means 
that those who 
bought shares In 
November 1987 for the travel 
perks they offered will soon be 
able to make their free trips. 
But was it worthwhile? 

The Hming of the original 
offer was not good, coming 
right alter the stock market 
crash. To lure private inves- 
tors. shares were offered at 
350p with these concessions: 

100 shares: one free trip 
through the Channel within a 
year of its opening. 

■ 500 shares: one return trip 
year for 10 years. 

1,000 shares: two return 
journeys every year until the 
end of Eurotunnel’s concession 
(originally 2042 bat extended 
last December to 2052). 

1,500 shares: as many trips 
as you like mxtn 2052 . 

To benefit, shareholders 
most pay an annual registra- 
tion foe of £15 and a £2 nomi- 
nal charge for each journey. 

The chart, re-based to 350, 
shows how the Eurotunnel 
shares have performed in rela- 
tion to the FT-SE-A All Share 
index (gross dividends re-in- 
vested) and a 90-day Halifax 
building society account (gross 
income re-invested). 

In feet, investors who have 
held on to their shares have 
done better than the options, 
fie turn fares on Le Shuttle 
range from £220 to £810, 
depending on the time of year 
the trip is made. If yon had 
paid £350 to qualify for one 
return journey in the first 


year, and wanted to travel in 
the mast expensive period, yon 
would have benefited to the 
tune of £327, allowing you to 
make another free trip. 

The calculation assumes 
that Eurotunnel's price bolds 
at Thursday’s dose of 348p. 
So, yon would have paid £350 
and got back £348. 

There was a rights Issue in 
1990. If you had not taken it 
up, the value of the nil-paid 
shares would amount to £35 
for someone bolding 100. 
Thns, you made a “profit” of 
£33 and got a trip worth £310. 
Since you have to pay a fur- 
ther £16 for the journey, your 
total gain is £327. 

You would have done less 
well by Investing in a share 
matching the performance of 
the All Share. Although the 
market has done well, turning 
£350 into £875, paying for the 
£310 trip leaves a £215 gain. 

The buQdlng society inves- 
tor would have made £221 by 
depositing £350 and getting 
bade £571. But forking out for 
the £310 fare means he is out 
of pocket by £89. 

Given the volatility of the 
Eurotunnel share price, share- 
holders cannot do their sums 
until after their journey. The 
wiliest would have sold their 
shares when the price reached 
a high of £11.64 in 1989. With 
£810 profit tn band, they could 
have bought a round-the-world 
airline ticket. 

Scheherazade 

Daneshkhu 



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GOVETT ORIENTAL INVESTMENT TRUST PLC 



GOVETT 

ORIENTAL 

INVESTMENT TRUST PLC 


“A VERY GOOD YEAR BY ALMOST ANY MEASURE” 

The Trust aims to achieve capital growth, principally through investment in the Far East 


Net Asset Value Up 52% 


The First Investment Trust 
To Benefit Shareholders 
By Recommending a 
Foreign Income Dividend 


RESULTS TO = 

Ust MARCH 1994 


1 994 

Change 
on 1993 

Net Asser Value 
per Share 

397.6 p 

+52.0% 

Ordinary Share 

Price 

354.0p 

+57.0% 

Dividend per 

Share* 

1.15p 

+21.1% 

Total Resources 

£760.9m 

+48.6% 


'A find dividend of 0.75p hat been recommended a a Foreign Income Dividend 


Commenting on these impressive results. Chairman, Mark Comwall-Jones said: 

“The Trust has enjoyed another very good year by almost any 
measure. Last year I was able to report an increase in net asset value 
per share of 38%; this year the rise has been 52% to 398p with a 
commensurate rise in the share price.” 


The Annual General Meeting will be held at Painters Hall at 12 o’dock on 28ch June, 

Copies of die Report and Accounts are available from John Coven fit Co. Limited. Shaddeton House, 
4 Battle Bridge Lane. London SEl 2HR. TeL (071) 378 7979. 











Directors’ transactions 

Flat market 
hits balance 


DIRECTORS’ SHARE TRANSACTIONS M THEIR 

OWN COMPANIES (LISTED A USM) 





No of 

Company 

doctor 

Oharas 

Value 

dfrectora 

SALES 





Brittah Petroleum 

00 

87500 

352 

1* 

E’burgh Fund Mgnra _ 

OthF 

27,000 

163 

1 

Gnosvanor Inns 

Brew 

19,351 

28 

1 

Incfl Ctrl Services 

paras 

325.000 

488 

1 

RecMtt & Coleman 

HseG 

3,600 

24 

1 

RTZ . 

EJdn 

115,690 

990 

1* 

Sairobury (J) _ 

RetF 

8,000 

31 

1 

Scottish Nat. 0nc} 

InvT 

500.000 

510 

1 

Savarflekt-Rseve 

BCon 

110,000 

68 

1 


RetF 

126^50 

296 

1* 


HseG 

3,970 

11 

1 

Wholesale Fittings 

... _Dtst 

585,000 

1,784 

1 

WBson Bowden 

BCon 

152^37 

665 

2* 

Whamptnn & Ducfiay _ 

Brew 

5,000 

28 

1 

PURCHASES 





Banr&WAT 

L&HI 

4,000 

24 

1 

Berry Birch & Noble OthF 

27,600 

35 

1 

Clarke NlckoBs 

Prop 

115,000 

27 

3 

Cterteon (Horace) 

Thai 

20,000 

16 

1 

Cook (DC) HobSngs _. 

DW 

200.000 

82 

1 

Dewhtrat Group 

Text 

50,000 

59 

1 

Johnston Group 

BM&M 

12^00 

31 

1 

Mithras kw Trust 

InvT 

300,000 

151 

1 

Princedde Group 

Mcfia 

250,000 

58 

T 

Provident Financial 

OthF 

4,000 

18 

1 

Royal Douiton _ 

HwQ 

11,714 

29 

1 

Standard Chartered 

Bnks 

106,797 

289 

1 

TLS Range 

Diet 

100,000 

31 

1 

WaSams HkJgs 

DM 

10,000 

37 

1 


Value esprasaod In £000s. Thfe 1st contains al transactions, tadudng the Bcardse at 
optfona n V 100% subsequently SOM, wfm a veto over 00,000. tafton a M on ret— lad by 
the Stock Bcch—ge 16-20 May 1994. 

Sara Dfeoctus Ltd. The Inakto tads. Ednbratfi 


With the market ending up tiat 
during the week reviewed here, 
it seems only just that there 
should be a roughly equal bal- 
ance between the number of 
buys and sells over the period. 
□ Wholesale fittings, the fun- 
ny-orientated distributor of 
electrical goods and compo- 
nents, has bad a strong recov- 
ery srnng its trough in Septem- 
ber 1992. At that thne, joint 
managing director Richard 
Rose bought two tranches of 
stock, each of 50,000 shares, at 
prices ranging between 153p 
and 16%. The latest sale by 
Lennard Rose, the other joint 
managing director, was of 
585,000 shares at 30%. Richard 
Rose also took profits recently 
by selling 60,000 shares at 331p. 
Final results are due in August 
and brokers forecast namings 
of lL8p, which gives rise to an 
aboveaverage prospective p/e. 
O Sir Michael Bishop is known 
better as chairman of British 


Midland, the airline company, 
but he is a lso a nonexecutive 
director of WHfiams Holdings, 
an industrial conglomerate. He 
has bought 10,000 W illiams * 
shares at 369p, his first pur- 
chase of threw. The last signifi- 
cant purchase by any of bis 
fellow directors was in Febru- 
ary 1902 When chairman Nigel 
Rudd bought 60,000 at 311p. 

□ W illiam Richar ds is a non- 
executive director of Industrial 
Controls Services, quoted 
under the electronic and elec- 
trical equipment sector. He has 
sold 325,000 shares at 150p. 
leaving him with a holding of 
2.1m. Announcing interim 
results at the end of February, 
thp. chairman indicated that 
the order book looked encour- 
aging. The consensus earning s 
forecast is for 9.% in the year 
to end-May 1994, rising to 12JLp 
for the following year. 

Cohn Rogers, 
The Inside Track 


P redictions erf th«» immi- 
nent demise of the 
new issue market may 
have been exagger- 
ated, but it has certainly been 
looking pretty rick lately. Sev- 
eral flotations were pulled at 
fhp last mmnftwt and the fall in 

the stock market dragged more 
new issues below their offer 
prices. Yet, there is still a 
queue of hopefuls waiting to 
offer shares to investors who, 
dearly, have bad their fill. 

In order to get the issues 
away, many vendors are seeing 
the price of their shares cut 
back savagely. Even then, few 
go to a decent premium on 
first dwallwg a. 

In these circumstances, it 
might seem wise for private 
investors to avoid new issues 
altogether, or at least wait to 
see what happens when the 
shares start trading. 

For the brave, it is the flops 
that sometimes offer the best 
value. “When an issue flops, 
investors try to damp stock - 
which drives the price down 
further," says one private cli- 
ent broker. “The shares t he" 
tend to rit around, friend-less, 
like damaged goods on the 
shelf.” 

Sometimes, there is a good 
reason why investors spurned 
the shares initially . But shares 


Sick - but not terminal 

David Wighton on the rocky state of the new issues market 



Becking the flops 



Ooupmtr 

tame 

prim 

Prim star 
week 

Prim 

25/3/M 

tale egrint 
FTMStaaa 

Avonskto 

10% 

1Q2^p 

13% 

4-42% 

Qrosvsnor Inns 

IQSp 

91P 

l3Sp 

+26.1% 

Kenwood 

28% 

279p 

340p 

-4.2% 

Telegraph 

32Sp 

2S8p 

553p 

+448% 

AngBsn Group 

21 Op 

202p 

244p 

-05% 

RJB Mining 

25% 

239p 

350p 

+36^% 

Megan 

110p 

92p 

74p 

-24.7% 

Court Cavendish 

22% 

197p 

23% 

+iao% 

Cantab Pharma 

460p 

455p 

462p 

+3.9% 

Charles Sidney 

110p 

104p 

117p 

+132% 

Canadtan Pizza 

200p 

192p 

107p 

-440% 

LUbput 

135p 

126p 

108p 

-11X)% 

ranchurch Gp 

IBOp 

17Bp 

152p 

-11.1% 

CeBtach 

250p 

225p 

201 p 

-47% 

Ave-+2.1% 


MBMUng' 

Stan price (panes) 
■ •460 



250 




in sound companies can be 
depressed artificially for same 
Hwc after a dis appoin ting flo- 
tation. 

The table lists all those new 
issues, excluding investment 
trusts, launched in 1992 and 
1993 that fell to a discount 
within a week of the start of 
dealing s It then shows the 
gain or loss, relative to the AH 
Share today, had you bought 


thorn at that price ?nri hft )ri 
them imtfl now. 

They range from the pretty 
disastrous (Canadian Pina) to 
the highly successful (the Tele- 
graph and RJB Mining}. On 
average, the 14 stocks have 
slightly outperformed the mar- 
ket 

This result needs to be 
treated with some caution. For 
a start, most of the 14 are small 


companies which, as a class, 
outpaced the index comfort- 
ably over the period. 

Yet, it does serve to 111ns- 
trafce that quality ftrenpaniftfl — 
such as tiie Telegraph - which 
chose a poor time to float, or in 
some way fail to catch the 
mood of the inrun pint, can be 
picked up cheaply if they get 
off to a bad start 

The Telegraph came to the 


market In the summer of 1992 
when a sudden finny of medi- 
um-sized flotations ted to dis- 
appointing debuts by some 
very companies, includ- 
ing MFI, Kenwood, end 
Anglian Group. En that sense, 
it had some similarities with 
the present 

K should be noted, however, 
that white the Telegraph has 
gone to a handsome premium 


and MFI has outperformed the 
market modestly, Kenwood 
and Anglian both have lagged. 

Of course, sometimes the 
market gets It exactly right. 
When Ca n a di a n Pizza floated 
in November, investors were 
wary of the price demanded for 
a one-product company with a 
few large supermarket custom- 
ers such as J. Salnsbury. 
Whan, last month, Sainsburys 
decided to stop buying the 
company’s pta crest for its 
delicatessens, the shares turn* 
bled. 

Issuing a profits warning 
shortly after flotation is just 
not done and offenders get 
treated very harshly by the 
market Shares in both United 
Canters and Cementnne took 
bad knocks last week when 
they admitted trading was 
below expectations. 

XT the trading problem proves 
only temporary, as it did in the 
case of Holliday Chemical last 
year, those brave souls who 
boy on the warning can pick 
up real ba r g ai ns. But, all too 
often, an early profits warning 
is the start of a slippery slope. 

Aa always, the key to suc- 
cessful equity Investment Is 
being selective. When ft comes 
to picking the top of the flops, 
more than usual caution Ls 
required. 


Be La Rue, the bank note 
printer winch ended bid talks 
with. Portals yesterday, is 
expected to report strong prof- 
its growth when it anmnrarret 
its foil-year figures on Tues- 
day. Pre-tax profits of around 
£12Zin are expected, up from 
£1 04.7m the previous year. 

□ The shar e price of Beazer 
Homes, which closed last night 

at 15%, ftmudahmtly imrier - 

performed the issue price of 
165p since the ftnmpany was 
floated in March. The next test 
for the shares will be on Tues- 
day when the company is due 
to announce figures for the six 
month s to the end of March. 

Forecasts have been made 
more difficult by the 
company’s decision to change 
its year-end, hut the market 
appears to be expecting pre-tax 
profits of guftn for the first six 
months , rising to £30m after 

nine. 

□ Northern Ireland Electric- 
ity, the last of the UK power 
companies to be privatised, is 
expected to announce 1994 pre- 
tax profits of about vfti-m on 
Wednesday, a sharp improve- 


The week ahead 


memt on thp £58m of 1992-93. 
The dividend payment is likely 
to be about lL3p, against 
KL02p last time. 

□ The City is expecting consid- 
erable growth and expansion 
when Granada, the leisure, 
television and computer ser- 
vices group, reports its results 
for the 26 weeks to April 2 on 
Wednesday. Last time, before 
the takeover of London Week- 
end Television, Granada had 
pre-tax profits erf £68zn. 

This time, analysts are 
expecting between £90m and 
annm - which would be a con- 
siderable achievement given 
that little more than a month’s 
profits will be included for 
LWT. 

□ Yorkshire Water, the third 
of the big 10 water companies 
to report finds this year, is 
expected to show an advance 
from £137m to about £L44m on 
Thursday. But profits are 
likely to be depressed by a 
restructuring charge of £L0m, 
arising largely from cost-cut- 
ting measures in the core util- 
ity business. Analysts are 
expecting the dividend to be 


EXCELLENT 
RESULTS FROM 
MONKS 

Net Asset Value up 25.3%* 
Dividend Grows By 4.5%* 

The preliminary unaudited annual results of THE MONKS 
INVESTMENT TRUST PLC show the net asset value rising by 
25.3%, compared to a rise of 13.5% in the FT World Index* 

The net dividend has grown as well from 6.7 p last year to 7.0 p* 

You can invest through the commission- free Investment 
Trust Savings Scheme or through the low-cost PER 

For further information please complete the coupon below 
or telephone 031 222 4244. 

Past performance is not necessarily a guide to future per- 
formance, and changes in currency exchange rates may cause 
the investment to fall or rise. Tax reliefs on the PEP are those 
currently applicable and may change. The value of any tax relief 
depends on personal circ umstan ces. 



Baillie Gifford & Co 

Scotland's Largest Independent Investment Managers 
Member of tMAO 


Phone 031 222 4244 (office hours), 

Fax 031 222 4299 (any time) or post this cou p on 

To: Lindsey Got ig Baillie Gifford Savings Management T-rW 
1 Rutland Court, Edinburgh EH3 8EY. 

Please send me de tails on 

the Investment Trust Savings Scheme and Monks □ 
the PEP and Monks 0. 

IT yoo do not wWi n Keans mTanniboa oa oOer pndoca <« jentea br «Dd«a wi otf 

audited eMnpttapieBC act Ac b« □ Yoor am a ne w ^ 


n 


Mt/Mn/Mai 


AMw 


Post c od e 


Baillie Ciflbnl S aritev U«t ewBohccf IMRQ Bulb, Gjflocd Sirlog ** — nj i 

ofifcc Baflhc GBEnd bmwcTlw Stfeoac ind He » wfccfly oawd nriidrtmy of Bi6Ba agate* Co 

* Source for all figures: Monks Animal Report announcement 1994 


Stare prioc rotative to the 
FT-SE-AAS-ShamtrKtoc • 



1890 91 82 8X 94 

SoucKDtfHtrawn .. 

pitched at between. 22 and 23p. 

□ Boots, the retailing and 
pharmaceuticals group, is 
expected to nnmpiftte the latest 
round of retailers’ results on 
Thursday with an increase in 
pre-tax profits from £406.7m to 
about £460m before £35m 
exceptional charges for the 
withdrawal of the Manoplax 
heart drug. 

□ MEPC, Ihe UK’s second-larg- 
est property company, is likely 
to announce a small ripriton in 
its profits when it announces 
results on Thursday. Analysts 
expect pre-tax figures of about 
£50m far the six months to end- 
March, compared with £S2£m, 
for the same period last year. 

The company’s profits will 
be affected by the loss of rent 
from disposals made in 1992 
and 1993, and a dedme in the 
amount of interest capitalised, 
altho ugh it mig ht benefit ft tan 
the ending of some of the rent- 
free periods given, to tenants in 
recent years. 


Shares in London Clubs 
International, owner of the 
Rite Club five other Lon- 
don casinos, look a safe bet at 
the flotation price of 200p, 
unites David Blackw el l. The 
group, which will have a mar- 
ket capitalisation of £14Z.4m, 
is raising about £27.5m net of 
expenses to pay off bank debt 
incurred under the 1989 man- 
agement buy-out from Grand 
Metropolitan. 

ftmniri Montagu, which has 
underwritten the issue ftdty, is 
placing 16.38m ordinary 
shares with institutions, of 
which 4.09m wfll be subject to 
a clawback to meet retail 
de mand through intermedi- 
aries. Broker is James CapeL 

The gr ou p will be quoted on 
the USM because the manage- 
ment has only two years' expe- 
rience of the company and 
stock exchange rales require 
three years. The change of 
management followed a police 
raid in 1991 under the Gaming 
Act, just days before a previ- 
ous plwiiwH flotation. 

The issue was priced to go 
even in the week which saw 
the stock market well down 
and the announcement of the 
National Lottery winner. The 
strong portfolio of casinos, 
from the high-rolling Ritz to 
the Golden Nugget, reduces 
the risk of relying for profits 
on a few- high-spenders. 

The prospectus puts pro 
forma pre-tax profits at fc23.\m 
for 1993-94, and earnings per 
share, before restructuring 
casts of £2m, at 2&£p, giving a 
multiple of 84. A dividend of 
lL92p would have been recom- 


RBSULTS DUE 


DMdend W* 


Oampmsr 

Vaotor 

Amcait 

dua 

Last 

yanr 

TNayear 

tat. 

tat. 

M 

nuL iwnaw 






Acorn Oowpufer - 

_sre 

Mday 


. 

- 

Antfo Amvricm 

— nft 

WniVnerltoi 

TTtaAAwaMtf 

- 

- 

“ 

Artier 

— Bdfcta 

Vtoteeaday 

- 

- 

- 

BvtagUMEaro 

— nfa 

Mdar 

- 

“ 

• 

Bwtonf^fcflngv 

— -OtSv 

Thuvrtay 

- 

28 

- 

Boote 

— ReGn 

Uuadsy 

48 

88 

48 

BorararScke 

— F*flAa 

Wateaoday 

05 

07 

08 

BouWwd 

— EngV 

Friday 

035 

035 

- 


— r/n 

Wednesday 

- 

- 

“ 

ChnW 

as 


- 

18 

- 


PPSP 

need* 

386 

13.1 

68 

[ Drayton Engirt A Ind That tnTV 

Ttuacfy 

08 

08 

04 


InTr 

Friday 

“ 

• 

“ 

Hrtbro Insurance 

— .0B=n 

Uusday 

48 

“ 

185 



Friday 

- 

- 

- 

K ■ 

—SpSv 

Thursday 

025 

185 

Q85 

Ketnbry — , ■■■_ 

n/a 

Wednaaday 

- 

- 

- 

Koran Aria Rnd 

__nfc 

Thuraday 

“ 

“ 

- 

Londoo tn* MU trirTrast — 

Ins 

Thurad^y 

“ 

“ 

- 

Md Kant 


Thusday 

475 

5.75 

58 

Nortbem fcWand Qootrtcfty — 

Bsc 

Weteeaday 

- 

- 

389 

Qun*rtt- — 

— LAH 

Thursday 

- 

- 

- 


_JW 

Tuesday 

28 

58 

28 

PmnBOAyn — 

Dvln 

Thunday 

68 

168 

68 

Proparty PartmwrtTp 

—Prop 

Friday 

- 

- 

. 

Radvtone Tvctoolooy 

nfo 

Friday 

- 

- 

- 

Ramco OB - 

—ME 

"KWD3S T 

- 

18 

- 

RU Capmi Partnara 

—Inn 

Thursday 

. 

1.15 

. 

Rote* Natal 

— SpSv 

Thusdsy 

285 

4m 

2805 

1 Hw»e Erane fnwtinwm OtSv 

Thusrday 

. 

28 

. 

State 

— Eng 

TTusday 

13Z7 

8872 

386 

SfceteWoy 

-SpSv 

Tuesday 

18 

28 

18 

Union Intametfanal 

—n/a 

Thuarday 

- 

- 


vsa. 

—Eng 

Thwsday 

98 

200 

105 

Wyndehan Rw 

— PPM* 

THasday 

050 

075 

076 

YoriohirB Water 

— W 

Triuraday 

7.05 

142 

78 

KTW pawn 






Atertean Thimt 

—Otftl 

Wednesday 

08 

18 

. 


—out 

Ttasday 

1-25 

281 

• 


H Art 

Friday 

12 5 

1.76 

- 


oar* 

_ tXRj 

Tuesday 

- 

• 

- 

CartE IMng _ 

_ FdMa 

TTusday 

18 

13 

- 

CemraiTaeii 

_ESS 

Tlusday 

286 

5.15 

. 

Forrisn & Cotonial Pff Inr. _ 

biTr 

Tuesday 

09 

28 

- 


kiTr 

Tuesday* 

- 

. 

_ 

Granada 

— LSH 

Wednesday 

3825 

5.726 

- 

Loafcen 

— 0 1st 

Wechesday 

28 

48 

. 

MsnaldB Kokfeipa 

_ hTr 

Thuraday 

- 

- 

- 

MffC 

—Prop 

Thursday 

5-25 

14.75 


SperaUfCAl 

— SpSv 

Wednesday 

- 

- 

. 

Stakb 

-LSH 

Thursday 

045 

OS5 

. 

Sturo# 

— Ins 

Wednesday 

18 

28 

- 


■DhBends are sham net panes pr dn and an actuated lor any haareatong scrip haw. 
Repote and kcoms ae not nomnJy rotate urtl rtout 6 wads alter Bn boon! meeting to 
apprtsv* pm&nktaiy rwuta.8 1st quarterly. f 2nd quarteriy. * M Quarterly 


TAKE-OVER BIOS AND MERGERS 


Comply 

DM far 

value or 

DU pa 
rtM- 

Marks! 

pricer- 

Pries 

betas 

uo 

VMM 

at tad 
Dm- 

BUtor 


Prices n» ponce n*«a oOurmkjv hdevtad 


Braden Props. 

io- 

10H 

15 

3.70 

Slough Estates 

Clayton, Son 

128* 

127 

117 

380 


Empa Mns 

RS 9 

57 

- 

16.00 

Bwralne 

Hogg Group ? 

255* 

2S7 

234 

17060 


In Shops { 

116 

115 

83 

5986 

Btrtdiy 

Joaaupa 

140 

128 

98 

1400 

BSQ 

LA3MO 

ISO 

146 

762W 

ifioao 

Enterprise 06 

Ltaread 

228 

213 

153 

27.80 

McKsetsrie 

Itaprtm Into 

164 

IBS 

173 

41.79 

Cferanent 

MW 

V05§ 

IS 

IS 

121.00 

Britten 

Wtorapnnrr Pub-t 

355- 

350 

350 

7B.00 

BCON Conaonhan 

SpnrH-VII 

900* 

740 

740 

4090 

Hasbro . 

SnuBtorn Radto 

115* 

116 

93 

32.60 

Copitat Undo 

James WBoes 

160 

161 

160 

23.40 

Dm nw 

Star 


New issues 


mended, giving a high yield of 
7.45 per cent. 

□ Argent Group Is the latest 
of a wave of property compa- 
nies to seek a listing. Private 
investors can subscribe 
through an intermediaries 
offer at 95% a share, writes 
Vanessa Boulder. 

Argent, framed 12 years ago 
by joint ddri e x ee ntivas Mich- 
ael and Frier Freeman, owns 
16 in vest me n t properties val- 
ued at £1 97.1m. It also owns a 
development site in central 
Bi rmingham, with planning 
consent for l.lm sq ft of 
offices, valued at £2&6m. 

Argent is braving the mar- 
ket at a time when investors 
are anreceptive to new issues 
and, in particular, new issues 
of property companies - as 
demonstrated by the polled 


flotation of London Capital 
ffmiiHnga Mifa week. 

Argent has priced its shares 
aggressively, at a discount of 
just 5 per emit to its net asset 
value. If turbulent stock mar- 
ket conditions persist, private 
investors might do better to 
pickup stock in the aftermar- 
ket rather than teka up the 
offer. 

The company is tipped to 
perform well In the longer 
term, however; it has good- 
quality investment p roperties 
and an interesting develop- 
ment programme. The offer is 
sponsored by Schraders. Appli- 
cations under the intermedi- 
aries offer must be made on an 
application farm provided by 
Caxenove, the broker, and 
must be sent to Caxenove by 
midday an Jane 3. 


PRELMNAIIY RESULTS 




M 


Mbs 

9S Itor 

7J3B0 

P85q 12.11 

(888 

68 

1488) 

AwiOrp 

RaRI A|r 

981800 


228 

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113 

0<u? 


Text A(r 

252 L 

(MS) 

. 

(B8Q 

61 

(78R 

BET 

Spar Apr 

62800 

8800 y 

68 

H 

338 

(378) 

Baris 

BSC Feb 

1/430 l 

««« 

- 

0 

- 

B 

BriMiAkwteP 

tan Mar 

301800 

(WS800I 

319 

03.1) 

11.1 

0074 

Cstrie A WMess 

Tria Mr 

180bn 

PI 8800 

238 

E37) 

625 

(7 44 

Cariat 

rot Ur 

3800 

WSQ 

3.19 

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1.1 

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CeWs 

Mb Maf 

1880 L 

€« U 

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1/420 

(1880 ism 

(1687) 

63 

(524 

CfenfendThat 

tap Ur 

667 

HD 

ao 

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23 

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OnitaBtai 

Chan Dac 

121800 

(t«2DQ 

208 

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148 

04fl 

CrinariulL 

RMS Msr 

28» 

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128 

038) 

625 

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Taw Har 

66/400 L 


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1220 

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281 

035) 

1.15 

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FlCOmaitaW 

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1509 

(121J? 

058 

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FtontaB Hfehtoctov 

felt Apr* 

W18 

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47 


44 

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flfesss 

Re&i Jan 

1880 

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B*» D ten 

480 L 

{271 U 

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11800 

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208 

(178) 

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287,100 

029.1001 3588 

(5293) 

248 P29B) 

tap 

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15800 L 

068001} 

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London WorihrCtfs 

Hit Mr* 

1044 

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(536 

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poi) 

Msodomld Mate A 

SMC Mar 

4870 

(jjBg 2447 

0030 

888 

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851800 

(138804 

208 

064 

62 

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MsrttoCtsrisBao 

HI* Apr* 

127174 

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4880 L 

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280,000 

(247800 

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ftaadsrHMB 

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2810 

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.- 

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tteefen Property 

Pico Mr 

1880 

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2.73 

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- 

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RraScatbri 

Tat Mar 

20800 

(08001 

784 

(78(? 

644 

(944 


Uh FSb 

6880 

RW0| 

1B.1 

(183) 

63 

(574) 


InTr Ma 

6860 

(58B0| 1741 

0748) 

108 

(1M 

Stasat 

RaQn Jan 

62900 L 

Wioo» 

- 

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- 

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SouBsmn 

Mod Apr 

1710 

(1880| 

783 

(838) 

296 

P.1) 

aport Weat Water 

Wlr iter 

88800 

P28O0J 

688 

CS7JE6 

253 

(237) 

fewhwa 

RaGn Apr 

62400 

0680® 

07 

M 

55 

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Thom EM 

I8H Mar 

326800 

tovoq 

477 

(431? 

348 

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28TO 

(180? 

489 

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221 

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296 L 

(148 1} 

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025 

p24 

Voepar Tbonacnrit 

Eng Ite 

21800 

(198001 

462 

(413) 

160 

(154 

WtotoagpOl 

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287800 

(M6200J 

624 

(308) 

990 

(194 

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Rap Deo 

6850 

vm 

12.1 

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775 

(74 

Young A Goto Btenay 

Bra* Apr 

8880 

(5,170) 2443 

12644 

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No major European country 
has a growth rate of 9%. 



**"■*’ R£Si.‘LTS 


' '* £ 
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|V< 


It’s a first quarter figure that not only 
governments, but also many other 
companies, would love to release. 

Because this 9 percent year on year 
increase in sales for the technically 
identical Opel/Vauxhall range is more 
than double the 4.2 percent increase 
recorded for the Western European 
car market as a whole. 

Consequently, for the first quarter of 
this year we were once again the Num- 
ber One car brand in Western Europe 
with a best ever market penetration 
of 12.5 percent. 


It’s a happy situation which should get 
even better. After all, Opel/Vauxhall has 
a state-of-the-art product range which 
is able to succeed in a steadily impro- 
ving market. 

Take the new Corsa, for example. 
According to press reports, it is one of 
the safest, roomiest, most attractive 
and practical of small cars. Sales have 
increased to the extent that in Western 
Europe it is now the biggest selling 
product in its segment - typical of the 
huge success this “grown-up small 
car” is enjoying in 50 countries around 
the world. 


Then there’s the new Omega. It’s sure 
to make tremendous inroads into the 
upper mid-size car sector and we al- 
ready have orders of 50,000 units. 

So don’t be at all surprised if, for Opel 
and Vauxhall, the next three quarters of 
1 994 turn out to be every bit as good 
as the first quarter. 





WEEKEND MAY 28/MAY 2> I&4 


FINANCE AND THE FAMILY 


A new world of margins 


With rolling share settlement near, Norma Cohen looks at possible credit changes 

E ver since the Wall another ordinary feature In the Geoffrey Tomer, chief execn- ales what it calls an Investor price in a falling market 

Street crash of course of doing business. Now, tive of the Association of Pri- Creditline Service far invest- their margin account 

1929, stockbrokers with the advent of 10-day and vate Client Stockbrokers and merits outside the UK which Although this stratei 

have been just a five-day railing settlement, UK Investment Managers, says the complies with the regulations fraught with da ngers i 

little anxious about stockbrokers are for the first organisation has art up a com- of the US Securities and market goes the wrong 


E ver since the Wall 
Street crash of 
1929, stockbrokers 
have been just a 
little anxious about 
igniting their money to 

buy shares. At that time, cli- 
ents were extended cash for 
large stock purchases after pro- 
viding collateral sometimes 
worth as little as 10 per cent of 
the value of the investment. 

Needless to say, when share 
prices began to plummet, bro- 
kers asked for add i tion col- 
lateral which the could 

not provide. The rest is history 
- and not for nothing has the 
US had stringent regulations 
ever since an what is known as 
marg in tra ding The rules, 
enshrined In the Securities and 
Exchange Act of 1934 (section 
7), spell out how much collat- 
eral brokers need from their 
nTianta in order to buy shares 
for them on credit. 

Some 60 years on, margin 
trading is an indelible port of 
the private investor's land- 
scape. accepted as simply 


annthar ordinary feature In the 
course of doing business. Now, 
with the advent of 10-day and 
five-day rolling settlement, UK 
stockbrokers are for the first 
thnft having to «w«idAr if they, 
too, win need special arrange- 
ments for extending credit to 
clients. 

The first phase starts on July 
18. Ten business days later, 
payment will be due for any 
shares bought on that date - a 
much speedier settlement rate 
than the gap of two to three 
weeks with which investors 
have become comfortable. If, 
after July 18, a chant's cheque 
does not clear on time, the bro- 
ker will have two choices: 
grtonttifig his own credit to set- 
tle the agreed share purchase 
or “failing” to complete the 
trade. 

Since that costs money anti 
leaves investors without the 
shares they wanted, a credit 
extension by the broker on the 
client’s behalf makes sense. 
That is tha g <gfr nf marg in trad- 
ing: 


Geoffrey Turner, chief execu- 
tive of the Association of Pri- 
vate Client Stockbrokers and 
Investment Managers, says the 
nf gaTriggtinn fr ag set up a com- 
mittee to study the implica- 
tions of marg in trading. 

Securities regulators are, 
however, being more cautious. 
At presort, the Securities and 
Futures Authority - the self- 
regulatory body for stockbro- 
kers and futures dealers - 
requires clients to provide col- 
lateral equal to 100 percent of 
any credit extended. 

Recently, the SFA altered its 
rules slightly; now, stockbro- 
kers must ensure that any col- 
lateral held can be Hq mHatPd jf 
necessary- They must also take 
care they have greater cer- 
tainty of their rights to if 
a client does not repay the 
loan. 

John Dolan, a securities law- 
yer with Merrill Lynch Interna- 
tional in London, says: "Mar- 
gin trading is widely accepted 
In the US by sophisticated pri- 
vate investors.” Merrill oper- 


ates what it calls an Investor 
CkedftLme Service far invest- 
ments outside the UK which 
complies with the regulations 
of the US Securities and 
Exchange Act 

While different brokerage 
fftflftpaning xofTI offer ilirfarunt 
terms for various aspects of 
the business, they are all the 
same in two respects: the per- 
centage of the purchase price 
which can be borrowed, and 
the value of the collateral pro- 
vided fl gflfrret fhi* T faflyy 

MemU’s product Eke most 
others in the US, allows the 
investor to open an account 
While that is in surplus, the 
investor can earn a rate of 
interest While it is in drfy t, 
the investor is charged inter- 
est These accounts allow 
investors to make larger pur- 
chases of shares in a bull mar- 
ket than they might otherwise 
be able to. 

Investors also can sell shares 
short - that is. to dispose of 
shares they do not amt - and 
buy thttm back later at a lower 


price in a falling market using 
their margin account 

Although this strategy is 
fraught with dangers if the 
market goes the wrong way, 
sophisticated private investors 
in the US may be dhia to utilise 
techniques such as stop loss 
orders to lftnit the damage. 

To understand how margin 
works, it is helpful to examirw 
Merrill's product Let us say 
you buy $10,000 worth of 
shares a nd leave them on your 
account For shares worth $10 
each or more, Merrill will 
allow you to borrow a sum 
equal to ha lf their market 
value if you use those shares 
as collateral. Shares worth 
from $3 to $10 each allow you 
to borrow up to 50 per cest of 
the market value of an addi- 
tional purchase, but those 
under $3 give no borrowing 
power. 

Merrill's client agreement 
spells out the a mmmts of inter- 
est to be charged an the credit 
extended. But if the value of 
the shares Merrill is holding as 


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collateral falls, the firm will 
make a “maintenance call”. 

For higher value shares, the 
market price must always be 
at least 80 per cent of the value 
of credit extended, while lower 
value shares must not fall 
below $3 earth. Should these 
levels be breached, you will 


haw to provide additional col- 
lateral - either that or Merrill 
has the right to sell the exist- 
ing collateral in your account 
Clearly, the advent of margin 
trading in the UK could do 
mace th«m simply help inves- 
tors pay for shares more 
promptly; it could help sophis- 


ticated Investors engage to im- 
mure speculative trading strat- 
egies than they are accustomed 
to. The question is whether the 
advent of speedier share settle- 
ment tn the UK wifi open the 
door for a bigger host of oppor- 
tunities for investors than they 
had ever dreamed possible. 


T he wise investor, it 
seems, would do well 
to stay clear of the 
UK government bond 
- or gilt - market After 
another battering this week, 
the risk that gilts will foil still 
lower looks just too great But 
others believe differently: for 
them, the only way is up. Who 
is right will depend on what 
happens to inflation and Inter- 
est rates. 

Bond markets have been in a 
tizzy ever since February when 
the Federal Reserve, the US 
central h ank, raised short-term 
interest rates in a preemptive 
strike cm inflation. Investors 
took fright, sensing a turning 
point in world rates, and bond 
prices plummeted. The UK 
market has been one of the 
worst affected: gilt prices have 
fallen by nearly 15 per cent 
since the beginning of the 
year. Yields have climbed 2 Y* 
percentage points; long-term 
Interest rates now stand at 
more than 8 per cent 
The implication is dean the 
markets expect infla tion and 
interest rates to rise soon. AH 
the signs are that the economic 
recovery is continuing apace 
and is managing to ride out Ihe 
April tax Increases that some 


Should investors steer clear of gilts? 

With prices still falling, Graham Bowley examines the risks of buying government bonds 


• • * r 
-.-■4 vr« 

•. . - r 


-Pnrcoaittv 


v -iti 


thought would stop it dead. 
There is, however, scant evi- 
dence that inflation is begin- 
ning to rise - underlying infla- 
tion is at its lowest level since 
1967. There is also little reason 
to believe shortterm interest 
rates are about to increase. 

Kenneth Clarke, the Chan- 
cellor of the Exchequer, was 
even seen to argue for a cut in 
interest rates in the last pub- 
lished minnteg of his monthly 
meeting with. Eddie George, 
governor of the Bank of 
England. His panel of indepen- 
dent advisers, the so-called six 
wise men, have said there is no 
need for interest rates to go up. 

The Bank has hardened its 
stance on interest rates - and 
indeed it would need to be 
brave, if not foolhardy, to try 
to cut them shortterm in the 
thee of rising long-term rates. 
The consensus now seems to 
be that while interest rates 
have gone down as for as they 
are going to go, they are not 
going to go up just yet, either. 


So why the nervousness in 
the gnt market? 

Calm and common sense 
seemed to have been restored 
after the Bundesbank, Ger- 
many’s central bank, lowered 
its discount rate on May 11 and 
Ihe Federal Reserve raised US 
shortterm interest rates again 
on May 17. The bond markets 
seemed satisfied that the cen- 
tral banks’ monetary policy 
reflected the different stages of 
economic recovery in each 
country - the US already well 
into its comeback, followed 
closely by the UK, with the 
rest of Europe still growing 
only slowly. 

Investors, however, began to 
doubt that the US bad done 
enough to shift in teres t rates 
to a more “neutral” stance - 
one that neither stimulates nor 
stunts the recovery. Then, 
comments by Bundesbank 
president Hans Tietmeyer, and 
concern about continued explo- 
sive growth in the German 
money supply, combined to 


HhaTlang P the a ^ mti ptinn that 

German interest rates would 
continue to fan. 

The final straw for the mar- 
kets name this week when lack 
of demand forced the Bundes- 
bank to ™n off an snntinm of 
German government bonds. 
Germany’s band market took a 
dive - mid gilts followed suit 

So, is now a good time to buy 
bonds? “Gilts definitely look 
cheap at the moment,” says 
Ruth Lea, chief UK economist 
at Lehman Brothers. “Long 
yields could easily fall from 
their present high levels and, 
with a corresponding rise in 
price, that means a substantial 
capital gain. But whether now 
is the right time to buy 
depends on whether you think 
Interest rates are about to 
♦mu, and th "* is very difficult 
to judge with current market 
volatility.” 

Over to James Higgins, of 
firemriai adviser Chamberlain 
De Bros. It’s almost the time 
to buy," he says. “Gilts are 


i 


Morgan Grenfell 


No.l in Europe. 










EUROPEAN GROWTH TRUST 


TOTAL 1 

SINCE 

LAUNCH 

MORGAN GRENFELL 
EUROPEAN GROWTH 

£3,995 

EUROPEAN 
SECTOR AVERAGE 

£249* 



CONSISTENT EXCELLENT PERFORMANCE 
The Morgan Grenfell European Growth Trust is die 
top pe rf orming European Growth Trust in its sector 
since its launch on 1 1th April 1988. 

An Investment of XI ,000 invested at launch would 
now be worth £3,995* repre s enting a compound annual 
return of 26%*, significantly outperforming the avenge 
European Fund, 


For further details please contact your Financial 
Adviser. Alternatively call us free today on 0800 282465 

or complete the coupon below. 


To: Morgan Grenfell Investment Funds Ltd, 
20 Finsbury Circus, London EC2M IUT. 

Please send me further details of the 
Morgan Grenfell European Growth Trust D 
Morgan Grenfell European Growth PEP □ 


INVEST NOW 


I.PIcnr Ini 


Against a background of falling interest rates and 
economic recovery in Continental Europe, we expect 
European stocks to generate substantial growth in the 
medium term. Hie Morgan Grenfell European Growth 
Trust and European PEP are ideal ways to take ad v a n t a ge 
of die wealth of European investment opportunities. 


Full Name. 


MO KG \ V 
(rfi l \7 ll! 


* Source: Mtapaiefftr Iq bid, m* "Ojnwnim— led m» 1—nA (T1 .488), and l .5.89 to 2.5.94, 

Fima rmmbtr far pat pwfemonor h net nrcsMwfyo grids to fufcra perfomra The woke efqnifa wid noma from font mar M o* **sB 
m rna (#■» r*y partly be die raw* of —ebon— rata fudoadsm), and tfw investor i—jr not gsi bode (ho origind amour* bnoriod. wi rtfs* and 
rafiofe an those axAnm et 6m of prating and mtgr fag sub|ect to drangs- Thair rau vd dapmd upon imSviduoJ draraftn— . 
band by Moig— Gram knwWmnl fandi lid, 20 Fnfauy Catau. tendon GQM 1 Ut. Member of IMRQ, Jitagon Grantal Immanent Funds Ud 
^ on eppdniBd (opnMflM^ GnnU (Mf 7nRt Monogsn Ud whSdi it a moflbar of ntRO, (AteRG aid d>M AU7IF. 


oversold at the moment hot we 
are advising people to sit tight, 
at least for a few months, until 
an tiiis uncertainty has been 

shaken not " 

Richard Boyton, another 
adviser, adds: “A yield of, say, 
7 % per cent inflatio n of 2 

per cent gives a real return of 
5 V* per cent. There may be 
some capital loss but the 
return is not bad at afl.” 

More nervous Investors may 
want some sort of protection, 
such as that provided by an 
tottot-ltokpri gilt, the VEhie of 
which is adjusted for inflation. 
Alternatively, the new convert- 
ible bond issued by the Bank ctf 
En gland this week, the first 
store 1987, canid provide the 
protection, the personal inves- 
tor needs when faced with 
such volatility. 

The Bank auctioned £2bn of 
7 per cent convertible gilts 
which will mature in August 
1997 - but which investors 
have the option of converting 
into a 9 per cent 2012 bond for 


the first time on August 6. 

A convertible gilt is a short- 
dated bond which can be 
exchanged for a specified long- 
dated gilt at a fixed price some 
time in the fixture. Its appeal is 
that ft allows investors to take 
part in more than one area of 
the gilt market So, it provides 
useful insurance or a hedge 
when yields, particularly at the 
long end, are volatile. 

IF yields foil, then investors 
may exercise their option of 
co nv ert i ng to the long® band; 
thus, they benefit from the ris- 
ing market But if yields rise, 
they will be protected by being 
exposed only to the foil in 
value of the short-dated band. 
“You get the best of both 
worlds," as one analyst puts it 

The last convertible gilt, 
which expired in 1990, was 
only a partial success: out of a 
total of £lbn, only £5Qm of the 
bonds were reported to have 
been converted. But analysts 
are much more optimistic 
about the prospects for the 






,-tjS Try '"-: 










new convertible. They say that 
the auction was a success 
despite the general sell-off that 
occurred in the gilt market on 
Wednesday. 

“You usually have to pay for 
the flexibility that this gilt 
offers but, an our estimations, 
the convertible was good 
value,” says David Baal, of the 
American investment bank 
JJP- Morgan. 

“There was a lot of interest, 
mainly from longterm holders 
such as international mutual 
ftmds, domestic insurance com- 
panies and some bank portfo- 
lios. And we think people are. 


going to bold on to them. The 
Bank has been quite clever in 
taringtag it to the market at . 
this time. It’s the 9art of thing 
people want in uncertain dr- : 
cmnstances.” Baal adds. 

Other analysts are less coo- - 
vinced of the attractions of a 
convertible gflt They say It is ; 
for too complicated for the per- 
sonal investor to understand, 
which makes it risky. Nevei^ . . 
tbefoss, U could be the safest 
place for the wise investor to 
put his money if he wishes to 
invest in a gilt market that 
probably has still further to 

fen. : — — . 


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FINANCE AND THE FAMILY 


* 


Investing 
for income 

Scheherazade Daneshkhu explores 
a sector that can prove confusing 


A whole variety of 
funds is bubbling 
away within the 
cauldron of the UK 
equity Income sector. But the 
resulting brew can be a confus- 
ing mix of flavours. 

The Association of Unit and 
Investment Funds defines UK 
equity income funds as provid- 
ing an income at least 10 per 
cent higher than tha t on the 

FT-SE-A All Share index. But 
fewer than 40 per cent of the 
funds in the sector conform to 
this definition. 

At the beginning of tbe 
month, tbe yield on the All- 
Share was about 3.7 per cent, 
but some funds were yielding 
as little as 2 per cent and oth- 
ers more Chau 6 per cent. The 
difference was due to the vary- 
ing investment aims of the 
trusts. Some try to give inves- 
tors a high yield, others con- 
centrate on “total return” by 
providing a cocktail of income 
and capital growth. 

Yet another ingredient ha« 
been tossed into the pot 
recently by the Securities and 
Investments Board, the chief 
regulator of tbe financial ser- 
vices industry. It has allowed 
unit trusts to charge their 
management expenses out of 
capital rather than income. By 
doing so, income funds can 
boost their yields overnight. 

Investors may find that the 
new charging structure masks 
a greater erosion of their capi- 
tal. Optimists argue, however, 
that some trusts may charge 
their expenses to capital main- 
tain the same yield and use tbe 
“extra” revenue to buy better- 
quality stock for more rapid 
capital growth. 

For a long time, it appeared 
that you could not go wrong by 
investing in the sector. It was 
tbe natural place for income- 
seekers. A look at the figures 
also showed that if you were 
after capital growth and chose 
to re-invest your income, you 
would get greater returns here 


than in tbe UK equity growth 
sector. 

According to Micropal the 
average UK equity income 
fund delivered returns (otter to 
bid, with net income re-in- 
vested) of 303 per cent in the 10 
years to April 1, while equity 
growth mustered a return erf 
2S5 per cent; the figures over 
five and three years are growth 
of 45 and 32 per cent for equity 
income, and 40 and 38 per cent 
for equity growth funds. 

Michael Lehhoff, strategist at 
Capel Cure Myers, says the 
outperfonnance is due mainly 
to the re-rating of shares on a 
high yield. Income funds select 
companies with a high yield - 
where their dividend repre- 
sents a relatively high propor- 
tion of the share price. A com- 
pany might be on a high yield 
because its prospects were not 
thought to be good. 

The shares may be re-rated, 
however, if tbe market decides 
the company has been under- 
valued or it becomes the sub- 
ject of a merger or acquisition. 
As an economy comes out of 
recession, cyclical stocks - 
SDCh as arnaTter cnmpaniftfi or 
recovery stock bought for their 
high yield - will give higher 
returns than stock of a similar, 
but lower-yielding, type. 

More consistent performance 
win be found in the funds in 
our table. It lists trusts which 
are in the top decile (25 per 
cent) in the three and five 
years to May l; some also have 
top decile performance over 10 
years. Funds without a five- 
year track record are excluded. 
The effect of re-investing 
Income is marked. 

High-yielding shares are not 
the only way of providing an 
Income. William Mott, fund 
manager of Credit Suisse 
Income, moved about 5 per 
cent of the fund Into perma- 
nent interest-bearing shares, 
which are issued by building 
societies and offer a yield of 
between 9 and 11 per cent 


W ith a bank holi- 
day Monday 
approaching, I 
will be tempted 
to do some further investment 
research. Last bank holiday 
Monday, the sun surprised 
everyone by appearing. People 
on the beach sat or lay in little 
groups. I glanced at them from 
my beach hut before continu- 
ing with one of my favourite 
holiday activities: looking at 
company groupings on the 
share price pages of the FT. 

It seemed to me that spend- 
ing an hour or so seeking 
anomalies in the various sec- 
tors of the market was likely to 
be more rewarding than lying 
around in the sun risking pre- 
mature ageing and skin cancer. 
1 hoped that the fresh sea 
breeze would blow cobwebs 
from my mind and that poten- 
tial bargains would dance 
before my eyes. 

From experience, I have 
found that comparing the 
price/earnings ratios of various 
companies within the same 
sector can be a useful pointer 
to further research. P/e ratios, 
published to the FT, are based 
on a company’s share price 
divided by its last published 

earnings. 

Suppose a company has lOQm 
issued shares and made a 
profit after tax of £10m: the 
profit attributable to each 
share is lOp. If the share price 


Diary of a Private Investor / Kevin Goldstein-Jackson 

Holiday readme that pays 


is I50p, the p/e is 11 If the 
profits remain the sa me , but 
the share price rises to 250p, 
the p/e is 25. If the average p/e 
for a particular sector is, say, 
18 and an individual company 
stands out because its p/e is 
only 10, does this mean the 
company is a bargain? 

Not necessarily. It could well 
be that the low p/e is due to 
investors believing the com- 
pany will announce reduced 
profits. Or, perhaps, its medi- 
um-term future might not be 
as rosy as other companies in 
the sector with higher ratios. 
This is why I use the p/e only 
as the starting point for fur- 
ther research. 

Have tbe company's shares' 
been marked down too harshly 
by tbe market? Is the low rat- 
ing merely temporary? Does 
tbe company have solid - per- 
haps under-valued - assets, so 
giving it considerable 
long-term potential? Will the 
low p/e attract a take-over bid? 

I try always to find an answer 
to these, and many other ques- 
tions, before I invest 

My first major source of ref- 
erence is the annual report. 



With luck, the company wrQ 
use the FT's annual reports 
service (details on the share 
price pages). If so, a ’phone call 
will be all it takes to obtain 
what I require. 

Sometimes. 1 will monitor 
the company's share price 


movements for a few months 
or more, just to see if the mar 
ket marks down the share 
price even further an rumours 
of bad news. Quite often, 
though, not all my questions 
can be answered with 100 per 
cent certainty; thus, my even- 


tual investment rfanffinn might 
be partly the result of a gut 
feeling or hunch. 

Perhaps my quickest success 
with this method was to April 
1986 following another bank, 
holiday p/e exercise. I noticed 
that NSS Newsagents had a p/e 


of about 14 wh er ? a s Wii 
Smith and Bffenzies had ratios 
of more than 20. 

Looking in more depth at 
NSS, I discovered that UK 
Provident owned 17 per cent oi 
it At the time, there were 
press reports abo ut va rious 
“problems" with. UKP aad, 
indeed, it entered an opera- 
tional merger that month with 
another insurance company. 
Friends Provi dent 

I thought UKF’s stake m 
NSS might be a useful spring- 
board from which a predator 
could Munch a takeover bid, 
so my wife wasted no time in 
buying NSS shares for 150p 
each. In June 1986, Gallaher 
-duly inftde a tod and my wife 


months. 

If low p/e ratios can pomt 
the way to possible profits, can 
very high ones indicate shares 
to avoid? Again, not .necessar- 
ily. The high p/e might result 
from the market anticipating a 
substantial increase in the 
company’s profits which might 
t hen produce a lower p/e. Or 
perhaps the share price has 
been marked up due to take- 
over rumours. 

Farther investigations are 
needed before dismissing a 
company just because Its p/e Is 
very high by comparison with 
other companies to its sector. 


PORTUOLIO 



Top-performing UK equity income unit trusts 


Trust name 

3 years 
net inc 
(no Jnc)£ 

5 years 
net he 
(no inc)£ 

10 years 
net Inc 
(ho inc}£ 

Yield % 

Credit Suisse Income 

147 (130) 

168 (137) 

488 (313) 

4.67 

Eagle Star UK Hi Inc 

150 (128) 

179 (138) 

- 

54)1 

GT Income 

161 (139) 

167 (129) 

405 (248) 

435 

Juptter/Merfn Income 

182 (159) 

191 (152) 

- 

4.00 

Lazard UK Income 

142 (126) 

169 (136) 

462 (297) 

3.74 

London & Manch Inc 

141 (123) 

159 (12 5) 

- 

5.00 

Morgan Grenfefl Eq Inc 

157 (140) 

177 (145) 

- 

3.04 

MSG Dividend 

146 (128) 

155 (125) 

457 (307) 

434 

MSG Equity Income 

160 (137) 

156 (121) 

410 (257) 

4.62 

Newton Income 

151 (138) 

195 (164) 

- 

3.54 

Perpetual Income 

142 (127) 

156 (128) 

419 (290) 

3.11 

Prolife High Income 

149 (132) 

156 (126) 

476 (335) 

4.20 

Schroder Income 

149 (132) 

165 (133) 

445 (297) 

ass 

Sun Alliance Eq Inc 

144 (125) 

155 (122) 

- 

4.45 

Average 

132 (118) 

144 (115) 

399 (264) 

- 


Saucs McnpoL Tin taMe Aon On «kM rf Cl 00 knvMM h On 3, S aid 10 ywa to My Z. Funds 
Incfudod «o Owm ki 0w top daota onr 3 and G years. Rums Mho* a 5 yeer record an e w attr i sd. 
Oder n DM. Tin IM col um n cl Ogiaw ahoan nun with net Income rafnmstatt Sgure i In braeMti 
snow On return MVi no renwssMent 


Where you should look 


The choice of Investment 
trusts specialising in UK 
equity income is much smaller 
than that of unit trusts. They 
are to be found in two sectors; 
Income growth, and high 
income. 

Income growth trusts, which 
aim to provide a yield 10 to 50 
per cent above the FT-5B-A All 
Share index as well as capital 
growth, have been around for 
a long time but the high-in- 
come sector is a more recent 
development Very few high- 
income trusts have a five-year 
record. 

The best-performing income 
growth trust over both three 
and five years is Value ft 
Income, which used to be the 
Stewart Enterprise investment 
trust before it was taken over 
by Otim in August 1986. 

V&Ts consistently high per- 
formance is the result of an 
investment strategy untypical 
of the sector: up to half its 
portfolio consists of direct 
holdings of commercial prop- 
erty, mainly small shops in 
Scotland. “A typical property 
for us would be WooTworths in 
Campbeltown,” says manager 
Matthew Oakeshott 

Perhaps surprisingly, tbe 
fund made a profit on commer- 
cial property all the way 
through the recession. Tbe 
remainder of the fund is in 
Wgh-ylelding equities. 

Murray Income’s portfolio is 
probably more typical of 


income growth funds. About 
80 per cent is invested In tbe 
UK with the largest proportion 
to top 100 stocks, backed up 
by medium-sized companies. 

After weathering the reces- 
sion by moni taring companies 
very closely for indications of 
dividend cuts, manager Susan 
Boyd is now dropping her 
defensive stance and moving 
into manufacturing stocks 
such as engineering; chemicals 
and building materials. 

A serious drawback for 
investors is that heavy 
demand for high-yielding 
trusts means almost all the UK 
income growth investment 
trusts are at premiums of 2 to 
9 per cent This leaves holders 
open to losses if premiums 
dwindle or disappear. 

Nigel Stdebottom, an invest- 
ment trust specialist at stock- 
broker Gerrard Vivian Gray, 
says he would be happy buy- 
ing several of the trusts in this 
sector at around net asset 
value, as they are unlikely to 
foil much below that level but 
he would not buy them at 
their present premiums. 

As an alternative he would 
look at other sectors, such as 
international general where 
yields were slightly lower. But 
many trusts are trading at dis- 
counts of aronnd 10 per cent, 
thus boosting the effective 
yield of the underlying assets. 

Bethan Hutton 


UK income growth investment trusts 


Trust name 


3 years 
net inc 
(no inc)£ 


5 years 10 yeas 
net inc net Inc 
(no inc)£ (no inc)£ Yield % 


Dunedin Inc Growth 
Investors Capital 
Lowland 

Merchants 
Murray Income 
Temple Bar 
TH City of London 
Value & Income 


150 (132) 
139 (124) 
168 (150) 
149 (130) 
162 (149) 
161 (140) 
149 (133) 
205 (180) 


190 (153) 
183 (130) 
202 (186) 
186 (149) 
196 (168) 
179 (14?) 
207(168) 
230(182) 


460(328) 
427 (290) 
639(459) 
494 (333) 
498(351) 
582 (385) 
655 (438) 

n/a 


5.41 

5A4 

4.15 

6.12 

4.57 

5.48 

4.63 

4.92 


Somac Sett Capa* mum onJuded. Tha tsOe ttma toe «»*ug fr'** * 11 * 

M in On 4 & jnd 10 yam to Ms* 2_ Tl» to oofanm C# ffeaM ««*n 

bpotna i n m a n B O . igre w b ra dwta #10— it* wto* v«*h no wtowawat ... .. 


A new unit trust aiming for all-out capital growth 


PORTFOLIO Emerging Markets Fund 
will aim for maximum capital growth 
through investment in the rapidly growing 
economies of the world’s emerging 
markets, particularly in Asia and South 
America, but also in Africa and Eastern 
Europe. 

Emerging markets are attractive, but 
they are a high risk area. Individual markets, 
shares and currencies can be very volatile. 
The fund aims to reduce this risk through 
wide diversification, by investing in a very 
broad spread of markets, such as China, 
India, Korea, Malaysia, Thailand, Taiwan, 
Argentina, Brazil, Chile, Mexico, South 
Africa, Russia, Hungary, the Czech Republic 
and Turkey. 

The fund aims to reduce risk further by 
investing through carefully chosen closed 
ended investment funds rather than individual 
shares. Initially about 25% will be in global 
emerging markets funds; 40% in Asian funds; 
20% in South American funds; and 15% 
elsewhere. 

THE PORTFOLIO APPROACH 

We believe that by working with data from 
Fund Research, the leading specialist in the 
analysis of fund managers, we can identify 
the investment companies with the best 
managers and best prospects. Our existing 
Portfolio Fund of Funds Has successfully 
used the same approach to become the 
outstanding fund in its sector. 

OUR RECORD 

Although past performance is not 
necessarily a guide to the future, over the 
period from launch in December 1989 to 
2nd May 1994 the value of units in Portfolio 
Fund of Funds (offer to bid) rose 78.2%, 
the best performance of all 21 funds of funds 
monitored by Micropal. Over other periods 
to 2nd May 1994, performance was as 
follows: 


4 years: 

+ 79.1% 

1st out of 22 

3 years: 

+ 70.7% 

1st out of 30 

2 years: 

+ 64.9% 

1st out of 40 

1 year: 

+ 34.2% 

1st out of 59 


You should remember that the value of 
units can go down as well as up. 


LOWER CHARGES 


The initial charge is 5%. But with investments 
of £5,000 or more the effective charge you pay 
on the whole amount is reduced as follows: 


£1,000 to £4,999 

5% 

£5,000 to £9,999 

4% 

£10,000 to £24,999 

3% 

£25,000 to £49,999 

2% 

£50,000 to £99, 999 

1% 

£100,000 and over 

Nil 


The reduced initial charge is given in the 
form of additional units. 

The annual charge will be 1.20%. This is 
the lowest of any unit trust specialising in 
emerging markets. Of the others currently 
available, 5 charge 1.25%, 12 charge 1.50%, 
one charges 1.75% and one 2.00%. 

Since the investment policy is to aim for 
pure capital growth, units are accumulation 
units in which net income is automatically 
reinvested and reflected in the price. 

When you sell units back to us, payment 
is made within three days of the day we 
receive the renounced certificate. 

Investors will be invited to regular informal 
unitholders’ meetings to be held in London 
twice each year. 

Units in Portfolio Emerging Markets 
Fund are available at the fixed initial 
offer price of 50p each until 3pm on Friday 
17ch June 1994. The minimum initial 


investment is 2,000 units, which cost £1,000. 

From 20th June, units will be available at, 
the price ruling at the next Valuation after 
your order is received- .. . 

FURTHER INFORMATION 
Applications will be acknowledged and certificates 
will be sent before 11 July. Copies of the Trust 
Deed and Scheme Particulars are available from 
the Managers on request. 

Units are valued and dealt in on a forward basis 
at 1.00 pm daily. The first dealing, day will be 
Monday 20 June. Subsequent orders to buy or sdl^ 
will be carried out at the next valuation after 
receipt of instructions. 

Prices are published every day in the Financial 
Times and other newspapers. The spread between bid 
and offer prices may be varied within the regulations. 

The maximum annual charge permitted under the 
Trust Deed is 2%, but any increase from the current 
1.20% would require 90 days notice. Trustee’s, 
Registrar’s and Auditor’s fees are paid by the fond. 

Income is reinvested net of basic rate tax. 
Higher rate taxpayers may incur a further liability 
but this is likely to be small: the estimated initial 
gross yield is 0.1%. Any disposal of units may be 
liable to capital gains tax. 

Commission of 60% of the effective initial charge 
is payable to independent financial advisers. 

The Trustee is Lloyds Bank Pic. The Registrar j 
and Administrators are Unit Trust Accounting and 
Management Limited, 1 White Hart Yard, London 
SE1 1NX. Telephone 071-407 5966. FAX 
071-4075265. 

The Managers are Portfolio Fund Management - 
Limited, 64 London Wall, London EC2M 5TP 
Telephone 071-638 0808. FAX 071-638 0050. 
Members of IMRO, LAUTRO and AUTIF. 




I IM1TM 1 ACCED of units ,n Portfolio Emerging Markets Fund 
■■■■ * WPMb Wn-EEm OFFER CLOSES FRIDAY 17 JUNE 1994 

I 
! 


OFFER CLOSES FRIDAY 17 JUNE 1994 
To: Portfolio Emerging Markets Fund, 1 White Hart Yard, London Bridge, London SEl 1NX. 

I/we wish to invest the sum of (minimum £1,000) in Portfolio Emerging 

Markets Fund and enclose a cheque payable to Portfolio Fund Management Limited. ^ " 


SURNAME - ...TITLS (MR/MRS/OTHER).. , 

FORE NAME! SI 1, 

ADDRESS i _.. . 


SIGNATURE!*). 


. DATE.. 


flunrt ippbcanM, e.g., butbwd ad wife, should at ugn and endow draih icparatdyj 
TWi olfer U not aj»ai in mafcan of the Republic of Ireland. Registered at England K» 34 WOT 


FT 28 /S I 



EMERGING MARKETS FUND 









v *n WEEKEND FT 


3FTNANCIAL TIMES WEEKEND MAY 2&/MAY 29 1994 


FINANCE AND THE FAMILY 


Bad advice 
victims get 
a lifeline 

But do pension audit services offer 
real help , asks Debbie Harrison 

F armer company pen- mum compensation in deserv- 
sion scheme members ing cases - and the service will 
who transferred their he free, 
benefits to personal 


F armer company pen- 
sion scheme members 
who transferred their 
benefits to personal 
plans after getting bad advice 
may be tempted to pre-empt 
the Securities and Investments 
Board (SIB) guidelines on how 
those responsible should assess 
the financial damage and 
award compensation. 

Even when the guidelines 
are published in July, SIB 
thinks that if all 500,000 poten- 
tial cases of bad advice are 
investigated, it could be a year 
or more before the last one is 
settled 

In the meantime, several 
firms of financial advisers are 
offering a “pension transfer 
audit” service. This claims to 
provide tangible evidence to 
help transfer victims pursue a 
case for compensation. 

Clearly, though, those who 
have lost money through pen- 
sion transfers should not part 
with any more unless their 
case looks certain and the 
adviser can demonstrate inde- 
pendence and pensions exper- 
tise. 

One pension consultant. 
Lexis*, offers a free fact sheet 
to help individuals assess if 
they should investigate past 
advice. Should the answer be 
yes. the firm's pension audit 
costs £50. 

If the case then goes to 
court, Ringrose Wharton, a 
financial services litigation 
specialist, will act on a no-win 
no-fee basis. Ringrose Wharton 
proved its mettle by making 
successful compensation 
claims for more than 1,000 vic- 
tims of home income plans. 

Tempting though it is for vic- 
tims to seek a speedy resolu- 
tion, SIB points out that pen- 
sion audits may prove simply 
to be another bandwagon for 
advisers. It says its own inves- 
tigations should lead to maxi- 


mum c ompensation in deserv- 
ing cases - and the service will 
be free. 

■ The timetable 
Earlier this month, SIB pub- 
lished details of the priority 
transfer cases and urged advis- 
ers and providers of personal 
plans to negotiate full rein- 
statement in occupational 
schemes for all opt-outs - 
those who belonged to than at 
the Kms of transfer. 

In addition, where the trans- 
fer related to deferred benefits 
- those pension entitlements 
left hehind when an individual 
changes jobs - SIB identified 
these priority cases; 

□ Those who have died. 

□ Those who have started to 
draw their benefits. 

□ Women 50 or over and men 
55 or over at the time of trans- 
fer. 

SIB stressed, however, that if 
you were in one of these cate- 
gories, you would be on the 
priority list already and a 
transfer audit service would 
not speed up the negotiations. 

A spokesman said: “If you do 
not fell into these categories, 
then using a p ens i o n audit ser- 
vice will not make you a prior- 
ity case and will only cost you 
more money.” 

He added that non-priority 
cases should write to the 
adviser or provider c oncwmari 
and register a complaint. 
These cases would be picked 
up in the second wave of inves- 
tigations due to start after the 
July statement 

"What the regulators will do 
is make a co-ordinated 
approach to schemes and pro- 
viders to facilitate reinstate- 
ment and compensation,” the 
spokesman said. "This win be 
more cost-effective and suc- 
cessful than a sales of individ- 
ual Haims fr om different advis- 



■ A victim’s check-list 
To help construct an appropri- 
ate letter to the adviser or pro- 
vider, Robert Ivey - head of 
financial services at actuarial 
consultant Watsons 
suggested that non-priority 
cases should ask themselves 
certain questions to assess if 
they had made a prudent and 
informed decision at the time 
of transfer; 

□ Did your adviser conduct a 
full fact-find covering your per- 
sonal, financial and family cir- 
cumstances and your attitude 
to risk? 

□ Did the pension provider's 
illustration show benefits on 
the same basis as those pro- 
vided under your previous pen- 
sion scheme — for example, th e 
same level of spouse's pension. 


retirement age, and level of 
increases to pensions in pay- 
ment? 

□ Do you understand the guar- 
anteed nature of the benefits 
you have given up, and the 
uncertain level of benefits 
which could be provided to you 
under your personal pension 
plan? 

□ Did the person who advised 
you to transfer examine the 
history of increases to pensions 
in payment within the previ- 
ous scheme? 

□ Are you aware of the level of 
death benefits which you gave 
up, compared with those avail- 
able under your personal pen- 
sion? 

□ Did your adviser give you 
details of bow much commis- 
sion or fees he would be earn- 



JV O ONE CONCENTRATES 
HARDER ON INCOME GROWTH 


Jj/Fit’s a growing income you’re looking 
for, look no further than our tax free High 
Income Unit Trust PER It has a nineteen 
year record of uninterrupted year on year 
income growth — and it has also provided 
outstanding capital growth. 

For an objective view, contact your 
independent financial adviser or, if you 
don’t have one, call the: 

IFA Promotion Line on 
Freephone 0800 387 946 

for a list of independent financial advisers 


£ 1.000 invested in 197 i' 


Prolific High Income 

Building Society 


Income Capnal Cain 

since 1^71 siniT 

£6^75 £21,789 


| Please send me details about the Prolific High Income j 
I PEP. Please Mum this coupon to Prolific Unit Trust . 
Managers Ltd. FREEPOST, tendon EC4B 4JY. I 


POSTCODE 

EBhasa/£M 

If you do not wish to receive am further j j 

mailings from Prolific, please tick the bus . I I 


in your area. | ±ROLIFIC | 

, . , i Concentrating on investment i 

Alternatively, complete the coupon. | | 

taotf flnraoliiMKanirrin 9 ]*Matta?MdncmH«nc.BaitflanMkaa.>aMMU. 2 *$ T»rMr»H,eeBTrtBmCB»liirv*renar<g— " 1 * 0 3 * 

Please remember that past performance b not necessarily a guos to the future. The price at units and the income 
from may go down as well as up Exctonge rates may afeo cause the value of underlying overseas investments to go down or up. 

The tax treatment of PEPs may be changed by future legation. 

DMCiirMklHVuiiMinuitainvoiiiHl lm no nuts 


Buying shares can 


save you money 

Third in a series on the true costs of investing 


T he fledgling investor 
might find some 
stockbrokers' charges 
a bit on the high side. 
In practice, though, direct 
investment in shares can be 
cheaper than putting your 
money into a pension plan or 
endowment policy. The bad 
news, however, is that changes 
in the way the stock exchange 
does business could push up 
those costs. 

. Rotting settlement starts in 
July, after which all deals 
must be settled within 10 work- 
ing days. This is due to be fol- 
lowed next year by a five-day 
settlement timetable And, at 
some indeterminate date, 
comes the new Crest electronic 
settlement system. But City 
brains are still frying to work 
out how these changes can be 
brought in without scaring off 
that hero of the 1980s, the pop- 
ular capitalis t. 

■ Dealing costs 
The first thing for which you 
chrmiri look out when using a 
sharedealing service is a join- 
ing fee. This could be £5 or £10 
or more and is generally a one- 
off charge. 

The next, and more signifi- 
cant, charge is the actual cost 
of buying and selling, hi most 
cases, this is based on a per- 
centage of the value of the 
Hoai usually on a sliding scale 
- for example, L5 per cent on 
the first £2^00, 0.75 per cent on 
the next £2,500, and 0.1 per 
cent on anything else. 

These percentage rates can 
vary significantly from one 
broker to another and the best- 
value broker for a £2,000 deal 
might not be so competitive on 
filQJXM. A recent survey among 
readers of Investors Chronicle 
magazine revealed that they 
were likely to use several dif- 
ferent brokers, depending on 
the sfa» of the transaction. 

Bat there is a snag with very 
small deals: the minimum 
charge. This can malm spiling 
small parcels of, say, privatisa- 
tion shares very expensive: a 
minimum charge of £40 on a 
deal of £1,000 works out at a 
hefty 4 per cent Fortunately, 
there are services which have 
a minimum as low as £9. 

As a general rule, cheaper 
dealing costs can be found 
from the new generation of 
dealing-only (or execution- 
only) brokers. With these, how- 
ever, you get no advice on 
which shares to buy and sell. 
That is left to you. 

■ Extra charges 
There are two costs which can- 
not be avoided wherever you 
go. First is stamp duty of 0.5 
per cent on purchases. Second, 
there is the PTM (Panel on 
Takeovers and Mergers) levy, a 
flat £2 cm deals of £10,000 or 
more. 

Assume brokerage is L5 par 
cent on both purchases and 


mg for ar r an g in g the transfer? 
□ If you joined a new employ- 
er's pension scheme, did you or 
your adviser consider transfer- 
ring your pension benefits into 
that scheme? 

n Do you understand fully the 
reasons why you were advised 
to transfer? 

If the answer to any of the 
above questions is no, then yon 
would be well advised to take 
up the matter with your 
adviser or provider. 

In addition, those who were 
members of a public sector 
scheme (such as local govern- 
ment tiie National Health Ser- 
vice, civil service or police), or 
who belonged to a good final- 
salary scheme providing pen- 
sions linked to the retail price 
index CRPI), should certainly 
query the advice. This is 
because a personal pension or 
buy-out bond is unlikely to be 
able to match these benefits. 

■ Reinstatement problems 
Between now and July, SIB 
has to negotiate with personal 
pension providers and occupa- 
tional schemes to determine 
the cost of full reinstatement 
In most cases, this will be far 
higher than the surrender 
value of the personal pension 
plan. 

The shortfall arises mainly 
because the provider win have 
deducted charges to cover its 
own administration and t he 
commission payments to sales- 
men. But pension scheme 
transfer calculations also are 
at fault 

■ Two plus two 
equals three 

Even if the life office con- 
cerned offered a full return of 
the transfer value, the scheme 
actuary would still identify a 
shortfall for complete rein- 
statement. 

Under a typical final-salary 
scheme, where the pension is 
linked to the level of salary at 
retirement the real value of a 
member's pension rights at 
transfer - known as “past ser- 
vice reserve” - takes into 
account full earnings’ inflation 
up to retirement date. 

Most schemes in the private 
sector pay out transfer values 
that are significantly lower 
than the past service reserve. 
In theory, this means that if 
you took a transfer cheque on 
Monday morning and handed 
it back on Monday afternoon, 
it would not pay for full rein- 
statement. Life offices are not 
the only ones to make a turn 
on your pension transfer. 

■ Who will pay? 

Brian Gibb, principal with con- 
sulting actuaries William M. 
Mercer, explains: “The transfer 
value is the cash equivalent of 
the leaving service benefit, 
which has only limited infla- 
tion protection. The difference 
between this and the past ser- 
vice reserve, which takes 
account of full earnings' infla- 
tion, falls back into the 
scheme. Therefore, the transfer 
in must be bigger than the 
transfer out - and who is going 
to pay for the difference?” 

Who indeed? Life offices may 
well compensate for the 
charges they have deducted 
from the transfer values but. 
understandably, will be unwill- 
ing to pay for the vagaries of 
the company scheme transfer 
value system. 

■ Hard cases 

STB has yet to comment on 
compensation for cases where 
reinstatement is not possible. 

* Lexis - tel 071374 444S for the 
free fact sheet 


sales, and the spread (see 
below) is around 1 per cent 
Hie total cost of your invest- 
ment, including the stamp 
duty, is around 45 per cant - 
without any extras. (Note, 
thrmg h , that there is no stamp 
duty or buying commission on 
newly-issued shares.) 

Some brokers add extra fees 
for each deal, ranging from £1 
to £20 or more. No matter what 
they are called - whether com- 
pliance charges, contract 
charges or administration 
charges - it is money you must 
pay. 

■ The spread 

If there is one vaguely hidden 
cost of share dealing, it is the 
spread - the difference 
between the buying and selling 
price of shares. Basically, tikis 
is the charge you pay to the 
market-maker through whom 
your broker buys or sells your 
shares. 

If the price quoted in the FT 
when you sell shares is the 
same as when you bought 
them, you would actually 
make a loss. This figure is the 
mid-market price; buyers pay 
more, sellers get less. 

The key point to remember 
is that some shares are mare 
expensive than others. The 
highly-traded shares of big 
FT-SE companies have much 
narrower spreads than their 
smaller brethren. 


COOT CHICK 
Sendoe charge- Cost 

Joining fee ZZZZIIIIZZ Z HZ 
Mtnimurn deafing charge „ 

Dealing coneilttioti' «« ■,.■■■■. — , ,, 

Stamp duty 

Other charges 

Share price spread 
(96 difference betwean . 
buying & aaBng prices) — ._ >M> 
Portfolio management - - 

c ha rge e ■ «... n—., 

Nominee chargee ..... , 

Rate of Internet on 
deposit nooount 

whether he has total discretion 
to buy and sell or whe th er you 
must be consulted first Any- 
one considering a portfolio 
management service should 
get a breakdown of all the fees 
and find out if these are In 
addition to normal dealing 
diarges. 

■ The future 

Rolling settlement and Crest 
are the main developments 
aimed at streamlining the way 
the stock exchange does busi- 
ness. But what couldmake the 
system more efficient for insti- 
tutional investors might be 


T he best way to mea- 
sure the spread is to 
look at the “touch" - 
the difference 
between the lowest buying 
price and highest selling price 
from different market-makers. 
Last Monday, British Telecom- 
munications was trading at 
385p387p - a difference of a 
little over 0.5 per emit Marks 
and Spencer, on 425p-427p, was 
a shade under <L5 per cent But 
Who’s Who publisher A.&S. 
Black, on 320p340p, had a dif- 
ference of 6 per cent And con- 
venience food store Cullens 
trade! at I2p-l&5p, a difference 
of 12 per cent 

Some brokers point out that 
they negotiate -prices with the 
market-maker, whereafc 
cheaper execution brokers may 
simply deal at the prices they 
see on their computer screens. 

■ Management costs 
People who want their broker 
to act as investment manager 
will, inevitably, have to pay for 
the service. Typically, there 
win be an annual fee, based an 
the value of your portfolio, in 
the region of 0 JS per cent to 1.5 
per cent There might be a slid- 
ing percentage scale, with the 
rate falling on the top tiers of 
the portfolio. There could also 

be minimum and marimnin 
charges. Alternatively, there 
may be fixed fees. 

The broker might have two 
fee scales, depending on 


Crest Is likely to eliminate 
most share certificates; 
although private Investors can 
have these if they want Even 
before Crest, though, five^ay 
rolling settlement could make 
it difficult for certificate Judd- 
ers to settle in time, so inves- 
tors will be offered the chance 
of a longer settlement period.. 
Thus, a two-tier market is 
likely to develop. If you want 
share ce r tifi c ate s and a longer 
settlement time, you are likely 
to pay more for the privilege. 

There is a fear, though, that 
even those who join fully in 
the new system could be faced 
with a higher bilL This is 
because investors are, almost 
certainly, going to have to hold 
shares tn a nominee account 

The nominee system is well 
established and cuts down 
delays In settling. There is no 
need to send certificates and 
stock- transfer forms through 
the post Some brokers make- 
no charge for a nominee 
account; others may levy £10 
or £20 a year for each holding, 
or perhaps a flat annual fee of 
£100. 

Nominee costs will become a 
new factor in deciding which 
broker's charges are most 
suited to how you invest in 
shares. Another will be the 
increased use of deposit 
accounts, to which a broker 
has access, to pay for deals. 
But investors will need to 
make sure such an account 
pays a competitive rate of 
interest An uncompetitive rate 
would, effectively, be a hidden 
cost of using the broker. 

Anthony Bailey 



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I 







WEEKEND FT IX 



As I cannot attend the »nnm»i 


in which I have an inves tm ent , 
I have always completed and 
returned the proxy voting 
forms authorising the “chair- 
man of the meeting” to vote 
according to the wishes I 
express. 

In view of the article by 
David Wighton, “Power of the 
shareholder" (FT, April 9), It 
would appear that a prosy 
vote will be used only when 
those present at the meeting 
demand a polL 

If tins is correct, it would 
seem that such a vote would 
be of little use except where 
matters of contention arise. 

■ You are correct to say that 
proxy votes are used only 
when a show of proves 
indecisive or goes against the 
resolution. 

But you could always 
authorise a proxy, other than 
the chairman or the meeting, 
to vote according to your 
wishes. (Answer by Murray 
Johnstone Personal Asset Man- 
agement). 

A matter of 
wording 

I have inherited a piece of 
freehold land from an axmt. 
She inherited thta from her 
husband but died before a 
vesting assent could be made 
in her favour. 

An assent is now being made 
in order to vest the land in my 
aunt before, in turn, tt can be 
vested in me. but I am query- 
ing the wording. It says: "The 
executors hereby assent iso the 
freehold land (described) hav- 
ing been vested in Mary Smith 
who died on January 5th 
1994...” 

But the land was not vested 
in her, was it? Should the 
wording be ehawg wi in order 
to give good title? 

■ As, of course, it is not possi- 
ble far a dead person to have 
property vested in them, the 
correct procedure, in our opin- 
ion, would be far the executors 
of your und e to rnumnt to the 


Proxies that really mean nothing 

O&A 


BRIEFCASE 


V- an tm axqpttf bf mo 
nmwtdM in 


ffwiew Bm tor a» soma atari to tme 
eakims. At tnq&a am ba u»n i d ty putt 


land being vested in yourself 
Your aunt need not be men- 
tioned in any vesting docu- 
ment. (Answer by Murray 
Johnstone). 

First, go to 
a library... 

Where Federal Reserve-backed 
zero coupon bands are bought 
in the US bond market by a 
UK Investor, is the original 
capital cost in sterling indexed 
up from the date of purchase 
to toe date of disposal, using 
the usual UK indertn^ factors? 

Assuming the answer to be 
yes, is the remaining gain 
regarded for tax purposes as a 
capital gain (eligible to be mit- 
igated to the extent of the 
unused CGT exemp- 

tion) or is it regarded as 
income and taxed accordingly 
in its entirety? 

■ First, you will really have to 
spend same time in a reference 
Hbrary. There, you should look 
at the income tax rules for 
deep-discount securities (as set 
out in paragraph 4 of schedule 
4 to tiie Income and Corpora- 
tion Taxes Act 1988) in order to 
calculate the accrued income 
assessable under case IV of 
schedule D. 

You will find this informa- 
tion in one of the multi-vol- 
ume, loose-leaf tax works such 
as the British Tax Encyclopae- 


dia or Simon’s Taxes. It is 
rather a pity, though, that you 
(apparently) decided to make 
this type cf investment with- 
out investigating the income 
tax consequences beforehand. 

Once you have calculated 
the case IV figure, the capital 
gains calculation is relatively 
straightforward, as you will 
see from section 118 of the Tax- 
ation of Chargeable Gains Act 

1992. 

Yon simply deduct toe case 
IV figure from the sale pro- 
ceeds and than no\ wtlato the 
chargeable gain (or allowable 
loss) in the usual way. 

Expatriates 
must pay 

I have lived in Cfreece for 15 
years and have no intention of 
re turnin g in the foreseeable 
future. 

My savings (In sterling) are 
In a bank deposit account but 
l am looking for more attrac- 
tive returns on this money. 
Investment trusts seem an 
attractive long-term proposi- 
tion. 

As an expatriate. 1 am not 
liable for UK Income and capi- 
tal gains tax. Should I opt for 
UK-based or affidtore trusts? 

In other words. Is there any 
disadvantage (as far as United 
Kingdom taxes are concerned) 
in investing in UK trusts as 
opposed to offshore trusts? 

■ You are wrong in saying: 
“As an expatriate, I am not lia- 
ble for UK incnma tax.” Non- 
residents are basically liable to 
UK tax on income derived from 
the UK although they are 
Mwnf l from UK rapttfll gains 
tax. And your UK bank inter- 
est is exempt from UK tax by 
virtue of article VI(1) of the 
Greece-UK double taxation 

m n u an U wi 

As a nonresident Common- 
wealth gjtigpu , you are wntttiaH 


to a personal allowance against 
your UK income tax liability 
each year. For 1994-95 (as for 
199293 and 1993-94), toe basic 
personal allowance is £3.445. 

Since, clearly, that will 
exceed 125 per cent of your pro- 
spective UK dividends, on an 
investment of up to £8,000, you 
would, effectively, be exempt 
from tax an your UK dividends 
and would be able to claim 
payment of the 25 per cent tax 
credit carried by each divi- 
dend.' 

Therefore, the residual disad- 
vantage of bivps H wg in the UK 
(so far as tax is concerned) 
would simply be that you 
would have to wait for your 
tax credits to be paid to you - 
although yon probably could 
™in> instalment claims during 
Mrii >ax year (depending upon 
toe timing of the dividends, 
etc). 

We cannot, however, give 
investment advice fin view of 
the Financial Services Act 
1988). 

Tax treatment 
of dividends 

My stepmother died on April 
30 last year and my brother 
and I are her principal benefi- 
ciaries. 

A probate valuation, pre- 
pared by stockbrokers, showed 
income due to her on stocks 
which had gone ex-dividend 
before April 30. This income 
was capitalised as part of her 
estate and inheritance tax was 
paid on the total, including 
income. 

Since the income was not 
received until after April 30, 
though, as executor I Includ e d 
it in the income tax ret ur n I 
prepared for her for toe period 
April 6-30 1993. But toe TwinnA 
Revenue refused to take 
accou nt of it In calculating a 
tax refund for that period on 


toe ground that it had not 
been received by the time of 
her death. I accepted tins rul- 
ing aim assume that tt is cor- 
rect 

I am concerned about the 
tax treatment of tin? fawnw 
now. The ffividends have come 
to my brother and me, 
although as part of the capital 
of the estate. 

It seems to me, therefore, 
that we should not include tt 
in our tax returns as part of 
our income for the year just 
ending. Am I right? 

■ Ask your stepmother's tax 
office for the free pamphlet 
HM5 (What happens when 
someone dies). 

We are surprised that toe 
officer who (correctly) deleted 


the postdeath dividends from 
the pre-death claim did not 
even bother to tell yon that 
this halpft il leaflet printed 

You might wish to send a 
formal protest on this point to 
the district inspector (whose 
name should be printed on the 
tax office's letterhead). 

Yon will see from the IB45 
that, broadly speaking: 

L Half of each dividend paid 
after your ste pm other's d e ath 
forms part of your own income 
of 199894. and the other half 
forms part of your brother's 
income. 

2. A measure of relief from 
higher-rate tax will be due to 
each of you in respect of the 
inheritance tax that is attribut- 
able to those dividends (accord- 


ing to an arbitrary formula)- 
3, As executor, you should 
issue tax certificates RlSSE to 
your brother and to yourself 
(as beneficiaries) in respect of 
the dividends paid between 
your stepmother's death and 
the winding-up of her estate. 

New insurer, 
same cover 

I live in a leasehold fiat Up to 
now, the landlord has insured 
the building with Commercial 
Union. Now, presumably 
because it is cheaper, he has 
suggested cover with the IG1 
Insurance Company Ltd, of 
which 1 have never heard. Is H 
a reputable concern? 


■ The Association of British 
Insurers says IGI is part of the 
AC1 UK Holdings insurance 
group and is an authorised 
British insurance company. 
You and your fellow lease-hold- 
ers are. therefore, getting the 
same protection as you had 
with Commercial Union. As 
you say, no doubt the policy 
was transferred because of 
cost. (Answer by Murray John- 
stone). 

it* 

■ CGT indexation factors 
The example accompanying the 
April CGT indexation factors 
on page IX of the Weekend FT 
last uxek may have confused 
some readers. 

It should have react "Suppose 
you bought some shares for 
£6,000 in September 19S5 and 
sold them in April 1994 for 
£13,000. Multiplying the origi- 
nal cost by the September 19S5 
figure of 1.511 ghvs a total of 
£9,060." 


MEW UNIT TRUST LAUNCHES 




rm 

pb* 


W*d % Oat teal. 


Stangt — Qarga ouaUa PS* - MMBWoi - Ctaqm mtda PEP - 
toner ImL Mai Anal Mw 


Mtmnuln SDKOl OBH - 

fanst Qrscoimt Punod 
s % 


Portftflo ( 071 638 0806} 

international growth 0 No Mo 5.0* 1.2 No 1,000 nfe nfc nfe itfa l 3Q/V94- 17/6/94 

Portfolio is capitalising on the success of Its top-perf ormin g Fund of Funds trust by applying the same principles to emerging markets. 

■ Latin Amer ica Fund 

Sam & Prosper (0800 282101) 

ttamationd growth 0 No Yes 55 1.5 No 1,000 n/a n/a n/a n/a “ 14/5/94-3/6/94 

Hot on the heels of the launch last year of two S&P Far East funds comes this. Regional emerging market funds are riskier than global ones 
"Discounts for purchases at £5.000 plus on sS ettng scale. SFIxod Initial price otSOp. "Initial charge 4.5% on C7.000-C2.899; 3.5 per cent on C3.000 and Jboiw. 


NEW INVESTMENT TRUST LAUNCHES 


Uraoar fftfaphaaN 


— Ttogn — — Oman K3> tattc PEP — 

tew Hnttnum MHman Annual Wanum Annual 
SB* YWd PEP Swings Pncc MW must Otangn last Chang* 

Dn « OW0 Scheme R P £ % £ % 


Oder Pcnu 


N Johnson Fry European If tHfUas 

Johnson Fry (071 321 0220) 

Smflfi New Cout spit Capital No 30 s% Ybs No lOOp 

Pan-European version of Johnson' Fry's two Ngh-yiekfog UK utSttaa trusts, launched last year 


n/a 3.000 0.696 3,000 £30 16/5/94-7/6/94 


Schroder Investment Management (0800 526535) 

Smith New Court Japan IS IQOf n/a No Yes 100p 95.5p 2,000 1% nta n'a 7/6/94-30/6/94 

General Japanese fund from the Schroder stable, which already runs several Japanese unit trusts 


N The itoray Joh n a tnn e Acorn Trust launct* hma be en poatpowd. 


Fixed - for a fortnight 


Fixed-rate investment 
accounts are not as common as 
fixed-rate mortgages but they 
give investors the certainty of 
knowing what their income 
will be, writes Scheherazade 
Daneshkhu, Yet, few investors 
would feel happy firing their 
Income, only to find interest 
rates moving up. 

A few weeks ago, Halifax 
announced it was increasing 
the rates on Stepped Income 
Reserve. Launched in Febru- 
ary, this five-year, fixed-term 
investment pays a guaranteed 
return (on a £2,000 minimum) 
which increases each year. The 


new rates start at 6.5 per cent 
gross in year one and rise to 
10.5 per emit In year five. 

Pushing up these rates 
might seem like good news - 
but not far investors who 
derided to fix at “new" rates 
offered only two weeks earlier. 
And those rates - issued at the 
end of April - replaced ones 
issued only nine days before. 

The recent turbulence in the 
bond markets accounts for all 
toe activity, but the message 
must be that this is not a good 
time to fix returns an invest- 
ments. As Graham Bowley 
explains on page VI, the mar- 


kets expect inflation and inter- 
est rates to rise. If that hap- 
pens, investors will not want 
to be locked into relatively low 
investment rates. 

By the same token, it is stffl 
a good idea to. fix mortgage 
payments, although only if 
you get a good rate. The num- 
ber of offers Is dwindling fast 
and many are dprfdediy unap- 
pealing. Cheltenham & 
Gloucester yesterday with- 
drew its 8.49 per cent, five- 
year fixed-r ate m ortgage but 
Lloyds and TSB have one at 
8JJ9 per cent, p uttin g Halifax's 
9.25 in the shade. 





StAHX£T*rg&. 

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MINDING YOUR OWN BUSINESS 


How to sell a goldfield 

Clive Fewins visits a company which presents other people's sales pitches 


company still managed to make a 20 
per cent profit on the worldwide 
roadshow. Bridgland and Taylor 
each spent three weeks on the wing 
“leap hogging" each other on the 
tour of 16 locations from Sydney to 
Denver. In each city one of the two 
supervised the technical side of the 
presentation. The roadshow went 
without a hitch, earning Creation 
Station valuable kudos in a busi- 
ness which relies on reputation. 

“We certainly haH not handled a 
job approaching that size before, 
and it wQl probably be quite a tong 
time before we gain another one 
quite as big,” said Bridgland. “Nev- 
ertheless we are optimistic about 
more business from some big names 
such as Rank Xerox, Rowenta 
Domestic Appliances, and a major 
pharmaceutical company. 

“We have sold and installed two 
of our complete VideoShow systems 
for two major com panies They now 
use the equipment for presentations 
to their clients r eta in us as 
advisers." 

B usiness was not always so good. 
Two years ago Bridgland - who is 
the first to admit he has no finan- 
cial sitffls - was in a crisis. He was 
paying off a £10.000 start-up loan he 
had negotiated with Mi dland Bank 
when he started Creation Station in 
November 1988, and wanted to 
uptafff their VideoShow presenta- 
tion equipment to keep ahead of the 
competition. 

The problem, as ever, was cash- 


flow. “Things were not desperate 
but they were certainly uncomfort- 
ably tight." Bridgland said. “We had 
resorted to factoring to try and 
bring the money in and that was 
another expense we could have 
done without" 

Bridgland resolved the crisis in 
typical fashion: grasping at an 
opportunity. At a family gathering 
he bumped into a cousin he had not 
seen for eight years - Richard Sam- 
son. who runs two garages in the 
south of England. He became com- 
pany secretary and spends one day 
a fortnight at Creation Station, con- 
trols the books, chases creditors, 
and deals with the bank. 

“Richard is brilliant," Bri dgland 
said. “His arrival marked a turning 
point in the company.” 

Since then expansion has been 
constant, with new staff being 
added at strategic intervals. While 
Bridgland and Taylor were away on 
the Ashanti Goldfields exercise cre- 
ative director Andy Morrison was 
away on a job in America and for 
more than three weeks Sharon Grif- 
fin. 23, who had been with the com- 
pany only nine months, kept it run- 
ning with the help of Richard 

Samson 

“Overall our policy is one of spe- 
cialisation, not diversification." said 
Bridgland. “Creation Station has a 
small menu of seductive items 
rather than a huge selection of 
mediocre dishes." 

Turnover peaked at £300.000 last 


Horticold creditors 
told of fresh start 


P aul Bridgland recruited 
the fifth, and latest, 
member of his staff in a 
computer shop in Guild- 
ford, Surrey on a Satur- 
day morning. Bridgland was 
looking at games software with his 
nine-year-old son when he was 
struck by the manner and the 
knowledge of the young man who 
served them. 

He took Andr ew Scott into a cor- 
ner and offered the 18-year-old a job 
in his business presentation 
company. 

Tt may seem a rather bi z ar re way 
of recruiting staff but file three oth- 
ers arrived in similarly unusual 
ways,” said Bridgland. 35, managing 
director of Guildfoni-based Creation 
Station. “I am not a gambler but I 
certainly would call myself an 
opportunist” 

Bridgland and Ms right -hand man 
Guy Taylor were the people behind 
the worldwide presentation that 
preceded the recent successful flota- 
tion of the $44 0m Ghana-based 
Ashanti Goldfields share offer. 
Janies Capel, which acted as “global 
bookrunners” for the launch, and 
Morgan Grenfell, financial advisor 
to Ashanti, chose Creation Station 
for the job. 

“I like to think it was our record 
over 5 % years that gained us the 
contract, but Fm sure it was also 
the hi ghly individual talents of our 
emai] team,” said Bridgland. 

The team has no graduates 
among its ranks. But at its head is a 
man who, after an involuntary exit 
from public school, joined and quit 
the army, travelled all over Europe, 
worked as a steward for Laker Air- 
ways for three years, became a 
painter and decorator, sold audio-vi- 
sual equipment for six months, then 
retrained (he loathed his TOPS 
course) in computer programming. 

After this Bridgland de c i ded his 
fate lay in selling. First he sold 
insurance, then video presentations 
for another company before foun- 
ding Creation Station at the age of 
29. 

Taylor’s cv is not as exotic, but it 
is nevertheless interesting, hi his 33 
years he has trained at art college, 
been a ship's photographer, a deck- 
hand in Australia, a photoprocess- 
ing salesman and worked on the 
production side in an advertising 
agency. 

The Ashanti Goldfields launch 
was worth £50,000 to Creation Sta- 
tion. Of that £20.000 went on hiring 
teams of subcontractors to handle 
the European presentation, but the 


H orticold, which supplies 
specialist cooling equip- 
ment for fruit and vegeta- 
bles and was featured in a Minding 
Your Own Business article by 
David Spark In October, was put 
into administrative receivership by 
the Bank of Scotland in February, 
owing creditors £350,000. 

The receiver, Nick O'Reilly of 
Rothman Pantall, says he expects 
to recover £150,000. Ian White and 
Barry Cooper of Horticold are 
working to restore the business. 
White says they have a full order 
book to July and plan to make fur- 
ther repayments. They attribute 
file problems to mistaken estimates 
and an £80,000 bad. debt in Spain. 


O’Reilly says he found the busi- 
ness’s main asset was £190,000 
worth of work in progress. To 
recover as mnch as possible of this, 
he sold the tangible assets to Coo- 
per and White for £40.000 and 
received a guarantee that £80.000 
from the £190,000 would be paid to 
him by May 31. He has received 
£55.000 and expects this to rise to 
£110,000, leaving only the Spanish 
debt nnrecovered. 

The Insolvency Act allows direc- 
tors to make a fresh start if they 
acquire their company’s assets and 
inform the creditors. Cooper says: 
“We have contacted all the credi- 
tors and are continuing to trade 
with most of them.” 


year, though net profit, at just over 
£254)00. was down, due to purchas- 
ing of equip ment. Constant updat- 
ing of both hardware and software 
has been absolutely vital, says 
Bridgland. The latest purchases are 
the four Pentium 90 pcs with 17 
inch monitors Bridgland has just 
bought at a total cost of £14.000. 

“They are extremely fast.” Bridg- 
land said. They mean we can show 
a whole range of eager designs rap- 
idly to the cheat who is visiting us 
and may have an boor before mov- 
ing on to see what the competition 
has to offer.” 

At Creation Station. Morrison 
tries to put as much effort Into 
these demonstrations to potential 
clients as the team does into the 
presentations that are their prod- 
ucts. The emphasis is on the adapt- 
ability and cost -effectiveness of the 
VideoShow graphics. 

“Clients are always impressed by 
tbe speed and cheapness with 
which our system will Like printed 
material and scan it into a presenta- 
tion.” Bridgland said. “We also have 
a wealth of royalty-free stock origi- 
nation material immedia tely avail- 
able on CD-Rcm. 

Tbe abtotv to update Cast at the 
last minute is often vual for presen- 
tations ui the rmiwriai geld such as 
the .Ashanti Goldfields exercise, 
where figures are rhangrny all the 
tune. 

"By going for presentations for 
city-based companies and institu- 
tions I think we have uncovered a 
rich market. Two years ago this 
electronics graphics approach 
wculd have been far too modem for 
many city gents. But thing s are 
changing. We are talking to several 
more City-based clients such as Nat- 
West Investments and Merrill 
Lynch and are very optimistic that 
we now have credibility in the 
financial community. 

There are just two potential hur- 
dles. One is being too specialist, so 
we have taker, on the distributor- 
ship of EasyShow software, which 
should earn the company about 
£75.000 a >-ear. The other is avoiding 
the temptation to move to a plush 
suite in town after a good perfor- 
mance like the Ashanti Goldfields 
operation. You can easily do that, 
then hit a quiet spell and suddenly 
face huge problems. Tbe other fear 
is of a big presentation going 
wrong. We haven't had one yet but 
there is always the possibility” 

■ Creation Station. Menrnc Busi- 
ness Centre, Merrotc Lane. Guildford 
GU4 7WA- 04S245858S. 



Creative types: clockwise from top left, Andrew Scott. Andy Morrison, Sharon Griffin, Paul Bridgiand. tfcwThytor, Richard 9amsoo 


MINDING YOUR OWN BUSINESS 

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Who needs 



Continued from Page I tore." ' 

“Who needs him?" says 

1988-91.” says Alexander Anninsky, irritably rehearsing 


Tsipko. a leading social critic 
and philosopher. “In these 
years, rally his books were 
active in the struggle. Now, his 
version of anti-communism has 
lost its influence, since as a 
result of the break-up of coun- 
try there has arisen a nostalgia 
fra the past, for what has been 
lost And in these conditions 
his active dislike for commu- 
nism may not be comprehensi- 
ble to people." 

He may thus, soon, be 
ignored, or simply judged on 
his literary merit, which he 
might well say he preferred. 

Many of his admirers - such 
as Senokossov and Anninsky - 
are not fans of his later writ- 
ing: Senokossov says he cannot 
read August 1914, the first of 
the novels conceived as the 
“Red Wheel” cycle. “The lan- 
guage is so deliberately 
archaic, of a kind no one 
speaks or spoke," be says. Oth- 
ers would even query whether 
the early novels - loan Deni- 
sovich. First Circle, Cancer 
Ward - had real literary merit, 
as opposed to political and 
moral Importance. 

His main literary defender in 
Russia is Alla Latynina. Rus- 
sian literature editor at the 
weekly Uteratumaya Canto - 
ironically, the organ of the 
Soviet (now Russian) writers’ 
union from which he was 
expelled in the late 1960s, 

Latynina, in her cluttered 
office, says that "he immedi- 
ately stood out as a master and 
was recognised ns such by his 
contemporaries. Mtmy camp 
inmates wroto about their 
experiences: many were very 
fine books. But why b;is Sol- 
zhenitsyn remained supreme? 
Because he is a Rreat writer, to 
the great Russian tradition. 
Why does the Gulag stand out 
as an account of the camps? 
Because it was not just a list Of 
horrors, but a work of liters- 


the Nezavfadmaya question. “1 
need him, I, L We all need him, 
to conditions of freedom as 
much as in conditions of lack 
of freedom. He is there to tall 
us of crar past, a vary large 
part of it, and he can give 
unique expression to it. I need 
him." 

Solzhenitsyn has been ren- 
dered into statuary - as much 
by the western media and aca- 
deme as by the Soviet Commu- 
nist Party. But, like the famous 


‘We all need him, 
in conditions of 
freedom as much 
as in conditions of 
lack of freedom . 1 


statue of the Commendatore to 
Don Giovanni, he can and 
probably will revive - to call 
sinners to account and to 
reveal a fundamentalist virion 
of good and evil. 

"If we, the creators of art," 
he wrote a year ago, "win obe- 
diently submit to this down-, 
ward stole, if we cease to how 
dear the great cultural tradi- 
tions of the foregoing centurito 
together with the spiritual 
foundations from which It 
grew, we will be contributing 
to a highly dangerous foil of 
the human spirit on earth, to a 
degeneration of man Into some 
kind of lower stats, closer to 
the animal world. 0 

This is a a virion of the artist 
as a. saviour of mankind: and 
Solzhenitsyn cleaves to that 
The man who returned to Rus- 
sia yesterday retains the 
power, and probably the will, 
to challenge, to more and to 
disturb. He remains a haro, in 
the classic, and perhaps tragic. 


sense. 


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A ccording to those in 
Britain known as 
“Eurasceptics" there is, 
all over the European 
tWon, some kind of nationalistic 
undercurrent which needs only to 
be aroused from its present slum- 
ber to recognise the threat posed by 
Brussels imperialism. 

The trouble is that there is no 
single rallying can that could unite 
Euro seep tics of the world. In 
France an article by . Maurice 
Allais, the French Nobel prize win- 
ner for economics, in le Figaro a 
conple of weeks ago, made it dear 
where his country's nny j i^py lay. 
“France should not have accepted a 
laisser faire Europe,” he wrote. 
There should be a Europe that 
could protect the Union's social 
achievements. The poorest in the 
land could not be deprived of work 
by a bunch of Asiatics. 

There was a shortage of evidence 
to back the argument So here is 


As They Say in Europe/James Morgan 


Why Britain needs Britosceptics 


tome: France's imports from devel- 
op toff countries in Asia accounted 
for 7 per cent of its imports in 1992. 
The trade deficit with Asia was one 
third of l per cent of gross n^Honai 
product Amazing how that can 
dest roy whole sectors of French 
industry and wipe out 2m jobs. 

Allais* Enroscepticism is hard to 
reconci le with that of those on 
Britain's Conservative nationalistic 
right who see a commitment to 
anything beyond a free trade area 
as treason. (The paradox is odd: 
Conservative nationalism histori- 
cally has not beau associated with 
free trade. Nationalism itself is the 
antithesis of market liberalism 


which should include the free 
movement of labour.) 

Each country has its European 
agenda. And each has its anti-Euro- 
peans who disagree with anti-Euro- 
peans elsewhere. In Austria, which 
is about to join the Union, Der 
Standard asked the public what 
areas needed most protection. “Sov- 
ereignty” was not mentioned. The 
only thing that mattered to more 
than half those polled was the need 
to keep freight off the road and put 
it on to rafl. 

The British, and occasionally the 
French, define the European chal- 
lenge in abstract terms such as 
“ so vereignty”. For the rest, Euro- 


pean questions centre on practical 
arrangements tor tariffs, lorries 
and workplace problems. The Brit- 
ish would say that Brussels over- 
rides national sovereignty in these 
areas,- but for continental Euro- 
peans, the concept is meaningless. 
It melts hi your band the moment 
you grasp it. In theory Austria 
could exercise its sovereignty in 
the matter of transit freight, in 
practice that is scarcely credible. 
The British alone believe that sepa- 
rate choices can be made, that 
untrammelled independence Is 
obtainable. 

So why, then, the fuss In Ger- 
many about its choice of president 


this week? If a national govern- 
ment has so little power, bow can 
voting for a powerless president 
matter? The election of Roman Her- 
zog as president of Germany gener- 
ated even more soul-searching than 
is normal at this epicentre of world 
soul-searching. 

The Sttddeutsche Zeiticng rumi- 
nated at length. “Is it really true 
that the united German people are 
content, after the nniform-and-mnr- 
der fetishist A.IL, to welcome a 
fresh, new bourgeois-democratic 
president every five years? Is there 
not a craving for a bit of K&nig. 
Baser, Gtoriairictoria?" 

The answer was revealing: 


“Looking back we must sigh with 
relief: we were lucky. The German 
people, Hitler-less thanks to others, 

were never asked.” A constitution 
was imposed and so: “Now our 
crowned heads can be stolen from 
us - we remain experienced and 
knowledgeable and on balance com- 
fortable with our presidents." 

Since the Germans have such a 
cosy concept of their state and its 
leaders, it is not surprising that 
they do not tear for its existence. It 
Is much easier to undermine a pal- 
ace than a suburban villa. The Brit- 
ish possess so much “Queen, Parlia- 
ment, Gloruwictoria ” that the power 
of Brussels Is seen as subversive. 


One would think from some of this 
week's pronouncements that the 
freedom to Install seat belts in bus- 
ses was part of Magna Carta. 

The concept of Britishness Is con- 
centrated on the structure of the 
state. The nation's great traditions 
are not to be found in simple, popu- 
lar matters such as food, drink, 
dress and useful manufactured 
goods. Even so-called common law 
Is impenetrable to the common 
man. So tt Is that any infringement 
of the rights of political Institu- 
tions seems to destroy the very 
heart of nationhood. Remove the 
Crown and the power of Westmin- 
ster and out goes everything from 
the state opening of parliament to 
Royal Ascot. Remove its equiva- 
lents in Germany, France or Italy, 
little is lost and much might be 
gained. Britain needs some Britos- 
ceptics rather than Eurosceptics. 

■ James Morgan is economics corre- 
spondent of the BBC World Service. 



9 



Despatches /Robert Thomson 


Looking 
for trouble 
on the 


Y angtze 


T he police at the 
Wuhan ferry termi- 
nal were distracted 
by their boredom. 
Confronted each 
day by a swirl of humanity 
struggling through a small 
turnstile, they had conceded 
long ago that they were hardly 
able to make a difference. They 
herded passengers into a kind 
of line, only to see it dissolve 
moments later. 

They looked out at a crowd 
of scruffy peasant boys, of 
yomig provincial women with 
hairstyles that went out of 
fashion in Beijing last year, 
and of old men who remained 
faithful to the Mao faiuir. For 
the police, chaos was common- 
place. 

From Wuhan, on the Yang-, 
tze, the ferries head downriver 
as far as Shanghai and upriver 
to Chongqing. Beyond the 
turnstile, it was a sprint down 
the gangway for the best berth 
an an overcrowded boat About 
half the rushing passengers 
were bouncing white, rainproof 
sacks that once held fertiliser, 
but had a second life as a 
travel bag. These were farm 
folk on the way home, proba- 
bly a long bus ride from the 
port that was their destination 
aboard the Jiangyu No 4. 

Hie boat had three classes, 
starting at second class and 
working down. In between 
each class, on the stairways 
and the decks, were dusters of 
passengers, cracking sunflower 
seeds with teeth and tongue, 
and preparing for discomfort 
that, by Chinese standards, 
was no great test of endurance 
or patience. For those with 
tickets through to Chongqing, 
it was four days of struggle 
against the currents, and a 
deckside seat to an unsched- 
uled, tragic enterta inment 


After a few hours of gilding 
through the water, the first of 
the public announcements 
came. It was the urging voice 
of public announcements in 
China of the past, hat was 
offering something different 
None of the harsh rhetoric, 
just hard sen - tickets for a 
“Hong Kong action film with 
romance”.. They showed a few 
different *Hm.« but the spiel 
was much the same: a film 
made in Hong Kong, with 
action and romance. 

There was enough violence 
off-screen in central China for 
the taste of most passengers. 
Urban Chinese worry aloud 
about their safety outside the 
security of the big cities. In 
their afternoon tabloid s, they 
read about marauding gangs 
and random violence. They 
talk about the aimlBgg young 
who have no values and wifi 
do anything for a price. 

To keep the peace on the 
boat, there are Marine Police. 
Their green uniform looks a lit- 
tle like that of the Gong An, 
the real police, but the shoul- 
der patch and the manne r are 
that of an aspiring policeman 
refected by a more discerning 
force. 

At around midnight, the 
ferry berthed at Shashi, liter- 
ally Sand City, once a Japanese 
treaty port that the other for- 
eign powers did not bother to 
contest There was a crowd of 
young porters, with bamboo 
poles in hand, hustling for a 

mmmisidnn. 

A few porters apparently 
tried to jump aboard the boat, 
and the sounds of a brawl ech- 
oed through the cabins. A 
marine policeman, who 
claimed that lives were in dan- 
ger, opened fire. He shot one 
man in the leg and another in 
the hand. The shouting 



stopped for a moment and the 
recriminations bpg an. 

A mob gathered on the 
wharf, and the passengers 
peered over the guard rails. 
The rumours iwnMpKeii test A 
few men had been killed- The 
labourers’ friends were on 
their way to ransack the boat 
Like so much that happens in 
China, even for those a few 
metres from the event, the 
reality was quickly retrans- 
lated and distorted by a dozen 
dialects. 

The outcome became obvious 
when the front lounge-room of 
the boat was unlocked, hi the 
best Chinese traditions, there 
was to be a meeting. The boat’s 
crew, the real police, and local 
port officials were given cups 
of tea and began attempting to 
apportion blame In a way that 
would leave them all blame- 
less. 

They talked for nine hours, 
and apparently happy that 


their duty had been done, 
there were no arrests. Two 
police joined the boat, taking a 
second rings cabin far them- 
selves, in the interests of law 
and order. 

For the crew, the fear was 
that word would, spread 
upriver, and there would he 
trouble at another of the river 
stops. Each time the boat slid 
against a wharf, the two real 
police would stroll off, with 
hands in pockets, waiting 
edgfly for more violence. 

A t each stop, the 
passengers in 
white jogging 
shoes, increas- 
ingly the pre- 
ferred footwear of rural Chi- 
nese, walked off into the day or 
the night At one small port 
hundreds of grabbled labourers 
were hauling coal from a heap 
to a barge, with each of the 
two baskets on a bamboo pole 


weighed by a supervisor. It 
stirred images of the mobilised 
mnngpg who built Mao's dams 
and bridges in the 1950s and 
the Great Wall a few dynasties 
earlier. 

Those scenes of toil held 
nothing for the passengers, 
who were still being offered 
Hong Kong films with action 
and romance. Then, in the 
final hours of the journey, the 
loudspeakers turned to pop 
versions of Cultural Revolution 
hits about Mao. the Great 
Helmsman. The revival of 
these songs, which tell of Mao 
as the “Big Red Sun warming 
us all". Is part kitsch and part 
necessity. They were the songs 
that people sang, willingly or 
not, during the 1960s and 1970s, 
and stuck in the collective 
memory. Now, they are in 
karaoke collections. 

At Chongqing, the private 
minibus operators were 
waiting with loudspeakers and 


tunes of their own. The city, 
the wartime capital, is stfil a 
refuge from some of the wilder 
parts of the south-west it is 
also a place where the rumours 
gather. One taxi driver told a 
story about the increasingly 
potent blend of wealth and vio- 
lence. On a Chongqing bus, a 
young woman and man started 
a typical argument. It could 
have begun with him stepping 
on her foot but the origins are 
not important as it quickly 
became a matter of face. 

In the usual Chinese way, 
the insults became cruder and 
cruder, and neither would give 
way to the other. The woman 
dared the man to get off at the 
next stop, and he did. presum- 
ing that their argument would 
continue. She then walked 
over to a couple of out-of-town 
youths, and offered them 
money to rough up her oppo- 
nent. They accepted and the 
argument was ended. 


The Nature of Things /Clive Cookson 


Superbug 

scenario 


M edia hysteria 
about the flesh- 
eating superbug. 
Streptococcus A, 
has surpassed all previous 
medical scare stories. Legion- 
naire’s disease, meningitis, sal- 
monella and listeria could not 
produce headlines like this 
week's “Killer bug ate my 
face” and “Eaten alive”. 

Beneath the hype, however, 
there is scientific concern that 
acute infections - almost con- 
quered by antibiotics and other 
medical advances earlier this 
century - are re-emerging as a 
serious threat to public health. 

Streptococcus is one of the 
most common bacteria. Micro- 
biologists estimate that about 
one person in 10 is infected at 
any given time. Usually there 
are no symptoms: sometimes it 
produces a sore throat (“strep 
throat”). 

But streps can also cause a 
terrifying variety of diseases, 
depending on which toxins 
they release. They were 
responsible for two of the great 
killers of the pre-industrial 
world: pueperal (childbed) 
fever and scarlet fever. Streps 
can also bring meningitis or 
serious blood poisoning. 

The streps that newspapers 
have called flesh eaters cause a 
disease known officially as nec- 
ro Using fasciitis - thoug h this 

week’s best description of it 
was “galloping gangrene”. The 
bacteria release a toxic cocktail 
of enzymes which destroy mus- 
cles and the fibrous tissues 
around them. 

In the most severe cases, 
flesh can turn black and die at 
a rate of an inch per hour. The 
only hope of saving the patient 
is to carry out emergency sur- 
gery - cutting out the infected 
tissues - and give heavy doses 
of antibiotics. 

Microbiologists have recog- 
nised necro rising fasciitis for 
many years as an extremely 
rare complication of Strep A. 
According to the Public Health 
Laboratory Service there are 
about 10 cases a year but these 
normally occur in isolation, 
with no evidence of the infec- 
tion passing from one patient 
to another. 

So the medical alarm bells 
started to ring when doctors 


noticed an apparent cluster of 
cases in the Gloucester area. 
Seven people there have suf- 
fered from necrotising fasciitis 
this year, three of whom died. 
Did tills show tliat Strep A was 
becoming more contagious? 

Tests have shown that all 
the Gloucester cases were 
caused by genetically different 
sub-types or Strep A. The con- 
clusion is that the cluster was 
a tragic coincidence. 

Meanwhile all the publicity, 
combined with an alert from 
the PHLS, has brought to light 
more than a dozen recent cases 
of necrotisiug fasciitis else- 
where in Britain: altogether 1L 
deaths have been attributed to 
the disease in the UK this year. 

During the week the media 
shock waves spread to other 
countries, which began to 
examine their own Strep A sta- 
tistics. Australia, for example, 
reported 10 to IS cases a year 
of necrotlsing fasciitis, and 
Germany 30 to 40 a year - 
about half of whom (tied. 

But the disease is not offi- 
cially “notifiable” anywhere, 
so the figures are not reliable. 
The consensus is that lethal 
streps are slowly becoming 
more common worldwide. 

Scientists believe that speci- 
alised bacteria-infecting 
viruses called phages play an 
important role in bacterial evo- 
lution, carrying genes for viru- 
lence and toxin production 
between different strains and 
even different species. The 
forces driving the process 
remain a mystery, however. 

This week newspapers have 
almost certainly cried “plague" 
about the wrong bug. Staphylo- 
coccus bacteria already kill far 
more people than the streps 
and they have developed more 
resistance to antibiotics. 

No one knows what real 
superbugs, if any, are going to 
emerge. Streps are a remote 
possibility. A virulent staphy- 
lococcus resistant to all antibi- 
otics is rather more likely. But 
perhaps the microbiologists’ 
worst nightmare is a highly 
contagious new influenza virus 
causing a pandemic of pneumo- 
nia; it would not eat flesh but 
could drown millions in their 
own body fluids. Imagine the 
headlines then. 


Skiing round the world 

Guiltless 
in Seattle 


Arnie Wilson is searched for drugs 



Arme Wilson and Lucy Dicker 
are trying to ski every day of 
1994 on a roundrth&toorld expe- 
dition. They tided in America 
and Europe before moving to 
the Himalayas and Japan, This 
meek they returned to the US. 

W e have been 

body-searched - 
with disturbing 
thoroughness - 
for drags. When we arrived in 
Seattle on a section of our 
expedition that has taken us 
round the world in 23 days 

(Geneva-Delhi-Tokyo-Seattle- 

jCMcago-Los Angeles) sniffer 
#oge took too much Inter est to 
for comfort and we were 
:~*dected for a search”. 

; The only irregular Item in 
our luggage was a sealed Japa- 
Besc' iegumo which we had 
Pfophsed in a box aboard a 
W&t train thinking it was 
■"•Mniotic version of sushi. 
Bit Hie dogs had apparently 
op a whiff of narcotics, 
flaying felled to find any- 
ftfeg Inc riminating in OUT lug- 
immigration officers 
B *arched Lucy and me into 
fcpsnte cubicles and carried 
uid an Intimate search. 

They found nothing, of 
S 01 ®**- We can only put It 
a °* n to Manali, our Hlinala- 


e, where growing and 
r of cannabis is rife, 
pan, tiie violent rain 
it the summer ski area 
an in the Yamagata 
ire blew themselves 
be replaced by bright 
i. At last we could see 
re were skiing: quite a 
tial mountain with a 
drop to summer of 
much more to winter, 
n there Is too much 
r the resort to open), 
of the five Hits were 
>ws, two of which 
I dipping on detach- 
d grips a tricky bust- 
le fifth, to our relief; 
jonventional chairlift? 

ns to ski more than 

In six boors - more 

had managed to the 
six days. 

sts at tiie Pension Ya- 
rn Goryu Tooml (dose 

0 One, where part of 
Winter Olympics will 

1 and at the Gass an 
m, were a delight, and 
is such detidous food 
did not want to leave 
^sticks when we flew 
tlifornian ski resort or 
h in the spectacular 
ms. As ft turned out. 
se (tinne r was on the 
n Airlines menu. 


Lunch with the FT 

The safest bet for the Derby 

Michael Thompson-Noel meets Peter George , Ladbroke's chief executive 


78,ooo people. 

Not to 400 years, though, would you 
guess that George was also a book- 


N ext Wednesday, a group of 
valuable racehorses will 
careen round Epsom race- 
course, near London, to 
that blaze of colour, sweat and pag- 
eantry known as the En glish Derby. 
The owner of the winning horse win 
puff with pride, while the owners of 
the also-rans sag with disappoint- 
ment. But the real winner will be 
Pete- George - the World’s Biggest 
Bookmaker. 

to most countries, racehorse betting 
Is handled via government-run pari- 
mutuels, and nornmcndal bookmaking 
is heavily restricted or HlegaL 
But not to Britain, where off-track 
b ookmaker s rmn ihmuBmdn c4 betting 
shops. 

The leader is Ladbrdke, which calls 
itself the world's largest commercial 
off-track betting w gan isattan. R has 
o perations to Belgium, Ireland, the US 
and Argentina, as well as to Britain. 
As a result, Peter George, Ladbr oke’s 

chief executive since the start of the 
year, must be the world’s biggest 
bookie. He could even be the tallest 
(he is 6ft 5tn). 

If you met him, as 1 did. hi the 
Windows an the World r est auran t on 
the 28th floor of tiie Hilton Hotel in 
London’s Park Lane, you would guess 
he was a businessman. 

to part, he is an hotelier - Ladbroke 
ottos Hflton International (159 holds 
In 47 countries, bought for Him. to 
1987). It also owns tiie troubled Texas 
Homecare. Britain’s second-largest 
DIY and homecare retails-, and has a 
property division. AH up, it operates 
in nearly SO countries and employs 


maker. He is not fat He is not shifty. 
His jollity is calmly measured. His 
suits and ties are baring. He is erect 
arid frank-talking. 

Yet a bookie he Is. His father was a 
bookmaker and George, now 50. had 
worked for Ladbroke for more than 30 
years, mainly on the racing side, 
before gliding through on the tmridw 
rail to take the chief exBcutiveship 
when Cyril Stein, Ladbroke's charis- 
matic and controversial guiding 
spirit, retired early. 

Some bookmakers do not know a 
horse's head from its fundament. 
They are accountants, after all: 
experts at setting odds that lighten 
the punters’ pockets of mlllicms in the 
course of a working month. But 
George knows his way round a race- 
track. 

“Do you like racehorses?” I asked. 

“Sure,” said George. 

“Ever owned any?” 

“Not so far.” 

“Because of the exhorbitent cost?” 

“No, not the cost. I’ve sometimes 
talked about it, but there has never 
been the right sort of opportunity." 

“Do you like a bet yourself?” 

“Yes, but not often. I was at Ain tree 
for tiie Grand National and bad three 
bets, but they all went down.” 

“What’s your average stake?” 

“£100. 1 guess.” 

“And what Is your maximum?” 

“Stflinoo.” 

I rolled my eyes. 

The world’s biggest bookie said: 


“Oh, very well - call It £200.” 

“Tax in advance?" (A betting ploy 
that denotes confidence). 

“Yes, tax in advance.” 

Originally, Peter George wanted to 
join the Royal Air Force, but was too 
tall to ily. So he started with the 
family bookmaking firm, founded by 
his grand f ather. Later, to gain experi- 
ence, he went to Ladbroke and has 
been there ever since. At 26, he was 
Ladbroke's chief racecourse represen- 



tative - a period of “great fun”. The 
biggest bet he remembers handling 
was a businessman who lost £100,000. 

He joined the main Ladbroke board 
in 1&0 and became joint chief execu- 
tive three years ago. He Is a worka- 
holic, with no ride to him, and is 
described by colleagues as solid, 
shrewd and far-seeing. 

The world’s biggest bookie will 
watch next Wednesday’s English 
Derby as closely as anyone. 

“At Ladbroke, we are paying close 


attention to developments in interna- 
tional gambling,” says George, “espe- 
cially gaming - which means, primar- 
ily, casinos and gaming marhfnt»c Jn 
the US, above all, there is an explo- 
sion in new forms of gaming, espe- 
cially towards casino gaming : on Mis- 
sissippi-styie riverboats and on Indian 
reservations. 

“We operate four casinos in Hilton 
hotels, three in Puerto Rico and one 
to Aruba, and would like to have 
more.” Ladbroke used to operate 14 
UK casinos, which yielded fat profits, 
but, to its embarrassment, was 
stripped of its licences to 1979 for 
breaches of the rules deemed “dis- 
graceful". 

“It seems likely that classic off- 
track betting, such as betting on 
horses, is going to find it mare diffi- 
cult to compete with all this new gam- 
ing,” says George. “It has been seen 
in Australia already, and also in 
France. This would require a major 
re-think of Ladbroke’s strategy. 

“to addition, for the first time in 
many years, the British government 
will soon have a direct and vested 
interest to promoting gambling, via 
the UK national lottery.” (Ladbroke 
was a member of a consortium that 
applied to operate the lottery, but lost 
out this week when the licence was 
allocated). 

“In a way, the lottery will probably 
have a far smaller effect on general 
betting than if UK betting were based 
cm a pari-mutuel Many pari-mutuel 
bettors go strictly on numbers. It is 
the same with lotteries. And, in 
Ireland, they launched an extremely 



Peter George: not fet; not shifty 


successful national lottery which 
didn't have a big impact on betting 
shop business. 

“But there will be some impact on 
retail spending behaviour in Britain - 
perhaps on confectionery sales, 
maybe an tobacco sales, and undoubt- 
edly on the football pools.” Ladbroke 
owns Vernons, Britain's No 2 pools 
operator. 


c h an ge d virtually all its top manage- 
ment and thrown open its doors, 
abandoning the secrecy and 
cloak-and-dagger stuff that used to 
infuriate the City. 

As the millennium approaches, the 
international gambling business is 
likely to mutate as speedily and as 
unpredlctabiy - and possibly as prof- 
itably - as any branch of the leisure 
trade. With a lifetime’s espSenceS 
betting to call upon. 

George wdl survey developments 
raaly. At 6ft an, he is used foS? 
ting the action. 5001 





XII WEEKEND FT 


FASHION / HOW TO SPEND IT 



The vim and verve of V er sace 

Actress Elizabeth Hurley caused a sensation when she wore Versace to a film premiere in London 
recently. At his Milan palazzo, Lucia van der Post talks to the Italian couturier about his work 


G ianni Versace, 
47-years-old, 
Italian couturier 
to the rock and 
G3m star set, is 
used to brick-bats. Where Gior- 
gio Armani, that other icon of 
Italian raaW<w> l gets the fash- 
ion editors’ plaudits - “so 
refined, so restrained, so ele- 
gant" - Versace often leaves 
them gag ptng 

“Scarlet O ’Horror" shrieked 
a recent hBaHWwp “Tartwear" 
another one calls it, while “vul- 
gar”, “pornographic”, and 
“tatty" are epithets he has 
became inured to. 

He should care. On the day I 
visited him in his ravishing 

Milan palaTm . nmy the home 

of the Bizzoli family and now 
his home and office, his 
brother Santo (in charge of the 
counting house) interrupts to 
wave some figures at us. 

“Last Saturday,” he tells me, 
“we did the most business we 
have era: done in a single day 
in our shop on the Monte 
Napoleone.” Some L734.73m 
(£305,000) was taken at the 
tills. This is probably not 
unconnected with the fact that 
Elton John and Eric Clapton, 
two of Versace’s most ardent 
groupies, famously given to 
rock-star style shopping 
extravaganzas, were in town. 
Nevertheless, it is impressive 
evidence that, in spite of the 
fashion editors' sneers, some- 
one out there likes Versace. 

It is not just the rock and 
filmstars who keep Versace in 
pfliflgwM The small boy from 
Reggio Calabria who fell in 
love with designing (“Design- 
ing came to me," he tells ™ “I 
didn't have to move.") while 

w atching his mother s titching 

a little black dress in Reggio 
Calabria more than 40 years 
ago, these days ram mantis an 
empire that turns over £400m a 
year. 

In spite of the recession, 
sales in 1993 were up 8 per cent 
over the year before and now 
there is talk of floating the 
company. Currently it is fami - 
ly-owned, shared between him- 
self, his brother, Santo, and sis- 
ter, Donatella. He has bought 
back his own perfume from the 
Yves St Laurent corporation. 
His Versus range, although 
started only four years ago, 
turns ora L70bn a year and 
even as we speak sales expan- 
sion is planned in Russia and 

C hina . 

Santo seems confident that 
turnover can be doubled in the 
next three to four years and, in 
spite of the immense expense 
of launching a splendidly 
baroque-style marble palace 
shop two years ago, a new Ver- 
sace outlet (this time for Ver- 
sus, the younger range, and 
Istante, the . . . um . . . classic 
range) opens at 92 Brompton 
Road, London SW1 on June 16. 

His high-profile and interna- 
tional fame have all been 
achieved in an extraordinarily 
short time. For years he used 
to show just in Italy and at the 
ready-to-wear shows, and he 



■ Left From last summer’s 
collection - the sweetest of 
florals, beautifully {Minted on 
fine sfik chiffon, makes a 
defighfrd dress for sunny 
days 

■ Right Versace at Ws most 
classically playful - a 
combination of finest 

wool crepe, leather 
straps and skOful cut, 
undoubtedly erotic 
but above afl, fun 



did not embark on an haute 
couture collection until 1989. It 
was not a quiet debut Rhine- 
stone studded dungarees and 
jeans were not what Paris had 
in mind when thinking of 
haute couture. Paris was 
shocked “But it isn’t couture," 
they «flid as one. 

G ianni Versace was 
nnfazed. Chanel, he 
reminds me, was 
equally denigrated 
when she first took to the 
catwalk and look where her 
reputation is today. Today he 
is generally credited with hav- 
ing generated new excitement, 
of having given couture a 
much-needed shot-in-the-arm 
just when it seemed to have 
run out of steam. 

Versace himself believes in 
the importance of haute cou- 
ture. “ Couture has to update 
itself. It must be modem. If 
you do couture as I do it (mod- 
esty, you will have observed, is 


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not a Versace trait) and as 
Lagerfeld and Lacroix do it, 
then most certainly it has a 
place today. But that Balmain 
approach to couture - the huge 
hat, the stiff woman, that is so 
demode. 

“I use haute couture as a lab- 
oratory to experiment with 
new ideas. Because I am forced 
to do another collection I have 
to experiment and to change, 
to produce new ideas. There is 
a difference between a dress- 
maker and a designer who 
pushes forward into new areas. 

“Couture is also ray impor- 
tant for the craft - if we had 
no couture we would lose all 
those wonderful skills." 

And indeed even his most 
ardent critics never deny the 
skills that go into the Versace 
collections - the cut, the exqui- 
site embroideries and beading, 
the finish, the beautiful fab- 
rics. 

Diana V reeland, the great 
editor of American Vogue, was 
one of the first to recognise his 
talent For years she said she 
used to go to Italy expecting to 
find someone to take the inter- 
national stage but it wasn’t 
until she came upon the work 
of Versace that she thought 
she had found it “I have never 
seen anyone." she told him as 
she hugged him, “drape a dress 
so well and in such tittle time." 

He sees his clothes as 
vehicles which allow a woman 
to express herself and he cites 
Diana Vreeland as a marvel- 
lous example of a woman who 
made Versace clothes her own. 
“She was 80 years old.” he 
said, “and she used to wear a 
black sweater by Azeddine 
Alala and black leather pants 
of mine and she wore them tike 
no 20-year-old could wear 
them. 

“I want to go back to cut,” 
he says. "Diana Vreeland intro- 
duced me to the work of a won- 
derful English designer called 
Charles James - 'You know 
him? No? Oh, you must learn 
about him* - the inside of his 
dresses are as beautiful as the 
outside. I have never seen a 
French or American produce 
such beautifully made dresses. 
They are all about pure line 
and pure cut and this is what 
interests me now.” 



•wrt.' r 

Gianni Versace photographed by FBchwd Avedon 



This baroque print silk stilt is a Versace top-oeSer 


He is very respectful of the 
past: “When you are born in a 
place such as Calabria and 
there is beauty all around - a 
Roman bath, a Greek remain - 
you cannot help but be influ- 
enced by the classical past." 

Almost all his collections are 
filled with visual references to 
history - Grecian motifs, 
baroque images, Etruscan sym- 
bols, Medusa’s head. He loves 
to mix fabrics, juxtaposing 
leather with silk, cashmere 
with tweed, teaming jeans with 
brocade jackets, putting rhine- 
stones on dungarees. Looking 
back over his collections there 
are bewildering sources of 
inspiration - part happy 
hooker, part hippie, part punk, 
part Grecian goddess, part 


sweet virgin - the references 
are endless and varied. 

Each collection tends to 
explore a theme which is not 
always immediately under- 
stood by the frock-fanciers in 
the audience. The bondage col- 
lection was about more than 
Just trying to shock. Says Ver- 
sace: “It was my contribution 
to the debate about the free- 
dom of women to appear as 
they want." As always with 
Versace it was part theatre, 
part serious and part just sheer 
high spirits. 

New ideas seem to bubble up 
endlessly. “Seven years ago ” 
he tells me, “1 was in Venice in 
a shop selling things for scuba 
diving and it so appealed to me 
that I sent my people to 


explore bow to stitch without 
stitching, using a laser.” 

Before that he had discov- 
ered how to use metallic mesh 
by borrowing from techniques 
from aeroplane makers. Out of 
that he produced one or the 
most sensually draped evening 
dresses ever to grace a 
catwalk. 

But Versace never stands 
stHL A few seasons ago he did 
something truly shocking — he 
went simple. Down the catwalk 
came exquisite exercises in 
flowing little columns, beauti- 
fully cut. unadorned, elongated 
vests and T-shirts. The press 
was overwhelmed. But it 
proved to be just another play- 
ful episode in the Versace 
story. This season it was back 


to vintage Versace, bib-fronted 
mini-dresses in PVC, refer- 
ences to punk and rock *n’ rolL 

At their best they are beauti- 
fully made. No one who saw 
the actress Elizabeth Hurley in 
the sculpted column of wool 
crepe erotically held together 
by safety pins could deny the 
precision of the cutting, the 
craft behind the form or doubt 
his ability to cut with skill and 
contour a dress exquisitely to 
the body. 

“People," says Gianni Ver- 
sace. “are very smart The 
shoppers are the best judge. If 
you put the right dress in the 
window and they like it they 
buy it. Otherwise they don’t I 
have learned to trust the ordi- 
nary shopper.” He could also 


P earls are the great 
classic of the 
jewellery chest They 
never date and they 
are the easiest, quickest way 
of ariiffaig instant glamour. 
Almost everyone has a string 
or two somewhere. 

It was Coco Chanel who 
showed us how to wear them: 
with great panache in long, 
long strings (when fake), or 
demurely round the neck 
under a sweetly innocent pure 
white collar in three strings 
(when real). She it was who 
decreed: “When yon make it 
fake, yon always make it 
Mgger." 

Buying real pearls, however, 
is difficult - telling cultured 
from real often needs an X-ray. 


Pearl drops 


And while real pearls are 
beyond the reach of all except 
the super-rich, the quality 
(and price) of cultured pearls 
can vary enormously. 
Snowing what you are paying 
for Is not always easy. 

For anyone fascinated by 
pearls who wants to learn 
more about them, a tiny but 
magical London jewellery 
shop, Manguette, is having 
a festival of pearls (faux and 
real) for two weeks during 
June (the pearl is the 
birth-stone for those born In 
that month). 


One of the designers 
featured will be Esmiralda 
who, while not a big name 
in Britain, has a splendid 
reputation in America and 
Thailand. 

She does amazing things 
with pearls. She uses them 
for great Mg cuffs, turning 
them into long strings or 
woven cloches (for which she 
won a Japanese Cultured Pearl 
Association design prize); 
teams them with cabochon 
stones to make a necklace; 
or just turns out stunning 
earrings. 


The festival will also show 
the work of other 
contemporary designers 
including Gatto Bianco, a 
husband and wife design team 
from Florence, which 
specialises in large and 
luscious pearls set in silver 
rings. 

□ For those not within reach 
of Manguette, try a sumptuous 
book called Pearls (Ornament 
and Obsession), by Kristin 
Joyce and SheUel Addison 
(Thames and Hudson. £38). 

L.v.<LP. 

■ Manguette is at 20a 
Kensington Church Walk, 
London W& tel: 071-9372897. 
The exhibition runs from June 
1 to 15. 


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have added that these smart 
people must also be very rich, 
for a jacket can easily cost 
£1,500, a whisp of a mini-dress 
£2.000 and a full-blown evening 
stunner anything between 
£3.000 and £10,000. 

He may be teaming silk hro- 
cade with denim jeans, decking 
than out with spangles, using 
safety pins an everything from 
handbags to slithers of wool 
erfipe, beads on brassieres, jew- 
els on teeteringly high-heeled 
shoes. In Versace’s world noth- 
ing is ever very simple 
(though, confusin g l y , he rfah na 
to be so classic “as to be 
almost boring”) - he loves 
ambiguity, fantasy, complex- 
ity, combinations of apparently 
opposite elements. 

For good taste he cares not a 
jot and to judge Versace by the 
standards of so-called “good 
taste” is entirely to miss the 
point "I don’t believe in good 
taste,” he tells me, “I don’t 
believe in bad taste. I believe 
ilt quality and to frm to thing s 
that make our life better or 
happier. What you like,” he 
believes, “is good taste. A 
woman who is very sexy and 
Am is infinitely more appeal- 
ing to me than one who is for- 
mally chic.” 

John Miles, Professor of 
Fashion and Textiles at the 
Royal College of Art, is in no 
doubt about his importance. - 
“He has such verve and vim. 
Take his new book Designs 
(published June 9 by Abbey- 
well, £42). It is filled with won: 
derful vitality and will proba- 
bly become a classic for 
students." 

Ultimately it Is the element 
of risk that gives a Versace 
show its peculiar edge, its 
unique sense of danger. There 
is always the chance that. he 
might come a tremendous 
cropper, that be might erbs 
from the playfully erotic into 
the irretrievably trashy. In the 
risk, evidently, is the chal- 
lenge, the excitement that Is 
behind the Versace drive. 

As for Gianni himself, it Is 
abundantly evident he is a 
happy man. He is laughing all 
the way to his opulent new 
house in Miami. Others may 
keep the good reviews, he will 
make do with the cheques. 


Wl 

co 






FOOD AND DRINK 


Great British Eating 

A tight grip on a 
growing market 

In a new series, Nicholas Lander samples oysters and is 
told they are good for the diner and the restaurateur 


‘'Nature gave us the best shellfish in 
the world and mu objective is to sup- 
ply it and serve it as nature 
intended 

W ith these words 
Johnny Noble, a part- 
ner in the Loch Fyne 
Oyster Company, 50 
miles north of Glasgow on the west 
coast of Scotland, tucked into a 
plate of nine gigas oysters. 


Viewed from the low. white- 
washed restaurant that today con- 
stitutes the Loch Fyne Oyster Bar, 
but 15 years ago was a run-down 
far m building, nature could not be 
improved on. In early May the sky 
was as blue as the loch, in which 
2m oysters nestled. The lamb-cov- 
ered hfliw rose sharply to the High- 
lands beyond which stni revealed 


enjoy half a dozen molluscs and a 
half erf porter, are considered arche- 
typicaSy British bat the figures do 
not bear this out 

In 19th century Br itain, oysters 
were cheap and plentiful. In Charles 
Dickens' Pickwick Papers, written 
in 1836, Sam Weller talks of "pov- 
erty and oysters" and, as a nation, 
we then consumed 1,800m a year. 
Then pollution and a nasty disease, 
binamia, which hit the native oys- 
ter beds that flourished in the River 
Helfbrd, Cornwall, off Colchester, 
Essex and Whltstable, Kent, deci- 
mated stocks. As Noble says: "Oys- 
ters became scarce, then expensive 
and so became toffs’ food.” Today, 
the French consume 2,000m oysters 
a year while British consumption Is 
op tarn 4m. 10 years ago, to 20m 
today. 

Loch Fyne now breeds and sells 
more oysters than anyone else in 
Britain but it dates back only to 
1978 when a chance meeting 
between Noble and Andrew Lane, a 
marine fish farmer, led to the pur- 
chase erf 10,000 seed oysters from 
Guernsey. 

A series of disasters them ensued. 
The seed oysters did not survive the 
year and strong tides washed away 
the wooden poles supporting the 

oysters. 

These problems were solved after 
Lane's visits to oyster beds at Arca- 
chon and Brittany in France. Lane 
switched to the gigas oyster and to 
a method erf rearing which Involved 


snow. 

Oyster bars, in which you can 


Where to eat oysters 

LONDON 

Bentley’s, W1 (734 4756), and EC4 (489 8067), Quagifno’s, SW1 (930 6767), 
Wilton's, SW1 (629 9955). Overton’s, SW1 (839 3744) Upstairs at the 
Savoy. WC2 (836 4343), Walsh's. W1 (637 0222), Green's, SW1 (930 4566) 
Bibendum. SW3 (581 5817), La Palate du Janfin, WC2 (379 5353). Le 
Suqust, SW3 (581 1785) Pont de la Tour, SE1 (403 8403), Sweetings,- EC4 
(248 3062). (AB 071 to/ephone codes.) 

OUTSIDE LONDON 

Fishes 1 . Burnham Market, Norfolk (0328-738588); Mortimer’s, Bury St 
Edmunds, (0284-760623); Mortimer’s, Ipswich (0473-230225); Seafood 
Restaurant, Great Yarmouth (0493-856009); Slipway, Bodmin, 
(0208-880264); Pig ’n’ Fish, St Ives (073&-794204); Whltstable Oyster 
Fishery Co, Whltstable, 01227-278856); Chaintocker. North Shields 0191-258 
0147). 

West Meraea Oyster Bar, The Packing Shed, Coast Rood, West Meraaa. 
Loch Fyne Oyster bars Nottingham 0602-508481; Ston Estate, 
Peterborough, 0832-280298. 

SCOTLAND 

Loch Fyne Oyster Bars, Clachan Farm, Caimdow, Argyll PA26 8BH, let 
04906-264, fax 04996-234; Lock 16 Seafood Restaurant, Crinan Hotel, 
Crinan (054683-261); Cellar, Anstnrther (0333-310378). 



Picking a pfaxnp moffuscs Lech Fyne now breads and setts more oysters than anyone else ki Britain 


metal trestles laid on the loch, 
retrieved at low tide by tractor. To 
survive financially they realised 
they would have to ship their oys- 
ters to London but were hampered 
by British Rail's insistence on clas- 
sifying their oys ters as “cattle and 
livestock”. 

Today, Loch Fyne’s annnai turn- 
over is more than E4m. Every after- 
noon three refrigerated lorries leave 
for their two other oyster bars in 
Nottingham and Elton, Peterbor- 


ough, and for top London hotels and 
restaurants, hi the mnmiwg a van is 
loaded with oysters and smoked 
salmon for Glasgow Airport and on 
to stores, hotels and private custom- 
ers in Germany, Hong Kong, 
France. Spain, South Africa and, 
recently, Argentina. In 1993, exports 
exceeded lm, a landmark recog- 
nised by a Queen's Award for 
Export 

The revival of oyster eating in 
Britain today may be because they 


are good for you - they are low in 
cholesterol and rich in minerals - 
but they are attractive to the res- 
taurateur, too. As restaurants 
become bigger it is a big advantage 
for a busy kitchen if some first and 
main courses, such as oysters, lan- 
gous tines and seafood platters, 
require no cooking or can be pre- 
pared in advance. 

Noble has years of serious oyster 
eating under his belt and, just 
before the last oyster of our meal 


disappeared he told me how to spot 
a good gigas. There should be no 
blistering on the shell, which would 
mean uneven growth, nor should 
the shell be too frilly, which would 
mean too much sediment in the oys- 
ter beds. Most of all, they should be 
nice and plump, which would mean 
that they had fed on plenty of 
plankton. "A good mouthful," he 
added. 

And with that another tray of 
British oysters was finished. 


Why wine can 
cost so much 

Janas Robinson explains the price of a bottle 



lnancial Times 
readers have prob- 
ably long sus- 
pected that the 
relationship 
between a wine’s retail price 
and its production cost is as 
variable as a winemaker’s ego. 
Even some of the most enthusi- 
astic wine drinkers, however, 
may not realise how varied are 
the factors which currently 
influence wine costs and 
prices. 

Although duties are minimal 
in much of Europe and the 
Americas, regular UK excise 
duty on a bottle of still table 
wine is £L01 a bottle, regard- 
less of quality. An additional 
customs duty of about lOp a 
bottle is levied on all still 
wines produced outside the EU 
(2ip on sparkling wines). Bul- 
garia, Hungrny and Romania 
have negotiated exemptions 
from this additional duty. 

Grapes, the raw material of 
wine, often cost very little 
indeed, especially workhorse 
grppe varieties of which there 
is a surplus (La Mancha's 
Airdn, for example) and the 
produce of heavily irrigated 
regions with high yields such 
as South America and the Aus- 
tralian Riveriand: a few hun- 
dred US dollars a tan, or the 
equivalent of only 10p to 20p 
per bottle. Europe’s mass mar- 
ket products, LiebfraumQch 
and Lambrusco, are traded 
even more cheaply, as com- 
modities. At this bottom end of 
the market, the exchange rate 
can have as big an impact on 
cost as grape price. 

The costs of growing, pick- 


ing, arart processing grapes can 
be extremely low, either in 
those increasingly rare regions 
with low labour costs (South 
Africa and Portugal have been 
examples) or where most vine- 
yard operations have been 
completely mechanised. (Aus- 
tralia. with a sparse rural pop- 
ulation and sophisticated tech- 
nology is the prime example.) 

Vines in damp climates are 
usually more expensive to keep 
healthy than those in hot, dry 
ones where the need for fungi- 
cides is minimal 

Only when it comes to wine- 
making do costs vary consider- 
ably, according to wine style. 
Early drinking wines that need 
no expensive oak and can be 
bottled and sold young - 95 per 
cent of whites and 90 per cent 
of reds - are many times 
cheaper to make than wine of 


toques, white and pink wines 
should cost less to produce 
than reds since heavy irriga- 
tion and high yields are gener- 
ally less obvious, or at least 
more bearable, than hi red 
wines of which we demand a 
certain weight and colour 
intensity. (Energy costs are 
likely to be higher far white 
wines, however, as refrigera- 
tion is a mote si gnificant part 
of the production.) 

Packaging costs - generally 
bottling - trad to vary accent- 
ing to country. They are partic- 
ularly high in Australia, 
thanks to the ACI glass monop- 
oly. It would probably be 
cheaper to ship an Australian 
wine to Europe to be bottled 
before selling it - even in Aus- 
tralia, and more British retail- 
ers are having their cheaper 
Australian wines bottled using 



One underpriced bargain is Victoria Wine’s Cuvfe Cathare from 
La LMnfere co-op in the Mktervote' most admired wine village. 
The label says Meriot, my palate has convinced itself there Is 
some Syrah pepperiness in there too. 

Available at VWs specialist Wine Shops, It is a Juicy, dense red 
that can be drunk with great pleasure over two or three evenings. 
Throughout May ft Is reduced to £2.99 (so you had better hurry) 
but even at £3.29 It Is a good buy. 


any colour matured in small 
oak barrels which axe expen- 
sive to buy and maintain. A 
top quality new French oak 
barrel, amortised over three 
years’ harvest, can today add 
between 30p and 60p to the pro- 
duction costs of a bottle of 
wine. (Oak chips are a much 
cheaper alternative.) 

Apart from the cellar tech- 


s orpins bottling capacity In 
northern Europe. 

Bottling lines are often the 
most expensive long-term plant 
investment for a winery, justi- 
fied only by high volume or 
extremely high quality and 
prices. Contract bottlers are 
more common in the new 
world; mobile bottling lines in 
the old. Increa s ing l y squeezed 


on margins, producers have 
been trying to cut costs by 
using thinner glass and shorter 
corks. 

The cost of buying and run- 
ning cooling equipment can be 
high in hotter wine regions far 
from manufacturing centres, 
notably Italy in the case of 
wine technology. However, 
many Italian manufacturers 
have been offering keen prices 
to producers in the emerging 
wine regions of eastern Europe 
and South America as orders 
have slowed from the devel- 
oped markets of Europe and 
North America. In 1993, for 
example, Italy shipped $44m 
(£283m) worth of equipment to 
Chile, most of it to ■wineries. 

European wineries, particu- 
larly cooperatives, have bene- 
fited from interest-free loans 
and sometimes grants for 
equipment, leading to new 
world charges that the Euro- 
pean wine industry is state 
subsidised. The wine industries 
of Spain and Portugal have 


B 


efbre British Rail was 
created after the sec- 
ond world war, each 
of the independent 
railway companies had its own 
palatial hotel tucked behind its 
main ter minal. In the majority 
of cases, the impressive shells 
of these buildings have sur- 
vived although, in the inter- 
vening years, something of the 
spirit of British Rail crept into 
their corridors and public 
rowns, so that only the unwit- 
ting ever stayed in t h em . - 
But one superb old station 
hotel h ag come in from the 
cold. The Regent Hotel in 
Marylebone Road, London, 
used to be called the Great 
S&olral, one of the last railway 
iptels to be built ami one of 
Jb first to close its doors when 
was requisitioned for troops 
1® -.-the second world war and 


Cookery courses 

Back on track 


turned into offices for the new- 
ly-founded British Rail immedi- 
ately after. 

Fortunately, neither the sol- 
diers nor the bureaucrats did 
mu ch harm to the hotel's inte- 
rior and, after a 3%-year resto- 
ration, it opened as an hotel in 
spring last year. The present 
owner, Four Seasons Hotels, 
has. taken the bold step of 
establishing an Italian restau- 
rant there. 

The chef is Pablo Simians, 
who had a Ifichetin star at the 

Ristorante Concorde di VUIa 

Poma in Mantua. It is for Sim- 


ioni’s north Italian cooking 
that the Regent is of Interest: 
this is certainly one of the best 
Italian rest a u ran ts in London 
Simiotri. is a stickler for .qual- 
ity ingredients. Hie shows off 
his of olive oils with 





Vinsde Bourgogne 
For stockists, 
teL 071-409 7276 


( LARI TS AM) 
vivrua: ports 


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cooked). He even mak es a spe- 
ciality of a rare style of pasta 
called garganelli where little 
squares are rolled round a 
stick and pinched together. 

Naturally, risotto is a strong 
suit With crab and leeks, it 
was a notable success. Sea bass 
is stuffed into ravioli and 
served with big chunks of lob- 
ster. And the garganelle are 
presented with a spring sauce 
flavoured with saffron. One 
dish which was sadly oat of 
season was a cogs made from 
pride, many of which he fla-. . parmigiano reggiano cheese, 
voura witobertis ahdsirfces. ^Ar' J flHed with cagpelletti and & 
JHost things vhe/ can get; ifr^-wibeeseend white truffle paste. = 
London, liter V tew * specially A. From .JuheT^ie Regent Is : 
tngrwfa nt j); bora to Be Slo^i.^; c^^jg'Mpdas. flte. cham^to)' 
from Baly, sadias the bnJ&^<r«jeaffL : to cook some of §imk0*h-, 
mint - ricotta- -cheese wh^dh^-r^hgKS .from - the master' hlni^ f 

arrives on Tuesday every Ckraraes^tajre place an one 

and is used up,% Tbimsdagfi^^tiirday a month, and last for: 

He lias a passion for- viiisgaraA^anhbnr. For £38; students also % 
gri nding a 15r year-old ^T.'get-n .wine last 
santo from Badia a CaMbnano- Experience, a. 
and numerous ancient Sflv j .lunch in fee dining room, and '; 
wmrip. products. A ’ p, A'J&fr’a bottle at wins - wtoeft. 

Pasta is rode on the prat ^sounds a generous package. , 
fees; not Just the very trendy ; 9 r Inquiries to. Charlotte Law- 
squid-ink pasta but a deep-pur - son at the Regent Hotel (tel: 
pie variety coloured with beet 071-S31 €000, fax 631 803 if), 
root juice; fresh herb paste; * Apply mil in qhxnice: for rea- 
and the more usual gree^i sow testing 
spinach pasta. , those taking part are limited to 

The beetroot tartdBni wife four a session. 
ricotta were so good they were 
delicious raw (but even better 


- Thtea figures can vary coraidcfiitty 
. ** inducfirxj any whoteoolo miuatn 


been heavy beneficiaries of EU 
funding, which continues until 
1996, and Portugal has been 
targeted by the World Bank for 
economic development There 
are also price support mecha- 
nisms throughout the EU, 
iuritoding compulsory distilla- 
tion erf surplus wine, which is 
forcing up the price of basic 
Spanish table wine, Europe’s 
wine bargain. EU producers of 
better quality wine are 
restricted, however, by limits 
on yields and all have to pay 
relatively high social, costs. 

Transport costs are remark- 
ably simil ar regardless of dis- 
tance. Ocean freight costs are 
much lower than land trans- 
port costs and have been fell- 
ing. The cost of shipping a con- 
tainer (1400 cases of a dozen 
bottles) from Valparaiso to 
Hong Kong, for example, h a s 
fallen from $5,000 to $2,000. The 
Chileans claim they caw ship a 
case of wine to New York 
cheaper than their California 
counterparts. 

Marketing costs for most 
wines are relatively minimal, 
wife the exception of a handful 
of heavily promoted brands. 
There may be as much as flm 
worth of marketing built in to 
a bottle of branded Liebfraum- 
ilch, for example. 

Retailers' margins are gener- 
ally between 18 and 33 per 
cent, depending on turnover 
and market position. Super- 
markets have become so pow- 


erful in the UK that they have 
often betel nhla to Hamanri that 
wine producers take the strain 
of small duty increases to 
maintain precious price points. 


m 


Giles MacDomgh 


( I IRIS TIE'S 


City 'Wine Auction 

t 13 June 1994 

. For this Catalogue to be 
faxed to your desk, 

dial 0839 401 265 

maitgthe handset attached to 
your fiat machine. 

. Calk charged at 
39p a minute (cheap cite) 
49p per minute at aO other tunes 
/ Hdpfine (071) 613 5000 
UK.OB b 




Cookery /Philippa Davenport 

Sunshine treats 


H ope springs etemaL 
The bank holiday 
weekend at the 
beginning of May 
boasted glorious sunshine, a 
summery promise dashed 
severely since - but not for- 
gotten. Now, as though to force 
the gods into giving us another 
blaze of fine weather this bank 
holiday, barbecues have been 
reassembled mid fresh supplies 
of charcoal bought. 

if, perish the thought, the 
weather forces a retreat 
indoors, the recipes that follow 
can be cooked just as well 
under the grill of a conven- 
tional cooker, or on a ridged 
grill pan, as over glowing 
embers. Some may call it sexist 
but, whichever grilling method 
is used, I reckon the cooking is 
done best by a man. 

SARDINES AGRODOLCE 
(serves 4) 

A few very obliging fishmong- 
ers will, if given advance warn- 
ing, scale, gut and fillet 
sardines. More often, these 
chores fall to the cook - a 
fiddly but not difficult task. 

Chop off the heads and fins, 
slit the bellies and clean out 
the insides. Rinse well and pat 
dry. Lay the fish open side 
down on the work surface and 
press down gently on the back- 
bone. Turn the fish over, cut 
the backbone close to the tall, 
and pull the bone away. 

Ingredients: ltflb sardines 
weighing about lVfeoz each; 
’Alb main crop carrots; 4 shal- 
lots; loz toasted pine nuts; 
Vioz currants; 1 lemon; a very 
large pinch of sugar; a tittle 
olive oil; 2 bay leaves; the 
leaves stripped from a sprig or 
two of thyme, % teaspoon fen- 
nel seeds; 1 heaped tablespoon 
chopped parsley. 

Method: Toast the pine nuts 
in a fat-less frying pan, shak- 
ing it frequently and watching 
the nuts like a hawk. Snatch 
them from the heat when 
golden brown all over. 

Chop the shallots finely and 
soften them gently in a tittle 
olive oil whOe you peel fee car- 
rots and CUt thpffl intn hntrmc. 

Stir the carrots, fennel, 
thyme, bay and sugar into the 
shallots. Pour on 4 fl oz water, 
bring to the boil, cover and 
simmer for five urinates. 


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Sprinkle an the currants and 
simmer for one minute more. 
Then add 1 tablespoon lemon 
juice, turn up fee heat and 
drive off most of the liquid, 
stirring frequently and adding 
salt and pepper towards fee 
end. Set aside while you grill 
the sardines. 

Brush fee silvery wMtib of 
the sardines wife a fine fihn of 
oil and grill them briefly over 



hot coals until cooked through. 
(Or, if forced indoors, cook the 
fish slrin side up under a con- 
ventional grill or skin side 
down in a ridged grill pan: two 
to three minutes should be 
enough.) In all cases, be sure 
the grill is preheated. 

Quickly add the pinenuts 
and a little parsley to fee car- 
rots and tote to mir Spread 
the vegetables on a shallow 
tfteh. Lay the sardines on top, 
grinding pepper and sea salt 
over them. Drizzle with 1 
tablespoon olive ail and l tea- 
spoon of lemon juice, scatter 
with parsley, and serve wife 


wedges of lemon and bread. 

WARM SALAD OF 
flRTT.T.ITO AUBERGINES 
(serves 4) 

Dutch aubergines grown under 
glass, fee sort available most 
widely in Britain, do not need 
salting before cooking. Garlic, 
lemon, olives and capers are 
just right for perking up their 
blandness. 

Ingredients: i%-2lb auber- 
gines; a little olive oil for grill- 
ing; 1 frit garlic clove, finely 
chopped; 2 tablespoons rinsed 
and chopped capers; 2 tables- 
poons chopped coriander 
leaves; 2 tablespoons whole 
small black Nicoise olives (or 
stoned and chopped Ealamata 
otivesk 3 tablespoons olive oil; 
1% tablespoons lemon juice. 

Method: Put the garlic, 
capers, coriander, olives, olive 
oil and lemon juice into a shal- 
low earthenware dish and slip 
it into a low oven to warm 
through. 

Cut the aubergines into %ln- 
tirick slices. Brush lightly with 
oil on both sides and grill in 
batches on a barbecue, or in a 
ridged grill pan, or under the 
grill of a conventional cooker. 
Turn the slices once and allow 
six to seven minutes for fee 
vegetable to become hot, ten- 
der and burnished wife gold. 
Keep the grilled slices warm 
while cooking the rest. 

When all the aubergine is 
done, toss the slices in the 
wanned dressing, adding sea 
salt and black pepper to taste. 
Serve wife hot bread to mop 
up fee fragrant juices. 



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SPORT / MOTORING 


Cricket 

The captain 

plays a 
straight bat 

Teresa McLean meets Mike Atherton 
and finds a tired, careful young man 


A cold morning, an 
almost empty Lanca- 
shire ground, a cup of 
grey coffee - I was 
not surprised Mika 
Atherton looked tired. After aD that 
Test match excitement, an inter- 
view in this setting was likely to 
feel a bit flat. Nevertheless, he 
smiled, wearily, and said: "Fire 
away.” 

I asked him , first, what he 
thought of the press. He considered 
the question. Atherton talks cricket 
like he plays it, keeping quiet while 
he thinks and when he has no more 
to offer, ffis answer was careful. 

“Generally. I think when you 
start a new job that they give you a 
bit of a honeymoon period. At the 
end of last summer and for most of 
the winter, I think they’ve been 
pretty flair with me. A little bit of 
‘amateur at bed-time' about some of 
the players at one point: I thought 
some of the criticism was a bit 
unfair and 1 said so after the [Test] 
in Barbados. But, an the whole, not 
too bad.” 

Atherton is obviously a man with 
battle plans for all occasions, 
including publicity. He does not 
talk with any suggestion of confi- 
dentiality or Intimacy: he simply 
gives his views. To know more 
about what lies behind them, you 
would have to know him better 
which, I suspect, would not be easy. 

“Do you like being captain of 
England?” I asked. 

“It’s been an enjoyable experience 
so far [although] Tm sure thereH be 
tougher times ahead. Tm not going 
into it thinking, you know, I must 
be captain of En gland at all costs. 
HI give it my best shot and if I get 
slapped down or get the sack, then 
so be it" 

Whether Atherton really is so 
resigned to his fate, whatever that 
might be, is hard to telL At present, 
he is captain of England and his 
batting seems to thrive on all the 
pressure that brings. The harder 
the going, the harder it is to get him 
out His defiant 144 in the second 
Test at Georgetown, Guyana, is just 
one among many examples of this 
on the recent West Indian tour. 

Then, too, only time will show if 
his leadership also thrives on a 
struggle as did that of Ray Illing- 
worth, England's clever captain in 


the late 1960s and early 1970s and 
now Hia chairman of selectors - 
Atherton's overseer. Or whether it 
wffl wilt under the strain, as did the 
plain Hfl flde r y hi p of hia predecessor 
as captain, Graham Gooch. 

Both Hhngworth and Atherton - 
who looks younger than his 26 
years - are strong characters, and 
an element of disagreement over 
the teams they choose is inevitable. 
It might even be a good thing so 
long as it does not make either of 
them resentful when they fail I 
think Atherton would enjoy proving 
himself with a team not entirely of 
his choosing; fighting against the 
odds wi thin the system. Also, it 
would give the team more freedom, 
not feeling they belonged to a 

nnixjnan hand 

Atherton had no doubt that 
Gooch was an asset in the team, not 
a rival, but agreed it had been an 
advantage in taking over when 
things were in a bad way. “Yes, I 
think so...&aham Had had some 
successful years, but we'd just been 
beaten by Australia and India so we 
were at a fairly low point Hope- 
fully, the only way you can go is up 
and I think, hopefully, people will 
give me a little bit of time.” 

Time for what? 

“The most Important thing that 
has come out of my time as captain 
so far is learning about the players, 
about their character, whether 
they're up to it . . . you know, when 
the going gets tough, who comes 
through and who doesn't” 

Preferring not to name anyone 
specifically, Atherton declared him- 
self keen to get the best out of all 
his players this summer. “We 
should do well in the early part of 
this summer. We’ve got the ability 
to beat New Zealand if we play 
weiL” 

He was more guarded, but also 
more enthusiastic, about South 
Africa. “That series should be a 
very enjoyable and competitive one 
... I think it'll capture the public’s 
imagination. They've already sold 
out the tickets for all the matches." 

At this point I dropped my hand- 
bag, which spilled its bits and 
pieces all over the floor. Atherton 
picked up one or two of than fra- 
me, a bit uncertainly. Somehow, It 
was almost a relief to see him fra a 
moment with his composure 



slightly ruffled. It would be sad to 
think that he has- learnt to defend 
hims elf completely against all spon- 
taneity. I have no doubt, though, 
that he does well to guard his natu- 
ral privacy. 

He was nan-committal about the 
personal pressures of top-level 
cricket, mentioning only the large 
number of meetings as something 
be found particularly annoying. But 
he did say that a short sabbatical 
every so often might be a good idea. 

“The programme over the next 


two or three years is a very tiring 
one. People who are involved in 
international cricket, after three or 
four years, might find themselves in 
need of a couple of months off. But 
that’s not the case yet" 

Not a bad plan, but one which the 
cricket authorities would probably 
find a nightmare to put into prac- 
tice. At least they can rest easy that 
Atherton is happy so far and contin- 
ues to be dedicated to Test cricket - 
which he describes as “the real test 
of a top-class player”. 


He did not just smile, he beamed, 
without pausing for thought, when 
he told me that while the short, 
highly-strung character of one-day 
cricket can sometimes make it more 
fun, “the real number one is Test 
cricket All the players prefer Test 
cricket”. 

A set of good, hard fights 
this summer, brightened with some 
victories, should bring out the best 
in Atherton, with hopes of more, 
tougher and better things to 
come. 


Golf 

Mystery of 
the vanishing 
amateurs 


N o doubt the keen golf 
followers among you 
will be able to work out 
the common thread that 
binds together the names of Duncan 
Evans, Martin Thompson, Philip 
Parkin, David Curry, Paul Mayo. 
Stephen Dodd, Stephen Dundas, and 
late Pyman. 

Equally, there is no shame in not 
having the faintest idea who half of 
them are, let alone what fate has 
brought them together. Perhaps the 
cynical have made a stab at the fact 
that, apart from Pyman who has 
only just joined the paid ranks, they 
axe all struggling professionals, in 
which case award yourself one 
mark out of two. 

The correct answer is that these 
are the British players who have 
won the Amateur Championship 
since 1980 and, frill of ambition and 
with dreams in their heads, have 
gone on to turn professional. 

A good point to start is 1980, 
because it was about then that the 
amateur game had ceased to be any 
such thing and had evolved Into a 
nursery for budding professionals. 

This year’s Amateur Champion- 
ship begins on Monday at the beau- 
tiful Nairn golf club on the east 
coast of Scotland, and the average 
age of the 288 players from 19 coun- 
tries who will try to win it will 
certainly be no mote than 25. It will 
be a surprise if the winner is over 
21 . 

Next Saturday afternoon, he will 
come into the interview roam and 
he will say that it has always been 
his ambition to {day in the US Mas- 
ters; winning the amateur gains an 
invitation to Augusta next April. 
Shortly thereafter he will be faced 
with the tricky decision of either 
turning professional or waiting 
irwtfi the mmpiutkin of the Walker 
Cup the following September. 

Croat things will be predicted fra 
him and maybe he will allow him- 
self to be carried away by some of 
them. So let me introduce a note of 
caution: just study that list of win- 
ners again. They are not exactly 
household names. Indeed, only 
Mayo is coirentiy.playing regularly 
on the' European tour, and no one 
would consider him anything other 
than a journeyman. 

Some of the failures have been 
spectacular. Evans, after a particu- 
larly unhappy time as a pro, was 
reinstated to the amateur ranks, 
and for a while was working in a 
fish and chip shop. Parkin is per- 
haps the biggest mystery of all. In 
his first event as a professional he 
finished in a tie for 81st in the Open 


at St Andrew*. 

Two years later, at Turaberry, be 
was lying 10th wtth three fades to 
play, before finUbing bogey, double 
bogey, par to drop back to list Who - 
would have thought that 
years rat, aafite Qpen retUrh& this 
July to tin Alisa course in Ayr- "* 
shire, that Bnkin would have ho 
tour card, apd would be reduced to 
lining up in tin Open regkmal qual- 
ifying st ag e s? 

Dodd and. frundss. are *«*«*»> *+ •' 

professionals, their aspirations of 
playing th» fora havtog regressed to - J 

the point where no tme'calfa them 
"promising” any more.-. 

Going sHghfiy further back, there 
is the oare etTrevra. Honor, who - 
won the Amateur not once but 
twice in thrte years ta tin early 
1970s. Bat Ids professional career 


DerekLawrensonon 
young champions s* 
whose promise faded ~ y 

was a failure. He applied for rein- 
statement, and was so disillusioned m % 
with the game that he did not pick 
UP a did) for almost 15 years. 

Of the time overseas players who 
have won tin Amateur since 1980. 
and have tried their hand at the , r 
professional game, Christian Hardin 
from Sweden, ami Rolf Muntz from ^ 
the Netherlands can only be said to 
have added tiaair names to this mys- “ 
terious litany of failure. 

Why does it an go wrong? Most - 
often, and certainly In the cases of - . 
Evans, Homer and Dodd, they make 
a bad start and when what little 1, . 
sponsorship revenue they have 1" 
managed to cobble together runs 
out, they become trapped in a 
vicious cycle where the pressure to : 
make money strangles their gold 

AH the same it is baffling, at a ; 
time when. a . distinguished amateur 
career is accepted as a landmar k 
towards professional success, that ; 
winning the biggest amateur event 
can mean so Utile. . 

‘ There is, hoWever, rate glorious 
exception. In 1384 at Fonnby Jose* • ’ 
Maria Olaxabal, having defeated * v 
David Gilford in the semi-finals, - 
beat Cohn Montgomerie in the final. ~ '' 

Still, it is sobering to reflect that 
he is the first winner of amateur 1 
golfs premier event to go on to^ 
achieve a major championship vie- 4 -'* 
tray since Lawson Little, Amateur “ -> 
Champion in 1934 and 1935; won the - . 
US Masters in 1940. 


F or England there is no 
respite. On Wednesday 
they were run close by 
Western Transvaal, a pro- 
vincial union so isolated and back- 
ward in the larger scheme of things 
that Its supporters proudly display 
giant flags of the old South Africa. 

England’s tour of South Africa 
has so far proved a nasty shock to 
European sensibilities. Which flag 
is which? And what to make of the 
11 official languages and the smell 
of cordite that follows them on to 
the rugby field. 

England are supposedly testing 
the water ahead of next year's 
World Cup in South Africa but they 
have hardly performed like poten- 
tial world champions. Thrown off 
balance by the aggression of their 
South African opponents, they look 
vulnerable on the bone-hard playing 
surfaces of the high veld. Nor do 
the rarefied air and the awkward 
bounce of the ball make survival 
any easier. 

They lost their first two games, to 
Free State and NataL On Wednes- 
day, England looked no less tenta- 
tive in their 26-24 victory over West- 
ern Transvaal. 

The one disruptive factor to 
which the English seem oblivious is 


Rugby Union/Deon Viljoen 

Two hard Tests 


the South African ploy of speaking 
Afrikaans, to obscure lineout and 
other si gnals. The language harrier 
may benefit Will Carling’s charges. 
At least Victor Ubogu, having not 
yet mastered Afrikaans swear 
words, has been unfazed when sin- 
gled out for verbal abuse. Physical 
abuse is another matter. 

England's expanding casualty list, 
caused chiefly by the hard ground, 
as much as thair indifferent form, 
has convinced aficionados that their 
two-Test challenge has already col- 
lapsed. If Free State and Natal can 
de thorn the rose which such ease, 
surely South Africa will atomise 
them in the internationals. 

Two factors militate against this. 
Since its return to the world stage 
in 1992, South African rugby has 
been undermined by the very 
devices which ensured survival 
through two decades of isolation. 

The domestic Currie Cup competi- 


tion has entrenched regional divi- 
sions to such an extent that forging 
a new national entity may take 
years. Hard evidence of the strength 
of provincial unions was provided 
by Transvaal’s win in the inaugural 
southern hemisphere Super 10 title 
last year, crushing Auckland, from 
New Zealand, hitherto considered 
the best provincial team. Two 
weeks ago Natal contested the sec- 
ond Super 10 final (albeit unsuccess- 
fully) against Queensland. 

The South African captain, Fran- 
cois Pienaar, was quoted in Austra- 
lia as saying tha t his provincial 
side, Transvaal, was a stronger unit 
than the Springboks. This triggered 
a public outcry. Pienaar rfaimpri he- 
had been misquoted, but whoever 
laid the words In his mouth was not 
far off the mark. 

Had P ienaar not hurt his ankle 

the quote would almost certainly 
have contributed to his losing the 


captaincy against England to fellow 
back row forward, Tfiaan Strauss. 

The worst effect of the isolation 
era on the South African game has 
been an erosion of refereeing stan- 
dards. The comfy cocoon of 
so-called South African invincibility 
was kept intact by officials badly 
out of step with world standards. 

This anomaly was exposed during 
the French tour to South Africa last 
season. Like England, the Tricol- 
ores were no great shakes in the 
build-up to the Tests, yet won the 
series 1-0, with a win and a draw. 

South Africa could not adapt to 
the sudden return to an interna- 
tional standard, applied by overseas 
referees in the Tests. I suspect 
England are awaiting the arrival of 
the New Zealand referee ColLn 
Hawke with anticipation. 

But poor refereeing does not 
explain why England have been so 
lacklustre. Without the silky Jer- 


emy Guscott, the backline appears 
wooden. Free State played an 
attacking game to good effect by 
r unning first phase ball wide. South 
Africa will also probe on the periph- 
ery, in part because they lack the 
lineout forwards to raatnh En gland 

South Africa’s coach Ian 
McIntosh, preoccupied with ball 
retention drills, has been criticised 
fra neglecting running rugby and 
the natural flair of the South Afri- 
can three-quarters. 

England might be looking 
incr easingly dilapidated but South 
Africa's final training session, with 
a bloated squad of 57 players, many 
of them injured, sought refuge at a 
“secret" venue; a sure sign of panic. 

The Tests may turn on whether 
England can summon a heroic dis- 
play from their overworked pack. If 
England win another try Iks vic- 
tory, their fans can find solace in 
the words of the late Boy Louw. 
Louw, one of South Africa's most 
versatile forwards in the 1920s and 
30s, was a national team manager 
with a gift for the gab, if not for the 
En glish lan g ua g e. 

Berated by the media after his 
team won by lacking all its points, 
Louw shot back: “Never mind. Just 
you looks at the scoreboard!” 



England on the runs Hoptay and 


Motoring/ Stuart Marshall 

A safe ride in the 
ultimate boy racer 


he sad thing about 
Fort’s Escort RS Cos- 
worth is that most of 
the young who lust 
cannot afford to buy 
n if they could fund its 
i - £25,175, or less than 
price of an equally 


motors 


4 EMC A London' a Largest 
Doalor for LEXUS 
To! 00 I 203 1 880 

Haaaop Lamia. Ewwrienw ft* hajv) _ lha 
hMjry of Bib Lamia mgs. Owim***"* 

a homo or oflkw. Tot 061 488 0008. 

AUTO BMW 0501 MaulttM BU» RSpaa 

aw*m «. FSM E 3 St T«* on 631 

MBS HI 


unattainable Porsche 911 - it is 
unlikely they could insure it 

Picture the scene. A 21-year- 
old, with a couple of expensive 
accident claims under his belt, 
walks into an insurance 
company. 

As soon as he mentions he is 
seeking cover on a fat-tyred 
vehicle of 227 horsepower, with 
a monstrous rear spoiler and a 
top speed of 140mph (225kph), 
what happens? The motor poli- 
cies manager either gives a 
hollow laugh, tries to hide 
under the desk, or runs 
screaming from the office. 
Thus, very few examples of the 
Escort RS Cosworth are likely 
to end xxp in the hands of those 
who would relish most the 
thought of driving them. 


Does this mean, then, that it 
is an inherently difficult, even 
dangerous, car? The answer is: 
absolutely not Used responsi- 
bly, there can be few safer for 
all kinds of journeys on motor- 
ways, main and minnr roads. 

The Escort RS Cosworth is 
the latest version of a vehicle 
that was created to win motor 
sport honours for Ford. In 
essence, it consists of the 
mechanicals of a Sierra RS 
Cosworth 4x4 tucked away in 
an Escort body s he ll, rn«> all 
previous Escorts, it hag done 
well in international rall y in g ; 
it won this year’s Monte Carlo. 

The road-going model I drove 
in Luxembourg and Germany 
last week, although much 
tamer than the rally car, is a 



Its 227 horsepower 


formidable performer, it will 
catapault from MOmph (96kph) 
in 6.7 seconds and, more mean- 
ingfully, accelerate in fourth 
gear from 30-tiOmph (48-96kph) 
in 9.4 seconds. In practice, this 
spells safe, swift overtaking on 


wet or dry roads. 

It also spells temptation. I 
really disapprove of people 
who drive fast and grippy cars 
on country roads at speeds 
more appropriate to a rally spe- 
cial stage. And wtaat did I do in 


the almost traffic-free lanes 
criss-crossing Luxembourg’s 
woods and fields? You have 
guessed. 1 yielded to tempta- 
tion, although only where 
sight lines on bends made it 
safe to do so. 


I discovered that the Escort 
RS Cosworth 4x4, on its spe- 
cially developed Pirelli P Zero 
Corsa tyres, has extraordinary 
cornering powers. It is easier 
to drive Cast on slippery roads 
than any other car I can think 
of. And, however much you 
exploit its turbo-charged mus- 
cle, the sophisticated transmis- 
sion defeats wheel spin. 

What is it like to drive at 
more sensible speeds? The 
ultra-low profile tyres are less 
than half as high in cross-sec- 
tion as they are wide. Inevita- 
bly, they tend to “tram-line" - 
that is, follow ridges in. the 
road - and rough surfaces are 
heart as well as felt 

Both the engine and power- 
assisted steering respond 
instantly; the anti-lock brakes 
are powerful; and the five- 
speed transmission smooth 
without being exactly silky. 
Conversation became difficult 
on the autobahn at close to 
m ax im um speed, but at 80-85 
mph (128-I37kph) the engine 
sang sweetly and not at all 
noisily. 

Changes to the power plant 
include using a smaller turbo- 
charger. Peak power and maxi- 
mum torque (pulling power at 


before,, but are davolopect -at 
lower revolutions. This makes 
the Escort RS Cosworth as , 
driveable as a family car hi ‘ 
town traffic. 

The luxury-trim version I 
tried' sets -you back £24,775, 
With optional extra leather 
seats, air-conditioning and pas- 
senger air-bag, it would cost 
£27,005 - still wry reasonable. 
The spoiler might come In use- 
ful as a table for plates of food . 
at race meetings but; other- . 
wise, seems pointless. It is part . 
of the package, but Fort makes 
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GARDENING AND OUTDOORS 


Chelsea blossoms in 


S London’s gloom 


Robin Lane Fox enjoys its variety and spectacle 


H ow can on « Chelsea 
flower show he dif- 
ferent from 
another? After 30 
years, surely we midiTKwg gar- 
deners have seen it an before? 

In fact, if you were there this 
week yon probably saw more 
, of it than usual because the 
tickets, although Hmftrai did 
not sell out in advance. If you 
were not, you infayd the usual 
acts of extravagance outside 
the main tent the perpetual 
threat of mud, a nd a marvel- 
lous range of exhibits inside 
whic h would keep anyone 
going for the next few months. 

Ou tside , horticultural book- 
seller Wells pud Winter, of 
Mereworth, Maidstone, Kent 
(tel: 0622-813627), was 

distributing lists of rabbit- 
proof plants, and a diving gfcri 
in white marble had been 
sculpted with a trendy pair of 
bathing shorts, while the 
theme gardens continued the 
new focus on sufferers, 
whether blind, allergic or 

prison birnatefl 

The press proved to have 
pulled itself together and the 
Daily Express staged a rather 
charming impression of a rail- 
way cottage’s garden with 
eroding rails, no timetable aw> 
a glimpse of what rail privati- 
sation could mean for a rural 
track. 

Much the best garden, 
though, was the Daily Tele- 
graph's abbey garden which 
Julian Bannerman mounted 
with unusual flair on the diffi- 
cult comer site. For once, a 
theme garden was more than 
promotional hot air. 

Bannerman assembled gam- 
ine fragments of medieval wan- 
ing, pinnacles a»d windows. 
Salisbury cathedral chipped in 
with lengths of superfluous 
stonework, on offer to poten- 
tial buyers, and I began to see 
a fixture for the fehric erf my 
Oxford college if the funds 
become much tighter. But it all 
seemed like an abbey garden 

and, where the planting had 

come right an the day, it main- 
tained a style around 1900. 

One of its best touches was 
the tall, white tobacco plants, 
but they had come over at 
short notice from the Prison 
Service garden on the site 
opposite. 

EM’S glasshouse director 
described how he and his s taff 
grow fresh vegetables for the 


major sites behind bars. When 
tempers rise in hot weather, 
they can send in a fresh salad 
on demand to divert the 
inmates, la the recent down- 
pour, they could also lend bed- 
ding plants to the best of tftk 
year's newspaper gardens. 

Inside the tent, the and 
the spectacle still smmap me. I 
know that it is the world’s 
largest tent and foa* the gfci** 
go cm forever, from the lupins 
an one side to hints for the 
disabled on the other. Just 
before judging, it looks hke a 
miracle as wave upon wave of 
flowers, stretching farther 
than the eye can see. await 
their prizes and a royal visit 

This year's stars were well 
commemorated. Woodfleld 
Brothers, of TMdiugton, near 


(0789-205618). crowned their 
superb display of new lupins 
with a pale pinkish number 
called Gloria Himrriford. Peter 
Smith, of Ghanctanbury Nurs- 
eries, AsWngtan, West Sussex 
( 0 9 0 3 -8 

92870), is making real progress 
with the and odour of his 
hardy alstroemiras, and every 
gardener now needs to con- 
sider them for new borders as 
they rise up the social scale to 
the names of yet more prin- 
cesses (including Elizabeth, a 
superb, low-growing innova- 
tion). 

The earner-piece of the S&N 
Brack! ey (Wingrave, Ayles- 
bury, Bucks 0296-681384) sweet 
pea exhibit was a big bowl erf 
the latest pale pink variety, 
warned Erl Te Kanaw a far the 
50th a nniversary of the sing- 
er's birth in New Zealand. 
Opera-going gardeners ought 
to go for this heavenly cut 
flows- with such an excellent 
scent 

Among the big set pieces, I 
need hardly say that the best 
was Notcutts Nurseries of 
Woodbridge, Suffolk (0394- 
383844). Notcutts is master of 
thp huge exhibit, and thin year 
it excelled among same strong 
competition bec au se it seemed 


to know how to arrange col- 
ours, keep out horrors and. 
avoid kitsch. 

It staged a series of separate, 
a djarent colour schemes in a 
sequence that developed as we 
walked round the ropes of the 
stand. It took us from pale 
pinks to dftrfc peoples reds 
and round again to fresh 
whites and a final flourish erf 

ypnM pfriladatp hug r wmjnd 
US Of fho Miinnwr nTwari 

Notcutts placed colours to 
such advantage that it could 
even get away with two erf my 
personal hates, the pink cherry 
Kanzan and yeQow-variagatfid 
Acer dnrnrninndti In context, 
even t hese famies acquired a 
certain dwnn* but 1 wish they 
had never appealed to so many 
of our town planners. 


Since the mid-1980s, the 
smaller exhibitors are the peo- 
ple who have lifted the show to 
a new quality and 
Gone are dreary old pens of 
alpines and the awamri cle- 
matis, shown on «««« against 
canvas. 

Exhibitors are marvellously 
clever at moving large cumb- 
ers in tail flower and rearrang- 
ing them naturally- valley cle- 
matis managed tail, white 
arches of the fragile vtticbeUa 
forms, whSe Peter Beales 
Roses, of Attleborough,- Nor- 
folk (0953-454707), even con- 
trived to show a life-like arch 
of the little, pink-flowered 
Himalayan musk roses which 
will not be ciiwihmg up my 
beastly old co n i fe rs, or show- 
ing any colour, until mid-July. 

At the lowest level, the 
Alpine Garden Society put on 
another of those wWMfai 
which emphasises its standing 
among our specialist groups. 
Its president bad contributed a 
plant of a heavenly white 
axalis, collected personally in 
the Falkland^ and its Himala- 
yan poppies were foe best in 
th e show, inftimWng the rare 
red as well as the huge blues 
and foe pale lavender farm. 

These poppies are a heart- 
ache to me because they hate 


my dry sofl. But I can grow the 
encrusted saxifrages; their 
sprays erf white flowers are so 
obliging, yet used so rarely by 
keen gardeners who want to 
enliven the next two weeks. 

Perhaps it was a dark, rain- 
laden sky but my lasting 
impression f ro m year lay 
with the many shade and 
damp-loving pTarifce which the 
smaller stands show to such 
perfection. The Paradise Cen- 
tre, of Lamarsh, Bures, Suffolk 
(0787-289449) had even brought 
a perfect example of the white- 
flowered Japanese gfanrirthnn . 
which prefes woodland and is 
hartfly ever a visitor to Chel- 
sea. 

The many new and large- 
leaved hostas at Goldbrook 
Plants have totally revived my 
interest *tiH fondness in foe 
family: Londoners in shade or 
with large pots should pay spe- 
cial attention to the list from 
Home, Eye, Suffolk 
(037975-770). 

Glebe Cottage Plants, of 
Warkleigh, North Devon 
(0769-540554) had caught foe 
dampness of the exteri or with 

a s plendid Country planting of 

pale flowers, unusual polemo- 
niums, a wide carpet of moss, a 
half-open uttie gate, apd a pair 
of gardening boots. 

1 have concentrated on the 
showing because Chelsea is 
above all a show. Anyone who 
tWniot thtrt many of its exhib- 
its are somehow being bought 
in from the mark et at short 
notice is very fer off the mark. 

There have always been 
anmo question mark s sm ^ they 
have bad their p ublicit y tw« 
year. But the fact remains that 
the majority of foe exhibitors 
plan their display for months 
even years, in advance and try 
to excel in e ve ry thin g for this 
«rw> ncwMtinn, even thoug h foe 
Royal Horticultural Society 

pays thwn nothing and they 

are not allowed to sell stock 
during the main duration of 
tho display. 

The exhibitors this year were 
requested to display notices 
ass u ring foe public that every- 
thing shown bad been grown 
or raised in the nursery itself. 

To my eye, the fact has 
never been in doubt, because 
we are all being transported 
briefly to heaven by the 
focused efforts of the most 
whole-hearted growers in this 
country. 


‘ Perhaps it was a rain-laden sky but 
my lasting impression lay with the 
shade and damp-loving plants which 
smaller stands show to perfection * 


Stratford-upon-Avon 



Stephen Woodhwne (pictured Ml) came across a kmg-ionjottan ganien hi the grounds of Dontoad Hal. in Dareet, teat summer and know K was 
■peclaL Wandering around he found an old, grey-paHed door set in a high brick anIL BaNnd ware a aarias of crumbing greenhouses with ferns and 
Ivy growing «ld in the cracks and creeping jenny and hart) robert to batman. Woodtame recreated Oils at Chelsea this weak and won a gold nwdaL 
Jama* Msidmcnt, the head gerdanar at Donhmd from 1915 until his rs t hement (Inset) worked in the greenhouse* so carafuSy re-created at Chelsea. 
The dwa garden designed far You magazine and Yartley, am named Mr Ma fc fa nant* » Gadan. now o*r Q-* 


Fishing/Tom Fort 

It rained and the salmon sulked 


S ince returning from a brief 
sortie to Scotland, I have 
been chewing over weighty 
matters. Chief among thwm 
is a question with momentous 
implications: oh/mld I take salmon 
fishing seriously? 

The obstacles and objections are 
several and considerable. One is my 
economic base, which is quite rocky 
enough under gristing burdens; 
(and serious sahnan fishing tends to 
cost serious money). For another, it 
is an austere and taxing business, 
and I am not at all sure that I am 
up toit 

The odd thing is that I should be 
entertaining the notion at aB, in the 
ti ght of my experiences during 2 % 
days on the Beauly, the famous 
Hi ghland river which runs into an 
extension of the Moray Firth just 
round the corner from Inverness. 

For, in foe course of a good many 
hocus of pretty single-minded fish- 
ing,! wmgiifc precisely nothing. And 
- before you jump to unflattering 
conclusions about my competence - 
no one else did much better. There 
w ere just four fish fin* the week on 


the whole river. 

I am happy to admit that factors 
only distantly related to fishing did 
contribute to my enjoyment the 
trip was free; foe hospitality was 
bountiful; foe food in the lodge first 
rate, and foe drink offered without 
stmt; foe music of foe rushing 
water outside my window soothed 
me into deep, reviving sleep; the 
snow on the mountains, the sun- 
fight on the green valley and the 
sparkling water were lovely to 
behold. 

Pleasant though an these were, 
what sticks in the mind is tile river 
qnri promise — alas unrealised - of 
that most thrilling of quarries, the 
spring salmon. The beginnings, 
however, were unpromising. It was 
a threejersey morning, and 1 had 
an just one, plus a waxed jacket 


which was no longer waxed and let 
thp rain through. A s a result of thp 
weather, and standing in wades up 
to my waist, 1 was reduced within 
hours to a state of shuddering deso- 
lation. H this he Mhnnn fishing , I 
remonstrated as I thrashed my 15ft 
rod at foe steely, freezing s tre am, 
you can keep it Take me back to 
England, fast. 

Thereafter matters looked up. I 
borrowed another jacket, put on 
more jerseys, and the sun came out 
Faint memories of how to propel a 
salmon fly a reaso n able distance 
returned to me. I began to see foe 
river, not as an enemy, but as a 
great vital force. And the idea of 
the salmon within it toed; tadd of 
my imagination. 

It is a super river, foe Beauly - 
big but not too big, blessed with 



magnificent sweeping pools and 
racing shallows. The bottom three 
miles, down to Lovat Bridge at 
Beauly, is the best of it The Middle 
and Upper river are visually 
Unpaired by hydroelectric dams 
{which do, however, have the bene- 
fit of ensuring constant flows even 


at times of severe drought). More to 
the point the Beauly is extremely 
productive, with around 1400 fish 
last year. 

That impressive tally reflects the 
profound changes which have over- 
taken the river in foe past four 
years. For centuries it bad been the 
chief glory of the great estates of 
foe Frasers, the fete 
Fraser sold it to a property com- 
pany for in excess of £10m. The sub- 
sequent revolution has been 
inspired by the appetite of investors 
to see a return for their money. 

Now, we all know that t anesh are 
has become a dirty word. William 
Midwood - the genial driving force 
behind the Beauly Fishings Com- 
pany - winces at it, and courteously 
insists that I call his customers syn- 
dicate rod holders. But the essence 


is the same: salmon fishers with 
cash to match their passion are 
wooed to part with big piles of the 
stuff, to obtain the right to fish one 
erf Scotland's great rivers. 

A flat payment of roughly 
between £20,000 and £70,000 secures 
a particular week in perpetuity. 
Thus far, only foe Lower River has 
been syndicated (the Middle and 
Upper are available at rents of any- 
thing tip to £3,000 a week for five 
rods). Fifteen rods can fish the 
Lower River at any one time, and 
almost all the rods in foe prime 
time - which is July - have been 
disposed of 

I do not propose to go into the 
controversial aspects of river syndi- 
cation. Many object to foe hard- 
headed commercial exploitation 
which is essential to it, and to the 


attitudes which the customers bring 
with them. In foe case of the 
Beauly, the company paid a huge 
sum and it needs to get a return on 
its investment There has been a 
massive investment in the river 
itself which would have been incon- 
ceivable under the old system. 

If William Midwood is able to 
restore the spring runs, he will be 
able to sell more of his rods (by the 
way, if you are interested in any of 
this, ring him on 049885393). But 
there is, too, a genuine longing - 
both in Midwood and his ghfllies 
and everyone else involved in foe 
crusade - to do improve things for 
the river itself 

I suppose 1 was infected by this 
enthusiasm, as I fished down the 
great pool below the dam at Kflmo- 
rack; and down another beneath the 
frowning walls of Beaufort Castle. 
There were few fish about but it 
was tremendous to be in the water, 
powering out the line, seeing in the 
ramd the swirl of the take , hearing 
the protest of foe reel And I 
thought If I had the money, I could 
do worse than spend it here. 



son one for managing a 
lony of bees is that they 
e in charge and you had 
tier not forget it 

vo is that you b^ in at 
he hive and work down- 
rwiseyon disturb all the 
ice which may annoy 


iHson three is that you are 
Bring a pnHifafti economy of con- 
arable sophistication and a copy 
foamas Hobbes’ Leviathan might 
ne fa handy. 

Bride the hive, crenmimal l ife i s 
Sc with foe sap now coursing 
tiogh the Famines and bright 
tow rr purple flowers are sod- 
& abundant. 

ujbretta tumbles out of stone 
® and each patch of spare 
offers a welcome mat of 


''taitpbe had in saddfcxls nectar 

' Jj^gin ewa the least prized of 
Attar long months of icy 
the hive's economy is 
00t * ni ng so vigorously that it can 


Beekeeping / Gerry North am 

A ruthless 
way for a 
reign to end 

Why the workers overthrow the queen 


support 60,000 workers, which is 30 
tinw its winter population. 

As you look down an them at 
work, the wide image is of a bewfl - 
rtgnng tnaw seething with bustle 
and muddle, like maggots in a fish- 
erman's tin. But each close-up 
reveals a skilled worker carefully 
sidestepping her neighboore as ^ 
goes about her task with calm effi- 
ciency, and the pattem _ soon 
appears erf a densetyataffed Fonfist 
workplace in which foe ceaseless 
activity of- individual cett^Hriws. 
guards, foragers and broo d purses 
contributes precisely to the survival 

and welfare of the Tfoole- 

if you lift out the frames of comb 
one at a tune and search tong 
enough, yon may 
■whose task never changes through- 
out her life. She is foe queen, foe 
gnpreme economic decision-maker, 


foe sole egg-layer, the ahadtete 
ruler with power to ordain success 
or faflure far foe communal' effort 
ft can be difficult to spot her 
because, apart from her extra 

length, Bhft looks IHwitiwl to the 

workers around her and tends to 
move hi a cluster of attend a nts who 
keep her hidden from view. But 
nwy you find her and follow her 
apparently random progress, you 
can observe foe policy of foe hive 
being, literally, laid down. 

She glides over the face of the 
brood-comb, occasionally stopping 
to shimmy her long abdomen back- 
wards into an empty cell and lay a 
tiny white egg at foe bottom. She 
can, at wHl, lay up to 3400 in a day. 
Or she can lay none, ft is a critical 
jud gment and if she gets it right, 
then the changing rize of foe work- 
force through the season will match 


the needs of the hive. There are 
dangers cm either side - if she lays 
too few eggs, she will leave the hive 
un d e r staffed during the honey-flow 
and unable to build up its stores; 
while if she lays too many eggs, she 
will produce a surplus of mouths to 
feed, ft is a difficult bala nce to 
strike and in Buxton, Derbyshire, at 
the very margin of survival, there is 
almost no room far error. . 

- So while the hive is looking fine 
economically, there must be doubts 
about the resflteace of its political 
constitution which places all 
responsibility on oam pair of shoul- 
ders. Are the checks and balances 
in order? To put ft b luntly, wbat 
happens if the old girl loses her 
touch? 

The answer is rea s su rin g, except 
far the old girl tn question. The 
social contract among bees provides 
for absolute monarchy during a 
queen’s reign bat-permits her no 
part at an in foe succession. 

. Exactly as set out in Leviathan, 
foe sovereign’s enjoyment of total 
power may be brought to an abrupt 
end at any time by a "deadly upris- 
ing of the mob. ft does not require a 
tumbril, merely the leveHtog stings 
of a dozen worker bees and, once 
fite deed is done, foe mob toms 
from regicide to the pro- 

duction of a new queen of its 
choice. 

ft is a i rinmnih of constitutional 
Tufoteaanesa which tids foe hive of 
ineffective monarch* and mares ft 
foe embarrassment of useless hefts 
to the throne. You do not need a 
microscope to see that honey bees 
are bom without forelocks. 


Country View/Michael Woods 

Beetles on the menu 


I was sitting in the kitchen 
reading tile paper one evening 
last week. Almost unnoticed it 
had became dark outside and I 
bad Tight on although thp cur- 
tains were still open. 

Suddenly there was a loud dank 
on foe glass. 

For a moment 1 was taken by 
surprise but then I realised that ft 
must have been a May bug or cock- 
chafer beetle. These are scarab bee- 
tles, relatives of the dung beetles, 
but are plant eaters. 

While the May bug does a good 
job in keeping the countryside 

f Irani chafers can be harmful The 

cockchafer grub is that white plump 
larva sometimes dug up in the soil 
when gardening. These grabs feed 
on the roots of grasses, cereals and 
soft fruit and, as they live under- 
ground far three years, they can eat 
many roots tn that tnw» 

A good summer for cockchafers, 
when the female successfully lays 
many eggs, can mean problems for 
fanners and market gardeners for 
several years. 

Rooks are very fond of the grubs 
and do a good job of finding them in 
the sofl. In fact the cockchafer 
grab’s nickname is “rookwonu“ and 
rooks probably do a great deal more 
good than ha i i n fa foe fields. 

The lame finally turn into sew 


chafers in the autumn but the bee- 
tles remain underground until the 
following spring when, in May or 
early June, they emerge from the 
sofl and can be seen flying around 
the countryside. 

They are large and heavy insects 
with thick brown wing cases which 
are held open and dear of the wings 
when the beetle is in flight. 

Cockchafers can be 
pests — but are a 
valuable food source 
for several mammals 


Although they make a loud and 
alarming buzzing sound and fi-e- 
quently crash noisily into objects 
wheat Hying around, these beetles 
are harmless to fannang As adul ts 
they eat only a small a mount of 
vegetable food, foe foliage of decidu- 
ous trees, and do far less harm titan 
their offspring. 

In fact cockchafers are a very 
important food source for several 
TnammaTs. Badgers eat large num- 
bers of foe larvae and, if they find 
an area where these are prolific, 
they will turn over the grass and 
bore down through the turf -in their 


efforts to obtain them. 

The damage to the grassland 
looks dreadful but they are doing a 
great deal of good in the long term. 
It is rarely possible, however, to 
convince green keepers and lawn 
lovers of this at the time of the 


Greater horseshoe bats specialise 
in eating cockchafers in the sprin g 
And, for a bat needing to eat half its 
own bodywetght every day, they 
must be a valuable source of nutri- 
tion. The hats probably capture 
cockchafers on the ground as they 
do beetles. 


immediately before take-off and this 
will attract the bat which then 
pounces, picking foe beetle up and 
canyingit off 

The bat only eats the soft parts 
and even a bat as large as the 


hang up to deal with an inse 
big as the cockchafer so 
remains of wing cases and 1 
hard bits collect undernea 
favourite perch. 


roots. Consider for a moment w 
you next eat strawberries in 
summer sunshine, that you r 
hare bats to thank for thm^ 




XVI WEEKEND FT 


S een from above, the great 
river wound in easy 
curves through the dull 
green of the forest - like 
an anaconda, I thought, 
wishing vainly that a more startling 
metaphor would came to mind. - 
It was terracotta in colour, thick 
with the red earth washed down by 
the rains 1,000 miles to the east The 
aircraft wheeled, and the river 
burst into foam over the fabled 
Falls of Iguacu. Several Germans, 
bristling with cameras, rushed to 
the windows to obtain views. My 
own was blotted out by a backside 
in green stretch pants. 

Alas, poor Niagara, Mrs Roosevelt 
sighed when she saw the Iguacu 
falls. And they are an astounding 
sight, curving in a tumultuous bow 
from the Brazilian to the Argentine 
banks of the River Iguacu. The cata- 
racts - nearly 300 of them - extend 
over two miles, broken by islands 
and outcrops. The grandest, part- 
obscured by the plume of spray 
drifting skywards to form an ever- 
present cloud, is tight against Bra- 
silian soiL 

As if resentful of this, the Argen- 
tines have built a squat, modernis- 
tic intruder of a hotel below the 
fails Brazil's elegant answer is the 
Hotel Cataratas, a splendid con- 
fection in pink and white, like a 
wedding cake deposited in the som- 
bre green of the forest It is a com- 
fortable place, thronged by a stream 
of tourists as constant as the thun- 
der of the waterfalls. 

We were there for five days, 
which almost qualified us as resi- 
dents. Our purpose was to explore 
another river, into which the Igu- 
acu debouches 15 miles down- 
stream. This is the mighty Parana, 
which rises in central Brazil and 
flows 2,000 miles until it joins the 
Uruguay in the estuary of the River 
Plate, in Argentina. 

This information I had from 
books. But nothing could have pre- 
pared me for the shock as I stood 
beside the Parana for the first tone. 



Iguacu Fals: where the river bursts btto t 

I was silent as I looked across to 
Paraguay on the far side, hair a 
mile or so away. Between me and a 
country about which I knew little 
beyond the reputation of General 
Stroessner, extended a brown, surg- 
ing flood, marbled with competing 
currents, boiling with terrifying 
whirlpools. 

Had someone told me that its vol- 
ume exceeded that of all toe riven 
of Britain put together - or of 
Europe - I should not have been 


surprised, for in places the Parana 
plunges to a depth of 600 ft, and the 
water travels at a terrific speed - 
the pace of a galloping horse would 
be near toe mark. 

The base for our operations was 
the whimsically-named late (Yacht) 
Club das Cataratas. In iifla periods 
when the fish were not biting - yes. 
I was there to fish, and yes, there 
were many such periods - we 
would discuss with our host, 
Edward, how he might stage the 


FINANCIAL TIMES WEEKEND MAY 28/MAY29_1994 


TRAVEL 


Unprepared for 
the shock of the 
mighty Parana 

Tom Fort explores a thundering river in the Brazilian 
rainforest and hears tales of things curious and inexplicable 

S een from above, the great 
river wound in easy 
curves through the dull 
green of the forest - like 
an anaconda, I thought. 



— « — ■* t . uf I 1 It, „ 

run W 19 nw «m oosxn in© raranti 

inaugural late Chib regatta, a pros- 
pect complicated by the certainty 
that any fate launched Into the Par- 
ana would be washed up in Argen- 
tina before a jib had been raised 
above a bowsprit 

The late Chib is one of the more 
prestigious amenities of a town 
called Foz do Iguacu. in tones past 
Foz was no more than a sun- 
drenched, slumbrous frontier post 
In those days, the Parana was ren- 
dered impassable a few miles 
upstream by the Falls of Guayru. 
Now the biggest dam in toe world 
stands tome, Wapn, which supplies 
much of Paraguay and a sizeable 
slab of Brazil with power. 

Fifty mm came to build 

the dam, and turned Foz into a 
boom town. Across the water Is the 
Paraguayan town of Ciudad Presi- 
dent e Stroessner. whose tax-free 
shops and rmimw keep the soaring 
bridge over the Parana clogged with 
traffic. Visitors pour in to see toe 
fails and the dam, and to enjoy the 
attractions of Foz itself. 

Among these, the chief appears to 
be sex at a modest price. The placs 
is studded with dubs - with subtle 
names such as Sex Appeal - which 
comprise dance-floors infested with 
meagrely-dressed young girls, and 
knocking-shop farinttes through a 


O n toe river, we were 
whisked about in a 
high-powered speed- 
boat with cushioned 
seats and a box filled 
with ice and beer, piloted by Jorge, 
a dark-skinned humorist with a 
gf eamfng set a f teeth sent through 
the post by a grateful client, and a 
bullet somewhere in his head, a leg- 
acy of a lawless youth. With him, I 
gradually lost my nervousness of 
the Parana, though never my awe. 

Opposite Fez, on the Paraguayan 
shore, extended a succession of 
extravagant villas, refuges - so we 
were told - of drug barons, arms 


side door. "They'd be most offended 
if you thought they were whores,” 
Edward explained. "They call them- 
selves programme girls. Lots of men 
many them. They make very good 
wives." 

More congenial by far were the 
restaurants with gHstening, barbe- 
cued meats carved from skewers on 
to your plate, and others where you 
dipped into an earthenware pot 
bubbling with prawns, squid and 
mussels cooked in coconut milk; 
and with everything that superb 
drink of Brazil, coijparinha: cane 
spirit poured over crushed ice, 
sliced lemon arid sugar. 


dealers, «nH crooks of every shade. 
Once do w nstre a m, toe sub-tropical 
rainforest dosed in on toe water, 
stretching away cm either- ride into 
immeasurabl e distances. It was a 
forbidding ri g h t, this rearing bar- 
rier of bamboo and palm and tan- 
gled trees with pale trunks, tike 


One afternoon, we beached an the . 
Paraguayan bank. We followed a 
path through the trees, led by 
Edward brandishing a metal hook 
with which he said he would fend 
off any of toe numerous venomous ‘ 
snakes with which the forest 
abounds. We saw none, nor any of 
the jaguars, pumas, tapirs or wild 
boar reputed to lurk in the shad- 
ows. But we did come upon a 
strange institute of lraming , mould- 
ering quietly in a clearing above the 
P arana 

It had been toe horns of Moyses 
Santiago Bertoni, a one-time Swiss 
anarchist who had fled to South 
America and devoted toe greater 
part of a lifetime of awesome indus- 
try to studying the people, the cus- 
toms, top creatures and ton plants 
of Paraguay. Here, stuffed cm sag- 
ging shelves, was the residua of his 
colossal library, 7,000 left out of 
40,000 volumes. 

A goodly portion be wrote himself . v 


- more thaw 500 hefty volumes; dic- 
tionaries of the language of the 
Guarani studies of anthro- 

pology and flora and fauna, all 
typed cm a primitive machine given 
to him by Theodore Roosevelt, and 
printed cm his own press. 

There were other relics of the 
wise man of Paraguay, as BertonTs 
adopted country knows him: his top 
hat, false teeth -and visiting cards; 
and, outside, toe trees he planted, 
and his grave in a little plot to one 
ride of the pale blue and brown 
wooden, house, together with those 
of three of Us 13 children, and a 
great granddaughter, only recently 
buried. 

The sun was dying when we 
returned to the boat As we made 
out way upriver to -Foz, Jorge 
related his own tales of things cari- 
ous and inexplicable. 

He told us of the woman who 
gave birth to a monkey; and 
another who conceived a creature 
half-human,, half-toad; and of a fore- 
man at the dam who bad resigned 
because bis wife had an. affair with 
their mastiff, and produced puppies. 

He spoke without his usual smile, 
and it was not until we had left the 
hiarfr, silent forest behind, and the 
lights of the town appeared, that we 
were able to laugh a gain. 



HOLIDAYS & TRAVEL 


HOTELS 


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London In 
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At £169 Per Room 
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Enjoy the bat of London this summer with our special 
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an English breakfast for two each morning, overnight 
parking and use of our pool and gym. Children under 14 
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on 071 K3I 8000 or see your travel agent. 


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W e did not have to 
rent an aircraft. 
We had been 
going to pop down. 
Madison Avenue, 
nip over to Penn Station, take a 
train to New London and hop on a 
Jerry. 


But our friend Jonathan is him 
that. By the time he drew up at the 
Mark Hotel, squeezing through. 
Manh attan^ getootof-town Friday 
evening traffic, he had switched to 
plan B. It bad been a cough week; 
we would do it the easy way - by 
air. 


As we wen swept across the Hud- 
son in his chanffeur-dnven car to 
New Jersey's Teterboro airport, sus- 
picions stirred: perhaps we had 
needlessly wallowed the day away 
amid the Mark's elegant luxuries, 
especially its renowned marble 
bathrooms, in anticipation of depri- 
vations ahead. 

But Jonathan's invitation for the 
Columbus Day weekend hnfl . after 
all, been to his wooden hide-away 
an Block Island. And Block T«i»n«i 
it seemed, was a no- socks spot 
- more natural, basic, casnai ap fl 
unsophisticated th^p the fashion- 
able retreats of southern Long 
Island and off-shore. Massachu- 
setts. 

The whole New York metropoli- 
tan area was switching its lfeftfo an 
as our little Piper Cherokee buzzed 
aver the George Washington bridge, 
painted at Mbntauk on the eastern 
tip of Long Island. Fifteen miles far- 


Island’s subtle thrills 


tfer north east. Block Tqjand was 
catching the day’s final, faint glow 
as we landed. 

In the terminal hut, Jonathan 
stretched across a rough counter, 
fished in a hidden Hgar box and 
extracted the keys of a car. A lew 
bumpy minutes in the old Subaru 
exposed the hide-away as an 
impressive, ample residence, with 
huge sun-catching windows and 
multiple bathrooms. But his synop- 
sis of the island had been tore sar- 
donic. 

Th e se 11 square miles of the state 
of Rhode TsTanH are a weekend 
summer playground for fflgrwnrhig 
escapists, a base and haven far east 
coast yachtspeople and a second 
home for a few hundred mwinland- 
ers prepared to expend more timp, 
trouble and money than it tev»y to 
reach the more conventional ref- 
uges. 

Block Tgtapd does not flaunt the 
fr »iL«t of old money the man- 
stems of Southampt on , or indulge 
the extravagances of East Hamp- 
ton's smart set It lacks the gay 
community of the more recently 
affluent and famnrtB of Fire fatand 
Strollers on Main Street do not 
nudge the shoulders of the sort of 
celebrities who grace Nantucket 
and Martha's Vineyard. Bid **»»» 


they would not want to. The thrills 
they seek are more subtle. 

Tha island’s imapnOt fhgrarftsf - is 
nurtured by a caring commu- 
nity. They defend its beauty and 
character, not least for - and 

a gainst - the TmiUftndng by Whom 

they ere mobbed far nine or 10 sum- 
mer weeks. They are proud that 
nature conservancy organisations 


for a rest, raising their population 
to 100 species. Monarch butterflies 
stop by en route to Brazil. Fisher- 
man cast into th» surf in peace 
after striped bass and bluefish. The 
miles of excellent beaches see few 
swimmers. 

Walking is a delight over the 
bluffs and dunes and along the nar- 
row roads, defined by low stone 


Alan Ponsford flies from New York 
to Block Island for an uncrowded, 
unspoilt gentle holiday weekend 


own a fifth Of the land , riichuHng a 
wildlife sanctuary. 

Typically, a public subscription 
haq prtahlari thorn to move the lODg- 
riteng gri southern lighthouse hack 
from the eroding Mohegan Btoffe. 
At the other end of the island. 
North Light has been restored as a 
maritime museum complete with, 
working light. 

The invading torrent had slowed 
to a trickle well before out arrival 
in early October. After Labour Day, 
as in spring, the island is a gentle 
place, its natural attractions better 
appreciated. Migrating birds drop in 


walls, nearly bereft of seasonal 
flocks of mopeds and bikes. Save for 
a few Japanese Mack pines, most of 
Block Island's once prolific trees 
long ago lost the battle with tearing 
Atlantic winds. The remaining low 
scrub and pasture glow with honey- 
suckle, wild roses, viburnum and 
Queen Anne's lace at their 
appointed times. 

Many impressions of a colourful 
history survive. Names recall the 
early settlement of Mania see 
Indians and the inv ading Mohegans; 
that of the island itself was taVpn 
from Adriaen Block, a Dutch fur 


trader and navigator, who landed in 
1614. 

Bocky coast, tall clifls and old 
lighthouses suggest the piracy, 
smuggling and shipwrecks of the 
18th and 19th centuries. And the 
handsome legacy of Victorian days, 
when the island became a fashion- 
able resort for the wealthy, are the 
imposing, prim hotels fans that 
hoarflpd thp™- Still thriving around 
Old Harbor, they display the dis- 
tinctive architecture of that era, 
touched with the flavour of New 
Ragland In wrap-around porches for 
rocking-chair views of the passing 
scene. 

At the poshest of them, a room 
with hath costs at least $150 (£100) a 
ni ght to high seq«ipn . But there are 
plenty of much Cheaper boarding 
houses and B&Bs. 

On Saturday morning's excursion 
into New Shoreham. the only town, 
trade was slack in the crafts an d 
souvenir shops and boutiques, but 
among hammocks, brass lamps and 
8aflbags in The Boat Works store 
we found honey mustard and wild- 
flower honey to take home. 

We watched the car ferry from 
Point Judith, Rhode Mhtmi tie up at 
State Pier. It comes all year in 
about an hour (passengers: $6.60 
cue way). 



The ferries from New London. 
Connecticut, and Newport and 
Providence. RI, take longer and do 
not operate in winter. 

The summer ferry from Montauk 
berths at New Harbor, within the 
nearly-land-locked Great Salt Pond, 
so named by early settlers, which 
provides anchorage for up to 2,000 
sailboats at peak weekends. Alone 
among deserted moorings, Jona- 
than's cat-boat bobbed, forlorn, 
awaiting Ins guests. 

Alas, lunch with his Saturday cro- 
nies proved too convivial. Anchored 
on barstools at The Beachead, a jos- 
tling yet laid-back establishment 
across the road from a sandy shore- 
line, we indulged exces si vely in the 


luscious local seafood, which is the 
mainstay of the varied, all low-key, 
restaurants. 

The Americans drank near-frozen 
Baca the Brits martinis. Among the 
former, extolling the simple life, Joe 
from deepest Connecticut struck me 
as an artist - until he identified 
himself as a dealer in coffee futures 
and in search of someone to buy a 
half share to his private aircraft. 
Even Hock islan d must defer to the 
real worid. 

■ The train fare from Neu> York to 
New London is S&4 return A char- 
tered air craft from Teterboro costs 
$400; from the nearest mainland 
points: $40per person, minimum $80. 



J 



V 


REIMS & 
CHATEAUX. 

Relais Gourmands 

"The World's Finest Chain of Hotels 
and Restaurants" 

For information, individual hotel brochures 
and details on how to obtain the 
1994 International Guide, contact 




. Relais & Chateaux, 7 Cock Street 
LONDON W1X2AB 
Tel: 071 287 0987 Fax: 071 437 0241 


m: \ijn is ini; i.rxntv 
o i o i u i i m i; s : 

wii sun » iiii i; ii’^ 
i:m> ! IT DC.\( K 


n i /,:• i i< -i \i i / \ /* u /v i< 


/>•■/ 1550 . 


JERSEY 

Far from the 
madding crowd... 

Jf you're looking for peace and tranquilly 
with supeb service then you'll findft 
at The Altaic; 

0% of Jersey's top 4 star bolds. 

Td (0534) 44101 

AstfeyOmiugadEg 




VITAL HOTEL ROYAL 




yfflcntk Hotel 

ihmiKSjslxTw r 


ufloriau*. 

JneyJESaE. 


AVMC***+ 


8 SELSDON PARK 

Hotel . SPECIAL ITY 

GolfCouhss WEEKENDS 

Lkisuhe Club 

Pood A Whs 

40jmanoM H E A LTH A 

CmnxAL Beauty, 

London , T™ as ’ 

FITNESS FROM 
£56 

PER PERSON 

sandobiead. pas night 

souihcrotoon. „ ... 

sobhh Tel: 0818678811 


[ to IUMSTB1 

J60PM26 


THE CAJLLY PALACE HOTEL & GOLF COURSE 
GATEHOUSE OF FLEET, 

DUMFRIES AND GALLOWAY DG72DL 

wwww ScottMTouMBoari MIKE AA****RAC 
Set in bs own grounds within 600 acres cf Reel Forest. 

The Cafly Paiacu Is ona of the most bemrifuf locatiorcs in ScatiencL 
56 luxurious bedrooms and suites, fine food and ttomSy pfOteedonal 
service. VWWn the grounds there Is an 18 hale per 70 gotf come much 
df R In mature wooded areas and arowid Celjr Late. Also, there b an 
Indoor leisure centre, outdoor tennis, puffing, ooquet and boating. 

-avwythlng otl•eouldw^■h1or- 

fa^awe^>fca1or1ri8«<*l^ Bfawt, ■»* 

TENNIS WS=K - tun tor afl - starts 31st My 
3 night summer break from £174 per person 
or from £204 per person induce rf qo& 

telephone 0S57 814341 12 


EE53 LONDON IN STYLE ES3S B3 


At This Superb Town Hoose Hotel 

CORPORATE ROOM RATES PROM JDST £51 FULLY INC LUSIV E 
WITH COMPLEMENTARY CHAMPAGNE' WELCOME OFFER 

OvedooJdna Hyde Park * Private Cm PWfc 

55 PwsontBsed Rooms ’ PauamatUBm 

Detect Rooms ASdtas * 24 Hoar Room Service 

LONDON ELIZABETH HOTEL 
T ypwwtw Terrace, Hyde Pa*. Londo n WZ3 FF 16 

Tefc 071-402 6641 Fac 071-224 


18 


HI GHB ULLEN 

Country House Hotel, Chittlehambolt, Noth Devon 
• Secluded Yet Marvellous Views. * Igghly Rated Restauran t 
* 35 Double Rooms With Bath. Colour T.V. 

In all the impartial Hotel Guides 
£47.50 - £70 per pew®, indiH&ig dinner, breakfast, sendee, 
var and UNLIMITED FREE GOLF 
OVER 10 MILES OF SAIMON & SEA TROUT FISHING 




RIVERSIDE LODGE 4 ensuite bedrooms 
self catering (soviets available). 85 acre anew* woodland. 

Telephone 0769 540561 


f a !® 8 s P oteI | 

folkstone* pros® hotel 

Ek^stltigrnry Srilu rWtop hotel 

aw «■ — ff f] 

welcome tray. telephone. Solarium. 
CLIFTON WEEKEND BREAKS 

2 Bed A Breakfast £65 pp 
2 night* Dfamer BAB <M pp 
3 nights Dinner BAB (omtindndc 
«Snnday)£132pp iarinrfmg VAT 

AKTOBE BREAKS 

2 rngtin Half Bond Iran £100pp lac 
5HBTOY F€5TNAL-27Aau In* Sspt M 
60 wried A aciiiag ran 
■ftuvul’bsoo 
pspahCEffTbp Air Show, 

(0303) 

L851231 




Escape to this most ezduaive 
address- Elegant 19th cantary 
town house hotel, situated in 
the baautiftal BUrrotmdings of 
Bury St. Ednrands. 

Intimate and friendly 
atmosphere; antiques and 
period touches throughout; 
delightful I t alian garden; six 
luxury bedrooms in cl four 
poster decorated to thfi highest 
standard. 

Weekend breaks from £110 tar 
two persons. Treat yourself 
to the best. 

Johansens recommended 

EIB Highly commanded 

BAG Bifddy A cclai m ed 

Teh 0284 704088 

Twelve Angel EGO, Bury 
gt-Edmimds, 5dMk IP33 1UZ 


GET LOST 


In a luxury Connemara 
hideaway by the sea. 

An oasis of riaractor, calm, cfaann, 
comfort and emsine. Our own 

Ii wrii, «w<«, rnrtrm»»lw; 

100 year old gardens, fishing, 
tennis, boats, riding, sables, mrf 

fires, pets welcome. Library and ' 

mini-suites. Golf locally. 
CASHEL HOUSE HOTEL 

CONNEMARA Co. Galway 

•Maes Peon Aurmaue 
but otar 3 Hota&mcaf London 



wzium 19na> 

uenousm 

AAMXDONn 

37 SCCL*STQN SQCAEK,- 

VKMTHUA, LONDON 
5W1V lPS.T*q S71-S284SZ2 . 

friendly, jatede hotel ia ideal, 
cenasl,qde *l ocsacaoyc Bl o n klng 
DSgaificeOl gaidsw of study 
leddeatial sqsBB, dose B 
Bdgnria. Casfodabto Single* 
fraatlKML 

DosMa/Teins4oB XSaOTand 
Fsnrily Room* from £73J# 
gpod 

ENGLISH. BREAXF AST * VAT. 

jUntonrlMnwAadb 
>pfta tt(ah. ht3 i u sft i ) 
COLOUR BROCHURE , - 
AVAILABLE 

Eflon Ronay/RAC Recommended 




Although within easy reach of London and the Home Counties, 

Nutfield Priory 

is an oasis of tranquillity in 40 acres of its own grounds and with 
breathtaking views of Surrey and Sussex countryside. 

Anytime break rates include: 

Accommodation in double/twin bedded rooms. 

Traditional English breakfast, 

3 course dinner and coffee in the award 
winning Cloisters Restaurant. 

Full use of luxury leisure club's gym, pool, 
squash, sauna and much more, Newspapers, 
turn down service and VAT. 

£40.00 per person per day. 

2 nights minimum stay. 

NUTFIELD PRIORY, NUTFIELD, REDHILL, SURREY, RHl 4EN. 
TELEPHONE: RECEPTION (0737) 822066 FAX(0737) 823321 

Deep in the Sumy countryside, readily accessible, with breathtaking views 
and extravagant architecture and design. 





* 4 vg T5N 

^Scotland’S ^ 


Central Reservation Office, 
Suite 2d, Qiurchlfl Way, 
Bldiopbriggs, 
Glasgow G64 2RH. 


Choose a ‘Heritage Break* at one 
of Scotland's leading independent 
country bouse hotel* and enjoy the 
true Savour of Scooith hospitality. 

12 hotels, each with it’s own 
architectural or historic interest, 
offer special short break rales at 
prices that make l uxury truly 
affordable. Send for our free colour 
brochure or telephone 

041-772 ML 



6 A aelBction of betels and rasm—nis of dhMncBon In Qwmplan 


glands and Aberdeen, an area renowned for its 

beauty and variety 


MAUWWSKf TRAIL, CASTLE TRAIL COASTAL TRAIL 

ROYAL DEESIDE, GARDENS, GOLF, RSHMG, RffHHG 

Send for a 6m copy or phone (0224) 632727 (Zthouis) 


Tartan CoBecUon, 967 SL Ifehotas Hous* Aberdeen AB9 IDE 


Nam 


Address 



Postal code 




- PARKNASILLA - 

In A Worid Of Its Own 


13 



Set beautifully amongst 300 acres of rolling 
parkland overlooking Kenmate Bay m Co. 
Kerry, the luxurious ParknasiHa Great 
Southern is totally devoted to giving you a 
wonderful holiday. 

Private golf cmnse. Indoor heated pooL Sauna. Tennis. 
Hone-riding. Windsaiflng. Deep s e a fiahing- 
Fnr detrikean FkrkMsilb 010 OS3) 064 <5122 orUTCLL Intenabonal 081 995531 

qp Great Southern Hotels 


WILLET 

HOTEL 

32 Sloan© Gardens 
London SW1W8DJ 
Telephone: 071-824 8415 
Fax:071-730 4830 
Telex: 926878 

SmaH character town 
house, off Stoane 
Square. 

AH modern facilities. Full 
English breakfast 
Inclusive 

of very modest rates. 

10 


THE WATER IS WARMER 
THAN THE PACIFIC. 


ii 


Plunge into our Romanesque 
swimming pool and ran to 
experience life in ihia elegant 
country house resort. 

Among the attractions are 
one of the finest new golf 
courses in England, a Health 
and. Fitness Spa. squash and 
tennis courts, with dining under 
the guidance of Albert Roux. 


Our Dedcor cwo-day 
Beauty Programme gives you 
a consultation with your own 
personal beautician and a 
package of five treatments 
tailored to suit you. 

Prices son from £160 per 
person per night sharing and you 
can arrive on any day 


NON STOP-OR FULL STOP? 

Which will yon emoy beat? The magnificent and 
luxurious Manor overlooking a beautiful wooded valley, 
or the huge range of leisnre and sporting facilities? 
Como ana decide for yourself. For Brochure contact: 

CO MBE GROVE MAN OR 

uom a country ai’Bp — 

Moaktoa Combe, Bath. Tetf 0225) 8349M F*x^Q22S) 834861 J 




NANSIDWELL 

The cosiest Country House Hotel in a Comish Garden by tbs Sea 
Best of Locel Seafood, Coastal Wales, wonderful gantens and log free. 
tn all Ihe unbiased Guidee inducing The Good Fbod Guide. 
From £45 pp (8&B) or£6Spp CA board) 

IMmian, Nr. Fttnouth, 

. ConwreBTRII BHU 

. 0326 250340 


inRMAKRU Ky 

HOTEL 

ns rnwww aa/bac *** 

BbAmuy, Nr. Hot, NmjM -... 
Trsdiriimil prfnit(y owaod ftteadly 

howl overiochiagNuioaelTrut 

BuboBE. Healed Moot pool, spa 

bath, anaes, biIbI gyaL billiard 
thoo-VUin Idas. ■ntk. . 
blzdwilsb, saH, ptay gslfr 
end view kwtoric places iaderihg 

' SeDddD^aaube Norfolk villus*, 

c ouanys ldo ead coml 

MZDWBpr AND 
wEBriS tp i m p 

SKOAL FOURDAIBOUDAJS 
' Tstepb— i rfj 74S7P7 

20 


XGONBONAY AA AW** BAC 

LczdbtBbkaks 


HOTEL 

Vie tad en Manor Boose. Satin 300 
eoei ofhmdds woodlmd. 
Idsally leased far entering the 
- beendflil Gwent Cimntuili 
Willi relw— p r a yi ed Iff Tnfdr ^n«> 
Wrist OufafAt Ytar. 
bdoor Pool A labors Fadhtise. 

fSffuOOi 


(Pri. Sat or Son) 

'.*■ >. - Ihe Critic Man or Hotal 
- . * CoUm Woods * Newport 
• Gwent ‘NP68SA 

TEL: 0633 418000 21 




LEARN TO PLAY GOLF IN THE IDYLLIC 
32 CORNISH SURROUNDINGS. 

For 23 y ears the Chough Hotel has run sports cornual golf tuition 
CO ur n eJ far beginners and high handimppera- 
New ihr 1394 are special courses for the 
mote advanced golfer. AH courses offer a murinrom of 
ldhoowm a t ns ctio p frwnaqoal^adPGAyof ntM i anal 
all pgr KcfpjTlt-a nrp to my rn n- j mwalwHi nf 

The eSke first dam accommodatio n with 

bar and excellent food. 

GOLF HOLIEtAYS FOR EX PKHTENCKD GOLFKBfl CAN 
BE ARBANCSffD WITH REDUCED GREEN FEES. 

Fleaae phone 0288 362886 for 1994 availability and our 
comprehensive brochure or write be 

THE CHOUGH HOTEL 

^^BUD^CORNWMJU^^m^LBUPE (0288) 852386 ^ 



If you want to promote 
your hotel to a discerning 
& affluent audience 
don't miss the next 


ESSENTIAL 
HOTEL GUIDE 

ON 

25th June 1994 

For farther details ot to reserve 
your space please telephone 

ALISON PRIN on; 

0718733576 
or fax details ocu 
0718733098 


ESSENTIAL HOTELS BROCHURE GUIDE 

ORDER FORM 

Please oner the appmprisw umber for the hotel brochures yon would like to iccehre, eater your own came and address ml dam 
sead or fix (Us coopau » the address shows. Replies ant be leoetved no bar than 25 Jaw 19*4. 


1 . 

RaWakOliBU 

□ 

12. 

The CUly Palace Hotel 

a 

z 

Vhsl Uotd Soysl 

□ 

13. 

Oicsi Sootbcm Hotels 

a 

3 l 

Nsifield Priory 

□ 

14. 

Combe Qnm Minor 

a 

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BOOKS 


S ir Nicholas Henderson 
has written a curiously 
old-fashioned diary about 
his life and times as a 
British Ambassador, all 
of than spent in relatively main- 
stream places - Warsaw, Bonn, 
Paris and Washington, in that 
order. 

The final entry, after his depar- 
ture from Washington in 1982, 
notes suggestions from friends that 
he ought to have readied some con- 
clusions: for example, on "the con- 
duct of diplomacy in the modem 
age". He rejected the advice and 
ends with a French postcard featur- 
ing an ageing lion next to what 
looks like a shaggy dog. The cap- 
tion is La rebutted SO aits. 

Possibly the conclusions will 
come in another volume, for Hen- 
derson is a prolific writer and also 
a late developer. Mandarin drops a 
lot of names and a few clangers - 
like listening to jazz at the Reser- 
vation (sic) Han in New (Means. 


Diplomatic diary dodges the issues 

Malcolm Rutherford awaits conclusions from an ambassador dogged by late development 


The hook tells some good stories, 
several of them about Edward 
Heath. When the former prime min- 
ister arrived at the Gare du Nordin 
Paris on his way to collect an hon- 
orary degree at the Sorfxame, the 
porter recognised him: “Je wus con- 
tubs, n'est-ce pas? Vous tte s Mr Bar- 
old Wilson . " And when Henderson 
told Harold Macmillan that what 
Heath lacked was the influence of a 
good woman, Macmillan replied 
thoughtfully that a bad woman 
would be even bettor. 

Social details are carefully 
observed. The ambassador was not 
surprised to read that one of the 
few frivolous activities Margaret 
Thatcher had undertaken at Oxford 


was to learn ballroom dancing 
because he had already danced 
with her in Washington when Ron- 
ald Keegan felled to ask her. 

Sane of tim entries are men seri- 
ous: for instance, a visit to Francois 
Michelin in Clermont-Ferrand. 
Probably no foreign diplomat had 
met the old tyro-maker before. 
Michelin told Henderson that the 
French problem was that the peo- 
ple were not inventive; the educa- 
tion system did not encourage it 

Yet here there is a problem of a 

different kind. What was the 

ambassador doing in Clermont-Fer- 
rand in the first place? Apparently 
be went out of ids own admirable 
curious! ty. Michelin had recently 


MANDARIN 

by Nicholas Henderson 

Weiderfeld A Nkolson £20, 517 pages 

given an u np r e c edent e d interview 
to Paris Match about labour trou- 
bles at the plant Henderson read it 
only afterwards. 

This late development dogged, 
possibly made, his career. When 
Henderson arriv ed as ambassador 
to Bonn In 1972. he r eported to 
rninfon tfrat the German govern- 
ment "now regarded the British 
gov ernm ent as the ally with whom 
they SPeke first and whose views 
they expected to he closest to their 


own”. Some of us who were there 
at the time pointed out that he 
might he pushing it a bit Yet It 
took several years - and a promo- 
tion to Paris - for Urn to' realise 
that the Franco-German relation- 
ship (Brandt-Pompidou, then 
Schmidt-Giscard) would go on 
maturing. Like most of the British 
diplomats of his generation, he 
fefls to address why theywere none 
too keen on European uniat at the 
start 

There are other lacunae. Bender- 
son noted with surprise that some 
of the French regions have similari- 
ties with the German Lender. 
Doesn’t tiie foreign Office teach 
anybody anything, or don’t young 


diplomats travel? He was also 
taken aback by the fact that 
Britain's integration with the Euro- 
pean Community could be hold up 
by exchange rates and the .weak- 
nesa of stating - see his account of 
Heath's visit to Bonn In 1973. 

: Later be learned from the experi- 
ence. In his valedictory letter to ihe 
foreign office from Parts he wrote 
of how Britain's relative economic 
and industrial decline was bound to 
hamper the country’s diplomacy. 
The report was published in The 
Economist, yet must have been per- 
fectly obvious to anyone who bad 
read file magazine (let .alone the 
Financial Times) over the years. 
Still, It was greeted as a revelation 


and Henderson went on to Wash- 

. "possibly he spent 
abroad. His remarks about the 
.home country are ftwiuaitiy^^ 
.panqring, if true. "London, ne 
notedin 198% “with botes w ** 
roads and piles of bricks and corru- 
gated iron on many, abandoned 
building, sites, thr warning lipff 
' half fused, has a third world look 
about it”. A decade earlier be had 
been scarcely aware of the three 
day week. - - 

■ His mostfflnnunatmg comment 
on bis rale as an ambassador is 
Hint wbfle he was in Paris nobody 
in. London suggested he should do 
an ySiing in particular. So he made 
up the job as he went along. He 
was a great success with peop le 
and one should not underestimate 
the ambassador's role as host, espe- 
cially in Paris and Washington. But 
a final chapter on what tt was all 
about - and bow to do better in 
future might help. 



One of the stmerfa Buah a Bons from Poey Shnmond a tatert book 


Children's books/Anthony Browne 

Balancing act 


A good children's 
picture book is not 
an illustrated story, 
and it is not, as 
some adults think, just a hand- 
ful of sentiences with a few daz- 
zling pictures. Sendak 
describes the perfect picture 
book as a visual poem and 
some are just that, while oth- 
ers are nearer to the art of film 
making - The very best author- 
illustrators instinctively under- 
stand the subtle balance 
between words and pictures. 

John Birmingham is one 
such author-illustrator and 
Courtney (Cape £8.99, 32 pages) 
Is a truly interactive book - 
one that interacts with the 
child’s imagination. Courtney 
is a simple story about a mon- 
grel who plays the violin, 
cooks wonderful dinners and 
juggles to entertain the baby. 
It sometimes seems that Bur- 
ningham is seeing just how far 
he can go in artlessness - his 
scratchy penlines, childlike 
crayoning and sketchy pencil 
marks could easily appear 
crass, but it all works magnifi- 
cently. His choice of words 
demonstrates that, as well as 
an illustrator, he is (me of the 
best writers in the business. 
Truly a visual poem. 

P osy Slmmonds has 
produced another 
superb picture book 
with Bonn ring Buffalo 
(Cape £899, 24 pages). This tale 
of how two children save their 
parents' ailing antique shop 
from the horrible Mr. Fowler is 
told in a mixture of comic-strip 
and more conventional picture 
book style. The story has an 
Baling comedy feel and is told 
cinematically, with the rhyth- 
mical balance of long shots and 
dose ups, light and dark, and a 
s hinning use of contrasting 
emotional colours. The comic- 
strip form for children’s books 
can be tiresome, but Posy Stm- 
monds understands just how to 
carry the flow of the story with 
the text the speech bubbles, 
and the Illustrations all work- 
ing together. Most importantly, 
she leaves the vital gap 
between pictures and words - 
the gap that is filled by the 
child 's imaginati on. 

Captain Abdul’s Pirate 
School by Colin McNaughion 
(Walker Books £999, 32 pages). 


is a hilari ous yarn from the 
diary of Maisy Pickles, whose 
stinking dad sends her to 
stinking Pirate School to 
toughen her up. The Interest 
hoe lies not in the plot (pupils 
mutiny and sail for the West 
todies), but in the Street 
h umo ur and incidental details. 
I was particularly pleased to 
meet Beryl Flynn sailing on 
The Golden Behind, and to find 
out from the pirate teachers 
that six plus three equals 
about eight. Colin McNaugh- 
ton’s bold line and wash style 
is perfect for the light story, 
and deceptively well drawn. 

Ted Dewan, who retells and 
illustrates Three Billy Goats 
Gruff (Scholastic £8.99, 32 
pages), is better known for his 
non-fiction but makes the diffi- 
cult leap from one genre to the 
other with ease. The book’s 
subtitle is “Three Strikes Year 
Out” and Dewan links the 
story tenuously with baseball 
The artwork has echoes of 
American comics rather than 
tiie Beano style that influences 
so many British illustrators, 
and the tale comes across with 
a real freshness due to the dra- 
matic illustrations, the brash 
hand-written lettering, and a 
funny lively text 

A Letter to Granny (The 
Bocfley Head £899, 24 pages), 
written by Paul Rogers, is the 
story of a girl's everyday world 
transformed by her imagina- 
tion. Lucy dreams of tomorrow 
when Granny will come, and 
that her house is surrounded 
by sea. Inevitably, her parents 
do not notice. This rather 
familiar tale is transformed, 
like Lucy's world, by John 
Prato’s stunning artwork. He 
uses soft pencil and bold, bril- 
liant watercolour washes to 
reflect the watery feel of the 
story perfectly. 

One of the strengths of 
Walker Books is the design and 
My Cat Jack by Patricia Casey 
(Walker Books, £799, 24 pages) 
is no exception. This beautiful 
book is simply a celebration of 
the animal yawning, stretch- 
ing, scratching, purring and 
washing, with some of the best 
drawings of a cat 1 have ever 
seen. 

■ Anthony Broume’s next book. 
King Kong, wiU be published by 
Julia MacRae Books in October. 



Poet emerges from 
a Celtic twilight 


I f Yeats is anyone to go 
by, great poets are not 
always great spellers: 
Dear Lady Gregory. A 
groat many thanks for the 
wine & the other thing s — all 
thing s i am very glad of. l am 
eating one of the biskets, now 
while I wri ting, Mfjn g it 
with my coffey. 1 said you a 
new press cutting which 
belongs I suppose to the thea- 
tre book. I cannot find the slip 
of paper on which I wrote 
Sharps reference for Deirdre 

ChilHrmn go 1 have naked him 

to give me the reference 
again.” 

That was to December 1901 
when Yeats, a bachelor aged 
36, lived in London where he 
was a tireless worker on behalf 
of the Irish literary Theatre 
(which became the Abbey 
Theatre), having earlier pub- 
lished Us book an The Celtic 
TuriHgkL Here he Is suggesting 
to Lady Gregory that In her 
compilation of Irish folk leg- 
ends s be recounts what hap- 
pened to Deirdre’s children 
after their mother's <faath. 

Deirdre - tom between two 
ferocious men - became to. the 
writings of Lady Gregory, 
Yeats, Synge and Russell an 
emblem of Ireland’s destiny. 
Deirdre was also re-worked by 
William Sharp, a Scot who had 
jumped onto the C el ti c TunBght 
bandwaggon as the female poet 
“Fiona Madeod”. to this guise 
he sent Yeats a copy of From 
the mils of Dream. Yeats,- folly 
aware of the author’s real iden- 
tity, replied: “My dear Miss 
Madeod, I have been a long 
while about thanking you for 
your book of poems, but have 
been shifting from Dublin to 
London and very busy about 
various things - too busy for 
any quiet reading.'’ 

Sharp Is but one of dozens of 
now forgotten figures who 
crowd in on Yeats's early 
letters. Yeats wrote to anyone 
whom he thrmg ht might far- 


ther th*» of Triqh ReualS- 

sance. especially ueotde uromi- 
nent in the theatre - actor- 
managers tike Frank Benson 
and Mrs Patrick Campbell, 
who toyed with the idea of per- 
forming the Countess Catbleen 
but nothing ramp of jt, 

Maybe she was put off by 
Yeats's insistence at this 
period that his poetry should 
be enhanced by chanting and 
accompanied by the twanging 
of a psaltery. Letters to Arnold 
Dolmetsch, the early music 
expert, contain arrangements 
for tuition in fins instrument. 
Yeats also undergoes instruc- 
tion as a member of the Golden 
Dawn, an occult society, whose 

THE COLLECTED 
LETTERS OF WJ. 

YEATS: VOL.IH 
1901-1904 

edited by John Kelly 
and Ronald Scochard 

Oxford £35, 760 pages 

members had to submit to 
strenuous examination and 
were graded according to their 
mystical attainments 
Other correspondents who 
have stood the test of time bet- 
ter are Bernard Shaw, whom 
the Irish theatre originally 
reje c ted but than tried to rope 
in with a performance of The 
Devil's Disciple, and the Fay 
brothers, who took over the 
administration of the theatre 
when it became established. 
There were constant squabbles 
over policy- Letters to the 
young Joyce show Yeats offer- 
ing advice and practical help 
when Joyce came to London, 
although Joyce had poured 
scorn on the theatre when he 
was still in Dublin. George 
Moore also appears as an early 
supporter and then a dissenter. 

Not all of Yeats’s heroines at 
this time came out of Celtic 
mythology. There was the flesh 
and blood Maud Gonne who 


fiercely espoused the cause of 
I rish indep endence th ough *ha 
was not by origin Irish, being 
Hip daug h ter of a London-born 
ca ptain in the British ar my . 
Yeats bad met her to 1899 and 
fell under the spell of this 
s t ro ng, beautiful woman who 
was a confirmed mffifemt; “the 
troubling of my life began”, he 
Said df her imp art on him, to 
this volume she goes on stage 
and acts the role Of Cathleen rd 
Houlihan in Yeats's play of 
that tiMitf In 1902; and fa the 
following year she marries 
Major John MacBxide, who had 
led the Irish brigade in South 
Africa on the side of the Boers. 

By then had already had 
two child run by a French lover. 
Yeats was ignorant of than, 
but was devastated by her mar- 
riage. “I feal [sic] somehow” 
Yeats writes to Lady Gregory 
in 1903 “that the Maud Gonne I 
have known so long has passed 
away.” It was true; but after 
her legal se p ar ation from her 
husband in 1905, Yeats 
resumed relations with her. 
There is good reason to believe 
they did later beoo mp lovers. 
By the end they were at odds 
again when Yeats became a 
Senator and she became a 
member of tiie IRA. In 1922 her 
house fa Dublin was raided by 
the Mack »nfl Tans. All her 
papas were destroyed includ- 
ing ha letters from Yeats. 

Those letters . are missing 
links fa this otherwise wtmder- 
fuQy com plete e dition. The vol- 
ume traces Yeats’s wner gn m** 
from the melancholy Celtic 
mist to his belief in the power 
of will, leading to those atti- 
tudes to literature and modem 
Irish history that were to 
JBower so splendidly in his 
lata poems. The editors have 
fulfilled the task of providing a 
footnote for every recipient 
and obscure reference superbly 
which raiders the volume slow 
reading, but it should delig ht 
all Yeats admirers. 



Deflgny public swknmhg pool, 1965b from *A Propos de Part** (nomas A Hudson £36, 167 pages) a selection of 
130 prints by the old m a st e r of Ranch pho to gra p hy, Henri CartJer-Bresaon. An u MbWon of the prints b being 
held at Zwe mm ar Rne Pho towap hs, Danm ar k Sbeeb London WC2, from nest Tu esda y, May 31, unM July 2. 


I t is good to be reminded 
of the joy. the ftm, the 
satisfaction of a good 
novel which sweeps you 
along, engrosses, persuades 
you to ignore The Nine O’clock 
News and forget about walking 
the dog. EX Doctorow is an old 
master of this art - re me mber 
Ragtime, The Book of Daniel, 
BiBy Bathgate and the rest? - 
and now, with The Water- 
works, he repeats the trick. 

The scene is New York in 
1871, when the city was con- 
trolled by the notorious Boss 
Tweed. The narrator, crusty 
City Editor of the Telegram, 
worries about the disappear- 
ance of one of his young 
reporters, Martin Pemberton; 
he discovers that Pemberton 
has seen his dead father, 
Augustus, deala in slaves and 
shoddy war supplies, who had 
mysteriously died without his 
criminal fortune. 

Martin, followed by his edi- 
tor and by the only unconupt 
captain fa New York’s Munici- 
pal Police, sets off in pursuit of 


Fiction/J.D.F. Jones 


Rich strains of the Gothic 


the conspiracy and comes upon 
a surgeon of evil genius. Dr 
Sartorius, and the orphanage 
where the wretched street 
urchins of the city are used fa 
order to provide a promise of 
eternal life for rich old men 
who are reluctant to die. 

This is not a ghost story, as 
at first seems possible ("ghosts 
don't come fa crowds"), but it 
certainly has a rich strain of 
the Gothic. It is a vivid tale, 
told with a pace and a relish to 
suspend our disbelief most 
willingly. Doctorow’s central 
character is not so much Dr 
Sartorius as the New York of 
those post-bellum years (“the 
soul of the city was always my 
subject . . .”), and it is for this, 
not the plot, that this novel 
wifi be remembered. My only 


THE WATERWORKS 

by E L Doctorow 

MaaniOm £14.99, 246 pages 

THE ALIENIST 

by Caleb Carr 

Little. Brown £16.99, 534 pages 

NO NIGHT IS TOO 
LONG 

by Barbara Vine 

VJking £15. 326 pages . 

objection is to Doctorow's 
excessive use of a caesura of 
triple-dots, which stud every 
paragraph fa a stylistic device 
which becomes irritating 
ratter than illuminative of a 
particular narrative rhythm . . . 


By an odd coincidence, Caleb 
Carr’s first novel. The Alienist, 
shares many of Doctorow's 
subjects. A clumsy mix of psy- 
chological drama and histori- 
cal thiller, it recreates early 
New York (1896 this time) in 
extreme detail, with a journal- 
ist-narrator, a corrupt police 
force, and abused children. 
Even the Croton Reservoir 
water supply features again. 

Theodore Roosevelt is Police 
Commissioner at the flnw Dr 
Kreisler is an "alienist’’, as the 
early psychiatrists apparently 
were called. With the aid of 
New York’s first woman cop 
and the narrator from the 
Times, they pursue a serial 
killer who is hideously mutilat- 
ing the children. 

Unfortunately Carr, like 


many first-time novelists, feels 
obliged to throw in eve r yth ing 
be knows or has researched. 
The Alienist, absurdly over- 
long and written fa a style 
which has too little distinction, 
serves mainly to prove how 
much be could learn from Doc- 
torow. 

T he point of Ruth Ren- 
dell taking the alter 
ego pen name of Bar- 
bara Vine, as I under- 
stood it, was that she would 
thereby cease to be confined by 
the lfarifet of the “crime novel”. 

Her latest,. No Night Is Too 
Long, is a study - an unravell- 
ing -- of a bisexual love story 
with a heavy twist in the plot 
Handsome young Tim Cornish, 
frail in his sexuality,, falls fa 


love with palaeontologist Ivo 
Steadman. Ivo only slowly 
returns the emotion, but narra- 
tor Tim thereupon reverses - 
"he loved me, thereforel loved 
- him up longer”. And then, fa 
Alaska, Tim meets Isabel and, 
yes. falls in love with her. But 
wait - who is Isabel? 

That takes us to the halfway 
mark and Ms Vine tom a long 
way to go. Either you like this 
sort of thing or you don’t Ha 
prose, as always, is cool, ele- 
gant, entirely under control, a 
touch fiat The sex, both gay 
and straight, wifi offend only 
the older great aunts. Suffolk 
is well done and Alaska has 
been researched. 

To me, it goes on too long, 
rather like the previous 
bestseller, Asia's Book (just 
reissued by Penguin). 1 could 
not help feeling that this was a 
spinning ctf words, cleverly and 
pro f e ssion ally done, but essen- 
tially unreal, diverting us for a 
few hours but saying nothing 
to address our own unfictitious 
lives. Many novels do. 


L ooked at from this 
distance Italy's Risor- 
gimento - Its struggle 
for liberty and nation- 
hood in the 19th century - has 
epic proportions, it has hones 
too: the consummate states- 
man Count Camillo Cavour, 
the swashbuckling warrior 
Giuseppe Garibaldi; and tiie 
exiled theorist of revolution, 
Giuseppe Mazzini. Denis Marie 
Smith has already written 
biographies of the two Soma. 
In this account of the fife and 
work of Mazzini he completes a 
triad of studies of modern 
Italy’s founding fathers. 

This is not, however, so 
much a biography as an apolo- 
gia for Mazami. Made Smith’s 
aim Is to improve Mazzini ’s 
reputation. For Mazzini both 
preached and practised armed 
revolution, to which some of 
his followas added assassina- 
tion, yet in all Ms endeavours, 
tnrinrting his ultimate aim of 
an Ttniian republic, he failed. 
Cavour and Garibaldi woe for 
more consequential actors in 


Failed hero of the Risorgimento 


Italy’s drama. As the tumult of 
the Risorgimento recedes, their 
stature has grown while Maz- 
zini 's has diminished 

Mack Smith attempts to 
adjust this balance by giving 
us a laudatory account of Maz- 
zini as man and politician. He 
shows how Manaui’s writings 
inspired patriots wi thin Italy 
and their sympathisers else- 
where in Europe, and how this 
contributed to the liberation 
movement’s eventual success. 
He describes how Mazztoi’s 
personal example of austere 
dedication cmrmnaTidpd admira- 
tion, especially during his tong 
years of exile to London. 

Maaadni was bom in Genoa 
in 1805. While studying law he 
joined the Carbonari, a secret 
society d edicated to overthrow- 
ing Austrian domination in 
northern Italy. He was 
betrayed, imprisoned, and 
exiled Disliking the Carbonar- 


i's practice of rituals and initia- 
tions, he joined otter exiles to 
founding the Young Italy 
movement, and matte himself 
instantly fammm by sending an 
open letter to King Charles 
Albert of Piedmont calling for 
the liberation and unification 
of all Italy. The King promptly 

MAZZINI 

by Denis Mack Smith 

YUP £19.95, 302 pages 

threatened to imprison him if 
he ever returned. 

Young Italy activists unsuc- 
cessfully ventured a number of 
armed uprisin gs fa the follow- 
ing years. Mazzini had to vary 
his place of exile from France 
to Switzerland and then Lon- 
don. He was repudiated by 
Cavour because of his commit- 
ment to revolution and his 
unwilling association with 


such events as Felice Orskd’s 
assassination attempt upon 
Napoleon m, in which a bomb 
missed the Emperor but killed 

eight bystanders instead. 

For a brief moment in 1849 
Mazzini tasted power. The 
Pope fled Rome, and for some 
months the eternal city was 
ruled by a triumvirate with 
Mazzini at its head. But French 
troops restored the Pope and 
Mazzini had a gain to flee. It 
was not quite his only appear- 
ance on the legitimate political 
scene: in his absence Messina 
voters twice elected him Parlia- 
mentary deputy, but the vote 
was each time disallowed. 

When Cavour and GarihaiHi 
at length liberated mid unified 
Italy Mazzini was a mere spec- 
tator. His labours had helped 
to fertilise the fruits they 
reaped, but there was still no 
place for him fa the new Italy. 
He swallowed his republican 


sentiments and accepted the 
monarchy of Victor Emmanuel 
H. returned secretly to his 
native country to die in 1872. 

Mack Smith is right to 
that Mazzlni's writings and 
personality are his chief leg- 
acy. People as various as John 
Stuart Mill, Thomas Carlyle 
and Friedrich Nletsche greatly 
admired him, and the foreign 
dynasties which ruled in 
divided Italy feared his influ- 
ence. Hte book The Duties of 
Man confirms all testimonies 
to the potency of his mind and 
bearing. 

But Mack Smith’s portrait is 
too much a eulogy. It lacks dis- 
cussion of the shadows and 
doubts that put a human being 
into three dimensions. One 
cannot admire as 

Mack Smith would have us do, 
on the basis of mere sketches 
of his character given to the 
one-liners of contemporaries. 


The strength of this book lies 
elsewhere, in its telling of the 
complicated story of the Risor- 
gimento and its diaspora of 
exile. Mazztoi’s centr al part fa 
that story, his outer life, -Is 
here to full; but the passionate 
and lonely exile himself seems 
strangely absent. 

A.C Grayling 



Monthly Icrrer, exclusive 
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OSOf, PO Bax *. Nimivu 4MU, UK. 

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P 


K 






ARTS 


ri- 


Off the wall/ Antony Thorncroft 

Orchestras 
strung out 


T hese are migpraMo 
times for members 
of London's foot 
great orchestras. 
Audiences still 
seem to be in modified free fall; 
the Arts Council is still looking 
at ways to cut their dwindling 
subsidies; freelance work is 
hard to find 

The LPO has turned to the 
Mu sici a n’ s Union for a Iran 
and the Philhanoania towards 
its rich French patron, Vincent 
Meyer. The EPO has cut the 
salary of its chief executive 
Paul Findlay and the perfor- 
mance fees of its musicians by 
10 per cent Back desk musi- 
cians with fifteen years experi- 
ence now find themselves 
looking at incomes of just 
£17,000 a year. Only the LSO, 
bolstered by its double subsidy, 
from the Arts Council «wH the 
City of London, can be confi- 
dent about the future. 

The RPO, which saw its Arts 
Council grant cut by 25 per 
cent for 1994-95, has embarked 
an a delicate strategy of trying 
to raise Us critical profile while 
appealing to a wider market 
It has signed a deal with 
Tring Records which guaran- 
tees 177 recording sessions 
ova- the next 15 months. In 
addition to the recording fees, 
royalties from the 125 CDs to 
be released, priced at £349 and 
sold everywhere from Little 
Chef restaurants to garage 

London is where 
reputations are 
made and it is an 
expensive process 

forecourts, could bring the 
RPO an extra £500,000 a year. 
Sales by the and of May for the 
first ten releases totalled 
UXMXH, ahead of target 
The RPO Is also benefittlng 
from a deal with Classic FM, 
which is worth £500,000 a year, 
mainly in kind such as 250 
advertising slots for the 
orchestra and its sponsors, 
plus foes for jingles and same 
sponsorship- A recatt Festival 
HaS cancert-sawhao3ringnrise ... 
from 25 per cent to 60 per cent 
in 24 hours, thanks to radio 
jBtXmOUQIL 

The RPO Is now happier 
with its role as a sometime 
regional orchestra based in 
Nottingham, and hopes that 
extra Arts Council money will 
enaMe it to play rare concerts 
there. At Nottingham it can 
experiment by afaRmifmhfig thp 
fussy orchestral attire of white 
tie and tails and by introduo- . 
tag to the concert hall a giant 
screen, so that listeners at the 
back can be brought into the 
heart of the performance. But 
London Is where reputations 
are made and where the 
orchestra must premiere its 
best programmes. It is an 
expensive process; £200,000 of 
the UFO’s Arts Council grant 
of £300,000 fur showcase Lon- 
don promotions goes straight 
in rental to the Festival Hafl. A 
recent concert there was 
enjoyed by a packed audience 
but actually lost the orchestra 
£ 1 * 000 . 

* 

Mrs Janet Holmes ft Court was 

In London fois week cfaprfrrng 
up on her chain of London 


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LONDON 



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theatres. One, the Royalty, wfll 
be sold in the next few mimi-hg 
probably to neighbouring L$K 

She confirmed that in Octo- 
ber the Globe in Shaftesbury 
Avenue will become the Giel- 
gud, in honour of the 90th 
birthday of the nation’s great- 
est living actor. The name 
change will coincide with a 
new production, by Peter HaU , 
of Samlet, a play Sir John 
knows well, it providentially 
contains a part that is well 
within the range of a nonage- 
narian actor, the Ghost of 
Hamlet's Father. It would be a 
wonderful start to *W thea- 
tre if h e could be beard, if not 
seen, every night during the 
run. 

One attraction for Stall-Moss 
in re-naming the Globe is that 
London will soon have another 
theatre of that na^ a - the 
Globe at BanTr<ridt» Sam Wanfl - 
maker’s, now posthumous, 
dream of a recreated Jacobean 
theatre on virtually the same 
site as Shakespeare’s Globe. 

Mrs Holmes A Court seems 
prepared to bless the “old 1 
Globe with practical help and. 
perhaps some of the cash stiQ 
needed to complete the project 
£8m has been raised and 
another flm is required. The 
planned opening date is April, 
1985. It could slip two months, 
but the Globe will certainly 
open. 

* 

The competition between 
Sotheby’s and Christie's to 
secure masterpieces for sale 
has never been more 
cut-throat Both auction 
houses desperately need mil- 
lion dollar lots to lift their con- 
valescent balance sheets. So 
when four important collec- 
tions of impressionist and mod- 
em paintings «nne into view 
in New York, the struggle to 
secure them sorely tested the 
judgment of both salerooms. 


C 


bristle’s blandish- 
ments were the more 
effective and it 
scooped three of the 
four. Sotheby’s had to make do 
with file collection of fanner 
CIA deputy director Gates 
Lloyd, which sold very nicely 
-.-earlier this .manfiL Christie’s 
disposed of Zurich industrialist 
Jacques Koerfer’s collection 
equally satisfactorily, but the 
paintings of financially strait- 
ened re tail magnate Mershu- 
lam Rfidis bombed spectacu- 
larly. 

The real setback for Chris- 
tie's came freon four paintings 
of the late Nefi McConnell. 
Works by Manet, Gauguin and 
Sisley sold, but poorly, brfng- 
. tag in a disappointing $6.7m 
Unfortunately a Cdzanne still 
life -attracted bids of only 
32.6m, well below the $4m-$5m 
estimate, and was bought in. 
This could be shrugged off but 
for fact that Christie’s had 
given the McConnell estate a 
nan-refundable advance, proba- 
bly in the region erf gum, to 
secure the pictures. 

This is a guarantee in all but 
name. When the art market 
was boiling over in the 1980s 
Sotheby’s and Christie’s tried 
several lores like loans to pro- 
spective buyers and guarantees 

for sellers. When Alan Brad 
could not pay back the money 
he borrowed from Sotheby's to 
enab le him to acquire Van 
Gogh’s “Irises”, loans foil oat 
off favour. 

The business of guaranteeing 
sellers a certain sum for their 
works of art before they 
reached the podium also 
acquired a dubious rep u t a tion. 
As well as being potentially 
disastrous for an auction house 
if the market suddenly col- 
lapsed, it was reckoned to be 
unfair on bidders, who, per- 
haps naively, expect auction- 
eers to be impartial between 
buyer and seller. 

A co mp r om ise was readied: 
any lot that carried a guaran- 
tee would be marked in the 
catalogue. To avoid showing 
thofrr ham* in this way both 
Sotheby's and Christie’s have 
invented the “non-returnable 
advance”, rash up front for 
important owners in return for 
disposing of their cofiections. 

It has turned out to be 
equally risky, given the cur- 
rent nervousness of buyers. 
Christie’s now has in its vaults 
a fifcanne stQl life which it 
must sell, presumably pri- 
vately, for at least $4m if it is 
to break even on the McCon- 
nell deal. It is just the kind of 
extra headache It does not 
need in the current fragile 
market 

★ 

Madonna's career may be wan- 
ing but she is quickly becamr 
tag an object off saleroom nos- 
talgia. One of her conical 
bodices, designed by Gaultier 
and discarded after a Barce- 
lona concert in 1990, sold far 
fieiflfl at Christie’s South Ken- 
sington on Thursday, a record 
for any Madonna garment at 
auction. The last time a snnfiar 
contraption aPP«*«* “ 
saleroom it made £9.000. 



P 


A theatrical windfall 

Antony Thorncroft reports on the drama of a legacy 


Poggy Ramsay: bar fortuno has created an annual price 


eggy Ramsay was the 
leading theatrical 
agent of ho* genera- 
tion. Most major play- 
wrights of the pas t 30 y ears - 
Ayckbourn. Hare, Willie Rus- 
sell, Brenton, Orton - were 
her dients. Like many people 
who pretend to despise money 
she left a fortune, well over 
glw, when she dfad in 1991 , 
And since the theatre was her 
life, she has ensured that her 
legacy Is being poured back 
posthumously into drama. 

“Celestial re-distribution" 
was how David Hare described 
it Be is one of the trustees of 
the Peggy Ramsay Foundation 
and on Monday will announce 
the winner of the biggest 
amnm i psjze in British thea- 
tre, £50,000, to help give a 
decent production to a promis- 
ing new play. 


Thanks to a deal with Sant 
say’s successor company, Cas- 
sarotto-Ramsay, the founda- 
tion wiD also receive half the 
royalties from the plays that 
Ramsay helped to create, 
which will be available as 

hand outs to indigent writers, 
but the bulk of her money will 
go towards the Peggy Ramsay 
Play Award- 

Six theatres, from London 
fringe to the National Theatre, 
from provincial studio to the 
Royal Manchester, 

will be asked to apply each 
year for the money by submit- 
ting the script of a new play 
they are planning to produce. 
The most exciting project will 
get the £50,000. It could be 
written by Ayc kb ourn or Hare, 
though that is unlikely. The 
aim is to encourage play- 
wrights where it matters: in 


the quality of the production. 
The following year six differ- 
ent theatres will be asked to 
trader and so it goes on. 

Introducing the prise, David 
Hare was droll about Ramsay; 
about the chaos of her office, 
about her even handed tough- 
ness towards her writers. The 

reputation of the playwright 
did not weigh with her at ail; 
the play was everything. Hare 
said that finishing a play had 
a special excitement then that 
can never be recaptured: the 
knowledge that Peggy would 
now see It. Her impartial judg- 
ment was unquestionable. 

Hare told of Peggy Ramsay’s 
reaction when, for the first 
time, one of his plays was to 
be presented In New York. She 
reckoned this to be the high- 
light of any writer’s career 
aiw) {nefcf pd that he should go 


ova* to see it and enjoy the 
experience. She hunted around 
her desk for some money, and 
came up with a wallet which, 
on later examination, con- 
tained 32,000, enough, she 
said, to buy a girl as partner 
for the first night party. “If I'd 
taken her advice I might have 
written Pretty I Vman\ sold 
Hare, ruefafly. 

The unusual thing about 
this new prize Is that the 
trustees seem anxious that the 
winners should have some fun. 
If a fringe theatre (where new 
productions rarely cost more 
than £20,000) wins, then It can 
spend the rest of the money an 
other ventures. There are few 
restraints; few provisos. This 
is spare cash, a windfall from 
the dead, that will help to 
fructify the theatre of the 
foture. 


Danish opera 
tunes up for 
the future 

Richard Fairman reports from the the 
Kongelige Teater, Copenhagen 

I 


f one crap fails, the enterpris- 
ing fanner tries another. Faced 
with irriRr quota problems Dan- 
ish fanner Vtacens Steensen- 
Leth sold bis cattle «t>h ap pifod 
for European Community funds to 
help him convert to a new growth 
product he wants to plant a new 
opera company at Us farm cm the 
inland Of Tangtthmri- If he is success- 
fill, Denmark could soon have its own 
Gyndeboume- 

This is just one example off a new 
international outlook to opera in the 
country. In Copenhagen the venerable 
Komgehge Teater (Royal Theatre; its 
archives go back as far as 1756) has 
given most of its operatic perfor- 
mances since the war in Danish, tak- 
ing its casts from a resident engwuhiB. 
But since the ar r i val of a new chair - 
man and- hi* app ointee - as artistic 
director, Klara* Padmore from Wex- 
ford, that has started to change. 

The opera bousehad already under- 
gone substantial modernisation in 
1985 and Padmore’s task is to effect a 
comparable re-buDdtag of the com- 
pany - even if that means a difficult 
wrench with the past. Some of what 
tile iwtpndg to do is obvious. The stan- 
dard repertory has been allowed to 
ossify and should be brought 
up-to-date, and the finance found to 
fa) so. At the moment the company 
receives most of its income from the 
state; if it is to move beyond the cos- 
tomary four new productions a year, 
sponsorship will have to rise. 

The repertoire most also be more 
varied. Formerly, if there was no 
soprano who could sing Donizetti's 
Lucia, the opera simply did not get 
done. Padmore wants to give her loyal 
audiences operas they have never 
seen and has sch ed ule d the Kongelige 
Teeter's first ever productions of Puc- 
cini’s Turandot and Mozart’s Ido- 
menea These wfll be sung in the origi- 
nal languages, a policy that has 
slowly become standard over the last 
15 years. That suits fire increasing 
band <rf young Vikings, such as Randi 
Stone and Inger Dam-Jensen, who 
ting opera on the world's stages. 


Among the last of the Danish-lan- 
guage productions is the new Cbri fan 
tir ffo ori ginally intended fra fi> Han- 
sen, a favourite Danish singer who 
sadly fell fl] before he could appear in 
it. This has been produced and 
designed fay Mikael Melbye, a com- 
pany member from his days as a tre- 
ble to his career as hi te pmtinnai bari- 
tone. As designer, he has given Cost a 
clean and stylish Scandinavian feeL 
As producer, he keeps strictly to the 
text, no updatings, no concepts. 

By mid-run the performances were 
being conducted by Andrew Green- 
wood in a swift and taut fashion (the 
company’s orchestra is a good one 
and unusually prominent, as the pit 
extends right out into the audito- 
rium). Among the singers, Randi 
Stone's Dorabella inevitably caught 
the interest, althoug h all four of the 
lovers were decently taken. A good, 
ensemble performance without stri- 
king insights or personalities. 


A 


FMeBo in repratary at the 
time showed the com- 
pany’s t ptemartnnal KnVg 
Sung in German, the two 
lead roles featured Danish singers 
who have notable careers overseas: 
Tina Kiberg, a rather feminine Leo- 
nora; and Poul Elm tag, a Ftoresfcan 
strained fay the higher parts of the 
role, though one looks forward to 
hearing him in the heroic Wagner 
roles he has conquered at Bayreuth. 
The secondary roles were strongly 
taken and the orchestra e prfn played 
to a high s tandar d mirier the baton of 
Paavo Berglunri- 

Unfortunately, the production by 
Bruno Schwengl (producer) and 
Dieter KaegL (designs*) had self-con- 
sciously arty ideas. Fide to is an opera 
that asks for eye-to-eye honesty and it 
does not help to have the prisoners 
farming a Last Supper scene, in 
which a chosen 12 gather at a long 
table so that Leraore can feed them 
bread and wine (why were the rest 
not invited?). But that is perhaps a 
risk worth taking, if the company is 
to open its doors to outside producers. 



Ora of the last productions In the Danish language: a new Cod with a dam Scandinavian fed 


For the future there are ambitious 
plans. The Kongelige Teater may well 
appear from time to time at the proj- 
ected summer festival on Tangeland. 
An endowment has been set up to 
cover the cost of the annual seasons 
there (Mark Wigglesworth and the 
Scottish Chamber Orchestra have 
been invited to be rousidans-ta-resl- 
dence) and it looks possible that the 


European Union may find half the 
£14m cost of building works. V con- 
struction goes ahead, the first perfor- 
mances should be in 1997. 

As for the company’s home plans, 
Padmore is working towards 1996, 
when Copenhagen will be Cultural 
Capital of Europe. The programme is 
expected to showcase Danish achieve- 
ments on an international scale. Stag- 


ers like Boje Skovhus and Lisbeth 
Balslev will return home. Both Niel- 
sen’s operas wifi be performed and 
Padmore is keen to put on what Dan- 
ish stagers do best, namely Wagner, 
so there will be a new production of 
Die Meistersinger. This is, after all, 
the land of Lauritz Melchior. Den- 
mark seems to grow Wagnerians. It 
must be something in the soft 


F 


or a decade and more 
Gavin Henderson has 
guided the Brighton 
Festival with a wise 
and generous band In this, his 
last, there is a nod towards the 
* Tnternatkmal year of the Fam- 
ily" with its “Kindred Spirits" 
theme “to accentuate the ten- 
sions of family conflict as 
much as the power trf love". 

The most notable musical 
event was the Borneo and Jul- 
iet dramatic symphony of Ber- 
lioz given in its still rarely 
heard complete farm in a per- 
formance of high quality from 
the Festival and Academy of St 
Martin-ln-the-Fields choruses 
and the visiting National 
Orchestra de Ufa, under Mark 
Elder. Shakespeare’s tragedy 
does indeed Illustrate the com- 
ing together of two bitterly 
opposed famines. The concert, 
appropriately sponsored by 
Eurotunnel, was an inmi iid« ir. 
able gesture towards recent 
events further up the Channel; 
tiie Brighton chorus trill pay a 
retina visit to Lihe. 

The platform lay-out was 

u nfam i liar . The brass wwipiwl 

the Dome’s apology for an 
inner stage and there were sev- 
eral rows of empty seats in. 
front of the strings. From the 
circle the sound was clearer 
and brighter than usual. The 
open" timbre of the French 
brass lent a splendid ring to 
Berlioz’s grand rhetorical 
phrases, file woodwind fid not 
ad much draw their as 
etch them, the strings were 
nimble and ftoefyshaded, the 
percussion made the most of 
the virtuoso writing. 

The chorus, sparingly used 


Berlioz in Brighton 

Ronald Crichton reports on the musical highlights of the festival 


in the first two parts, comes 
into its own towards the end, 
after the death of the lovers, 
and is capped by the sermon- 
ising of Friar Laurence. Some 
visual interest is deairahie; in 
the Dome the slow, proces- 
sional entry of the full chorus, 
dark-robed, provided this. For 
tfiR Friar’s gntemn address 
simply needs the best available 
bass singer. The Ameri c an 
'David Pittsinger has a fine 
voice and the right manner 
(authoritative but not porten- 
tous) without quite file power 
off French declamation at its 
grandest. The other soloists, 
- Martina Mah 6 (mezzo) and Leo- 
nard Pezzteo (tour) performed 
their lesser duties stylishly. - 
Elder’s direction showed an 
= impressive grasp of the whole 
as wan as p ene trating 
into detail. One has heard 
more passionately sensual 
accounts of the love scene bat 
few so dear, so probing. Queen 
Mah, in her first, .fleeting 
' appearance as in the famous 


scherzo, was fantastically brit- 
tle, light-footed, evanescent, 

rmretViTig , VEDQtaOUS. 

Notoriously, Brighton lacks 
an opera house and a satisfac- 
tory concert hall - the Dome 
does not deserve that descrip- 
tion. There is, however, a won- 
derful assortment of smaller 
venues, including the unique 
Music Room in the Royal Pavil- 
ion. The usual series erf recitals 
included a dfebot recital by the 
Ehnhirst Ensemble, whose aim 
is to rescue neglected works by 
British composers (rf the pres- 
ent ce ntu ry. Pride of place an 
last Monday was given to Con- 


stant Lambert's Concerto for 
piano and an instrumental 
ensemble written in the early 
1330s. 

That work's sunny indolence 
can be recognised at the open- 
ing of the Concerto's first 
movement ("Overture") but 
the mood soon darkens. The 
period of composition was 
marred for Lambert by the 
deaths of bis father and of two 
close friends, the painter Cris- 
topher wood and the composer 
"Peter Warlock”. The jazz Lam- 
brat sound is soured. The last 
movement, a loving elegy, 
almost suggests that Duke 


Ellington's Mood Indigo has 
been transformed into a 
funeral march. Ian Munro was 
the persuasive soloist He and 
his colleagues must see to it 
that the Concerto is restored to 
the repertory, where it ri ghtl y 
belongs. 

Walton's Facade in the origi- 


nal version with speakers - 
Linda Hirst and Thomas Hem- 
stay - was, I understand, the 
group's first attempt at this 
popular extravaganza, well It 
cannot, I fear, be called a total 
success. The amplification too 
often distorted the speakers 
voices (they deserved a kinder 
fate}, balance favoured the 
Instruments. The conductor, 
Stephen Dummer, will surely 
persuade the players that in 
Facade at least they are accom- 
panists, not competing soloists. 
Dynamics throughout were 
ferocious. 




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FINANCIAL TIMES WEEKEND MAY 28/MAY.29 1994 


ARTS 


12 


Creative 

stimulus 

of war 


I t Is easily forgotten that 
the Imperial War 
Museum holds the larg- 
est collection of modem 
British art outside the 
Tate. The loss of the old exhibi- 
tion galleries when the 
museum was remodelled some 
years ago meant the effective 
disappearance of that collec- 
tion as such, for while tempo- 
rary exhibitions continued to 
be mounted, its regular rota- 
tion on semi-permanent dis- 
play ceased. The presentation 
of two fresh thematic displays, 
set up in the old way in the 
new upper galleries, is there- 
fore especially welcome. 

Artists have always 
responded creatively to the 
stimulus of war, but commis- 
sioning officially fn do SO 
only became established in the 

William Packer 
visits the Imperial 
War Museum 


later years of the first world 
war. Such was the variety and 
strength of the work that the 
practice was resumed at the 
outset of the second. A display 
is here accorded to each of 

them 

With only The Slade School 
1914-1918 to go on, it was too 
easy to jump to the wrong con- 
clusion. In the ev ent, the very 
artists whom me would expect 
to celebrate under such a head, 
the radical and modernist 
young - Lewis, Bamberg, Nev- 
inson, Nash and the rest of 
them, and all from the Slade - 
are missing, consigned to 
another show that opens 
shortly at the Altes Museum in 
Berlin and comes to the Barbi- 
can in the autumn. In their 
place are those of their contem- 
poraries who represent the 
older and more conventional 
tradition of the Slade, with its 
emphasis on fine drawing and 
accurate observation. 

Slade professor Henry Tanks 
is represented by impressive 
studies of a casualty clearing 
station on the Western Front 
and of village scenes from the 
Russian campaign of 1919. As 
with others in the show, nota- 
bly Cohn G1H the larger com- 
position drawn upon such 
material is more worthy than 
exciting. The drawings, or at 
least the smaller studies, 
whether on paper or canvas, 
are the thing, taken directly 
from the subject, caught on the 
wing - land girls in smocks 
and breeches by Randolph 
Schwabe; soldier portraits by 
Augustus John and Ambrose 
McEvoy; Stanley Spencer’s 
tiny wash studies of travois 


and stretcher-bearers in Mac- 
edonia; William Orpen’s oil 
sketches of deserted trenches, 
of an inn behind the lines, of 
hims elf in tin hat “Ready to 
Start". 

The star of the show is Eric 
Kanningtan with his extraordi- 
nary large painting on glass, of 
"The Kensingtons at Laven- 
tie”, a group of soldiers in the 
snow, wounded or simply 
exhausted, just out of the line. 
The frustration is to see so fit- 
tie of the sculptor, Charles Jag- 
ger, he of the Artillery Memo- 
rial at Hyde Park Comer, the 
Soldier reading a letter at Pad- 
dington Station and many 
other remarkable memorials, 
and here shown by a single 
soldier maquette. 

Europe Regained 1943-1945 
takes the later campaigns of 
the second war, in Italy, 
France and Germany, seen 
mainly through the eyes of 
three artists, Anthony Gross, 
Edward ArtUzzone and Edward 
Bawden - though there are 
other significant contributions, 
notably Henry Carr's dose- 
toned Monte Cassino; Richard 
Eurich’s mulberry harbour in 
preparation; and Barnet Freed- 
man's large panoramic view of 
the foreshore at Arromanches, 
crowded with equipment and 
supplies, on D Day + 20. 

Gross follows the allied 
advance through Holland and 
tntn Germany, images of refu- 
gees, devastated villages and 
the wrecked Rhine bridges. 
Ardizzone, in Italy and Ger- 
many, as always takes a mare 
rnthnatn view of the military 
fife, with troops sight-seeing in 
the Sistine Chapel, sleeping on 
the floor, or looking intently 
out from an observation post 
in the CasteL S. Angelo. Eric 
Taylor’s Belsen studies are 
obviously distressing and mov- 
ing, yet the two most poignant 
images in the entire double 
show are Ardizzane's, of Ger- 
man village women waving 
white flags and, even more so. 
of one of them desperate to 
save her pig. 

Bawden’s war was in Italy, 
shown here by a group of char- 
acteristically large water-col- 
ours, of Italian partisans in 
their headquarters, of wreck- 
age near the Ponte Vecchio 
and a quite remarkable view 
from the rooftops down into 
the square at Ravenna, where 
a parade to honour a partisan 
hero is taking place. If Bawden 
had only painted as much on 
canvas as he did on paper, be 
would be seen as one of the 
major artists of his time. 

The Slade School 1914-1918; 
Europe Regained 1943-1945. 
Imperial War Museum, Lam- 
beth Road SEl, until late 1995. 



sj MSskw* 


They used to call it sheH-shock. Now it's called combat stress. It 
is atenrtfying affliction, it takes many forms, but usually it is caused 
by shock, the shock of an Exploding shell, the shock of a bomb. 

The Ex-Services Mental Welfare Society helps those men and 
women from all Services whose minds have been affected by 
repeated hostile actions. From Ireland, the Falkland?, both world 
wars and from many actions In between. 

help by providing advice. Treatment Centres and, for really bad 
cases and for those without a family, a place in our Residential Home 
where they canlive out theirdaysincaring, friendly 
comfort. We need your help most urgently. 

They tried to give more than they amid. 
Please give as much as yen can. 



__ 

r~ ^—ex-services bsejital welfare SOCIETY I 

ftfcqttnc(*Mai333 

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Radio/Martin Hoyle 




Live from Prague 


**'• 


L ast week’s expedition- 
ary force of Radio 3 
programmes for a 
Prague Weekend 
looked like another foolhardy 
chapter in the traditionally 
ambivalent Anglo-Czech his- 
tory. 

Previous weekends of live R3 
broadcasts have come from 
Berlin and Mlnneapolis-St Paul 
- the twin cities that are hone 
to AwiPrinan public broadcast- 
ing. The main presenter, John 
Tusa, explains there is no set 
formula, tot the choice of the 
Czech capital at the height of 
the Prague Spring was 
inspired. 

Any reference to the city 
must turn into a drooling trav- 
elogue. Gothic, medieval, 
baroque, shameless peacock 
Art Nouveau - the views 
ambush you down every cob- 
bled street A blind soprano in 
the Old Town busks Mozart 
arias to an orchestra an cas- 
sette. The accordionist on 
Charles Bridge plays a selec- 
tion from Figaro. Besides the 
almost excessive musical! ty 
that the historian Dr Burney 
noted two centuries ago, this is 
the city of Kafka and Schweik, 
black humour and the unex- 
pected hopefulness that results 
from fha (Wh f unambufis tic 
mastery of the narrow line 
between cheerful scepticism 
and mere cynicism. 

The balance is delicate, espe- 
cially in the current economic 
p-Hmatp in a familiar scenario 
the arts are subjected to cuts, 
but even here reaction is calm. 
It is accepted that generous 
subsidy was for too long not 
matehiiri by scrutiny. The atti- 
tude is Tt was nice while we 
had it but it couldn’t last* 
says John Tusa. 

Every inch the BBC man. 


Tusa is actually Czech-born, 
transplanted to Britain at foe 
age of three. He is sceptical 
about the claim that the city is 
the equivalent of Paris in foe 
1920s. At midnight foe medi- 
eval cobbles of Queries Bridge 
are crowded with young people 
ring i ng , playing guitars, neck- 
ing. Nepal in the 1960s might 
he a better analogy. 

The Radio 3 schedule goes 
joyously to town in all senses; 
music, literature, plays, archi- 
tecture, pah tics, late night jazz, 
even food (well, the ubiquitous 
dumpling) mean co-operation 
between different departments: 
drama, features, talks. Their 
host is Radio Vltava, a name 
originally given to a hated Bast 
German station that supported 
Communist regime. "Bach 
sentence they broadcast was 
lies," beams Boris Rotate, the 
bulky, boyish editor in chief of 
Radio 3*s Czech equivalent 
But the title is so resonant of 
national {aide, foe name of foe 
great river on which the capi- 
tal stands, immortalised by 
Smetana’s best-loved tone 
poem, that it easily shakes off 
the slur. 

V ltava’s output is 65 
per cent music, with 
three or four radio 
dramas per week, 
and 15 to 20 mhwrten of poetry 
daily (more at weekends) with 
an average of two serialised 
readings and a short story a 
day. They are impressed by the 
BBC’s features, a genre they 
decide to take up. It seems to 
be taken for granted that as a 
cultural station Vltava is eco- 
nomically safe, thmig h a tiny 
proportion of advertising is 
now taken by Czech Radio. 

On Saturday morning nearly 
20 people crowd into the con- 


trol roam to share the count- 
down with presenters John 
Tusa and Francine stock 
through foe glass panel For 
the next 40 tours, tbs visiting 
shift workers sail through 
without technical mishaps. 
The back-up tapes in London, 
intended to ping foe gap 
should the fine go down, are 
never needed. Smetana’s opera 
DaHbor comae live from the 
National Theatre where a 
group of British tourists recog- 
nise foe amiable Controller of 
Radio 3 and grumble loudly 
among themselves about 
recent , changes. Chamber con- 
certs have been recorded in 
some of the noble palaces that 
bespeak Prague's imperial 
past, arid coining up is the 
Havel-Prince Charles concert 
with Sotti and Dame Kiri on 
June 4, to be broadcast five on 
both BBC2 and Radio 3. 

At one in the "****<*>£ on 
Monday, the last programme 
starts, a five Angto-Czech dis- 
cussion which Radio Vltava 
tflh fr* whole and u ntranslated 
Merdftdly, perhaps, not many 
locals can have heard the con- 
ductor Libor Pesek meat that 
Liverpool and Prague were 
quite similar really* Half an 
hour later Radio S closes down. 
Rafiefc exhaustion triumph 
are to be expected, but there's 
something else. “We broke 
every rule in foe hook," says 
one producer, proceeding with 
a catchphrase I’ve heard 
before: “We’re business units, 
meant to compete against one 
another but we’ve brought it 
off." The reference to the new 
philosophy prompts some sar- 
donic mirth amongst the 
assembled business units. 
There’s a whiff of velvet revo- 
lution in the air. 








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A fascinating sur- 
vival, or an elabo- 
rate fake? A pro- 
found drama, or an 
extended piece of re-heated 
and corned tosh? La Bayadtre 
can be seen - and performed - 
as all and any of these. It is 
certainly a very odd ballet, its 
oddity compounded by rad- 
don, revision, misinterpreta- 
tion. As created in Petersburg 
by Petipa in 1877, it was a by 
no mptfrns untypical spectacu- 
lar, obeying all the dance-for- 
mulae evolved by Petipa him- 
self. Here were strong drama - 
temple dancer loved by faith- 
less hero; exotic locale - India 
, with a vision scene in the 
Himalayas; splendid roles for 
hHllwrnas 1 and a dawflfag bal- 
let blanc show-piece for the 
corps. 

Its history over the past cen- 
tury has been no less typical: 
edited and re-choreographed 
mercilessly in Russia; brought 
to foe West with farther edit- 
ing, by emigre stars - Maka- 
rova and Nureyev. Treasured 
in Russia as a classic, it has 
been adopted In the West on 
the same terms, Its Shades 
scene recognised as a pinnacle 
of the old academic dance. 

It is, as we now know from 
several stagings (Makarova’s 
version given in New Tork, 
London, Stockholm, Milan, 
Rio; Nureyev’s, his last gift to 


the Paris Opera; the Kirov pro- 
duction in its home theatre, 
and now taken on tour; the 
Bolshoi also with a new pre- 
sentation) a splendid, if sus- 
pect affair. To make sense, it 
must have the resources of a 
great company, rich in stare 
and no less rich in a sense of 
style, with classic brilliance 
matched by dramatic convic- 


Clement Crisp 
reviews Nwreyevs 
version of La 
Bayadere in Paris 


tion. These demands were not 
fully met when Nureyev, in Ms 
last months, mounted it at the 
Palais Gamier: the staging 
was grandiose, the perfor- 
mances were more about cos- 
tume than ilmniB- 
Returoed to the repertory 18 
months later, it now looks 
very well on the Opera’s danc- 
ers. I saw it on Thursday with 
Elisabeth Platel (the original 
Paris Gamzatti) as NSfciya, and 
with Nicholas Le Riche mak- 
ing his house debut as Solar 
(he had earlier danced the role 
with Platel in Moscow). Visu- 
ally the staging is on the Ear 
side of opulent: Ezio Frigerio’s 
sets are tremendous caprices 


on Indian themes; Franca 
Squardapino’s clothes boast a 
rajah’s ransom in gold thread 
done. The generality of foe 
danriiig a™ playing Jg admira- 
ble - not least in foe perfor- 
mances of the two stars. 

Elisabeth Plate! Is the purest 
and most aristocratic of foe 
Opera’s dtoiles. Thus the 
Shade Nilriya passes with 
divine authority through the 
white motions of foe fourth 
act, the dance luminous, the 
image poetic. But, as her 
Gamzatti (and her Giselle) 
have shown us, she is an act- 
ress in whom passion is both 
real and refined in expression. 
This NDriya’s confrontation 
with Gamzatti in foe cele- 
brated dialogue when the two 
women challenge each other 
over Soloris love, was a mar- 
vellously sustained phrase of 
feeling, well matched by Car- 
ole Alto ’s proud Gamzatti. To 
Uility Flstd brought dis~ 
tinction of means - the shape 
of her dancing exquisite in 
proportion, truly classical - 
and sincerity of feefing. 

Nicholas Le Riche is the lat- 
est marvel among the Opera’s 
men. Just 22 years old, Ms 
Hanging hag a quality of inno- 
cence, of sincere pleasure in 
prowess, of emotional direct- 
ness, which wins the public 
wholly. Huge jumps, a lus- 
cious physical! ty - something 



The dance luminous, Um bnege posfle Osabetb Mate! n a truly 


Roland Petit used wen in the 
recent Camera Obscura - mark 
his roles. The rectitude of 
Opera training also means 
that his dancing is noble. For 
Solar, the innocence And the 
power of bis handsome pres- 
ence are well found. The role 
is understood, the playing Is 
honest. The character will 
never be modi more than a 
variation on Giselle's 
Albrecht; Le Riche gives it a 
youthful credibility, and his 
dancing takes the breath away 
by Its grand scale. 

Of foe other performances, I 
found Carole Arbo more con- 


vincing - because more expan- 
sive — in foe dramatic scenes 
than in the fireworks of foe 
second act, and I deplore foe 
way the staging still shows the 
Chief Brahman (who must be a 
dominating figure) as a Gross 
between the last Manchu 
Empress and Julian Clary. In 


everything else, the company 
looked at its best 
The production, tt is good to 
report, has lately 1 been 
recorded for television, with 
NureyevV first cast: EUzabefo 
Guerin as Nfitiya, Platel as 
Ga mzatti , Laurent Hilaire as 
Solor. 




An Irishwoman in crisis 


A fter Easter, now In 
its premiere perfor- 
mances with the 
RSC at Stratford’s 
Other Place, is about Northern 
Ireland, religion, family, 
mourning and a disturbed 
female psyche. Written by 
Anne Devlin, it is an interest- 
ing, entertaining, serious, 
ambitious mess. In particular, 
it is about Greta, a former 
Catholic from Northern 
Ireland. Married, with children, 
to an Oxford academic, she has 
entered a crisis that is not 
merely marital but also psy- 
chological, spiritual, religious. 
“He thought he was marrying 
a radical emancipated 
woman," she remarks. “Instead 
he gets a Catholic mystic." 

The play overdoses on willy 
comic remarks, and some of its 
characters are all too inclined 
to Irish cuteness. Why, since it 
begins and ends with Greta's 
spiritual quest, does Devlin 
drag in so much gratuitous 
material? In several scenes she 
allows Greta to become a sup- 
porting character without fully 
focusing on anyone else. Both 
Catholicism and Northern 
Ireland become large and 
arresting subjects (as when 
Greta sees Pentecostal visions, 
or when three British soldiers 
threaten her brother Manus at 
gunpoint) but then slide out of 

And why on earth - towards 
the play’s dose, and when all 
the family is hiding under the 
table In case a bomb fells - 
does Devlin suddenly have 
Manns tell his mother that he 


is gay? It's not as if we ever see 
him again. This kind of extra- 
neous detail feels like sheer 
nervousness on Devlin's part 
and so does some of the com- 
edy, cracking jokes rather than 
holding to serious subjects. 

Stella Gonet, far from The 
House of Elliott, is Greta. Peo- 
ple who only know her on 
screen will not know what 

extraordinary charm she has 
in a theatre. The light in her 
eyes, the bloom on her cheeks, 
the breadth of her smile, the 
musicali ty of her utterance - 
these make an effect in live 
performance that captivates. 
She makes me want to say, like 
an American tourist, “Oh, just 
go on talking." But this very 
charm, though often invalu- 
able, is probably what holds 
her back from real distinction 
as an actress. Greta’s pain and 
trauma fell to grip. 

Devlin must take part of the 
blame for this. So must Mich- 
ael Attenborough, who directs. 
He allows Ann Hasson to play 
Greta's sister Aoife ri don’t 
have affairs, I have phone 
n umb ers") as a cute comic ste- 
reotype of Irish domesticity far 
too long. When finally she has 
to break out Into a certain dark 
aggression, we cannot believe 
the change- Katharine Rogers, 

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as their sister Helen (“I don’t 
have visions, I have sex"), 
muddles effectively through a 
complex but under- written 
role. 

The play falls apart into a 
series of Individually good 
moments. When Greta, dis- 
tracted. has sat down alone in 
the road in front of an En glish 
bus, she observes that her 
action would have been 
accepted as a gesture of pro- 
test, not of mental disturbance, 
if performed by a whole group. 
"It confirms what I’ve always 
suspected - that the difference 
between politics and insanity 


is one of numbers." Later, still 
psychologically erratic, foe dis- 
tributes communion to an Irish 
bus-queue, and the police hold 
her until persuaded she is not 
politically motivated- “In 
England they'd keep her if 
she’s mad and let her go if 
she’s political’’ remarks Helen. 
"In Ireland they keep her if 
she's political and let her go if 
she's mad.” 

Alastair Macaulay 


In repertory at the The Other 
Place, Stratford-upon-Avon. 


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_F1NA3MCIAL TIMES WEEKEND MAY 2 R/MAV 29 1994 


WEEKEND FT XXI 


l gll 


TELEVISION 


BBC1 


SATURDAY 


•V - 


Cta. 7.40 Joe 90. 210 

tOJW nnrc Tha watar BaUe*. Adapfadan 
trfthaawtesWngafc^chftSBn’s 
ta*c about a runaway cftfrmvsv 
sweep’s adventure® in a strange 
undawster world. Jama® Mason 
and Tom Penciersta- (197a. 

1* Jtt Weather. 

1a - 3 ° ^wxfattmd.Wroctacod by Store 
Wder. 1235 Footbafl Focus: A look 
ahead to the VYoftd Cup finals. 1.00 
Newsu US GolC PGA CJwnpkm- 
wlp. ^ eecood round from Went- 
worth. 1.55 Racing from Haydock 
Paric The 2X0 Harcross Unfoer and 
Buikflna Si^apfas Steyera Chompt- 
*«hlp Series Handicap. 2:05 Water- 
Skiing: The European Mastois. 225 
Racing: The 2J3Q Sandy Lane Rated 
Stakes (H’cap). 235 Watar-SkBng. 
2^5 Racing: The a DO Tot® Outfit 
SSwBowf (H'eap). 3JS Gotf. Ass 
Rna! Score. Times may vary. 

B.IO News. 

U® Regional Nna and Sport. 

BLAB PofiQuh. 

The Paul Daniels Magic Shorn. 

MB The New Adventures of Super- 
man. Ctart is honffled whan Lola 
accepts Luther's mwrtsga proposal 
- wfl he finally reveal his true iden- 
tity to stop her making a terrfcto 
mistake? 

7-30 Moreczmb® and Wise: Bring M® 
SianMne. Friends and admirers, 

indiaflng Roy Caarie, Mfchari Par- 
Wnaon and Hamah Gordon, present 
a selection of the comedy duo’s 
moat memorable sketches and 
musical routines to celebrate a king 
and brtffant partnership broufgrt to 
an end by Eric’s death 10 years ago 
today. Last fa series. 

8.10 That's UM 

SJSO News and Sport; Weather. 

8.10 FHnc Witness. City cop Harrison 
Fan! faces a dash of cultures when 
lw attempts to protect an Ambh boy 
who has witnessed a murder- but 
ha fafls for the boy's recently wid- 
owed mother. Peter Wat's thrfler, 
also starring KeBy McGOfa, Lukas 
Haas and Danny Glover ( 1 S 8 S). 

11-00 Oott PGA C ham pton al dp. 

Highlights of today's aooand round. 

11-40 nm: B Condor. Con mot Lae Van 
Cteef and ex-convict Jim Brown set 
out to steal a fortune In gold bom a 
Mexican fortress. Violent Western, 
co-starring Mariana HB (1970). 

1JM Weather. 

1-20 done. 


BBC2 


mo Open UnNorafty. 12.15 pro Hm: Dtahorared. 

1^0 Time with Betjeman. AngScan 
monk Hany WlBams discusses hta 
views on reOgioa 

AAO Scrutiny. MPa query the baffle rao- 
ing over rights to ttdavhe major 
sporting occasions. 

9.00 Him: Robbery Under Aram, two 
brothers h 1680s Austria Join their 
father's notorious outlaw gang fei 
search of adventure. Peter nnch 
and Ronald Lewis star (1958). 

4.4Q Rhe S torm Boy. Austraten fairity 
drama, stanfag Greg Rowe as a bay 
who befriends e young Abori^ne 
and a baby peflcarv With David GU- 
P® (107B). 

The Chebree Flower Show. Alan 
Tftqhmarah reports on the horticul- 
tural ovont 

CUM News and Sport; Weather. 

7.10 Prague The City Where Tima 
Stood StBL How moves toward 
urban development are threatening 
the Czech capriaTa unique areMtec- 
hste Itoritags fal the wato of com- 
munism. John Tuaa assesses a 

aarfra tf iTKXJamiastion ptara, and 
canv asses the views of concerned 
parties including president of the 
Czech repubBc ttadav Havel and 
outspoken critic of modem bullcttng 
design Prince Charles. 

M# Fine Cut ProHe of boxer MBce 

Tyson, the former worid heavyweight 
champion who went from mopinna- 
de erf success at SO to prison, tor 
rape, at 25. Double Oscar-wtonar 
Barbara Knppte's fifrn charts Tyson’s 
rise and fas, combining previously 
unseen footage of his formative 
years with comments from ex-wtfe 
Robin Givens, boxing prom ote r Don 
King, trainer Kevin Rooney, manager 
Jimmy Jacobs and former tan Don- 
ald Washington - the tattler of rape 
victim Deatroa. 

MO Have I Got Maws for You. Comedy 
news quiz. 

IOjOO SefntokL 

10 JM Later with Jools HoXond. 

1140 Washington Behind Closed Doors. 
Hank Ferris’s pubAc relations sxar- 
dee at the Lincoln Memorial goes 
horribly wrong, and Jack Atherton 
approaches Satty Whalen with a 
request tor information. 

1240 FHnc As fat. A successful 

homosexual writer contracts Aids 
and b devastated when Mends and 
associates desert Mm. Drama, with 
Robert Carredne (TVM 1986). 

240 Close. 


(LOO GMTV. MS Grins 6. 1140 The TTV Chan 
Show. 1240 pm Opening Shot 

1.00 fTH News; Weather. 

1-05 London Today; Weather. 

1.10 NBA Basketba*. Alton Byrd Intro- 
duces the game of the week. 

240 lnte m aaond Rugby UritoTL Trarts- 
vad v Engtand. Uve coverage from 
Johannesburg os England prepare 
far next Saturday's Rret Teat agalnat 
South Africa. 

4L40 nil News; Weather. 

B.OO London Today, Weather. 

ALSO Bufieeye. Jim Bowen firee the que»- 
ttons and Laeanna Maddock does 
her bit tor charity in another edftton 
of the darts-txraed quis. 

BUM Ba yw ehJ r. MKch cals In a street- 
wise Long Beech Hteguard when 
gang warfare threatens the peace of 
the coastline, and CJ tafia under the 
apdl of a magfdan. 

048 Stars In Thafar^wa. Matthew Kely 
invite live contestants to take the 
stage as Brenda Lee, Don McLean, 
Richard Fakbrass, Howard Keel and 
Qfivta Newton-John. 

7A0 The Brian Conlay Show. Mtehaol 
Bolton and Chas and Dave joto fun- 
nyman Brian Conley to another 
hoping of music and oamedy. 

(LIB You've Been Framed! 

848 rm News; Weather. 

MB London Weather. 

940 TaggarL The Glaswegian detective 
and Ms afcfaMck Jandfae Inv es ti ga te 
when a woman’s murder prows to 
be the latest fa a tong Bne of attacks 
by a calcuiattng assailant nick n am ed 
the Mechanic - can they find the 
kfitar before he strikes again? Fee- 
tro-tongth episode of the powerful 
pattce drama, stoning Mark 
McManus, James Macpherson, Stan 
Thomas and John BUhaL 
HAS Sword of Honor. Second of a 

tour-pal romantic drama about a 
soldier and his sweetheart who 
struggle against afl odds to remain 
together. Starring Andrew darks, 
Tracy Mann and MMd COghfift ITN 
News HaacBnee. 

14B Tour of Duty.; UN News Head- 


240 The Big E. 
348 New Music. 
44S BPM. 

BuOO Hot Wheels. 


CHANNEL4 


800 4-Td on Mew. 840 Esrty MOnfina 1 IL 00 
Trans Worid Sport. 1 LOO GooBe Gomes 1X00 Sfan 
Ore AlUbure 1240 pm Bomber Qw. 

1-00 Htat Sea of Sand. FBchand Atten- 
borough hMds a daring Bghth Army 
mission to destroy Rammers desert 
ftiel dumps. Second world war 
adventure, with John Gregaon and 
Vincent Bafl (1958). 

4L4B Roctog from Keropton Park and 
Doncaatwr. Doncaster. The 2.55 
Fomie Greavee Handkap, 325 
Koepmoat Hoktaigs Stakes (H*cap), 
3J55 Doncaster 2,000 Stakes 
(H'cap), and the A45 Dtob Lupton 
Broorrltead Stakes. Kempton Paric 
The 3.10 Crawfey warren Handcap 
Stakes, 3.40 Broking Handcap 
Stakes, 4.10 Crawley Wanan Heron 
Stakes, and the 4,40 Underwriting 
Hancficap Stakes. 

B40 4 Goes to Gtyndaboome: The Mar- 
riaga of Hgaro. Mozart's comedy, 
broadcast five on the opening rfsyw 
of the new opera house to mark tha 
60th annivwsary of the Gtyrxto 
bourn tosttvaL Starring Gerald Fin- 
ley, Afison Hagtey. Andreas Schmkfi, 
Renee n emmtig and Marie-Ange 
Todrovttch, tha place tsis a comic 
tale of mistaken identity, kidnapping, 
Waekmafl and deceit Musk: by the 
London Ph eha tmon i c Orchestra, 
conducted by Bernard Haitink. 

7418 News Sum me ry. 

7.10 The House That George Butt. Cef- 
obratton of the new Gtyftdabounw 
opera house. desSgrasd by architects 
Mchael Hopkbw and Partners. 
Christopher Swarm's film fotows the 
devetopmant erf the auditorium from 
Initial plaining to this yeerta festival 
reopening, and pays tribute to the 
gritty d e termination of those 
involved, inducing Sir George Chris- 
tie, to ralsa the necessary £34m. 

8.10 4 Gaea to Q^ndaboumK Tha Map. 
rfaga of Figaro. Continuing Mozart's 
classic comedy, broadcast five from 
the new opera house. 

10.10 Flni: The Go-Between. A young 
boy Is tragicaffy drawn Into an affair 
between a tanner and an aristocratic 
gH. Drama based on L P Hartley's 
novel, starring Jude Christie (1070). 
1840 Late Licence. 

1SL30 No Cure for Cwcer. 

1.48 H erm a n's Head. 

All Naked CHy. 

800 Beevis and Butt-Heed. 

840 True or False. 


REGIONS 


M LONDON BXCMPT AT 1W 


1240 Moutac. Games and Mdao*. 1 X 6 Angle 
News. 1.10 Cannon lima. 140 World CUp hW of 
Fame- 0 X 0 Angle Nsws and Sport 0 X 6 Angfa 
Waariwr. T14S Navar (3w» an tech. (1071) 


1240 Marias, Gamas and Wdeoa. UOO Boriar 
News. 1.10 Rockapcrt. 140 tel toa VftxkL 4X6 
Border News end Weather 810 Cartoon Time. 
1146 Never Gfm m kwh. (1071) 


1240 America’s Top 12 1X6 Canfrai News 1.10 
Movies, Game end Waos. 140 Rodapo n. 3X0 
Central News 8 X 6 Speedy and Dally. 845 Loot 
W aaftwr . 1140 Protocol. 0084} 


1240 HaUL 1X8 CMnnal Otwy. 5X0 Chwvwl 
News. 8X6 Pufih*a PMQoe. 8,10 Certoon Time. 
1146 FtN Exposure: The Sex Tapes ScandaL 


1240 Spots. 1X5 Gnaapbn m er N naa 1.10 Teta- 
Itaa. LAO RockrporL 6X0 Grampian HaadfcwsSXS 
Qrsmptan Nsws n eria w . US Gramptaai Wawhar. 
1146 New Gtva an Inch. 0971) 


1240 Moriaa. Games md Videos. 1X6 GmnacM 
News UO Roekaperi. 140 SM the World. 446 
Grenada News 8X0 Portcy Pig. 1LSS Navar QM 
an inch. (1071) 

Hite 

1240 Mtartd Cup HaB Of Fams 1X8 HTV Nawa. 
1.10 aefl tha Worid. 140 Cartoon Tima. LOO HTV 
Nawa. 8.10 Cartoon Tkns 048 HIV Weamar. 1146 
Never Give an taefi. (1071) 

1240 HekL 1X6 Meridian News 8X0 Matter 
News MB Cartoon Time. 1148 ftx Exposure: Tha 
Sex Tapes ScandaL (ISOS) 


1240 The Chorptons 1X0 Scotland Today. 1.10 
TaleAM. 140 Cartoon Tons MO Scotland Today 
OLIO cartoon Hus 845 Soottfan Weather. 114S 
Na 


1240 Moriaa. Game® and Videos 148 Tyne Teea 
Ne ws 1.10 The Mutter® Today. 148 term. 448 
Tyne Teee Saruday 8.10 Cartoon Tkns 1146 Btoa 
Suede Shoes 


1240 Movies Gamee and Videos 146 ITTV Live 
New® t-10 WCW WartdwUe Wreatmg. 146 Car- 
toon Tkns 6X0 UTV Live New® 3X6 Cartoon Tims 
848 UTV Lhm News 1146 Never Give an kich. 
(1071) 


1220 Maries Game* and Videos 1X8 Weetcouv 
News 8 X 0 Westooutty News 1148 New 
i or Inch. (1071) 


S.1 


1240 Movies Gamee aid Videos 1 X 6 CNenda- 
News 1.10 The Mutter* Tottay. 140 Zona. 446 
Calendar News 6.10 Canaan Tkns 1146 Otoe 
Suede Shoes 

I 4 C WMee a Channel 4 eneph* 

7X0 Early Montog. 1220 Ruining the Hate. 8 X 0 
La Mato. 8 X 6 Braekakto 840 Brave New Worid. 
7X0 Tyfrrytfi Teg. 740 Oal yn Ftahc. 220 LtygaM 
Sgwar. 040 NawytMon. 0X0 Home IrnprovamanL 
0X0 NYPD BfrM. 1046 The Houaa That Garage 
Britt. 1148 The Can That Ate Paris (1974) 




SUNDAY 



| BBC1 j 

BBC2 

■ LWT | 

CHANNEL4 | 

R REGIONS 


i 

; .. y. 

• -i ' 






740 Hany* Cat 745 Johnon and Friends TAB 

Ftoydays 0X8 Blood and Haney. 8X0 UV Btts 

IMS Baber. 210 Nears *16 Faflfi to Faith. 220 

Ith h tha Day. 10.15 See Head 1020 anakkig 

Gtoes llXO .Oomputing for tha Lme Taniftad. 

1140 Talaa from the Map Room. 

12X0 Craan trytT fa L Rupert Segar debate 
the case for and against fox hunting 
- is ft a justffiabto form of country- 
side management or merely cruel 
slaughter? 

1288 Weather lor the Week Ahead. 

1230 rjaiaiL 

-1238 On Ihe Record. PolUcalarHilysto 
vrift.Jr^ Hufnctoa, ...J — 

1X0 EmrtEndera- 

2X0 FftK Eacepe to Wham. Second , 
world war advenhae about a spoup 
of Aiflad PoWa planning a simute- 
naoue prison break mxf art robbery. 
Roger Moore; Dadd Niven and Teiy 
Barelas star (1078). 

4X8 JhOVnxK 

8X0 Uta teto. Tony Waite appeals on 
behotf of Vkam Support 

8X0 MeetarcheT. Pat MacDonald and 
'Rick Waksmsn Judge tha ouHnary 
efforts of contestants from Lkiooto- 
sNre, Northamptonshire and Cam- 
bridgeshire. 

6.06 News 

6X8 Song® of Praise. Alan TBc hma r sh 
visits the Lake District. 

7X0 Last of the Summer Wkw. 

7X0 Hfrn: Private Benjamin. Comedy, 
starring Goldie Hawn as a scatter- 
brained widow who enlists fan the US 
Army - with chaodc cxmsequences. 
WMh Armand Asaante (1980). 

218 Nawa and Weather. 

8X0 Famfly. Paula struggles desperately 
to make ends meet and bold the 
famty together after throwing Charto 
out of the house, tumtog increas- 
ingly to drink as her problems pie 
up. Final pert of Roddy Doyle's gritty 
domestic drama. Starring Ger Ryan, 
Sean McGWey, Barry Ward and Des 
McOkwr. 

10X0 Mastermind. 

10X0 Everyman. The Church of Christ to 
one of the world's testet-growfng 
refigious cults, but many former 
membara claim it uses brainwashing 
techniques to ensure con f or mi ty. 
Using hidden cameras, the pro- 
gramme Mows the efforts of anx- 
ious parents Mite and GBI 
WesHEaoott to persuade their 
daughter to leave the group. 

11X0 The Sky at WgM. The role of the 
Royal Observatory in Edinburgh. 

11X0 Fftm Captive Hearts. Drama, wfth 
Chris Makepeace (1987). 

1X0 weather. 

14 


8.18 Open UnNsistty. 0.10 Hdriey Fbodto Bbd. 

226 Spacevsts. 240 Bevel's American Tales. 

10X6 The Movie Gams. 1020 Grange HO. 1046 

TOT. 1130 WMe Fang. 1145 The O-Zons. 12X0 

Around WastnWwfar. 

12X0 Suaday Grandstand, introduced by 
Stave Rider. 1235 Motor Racing: 

The Spanish Grand Prfx. 2.45 Golfr 
The PGA Championship- Third-round 
action. 330 Wttter-Skfing from Klr- 
tens Resort The European Masters. 
4.15 Golf. Tones may vary. 

210 Ibe Natiaal World. Film fotowing a 
pack of yafiow mongooses In the 
JCotatud DaurL-ooexf thajworidto — 
most Inhospttabie environments. 

Last fri series. 

7X0 The Money Progr a mme. Steve 
Annatt reports on Bmptoyars who 
actively XscrlmlnatB against mfdtfie- 
eged employees, and profBes others 
campaigriing agalnat the unt h fc i kfrig 
assumption that the ov*r-40a are 
Incapable of competing to the worit- 
piaca. 

7X0 D-Day: Secret Maps. Historian 
ffehard Hoknes describes how 
Afied mNtary planners acquired vftrf 
tnfam w Bon about Germrai defences 
as they prepared for the massive 
Invasion of Nad-occupied France to 
1944. The programme, commemora- 
tkw the 50th annivereary of the 
D-Day landtags, reveals how ordi- 
nary people risked their Ivee to map 
the Normandy coastikie. Inducting a 
French racing cydtat who hid 
sketches in toe frame of his bicycie. 

210 Watergate. Account of Nbcon’a 

attempts to sack special prosecutor 
Arehfcald Cox when he demanded 
the president hand over secret Oral 
Office tapes - an attempt to evade 
Justice which revealed the fill extant 
of his deception to the American 
people. 

John S a ra fa ns’ Likely Stories. 

(hand Pita. KlghHghte of the Span- 
ish Grand Prix from Barcelona. 

10X6 Mother Love. Fiona Bruce talks to 
people who were saxualy abused as 
chJtoen by women, and examines 
why the medical profession to so 
reluctant to acknowledge the truth 
of thrir stories. 

10X8 Mwtadrame. 

10X8 Rtoe Carnal Knowledge. Comedy 
efrarna cftroniclng the saxual atti- 
tudes and obsessions of two male 
friends from ootiege throujTi to mid- 
dle ag& Jack Mchobcn and Art 
Garfunkef star (1971). 

1218 Goffc PGA Championship. 

ThM-wund h lgha g hte from Wfent- 
worth. 

1X0 


exo GMTV. 028 The UMast Hoba KM5 LWt 
1040 8 uKtoy Morning with Sacentoe. 11X0 Monv 
IngWbraNpL 1200 Suiday Morning ttBi Sacomb®. 
1220 pm Moriaa, Games and videos. 1248 Lon- 
don Today; Waotwr. 

1X0 ITN News; Weather. 

1.10 Tha Judy Ftanlgan Debate. 

200 Hannah USA. 

2X0 HtaE Mother Holla. A magical dd 
woman helps a young boy win the 
hand of Ms true loveu Fatty-tele 
adventure, starring GMtotta Mastaa 
(1984). 

218 Country Ways. 

XXO -Highway to ftoavan' Jonathan . 
helps an eideriy man who has been 
farced to live In a retirement homo. 

8X0 Tha London Proy em roa. Daato 
with threat to dose Hackney's 
Queen Bzabeth Hospital, which has 
cared far deprived and disadvan- 
taged ohikhM far over 100 yens. 

0X0 London Today: Weather . 

0X0 (IN News; Weather. 

230 Thrombi the Kayhofa. Sir David 
. Frost hivttea paneffista Eamcrtn 
Hoimo 8 , Sian Lloyd and WBia Rush- 
ton to guess tf» myatary home 
owners. 

7.00 Mother's Ruin. New series. Com- 
edy, starring Roy Sarradough as the 
Jong-oufforing son of domineering 
mother Dora Bryan. 

7X0 tooprtoa! Surprise! 

8X0 CadteeL New series. Sfr Derek 

Jacobi stare in the flrat of four who- 
dimfta sat in 12th century Shrews- 
bury as an Inquisitive monk who 
turns detective to solve a murder. 
10X0 Spitting Image. 

10X0 Tha Houaa of W in d so r. Kata's 

inability to operate the now domes- 
tic daankig appBancae causes 
another royal disaster. Comedy, 
starring Warren Clarke, Serena Gor- 
don and Louisa Gemwine. 

11X0 ITN Mews; We a ther. 

11.10 London Weather. 

11.18 The South Bank Show. Prone of 
American writer John Stafabeck. 
whose work is cwrantfy undergoing 
a revival wfth hb novel of Mice and 
Men befog adapted fbr the blg_ 
screen, and a forthcoming US TV 
aeries based an the book Ttavete 
vrith Charley. 

1218 SaB the World, 

13X8 Married - With Children. 

1.18 Cue the Music. 

210 The Rotaid-the- W ortd Yacht Race; 
ITN News HeacHnea. 

218 Fflrn: Marriage is a Private Affair. 
Romantic drama, starring Lam 
Turner (1944). 

4X0 Get Stuffed; ITN News HaadBnee. 

230 SnookaR The European League. 


210 Earty Mooting. 248 The Odyssey. 1215 
Savad by the BNL 1246 ReaMde. 1148 Utfla 
Houaa on ttw Rafrio, 1248 pm Surf Poteloaa. 

1.10 nm: Kay* of the Kingdom. Drama- 
tisation of A J Cronin's novel about 
tha Ha of a 19th century Scottish 
mtaeionary (Gregory Pedg. With Vin- 
cent Mce (1944). 

3X8 S*y Little Goosol 

4X0 British Team Tennis. Brentwood 
Ladies, captained by Sara Gomer, 
take on Northumberland Ladfas, rep- 
resented by Tracy and Gillian Smith. 
'4X0 RJgftt to Reply. Roger Bolton pres- 
ents viewers' comments and Ideas 
about TV. 

8X0 News Summary. 

208 Breokekfa. 

230 The Coaby Show. 

7X0 Bfaountars. Asuvay of north 

American gardens, focu^ig on kidF 
vkfoato who adorn their plots with 
bizarre creations, inducing a plant 
cemetery and a stack of recycled 
rubbish. The programme travels 
from Phoenix to Toronto, reveeflng 
tha merawss taken by many dty 
authorities to dtocourage such 
eccentric ideas. 

8 X 0 Spink Out Brigitte Chaudhry 

argues in favour of tougher penalties 
for dangerous rfrhers, and Collette 
Croaeran Investigates why some 
Roman Catholic authorities In North- 
ern Ireland object to bitegrated 
schools. Presented by Aim Soittxy 
and Minay Boland. 

200 FHnc The Last Picture Show. Peter 
Bogdanovich’s Oactw-winrtna drama 
about We fa a steaefly deefining 
Texas town In the 1950s. Jeff 
Bridges and Cybffl Shepherd star 
(1971). 

11.18 Private View: A Damien Hfrst 
O efac t tan. Quest visitors para 
Judgement on the controversial art- 
tot’s work on dbpiay at the Serpen- 
tine Galery, Indudhg hb notorious 
lamb pidktod in formaidahyda 
11X8 fatemle Oomrera e tlona. Author Lafle 
Ahmed provides an irwight Into Mus- 
lm views on the rote of women In 
society. 

1218 nm; Out of Order. Terne German 
thrfitor charting the reactions of four 
people trapped In an elevator in 
imminent danger of plunging to tha 
ground. Renee Soutendpr stars 
(1964). (BngRetl subtitles). 

1X0 Cloee. 


MM LONDON NXCNPT AT TM 


223 Tha New Soooby Poo Moriaa. 10X8 SyNaaNr 
and TWeety Re. 1240 Ttw Lttbaat Hoba 1248 
Angfe Nsm. 250 Wtah You Wa* Ham? 240 Ttw 
Towering Mama (1974) 3X0 The Wh*® Show: 
8 X 0 Angle Naan on Sunday 11.10 Angfla WMhar. 


223 Pm NawScooby Poo Moriaa. 10X6 OyNaatw 
and Tweety Pto. 1240 Cantnti Maawweric 1246 
Central ftowa 2X0 fra Yora Shout 246 Tata 12 
250 Goriening Tim. 220 Tha Egyptian. (1964) 
040 Zoo Lib wMi Jack Hanna. &lfi Cantrri Nawa 
ILIO Local Weather. 


Si2S The Now Scooby Doo Maries. KXOG Sytvwuar 
and Tweety Pte. 11X0 Dea naraa fcl Gakdarahaa 
1146 aeon. 1240 Godanaria Olay. 1256 ttanp- 
tan Itosdfaea 250 The ridden eya (HH 4 320 
Sal tha Worid. 250 CDunby Mates. 4X0 Moriaa 
Gamaa end Vktooa 4X0 ttnrid Oup Hal of Praia 
540 Tha A-Teran. 210 AppaeL 216 Grampian 
HeadBnes 11.10 Grampian Weather. 

ItflUHflnfl- 

22S The Now Soooby Doo Moriaa IOuOS S yk raat a 
Old Tweety Pto. 1226 Granada on Sunday. 1246 
Granada Nam 250 Stuntmestars. 250 Tha Unda- 
faetad. (19ffl) 216 CoroneBon Street 215 Granada 
News 
NIK 

2S5 The New Soooby Doo Moriaa 10X6 Sylvaaiar 
and Tweety Ha 1226 The Ltfflmt Hoba 1256 
HIV News. 250 HTV Newsweak. 240 An toriWon 
to n emamber. 250 Worid Cup Hones and VHalna 
4X0 Vengea n ce VuJtey. (1961) 640 Journeyman. 
200 D et|an a n*» W e et Country. 216 HTV Nawa 
11.10 HTV Weather. 


228 The Now Scooby DM Moriaa 1206 SyNaabr 
ad TWoety Pto. 1240 Sewn Days. 1250 Meridian 
Nawa 250 Tha Ptor. 223 The Lfadnga 250 Srii 
the Worid. 250 The Capua of Grisly Adana 
(TVM 1883) 446 The Mutton Today. &16 Wtah 
You Ware Heart 245 Jock Ptaze/s Cnaattea 215 
Meridian Nawa 


B20 The Mew Scooby Doo Moriaa 1048 Sylvester 
and TVreaty Pto. 11X0 Danmakl Gatadeachaa 
1145 Stan. 1240 3tacah. 1255 Scotland Today. 
250 Haampe (197® 4X5 U Robin Crusoe DSN. 
(1906) 210 Scotland Today 215 AppeaL 240 
Scottish Passport 11.10 ScottWi Weather. 1215 
Don't Lock Down. 

■mm rm* 

025 The Now Scooby Doe Moriaa 10X6 SyNaetar 
and TWooty Pto. 1220 N w w wa sk, 1255 Tyne Teas 
News. 2X0 Ktftwqy to Heaven. 255 Tha Big 
Gambia (I860) 440 Father Dottng bnesdgstsa 
250 Tyne Taos Weekend. 


225 The New Scooby Doo Moriaa 10X5 Sylvester 
and Tweety Pto. 1240 YfeetsouMiy Update. 1236 
Wsstoountry Nawa 2X0 Saf the World. 240 9ya 
Bye Jimmy. 240 Tha kwtoade Man. (TVM 197G 
4JBJ BJoomfnfl Marvalous. 220 Muxtar, She VWota 
21B Vfastcaunby Nawa 


925 The Now Scooby Doo Moriaa 10X6 Sylvester 
and Twenty Pto. 1225 Tha Union Hobo. 1240 
Calendar News. 250 Wgbway to Heaven. 245 The 
Big Gambia (1M0| 440 Father Dowflng bwett- 
gstaa 350 Celsndar Nawa and Weather 11.10 
Locri Woartwr. 


RADIO 


SATURDAY 


SUNDAY 


BBC RADIO 2 

650 Su|aM BstoL 205 Brian 
Matthew. 1200 Judl Spiers. 
1200 Hayaa an Saturday. 1X0 
The Nms HuddSnaa. 250 The 
Boktafl Days of RacSo. 250 
ftorati# Hflton- 4X0 Paid 
Hahay, 200 NUt Baradough. 
MO Han® MeuNcouL 7X0 
onaraa 2 740 A Gershwin 
Braofrg. 230 David Jpoobo. 
•MU Tha Arts Programme. 
S® 8 Horeto Man. 1X0 Jan 
Bfigra 4X0 8ufrto Bare, 

■RCRAM03 

sssssssss^ 

MBWeetoer. 

IMBsooreflariaw.-Oriara, 
gtaft ftteip, Batoto 


845 London Jazz FeetfvaL 
1240Oasa. 


■KRADCD4 

200 Noon. 

210 The Framtog Week, 

250 Prayer tor the Itay. 

7X0 Today- Haatlne rrandHup. 


IOjOO News. 

miSTrtvte Teat Match. 
1245 To Be a Burrftidn 
Strange tacts about the For*. 
11X0 Comparing NMos. 


certtnety of c o mposer Fatsr 


aLbrary. 

teDato^ B ^ Or - 0,n ’ 
j^taltec otd n itaaaa 

BeethovoySrattc 

^BPteofiheAon'-. 

■MM ItatolaCItoNc ft! Nkraite. 

J*lra*8nnga.BrN*ifa 

oodTrito ? 

'SEX**'-*** 


a =fSWf5S^IS : 


206 Sport on 4. 

040 BraefaMray. The 
Cotobaan. 

10X0 Loose End*. 

11X0 The Week In 
Wtttodnstar- 
1140 Rem <Xr Own 

ConeepondenL 
12X0 Money Bol 
1225 Pm Sorry I Hawttl a 
Ctoa. 

1X0 New®. 

1.10 Any OwnttorW? 

200 Any Anawsrs? 071-550 
4444. Phonefo ittpona* 
programme. 

X30 Ptayhousee H e nrilne By 
Aason Laonart. 

246 Previous Common*. 
4X0 Thatta Metory- 
430 SCtoora Now. 

0X0 Fie on 4. 

5X0 Mariana Improbable. 
250 News and Sports. 

'226 Week Endng. 

250 The Lodnr Room. 

720 KNeWoecopo Ferare. 
TXOaetradreMflfaTheraw 
Irat Seen Wearing. By Cota 

Daxtot 

UDMuNetoMfrd 
250 Ten to Tan. 


11X0 Henry Nomttta 
En cy dopeettin PoeBca. 

1250 News. 

42Xa Shipping RaacasL 
1243 (FM) Ctooo. 

1248 {LMO As Worid Sacrioa. 


RID RADIO 8 

206 otny Tackle 
. 2X0 The Braakteaf Programme 
0X0 Weekend wtth Kershaw 
and Whtttakar. 

11X5 BpecM foato nm a r® . 
1130 Crime Desk. 

12 X 0 Mkktay EdHtan. 

12.15 SpdrtBcaL •' 

1X4 Sport an Five. 

oxsStoO-Sbt 

735 Setuttay EdBan. 

2X6 Out fids Week. 

1055 The Ttarimant 
11X0 Mght Betra. 

1U6 After Horae 
250U|pAI MghL 


BSC for Europe can ba 
received hi traatm iteg 
on -maitir" wav* 645 BO 

200 Motgenmaserifl. 220 


Gao pa Today. 7X0 News. 7.15 
The Worid Today. 740 
Mertdtan. 200 World Nows. 
215 Waveguide 225 Book 
Choice. 2X0 People end 
Potmen. 0X0 News. 0X0 
Words of Frith. 215 A 2% 
Good Show. WOO Nawa and 
O uritaws Report. 1215 Worid 
Brief. WXO Davriopman t 84. 
1040 Sparta 11X0 Printer** 
Dev*. 11.15 Letter from 
America 11X0 BBC engfah. 
1145 lAttagamagazin. 12X0 
NewsdasK- 12X0 Meridian. 
1X0 News. 1X0 Words of 
Frith. 1.10 MuMnefc 2 145 
Sparta 2X0 Newahour. 250 
Sportsararid. 4X0 N e ws . 4.15 
BBC EngBah. 4X0 Haute 
AkturiL 200 News. 5.15 
Sportaacrid. 200 BBC BifANL 
2X0 Haute Mdue*. 7X0 Nsws 
arid farinas In Goman. 8X0 
Noae; Chkhw Undwtha 8Mri. 
248 Fiatu tha Wattles. 250 
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215 oevatopmenl 94. 030 
Meridtoa 1200 Newahour. 
11X0 Nawa 11X5 Worn *9 
Frith. 11.10 Book Choloa 

11.16 Jazz far the Asking. 
11-48 Sparta: 12X0 Nawadatt. ' 
12X0 Tha MnUtafa Mutttian. 
150 World red BMtt Nawe 

1.16 Good JBpoka. 1X6 The 
John.DUM 4faa 2X0 Nawa; 
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Demon. 200 N a w adatt. 280 
Na nse n - .'Explorer and 
Stetownah. -’aXA N a w ada ek , 
436 BBC GngBtiv 240 New 
and Press Review to Gatman.- 


RAMO 8 

7X0 Don 
Michael AapaL 10X0 Hayaa on 
Sunday. 12X0 Dsamond 
Carrinmon. 250 Benny Green. 
2X0 Alan DriL 4X0 Young 
Musician 1004. 4X0 Stag 
SomritWig Slnnpla 200 Cherfta 
Chaster. 7X0 taohard Btter. 
2X0 8undtty Hrif Hour. 200 
Alan Kara. 1050 Cbe&gW of 
ttw Year Shov w a. 11X0 A 
Camay of Ben 1258 Adrian 
Rnfchan. 250 Atari r 


aieiiaont 

280 Open Untomito: 
Countdown to Algebra. 265 


7X0 Sacred rad Praline. 

ii^uU r^-idu Vwttlttki 

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VVuSisj. 

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Morning. 

12-18 latte Matters. 

100 Royal Ooneartgabouw 
Orahattn Bartck rad Brahma. 
axOMnataan. 

208 The Last Picnic. By Jamas 


2S0Wetockracl Howate. 

4X6 The BBC Orahaaban 
Sfrauas, Chopin. Q**re. - 
856 bitting mum. The Hre 
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630AnnerBytama. O aatoova n . 
7X0 Sunday Ftay: Jfaattlxw. 
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0X0 kauato ki Our Tfcna. Pfaa 

HateeriL Janet Owra Thonoto 


Lyril CrasawriL Karen Tanka. 
ekM-BvanTtaa. 

1056 Choir Worka. Usd and 
Brucknar. 12X0 Ctoaa. 


BBC RADIO 4 

0X0 News. 

21S Pretoria. 

BX0 Muring Has Broken. 

7X0 Nawa. , 

7.10 Suiday Papers. 

7.16 Hw Living Worid. 
7-40SundW- 

25D Jsnat Driay. 

'0X9 Nawa. 

SlIQ SisKtey PapsiS- 

215 Letter tpraAmailca. By 
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250 Morning Bralca. 

1218 Tha Arcftars. Omrtibus 
11.18 Madtomaom. 

H4»Tha New EtKopaam. 
12.15 nesvrttalraa Otaea. 
IXOThaWcrtdTNa Wariand. 
SM Gardenare Quauton Tkns. 
UO .dearie Sadat Phoafaa 
Junior. 

*50 Pick of tha Wm*. - 
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7X0 A Good Read. 

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8X0 (UAI) Open Urthw ra tty. 
280 (HA Causa Criabre. 
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Programms. 

280 (PM) Big Bong. 

1050 News. 

1216 Hancock’s Hrif Hour. 

1046 Staging for a Living 

1116 to Committee. 

1145 Seeds of Frith. 

1250 Nsws. 

12X8 Shipping Forecast. 
1248 (UN) As BBC Work! 
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1253 (AS does. 


6X6 Hot PiraAs. 

8X0 Tha BraaMM PragremnnaL 
9XD MHttt Stawarts Sunttef. 
12X0 Mkktey Eddon. 

1210 The Big Byta 
102 Sunday Spore 
7X0 News Extra. 

736 Black to ttw FUura 
250 the Utonwta Pwvtow. 
1058 SpeeW AarignmanL 
10X6 Crime Dock. 

11X0 Mght Extra. 
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6X0 Nawa and feature* In 


German. 8X0 Composer Of 
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Letter from America. 7X0 Jazz 
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215 Crossing ttw Bonder. 2X0 
Rem Our Own Co n oraondeni 
8X0 Write On. 250 News. 258 
Wonta of Fsfih. 218 Ray on 
Record. 10X0 News and 
Bustoses n eria w . 1215 Short 
Story. 10X0 Fofc Routes. 1048 
Sports. 11X0 Nawa; Sdsnca to 
Action. 1180 BBC English. 
1140 Nawa and Press n eriaw 
to German. 1200 News. 12X0 
Pfay of tha Week: Racing 
Damon. 250 Ne w ahour. 8X0 
Nawa; Between Russia and The 
Raich. 2X0 Anything Goan 
450 News. 4,18 BBC EngBafr 
4X0 Nawa and faetues in 
German. 5X0 Nawa. 218 BBC 
English. 2X0 News end 
Buatoaaa Redon. 218 Printarta 
DeriL 2X0 News and tariues 
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Musician. 2X0 Grape Today. 
200 New*. 200 Wonta of 
Frith. 216 Al ttw Woridfa a 
Football Pitch. 2X0 Brain of 
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New® and Pun frees Review, 
ll.lfl Short Buy. T130 Letter 
from America. 1146 Sparta. 
12X0 Newadeak. 12X0 
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N ewadari i. 280 Oompoear of 
the Month. 4X0 Newadeak. 
4 30 BBC Engttah. 445 
Buhnwgazto. 


CHESS 


No human player will be able 
to mock chess computers again 
after last weekend's Munich 
tournament Pentium Fritz S, a 
new version of an £80 model 
and powered by Intel’s latest 
microprocessor, demolished 
the grandmaster elite at ftve- 
minute blitz chess. 

Fritz 3 defeated Kasparov, 
Short, Anand, Kramnik and 
Gelfand in amassing 12% 
points from 1? games and shar- 
ing first place with the worid 
No 1. Kasparov salvaged 
human dignity by slaying the 
machine 4-1 in a play-off Co r 
the 920,000 first prim, 

Pentium Fritz can analyse 
more positions In a single 
game than most humans do in 
a lifetime, so GMs blamed their 
defeat on the blitz format 
where calculation speed counts 
for more than strategy. But 
some also seemed psyched out 
K ramnik, the teenage wunder- 
klnd, blundered a bishop in 11 
moves; the solid Chermn put a 
knight en prise; and even Kas- 
parov lost on time when a 
pawn up. 

So is Intel, already the 
game's leading sponsor 
through Its backing for the 
PCA world championship and 
for the speed chess Grand Prix, 
poised to create the best player 
with superior hardware? Not 
yet, at least Pentium Fritz pro- 
duced a few self-destructive 
ideas, which Kasparov in par- 
ticular exploited through the 


strange opening I e3> unknown 
In serious chess but encourag- 
ing the PC to create defensive 
gaps (6 Kasparov, White; Pen* 
tium Fritz 3, Black; Munich 
blitz 1994). 

1 e3 dS 2 c4 dxc4 3 B)cc4 eS 4 
d4 exd4 5 esett Bb4+ 6 Nc3 MBS 
7 N£3 0-0 S 00 Bg4 9 Be3 aS? 10 
h3 Bh5 U g4 Bgt3 13 Ne5 Nbd7 
13 ft Nxe5 14 dxeS Qe8 15 Qel 
Ne4 IS a3 Bzc3 17 bxc3 Qc6 18 
Ba2 h6 19 £5 Bh7 20 Bd4 Ng5 31 
Qe3 BfeS 22 M Ne4 23 g5 hxg5 
24 hxg5 g6 25 e6 fiffifi 2fi fse6 

Re7 27 Rael b5 28 Qze4 Qw 4 29 
Rx&4 b4 30 Rf? b3 31 Bxb3 c5 32 
Rxe7 cxd4 and Black resigned. 

No 1023 



M Harrison (BBC) v W Dunson 
(Bast Ham), London League 
1994. White (to move) won by a 
tactic every club player should 
know. 

How did the game end? 

Solution Page XX 

Leonard Barden 


BRIDGE 


The finesse often lures the 
declarer to his doom. In this 
hand the declarer listened to 
the voice of the siren: 

N 

4 A65 

f A 10 9 4 
f 10 9 a 2 
*KJ 

w s 

4KQJ97 4843 

Y 6 Y 52 

+ KJ73 4 664 

4854 4 10 9 6 3 2 

S 

4 10 2 

YKQ J873 
4 AQ 
* AQ7 

With North-South vulnerable. 
South dealt and opened the 
bidding with one heart West 
over-called with one spade, and 
North raised to four hearts. 
Sooth said four no-trumps and, 
after the response of five 
hearts, his bid of six hearts 
concluded the auction. 

West led the spade king, won 
by the ace, and South quickly 


butchered the hand. After 
drawing trumps with king and 
ace, he led a diamond and 
finessed his queen. The king 
took and the spade queen put 
the contract one down. We 
would expect even an average 
player to do better than that. 

Good technique lands the 
slam. After winning the open- 
ing lead, we draw trumps and 
see that there is a certain end- 
play against West provided 
that he holds the spade knave, 
which is likely in view of his 
overcall. We cosh our three 
dob tricks, throwing a spade 
from dummy, and cut adrift 
with the 10 of spades. West Is 
forced to win. and is end- 
played. A diamond return nms 
into South’s tenace, a spade 
concedes a ruff discard. 

That is a perfect example of 
rilminntifm and throw-in. Only 
if the spade knave is with East 
and a diamond is returned, do 
we take the finesse. 

E.P.C. Cotter 


CROSSWORD 


No. 8,465 Set by DINMUTZ 

A prize of a classic PeUkan SouverSn 800 fountain pen. Inscribed with the 
winner's name fbr the first correct opened and five runner-up 

prizes of £35 PeUban vouebera. Solutions by Wednesday June 8, marked 
Crossword 8,465 on the envelope, to the Financial TUnea, Number One 
Southwark Bridge, London. SGi 9HL. Solution on Saturday June 1L 



ACROSS 

1 Dedicated. like one who can- 
not keep off the snow? (8) 

6 Double bill, one with a 
bloomer (6) 

10 Hazards of nm with defective 

skis? (5) 

11 The edge or Forest Hills? (9) 

12 Synthetic stuff that came in 
from Interpol yesterday (9) 

13 More than one spoke of bones 

<5> 

14 Not an original piece of office 
equipment! (6) 

15 Went oat in east wind (7) 

18 Roughly handles clumsy mis- 
sus who has swallowed a key 
(?) . 

20 (3ft of old money (6) 

22 Variety of bream, light for 
travellers (5) 

24 Sort of roil (A-E, etc)7 (9) 

25 Flasb-bulb atemant? O) 

28 Gold piece in path of satellite 
(5) 

27 Standing in tar pro- 
duces.. ..(G) 

28 ... . skin lesions - get sur- 
geon to bring in number one 
antisepsis man (8) 

Solution 8,464 


□□□□a 

□ □ H 
aatDQQ 
U □ 0 

□ □ 

noaa 

□ □ a 
□□□□□ 
u □ 
□□□□□ 

□ Q 0 
□□□00 

□ II □ 

0QLUHQ 


WDOTOIS &4S3: <*. dements, Ni 
Gaul, Shankhlll, Co. Dublin; I 
Ha nrflakis, Surrey, &0. 
rads, Belgium. 


DOWN 

1 Short from bar put Into pdfo»r 
( 6 ) 

2 Prohibits grant in Norfolk 
town (9) 

8 Worker on dace, or other parts 
of mine? (8.7) 

4 One who forces payment from 
retired Thespian (7) 

6 Gathering of clan out in 
Groats? Well done! (IS) 

7 Variety of beet scorched, we 
hear (5) 

8 Bitter, better halves of some 
Ashes? (8) 

8 Opposed to a stanza (6) 

16 Retired, the Spanish noble- 
man-soldier need not be con- 
sidered (9) 

17 Right to blame me, possibly, 
for the state Mummy Is in (8) 

19 A little speculation that Is 
producing coin (8) 

20 Like heat-retaining garments 
mentioned in this column? (7) 

£1 Trophies for food dishes (6) 

22 Father, for fltnmpln, trapped 
by chance (5) 


Solution 8,453 












XXII WEEKEND FT 


FINANCIAL TIMES WEEKENP_MAY_ 2 §/MAYM_lgg 4 ^ 


Last year a 
biography of Mrs 
Norma Major - or, 
if we are being 
old-fashioned, Mrs 
John Major - 
claimed that the 
Majors’ favourite 
Him was Being 
There. I entirely 
concur with their choice. 

In case yon did not see that mar. 
venous this, in essence, was 
the plot: a man no one Knows any- 
thing about, a gardener called 
Chatmcey, rises without trace to 
become, by the end of the film, a 
serious candidate far the US presi- 
dency. 

Chatmcey, played by Peter Sell- 
ers, utters only mundane senti- 
ments in a halting monotone but 
this convinces the Republican par- 
ty’s power brokers that he is a 


Major additions and omissions 


Dondidc Lawson on a prime minister who has invented himself 


sure-fire winner. In Chauncey's 
bromides everyone seems to hear 
what they want to believe. He has a 
deadly innocence. No wonder the 
Majors liked this film. 

John Major must, at some level, 
have appreciated the similarity 
between his own, strangely intangi- 
ble. rise and that of Chauncey's. If 
he did not see the similarity, that is 
still more revealing. 

Do not protest that the urban 
John Major could not identify with 
a gardener. In an interview with 
Farmers Weekly, a few days ago. 
Major disclosed an unknown fact 


his father was once a farmer. 

Farmers Weekly, you see, had 
asked Major how he had M such 
obvious empathy with agriculture". 
(Well, it was obvious to Farmers 
Weekly , anyway.) And Major 
replied: “It’s simple. My father was 
a farmer . He lived on a sman farm 
somewhere in Shropshire.” 

Francis Wheen of The Guardian. 
a keen student of Major’s mysteri- 
ous past, immediately rang 10 
Downing Street, which claimed 
that Major's father farmed near 
Bromsgrove in 1910. 

As Wheen pointed out. Major was 


an unresponsive minus 33 years old 
at that time, and - a minor point 
this - Bromsgrove is not in Shrop- 
shire. This, of course, does not 
mean that Major made everything 
up. Family folklore is a peculiar 

thing . 

Yet what I heard about this, my 
mind immediately went back to an 
Incident a few months ago, when 
Major visited Pittsburgh, centre of 
the US steel industry, as part of his 
American tour. I recall that he 
made & great hit by recounting that 
his father had been a steelworker 
in the city. A farmer for Farmers 


Weekly, a Pittsburgh steelworker 
for the American audience... a 
pattern emerges. Major’s father, 
and therefore by extension John 
Major himself, can be all things to 
all people. 

If John Major were a different 
sort of politician, this would be a 
point hardy worth making. But it 
does seem all of a piece with 
Major’s approach to wider political 
issues. 

On the one hand he win appeal to 
the pro-Europeans in his own party 
by claiming to want Britain to be 
at the heart of Europe. On the 


other he is free with insulting ref- 
erences to the European Commis- 
sion, whenever it is necessary to 
appeal to an audience of Enroscep- 
tics. 

There are those who wQl argue 
that this merely means that Major 
is a typical democratic politician, 
that one who wants to become 
prime minister in a democracy 
most recognise many constituen- 
cies of interest, not just one. But 
that has not been true of Major’s 
most remit Conservative predeces- 


ousiy dogmatic, even far pobttc, end 
so too was Edward Heath, eve* 
though he always pretended to be a 

"consensus potittetoa 1 *. NO, Major** 
technique is very much Ids own 
invention, very much a reflection 
of Us own particular character, 
Itself a product of his unsettled 
family background. 

His father, Tom M ajor-Ball, was 
an itinerant figure, moving from 
place to place, trytog Ms based at 
any number of wacupattwis. tnctad- 
tog the citcus. 

No wonder the young John Major 
learned tin sMB or fitting to with 
prevailing drcumufanat, no mat- 
ter bow fluctuating. 

The only problem la tin eld one: 
you cannot tool aQ of-the people all 
of the time. Except to the movies. 


sore. 

Margaret Thatcher was notori- 


Y 


oram Sheftel is 
Hollywood's 
dream of a 
defence lawyer. 
He is tough, he is 


Vilified defender of the faith 


pugnacious, he always fights 
for the underdog, and he is 
never happier than when he 
ha s a chance to take on the 
establishment 

Sheftel’s skills were dis- 
played on the world stage 
when he defended John 
Demjanjuk, the Ukrainian- 
American auto-worker accused 
of being a sadistic Nazi camp 
guard. 

For Sheftel, the trial ended 
in a spectacular - and unex- 
pected - success, but also cre- 
ated a social catastrophe which 
has dogged him in the six 
months since his victory. 

In the ageing, Inarticulate 
figure of Demjanjuk, the state 
of Israel thought it had found a 
man who could represent the 
frihnwian face of the Holocaust 
for a new generation of Israelis 
- and to drive the lesson home 
tried him in a theatre hail and 
broadcast the courtroom pro- 
ceedings live on television. 
Sheftel argued that the wrong 
man was on trial and - even 
more unforgivably - he won. 

The legal battle, which ended 
in September, resulted in 
Demjanjuk being released by 
the Israeli Supreme Court after 
a series of appeals. 

But the passions associated 
with the Holocaust could not 
be calmed by a dry. Judicial 
decision. As the international 
success of Steven Spielberg’s 
film, Schindler's List, attests, 
the Nazi genocide retains the 
power to squeeze tears out of 
the most sitcom-saturated US 
audience. 

For Sheftel, who many still 
fault for being an the wrong 
side, the Demjanjuk trial can 
never really end. In spite of the 
evidence which convinced a 
hostile court, there are still 
articulate, educated observers 
who refuse to believe that his 
client was innocent. 

So, why, on this issue, do 
passions still outpace reason? 

“I have no doubt that some 
people still despise me," Shef- 
tel says serenely. "Some people 
saw this case as bong about 
the Holocaust, the biggest 
issue in Jewish history. They 
feel that to admit that Demjan- 
juk is innocent is to say that 
the Jewish state is guilty.” 

Hostility towards Sheftel 
reached an apex in 1988 with 
an acid attack which very 
nearly blinded him. Even 
today. Sheftel says that some 
Israelis continue to regard him 
as "public enemy number 
one". But he wears the mass 
censure as a badge of honour 
and says that during the trial 
it served as a goad to putting 
up a more spirited defence. 

“Once I decided to take on 
this case, nothing whatsoever 
could deter me,” he said. His 
loquacious manner and cosy, 
bearded appearance disguise 
the pugnacious attorney 
beneath. "The acid attack, the 


Yoram Sheftel proved John Demjanjuk was not Ivan the Terrible . He tells Chrystia Freeland why 


daily intimidation, in court, 
they all just made me more 
stubborn to succeed. It became 
my personal quest to show 
everyone that there was noth- 
ing whatsoever that would 
mate me break down.” 

A few weeks ago Sheftel 
spoke at the Oxford Union - 
after Fh p fan+iai plan to hold a 
debate was scrapped because 
no one could be persuaded to 
share a podium with the 
defender of accused war crimi- 
nals. Before his speech 
Oxford's L’ Chaim Society 
hosted a dinner to his honour. 

Shmuel Boteach, Oxford's 
rabbi, began the meal with a 
speech meant to pour oil on 
the troubled waters. The rabbi 
described how the case had 
tom Israel apart, first by stir- 


ring up the passions connected 
with the Holocaust, then, by 
denying that rage its release 
when the Israeli Supreme 
Court acquitted Demjanjuk. 
Even so, the rabbi appeastogiy 
concluded, perhaps all Israelis, 
and all Jews, could take solace 
from the fact that the trial had 
reaffirmed the mimwttrannfc of 
the Jewish state to one of the 
principal covenants between 
Jews and their God: adherence 
to the law. 

A stirring and comforting 
moral for a divisive experience, 
but Sheftel would have none of 
it "With all due respect” he 
said, "to commend our legal 
system because it found 
Demjanjuk rnnnqgnt is absurd. 
This affair is a shame and its 
entire conduct was a gross mis- 


carriage of justice. In the end, 
Demjanjuk was acquitted not 
because Israeli courts are so 
just, but because they had no 
choice.” 

With that the L'Chaim Soci- 
ety settled down to an uneasy 
meal, punctuated by broad- 
sides from Sheftel about the 
injustice of Israel i courts and, 
for good measure, occasional 
attacks on the US Department 
of Justice and the KGB. 

“I think I am very much an 
anti-establishment personal- 
ity,'’ Sheftel said cheerfully 
afterwards. "The Demjanjuk 
case was a wonderful opportu- 
nity to expose the weakness of 
our legal system, and, in a 
way, of all legal systems.” 

That, it certainly was. Being 
forced, after a highly publi- 











Yoram SheftaL* 1 have no doubt that some people stiff despise me' 


Bypassing the system 


No wonder I 
am stressed. It 
Is the price I 
am paying for 
going interac- 
tive, as part of 
an experiment 
being con- 
ducted by MIT. 

I thought it 

would be fun, and that interac- 
tivity would push Hawks & 
Handsaws towards the cutting 
edge of mediaworld - utilising, 
as it does, advances in comput- 
ers and telephony. 

And so it has. My screen 
glows day and night Readers 
are talking back in growing 
numbers. They appear on my 
screen with not a moment's 
warning. I’ll be typing away 
quietly when the screen sud- 
denly fizzes and there, right in 
front of me, is somebody 
talking back. Hectoring me in 
real time. Berating and abus- 
ing me. 

I can't just run away, or pre- 
tend that I'm invisible. I have 
to stand my ground. But it is 
all so indisc rimina te. Anyone 
can get through, any Tom, 
Dick or Heidi 

Last Monday was a night- 
mare of interactivity - a con- 
stant stream of tele-callers 
angered by H&FTs protest at 
the wickedness of a bypass 
scheme near Bath which is des- 
ecrating a famous beauty spot, 
Solsbury Hill This is a place of 
water-meadows, badger setts, 


Michael Thompson-Noel 


tranquility and bistory. 

H&H, last Saturday, jetti- 
soned balance and objectivity. 
Stuff them, it thought. It called 
a spade a spade. It talked of 
road-building mania on a com- 
pletely crazy scale, as well as 
madness among ministers and 
decadence in the government. 

As a result, my screen 
glowed phosphorescently as 
callers got through to me inter- 
actively. Their faces were scar- 
let, their language intemper- 
ate. If they could have reached 
through the screen I am sure 
they would have killed me. 

The first face to appear was 
that of the chairman - he did 
not give his name - of an out- 
fit which he described as a big- 
league construction company, 
though not, as it happened, 
one of those involved to the 
rape of Solsbury H3L He wore 
a brown suit and a carnation, 
which wilted as he spoke. 

"What are you?" he 
demanded- “A communist? A 
hippie? One of those media 
nancy-boys? Have you any 
idea, you self-satisfied twerp* 
what damage you can cause 
with your sentimental gibber- 
ing? A bypass scheme like Sols- 
bury Hill stands for progress 
and jobs, for growth and pros- 
perity. For getting Britain 
ready for the 2lst century. Tak- 
ing our place In Europe. It 


stands for our children’s 
future. Our children's chil- 
dren's future. You're a malcon- 
tent and a sniveller. You don’t 
stand for anything. Don't 
believe in anything. You’re an 
aesthete. A worm. A com- 
pletely negative person. God, 
you are rotten." 

No sooner had he disap- 
peared from m; screen than he 
was replaced by a mandarin 


HAWKS 

— & — 
HANDSAWS 


from the highest level imagin- 
able of the Ministry of Trans- 
port Six Robin something 
something. Droll, yet 
extremely dangerous. 

He said: "Rather impression- 
istic, your piece on Solsbury 
HilL Of coarse you have an 
agenda. I acknowledge that 
entirely. But I wonder if you 
realise how wounding your 
stance can be. You may not 
have seen, Michael, a state- 
ment from the secretary of 
state which we promulgated 
two months ago, covering 
many of tha points of such con- 
cern to you. John MacGregor - 


I quote - today announced a 
radical prioritisation of the 
roads programme. It will get 
essential schemes built faster 
and remove schemes no longer 
environmentally acceptable or 
not needed at present 

"This review, said MacGre- 
gor, will speed up delivery of 
the key Improvements needed 
to make journeys run more 
smoothly. And it will minimise 
blight, damage and disruption 
for local communities and the 
environment. As you A7iozc, 
Michael, 90 per cent of ail jour- 
neys in Britain are by road. A 
substantial bypass programme 
of 91 schemes, 16 of which are 
designated Priority l, is 
designed, fundamentally, to get 
heavy traffic out of villages 
and towns, thus improving the 
quality of life for residents and 
visitors alike. We are also keen 
not to encourage commuting 
by road into urban centres. 

*T realise that at 720 words 
Hawks & Handsaws can only 
skim across the surface of 
things, like an intoxicated 
whippoorwill. That is its attrac- 
tion. I myself am a fan, stead- 
fast to devotion. All I am keen 
to do is to fill in, as it were, a 
few of the substantive issues 
that impinge upon Solsbury 
Hill and this unfortunate but 
vital bypass. 

Tve enjoyed our chat enor- 
mously. Felix qui potuit rerum 
aognascere causas. as Virgil 
used to say. Arrivederd, dear." 


cised, seven-year show trial, 
during which at one point 
Demjanjuk was sentenced to 
death, to release the accused 
American was a public humili- 
ation for the Israeli legal estab- 
lishment and, in the eyes of 
many Israelis, a debasement of 
toe memory of the Holocaust 

The US Department of Jus- 
tice came out of the whole 
affair even more dishonoura- 
bly. It stands accused by an 
American court of acting "with 
a reckless disregard for the 
troth” and failing to turn over 
key evidence to the defence. To 
add insult to injury, the US has 
been compelled to accept on its 
territory the man it deported 
as a war criminal. 

The hubris of the Israeli and 
US legal establishments, which 
was eventually so painfully 
exposed by Sheftel. led them to 
behave as if the specific horror 
of the Holocaust gave courts a 
right to ride rough-shod over 
legal niceties. After Demjanjuk 
had been identified as Ivan the 
Terrible, a sadistic camp guard 
at Treblinka, the Ukrainian- 
American was seen as no lon- 
ger deserving the benefit of the 
doubt 

Sheftel, rightly as it turned 
out, criticised the photo-spread, 
cm wind: the initial identifica- 
tions were based as biased, bu t 
the Israeli lower court dis- 
missed his argument as a quib- 
ble. As an earnest American 
student, troubled by Sheftel’s 
detailed explanation of his 
defence at the Oxford Union, 


pot it "But, MT Sheftel, surely 
the Holocaust is above legal 
technicalities." 

To Sheftel’s fury, this atti- 
tude was shared by most of 
Israel's legal community. "It 
was apparent from December 
1990 that Demjanjuk was the 
wrong man and that he was 
the victim of a show trial, but 
not one professor of law, not 
one lawyer, dared to open his 
mouth. 

"This is a disgrace to our 
entire legal establishment. 
They all looked at this case as 
a case about the Holocaust, 
about Ukrainian collaboration 
with the Nkzis and they felt 
that Legal points were irrele- 
vant, ridiculous as this may 
sound for professors of law.” 


T hey came to regret 
that judgment 
after the collapse 
of the Soviet Union 
gave the defence 
access to KGB archives which 
made it possible to prove that 
Ivan the Terrible was someone 
other than John Demjanjuk. 
But by the time the KGB and 
other evidence exonerating 
Demjanjuk became available to 
the defence, both the Israeli 
legal system and the US Jus- 
tire Department were so com- 
mitted to the case that "return- 
ing were as tedious as to go 
o’er”. 

Israelis and Americans tried 
first to ignore, and then to con- 
ceal, the evidence. But Sheftel, 
an adroit spin-doctor, made 


that impossible by during his 
defence with the media. 

Ultimately, the Demjanjuk 
case was really two cases. For 
Sheftel and his client it was a 
question of mistaken identity 
and seeking justice for one 
elderly blue-collar worker from 
Cleveland. For the state of 
Israel ami the prosecution, the 
Holocaust was on trial 

In the end, the first case was 
the one which Sheftel fought 
and won. It is because he was 
convinced that he was repre- 
senting a single, falsely 
accused man. that Sheftel, as 
an Israeli, a Jew, and a mem- 
ber of a family decimated by 
the Holocaust, felt no qualms 
about defending Demjanjuk. 

“I felt no conflict at all I 
wasn't defending Ivan the Ter- 
rible, I was defending a person 
wrongly accused of being Ivan 
the Terrible. If you are con- 
vinced as a criminal lawyer 
that your rfiant is innocent - 
whoever he is - even if your 
country chooses to make his 
case into a show trial that 
should not deter you.” 

Indeed, Sheftel reserves a 
special voltage of his ample 
righteous rage for those 
Israelis who felt otherwise. He 
believes that the low point of 
the trial was when a lower 
court judge pointed out that 
Ukrainians, with their history 
of anti-Semitism, were particu- 
larly inclined to collaborate 
with the Germans. 

An accurate generalisation 
in Sheftel’s view, but insuffi- 


i) 


All the signs 
that now is the 


to invest in Japan. 


We are launching a new investment trust, the 


Schroder Japan Growth Fund pic. to enable you 
to benefit from the potentially exciting returns 
available from Japanese markets. 

As every successful investor knows, liming is 
all. In fact, we have been watching and waiting for 
the right time to launch. 

That time is now. Let us explain. 

We have been tracking a number of key factors 
and arc now seeing real evidence of the curly dawn 
of economic recovery. As this evidence grows we 
expect domestic and foreign investors to drive the 
markets higher. 

For Japanese investments - who better than 
Schraders? Over the lust ten years the Schroder 
Japanese Smaller Companies unit trust has 
outperformed not only every other Japanese unit 
trust* but also every equity unit trust except one 
across the entire industry**. And the same 
management team that produced those returns 
will manage the new investment trust. 

To make sure that you can take advantage of 
the launch benefits call us on Q&00 002 000. or 
return the coupon opposite, to pre-register for 
your full information pack, mini prospectus and 
application form. Details will be sent out shortly 
after the launch date. June 7th. 


Schroder bncsnucu 
Management Limned. 00562 

I FREEPOST 22 (SW IS65J. Lonfeo 
WLE7EZ. 

Ffeaie send me tofonankM oo the 
| Schroder Japan Growth Rind pic. 


: ^ 
^4 


| Pan pctformaxra is ool ftescaarily o gunk io ibefuturc. 1 
The vjIik nf hncwnoUs and flu: income from them may 

I piUtmn modi as oprmdinveiwnnutynatgei back flic I 
jmoum ungmalty inwswd. TbeFimd will mvatTn | 

xvunlttt which am DOtdmOnnoiledn 1 quotcdjn 


I Sicrlinp jnd movcmenla to cxchanps rWa may came the I 
vatuL-ofihi: Fund's ordinary shares and wimntsib J 
fluctuate. Stum? applications wiU be accepted only on the 

I application form uOMtnpMyiOf the Ustrog fartKubn. I ■ 
ThmJvcnnemcnr, whfch does rot constitute an offer- |- 

I fur shdrc\i>wu&Jhy Schroder lovennwu 
Management Ltd Senator House, S3 Quew Victoria . " I 
Suwi. Lnmton EC4V 4BJ. Head Office and Kegbtfted I 
Ollia:. 33 Gullo Lute. London EC2V 8AS. Rcgidered _ 
Im Eopkiml No 189.^3). A member of tMftd . . - | 


Schraders 

Schroder Investment Management 


Mriftqtnl hi I 5 .*u. utter id uiih net iirtomft rcMr*«ted »wce 
1.5X4. SDtwvW JapaneMStndlMliMMMBbiht+iaSW. - 
■Japan stcMc irjfl ajjdr^fifrSjuliyoBtewH 2053. - 


P 






■ Dominic Lamsaa is editor q f The 
Spectator 


dent grounds to incriminate 
his lntQvkhui! cheat “The 
Jews , were treated horribly in 
Ukraine. from the 16th. century 
to the 30th century," he an. 
"But I think it {$ absurd to 
suggest that you. can make 
some sort of historical balance 
by hangtag the wrong man.” ' 

ShrfWsabffity^toflcoa 
gfngfa ma n, *t the back- 
ground of a mind-numbing 
a troc i ty , reroutes rare. Even 
now, even after BsaeU and US 
cotafe have acquitted Demjan- 
juk am excoriafed his accus- 
ers, many acre u&ahteto accept 
that after all the hoopla, 
Demjanjuk is merely an 
obscure mechanic who had the 
misfortune of being. barn to a 
troubled pert of the world. 

After tt had been conclu- 
sively demonstrated that 
Demjanjuk m not Ivan the 
Ten-fete of Tre bfi nka notoriety, 
some lobby groups, and even- 
tually the prosecution. Insisted 
that he. waa guilty of war 
crimes at a different camp. “If 
not Ivan the Tenfele, then a 
Terrible Ivan,* in the catchy 
phrase cotoed by US defence 
lawyer extraordinaire, Alan 
Derabowttz. 

The case was so flimsy - 
after aH for seven years the 
prosecution had tried to prove 
that Demjanjuk was a guard at 
an entirely (Efferent - 
that after twoweeka the Israeli 
Supreme Court canchated that 
there were Insufficient grounds 
to hold a new trial 

But the audience at the 
Oxford Union was uncon- 
vinced. "Demfrutiuk had to be 
gusty of something,” a bewil- 
dered student fold me as we 
filed out into the drizzle. "Oth- 
erwise^ why would the faraafi 
courts have tried Mm fra 1 so 
long. You have to beHeVfcdbi 
something." 




ex if 

&■'/ 

•>// 

v.-s 




v 

- ? FINANCIAL TIMES WEEKEND M A v -»«/M A V 

3 '.■I-'** I S’ 


: ~ *x <; 

• w 


, ' ^ __ 


-, 1 :. 

‘ : v 


SECTION m 


Residential Property 


A SPECIAL SUPPLEMENT 


/r> 


Canny buyers lead a 
modest recovery 


■&>£}; : "--t- ' 355T 7 ^ v£i : * 





F orecasts by estate 
agents that prices 
of prime UK prop- 
erties wiQ rise sub- 
stantially Qi<i? year 
still deter mnw potential sell- 
ers from instructing their 
agents. Savills, for example, 
forecast In December 1998 that 
prices would rise by IS per emit 
by the end of thi* year. 

Although the owners of such 
properties have seen their 
FT-SE 100 shares Hall in value 
by around 10 per afare 

February, and new taras tmri 
s m aller tax reliefs are an irrita- 
tion, they see a glorious vision. 

When home owners riarfde to 
make their long-delayed move, 
they will recoup their losses or 
even make a good gain if they 
bought the property long 
enough ago. Is this picture at 
the back of many vendors’ 
mfrnriB too rosy? The answer 
seems to be, yes. 

The general recovery in 
house prices is modest, mirror- 
ing the modest, fragmented 
recovery of the UK economy - 
although Savins' other forecast 
erf a 25 per cent rise in prime 
central London is proving 
closer to what is happening. 

The consensus amnng agents 
is of a rise, on average outside 
London of between 5 and 10 
per cent They see plenty of 
would-be buyers and do not 
have enmgh houses to satisfy 
them. But these buyers are 
canny. In general, they want 
value and will not pay ‘over the 
odds. If there is competition 
they may go above the guide 
price for a house of Quality. 

“Patchy,” is how James 
Laing, of estate agents Strutt & 
Parker, rails the market “But 
it is an the good side of patchy, 
if one can say that.” Some 
houses sell quickly and in 
excess of their guide price. 


Gerald Cadogan ponders a patchy upturn in the homes market 



*> M i 

QCvnvio 



B £70000+ 

HjJ £gObOOO-£O9 > B00 
{ ] Lena than £30,000* 

□ Insufficient sampla 


rA 


Enrisnd 


JT^l 


r r > ^ 

-y,.\ • ; •; / 

JV-X A 


Cosgraw Hafl, i 
Cote Flat and P 


■ kffiton Keynes, on offer at more then £1.26ra from Strutt and Pninr (071- 
H8 (D442-870 444) 


Examples are Tfllwirar Ban , tn 
Yorkshire (Carter Janas, guide 
juice £370,000), The Limes in 
Rochester (Strutt & Parker, 
£190.000) and the Manor House 
in Princes Risborough (Knig ht 
Frank & Rutley, £450,000 for a 
78-year lease from the National 
Trust). The total may be grow- 
ing, to judge from the agents I 
talk to. 

The practice of popping out 
at the weekend to buy a house 
to sdl on six months later - as 
happened in the 1960s - is dead 
and, I expect, will not return. 
The experience of the reces- 
sion. and the possibility that 
even the well-paid may lose 
their jobs and be unable to 
fund a mortgage or pay school 
fees, has been a salutary fright 
It is too risky now to trade in 
properties in winch one lives, 
except for the occasional super- 
rich development in London. 

This caution is typical of the 
end of a' recession, thinks John 


Husband, of Humberts. 
Although the Woolwich Budd- 
ing Society sees the number of 
fomdies with negative equity 
as fantng below im this sum- 
mer, it is still a huge number 
and manna that a ipaag of debt 
is still inhi biting people's 
movements. 

Some vendors still expect to 
receive what they paid in 1989 
or quote a valuation they were 
given at the time. But houses 
which are priced too high deter 
viewers - and Udders. 

Stockton House, in Wiltshire, 
a superb Elizabethan house 
with rich panfllWwg and plas- 
terwork, which Savills sold 
recently, had to come down 
from £lm to £700,000 before 
buyers moved. In the end there 
were five firm bidders, which 
must reflect rising confidence 
as well as realistic pricing. In 
Sussex, Humberts relaunched 
Street Place, which had been 
on the market for two to three 


years and, thanks to competi- 
tion, sold it quickly for close to 
the guide price of £750,000 flam 
in 1992). The buyers' realism is 
healthy. This time, tb» short- 
age of houses on sale is not 
leading to ever-inflated prices, 
Husband says. Eventually, 
reluctant sellers will see that if 
they do hang on to get more 
next year, the only way they 
can take advantage of any 
higher price is to trade down to 
a smaller house, as retired peo- 
ple do. Or they can take their 
money from a part of the coun- 
try with high prices, such as 
London, to where it wiH go fur- 
ther - Norfolk, for example. 

LOW Inflation in the mid to 
long-term is an equal deterrent 
to overpaying, as is the build- 
ing societies’ reluctance, stem- 
ing from overzealous lnnrtmg 
in the 1980s, to lend such gen- 
erous multiples of income as 
they did then. Of course, inter- 
est rates are low and homes 


n S-!j 






are more affordable than they 
have been for a very long time, 
but the tax relief is now down 
to 20 per cent and will be 15 
per cent in 1995/96 and applies 
only to the first £30,000 of a 
mortgage. 

These new conditions create 
a new property world, where 
renting is again a sensible 
alternative, as it was before 
the second world war and as it 
remains overmuch of the Con- 


tinent. Assured shorthold ten- 
ancies guarantee landlords' 
possession, while tenants con- 
serve tbetr capital 
The flhlifaT and Nationwide 
indices bear out the picture of 
a gentle recovery. They concur 
more or less on how the differ- 
ent regions are doing but not 
on the figures. For the first 
quarter of 1994 both agreed 
that East Anglia and Northern 
Ireland had done well, and the 


Source: Hafltax 

north west. West Midlands and 
Wales worst But Nationwide 
credited East Anglia with 1L1 
per cent growth year on year, 
while Halifax allowed it only 
43 per cent For Wales, Halifax 
saw L3 per cent growth, and 
Nationwide a 5.7 per cent fan. 
In spite of these differences, 
which reflect different data 
bases and different ways of 
handling them, the indices 
remain a useful general guide 


to local variations in the mar- 
ket 

London Is another story. It is 
a large and fluid market, 
where it is easy to see if a 
home is for sale at thousands 
of pounds more than a few 
months ago. Prices have gone 
up, by an average UL6 per cent 
in the year to March 1994 for 
prime property in central Lon- 
don, Savills finds, and by 5 per 
cent in the first quarter, with 
the increases spreading 
throughout the capital 

Wink worth reports 10 per 
cent rises on the edge of cen- 
tral London (such as Hammer- 
smith - W6, W14) in that 
period. Gluttons London Resi- 
dential Agency estimates that 
the average discount of selling 
price to asking price fell to £81 
per cent, down from 11.13 per 
cent in the last quarter of 1992. 

A high-class developer, such 
as John Hunter’s Northacre. is 
putting its money down (mote 
than £20m of it) by buying the 
freehold of Earls Terrace, WB 
with its 21 listed Georgian 
houses. And large dty bonuses 
are fuelling the rises In Hol- 
land Park, an urban “village" 
for merchant bankers. 

It is fair to call this market 
pateby, with its buyers 

reluctant to pay too much, and 
its sellers reluctant to sell And 
it is picky. There is no 
widespread boom. Local 
conditions matter most in 
assessing a price, for buyers 
and sellers. 

More houses are coming to 
market and, by the autumn, 
there may be pany more - 
which may damp further rises. 
Peter Lewis, of buying agent 
Stacks, says there Is no better 
time than now to sell a good 
house in the country In the 
£300,000 to £550,000 range. 

□ It is a raze event when a set 
of chambers comes to market 
in Albany, London Wl. home 
of the great, grand and artistic, 
from 19th century British 
premier William Gladstone to 
writer Graham Greene. 

Savills (071-730 0822) is 
selling F3, on the second and 
third floors at the north end of 
the long passage in the 
building known as “The 
Ropewalk”. It Is freehold. The 
guide price is £850,000. 1 expect 
competition. 



Humberts 


Somerset nmodwaji Hmfauter mUsMre 

Itomtoa )0 mDsa, MS (J2S) 8 oilaa Hadfcnt gHwBi 


BmUanfroDAvon 2 DdlM, Bath 8 mtka, CMppenlin] 3 odes, 
17 mfle* 


West Sussex 

Haymnii Heath 7 mOe*. Brighton B nrflra, 
Gatwicfc Airport IBm&ai 


Hassock* 




; X... 

•' ^ . ST- ~f:' .if- i 

-u- ..yjssp.. 


:-:£y 


A b eautif ully restored. Grade II* 
Listed country home in a charming 
village setting with a good range of 
btrildinga and river frontage 

Entrance hall, drawing room, dining room, sitting 
room/study, cloakroom. kitchen, breaB te room , 
l inm i ity zoom, "m*” suite of bedroom, dressing 
loom and bathroom, 4 farther bedrooms and 
3 bathrooms. 3 secondary bedrooms and bathroom 

a Cour t ya rd with 4 arables, tack Tocm. garag i n g to r 3 

• Coach bouse with planning consent; Tudor born 

• Wiled garden* ana grounds, bested sw imm i n g 

pool fhOiIng rights, paddock t 

fftmnan wldh ■boat ttJ «W O 

jtaKoUMMilaa office (0249)444333 | 

Christopher Mount St Co-, Malmesbury (KM) #**733 S 


A mellow village house with 
cottage and 8 acres 

4 reception rooms, 8 bedrooms, 3 bathrooms, 

2 cloakrooms, kitcben/breakfant room, oil central 
m g 

■ C..gg fn p 

• Outbuildings 
a Cottage 

a and gro un ds 

• Paddocks 


nanfla T sulrui nfflrr pltTI) * 
W»vil office (0933)77277 


North Dorset 

ShafkaOmy WinSta, GDUWbun i 

about Jtta*. A303 (Bnkta* with M3) ID l 




A delightful partly period country 
house in an outstanding setting 
on the edge of the village of 
Tmflcigh and eqjoyfcng views to the 
South East. 

But lfM lW ‘HfI1 | rJnnhfifX Hp, (hawing room* dwinig 

room, sitting room, Hbmnt kJtchmybreak&st roam, 
shower room, mUhy room, master bedroom sake of 
bedroom, dressing room and bathroom, 6 farther 
bedrooms, 2 bathrooms 

■ Potential 32* x ZT • Double g « Tagg 

• Workshop • Heated s w immin g pool with changin g 
room • landsc ap ed gardens with grass tennia court 

In sll ib«nt T2S acres GUI hectares) 
freehold flow sate by prime treaty 

Itetallai (Z i linwiiliM office {0248) 044335 


.. 


\fery well established residential 
adult education centre available as 
pro fi t a ble going concern* Fine 
listed Grade IX building with 
additional wins built in 1976 


23 bedrooms, some with private bathrooms, 
coffee nxnn/bar/shop etc 


• Lovely setting, gardens open far 
National Gar d e n s Scheme 

• Outdoor heated swimming pool 


DoCoOm Coy Jbetuont S' Co (In associatlan with 
Hm I t , ,) 342334 


A spectacular con t empor ary homse 
designed to a very high standard in 
an rural setting 

Drawing room, dining room, study, 2 sitting rooms, 
Utchen/breakiast room, domestic offices, 

6 bedrooms, 3 bathrooms and shower room 

■ Indoor swimming pool with sauna, son room and 
gymnasium • Sports complex with squash court and 
snooker room • Hard teams court • fbrmer cricket 
pitch and pavilion ■ 3 bedroom cottage • Gard en s, 
grounds, woodland and lake 

In all about 17 acres 

Jobtt mmi t u t 

Humberts towns office ( 0273 ) 47 S 8 ZS 
Knight Frank fir Hndoy 071-829 8171 


Dorset 

Sherborne 4 uilcs 


Over Compton, Sh erb orne 




A 


A fine Grade n Queen Anne ^ ^ 

farxaer rectory set in a peaceful 

position with extensive nucal views 
Entamce ball drawing room, dinfag 

cioakroom. sating 

utffit* crflaw^ftmcapal bedroom suite, 3 further 

bedroom inites, 4 second floor bedrooms. 

ba t hr oo m s 


m - fTT 


A nnc Regency Grade H Listed 
co un try house in a nurtare setting 
with exceptional views over the 
oldpaxkland 

4 recaption rooms, 6 b nd tWnms. bathroom, 
doihbam, khxdien/brealc&st room, o3 central 


• Wing suitable fin: staff with reception room, 

kitchen, b athr oom. 3 bed ro o m s a Garaging, 
niithnflfH wg^, frw m ■ Lodge/cottage 

• Garden, grotmds, woocUand and fevcl paddra 


A period cottage in need of some 
repair and xemovadon in deU^htfial 
rmal s e t ti ng with land and 


2 reception rooms, 4 bedrooms, kitchen 


• Garden, paddock and woodland extending to about 
8 acres 


GwMe ndoe CnSIVBOO 

Zbr rote by on d « at 3.00 p m «■ 22 Jane 1984 
rt BI Mh u rnaipt n a viutyo mu 


Dmila IhBtbneue otHee(WBS) M2323 


A ddtifhthd period well modernised 
Listed 18th Centary fimhhonse with 
nsefnl range of farm bniltlbtgs adapted 
for equestrian use with a level Mode 
of nudbnly permanent pasture land, 
shuated in ratal setting 

Sttfavaoc ball, 3 reception rooms, study, 
conservatory/ garden room, Mtrhm/broakfwt room. 
boflsr/ntilHy zoom. Master bedroom suite, 4 farther 
bedrooms, b at hroom, integral flat of shower room, 
kitchenette, sitting room, bedroom, potential annexe 
subject to consents 

• Range of form buiktfaizi including gatoge/staUe . 
block, concrete yard with Dutch born, stabling tor K 
11 bones •Garden and postnro land S 

Itor sale private traacy as a whole or In 2 Iota | 
DetaUat Otippeahaai oCQoe {D249) 444333 I 


Zf 


LONDON Oi riCL * »71-(i29 0909 

m \im Ri s < u \kt! ki;d si k\ i voks 25 cross i:\or stru t • loxdox \\ 1 \ 


Mil 


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FINANCIAL TIMES WEEKEND MAY 28/MAY 29 1994 


AMPTONS 




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GLOUCESTERSHIRE - EAR OAKRIDGE 
CbmcBtsr7 attttM. M5 (J13) iOmifa. M4 fflS) 2Q mBa 
An interesting modem house with spectacular views. 
HaD, 4 reception looms, pool raoov oeBaq 6 bedroom*, 

* bathrooms. OutbuDdixig*. About 12 Kn of woodland. 

2 *A n y^mlilnrV 

Oreocester Office. Thfc (02*5) 654535. 

Joint Agents: Knight Rank * Ruth* tUb MOSS) 639771 


SURREY -WORPLESDONHILL 
A famfly house and eottagn buckfag onto tka go* (M 

5 recqjdon roams, 8 bedrooms, 4 bathrooms (l an stdte), 
3 bedroom cottage- Usanb court Swfcmnfag pooL 
About 2 Vi acres. 


OLD QUEEN STREET - SW1 
A n lifterf freehold residential/ 
office baikllpgqvc rio o k fai g SI James** Park. 
Hall. 3/4 reception rooms, lotcnen/bff Trftit 
room, 5/6 bedro om s. 4 b athi o cm s (2 en suite), 
showw zoom, playroom/staff room, Vnilta. 
Shared private gardensFreahoid. 

Head Office. Teh 071-493 8222 




X&Z 


mw.i 







0 


2 J J 


SURREY ~ HAMPTON COURT HAMPSTEAD, NW3 - THE HBAXHS 

A renovated Gride Rlfated 18th Ceattny home, av eri o okiug Seven m apartments with private tan 
the Palace, Btafay Path and the Royal Paddocks. pri— a, ■&— i partial anil aaa i 

3 reception rams, 4 bedrooms, 2 bathrooms. Cellars. Garage. Amenities inchiiite-lift. povteq scuMstinto 
taking. RUled gudens with stream. FTOsbold. JE45ROOO iatamln pooLkad,aB anM |i«i 

Klngrtoa HBI Office. M: 081-541 162& 4/5 bedroom eyernawita fawr £773,000. 

Joint Aflame John D Wood Tat 071*495 4106. HanqMhad Office. nk871-7M 8222. 


j 1 I' P, L 




#a 




.■^wssscr,: 


HAMPSTEAD, N2 - THE BISHOPS AVENUE 
A dodrfe-fronfad boom approached through efcctrooicaSy controlled moi^ri iron gates 
and act back bom dda renowned toad by over 100 feet. 

4- reception rooms, 4 bedroom auites, study Staff flat with reception room, bedroom and bathroom. 
La n dsca p ed gardens and terrace. Freehold. 

Hampstead Office. Tfct 071-794 8222 or Head Office. TH: 071-493 8222. 


LONDON - HAMPSTEAD, NW3 
A fine Georgian home on Hampstead* 
fiunon* Church Row 

HaO, 2 reception rooms, study; 4/6 bedrooms, 
3 bathrooms. One bedroom Bar. 

South faring waited garden. Garage. 

Garden room. 

Hampstead Office. TeL 071-7948222 
Head Office. TbL 071-493 8222. 


SURREY -TELFORD 

Bantam 4 reflai fiufUfmd ii »gg f«di» BtofaaM»hnt« 
A snbstantlnl country home of character amidst aome of 
Surrey* moat beautiful countryside. 

Hall. 4 reception Uchgp / h uMB t Eo o fw, Myngy 
6 hffiti fy p ii Lodge. Gdi&gzDg. Stflbfin^. \nnmff court. 
Gardena. Woodland and paddodts About 13 '/raaes. 
Gufidford Office. Tfcfc (0483) 572864 or 
Heed Office. lbfc 071-495 8222. 


OXFORDSHIRE - GLOUCESTERSHIRE BORDER 
Bmfoid 6 atibfc tafagAm 0 mite CZfancssfcr ISmffcs 
A fine Grade n Salad vffiaga bene dating freer the 17th ceutmy 
HaH, 3 reception rooms, conaarvahXK 5 bodrooms^dieaiing 
room, 4 bathrooms (3 cut suite). Sdf conMinad thetdbed atufloi 
Ganging. Landscaped pnfan. About 1 acre. 

Abo mDahla; G»»ne u3 bedroom cot tag a w i th garden. 
Cbencarter Office. Ibfc (0288)654535 
Head Office. Ihfc 071-493 8222. 


Head OfiBoes 6 Arlington Street, St James’s London SW1A IBB. Teb 071-495 8222. Fax: 071-491 3541. 

HAMPTONS ESTATES LTD: OFFICES IN ENGLAND, SCOTLAND, THE CHANNEL ISLANDS AND HONG KONG, WITH ASSOCIATES IN EUROPE AND THE USA. 



tbwCfce .*4- 


JOHN I) WOOD N CO 


Establish 







-\*v? > -j . 



LONDON W8 

■Upper Phillimoxe Gardens 


An rx t m a ir riyre rtnm L 
bwiHh Uy docoiafad hoaw with 
a wdi nudntaoned 120ft garden 
andagnage. 


m.\\\ 


SURREY - Englefield Green 
THE BAKEHAM HOUSE ESTATE 
A preattgUms estate with distant views doae to London. 

A remodelled Victorian house in need of improvement with 5 cottages and outbuildings. 
Gardens, paridand and woorfland. 



Principal bedroom aabe with 
2 dressing roams and 2 bathrooms, 
5 farther bedrooms, 

2 farther bathrooms, 

3 icftyiiu u r o o ms , uiiWfvr tery, 
kteben/brealcfast/fanuly room, 
utility room, 2 cloakrooms, 
kitchenette. 


Lease to 2064 (freehold possible) 
£3,3004)00 


,>3»Ha;Oi jan 


071-581 5234 


JOHN D WOOD A CO. 
071-727 0705 


SAVILLS 071-499 8644 
JOHND WOOD &ca 071-493 4106 


WORCESTERSHIRE - Belbrongh ton 
An impresaivelionae^ with spaefams, elegant principal raom^ In an derated setting. 

5 bedrooms, 3 bathrooms, shower room, 3 reception rooms, bfiQhnl room, kitchen, pantry, 
atudla office, print room. 

Coach house and 2 bedroom flat traditional stables, art gaQay, orangery, awbanringpool, 
te nni s court, feerrver 12th cmturycfaapeL 
Delightful gardens and grounds. 

About 11% aaa. . . 

OXFORD OFFICE 0865 311522 


Derbyshire 

Ashbourne 


A well established field 
spodsdubspeeialiaingin 
cor po r al eh o^ rfta fl t y wifli 
day pigeon (s port in g), fly 
fishing and other acthride* 

Farmhonae, stabling, shooting 
lodge, ga me fiahaig lakes. 



LONDON SW3 


Carlyle Square 


A large semi-detached family house 
on 4 Soon; faring west over the 
magnificent garden square, 
with a pretty and secluded 
rear garden. 





BUCKINGHAMSHIRE 

Hyde Heath 


OXFORD OFFICE 
0865 311522 


4 double bedrooms, 
dressing room, 

2 bathrooms, 
drawing roan, 
library, 
diningroom, 
kitchen /breakfast room, 
utility room, 
doakroom. 


OXFORDSHIRE 
Shipton on Cherwell 



A fine raahtrnllat and amble 
fane on the edge of the 
CUttere HOla. 

- Georgian principal 
farmhonae, two fintbar 
fannhoum with two ranges 

-of tredhkmaland motfafp 

hum buildings. 

- In aU about 373 aoes. 
Foraaie aaa whole oeio3 lots. 


AGRICULTURAL 
DEPARTMENT 
0865 311522 


Freehold £935,000 



A disused cement works and 
extrusive quarry in an 
excep tiona l kyrttou adjacent 
IB the Rmr Gherwcll to faa 
north of Oxford. 


Signifirant development 
p otenti s l farl tliw rel a ted 
uses (subject to plannbg 
p a missi on). 

In aDaboet 174 acres. 


CHELSEA OFHCE 
071-352 1484 


OXFORD OFFICE 
0865 311522 



LONDON SE5 
Camberwell Grove 

A fine example of Georgian 
architecture with elegant 
rooms and a self-contained 
Hat, with good access to the 
QtyWca tmlueler . 

5 bedrooms. 2 bathrooms, 

3 reception roono, 
Ufahm/bmkfast room plus 
flat of bedroom, bathroom, 
reception room, kitchen. 
Garden and off-street parking. 
Freehold 090^00 



BATTERSEA OFFICE 
071-228 0174 


■ head office ; . 

■ TELEPHONE.* 071-49^ 4106 - FACSIMILE: 071- 


629 6071 


NINE LOND ON OF FICES • SEVEN COUNTRY BRANCH OFFICES 
HONG KONG OFFICE * LETTINGS & MANAGEMENT: LONDON, SURREY, HANTS A: OXON 
DEVELOPMENT DEPT. - CHATTELS DEPT. 


1 
I 

i 














FINANCIAL TIMES WEEKEND MAY 28/MAY 29 1994 


NEW YORK 







*" "‘*x : bx . 


Paying for prestige and 
a room with a view 


I n a city of densely packed 
spires, the desirability of a 
residence is defined as modi 
by its view as by its street 
address. 2n New York, apart- 
ments with sweeping vistas Of Cen- 
tral Park or the Bast River stm 

r*mrmar > d tha highwat pr gmmmw 

The new owner of a 10-room pent- 
house at Fifth Avenue and 86th 
Street, one of the most prestigious 
comets an Manhattan’s posh upper 
east side, can gaze oat at both these 
celebrated sights, and he paid 
dearly for the privilege. 

The 4,700 sq & residence, occupy- 
ing entire 20th floor of a newly 
renovated building, recently sold 
for $5u05m C£3.45m). It was me of 
the highest prices paid fbr a New 
York apartment since the end. of the 
property boom five years ago. 

The penthouse is elegantly 
appointed, to be sore, with its four 
spacious bedrooms, mahogany-pan- 
died library and marble bathrooms 
equipped with oversized whirlpools. 
Bat so are thousands of less expen- 
sive accommodations in New York. 

What sets the place apart, then? 
“Quite simply, the views axe spec- 


pp 


t aenia r," says Jack Heller, a princi- 
pal in Heller Macaulay Equities, 
winch developed the pr o pe r ty . 

The sale price underscores how 
fer the market has progressed ffmre 
a tentative recovery began two 
years ago. Prices for the most luxu- 
rious flats and townhonses are 
steadily climbing and activity is 
picking np pace. 


tram, the rise in US interest rates 
has pushed many prospective buy- 
ers off the fence out of fear that 
financing will became even more 
expensive as the year progresses. 

"People are always afraid of being 
left behind, it’s a wonderful motiva- 
tor," says Barbara Corcoran, head 
of the Corcoran Group, another 
leading New York realtor. Sales at 


For many New Yorkers west is now best. 
Frank McGurty explains why 


One leading Manhattan estate 
agency, Ambrose MarETia, recorded 
26 town house sales in Ihe last three 
months of 1933, at an average price 
of $L68m (£U5m) against 17 sales 
in the final 1992 quarter, at about 
$1.3m each. “With fewer choice 
properties being offered for sale 
right now,” says Joan Ambrose, 
who runs the company, “1994 is 
going to usher in a seller's market.’ 

On the lower end. buyers are still 
dictating the market and prices con- 
tinue to slip. But across fils spec- 


Corcoran are up 40 per cent this 
quarter. 

Overall, the average price of a 
smart Manhattan apartment held 
firirfy steady at $84420 a room in 
the six months to the of 1993, in 
sharp contrast with the trend dur- 
ing the 1989-91 recession, when 
prices plunged by 30 per cent The 
bulk of Corcoran’s sales, which tend 
to be at the top end, were In the 
$400,000 to $L2m range. 

A one-bedroom flat on Horatio 
Street in Greenwich Village is fairly 







f iin 


" !i 


"Ml,,, 


■w-.asxj. 



A' S 


Views of the nmt alda, CnM Park and ite Reservoir tun Rflh Avenue 


typlcaL The “sparkling and spa- 
cious" 900 sq ft apartment, half way 
b e tween midtown and Wall Street, 
was recently advertised in The New 
York Times at $185^)00. A 1.800 sq 
ft, three-bedroom residence, near 
the Museum of Natural ffistory cm 
the upper west side, was listed at 
$399,000. 

Biiyars last year were able to bag- 
gie down the price by about 18 per 
cent an average; fewer than 5 per 
cent pay the full fare. 

On the rental side, meanwhile, 
the upturn in arid a dearth of 
new cxmstroctian has created a sup- 
ply crunch. With more people 
looking to buy, those who want to 
move house are no longer faced 
with the choice of renting but their 
properties or leaving them vacant. 
As a consequence, leasing is more 
expensive, whether for a modest 
studio near Times Square or a posh 
four-bedroom an Park Avenue. 

Still, where you are located in 
New York is nearly as important as 
what you can see out of your win- 
dow. “The closer you move towards 
Central Park - from both sides, east 
and west - the higher the price," 
says Nancy Packes, head of Feath- 
ered Nest, one of the largest rental 
agencies in Manhattan. 

How much can a newcomer 
expect to shell out? On average, a 
one-bedroom flat rents fbr $1,550 a 
month, a two-bedroom $2,350 and a 
three-bedroom about $3,800. For 
posh apartments in prime locations, 
a one bedroom will command $2^00- 
$3,500, a two bedroom $4,000*6,000 
and a three bedroom np to $10,000 a 
month, whether on the east side or 
west 

Fbr many New Yorkers, however, 
west is now best The area bounded 
by the park and the Undgnm River, 
between 60th and 110th streets, has 
became the neighbourhood of the 
1990s, especially among those with 
children. “It is basically a revolt 
against the values of the 1980s," 
explains Packes. “The west side rep- 
resents old-time values - it's things 
remembered." 

When today’s down-home west- 
aiders were youn g financial hot- 
shots of the 1980s, they may have 
pre fer red the east side’s thrusting 
glass towers and the noisy night 
spots crowded along First and Sec- 
ond avenues. Now they most often 
opt for the stately pre-war apart- 
ment blocks off Broadway and 


. .. \,Yv 



* « ' v S ir 



r * ' * -■ 







1049 rath Avenue: the old Adams Hotel In the centra of the picture has been renovated Into 45 apadoum condomMumi 


Columbus Avenue, and easy access 
to grocery stores and other “neigh- 
bourhood” shops clustered in the 
area. The east side is Gucci: the 
west side is Baby Gap," ax pinms 
one lifelong New Yorker. 

The flesh demand is reflected in 
the price, of course. A new lease an 
a one-bedroom flat an, say. West 
End Avenue cost 10.6 per rent more 
in 1933 than the year before, accord- 
ing to Feathered Nest, which con- 
ducts an annual survey of the mar- 
ket. On file east side, a similar flat 
off First Avenue commanded just 


5R per cent more in 1992. 

Another favourite with famfliw: is 
TriBeCa. a surprise perhaps for 
those who remember the “Triangle 
Below Canal" Street as a factory 
and warehouse district that was 
deserted after dark. 

Like S0H0, file section “South of 
Houston" and above Canal, many of 
TriBeCa’s old industrial buddings 
have been converted into residen- 
tial “lofts”, which often feature 
acres of space and loads of lights. 
“Whether people admit it or not,” 
says Corcoran, “tight is their num- 


ber one concern when looking for a 
place to live.” 

Unlike S0H0, TriBeCa is not 
choked with galleries, wine bars 
and upmarket boutiques. Instead, it 
boasts one of the best government- 
supported schools in the city. Bat- 
tery Park, a few blocks away on the 
island's southern tip, has one of the 
popular playgrounds in New York. 

“TriBeCa is a small town, Man- 
hattan style." the broker says. For 
many New Yorkers, that kind of 
ambience is worth much more than 
a spectacular view of Central Park. 


\l Sill.M I A 1 1 1 1 .4 ; MM I'.IIISW \Y\ ( HIN A TR AM I 
l-M.WY liO\<;KON(. !M>n\i:si\ 1 IA1.Y .1ALAN M.\l\YSl\ 


Knight Frank 
& Rut ley 

INTERNATIONAL 


• \F\V /L AI .AM' NHiLKIA ■ SI N< i A IM >K L • SLAIN 
S\\ LhLN - I’M m> STATES OF AMLKN A • ZIMKAIAVK • 


Oxfordshire 

Abingdon S miles. Oxford 7 mUee- London 46 rnOee. 
CPtet an ce e aptro v iiBate) 

A highly productive commercial arable and 
dairy farm on the River Thames 

Period teahouse with 4 reception rooma, 6 bedroom*. 

3 cottages. 

ifodern arable buildings including 1 ,300 tonne capacity grain stnrage. 
120 aw dairy tmft. Milk quota 687,574 litres. 
Predominantly Grade D land. 

Frontage onto the ftrvnr Thames. 

About 850 acres 

(Available as a whole or in Iota) 


Oxfordshire 

Ctrfrw A as mflaa. London 82 raha. (amrihory (BIO H mOea. 
gyigtancMapp mriina taJ 

A npiraifiii mr* 1 * 

in Grade H* listed ftormer stately home 
in a parkland setting 
Hall, doming 100m, 3 bedroom* 3 bathrooms (enewtat 
Gerag*. 

Indoor awinnmaspooL 

UnufeoBit. 

• Ceanmmial gardens of aboiat 12 acres 


,c._ ■s&r&m?. * 

•♦fit* s* -f - ■ < 'r*&: ■ • 


Cornwall 

mriM il mlVf Kmarlgfi mdM 

A traditional sporting estate with a fine manor house 
set in spectacular gardens 
Manor boose with 5 reception rooms. 7 bedrooms. 

Beautifully laid out gardens with lake. WkOad garden. 

2 lodges. M further cottages. 6 let Arms. 6 iannboewa. 
Woodland. Exciting shoot 

About 750 acres 
. . (As a whole or In lota) 

Apply: Eretar 10392) 433033 
wUxidcn 071-6298171 


Hertfordshire 

C>*inWy lnnla.9tawiasB2B^lae. AlM3Bdlae.Lentoa35mikfc 
IB iOvm iifi fj — ine til 

Asuperhly located'snxafl country estate 
A bssutifagy atoated couabryflxxwj jjw* hakfaiaww parUand. 
i - 3 (S-incipol roerptibo room*. 6 b n diuums . 

-'-i . Oiadiki .- ti i W- : Sttl« bht. 

- AvwtteAoipped1«it&miliiubiiWtisr«ijiihoi, apairofeettawo 
’A’- sttlittnjtlSfi aem. 

> J S*aera«of mefan«v* ntxn»Tv fewiUi»porting righto n w w l i olu . •. 

r-i>. "* • -•-!■»; About 2Si acres 

(Aa a whole or in lota)' 

Jbtet Agatsta: Werminftoe*, Hitehizi (0*62) 768814 . 

- ■— — -~ « — - J « — j — —■ — — — - 


fltAMWlMKW 


East Sussex 


,L' 


Ihe 6 noke. Hattlsgi S nike. TtadwidB* Wk 30ma«. Londoo 65 mOee 


A traditional country estate with a fine manor house 
dating from the 15tb century 
Graded' Uttihoaae with Cmt Hall, KhdenlkeaUi^cbapri.Sfenbar 
re c e pttmi moaae. 9bedromna.7batlMOoaM. Indoor awlmmingpooL 
Katraaea lodfe. Pub land and lake. WBn-eqmppedeo«nn«ereUl &m with 
6 badrom period Sumboow. 4 ftirther eouagn. 

280 acne of commercial and ameoity woodland, 
fbtentfa! for eaperfe phim»ii w a n d d ork » hn ot. 

About 1472 acres 

(As a whole or in M Iota) 

Apply: ThnbridgeWWk (08923 513035 

or London CT7U8S 8171 tBAUEOMSCBI 


South of France 

S e i l lana6fcma.Caane«42kinfl. Nice International Airport. TPItnaa. 
(Diatancee appnnaiaatel 

A beautiful country bonse in &e hills 
behind Cannes 

Hall, drawing m om, billiard room, winter pad summer dining rooms, 

4 bedroom eaita. Erteogtv dorar ntlr onkea with wipe criler. 
Goeat cottage. 2 BtaiToattagas. Partially renovated cottaflc. 
Swimndiig pool. tenniB court Garage, outbuildings. Olive grow. 
Vfoodland with eporting lodge. Borrnal landscaped (sudna. 
About 170 acres 

Apply: Hugo SkiUingtOn Immobiliar, Grimsud (01033) 94 43 28 63 
in aaaodatlon with Knight Rank ft Rutley, lendou 071-629 8171 

troniMMt 


% , ■' v - . - ■ 






mam 




Berkshire 

MortzmarS mflaa. Rendlng7 miles. Basingstoke 13 mllee. . 
B44 (/zz) SVt mika. (Dktaaces appradtaato) 

A fine manor boose set jin beautiful parkland 
with a magnificent 8% acre lake 

Halt 4raoeptioa roams, 2 bedroom euitH, 8 ftirther bedroomk, 
fintberbethnom. 

Xcottaeae. Gtnqtng andaotfadUimt. 

. I nk« n—ltifi.l qmrikum ■imHmi(«ii<I]i«*I.mI '• 

About 77 acres 

(Aa a whole or in 2 lots) 


m 


Apply: Hungcrfotd (0*88) 682728 
or Latte 071-829 8171 




CPWN«*U737B» 


anover Sifiiart*. London Wlli OAH 071 -d 29 S 171 












IV 


FINANCIAL TIMES WEEKEND MAY 28/MAY 29 1994 



FESTIVAL HIGHSPOTS 


It’s that festival 
feeling again 

Keen on music, literature or racing? Gerald Cadogan 
has been finding accommodation for festival goers 


The Dower House, Heythrop, Oxfordshire: handy for opera In the CotawofcJa 


Otftaa Hall, Belehamp Often, Sodbary, Suffolk: a handsome Georgian property for £375,000 


T he festival season has 
started again, in. Britain. 
Glyndebo nine's new 
opera house in East 
Sussex reopens tonight, 

mntirmrng rmtit August 25 , and tt y* 

Cardiff Bay jam festival in Wales 
runs untQ Monday. Brighton (East 
Sussex) and Perth (Tayside) finish 
tomorrow. Hay-on-Wye (Powys) and 
Malvern (Worcestershire) continue 
to next weekend. 

Festivals starting in June include: 
Aldebmgh in Suffolk (the Bgiflaimn 
Britten and Peter Pears festival, in 
its 47th year), Bournemouth (Dor- 
set) puppets at Bradford (West 
Yorkshire), pop music at Glaston- 
bury (Somerset) and opera at Gar- 
sington Manor outside Oxford. And 
so the multi-course cultural feast 
goes cm - from Edinburgh in Scot- 
land to Fishguard, in west Wales 

well intn the autumn 
Tickets and accommodatio n are 
fiie problem at many festivals. Main 
events sell out quickly and hotels 
and boarding houses are booked, 
often by the same people, year after 
year. What is the way ant? 

For one thing, you could always 
consider buying a place near your 
favourite festival. From a base in' 
mid-Sussex, for example, it Is easy 
to “do" Gtyndeboume, Brighton and 


Chichester (where Derek Jacobi has 
just been appointed artistic direc- 
tor, a post inaugurated by Laurence 
Olivier). 

Well placed for all three venues is 
Nettledown Cottage at FulMng, 
down a long form road with views 
to file South Downs. Price: £396.000 
from Humberts in Lewes (0273478 
828) and Fox in Haywards Heath 
(0444-459-966). 

Close to Glyn debourne and 
Brighton. Humberts offers an 
mnumnl and ham taome white clap- 
board bouse that looks more like 
Massachusetts than southern 
Rngland Gallybird Hall, near Bar- 
combe, has six bedrooms and costs 
£240,000. 

An intriguing house near Chi- 
chester is Jolyons at Bury. Built in 
1981 from old timbers, this Sussex 
bam was a studio home for artist 
Rudolph Sauter, a nephew of author 
John Galsworthy, and stands in the 
grounds of his unde’s house. Jack- 
son-Stops in Chichester 
(0243-786316) is selling it for 
£285.000. 

□ Cheltenham, an elegant Regency 
town on the edge of the Cotswolds, 
has three festivals. In July there is 
music while, in October, its festival 
of literature provides a welcome 
break in the dog days of the cul- 



Chartton Manor, Battiedown, Cheltenham: music, Bteraturo and horse racing to choose from 


tural year. But Qie most famous of 
the trio is the Cheltenham festival 
of horse-racing each March when 
the Gold Cup is the climax of the 
National Hunt season, run over 
fences. 

Three Queens is a smart Elizabe- 
than, Queen Anne and Victorian 


house - bertep its name - in Prest- 
bury, on the edge of Cheltenham. 
Its price is £345,000 foam Jackson- 
Stops in Cirencester (0286653334) or 
Charles Lear in Cheltenham 
(0242-222722). 

Chariton Manor in Battiedown is 
equally dose. But this one is purely 


Victorian - originally, it was called 
Simla Lodge. Price: £750,000 from 
Humberts in Cheltenham 
(0242-513439). 

□ The middle of the Cotswolds also 
offers opera-in-the-garden at Gar- 
sfogton, on the east edge of Oxford. 
It is best on a fine night, although 


the audience is in a tented stand 
and a cover can be unrolled over 
the singers. 

Knight Frank & Rufiey in Oxford 
(0865-790077) is selling the Dower 
House at nearby Heythrop; offers 
over £700,000 are sought for the six 
bedrooms (to house the party) and 
40 acres (for the horses). Another 
£80,000 buys a cottage. 

Just as convenient is Horn Farm 
at Evenlode, a good CotswoM farm- 
house with stabling and 45 acres 
(from KFR at £425,000), or Copse 
HUl Court, a converted stables and 
coach house in Upper Slaughter for 
£575,0001 

□ Bergersh Place at Witnesham, 
north of Ipswich, could prove a 
splendid base for luge parties 
bound for the music at Aldeburgh, 
or inspecting the royal Saxon burial 
ground at Sutton Hoo, followed by 
oysters and Muscadet at the Butley- 
- Oxford oysterage. For £900,000, you 
get a Regency house with. 187 acres, 
restored by the present owners. Bidr 
wells (0223641841) in Cambridge is 
the agent 

Otten Hall at Belehamp Otten, 
west of Sudbury, is handanmA Geor- 
gian and earlier, and has a pond in 
front although it is farther from 
the Suffolk coast The price (from 
BldweRs) is £375fi00. 


Kelsale Manor near Saxrmw- 
dham. a I6th/17th century house in 
the shape of a square bracket, is 
also convenient for Aldeburgh. 
Along with 1<L5 acres, Savflls in Ips- 
wich <0flW26191) is asking £460,000. 

□ Salisbury has a festival in Sep- 
tember that deserves to be known 
better. 

A good bass to the town is 48 St 
Aim's Street, a Georgian house near 
the cathedral and close (where 
- many events happen). Savills In 
Salisbury (OT22-82Q422) offers It for 
£230*000. 

To live outside and come in for 
the events, consider renting a flat In 
Wardonr Castle, near Tisbury, one 
of England's handsomest PaUariian 
mansions. Built by James Paine 
between 1770 and 1775- it was used 
until recently by the defunct Cran- 
borae Chase school for girls. 

Smart apartments, restored with 
great care by Nigel Tuersley, are on 
offer for £X,600-£1,800 a month 
through John Dl Wood in Basing- 
stoke (0256-398 004). 

□ For Edinburgh, a flat looks the 
best idea. Use It yourself at festival 
tinw> and let it during the academic 
year to fire students who throng the 
city. The place to look is the Edin- 
burgh .Solicitors’ Property Centre 
(031-2263891). 


PERIOD PIECES 


A ‘back to basics’ policy for your home 

Need to restore an old house? In search of old bricks, tiles, flagstones or hearths? James Fisher has the answers 


A rchitectural salvage is 
a lucrative business. 
The practice is not 
new. Builders 
throughout time have 
reclaimed old materials to re-use 
them. This makes sense because it 
saves money - or at least It used to. 
Now we are alert to the value of 
preservation - so it makes better 
sense to save the salvaged artefacts 
and sell them to home-owners who 
will pay a good price for something 
authentic. It is a "hack to basics” 
policy of which almost everyone 
would approve. 

Prices do vary, but they are gen- 
erally high - the idea befog that if 
you want the real thing, you must 
be prepared to pay for it There are 
also strict laws relating to architec- 
tural salvaging. 

The listing of a building not only 
protects it from structural change 
or demolition, but also prevents the 
removal of its fixtures and fitti n g s 
without consent So the older the 


required object the less likely it is 
that it will appear on the market - 
and the higher the price if it does. 
But it is always worth shopping 
around and for some rare fittings it 
is very necessary. 

When Drummond Shaw, a former 
City commodities broker, moved to 
a Georgian house which needed res- 
toration, he wanted to do the job 
properly. But he had problems fold- 
ing what be needed locally in the 
Guildford area of Surrey. After he 
had restored his house, he recog- 
nised with entrepreneurial Insight, 
a business opportunity. Five years 
ago he set up Drummonds of Brarn- 
ley on an old farm to cater for the 
needs of others with property to 
restore. His colleague. Major Tony 
Swayne, claims expansively that 
the company has just about every- 
thing anyone could need for renova- 
tions and covers domestic property 
from the Tudor period onwards. 

Where necessary, Drummonds 
will undertake to find particular 



items that people want With an 
estimated 70 per cent of the stock 
befog bought in, Swayne admits (he 
company has to be very careful 
what it buys. It also has builders 
who are skilled in the use of tradi- 
tional materials and who can be 
employed by customers. In some 
cases, the way fixtures are installed 
c an be as important as their authen- 
ticity. 

Id addition, Th- nrnn m iiris offe rs an 
unusual specialist service. For 
about £900, the company wfll des- 
patch your chipped and stained 
bath to Eastern Europe and return 
it sparkling with six fresh coats of 
vitreous enamel and a 56-year guar- 
antee. The price varies according to 
weight and size. If, however, a new 
old bath appeals, Drummonds has 
some to offer, including one from 
the Earl of Derby. 

Another company in the salvage 
business is Dorset Reclamation, of 
Bere Regis, which is run by Tessa 
Pearce. Her sources include hospi- 
tals, schools and, occasionally, dan- 
gerous structures that are being 
demolished. One of her recent 
acquisitions was a set of Georgian 
doors. 

Pearce stocks all the usual gen- 
eral fixtures as well as the more 
localised staddlestones. Dorset Rec- 
lamation has a good selection of 
original flagstones, hand-made clay 
roofing tiles, oak beams, quarry 
tiles and floorboards- The company 
can deliver, and will search for spe- 
cific objects that customers want 

Because of the protective legisla- 
tion, certain older fixtures and fit- 
tings, such as lead guttering, are no 
longer readily available. So if you 
want a match, the only option is to 


have th** fitting — which can 
be expensive. Original bricks can be 
bought for houses under 200 years 
old. 

Lazdan builders’ merchants, in 
east London, currently has a stock 
of bricks reclaimed from demol- 
ished buildings. Very old bricks can 
be bought but (hey are difficult to 
find in significant quantities- Again, 
the alternative is to have a special- 
ist firm make up a matching prod- 
uct. A company specialising in 
copying bricks is W T i-amh of Has- 
lemere, Surrey. 

People in the business are natu- 
rally sensitive about the issue of 
provenance. But it can be advanta- 
geous when authenticity is assured. 
“Provenance is important and adds 
to value," says Les Smith, sales 
manager of the London Architec- 
tural Salvage and Supply Company. 
“A bathroom from the Savoy, for 
instance. Is not just any old bath- 
room." This provides an extra 
incentive, if It were needed, to deal 
in goods with provenance. 

LASS Co has been in business for 
20 years. The company says it 
houses one of the UK's largest 
stocks of architectural antiques and 
reclaimed fixtures and fittings in its 
warehouse, in a church just north 
of the City of London. Other compa- 
nies claim to have the largest sup- 
ply. 

LASSCo clears buildings that are 
due to be demolished or refur- 
bished. Its current stock of radia- 
tors comes from County Hall, Lon- 
don, the former headquarters of the 
Greater Loudon Council, which is 
being converted into a hoteL There 
are fire surrounds a-plenty, stair 
rods, doors, weather vanes and. 



appropriately for the surroundings, 
church pews and the occasional lec- 
tern. The company also sells origi- 
nal brass door handles and key- 
holes, and it has an extensive range 
of Edwardian taps and shower mrifo 
which can be ordered from a cata- 
logue. 

LASSCo also has some very 
tmmnial items, hiehiding a panelled 
deco interior taken from a dub and 
priced at £26£00. The company has 


also recently acquired the complete 
neo-classical entrance that once 
adorned the headquarters of the 
National Fanners' Union. Smith is 
open to offers on this, but expects it 
to go oateUe the UK- 
Architectural Heritage, in Chel- 
tenham, has a large stock of 19th 
century oak, mahagony and pine 
panelling. The company has a range 
of original fireplaces and also 
mak e s stone fireplaces to order 


because it is often difficult to find 
one to fit the available space. 

■ Information, : Drummonds of 
Bromley, 0483-8987G6; Dorset Recla- 
mation, 0929-47220$ LASSCo, 071-739 
0448; Architectural Heritage, 
0386-584414: Lazdan, 081-981*632. 
Other jpecfo&tt include: Andy 
Thornton Architectural Antiques 
Ltd, 0422- 377314: The Bouse Hospi- 
tal, Q71-223 3179; Wateot Reclama- 
tion, 0225-444404. 








FINANCIAL TIMES WEEKEND MAY 28/MAY 29 1994 




MULLUCKS 

\X bl.f.S & ASSOCIATE 


NORTH- WI 

GnuOmmavlmOa - Bh*op*$t*&ntl 

1ST ESSEX 

2 mUa-Sbauumt Airport & StatimS mOtt 

It * 1 

- 

A part 16ra Century 
Country House 

WITH JUVHtrBOWf ACE, 

TROtrr LAKE AND PAODOCK 
Ahhwxwmmy 5 ACHES. 

4 receptions, kitchen with AGA, 

7 beds, 2 batfa. garaging, indoor 
pool temris/couit, i^jcn views. 

OIR £395,000 

THE HADHAMS, HERTS 

17TH CENTURY VILLAGE HOUSE 

WITH COACH HOUSE AND LARGE GARDEN 

3 reap, kit/breakfast, study, 6 beds. 2 baths, stsdio/games annex. 


OIR 085,000 


10 Water Lane, Bishops Stokeford, Herts Cm23 2JZ : 
TEL: 0279 755400 Fax: 0279757377 
The London Office Tel: 071 439 3900 


Usk Valljey, Nr. Abergavenny 
Brecon Beacons National Park 
£280,060 Freehold 



• W'V & 


A Vtaodan feniily residence commanding superb views over the Usk Villey towink 
the Black Moonuins. TTie bcmlfally presented accommodation hxjudes: 
E n tr an ce hall. DiMwiagroom; Custom built kitchen; CongovKwy; 

60S Master Suite comprising Bedroom, Bathroom Jt Dressing room; 

3 farther bedrooms A bathroom / fitness room; Vaulted cellar; 

Set wninn about I acre of garden*. 

Keith MOes JO,Mr AGENTS uilaeYoung 
& Co SCO 

2 High Street, Ctiekfaowell 23 Nevil Sc, Abergavenny 

TeL 0873 810213 fto. 0873 811434 TeL 0873 857411 Fax. 0873 853123 


PAUL JACKSON 


AUCTIONEERS AND ESTATE AGENTS 


NEW FOREST - 



An Important well maintained snail OMotxy ante eacampaasiiig a spacious 
Cborury House, an entrance lodge and aamwiue outbuildings, att lo 29 aaes trf 
gardens, paitloifd and paddocks. The properly enjoys far reaching sotab-westeriy 
views over tin landscaped gardens lo the BoHra Valley. 

Five receptions rooms. Kbcben/breikEtst room and fall domestic offices. 

Seven bedrooms, four bathrooms and aetf-rentaiatd flat 
Tatohcdroomcd Entrance Lodge. tropic ynxging. tennis cggrt, 3 qmgrfi comt. 
studio, outbafliflngs and bams, lands cap e d pnden»,Fai>dand.woodlanrl and paddoefca. 
Bor Sale Freehold 
Comacc Paul Jackson 

14 Quay Hill, Lynungton, Hampshire (0590J 674411 


NORTH EAST HERTFORDSHIRE 


SUPERB COUNTR? HOUSE 

s it u ate d in lovely surroundings. 
Reception Hall, 4 reception rooms, 
kitchen! breakfast room, 

7 bedrooms, dmsatgroom, 

3 bathrooms, self-contained 
3 bednomed flat Ganges, Bam, 
Outbuildings. Swimming pool, 
Gardena, Moat, orchard, 
paddocks, parkland - 16.4 acres. 


Substantial otfare reply toe Bar BMQZ. 
Financial Tinea, London SE1 SQL 


j ; v* 4 ' . * ' 



^Wood 


CAMBRIDGE 

25 mOes Oty Centre 
Detached Connery Residence 
Grade Q Listed 
Whh annex 

Reception hall. 20 r e ception roong. fwo 
bedrooms, ntfflty, five room 

amen with nsnai oTfoy, ombmldingB. 
ham. glasshouse. L5 aaex. Option for 
extra land. Offers Invited 
Tot 0023301416 

47 Regent Sweet, Cambridge. CB2 1AB. 



Oxford 


Period cottage in secluded location 
3/4 bedrooms, 

2/3 reception rooms, garaging, 
garden 2/3rds acre. 

New Forest 2L5 miles- 

NKBOLAS ZORABESTATE AGENTS 
■ U MARKET PLACE, ROMSEI" 

6794 511911 






Rare FrreboU of one of the finest 
Regency town houses in Oxford 
Conservation area. 

(3 tains walk to Dragon School) 
Best offer in excess 
of eiSOflOO secures. 
Contact: The Estate Office 
POBtrSLOdHSOXtCSZ 
Tel/Fax: 0865 514 244 


Ham ptc )\s 


WILTSHIRE - BLUNSDON 
Swindon 5 miles 
A 3 stoity vfflag^ property -with 
attractive vtewa. 2 reception rooms. 
4 bedrooms, 2 bathrooms. Garage. 
Gardens. mS^OO - 
Swindon office. Tel: (0793) 617377 


BATH/ LONDON 

PART EXCHANGE 
2 bed, 2 bath, horary pendtouse. 
Central Bath. P/ex, for 2 btxL flat 
mCheteea/SoothKea. 
£1/1SDJOOO price range, 
or rent swap, 

CaB 0373 833454 


SWCMBffD0ESt*« Large tandyhana. 

mMMny * rsH RnkOv l^ndort (City) 

StsnsMd ap (30 n*ni, OMaAA * I Isaini*. 
Ftaohr Box 80401, Hnanclal Tinea, One 
SS-*ttld^u«lanSei«. 

SURREY - COBHAM/OXSHOTT Unhr 
£2D(1000 l A 5 badtxan, 2 befrmom raodam 
■tiiaijiotl home bacttig onto wootflantL 
SSSaSSoOfi ESTATE AG12MTB 


COUNTRY PROPERTY 


RICHARD 

ETHERINGTON 


& Company 


West Sussex 




ifr3T> _ 




A valuable farm and country estate 
17tb-centuiy farmhouse, modern bungalow and four cottages 
Traditional bams and modem range of buildings. 
Amenity and sporting potential. 

Frontage to the River Arun. 

450 acres in one block. 

Sole agents 

Tel 0798 431U Fax 0798 44400 
New Street, PetworthWest Sussex 


fif/here would you like your 

second home? 


Lakeside.. 

vS Idyllic Cotswold setting man 1 1,000 acre 
water park &.AU-weather tennis courts 
SSS Choice of two golf courses '‘Sailing and 
Windsurfing IS Private coaisc/trout fishing 
& Horse riding 

Price £73,900 00285 862288 



_Golfside_ 



12 Located on a private 18 hole course in a 
200 acre Victorian estate & FREE goff fbr two 
fbrfff e MPLUS Country Club membership 
for a JnmQy of Jour® Indoor pool and fitness 
studio MAS-weather tennis 
courts m25-acre trout lake 

Price £84900^0604 671471 


iffji? 





On the instructions of the National Trust 
SUFFOLK - THE ICKWORTH ESTATE 

Nr Bury St Edmunds 

A country cottage requiring some restoration 
3 reception rooms, 3 bedrooms, kjichen/break&sc room, 
bathroom. Outbuildings and large garden. 

About 0.81 acres - offers around *£150,000 leasehold 

• 0223 841842 

sroHECnoss muMPiNGTON Cambridge cbj isu 
CXUBRIOOE NORWICH IPSWICH LONDON PERTH 



or Maiinaside? 

M Overlooking Britain 5 premia’ inland marina, 
on the river Great Ouse Private moorings 
available 3 Access to over 200 miles of 
tranquil waterways Z‘ Indoor pool/ 
sauna/gymnasium . Private bar 
and brasserie 

Pike £120 J00OTT 0604 671471 


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, subject to status. 


A SECOND HOME SECOND TO NONE 



^^termark 



2 I >ol>c*n ham 
Tliorpc 


BELGRAVIA 

Kktoh Mews Soma. SWl 
An atmeffvp 4 bedraom doiriile fronted 
home in lUs cobbled mem. jns south or 
Eaton Square, Drawing room, dining 
area, kitchen. 4 beds, 2 baths, shower 
room, garage. Leasehold: 26 years 
£450,000 

Bdgravla offlee: 871 235 8888 

MAYFAIR 

Cdrzon Street, W1 
A 3 bedraom apartment in excellent 
condition stinted in the 3rd Horn of this 
small pupose belli Mock. Hall, reception 
room, [fining area, kkchetf. 3 bods, bath, 
shower room, cloaks. Porterage, lift. 
Leasehold: 52 years. £430000. 

MajfUr office 871 408 U61 

TO LET 

Hyde Park Crescent. W2 
A bright and spacious aewty refurbished 
and furnished 2 bedroom apartment 
•tatted on the 8 th floor of this well 
maintained purpose built Mock with 24 
boor porterage. Hall, recep, kitchen, 2 
dble bedrooms, 2 baths (1 en -suite), 
dressing room, lift. £475 per week (long 
let). 

Residential Lettings 071 4*8 2748 


Are you an Edinburgh 
property owner based overseas? 
... Or are you going to be? 


BruceRae recognise that p r o p er t y owners based abroad 
have different needs to those at home. In doing so, they 
take the frustration out of properly, rental and 
management by supplying useful and accurate 
information, very quickly. 

SOME OF THE SERVICES 

PROVIDED BY BBUCERAB 

• proper^ March (br sxpatziataa who wish 
tobny ma i dsntia l laupir t y In Mibb uig h. 

• Munaog of aidtahla tansnta 

• praparatioh of Ebart Aasurad Tsnaixy 
Laaaa 

• regular and timuty KnSkrmatiiui ragardhig 
mot collected and no? banhod 

• daanmiealhababNaiBranBnnd 
avaratwa property uwnara ia by fax whan 
ponribte. with the gfnurtea that any 
enquiry wffl be anawored within 24 hoanL 

SERVING THE SCOTTISH EXPAT 
To obtain a brodmre giviftK further inihrmntlon please 
Telephone; 031 220 0308 or Fax: 031 220 0440 



STAGS] 


ORKNEY ISLANDS. DETACHED PUB. 
4 Betonoms. 3 gwaga*. wortahop, alare, 
3/4 acm. Over £75,000. Tat 086S77 248 


DORSEUDEVON BORDBI Mpna Hogfi B irA 
lomaiw n^vadaui B* HSEappm 7 
•ohm gdw peddacta fi recS beda, 2 bam. 4 wb 
0 * M (AOA) M CH nbta *mh. aanaoem 
is n*E2aunao46t>22iaaiar 221060 


COT3WOLO COITAOE Suny dukabla toe. 
3 bod. 2 bath, garaging, gardens, privacy 
4m OmncMHr. Crock (OSSS) 851 03 1 

TOTNES, DEVON. LUXURV Rhemkto 
Hornet 213 hnde.C59.96Q-C91.9SQ. 
Aparmumts 09^50. The Bounans, ratnaa 
avail do king Rtver Dart. 2/3 boda from 
£88,990. Tec Westward Davaiopments 
0803 86343819621 1Z 


ss 


Humberts 


WEST SUSSEX - Talking 

Brighton 11 mties. Hassocks 8 mdcs 
(VictoriafLondon Bridge SS mins), A23IM23 3 arfes 
An attractive period cottage recently refurbished & extended 
to a high standard in an outstanding rural location 
with views to the Downs. 

Hall, 2 reception rooms, kitche a/breakfast room, 4 bedrooms, 

3 bathrooms. Garage, gardens and grounds extending to 
about 4 acres. (Further land available adjoining.) 

Guide Price Region of: £345,000 

Details: Humberts (0273) 478828 or Fox 8t Sons (0444) 459966 


EASTBOURNE'S 
Finest 
Apartments 
BERKELEY COURT 


SNOWDONIA 

NATIONAL PARK 


BEDFORD 


EAST ANGLIA 

Over 60 interesting Cottages, 
farmhouses and 
COUNTRY HOUSES 

in our full colour 
Summer magazine 
£70,000 -£800,000 
call for you free copy 
Fax: 0284 766888 


Td: 0284 769999 


Head in the 
Clouds 

or Feet on the 
Ground, 


> % 

NJ 




Superb sea views 
fmm these sumptuous 
apartments and 
penthouses overlooking 
WBmtngtan Square 
£95,000 - £275,000 
Show home open 
Thurs-Mon 11 am -5pm 
Tet 0323 640771 
Balfour Ltd. Tel 0892 544767 


WARWICKSHIRE 


Bara conversion in Homion Stone 
overlooking vfllagn green in Fenny 
Compton - M4Q5 miles, Banbuxy 
10 miles, Warwick 15 mOes, 
Stratford upon Avon 17 miles, 
London l'A horns by train, 

4/5 bedrooms. 2 bathrooms, 
doalcTDom. ntflity/sbower room, 
sitting room with fitted book 
sbolves and nraltivicw stove, 
kiichen/dining room with double i 
eye level ovens + ceramic hob, 
double stainless steel sink, filled 
cupboards, central heating + double 
glazing, floored attic with loft 
ladder. Car port Mature garden. 
Stone workshop with 800 gallon 
oil tank. £220,000 


Tel: 0295 770577 after 6p.m. 


Ele^mt Victorian restated Country 
house time reception room*, eight 
bedrooms, three bathrooms. Eighteenth 
Century throe bedroom cottage bonia 
with ftdl planning permission Superb 
v i ews, pastime, woodland and Bahin£ 
About 105 acres 
Region £395X00 

Tet 076676-2472 Fax: 081-789-U123 


2 bedroomed flat, ideally 
located In prime residential area 
dose to Convention Centre and 

Symphony Hall - single garage. 

Chca £65,000 freehold 
Fax: 021 353 4461- Ref MJF 


JOHN D WOOD & CO. 




ISLE OF WIGHT, 
WEST COWES 


A handsome Grade Q* 18th Century 
bouse in the High Sneer. Sea views 
from ibe upper (loop. Co n side ra ble 
pntwiri n l with 12 rooms, balcony. 36* 
deep garage, about 3,000 sq. ft 
Guide Price £375,000 
Jalm Saks Agcms 

How Rhodes Dickson (0S*J) SZ1144 
Jehu D Wead A Cb. fflSHI 477233 



Warford park - Cheshire 

J etting off to far-flung places or walking In The Peaks, 
Warford Park could be the perfecr retirement base. 

Set in parkland dose to Knulsfotd and within easy reach of 
Manchester Alrpon, our new flagship village offers a choice 
of 1 , 2 and 3 bedroom apartments and cottages, some of 
which arc available far all age groups. It also boasts Its own 
leisure chib, and planned facilities will Include a restaurant, 
bowling green and tennhs courts. 

Reservations are also now being taken from plans (or our 
newest developments In the West Country. 

The Parks - Kcynsham 

Located dose to the High Street, and overlooking parkland 
and gsudens. The Parks wilt have [he high level of service 
and quality all our retirement home buyers how come to 
expect. 

For Information on these or any of our developments at 
Broadway, Braddey, Bournemouth. Tllehuisc. CHney. Oxford. 
Paignton or Rochdale FREEFONE 0800 5Z6386 or ii-rUcto: 
Pegasus Retirement Homes pk, 23a High Street South, 


rmarm * i 


a o ,u r ,s r o r r i : r i r i m / : 



Miller \ 


Across Cornwall 

A cotour tfoidB to propwttos for stou 
must of ttra Tumor ospocMIy 
o utoeffid for tfiolr porttc t it arty 


MHtor and Company, 
Corawsdrs Prom tor Estate Aganey, 
Has Edtioc noBrtto so mpast ten 
Htmka Soma, Tim. nt (0872) T42U 


A HISTORY LESSON 

What do Dick Turpin, Oliver Cromwell and General Gordon have in common? 
Hi«y aro all wmociated with sites cboeen far our retirement schemou. At 
English Courtyard, yen'll be ou famous anil. But if you thought our historical 
iutereat ended there, you'd be mistaken. Restoration and conversion work has 
been carried out on a number of listed buildings, the oldest of which dales from 
the 14th Century. While maintaining the character of such buildings, English 
Courtyard ensures Uut the highest standards of workmanship ore maintained, 
from the energy efficient heating system, to the kitchen layout designed for 
ttwmram convsnioncH> 

Prims from £95,000 to £235.000. 

.To find out more about our properties in 
Middx. Somerset, WHta, Bucks, On» and Kret, please ring os far a brochure. 1 
The Bn g il a h Courtyard Association 
8 Holland Street, London WB 4LT 


U. V..; Iml-m.i 



Wyfflc 4 bednn. semi .do* house 
overiooklng open coundysicie by 
2 gotf courses. ExceHenJ: scbool in 
dose pnnlmity. 2 batfttros & 
jprage. Circa £i29^00 freehold 


SMITH WOOLLET 

CHARTERED* SUHVEV0BS 


JBAZELLS BULL, 
BweM, Nt Ssedy. Beds 


-WepboaerCCZJ) 


P es — G o 1 d sb orough ==== = 

ESTATES 

You can feel comfortable 
Because you know she is. 



0026 7769 S 3 
VERNON KNIGHT ASSOCIATES 


HAYMAN-JOVCE 




Btockfcy 

fotcresthig detadied v3htge 
bouse in sbettered valley 
Architect designed 

3 Beds 2 Bath 
0608-651188 


Imagine the convenience of 
having a Cook, Handyman and 
Nurse on call whenever they're 
needed. That's exactly what 
Golds boro ugh Close Care 
Apartments offer - a quality care 
service to be called on, as and 
when it’s needed - 24 hours a 
day. 

But that's only half the 
story... because this peace of 
mind is available in the 
Outstanding surroundings of 
private apartments set in 
prestigious Kensington, 
faghgaMrand BhcMieaih. 


Our unique 'close care' From the elegance of the 
service rune reassuringly ‘ surroundings to the practical 


alongside day-to-day life - 
offering help with everything 
from small domestic chores to 
complete nursing care. We also 
respect everyone's 
independence. We simply put 
our 10 years experience to its 
best use, ana provide a 


attention u> detail, everything is 
there to make life more 
comfortable. 

The more you know, "the 
easier it win be to make the right 
dednon, so please contact Tara 
Yamini on 071-792 9995 for 
half the best use, and provide a details of our apartments in 
s peace of professional, friendly and - Kensington and Highgate, or 
e in the above all -caring service. GDI Lato on 081-858 6554 for 

ladings of To ensure Uie fullest, best details of our apartments in 
is set in possible lifestyle, the highest Blackhcath, or complete and 
sington, standards are maintained in return the FRLEPOST coupon 
rath. every area of our apanmems. below. 

THE CLOSE CASE AND RETIREMENT HOUSING SPECIALISTS 





4k- • • 

* " J PteXK n»d m further rfemib no jour r~| 

* t 3 o»e Qk VpanturtUi la Kretiogm 


inc further <tctx0»oo ywur j”| 
7 tSoieGuvAputmaaeiin lUgfagate 


• r flax xend me timber desrib on jour 
^ Ohm Cure Apanmam i" BtacUwub 


Mr (Mr/MrVMi) 
A*lre- 


InUd . Suimane 


Pli'ASE RETURN TO: 

FREEPOST. 

12 tadbroko TctTuce, 
txMHlon W1 1 3PG 



































SCHOOL CATCHMENT AREAS 



The Royal Gram ma r School, tfigh Wycombe, the country's top state boys’ school last yean head teachers at gra m mar schools report that par ent s move to the area to give their chfldren what they hope wfl be a batter education 


Are all top schools in top-class areas'} 


T he Financial Times* 
studies of state educa- 
tion over the last two 
years have discovered a 
new phenomenon - 
“education by mortgage”. Put sim- 
ply, when tiie FT attempted to 
assess schools’ academic strength, 
it found that the good schools 
tended to be in areas where house 
prices were highest 
In 1992. our survey of A-Ievel 
results found that the two top per- 
forming counties in the state sector 
- Hertfordshire and Berkshire - 
had house prices respectively 45 
and 51 per cent above the national 
average. 

A look at the top achieving com- 
prehensive schools again suggested 
a strong fink with wealthy locali- 
ties, and high house prices. The 
highest placed was Hasmonean 
High, serving the Jewish commu- 
nity in Hendon, north London, fol- 
lowed by CherweQ, which includes 
north Oxford - home of many uni- 
versity lecturers - in its catchment 
area. 


An initial reaction is that this is a 
social phpnnmpnnTj - wealthy par- 
ents fond to live i y»a r to other 
and lavish extra support on their 
childr en. They then tend to perform 
better than the average regardless 
of the q ualit y of the schools' teach- 
ing staff. Hence the “best” schools 
are in the most expensive areas. 

But there is evidence that this 
also works in reverse. Anxious par- 
ents try to find out where the best 
schools are and then pay whatever 
is necessary to live within the right 
ratrhmpnt area. Rurpnt giw wnirnmt 
education measures have allowed 
more choice, and the so-caUed 
“Greenwich judgment” established 
that parents could send their chil- 
dren to school across borough or 
county boundaries, but it is still 
best for them to live within easy 
reach of a preferred school 

League tables, which neither 
newspapers nor the government can 
resist publishing, and spiralling 
independent school fees have also 
encouraged parents to shop around 
for state schools. That means mov- 


ing to the “right" area. 

Buckinghamshire provides a 
strong example. It has retained a 
traditional “ g r ammar school” sys- 
tem , and pupils are selected on the 
basis of competitive examinations. 
Multi-national companies now te n d 
to steer executives relocating in 
Britain towards the county because 


quently move to the area just to get 
a ffamrp of the good, ffrpap educa- 
tion. Estate agents routinely entice 
potential buyers with the town’s 
schools, and expect to extract extra 
value for it But q uantif ying it is 
more of a problem. 

Similar trends are at work in 
Greater London, where the quality 


easily be young couples or single 
professionals who won’t be phased 
by a poor catchment areas at all. 
It’S not great mumgh to 
the value of someone’s home.” 

Bexley, in south-east London, has, 
likp R uriringhamKhin e- held on to 
grammar schools, ihat, according 
to David Blake, director of corpo- 


Can you put a value on the extra price you must pay for a 
house in a good schools catchment area, asks John Anthers 


of its schools’ strong reputation. 

This thm becomes a virtuous cir- 
cle. Head teachers at grammar 
schools in High Wycombe - includ- 
ing the Royal Grammar School, 
which was the country's top state 
boys’ school last year, according to 
the FT’S survey - all report that 
parents move to the area just to 
give their children what they hope 
will be a better education. 

David Levin, the school's head- 
master, ieports that parents fre- 


of schools is reputedly more vari- 
able. The effect on values is also 
variable. 

Paul Webb, of the estate agent 
Barnard Marcos's Richmond office, 
in south-west London, says the bor- 
ough’s popular schools have a big 
impact an buyi ng intentions. Neigh- 
bouring Hounslow’s schools do not 
have as strong a reputation, and 
many parents “simply will not look 
at schools in Hounslow”. 

But he adds: “There will just as 


rate affairs for the Woolwich build- 
ing society, means that “a lot of 
people choose to move into Bexley 
and it has an effect on certain local- 
ities within the borough. It’s not as 
important a factor as it used to be 
since the Greenwich judgment, but 
there was a time when estate agents 
would actually list schools on their 
particulars and identify them." 

But Blake’s final judgment is 
unequivocal: “There’s a very defi- 
nite connection between where peo- 


ple choose to live which obviously 
has an effect on values and where 
state schools are placed. Tm sure 
parents are prepared to pay extra to 
live in a good school’s catchment 
area.” 

In north London, schools can be 
even more variable, and Barnard 
Marcus’s Barnet office reports that 
parents frequently lay down a 
catchment area as a pre-condition 
when first starting their property 
ipMireiiws Junior sdiools, as well as 
the area’s numerous well-known 
secondaries, can exert this pressure. 

But again, putting a mice on a 
school is tough. According to Paul 
Grover, of Barnard Marcus: “There 
is definitely an effect in north. Lon- 
don. But when it comes down to the 
price tfa very difficult to fix the 
difference.” 

He thinks that catchment areas 
unpart on demand but not directly 
on prices. When the market dips, 
this can be a big advantage. 

It remains very questionable 
whether catchment areas have such 
an impact on property values that 


house-hunters should take them 
into aocorint if thay-do not have 
school-age children themselves. 

According to Gary Marsh, who 
researches the residential properly 
market fca - Halifax building society: 
“Quality of schools varies through 
time as weD. Anecdotally there’s a 
tot of evidence for this from estate 
agents, hot it’s not an easy effect to 
pick up on any data-base.” 

So ratrhmmt area effects, when 
they occur, are difficult to quantify, 
and might prove transitory-' It only 
takas the retireme nt of a head, or 
the opening of a new city technol- 
ogy coinage a mfle away, to destroy 
a school’s local pufi. Marsh thinks it 
would be ’bnistoeding” to put any 
value. on v &e extra price you must 
pay for a house In a good school’s 
catchment area. 

The effect exists. Parents who! 
shudder at independent school foes 
would he crazy not to take it into 
account Bat do not imagine that by . 
buying a house in a sought-after 
catchment area you are acquiring a 
guaranteed saleable asset 


COUNTRY PROPERTY 


INTERNATIONAL PROPERTY 


PHASE TWO - ROMNEY GRANGE. WATERHEAD 


Nr LAKE WINDERMERE 

ONLY TWO REMAINING 





THE FINAL PHASE OF THJS OEVBJOPMENT HAS NOW BEEN RELEASED 
comprising of first and second floor luxury ap pofctted Apartments. Hackney & 
Leigh have pleasure tn offering tor sale S Apa rt me n t s . Romney Grange is 
situated at Wstertwad with views faring south and west to Late Windermere and 
surrouvSng Fefls. Convenient tor 8onans Park with AmWeskte vffiage being 
within one trite. Al apartments twieflt two bedrooms, filly tied baflwoonVshowar 
room (one being an suite), fitted Kflchen with a good specification of a ppliances, 
double glazing and video entry security. Car parking Is allocated to each 
a p a rtment with BtfcfittanalperMnfl tor visitors. The com m a U iandscaped gardens 
extend to approximately 2 acres c om m an din g magngicent views. Viewing is tttfty 
recommended. 

AM718 Prices from £90.000 to Cl 1 5£00 


FOr brochure contact 
Messrs HACKNEY & LBGH 
Rydal Road, Amtrieside, Cumbria LA22 SAW 
Tel 05394 32800 Fax 05394 338S3 



TORQUAY, DEVON 


2 & 3 BEDROOM HOMES IN A SUPERB BEACH LOCATION 


PRICES FROM 


p|\£ 72.495 W 


rf\ 3 esfiP 

9 v/ THIS #KC 


THIS 'EXCLUSIVE 
DEVELOPMENT OFFERS 

• Leisure complex and swimming pool 

• Twenty-nine acres of private paridandX SPECIAL 

• 7Wp all weather tsnnir rtrurrr _ | HOTEL BREAK 

• Children' splay area Take advantage of our 

• Seahorse Pub & Terrace Bar \ special offer and stay at a 

•Sauna and spa pool i luxury hotel at spedaBf 

• Magnificent sandy beach and south \ negotiated rates, 

fixing views 



Set ia spe ctacu la r Lagans gardens. 
Superb seas views, bouse and gardens 
des i gned tor elegant living with 
i nwn t r wao c , befit Co hig h est 
. period dumasy pieces 
i of fiae decatb. 3 reception 
rooms. 3 bedrooms all with ea soils 
bathrooms. Sauna + gymnasium. 
BflUards roomMth bedroom 3 car 
garage with lift to various Soon. 
Reduced from £1,20(1900 to offers around £751X000. 


Tab 0803 292470 or 0803212531 


FOR FULLDETAILS PHONE 0326 250000 


PlLKINGTON 



SMITHS GORE 


© PlUUNGTON HOMES 0744 692940 

THE COURT. ALEXANDRA PARK, PRESC0T ROAD. ST HELENS. WA10 3TT. 


ABERDEENSHIRE - OYNE, BY INSCH 

HISTORIC RESIDENTIAL / AGRICULTURAL. ESTATE 
Comprising Westhal! Castle, West Lodge, Wesrhall 
Farmhouse, Cottage, Flat and Bungalow. Leisure complex 
including indoor swimming pool, sauna, teams court. 
Substantial farm steading. Productive arable farming 
operation let on a limited partnership. 

Pheasant shoot and duck flighting. 

ABOUT 420 ACRES 


FORF-VR i0307) 46S080 


NORTHAMPTONSHIRE 
Konfaenpm Sadia Dnaay7mfle> 
Ml p36J ifiab 
WHJTECATES 
UPPER BOTFORD 


Vkudu Qjaab? Bboc 
Vfift OrtmafiBB Aat IMaeuaptM Wan 
OwTfeSanwmSng Cbaanpide 
Hmsh tUI. 3 Heap ton.6 Beta*. 

ZBatamOaKmTCH 
RanerCoacb Unas And Sable node 
WtoPtaaaEqgPeankiiftnRr 
CococaiMTo ASqme DreOao 
Foal. Wed Guta 
Aim! U2 tea 
BOVKUNS & HARRISON 
Ttt 0788360 321 Har 0788 540237 
7-11 ASxzt Sorer. Rngby CV21 2RX 


Hamptons 


INVERNESS-SHIRE 

KINGUSSIE 

A traditional Highland Iran with 
farmhouse and cottages, providing 

narfi tl tiffing jr r renuwbrinn mil 

with fanner farm buildugs with 

plannin g ucimitaOII brOUIVUlIuu 

huo 11 fluffier letting nulls. About 
24 sns of pasture and woodland. 
Excess 014000 

Tbr Estate Office, Batavti, 
Kjapmie, lumuui shire 

T«L (flS4f)M2fl2fl 
fax: (6548) 662021 


Ma.lla.ms 


THE CHARM OF BE RFORD 
THE LUXURY OF MODERN LIU 


OXFORDSHIRE 

Tayntan 

Burford 1 mile, Orferd 19 rales 
Tr aditi ona l Cotswold village dose to 
Burford, A darin g ui sbed stone home 
set in s lovely garden with the 
Coombe brook on the western 
boundary. Entrance lobby, huge haQ, 
sirring room, garden sitting room 
study, diningroom doakxoom, 
kitchen, utility, breakfast room, 
storeroom garden lobby. 

4 bedrooms, 2 co-suite bathrooms, 
3rd bathroom Detailed Formal 
gardens and grounds about 1 acre. 
Garaging for 2 cam. LPG bearing. 
Offers around £345,000 Freehold 
SOLE AGENTS 
Td: 0993 822666 
Fax: 0993 823621 


KIRKCUDBRIGHTSHIRE 

CHAFMANTON, CASTLE DOUGLAS 


>, k - r 


--U 


Period country bouse, 
superb rural location. 

3 receptions. 5 bedrooms. 
2 bathrooms. 1 acre garden. 


AUSTINS SOLICITORS 
Tel/Fax: 0556 503126 

86 King Sued. Ctode Douglas DG71AD 



Jackson-Stops & McCabe 

IRELAND 


OUR 1994 CATALOGUE OF COUNTRY 
PROPERTY CONTAINING CASTLES, STUD 
FARMS, LANDED ESTATES, COUNTRY HOUSES 
WITH LAND BOTH BIG AND SMALL IS 
AVAILABLE. . 


Please write, phone or fox for your free copy NOW 
Jacksoit-Stops & McCabe/ 51 Dawson Street 
Dublin 2. 


Telephone: (0103531) 6771177. Fax: (0103531) 6715156 


Rf-< \Kl 


s.; 




The Cwnpobeflo Residence -FOR SALE 
by private treay-m top i is t rirtni a l area of 
this beandfta) resort nr Deaia. A gnfag 
concern wfth lovely, tranquil pahnecHrec’d 
gatdere containing owner's villa 

and fidly equipped separate apmmem 
bnOdiqg (5 Aprs* large terraced poof, 
BBQ. BaceBesC inoonewiib poastoOkiet 

far eapmeion. Invrennmf amttar amt 
csriy Miisde. Pesetas 60 mHQaa. 

Coloured brocbureendtaUe. 
Owner +31 2U3-16799 pres. No Agents > 


BERMUDA 

\ ri « * ( lu 1 r U c rid 


fa an sfrflic jeatog owriookk^ the Windnnh 
Vafley m Bufbni Satan an buiUing jut 1 5 tunoy 

■Imrhwt m rraifainwal l~imU 

bch is (noted to rite highea aaotfard rod indude 
a hoKcfoodeoi features; 

"Lonogr "DUngKoom •Lunar Bned fid*" 
*Ut&l Rmn 'Stetioabetfaxm «En fem 
•Lank^cd Gasfcni ■Gaori Hearing ■Datie Caage 

£182,000 to £236,000 



SHOWHOMES OPEN 
WINDRUSH, BURFORD, OXFORDSHIRE 

Orcharel Rise, off Windnnh Close, Burford. Tel: (0993) 823929 
Open Daily 1 laro-6pm. Exc. T lies and Weds. 



BORDERS, HAWICK 


Secluded country retreat in 
heart of forest. 2 recep, 

3 bedrms. Outbuildings. 
Trout pond. Abundance of 
wildlife. About 3 acres. 


SMITHS GORE 

Edinburgh 031 SSS 1200 


Hum hei rs 


W’est Country 
House Search 


SOMERSET 

Taunton 6 miles. 
Renovated Georgian Manor. 
Village position - Quanta* Hits, 
in acres. 6 rsc. 

5 beds, 3 bathe. Courtyard 
with stabilng/garaging. 
Victorian walled garden. 
PRICE GUIDE -£395^00 
Sole Agents: Raf:Ti4i 
Tel: (0823) 288484 


FINE RESIDENTIAL 
PROPERTIES FOR SALE. 


Omckwrininass from US $400,000 
Houses from US $2.0 MBUon 



European Living 
atifsBest 


Detached manor House 


ktetenteMiiiteM/ . 

Otab. (AJpa) Qannony Lfapar Bswrt 
Rte Prepare*: 3t JKQaqmwtei 
paddock 

EqufarwhE Sagnnt main buMng and 
dnflla ato n y axtamton wkh faxudous 


Undsqpand carpreksMi mHadW 
a sa n , buWnCfc awinyntrq 

pool Ml. outtwr warning pool 
re aW aadmtnwnaa n dac ca aao^ . 
bddbiQ br hay and stoa. 1 ridkte 
rnanfaja canaapontena to ccreprttai 


Hoar apmee 98470 aqm 

UnteB floor hmdk 40M8 ten 

StMaornapatoParlaa 
Purehaao pricre Aatt« pdoa 
Plooao eonace Orfiamaro von Unww 
Tab 00400000080-122 
Fax: OOteBBOBO B5-123 


DEVON - HOHCftMCOHE euport] period 
famhoum * vary wol tumlsftod holiday 
cottages and other a dd Wo nal , TradUcnal 
atone bulldlnga. 6 acres of 
gmteiiafpMdoets h hidden vdey. fisto* 
pcfenUeL Ofiera kntod arewrd £300,000. 
flat 3S73B2.Meraon 0837 S4Q60 


ISTPIERPOINT, SUSSEX, 3 bans 
n conwre tor us w ua lon. pair of 8da 
ttagaa. Auction 29th Juna In 3 lots. 
Doid Dim 0273 83MB1. 


COTSWOLOS, SVREFORO. 
(Andomraford MO one utile) A grade 0 
-UsUd- potted Gatmokf Realdanc*. 
3 Racaption Hoara, taiga KSchwSDkrog 
Room, 7 Bedrooms, mature Grounds. 
C33QJQ0Q. Taylor 5 HNter, Bowionon- 
tho-Water (CHA) Tel: 0451-820913 
Ftac 0451 880818 


COACH HOUSE & BOARDING KENNELS 

EDINBURGH, SCOTLAND 


OHARMTNG 1701 STOME HOO» 
er^qylog finest vtens aver 
Edinburgh & Forth eatuiy. 

Mature gardens. Suhnianttai outhulklliigp. 
Longest, business with 
■40 aupplcr dog kennefa to reception 
cfllce/shop - Income £35k pa. 
Imm a c ulate order, o/o £280.000 



ALEX MORRISON Sr CO WS 
jl t Uf.DEFUC K STREET. EDINBITRC-H. Tel 031 226 6000 


C.O.T. OPPORTUNITY Laoa Cornwall, 3 
hdoay beach pore raaiaonatao S3E0 J00. 
R9yftenhhed. MARSHALLS 0503 2048BS 


JUTHBROE (LANCASHIRE) Idyllc 
eoimaytado tenrtwuaa wOh txAdngfl a*h 
M ptoring pacr Urei un tor fare p rotwHre 
aaretog In iffiacre tana T*t 0200 447232 


NR CHELTENHAM, OLOS. D*L 4 bad 
Rea. CH. DM Gar- 2 IS acre. vfam. 

catoxoa-rafcotmssoeo 


TUNBRIDGE WELLS Green bdt Batting tar 
thaaa tare ranaHng luutas apamarea 

dose to the cacao of thktamouaapa town. 

Prices from El 29 ^60. viawirtg by 
VpamaronL Tre 0803544787. 


SOUTH HERTPORDSH9IE pua 9 - Ml - 8 
nSret. 17» Camay Grwte 8 Listed Mow 
House in unspota coumryaide wtti 600 
acraa or tanrtand, eoitagaa and biMnss. 
For nta by prtreta tn»ty aa a Wtato or to 
two low. Faulkners-. Kings Langley 
Tat P933) 385108 FKftBZfl 280874 


Acting far buyers seeking to acquire 
Courtry Homes er Estates in 
DEVON, DORSET. SOMERSET. AVON. 
WILTSHIRE & WEST HAMPSHIRE. 


PieaM coataa Robert Heymen an 
'WexCoomry Haase Search 
3 Cheap Sl, Sherbone, Dorse DT9 3PT 
Tet [0935) S1296S Fax: 109JS) 816478. 

MobOe: [0836)563011 
tanto a taMj a iarerniiiatitaianreiili i tou. 


N. CORNWALL, NR ROCK. Few 
remaining IndMdual luxury seif catering 
vOac 2QM bods. Laeue lacMMa dose to 
beaches, golf, sailing, ate. ExcaHant 
Investment. Fun managmenL Tel: Cola 
Raymoit A VVhfla 0200 082299 Fax 0208 
Blasts 


FOR SALE 
G. D. Luxembourg 
Exdusive property on 30 arcs 
(= V* acre) turn of tbe century 
mansion entirely reiovated, 

400m* living space. 
Large courtyard, garden, 
annex, paddock etc. 

Tel: (352) 518589 
Fax:(352)367945 


GREECE Now vBu on Nano* Island In 

toateorel vtoga. Ocaan xtww, Cafl or Ftor 

us in NYC: 2121772-9320. 



Cobham, Surrey 

Small bouse with 15 acres in 
Secluded rural setting, yet easy 
access to London, 4 bedrooms, 

3 receptions, range of outbuildings 
and 2 paddocks, adjoining 
National Trust common land. 
Offers invited Guide £450.000. 
Tek 0932 864494 


COUNTRY 

RENTALS 


MARGARITA 
FREETAX ISLAND 

Direct Rgftts from Europe & Men* 
Cafobm tea. exception* preparty 
1 hectv,2poob,4guMttious«s. 

. private bucfvatequamfc 
- Unique opponmity-sacure 
tnW8tmentCalownarI39-1- 
4S0I5250 or Fat 33-T 34710001 


DEMARCHE: 
Properties for Sale 

Ouqndaon It a {snored hamlet of 
fifteen botnet ttauttoj whya fn own 
forty acre ettMawBi pwta aid M*#i* 
omta. ft a fa UwbwaifolU Mucha . 
RftamSnwatkaiMIkibaf 
the Sibflioo rpomitaha. 

Fbr Anther UbnaUaaurf 
teoefanre tafcpbmB All S» CU1. 



'-a.. 


V 


ISLE OP man ConvanaQ Bare la plcuaaOua 
rural cenJng. Close to all ainunttloa. 
Inckataip afepart Accamm 3 recap, 4 bocta, 
3 baths, finaa Wt 4to ggo. kuga mature 
Qtina. Daon Weed (0B24) 9S999S 


HERTS/ESSEX 

BORDERS 

Nr. Saffron Walden, Red brick 
Regency HALL House. 7 beds, 3 
receps, offices, two htha. cellars. 
Totally redecorated to highest 
staadMdi, New kfc, carpels, entails. 
Aga triple garage- 8 RaO 38 mins to 
Liverpool Sl Avail now. £1,700 pan. 
Tet 0799 550481 Fax: 0759 550021 



WEST SUSSEX- 

NEAR HASSOCKS 
A Recency Grade II 
Country House 
TO LET 


3 reception roams, conservatory, 
cellars. 5 bedrooms. 4 bathrooms 

Nursery wing. Staff accommodation. 

Gara ging. Outbuildings. 

Loose boxes. Gardens. 3 bedroom 
Gate Lodge. About 12 aaa. 
£5500 per month 
Contact: Mary Wheat, Head Office. 
TeiOTM938n2 


CORFU 

3 villas on * lS.OOGsqra 
with * 200m sea front in 
N.E. of island: 

ideal for 
n^developrnerTt 



^^NATKMtAL PROPERTY TRWUNC. 

A awfea mataBtoa. Raquaat 


lAite Views vna 4 both 2 baft* 

W tom 1JB tel HSTatMAWa* 










FINANCIAL TIMES WEEKEND MAY 28/MAY 29 1994 


VII 


ANDORRA AND SWITZERLAND 


Micro- state 
with a mind 
of its own 

Audrey Powell considers the advantages 
of living in the heart of the Pyrenees 


A fter 700 years of feudal 
rule the iso-square mile 
Pyrenean micro-state of 
Andorra decided last 
year that enough was 
enough Slotted between France and 
Spain it had always been ruled by its 
French and Spanish co-princes. 

Folio wing a referendum, the 
approval of a constitution wnij elec- 
tions, Andorra is now free to decide 
its own destiny, with the power of 
veto held by the co-princes elimi- 
nated. Since the hegtnrrtng of the year 
it has been studying the constitution 
and planning its future, while its pop- 
ulation waits to see what eha-ng^ sure 
instore. 

That population of 58^00 tro-hidf*? 
only 13,320 Andorrans. The principal- 
ity is also home to 28,000 Spaniards, 
7,000 Portuguese, 5,000 French, L300 
registered Britons, plus a mix of other 
natio nalities 

Its attraction is its lack of taxes. 
"No income tax, no VAT, no capital 
gains tax, no wealth tax ... ” chorus 
estate agents’ advertisements for its 
properties, ft has almost no direct tax- 
ation hut imposes a small levy on 
imported goods. 

Its prices are low and 10m tourists 
pour in each year and buy from its 
shops. Its splendid mountain scenery 
and long winter sports season bring 
their own following. 

But what now? It seems almost cer- 
tain that Andorra’s freedom from 
most forms of direct taxation wQl not 
be affected, say local people. 

"One of the most exciting proposals 
is that the principality may establish 
itself as an offshore financial centre 
and allow non-Andorran financial 
institutions to operate here," says an 
estate agent 

"The possibility of offering multina- 
tional companies licences to base 
their European operations within 
Andorra, free from corporation and 
other business taxes, is said to be 
under consideration.” 

A conference held by the Collegi 
d'Ecommustes had come out strongly 
in favour of radical changes to the 


allowable capital str u c tu re of compa- 
nies. The finflufffl minister and many 
political leaders were calling for selec- 
tive changes to the legislation which 
would allow forefgn-owned companies 
a proper framework for activities in 
the country. 

“If either or both of these proposals 
is implemented, the benefits to resi- 
dents and investors will be consider- 
able and we would anticipate rises in 
property values, both residential and 
commercial, throughout Andorra." 

Same 80 per cent of Andorran prop- 
erty is sold to foreigners and. in the 
last two years prices, which had been 
rising; have stabilised. 

British agency G A K WBhamson & 
Associates, based in Hampshire, han- 
dles property in Andorra. It says stu- 
dio flats on its books start around 
£37,000; two-bedroom apartments are 
£75,000 to £80,000 and three to four 
bedrooms, £L00,00G-phis. 

Rental returns could be 7 per cent 
to 8 per cent net on the smaller apart- 
ments. There are no restrictions on 
foreigners buying or letting a prop- 
erty in Andorra. To take full advan- 
tage of Its tax benefits yon would 
have to live there. This would mean 
hgwwnrwg a p wmanwnt raffirtowt ftftmy 

people simply stay there as "perma- 
nent tourists'*. For wwtng en t hus iasts, 
tf»» Mn wanna valley offers opportuni- 
ties to buy studios and apartments 10 
to 15 minutes’ drive from the slopes, 
from. £40,000. Or yon could pay £Lm 
for a huge chalet 

Andorra has five principal ski sta- 
tions, within an hour of other 
and at varying heights. There are 140 
pistes, testing different capabilities. 

Another British-based agency with 
Andorran property is L&D Goss, in 
Shropshire. This offers homes built by 
just one developer. La Pleta - because 
it likes the company’s style. 

Leslie Goss is not alone in being 
critical of some modem Andorran 
building: "Row upon row of multi-fit o- 
rey rectangular blocks, in which the 
size and layout of each apartment is 
identical. ” Such blocks are cheap to 
btdld but their units have a low resale 



An interior at one of LA D Goss’s La Plate propertfas-Thay are of natural stone, timber and state, fa the Catalan style 


value because there are so many from 
which to choose, he says. 

La Fleta has a different approach. It 
has been building three villages, with 
properties no more than three storeys 
high. They are of natural atnwA, tim- 
ber and slate, in the Catalan style, 
hugging the landscape, or around 
squares, with seating or a fountain. 

One such village, in Ordino, is com- 
plete and sold, but resales are avail- 
able. The second, El Tarter, near ski 
slopes, offers new property, as does 
the third, near Ordino, which Is in its 
early stages. The last two win each 
have 150 two to five-bedroom apart- 
ments, priced from £100,000 to 
£250,000. 

The official lan g ua g e is Catalan and 
Spanish and French are spoken. The 
principality is not a nremher of the 
ED. "Nor likely to be, due to the 
Andorrans' natural loathing of 
bureaucracy and antipathy to taxa- 
tion,” says one foreign resident 

Construcdo Immobfliaria 5A in La 
Massana, Andorra, offers home buy- 
ers a complete package. 

Properties are designed by its archi- 
tectural company, constructed by its 
building company and can be fur- 
nished from its furniture shop. An 
administrative section takes care of 


rental, maintenance, car hire and 
other services. 

Vfviane Girault, executive director, 
says its cheapest new property is a 
one-bedroom flat with garage space, 
at £63,000; its most expensive, is a 
large apartment at £138,500. Among 
resales she can offer an almost new 
chalet at £350,000, being sold by a 
British owner. 

Andorra has no currency of its own 
so a purchaser can pay In any cur- 
rency^ 

Girault says that people planning to 
let have three choices. With so few 
Andorrans, foreigners come to work 
in banks, shops, ski resorts and there 
is a big ripmatid tor lon g -term rentals. 
The short-term market is also buoy- 
ant particularly for properties in su- 
ing areas. 

The third choice is aparthotels. 
These, furnished and run as four-star 
hotels are usually sited near a sports 
or shopping centre. Units are sold to 
buyers who put them back into a let- 
ting pool Income from renting goes 
into the pool and expenses are taken 
out Owners can use the properties for 
itaatgnatari periods themselves, receiv- 
ing an annual payment 

Guy (kiffiths, director erf Roc Pro- 
pietats, in La Mawana, provides ser- 


vices such as valuations, organising 
powers of attorney, arrangement of 
mortgages, account opening and gen- 
eral Haisoii with an Andorran hank. 
IBs co-director Su Downham, is also 
British but married to an Andorran. 
"Our aim is to offer the widest cross- 
section of properties in the principal- 
ity,” he says. Roc’s typical prices are: 

studio/one-bedroom investment 
flats, from £30,000; two-bedrooms, 
from £60,000; three-bedrooms, from 
£85,000. Large apartments with gar- 
dens, up to £560,000, chalets from 
£199,000 to £860,000- 
At present the majority of proper- 
ties changing hands are resales, but 
new developments are continually 
rooming on stream. 

During the recession in Europe, 
Andorran property continued to sell 
because of the principality’s appeal to 
a worldwide market 
Griffiths says his agency receives 
inquiries from residents of Switzer- 
land and Monaco, who see Andorra as 
an alternative to their current base at 
significantly lower entry fees. 

■ Further information, UK: G A K 
WOhamson & Associates 0962-784999; 
L&D Goss 0694-723797. Andorra: Con- 
struedo bnmobiharia 35 2 28; Roc Pro- 
pietats 35 3 46. 


Debate over 
home curbs 


S will begin debating 
a series of government 
proposals next month 
to loosen the country’s severe 
restrictions on the acquisition 
of property by foreigners. 

The main elements In the 
proposed liberalisation are 
enlarged and more flexible 
quotas for foreigners to buy 
holiday homes and the 
elimination of restrictions on 
foreign residents in 
Switzerland, buying property 
for their own use. 

If accepted by both houses 
of parliaments, and provided 
that no one Insists that it be 
put to a referendum, the 
package could become law late 
this year or early next. 
HOwever, it Is always difficult 
to judge the mood of 
parliament or the Swiss 
electorate on this issue. 

The current restrictions, 
built around the so-called Lex 
Friedrich, were put In place 
In 1965 when the Swiss were 
anxious that every available 
Alp would be taken over for 
holiday homes by rich 
Germans and Italians. 

Since, the property boom 
in the country has collapsed 
and in some mountain holiday 
areas, especially in French 
Switzerland, hard-pressed 
local developers are pleading 
to be allowed to sell more 
holiday homes to foreigners. 

Moreover, the political 
environment surrounding 
Switzerland has changed since 
the mid-1980s. Harmonisation 
of many laws and regulations 
In ED countries has increased 
the pressure on Switzerland 
to foil into step. 

Lex Friedrich also infringes 
the spirit of Switzerland’s 
commitments under the 
General Agreement on Tariffs 
and Trade and the 
Organisation for Economic 
Cooperation and 
Development 
Substantial liberalisation 
in many areas, including 
property ownership, would 
have bear forced on the 
country if it had joined the 
European Economic Area 
(EEA), an enlarged free trade 
area. However, a slim majority 
of the Swiss people rejected 


the EEA. in a referendum in 
December, 1992. 

Undaunted, the government 
then undertook a 

liberalisation programme of 

its own, ami so for it is going 
well, although the issues 
treated to date, such as cartel 
control, do not rouse public 
sentiments in the way 
property can. The timing of 
the parliamentary debate may 
be propitious. The angry 
reaction of neighbouring 
countries to the referendum 
vote in February to outlaw 
transit lorries on Alpine 
passes from 2004 has startled 
the Swiss. Perhaps they will 
be more inclined to mollify 
their neighbours on property 
rights than they might have 
been a few months ago. 

The legal pillar of the 
liberalisation plan is the 
replacement of the criterion, 
of nationality with that of 
residence. A foreigner who 
is resident In Switzerland or 
who lived in the country in 
the past for at least five years 
would no longer face any 
restrictions on property 
purchases. People who live 
outside but who normally 
work in the country would 
no longer have to obtain 
authorisation to buy a 
secondary home. 

For those who do not meet 
these conditions, the existing 
holiday home quota scheme 
would be substantially 
loosened. The principle of a 
continually declining national 
quota would be abolished. The 
quota would rise from the 
present 1,420 per year to the 
maximum 2,000 allowed by 
Lex Friedrich. 

If a foreigner who owns a 
home sells it to another 
foreigner, that transaction 
would no longer be counted 
from the quota. Some 
foreigners bad difficulties 
getting permission to sell their 
holiday properties because 
the local authorities preferred 
to allot quota to new 
properties. Similarly, distress 
sales would be removed from 
the quota. 

Ian Rodger 
and Audrey Powell 


* F KSATiONAL PR 0PERTI 


INTERNATIONAL PROPERTY 




WSiM'E ABROAD 
lYOJ^CAN AFFORDI 

*" • Spam, Cmtus, Funoda * Outstanding 


i- — • & McUf 

:IU I \\D 




_ - V-. P 

L'i-rstf'* 5 - 
«• 5 rtS 

:-rr:^' r ' 




: 



FRANCE 


MONTE-CAJRLO 

PLEASANT STUDIO 
APARTMENT 
40 sq. m. For sale in 
luxury building with 
s wimming pool and tennis 
court, celiac, parking, 
overlooking marina. 

AAGEDI 

Td 33-92 165 959 Ra 33-93 501 942 
^7/9 Bd da MouMmMC 98000 Mourn/ 


MONACO 


Beautiful BefleEpoqucVilb 
300sq.m. phis Tensas and Gaidai 
9 rooms, Ktidra. 5 B**ro«ns/WG. 
FtoOy Rawed and Renovated, Air 
OwfitioaBd, Many Special Founts 
No Idom* or Property Taxes. 
Offers cc FF&DOQjDOO 
Please contact Owner 
(33) 93 15 91 « 

FAX 92 16 91 51 


A VIDEO 15 AVAHAHZTO PSBYTEW 

wntnwearrv nobth or mgrsac in 

THE TAttN KT CAHONNE MAEVHWSF. 
GUEST HDOSKCMffitAKraSOOVEMa 
(TO CONVERT) DOVECOTE. 2 HOC* 
HUNS ALL IN QGEHCY STONE WITH 
SOMAN HLSD ROOTS. SWIMMING FOOL 
WITH WATSHFALL W LAJ®SCAPED 
GABDC6. ADDITIONAL WOODS. 
STUDDING VIBW& ABOUT! HECTARES 
FBKXB95JM 

Tet 010 13 639522481 Mr-fenttaww- 
(^wwiHNClWBMq* Va^Bmoa- 


BETWEEN CAP MARTIN 
AMP MONTE-CA RLO 
Bmspflond flat with 1 master 

bedroom and argute bathroo m -2 
mge badroomtfZ bettrowns. ErtWy 
itMDta Soots. Modem equip ped 
kitchen. Terrace tack* the sea. Sme« 
Ngh atanefing buidtng pool - M 
Marty.PDri»a-Oag ow ned 3S-1 - 
46245257 or Fax 33-1 4067/393 




NOW IS THE TIME TO BUY 
«««**«*» 

ueAgpMafiea 

i A Apa Now A Rente. 

Cbea*r 



COTE D'AZUR. ALPES MARfOMES A WAR 
SPA (EU) Mil* tee beet Apartments 
md villas In Cannea, Monta carte, 
ft Trope, Vanoe, AnKwa, IttntDP ** 
otter desirable exolualve locations. 
Tlfctm -4830808 fine 071 -AtSSOttB 

*- nwaca (near carcassonh) s 
1 tete-ptel + snail house, tree*. aoNto. 
western locaOoa Wed » buid totsure 

Iwosa. 77TOO0F** M 89432378 fisc 33 

BMamoREFMssstgnsn 


FRANCE 

South West 


The Final Frontier 

12 th Cmtmy chateau - 
1,000 m? living area. 3745.000FF 
Renovated Mas- 
SOOnf’ living area. 1-915.000FF 
Further details from 
Agence Alpazur 
TeL (33) 6L042&28 
Fax- (33) 6L66.4&32 


SAINT-PAUL DE VENCE 

Kara - townhonse - detached 
Immediate outskirts of this 
delightful village, stone built, huge 
terraces. 2 reception*. 4 bed, 4 bath, 
tastefully renovated, facing south 
sod west, parking 
Ret 3592 - SOLE AGENT 


JOHN TATLOB 
IUKS 


The I 


i Mas 

BADCS or Urn SANDERS 
1U: (33)934*040 to <33) 03^049 


YOUR BOAT CROSSING 
ON THE 

COTE D'AZUR/CORSICA 
in Searangor 53, umqaein France. 

Owner rente wah skipper : 
t ra dkm 16 metre trawler, rapid 
(18 knots) highly com f or ta ble. 

3 cabins, 3 bathrooms. 
Sleeps 8, fly bridge. 

Tfi: (33) 93.9S.2&47. 

Fax; (33) 93^1-27.29 


WHY 

PAY PROPERTY 
AGENTS 

Buy straight from owners 
all over France 

OFFICE NATIONAL 
DES PARTICUUERS 

Phone: +33/79.65.14.19 


CASTLE: PAIAKVISCONTOBN 
Unique era the Cfitc tfAzur between 
tndMooeoo, 15 minutes from 
Nioe airport, owner rent* on mtinlMy 
basis huge old domainc, large 


6 bedroom eecb with own 


puk, vety old rose gmdee, panoramic 
sea view, refined deeuttiofl. 

Teh (33) 93.9E28-47. 
Far(33)912L27^9 


CHANNEL ISLANDS 


UTTLESARK, 
CHANNEL ISLANDS 



NO income, property, 
transfer or inheritance taxes 
complete goup of main 
house, quest wing and 
staff quartos each separate 
facilities and foil services. 
Sea promontaiy 25 acres 
£450,000. 

Owner 

Gorder Oarry Bsc. Fries 
Tet (44) (0)481 724255 
Fax (44) (0)481 728360 


GUERNSEY'S 
LARGE ST 
INDEPENDENT 
ESTATE AGENT 


Si'tt iM.r s' , r vf,' ;v on. \ Mmhu.i 
try \\.\n..\nu :<• 

SO\ - A’ i'.'."'// 


If you an canaidaring relocation 
we offer a personal approach 
mj IkKK TTmT/wfindnT pactfile 
and Colour Property brochure 
on request 

4 SOUT H ESP LANADE 

8 T. PETKE FOSOQDBBNBBT 
TEL: 0481 714445 
FAX: 0481 713811 


Hamptons 


GUERNSEY 

Come to Eve where the quality of E/e 
counts. Free property pack 
available from 

BAMrTOKa Makccl Malms 
SO Ifigh St, St. Peter Port 
7* MU 713461 Fas 0481 7U458 


GUERNSEY 


Contact us now. Discover the 
ci rque vb/uc of Guernsey life and 
geneaws tar benefits fee resudenls. 
Ask tor anr fine foil colour 
property portfolio. 


LOVELLS 


ISLE OF HAH - PROSEARCH The 
property epecleilete for buying or 
renting on the tslend. 
Tel/Fax (0624) 862186 


Caeoseys larpM and moa dfcctne 
indepeadrm case agent- P.OL Bat 50. 
11 Sukh Sueo, Sl Peter Fon. OataBBj. 
TEL: MSI H3et TAX: MU 713*4 


QUSWSEV, ALDERNEY SARK - butirwa 
and luxury homes. Toetwbi PaitneraMp 
Tet 0481 5BSOS Far 0481 51103 


SPAIN 


SPAIN 

Coma Blanca 

A. nw lm afe of vflba and apartments 
CoetaddSol 

Mqaa - ptObaMy the beg residential 
ajaADnbjndlM 
WHIiEWAY FlOrwiuS 
TeL- 0423 8558912/ 071 284 0114 
Hue 0423 853755/071 485 48S2 


I COSTA DEL SOL- SOUTHERN SPAIN. 





ppedw«filop<xi«8ryi 


EURO pnoPBITY ADWSStS otter a uide 

mge ol preperfee In S» OoH EtfetaeoT 

SMomande. SSm. Spehi and WN do Lnbo A 

Qi ifteteUg^ AigavaCalJerrtePIndBr 

on 0722 419638 


jSSpMfiSbSS'SiraatSwMj 

^$a»lCba 0 WOa BuaateodaJ 


£19*000. 


U.S.A. 


Houston. Texas 


Praettgioua 4000 ncm Fttnch 

Bccetent Hwy Expo*xo 
Over 100 Coaetel Paeturae 
12 Hamas A $1 nMon in Equipment 

Horae & CBtte FadHee 

AJl. SaUay Raatty 
71 3-870-8488,840-8854 lax 


SOUTHERN SPAIN. Country vfltas. 

Hncea {tom*) aa at C2Sk In one at the 

mo* beeutfM areas bt'aoutfwn Spain. 

Indudhg SO of the tegrat nraui raeanee 

hEurupai Maoagmsvraeal AXMRQUA 

REAL ESTATE 8JL Pine do AW§ era «, 

2875* Compata (Malaga) Spain. 

Tit Ofl 929B3368FK 04) S2553BB7 ’ 

COSTA DB. SOL PHOKHTIEB MertMte 

. OOoaa. For lr*)m*tfcin & Price Mrtng . 

061 W3S761 anyemai FtoiaSte 

APPOINTMENTS 


SWITZERLAND 


SWITZERLAND vuam^olum 

I oM i> taottig lor tta hMiimb, unapom amtnranara to own • hoow lor eacuriO 

and part-tbaa or parmanant rasidancy, ViBara In tita ragton of Montraux In 
Canton Vaud offara lha ultimata four eeasofl Mlutton to pollution fraa. yal 
varlad and InH modern IlfMtyia. aot In a oadra of tradlttonal vIBapa valuaa. 
Sturaad M a uMduilaMe aMtoda of 1200 to., k offer* every concainbie taeflky, 
from akHng to golf. Our brand new buMIng itw 'Daphne* m ■ smart, select, 
fcaah n to d uM ope WiWsK* for wla to nonrosldara fotalonsCTL Nbimad tetoa vary 
bran of tw meort. k la Rote aioW-teWM wads-JM ranta teaeb and manutag 
dtoranca from Qeneve, Lausama. Bam, Oataad end Ml about anywfmr* alaa to 
8wbzettond or M of EoropaL Ws era daSglMd to ofler for toe Brst Ifcna to toe Brtdsii 
prase, ttraa 1 to 3 bedroom tacampaoUe aMN eglo eparonan*. fliaro Iwa never 
bean e mom bemaM dawtapmart to tobnaaort, or mgusbiy ametoare in toe Frente 
■paNdno ntfon of MmM. 

P a putt e fc— MMO Frfaaa fcam El aftOOO {Pr ..580,0001 

U|p be IK ftamiraag wvrabUa at Swta Stom wawfgagp iraoa of apgiaoc 0% 

Tbasa freehold properties ropreaanl Bw vary bast example of apartments, 
chalet* and house* wMoh wa build, ntanage and promote to Switzerland and 
America. Lanrarda ProportlM hdaf na t l cnal la a British owned Swiss company 
with over ta years experience, offering lull advice on investment* both 
Swiss and wortdwW*. Company domlclllstlon and work paroilta lor diems 
raatong panoraart Sran or UA raddani ateua. 

LENNARDS PROPERTIES INTERNATIONAL 


SWITZERLAND 

Luxury lakefront residkncb, Lausanne 

Unrestricted view. calm. 

7 bedrooms each with bath, 2 large living rooms, 
dining room, kitchen, phis 5 rooms for 
dependence, guests or office. 

3000 sq m garden with beautiful trees, 
s w im m ing pooL 

Tel: 41 22 786 SI 12 Fax: 41 22 786 60 35 



Lain Gensvaj 
Mountain resale, 

tetesmi qurito ABWIMBfPl 

CHALET to MoSrm&xx. vuarsJ 

Uffl PWUHgTS. LEYSto. OSTAAD I 

toton CBW&toOHtmA. 

*totem8ft2DP9n<-CM«IHari 

REVIICSA. E j 

at is* di iwai i Ete CH-mt BHBat I 
RL ««4L2Z / 734 tfi « - jte.TM Ufol 


SWlTZBttAND 

It at ompotod la Etaupe far btofly. jMBQr 

a Be Md ssnrty. vn «teassd to oltor in 

UhaM aholcB of OMLEntAMRlMBUS 

SOME I 

FOR A QUICK SALE 

FyeWca Sjiayy of ooraot Brtp 

HE LARA A 

, 23 wuastomAwna.8B-UxidanW43HA 
Tit (44) DBW42 0708 tee (44) 08t-742 0553 


“gSSSSSSESS 

West Asece, idwesax. rllte. apstrawn. 
Mutry A town bo**»- far deull* or 
^Lyr lVt 0811085*83 

h^kh pnoffiRTY NEWS- Frseltovawy 
jfflnr yaw taw WW»°3i4«2 tool. 


i LORil) A S rARADlSl 


Baa Bam / Mm Beach Lmmy 
Wnleafroot & OoKboorac iknoea 
Bavar R ftxtnnnfiti Qn. No Fee. 
AxvidaRerily Saks, Ltd 
Tel: 01 Wj407.479j 6415 
Fte 010L407J54L8028 


MAKBELLA 

OTITCE 

of well known UK estate 
agents needs experienced 
salesperson with Hnglj^i 


good cojraraision. Fax 
CV.Vto 010 345 2887015 


CMEMt-SULLEMAN - LAKE GENEVA 

- PMhousa isonf 4 beck, M Hchan, istty 

rooms, 2 oars garage, superb lake A 

mountains stews - iBkme Genov* Hr 

1JBOOOO M (33) 3004.1333 

■ W ma MAWP tocanbeofFortrartoSoM. 

. Luxury apartment, for 10 persons. 5 

: bedroom*. 2 bathrooms. Oortous sUng 

'■ toxn toe tort (toon SFRSOOlOOO Incbidtog 

■; tenfiue. tee 444 894087027 

ALPS VMerangaol propwttss to nandi and 

Ssrira Ape. Apis- FF 890j000 -tf ehatato - 

- fiF OGIUlQO*. 4 Omars - FP18BJXKX Santa 
^■gpspoWsrlW OBI 670 1770 

ANDORRA 


ANDORRA (Tax Free* 


Wool dudEm boose, 340 aqra Splendid 
■moc skws, fa gender, asamfcr pert td! 
.IPycaiiaai fbefag S^hc kwngfc D*. huge IT 
[itfachca, randy, 4 BBS, two bstimoms, 
N dmtoo oa, very Isrga geroga Cf&QOO nr 
ewhistii smite is flsgliail Smlmll&g 
fbtrMOmptrt afgtrdct. ahojbrmtc. 

"niftm «EifirA>dbm434S» 


PROPERTY 

EXHIBITION 


MICHAEL 

HOBBS— 

ESTATE AGENTS 

3giisnmWHMIm».n«xy Snara. 
BMbBAiaS 



f HONG BONG EBLTONHOTElA 

V jPHEri-ipireiffigVK J 

■asIsttoiteCkyetBrib. teSorabWisef 
I bpwLGewrLedgieltoHniCnrai 
I Spsdtai fiy fsybsd weCky o miv A p s ns—e . 
Cbswsy Bnam md CoBiBm fa Ac pdm wags 

Isom* mooo 

FOR. DETAILS OF BCJW TO EEINQI1DGD 
IN THB PRETOCHOUS tVX&Tf 
EX B amBN 

TteS33£4GQCa tecO»«M7Z 



maromaniHU * Woe ororoe, sumn 

ucmoNj * Fsoh ucmts to iwmmx. 

wa M«J* with rarrmuK 


R FAX TOD 


DEO - I 

!£Ohl 

HOMBOWNESSWIEBNAIMMAL 
Os cw mo Nswus Hours RMunmsoeowM BM8QQ 




BRITISH VIRGIN ISLES 

VIRGIN GOROA - VHfa tocsxfc 
£295.000 

5 Donhk Bedrooms cadi with en suite 
bathroom, private swimming pool, 
sednded location with spectacular views. 
Rooms available for renal GSO per wedc 
For detatti Teh 0206 854405 
or Fax; 0206 795077 


Caribbean Land For Sale 

4 sacs of superbly shed laud cm tbe 
lovely fatand (Tut Haven) of NEVIS. 
Spectacular sea views sad near tbe goU 
comae and the Four Seasons Hotel. 
Survey in place. Suitable [or one to 
four bouses. Price X35QJDOO rav 
Tel (USA): 7«2 831 2436 
Fax: 702 83J 7920 


ITALY 


CREATE A DREAM 
IN RURAL ITALY 

A beautiful colecncn of i WnHc FAKMHOUSES for Rinnun, see m a 
PRJVATE ESTATE between CORTONA and PERUGIA. 

The ownoi of CASTELLO LM RJSSCHIO otfer j fid service m the 
pwdvaer, ucludns til IcriI riocu met uanon. pbrnung pe nnim on. tiewgn. 
renovation with GUARANTEED FIXED PRICES, intenor 
dccoiaong and laakapinp. 

Pricer sarr at £BQJXJO pkn muvanon 
For funher mforandon, raCfWQBX pimcandfhiOvM, 

Twl 071 386 5592 AjPgl ft Ifons 071 386 5592 

CASTELLO £>I HESCHXO ** 'W m EXCLUSIVE PROPERTIES 


EAST TUSCANY 


Restored 17-C farmhouse, 
exceptional oosUion overlooking 
Upper Tiber Valley, 35 Kms. 
Arezzo, 15 Kms. centre Anghiari 
(thriving medieval hill town). 
4J25 hectares include woods / 
alive groves / garden / stone 
bam. House 430 squn. ind. 100 
(sqjn. s/c flat & sep. double bed /| 
shwr top fiooc 150 sqjn. hall/ 

2 bed / bath / Study / larder/ 
dining / living/ kitchen: ex- 
stables / cellars, ind. past chapel 
/ portico entrance (unxestored). 

Fireplace, trad oven, cotto 
flooring, oil c/h, solar-heated 
mains water/ el. 8c phone. 

Dm 940,000 / £376,000 ona 



ITALY 

Como, Liguria, Piemonte 


20 ami from eee 


2 bed 


Restored rdbre mill with stream 
£149,000 

Luge fonnhobte with 5 aocs 
£139,000 

2 bed apL near lake £50,000 
CASA TRA VELLA 

TKLtteOZ 668988 Phi: 022667206 


ITALY 


Tnscan/Umbriaii Border 

Reduced for oujck sale! 
Magnificent, early 18th century 
PalladiaiHstyle vi lla. More than 
1.000 sq. m. accommodation. 
Frescoes. Swimming pool, tennis 
coon. Foil details from Sole Agent 
Brian A FtocH &. Associates Lm 
UK: Tet (071) 284 0114 

Fmc (071) 485 4852 
rEALY: Tet (07S) 951824 
Fnc (075) 951024 


TUSCANY LUCCA HLLS Raatond bouMu 
3 bade, 2 recap, large kitchen, terrace. 
Rxrttiwd ESSJ30O Tat 0444 802 S43 


SHOOTINGS 


TUSCANY, BETWEEN FLORENCE A 
AREZZO: Panoramic large vIHa In 
baa u B M eatato (41 he} met game nwwve, 
ofafl grow. Price teOlWJoaOtosraxekrav* 
properties avatebto. For broebura: 
toinobtem TteearW tec +8&56JM0a03 


La Mancha, Spain 



®*C3UDSIVE SHOOTING 
ESTATE 

Fantaatie wild partridge 


bmlt and fatty decorated 
manor house 770 ha phu 


Fax got) 46 8 2149711 



v 


















CONSERVATORIES 


People in glasshouses . . . 


If you are thinking of building a conservatory, Gerald Cadogan has some advice 



Classical shades: roof and Me Roman bfinds by Appeal Bfinds 



^3 

-■ * 


% 


Clay imderfoofc octagonal fw wBh brown dtamond border from Susaax Terracotta 


I f you missed Chelsea Flower 
Show, you have not lost your 
chance to see one of the 
show’s best houses in glass. 
Alitex is giving its glasshouse to the 
Royal Horticultural Society's gar- 
den at Wisley, in Surrey, for the 
national collection of carnations 
which the society and the National 
Carnation Society maintain. It is 
now being reassembled and will 
reopen early next month. 

We think of con se r vato ries as a 
wholeheartedly Victorian comfort 
In fact, they go back to the 17th 
century, as greenhouses for rearing 
tender plants. Conservatories were 
for rearing orphans and foundlings. 
(The use of the word conservatoire 
- conservatory in the US - for a 
music school has the same origin; 
the Italians started music conserva- 
tories in Naples in 1537, tending- 
the orphans to sing and play.) 

In the lSth century in late Geor- 
gian times, conservatories caught 
on. In 1824 Walter Scott wrote in 
Bedgasmtlet of rendering “the par- 
lour more cheerful by opening one 
end into a small conservatory I 
have never before seen this”. They 
stayed popular in Victoria’s reign, 
when the advances in glass arid 
iron technology led to such free- 
standing glories as Joseph Paxton's 
Crystal Palace and the Palm House 
at Kew Gardens, or the conserva- 
tory at Mentmore, Mayer Roths- 
child's grand stately home, which 
•Hwifpri the morning room and the 
smoking room. 

The development of central heat- 
ing meant that, regardless of the 
weather, these house-annexes could 
be used to rear the exotic plants 
that poured into Britain from the 
rest of the world. 

No wonder Charlotte M. Yonge 
gushed in The Daisy Cham: “A zeal 
bower for a maiden of romance, 
with its rich green fragrance in the 
midst of winter A picture in a 
dream A fairy land, Where no care, 
or grief; or weariness could come.” 

Such attitudes explain a tradi- 
tional function of conservatories. 
Lush and warm, and full of hopeful 
light even in winter, they are ideal 
places to propose in. 

If you are adding a conservatory 
to your home, malm sure you have 
the technology which allows auto- 
matic control of light and ventila- 
tion. If possible, have a look at sev- 
eral companies and ask what is 
included in the price: preparation of 
site, delivery, erection, etc. Prices 
below are rough guides, and do not 
include VAT. Check also if planning 


permission and/or conservation 
area consent are needed, the host- 
house is listed, you probably need 
listed bufldtng cnnwit for altering 
the character of the house. This 
brings a bonus. The work should be 
free from VAT. 

Most important of all, especially if 
you choose the more personal and 
expensive companies, thrafc about 
what yon will use the new room for. 

“One wm# n«ipft sure the layout 
works,” say feta Marston. of Mar- 
ston & langinger, author of the use- 
ful The Book of the Conservatory 
(Weidenfeld & Nicolson 1992, 
£3 &9®. 

“Conservatories usually go at the 
back, which is often a jumble of 
pipes. So one has to think out the 
arrangement of the house, such as 
access to the kitchen, and the 
plumbing- For £40J)00, you do not 
buy }ust a conservatory. In Lcmdon 
it may be a (fining room. And for 
Victorian houses in the country, 
which usually have plenty of space, 
yon are buying a different type of 
room." 

■ AHtex (Alton: 0420-82860) is pri- 
marily a maker of glasshouses, 
which includes a Victorian- style 
range with, outside cold frames as 
an extra. Besides its new glasshouse 
for Wisley, It has rebuilt the Victo- 
rian glasshouses at Sir George 
Staunton Country Park at Havant 
in Hampshire, using old photo- 
graphs *rad painting s. 

Prices for glasshouses start at 
around £7,000. The Wisley building 
would cost around £11,000. Some 
private customers spend £20,000- 
£40,000. 

■ Amdega (Darlington: 0325-468522, 
or US: 800-9220110) is the largest 
maker, offering standard designs 
that can be adapted. Typical prices 
run from £2,947 for a porch to 
£19,183 for a Gothic design with a 
clerestory lantern, and do not 
include installation or building 
work. 

■ Glass Houses (London: 071-607 
6071) is unusual. It is basically an 
architectural practice designing 
every conservatory individually for 
its hosthouse. It takes about three 
months from order to completion. 
The company also specialises in 
orangeries (which differ from con- 
servatories as they have some stone 
in them), roof lanterns and summer 
bouses and garden pavilions. Their 
cheapest conservatory is about 
£10,000. Some cost £100,000. A typi- 
cal price is £20,000 to £30,000. 

■ Marston & Langinger (London: 
071-823 6829) finds that all its host- 


, K-y^y/?£X 



houses are pre-first world war and 
30 per cent of them are listed build- 
ings. Prices range from £10,000 to 
over £300,000. An excellent hand- 
book covers a foil variety of smart 
architectural designs and details, 
and furnishings. 

■ Oak Leaf (York: 0904-690 401 or 
US: 800-226 124 8) also designs Indi- 
vidually, In a modem style as well 
as Victorian, using Canadian west- 
on red cedar. Oak Leaf recently 
rebuilt much of the 19th centum 
conservatory of Broughton Hall in 
Yorkshire. Typical price for a 20 x 
25 ft conservatory: £22,000 (includ- 
ing erection and leadworkX 

■ Portland Conservatories (Sal- 
ford: 061-745 7920) is another maker 
of individually designed conservato- 
ries. Prices start at £8,000. 

■ Room Outside (Goodwood: 
0243-776563) emphasises the durabil- 
ity of its individually-designed con- 
servatories, winch cost from £4,000 
to, say, £30,000. A typical price is 
£15,000. The company also has a 
cheap er range called Highlife, from 
around £3*500. 

Two important fitted accessories 
are blinds and tiles. Here are some 
stockists: 

■ Blinds. Appeal Blinds (Bristol: 
0272637734) makes blinds to keep 
tiie heat in or out, according to the 


The coneenrstory butt by Mtai at 3k George Staunton Country ftefc, Havant 


season. It uses several artificial fab- 
rics and pdnotaim - reeded pine 
wood which has been made In 
France for 100 years, and costs from 
£95 a square metre (including fit- 
ting). A thermostatic motor is avail- 
able from £680. 

■ Tiles. Sussex Terracotta (Bur- 
gess HUh 0444-241236) produces 
hand-made tiles in orange, yeQow 
and brown Wealden days dug from 
a pit at an old brickworks. As the 
tiles dry for several weeks before 


firing, they are aH slightly different 
but mi* well and wear well. To . 
design yodr own floor costs firm' 
about £44 a square metre. Paris 
Ceramics $171*371 7778) sells tilea 
from all over the worid 7 and oH- 
tiles that have been salvaged. 

■ Finally, those looking for a 
house in London with a large con- 
servatory could consider 8 Mon- 
mouth Road, W2, on offer from 
WInkworth (071-727 3227) for 
£485,000. • 


AELA is the only 
professional and regulatory body 
solely concerned with residential 
lettings 


/^RD\ 


A ssociation of Residential Letting Agents 
18/21 Jermyn Street, London SW1Y 6HP 
071-734 0656 


ARLA. members hold prafeuumal 
indemnity insurance and comply with the 
requirements 
of foe Associations 
Fidelity Bond 


COUNTRY A.R.LJL 


LONDON PROPERTY 


LONDON A.R.LJL 


barnard 

marcus 


Twelve networked offices throughout London offering: 

* Multinational and Blue-Chip Corporate tenant base. 

* Dedicated centralised management and legal administration. 

* Separate department specialising in Prestige Properties. 

* Part of Royal Insurance Property Services the National Agency 
Network 




Ins 


Call our Property helpline 
Tel 081 742 7566 Fax 081 742 7837 

Member of tba Association of Residential Lettings Agents. 


rjl MARLER 
lOJ & MARLER 


The Knigfatsbridge Agent 
We are a wdl established firm 


to predominantly corporate 


We oigeotfy require high 
quality one to five bedroom 
properties. 

6 Sloank Street 
London SW IX 9LF 


Hamptons 


m»IOINTIAL LITTINQS 


BATH 

38 Gay Street, Buh, Avon. 

TeL (0225) 444704 

BEACONSFIELD 
10 Bmfces Parade, BcaconaGeld, 
Buckinghamshire. Tel: (0494)671511 

GALNB 

5 Wood Sleet, Caine, Wiltshire. 
TeL (0249) 814288 

CHELTENHAM 
103/105 Promenade, Cheltenham, 
Gloucestershire. Tel: (0242) 263559 

ESHER 

51 High Street, Esher, Surrey. 

Tel: (0372) 466646 


GUILDFORD 

242 High Street, Gufld&wd, Surrey. 
Td* 0483) 577577 


MAIDENHEAD 
11/13 Queen Sheet. Maiden head, 
Berkshire. TeL (0628) 7588! 


MARLBOROUGH 
20 High Street, Marlborough, 
Wiltshire. Tel: (0672) 516256 


COUNTRY HOUSE LETTING 
DEPARTMENT 
6 Arlington Street, St James’s 
London SW1A1RB. 

TeL 071-493 8222 


BAMFTONSIS A. MEMBER OV THE ASSOCIATION QV 
BKSuramAL LETTINGS AGENTS (AMAJ 


Daniel Smith 


UVN 


*\ BLACK HORSE A(, LACIES 
^ Gascoigne- Pees 


THE PROF ESSIONALS IN 
RESIDENTIAL LETTINGS AND MANAGEMENT 


ROIT GUARANTEE SCHEME 
FREE BROCHURE ON REQUEST 


HAMPTONS 


RESIDENTIAL LETTINGS 


SIBATTON STREET ■ Wl 
Job of endow 2 taboom Ski, cythHy 
r do%Md ant skated h « m period 

JSS-STSpo-mk 
Bred Office. Td; rt-03 txa 


nuamrs lane - nwj 

A abed grand Boar OH. steam jest off the 
hlgb m e( Hufnad ViUqp, dose to ibe 
I IrMt. DcoMe reception nam.mfy. 2 


CABDENS-Sm 



1350 per week 

Bunpmad office. Tcfc *71-43 1 4462 


LtahCMden. 

LWWKmSTM 



MIDDLESEX - HAMPTON COURT 
A few ttaboeu period reridcace, enjoyiq; 
Mttafcd vkvn am Hampton Coat Greta end 
putioad. HU, 4 reception moos, 4 bedroom, 2 
W mm aBa.llMlTHnB.Oato.OMlc. 

a 19 per week 

Wla*tola,gaoB.7tfcML4W IMI 


TWICK ENHAM - MVEMUMt 
A 2 bedroom con milm epmuciA DYrrit y 

iri luM A Mln, ^nHari. wkti 
river vi«^ loaned cfaM to ftebdftiaaf 
cental TMekeakta. 
XUHpermlh 
BUmi office. Tefc<Bl»l OB. 


room, um » a M i j jta. A b tt Jro aan . 2 


g,15> per we ek 

ajhWtWend •ffice.Tcl; WtSKNSS 


MDDLCS&X > NNNBR 
A line dnaaer toac k a neb 
reception BKom, kfcheoflneaktat non, 4 
tmtmorni. hutoOCTn. ftomc. Ganging, Mn. 
4MN per waft 
Honor nffico Tft M4M8 8731 


Hoag Kong: Etutosa^ Ccnoc. Duricfl Street, H± 010 8323362711 
Head office: 6 AdlagnnSlKtL Si AnesXI^adoaSWlAlRB. Tel: 071-453 8222 
HAMPIDW5 IS A MBMffln 08* THS ASSOCIATION OP tUglllliwnALLgrnH08AflBNtS(AMAJ 



THE LOOK THAT LETS 


FOR EXPERT ADVICE PLEASE RING 
VICKY PALAU - 071 730 0822 

rm 



REGIONAL LETTINGS OFFICES IN LONDON (CHELSEA! 

AND SOUTHERN ENGLAND: 

ALTON 042083666 FARNHAM 0262717000 

BRIGHTON 0273 606746 GUILDFORD 0483300330 

CHICHESTER 0243 532040 KINGSTON 0815464000 

COSHAM 0932868946 LONDON SW1 0717308682 

EASTBOURNE 0323430042 RHGATE tJ737 221411 

FAREHAM 0329234441 SOUTHAMPTON 0703 


St.. John's WoodNWS 


HAMILTON TERRACE - Substantial mid-l9th century detached hotne 
requiring refurbishment. Existing accommodation 9 Bedrooms, 4 
Reception noma, 5 baths, 3 other baseme nt rooms. Kitchen, Urge west 
facing garden. 

Lease 99 yxabs £325£M 


HAMILTON TERRACE - Grade 11 listed terraced boose requiting 
refurbishment. 6 beds, 4 reception rooms, 3 basement non + 2 doable 
garages, wbh possibility of conversion to mews boose. . 


LEASE 99 TEAKS 


6690AM 


QUEEN’S GROVE - Only 5 mews houses, 2 town booses and 5 fists 
r emainin g. Features: Folly fitted kitchen, luxury bathrooms, central 
beatlqg, cable TV ft telephone, fitted carpets is mews bouses sad fiats, off 
street parking for mews booses, automatic gate with andu/visoal entry 
system to mews. 


Mews Howes 2-3 BewooM 
’Tom Boons 3-4 bedrooms 
Fiats 1-2 Bedrooms 


99 Yeak Leases 
99 Year Erases 


C 265 JOOO - £ 360^00 
£295,000- M25,#00 

U3MN-U^M 


Tel: 071-483 2972 
Fax: 071 722 1257 


COUNTRY 

PROPERTY 


residential 
lettings & 
management 

in Putney 
Coombe, Wimbledon 
081-947 7351 

17 Oiurdi toad. Vflrrrttedon SW19 500 



Townchoice 


Network. FtthmHnu. 


r 5t A confidential and discreet 
home finding service by independent 
experienced property experts for 
prioale or corporate dient*. Wig cover 
Sussex. Kent, Essex. Herts, Bucks, 
Berks and Surrey. We can reduce 
stress by saoLcg time, effort and 
money, ooeneia diente an welcome. 
Tel: (0323) S09307 
Fax:(0323)306439 



Highbury Terrace 
Highbury Fields, N5 
Ovetiooking 30 acres of 
greenery, a handsome Grade II 
listed Georaain house. Well 

Iwith many fine 

period features. Close to 
transport snd Upper SL 3/4 - 
receps, S/6 beds, final lek, 

2 baths St shower, 60 1 garden. 
6495A44 FREEHOLD 

Td 071 226 1313 
Fax 971 359 9481 


Specialists 
in the sale and rental 
of residential property 
in Covent Carden, 
Soho, Bloomsbury, 
Holbom and Mayfair. 


mm 


Was 



^ • 


v - 


LONDON RENTALS 


eagle wharf court, SE1 

Furnished 1 bedroom apartment with original features in 
waiehome c on ven tion dose to Tower Bridge. £09 per weefc 

THE CIRCLE. SE1 

Famished smdkH/1 bedroom apartments fa new development dose to Tower 
Bridge. Leisure BtiUtes on development - preferential rates far residents. 

£150 -£260 per week 


We argeutiy deed property to meet the increased demand 
experienced $o Ear this year. Contact Merid McCarthy: 

DOCKLANDS OFFICE: 071 407 3669 (ARLA MEMBERS) 


residential 
lettings & 
management 

in Putney 
Coombe, Wimbledon 

081-947 7351 

17 Chureb «nd, WMMdoe SW195DQ 



barnard 

marcus 


TqWN'CHOICF. 


SOtfO 

2 bed. 2 tarb peoibnuse tpntmaa wfch boA 
reiuu a iu l«fldprHaabakaettf.tl5Qpw. 
COLVILLE PLACE Wl 

3 bed, 1 icccp, newly refill fa, bs In quiet 
■Kmjnfvaie eft ftciiQ reoT anr, CS20 pw. 
MORTIMER STREET W I 
S elec t i on fnnuaiml | bed Dlls la — 
P88, ideal Epr dmvtl, COO pw. 
HALLAM STREET Wl 
Zbat2taft btiDKbrpnted Hack. £300 pw. 
BARBICAN ECZ 

Srieokn lMfaaLBMiwibbdaEn£19Spw. 
Member ol fee ARLA 

T«fc 07104 2734 Fa* 471434 2649 


• Ova 200 individually 
decorated apartments 

* Five day maid service 
■ 24 boor reception 

* Weekly rales from £250 

• Minimum RenUl Period 22 days 


Leisnre Club with 
swimming pool 
Studios or One Bedrooms dais 
Satellite Television 

Dircd-dial telephone 
Fax/re l/photocopy ing 


Contact; 

The Accomuiiodafifw Office 
TeL- (071) 584 8317 
Fas (071) 823 7133 


Slotme Avenue 
London SW33AX 


Nell 

GWYNN 

HO^ 


FRANK HARRIS & COMPANY 


,f Do You Want to Let YomHometo 
National/Relocation Companies?" 

Bloomsbury/Covent Garden 
Residential Letitncs Office Now Open. 

Tel; 071 387 0077 Fax; 071 388 2504 



i British Monies - London Mats Ltd. 


Short term luxury flats personally selected. Suitable for executive 
business trips or discriminating family holidays, One third the cost of Gist 
dass hotel without sacrificing quality. Full kitcheiu-liuniry twth too ms- 
in tenor designed receptions and bedrooms. Maid service. Mayfair 
Belgravia, Knightsb ridge. Theatre, chauffeur, nanny services. 

(USA) TeL 516 883 2717 Fax 516 9+4 3267 (UK) TeL 0800 894475 




Debenham 

Thorpe 


Hays Mews, 
Mayfair 


Newly refurbished, tin furnished 
mews house with garage. 
Hall recep, kitchen, 2 beds, 
bath, garage. 

£400 pa week (long let) 

DTZ Dcbca tuun Thorpe - 

Resideutul Ldtings: 071 408 2748 


Aldersgate Court 
B mthofomew done EC1 
Mcdinm gizcsiwtioBand 1 Bed 
Flat* ^to rent Frora £i 10 per week 
ftimAmfurnfebed. 


Sales A Ubtwo Afsana 
50 Gbesbau Siroar. London fiCl V 7AV 


c 







STUDIO LIVING 


The shining light that’s an artist’s holy grail 


Gerald Cadogan finds properties with 
space , shelter and light which may 
appeal to art and crafts people 








:.w 


S tudios are rarities in the 
property market I mean 
real studios, not shoe-box 
studio flats which are little 
more than a tiny kitchen area and 
bathroom with a sm^n frving/sleep- 
ingfeattng area dominated by a 
futon that is both sofa and bed. 
They resemble studios only in their 
open-plan design. 

The job of true studios (or ate- 
liers) is to provide space - lots of it 
- plus light and shelter for artists 
and craftspeople to work in. Often, 
they are so roomy that the artist 
also Jives there - or cannot afford 
anywhere else to live. Bat roam for 
art is their prime purpose. 

Large windows are essential, 
whether skylights or in the wall. 
Traditionally, they should face 
north to provide a steady, subdued 
light which the sun’s daily cycle 
will not affect - a need that proba- 
bly began with portr aiture . But not 
everyone wants a steady light, says 
artist Jeff Clarke. For painting 
objects, a bright variable tight is 
ch all e n g i ng - as it Is for painting 
landscapes at different times. 

If you are a sculptor with shriek- 
ing electric drills, or a potter, or the 
work is smelly, Clarke advises mov- 
ing away from & house. Old form 
buildings are ideal if they have 
water and electricity. Bams have 
the space, and a cow shed (which 
will have drainage) makes a good 
potter’s workshop with room to 
house the kffn 

The ACME Housing Association, 
a registered charity founded in 1972, 
takes old industrial buildings for 
artists to use as work space. The 
buildings are in London - Brixton, 
Camden, Hackney and Stratford - 
apart from an old fishermen’s net 
loft in Porthleven, Cornwall. Artists 
pay about £3£0-£4 per sq ft all in, or 
about £40 a week for 500 sq ft 
This imaginative scheme has 
helped artists such as Helen Chad- 
wick and Rachel Whiteread, the 
recent Turner Prize-winner. Now, 
ACME Is looking fin- a large indus- 
trial buflding where it could offer 
both living and working space. 

Few studios keep their original 
proportions after conversion to 
bourgeois residential use. But art- 
ists and others continue to use 
those where Turner’s students 
worked in Glebe Place, Chelsea 
SW3, off the King's Road in west 
London. Two-are on offer from Be 


Groot Coflis. Above the front door 
of No 69 (price £795,000), Turner’s 
name can be seen in relief red brick. 
No 54 costs £885,000. 

The same agent is s elling i Mal- 
lord Street, SW3, where classical 
pianist Louis Kentner lived 
played for 45 years. It has three 
double bedrooms and a 30ft-long 
studio. At £i.25in (down from 
£L4m), this is a for cry from impov- 
erished artists. 

No 28 Yeoman’s Row, SWS, off 
Brampton Road and placed iflpgflVy 
to look alter all spiritual, cultural 
and material needs - the Brampton 
Oratory, Victoria & Albert museum 
and Harrods are nearby - is a dou- 
ble-fronted house with three splen- 
did studios. The agent is Egerton, 
and the price for a 53-year tease 
(from Smith's Charity and, perhaps, 
enfranchiseable) is £775.000. 

No 6 Stratford Studios, W8, is an 
elegantly restored, late-lith century 
studio in a group off Stratford Road. 
It has three double bedrooms and 
costs £850.000 (from Strutt & Par- 
ker). The wooden floor of the studio 
roam is in such good nmi rttiinn that 
you could never dare to drip pafrit 
on it. But it makes a superb 
bouse. 

No -404b Fulham Road, SW6 
remains in use as an artist’s studio 
with u np retentious, semi-open plan 
bring space for one or two people 
and room for a possible extension. 
The glory of the garden is a fig tree. 
800 years old and said to be the 
oldest and largest in England. A 
Tree Preservation Order protects it 
The price for the Fig Tree Studio is 
£240,000 (from Aylesford). 

Farther out from cen tral Txtndnn 
is a studio at Eyot Green, W4, a 
side road off Chiswick Man opposite - 
Chiswick Eyot in the river Thames. 
(Walk along the mall and you have 
a fine view of the annual Oxford 
and Cambridge boat race.) 

Although it has two bedrooms 
and a bathroom on the ground 
floor, this is another proper studio 
with a huge space on the first floor 
where aQ of life can happen. Fox- 
tons is setting it for £175^000. 

■ Further information: ACME Hous- 
ing Association (081-981 6811); Ayles- 
ford (071-351 2383); Chesterfield 
(071-581 5234); De Groat Collis 
(071-352 1066 ) IT Egerton (071-584 7020); 
Foxtons (081-995 1221); Savins 
(071-221 1751); Strutt & Parker 
4071-2359959). - - 





* 





No 6 Stratford Sbxflos, west London an dtagantly mtmd, tate-lfith century atudfo 



Tuner worked bane (Robs Place, Chafsaa, west London 



No 28 Yeoman'* Row, west London: ktaaly placed for spiritual and material needs A C M E Sfudtoa; about C3B0-E4 per sq ft No 404b RAiam Road, west London: unpratanttouB and sand-open plan 


DHDON PROPERTY 




iel Smith 





Now available for sale, three previously rented townhouses at Chelsea Harbour, set in a 
traditional Chelsea and Belgravia style square. Each has four or five bedrooms, a 
'penthouse 1 studio room, garaging and a garden. Please call for details of these 
townhouses and the few remaining apartments from £236,000. 


Townhouse 13 - £590,000 
Townhouse 15 -£595,000 


Townhouse 17 - £590,000 
Leasehold 


Harbour Estates - 071-351 2300 
CHELSEA HARBOUR. LOTS ROAD, LONDON SW10 


• is i 0 b h i gj i 
i S n Un 8 0 


The present mansion of Albany, 
discreetly set back from 
Piccadilly, was built over the 
period 1771-1774. 

Two tanges of chambers built in 
1302-1803, stretch north m 
Buriingtoa Gardens. 

It is rare chat a freehold set of 
chambers is released onto the 
open, market. This set, once 
occupied by Lord Macaulay and 
Georgette Heyer, o&is some 
149 sqjn. (1,610 sq.ft.) of 
acco m mo dat ioo on two floors. 
Price on application 


ivtimatiomal 

071-730 0822 


London - Hampstead Area 
Lovely tree lined street. Beautifully 
renovated flu \ridi welco m i n g a imn « t<iiar . 

4 bedrooms, double steed reception room, 
fining room, kitchen fully equipped, 
bathroom. hallway and 2 separate wC. gas 
ch; well propontoned rooms with high 
npfliqpp. WeH nw'f ‘—H a mlna bmfcBng 
coca 1900. Located walking distance to 
shopping, tmtsportatioa and restaurants. 
LoHdmWPkcdmfal title. Owner sale. Woo 
£248400. WiH abo consider rental XStW pw 
elegantly famished, baby grand piano, 
Gsvpbcc. tmme«£iUfy available. 

TeL National : 0234 391581 
Fa* : 0234 391319 Inti : 44 234 39 1581 
Fto :44 234 391319 


QSKJBE CAHMQ SSWICE otasd by <Ml 
MtabWied ^dependent agency. Contact us 
wah w lanM or pwc wa raquh w*a 

BARBARA GI8SON PROPERTIES Teh 0ST 
3483064 fine 061 3483071 . 



FETTER LANE, EC4 
t Bed. 2 Bah. DU* leap Bn. kind pb block. 
Lift. pans. Lae 64 jmgM&OOO 
RIVERSIDE, El 

Hews of-Ibuer Bridge. 3 Bed, 2 Bate OH ar 
a QihwtaliDodtLse 118 pa. £310000 
aOLBOBN. WC1 

farth facing n wJ h f flat medooUacOnti 

MjooMsnnty.wci 

t Bed fliri tanall Hod. Isa 85 jol fjOOjOOO 
WO 





Elystan Place 
SW3' 

A well decorated widn dun average 
mm batmen earner bones dose to 

Gtebn Grata. 20 Bedfc3 e-e Min, 
CDs, 2 Recap*. Ktted KH, Bafccoy, 
ZS/PBooCTestacoL . 

Ftee^J3«yJI» 

CHELSEA OFFICE 
0715847020 


AMILTONS 




A substantial ground floor maisonnette with many period 
featnres, printed in good order with southerly views 
over commuaal gardens. 

Enhance Hall. 27’ Reception Room, Dining Boom, 

4 Bedrooms, 3 Bathrooms (2 kn suites), Guest Cloakroom, 
Fuu-Y Firnro Kitchen. Porto, Access to Communal Gardens. 
Arratox 2400 so. yr. (194 sc. mJ. 

94 year Lease £545,000 


Within metres of Hyde Park this freehold Grade 2 period house 
is presented in excellent decorative Older having been 
interior designed by Decorative Arts'. 

ENxaANca Hall, 4 BsczrnoN Rooms, 3 Bmeoous, 2 Bathrooms, 
Kuchin, Cloakroom, Rear Garden. Baloony, 
TfcuACE, jfrnsxmoNS. 
ftaaom £8Sfl^0M 




A rare opportunity to acquire a beautmiUy presentod 
maisonette extending over 3,000 sq. ft. (9i4 sq. m.) 
in award winning garden square. 

75* Efflonmac Hall, Drawing Room, Dinwg Room.SF 

KxrcBSdBuAKrACT Room, 4 Docrau: Bumooms, 4 Bathrooms, 
(all kn sornQ, Goasr Cloakroom, Fuvasx Fhxjnt and RSab 
Patio, O w tf&n tB RT RwgtANca^ Access to 2 Acre Communal 
- GdUBMNS^REStfiBifnl Pas