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True father 
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XX 


FINANCIAL TIMES 


Europe's Business Newspaper WEEKEND NOVEMBER 26/NOVEMBER 27 1994 DS523A 


Lira at record low 
as Berlusconi’s 
troubles mount 

The Italian lira hit a record low against the D-Mark 
yeste rday amid worries that the gov e rnment fart 
made c on c es sions to trade union s to avert a strike. 
The market was also nervous about the plight of 
emb a t t led prime mmictar Silvio Berlusconi, who 
faces interrogation - probably this weekend - 
about alleged corruption while be ran. bis Fininvest 

business empire. Page 28; Man in the News, Page 10 

Sony’s Marita steps down as chairman; 

Akio Morita, one of 
Japan’s most highly 
regarded businessmen, 
resigned as phairman of 
Sony yesterday on health 
grounds. Mr Marita, 73, 
wHl become honorary 
chairman of the com parry 
he coJbunded with 
Masaru Ibuka. While Mr 
Ibuka was the engineer- 
ing genius, Mr Morita is 
credited with building 
Sony into an international operation with annual 
sales of almost Y4.Q00bn ($40-63bn) a year. Page 13 

Bock's Advanta sells hotel cbadm Lonrho 
chief executive Dieter Bock's company Advanta 
Management sold its majority sfafrg in Kentpinski, 
the German hotel chain, to Thai hotel company 
Dusit Sindhorn. Mr Bock had promised to dispose of 
his outside interest Page 13 

Volkswagen stares dropped in Frankfurt as the 
company unveiled plans to sf aR h capital investment 
and reports started circulating about an internal 
profits forecast Page 13; World, stocks. Page 15 

Rwandan refugees killed: Zairean troops killed 
at least eight Rwandan refugees, tnchniing four 
children, when they opened fire at a camp north 
west of the Zairean border town of Goma. 

North WTest Water Group, Britain's second 
biggest water group, is linking up with Bechtel of 
the US to develop worldwide water and waste-water 
operations and create a substantial North American 
operation- Page 12 

Two ifie hi concert fire: Polish police believe 
arsonists may have started a fire which Miiad two 
and fcynred more than 200 people at a rock concert 
in the Gdansk shipyard. 

Iberia strike pressure mounts: Workers at 
Spain’s state airline Iberia disrupted flights, clashed 
with police in Madrid and threatened wildcat 
strikes n grf week nntem management withdraws 
an emergency job cuts plan. Page 2 

Austrian coalition formed: Austrian 
di^nmTin r Adg natfl Franz Vranttzky unveiled a 

third qufrawsgtTO ranlrHrcn hin 

Social Democrats mid the People’s Party and said 
the accord would lead to a sharp drop in the budget 
deficit Page 2 

Polls point to Dolors: European co mm i ssi on 
president Jacques Delors leads conservative pre- 
mier Edouard Balladur by 51 per cent to 49 per cent 
in fee French presidential race, according to the 
second opinion poll this week to put Delors ahead. 

Hong Kong inflation eases: Hang Kong is 
expecting its lowest annual inflation rate since 1988. 
The government reduced its inflation forecast from 
K5 per emit to 8 per cent, leaving predicted eco- 
nomic expansion unchanged at 5.7 pur cent. Page 3 

London shares ease at end of tad weolc 
FT-SE l OO Index 

Hourty movements. 

iitiLr— — 

— — — 

sub*:— ” 

aow 

3,020 •• -\H-V 

.'•"“'"a; HOSTS’ 

Sotxce* Reuter . 

almost 100 points on the week. Page 25; Lex; Page 28 

Few favour privatisation: Only 60 of the 15,400 
iespondents to the British government's consulta- 
tion paoer on the Post Office favoured privatisation, 
industry minister Tim Eggar disclosed. Page 6 

Ivory and Sbne, the Scottish hind manager, plans 

to reorganise its flagship Investment trust, British 
Asset Trust, whose Income has not been high 
enough to pay investors the high dividends they 
were promised. Page 28 


Recovery on Wall Street 
and some bullish com- 
ments from a UK securi- 
ties house helped raise 
spirits on the London 
stock market, where 
investors were unwiffing 
to commit themselves 
ahead of a key vote on 
the European finance bill 
on Monday. After faffing 
22 points at one stage, 
the FT-SE 100 share 
index closed only 3J 
lower at 3,0335, but that 
still meant a fall of 



Companies in this issue 


UK 

Abbey National 

Archer 

Asprey 

BSkyB 

BT 

Ban & Wallace 
Bristol Evening 
British Gas 
Cleveland Trust 
Comwefl Parker 
ORS Data 
Dart 

Renting High Income 
HaJttax 

Household Mortgage 
Ivory and Sima 
Latham (Jamas} 


12 
12 
12 
12 
11 
12 
12 
6 
12 
12 
12 
12 
12 
11.1 
12 
28 
12 
2a 1 


Leeds Permanent 
Lonrho 
McKechnie 
McLeod Russet 
NPC 

North West Water 
Rothmans tntrtf 
Stoddard Sekers 


West Water 


Austrafis Medfes 

Deutsche Telekom 

QWR 

Kemptostd 

Setta 

Skansta 

Sony 

VW 


11 

13 

12 

12 

28 

12 

12 

12 

12 

12 

12 

13 

2M*1 

12 

13 

13 

13 

13 

13 


For customer service and 
other general enquiries call: 


Frankfurt 
(69) 15685150 


Building societies’ merger will create unit with assets near £ 90 bn 


UN and 



Mike Blackburn, chief executive of the Halifax, outside its headquarters Pu»tA*«»oa*i 


By AUson Smith 

The Halifax and the Leeds, two of 
the UK’s largest budding societ- 
ies, have agreed to merge, then 
convert into a fully-fledged bank 
and a public limited company. 

The rteal is a significant move 
forward in the restructuring of 
the UK personal financial ser- 
vices industry. If it goes ahead, it 
will create the third-largest high 
street bank, with about £90bn in 
assets and a quarter of new mort- 
gages. 

Mr Jon Foulds, Halifax chair- 
man, said yesterday the societies 
had “the opportunity to create a 
Yorkshire based world-class 
alternative to the clearing 
banks”, which would continue to 
focus on savings, mortgages and 
insurance. 

In contrast to traditional soci- 
ety mergers, members wHl not 
benefit bom a bonus distribution 
of funds if the merger is 
approved. But they wifi later get 
shares in the new company. 

At today’s stock market values, 
t he combined organisation would 
have a market MpanHuatiiw of 
£8bn-£9bn, which would mean 
shares worth between £500 and 
£1,000 cm average for members. 

Under the merger, the Halifax 
will take over the Leeds, with the 
10m members of both societies 
voting an the deal in spring 1996. 
Then, if members approve in a 
second vote, the enlarged group 
will convert itself to a pic with a 
full firing licence. 

The new organisation win keep 
the Halifax name, chairman. 


cbie f executive and head office, 
five non-executive directors and 
two executive directors from the 
Leeds board will join the Halifax 
board, and some of Leeds’ prod- 
uct names - such as the Liquid 
Gold savings account - will be 
retained. 

At its annual general meeting 
this year, the Halifax aid it was 
seeking a merger with another 
society. The Leeds had been 
intending to merge with the 
National & Provincial building 
society but talks were called off 
in October 1993. It has been with- 
out a chief executive since Febru- 
ary 1993, when Mr Mike Black- 


InequalKy in the society 
wedding Page n 

bum left to become chief execu- 
tive of the Halifax. 

The deal must overcome sev- 
eral regulatory and legal hurdles 
in order to succeed. These 
include a decision by the Depart- 
ment of Trade and Industry 
about whether the merger should 
be referred to the Monopolies and 
Mergers Commission. 

The two societies have about 20 
per emit of outstanding UK mort- 
gage haianftfts, and about 24 per 
cent of new mortgage business. 
They are no longer offering new 
customers the opportunity to 
become members by opening 
savings accounts. New investors 
will be offered non-voting deposit 
accounts. 

The conversion would repre- 
sent the largest single extension 


of share ownership in the UK. It 
would be the first such move 
since Abbey National converted 
to pic status July 19©. 

Rival financial services execu- 
tives were divided yesterday 
about the impact of the merger 
on competition. Some societies 
argued that they would benefit 
more from the removal of Leeds, 


the fifih-largest society, as a sep- 
arate presence than they would 

lose from Halifax hpffftmfng- wnn 

larger. It is already almost twice 
the size of the next largest, 
Nationwide Building Society. 

Nonetheless, the deal may 
encourage other societies to press 
ahead with mergers. And it is 
likely to reignite interest in 


coverting to pic status and to 
intensify the search for cost 
savings. 

The overlap between the 1,100 
brandies of the two societies has 
already led to fears of Job losses 
among their 27,000 or so staff 
although the societies said they 
expected job losses to found 
through natural wastage. 


Hurd floats possibility of 


By Kevin Brown, 

Poetical Correspondent 

Mr Douglas Hurd, foreign 
secretary, floated the possibility 
of a referendum an further Euro- 
pean integration yesterday as 
rightwing Tory MPs claimed they 
had been threatened with dese- 
lection if they vote against the 
EU finance bilL 

Amid an increasingly bitter 
battle over Monday’s crucial sec- 
mid reading vote on the bill, min- 
isters said there was no prospect 
of a general election or a success- 
ful rightwing challenge to Mr 
John Major’s leadership of the 
Tory party. 

Frenzied head coanting at 


Westminster, indicated that 18 
Tbiy backbenchers - just enough 
to block the EU finance bill - had 
signed a rebel motion giving the 
Commons public accounts com- 
mittee power to block UK contri- 
butions to the EU budget 

And in a development certain 
to inflame Eurosceptic anger. Mr 
Harts van den Broek. EU commis- 
siqfaer for external political 
affairs, called for a new constitu- 
tional deal that would end the 
UK'S right to veto Anther inte- 
gration. 

Mr van den Broek said that 
four-fifths of the Ell's population 
and member states should have 
the right to over-ride national 
vetos. challenging the 36-year-old 


principle, that treaty changes 
must Save unanimous support 
Mr Hurd’s admission that a ref- 
erendum on further EU integra- 
tion had not been ruled out was 
seen as an a tte m pt to defuse the 


Call for EU progress — Pago 2 

Fayed cleared Page 6 

Strapped for credit — Page 10 
Lex Page 28 

European issue by suggesting 
that voters may have the final 
say. Mr Hurd said he was “tem- 
peramentally opposed” to refer 
endums, but only .parliament 
could decide whether to hold one. 
“It is a great mistake to say 


told BBC radio. Downing Street 
said ihp prime minister remained 
“sceptical” about referendum s. 
bat did not rule out the idea. 

A pledge of tough action 
against EU fraud will form the 
centrepiece of the government's 
defence of the finance bilL Poten- 
tial rebels said they were coming 
under intense pressure to fall 
into line before the vote. 

Mrs Teresa Gorman, MP for 
BiHerlcay, said that Conservative 
central office had threatened to 
disband her constituency party 
and install another candidate if it 
refused to deselect her. Central 
office said the party’s voluntary 


area cb^irrrten had simply 
arpHainiftfl the party’s rules to the 
constituencies. 

Underlining the government’s 
nervousness, Mr Michael 
Howard, the rightwing home sec- 
retary, warned that the party 
needed “unity and discipline.” 

• The Crown Prosecution Ser- 
vice yesterday cleared Mr 
Mohamad Fayed, the owner of 
Hairods, of allegations that he 
tried to blackmail the prime min- 
ister by threatening to disclose 
impropriety by ministers. 

Mr Fayed said he was “totally 
vindicated” and demanded an 
apology from Mr Major. Downing 
Street said there was “no ques- 
tion” of an apology. 


EU referendum 

never in this world and you will 
see I am not saying never ” he 


Nato fail 
to prevent 
Serb push 
into Bihac 

By Laura Saber In Belgrade 

Seib fighters and their allies in a 
renegade Moslem farce said they 
had advanced further into the 
town of Bihac last night, despite 
intensive mediation efforts by 
the United Nations and apparent 
fresh air action by Nato. 

First accounts conflicted on 
whether Nato aircraft had strode 
at targets or had merely buzzed 
Serb positions in the area. Offi- 
cials of the western alliance in 
Brussels declined immediately to 
confirm that any operation had 
taken place. 

The advance by Bosnian Serb 
ground forces into the poorly 
defended town centre, which is 
supposedly protected by UN reso- 
lutions, was reported by the Bel- 
grade news agency Tanjjug. Gen- 
eral Manojlo Milanovic, the 
Bosnian Serb chief of staff, 
demanded that the government 
army in Bihac surrender by this 
evening, warning: If yon don't 
listen to me, I cant guarantee 
your lives.” 

Fighters loyal to Hr Fikret 
Abdic, a maverick local Moslem 
leader who opposes the Sarajevo 
leadership, have been advancing 
on government positions in tan- 
dem with tiie Serbs. A radio sta- 
tion controlled by Mr Abdic said 
400 of Us men had entered Bihac 
town. 

Before the latest move forward 
was reported, the Serbs were 
said to be in control of about 
one-fifth of the rationally pro- 
tected zone consisting of Bihac 
town and its environs. 

The latest Serb advance fol- 
lowed the announcement by. the 
UN of a ceasefire in the Bihac 
area, and a day of bitter argu- 
ments between the UN and the 
Bosnian government as to bow 
badly and by whom it was being 
violated. 

The Bosnian government, ada- 
mant that the UN was faffing in 
its obligation to protect the 
town, said it was coming under 
heavy shellfire despite the trace. 

UN official* claimed that the 
ceasefire bad initially held out 
fairly well, and they accused the 
Bosnian army of firing out of the 
town with the intention of 


Continued cm Page 28 
UN and Nato struggle. Page 2 


Goldman Sachs wins role 
in Deutsche Telekom sale 


By Andrew Fisher in Frankfurt 
and M ichae l Undemann tai Bonn 

The German government 
yesterday named German and US 
banks to head the DM15bn 
(£6ul7bn) sale of shares in state- 
owned Deutsche Telekom, setting 
the stage for one of the world’s 
biggest equity issues. 

Mr Wolfgang BStsch, the postal 
minister, ended weeks of waiting 
with the announcement that 
Goldman Sachs, the US invest- 
ment bank, would join Deutsche 
Bank and Dresdner Bank as joint 
leaders of the global Issuing con- 
sortium after intense speculation 
over which foreign bank would 
play the most prominent role. 

With fees of about DM400m 
involved in the partial privatisa- 
tion - a quarter of the group will 


be sold in the first tranche early 
in 1996 - the issue attracted 
interest from 22 foreign banks. 

They were screened at a 
“beauty contest” in Bonn where 
they made presentations to gov- 
ernment and Deutsche Telekom 
officials in September. 

Goldman Sachs was considered 
the favourite, because of its per- 
formance in the contest, its tele- 
communications knowledge and 
its work with Deutsche Telekom 
on acquisitions. But other banks, 
notably Merrill Lynch of the US. 
were also in the running. Euro- 
pean banks lobbied hard, but 
unsuccessfully, for a British bank 
to be a co-leader. 

UK investors are expected to 
take up to DMSbn of the issue 
and the US market about the 
same. S.G. Warburg, the London- 


based investment bank, will head 
the UK consortium, whOe the US 
group leadership will be shared 
by Goldman Sachs, Deutsche 
Bank and Merrill Lynch. 

Deutsche Bank was given a 
more prominent role than many 
bankers expected, since it will be 
spokesman for the global consor- 
tium. It will also head the book- 
building operation in which 
investment demand is assessed 
and the issue price worked out 
“This takes the investment bank- 
ing activities of Deutsche Bank a 
huge step further,” said Mr Ron- 
aldo Schmitz, a director. 

The German bank surprised 
the Finunr.iai community a month 
ago by deciding to locate its main 
investment banking activities in 


Continued on Page 28 


STOCK MARKET INDICES 


FT-SE 100: 32332 

Yield 424 

FT-SE Eurotow* 100 

1.32B.77 

FT-SE-A AS-Share - 120923 

Nfldoel 1828623 

New York: 

Dow Jones Ind Awe 3,709.81 
S & P Composite 45ZS 


t-3.1) 


H.ia> 

HMW) 

t-34-31) 


■ US LUNCHTME RATES 

Federal Finds: 6>a% 

3-m Tress BHs: YkJ.. 5216% 

Long Bond S4A 

Yield .. 7231% 


(434.98) ■ NORTH SEA OB. (ArgasJ 

t*t57) Brent 15-day (Jan).... $17,175 


■ LONDON MONEY 

3-mo Interbank 6^% (6%) 

Ufle long g« fut_ Mar 10ZJ3 (Mart OS A) 


■ aOLD 

New Yak Comsxpsc) -.2384.7 
London - 238425 


(17.15) 


(384.7) 

(3842) 


New York lunchtime: 


s 

12625 


London: 


S 

12531 

fi-5621) 

DM 

24366 

(24338) 

FFr 

82716 

(82&09) 

SFr 

22643 

(2.0631) 

Y 

164275 

(153.78) 

C Index 792 

(76.8) 


■ DOLLAR 

New York lunchtime: 
DM 125676 
FFr 52S2S 
SFr 1221 

Y 98.755 
London: 

DM 12588 (12537} 
FFr 52558 $2372) 
SFT 12207 (12188) 

Y 96.706 (98235) 
S Index 622 (same) 
Tokyo doss Y 9823 


CONTENTS 


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Section 1 



Northern Lights 



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AlriCS RI2JW ~ ~ — ~ ~ 

fypB UTTMANOAL TIMES LIMITED 1994 No 32,534 Week No 47 LONDON - PARIS - FRANKFURT ■ HEW YORK ■ TOKYO 



"S 





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2 




FINANCIAL, TIMES 


WEEKEND NOVEMBER 26/NOVEMBER 27 : 1994 


NEWS: EUROPE 


Maastricht I UN and Nato in struggle over 


speech adds 
to EU row 


By Brace Clark, Diplomatic 
Correspondent 


By Uonei Barber in Brussels 


Mr Hans van den Broek, EU 
commissioner for external 
political affairs, has risked 
inflaming divisions in the rul- 
ing Conservative party in 
Britain with a call for weaken- 
ing national veto powers In the 
European Union. 

Mr van den Broek, who will 
assume wider authority in 
external - relations in the 
incoming Commission of Mr 
Jacques Santer of Luxembourg 
- successor to Mr Jacques 
Delors, who leaves the presi- 
dency of the European Com- 
mission in January - said it 
was time to consider new con- 
stitutional arrangements to 
allow a vanguard of integra- 
tjonis t- mlnde d states to move 
ahead in a multi-speed Europe. 

He suggested that changes in 
the Maastricht Rome or other 
EU treaties should enter into 
force when four-fifths of the 
EEFs population and member 
states have ratified - a chal- 
lenge to the 36-year-old princi- 
ple that treaty changes must 
be unanimous. 

Mr van den Broek’s speech, 
in the Hague on Thursday 
night, came at the end of a 
turbulent week in British poli- 
tics, with the UK government 
threa tening to call an election 
if it loses a parliamentary vote 
next Monday on raising UK 
contributions to the EU bud- 
get 

His thoughts reflect broad 
but by no means overwhelm- 
ing sentiment among govern- 
ments in Germany, the Bene- 
lux countries, and. to a degree. 
France, in favour of a multi- 
speed Europe built around an 
inner core of committed into- 
grattonists. 

Aides said the speech would 
serve as a marker ahead of the 
1996 inter-governmental confer- 
ence to review the Maastricht 
treaty, but British officials 
noted that the Dutch commis- 
sioner had touched “the most 
neuralgic point’' of the Rome 
treaty. Others warned that for- 
cing the pace of integration by 
diluting national veto powers 


could “break the Union". 
According to a text distributed 
in Brussels yesterday, Mr van 
den Broek said: 1 believe that 
the majority view in the Union 
is that all members should 
move ahead together wherever 
possible - but if a smaller 
group wish to push ahead 
towards closer integration then 
they should be allowed to do 
so.” 

In a side-swipe at Britain and 
Denmark, who won opt-outs in 
the 1991 Maastricht treaty on 
monetary union, Mr van den 
Broek said: “A few years ago 
some member states were com- 
peting for opt-outs. Now, the 
competition should be for opt- 
lns. n Last month. Mr Jean-Luc 
Dehaene, the Belgian prime 
minister, called for an exten- 
sion of majority voting, declar- 
ing that the need for unanim- 
ity and the exercise of national 
vetoes could lead only to block- 
ing effective action. 

Mr Dehaene proposed that 
the Co mmiss ion should decide 
which countries met the condi- 
tions for a multi-speed 
approach, with a final decision 
made by a qualified majority of 
member states. 

Despite these interventions, 
senior British officials remain , 
confident that the 1996 confer- 1 
ence will not lead to wholesale i 
revisions in the Maastricht 
treaty and a substantial weak- 
ening of veto powers. 

In the UK government's 
view, France remains the 
swing country in 1996. Official 
predictions assume that a sov- 
ereignty-conscious French gov- 
ernment will resist German 
pressure to form a genuine 
European political union with 
the Commission as the new 
executive government of 
Europe. 

However, there is some con- 
cern about the possibility that 
Mr Delors may enter and win 
next year's presidential race in 
France. The prospect of Mr 
Delors joining Chancellor Hel- 
mut Kohl of Germany in a 
re invigorated Franco-German 
axis is not viewed with relish 
in London. 


The UN has in effect 
recaptured from Nato the main 
diplomatic Initiative over the 
Bosnian conflict, in a fresh set- 
back for the prestige of the 
Atlan tic alliance. 

The pivotal role of the UN 
was Illustrated yesterday by 
the mediation efforts of Gen- 
eral Sir Michael Rose, UN com- 
mander in Bosnia, and a com- 
ment from Mr Boutros Boutros 
Ghali, the UN secretary gen- 
eral, that he was in touch with 
all the warring parties. 

Shrugging some off some 
harsh criticism from Bosnia’s 
Moslem-led government, the 
British general yesterday took 
advantage of the apparent 
exhaustion - however tempo- 
rary - of both parties in the 
Bihac enclave to broker a 
ceasefire. 

Having captured such strate- 
gic positions as the Grabez pla- 
teau and the Debeljac hill, the 
Serbs may have calculated that 
they had little need to advance 
any further into the town, 
while the Bosnian army was in 
severe need of a breathing 
space after two weeks of con- 
tinuous setbacks. 

The visibility of the Britisb 
UN commander pointed to a 
renewed emphasis on prag- 
matic, ad hoc mediation efforts 
- which avoid passing judg- 
ment on the parties - and a 
setback for the interventionist 
philosophy which the US has 
urged on its Nato partners. 
Nato ambassadors foiled on 
Thursday to reach agreement 
on a US plan for demilitarising 
the Bihac area, and they said 



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aw 

mm 



Defender A French UN soldier patrolling the area around Sarajevo airport yesterday as peace negotiations- took place 


they were referring the pro- 
posal to the UN for further 
elaboration. 

There was little sign, how- 
ever. of that elaboration taking 
place yesterday because the 
problem raised by France over 
the US proposal - the lack of 
ground troops to oversee demi- 
litarisation - seems a virtually 
insoluble one. 

It was becoming clearer that 


the US hopes of a Nato impri- 
matur for firm intervention in 
the conflict, with tough use of 
air power to shore up the mili- 
tary fortunes of the Bosnian 
government, have effectively 
been dashed. 

Mr Willy Claes, the new sec- 
retary-general of Nato, 
acknowledged yesterday that 
he was disappointed by the 
allies' failure to agree. “They 


should have been able to push 
further,” he said. 

Yesterday's developments 
were only the latest in a series 
of setbacks to the prestige of 
Nato's political machinery. 

In theory, the US should 
always find it easier to win 
approval for its policies in 
Nato - where it is by for the 
biggest military power - than 
in the UN, a where it has to 


contend with the influence of 
Russia and China. 

But last week, as air attacks 
from Serb-held Croatia brought 
the Bihac crisis to a head, US 
diplomacy- appeared to be 
homing in more strongly 
on the UN, where the security 
council passed an emergency 
resolution late last 
Saturday. 

US - officials are understood . 


to havehad some&ankdiacns. 
sions with Mfr Boutros: Ghali 
about the need! for -tougher 
action in Bosnia..;-: / .. ' .>• ' 

'The. recent electoral victories 
for the Republicans in the-DS ; 
have, increased the pressure for 
an outright lifting of.thejanna 
embargo against Bosnia.-*- 
sometMng, that wmld almost ! 
certainly make the /UN’S con-, 
tinned presence in the republic 
untenable mid force a humflfafr 
Log withdrawal- - . : ‘ 

Mr BoutooiGhah isTKiievea 

to be well aware of tirat cflns&fr 
eratidn as heJornmlate^tw^cy - 
towards- Bosnia ami tru$>io 
head off the danger that peace-; 
keeping to ' fanner . Yugoslavia 
will mid in ' the same humfl&t- . ; 
ing way as the UN missian'ttv 
Somalia. ■ 7 

The secretory’generalihas 
other factors to. take into.' 
account, including the delicacy 
of the situation on the ground, 

and the impossMEty of iater-; 

vening with air strikes:., in.' 
hand-to-hand fighting. . 


Russian duma deflects budget row 


By John Lloyd In Moscow 


The Russian parliament last 
night stepped back from con- 
frontation with the govern- 
ment over the budget by call- 
ing for a “conciliation 
commission” to “check on the 
basic figures’* of next year's 
budget before a vote is taken. 
The commission is due to 
report by December 10. 

However, the debate yester- 
day in the state duma (lower 
house) and comments by lead- 
ing deputies leave little doubt 
that the budget as it stands - 


promoted by the government 
as a strategy which will 
finally puncture bigh inflation 
and stabilise the rouble - 
would be voted down by the 
duma. According to Mr Mik- 
hail Zadornov, chairman of 
the duma budget committee, 
only the liberal Russia’s 
Choice party led by Mr Yegor 
Gaidar would vote for it. 

The government has made 
clear it is open to proposals to 
tinker with the figures, but 
will reject all efforts at strate- 
gic shifts. The budget envis- 
ages no central bank credits 


for the government next year, 
the sale of a massive 
Rbs70,000bn worth of treasury 
bills, and support, largely 
from the International Mone- 
tary Fund, of nearly S13tm 
(£8bn) - at the present 
exchange rate, aroond one 
third of the projected yearly 
income. 

Mr Zadornov attacked each 
part of the budget strategy. He 
said treasury bills would not 
be sold in large amounts at a 
time of high inflation, that the 
projected level of taxes could 
not be gathered and that the 


projected level of expenditure 
was for too low given commit- 
ments already made and debts 
which had to be paid. 

Mr Vladimir Panskov, the 
new finance minister, yester- 
day revealed the parlous state 
of the government’s finances .- 
admitting that it could not pay 
Rbs3,OO0bu it owes to defence 
equipment companies. How- 
ever, he said that the nearly 
Rbs2.000im debt owed in back 
wages to state employees had 
been reduced to Rbs600bn. 

The discussions are now 
very bitter. Mr Alexander 


Pochinok, the Russia's Choice 
member who is deputy chair- 
man of the budget committee, 
yesterday attacked Mr Zador- 
nov and other leading mem- 
bers for refostng to realise 
how essential the budget was 
to save the country from con- 
tinuing decline. 

To derision from his. col-, 
leagues and from many of the 
press, Mr Pochinok said: “If 
we want to live reasonably, we 
have to learn how to produce 
and how to selL People buy 
imported goods because they 
are better - it's that simple. " 


hit by 
protests 


By Tom Bums In Madrid 


We help 


Make the most out 
of working abroad 


Expatriates 

a 


Western interest fails 


Flight . cancellations, delays 
and scattered dashes between 
ground staff of the .state-owned 
Iberia airline and police yester- 
day at Madrid’s Barajas airport 
were a foretaste of the chaos 
that could affli ct air traffic to 
Spain in the days ahead. 


No maUcr where in the world you're working, you will 
want to be kept await: of the opportunities - and the 
pitfalls * that every expatriate lace!.. Every month of the 
yc-.tr Resident Abroad brings von die latest news, views 
and practical help on living and working abroad - plus it 
keeps you in touch with what's happening back home. 


Resident Abroad is published by die Financial Times, 
and draws upon the FTs wealth of inhumation and 
resource* to provide invaluable cunnnem and accurate 
data on the most important issues facing expatriates 
today - making Resident Abroad indispensable if you 
want to stay ahead of the expatriate game. 


Make the most of your money 
If you check out our in-dcptli, but easy to read, 
coverage or the latest iim-suneni products, offshore 
banking, tax arhan luges, world stock, markets, domicile 
issue* and other expatriates' experiences, you will 
quickly discover why Resident Ahmad is essential 
reading when you live or work -Abroad. 



to allay Gazprom fears 


By John Lloyd 



Make the most of your time 

You can also catch up on property prices in the UK a* 
well as peruse features on comparative tiring costs, 
motoring, boating, holidays and in formal ion on schools 
for the children. You can discover the customs and 
cultures of different countries and find wstvs for you and 
your family to enjov vour lelstux- time together. And 
there's much, much more 10 enjoy - in cvciy ira gff ! 





FREE A-Z FINANCIAL GUIDE 
Reply within 14 days and yon gel the bonus of a free 
A-Z guide especially written (o help you through the 
financial jargon maze. All the buzz words and 
technical phrases arc explained, enabling you In 
make the most of the financial sections. 


The foreign appetite for shares 
in Gazprom, the Russian gas 
monopoly which is the world's 
largest supplier and the coun- 
try's biggest company, has cre- 
ated huge disparities In its 
market price ahead of the sale 
of 9 per cent of its stock to 
international investors, 
planned to take place by the 
end of the year. 

The price of Gazprom shares 
quoted on the Vladivostok 
stock exchange has soared to 
Rbsl5,510, according to 
Gazprom officials. This is more 
than 17 times greater than the 
RbsSSQ quoted by Moscow bro- 
kers, and reflects the fact that 
foreign investors, who can 
trade on the Vladivostok 
exchange following a test offer- 
ing last month, are pushing up 
the price. 

The Vladivostok price would 
mean that the 9 per cent 
offered abroad would be worth 
around $10bn i£6bn) - on tbe 
Moscow price it would be 
worth under $600m. However, 
both prices are highly artifi- 
cial. since nothing is known of 
how the shares will be offered, 
and there are doubts surround 


the title to any future shares 
and even about whether 
Gazprom has the right to sell 
them to foreigners. 

Gazprom is, after the oil 
companies, the largest earner 
of bard currency for Russia. Its 
annual contract with the Ger- 
man company Ruhrgas - its 
largest foreign client - is worth 
DM2.6bn (Elbn) a year. 

However, according to bro- 
kers and financial executives 
in Moscow yesterday, the 
doubts surrounding the shares 
may mean that the price will 
be lower than Gazprom is hop- 
ing for - though they concede 
that a company as potentially 
rich as this may be forgiven a 
good deal of uncertainty- Klein- 
wort Benson, the London mer- 
chant bank handling the sale, 
refuses to give any details, cit- 
ing the need to observe US leg-- 
islation on non-disclosure of 
information before a sale. 

The problems cited by the 
Moscow analysts are: 

• Lack of information on how 
the shares are to be offered - 
whether to chosen investors or 
sold freely. 

• Lack of ability to prove title 
to the shares - which, though 
they have a price, are barely 


traded outside Vladivostok. 

• A clause in the company’s 
charter which forbids it to sell 
shares to foreigners. Though it 
can probably circumvent the 
clause by creating a special 
class of foreign shares, it might 
leave itself open to legal chal- 
lenge. 

• Though its reserves are vast 
- estimated to be worth 
between $1500bn to $2,000bn - 
it is subject to Russian govern- 
ment policy of controlling 
energy prices and cannot col- 
lect some of its largest debts, 
from other former Soviet 
republics. 

Gazprom has received sub- 
stantial credits from the Italian 
and German credit agencies, 
but in both cases can offer gas 
supplied to these countries as 
collateral. 

The European Bank for 
Reconstruction and Develop- 
ment is working with the com- 
pany on an ambitious plan to 
identify investment opportuni- 
ties on its 220.000km of pipeline 
but has as yet not decided to 
invest in the company. 

By contrast Lukoil, the next 
biggest energy company, has 
delayed its stock offer to dem- 
onstrate accounts diligence. 


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IV.nr uinra hi Re»hkni Abroad 5ubKrifXHM DrpL PO Bus Ml brain BK2 WTUK 


Austria’s new coalition 


agrees big spending cuts 


Some 30 Madrid-Barcelona 
shuttle service and. other morn- 
ing rush-hour flights to Spain's 
main cities were grounded as 
police took four hours to 
restore calm to the domestic 
terminal At several airports, 
works committees began sit- 
ins. 

International flights were 
not affected yesterday but air- 
lines were bracing themselves 
for a worsening situation next 
week. “We’re not cancelling 
anything at this stage and 
well just have to wait and 
see,” said Air France. 

Yesterday's incidents were 
caused by Iberia employees 
a ffi li a ted to minority unions.. 
The disruptions are likely to 
increase on Monday when the 
main unions will join the pro- 
test against a drastic restruct- 
uring plan drawn up by the 
management that involves 
redundancy notices for 20 per 
cent of the company's 25,000 
employees and the sell-off of 
most subsidiaries. 

The powerful Iberia pilots 
union, which had so for stood 
back from the dispute, said It 
would support strike action 
and^ would also take the air- 
line's management to court if 
it pressed ahead with the 
break-up of the company. 

The main concern is that 
wildcat action could dose 
domestic airports. Extremists 
mre calling on Iberia employees 
to block runways and to cause 
disruptions similar to those 
during the violent Air France 
strike a year ago. 

The airline is expected to 
lose Pta44bn (£218m) and it 
could face bankruptcy next 
year unless it severely reduces 
its costs and raises fresh capi- 
tal through disposals. 


By Eric Frey in Vienna 


inni Hi Hcwdcn I Abroad S uto c iq Xiog PryL TO Bu» Ml braki BIG WTUI^ 


FINANCIAL TIMES 



Seven weeks after suffering 
big losses at the hands of disil- 
lusioned voters, Austria's two 
main parties agreed yesterday 
to form a new coalition gov- 
ernment and make large cuts 
in government spending. 

Weathering protests by 
trade union and various inter- 
ests groups, the Social Demo- 
cratic party and the conserva- 
tive People’s party agreed to 
cut spending by Scb250bn 
(£14.5bn) over four years, cur- 
tail several social programmes 
and make some steps toward 
more flexible labour laws. 

fn an all-night negotiating 
session, the two parties 
resisted pressures to drop key 
parts of their austerity plan, 
but left some details open for 
future talks with the trade 
unions. If fully implemented, 
the cuts would mark a signifi- 
cant departure from Austrian 


traditional policies of big gov- 
ernment spending and gener- 
ous social benefits. 

Chancellor Franz Vranitzky, 
a Social Democrat, and conser- 
vative leader Erhard Busek 
are hoping to rednee the bud- 
get deficit, which is projected 
at Schll7bn next year, and 
bring it in line with the con- 
vergence criteria of the Maas- 
tricht treaty. Austria will join 
the European Union on Janu- 
ary l and wants to be fn the 
core group for monetary 
union. 

Among the most painful 
measures is a pledge to limit 
pablic sector pay rises to 2 per 
cent in 1995, below the proj- 
ected inflation rate of 2J5 per 
cent 

The key positions in the new 
cabinet will remain 
unchanged, however, despite 
promises of a new start and a 
reshuffle by both parties. In 
tbe elections last month, the 


Social Democrats dropped 
from 80 seats to 65 seats in the 
183-seat parliament, and the 
conservatives fell from 60 to 
52 seats. The big winner was 
the right-wing Freedom party 
which capitalised on voter disl 
illusion meat with tbe abuse of 
power and patronage by the 
governing parties. It gained 
nme seats to 42 seats. 

The Freedom party leader, 
the charismatic Mr JOrg 
Haider, is hoping to break the 
coalition before its regular 
term ends in 1998 and become 
chancellor after the next elec- 
tions. Public discontent with 
the spending cuts could hurt 
the governing parties in the 
short term. 

But the accord should also 
help maintain market confi- 
deuce in the Austrian economy 
and its currency. The two par- 
ties also resolved a dispute 
over who should be in charm* 1 
of EU policy. 8 I 


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FINANCIAL TIMES WEEKEND NOVEMBER 26/NOVEMBER 27 1994 


3 


★ 

NEWS: INTERNATIONAL 


INTERNATIONAL NEWS DIGEST 



US opens Cuba 
phone lines 

Direct-dial telephone service opened last night between the US 
and Cuba for the first time in 30 years. Both AT&T and MCI 
ware due to open telephone ifapg to Cuba yesterday ev ening , 
offering a much easier and cheaper service to Cuban exiles, 
who have had to resort to special services in Canada and Italy 
to get around a bottleneck that restricted the number of call" 
to the Caribbean inland 

Telephone service is the one si gnifican t area in which the 
US has wanted to ease its long-s tanding embargo against the 
government of President Fidel Castro. The 1992 Cuban Democ- 
racy Act, which otherwise tightened the embargo, offered new 
oppor tunities to improve telecommunications links. 

Much of Cuba's telecommunications equipment dates from 
the 1920s, and only an estimated l per cent of the 60m calls 
placed from the US to Cuba go through. But upgrading the 
link has been complicated by disputes over how to handle 
Cuba's share of the revenue from telephone calls. George 
Graham. Washington 

Nicaragua reforms constitution 

The Nicaraguan congress 
has approved constitutional 
reforms which ban close rela- 
tives of President VToIeta 
Chamorro (left) from standing 
for the presidency, in a move 
to shift powers from the exec- 
utive to parliament. The 
reforms, which allow for a 
second but not consecutive 
presidential term, are a defeat 
for Ms Chamorro's son-in-law, 
Mr Antonio Lacayo, the min- 
ister of the presidency and de 
facto prime minister. He was 
hoping to stand for president 
in May 1996. 

The vote means the hard- 
line S andinis ta leader and for- 
mer president Mr Daniel Ortega may stand in 1996. But his 
plan to negotiate with Mr Lacayo the removal of the consan- 
guinity ban - in exchange for a law to legalise Sandinista 
ownership of some properties confiscated during the party’s 
1979-90 administration - has been scuppered. It was supported 
by 32 moderate Sandinista congressman out of a total of 39, in 
defiance of Mr Ortega and the Sandinteta assembly. “This is 
an enormous political defeat for Daniel Ortega and Antonio 
Lacayo," says Mr Carlos Ttmnerman, a former Sandinista 
ambassador to Washington- who has left the party. "The 
division in the party is irreconcilable and a split is inevitable." 

The vote cuts the presidential term from six to five years, 
obliges the government to seek congressional approval for 
international loans and trade negotiations, and malra the 
army more accountable to dvfl authority. Bduxzrd Orlebar, 
Guatemala City 

Oslo to plug oil tax loophole 

Norway yesterday announced a controversial plan to plug a 
loophole in the petroleum tax regime which it says has cost 
state coffers losses estimated at NKr300m (£28m) a year in 
inflated profit repatriation by foreign oil companies. The state 
accuses oil companies of boosting profit repatriation by build- 
ing up debt in their Norwegian subsidiaries and offsetting the 
financing costs against local taxes. The flnano* ministry pro- 
posal would require the companies to maintain their equity 
capital at a minimum of 20 per cent or be penalised by higher 
taxea 

The so-caBed "than, capitalisation rule” will be retroactive to 
the beginning of 1994 if it is approved by parliament "The 
proposition means that a higher equity capital share than 20 
per cent mil have consequences for taxation since the rights 
to deduct net financial costs will be limited in proportion to a 
mindrmmi debt ratio of 80 per cent,” the ministry said. Karen 
FossH, Oslo 

West German inflation slows 

The annnai inflation rate to west Germany slowed from 2A per 
emit to 2j6 per cent in the month to mid-November, according 
to preliminary data from the federal statistics office yesterday. 
With prices continuing to stabilise, and a strong D-Mark 
defending the economy against imported inflation, economists 
suggested the Bundesbank still had room to reduce its 
short-term interest rates. Meanwhile, central bank data issued 
yesterday showed that a deficit of DM7.7bn (£3.14bn) on the 
pan-German services trade balance made the largest contribu- 
tion to an unexpectedly big total current account deficit of 
DM5.2bn during September. The aggregate deficit for the first 
three quarters of the year rose accordingly to DM4l9bn. 
Visible imports, up 5J5 per cent, grew more than forecast; 
leaving the trade surplus at DM5.8bn, down from DM7Jbn in 
August Christopher Parkas, Frankfurt 
• Mr Horst Schulmann, a Bundesbank council member and 
president of the regional central bank to the state of Hesse, 
has died. He had been 01 for some time. Reuter, Frankfurt 

Tanzanian minister ‘must go’ 

The International Monetary Fund and World Bank have told 
Tanzania's government its finance minister should be 
removed, officials to Dar es Salaam said yesterday. They said 
IMF and World Bank representatives said the scheduling of a 
new meeting of Paris Club creditor countries and the resump- 
tion of aid by Norway and Sweden depended on Mr Kigoma 

Mabma’s departure. _ . . . . 

President Ali Hassan Mwxnyi last week appealed to donors 
and international agencies to keep giving his government aid 
during an official investigation into rampant tax evasion, 
which cost an estimated 5125m (£763m) to lost revenues last 
year Sweden and Norway froze a total of $2&5m in aid to 
Tanzania last week, citing concern at tiie evasiim. 

The said foreign donors had reserved the right to 

commission an independent audit on the report on the tax 
evasion investigation being carried out by the controller and 
auditor general. Other donors could suspend aid as Norway 
and Sweden have done if the president ignored this condition, 
they added. Reuter, Dares Salaam 

Australian strikes begin 

top wave of industrial action threatened by some large union 
SSlSSm in Australia goL under troy yesteriay. About L500 
rn^tereof the Transport Workers’ Union, which Is pursuing 
fSoercSt wage claim to be spread ova r two years, decided 
L rfrncfi over the weekend. Their action is targeted at super- 
H^kets, and is expected to leave many stores without food or 

“rWsMuld be followed by a 24-bour strike by aircraft: refoeH- 
prsand oil tanker drivers on Monday. The federal Industrial 
Si Commission rated yesterday that the TWUwas 
SSgSto avoid enterprise bargaining & todmg aj&*ar- 
SSrSy claim, and withdrew the unfoa'srtgfat to strike on 
^f^Wwithout risking heavy fines. Despite this, there were 
that workers stfll plan to go ah ead with the action. 
w+hifjwdiandaM take place, it is expected severely to disrupt 
“^^^SSrnational airline services. NUdd Tail, Sydney 

Court reprieve for Tapie 

Mr Bernard Tapie. the French bustoesmmn«litidan, yester- 
Mr aer ZZ r«w davs' reprieve when tbe Pans commercial court 
daywona hnday its examination of whether his compa- 
be placed undo' court administration, a possible 

main ha2jier ' ***** A* iss» 

Crtdlt J J hS^Stoi the account of Bernard Tapie Finance, 
last week oy u w bich controls La Vie Claire, a chain of 

theho^^S^anfl Testut and Temuflon, which makes 


No room in the Vietnamese inns 

Scarce accommodation hinders business stormtroopers, writes Kieran Cooke 



Building Is going on apace but several projects have had to be abandoned 


A serviced apartment 
building Is going up on 
the shore of Hanoi's 
fiunous Ho Thy or West T-airp 
The price for a spacious, but by 
no means luxurious, two-bed- 
roomed flat is $84)00 (£5,000) a 
month,- plus some service 
charges. 

The rush to Vietnam is on. 
Encouraged by the lifting of 
the US trade embargo this 
year, foreigners are charging 
into Vietnam to ever greater 
numbers, seeking business 
opportunities on what many 
see as Asia's new frontier. 

But there is little room for 
these stormtroopers of the 
business world. Hotels in both 
Hanoi and Ho Chi Minh City 
(the former Saigon) are often 
booked out months in advance. 
Room rates, although not nec- 
essarily facilities and service, 
are equivalent to Singapore or 
Sydney. Tourist arrivals have 
gone up from 250,000 in 1990 to 
a forecast of nearly Im this 
year. 

The pressure on accommoda- 
tion is immense. "It's a bizarre 
situation,” said one Hanoi- 
based foreign oil company 
manager. 

“I'm living in a city which 
has 1930s facilities but I'm pay- 
ing modern-day Hong Kong 
rents." 

Property developers, led by 
Singaporean, Malaysian and 
Hong Kong-based companies, 
have moved in to take advan- 
tage of the dramatic upswing 
to the number of people seek- 
ing not only hotel accommoda- 
tion but homes and offices for 
rent According to official fig- 
ures, 95 joint local /foreign 
hotel projects worth a total of 
nearly $2bn have been 
approved over the last two 
years. 

Piling machines are making 
their way down Hanoi's nar- 
row streets. Crazies dot the Ho 
Chi Minh city skyline. But the 
developers are not having an 
easy time. 

One of the first problems any 
investor in Vietnam faces is 
the lack of a comprehensive 
system of commercial regula- 


Hong Kokig: inflation 

Annuo! % change . 


•14 



Source: Bataa n e arn 


Inflation 
in HK at 
lowest in 
six years 


tions and law. Developers find 
that under Vietnamese law all 
land belongs to the state and 
cannot be sold. 

Establishing title to land 
involves lengthy negotiations 
with numerous, often compet- 
ing, authorities, including 
politically powerful local peo- 
ple's committees. Local estate 
agents may claim to have 
rights to the land they are sell- 
ing but, in fact, they often 
have only doctored papers 
which one government depart- 
ment may accept and another 
reject 

Nonetheless, local specula- 
tors have used gold stashed 
away during recent years or 
money from relatives overseas 
to gain control erf property in 
the hope of a foreign rush for 


By WIBiam Dawkins In Tokyo 

Japan’s upper house of 
parliament yesterday gave 
final approval, as expected, for 
tax reforms to stimulate the 
weak recovery in the short 
term and restrain growth in 
state borrowing after 1997. 

This fulfils a promise made 
by prime minister Tomiichi 
Murayama at the Group of 
Seven summit to July to cut 
income tax as a means to 
encourage more Japanese to 
buy imported goods and lower 
the world’s largest and most 
politically contentious trade 
surplus. 

The first part of the package 
consists of Y16£00bn (£107bn) 
of income tax cuts spread over 


land and building space. 

Mr Huynh Bmi Son, deputy 
director of the Saigon Bank for 
Industry and Trade, says that 
prices to parts of Ho Chi Minh 
City have peaked. "Some local 
banks which have supported 
the speculators are going to get 
into trouble. Locals who 
bought at inflated prices now 
can't find buyers for their 
property." 

With the absence of a proper 
land title system and no mort- 
gage laws, foreign developers 
find that their banks are often 
unw illing to offer financing to 

such an uncertain market. 
Instead, companies have to 
rely on their own cash 
reserves. 

Having found a site to 
develop, the next problem is 


the next three years, worth 
Y5,5Q0bn annually. Of the 
annual total. Y3£00bn will con- 
tinue after 1997 as a permanent 
reduction. 

In the second stage of tax 
reform, starting to the fiscal 
year beginning April 1997, 
sales tax will rise from its 
internationally low 3 per cent 
to 5 per cent. This is needed to 
finance the tax cuts, and over 
the longer term compensate for 
the shrinkage to the income 
tax base caused by Japan’s 
fast- ageing population profile. 

The sales tax rise is smaller 
than the fiscally conservative 
finance ministry had wanted, 
because of its obvious political 
unpopularity. However, a 
clause in yesterday’s tax bill 


compensation and resettlement 
for those living there. Hanoi 
and Hon Chi Minh (Sty are two 
of the most densely populated 
urban centres in Asia; the den- 
sity to parts of Ho Chi Mmh 
City is greater than in Hong 
Kong, while Hanoi's population 
has risen from 500,000 inhabit- 
ants to the 1950s to more than 
3m today. 

Foreign developers, as well 
as diplomatic missions and 
company executives, have been 
keen to renovate and rent 
some of Hanoi’s crumbling 
French colonial-style villas. 
The authorities give the 
go-ahead but say those inhabit- 
ing such properties must be 
compensated. 

That can be an expensive 
proposition. The authorities 


empowers the government to 
raise sales tax by more than 5 
points, depending on tbe state 
of the economy and adminis- 
trative spending. 

To win support, even for the 
smaller figure, from members 
of the three-party ruling coali- 
tion, Mr Murayama promised 
to cut spending on tbe public 
administration. IBs govern- 
ment reiterated that pledge 
yesterday. It planned to pro- 
duce by the end of March a list 
of state bodies due to be 
slimmed, merged or closed, 
said Mr Masahiko Komura, 
director general of the Eco- 
nomic Planning Agency. 

• Consumer prices in 
Tokyo, an early indicator of 
nationwide inflation, rose 1.1 


recently found that more than 
LOOP families were living in 150 
villas to the centre of Hanoi 
Compensation ciptyift are often 
grossly inflated. 

Several foreign-backed pro- 
jects have either been aban- 
doned or are still only in the 
planning stage. Work on a 
French/Vtetnamese joint ven- 
ture project to build a hotel 
near the site of the Hanoi 
Opera House has still not 
started, nearly two years after 
winning initial approval from 
the authorities. A Scandtoa- 
vian/V ietnamese venture to 
build a hotel near the city’s 
T ^ntn Park hag apparently run 
into finawnmg iMffirtnltfog 

The 563m New World to Ho 
Chi Minh City, described as the 
southern city's largest luxury 
hotel, finally opened in Octo- 
ber after six years of squabbl- 
ing over land agreements and 
compensation daiimi- 

Some Vietnamese are wary 
of the foreign property develop- 
ers. Officials ins is t thn* they do 
not want Hanoi or Ho Chi 
Minh City to fall into the same 
haphazard development cycle 
as cities like Bangkok. Some 
criticise the wnphagfa on lux- 
ury hotels and resorts, out of 
reach of all but a small minor- 
ity of Vietnamese, while form- 
era have objected to precious 
agricultural land and water 
resources being used for golf 
courses. 

Mr Peter Purcell, an Austra- 
lian property developer, is 
managing a project to build an 
exclusive recreation club on 
the shore of Hanoi's West 

Take Al thoug h h niMing nn the 

project has yet to start, compa- 
nies are already advancing 
$15,000 membership fees. 

Several luxury hotel develop- 
ments are planned nearby. 
"Things take longer to do 
here," says Mr Purcell. “It's 
not like Singapore or Malaysia, 
where, if the authorities tell 
people to move off the land, 
that's it. Even tbe lowliest 
worker has a say. Small-scale 
projects are fine but I’d be 
wary of getting involved to any 
big property deal” 


per cent to November from the 
same month a year ago. How- 
ever, most of that was caused 
by a freak rise to food prices. 

Taking out food, the core 
Tokyo inflation rate was a 
mere 0J5 per cent year-on-year, 
down 0 j. per cent on October, 
ronfliming inflation c ontinu es 
to be almost nonexistent 

One reason for this is the 
pressure on prices from bar- 
gain-conscious consumers, 
shown yesterday by a 2.6 per 
emit year-on-year foil in depart- 
ment store sales in October, 
the 32nd consecutive month of 
decline. Bu si ness, meanwhile, 
is expanding fast at discount 
supermarkets, opening up at a 
rate of 80 per month nation- 
wide. 


S Korean 
opposition 
chief quits 
parliament 

By John Burton in Seoul 

Mr Lee Kt-teek, South Korea’s 
main opposition leader, 
j resigned Us parliamentary 
seat yesterday tn protest at the 
recent decision by the govern- 
ment not to prosecute two for- 
mer presidents for their role to 
a 1979 military coup that 
brought them to power. 

Mr Lee, who has blocked 
parliamentary proceedings for 
the last three weeks over the 
issue, called on other MPs to 
follow his example and force a 
general election. But analysts 
believe his surprise move may 
instead cost him the leader- 
ship of the Democratic party 
(DP) because some party offi- 
cials regard Us position as too 
extreme. 

"He has painted himself tote 
a corner," said one aide to Mr 
Elm Dae-jung, the former DP 

hffwd- 

Mr Lee, who has been critic- 
ised for his hapless leadership 
since becoming party head two 
years ago, sought to use the 
government’s failure to prose- 
cute former presidents Chon 
Doo-hwan and Rob Tae-woo as 
an issue to strengthen his 
position within the party. By 
confronting the government, 
he hoped to rally support 
behind his leadership. 

Many DP members opposed 
the military government after 
the coup leaders violently sup- 
pressed a 1980 revolt to the 
dty of Kwangju, the party’s 
wain power base. 

But some senior DP officials, 
including the party’s founder 
Mr Kim, have urged Mr Lee to 
ahftnflnii hie hardline attitude 
and resume parliamentary 
proceedings, which will 
include the scheduled approval 
erf South Korea's membership 
of the World Trade Organisa- 
tion. 

The tote of former presi- 
dents Chun and Roh has also 
posed a political problem for 
the current President Kim 
Tonng-sam, who was an oppo- 
nent of military rule to the 
1980a. 

President Kim favoured 
leniency for the two former 
presidents because he feared 
that prosecuting them could 
lead to a split within the rat- 
ing Democratic Liberal party. 

Prosecutors said Mr Chon 
and Mr Roh would not be 
charged with military rebel- 
lion because of their 
subsequent service to the 
country. 

The majority of DLP MPs 
are allies of Mr Chun and Mr 
Roh. The DLP was created in 
1991 following a merger 
between then-president Rob’s 
ruling party and Mr Kim’s 
smaller opposition group. 

There have been persistent 
rumours that conservative 
MPs may soon quit the DLP 
and form a new party to 
appose President Him because 
of concerns that they will not 
be renominated for parliamen- 
tary seats in the 1996 elec- 
tions. 


Measures aim to encourage purchases of imported goods 

Japan’s tax reforms clear Diet 


By Simon Hotberton 
in Hong Kong 

Hong Kong is expected to 
produce its lowest annual 
inflation rate since 1988 this 
year. The government has 
revised its inflation forecast 
down to 8 pm* cent for the year 
from a previously estimated 
8.5 per cent 

The easing of inflationary 
pressures was not, however, 
seen as a harbinger of slower 
economic activity. The govern- 
ment left unchanged its fore- 
cast of a 5.7 per cent real 
expansion to the economy for 
1994. 

The revised inflation fore- 
cast came with the release of 
the government’s quarterly 
economic report which showed 
that gross domestic product 
expanded by 5.4 per cent to 
real terms to the second quar- 
ter of the year compared with 
a year earlier. This was a 
slightly slower rate than the 
5.7 per cent in the first quarter 
of the year. 

inflation hag been one of the 
government’s biggest political 
problems. Its earing appears 
to part to be a combination of 
a slower growth in personal 
consumption and reduced 
activity fa Hong Kong's resi- 
dential property market. 
Prices for flats have eased far 
10-20 per cent since a package 
of measures was introduced to 
curb speculative acti vity. 

The colony’s growth rate has 
been propelled by a strong 
external trade performance. 
Exports, for wbich more 
recent data are available, were 
up 11 per cent to real terms in 
the third quarter, while re-ex- 
ports were 14 per cent higher 
to real terms than in the previ- 
ous corresponding period. 

Growth to retained imports 
of capital goods was 17 per 
cut to real terms to the third 
quarter over a year earlier, 
compared with a real growth 
of B per cent during the first 
half. 


Tokyo breaks silence 
over plutonium stocks 


By Embus Terazono in Tokyo 

The Japanese government 
disclosed the country’s pluto- 
nium stockpiles for the First 
time yesterday in an effort to 
increase transparency of its 
nuclear fuel programme. 

Tokyo has long been secre- 
tive about its ambitious pluto- 
nium programme on grounds 
of security. 

However, concern over its 
plutonium policy was aired 
last year by some Japanese 
MPs, ahead of the British gov- 
ernment's authorisation of the 
controversial launch of British 
Nuclear Fuel's Thorp plant at 
Sellafield. 

They opposed the start of 
Thorp's operations, claiming 
that Japan, a leading customer 
of the nuclear reprocessing 


plant, would be left holding 
excessive amounts of pluto- 
nium. 

International concern over 
global nuclear proliferation 
and heightened criticism over 
North Korea’s nuclear develop- 
ments have also prompted the 
Tokyo government to provide 
more information to the public. 

The stocks were listed in the 
nuclear energy white paper put 
together by the Science and 
Technology Agency. Agency 
officials said the ammmfat had 
been disclosed to reconfirm the 
government's plan of not hold- 
ing more plutonium than the 
programme required. 

The white paper said 1.286kg 
of plutonium were held in the 
UK and 49llkg to France at 
the end of last year. Since 
Japan has as yet no fully 


fledged commercial-use repro- 
cessing facilities, British 
Nuclear Fuel and Cogema of 
France are reprocessing 
nuclear fuel into plutonium. 

Of the 4,684kg held in Japan, 
326kg were situated at re pro- 
cessing facilities in Tokai, 
north erf Tokyo, and 3,269kg at 
the site's fuel fabrication facili- 
ties. A further 1.089kg were at 
the country's Cast breeder reac- 
tors. 

Tbe government’s announce- 
ment ennya ahead of the ship- 
ment next February of high 
density nuclear waste originat- 
ing from Japanese used 
nuclear fuel processed by 
Cogema- A total erf 28 stainless 
steel containers of nuclear 
waste moulded together with 
glass will be shipped back to 
Japan from France. 


Indian police kill seven 


By Shiraz Sidhva in New Delhi 

Police shot dead seven people 
and injured 100 yesterday 
when they opened fire on a 
crowd of students in Kannur 
district, in the southern Indian 
state of Kerala. 

Police said they fired at the 
crowd after protesters attacked 
the car of a visiting state min- 
ister during a demonstration 
by the youth and student 
wings of the Communist Party 
of India - part of widespread 
action against the state govern- 
ment’s education policy. 

It was the third consecutive 
day in wbich police have 
resorted to violence to quel! 


demonstrations, in unrelated 
incidents in different parts of 
the country. 

At least 120 people died to a 
stampede in Nagpur. Maha- 
rashtra state, on Wednesday 
after police used batons on a 
group of tribal demonstrators 
to stop them breaking through 
a cordon around the state legis- 
lature. On Thursday at least 
two people were killed in tbe 
eastern sector of New Delhi, 
the capital, when police opened 
fire on a mob they said stoned 
a squad of the Delhi Develop- 
ment Authority as it attempted 
to demolish an unauthorised 
construction. 

• Maoist guerrillas in the 


southern state of Andhra Prad- 
esh kidnapped a relative of 
prime minister PV Narasimha 
Rao ahead of an election rally 
the Indian leader was set to 
address yesterday, police said, 
Reuter reports from WarangaL 
They said guerrillas of the 
Praia Pratighatna group, a 
breakaway faction of the main 
Maoist People’s War Group, 
were demanding a Rsim 
(£20,400) ransom for the 
brother of Mr Rao's son-in-law. 
The Maoists defied a paramili- 
tary crackdown on Thursday 
to lead a strike against what 
they say will be fraudulent 
state assembly elections on 
December 5. 


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FINANCIAL TIMES WEEKEND NOVEMBER 26fHOVEMB^R. 27 ^94 


NEWS: INTERNATIONAL 


Fighting in Lebanese refugee 


camp over Mideast peace deal 



Eight die in 
Palestinian 


warned 
on role in 
Congress 


By George Graham 
on Washington 


gun battles 


By Julian Ozamu in Jerusalem 
and Reuters 


Gun battles between 
supporters and opponents of 
Mr Yassir Arafat, chairman of 
the Palestine Liberation Organ- 
isation, left at least eight Pales- 
tinians dead yesterday in Leba- 
non's biggest refugee camp. 

The day-long fighting with 
machine guns and anti-tank 
rockets has sparked fears of an 
eruption of internal Palestin- 
ian violence among the 400,000 
Palestinian refugees camped in 
Lebanon. 

The fighting marks the 
spread of tension between Pal- 
estinians supporting and 
opposing Mr Arafat's peace 
agreement with Israel, and the 
anger about last Friday's kill- 
ing of 12 Palestinians in the 
Gara Strip by Mr Arafat’s Pal- 
estinian police force. 

It also exposes the deepening 
divisions within Mr Arafat’s 
Fatah faction and more widely 
within the FLO, traditionally 
dominated by Fatah, and the 
mounting challenge to Mr Ara- 
fat's leadership. 

Fighting broke out before 
dawn when 400 pro-Arafat 
guerrillas seized six military 
posts manned by 200 dissidents 
in the Ain el-HUweh refugee 
ramp near the southern port of 
Tyre. 

The dissident group is led by 
Lt-Col Munir Maqdah, the for- 
mer military head of Fatah 
who was dismissed by Mr Ara- 
fat last year after he called for 
the PLO chairman's resigna- 
tion over the peace agreement 

“The traitor Arafat has to 
move away from our Palestin- 
ian people," Lt-Col Maqdah 
was quoted as saying yester- 
day after he described last Fri- 
day's clashes as “massacres” 
committed by Mr Arafat 

Armed Palestinian factions 
backed by Syria and opposed 
to the peace deal have a strong 
presence in Lebanon’s 12 refu- 


gee camps and many refugees 
feel the Israeli-Palestinian 
peace agreement has perma- 
nently ended the right of 
return to their homeland 
which has been the central ral- 
lying call of the PLO for 
decades. 

Neither Lebanon nor Syria 
has so Ear tiled to move into 
the camps to disarm the guer- 
rillas. Syria, which maintains 

40.000 troops in Lebanon, has 
also publicly criticised Mr Ara- 
fat’s peace agreement with 
IsraeL 

“Syria is anxious to prove 
that Arafat's problems are not 
localised to Gaza but spread 
across the Palestinian dias pora 
nation and across the entire 
Arab world,” said a Beirut 
observer. 

In Cisrra the militant Hamas 

Tslamir Resistance Movement, 
which has blamed Mr Arafat 
for last Friday’s killings, post- 
poned a Large rally until today. 
Hamas, which leads the Pales- 
tinian opposition to the peace 
process, said It expected 20,000 
people to attend the rally to 
demonstrate the strength of 
opposition to Mr Arafat’s peace 
deaL Earlier in the week up to 

10.000 supporters of Fatah dem- 
onstrated in Gaza. 

In Israel, the prime minister, 
Mr Yitzhak Rabin, said carry- 
ing out a death sentence given 
yesterday by an Israeli military 
court to a Palestinian guerrilla 
from the Hamas group would 
be a “blunder”. Mr Rabin said 
he opposed execution of a Pal- 
estinian sentenced to death for 
carrying out a bus bomb attack 
in April that killed six people. 
“To this day Israel has not put 
a single Pales tinian terrorist to 
death and I thfnk this was cor- 
rect," he said. 

Leaders of Hamas said the 
death sentence would only 
encourage further Islamic sui- 
cide attacks against Israelis, 
not deter them as the militar y 
court argued. 


The outgoing leader of the 
Republicans In the House of 
Representatives yesterday 
warned bis successors against 
letting power go to their heads 
after their sweeping triumph 
in this month’s congressional 
elections. 

Mr Bob Michel, who is retir- 
ing after 38 years in the House 
and 14 as leader of the Republi- 
can minority, said he did not 
care for the plans of Mr Newt 
Gingrich, who will succeed 
him as Republican leader and 
take over as speaker of the 
House in January, to concen- 
trate moire power in the speak- 
er’s office. 

“I didn’t crave power when I 
was leader - I don’t know if it 
would have changed if I were 
speaker. I just hope it doesn’t 
go to our newly elected lead- 
ers' heads,” Mr Michel told the 
Chicago Tribune newspaper. 

"Newt knows what he's 
doing,” Mr Michel said, but 
warned that the pugnacious 
Georgian was “more of a theo- 
retician than he is a parliamen- 
tarian". “Overplaying your 
hand in the majority can lend 
itself to tiie minority in justify- 
ing itself in really sticking it to 
you ” he said. 

This is not the first time Mr 
Michel has bemoaned the more 
partisan style of politics that 
has taken over Congress, but 
his warnings to Mr Gingrich 
were unusually pointed. They 
could foreshadow clashes in 
style between Mr Gingrich and 
Senator Robert Dole, who will 
lead the Republicans in the 
Senate and who is more of a 
parliamentarian than the new 




By Marie Suzman in Johannesburg 


Hapless commuters arc being caught in the taxi rivals’ crossfire 


The killing of five people' in. 
Hammanskraal, north rtf Pretoria, yes-', 
terday during a' shoot-out between 
South African police and warring mini- 
bus-taxi operators has added to a taxi- 
related death toll that has started to* 
rfflfm more lives than political vkdence. 

Despite calls for calm from tile gov- 
ernment and repeated, attempts by Mr. . 
M ao Maharaj, transport minister. • to 
broker truces between rival groups, 
fierce competition over lucrative routes 
around the country has resulted in an 
upsurge In violent confrontation, .'with 
ha pless commuters cwugb* in the cross- 
fire. 

Police say that 200 people have been 
kin mi thfa year and more than .110 
injured as a result of clashes between 
opposing taxi organisations, dubbed 
locally as “taxi ware". 

In large part this reflects the fact that 
taxi groupings are increasingly taking 
on criminal characteristics as shadowy 
operators hire hitmen to km .their rivals 
and destroy their vehicles. A report an 
the issue by the Sooth. African Police 
Services, submitted to parliament ear: 
her this month, concludes that the situ- 
ation is likely to deteriorate further 
unless there is an immediate damp- 
down on lawless elements in the indus- 
try. 

“Taxi associations have developed a 
distinctive, Mafia-like character to 
reach economic objectives and to 
counter economic threats. They fre- 
quently strengthen their power bases 
by using armed units which have no 
qualms about using violence and com- 
mitting murder,” the police report., 
observes. 

The spark for this year’s sadden 


surge in violence was^.JBnancialibk 
lapse of th&. Souft -African Black Thxr 
>. ArayHstin n 'in September 1995. Up tu ; 
that- point Sabfa, which was formed m : 
1986, had been able to a ct : as a fop® 
umb rella ..tor the industry's ; many > 
regional axsocigtk m &L:: • 

managed to sort dot many con- - 

finds internally- : > 

Bat . even If ah attempt, cotrentiy .- 
under way, Jth revive Sabta is suceess- ' 
-fill, it leaves unresolved the underlying. 
p^rn-nift causes of the conflict ..’ , . 

: When the minibus industry started JjU 
the early 1980s it was hailed; as ah: 

’ orampift ’of successful Hack entre^e-' 
neurship aTU * by 1090- bad man aged to _ 
platan 44 per cent of the black commuter 

transport market. ' • 

Since the situation, has ch ang e d, 
drastically- ■ 

■ Although no accurate figures of its . 
size exits, analysts, estimate t hat the 
industry is -worth somewhere between’ ’’’ 
R5bn and R8bn {£9Q9m-£!45bn) _ and . 
employs .more than 70,000 people so 
drivers and ancillary Workers- How- 

ever, since 1390 ihenumber of taxishas 
continued to grow while the number of -' 
commuters has- dropped -slightly, 
because of the recession. v .. 

The result is a classic case of an over- 

crowded market there are too .many 
tarig and too few commuters. . 

The obvious solution for the govern- - 
meat is to impose strict regulation on 
the industry, . curtailing the number of : 
operators on Mg routes. . 

However, Mr Maharqj. is constrained 
by the fear of causing farther job losses 
and concern that . tighter regulation will : 
merely increase the number of pirate 
taxis in operation. This would exacer- 
bate the violence rather than help elim- 
inate it 'V 


Financial teams set out to win converts 


Mr Michel also criticised the 
“Contract with America”, a list 
of campaign pledges espoused 
by most Republican candidates 
in the November 8 election, 
saying its promise of tax cuts - 
without offsetting spending 
cuts did not add up to a bal- 
anced budget 

Mr Ray LaHood, a Michel 
aide who won his seat repre- 
senting Peoria, Illinois, was 
one of the few Republicans 
who did not sign the contract 


South African officials set out 
for the world’s financial 
centres today to prepare for a 
return to foreign capital 
markets after a two-year 
absence, finance minister 
Chris Liebenberg said 
yesterday, Reuter reports from 
Johannesburg. 

He emphasised the mission 
was not designed to raise 
funds yet but to pave the way 
for future funding when 


appropriate. He said the 
high-powered roadshow was 
the first opportunity the 
government which took power 
after the country's first 
all-race elections in April, bad 
had to go abroad to market the 
country's policies and 
philosophy. 

The officials would use the 
credit ratings assigned to 
South Africa in October by 
American and Japanese risk 


assessment agencies “to 
establish ourselves in the 
minds of potential investors”. 

Moody’s Investors Service 
and Nippon Investors Service 
gave the country investment 
grade ratings, while Standard 
& Poor’s gave it its top 
speculative ranking, with a 
“positive" outlook. 

The ratings wQl enable 
South Africa to tap a wider 
range of markets and . 


investors titan would 
otherwise be possible. 

Mr liebenberg said three ; 
teams of officials would travel 
to Europe, east Aria and the. 
US. Apart from Mr Liebenberg, 
they would include Reserve 
Bank governor Chris Stals, 
deputy finance minister Alec 
Erwin, MMi lahiw rr mhrigtoy 

Ttto Mboweni. 

The officials would be 
accompanied by represen- 


tatives of Goldman, Sachs and 
Swiss Bank Corporation, 
which have been named lead 
managera for the cbtmtry’s . 
first global offering. 

The national budget for the . 
1994J5 fiscal year ending to 
March provided for M-8bn 
(£327m) in possible foreign . 
loans, faut.tti;Liebenberg said 
South Africa did not need to 
borrow abroad to meet the 

budget. 


Quebec separatist ardour cools 


A military college, a 
trade mission to China 
and an ailing St Law- 
rence River shipyard are 
among the disparate issues 
which Quebec’s newly elected 
separatist government has 
pounced on to promote its case 
for independence from Canada. 

The steadily growing list 
comes as no surprise. Political 
observers predicted in the 
wake of last September’s elec- 
tion that the Parti Qudbecois 
would waste no time shaking 
every tree it could to prove 
that the francophone province 
was getting a raw deal from 
the rest of the country. 

The surprise is that the shak- 
ing has so far borne little fruit. 
The skirmishes have generated 
endless articles in the Quebec 
media about alleged slights 
and inequities. On several 
occasions the PQ has suc- 
ceeded in putting the federal 
government in Ottawa on the 
defensive. 

However, Quebecois appear 
to be unimpressed. According 
to the latest opinion poll con- 
ducted by Leger and Leger of 
Montreal, support for sover- 
eignty (which, in the Quebec 
context, has the connotation of 
a “soft" form of independence) 
has slipped to 40 per cent from 
more than 50 per cent before 
the election. Other polls put 
the number as low as 33 per 
cent 

The issues which the PQ has 
seized on in the past two 
months illustrate both the 
opportunities and the pitfalls 
or beating the separatist drum. 

Even before taking office the 
PQ kicked up a storm over a 
federal plan to trim defence 
spending by closing the Col- 
lege Militaire Royal at Saint- 
Jean. south-east of MontreaL 


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the past few months have 
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results, writes Bernard Simon 


The college is the armed 
forces' only training centre for 
French-speaking officers. 

Quebec’s protests have 
forced Ottawa to offer a com- 
promise, which would allow 
the facility to stay open as a 
language school. The PQ has 
rejected the proposal. It has 
offered instead to pay itself for 
St-Jean to remain a military 
training college. But by doing 
so it has laid itself open to con- 
cerns that it is preparing to 
organise a Quebec army. 

On another front, Mr Jac- 
ques Parizeau, PQ leader and 
premier, refused to join a trade 
mission to C hina earlier this 
month which was led by prime 
minister Jean Chretien and 
included the premiere of all 
nine other provinces. 

Mr Chrgtien at first appeared 
on the defensive by refusing to 
accept Mr Parizeau’s sugges- 
tion that Quebec’s deputy pre- 
mier go in his place. Id the 
end, however, the mission’s 
success - including contracts 
signed by several high-profile 
Quebec companies - did the 
separatist cause no good. 

The latest fuss has erupted 
over the future of MIL Davie, a 
Quebec City shipyard. The 
company is cm the point of col- 
lapse, unless it receives new 
government contracts or an 
infusion of cash for a moderni- 
sation programme 

The cash-strapped federal 
government, in keeping with a 
policy of letting troubled busi- 


nesses sort ont their own prob- 
lems. has so far declined to 
come to the shipyard’s rescue. 

The PQ has lambasted Ott- 
awa for putting 2^00 Quebec 
jobs in jeopardy, and has 
offered to put up C$80n*C$7Qm 
CE28m.-f32.7m) of its own tax- 
payers’ money for a new ferry, 
which would keep the shipyard 
in business for at least the nekt 
few years. Mr Michel Vennat, a 
lawyer who heads the Council 
for Canadian Unity, says that 
"the population knows that 
they (the PQ] are fabricating 
these issues to some degree. I 
don't think the mood of the 
province is to pick fights.” 


A nother observer sug- 
gests that Quebecois 
are as fed up as 
English-speaking Canadians 
with the interminable debate 
over the francophone prov- 
ince’s place in Canada. This 
view is reflected in the refusal 
or both Mr Chretien and the 
provincial liberal parly, which 
was defeated in the recent elec- 
tions. to assuage Quebec 
nationalism by reopening the 
constitutional talks which 
have been a hallmar k of Cana- 
dian politics for the past 
decade. 

Despite his apparent inabil- 
ity to win converts to indepen- 
dence, Mr Parizeau has so for 
stuck to his preelection prom- 
ise of a sovereignty referen- 
dum before the end of 1995. 
The PQ is gearing up its organ- 


isation for a campaign starting 
early next year. 

But there is a growing feel- 
ing in Montreal that the sepa- 
ratists may be forced to change 
tads if the confrontational tac- 
tics erf the past few months fail 
to produce results soon. 

The party has long been 
divided between hardliners and 
those , who favour a more cau- 
tious drive towards indepen- 
dence. Among the latter is Mr 
Lucian Bouchard, leader of the 
Bloc Quebecois, which repre- 
sents the separatist cause in 
the federal parliament. Mr 
Bouchard, the most popular 
politician in Quebec, has 
already hinted he is uncomfort- 
able with the referendum dead- 
line set by Mr Parizeau. 

However, a shift in strategy 
would require some agile foot- 
work by Mr Parizeau, and 
could risk deepening divisions 
in the party. The alternatives 
include delaying the referen- 
dum, or framing the question 
so vaguely that even a Yes 
vote would fall far short of a 
ma n da te for outright indepen- 
dence. 

Some political observers sug- 
gest that the PQ may even 
adopt a more conciliatory 
approach to the rest of the 
country. This prediction is 
reinforced by the impression 
that last September’s election 
result reflects Qu£becois' 
desire for better government 
and ronrn extra areas of provin- 
cial jurisdiction, rather than 
the risks of independence. 

Whatever course the PQ 
chooses, one conclusion is hard 
to escape. It seems increasingly 
unlikely that Canada's most 
vexing question - will Quebec 
stay or leave? - will be conclu- 
sively answered within the 
next 12 months. 


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FINANCIAL TIM ES WEEKEND NOVEMBER 26/NOVEMBER 27 1994 




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FINANCIAL TIMES WEEKEND 


271994 - ■ ■ 


NEWS: UK 


MPs reject brewers’ call for cut in duty 


By Roderick Oram, 

Consumer Industries Editor 

A Commons committee of MPs 
yesterday rejected on economic and 
health grounds a call by brewers to 
halve beer duty to curb cross- 
Channel imports and stimulate flag- 
ging UK sales. 

The Treasury select committee 
said Imports of alcohol and tobacco 
were “not seriously undermining 
receipts of excise ditty". But it cau- 
tioned Mr Kenneth Clarke, the chan- 


cellor, against widening the differen- 
tial between UK and Continental 
duties. 

The MPs* report on cross-Channel 
shopping expressed doubt about the 
brewers' case. They had argued that 
the lass of UK beer sales was damag- 
ing pubs and off-licences. A cut in 
duty would revive sales, they 
argued. 

Cross-border shopping is “dearly 
having a serious impact cm the activ- 
ities of le gitimate traders," the MPs 
said. But "changing consumption 


patterns, however, make it exceed- 
ingly difficult to isolate the loss of 
sales directly attributable to cross- 
border shipping". Claims that there 
is a link "have to be treated with 
considerable caution". 

Moreover, brewers’ costs and mar- 
gins have driven up the price of 
beer, the MPs said. "Until it 
addresses these issues, the industry 
cannot expect the taxpayer to sub- 
sidise its operations by reducing 
excise duties." 

On health grounds, a government 


could never consider a large cut in 
duties if they led to increased con- 
sumption of alcohol and tobacco, the 
MPs said. 

They recommended, instead, that 
the government seek to persuade 
Continental governments to raise 
their taxes to make cross-border 
shopping less attractive. 

The report drew an angry 
response from Whitbread, one of the 
brewers which has been leading the 
campaign. 

"They're a set of wishy-washy 


recommendations from a rushed 
inquiry which failed to get the . 
facts,” said Mr Peter Jarvis, chief 
executive. 

The government has already said 
it is unwilling to cut excise duties. 
The chancellor indicated in last 
year's Budgets that alcohol duties 
were unlikely to rise faster than 
inflation. 

The MPs found a closer link 
between tobacco imports and dam- 
age to the domestic industry, most 
particularly in tobacco for hand- 


rolled cigarettes. Tobacco accounted 
for the “vast bulk of smuggled 
goods" and the high profits had 
attracted "serious crinrinals" . . . 

The MPS recommended that the 
Customs service deploy “substan- 
tially increased* staff to try’to stem 
the illegal import of alcohol and 

tobacco. ■ .'* * 

The National Union of Civil and 
public Servants warned yesterday, 
however, that the Budget next Tues- 
day would indude proposals to cut 
4JX» jobs out of the service's 25,000. 


Gas boss’s pay 
‘adds £1 .6m to 


pension cost’ 


ByWHam Lewis 

The £205,000 pay rise recently 
awarded to Mr Cedric Brown, 
chief executive of British Gas, 
has increased the cost of 
providing him with a company 
pension by about £l.6m, 
according to a study. 

Mr Bryn Dairies, an actuary 
who advises trade unions on 
company pension schemes, 
said the current value of Mr 
Brown’s future pension 
payments was £3 5m, compared 
with £2 5m before he received 
the 75 per cent rise in basic 
pay. 

Mr Davies said: “The value 
of his expected pension, like 
his pay, has gone up by more 
than 70 per cent I have calcu- 
lated that his pay increase has 
pushed the worth of his pen- 
sion benefits up by a farther 
21.8m/ 1 

Details of Mr Brown’s pay 
rise emerged last week. His 
basic pay has been increased to 
£475,000 from £270,000. Other 
executive directors of British 
Gas received rises of up to 50 
per cent 

Mr Brown is a member of the 
British Gas staff pension 
scheme which provides pen- 
sions depending cm members’ 
earnings just before they 
retire. 

Mr Davies’s calculations 
assume that Mr Brown, 59, will 
retire in just over two years’ 
Hmp- British Gas gain that he 


had at least 35 years’ pension 
scheme service. 

Mr Brown contributes 4 per 
tv . nt of his baric salary into the 
scheme each year, so his 
£205,000 pay rise means he will 
be paying more into the pen- 
sion fund. 

Asked to co mm ent on Mr 
Davies's calculations, British 
Gas said yesterday that Mr 
Brown was a member of “a 
group pension s cheme with a 
common contribution, rate so 
we do not define the costs for 
individuals". 

Sir Anthony Beaumont-Dark, 
chairman of TR High Income 
Trust which holds 400^00 Brit- 
ish Gas shares. he would 
be writing to British Gas ask- 
ing fbr an explanation for the 
increased pension costs. 

He said: “If we do not get a 

saH«ft»» tnr y response then we 

will consider using our votes 
in the appropriate manner at 
the company’s annual general 
meeting.” 

Trade union nfRciala repre- 
senting industrial workers at 
British Gas have submitted a 
claim for a pay rise next 
year. 

Mr Donald Macgregor, a 
senior GMB nuirm official, said 
yesterday that it was likely 
that Mr Brown’s pay would 
affect of negotiations. He said: 
“It is inconceivable that such 
over-the-top treatment for a 
chief executive can be ignored 
by industrial employees.” 



Greenpeace protesters yesterday tried 
to stop the nuclear submarine HMS 
Vanguard from leaving its dock at Fas- 
lane near Glasgow as it was moving to 
a nearby dock at Cool port to have its 
Trident JQ unclear warheads loaded for 
the first time. Bernard Gray in Fas lane 
writes. 

A Greenpeace tag. Solo, and inflat- 
able rafts tried to blodc Vanguard’s 
path through a narrow channel In Gare 
Lodi, which leads into the river Clyde. 
The protesters also attempted to tie a 
fishing net across the bows of the sub- 
marine. The net was removed by Van- 
guard crew members (above). 

Vanguard, Britain’s first Trident sub- 
marine, was an rente to Britain’s main 
nudear weapons storage base at Conl- 
port. The submarine has completed its 
trials and nuclear warheads are being 


Trident submarine 
escapes protest net 


added to its missiles in preparation for 
its first deterrent patrol dne to start in 
the next few weeks. 

A small group of anti-nuclear protes- 
tors also demonstrated ontside the 
gates of the Faslane submarine dock as 
Vanguard began its early morning voy- 
age which marked the start of its effec- 
tive operational deployment 

To load the warheads on to Van- 
guard’s missiles, the 16,000-tonne sub- 
marine, which is almost as large as the 
Invincible class aircraft carriers, will 


be raised oat of the water on a giant 
85,000-tonne floating dock and shiplift 
Raising the boat will take several 
boors. 

The delicate task of fitting the war- 
heads will begin today and last until 
the middle of next week. The floating 
dock and shiplift are needed to provide 
tnavimniw stability and to avoid an 
accident while loading the plutonium- 
powered, thermonuclear bombs. 

After completion of final tests once 
the warheads are fitted. Vanguard will 


begin Its first operational patrol, repla- 
cing one of Britain’s two . remaining 
Polaris nuclear submarines. 

Cmdr Peter Wilkinson, who will cap- 
tarin Vanguard’s first patrol, said he 
was “well aware of the awesome 
responsibility which [he] carried”. He 
added that in spite of the end of the 
cold war the nuclear deterrent fleet 
carried out its mission exactly as it had 
always done . 

Cmdr wnkmson acknowledged, how- 
ever, that following an agreement 
between Mr John Major, the prime 
minister, and President Boris Yeltsin 
of Russia, the submarine's missiles 
were aimed on an empty spot in the 
ocean. Switching the missiles to mili- 
tary or civilian targets would take "a 
finite amount of time”. Just how finite 
was not made dear. Photograph: Ratter 





■jWy , 





W 


V— 


SPOT THE REFUGEE 



There he & Fourth now, second from 
the left. The one wi& the moustache. 
Obvious really. 

Maybe not The unsavoury-looking 
character you’re looking at is more 
likely to be your average neighbour- 
hood slob with agrubby vest and a 
weekend’s stubble on Us chin. 

And the real refugee could just as 


Everything they once had has been 


afl gone. They have nothing. 

And nothing is all theyTl ever have 
unless we all extend a helping hand. 

We know you can't give them back 
the things that others have taken aw^y. 


You see, refugees are just like you 
and me. 

Except for one thing. 



linked Nations HighCamnissumer for Refugees 


We’re not even asking for money 
(though every cent certainly helps) . 

But we are asking that you keep an 
open mind. And a smile of welcome. 

It may not seem much. But to a 
refugee it can mean everything. 

UNHCR is a strictly humanitarian 
organization funded only by voluntary 
contributions. Currency itis responsible 
for more than 19 million refugees 
around the world. 

UNHCR Pubfic Information 

P.O. Box 2500 

1211 Geneva 2, Switzerland 


INT 


Postal 
sell-off 
lacked 
fan mail 

By David Owen 

Only a small fraction of 
responses to the government's 
consultation paper on the Post 
Office were in favour of priva- 
tisation, Mr Tim Eggar, indus- 
try minister, disclosed yester- 
day. 

Mr Eggar said in a parlia- 
mentary written answer that 
about 60 responses - or less 
than than 0.4 per cent of the 
15,400 received - were “posi- 
tively in favour” of Cull or par- 
tial privatisation. 

He said most replies took the 
form of “standard form” letters 
and postcards issued by organi- 
sations campaigning against 
the government's proposals. 

Ministers were forced this 
month to cancel plans to pri- 
vatise the Royal Mail letters 
division of the Post Office 
because of the implacable 
opposition of a small number 
of Conservative backbenchers. 

Mr Eggar was replying to a 
question by Mr Gordon Pren- 
tice, Labour MP for Pendle. 
Labour has indicated it intends 
to inflict fresh embarrassment 
on the government by inviting 
Tories who opposed a sell-off to 
back a Commons motion giv- 
ing the Post Office greater 
commercial freedom. 


Fayed cleared 
over allegations 
of blackmail 


By John Mason, 

Law Courts Correspondent 

Mr Mohamed Fayed, chairman 
of Harrods, was cleared yester- 
day of allegations that he 
attempted to blackmail the 
government in the controversy 
over MPs accepting money to 
ask parliamentary questions. 

The Crown Prosecution Ser- 
vice announced there was no 
evidence Mr Fayed had com- 
mitted any criminal offence, 
and that police would not 
investigate further. 

The allegations centred on a 
meeting on September 29 
between Mr John Major, the 
prime minister, and an inter- 
mediary - widely believed to 
be Mr Brian Hitchen. the Sun- 
day Express editor. 

The intermediary said Mr 
Fayed wanted a meeting with 
Mr Major to discuss the 
Department of Trade and 
Industry report on the take- 
over of the House of Fraser. He 
was also said to be contemplat- 
ing passing on allegations 
about the conduct of ministers. 

Mr Major told MPs he had 
passed a note of the meeting to 
the prosecution service. 

The CPS said: “Having con- 
sidered the available evi- 
dence ... it does not disclose 


the commission of any crimi- 
nal offence by Mr Fayed." 

Mr Fayed, who later made a 
series of allegations about Tory 
MPs through The Guardian 
newspaper, said: "Allegations 
were made about me . . . that 
were unfair and untrue and to 
which I could not respond dur- 
ing the currency of the 
inquiry. I trust that the prime 
minister will take the earliest 
opportunity to set the record 
straight." 

Mr Fayed’s cash-for-ques- 
tions claims against Mr Nefl 
Hamilton, corporate affairs 
minister, forced him to resign 
although he denied the allega- 
tions. They also led to the res- 
ignation of Mr Tim Smith, a 
junior Northern Ireland minis- 
ter. after he admitted not 
declaring links with Mr Fayed. 

Mr Michael Howard, the 
home secretary, and Mr Jona- 
than Aitken, chief secretary to 
the Treasury, were both 
cleared of any impropriety by 
an inquiry carried out by Sir 
Robin Butler, the cabinet sec- 
retary. 

Mr Peter Preston, The 
Guardian's editor, said: “I 
never thought there was any- 
thing to this except another 
wild diversion - I am glad this 
has now been acknowledged." 


Adams 




* 


Mr Gerry Adams, ‘the San 
Fftx prudent hassteppetfup 
his efforts to force the pace .of - 
ihe Northern. Ireland peace 
process. He sentit letter to Mr 
John Major setting out hia 
agenda for ta&s betweeh the - 
British, government . and- Sinn- :.v 
Ffiin. Davjd Q wena nd Johih - 
: Morray Brown write - V 

He said he had writtan to tha ~ 

■prims minister to ensure tine ■ 
was “foo confusion or ' tone lest ., 
over arranging sum matters as . 
delegations, ; venues ' and 
times’VHe added: "AH of these . - 
Issues can and - should -be 
sorted out now.”' - 

Downing .Street yesterday 
confirmed that Mr Major had 
received the letter but officials 
. -were. not. mire whether he fcad ” : - 
- bad time to studyrit They said.' ~ 
the government would move 
ahead with talks “afthe pace it 
determined to be correct”-.' ... . 

Ministers have said a prelim- . 
injury dialog ue with Sinn F6in 
would begin before Christmas, ; - 
provided the nearthree-mcflith- 
oid IRA ceasefire held. Talks : . 
with loyalist political represen- ^ 
tattves would start soon after'.' 

• wards.,’ - • . 

Mr Adams, told. Downing. .. 
Street that the Shm FMn team 
in thetalks wouktbe ledbyMr 
Martin McGuinness, a vice- . 
president Hfe said that .the 
ground to be covered should 

• ftirfnfla -^d ainiUtai'lwaHrin and 

other Issues”. • - 

A week ago lb Adams 
accused the government: of 
dragging its feet on efforts to 
forge -a lasting settlement in 
fha province. 

Yesterday .Mfci Pat Doherty, 
another Sinn Ffiin vice- 
president, speaking at Dublin's 
Forum for Peace and Recancfli- 
atkm, called On both London 
and Dublin to convene all- 
party talks. to find a settle- 
ment. 

Fine Gael, the Irish repub- 
lic’s main opposition party, 
said explosives and guns bad 
to be decommissioned before 
foil political talks involving 
Sinn F6in could start: 

Company failures 
continue to fall 

Company failures continued to 
fall in the third quarter, fig- 
ures from KPMG Peat Mar- 
wick, the accountancy firm, 
show. A' total of 6,140 bank- 
ruptcies was recorded In the 
quarter, a fall of 14.4 per cent 
compared with the same period 
last year. Liquidations fell l&S 
per cent to 3^623. 

The recovery recorded by 
KPMG is not even across the 
country. The north-east saw a 
fall of nearly 20 per cent in 
liquidations between the sec- 
ond and third quarter while 
the Midlands and north-west 
saw increases. 

Mr Tim Hayward, head of 
corporate recovery at KPMG, 
said: “A year ago the recovery 
was at a very fragile point; 
there is a more robust feeling 
in the economy now and com- 
panies, with the support of 
their banks, are gearing up for 
an Improving economy." 

Royal household 
to publish accounts 

Buckingham Palace is to pub- 
lish annual accounts ttetaTting 
how £20m of taxpayers’ money a 
is spent running royal palaces.. - 
The first annual repot will he * 
published in July. 

This follows a call by toe 
Commons public accounts 
committee in September for 
greater “public visibility" of 
how public money was spent at 
the royal palaces. Yesterday 
the government recommended 
publication of the royal house- 
hold’s annual accounts. 

The palace said the royal 
household had nothing to hide 
and would be delighted to pub- 
lish a foil annn.il report. 


Judge lets Lloyd’s probe continue 


By John Mason, 

Law Courts Correspondent 

Regulators from Lloyd’s, the 
insurance market, can con- 
tinue with their loss review 
into syndicates 80 and 843, a 
High Court judge ruled yester- 
day. 

Mr Justice MacPherson dis- 
missed an application by Mr 
John Macmillan, the former 
underwriter for the syndicates, 
for the review to be stopped. 

Mr Macmillan said that if the 
loss review continued, it would 
prejudice the dvfl case brought 
by Names - the individuals 
whose assets have traditionally 
supported the market - 
against his managing agency, 
RAF Macmillan. He said tran- 
scripts of his interviews could 
be used as evidence in 
court 

The judge ruled, however, 
that the public Interest in the 


Lloyd’s of London has appointed Mrs Rosalind 
Gilmore, chief executive of the Building Societ- 
ies Commission, as director of Its regulatory 
services department, Ralph Atkins writes. 

Mrs Gilmore, who has previously worked at 
the Treasury and toe World Bank in Washing- 
ton, win be responsible for overseeing Lloyd’s 
system of self-regulation. The 200-strong 
department also oversees litigation - a sensi- 
tive issue given that Lloyd’s is embroiled in 
several legal disputes with lossmaking Names. 

Lloyd’s would not comment on her salary, but 
according to toe Insurance market’s latest 
annual report her predecessor earned between 


£130,000 and £140,000 last year, including per- 
fo ™*“ C reiaied bonuses and other benefifaA 
Building Societies Commls- 
swhL the statutory regulator and stmervisor of 
TO bwldmg societies, said Mrs G^STrar- 
re “* was a little over £80,000. 

Gilmore ran toe flnan- 
STiS*? 101 ? divlsl011 was responsible 
StL 1 ™ 1 ®** 011 - fading the 1979 Banking Act 

vS^L 11 * ** Hww* who 
tfos ** Uoyds trance director earlier 


review being completed out- 
weighed any possibility that 
toe civil action might be preju- 
diced. He said there was no 
risk of serious prejudice being 
caused and that publication of 
the interviews might assist all 
concerned in the action. 

About half of the 1,050 
Names on the two syndicates 
are suing the managing agents 


for negligence over losses sus- 
tained in the 1988 year of 
account. They are claiming 
damages of £20m. 

The review into syndicates 
80 and 843 is expected to be 
completed and published early 
in the new year. 

The ruling provides Lloyd’s 
with general guidelines about 
proceeding with other loss 


reviews when legal actions are 
runDin 8 in parallel. The judge 
aaid issues of possible prefc. 
dice would have to be consid- 
ered in each case. 

The loss review department 
is carrying out seven 
reviews. 

Lawyers for Mr Macmillan 
were yesterday considering an 
appeal against toe ruling. 




V 





7 



Company fah 
continue tcS 


-.-v uli 



FINANCIAL TIMES WEEKEND NOVEMBER 26/NOVEMBER 27 1994 * 


MVTMn M4UJ OH CunCMI B* IWO »»m BEFORE ANY "WWTrfM* OH DISCOUNTS SUBMT TO STATUS AND CURRENT EhERGIt TERMS AND CONEHTlWU DETAILS CORRECT AT (tWC W GOING TO PRESS 



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Collapse of 
bus group 
prompts 
MMC probe 


By Chsrte? Batchelor 
and Chris Tighe 

The Monopolies and Mergers 
Commission is to investigate 
bus services in the north-east 
of England after the collapse of 
the municipally owned Dar- 
lington Transport two weeks 
ago. 

Str Bryan Cars berg, director- 
general of fair trading, yester- 
day called for an investigation 
of services in the area. The 
commission will have six 
months tO makft its report to 
Mr Michael Heseltine, trade 
and Industry secretary. 

The Office of Fair Trading 
emphasis ed that the investiga- 
tion would look at all bus ser- 
vices, but Sir Bryan said he 
was particularly concerned 
about an offer of free fares by 
Busways Travel Services, part 
of Stagecoach Holdings. This 
was one of the reasons for the 
demise of Darlington Trans- 
port, which is in administra- 
tion. 

The monopolies review rep- 
resents another clash between 
Stagecoach and the competi- 
tion authorities over the tac- 
tics adopted by the Perth-based 
company to further its ambi- 
tious expansion plans. 

The OFT has Launched a 
number of investigations into 
potential monopolies in the 
bus system since the de-regula- 
tion of the industry outside 
London in 1985. Stagecoach, 
the biggest UK bus operator, 
has been subject to 20 Investi- 
gations and received three 
adverse r uling s. 

Mr Brian Sou ter, Stagecoach 
chairman, denied that the com- 
pany was anti-competitive and 


said he welcomed the monopo- 
lies inquiry in the north- 
east. 

He said: “Our aim is to 
increase bus usage by improv- 
ing the service quality for 
passengers. We do this by 
investing in new buses, offer- 
ing a comprehensive network 
arid introducing new services 
and selective discounts.” 

The OFT said the investiga- 
tion would look at competition 
between bus companies in 
Tyne and Wear, County Dur- 
ham and Cleveland following 
complaints from other bus 
operators about Busways. 

The allegations include pred- 
atory pricing and putting 
excessive numbers of buses on 
a particular route to force com- 
petitors to withdraw from the 
market in Darlington and 
South Shields. 

Sir Bryan said: “I believe 
that [the Busways' free Cares] 
offer may have contributed to 
the decision of Darlington 
Transport to oease operating: 
Efficiency of operation should 
determine who should provide 
the service, not possession of 
the resources to oust competi- 
tors." 

Mr David Walsh, chairman 
of Cleveland County Council's 
transport committee, called for 
a meeting of local bus compa- 
nies to avoid “a full-scale bus 
war” in the county. 

If the MMC ftndH that there 
is a monopoly which acts 
against thw public interest Mr 
Heseltine has the power to 
order the abuses to be reme- 
died or to ask the OPT to 
obtain undertakings from the 
offending company that it will 
not be repeated. 


Accounts 

bodies 9 

merger 

supported 

By Jim Kefly, 

Accountancy Correspondent 

The controversial Bishop 
proposals for the restructuring 
of the accountancy profession 
yesterday won support from 
surveys of two of the leading 
representative bodies. 

Research by the Institute of 
Chartered Accountants in 
England and Wales showed 
that 73 per cent of its members 
were in favour of merging 
some of the six professional 
bodies. 

In order to achieve reorgani- 
sation, 58 per cent were will- 
ing to share the respected title 
of “chartoed accountant". The 
strongest opposition came 
from recently qualified mem- 
bers under 35. 

The Chartered Institute of 
Management Accountants 
(Chna) will publish a survey 
on Monday showing that 90 
per cent of its members want 
to see a reduction in the num- 
ber of bodies. 

A similar proportion want 
the current negotiations under 
the committee chaired by Mr 
David Bishop to continue. 

Both surveys, while indicat- 
ing support for ending the con- 
fusion and rivalry between the 
six bodies, point to some 
obstacles ahead. 

Mr Roger Lawson, president 
of the chartered institute, said 
the concerns of yo anger mem- 
bers needed to be considered. 
“They are looking for further 
reassurance, particularly in 
the area of education and 
training, before they will will- 
ingly share the title of char- 
tered accountant,” he said. 

The Chna survey shows that 
74 per cent want to make sure 
the audit profession does not 
dominate management 
accounting in any new insti- 
tute. And 59 per cent said they 
would wish to be called char- 
tered management accoun- 
tants after restructuring. 


T ackling the numbers problem 

Jim Kelly on the profession’s troubled search for cohesion 


1 .S 


TO the public, accountants are 
all the same. Proof of this can 
be seen on a video being shown 
at a series of accountancy con- 
ferences. 

In it people are waylaid in 
the street and asked what they 
know about accountants. The 
answer is very little, beyond a 
vague idea that the “char- 
tered” ones are trained. 

Given this public perception 
of unity it is ironic that the 
profession is spending a great 
deal of time and money trying 
to achieve a cohesion most peo- 
ple think it already has. 

But leaders of the profession 
are worried that this vague 
recognition is not enough. 
They want a “single voice", 
and a strong lobbying group, to 
fight against government inter- 
vention and steer the profes- 
sion towards unity in the next 
century. 

The present structure of the 
accountancy profession is any- 
thing but uniform. There are 
six professional bodies, six 
presidents, different training 
schemes, different qualifica- 
tions, different headquarters, 
and different styles. 

As Mr Tom Glancy, presi- 
dent of the Chartered Institute 
of Management Accountants, 
told a meeting in Solihull ear- 
lier this week on proposals to 
merge the bodies: “ft's like six 
cats hissing over their terri- 
tory." 

The meeting was one of a 
series of “pan-professionals” 
discussing broad proposals for 
merger, common qualifica- 
tions, and training. 

The mood of the meeting - 
which was probably more posi- 
tive towards merger than 
others held in London and 
Leeds - was best summed up 
by Mr David Bishop, the 
chairman of the working 
party which produced the prin- 
ciples. 

He said: “We can’t stay 
where we are. We can agree on 
where we want to go. What we 
can’t agree is how to get 
there." 

By the end of the meeting 
there was widespread agree- 
ment that accountants differed 


Hotels find room for optimism 


By Michael Sfcapfnkor, Leisure 
Industries Correspondent 

The confidence of hoteliers 
rose markedly in the 
third quarter, boosted by 
an increasingly optimistic out- 
look in Northern Ireland, 
according to BDO Hospitality 
Consulting. 

The proportion of hoteliers 
who were optimistic or very 
optimistic about the next three 
months rose to 80.5 per cent. 


compared with 7BJJ per cent in 
the second quarter. 

The consulting group said 
the figures had been lifted by 
the ceasefire in Northern 
Ireland. All respondents to the 
survey in Northern Ireland 
said they were optimistic. 

More than three-quarters of 
UK hoteliers said they expec- 
ted to increase their room rates 
in the next year. 

Most said their revenues 
were ahead of the same period 


last year, although 13.2 per 
cent said revenues had 
fallen. 

Badness travel was the main 
reason for the revenue rise. 
Three-quarters of hoteliers said 
business travel revenues were 
hi gher than last year. 

Fewer than half reported a 
rise in revenues from leisure 
travellers. 

Staff numbers increased in 
30.3 per cent of hotels in the 
third quarter but fell in 14£ 


per cent. Although 31.2 per 
cent of hoteliers said they 
expected employee numbers to 
lire in the fourth quarter the 
proportion expecting to cut 
staff rose to 23.4 per cent 
The consulting group said 
that while the high proportion 
of establishments planning to 
reduce staff numbers was 
partly seasonal, hoteliers were 
showing greater readiness to 
lay employees off during slack 

periods. 


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T«: 07i4e ona 
Fte 071-9720970 


•FOREX 'METALS ‘BONDS -SOFTS 

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0962 879764 , 

k F \ n F.'cnn«Hou:,£. 22 Scutate Street. Winchester. , 

H.mtrs S023SEH f.w 042- 774067 


BUSINESSES FOR SALE 


CALL FOR EXPRESSION OF INTEREST 
FOR THE PURCHASE OF THE GROUPS OF ASSETS OF 
LN. STASINOPOULOS AJLB.E 
of Athens, Greece 

-ETHNIKI KEPHALEOU S.A. AidminiaUmDoo of Aascb and Liabilities", of 1 
Slooulenkiu Sic, Athens, Greece, in its capacity as Liquidator of “ LN. 
STASLNOPOULQS AJ2JBJ2", a Company with hs registered office in Athens, Greece 
(the “C ompan y**), presently under special liquidation according to the provision of 
Article 46a of Law 189271990 by virtue of D eci sion 506W94 of the Athens Court of 
Appeal, invites interested parties to sahmil within twenty (20) days (rom the pablkaiion | 
of this Notice, noo-btadtag written Expression of Interest for the purchase of one or 
both of the groups of assets described below. I 

BRn5F INFORMATION i 

The Company was established in 1933. In 1978 it became bankrupt end on 3.11.94 it 
was placed tinder special bquidatioa acconliog to the provision of article 4&a of Law 
1892/1990. Its objects included the production of pipes end metal construct! on*. 

GROUPS OP ASSETS OFFERED FOR SALE 

1. A factory, standing on a plot of 13.064 sq_m_ Located at “Vbano” or “HamoaencT in 
the Mascha to Mundpality b jauu the tolkwlag s t re e t s: Levfafi, Xjroo. Haadri and 245 
Piraeus Str. Tbc plant's msdiiivrty and mechanical equipment, as wcD as the Company's 
trade name are also ifldnded in this group of assets. 

2. A factory, san d in g on a plot of 3,438 sq.ni. also located in the Mosduro 
Municipality, between Lcftas, Handri and Cyproa streets, together with the macfaineiy 
Hid mechanical equipment mrjainwt tn 

It should be noted that both of Ibc dam factories are being rented by thud parties since 
198L 

SALE PROCEDURE 

The sale of die assets of the Company shall take place by way of Politic Auction in 
accordance with the Provision* erf Article 46a of Law 1892/1994. as s u pplem ente d by 

nrt. 14 of Law 2000/1991 end snhsapiEnifr smeoded aDd the teems set out In the CkU far 
Tkndem far the purchase of the ebon assets, lo be published in tbs Greek and foreign 
press on the dates provided by the law. 

SUBMISSION OF EXPRESSIONS OF INTEREST - 
OFFERING MEMORANDUM - INFORMATION 

Por the wbejisswo of Expressions if tatntst, as wcD ss in order to obtain i copy of die 
Offering Memor an dum Cor each of die above group* of assets, please contact the 
Liquidator "ETHNIKI KEPHALEOU SJl Administratioii of Assets and Liabilities" i 
SkOHfanxm Sfc 103 61 Athens Greece, TtL-30- 1 -323. 14 .84-7, fax: 4-3Q-1 -321.79.03 
(attention Mo. Marika Fnugalda) or the Liquidator’s agent. Me. George Onumnatitai. 
t Ec o uoroo p Stc 106 83 Athens, ThLrfO- 1-33008.74 


CORRECTION OF INVITATION TO TENDER 
FOR THE HIGHEST BID FOR THE PURCHASE 
OF THE GROUPS OF ASSETS OF 
“METALLURGIKI HALYPS SA” OF ATHENS GREECE 
The drove mentioned invtatton to "fender tor the Holiest ad for tha Purchase 
of tha gratis of Assets of ‘METALLUR&KI HALYPS SA' which was 
putaUahed In tha same newspaper on 4th and Btti of November 1894 to hereby 
Eanflfitfid concerning the brief dttcriptian of the 2nd of the groups of assett 
asfalom: 

2. OTHEH ASSETS. Thaw tadudo tha Mowing: 

a. A storage buMng of 1,500 m* and the 'h pnHndMao of other 2 storage 
buftfinga of 1,965 and 1 ,000 of, raspaeUw^, whteh are ‘fceperaiB vortical 
prc-MMn properties' standing on a plot of land of 7,980 of located In the 
Local Authority of N. Menwnenl, ThessaJonld 

b. Agricultural plot of land amounting to 12.B7S m* at Smandm of Local 
Authorities of N. Moudanio, ChaBddW. and 

ft Agricultural plot of land amounting »4j3l2irf In thaaama area aaplot(b). 




Losing count An accountant reflects the mood or the profession at a meeting to rifa cmw reform 


more within their separate 
organisations than between 
them. The principle of rational- 
isation seems to be widely 
accepted. The details may yet 
prove intractable. 

Mr Roy Loader, a former 
west Midlands president of the 
Institute for Chartered Accoun- 
tants In England and Wales, 
said that keeping up standards 
was the big issue. There might 
be a “dilution” of standards in 
a merger. 

This produced the most awk- 
ward moment of the evening. 
Heads were shaken in embar- 
rassment and eyes turned 
heavenwards. Mr Bishop, a cer- 
tified accountant and a mem- 
ber of the Financial Reporting 
Council, pointed out “We have 
been developing these stan- 
dards together.” 


Mr David Delve, a practitio- 
ner from Birmingham, com- 
plained that the process had 
been “top down and not bot- 
tom up. 1 can see nothing in it 
for me - am I miMing some- 
thing?" 

Mr John Sarringtan, a man- 
agement a ccoun tant from 
Corby, said: “Will the remain- 
ing bodies go on if one of the 
bodies says nor Mr Bishop 
refused to be drawn but 
pointed out that “they are still 
all at the table”. 

Mr Bob Fisher, a chartered 
accountant from Solihull, said 
a better job was needed on pro- 
paganda as members had been 
allowed to “wallow” on the 
issue. “If we don't get together 
we shaQ fail the future and foil 
our country," he said. 

Mr Martin Heathoodk, from 


Stourbridge, a chartered 
accountant with a certified 
accountant as a partner, said: 
“I am very much, in favour of 
these proposals.” He wan the 
loudest applause of the even- 
ing. 

Mr Mike Robinson, from 
Wolverhampton, immediate 
past president of the (bartered 
institute's district branch, said 
the damage had been done by 
the press, which portrayed the 
so-called Bishop plan as dead. 

A warning was left by Mr 
Michael Heseltine, secretary of 
state for trade end industry, 
whose booming voice overlays 
the beginning of the confer- 
ence video, exhorting accoun- 
tants to speak with a single 
voice but adding with exasper- 
ation: “I have been saying this 
for 20 years.” 


Disabled may get cash in 
lieu of community care 


By Andrew Adonis, 

Public Policy Editor 

The government yesterday 
announced plans to devolve 
some of the funding for disa- 
bled people from local authori- 
ties to recipients of services, 
allowing them to purchase 
their own care for the first 
time. 

Mrs Virginia Bottomley, 
health secretary, said cash pay- 
ments would initially be lim- 
ited to “a relatively small 
group, probably those disabled 
people who are able and win- 
ing to manage their care”. 

The devolution of funding 
will require legislation, and 


could pave the way to a mare 
radical shift of funding as an 
extension of the government's 
care in the community 
programme. 

The funding proposal follows 
the annnimfigTrN»nt earlier this 
week of legislation to protect 
disabled people against 
discrimination at work. 

Mrs Bottomley said the fund- 
ing legislation would be per- 
missive, enabling but not oblig- 
ing local authorities to make 
direct cash payments to some 
disabled people in lieu of 
community care. 

She said: “Direct payments 
are a logical extension of the 
Citizen's Charter. They will 


give disabled people greater 
independence and choice and 
involve them and their carers 
more fUHy in their own care” 

She conceded, however, that 
tiie making of direct payments 
“carried some risks”. Local 
authorities will be given 
responsibility for deciding 
whether to make payments. 
“There will be no overlap with 
social security benefits,” she 
added. 

The health department 
refused to he drawn cm the 
amounts it would like to see 
devolved to tndividnals, stress- 
ing that it stin had to consult i 
with “key interests to make j 
sure the details are right”. 


‘covert’ 

links 


By Jimmy Bum* . : 

andWODamUmris „ 

The Labour party yesterday 
accused the . government of 
“covertly encourag fag*^' fr uffl* • 
nigs units between Britain and 
Iraq- in violation .of the United 
Nations sanctions regime.. 

Mr Jack Cunningham^ 
dbadow tiade-and industry sec- 
retary, said;: “We know that^ 
number of British businesses 
have encouraged Iraqi industri- 
alists to talk about contracts. ' 
An this seems to be an abuse 
of UN mandatory economic 

sanctions against Iraq.” 

Mr Cunningham was 
re sponding to a report in yes- 
terday's Financial Times that 
British companies were prepar- 
ing - with the approval of the 
Department of Trade and 
Industry - to resume trade 
with President Saddam Hus- 
seta's regime when sa nc ti on s 
are lifted. 

The DTI has Issued licences 
to the British organisers of two. 
trade fairs in Baghdad due to 
start tomorrow. The Dll said 
ingf. night that -it had issued 
the licences to allow the com-' 
panlee to toik to the -Iraqis 
about humanitarian aid. “We 
roiyri fic w t±ds fella within the 
boundaries set by the UN sanc- 
tions regime,” a spokesman 
said. 

Other government depart- 
ments yesterday distanced 
themselves from moves to 
build stronger trade links with 
Iraq. The Foreign Office said 
that Mr Stephen Crouch, the 
director-general of Iraqi British 
Interests Group, a commercial 
lobby association, did not rep- 
resent the government’s posi- 
tion. 

Mr Crouch was In Jordan an 
September 3 with Mr Henry 
Bellingham, the parliamentary 
private secretary to Mr Mal- 
colm Rlfktad, defence secre- 
tary. 

Mr Michael Colvin, chairman 
of. the Conservative foreign 
affairs committee, said yester- 
day that he had met Mr 
(hooch “two car three times” 
and that he had given informal 
advice to Mm relating. -.to UN 
sanctions. 

He said: “What 1 have been 
saying to Crouch ts. build up 
contacts with businesses in 
Iraq if you want, so when sanc- 
tions are fitted yon are ta la 
position to go.” 

Reports of these growing 
business links drew an angry 
response from the fraqi opposi- 
tion last night 

Mr Hoshya Zebari, an execur 
tive council member of the 
Iraqi National Congress, the. 
main opposition grouping,' 
said: "Trade delegations by 
British and other European 
businessmen are very detri- 
mental to the cause of the 
majority of the Iraqi people. 
This kind of buslness-as-usual 
attitude has encouraged Sad- 
dam to go to war in the past.” 


• 1* ' 

•J , A ' ‘i 1 


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Moves to cut London Jobcentre staff 


By Robert Taylor, 

Employment EdRor 

Staff in the government's 
employment service In London 
and the south east are being 
urged to take unpaid leave 
over Christmas or cut their 
working hours because of over- 
spending in the service’s bud- 
get and the drop in the volume 
of work because of falling 
unemployment. 

Mr David Lifton, the ser- 
vice’s deputy regional director, 
says in a tetter to 11,500 Job- 
centre staff that the situation 

OBrTUARY 


has arisen “because the num- 
bers of unemployed in the 
region have fallen much faster 
th g n anticipated”. 

Mr Lifton tells staff that the 
service will have to shed staff 
because of the continuing fall 
in unemployment 
He adds that the service has 
laid off 750 casual staff as a 
cost-cutting measure but is 
replacing them with staff from 
offices outside London who are 
staying at hotels and given 
travel allowances and £20 per 
day expenses. 

The abolition of casual 


worker contracts is aimed to 
contain spending and match 
staff levels more closely with 
workloads. Paid overtime has 
also been ended. 

The London and south east 
region is offering a number of 
options for staff who might be 
considering work breaks or a 
reduction in their working 
hours. This can involve unpaid 
leave from December 5 to Jan- 
uary 5, unpaid leave during 
January to March, or a cut In 
hours and/or the possibility of 
a job share. 

A spokesman from the 


Department of Employment 
said no other region was suf- 
fering from the same problem 
as Louden and the south east 

Mir Ian McCartney, Labour’s, 
shadow employment minister, 
accused Mr Michael Portillo, 
the employment secretary, of 
being “unable to manage the 
spending of his own depart- 
ment". 

He said: "It seems to be a 
complete shambles. There 
must be a fall, frank and pub- 
lic explanation about how this 
force has been allowed to come 
about" 


Bill Whitbread: leading brewer 


Colonel Bill Whitbread, who 
has died aged 93, was one of 
the leading family brewers of 
the 20th century. 

While typifying the old fam- 
ily brewer of an earlier age - a 
landowner with a love of hunt- 
ing. shooting and riding - he 
took his family business into a 
more modem age with a Jolt In 
the 1950s and 1960s. 

As chairman erf Whitbread & 
Co from 1944 to 1971 he reor- 
ganised the company's anti* 
quated financial structure tad 
devised a shareholding for- 
mula, based on A and B shares 
and a separate Investment 
company, which preserved 
family control while providing 
for the injection of much- 
needed capital 

He Invented tha "Whiteread 
umbrella”, a series of equity 
capital exchanges which 
enabled more than 30 famil y 
brewing companies threatened 
by takeover to shelter under 
Whitbread’s wing. Later, when 
circumstances forced the aban- 
donment of the umbrella, he 
led his company In a deter- 


mined strategy of acquisition, 
rationalisation of productive 
capacity, and the establish- 
ment of national beer brands. 

Whitbread was the great- 
great-great grandson of Samuel 
Whitbread, who founded the 
company In 1742, and the son 
of H.W. "Harry” Whitbread. 
Educated at Eton and at Cor- 
pus Christ! Cambridge, where 
he studied history, he trained 
as a brewer at Truman Han- 
bury Buxton in Burton-upon- 
Trent (192I-23X then worked at 
Fisons' Thetford maltings 
before going to Whitbread 
headquarters at Chiswel! 
Street, London, in 1924. 

He became a managing direc- 
tor in 1927 and served on the 
board imtn 1979. The year 1927 
was significant for tee com- 
pany because Whitbread 
embarked an a big expansion 
in south-east England by 
acquiring three Kentish brew- 
eries and the Mackeson stout 
brand. 

His fflbfwrKy on military ser- 
vice during tee second world 
war weakened tee company's 


management when British 
brewing was required to main- 
tain its output with depleted 
manpower and depreciating 

capital resources. 

It was in the difficult post- 
war years that "Col Bill" came 
Into his own. In 1948 he steered 
through the reorganisation of 
the company’s capital A quar- 
to of the equity was placed on 
tee market by Barings and 
gtaodere. six years later 
Whitbread Investment, a 
wholly owned subsidiary was 
established to acquire' the 
umbrella shareholdings. Thfe 
became the vehicle for the 
directors' retention of a con- 
trolling Interest in the expand- 
ing company. 

Described by the company's 
historian as a “flrebaU”, Whit, 
bread could be impatient and 
rude. Perceptive about the 
Industry, but strongly wedded 
to family loyalties and pater- 
nalism, he needed a foil This 
he found in F.OJLG, “Alex" 
Bennett, who succeeded him as 
chairman in 1971. 

The Wtatbread-Bennett part- 


nership set the company on 
the right road in the turmoil of 
mergers and acquisitions 
which characterised tee indus- 
try from tee late 1950s to the 
early 1970s. 

Under Whitbread the com- 
pany was transformed from a 
relatively small, undercapital- 
teed concern - in spite of its 
claims to “national'’ status - to 
one of Britain ’8 big six brew- 
ers. The umbrella certainly 
protected the independence of 
wme companies. For others, ft 
was the first step to foil 
merger with Whitbread in the 
cjjttpetitlve condWoM of 
tee 1960s. More than 23 camps* 
™ were acquired in tee 
Period 1961-7L 

The merger programme 
8 trained the company's man* • 
a 8 fi ® i ent resources, while the 
of numerous 

productive sites necessitated a 
^mprehensive 

rationalisation. Yet while the 
“^“Pany had to transform its 
Sgg jwttqn to match its 
growth, it always had a repute- 
“Qn for sound management 


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5 UK 


Bids sought for adviser to Railtrack sell-off 


By Nicholas Denton 

Tre ad i ng investment banks were 
yesterday invited to bid to advise on 
the privatisation of Railtrack, the 
company running British Rail's 
track, signalling and stations. 

The government has given invest- 
ment basics between two ?n d three 
weeks to submit proposals. It then 
expects to decide by Christmas. 


The Railtrack privatisation is the 
last significant sell-off for the 
foreseeable future. The mandate rep- 
resents a last chance for banks to 
build a record for advising on priva- 
tisation. 

There is nevertheless some con- 
cern that rail privatisation will get 
caught up in the political battle in 
the run-up to the next election. 

Mr Christopher Clarke, a director 


at Samuel Montagu, the merchant 
bank, said: “I thiny that anybody 
who works for government ha* to 
recognise that there are political 
considerations as well as the 
vagaries of the market." 

Leading contenders are thought by 
the investment banking sector to 
Include die UK houses with tong 
track records in privatisation. 

These include Kleinwort Benson, 


which advised an the privatisation 
of the electricity industry. 

It believes that the experience of 
restructuring a sector before sale 
will prove particularly relevant to 
the Railtrack bid. 

Kleinwort laid claim to expertise 
in the sector with an analyst's report 
putting a real market value on 
Railtrack of between £3-3bn and 
&L3im. 


Samuel Montagu said it would bid 
in conjunction with James Capel, its 
sister broker, and perhaps a third 
party, notwithstanding its rede in 
advising the government on rail pri- 
vatisation in general. 

S.G. Warburg, the Barings group, 

and Schraders are also believed to be 
potential bidders. 

But Barclays de Zoete Wedd, 
which some tipped as a competitor. 


said it did not think it would go for 
tho mandate. 

An executive said: "It is going to 
be quite difficult and terribly 
resource-intensive." BZW Is already 
involved in the flotation of coal 
company RJB and several other pri- 
vatisation-related transactions. 

NM Rothschild is untforfy to truth* 
a bid as it already advises Railtrack 
on privatisation. 


Lib Dems 
get tough 
on gas 
guzzlers 

By Kevin Brown, 

Political Correspondent 

The Liberal Democrats yes- 
terday proposed a dramatic cut 
in vehicle excise duty for 
smaller cars. «wnfyhn»d with an 
increase in petrol taxes, to 
reduce traffic congestion and 
air pollution. 

The party said in a policy 
paper fleshing out aspects of 
its alternative budget propos- 
als that a rise of 20p a gallon in 
fuel duty would fund a 020 a 
year cut in duty for cars up to 
L500CC. 

Mr Matthew Taylor, environ- 
ment spokesman, said the pro- 
posals would shift the burden 
of taxation away from car own- 
ership on to “excessive" use, 
especially by owners of ineffi- 
cient vehicles. 

He said that the UK's “addic- 
tion" to big cars cost the econ- 
omy up to £l7bn a year, 
compared with revenue of 
£L6.6bn. 

Mr Taylor said that the com- 
bination of a £10 dnty and j 
dearer petrol would cut motor- | 
mg bills by £75 a year for aver- 
age rural drivers, £90 for aver- 
age urban drivers and £85 for 
drivers travelling less than 

7.000 miles a year. 

Costs would rise by £60 for 
the average driver of a 2,000cc 
car. but would foil by £135 a 
year for a LSOOcc vehide. 

A business driver averaging 

20.000 miles a year . in a 2,800ce 

car at 24 miles a gallon would 
face an extra bill of £165. Own- 
ing a U5B0CC car would save 
this driver- £55. «. • 


The price is 
wrong for 
some motorists 

John Griffiths on why sales to 
private car buyers are declining 


1 ■- 1 * 

Used can pull 

finance agreements, 96 change on 
same quarter in previous year 


The motor trade is starting to 
fear that sales of new cars to 
private buyers are plunging - 
not because of a lade of con- 
sumer confidence, but because 
of discontent with high prices 
and depredation. 

Evidence is mounting that 
private motorists who can 
afford to boy new cars are 
ii ybaH buying cars which are 
one or two years old. This 
leaves the heaviest burden of 
depredation to be borne by the 
companies which bought them 
new - often at deeply dis- 
counted prices which disillu- 
sioned private motorists 

believe they subsidise. 

Professor Garel Rhys, profes- 
sor of motor industry econom- 
ics at Cardiff Business School, 
said improvements to the qual- 
ity of cars meant that private 
buyers were finding such sec- 
ond-hand purchases largely 
problem-free, and many might 
never return to the new car 
market - “at least not 
until . . . new car prices come 
down to the value-for-money 
level offered by cars in North 
America." 

The National Franchised 
Dealers Association, which rep- 
resents franchised motor deal- 
ers, says that carmakers’ 
“fleets first" marketing priori- 
ties means that the average 
price of a medium-sized family 
car is £2,000 hi gher than It 
would otherwise be. 


Mr Alan Pulham, association 
director, said this reflected two 
factors: 

• The need to fond the dis- 
counts, free servicing and 
other inducements to fleets not 
normally available to private 
buyers. These perks were paid 
for in the main by private 
motorists paying close to the 
manufacturer's list price. 

• Cars available to private 
buyers often bad higher speci- 
fications than they wanted or 
could afford as they were 
aimed mainly at fleets. 

Statistics from the Society of 
Motor Manufacturers and 
Traders show that new car reg- 
istrations rose &5 per cent in 
tire first 10 mnntha of this year 
to 1.71m, compared with the 
same period last year. 

But this was led overwhelm- 
ingly by the business car sec- 
tor - which accounts for 
nearly 60 per cent of the total - 
with a rise of 153 per cent. 

Even taking into account the 
August rush, whan private 
buyers usually predominate, 
registrations to private buyers 
rose just 22 per cent. If the 
August factor is removed regis- 
trations to private buyers fell 5 
per cent in the first half of the 
year, in spite of a 14 per cent 
rise in total registrations. 

But a more telling pointer to 
a consumer revolt comes in the 
latest quarterly statistical bul- 
letin, from HPI, the motor trade 


0 

1993 

9ouco:HPI 


The motor industry's balance 
of trade deficit nearly doubled 
last year to £5.ibn from £23bn 
in 1992, John Griffiths writes. 

The deterioration came in 
spite of UK vehicle production 
reaching its highest level for 
20 years. 

It was caused mainly by 
vehicle markets in continental 
Europe suffering one of the 

finance organisation. This 
shows that the number of new 
cars bought on credit is ahead 
of last year but that the rate of 
increase has fallen in each of 
the past three quarters. 

Many businesses, as well as 
private motorists, buy new 
cars on credit So the weaken- 
ing of new cars bought on 
credit understates the rate of 
decline among private buyers. 

In contrast, purchases of 
used cars an credit have been 
risin g for most of the past 
year. BPTs data for last month 
shows another year- on-year 



steepest foils since the second 
world war. 

This restricted UK exports, 
while skmdtaneoasly focusing 
continental manufacturers' 
attention on the UK vehicle 
market, the only major one in 
Europe to experience growth 
last year. 

Car exports by value 
increased 10 per cent to 

rise of IL1 per cent - almost 
twice the new car leveL 

Ca rmaker s have wiadp much 
of price cots - or at least the 
absence of sizeable price 
increases - as showing fierce 
competition. 

An ATiniy riR by Sewells Inter- 
national, tiie motor-trade moni- 
toring group, concludes, how- 
ever, that the price restraint is 
mare apparent than real- The 
analysis shows the list price of 
a typical best-selling car to 
have risen just 3.7 per cent 
between 1991 and 1991 In that 
period the 10 per cent special 


£4.5hn, including a rise of 
57 per cent in the value of 
exports to non-£U destinations 
and a reduction of only 1 per 
ow»t to other European Union 
states. 

This was more than offset by 
car imports, which rose 21 per 
cent in value to £7-9bn- 

The total value of exports, 
iweimttiig commercial vehicles 

car tax been removed and 
dealers have had their profit 
marg ins cut - slaving the .dis- 
counts they could offer private 
buyers. 

The study concludes: “The 
average new car should be 
around 13 pm cer cent cheaper 
because of the abolition of spe- 
cial car tax the introduc- 
tion of lower HaaTer marg ins " 

Prof Rhys said that the view 
of private buyers that they 
were subsiding fleet buyers 
was misguided because the 
sheer size of the fleet market 
helped. to cover costs which 


and parts and accessories, foil 
1 per cent to £llbn, with 
exports outride the EU rising 
36 per cent to £S3bn. How- 
ever, total imports rose 16 per 
cent, to £160bn. 

The deficit is expected to 
have fallen daring this year, 
mainly as a result of continu- 
ing recovery in continental 
Europe. 

would otherwise fall on private 
buyers. 

But the crunch for car- 
makers, he said, was that , their 
costs were too high and that 
“for the first time British buy- 
ers are becoming aware of the 
car value that Americans get 
for their money." 

He added: “Prices of new 
cars in Europe must come 
down in real terms to North 
American levels. That’s when 
the fur will fly. There are sim- 
ply too many carmakers in 
Europe and they cant all sur- 
vive.'!. 




Growth 
forecasts 
pass 4% 
mark 


By PfiKp Coggan, 

Economics Correspondent 

Two leading City securities 
houses have increased their 
forecasts for UK economic 
growth next year to more than 
4 per cent 

If the forecasts are proved 
correct the UK will enjoy eco- 
nomic growth on a scale not 
semi since the "Lawson boom" 
at the mid-1980s. 

S.G. Warburg’s research 
team has increased its forecast 
for 1995 growth from 3JJ per 
cent to 4 j 5 per cent - the high- 
est prediction from the City - 
alter a rate of just over 4 per 
«»nt this year. The "lain rea- 
son for the higher forecast is a 
better export performance. 

The long-term trend growth 
rate oF the economy is nor- 
mally believed to be between 2 
per cent and £5 per cent Econ- 
omists say a long period of 
above-trend growth - such as 
from 1985 to 198g, when growth 
was 4 per cent or above in 
every year - eventually brings 
inflation 

That has certainly been the 
view of the team at UBS, led by 
Ur BUI Martin. UBS has 
increased its 1995 GDP growth 
forecast to 4J25 per cent 

But while UBS previously 
felt that the economy would 
overheat next year, it now pre- 
dicts this problem will not 
occur until 1986. “This forecast 
p.hangA therefore offers post- 
ponement rather than absolu- 
tion from a day of reckoning," 
said Mr Martin. 

The S.G. Warburg team 
thiTiiffi that underlying infla- 
tion (excluding mortgage, inter- 
est payments) will be 39 per 
cent in the fourth quarter of 
Ttf«t year and 3^ per cent in 
the fourth quarter of 1996. 
Such a modest acceleration 
would still mean that the gov- 
ernment failed to achieve its 
aim of reducing inflation to the 
lower half of its 1 per cent to 
4 per cent target range by the 
end of this psrhamenL 

Meanwhile, a third securities 
house, Kleinwort Benson, has 
also increased its GDP forecast 
fra* next year, but only to 2.7 
per cent from 22 per cent 


! ,-4f 

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io 


FINANCIAL TIMES WEEKEND NOVEMBER 26 /NOVEMBER 


27 1994 


FINANCIAL TIMES 

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

Saturday November 26 1994 


Safety first, 
chancellor 


The UK Budget ought, in normal 
circumstances, to dwarf in signifi- 
cance any parliamentary event 
that occurs in the same week. 
This should be even truer now 
that plans for spending and reve- 
nue are announced in one burst of 
parliamentary fireworks. Yet next 
week's display will start not with 
the Budget, but with the Conser- 
vative party’s flirtation with col- 
lective suicide on Monday. 

If the government were to lose 
the vote on UK contributions to 
the European budget, Mr Kenneth 
Clarke's day would become a 
damp squib. People's thoughts 
would turn at once to the Labour 
party's shadow budget for “invest- 
ment, jobs and fairness”. Yet Con- 
servatives believe in self-interest 
It seems implausible that this 
motivation will desert them alto- 
gether on Monday. Tuesday's Bud- 
get will probably still matter. 

Mr Clarke has a good story to 
tell and will tell it with gusto, for 
in every important respect eco- 
nomic performance has been bet- 
ter this year than the Treasury 
foresaw a year ago. Then gross 
domestic product was expected to 
grow by 2V4 per cent in 1994, but it 
grew 4 2. per emit In the year to 
the third quarter; thn retail 
price index (excl uding mortgage 
interest) was forecast to rise 3 Y* 
per cent in the year to the fourth 
quarter of 1994, but it has risen 
only 2 per cent in the year to 
October, and then the public sec- 
tor borrowing requirement for 
1994-95 was forecast to be £38bn, 
while the Institute for Fiscal 
Studies and Goldman Sachs now 
forecast it at a little over £30bn. 

It is a great story. But it also 
opens a deep trap. The better the 
economy is performing and the 
greater the government's unpopu- 
larity, the bigger the temptation 
to bribe the electorate with dol- 
lops of its own money. Once again, 
there would be large tax cuts at 
the peak of an expansion. Once 
again, the necessary tightening of 
monetary policy would either be 
postponed or be too little. Once 
again, a golden opportunity to sus- 
tain stable growth would be 
thrown away. 

Higher inflation 

From the gap between the yield 
on conventional and index-linked 
gilt« investors expect inflation to 
average 4‘A per cent In the 
medium term. For them, there- 
fore, this is another post-recession 
honeymoon, with higher inflation 
to follow. Obtaining growth after a 
devaluation that followed a deep 
recession is no miracle. But sus- 
taining growth over many years 
would be miraculous. 

The currently unsustainable 
rate of growth, far from justifying 
postponement of the tax increases 
due next financial year, makes 


them still more important There 
is no reason to suppose that the 
underlying trend rate of economic 
growth is any faster than was 
thought a year ago. All that has 
happened is that the economy is 
returning to its (unavoidably 
uncertain) full-capacity level fos- 
ter than was then expected. Corre- 
spondingly, the fiscal position is 
aiao improving more quickly than 

than ImaginpH 

Fiscal tightening 

There are three reasons why 
there should be no discretionary 
reversal of the planned fiscal 
tightening. The first is that on 
plausibly conservative assump- 
tions about full capacity - the 
level of output at which inflation 
would remain stable - the public 
sector borrowing requirement 
would still be about 3 per cent of 
gross domestic product at that 
point This is the most that would 
appear sustainable in the long 
term. If anything, the UK should 
run a tighter cyclically adjusted 
PSBR than that 

Second, it cannot be sensible to 
approach full capacity at a growth 
rate of more than 4 per cent a 
year. Should the further fiscal 
ti ghtening due next financial year 
prove too contractionary for the 
economy, offsetting reductions in 
interest rates (or, more probably, 
slower increases) can always be 
made. Such a further rebalancing 
would, in feet, be desirable. 

finally, if there are to be the 
usual electioneering bribes in the 
1995 and 1996 Budgets, they need 
to be made from a more than sus- 
tainable base. While there is no 
good economic reason to raise 
taxes one year only to lower them 
a year later, it may still be neces- 
sary to raise them if the subse- 
quent lowering is politically pre- 
ordained. This is, admittedly, to 
treat voters as idiots, but maybe 
they deserve that treatment 

So Mr Clarke should blow the 
government's trumpet, stick to his 
announced plans for tax increases 
and focus attention on imagina- 
tive ideas for fiscal reform. The 
treatment of savings is a mess. It 
would be good to wrap tax-exempt 
special savings accounts (Tessas) 
together with personal equity 
plans (Peps). It would be wonder- 
ful if the incentives for the unskil- 
led unemployed to work were to 
be improved. It would be still 
more remarkable if the chancellor 
were to avoid introducing more of 
the distorting gimmicks that all 
chancellors love. 

Such fireworks are optional. 
What is essential is for the chan- 
cellor to avoid felling into the trap 
of excessive stimulus that 
engulfed so many predecessors. 
He made the right decisions last 
time. He should stick to them this 
year. 


T he government finds 
itself trapped in a politi- 
cal world where a state- 
ment of the obvious 
becomes an extraordi- 
nary cabinet suicide pact; where 
behind every cock-up lurks a dark 
conspiracy. 

Rightwing plotters tour the lob- 
bies of Westminster collecting 
names in support of a leadership 
challenge. A Tory deputy ch a ir m an 
finds his private gloom about the 
party’s electoral prospects splashed 
across the front pages of the news- 
papers. A vicechairman is obliged 
to resign after penning a xenopho- 
bic attack on Britain’s European 
partners. Yes. Mr John Major has 
had another dreadful week. 

So the next few days will provide 
yet another of those all-too-famlliar 
tests of the prime minister's author- 
ity. On Monday he faces a confi- 
dence vote on legislation to increase 
Britain's contributions to Brussels. 
By Wednesday morning he will 
know whether one of his enemies - 
possibly Mr Norman Lamont, the 
former chancellor ** has mustered 
the requisite 34 nominations to 
mount a formal challenge for the 
party leadership. 

The odds are that Mr Major will 
win Monday’s vote with room to 
spare. The re-election on Thursday 
of frhg loyalist Sir Marcus Fox as 
chairman of the backbench 1922 
committee applied a brake on the 
Tories' slide into anarchy. The 
broad hint yesterday from Mr Doug- 
las Hurd, the foreign secretary, that 
the government would offer a refer- 
endum before joining a single Euro- 
pean currency will provide a line of 
retreat for the softer rebels. 

Mr Kenneth Clarke, the chancel- 
lor, will follow by opening Monday’s 
Commons debate with a promise of 
a clampdown an European Union 
fraud. The Eurosceptics will be 
assured that the Treasury’s receipts 
from the imposition of value-added 
tax on domestic fuel will not line 
the pockets of crooked I talian wine 
producers. Even if a dozen irrecon- 
cilables were to ignore such over- 
tures and risk expulsion from the 
parliamentary party, the votes of 
Mr James Molyneaux's Ulster 
Unionists would save the govern- 
ment 

The betting on whether there will 
be a leadership contest is also on 
Mr Major’s side, but less certainly. 
A week ago, the notion seemed Ear- 
fetched. Plenty of his backbenchers 
would be happy to see Mr Major 
depart 10 Downing Street. But not 
enough were ready to attach their 
names publicly to a formal chal- 
lenge. 

Now the mood, if not yet the cold 
arithmetic, has changed. Mr Major's 
cabinet colleagues admit a contest 
is possible. Mr Lamont is said to be 
ready to exact his revenge for his 
dismissal as chancellor is months 
ago. No challenger would defeat Mr 
Major. But he might fatally wound 
him. Logic dictates the threat wDl 
come to nothing, and the odds are 
still against But logic is a scarce 
commodity these days on the Tory 
backbenches. 

Amid this hysteria, next Tues- 
day's Budget has been all but for- 
gotten. It might well pre-empt a 
leadership contest Mr Clarke does 
not have a bag of populist tricks to 
dispense to the panickers on the 
backbenches- But the signs are that 
he will delight the rightwing with 
deeper spending cuts than pre- 
dicted. He will also publish projec- 
tions fra- public borrowing that offer 
the chance - if not the certainty - 
of income tax cuts before the gen- 
eral election. Mr Clarke, described 
this week by one rightwing Tory as 
“dodgy on Europe but otherwise the 
best chancellor since the war", is 


The self- destructive habit of the UK's 
Conservative party casts doubt on its will 
to govern, says Philip Stephens 

Mr Major's 
dreadful week 



Clockwise from left* Prime Minister John Major, Douglas Hurd, foreign secretary; Sr Teddy Taylor, Enrosceptic 
MP; Norman Lamont, former chancellor; John Maples, Tory deputy chairman; and Kenneth Clarke, chancellor 


assured of another jump in his per- 
sonal rating. Mr Major needs him. 
but must also envy his chancellor's 
natural authority. 

When the prime minister said 10 
days ago that he would not tolerate 
a rebellion by his party’s Euroscep- 
tics over Britain’s increased contri- 
bution to the Brussels budget, the 
conventional wisdom backed his 
judgment. By making the vote an 
issue of confidence, he would avoid 
a repeat of the trench warfare that 
nearly destroyed the government 
over the Maastricht treaty. He 
would win quickly and decisively. 
This time no one could resurrect 
the accusation of weakness. 

That was the theory. But once 
a gain the prime minister and hlS 

cabinet colleagues - the suggestion 
of an imm ediate showdown came 
first from Mr Hurd and was backed 
strongly by Mr Clarke - underesti- 
mated the party's malcontents. Mr 
Major has a House of Commons 
majority of 14, likely to fell to 13 
after next month’s Dudley by-elec- 
tion. There are up to twice that 
number of Conservative MPs whose 
central ambition is to oust him this 
side of the next general election. If 
their efforts lead to defeat at the 
election, they are prepared to coun- 
tenance it 

Not all the putative rebels over 
Europe are driven by personal ani- 
mosity. Sir Teddy Taylor, the MP 


for Southend, has honourably 
opposed Brussels for as long as any- 
one ran remember. 

Some are motivated by the con- 
viction that the next few years 
mark Britain’s last nharmn to break 
away from an Emerg in g European 
superstate. Mr W illiam Cash is 
widdy regarded as a bore bat he Is 
a sincere one. Others represent the 
curious relics of postwar chauvin- 
ism who tend to prop up their local 
saloon bar before tneiring into a tra- 

No challenger for the 
Tory party leadership 
would defeat Mr 
Major. But he might 
fatally wound the 
prime minister 

dztional Sunday lunch. Like Mr Pat- 
rick Nicolls, the Tory vice-chairman 
forced to resign after an outburst in 
his local newspaper, they see Ger- 
many as a nation of warmongers 
and France as a nation of collabora- 
tors. 

But for a determined clique of 
irrecondlables. Europe provides the 
most fertile ground on which to 
prosecute their assault on Mr 
Major’s premiership. They despise 
him. Their ambition is to depose 


Mm For thanij plotting fn the Com- 
mons corridors has become a way of 
life. 

It was their enmity that forced Mr 
Major into the position of demand- 
ing that everyone a m t- m d the cabi- 
net table sign up publicly to the 
threat that the govern would resign 
if Monday’s vote was lost There 
could be no question, as same of the 
malcontents were suggesting; of a, 
defeat i«trHng to nothing more than 
Mr Major's replacement in 10 Down- 
ing Street by Mr Clarke or Mr Mich- 
ael Heseltme, the trade secretary. 

Mr Clarke made the point first in 
a typically frank briefing far politi- 
cal journalists. The full cabinet had 
.backed the financing deal negoti- 
ated by the prime minister in Edin- 
burgh two years ago. If it could not 
get such an international accord 
tiffoogh the Commons it could not 
remain in power. No member of the 
cabinet honourably could seek to 
avoid an election, by dumping Mr 
Major. 

Even the rightwing members of 
the cabinet who grumbled initially 
about the strategy admitted that it 
was a statement of the cahstitutionr 
ally obvious. But in the present 
atmosphere, it was inevitable the 
decision would be portrayed as a 
collective suicide pact The irrecon- 
dlables - who are not noted for 
their consistency and who have far 
so long criticised Mr Major as a 


rosk ieiMfer r now accused him of 
“bullying" his party. . . - A 

It may he fhat'the prime nmnster 
wfll never be able to reassert .real 
authority; that after 15 years,™ 
gfljce, the Conservative party nas 
'become ungovernable.' As it stagr 
™ r« from one mishap to anpther,- 
rnanv within the administration 
h^begim to adxnit 
the mood in tiie country, will he 
the critical determinant The m al- 
contents teed off the insecanty of 
the less committed majorn y on tne 
Tory backbenches. They.in turn are 
.iirai by fear of loan* then- seals. 

The government' has. "been 20- or 

more points behind in the opinion 
polls for two years. No past-admin- 
istration has ever made up so nmch 
lost ground. Maybe,the waverers 
say to themselves, a new leader 
(and it would he Mr Clarke or Mr 
Hese Etine, -not Mr Lament) might 
just ttan it around.. 

. -flic scale of that task '.was out 
Hired in the confidential memoran- 
dum prepared by- Mr John Maples, 
the Tory deputy ch airman , and first 
published in the FT at the stmt of 
the week. This included the. ebser- 
vatkm that large pay awards cause 
“real offence” to dtefflustansd Con? 
servative voters. With painfully 
exquisite timing; the leak of the 
document coincided with the 
announcement that Hfr Cedric 
Brown, the ddef executive of .the 
privatised monopoly British Gas, 
had been awarded a £205,000 a year 
annual pay increase. 

S ave for his Indiscreet lan- 
guage, Mr Maples’ broader 
political assessment con- 
tained few suprises. Vot- 
ers are fed up with the 
gOvru -rrmant and - it wffl feke mOTS 
than a litany of populist promises 
from Mr Howard, the home- 

secretary, to restore the Conserva- 
tives' reputation as the party off law 
and order. Flooding the hospitals 
with highly-paid accountants has 
not enhanced the party's efforts to 
appear a faithful guardian of the 
health service. 

Nor would anyone who has 
watched the -party’s clumsy 
attempts to destabilise Mr Tony 
Blair, the newly-elected Labour 
leader, have been taken aback by 
Mr Maples’ jud gment that he poses 
a threat to the Conservatives’ grip 
an the centre ground. 

But it was- the memorandum’s 
fr ank admission that the economic ' 
recovery is not delivering a political 
upturn that struck the most worry- 
ing cbm d with' nervous Tory BSPs. 
They should have realised that vir- 
tue does not guarantee electoral 
success. The combination of steady 
growth and low inflation is not 
enough for most families to wipe 
out the costs of the recession and of 
the biggest tax increases since the 
second world war. For the average 
Tory voter, Hving standards, as Mr 
Maples admits, have been falling 
not rising. 

On Tuesday, Mr Clarke will 
assure them that the tide . Is begin- 
ning to turn. Virtue eventually will 
put money in people's, pockets: If 
the party keeps its nerve, a fifth 
election victory is still possible. By 
ftis time next week, the present 
storm, like so many before it, might 
well have abated, giving Mr Major 
once again the breathing space to 
begin rebuilding his government's 
fortunes. 

But as the weeks and months go 
by, it becomes harder and harder to 
see how that will be possible before 
an election due in, at most, 2% 
years. R is too early to be certain 
the position is irrecoverable. But 
one thing is dear. The Conservative 
party must decide whether it really 
wants any longer to govern Britain. 



rjnitb '*[?? 


' ' 

' V ... 


MAN m THE NEWS: Oscar Luigi Scalfaro 


Italy’s ultimate 
referee 


T he deepening problems of 
the Berlusconi government 
have turned the political 
atmosphere in Rome ven- 
omous and conspiratorial. Wild 
rumours circulate at high velocity. 
Emissaries have begun to test new 
alliances. Knives are being sharp- 
ened to settle old scores. 

In the corridors of parliament and 
newspaper newsrooms, the talk has 
ceased to be whether Mr Silvio Ber- 
lusconi can survive as prime minis- 
ter after being placed under investi- 
gation for corruption this week. It is 
rather of when and how he win go, 
and which government will come 


Moving to centre stage is Presi- 
dent Oscar Luigi Scalfaro, the 76- 
year-old head of state and one of 
Italy’s most experienced politicians. 
From the Qurrinale Palace, once the 
residence of popes, he has been 
issuing terse statements indicating 
obliquely how events should unfold. 

The president has made no secret 
of his distaste for the madia mag- 
nate turned politician, and does not 
share Mr Berlusconi's view that be 
can emerge fighting from the cur- 
rent crisis. Although Mr Scalforo's 
constitutional authority is limited, 
his role will be crucial as events 
unfold. He has the power to dissolve 
parliament and to ask someone to 
form a new government 
President Scalfaro is also recog- 
nised as the ultimate referee of 
Italy's volatile political system. 
Thus he enjoys considerable powers 
of moral suasion through mahirig 
his own views known. To this must 
be added his enormous experience, 
having entered politics in 1946 in 
Italy’s first postwar parliament 
During the six months of the Ber- 
lusconi administration. President 
Scalfaro has frequently felt obliged 
fffl H ftra premier and bis malfrinn 


to order. From the outset, he 
warned Mr Berlusconi of the poten- 
tial problems arising from a conflict 
between his role as premier and his 
ownership of Fininvest Italy's sec- 
ond largest private group. 

He Intervened, for example, to 
remind the coalition fiu* the HAI 
state broadcasting network could 
not become a tool of government 
He took the side of the Bank of Italy 
when government tried to impose 
an outside candidate as new direc- 
tor-general. And as head of the 
higher magistrates' council, the 
governing body of the judiciary, he 
helped deflect government com- 
plaints that the magistrates were 
victimising Mr Berlusconi. 

On each occasion, his views have 
carried more weight than is strictly 
due to the presideait, nnriermtoing 
the government’s position. Indeed 
Mr Berlusconi and his supporters 
see the president as a fifth col umn 
working to bring down the right- 
wing coalition government 

Relations between the president 
and the government this week came 
dose to getting out of control Presi- 
dent Scalfaro was furious over the 
tone and content of Tuesday’s tele- 
vised address by Mr Berlusconi, 
given when he learnt that he was 
under investigation for alleged cor- 
ruption while running his business 
empire. Mr Berlusconi attacked the 
Milan magistrates for conducting a 
vendetta against him, and threat- 
ened early elections. 

Presidential aides promptly 
leaked to the media their views on 
Mr Berlusconi - “a naturally 
unpleasant man who believes he Is 
wnpotico to everyone". The Berlus- 
coni camp countered, labelling Mr 
Scalfaro as “the worst of the old 
Christian Democrats concentrated 
in one pilT. 

Matters were made worse when 


h 



Mr Giuseppe Tatarella, the deputy 
prime minister, warned President 
Scalfaro that he was in no position 
to moralise when he had his own 
dirty linen. Mr Tatarella alluded to 
Mr Scaifaro’s links while interior 
minister between 1933 and 1987 with 
the discredited intelligence services. 
His name was frequently mentioned 
during a recent trial of senior mem- 
bers of the services found guilty of 
embezzling more than 550m. who 
alleged he was aware of their prac- 
tices while interim' minister. This Is 
Mr Scaifaro’s most sensitive spot - 
and could yet weaken his position. 

However, the president was 
reportedly so angry at these insinu- 
ations, he postponed for 24 hours a 
formal meeting with Mr Berlusconi 
to discuss the future of the govern- 
ment After the meeting, held yes- 
terday, the , presidential office 
refused to comment and it was left 
to the prime minister to say dog- 
gedly: “There is no war with the 
Qinrinale and it was a normal dis- 
cussion as on every other occasion." 


However, Mr Berlusconi felled to 
obtain the message of support from 
the president he needs to help him 
survive. He and President Scalfaro 
are at odds on almost every aspect 
of how to proceed. 

The only common ground seems 
to be a realisation that a financial 
crisis cannot be added to the politi- 
cal uncertainty. Both are agreed 
that priority must be given to pass- 
ing the 1996 budget through parlia- 
ment. This mains the prime minis- 
ter need not resign immediately just 
because he is under investigation 
by Milan magistrates for as-yet 
unproven allegations of corruption. 

But Mr Scalfaro has already 
begun to sound out the prospects 
for a successor government He is 
against a quick dissolution of par- 
liament. since the last elections 
were only in March. He wants to 
build a broad-based government 
that would look to the Popular 
party (PPD - the framer Christian 
Democrats - in the centre and 
would embrace the former commu- 
nist party of the Democratic Left 
(PDS). This new coalition would 
probably not include the neo-fascist 
MSI/National Alliance, the current 
mainstay of Mr Berlusconi's govern- 
ment along with his Forza Italia 
movement Its task would be lim- 
ited to rewriting the defective elec- 
toral laws of August 1993 and 
introducing constitutional reforms. 

Mr Berlusconi, in contrast, sees 
his only real chance of survival in 
staying close to the MSI/National 
Alliance and going to the country 
as quickly as possible. He would 
hope to cast himself in the role of a 
victim of the old political system, in 
this scenario, Mr Scalfaro, elected 
in 1992 by a subsequently discred- 
ited parliament, would be presented 
as one of the chipf villains. 

The stage is now set for a show- 
down between the president and the 
prime minister. With political guile 
pitted against an inexperienced pre- 
mier cornered like a wounded ani- 
mal, the odds must be on Mr Scal- 
faro getting his way. 

Robert Graham 


TH E 


DAVID 

T HOMA S 

PRIZE 

David Thomas was a Financial Times journalist killed on assignment in 
Kuwait in April 1991. Before joining the FT he had worked for, among 
others, the Trades Union Congress. ~ 

His life was characterised by original and radical thinking coupled 
with a search for new subjects and orthodoxies to challenge. 

In his memory a prize has been established to provide an annual study/ 
travel grant to enable the recipient to take a career break to explore a 

theme in the fields of industrial policy, third world development or the 
environment. 

The theme for the 1995 prize, worth not less than £3,000, is- 
DOES FREE TRADE THREATEN THE ENVIRONMENT? 


Applicants, aged under 35, of any nationality, should submit up to 1000 
words in English on this subject, together with a brief c.v. and a proposal 
outlining how the award would be used to explore this theme further 
The award winner will be required to write a 1500 to 2000 wotd 
essay at the end of the study period. The essay will be considered for 
publication in the FT. il 


CLOSING DATE JANUARY 6 1995 
Applications to: 

Robin Pauley, Managing Editor 
The Financial Times (L) 
Number One Southwark Bridge 
London SE1 9HL 


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FINANCIAL TIMES WEEKEND NOVEMBER 26/NOVEMBER 27 1994 


Inequality in society wedding 


Alison Smith analyses the merger 
plans of the Halifax and the Leeds 


Halifax and Leads: h uB d hn a brighter future 


T he annmimwwpnt yesterday 
of merger plans between 
Halifax, the UK’s largest 
building society, and T^c^c 
Permanent, the fifth largest, surprised 
many observers with its timing. But 
the likelihood of mergers is the sartor 
- and the desire of both societies to 
find partners - is not new. 

However, yesterday's plans have 
gone further than many expected in 
the intention that the combined 
org ani sa ti on should become a public 
limited company and seek a Stock 
Exchange notation. The benefits of 
conversion Jbr Abbey National, the 
first building society to have chf*«»r» 
pic status, have not been so self-evi- 
dent that any o ther s have fol- 
lowed that path. 

Mr Jon Foulds, the Halifax chair- 
man, who will chair the new organisa- 
tion, was upbeat about the conse- 
quences, however: “We propose to 
create a new force in personal finan- 
cial services,” he «»>*- 
The wootng of Leeds by Halifax 
began with talks in the spring, after 
the announcement of an agreed 
£1.8bn cash bid by Lloyds Bank for 
Cheltenham & Gloucester building 
society, the sixth largest 
Leeds had already been to the altar 
once recently, in merger ta l k s with 
National & Provincial Budding Soci- 
ety - a move that would have created 
the UK’s third-largest society. When 
those broke down up in October last 
year, Leeds was left looking forlorn. 

At its flrmnal general nipgting in 
May, Halifax made clear it was seek- 
ing a merger in pursuit of its mission 
to be the UK’s biggest and best pro- 
vider of personal financial services. 
The problem was whether any society 
would want to be the Junior partner. 

Halifax and Leeds win have to per- 
suade several audiences that they 
have ended up with the right match: 
• The members of the two societies 
- Investors and borrowers - who 
must approve by substantial majori- 
ties both the merger and the later 
conversion to pic status. 

• The money markets on which the 


new organisation will borrow whole- 
sale funds - at rates that will depend 
cm the judgment of the viability of the 
merger made by the US ratings agen- 
cies. 

• The capital markets wOl also have 
to be convinced that the p**™* for the 
future make sense if the flotation is to 
be successful. 

Some points in the merger plan 
have a wide appeal. Members, staff 
and financial monitors are likely to be 
pleased with the prospects for growth 
for the new organisation which will 
be able to provide a wider range of 
products to both societies' customers. 

Leeds, for example, does not offer a 
current account with a cheque book; 
Halifax does, and will want to sell the 
service to Leeds customers. Within 
five years, Halifax is likely to want to 
use the greater freedoms that accom- 
pany its new status to produce as well 
as sell personal lines of general insur- 
ance. such as motor and travel 

No cash sum is on off er for mem- 
bers, as a result of the merger, to 
compare with the share of the £L8bn 
on offer from Lloyds Bank to Chel- 
tenham & Gloucester members. But 
any dismay among members that 
they will not receive such a bonus is 
likely to be outweighed by the pros- 
pect of free shares when the morged 
building society is floated. 

The advantages to Hniifax of acquir- 
ing around 4 per cent of the current 
UK mortgage market and access to a 
further &5m customers without hav- 
ing to make a cash bid are dear. The 
benefits to the Leeds of this deal are 
much less obvious. 

The society will have the advantage 
of being reunited with Mr Mike Black- 
burn, the chief executive who left the 
Leeds in February last year to run 
Halifax. And being part of the larger 
organisation - likely to be the third 
largest UK high-street bank by asset 
size - will ensure that it is not 
squeezed out in the Increasingly com- 
petitive financial services sector. 

The Halifax’s contribution to the 
new group is much the larger - and 
not merely in terms of the £S9.9bn it 



EflftSfan (m« at-7 .CBUKnfr** 35*9$ 


UK buMfog society 
ranMns by total ***** 

• NarntwrcfwnpioyS** • 
Number of branctos 
-NwrtortfagwiqieB ’ 

Number of Inveettig membeis 

. WTuMr uuiuwiy JTwim 
Pre-tax amusi prott 

CMUnoaneotio ' 

SovMcHatfn/tMdB 


provides of the £90bn assets of the 
combined operation. It will also conr 
tribute its ™mp and its head as 
well as its rhairmaw and chief execu- 
tive. Leeds is bringing the brand 
names of some of Its products. 

But rather than giving up its iden- 
tity to Join Halifax, the Leeds could 
have chosen another, less powerful 
partner that would have allowed for a 
more equal relationship within an 
organisation large enough to survive. 
Its motivation in rfwv«ing ’Halifax fa 
mystifying co m petit o rs. 

“I can’t see what’s in it for the 
Leeds,” one chief executive com- 
mented. “I was surprised,” said 
another, ”1 thought they would reject 
it because of the likely branch clo- 
sures.” 


moxzzdp 



approx 8m 


apprtsc W300 


appose 2m 


W hat the future of the 
branch network might 
be is an Issue requiring 
dfverse messages about 
the benefits to different audiences. 

The two organisations have more 
than 1, 10 0 branches, with consider- 
able overlap. The temptation to 


rationalise the combined branch net- 
work and cut expenses win be strong. 

Mr Boger Boyes, Leeds’s acting 
chief executive, in x ist* 8 that there 
would be no need for large numbers 
of branches to be dosed stair to 
be made redundant He argues that 

the planned pxpararinn of business in 

financial services win provide a use 
for the extra branches. The new 
organisation is planned to employ 
about 27,000 staff and re- training, 
redeployment and natural wastage, 
s h ould mean no naafl for compulsory 
r edundancies, he hopes. 

That stance, expressed also by Hali- 
fax, is intended to reassure members 
that they will not suffer a loss in the 
availability of services, and to give 
confidence to staff that there will not 
be massive job cuts. 

There is yyw* merit in expressing 
this view: the outspoken way in 
which 1,600 job tones among 9,800 
staff were envisaged in the announce- 
ment of the merger between Leeds 
and National & Provincial last August 
was nn ** of the factors in its downfall. 

But retaining most of the existing 


Mat Shcttwa. CM w*aA»HNBK 

branch network would be Car from 
reassuring to *h«* credit ratings agen- 
cies. It mnlH aim nnriprmin n fha tWO 

societies’ current cost to income 
ratios of around 40 per cent - below 
tbe sector average. 

The shadow over societies is the 
merger of Nationwide and Anglia 
h anding societies in 1987. The two 
businesses were not properly com- 
bined, and it is only relatively 
recently that Nationwide has shown 
Signs Of tackling the high cost to 
Income ratio and regaining competi- 
tiveness. 

Halifax competitors believe that 
whatever is said to ensure a pproval of 
the merger, the society's management 
will be prepared to take tough deci- 
sions on rationalising tha combined 
organisation. 

Only if it does — ami «tn makA the 
most of its adiipii niy and wider pow- 
ers to provide a wide range of finan- 
cial products efficiently - will yester- 
day's announcement of merger and 
conversion set the pattern for tomor- 
row’s moves mrvmg other s oefattse. 
They will be watching closely. 


.-■WT TV.™ 




Hugh Camegy and Karen Fossli on the passions stirred in Norway by Monday’s EU referendum 

More gripping than 
the winter Olympics 


F rom tbe barren arctic 
northlands, through 
the spectacular moun- 
tain valleys and fiords, 
down to Oslo’s humdrum inner 
suburbs, the word Nei! has 
been inescapable in Norway 
this year. 

It has been carved into hill- 
sides, daubed on cows, flown 
from flagstaff* and hung on 
banners across streets. One 
fanner won himself a front- 
page picture in a national 
newspaper, grinning beside a 
sign he had erected barring 
European Union visitors from 
his campsite. A few weeks ago, 
a group of women formed 
“Blondes against the EU". 

The passions stirred by Man- 
day’s referendum on joining 
the EU have been exceeded 
recently only by the Iffleham- 
mar winter Olympics last Feb- 
ruary - when Norway Skied off 
with a horde of gold medals - 
and the football World Cup 
finaia in July, for which Nor- 
way qualified for the first time 
in more than 80 years. 

As the vote draws near, the 
confidence of the No c amp has 
Tyx»n dented. Its commanding 
lead in the opinion palls has 
been eroded since Sweden 
voted in favour of membership 
earlier this month. But even it, 
as the latest polls suggest is 
possible, the Yes campaign 
achieves an against-the-odds 
victory, Norway will have Ifved 
up to its billing as the most 
Euro-sceptical of the four 
nations due to join the EU next 
year. (Austria and Finland, 
like Sweden, have voted Yes.) 


Last w eekend, thA No camp 
organised the largest rally in 
any of the -four prospective 
member countries: 25,000 peo- 
ple streamed into Oslo in driv- 
ing rain and snow to boo Brus- 
sels. It was the biggest political 
demonstration in Norway since 
the second world war - even 
bigger than any rally during 
the campaign in 1972. when 
Norway rejected membership 
of the European Community in 

aw partial- p^fRi-AWiiTim . 

In the Oslo crowd was Mr 
Shjalg Jensen, 27, who bad 

'Brussels has a 
different culture 
from normal 
people like us in 
the north’ 

travelled L200km from Firm- 
mark, Norway's northernmost 
county, where the country bor- 
ders Russia and the arctic Bar- 
ents sea. Dressed, like many in 
the crowd, in traditional knick- 
erbocker trousers and a floppy 
felt mountain hat, with the 
Norwegian flag sticking out of 
his backpack, Mr Jensen 
declared: “The question of join- 
ing the EU is a question of our 
values, and that is why we are 
against joining. 

“They say the politicians in 
Brussels are the voices of the 
people, but what do they 
understand? Their realities are 
golf and socialising. Theirs is a 
d if feren t culture from normal 
people like us in the north.” 


Nor was Mr Jensen worried 
by the arguments of Mrs &o 
Harlem Bnmdtiand, the formi- 
dable prime nwwigfer who le a ds 
tiie Yes campaign. She has 
warned that Norway could be 
dangerously decoupled from its 
Nordic and European neigh- 
bours. “I think after a No vote, 
we will have the same Norway 
that exists today,” said Mr Jen- 
sen. “Our economy is strong - 
it is tiie strongest in Europe." 

Norwegians’ hostility to the 
EU is based on a sense of their 
special place in European cul- 
ture, a jealously guarded politi- 
cal indapen deuce , awH th e eco- 
nomic security gained from 
North Sea ofi. 

The very word “radon" pro- 
vokes a grimace in a country 
that only gained independence 
from Sweden in 1905 and was 
occupied by Nazi Germany 
during tbe last war. 

As for political isolation, 
many Norwegians believe that 
by joining the EU they would 
increase their separation from 
the of dprjgt mi making Tt 
is already a long way from 
here to Oslo," say people in the 
regions. “We will be even fur- 
ther away from Brussels." 
They are happy to confine 
themselves to membership of 
Nato. 

The oil bonanza, meanwhile, 
has allowed Norway to indulge 
its preference for a social sys- 
tem heavily weighted towards 
state welfare and lavish subsi- 
dies for rural communities. 
And fear of losing control of its 
petroleum and fish riches out- 
weighs the mostly intangible 



‘Net* has been inescapable in Norway this year, though the lead in the polls has been eroded rhimt 


economic benefits EU member- 
ship might bring. 

Unlike both Sweden and Fin- 
land, which have recently suf- 
fered deep recessions, Norway 
has fared quite well, with rela- 
tively low unemployment (a 
total of about 8 per cent com- 
pared frith 13 per cent in Swe- 
den and 18 per cent in Fin- 
land). Warnings from the Yes 
camp that petroleum revenues 
will soon peak, exposing the 
weak state of Norway’s 
onshore industrial base, make 
little impression on many Nor- 
wegians, made comfortable by 
the generous redistribution of 
oQ wealth. 

“A market economy for 
north Norway will never 
work," said Mr Mats Afainsan, 
a docker from Hammerfest, at 
the Oslo rally. "Currently 


there is protection erf the econ- 
omy, but joining the Union 
implies there would be totally 
free access for outside competi- 
tion. We are not fools - we’ve 
seen this happen before in 
other countries.” 

The counter-argument, that 
Norway could find itself 
excluded from European mar- 
kets, also has little Impact on 
the No camp. It believes that 
oil and fish can continue to be 
tbe backbone of the economy. 
“They don’t trade with us 
because they are sorry for us," 
proclaims Ms Torhild Lamo, a 
No campaigner in the north- 
western town of Bodo. “They 
trade because they need what 
we’ve got. We have the natural 
resources, so I don’t think that 
would be a problem." 

Mrs Bnmdtiand hopes that 


enough people in the urban 
areas, which are more popu- 
lous than the regions, win 
reject these arguments, hi the 
cities, her appeal for Norway 
sot to vote itself out of the 
political and economic develop- 
ment erf Europe shows signs of 
hifttng home. 

But even if she wins, it win 
be an uneasy victory over the 
outlying regions, which have 
traditionally embodied Nor- 
way’s national identity. “We 
are a very different country, 
we have different values and 
we are a different people. We 
want to protect the value erf 
life in Norwegian society," said 
Ms Anne Eager Tatingtirin, the 
principal leader erf the No cam- 
paign, at a meeting in Oslo last 
week. It won her a standing 
ovation. 


Decision denies chance to 
pioneer superhighways 


From Mr Graham Alien MP. 

Sir The government s 
announcement that it wfll not 
lift the ban on BT and allow it 
to broadcast entertainment ser- 
vices to homes on a national 
basis is an unwelcome and 
inopportune decision at a toe 
whenthe UK’s European and 
international competitors are 
surging ahead ^ tafecom- 
munications revolution rGw 
eminent offers telecoms groups 
wider superhighway role , 
November 23). _ » 

What this means for the 
country and economy is that 
we will faB behind the worn 
leaders in the dovelopnKnt^a 
superirfghwa?’ and pur Q tons 
^mbedenied the tremendous 

£y^p^^ beareat 

BT and Mercury 
in European mar- 
g® ^prevented from 

ssrsa#"- 


the certainty of knowing when 
they will be able to enter the 
market here. What was hoped 
for from the government was a 
clear Indication as to when BT 
and Mercury would be able to 
start their promised £isbn 
investment To wait until 2001 
provides them with no incen- 
tive whatsoever to take up the 
offer of servicing areas not yet 
bid for by the cable companies. 

AH the gov e r n ment has suc- 
ceeded in doing is to ensure 
that Britain essentially leaves 
the race and comes in only 
when the rest of the world has 
developed fully and is on to the 
next revolution. We will still 
be trying to catch up and be 
felling hwhinfl in new develop- 
ments and technologies. The 
economy suffers and the people 


LETTERS TO THE EDITOR 

Number One Southwark Bridge, London SE1 9HL 

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


Coal enterprise in 
UK's best interests 


Restrictions on radio 
licences inequitable 


The government has denied 
to the UK the opportunity to 
pioneer new development for 
the good of the ordinary dti- 
m 

Graham Allen, 

shadow spokesperson on media 
and superhighways,. 

House of Commons, 

London SW1A QAA 


Prom Mr William F MorrelL 

Sir, May 1 ask whose inter- 
ests are being served by the 
seemingly endless campaign to 
rubbish RJB Mining? This 
company's efforts to secure 
intact a significant part of the 
UK coalmining industry serve 
the nation's best interests 
(“Putting £lbn down the 
mines”, November 23). 

We each have a duty to see 
our considerable natural 
resources and expertise fully 
exploited. Surely we should 
applaud, support and be thank- 
ful for such a display erf confi- 
dence, enthusiasm and enter- 
prise. 

A week and fragmented coal 
industry brings more than mis- 
ery to the already hard-pressed 
mining communities. It creates 
more than a little financial 
pressure on to mining equip- 
ment manufacturers which 


belong to to association 1 rep- 
resent. 

The army of public relations 
men and lobbyists who repre- 
sent the new leading players In 
the energy industry sees this 
breakdown as its goal. Ulti- 
mately, it will precede to loss 
of a vast natural resource that 
can serve us afi. 

Even in a worst case sce- 
nario, supplying 27m tons per 
year, RJB projects huge suc- 
cess providing the Industry 
remains intact 

The UK sits on more than 
lbn tons of coal reserves. 
These figures speak for them- 
selves. Will no one else? 
WEhflm F Morrell 
directorveneml 

Association of British Mining 
Equipment Companies, 

Webster BuHdtngs, 

Worthy Road, 

Rotherham S61 1LZ 


From Mr Henry MeaJdn. 

Sir, Raymond Snoddy 
reported in one article on 
November 17 (“Capital may 
seek an four regional licences”) 
that Capital Radio “under the 
points system for limiting the 
concentration of radio station 
ownership, Capital [Radio] has 
the leeway to buy a number erf 
new licences or even a national 
commercial station” and that it 
might bid for all four regional 
licences that are due to be 
advertised, in a separate article 
in the sa me e dition, he 
reported tot GWR Group had 
been prevented from making 
an acquisition by Tbe Radio 
Authority (“GWR acquisition 
plan is blocked by Radio 
Authority"). 

How can it be that Capital 
Radio, one of the biggest inde- 
pendent radio contractors in 
the wo rld a nd four times the 
size of GWR, can have this lee- 


way when GWR is restricted? 

Surely the tima Has come for 
there to be a level playing field 
in to radio industry. The sub- 
ject is presumably on national 
heritage secretary Stephen 
Dorrefi’s agenda, but is proba- 
bly not very high on the list of 
priorities: the industry is seen 
to he a success and not in need 
of em ergency service. The real- 
ity is that the industry is a 
success despite the ingisiaHnn 
a^ii that the legislation needs 
urgent revision. 

It should be to duty erf The 
Radio Authority and the 
national heritage secretary to 
take urgent steps to eliminate 
such restrictive ownership 

ayinmaligL 
Henry Meakin, 
chairman, 

GWR Group. 

PO Bax 2345. 3B2, 

Westlea, Swindon, 

Wiltshire SN5 7HF 


Computer hackers are less of a 
risk than lax security over 
passwords, says Alan Cane 

Open sesame, 
system 


S hadowy figures 
answering only to 
bizarre pseudonyms; 
secret meetings in 
lonely cellars at dead of the 
night; electronic black boxes 
dialling endless sequences of 
tele ph o ne numbers in to hope 
of making a connection. This 
Is to staff of hanker mythol- 
ogy, the heroes of the com- 
puter revolution whose main 
aim in fife is to break into 
computer systems. 

Their motivation, it seems, 
is not personal gain but to test 
their ingenuity against the 
best defences computer scien- 
tists can build round their 
systems. 

This week, hackers were in 
to limelight once more with a 
report from The Independent 
newspaper that British Tele- 
communications’ principal 
computers, used to store its 
customer records, had been 
backed into. Some of the coun- 
try's most sensitive unlisted 
telephone numbers - includ- 
ing MB, MI6, Downing Street 
and Buckingham Palace - 
were found and sent to a freel- 
ance journalist, Mr Stephen 
Fleming, over to Internet, the 
global infor m ation superhigh- 
way. 

It was hardly to first time a 
telecommunications operator 
had been compromised. In 
1988, a hacker nicknamed 
"Prophet” broke into Bell- 
South’s centralised automa- 
tion system in 

nwi.m 

a wmtiH iiiy sent a. HACK IN 
to prison after PA SSWO 

being caught j 

with incrlmi- Ifv 

natlng mate- 

But the BT 

case has been Wwl /C 

unusually pub- 
lie. Not since njHjf md 

the Duke of SMf JJfflL 

Edinburgh’s el- 
ectronic «m»H 

box was hacked b/PW 
into in the IlTi ■ 

early 1980s has A 

there been so 
much of a 
furore over the security of 
computer ante- Ayi computer 
abuse ban grown considerably 
rince-ton. ~ 

Earlier ibis year, to Audit 
Com mi s s i o n repor te d a 300 per 
cent increase in to past three 
years in all femts of c om pu te r 
abuse, including fraud, theft, 

harking anJ the nw anth wi^ 

disclosure of personal data. 

BT accepted that informa- 
tion bad been taken from its 
system, and instituted an 
immediate review of its secu- 
rity measures. But it denied 
that its com p uters bad been 
“hacked”. This position 
depends to some extent on a 
definition Of harking. 

Host people take it to mean 
using dever methods to over- 
come the system’s defences. 
But Mr Fleming, who obtained 
temporary employment at BT, 
is quoted as saying: “Tb my 
amazement I found passwords 
were openly distributed.” 

Computer security experts 
everywhere wfll have shaken 
their heads wearily at these 
words. The BT affair has con- 
firmed, yet again, their collec- 
tive view that poor password 
discipline is to biggest single 
cause of computer security 
breaches. 

People like to believe in to 
hacker mythology; they like 
to mystery and the taste of 
electronic wizardry. But it 
serves to distract attention 
from the fact that compute- 
security in most commercial 
organisations is poor or non- 
existent. 

KPMG Peat Marwick, the 
business consultancy, sur- 


veyed some 138 large compa- 
nies this year; the results 
show that almost 30 per cent 
of companies either did not 
report or investigate breaches 
of computer security. Many 
could not even say with cer- 
tainty whether their systems 
had been attacked. Some 27 
per cent were either unsure or 
stated categorically that their 
networks were not secure from 
unauthorised use. 

Mr Gerry Penfold, KPMG 
partner with responsibility for 
computer audit, said; “It 
seems that companies con- 
tinue to be oblivions of the 
commercial risks they are run- 
ning, choosing to ignore obvi- 
ous dangers." 

BT now faces an investiga- 
tion by the data protection 
registrar. Under to principles 
of to Data Protection Act, any 
mmpantpg with personal infor- 
mation about customers on 
their comput e rs have to take 
reasonable care to keep that 
information confidential. 
Breaking a principle of the act 
is not in itself a criminal 
offence; but If a company 
ignores to registrar's advice 
on future security procedures, 
it could be liable for prosecu- 
tion. 

Such security is largely a 
matter of wimiawriai compro- 
mise. Companies can have as 
much security as they are pre- 
pared to pay for. These levels 
are spelt out in the US in to 
- Department of 

wow, most pepwt 

HACK IN USING A Europe in the 
PASSWORD, 3&HNS0rt EU’s White 
-- == Book. 

A password 
gya / provides some 
JgfeSC security. The 
IS f U addition of a 
XLiyj^rS call-hack mo- 
Iffl dem, so that 
\llQ£!i *! 118618 called 

H lie II J b*ck by the 

computer, pro- 

J/lSMiAr Tldes more. 

And double, 
triple or 
greater combi- 
nations of 
‘ passwords offer 
more security stllL 
The most sensitive govern- 
ment computer systems also 
have boxes built around each 
terminal to stop people using a 
scanner to reed the radio fre- 
quencies that toy emit. 

But, essentially, system are 
at most risk from their users. 
A virtually secure system is 
possible, but to expense and 
inconvenience of guaranteeing 
password discipline is usually 
impracticable. Most organisa- 
tions settle for password com- 
binations. 

And in practice, groups ot 
people often share passwords 
to into administration easier. 
Others write them down - not 
unreasonably, in some cases. 
Professor Henry Becker of 
Zergo, a security consultancy, 
cites a bank with 40 passwords 
and identity codes. 

The problem Is realty a cul- 
tural one. There is a lack of 
awareness of the need for secu- 
rity. People who would never 
think of going oak for lunch 
leaving to cash drawer open, 
leave a computer terminal on 
and unatt en d ed without a sec- 
ond thought 

As the Audit Commission 
has said: “As information 
technology becomes a normal 
part of to employees’ work 
pattern, there is a risk of 
almost casual disregard in pro- 
tecting data. Managers and 
users must understand the 
value of data and protect it 
before it gets lost or damaged 
- deliberately or acciden- 
tally.” If the message gets 
home, hackers will have to 
win their spurs to bard way. 


Solution to share option 
tax relief for executives 


From Mr Michael London. 

Sir. It would be a pity if the 
government reacts to recent 
publicity about executive 
options by simply abolishing 
the income tax relief for 
approved “discretionary" 
schemes. This would unneces- 
sarily penalise partiripanta in 
tbe growing number of “all-em- 
ployee" share option schemes, 
which use the “discretionary" 
scheme legislation because of 
the inflexibility of to require- 
ments for savings-related 
(SAYE) share options, it would 
also farther encourage employ- 
ees to grft their shares immedi- 
ately after exercising the 
options, instead of holding on 


to them for a longer period. 

If to government feels that 
tax relief for “discretionary” 
schemes needs to be restricted, 
may I suggest that it is contin- 
ued for all schemes where 
options are granted to employ- 
ees generally. Limited tax 
relief should also be available 
for executive options, but only 
in respect of those shares 
which are still held for, say, 
two years after the option exer- 
cise date. 

Michael Landon, 
senior consultant. 

The Wyatt Company, 

21 TothiU Street, 


London SWlH 9LL 


Indicate money spent per pupil 


From Mr Tim 
Beechey-Nevmum. 

Sir, Your inclusion of an 
Indicator of social deprivation 
in the league table of school 
results ("Schools’ league 
tables”, November 22) is one 
step to providing more Infor- 
mation about the achievement 
of the schools involved. How- 


ever, if to additional educa- 
tional needs index, from which 
your indicator was taken, is 
also an indicate of the amount 
oS taxpayers* money spent per 
pupil, ton it is misleading not 
to include this figure as well. 
Urn Beechey-Newman, 

20 Langford Green, 

I/mdan SE5 SBX 




I'a nnu.rncBflUna2Bf nnoul IB MM S3* =1 r* V tt> W (9 ifi 31 Z S Sr 5 X * V C £ O O * P VI IP C « WB> ■* 2 2 c S S Q O T 3 O V *■ 01 I Z MB t ET OT tST a* O' Q . t H" & SJ tt K* UBQjltl *M S' SS O to XI 60 


FINANCIAL TIMES WEEKEND NOVEMBER 2tfNO 


271994 


COMPANY NEWS: UK 


Two water companies report different non-regulated experiences 

North West link s with Bechtel 


By Peggy Ho«nger 

Shares in North West Water 
rose 2 per cent to 529p yester- 
day as the biggest of the 10 UK 
water and sewerage companies 
announced plans to link up 
with US-based Bechtel Corpo- 
ration, which is one of the 
world's top engineering and 
construction companies. 

The two companies plan to 
establish a wide-ranging busi- 
ness partnership to pursue 
international opportunities. 

Bechtel, which led the resto- 
ration of Kuwait after the Gulf 
War, will also take on the man- 
agement of North West's 
EL3bn capital Investment pro- 
gramme. 

Mr Brian Staples, North 
West’s chief executive, said the 
alliance would bring substan- 
tial benefits to both partners. 

North West, which has been 
one of the most active UK 
water and sewerage companies 
abroad, would benefit from 
Bechtel’s procurement prac- 
tices. The UK company now 
expected to achieve savings on 
its investment programme 
above the 10 per cent indicated 
just two weeks ago. 

North West would also be 



Sir Desmond Pitcher, left, chairman of NW Water, and Riley 
Bechtel, president of Bechtel: pursuing international deals 


able to step up Its international 
expansion, while sharing the 
costs of marketing and devel- 
opment Currently it is spend- 
ing about £10m a year. 

For Bechtel, the link brings 
in-depth expertise in the rapid- 
ly-growing international water 
and sewerage market Bechtel 
is buying North West's engi- 
neering division, which 
designs and builds treatment 
plants, for £15m. 

The companies will form a 
joint venture in the US, where 


interest in the privatisation of 
water services has grown dra- 
matically over the last two 
years. It is estimated that US 
municipalities need investment 
of about $127bn (£77bn) to meet 
current Clean Water Act 
requirements. 

North West’s announcement 
almost overshadowed its 
interim results, which showed 
a marginal decline in pre-tax 
profits from £138-2m to £ 136.8m 
for the six months to Septem- 
ber 30. Sales were 7 per cent 


ahead at £488.4 m (£455.3). 

Profits were depressed by a 
£13.5m goodwill write-off on 
disposals. 

The dividend was increased 
by 8.0 per cent to 8.35p <7.67p) 
from earnings down 13 per 
cent to 34.3p (39.3p). 

• COMMENT 

North West appears to have 
staged a coup. None of the 
other water and sewerage com- 
panies forging links abroad 
have found such an interna- 
tionally influential partner. 
Bechtel is renowned for its 
tough procurement practices 
and the link-up will do much 
to ease anxieties over thin 
margins on international con- 
tracts. which have plagued 
North West’s strategy for some 
time. The alliance is also 
bound to reduce the risk sub- 
stantially. On the downside, 
privatisation in the US is 
slower in coming than expec- 
ted. and international con- 
tracts still carry a certain 
degree of risk. Forecasts are 
for pre-tax profits of £290m 
before exceptional and a pro- 
spective yield of 6 per cent Its 
prospects are more encourag- 
ing than for many of Its peers. 


Welsh falls 36% on Acer losses 


By Peggy Hofflnger 

The controversy over the 
diversification policies of utili- 
ties resurfaced yesterday as 
Welsh Water announced disap- 
pointing interim results due to 
losses and charges in its larg- 
est non-regulated business. 

Pre-tax profits fell 36 per 
cent to £49.4m (£77.3m) for the 
six months to September 30, 
after exceptional charges of 
£2&Sm. Turnover was 0.73 per 
cent lower at £259 Jm. Exclu- 
ding discontinued businesses, 
sales rose by 1.8 per cent. 

The exceptional charges 
included £11. 5m to cover 
rationalising the Acer motor- 
way design business. The bal- 
ance arose from a previously 
announced rationalisation in 


the core utility business. 

Mr Iain Evans, chairman, 
said a si gnifi cant number of 
UK motorway orders bad been 
cancelled by the Department of 
Transport, leaving Acer with 
losses of £2. 8m. 

Management had decided to 
cut 13 per cent of the 3,000- 
strong workforce, with most of 
the jobs going from the UK 
division. 

Welsh paid £50m for Acer, 
including £27m in debt, 21 
months ago. It wrote off £40m 
against goodwill soon after the 
purchase. 

The company yesterday 
faced renewed criticism over 
its diversification record, 

- which includes unhappy forays 
into electricity and hotels 
under previous management. 


“We are hearing the same 
story time and time again,” 
said one analyst. 

Mr Evans denied that these 
were bad results. On the posi- 
tive side, Welsh had cut under- 
lying operating costs by about 
1.5 per cent. Further benefit 
was expected from rationalis- 
ing the utility, where more 
than 400 jobs would be cut. 

Welsh had also achieved 
savings of roughly £4m on its 
capital spending programme. 

Mr Evans said the non-regu- 
lated businesses, with the 
exception of Acer, had 
improved “dramatically”. Prof- 
its excluding Acer had risen 
from £300,000 to £3.4m. 

The dividend was increased 
by 10 per cent to 9.3p (8.45p) 
from earnings down 37 per 


cent at 31.1p (492p) or 49.4p 
(49 ^p) before exceptional . 

• COMMENT 

It appears that Welsh has writ- 
ten off more than it paid for its 
Acer subsidiary, and the divi- 
sion is still making losses. Not 
surprisingly the shares under- 
performed yesterday, falling 4 
per cent against the sector's 2 
per cent decline. Forecasts 
were pulled back from about 
£l63m to £l55m, before the 
£28.5m charge. On the plus 
side, Welsh Water has one of 
the strongest balance sheets 
and highest dividend covers 
among its peers. At some 
stage, this should feed through 
to shareholders. For the 
moment, however, the shares 
look about right. 


McLeod Russel chairman 
dies suddenly aged 50 


Cornwell Parker chief 
makes boardroom changes 


By Peter Pearee 

Mr Nigel Openshaw, chairman 
of McLeod Russel Holdings, 
died suddenly on Thursday 
aged 50. 

An accountant he joined the 
board in September 198L By 
1987 he was group managing 
director and by 1988 chairman. 
He engineered McLeod’s meta- 
morphosis from a plantations 
group bo its current position as 
a holding company with inter- 
ests in surface coatings, air fil- 
tration, environmental engi- 
neering and property 
investment 

This was initially achieved 
in 1987 when the group sold 80 
per cent of its Indian tea inter- 
ests and when Kennedy Smale, 
a glove manufacturer and 
machinery distributor, took 
over McLeod in an agreed 


McKechnie 
chief gets 
62% rise 

Mr Michael Ost, chief exec- 
utive of McKechnie, the plas- 
tics and metals components 
group, received a pay rise of 62 
per cent for the year to July 31, 
taking his earnings to £275,748. 

Mr Ost’s basic salary rose 
from £146,000 to £185,067, while 
his performance-related bonus 
climbed to £65,519 (£13,431). 
Among other benefits, he also 
received pension contributions 
of £13016. 

Mr Ost’s pay is decided by a 
committee of non-executive 
directors. The bonus is set by a 
formula covering the percent- 
age increase In earnings per 
share over four years and the 
achievement of the cashflow 
budget for that year. McKech- 
nie’s earnings in 1993-94 were 
27 Jp (22p in 1990-91). In 199394 

its net cash inflow before fin- 
ancing was £2. 05m. 

Vis tec shares fall 

Shares in Vistec fell 6p to 13%p 
yesterday after the USM- 


£51 .5 m merger. 

At a board meeting yester- 
day Mr James Leek was 
appointed chairman. He has 
been a non-executive director 
since May 1992. Mr Paul Hum- 
phreys, finance director, said 
Mr Iffek would be spending an 
increasing amount of time 
with McLeod, and that the 
move had been made so 
quickly to ensure continuity 
for the group. 

Mr Leek is already chairman 
of Amberiey Group, the USM- 
traded building preservation 
company, and a director of 
Caparo Industries, the steel 
products and engineering 
group. 

On Tuesday, McLeod 
announced a 23 per cent rise in 
pre-tax profits to £6. 36m 
(£5.16m) in the year to Septem- 
ber 30. 


By Peter Pearae 

Mr Martin Jourdan, chairman 
of Cornwell Parker, has fol- 
lowed his downbeat trading 
statement at the end of Octo- 
ber with boardroom chan ges at 
the furniture and fabrics 
group. “When trading is poor, 
people expect something to be 
done,” he said. 

As well as remaining group 
chairman Mr Jourdan is taking 
over as chief executive of the 
fabrics division and managing 
director of the furniture side. 

These moves are displacing 
Mr Tony Thomas in fabrics 
and Mr Jourdan’s brother Tom 
in furniture. While Mr Tom 
Jourdan will remain responsi- 
ble for manufacturing 
operations, Mr Thomas will 
leave at the end of January. Mr 
Martin Jourdan said Mr 


NEWS DIGEST 


quoted computer systems, soft- 
ware and services company 
reported lower interim pre-tax 
profits and warned that the 
full-year result would be "sub- 
stantially less Hinn last year”. 

Despite a 44 per cent rise in 
turnover to £25.4m (£17. 6m) 
pre-tax profits for the half year 
to October 31 fell from £L13m 
to £745,000. 

Mr Arthur Morton, chair- 
man, said the year had started 
well but that during the second 
quarter trading profits had 
declined. He cited three rea- 
sons: the ending at Sphinx 
Level V of the supply agree- 
ment by Informix; the perfor- 
mance of recently acquired ISO 
Communications and Data 
Logic Communication Ser- 
vices; and margin reductions 
in desktop computer markets 
because of competition. 

Earning s per share slipped to 
0.41p (0.62p) but the interim 
dividend is held at 0.125p. 

James Latham 
Nearly doubled pre-tax profits 

of £1.14m against ££@8,000 were 
announced by James Latham, 
timber importer and building 
materials merchant, for the six 
months to September 30. 

Turnover was up 15 per cent 


| DIVIDENDS ANNOUNCED | 


Carres - 

Total 

Total 

Current Date of 

ponrfing 

for 

last 

payment payment 

cflvfdend 

year 

year 


Ablruat Emer E=co__fin 

Bristol Post int 

Cleveland Trust 

Drayton Blue Int 

Ideal Hardware hit 

Latham (James) Int 

North West Water int 

R othman s Int 

Stoddard Setters Int 

Syltone Jnt 

Vistec § .hit 

Welsh Water int 


Dividends shown 
Increased capital. 


per shoe net except where otherwise stated- jOn 
stock. O Gross. ★Including special dvfcfend of 0.4p. 


to £40. 4m, against £35. lm 
which included £479,000 from 
discontinued operations. Mr 
Christopher Latham, the chair- 
man, said it was the first Hma 
since the onset of the recession 
that sales from all the trading 
activities had been over target 

A 2J25p (l.5p) dividend is 
being paid from earnings of 
16-6P (7-91p) per share. 

Syltone 14% ahead 

Syltone, the designer and man- 
ufacturer of transportation 
industry accessories, reported 
a 14 per cent increase in pre- 
tax profits from £1.23m to 
£1.41m for the six months to 
September 30. 

Turnover was up 11 per cent 
at £21m (£189m). Earnings per 
share were 5.01p (4A4p), or 
4.89p (4.15P) fully diluted. The 
interim dividend rises to L7ip 
(L625p). 

Mr John Clegg, chairman, 
said the group's only disap- 
pointing performance came 
from Rotoeold, its air -condi- 
tioning subsidiary, where 
action was being taken to 
“finally stem losses”. 

Cleveland Trust 

Cleveland Trust, the industrial 
property investment concern, 
increased pre-tax profits from 
£60,000 to £382,000 for the six 
months to September 30- 

Turnover grew to £911,000 
(£393,000) and earnings per 
share came to 2L5p (l.7p). The 
interim dividend is 2.4p (nil). 

Fleming High Inc 

Net asset value per share for 
Fleming High Income Invest- 
ment Trust was 99.85p at Octo- 
ber 31, compared with lOlp at 
the April 80 year-end and 
l(&2p a year ago. Net revenue 
for the six months fell from 
£860,000 to £743,000. 


Thomas was on a rolling two- 
year contract and no payment 
above any contracted entitle- 
ment had been discussed. 

The senior board was reor- 
ganised three and a half years 
ago to cope with expansion, 
but “now we need to manage 
the business we've got, and 
we’ve got international man- 
agement talent we don't need”, 
Mr Jourdan said. 

There was also a need to “de- 
layer” the organisation 
between the top of the business 
and the shop floor. At subsid- 
iary board level, one director 
was taking early retirement 
and three had left already. 

As these events had hap- 
pened early in the financial 
year, costs would probably can- 
cel out savings, and benefits 
would show in the following 12 
months, Mr Jourdan said. 


Earnings per share came out 
at Z29p (2.67P). The board has 
declared an unchanged second 
interim dividend of Lip. 

Dart rises 15% 

Interim pro tax profits at Dart 
Group, the distribution and 
aviation services company, 
advanced 15 per cent from 
£lJ25m to £1.44hl 
Sates for the half year to Sep- 
tember 30 edged ahead from 
£27m to £27.5m. Last year’s fig- 
ure included turnover from 
Dart’s holding in Benair Hong 
Kong, sold in December. 

The rise in earnings per 
share from 58 to 6.5p lifts the 
dividend to lJ5p (18p). 

Coal side hits GWR 

Great Western Resources, the 
US-based energy company .an- 
nounced Increased pre-tax 
losses from $888m to $128m 
(£78m) for the year to Septem- 
ber 30. 

A market valuation of the 
coal division, where operating 
costs were higher than expec- 
ted, was being undertaken. A 
sale could result in "a substan- 
tial book loss”, the company 
said. 

Revenues were S138m 
($l23m). Net losses of Sli.im 
(J7.im) gave losses per share of 
10 cents (8 cents). 

Archer raising £6m 

Archer, the Lloyd's agency, 
plans to raise £6m in a private 
placing to Invest in the Lloyd’s 
of London insurance market. 

Abbey National : 

Abbey National’s recom- 
mended £56m offer for House- | 
hold Mortgage Corpn, the UK's : 
hugest centralised mortgage I 
lender, has been declared j 
unconditional in all respects. I 


BSkyB to 
raise about 
£ 810 m in 
global offer 

By David Biackwefl 

British Sky Broadcasting, the 
satellite television venture, 
launched its UK retail offer 
yesterday without setting a 
firm price for the shares. 

It is offering UK investors 
36.4m shares out of a global 
offer total of 343m shares. The 
offer closes on December 6, 
and the price will be set - in a 
range between 233p and 268p 
- on the morning of December 
8. when dealings begin. 

The lower price would value 
the group at £4bn, while the 
upper price would give a valu- 
ation of £4. 6b a. A price in the 
middle of the range would 
raise about £810m, which 
would be used with a new 
bank facility to pay off debts. 

Investors can set a limit on 
how much they are prepared 
to pay per share, but applica- 
tions will be based on the 
amount of money to be 
invested. The minimu m invest- 
ment is £500. 

The prospectus shows the 
group had 3.6m subscribers at 
end-September, up from 3.45m 
last June. Group revenues in 
the year to June 30 were 
£550m, mainly from subscrip- 
tions. Operating profits were 
£170m, pre-tax profits £9 3m 
and earnings per share 6£p. 

The group promises “to 
maintain a dividend policy 
that reflects the presently high 
cash generative nature” of the 
business. For the year to June 
the directors would have rec- 
ommended a net dividend of 
38p per share. 

The main shareholders are 
Mr Rupert Murdoch's News 
Corporation; Pearson, the 
media group that owns the 
Financial Times; Granada, the 
television and leisure group; 
and Chargenrs, the French 
industrial company. 

The group win be run by a 
board of 19, with Mr Frank 
Barlow remaining as chairman 
and Mr Sam Chisholm, who 
has played an important role 
in turning BSkyB round, as 
chief executive and managing 
director. Among 11 new direc- 
tors will be Mr Gerry Robin- 
son, Granada chief executive, 
and Mr Jerome Seydoux. Char- 
genrs chairman- 
The group 10 days ago sub- 
mitted an affidavit to the High 
i Court which estimated that 
total losses to the company in 
the first five months iff Oris 
year through pirate card 
devices were £2 .25 m. 

The prospectus says there 
has been some piracy, but “the 
directors believe that there 
has been no material loss of 
revenue over the past fiscal 
year as a consequence.” The 
group said it had been advised 
that a loss should only be con- 
sidered material if it was 5 per 
cent instead of the 0.5 per cent 
loss over the period. 

Stoddard Sekers 
more than trebled 

Interim pre-tax profits at 
Stoddard Sekers International, 
the carpet and furnishing fab- 
ric manufacturer, more than 
tripled from £167,000 to 
£565,000. 

Operating profits increased 
from £583.000 to £963,000 in 
the six months to September 
30, on turnover 6 per cent 
ahead at £29 .2m (£27.4m). 

Mr Hugh Laughland, chair- 
man, said the group's opportu- 
nities in the contract and 
export carpet markets had 
shown a “gratifying improve- 
ment”. 

Earnings per share emerged 
at 0.7p (O.lp) and the interim 
dividend is held at 0.75p. 


Rothmans am 
forecasts with 


rise 


By Roderick Oram, 

Consumer Industries Bettor 

A recovery In French, cigarette 
prices and test growth in Asia 
helped Rothmans International 
beat City forecasts with an 18 
per cent rise in pre-tax profits 
from £233.4m to £2758m for the 
six months to September 30. 

Its European market share 
was down marginally, continu- 
ing a long-term decline because 
of dependence on local brands 
awri Vir ginia blend cigarettes 
rather than International 
brands anii American Wanda. 

Lord SwaythHng, chair man, 
grid market share was begin- 
ning to stabilise thanfea tu part 
to file success of Golden Amer- 
ica, an Amcivan blend ciga- 
rette launched in several coun- 
tries over the past two years. 

European operating profits 
rose by 44 per cent to £7Qm 
(£48.7m) on sales up 6 per cent 
at £538 Am. After a price war in 
France last year, prices and 

riwnanrt Improved in file lates t 

period. UK sales rose from the 


previ ou s year which had been, 
distorted by two Budgets; 

The first costs savings frimr 
a European rafionaEsafioh pro-. ' 
gramme announced, in. June- 
were only just beginning to 
flow through by the 'dose ' 
the period, analysts estimated. 

Profits from the America* 
predominantly Canada, fell 
from £50. lm to £49.8m 
although they had. grown in. 
local currency terms. 

/ jgiap profits rose! to' £59.6m 
($46 im) while Pacific profits, 
foil to £2&3m (£29-3m) because 
of a price war -in Australian 
and New Zealand and 
increased marketing’ costs. 

Rothmans' . worldwide cigar 
rette -volume® rose slightly. . 
The Tmrtn gains were in Japan 
and the UK. Sales revenue rose 
by <L3 per cent to £L27&n. 

The interim dividend of 7.5p 
per unit will reduce net cash 
generated to £86Jm (£184£m). 
Last firm* it paid ' no dividend 
because of payments assod-. 
ated with the capital restruct- 
uring of Rothmans and Dun- 


HTi, its aster company. Bam- 
fogs per unit were ISLTp (THjpX. . 

Lord Swaythling reiterated 
the hoard’s commitmeM to 
invest only cash generated in 
tobacco and in dne course to 
give any surplus to sharaM d- . 

The TargesTte the- Ruperfr 
■fondly with aW-per cent state, ' 

• The units rose l7p to 4®p.' " 


Rothmans’ caution on buying 
brands in emerging market s .; 
such as eastern Europe have 
ni prin itlook’ conservative com- 
pared with ' Philip Morris and 
BAT. Industries. Its wffimgness 
to tov^ preferably ifr green- 
field projects and Asia, is not 
In doubt hot will take years to. , 
pay off Meanwhile, 'the bottom 
itng will benefit from fho fruits 
of European cost catting. FuB- 
year profits of about £555m are. 


a prospective p/e of 11. This 
rates the shares slightly above 
BAT and Morris hut there Is 
the attraction long term of a 
big pay-out to shareholders . . . 


Continuing problems at 
DRS will hit second half 


By Simon Dairies 

DRS Data warned yesterday 
that continuing trading prob- 
lems would result in disap- 
pointing second half profits. 
The shares were unchanged at 
30p, compared with the llOp 
offer price in May. 

The flotation of the scanning 
equipment manufacturer has 
been followed by a catalogue of 
disasters, including a change 
in ownership of its main dis- 
tributor and a collapse in 
demand from schools, its larg- 
est market 

The sta tement yesterday said 
there was no signs of a recov- 
ery on educational sales. 
Schools accounted for about 70 
per cent of sales last year, but 
shortly after its share offer 
iiaiMiri dried up. 

The group said some schools 


'too 


C* few*' ; T* ; '! 




* /• * • #A ^ •*, 5 ,^* // fctj 


saaoK n-a«pwis, ., , •; 

were reconsidering the need, 
for DBS's main product the 
Optical Mark Reader, following 
recent relaxation in National 
Curriculum requirements. 
There has also been a trend 


Malcolm Barr steps 
down to end feud 


By Richard Wofffe 

Mr Malcolm Barr agreed to 
step down as chairman, of Barr 
& Wallace Arnold Trust yester- 
day in a boardroom shake-up, 
which spells an end to the fam- 
ily feud at the motor and lei- 
sure group. 

Mr Barr, who is also the out- 
going chairman of the Leeds 
Permanent Building Society, 
gave way to pressure from 
rebel shareholders led by his 
nephews, Nicholas and Robert 
Barr. The brothers, who speak 
for almost 30 per cent of ordi- 
nary voting shares, are joining 
the board along with their fel- 
low rebel shareholder, Mr 
Kerry Firth. 

The boardroom deal came 
after an EGM had dissolved 
into chaos as the warring par- 
ties held a series of frantic 
talks in front of shareholders. 
The EGM foiled to start and 
was eventually adjourned until 
Monday while financial advis- 
ers attempted to negotiate a 
deal to end the food. 

The board had wanted to 
enfranchise the non-voting A 
shares, which represent 80 per 
cent of the equity and are 
owned almost entirely by insti- 
tutions. However, the rebels 
won support from shareholders 


representing more than 50 per 
omit of voting ordinary shares. 

Wnfranchiaement now seems 
likely to be voted through at 
the reconvened EGM next 
week. A second meeting had 
been requisitioned by the reb- 
els to remove Mr John Parker, 
chief executive, and Mr Brian 
Small, finance director. How- 
ever, both Mr Parker and Mr 
Small will stay osi the board as 
part of the latest deal. 

The agreement follows six 
weeks of acrimonious dispute 
between the Barr generations 
over the future of the family 
business. The brothers wanted 
to demerge the two divifflans to 
unlock shareholder value. The 
board countered with warnings 
from motor manufacturers that 
the new company could lose its 
lucrative car dealership fran- 
chises. 

Before details of the deal 
emerged, Mr Nicholas Barr 
denied that his uncle's depar- 
ture would resolve the dispute. 

“That would make it sound 
extremely personal, which it is 
not.” he said. "Much has been 
said about family feuding and 
clearly there are differences of 
opinion. But this is not a per- 
sonal issue, it is a commercial 
one.” Malcolm Barr will 
become life president 


for schools to build up cash 
reserves, with a corresponding 
decline in expemftirire. 

Nottingham Group, the edu- 
cational products supplier, also 
revealed declining sales to 
school in the first half of 1994, 
shortly after its March flota- 
tion. 

DRS said the collapse in 
sales was unforeseeable at the 
time of its share offer. Mr Mal- 
colm Brighton, founder and 

managing dfTectOT, marie about 

f?fim from the offer. The com- 
pany's shares fell 58 per cent 
last September, after its 
Interim results revealed dechn- 
ing profits and collapsing sales. 

In a year littered wffh the 
corpses of disastrous flotations, 
only Aerostmctures Hamble 
has performed worse, dosing 
yesterday at 25p,' compared 
with its offer price of 120p. 

Bristol 
Post ahead 
at £4.78m 

By Geoff Dyer 

The sale of a shopping centre 
helped lift interim pre-tax 
profits at the Bristol Evening 
Post by 54 per cent, from 
£3.1m to £4.78m. 

Bxdnding the £l-24m profit 
from the sale of the New 
Broadmead site in Bristol, the- 
pre-tax figure rose 14 per cent 
to £&54m in fiie 26 weeks to 
September 30. 

Turnover rose only 1 per 
cent to £80.4m (£30. lm), in 
part because of a reduction in 
the number of Kiosk retail 
stores from 78 to 62. 

Retail activities recorded an 
increase in operating profit of 
£398,000 (£215,000), up 85 per 
cent 

Operating profits from news- 
paper publishing and p rinting 
rose 26 per cent from £UJlm 
to £ 1.66m, on turnover of 
£X7.3m (£16. lm). Mr Keith 
Sadler, finance director, said 
advertising revenues for the 
half were np from £l0m to 
£12m, after a good first quar- 
ter but poor second quarter. 

Earnings per share 
increased from 8.47p to L2J!8p, 
with the undertytng figure up 
9 per cent at 9J3p. The interim 
dividend is 4JSp (4JS5p). 


Asprey loses some of its sparkle 


By Peter Pearee 

Despite the unseasonably 
warm weather, a chill wind 
has been blowing through the 
elegant showrooms of Asprey. 
the exclusive jewellery retailer 
whose various businesses are 
scattered along the streets of 
London’s West End. 

Indeed, Mr Naim Attallah, 
chief executive of the group he 
refers to as "the most luxuri- 
ous gift shop in the world", 
suggested last week that the 
super-rich had not only been 
absent from the group's Lon- 
don stores, but that It's the 
same in the United States, 
Switzerland and even on Ave- 
nue Montaigne in Paris”. 

However, as Asprey revealed 
a fall in pre-tax profits to 
£3.01m (£l2.2m) for the six 
months to September 30, he 
suggested that there had been 
a small improvement in the 
weeks since the profits warn- 
ing of September 9. 

He will be hoping that this 
Improvement continues or 
watchers of the group will 
question the wisdom of his 
expansionist moves of the past 
few years. To a group contain- 
ing the core Asprey business 
with three outlets, he added 



Naim Attallah; retail stock ranges from E23JS0 to more thMJsXT 


Garrard and Mappin & Webb 
in 1990, Watches of Switzerland 
in 1992 and Les Ambassadeurs, 
a watch and jewellery retail 
chain, in 1993. The 1993 launch 
of Zeus, “an experiment" 
aimed at younger shoppers, 
took the group yet further 
from its known territory. 

Garrard Is the kind of shop 
where most items have no 
price ticket presumably on the 
assumption that if you need to 
ask, you can’t afford it Its 
most expensive item retails at 
£2 .8m, while M&Ws costliest 


bauble is a snip at £ 95 , 000 . 

Asprey’s stock ranges from a 
Burma ruby and diamo nd suite 
at more than £4m to a heron 
dish at £2350 which, strangely 
is the same price as a Swatch 
watch, the cheapest item at 
Watches of Switzerland. 

The acquisition drive has 
broadened the customer base 
away from the rarefied world 

of Arab princes, heads of states 

and governments cm which the 
group used to depend. This 
was Mr Attallah’s intention. 
He maintains that otherwise 


the group would be at the 
fi nan cial mercy of the whims 
of “certain overseas custom- 
ers”. In this, he hag the -broad 

agreement of Mr Arnaud Bam- 
berger, managing director -of 
Cartier in the UK, who says: 
“We are not having these prob- 
lems at the moment, but we 
m i ght tomorrow.” 

In Asprey’s interim results, 
the sharpest turnover fan -to 
£29.6m (£39-3m) — was- at the 
core Asprey business. 'Gar- 
rard’s turnover was flat at 
£U.7m and Mappin & Webb's 
sapped by Elm to gi fi.2m prof- 
its at Watches of Switzerland 
were lower as a result of file 
growth of overheads as the 
®J mpan y expanded from 28 to 
33 ou tlets, but its turnover 
grew to Ei6Am (£13 7m). 

Asprey’s expanded customer 

case contains many Who were 
relatively rich in the 19806 but 
S!! Jtof* ^ktened their 
wits. And Mr Attallah famed 
at the government’s - lack of 
understanding of psychology, 
railing at the had timing tftoe 
upcoming Budget “We have 
had a quiet November, because 
deterred from 
«™nas buying when they 
ora t know what their portion 
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FINANC IAL TIMES WEEKEND NOVEMBER 26/NOVEMBER 27 1994 * 

INTERNATIONAL COMPANIES AND FINANCE 


VW plan to cut investment 
prompts slip in share price 


Bock sells stake in German hotels group 


By Christopher Parkas 
fri Frankfurt 

The Volkswagen share price 
suffered yesterday as the com- 
pany announced plans to slash 
capital investment and reports 
circulated of internal profit 
forecasts Which fell Ear short of 
analysts' expectations. 

After trading up during the 
day, the automotive group's 
shares shed more than DM6 
towards the close, ending 
DM3,70 down at DM451.80. 

The company last night 
refused to confirm or comment 
on the existence of a document 
reportedly presented at a meet- 
ing of the supervisory board 
yesterday which showed the 
management expected pre-tax 
profits in 1995 of DM890m 
($57l.l7m). 

The document was also 
reported to say the outcome 
could be up to DM200m higher 
or lower, and added that sales 
would rise only modestly next 
year and it would be difficult 
to increase prices. 

According to the Reuters 
news agency which said it had 
copies of the paper, the man- 
agement forecasts were far 
more gloomy than those of 
stock market expectations. 


By Nikki Taft in Sydney 

Australis Media, Australia’s 
wouid-be pay TV operator, said 
yesterday that it was holding 
talks with Mr Rupert Mur- 
doch’s News Corporation, but 
declined to be drawn on the 
nature of these discussions. 

Australis holds one of the 
two commercially-available 
satellite licences for the Aus- 
tralian market and has pledged 
to deliver the nation's first 
pay-TV service early next year. 
Bat it has come under increas- 
ing pressure horn the big exist- 
ing media operators - notably 
Mr Kerry Packer and Mr 
Rupert Murdoch - who have 


By John Riddng hi Paris 

Credit Lyonnais, the French 
state-owned bank, has been 
appointed to study the privati- 
sation of Seita, the state 
tobacco monopoly which man- 
ufactures Gauloises and 
Gitanes cigarettes. 

The economy ministry said 
that no decree had yet been 
issued for Seita’s privatisation 
and that Credit Lyonnais 
would study the mechan i sms 
and technicalities of a possible 
privatisation. Seita is one of 21 
public sector companies slated 


which were mostly based 
on earnings well above 
DMibn. 

The agency quoted one ana- 
lyst describing such a result as 
“depressing”, although others 
found it hard to believe the 
figures were correct, suggest- 
ing the management could 
have massaged the data to 
present as poor a picture as 
possible to the supervisory 
board. 

Under German accounting 
rules, companies commonly 
add to or draw down 
hidden reserves at any time 
without publicising such 
moves. 

While investors are con- 
vinced that VW Is set to 
rebound strongly from its net 
DM1.94bn losses last year, 
management may want to play 
down the extent of the recov- 
ery while it is still trying to 
cuts costs and increase produc- 
tivity. 

Mr Ferdinand Pigch, group 
chairman, recently angered 
his competitors with a down- 
beat assessment of the car 
market's prospects which 
hit all automotive groups* 
shares. 

VW may also want to paint 
as black a picture as possible 


formed consortia with local 
telecommunications groups 
and are holding out the prom- 
ise of rival cable-based sub- 
scription services in tee not- 
toodistant future. 

There has been speculation 
that this pressure will lead 
Australis to team up eventu- 
ally with the joint venture set 
up by News mid Telecom, tee 
large government-owned tele- 
communications group, cur- 
rently installing a national 
cable infrastructure. The three 
companies could then pool 
their progr amming , subscriber 
management and delivery 
resources. News, through its 
ownership of Fox film studios, 


for sale, or already sold, by the 
centre-right government of Mr 
Edouard Bahadur. 

Industry observers played 
down the prospect rtf a rapid 
sale. The French government 
has already netted more than 
FFr60bn (J 11.2 bn.) this year 
from its privatisation pro- 
gramme, compared with a tar- 
get of FFriSbn. Mr Nicolas Sar- 
kozy, the budget minister, 
indicated last week teat no fur- 
ther privatisations would take 
place in 1994. 

The government is, however, 
in the midst of the privatisa- 


to enhance its chances of suc- 
cess with Us current lobbying 
exercise in Bonn for govern- 
ment subsidies. 

The company wants funds 
for a “scrapping premium" 
scheme similar to those used 
earlier to liven up the Spanish 
and French car markets, Ordi- 
nary car owners were paid sub- 
stantial sums to trade in cars 
over 10 years old for new mod- 
els. 

VW says more than 20 per 
cent of the German car market 
would stand to gain most, 
while other groups such as 
Mercedes and BMW are 
believed to be strongly against 
subsidies which would appeal 
mainly to owners of lower- 
priced cars. 

The non-executive supervi- 
sory board, which is dominated 
by worker representatives and 
Social Democrat politicians, 
yesterday approved a sharp cut 
in medium-term investment 
plans, which reduces the five- 
year budget for 1995 to 1999 to 
DM58.5bn compared with 
DM68bn for the current budget 
to the end of 1998. 

The total will be divided vir- 
tually equally between the fac- 
tories and the group's financial 
services business. 


could contribute programming, 
and also subscriber manage- 
ment 

Confirmation of the talks 
with News was given by Mr 
Rodney Price, Australis' chair- 
man. at tee company’s annual 
meeting in Sydney yesterday. 

However, he also disclosed 
that the company had just 
secured a partnership agree- 
ment with Sony Pictures, 
MCA/Universal, and Para- 
mount for the provision of gen- 
eral entertainment program- 
ming. 

Mr Price repeated the 
group’s determination to 
launch a pay-TV service in the 
new year. 


tion process for Groupe Bull, 
the computer manufacturer. 
Last week, it invited offers 
from potential investors seek- 
ing to take stakes in the com- 
pany. The government is also 
eager to launch the privatisa- 
tion of Assurances G6n£rales 
de France, but is awaiting 
improved stock market condi- 
tions. 

Seita, which makes matches 
as well as cigarettes, reported a 
first-half net profit of FFrt54ra 
and predicted a rise In toll-year 
profits, compared with the 
FFr585m achieved in 1993. 


By Michael Skapinker 
In London and Michael 
Undemann in Bonn 

Mr Dieter Bock, chief executive 
of Lonrho. yesterday began to 
fulfil his promise to dispose of 
his outside Interests when he 
announced the sale of a con- 
trolling stake in Kempinski, 
the German hotel group, to a 
leading Thai hotel company. 

Advanta Management, Mr 
Bock’s German property com- 
pany, said It was selling its 
stake of just over 50 per cent in 
Kempinski to Dusit Sindhorn, 
a Thai joint venture between 
Dusit Thanl, the hotel com- 
pany, and Siam Sindhorn, a 
Thai property investor. 

The purchase price was not 


Skanska profit 
ahead 83% at 
nine months 

I By Christopher Brown-Humma 
in Stockholm 

Skanska, Scandinavia's largest 
construction and property 
group, increased pre-tax prof- 
its by 83 per cent to SKr2.72bu 
($365m) in the first nine 
months. 

Expanded international 
operations, reduced interest 
costs and higher dividend 
income offset the slump in the 
Swedish building market and 
lower rental revenues. 

The figures Included a 
SKr879m dividend from the 
winding up of the investment 
group, Protorp. 

There was a 4 per cent drop 
In nine-month operating 
income to SKrl.87bn from 
SKrl35bn, reflecting a worse 
performance from the Swedish 
construction unit and lower 
rental revenues after property 
divestments late last year. 

But the downturn was offset 
by SKr857m in financial 
income. In the same 1993 
period, the gronp incurred 
SKr466m in expenses. 

The Swedish construction 
side saw operating profits fall 
to SKr363m from SKr412m as 
revenues fell 7 per cent to 
SKrlO.Sbn. Low demand and 
depressed prices characterised 
the domestic market, now in 
its fourth year of recession. 

Residential construction is 
being held back by high Inter- 
est rates with bousing starts 
falling to 5,800 from 7,400. The 
company says the market 
should have touched bottom, 
with higher road and civil 
engineering activity helping to 
offset low housing construc- 
tion business in the next year. 

International operations 
accounted for 46 per cent of 
total order bookings of 
SKr27.4bn against 27 per cent 
of SKrl7.6bn in 1993 . Interna- 
tional construction revenues 
jumped to SKr6.9bn from 
SKr4.4bn and operating 
income climbed to SKr47m 
from SKrl6m. 

Skanska says Its full-year 
profit, excluding the dtvtdend 
from Protorp* will be consider- 
ably better tban last year’s 
SKrLlbn. 


disclosed, but Advanta is 
believed to have sold its stake 
at a premium to the price of 
Kempinski shares on the 
Frankfurt stock exchange. 
Kempinski shares rose DM10 
yesterday to dose at DM850. 
The deal will be completed cm 
December 5. 

Mr Bock's pledge to sell bis 
outside interests came this 
month when he won his battle 
to persuade Mr Tiny Rowland, 
his fellow joint chief executive, 
to quit the Lonrho board. 

There had been speculation 
that Kempinski would be 

merged with Lonrho’s Metro- 
pole hotel chain. Any such 
merger would have been com- 
plicated, however, by tee Lib- 
yan government’s 33 per 


By McNyo Nakamoto In Tokyo 

Mr Aklo Morita, one of Japan’s 
most unconventional yet 
highly regarded businessmen, 
yesterday resigned his post as 
chairman of Sony for health 
reasons. 

Mr Morita, aged 73, who is 
recovering from a brain hae- 
morrhage be suffered a year 
ago, becomes honorary chair- 
man and Mr Masaru fbuka, 
with whom he co-founded 
Sony, will become chief 
adviser. Mr Norio Ohga 
remains president and chief 
executive officer. 

The post of chairman has not 
been filled. 

While Mr Morita’s resigna- 
tion was generally expected 
after his absence from the com- 
pany's day-to-day business 
since last November, the news 
“was a shock to everyone” at 
the consumer electronics com- 
pany, a rnnipgny official said. 

“Employees who are in their 
middle years have great trust 
in Mr Morita, who is regarded 
as a kind of god - although it 
is rather odd to describe him in 
those terms," a Sony official 
commented. 

But it is not just Sony that is 
losing a leader. Mr Morita is 
one of Japan’s last remaining 
symbols of its spectacular rise 
from a war-devastated country 
to the world’s ■wmnii largest 
economy. He ranks with the 
likes of Mr Konnosuke Matsus- 
hita, founder of the world’s 
largest consumer electronics 
company, and Mr Sboichiro 
Honda, who started the motor 
company carrying his nam e, 
for his contribution to the 
country's post-war success. 

The company be co-founded 
grew from a small appliance 
repair shop in the wreckage of 
post-war Japan to a global 
enterprise with annual sales of 
almost Y'LOOObn ($40.63bn). ft 
also acquired two symbols or 
US cultural heritage - the for- 
mer CBS records and the 
Columbia movie studios. 

While Mr fbuka was the 
engineering genius behind 
Sony and established the com- 
pany’s reputation as the stan- 
dard-bearer for high quality 
consumer electronics, Mr Mor- 
ita is credited with building 
Sony into an international 


cent holding in Metropole. 

For Kempinski, which is just 
about to open its seventeenth 
hotel, in Dresden, the sale 
comes at tbe end of a long 
struggle to find a partner. In 
1992, Kempinski, then 42.6 per 
cent owned by Lufthansa, tee 
German airline, was forced to 
abandon plans to merge with 
Meridien, the luxury hotel 
chain controlled by Air France. 

Instead, Lufthansa sold part 
of its stake to Advanta. Today, 
Lufthansa owns 202 per cent 
of Kempinski with the remain- 
der held by other investors. Air 
France sold its 57 per cent 
stake in Meridien to Forte, the 
UK hotel group, earlier this 
year. 

Kempinski yesterday paid 


operation, earning it a reputa- 
tion for bringing out one bit 
product after another, from 
Trinitron colour TVs to the 
Walkman portable cassette and 
CD players. 

His international outlook 
took Sony into overseas mar- 
kets and led to the company 
setting up production outside 
Japan years before globalisa- 
tion became a trend among 
Japanese manufacturers. He 
spent three years living in the 
US at a time when tew Japa- 
nese corporate executives ven- 
tured to live outside the 

country. 

He has also been behind the 
early appointment of foreign 
nationals to executive posts at 
Sony’s overseas companies and 
in his later years spent much 
of his time representing the 
Japanese business establish- 
ment at home and abroad. 

The personable Mr Morita, 
who is said to have related 
comfortably to Sony employees 
regardless of rank, has also 
been seen as the inspirational 
force with the ability to pull 
the ranks to gether in a com- 
mon causa 

Unlike the Sony white Mr 
Morita, together with Mr Ebnka 
and later with Mr Ohga, was 
able to guide by virtue of his 
forceful yet charismatic char- 
acter, the company is now an 
unwieldy organisation suffer- 
ing the pitfalls of over-exten- 
sion. 

Last week, the company said 
that as a result of poor perfor- 
mance at Sony Pictures, for- 
merly Columbia, it would write 
Y265bn off the value of its 
films arm. The write-off which 
came after substantial invest- 
ments in the Hollywood studio 
under its former bead and a 
dismal year at tee box office, 
resulted in a Y309.5bn interim 
net loss. 

“The era in which the com- 
pany can be led by two people 
is over," says one Sony official. 
To cope with its enlarged 
operations, Sony earlier this 
year restructured the group’s 
activities into eight group and 
division units, each headed by 
a company president The aim 
is to give greater autonomy 
and enable them to be more 
market responsive. 

Mr Morita’s departure also 


tribute to Advanta’s role in 
developing the chain. Kempin- 
ski said: “Thanks to Advanta, 
the company achieved a much 
stronger position in Germany. 
Advanta assisted in the merger 
of the company's German and 
international activities which 
were previously separated.” 
Kempinski said Advanta had 
also assisted it in obtaining 
hotel management contracts. 

Hie German oh jiin said its 
link with tee Thai joint ven- 
ture would give it a stronger 
position in tee Asian region, 
the world's fastest-growing 
travel market It said the Kem- 
pfnski nawp would be main- 

tained. 

Dusit Than! said earlier this 
year that it was keen to 


comes at a time when Japan's 
consumer electronics industry 
is under great pressure. The 
yen’s sharp appreciation 
against leading currencies, the 
saturation of the domestic con- 
sumer electronics market and 
the changes In consumer elec- 
tronics, computing and com- 
munications, are threatening 
the status, if not the survival, 
of some of Japan’s most suc- 
cessful companies. 

Mr Morita. an active busi- 
ness ambassador for Japan In 
his role as chairman of the 
Japan-US Business Council, 
wfll be missed for the role he 
played in promoting under- 
standing with the west and in 
representing the Japanese 
point of view to western busi- 
ness leaders who often misun- 
derstood Japanese reticence. 

His outspokenness and unor- 
thodox views have won him 
some critics in Japan, but 
many more supporters over- 
seas and among Japan's more 
progressive-minded business- 


expand outside Thailand. Khu- 
nying Chanut Piyaoui, the 
group’s founder and m anaging 
director, said: 1 would like to 
Invest overseas, not to make a 
lot of money, but because I 
want to present Thai customs, 
tradition, art and culture, food 
and hospitality," 

• Berliner Handels- and 
Frankfurter Bank said it sold 
its 10 per cent stake in 
Advanta Management to a US 
investor at the end of October, 
reports Reuter. 

A spokesman said the bank 
bad long intended to sell the 
stake. He said the sale had 
nothing to do with bourse spec- 
ulation In mid-October that 
Advanta had run into financial 
difficulties. 


men arid public officials? 

Mr Morita, for example, has 
advocated shorter working 
hours and better pay for Japa- 
nese workers, much to the 
annoyance of many employers, 
and called for greater liberalis- 
ation of Japanese markets. 
Sate views, mid his cosmopoli- 
tan mann er, have won him 
admiration as the antithesis of 
the dull, blue-suited, conserva- 
tive Japanese business execu- 
tive. 

Although his forthright man- 
ner was at times used against 
him, he was always widely 
respected and admired for his 
ability to say what many 
thought but were afraid to 
express. 

As he steps out of the lime- 
light of corporate Japan, the 
country has embarked on a 
path towards greater deregu- 
lation and become more out- 
spoken in defending its views. 
Many would agree that the 
change owes much to the 
efforts of Mr Morita. 


Australis Media confirms it is 
in talks with News Corporation 


Study starts into privatisation 
of French tobacco monopoly 


Morita resigns as chairman of Sony 



Akio Morita: built Sony into an international operation 


Few surprises from Deutsche Telekom 


By Ifichalas Denton, Andrew Fisher 
and Richard Lapper 

The distribution of mandates for 
Deutsche Telekom’s privatisation has 
been so heavily, and accurately, trailed 
♦hat the actual announcement yester- 
day contained few surprises. 

That De utsche Bank - whose chief 
executive is Hilmar Kopper - and 
Dresdner Bank would be in the key 
international consortium was never 
seriously in doubt "This is a great day 
for a German bank to have such a 
prominent role in such a significant 
Issue,” said Mr Ronaldo Schmitz, direc- 
tor of Deutsche Bank’s Investment 
banking operations. 

The focus of international interest 
was on the choice of international 
investment bank to give a geographical 
balance to tee global consortium. 

But nor was there any astonishment 
that the German government chose 
Goldman Sachs as the third member of 
the global consortium. Ever since Ger- 
many decided to go for SEC regiaratinn 
for Deutsche Telekom and a full US 
lfctiiigtee participation of a US invest- 
merit bank was well-mgh inevitable. 

Goldman Is the pre-eminent US 
investment bank In Europe and has 
established* close links with Deutsche 
Som over the past four years. It 
wusalways regarded as the investment 

b ^ldman’s expression of the ritual 
investment bank “delight and Tunt 
our" carried more conviction than that 
ofmany competitors who came in but 
nrfth more humble roles. 

“Winning this mandate l jf ipor ' 

tant strategic development bote for our 
SiSiStonons effort end for oiir 

German operation," said Robert 

SSr managing director of tntenrn- 
telecommunications equity 

Sws ten fSf priority for nearly 

„ » iB built upon equity. We 

in the worid's 

tareest ^^dman tops a premier 



of Deutsche Bank 

for growing volumes of international 
equity business. It has been “bote-run- 
ner” in eight separate deals, ranging 
from Den norske Bank to Tele Dan- 
mark. to huge Asian deals, such as 
Indo&at tee Indonesian long-distance 
telecommunications concern. Sales 
from 11 separate tranches of shares in 
these deals amount to $327bn. 

Competitors conceded that Goldman’s 
achievement was a testament to the US 
firm’s long effort hi positioning itself 
for the deal. But one London-based 
executive said: "Goldman have got a 
great headline position but from their 
position the devil is In the detail." 

A global co-ordinator generally takes 
a lead role in most regional markets. 
Goldman has such a position in the 
Americas, but as joint rather than sole 
lead. The firm has not wan inclusion in 
the other areas: UK, the rest of Europe 
and Asia. “Goldman is a global co-or- 
dinator with a difference," said one 
rival. The regional consortia matter 
because, as one investment banker said, 
‘‘sales are the guts of it”. Fees for 
Investment bankers are expected to 
amount to 2£-3 per cent of a total trans- 



Helmut Ricke, chief executive 
of Deutsche Telekom 

action that will at DM15bn ($9.6bn) be 
larger than all German EPOs of the past 
eight years combined. Of this commis- 
sion pool of about DM450m, only about 
20 per cent goes to the managers of the 
transaction, 20 per cent to the under- 
writers and a hill 60 per cent to the 
sellers. 

Warburg bad hoped for four banks in 
the global group and was disappointed 
only three were chosen. Mr Maurice 
Thompson, head of equity capital mar- 
kets at S.G. Warburg of the UK, said: 
“We had obviously hoped for a more 
crowded top line and a position in it" 

So Warburg can regard its position as 
sole lead of the UK tranche as a gener- 
ous consolation for its failure to win a 
place in the global group. Warburg was 
the only bank to gain a sole lead role in 
any region. The hank was buoyed too 
by indications from Deutsche Telekom, 
whose chief executive is Mr Helmut 
Ricke, that about SO per cent of the 
total issue would be allotted to the UK. 
about the same as that earmarked for 
US investors. 

It is expected that 5060 per cent of 
the issue will be sold In Germany by a 


consortium led by Deutsche Bank and 
Dresdner Bank. As for other banks that 
pitched for work in the exhaustive and 
exhausting tender process, there is 
something for everyone, almost One 
source close to the German government 
said over 100 banks would be involved. 

CS First Boston's tactic of concentrat- 
ing its efforts on the role of government 
adviser has paid off A CSFB executive 
said; “The excitement of investment 
banking is all to do with moments like 
this." 

He attributed the bank's success to 
the European character imparted by tee 
link with Credit Suisse and a “polyglot 
structure and mix of nationalities”. 
Other winners included N.M. Roths- 
child, which is to advise Deutsche Tele- 
kom itself. 

The losers are less easy to identify. 
Merrill Lynch had been tipped as a 
global co-ordinator and the govern- 
ment’s, as opposed to tee company’s, 
favourite. It has had to make do with a 
place in tbe American consortium, a 
bitter pill sweetened by the feet that 
Merrill is joint lead with Goldman 
Sachs and Deutsche Bank. 

Kleinwort Benson had lobbied hard 
for a lead role. But the investment bank 
was only three years ago reeling after a 
series of defections and embarrass- 
ments. It said it was disappointed not to 
have won a lead role but privately 
delighted to have an important role as 
co-lead of the UK tranche. 

NatWest is also co-lead but a surpris- 
ing absence is Barclays de Zoete Wedd, 
which had competed strongly for the 
deal. “The big prizes can’t be given to 
everybody," said Mr Andre Teeuw, head 
of BZW in Germany. 

The competition for Deutsche Tele- 
kom may have been fierce and the Fees 
the largest on any privatisation issue. 
But some bankers said work would not 
be particularly lucrative, after tee work 
of pitching for a deal and executing it 
was accounted for. 

“Privatisations when everything is 
considered are attractive but not very 
profitable," said a CSFB executive. 
"You hope It positions you for more 
private-sector business with the com- 
pany and within the industry.” 

See Lex 


F 

1 

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A 

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I 

A 

L 

♦ 

H 

I 

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H 

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S 


The British 
Investment Trust 
PLC. 

The British Investment Trust aims to achieve long term capital 
growth from a portfolio of international investments and secure 
for shareholders regular increases In dividend. 

. Company HalfYear Hnanrial Highlights • 

*s at 30th September (nAsmcUted) 

V 1994 1993 * ; 

. Net Asset Hdne 

Pier Share .. ' 23 ip 220 p 

Ordinary • - 

Shareholders’ Fluids &722m £687m . 

Dividend Her Share ; 2.1 p ■ 2.0p 

■totaled to reflect ihe dun#c hi aituuntfaiR potky for dividend income from r payment due basis to an 
cx-ckvkfcnd kali wMi dfcrt from l April IW. 





Tb: The Secretary, The British Investment That PLC, 

Donaldson House, 97 llaymute Vrracc. Edinburgh EH12 5 HD. 

Mease send me a copy of the 1994 Interim Report. 




n 




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■■■ • 

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Edinburgh 

FUND MANAGERS PLC 


Edtatacfth ftmU Mjrtiscrt pie, Dnmkfaon House. 97 ltaymariieiTfcnau:. Edinburgh HH2 51 ID 


Past performance is not necessarily a guide to future performance. 

The value of shares and income fruiu them can fell as wvlJ as rise and investors may 
not get bade the amount Invested. Member oflMRO 









333:dzi(PU('>{SG>?ZCfe-?x>1lC«nai>fcanir[i>Eficf>-ii-?-*r3:rr«rt-niin 


14 


FINANCIAL TIMES 



.v i*. it r 



/ ,*•«**; ..* ,. . ; \T' •** 

v ' .. ' ^ = - " : > : ; : ' 1 

-r&. 

j ;-<> 

I' ■•..../■■• •• 

m-:% ^ >%•: 

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g. L 



Turbulent 


the storm may have fait the markets but will the 


London 


Atlantic storm 
does its worst 


And shares remain vulnerable, says David Wighton 


T he saloon. bar weather 
forecasters were defi- 
nite. “Roses still 
blooming In Novem- 
ber? It’s not- natural It can’t 
last,” they declared at the start 
of the week. “The Footsie still 
over 3,100, with 10-year gilts 
yielding 8.6 per cent? It can't 
last,” echoed the gloomier City 
forecasters. 

The meteorological cold snap 
has yet to arrive, but the finan- 
cial storm duly hit on Tuesday. 
The map looked all too famil- 
iar, with low pressure over the 
Atlantic leading to precipitat- 
ing share prices in London. 

The FT-SE 100 index lost 4&3 
points on Tuesday as New 
York started to slide, and tum- 
bled another 51.2 points on 
Wednesday after Wall Street 
ended the session down almost 
2 Vi per cent. With Wall Street 
closed for Thanksgiving on 
Thursday, there was then a 
nervous eaTm as the City 
peered at its barometer. Mem- 
bers of the Michael Fish school 
of forecasting (“hurricane, 
what hurricane?”) saw the 
events as a healthy correction. 
Those of a more apocalyptic 
frame of mind ayinpiinryd the 
beginning of the end. 

Nick Knight, equity strate- 
gist at Nomura, advised inves- 
tors to “sell while you still 
can". Has equally gloomy rival 
at Pan mure Gordon, Robin 
AsplnaU, declared himself 
“quite certain" the Footsie 
would hit 2.750 before Christ- 
mas on the way to 5U200. 

That might stOl happen. But 
when New York traders 
returned to their desks yester- 
day, full of turkey and pump- 
kin pie, the wind had dropped. 
New York started brightly and 
there was little change in Lon- 
don shares, leaving the Footsie 
at 3,033.5, down almost 100 
points on the week. 

There was plenty to worry 
about at home, too. Despite the 
cabinet’s so-called suicide 
threat, it seemed at least possi- 
ble that Tory back-benchers 
would call its bluff over the 
European Union finance bin on 
Monday. And there was mount- 
ing unease about what Tues- 
day's Budget might bring. 

In particular, the Fear has re- 
surfaced that chancellor Ken- 


neth Clarke win return to the 
subject of advance corporation 
tax. The cut from 25 percent to 
20 per cent, announced by Nor- 
man Lamont in March last 
year, released £lbn annuall y 
for the exchequer by reducing 
the tax credit that pension 
funds, and other tax-exempt 
investors, can claim on divi- 
dends. 

The money was generated at 
relatively little political cost, 
and there must be a chance 
that Clarke will come back for 
more. But reducing the rate 
cuts institutions’ income from 
equities - so such a move 
would hit share prices, particu- 
larly high-yielding utilities, by 
making them less attractive 
compared with gilts. 

UK institutions have been 
moving into gilts over the past 
couple of months, narrowing 
the yield premium they offer 
over US government bonds and 
over UK equities. The process 
accelerated sharply this week, 
with the yield on 10-year gilts 
falling from 8.6 per cent to 
below 8J> per cent while the 
yield on the FT AD-Share index 
pushed back through the 4 per 
cent leveL 

That cut the ratio of yields 
on gilts and equities from 2.23 
to just over 2.13. The doom- 
stars point out that, at present 
gilt yields, the FT-SE 100 index 
would have to fell to 2,600 to 
bring the yield ratio down to 
its opening year levels. 


B ut the ratio is now 
close to its long-run 
average. As for the 
comparison with US 
Treasuries, gilts have further 
ground to make up, given the 
UK’s better inflation outlook. 

There were some warning 
signs this week. The Confeder- 
ation of British Industry’s 
monthly survey showed an 
increased proportion of manu- 
facturers planning to raise 
prices to offset higher raw 
materials costs. Earlier in the 
week, Courtaulds joined the 
chorus of companies complain- 
ing about squeezed margins 
and said it would put up its 
fibre prices by between 6 and 
15 per cent in January. 

Yet, even if these increases 
stick, it is debatable if they 


Yield ratio 


. Long gtt yield cftrided by FT-SE-A An-Shars Max dividend yield 

2JS 


2.4 



SoUJcee FT GrapHto 


Highlights of the week 


: 

ftfcfr 

--C Range" 

/US* 

:19M :- ■ 


i; ■ 

- ■ 

.oo. week. 

...Hfcfri.v 

. Coat. 


FT-SE 100 Index . 

30305 

-97.5 

36203 

.2876.6 

WaO Street shake-out 

FT-SE Mid 250 Index 

348013 

-05.3 

41G24 

.3369-4. 

Interest rate concerns 

Affled Domacq 

553 

-42W 

883 

540 

Brokers' downgradings 

BTR 

285 

-20 

401 

281 

Profit-taking 

BfflamfJ) 

114 

-37 

aas 

, 114 

Lose warning 

Eastern Group 

782% 

-13)4 

866 

566. 

Windfall tax fears 

Harrisons & Cnwfleld 

149 

.'13 

230 

146 

Disposal tones 

Lonrho 

153)6 

-10 

176% 

124)4 

Lack of support 

Smith & Nephew , 

151)4 

+3K 

159)4 

138% 

bmabnent support 

Smith flWH) 

,448 

t21 

549 ... 

•V W, . . 

Own broker downgrades 

South Western Elec 

740 

-46 

824 

551 

^ Windfall tex fears 

Tate 8 Lvle 

.425 

-19 

487% 

392 .. 

Ba4x (handled se&ig 

Telegraph 

353 

+7 

822. 

.310.. 

. HpWnpor fciuy3 : shares 

Vodafone 

„19S» 

-te . „ 

221 

. .157% . 

Intertns rflaappotnt 

Walsh Water . .. . 


.-48 

744 

.546 ; . w 

Proms ran 


WEEKEND NOVEMBER 


26/NOVEMBER ?7 


MARKETS 


Wall Street 


The market gives a simple message 

Tony Jackson explains the reasons for a fall which had to happen sooner or later 

■■ »•■?■• •■>... *. 'Vv.v. ' sudpIv would tend to 

W ith the benefit of have started moving out Dow .tones S up as weU; aM t 

hindsight, this Instead, investors seem to have • .• - — ;• ;... ™ S/SSwSd Star tK* equity market 

week's plunge on assumed that the strength of .tadusttWAwraQa/- ■■ v -'. SSrJ V male bond bud 

Wall Street was US economic recovery would 4,000. ; . ' ■■■ **■ th» Week a has 


will be passed on to consum- 
ers. Still suffering from the 
over-expansion of the 1980s, 
retailers are finding it 
extremely difficult to push 
through price rises - as BHS 
and Mothercare admitted this 
week. 

All this is encouraging City 
economists to stick to their 
inflation predictions. Indeed, 
Bill Martin of UBS, one of the 
leading pessimists, has just cut 
his inflation forecast for next 
year by 125 points to 3.5 per 
cent As a result, he now fore- 
casts base rates of 8 per cent at 
the end of 1995. rather less 
than the markets are expect- 
ing. Lower inflation means 
investors will require a lower 
yield on equities, so UBS has 
increased its target for the 
FT-SE 100 to 3200 for the mid- 
dle of next year and 3,400 by 
the end. 

Meanwhile, the interim 
reporting season continued to 
produce very healthy dividend 
increases. Granada. Tate & 
Lyle and Vodafone all 
anno unced rises of more than 
10 per cent and water company 
shareholders felt the benefits 
of the industry’s comfortable 
new price corsets. Even the 
back marker, South West 
Water, offered an &3 per cent 
rise, while Yorkshire pledged 
to provide growth of 5 per cent 
per annum after inflation for 
the next five years. 

The market was not 
impressed, tho ug h, with both 
water and electricity shares 
having a poor week. In part, 
this reflected nothing more sin- 
ister than a bit of profit-taking. 
But there were also also 
renewed worries about 
Labour’s proposed windfall tax 
on the profits of utilities. 

That apart, the climate looks 
quite favourable for equities. 
Yet, UK share prices will 
re main vulnerable to turbu- 
lence in New York, where the 
behaviour of retail investors 
could be critical 

With interest rates rising 
and share prices returning to 
the level where many investors 
bought, it would be no surprise 
to see a rush for the door. Until 
that threat passes, UK equities 
are unlikely to enjoy an Indian 
summer. 


W ith the benefit of 
hindsight, this 
week's plunge on 
Walt Street was 
an accident waiting to happen. 
For months, bonds had been 
getting cheaper and stocks bad 
not. Last week's sharp rise in 
the discount rate merely prod- 
ded stocks into action. 
Whether they are back into 
line is a more ticklish question. 

The point is illustrated by 
one simple statistic. At the 
start of February, just before 
the Fed first raised rates, the 
long bond was yielding 6.3 per 
cent and equities 2.7 per cent. 
By last week, the bond yield 
had risen to 82 per cent and 
equities to only 22 per cent. 

To put the same point in a 
different way, the yield ratio 
rose over the period from 2.4 to 
over 2.8. Though this may 
seem a little arcane, its signifi- 
cance lies in the fact that the 
normal range for this ratio is 
between 22 and 2.6. The last 
time it reached 2.8 - that is. 
the last time equities were so 
expensive relative to bonds - 
was before the crash of 1987 (it 
went on to peak at the crazy 
level of nearly 3.6). 

It might seem surprising that 
retail investors, at Least, 
should have tolerated this. 
After all, one of the most stri- 
king phenomena for equities in 
the early 1990s was the surge 
of private savings into mutual 
funds, when the return on cash 
was very low. When the Fed 
began to push rates up in Feb- 
ruary, that money ought to 


have started moving ont. 
Instead, investors seem to have 
assumed that the strength of 
US economic recovery would 
push up corporate earnings 
and therefore stock prices, 
thus providing capital gains to 
mak e good the shortfall in 
income. 

It therefore came as a blow 
to realise last week that the US 
economic cycle seems finally to 
be turning down; or if not, that 
the Fed has every intention of 
pushing up rates until it does 
turn down. The third quarter 
results season just ended 
brought a string of record 
earnings from a wide range of 
companies, not merely the tra- 
ditional cyclical sectors, and 
that may continue for another 
quarter or so. Nevertheless, the 
market senses that the earn- 
ings recovery is faltering. 

An oblique but powerful 
piece of supporting evidence 
comes from companies them- 
selves. This week, Walt Disney 
capped a record year of earn- 
ings by saying it had spent 
$920m since May buying back 
its shares, and that it planned 
to spend up to $4.5bn doing the 
same in future. On the same 
day Merck said it was going to 
spend $2bn on its shares, a 
sharp increase on its previous 
buyback programme. The day 
after, the electronics giant 
AMP (market value $7.3bn) 
said it too would start buy- 
backs. under a programme 
already in place but not yet 
implemented. 

Now, there are two ways of 












Source FF Graphite 


7 . 

V :• .2 -V dE®*? 0 !? . 

•• .. ... . ; •■ * - /-.> Vli ••.’I*",'*! 

•’ '. I s .iAv'. 


raising earnings per share: 
increase the earnings for a 
given number of shares, or 
reduce the shares for a given 
amount of earnings. Not all 
these companies believe their 
earnings growth will falter: 
indeed. AMP specifically said it 
expects record earnings for the 
next two quarters. But in gen- 
eral terms, when companies 
can find nothing better to do 
with their cash than retire 
their own equity, it is likely 
there are squalls ahead. 

The Fed's actions apart, the 
other factor weighing on the 
market’s mfad is political It Is 
Hoar by now that the crushing 
success of the Republicans in 
the mid-term elections could 
prove a mixed blessing. To be 


sure, the Republicans can be 
expected to press for a lighten- 
ing of regulatory and other 
burdens. But they also stand 
for low taxation. Cutting taxes 
is quicker and -easier than cut- 
ting spending, particularly for 
a party which is committed to 
halting the cuts in the defence 
budget 

Other things being equal in 
other words, the risk is that 
the budget deficit will worsen. 
This might seem, a paradox for 
a party which contains such 
powerful figures as Senator 
Phil Gramm, who believes the 
constitution should be 
nTirandfid to prohibit the gov- 
ernment from borrowing at all 
But for the band marked even 
the outside chance of increased 


supply would tend to push 
yfc lfo up as weH and the last 
thing the egutty market nfieqa 
now is a weak bond warket^ . 

As for the week , ahead, , the 
market's indectefon was shown 
by yesterday’s thinly-traded 
holiday rally- Therejjreat 
least two reasons for t hlnlnn g 
the nervousness may . not be 
over. -First,. though tte. Dow 
has ftfliep further in the past 
week than the. broader-based 
S&P 500, it has Men by lea 
since the start of the year. In 
other words, the big leading 
stocks may still be a touch 
overvalued relative to the mar- 
ket as a whole. . -V . . 

Second, watch that yield 
ratio. At around K7, it i s sgl 
on the high side. It is always 
Pftsffihte that the bond market 
will save the day by staging a 
rally. The toughness of the 
Fed’s recent actions reinforces 
tts inflationary credentials; and 
it as its critics charge, it risks 
slowing the real economy too 
sharply, there is nothing the 
bond market likes better than 
a good recession. Either way, 
the past week has rammed 
h omo one simple message, ff 
you want to know where equi- 
ties are headed these days, all 
you need do is work out where 
bonds are going first 



Pharmaceuticals 

Wheeler-dealers with bottomless wallets 


Nearly $25bn has been spent this year within the industry - but why? asks Daniel Green 

A T" hat on earth are Riotnrh and nhai wl ' a,w>,t ti calff CffllUrtffffd' ^ 7’ fo the -US, the payers are in its short history.. The a 1 

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W hat on earth are 
drugs companies 
doing? On Mon- 
day, Switzerland's 
Ciba raised its stake in Chiron, 
a US biotechnology company, 
from 4 per cent to 49.9 per cent, 
valuing the 18-year old Calif- 
ornia business at £2.7bn. On 
Wednesday, the UK’s Smith- 
Kline Beecham sold its animal 
health business for $1.45bn to 
Pfizer, a US drugs giant. 

These deals were just the lat- 
est in a series in which almost 
S25bn has been spent in phar- 
maceuticals this year. But 
there appear to be few common 
threads other than the vast 
sums involved. 

Take SmithKline Beecham. 
Like Ciba, It has small stakes 
in biotechnology companies. 
But, in May. it spent J2.3bn 
buying a US drugs distributor 
and another $2.9tm in July on a 
company specialising in over- 
the-counter branded medicines. 
The seller in the second deal 
was Eastman Kodak, which 
sold the rest of its drugs busi- 
ness - prescription products - 
to Elf Sanofl of France for 
91.71m. 

Meanwhile, Switzerland's 
Roche, which already has more 
than 60 per cent of one of the 
biggest biotech companies. 


Laadtag blotch competes ratattve to FT-S&APbarnacetaiealBlnJhW'- 


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Genentech, paid 95.3bn for a 
conventional US drugs com- 
pany, Syntex. Another drugs 
company, American Cyanaraid, 
went to rival American Home 
Products for almost (10bn, 
while US drugs- maker Eli Lilly 
picked on a distributor and 
paid $4bn. 

Such furious deal-making is 
exceptional in any Industry 
but doubly so for pharmaceuti- 
cals; during the 1980s, there 
were a a mere handful of large 
mergers and virtually no 
acquisitions. In those days, 
though, drugs company execu- 
tives were happy with their lot 
and confident of the future. 


In the US, especially, new 
products were launched at pre- 
mium prices. Patients 
demanded the best, doctors 
prescribed the new products - 
and billed the Insurance com- 
pany. Not surprisingly, the 
profits of drugs companies 
increased every year. 

No more. In the 1990s. those 
who pick up the MIL are learn- 
ing how to drive a bargain. 
Outside the US, this means 
government legislation to cut 
prices: earlier this year, Japan 
forced through a 6 per cent cut, 
while Italy reduced the num- 
ber of drugs available an its 
national health service. 


In the US, the payers are 
mostly -employers who offer 
health insurance to their staff. 
A decade ago, they began to 
use companies called health 
management organisations 
(HMOs) to. buy medical 
services and drugs cost-effec- 
tively. 

Today, one-fifth of those 
holding hAflit h insurance poli- 
cies in the US are in “managed 
care". Their doctors are under 
pressure to prescribe drags 
from an approved list of prod- 
ucts which the HMO has 
obtained at cut prices. The 
effect has been salutary. 

“Drugs company chiefs 
recognise that profits are going 
to be harder to come by," says 
Jacqueline Cantle, pharmaceu- 
ticals analyst at stockbroker 
Smith New Court "One solu- 
tion is to get biggm 1 - hence 
the deal-making." 

Yet as any corporate raider 
will tell you, finding good buys 
is difficult Each of the acquisi- 
tions this year appears to have 
flaws. The distributors are tiny 
businesses in highly competi- 
tive markets. Syntex and 
American Cyanamid are com- 
panies which have seen better 
days. 

The biotechnology sector is 
having one of the worst years 


in its short history. The aver- 
age price at the 250-odd quoted 
US biotechnology companies 
has fellen. by almost 30 per 
cent In the UK, three compa- 
nies were among the worst per- 
formers of the ISO-plus stock 
market flotations of the past 
year. . . 

.Only SmithKline Beecham 
has so far pot its deal-mania 
into a wider setting. It says.it 
Is now a human. health-care 
provider. It does hot treat ani- 
mals and is not confined solely 
to drugs. That means a halt to 
the deal-making, said Jan 
Leschly, its chief executive. 

He added: 1 can't rule out 
further acquisitions, but 
what’s next is to make rare 
that we nuke the most of our 
investments through synergy 
and restructuring" 

Still, while one company 
apparently bows out of the 
deal-making arena, another 
steps in. William Steere, 
Pfizer’s chairman and c hi ef 
executive, indicated that be 
had only Just begun his series 
of acquisitions. And many 
other companies - notably 
Glaxo, Europe’s biggest drugs 
company - have yet to start 

The fountain of cash from 
the drugs sector has not 
dried up. 



Barry Riley 


W ith one foot on 
firm economic 
ground and the 
other on a 

drifting bond market Wall 
Street finally lost its balance 
and took a ducking this week. 
The only puzzle, perhaps, is 
that it did not happen two or 
three months ago. 

Regular readers will know 
that I have been pursuing two 
or three distinct but connected 
capital market themes for 
most of this year. Wall Street’s 
correction takes the story into 
anew chapter. 

One regular theme has been 
the worrying imbalance 
between the yields on 
fixed-interest bonds and 
equities as bonds worldwide 
have plunged into a severe 
bear market but stock 
markets have been reluctant 
to follow. Wall Street has 
stood out as a gravity-drying 
phenom enon: at the beginning 
of this week, the Dow Jones 
Industrial Average was still 
showing a gain of 2 per cent 
on the year thus far. 

A second strand has been 
the Impact of rising US 
short-term interest rates on 
the dollar bond market which, 
by the beginning of this year, 
was Inflated dangerously by 
credit-financed speculation 
and massive positions in 
derivatives. 

At the beginning of 
February. US Federal Reserve 
chairman Alan Greenspan 
said he would cease pumping 
up the financial economy with 


Why Wall Street lost its balance 

Perhaps the only puzzle is that it did not happen sooner 


cheap 3 per cent credit and 
would raise short-term 
interest rates progressively to 
a normal level So far, he has 
got to 5' A per cent and, with 
the US economy still booming, 
plainly he has not finished 
yet. Bonds have been weak all 
year as the leveraged positions 
have been unwound, and the 
recent drift up in the US 
Treasury 30-year bond yield 
from 8.0 to 8.2 per cent has 
finally cracked in the equity 
market 

Third, international flows of 
funds have been following a 
perverse pattern. Long-term 
investors around the world 
have been refusing to finance 
the extravagant habits of the 
Americans, reflected in a 
balance of payments deficit 
likely to be $l50bn for 1994. At 
the same time, Americans 
have been trying to diversify 
their pension and mutual fund 
portfolios by buying foreign 
equities, notably In the 
fashionable emerging markets 
of the Far East and Latin 
America. Tins has added 
greatly to the overall external 
capital needed to balance the 
US books. 

The Japanese - who, 
obligingly, financed the US 
deficits in the 1980s and lost a 
lot of money by doing so - 
have sat on their cash at 
home. So, the dollar financing 
gap has been plugged largely 
through, intervention by Far 
Eastern central hanks anxious 
that their currencies should 
not appreciate too fast they 


have been big buyers of US 
Treasury bonds. 

Even so, the apparent 
one-way bet at the beginning 
of the year - that the dollar 
would climb along with 
interest rates - has gone 
seriously wrong. The further 
the dollar hM fallen, the 
cleverer the Americans feel 
they are to push money 
overseas, and the more 
reluctant are the Japanese to 
throw good money after bad. 

From a low point in the 


The relationship 

between gilts 

and equities 
reached its 
breaking point 
this week 


its lowest levels since 
January. 

Markets are being teased by 
toe surprising strength of the 
global economy which, led by 
the US and the Asian tigers, is 
heading towards growth of 
something like 4 per cent The 
implications for profits and 
dividends are plainly good, 
but interest rates and inflation 
may go up. So, the 
relationship between gilts and 
equities has been stretched, 
and this week reached 
breaking point 

There is, however, 
something very odd about this 
recovery: it is not being 
sti m ulated by bank lending. 

(In most countries, banks are 
struggling to find new 
business; in the UK. for 
instance, the housing market 
is remarkably sluggish as 


thus be that investors cannot 
any longer believe that profits' 
growth in the next few years 
will be high ennng h to justify 
the enormous incnn^» gap 
between shares (yielding 
under 3 per cent) and 
government bonds (around 8 
percent). 

Looking a little farther oat; 
moreover, a structural 
s horta ge of demand for US 
equities seems likely to 

develop. As interest rates Hm, 
mutual-fund buyers will drift 
back to their normal safe 


**”<u ul oavmgs nq^Kirs tUUS 

has already happened with 
bond funds). The US bond 
marlrets will continue to 
absorb a disproportionate 
share of the available 
flows as toe national taste for 

hnwmviviAr M nu. ... * 


summer, however, some of the 
stock markets around toe 
world have tried to rally. The 
emerging markets, for 
instance, completed their 
sbake-out In June and, by 
September, the IFC index of 24 
national markets was showing 
a recovery of 22 per cent Even 
Wall Street got back to within 
about 1 per cent of its all-time 
high as recently as October 28. 
But thin second mfoor bubble 
in equities has now blown up: 
Hong Kong lost 43 per cent (m 
Wednesday alone and even 
Tokyo, normally resistant to 
international trends, dipped to 


Instead, the finance is flowing 
through the capital markets 
This, especially in Europe, is 
leading to a lop-sided 
expansion, with companies 
frill of cash but consumer 
spending relatively subdued. 

This absence of credit 
sti mula tion is a good reason 
for believing that inflation will 
stay tow. But there is an 
accompanying worry that the 
recovery will be short-lived. 
Exports and capital 
investment cannot keep the 

economy booming healthily on 

thetr own without buoyancy 
in consumer spending. 

The immediate reason for 
the crack in US equities might 


uauomu caste tor 
borrowing collides with a low 
ravings rate. 

Eventually, money for 
equities will appear from 
rawtewhene: foreign buyers will 
Probably move back into Wall 
Street stocks, which they have 
shunned for several years 
because they have been too * 
ajjpsive. British pension ’ . 
“poa. for instance, have only 
5^® cffit of their portfolios' 

oV?L eqai ? es ' com P a rod with - 
c oflt in the Far East 

“^o-ipercentmcratinaatal i 

Europe- But US equities wffl 

have become quite 

SnhsfsnM.II . . 


Wall Street has taken a 
plunge. Now we shall see if it 

can swim- 






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FINANC IAL TIMES Wfc-EKEND NOVEMBER 26/NOVEMBER 27 1994 *■ 

_ WORLD STOCK MARKETS 


15 



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AMERICA 

Dow stages recovery in low volume 


Wall Street 


Toronto frustrated by 
worldwide shudders 

But fundamentals are strong, writes Bernard Simon 


US share prices reversed the 
declining course seen earlier in 
the week to close yesterday's 
half-day session solidly higher 
in extremely light volume. 
writes Lisa Bransten in New 
York. 

At the close, the Dow Jones 
Industrial Average was up 
34.98 at 3.709.61. The more 
broadly based Standard & 
Poor’s 5 00 rose 2.57 at 452-50. 
while the American Stock 
Exchange composite gained 
2-25 at 434.65. The Nasdaq com- 
posite was Up 5.82 at 742.52. 
Trading volume on the NYSE 
came to 109m shares. 

Program trading early in the 
morning helped to push the 
market to a positive close for 
the first time since November 
16. The market, which closed 
at 1 pm for the Thanksgiving 

EUROPE 


An upbeat return by Wall 
Street lifted bourses in the 
afternoon, writes Our Markets 
Staff. Mr Francois Langlade- 
Demoyen at CS First Boston 
thought that US weakness 
could resume next week, and 
that European equities offered 
better potential returns than 
their US counterparts. 

FRANKFURT seemed short 
of motivation on the session, 
the Dax index trading nar- 
rowly between 2057.51 and 
2051.12 before closing 4.35 
lower at 2,051.62, 2.4 per cent 
down on the week, in the after- 
noon, the Ibis indicated Dax 
recovered to 2.056.27. 

Turnover Cell from DMS.lbn 
to DM4 -5bn. There were some 
biggish falls In blue chips: 
Henkel, Pricing the nhanns of 
more cyclical chemical stocks, 
shed another DM12.50 to 
DM564.50; VW produced its 
five-year review and dropped 
DMSL50 to DM44&50 as analysts 
said that brokers' forecasts for 
1995 earning s had been consid- 
erably higher than the 
DM890m pre-tax expected by 
the carmaker. 

Retailers saw more weak- 
ness, Kaistadi losing DM12.50 
at DM55450 on its bearish 1994 
outlook, and Kaufhof DM6.40 
at DM451.60. However, there 


WSE volume 


Daily tmdbon) 
450 



November 19S4 


holiday, also pushed back up 
through the 3,700-point floor 
that it had fallen through ear- 
lier in the week. For the first 
time since July. The market 
was closed on Thursday for 
Thanksgiving. 


was brighter news among sec- 
ond liners, noted Mr Eckhard 
Frahm at Merck Finck in DQs- 
seldorf: Krones put on DM40 to 
DM900 after the engineer's UK 
presentation this week; and 
Kampa Ha us, the prefabricated 
housing company which bad 
suffered from a UK analyst's 
downgrade, recovered DM66 to 
DM896 after a television inter- 
view with the chairman put a 
better view of prospects. 

PARIS reversed early losses 
after Wall Street’s opening and 
the CAC-40 index eventually 
dosed 1121 higher at 1,94559 
for a 1 per cent gain on the 
week in turnover of FFr25bn. 

Alcatel Alsthom recovered 
another FFr5.40 at FFr445.60, 
professionals noting that It 
was still more than 50 per cent 
below its year’s high; G€u6rale 
des Eaux staged a te chnica l 
rebound, FFr24, or nearly 5 


US Treasury prices also 
reversed their previous course, 
holding steady after a week of 
relatively steady gains. Two- 
year notes were fiat, while the 
benchmark 30-year Treasuries 
gained slightly. 

Several cyclical stocks 
rebounded from losses earlier 
in the week. Aluminum Com- 
pany of America rose $2% at 
$80%. Allied Signal gained $l*'i 
at $32%, Caterpillar was up $ v « 
at $53%. United Technologies 
climbed $1% at $56% and Inter- 
national Paper Increased $1% 
at $69%. 

Both Bankers Trust and Gib- 
son Greeting gained on news 
that the two had settled a law- 
suit filed by Gibson over deriv- 
ative losses. Bankers Trust 
rose S% at $57% and Gibson 
was up $V/» at $13% after the 
companies announced an out- 
uf-court settlement that essen- 
tially released Gibson from 


per cent higher at FFr510. 

On the losing side, DMC fell 
FFr13.10 to FFr305 after ana- 
lysts cut their estimates for the 
textiles company; and CCF by 
FFr650 to FFr229.10, on disap- 
pointment after the bank proj- 
ected second-half profits simi- 
lar to those of the first six 
months. 

MILAN remained vulnerable 
to the fraught political situa- 
tion and the Comit index fell 
3.48 to 623.17, 35 per cent lower 
over the week. 

Politics also spilled directly 
into business as concern grew 
that the country's second cellu- 
lar telephone licence, awarded 
to an Olivetti-led consortium, 
could be delayed by lingering 
opposition inside the govern- 
ing coalition. Olivetti gave up 
L34 or 1.8 per cent to Ll.868 
while Cir. Mr Carlo de Benedet- 
ti’s industrial holding com- 


$l4m that it owed the bank 
from two swap agreements. 
The settlement put an end to 
the smaller of two derivatives- 
related suits filed against 
Bankers Trust. 

American Depository Re- 
ceipts of Sony, which are 
traded on the New York Stock 
Exchange, rose $1% at $51% 
after Mr Akio Morita. the 
chairman, announced his 
retirement. Sony was the first 
Japanese company to have a 
listing on the NYSE. News that 
A rcher-Danlcls- Midland 
planned a $7Q0xn expansion of 
an Iowa plant did not help the 
agribusiness giant. Its shares 
fell $'/■ at $28%. 


Brazil 


Sdo Paulo failed to extend 
Thursday's 41 per cent recov- 
ery, the Bovespa index losing 


pony, lost L45 at Ll,769. 

Credito Italiano lost L51, or 3 
per cent, to LI ,638 after reports 
that the bank appeared to be 
winning over leading share- 
holders in Credito Romagnolo 
to its L2.O0Obn takeover offer, 
but that it might have to pay a 
higher price and would take 
more than the 48 per cent origi- 
nally proposed. Romagnolo 
gained L493. or 3.0 per cent, to 
L17.096 amid speculation that 
another bank, or banks, might 
enter the fray. 

ZURICH edged ahead in 
quiet trading, supported by the 
better tone on Wall Street, and 
the SMI index finished 3.9 
higher at 2,572.5, for a 1.3 per 
cent decline over the week. 

UBS bearers reversed some 
of the sharp losses seen after 
Tuesday’s extraordinary share- 
holders meeting, picking up 
SFrl7 to SFrl.135 while the reg- 
istered were SFr4 ahead at 
SFr252. SBC continued higher, 
adding SFr2 to SPr364 and CS 
Holding bearers were up SFr4 
at SFr550. 

Swiss Re registered gained 
SFr4 to SFrT92 after the group 
forecast markedly higher net 
profits for 1994 before account- 
ing for extraordinary gains for 
direc t ins urance sales. 

AMSTERDAM was lower in 


at 1300 local time in turnover 
of R$1 19.5m <$l38Am). 

Analysts said that anxiety 
over the future of small banks, 
combined with a lack of defini- 
tion on how Mr Fernando Hen- 
rique Cardoso, president-elect, 
would form a cabinet, contin- 
ued to tax sentiment 


Venezuela 


Caracas plunged across the 
board to a four-month low, led 
by panic selling or the bench- 
mark stock, Electricidad de 
Caracas. The Merinvest com- 
posite index closed 2A5, or 2.4 
per cent lower at 127.24. down 
nearly 20 per cent this month. 

Electricidad de Caracas tum- 
bled 12.00 bolivars to 199.00 
bolivars, down 40 per cent 
since October 28, as investors 
offloaded existing shares to 
participate in a one-for-six 
rights issue. 


lacklustre trade, the AEX 
index giving up 0.36 to 406.45 
for a Oil per cent fall on the 
week. 

Ing rose 80 cents to FL 80.30 
after Thursday’s better-than- 
expected nine-month results 
prompted a number of analysts 
to upgrade earnings estimates. 

CSM dropped FI 1.60 to 
FI 65.80 with Thursday’s nine- 
month figures fallin g short of 
some expectations. 

KPN put on 50 cents to 
FI 54.20, with investors still 
said to be encouraged by the 
company's cost-cutting plans. 


Written and edited by William 
Cochrane end Michael Morgan 


SOUTH AFRICA 

Johannesburg was easier with 
investors reluctant to enter 
the market in the absence of 
an overnight Wall Street lead. 

The overall Index lost 349 to 
5,831.4, for a 93-point decline 
on the week, industrials were 
20.7 down at 6,929.2 and golds 
were 21.3 lower at 2,045.7. 

De Beers aided R1.75 down 
at B94, confirming its recent 
poor showing amid concern 
that its control of the diamond 
market was slipping. Anglos 
were R3 weaker at R231. 


T he Toronto stock 
exchange should be 
booming. The mainstays 
or the Canadian economy - 
metals, forest products and the 
automotive industry - are 
storming ahead. 

Corporate profits are clim- 
bing steeply, with many com- 
panies also boosting dividends. 
Inflation is non-existent. The 
US Federal Reserve’s latest 
interest-rate hike caused only a 
modest hiccup in credit mar- 
kets north of the border. The 
brunt of the adjustment has 
fiillp n On the Panariian dollar, 
giving exporters another rea- 
son to cheer. 

However, the TSE has not 
been able to escape the shud- 
ders which have jolted equities 
markets around the world. The 
TSE-300 index lost 66 points in 
the first three days of this 
week. Although Thursday saw 
a 37-point rally, the Index, 
which closed at 4,085, remained 
11.4 per cent below last 
March’s record 4,609. 

Professionals are puzzled. 
“When things are acting con- 
trary to good and valued 
assumptions, it’s hard to find 
concrete reasons," says Mr 
David Mather, senior vice-pres- 
ident at Elliott and Page, a 
portfolio-management house. 
“The fundamentals for Cana- 
dian equities, especially the 
resource-based stocks, are as 
good as they've been in a long 
time." 

The anomalies are glaring. 
Abitibi-Price earlier this month 
announced its fourth news- 
print price rise of the year, and 
the company should also bene- 
fit from the recent slide in the 
Canadian dollar. But its share 
price has slithered from a 1994 
peak of C$20.62 in late Septem- 
ber to just over C$17. 

Similarly, shares of most 
Canadian gold producers are 
tower than they were when 
gold bullion was last trading 
around US$385 an ounce. 

Canadian bonds are an 
unusually attractive invest- 
ment now. Although domestic 
interest rates have not risen 
much In recent weeks, yields 
In real terms are amimg the 
highest anywhere. The yield on 
30-year government of Canada 
bonds, adjusted for inflation. Is 
at present over 9 per cent, com- 


pared with 5.25 per cent on 
comparable US Treasuries. 

Money managers pinpoint 
the US bond market as the 
main culprit for Toronto's 
equity woes. Many are nervous 
that the 75-basis point rise in 
the Fed funds rate on Novem- 
ber 15 will not be the last. 
Climbing interest rates already 
threaten to brake the recovery 
in both the US and Canada, 
reverse the boom in metals 
markets and choke corporate 
earnings. Canadian economists 
have lowered their growth 
forecasts. Most expect that real 
growth will slow to about 3.5 
per cent in 1995 from 4 per cent 
this year. 

In addition, with Canada's 
Canada 
Toronto SE 300 



Source: FT Graph te 


biggest companies listed in 
both Toronto and New York, 
the turmoil on Wall Street has 
sideswiped the TSE. For 
instance. Northern Telecom 
has lost 8 per cent of Its value 
so Car this month, closing last 
Thursday at C$44.88. 

Most analysts remain confi- 
dent that the recent slide in 
share prices is a relatively 
brief correction. Nesbitt Burns, 
a Toronto-based securities 
dealer, forecasts that the TSE- 
300 will bounce to a new record 
of 4,700 within the next 12 
months. “As bond yields tread 
water and eamlngs jump, con- 
fidence should rise in both the 
length of the profit expansion 
and the height of the cyclical 
peak," says Mr Ben Joyce, Nes- 
bitt's portfolio strategist 

A downward push of interest 
rates to keep the recovery on 
track would reinforce the bull- 
ish case. Mr Frank Hracs, chief 


economist at RBC Dominion 
Securities, told an investment 
conference this week that 
“with the onset of the New 
Year, we will not be surprised 
to see an aggressive investor 
response to Interest rates that 
have not made fundamental 
sense for some time now”. 

Mr Mather favours metal and 
gold producers, and forest 
products companies, especially 
those geared to pulp and news- 
print. On the other hand, he 
has shied away from sectors 
sensitive to volatile interest 
rates, such as utilities. 

Ldvesque Beaubien Geof- 
frion. a Montreal-based firm, 
says in Us latest market com- 
mentary that the outlook Is 
brightest for the oil and gas 
sector. “We believe that the 
market has not fully dis- 
counted a return of oil prices 
above US$20 a barrel in 1995 as 
a result of new secular demand 
from the emerging countries of 
southern Asia and Latin Amer- 
ica,” the firm says. 

But while some analysts may 
see the correction as a buying 
opportunity, a note of caution 
comes from Mr Murray Taylor, 
vice-president for marketing at 
Great-West Life, one of Cana- 
da’s biggest insurance compa- 
nies which also manages 13 
investment funds. 

Mr Taylor, an actuary, warns 
that investors - especially 
those without instant access to 
breaking news - take a big 
risk by attempting to time buy- 
and-sell decisions according to 
up-and-down bumps in the 
market. Average investors 
have only a one-in-four chance 
of getting their timing right on 
a simul tane ous sale and pur- 
chase. lire odds on being suc- 
cessful twice in a row drop to 
about 6 per cent, according to 
Mr Taylor. 

On the other hand, he calcu- 
lates that anyone who has 
bought shares on the Toronto 
stock exchange at any time 
since 1924 and has hung on to 
them for 30 years, would have 
done substantially better than 
investing in fixed-income secu- 
rities. 

On that basis, plunging into 
the market now should offer 
for better rewards than buying 
just before the big crashes of 
1929 and 1967. 


1,553, or 3.4 per cent, to 44,I6t 


Bourses lifted by upbeat Wall Street return 


1 FT-SE AS 

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irednc 

tides'. 


; jttJ * 



Nov 25 

Hourly changes 

Open 

10JQ 

11.00 

1200 

THE EUROPEAN SERES 
1300 1400 1600 Q» 

FT-SEEmAsck 100 

FT-SE Drioaach 200 

1327.72 

1377.18 

1326.95 

1378.70 

1326.44 

137030 

132868 

1377.43 

1327.00 

137832 

1327.13 

137835 

1328.19 

137962 

1328.77 

138061 



Nov 24 

far n Nov 22 

Nov 21 

far 18 


FT-SE Eurasack 100 I329.9S 131133 1331.03 1351.17 IMS 

FT-SE Etnftack 200 1383 40 137141 1391.75 1411.82 1405.91 

iooo evum. npMw 100 - naot no - noon umt ido - i3»ta no - urere t Paw 


ASIA PACIFIC 


LONDON EQUITIES 


Nikkei declines for the fifth day 


Tokyo 


Share prices fell for the fifth 
consecutive day, with early 
gains wiped out by position 
covering by dealers and profit- 
taking, writes Bntiko Terazono 
in Tokyo. 

The Nikkei 225 index lost 
34.41 to 18,66633, down 33 per 
cent on the week. The index 
moved between 18,847.07 and 
18,666.13. Share prices were 
higher in the morning on buy- 
ing by public funds and invest- 
ment trusts. However, a foil in 
the futures market prompted 
selling in the afternoon by bro- 
kers closing their books on the 
last day of November delivery. 

Volume totalled 270m shares 
against 308m. The Topix index 
of all first-section stocks edged 
down 0.14 to 1,484.02 while the 
Nikkei 300 inched up 0.06 to 
272.73. Losers led gainers by 
539 to 399 with 236 unchanged 
and, in London, the ISE/Nikkei 
50 index rose 2.09 to 1220.59. 

Traders said that public 
funds were the only buyers of 
the day. 

“Share prices fell once they 
stopped buying in the after- 


noon," said a Japanese broker. 

Sony rebounded Y130 to 
Y5.160, gaining for the first 
time in five trading days as 
overseas selling eased. Matsu- 
shita Electronic industrial rose 
Y10 to Yl.500 but heavy electri- 
cals lost ground, including 
Fujitsu which fell Y10 to 
Y1JJ00. 

Brokers rebounded with 
Nomura Securities up Y10 to 
Y1.90Q and Yamaichi Securities 
up Y10 to Y695. Banks, which 
reported weak Interim earn- 
ing? on Thursday, were mixed. 
Dai-Ichi Kangyo Bank fell Y10 
to Y1.640 and Mitsubishi Bank 
rose Y20 to Y2.190. 

Steels were hit by profit tak- 
ing. Nippon Steel, the most 
active issue of the day, fell Y2 
to Y373 and NKK declined Y4 
to Y267. Kawasaki Steel how- 
ever, rose Y6 to Y416. 

In Osaka the OSE average 
fell 43.48 to 20,746.33 in volume 
of 30.7m shares. Nintendo, the 
video game maker, foil Y130 to 
Y5.270. 

Roundup 

Activity was restricted 
throughout the region by the 


absence of Wall Street closed 
for the Thanksgiving Day holi- 
day. 

TAIPEI, however, picked up 
1.3 per cent as textile and steel 
stocks found renewed demand. 
The index rose 81.80 to 6,42182 
in turnover of T$41.96bn, for a 
1.1 per cent rise on the 
week. 

The market’s mood had 
improved after the authorities 
had agreed on Thursday to lift 
the ceiling for combined for- 
eign holdings in listed Taiwan- 
ese companies to 25 per cent 
from 10 per cent 

Among textiles Issues. Hua- 
lon rose 30 cents to T$23.60, 
and Shinkong Synthetic Fibres 
50 cents at T$32.30. Chung 
Shing Textile hit its daily 7 per 
cent limit at T$15.60. 

SYDNEY capped a week of 
volatile price swings with a 
second day of gains as the mar- 
ket nearly recouped all of this 
week's early losses. 

The All Ordinaries index 
rose 24.3 to 1,910.0. sharply 
higher than Wednesday’s 16- 
month low of 1,857, but 0.6 per 
cent lower on the week. 

Traders, however, noted that 
most gains were driven by 


ctt. actuaries world indices 


My | ||iii||gnil by The Ffrxmotal Times Ltd., (Mdmsn, Sacha & Co. and NrtWeat Securities Ltd. In ccnjinctton with the institute of Actuaries and the Faculty of Actuaries 

kTIONAL AND 


EQtONAL MARKETS 

puree m parentheses 

low number of 8neo 
stock 

■reunite (68) 

jstrta (IQ 

3tgkim (35) 

ttzfl (28)- 


THURSDAY NOVEMBER 24 1994 

US Day's Pound Local Local Gross 

Octal Change Sterling Yen DM Orrency ft ch g Dtv. 

Index % Index Index Index Index on day Yield 


— WBtNESDAY NOVEMBER 23 1994 — DOLLAR MOEX 

US Pound Local Year 

DoBar Steriiig Yen DM Currency 52 mxk 52 week ago 
Index Index Index Index Index Hlfri Low (approx) 


165.22 

177.22 

166.79 

.170,61 


12709 


rode (103) pe&n 

—flgr 

snea (102). 


ancefiuBj. 

wwvl BA- So 

jngKonfl £6) 199.75 

tandf^ IT .74.42 

CKl —-43742 

gayolaN7) 1B8B.50 

SSSft5=^--S 

7„..J7038 

WtwM- — • >ni*a 


uth Africa (59) ■ 


.331.59 

_ 140.81 

* ____23fl-55 

ttzeriand (47). 

attend (46)-. 

"-184.13 


-157.10 

nd [4e>. — , 92.95 

I Kingdom P04) ^ 13 

A (5131 


1.8 

15002 

102.81 

13336 

144.65 

13 

334 

182.03 

15337 

101.09 

1J1J7 

142 31 

189 15 

148.38 

153 07 


16021 

110.27 

14337 

143.54 

0.2 

1.13 

177 44 

187.55 

11029 

14333 

14331 

19839 

167 48 

170 76 

oa 

15631 

103.78 

135.11 

131.00 

0.8 

4.19 

16639 

157.02 

103-36 

134 32 

131.06 

177.04 

152.74 

152.90 

Z2 

101-03 

106.18 

13831 

268.19 

33 

0.77 

166.95 

167.64 

1(0.77 

13435 

259,98 

- 

- 

- 

0.7 

120:92 

79.27 

103.20 

126.82 

03 

2.6 9 

12635 

11930 

7886 

10232 

125.81 

145.31 

12034 

132.85 

0.7 

234.17 

153.51 

10&B6 

204.73 

03 

1.45 

245.00 

23135 

152.29 

197.90 

202.95 

275.79 

23037 

234 00 


173.78 

11XB2 

14832 

183.71 

13 

0.76 

182.40 

17123 

113.38 

14733 

18160 

201.41 

116.85 

11983 

1.7 

18BJ34 

104.00 

135.40 

14033 

2.0 

3.05 

16434 

155.16 

102.15 

132.75 

13730 

185.37 

159.34 

160.41 

0.7 

132.31 

88.73 

11232 

11232 

13 

134 

138 39 

130 68 

86.02 

111.79 

111.79 

150 40 

12837 

129.94 

as 

327-84 

2K82 

27931 

342.86 

ae 

3.49 

34330 

32*07 

213-33 

27733 

34& 70 

506 58 

34139 

376.75 

0.6 

189.60 

12429 

161.82 

182.18 

i.i 

3.51 

19831 

187.45 

123.40 

160 35 

16035 

216 60 

172.54 

172 54 

0.0 

70-63 

4&30 

6039 

59 .52 

02 

1.7B 

74.44 

7029 

4637 

60.13 

89.37 

97.70 

59.72 

58.72 

-1J 

143.74 

04.23 

122.68 

9433 

-13 

0.82 

163.38 

14432 

35.33 

123.80 

9533 

170.10 

124.54 

136.90 


472.13 

30661 

402.96 

400.02 

0.5 

1.71 

495 37 

487.78 

307.92 

400.14 

407.41 

621.63 

430.71 

469.78 


188803 

1237.90 

161136 

7494.70 

1.0 

t36 

1971.42 

1861.52 

122&41 

1592.41 

742230 

2647.08 

1896.28 

7008.73 

(LB 

130.07 

130.60 

189.91 

16730 

1.1 

a 46 

2oaos 

196.45 

129-32 

766.05 

165.37 

22330 

18733 

1B8.35 


6030 

44.77 

5839 

61.67 

1.9 

4.74 

70.77 

8832 

4199 

57.16 

6039 

77.59 

61.27 

62.95 


18469 

121.20 

157.80 

180.46 

13 

1.83 

192.92 

182.17 

119.92 

155.83 

170.10 

211.74 

165 52 

172.38 


351^5 

230.46 

300.05 

25022 

03 

1.71 

36650 

347.96 

229.06 

297.66 

248.88 

401.38 

294 66 

309.47 


314.72 

20632 

268.61 

30138 

13 

2.13 

328.06 

309.77 

203.92 

264 33 

28838 

342.00 

205 55 

223.17 


133.65 

07.61 

11437 

138.87 

0.7 

4.22 

140.23 

132.4! 

87.16 

11337 

137.75 

155.79 

12100 

132.04 


224.52 

147.10 

191.83 

28037 

13 

1.54 

234.66 

22138 

145.SS 

78635 

25832 

243.01 

175.83 

101.34 


151.98 

99.63 

129.71 

131.11 

1.1 

1.85 

15691 

150.05 

98.77 

128.35 

129.73 

176.56 

146.71 

146.76 


149.11 

97.75 

1Z7.27 

15238 

12 

2.37 

155.42 

146.75 

96.81 

125.54 

150.74 

- 

- 

- 


163.14 

120.06 

15631 

183.14 

03 

430 

193.44 

162-68 

12024 

158.26 

182.50 

214.96 

181.11 

18530 

6.0 

174.77 

11437 

149.18 

184.13 

on 

236 

184.13 

17187 

114.45 

148.73 

164.13 

198.04 

178.95 

188.15 


-L1FFE EQUITY OPTIONS 


Option 


CaU Pub 

ire Apr Jid Jan Apr Jd 


local retail investors in the 
absence of the large US institu- 
tional Investors who had 
driven the market lower earlier 
in the week. 

SEOUL continued lower for a 
seventh straight day as inves- 
tors remained cautious, wor- 
ried that the central bank was 
about to tighten money supply. 
The composite index ended 5.82 
down at 1,085.16. for a decline 
of 3 per cent on the week. 

HONG KONG was unable to 
make much headway, finishing 
only slightly higher after fluc- 
tuating for most of the day 
around Thursday's closing 
level. The Hang Seng index 
closed up 10.97 at 8,658.83, for 
an 8.2 per cent drop on the 
week. Provisional turnover 
was a thin HK$2.61bn. 

BANGKOK saw selling accel- 
erate during the afternoon and 
the SET index finished 7.90 
lower at 1,349.39 after a volatile 
day. The market fell 7.4 per 
cent on the week. 

Turnover was thin at 
Bt4.Sbn. 

BOMBAY put on 1.4 per cent 
on Ihe first day of the new 
account. The BSE 30 shares 
index rose 56.89 to 4,13128. 


MeAOoreq 550 IBM Mft 38 10M 24ft 37M 
(*S52 ) BOO 3 1114 IBM S6ft 58M 70 
Aigrf 260 14 23 28H 8 13M IBM 

1*288 ) 280 414 13W 18 1BH 24H 31 

ASM 60 7 B 10 Hi 3 4 

(*65 1 70 I IK 5H 6D 1H 9 

Bril Airways 360 22H MV, 41M 8H 16 2t 
(*374 ) 390 IW2DH27H 25 32 40 

SriQMnA 420 18 29 37 13 23* 29 
r«21 1 460 414 13H 20H 41ft 48 52ft 

teats 480 43M 55 81ft 3ft 7 13 
P498 1 500 17 SBft 37ft 18ft 22 29ft 


W 

P4I6 » 
BrtWiSj 

. (’152 1 
Bass 
rS2B ) 


380 33ft 41 48 3ft 10 14ft 
420 14 23ft 31 14 22ft 27 
140 15 18ft 23 2 4ft 7 
160 4 9 12ft 11 14 TBft 

500 30 37ft 48 12ft 18ft 2Sft 
550 8 15ft 23W Oft 47ft S3 


UfcIWi 380 28ft 38 47ft 8ft 18 23 
(-378 ) 380 lift 23 33 23K 31 38ft 

CootUdS 420 21ft 34ft 41ft 12 18 27ft 
1*431 1 460 8 17 23ft 37 40 50 

CrnnlMon 493 45ft 52 - 4ft 16 - 

1*530 1 543 1<ft 24 - 24 41ft - 

10 700 59 aft 78ft 5 20ft 27 

C7«7 1 750 28 38ft EDft 21 ft 43ft SO 

Khgfcter tW 23 38 42 13ft 22 32 
(*484 ) 500 7ft 19 2«ft 38 <4ft 55ft 

Land Saar 550 48 57ft 84ft 2ft 7 14ft 
(*598 1 600 13 28ft 33M 19 2<ft J7ft 

Malts A S 390 19ft 30 38 7 12 I9ft 

1*396 ) 420 5ft 16 21 74ft 27ft 35 

KUWest 4a 47 55ft a 4 16 21 

f*499 I 500 19K 31 41 17 34 40 

Santtury 390 28 38 4Sft 7 13ft 20ft 
rW7 ) 420 10 22ft 2814 20ft 28 35ft 

Shcfl Inrs. 650 52 80 87 3 12ft 16ft 

r»M 1 700 17ft ZTto 37 19 3414 38ft 

Sonehaus? 200 16ft ft 25 ft 3 6 Bft 

1*214 ) 220 5 1 0ft 15 12ft 15ft 19ft 

Trafalgar 80 8 7ft 10 4 7ft 7ft 

CBt | 90 1ft 3ft 8 11 12ft 13ft 

Unilever 1100 35ft 55 08 21W 42ft 54 
|*I10O 1150 14ft 31ft 48 5Zft 72ft 83 

Zeneca SCO 81 74 ft 84 7 23ft 30 

(*847 ) 850 28ft 44ft 56 24ft 46 S3 

Option Ftft Mry Aug fea May Aup 

Grant Met 360 34ft 30ft « 8 12ft 17 

1*386 | 390 1 Bft a 29ft 22 26ft 31ft 

Latftreke I4fl ttft 24ft 27 2 6 7 

1*157 J 160 9ft 13 16ft 9ft 15 16 
LUBtscUB 300 23 30 34 6 15 18 

1*314 | 330 8W 15ft 20ft 21 32 35 

Option Dec War Jm Dec Mat Jun 

Puns 110 11ft 17 19ft 2ft 5ft 8 
(*U9 i 120 Sft 12 15 6ft 10 13 


OpOon 


Fell Hay Ang fan May Al® 


am Aero 448 31 44 - 22M 34 

r<50 > 487 IS 28 - 46 57 - 

BAT tads 420 38ft 43 48 9ft 21 27 

(*441 ) 460 18 22 27ft 28ft 42ft 48ft 

SIR 280 17ft 22» Z7ft 9 15ft 18 ft 

1*285 f 300 9 13ft IBM 20 27ft 29ft 

am Teton 360 21ft 29M Mft 9 13ft 19» 
1*374 ) 190 7ft 18 2Dft 27 30 38 

Cafiuy Sdi 420 28 31 ft 38ft Sft 19ft 23ft 
r*30 ) 4a 8 14 21 33 44 48ft 

Eton Eke 750 SS 75ft 90ft 22 33ft S3 
1*788 | 800 32 43 84 46» 56 77 

Gurmera 420 44 Sift 65 2ft ID 13 
(“456 ) 460 17ft 28 31ft 14 Z6H 30 

GE£ 260 19 25ft 30 5» 8 12ft 

(-273 ) 280 8ft 15 19ft 15 17ft 22ft 


«rtcuf609 
ope (706) 
idteillQ 


172 .10 

107.54 

___._224.42 


Ifle Basin 


ai 

0.4 

1B335 

159.02 

107.09 

10435 

139.42 

135.72 

143.13 

149.74 

0.1 

09 

2.90 

ai3 

171.97 

109.81 

182.38 

167.52 

108.89 

10569 

138.91 

13*74 

142.99 

14891 

17850 

155 26 

1SS26 

tFT.tGOLD f 

AINESJ'N 

IDHX^.v : “ 

— i 

KMk 

law 

0.7 

21390 

139.64 

18190 

211.10 

13 

1.40 

222.01 

210.39 

13690 

179.96 

208 39 

233.91 

173.19 

177.67 


Nov % cog 

Woes te 
yfetd % 

-0.9 

161.71 

99.45 

129.48 

10394 

-09 

1.18 

161.31 

1S232 

10037 

13030 

104.80 

176 06 

134 79 

146 32 


24 oo day 

23 a v 

-0-3 

15490 

101.40 

132.02 

121.82 

-0.1 

2.03 

163.52 

154.40 

101.64 

132.08 

12296 

175.14 

14X00 

149.91 

GbH Nto todn tpq 

191547 *09 

183893 184894 SUMS 

235 

238790 17SZ92 

0.0 

171.43 

112.38 

148.31 

i8ai3 

OJ] 

2.97 

1BO.S9 

170.49 

112.73 

146.86 

180.13 

192.73 

175.67 

184.71 





as 

afl 

-03 

-0.1 

03 

142.58 

93.45 

12197 

12993 

13 

290 

140.94 

140.64 

82.58 

120.31 

12834 

150.12 

136.19 

136.19 

■ Rogioaal WkM 


3140.18 323598 77P3iS 

433 

371197 230*45 

229.71 

156.45 

16039 

196.00 

21140 

03 

3.06 

239.88 

296.51 

148.11 

193.77 

211.39 

29651 

232 W 

236 04 

Africa (16) 

310792 HI9 

10266 

13053 

126.62 

0.0 

293 

16533 

156.02 

102.71 

133/47 

125.04 

176.65 

145.58 

151.37 

fiiBtnkda (7) 

2428S1 -05 

2441.77 2521 .a 2289.65 

237 

301399 217198 
203965 144947 

159.49 

104.56 

136.12 

139.70 

09 

2.18 

188 20 

158.90 

10490 

136.33 

139.76 

178 59 

155.96 

160.50 

farifr Amarlcj (11J 

146741 *13 

144907 1481.15 176*08 

891 

172.78 

11337 

147.47 

172.95 

0.5 

2 98 

181.51 

171.39 

11292 

146.61 

172.17 

195 JO 

176.34 

17798 

Copyngrx. Tha Financial Tknas Urmtad I9M. „ 

Faunas VI tacfcels thaw number of compotes. Base US Dorlara. Bare Vafrw* taoaoo 31/iaTO. 
Predacaeaor Gold Mines Mre: Nov 2& 238.8; day 1 * tfonga: *81 pooa; Veer hb* Z&O t fartrt 
uw oncca wore lauvaliwft far thfa addon- USA itrefcar docad 2471V94. 

-0.2 

161.S7 

105.92 

13790 

143.60 

09 

2.36 

170.50 

160.99 

105,96 

137.72 

14162 

180.80 

1S8.8S 

162 66 


RISES AND FALLS 




. 

Cate 



Fite 



Opten 


Feb 

Key 

mb 

Feta 

May 

Am 

Henan 

220 

12ft 

IBM 

19 

6ft 

lift 

14ft 

(*227 ) 

240 

4ft 

8 

10H 

IBft 

22ft 

28 

Lasno 

140 

10ft 

15ft 

18ft 

bft 

8 

flft 

H44 1 

160 

3 

7 

to 

18 

19ft 

20ft 

Lucas lode 

200 

12ft 

17 

22 

9ft 

14 

IBM 

C200 ) 

220 

8 

9 

13ft 

22 

28 

28ft 

74 0 

600 

34ft 

48 

57 

18ft 

35ft 

42 

(-803 1 

OO 

13 

ZSM 

35ft 

47H 

64ft 

71 

IT fclii i^in 
rvunTton 

160 

21 

25 : 

27ft 

1» 

3 

5 

H79J 

1M 

8 

12ft 

16 

22ft 

32 

34 

Pruteua 

300 

22ft 

27: 

30ft 

J 

15 

17 

012 1 

330 

8 

12 

IBM 

22ft 

32 

34 

BTZ 

800 

98ft 

68 

81 

11 

29ft 

38ft 

C831 J 

850 

28 

«1ftl 

56ft 

38ft 

55 

61 

tafcnd 

460 

38 

38 < 

42ft 

14ft 

30 

34ft 

r468 ) 

500 

12ft 

20 

25 

37ft 

65ft 

59 

Royal ktxe 

280 

a 

Z7 

32 

12 

18ft 

21 

C2flS) 

300 

12 

18ft 

23 

23 

30 

32ft 

Tosco 

240 

14 

1914 21ft 

8 

Mft 

17ft 

rz42 ) 

260 

6ft 

10 

12ft 

20 

26 

29 

vodalone 

183 

18ft 

— 

- 

5ft 

- 

- 

P93 J 

an 

8 

13 

17 

14 

17 

20 

WBtams 

330 

27 

34ft 

SB 

S 

13 

14 

C347 ) 

380 

to 

18ft: 

22ft 

18 

28 

29 

Option 


Jan 

*9 

•M 

Jai 

Apr 

Jtf 

BAA 

475 

32 

44 

- 

«ft 

9 

- 

T499 J 

500 

18 

28ft: 

35ft 

13 

IBM: 

Mft 

Thames wo 

460 

33ft 

48 1 

54ft 

8 

12 : 

21ft 

(-484 ) 

500 

lift 

23ft: 

S3 ft 

23ft 

30ft 

42 

OPten 


Dee 

Mar 

Jin 

OK 

Mar 

Jkm 

Abbey Nan 

390 

21ft 

32ft! 

17ft 

3ft 

Mft: 

I1M 

r«s j 

<2D 

SW 

10ft 22ft 

17ft 

31 

38 

Amstrad 

30 

2 

3ft 

4ft 

1ft 

3 

4 


35 

ft 

1ft 

2ft 

5 

aft 

7 

Barttays 

550 

41ft 

571 

33ft 

3 

15ft: 

ctm 

r5B8) 

600 

lOft: 

27ft 37ft 

21ft: 

39ft' 

16ft 

Bus arde 

280 

18 : 

27ft 32ft 

4ft 

9ft 

16ft 

(233 ) 

300 

(tv* 

17 

22 

12 

iBft: 

28ft 

British tea 

2B0 

17ft 

2B 

32 

Ift 

8 

13ft 

C29b 1 

300 

5 

14ft 

21 

9 

i« : 

23ft 

nho<K 

180 

10 

IB 

22 

4ft 

Bft 

Mft 

(*185 1 

200 

2ft 

7ft 

13 

IBM 

21 

28 

Hllsdown 

160 

9ft 

14 17ft 

2 

5ft 

10 

H67 1 

180 

1 

5 

8ft 

tlfft 

16 

22 

unmo 

140 

15 

19 

23 

1 

5 

7 

nsai 

180 

Sft 

Bft 12ft 

Bft 

14 

17 

H20 Power 

460 

38ft. 

48ft 58ft 

Sft 

13 

19 

r<96 1 

500 

8 

25 

37 

Mft! 

Sft 

37 

Scot Power 

330: 

21ft ‘ 

28ft 3914 

4ft 

14 

20 

(-345) 

350 

B 

15 26ft 

19 

30 

38 

Seats 

100 

7H 

10ft 

12 

I 

Sft 

5ft 

(105 1 

no 

2 

Sft 

7 

Sft 

B 

11 

Fine 

220 

10 

18 22ft 

4 

8 

14 

rz» ) 

2<0 

1ft 

8ft 

13 

15ft 

19 

25 

Tvmac 

120 

8 

14 

17 

3 

Bft 

10 

rias) 

130 

3 

9 

12 

8 

lift 

IS 

Thom EM 

960 ; 

MH! 

52ft 78ft 

11 

23 34ft 

1-974 ) 

1000 

g 28ft -Sft' 

Wft 

50 59ft 

TS8 

200 

a 

24 27ft 

ft 

Bft 

Sft 

r2l8 ) 

220 

B 

12 

IB 

6ft 

14ft 

18 

TcvuWns 

220 

7ft 

14ft 

21 

5 

11 14H 

(*222 ) 

240 

1 

Bft 12ft 

18 

23 

SB 

Wencame 

550 

32 

55 70ft 

is : 

?9ft 44ft 

1*866 1 

TOT 

9 31ft 

47 

41 

56 

71 

Option 


Jan 

Apr 

M 

Jan 

Apr 

Jti 

fUavn 

600 

39 ! 

53ft 

67 

14ft : 

Mft 

38 

rea ) 

550 

Wft 

30 43ft. 

10ft ! 

57ft 

65 

tesersosa 

700 , 

39ft 1 

58ft 68ftl 

Mft 

43 

52 

7715) 

7*0 

17ft: 

33ft 46ft 

47 ; 

72ft 

81 

Reuters 

460 

25 

36 

48 

11 22ft 27ft 

(*409 ) 

an 

eiBft 

28 34ft 44ft 48ft 

Opto 


nb 

Key 

«ng 

Feb 

Mft 

Aug 



On Friday • 

Rlsea Fete 

Shim 

— — On the week ■ — — 
FOeon Fans Seme 

British Finds 

12 

40 

9 

170 

74 

108 

Other Fixed Interest 

0 

0 

14 

20 

0 

60 

Mtoerel Extraction 

34 

B9 

S3 

206 

374 

400 

Genera) Manufacturers 

SI 

120 

400 

418 

830 

1.797 

Consumer Goods 

30 

44 

113 

129 

300 

496 

Services 

05 

85 

342 

320 

631 

1500 

UtlStles 

18 

13 

12 

41 

126 

48 

Flnanctato 

54 

106 

206 

288 

629 

902 

Investment Trusts 

72 

44 

340 

288 

781 

1205 

Olhere 

27 

22 

68 

140 

264 

179 

Totals 

403 

500 

1,812 

2432 

4097 

8,760 


Drta Dosed on Mom compar4at bud an On London Snem Service. 

TRADITIONAL OPTIONS 

fart Dealings Ncwem&er 21 Exphy 

Last Deetegs Decanter 2 Settlement 


February 22 
Mrtrti 0 


CaUs: Bute (tea, CaMs, Copyright, Kfagrtreat, RAnmet, Ovoca Raa, Storm Grp, 
Totow 08, Puts 8 Cate; Aa*wx. Ovoca Rea, TraMgar Haa* Tftlow 01 


LONDON RECENT ISSUES: EQUITIES 


Issue Amt 
price paid 

P m 

Mft 

cap 

(Era) 

1904 

High Low Stock 

Close 

Price 

P 

+/- 

Nat 

tflv. 

DJv. Ore 
cm. y <d 

fVE 

net 

- 

FJ>. 

10.8 

ea 

70 Abtruat Late Am 

84 


- 

_ 

- 

_ 

- 

FP. 

132 

63 

48 Do warrants 

48 


- 

- 

- 

- 

- 

FJ>. 

115 

192 

180 i&AdarB Pmtg 

192 


1028% 

8LI 

1 A 

112 

150 

F.P. 

763 

149 

145 Ashbourne 

147 +1*3 

WN3J) 

3.1 

2*0 

105 

100 

FJ>. 

68.8 

S3 

85 BZW CornnodUes 

8512 


- 

re 

- 

- 

- 

FJ>. 

5.78 

47 

37 Do. Wrts 

37 


re 

- 

- 

- 

- 

F.P. 

453 

104 

65 ^Catena 

85 

-1 

re 

- 

- 

- 

280 

FJ». 

303 

287 

280 ChurcM China 

285 


RN9.86 

22 

4*3 


100 

FJ>. 

204 

130 

101 Euddian 

HE 


- 

- 

- 

- 

141 

F.P. 

7X5 

143 

143 Ewovein 

143 


WN6L2 

IS 

5.4 

11-4 

- 

FJ>. 

487J) 

486 

485 FWefty Spec Urts 

487 


- 

- 

- 

re 

- 

FP. 

66J 

178 

108 FBmnlc C*leh 

158 

-5 

RNO-75 

2*6 

06 

602 

100 

FP. 

na 

101 

100 nrtsbtxy SrrVrC 

100 


- 

- 

- 

- 

100 

FP. 

290 

102 

88*z far X Col ErragC 

101 


- 

- 

- 

- 

100 

F.P. 

30.3 

102 

98 Horn Govett 1000 

101 


- 

- 

- 

- 

_ 

FP. 

29.1 

100 

90 NVESCO Korea C 

97 


- 

- 

- 

_ 

180 

FP. 

1600 

223 

205 Irish Permanent 

221 


i#feO 

2-0 

5.4 

7.7 

215 

F.P. 

690 

232 

223 JJB Sports 

231 


RNSlG 

2.4 

12 

I4L1 

120 

FP. 

67.4 

138 

120 SeaPerieci 

137 

«8 

■ 

re 

- 

_ 

115 

FP. 

22X6 

126 

117 TLG 

125 


WN3l5 

2.0 

15 

17.9 

170 

FP. 

19.4 

173 

105 Tde-Cine Cel 

16S 


RN5.44 

22 

4.1 

11.4 

100 

fP. 

17.8 

102 

102 WeBngton Un. 

102 


“ 

~ 

“ 


RIGHTS 

OFFERS 









Issue 

price 

P 

Amount 

paid 

up 

Latest 

Renun. 

date 

1904 

High Low 

Stoeft 

Closing 

price 

P 

77 

PM 

30112 

3pm 

2pm 

Apolo MeUe 

2pm 

295 

NS 

sn 

80pm 

34pm 

Lord 

34pm 

27 

pa 

28711 

S'ipre 

Zhprt 

Martin lid 

awn 

37 

ra 

371 

Spm 

3pm 

OM 

3pm 

85 

Ki 

sans 

16pm 

6pm 

fteaaac 

6pm 

285 

Hi 

871 

57>2pm 

40pm 

Seton HeaBtL 

40pm 


FINANCIAL TIMES EQUITY INDICES 

Nov 25 Nov 24 Nov 23 Now 22 Nov 21 Yr ago nggh 


■Low 


Ordinary Share 23233 23263 23233 2369.1 23903 2360.3 27133 2240.6 


UMa/ee 160 a 28 29 2» 6 8 
(-178 l 180 18ft 14 18 9ft 14ft 17 

- Unpafymg marty pries. Pram turn shown are 
based on sertamem prices. 

Noventw r&,Totai contracts; 21.033 Cafe: 
1 1.377 Putt 03» 


Ord. dfv. yfeu 

<40 

<48 

<49 

423 

433 

a S3 

<51 

643 

Earn. ytd. % full 

6.61 

0.00 

661 

644 

635 

4.52 

661 

682 

P/E ratio net 

17.44 

17.47 

17.45 

17.93 

1618 

27.75 

3643 

1604 

P/E ratio nl 

1702 

17.08 

17.03 

1755 

1700 

25.73 

3060 

17.02 


Tor 198 *. Orabwry Shorn ndn Wee compudon: Mpi 2713.6 atCW; low 48 * 264 BM 0 
FT CMtary Share index base daw 177/35. 

OreSnary Sham hourly changes 

Open 9J0 IQjQO 11J0O 1230 1330 1430 1530 1830 High User 
23233 2316-2 2313.9 23123 231X6 2315.4 23153 2321.7 23223 2324.1 2310.4 
Nov 26 Nov 24 Nov 23 Nov 22 Nov 21 Yr ago 

SEAQ bargains 20.492 22386 27.343 24,284 24,305 34313 

Equity turnover {Cntf - 13063 1489.6 13313 14463 1526.1 

Eqiity bargainer - 27347 20350 25.980 27.607 39,518 

Swiss traded (mOt - 5393 6813 849.6 6684 B513 

iExdbcSng Mararicol txHtneaa one mereeaa amove*. 


A Prime Site for your 
Commercial Property Advertising 

Advertise your property to approximately 
1 million FT readers in 160 countries. 

For details: 

Call Emma Muilafy on +44 71 873 3574 
or Fax: 444 71 873 3098 











































































































/ 





u+ 




NOV 



FINANCIAL times WEEKEND NOVEMBER 26/NOVEMBER 27 1994 


17 


?tr 


CURRENCIES AND MONEY 



MARKETS report 


* Lira weakens 


Dollar 

DM pars 


Sterling 


- ~ ’Ui 

_• ‘-U 




•^3:- 

:i ifb 
3«: 

s 

% 3 l fi.8*. 

ir : 3*siS : ' 
•« Mit: 

,& -!? 4% l: 
’s ' e ;2“iSj«* 

. '2b 1 S; 

: 'i -ii.a ji 

* m g $3 

is 

:!t S ffl 






. S'Jji 
l >: *||* 

' •" :vj2jja’ 

.• Vi 

1 :|l 

•’ tb’S- 

V: 'ifiS 

.* ..’Sfi- 

:t i 5 a:. 

r li|-‘ 

: -3 "hNPS: 

.ill S i 

$ III: 

•ii 

!* : ml« 

•: 

•* j ~ * m 

-.7 :!«||r 
•; v|-: 

":Vfc !5 

- 


’’-.I 1 ! 

r«:;t 

' '^!S- 

'■ • ft 'is. 

■ : w: 

; ■. i 

; ?■ j;i ;iSi 

• :-i is?; 

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•••: ■■: :5., 

■ ■ | »i : . 

• \ f: ”.ur 

- : • :. ; s 
• :: .■ -.as . 

• r ‘ •“ 3d‘. 


The lira yesterday fell to a 
record low on the the foreign 
exchanges amid continuing 
uncertainty about the survival 
of the prime minister. Mr Sil- 
vio Berlusconi, and his govern- 
ment. writes Philip Gaurith. 

The lira finished in London 
at LUJ3S against the D-Mark, 
from L 1,034. Analysts are now 
predicting that the lira could 
fall to L1.050, or even L1.1Q0. 

Market activity was quiet as 
the Thanksgiving holiday in 
the US on Thursday spilled 
over into a long weekend. 

The dollar traded in a very 
narrow range to close at 
DM1.5589. from DMI558Z, and 
Y98.765 from Y98.435. 

Sterling had a stable day. 
despite lingering political 
uncertainty. It finished at 
DM2.4339. from DM2.4366. and 
at $1.5632 from $1.5622. 

■ A magazine opinion poll 
showed 53 per cent of Italians 
felt Mr Berlusconi should not 
resign over the corruption 


probe, but currency markets 
proved less sentimental. 

While there were no fresh 
developments to push the lira 
lower, sentiment clearly 
remains nervous. Investors 
appear to be troubled not so 
much by the prospect of 
another I talian government 
felling, as by what this would 
mean for managing the budget 
deficit, and pensions reform. 

Although some analysts 
believe the lira could fell as 

■ Po u nd fat How York 




DM per £ 


French Franc 

FFr per OM 


2.46 


3,42 


MW 2S —OOBB — 

cm I £630 

1 mo 1.5029 

3 mm 1.5K6 

IF 1-5503 


■ftw. dam 
1-5700 
1.5099 
15036 
15666 


low as Ll.100 against the 
D-Mark, others believe the 
downside is more limited. Mr 
Neil MacKinnon, chief econo- 
mist at Citibank in London, 
said he was “disinclined to 
raise his LL.Q50 forecast." 

He said the bank's volume 
analysis suggested its custom- 


Scurce: Ootelruam 

ers already had long D-Mark 
positions against the lira. The 
scope for further selling was 
thus fairly limited. 

“I would not want to overdo 
the gloom, but it is very diffi- 
cult to see the lira making sig- 
nificant headway, even in 
favourable political circum- 
stances," said Mr MacKinnon. 

■ The Belgian franc weakened 
slightly after a newspaper 
article, attributed to Swiss 
Bank Corporation, predicted a 
10 per cent depreciation of the 
Belgian franc over the next 


Nov 1994 


year. The franc weakened to 
BFr20.6 against the D-Mark, 
from BFr20.58. before recover- 
ing to close at BFr2057. 

SBC distanced Itself from the 
article, describing it as a 
“hypothetical interpretation of 
scenarios”. The house view is a 
largely unchanged exchange 
rate over the next year for the 
franc against the D-Mark. 

A suggestion In the article 
that the Belgian and Luxem- 
bourg francs - currently at 
parity under a monetary agree- 
ment - would decouple on Jan- 
uary 1. was denied by the Bel- 




gian and Luxembourg finance 
ministers, as well as the Lux- 
embourg treasury director. 

Mr MacKinnon at Citibank 
said talk of the franc devaluing 
was “baloney. The Belgian cen- 
tral hank will go through hell 
and high water to maintain the 
link with the D-Mark.” He said 
that the currency markets 
were also fairly immune to 
capital flows, with market 
uncertainty more likely to 
show up in bond prices, rather 
than the currency. 

■ Short sterling futures lost 


ground after the release of the 
CBI monthly trends survey 
showed the proportion of man- 
ufacturers planning to raise 
prices rose again this month. 

This prompted speculation 
that interest rates may rise 
again after the next monthly 
monetary meeting on Decem- 
ber 7. The March 1995 contract 
settled at 92B9, from 93.07. and 
three month LIBOR rose to 6% 
per cent from 6 per cent 

In its daily operations, the 
Bank of England cleared a 
£500m gfrnrt a g r> at established 
rates. 


POUND SPOT FORWARD AGAINST THE POUND 


DOLLAR SPOT FORWARD AGAINST THE DOLLAR 


Nov 25 


Ooatng Change Bkfofter 
mid-point on day spread 


Day's Mid 

high low 


One month Three mont hs One year Bonk or 
Rate %PA Rata %PA Rate %PA Eng. index 


Ctoslng 

mid-point 


Change BkVoffer 
on day spread 


Day's mid 
tegh low 


Ona month Three months Ons year «LP Morgan 
Rata %PA Rata %PA Rata %PA 


Europa 

Austria 

Belgium 

Oanmark 

r— -» 1 

rtreana 

Franca 

Germany 

Greece 

Ireland 

tt* 

Luxembourg 

Netherlands 

Norway 

Portugal 

Spain 

Sweden 

Switzerland 

UK 

Ecu 

SDRf 


iSch) 17.1522 
IBFrJ 50.1114 
9.S431 
75156 
8.3716 
2.4366 
(Dr) 375.656 
CO 1.0143 
(L) 2528-2! 
(LFr) 50.1114 
(FQ 2.7295 
(MO) 10.6819 
(Es) 248.775 
£PtaJ 203.439 
(SKr) 11.6741 
(SFr) 2.0643 
(S3 

- 13801 

- 0931788 


fDKO 

(FM) 

(FFr) 

(DM) 


-0.0188 

455 - 588 

17.1587 17.1161 

17.1478 

03 

17.136 

04 


* 

115.4 

Austria 

(Sch) 

*03211 

721 - 507 

50.1660 500310 

500864 

06 

SO 0014 

09 

49.5214 

12 

117.1 

Belgium 

(BFf) 

*00126 

400 - 481 

05494 05 IK) 

9.5413 

02 

9.548 

-02 

9.5348 

a i 

1174) 

Danmark 

(DKr) 

*0.0473 

071 - 240 

75270 7-4520 

- 

- 

. 

- 

- 

% 

88.1 

FWand 

(FM) 

+0.0107 

888 - 743 

83802 8.3488 

BJ708 

0.1 

H-vm 

04 

8J3011 

0.8 

1100 

France 

(FFr) 

+0 0027 

358 - 373 

2.4382 2.4298 

2.4355 

o.s 

2.4317 

08 

2.4002 

1.5 

126.4 

Germany 

(D) 

+0592 

557 - 755 

375.930 372.694 

- 

. 

- 

- 


re 

- 

Gtoocq 

(Dr) 

*03032 

136 - 149 

10157 1.0099 

1.0141 

02 

1.0137 

02 

14)156 

-0.1 

104.9 

betraid 

09 

+1232 

705 - 942 

252050 2512.04 

2534 64 

-3.0 

2545.64 

-ZB 

2596.19 

-2.7 

703 

hoty 

0) 

+03211 

721 - 607 

501660 50.0310 

500864 

0.6 

50.0014 

09 

405214 

12 

117.1 

Luxembourg 

(LFr) 

+0001 

28S- 303 

2.7314 2.7236 

2.7283 

OS 

2.7245 

0.7 

2.0929 

1.3 

1 20.9 

Notheriurds 

(FI) 

+00200 

786 - 852 

10.7068 106410 

106816 

D.O 

10.6849 

-0.1 

10.684 

OO 

85.6 

Norway 

(NKr) 

+0253 

673 - 877 

248476 248.155 

250505 

-83 

253.685 

-7.9 

- 

. 

- 

Ponugrf 

<&) 

+038 

387 - 510 

203.515 202.832 

203.809 

-22 

204.464 

-20 

207349 

-15 

85.6 

Spain 

(PUi 

+0.0539 

644 -838 

11.7044 11.6Q24 

11.6928 

-1.9 

11.7306 

-1.9 

11 B926 

-1.9 

75.7 

S+rertan 

(SKi) 

+0.0012 

634 - 651 

2.0859 2.0557 

23161 

19 

241538 

2.0 

2.0117 

2.5 

1206 

Swtaertnnd 

(SFO 

- 

- 

- 

~ 

- 

. 

- 

- 

• 

79 -B 

UK 

(C) 

+03017 

70S -806 

1^807 1^771 

1^8 

0.0 

1.2805 

-ai 

1.2735 

OS 

- 

Ecu 



SDftf 


Argentine 

(Peso) 

1^633 

+00015 

630 - 636 

1.6650 1.5B10 

. 

. 

. 

. 

. 

. 

_ 

Argentina 

(Peso) 

Brazfi 

W) 

13427 

+00087 

409 - 444 

1.3446 13315 

- 

- 

- 

- 

- 

• 

- 

Brazil 

(W) 

Canada 

ft») 

2.1510 

+00035 

503 - 617 

2.1517 2.1454 

2.1512 

-0.1 

2.1501 

0l2 

2.1499 

Ol 

86.1 

Canada 

(CS1 

Mexico (New Peso) 

5J871 

+00051 

838 - 903 

53910 5.3760 

. 

- 

- 

- 

- 

. 

- 

Mexico (New Peso) 

USA 

(S) 

13631 

+6.001 

628 - 633 

1.5854 1.5610 

1.5631 

0.0 

1.5628 

Ol 

1.5587 

03 

62.6 

USA 

(5) 

PbcUkVMdde 

r Eaot/Atrka 











PocMc/MUdto East/7 

Australia 

(AS) 

2.0571 

+00009 

660 - 581 

2.0810 24)507 

2.0592 

-12 

2 062 

-09 

2.0759 

-08 

- 

Austrafia 

(AS) 

Hong Kong 

(HK» 

12.0850 

+0.0077 

823 - 877 

12.1032 124)697 

12.076 

0.9 

124)717 

04 

120265 

05 

- 

Hong Kong 

(HKS) 

India 

(Rs) 

49.0407 

+00391 

289 - 524 

49.1030 48.6800 

. 

- 

- 

- 

- 

. 

- 

bxSa 

m 

Japan 

(V) 

153.781 

- 

697 - 824 

154.310 153.660 

1 53.331 

3.4 

1524)41 

3.7 

1474)21 

44) 

190.5 

Japan 

M 

Malaysia 

(MS) 

3.9967 

+0.0011 

953 - 981 

4.0034 3.9932 

- 

• 

- 

- 

- 

- 

- 

Malaysia 

(MS) 

New Zealand 

(NZS) 

2.5201 

+04X129 

186-215 

2S221 2.5186 

23248 

-22 

2-534 

-22 

25539 

-14) 

- 

New Zealand 

(NZS) 

PMSppinaa 

Peso) 

37.1225 

+00238 

258- 192 

37J600 36.7200 

- 

- 

- 

re 

- 

- 

- 

PWSppinas 

(Paso) 

Saud Arabia 

(SR) 

5.8828 

♦0004 

814 - $41 

SJ710 5.8552 

- 

. 

- 


- 

- 

- 

Saudi Arabia 

(SR) 

Singapore 

PS) 

2^905 

+0.0005 

B93 - 910 

22827 22873 

- 

- 

- 

- 

- 

. 

- 

Singapore 

CSS) 

3 Africa (Com.) 

(R) 

5.5282 

+0.002 

261 -302 

5.5368 5JS228 

- 

- 

- 

- 

- 

- 

- 

S Africa (Com.! 

1 <R) 

S Africa (Fin) 

(R) 

05367 

+0.0307 

200 - 534 

6.5554 05042 

- 

- 

- 

- 

- 

re 

- 

SAMcaJFia) 

W 

South Korea 

(Won) 

124339 

+084 

211 - 287 

1244.18 124084 

. 

- 

- 

- 

- 

. 

- 

South Korea 

(Won) 

TOwan 

(TS) 

409910 

+041182 

626 - 194 

414)422 409203 

- 

- 

- 

- 

- 

. 

- 

Taiwan 

(TS) 

Thafland 

(») 

39.0885 

- 

609 - 981 

39.1740 394)730 

- 

- 

- 

- 

- 

- 

- 

Thailand 

(BD 


109735 

+0005 

710 

' 760 

109800 10.9380 

320600 

-0007 

400 - 800 

324950 31.9950 

8.1054 

+00041 

014 - OOJ 

£.1085 

&Q660 

48063 

+0.0272 

036 - 129 

4 8176 

4.7644 

54)559 

+0.0034 

550 ■ 

568 

53590 

53380 

15589 

+0.0007 

586 • 591 

1.5596 

1X40 

2404)35 

+0225 

310 - 360 

240 360 230250 

1.5412 

-00039 

404 

- 419 

1.5487 

1X91 

1617.50 

+805 

700 ■ 

800 

1618.05 1606.45 

32.0600 

-0007 

400 - 800 

32.0950 314960 

1.7463 

-0.0004 

460 - 485 

1.7475 

1.7416 

63340 

+00060 

330 - 350 

6.8480 

58050 

159.180 

+0.06 

120 ■ 

200 

159.270 158.780 

130.155 

+016 

130 ' 

180 

IX. 180 129 730 

7.4688 

+00338 

C38 - 738 

7.4870 

7.41 84 

1.3207 

-0.0001 

203 - 210 

143230 

13157 

13631 

*0.001 

628 - 633 

1.5854 

13610 

1.221 1 

-00009 

208 - 214 

12246 

12205 

1.46738 

- 

- 

- 

* 

1.0002 

+0.0003 

001 - 002 

1.0002 

1.0000 

03590 

+0005 

580 - 600 

04600 

0.8560 

14)762 

+00014 

759 • 764 

14)784 

1.3735 

3.4465 

+0.001 

450 - 480 

3.4550 

3.4390 

IHca 





14)161 

-0.0003 

156 - 165 

1.3189 

13123 

7.7317 

. 

312 - 322 

7.7322 

7.7310 

31.3750 

+0.005 

725 - 775 

313775 313700 

98.7650 

+04)3 

400 - 900 

98.7900 984300 

2.5S70 

-00009 

565 - 575 

2.5585 

2-5565 

1.6123 

+ooooa 

118 - 129 

14129 

13100 

23.7500 

. 

000 - 000 

24 0000 23.5000 

27509 

+00002 

506 - 511 

3.7511 

3.7508 

1.4854 

-0.0006 

649 - 659 

1.4680 

14645 

35368 

-0001 

360 - 375 

3.5375 

05360 

4.1820 

+0.017 

720 - 920 

4.19X 

4.1600 

794.850 

-0.1 

800 - BOO 

795.000 794X0 

202250 

-0.0045 

110 - 390 

282390 26.1900 

220350 

+0.0105 

250 - 450 

25.0450 25.0250 


10966 

03 

109495 

0.9 

10352 

1.1 

1043 

3004 

0.7 

3139 

0.9 

31.75 

13 

1083 

6.1047 

a i 

6.1079 

-02 

81TI9 

-0.1 

1001 

a a rm 

0.7 

4.7998 

0.7 

4.7928 

03 

83-2 

5355 

02 

53505 

04 

53219 

03 

1083 

1.5581 

0.6 

13557 

08 

13389 

13 

107.1 


-13.5 

248385 

-13.4 

268385 

-12.0 

B83 

13415 

-03 

1.542 

-02 

13375 

03 


1821.45 

-23 

16265 

-2.7 

1664 

-23 

74.0 

32.04 

0.7 

31.99 

09 

31.75 

13 

1080 

1.7455 

03 

1.743 

07 

1.7255 

1.1 

1057 

6.8412 

-13 

6.853 

-1.1 

8381 

-04 

953 

159.735 

-43 

16038 

-43 

184.41 

-33 

954 

13038 

-2.1 

1X3 

-23 

132305 

-2.1 

803 

7.48 

-13 

73043 

-13 

7.8228 

-2.1 

813 

13185 

2.0 

1314 

2.0 

13889 

23 

1083 

13631 

0.0 

13828 

Ol 

13507 

03 

883 

13211 

ao 

13214 

-0.1 

12249 

-03 

"" 

13758 

02 

13755 

02 

13797 

-03 

82.7 

14475 

-03 

3.4493 

-03 

3.4567 

-as 

- 

- 

- 

- 

- 

- 

• 

981 

13169 

-07 

13187 

-08 

13314 

-13 

89.1 

7.7297 

03 

7.7285 

02 

7.7362 

-0.1 

- 

31.445 

-2.7 

3139 

-2.7 

- 

- 

— 

98.485 

3.4 

97365 

33 

943 

43 

161.1 

2354 

1.4 

23495 

12 

23775 

-OB 

- 

13133 

-07 

13157 

-03 

13247 

-03 

- 

3.7545 

-1.1 

3.7614 

-1.1 

3.7750 

-07 

_ 

1.4639 

13 

1.4604 

1.4 

14439 

13 



-53 

33844 

-54 

3.7493 

-63 


421 

-80 

43545 

-89 

4492 

-7.4 

- 

797.85 

-43 

80135 

-33 

81935 

-3.1 

- 

26245 

-03 

28285 

-03 

- 

re 

- 

253646 

-1.4 

251555 

-13 

2536 

-2.1 

- 


tSOR rslas ter Nov 23. BMWsr sprawls h Ora Poud Spot nble (taw arty As last Brea oadnol pTsceo. Fonord nam ora not dtecSy esiowd to Ora 
martM las an lirtart hr i iiauaa it mill irew Tnailnnlriaii i teitaam hi mu list nf nVigil llaw aiirajs imrr lOOHd ffliiw —I filg real in rn*i 
thb atd the Deter Spat MHes dwhsd *wn THE miflanERS CLOSNO SPOT IUTE& Some wfeae are reunded by ns F.T. 


CROSS RATES AND DERIVATIVES 


EXCHANGE CROSS RATES 

Nova BBr DKr ARr 


DM 


NKr 


TSDR rats for Now 23. {kUaltm 
but ws tnpted by cmra b u s t 


CS 


fei ns DoBor Soot not* mow rate B» ted n 
UK. keknd 1 ECU ora quotad si US craraney 4P. Magwi 


pbcas. Fsraart alas war 
nanMMfcesNovaa. I 


i dreedy ijjoeed to tha 
I 19BO- ICO 





- iuJ 

■* iV . 


(BFr) IN 

1004 

16.71 

4.081 

2024 

5045 

5448 

21-31 

4963 

405.9 

23.29 

4.119 

1.998 

4393 

2119 

307.9 

2354 


- 




(DKr) 5231 

10 

8772 

2563 

1.063 

2649 

2380 

11.19 

260.6 

213.1 

1223 

2.163 

1.048 

2254 

1.638 

161.7 

1341 




. 


(FFr) SOB8 

11.40 

10 

2310 

1211 

3020 

3-280 

12.79 

297.1 

2433 

13.94 

2466 

1.195 

2570 

1.067 

1643 

1.529 






(DM) 2037 

3317 

8430 

1 

0418 

1038 

1.120 

4.384 

102.1 

83.50 

4.791 

0947 

0411 

0.883 

0842 

6334 

0325 





botend 

m 4842 

0411 

8255 

2402 

1 

2493 

2691 

1053 

245.3 

200.6 

1131 

2036 

0906 

2121 

1.541 

1522 

1362 





Italy 

(U 1382 

0377 

0331 

0.098 

0040 

100. 

0108 

0.422 

9.838 

8048 

0482 

0082 

0.040 

0085 

0.062 

6.104 

0.051 



* 


Nathertanda 

0F=O 1838 

3497 

8087 

0893 

0372 

9283 

1 

3.914 

91.13 

7433 

4-276 

0.758 

0368 

0788 

0573 

56.54 

0.469 


- 




P«i) 4632 

8935 

7338 

2281 

0349 

2367 

2355 

10 

2329 

1904 

1093 

1.933 

0936 

2.014 

1.463 

1443 

1.199 

; 


. • *: 

; t 


(Es> 2015 

3337 

8388 

0979 

0408 

1016 

1-097 

4394 

100. 

81.79 

4.682 

0830 

0.402 

0885 

0628 

62.04 

0515 






(Pta) 2434 

4 692 

4.118 

1.198 

0499 

1243 

1.342 

5251 

1223 

100. 

5.737 

1815 

0492 

1.058 

0.768 

7586 

0.629 





Sweden 

(SKr) 4234 

0177 

7.173 

2087 

0869 

2168 

2338 

9.152 

213.1 

1743 

10 

1.76B 

0.857 

1843 

1339 

1322 

1.097 


- 




(SFr) 2438 

4324 

4 058 

1.180 

0401 

1225 

1322 

5.174 

120.5 

9835 

5854 

1 

0484 

1.042 

0757 

74.76 

0820 




; : i . 

UK 

O 50.11 

0.543 

8371 

2438 

1014 

2528 

2729 

tOB8 

248.7 

2034 

11.87 

2064 

1 

2.151 

1.563 

1543 

1280 

" 


• • .4 


Cmda 

(CS) 2330 

4437 

1B» 

1.132 

0471 

1175 

1-209 

4285 

1153 

94.58 

5.425 

0960 

0485 

1 

0.727 

71.73 

0395 



. - - 



to 5206 

B.108 

5350 

1.559 

0340 

1017 

1.740 

0-033 

159.1 

130.1 

7.466 

1321 

0040 

1378 

1 

98.72 

0819 


— * 

“ 



(V) 3248 

0185 

5426 

1379 

0657 

1638 

1.789 

6.922 

1612 

131.8 

7563 

1.338 

0648 

1.304 

1.013 

ioa 

0830 


■ 



Ecu 

3015 

7.455 

8340 

1303 

0782 

1975 

2132 

8344 

1943 

158.9 

9-117 

1.613 

0781 

1.680 

1321 

1205 

1 



4 ■ " 


Drateh Kroner. French Franc. Norwatfan Kroner. 

raid SareSeh Kronor per 10t Belgian ftme. Yen. En 

eudo. tba 

raid Pea 

na per lOO. 









"f 


-J;: 

■ D-MARK WIUBES BMW DM 125300 par DM 





■ JAPANESE VRN FUTURES QMS4) Yen 12.5 per Van IM 





**■ 

. i - 



Open Sett price 

Change 

High 

Low EsL voi 

Open M. 



Open 

Sewpnca 

Change 

High 

Low EsL vol 

Open nL 







-00023 

0.6437 a6411 

23.562 

96.838 

Dec 


13185 

1.0144 

•00043 

1.0195 1.0142 

15304 

74.449 



+ . .■ 




-00024 

0.6436 03423 

418 

8307 

Mar 


1.0273 

1.0231 

-08043 

13273 1.0230 

567 

10382 




..i y- 

Jun 

06448 06451 

-00023 

08448 08448 

17 

1337 

Jin 


13344 

1X042 

•0.0043 

13348 1.0340 

22 

842 



j - 

■.i L 

■ SWISS FRANC RjmiRKS OMM) SFr 125.000 per SFr 




■ STBBJNC FUTURES (1MM) £62500 per C 






EMS EUROPEAN CURRENCY UNIT RATES 

Nov 25 Ecu can. Rate Change M +/- from H Spread Dh». 

rates ogalnrtEcu on day can. rate v weakest bid. 


NodrertiiiMte 

2.19672 

214181 

-000091 

-250 

8.10 

. 

Beighan 

403123 

393407 

-00044 

-217 

6.74 

16 

Germany 

1.94964 

131152 

-030050 

-136 

631 

- 

Ireland 

0808628 

0796071 

+0001415 

-135 

5.08 

10 

France 

063883 

056823 

+OXX1212 

045 

299 

-4 

Denmmfc 

7.43679 

7.48841 

+0.00234 

080 

274 

-5 

Portugal 

198854 

195386 

+0064 

126 

216 

-8 

Spain 

164350 

150371 

+0043 

3.45 

080 

-24 

NON ERM MEMBERS 






Greece 

284.513 

294.715 

♦0096 

11.42 

-7.15 

- 

Italy 

1793.19 

198260 

♦5.64 

1036 

-8-43 

- 

UK 

0796749 

0784568 

-0001238 

-028 

3.74 

- 


EcucoMn) isMn sw by the Emocon Con jiSxJ on. Cterandes ora In iliueaxaiv "imps swaupSi 

changes are tor Ecu: spontera change dmoras a —dicmency. arat g ma anam tea 

nnobs tfi feapraadgmspercsraagstW— n ca bsw ran rhs acnnl tnwal and Ecu csmralraare 
lor n crarancv. and ffw mnUnun p a ra nad p a resraa gs dwteMn otihs nsranc^s mated rate Bern te 
Ecucamiias 

fU/wa Startng and laOan Urn SutpanM bon E»». Ar^atmerB cdtautated fty IhsHnancIri Tbnss. 


■ PWJUmwm SE £/>OPTK>l«a E31.250 (cents per pomd) 


. -5. 


vJ 


Dec 

07600 

07581 

-0.0026 

07808 

07570 

16.796 

55328 

Dec 

13640 

1 5624 

•00088 

1.5680 

1 5610 

11.733 

48.174 

Mar 

07626 

07815 

-0.0027 

07826 

07607 

618 

3317 

Mar 

13654 

13620 

-0.0070 

1.5654 

1.5600 

543 

2J98 

Jun 

07684 

0.7081 

-00027 

07667 

07860 

35 

306 

Jun 

* 

1.5612 

-00070 


1.5610 

65 

122 


Strike 

Pnce 

Dec 

— CALLS — 
Jan 

Feb 

Dec 

— PUTS ~ 
Jan 

Fab 

1325 

287 

430 

4.78 

Oil 

056 

1-06 

1350 

131 

236 

217 

060 

129 

1.91 

1375 

035 

136 

199 

1.83 

253 

211 

1300 

014 

062 

1.15 

275 

422 

4.73 

1325 

- 

023 

061 

6.09 

631 

6.68 

1350 

- 

0.06 

028 

830 

8 36 

8.75 


Prancaa day's voC Ctes NfA Pud K/A . Prav. day s open oc_ Cote N/A Pixs I 


is* 1 


UK INTEREST RATES 


LONDON MONEY RATES 

Nov 23 Over- 7 days 

night 


WORLD INTEREST RATES 


MONEY RATES 








NomriMr 29 

Over 

Ons 

Thrw 

Sbc 

One 

Lomb. 

Db. 

Hepo 


night 

tnontf) 

mtfis 

mths 

year 

Inter. 

rate 

ran 

Beiokan 

4% 

48 

54 

54 

6 

7.40 

4.50 

- 

week ago 

4ft 

48 

54 

5ft 

6ft 

7^0 

430 

— 

ftanca 

54 

54 

64 

5ft 

64 

530 

- 

6.76 

week ago 

54 


5% 

5ft 

6ft 

500 

- 

075 

Germany 

4.85 

435 

5.16 

525 

535 

830 

430 

435 

week ago 

433 

435 

215 

525 

5.60 

6.00 

430 

4.85 

Ireland 

54 

5 Vi 

6% 

64 

74 

- 

- 

825 

week ago 

54 

sw 

5H 

84 

74 

- 

— 

625 

My 

86 

e*> 

8* 

9ft 

104 

- 

730 

820 

week ago 

84 

8 (a 

8 % 

94 

0 ft 

— 

730 

020 

Nathartanda 

434 

534 

5.19 

534 

6.72 

re 

52S 

— 

weak ago 

404 

534 

524 

537 

6.78 

- 

525 

— 

Switzerland 

3H 

3% 

38 

44 

4ft 

8335 

330 

— 

water ago 

3 

3% 

3D 

44 

4ft 

6.625 

330 

- 

US 

Si 

54 

5ft 

6 ft 

6 ft 

- 

4.75 

- 

weak ago 

s» 

54 

5ft 

64 

6 ft 

- 

4.75 

- 

«Mpan 

2 M 

2V4 

24 

2 ft 

28 

- 

1.75 

- 

week ago 

24 

2 W 

24 

24 

28 

- 

1.75 

- 

■ SUBOA FT London 








VttNtunK ftxvig 

- 

Sft 

SB 

64 

08 

- 

- 

- 

weak ago 

- 

5% 

5Q 

64 

SB 

- 

- 

- 

US Dolor COB 

- 

5.47 

5.70 

6.05 

5.67 

_ 

- 

- 

week ago 

- 

547 

5.75 

009 

272 

- 

- 

- 

SM Linked Da 

- 

34k 

34 

3ft 

4 

era 

re 

— 

week ago 

- 

3% 

34 

3ft 

4 

- 

- 

- 

ecu LMad Da iriri 

•awe i irate Sh; 3 iram ss 

a nana: S 3 ; 1 —in 

Oft. f UBCW Irarabank fbdng 


nma are cOarad ms k> $ 1 Bn gaiid b ms mwkM by fcor 7stoe>-.v tsiks it 11 am each wwWng 
day. Ida bart g are; Pa rttara Tn*. Bank e I Tokyo, Barclays and Naum WocaiMter. 

Mdram an dimm lor tha drananc Money Fbaae. us S COs and SOR Unkad Dopeate P* 


EURO CURRENCY INTEREST RATES 

Nov 25 Short 7 days One Three She One 

term notice monm months months year 


Belgian Franc 

4J1 

-4ti 

413 

-4)J 

453 

451 

5»s 

- 5 

5V 

-54 

6- 

S4 

□and* Krona 

S\ 

-5*2 

s* 

-sk 


5k 

6*4 

- 6 

64' 

■84 

74 

- 7 

IMUarir 

Sir 

-4H 

5 - 

4% 

5. 

*7* 

5*- 

5* 

5*4 

-54 

*& 

-54 

Dutch GtAder 

5- 

4 h 

$.'« 

-453 

5i'i 

4J3 

5k . 

54 

54 

■54 

512 

-54 

French Franc 

5^ 

- S*4 

Bi 

-54 

54 


54- 

54 

54 

54 

6iV 

-84 

Pcnugueee Esc. 

9- 

851 

9 - 

851 

>h 

ah 

10>1 ■ 

■9% 

104 ■ 

■10ft 

104 

■ io4 

Spanish Paaata 

7, , « 

- 7 & 

V. 

- 7,1 

74 

74 

74- 

74 

84 

■84 

94 

-812 

Stertng 

5*4 

-s 

5L 

-5^ 

5S, 

54 

8*a 

- 8 

64 

-O'. 

74 

-74 

Sarto Franc 

3^ 

-3k 

3*1 

- 3h 

3H 

3^ 

3H- 

3ti 

44 

44 

44 

-44 

Can. Dollar 

54 

■5>a 

s.\ 

■sh 

5* 

Sk 

54- 

54 

64- 

•64 

74 

-74 

US Dolar 

5^2 

■ 5*1 

« 

-BA 

5*8 

sh 

512- 

551 

64 • 

-84 

sy 

-Bff 

Ratan Lira 

9- 

7*2 

8A 

-84 

Bi* 

a& 

84- 

64 

94- 

■94 

104 

-an 

Yen 

2*4 

-2A 

Si 

-2h 

24 

2*4 

24- 

24 

24- 

u 

2fl 

-2SI 

AehnSSing 

2^ 

- 2h 

4 - 

3% 

4*a 

- 4 

44- 

44 

44 

<4 

44 

-44 

Short term alee raa cap 

lor Ifw 

US Dearaenc 

i Yon. i 

Nhere: 

Me days’ notice. 





I PBOR nmns (MAhF) Paris Interbank offered rate 



Open 

Sett price 

Change 

Mgh 

Law 

EsL voi 

Open btf. 

Dec 

9438 

9428 

-031 

94.40 

9427 

6.170 

38369 

Mar 

94.14 

94.12 

-033 

94.17 

94.11 

12236 

SOS54 

Jut 

9173 

93.72 

-0.02 

9X77 

9171 

3.718 

3X778 

Sep 

9339 

9327 

-002 

9X42 

9327 

2325 

21329 

■ im 

B MONTH nmODOIXAR gJFFET Sim points of 100% 




Open 

Sett pnce 

Change 

Hgh 

Low 

EsL voi 

Open M. 

Dec 


8334 

-am 



0 

2827 

Mar 

9339 

9329 

aoi 

9X39 

9X39 

2 

1454 

•fcai 

9234 

9234 

. 

3234 

92.84 

2 

389 

Sap 


92.45 

- 



0 

177 

■ TMUcX MOMTH EUROMARX FUTURES (UFFET DMIm points oi 100% 



Open 

Salt price 

Change 

fV* 

Low 

EsL vof 

Open kit 

Dec 

9434 

9433 

. 

94.84 

9432 

7731 

127336 

Mar 

94.75 

9*73 

+0-01 

94.75 

94.70 

19545 

179993 

Jun 

94.44 

94.43 

-KJ32 

94.45 

9428 

15389 

130184 

Sep 

9438 

9439 

+033 

94.11 

94.03 

9939 

B303S 

■ THR 

U MONTH EUROURA NTT-RATS FVTUnES fJFFE) LIOODm points of 100% 


Open 

Stel pries 

Change 

H*h 

LOW 

EsL vol 

Open tot 

Dbg 

91.16 

9091 

023 

91.17 

9091 

5988 

29813 

Mar 

9044 

9021 

023 

9047 

9020 

6445 

35180 

Jun 

8932 

89.67 

-022 

8933 

80.66 

1648 

18318 

Sop 

89.49 

8920 

018 

8051 

8826 

795 

215912 

■ THR 

H MONTH 

■unoswn 

B HUMIC FUTURBS (UFFE) SFrlm points of 100% 


Open 

Sett price 

Change 

Hgh 

Low 

EsL vol 

Open bit 

Dac 

9832 

9539 

031 

9002 

9536 

2048 

17289 

Mar 

9973 

95.75 

001 

95.78 

95.72 

3215 

19413 

Jun 

96.45 

9&4S 

- 

96.47 

95.44 

683 

6379 

Sap 

95.12 

95.12 

+0-01 

95.13 

95.12 

125 

3075 


■ TWES MOUTH BCU FVTURBS (URFQ Eculm points of 100W 



Open 

Sett price 

Change 

Wtfi 

Low 

EM. voi 

Open tat 

Dec 

9*11 

94.09 

003 

94.11 

9438 

697 

7725 

Mar 

9X84 

9332 

002 

8X84 

9X82 

802 

7962 

Jun 

9328 

9324 

OOT 

9X38 

9X23 

162 

4051 

Sep 

-imum 

9238 9238 

traded on APT 

“ 

as m 

9235 

123 

2646 


I QMM) Sim points of 100% 



Open 

Sett price 

Change 

wat» 

Low 

EsL vol 

Open bit 

OK 

8X88 

SI 04 

- 

S33S 

6X03 

101224 

280975 

Mar 

9329 

9X40 

- 

9X40 

9327 

196046 

487385 

Jin 

a?i)a 

WM 

001 

9235 

6231 

118354 

321.191 

N USTHMAWHr ■ 

Ki. FUTURBS (MM) Sim per 100% 



Ok 

9439 

9438 

032 

9439 

94.58 

2374 

12,684 

Mar 

9435 

94.04 

-031 

9435 

9433 

3315 

11280 

Jin 

9X48 

9X49 

+031 

9X49 

6X48 

119 

1391 


At Open feaanM age. are lor pmtoua day 


LOPTKMK QJFFE) DMIm poHs Of100% 


0476 
0600 
BESS 
Era. vet i 


Dec 
0.10 
002 002 

0 0.01 


■— CALLS - 
Jan Fab 

008 an 

004 

0.01 


PUTS 


Mar 

aw 

005 

aoi 


ra. Crib Z71B Pub 6821. Previous day's opr 
SWISS FRANC 0W110HS {UFF^ SFr 


Doc Jan Feb Mar 

002 011 013 018 

019 029 031 032 

042 053 053 053 

m K. Cate 224066 ftB 200529 
im points oT 100% 


(LIFFE) CSOOJOO poims o< 100% 


One 


Uvea 


notice me»n*h reonthe 


Six 

months 


Ono 


Interbank Sterling 
Strafing CDs 
Treasury BHfl 
Bank BOs 


4il -4 51,-4* 5,1.5,'. 6ja-8 6 A - 6A 7*4 -7** 
Sb'Si, 5»-5^ 8,^-fiA 7»»-7 

SA-5H Sjj-Sji - 

to* BOi - - 5H - SB SB - 8% - 6^ - 

S3«S«1tydaps. 4H-4fl 5L-4B 55,-SA « - 8,^-6* 74-7 }c 

Discount Mattel deps 4\ - 4 5 - 4% 

UK dartng bank ben lendfeg rate 5* per cent iron September iz. 1994 

Up to 1 1-3 33 6-9 9-12 

month month months mortha mortha 



Open 

Sen price 

Change 

Wgh 

Low 

EsL voi 

Open nt 

Dec 

93.76 

93.71 

-036 

9176 

9X70 

13419 

128142 

Mar 

9X06 

92.99 

008 

9X08 

82.96 

19300 

94339 

Jin 

92.40 

9229 

010 

92.48 

92.36 

5049 

55963 

Sap 

91.96 

9132 

-0 09 

91.98 

91.91 

2141 

64222 


Tladad an APT. M Open mnw flgs are Mr pre vta ua day. 


(LIFFE) £500,000 points of 100% 


Cats ot Tan dtp. (E10UW* 


lij 


3V 


31. 


3>2 


^ rkwoct 31. 

A^ t a^ r^ tf dbCTurt 8gPC- Qec 2S. IK^Seheraea 8 la 733pc. Ib te ra ii ui rale for 
i»® SSSTSKiMtenre « • V SMBpc. num* Horae ^ Opclnm Nov 

viaS* 


Strike 

Price 

Deo 

- CALLS - 
Mar 

Jun 

Dec 

— PUTS — 

Mar Jm 

8360 

026 

0.08 

006 

005 

059 1.19 

9375 

aio 

003 

005 

014 

079 1.41 

9400 

002 

0.01 

0.03 

021 

1.02 134 

Eat VOL latri. cuts 4125 Ml 6714. Prartom do/a open ML. Cato 3045S Pin 24085B 


BASE LENDING RATES 


AJamS Company — 5.75 

Allied Trust Bank —5.75 

AJBBank 5.75 

•Henry Arabachar S75 

Bank of Banda 5.75 

Banco BSmq Vtzcay&_ 5.75 

Banket Cyprus 5.75 

Barkoftetand 5.75 

Bar* oflndb 575 

Bank cl Scotland 5.75 

Bareteys Bar* 5.75 

BrtBkof MdEad — 575 
•Bro-n Shfctoy & Cb Ltd 5.75 
CL Bart Nedertnd ... 5.75 

CBtear* NA 5.75 

Qydosdafe Bar* 5.75 

The Co-operteve Bar*. 575 

Couas S Co 5.75 

Credt LyotmoD 575 

Cyprus Popdar Bank _575 


% 

Duncan Layvde — 575 

Exater Bank Limaed _ 575 
Fnancai Gen Bank _ S3 
•RotMrt Hemng & Co _ 575 

Girobank 575 

■GukvreGS kfcrfm 575 

Kadto Bar* AG Zurich . 5.75 

Wtamtyos Bank 575 

BedtaMe 4 Gen tnv Bk. 575 

•MSamuBL — 575 

GHoareSCo 575 

Hongkong 8 Shanghai. 5.75 
Jiaen Hodge Bar* — 575 
MjDOpold JtBBph 8 Sons 575 

Lloyds Bar* 575 

Meghrej Bar* Ltd 575 

Mttend Bar* 575 

■Mourt Banking 6 

NraWeSmkrsw 575 

iBromors 575 


* RtBdaitfteG uai a naM 
Corporakxi Umted to no 
bngBrautarimlaB 
a batting MUteL B 

Royal BkotScotted- 575 

•Sinbh & WDnan Sacs . 575 

TS8 575 

•Urfled Bkaf Kuwe*— 575 
UnayTru3BBJ*Pfc_ 575 

m*ni That 575 

Wtiteau m y Lakftev — 575 
Yortafwo Bar* 575 

• Mranberaot London 
kwestmere Bartong 
Aaaodaton 


Strike 

Price 

Doc 

- CALLS - 
Mar 

Jun 

Dec 

— PUTO - 
Mar 

Jin 

9575 

025 

016 

012 

031 

016 

042 

9600 

006 

007 

0.05 

0.07 

032 

OBO 

0625 

031 

033 

0.02 

037 

033 

032 

Eat voL Ml* Crib 0 F\n* 0. Piwaua tttt/e open M- Cato 2813 Pm 1815 



t S 

171389 - 171 JR UBJBO - NBJBO 

2742.00 - 274500 174500 - 17SL00 
0.4873 • 04085 02980 - 0289/ 

372728 • 373082 238500 - 238850 
505587 - S0SS.75 3Z3L00 - 323730 
57343 - 5749 34715 - 34735 


FT QUDE to WORLD CUHRENCE8 

The FT ante jo World Currencies 
table can be (mind on the Co mp oni es 
O Finance page in Monday's paper. 


UA£ 


l ’- . ■ : l- 




• 


: ■<£ 


Where you’ll hear the words profitability 
and tax in the same sentence. 


s!l Ernst & Young 

We help you manage the impact of tax 
upon your bottom line. 

Call Ernst & Young on 071 9J1 4 134 . 


''.A 

' :*■> .v 

- ;^ 'r . 

- 


/UdwwrJ Ay The In+litulc of Chartered Accountant* in England and Water to carry on inwrtmrat hmo imeoo. 








COMMODITIES AND AGRICULTURE 


WEEK IN THE MARKETS 

Metals and 
coffee in 
retreat 

Loudon commodity markets 
languished yesterday as New 
York traders took a second day 
off to digest their Thanksgiv- 
ing turkeys. And none was 
more lan gu id than aluminium. 

After pushing to a fresh four- 
year high of $2,015 a tonne for 
the three months defiviery posi- 
tion on Tuesday the London 
Metal Exchange al uminium 
contract succumbed to the 
downward “correction'’ that 
most market analysts thought 
inevitable following the 15 per 
cent run-up of the past month. 

The price quickly back- 
tracked below the $2^)00 mark 
and continued downwards as 
relatively modest selling met 
little buying resistance. The 
fall accelerated yesterday 
morning as speculative liquida- 
tion breached successive chart 
support points and by the close 


(As at Ttavodny'a ctooa) 


MumMum 

AfamMum Key 
Copper 


-18400 to 1272.1 50 
-20 to 26,700 
-1.850 10 320075 

STS to3S&a» 

vree to tst.284 

-3.723 to 1408770 
-145 to 26*00 


three months metal was trad- 
ing at $1,887.50 a tonne, $1250 
off the low but $81 down on the 
day. Traders noted that the 
nearby supply tightness that 
had narrowed the cash dis- 
count against three months 
delivery to just $1 a tonne at 
Monday's close had eased 
somewhat Yesterday the dis- 
count ended at $15. 

Supply tightness was still 
very evident in the copper mar- 
ket, where the cash price 
remained at a substantial pre- 
mium to the three months 
position. And with stocks of 
copper in LME warehouses 
continuing to fall prices 
bounced qaite strongly after a 
mid-week shake-out The three 
months quotation, which 
dipped to $2,753 a tonne at one 
stage on Wednesday, closed 
yesterday at &827.50 a tonne, 

WEEKLY PRICE CHANCES 


Gold par boy az. 

Silver par troy az 
AiunMun 99.7% (cash) 
Coppor Grade A (cash) 
Lead (cash) 

Metal (cash) 

Zinc SHG (cash) 

TVi (cash) 

Cocoa Futures Mar 
CoBoa Futirea Jan 
Sugar (LDP Raw) 

Barley Futures Mar 
Wheal Futuna Mar 
Cotton Outlook A Index 
Wool (B4a Super) 

01 (Biant Blend) 


unchanged on the week. 

Nickel was the only market 
to resist yesterday's early 
weakness, with commission 
house baying enabling It to 
ignore news of a sizeable rise 
in LME stocks. An advance to 
$7310 a tonne for three months 
delivery proved nnsupportable. 
J however, and the price ended 
r at $7,74530, $3 an the day and 
r $23 an the week. 

At the London Commodity 
Exchange the robusta coffee 
jwartont aririnri substantially to 
last week's heavy fell. 

Continued liquidation of long 
' positions and an absence of 
J roaster baying combined to 
push the January futures posi- 
! turn down by over $200 a tonne 
on Monday. Tuesday saw a ten- 
, tative rally but this was 
snuffed out the following day 
after Brazil revealed that is 
coffee stocks stood at about 
15m bags (60kg each), suhstan- 
’ tially higher than traders had 
thought The ensuing fell took 
the price to $2,870 a tonne. 
$1360 below the 8%-year peak 
reached on September 21. when 
■ a prolonged drought in Brasil- 
ian growing areas was adding 
to crop worries caused by dam- 
aging frosts in June and July. 
The price bounced to $2,987 a 
tonne but that was still $296 
down on the week. 

“There is a significant battle 
between producers and con- 
sumers over which way prices 
go,” commented Mr Lawrence 
Eagles, analyst at GNI. the 
, London trade house. “The mar- 
ket is awash with coffee now, 
but it will be tight again next 
year.” 

In the meantime technical 
analysts are concentrating on 
the market's downside poten- 
tial. "It does have a bit of a 
yawning nhasm below it now,” 
said Susan Rlgg, of Chart Ana- 
lysts, after Wednesday’s 
plunge. And Elli Gifford, of 
Investment Research of Cam- 
bridge, warned that, given the 
pace of the decline in recent 
days, it seemed “unlikely” that 
the coffee market would rally 
to reverse the downtrend. 

Chart patterns suggest that 
unless the January futures 
price can clamber back above 
$3300 pretty quickly a fell to 
$2,600 could be an the cards. 

Richard Mooney 

Chang# Year 1S9* 


BASE METALS 

LONDON METAL EXCHANGE 

(Prices tom Amalgamated Metal Tisftng) 

■ Auanauw, 90L7 PURITY {$ par tonne) 


LONDON SPOT MARKETS 

m CRUDE OIL FOB (per oareeWan) *or- 



Ceah 

3 irrihe 

Ctoee 

1872-3 

1887-8 

Previous 

19*3-3 

19*8-8 

Mghftow 

1883/1882 

194571875 

AM Official 

1882-3 

189&5-&5 

Kerb ctoao 


1803-4 

Open toL 

255.451 


Total deJy turnover 

58601 



Dutta S1S.04-e.07Z 40.03 

Brant Btoid (dated) S18.9&2.99 -0028 

Brent Blend (Janj $17.18-7.19 40025 

W.T.I. (lpm ast) 

■ OL PRODUCTS NWEpromp* dahwy CF 9ome) 


■ ALUMINIUM AHOY ($ par tonne) 

184(M5 1873-5 

ptmiciO 1865-70 1897-89 

190071870 

AM OfflcM 1835-40 1870-75 

Kerb doaa 187S5 

Open tot 3.004 

Total deriy tunow 484 


Pramtan assort 
Gas OK 
Heavy Fuel Oil 
ttvftita 
Jet tool 
Oeset 


$173-175 
SI 53-155 
$ 100-101 
SI 79-183 
$172-175 
$159-180 


Ooee 

688-9 

684-5 

Previous 

672.5-36 

890-91 

HgMow 


692/683 

AM OftWaJ 

887-76 

685-6 

Ksb dose 


683-4 

Open bit 

44.631 


Total daiy turnover 

3^50 


m MCKH-fS par tome} 


Close 

7820-30 

77*5-6 

Previous 

7815-26 

7740-45 

H&Vte* 

7620 

781<V7730 

AM Official 

7B20-6 

7750-56 

Kartj dose 


7740-50 

Open inL 

65.896 


Total daly benover 

10676 


■ UN (5 par torma( 



(*VWR 

6126-35 

6205-10 

Previous 

6130-40 

6210-20 

hSflWtow 


0255/6190 

AM Official 

6110-20 

6193-5 

Kerb ckraa 


6205-15 

Open InL 

23640 


Total dafly turnover 

2^318 


■ ZMC, apodal high grade (S per tonne) 


CJ ore 1142.5-8.5 1189-70 

PreutoUB 1155-43 1181-2 

Hlgh/tow 11482/1147 118471168 

AM Official 1 1472-8 2 1 1 74-5 

Kerb dose 1168-9 

Open tot 110237 

Total dotty turnover 9341 

■ COPPER; grade A ($ per tome) 

Close 2857-8 2827-8 


Awtrtn Apia. W, London pi 1) 358 S7SC 

■ OTHER 

Gold (per troy or)* S384.95 4035 

58ver (per troy az# 517.5c +1.0 

Platlnun (per troy OcJ 541030 

Pattadum (per toiy az.) $154.15 40.35 

Copper (US prod) 135.0c 

Load (IS prod) 40. 75c 

Tto (Kurfa Lumpu) 16-flOr +0.11 

Tin (New York) N/A 

Cattle pw vtaphOt 11929p +021* 

Sheep (five welQtoJT* 107.16p +137* 

Pigs (kve weight) 62Q2p 44.40" 

Lon. day sugar taw) $357.70 +22 

Lon. day sugar fwte) 54173 42.0 

Tale & Lyle export £343.0 +1.0 

Bariey (Eng. feed) Unq. 

Matte (US No3 YeflOW) Cl 32.0V 

Wheat (US Dertt North) C166.CN 

Rubber (Dec)? 90.00p +0.75 

Rubber (Jan* UftSOp *025 

R^ber (KL RSS Nol JuQ 349.0m «&0 

Coconut 03 (PhQ§ $715.0q +62 

Palm CM priatey.)§ S735.0u +15.0 

Copra (PhQ§ S464.Org +102 

Soyabeans (US) £187.0 

Cotton Outtoofc'A' index TgxiOc 

Woottopa (64s Sixiet) 460p 

E pm tome ui+ooo oUwnatos staasd p pancaAe o can IWti. 
r o mM e m IManbn cMMe f JnvMar. v NoWDao. a 
Deo. * Jan. q Dac/Jan f London n i yri cfe 9 OF Ftotar- 
Own. 4 BtWv rrmfcaa ctoao. 4 Swap JJw wi^rt priced * 
Change on week O Prtoaa n b Drerwtoua day. 

ENERGY 

■ CRUDE POL IPE (S/barrtri) 

Sen Open 

price change tflgti lew M Vol 

Jm 17.16 40.01 1725 17.14 S22& 12757 

Fab 17.01 4<L03 17iJ7 1697 37,277 2.484 

Mar 18.82 +003 1664 1606 15.640 661 

Apr 1BJJ4 +026 1567 1662 6^27 66 

Bn 1661 +004 1665 1677 4600 248 


GRAINS AND OIL SEEDS 

■ WHEAT LCE (E per tonne} 

W IW tea 

price ampa M0 tar tat W 
Jjb 10520 -030 10500 10560 1674 «1 

tar 107.10 -OS 10725 10595 1.B59 64 

tar 108.10 -035 10020 10695 1688 22 

Jrf 11060 -030 11(L» 11055 130 4 

Sip 9475 -040 9600 9560 84 5 

Hn 8565 -(MS 9600 9565 788 14 

-Uri 5073 (68 

■ BARLEY LCE g ptr tonne} 

Jan 10250 -025 - 480 

tar 10425 -050 - - 134 

tar 10585 ... 44 - 

Sap 3350 -425 30 

tar 9560 -025 ■ • B1 - 

Total 748 

■ POTATOES LCE E/toma) 

taw 2713 

tar 2SU tU taD »ZJ) 1282 2» 

Bay 3056 +126 - - 2 - 

Jta 2500 

Tata 219 


LONDON TRADED OPTIONS 

S b— price * tonne — C«*8 — — Ptri« — 


■ AUUMKUH 

(9S-7*)LhE W> 

1800 1 « 

ISO — 114 

1000.. — 88 

■ COPPBt 

fGrttto A) LME Fta 

•pm 161 

2800 _ — 1® 

2850 107 

■ COffBELCE Jttn 

3000- «S 

3080 105 

3100 « 

■ COCOALCE Mar 

950 65 

875 « 

1000 1 40 

■ BRENT CRUDE IPS Jan 

1500 ‘ 

1650 - 

1700 - 


f*j May Feb May 
143 187 . 48 W- 

114 14 1 » «1 

88 118 93 138 


Hay Feb May 
120 68 198 

100 » 185 

83 113 2M 

-Mb- At' Mv 

2D4 137 258 

187 187 2S1 
171 200 326 
May Mar Uqr 

ai . aa <o 

88 » 52 

58 » 86 

Apr Jen Apr 
- 5 


MEAT AND. UVECTOGKr V^: 

. IMG c*mjE 

■ , i 

BH 87675 -0678 68X5 67J00 1ft532 W3J 

tab 67673 -0800 88275 87^0 26y577 7*B\ 

S BB57E -02S0 886ZS 68*0 WIN SJS* 

^ n<a 41200 64775 64600- V® "+W- 

Z a 82625 -0.125 83.180 8Z350 1 2671 » 

S 63673 -0225 63708 83300 't* ' 237 

OK 31630 -*0200 ttOfe 3U» 1 "*<£ 

■S 84550 4O2»3«™«20 W ‘W», 
i— 35625 4425038678 88600 WW^ 

Z 40980 -0050 4L100 40600 MBS . ' W 

5 SJS AttS 41600 J2 , - 

Oct +0650 39629 3860) 0S2 It 


■ PORK 

m 3 


, t r -\u* 

M J.-'-i 


■ HtBOKT ESHTEX) LCE SIQAndSX poW) 


tat 

1910 

+2 

- 

- 

3*0 

- 

Oac 

1929 

+4 

1933 

IBS 

384 

2 

Jae 

1836 

+6 

1835 

1884 

1,177 

43 

A* 

1732 

-1 

T73S 

1729 

1,104 

31 

JU 

1305 

-5 

- 

- 

148 

- 

Oot 

Tata 

Bfl 

1650 

Owe 

1906 

-17 

Ret 

1885 



17 

$075 

K 


X- np I CME BOOOOfcer a M &j-V--: 

30.100 +0430 36600 3SJ50 7657 .• 16® " 
$$250 +0425 38280 38600 1^78 - 
37615 +0425 38200 37600 - «2 ; « 
386M +0400.38000 38200 SOB JO. ■ 
30600 +0.100 $7400 38600 ' 108 9. . 

cum • - . • -1 .. 

.-WB0 ,23$|- 


- 


£ ~ 2 


PRECIOUS METALS 

B LONDON BULLION MARKET 
(Prices euppBed by N M R oOw cNM) 

Odd (Troy oz.) $ price 


(tapper prices wre under priwn h wwtam 
Europe because of toe drew of buym in 
Sta US, reports Man Products, tocta reported 
a fairer local matte!, howmer. In. the. denies 
market demand from tata md Stogap ore 
encoumged nportam from Madagascar to 
tocratatt prices. Tba Madgagaaor aoft now in 

to0 string, ie aaqieotod to be smlK. tagByes 
a raoutt of tart year's nensdo. Nubnege and 
mrea prices nmatood ganentty stable. 


Softs continued 

■ NQ7 mOBUM RAW SUGAR LCE (centaflMi 


Opening 
Morning ftx 

Afternoon ftx 38465 248.0Z1 

Day's High 38460-38520 

Day’s Low 384^0-384.70 

Pwoa does 88460-384.70 

Looo Lite Mean Gold Leodfeag Rates (VS USS) 

1 month 466 B months .5 

2 months 569 12 months 5 


$ price 
88460-385.10 
38460-38460 


tf^VJow 2857 2852/2820 

AM Official 2866-7 2826-7 

KaTO ctaae 2830-1 

/I Mfl OM 

Jtn 16.79 +007 

Tota 

■ QAS OIL FE B/tame) 

- $171 

171^52 16201 

3 marram — — 

8Bver Pfat 

Spat 

_5l7B 

p/troy ccl 
33O0O 

9K JC 

US CIS aqutv. 
51726 
524.75 

opon viL ciwrfoo 

Total Catty turnover 3831} 

Base metals continued 

K LME AM Official S/S rate: 1.5636 

LME ClaakiJ 0$ rata 1.5847 

Dae 

Jan 

Fro 

Mar 

Apr 

16125 

154.75 

18825 

15760 

15528 

• 152.75 

- 15525 

- 158.75 
+02S 15700 
+026 15525 

15150 31605 
15460 24622 

155.75 1SJM 
15625 10.174 
15525 3657 

4232 

2J45 

580 

300 

5 

a momns 

6 months 

1 year 

Gold Cains 
Knigenand 

34090 
35375 
$ pries 
388-389 

532 80 
SI-85 

2 each. 
247-250 

Spat 15633 3 OAK 15B3I find* 15BZ0 9 rntfiz 15807 

Mar 

Tata 

15*50 


- 944 

9L410 

r/m 

Maple Leaf 

New Sovereign 

39640-39790 

385-388 

252-255 


Mr 

1479 

r - 90 

tar 

1478 

- - 980 

j* 

TtaM 

1453 

-091 - - 450 

MOB 

K WWTE SUGAR LCE (S/tom* 

Star 

40090 

+2.10 41090 40850 11.174 583 

tar 

40290 

+U40 40110 40000 • <488 504 

MB 

38220 

+030 393.10 88650 $333 496 

act 

36220 

-020 38200 38030. 1577 35 

Ok 

38000 

-050 - - TOO - 

Tntrf 

35950 

-060 - - 190 

KM UM 


SOFTS , : ->7.3:; 

’ ■ COCOA ICE (E/ldnn^ - ■_ 

^a (Mgi HW tar V.'^- 
| W 973 +5 873 BBS 15,78t ~ OK ; 

flr 887 *2 887 - 884 422Z4-T2A 

■V m -- - :«83 MB 140GB 85 

m m -t 1002 .'888 MB ■ 62 

Sm 1010+2 TOTS 1000 13604 1« 

in 102B ' +4 1D2S .1025 .1020*' . * 

Tew mjmaam. 

■ UJPILU UCE tSftomij '■ 

Mr 2930 -15 2064 2954 111 ' 8 

JBi 2888 -t 3015 2SOO mSSr .WZ : 

tar 2948 -2 2870 2945 9225 288 

My -2918 -8 2942 2915 46*0 117' 

Jri 2003 4 2928 .2905 1460 . W 

tap 2B81 +1 2900 2085 2481 21 

IBM . - 2M«1.*8 


INDICES 

■ WEUTBW gm K 18W31-100I ~ . _ 

Nov m NwM SHrtiago year ago 
21426 21386 .. - 21046 - 1BZ76 

■ CRB Fbtvaa Bmit 1887=d0n V 


p‘. ' ' - --•? 


.■Avj-f 


v £5 - + • ’»*’ 


Nov 24 - Mav 23' ’(DOriA ago . year ago- 

- -...•.■ 23063 ; -23466 - -- - *•’- 


prices 

on week 

■go 

Mgh 

Low 

$38485 

+025 

son no 

$39050 

$369^0 

33O60p 

+0.10 

31O50p 

384G0p 

«xi anp 

$18725 

-93^ 

$1038.0 

$19600 

$1107^0 

$28575 

-216 

$18305 

$29105 

$1731^0 

$8885 

-9£ 

$4105 

$875.0 

$4200 

57625.0 

+25 

$4877.5 

$78200 

$62100 

S1143J0 

-33 

$9246 

$11880 

$9006 

ssiaao 

-7TLQ 

$46220 

$827071 

$47300 

£987 

+3 

£10500 

£1124 

E85S 

$2983 

-295 

$12660 

$4091 

$1175 

$357.7 

+192 

$2804 

$357.7 

S252.3 

£10426 

-0.75 

£106.75 

£105.50 

£92.65 

£107 >10 

+200 

£iaiJ5 

£1172» 

ES740 

7950c 

+090 

9620c 

87.10C 

82.46c 

46Qp 

$17.17Gz 

+0445 

344p 

$1446 

48&p 

$1061 

342 p 

$13-16 


WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONDS 

Red Day's Week Month 

Coupon PBe Wee change Yield ago ego 

Australia 9.000 08/04 91.4400 - 10.41 1069 1048 

Bdgkxn 7.750 11VQ4 96.7400 +0670 864 a 40 0.46 


Gemwiiy Bwd 
Italy 


Nelheriands 

Spain 

UKGBa 


US Treasury - 


London ckahg. Haw York 
t dm Ht tdu wer nAttu 0x012. 
Pitas UtL UK kl SMx ottiara ki da* 

OS INTEREST RATES 

4fm(25Nor) 


OOOO 

08904 

91.4400 

- 

10.41 

1029 

10-48 

7.750 

1004 

90.7400 

+0-070 

824 

8.40 

8.46 

0600 

0004 

84.0500 

*0.150 

9.04 

B.15 

ft 06 

7.000 

12/04 

80.5700 

+0200 

839 

822 

826 

OOOO 

0098 

10241800 

+0.060 

721 

7.47 

725 

6.750 

1004 

92.1500 

+0.180 

732 

6.19 

827 

7000 

11/04 

101.3300 

+0.020 

721 

726 

728 

1500 

08704 

81J500 

-a 070 

11.74T 

11.66 

1126 

4jBP 

06/99 

103.4510 

-0.060 

3.91 

4.06 

4.12 

4100 

12/03 

96-5230 

-0.180 

4_6S 

4.74 

474 

7250 

10/04 

99.0200 

+0.170 

729 

721 

7.58 

OOOO 

05/04 

roramn 

-0.060 

11.06 

1122 

11.14 

OOOO 

08/99 

91-06 

-W32 

829 

636 

828 

0750 

11AM 

88-25 

-4732 

8.43 

824 

&B7 

OOOO 

1006 

104-19 

-5/32 

8.43 

624 

824 

7075 

11AM 

100-14 

+4AJ2 

721 

8.02 

721 

7000 

11724 

94-30 

+10/32 

724 

B.14 

727 

6000 

IMAM 

85.1900 

+0240 

823 

820 

627 


BOND FUTURES AND OPTIONS 
France 

■ NOTIONAL FRENCH BOND FUTURES (MA7TF) 


Open 

Sett price 

Change 

Mgh 

Low 

Eat VOL 

Open tot 

112 

022 

126 

11228 

11252 

+026 

11268 

11226 

121,485 

118236 

113 

Q+fl; 

. 066 

111.78 

111.70 

+0.03 

11124 

111A8 

7211 

38,113 

114 

0.13 

021 

11026 

11020 

+026 

11028 

11024 

333 

3248 

at vol tota CM 28204 

naafcKi 


pin* 

Mar ' Jin .. 
032 062 

OS) .. 1-14 

163 '* 160 


1 <tata open feta-Cttte 103.180 Pula W64B . 


'^3£- 

- | n— - 
1 « — - 

I 

. 1 wa- 

“ : 


Ge r man y 

■ NOTIONAL GStallAN BUND WJTURE8 (UFFg* DM2S0J0Q IQOttte of 100M 

Open Sett price Change Hgh Low EaL vd Opwi tot 
Dec 6160 81M +016 6761 67 .13 776702 740820 

Mar 9060 90.72 +1124 9060 9040 17788 64142 

Jui 8965 8967 +024 8965 8965 1 1 

B BUND HJTURE8 OPTIONS ffJFFD DM2S06Q0 pbtota at 10098 


Strike 

Price 

Jen 

Feb 

CALLS — 
Mar 

Jui 

Jen 

Fob 

PUTS — 
Mar 

9000 

0.78 

1.10 

128 

123 

026 

028 

126 

9100 

022 

025 

123 

1-10 

020 

1.13 

121 

9150 

023 

024 

021 

021 

1.11 

•122 

129 


*Mr 

■ NOnOMAL ITALIAN GOVT. BOND^TF) FUTURES 

QJFFg* Um 200m 100B» of 100K ' . 

Open Sett prioe Change Hgh iaw E*. vol DpenTnt. 
Deo 10166 10078 -022 70142 ■ 10054 32788 44126’ 

Mar 10065 9075' . -013 10038 9060 . 1207 1S832 

Jui 98.75-. -013. O 0. 

■ ITAUAN QOW. BOND (BTP) FUIUHE8 OPHOWB QBTq UraZOOm IQOtha at 10018 

Strta CALLS PW* — 


. 1 ite=-- " -»4 

'/ _ s ^ 

■ax' • * j ^ 


.pPamBg.eOrtli.rJm 


Pitorntg 

8ratarlaan nto. 

FtxUadi 

Ftaltodirtkar 


Bh Ttao worth . 
P 2 Tbama 
G atnrt. 
6 One year _ 


ECONOMIC DIARY- FORWARD EVENTS 


TODAY: African, Caribbean 
and Pacific (ACP) Council of 
Ifinistere meets in Brussels to 
debate mid-term revision of 
EU-ACP Lome Convention (to 
Dec 2). East Africa summit in 
Kampala. 

MONDAY: Parliament votes on 
the increase in the UK’s contri- 
bution to the EU budget Major 
British banking groups’ mort- 
gage lending (October). EU for- 
eign ministers meet in Bros' 
sels (to Nov 29). Pariiamentaiy 
assemb ly of W estern European 
Union (WEU) meets in Paris 
(to Dec 1). Strike by Belgian 
public sector company work- 


ers. Dr Ahmed Esmat Abdel 
Megtrid, Arab League secretary 
general, addresses Chatham 
House on “The fixture of Arab 
integration”. FT conference “ 
F inancial reporting in the UK” 
In Lo ndon. 

TUESDAY: Mr Kenneth Clarke 
chancellor of the exchequer 
presents his budget for 1995/96. 
US consumer confidence 
(November). US House of Rep- 
resentatives votes on Gatt 
agre em ent* European Union 
energy council meets. Negotia- 
tions between Israel and FLO 
on elections in the West Bank 
and Gaza Strip are expected to 


resume. Mr Helmut Schmidt 
former German chancellor, 
speaks an the role of Europe at 
Chatham House. 
WEDNESDAY: Economic 
trends (November). Monthly 
digest of statistics (November). 
US GDP (third quarter). Euro- 
pean Parliament mini-session 
(to Dec 1). International Tele- 
matics Conference in Paris. 
Speakers 1 tiHtw)p Mr Edouard 
Bahad ur and Mr Albert Gore. 
THURSDAY: Share register 
survey report (1993). Welsh 
local government statistics 
(1994). US personal income 
(October); NAPM (November); 


Treasury BBS Bid Bond YMta 

551 Twyev 

553 The* |»ar. 

543 Rwjta 

5SB 10-year 

£88 30+rt* 


construction spending (Octo- 
ber). US Senate votes an Gatt 
accord. Nato foreign ministers 
meet in Brussels (to Dec 2). FT 
conference “Venture Forum 
Europe “94” in London. 

FRIDAY: UK official reserves 
(November). US unemployment 
(November); leading indicators 
(October). Conference on Secu- 
rity and Co-operation in 
Europe (CSCE) Budapest 
review conference. Foreign 
ministers from the five-nation 
“contact group" trying to bro- 
ker peace in former Yugoslavia 
meet in Brussels. General 
strike called in Italy. 


bl w l tarn. d>§ taw na 11001 . ph * — day* opro k *, ctaa utbto pub 75777 


Spain 

■ NOTIONAL SPAM8H BOND RiniRE8 (LET) 

Open Sort price Chengs High Low Eat voL Open tot 
Dec 8866 8766 -063 88.10 87.60 50/488 78,438 

Mar 87.18 8762 -028 87.19 8760 2.136 7260 


■ LONG Q8.T R7TURES OPTION8 (UFFQ 2S0600 648« cf 100% 
Strike ■■ CALLS - PUTS 


EaL roL tota. Ota 404 Pub 3837. PreriBM a opon W, Cato 0BBB Puls BOB 


Wee 

Mar 

.. ..Jun 

■ ■**::- 

. . 

. Jun . 

9980 ' 

2.1B 

m -Ttaa - ; 

.'.•.■*12# 


-L7T ' .. 

10000 

123 

nna 

• 2.16 - 


•• 2-06 

1008D 

1.70 

067 

• 246 ' 


242 


«eL tBBL Ctoi 12H MB 308. PiariBB d«ta CMn 54, Oda flOttl Ata 7401 


■ MOTIOWAL UK qa.T FUTURES (UFFq- £8060032nd» of 100% - ‘ 

Open Sett price Change . Hltfi Low Eat vol Open tot 

Dec 10348 103-05' -0-04 103-18 102-27 36482 88497 

Me 102-24 102-15 -0-03 702-24 702-04 3040 3396C 

Jun 101-18 -0-03 0 0 - 

US 

■ US TREASURY BOND WIWIRE8 (CGI) >100:000 32nde ol 10058 

Open Salt price Change , Hgh Low Eat voL Open tot 

Dec 98-18 9331 +0-06 99-03 9316 488^40 323667 

Mar 97-30 96-12 +308 9310 87-29 24,464 105638 

Jui 97-15 97-27 . +307 87-30 97-13 1650 12685 


KOIS'**"- 


• Kiar,2r*m 

B'JTC B1-* - “ 

I EXU. . 

j Ci\- •• 

1 XXX.. 

I BB9 - - ' * 

i 

Ei •' ' 

"Jr. 

Jri- •» 

i: - ; ■ - 

l£ — - | 

- 

■j * 

IV 

L 

*=-i * - 


-■a , . 


Ecu ■ N 

■ ECU BOND FUTURES 04ATTF) 5 

Open Settprice Change Mgh Low Eat vet Open tot 
Dec 8268 82.10 +068 8220 8160 2,843 8676 


■ NOTIONAL LONG TBtM JAPANESE GOVT. BOND mTURES 
(UFFQ YIQOm lOOfta of 10096 


tat voL Open tot OP* 1 Ooa» Change High Low Eat veil Open Tnt 

2,843 8675 108.73 108.73 10863 8 0 

Mar 10869 108.10 10768 1424 0 

* LFFE cortracB traded on APT. Ah Open krtaracr flga me lor prarioua day. - 


GERMAN 

Rele\aiH. iniclliiJoiH c. * n <. 1 rcl i;i ble 
Cicnnan lino!'. \ ho wccki> l ii^lish 
l;i i'i siLKiiic new nIcI l or C'>\orinL! 
Cicrman politic, economy and 
commerce Id: ihc mies nai. ional 
business comnumii\ . 


.V i ( / ) . ■- ( //.' • .-i> I n ■ i ! i ! ■ i i ! ! > ; ■ / ,. • / 

7 oi/i 

[uthov: "In Search of I .\allcncc'‘ 


FT 


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• Regio n al risks and opportunities 
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For exp o rters, importers, strategy planners. Investment 
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To wedw a FREE n e i g h ? copy of Censaa B«W. 
eeefacC Gcraaa Brief. PO Base 3651, lortoa SW12 STH. 
Tail +44 (Pj) SI Cn M66 Knc +44 (O) *1 «73 USS. 


DO YOU WANT TO KNOW A SECRET? 

TJ» LBix Saratov w* show you how f» markets REALLY wotk. The amarinQ 

batfng techniques of tBlegenrfayWD. Gam can inoBeaayowgvte and certain yow 

bssea HDW77Itt*#»8Bcrat RhpOB 474 0080 tDbockytwRSpto. 


FT-ACTUAR1ES FIXED INTEREST BENCES 

Fti Day's Thur Accrued 

UK flts Mce todtoea Nor 2S ctange H Nw» totoraw 

1 Up to 6 yeas (23) 12069 -002 12081 2.18 

2 315 yean pa 14164 -OlIO 14168 2.18 

3 Orer IS yearag) 1S864 -018 16863 365 

4 hadaBnrttaaiq 17863 -053 179.79 1.11 

5 AI stocks (90) 13834 -089 13046 232 

Low c «e» uu ytad — 

Ytakta Nw 28 Nov 24 Yr ego httgh Low No 


6 Up to 5 yarn! 

7 Omr 5 ysara ft 

8 AI stocks (13) 


28 Nov 24 Yr ago 


. w Ogta Hwr 

Nov 26 change 36 Hen 24 

18731 +068 187.10 

774 JO MUSI 17467 

175.11 +007 17469. 

12930 -Oil 12934 

* New 25 Nov 24 Two 


j 

Cta. . 


867 nan 
630 can 

041 2QM 
062 2471 


041 838 028 961 I 

8.46 043 098 966 1 

048 043 761 965 1 


835 831 039 9.16 1 

2-Z2 S' 87 718 9 ' 25 1 

083 036 7.19 969 1 


5 y« 835 032 002 865 COW 057 fl§n 041 838 028 961 BOW 562 figf!) 835 B31 039 918 BOMk >tot nom 

iByre 035 032 088 399 830 Can 8.46 843 668 965 COtt 839 fiWlj 8.70 837 7TO 325 &V$ bmESS 

ss & JS USS ssp! “• “• ,jn “ 5BS «• ?:)l SISS SS.H 

M M M Intttoton rata 5% — — toflNfaw rate 10 % 

UptoSyrs 3^ 2.15 4.12 flVIl) i13 14/11 231 239 130 361 (lim) 1.10 pe/3 

oversea 3.83 333 3.12 369 (21/9 238(2071) 334 334 266 079(21/8} Z70 (20/1) 

Debs A tort 6 years — 18 years — "0 kobo 

047 046 735 1007^9) 7.19(1071} 944 OC 767 938 <2<VB) 73a COY1) B41 93S TL) ewo, 

Average iposs radem p Mon ylekto era shown above. Coupon Banda: Low: 095-7*96; Mactanr 898-10k95; Htfr IlfTand over, t Rat yWd. y« y« toda^** ™ Pm 

FT FIXED INTEREST INDICES GILT EDGED ACTIVITY IMMCES 

NwZ5 l * lv -“ ** Wo» « YT ego Wgtf LoeT Nov 24 Nov 23 ^ 


— WVIw rata 595 — r?~-T— - t — — MaBon nto 10% 

332 332 2.15 4.12 fll/11) ' i13 (4# 231 239 130 361(11711) 1.10(16/2 

083 333 3.12 339 (21/6) 238 (2071) 334 334 266 079 (21/8} 2.70 (2Qn) 


FT FIXED INTEREST INDICES GILT EDGED ACRVITY INDICES 

HSZ1L2Z3* YTego Wflff Low* Nov 24 Nw 23 N ov 22 Nov 21 

govt Seen M Q 9269 9233 9237 6138 61.74 10064 10764 8834 Oft Edged barite TaAA ^57 iB3 - 

Raad totareat 10839 10835 10838 10833 10815 12*33 13337 10830 May avsrega lio2 

rff^~ M ’ ,,w, “^ , *^*^“"«w.ta.tataiggta.“«fata2!L( 


UK GILTS PRICES 


1400 -. 
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iS* 3. 
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Ua15pc1997 12.77 

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TrtaiPapc 19988 013 

tail t2t*pc 1999 10.77 

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TrtaBpclBWfT U0 


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575 9B% 

US 1QZ1! 
840 105H 
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FINANCIAL TIMES WEEKEND 


LONDON STOCK EXCHANGE: Dealings 


Details of done shown below have been taken with consent 

from last Thursday's Stock Exchange Official List and should not be 
reproduced without uuwfcsto n. 

□state relate to those securities not Included In the FT Share information 
Services. 

Unless otherwise indicated prices am in pence. The prices are those at 
which the business was done ki the 24 hours up to 5 pm on Thursday and 
settled through the Stock Btchange TaUsman system, they are not tn order of 
execution but In asoandng order which denotes the day's highest and lowest 
dealings. 

For those securities in which no business was recorded in Thursday s 
Official Ust the latest recorded business In the tour previous days Is given 
with the relevant date. 

Rule 45(a) stocks are not regulated by the International Stock Exchange 
of the United Kingdom and tha Hepubfic of Ireland Ltd. 

t Bargains at special prices. ♦ Bargains done the previous day. 

National & fiartncWI Sdg Society 1(J%% 
StfXJrd Bda 2006/1 1 - CURD 
NaOond W urii i feM i Bank n£ n%% Und- 
SubNta EiaWCwrtoPrflflss - ««% 
TMtorrf Westmtamr Sank PLC 11%% Unc>- 
SubNta £100QfCnv to filJBr - £ioa%4> 
Naiiaimde BuMbig SoeMy 6lg9C W9 
legsts ^^rd- E 8 av_^ ^ 

MSOM^^OOOBia«C)-£in^ 
pZNoflfl 

Tknrov (Ktagtaxn aQ 0375% Nts 2003 (Br 
sc v«i - scoria piMcfi4) 

Osaka Gas CO Ld si 25% 8da 2003 (Br C 
Vte) - pyi 3| 

PowerGen PLC 6%% Bds 2003 pr 
ElOOOO&IOOOOn- £97% (227*834) 

RUC CapBN Ld S%X Cm Cop Bds 2006 (Sr 
C&000&50000) - £12B 

Rank OrgantsBBon PLC 8%% Beta 2000 (Br C 
Via)- £96% (237*004) 


British Funds, etc 


Tmsuy 13%*Sft2000«a-2123ii 124ft 

Corporation and County 
Stocks 

Btantagtam Dbtrict Canid 11%% Red SIk 
2012- £118%% 8 

Dudley Metrapaatan Barautai CoundTK Ln 
Sdc 2018 (Rag)(BF) - £80% 

Konstnoton a Chfteftapoyai BorauglSlI.lSW 
Rod Sta 2006 - £111% (231*004) 
iMdstCty at) 13%% Rod Stk 2000 - £124% 
C18No94) 

ManctestertCtty at) 11-596 Rad Stk 2007 - 
E115%(?1No04) 

Uanctatw Cop 1881 3% Red Sta 1B41{nr 
aft**) - Q0% (187*004) 

Manchester Cop 4* Cora tnd SIK - £40% 
(18N094) 

Saftard (CBy ot) 7% Ui S8c 2019peg) - £80% 

UK Public Boards 

Poet of London Authority 3% Pcrtot London 
A SIk 29/89 - £78 (181*094) 

Foreign Stocks, Bonds, etc- 
(coupons payable in London) 

Abbey Nstlonta Swung Capital PLC8%» 
Subord GM Beta 2G04(Br£V«a) - £9&%4 
Abbey rteUaref Sterttog CupM PLC1 1%% 
Statonf Old Beta 2017 - £11583 85 % 


Kfand Swribg finding PLC 10%% GW 
Bds 2001 (Br Etta] - £107% -65 
RothscMds GonfinuaUon Fln(C.I)Ld9% Perp 
Subord GW Nts (BfCVarkwa) - £80% 
Royal Bonk of Scotland PLC 6%% Bds 
2®M(Br£Vara)- £83% (ZJNoW) 

Royal Bark of Scotland PLC 9%% Undated 
Suboral Bda (Br £ Vm) - £83.71 (23N084) 
Royal Bar* of Scotland PLC 108% Sikwral 
Bdg 2013 (Br E Vta) - £104% pi7*o94) 
Royal Bank oi Scotland PLC 10%% Subord 
Bda 1988 (BrfSOOOKJGOOO) - £104% 
{21N0941 

Shorn NodgaUon Owpwulluu 3JS* Bda 
2003 (Br SIOOOOaiOOQOGI - $102% 


Abbey Nadonal Traaauy Sana PLC 4.76% 
GM Nta 1999 (Br S Var) - $06 j 6 (237*004) 
Abbey Nadonal Traosuy Snrvs fiX GW GM 
Ms 1 898(BrC1 000,10000, 10000G) - £89% 0 
(227*094) 

Abbey National Treasury Sana PLC 7%W 
GM Nta 1998 (BrE Var) -£97ft(23No84) 
Abbey Nadonal Tmniy 8enn PLC 8% Gtd 
Bda 2003 (Br £ Waj - £829 3 % 

Aada Fhance Ld 10%H Cm Cap 
Bda200S8ar EBOOO&IOOOOO) - £106% 
Asaociatad Bitttah Puts Hdcp PLC 10%% 

Bda zoisprfnoooo&i 0000(0 - £10013 

(237*004) 

Asaodstad British Ports Hdga PLC 11%W 
Bda 2011 (Br C10000&100000) - £118% 
(23No94) 

BT Fhance B.V. B%% Gtd Bda 199S 
(BrS&OOO&SOCOO) - 5100.73 (23Ne94) 
Bsrdoys Bark PLC 88% Nts 2004(BrEV3rf- 
bus) - E83ft % (23No94) 

Bodays Bank PLC 8% Pram M Bearing 
CapHta Bda(»£ Vta) - £86% (23N4M) 
Barclays Bra* PLC 9875% Undated Subord 
Nts - £97%$ 8$ 

Bfae Cfatto Industries PLC 10%% Bds 2013 
(BrcsooMToana - es®m 
BrntOnd & Btorfoy Bi**ng SodatyCoaared 
FUtfttaNtg 2003(Reg MttfCIOOO) - £94* 
Bradford & Btogiey BuUctog SocMyColarad 
fits Rta NB 2003 (Sr £ Vs] - £84 
Bristol A WSat Bidding Society 10%% 

Srtord Bds 2018 (Br C Ver) - £101% 
(217*00*) 

Bnttab Gas PLC 12%% Bds 1885 
fBiCIOOOAIOOOQ - £102.15 (22Na94) 

Brtttab Gib PLC 7%% Nts 1997 (Br £ VS*) - 
£S9%(23No»q 

Brfttan Goa PLC 10%% Bds 2001(Br 
£1000.1000041 00000) - £107% C21No84) 
Brmah Gas PLC 8%% Bds 2003 pr E Vta) - 
£94% 

Brtttfi Goa PLC 8%H Bda 2008 (Br CVar) - 
£97% e21No94) 

British TNa cowaiM ikadlBWa PLC Zaro Cpn 
Bds 2000(Br£1 00041 0000) - £83% 

(22No94) 

British Teta c ornmuntcadona PLC 7%% Bds 
2003 (0r £ vwi - £89^ (Z3N084] 

Bunrndi Castni Captbd(Jenaiy) Ld 9%% Cm 
Cap Bda 2006 (Rag £1000] - £13793 8 % 
.32 % 9 % 

Cm Captni Ld 5%H Cmr Cap Bds 
2005(8(55000) - $121 

Caua 4 Wlraieas Ini Ftaansa BV 8%% GW 
Bds 2019pr£ V3za} - E91% (22N094) 

DNy Mai ft Otnenl Trust PLC 8%% Bicb 
Bds 2005 (Br£1000S500q - £152 
Dfnmakfl&igdam at) 6%% Ms IBM Pr £ 
Var) . £94% 

□epfa finance N.V. 7%% QW BA 2008 pr £ 
Var) - £87% % 

Eastern Becttdty PLC 8%% Bds 2004{Br£ 
Van) - £8595 (Z2NO04) 

Bf Entsipitaa finenca PLC 8%% Gtd Each 
Bds 3008 (Rag £5000) - £102 
Bf Enterprise FkisnoB PLC S%% GW Each 
Bds 2006(Br£9000ft1 00000) - £9795 8% 
Far Eastern Department Stores Ld 3% Bda 
3001 (Rag tntapd imU *1000) -581% 


FWondtftapUjOc of) 8%% Nta 1997 p£ VBr) 

- £103 (22Na94) 

Ford Credit Europe PLC 8%% Nts 
laonaei 000,1 oooo. iooooo) - cim% 
C23N084) 

Fane PLC 8%% Bds 1897 pr £50009 - 
£9942 (21NOB4) 

GBB PLC 895% GW Sec Bds 2018 
(£k£1 000) - £83)3 (23Na84) 

GanetN SectrtcCrtcit Inti NVZanCXxi GW 
Nts IWEprSlOOO&IOOOO) - $889 (I8NOB4) 
GutaMsed &port finance Carp PLC 10%% 
Old Bds 3001 (EkCVar) - £107% (IWkriH) 
Ohmantaod Export Rnm» Corp PLC GW 
Zero Cpn Bds 2000prffi 000041 00000) - 
£00% (23Na:i| 

GUmaas PLC 7%% Nts 1897 (Br£ Var) - 
£87% 

Guntwas finance BV 8% GW Nts 
iweppiooo&ioooa- 8ioi.n pocioeq 
HSBC Hotdngs PLC 9%% Subord Bds 2816 
(Br £ Var) - BHL895 

HWtax Bukflng Society 8%% Bds 2004 
pr£iooaioooo.iooooa) - eb 2% 3% .i« 

(aaNcflty 

Hattac Bidding Soctaly 8%N Nta 
18MPrWar* - 08%* M A* A* 
tkddtoc Buldkig Society 8%% Nts 1987 
(BrfVa)- £10095 
HaKsx BudcWg Society 10%% Nts 
1897pr£1 000410000) - £104% (21NOB4) 
Htannarsan fiepraty Inv 4 Dav Carp 10%% 
Bds 2019 pr£1 00004100000) - £102% 
CI8N08fl 

Hanson PLC B%% Cm Sutxnl 2006 Pr 
EVor) - £102% C23No94) 

Hkkaon Capftal Ld 7% Cm Cap Bds 2004 
part - 130(18No84] 

Hldwon Capksf Ld 7% Cm Cap Bds 2004 
(8^1000410000) - £130% (18N084) 
Hydro-Ouaboo 690% Dabs 8an K - 
1988pag£Vta)-£B198(18Na94 
knpartal Cfwrelcat bidusMas PIC 9%% Bds 
200E(Br£1 000410000) - C102A 
tata wa Bonal Bank tor Rea 4 Dm B%% Bds 
2007 (BrfSOOOl - £102% 
intomaHanul Bank tor fiac A Dm 10% BA 
188gpr£l000&10aoq - £1W45 (22N0943 
International Bank tar Rec & Dev 10%N Ms 

1988 (BrESOOO) - E105A (22No84) 
Kafy(BflpubSc oQ 10%% BA 2014 
pr£10000&50000) - £107975 
Japan Darelopmsnt Bank 7% QM BA 2000 
Or E Va) - £82% (23N084) 

Japan Fki Corp for EnL B%% Gtd 

BA 2004(Bi£1000 6 10000) - £83% 
Ce2No84) 

KbneN Bactrto Power Ca Inc 7%% Ms 18M 
(&£ Var) - £96% p3Ne04) 

Laid Securities PLC 6%% Cm BA 2004 
£b£5O0Q45OOOO)-£1O9 C22NoS4) 

LaaA Ponrunont BuUkig Society 7%% Nta 
1B87(Br£Vta)-S87% ®1No#4) 

LaeA Patmanent BuMno Society 11%% Ms 
1886 (&■ £50004100000} - £104% p2No®4) 

LaaA Rannanent Staking Society OoBaad 
l MtaBtlOOO) - £95 89 


. I PLC 7%M GW 
Ms 1988 pr £ Vta) - C90% (21No94) 
SnStfddkie Beecham CaptA PLC 8%% GW 
Nil 1898 (Br £ Vo) • £97 A (18N084) 
Soctata Generaki 7979% Parp Subord Nts 
(8r £ Var) - £86% (18No34) 

Stasa Bank of New South Watas Ld 7% BA 
1998 Pr 8A Var) - 8AM% (22f4o»Q 
TSB Gnxp PLC 12% Subord BA 2011 Pr 
Cl 00008 100000) - £117% fEZNo64) 

Tarmac finance (Jersey) Ld 8%% Cm Cap 
BA 20« Peg Cl 000) ■ £88 % 95 % 

Tata 4 tnt finance PLC 8% GW BA 
1999Pr£1 000041 00000} - £86% 

TateSLyle Intfin PLC/TataSLyta PLC 5%% 
TSLUFnGdBcs 2001 Pr) W/WtsTBLJPLC - 
£84%% 

Teoco Capital Ld 8% Cm Cap BA 200SPeg 
£1) - £116 % %% 

Thames Water PLC 9%% CmSubcrdBA 
200G|Br£SD00450000) - £122 C22NOB4) 

31 Group PIC 10%% GH BA 
200 1(BrC1000i 10000) - £107% (23No94) 
Tokyo Boctrtc Power Co (no 7%% Nta 1998 
(Br£ Vw) - £85% (IBNofM) 

Tnaasury Corporation of Vfcftxla a%% CM 
BA 2003 Pr £ V8t) - £96% (22No041 
U-MIng Marina Tmaport Ccrporatt»1%% 
BA 2001 Peg In Mtat SI 000) - $101 
(23No94) 

Union Bankol FMand Ld VarRta Sub Nts 
ZOOOPtSHXXXI) - 38995 99.18 (23fW»Q 
Untad Kingdom 8%% BA 2001(Br 
ECU I00a 100004100000) - BC102J 
(IMaM) 

wartsagpXL) Group PLC 9% Porp Subord 
Nta papNtsBrt) - £B3%^ 

Weflcome PLC 9%N BA 
2000Pr£100041000q - £101.78 (18NOS4) 
Walsh warn UtOBes Flnanea PLC 7%% GW 
BA 2014(&£VarKP)'P) - £10% (237WS4) 
Yuen Foong Yu Paper Mlg Co Ld 2% Corpo- 
rato BA 1899(Br$1O0Oa) - SI T8L85 
(22Na94) 

Export Devetapmwrt Corp SCOOQrri 7% OaM 
Iraawrent 2S/3/9B - SC95.1* 

GMAC Australia (finance) Ld SA50m 795% 
Ms 16N1/M • SAM 90 (19N094) 
L s tWataQWMtwikBadBtMWiB tt Bff i berg 
S20Qm 7% Mb 3711/87 - $98% 9845 
C22N094) 

New South Wtaos Treasury Corp SA34rn 
12% Oobal BA 1/12/2001 - SA108.197 
C2N094) 

Swedenpbndam ofl EBOOm 7%% Nts 3/12/ 
87- E87y (23Na9ty 

SwadanOOngdani at) £2SOn 7% bntrunwnts 
23/12/88 - £94 % (Z1Na84) 
StredenSOngdom ofl ISSOm 7%% HA 280/ 
2000 - £94405 P3N094) 

Sterling Issues by Overseas 
Borrowers 

Aslan D a watopnwt* Bank 10%% Ln Slk 
2008(Rad - £112% (23Na94) 

Bank of mwea 10%% Ln Stk ZOIOPed - 
£96p1No84) 

EtaOpaan Investment Bank 8% Ln SIk 2001 
Pod -£101% 

European biwslnNnt Bonk 9% Ln Slk 2001 
(BrESOOO) - £101% (Z1No94) 

European Investment Bet* 8%% Ln Btk 
2008 - £108% 

Europawi biwabitant Bonk 11% Ln Sfc 
e002ped - £111% C22N084) 

GtarWtsr (Gcwanmont tri) 11%% Ln SIK 2005 
(Reg) - £117% % 

InAi taBoiMl BonktarReo6DevO%% Ln 
Stk aOIOPasQ - £105% C18N0B4 
WwrnaBonal Bank far Rac 4 Dm 119% In 
Stk 2003 - £1165 (18N094) 

Irakmd 12%% Ln SW 2008ped - £125% 
(23Na84) 

New Z an tand 11%% 9tk200apatf -C117% 
NawZstaand 11%% Slk2014pr) - £121 
(MNcM 

Nom Soottaprowhce oQ 11%% In SIK 2019 
-£T22* ■ 

PatralaaB Mataconos 14%% Ln Sttc 2000 - 
£120(181*184) 

PortugtaPep oQ 8% Ln Slk 20160*3$ . £98 
(22No94) 

Pimtooa A Quebec 12%% In Stk 2000 - 
£127%* 

SwadanlKkigdan at) B%% Ln Btk 2014psg) 

- £103fl (22NaB4) 

mnacanaA PfaAna* Ld 16%% let Mg 
Pipe Una BA 2007 - £147% B3No84) 

Listed Compank^exdudkig 
investment Trusts) 

ABF ImaslmaMs.njC 5%% Una Ln Stk 87/ 
2002 SOp -38% % 

ABF Imaetanenbi l\C 7%% VMS Ln Stk 87/ 
2002 SOp - 44% 

APV PLC 545% dan PlIEI -Q5(21No94) 
ASH Capkal fihane^lerasy)Ld 9%N Cm 
Cap BA 2008 Pag Units 100p| - £71 
Aberdeen Trust PLCAVnstoStaltorOnl- 
45 

Abbust AUaa Rind Shs of NPVPMfag Itart- 
faflo) - £1918 (22No94) 

Afaart fisliar Group PLC ADR (10H) - 9096 
(23NoS4) 

Ataandar 6 AlwcMider Sendees bw She of 
ObsbC ComSBt Si. Eii% 

Alexander* HWgs PLC 'A'PsUOOM lap - 
15C22NO04) 

Ataaaandare EWgs PLC 8%% Cum Prf £1 - 
8l%(22Nae4} 

Ataron Gm^PlC 645p DM) Cm Cum Rad 

AM AnraqRC AOR (HI) - 8894 896 

A«ed Domaeq PLC 7%K Cun Prf Cl - 78 

Ataad Domacq PLC 6%% Uns Ln Sk - £63 
| PLC 7%% Uns Ln Stk 93/96 - 

I PLC 10%H 1st Mtg 
3945 (I8N0M 
I Senricm PL»%% 
egkUOCIOOO- 

Stk $3,125 


Leads tfahrfl PLC 10%% BA 2014 
SKioooo&ioooaq - 00797 griNaA) 
UayA Bonk PLC T%% Subord BA 
2004pr£VMouri - £88% (21N094 
k®C PLC 10%% BA 
2003P£l(H0ft1 000Q) - «10t% (B3N094) 
Marks 4 Spencer Ffaenm PLC 7%% GW Ms 
1898 Pr E V») - £85% (22No84) 

National OHd Co PLC 7%H BA 1888 pr £ 
\W-£8g»£lN0B4) 

^iMBprEV^BW^I^oW ) 0 



Angfaraf Ldf 
(22NQM 
*f|faimwfa Qj P 

I 81818811 IMI 




PLC Cm Prf 50p - 48 
*' Maoc-Unksd InStk 
, (21No84) 
PLCWrn 

Ifl 

PLC 12%H Uns 
No94] 

Ld N Ord R09001 - $31% 32 
ADR (SI) - $8% 41 


Red Prt£1-4« 


I NVB%pGtd Red Cm Prf 
xftriHkM PLC B% Cm Oum 


FT-SE ACTUARIES INDICES 

The FT-SE 100, FT-SE Md 250 and FT-SE Actuaries 350 IndBcss and the 
FT-SE Actuaries Industry Baskets are calculated by The International 
Stock Exchange erf the United Kingdom and Repubfic of Ireland Limited. 
© The International Stock Exchange of the United Kingdom and RnpubOc 
at Mold limited 1994, AH rights reserved 

The FT-SE Actuaries Ail-Share Index b calculated by The Financial 
Timas Limited b conjunction with the Institute of Actuaries and the 
Faculty of Actuates. O The Financial Times Limited 1994. AI rights 
reserved. 

Tha FT-SE 100, FT-SE Mid 250 and FT-SE Actuaries 350 flKficss, the 
FT-SE- Actuaries industry Baskets and the FT-SE Actuaries AQ-Share 
Index are members of the FT-SE Actuaries Share Indcos series which 
are calculated In accordance with a stoidard set of ground rules 
astabfiahed by The Financial Tinas Umftad and London Stod< Exchange 
h conjunction with the Institute of Actuaries and the Faculty of Actuaries. 

“FT-SE* ami “Footsie* are joint trade maria aid service marks of the 
London Stock Exchange and The Financial Times Limited 


Avrtd PLC I0%« Uns Ln S» 98/98 - EI00 
(23Nc*41 

BETPLC AOA(4;1)-»W 

HM Group PLC 49p (Na< Cm Oim Rad Prf 

20p - 62^1 3 4 K3No94) 

BOC Group PLC ADR (1:1) - S11.08 
BOC Grot* PLC 2 8% Cum 2nd Prf £1 -40 
(22N094) 

BOC Group PLC 3.5% Cun 2nd Prf El - 52 
(ZSNoM) 

BOC Group PLC 1 2% » Una Ln Stk 2012/17 
£125 

BTP PLC 7^p(NBt) Cm Cum Red Prf IQp - 
(78 

(HR PLC ADR (4:1) - *16.17 (23No94) 
Bampton Mdgs Ld 8%% Una Ln Stk 2002/07 

- S»3% 6* (23N094) 

Bvk of lretand(Gowmor 4 Co ol) urats NCR 
Slk Sra A £1 4 C8 UquWaflon - C11 % 
(18NOS4) 

Bonk oT IratandlQavHTKii- 4 Co al) Urats NCP 
Slk SraA lr£1&K9 LfaudOHon - l£ll% 
(107*094) 

Banner Homes Group PLC Oid 10p - IOS9 
BsWaya PLC ADR (4:11 - $3894 
Bodays Bank PLC 12% Uns Cap Ln Stk 
2010 -£116% 7 

Bodays Bank RjC 18% Uns Cap Ln Stk 
2002/07 - £135 (21No94) 

Banfan Grtup PLC 79Sp (W Cm Rod Prf 
JSp-79 

Barden Group PLC 11£Sp Cum Red W 
2005 lOp - 96 % (21No04) 

Barings PLC 8% Cum 2nd Ptl £1 - 88% 
Barings PLC 9%% Non-Gun Prf Cl - l1S%i 
Baiuta Exploration Ld Old FtO.OI ■ 210 30 
Basa PLC ADR (Znj - *169244^ %<i 
Bass PLC 7%% Uns Ln Stk 92/97 - £96% 
fiass faveatments PLC 7%% Una Ln Site 92/ 
87 - £96 

Barges*) d-y AS 'B' Non Vtg Shs NK29 - 
NKISO.8^ 

Ormingham MMahkas BuWng Soc 8%% 
Perm tot Bearing Sha £1000 - £87 % % 
8faa Orote Industries PLC ADR (1:1) - 5496 
Boots Co PLC ADR (£1) - *1/ (22No9fl * 
Bowttarpa PLC 7% Una Ln Stk 9CMK> - £98 

087*004) 

Brattford 4 Btogley Bddtog Soetoty 1 1%% 
Pam tot Bearing Sha £10000 - £110% 1 
Bradford 4 Btngley BuSdtog Sodetyi3% 

Perm Int Bearing Sha £10000 - £122% 3>2 
Brent Walker Group PLC Wts to Stas lor Od 
-0% 

Brent Wtaher Grow PLC 8£% 3rd Non-Cum 
Cm Red 2007/10 £1 - 1% 

Bridon PLC 10%% Deb Stk 91/96 - £99% 
(21No84) 

Bristol Water PLC S%% Cum Ind Prf £1 - 
105 % (21NO04) 

Brtstta Water HUBS PLC Ord £1 - £10.07 
Bristol 4 west B<4dha Society 13%% Perm 
tot Bearing Sha £1000 - El 23 % 4% 
Manila BuritSng Society 13% Perm tot 
Bearing Shs £1000 - £t10.B54 9* 

British Airways PLC ADR (10:1) - 559 % % 
BrSMt-Amertccai Tobacco Co Ld S% Cum rtf 
Stk £1 - 53 (23No94) 

Brittah-American Tobacco Co Ld 6% 2nd 
Cum Plf Stk El - 84 riaNo94) 

British Land Co PLC 10%% Ofd 1st Mtg Deb 
Stk 2018/24 - £110 

British Pabdeum Co PLC 8% Cun 1st fif £1 
-79* 

British Petroleum Co PLC 9% Cun 2nd Prf 
£1 - 90 (22No94) 

Brtttah Steel PLC Aim (10:1) - 524% % 

British Steel n.C 11%% Deb Stk 2018 - 
£118% (22NO04) 

British Sugar PLC 10%% Red Dab Slk 2013 

- £114.8125 H 

Brixton Estate PLC 890% 1st Mlg Deb Slk 
2028- £101% 

Btagto(/LFJ A Co PLC Ord Shs 5p - 63 
(23No94) 

BuknssfH.P4Hdgs PLC 8%% 2nd Cum Plf 
£1 -98% 

Bund PLC 7% Cm Uns Ln Stk 95/97 - £88 8 
Burnish Cased PLC 8% Cun 2nd Prf Cl - 
60 (18N084) 

Burmati Costrof PLC 7%% Cum Rod Prf Cl - 
66% 8 (23No94) 

Burton Group PLC 8% Cm Uns Ln Stk 1896/ 
2001 - £83 

Buna Mntog PLC 10% (Net) Cm Cum Had 
Plf 1994 10p - 2% % (18No94) 

CaBorrta Energy Co Inc 9>s of Com Stk 
$09675 - £10.602879 (22NOB4) 

Cambridge Water Co Cons Ord Sflt - £8600 
(18N084) 

CeplU a Counties PLC 6%% lat Mlg Dab 
SIk 83/98 - £92 GZ3Nu£H) 

Capthri & Courses PLC B%% 1st Mtg Dab 
Stk 2827 - £104% (Z3N094) 

Cation Conanurricubons PLC ADR (2:1) - 
527% (237*004) 

Canon ConanuricatkmB PLC 7%% Cnw 
Subord Bda 2007<Reg £5000) - £134 % 
(Z3N084) 

Otar AUan Git Income fit Ld Ptg Had Prt Ip 

- 49Q pSNo94) 

CrearpWa too Sha of Com Slk *1 - 551 %♦ 

a* % 4 > %♦ W 

CMhoy Momidtanal Hidgs PLC 10%% Cum 
Plf £1 - 106 (22NO04) 

Chafaood ABanoa Mdga Ld 7%% Ua lit 
Stk GOp- 33 

QwHartfwn & Gtouceeter BuH Soc 11%% 
Pam Int Baortog Sha £50000 - £11 3ft 
(22N094) 

CtayNOw PLC 83% Staiaid Cm Urn in Slk 
2000/01 - £80 5 (SlNoBty 
Coastal Corporation Shs al Com Slk 5033 1/ 
3 - $26% P1N094) 

Cooto Patcna PLC 4%% lira Ln Stk 2002/07 

- £84 

Coals Mm PLC 6%% Uns Ln Stk 2002/07 

- £80% (22NO04) 

Coata Vlydia PLC 49% Cim m ei - si 
Oohen(AJ A Co PLC Non.V 'A' Old 20p - 
498 500 p2No94) 

Commercial Union PLC 8%% Cun tod rtf 
D-86%0% 

OommaroW Unkm PLC8%% Cun tod fif 
Cl - 100% % 1 

Co-Opandkn Bank PLC 995% Nar-Cum tod 
fif £1 -105 

CDOkaonGroi*pPLC49%Cunfif£1 -68 
7lt(23No»4) 

OoutaJdsnC 6% Can Red 2nd fif £1 - 
68 (187*o94) 

CoulaMa PLC 6%% Una Ln Slk 94/96 - 
£96 

Coventry BUMng Society 12%% Penn Inter- 
est Baaing Sha £1000 - £1 13% 

Daly Mai 4 General That PU3 Ord GOp - 
£13.1 13% 

□Ugoty PLC 4JBS% Cum fif £1 -88 
Dabaraiana PLC 7%% 2nd Dab Slk 91/96 - 
EBBP3NOB4) 

Debenhama PLC 7%% Uns Ui Stk a0OZA77 - 
£83% 4 

Dabanhane PLC 7%K Una Ln Stk 2002X77 - 
£87(727*094) 

Dencora fiX 025% Cum Crw Red Prf £1 - 
108 7(29*094) 

Dawhuret PLC Ord lOp - 97 (21N094) 
DomMon Energy PLC Old 5p- 11 (1BNOW) 
SJAP PLC 5% Cun Pit £1 - 53 tmkteQ 
EcSpao BUnda PLC Ord Sp - 8% % 

8 Oro Mntog4fiqitareilan Co PLC Old IQp - 
535 55(217*094) 

SyaQMmbtedoN PLC OKI 2&p ■ £49 
(2ZN09fl 

Emeas PlX 095p(N«Q Cm Cum Red Pit 5p 

_ 00 y 

1 China Cteys PLC ADR (SI) - 
1737442* 
EricaaonMAXTatafonadiBboitaTaOOa 
HpooJSKIO - STM j 7384 8.163 96 8378 
mosa 985 9I8 1953 2% 971 3 .094 % 
381 % 95 4 4%% j483 % 374 % % 5 3 
.48 A09 % % % 7 94 

Essex aid Suttafle Water PLC 10%% Deb Slk 
94/90 - £100% (18No94) 

Estates Property Investment Co Ld 10% 1st 
Mtg Dab Sdc 201 1 - £94 (21NO04) 
EueOmySCASa filS (Oeporikny 
RtoataOl - 100 100 2 8 
EisoMnty SXA. Shs FH5 (&) - FR8.7 .7 
% .79 3 94 952666 
Eurotunnel PLC/Eurotumd SAltofts 
(Stoman toacrfaad) - FR2193 97 37 3 
92 946 2JJS 97 976 98 .1 .17 % 
Emtumal fiX/Eunotumd SA Fndr 
WUCIEfiX A 1ESA WMtoGufa BortJUta) - 
£10% S 16% (23NuS4) 

Euraumal PtX/Eurotumaf SA fiidr Wts 
) - FR87 (237*094) 

1 Co fiX Ord SOc 5p - 240 



COTO Com Slk $5 - 1 


> Corp PLC 7% Cm 
Cum Rad fif £1 -11821 (23NoS4) 

Haona PlX 5%% Uns Ln Slk 2004A39 - £72 

fiatehar ChaUngtLd Oid SN030- 

FdaOra^LCad 5p - 42 
Forte PLC 8.1% Una Ln 3tk 95/2000 - £97% 
GKN PLC AOfl 0:1) - S10% 1118 (18N094) 
GN Greet NortkC Ld Shs OKI 00 - 0KS4535 
(237*094) 

G.T. CTfle Greath find Ld CW SOW - 
£31%*31%* _ 

Ganaraf AecWsnt PLC 7%% Cun tod Plf £1 
-83% 

General AcdSM PLC 8%% Cum tod fif £1 
-102 

General Secblo Co RjC ACM (1:1) - $445 
Gestemer HWgs PLC QrI Cap 2Sp - 115 
(23N064) 

GfalH A Osndy PLC OrdlOp - 90 
Glaxo Group Ld 6%% Uns Ui Sdc 85/95 SOp 
- 49% (217*004) 

Gfaw Group Ld 7%% Una Ln Stk 85/95 50p 

aymacf totanatfami PLC 7%% Oum Prf £1 
-87(22No04) 

Qymmd totamabonel PLC T0%% lla Ln Stk 
04/BB-£1OO 

Goode Dunant PLC 39% Own Pit GOp - 25 
8 

1 fiX Ord 10p - 38(1BNa84) 

1 PlX 5% Cun Prt £l .51 



1 PLC 8% Cum Prt £1 -B7 

1 Group PLC 11%% Cab Stk £0U - 

£ 120 % 

jnenSfs Group PLC 7% Cm Subord Bds 
2003 petf- £102% 3 3% 

Suirass PlX ADR p^) - $34954 
kPmess H9* GkJbal Strategy W Ptg Red 

Prt SOirtCGtobel Bond Fu^i - £21 J427B6G 
fabMOB lna ACC Fund Ld Ptg Rad Prt 

SOOlpeueschamak Money Fd)- 
DM91948 (2S4094 

SBC Mdge PLC 1 198% Sited Bds 2002 
(0/ W*)- £110%$ 


Halifax BUMtog Socwty 8%% Harm Ini Bear- 
ing Sha £50000 - £85% (22No94) 

Halifax BUkJtng Society 12% Perm Irt Baa- 
tog Shs £1 (Rag £50001) . £115% (22No94) 
HaOdn HotcSng# PLC Ord 5p - 68 9% 70 
H« Engtoo«rtng(HWgs)PLC 5.55% Cun PIT 
£1 - 82 (18N094) 

Hammareon PLC CW 25p - 334% 5 8 6 30 1 
Haroys 4 Hansons PLC Old 5p - 242 
Htatfopaeta Water Co Oral Stk - £1730 BSO 
C21N084) 

Hasbro toe Sh# Of Com Stt SQ.M - 
3304234 f 

Haaiamera Eatates PLC 10%% lit Mtg Deb 
Stk 98/2003 - £102% (23No84) 

Holmes Protection Group Ire Shs of Com Stk 
$095-25 

HopMnwrs Group PLC 595% Cum Plf £1 - 
70 (2214094) 

Housing finance Corporation Ld 11%% Dab 
Stk 2016 - £113% % (237*094) 

Hypo FrewgnSCUBaaerw Asset Fa 
LdPtgRadfif $095 (DM Bondi) - 
DM1&434 (18No94) 

IM( PLC 5<i% Una Ln Stk 2001/08 - CBS 
(18No84) 

B hftnalavan Fund Ntf Ord FL0.01 - $18% 
172 17% l7%(Z2Na94) 
kMiend Group PLC Cm Cum Rao Pri 20p - 
129 8 

Industrial Control Servtoee Grp PLCOd (Op - 
122 3 

(rrH Stock Exchange Of UKARep of IrLd 7%% 
Mtg Dab 31k 80/95 - £99% 03No94) 
tosh Ub PLC Old WaiO - 1.84 195 P 182 
% 

Jardtoe Matheson Tffdgs Ld Old S0Z5 (Hong 
Kong matStrn) - £495 SH54.025942 
974815 % 970881 .63296 
Jardtoe Strategic ndga Ld Oro 50.05 IBu- 
muda Reglstar) - $H?7 D8No94) 

Jardtoe SSnsteu* hMga Ld Ord S095 (Hcng 
Kong Regtater) - SH23.85 4 927136.1001 
% 9805 

Johnson A firth Brown PLC 11 05% Cum Prf 
£1 ■ 85 8 K3N094) 

Johnson Group Oasiar PLC 79p (NaO Cm 
Cum RerTPrt UJp - 125 6 (23N094) 

Johnson Group Ooanerl fiX 9% Cum Prt 
£1 -0Op37*o94| 

Johnston Groifa PLC 10% Gan Prt £1 - 95 5 
P1NO04) 

Jurator Tyndol Int Fund Ld Dtatnbutton 
Shares Ip - 457 (18No94J 
Koraa-Europe Fund Ld SheflOfl to Br) 30.10 
(Cpn n - £8% 4t«7% 4250 4375 
k vitamer A.S. Free A 3h& NK 12.50 ■ NK287 
70% I % 2 28 Vi 3 4 

UKtaroke Group PLC ADR (1:11 - S252 293 
255(237*094) 

Land SeounOee PLC 6%% 1st Mtg Deb Stk 
93798 - £92 (187)094) 

Land Securities PLC 9% 1*1 Mtg Deb Sa «/ 
2001 - £100% (22N094) 

LASMO PLC 10%% Drt) Stk 2009 - £104%* 
Lebowa Platinum Mnea Ld Ord R091 - 76 

C22No94t 

Leads A Hoi beck Burning Society 13%% 
Porm tot Beamg Sha £1000 ■ £123 % % 
Leeds Permanent Bu*dr»g Society 13%% 
Perm W Bearing rsoooa - £128ft 
(22N094) 

LentsL/oOijPartnershm PLC 5% Cum Prt Slk 
£1 -57(187*094) 

Llonheatl PLC Cm Cum Red Prf 20p - 64 
(18No94) 

London fntamadond Group PLC ADR (5.1) - 
W9EU8N094) .... 

London Securities PLC Ord Ip - 2% % ft % 

% 

Lonrtio FIX ADR (1:1) - S2.4 
Lookers PLC 8% Cnv Cun Red Prt £1 - 
107% (227*004) 

ME PC PlX 9%% 1* Mlg Deb Slk 97/2002 - 
£99% (1 BNo94) 

MEPC PLC 10%% 1st Mtg Deb Stk 2024 - 
£115% % 

MEPC PLC 8% Uns Ln Slk 2000/D5 - E92 

1237*004) 

MoCaithy A Stone PLC 8.75% Cum Rad Prf 
2003 £1 -89 91 

McCarthy A Stone PLC 7% Cm Una Ln Stk 
9CV04 - £88 (22No94) 

Mdnanwy Properttaa PLC 'A' Ord ItCDI lO ■ 
IEQ0S5 (22N09fl 

McKay SecuriUu PLC Cep 20p - 168 
Mand atn Oriental Memattanal Ld Ord StLOS 
(Bermuda R%* - $HROS (237*004) 

Mandarin Oriatttri Inta ma Bonal Ld Old $095 
(Hong Kong Hog) - £0.725 
Marks A Spencer PLC ADR (8:1) - £259128 
(211*00^ 

Madam PLC ADR (4:1) - $10%$ 
Mendea(John) PLC 9% Cum fif £1 - 08 
(217*004) 

Merchant Ratal Group PLC B%% Cnv Una 
Ln Slk 99TO4 - £68 (237*a94) 

Merc u ry I nlam a ltanU to* Trust Ld Pig Red 
Prf Ip (Reserve Fund) - £50.4881 (23NO04) 
Musay Docks A Harbour Go 6%% Rad Dab 
Stk 94/97 - £94 (227*004) 

Mersey Docte A Harims Co 6%« Rod Deb 
SOI 06/89 - £87% (221*004) 

Moreay Docks A Hartxsv Co 3%% tod Dab 
Stk - £30 C23NO04) 

Mtangun Copper Mtoee Ld OnS S8i 8ZI -3 
(237*004) 

MM Kant Hoidngs PLC Waraies to aub far 
Old - 10(211*004) 

Mdand Bonk PLC 14% Subord Un* Ln Stk 
2002107 - £123976 % 

MucMowfAA JJQroup PLC 7% Cum fif £1 - 
B3p3N094) 

NEC finance PlX 13%% Dob Stk 2018 - 
E142H*IJ* 

7*PC PlX 7%% Cmr Bds 2007gRag) - £02 
TMIonal Medical EnUrprisna toe Sha ol Com 
SK $095 - $14% (237*094) 

National Poarar PLC ADR (Kfcl) - $7894 
70% 

National Westminster Barrii PLC NonHCum $ 
fif Sar A $25 - $25% (18NOB4) 

NMtanal Wootmtoatar Bank fiX 9% Non- 
Ctsn SOg fif Sres 'A' £1 - 104% % % 
Hatton* Want mtoa tar Bar* PLC 12%% 
Subord Una Ln Slk 2004 - £118%* 
NewcnsBa Buldtag Soctaly 1Z%% Perm 
totaraat Baaing Shs £1000 -£115% 
C23No94) 

News Manadfanil PLC 49% (FWy 7%) 1st 
Cun Prt £1 - 67% 

Nsm totamafanta PLC 8% aid Cum fif £1 

- 70 (227*004) 

Neat PLC 7%*A- Cum Prf £1 -89(717*094) 
NorthcfHVt tovaetmants Ld R 0.10 - £0.12 
Northern Foods PlX «%% Cm Subord Bda 
2008 (Reg) - £87 % E2f*o94) 

Northern Foods PUB B%% Cm Sutxsd Bda 
2008 (Br £ Var) - £88 (217*004) 

Northern Rode BuBdng Society 12%% Perm 
tot Bearing Sta £1000 - £117% 8% 

Ontario A Quebec RaBwmy Go 6% firm Oeb 
Slk(MGMbyCP.)-£SO<» 

Orbta PLC Old Ufa • 23 (221*004) 

RocMc Gas A Bauric Co Sha of Com Slk $6 

- 822% % (227*004) 

Ranffior SecutOea fiX Wts toatai lor Ord - 

17(237*094) 

Parkland (froup PLC Od 26p - 160 
Paef 7*fgs PlX 10% Cun fif SOp - 52 
(227*004) 

fiel MdO> fiX 626% (Net) Cm CUm Non- 
Vfa Prf £1 - 88 (1«*03«) 
fiarfmtaar A CMantal Steam Nn Co 5% Cun 
PW Stk - £50 (217*034) 

PsnKM fiX 4%K Cum Plf £1 - 70 (18Na94) 
Peridm Foods PLC BpffM) Cun Cm Red Prf 
(Op -82% 

PetroAru SA. Cbd Shs NPV ^r to Danam 19 
A 10)- BF8303.19 

PManta PLC 9%% Cun Prf £1 - 88 (227*004) 
PortamoutfiASundarfand Mo w a p a - 
parafi.C1 19% 2nd Cun fif £1 - 125 
C23N094) 

PoSgSotararuat PWtouna Ld Onl R0.025 - 
S1S+35t 

PkwwOan PLC ADR (10:1) - $87.1 
fiwniar Hstatfi Gkoup PLC Od ip - 14 
RPH Ld 59% pity 8%) Cun Prt £1 - 75 

RPHLdri^K Lbn Ln Slk 2004A» - £33 
P2NO04) 

RPH Ld 9% Uns Ln Slk 98/2004 - £33 
RTZ Corporation PLC 39% ‘B* Cun Prf 
£101) (Cpn 86) - 52 4 (23NO04) 

Recta O u mulua PLC ADR CUT} - $795 

V * MO 

Rank OrganUaScn PLC ADR ptl) - S13J3 

P»W 8% 

Rackrit A Coknan PLC 5% Cum fif £1 -55 
(Z1NO04) 

Read totameflond PLC 396% (Fmty 5>j%) 
Cun Rad Prf £1 - 55 (217feffl4) 

Ratal Corportafon PLC 4925% (Fmfy 5% %) 
Cum 2nd fif £1 - 54 E2No94) 
fitafl Corporation PLC 495% prty 8%%) 
Cum 3rd Pri £1 - 61 (23NQ84) 

Rola-floyco Power EnfrinMring PLC 5975% 
Cum PIT £1 - 80% (18NO04) 

HdWtoyce Power E nglneertotl PLC 11% 

Cun fif £1 -122%&3NO04) 

Ropner PLC 11%% Cun Prf Cl - 113 
(231*094) 

ftoytfi toauanoa Kokfings PlX 7%% Cm 
Subord Bds 2007 (Br E Var) - £108% 

(227*004) 

Rugby aoup plc e% itos m sat garaa - 

£88 (217*004) 

SC&crp Shs of Com Sft a! NPV - f?3% 
P2NO04) 

SoaieH A SoakH Co PLC ADR (ST) - *7^3 

pO U^L^ 

SdtoafauyU) fiX ADR (1M) - S8% (»No94 
Sakwbitytt PLX 8% fad Una Ln Sflt - £82 
01NO04) 

Starfronlc Hdga PLC 7^Sp (NaQ Cm Gun 
Rad Prf 2(fa- 40 (231*004) 

Schcd PLC S%% Cm Cum Rad Prf 2008/1 1 

£1-72 

Sdhrodras PlX 6% % Ur* Ln Stk 97/2002 - 
£92% fl 2*094) 

8ootBah MetropoW a i fiopwy PLC 10%% 

18» Mtg Deb Slk 2018 - £10495 (23NO04) 
Severn Hvar Qosatog PLC 8% todax-Unkad 
Dab Stk 2012 (1344%) - £ 1 16% 

Shanghai Fund (Cayman) Ld Ptpg &a $091 
-S»% (227*004) 

SUM Tnmsport&TrixkngCo PLC Ord Sha (Br) 
26p (Cpn 183) -683 
SNea Group PLC Ord 5p ■ S 
Sfntrta Fhance (UK) PLC 7A76P9M) Oun 
fid fif Shs 2000 - 70% 1% 

Skta Group PLC 7%% Una LnSta 2003/08 
-£BO(22No94| 

Sfanat Group PLC ADR (3rt) - £057 

D8No04) 

Skfattn BuMng Society 12%% Pom tot 
Bearing She CJOOD - 018 % S 
SnWiNmr Court PLC 12% SubonJ Una Ln 
9k 2001 - £108% (237*004) 


Smith (WJL) Group PLC 3%% Red U/rf Ln 
Stk - £51% (227*004) 

SmithMtoa Beecham PLC ADR (5:1) - 
S32.764 

SmnhWtoe Beecham PLC/SmBWOne ADR 
(5:1} - £19 847* S 30%* 996566$ 

South Stanattahlro Wtaar PLC 9%% fid 
DabStkaar2000-Ese% 

South StafloraKhfea Water PLC 4% Penn Dab 
Slk - £40% P1N094) 

Sfefa FumaufB Mdgs PLC 11% Cum fit Cl - 
gg{22No04) 

SUndWri Chartered PLC 12%% Subord Una 
Ln SIX 2002/07 - £113% 5% (23No94) 
Staved agolmala PLC Ord Slk 20p - £7 


SutdHftLSpeokirian PLC 9%K Rad CUm Prf 
Cl 32 (22NO04) 

Swirapohn) A Sam Ld 89% Cum Prf Cl - 
100 100 

Symoncta Engtoauring PlC Ord 5p-33 
p2No»4) 

T AN PLC 11%% Mlg Dab Stk 96/2000 - 
£102 (18NO04) 

TS8 GH Raid Ld fig RM fit IpfCttas'B' 
Ptg RW Prfl - 100J6 (227*004) 

TSS Group PLC 10%% SuboW Ln Stk 2006 
-Cl 08% 9 

TSS Offshore tov Fund Ld Ptg fid fif 1p(UK 
Equity Class) - 30^21 (18No94) 

TT Group fix 10976% Cm CUn Rad Prf 
Shs Cl 1997 - 278 £1No94) 

Tata A Lyle PLC ADR (4:1) - £179 (227*00^ 
T4e A Lyta PUC 8% Uns Ln Stk 2003/08 - 

£89 (237*004) 

Taylor Woodrow PLC 9%% 1st Mlg Dab Slk 
2014 - £39% 925 % fi 100 (23No84) 
Tamassaa Gas Plpeflna Co 10% S6g/S Cm 
Uns Ln Slk 91/95 - £120 
Tosco PLC ADR (1:1) -5392 4% (23NOB4) 
rosea PLC 4% Uns Deep DISC Ln Stk 2006 - 
£63% 

Thai Prime Fund Ld fig Red fif $091 - 
SI 5-5142 1A8015 (227*094) 

THORN EMI PLC ADR (in) - £9.72 (237*004} 
Tops Estates PlX Wts to aub far Ord - 17 20 
Traftaga’ House PLC 7% Uns Oeb Slk £1 - 
85(187*004) 

Tratatger House PLC 8% Urn Ln 8tk94AB - 
£91 1237*004) 

Tratalgu House PLC 9%% Una Ln Stk 20007 
OS - £92% (217*034) 

Tratatgv House PLC 10%% Ltaa Ln Stk 
2001/06 - £97% (237*004) 

Transatlantic Holdtoga PLC B 8% Cm Prf £1 
- 90 1231*004) 

Transport Development Group PlX 9%% 

Una Ln Stk 95/2000 - £35 (187*394) 

T reforest SB, Printers Ld 6% Non-Cum Prf 
Cl - 58(227*094) 

Umpua fiX ADR (1:1} - 0585 (21NoS4) 
uregata PLC 5% Urn Ln Stk 91/96 - £82% 
UNgata PLC 8%% Uns Ln Slk 91/96 - £97 
Unfevar PLC ADR (4:1) - 6112% £17*004) 
Unkm IrrMreaBcnal Co PLC 8% Cum Prt Stk 
£1 -80 

Union toMmadonfll Co PLC 7% Cun fif Stk 
£1 - 59 

Unisys Cup Com Stk 5091 - S9% (23No9«) 
ureted Ptantallans Africa Ld Ord RO50 - 
£021 021 (217*094) 

vaux Group PLC 10 JS% Dab Sta 2019 - 
£114% (73No94) 

Vickers PLC 6% Cum(Tax Fraa To SfafPri 
Sta £1 - 66 

VOdafona Group PLC ADRDftl) - S30% % % 

% % % 

W a ddtogto n( John) PLC 42% Cm Prf £1 - 

60 P?Na04) 

WaddngtorHJohn) fiX 59% Cm fif £1 - 

76 C3*o94) 

Wagon todustrinl Htdga PlX 795p (Nta) Cnv 
Ptg Prf 1 0p - 138 40 

Walker Qmenbank PLC 6%H Cm Cm Red 
Prf 25p- 130 (ZSNoSQ 
Wrektaflbunas) PLC Ort 3p - 29 (23No94) 
waroug js.a> Group PLC 7%% Cun Prf £1 
-87%* 

Wubug (S-QJ Group PLC Cm D«d 2Sp - 
385 5(237*094) 

WtamoughstHkfoa) PLC 8%% Cum Red fif 
2006 £1 -94% (?3No94) 

Wefcome PlX ADR (1M) - S10% 

WtabFargo A Company Shs of Oun Slk 35 • 
$142% 3 % % % (21NO04) 

Wemt*ry PLC epd^OCm Cun Rad prf 1999 
£1 -57 

WMbread FAX 6% 3nd Cun Prf Sta £1 -81 
(22N094) 

Whitbread PLC 7%% UnsLn Stk 96/89 - 
£92% 

WTiHbreaif PLC 7%M Uns Ln Sta 96/2000 - 
£05 

WMfamad PLC 10%% Urs Ui SK 2000435 - 
£105% % 8 

WMecroP PLC 5.1% Cm Prf £T -55 
(227*094) 


Wfldnty PlX &7B% Ctw Cum fid 2nd fif 
2000 £1 -87(217*004) 

W*arra Hkfaa PLC 10%» Cum Prt £1 - 118 
£17*094} 

VMs Corraon Group PLC ADR (5:1) -511% 
(227*084 •. 

Wocfcornber* Group PLC 7%% Cun Prf Sta 
£1 -00(227*004) 

WOotoontoem Group PLC 6% Cum 2nd Prf 
SOI £1-50 (187*00% 

Yota Waterworks fiC NowA/lg ’A’ Old 10p - 

295 (217*084) 

YorkWtitkVMrita PLC Wfatanta to atfa for 
Ord -200 (227*004) 

Yortabte-Tyne 7bes TV Hfaga PLC Wta to 
sub fcr Old -230 

Zambia Consofidtaad Copper kttnea Wff 
Ord K10 ■ 203 

Investment Trusts 

Balfe GBrt Japan Thaft PLX Wta WSub 
Ord Shs -75 5 8 80S (237)094} 

BaMa GMkxd SUn lippon PLC Wtamita to 
sub tor Ord- 102(237*004) 

BoOa QSdrI SHn Nppan PlX Warrants to 
ata) for CW 2005 -BO 9 70 (237*00^ 
Btadm kneabnent Tluit PLC 10%% Dab 
Sta 2010- £111%. pZNoSfl 
BiWah Assets Trust PLC Equators Index ULS 
20051 Op -M8% 

Briflah Empka Sac A Grata Trwt HA% 
Dab Sta 2011- £107 

I Gearing TVua* PLC Ord 25p - 450 8 

t A Duretopmenird LdRed 
PtpBftfSaOl -$11 11(18No04) 

Ctarnente Koran Emujpig Growth RundShs 
*W(fiflUN}-S14p2No04} 

Dviaa towstnnm Trust PLC Wts to SU>- 
actfaa far 1 toe A 1 Cop - 61 (227MH) 
FkUty euapaao VWuM PLX EqUty Unted 

Uhs Ln Sta 2001 - 137 (MNoOty 
Ftetbuy Smatar Cc/a Treat PLC Ztaa Dkr fif 
25p - 184 % % 

Gartmore Britiih Inc A Gdfi Tat PLCZm Divi- 
dend fif lOp - 08% 

Gartmore Shared taplly Trust PLC Gonad 
_ Ord Inc IQp - 89 

Deb SK 1995 - £W0 C21NO04) 
HTRJraanam Su a tar i Cota Tnat PLOQtd 
25p - 100 1 2% 

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Trwt Ld Pig Rad 
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t Trust Ld Ptg Rad 
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Mhtauid A ScoBtah fisowooa PLC OW Up - 

Tlfil 9yafoma PLC Ord 3>- 33 (ZINoM 

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AiaiSbnat D rawaty Cold Oaf Htttfatd Prf 

Ztood Rxrtbrf Oub PlX CW ei - £900 




London FkWefanfW PlX^Oiillp-V*-. . 

£00235 ’ *• , 

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Barinrtauta Homes PlX Ord 25p - SDM 
oSSSSa PtaMT PLC <W £1 - E7 
B»catihaldto 0 » PtX Ord5p - 0X47 


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Buoroa# Earopaon Bcaid fiaaf Pig fid fif 

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Cuonbam PLC Old Ip - BL1 ’ 

Channel Wands Qome (110 Id Ord 6p-E0-S9 . 


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Country Gudens PLC Orel 28p - £087 - 


OBXMaDsgamer* PLC CW lOp - £3 



DaMih tons fiX 10 P - £02 (2U«fi4) 
DwtlMtay Ugtt Ratarey Ld CM £1 - £28 

(211*004) ■ - 

Orovaon rtdga PLC OnMOp - £5% 58 


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London A SI Looenca tnwatoMflt PLCOrd 
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London A St Lawrence taweetmeot PLCS% 
Cum Prf £1 - 51 (217*004) 
MoroBnGrttoMLtahAmaiCD'sTst fiXWta Id 
sub for Onl - 57(227*00^ 

New Guernsey Secutaaa That Ld Onl gp - 
102(237*004) 

Near Throgmorton TraattlSKJ) PUS 128% 

Deb Sta 2008 - £1T7 (1BNo04) 

Paribus French tnrestment Ttuat PLCSero 'A* 
Wanants to sub fcr Ord - IS (237*094) 
Ptalbas French tnveatmant Trust PLCSare 
*B* Wtarants to sub far Old - 18 (187*004) 
Schroder Korea Fund fiX Wts to Star for 
Ord(Br) - 57 

Scottish tovaafmant Trust PLC 486% Cun 
*A" Prf StK - £84 

Scottish NattanenViat PLC 8% Cun Prf £1 - 
70 (2174094) 

Soafttfi NBtfanaf That PUS TON Dob Sta 
2011 - £104% (227*004) 

Stares Hgb-YWrfing So* Co's TstVWs to 
Sub far Ord - 65 

Sphere touastmant Trost PLC FMsad War- 
rants to sub tor Onl - 3 (22N094) 

TR City of London TVuat PlX 11%% Deb Sta 
2014-C119% 

in Far East tncoma That PtX 7% fib Sta 
97/2002 - EOS 08*004 
Tamphi Bar tmreatmant That PlX 7% Cum 
fif Sta £1 -72(181*004 
Th ro gmorton That fiX 12 6(16% fib Sta 
2010- £120% (227*004) 

Updonn tov eai mm Co PlX Old 26p - S85 
(211*04) 

Wkpnore Ftoporty taues&naat Tel PLCWts to 
SUbforOnl - 25 (22NO04) 

Wttan tovoatmant Co PLC 8% Deb Sta 0809 
- £07 (217*004) 

WBen hvaabnant Co PLC 8%% Ota Sta 
2018 - £04% 5% % 


Dnwta Gas PLC Old 25p - £1% (227ta04) 

BM W fiX 7 JM 8*at) Cm Cum Rad fif 
£1 -£ 1 % 

Ewarton FooTOa* Oub C»Ld Od Sta £1 - 
£2400 (187*064) 

Ffracrost Group PLC oro lOp- 0X31 
(217*004) . 

Fbmacan totamattmal Group PLC fid ip - 
208308 

FUforw Hunea Group fiX Orti lOp - EUM 
pIMoOO 

Gtaa (Gaoig4 A Oo Ld OKI £1 - £8% 
(187*004) 

Gander HokJtaga PLC Old Ip - £DJ» 

Ookfan Roaa OommunkaBons PlX (M 1p- 
£1.42 ' ' 

flnytoprrai n i u lia n irea s mxord Ip -£0-13 


Guamaay Gas Light Co Ld Onl lOp - £1. 1X1 
(227*004) 

Guemsay Press Co Ld Ord top - £184 186 
(237*004) : 

Mtctn Oedcatad taaaranoaJRaid Old SOp - 
Cf% 

HydaVAmfl Broamy Ld V Ord El - £flJ 


TMoHbMEasOnanaFlXOKf £1 - BM 
(18N094) 

I E S Grotfa PLC Ord Itfa - £408 4JW 
nSQoupPLCOrdei -B08 
todapenent MJsh HaaMnroa PLC Ord 26p - 
E0.78S (187*004) 

Jenntogs Bma Id Old 26p - E2JB# 

Just Qoup PLC Old Ip- £08275 (187*004) 
tOafasnrt BarnnaOnO Rend Man tat AooUreta 
Bond Fd- £14832 

ratanmrt BenaonM Fund Man KB GR Fund 
.£1481 (22No0>q 

KMrerort BanscnQm) Fund Man tat Bp** ■ 
Goth toe -£2852$ - 

Lacbmaad Group PtX Ord 5p - £086 
Lamia Group PLC Od £1 - £28 p27*o04) 

La Rkbeta Saoraa Id Ord.Ei - £287 ' ' 
(22NO04 

Uteuratam tana fiX Old 6p - £0X7 
(107*004) 

Liverpool FC A Athletic Ckuonds PLCCkd £5 - 
S530 pi 7*o94) 


Satdbam NoanfataNsa fiX Cbd £1- £f38 . . . 

44-. . ..- -v.-. 

SoUtienv Vacua PLO Old lOp-SO^ ■ 

SUrey Fiaa kap>Onl£1 - £082 (23ND04) 

- TTmattaapanNOACd PlX Orel 2Sp ~S2J 
■ <2^*004) ■ s - =:-'^ ■ 

TBagtar PlX Ohd 9p --£086 p3No»4 
Tlacfcar Network PLCOntn -£8^^2.886 
Trana o naa Tkc h n ofatfae PLC Ord Ip . 0108 
. 1826 1.1 . -- 
Unicom ItanLfiX fid 25p- £087(717*004) 
V Ma Oilals i ka tanta-PtXOrt ffa-£081 ----- 
WHdtaorfl) »Oo 0%%Cun fif £1 - ELM 
(227*004) - '-; 4 .• 

Werbug Aaaat I km nrt JwaayMerauy 
taUQo(dAGaamrRt-SLB0aNa0« 
WaddefbunSecuttaa PLCWts fa sub for 
Old -£006^217*004)- ' 

Weelitlb. Ld *A* NoraV Ord2Cp - ET8.1 18 
INIndwstsr MuM MkIb.'PIX Old Up - £072 - 
You«Groi4>PLCard10p-£C«n5* - 

; ROliitWM ■; 
Bargains mariwd In mm i Bi — (nut 
fattog wflfdn «Ute 2.1 (aW)| where 
tha pdi ^ tiUnatet % ouhMstte 
UK ant nbpOMp Skated. 

Aust Ronda8oir95i2f.il) ' ’r'-:?'.-. 1 

Bdfcsat CniliiiihliAl0.191gat22.il) . ’ 

Etanic Earn Ada 10327347400 D - 

1 CanbSM' MtatogABLi447075p4.il) 
Ctyr0av>SS78819p4v11). - 

Osws20f1a.il}' 

Fukata AS1J078(24J1) •• 

XdkHm Mriag Aust A3O80ta.11) . -- . 
HayteoneM $18%(2 p4.ti) • . 

KtafityB Me* Bertred Ond fttttlB32pt.il) 
krefal MtttthflW 83(22:11} 

09 Search 36(23.11) . 

Petroleum Sac* Aust AS1888(ei .11) :. 

Pretoria Poritand 7294(22.11] 

rkUrr TTlnln i~mp Til*iC*T 1 J ) - 

Queer tov A$a3125p2 IQ- 

Riaal H9 fitge H$1 J2a2,U383*2(22.n) • 

SanaqmHOc Bee £21 %(l8.il} ' 

Vktatt Cone ABUSMOgtll) : 

‘ ayParedrolm of the Siadrl 



T 

■VI 


FT 


financial, timf s 

C o/’ii.'/'jiico. 


BIOTECHNOLOGY 
- A Revolution in the Making? 


London - 13 & 14 December 1994 

This high-level meeting will review current developments in biotechnology and 
assess future trends; consider regulatory issues and discuss the challenges of raising 
the finance needed to exploit fully the sector’s potential. 

ISSUES INCLUDE: . 

• Links between Pharmaceutical Majors and Biotechnology Companies 

• The Clinton Healthcare Reforms and the US Biotechnology Industry 

• The Government’s Role in Fostering Biotechnology 

• Is a Funding Crisis Imminent? 

• The Problem of Patents 


SPEAKERS INCLUDE: 

• Dr Keith McCuUagh 

Chief Executive, British Biotechnology 
Chairman, Bioindustry Association 

• Mr Carl B Feidbaum 
President 

Biotechnology Industry Association 

* Professor Dr Horst Dieter Schlumberger 
Biotechnology Co-ordination 

Bayer AG 

* Professor Ernst-Gunter Afting 
Chairman & Chief Executive Officer 
Rouse! Uclaf 


Mr Strachan Heppell CB 

Deputy Secretary, Department of Health 

Chairman, EMEA 

Professor Dr Jurgen Drews 

President, International Research 

and Development, Hof&nannrLa Roche Inc 

President, SAGB 

Mr Teoh Yong Sea 

Director/General Manager 

Singapore Bio-Innovations Pte Ltd 

Dr Frank Baldino Jr. 

Resident 

Cephalon Inc. 


FINANCIAL TIMES CONFERENCES 
in association with 

FT Newsletter Pharmaceutical Business News 
FT Newsletter Biotechnology Business News 
There are some excellent marketing opportunities attached to this conference, ™ n..^. 

Lynette Northey on 071 8 14 9770 For further details. 


B10TECBN0L0G Y - A Revolution in the Making? 

Please tick relevant boxes. 

Cl Conference information only. 

□Cheque enclosed for £775.50, made payable re FT Conferences. 
H Please charge my Mastercart/Vjsa witfi £775.50. 


Please return to: 

sisssr - " **“ ■*** * i 

BIOTECHNOLOGY - A Revolution in the Making? £660 + Vat 
Name MrfMre/Miss/Ms/Other 


Job Title... 


— -Dept. 


Can! no 


]□□□□□□□□□□□□□□□ Corapany 


Address. 


Name of card holder 


Exp. date ........ 


Signature... 


Tkc ataoiilNa jwi pravtae roll ta heM ky a Ml bto> ba roed to tacy ym bfme* oflT pndKtt red 
aaai by uber Biosil (fniiq oM^roia lot rrotBig puyoies. 


—PostCode .... 


Tel.. 


— — .Fax 


.XA 


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f: 

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■rm 

tr 

i=r.3= 

T 

3ar 

r 

=3 

r=a- 

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sijs e 


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MARKET REPORT 


. -*•.**,. 
:CT^ 

t--e- 


(GY 

the Making? 


IW'M 


Ghost of Christmas Past hovers over UK market 


By Peter John 

Share traders in London held their 
fire for much of yesterday as they 
awaited next week’s political devel- 
opments. As a result, the traditional 
“Friday feeling" contained more 
than its usual quota of torpor. 

But recovery on Wall Street and 
some bullish comments from one of 
the UK's leading securities houses 
were enough to raise the ghost of 
Christinas Past. 

From being 22 points down at one 
stage the FT-SE 100 closed only 3.1 
lower at 3,033.5. However, that still 
reflected a fall of almost 100 points 
on the week. In tandem, the second- 
line stocks represented by the 
FT-SE mid 250 Index ended the day 
down 0.9 at 3.480.3. 

With the US markets closed on 
Thursday and thus offering no 


TRADING VOLUME 


■ Major Stocks Yeste rday 


direction, the first part of the day 
was soggy. 

The FT-SE 100 opened more than 
seven points down as few investors 
were prepared to commit them- 
selves ahead of the Tory vote on the 
European finance bill scheduled for 
Monday - a vote of confidence in 
the government - and the Budget 
on Tuesday. What many saw as the 
“dead cat" bounce of the previous 
day unwound itself. 

Much of the early activity 
reflected socalled bed and breakfast 
deals. These large tax-related trades 
have been evident in the run-up to 
the Budget, fuelled by fears that the 
Chancellor may end a practice 
many see as nothing more than a 
tax loophole. 

The market hit a low of 3,014 as 
economists examined the latest sur- 
vey of economic trends published 


by the Confederation of British 
Industry. 

Although the survey argued that 
growth would slow because of 
increased taxes. It recorded an 
increase in manufacturers expect- 
ing domestic price increases and 
revived rate rise worries. 

Then, Wall Street opened strongly 
leading to recovery in the bond 
markets and dragging the stock 
market higher. Footsie futures also 
moved from a small discount to the 
cash market to a small premium. 
By the time London closed, Wall 
Street was showing a 30-point gain. 

Business also picked up late in 
the day with turnover reaching 
587.6m shares against 577.1m on 
Thursday. Nevertheless, much of it 
represented marketmakers tweak- 
ing their books and genuine cus- 
tomer or retail business was not 


expected to be significant. Retail 
business on Thursday stood at 
£Ubn. 

Another element nudging equities 
forward was a bullish economic 
forecast from S.G. Warburg. The 
securities house raised its estimate 
for growth to 1995 to 4.5 per cent 
from 3.8 per cent previously. 

The figure is at the top of the 
range of economic forecasts and. 
while it might appear to herald 
interest rate palpitations, it was 
combined with an argument that 
inflation w31 remain comparatively 
low. Coming on the heels of a 
change of heart from UBS earlier in 
the week the review suggested that 
pre-Christmas cheer for the London 
market might be making an appear- 
ance. 

Mr lan Harnett, economist with 
Soaete Generals Strauss Turnbull, 


commented: “Just before the Bud- 
get last year the market stood at 
3,067 and our forecast of 3,250 
looked remanding - But by the end 
of Christmas the Footsie had rallied 
to 3,418.” 

A great deal will depend on the 

government’s Public Sartor Borrow- 
ing Requirement which will be 
revealed during the Budget. If that 
is substantially reduced it could 
prompt an investment rush. And if 
growth is the buzz word then equi- 
ties could benefit at the expense of 
government bonds. 

Market features were scarce 
although the acknowledgment by 
the Halifax Building Society that it 
was In talks with Leeds Permanent 
shook up the hanking sector. And 
expectation continued that GEC 
would make an incre ased bid for 
the submarine maker VSEL. 


FT-SE-A All-Share index 


■IA7S' V" T- 

1.550 \ 

* — -W 

,1,500 ” 

t^5 , - Sw — 

aotKKFTOncMtft 


Eqdty Shares Traded 

Twnwra by vok/n« {miflcmi Exducfnfl: 

busmss and oversees turtovor- 

7,000 — 



■ Key Indicators 


Indices and ratios 



FT-SE 100 Index 


FT-SE MkJ 250 

3480.3 

-0.9 

Closing Index for Nov 25. 

_..3033£ 

FT-SE-A 350 

1522.7 

-1.3 

Change over week 

-97 .5 

FT-SE-A AU-Share 

1509.03 

-1.25 

Nov 24 

— 3036.6 

FT-SE-A AB-Share yield 

4.05 

(4.04) 

Nov 23 

_.. 3027.5 

FT Ordinary Index 

23233 

4.6 

Nov 22 

— 3078.7 

FT-SE-A Non Fins p/e 

ia27 

1*8.26} 

Nov 21 

—3121.0 

FT-SE 100 Fut Dec 

3035.0 

+1.0 

High' 

-..3126.4 

10 yr Gilt yield 

8.50 

(8-48) 

Low" 

-...3010.1 

Long gat/equtty yid ratio: 

2.13 

(2-13) 

1 *feiba-day high and low ftx week 


EQUITY FUTURES AND OPTIONS TRADING 


*t 

ASM Graft 

Abbey MnHoraft 
AftafiFtata- 
AHadOcnocqt 
Angaon Want 
Aiyas 

AiyyiOroupt 
Ai)a ABoamsT ^ 
Aooc. EMC. Ffeodst 
Assoc. BitL Parts 
BAAf 
BAT Wat 
BET 
BCC 

Bfrt* 

BPS kids. 

erf 

BTRt 

Bank of Scctiandt 

asr f 

Bfcja Cvtiat 

AWat 

Bootsf 
Bonstsrt 
Brt Afcroapacet 
BAOsti AkvaySt 
Own Oast 
BrttrfiLm 
fttahStaeft 
Brad 

BumWi Casnoft 
Bunt 

Cabin & Vlfirat 


VoL OnsMg Day's 
_ OOOi piles change 
'.000 333 i2 

WOO as 

3.000 407 -3% 

1 500 44 

1.900 553 -2*j 

550 473 -7 

952 343 -2 

1/00 2» 

3.400 200 -1 

ra M -i 

171 281 -C 

',000 BOO *2 

1.700 441 -3 

2.700 1Q3*j -*2 

550 332 *2 

202 800 +4 

11.000 417 *1*2 

040 290 -3 

10400 374 Hi* 

8400 285 41 

1400 202 -3 ! j 

2400 SB? +*2 

1/00 528 44 

2400 294 42 

105 409 4 

833 487 -2 

317 451 -1 

2400 452 48 

1400 375 42 

3400 295 — 1 *a 

284 374 -4 

9400 153 

151 183 

101 823 -e 

1.700 89 -h 

5400 378 43*2 


Catfcay Sdwreopmt 1.400 430 -4 

Cmdutf B5B 289 -4 

CQrnon COmrnt SOB 874 -2 

C«a»\fly**a 4400 202 -3 

Comm Urtonf 843 530 48 

Cootoon 1.800 243 -2 

CoinWcfct 1400 432 43 

□atnaty 499 418 -1 

DoUAjof 43 BBS -3 

Otaoni 41 185 -1 

Eastern Bectf 870 792*a +2*2 

East Midland Bccl ESQ 743 40 

Baarocorps 348 483 

EngChteaCLjya 28 348 -1 

EnfHpnasOtt 323 374 -1 

EuoawaltMs 381 259 -4 

no 308 188 

Ftaora 327 IIS -3 


Qen. AccUnntt 
Ganna Bsctf 
Gtoof 
Gtymnd 
Gnmadst 
Grand Meet 


Uorfca & Bpenccrt 
MOandt Beet. 

Modaon (Win) 
NFC 

NaMtaa BanKf 
Natom) Powwt 
Max 

North Wsti Watart 

Northern Sea. 

Nonhem Footat 

Norweb 

P eereont 

P«Ot 

POilngton 

P mwiQut 

Pmaraataff 


BankCkyt 

FteeWJ 5 CikTBfit 

Hedsndt 

RsddHLt 
HentoUt 
Reutewt 
Rais Royoet 
flftBfcSaxtaXff 

Schodast 
8codtehl Nsw.f 


smshOnui.1 

&nBh A Mephswt 

8anW BwUitan l 
SmM Bsecham iRs-t 
Mtabh. 

Saxhorn Beat 

South Vtafea Beet 


VbL Oosuy Ow’i 
000s ales etienan 

4400 153*3 +»* 

1/00 201 41 

87 399 

77 138*2 -4*a 

96 785 <5 

7400 398 -4 

780 748 48 

22 135 

24400 174 48 

3200 500 -8 

2400 408 49 

1.400 260 

2400 S29 48 

213 787 417 

321 304 

586 774 413 

663 804 -2 

8*8 810 -9 

614 180 -1 

752 547'j 43*2 

3/00 312 41 

529 975 

2400 832 42 

3J00 218 

1,800 411 41 

717 568 -4 

085 46B 43 

707 788*2 *2*3 

550 233 -9 

1400 470 

2400 178 **2 

1400 428 -2 

1400 288 41 

2.700 407 42 

23 1410 -3 

140 GOO -4 

1400 314 -3 

8400 348 

7400 108 -*J 

1200 160 -1 

1400 409*2 *3*2 

448 535 -8 

3400 608 *1 

1400 (SO -3*2 

888 220 *1 

787 448 ■/» 

8400 151*4 ♦*» 

1400 421 -2 

1400 384 -4 

312 452 

1400 770 *14 

632 767 +7 


Stock Index futures moved 
narrowty in low trading volume, 
turning modest losses into a 
small improvement after the 
early upturn on Wall Street, 
writes Jeffrey Srown. 

The FT-SE 100 December 
contract was 3036 when pit 
trading came to an end, up 
two points for a two-day gain 


of 11 points. On the week the 
contract was a net 104 points 
lower. The premium to the 
cash market was two points or 
five points under fair value. 

Volume was again low with 
6,847 contracts traded against 
7,015 on Thursday. Stock 
option volume was 20,975 lots, 
down from 26,574. 


: 100 INDEX FUTURES CUFFE} E26 par tul index potrf 



Open 

Seti price 

Change 

H*«h 

Low 

E3L vol 

Open Htt. 

Dec 

30275 

3035-0 

+1 S3 

3047.0 

3009.0 

7729 

50324 

rata r 

3045.5 

3049.5 

+1.0 

30+5.5 

30275 

847 

0828 

Jun 


3071.0 

+1.0 



0 

145 


■ FT-SE MO 2SD MOEX FUTURES (UFFq CIO par full Index petal 

Doc 3475.0 -5.0 

Mar 3512.0 -5.0 

■ FT-SE MOD 280 MPEX FUTURES (OMLX) £10 par tul Index point 

Doc 3/75. D 

AJ apart hm flgraes ■« tor prevtotra day. t Enact wfcrai shawm 


■ FT-SE 100 INDEX OPTION QJFFE) f 3032 ) CIO par hS Udax point 

2850 2800 2050 3000 3090 3100 3190 3200 

CPCPCPCPCPCPCPCP 

DK 198 * 2 11*2 W 7 19 118 29*2 B 2 48 82 >z 68 31*2 08*2 18*2 136*2 » 180 

Jan m 31 189 43 132*2 «*j 121 77*2 82 99 68*2 127 47*2 157 35 195 

Feb 237*2 40 206 U S 3 188 * 267*2 MB 88*2 111 110 88 138 87 167 49*2 202*1 

Mar 252*2 56 218*2 71 1«3 87 153 * 2107*2 124 1 Z 7 * 2 101 1 2 1 55*2 89 184*2 63*2 217*2 

Ant 252 88*2 192 ' 2 128 *j 142 179 99*2 236 

Ctffc 4418 PUB 7.779 

■ afflO STYLE FT-SE 100 MDSX OPTION flJFFE) £10 per M Max pat* 

2875 2035 2978 3025 3075 3125 3175 8225 


Quknoest 
HS8C (75p shaft 


Mngfkhsrt 
hwkSan 
Ladbrahat 
Land SecraMest 
Upon* 

Lao** Qemnft 
Lloyds Abbey 
LtoydsBonkr 
LASMO 
London Bed. 


308 

183 


5ot4h Was Water 

480 

479 

377 

119 

-3 

South West. Sara. 

543 

749 

202 

133*2 

+1 

Southern W«ar 

178 

585 

1/SO 

227 

+*2 

Stmterd Chsnat 

2300 

279 

327 

541 

-4 

Storemue 

1/00 

214*7 

1.000 

274 

-3*a 

SraiAStancat 

3300 

314 

5^00 

821 

+4 

TIN 

212 

218 

3GB 

335 

♦2*2 

TlOroupt 

1300 

388 

1^00 

516 


Tset 

1.700 

218*2 

SJOD 

387 

-8 

TanTwe 

2,100 

125 

773 

644 

-3 

Tate * Lyte 

1300 

425 

KM 

182*7 

-*2 

Toytor Wooorow 

310 

121 

146 

BIO 

-4 

Taacot 

£07 

243 

2^00 

458 

-1 

ThomaaWsrat 

2300 

484 

1300 

716 

-2 

Thom 04ft 

279 

874 

23 

328 

-2 

Tornttart 

2300 

222*2 

10300 

227 

+■+ 

ThtawrH»raf 

1300 

81 

1300 

149 

-1 

LHgpwo 

249 

348 

era 

291 

+a 

LWovarf 

2.600 

1103 

471 

167 

-a- 

IHDad Btaotaf 

1/300 

2TZ 

642 

317 


UBL Newepepets 

115 

507 

1300 

747 

-6 

Vodnfcnet 

6.700 

198*2 

3300 

433 

-4 

Wrafiuta CSQJt 

586 

B48 

123 

662 

+2 

WaicomarF 

1300 

887 

2300 

406 

+2 

Welsh tNntur 

1.100 

817 

167 

570 

+a 

WosaesWala 

146 

2as 

887 

167 


WMlbnintft 

1/00 

642 

688- 

698 

+i 

Wfcnte HJdoo_t 

537 

348 

25 

80S 

-i 

VWa Commit 

82 

148 

703 

420 

+i 


84 

138 

145 

32? 

-i 

WDtoeltyt 

818 

774*2 

3300 

684 

-10 

Ycrkahraa Bbol 

1300 

711 


DSC 

173 

13*2 132*2 23 

96 

36 

BB 

56 

C>2 

82*2 

25 

114*2 

Jn 

300*2 

34 164 O 

131 

64 

ns 

85*2 

79 

110*2 

57 

138 

Fed 


181 54*2 



124 

96 



77 

147*2 

liar 


1« 72 



134 

110 



87 

181 

Jwt 


238*2 07*2 



190*2 

136 



132 

184 


44*2 213*2 
32*2 224*2 
32 241 


Ofc 975 Rna KM * Underim Fder attn. PranS u raa tan m band on — hw a at picas, 
t Ungatal aqifey tnenta. 

■ awo STYLE FT-8E MP 250 INDEX OPTION (OMLX) dOpglii indax print 

3400 3450 3500 3550 3800 3650 3700 3750 

Dec BO 39.6 57.7 BZ2 37.1 91Z 

Ota ObbO SeflBraart griem Md so M in s aa Man ■ 440pm 


FT-SE-A INDICES - LEADERS & LAGGARDS 


Pscantago changa n stncQ Decamber 31 1893 based on Friday November 25 

agnwring. VWfcta *7.68 FT-SE IH280 -840 FT 60B MNm kata _ 

Prttng. t^par a Pag *677 Food Ittntatass -0.47 DhwsBail fcduatt* _ 


nntwBad — +4.« 

08. Eqtasiwi 0 Pred +426 

iBnd ExkacRon -158 

UacSn Bann a +1 44 

IBMcs. Food +100 

In gl — B b .. +0.71 

(ram 4 Horan - -8.78 

EBctrUty -035 

hhdb -334 


FT-SE SraaKBp o fT . 


948 144 -1b 
747 889 -1 


747 889 


YcaMita Water 

Zarncat 


174 sio 
1400 847 


m* raratas (M taon^ ta SEN) raakn jatadra u* OOpm Ttara 


HI 46 Hm- ftm arn -U1 

+426 Sen tantaJraera -8J0 

+358 Senraas -111 

+144 Cownar Gooos -463 

+ira iradr Care -10.10 

+0.71 Saraort Srances -10.18 

-a 78 FT-SE-A ATSaora -1020 

-085 FT-SE-A 350 -1059 

-334 MM I TfuSS -1078 

-175 FT-SE 100 -113 

-488 Spats. Web 8 CUSS -1157 

-483 UMkt -137) 

■556 Backsdc 8 Bsd E« -1128 

-&0S Ga natutan -1149 


natutai 


-1433 


Brasag HnarWs 

Matas. Saws 

-1657 

-1725 

-1831 

ttachaR Bata 

HonsaWd Grata — 

heaaaca 



-1832 

-1934 

— 

-2022 

-2032 


Ir'ET-;- .SE: Actuaries Share Indices 


n 

■ 

H 

masEssmm 

' 1 he UK 

Ser!e?| 

DW8 

Nova dta* Mo* 24 tt>» 23 NoaS 

vara ora. 
ago ]*» 

Em. 

WE 

rata 

Xdadf 

1« 

TQM 1994 

(rattan H0 Low 

9nCRta 

Kigti 

Mae — 

LH 


FT-SE 100 
FT-SE MM 258# 

H-SE Md 250 « to TW0 
F7-S64 3SM 
FT-CtaAp 
FT-SE ME* rat IV IMS 
FT-SE-A ALL-5HA*« 

■ FT-SE Actuaries 


TO MBIM. EXTSACmitOB) 2Bi 

12 ExtracUM MBtriasW 371 

15 04 . MB 0 MBd( 3 ) z® 

16 at eeiMion 8 pnmfip ig 

20 GBN MAWFACnBBtSpST) 10 

21 BuUkv & C 9 naucdanP 9 KE 

22 BuUiq Malta & Uwdtt< 32 } IK 

23 OwnlcalsCai © 

24 DtaaraKlad takBtiMst*Q 17 ! 

25 BactnMe 8 Bed BgdpPfl IS 

26 Biga«rin 0 | 7 l) l» 

27 EntfneBrtng. *W**a(T 3 22 

28 Print**. Paper & PcfcgCQ 271 

ZS Texffles A flppraaHTO IS 

30 COWUMBI EOOOSWri ^ 

31 HwwsriesnT) 2,1 

32 Spatb. Wines 0 000 * 10 ) 2 T 

33 Food ManMB 0 a«* 23 l 22 

34 Housdidd Goate( 13 ) 231 

36 HeaW CanCI) IS 

37 Piwnnacaukstafl^ M 

36 TabaccoQI f? 

40 santcespia 1 ® 

41 0 UWwtt* 31 fl » 

42 Laisin 5 HoM >£!9 20 

43 MaJW 39 i » 

44 ROatera. Foo(in« 

45 Retalers, GanarsH^ JS 

48 Support Semoat 41 ) 

49 TrasHpotfie “ 

51 Mia Serricffi t BMMW 7 ) 1 Z 

50 imUTlBW* ^ 

62 BedrieWlTJ* » 

64 6 * DHrtWtkWa ™ 

66 TflkC 0 Wuia*aitoU 4 | 1 * 

68 WMBP 3 I il 

S 3 urnjvu muistiaJie jg 

70 rtUMOMSIUW ^ 

71 BartUiffl r> 

73 IBurance( 17 J 

74 271 

75 iierdBiit artcW . 

77 OM RnwUpMI 5 

79 ProperTrijl) 

80 ihkESTHBIT THOSTSfITq ^ 

1S 

■ Hourly mowemen** 


FT-SE 100 
FT-SE Mid 250 
FT-SE-A 350 


30335 -0.1 30365 3027 
34805 — 3481-2 34M 

34816 -0.1 34815 3483 
1522.7 -0.1 1SZ4J7 15Z1 

I7G2.7Q 178325 1702: 

1732.45 -al 1733/2 1733J 
130053 -0.1 151028 1507J 

AU-Share 

Oafs 

Mbs 25 c hgn\ Mw 24 taw 23 

2655-27 +02 2851^6 2S335D 
3762.1 B +02 3753/5 3753.46 
262657 +02 2621.78 2589-05 
1038l7T -05 1848J2 164030 

1841.64 -OI 184258 184008 

102252 1021-99 10)995 

1821-96 -01 182180 182257 
224045 -OI 2242.70 2233.10 
173255 +02 1728.59 1732.77 
182018 -05 183473 183018 
180034 +OI 1803.14 1797.70 
229088 -04 230048 228SJD 
278095 -02 Z78759 778551 
155058 -06 155078 155542 

27T8/2 -03 272556 272453 
218355 +02 217079 219458 
Z711.31 -08 273250 27543Q 
2251.43 -04 228154 225350 
230154 -06 231389 231601 
158005 +01 158019 1SH52 

307022 307093 306030 

388 859 -08 37ZPS8 38B03B 

18902S -02 189021 1896JS 
251044 -04 2SZ755 252756 
2081.91 +02 205048 2D51/5 

2842.00 2843.13 282550 

174352 +02 173952 173149 
158039 -06 189658 180456 
150750 -03 151259 151050 

224559 224451 22Z75B 

125012 -OI 125151 124098 


383 591 2037 12222 1304/2 41525 

179 6/0 1096 127.35 130227 41BL7 

4.10 655 1757 5725 1184.15 1T783 

357 551 2553 5256 137171 SOCU 

357 557 2312 5355 13545* 206072 

455 651 17/6 555* 119359 119111 


Vera Ur. Earn. PIE Xd acf- Total 

Mw 22 1M* Ufa |M Man 


312 33614 27 AS 

1911 3382 / 27 16 
V 2 14615 24(9 

4(2 1792.70 25111 
4(2 1732/6 25(11 


«S 2 J 3 ( 2/94 
41667 1911/94 
T 770 J 2 ( 2(94 

209458 4 / 2/34 

208072 4 ( 2/94 

T 7 BU 1 2 / 2/94 


2667.10 236040 
382954 up*** 
282757 232950 
187358 179750 


15 B 515 2455 8953 107158 

3.41 5/5 22.67 0852 100014 

3.70 SL 72 21.77 96.44 108453 

252 * * 3003 106354 


+03 233457 234555 239453 245090 
+05 245450 2505.46 253041 214450 
-05 1967 X 2 1957.20 197352 2191 JO 
+05 102556 190350 197153 227050 
-05 1779.75 181151 183923 1895.70 

-01 103037 182014 1655 10 1 S 4 Z 5 ? 
-05 215007 213758 217463 227750 
-07 2 B 485 S 282222 2 B 7054 284950 

121046 120474 123051 140260 

+04 231256 231757 235008 268160 
-01 276858 Z 7806 B 28 S 012 299410 

J 84457 184028 187083 169950 

140456 140156 1*1034 171150 
+03 289445 2 B 8156 273016 286130 
- 0.1 151028 150758 153232 J 53130 


422 552 
551 5.48 

459 556 
421 4.70 
5/0 551 
4.14 658 
355 5.46 

457 151 i 

3.12 656 

454 641 

AM 7/0 

455 735 
414 7.13 

458 753 
3.98 759 
122 359 
458 659 
557 029 

131 088 
3.79 753 
043 5 X 7 
2.47 550 
075 010 
358 720 
253 053 
3.79 029 
443 026 

460 & 0 B 
3581000 

6.12 t 
4/0 013 
557 1079 


22.79 7099 94354 
2450 3057 805.73 
2256 7057 88459 
2656 8057 99858 
2252 8292 891 X 9 
1756 8158 8 B 5 Z 1 
2150 S 759 103857 
UJKft 9254 112051 
2050 81 XS 100040 
20 X 2 MM 88599 

155511250 94157 
15.18 01/7 97033 
16.14 10220 91291 
16.12 9455 9 S 357 
1529 89 LS 8 83320 
4153 40.70 92656 
165313007 987.45 
11 - 56217-07 04351 

1805 5080 935/8 
16.14 B 01 B 87650 
22 X 2 5759 1019.43 
2252 7014 969.13 
1048 58.44 104750 
1753 52.76 65410 
1003 3043 92047 
107 S 0751 68469 

4557 2003 107040 

1558 91.17 90015 
115810579 103857 
1 11952 91959 
1437 5022 82156 
759 8081 89150 


453 014 
UB 1003 
5581006 
550 US 
073 1030 
355 858 
4 X 8 454 


1258 9054 
11.4* 11539 
1U0 6135 
151812752 
71X5 S7.78 
1358 6753 
2731 4537 


273016 286130 231 138 5091 5044 91052 316481 
1532X2 153030 405 581 17.48 5091 119059 176411 


5(9 243858 
2(2 3GE&08 
519 Z3495E 
2774 *70448 

2(2 183157 
8/2 101754 
2471 178172 
8(8 223016 
2/2 17B.10 
4(2 1820/2 
2(2 173535 
M 209554 
18(3 2821.19 
472 1543X5 

24(1 2494M 
Itfl 207157 
24(1 363048 
IBn 7099.76 
16(2 2275J6 
10(1 156041 
2W8 2041.70 
7/1 312074 

19(1 184011 
272 a CQXB 
17/2 199416 
17/2 2875.11 
19(1 15115* 
4/1 1578.12 
2(2 149B.18 
3(2 ZIBU4 
1IW 113052 

2/2 210092 
308 202412 
7/1 168420 
2(2 166488 
3(2 1588J1 

2/2 1SB25B 
4(2 2B2474 
4/2 2015.77 
24(1 115182 
19(1 218051 
2/S 3582JB 

4 12 175253 
t/2 148158 
2/2 281008' 
2/2 144085 


Mgh 

31/3 288251 bWM 
12/7 410755 2(2/94 

30(3 2782/B 5(9794 

3173 304410 B7B/B0 

2BT10 223258 20104 

5(10 212S8B 16/7/87 
mo 2393X2 24/1(9* 

23(11 256042 8M4 

25/10 223157 2/2/94 

27(10 228138 4(2(94 

24(6 2011.17 2(2(94 

2876 2STOS5 378794 
4/1 30*851 18/3/94 
6711 232550 2(10(87 

24A 306850 22(12(92 
24(6 348457 19(1(94 
24/6 34B750 11/5W2 
24* 268054 19f1 (94 
5710 289114 1377794 
5(10 30(7/0 28/9(87 
176 416090 14(1(92 
2MB 473088 2971393 
5(10 2287X7 19(1(94 
5(10 3310133 2(2(94 

6/7 2M8Z 17/2/94 
27/6 334011 17/2(94 
25(4 223020 28(1/93 
6710 1934X4 29(12(93 
5(10 1860/3 2/2/84 

5(10 280556 0/2/84 

21/4 345030 >6(7(87 

24/6 278033 2/2(94 
24/6 2754,74 3Q®94 
24(6 237038 16/12® 
1/6 34B1XS 29(12/93 
27/6 2126.70 W84 


24(6 2737.13 4/2(94 

B/7 380155 4(2/94 

24fi 1624X0 2012(88 
1(6 2921X7 19(1(94 
4/J0 3751X9 2®94 
4/7 2279X5 4(2(94 

23(11 2132/0 5(969 
27(0 310451 2/2/94 

24/9 J 764,11 2 / 2/94 


131*/ 2tn« 
13703 2tn/B6 
BBU 14(1/88 
*383X9 31/12/92 
138179 31/1202 
8152 13(1374 


98020 19 / 2(88 
100050 31 / 12(85 
982 X 0 20 / 2(96 
66030 28 ( 7(96 

986.10 14 ( 1(86 

538 X 0 979 / 8 ? 

85450 9/9192 
97950 14 ( 1/86 
96450 21 / 1(86 
9 K 80 29/908 
98250 1071/57 
98558 14 ( 1(80 
973 X 0 14 /UK 
96080 24 ( 9(90 

06750 14 / 1(86 
98280 14 ( 1/86 
967.50 14 ( 1/86 

94 6 .10 14 / 1 /B 6 

927.18 21 ( 1/88 
97250 217(86 
95070 13 ( 1/86 
9 BZJP WB 6 
94458 23 / 1 /B 6 
98858 217/88 
97040 21 ( 1/88 
978 X 0 9 / 1(88 

917/0 21 / 1/88 
87010 9(1208 
93000 1 ( 2(91 

98050 14 / 1(86 
88018 14 ( 1/86 

89250 3/10186 
985 X 0 7 / 1(91 

99450 9 ( 12(86 
80250 3 ( 10(86 
924.70 1 / 5/90 

B 3 JB 13 / 12(74 
972 X 0 2371/88 
95050 23 ( 1/86 
87050 2 &W 92 
967 X 0 2371 /B 6 
B 8 Z 50 27 / 1-86 
956 X 8 1(1000 
718/8 1 S/a/82 
977 X 0 14 / 1/86 
BiX 13 / 12/74 


FT-Sfc-A ■*** . u— ia.1 5am 

Ttaaour-SEJ 350 Industry baskets 

■ FT-SE Actuaries w moimo 


BWgSCtwW" 


BEgttg gisagJg 
fr-SE TjU RUM* WcsB 
FT-8ESma»C0P_ ^ 


FT-SE UdZ50 8«h. Tiwte 31(12^5 1/12.80 Water 
13^79 FT-SE-A 350 31/12(86 682*4 Non-RnancMs 

FT-SE 100 31(12(83 1000.00 FT-SE-A Afi-Sftara 

31/12/9? 31/12/90 1000.00 Al Other 


068.1 9681 9681 

3047.8 3049.4 3050,7 

1772.1 1767.7 17BB5 

2881.0 28B5.7 3885.8 

Base Ben 

data value Equity seetton a 
29/12/89 100050 UK GBs tnctos 
10/4/82 100-00 tndax-LkiOBd 
1CV4/62 TOQOO Date and Loras 
31(12(85 1000.00 


Base Base 
date vahia 

31(12/75 100.00 
30/4/62 100.00 
31A2/77 10000 


FrffiS^P« WlttS 5 412.60 aedriew 31/12«0 ItULOO A. Other 31/1Z7B5 lOOaTO 

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toSto UU* 1 t *!S?hranp*ny- 1 ^phriHatam 0 JMra»a*nra it J»*mra hay raaaa raealraaaSd torn ora M IBM a No. 11 law. To otaraa oopra. at Bs . ur a ln ra mn ngara piaaaa 

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Halifax 
talk hits 
banks 

Merger plans by the Halifax 
and Leeds Permanent ruffled 
the banking sector with the 
stock market quick to mark 
down the big mortgage lenders 
Lloyds Bank and Abbey 
National on the news that the 
new entity would seek to 
become a listed, public limited 
company. 

Lloyds, which is absorbing 
the Cheltenham and 
Gloucester Building Society, 
shed 10 to 564p while Abbey 
National dipped 2% to 407p. 
having been as low as 404p at 
one stage during the day. 

Most h anki ng specialists 
thought the initial share pice 
responses were overdone, how- 
ever, arguing that the merger 
was aimed as much at remov- 
ing mortgage capacity as sup- 
plying the stock market with a 
bigger, more aggressive lender. 

The two societies, numbers 
one and five respectively in the 
building society pecking order, 
have combined assets of £88bn 
and are likely to have a market 
capitalisation of around £5_5bn 
when they come to the market 
- possibly some time in 1996, 
according to best bets among 
analysts yesterday. 

This would would put any 
Halffax/Leeds bank roughly on 
a par with the Abbey National 
and is likely to propel the new 
entity directly in to the Footsie 
100 index. With a 23 per cent 
share of net new mortgage 
lending, it dominates the field 
in this area, with Abbey 
National holding down 10 per 
cent and NatWest some 6 per 
cent. 


NW Water rises 

Shares in North West Water 
reversed an early retreat and 
powered ahead gaining 9 to 
529p, in trade of 2.5m, as the 
market gave a favourable wel- 
come to the group’s new part- 
nership with US construction 
services group Bechtel and 
favourable interim results. 

The deal, designed to boost 
NWW’s international water 
and waste operations, also 
involves the sale of the group’s 
engineering subsidiary and 
transferring the management 




Sovereign (Forex) Lfd. 

24hr Foreign Exchange 

Margin Trafing Fodbjr 
Co uy et & v a Prkras 
Daly Fax Service 
*±071-931 9188 
Rue 071-93171 14 
feBKfcraghraMrataaJ 
[aakaSWIWOB 


man pass serai 
HuastiEinu 

GttBDBIBT 

lb recraws a oompfmenary copy of 
Integration*] Gas Report 
contact Tony Ashcroft. 
Financial Times Newsletter*. 
Number Ok Southwark Bridge. 

London SEI9HL 
let +44 (0)71 873-3794 or 
Fax: +44 (0)71 S73-393S 

In t ei nati onal 6a» Report ijjj 
is by ntacripww 131 

onlr far £530 (UK) or 
£Sfc(U5S872(RoW) 

(7+ awes) 

b»»— + i — 

mMiUpMlii r— 


NEW HIGHS AND 
LOWS FOR 1994 

NEW HIGHS (IQ. 

eLECTBNC • ELECT EQUP J1J KMww Vi. 
BraMEERMG CQ Cotton. 1lnp|*a. 
EXTRACTIVE IMIS (1J Anglo Amot Coot 
MVesnENT trusts CD Firarang ran. h^i 
P f.. GranmravaraZboPt. RtarnraZH 
PL. 08. EXPLORATION 4 PROD 0 CfUMOtr, 
GkMal NMUta AMKUCM. Inc. Puma PAPER 
4 PACKQ {I* 8ran B . 8PHV1S, WNES 4 
BOERS (1) BtaaJoneU UmBa A. TEXTILES d 
APPAREL to Chmtetan Pttppra 
NEW LOWS POL 

BANKS (1) Kfltf NarL Hnaca 7pc PL, BUIUXNO 
A CNEIRN M AMEC 6Up PL. ANraUa. Eve. 
Reoem Crap, BUW HATLS A MCHTS 44 
Craw. Haywood WWrane. Do PL, Nracrea, 
Rranta, CMDSCALS (9 Coralrata*, K«tan. 
YataMie Ctasm. MSnmuTORS 60 
AatayraiL CraranWa. Hmmoa Lm Sravita 
Wholaaole rok+ga. Young [HJ. DMERSnED 
POLS (3) BTR WaitantB ‘94/06, Stamloy hfc, 
BJECTRNC A ELECT EOUP M CNortdB. DRS 
DNa RtA, Fonwd Qoup, TotaoKratk, 
B Kitafct« NO w BBam N*. Wagon Iran ntp 
PL BMt, VEHKLE8 (I) Select Indt, 
EXTRACTIVE BUW |4) BakynMc OoW. 
DlMWnUMu &pe Riw., 

POOD MANUF m Itailni nnrt HEALTH CMS 
tn Botmeo ran, INSURANCE W Oranatr t 
QraiaraL JB. Owl. MVESIUENT TRUSTS M 
INVEST1ENT COUPAMES (1) Guraigdono 
DevtpL Font LBSURE A HOTELS P) Pitsn 

l8fc>jrara—Riw>— *wa>48 

Rraso. Sirara & Vhw. OIL EXPLORKIION A 
PROD (l) Ml /Wnntan tax. OTWR 
FINANCIAL fl) WF, PfTTMQ, PAPBI 4 PACKQ 
(2) APL Ptfwu. PROpenv (7} BHOiy. Brt Land 
Bpc Cu. Bd. Ctotaond Tiubl Oaopn. 

Oiw dopnrara Soca. Peal MdgA, Property Tab! 
IPVT), RETMLERS, POOD (9) Dafey Form WT_ 
Shopntn. RETABBBi BOBIAL (R Boots, 
Esmk Fwitaau. Ktoaram SPHtaTO, WttESS 
aoens (f] Menydowi. SUPPORT SSTVS 69 
CRT, Mays. VMoc. TEXHLES 6 APPARB. P} 
CNdwrii hw. ReraflcuL WATB1 (1) SoUh VM 
Water. CAMAOIAN B (1* Oaten tatfta. 


of its five-year capital invest- 
ment programme to its new US 
partner. 

NWW also reported an 8 per 
cent increase in interim profits 
to £176.4m. in figures brought 
forward from next week to tie 
in with the partnership 
announcement. But the R9 per 
cent increase in the dividend 
to 8-35p was said to have fallen 
a “little short" of market 
expectations. 

Mr Richard Alderman at Nat- 
West Securities one of the 
group’s brokers who remained 
upbeat, saying: “There are 
obvious long-term benefits of a 
tie-up with Bechtel. Even if 
today's dividend is on the low 
side, the company has reiter- 
ated its long-term stance that 
dividend growth will be at 
least 6 per cent (real) for the 
next four years " 

Aside from the North West 
excitement, the mood was 
dampened by half-year results 
from Welsh Water below mar- 
ket expectations. The group 
reported a profit of £49.4m 
after exceptional restructuring 
charges of £28.5m. One 



Pool 

nod 

M 


wta* 

ttaig 

Won 

l»te 

pita 

CHWl 

Wtaii 

craw 

932 

1883 

21.71 

4032 

3530 

3879 

4032 

3530 

3878 

4032 

3530 

3879 

022 

1837 

21-45 

930 

1888 

1856 

are 

937 

1225 

931 

822 

922 

819 

825 

825 

813 

825 

825 

818 

840 

1235 

820 

846 

1225 

920 

846 

1255 

920 

846 

1225 

921 

1734 

20.72 

926 

1734 

2072 

898 

2237 

25.73 

1737 

33.10 

3808 

3818 

3848 

3837 

3818 

3840 

3837 

34.6 4 

3140 

3837 

34.84 

3849 

3837 

3*34 

3849 

3837 

28.73 

3848 

3837 

2873 

3843 

3627 

2846 

3339 

8037 

25.46 

2809 

3137 

25 /e 

2809 

3127 

027 

2800 

3139 

924 

norm 

31.88 

825 

2237 

25.75 

25.46 

2830 

3123 

25.48 

3433 

3721 

37.74 

31.83 

34K2 

4836 

9053 

5146 

4888 

eaao 

8879 

4888 

5059 

5347 

4847 

4238 

45.15 

37.74 

4226 

45.15 

2T.11 

34/3 

3731 

27.11 

3433 

3731 

an 

3423 

3721 

878 

MM 

3721 

878 

2883 

3151 

825 

TUBS 

31.51 

920 

104E 

1002 

938 

022 

022 

921 

US 

825 


g££S?. 


nMPira 
PnW Four 
unraMaiaa 


observer said: “Welsh has been 
forced to write off more than 
twice the purchase price of 
Acer since its acquisition two 
years ago. That takes some 
doing." Many brokers said they 
would be downgrading full- 
year expectations. 

VSEL bid fever 

Submarine maker VSEL 
jumped 25 to 1520p as rumours 
ran round the market that the 
expected increased takeover 
offer from electronics giant 
GEC was about to he unveiled 
early next week, possibly top- 
ping the present 1491p all-share 
bid from British Aerospace by 
more than £1. GEC itself 
dipped 314 to 274p while BAe 
extended its recent strong run. 
rising 9 to 452p for a two-day 
advance of 18. 

Insurance sector switching 
sparked a modest run in Com- 
mercial Union, pushing the 
shares up 8 to 530p largely at 
the expense of General Acci- 
dent which dipped 4 to 541p 
after what was thought to be a 
cautious note from a leading 
broking house. 

Son Alliance was the most 
active shares in the sector 
shedding 3 to 314p in 3.3m 
turnover as a large linn of 
stock - 1.7m shares - passed 
through the market. 

A two-way pull in Store- 
house, which reported favoura- 
ble figures on Thursday, saw 
the shares edge forward a half 
to 214Kp. NatWest Securities 
urged investors to buy the 
shares saying: “The rating still 
does not reflect the potentiaL 
The predictability of the num- 
bers is now being comple- 
mented by management stabil- 
ity and aggressive expansion 
[but not diversification!” 

Concern about Christmas 
trading continued to weaken 
several retail stocks. Marks & 
Spencer gave up 6 to 398p and 
Body Shop lost 3 to 209p. Dix- 
ons shed a penny to 185p. 

Fading bid hopes for Hazel- 
wood Pood, and nervous trad- 
ing ahead of Tuesday’s figures, 
left the shares 3 off at 106p. 

Profits downgradings in 
Allied Domecq before and after 
the group reported interim fig- 
ures that disappointed the mar- 
ket, continued to overhang the 
stock. The shares relinquished 
2V* to 553p. 

Analysts at NatWest Securi- 
ties suggested the shares were 
“fully valued” at current levels 


^rrir r i< 

EVDEXj 


■ CHIEF PRICE CHANGES 

YESTERDAY 

London (Pence) 

PfcgfM 

Brit Aerospace 452 + 9 

Buflais 20&+ 114 

EdipseBfinds 9%+ 114 

French Connect!* 257 + 7 

Latham (James) 194 + 17 

Phoneflnk 235 + 17 

Rothmans Uts 440 + 17 

SEET 48+4 

SeaPerfect 137 + 8 

Toy Homes 168 + 9 

VSEL 1520 + 25 


Bakyrchik 

260 - 

14 

Billam (J) 

114 - 

9 

Kleeneze 

106 - 

33 

Menydown 

86 - 

6 

Shoprite 

11V*- 

1 

Vistec 

13%- 

6 

Welsh Water 

817 - 

25 


but added: “Allied has disap- 
pointed the market through 
failures of form rather than 
content It has produced what 
will probably turn out to be 
the best performance of its 
peer group in spirits." 

On turnover of 24m shares, 
freight specialist NFC was yes- 
terday's most actively traded 
stock as the second leg of a 
spate of bed and breakfest, or 
tax-related, deals went through 
the market The shares gained 
2 to 174p ahead of the compa- 
ny's full-year results, due on 
December 6. 

British Airways added 2 to 
375p, shaking off worries about 
an increase in airport tax in 
next week's Budget and con- 
centrating on the next set of 
monthly traffic figures. Due 
December 5, these are expected 
to show an increase of 5 per 
cent for November. 

Footwear maker Pentland 
Group gained 4 to 103p in turn- 
over of 9.7m with a large line 
of stock changing hands. There 
were two deals of more than 
4m shares done at 104p and 
I05p but suggestions of a stra- 
tegic move of the cash-rich 
company fit has bank balances 
worth half its £370m market 
capitalisation) were not taken 
seriously by analysts yester- 
day. 

Tobacco group Rothmans 
International jumped 17 to 
440p, after reporting a better 
than anticipated 18 per cent 
increase in interim profits to 
£275.9m. Favourable press com- 
ment boosted giftware group 
Boilers, helping the shares add 
1M» to 20*/*p. 

^B O O Iff 


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LONDON SHARE SERVICE 


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PULP, PAPER & 
PAPERBOARD 


FINANCIAL TIMES 

Weekend November 26/November 27 1994 



High dividends cut British Assets’ reserves Sale of 

Ivory and Sime plans Nations 

to reorganise trust group 


THE LEX COLUMN 


By Nonna Cohen, 
inve s t me nt s Correspondent 

Ivory and Sime, the 
E dinb urgh-based fund manager, 
yesterday proposed a reorganisa- 
tion of its flagship investment 
trust, British Assets Trust, whose 
inc om e has been iruniffiri^ n t to 
pay the high dividends promised 
to investors. 

Under the plan some share- 
holders wOl forgo dividends for 
seven years in return for the 
right to buy more shares at a 
special price. 

Ivory and Sime will also reor- 
ganise the assets of another 
investment trust it manages. 
Investors Capital Trust 

British Assets, which owns 38 
per cent of ICT, will sell its stake. 
Together the two trusts have 
nearly aim in assets, about a 
quarter of an Ivory and Sfme’s 
investment trust assets under 

martagr p iriAnf 

“Ivory and Sime has been the 
investment manager over the 
past 10 years and is not entirely 
free of blame. Performance has 
not been up to par," said Mr 

Serbs push 
into Bihac 

Co ntinu ed from Page 1 

provoking retaliation by the 
Serbs. This tactic had eventually 
worked, they said. 

The UN was also trying yester- 
day to negotiate a ceasefire 
throughout Bosnia, a proposal 
which was approved in principle 
by both the Serbs and the Mos- 
lem-led government. 

However the two sides’ cease- 
fire terms seemed to be mutually 
exclusive. The Serbs wanted an 
indefinite ceasefire, while the 
government side - wary of freez- 
ing the msting battle lines - 
called for a three-month truce 
only. 

Mr Jo van Zametica, an adviser 
to the Bosnian Serb leadership, 
set tough conditions for the 
“demilitarisation” of Bihac, say- 
ing: “We Serbs have the legiti- 
mate right to defeat and disarm 
the . . . government forces.” 

Telekom role 

Continued from Page 1 

London, where it owns Morgan 
Grenfell, the UK investment 
house. It said the Deutsche Tele- 
kom share sale would matB a 
strong contribution' to the Ger- 
man financial market and the 
development of an equity culture. 

Up to DM9bn of the issue by 
Deutsche Telekom, the largest 
telecommunications concern in 
Europe, will be sold to German 
investors. The company also 
intends to list shares on Wall 
Street, making the choice of a US 
bank as joint global manager 
almost inevitable. 


Colin Hook, manag in g director 
designate at Ivory and Shne. 

Earlier this month, British 
Assets, which has about 60,000 
shareholders, said its net asset 
value had fallen 7.6 per cent to 
102p per share for the year to end 
September. In that time, the 
FT-SE Actuaries All-Share Index 
rose 0.3 per cent 

Mr Hook said the directors of 
both trusts bad considered sack- 
ing Ivory and Sime, but had 
reconsidered after management 
changes. It is expected that the 
chairman of British Assets, Mr 
Roger Inglis, will step down after 
37 years on the board. 

British Assets's charter prom- 
ises investors it will pay divi- 
dends each year which outstrip 
above the rate of inflation. In the 
event, British Assets has only 
been able to keep its dividend 
promise to shareholders by eat- 
ing into reserves. 

“We are now down to about 47 
per cent cover (reserves over div- 
idend expense) and it would only 
be a matter of time before our 
reserves are depleted,” said Mr 
Richard Muckert, newly 


appointed fund manager. 

Under the proposals, 16 per 
cent or shareholders must agree 
to receive no dividends for seven 
years by converting some of their 
ordinary shares to a new class of 
“growth share". 

E ach growth share will come 
with five warrants, entitling tbe 
investor to buy new ordinary 
shares in seven years at a price 
equal to British Assets' net asset 
value at the reorganisation date. 

Those who retain ordinary 
.shares can expect dividend 
'growth to continue as promised. 

Institutional shareholders have 
already indicated their intention 
to take up at least 16 per cent of 
the new shares. 

However the proposals cannot 
be adopted unless 75 per cent of 
shareholders attending an 
extraordinary general meeting 
next month vote in favour. 

British Assets shares closed 
yesterday at S4p. up l-5p on the 
day, after 22m shares changed 
hands in unusually heavy trad- 
ing. The shares are trading at a 
discount of 7 per cent to net asset 
value. 


Lira falls to fresh 
low over concern 
on pension reform 


By Robert Graham in Rome 

The lira fell to a record low 
against the D-Mark yesterday on 
fears the Italian government had 
given way to union demands an 
pension reform in order to head 
off a general strike planned for 
next Friday. 

There was also increased ner- 
vousness about the plight of Mr 
Silvio Berlusconi, tbe prime min- 
ister, who is due to be interro- 
gated - probably this weekend - 
by Milan magistrates about 
alleged corruption while be ran 
bis Fin inv est, business empire. 

Mr Berlusconi discussed the 
options open to himself and his 
embattled government in a frosty 
meeting with President Oscar 
Luigi Scalfaro yesterday. The 
prime minister's supporters 
claim the president is seeking to 
accelerate Mr Berlusconi’s dowm 
fall and replace him with a gov- 
ernment of national salv at ion . 

Despite progress during a meet- 
ing on Thursday between the 
government and the muons, the 
union leadership yesterday 
refused to call off the eight-hour 
stoppage. The unions were confi- 
dent the increasingly weak rig ht, 
wing coalition would make the 
concessions necessary to let them 
call off the strike. 

A fresh negotiating session is 
scheduled for Wednesday. This 
would follow a cabinet meeting 
called to ensure an par tner s in 
the coalition are ready to back 
the final passage of the 1995 bud- 


get through parliament Mr Scal- 
faro is understood yesterday to 
have insisted on the need to pass 
the budget before any govern- 
ment crisis conies to a ha^d anti 
to avoid instability through a 
clash with the unions. 

The concessions centre on 
removing pension reform propos- 
als from the budget and finding 
alternative sources of revenue. 
However, financial markets were 
concerned that by treating tbe 
issue of pension reform sepa- 
rately the budget would be weak- 
ened and the eventual reform 
could be watered down. The lira 
slipped to L1.039 against the 
D-Mark In late Milan trade com- 
pared with Thursday's LI, 035. 

The prime minister's position 
was thither weakened yesterday 
because of his failure to obtain a 
public declaration of support for 
himself and bis government from 
Mr Scalfaro. Mr Berlusconi had 
to deny instead that he was not 
“at war” with the president 

Also yesterday, newspapers 
published leaks from an impend- 
ing derision of the constitutional 
court on the legality of the 1990 
law on television ownership. The 
court was reported to have con- 
rinded that Mr Berlusconi’s own- 
ership of three commercial chan- 
nels was unconstitutional. If so. 
the media magnate turned pre- 
mier would have to divest at 
least one channel by 1996. 

Man in the News, Page 10 
Currencies, Page 17 


National 
Car Parks 
group 
collapses 

By Simon Davies 

The £650m sale of the company 
that owns National Car Parks 
collapsed yesterday after its larg- 
est shareholders would not 
accept the final deal. 

The sale, to Prudential Venture 
Managers and a consortium of 
venture capital backers, would 
have been the largest leveraged 
buy-out in the UK this year, and 
negotiations had dragged on for 
more than eight months. 

It is understood that Sir Donald 
Gosling and Mr Ronald Hobson - 
tbe founders and 72 per cent 
shareholders of National Parking 
Corporation (NPC) - valued the 
company at almost £50m more 
than PruVen was prepared to 
pay. 

PruVen. part of the Prudential 
insurance group, is believed to 
have offered about £550m cash, 
with a further £100m of deferred 
payments if NPC met perfor- 
mance targets. 

Both Sides gm phaclBgH tha t the 
parting was amicable. PruVen 
remains NPC's second-largest 
institutional shareholder. 

“Nothing in the due HiHgp.nce 
[the report into the company's 
finances] suggested that the com- 
pany was anything other than 
what we had thought it was,” 
said Mr Martin Clarke, a director 
at PruVen. "We were paying a 
full price, they wanted a slightly 
fuller price, and we couldn't 
make the two meet" 

PruVen 's consortium included 
Charterhouse Development Capi- 
tal, Cinven, Electra. Montagu Pri- 
vate Equity, NatWest Ventures 
and Royal Bank Development 
Capital. 

NPC's shares, which are traded 
on a matched bargain basis, fan 
lOOp yesterday to 450p. The 
shares reached 630p earlier this 
year on expectations that a deal 
could be worth up to £lbn. 

NPC’s two key operating com- 
panies are National Car Parks 
and Green Flag, which owns 
National Breakdown Recovery 
and Home Emergency Service. 

The group published net assets 
of £242m as at March 1994, but 
the car parks are valued at cost 
and analysts put the asset value 
closer to £400m. NPC made a 
£50 ,5m pre-tax profit last year. 

PruVen planned to bring in Mr 
Bob McKenzie, former BET 
finance director, as a new chief 
executive, but would have left 
the remaining management 
structure intact. 

The deal was to have been only 
50 per cent funded by debt, an 
unusually low level for a venture 
capital buy-out 

However, Mr Clarke was insis- 
tent that NPC should have suffi- 
cient capital to grow, and would 
not raise more debt to meet the 
founders' asking price. 

Sir Donald and Mr Hob6an wifi 
continue to manag e the group, 
but it is expected that they will 
search for an alternative buyer at 
a later stage. 


FT WEATHER GUIDE 


Europe today 

High pressure over the Giif of Biscay 
will bring calm, cloudy condUona to 
Fr&ice aid the south of Britain. 
Northern Ireland, Scotland, the 
Netherlands, Denmark and western 
Germany will have rain. The 
Mediterranean wiH be sunny and cky, 
with temperatures of about 20C In 
southern Italy and Spain. Tirkey and 
the eastern Balkans wffl have some 
showers, with snow on higher ground. 
Snow ok! northerly winds will 
continue In European Russia. Northern 
Europe wfli have some snow on higher 
ground and in foe north, with rain 

elsewhere. 

Five-day forecast 

A strong high-pressure area wiH move 
into western Europe from the Atlantic, 
bringing fog and patchy cloud to 
England, the Low Countries and 
France. The Me di terranean will have 

heavy rain and thunderstorms. A 
series of frontal systems arriving from 

the west will bring ran, sleet and 
snow to Northern Europe. 


TODAY’S TEMPERATURES 










' > S&iz*-' 'Y 


^.r r-r -«-wftont -M-M. Com front A A Wind speed tn KPH v a.RV;?' 4 ’ 1 


Situation at 12 OUT. TgmpgtsUwas madmuv for day. Forecast by Meteo Consult of tfie Ustherf&Kis 


Abu Dhabi 

Accra 

Algiers 

Amsterdam 

Albans 

Atlanta 

B.Aaea 

BJtsm 


Barcelona 


Maxtmun 
CflbhB 
ft* 28 
shower 34 
fair 20 
rain 12 
Ur IB 
cloudy 24 
fair 32 
Cloudy 13 
fab- 32 
sun 18 


Bermuda 

Bogota 


Budapest 

Ghagen 

Cato 

Cape Town 


Mr 

11 

Craacas 

lab- 

31 

Faro 

fab- 

12 

Cardin 

rain 

13 

RanMUrt 

tor 

5 

Canbionra 

sun 

20 

Geneva 

shower 

6 

Chicago 

doudy 

9 

Gbdtar 

shomr 

24 

Cologne 

rain 

0 

Glasgow 

doudy 

18 

Dakar 

tor 

23 

Htenbwg 

9UI 

32 

DA* 

doudy 

21 

Hetafctf 

shower 

11 

Demi 

sun 

29 

Hong Kong 

Mr 

6 

Didsal 

sun 

29 

Honolulu 

shower 

7 

Diitfn 

fab- 

13 

Istanbd 

Mr 

21 

Dubrovnfc 

sun 

15 

Jakarta 

sun 

25 

Edinburgh 

doudy 

12 

Jersey 


More and more experienced travellers 
make us their first choice. 


Lufthansa 


Kuwait 

L Angolas 

LasPfltoa 

Lima 

Lisbon 

London 

Lux. bourn 

Lyon 

Madefra 


21 Madrid 

7 Majorca 

8 Mato 

19 Manchester 

12 Manila 

10 MflBxxane 
-5 Mexico City 
29 Miami 
28 Mai 
10 Montreal 
31 Moscow 

13 Mmfch 
31 Nairobi 
25 Naples 
16 Nassau 

24 Now York 

25 Nkx 
19 Niooeta 
13 Oslo 

7 Pare 
7 Pal h 

22 Prague 


15 Rangoon 
20 Reykjavik 
20 RJo 

13 Rome 
32 5. Frsco 
32 Son t 
23 Singapore 

27 Stockholm 

10 Strasbourg 

2 Sytbiey 
-4 Tangier 
5 Td Aviv 

23 Tokyo 
17 Toronto 

28 Vtocouver 

11 Venice 

16 Vienna 
15 Warsaw 

3 Washington 
11 WBkigton 
23 Winnipeg 

4 Zurich 


dandy 39 
rein 6 
fair 29 
eun 17 
fair 12 
fair 7 
rain 31 
fair 3 
cloudy 6 
thund 28 
SU1 20 
shower 20 
fair 13 
fair 3 
snow 2 
doudy 11 
doudy 7 
fair 3 
sun IB 
sixi IS 
tak -A 
fair 6 


Yorkshire pudding 


The Leeds Permanent Building Sodety 
has proved a misnomer. If its proposed 
merger with the Halifax is completed, 
it will no longer be based in Leeds, it 
will cease to be a bunding society and 
its name will have proved less than 
permanent. The reasons for this 
extraordinary move, which will even- 
tually create a bank with assets of 
£90bn, are not hard to fathom. Tbe 
mortgage market is being forced to 
rati onalis e as building societies strug- 
gle with low volumes of new business. 
Their problems have been com- 
pounded by ever keener competition 
from the banks. 

Halifax arid Leeds ^lafm fite merger 
should provide tbe combined group 
with sufficient size to compete suc- 
cessfully . But size for size's sake is 
nonsense, and it is disturbing that 
both institutions play down the scope 
for rationalisation. They insist, for 
example, that both headquarters will 
be kept, redundancies wifi be volun- 
tary and branches will be maintained. 
The societies’ managements should be 
i mindful of the dangers id failing to cut 
costs: when the Nationwide and Ang- 
lia merged in 1987, there was little 
rationalisation for several years and 
consequently a poor return on assets. 

Members should not become overly 
concerned about the end of mutual 
status. For one thing , they will profit 
personally from the t rangfomniHnn of 
the societies to a public limited com- 
pany, as they wifi receive equity in the 
new bank. Management, faced with 
the disripUnas of running a quoted 
group, could hardly prove less 
accountable than at present The busi- 
ness may benefit too. The switch in 
status will allow Halifax to raise funds 
from wholesale markets more easily to 
fill the gap created by the deceleration, 
in the growth of deposit-taking. But 
more freedom will bring greater risks: 
the last time societies were given 
greater freedom, they charged into 
estate agency with disastrous conse- 
quences. So tbe sew shareholders will 

have to keep TnanagpmPTrt on a tig ht 
rein. 

Even if members agree to the mar- 
riage it may not necessarily be con- 
summated. The merger must clear 
some tough regulatory hurdles, not 
least of which is the Office of Fan- 
Trading. Last year the combined 
group would have had nearly 23 per 
cent of the UK mortgage market How- 
ever, given the few barriers to enter- 
ing the mortgage market and the 
opportunities for new distribution 
methods such as direct selling by tele- 
phone, the group’s market share 


FT-SE Index; 3033.5 {-3.1) 


YMd w • 

t». - . . -7 •*- - 

I'SKSi 


i i-i ~r i it i I’lVIVf 

' two- ‘ : .Ss • >;■ ' 

should not prove problematic. 

Once the group has been floated 
with an expected market capitalisa- 
tion of £8biHE9bn, it should become a 
formidable competitor. That will place 
additional pressure on banks and 
building societies. A series of further 
financial earthquakes can be expected 

to the UK, wnulatlTip aftw r thin latest 
deal, or Lloyds Bank’s takeover of 
Cheltenham & Gloucester. . . . 

Markets 

SpnHmont hag buffeted tbe T^wnfcwi 
stock market all week. In the first 
half, the plunge on Wall Street caused 
the riamagp - thmnp ti it is hard to 
argue that British equities are overval- 
ued. The ratio between bond and 
equity yields is actually below its 
average since 1970. Since Thursday, 
the market has been dogged by politi- 
cal wearies. Again, sentiment rather 
than logic bag been derisive. Not only 
is it highly unlikely that Mr John 
Major wffl he defeated in a leadership 
challenge; even if he were, it fa not 
obvious why the market should care. 

Next week sentiment could move in 
the other direction. True, political 
rumblings will continue, . until it fa 
dear that Mr Major is hnma and (fry 
on Wednesday. But provided Mr Ken- 
neth niarifg, the chancellor, can make 
himself heard above the din, he should 
have good news far the markets when 
he presents the Budget on Tuesday. 
He should be able to cut his forecast 
for next year's pubficoector borrowing 
requirement to £24bn or less. That 
sho uld be positive for gilfa, with equi- 
ties benefiting in their wake. Investors 
are already giving the government 
some credit for its responsible mcne- 


' 'tiny priicy;ja'C (yn viinring g fcafamanf qf 
fiscal polity woi^ rrinfarce its stant 
Tpg among inte rnational. inves tor s, 
partfcolariy^an toe parlous state <rf 
many other governments' finances, . 

1 The real worry fa not next week’s 
.. hizt nextyear'sBudget Mrhfajor Will 

■ beteraptedta ^ree/afa^h^iaiding, 

tax-cutting Budget .to sweeten . voters 
just before toe.- next general ejection, 
gut it is not dear that it wqtid he fa 
Ufa Oarkrfs interest to comjnrjH&ehtt 
reputation for fiscal respotefof&ty. 
The more he can reassme to raft&f k on 
Tuesday about 1995 tone, better. . - 

Deutsche Telekonr 

. The Deulsche.T^l^.pEivatlfWtfan 
wffl be big m many ways, notleastin 
the size of the fees the inve stme nt 
batiks Involved to the deal expect 'to 
mT| prt But hOW fa o*» to the 

astonishing DM4fi0m (£l8QmXfee “pot” 

. befog talked about? fa it the reward 
font thousands of hours hardworichy 
an army of highly-paid bankers, ana- 
lysts and salesmen? Or fa it a reflec- 
tion rif IwipPirfer* eftmpdWrin to tKn 
supply of global ei^ty. distribution 
services? ; ' 

Ifce answer is probably. a mixture cf 
both. Certainly,: the work put in by 
scores af . banks- on large' deals Hke 
Telekom fa wanminUi Banks also 
need to invest big sums In btdldfng a 
dfatributkm tofra^tiucture that gives 
them global reach. Ontim otfrer hand, 

the rnten ia ti wial -primary distribution 

business fa, by oil accounts, extremely 
profitable. If competition were func- 
tioning effectively, «ng would. 
price-rattingtoreducefees.': 

There are two reasons why this does 
not happen. First the industry, fa an 
oligopoly: only a handful of banks-can 
arrange global distribution, with toe 
rest, providing local feeder networks. 

- Safnnd • thnnjjh hatitoi fightfim idyfa- 

new business, they co mp ete on the 
quality of their dfatrihutian netwoiks 
rather than their fees. Sorely it fa bet- 
tor, they teR cMents, to receive the 
maxtoram. sales price for thrir equity 
through excellent distribution than 
si imp qq .-the ronwiiwiiinn but receive 
lower overall proceeds. Few thefts are 
able to resist such sales patter. _ 
Stilt the banks may not have it all 
their way this time round. The Ger- 
man finance ministry has already Indi- 
cated that it frrfanifa to drive a hard 
bargain on ft**** Such Is He prestige of 
being. involved to... the Telekom deal 
that few hanks would be willing to 
drop out, however low the commis- 
sions. 


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Battle of the super-jumbos 


Paul Betts explains how competition and new technology are changing the face of air travel 


I t was a Jesuit priest who 
introduced me to the art 
of frequent flying: “Wear 
a dog collar," he 
declared one Sunday 
from the pulpit of the Church 
of the Holy Redeemer in Chel- 
sea: “It can work miracles.” 

As one who has flown more 
than 150,000 wiffag in the. past 
year, I know, what he means. 
Wearing the cloth is only me 
of many ways to persuade the 
world’s airlines to . offer an 
upgrade to an improved class. 
A word of warning, however. 
Not everyone welcomes a 
priest in the first-class cabin. 

Dom Anthony Sntch. a Bene- 
dictine monk from Downside 
Abbey in Somerset, had settled 
comfortably into Ms first-class 
seat in full monastic robes, sip- 
ping champagne and tucking 
into the caviar en route to 
Hong Kong with Cathay 
Pacific Airways. 

“You hypocrite," said a loud 
Australian mat to him. 

“No," he replied. “I had an 
economy ticket but was 
upgraded because my brother 
Peter is the chair man of the 
airline." 

“You are a Bar as well as a 
hypocrite," snapped the Aus- 
sie. 

Frequent flyers have all had 
to develop their own tech- 


niques to survive the rigours of 
modem air travel. But they are 
having to sharpen their skills 
because air travel is set to 
become even more confusing 
as airlines adapt to huge 
changes in their market. 

Aviation is in a state of revo- 
lution as the industry strug- 
gles to achieve profitability 
and adapt to forces, of competi- 
tion brought an by liberalisa- 
tion and the evolution of a 
once elitist mode of travel into 
a mass transport system. Last 
year, more than 1.25bn people 
travelled by air. The industry 
expects the number to double 
by 2005. 

On the ground, many big air- 
ports are already saturated. 
Since the construction of a 
new airport takes up to 30 
years (for example. Munich 
which opened last year), some 
of the busiest airports such as 
Heathrow or Frankfurt may 
eventually be forced to turn 
airlines away. 

In the air, the congestion Is 
just as bad. Unless traffic con- 
trol systems In Europe and 
otter parts of the world can be 
modernised fairly soon, many 
erf the world’s busiest air lanes 
will find it hard to cope with 
the expected 5-6 per cent a year 
growth in traffic. 

It all adds up to more delays 


for passengers and heavier 
costs for airlines, which have 
accumulated losses of $15.6bn 
during the last four years on 
their International scheduled 
services alone. Although busi- 
ness is picking up, this year’s, 
profits are expected to be less 
than i per cent of the Indus- 
try’s turnover. 

While traffic is rising again, 
competition is holding down 
fares and passenger yields. As 
the business traveller has tra- 
ditionally subsidised the major- 
ity of people who fly economy, 
airlines have had to offer 
increasingly complex induce- 
ments to lure them into their 
aircraft. But they have had to 
go further. To fill their aircraft, 
they have had to extend these 
offers to the bulk of their econ- 
omy passengers. Each carrier 
wants to fill every last seat on 
its craft, almost at any price, 
but on the otter hand to max- 
imise overall profits. These 
conflicting pressures yield 
increasing opportunities for 
alert passengers, but plenty of 
pitfalls as weH 

All big airlines, even those 
which were at first reluctant, 
have bad to introduce frequent 
flyer loyalty programmes for 
business travellers; many are 
improving their airport lounge 
facilities with showers, busi- 


ness centres and, in some 
cases, fitness centres and 
swimming pools; otters offer 
free ltmmisinft services to air- 
ports, luggage pick-up or drop- 
off services, and valet parking 
at airports. 

These incentives, especially 

Airlines reckon 
that many 
who have 
accumulated 
free miles and 
other bonuses 
will never take 
them up 

for high fare paying passen- 
gers, are likely to multiply 
because airlines expect that 
only a fifth of passengers will 
be travelling in premium class 
cabins by the turn of the cen- 
tury. But you need to develop 
the eye of a detective to make 
the most of these offers. The 
inducements vary greatly from 
airline to air line , and many 
carriers will volunteer to tell 
passengers what benefits they 
ran date only if asked. 


British Airways, for example, 
offers generous free air miles 
for passengers flying across 
the North Atlantic, where one 
of the fiercest battles for mar- 
ket share is being waged 
between European and US car- 
riers. But an otter routes, the 
number of free teles Is much 
smaller. A AiZl Care paying 
economy passenger flying from 
London to San Francisco 
receives 750 free miles. If he 
flies to Hong Kong he gets 125. 

Such schemes have helped 
airlines win business but they 
are now in danger of becoming 
a serious embarrassment. Sev- 
eral million seats are now 
thought to be covered by fre- 
quent flyer schemes. If every- 
one were to take up their enti- 
tlements, the industry would 
be in deep trouble. 

Airlines, however, calculate 
that many people who have 
accumulated free miles and 
other bonuses, will never take 
them up. At present, the 
redemption rate is around 3040 
per cent, and airlines believe 
they are safe provided they 
budget for about 20 per emit 
more. But there is a dangerous 
precedent The troubles of Pan 
Am in the late 1980s were 
severely aggravated by the 
high proportion of passengers 
taking up free flight entitle- 


ments from its bonus pro- 
gramme. The famous airline 
ultimately went bust 

To same extent, the industry 
has learnt its lesson. Many of 
the incentives now offered are 
designed to encourage people 
not to take them up. Many air- 
lines have set a ttee limit (on 
average two years) for the 
redemption of free miles. Many 
impose restrictions on when 
you can fly, to avoid swamping 
their system with free seats. 
They are also increasingly 
offering passengers alternative 
benefits such as sending free 
bouquets of flowers, reduced 
car lure rates, free hotel roams 
and other gifts. 

The development of big com- 
puter reservation systems, pro- 
viding carriers with up-to-the- 
minute information on the 
booking situation of any flight 
at any time an any day, and 
the growing freedom to set 
fares is also farcing consumers 
to keep a tight watch on prices. 
Airlines call it yield manage- 
ment It means they can adjust 
prices, especially in the high 


volume economy cabin, to 
n m t- te demand. As a result, 
economy class fares in Europe 
can vary by £100-£150 an any 
given route. On long haul 
flights, the variations are even 
more pronounced. 

"If you have time, it pays to 
shop around,” advises an Air 
France official. "By making a 
few telephone calls, you can 
find very attractive deals with 
airlines as well as bucket 
shops." 

The airline scramble for mar- 
ket share has produced 
another phenomenon: over- 
booking. Zt was originally a 
product of the aviation boom of 
the late 1980s and disappeared 
as the industry went into 
recession after the Gulf War. 
But with the recovery, it is 
making a comeback. Although 
airlines are now traced to com- 
pensate any confirmed passen- 
gers who are denied boarding, 
some deliberately c ontinu e to 
flaunt the Industry's “good air- 
line practices" tn an effort to 

Continued on Page XVII 



Joe Rogaly 


T o be politically cor- 
rect may be good for 
ns, in small doses. 
This observation is 
not conv entional. What we are 
supposed to say about the pc 
tendency is something like 
“cannot stand th em " or “the 
trouble with lesbians..." or 
“beware the new censorship 
or “this is stultifying ortho- 
doxy” or, mostly, “yeugir. 

It is too simple. When good 
liberal folk like yon and me 
consider who is decidedly 
against pc, we begin to see 
same merit in it Some of th» 
antis are particularly tvotchy. 
Their knees jerk so far to the 

Right they look like one of the 
bent-metal nudes that won tte 

Turner prize ^***^2^ 
we walk with each individu- 
als? We should think hard 
before taking any such step- 
Our starting text is the 

memorandum prepared by 

John Maples for the Conserve 
tive party leaked to the 

of politically conect, Kbe«l 
minded ‘do-gooders' as “the 
main reason not to vote 

‘^’glowering susjfctai 

measured by qnaWaHm 

W ~LVrasearch into the opm- 

Swsff-lSi 

£5 ‘Sr 


All present and correct 

Why we abandon restraint in the use of language at our peril 


Tories, shock troops for Mich- 
ael Portillo or Alf Garnett. 
They say the same sort of 
thing as do the natural 
authoritarians identified in 
the British Social Attitudes 
surv ey described here last Sat- 
urday. They may reflect the 
opinions of as much as 40 per 
cent of the electorate. 

These are in no way pc. 
Respondents to the Maples 
tn eirinranfiii'm expressed “very 
right wing views on crime and 
immigration; deep disapproval 
of ‘scrounging’ on social secu- 
rity" and “deep fear of loony 
lefties'”. These are mists and 
fog patches in which lurk 
hangers and Coggers, xeno- 
phobia and homophobes, puta- 
tive bullies who tremble in 
fear at changes they do not 
understand in a world they do 
not like. We broad-minded cos- 
mopolitans must take care. 
The party that meets their 
dreams would probably sweep 
the country. 

Or would it? On Thursday 
Patrick NJChoHs was forced to 
resign as vice-chairman of the 
Conservatives. The MP for 
Teignmouth had made an 
error. In an article in the 
Western Morning News he 
described the French as “a 
nation of collaborators", the 
Germans as “warmongers” 
and lesser members of the 
European Community as “beg- 
gars". Mr Nicboils misjudged 
the level of bigotry to which it 
is safe to descend in print He 


offended Conservative political 
correctness. 

Other famous Tories have 
done the same. Enoch Powell 
lost his place in the Conserva- 
tive party firflowing his “rivers 
of blood” speech. The late 
Nicholas Ridley had to leave 
the cabinet after writing an 
article in The Spectator maga- 
zine in which he expressed 
views of the Germans with 
which Mr Nicboils might well 

Freedom to 
say what we 
like does not 
absolve us 
from possible 
consequences 

have concurred. This week the 
same journal carries a letter 
accusing its editors of bring 
unable to distinguish between 
"racist cant” and "thoughtful 
commentary”. 

It is signed by 15 luminaries 
of the film world, including 
Kevin Kostner, Kirk Douglas, 
Charlton Heston, Frank Man- 
cuso, Steven Spielberg, Barbra 
Streisand... you name a name, 
it is there. The 15 object to a 
recent article by William Cash 
in which he asserted that most 
of the members of Hollywood’s 
“New Establishment” were 
Jews. The editor says that Mr 


Cash’s use of the word “cabal" 
was “unfortunate", but has 
otherwise published a pro- 
longed defence of the original 
piece. In passing, he observes 
that two years ago Mr Ferd- 
inand Mount, editor of the 
Times Literary Supplement, 
wrote that he had found, in 
The Spectator, articles “of an 
astonishing sourness attack- 
ing the Italians, the French 
(twice), the Swiss, the Greeks, 
the Poles, the Russians, the 
Germans...” 

1 am not surprised. The 
Spectator is a stimulating cur- 
rent affairs weekly, not to be 
missed, if only for its cartoons. 
1 always pick it up first, yet 
over the years 1 have felt the 
same wipacp as has Mr Mount 
The house journal of the Brit- 
ish right sometimes appears 
not to comprehend that there 
is indeed a potential connec- 
tion between verbal disparage- 
ment and actual discrimina- 
tion. Freedom to say what you 
like, which 1 would defend 
with the best of them, does 
not absolve any of us of the 
need to consider the possible 
consequences of our remarks. 

This is not to say that we 
should all now become abso- 
lutely politically correct. 
Never. The phrase embraces 
most of the manifestations Of 
contemporary social ferment, 
including militan t feminism, 
coercive campaigns against 
smokers, an illiterate rejection 
of works by “dead white Euro- 


pean males”, and absurd 
attempts to tailor the English 
language. You would have to 
be very intellectually chal- 
lenged to swallow even a 
tenth of it 

Yet the motivations oE mod- 
erate purveyors of pc are not 
always malign. In Johannes- 
burg in the 1950s there was 
much debate among white edi- 
tors about what to call black 
South Africans. Your political 
position was defined by 
whether you preferred the 
derogatory “kaffir”, the conde- 
scending “native”, apartheid’s 
“bantu" or the civilised “Afri- 
can". The history of the 
spread of white acceptance of 
blacks as equals may be 
traced in the dwindling usage 
of the three offensive words. 
In the course of bis lifetime. 
Nelson Mandela has been 
called all four. 

The women's movement 
could doubtless produce a sim- 
ilar analysis of the etymologi- 
cal history of the feminine 
gender. Disabled and handi- 
capped individuals may like- 
wise attest that crude termi- 
nology represents the thinking 
of an unkinder age. I do not 
propose excessive virtue here. 
The transference of phrases 
once confined to lavatory 
walls to the front of printed 
T-shirts is an example erf what 
happens when restraint is 
abandoned. Such obscenity is 
tedious. But language that 
assaults groups can be lethal 


CONTENTS 



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sinking feeling III 

Howto Spend it on 

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Gardening: Warm 
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Fashion: The growing 
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designers VI 



Wine: Jands Robinson 
picks some Christmas 
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America's past XIV 

Art»- XK.XXH 

mr-mn 

Bridge, Chess, Crossword _ XXII 

FaaMan , W-VH 

Food A Print — X-XM 

Gardenbie XVB 

How To Spend H: IV-V.VW-IX 

James Morgan XXIV 

Mofevfaa XVU 

Perspective* B-w 

Propel l y . - XVI 

Sma* Bmrin oresn K 

Sport XVM 

•newel XIV 

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n WEEKEND FT 


Tales from London’s rebuilt 

Peter Marsh went for a walk in Docklands and found a world transformed. But have title changes been for thie ..-better? 


T his summer I was given 
an unusual assignment 
to design a series of 
walks through London's 
formerly derelict dock 
sites. The commission ramg from 
the London Docklands Development 
Corporation which believes tourism 
can lift the Docklands economy. 
“The trouble is that when visitors 
get here, they often don't have a 
due as to which bits are worth see- 
ing: youU nhang p that ," I W3£ fold. 

In the past decade, a forest of 
office and housing blocks has 
sprung up from the relics of Lon- 
don's old docks. For 150 years until 
the 1960s, the area was one of 
Britain's industrial hubs. In the 
1930s its docks and associated busi- 
nesses employed 100,000 people. In 
the aftermath of the docks' closure 
in the 1970s the area became a 
wasteland, but in recent years it 
has been transformed. Not everyone 
believes this change has been for 
the better. 

I called on Sir Peter Levene, 
chairman of Canary Wharf, Dock- 
lands' £L5bn flagship development 
It has 5m sq ft of office space. Its 
800ft high tower, the tallest in 
Britain. «witain« gnnug h marble to 
cover a soccer pitch. Sir Peter 
looked out of his SOtb-storey office 
and said: “fifteen years ago Dock- 
lands was a dump. Now it feels like 
a district of central London and it's 
a wonderful place to work.” 

John Fox, a 37-year-old sculptor, 
is less upbeat On the balcony of his 
19th floor flat in the unattractive 
local-authority Barkan tine estate. 
Fox said: *Tve lived here 11 years 
and watched something new go up 
virtually every day. A lot of the 
architecture has been execrable. 
The developers tried to build a new 
Jerusalem, but they've created a 
monument to themselves. What the 
local people have got out of It is 
questionable." 

In 1985, the corporation talked air- 
ily about its plans: “Docklands will 
be rare among new developments in 
post-war Britain for having indus- 
try and commerce, housing and lei- 
sure facilities, co-existing instead of 
being kept apart. In consequence 
local people will be able to live, 
work and play in the same area. 
The sterility of so many develop- 
ments elsewhere . . . will have no 
place in Docklands." 

The corporation was established 
as a Tbatcherite vehicle two years 
after the former Conservative 
leader took power. It effectively 


became a monster estate agent, buy- 
ing land either from the private sec- 
tor or from public authorities and 
sailing it to the highest bidder. It 
hoped the area would be trans- 
formed by private money and the 
laws of the market The inflows of 
wraith would trickle down to the 
gristing population, with new and 
old interacting harmoniously. 

Using a mixture of tax conces- 
sions, loose planning controls and 
unbridled hype, the corporation has 
levered £6bn of private investment 
into the area for a public outlay, 
according to the corporation's fig- 
ures, of £L6bn. But little has trick- 
led down. The harmony has turned 
out to be discordant 

The gleaming Canary Wharf is 
one leitmotiv of Docklands, but 
another is Beckton Gasworks, on 
the eastern fringe of the area. Once 
the world’s biggest gas plant Beck- 
ton is now half demolished, a surre- 
alist array erf vast con Crete blocks 
l ean in g at crazy angles and sitting 
on land grossly contaminated by 
industrial chemicals. Although 
plans exist to turn the land into a 
retail and Industrial park, the site is 
effectively abandoned. Market 
forces are powerless to bring it into 
the 21st <w M u r y- 

The brave new Docklands world 
has turned out to be a mish-mash of 
ideas and experiences, a mixture of 
ambition and alienation, achieve- 
ment and angst, City slickers jum- 
bled with Clockwork Orange. The 
area has been changed without a lot 
of thought for the people living 
there. The changes have been all 
the more difficult for those resi- 
dents of the Isle of Dengs, a wedge of 
land trapped in a loop of the 
Thames, who have lived there since 
before the redevelopmait. 

The people here, mostly former 
dockers or industrial workers and 
their fomflies , and comprising prob- 
ably about a tenth of Dockland's 
total 65,000 population, have a pecu- 
liar insularity. The Isle is cut off 
both geographically and socially. It 
has been a recruiting ground for the 
racist British National Party. 

The Docklands dream was sold 
to these people on the basis that 
they would benefit," said Nick Hbl- 
tam . vicar of Christchurch on the 
Isle of Dogs. “A lot of them feel let 
down.” 

Such sentiments are evident on 
the 1960s Samnria Estate, a group of 
local-authority blocks about a mite 
from Canary Wharf. Housing offi- 
cers know of at least three drug 


■■■ 

***** - 
■y. . 



thought I was bright enough*. 
Helped by a secretarial course^ 
now works there as an office dat 

for Drake & ScuD, a Wg engtoeeihig 

contractor. ’It’s a dream come:- 
troe,” she said. '-v.,- 

• ■ Janice Devereux, another •_ 
who J is contracts co-ordinats^JtiJ. 
'Encana, ; a TV and-Mecranihi^m»-. 
tfems company on the 
said many residents take too ;rog|a - 
: view. of the past ‘Tn.thffiseo^re .. 
had the docks and nothing else. 
What’s happened has been, fte/fha . ' 
better." Sharon. ’ Smftifc JuT 
>wter " who three years ago aet 
im A&B Couriers, -i dehray/*^ : 
vice^sakL- “Sitting back andimah- 
iug doesn't get you apywfera-ar^ _ 

As for foe new wave of DoekXmda : ’■ 
ompiny grsr Peter CarfiehLa director : 
of adveitising ageney’ %i^’.rf.- 
Vflf Fw and chairman efthe Dm- " 
member DocWanifc Btrinera C&ft ■ 
more of them will takeufi 
- locate as they become more eefab- 
Kshed ta the area. But GennySut- • 
fTtfTP. placement officer at the Dock- / 
lands information technology 
centre, a training agency ftmded >y : 
! the corporation and. central govern- . 
ment, said too few of the new 
employers had tided jtotmdeKfamd. 
the tohool leavers who /passed 
through her centre. TNot enm^erf 
them seem to realise. weSO anEast 
En training agency rather than an 
extension of Boedean [the gtrfe* 
public sdioolL” shesaid. 

- Physically and socially. Dock- 
lands is a long way fixtta_ftdffiBing 
some of the early visions. Jt may 
take a decade more for the area-to: 1 
get “We've seen the start'af physi- 








Tin bravo new Docklands world tas i 


dealers on the estate. Muggings and 
car thefts are common. Millions of 
pounds are needed for improve- 
ments such as electrical rewiring 
and replacing worn-out concrete. 

Brian Poole, a Docklands resident 
for 17 years, sat in his sparsely fur- 
nished maisonette on the estate and 
said: “The new developments have 
passed the local people by. They’ve 
brought in a lot of yuppies, people 
with mobile phones and Ffiofaxes 
who have nothing in common with 
the area. As for jobs, I hardly know 
of anyone who's benefited.” 

Another long-term resident 
paused white fishing in the Thames, 
putting down his can of beer long 
enough to gesture towards Canary 
Wharf: “It’s all shit I wish the IRA 
would blow it up.” 


I out to be ■ mi sh -mash of ideas and 


Many of the Thames-side views 
and those of the old docks are mag- 
nificent but a lot of the buildings 
are a messy jumble, in keeping with 
the unplanned way in which the 
docks have evolved since the first 
were dug early last century. In 1879, 
Joseph Conrad described Docklands 
as a “a thing grown up, not made”, 
whose buildings were “confused, 
varied and impenetrable”. 

The area buzzes with entrepre- 
neurial activity. More than 2,000 
companies operate work in Dock- 
lands, double the number 10 years 
ago. Recent incomers include bine 
chip namas such as Morgan Stan- 
ley, Credit Suisse First Boston and 
Texaco. But there is disagreement 
over how many new jobs have been 
created since 1981. 


a mixture of gnbBlon and aBeoatfon, acW evwnwrt and angat m%mn ood 


The corporation says this is 
28,000. doubling the area’s jobs 
total Critics such as the Docklands 
Forum, an umbrella group of local 
community organisations, point out 
that most of these “new” jobs - 
which have been predominantly 
white-collar - have been relocations 
from elsewhere. Allowing for job 
imports and those lost as traditional 
industries dosed, the net number of 
new work places in Docklands may 
only be a few thousand. 

Also contentious is how many 
local people have filled the new 
employment places: no one knows 
the exact figure, but it is unlikely to 
be more than 2,000. Unemployment 
in Docklands is around 20 per cent, 
well above the average for London. 

Mifthaaf Pickard, since 1992 the 


c o rporation's chairman, acknowl- 
edged the frustration of many local 
people but said it is difficult, to 

fni-lA* «Tit<t while mmy “have diffi- 
culty leaping the educational bar- 
rier to white collar jobs". The corpo- 
ration has put £18m into local 
training projects over the past 
seven years to supplement the 
efforts of other agencies. 

Critics say the corporation's 
efforts an t ra i ning have been too 
little, too late - and that it has put 
insufficient resources into attract- 
ing light industrial jobs more 
directly suited to locals. But there 
are success stories. Tammy Read is 
17 and has lived mi the tele of Dogs 
xrnna she was five. Ever since she 
saw Canary Wharf go up, aha 
wanted to work there “but I never 


ation will take a lot longer, 1 * add 
one corporation cffidal ' 

Ted Johns, a former btfxHmcouhr 
dllor, is a critic of the craporatian. 
Bat he. ranuflni. op timistic flat - flu 
area wm came alive: “We’vebeen 
hit fay a maetetrom; ff s heen a bit 
tike the Blitz. But we’re dusting 
ourselves down and will carry mi - 
we are tiiat kind erf people.” 

Peter Wade, ah ex-docker and, 
since 1988, community relations 
manager for Canary Wharf, said: 1 
grew up in the docks but I cant 
keep the attention, of my grand- 
children in shjjpsformqre than two 
Tnrnntaa/ We'vegot to adapt to thie 
new industries — that’s the foture." 
M Aset of leaflets describing Dock- 
lands walks ‘is available free from: 
London Docklands. Visitor. Cadre, 3 
L t meh a rira u r, London E14 9TJ tel 
071-512 111L Send an SAK 






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I d August 1991, after 10 
successful years in sales 
and marketing, Diane 
Glass decided she needed 
a change. At the and of a work- 
ing week she went out and 
spent £4,500 on a customer 
mailing list and a large fridge/ 
freezer. These, she said, were 
her passport out of commuting. 

These were the assets of 
Meat Matters a company that 
had been founded the year 
before by two of (Bass’s neigh- 
bours, mothers concerned 
about the quality of the British 
meat they could buy for their 
children. BES, “mad cow dis- 
ease”, was rife. It seemed to 
them that the most practical 
and obvious solution was to 
establish a link between pro- 
ducers of safe, organic meat 
and interested, concerned cus- 
tomers such as their families 
and friends. 

Meat Matters initially did 
not develop beyond a hobby 
and when one of the founders 
decided to move out of London 
the business was put up for 
sale. Glass, who had worked 
for Burton Group, as manager- 
ess of Top Shop in London's 
Oxford Street and as account 
director with design company 
Fitch, heard about the sate on 
a Friday night, visited the own- 
ers and bought it the next day. 

By the week before Christ- 
mas 1993, Glass realised that 
she had built up a substantial 
business. That week accounts 
for 14 per cent of the compa- 
ny’s annual turnover. To meet 
aU of her customers' orders. 
Glass, four months pregnant 
with her third child, seconded 
Mel, her husband, from his 
computer business. They spent 
three days and two nights 
without sleep packing and 
delivering orders. Glass hopes 
that, with better planning, she 
can avoid a repetition of such 
"organised chaos" this year 
when she will be delivering at 
least 250 organic white, bronze 
and Norfolk black turkeys. 

On the Monday after she 
bought the company, Glass sat 
down and started calling round 
her mailing list “My previous 
experience in sales and mar- 
keting came in useful. R unning 
a shop Instilled m me a respect 
for customers. Working later in 


direct sales ensured that I 
didn’t become despondent even 
after making 50 calls without 
making a sale.” 

Gradually, the business grew 
and (Hass’s week fell into a 
pattern. Most of Saturday and 
Sunday were spent on the 
phone, pursuing orders: Mon- 
days were spent assembling 
the orders, and Tuesdays col- 
lating and passing them on to 
the five organic forms (all 
approved by the Soil Associa- 
tion) which are her suppliers. 
On Wednesday the meat 
arrived at her house and was 
repackaged. On Thursday 
night and Friday, Glass deliv- 

Large 

refrigerated 
lorries no 
longer arrive in 
Glass’s street 
at 5.30am 

ered the orders around Lon- 
don. On Friday night, “I 
slumped down with a large 
glass of wine”. 

The financial side was 
straightforward. There were no 
borrowings and few overheads. 
AH the meat - organic or free- 
range beet pork. Iamb, venison 
- is bought on 
monthly credit from the forms 
out Glass is paid on deliver? 
by her customers. 1 

. The difficult task is convinc- 
mg the customer to buy, par- 
Igukrly for the first tiSe. 
“Putting out price lists simply 
doesnt work because organic 
meat teed without additives is 
necessarily more expend 
tiwn meat bred on intensive 
factory Hanning methods. 

“Also most people ^ ^ 
to buying meat over the 

counter where they can see™ 

have to vary my galea pitch 
each ^Mk buUd up a reiS 

ship over the phone irtthaU 
my customers, which I enjoy 
enormously.” 

k 1992a competitor. Natural 
Fopds, collapsed and Glass was 
able to buy its mailing Het 
£500 which immediately dou- 
bled her turnover. Over the 


' past three years turnover has 
risen steadily from £S&000 j£b 
£86,000 to Its current £mj»- 
maintaining an 18 per-emrf 
gross profit margin. 

At first, Meat Matters was 
based in the Glass's bedroom 
an a spare table with aisepav. 
rate phone line and answering 
machine. By the beginning of 
1994 it had outgrown the Glass 
household and Glass struck up 
a working relationship with tr 
lo cal bu tcher. He takas all the ' 
deliveries into his shop amt 
prepares the orders to Meat 
Matters’ specifications. This 
allows Glass to buy larger cuts 
of meat which means some 
savings. In turn. Glass pays 
the butcher £200 per week if 
weekly sales are more toah 
£2jOOO or 8 per cent of sales ff 
they are less than £ 2 , 000 . 

This means large refriger- 
ated lorries no longer arrive in 
Glass's street “My neighbours 
have been very supportive. 
Only one complained, quite 
understandably, when a deHv- 
ery arrived at 5.30am just 
before Christinas,” «hp said. 

Customers* orders are dehv- 
e red b y flour part-time drivers 
- two actors, a nanny and. a 
student - which leaves Glass 
free to make the phone calls 
and plan the company's future 
and her family’s weekends. / • 

“We tried to broaden our 


mg am two agents in u ~«~- 
and Twickenham but this 

Proved a costly mistake. 

"I’m against advertising 
because it isn’t effective for 
what we selL "has the 

rtght number erf well-informed 
customers but delivering to 
them all on time jg a major 
problem." 

The success erf Meat Matters 
has changed the way the fain- 
ay lives. "Weekends are a 
ni 8htmare as I find it .difficult 
to switch off and this fo wheal 
uiust call my customers. But 1 
®> get to spend half tenns-and 
holidays with the children 
which I didn’t before. And- 1' 
tove selling moor that is safe 
^ good for my . customers 

and, above all, I love being d? 
own boss.” 


*V, 


hr%\ \ 



■ Meat Matters, G7, WooOaad 
London Nio EllN. TeL' 
081-442 0658. 


. 

%, 



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WEEKEND FT III 


V_. * .-.l. -fc .S...., 


V *' ! '*^Xc JV 


*5o> cW 


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tetter? 


FINANCIAL TIMES WEEKEND NOVEMBER 26/NOVEMBER 27 1 994 


PERSPECTIVES 




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I t was a grim coincidence 
that the Erst comprehen- 
sive exhibition of arte- 
facts recovered from the 
Titanic opened at the 
National Maritime Museum in 
Greenwich a few days after the 
sinking of the ferry m«iiia 
The fascination sn r m im riing 
the loss of the supposedly 
u nsin kable Ti tanic , on its 
maiden voyage, was overshad- 
owed by the shock of the sink- 
ing of a modem ferry at a cost 
of more than 900 lives. The 
Titanic went down after it 
struck an iceberg off New- 
foundland on April 14 , 1912. 
Only 705 of the 2 , 22 ft passen- 
gers and crew survived. 

Timing apart, historians a nd 
naval experts see other paral- 
lels between the two doomed 
vessels. Both were designed 

and built to prev ailing stan- 
dards but both were found 
wanting. 

The Titanic was Launched 
when the number of lifeboats 
carried reflected the cubic foot- 
age of the vessel devoted to 
passenger accommodation 
rather than the number of pas- 
sengers and crew. Its designers 
added a 12 per cent safety mar , 
gin to the minimum required 
by the Board of Trade but 
there were still only en o u gh 
lifeboats for half those on 
board. 

' A more comprehensive sub- 

division of the Titanic by inter- 
nal bulkheads - a desig n Issue 
■ which is again being hotly 

debated after the Estonia sink- 
ing in October - might have 
saved the liner, some experts 

thfnlr 

> Far 73 years the Titanic lay 

undisturbed, up to two miles 
down on the floor of the Atlan- 
tic Ocean. The prospect of ever 
finding the vessel and answer- 
ing the unsolved mysteries of 
its sinking appeared remote. 

But in 1985 the wreck was 
discovered by a joint 
French-US expedition. 

RMS Titanic Inc, a New 
York-based company, was 
declared “salvor in posses- 
sion", meaning that it had 
unique rights to explore the 
vessel and raise material 
The mmpqny has since car- 
ried out three expeditions, the 
most recent in July, wring a 
submersible provided by the 
French Oceanographic 
Research Institute. It has 
raised a total of 3^00 artefacts. 
RMS Titanic is committed to 
i raising material from the 

, Titanic and putting it on gen- 

eral display. It is pledged not 
to sell any of its finds . 

Some 150 objects are on dis- 





Thinking the unsinkable 

Charles Batchelor considers the modem parallels exposed by an 
exhibition about the Titanic, which sank in 1912 


play at the maritime museum, 
include a ship’s porthole, metal 
rinrlr hpneh ntiHa and a letter 
from a manufacturer lament- 
ing the demise of the feather 
boa as a fashion accessory. 

Video footage taken from the 
submersible shows the ship’s 
rail chandeliers hanging in a 
lnitg - ahawrinripri state TOO HI and 
racks of plates. 

The chance to stage the exhi- 
bition was offered to the mari- 
time museum “out of the blue" 
by RMS, says Dr Eric Kentley, 
a curator. 

There are no plans to feke 
the exhibition to any other 
museums around the world 
though the maritime museum 
and RMS are working on 
designs to establish a perma- 
nent museum to display the 
material 

The Japanese meanwhile, 
have announced plans to build 
a frill-scale replica of the 
Titanic to act as a floating 
hotel and conference centre. 


All the details of its interior 
would be replicated although 
there would be no engines or 
steering gear. 

As the Titanic sank into the 
darkness of the Atlantic it 
broke its back and landed In 
two separate sections. When It 
hit the ocean floor the bow sec- 
tion ploughed into the mud, 
obscuring to this day the 
details of how large a gash was 
caused by the iceberg. 

“The technology exists to 
remove the sOt from the bow 
section but the problem is to 
End the capital to get the 
equipment down there,” says 
John Eaton, a historian with 
an interest in the Titanic going 
back more than 45 years. 

Recovery of material has 
been limited to the sea around 
the vessel A decision to treat 
its interior as a grave site has 
meant that no attempt has 
been made to raise artefacts 
from insidp the hull Although 
very few survivors of the sink- 



A cracked porthole 

ing are still alive "people are 
very sensitive about anyone 
going into the hull", comments 
Dr Kentley. Eaton confesses to 
finding this han "very frustra- 
ting'’. 

Although the intense cold, 
the absence of light and low 
oxygen levels on the ocean bed 


have slowed the deterioration 
of the TStenic, chemical attack 
and sea-bed bacteria have 
patm frit*) the raatai, staining 
many objects black. 

A comparison of the photo- 
graphs taken in 1988, and those 
from a descent in 1993, show a 
marked deterioration of the 
wreck, says Eaton. Dr Kentley 
thinks there may be as little as 
10 years left to continue work 
on the hull before it disinte- 
grates. 

RMS and its backers are 
keen to raise more material 
from the wreck. However, even 
if a sudden deterioration was 
to halt work, enough has been 
raised to create a powerful 
reminder of the fete of the 
Titanic, and any other vessel 
and its crew which underesti- 
mate the power of the sea. The 
exhibition, says Dr Kentley: "Is 
a timely reminder that the sea 
signs no treaties." 

■ The Wreck of the Titanic. 
Until April 2 . 1335 . 


The Nature of Things / Clive Cookson 

New conclusions 
from old studies 


Y ou are an ambitious 
medical researcher 
working cm a contro- 
versial issue - say, the 
effect of diet on cancer or heart 
disease. Several nTtninai trials 
have been published, giving 
contradictory results. How can 
you make the biggest impact in 
the Held? 

The traditional way would be 
to raise millions of pounds 
worth of research grants to 
carry out the definitive study, 
with a better procedure and 
more participants than any 
previous trial 

An alternative approach is to 
gather all your predecessors’ 
work and re-analyse their 
results, using a powerful statis- 
tical technique known as meta- 
analysis. This could lead to a 
clear conclusion much more 
quickly and at for lower cost 
than organising a new study. 

The foundations of meta- 
analysis were hid in the 1970s 
by epidemiologists such as 
Richard Peto in the UK and 
Thomas Chalmers in the US. 
They were looking for a path 
through the confusing thicket 
of data thrown up by the prolif- 
eration Of f-Hnfaal trials. 

Meta-analysis involves com- 
bining the results of separate 
studies carried out to answer 
the same question - for exam- 
ple, does eating garlic reduce 
tiie risk of a heart attack? The 
reason for pooling date is to 
iron out the chance fluctua- 
tions which can obscure the 
significance of Individual 
studies. 

The conventional target for 
achieving “statistical signifi- 
cance” is a probability of more 
than 95 per emit that a result 
was achieved through the drug 
or activity being studied, 
rather than by chance. If the 
effect is real though fairly 
small, it may not show up in 20 
studies with 300 people but it 
should give a statistically sig- 
nificant outcome in a com- 
bined analysis of 6,000 people. 

A systematic review of all 
r.Hni ral data, including meta- 
analysfs, is quite different to 
the informal reviews tradition- 
ally published in the medical 
literature. - These often miss 


important conclusions by 
looking at the evidence as a 
collection of individual studies 
and dismissing the ones that 
do not bare a statistically sig- 
nificant outcome. 

Meta-analysis made Its first 
tog impact In 1985 when Rich- 
ard Peto and Rory Collins of 
the ICRF Clinical Trials Unit 
in Oxford transformed the 
treatment of breast cancer by 
showing that a drug called 
tamoxifen improved five-year 
survival rates. 

In the cardiovascular field, it 
was not until 1988 that the 
medical profession recognised 
the ability of thrombolytic 
. “dot-busting” drugs such as 
streptokinase to save the lives 

If someone 
had done the 
meta-analysis, 
it could have 
saved half a 
million lives 

of heart attack patients. By 
than, 70 separate clinical trials 
had been carried out on a total 
of 47,000 patients. 

Yet statisticians now calcu- 
late that there had been 
enough clinical evidence to 
prove the effectiveness of 
streptokinase as early as 1973, 
when 10 trials had taken place 
with 2^00 patients - if only 
someone had (tone the meta- 
analysis. The introduction of 
routine thrombolytic therapy 
then, rather than 15 years 
later, would have saved more 
than half a million lives world- 
wide. 

It would be wrong, however, 
to give the impression that 
meta-analysis is an easy 
option. The first essential is to 
draw up clear objectives for 
the review, with criteria for 
including or excluding studies. 

Then you have to track down 
the data, which may be the 
hardest job of all Despite the 
spread of computerised data- 
bases, conducting a worldwide 
search for all published studies 


is an enormous task; there are 
an estimated 20,000 medical 
journals worldwide, many in 
foreign languages. 

But serious reviewers must 
also search for unpublished 
studies. Otherwise the meta- 
analysis may suffer from "pub- 
lication bias” - the tendency 
for researchers and journals to 
publish studies with a positive 
outcome, in preference to those 
that are inconclusive or nega- 
tive. 

Deciding which studies to 
include or exclude is fairly 
straightforward when the 
meta-analyst is looking at the 
effect of drugs. Then he or she 
can restrict the field to “ran- 
domised controlled trials" in 
which the subjects are divided 
at random into two groups; one 
tekes the drug and the other a 
placebo, and ideally neither the 
patients nor the researchers 
know which is which. 

For “observational studies”, 
examining for example the 
impact of diet, smoking or 
environmental factors on 
health, the eligibility criteria 
become harder to define and 
implement And when meta- 
analysis moves away from 
health to the social sciences, 
there is great scope for ambi- 
guity and confusion. 

Social scientists are turning 
to meta-analysis as a way of 
settling Issues ranging from 
the impact of pre-school educa- 
tion on later academic achieve- 
ment to the effect of job train- 
ing on unemployment But its 
use here is still controversial. 
Some argue that individual 
studies are too dissimilar in 
methodology and quality for 
the results to be pooled. 

Most health researchers, 
however, have embraced meta- 
analysis as a powerful new tod 
for fishing original conclusions 
out of old data. At the same 
time, they point out that meta- 
analysts does not remove the 
need to refresh the pool with 
well-designed new studies, 
such as tiie big Scandinavian 
trial of cholesterol-lowering 
drugs published last week. 
Medical progress will require a 
co-ordinated combination of 
the two approaches. 


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rV WEEKEND FT 




FINANCIAL TIMES WEEKEND NOVEMBER 26/NQVEMBEK 2?*994 


HOW TO SPEND IT 


Direct 
deals for 
phone 
addicts 


Judith Gubbay calling. . .what 
service do you require? 


A 


s the telephone 
breaks loose from 
the home and the 
office, the services 
you can call on it 


It is 9pm on Sunday. You 
have Just returned home after 
two weeks of sun-baked idle- 
ness. What is the first thing 
you do? If yon are anything 
like Jane, my friend, the first 
thing is to open your mail. The 
second is to ring your bank. 

Jane is a worrier, and one of 
the envelopes she opened 
suggested that her finances 
were not as well-ordered as she 
thought “I knew I woudn’t be 
able to sleep until I'd sorted it 
out, so I picked up the phone." 

Jane's call was to First 
Direct, the pioneer among tele- 
phone banking services. Had 
she been feeling frivolous - or 
more anxious about the con- 
tents of her wardrobe - she 
might have rung Next Direc- 
tory or Racing Green for a 
copy of their new catalogues. 

She could have called Rail- 
Direct, to order train tickets 
for her trip to Leeds at the end 
of the month, or checked on 
how her shares were doing, or 
booked a seat for the Tuesday 
night showing of The Brow- 
ning Version. 

Ordering goods by phone is 
hardly new: UK consumers 
have been summoning pizzas 
and Chinese meals to their 
homes for years. What is new 
- and growing fast - is the 
number and range of services 
available that bypass the shop- 
front and the middleman, 
using special free or cheap 
phone numbers so that it does 
not matter (to you) where you 
are calling from. Many are 
open most, if not all, hours, 
lliese, coupled with increas- 
ingly sophisticated information 
and entertainment lines, for 
which you pay a premium, 
may transform UK shopping 
habits. 

The Henley Centre's Telecul- 
ture 2000 report shows that 
more than 50 per cent of people 
in the UK are using the phone 
to organise their financial 
affairs. Some 39 per cent use it 
to buy from catalogues. BTs 
own research suggests that 
travelling, parking and 
queuing are turning consum- 
ers from conventional shop- 
ping. 

First Direct customers’ expe- 
riences hear out the other 
main attraction. "1 enjoy being 
able to pay my bills at odd 
times of the day or night - 
whenever it suits me," says 
civil servant Steven Jones. 
First Direct confirms that Sun- 
day evenings are a peak busi- 
ness time. 

Drawbacks to telephone 
shopping seem few; best 
advice, however, is always to 
keep a note of your transac- 
tions and orders. 

No directory of these ser- 
vices exists - so here, for the 
benefit of the unconverted is a 
selection of telephone services: 


FREE-TO-YQU PHONE CALLS 
Many companies charge noth- 
ing if you want to order a cata- 
logue. They quote a special 
FreeFone n umb er, starting 
with 0800 (the Mercury Free- 
call prefix is 0500). The Free- 
Fone numbers listed here are 
for placing orders (have your 
credit card details handy) and 
for inquiries. 

Lands’ End: 0800-220106. 

“Direct merchants” of Amer- 
ican-style casual clothing; 
same number for catalogue. 
Twenty-four hours, seven days 
a week (except Christmas Day). 

Laura Ashley by Post: 
0800-868100. 

Clothes and home furnish- 
ings from special catalogue; 
same number for catalogue 
itself. Seven days a week, 8am- 
10pm. 

RafiDfrect: 0800-450450. 

Tickets, reservations, price 
and timetable information; 
journeys between any UK sta- 
tions, minimum ticket value 
£10, posted first class within 24 
hours. Seven days a week, 
8am-10pm (except Christmas 
Day or Boxing Day). 

Talking Pages: 0800400900. 

Computerised directory of 
supplies of goods and services, 
nationwide, who have paid to 
advertise. Be ready to note the 
numbers. Seven days a week, 
24 hours. 

UG cinemas: 0800-888907. 

Seat reservations at any of 
UCI's 26 cinemas; 40p credit 
card booking charge; collect 
tickets at cinema. Phone 8am- 

llpm (to midnight, weekends). 
Out-of-hours answering ser- 
vice. 

FREE INFORMATION, 

LOCAL-RATE SERVICE 

First Direct: 0800-222000. 

The original telephone bank- 
ing service (now widely imi- 
tated). Many add-ons to 
straight current account han- 
dling, including ordering for- 
eign currency couriered to 
your door. All banking services 
(on 0345-100100) 24 hours a day. 
seven days a week. 

NATIONAL SERVICES, 

LOCAL RATES 

With some centralised suppli- 
ers, you pay only the local call 
rate, irrespective of where you 
— and they — are in tha coun- 
try. These Lo-call numbers 
have the 0345 prefix (Mercury’s 
equivalent, LocalCah, is 0645). 
Some of these examples use 
the same number for ordering 
their catalogue or brochure 
and ordering goods; as before, 
expect to give credit card 
details if you want to order. 

Dfilans Direct 0345-125704. 

Order books for delivery by 
courier within 15 days from 
Dillons’ catalogue (from shops 
or this number); delivery 



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charge £3 for orders under £35, 
free above £35. Phone between. 
Sam and 5.30pm; answering 
machine for out-of-hours 
orders (leave card details, own 
phone number). 

The Music Store: 0345-123123. 

CDs, tapes, LPs, post and 
packing free; computerised cat- 
alogue means they can track 
down what you want and 
advise on specific recordings: 
delivery within seven days: 
8am to 8pm, seven days a 
week. 

Next Directory: 0345-100500. 

Pioneering direct seller of 
clothes, furniture, accessories; 
£3 for catalogue (unless you 
send it back); courier delivery 
within 48 hours (large or valu- 
able items may be slower); 
delivery charge £250 per order. 
Seven days, 8am to llpm, 
answer service for out-of-hours 
orders. 

Portland Holidays: 
0345-951000. 

Biggest direct sales tour 
operator in UK; this number is 
for the brochure (your nearest 
regional number, at normal 
rates. Is the one for informa- 
tion, advice and to make book- 
ings over the phone, 9am to 
5^0 weekdays, 9am to 3pm Sat- 


urday). 9am to 5pm; answering 
machine for out-of-hours bro- 
chure orders. Eclipse Direct is 
similar. 

Racing Green: 0345-331177. 

Catalogue-based classic 
casual clothes and accessories; 
same number for catalogue 
itself; Parcelforce delivery. 
Seven days a week, Sam-lOpm. 

DOING BUSINESS DIRECT, 
FULL-RATE 

Some of the businesses that 
deal directly with their cus- 
tomers by phone, cutting out 
agents, brokers and the like, 
say that the main benefits - 
apart from convenience - is 
the lower cost 

With the following organisa- 
tions, you pay the lull price of 
the call, so have your paper- 
work to hand before you 
call. 

Direct Line insurance: 081-686 
2468. 

Car and home insurance; 
quotes given, policies taken 
out over the phone; other 
phone numbers for regional 
offices outside London area; 
payment by credit card, direct 
debit. Switch. From 8am to 
8pm on weekdays, 9am to 2pm 
Saturday. Guardian Direct is 
similar . 

Body Sbop by Mail: 
0903-733888. 

Catalogue toiletries; credit 
card telephone orders. Week- 
days, 9am to 530pm, answering: 
machine for out-of-hours 
orders. 


A brush wi 


P erfect as a present for 
the would-be sophisti- 
cate is a set ‘ of 
make-up brushes. Any- 
one who has ever had a profes- 
sional make-up knows that 
brushes are the basic tools. 

Maggie Hunt, one of 
Britain's leading make-up art- 
ists, creator of looks for Naomi 
Campbell, the Princess of 
Wales et al, has put together a 
set of brushes, each designed 
to do a specific job. 

To the uninitiated, 11 differ- 
ent brushes may seem a trifle 
excessive, but Maggie Hunt is 
convinced that the properly 
made-up face requires them all 
- from eyebrows to complex- 
ions. from lips to eye shading, 
brushes are the way to get the 
truly finished look. 

Handles are of painted wood, 
the hair fine quality and a set 
costs £95, including a smart 
leather wallet. A leaflet with a 
step-by-step guide shows the 
professional way to use them. 
Available from Harrods and by 
post (£2 extra for mail order) 
from Lion Brush. Planet Place, 
KiHingworth. Newcastle upon 
Tyne, NE12 0RZ. Tel: 091-268 
2288. 

Lucia van der Post 


•*r six 

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Wipe away the tears 

W hen Max Factor took the last solid ■ The British Designers Sale has become 
block mascaras off the shelves, fixture in the shopping lives of many a ch: 
many women were disappointed, lady who lunches. . 

A few, possibly, shed a blackened Here the canny shopper often finds lu 


Thornton's Choc Express: 
0763-241444. 

Gift confectionery sent by 
post to the address of your 
choice; order before 330pm for 
next-day delivery; ring this 
number for price-list/order 
form and to place credit card 
orders. Seven days a week, 
9am-6.30pm, answering 
machine out of hours. 

PAYING A PREMIUM 
There are premium-rate phone 
information and entertainment 
services to suit pretty well 
every taste - up-to-the-minute 
cricket scores and raring form 
guides to weather information 
and the FT’S own Cityline. 

Now that the 0898 numbers 
(and their Mercury and Vodata 
equivalents) have been cor- 
doned off from all but those 
who want "adult” services (you 
cannot get through without a 
personal identification num- 
ber), almost all the 20,000 odd 
premium-rate services are con- 
fined to BT’s 0891 (and Its 
experimental 35p-a-call 0894), 
Mercury’s 0839 (and its lower- 
tariff 0881), and Vodata’s 0336. 

If you do a ot want your 
phone used to call premium- 
rate services, ring 150 (free), 
and ask for the call-barring ser- 
vice. 

Travellers’ Healthline: 

0839 337733. 

Pre-recorded information 
from the Hospital for Tropical 
Diseases; interactive service, 
allows you to select which 
parts of the message to listen 
to. 


W hen Max Factor took the last solid 
block mascaras off the shelves, 
many women were disappointed. 
A few, possibly, shed a blackened 
tear at the loss of the peculiar “spit and slick" 
ritual which allowed them to control exactly 
how much mascara they applied to their lashes. 

Chanel has come to the rescue with a 1990s 
version of the traditional cake mascara. Le 
Regard (£29) is what Chanel terms monochro- 
matic make-up; it contains an eyeshadow, eye- 
liner and mascara in one sleek compact - and 
the right tools to create the smouldering, 
smoky eyes that the Chanel models peered 
through on the catwalk. 

To complete the look, false eyelashes with a 
difference are now available. These “One by 
One Semi-Permanent Eyelashes" (£8.95) have 
nothing in common with the 1960s variety that 
left women looking heavy lidded and drowsy. 
The new eyelashes can last up to three weeks 
and are light, waterproof, and can be used 
happily by contact lens wearers. Carmel Allen 


■ The British Designers Sale has become a 
fixture in the shopping* lives of many a chic 
lady who lunches. 

Here the canny shopper often finds her 
designer numbers at sharply reduced prices. 
Unfortunately, membership of the list for the 
women’s sale is fall but there is a menswear 
version of the designer sales at which would-be 
snappy dressers can search for bargains. 

More than as top European designers (ho, we 
are not allowed to mention names but they are 
Zn gikhj French, Italian, American and Ger- 
man) win be selling samples, ends of fines and 
surplus stock at greatly reduced prices - any- 
thing and everything from, suits, jackets, ties, 
socks, shirts and overcoats plus (curiously) a 
selection of silk lingerie to gladden the eye of 
women who accompany, the men. 

The men’s sale takes place twice a year and 
file next is on Saturday December 3 from 10am 
to 5pm at the Kensington HU ton. There is a £2 
charge at the door and only cash or cheques (no 
credit cards) are accepted. L-v.cLP. 


F irst It was the Barbour 
jacket that made its 
way from the shoul- 
ders of the hunters and 
shooters of the world to the 
city movers and shakero. 

Then it was the turn of 
quilted Husky jacket to make 
the transition from stable wear 
to status symbol The Italians, 
in particular, embraced it 
wholeheartedly. They wear 
Huskies over their tailored 
jackets, keeping the chill at 
bay in smart street caffes. 


Make way for Puffas , jj 


Now is the turn of the super- 
padded Puffa to leave the sta- 
ble and rub shoulders with its 
catwalk imitators. 

Once best-known as part of 
the Micfaelin man, the padded 
jacket has been taken up and 
reworked by top flight design- 
ers from Donna Karan to Issey 
Miyake and is now found in 
every high street store. The 
tirendiest (and cheapest) are 
from Warehouse (£69.99) and 
Miss Selfridge (£34.95) while 
Next has a good one with 


detachable sleeves in its cata- 
logue at £69.99. 

Those who prefer the origi- 
nal Pufia will find it in bright 
colours, as well as the tradi- 
tional dark blue, at around 
£90. - 

But the most exclusive and 
sought-after by far has to be 
the silvery, wadsted version by 
Gucci at £350. Definitely more 
at home on the back of a Har- 
ley than a horse. 

Carmel Allen 



NITH 


ion 


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YIAINBOVF 

Automatic clironographs equipped with the legendary "E! Prime nr 
movement by Zenith, the only one in iff category capable of 
recording short time intervals to 1/10 of a second. 

Models in gold, stem and yellow metal or steel. aiui-reflcction sapphire 
'lass, screwed down push burtons and crown, water-re sis tan c to 50 or IGfini. 


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FINANCIAL TIMES WEEKEND NOVEMBER 26/NOVEMBER 27 1994 


WEEKEND FT 


V 


HOW TO SPEND IT 


The conservatory as 
a year-round asset 

Lucia van der Post on the joys of spending the winter under glass 


T he conservatory 

first became popu- 
lar with Victorian 
industrialists who, 
as they began to 
travel, developed a passion for 
exotic blooms and exuberant 
foliage and needed to devise 
ways of nurturing these deli- 
cate plants through Britain’s 
dreary winters. 

Glass-houses were the 
answer and as glass became 
less and less of a luxury, as 
techniques for casting and 
building with Iron developed, 
their popularity spread among 
the bourgeoisie. 

As an essentia] ingredient in 
Victorian romance (how many 
love affairs began to bloom 
behind the potted palms?) and 
a vital part of the social life of 
their day, they survived well 
into Edwar dian times. 

However, as they became 
more accessible and attached 
to small ffT and smaller houses, 
they became too workaday for 
the rich and gradually fell out 
of favour. 

It was not until the mid-1970s 
that interest in building con- 
servatories began to revive. 
Peter Marston, who started a 
company that is now called 
Marston & Langinger in the 
early 1970s, says that when he 
first started purveying the 
notion of conservatories he 
often had to explain “that we 
did not build music schools" so 
very unfamiliar had the idea 
become. 

It re mains as true now as it 
was in the last century that 
conservatories come into their 
own most ma gically during the 
long, grey winter months. And 
they offer us a means of mak- 
ing indifferent summers bear- 
able, with the illusion of being 
in a garden, surrounded by 
lush greenery. 

Conservatories also make 
entrancing settings for parties 
- summer or winter - and now 
that they are once again in 
fashion (after the en-s utte bath- 
room and the hand-painted 
kitchen, a conservatory, it 
seems, is next on the home 
improvement list) there is a 



Josephine dining table with slate top, from £505 


proliferation of accessories - 
everything that the well- 
dressed conservatory requires. 

For those thinking of 
embarking on building a con- 
servatory or for those who 
already have one but are 
looking for ways of improving 


it, Peter Marston has written 
an authoritative guide: The 
Book of the Conservatory * He 
also has some excellent ideas 
for making them an all-year- 
round household asset 
The most important relate to 
double-glazing and heating, 


essential for those who want a 
tropical illusion in the midst of 
a British winter. The Victori- 
ans went in for vast boilers 
and radiators and seemed to 
have been blessed with a 
happy unconcern for beating 
costs. 

These days double-glazing 
and insulation are the key. if 
beating costs are not to be 

astronomical. All that should 
then be required Is a simple 
extension of the domestic cen- 
tral heating system - ideally 
with separate controls so that 
the conservatory can be heated 
independently at night Under- 
floor heating is ideal and Mar- 
ston & Langinger has devel- 
oped a system which uses 
extremely elegant cast-iron 
floor grills, wonderfully remi- 
niscent of the intricate iron- 
work that so characterised 
those first Victorian designs. 

As the winter nights set in, 
the sense of summer coolness 
and light can be replaced by a 
cosier feel with rugs on the ter- 
racotta or stone flooring, cush- 
ions and throws can be added 
to sofas and chairs (see the 
photograph here) and blinds 
which in the summer keep out 
the glare can, in winter, be 
used to keep warmth in. 

For winter evenings and par- 
ties, there is nothing more 
beautiful than candlelight but 
lanterns are probably safer and 
there are plenty to choose 
from, Peter Marston developed 
a range of furnishing accesso- 
ries specifically for conservato- 
ries, because so many of his 
customers found that once 
they had the structure there 
was no single source of appro- 
priate accoutrements. 

The Marston & Langinger 
shop at 192 Ebury Street Lon- 
don SW1 is one or the best 
places to start looking. Here 
are lanterns of every kind, 
from the pumpkmshaped one 
photographed here to the hang- 
ing star or the Moorish- 
inspired version. 

The shop also offers the 
wickerwork furniture that 
seems appropriate for a light- 
filled setting, with the throws 


Home 
in on 
the 
basics 

Lucia van der 
Post on Conran 


W hen the House 
Book by the then 
Terence Conran 
came out in 1974 1 
was in the midst of doing up a 
terraced house in London. L 
and most of my friends, seized 
upon it with relish, for here at 
last was a book that seemed to 
speak to us. Here was a book 
that addressed the everyday 
problems of making a house 
work without the irritating 
assumptions so prevalent in 
the glossy interior magazin es 
of the day that we either 
aspired to images of ancestral 
grandeur or suburban cosiness. 

It offered a vision of a con- 
temporary way of living that 
related to our lives and 
incomes. But above all it 
showed us the virtues of sim- 
plicity. of investing in basics 



Atypical Interior from Hie Essential 


such as the structure of the 
house, of getting the lighting 
right the heating, the flooring 
first Style, or the addition of 
the more movable elements 
such as furniture, curtains, pic- 
tures, lamps and all the rest 
ran the subtext could almost 



take care of itself provided the 
basics were right. 

In some ways there seems 
scarcely any need to update it, 
so classic, so fundamentally 
sensible is the advice. 

But Sir Terence has just pro- 
duced a bigger, equally well-il- 
lustrated 1994 version which he 
calls The Essential House 
Book * 

The fundamental philosophy 
has not changed. Here, for 
instance, are a couple of para- 
graphs from the introduction: 
“A home is greater than the 
sum of its parts and getting the 
practicalities right is only half 
of the story. For most people, 
the special significance of 
'home' lies at a deeper leveL 
Home is where we feel at ease, 
where we belong, where we 
can create surroundings which 
reflect our tastes and plea- 
sures. Creating a home has a 
lot to do with discovering 
those elements that convey a 
sense of place. 

“Investigating these basic 
ideas relegates 'style' to some- 
thing of a side issue. Fashions 
in decorating fluctuate like 
hemlines, whereas notions of 
comfort and intimacy date 
back hundreds of years. This is 
not to say that style isn’t fun 
or even useful But it is ulti- 
mately more important to find 
out what you really like, the 
unique combination of space, 
light, colour and materials 
which will continue to refresh 
your spirits long after the lat- 
est Took’ has had its day.” 

This book is a manual which 


would be invaluable to any- 
body setting out on the adven- 
ture of creating a home. It is 
illustrated quite beautifully 
with pictures that are imbued 
with a relaxed and un didactic 
approach to matters of taste 
and style. If they have a com- 
mon thread it is of light and 
air and an unstuff? approach 
to the business of turning a 
house into a home. 

The pictures show, better 
than almost any words, that 
there are no “right" and no 
“wrong" ways to furnish. 
Instead what we have in the 
late 20th century is as vast a 
choice as it is almost possible 
to imagine. 

But quite apart from the 
inspiring pictures, practical 
issues are tackled - from how 
to make a kitchen work for 
you (and the kitchens featured 
ranged from small and mini- 
malist to a large family living- 
room-cum-kitchen) to how to 
deal with the vexed matter of 
significant spatial change. 

Even for those who already 
have houses they are satisfied 
with, this book has much to 
offer. Us directory covering the 
practical subjects such as light- 
ing, flooring, plumbing, paints 
and plaster is filled with useful 
information, and the list of 
useful addresses for everything 
from brass door furniture to 
architects and security alarms 
makes the book worth its cover 
price alone. 

*The Essential House Book by 
Terence Conran, published by 
Conran Octopus. 272 pages. £25. 



Wrought-iron (fining-chair in dark 
green with tie-sided cushion, £180 

and cushions that will trans- 
form it in winter. But for an 
inspirational glimpse of the 
extra dimension that a well- 
designed and enchantmgly fur- 
nished conservatory can add to 
living, I recommend Peter Mar- 
ston's book - the colour pic- 


Repfica of a 19th century French 
wrought-iran chair, £282. 

tures are inspirational. They 
feature every mood from 
sunny cool and tranquil 
through to exotic, rich and 
intricate. 

Particularly useful is the 
glossary of suitable plants and 
how to look after them, the 


Pumpkin lantern in groan glass 
and antiqued metal, £220. 

practical advice on the things 
you really have to get right 
from the be ginning - such as 
flooring, heating, double-glaz- 
ing - and the lists of designers, 
builders and suppliers of forni- 
ture, jardinieres, hanging bas- 
kets and all the other trap- 


Wat-mounted Davey lantern, hand 
finished in weathered brass, £175 

pings that the new owner will 
find himself obliged to buy. 

* Published by Weidenfeld & 
Nicholson. 176 pages, £18.99, 
available by post from Marston 
& Langinger, George Edwards 
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VT WEEKEND FT 


FINANCIAL TIMES WEEK-END NOVE 


FASHION 


■if vfjy: v« * .Y’A.JJ' X 



Drape- backed black rik satin dress by Paul Frith, £365 from Ha rods’ Way In and from a selection at Ufaorty 
and Harvey Nichols, Kmghtsbridge, SW1. 

Beaded Mack satin shoes, ^ from Emma Hope, Amwefl Street, EC1. Earrings, £1095 from Fenwick, New 
Bond Street, W1. Sheer tights by Aristae. 


Y oung British design- 
ers have bags of tal- 
ent and the whole 
fashion world 
acknowledges it. 
Some also have what is known 
as “attitude”. The combination 
of creative over-confidence and 
a cavalier approach to produc- 
tion. and deliveries, in an 
Industry notoriously run on a 
shoestring, was for years the 
despair of backers and store 
buyers. 

One wealthy businessman 
who invested in British design- 
ers during the 1980s will no 
longer touch them, preferring 
to spend his money on estab- 
lished foreign names who 
deliver wearer-friendly clothes 
when they promise them. 

Perhaps It Is time for him, 
and otters of his ilk, to look 
again at British talent. Hard 
economic realities have created 
a new attitude of down-to-earth 


discipline among the 
up-and-coming. Some have set 
out with a rigorous, profes- 
sional approach while others 
have learnt by bitter experi- 
ence. All know that the days 
when a student designer could 
sell an outrageous graduate 
collection straight off the 
college catwalk and not worry 
about details such as produc- 
tion schedules are long 
gone. 

The test deserve an ovation 
for achieving a near-miracle. 
They are producing serious, 
well-made clothes with enough 
wit and originality to attract 
the sophisticated woman with 
a deep pocket, even when her 
eye is jaded by an overcrowded 
design market. And despite 
tight cash-flows, they deliver 
on time and up to quality. 

None of them finds it easy. 
Listening to their stories, one 
wonders what would possess 


anyone to start a fashion 
design business in Britain 
today. Presumably the creative 
drive and the lure of fame or 
distant fortune are strong. And 
there are interim rewards. Son- 
nentag Mulligan and Paul 
Frith have gone, in four sea- 
sons, from young unknowns to 
seeing their names in lights at 
top London stores - Liberty, 
Harvey Nichols and Way In at 
Harrods have been partkmlariy 
supportive. 

Liberty sometimes helps 
designers offiset the cost of a 
first collection by paying for 
the fabric. Owen Caster’s first 
full collection so caught the 
imagination of Japanese buy- 
ers that its proceeds have 
financed the next one. 

Other young designers, how- 
ever, suffer from problems and 
prejudices. Provincial British 
shops are still made nervous 
by comments such as the one 


Waterproof seed wocdies, for ladies and gentlemen, 
with an interchangeable steel bracelet and leather scraps, from £1100. 


R 


from a New York buyer who 
recently declared that she had 
twice ordered from a talented 
British designer, but bad not 
received a single piece. 

Prejudices rub off on some 
designers who ill -deserve it. 
Often they are expected to be 
late and ill-organised because 
some of their contemporaries 
still believe that showing in a 
seedy, inaccessible corner of 
London in the middle of the 
night is a smart way to display 
their creative power. 

The only way designers can 
show that they are now grown 
up and have given np such fol- 
lies is by cleaning up their 
acts. 

Sonnentag Mulligan and 
Paul Frith both had their 
autumn deliveries into stores 
by mid-August, well before 
they were needed. Nicholas 
Knightly’s spring show of soft, 
perfectly-executed jersey 
dresses, fine wool Guernsey 
sweaters and pale striped cot- 
ton pyjamas was in a sensible 
central London location and 
started well on time - a state- 
ment of intent after several 
erratic seasons. 

Designers are rarely business 
b rains as well, and finding the 
necessary adviser is difficult. 
Getting financial backing is 
even harder and cashflow 
problems are endemic - the 
time-lag between investment 
and payment is often longer 

The World's Finest Men's 
Underwear. 


Deep grey wool coat with hook fastenings, £450, gunmetaf wool/ 
polyamide waistcoat, £170, and trousers, £221, afl by Sonnentag 
Mulligan from Harrods* Way In, Knightstartdgo, SW1. 

Black suede shoes, £170 from Stephane K&ian. Opaque tights 
by Aristae. 


i*. —' ■ 


JEWELLER SINCE 1858 

BOUCHERON 

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than the stores would counte- 
nance. 

Some new designers find 
ways to counteract this. Clin- 
ton Silver, chairman of the 
British Fashion Council is 
busy arranging “marriages" 
between designers and compa- 
nies. This is not, he says, to 
“control the designer's busi- 
ness" but bo “help give them 
more exposure and also the 
benefits of experience. In 
return, the designer’s consul- 
tancy input can raise the raan- 


Hair and make-up: 

Helen Frampton for EKsheten, 
Walton Street, SW3 
Pictures: James Martin 


uf ac hirer's fashion profile and 
thus contribute to improving 
design standards in the high 
street." 

Barbara Sonnentag and 
Tracey Mulligan's arrangement 
with the Stirling Group, a 
Marks and Spencer supplier, 
resulted in their recent first 
solo show, which, with vibrant 
colours, innovative fabric 
mixes and sharply glamorous 
shapes was one of the toasts of 
London Fashion week. 

“We new feel confident in 
developing a bolder, slightly 
younger direction." says Bar- 
bara. They are not forsaking 
the high-quality, wearable tail- 
oring on which their reputa- 
tion has been built, however, 
“because we have to compete 
with a lot of better-known 
names". 

The quality of their under- 
stated, slimly-cut autumn suits 
in mixes of matt and slightly 
shiny neutrals is remarkable 
considering they are their com- 
pany’s only full-time employ- 
ees. 

Nicholas Knightly says he 
keeps the small factories he 
uses happy “by trying to be a 
good customer" - unexpected 
for a young man who gradu- 


ated in 1991 with prodigious 
talent and an ego to match. His 
first collection, of white shirts 
and denim, was bought by Har- 
vey Nichols. But he had little 
business experience and false 
starts and broken contracts fol- 
lowed. 

His talent for feminine, flat- 
tering cutting has brought con- 
sultancies from commercial 
companies, one of which now 
keeps him and his full-time 
assistant “on the straight and 
narrow". A small autumn col- 
lection of favourite shirts - the 
deceptively-simple one we 
show was designed three years 
ago - and private orders will 
be followed by full-scale deliv- 
eries for spring and he will 
also design a range for the Stir- 
ling Cooper group. 

Paul Frith has as yet to 
make such a commercial link 
but hopes his efficient system 
will attract an investor. “My 
business manager and accoun- 
tant both have other jobs so 
most of any investment would 
go into the company, not over- 
heads,” he says. 

In a previous life he was a 
Royal Marine, and the disci- 
pline shows. He worked in bars 
to fund his first collection, he 
uses plain, classic fabrics - 
wool crepe, silk satin and, for 
spring, cashmere and chiffon - 
so supply is not a problem, and 
he tracks down small factories 
which can produce the quality 
finish he demands for his very 
simple, body-skimming, taste- 
fully sexy shapes. 

Owen Caster is a new boy on 
the block who has only shown 
two full collections but his atti- 
tude is promisingly serious. He 
sold his graduation collection 
to finance a tiny privateorder 
business and perfected tradi- 
tional hand- finished tailoring 
techniques by studying con- 
struction of vintage jackets. 

Earlier this year he held his 
first, self-financed, show. It 
resulted in a Japanese agent 
who found 15 stockists for his 


br 


Cream and blue check wool jacket with 
folded peplum, £450, matching spot skirt, £160, 
both by Owen Gastar from Joseph, 

Brompton Cross, London SW3, or to order 
from 071-6353556. 

Tights by Golden Lady 


glamorous tailoring which is 
precision-cut on a dummy 
rather than sketched “because 
bodies aren't flat". He says he 
designs for “mature, elegant 
women" and demands a suit- 
ably high quality from his 
small factory and out- 
workers. 

The lessons which these 
designers learn as they prog- 
ress may prove instructive in 
the future. Caster has leapt 
boldly into exporting after find- 
ing that "you cannot survive 
on British sales because this is 
such a small market Real busi- 
ness is done abroad." Frith dis- 
agrees, having learnt that “a 


well-run business starts small 
and takes time”. 

It will be interesting to 
review their respective posi- 
tions in a year. Barbara Son- 
nentag has learnt the bitter 
lesson that “it is very hard to 
make money in this business” 
but remains optimistic. 

Knightly’s comments reveal 
most about the attitude with 
which young designers start 
out: Tve learnt that desig nin g 
is a job, not a hobby, and now I 
listen to what my customer 
wants." He, it seems, has 
learnt humility, which in the 
world of fashion is the most 
important growing-up lesson. 


^HUNTSMAN- 

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WEEKEND FT VII 





Navy and darat wiwrt snaking jackal £395, whOe marooOa front dress shirt; ESS and navy wehet evening 
sf^ppare, £79 ail by HacketL Navy velvet trousers £94 by Deeignworics 19 Avery Row, London W1. Claret silt 
stock from a selection at Paid Smith, Floral Street, London WC2 


Pink jacket, £295 by Moschino Cheap & CWc at Harvey Nfcferts. 
Wlne-coJured waistcoat, £190, tv Georgina von EtatorL Cream shirt by 
Krizta Uomo. Trousers £94 by Deslgnworlcs. Shoes by Paid Smith. 


Purple Jacket with Nehru color, £370 by Favourbraok. Tunic, ESS and black and sflver dress studs, £18 both by 
HacketL Gold sBt brocade trousers, £370 by Yves Sakit LaurenMbve Gauche. Cummerbund, £70, by Georghna 
von Bzdorf, 50 Buffington Arcade, London SW1 and Barney’s, New York. Black patent shoes by Hacked 


mm 





O bliged to wear 
dark suits by 
day, and the uni- 
form of black tie 
and Aimer jacket 
for formal evening functions, 
men are not always practised 
in the art of ringing the 
changes where dress is con- 
cerned. 

The modem man has been 
able to shelter behind the pro- 
tection of regulation "kit” for 
too long, and has excused him- 
self from using his clothes as a 
means of self-expression. He 
may fear the freedom that 
comes when the rule hook is 
thrown away. 

If a gold-edged invitation 
arrives for an evening's rev- 
elry, but black tie is not obliga- 
tory, what is a chap to do? 

He is going to have to think 
for himself. If he cannot take 
refuge in his dinner jacket, 
wants a change from his office 
suit and feels jeans and a 
leather jacket are not quite 
right, what should he wear? 

This has long been a problem 
in country circles, where black 
tie can look ridiculous in more 
relaxed settings, but has been 
overcome in the shines by a 
touch of the flamboyant and 
eccentric. A gaudy mix of 



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Brown veto* dkiner jacket, £850? and waistcoat; £250: shirt, £1 95, 
trousers, *****, by Gforgto Armani. Cravat, £40 by Ffcvowbroak, 18-21 
Plccacffly Arcade, Jermyn Street, London. Shoe* by HacketL 





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The antares World's elaborate movement shows the time of day simultaneously in throe 
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plaids with rich velvets and 
silks brings a cosmopolitan 
male flamboyance to provincial 
parties that is rarely seen in 
London. 

Highland castles stage col- 
ourful balls and Gloucester- 
shire manors host parties at 
which men are decked in 
vibrant splendour. This 
Regency flair for male sartorial 
elegance has survived in rural 
Britain and looks set to return 
to the city -too. 

City men should not take 
fright. Many of the looks on 
offer may have a distinct touch 
of the romantic about them, 
with more than a touch of 
homage to Byron and Shelley, 
but the best are thoroughly 
masculine, using fabrics and 
accessories that are richly sen- 
sual but boldly Gothic. 

Favourbrook, the gentle- 
men's outfitters, off London’s 
Jermyn Street, says It Is selling 
more individual evening 
clothes for men. The velvets 
and brocade jackets and waist- 
coats we produce have been 
selling much more lately and 
not just to a flew young snappy 
dressers." says proprietor Peter 
Vayner. 

From elderly judges to suc- 
cessful young city executives, 
men in search of a little colour 
have been updating their even- 
ing wardrobes with velvet jack- 
ets and elaborate silk moiree 
waistcoats. At Favour brook, 
traditional tailoring is mixed 
with sumptuous fabrics, both 
contemporary and period in , 
design, to create menswear : 
that is highly individual - a 
personal statement rather than 
a run-of-the-mill uniform. 

It is this notion of personal 
statement and a sense of indi- 
viduality that should be aimed 
at when choosing men's even- 
ing attire - a display of 
healthy flamboyance. 

Robin Dutt, Bon Vlveur. art 
critic and style guru, is a great 
advocate of the flamboyant. 
And it is with evening wear 
that he sees a chance for men 
to let loose. “All stiff sartorial 
rales can be broken when it 
comes to men's eveningwear,” 
says he, “hut it has to be done 
with panache, with a certain 
soignde elegance." He mourns 
the sobriety of black tie and 
urges men to invest in at least 
one sumptuous evening gar- 
ment in rich velvet or luxuri- 
ous silk. 

Velvet seems to be the fabric 
of the moment and it comes in 
many shapes and guises from 
the traditional smoking jacket 
to the high collared Nehru. 

Neck fastenings can be 
experimental and relaxed with 
variations on cravat ties or col- 
larless dress shirts with studs, 
or velvet and satin shirts left 
casually open beneath layers of 
brocade waistcoats and velvet 
jackets. 

The overall aim is to bring 
some life and colour to the 
evening scene, to revive the 
traditions of old, to learn again 
to couple fun with a touch of 
the eccentric and to add a dash 
of romanticism. 

However, remember that you 
must feel comfortable with this 
new look. So do not choose 
something so wild that you 
will feel ill at ease. It must be 
you. After all you do not want 
to admire it only in the ward- 
robe. You could, if you feel 


your personal style is not too 
flam boyant, invest in a single 
waistcoat. If you are reeling 
more adventurous you could 
go for a jewel-coloured jacket, 
a romantic cravat or even a 
complete velvet or brocade 
suit 

If you are in doubt as to how 
to put it together take alookat 
the photographs here and 
think back to the inspirational 
sources of the current mood - 


Byron, Shelley, Beau Brum- 
mell, the Duke of Windsor, 

Indian Mahar aj ahs , Gothic 
novels, the films Dracula, 
Frankenstein (although avoid 
the overly sinister) and Lbs 
L iaisons Dangereuse. 

Places to look: 

■ Favourbrook, Piccadilly 
Arcade, Jermyn Street, London 
Wl for off-the-peg and made-to- 
measure one-offs and off-beat 
tailoring. 


■ Yves Saint Laurent Rive 
Gauche, New Bond Street, Lon- 
don Wl for fabulous men's bro- 
cade suits and “le smoking" 
jackets. 

■ Harvey Nichols, men’s con- 
temporary department, 
Enightsbridge, London SWl 
has a wide modem collection 
of velvets (look particularly for 
those by Moschino). 

■ Simpsons, Piccadilly, Lon- 
don, Wl, for traditional smok- 


ing jackets. 

■ Paul Smith, (there are 
nationwide stockists) has mod- 
em variations on velvet and 
satin shirts and suits. 

■ Good secondhand shops. 

Photographer. Jose Aragon 
Stylist: Heath Brown 
Hair and grooming: 

Shani Zion 
Styling assistance: 

Ruth Phillips 


ALFRED DUNHILL 


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FINANCIAL TIMES WEEKEND NOVEMBER 26/NpVSMBKR 27 ,! 


27 1994 


HOW TO SPEND IT: THE ELECTRONIC AGE 


W e may be at 
the dawn of 
the digital age 
but to most of 
us the elec- 
tronics world is as chaotic and 
confusing as ever. 

After all, who wants to risk 
becoming one of those apocry- 
phal “friends-of-friends” who 
spent thousands of pounds on 
an early fax machine or who 
bought a Betamax video. 

That spifl, there has never 
been a better time to treat 
yourself to a new set of techno- 
toys. 

The combination of eco- 
nomic recession, fierce compe- 
tition and pressure from new- 
ly-wired consumers has forced 
the big Japanese electronics 
and US computer companies to 
sharpen their acts. 

Prices have fallen: styling is 
aHrihar and the latest electronic 
devices are also easier to use. 

After a lean period Cor inno- 
vation in the industry, a 
stream of electronic products 
will be arriving on the market 
in the nest year or so. 

Televisions 

The humble TV set is one of 
the ™ain subjects for innova- 
tion. For years the industry 
assumed that high definition 
TV, or HDTV which offers 
superior sound and image 
quality when compared with 
conventional television, 
would be its hope for the 
future. 

However. HDTV is years 
away from being launched in 
the OS and Europe, where the 
industry is still deciding on 
standards apH specifications. 

It is available only in Japan 
and has not caught on there 
because of high prices - a Sony 
system costs Y600.000 to 
Y800.000 (about £4,000-£5,000) - 
and a shortage of program- 
ming. 

Instead, the big hit in Japan 
is the wide screen. When they 
were launched three years ago 
the industry saw them as a 
cult product that might appeal 
to movie buffs, as the screens 
have the same shape as a cin- 
ema screen. But wide-screen 
has become a surprise success. 

It accounts for one in five of 
all the televisions sold in 
Japan. Now, it is coming to 
Europe in the guise erf the new 
generation of PALplus stan- 
dard televisions. 

Nokia is in ike lead, having 
launched a ssfa PALplus set 
for £L500. Michael Grade, chief 
executive of Channel 4, has 
already bought one. 


Techno-toys - not just for the boys 

Alice Raws thorn keeps an eye on the electronics products that will be hitting the high streets within the next year or two 



. wiifc the -current crop..of : Hr 
minute discs - which are kmg 
, enou gh fa r albums, but not oar 
feafcure fibus - .or tavdewfop- 
"an expensive new digitally- 


Sony, Philips and Grundig 
are now finalising their PAL- 
plus launch plans for early 
next year. 

Games 

After racing ahead in the late 
lS80s and early 1990s, the video 
and computer game market 
has reached a hiatus over the 
past year or so, as games tens 
have awaited the launch of the 
next wave of 32-bit and 64-bit 
compact disc-based games. 

The new games are more 
powerful than the old 16-bit 
cartridge consoles. They also 
offer digital sound, three 


riimpnc i nnal grap hics and rin - 
Brnatir viSUalS. 

“They're streets ahead of 
their predecessors.’' said one 
expert “Playing a 32-bit foot- 
ball game will be like staging 
your own Match of the Day 
with the crowd chanting in the 
background." 

Two of the first 32-bit games 
machines, the Sony PlaySta- 
tion and the Sega Saturn, are 
going on sale in Japan this 
month and in Europe next 
spring. 

The most eagerly-awaited 
innovation is Nintendo’s super- 
powerful Ultra 64, which is 
twice as powerful as the 32-bit 


games machine and will cost 
$200 when it goes on sale in the 
aut umn of next year. 

New Music Media 

After the success of compact 
disc, the electronics industry is 
eager to move to the next new 
medium. The hitch is that no 
one seems able to agree exactly 
what the new medium will be. 

Philips and Panasonic have 
joined forces to develop the 
Digital Compact Cassette, 
which they see as a logical suc- 
cessor to the analogue cassette 
as it is smenpr and more dura- 
ble with digital sound quality. 


Sony and Sharp are p inning 
their hopes on the MiniDisc, a 
miniaturised version of the 
compact disc that offers the 
same advantages of random 
access and durability in a 
smaller, recordable format. 

All four companies claim 
publicly that sales are on tar- 
get Privately, they admit that 
the progess of their new prod- 
ucts is scarcely scintillating. 
One of their smartest competi- 
tors, Pioneer, is playing safe. 

It sees DCC and BID as 
“intermediate technology” and 
is concentrating on developing 
a miniaturised blue laser disc 
system which, it hopes, will be 


the new medium for the 21st 
century. 

Compact Discs 

Yet another battle is brewing 
over the format for the next 
generation of compact 
discs. 

There are now three compet- 
ing formats on the markrf So 
for CD-ROM - the interactive 
disc that combines text, graph- 
ics and sound - looks like the 
winner particularly in the US 
where Microsoft has been 
playing on parental con- 
sciences by selling CD-ROMs 
as educational aids, notably 


encyclopaedias. 

The competing formats are 
CD-U the interactive compact 
discs developed by Philips for 
use an dedicated consoles that 
cost from £299 and plug into 
television sets, and 3DO, a top- 
of-th e-range games system. 

Confused? Just wait until 
video CD comes on stream. 
This is tiie new genre of disc 
that plays films, just like , a 
video tape, as well as mustd 

Video CDs are already trick- 
ling on to the Japanese mar- 
ket. But most manufacturers 
are loathe to mount full-scale 
launches elsewhere until 
industry has resolved the tim- 


Computers 

Main themes in tbeeompafcer- 
market over ti&e nasi psw years . 
will be integration andnriniat- 
; urisatioa Compaq has led ice - 
field m integration with muiti- 

ypodia Tnadriiwa that Operate. 

- as CD players,, PCs^.tax 

■ wta^hrngL CD-ROM driVeaand 
even telephones seUfog-far 
$i,t)QQ in the US, or for around 
£1,100 in the UK. V.v. ’ 

Sony is'making waves on the 
- -miniaturisation front with the 

Personal Intelligent Comm unl- 
cator developed in. conjunction 

• with AT&T. • 

The HC, which sells for . $995 
in the US, is a portable gadget, 

- (he garne a£ze as a Fflnfor. that 
functions as a fox, database 

■ and an E-mail machine. 5 is 
available in the US., only, 
aUbmig h Sony hopes soonto^ 
la unch a similar : format In 

. Japan. ’ ‘ ' . : • . 

Global posttionirig 
systems" ■ 

. it anything can claim to be foe 
techno-treat of tbe earty 1990s 
it is the gtob^ponitiQntajr sys- 
tem* tfta handheld devices that - 
•’ enable the user to : plot whore 

- they axe and wfcere they, want 

• to go. " 

. Philippe Starck, the snpe r- 
star French- designer, .uses Ids 
in his private aircraft. 

The GPS is stm seen as 
something of an indulgence in 
Europe, but in Japan It is ^ rap- 
idly becoming commonplace. 
The must-have accessory is a 
digital map, or in-car global 
portioning system: a CDROM 
drive is tucked away in the 
boot and a map of tiie route 
flashes an a dashboard sere®. 

Sony sold 90,000 Digital Maps 
last year and expects sales at 
least to double in. 1994. Its lat- 
est ruse is a Y400j000 digital 
map with a real-time traffic 
information system that uses a 
cellular phone ifnk to warn 
drivers of jams ahead. Sony 
hopes to start with the digital 
map in Germany, in. April. - 
Meanwhile, Pioneer is mark- 
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FINANCIAL TIMES WEEKEND NOVEMBER 26/NOVEMBER 27 1994 


WEEKEND FT IX 






oys 


HOW TO SPEND IT: THE ELECTRONIC AGE 


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T echnology has moved 
so far and so fast in 
recent years that you 
can now take your 
pick from large quantities of 
techno-toys that, a decade ago, 
would have existed only In the 
darkest corners of Q's labora- 
tory on a James Bond aim set. 

If money was no object, and 
you were free to choose from 
the very best of the techno- toys 
around, regardless of price, 
which products could, or 
should, you buy? 

Night vision a problem? It 
does not need to be - not with 
a hand -held, thermal imag in g 
device. Pysis makes a one-eyed 
version with a hefty Fuji zoom 
lens for £900 or thereabouts. 
You see things in a fetching 
shade of luminous pea-green: 
bandy, if you happen to like 
that colour. The bonus is that 
its ergonomic shape means you 
can hold it with one hand. A 
pleasure to use. 

The pleasure principle is to 
be found everywhere in the 
design of technology. Argu- 
ably, there is no product area 
apart from car design that has 
benefited more from advances 
in the understanding of prod- 
uct semantics than the com- 
puter. 

If you feel the need for an 
electronic organiser to put a 
little order into your life, the 
Psion Series 3a is well worth a 
look for its chunky feel and 
robust usability. 

A snip at £329.95, it comes 
complete with lots of smart 


Money to burn? Then 
think electronics 

Do not blink or you will miss the latest technology, says Michael Horsham 



C? A '^1 ■ ' : . • . 

*s* • 



The Psion 38: for rostering order In your Me 


cards and. the necessary leads. 
For tougher tasks, you will 
need a bigger, beefier computer 

which is also enjoyable to use. 

The top-of-the-range Apple 
Macintosh Powerbook 540c4 / 
320 costs a shade over £4,000 
and plays a nifty game of com- 
puter golf as well as dealing 
with all the organisational 
material you would want it to 
handle. 

One of the nicest things 
about the most expensive Pow- 
erbooks is that you get a track- 
pad, rather than a hall, as the 
control for the computer. Your 
fingertips simply trace a direc- 
tion over a silkily-textured 
piece of plastic. How it works 
is a mystery: but that is half 
the pleasure of owning such an 
expensive machine. 

Another exercise in unadul- 
terated extravagance would be 
an Ericsson EH237 portable 
telephone. It is a nicely com- 
pact piece of design with an 
the fully-featured functions 
that you would expect from a 

minia turised r nmmnnira tinng 

centre. The hitch is that the 
EH237 rockets in price if you 
buy it without a connection. 
With air-time, it costs less than 
£100. Without air-time, it is 
£38159. 

Another terrific little toy is 
the Sony Pixis IPS 760 (£1,299). 
It is a hand-held global posi- 
tioning system that tells you 
more or less exactly where you 
are at any time - within 30 to 
100 metres. Take a map, use it 
to tell the Pixis the latitude 



The Powerbook 540c from Apple 

and longitude erf your friend's 
country house - and the device 
will tell you exactly how far 
away you are and what direc- 
tion you should take. 

The Puds is a pleasure to 
hold and to play with. But it is 
about twice the price of some 
rival makes, which will give 
you just as accurate a position. 

Let us assume that the posi- 
tion your Pixis has given you 
is “on the sofa in the firing 


room watching television". 
Technology has brought us to 
a stage where the choice of 
sets available is bewildering. 

If you want to see the pic- 
tures as the cameraman ar>rt 
the production team see them 
when they are working, you 
could do worse than invest in a 
professional broadcast moni- 
tor. The Sony PVM 1444 QM 
(£1.499) is the one to look for. 

A video recorder to go with 


N ew Yorkers are no 
techno-freaks. This 
is a city, after all, 
where the latest in 
retro-fashion dictates that 
owning a rotary telephone is 
hip. 

This low-tech approach to 
life might explain why the 
humble pager is so popular 
among Wall Street’s top trad- 
ers and investment bankers. 
Admittedly, today’s pagers, 
with their liquid crystal dials 
that transmit detailed mes- 
sages and information are do 
longer quite so. humble. 

Yet, -Wall Streeters seem' to 
prefer the pager over the 
mobile phone because of its 
lack erf inter-activity. A quiet 
buzz and short message seem 
less intrusive than a shrill 
tone and long conversation. 

The sight of millionaire 
bankers using pagers still sur- 
prises some people, however. 


Paging is perfect and small is beautiful 


A variety of fads are catching on around the world. FT writers report on what is happening where 


/'/a 


As one bemused executive at a 
top bank said recently: “Yon 
see guys walking in here wear- 
ing a $2,000 suit and a pager 
clipped to their belt" 

You can, of course, stOl spot 
the occasional Armani-suited 
executive with a notebook 
computer, but the more 
tuned-in techno-freaks will 
probably be armed with the 
new line of personal commnni- 
cators such as Sony’s Magic 
link or BefiSonth’s Simon. 

These hand-held contrap- 
tions are a phone, fax, pager, 
E-nuiler, scheduler, address 
book, calculator and note-pad 
all rolled into one small, if 
slightly bulky, box. The Smon 


costs around $600 and the 
Magic Link $900, and both are 
becoming popular in the 
media and fashion businesses. 

Gothamites, however, are 
not immune to the lore of the 
high-tech gizmo if it allows 
them to eqjoy a little ‘’down- 
time*’ now and then. The SoHo 
art crowd probably gets a kick 
out of Brooklyn artist Todd 
Robbins' Sound Toy, a soft- 
ware program which allows 
art-lovers to inter-act with his 
work via their computer 
screens, creating their own 
mix of music and images from 
an electronic canvas. 

Then there is personal pro- 
jection television, the latest 


fhd among those who cannot 
bear to leave the box. PPTV 
consists of a pair of glasses 
with built-in headphones. A 
signal from a TV-tuner belt 
pack projects an image on to 
the inside of tbe glasses. 

The technology most eagerly 
awaited in New York is tbe 
in-car navigation system, on 
test in California. It Is 
intended to ensure that drivers 
never get lost Once it is in 
place, all that will be required 
is a product that translates the 
cabbie’s words into English - 
and provides automatic 
change for a $20 bill. 

Patrick Harverson 


A\ 






T he must-have item for any 
trend-conscious Californian 
teenager these days is the 
pocket pager - preferably in 
this season’s colours of bikini blue, hot 
pink or a see-£hough “ice" shade. 

These matchbox-sized devices may 
have begun life as a communications 
tool but they are now seen as a fashion 
item. Teens are also hot on pager acces- 
sories: bungee cords, gold chains and 
special clip-on cases are all tbe rage. 
Tbe coolest choose a pager in one col- 
our with a holster in another. 

Pagers had a bad image until about a 
year ago, because they were said to be 
used by drug dealers and their clients. 
Attitudes have changed. While many 
high schools still have an official ban 
on pagers, administrators are turning a 
hiinH eye to a trend that is too big to 
fight 

Teenagers are not the only age group 
catching on to the pager trend. Pagers 
are also b ecoming the communications 
tool of choice for “baby boomers” 
looking for affordable ways to stay in 
touch with their ageing parents and 
baby-sitters. But surveys suggest that 
teens are three times more likely to 
carry pagers than others. 

The appeal of a pager is clear for a 
generation of Californian youngsters 
which typically spends more leisure 
hours on the telephone - local calls are 
free - than watching television- The 
pager is, after all, the next best thins to 
amobile phone, which few of them 
could afford. . . 

Id California, a simple pager that 
accepts numeric messages costs about 
«7Q with a service charge of $10 a 
SLh- A cellular 

sells for $160, and monthly call charges 
can mount quickly to $100 m- mare- 
rt is however, parents who buy most 
J touted around by 
i£S?m£ihn have self-interest 

iTmtaLTbe pager 
£ lengthen the parental apron strings 
whlSSeephitabs on young Jenny 



tr‘5 MY RA6£(t , ,T „ 
SW/S/'oiMf. NOW 


or John. The new house rule for the 
Californian teenager is: “When I page, 
you call home." 

In a society where parents double as 
taxi drivers for their youngsters 
because there is little public transport, 
pagers are an asset when plans go 
astray. 

Low-cost paging services, of the sort 
used by most teenagers, are designed to 
transmit only numeric messages, nor- 
mally a telephone number. But young- 
sters have worked out codes to make 
the most of the system. 

Mother's code number is always 303 
which, turned on its side, looks like 
mom. The girl/boyfriend code is 143 - 
the number of letters in the words “I 
love you”. 

For the lovelorn, the code 1 1717155 00 
means “I miss you” because, when 
those numbers are squeezed together, 
they look a bit like the words. 

Louise Kehoe 


S ales clerks in Japan's vast 

electronics stores have a lot of 
learning to do these days. 

Just a few years ago, they 
could persuade their customers to buy 
the latest stereo or television set on the 
merits of better sound quality or clearer 
pictures. Now, consumers want to know 
much more about complicated 
functions such as memory storage and 
software compatibility. 

A short-list of tbe best-selling 
electronic products in Japan reflects a 
definite trend away from conventional 
audio-visual equipment, although there 
are some exceptions. 

Sharp's Viewcam - a video camera 
with a liquid crystal display view-finder 
that allows the user to watdi what is 
being filmed on the spot - is one rare 
example of con tinuing success in a 
tried-and-tested product sector. 

Another is wide-screen television 
sets. These have been on the market for 
only two years but have claimed a large 
slice of the market already. 

Sony says they will represent 30 per 
cent of overall television sales this year. 

Yet, while wide- screens have been 
enormously successful, some companies 
wonder if they will ever become a 
block-buster hit on the same scale as 
the Walkman or video recorders, rather 
than simply being replacements for old 
sets. 

Most of the present hits in the 
Japanese electronics market reflect the 
blurring of tbe old boundaries between 
consumer electronics and information 
technology. 

One of the most popular new 
products is the car navigation system - 
a global positioner that is installed in 
the car boot with a screen containing a 
digital map on the dash-board. 

These do not fall easily into the 
conventional definition of consumer 
electronic products; indeed, they can 
more accurately be described as 
information tools. 

Other successful examples of these 


are the new wave of personal digital 
assistants, such as Sharp's pen-based 
Zaurus system, and increasingly 
popular cellular telephones. 

This trend has led many Japanese 
companies to concentrate more of their 
resources on information technologies 
that will let consumers receive 
entertainment software or information 
through communications networks, or 
keep large amounts .of information in 
digital storage media. 

Pioneer plans to link with two other 
companies to provide karaoke services 
down the telephone line, while Sony is 
focusing its energy on products 
merging information with 
entertainment. 

These include Telnavi, which allows 
the user to access a car navigation 
system through a CD-ROM drive 
incorporated into a television unit that 
also plays regular music discs. 

Michiyo Nakamoto 


S mall is beautiful, it 
seems, to French 
consumers of gadgets 
and gizmos. From 
mobile phones to cars, 
miniaturisation is the 
buzzword for plugged-in 
Parisians. 

Nowhere is thin more evident 
than in the case of the Bi-Bop 
portable phone. Weighing less 
than 200 grammes, the 
hand- set is small e nou g h to 
slip into the owner’s pocket 
The Bi-Bop was launched 
last year and Is available only 
in Paris and Strasbourg. Yet 
France Telecom, the company 
behind it has more than 70,000 
subscribers already. - 
The system has its limits, 
tme being that callers need to 
be within range of a 
transmission sub-station. But 
unlike Rabbit, Bi-Bop's failed 
British counterpart, there is an 
adequate number of such 
stations in the launch cities. 
And Bi-Bop is expanding: from 
next month, it will be available 



■ ■ ■ Mi 'P* 



in Lille. 

Another hit is the mini-car - 
the vehicle sans permit. 
Unknown to many foreigners, 
France is home to a handful of 
companies that produce small 
cars which can be driven by 
motorists who have not passed 
the rigorous driving test 


it? Try the Sony S-VHS SVO 
9620 Pro-Recorder (£2,750). It 
has the same chunky aesthetic 
as the television set and, with 
its no-nonsense functional 
quality. Is built to last. 

Camera? The Canon EX-2 
Digital Hi-8 (£6599) has more 
buttons than a deep-sea explo- 
ration vehicle and looks suspi- 
ciously like one. The Sony Hi-8 
Pro editor Twin-deck Video 
Plasrer (also £6.999) should 
complete the set 

For those who prefer some- 
thing a little sticker. Bang & 
Olufsen, of Denmark, has been 
making the sound and vision 
equivalent to the De Lore an 
car for years. A completely 
expandable, modular Beosys- 
tem - including a television 
with motorised stand and inte- 
rior screen “curtains”, built-in 
video and several speakers 
delivering spooky, surround- 
type sound - would set you 
back nearly £10,000. 

If you wanted to add a huge, 
compact disc player, Sony’s 
Unilinear Q uadr uple D/A Con- 
verter System D/A Master 
Clock Twin Optical Linkage 
CD Player is £5,000. 

All thin is available off thn 
shelf for the modern technolo- 
gist with money to burn. Then 
there are the custom-built 
techno-toys where the price of 
a simple stereo and speakers 
can begin at £100,000. But who 
wants to wait for delivery 
when technology is moving so 
East and dragging desig n along 
with it? 


The appeal of these is not 
just for the young, who may 
fancy a roof over their heads 
rather than braving the 
elements on a moped. The PSP 
is also aimed at motorists 
frustrated at failing tn find 
parking spaces. One 
manufacturer, Microcar, has 
sold more than 40,000. 

VSPs are unlikely to set the 
pulse racing. With engines of 
about 50cc, or electric motors, 
they struggle to go faster than 
SQmph. But they can be driven 
by 14-year-olds, and they are 
easy to park, which gives them 
appeal. 

Yet the French remain 
attached to some tried and 
trusted gadgets, albeit in 
updated form. One is the 
Mtnitel, tbe teletext system 
which is to be found in &5m 
offices and households. 

It has been given a new lease 
of life since the introduction 
this summer of a faster model. 
The Mimtel a Grande Vitesse, 
as it is known, operates at 
9,600 bytes a second (eight 
times faster than its 
predecessor), allowing the 
transmission of images 
through the network. 


John Ridding 


close your eyes and see 


*k§» 




the remarkable Arcam Alpha 5 hi-fi system 


F or people crammed 
into the second most 
densely populated cor- 
ner of the world, those 
in Hong Kong have a strange 
fear of losing touch. The col- 
ony has one of the world's 
highest penetrations of mobile 
communications, from cord- 
less telephones to pagers. One 
person in every three - effec- 
tively. every household - has 
one such piece of apparatus. 

The fascination with mobile 
phones starts young. Plastic 
models are displayed alongside 
traditional rattles and build- 
ing blocks. It is a fair bet that 
the first word uttered by the 
Hong Kong baby is not 






“Mummy” but “Wei'”, the tele- 
phone greeting. 

None of this has been lost on 
telecommunications compa- 
nies, both locally and over- 
seas. As Hong Kong also has 
one of the most technologi- 
cally sophisticated audiences, 
the range of telephones and 
pagers is as big as it is 
diverse. Top criteria are size - 
slim versions are best - and 
long-distance capabilities, a 
must for those whose working 
day can be spent on either side 
of the Chinese border. 

Yet, the rave among white- 
socked schoolgirls and be- 
sotted businessmen alike is a 
relatively simple prodnet with 


a uniquely Hong Kong twist 
the multi-lingual pager. 

These svelte models - slim- 
mer than a packet of ciga- 
rettes and infinitely more hip 
- continue to provide all tbe 
information which is de 
rigueur for Hong Kong stu- 
dents, taxi drivers and 
tycoons. 

Hutchison and Motorola 
advertise their joint multi- 
lingual pager with a slogan 
designed to win the hearts and 
minds of today's bl-cultural 
youth iu an apt semantic 
hybrid: “Gem man Jong kung 
hoi happy hour ma?" (“Are you 
on for happy hour after work 
tonightT"). 


The Motorola Advisor, a 
pager that can be used only In 
Hong Kong and Macau but is 
loaded with functions guaran- 
teed to appeal to the button- 
happy, plus a memory storing 
up to 40 messages, also has an 
astute marketing strategy. 

The television commercials 
depict a youth with pop star 
looks and a bouquet of flowers 
who always arrives at places 
where his friends are not 
Tbe message is dear: if only 
he had a multi-faceted, multi- 
lingual Motorola pager then 
he, too. could take pvt in the 
happy-hour karaoke. 

Louise Lucas 


Close your eyes and see the difference between 
Arcam’s new Alpha 5 system of separate hi-fi 
components and anything else in Its price range- 
Experience for yourself the sound quality, 
reliability and ease of use that have made Arcam 
Britain's leading manufacturer of hi-fi electronics. 

Ignore the fact that our Alpha 5 amplifier has 
been the best-selling hi-fi amplifier In the UK for 
die past year* outselling every single one of its 
Par Eastern rivals. Don't be tempted by its 
attractive price tag which looks too good to be 
true. Just listen, and discover a quality of music 
reproduction that can only be described as 
exceptional. 

Next by again toe Alpha 5 F M tuner. Again, 
don't let (his surprising affordability seduce you. 
Instead listen to broadcast sound that is neutral, 
dear and dynamic, qualities which gained it a 
class leading Recommendation in the 1994 
What Hi-Fi? Awards. 


Finally, feast your eyes and ears on the new 
Arcam Alpha 5 Plus CD Player - quite simply the 
best high value performance CD player ever 
produced by a UK manufacturer. 

Vie are happy to report that toe critics agree 
with November's What Hi-R? giving the 5 Plus an 
outstanding 5 star review. In the magazine's own 
words: 

* There's not a hint of artifice in the sound of 
the Alpha 5 Plus: instead it just sounds together, 
highly expressive and above all right. And that’s 
as true with big classical pieces or gentle acoustic 
musk: as it is with driving rock”- 

But in the end neither we nor tire reviewers are 
toe final judges - you are. So well tell you where 
to hear Arcam for yourself. Then just listen. Close 
your eyes, open your mind and see toe UghL 


* Source - Gflf Market Research 


ARCAM 


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X WEEKEND FT 


FINANCIAL TIMES WEEKEND 


NOVEMBER 26/NO VB 



taste of 
Scotland 


Nicholas Woodsworth visits a small 
smokehouse in the Highlands 


I am not much of a fisherman. 
But I thought I was when, 
one earl? autumn evening, 
the MV Hectoria hove into 
the little port of Achiltibuie 
in the far north-west of Scotland. 
After just a couple of hours of fish- 
ing off the Summer Isles, I had in 
my possession 30 large, fat mack- 
erel. 

In I strutted to Am Fuaran, the 
local waterside pub, holding my 
fishing rod like a sceptre and feel- 
ing like an emperor about to dis- 
tribute largesse. Who, I inquired 
benignly, might be interested in the 
gift of a sack of fresh mackerel? 

I expected gasps of surprise and 
a dmir ation. There were none. I 
expected people to queue up. They 
did not One man, in that stage of 
inebriation in which the whole 
world is one's friend, said he might 
take a couple for his cat but then 
forgot about it by the next round. I 
went to bed remorseful, feeling, 
even if they were only fish, like a 
mage murderer. 

The next morning, over breakfast, 
Lottie Ross, my hospitable B and B 
host, did her best to console me. 
“There is nothing wrong with mack- 
erel" she said. “It's just that here 
on this coast we can get about any- 
thing we like. For us crabs, prawns, 
and lobsters are normal everyday 
things. My husband Jimmy will be 
back from Loch Osgaig in a while; I 
expect he’ll have caught us a few 
brown trout for tea." 

I felt a bit better. But I also felt 
carious. Amid all this ocean wealth. 
I asked Lottie, was there any kind 
of food from the sea - crustacean, 
mollusc, or finnpd fish - that she 
liked to eat but that was not a nor- 
mal everyday thing? 

Lottie thought long and hard. 
“Yes," she finally replied. “Kip- 
pers.” 

For Lottie, as for most lovers of 
the smoked herring, kippers are a 
treat and not to be over-indulged in. 
She reckons that once every fort- 
night or so is a good average. "You 
wouldn’t want them more often 
than that - they make a very par- 
ticular meal," she insisted. 
Particular they are indeed. How- 


ever rarely they are eaten, kippers 
seem to have a curious property - 
they are just about the most evoc- 
ative, memory-stirring and nostal- 
gia-producing food you can eat Lot- 
tie agreed; she can remember eating 
kippers as a child growing up near 
the Clyde. She can even remember 
specific meals - the arrival of 
wooden cases of Loch Fyne kippers 
and the feasts that followed. 

Perhaps that is because Loch 
fyne, a long, deep arm of the Firth 
of Clyde, is reputed to provide the 
best kippers in the world. When I 
put it to Lottie that the kipper was 
not a Scottish invention, but origi- 
nated last century in Seahouses in 
Northumberland - I once spent a 
holiday there and it is their prou- 
dest claim - she was indignant The 
kipper is as Scottish as tartan plaid, 
she asserted, and the world's finest. 

How could anyone prove that I 
wanted to know. “Just bead down 
the road a mile and see a man 
named Keith Dunbar,” Lottie 
replied, he knows everything there 
Is worth knowing about kippers.” 
And be did. 

□ □ □ 

Lottie and I were both wrong, it 
turned out. As a specialist who for 
more than a decade has been smok- 
ing not just herring but everything 
else under the sun - salmon, sea 
trout, eels, venison, duck, highland 
beef, wood pigeon, and Arran 
cheeses - Keith Dunbar has 
amassed great quantities of litera- 
ture at the Achiltibuie Smokehouse. 
His enthusiasm for his art has done 
him no harm - he may work on the 
wild outer edges of civilisation, but 
last year Dunbar and his small com- 
pany. Summer Isles Foods, won the 
BBC's Best Smokehouse award. I 
surprised him, hard at work in his 
smoker’s apron, but he nipped off 
happily to his files to satisfy my 
curiosity. 

Neither the Scottish nor the 
Rn glish, it seems, can claim the 
invention of the kippered herring. 
The origin of the word kdppen, 
meaning to spawn, is Dutch, and 
was applied originally to the smok- 


Kippers: 'An upper-middle class product, eaten mostly by over-553. They are favoured by the professional classes, espedafly those in the law, finance and the clergy? 


ing of out-of-season salmon. Kipper- 
ing fish is also a very old art, and 
was practised all over northern 
Europe for hundreds of years as a 
means of preventing spoilage. 

As early as the 1400s fishermen in 
southern England were talking 
about a “kipper time" in connection 
with what now seems an improba- 
ble activity - an annual Thames 
salmon fishery. 

But do not imagine, 1 was warned, 
that the medieval kipper enthusiast 
sat down to the moist, fragrant, 
creamy textured and delicately smo- 
key fish that the best kippers can 
be. One should not even imagine, in 
fact, that the medieval kipper 
enthusiast existed at all - heavily 
smoked to make emaciated, out-of- 
season fish a bit more palatable, 
heavily salted to give them maxi- 
mum storage life, the dry and leath- 
ery kipper was eaten more through 
necessity than pleasure. 

Keith Dunbar, though, is hardly 
more complimentary about the 
modem mass-produced product. 
And anyone who has tried it will 
probably agree - today’s frozen 
boil-in-the-bag supermarket kipper 
is a disappointment not tender but 


soggy, not flavoursome but taste- 
less . not subtly toned but artifi- 
cially colour- treated. Worst in this 
litany of modern sins, Dunbar 
asserts, is that some kippers have 
never seen even a lick of smoke. 

All this is partly the consumer's 
fault he admits. "We don't shop 
with our noses or our sense of taste, 

What could 
the Ramada 
hotel in Qatar 
want with over 
3001b of 
kippers? 

but with our eyes. Commercial com- 
panies know this and, invariably 
when we buy smoked fish, we fall 
for that superficial sales pitch - 
deep, dyed colours. It is a mistak e 
every time." 

Keith Dunbar's kippers are noth- 
ing but herring, salt and smoke. 
“The mass-production companies 
would laugh at my operation here - 


they deal in herring by the truck- 
load,” he said as he showed me his 
blackened smoke kiln, not much 
bigger than a large wardrobe, that 
allows him to smoke up to 200 kilos 
of fish at a time. 

"There are three things that are 
vital in kippering," Dunbar said as 
he showed me brine vats and hang- 
ing racks, smoke flues and fire- 
boxes. “The quality of the herring, 
the smoking process, and the kind 
of smoking wood used.” 

If Dunbar can get plump, high-flat 
herring from Loch Fyne he will; 
sometimes he finds Faroe Island, 
Norwegian or Icelandic herring bet- 
ter. Often commercial smokehouses 
will smoke their herring for just 
three or four hours with a smoke so 
hot it immedia tely forms an imper- 
vious crust over the kipper, pre- 
venting the absorption of smoke. In 
Achiltibuie herrings are smoked for 
18 hours using “cold combustion”, a 
method producing slow, cool smoke. 

The real secret of a good kipper, 
though, lies in the wood shavings 
that generate the smoke. Dunbar 
uses only shavings from sherry 
casks: when these are imported by 
Scottish distilleries for whisky stor- 


age they are tfigmantled and rebuilt; 
the scrolly m atur e oak shavings 
that result produce a deep, fragrant, 
subtle flavour. 

Who eats kippers these days, I 
asked Keith Dunbar, marvelling at 
the invoices for kipper deliveries 
lying cm his desk. What, for; haav-_ 
en’s sake, could the Ramada hotel 
in Qatar want with more than 300fl> 
of kippers? Who orders kippers at 
the Holiday Irm in Katmand u? . 

AH sorts of people wifi try tham, 
apparently. But strangely enough 
there Is a fairly well-defined kipper 
consumer’s profile, Dunbar told me. 
E3ppers are an upper-middle class 
product, eaten mostly by crver-SSs. 
They are favoured by the profes- 
sional classes, especially tbose in 
the law, finance and the clergy. 
Most kipper lovers are conservative 
- they harken back to the days 
when people could sit back and 
enjoy a leisurely breakfast 

“There’s something very emo- 
tional about the whole business,” 
Dunbar told me, mystified. “There 
are large numbers of elegant Lon- 
don ladies who buy kippers for their 
fathers and undies at Christmas.' 
Daddy just loves kippers’, they say 


tp me^Th^ Jba^hect^ _■ . - 

lar I have jsfarted a Kipper Club. 

Fra* £SO yoncanhave ttfo pmxs 

detivered to your doqr every 30days ; 
for six months.” 

Elegant London ladies - were all 
very wall; l however, wanted to put . 
Keith Ibrnbarfe kippers' to the real 1 " 
fftmus test — 1 an exacting Achilla- 
bum w&man l happened to know. 

- “Wonderful” sighed Lottie -Ross 
tiie next morning as ■ together we ■ 
tucked into a feast of grilled kfp- v 
pens, scrambled. eggs. hot toast and 
strong tea. "Tthas just that, fra-, 

• grant, smoky flavour ! remember as . 
a gfeL” 

I had no distant, kipper-related 
memories to dwell chl But kipper-: : 
consciousness, more evocative than: 
any Flaubertian madelane, wifi, not ; 
fail me. Next time I bfteinfco a mor- 
sel of that tender, flavoursome fish, 

I know I shall. find myself on .the 
rocky share oTAchfltlbute. ■ ■ 

■ Inquiries concerning the Kipper 
Chib may be addressed io Keith Dun- 
bar, The Smokehouse, Achiltibuie, 
Ullapool, Rossshire, Scotland JV26 
2YG. Tel: 0854622353, ■ fax 
0854-622335. . 



WIN l M IRC HA NT OF THF YF.AR N2-A> 3c '95-94 


L anson 1988 Vintage 
only £ 16 - 99 ! 


That calls for Champagne. 


Appetisers 


Last-minute party venue 

W hile the hunt is use a mobile phone in a restau- dietician who designed the In addition, cigars will be 
on for the finest rant” menu. Clarke says one may eat auctioned,- including some 

ingredients for One reader told the story of a good food and remain healthy Cuban spedals chosen for fla- 
the Christmas man in a railway carriage - and the above meal was one vour and raritv. A 44cm 




l^lfcLANSON 


'M 


W hile the hunt is 
on for the finest 
ingredients for 
the Christmas 
table, the search for the ideal 
venue for the office Christmas 
party is almost over. 

One London restaurant that 
has opened too recently to 
avail itself of Christmas book- 
ings, but would make a most 
original place for a small office 
lunch or dinner party, is The 
Heights, on the 16th floor of 
the St Georges Hotel Langfaam 
Place, London W1 (071-836 
1339). The chef is 29-year-old 
Adam Newell formerly of Le 
Poulbot, Cheapside, London 
EC2, who shows his culinary 
talent and originality in dishes 
such as: salad of grill guinea 
fowl and ratte potatoes; crab 
and scallop flan; peppered 
roast monkfish and g&teau of 
aubergine and tomato vinai- 
grette. Dinner costs around £20 
to £25 per head without wine 
(the list is sadly disappointing) 
and there Is a cheaper bar 
menu next door. Window 
tables command views across 
west London. Nicholas Lander 

■ My short cri de coeur about 
the menace posed by mobile 
phones in restaurants has 
struck a chord. Suggestions 
came in from the UK, Israel 
and Germany. They ranged 
from the creation of special 
areas' for mobile phone users, 
the equivalent of smoking and 
nonsmoking zones, to the com- 
missioning of a new H.E. Bate- 
man cartoon that shows the 
fate of “The man who dared to 




Save £ 6-00 

When you buy a 75ci bottle of 
Lanson Vintage Champagne. 
" cram! single beet:* price £22.99.) 


use a mobile phone in a restau- 
rant" 

One reader told the story of a 
man in a railway carriage 
interrupted by a fellow travel- 
ler ngtng a mobile p hone. The 
man expressed interest in the 
phone, was given it to look at, 
and promptly threw it out of 
the window. 

But all readers agreed that 
restaurateurs should display a 
prominent sign asking mobile 
phone users to leave their 
phones with the receptionist 
during the meaL If they do not 
one-liners to be remembered 
include: Td rather not hear 
about you and your probation 
officer!” 'Til ring your neck” 
or finally, and most effective if 
said by a woman to a man: 
“Kindly put that thing away!” 
Nicholas Lander 

■ A light lunch prepared by 
Rowley Leigh, chef-proprietor 
of London's popular Kensing- 
ton Place: scallops with ceps: 
noisettes of venison with 
pumpkin purge and tomato 
and aubergine gratin followed 
by baked tamarillos and 
vanilla ice. To drink there were 
choice wines from the cellars 
of the London wine merchants 
Bibendum: a delicious Con- 
drieu; Cabernet from the Wai- 
m arama Estate in New Zea- 
land; Recioto di Soave and 
Niepoort port 

Did I say a Light lunch? Do 
that five days a week and you 
will almost certainly be mak- 
ing an urgent appointment 
with your doctor. But not 
according to Jane Clarke, the 


A luxury smoked 


dietician who designed the 
menu. Clarke says one may eat 
good food and remain healthy 
- and the above meal was one 
example. 

Sounds too good to be true? 
Let us hope tt isn’t Sceptics 
can make Inquiries to Jane 
Clarke on 071-823 5323, fax 
071-823 5110. OUes MacDonagh 

■ Sotheby’s first wine sale tat 
Zurich for many years takes 




WJM£iijRg-4»MiiMairA/iCE «w«v ■ nriMy, °f Ring our Direct Order 
rrr*uc QBTC.MU7 / Line 0672-63194 now/ 


place on Friday, December 9 at 
the Hotel Baur au Lac and is 
expected to fetch £500,000. It 
coincides with Sotheby’s 250th 
anniversary year and the 2Sth 
anniversary of Sotheby’s Swit- 
zerland. 

Chateau Cheval Blanc 
1945 > '62,’64,’82,’85,’88,’88 and '89, 
La Fleur Petrus '79 and '86, 
vintages of Margaux, Lafite! 
Latour, Pichon-Lalande, Cos 
d’Estoumel and Ducru-Beau- 
caillou are included. 

There are some interesting 
estimates: SFrS.OOO-SFrio.ooo 
for a dozen bottles of PStrus 78 
and SFr6,000-SFr7000 for a 
dozen bottles of '67 Yquem. 
Sotheby's is hoping a single 
of the ’45 Yquem will 
fetch SFrl,000-SFrl l 30Q. 


JEROBOAMS 


In addition, cigara will be - 
auctioned, including some 
Cuban specials chosen for fla- 
vour and rarity. A 44cm 
Havana "Le jeroboam ,de 
Gerard Pftre et Ffls” is expec- 
ted to net SFr400-SFr€00. No 
doubt the buyer will either 
want to share it with friends or 
smoke it over several uninter- 
rupted days. 

Seriously, the number of 
exceptional wines from rare 
vintages might make a very, 
acceptable Christmas or anni- 
versary gift, especially since 
there are a number of small' 
tots- JiU James 

M Ha mpton Court Palace still' 
has places available on: its 
Tudor feast lecture tours, run-, 
ning from now until spring 
next year. Specialist guide- 
lecturer Sue Jenkins will talk 
about Tudor food, cooking 
methods, kitchen equipment . 
and diet The tour will take 
place in the palace’s royal 
kitchens, which were Hpgfgneri 
to feed several hundred- Cost 
of the tour (on selected Thurs- 
days frran llam to l£30pm) is 
£15. Details on 081-781 9540. JJ. 

■ A welcome sign that under 
energetic chairman Adele Biss, 
the British Tourist Authority 
i s tak ing a more active role in .. 
Promoting British restaurants, ■ 
is the new Guide to Asian Res- 
tadrants in London. Financed ■ 
by the BTA and Qanfcas,70#)0 
copies of this guide to ' 39 of 
London’s best Chinese. Thai 
Indian and Japanese restau- 
gnts are available free from 
OTA Asia offices and are being 
distributed to Qantaa passen- 
gers arriving in the UK. NL 



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Try the rakia, but hang on to your head 

Giles MacDonogh visits Bulgaria. He has a meal to remember with a retired cavalry officer and sees the problems of the country's wine industry 


I know now that the only 
way to deal with the 
after effects of home* 
made rakia is to eat a 
large bowl of shkembay 
tchorba, liberally dosed with 
pickled garlic and scattered 
with chilli pepper seeds. 

I learned as much in the 
pretty old town of Veliko Tur- 
novo in Bulgaria after tHrmw 
with a remarkably hospitable 
retired cavalry colonel and his 
wife. 

As ever, the meal had begun 
with a plate of salad an^ a 
gl ass of rakia, the Bulgarian 
national drink. It is a like 
an Austrian Obstler a 
schnapps distilled from what- 
ever fruit there is to hand 
The colonel was proud of his 
rakia. I recognised that home- 
made feel as it burnt its way 
down my oesophagus stripping 
away any form of protective 
lining it encountered along the 
way. Tears appeared In the cor- 
ners of my eyes. What kind of 
alcohol level did it have, I 
asked hoarsely? Not more than 
45 degrees, said the colonel 
unconv incing ly. I would have 
bet good money it was 10 more. 

The colonel cheerfully refil- 
led my glass and raised his 
own in a toast 
I was relieved when my 
salad plate was taken away 
and the need to swallow the 
firewater passed. We ate one of 
Bulgaria’s best little dishes: 
red peppers filled with feta and 
beaten egg, dusted with flour 
and fried in batter. Then the 
colonel’s wife served her spe- 
cial schnitzel, flavoured with 
marjoram and also dipped in 
beaten egg. 

Later, some little strips of 
ham made their app e arance as 
we had not finished the wine 
(the Bulgarian shuns drink 
unaccompanied by food). 
Finally, a sweet cake appeared 
laced with something like a 
Rhenish ApfelkrauL a reduc- 
tion of apple juice. 

I cannot have drunk more 
than a couple of tumblers of 
rakia but the damage was 
done. Shkembay was the only 
hope. 

Shkembay is p erhaps the one 
area in which the Bulgarians 
and the Romanians make cam- 
man cause. North of the Dan- 
ube it is called ciorba di burta. 
or sour-stomach soup. The 
•words tchorba and ctorba both 
derive from the -'Turkish word : 
fix 1 soup and this was the broth 
which fuelled the janizaries,' or 
Christian guards, of the- Otto- 
man army. It presumably gave 
them the force to fight 
Classic shkembay should be 
brimming with whole cloves of 
garlic and bug, juicy chunks of 
tripe. If you are suffering as 
much as I was, you add same 
more, pickled garlic and more 
pepper too. 

Bulgarian cookery is simplic- 
ity itself. A salad, such as the 
popular shopski salata (which 
refers to the people of Sofia), 
with Its tomatoes and grated 
feta, is served with a glass of 
rakia. A soup is often served, 
and sometimes a sort of 
assiette volante in the form of a 
1 psmcakp fined with meat. Next 
comes a little plate of kebab or 
schnitzel; or sometimes a 
cheese dish such as the kash- 
kaoal or yellow cheese, dipped 
in batter. 

One of the most pleasant 
meals I ate in Bulgaria was 
. also in Veliko Tumovo, in the 



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A cafd converted from a private house In Veliko Tumovo: Bulgarian cookery is sknpEeity itself 


Mehana (or tavern) Hadji Min - 
cho, in the old town. I ate rus- 
tic potato soup and mutton 
sauteed with onions while a 
singer called Petya sang me an 
apparently lewd song about a 
woman caught pilfering black- 
berries. 

Meals are not over-generous, 
little slivers of meat are fre- 
quently served, in good old 
Communist Block style, under 
a covering of cheese. The 
cheese is either white (feta or 
sirene) or yellow (kashkaval). 
The Party bad its own gastro- 
nomic tastes, as a Bulgarian 
friend remembers on the one 
occasion he was invited to the 
Politburo guest house (now the 
Hotel Rila) in Sofia for lunch. 

The room was filled with 
plump little men in shabby 
brown suits with pools of 
sweat under their arms. They 
were all fetching a treat from a 
buffet and licking their lips as 
they conveyed it back to their 
seats. The dish turned out to 
be whole sheep’s heads - eyes 
and all 

Now that the Politburo is no 

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more, the old members might 
well be working in Sofia's cen- 
tral market. I was flabber- 
gasted by the linguistic talents 
of one of the stall holders who 
addressed me first in fluent 
Italian; then moved effortlessly 
into German until, learning 
that I was English, he spoke to 
me in my own language. 

The simplicity of Bulgarian 
food may have something to do 
with the comparative youth of 
the state combined with 40 
years of communism. 

After the Bulgars (with a lit- 
tle encouragement from Glad- 
stone) ejected the Turks a cen- 
tury ago, the new nation 
borrowed many of its culinary 


ideas from elsewhere. 

From France they imported 
the verb “paner” to cook in 
batter (this appears on tourist 
menus as pane, as in “brain 
pane"); from Hungary came 
palatschinken or pancakes; 
from Russia, a taste for little 
smoked fish. More recently 
culinary attention has turned 
to that bulwark of capitalism, 
America. 

A provincial hamburger, 
however, turned out to be a 
fairly crude attempt at the 
genre: a roll was filled with 
what tasted like spam, 
together with a few slices of 
cucumber and some feta 
cheese with tomato ketchup. 


The restaurant business is 
booming in Bulgaria for the 
first time since 1947. People are 
free to open what they wish. 
Before 1980 there were about 10 
restaurants in the capital, 
Sofia. Now there are hundreds. 

But while you are no longer 
stuck for choice as to where to 
go, there is little variety when 
it comes to the food on the 
plate. So far, the only post- 
communist culinary inventions 
are the doner kebab and the 
hamburger. We must give 
them a few years yet In the 
meantime I counsel anyone 
going to Bulgaria to apply 
their palates to a good bowl of 
shkembay. 


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T here is something 
odd, not to say 
unsettling, about sit- 
ting in a restaurant 
in one erf the more remote cor- 
ners of old Europe and having 
the waitress bring you a bottle 
of wine on which the label says 
that it was bottled for the 
exclusive use of J Samsbury, of 
Stamford Street, London, SE 1 . 

We Britons are familiar with 
Bulgarian wine now, but per- 
haps less aware of the turn of 
events which led to Britain 
becoming one of Bulgaria’s 
prime markets. 

Bulgaria was designated a 
wine-producing state for the 
entire communist block under 
the Comecon agreement of the 
late 1940s. Until the arrival of 
Gorbachev, the Soviet Union 
provided its main market. Far 
from liberalising the Soviet 
state, one of Gorbachev’s first 
moves was to ban drinking in 
the Communist Party. This 
resulted in an unexpected blow 
to Bulgaria's wine industry. 

Fortunately for the Bulgar- 
ians, their wines had begun to 
attract attention in certain 
western markets, notably Ger- 
many and Britain. From the 
mid-1980s onwards the best 
wines made their way west 
By some curious irony, the 
kolkhoz system, which had 
destroyed the old peasant vine- 
yards on the hillsides and 
brought the vines down on to 
the productive (but not nearly 
so promising) plains, proved a 
boon to British supermarket 
buyers. 

Here was a ebann* to pur- 
chase huge quantities of cheap, 
decent quality wines for their 
branches. The price they paid 
was shoring up Zhivkov’s 
regime with a little much- 
needed foreign capital. But at 
the time no (me cared much 
about that. Attention was 
focused on South Africa. 

The success of this change of 
direction was short-lived. In 
1989, Bulgaria underwent its 
own version of the Velvet Rev- 
olution. 

Privatisation plans, voted as 
early as August 1991, were 
finally enacted in the course of 
the following year. Laud was 
to be given hack to those who 
had owned it in 1947 (or their 
heirs). 

Many of the wineries had 
been constructed by the state, 
hut some had not and in those 
cases there was a good deal of 
chicanery about giving them 
back; but, at the time of writ- 
ing, a fluid are already in pri- 
vate hands. 

Confusion reigns. Not least 
because of the uncertainty 
engendered by the probable 
return of the communists (now 
disguised as the Bulgarian 
Socialist Party) in the Decem- 
ber elections. 

In the two years following 
the privatisation decree, more 
than 5m Bulgarians, from a 
population of just &5m. have 
become properly owners. 

Political commentators say 
the BSP will not be able to 
proceed against this new prop- 
erty-owning class without 


bloodshed, they will, however, 
try to slow down the pace of 
privatisation. They will also 
direct business to the state- 
owned wineries rather than 
the new private ones. 

In many areas the vines 
themselves are in a lamentable 
state. Already in the 1980s 
declining production meant 
that whole vineyards were left 
to die. 

Now the need to compensate 
the state for “improvements" 
made to the land during the 
40-odd communist years, has 
resulted in some people refus- 
ing to take back their land. 
They prefer to wait until the 
vines have died. That way the 
need to pay money to the state 
in compensation will be invali- 

Bulgaria is in 
the throes of a 
revolution 
comparable to 
that which 
took place in 
France 200 
years ago 

dated. 

If this process is allowed to 
continue it could mean that 
both state and private wineries 
will have problems putting 
their hands on grapes to sat- 
isfy their customers in the 
west 

m the new private sector 
there is considerable interest 
in how the British buyers will 
jump. Will they continue to 
buy from the more efficient 
state-run wineries such as 
Russe on the Danube, or will 
they turn to the new private 
companies such as Lovico in 
Suhindol? 

Konstantin Madjarov. who 
got his family winery In Staro- 
boliiski back only months ago. 
is bitter about both the Bulgar- 
ian state and the western buy- 


ers. The new regime has 
proved itself uninterested in 
agriculture and his impression 
is that the west has no desire 
to see the development of pri- 
vate wine production in Bul- 
garia. Foreign investment has 
so far been made in Hungary, 
Romania and Moldova, but not 
in Bulgaria. 

Madjarov may be right The 
British buyers will almost cer- 
tainly continue to buy where 
they may be assured of decent 
quality in sufficient quantity. 

In the meantime, the Bulgar- 
ians’ old friends in Russia have 
come to the rescue. Yeltsin’s 
land is not the sober place it 
was under Gorbachev and 
demand from Russia is high. 
The trouble is that they only 
buy cheap wine. 

Driving back from Plovdiv to 
Sofia I could still make out the 
old south-facing terraces where 
the best grapes were grown 
before 1947. The thought of 
replanting these good sites 
filled me with a mild optimism. 

I found something of the 
same spirit among Sofia's lead- 
ing political scientists. They 
pointed out that Bulgaria was 
in the throes of a social revolu- 
tion comparable to that which 
took place in France two centu- 
ries ago. 

A new social class has come 
into being. One of them asked 
me if I had noticed the hordes 
of horses and donkeys which 
now clutter up the Bulgarian 
roads: “The old communists 
hate Hww; they see TTiom as a 
return to pre-modern times. 
This is not true: the donkey is 
the first step to independence." 

The same peasant-farmer 
who invests in a donkey win 
look after his newly acquired 
vines, and who knows? Maybe 
one day his son will stop tak- 
ing the grapes to the co-opera- 
tive and make the wine him- 
self? 

It was a cheering argument 
and one which continued in a 
local Sofia restaurant over a 
bottle of Young Vatted Meriot 
(bottled exclusively for Safe- 
way). 




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T*™*! 196* Bordeaux Sup&ceur AOC 

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?« **■ *«"* r*- Regard by Bordejux »pen , Dccazes family. A beaulifoUy 

David ftppeneoin osYw of the balanced, richly Fruity claret 

I—-- most venerable growths of l - — "i that typifies ihe virtues of this 

Saint-EmUlan — a huge mine _ magnificent vintage. 

full -blown bouquets of piurrts and 
tarry truffle scents. Chi the palate 
the wine is powerful dense, 
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I I5S* l ' i "' Ch&teaa Bate de Gatat 1990 J"" (MMib | CUtaau Lamotte 

/rr\ I COTES DE CaSTTLLON AOC i *“***■ Ti6«mr 1992 


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S moked salmon was 
first, followed by oys- 
ters, as the choice 
items that greedy 
people bought for 
lemselves and sent to their 
iends as mail-order presents 
ir the festive season. Now foie 
ras, long favoured at top 
ibles, is the most fashionable 
ire with which to celebrate 
le feast of Christmas. 

Foie gras is a more ticklish 
reposition to buy than 
moked salmon or oysters 
ecause, unlik e those very 
ritish foods, foie gras is for- 
ign territory. Valiantly, how- 
/er, the Weekend FT’s food 
ad drink team agreed to 
search and sample what is 
railable to establish best buys 
ir readers. 

First, a few basic facts about 
■ie gras. Foie gras, which sim- 
y means fattened liver, can. 
ime from goose (oie) or duck 
anardi Whether goose makes 
iperior fine gras to duck, or 
ce versa, is open to endless 
rgument 

Goose is rarer now. and more 
epensive, because these birds 
■e more labour intensive to 
use. Experts agree generally 
lat goose foie gras is richer 
ad smoother, althoug h duck 
aids to be failer-flavunred. 
Foie gras may be sold raw or 
30ked to varying degrees, 
aw and vacuum-packed, it 
eeps for just two weeks and 
lust be refrigerated. 

Cooked lightly and freshly 
sailed fresh in English, mi-cuit 
1 French), wrapped in foil and 
acuum-packed, and kept in 
le refrigerator, it has a shelf 
fe of three to four weeks. 

The next rung up the preaer- 
ation ladder Is known as 
end-conserved in English, 
end-conserve in French. Bat- 
ed or tinned, this also must 
e stored in the refrigerator, 
/here it wiD keep for about 
nor months. 

Finally, there is fully-pre- 
erved foie gras - what the 
ranch call en conserve - 
drich is cooked at length and 
terilised in jars or tins so that 
. does not need refrigeration. 
: can be stored safely in a lar- 
er or cool larder-cupboard and 
dll keep for about two years. 


As preserved foie gras is the 
only sort suitable for sending 
by mail order, we restricted 
our comparative tasting to 
products in this category. 

We aimed to get oar supplies 
from the food halls of depart- 
ment stores, importers pre- 
pared to sen retail as well as 
wholesale, and small specialist 
companies. 

The services offered were 
varied, to say the least This 
soon became dear to the Week- 
end FT’S Anna Lambert, who 
organised the orders to be des- 
patched for our tasting. 

Food balls generally seemed 
Impersonal and expensive, 
geared better to selling ham- 
pers than the single Jar or tin 
of foie gras that more suitable 
for mailing to great-uncle 
George. 

What is more - and presum- 
ably with the flas hy end of 
their lucrative international 
clientele in mind - they 
seemed to concentrate on foie 
gras products with truffles and 
other fancy trimmings rather 
than good, plain foie gras 
entier. 

Of the importers, W. G. 
White was wonderfully infor- 
mative and helpAit alas, its 
business is wholesale so it does 
not offer mail-order service. 

Repertoire, which does, 
showed a willing spirit initially 
but ineffidency in practice. 

After four frustrating 
attempts to contact Cutters 
(none of our calls was 
returned) we gave up on them. 

We found that only the very 
small specialist companies 
were knowledgeable about 
their products and willing am* 
able to talk to us. They tended 
to be much better at supplying 
orders exactly as requested, 
and delivering them when they 
promised. 

We asked for three different 
sorts of preserved fine gras, all 
100 per cent pure mid simple. 


■ Foie gras d’oie entier en 
conserve. 

Entier Is a key word here. 
Foie gras labelled like this 
must legally consist of whole 
lobes or a large piece of liver 
(with a small piece permitted 
only to make up weight). Sam- 
ples tried were: 

1. Andignac of Landes (sup- 
plied by Gourmet Products of 
France, £2240 for a 180 gram 
jar). 

2. Auguste Cyprien of Peri- 
gord, (supplied by Clark Trad- 
ing Co, £1940 a 130 gram tin). 

3. Jean-Pierre Picot of Gascony 
(supplied by Traiteur Pagnol, 
£25 per 160 gram jar). 

Goose generally found less 
favour than duck but one 
taster voted the Picot goose a 
dose second best to the overall 
winner, approving its “fine col- 
our, strong appetising nose and 


Sweet and 
golden 


T here is a theory, in the 
arcane subject of 
matching food and 
wine, that a region’s 
i wn liquid produce generally 
> oes best with its sdUd (edible) 
; latter. It seems rather tenu- 
; us to me. Whisky may be deli- 
ious with haggis and Ribera 
el Duero with the pitifully 
i hort-limbed milk-fed lamb 
■ a ten in that part of Spain, but 

in with jellied eels? Bandol 
rfth bouillabaisse? 

We could discuss this fasd- 
tating subject for many weeks, 
nd certainly the wines that go 
est with foie gras are in gen- 
ral produced in regions where 
tucks and geese are never 
bowed to be peckish. 

Because fine gras is so rich, 
t tends to make all but the 
oost sumptuous red wine taste 
atber thin and puny, whereas 
; sweet, golden liquid can 
eem just the job - especially 
rben the fine gras is served 
nth something sweet as it so 
Aon is. 

The south-west is not Just 
'ranee's centre for foie gras 
traduction, but also for her 
west wines: Sautemes most 
urtably but also Monbarillac 
md, from further into foie gras 
erritory, moeBeux (sweet) wgr- 
4ons of Jurancon and Pacher- 


enc du Vic-BlhL These last two 
are often easier and more 
refreshing to drink young (le 
in single-figure prices per bot- 
tle) and in my experience go 
particularly well with foie gras. 
Try Adnaxns of Southwold, Suf- 
folk, Lea & Sandeman of Lon- 
don SWI0 and, of course, the 
determinedly francophile Nic- 
olas Shops in London for exam- 
ples of these aDDellatkms. 

On the opposite side of the 
hexagone both foie gras and 
some sweet white wine to 
drink with it can be found in 
Alsace - although it can be 
devilishly difficult to tell from 
the label just how sweet an 
Alsace Vendange Tardive or 
Selection de Grains Nobles 
actually is. Many less expen- 
sive Alsace whies without 
these riper-sounding words an 
the label are actually made 
quite sweet enough to drink 
with foie gras. RoHy Gassmann 
from Bibendum, London NWl, 
Schoffitt from Oddbins and 
Adnaxns, and Falter from O W 
Loeb, traditional independent 
merchants and now Oddbins 
spring to mind. For a wide 
range of Alsace wines, La Vig- 
neronne of SW7 and 

Wine Rack are hard to beat 




CHRISTMAS FOOD AND DRINK 


Foie gras feasts and top 

Philippa Davenport tells you all about fattened duck and goose Hv^ 


rtll 


4 * Kfl 


t ,fe in* 0 * 




good length". 

Others enthused less, 
describing it, among other 
things, as “somewhat 
stifP “dense” , "too rich" and “a 
little lacking in flavour". 

The Andignac sample 
pleased by virtue of its “pink 
flush appearance”, "good tex- 
ture” and “very good flavour - 
but not what I would expect 
from goose". It was also rated 
“rather coarse”, “chewy in the 
mouth” and “cloying in after- 
taste”. 

The Cyprien sample, 
a p proved by some for its tex- 
ture and “mealy” flavour on 
the one hand, also provoked 
the comment “rather coarse, 
more like a brawn or a pork 
terrtne". 


France. £17.50 per 180 gram 
jar). 

2. Auguste Qyprien of Perigord 
(supplied by Clark Trading Co, 
£18 per 130 gram tin). 

3. Jean-Pierre Picot of Gascony 
(supplied by Traiteur Pagnol 
£2440 per 160 gram jar). 

We ail prefered duck fine 
gras to goose, and were unani- 
mous in giving our top vote to 
the Cyprien duck. The general 
gist of our comments here was 
good clean taste, good texture, 
good finish, good value. 

Again opinions were fairly 
united about the Andignac 
sample: “dense flavour", "quite 
full in the mouth”, “almost 
sweet” and the word “buttery” 
cropped up repeatedly; while 
the Picot sample elicited the 
description “cheesey” from 
almost all the tasters. 


■ Foie gras de canard entier 
en conserve. 

Whole lobes once again but 
this time duck rather than 
goose livers. Samples tried: 

1 . Andignac of Landes (sup- 
plied by Gourmet Products of 


■ Bloc de foie gras de canard 
en conserve. 

Bloc or loaf Is a cheaper way 
to eat 100 per cent foie gras, a 
smooth blend oifioie gras trim- 
mings tha t is usually, but not 
always, studded with little 
nuggets of lobe - look for the 
words " avec morceaux" on the 
label. Samples tried: 

1. Auguste Cyprien of Perigord 
(supplied by Clark Trading Co 
£12.75 per 130 gram tin). 


2. Jean-Pierre Picot of Gascony 
(supplied by Traiteur Pagnol, 
£7 per 65 gram tin). 

Only two samples of bloc as 
Gourmet Products of France 
sell it fresh not fully preserved. 
Results were disappointing 
here. "Quite nice flavour and 
good length bat not special” 
was the most enthusiastic 
response that could be mus- 
tered for the Cyprien sample. 

Picot fared little better. 
Indeed it was described as 
“meatfly unsubtle, cloying, 
coating the mouth disagree- 
ably” by one of our team. 

The overall winner by far, 
the best buy on an counts by 
common consent, was the foie 
gras de canard entier in a tin 
by Auguste Cyprien from 
Clark Trading. The only pity, 
we agreed, is that glass jars 
make more handsome and 
impressive gifts than tins. But 
taste is the most important 
thing , and the fact that tins are 
lighter and less fragile is an 
obvious postal advantage. 

It is undeniably true that the 
much more perishable fresh or 
mi-cuit fine gras is superior to 
fully preserved - the lesser heat 
treatment it has undergone 
permits texture and flavour to 
retain greater delicacy. 

With this in mind, London- 


ers may like to note that Gour- 
met Products of France sells 
fresh whole lobes of goose at 
£35 and duck at £29 per 300 
grams, and en bloc of duck at 
£16 per SO grams. Traiteur 
Pagnol also sells fresh lobes at 
£29 and £25 per lb for goose 
and dude respectively. Remem- 
ber, them products need to be 
kept unde r refrigeration so 


Chef Gordon 
Ramsay’s 
terrine was 
sensuous - 
food for 
the gods 


take a cool bag when shopping. 
They are unsuitable for mafl.- 
ing . 

The greatest treat of afl - as 
damflmg i y diff erent as fresh 
alpine strawberries just picked 
from the wild versus a jar of 
ordinary strawberry jam - is 
high quality raw foie gras 
cooked to order. 

Foie gras lightly sauteed and 
served hot on salads, or gar- 
nished with quickly fried slices 
of apple or gently warmed 


grapes, makes an exquisite fast 

feast far a dear occasions. The 

other great foie gras dehcacyis 
a freshly-made terrine. Tnls 

has to be cooked ahead ana is 

a spectacular party piece. ' 

To remind ourselves of this 
feet we tasted a terrine (A fine 
gras specially prepared for 9 s 
by Gordon Ramsay, of the 
mnch-lauded Aubergine restau- 
rant at U Park Walk, ixnufon 
SWW (teU07L332 3449). SflkHy 
smooth, with a sensuous mdt- 
in-ttemoath texture, .fine lin- 
gering flavour and a -shiver of 
shimmering jelly on the side, it 
was food for the gods. 

As my colleague Nicholas 
Tjmrtar pointed oat, when you 
kigfo something Eke fins, and 
you think of the time and 
jn g T pfliftnte that hWVfi gQPfi mtO 
its making the restaurant 
charge of £12 per portion does 
not seem exorbitant:. . 

Aubergine does not, alas, sell 
its terrine erf fine gras as a 
take-away. However, terrine of 
foie gras can be cooked to 
order for collection, from the 
House of Albert Roux. 

Or, if you have the time and 
eojqy culinary adventures, you 
could buy raw fine gras aim 
make your own. terrine at 
home. Gourmet Products of 
France sells raw duck fine gras 


at £40 per kilo ** unasept 
Roux at £1&S0 per lb. A «cge 
for terrine of foie gras wifi ft* 
low next week- ■ 

■ Clark TraBug, 17 Soutifr :. 
brook Road. Lee, London SEE 
gLH. Tel: 081-297 9987. Far 
081-297 9933 l Postage and pa* .; 
ing £JL85. Last orders for. 
Christmas December 19. 

■ Gourmet Products ^pf • 
France, 123 Howards .L^ 
Putney, London SWK- 6QE- 
Tel: 081-788- 6908: Fas: 08 
2732. Deliveries fteofaLcinmat , 
Postage and packing outside : 
London (suitable for preserved 
products only) EAJft par jar. 
Last orders: 28 November.- 

■ House of Afoesrt Roux; 229 
Ebiiry Street, London, SW1 
8UT. Tel: 071-730 3037. F&X: 
071-823 5043. Last orders for: : 
Christmas: December 16 l • • ■ 

■ Traiteur Pagnol, 170 
Regents Park Road.- London 
postcode. Tel: 071-888 698a Far . 
071-916 1983. Postage and pack- 
ing (suitable for preserved 
products- only) £1S0 -for the * 
first i tem plus £1 for each, addi- 
tional item to. the -same, 
addresses. Last orders Decern- 1 
berW. 

■ Harrods can supply. raw _ 
goose foie gras at 'four.- days 
notice for £35 to £40 per B* Tdt 
071-730 1234, 


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CHRISTMAS FOOD AND DRINK 



' liv 


fr. 


quality wines to savour 

Jancis Robinson goes upmarket for her seasonal wine-buying spree 

F or the last four those who simply ring around than a particular strength. Bunch group of wine mer- 221 1982). 

years, with a consci- the wholesale importers; add The May list Is supplemented chants (together with Job' line de Joy < 

entious nod to the 15 for those who, like Ch a rles throughout the year with a Arm it of London Wll, Coir 1992, £5.37. 

recession, this pre- Lea. take the trouble to scout series of pamphlet mthinriasmR & Barrow of London EC 1 ,y dry white mi 

Christmas wine him. nrnimri the htnMvc nf the whirh havn romntlu iivhulai) Whaalsr I^vtnns nf Tai.. <n Mmmho omm 


F or the last four 
years, with a consci- 
entious nod to the 
recession, this pre- 
Christmas wine buy- 
ing column has concentrated 
on inexpensive chainstore 
wines. This year things are 
looking up. If FT readers can- 
not afford to splash out a little 
on a special bottle or two for 
the holiday season, who can? 

And when it comes to wines 
selling above £8 or so a bottle, 
the best independent wine mer- 
chants have much more to 
offer than most supermarkets 
and high street chains 
The most reliable guide to 
finding the best independent 
wine merchants all over the 
UK is the (almost) annual 
Which ? Wine Guide. 

The 1995 edition is just out, 
published at £13.99 by the Con- 
sumers Association under the 
editorship of Harry Eyres, one 
of our more fastidious wine 
writers. 

He chooses as independent 
wine merchant of the year Lea 
& Sandeman, of London SW10 
and W8 - a slightly Sloaney 
firm of which 1 am also a great 
admirer. 

A good measure of an inde- 
pendent wine merchant is how 
it buys. Deduct 10 points for 


those who simply ring around 
the wholesale importers; add 
15 for those who, like Ch a rles 
Lea. take the trouble to scout 
around the byways of the 
world’s wine regions in search 
of exclusive little trouvailles. 

Actually Lea & Sandeman's 
prowls are pretty much con- 
fined to Fiance and Italy. They 
have some clever choices from 
the Mew World but taut them- 
selves to two very un-Austra- 
lian Australian Chardonnays. 

Their strength is in the wine 
world's classics (of which they 
have a constantly changing 
stock), characterful bargains 
from southern France, Valdes- 
pino’s connoisseur sherries, 
and evidence of the Italian 
wine revolution that is shame- 
fully rare in Britain. 

Vitae merchant of the year, 
so far as this year's WINE 
Magazine International Chal- 
lenge was concerned was, yet 
again. Adnams of Southwold, 
Suffolk, surely Britain's most 
confidently innovative wine 
merchant 

This much larger outfit, run 
with flair by Simon Loftus, can 
afford many more passions 
than L&S — indeed the annual 
game with its instructive and 
attractive list is to spot this 
year's weakness or two rather 


than a particular strength. 

The May list is supplemented 
throughout the year with a 
series of pamphlet wnthiurfasmB 
which have recently included 
Australia, Austria, Alsace and, 
evidence that their approach is 
non-alptaabetical, the Southern 
RhAne. 

Lea & Sandeman's shop 
prices per battle tend to be 

For personal 
service, you 
could do worse 
than an 
independent 
wine merchant 

about 10 per emit higher than 
Adnams', but premises in 
London tend to be rather more 
expensive than in Suffolk mar- 
ket towns, even rharwitng old 
Southwold. Mail order prices 
from the two merchants (those 
quoted below) are much the 
same, with delivery free for 
those spending more than 150 
with L&S, and for those buy- 
ing at least 24 (assorted) bot- 
tles from Adnams. 

Adnams is a member of The 


Bunch group of wine mer- 
chants (together with Job' 

Armit of London Wll, Coir 
& Barrow of London EC 1 
& Wheeler, Laytons of Lon. 
NW1, Tanners, of Shrewsbury, 
Shropshire and Yapp Bros, of 
Mere, Wiltshire) which is doing 
its best to m«tiu confidence in 
the independent wine trade. 

Below are some representa- 
tive examples (whites before 
reds in ascending price order) 
of the exciting wines currently 
listed by these wine merchants 
- each demonstrating the sort 
of individuality that is all too 
rare on the shelves of the 
chains »nri supermarkets. 

Oddbins is the exception to 
thin rule, ranti rming to offer 
wine drinkers evidence that it 
is on the cutting edge of the 
wine world. Some of its best 
buys frhig winter are therefore 
also included below. 

But for really personal ser- 
vice, you could do very much 
worse than track down, your 
nearest independent wine mer- 
chant, who is probably moti- 
vated chiefly by his or her 
product and a giant h e lp i ng of 

mflinsiagn 

LEA & SANDEMAN, 301 Ful- 
ham Road, London SW10 (071- 
376 4767) & 211 Kensington 
Church Street, London W8 


- 1 - 221 1982). 

line de Joy CuvSe Spe- 
1992, £5.87. Oak -aged 
,y dry white marip mainly 

m Manseng grapes (of Jur- 
acon fame). Long, lively and 
so much easier to drink with- 
out food than Chardonnay. 

Monbazillac 1990 Domaine de 
TAncierxne Cure, £8.95. Most 
wine merchants worth their 
salt have gone scouting tor a 
Monbazillac from this first 
class sweet white vintage. This 
one might need a little more 
arid tor long term development 
but is just the luscious thing 
for drinking this winter. 

Chablis Premier Cru Beau- 
roy 1992 Tribut-Dauvissat. 
eia.33. Fine, sleek, niamrin Cha- 
blis with temrir in spades. Its 
assertive aridity should revive 
jaded palates. 

Cuv6e Pierre Audonnet 1993 
Domaine Piquemal, £4.58. A 
frank, glossy Meriotibased vin 
de pays from Roussillon that 
would mabp a delightful house 
red. 

Les Dolomies Coteaux du 
Languedoc 1993, £5.58. Seduc- 
tively scented Syrah from the 
Ganigue. Full, rich and flatter- 
ing. 

Cabernet Sauvignon Olimpo 
1992, £5.98. The bottle alone 
looks worth double the price. 


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Our manager Monsieur Philippe Saunier continues to use our great wooden presses, 
fty carefully controlling their pressure we can ensure no colour from the grape skins 
finds its way into the juice, just as we have since 1743. - 


ItefiilM 


3-.rE . 



Aromatic cold turkey red. 

Domaine du Deffends Clos de 
la Truffiere 1990 Coteaux 
Varois, £7.34. A great find. 
Handsome Provencal blend of 
concentrated Cabernet and 
Syrah that should please and 
impress a wide range of pal- 
ates. A particularly stylish 
magnum (£16.95 each) would 
make a delicious present. 

Ch Le Grand Bourdieu 1990 
Graves, £7.34. Appetising, 
crisp, classic Graves with lots 
of fruit and chew. 

Vino Nobile di Montepuici- 
ano Riserva 1990 Dei. £9.40. 
Lots of punch and vigour, a 
good Boring Day restorative. 

Savigny les Beaune Les Lav- 
tores 1989 Domaine Chandon 
de Briailles, £11.95. House wine 
of Most &, this soft red bur- 
gundy would make a perfect 
accompaniment for turkey et 
al with gorgeous Pinot Noir 
fruit and nice, appetising zip. 

Cdte-ROtte 1991 Domaine Clu- 
sel-Roch, £15.86. Top quality 
northern Rhone red made by 



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talented team whose sophisti- 
cated winemaking delivers a 
plummy, rich wine that can 
already delight but will be bet- 
ter still at the turn of the cen- 
tury. 

Camartina 1990 Querriabella, 
£17.62. Sumptuous blend of 
Cabernet and Sangiovese. 
Scented, well balanced and 
already approachable 
(although better cellared for 
three or four years). 

ADNAMS, The Crown, 
Sontfawold, Suffolk 
(0502-724222). 

Pinot Blanc Rosenbourg 1992 
P Blanck, £6.15. Really rather 
serious for this useful, keenly- 
priced appeUation. A good 
house aperitif for connoisseurs 
while the rest of the household 
might appreciate the more 
obvious char ms of the Pfaffen- 
heim 1993 Pinot Blanc at £495. 

Dr Loosen Riesling 1992, 
£6.20. First-class aperitif. 
Dryish, refreshing yet scented. 
Thresher with all their buying 
power charge £5.99, without 
delivery. 

Scheurebe Kabinett Trocken 
1993 Lingenfelder, £9.75. The 
modem face of German wine - 
a dry white with lashings of 
flavour and co n c ent ratio n 

Albarifio Morgadio 1992. 
£10.75. Galicia's finest - a fine 
dry white palate sharpener 
from Atlantic-cooled Spate. 

Le Marigny Vouvray Moel- 
leux 1990, £14.75. Great hon- 
eyed mouthfuls for the end of 
the meal without any heady or 
excess of alcohol or sickly lack 
of acidity. 

Puligny-Montrachet Clavoil- 
lon 1992 Domaine Lefiaive, 
£25.50. A treat A relatively 
early maturing white bur- 
gundy from Puligny’s best 
address. 

Lirac, Les Queyrades 1990 
Andre M6jan, £5.95. Full, pow- 
erful. licorice-scented mouthful 
of southern warmth. 

M Shiraz/Pinot Noir 1992 Vic- 
toria. £690. A blend of Rhdne 
and Burgundy red grape variet- 
ies overtly traditional in Aus- 
tralia, a more clandestine mar- 
rage of convenience in 
old-fashioned burgundy, is sur- 
prisingly successful. Slightly 
jammy but fruit in all the right 
places and ready to drink now. 

Domaine du Grand Cr£s 1991 
Corb tores, £6.45. Wild southern 
French wine made by an ex-Do- 
maine de la Roman6e-Conti 
perfectionist from a high, iso- 
lated, beautiitil vineyard. 

Sablet 1993 Ch de Trignon, 
£6.75. Lively Cdtes du Rhdne. 
Villages red that should con- 
tinue to improve over the next 
two years but could be order 
from Adnams' current Rhdne 
offer in time for Christmas 
drinking. 

Vacqueyras 1990 Cuv6e Les 
Templiers, £6.95. Amazingly 
deep colour and very, very 
deep flavours. Lots of Syrah 
grapes in this blend which still 
has considerable life in it. 
Probably the best bargain of 
these three Rh&nes from 
Adnams. 

Dry Country Grenache 1992 
Rockford, £790. Non- irrigated 
yet juicy Barossa version of 
CMteauneuf-du-Pape. 

Lady Langoa 1990 St Julien, 
£9.75. Second wine of second 
growth bordeaux Ch Itooville- 
Barton, consistently reUable 
and under-priced. 

Joseph Cabemet/Merlot 1992 
Moda Amarone. GriHi, £1295. 
South Australia meets north 
east Italy in this impressively 
balanced red concentrated by 
drying tbe grapes before fer- 
mentation. Vibrant, lively, 
beautifully constructed. 

ODDBINS 

Nearly 200 shops around the 
country which try to offer the 
full range via well-educated 
staff! There are also Fine Wine 
Shops in London, Edinburgh, 
Glasgow, Oxford and Cam- 
bridge which sell smaller par- 
cels of fine wines, notably the 
gorgeous Moss Wood Chardon- 
nay at £1049. 

Reuflly 1993 Aujard Mabillot, 
£599. Very convincingly fruity 
Sauvignon from this close rela- 
tive to Sancerre. (Buy the 
Menetou Salon Cuvde Vanessa 
for £1 more if appropriate, or 
the Chilean Santa Isabel Sau- 
vignon 1994 for a rather frui- 
tier style.) 

Various north American 
Chardonnays £5.99 - £12.99 
Some real substance here, even 
in the Rex Hill and Sterling 
versions at the bottom end of 
this price bracket. At the top 
Newton and Landmark 


u 


Damaris can also offer gloss 
and some prospect of further 
development 

St Vdran 1993, Domaine des 
Deux Roches, £6.49. Not a 
M&con trying to taste like a 
COte d’or wine but an utterly 
satisfying rendition of this use- 
ful appellation, ultra-ripe for 
enjoying this winter. 

Late Harvest Botrytis Semil- 
ions 1992, £7.49 and £699 a half, 
from McWilliams and Yal- 
umba. Great rich sweet wines. 
Just the thing to make a meal 
memorable. Pity that now that 
the EU will allow these 
‘stickles' in, Australian grow- 
ers have lost patience with 
producing them. Buy in quan- 
tity, especially the rather more 
concentrated Yalumba version. 

Various 1993 Alsace whites, 
Domaine Wembach, £6.99 - 
£1549. These Faller wines are a 
dream - very rich and power- 
ful, even the Sylvaner. Both 
the Gewurztraminer Reserve 
and the Riesling Ste Catherine 
are sublime (£1049 and £1549 
respectively). The less expen- 
sive Sylvaner and Pinot Blanc 

Temble labels. 
Great value. 

A brace of 
exciting, 
old-fashioned, 
thoroughly 
full-bodied 
reds 

would make great aperitifs. 

Chablis Premier Cru Mon foe 
de Tonnerre 1992 Louis Michel, 
£11.99. Lively, pure, very 
slightly lean. Just the ticket 
for mornings, or evenings, 
after - and a very good price. 

Condrteu 1993 Cuilleron, 
£19.99. Not cheap but a taste 
thrill for most who encounter 
this extremely well made old- 
vine version of fashionable 
Viognier in its home town. Ch- 
Grillet lookalike bottle. 

Peter Lehmann Vine Vale 
Shiraz 1992. £3.99. Very silly 
price for a wine with this much 
bang. Great value for enthusi- 
asts of Barossa's chocolate- 
thick reds. 

Havenscourt Pinot Noir and 
Cabernet Sauvignon, £4.99 
each. California is awash with 
well-made wine available in 
bulk (no-one wants to sully 
their carefully cultivated win- 
ery name with cheap estate- 
bottled stuff). Typical of Odd- 
bins to create its own label to 
take advantage of this phenom- 
enon. Best value by far are 
these two reds, the Pinot Noir 
having a bit of age and rich- 
ness to it, the Cabernet being a 
mouthfol of very frank, lively 
fruit 

Peter Lehmann Clancy's 
1992, £6.49. A Barossa Valley 
blended red with an element of 
sophistication. 

Chzkteau Reynelia Basket 
Press Cabernet/Merlot and 
Shiraz 1992 £6.49 each. Temble 
labels but great value for 
extremely traditionally made 
wines from McClaren Vale. A. 
brace of exciting, old-fash- 
ioned, thoroughly full-bodied 
reds. 

Sterling St Donstans Reserve 
1991, £6.99. Bargain price for a 
mineral-scented Cabernet 
blend from one of the Napa 
Valley’s pioneer wineries (not 
coincidentally owned, like Odd- 
bins, by Seagram). 

St-Joseph Vie il les Vlgnes 
1992 Cuilleron, £1049. Scented, 
full, very sleek and modern. 
Ready to begufle already. Not a 
rough edge in sight. 

Bourgogne Hautes Cdtes de 
Beaunes 1992, Jayer-Gities 
£11.99. Scented Pinot Noir fruit 
with good, serious concentra- 
tion. Just the thing for turkey. 


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XIV WEEKEND FT 


• ’ ia na i ffP’w^ 1 & - 


FINANCIAL TIMES 


WEEKEND NOVEMBER 26WOVEMB£^ 27 1994 



TRAVEL 


l 


On the 

Cherokee 

trail - 


by llama 

Mark Hodson spends a night 
haunted by the Indian spirits 
and ghosts of America's past 


“ Hold on to your llamas, " said 
Laura, " and whatever happens, 
don’t let them eat the rhododendron 
leaves. ” 

W e grabbed the reins 
and set off on a 
trail into the heart 
of the Great Smoky 
Mountains. There 
were 13 of us, including two guides, 
and sis Uamas each carrying 1001b 
of food and camping equipment 
We would be sleeping out for just 
one night but this was America so 
no one thought it strange that we 
had packed tables, chairs, inflatable 
mattresses, a few bottles of char- 
do nna y and enough food to feed a 
small village. 

Up close, our porters were sur- 
prisingly TianriwniTiB They had SOft 
fluffy coats, large doleful eyes and, 
contrary to expectations, they nei- 
ther spat nor had fearful breath. In 
fact Hamas hke to check humans 
for bad breath. Each animal walked 
op to us in turn and took a quids. 
sniff before deciding we were 
friendly and har mless . 

For reasons that were never 
og pinirwH to me, llama trekking is 
taking off across the US and there 
are 50 or 60 specialist tour groups 
from Washington state down to 
Georgia. Our hosts on this trip were 
Laura and Mark Moser, a young 
couple who live on a small farm in 
Sw annawna, North Carolina, where 
they breed Hamas with the loving 
devotion of a Doctor Dolittle. 

The animals behaved impeccably 
in every department but one. None 
could resist the lure of the over- 
hanging rhododendron blooms 
which dangled enticingly from their 
branches, plump mid white like for- 
bidden fruit 

We were not being cruel by deny- 


ing them the chance to nibble, for 
rhododendrons are toxic to llam as 
and just a few mouthfuls can kill. 
As we ambled through the forest 
over carpets of moss and throogh 
glittering mountain streams, the 
animals would mak e sudden, dart- 
ing lunges at the poison leaves and 
we had to tug hard at their reins. 

Our group was a random mix of 
mid-America. There was a lady 
from In diana, a couple from Michi- 
gan, a young family from Charlotte, 
North Caro lina, and a couple from 
upstate New York who had brought 
their teenage daughter for her grad- 
uation present 

The children fell for the llamas 
immediately. An eight-year-old girl 
called Barney took charge of Chero- 
kee. the smallest, and was so indul- 
gent with him that he managed to 
grab a big mouthful of rhododen- 
drons. Laura spotted the lapse and 
chased him through a brook to 
yank the leaves out of his mouth. “I 
had to massage his gums to make 
him let go of it” she explained. 
■They like that” 

t .lamas tend to be docile and 
calm, even a little afoot but each of 
our animals had a riistrnrt- personal- 
ity. Buckshot was a burly 400- 
pounder and a natural leader, Jak- 
arta grumbled constantly with a 
running commentary of sighs and 
grunts. Lancelot the eldest at nine 
years, was g ettin g short-tempered 
and listless as he edged towards 
retirement All were male; the pres- 
ence of females can cause the ani- 
mals to squabble or show oft 

We tramped in single file b eside 
high waterfalls and through thick 
fern. Mark pointed out honey locust 
and chary trees, tulip poplar and 
doghobble. If we ran out of food 
there was always wild yam and 
Canadian hemlock which we could 



View with tanas: trekking with animal porters is growing in popularity across the US 


flavour with sweet shrub leaves. 
When our feet grew tired we could 
boil down the bark of the dogwood 
tree, which Confederate troops dis- 
covered during the Civil War had 
pain-killing properties similar to 
those of aspirin. 

Every half hour or so we halted 
for “ potty stops". When one llama 
decided to relieve himself, the one 
behind would get the same idea 
s tar tin g a chain reaction. 

We set op camp in a clearing on a 
ridge with views of the dense forest 
below and, after pi tching our tents, 
found we were just yards from an 
Indian burial ground where some 
two dozen unmarked graves were 
arranged in a rough square. 

Once, all this had been Cherokee 
land. In the 1830s the tribe was 
driven west to Oklahoma on what 
became known as the Trail of Tears. 


It was a shameful episode in Amer- 
ica's history and people in North 
Carolina still hang their beads a 
little when they speak of it 

A round 500 Cherokee 
resisted the move and 
holed out in the moun- 
tains until 1840. when 
the government allotted 
them a 56,000-acre reservation near 
the Tennessee line. Some say Indian 
spirits still haunt these hills. 

1 had been on the reservation the 
previous day and it was a grim 
sight. The main settlement was a 
tatty strip of cheap motels, souvenir 
shops and “bar-b-q" shacks. At the 
Honest Injun Trading Shop, tourists 
bought plastic tomahawks and 
Cherokee toflet-roD holders made in 
Taiwan. 

There was a tattoo parlour, a 


Mmk 

tumbledown clapboard house with a and Alabama. tree top and- maybe _one or- two 

sign art-war ti sing “FISHING PER- Some people come just to stare at minds toned to t frfeJn ffians buried 
mtts PIG SKINS,” and half a drwan the natives. Good oY boys with, nearby- ff their tgpfrla.stiQ haunted 
teepees by the roadside where for $5 farmers’ tans and baseball caps these parts, what would they make 
you could pose for a photograph cruise by in I970B Chewies and cus- of us? What ware these white folk 
with a tribal member In full head- tomised Pontfocs, flicking cigarettes doing here with their zip-up'teiepeps 
dress ami face paint. The inrtians out of their car windows. This, is and - An d ea n pack a nim als? Had 
call this “chiefing”, their contempt redneck country now. BIBy Graham they driven, thousands of people 
fuelled by the traditional that lives just down the road and bum- from rids land to use it only .for 
a camera can steal your souL per stickers declare allegiance to this? . .. 

Along the road, poverty conld be fernffy values. - In the morning l woke early to 

seen through every broken shutter Up on the ridge, darkness had . find my test flooded. Thesfeepmg 
pane. Outside the tourist season, - fallen The Hamas hart settled down, bag wasdamp and rny shoes were 
ahnftrt half the 7.500 population is for the fright We built a campfire soaked tirnogh, Tlse rum gods had 
registered unemployed and the only and Mark and Laura cooked kebabs, spoken. ‘•V. 

serious money comes from two wild rice and squash stuffed with- ■ Mark Hodson travelled as a guest 
bingo halls on the r es e rvation. AH p e p p ers and mozzarella. We talked, of . American .. Airlin/ss . (Tel:, 
forms of gaming are outlawed in as Americans invariably do at meal 0345-789789) which flies daily direct 
North Carolina and most surround- times, of food: jamhalaya, grits and from Gatwick. to Raletok-Durham, 
mg states. When a $100,000 jackpot pig-in-a-blanket, the southerners’ North Carolina. Laura and Mark 
game is held on the reservation, poetic name for sausage rolls. Moser are at 450 CM Buckeye Cue 

coaches pour in from across the The conversation stopped dead Road, Swarmanoa, N C 28778 (Tet 
south-east as for away as Florida when a bam owl screeched from a 020 704 299 7155^.' 


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FINANCIAL TIMES WEEKEND NOVEMBER 26/NOVEMBER 27 1994 


the cuisine 
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A* well as |hc ranine, life 
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standard golf cuine. iciuiisaml 
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£47 JiO per person per night 
inclusive of VAT and 
use oftrnr health club 
r LEASE PHONE FOR BROCHURE 

Buxted, Vcbfield, Bast Sussex 


v 0825 732711 


.badruti* 

PALACE 

HOTEL Si; MORITZ 

for nearly 100 years the meeting place for connoisseurs 

Winter season 1994/95: 

December 17 to April 2 

Tel. ++41 82 2 11 01, Fax ++41 82 3 77 39 


rii 


rmrnjTi 

UN 


‘Hotel of 
the Year 1995’ 
- Egon Ronay 

NEW YEAR’S 

EVE 

Seven course dinner 
and entertainment 

The Hal kin Restaurant 
Halkin Street, Belgravia, 
London SW1X 7DJ 

Tfel: 0171-333 1234 
Fax: 0171-333 1100 



^Maxtor (&amxiv\s pjxhel 

Ashwater, Seaworthy, Devon EX21 SDF 
Tel: 01409 211224 Fax: 01409 211634 

A 17th century manor house, b eaut ifully restored, in 8 acres with superb views of rural Devon. Dinner 
party atmosphere, fine wine & food. Warm & Cosy with open log fires. Luxurious en suite bedrooms. 
Perfect for short breaks and weekends open all year. Write, fax or phone for our brochure and tariff. 

Escape to the heart of the West Country 12 




Suffolk Heritage Coast 





Highly Commended 


"Wood Had Mold & Couninj CiuB 


Come and enjoy the ambience that only a Listed Historic 16th Century Elizabethan Manor House can 
provide. Set in 10 idyllic acres in a designated area of outstanding natural beauty with roaring real log 
fires, candlelit dining, luxurious accommodation and much much more. The picturesque riverside lawn 
of Waodbridge provides the ideal base to explore the tranquil villages and hamlets of undiscovered 
Suffolk. 

-» *When the Countryside meets the sea" 

■ TWO NIGHT AGTUMWWINTER BREAKS FROM £45 PPPN, QB&B 
(Special eUce, stay 5 Bights wly pay fbr 4, Sna-Thurs) £195 pp. 


TEL 0394 4 1 1 283 


FAX 0394 410007 


WILLET HOTEL “ 

32 Sloane Gardens 
London SW1W 8DJ 
Telephone: 071-824 8415 
Fax: 071-730 4830 
Telex: 926678 

Small character town house, off Sloane Square. 
All modem facilities. 

Full English breakfast inclusive of very modest rates. 


'Marlborough Arms Hotel, 
'Woodstock', Oxon. 

Discover Christmas in Woodstock at a 14th Century 
Coaching Inn. The Marlborough Arms Hotel, 200 yds from 
Blenheim Palace, Birthplace of Sir Winston Church ilL 
fosn us for Xmas & New Year. Relax around our log fires & 
enjoy good home cooking £e friendly staff, plus a visit from 
fa filer Christmas. 

3 day Xmas programme from Xmas Eve candle 1U dinner 
until breakfast on Tuesday, 27th December from £250 pp. 
Non-residents are welcome to enjoy our festivities. 

Christmas Eve dinner, 5 courses £1 735 

Christmas Day lunch. 6 courses £3950 

Boxing Day lunch, 4 courses £1130 

See m 1995 with a 6 course dinner + live music £3950 
per head. 

Tel. 0993 811227 Fax 0993 811657 


18 ft 8a 


ELIZABETH 
HOTEL ^ 


& APARTMENTS 


LONDON 

SWI 


37 ECCLESTON SQUARE, 
VICTORIA, LONDON 
SW1V 1PB. 

Td: 071-828 6812 

_ Friendly, private hotel in 
ideal, central quiet location 
overlooking magnificent 
gardens of stately residential 
square, close to Belgravia. 
Comfortable Singles 

from £36.00. 

Doubles/Twins from £58.00 
and Family Rooms 
from £75.00 
including good 

ENGLISH BREAKFAST 
& VAT. 

Also luxury 2 bedroom & 
studio apartments 
(min. let 3 months) 

COLOUR BROCHURE 
AVAILABLE 


Egon Ronay /RAC Recommended 


ETB 

Ddme 




***★ AAftRAC 
2 Rosettes AA 


VERMONT 

HOTEL 


I Hotel is ceatralfy looted In j 12 

JSSSSSSS JSS'*" 

v “*SS2S?S™b»3i»*>* «» “»™i 

ol Mewing _ ^ farms] Btaie Room RestsHnL 

Oolite Car Parking. 

NE11RQ 




EFFECTIVE 


■A couple turned up at reception with a copy 
of the Weekend FT under their arm, and, 
having seen the advertisement on Saturday 
morning, stayed the weekend/ 

GMoraf Manager 
DIsgdOB Manor Ceaaby Hotel 

CCQFNTIAL far details of advertising In the next 
Essential Hotel Guide, please telephone 
Robert Hunt on: 071 873 4418. 


Essential 

Hotels 



IbeOUSwaniBfMJognbedM’one 
of the ftiest holds in the Cotswoids' 
vd hat been wtkMtagvisitoo for 
«»er £00 yean (todndlng Rkfwd ID 
according to 8 k Anted). 0*r 16 

rod Ihc restaurant rrawmed locally 
Cor fegjHSMMl savioe ind 
quality of food. 

Price £SU» per person per night 
todariw of Dbmec Bed mi MB 
BgiABmlfaL 

AUTUMN OFFER 
THREE FOR TWO 


wd m f o r qf Sneer aMiftitdjfiei 

TbeOMSmo 
MOatesrLBraS 
Nc.Borfori 
(MbnUrinOXBSSa 
Teicpluae0J93 7XM41 25 



WEEKEND FT XV 


* 


FT 


the 


Essential 
Hotel guide 

for Christmas 
and the 
New Year 


For details of advertising 
in the next 
Essential Hotel Guide 
On 31st December 1994 
Please telephone 
Robert Hunt : 

071 873 4418 




I froa the lOirt art in peaceful DotoysMn 
couoliysitie on the bonJeo of the Hoik 
National Park. Renowned tor lb 
4ullttlhJn|CWpD^fi|i4inft£l 
and pcoarul wrviee. 

M I (at 33) 20 mtatfra 

RaxmmtnkJ hy *& trmBmj GwUta. 
TeieptKMM MMlade (OUZf) 983795 


QaCUry-. 


Luxurious Town House Hotel 

Quietly situated in the heart of Kensington, 

36 individually and sumptuously finished 
Club Rooms with Butler Service. 

Your ideal residence In London. 

8-10 Queensberry Place, London SW7 2EA 
Tel: +44 (71) 915 0000 Rax: +44 (71) 915 4400 


SENIOR CITIZEN 

BREAKS 


AT AWARD WINNING HOTEL 
November & December 
Excluding Xmas/New Year. 
£29 Per Person Par Night. 
Includes FoD Engtbh Breakfast, 

1 Newspaper Per Couple, 

Hefnlns Coffee^ light Unub, 
Afternoon Tra,Tabta D'Hote 
Dinner Wtfa Uany Chokes And 
Warn Executive' En Suite Bedroom. 

Superb Value, Apply: 

7 TIVERTON HOTEL (FT) FREEPOST, 
TIVERTDN, DEVON EX16 6YZ 
Or Tel: 0884256120 
AA-RAC.ETB m. Commended. 
Ashley COurtBrey HotN of OWnodan 


The Ultimate Festive Break 
at L’Horizon -Jersey 


Enjoy a (radmoaal Christmas and New Year break at L’Horizon. 
Fwe Night Christmaa Break from £600 per pereon-Indoarre 
of all meals and entertainment. Three Night New Year Break 
from £325 per pereon-Indorive of Dinner, Bed and Breakfast 
and entmnnment. Cal! now for oar festive brochure. 


pThe Clifton Hotels 

KAl***fiACl 10 

IFOLKSTONPS PREMIER HOTa 

Begam Ragenqr-Siyla cEff tap IntsL 
BO bedrooms bhi^b, saJeata TV. 
watana bay. Utofftofia. Sdamm. 

CLIFTON WEEKEND BREAKS 
12 nM*>BS8£BSpp* ZotltoDBSBfin ip 
3ngte OBCB^uUicksfe a Sunday) 
EtapptndwflDflVAI 
CHRISTMAS FESTIVITIES 
4 day My hcknlw E3M per penon 
7 day My Madw £514 par peaon 
NEW YEARS EVE DWNBR 
DAHCEA CABARET. 

2nfgNs£13Spp 
3nigbtsE177pp 

Td:{0303) 
t 851231 



> REIMS & 

CHATEAUX. 

Relaii Gourmamb 

Interestingly Different 

ladependently owned. Individually run. 
Inspirationally k la carte. 

Internationally renowned, indelibly memorable. 
Immediately available. 

The 1995 Internationa! Guide- 
Over 400 hotels and restaurants worldwide. 

Details from: Rclais & Chfiteaux, 

7 Cork Street. London WIX SAB. 

Telephone 071 287 0987 Fax: 07! 437 0241 

Free for personal callers or £5 postage & packaging. 



Telephone? QS34 43101 



FaaamRe: 0534 46269 


13 


A mercifully unspoiled Georgian manor house set in 90 acres of 
. deer peck and renowned gardenSrOuly 8 miles from Bath. 
Award winning food and discreet impeccable service in 
a genuine country house setting. 

Hnnstnie, Chetwood, Bristol, B8I8 4N8 
Telephone 0761 490490 Facsimile 0761 490733 


THEBLAKENEY 

HOTEL 

AA/RAC 


ETB 

★+* 


Blakawy, Nr. Holt, Norfolk 
Traditional privately owned 
friendly hotel overlooking 
National Trust Harbour. 
Heated indoor pool, spa 
bath, sennas, mini gym, 
billiard room. Visit to relax, 
sail, walk, and explore 
the Norfolk villages, 
countryside and coast. 

SPECIAL FESTIVE 
ARRANGEMENTS FOR 
CHRISTMAS AND NEW YEAR 

Brochure: 0263740797 14 


LANGDALE 
rrs A CRACKER 

Qtrishtm at beautiful Longdate. Wtann. Friendly, relaxing and above all, fun. 
The finest food, company and service. Join In the festivities with our lively 
programme of events with race (right, live music and dancing, etc. 

Luxurious eftsuite bedrooms direct -dial telephone and satellite TV. Guest 
membership to our highly aedaimed Country Club with indoor pool. 
Health Sc Beauty Salon, saunas, steam room, exeidse room and squash 
courts, etc. Three nights, 24th-26th December; full board, from £169per 
person. For full programme and New Year rates. 

Phone 015394 37302 
The Lawgdalc Hotel & Country Club 




HOLLINGTON HOUSE 

Newbury's Award Winning Hotel 
81% Egon Ronay ~ 2 AA Rosettes 
“County Hotel of the Year” - Which? Hotel Guide 1995 

“A Peace and Quiet Break” 

Large spa baths, copious supplies of foam, king size double beds, 
cuddly duvets, breakfast in bed and a delicious candle- lit dinner 
in the evening for just £180.00 per person for any 2 nights. 
One hour west of London, take junction 13 off the M4. 


15 


For further information and reservations telephone 
Emma or Christy on 0635 255100 today. 


SELSDON PARK 


17 


Hotel 

Golf Course 
Leisure Club 

45 IONB ntoM 
Ckntoal London 
10 ions psom 
J6 0PM25 


SANDKHSTEAD, 
SOUTH CROYDON, 
SURREY 



CHRISTMAS BREAKS 
WEEKENDS IN 
THE COUNTRY 

"Rest & 
Revitalize" 
From £33 p.pjp.n. 
27-29 Dec. 1-2 Jan 

Til: 01816578811 
Fax: 01816616171 



SEASO X A L S A L E 


Unbeatable Bargains 
At This Superb Town House Hotel: 

Private Car Park 

Restaurant & Bar 

Superb Central Location 

LONDON ELIZABETH HOTEL 
TU: 071-402 6641 Fax:071-224 8900 

" Your pleasure is our business w 2T. 


Overlooking Hyde Park 
53 Personalised Rooms 
24 Hour Room Service 



THE ULTIMATE COUNTRY HOUSE 
CHRISTMAS- PARTI 

Enjoy i ndmaul Chnumas/Ne* Year Hours PntJ. with Sna, toetcy and 
t Gdh Dinner Dja«. SarmuJ driifhr amau m an old wrid amoiphcit of 
warmth aul hour*. Tiy our many rpocring boluia or Wnpty itlxx. 
FOR THE COMPUTE UNABlIDOflD CHBJSTHA3 JTOBT i 


COM BE GROVE MA NOR 

e^ l HOTEL & COUNTO QUB^ =i gg 

Muntom ComtK, Raih Tdeptow:: lOIZZStSWM Ptc 


ESSENTIAL HOTELS 
BROCHURE GUIDE 

ORDER FORM 

Please enter the appropriate number for the hotel brochures you would 
like to receive, eater your own name and address and then send or fax 
this coupon to the address shown. Replies must be received no later 
than 31 December 1994. 


‘ HIGHBULLEN 

1. 

H anbury Manor 

□ 

14. 

The Blakeney 

a 

2. 

Buxted Park Hotel 

□ 

15. 

Hollington House 

□ 

Country House Hotel, Chittlebamholt, North Devon 

3. 

Riber Hall 

□ 

16. 

Wood Hall Hotel 

□ 

* Secluded Yet Marvellous Views. 







* Highly Rated Restaurant. 

4. 

Gallery Hotel 

□ 

17. 

Selsdon Park 

a 

* 35 Double Rooms With Bath, Colour T.V. 

5. 

Badrutts Palace 

□ 

18. 

Willet Hotel 

□ 

In all the impartial Hotel Guides 
£47.50 - £70 per person, including dinner. 

6. 

The Halkin 

□ 

19. 

Elizabeth Hotel 

a 

breakfast, service, vat and 

7. 

Tiverton Hotel 

□ 

19a. Elizabeth Apartments 

a 

UNLIMITED FREE GOLF 

8. 

Reiais & Chateaux 

□ 

20. 

HighbuUen 

a 

OVER 10 MILES OF SALMON & SEA TROUT FISHING 





London Elizabeth 


Indoor & outdoor heated pools, outdoor & INDOOR tennis. 

9. 

L’Horizon 

a 

21. 

□ 

Squash, croquet, billiards, sauna, steam room, sunbed, spa bath, 
indoor putting, nine-hole par thirty -one golf course (resident 

10. 

Clifton Hotel 

a 

22. 

Combe Grove Manor 

□ 

professional). Executive conferences max 20. 

ChOdrea over 8. 

11. 

Langdale Hotel 

□ 

23. 

Marlborough Arms Hotel 

□ 

RIVERSIDE LODGE 4 ensuite bedrooms self catering 

12. 

Blagdon Manor 

□ 

24. 

Vermont Hotel 

□ 

(services available). 

85 acre ancient woodland. 

13. 

Hunstrete House 

o 

25. 

The Old Swan 

a 

Telephone 0769 540561 








TITLE 

ADDRESS 


INITIAL SURNAME.... 


IMMHMtlKMIlllll 


POSTCODE DAYTIME TELEPHONE. — 


WEEKEND FT ESSENTIAL HOTELS 
BROCHURE SERVICE 

(Ref 17/94) Capacity House, 

2-6 Rothsay Street, London SE1 4UD. 

Fax No: 071 357 6065 

The information you provide will be held by the Financial Times and may be used to keep 
you informed of FT products and by other selected companies for mailing list purposes- The 
FT is registered under the Data Protection Act 19S4. Financial Times, Number One 
Southwark Bridge, London SE1 9HL. Please tick this box if you do not wish to receive any 
further information from the FT Group or companies approved by the FT Group, □ 




i.eneanu'BXSSVfiiiiaBl m mm ■»*-* H-iMcnin«M 


XVI WEEKEND FT 


PROPERTY 


That horrible 
sinking feeling 


S ubsidence became a 
dirty word in 1989 
and 1990. Few home* 
owners bad minded 
the odd crack in the 
walls until those successive 
dry years introduced serious 
problems. 

The public took fright, espe- 
cially if they lived on the clay 
beds of London and south-east 
England. Nearby trees were 
the cause of much subsidence 
- sucking the moisture out of 
the clay. In 1991 subsidence 
claims against members of the 
Association of British Insurers 
(excluding Lloyd's) reached 
£54Qm. 

They declined in 1992 to 
£2S9m, and last year to £13 4m . 
They should fall again this 
year since rainfall is back to 
normal, the clay is swelling 
and wall cracks should be clos- 
ing. 

But homeowners’ attitudes 
have not regained the same 
equilibrium - and probably 
never will now that subsidence 
has become so scary. 

Buildings are not wholly 
solid, inflexible objects. Many 
have had cracks for centuries 
and survive happily. Timber 
buildings are always moving. 

Cracks are not the automatic 
danger they are in aircraft 
wings. But owners who suf- 
fered in the 1989-90 drought 
had a bad fright, like the 
James’s in Woodford Green, 
Essex, who had to appeal to 
the Insurance Ombudsman’s 
Bureau before their 1930s 
house was mended. In 1989 
they noticed an irregular tear 
in the wallpaper. A crack 
beneath one window in 1990 
became by 1991 “a complex of 
cracks throu g hout the house”, 
said Geoffrey James. The 
neighbours also had the prob- 
lem, so together they asked a 
local surveyor to investigate. 

That led to an insurance 
claim - Loss adjusters were 
appointed who in turn 
instructed structural engi- 
neers. Early in 1991 they dug 
inspection pits beside the foun- 
dations. Their report in April 
diagnosed subsidence and rec- 


Gerald raring an offers advice on subsidence 


ommended pollarding the adja- 
cent trees and underpinning. It 
would be more efficient, and 
chopp er for the Insurers, to do 
the work at both houses in tan- 
dem. Their neighbours’ adjust- 
ers accepted the report and 
invited tenders. 

But the James’s adjusters 
held back, wanting to test their 
theory that, if they felled the 
nearby trees and cleared the 
shrubs, the subsoil migbt 
recover over the next two 
years. They proposed waiting 
that long before authorising 
work - although the adjusters 
for next door had said 
“go-ahead”. This was intolera- 
ble. The James’s wrote to the 
ombudsman who advised writ- 

Trees are the 
biggest danger. 
The worst 
offenders are 
oak, poplar 
and lime 

ing to the chief executive of 
their insurer. Sun Alliance. 
Within a week he intervened 
and over-rode the adjusters. 

Work began in July 1992 and 
continued until December. The 
underpinning was a massive 
specialist operation, costing 
£14^500. Repairs and redecora- 
tion by a general builder came 
to £1L800. The structural engi- 
neers charged £3,000, a botani- 
cal identification service which 
examined the tree roots £120 
and the James's surveyor 
£1,600. Except for a £500 excess 
in the policy that James paid. 
Sun Alliance paid everything 
and the house stands firm. The 
sole hitch is that, wanting to 
change his house contents 
insurance policy, Geoffrey 
James has approached four 
insurers who have all turned 
him down, he thinks because 
of a question about subsidence 
- which he finds hard to con- 
nect with contents. 

Subsidence does not occur on 


COUNTRY PROPERTY 



Moll neks 
Wells & Associates 
COUNTRY HOMES 
MAGAZINE 
For an unrivalled selection of 
individual properties in East 
Hertfordshire and Wfest Essex, 
telephone for a copy of our 
latest magazine. 
Bishops Stokhpord 
Tel: (0279) 755400 
Fa*: (0279) 757377 


RET, 


ENGLISH COURTYARD 

"WHERE LONDON MEETS THE 
GENTLE COUNTRYSIDE' 
Ctarcti Race, iffcwit m w Middx. 

Hie bone turn at 0 k bean of the vShp. 

A spectacular new development of roorey 

cottages sod flas. 

2 and 3 bedrooms. ConsemCory. 
£210,000 to £23SjOOO - iadmfinggiage. 
U*W over 12$ yean. 

FnB Savkc duege details avxdabta 
FOR THIS AND ALL THAT IS BEST 

IN RETIREMENT HOUSING 

ACROSS RURAL ENGLAND 

fagWi Courtyard AfsadatkMi 
8 HoBand Suet, London W8 4LT 


MILLERSON 

Cornwall 

Convantent to major torero, an kitrtgiing 
chapel conversion. AvnttgataM Hvlng 
room owrioofcs banqueting style dWhg 
Hal. large Mfc hort lwaWM airea. uMtty 
room. Study. Krary. tour double 
bedrooms, one erHHdta bathroom, 2nd 
bathroom, double garage and garden. 
O.LRO. £165,000. - Ref: 10&R3 
MUeraon Uskeard 
344401 


SANDHURST 

Surrey 

Large detached 4 bedroom, F/H. 

Parking for 9 cars. 

B1 planning offering residential 
with business aae, ie dentist, doctors, 
c hiro practors, alternative m&fidaes 
etc. Presently a design office. 
For a QUICK SALE 
£105k 


0252872723 


oaa. 


COUNTRY 
ALS 


ACORN PROPERTY 
MANAGEMENT SERVICES 
BL 1979. Memfacnef ASIA. 
BAGSHOT A «npqfa 6 bodwwn 4 we q ri M 
room comely banc a lovely E*rdoa. 
Scored kfchtt wWdi <wM cflfer a nrif- 

eoaarecd fiat. 

FIfXT A good dad Cnnfiy bone with 4 
bedroom* mM4e fnSy htmfcbcd. Mnfcr 
bedroom cn-ndk bathroom wt* stenset 

fLTWFo. 

DriaRs Hartley Wktaey «S2 WWW 

ftx 6252 945346 


nriTini] 


Detached 5 bedroo m, 4 bathroom fmagy 
homo or set in approx I esc, 

bnxH 1919 for well known local family. 
Tends coat, edro garrifiw, extremely 
private and eecore. Plaas fbr laige toasge 
exMHiM nd indoor POOL Molly atnated 
for LiveipooL Chester. Manchester, North, 
%les. Asking f375k in any European 
cuDtocy. Mortgage cao be ananged. 

Coufidendaflly -r— 

Witte tee Box B2466, Financial 1W 
One Sonfomit: Bridge, LoadoaSEl 9HL 


sandstone or limestone, unless 
there is clay nearby. Clay 
changes volume according to 
how much moisture it has. 
shrinking as It dries out and 
Expanding if it gains water. As 
the clay contracts, building 
foundations may settle (subsi- 
dence). If ft expands. It may 
push them up (heave). 

Insurance companies dignify 
the perils of Subsidence and 
Heave with capital letters, but 
heave is not such a danger. In 
the 14 years or his professional 
career Tony DeFries. of Savflls 
Building Consultancy has 
“never seen a building suffer” 
from it 

One house can suffer subsi- 
dence while its neighbour does 
not - which makes the insur- 
ers' use of postcodes, combined 
with geological maps to assess 
risk mid premiums, an inaccu- 
rate tool. The clay may be 
thicker or more viscous at a 
particular point, or the con- 
struction different. Cracked 
drains or water mains may be 
eroding the soil. Older houses 
with lime mortar ride move- 
ment better than new ones 
with w»wwnt mortar. 

However, trees are the big- 
gest danger and the worst 
offenders are deciduous variet- 
ies such as oak, poplar and 
lime . And the shallow roots of 
the London plane look for 
water near the surface. lake 
lime, it is often planted close to 
a building and causes damag e. 

The Building Research 
Establishment advises that 
trees should be the distance of 
their mature hei ght from the 
building, although less thirsty 
trees may be half their mature 
height If you think a tree is 
making your house crack, seek 
advice from a surveyor and 
from an arboriculturist It may 
be wiser to prune the tree, to 
reduce its leafag e, rather than 
cut it down. (If you are in a 
conservation area you may 
need permission from the local 
planning authority.) You can 
also trim the roots. 

If your house develops 
cracks, assess how bad they 
are and' identify possible 






causes. Inform the insurers 
even if you are not making a 
claim. They may instruct loss 
adjusters, surveyors or engi- 
neers to inspect the house, soil 
and trees, and will ask how 
long the cracks have been 
there - in case you committed 
the sin of non-disclosure when 
you took out your policy. 

Experts will have to diag- 
nose if it really is subsidence, 
or the cracks come, say, from 
differential rates of expansion 
and contraction of materials in 
t he building. That may easily 
take a year, to see if the cracks 
close in wet weather. 

The BRE’s table of damage 
runs from nought (hairline 
cracking) to five (structural 
damage, cracks over 25mm 
wide requiring major repairs, 
teams losing their bearing and 
the w alls l eaning badly and 
needing shoring). Causes other 
than foundation movement ran 
produce cracks less than 3mm 
wide - the thickness of a £1 


coin. If the crack is wider, 
foundation movement may 
well be the cause. 

Category one cracks can be 
fixed using a simple filler. Cat- 
egory two cracks, up to fimm, 
may need some internal wall 
lining and repointing outside 
to keep out the wet Doors and 
windows may stick slightly 
and need easing. In category 
three, era (is are fanm to isnwn 
wide, doors and windows stick 
and service pipes may fracture. 
In category four they are 
i s wim -M m m , and walls may 
need considerable breaking-out 
and replacing. 

Many old houses display 
some of this damage and are 
still sound. The regulations for 
new houses (with foundations 
on clay usually 05m deep, and 
up to 3.5m if there are trees 
around) are so strict that subsi- 
dence is uncommon 

Those that have suffered 
have been mostly Victorian 
and from the first half of this 


LONDON PROPERTY 


The Instructions of the joint LPA Receivers 


A substantial semi detached stucco fronted period property 
(circa 3978 sq ft) approached through a walled garden 
on the North East side of Regents Park 
4 Reception Rooms, 5 Bedrooms. 4 Bathrooms (3 cn suite). 
Kitchcn/Brcakfast Room. Guest WC. 2nd Kitchen, 

Utility Room. Second WC. Front Walled Garden 
with Off Street Parking. Rear Patio. 

Leasehold: Offers m the region of 

89 year, approx Subject to Contract £995,000 

Sole Agents 


100 Knigh abridge 
London SW1X7LB 
0171 584 6106 


PROPERTIES IN KENSINGTON & CHELSEA 

BAKKSTON GARDENS, SWS £285*06 

Elegant 2nd floor an with lift and aae ofco wnnimal gardens. 3 be dnmua . 2 bathrooms 
and high cefling, double Mtercomeeting reception. LEASEHOLD 
ROLANDWAY, SW7 £425^00 

A rare op p o r t un ity to purchase 3 bed mews boose in private road with 1)2 receptions, and 
possible garage. FREEHOLD 

071 244 9911 

AABON AND LEWIS PBOPSOY sntvtats, 
M40LDBB0MPIDN&0AD. LONDON SW74HR VAX: 071 2444834 



SOMERSET SQUARE, 
LONDON W14 

A nodal Oeogaa ayfc town boon qWcdy 
located in fta private m ad ca UiJ Kpaan. 

5 Priodpjl BodfooBS. 2 Bftdntxnm, Shorn 
Boom, Recxpreoe Ron. Dining Room. 
Plnaffly Bow. 2 Add hi cral Rooms 
(S odj/Bedmoml Ktabcn, 

Good Sac m«ed Oanka, Boot "Itarraco, 
Gaage pin* (octree fcr trei addMoori css. 
LEASE 75 YEAXS 
cifTt.lfTt 

MAYFAIR OFFICE 
Tet 071 OTO 0G76 fto: 071 4912920 


CHELSEA HOMESEARCH » CO We 
represent the twjrer to earn tbne end 
money: 071 937 22B1. Fax 071 937 2282. 


A ONE STOP WVESTOJTS SStVTCE - JB rt 
find test London buys. Snores. MititNig. 
Mkn &men. tel «46 30*8 Free 3868 


LONDON RENTALS 


SEI LUX CRY 
XtAISOSETTES 


4 new purpose-built 
2 bed maisonettes all with 
conservatory, private roof garden 
& garaged parking - lOmins walk 
London Bridge Many extras 
£112^00 
For Details 
Tel 071 -820 0019 


ANDRE LANAUVRE & Co 


ONSLOW GARDENS, 
SW7 

Stunning ground floor 
maisonette with 3 bedroms 
and private walled garden. 
Share of Freehold - £695,000 


TI£ L : 0"1 259 5233 
FAX: 07 1 235 23 42 






353S 






1 MICHAEL 


mmm 



5TT77T 


07 L •'■'.1;/ 2253 


IT R \I)A \S.SO( I AT i:s 
LIMITED 


FttsnaPKONAuiaBiPRBRriAttt 
CHELSA HARBOUR Sopot, fej Ft 3 



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ARE YOU A WEARY LONG. 
DOTANCE TRAVELLER? It&G) OF 
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TEL: 01285 640840 


DEVELOPMENT 

INVESTMENT 


WATERSIDE MVESTUENT RP. 27 Ftea. 
Berry Heed, Hxtey.BdakigHoL Rea Nee 
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INTERNATIONAL 

RENTALS 


ALDeftKEY.CHANNB. ISLES Wxhwsn, 
rhanring any cottage to W. Lcng m*A 
FuRy MrWi, W onenBes. Seeps «. h NL 
oh. Mephato. » Hiope. Raary, Oanh. 
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GOLF 

GOLF WORLD PROPERTY MEWS The 
onlr mete** ** 1 8 » 

sdb onntarmtoW Q* M Etete and 

Ood GU) bketoereNpe. OortectSanh 

FtoeSI 8321 84SI. 


he " chancellor is 

unHkriy to hrm? W '^'*5 ^S22S3i?SSi 
Christmas cheer "to . 


century, plus some built after 
the second world war. And 
cracks can close, as DeFries 
has Turteri in a house in Hamp- 
stead, north London, where he 
has monitored cracks for two 
years for the occupier. It has 
now virtually recovered, and 
there is no need to underpin 
which is “a horrendous major 
structural exercise". 

Geoffrey James recommends 
retaining a s ur veyor of one's 
own as “he knows the ropes 
and ran advise on all the ensu- 
ing hnfldfwg - procedures”. 

He says: “If a neighbour has 
the same problem, work 
together - not least for support 
on the bleak days when the 
family home looks set to lose 
its value." 

■ A useful book. Has Tour 
House Got Cracks?, £9.95, by 
T.J. Freeman. G.S. Littlejohn 
and R.M.C. Driscoll is pub- 
lished by the Institution of C6 hZ 
Engineers and the Blinding 
Research Establishment 


lK-benliam 

Thorpe 


Unftmusbed Properties to 
Let in Mayfair 

Hajt Vpn - In Boar mews ftrL Newly 
ir fud iWxtl 2 Hccrpt. Z Bate. 
KSkMBteHtote Ite. Brehnn. BtJSpm. 
Per* Sfrwr - Sforxxa MafaoocOc in 
pccsti^MB budding- Hafl, Ooaki. DocbiD- 
teftp.ia tow l ted tellm,!B»kre.«to 
G^Soie Buhnw. 1ME9. £M3 p«L 


Mnoncnc. Dfak Baoep, Qdn. 3 Bafcm. 2 
Ei^Srflri. £575 p». 

Rcsldaraal Letttegl am 408 274S 




PROPERTY 


YOUR TAX 
HAVEN HOME 


FOR SALE 

TOWN HOUSES 
CASTLETOWN - ISLE OF MAN 
+ 3 Bedrooms, 2 bathrooms 

♦ Overlooking tbe harbour 

♦ 10 minutes to tbe airport 

Prices from £80,000 
Castieridge Ltd 
Tel: 0624 825266 
Fax: 0624 825265 


NO STONE LEFT UNTURNED to And 
roeMxxtom prims. Uqnttart re nte te n t 
vtoa iw MONACO dreet baadVtest 
aocoasL Must sol FR25 rntoon. TOUTTOUR 
Oted 700 m OIL E bretoo m ksuy vNs. 
Sam. Hugs pool end tamom gr n mxSd ng 
speOanPsr 80km panorama. One ot a Kind. 
FR 6 mtoon. SOSFB. [06] «M«nA 


on Tuesday. But he prohab& 

will not do anyfhipg .to make. 
matters worse. 

For, the second year naming 

■ Hire girfnrnw tpwHiig nascnhaS 

dribbled away. Net sales in 
October, as measnred by tie 
Ctwpotate Estate Agmts Prop- 
erty Index (based on more, 
than 4,000 offices), are 7.4 per 
cent down front .September 
and 5.8 per cent down from. 
October: 19S3. 

Two leading indices diverge 
an prices: the Nationwide cal- 
culates a rise of ,&7 per cent - 
ova* the year to October, the 
Halifax a fall of (L9 per cent. 

Not an the market Is in the 
doldrums. Wtokworth, which 
has 31 offices across London,, 
has had higher saks month by 
rntmtir from Jtumary to Octo- 
ber than tat 1933.' At the top 
end of the market, Jackson- 
Stops has sold Thornhan^L. 
Hall estate hi Cambridgeshire 
for above its* guide price of 
£1.6m and, in Cornwall, 
Knight Frank ft Butley sold 
Bar on the Hriford Passage for 
“significantly" above its gtdde 

Of tlm, 

Ftanas have also done well, 
with the average value at land 
free of buildings- rising 11.7 
per cent in the first half of 
1994 aad 2Ll per cent in the 
year to June 1994, according 
to Savifls. 

. V a farm does not have an 
attractive house, says Bichard 
Gayner of Carter Jonas, neigh- ; 
homing farmers looking for. 
economies of scale wflT be the 
buyers. Hut is not true for 
Blney’s Farm in the Ghflterns 
near Mariow, however, which 
has a brick and timber 16th . 
century farmhouse. It once: 
belonged to Blney Havrolean 
af the Greek ship-owning fom- . 
9y. It goes to auction in 
Henley-on-Thames with a 
guide price for six lots of more 
than £1.125m. Inquiries to - 
Cole Flatt (0442-870444) or 
Lane Fox (071-499 4786)- 

In the middle range of 
houses. Carter Jonas had a 


bought it wfll hav» to ^end a 


UIWWtWHX -- - . 

For regular jales/wwCTjr, 

the price.must be competitive. 
Pollen’s End, a gUmWe 
yictqrian house In Oxford; 
was on the market for . a 
at £lm. Then realism pre- 
vailed. It Is now an effer from 
John D Wood (086S3U522) at 

£70OJ»O. V' 

. ', ;Q-O^D{ 

gven .romantics; who want to 
live in castles ora insbtting'- otr 
realiriic prices. An illustration 
of how the market, has 
changed is Bnmcroft Casfle in 
the Corve valley, which 
Andrew Grant tax Worcerter - 
sold recently. 'Oie.addnglrt* . 
was £975,000. Four years ago > 
it sold for £1.75pi» - 

m Blackheath, sout h-east 
j ^yiHrai, a wing of - 

Castle designed for his. own 
ose by Sir John Vanbrugh, 
who was also the architect- fofr_ 
Blenheim Palace and Castle 
Howard, is on offer from 
Winkworth (081-852 0999) for 
£395,000. listed grade I, it has 
a bdg 3M x Ifft drawing room . 
with views across Greenwich 
Park to St Paul's Cathedral 
(on a dear day) and shares a 
two-acre garden with the Other 
parts of the castla 
. Most romantic of all is a cas- 
tefiated dairy at Fort Putnam 
near Panith in Cumbria. The 
-fint* is one iff three late 18th 
r w i fu r y -folly farms” that the 
Owm Duke of Norfolk built on 
Ms estate at Greystake Castle. 
A splendidly perverse Whig, 
1m put them up to celebrate 
American victories in the War 
of Independence. One . of the 
ofler MHes is called Banker 
Hil l. Fart Putnam is listed 
grade n and is being con- 
verted to a~twobedrooni cot- 
tage. It. is at £75,000 from 
Lowther Scott-Harden 
(0768-64541). . ^ 

Gerald Cadogan 


INTERNATIONAL PROPERTY 


SWITZERLAND VnhaOie*Uxt»-'rboAstCTg«lc-Drwiifoe<fcl , Bys6o 

IteDomafciBdBrSyaBeliteunapoatSacrenMreM p a fcte iriw toto te teteonteireaWy 
■crnwMii ptatoau Jwt autekto tw onto of Wen, fciwtetta riy adjokmg Ore femora 
Domains te to Hoaldenc*. 

litaravNMtaitectesritmtetafoltedOavafocvaNtaiindrilpiite 
7te<tererareNracluM»atr»fcBrailthapaaciaandteHu8rof«rareirin3nnMrtli tu fe% t rt y ra 
At 0w NgheM poH oflha Dontena da rByaia rea are altoilng 14 aqrariuuy apartmante 
bi tw ’Astagatf , reWch am U to tw hjrfwat Mantea to of Mm oraBy. Item 
ii(j arti n an! i oBaicimre.dte cre ton. panoramic «oulh»n*lBiia and t rtwra aNo pricoa. 
\fltea aOraa toariy, aaarty ran a twtfty quN^rot fla at T200rs reth avwy tacBtrlrom 
afc&ig to got, aterentog tsnrte. hmay hotes. raatennte, owSng atom and attreoha 
teu tt p wa tt b an M a wat k w Hy renownad yet nonravafead raaort partaci for Nl tow 
saaaona ra*l aaalr aocamHato tw dat^ti cl Montautan Late Ganm, Just 20 mlmtea 
mag tiy mad, or a Rtta tongar bjr tafo. 

The Daswkia da rSyate iww a n h a mtt i fl of ofoua twauty and tanquRy *dti 
iwparttaa cflared a! « mow oompaMw price. 

Dapoaita from £24,000 Prtoa iro« E104DOO a. 224004. 

Up to 7WS ftwndag awaSaMa at Swlaa Franc mortgaga mtos of approoc 8%. 
Then towMd pmpartm rapreaanMte wry test example at apartments, efwteta oad 
tawas which rea bold, manga and promote in C w to a rtraa l and America. Larewnto 
ProparBoa btenraOwad la a British owned M» company vriBi owar 20 yaam m parianca, 
tJartnp MLadrloa on irea a t m att a both Swlaa and wortdwtoA.Oontoaiy damicStean raid 
wore pecrate for dame aaaMna pemwnert SMaa or US raaUeol status. 

LENNARDS PROPERTIES INTERNATIONAL 

081 906 0515 or 081 958 6976/5194 a— I d*. . mreappa^ 


Unique French wine chdteau for sale. 

A veur rara opportunity to acqiarv an impressive 171h cantwy castle In foe 
heart of Plwntares Ofltras da Bteyo. Bordeaux. Marty boaulifol Interior and 
axtwlor donate and decorarionsL The size and splendour of the cstfle aftara 
acope for cttweraton to a variety of trees Indutflng Sate, oonfcnam centre 
or corporate training centre. 

The estate covers a total arse of 70 hectares, whereof SO are prhne 
vineyards wed tar produdlan of high grade quaBty wine. FuB range of state- 
oMtre-art aqippmentflacMtaB. 

For further details: 

Hoflug&Audon 
IS Kga. Nytorv 
DK- 1050 Copenhagen K 
Denmark 


FRANCE - rnOVENCE/UJBERON 
DIRECT FROM OWNER 
fttHri o g IS bok golf course with 
reatwaa n t and chto bonac aanounded by 
oatotal park SO mo from Inti airport 
10 bui boo highway vytfug alkywa 
20,000 sqjn. floor space mrfniiing 
betel and rrtidenoea 
WceOJM 
TEL. (33) 93 30 S2 28 
RAX (33) 93 15 92 09 


PRINCIPALITY OF MONACO 
DIRECT FROM OWNER 

LtoBuy aptftmeata for sak 
From £350000 to fLSSLOOO wfll also 

cootklcr SWAPS with dkoom 

prodwang properties in 
Ccnnal Loodoo or other capitals 
TEL. (33) 93 30 5228 
FAX (33) 93 IS 92 09 


AFRICAN WILDERNESS 

Qepfautt drinUag from you swmmring 
poolT Lore a** « yow fawn? Bra a 
dare of ibb Private Reserve in Boorem 
part of a 400,000 acre Cteaerraacy. 
A«W*k * IVMeaaioiBlly ran for owner, 
&. gncaa. Price 165 000 Pounds Staling. 

Caatad Aadrfi Laadbwd 

TW +27 11 326 1010 
Fax +27 1 1787 0627 

GUERNSEY- SWMK 1 COMPANY Liu 4 
Sout) Etofarad^ St Pater Port. Qno tf 

tttfloN hdapamtare Esaw Agate 

Ut 0«1 7M4C5. Fscc 0481713811. 
COSTA DEL SOL PROPERTIES n— — - 
ONoaa. Far bfomretion S Pita ht re« 
0819033781 anytime. Fra 3559 


MONTE-CARLO 

Residential area 
Spacious 5 room 
apartment in perfect 
condition, 200 sq. m. 
sea view, cave 
& parking space 
(R148) 

FF 6^00.000.- 

AAGEDI 

7/9 Bd das MaoHns MC 9B000 Macaco 
Tel 33-92 165 959 Far 33-93 301 M2 


DIANI BEACH, KENYA 
We a/e looking far ncighbonra 
at Kenya’s mast beautiful beadL 
Luxury freehold villas with 
pool and Sat-TV for sale! 

Cwtwfc Kris TU:(nK) tel 741 8Z10 
or 83&S 223 963 ftag 0$I 7419232 


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407 8008 


V::U 






























WEEKEND FT XVII 


FINANCIAL TIMES WEEKEND NOVEMBER 26/NOVEMBER 27 1994 ★ 

■1^ 

GARDENING / MOTORING 


Gardening 

Blankets for the 
beds in winter 

Robin Lane Fax on how to deal with semi-hardy plants 


T his month has 
proved remarkably 
mild in the south of 
E n gla nd and a hard 
winter still seems a 
distant possibility. Tbe ceano 
thnsis are bade in bud; ever- 
green choisysas are having a 
second flowering; and. out of 
doors, the fuchsias have still 
stopped. It is strange to be 
picking small bunches of roses 
when the larch trees have 
finally turned into the country- 
side's last burst of yellow. 

Bat take no chances and 
believe no signs of kindness: 
mother nature can be cruel 
and I do not trust her to 
behave herself from this week- 
end onwards. 

Any misbehaviour is hurtful 
to gardeners because we are all 
growing more semi-hardy 
plants than we used to 20 years 
ago. They multiply easily for 
the many small nurseries 
which have arisen since 1385. 
They look clean and fresh In 
late spring - exactly what 
supermarket shoppers now 
expect from plants. And they 
transform gardening in pots 
and small urban spaces. 

Since 1981-1382, we have not 
had the sort of winter which 
makes us all swear, briefly, 
never again. In normal winters 
salvation can come In different 
forms. Here are the options 
(doing nothing is not one of 
them — and doing everything is 
pointless). 

Perhaps the geraniums are 
still flowering, but you are 
very lucky because they ought 
to have died weeks ago. Most 
of next season's half-hardy 
plants for pots will be much 
better if they are grown afresh 
as newly-rooted cuttings in 
1995. All of my personal 
favourites are better thrown 
away, except for one or two 
parent plants from which cut- 
ting should be taken early next 
year of young growth which is 
being brought on undo' slight 
heat 

Plants such as verbena. 


heliotrope, pelargoniums and 
penstemons will flower less 
freely from their second year 
onwards. All you need to keep 
is a parent, or perhaps two, to 
cover yourself against disaster. 
The others might as well be 
thrown away. 

The only exceptions are 
plants grown for their leaves. 
Here, the lovely forms of 
scented geraniums are admira- 
ble companions during winter 
inside the house. Trim them 
slightly at the tips of their 
stems to stpp them becoming 
straggly, but save as many as 
you like because they improve 
with age. So does the widely- 
grown Hehchrysum petiedatum 

I The wrapped 
plants lived 
but their 
unsheltered 
neighbours 
were dead 

with its felted grey leaves. It is 
worth training one or two 
plants in a large pot where 
they can be clipped and trained 
Into mounds of grey leaves on 
a framework of arched wire 
from one season to the next 
Otherwise, the plants which 
you lift can be clipped hard - 
very hard if they are tender 
geraniums which will other- 
wise become too leggy. 

For safe storage, they do not 
only need a place where the 
temperature will not foil below 
freezing: They also need light 

and air . In this mild s pall , the 
dangers have been mould and 
mildew, especially on anything 
which was lifted with Dowers 
and leaves waiting to turn 
brown. 


especially if you overwater. 
Remember to open the door on 
mild days and try not to water 
too often when your plants are 
only ticking over. Once every 
10 days is usually quite 

Perhaps this lifting sounds 
too energetic and you are short 
of storage. On the margins of 
hardiness, you have another 
option - leave the plants out- 
side and wrap than in a suit- 
able blanket 

A mound of bracken used to 
be the best answer but the 
business has changed - even 
though though most of the gar- 
dening books do not acknowl- 
edge it Instead of bracken and 
rotted leaves, we can all use 
artificial blankets. The best of 
them allow water to seep 
through, avoiding the dryness 
which bracken usually causes. 
They take the edge off cold 
wind and mitigate the sharp- 
ness of an average frost After 
three year's experimenting, I 
now swear by them and reckon 
that we all have more to learn 
about their possibilities. 

To the trade, they are known 
as crop covers and are most 
familiar when protecting early 
vegetables and seedlings. Gar- 
den centres now sell the ligh- 
ter grades of blanket in small 
pieces for gardeners with a 
plant or two to be protected. 

These fibres and fleeces are 
helpful, but they are not as 
heavy as I would like for seri- 
ous defence of big shrubs and 
soft summer-flowering plants. 
This year I am following op my 
researches at the summer 
flower shows and opting for 
the Envirofleece made by Agra- 
lan. Their blankets are heavy- 
weights on wide rolls and trade 
discounts should apply to 
those of you who need 100m 
lengths at a time. 

Two new weights in this 
brand are the Agralan Enviro- 
fieece 30 which Is a medium 


Many of my soft plants begin 
the winter in a frost-proof 
shed, which is only frost-proof 
if the door is kept firmly shut 
Closure encourages mildew. 


grade for small shrubs, 
half-hardy border plants and 
thing s such as salvias througb- 


Motoring/ Stuart Marshall 

Range Rover is no 
stick- in- the - mud 


This mobile drawing room can be taken for a rough ride 


T he woodland ride 
was like a switch- 
back - gluimously 
muddy on the 
peaks, deeply water- 
logged in the troughs. Bushes 
scraped the sides of my Range 
Rover 4.6 HSE automatic as it 
dealt effortlessly with terrain 
on which few people would 
risk a valuable horse. 

So what was I up fo, treating 
£44,362 worth of air condi- 
tioned, wood and leather 
trimmed mobile drawing room 
as cruelly as a former might a 
battered old Land Rover? 

It was aE the manufacturer's 
doing. “Come to Eastnor Cas- 
tle." an executive had said. "I 
know you liked driving our 
new Range Rovers cm the road; 
now spend a day trying them 
over the rough stuff." (He 
could have added: “Where only 
one buyer in 100 ever drives 
them.") 

Eastnor Castle estate pro- 
vides the best (by which I 
mean the worst) terrain in 
Britain on which to play with a 
4x4. Barring snowy wastes, 
rocky screes or desert rands, 
von can find any kind of sur- 
face that an on-off road 
four-wheel drive could be 
expected to cope with or dnnb 
up. With one exception; the 
proverbial high kerb outeide 

Harrods, which is the toughest 
obstacle most Range Rover 
owners reckon to sunnmmt 
No doubt the resourceful 
Major Ben Hervey-Bathurst, 


who for years has allowed 
Land Rover use of the Eastnor 
Castle estate to test its prod- 
ucts to destruction, could pro- 
vide one if asked. This arche- 
typal English country 
gentleman has managed, with 
tbe aid of bulldozers and, it is 
rumoured, occasional explo- 
sions by army personnel in 
training, to provide absolutely 
everything else. 

Coincidentally, I had a 
Range Rover LSD - the model 
with a BMW 2.5-litre turbo- 
diesel engine and manual gear- 
box - on test. On the 400-mile 
return trip from my home to 
Eastnor it motorway-cruised in 
near silence at business motor- 
ist's speeds, rode and bandied 
almost like a luxury car on A 
and B roads and returned a 
more than satisfactory 24.7mpg 
(11.44 1/ 100km). This bluff 
fronted, two-tonne, on-off road 
vehicle is no heavy drinker. 

But back to serious off-road- 
jng There used to be a golden 
rule for driving off-road. Never 
touch the brakes. On steep, 
slippery httib, rely entirely on 
the drag of the engine in low 
range first gear to control the 
rate of descent. 

This meant automatics were 
inclined to run away. But the 
Range Rover has ABS brakes. I 
was allowed a dab on the pedal 
to keep the 4.6 HSE nicely 
under control an muddy slopes 
as steep as the roof of a house. 
Nothing fazed this most luxuri- 
ous of all Range Rovers. 


7a CHRISTMAS 
H MESSAGE 

Jffia/pjpoar- heart# he-jthuh 
gfy. the- 

A Oar-araoe^-ihljueste. 

? SISTER SUPERKK 

^ ct JOSEPH'S HOSPICE 

jf 


An air suspension that can 
be set to five different heights 
is also standard equipment. 
The lowest setting is to make it 
easier for women in tight 
skirts to enter and leave with 
dignity. And the highest gives 
enough extra clearance to let it 
be driven over bumps on 
which lesser machines might 
perch helplessly, all four 
wheels off the ground. 

On the road, the Range 
Rover's heavy beam axles pre- 
vent ride comfort - good 
though it is - from being equal 
to that of independently 
suspended luxury saloons such 
as BMW’s 7-Series, the Mer- 
cedes S-Class an d Jaguar's XJs. 

But off road, the Range 
Rover has no rival. Extreme 
axle articulation keeps all the 
wheels on the ground while 
the soft air suspension takes 
the sting out of what would 
otherwise be horrifying bumps. 

A slightly less expensive 
(£36,512) 4.0-litre V8 petrol 
engined Range Rover with 
automatic transmission went 
just as well as the flagship 4.6 
HSE but my favourite, on as 
well as off road, was the 2.5-li- 
tre turbo-diesel. It costs the 
same as the 4.0-litre V8. On 
road, I prefer automatics (a 
two pedal diesel is coming next 
year) but 1 still think there is 

nothing 1 lik e mannal transmis- 
sion for serious off-reading. 

On hills on which ABS 
brakes were needed to curb the 
automatic V8's urge to run 
away, the turbo-diesel wound 
itself down slowly with the 
sure-footedness of a mountain 
goat With bucketfuls of torque 
(pulling power) at low revolu- 
tions, it climbed steep slopes in 
third gear without excessive 
wheel spin. 

Most of the people who drive 
Range Rovers - or for that 
matter Shoguns, Land Cruis- 
ers, Troopers and the rest - 


MOTORS 


HASSOP LEXUS offers the LS400 Fr 
anno pm and GS300 Ft 088.00 pm. 
Demonstrators n! your tome at office 
Tot 081 489 0006 lor Main 

JEMCA London^ Largesl Detdar tor LEXU3 
TGt 081 203 1888 



out the winter, and the Enviro- 
fleece 60, a heavier grade for 
large shrubs and climbers. 

Both these fleeces are made 
from polypropylene and are 
easily pinned round and in 
front of the plants whose har- 
diness causes you most worry. 

But why bother, when a 
really heavy frost will have its 
way regardless? From my 
experiments in recent winters. 
I have found that it is worth 
the modest expense and effort. 
In generally mild winters there 
have been a few short sharp 
shocks sufficient to knock out 
unprotected marginals such as 
Hebe hulkeana, tbe taller dai- 
sy-flowered os teo sperm ums 
and the tender forms of salvia 
and rfiagris- 


Those which I wrapped in 
lightweight fibre-blankets had 
survived when 1 unwrapped 
them in ApriL Their unshel- 
tered neighbours were stone 
dead, as usual. No doubt a 
really ferocious winter win go 
through your Envirofleece and 
be as lethal as ever, but these 
gentler seasons have certainly 
been abated by these new pro- 
tections. 

The trouble is that most of 
them come in an intrusive 
shade of fleecy white which 
then turns dirty grey like a 
sheep in a wet November. 
Agralan have introduced a pale 
green medium fleece which 
takes the edge off the eyesore 
and is adequate for smaller 
shrubs. 


By lifting a few parents and 
blanketing the best of the rest, 
it should be possible to avoid 
the ragiiaiHoc which disfigured 
gardens in the 1970s and 1980s. 

Every pest is quick to outwit 
the latest predator and no 
doubt, mother nature will hit 
us with a really hard erne just 
when I think that I have blan- 
keted her out 

Until she does, fleece the 
plants at risk during the next 
few weekends; peg the blan- 
kets down or weight tt«™ into 
place with stones before the 
winter fleeces the plants from 
you instead. 

■ Agralan, the Old Brickyard, 
Ashton Keynes, Swindon, Wilt- 
shire SN6 6QR (Tel: 
0285-830015), 



have not the slightest idea of 
the off-road capability that has 
been built into them. Many are 
not interested. But any who 
are should take advantage of 
the off-road driving courses 
offered by the manufacturers 
and independent specialists. 

Beware of the operators who 
buy a couple of clapped-out old 


tuition and then try serious off- 
roading on a course that will 
leave your vehicle dirty but 
undamaged. Call him on 
0536-77009& 

After a day’s driving through 
mud and water, I promise you 
will never look upon your on- 
off road 4x4 as just a high- 
slung car substitute again. 


Land Rovers and rent a dis- 
used quarry. 

Vince Cobley, who runs off- 
road events in Northampton- 
shire, says an inexperienced 
driver of a 4X4 on rough terrain 
can be a disaster. His firm, Pro- 
Trax, can provide vehicles and 
tuition. But if you have a 4x4 
of your own, you can have 



/ 


A BMW to tempt Golf and Escort drivers 


B MW stresses that Its 
new 3-door Compact 
is not a hot batch- 
back but a smaller, 
more affordable version of the 
3-Series saloon. Although Sins 
(22.5cm) shorter, it has the 
same wheelbase and Interior. 
What yon lose In luggage 
room - and it is not very 
much - yon gain in accessibil- 
ity by having a tailgate 
instead of a boot lid. pins split 
folding rear seats. 

Prices of tbe eight-model 
range start at a remarkably 
low £13,350 for the 316i and go 
up to £18,020 for a 3l8ti Lux 
automatic. A 318 tds turbo- 
diesel, priced around £14,500, 
is due early next year. 


The two Compacts I sampled 
were the cheapest 316i and 
318ti (£15.290). They were typi- 
cal BMWs in every way: rear- 
wheel driven, solidly built 
well mannered and refined, 
with a suppressed eagerness. 
Of the two, I preferred the 3161 
(pictured). Its L6-&tre, 8-valve, 
102 horsepower engine 
sounded sweeter than the 
more vigorous (140 horse- 
power) 16-valve 1.8-litre. 

I felt I could live with its 
less urgent - though still more 
than adequate - acceleration 
and lower theoretical maxi- 
mum speed because it was a 
car with which one struck an 
instant rapport 

Sensible drivers could expect 


average fuel consumptions of 
8&2mpg (7.4 l/100km) for the 
1.6-litre and 34mpg <8.31/ 
100km) for tbe l -8-litre. The 
turbo-diesel should return 
47-9mpg (5J9 1/lOOkm). 

Standard equipment 
includes ABS brakes, driver's 
side airbag, power steering 
and central locking with 
immobiliser - but you most 
buy your own radio. 

BMW GB says the Compact 
is designed to attract former 
owners of the lapsed, old- 
shape two-door 3-Series. No 
doubt it wifl. But l can see It 
making plenty of VW Golf, 
Ford Escort and Vanxhall 
Astra owners contemplate 
baying their first BMW. 


Battle of 
the jumbos 


Continued from Page I 


pick up market share. 

Any passenger with a con- 
firmed ticket who risks being 
bumped off an overbooked 
flight should stand his ground 
in the check-in line. Airline 
staff will try to persuade pas- 
sengers to step aside to sort 
out the problem to avoid delay- 
ing the entire check-in process. 
Those who agree will miss 
their flight Those who make a 
fuss will get a seat usually 
with an upgrade. 

Liberalisation, globalisation 
and consolid a ti on in flu* indus- 
try have other implications for 
passengers. For the past few 
years, ai rlines have all been 
jostling to form alliances, buy 
equity stakes in each other, 
and to form commercial part- 
nerships to extend their global 
Teach and market penetration. 

The prevailing trend has 
been code sharing agreements. 

Bob C randall , the chairman of 

American Airlines, the world’s 
biggest carrier, describes these 
deals as the great deception”. 
Code sharing gnahp » $ two air- 
lines to use their ticket codes 
on each other’s flights- A pas- 
senger may twnk he is flying 
BA all the way from Loudon to 
Cindnatti because his ticket 
says so, but he might be chang- 
ing aircraft in Pittsburg and 
continue his journey on USAir, 
BA’s financially troubled 
American partner. What you 
expect from BA is not what 
you may get from USAir. 

Technology is also continu- 
ing to change the nature of air 
travel Jet legs are getting lon- 
ger. New Airbus and Boeing 
airliners can fly nonstop for 15 
hours or more, and the manu- 
facturers are already studying 
the development of 800-1,000 
seat double-deck super jumbo 
aircraft, which could transform 
long distonty air travel into an 
extended city rush-hour crush. 
How are you going to make 16- 
hour non-stop journeys bear- 
able? Airlines are already 
developing new high-tech 
entertainment systems includ- 
ing electronic gambling and 
multi-channel videos. 

Richard Branson pioneered 
the idea of bringing back a 
sense of ftm to air travel when 
he started his airline 10 years 
ago. He introduced first class 
travel at business class prices, 
an extensive library of in-flight 
entertainment, in-flight mas- 
sages, the possibility of order- 
ing a suit just before taking off 
in London to be ready on 
arrival in Hong Kong, and, 
according to some of Ms stew- 
ardesses, the tradition of giv- 
ing a resounding send off to 
any passengers graduating to 
the “mile high dub"; those 
who succumb to the sexual 
amusement long flights are 
said to provoke. 

That is -Virgin’s special style, 
but its bigger airiSne rivals are 
also adapting to the new 
demands of lon g dis tanc e trav- 
ellers. It Is no longer just a 
question of price and comfort. 
It is also the introduction of 


what British Airways calls a 
seise of well-being in the skies 
by becoming more conscious of 
the health needs of passengers. 

For the future super jumbos, 
BA has already drawn up plans 
to include lounges and gyms, 
even possibly a swimming pod 
on board. Airbus has also been 
working on designs for its pro- 
posed A3XX jumbo with self 
catering cafeteria-style facili- 
ties on board to avoid tbe prob- 
lem for the crew of feeding up 
to 1,000 passengers. 

Mass air transport is not 
only becoming a logistical 
headache for consumers but a 
health hazard. This is not 
because modern jets are dan- 
gerous (they are far safer than 
road or rail transport), but 
because hours spent crossing 
time zones in a cramped cabin 
with the same oxygen level as 
Mexico City is bad for you. 

Just like pilots, passengers 
are having to monitor much 
more carefully what they eat, 
drink and do on long trips. 

Businessmen, 
politicians and 
diplomats have 
made serious 
errors of 
judgment 
straight after a 
long journey 

And airlines are already adapt- 
ing their in-flight service to 
respond to the new health 
issues raised by modem jet 
transport They are increas- 
ingly offering lighter meals 
and introducing more long dis- 
tance non-smoking flights 
despite the risk of losing busi- 
ness in some markets. 

In adding leisure facilities to 
their aircraft airlines are alwn 
responding to research which 
suggests that it is a waste of 
time to work on a long flight 
Studies by the Royal Air Force 
have shown that It is difficult 
to concentrate and to assimi- 
late many new foots on a long 
haul flight. Jet lag is also 
known to cause loss of effi- 
ciency on arrival, and has led 
many businessmen, politicians 
and diplomats to make serious 
errors of judgment straight 
after a long journey. 

John Foster Dulles, the late 
US Secretary of State, admitted 
just before he died to a critical 
mistake that probably led to 
the 1966 Suez crisis because of 
jet lag. Immediately after 
returning to Washington from 
a Middle East diplomatic shut- 
tle, he learnt of President Nas- 
ser’s agreement to buy arms 
from the Soviet Union. Tired 
and angry, he decided to cancel 
a big loan for the Aswan dam 
project in Upper Egypt. The 
Suez conflict followed with tbe 
subsequent nationalisation of 
the Suez canal and war with 
Egypt 


€ B € L 

the architects of time 









r nVi a>. 


Soccer 


Clough: 

a top 
boss but 
no saint 


Philip Coggan tackles a 
controversial autobiography 


I t 13 a Common mlstaka to 
assume that sporting 
heroes are afl-rannd lov- 
able individuals. 

Even though Paul Gas- 
coigne can dribble round 
defenders and find a colleague 
with a 40-yard pass, he would 
not be most parents' choice as 
the ideal son-in-law. 

It is thus with a heavy heart 
that one approaches Brian 
Clough’s autobiography. Much 
as one admires the man's man- 
agerial record, his strident tele- 
vision appearances conjure up 
fears of a 200-page long taxi 
driver-style rant 
The book Ls not that bad, 
although the first chapter 
might have come from a Monty 
Python style script conference. 
The opening sentence - “If 
ever Fm feeling a bit uppity, 
whenever I get on my high 
horse, I go and take another 
look at my dear Mam's mangle 
that has pride of place in the 
dining-room" - is ripe for 
delivery by Michael Palin, 
Later on. we get Clough the 
philosopher “It's not the fash- 
ion to say this nowadays, but a 
woman's job is to be there (in 
the home)." Thanks, Brian, but 
Bertrand Russell can rest easy 
in his grave. 

One unexpected emotion 
that leaps out of the football- 
ing section of the book is sad- 
ness. His playing career was 
cut short by a knee injury, 
without the international rec- 
ognition that he clearly felt he 
deserved, and his record 
appears to justify (204 goals in 
222 games for Middlesbrough 
but only two caps for England). 

His outspokenness ensured 
that he never became manager 
of his country but now, ironi- 
cally after his retirement, the 


N ews of England's 
exploits at the start 
of their Australian 
tour made me so 
homesick for international 
cricket that when I passed a 
small exhibition of sporting art 
the other day, I wait in to look 
at its pictures of cricket. 

They are in the right spirit 
for the Ashes struggles. The 
poster advertising the exhibi- 
tion Is taken horn a screen- 
print of a batsman at the 
wicket, his bat, front pad and 
gloves closely aligned as the 
only hope against the bowling. 
When you look at the picture, 
you are looking down the 
wicket at him. The picture is 
called The Gladiator, and that 
is how the artist, Andrew 
Aarons, sees every modem 
cricketer - “a hero, a gladiator, 
going out and conquering”. 

Trying to conquer, at any 
rate. Long spells of defeat 
makes the contest, such as 
England cricketers and cricket 
fans were experiencing until 
last summer, grim as well as 

life-threatening. 

In the winter of 1992-93, 
England lost all four tests 
against India and Sri Tanka 
before going cm to lose their 
third successive Ashes series 
the next summer. When Mike 
Atherton took over the cap- 
taincy from Graham Gooch, 
and won the 1993 Oval Test, 
too late to save the series, it 
was England's first Test vic- 
tory in 19 Tests against Austra- 
lia. 

As any English cricket fan 
knows, watching a losing team 

is hard work. And so is playing 
in one, with the constant 
expectation of more failures to 
come as well as those already 
accumulated. In the unlikely 
event of a triumph, such as 
Graham Gooch’s courageous 65 
and 133 against Australia at 
Old Trafford in 1993, it is a solo 
triumph, bereft of team sup- 
port When Gooch performed 
those heroics, only one of 
England' s other first six scored 
as many as 30. 

No wonder Aarons speaks in 
fighting language of those who 
watch sport “They are partici- 
pating in the contest; they are 
out there for the kill and the 
blood.” 

Spectators in Aarons* pic- 
tures watch their heroes 
keenly, fiercely, aggressively. 
With crowd uniforms differen- 
tiated from each other only by 
brightly coloured ties, they 
urge fearful batsmen or bat- 
tered boxers to keep fighting. 

It is interesting that Aarons 
sees cricketers, boxers, sumo 
wrestlers, tennis players and 
jockeys as the great champions 


Football Association has 
finally appointed a coach with 
a controversial record and a 
Clough-like devotion to the 

pace big gamp 

He lingered on as manager of 
Nottingham Forest too long, as 
lie readily admits, so his distin- 
guished career ended, not with 
an FA Cup final appearance in 
1991, but with relegation in 
1993. By that stage, bis youth- 
ful good looks had gone and 
his face revealed the ravages of 
a problem confessed in the epi- 
logue - he drinks too much. 

Then there are the break- 
downs in personal relation- 
ships which litter the book. His 
appointment as skipper split 
the Middlesbrough team Into 
two camps. He describes his 
first ^hail-man as “one of the 
most evil men I have ever 
met”. He encountered sullen 
hostility from the players at 
Leeds and lasted only 44 days 
in the job. 

Saddest of all is the break-up 
with Peter Taylor. It Is easy to 
forget but the greatest suc- 
cesses of Clough's career - the 
League championships, the 
European Cups - were 
achieved as part of a double 
act Taylor spotted the players, 
Clough motivated them. 

What kept the duo going was 
the “cheeky chappy” element 
of Taylor's personality. 
Clough's fondness for Taylor, 
which excused the latter’s 
habit of “slipping off” home at 
the earliest opportunity, was 
perhaps due to his assistant 
being the only person at the 
club who was not intimidated 
by him. While the odd player 
gets an honourable mention, 
such as John Robertson and 
John McGovern, the book is 
dedicated to Taylor. 





Clough: his book fai not that bad, although the first chapter might have come from a Monty Python style script conference 


Yet in the seven years that 
preceded Taylor’s death, 
Clough admits that he spoke 
only a few words on the tele- 
phone with his old colleague. 
They had fallen out when Tay- 
lor, then manager at Derby, 
had poached Robertson from 
Nottingham Forest 
One revealing passage in the 
book says it alL- “It was an 
astonishing and bitter end to 
our relationship, but my con- 
science was untroubled. I 
didn't instigate it” That fierce 


Cricket 


Gladiators 
captured by 
the artist 

Teresa McLean visits an exhibition 



f;r;m xm 



Aarons’ The Glacfiator 

of modem sport They give 
their followers an individual 
truth. Aarons paints rugby 
scrums, with a corporate mus- 
cularity in numbers, but he 
rarely paints cricket teams, 
nearly always individual crick- 


eters. He is an artist, not a 
cQjich, and is free to hold team 
spirit in artistic contempt 
It was no surprise that he 
picked Ian Botham as the 
supreme gladiator of contem- 
porary cricket. He does not 


pride kept Clough apart from 
his old friend. 

And pride also lies behind 
the most controversial part of 
the book - the section dealing 
with the Hillsborough disaster. 
Yorkshiremen are often proud 
of their plain speaking, of their 
willingness to call a spade a 
bloody shoveL 

When It applies to criticism 
of chairmen, football commen- 
tators or FA bureaucrats, plain 
speaking can be amusing. But 
when the subject is a tragedy. 


paint Botham, or anyone else, 
as an identifiable player, but as 
an embodiment of cricketing 
power. He seems not to have 
acknowledged Botham's retire- 
ment “He’s got this incredible 
personality. You know, when 
you’re at Lords and he's walk- 
ing to the middle, this tiny lit- 
tle dot, and he's radiating 
power.” 

Bowlers pile on the pressure, 
but batsmen are the ones who 
have to survive. Aarons told 
me how he learnt this from 
experience. He went to Cam- 
berwell Art School when only 
13 years old and in his first 
summer went on a school out- 
ing to the Isle of Wight The 
man who ran the youth hostel 
where they stayed was a 
cricket fa n atic and challenged 
the art school to a game. 

Camberwell was the home of 
one of the first fine cricket art- 
ists, Nicholas Wanostrocht, 
nicknamed Felix. Felix painted 
many an early 19th century 
cricket portrait and invented 
the awesome Catapulta bowl- 
ing machine to teach school- 
boys how to bat The art school 
had a tradition to uphold. 

Aarons saved Camberwell's 
honour by turning, nicking 
and snicking the Isle’s fast 
bowlers for at least 40 runs, far 
more than anyone else on his 
losing side. From that day he 
was a cricket addict 

His wicketkeeper, guarding 
the entrance to the exhibition 
with huge, gloved hands, is 
drawn in Conte crayon which 
suits the wicketkeeper's job. 
Everything is black and white 
with sudden dashes of grey. No 
colour needed. 

Aarons finds wicketkeepers 
breathtakingly exciting. I could 
not agree with him that they 
stand much closer up to the 
stumps nowadays. Surely no 
contemporary 'keeper would 
stand up to Alec Bedser’s Cast 
medium swingers as Godfrey 
Evans did in the 1940s. But I 
know what he means by the 
special flamboyance of today’s 
wicketkeeping, using television 
replays to emphasise its spec- 
tacular achievements. 

Aarons gives us a creative, 
handmade version of the dra- 
mas which cricket photogra- 
phers record. He continues 
cricket artists' custom of mak- 
ing a good number of etchings 
and prints, so cricket lovers 
can afford his art They are not 
cheap, but cheaper than paint- 
ings. His Gladiators screen- 
print costs £225 plus VAT. 

■ A small selection of Aarons’ 
work remains on show at The 
BotHUy Galleries, 71 Lensfield 
Road, Cambridge. Tel: 
022*566555. 


when the only result of your 
words is anger and anguish 
among the relatives and 
friends of the dead, then the 
wise man keeps his silence, 
however sincerely held his 
views. 

Therein lies the paradox of 
sporting achievement The 
same pride that causes Clough 
to give needless offence is the 
quality that kept him going 
through the disappointments 
of a wrecked playing career, 
the departure at Derby and the 


shot stay at Leeds. 

And Clough was undoubt- 
edly in the top drawer dt man- 
agers. Not only did he win the 
Championship with two differ- 
ent clubs, but Forest retained 
the European Cup - both 
extremely rare achievements. 
Not only was this done with a 
slick passing and entertaining 
style and an excellent disci- 
plinary record, but it was done 
at clubs with modest 
resources. Alex Ferguson, with 
all his Manchester "United 


Inter nationals, fa straggling. to 
quality for the last stages the 
European Cup. . . 

How did Clough do it? Read- 
ers hoping fbrthe magic tips to 
managerial success vrill be dis- 
appointed. Clough insists he 
kept it simple r- defenders had 
to tackle, mid centre forwards 
had to score. 

Apart from that, his main 
secret was to keep the 'players 
relaxed and to insist an L train- 
ing with tiie ball, rather than 
mindles s rmmd-the-field runs. 


;By the'' .end 'of his career, that 
admirable precept had become 
a 'weakness, as Forest Payers 
faile d to match 1 the fitness of 
then; opponents. 

: But . maybe simplicity was 
the secret Sport is:too often 
over-intellectualised. An iron 
wifi, allied te a few basic prin- 
ciples took Clough to the top; 
ft did not, as his autobiography 
reveals, make him a saint: 

.■ Clough, the Autobiography 
by Brian Gough with John 
Sadler, Partridge Press, £lfL99p. 


Rugby /Tom Fort 


T he Rugby Football 
Union has embarked 
on a crusade to win 
hearts and minds or, 
as the RFU puts it characteris- 
tically, to “transmit the rugby 
union message”. This cam- 
paign has already achieved one 
extraordinary feat that of hav- 
ing a slogan which surpasses 
in staleness and fatuity any- 
thing the political parties man- 
aged to dream up for their 
autumn conferences. 

The rallying cry is - hold 
your breath - "Rugby Union 
Rules OK”. Catchy, eh? In a 
publication called “Working 
With The Media”, it is pres- 
ented in the form of a mne- 
monic. Thus, “R is Rugby” the 
greatest game in the world. “U 
is for Unconverted”, not tries, 
but people who do not realise 
that rugby Is the greatest game 
in the world. “G is for Grass- 
roots rugby” the greatest game 
in the world at Its lowest leveL 
And so on. 

Fort's aide de memoir would 
have proceeded rather differ- 
ently. “R is for Roughhouse” if 
legalised mayhem is to your 
taste, this is your game. "U is 
for Ugly” no prejudice here. “G 
is for GRRRR” the battle cry of 
front rows preparing to 
engage. When we come to B in 
this publication, the extent of 


Bloodletting and beer 


Arrne Wilson and Lucy Dicker 
are attempting to ski every day 
of 1994 on a round-the-world 

trip. With five weeks to go, they 
are in North America. 


the copout becomes clear “B 
is Blast Out The Message” that 
rugby union is the greatest et 
cetera et cetera. But to 99 per 
cent of those who play the 
greatest blah blah, B stands for 
nothing of the sort “B is for 
Beer” the feel on which rugby 
runs. 

Nowhere does the pamphlet 
mention tbs stuff. There are 
pages of worthy advice on get- 
ting youngsters off street cor- 
ners, blending healthy athletic 
exercise with the unique bonds 
of friendship which a team 
game bestows, and so on. But 
there is not a squeak about the 
activity which in any rugby 
club comes second only to the 
business on the field - and in a 
good many takes precedence 
even over that - namely, tip- 
ping your bead back and pour- 
ing ale down your throat 

The heart of a rugby club is 
its bar, and its purpose is to 
slake the mighty thirst of play- 
ers and supporters. 

But the collective mind of 
the powers at Twickenham has 
turned to higher ideals. The 
ethos of white wine and soda 
appears to prevail, and the air 
is thick with exciting concepts 
of marketing, image-enhance- 
ment. community links. Muddy 
boots, jugs of bitter, carthorse 
props with vast paunches, all 


this belongs to the dark ages. 
Rugby union is becoming 
clean-living, diet-conscious, 
media-oriented, self-aware. - 
The central message in this 
document is that the game 
must be “bolstered and pro- 
moted”. To be fair, much of the 
advice it contains on how to 
secure decent media coverage 
is sound, if rather obvious. But 
while It ls full of tips such as 

‘The recurrent 
theme is that 
immense 
quantities of 
beer have been 
consumed 1 

this: “Newspapers, radio and 
television love children. They 
make good copy”, it is conspic- 
uously silent about the other 
species of story beloved of 
inquiring hacks. 

These are the tales of pillage 
and destruction, of hotels and 
bars drunk dry and wrecked, of 
air hostesses leered at and 
pinched, of bottoms bared; of 
loutish pranks, dirty ditties, 
ra m pant rowdyism and oafish- 
ness. The recurrent theme is 


T here is another Colo- 
rado. Off the beaten 
track, tax away from 
the glitz of Aspen, the 
might of Vail and the great Ski 
the Summit circus or Brocken- 
ridge. Keystone and Copper 
Mountain, are the folksy old 
ski hills of which few British 
skiers have ever heard. 

"Most skiers leaving Denver 
have tunnel vision," says Rob 
Linde at Eldora, the nearest of 
the "front range" resorts to the 
mile-high city. 

"They put their foot down on 
Interstate 70 and head for the 
Eisenhower Tunnel and the 
famous resorts on the other 
side,” he explained. 

It takes a little imagination, 
perhaps, to turn off and 
explore resorts such as Eldora, 
Loveland and Winter Park 


FT Ski Expedition/ Amie Wilson 

Denver detour 


which do not have the interna- 
tional clout of Aspen, Vail or 
Summit County but attract 
local skiers from Denver. The 
road to Eldora takes you into 
another world - through 
Pickle Gulch and Gold Dust 
Village into the old gold-min- 
ing territory of Black Hawk 
and Central City. 

They still pan for gold here - 
Vic’s Panning shack is one of 
many still operating. And if 
anyone hits pay-dirt, the cam- 
nos - Rich Man, Gold Mine 
and Bronco Billy's - or Pros- 
pectors Poker Parlor and the 
Silver Hawk Saloon are hand- 
ily placed to ensure the spoils 
are quickly ploughed back into 
the local community. 

Apart from some good, steep 


skiing in Moose Glades and 
Jolty Jug Glades, and some 
tough runs such as Ambush 
and Psychopath. Eldora is 
most famous for being kind to 
snails. 

It has won friends by helping 
m a study of the rare Rocky 
Mountain capshell variety 
claimed to be among the oldest 

living creatures on earth. After 

sending in teams of divers to 
investigate, the resort started 
“ “tin g the amount of water 
taken from Peterson Lake for 
snow- m a king in case its 
demands were reducing the 
snail population. 

Winter Park is kind to local 
pondJife too: the trout popula- 
tion has been protected by 
building a culvert over a 


that immense quantities of 
beer have been consumed. 

Nor does the RFU have any- 
thing helpful to say to its press 
officers about another murky 
aspect of the greatest game: 
foul deeds on the pitch. They 
are urged to titillate sports edi- 
tors with jolly items about 
long-serving tea ladies, monog- 
lot Japanese recruits, and pho- 
togenic women players. 

But are they to be equally 
forthcoming about the sku- 
llduggery an d criminal nasti- 
ness which reduced last Satur- 
day’s local derby to a tribal 
bloodletting? 

The RFU may prefer to pre- 
tend that rugby is a game lor 
anyone, of whatever size, sex, 
colour, creed, age, tempera- 
ment and taste, who happens 
to enjoy chasing an oval ball 
around a playing field. , 

It is, in feet, a tough, rough, 
messy, muscular form'of. war- 
game, forbiddingly complex hi 
its rules, immensely rflfffonft to 
play well, with an ineradlcably 
dark side to it. It is for people 
who have a tough, rough side 
to them, who enjoy doling out . 
a little punishment and do not 
mind taking it, who relish get- 
ting hot, dirty, bruised and 
exhausted and who, generally 
speaking, fancy a pint at the 
end of it alL 


stream which crosses the 
slopes. Owned by Denver, Win- 
ter Park supplies much of the 
city’s recreational needs in 
winter and summer. With 113 
trails and a vertical drop of 
more than 3,000ft it is one of 
the largest ski areas in the US 
but has little internat ional traf- 
fic. 

It is also just about the only 
significant ski area left in the 
west still semed by a ski train. 
The Rio Grande train leaves ■ ■ 
Denver’s Union Station each ' 
Saturday and Sunday 'at 
L30am for the spectacular 70- 
mile journey meandering - 
through rocky gorges and - 
almost 40 tunnels to the -da . 
area, leaving again at 4 pm 
sharp. 

Loveland cl aims more ter 
min than Aspen Mountafri, a 
“fiber base than Steamboats 
summit and more snow than. 
almost any other Colorado 
rasort, yet most skiers "roar 
past it on their way to Summit: 
County and ValL 



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WEEKEND NOVEMBER 26/NOVEMBER 27 1994 



WEEKEND FT XIX 


ARTS 



id beer 



Scene from 'Love! Valour! Compassion!’ by Terrance McNafly, the first big hit of the season playing in the non-profit making Manhattan Theatre Club 

Drama on off-Broadway 

Karen Flicker reports on the changing face of New York theatre 


M ight this be the year that the 
Tony Awards will be finally 
forced to change? Though it 
has been true for years that 
the centre of the American theatre has 
shifted off-Broadway and to the regions, 
the Tonys, the annual awards that are the 
most visible manifestation of American 
theatre, have maintain erf their policy of 
honouring only Broadway shows. But 
recent events have sounded Broadway's 
death knell louder than ever before. 

First was playwright Neil Simon’s 
announcement that he is bringing his next 
play, London Suite, to an off-Broadway 
theatre when it reaches New York after its 
current Seattle engagement. “It's just not 
economically viable for ns to go to Broad- 
way any more,” said Simon of his decision; 
bringing a straight play to Broadway costs 
a minimum of $1.5m, as opposed to |0.5m 
off-Broadway. This is a scathing indict- 
ment indeed from the only American play- 
wright whose name still guarantees a cer- 
tain level of financial success on 
Broadway. 

A further blow was struck with this 
week's announcement that Tony Rush- .. 
oar's Angels in America, the most lauded 
and hyped Broadway play of the past 
decade, is to dose an December 4, felled by 
dwindling audiences and high overhead 
costs, having recouped less than 70 per 
cent of its backers’ investment. Mean- 
while, the best-received American play 
since Angels, Edward Albee’s Three Tad 
Women, continues its healthy run at the 
Promenade Theatre - off-Broadway. Only 
one new American play Is set to open this 
year on Broadway, while off and off-off 
Broadway is buzzing daring the busiest 
theatrical autumn in recent memory. 


The first big hit of the season is Terr- 
ence McNally's warm and very funny ser- 
io- comedy Love! Valour! Compassion!, 
which is playing at the non-profit making 
Manhattan Theatre Club through January 
15, with plans for a commercial transfer. 

Unabashedly gay in its milieu and view- 
point, and addressing as it does the search 
for love and the ever-presence of death in 
the age of Aids, the play inevitably begs 
comparison to Angels in America, but 
Love! Valour! Compassion! neither aspires 
to nor achieves Angels' scope nor its level 
of socio-political commentary. McNally's 
gift is his ability to create believable char- 
acters and evocative situations in which 
exhibit their foibles and strengths; he also 
writes some of the best laughs lines. 

T his play finds McNally straying 
further from the traditional 
domestic comedy form than he 
has in recent years - characters 
break from the action to speak directly to 
the audience, and time flows freely 
between flashback and forward action. 

The play follows the events in the lives 
of eight gay men over three holiday week- 
ends In an upstate New York country 
house. As the house’s owner, famous cho- 
reographer Gregory Mitchell, endures and 
overcomes creative block, his angelic, 
blind boyfriend fends off the advances of a 
sexy Puerto Rican dancer and tries to find 
sense in his sister’s tragic death. The 14- 
year perfect-couple relationship of Perry 
and Arthur endures quiet crisis (“we’re 
role models," explains Perry, “it's very 
stressful"), while Buzz, a musical theatre- 
obsessed, HIV-positive costume designer 
fells in love with James, an Aids-infected 
Brit who comes to America to mend 


bridges with his mean-spirited twin 
brother (both twins are played, in a bra- 
vura turn, by John Glover) and to die. 

But to dwell on plot Is to miss the point 
The play is at its weakest when it gets 
hung up on storytelling and at its best at 
evoking that languid holiday atmosphere 
in which nothing much to be hap- 
pening, except mnmpnte that tha charac- 
ters will remember for the rest of their 
lives: bantering exchanges in hammocks 
and on lakeside rafts; spontaneous skinny 
dips (frontal nudity is rampant in this play 
as is, for that matter, ribald language); 
dinner parties that unexpectedly turn 
ugly; over-competitive tennis games; 
charged late-night encounters. 

Joe Mantello's lovely, intelligent produc- 
tion meets the play more than halfway, 
playing up its lyrical qualities without 
stinting on pace. ManieDo and set designer 
Loy Arcenas have wisely given the produc- 
tion a unstructured, non-literal design, 
creating a heightened world in which the 
play's breaks from naturalism make per- 
fect sense. 

The ensemble Is, on the whole, first-rate. 
Stephen Spinella, in his first performance 
since his double Tony- Award winning turn 
in Angels in America, is admirably 
restrained as the uptight businessman 
Perry. Nathan Lane, one of America's fun- 
niest actors, reveals the breadth of his 
dramatic talent in the showman's role of 
Buzz; his transformation of a third-act 
speech about why life should be more like 
musical theatre horn a show-off rant to an 
agonised cry beautifully captures the 
play’s funny -tragic spirit Stephen Bogar- 
dus, sporting an unconvincing stutter and 
an uncomfortable manner as Gregory, is 
the only weak link. 


Creamy notes from Vienna 


T he Vienna Philhar- 
monic's visit on 
Wednesday invited 
comparison with the 
splendid Bavarian Radio Sym- 
phony Orchestra at the Barbi- 
can two days earlier. Bat com- 
parison would have been 
easier if both orchestras has 
played In the small hall. 
Whereas the Bavarians' 
resounding, vastly spa cious 
account of Bruckner’s Eighth 
Symphony under Lortn Maazel 
had room to breath, the ana 
lytical dryness of the South 
Bank did little to flatter those 
famous Viennese strings. 

Still, they came out of it 
pretty well, and gave us a real 
helping of whipped cream in 
the Brahms Hungarian Dance 
which they played as their sec- 
ond encore. 

Originally, Giulini had been 
billed to conduct, but he had 
cancelled some time ago, and 
James Levine made something 


very different of Schubert’s 
Unfinished Symphony and 
Brahms’s Fourth from the 
kind of performances we 
might have expected to hear 
from Giulini. Levine kept the 
Schubert on the move - quite 
rightly so, for the Symphony 
is often taken too slowly, with 

both movements too close in 
tempo and too much alike m 
character. 

Levine himself stayed 
unusually still, his baton trav- 
elled merely a few inches 
except when . he wanted to 
rouse the orchestra. His over- 
all view was serene, and 
though the playing was lovely, 
it was well on the way to 
being bland. Yon got the feel- 
ing the orchestra could have 
played as well on automatic 
pilot, for they certainly play as 
an ensemble. 

Brahms's Fourth Symphony 
was given a lot more impulse 
- as well it should. The first 


WESTMINSTER 
ANTIQUES EA1R 

Royal Horticultural Han, Vincent Sq. SW1 

December 1-4 

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Attractively dispbyed Antiques 



movement took on such 
momentum, it seemed likely to 
run away with itself. But it 
did not, and the closing 
moments were thrilling: 
rather too thrilling for the 
impact of the work as a whole, 
for the great cumulative struc- 
ture of the variations In the 
finale lacked a certain tension, 
despite many beautiful 
moments, including a gor- 
geously rounded flute solo. 

One of the Individual fea- 
tures of the Vienna Philhar- 
monic is the elegantly bur- 
nished sound of their horns: 
they played like a dream in 
the trio section of the scherzo, 
whose rumbustious outer sec- 
tions were much more refined 
than usual. As a whole, the 
performances seemed too 
suave to be heroic. 

Sometimes the best of a con- 
cert comes once the official 
progr am me is over, and so it 
was here. For the first encore, 
the orchestra teased and pam- 
pered the final ballet of Schub- 
ert's music for Rosamunde as 


if it were their favourite child. 
The tiny gradations of pianis- 
simo on the strings, the mel- 
low blend of the woodwind, 
the gently pointed phrasing - 
this is why we have come to 
hear the Vienna Philharmonic. 

Adrian Jack 


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YOUR WELL... 

can help so many 
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London W2 JPG. 


Arts face Budget blues 

Antony Thomcroft argues the case for cash-strapped companies 


C an the beleaguered 
wagon train hold out 
until the cavalry 
arrives. "No”, says 
Mary Allen, secretary general 
of the Arts Council. “Yes", 
says Stephen Doreen, the heri- 
tage minister. 

The nation's arts companies 
are grappling with unprece- 
dented debts of at least £l2m. 
The National Lottery is coming 
to their rescue, with the first 
grants in April By then it 
could be too late for some. 

The lights are going out in 
January at the Salisbury Play- 
house and the Redgrave at 
Farnham. The Yvonne Araaud 
in G uildfor d is under 
The Everyman in Cheltenham 
has been forced to embark on 
co-productions with the nearby 
Bristol Old Vic. The Northcote 
at Exeter has become a receiv- 
ing house, not daring to risk 
its own productions. Regional 
theatres have collective debts 
of £4m. Regional orchestras 
have d efl e ft s totalling £L8m. 

. Of the flagship companies, 
the BBC, the National Theatre, 
the ENO, and the Royal Opera 
House Covent Garden have 
combined debts of over £5m 
and the South wanfr Centre Is 
£370,000 in the red. 

The trouble is that the arts 
have cried wolf so many times 
before that the Treasury , not 
their most stalwart supporter, 
is likely to be indifferent to 
their fate in Tuesday’s Budget 
But even if there is nothing 
but an inflation increase in 
Stephen DorreU's paltry budget 
of around £lb, he still hna the 
power to divide it up, giving 
more to the arts at the expense 
of sport, heritage or the British 
Library. He can, at the very 
least, restore the £3 2m axed 
from the Arts Council of 
England a year ago. This, plus 
an inflation increase of around 
£4m, should be enough to keep 
the shows cm the road. 

Dennis Marks, director of the 
ENO, sums up the problem. 
The ENO is having a good sea- 


son, playing to 78 per cent of 
capacity, way above the 60 per 
cent of a year ago. "If we get a 
grant that reflects inflation, in 
three years time we will have 
reduced our current deficit of 
£3 Jm to just £Dn. If we get the 
standstill grant we are prom- 
ised our deficit will stay the 
same: we will be throwing 
money into a black pit". 

The return of the £3 .2m, 
which is what Arts Council 
chairman Lord Gowrie has 
modestly put in for, could be 
enough. It would tide the arts 


over a real, but temporary, cri- 
sis. For, if Loudon is any indi- 
cator, the recession is over. 
The Big Four, which absorb 
over £5Qm of the English Arts 
Council's £!86m budget, are 
doing rather well. The Royal 
Opera House is currently bit- 
ting 90 per cent Of its flnanMal 
capacity and hopes to knock 
another £600,000 off its £l3m 
deficit while the ESC is match- 
ing the 83 per cent houses it 
achieved last season. 

The National Theatre had a 
bad summer, partly because 


Help lines for the beleaguered 


Fears that next week’s 
Budget win be bad news for 
the arts have been tempered 
by anticipation over the 
National Lottery jackpot. 
Potential applicants can now 
apply for the cash - expected 
to be about £250m annually. 

The Heritage Fond pub- 
lished its guidelines for 
applicants last week; the 
Arts Council announced 
details to clients yesterday. 
Telephone 0171 649 1345 to 
obtain a simple guide for 
potential heritage projects. 
The Lottery Line at the Arts 
Council can be reached on 
0171 312 0123. Both will 
acoept applications after Jan- 
uary 4, 1995. 

There are few surprises in 
the guidelines. The Arts 
Council does not expect to 
make grants of less than 
£5,000. Commercial 
operations can apply, pro- 
vided the project will benefit 
the public. But in the main it 
will be charities, local 
authorities, schools and col- 
leges and amateur groups 
that will receive the prom- 
ised miltions. 

The money will be spent 
constructing new, and 
improving old, buildings in 
which the arts and crafts can 
flourish. The determination 


not to allow lottery money 
seep away in day-to-day run- 
ning costs remains, but 
grants can be used to buy 
equipment and to commis- 
sion works of art. This 
should enable arts companies 
currently receiving subsidy 
to devote more money to pro- 
gramming. 

The range of potential 
applicants covers circus, 
mime, film, video And cr af t s , 
as well as drama and music 
companies. If more than 
£100,000 is needed for the 
scheme the organisation 
should be able to contribute 
25 per cent of the total cost; 
for smaller projects at least 
10 per cent is expected. 

The key aim remains "to 
give the maximum benefit to 
the public by supporting pro- 
jects which make an impor- 
tant and lasting difference to 
the quality of life of people 
throughout England.” 

In contrast the Heritage 
Lottery Fund can offer 
endowment money in special 

rin ’ j i n iidanMt and gill ta frff 

a flexible attitude towards 
partnership funding. 

Next week the Millennium 
Commissioners will reveal 
their eagerly awaited guide- 
lines and applicants can then 
decide which body to go for. 


one production, Johnny on the 
Spot, proved a box office disas- 
ter, but bringing back the 
money spinning The Wind in 
the Willows should keep any 
deficit on the year to under 
£500,000. The South Bank is 
reporting a sudden uplift in 
support, with the LPO, its 
house orchestra, attracting 
audiences of 63 per cent 

In the regions, however, 
audiences are staying at home. 
The enervating financial strug- 
gle forces artistic directors to 
walk a tight rope between 
imaginative work and commer- 
cial fare that might guarantee 
good box office receipts. But as 
Covent Garden and the ENO 
discovered a year or so ago, 
there is a limited market even 
for traditional favourites. 

Such a safe approach is 
anathema to the committed 
modernists, like the 87 play- 
wrights who this week 
bemoaned, in a newspaper let- 
ter, the lack of new plays being 
produced and sought a nation- 
ally ordained quota of new 
works. In feet the proportion of 
new plays pot on in 1993-94 - 
just over 3,000 out of 14,613 pro- 
ductions in the 70 theatres 
aided by subsidy - is roughly 
thr> Mind as a ago, but 

theatre managemente dare not 
risk presenting plays which 
are likely to lose money. 

This is the leap of imagina- 
tion demanded of Stephen Dor- 
relL His first comments sug- 
gest he judges artistic success 
by the size of the audience. 

This bottom-hue approach 
makes sense if the audiences 
are attracted by dynamic new 
productions, but is artistic sui- 
cide if companies go for 
. short-term box office salvation. 
Risk is what the arts are all 
about A dirt of safe produc- 
tions - theatres putting on 
Ayckbourn and Willie Russell, 
opera houses reaching for their 
Puccini and Mozart - soon 
becomes stale, the bedrock 
audience withers and the 
young are not attracted. 




FT 


UK ARTS GUIDE 


The FT is launching a weekly Arts Guide by fax starting this Saturday, and updated 
each week. It will cover many of the major theatre productions, operas, concerts, 
exhibitions and films taking place in the UK in the week ahead, which have been 
reviewed by the FT. To obtain a copy of the full listing and access to all the 
individual reviews, simply dial 0891 437200 on your fax machine and press START. 


Dial on your fax machine 
0891-437 200 
(Press START) 


FT ARTS GUIDE 

Dance/ FBm Books Exhibitions Theatre 

Opera 

Sleeping Frankenstein Pffcioa Pre-RapftaefiKa 
Beauty otWales 

Handed 

Gielgud Theatre 

Fax: 201 


■ - 


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by the 3 digit code which 
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event shown on the full listing. 


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(Press START) 


FT ARTS GUIDE 


HAMLET 

Not only is Stephan Dillansra Hamlet the freshest most Interesting, and most 
peculiar ingredient of Pater HaTs new staging of Hamlet, he is also fee most 
modem. The production Is curious in containing several efissfenlar acting styles, 
and DiHane’s performance makes most of the other key characters - Claudius. 
Gertrude, Ophelia, Folonius - seem somewhat artificial 


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subject to availability for: 

• Oliver • Crazy for You • Phantom of the Opera 

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BOOKS 


E mbalmed and canonised, 
Lenin was removed from 
the vulgar gaze for half a 
century following his pre- 
mature death and rapid apotheosis. 
His mummified body lay in a sar- 
cophagus in Red Square tended by 
a laboratory which grew to employ 
60 experts, among them three 
soviet n«»tomirigiis r a correspond- 
ing member of the academy of sci- 
ences, three doctors of science and 
12 PhDs. 

His brain was sliced into 30,963 
sections and lodged in a special 
institute where it was compared 
with the lobes of lesser geniuses. 
Although horribly withered by the 
cerebral disease which hilled him 
at the age of 53, this organ was 
periodically reported to have quite 
exceptional features - until, that 
is. Dr Oleg Adrianov pronounced in 
January: Tn the anatomical struc- 
ture of Lenin’s brain there is noth- 
ing sensational.” 

Lenin was sensational in one 


Lenin: true father of The T error 

t 

Recently declassified Soviet archives are revealing Russia’s hero in a new light, writes Christian Tyler 


way, however, says Dmitri Volko- 
gonov. fife was the greatest revolu- 
tionary of the century. For the rest, 
he was as fallible as any man - 
though much more callous. Unable 
to govern once he had grabbed 
power, he sought refuge in vio- 
lence. He was the true father of The 
Terror. 

For 25 years after Nikita Krusch- 
chev had denounced S talin ’s “mis- 
takes”, says Yolkogonov, the Rus- 
sian people asked themselves 
where Stall" had acquired his cru- 
elty. “None of ns - the present 
author included - could begin to 
ima gine that the father of domestic 
Russian terrorism, merciless and 
totalitarian, was Lenin.” 

This biography comes with two 


attributes which recommend it 
over other, perhaps more literary, 
portraits. One is the elegance of 
Harold Shukman’s English transla- 
tion. The other is the remarkable 
personal history of the author. 

Dmitri Yolkogonov, a military 
historian, was once a loyal slave of 
the system whose roots he now 
seeks to dig up. His father was exe- 
cuted on Stalin's orders and he 
grew up with his mother in a politi- 
cal exiles’ labour camp in Krasno- 
yarsk, western Siberia. He was a 
young tank commander, a high- 
ranking commissar and propa- 
ganda expert. As he told this 
reviewer when his biography of 
Stalin appeared in English: “I 
accept that I was one of those who 


did a lot to strengthen the totalitar- 
ian system." 

A former general in the Red 
Army and subsequently President 
Yeltsin's military adviser, he com- 
manded the forces that shelled the 

LENIN: LIFE AND LEGACY 
by Dmitri Voikogonov 

ffarptrCnUins £25. 55# pages 

recalcitrants in the Moscow parlia- 
ment building last October. Above 
all. he was chairman of the com- 
mission responsible for declassify- 
ing the Soviet state. Communist 
Party and KGB archives. 

In the painful process of his own 
recantation, says Yolkogonov, 


Leninism was the last mental bas- 
tion to ML In the book he presents 
Vla dimir Ulyanov as a gently- 
reared professional revolutionary 
with a compelling mind and wolf- 
ish eyes, neither vain nor person- 
ally cruel but driven by promiscu- 
ous and ruthless rage against his 
real or imagined enemies. 

He stripped the libera] and demo- 
cratic content out of Marxism and 
swore allegiance to the fanatic 
principle that everything is justi- 
fied - treason, tivfl war, terror - in 
pursuit of the goaL 

Lenin was an intellectual who 
read Aristotle and Spinoza and who 
described intellectuals as the “shit” 
of the nation. He seethed with 
hatred for the kulaks but, says his 


biographer, would have ■ teen 
arming the first to be purged if he 
bad not sold the family estate. 

Among the facts that lay hidden 
in the archive were details of his 
ancestry (Jewish, Asiatic and Euro- 
pean as well as Russian), tf the 
German financial support for Ids 
Bolshevik party* of Ms nervous dis- 
order final mental illness, of 
bis direct responsibility for the 
murder of the Tsar and his family. 

Nor, argues Yolkogonov, did 
Lenin ever espouse a more liberal 
economic system. “War commu- 
nism” was his chosen method and 
the so-called New -Economic Policy 
merely a temporary stratagem 
forced on him by rinmmsfcances. “It 
Is the biggest w»jgfa»in» to think that 


NBP. will pot am end to fim tenor” . 
be wrote toKhm ^ fel^ ^fe . 
dmH return to the WwjM to 
economic terror*?. V V ' • . - 
Voikogonov make*? Jarisb use- of. 

the files to sustain iris Qwsfa that 
Lenin's ideas - his habits of mind, 
rather -■ dunucterwed Soviet *parT 
tocracy” until, the very ^L^y' way 
of illustration he quotes frqm'h . 
1987 pdUtburo meeting where we 
hear Gorbachev spea Mbg ofL odn’s 
genius, Ligachev worrying about 
Trotskyism Mid Shevardnadze 
imhap pv with tiie j phra8e' < %^»- ■ 
Ing the kulaks- • V v 
T .lbe October Revolution ofMW 1 
was In fact a ajunter-revolutionaiy 
coup, acrordEog te Volktjgtmte^ft 
created a political cultur e that sttp 
permeates the Russian iitixeairyC. 
“In worshipping tbe 'genius * 
abase’ we cultivated a stefeS-jP*^ 
cbology in oursefres.” ' 

The icon may . have .been 
smashed, but worship is more pow? 
erful than .knowledge. 


Victorian who 
designed himself 

Asa Briggs admires a new biography of William 
Morris, artist and socialist extraordinaire 


N o Victorian, emi- 
nent or other- 
wise, was more 
critical of his 
own. age than 
William Morris, who was bom 
three years before Victoria 
came to the throne and died 
five years before her. “Apart 
from the desire to produce 
beautiful things," he wrote in a 
memorable passage in 1894. 
“the leading passion of my life 
has been and is hatred of mod- 
em civilization." 

Yet for all his discontent and 
for all his protest, he belongs 
unmistakably to the 19th cen- 
tury - even when he compares 
it unfavourably with the 13th. 
or strides into the future. He 
proves that the Victorians 
were their own test critics - 
both when they examined Vic- 
torian achievements and when 
they probed Victorian values. 
In his energy, which faltered 
only at the last, and in his 
amazingly wide range of 
achievement Morris was char- 
acteristically Victorian. The 
manifold thing s that he made 
belong to that century also. 

The first biography of hhn, 
by J.W. Mackail, appeared 
before the century and the 
reign was over. Since then 
there have teen many other 
biographies and many detailed 
and scholarly studies of Mor- 
ris's contributions to the mak- 
ing of embroidery, tapestry, 
stained glass, wallpaper textile 
dyeing, printing and wearing, 
illumination, calligraphy and 
book production. And there 
has been a devoted, sometimes 
uncritical, interest, frequently 
on the part of two separate 
groups of admirers, in his polit- 
ical views and actions, and in 
his conceptions of design. 

Morris himself, unlike them , 
saw his life as one piece. It was 
to a fellow socialist that he 
wrote in 1883, the year when 
he declared his new political 
commitment, that almost all 
the desi g ri ff used in his busi- 
ness T design myself. I have 
had to learn the theory and to 
some extent the practice of 
weaving, dyeing and textile 
printing: all of which I must 


admit has given me anti is still 
giving me a great deal of enjoy- 
ment". In the same spirit he 
approached the theory and 
practice of socialism. Those of 
his admirers who flailed to take 
his socialism seriously (fid not 
under s tand him 

Fiona MacCarthy does. Her 
biography is a work of synthe- 
sis, drawing on a wide range of 
sources, and it concentrates on 
presenting Morris as a whole 
man rather than on catalo- 
guing a for midab le list of his 
activities. Mackail tried to do 
the same, but MacCarthy 
chooses to examine aspects of 
Morris's personality that Mack- 
ail, writing near to his death, 
could or would not do. 

At the same time, her book 

WILLIAM MORRIS: A 

LIFE FOR OUR TIME 
by Fiona MacCarthy 

Faber & Faber £25. 780 pages 

is an original Interpretation in 
that it draws on the author’s 
own experience and interests, 
very different from those of 
MaCkafl and another outstand- 
ing biographer, E.P. Thomp- 
son. Her chapter headings 
reflect this. They are the 
names of places, not a 
sequence of events: Waltham- 
stow, Marlborough, Oxford 
and, of course, Red Lion 
Square and Red House, Kahns- 
cott Manor and Kelmscott 
House, and two countries, Ice- 
land and Norway, the former a 
country, both on the map and 
of the mind, which influenced 
him profoundly. 

Given Morris's own sense of 
place, Fiona MacCarthy’s mode 
of arrangement is entirely 
appropriate. And the different 
places she lists do not so much 
figure in a chronological* 
sequence as in an intricate pat- 
tern of desire a n d of memory. 
When Morris came to write 
News from Nowhere in 1890 the 
different strands in the pattern 
were woven together, and sig- 
nificantly there is as much tn 
it about the place as there is 
about time. 

Happily Fiona MacCarthy 


does not offer us a label for 
Morris to set alongside other 
biographers' Marxist Morris, 
Freudian Morris, Jungian Mor- 
ris, the entrepreneurial Morris 
or the Morris "who has now 
been appropriated by the 
Greens". She does rely on her 
intuitions, however, as well as 
research, and as a result deals 
particularly sensitively with 
Morris's relationships with 
Janey and Rossetti, and their 
own relationships with each 
other. A sense of place neces- 
sarily involves a sense of rela- 
tionships, and what Morris 
made of "fellowship”, which he 
believed was at the very heart 
of socialism, was derived not 
from books or pamphlets but 
from private relationships. 

The priest from a neighbour- 
ing parish who officiated at 
Morris’s funeral service at 
Kelmscott had teen with him 
both at Marlborough and at 
Exeter College, Oxford. He did 
not refer to Morris’s work for 
the socialist cause, much of It 
humdrum and hard, but chose 
as his text a passage from 
Corinthians, “unknown, and 
yet well-known”. 

In the 20th century Morris, 
remains “eminent” (he would 
have hated the adjective), both 
unknown and well-known, top- 
ical, not canonical. In his own 
century he was a pilgrim of 
hope, putting his trust, a 19th- 
century trust, in “how he 
might live", in society not as it 
was but in what it might be. 

He conceived of fear and 
hope as the great moving 
forces in history, and in the 
style of Corinthians believed 
that the greater of these was 
hope. In his poems “Pilgrims of 
Hope", printed in instalments 
in 1885, he wrote of “the day 
that yet shall be”. This was the 
same series in which “The 
Message of the March Wind" 
was written. Morris felt that he 
was no longer “the riddle 
singer of an empty day". He 
was an activist proclaiming a 
message that he believed 
would change history just as 
much as it had changed him- 
self. 




fast-forward 


A Bedouin busfcwssman runs his tour company Trom the Judean Desert: one of 200 photographs i 
Day in the Life of Israel” (Coffins £30, 224 pagesj By chance the day selected. May 5 1994, proved to be 1 
first day of official peace between the State of Israel and the Palestine liberation Organisation. 


A ccording to the ABC 
For Baby Patriots of 
1899, “C : is for Colo- 
nies/ Rightly we 
boasW That of all the great 
nations/ Great Britain has the 
most”; the infant who absorbed 
this in his nursery would soon 
graduate to the toy lead sol- 
diers which became a craze 
after 1890. 

But Lawrence James under- 
stands that there was another 
point to colonialism beyond 
and behind military conquest 
in Charles Dickens’ words, 
“The earth was made fbr Dom- 
bey and Son to trade in...” 

The British Empire was one 
of the fundamentals of the 
modern age and we, in our 
post-imperial decline, may still 
not be in the mood to acknowl- 
edge or understand its signifi- 
cance to our own society, let 
alone to the wider world. 
James here tackles a colossal - 
impossible - task with, an 
ambition betrayed in his GCb- 
ban-esqrue title, The Rise and 
Fall of the British Empire. He 
has bit ten off more than he (or 
you and I) can chew. 

We are conducted, briskly, 
from tbe Elizabethan sea-dogs 
to Rhodesia’s UDI and our 
imminent evacuation of Hong 
Kong: Out of these 400 years, it 
is true that the latter half of 
the book is given to this pres- 
ent century, but again and 
again the reader implores 
James - who has the style of 
the fluent and excellent history 
master which 1 suspect he used 
to be - to slow down, take his 
time and develop just a few 1 of 
his points. Or perhaps to ditch 
early Virginia, the Caribbean 
acquisitions and India and a 
test of other, no doubt fasci- 
nating topics, and focus on the 
decline of tbe Empire, which is 
the more interesting bit Or, 
best of all, to write two - - 
three? - books. 

Everything Is here, and that 
is the problem - the imperial 
drive of the Cromwellian years; 
the gunboat diplomacy of Pal- 
merston’s “unofficial empire”: 
the New Imperialism of the 
European powers just a cen- 
tury ago; Gladstone’s cam- 
paign against “Beaconsfield- 
ism"; the 1890s scramble for 
China; the constant and 
supreme importance of India 
both economically and mili- 


tarily; the Empire’s vital ecu* 
tribution to tbe first wqlid ■. 
war; the stagnation, sriobbay 
and racism of the years 
between the wars; the.mner- 
gence of America to; take-over . 
the defence of the British 
Empire; the optimism of the 
hand over to Commonwealth. 

. It must be evident that the 
canvas is impossibly wide. Too 
often James a stimulat- 
ing point (for instance. t&at ; by 
1942 the US had become 
Europe’s banker and armourer 
just like Britain in the Napo- 
leonic wars; that victory in the., 
p re-1914 naval race' between 
Kn gland and Germany . would 
go to the economically-strpn- 
ger, as in the recent US-Soviet 
Star Wars) and cannot allow 
hims elf to develop it. Some- . 
times he misfires: the Cold. 
War is not helpfully compared 

THE RISE AND FALL 
OF THE BRITISH 

EMPIRE 

by Lawrence James 

■_ - Chile. Brown £25, 704 pages - ■ 

with the Great Game oyer 
hufia, for example; and Mount- 
batten's promotion was not the 
result of rauiirhfir s search for 
another T.E. Lawrence! The 
more important criticism is 
that Britain's imperial decline 
demands a more sustained 
analysis than the fleeting refer- 
ences we get here to thd diffi- 
culties of becoming a “second 
fiddle”. 

The Rise and Fall of the Brit- 
ish Empire justifies a (thick) 
space on your shelves not for 
any revelatory brilliance or lit- 
erary elegance so much as for 
its value as a quid aide mbm- 
mre: if you have temporarily 
forgotten the essence of the 
Com Laws debate, or the occa- 
sion for the Crimean War, or 
the role of aerial bombing of 
the Sudan in the 1920s, then 
here is a valuable reference 
point Beyond that, the reason- 
ably wen-informed reader will 
feel rather as you do after (tip- 
ping into an American news 
magazine: it is all perfectly 
convincing until you come to a 
subject which you know about 
- and then it and therefore the 
rest really will not do. 

J.D.F. Jones 


T his is a powerful, commit- 
ted and well-written book 
with a problematic theme. 
Gatrell drives home the 
horrors of hang in g and then seeks 
to explain the process by which 
hanging from the 1830s was con- 
fined to murderers and from 1868 
was no longer carried out in public. 

This is not seen as a triumph for 
humane sensibility or reform, both 
of which are presented as having 
serious limits, but rather as a shift 
in the balance of terror by which 
control was imposed. For Gatrell, 
“the abolition of public execution 
spoke for anxiety, not compla- 
cency". 

Tbe poor, still voteless after the 
1867 reform act, excited the con- 
cern, even fear, of the elite, and 
hidden executions were seen as a 
more effective form of control. The 
elite was also concerned both about 
the responses of scaffold crowds, 
and about the extent to which pub- 
lic executions allowed both criminal 
and crowd to deride or criticise the 
nature of justice. 

Gatrell claims that the abolition 
of public punishment undercut 
those who pressed for total aboli- 
tion and greatly delayed their 
cause. For Gatrell “the state’s 
retributive power continued to over- 
ride imaginative compassion, and 
the horror continued behind prison 
walls for a century yet". 

There is no doubt of where 
Gatrell 's sympathies lie: of the 
judges, "one or two like Dudley 
Ryder [Chief Justice of King’s 


Final drop for 
the scaffold 

Jeremy Black on the history behind 
the abolition of public execution 


Bench] wept fashionably" as they 
sent young women to the gallows 
and subsequent dissection. After 
nudging a reluctant jury in 1754 to 
convict a possibly insane young 
woman of infanticide and then, 
“very well satisfied”, condemning 

THE HANGING TREE: 

EXECUTION AND THE 
ENGLISH PEOPLE 1770-1868 
by V.A.C. Gatrell 

Oxford University Press £20. 

654 pages 

her to the noose and the anatomist, 
Ryder made a speech which “so 
affected" him, he told his diary, 
“that the tears were gashing out". 

Sir John Silvester, Recorder of 
London 1803-22, propositioned 
women who sought mercy for their 
relatives. There is an excellent dis- 
cussion of the handling of appeals 
by the Home Secretary: Peel 
emerges as a determined hanger, 
who eased and encouraged prosecu- 
tions. He believed that society could 


survive in turbulent times only if 
secular authority was resolutely 
defended. 

The case is strongly argued. This 
is not the law as a consensual sys- 
tem for eliciting support for the 
norms of authority, but a cruel, cal- 
lous. calculating and vicious denial 
of justice. 

Many will find this a convincing 
analysis, but doubts can be 
expressed- Without making any ref- 
erence to the modern debate on cap- 
ital punishment, it can be argued 
that Gatrell displays all too little 
sympathy both for the victims of 
murder and for the problems cre- 
ated by social change. There was 
major change tn the 19th century, 
necessarily as both cause and con- 
sequence of a society with a mass 
electorate, universal education, and 
widespread urbanisation and indus- 
trialisation. These brought social 
dislocation, instability and fears. 

Deference and traditional social 
patterns, never as fixed as some 
thought, ebbed, and the new and 
newly expanded cities and towns 


created new living environments in 
which the role and rule of the old 
world were far less significant. 

These problems clearly do not 
excite Ga trail's sympathetic atten- 
tion; indeed his essential outsider’s 
approach, which provides much of 
the passion of the book, is also one 
of his limitations. The views of the 
scaffold crowd are analysed, but 
there is insufficient attention to 
legal and governmental policies and 
strategies. 

Cruelty again is a complex issue. 
A society that was willing to send 
its men to kill and be killed across 
tbe face of the globe, that in 1878 
applauded the “Great Macdermott" 
as his music-hall song launched jin- 
goism, may have had a different 
emphasis than Gatrell suggests. 

He is understandably repelled by 
the practice and details of 19th-cen- 
tury executions, but to this 
reviewer much of his fascinating 
book was more redolent of the 1960s 
than of the Victorian era. The dis- 
cussion of the manner in which 
many sought to disguise the reality 
of what was going on is compelling 
as is the brutality of many of the 
case studies, but it is far from clear 
that most of the population had any 
real sympathy with murderers or 
regretted their fate. Yet, this is a 
continually interesting book, by the 
standards of modem scholarly pub- 
lishing excellent value for money, 
and a study that ably bridges mod- 
em and historical concerns. 

■ Jeremy Black is a Professor of 
History at the University of Durham. 


Passion with artifice 

Douglas Dunn discusses Ovid’s challenge to modem poets 


F ew books amount to a 
"myth kitty" (Larkin's 
famous abhorrence) as con- 
vincingly as Ovid's Mela- 
morphoscs. Stories like those of 
Venus and Adonis, Pyramus and 
Thisbe, Baucis and Philemon, and 
Orpheus and Eurydice - paired off 
like names on ancient windscreens 
- are close to the heart of European 
culture. Painting, sculpture, opera, 
drama, poetry - what would they 
have done without Ovid's telling of 
these tales? 

Improved no end, Larkin might 
have said. Can you Imagine him, or 
Amis, getting stuck in to Ovid? It 
shows tew poetry has changed. No 
one today, I think, would claim that 
Ovi dian meaning and mastery are 
as important to us as they were to 
Shakespeare, or Ovid’s great Eliza- 
bethan translator, Golding. The 
affection, belief, technique, and 
sheer energy responsible far a work 
like Golding’s can be found singly 
but not all together. The you-do- 
this-bit ril-do-that procedure of 
After Ooid seems predictably of our 
time, as does A J). Melville's worthy 
but regressive blank verse effort in 
translating the whole poem a few 
years ago. This is some of the whole 
poem gone over by many hands, 
some of them short on latinity. 


Ovid is an amazingly resourceful 
and tireless poet In showing how 
these 42 poets rise to the challenge 
the book offers a fascinating sam- 
pler of contemporary styles and 
local solutions. Ted Hughes, for 
example, who contributes more to 
the book than anyone else, uses a 
choric free verse in his version of 
Ovid's account of Creation. In 
“Venus and Adonis" he employs 
unrhymed stanzas, mainly of three 
and five lines. Readers of Hughes's 

AFTER OVID: NEW 
METAMORPHOSES 
edited by Michael Hofmann 
and Janies Lasdun 

Faber A Faber £14.99, 320 pages 

book on Shakespeare will know 
how important this story is to his 
interpretation of the plays and 
poems. It is apt that the most 
Shakespearean of contemporary 
poets should translate a story told 
by Shakespeare. It is also pleasant 
to report that this is Hughes’s best 
work for some time. 

Surprisingly, Seamus Heaney 
chooses pentameter couplets in 
writing about Orpheus. However, 
the lines run on through approxi- 
mate rhymes so that the effect is far 


closer to what readers expect, of 
Heaney than John Dryden. Still, it 
is not quite sparky enoug h far Ovid. 
Quicker tetrameter couplets :£rom 
Derek Mahon (“Pygmalion awfl Gal- 
atea”) seem a touch more Ovidian, 
as do Paul Muldoon’s lines of differ- 
ent lengths, also rhyming in cou- 
plets. The New York poet, Kenneth 
Koch, goes for broke: Look at this 
lovely river maid, who beare the 
name of Io/ Her youthful beauty 
caused in Jove such ache that “Me. 
oh! my, oh?”/ He cried, “She must 
be mine!" ... 

Peter Reading and some others 
are more classically astute, in Read- 
ing's case with the sound of dactyls 
~ 311 echo of Ovid him bp if Soxne.of 
the poets seize a lyrical moment or 
passage rather than a longer haul of 
narrative. In “Mrs Midas”, Carol 
Ann Duffy is as inventive as Ovid 
in whose Metamorphoses Midas’s 
jueen do« not appear. But Ovid, 
foe poet of transformations, of one 
form cha n gi n g into another, sane-' 
nons just about any poetic liberty 
name. His great poem is 
a wonder-book of passion as well as 
of artifice. Engaging 
^Metamorphoses hasted 

e? - th 5^ est 1,0648 now writing 
to sprightly and delightful ' 
responses. ^ 


I /,/ u’/Zi/c’/'J are like perfect Eng lie h eiinvnere. B Its short breaks are ideal for Christmas and New Year 





FINANCIAL TIMES WEEKEND NOVEMBER 26/NOVEMBER 27 1994 


WEEKEND FT NX! 




s.i<: ‘Os -i 

-<S- -| *5li 


BOOKS 


• r "’ 5 '4 1 0 . 


. "*'* V 

■iw *■ 


aire 


artitict, 


What Popper 
never said 

A-C.Grayling assesses a misunderstood philosopher 


I t was characteristic of 
Karl Popper that when 
he died two months ago 
he had Just finished 
another two boohs. With 
his death the last of this centu- 
ry’s great British philosophical 
triumvirate - Russell. Wittgen- 
stein and Popper himself - 
passed away. Comparison- 
drawers like to say that he 
was, by quite a margin, less 
clever than Russell and less 
imaginative than Wittgenstein. 
Yet of the three he is easily the 
most influential outside aca- 
demic circles. That influence 
e x t e n ds In two important direc- 
tions: science and politics. 

Surprisingly, many scientists 
claim that Popper's views ben- 
efited their work. An outstand- 
ing example is Sir John Eccles. 
the Nobel-winning physiologist 
who later collaborated with 
Popper on a book about the 
mind-brain link. Like other sci- 
entists, he points to Popper’s 
account of scientific method, 
the famous doctrine of “falsifi- 
cationism”. as his inspiration. 

Popper was an intellectually 
robust and confident thinker. 
The reasons lie partly in his 
origins. He was born into a 
wealthy and cultured Viennese 
family . He was a distant rela- 
tive of Freud and in early adult 
hfe friendly with, although not 
a member of, the famous 
Vienna Circle of philosophers. 
He left Austria because of 
Nazism and lived, first in New 
Zealand and then, for the rest 
of his long life, in England, 
where he taught at the London 
School of Economics. He died 
aged 92. 

Success came late, in his for- 
ties; but once it had arrived he 
was ffeted everywhere. Popper 
was indefatigable. In his last 
months he was busy preparing 
these two books for the press. 
One of them continues his life- 
long dedication to defending 
science and rational criticism 
as “a way of thinking and liv- 
ing”. In it he gives a statement 
of his “confession of faith in 
peace, in humanity, in toler- 
ance. in modesty, in trying to 
learn from one’s own mistakes; 
and in the possibilities of criti- 
cal discussion.” The second 
book consists of lectures 
dpfp.nding the hi g hl y unfash- 
ionable “dualist" view that 
min d and body are separate 
but interacting entities. Both 
books are characteristically 
Popperian: argumentative, 
opinionated, conciliatory, 
emphatic, outdated, up-to-date, 
interesting, and full both of 


H e is the famous poet 
who never used 
capital letters. In 
England, we know a 
few sexy verses by “e e cum- 
mings” (“Hay 1 feel, said he/ 
Til squeal, said she,") because 
they stand out as eccentric in 
anthologies of love poems. In 
America, by contrast, Cum- 
mings Is a literary giant When 
he died in 1962, be was the 
most widely-read poet after 
Robert Frost; today he is seen 
with Eliot and Pound as the 
father of modernism. 

Was C umming s a genius, the 
inventor of a new form of 
expression which spoke for our 
disordered, fragmented times? 
Or was be merely a gimmick- 
maker who tinkered with 
typography? This beautifully 
produced volume, published to 
mark the centenary of his birth 
last month, collects together 
all his poems for the first time, 
and offers a new insight into 
the man and his work. 

Pew poets are at once so 
modest - Cummings always 
hid behind that lower case 
anonymous i - and so exuber- 
-ujt and charismatic in their 
egoism: “Cheri" he says in a 
1018 love poem which was not 
discovered until the 1980s “the, 
very picturesque, last Day/ 


holes and very bright ideas. 
One might not agree with 
everything in Popper, but he 
always makes stimulating 
reading. 

The judgments about Popper 
of both scientists and right- 
wingers - many of whom lay 
claim to him hecan.se of his 
attack on Marxism and his 
defence of “the open society" - 
are mistaken. Popper did not 
succeed in formulating a 
watertight account of scientific 
method, and he did not hold or 
promote right-wing views. But 
it is easy to see why people 
thought he had done both: he 
was tireless in explaining his 
ideas to a wide public, rightly 
refusing to confine hims elf to 
the academic world. 

But his wider audience has 
not heard the careful response 
of academia to his views, and 
therefore knows only one side 
of the story. 

THE MYTH OF THE 
FRAMEWORK 

by Karl R. Popper 

Rouikilge £25. 229 pages 

KNOWLEDGE AND THE 
MIND-BODY PROBLEM 
by Karl R. Popper 

Routleiige £20. 158 pages 

Popper’s theories about sci- 
ence are based on a strikingly 
simple insight Scientific inves- 
tigation, he noted, was thought 
to go as follows: an hypothesis 
is formulated, and predictions 
are made about what if the 
hypothesis is true, should hap- 
pen when experiments are con- 
ducted. 

The hypothesis is confirmed 
if the results are as predicted: 
the greater the number of posi- 
tive results, the more securely 
is it confirmed. But Popper saw 
that a single negative result 
can overthrow an hypothesis. 
Any number of positive results 
might accumulate in its sup- 
port while it yet remains vul- 
nerable to a counter-instance. 
A hypothesis therefore cannot 
be proved, he argued; the best 
we can ever say is that it is 
“acceptable so far”, but that 
someone may sometime come 
up with a single piece of evi- 
dence that disproves it 
Science accordingly prog- 
resses by “conjecture mid refu- 
tation”. Popper believed his fal- 
sificationist theory achieved 
two things at the same time. 
First, it provided a test of what 
counts as a genuinely scientific 


hypothesis. Second, it solved 
the thorny old "problem of 
induction”. An example of 
inductive reasoning is: "Every 
swan 1 have seen is white, so 
all swans must be white.” The 
problem is; how can one be 
sure? 

On the first question. Popper 
said that if an hypothesis can- 
not be proved wrong, it is not 
only unscientific, but worth- 
less: “a theory which explains 
everything explains nothing”. 
Astrology, psychoanalysis and 
religion all fall into this cate- 
gory, because none of them 
states what evidence would 
prove its claims to be false. If 
astrology, for example, can 
accommodate any proffered 
counter-example it is untesta- 
ble and therefore vacuous. 
Thus Popper’s falsification cri- 
terion distinguishes between 
genuine enquiry and nonsense. 

Marxism is a different mat- 
ter. It claims to be scientific, 
and it makes specific and 
therefore testable predictions. 
The problem with Marxism is 
that it has failed those tests: 
history has shown it to be 
false. Yet despite this. Popper 
points out, its adherents con- 
tinue to believe it 

Popper argued that science 
does not, as philosophers used 
to believe, consist in the pro- 
cess of supporting a general 
proposition by accumulating 
instances. Such inferences are 
notoriously upsettable, and 
there are no watertight means 
of justifying them. The old 
view of scientific procedure, 
confirming hypotheses by posi- 
tive tests, portrays science as 
inductive. 

Popper’s c->a»m . by contrast, 
is that science is deductive. 
Inductive inference would be 
all right if we could rely on the 
“principle of the uniformity of 
nature”, which states that the 
world works in regular and 
patterned ways. Such a princi- 
ple would allow us to predict 
that the future will resemble 
the past But the principle can 
itself only be justified induc- 
tively (“past futures resembled 
past pasts”). We cannot be sure 
that this will always be the 
case. 

Popper therefore wished to 
reject induction. Unfortu- 
nately, his view covertly 
appeals to the principle of 
nature’s uniformity also, for 
counter-instances can be taken 
to refute hypotheses only if we 
can be sure that the world will 
not change tomorrow in a way 
that makes the hypotheses 




'■vf' > 






ill A 




IS x) 




Snow fanned trees in YosemHa National Park, California: one of John Sexton’s haunting photographs reproduced in Listen to die Trees (Bulfinch 
Prass/Lfttte, Brown $45, 91 pages). Sexton is a master prbitmaker, lecturer and former photographi c assistant to Ansel Adams. Stewart L Udail, 
the conservationist and former US secretary of the interior, has written “A celebration of trees”, the book’s introduction. 


suddenly true, thus falsifying 
the counter-instances them- 
selves. 

It might seem obvious that a 
piece of evidence which dis- 
proves an hypothesis may be 
used in exactly the same way 
to support the opposite hypoth- 
esis, namely the original propo- 
sition was false: but in the lat- 
ter case the evidence is 
obviously being employed in 
the way Popper contests, that 
is, inductively. 


There are many other diffi- 
culties with Popper’s views. He 
did not manage to state con- 
vincing theses about truth and 
the nature of reality; he 
refused to investigate how sci- 
entific hypotheses come to be 
formulated in the first place; 
and he did not provide an 
account of scientific reasoning 
which makes use of models 
and analogies, investigative 
tools much discussed by other 
philosophers of science. 


Popper’s politics have fared 
better at the hands of his crit- 
ics. It is clear that those who 
claim him for the Right have 
not read his work. He used to 
say that he would call himself 
a socialist if socialism would 
seriously commit itself to indi- 
vidual liberty. 

For Popper, the “open soci- 
ety” is one in which rational 
discussion leads to fair, decent, 
open and consensual political 
arrangements and in which 


quiet assessment of the facts 
informs every decision. His 
Open Society and fts Enemies 
not only attacked Marx, It also 
attacked Plato. The authoritar- 
ian state of Plato's Republic, 
ruled by an oligarchy, relying 
on slavery, practising eugenics, 
disenfranchising women and 
most classes, has had its clos- 
est expression in recent Fascist 
dictatorships. Popper attacked 
excesses on both the left and 
right 


Charismatic wordsmith 

Jackie Wullschlager probes beyond the poet's pyrotechnics 


(when all the clocks have lost 
their jobs and god/sits up 
quickly to judge the Big Sin- 
ners)/ he will have something 
large and fluffy to say/to me)”. 

Throughout his life. Cum- 
mings pitted himself against 
god and the devil, US presi- 
dents - he called Roosvelt that 
great pink super mediocrity - 
big business and the upper 
class East Coast society into 
which he was bom. His father 
was a Harvard professor and a 
close friend of William James; 
C ummin gs wrote about the 
Boston Brahmin Circle as “the 
Cambridge ladies who live in 
furnished souls.” But he 
altered his parents and an idyl- 
iically happy upbringing gave 
him both his passionate belief 
in the individual and the confi- 
dence to ignore traditional 
American expectation of patri- 
otism and conformity. A large 
body of poems about his child- 
hood when “The world is pud- 
dled wonderful,” Is one of the 
revelations here. 

As a pacifist, Cummings 


went to France as an ambu- 
lance driver in 1917 and was 
promptly jailed for ignoring 
censorship rules in his letters 
home. After the war he stayed 
on in Paris, discovered Picasso 
and Stravinsky, and returned 
to America a modernist, con- 
vinced that the “day of the spo- 
ken lyric is past” He began to 
apply the Cubist methods of 
break-up and restructuring to 
poetry. 

The pleasure of this fat com- 
plete edition is that in making 
us quickly familiar which such 
surface pyrotechnics, it gives 
us the chance to notice the 
deeper, less showy side of the 
poet. Despite his protests, 
Cummings was a bred-in-the- 
bone lyricist and, in displaying 
the full range of his love 
poetry, this volume establishes 
him as the most erotic English 
poet since John Donne. 

During his Paris days, he 
became the friend - though 
not the client - of some prosti- 
tutes. He enjoyed using the 
high sonnet form to describe 


N ubia played Professor 
Longhair and Big Mama 
Thornton to Egypt's 
Elvis: who else but Tom 
Bobbins could the mingtog ot 

“Sent civilisations m su£bj 
ninth his second novel, Even Cow- 
Sfc Get the Blues, Bobbins P«*cted 


E.E. CUM MINGS: 
COMPLETE POEMS 
edited by George J. 
Firmage 

Norton £35. 1 102 pages 

bawdy low life, “the dirty col- 
ours of her kiss.” Then in the 
1920s and 30s, Cummings, 
according to his biographer 
Richard Kennedy, married in 
quick succession “three of the 
most beautiful women in 
America," including actress 
and model Marian Moorhouse. 

Like Donne, Cummings 
makes sensuality work on the 
page by a mix of dazzling 
explicitness and absolute rig- 
our of form. He sees that sex is 
half in the head, and he is 
metaphysical (“oue not half 
too. It’s two are halves of one”) 
and agonisingly restrained (“O 
Distinct/lady of my unkempt 
adoration”). He is also, like 
Donne, witty and obscene. In 
the poem “she being Brand/ 
New; and you/know conse- 


Fiction 


quentiy A/tittle stiff” he 
describes sex as a run in a new 
car. “Just as we turn the cor- 
ner of Divmity/A venue i touch 
the accelerator and give/her 
the juice, good.” 

Offbeat and experimental, 
Cummings had the outsider's 
uncanny feel for the mood of 
the nation and an appealingly 
American idiom - upbeat and 
zany - with which to convey 
it. The girl /car piece laughed at 
the American male's obsession 
with the automobile as early as 
the 1920s. The lines “what if a 
much of a which of a wind ” 
with the warning “what if a 
dawn of a doom of a dream/ 
bites this universe in two,” 
were written in 1944 the first 
poem of the Cold War. 

Almost every Cummings 
poem is enormous fun. With 
his jokes and word games be 
reflects everyday fears, hopes 
and madnesses back at us 
through a distracting cheerful 
mirror. His gimmicks are part 
of his genius: this magnificent 
volume is a tribute to both. 



E E Cummings: genius or mere genmick-maker? 


Strange worlds and wise outlaws 


his technique of audacious pi 

015 fhamps pn rning himself a 

(Bantam £6-99, 386 pages). 

Srts su =P l . cl ^ » Jne ySid 


occupied with thoughts of bulls and 
bears, however, but with frogs, an 
escaped monkey with a taste for bur- 
glary, magic mushrooms from outer 
space, a cure for cancer and the 
future of the human race as well as 
romance with the staple Robbins fig- 
ure, the wise-cracking outlaw, bearer 
of both fun and enlightenment. 

“Mist from the sea covers the hill 
where a small army lies surrounded 
by a laige.” Hie Ettrick clan is about 
to he massacred by the Northumbri- 


ans. This is the splendid opening of 
Alasdair Gray’s A History Maker 
(Canongate £13.99, 222 pages), set not 
in a border war of the past, but in 
the 23rd century where warfare has 
become a spectator sport and a 
league table. There are pre-slaughter 
interviews with the generals and 
running commentary as the Ettrick 
clan is almost wiped out, all accord 
mg to the Geneva Conventions. 

The first chapter is the strongest: 
the rest lacks narrative thrust. 


(though not pelvic thrusts), being a 
semi-satirical essay on how life 
should be lived. As with all Gray’s 
work, layout and illustrations are as 
important as the writing. A worthy 
successor to Poor Things, and ample 
evidence that Scotsmen can write 
without obsessive use of four letter 
expletives. 

A fan of Alasdair Gray and, like 
him, someone who builds his work 
around quirky conceits is Will Self. 
His new collection of short stories. 


Grey Area (Bloomsbury £9.99, 287 
pages), explores strange worlds 
which have mutated out of our own. 

"There are only eight people in 
London and fortunately I am one of 
them.” is the start of the first story, 
concerned with the gruelling life of 
the puppet-masters or the metropo- 
lis: “only 210,542 invitations to meals 
of any sort fast year - and of those a 
good 40,000 were children’s parties." 
A demon lover, a model village, and 
office paraphernalia are other 


springboards for Selfs bizarre flights 
of fancy, but the best piece has to be 
about Inclusion, a drug that makes 
watching television fascinating. 

Finally, the past. Didier Daen- 
lnckx's A Very Profitable War (Ser- 
pent's Tail £7.99, 192 pages) features 
Ren§ Griffon, a demobbed sleuth in 
Paris after the first world war who is 
hired by a distinguished Colonel to 
track down someone trying to black- 
mail him. Daeninckx is one of 
France’s leading thriller writers, but 
A Very Profitable War is one for sene 
noire aficionados. The most satisfy- 
ing sections of the book are the his- 
torical curiosities: the Colonel, for 
instance, has to put down a mutiny 
of Russian soldiers in France. 


Tibor Fischer 


Pre-war 

village 

fantasy 

E dward Upward, alert 
and active at the age 
of 91, was in London 
recently. He and his 
wife attended a reception at 
the British Library given to 
honour the publication of these 
three books. The library has an 
Upward archive from which a 
selection of manuscripts was 
on show. These included the 
Mortmere stories begun by 
Upward and his friend Christo- 
pher Isherwood when they 
were Cambridge undergradu- 
ates in the 1920s. 

In his autobiographical Lions 
and Shadows, Isherwood 
described how they invented 
the sleepy English village of 
Mortmere, peopled with eccen- 
tric local characters whose 
activities were chronicled in a 
style that was a cross between 
Conan Doyle and surrealist 
fantasy. Mortmere s umme d up 
the charming, well-bred com- 
placency and eccentricity of 
pre-war England. Up to now 
the tales were considered too 
private to be published, but at 

THE MORTMERE 
STORIES 
by Christopher 
Isherwood and Edward 
l/pward 

Eniihormon £7.99. 206 pages 

AN UNMENTIONABLE 
MAN 

by Edward Upward 

Enirharmon £5.99. 102 pages 

JOURNEY TO THE 
BORDER 

by Edward Upward 

Emtharmon £5.99. 1 35 pages 

last curiosity has been satisfied 
and we have the texts of the 
surviving manuscripts, edited 
by Katherine Bucknall. The 
bulk of them are by Isherwood. 
The humour is often lavatorial, 
but the writing is brilliantly 
readable in the hilar ious man- 
ner of the young pre-Buddhist, 
pre-Californian I-Am-a -Camera 
Christopher. 

After Cambridge, Upward 
became a schoolmaster and a 
member of the British Commu- 
nist Party, from which he 
resigned in 1948. He was house- 
master and head of English at 
Alleyn’s School, Dulwich, from 
1931 to 1961. After retirement 
he went to live on the Isle or 
Wight where he resumed his 
earlier career of novelist 
I fis first book. Journey to the 
Border, was published by the 
Woolfs in 1938. It now appears 
in a revised edition. A tutor 
goes with his pupil and 
employer to a race meeting at 
a Mortmere- Lsh country town. 
While entering a crowded mar- 
quee he has a vision of the 
future. More than half a cen- 
tury has done nothing to 
diminish the work's sense of 
foreboding. Gentlemanly 
tweed-suited English racegoers 
become a gathering of militant 
fascists. A long speech by an 
apologist for obeying natural 
instinct parodies Auden's early 
guru, Homer Lane. Much of it 
seems as relevant now as then. 

Upward's major work. The 
Spiral Ascent, a trilogy written 
over two decades and pub- 
lished in one-volume in 1977, 
describes the fortunes of a poet 
and schoolmaster who is a 
committed Marxist. It is a view 
of intellectual life from 
Upward’s left-wing stance that 
is both calmly detached and 
highly personal; so too is the 
sequence of stories now pub- 
lished for the first time in An 
Unmentionable Man. 

The man is an elderly 
English writer whose name is 
never mentioned because he 
believes we are witnessing the 
death-throes of capitalist soci- 
ety. He has been mugged, and 
while his wife awaits his 
return to consciousness he has 
nightmares described with 
marvellous clarity In which his 
credo comes under attack. As a 
writer of English prose Upward 
belongs to the school of Swift 
and OrwelL Now that I have 
read again these remarkable 
books I feel that Upward's 
work is going to be mentioned 
more and more frequently by 
discerning judges of 20th cen- 
tury literature in the years to 
come. 

Anthony Curds 


NEW AUTHORS 


ALL SUBJECTS CONSIDERED 
Flcfloa non fldfcm. Biography, 
ReCgk&o. Poetry, Ctridrens 
AUTHORS WORLD-WIDE INVITED 
WWTE OR SEND YOUR MANUSCBPT TO 






XXII WEEKEND FT 




ARTS 


Sea- shore 


beasts and 


graffiti 


William Packer reviews the recent 
work of artists David Hepher, John 
Bellany and Ian Tyson 


W hile it might 
be argued that 
we have seen, 
and heard, 
more than 
enough of one of the painters 
currently filling the vasty halls 
of Flowers East, we have cer- 
tainly seen Ear too little of the 
other two. What Is no less cer- 
tain is that all three of them, 
on this evidence, are working 
through into their later matu- 
rity at the top of their form. 

Of the two figurative paint- 
ers, David Hepher is the more 
sombre in his visual material, 
the more self-effacing and 
unshowy in his actual working 
of paint and surface, and the 
more obviously thoughtful in 
his engagement with subject 
and ideas. His work is none the 
less in teresting or beautiful for 
that. 

His subject is the tower 
block of the council estate, 
dread image of the social engi- 
neering of the 1960s, 
high-minded, insensitive and 
misconceived. He has been 
painting these tilings over 
many years, taking them as 
they are and moving in dose to 
their densely regular fronts of 
balconies and window-frames, 
un inflected but by the vagaries 
of human use and habitation, 
marked by plants and curtains 
and the washing hung out to 
dry. 


This interest continues here 
in some small studies, freely 
and freshly stated. But for the 
most part, and in all the larger 
canvases on show, he has 
moved into something that is 
both visually and conceptually 
more complicated. 

He now lays upon the canvas 
a ground the colour and tex- 
ture of concrete, complete with 
the marks and ridges of the 
defining shuttering by which 
the tower-blocks themselves 
were built Upon this prepared 
surface he paints the image of 
the tower,' but not so as to fill 
the canvas entirely. This 
image, conventionally pictorial 
in its own terms, is but a for- 
mal rfwnpnt a gainst which Oth- 
ers are brought into play - 
child-like structures, images of 
cities taken from the painting 
of the early renaissance, and, 
overlaying everything, the 
familiar , mwaninglass calligra- 
phy of sprayed graffiti. 

Here, then, are paintings 
that start as the samo blank 
walls, luring the painter to 
them as they lure the graffitist 
But oh, how elegant the paint- 
er’s own graffiti are. and how 
ironically light and sensitive 
his touch. Would that all graf- 
fiti were so beautiful This is 
painting of a high order, full of 
Subtlety and ambig uity 

John Bellany is the other fig- 
urative painter and, by con- 



o.. "I- 


Back to Ms oM, ebuSent expressionist self: ‘Bounteous Sea' by John Bellany 


trast, nothing less than his old 
ebullient expressionist self. 
The wonder of it is. given his 
publicly-acknowledged medical 
history, that he can still paint 
at all let alone on such a scale 
and with such energy and pas- 
sion. But he was ever an obses- 
sive in the actual act of paint- 
ing, as furiously prolific even 
in the depths of his most des- 
perate alcoholism. 

In his case, both illness and 
recovery affected the work 
clearly and directly and, in a 
sense, perversely. For through 
the late 1970s and into the 80s. 
as his condition grew ever 
more dire, so his painting took 
on a quality of tragic grandeur. 


with the paint growing ever 
richer and more physical in the 
working, the imagery seeming 
to sink into the surface as into 
a quicksand, abstracted and 
ambiguous, not waving but 
drowning. It was profound and 
powerful stuff. 

[f with recovery the mood 
lightened and the imagery 
cleared, so also for a while did 
the surface become thin and 
the statement overstretched 
and enfeebled - for Bellany 
□ever gave up in his determi- 
nation to go on working on the 
grandest scale. Now the work 
has again come to itself. Gone 
is the self-regarding and senti- 
mental imagery of the period 


of the immediate convales- 
cence, and we are back with 
the full complement of crabs 
and fish, birds and beasts, the 
bearded fisher-artists in their 
boats and bare-breasted priest- 
women in their stocking-tops 
that people Bellany’s own sym- 
bolic sea-shore world. 

There they all are, these 
monumental figures, with their 
hints at Beckmann, Picasso 
and Modigliani. And there too. 
as it were to set off their all- 
pervading air of classical calm, 
are passages of the old expres- 
sionist fury in the working of 
the surface, judicious and con- 
trolled yet full of painting, 
proper p ainting . 


The smallest of the galleries 
is occupied by lan Tyson, that 
most fagHrfinna of minimalists, 
who is showing paintings and 
relief constructions based upon 
a simple rectangular, frame- 
tike motif. That I have no 
space to say more about them 
is not to say I do not recom- 
mend them. Indeed, they come 
as the perfect sorbet after the 
richer dishes downstairs. 


David Hepher: new paintings. 
John Bellany: recent paint- 
ings. Ian Tyson: recent paint- 
ing and sculpture. All at Flow- 
ers East, 199 & 282 Richmond 
Road, Hackney, London E8, 
until December 4. 


A side from its obvious 
functions as babysit- 
ter to the nation and 
chewing gum for the 
eyes, television, it becomes 
increasingly clear, is a remark- 
ably good purveyor of history. 
We know from the work of 


Television / Christopher Dunkley 


History brought home 


Nonna Percy, who has made 
memorable programmes about 
the Reykjavik arms talks and 
the collapse of Soviet commu- 
nism, and from David Ash's 
programmes Fall Of The Wall 
on BBC2 earlier this month, 
that it is particularly effective 
with very recent history. 

We know from Steve Humph- 
ries’ startling 1991 series A 


Secret World Of Sex and from 
his current Thursday night 
series on BBC2, Forbidden 
Britain, both dealing with the 
early decades of this century, 
that, even when there is 
awfully little archive film 
available (as with any social 
subject around 1900) impres- 
sive programmes can still be 
made. Following the classic 


example of The World At War, 
Humphries marries together 
what picture material he can 
find with latter-day interviews 
with those who can remember 
the period. The results can be 
pn thralling ! y evocative. 

But among the most fascinat- 
ing periods for any of us, 
surely, is the one that coin- 
cides with our birth, so those 


When it comes 
— tofinance, - 
mus icians 

don’talways 

~ know 

the score. 


Professional musicians often 
endure financial hardship without 
realising that help is at hand through 
the Musicians Benevolent Fund. 

Lauretta, now in her seventies, was 
a top variety artist till she contracted 
a serious bone disease. She spent 
years struggling alone. When we 
heard of her plight, we offered 
practical help which ranged from 
tuning her piano to providing a 
much-needed holiday. 

Every year we spend over 


£1 million supporting hundreds of 
professional musicians of all ages, 
whose repertoires range from Bach to 
Bacharach. 

We rely on The Friends of the 
Musicians Benevolent Fund to help 
make this possible. To join the Friends 
takes just £15, a postage stamp and a 


love of music. 


MUSICIANS 


BENEVOLENT FUND 

Patron: HM The Queen 


D I wish to join the Friends of the MBF and enclose my subscription of £15. 

1 look forward to receiving my membership pack which includes the newsletter, 'Scherzo 1 . 

D 1 enclose a donation of £15 Other amount £ 

D 1 wish to pay by CAF Charity Card number „ 

Signature Date 


Address 


Postcode 


Tel 


in their late 40s or early 50s 
may be particularly drawn to 
What Has Become Of Us? which 
covers the middle of the 20th 
century and begins on Channel 
4 tomorrow evening. Presenter 
Peter Hennessy and producer 
Rob Shepherd have made a 
four-part series investigating 
the attitudes and politics and, 
most important of all the feel- 
ings which, in the 1940s and 
1950s, led to the creation of a 
British society which was then 
methodically dismantled in the 
1980s and 90s. 

This opening programme 
shows that however talented 
the presenter (and Hennessy 
has proved himself an excel- 
lent television performer, espe- 
cially in studio discussions) 
nothing conveys the spirit of a 
time so vividly as a combina- 
tion of personal witness and 
contemporary archive. When 
Hennessy encapsulates the 
swing to Labour in 1945 by say- 
ing that the bombs had not dis- 
criminated between the classes 
so why should politics, it 
seems trite. But when those 
who lived through the war talk 
about the sense of levelling 
which arose from such matters 
as the shared experience of 
rationing it seems all too credi- 
ble. 

The sense of how it felt to be 
Uving through that war comes 
across most strongly from 
some of Hennessy's older 
neighbours in Walthamstow. 
Charmingly - and sensibly, 
given that he was bom in 1947 
- Hennessy goes back to them 
repeatedly to check on their 
memories. Like my father who, 
one night in 1941, ran to the 
top of Parliament Hill to gaze, 
mesmerised, at what appeared 
to be the entire London docks 
on fire, Marie Creighton 
describes going up to a high 
point to watch the blitz: ‘There 
was ships in there and our 
grub was in ’em*. 

The idealism fired by the 
national experience of the war 
strikes you like a Hash of light- 
mug when Jill Craigie shows 
the opening caption on a film 
about new towns such as Ste- 
venage made in the late 1940s 
saying “This film is made for 

the peoples of the blitz in the 
hope that their newly built 
cities will be worthy of their 
fortitude". It is an indication of 


the degree of cynicism today 
that such a high moral tone 
now seems almost comical. 

Yet such sentiments seemed 
unremarkable in 1948 because, 
as Lord Hails ham points out in 
next week's programme, "We 
had ended the war at the top of 
the world". The dismantling of 
the empire had scarcely begun 


and it seemed only right that 
the top nation should, set about 
creating a brave new world 
with a national health service, 
nationalised industries, univer- 
sal education, and mfllimm of 
new homes in new towns to 
replace those bombed or tom 
down as slums. If, having 
evoked the atmosphere of the 
1940s and 5 Os so powerfully, 
this series really can sling a 
bridge- across the intervening 
years to bring us into the latter 
part of the century and show 
us how and why we have 
become what we are, it will 
have done a remarkable job. 


The Official London Theatre Guide 

Su pp'.icd In Tlio Stick- tv of iiiotfua Tinv.rrv 


ADELraLStrand.THOTI J44JXBS. 

Sunset Boulevard 

Take proting Crew. MBacOSJPCBJS 

ALXEKY. St lijrtln'* Lme-lfcl *714*9-1730. 

Lady Windermere's FinuaimHk n 

TWroilsfarourSnnro. rrkwmoMZUD 


tbeqio nc;iihMAou.MeinMnt. 
The Sisters Rosenoweta 


TokcWUcrioo. nricocC 


AWWVCH.AIdWTdi.'MIinnMMM. 
An Inspector Cal Is 
UcbnMCHhi ritnxC75IH2Ua 


.WWIOUW. 

Les Miserable* 

Tafer: Uwliri p i it WCBrPS)«nU>| 


AJOUOJMnhaytatv WS7UMSSR. 
Neville's Island 


FHOBNEX, Oaring Cron Road. TUOTuauns. 
Blood Brothers 
Tac- nnwo— c i— i im. 


TliteHiai)lllyQmi.Min;gj|HHJp 
ATOUO VICTORIA. 17. Win M. MRAU4M1. 
Starlight Express 
Tntewtewri,. mcMecianiHSPjno 

CAMBRIDGE EnfwnSL Mnreaugn 

Sinderella Until Decs 

T*eCwaH Canto. PnrailKUIOfSm 

COllSEUMt. Stuntin', Um* WRUnOU 

En*Hjh Na trout OpmTHEMAGJC HJUTE 

KHOVANSHCHINA 

AR1ADNRON NAXOS 

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ItafaenawfiflyGm. MmOUMaSI 


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On Approval 

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WUWCZa?>WJO.OklCu uvbU' SL MSWJtUtiWL 
Crazy For You 

Tiitel»knuSoMt.Mf!tlUHWa 


ramcaofWMUHLCwuttrfi. thstuouw. 
Cops cabana 

T.br-.MaroMyOraa-t'w* 004000 00 


COMEDY. rjfltun SL TM OTLIM 4*31. 

A Passionals Woman 

UclVnU,am PrterrCSflKZEUU 


CMIUION, F1cwAJIrO«nnLT*la7IAn.t«w. 

My Night with Reg 

TnbcITtirMMyOnnH. IW* OAWWJO 




DOWN ION, TuttntwCbnrt M .T»Wi A1MMU 
CJn»nl nndl Ok 5 due la Ray*! VroTOty Ortwiww* 
Grease No.k»kn w >.s* r ,MS 

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DONMAXWAIteiOUSS.EaraunSl.TrlOI. 

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Minor LANE. CaUmtIi* Sow*. TH 071 AM -5000, 

Miss Saigon 

TaferCmnlCUidni. ftuwOUOOO » 


DUCHESS. CithrrtiwSlrKL T*I07I AMJB7S. 
Don't Dress For Dinner 
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pun op york-sa Maltin', L. iwisnassaia. 
Beautiful Thing 

Tahr litwwf Se—nr. Prime CASK I MS 
FORTUNE, RuurU Sr. Irfon mm. 

The Woman in Black 

Tab*- Connt Cotim Price. DS5M3USB 


GAKXICK, Ouray* Ciuia Rd TrlB7L <44500*. 
Moscow StationsuouKiiMM uuii Dkj 

Tnto- Charing Crow, fitm CSmCIMO 


ROYAL OPERA HOT. Groan! Cria. TcUTUOMOOS. 

Tiro Royal Open; LATRAVUXA 

Tiro tayd Baltic ASHTON CELSBRATTOmurLS 

■iu/the sleeping beauty 

Tnbr-CtrotnlCulw. 

RSCt. BarNun T* 1 07143*50*1. 

Hubican: A CHRISTMAS CAROL 

P***UC75W3i0O 

ThaHL NEW ENGLAND 

MnttCISm Tabu Button 

XA OUSTS Wt U-l IMn, ,W Tri «71 JTILW1 fc. 

urn* Nx n Les Ballets Jazz de Montreal 

NovSMJrtlO MnnbnaalnkfallunPktnn 

Cinderella Prices co-raso TnbwAmn. 
STHARTIN-S.W*wSn>rL1MRnA3i.uu. “ 
The Mousetrap 

TubtiLrttiUCTSqiaanr ftfcgefMMaOB 

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She Loves Me 

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»IAm5BURV.Sha(KibanAnc'M«7LJ7Mm. 
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‘Mrot'bunilujnCBat Sal. Prices CV5DCZ7 JO 


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Hamlet 

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Arcadia 

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STRAND. AM.niil.1bl 071.03*4000. 

The Prime of Miss Jean Bmdie 

TobrtOunogCroM. Prim, i* 00-0250 

VAUDEVILLE. Strand 1M07U1MOS7. 

The Queen and I 

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CROUNtVLANDSCArE Prim C14.IH. £1150 
lobe Wnrrfoo 


Musicians Benevolent Fund, 16 Ogle Street, London VIP 8JB Td:0 171-636 4481 
Registered Charity Number: 228089 


Chess No 1049: 1 Rxe5 b3 2 
Rc3 Hxe5 3 Rd3 mate. 


WVND11AM-8. CturtaRCnna Rri. Tri 07L3M.t7l6. 
Three Tall Women 
WgMlwnwSjgjjft Prig* cv5ecBjn 


FfcnnciBwbmlBllRhtiypB S UsewIBbedaiiRd 
MrhciuTUikKigaerodiiarataleplione booking. 


NochMge f orpoMdboobn gm pergonalcoBera 
T ■ Regia lei ed Chari Ijr 

Theatre line 


NEWLONOON.Dn.ryljMir.1c 1071 5454071. 
Cals 




FTNANCIAJL TIMES 


Radio /Martin Kbyte 


2 

. - . ■ <r.r4, 





and 


G iven, the tendency 
for the slightest 
change on -BBC 
Radio to prompt 
howls of outrage, the quiet rev- 
olution that has transformed 
Going Places (Radio 4, Friday) 
into a pendant o£ Breakaway 
has passed comparatively 
bloodlessly. Perhaps others folt 
as I did .that 'the old format, 
with its wtnphnsiB on adenoidal 
hearties of both sexes devoted 
to four wheels, reeked of rusti- 
dsed suburbia and saloon-bar 
squire-speak. They never 
seemed interested in places, 
merely the inedianics of get" 
ting there. 

"One programme is now an 
idiosyncratic travd piece, not a 
holiday mag like Breakaway 
hut a smaKer-scale exploration 
of the off-beat - Scotland's 
secret nuclear bunker, for 
instance, recently opened as a 
tourist attraction near 
Austro. ther in Fife. .Though- it 
was equipped, with a broadcast- 
ing studio/ the locals had no 
idea it was there. ChflKngiy. if 
disaster struck no family , rela- 
tives or friends surplus to per- 
sonnel were to be adinitfa*i- As 
somebody remarked, many of 
the elite would have p re ferred 
to stay outside. 

The same programme took 
composer Gavin Bryars to 
Whitby with its mined abbey, 
kipper-houses and Dracola con- 
nection. And memories of a 
west-country childhood stirred 
within me at the news that a 
recalcitrant RSPCA official had 
hijacked tire bell-ringing swan 
of Wells, releasing It where 
there are no bell-pulls to tug at 
teatime and where it presum- 
ably has to find its own. food, 
lbs swan-keeper was strangely 
dry-eyed. “My wife, was 'more 
affected than I wad,” he -con- 
fessed.- adding that she was “a 
cantankerous old thing hut 
wonderful" (I assume he 
meant the swan.) 

The Madness of Kings (pattio 
4) was disappointingly, light- 


weight It was JntrodactscLty 
Christopher Ctooke; -TOo&e 
py wiiisita seoriWihtiBS, hc- ssnee 
confided 

are jarred by such oafishness 
as the Last Mght of the Jftxans 
and Gilbert and SuDivan frote- 
blyv T imagine, st .thfi^Xerd 
High E xe cutioner’s strictures, 
against “the idiot who lauises 

with enthusiastic txme/AH can- 
tunes but this and every coun- 
try but his own“). 

The mini-series on the afldl 
bag of crowned heaxfe^was 
inconcSusiyA CMigula perbase 
had encephalitis, Ifitler Pai kite 

son’s. Nero was jnot so , bad, 
possibly schizop hren ic. The 
Piantagenets had tsnfiite hah-, 
pers. Ludwigr.of Bavaria sroba- 
bly didn’t do anything vritiihb 
young thou^i his scheme, 
to rob the Rothschild hank in 
Frankfurt seems a - trifle- 
extreme even by today’s fete 
and easy royal standardi The. 
programme acknowledged the 
hang ar of describing any. boo- 
worthy behaviour by ' the. 
all-purpose “mad”; and then 
proceeded to do so. Rs- brief: 
necessarily ignored the hysteri- 
cal repression that led to mid- 
dle and lower-class “madness*, 
breakdowns and suicide in Vic- 
torian times. Here are records 
of the mass demise in Bristol 
of an entire below-staire staff 
an the death of their mistress. 
Those were the days. 

The nostalgia factor still, 
operates in favour of middle- _ 
aged DJs. On Radio John Peri - 
drones on after a quarter-cen- 
tury, his vocal dreariness the 
aural equivalent of fallen 
arches. The self-consciously 
quirky choice of music recalls 
the modishness that had John 
Mortimer, no less, singing Ms 
praises.' But then the distin- : 
guiahed QC once referred to 
Boy George’s "sweet Irish 
■teoK*. Ha Bhould be an the 
new under Radio 3, along with 
John Peel Caligula and beH- 
rin^ng. swans. They wlQ be,, 
trader, they will Joe. 


! ROYAL FESTIVAL: HALL 1 


tut f *Trrrmn nnritnnin t>mn i nin> irnnrn 1 

y*vg«V Kfwfn, Barfiaia Bonnoy, Jon m mav Riilbannoiiial 
Chant*. BMthavMi Plano Cone MoJ5 .(Enwon 


Chorus. Baathuvan Plano Cone NoA (EmporoO: Brahma Gatmanl 
Ftoquiam. RETtWNS OM.Y - *Phflh amionto Ud | 

THBIjOHD O—PHUJU t m aO— CBaafalant«tltitiR«=H. 


ftana wnw M a n (camPL Dna nn, C Ca Lm a. J M fUhWay, w wpa 
London Philharmonic Choir. Schmidt Symphony No.i; Mozaitl 


London Phil harmonic Choir. Scl 
Hcquiam. £30, £21, E17, £13. E8, ES 

SAMDRA BERNHARX3 
"Sh* 1 * Back and Bahulng BadSyt" 


CiaSO.gtssO.EiaJO.eiOSO ^HamayKaaaAaaoplataaLW 

Tl« LOMBDOM PHBLNARIIOMC ftcaldant at IfM RFK. 

Franz WdMrWhit (oond) LaBa Joarofowlcz (vln) Arnold Enodah 
Ounce*. Sat 1; TcfiaRcovaky Viofin Cone; Aflwrna Snow-Whin & mo 7 
Dwaria (World pram) E3Q, £21 . C17. C13. £B. CS *Un Ph* 

m—mmmmmm ques< buzabeth hallmh^h^mhi^h 

MOfTC DE FASO Faidaa: aanga of lost lava & longing aung to the 
ac co m pan iment of die IZ^sWng Ponuguaaa guitar & ka Spanish oousln. 
The auitwnUc European Mias, o*vo in ckiba & oafaa of die Altama ft 
Balno AHo. EliVEIZ^r^O -Portugal WXyPwdupoea Unica. 


Baafhovan Sonatas ki G. Op.14 noa H A Rat. OpJS; m F min, C*lST 

(Appaadonata); In F, Op.10. Na.2; in c. Op. 2 No.3 

CIS. ei3.C1l.Ca.CB imamiuslca Arttets 1 Marnvement LM 


Cl8.ei3.C1i.CS.CB Inamnuslca Arttets 1 Mora^jacnent L« 

Sn CLEVBJUID QUAHIEI ParameD «o London ' 

F Hew Modal String Quartet No.1, IL387; Mandalaaohn Snbia Quaint. Op A* 
45 No.1; Ovortk String Quartan. Op. 108 ' 

E1S, E13, ea.60, Ca tmarniurtca Artahf MgtUdPSac 

S JJOM* 1 BjUWIMN The Bran Project & Special guest John Taylor. 

I Nov One of the greatest living Aguras in British Jazz oafebrales Ms 50th 
«S birthday «rflh a rare chance to hear hla bta band The Brens Protect plus 
solo, duo a quartet eats. E12-60, eiq. g7jo Serious Spashout 


29 Nov Swapf” Cahaudtmrf (labia} North InsSan CUassie 
7A5 One Of lndWs greatest Mng musicians k> Ms only 
Sponsor Na was Records LJd. £25. £ 20 . CIS. £1C 


Si Music. 
UK concert 


Symptwny in G. P.18 - , Symphony In F, P^2; 
MoaartSIntomeClorwertante. K2S7b; Haydn SMorria ConcartantaL 


Sponaor; GAKnale des Eauz Group. E18,eiB. E14,£13,C8 *HMS 

PRAW K- gtarferoWaneea. TWE BSBB5E NYMAN gum 

dS^K^«£L p CSST‘ “ la ' “ mbl “ ■»”—» 

£14, £12. CIO 

purcell room 

QOUU> PIANO TRIO 


Beethoven Trio In C minor. Op.1 NoJ; , 

£10. C8. £8 Kifdorvan SociatyfS GomK Concert Mgt | 


The 17 century's most notorious rate is the inspiration for both Etham's 
dosstc Restoration comedy and Stephen Jeffreys' fascinating new play.. . 

cflrectsd by Max Stafford-Clark 

designed by Peter Hartwell sghtmg oerign by Kevin Steep - ; ' 

ni 1 Amanda Drew .Bernard GaUagher 

Bamaby hay Katnna Levon. Ann Pennington. TlS' • - 
Tncia Thoms, Nicola Walker. Jason Watkins, David WeSXid. 


Rnro ^ - Cl 8 _ Mondays aw seats ts 

Box Office (and cc's): 071-730 1745/2554 
First Cal ersefit cards: OM- 835 2428 

. . . Com caaBaaaaa Bern 



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FINANCIAL TIMES WEEKEND NOVEMBER 26/NOVEMBER 27 1994 


WEEKEND FT 


XXIII 



★ 


TELEVISION 


CHESS 


« 


BBC1 


BBC2 


MW VBMHL TJB News. 7 JO Hngu. 7JS H ra 

‘"wrtBateakaS 
Albert^ Fifth Musketeer. £30 The Now Admrh 
tiro of Si^erman. Oils Live and KicMng. 


400 Open Urworatty. 1030 Cfunafcya. (EngSah 
eubttttaa). 1440 Style Byte. 1050 Netwofc East 
It JO Bollywood or Buatt 11 JO Ffim 94 with Bany 
Norman. i£20pm fine The Ameto Aflak. 


12.12 Weather. 

12.1B Grandstand. Introduced by Steve 
Rider. Inducting at 1X20 Football 
Focus: Prwiew of today's Premier- 
BNp programme. 1X50 Racing from 
Newbury; The 1XS5 Bonusprint 
G«iy ReWen Hurdle Race. 1.05 
News. 1.10 Rugby Union Prevlaw. 
150 Racing: The 125 Atao Long 
^stance Hurdle Raca 125 Snooker 
UK Championship. Early frames 
from the second semi-final. 1.50 
Radng: The 2.00 Hemessy Cognac 
Gold Cup Handicap Chase. 2.10 
Rugby Union; Wales v South Africa. 
Live coverage from Cardiff Aims 
Part* as the Five Nations champions 
take on the Springboks. 4-00 
Snooker. 4.30 Rugby Union. 4.40 
Final Score. Times may vary. 

Snooker coverage continues on 
BBC2. 

5.15 News. 

GJ5 Weather. 

SJSO Cartoon. 

5-40 Dad’s Army. Captain MafciwBring is 
offered the use of a Rofla-Ftayca - 
but has the misfortune to get it 
mixed up with the mayor's offidai 
car. 

6.10 Bruce Forsyth’s Generation Game. 

7.10 NoeTs House Party. Ronnie Corbett 
returns to NoeTs crazy household 
for fun and frofiCS including MTV. the 
Big Pork Pie, and another Ootcha 
award. 

8.00 The National Lottery Live. 

8.15 tail Friday. Cameras record Joanna 
Lumtay as she spends nine days 
learning to survive on a desert island 
off Madagascar with only the most 
bask: equipment 

9JB) News and Sport; Weather. 

MO The National Lottery Live. Update 
on the earlier draw. 

SMW F8m: Airptana! Disaster spoof about 
an iU- fated aMnar and its madcap 
passengers. Stanfrig Robert Hays. 
Leslie Nielsen and Uoyd Bridges 
(I960). 

11.10 Match of the Day. Desmond Lynam 
and the team analyse htghfighta of 
two top matches in the FA Premier- 
ship, including Arsenal's dash with 
c ha mp i ons Manchester United. 

12.10 The Danny Baker Show. 

1JO Snooker The UK Cham p ion sh ip. 
Further semi-final coverage from 
Preston's Gufid Had. 

2 . is Weather. 

220 Close. 


MS The Phil SSveni Show. 

2.10 Horizon. Efforts to save a Poiyne- 
sian tree anafl cttven to the edge of 
extinction by the introduction of a 
rival spedes in the 1960s. 

3.00 Rtnr They Passed This Way. Mar- 
shal Pat Garrett sea out to track 
down a young bankrabber. Western, 
starring Joel McCrea and Charles 
Bickford (1946). 

£30 Snooker The UK C ha mpionsh ip . 
Further semi-final coverage from 
Preston's Quid Hall. 

6.00 TOTP2. 

BAS What the Papers Say. Sarah Baxter 
reviews the week's news as 
reported ki the press. 

7.00 News end Sport; Weather. 

7.19 Assignment. Investigation Into the 
development and spread at biologi- 
cal weapons, showing how break- 
throughs In genetic engineering have 
given man a new means of destroy- 
ing himself. 

8.00 Later with Joofo Holland. Joels 
presents musk: by Mercury Music 
Prize winners M People, plus Nick 
Lowe, Ben Harper and Bulgarian 
female choir Le Mystere des Voix 
Bulgares. 

0-00 Have I Got News tor You. Conser- 
vative MP Sir Teddy Taylor and 
comedy actress Helen Atkinson 
Wood compete In the comedy news 
quiz. 

0-30 Per f ormance; Simmer Day's 
Dream. J.B. Priestley's vision of 
England In the rftermath of a 
nuclear war, showing how an elderly 
survivor's peaceful existence Is shat- 
tered by the arrival of three strang- 
ers. Storing John Gfefgud. Sastda 
Reeves and MBre McShana 
11.10 Last Word, Germaine Greer and her 
tamale panelists debate the pwpoee 
of women with Tony Persona. Alan 
Clark and Roy Porter. Last In eeriea 
12.16 F&ie Un Nos CHa Lauad. Premiere. 
Award-winning mystical Weteti 
drama tracing a man's chSdhood 
through a series of recofiections that 
end In an ineocpficatote murder. Dylan 
Roberts stare (1991L (Engish subti- 
tles}. 

1.50 Uncut Contrasting domestic 
scenes, from a teenager prourfiy 
showing off her caravan, to a Bos- 
nian Muslm refugee recalling home 
fife In Me vftage. 

2.25 dose. 


SATURDAY 


LWT 


un GMTV. 925 Whal'a Up Doc? 11 JO The Chart 
Show. 12J0 pm Opening Snot 

1-00 (TN News; Weather. 

1.06 London Today; Weather. 

1.10 Movies, Games and Videos. 

Review of Whoopi Goldberg's new 
Hm Corrina Carina, and the video 
release of Ace Ventura: Pet Detec- 
tive, which boosted Jim Carrey to 
stardom. 

1-40 wcw Worldwide WrestSng. 

236 Saint’s Soccer Skills. Crystal Pal- 

ace and England star John Salako 

and Tottenham superstar Jurgen 
Klinsmann pass on tricks of the 
trade. 

2J50 Brand New Ufa 

3.45 Murder, She Wrote. 

4.45 fTN News and Results; Weather. 

5.05 London Tonight and Sport 

Weather. 

5 JBQ Baywatch. Mtch agrees to help the 
FBI keep tabs on a mobster’s Girl- 
friend. 

6.15 Gladiators- Plucky competitors from 
Watford, Epsom, HUngdon In MW- 
eflesax, and Addestone, Surrey, take 
on the muscle-bound champions. 

7.15 Blind Date. 

5.14 National Lottery Result Live. 

a. 15 The Kkto from Alright on the 

Night Denis Worden presents a 
special batch of oock-ups and 
catastrophes featuring stare from the 
younger generation. 

9.15 TTN News and National Lottery 
Update; Weather. 

0J25 London Weather. 

9.30 Fflm; Commando. A retired special 
agent wages a one-man war against 
the terrorists who kidnapped his 
daughter. Action-packed adventure, 
starring Arnold Schwarzenegger 
(1985). 

11.00 AMs: In a New Light ’94. 

information and entertainment spe- 
cial aimed at boosting pubBc aware- 
ness. including appearances by 
Debbie Harry, Bin Cosby, and Presi- 
dent Bfll Clinton. 

12L3S fifcrc Our Sons. A businesswoman 
and a barmaid whose sons are a 
gay couple cross paths when one of 
the young man is stricken with Aids. 
Sensitive (frame. with Hugh Grant 
and Julie Andrews (TVM 1991); fTN 
News Headfines. 

g-gn The Big E. 

3.15 Get Stuffed; fTN News Headfines. 

3.20 European NIne-BaH Pool Masters. 

4.15 Get Stuffed. 

4LS5 BPML 

US Night Shift. 


CHANNEL4 


&0Q 4-Tel on Maw. £35 Earty Morning. 945 Site. 
11 JO Gazzatto Footbafl ftafia. 12J0 Sign Ok At 
Lebtrs. 1130pm The Great Marathe. (Engflsfi sob- 
tUes). 

1JOO Radng from Newcastle. Brough 
Scott Introduces coverage of the 
1.10 Lacbroke Handicap Hurtle, 

1.40 Steel Plate and Sections Young 
Chasers Qualifier, 2.10 Befiway 
Homes Fighting Fifth Hurdle, end 
the 2.40 Ladbroke Handicap Chase. 

3.15 Flkrs These Three. The story of two 
young women In charge of a girls' 
boarding school whose fives and 
careers are ruined by one of the 
pupfls" malicious lies. Dramatisation 
of Uffian Herman's Broadway play, 
starring Miriam Hopkins, Merle 
Oberon, Joel McCrea and Bonita 
Granville (1936). 

4JKS Plgbtrd. 

(LOS BrooksM*. 

6JS0 Right to Reply. Roger Bolton pres- 
ents viewers' opinions about TV. 

7.00 A Week in Politics. Irreverent recap 
at the week's poetical Issues; News 
Summary. 

8.00 Advenferos: The Shark Shocker. 
F*m Id lowing Austrians Ron and 
Valerie Taylor, who have defeated 
their fives to filming and studying 
sharks in a variety of locations 
around the world. The documentary 
focuses on their research coried out 
in South Africa as they test a new 
electronic barrier system designed 
to protect sharks end humans from 
each other. 

9.00 Dont Forget Your Toothbrush. 

New series. Chris Evans returns with 
a new mystery co-presenter to host 
the offbeat game show which gives 
audiences the chance to win a 
dream holiday to an exotic location, 
or a disappointing trip to somewhere 
tor more mundane. 

10.05 Rory Bremner: Who Else? Satirical 
comedy and Impersonations. 

10j 46 Rfin: Les Aments Du Pont Neuf. 
Loos Carax's modern-day (aaytale 
about the relationship between a 
tough street punk and a sick young 
woman. Julietta Binoche and Denis 
Levant star (1992). (Engfish subti- 
tles). 

1JD0 Late Licence. 

1.10 Herman's Head. 

1.40 Butt Naked. 

2.15 Let the Blood Run Free. 

2JtO The Word. 

2LS5 Close. 


REGIONS 


(TV REGIONS AS LONDON EXCEPT AT THE 

FOtXOWBM TTME&- 

AfWUA: 

1230 Monies, Games and VUegs. 1J5 Anglia 
News. 1.10 The Horae Without a Head (1963) £55 
Knight Rider. 3JK Angfio Nows rad Sport 925 
Angtfa Weather. 1135 BL Stryker Grand TJwft 
HotaL (TVM 1989) 

BOMBER 

1230 Movies, Games and Videos. IDO Border 
News. 1.10 R o ctapo rt . TJO Superstore of Wres- 
tling. 220 Hot Wheels. £50 MaeGyvbr. 345 Knight 
Rider. SL05 Border Maws and wearer 5.18 Border 
Sports Results. 11DS BL Stryker Grand Theft 
Hotel (TVM 1969) 

CENTRAL: 

1230 America's Top 10. 1D5 Cafe News 1.10 
The Munster* Today. 1 j* 0 Movies. Gaines and 
VKteoo. £10 SeeQuast DSV. 305 The Faft Guy. 
400 WCW worldwide Wrasrang. 5j» Central News 
5.10 The Central Match • Gods Extra 925 Local 
Worth*. 11 JOS Speakeasy: Mb Special. 
GRAMPIAN: 

1£30 Abalr Spars. IDS Grampian Headfines. 1.10 
TdeBoa. 140 Otenne-Ca. £10 Donnie Munfe. £55 
Taro* Hrsk. (TVM 1V7SJ 4D5 Superatara at Wroa- 
tfing. SDS Grampian Headlines. 5.10 Grampian 
News Review. 5.18 Police Neus. as Grampian 
Weather. 11D5 BL Stryker Grand Theft Hotel. 
(TVM 1989) 

QRAMASA: 

1250 Movies, Games aid Videos. 1.08 Granada 
News 1.10 Rockfeori. 150 Superatara oT WMfe 
250 Hot Wheels. £80 MacGyvw. 3.43 Knight 
Rider. 5D0 Granada New 535 Grenada Grata 
Extra. 1156 BL Stryker Grand Theft HotaL (TVM 
19SQ 
HTV: 

1250 No Naked Hamas. IDS HTV Nam. 1.10 Beat 
af British Motor Sport 150 Y03 te H te y*3 Hemes. 
£10 Cartoon Time. 250 Movies, Games and 
Videos. 250 The A-Team. 245 Knight Rider. £05 
HTV Naws and Sports Results 225 HTV Weather. 
1105 BL Stryker Grraxl Theft Hot* (TVM 1989) 
HTV Walaa an KTV axcapfc 
1250 The Undos Today. 

Homjtll: 

1150 COPS. 1200 The Chart Show. 1 j 05 Merififen 
News. 1.10 Yesterday's Hero e s . 150 Swrfmate. 
(TVM 1989) 550 Cartoon Time. £45 Knight Rfrtar. 
555 Meridian News. 

1250 Clough: The Life of Brian. IDS Scotland 
Today. 1.10 Best of British Motor Sport. 150 
TeMios. £10 The Travelling Conpa rt on. (1989) 
350 Take Your Pick. 450 Around the World In 15 
Minutes with Peter Ustinov. 455 Cartoon Tima. 
5J1S Scotland Today 
TVNB TOES: 

1230 Movies. Games and Videos. 155 Tyne Teas 
News. 1.10 The Fan Guy. £05 The MagnlAcont 
Two. (1987) 3.45 Knight Rider. SDS Tyre Teas 
Sanodoy 

W Fff PPWfWrHYi: 

1250 Montes. Games and Videos. IDS Westaoun- 
try News. 1.10 I Mairied Wyan Earp. (TVM 1983) 
250 The A-Team. £45 Dtaamin. 4.15 No Nrtted 
Rames. 555 Weelcourary News 255 Waitcountiy 
Weather. 1155 BL Slryker Grand Theft Hotel. 
(TVM 1989) 

YDftKStflRC: 

1230 Movlea, Games and Vkteos. 155 CNradar 
News. 1.10 The Fafl Guy. £05 The MqjnHcet* 
Two. (1957) £45 Knight Rider. SDS Calendar News. 
GLIOScoraflna 


SUNDAY 


BBC1 


BBC2 


LWT 


CHANNEL4 


REGIONS 


755 The Man from UNCLE. £16 Braakfwt with 
Frost. £15 Great Expectations. 1000 Saa Howl 
1050 French Ex perionca. 1046 Easy Money. 1150 
The 11th Hour. 

1250 CauntrvfVe. 

12J2S Waathar for the Week Ahead; 

1250 On the Record. 

1.30 Barney Boar Double BO. 

1 M The Yduag Indiana Jones Chroni- 
cles. Part twa The tsenage Indy 
gets caught up to the Mexican revo- 
lution. 

£50 EaotfiMfera. „ . 

- 3JM Ntefin Chirnlewrft. Jonas glvqs hb 
ttehgr a lavish funeral before vtslfing 
WBtshire to spend more tfrna with 
Charity. Shown last Monday on 
BBC1. 

4J50 The Bookworm. The fife of Robert 
Louis Stevenson, a mobUe Dbrary In 
the Outer Hebrides, and poetry by 
i rr Lochhead. 

£50 The Clothes Show. Gary Gutter 
meets five Wimbledon art students, 
and former haircfressera of the year 
reveal how to wow the Judges at the 
British hato awards. 

SL4S Just wnnam. MtecMevous school- 
boy WMIam Brown enters the world 
of amateur dramatics, and helps a 
greet actor get over hfs nervous 
breakdown. 

6.10 News. 

£55 Songs of Prakm. Pem Rhodes visits 
the ancient cathedral of St Magnus 
to KfrkwaO, capital of the Orkney 
Islands. 

7.10 Lovefoy. The shifty dealer seeks the 
help of a Caribbean expert to locate 
a valuable 19th century cabinet, 
whie Charlotte is left holding the 
baby - literafly. 

8.00 Vintage Last of the Summer Wine. 

850 Birds o t a Feather. Sharon, Tracey 
and Dorien spend a <*ifet Saturday 
night reminiscing about thalr fkst 
loves. 

050 Seaforth. Larry Field threatens to 
expose Bob and Diana’s scheme to 
buy into Andrew Winter's afflng engi- 
neering company. 

OlSO News and Waathar. 

1056 The FuB Wax. 

1055 Everyman. How American 

missionaries' attempts to introduce 
their own brand of Christianity to 

post-commuiist Ukraine are receiv- 
ing a treaty response from locals. 

1150 RLrc Cornea a Horseman. 

Hard -working ranchers reaol ve to 
protect their farms from an unscru- 
pulous land baron. Western, starring 
James Caan and Jana Fonda (1 978). 

150 Weather. 

155 Ctoee. 


7 DO Animal WortL 740 BUnScy BO. 855 WtsNng 
£15 Ptaydaya. £35 Moonfin. 9D0 The Busy World 
of Richard Scary. £20 BMaa. £40 Stone Protec- 
tors. 1050 TimeBustara. 1025 Grange HU. 10D0 
The Boot Sfraat Band. 11.15 Artr^aous. 1145 The 
O Zona. 1250 Quantum Leap. 1245 pm Siowy 
Rbw: The Mc&ogor Saga. 

150 Around W e s tmin ste r. 

350 Snooker: The UK Championship. 
David Vine Introduces the flnrt ses- 
sion of the final in front of a packed 
audience at Preston's Guild Han. 

5.10 Rugby Special Highlights of Wales 
v South Africa from Cardiff Arms 

' Pork, and a round-up of news tram 
the dhrisional championship. 

6.10 The Natural World. New series. 
David Parer and FSmh nth Parer- 
Cook*s award-wtontog documentary 
about the albatross, featuring foot- 
age of nasttog-sitBs on the remote, 
windswept Crozet Islands. Racfio 
transmitters track these largest of an 
sea birds as they travel vast dis- 
tances in search of food, and show 
how the fishing techniques used by 
Japanese tuna trawlers are pushing 
tham to the brink of extinction. Nar- 
rated by David Attenborough. 

750 The Money Programme. Lesley 
Curwen Investigates whether banks 
and building societies have over- 
reacted to their excessive mortgage 
fencing during the 1980s property 
boom, and are now threatening to 
depress house prices by being 
excessively cautious about allotting 
funds to buyers. 

750 Snooker: Hie UK Championship. 
The earty frames from tonight's dos- 
ing session of the final. 

8.10 From A to B: Tides of Modem 
Motoring. Light-hearted portraits of 
couples arguing in their cats, 
demonstrating how the closest of 
relationships can come wider strain 
on the road. 

950 Snooker: The UK Championship. 
David Vine presents the conclusion 
of the final from the GuBd Hall in 
Preston. 

050 Ti mowatch . Maverick American 

Investigator John West reveals new 
evidence suggesting Egypt's monu- 
mental Sphinx statue may be much 
older than previously thought. 

1050 Snooker The UK Championship. 
David Vine presents WghBghts from 
the final. 

1150 FBnr The Homecoming. Adaptation 
of Harold Pinter's ptey. starring 
Michael Jeyston as a man who 
takes his wife to meet his long-lost 
father and brothers. With Ian Holm 
(1973). 

155 Close. 


650 GMTV. £00 Tha Ofemey Club. 10.1 S Link. 

1050 Sunday Matters. 1150 Morning Worship. 

1200 Sunday Matter*. 1230pm Crosstalk; London 

Weather. 

150 fTN News; Weather. 

1.10 Walden. 

250 The Mountain Bike Show. 

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and maltreatment are growing. A 
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and carried a concealed camera to 
record shocking conditions at one 
London nursing home. 

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(19801. 


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House on the Prana 1240pm Ryan Giggs Soccer 
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eagerly awaited games in itefian 
footbafl. 

350 Last Drain to Meddne Hat. Munay 
Sayto travels from Quebec City to 
Toronto. 

450 News Summary. 

4.10 Time Team. An archaeological site 
in Athetney. Somerset, which could 
provide new information about King 
Alfred the Great 

5.10 High Interest: Over My Dead Body. 
Irreverent report on the rising cost of 
funerals, which often represent a 
serious financial burden far grieving 
relatives. One French uidertaker 
however, has eased the pressure on 
many efients by opening low budget 
“death" supermarkets - and is plan- 
ning to open a branch in Britain. 

650 Don't Forget Your Toothbrush. 
Chris Evans returns in host the off- 
beat game show giving audiences 
the chance to win a dream holiday. 

7.00 Equinox: Dtsmantfing the Bomb. 
Difficulties surrounding the safe dis- 
posal of nuclear weapons In the 
aftermath of the cold war. In Texas, 
indestructible radioactive material is 
stored above ground in SO year-old- 
bunkere. while weapons-fyade plu- 
tonium is available on the open mar- 
ket in Russia. As politicians and 
scientists debate what shotid be 
done. Equinox evaluates the down- 
side of disarmament. 

850 What Has Become of Us? New 
series. Ex a mtoation of Britain in the 
1940s and 1950s, beginning with the 
postwar determination to create a 
universal welfare state- 

950 Film: BOI and Ted’s Bogus Jour- 
ney. Premiere. Keanu Reeves and 
Alex Winter return as the wacky 
would-be heavy metal stare, this 
time taking an unscheduled trip to 
HelL Comedy sequel, with Waiiam 
Sadler (1991). 

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imprisoned for gruesome underworld 
killings in 1974. after Britain's lon- 
gest -ever murder trial, protest their 
innocence in exclusive Interviews. 
12.10 Ffinc Bab □ Oued City. 

Award -winning drama focusing on 
the rise of Islamic fundamentalism 
and religious Intolerance in Algeria. 
Hassan Abdou stars (1(94). 

150 Close. 


ITV REOKWS AS LONDON EXCEPT AT THE 
FOLL0WBM TUNE3C- 

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RADIO 


SATURDAY 


SUNDAY 


Brian 

item. 

130 

lartin 

4.00 

Marti 

£00 

The 


30 


Grime end her Acoustic Gufrar 
Group. 1230 Cioas. 


BBC RADIO 4 


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Cohen fefecte te M* musket 


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lgm the Cfty, Play 
mason eetto 
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y, October 1902. 


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re ce Ned ki wetem Bnp* 
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Fruhmagxdn. 


Fritz 3 and Genius, the 
software programs which 
defeated Garry Kasparov at 
five-minute chess in Munich 
and at 25-minute chess in Lon- 
don, have become popular 
choices for players seeking a 
strong training partner. 

Both will run on an IBM- 
compatible 356 or better PC. 
Fritz costs £80. Genius 3.0 at 
£90 is used by several grand- 
masters, and plays to IM stan- 
dard; Genius Plus at £110 has 
an enhanced opening library 
and, running on a Pentium 
chip, reduced Kasparov to 
despair at the Intel Grand Prix. 

For viewing the latest com- 
puters, I recommend the BCM 
Chess Shop(071 603 2877) which 
has a friendly and efficient ser- 
vice and is situated in a quiet 
village area of Kensington. 
Last month’s annual grand- 
masters v machines Harvard 
Cup was another success for 
technology. The programs, run- 
ning on Pentiums, scored 39% 
overall against 25 % in 1993; 
while W Chess, created in Ala- 
bama, totalled 5/6 against 
America's learitng players for a 
world champion level 2885 rat- 
ing performance (M Rohde, 
White; WChess, Black; English 
Opening). 

1 Nf3 NIB 2 c4 c5 3 Nc3 d5 4 
cxdfl Nxd5 5 e4 Nb4 6 Bb5+ 6 
Bc4 Nd3+ 1 Ke2 Nf4+ S Kfl Ne6 
9 b4 is an alternative sharp 


line. N8c6 7 d4 cxd4 8 a3 dxc3 
9 Qxd8+ Kxdfr 10 axb4 cxb2 11 
Bxh2 Bd7 12 0-0 KeS! In Tint 
man v Tal, 1985, Black riskily 
went for a second pawn by ffi 
13 Bc 4 Nxb4 14 e5. 

13 Rfdl fB 14 Ba4 e5 15 b5 
NdS 16 Racl? Better 16 Rd3- 
Ne6 17 Rd5 Nf4 18 Rxd7 Kxd7 
19 b6+ Ke6 20 Bb3+ Ke7 21 
Rc7+ Ed8 White's attack looks 
threatening, but WChess 
defends accurately. 22 Bxb7 
axbS 23 BC4 Ra4 24 Nd2 KcS 25 
Rf7 Bc5 26 g3 RdS 27 Bc3 
Rxc4! 28 Resigns. 

No 1049 



White mates in three moves, 
against any defence. Capa- 
blanca, the most naturally 
gifted of world champions, 
solved this over dinner. Can 
you do as well? 

Solution Page XXII 

Leonard Barden 


BRIDGE 


Today's hand is from rubber 
bridge: 

N 

♦ Q75 
V K 10 5 3 
+ K 10 6 

A A 42 

W E 

4 A 6 3 A J 10 

¥ - ^ J9 8 62 

♦ A 9 7 4 2 +Q85 

* Q 9 8 6 5 AJ10 7 

S 

4 K 9 8 4 2 
¥ AQ74 
4 J 3 
4 S3 

Bast dealt and passed, and 
South bid one spade. Most 
Norths would reply with two 
no trumps, but this North said 
two clubs, a response that has 
much to recommend it. South 
rebid two hearts, and North's 
raise to four hearts closed the 
auction. 

West led the diamond ace 
and switched to the six of 
clubs. Taking with the ace in 
dummy, declarer led the heart 
three to his ace and was 
shocked when West threw a 


diamond. But South proceeded 
to play with great s kill- Cash- 
ing his club king. South led a 
spade to the queen and ruffed 
the last club in hand. Bfe 
crossed to the diamond king 
and ruffed the 10. He had won 
seven of the first eight tricks 
and this left a five-card ending. 

West held ace, six of spades, 
a diamond and two clubs; 
dummy held two spades and 
king, 10, five of hearts, Bast 
held 10 of spades and four 
hearts to knave, nine, while 
South held four spades to the 
king and the heart queen. 

Declarer played off his heart 
queen and exited with a spade. 
It made no difference which 
defender won the trick. If East 
wins, he is forced to lead into 
the trump tenace on the table; 
if West wins, dummy will play 
his spade on whatever he 
returns, East must ruff, and 
surrender the last two tricks to 
dummy’s tenace. A most 
remarkable hand and bril- 
liantly played by the declarer. 

E.P.C. Cotter 


CROSSWORD 


No. 8,621 Set by DINMUTZ 

A prize of a classic PaUkau SouverSn 800 fountain pen. inscribed with the 
winner’s name for the first correct solution opened ami five runner-up 
prizes of £35 Pelikan vouchers. Solutions by Wednesday December 7, 
marked Crossword 8.821 on the envelope, to the F in a n cia l Times, 1 South- 
wark Bridge, London SBl 0HL. Solution on Saturday December 10 . 



Name. 


Address. 


ACROSS 

1 Wild emotionalism subverted 
this year (8) 

5 Cam, for example, needs force 
reduced (6) 

9 Cautious about boy, daily? (8) 

10 The buck stops here! (6) 

12 Is yen rate of exchange some- 
thing to trouble oar readers? 
19) 

13 Showers no longer in out- 
buildings (5) 

14 Something odd in Cawdor? 
Rather! (4) 

16 Venus, possibly, glowing was 
prominently featured In film 
17) 

19 Fiery sun descends (7) 

21 Munro's name for a monkey? 

24 ^irl receiving benefit in 

retirement (5) 

25 Member has ess on ravioli (as 
starter) and cheese ( 9 ) 

27 Quicken university oars, per* 
haps, before end of Mortlake 
(61 

imagine England's openers 
— a six against Sonth 
for example, running 
backwards! (8) 

29 Seriously travel up and down 
on river (6) 

Solution 8,620 


aEHaBia osQBnn 

□ 0 □ a h □ 

Baaanjna amnoonE 

□ □□□□□□ 

□nDEHaasHa heed 

nan n a 
aamia EEEQjEDiin 
a dee a 

□□□DDEDD □□□□□ 

□ D E □ E 
HQED BDEQOBQQGQ 

0 a a h m n a 


28 


□□□□□ED 

□□□□□□□ 

0 0-B 
□00DI30 

□ HE 
□□□DDE 


30 Sacerdotal English novelist 
out east (.8) 

DOWN 

1 Game producing this classic 


2 


opener (6) 
The Iasi 


last word on quarters for 
sailors (6) 

3 Celebrity In city area almost 
delayed (5) 

4 State of popular girl? (7) 

6 This usurer advances - listen! 




7 Cautious about 


and 


iport 

tired of the conflict? (3-5) 

B Inverted Irish design, per- 
haps, dose to the canvas (8) 

11 Burden, and where it seems 
to rest mainly? (4) 

15 Practice tries in authentic set- 
ting (9) 

17 A steward, appointed, is going 
to tbe Orient (8) 

18 Heartsease, we hear, in the 
clinic? (8) 

20 Exclusive footpad? (4) 

21 Broken remains of the stu- 
dent-group (7) 

22 Confounded silver bat’s loose! 

f6) 

23 Eager to see edition in 
black-and-white (6) 

28 Fuse element needs earth ter- 
minal IS) 

Solution 8,609 


QBaatanQB □ 
000.00 
□QQEH SQS0 

0 0 □ a a 

□ 

B 

D 

□ 

□EEC3 
E □ 
□□□□ 
G] D 

HnniSOEEDH 

QD0EQ 


□BEBHB HEnnEdtDP] 


WINNERS 8,609: H.C. Thomas, Coventry; D- & I* Arthan, Cue 

Cheshire; C.A. Bairibridge, Northolt. Middlesex; R. Chapmau, 

nals Green. Cambs; Mrs E. Grier, Corscombe, Dorset; C.G. Storey 
Newcastle upon Tyne. 







XXIV WEEKEND FT 


FINANCIAL TIMES 


WEEKEND NOVEMBER 26/NOVEMBER 

' , - yrmt . 


Peter Aspden 


Take a Coke, a glass of Moet, shake well 



r.m:':- 


There was a pleasing symmetry 
about the news that both Coca-Cola 
and Mo» et Cbandon were launch- 
ing advertising campaigns this 
month; two world-famous brands, 
both under threat from arriviste 
competitors, giving their respec- 
tive bottles a good shake to spray 
the opposition away in time for 
Christmas. 

Both drinks stand for fizz, froth 
and fan, bat they manage to 
appeal to opposite instincts in us. 
Coca-Cola, hitting back at the 
supermarkets with a £4m televi- 
sion campaign, taps that youthful, 
clean-living, democratic impulse 
which we should all, in principle. 


like to share: its message is shame- 
lessly romantic, all-embracing, 
hopeful and artfully naive. It is a 
NOW product, a multi-national 
beverage far the modern world. 

Most et Chandon. on the other 
hand, in devising its first-ever Brit- 
ish advertising campaign, has no 
hesitation in halting back to the 
louche air of fin-d&siede Paris to 
promote its appeal, its curvy, 
Mucha-esque siren giving us die 
kind of sultry come-ou which the 
clueless boys and girls in Coke- 
land would probably interpret as a 
touch of flu. Here is wickedness, 
expense and exclusivity, and 
democracy be hanged. 


It is, of course, the story of the 
new world versus the old: brasb, 
in-your-face Americana meeting 
creaking, decadent Europa across 
the billboards, the latest in an end- 
less series of cultural bouts. 

The relationship between Amer- 
ica and Europe, and France in par- 
ticular, is actually more complex 
than is commonly supposed. One 
only has to watch the opening 
frames of Jean-Luc Godard's A 
Bout de Souffle to appreciate the 
happy symbiosis that can be 
achieved between the two cultures: 
street-styled existentialism and 
B-movie beefcake combining effort- 
lessly to provide some of the most 


influential images of the 1960s 
(American pop culture intrigtungiy 
paid back by almost naming tbe 
captain of the new USS Enterprise 
after the iconoclastic director). 

The mutual exchange of jokes 
went on: America sent Jerry Lewis 
to France, where he became a cult 
hero; the French took revenge by 
sending a succession of the most 
ponderous philosophers of all time 
to lecture to the brightest-eyed stu- 
dents in the world. Years later, 
Allan Bloom would write The Clos- 
ing of the American Mind to attack 
the consequences of continental 
thinkers on his country's sensibil- 
ity, while in Paris, something 


called Euro-Disney appeared to add 
spice to all those in terminable cate 
conversations. Semickeyotics or 
what? 

Tbe most magnificent example erf 
Franco-American horseplay is 
Stanley Donat’s romantic comedy 
Furmy Face, in which an avuncular 
Fred Astaire wins the heart of 
Audrey Hepburn by dancing rings 
around a group of earnest philoso- 
phers in hooped shirts and berets. 
Here was American brashness - 
and intellectual insecurity - in 
abundance, hut displayed with 
such good humour and brio that it 
was difficult to take seriously. 
Who could declare cultural war on 


Astaire, far . goodness sake? ' 

What is. remarkable,, however, is 
that, even in .the trans-global, 
multi-faceted 1990s, the cultural 
battle between new and tdd world 
continues. Its most obvious mani- 
festation in London in recent 
weeks has been in the box office 
.donnish between Quentin Taranti- 
no’s Pulp Fiction and Krzysztof 
Ete&LowskPs Three Colours: Red, a 
conflict which began at this year’s 
fiamipc Film Festival and at which 
the A”™ 1 *” 111 was controversially 

rewarded with the Pabne d’Or. 

Hare is a classic choice, between 
t he hard-edged, primary-coloured, 
self-referential savagery of Taran- 


tino and Kieslowski’s qutatotf, 

open-ended musings on iwapaf- 
ships and destiny, tiretwotifre©- 
tors possessing in common- an 
immense talent but as. mvidedvm 
their world views as those botfies 
of fizzy drink. fa London, : as at 


IS.WBfr- 


mng; 

being anti-American, nor feeling 
censorious about vkteice; it fa just. 3 
that I have grave, suspicions afint : 
a culture which so happBy fronted* 3 
its most conspicuous fl aws. B e: : 
standing up far Utile old Europe/ •> 
Fd Hke to teach the world .toufag#: 


Private View 


The mathematician 


in his cave 


Christian Tyler meets a man whose beliefs about human 
understanding are causing scientific controversy 


A mong mathemati- 
cians, Sir Roger 
Penrose la a cave- 
man. I do not mean 
he is some snaggle- 
toothed evolutionary throw- 
back - even If certain high 
priests of brain science would 

caTT him that 

He is a caveman because he 
agrees with Plato, who first 
used the analogy that human 
beings are like prisoners in a 
cave who can see only the 
shadows of reality thrown on 
to the wall by the firelight. 

For Penrose, mathematical 
truths are part of reality: not 
human inventions, but pre- 
existing “forms’ 1 whose exis- 
tence we have to discover. 

He has reworked Plato’s par- 
able for the prologue of his sec- 
ond book. Shadows of the 
Mind, which restates and 
develops the controversial 
claim of The Emperor's New 
Mind that human understand- 
ing will never be explained in 
terms of computer-like calcula- 
tions. 

Human consciousness can- 
not even be simulated by a 
machine. Furthermore, the sci- 
entific explanation for con- 
sciousness will depend on dis- 
covering new laws of physics. 

The cave of the Rouse Ball 
Professor of Mathematics at 
Oxford University is satisfy- 
ingly chaotic. Papers, books 
and correspondence crammed 
the room at the Mathematical 
Institute, a faded new block on 
St Giles. Adding to the jumble 
were old geometric models 
made of plaster, metal and 
wire which had been retrieved 
from some forgotten basement 
A box of empty coffee jars and 
a broken percolator lay an the 
Door, next to a jigsaw puzzle of 
special difficulty based on one 
of Penrose’s own geometric 
bralnteasers. Symbols and 
equations ran riot on the 
blackboard behind bis desk. 

Mathematics must be wired 
into the Penrose family. An 
older brother, Oliver, has just 
retired as professor of mathe- 
matics at Heriot-Watt Univer- 
sity, Edinburgh. A younger 
brother, Jonathan, is a chess 
grandmaster. A nephew 
teaches maths at Durham and 
a son is doing his post- 
doctorate in the subject 
Penrose, whose special abil- 
ity is spatial thinking, began 
constructing polyhedra 
(many-sided shapes) at the age 


of 10, when he regarded maths 
as a irind of game. “An ability 
to do maths is not essentially 
different from ordinary think- 
ing,” he said. “One does it for 
fun. really. So you have to 
enjoy it to do it seriously.” 

Ma thema tics was discussed 
round the family dinner table. 
Penrose's father, a specialist in 
the inheritance of mental 
defects, would speculate on 
whether the brain was some 
sort of computer. However, he 
expected his son to become a 
doctor. “1 was actually, 
secretly, going to be a brain 
surgeon,” Penrose said. 

Another influence was a 
series of radio broadcasts by 


'There is a 
view that a 
machine can 
act as though 
it sees red, 
feels pain, etc. 
Pm saying it 
can't/ 


Professor Fred Hoyle (leading 
proponent of tbe “steady state” 
theory of the universe). Lunch- 
ing with his elder brother at 
Cambridge one day, Penrose 
impressed Denis Sciama. a cos- 
mologist, by questioning 
Hoyle’s description of galaxies 
disappearing over the horizon 
of the universe. 

"I drew a picture to show it 
didn't make sense. I think 
Denis was quite struck by this 
and later when I went to Cam- 
bridge as a graduate student 
he took me under his wing.” 

As a student at London and 
Cambridge, Penrose took op, 
as sidelines, quantum theory, 
particle physics, general rela- 
tivity and cosmology. 

He also studied mathemati- 
cal Logic, where he encoun- 
tered Kurt Gfidel's revolution- 
ary proof that In any logical 
system, such as that on which 
arithmetic Is based, there are 
truths which cannot be derived 
from the axioms of the system. 
An interpretation of Gfidel's 
“incompleteness" theorem 
underpins the controversial 
claims of Shadows. 

Penrose wrote these two 
“popular” science books partly 


to convey his own sense of 
excitement, he says. To call 
them popular is misleading, 
however. Most of his support- 
ing evidence is indecipherable 
to non-mathematicians. Even if 
the hypothesis is clear, the 
books are tougher to read than 
the best-selling Brief History of 
Time by Stephen Hawking, 
Penrose's opposite number at 
Cambridge and former collabo- 
rator on Black Holes. 

The books were to have been 
a retirement project. Then Pen- 
rose saw a re run of a TV pro- 
gramme in which Marvin Min- 
sky and another American 
pioneer of the “hard” school of 
artificial intelligence made 
“some very extreme remarks". 

He added: “From their very 
particular point of view what 
they said was logical But I just 
don’t believe it As an under- 
graduate 1 had tried to build up 
logical systems which would 
reduce thinking to computa- 
tion. Even then, in the middle 
of doing it 1 had a suspicion 
that something was wrong and 
this wouldn’t work.” 

Most people, I said, had 
never heard of Gfidel but 
would say it was obvious that 
consciousness wasn't just com- 
putation. Why did you need to 
demonstrate it? 

“It’s very curious. You find 
people on both sides who 
regard the other point of view 
as ridiculous. People say ‘Why 
bother to write the book?* But 
what's not so obvious is that I 
am saying something stranger 
that is. that you can't even 
simulate this activity. 

“There is a view that a 
machine can act as though it 
sees red, feels pain, etc. My 
line is different I’m saying it 
can’t even act as though it has 
these qualities. There is some- 
thing in our understanding 
which you couldn't even imi- 
tate... and, stronger stfll, you 
couldn’t do it with presently 
known physics. 

“The argument from obvi- 
ousness is a good argument 
but it doesn’t get you any- 
where. It doesn’t tell you what 
to do." Briefly, what Penrose 
tells us to do is look at the 
“microtubules” in the neurons, 
or brain cells, for signs of 
quantum brain activity which 
could, with the missing phys- 
ics, translate into non- 
com putable consciousness. 

Are you envious of the com- 
puter's power? 


“People often ask me that 
one." Penrose replied. “There 
is certainly an element of 
pride, I suppose, and not want- 
ing to be outdone by a mere 
machine and that sort of thing. 
If computers get very good at 
chess I don't like the idea. But 
Tm pretty sure it's more than 
that. I don’t think it's correct, 
that's alL” 

Do mathematicians like you 
feei left out of the argument? 

“Certainly I feel there's an 
awful lot of very bard work, 
clever work, very important 
work which is almost totally 
ignored and dismissed, simply 
because it’s not something that 
people understand and may 
not have any immediate value. 
Mathematicians tend to be 
modest. They work away in 
their corners and don’t go and 
shout about thing s." 

So you think computer sci- 
ence is hijacking maths? 

"I think to some extent it has 
hijacked it. There's some inter- 
esting stuff, of course, and 1 
don't want to denigrate it But 
I don’t think it should take 
over in the public's mind." 

The pure mathematician is. 
of course, a species of philoso- 
pher. Whether Penrose's math- 
ematical brilliance carries over 
to his philosophical reasoning 
is what his critics question. 

But in subscribing to a Pla- 
tonic world of ideas, he is cer- 
tainly not alone, even among 
mathematicians. The concepts, 
he says, are “out there" in the 
sense of being independent of 
our perception of them. Does 
he mean that they exist like 
Plato's forms? 

"Yes, very much so. But I get 
into a lot of trouble on that 
one. People will often go along 
with other things I say. But 
even the most sympathetic I 
find sometimes baulk at taking 
mathematical forms as really 
e x i s t in g. 

“The trouble is. if you don't 
take thpra as existing in some 
sense then the other mysteries 
become even more mysterious. 
The physical world behaves to 
such an extraordinary degree 
in accordance with highly 
sophisticated mathematics. It 
makes that mystery even more 
puzzling if the mathematics 
somehow isn’t there, if it's our 
creation. 

“Einstein's theory of general 
relativity is a wonderful exam- 
ple why that can't be the case. 
Newton's theory of gravity had 




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been around for years and 
Einstein didn't need to produce 
a new theory for which there 
was anyway not much evi- 
dence at the time. 

“But now it’s become the 
most accurate theory known to 
science. And it was these all 
the time! It's not that somehow 
we Ye imposed our thfo(rf n g on 
the way that space is con- 
structed. It’s out there.” 

Then why don’t you just say 
that souls exist, too, and do 
our thinking? 

“Well, I suppose one can say 
things like that. Certainly if 
one uses 'soul' to describe a 
person’s consciousness I have 
no objection to tbat It's just a 
word I tend not to like to use 
because it has unfortunate con- 
notations. I suppose I don't 
find it very helpfuL" 

Are you really a Pythago- 
rean mystic? 


“Sometimes people call me 
that Labels are t hin g s which 
people put cm me. Pythagorean 
mystic? I hate to use the word 
mystic. But I certainly have 
been called Pythagorean rather 
than Platonic as someone who 
believes in mathematics under- 
lying everything.” 


1 asked Penrose whether the 
controversy excited by his 
books was drawing him away 
. from his chief activity, which 
is mathematical physics - spe- 
cifically, something railed twis- . 
tor theory which he has 
worked on far 30 years. 

“I have other things I really 


want to get back.to,” he said,' 
-“although the question of the 
■ missing physics Is something I 
want to think about more seri- 
ously. In- a certain sense I 
regard ag these other things as 
distractions from my worib 
But they’re inte resti ng distrac- 
tions.” 


K./V- 


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As They Say in Europe/James Morgan 


Mafia sets example on crime 


R eading tbe British 
press one would 
hardly have known 
that the UN Confer- 
ence on crime was taking 
place in Naples for most of 
last week. Only the speech by 
Italy’s prime minister, Silvio 
Berlusconi, which came just 
as it was announced that he 
was being investigated for 
corruption, aroused a vicari- 
ous dicker of interest 
In Brussels the conference 
was front page news, la Libre 
Belgique shouted: "Organised 
crime finds who it is talking 
to.” That was followed by a 
story about the Belgian jus- 
tice minister, Melchior Wacfa- 
elet, who made what the 
paper saw as a hard-hitting 
speech cm the "complementar- 
ity of global and regional 
approaches” to crime busting. 

The story alongside gave 
the game away: "Drags and 
Holland pin point ed in CTIF 
report” lhe CTIF is a Belgian 
government unit for cracking 
down on money laundering. 
Hie report said BFrSlhn had 
been identified as part of snch 
operations. But only three per 
cent of that sum had been 


traced and frozen. 

The other big Brussels 
daily, Le Soir, was equally 
excited: “Belgium arms itself 
against organised crime.” 
Again it gave pride of place to 
the concept of a regional 


ft would, unfortunately, be 
misleading to say that all Bel- 
gium is girding its loins In 
the everlasting straggle 
against delinquency and the 
Dutch. In Flanders, priorities 
were different Het Cazet van 
Antwerpen led on "The warm- 
est November of an time”. 

As always with this paper, 
its stories are hard to check, 
like another front page item, 
lifted from London’s The 
Times. This concerned an 
impending invasion of plastic 
ducks threatening England 
because a container ship had 
shed its cargo in the North 
Pacific two years ago. 

Het Gazet lives in some curi- 
ous make-believe world, half- 
way between Tolkien and 
Breughel, but without the 
crime. That may account for 
the curious news-from-no- 
where quality of whatever 
emerges from Flanders. 


Back at tbe UN conference 
in Naples, Pierre MGfaaignerie. 
the French justice minister, 
added his voice to the call for 
“the greatest international 
co-operation” in fighting 
crime. 

He also focused on what he 
called “fiscal paradises”, 
arguing that offshore banking 
centres should be tackled 
with as much vigour as the 
international community had 
applied to the supporters of 
international terrorism. 

The French do not like 
unregulated business activity 
and the threat should be 
taken seriously. After all in 
1985, New Zealand got the 
rough end of the French stick 
when government assassins 
arrived from Paris to blow up 
the Ramhoto Warrior. Thai it 
was Iraq that was clobbered 
and now, apparently, it will 
be Guernsey. In highlighting 
crime blackspots of the world, 
the Italian paper La Stampa 
also singled out the Channel 
Islands, rather than Naples. 

Everybody finds someone 
else to blame for crime, lhe 
Belgians have to protect 
themselves against the Dutch. 


The Russians pointed ont that 
their supposed crime wave 
was merely the creation of a 
“cold war style” propaganda 
campaign designed to hold up 
their country’s development. 

The choice of Naples as the 
site of a conference on crime 
was intriguing. The Frank- 
furter ABgmeinc Zeitung dealt 
with the puzzle - at consider- 
able length, inevitably. It 
stressed the “high expecta- 
tions of the population”. 

The Neapolitans had greatly 
enjoyed the G7 Summit there 
in July, for during that period 
there had been no litter on 
the streets until eight in the 
evening; It has become a land 
of golden age in the Neapoli- 
tan popular imagination. 

There are many reasons to 
believe that a city like Naples 
was the right choice for any 
such conference. So long as 
the camorm is squared before- 
hand, it can guarantee secu- 
rity far more reliably than the 
police. After an. a car can be 
parked in perfect safety with 
the key in the ignition by a 
guest at a mafia wedding. 

And anybody who attended 

the G7 Summit in Naples 


knows how the highest moral 
standards were assured. A 
large number of young 
women of outstanding physi- 
cal attributes were in atten- 
dance. But even the rougher 
end of the journalistic corps 
kept its distance once officials 
announced that these were 
the daughters of the leading 
local godfathers. 

But unfortunately the crime 
wave was spreading to the 
most unlikely places even as 
the crime fighters met. As 
someone who has lived at dif- 
ferent times in Vienna, I had 
thought that traffic rules 
there were inviolable: one was 
physically restrained from 
crossing an empty street by 
other pedestrians when the 
lights were green. 

But research, according to 
Der Standard, has now shown 
that drivers jump one red 
light in 10. That nn*gn$ goo 
million cars cross on yellow 
everyday. 

Almost Hke a Mediterra- 
nean city, said tire paper. 


■ James Morgan is economics 
correspondent of the BBC 
World Service. 


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