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FINANCIAL TIMES 




2 1 994 ^ 


Spreading plague Estonia’s bow doors may have been tom off in storm, Swedish authorities say New Haiti 

“ e ™mi UN watchdog to probe ferries SSL 

authorities struggled to contain the economic . “■* T£~*i A 

4 l a J t ■ l - r - M.. W..X. m •- ■ - m a - -.£* 4 . 1 .. .L: 1 L -1 _« . 1 .«J ... L ..4 4 .L- »■«-- I. 11 t_ 1 T- r ~ 1 *^. fiwilaw ■ > ■ C 


The In dian plague hilled two people in Delhi as 
authorities struggled to contain the economic 
threat posed by a growing number of overseas 
travel curbs. The first reported deaths outside 
Surat, where pneumonic plague broke out, pushed 
the official death toll over 50. The number of sus- 
pected plague cases rose to 2.500. Efforts to control 
the outbreak have failed to reassure overseas gov- 
ernments and visitors. Many Asian and Middle 
Eastern governments banned all flights to and from 
India. Page 22; Counting tbe cost. Page 3 

Bank provisions for debts backed: Leading 
international b anking supervisor Brian Quinn sup- 
ported banks' plans to even out tbe swings in their 
reported profits caused by sharp rises in provisions 
against bad debts in recessions. Page 22 

OECD appoints temporary head: Swedish 
ambassador Stafian Sohlman was appointed interim 
bead or the OECD yesterday. He will hold the post 
at the economic think thank until a new secretary- 
general is named or until November 30. Members 
are still undecided on a successor to Frenchman 
Jean-Claude Paye. 

Signal workers accept pay deal: Signal 
workers voted to accept the pay deal worked out 
between the RMT and Rail track by a majority of 
more than six to one. 

Fiat merger: Italian automotive and industrial 
holding company Fiat is to merge component sub- 
sidiaries Magnet! Mare ill and GilardinL Page 22 

French ex-premier in Aids scandal probe 





Ex-prime minister Laurent Fabius faced the 
media as he left court after being put under formal 
investigation for being “an accomplice to the poi- 
soning" of more than 1.000 haemophiliacs. Page 2 

MFC chairman to retire: Transport group NFC 
iu« amicuncrd that chairman James Watson is to 
retire. 10 reek* alter the surprise departure of its 
chief executive. Page 8: Lex. Page 22 

Manufacturing growth may slow: Hints that 
the acceleration in British manufacturing growth 
may slow slightly towards the end of 1994 of the 
year emerged in a business survey. Page 5 

Indian optimism on growth: Finance minister 
Manmohan Singh said the Indian economy has 
overcome the crisis of 1991. Page 3 

Palestinian CiUled: Israeli soldiers shot and 
killed a Palestinian, after he stabhed a soldier in the 
occupied West Bank town of Hebron, Israeli secu- 
rity' sources said. 

Man United profits double: FA Cup holders 
Manchester United revealed that profits have more 
than, doubled to £lQ.78m with extra income from 
merchandising, sponsorship and catering. Page 9 

Livestock shipping ban costs farmers: 

British fanners could lose up to £200m in trade a 
year when ferries ban the export of live animals to 
the Continent. Page 4 

Gesfetne? shares fall: Shares in office 
equipment company Gesietner fell after the com- 
pany announced a Eff.lm loss on interest rate 
swaps. Page S . 

Finlnves* predicts debt cut The media, stores 
and financir"' sen-ices group Fininvest, owned by 
Italian premier Mr Silvio Berlusconi, expects to cut 
its debt Kirden by a third. Page 9 

Me&dlsesellscfcaft winds up sale: A fire sale 
byXetaJigeseUsL'haft ended with the disposal of its 
F'/ankfurt headquarters. Page 9 

Swlfa Re sells non-core businesses: Swiss 
Reimurance is selling all its interests in primary 
insurance companies. Page 9 

WTL intensifies competition: Competition in 
tbb UB's long-distance telecommunications market 

5 th the launch of a network by NTL. 

shares fall: Shares in the sports 
ire wear group Hi-Tec Sports tumbled 
Pages 

to retire: Tbe Archbishop of York 
ood is to step down in August 


Companies’^ this issue 
Allen vV 9 Hue 

Ash & Lacy \ 8 Imil 

Attwoods \ 9 Irap 

Browning- Ferris I rids g 

Chesterton Inti v|fl Mar 

„ Mor 

Rat ’-A 

Fortnum & Mason 

Games Workshop c 

\®v 

Gesietner 8 ^ 

Halifax Building Soc B y 

Hl-Tee Sports 8 U 


9 Hughes (TJ) 

8 I mi lech 
g Inspec 
g Man (ED&F) 

_ Manchester United 
\ Morgan LoveH 

V 

Home Loans 
C vtoutt & Golman 


8 S=H*(Waiam) 
8 Urfortauare 


Pop customer service'^ 
other general! enquiries 

Frankfurt 
(69) 15685150 


m?.. 


By Kevin Brown «n London and 
Hugh Camegy and Christopher 
Brown-thanes in Stockholm 

The International Maritime 
Organisation, the United Nations 
agency for shipping, yesterday 
ordered a top-level inquiry into 
the safety of vehicle ferries fol- 
lowing the loss of more than 900 
lives in the Estonia disaster. 

The inquiry wa_ ann ounced as 
Sweden's National. Maritime 
Board said the Estonia may have 
sunk because its outer bow door 
was ripped off in a storm, allow- 
ing water to pour on to the ship's 
cavernous vehicle deck. 

It also emerged that the Eur- 


Japan and 
US close 
to accord 
on trade 


By Nancy Dunne in Washington 
and Philip Coggan in London 

US and Japanese trade 
negotiators yesterday headed 
into a final day of t alks to open 
Japan's markets to US goods and 
services, having achieved “big 
progress" on government pro- 
curement. 

A Japanese trade official in 
Washington said only one or two 
issues were outstanding in the 
dispute over Japanese govern- 
ment purchases of telecommuni- 
cations and medical equipment. 
He said these could be settled 
with the help of Mr Yohei Kono, 
Japan's foreign minister, who 
was arriving in Washington yes- 
terday afternoon. Agreement was 
also near on US access to Japan's 
insurance market. 

A Tokyo news report saying 
that the US and Japan had 

FT-SE 100 Index 

Hourly movements 

3,040 -- — — — -n 


a pa, one of the ships that picked 
up survivors of the Estonia trag- 
edy. si fered serious damage to 
its bow door in the heavy seas 
that lashed the rescue fleet. 

As concern about the operation 
of roll-on roll-off ships continued 
to mount, Mr William O'Neil, the 
1MO secretary-general, ordered a 
full safety review by the organi- 
sation's maritime safety commit- 
tee. 

IMO officials said the commit- 
tee would consider every aspect 
of roll-on roll-off shipping at its 
□ext meeting in December at the 
organisation's London headquar- 
ters. 

No agenda has yet been drawn 


up. but the committee is thought 
certain to consider whether bulk- 
heads on the ships’ open vehicle 
decks would help to increase sta- 
bility in the event of a surge of 
water through the doors. 

Most ship owners believe that 
bulkheads would reduce the prof- 
itability of roll-on roll-off ships. 
However, an IMO official said the 
review's "prime consideration” 
would be safety. "The travelling 
public are entitled to know that 
economic considerations come 
second." be said. 

The committee has the power 
to amend the 1981 international 
convention on the safety of life at 
sea, which provides the frame- 


work for national shipping legis- 
lation in 122 countries covering 
97 per cent of world tonnage. 

However, the committee is 
expected to produce a full report 
on the implications of the 
Estonia disaster before deciding 
whether to call a special meeting 
to consider changes to the con- 
vention. 

Mr Bengt-Erik Stenmark, Swe- 
den's head of maritime safety, 
said the joint Et toniaa f toiisli- 
Swedish team investigating the 
disaster bad been told by wit- 
nesses that the visor-style outer 
bow door was missing when the 
ship sank. “The outer door was 
lost,” he said. Mr stenmark said 


witnesses saw 3045cm of water 
on the car deck, enough to desta- 
bilise the vessel. 

Inspectors carrying out urgent 
checks of all roll-on roll-off fer- 
ries calling at Swedish ports said 
the port how door on tbe Europa, 
a 3,000-passenger ferry operated 
by the Sffja Line, suffered dam- 
aged hinges during the storm and 
could not be opened. 

The Europa, the biggest ferry 
of its kind sailing in the Baltic, 
was allowed to sail for Finland 

Continued on Page 22 
Channel tunnel's car shuttle 
launched, Page 5 
What future for ferry?, page 6 




Right and left unite 
to produce video on 
end of Thatcher era 


Yeltsin misses talks 


2,380“ : — ■ « 

26 SepW 30 

Scuroe: Reutar 

reached a deal on procurement 
helped the dollar climb briefly 
above Y99 yesterday, but official 
denials later wiped out some of 
the US currency's gains, which 
closed in London at Y98.97, up 
from Thursday’s close of Y98.505. 

Rumours of a deal helped the 
London equity market, which 
closed 33.8 points up at 3,026.3, 
also boosted by reports of a 
£100m buying programme from 
an investment bank. In New 
York, the Dow Jones Industrial 
Average was 18.16 points higher 
at 3.872.79 in afternoon trading. 

However, US and Japanese 
negotiators have been pessimistic 
about reaching a deal on cars and 
car parts. 

If no vehicle deal is reached, 
the US is expected to list car 
parts and flat glass under the 
so-called Super 301 provision of 
US law, as posing a barrier to US 
trade. If Super 301 is invoked, ths 
US and Japan have another 18 
months to reach a deal before 
trade sanctions are imposed. 


| By Lucy Kellaway 

There may be little love lost 
between the hard right and the 
hard left inside parliament, but 
outside they are joining together 
in the mutual pursuit of profit. 

Lord Tebbit. formed- chairman 
or the Conservative party, who 
was once described by Mr Mich- 
: ael Foot, former Labour leader, 
as “a semi house-trained pole- 
cat", has teamed up with an 
employee of Mr Tony Benn. the 
veteran leftwinger, to make a 
video about Lady Thatcher. 

Called No! No! No!, the video 
went on sale earlier this week. It 
chronicles Lady Thatcher's final 
year in the Commons and is 
directed by Ms Ruth Winstone. 
long-time editor of Mr Bonn's dia- 
ries. It is intended to "make 'em 
laugh and make ’em cry”, with 
famous clips including Sir Geoff- 
rey Howe s resignation speech 
and Lady Thatcher's own defiant 
performance after the vote of no 
confidence. 

No! Xu! No! is the first video 
since the Commons lifted its ban 
earlier this year on using its tele- 
vision footage for commercial 
purposes. A video of Mr Benn's 
top 10 moments since the cam- 
eras were allowed in to parlia- 


ment in 1989 was released last 
year as an experiment. 

"After making ‘the best of 
Benn’, Wedgie’s office thought 
'this is a great idea’. They real- 
ised that even hotter property 
than Tony is Mrs T." Lord Tebbit 
said. 

"1 was approached by these 
good leftwing socialists who had 
seen a market opportunity. They 
asked me to act as raconteur, and 
as I'm a great believer in encour- 
aging capitalism, I said yes." 

He said the video had been 
made on an "almost zero- 
budget”, and noted that they , 
would not need to sell many 
copies, which retail at £9.99, to 
make a profit. 

If No !No! No! - likened by 
Lard Tebbit to the CD of Nat 
King Cole's 20 greatest hits - 
does well in the charts it will be 
followed by other parliamentary 
releases. However, Lord Tebbit 
doubted whether any other MPs, 
Lady Thatcher and Mr Benn 
aside, were colourful enough to 
merit a "best or video, and said 
that future videos might concen- 
trate on debates rather than per- 
sonalities. 

Mr Charles Frater, director of 
Continued on Page 22 


Hie steps leading to the 
Russian presidential aircraft 
were in place. Dignitaries 
Including the Irish prime min- 
ister Albert Reynolds (second 
from right) were gathered to 
greet the's guest - but Presi- 
dent Boris Yeltsin failed to 
appear for official la Sts bi Dub- 
lin. 

After a 15-minute delay Ifr 
Reynolds and his entourage 


returned to the airport termin al 
accompanied by Oeg Soskov- 
etz, first Russian deputy prime 
minister, who stood in for Mr 
Yeltsin during talks which 
included the Ulster peace pro- 
cess. 

He said later Mr Yeltsin was 
“extremely fired" after Ms 17- 
how ffight to Ireland and unof- 
ficially he was said to be 
“uxfisposed”. 


By James Harding 
in Port-au-Prince 

Fresh violence broke out in the 
Haitian capital Port-au-Prince 
yesterday as a demonstration 
celebrating the expected return 
of Haiti's democratic government 
degenerated into a pitched battle, 

I leaving at least two reported 
dead. 

The fi ghting , after a grenade 
attack that killed at least five 
people on Thursday, marked a 
resurgence of the political 
clashes that threaten US efforts 
to restore democracy to the 
Caribbean nation. 

Yesterday’s confrontation 
erupted when paramilitaries 
loyal to the military regime 
attacked a crowd marching on 
the third anniversary of the coup 
that toppled elected President 
Jean-Bertrand Aristide. The inci- 
dents throw into doubt the capac- 
ity' of tbe US military, numbering 
19,000 troops, to guarantee civil- 
ians security far free political 
expression. They have also 
increased pressure on the US to 
pursue a more forceful disarma- 
ment of Haitian paramilitaries. 

The demonstration followed 
mass at Port-ao-Prince cathedral 
where Father George Amos 
called for reconciliation between 
tbe military loyalists and sup- 
porters of Mr Aristide. The mass 
was attended by Mr Robert Mai- 
val, Mr Aristide's nominated 
prime minister, who emerged 
from virtual hiding to sit in the 
fron t pew. Across toe aisle sat Mr 
William Swing, US ambassador. 

Tbe crowd followed toe official 
route for the demonstration 
agreed by Mr Aristide's liaison 
office and toe US military com- 
manders in Haiti, past the offices 
of Fraph, the Front for the 
Advancement and Progress of 
Haiti a nationalist militia friction 
loyal to toe military government 
of Lieutenant-General Raool Ced- 
ras. Fraph paramilitaries were 
understood to have thrown 
stones at and opened fire on tbe 
demonstrators, who took cover. 

The breakdown in law and 
order was echoed elsewhere in 
the city when another looting 
spree broke out at the dockside 
warehouses. Many observers 
have concluded that low-ranking 
officers of the police ami army 
have, unofficially relinquished 
their, responsibilities- 


ASIA PACIFIC i-CNDS 




j-'Wp. 




FT-SE 100: 3.026J 

Yield 4.18 

FT-SE Euroiracfc 1O0...15183 
FT-SE-A All- Share .. 1,51087 

MKKel 19.56X81 

New York: lunchtime 
Dow Jones I no Ave 3^68.76 
SSP Composite 484.75 


(+33.8) ■ US LUNCHTIME RATES 

Federal Funds: S 1 ;',# 

1-11 95) 3 ^, Tfeal BiUo. YW .... 4.77'.i 

£?; 7 £1 Long Bond 98=4 

W 3 > -iTeld 7-3l9 a i 

f+14.13) 

(+252) H NORTH SEA OK. (Argus] 

Brenl 15-day iNo.-i... S1S.955 


■ LONDON MONEY a COLD 

3-fiw Interbank 5“}% (same) New Von Corns... iDect. 3397.6 

UHe long git fut — Deo 99% (Oec99,^ Lontfsn ...S393.5 


O STERLING 

New Yorh lunchtime: 

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1^76 


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DM 

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12.4443) 

Frr 

5J491 

(5.3415) 

SFr 

20)309 

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Y- 

158.076 (155.7321 


1197.5) £ Indt, 7&J9 
i J35.£j 


■ DOLLAR 

New York lunchtime: 
DM 1.55078 
FFt 5-29175 
SFr 1.2378 

Y 98.95 
London: 

DM 1.651S <1.5481) 

FFt 52943 (5-2763) 
SFr 1-2078 (1-2827) 

Y 98-97 (98.505) 

S Index 62.1 (S2.0) 

Tokyo doge Y 98.59 


3 

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NOW WE'RF.tXPANDING 
IN ASIA, 






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'S^THE FINANCIAL TIMES LIMITED^ No 32,486 Week No 39 LONDON • PARIS - F3ASKFUR7 - NEW YORK - TOKYO 


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2 


NEWS; INTERNATIONAL 


★ 



FINANCIAL TIMES WEEKEND OCTOBER 1/OCTOBER 2 1 994 


Nato entry 
stalled for 
Visegrad 
countries 

By Bruce Clark in Sevflle 

The US, faced with strong 
Russian objections, has hacked 
off from the idea of putting 
four countries - Poland, Hun- 
gary, the Czech Republic and 
Slovakia - on a East track to 
full membership of Nato. 

The new US position 
emerged yesterday at an infor- 
mal meeting oF Mata defence 
ministers, where Germany's 
Mr Volker Ruhe received a cool 
response to his proposal that 
the four central European 
states, the Visegrad group, 
should be viewed as prime can- 
didates for entry. 

Mr William Perry, the US 
defence secretary, said it would 
be "entirely premature" to set 
a timetable for the expansion 
of Nato. Asked to sum up the 
discussion on new countries 
joining the alliance, Mr Perry 
said: “We certainly haven't 
specified who or when, and we 
are not likely to in the near 
future." 

Mr Ruhe has argued that 
Russia can never join the alli- 
ance, and he wants the 16 
existing members to agree as 
soon as possible on lists of 
nations which definitely can, 
and definitely cannot, become 
full members. 

However the US administra- 
tion, which received President 
Boris Yeltsin in Washington 
last week, has shied away from 
making rigid distinctions 
among its former Warsaw Pact 
adversaries, and this reluc- 
tance appears to have deep- 
ened in recent days. 

After a two-day meeting in 
Seville that was overshadowed 
by the conflict in the former 
Yugoslavia, Mr Perry disclosed 
that he was confident of more 
Russian help in isolating the 
Bosnian Serbs, and in ensuring 
that the border between Serbia 
and Bosnia was fully sealed. 

He said that according to the 
‘incomplete" reports available 
to Washington, Serbia had 
compiled only partially with its 
obligation to sever military 
and commercial links with its 
ethnic kinsmen in Bosnia. “We 
look to Russia as the govern- 
ment with the best communi- 
cations with the Serbs, to 
assist in the enforcement of 
this,” Mr Petry said. 

While Mr Perry made no con- 
nection between the issues of 
Bosnia and Nato enlargement, 
his comments on both matters 
suggested a greater US empha- 
sis, in the wake of last week's 
summit, on the idea of 
co-operation with Russia. 

Mr Perry predicted that in 
future any Nato air strikes in 
Bosnia would he carried out 
“with greater speed, with sur- 
prise and with more force than 
in the past". 

He acknowledged that Nato 
could not dictate to the UN 
grand commanders in Bosnia 
when to invoke the air power 
of the alliance. But under new 
procedures, he said, Nato pilots 
would have more freedom of 
action over targets and timing 
mice they had left the ground. 


UK-US proposal to increase international liquidity with SDR issue 

Boost for IMF members sought 



By Peter Norman, Economics 
Ecfitar, in Madrid 

Mr Kenneth Clarke, the UK 
chancellor, and Mr Lloyd Bent- 
sea, US treasury secretary, will 
this weekend press the deci- 
sion making body of the Inter- 
national Monetary Fond to 
agree to a UK-US plan that 
would allow the Fund to boost 
the monetary reserves or its 
member countries. 

The IMF's policy making 
Interim Committee will tomor- 
row consider British- American 
proposals to issue between 
i2hn and 16bn of the Fund's 
own reserve asset, the special 
drawing right, and so boost 
international liquidity by 
between $17.6bn (.Eilba) and 
$23i»bn. 

Although the plan would 
supply reserves to all IMF 
members, it has been struc- 
tured to confer special benefits 
on Russia and other former 
communist countries which 
have joined the IMF since the 
last Issue of SDRs in 1981, as 
well as poor developing 
nations. In this way, London 
and Washington hope to over- 
come German opposition to the 
idea of a general increase in 
SDRs and so solve a problem 
that has been dogging interna- 
tional financial diplomacy for 
several years. 

The Interim Committee 


meeting could see some tough 
bargaining, however, with Ger- 
many expected to argue that 
any SDR allocation should 
only benefit the recently joined 
IMF members. Yesterday, Mr 
Hans Tietmeyer, the Bundes- 
bank president, said there were 
“good reasons for being in 
favour” of a special allocation 
for new members. 

The UK-US proposals form 
part of a package of measures 
to increase the capacity of the 
IMF to provide financial sup- 
port for countries in economic 
difficulty. 

The Interim Committee will 
also consider an increase In 
the annual access limits of OAF 
members to fund resources to 
90 per cent from 68 per cent of 
their IMF quotas, or member- 
ship subscriptions, for three 
years. Also on the agenda is a 
plan to increase the use that 
former communist countries 
can make of the Fund's tempo- 
rary special "systemic transfor- 
mation facility” that was set 
up to help Russia and other 
ex-communist states develop 
market-based economies. 

The US-UR plan for the SDR 
allocation consists of an 
“equity” part to correct the 
injustice suffered by the 37 
countries that have no SDRs 
and a socalled “pro-rata” allo- 
cation to the entire member- 
ship. 


The plan will require a 
change in the IMF articles, 
necessitating the backing of 
members with 85 per cent of 


total quotas and parliamentary 
ratification in most countries. 
Ironically, these formidable 
hurdles give the plan some 


part a SDR issue if it is dear 
that It is a special one-off 
event. 

The Germans - hacked by 
the US and Britain - have vig- 
orously opposed proposals 
from Mr Camdessus, 

the IMF managing director, for 
a general issue of SDR36bn to 
all Fund members. These coun- 
tries argue that Mr Cam- 
dessus’s proposals, which 
would need - just 85 per cent 
support In the IMF board, are 
unjustified because there is no 
gibbal need for new liquidity. 

The pro-rata part of the 
UK-US plan is structured to 
allocate SDRs in two ways. 
Countries would either receive 
SDRs expressed as a percent- 
age of quota (20, 24 or 29 per 
emit are under discussion) or a 
percentage increase (possibly 8 
per cent) In their existing SDR 
reserves. 

British officials claim that 
this would give the low-income 
developing countries and for- 
mer communist states more 
SDRs than under Mr Cam- 
dessus's proposals. 

They said that under the 
UK-US plan. Russia and other 
former Soviet republics could 
expect to get SDRLGbn while 
low- and ffliiMto-itwima devel- 
oping countries would receive 
SDR-LSbn. 


SPD guns for Kohl with 100-day plan 


By Quentin Peel in Bom 

Germany’s opposition Social 
Democrats yesterday launched 
their final assault on Chancel- 
lor Helmut Kohl’s ruling coali- 
tion, two weeks and two days 
before election day, with the 
publication of a 100-day action 
programme to revive the Ger- 
man economy. 

It includes aD the top priori- 
ties in the party’s future gov- 
ernment programme, from job 
creation to equal rights for 
women, with a big tax reform 
package Intended to help the 
lower-paid. 

There was no sign of contro- 
versial plans to introduce a 


national speed limit, heartily 
disliked by the powerful motor 
industry. But, instead, it does 
include an ingenious scheme to 
give the owners of ageing 
motor cars a DM1,000 “scrap 
bonus” if they swap them for a 
new model, to revive vehicle 
production. 

The party brought out its 
three biggest guns to bombard 
the government yesterday with 
a plethora of proposals to boost 
demand, create new jobs, and 
redistribute the soaring tax 
costs of German unification - 
all intended to be under way 
within three months of taking 
office. 

Mr Rudolf Scharping, the 


Social Democratic Party (SPD) 
leader. Hanked by Mr Oskar 
Lafontaine, bis deputy and 
finance spokesman, and Mr 
Gerhard Schroder, his greatest 
rival and would-be economy 
minister, sought to galvanise a 
wilting German electorate into 
the final straight, just as the 
latest opinion polls show signs 
that the SPD is starting to 
close the gap on Mr Kohl's 
Christian Democratic Union. 

The 100-day programme 
would be launched by a round 
table of trade unions, employ- 
ers, and the German Bundes- 
bank, to design a new job cre- 
ation strategy as soon as the 
election is over, the SPD leader 


said. Over four years, he 
believes 2m new jobs could be 
created with a DM20bn pro- 
gramme, and another 700,000 
in new environmental 
schemes. 

As for the party's tax {dans, 
they would mean real reduc- 
tions for 80 per cent of the tax- 
paying population, at the 
expense of the highest income 
earners, he said. And families 
will get a big increase In 
monthly cash payments for 
each child, to replace the pres- 
ent system of tax allowances. 

“Everything we want to do 
in the first 100 days is intended 
to stabilise the economy,” Mr 
Scharping declared. 


The plans to boost car sales 
bear the inventive stamp of Mr 
SchrOder, the prime minister of 
Lower Saxony and supervisory 
board member of Volkswagen, 
who was Mr Scfaarping’s great 
rival for the party leadership . 

Not only is it intended to 
give a lift to the ailing motor 
industry. The “scrap bonus” 
plan, first floated by Mr Ferd- 
inand PLEch, VWs chief execu- 
tive, would appear to tom the 
old voters’ adage an its heed 
far from worrying whether 
they should buy a used car 
from Messrs Scharping; Schra- 
der and Laftmtame, they are 
simply being asked to sell 

them 


: i . : 

French ex-premier under investigation over Aids 


By David Buchan tn Paris 

Former prime minister Laurent Fabins 
was yesterday placed under formal 
investigation for being “an accomplice 
to the poisoning” of more than 1,000 
haemophiliacs who received transfu- 
sion s of Aids-contaminated blood up to 
mid-1985, when be was head of the 
French government 

The long saga of France’s Aids-blood 
case thus entered a new phase, as Mr 
Fabtus joined two of bis former soda! 
affairs and health ministers - Mrs 
Georgina Dufoix and Mr Edmond 
Herve - under investigation on the 
same charge of conspiracy to poison. 

Mr Fabins has denied knowing any- 
thing about the contaminated blood 
until the summer of 1985, when he 


ordered compulsory testing of blood 
donors for Aids. 

“I go into this Investigation with 
much compassion for those who foil in, 
and their families, and strongly deter- 
mined to establish the truth,” he said 
yesterday. 

The investigation by senior magis- 
trates, expected to take up to a year, 
could eventually lead to the three 
socialist ex-ministers going on trial 
before a special court of MPs, senators 
and judges. 

In 1989, the French state conceded 
general responsibility to tbe haemo- 
philiacs, some 400 of whom have since 
died of their infection, by deciding to 
give FFrlQO.OOO (£12.000) compensation 
each to survivors. This did not. how- 
ever, lessen pressure for more specific 


action to be taken against those run- 
ning the health service and its blood 
bank. 

Two years ago, two health officials 
were jailed for fraud for -distributing 
the tainted blood products. Out of this 
case came charges that the real cul- 
prits were government ministers, who 
foiled to beed the officials' warnings, 
but who could not be tried under ordi- 
nary French law. 

A move was made to impeach the 
ministers, but this procedure was held 
to be too self-serving because it gave 
the parliament then controlled by the 
Socialists, tbe role of bringing charges 
as well as judging them. 

Last year’s constitutional reform 
gave the haemophiliacs’ association the 
right to take their complaints against 


ex-ministers directly to a panel of 
senior magistrates, who will now 
undertake tike investigation. 

Mrs Dufoix has summed up the ex- 
ministers’ attitude in proclaiming that 
she is “responsible fin a political sense} 
but not guilty [of any crime]”. 

The investigation wfil centre on what 
the ex-ministers knew about the risk of 
Aids contamination, when they first 
received this information, and what 
they did to prevent the spread of infec- 
tion. 

One of the more serious allegations 
is that the government, or at least 
senior officials in it, deliberately 
delayed approval for the distribution in 
France of a US Aids test in order to 
protect the market for a similar French 
test then in development 


Cardoso ’ooks to help of ‘sovereign ruler’ 

Angus Foster on A\ the Brazilian governor who can deliver millions of presidential votes 



ACM: confidante to presidents of left and right a™#, 


T he letters ACM stretch 
across Brazil’s north- 
eastern state of Bahia, 
visible ou posters along each 
roadside and in every dusty 
village. They are the initials of 
Mr Antonio Carlos MagalMes, 
one of tbe country’s most influ- 
ential politicians, whom ene- 
mies call the “sovereign ruler” 
of Bahia. 

ACM is also one of the rea- 
sons Mr Fernando Henrique 
Cardoso, the former finance 
minister, is likely to win Bra- 
zil’s presidential election on 
Monday. An alliance with ACM 
has delivered Mr Cardoso sev- 
eral million votes in poor 
northern states, such as Bahia. 


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where he was unknown. 

“I had the courage to support 
Fernando Henrique when he 
had only 10 per cent in the 
polls. 1 don't have the vanity to 
say it was our support which 
will win him the election, it 
was also the Real plan,” says 
Mr Magalhaes in an interview, 
referring to Brazil's new Real 
currency, which has sharply 
reduced inflation. 

Mr Magalhaes is an old-style, 
populist leader who has spent 
40 of his 87 years in politics. He 
has been governor of Bahia 
three times and confidante to 
several Brazilian presidents of 
the left and right His influence 
in Bahia is so great that local 
politicians are known either as 
supporters called “carhstas” - 
because of his middle name - 
or "anti-carlistas”. 

He has grown rich from poli- 
tics but has maintained his 
popular touch, often wearing 
T-shirts with red, white and 
bhie stripes - the colours of 
the flag of Bahia. And he 
knows the proper greetings 
and dances for Bahia's can- 
doxnbli religion, developed by 
immig rant African slaves, even 
though he is a Catholic. 

“My power stems from my 
people because they know that 
I work for them.” he says. 
“When I pass by, people want 
to hug me and kiss me. You 
won’t see any other politician 
like that.” Once again, Mr 
Magalhaes is seeking public 
office. This time, he is standing 
for the senate and he has 60 
per cent support in the polls. 

Mr Magalhaes 1 opponents, 
however, say he has been in 
power too long. They point out 
that he nominated more than 
half the state's judges during 
his terms as governor, in the 


state's legislative assembly, 42 
of the 63 members support 
him. In the federal legislature, 
30 of Bahia's 39 representatives 
are members of the political 
party he controls, the Liberal 
Front (PFLX 

Following a controversial 
decision while he was minister 
of communications, he gained 
Bahia's five main broadcasting 
concessions for TV Globo, Bra- 
zil's most popular station. He 
and allies are also alleged to 
control 56 radio stations in the 
state. And opponents claim TV 
and radio are often used 
against them. Says Mr Jaques 
Wagner of the left-wing Work- 
ers' party. “If you oppose him, 
you are dead politically.” 

During elections. Mr Magal- 
haes’ electoral matjuinc or 
machine is almost unbeatable. 
His only serious defeat, in 1986, 
came after the opposing party 


introduced another new cur- 
rency. taking votes from him. 

Mr Magalhaes’ hold over 
Bahia is a situation common to 
many other states in Brazil's 
north-east, the country's poor- 
est and most depressed region, 
where politics depends on 
patronage. The mayor of a 
small town lacks sufficient 
resources to build schools or 
hospfta/s and thus needs the 
support of the state's governor. 
In return the mayor is expec- 
ted to use his influence to 
deliver his town's votes. 

At a weekend election rally 
in the town of Jequie in Bahia, 
the local mayor spent about 
five minutes of his speech 
thanking “ACM" for help with 
various construction projects. 
He then told the several thou- 
sand people to vote for Mr Car- 
doso as president, ACM for the 
senate and ACM’s candidate 


for governor, Mr Paulo Souto. 
ACM waved each time his 
name was mentioned. 

The voting process is not 
always fair. Six Bahia districts 
were recently found to hare 
more registered voters than 
inhabitants. The ballot papers 
of people who have moved 
away or died are held by local 
leaders. One common practice 
is the “ant vote", where voters 
copy the choices of the person 
in front and pass them on to 
the person behind, rather like 
ants at work. In return, they 
are paid a small sum of money, 
given food or sometimes steril- 
ised for free. 

Not that such practices are 
uncommon, in Brazil. Indeed, 
they are used freely by Mr 
Magalhaes’ opponents. What 

distinguishes Mr Magalhaes is 
that he is better at using the 
system to retain power. 


Under Brazil's election rules, 
each candidate is given free TV 
time every night. But oppo- 
nents often find their time 
reduced because Mr Magal- 
hdes, fliiq rin g be has been mis- 
represented in an earlier pro- 
gramme, is granted a “right of 
reply” by election authorities. 

Mr Jutahy MagalMes, a can- 
didate for governor and no 
relation, says his TV pro- 
gramme has been interrupted 
10 times but he has only won 
one right of reply in return. 
“ACM hag the backing of the 
Federal government, the state 
government, the justice system 
and the election authorities, 
ft's total control,” he says. 

ACM denies any influence 
over tbe justice or election 
authorities and says he wins 
more rights lof reply because 
his opponent! “lie and distort” 
the truth. 1 

He says helaims to fight for 
Bahia when! he reaches the 
senate. But most observers 
think he bas| wider horizons. 
With his power base he is 
likely to be a key figure in 
Congress - especially since his 
son, Luis Edurido MagalMes, 
is a front-runner to be elected 
president of the! lower house. 

Some observers think Mr 
Cardoso's very different back- 
ground as a left-wing academic 
will create probjems between 
the two men. < Some have 
suggested Mr Cardoso will fry 
to break with Mr Magalhftes 
once he is president But oppo- 
nents of BCr MagalMes in 
Bahia, several of whom used to 
be allies before breaking ranks 
for personal or political rea- 
sons, caution that he is a dan- 
gerous man to betray. “Some 
of us still don't sleep well, even 
years later,” according to one. 


INTERNATIONAL NEWS DIGEST 

US income up 
for seventh 
straight month 

Personal income In the US rose 0.4 per cent in August, the 
seventh straight monthly increase, but felled to keep pace 
with a 09 per cent jump in spending, the government said 
yesterday. The spending increase was the largest since it rose- 
by L3 per cent in February. The Commerce Department also 
reported (hat disposable income income after taxes - rose 
0.5 per cent in August Financial markets were mixed an the 
news. Treasury bond prices fell slightly, and the Dow Janes 

; industrial average slipped 6 points before recovering by late 
morning. The spending increase was greater than many ana- 
lysts expecte&wtth. During July, personal income increased 0-5 
per cent, while spending rose 0.8 v& cent fncome last fen in 
January, when it slipped 0.6 per cent Consumer spending, 
which, accounts far two-thirds of the nation's gross domestic 
product was up for the fourth straight month and six of the 
last seven. Tbe onmhmqfrnn of incomes and spending meant 
that Americans' savings rate - savings as a percentage of 
disposable income - was 3.8 per cent in August compared to a - 
revised 42 per cent the previous month. The Commerce 
Department previously pegged the savings rate at 41 per cent 

| for July. AP, Washington 

\ Chechnya accuses Moscow 

| The breakaway Caucasian republic of Chechnya accused Rus- 
sia of open aggression against a sovereign state as unidentified 
helicopters attacked the airport in Grozny yesterday morning 
inflicting several casualties. Chechen officials threatened to 
wage a terrorist war against Russian cities unless the provova- 
tion ceased, according to local newsagenefes. Chechen oppose 
tian forces, winch have been overtly backed by Moscow, were 
also reported to have issued an ul tim a tu m that they would > 
storm the capital unless Mr Dzhokhar Dudayev stood, down as 
president yesterday. But in an interview with the Itar-Tass 1 
newsagency, Mr Dudayev denied he had received any ultima- 
tum and Grozny was reported to be ealm yesterday afternoon. 

John Thornhill, Moscow ' - 

Kiev doubts on IMF deal 


Mr Vitaly MasoV Ukrainian prime minister, cast a shadow 
over Ukraine's eomniitmfait to radical reform only, hours after 
the International Monetary Fund agreed to provide economic 
aid thin year. The prime minister, a former communist who 
fovours gradual reforms but was persuaded by President Leo- 
nid Kuchma to s ign the IMF deal, said on Thursday night the 
IMF programme “contains issues parliament most rasolra” 
Although the government is formally committed to reform, he 
said, “there are questions in the document still to be derided.” 
The success of Ukrainian reform depends on Mr Kuchma's 
ability to overcome opposition from forming and industrial 
lobbies well represented in parliament and the cabinet of 
ministers, which Mr Masol heads. Matthew Kaminski, Kiev 

Belarus reform supported 

Belarnssia’s President Alexander Lukashenko yesterday won 
parliamentary support for a radical economic reform pro- 
gramme, but deputies resected b is hid .for additional powers to 
carry it out. Inflation in Belarus remains above hyperinflation 
levels - at S3 per cent last month. Parliament voted 19&5 in 
favour of the “anti-crisis” programme Mr Lukashenko said 
was necessary to pull the former Soviet republic out of eco- 
nomic collapse and secure loans from international fimm trial 
institutions. Reuter, S/Snsk 

North Korea in nuclear offer 

North Korea has made new proposals in. talks with the US to 
resolve the dispute over Pyongyang’s nuclear programme, a 
North Korean foreign ministry official said yesterday. Mr Ho 
Jong said his delegation had “put on the table very construc- 
tive and interesting ideas to quicken the solution of the 
issues”. He refused to elaborate Mr Robert GaUucri, the US 
chief negotiator, flew back to Washington yesterday for con- 
sultations, but will be returning to meet Ms North Korean 
opposite number, Mr Kang Sok-ju. next Wednesday. In the 
mean t ime, technical discussions are continuing. Before leav- 
ing, Mr Gattucd said there had been no substantial progress in 
the previous week of talks but both rides wished to continue. 
Frances Williams, Geneva 

RR ponders Korean ventures 

Rolls-Royce, the UK aeroengine and industrial power group, 
yesterday signed an agreement with the Korea Aerospace 
Research Institute to study possible joint collaboration in 
aeroengine programmes.The move coincides with a fierce 
competition between Rolls-Royce and its US rivals. General 
Electric apd Pratt ft Whitney, to win a rigmftcant order to 
supply engines to power the new twin engine We-fcody air- 
craft fieri of Korean Air Lines. The Korean flag carrier Is 
expected to decide by early next year its choice tf engines to 
equip the 30 Boring 777 and Airbus A338 twin-eogbe airliners 
it has on firm order and option. Korea Is also interested in 
developing with other Aslan partners a new lOO^eatV^orud 
Jet. PauI3etts,Aerospace C orres ponded ^ 

GM reaches deal with union 

General Motors and the United Auto Workers union said Ifxy 
had reached tentative agreement over a -dispute which 
threatened to halt much of the company's North 
production. The dispute, over the company's reluctance i 
more permanent workers as its out p ut' has risen in 
months, had led to a walk-out at a parts plant in.1 
Michigan, on Tuesday. This in turn forced a halt at a i 
of the company’s production lines, affecting 22^00 
afl. UAW members will vote cm it today. Rtcfyzrd- f 
York 

French unemployment up 

Unemployment in France rose I530Q to 0Atsa./ AB ^ t ' 
offeetting the improvement of tire- previous 
according to statistics published by the lahoui3f I ~~ y ‘ „ 
Miohd Gfraud, the labour minister, increase, 

which left the overafluiieanploymentrateat i#*® - as a 
“hitch along the .way”. He said that the 
ploymentahead of presidential elections 
uneven process. The centre-right gover 
ter Edouard BaDadur is counting on' 

Edmond Alphandfiry, the economy i 
that between 260,000 and 300,000 jobs 
John Ridding , Paris 

Peru takes on shin^rf^ 



^•created in 1995. 


Peru's government will have 
long-standing obligation with 
Express Bank, according to a T 
recognise the debt baa been tf 
of Fern's f&5bn commercial j 
to stand at around $72m i 

to 1981 when US banks 
purchase of two cargo 
line. 

SaOy Bowen, Peru 


Vbdntroverrisl and 

Bank «nfl Amortom 

this week. Failure to 

dbstabfe to renegotiation 
■.debt. .The .debt, thought 
‘ tod interest, dates back 


Canada toM 1 ^ rail sell-off 


The Canadian 
to investigate 
Canada's two 
about 

Canadian, 
corporation.. 


CffiJfon, 


has set npa. p ar liame nt ary group 
stisatian. of^CN £forth Amm-im, one af 
•CN; wath assets of 
“V scting snbaifoary of 



> L”. ;i \U Vtoiwi. rfv i 






FINANCIAL TIMES WEEKEND OCTOBER 1 /OCTOBER 2 1994 


3 


Indian food exports 
hit by plague panic 


By Stefan Wagstyi in New 
Delhi 

India's businessmen were 
yesterday counting the grow- 
ing economic cost of the 
plague, with tourism and food 
exports the two sectors hardest 
hit. 

The disease, which has killed 
about 50 people and left 2,000 
others sick, has disrupted the 
travel trade and exports. 
Hotels and tour operators, 
gearing up for the start of the 
tourist season, have reported 
cancellations by groups from 
Europe, the Far East and 
North America. Some business 
visitors have cancelled trips. 
At least three trade fairs have 
been postponed. 

Trade with the Gulf states, 
worth S3bn a year, has been 
badly hit by the decision by 
Gulf governments to close air 
and sea links with India. The 
biggest tznpact is on exporters 
of fresh food, who rely on the 
Gulf for 70 per cent of their 
overseas sales. 

Food exporters are having to 
cancel purchases, put produce 
in store or try to sell domesti- 
cally. “After three years of 
effort in promoting exports we 
are back at square one." said 
Mr Gian Nega, assistant direc- 
tor of the Agricultural and Pro- 
cessed Food Products Export 
Development Authority. Fresh 
food exports to the Gulf last 
year totalled Sl77m. 

Health officials, including Dr 
N K Shah, the resident repre- 
sentative of the World Health 
Organisation, accused the Gulf 
countries and other states 


Bombay SE index 
5.000 - 



1983 1994 

Sowca: FT GraoHte 

which have cut trade links of 
over-reacting. The Indian gov- 
ernment launched a publicity 

cam paig n aimed at calming the 

fears of tourists, business trav- 
ellers and importers of Indian 
goods. Mr T Khanna, the com- 
merce secretary, expressed 
concern at the potential dam- 
age to Indian trade. “There's 
been a panic reaction from 
some of our trading partners. 
But I believe it will soon blow 
over.” 

Speaking in London, Mr 
Manmohan Singh, the finance 
minister, said the countries 
which had imposed restrictions 
on travel and imports risked 
hampering efforts to deal with 
the problem. 

“We are trying to create an 
atmosphere where people have 
confidence that plague is no 
longer an incurable disease,” 
he said. “Creating an atmo- 
sphere of panic which drives 
the whole thing underground 
would do a great disservice to 


both India and the outside 
world,” he said. 

An official of ELM. the 
Dutch airline, in Delhi said 
much barm had already been 
done. “The whole image of 
India has already been 
affected.'’ He estimated 25-30 
per cent of tourists who had 
planned to travel to India by 
ELM tins week and next had 
called off their trips. Other 
European airlines, including 
British Airways. Lufthansa 
and Swissair, also reported 
cancellations by tourist 
groups. 

Yesterday’s most serious 
development in the spread of 
the plague were the deaths of 
an 18-year-old man and a five- 
year-old boy in Delhi. They 
were the first deaths outside 
the western city of Surat and 
its neighbourhood, where 
pneumonic plague erupted last 
week. The tally of suspected 
cases rose by about 700 yester- 
day to 2,500, mainly in Surat 
and in remote eastern Mahar- 
ashtra, where bubonic plague 
broke out a month ago. 

• India’s exports in August 
were $2.11bn, some 24.6 per 
cent higher than the same 
month last year. This followed 
four months of sluggish perfor- 
mance which gave rise to con- 
cern about future prospects. 
Figures published yesterday by 
the commerce ministry showed 
exports in the five months to 
August were 10.6 per cent up, 
compared with 8,3 per cent for 
the four months to July. But 
the growth rate is still below 
the annual target of 15 per cent 
or more. 


NEWS: INTERNATIONAL 

Tribals I 
win Jong 
autonomy 
struggle £ 

By Gordon Gramb in Patna 


THE UNIVERSITY OF JORDAN! 


Singh predicts growth of 
7% through the 1990s 


By Peter Montagnon 

India ’s economy has overcome 
the crisis of 1991 and can look 
forward to sustainable growth 
of 6 to 7 per cent in the second 
half of the 1990s, Mr Manmo- 
han Singh, finance minister, 
said in London yesterday. 

“We have been essentially in 
the business of crisis manage- 
ment. This year that phase is 
broadly over.” he said. 

Mr Singh, in Europe for the 
annual meetings of the Inter- 
national Monetary Fund and 
World Bank, was at pains to 
rebut charges that the pace of 
economic reform was slowing. 
Except for a setback in curbing 
the fiscal deficit, reform had 
gone “broadly at the pace that 
we said we would go." 

For example central govern- 
ment would continue with its 
privatisation effort. The 
so-called Rangarajan report of 
a committee set up by the gov- 
ernment and the Reserve Bank 
had recommended central gov- 


ernment should reduce its 
stake in public sector compa- 
nies to as low as 26 per cent in 
some cases. Current rales call 
on the government to maintain 
a 49 per cent stake in compa- 
nies which are privatised. 

Mr Singh said this report 
had not yet been discussed by 
the cabinet, but he sympath- 
ised with Its conclusions. “We 
need a bolder programme of 
disinvestment in order to 
reduce the burden of interest 
charges." 

India also expected to intro- 
duce legislation on trade union 
reform within two years and 
make the rupee convertible on 
the capital account by 1996 or 
1997. It would stand by its 
plans to remove quantitative 
restrictions on imports of con- 
sumer goods within the next 
three years. 

Such protection encourages 
excess domestic production of 
consumer goods as opposed to 
investment goods and diverts 
foreign investment to the 


wrong sectors, he said. 

Mr Singh acknowledged that 
his medium term expectations 
were for a growth rate no 
higher than India achieved in 
the 1980s and lower than that 
anticipated for China. But he 
said India's earlier growth had 
been unsustainable because it 
depended too heavily on bor- 
rowing. 

As for China, its economic 
statistics needed greater scru- 
tiny. There was a possibility 
that they overstated growth 
while China could manage 
with a higher rate of Inflation 
than India. 

This year the Indian econ- 
omy should grow at more than 
5 per cent The inflation rate 
should fall back to about 7 per 
cent from more than 8 per cent 
at present. Though export 
growth had slowed, the current 
account deficit would remain 
small and the budget deficit 
should be held to 6 per cent of 
gross domestic product 


Jharkhand, a mineral-rich 
region of Bihar, India's second 
most populous state, is to be 
granted wide autonomy, mark- 
ing a breakthrough in a 50-year 
straggle for self-determination. 

An agreement this week 
between the central govern- 
ment and the state of Bihar, 
provides for establishment of 
an autonomous council in 
J harkhand, the southern half 
of the state. 

It is by far the largest Indian 
region to be granted such sta- 
tus; most previous cases have 
involved small pockets of tribal 
land. In a campaign which pre- 
dated the end of the British 
Raj, a separate identity for 
Jharkhand had been sought by 
the area’s aboriginal peoples, 
but backing bad also come 
from some industrial houses. 

They argued that the Bihar 
adminis trati o n, based in Patna, 
the state capital to the north, 
had long neglected their needs 
while reaping tax benefits from 
their activities. 

Successive state govern- 
ments of different political 
hues are said to have built a 
bureaucracy on the back of 
revenues from mining and 
industry, almost entirely con- 
centrated in Jharkhand, while 
Bihar is India’s poorest state. 

The estimated 40m people of 
Jharkhand will now gain their 
own assembly, with Bihar enti- 
tled to nominate 10 per cent of 
its members. The new entity is 
expected to control sectors 
such as agriculture, education 

and h ea lth 

Northern Biharis appear rec- 
onciled to the break, which 
some see as a prelude either to 
full statehood for Jharkhand or 
it turning into a union terri- 
tory dealing direct with Delhi. 

A Bihar government official 
said the tribal south had long 
enjoyed special status and 
state income would not be 
affected. But the move may 
encourage further development 
in Jharkhand, which apart 
from coal, bauxite and copper 
has a prime deposit of mica, a 
substance with applications in 
computer technology. 


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Pachinko gamesters defy tax bait 


By William Dawkins and 
Kuniko Kurimura In Tokyo 

Japan's national police force 
has lost a campaign to tempt 
more operators of the coun- 
try's pachinko game industry 
to accept the virtues of paying 

tax. 

The National Police Agency 
reports it is making little head- 
way with its Lactic or introduc- 
ing tax-assessable pre-paid 
game cards, an attempt to per- 
suade pachinko parlour owners 
to divulge earnings. 

The government's recent tax 
reform, partly intended to bol- 
ster the tax base, is therefore 
likely to leave untouched a 
rich source of revenue. 

Pachinko, an addiction for a 
quarter of Japan’s population, 
.is a recession-proof mixture of 
Wall and gambling. It has an 
feimated annual turnover of 
%L500bn. (El.l3bn>. Players 
bjt handfuls of ball-bearings. 


fed into pinball machines and 
spat out again in greater or 
lesser amounts, regulated by 
computer. 

Metal balls are exchanged for 
prizes or sold for cash, con- 
trary to a Japanese law against 
gambling for money. The balls 
are sold at neighbouring shops, 
whose ownership is tied to the 
pachinko parlours. 

The parlours are often 
owned by North Korean immi- 
grants. who send a popularly 
estimated Y60bn-Y80bn a year 
back to relatives in Pyong- 
yang. Failure to crack the 
problem has not only cost 
the government tax revenue, 
but caused diplomatic 
embarrassment over this 
unintended subsidy to an 
unfriendly regime. 

Japan’s police force chose a 
tactful line. Taking a heavy 
hand to pachinko would have 
invited the anger of the 
gangsters who protect this and 


other fringe industries. As has 
been shown in recent weeks 
some of these gangsters have 
alarmingly light trigger fin- 
gers. 

At the turn of the decade the 
police agency informally pro- 
moted the development of two 
producers of pre-paid pachinko 
cards and vending machines. 
Nihon Leisure Card and and 
Nihon Game Card, both 
chaired by former police offi- 
cers. 

The aim was to enable tax 
authorities to guess individual 
pachinko operators' sales and 
income by the number of pre- 
paid cards they purchased, 
according to a report in the 
latest issue of the weekly mag- 
azine, Aera. 

Since starting business in 
1990. the two groups hare 
installed systems In just over 
3.000 out of Japan's 18,000 
pachinko parlours, making a 
tidy profit. Police gave new 


pachinko owners operating 
licenses in half the usual time, 
in return for a promise to 
install a card system, 
according to Aera. Existing 
operators, showing deference 
to the police, bought systems 
in the interests of '•modernisa- 
tion'. 

The hitch was that parlours 
continued to sell balls for cash, 
alongside prepaid cards. 

In despair, the police agency 
asked the finance ministry to 
offer tax reductions to pach- 
inko parlours that were pre- 
pared to come clean and use 
pre-paid cards exclusively. The 
ministry, which has never 
shared the national fondness 
for a flutter in the pachinko 
arcade, refused. 

It goes to show that remov- 
ing some of the constraints on 
the Japanese economy can be 
longer and trickier than it 
might at first appear. 


Murayama urges action 
to reduce unemployment 


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By William Dawkins 

Mr Tomiichi Murayama. 
Japan's prime minister, 
yesterday called for steps to 
fight unemployment, which 
remained stuck at a seven-year 
high of 3 per cent in August for 
the second month running. 

He made his appeal at the 
first meeting of labour 
ministers since the 
government took office in 
June. 

The Economic Planning 
Agency said it would advance, 
by a month to early October, 
details of a scheme to expand 
the government's Y430.000bn 
(£3.27bn) public works scheme, 
covering the decade to 2W0. 


The latest unemployment 
report suggests that the labour 
market will continue to be 
weak through the early 
stages of Japan’s economic 
recovery, warned government 
officials. 

The number of jobs available 
for every 100 job seekers rose 
slightly from 62 in July to 63 
last month, but was still low 
for a country that agonised 
over a labour shortage only 
five years ago. 

Most economic analysts 
expect the jobless rate to 20 on 

rising gently into the recovery, 
because the yen's strength 
continues to put pressure on 
exporters to cut costs to bring 
them closer into line with 


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An elderly man is taken past a dragon sculpture in Tiananmen Square during preparations for today's National Day celebrations. 
Beijing’s rulers, although breathing fire internationally, are not as confident about the domestic situation hm* 

China applauds the past as it 
looks to life without Deng 

Beijing celebrates 45 years of communism, while the health of its 
most radical economic reformer is failing fast, says Tony Walker 


C hina today celebrates 
the 45th anniversary of 
the Communist revolu- 
tion in the shadow of the deter- 
iorating health of Mr Deng 
Xiaoping, the senior leader, 
and burdened by worries over 
rising prices. 

But the country's top offi- 
cials are seeking to ensure 
these concerns do not spoil the 
anniversary celebrations that 
are being conducted with an 
intensity that seems out of pro- 
portion to the occasion. 

Among planned displays are 
mass choral concerts in which 
thousands of voices will be 
raised in patriotic songs of a 
bygone era. China's rulers, it 
seems, are delving into the 
past to validate the present 
Preparations have been 
under way for months and 
were given a political focus by 
this week's meeting of the 320- 
member Central Committee, 
which approved a blueprint for 
revitalising party institutions. 

The document, with the 
numbing title of “The resolu- 
tion on strengthening grass- 
roots party organisation", was 
hardly the most self-confident 
declaration by the world's larg- 
est mass political organisation. 


Its emphasis on bolstering 
party institutions in this 
uncertain transitional phase 
from one generation of leaders 
to the next, revealed deep- 
seated concerns about the 
future at a time when the com- 
munist party's prestige is at a 
low ebb. But for today at least, 
China’s leaders will be at pains 
to deflect attention from the 
shortcomings of the ruling 
party and personal hardship, to 
the mass celebrations In Bei- 
jing- 

China’s attention will focus. 
as it has so often in the past, 
on Tiananm en Square, where 
100,000 people from across the 
country will participate In 
“flag waving" events to mark 
the anniversary. 

Official propaganda has 
sought, in the build-up to 
national day, to remind people 
of their increasing prosperity 
and to link this with Mr Deng's 
legacy. A campaign to lionise 
China's ailing senior leader 
has moved into higher gear. 

In Bejjing, a photographic 
exhibition of Mr Deng’s life has 
been mounted at the Museum 
of Revolutionary History on 
Tiananmen Square; laser discs 
of his speeches are being mar- 


keted; and news commentaries 
have been trumpeting his con- 
tribution to the revolution. 

Praise for Mr Deng’s theory 
of “building socialism with 
Chinese characteristics", a 
phrase that means almost any- 
thing goes, is the slogan of the 
moment. Party documents 
malfp scant mention of ideol- 
ogy these days beyond pro- 
forma references to the party’s 
Marxist underpinnings. 

Mr Deng’s dire warnings that 
China would be “ripped asun- 
der" unless it adhered to the 
“four cardinal principles” now 
appear a faint echo of the past 
China, he had said, should res- 
olutely adhere to the socialist 
road, the people's democratic 
dictatorship, the leadership of 
the party, Marxism -Lenin- 
ism Mao thought 

Emphasis given to Mr Deng’s 
reformist role has fuelled spec- 
ulation about his possible early 
demise. Attempts to reinforce 
his legacy in the public mind 
are seen as part of enhanced 
preparations for his death. 

China’s senior leader last 
appeared in public when he 
was shown on television visit- 
ing Shanghai earlier this year. 
He was extremely frafl. and his 


health is said to be rantinuing 
to deteriorate. Unconfirmed 
reports circulated in Beijing 
this month that he had been 
c ommit ted to hospital. 

But while China might be 
exhibiting unease about its 
leadership transition and diffi- 
culties managing its economic 
transformation, it is showing 
no such diffidence in its for- 
eign relations. Since the US 
renewed China's Most 
Favoured Nation trading sta- 
tus in May, Beijing has gone 
on the offensive. 

It has toughened its position 
in the row with Britain over 
Hong Kong, taken Japan to 
task for the invitation 
extended to Taiwan’s President 
Lee Teng-Hui to attend this 
month's Asian games in Hiro- 
shima. and sharply criticised 
the US over its decision to 
make small changes in the way 
It deals with Taiwan. 

A mood of self-congratula- 
tion was certainly reflected in 
a commentary published this 
week by the official Xinhua 
news agency. “China has made 
brilliant achievements in diplo- 
macy over the past 45 years,” it 
quoted a vice foreign minister 
as saying. 


Liu spells out reform programme 


By Peter Norman In Madrid 

China plans to accelerate 
economic reform with the aim 
of establishing a “socialist 
market economy" by tbe end of 
the century, Mr Liu Zhoogli, 
Chinese finance minister, said 
in Madrid yesterday. 

Mr Liu told an International 
Monetary Fund and World 
Bank conference, that the Bei- 
jing government’s priorities 
were to establish modern 
enterprise systems and speed 
the reform of macro-economic 
management “in fiscal, taxa- 
tion. financial and investment 
areas". 

He said China would estab- 
lish a legal framework for a 


modern market economy to 
govern and regulate the new 
corporate culture. China would 
also take steps to control infla- 
tion and maintain stability. 

Mr Liu pledged to step up 
China’s exchanges with coun- 
tries abroad. “Opening up to 
the outside world constitutes 
an integral component of our 
reform programme," he said. 

Mr Ltu acknowledged that 
China was still In transition 
from tbe old highly centrally 
planned system, which was 
“deficient in discipline and 
risk-containing mechanisms”, 
to one in which market mecha- 
nisms played the dominant 
role in allocating resources. 

“We envisage that by the end 


of the 1990s a socialist market 
economy will, by and large, 
have been established, which 
will develop into a mature and 
stable system in another 20 
years or so.” 

Mr Liu's comments marked 
the first time a senior Chinese 
official had spelled out to an 
international audience China's 
plans to speed reform. They 
were seen as likely to boost 
confidence among interna- 
tional investors who last year 
poured more than $20bn 
(£l2.6bn) in direct Investment 
into China, waiting it the larg- 
est single recipient of foreign 
direct investment in the devel- 
oping world. 

Senior World Bank officials 


also gave China a vote of confi- 
dence yesterday when they dis- 
closed that the bank, which 
committed more than $3bn to 
China in regular and conces- 
sional loans last year, could 
continue lending at this rate 
for five or 10 years. 

Mr Nicholas Hope, director 
of the World Bank’s Ojixia and 
Mongolia department, said the 
bank had three priorities in 
China: to help Implement its 
reform programme; ease infra- 
structure bottlenecks, espe- 
cially in the power and trans- 
port areas; and to help in the 
plan to eliminate absolute pov- 
erty, afflicting 80m people, by 
the year 2000. 


Opposition snubs 
Japan’s premier 


BUSINESS GIFTS 


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international competitors. 

That conclusion was 
supported yesterday by a 
labour ministry survey of 
manufacturers, in which 
more than 40 per cent 
of companies which were 
shiftier production overseas 
expected to cut Japanese staff 
s s a result. 

The risk of deflation still 
remains, according to another 
set of statistics released 
yesterday, showing that 
consumer prices in Tokyo rose 
by a mere 0.1 per cent in the 
year to September. The trend 
is for prices to stagnate, 
reckons the government's 
management and coordination 
agency. 


By William Dawkins 

Japan's new opposition group 
yesterday boycotted prime 
minister Tomiichi Murayamn’s 
address to tbe opening session 
of parliament, tbe first such 
snub in 28 years of Japanese 
politics. 

Undeterred. Mr Murayama 
outlined his three-month-old 
government's policies to his 
opponents' nearly empty 
benches, completing the politi- 
cal and tax reforms started by 
.'be opposition parties during 
their tenure in power for 
nearly a year until June. 

He aims, during the 65-day 
parliamentary session, to enact 
a bill to redraw Japan's unique 
multi-seat constituency- bound- 
aries, replacing them with 
small single seat boundaries, 
plus regional seats to be 
chosen by proportional repre- 
sentation. 

This will be the final touch 
to the political and electoral 
reforms which have dominated 
the government's time Tor 
much of the past year. 

Also on the new govern- 
ment's agenda is the enact- 
ment of a recent package of 
income tax cuts with a subse- 


quent increase in consumption 
tax. civil service spending cuts, 
and pensions reform. 

Renovation, the newly 
formed voting bloc of nine 
opposition groups, gave as its 
reason for boycotting Mr 
Murayama’s speech the gov- 
ernment’s refusal to select a 
member of the opposition as 
deputy speaker of the lower 
house. 

Renovation also wanted an 
80-day rather than 65tiay par- 
liamentary session. 

Opposition officials promised 
to give the government a “tur- 
bulent " parliamentary session, 
starting with questions to the 
prime minister next week. The 
government, however, with Its 
38-seat majority, appeared con- 
fident of being able to hold 
power for its full term. 

Mr Keizo Obuchi. vice presi- 
dent of the Liberal Democratic 
Party, the dominant member of 
the ruling coalition, said yes- 
terday that autumn 1997 would 
be tbe best time for the next 
general election. 

The opposition, by contrast, 
wants an election soon after 
the new constituency bound- 
ary bill is enacted- 





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5 UK 


IBA sets up 
telecoms 
network arm 


By Andrew AdonJs 
and Raymond Srtoddy 

Competition in the hotly 
contested long-distance tele- 
communications market inten- 
sified yesterday with the 
launch of a new network by 
NTL. the privatised transmis- 
sion arm of the former lode 
pendent Broadcasting Author- 
ity. 

NTL said it would undercut 
existing operators British Tele- 
communications and Mercury 
by about 20 per cent. 

In effect NTL will provide 
wholesale trunk capacity for 
existing telecoms operators or 
large corporate customers. Its 
network, comprising micro- 
wave radio links between all 
the main population centres, is 
the second to be launched this 
week following the start of ser- 
vice by Energis, the telecoms 
arm of the National Grid. 

Since NTL was privatised in 
1991 in a £70tn deal. Mr John 
Forrest, then chief executive 
and now deputy chairman, has 
made it clear he wanted to 
expand beyond providing 
broadcast transmission ser- 
vices and into more broadly 
based telecommunications. 

NTL's national telecoms 
launch follows deals with 
Vodafone, the UK’s largest cel- 
lular operator, and Birming- 
ham Cable, a cable TV and 
telecoms operator, which are 
using NTL to carry part of 
their long-distance traffic. 

Cable companies, which are 
laying local television and tele- 
coms networks but lack 
national telecoms links, are 
NTL's most likely customers. 
They are keen to force down 
long-distance carriage rates. 


and have avoided signing 
long-term deals with BT or 
Mercury which would restrict 
their capacity to move busi- 
ness to lower-cost suppliers. 

NTL has been developing 
into a broadly based communi- 
cations technology and service 
group. Earlier this year it paid 
£6.6m for DTELS, an organisa- 
tion which specialises in 
mobile communications for 
emergency services. 

The group has also been 
gaining increasing recognition 
for its work on digital compres- 
sion. which allows between 
eight and 10 channels of televi- 
sion to be squeezed into the 
capacity normally occupied by 
one. 

The group, based at the for- 
mer IBA research headquarters 
□ear Winchester, has a devel- 
opment deal with Mr Rupert 
Murdoch's News Corporation 
and Pace, the consumer elec- 
tronics group. 

NTL’s digital compression 
technology is likely to be used 
as part of plans to launch satel- 
lite television systems next 
year in Asia and Europe. 

NTL, which was bought by 
Mercury Asset Management, 
the fund-management arm of 
S.G. Warburg, is expected to 
float eventually on the London 
Stock Exchange, although no 
date has yet been set. 

NTL claimed that its net- 
work - which can be used for 
voice, data and video links - is 
the first in the UK to use 
leading-edge digital transmis- 
sion technology. 

Mr John Okas. NTL's tele- 
coms division director, said: 
“This is part of our strategic 
development into UK tele- 
coms." 


ITV to increase 
programmes 
budget to £550m 


By Raymond Snoddy 

The ITV companies have 
agreed an unprecedented net- 
work programme budget of 
£550m for next year - a rise 
that is double the rate of infla- 
tion. 

The figure, hammered out in 
talks between all the ITV com- 
panies, compares with £527m 
for this year. The increase indi- 
cates that ITV is prepared to 
keep investing to retain its rat- 
ings lead over the BBC. partic- 
ularly in popular drama. 

The budget, excluding the 
cost of the news service pro- 
vided by Independent Televi- 
sion News, might also include 
a further £2ra as a contingency 
fund. 

Mr Marcus Plantin, director 
of the ITV Network Centre, 
which commissions the 
national ITV schedule, said 
yesterday that £2l0m has been 
spent on UK-produced drama. 
He announced the ITV peak- 
time schedule for 12 months 
ahead - the first time a UK 
broadcaster has committed 
itself for a year. 

Mr Plantin - speaking at an 
industry presentation to adver- 
tisers and agencies - stepped 
up ITV efforts to expose what 
he called the myth of the 
demise of terrestrial television. 

“We have maintained our 
peak-time audience share for 
the past three years now and 
have been hardly affected by 
cable and satellite television 


penetration, which has hap- 
pened much more slowly than 
predicted," he said. 

Mr Plantin said that ITV has 
maintained “both its peak-time 
(audience] share of around 44 
per cent over the last three 
years and its 11 per cent lead 
over BBCl". 

ITV has commissioned 20 
new drama projects for next 
year - 10 of them single dra- 
mas which are pilots for possi- 
ble new series. 

The new series range from 
John Tb3W as a London barris- 
ter in Kavanagh QC to an 
adaption of Mary Wesley’s 
book The Vacillations of Poppy 
Carew. The highlights of fac- 
tual programmes will include 
The Churchills to mark VE 
day; A Seat On The Board. 
aim ed at the business commu- 
nity, and Lady Killers, an 
examination of the fatal ill- 
nesses which affect women. 

The Network Centre has 
established a rolling three-year 
budget, enabling it to enter 
exclusive long-term deals with 
Hollywood studios such as 
Columbia and Warner 
Brothers. 

Mr Plantin claimed that the 
loss of Premier League football 
to British Sky Broadcasting, 
the satellite television network 
in which Pearson, owner of the 
Financial Times, has a stake, 
was a blessing in disguise as it 
enabled the network to spend 
more on drama, entertainment 
and factual programmes. 


Livestock shipping ban ‘may cost farmers £200m’ 


By Deborah Hargreaves 

British farmers stand to lose up to 
£ZOOm a year in trade from bans on 
the export of live animate to the Con- 
tinent imposed by ferry companies. 

The figure was given yesterday by 
the Association of Livestock Export- 
ers one the eve of today’s start of the 
ban by P&O. 

There was more bad news for farm- 
ers yesterday as it became clear that a 


new service for transporting live ani- 
mals was unlikely to be able to start 
immediately. MDT Holdings, a 
London-based shipping company, 
plans to unveil a service from Har- 
wich to get around the ban on live 
exports which bas now been imposed 
by most large ferry companies. 

However, the agriculture ministry 
said yesterday that the company's 
vessel had not yet been approved by 
its inspectors and was unlikely to 


receive the go-ahead far a service to 
begin today. “The company hasn't 
submitted any formal papers for 
export yet,” the ministry said- 
P&O introduced its ban because it 
was unconvinced by tough measures 
introduced by Mr William Walde- 
grave, agriculture minister, to 
improve the treatment of live animals 
on long journeys. “We are looking to 
Brussels for some action - there 
needs to be European-Union-wide 


enforcement of the measures,” it said. 

The ban in effect cuts off business 
for UK termers, as the company car- 
ried 60 per cent of live exports. Stena 
Sealink and Brittany Ferries, with 10 
per epnt of the market each, have 
already introduced bans - although 
Brittany's ban covers only animals 
destined for immediate slaughter. 

Livestock markets are already feel- 
ing the effects of the ban. The Meat 
smri Livestock Commission, thw indus- 


try’s marketing body, reports prices 
for Friesian bull calves down 30 per 
cent this week to £99 a head a ga i nst 
the same week last year. 

Prices have dropped sharply in 
recent months from £170 per anim al 
at the end of June. This can be 
explained partly by a seasonal 
incre a s e in cattle coining to market, 
but much of the drop in the market is 
attributed to uncertainty among tenn- 
ers over the terry ban. 


Call to 
retain US 
defence 
trade link 


By Bernard Gray 

The UK should look to the US 
as well as Europe when con- 
sidering developing new weap- 
ons systems, Mr Roger Free- 
man, defence procurement 
minister, said yesterday on his 
return from a visit to Wash- 
ington. 

Mr Freeman said Britain 
should not move Into an exclu- 
sively European defence indus- 
try but should co-operate with 
the US on programmes such as 
anti-ballistic missile systems. 
“Whilst we have collabora- 
tions with France and Ger- 
many we should not be party 
to any lockout of the 
Americans.” 

He pointed out the imbal- 
ance in defence equipment 
trade between the US and the 
UK. “Currently we buy about 
S2bn of equipment from the US 
annually, but they only buy 
about Slbn of equipment from 
us. We need to have a more 
level playing field.” 

In Washington Mr Freeman 
met Mr John Dentch, deputy 
US defence secretary, a9 well 
as congressional leaders. Mr 
Freeman told Mr Dentch that 
the UK was considering plac- 
ing several very large equip- 
ment orders in the US. includ- 
ing replacement Hercules 
aircraft and attack helicopters 
for the Army. The orders are 
worth a total of more than 
£3bn. 

He called on the US to be 
eqnally open in its procure- 
ment policies. He particularly 
mentioned the UK-Italian 
EH 3 01 large helicopter as a 
possible alternative to Boe- 
ing’s V-22 Osprey, which is 
under threat of cancellation. 

Mr Freeman told congressio- 
nal leaders that protectionist 
policies in defence increased 
the cost of equipment to the 
US taxpayer. But he acknowl- 
edged that in times of heavy 
cutbacks, die pressure to buy 
locally was very strong. 

He highlighted a number of 
areas where the UK could 
co-operate with the US in 
weapons development. He said 
that British expertise in sur- 
veillance. tracking and radar, 
for example, could have appli- 
cation in ballistic missile 
defences. 

Mr Freeman’s emphasis on 
transatlantic links may dis- 
tort) some European business 
leaders who see the develop- 
ment of a pan-European indus- 
try as the only way to prevent 
US domination of the interna- 
tional defence market. 

Mr Louis Gaffois, chief exec- 
utive of the French state- 
owned Aerospatiale, argued 
earlier this year that the Euro- 
pean aerospace industry bad 
to consolidate quickly to meet 
the US challenge. 

Many British defence execu- 
tives also believe that while 
there may be collaboration 
with tbe US on specific pro- 
grammes. the bulk of the 
co-operation and mergers- will 
be within Europe, rather than 
as Anglo-American deals. 


Abracadabra! It’s the barter magicians 

Motoko Rich talks to the people who can turn a photocopier into a delivery van 


Mr Edward Kalfayam. owner 
and managing director of Digi- 
tal Print Technologies, a com- 
mercial printer, has performed 
an act of financial sorcery. “I 
am spending £20.000 that I 
don't have this year.” he said. 

In deals with a computer 
company and a laminating- 
machine maker, Mr Kalfayam 
acquired £20,000 worth of hard- 
ware by bartering his compa- 
ny's printing services. 

This kind of reciprocal 
arrangement is more familiar 
to factory managers in the for- 
mer Soviet Union, where strug- 
gling economies have resorted 
to barter as a form of payment. 

But for Mr Kalfayam, whose 
bumness has a turnover of just 
under £im a year, the trade of 
services for goods rather than 
cash is a positive move which 
has bolstered his company 
accounts. 

Now he has an opportunity 
to increase his bartering power 
and move beyond one-to-one 
trades. As a member of 
London-based Capital Barter 
Corporation, a company which 
orchestrates third-party deals, 
he has entered a pool of busi- 
nesses which offer their goods 
and services for trade credits 
rather than cash. Since last 
year Digital Print has used 
trade credits to purchase legal 
services, couriers, air- 
conditioning and floor cover- 
ings. 

CBC is one of a handful of 
barter companies in Britain’s 
fledgling industry, which 
includes Hie Bartering Com- 
pany and Business Barter 
Exchange - both in London - 
and Eurotrade in Newcastle 
upon Tyne. 

The UK’s systems are mod- 
elled on a flourishing industry 
in the US. where the $7bn 
<£4.4bn) barter business has 
been running for more than 30 
years. There, large companies 
such as Lu fthansa, the German 
national airline; Playtex Fam- 
ily Products, which makes 
healthcare products, and USA 
Network, a cable television 
company, use barter schemes 
for sophisticated deals of about 
S2m or more. 

CBC, which began trading 
last year, conducts compara- 



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anBwgai 

Swap-shop: Victoria Cluskey, a trade broker, at work in the Capital Barter Corporation offices 


The seasons, fickle consumers 
and changing fashions ran all 
leave clothing manufacturers 
and retailers with unsold 
stock. Motoko Rich Writes. 

Traditionally, excess stock is 
discounted heavily or sold to 
liquidators for as low as 15 per 
cent of wholesale value. 

But yesterday. Apparel Mar- 
keting Services, the trading 
subsidiary of the British Knit- 
ting and Clothing Export 
Council, signed an agreement 


with Atwood Richards, a US 
corporate barter company, to 
offer the council's 1.200 mem- 
bers an o pp o rt un ity to dispose 
of assets for better value. 

Atwood Richards, a private 
company, has been operating 
since 1958. It trades in 28 
countries and opened its UK 
office in Loudon last year. 

“Where companies can no 
longer realise the cash or are 
facing a loss, we will buy their 
stock at dose to wholesale 


value and exchange it for 
essential, pre-imdgeted goods 
and services," said Mr Trevor 
Edwards, managing director of 
Atwood Richards in London. 

The company acts as a prin- 
cipal - as opposed to a broker 
- and boys products with 
trade credits, which are 
redeemable for specified goods 
and services. These are 
obtained whan Atwood sells a 
client’s excess products, usu- 
ally outside its cash market. 


tively modest deals, ranging 
anywhere between £15 for a 
restaurant meal to £15,000 tor a 
stock of computers. It acts as 
bookkeeper for its network of 
150 members - which is grow- 
ing at a rate of 10 a month - 
including big corporations 
such as Konica Business 
Machines and Olympus Optical 
Company, and small busi- 


nesses such as Digital Print, 
and Mandeer. an In dian restau- 
rant in London. 

The barter company debits 
and credits its members’ 
accounts in "trade pounds”. 
These credits are equivalent to 
sterling, with items priced at 
retail or wholesale value, 
depending on the nature of the 
business. Each member is 


assigned a credit limit depend- 
ing on the size of the company 
and the desirability of its prod- 
ucts. Within the pool the most 
popular items are computers, 
photocopiers and airline tick- 
ets. 

“We are a mix of an issuing 
hank, a clearing bank and a 
trading house or broker," said 
Mr David Carlisle, legal 


and policy adviser to CBC. 

In the US, selling unsold 
inventories is an important 
function of the larger barter 
companies. “With the prolifera- 
tion of bells and whistles on 
new products, older products 
go obsolete very quickly," said 
Mr Alan Elkin, chief executive 
of Active International, one of 
the hugest US barter compa- 
nies. 

The company does $500m in 
trade annually. Mr Elkin said: 
“We allow manufacturers to 
trade for a wanted asset rather 
than raah t ami thay ean liqui- 
date their merchandise for tbe 
full value that it is worth.” 

But barter can never be the 
main form of sales for a compa- 
ny’s product “It is not going to 

Save a failing firm that canno t 
mfllrp annngh galas on a 

basis,” said Mr Paul Suplizio, 
chief executive of the Interna- 
tional Reciprocal Trade Associ- 
ation. "But it can provide a 
mar gin of additional value.” 

This value is best achieved 
in sectors whore the incremen- 
tal cost of taking an extra cli- 
ents is low. Printers, hotels, 
advertiang agencies and many 
manufacturers fall into this 
category. 

“Allowing one room to be let 
on barter, for example, only 
costs a hotel the price of laun- 
dry and dearring because all 
the other services in the hotel 
are fixed costs paid for by cash 
clients," said Mr John McLen- 
nan, CBC operations director. 
“But the buying power It earns 
in trade pounds is equal to the 
full retail value of the room." 

Some companies are reluc- 
tant to deal in barter because 
they believe they still get bet- 
ter deals in cash. “A lot of com- 
panies, when they find out how 
much a fax machine is in trade 
pounds, say they can get a bet- 
ter deal by getting a discount 
in cash,” said Mr John 
Howard, marketing manager at 
Konica Business Machines, 
which has traded about £80,000 
worth of photocopiers and fax 
machines for carpeting and 
delivery vans. “But if they 
think how much it would cost 
to generate that cash, they 
would find .it Is cheaper to do 
the deal on barter." 


Bottomley signals delay 
on NHS local pay deals 


Sea change in defence. Page 7 


By Lisa Wood, 

Labour Staff 

Mrs Virginia Bottomley, health 
secretary, yesterday admitted 
that locally determined pay 
could not be introduced com- 
prehensively next year for 
National Health Service work- 
ers. 

She told the Trust Federa- 
tion annual conference in 
Bournemouth that, like the 
independent pay review bodies, 
sbe expected to see a move to 
local pay in the NHS over tbe 
next few years. She described 
it as a “natural development” 
of trust s&tus. 

This appears to contradict 
evidence submitted by her 
department to tbe Independent 
pay review body for nurses and 


midwives earlier this month. 
The submission called for the 
body not to recommend an 
across-the-board increase, but 
to speed moves towards local 
arrangements. 

In its evidence to the pay 
review body the department 
said it wanted “a strong steer 
to the continued development 
and implementation of local 
arrangements by leaving 
employers with maximum 
scope for local action". It 
added: “Clearly, any 

across-the-board recommenda- 
tions would inhibit such devel- 
opments.” 

Only about 11 NHS trusts, 
which include community and 
ambulance services as well as 
hospitals, have introduced 
comprehensive local pay pack- 


ages, including performance- 
related pay. 

Many trusts have expressed 
concern that they may not 
have the packages in place by 
April, tbe date for review-body 
pay settlements, and the target 
set by the NHS executive for 
local pay packages. 

Unions representing nurses, 
which have submitted an 
8.3 per cent pay claim when 
the government is seeking a 
second annual total pay-bill 
freeze, said they were bemused 
by the conflicting signals from 
tbe health department. 

In her speech Mrs Bottomley 
said local pay would only work 
if trusts worked with staff, 
explaining and communicating 
every inch of the way. “That 
job starts now,” she said. 


Watchdog claims 
record savings 


By James BGtz 

The National Audit Office, the 
public-spending watchdog, yes- 
terday claimed to have pre- 
vented the Department of 
Employment and the Welsh 
Office from wasting milli ons of 
pounds in recent years. 

In its annual report the office 
said it had achieved record 
savings of public money last 
year - tn excess of £266m. 

Amid concern about account- 
ability and efficiency In White- 
hall, Sir John Bourn, comptrol- 
ler and auditor-general, 
stressed there would be no 
let-up in tbe number of scruti- 
nies carried out by his organi- 
sation. 

The report says that in 
1991-92, the Employment Ser- 


vice, an executive agency, 
made £30m of overpayments in 
unemployment- benefit. As a 
result of the watchdog’s find- 
ings, the discrepancy had been 
reduced to £9.Sm by 1992-93. 

H also claims to have discov- 
ered a discrepancy in the 
1992-93 Welsh Office accounts 
which showed it had errone- 
ously paid £963400 of commu- 
nity charge grant to four local 
autho ri ties. The Welsh Office 
has since recovered this 
money. 

Mr Michael Meacher, shadow 
public-service minister, said 
the report showed the govern- 
ment's “waste and incompe- 
tence”. 

National Audit Office Annual 
Report 157-197 Buckingham 
Palace Road, London SWl. 


Updating the ‘polluter pays’ policy 


The environmental impact of 
Britain's traffic has reached 
unacceptable levels and action 
is needed by the government to 
bring it under control, a recent 
pollution report says. 

But Sir John Houghton, 
chairman of the Royal Com- 
mission on Environmental Pol- 
lution, said the aim of its 
report was “not to clobber the 
car” or limit freedom of choice 
when it came to travelling. 
“We'd like to see the benefits 
of tbe car realised, but with 
environmental factors more 
folly taken into account." he 
said. 

This will provide some com- 
fort to the government, which 
expects the commission’s 
report to provoke strong criti- 
cism of its laissez farre trans- 
port policy and reluctance to 
take firm measures to deal 
with traffic. 

The 300-page report, to be 
published at the end of the 
month, is the result of nearly 
two years* work by the 16- 
member commission, which 
consists of scientists and other 
environmental experts. It will 


David Lascelles 

fresh approach 

be making more than 100 
recommendations on how to 
deal with Britain's transport 
problems. 

The overall thrust of 

its recommendations should 
reinforce the government's 
commitment to push up the 
price of petrol and curb the 
harmful gases spewed out by 
more i-han 20m road vehicles. 

Tbe report’s starting point is 
the government’s forecast that 
the number of vehicles on 
Britain’s roads will double by 
the early part of tbe next cen- 
tury. The quantified costs of 
transport pollution already 
amount to between £10bn and 
£20bu a year, including £6bn 
for accidents. 

Although the government 
bas a policy of making the pol- 
luter pay. the commission has 
concluded that simple applica- 
tion of this principle to trans- 
port will not work. For exam- 
ple. jacking up the price of 


x £ j 

analyses a report suggesting 
to easing traffic pollution 


petrol to a level matching the 
environmental damage caused 
by traffic would also severely 
damage tbe economy and 
disadvantage large numbers 
of Britons such as rural dwell- 
ers. 

“It has got to be done more 
intelligently than that,” says 
Sir John. Instead, the commis- 
sion will urge the government 
to set targets for reducing acci- 
dents, air pollution and noise. 

The report also reviews a 
wide range of fiscal, technical 
and regulatory measures 
that might be used to achieve 
them. 

Sir John declined to describe 
tbe recommendations in detail 
ahead of publication, but it 
appears that the report will put 
forward a package of options 
for dealing with traffic over 
Che long term. 

Some will increase the cost 
of driving, others will aim to 
raise technical standards of 


vehicles, and others will put 
the case for expansion of pub- 
lic transport 

There will be a strong 
emphasis on tax measures, 
with a doubling of the petrol 
price over 10 years singled out 
as a desirable aim. 

But the commission is also 
keen to raise the efficiency of 
the transport sector, and its 
recommendations will go into 
the area *of traffic manage- 
ment, industrial planning 
and even home working to 
find ways of bringing down 
the number of journeys 
people and businesses have to 
make. 

■■Environmental factors need 
to be much more seriously con- 
sidered." says Sir John. “Peo- 
ple are having to accept trans- 
port impinging on their lives in 
a way they don't like, through 
air pollution, noise and vibra- 
tion. and land use.” 

To reach their recommenda- 


tions. members of the commis- 
sion travelled widely abroad - 
to the US, the Continent and 
Japan. But Sir John said that 
no country had found the per- 
fect answer. 

The US approach was 
heavy-handed, making exces- 
sive use of regulation. Japan 
had curbed pollution and had a 
good train system, but its road 
network was poor. One of the 
strongest impressions mem- 
bers brought back was of Delft 
in Holland where 40 per cent of 
journeys are made by bicycle, 
even in the rain. 

Although the commission's 
report is being awaited with 
some anxiety by the transport 
industry. Sir John said he 
doubted that it would reduce 
the amount of traffic on the 
roads: at best it would only 
slow down its growth. 

“It would be unrealistic to 
expect any measures to reverse 
the rate of growth,” he said. 
However he said tbe commis- 
sion was looking for ways to 
have “a substantial impact” on 
the pace at which Britain’s 
traffic was increasing. 



Safegua r d ing fossil fuels: a team of friendly dinosaurs is i 
Uw message: “Wasting energy costs tbe earth.” The i 
Ron, Brenda and Billy - were chosen to “harness 


d rive wtt fr; 

■flie monsters .*?• 


- r 



5 


FINANCIAL TIMES WEEKEND OCTOBER 1/OCTOBER 2 1994 



Labour leaders look to transcend wages row 


By PhHp Stephens, 

Political Editor 

The Labour leadership 
appeared hopeful last night 
that it could prevent a row 
over the minimum wage from 
overshadowing Mr Tony Blair’s 
plans to use the party’s Black' 
pool conference to set out the 
main planks of his electoral 
strategy. 

The last-minute efforts to 
defuse a potentially damaging 
dispute came as Mr Kenneth 
Clarke, the chancellor, reaf- 
firmed the government’s 
long-term commitment to tax 
cuts. 

In an attempt to regain some 
of the initiative after a week 
dominated by Labour’s efforts 
to discard its image as a high- 
spending, high-tax party, Mr 


The Labour party yesterday extended 
Its attack on the government’s recent 
tax increases by claiming that the tax 
on insurance premiums which comes 
into effect today win make it balder 
for the public to fight crime, James 
Blitz writes- 

Senior party figures said the tax 
would add £13.90 to the annual average 
expenditure of British households. 


Ms Harriet Harman, shadow chief 
secretary to the Treasury, said the 
2.5 per cent tax on household and car 
insurance, introduced in the last Bud- 
get, was another example of bow the 
Tories had broken their pledge not to 
raise taxation. 

She said the tax would “hit hardest 
at those living in high crime areas, 
often the most disadvantaged parts of 


the country". However, she refused to 
give a commitment that Labour would 
abolish the tax if it came Into govern- 
ment 

Ms Hannan signalled yesterday that 
Labour would try to highlight the 
impact of the Conservative party's tax- 
ation policy by insisting that the net 
effect of the government's last two 
Budgets had been to add 7p in the 


poupd to the basic rate of income tax. 

She believed that the government 
might try to soften the impact of its 
indirect taxes — including value added 
tax on fuel and redactions in mortgage 
i n t e rest relief — by cutting direct taxa- 
tion before the election. “If that hap- 
pens, we will respond by looking at 
how much that 7p-tn-tb e-pound bill has 
been reduced.” die said. 


Clarke said the Conservatives 
would “re-establish with the 
voters that we will deliver tax 
cuts when the economy can 
afford it”. 

Mr Clarke offered no specific 
commitment on the tuning - 
however he insisted that the 
government’s commitment to 
steady growth, low inflation 
and tight control of public 
spending made lower taxes a 


question of “when" not “if". 

Mr Clarke’s comments came 
in a letter to Conservative 
party constituency chairmen. 
With a little more than a. week 
to go until the Tory party con- 
ference it said: "Rushing into 
tax cuts in this coming budget 
with borrowing still high 
wouldn’t have Impressed any- 
body for very long." 

Labour party officials said 


the TGWU general union was 
increasingly isolated in its 
insistence that Labour endorse 
a rigid formula to fix 
the level of a minimum 
wage during Monday’s opening 
conference debate on the 
economy. 

Mr Blair wants the party to 
camp ai g n on the principle of 
raising the pay of low-paid 
workers rather than be drawn 


into internal arguments about 
a particular leveL A conference 
defeat on the issue would seri- 
ously dent Us authority but 
could be averted later today 
when officials unions set 
the precise terms of the 
planned debate. 

That position has been 
backed forcefully by Mr John 
Prescott, the deputy leader, 
who baa used bis considerable 


sway with the unions to warn 
against an open conference 
split on the day before Mr 
Blair’s first speech as leader. 

After this week's high-profile 
rejection of bis party's past 
commitment to high taxes and 
borrowing, Mr Blair intends to 
use the conference to show 
that be now has a positive 
agenda on which to fight the 
Conservatives. 


In a statement of his priori- 
ties later today, the Labour 
leader will set the central 
th emes as industrial and eco- 
nomic renewal, reform of the 
welfare state to get people hack 
Into employment, and a firm 
commitment to social responsi- 
bility. 

The statement. New Labour 
for New Britain, will represent 
the party as the voice of the 
majority in contrast to the 
portrayed sectional interests 
represented by the Conserva- 
tives. 

Mr Blair will tell the confer- 
ence th«t the party must be 
clearer in drawing the dividing 
lines between the two parties 
and must shake off the percep- 
tion that it has been motivated 
by electoral expe dienc y rather 
t han arm principles. 


Generators 
support nuclear 
power sell-off 


By Michael Smith 

The privatisation of the 
nuclear power industry yester- 
day received qualified support 
from rival electricity genera- 
tors as the consultation period 
for the government’s nuclear 
review closed 

The Association of Indepen- 
dent Electricity Producers, 
which includes former state- 
owned generators National 
Power and PowerGen, urged 
the government to “make 
every effort” to privatise the 
nuclear power industry. How- 
ever it said nuclear power 
should be given “no special 
advantage over other privately 
owned generating businesses". 

National Power and Power- 
Gen have not published their 
submissions but it is under- 
stood they are sympathetic to 
privatisation. However they 
are thought to have said that 
privatisation of Nuclear Elec- 
tric and Scottish Nuclear 
would only be acceptable if 
“subsidies”, including the fos- 
sil fuel levy, were phased out 
The £lbn a year levy is sched- 
uled to last until 1998. 

The producers’ association 


said the government “must 
make quite clear that invest- 
ment in any new nuclear 
power stations should be on a 
full commercial basis with 
investors judging the need for 
capacity”. 

It pointed out that Nuclear 
Electric’s own submission 
“makes it quite clear that elec- 
tricity from new nuclear sta- 
tions would not be competitive 
in today’s market. Intervention 
in the electricity generation 
market to protect the interests 
of one technology may damage 
the interest of those who have 
to compete with that technol- 
ogy". That could damage the 
interests of the electricity con- 
sumers. 

The association also ques- 
tions the electricity industry’s 
grid code which treats nuclear 
plants as inflexib le. The code 
“means that when it is neces- 
sary for stations to be turned 
off for grid management pur- 
poses. nuclear stations are 
turned off last”. Although the 
submission says this may have 
been appropriate before elec- 
tricity privatisation, its justifi- 
cation in the new market place 
should be re-examined. 


Channel 
tunnel’s 
car shuttle 
launched 

By Charles Batchelor, 

Transport Correspondent 

Eurotunnel yesterday 
launched the flagship shuttle 
service with which it hopes to 
win half of the cross-Channel 
car passenger market by the 
end of 1996. 

Car shuttles carrying staff, 
journalists and the winners of 
a Eurotunnel travel competi- 
tion made the 35- minute jour- 
ney in the twin-deck, air- 
conditioned shuttle trains. 

On Monday, nearly 18 
months later than originally 
planned, Eurotunnel will start 
its Overture service with a trip 
for invited shareholders, bank- 
ers. MPs and MEPs. It hopes to 
carry 60,000 passengers and 
20,000 cars in the six weeks or 
the introductory service. 

The company has already 
received applications from 
more than 10,000 of its UK 
shareholders alone and 
requests are arriving in their 
thousands every day. Mr Chris- 
topher Garnett, commercial 
director, said. Shareholders, 
who will be expected to pay £30 
to cover administration costs, 
will be selected by ballot 

The final price of tickets will 





.. 5 .1- 
jW ■■ 

Eurotunnel plans at first to run one car shuttle an hour - each is almost half a mile long and can carry 180 cars 


not be anno unced until mid- 
November when Eurotunnel 
plans a full service for car pas- 
sengers. 

Eurotunnel announced car 
shuttle fares in January when 
it expected to start services in 
May. They ranged from £125 
for a two-day return fare to 


£310 for journeys on peak mid- 
summer weekends. It withdrew 
these fares, regarded as being 
quite high, when the launch 
was delay ed. 

Car passengers are expected 
to remain with their vehicles 
during the crossing although 
they can move around on the 


narrow aisles beside their cars. 

Each of the almost half-mile- 
long shuttle trains can cany 
up to ISO cars or 120 cars and 
12 coaches. Eurotunnel is 
beginning with one car shuttle 
an hour but this will rise to 
four an hour whan it is operat- 
ing at full capacity. 


The blocked drainage pipes 
which led to the build up of 
water and disrupted s i g n all i n g 
in the tunnel may have to be 
replaced if they cannot be 
cleared, Eurotunnel said. “This 
is possibly a design fault," Mr 
John Noulton, public affairs 
director said. 


‘Man from the Pru’ under threat 


By Alison Smith 

The insurance agent who 
collects regular cash payments 
from customers’ homes - the 
“man from the Pru" - could 
become an endangered species 
under government proposals. 

Ideas for streamlining or 
abolishing the separate 
arrangements For industrial 
branch business - as this spe- 
cific type of life insurance is 
known - will be discussed in a 
consultation paper due to be 
published around the turn of 
the year. 

Under legislation from the 
1920s. an agent for this type of 
business must call at custom- 
ers’ homes to collect cash or 


cheques more often than every 
two months and must initial in 
a premium receipt book the 
amounts paid. 

The policies that agents can 
sell are also very limited and 
do not. for example, include 
pensions. Nor, even though the 
emphasis is on simple policies, 
are agents allowed to sell term 
assurance - policies which are 
directed at protection without 
any investment element 

The costs of this labour- 
intensive system of collection 
are relatively high, reducing 
the returns which would other- 
wise be available to customers. 

Life companies specialising 
in this area acknowledge the 
expense involved, but say that 


by accepting small premiums, 
often from people without 
bank accounts, they are giving 
clients an opportunity to make 
provision for themselves which 
they would not otherwise 
have. 

As more people open bank 
accounts and life companies 
opt for less expensive means of 
collection, the amount of new 
industrial branch business has 
been slipping in recent years 
from 2.05m new policies in 1990 
to 1 21m in 1993. But there are 
more than 45m policies still in 
force. 

Even though Prudential Cor- 
poration. the UK’s largest life 
insurer, has become synony- 
mous with industrial branch 


business, the organisation has 
been withdrawing from this 
area: in 1992 it raised its mini- 
mum premium from £12 to £20 
a month. It does, however, still 
have a “home service" sales 
force of agents who visit cus- 
tomers In their houses. 

The Association of British 
Insurers argues for greater 
flexibility, so that an industrial 
branch customer could choose 
to switch from paying in cash 
without having to surrender 
the existing policy and start a 
new, ordinary one. 

But it believes legislation is 
still the way to force insurance 
agents to make their regular 
home visits even when the 
weather is bad. 


1,000 advisers miss PI A deadline 


By Afison Smith 

Some 1.000 independent financ- 
ial advisers appeared 
to have rejected regulation by 
the Personal Inves J™!“* 
Authority, the new watchdog 
to protect the private master- 
ThedeadBne was at mdntig- 
To+pot estimates fro® Ul ® 

wUI ntrtbe clear until next 


week how many of the non- 
applicants have left financial 
services. 

The strict deadline for appli- 
cations was imposed by the 
Securities and Investments 
Board, the chief City regulator, 
in June. 

It said that by today all those 
in the retail financial services 
industry who had not applied 
to the PIA should have done 
one of three other things. They 
were: apply to be regulated 
directly by SIB or by a recog- 
nised professional body, say 


they were joining a network of 
advisers or setting up a “tie" 
with a life company: signal 
their intention to leave the 
investment business by the 
end of the year. 

An independent adviser who 
failed to take any of the avail- 
able courses would lose author- 
isation. This would make it a 
criminal offence to continue 
investment business, which 
would mean that customers 
would lose regulatory protec- 
tion. Anyone wanting to check 
tbe status of an adviser can 


contact SIB central’s register 
<Cm 929-3652). 

PIA offices in central Lon- 
don. Croydon and Edinburgh 
were remaining open until the 
midnight deadline in order to 
receive last-minute applica- 
tions. The regulator estimated 
it could have received as many 
as 700 applications in the final 
week. 

The controversy and uncer- 
tainty over the PIA’s future 
until relatively recently may 
have deterred some advisers 
from early application. 


White 
House firm 
on Adams 
stance 

By George Graham 
In Washington 

Mr Bill Clinton, the US 
president, has no plans to 
meet Mr Gerry Adams, VS offi- 
cials repeated yesterday in the 
face of the Sinn F6in presi- 
dent’s con tinned campaign for 
a White House meeting. 

“He will meet with officials 
from tbe State Department 
and White House at the work- 
ing level but not here," said 
Ms Dee Dee Myers, Mr Clin- 
ton’s press secretary. 

White House officials said 
fi nal decisions on who would 
meet Mr Adams when be visits 
Washington on Monday and 
Tuesday were likely to be 
taken yesterday. 

On his tour of the US. Mr 
Adams has been campaigning 
to have his reception 
upgraded. This week, Mr 
Rudolph Giuliani, mayor of 
New York, welcomed him as a 
“harbinger of peace". He 
added: “I think President Clin- 
ton should greet him." 

But the Clinton administra- 
tion is sticking to its promise 
to the British government that 
Mr Adams would not be 
received at tbe White House. 


Battle lines are 
drawn on post 


By Andrew Adonis 

Tbe consultation period for the 
government's green paper on 
the future of the Post Office 
closed last night with the bat- 
tle lines on the issue of privati- 
sation predictably drawn. 

The unions and opposition 
parties are resolutely opposed 
to privatisation in any form, 
repeating tbe stance they have 
taken with virtually every pri- 
vatisation over the last decade, 
most of which they no longer 
propose to reverse. 

Equally predictably, the Con- 
federation of British Industry 
and the senior management of 
the Post Office are strongly in 
favour of a sell-off, c l a i m in g 
that the commercial freedom 
generated by privatisation is 
critical to the future success of 
the postal service as it feces 
stiff international competition. 

The CBL in its response pub- 
lished yesterday, said privati- 
sation would “bring further 
price and quality improve- 
ments benefiting customers”. 

Union and Labour leaders 
have hi g hli g hted the dramatic 
pay rises for senior managers 
which have followed earlier 
privatisations. They also claim 
the sell-off might endanger the 
letters service, and the 20,000 
rural post offices. 


The government's favoured 
option would involve the sale 
of 51 per cent of the Royal 
Mail, the largest business 
within the Post Office, which 
handles the letters delivery, 
and Parcelforce. The counters 
division, which is responsible 
for high street and village post 
offices, would be hived-off into 
a separate operation continu- 
ing in the public sector. 

About 20 per cent of the pri- 
vatised company would he sold 
to Post Office employees and to 
the staff managing sub post 
offices run on contract for the 
Post Office. 

However the National Feder- 
ation of Sub-Postmasters drew 
back yesterday from endorse- 
ment of the privatisation plan. 
Although supporting changes 
giving tbe Post Office greater 
co m me rcial freedom, tbe feder- 
ation said that “many areas” 
required clarification. 

The cabinet has yet to take a 
final decision on postal privati- 
sation. Although it is strongly 
favoured by Mr Michael 
Hesettlne, trade and industry 
secretary, the government’s 
small parliamentary majority 
may be in danger unless dis- 
contented Tory backbenchers 
are convinced that the letters 
service, and sub-post offices 
are not threatened. 


Capital 
tax break 
urged for 
industry 

A Tory-led industry pressure 
group yesterday urged Mr Ken- 
neth Clarke, the chancellor, to 
introduce 100 per cent capital 
allowances in the Budget next 
month as part of a dear strat- 
egy for economic growth. 
David Owen writes. 

The Manufact uring and Con- 
gtruction Industries Allian ce — 
chaired by Mr Nicholas Winter- 
ton, Conservative MP for Mac- 
clesfield - said the move was 
vital to the fixture prosperity of 
tbe UK The alliance also urged 
Mr Clarke to avoid any further 
tax increases. 

Mr Wmterton said the gov- 
ernment should “give a boost 
to the economy specifically 
through lower interest rates, 
the introduction of 100 per cent 
capital allowances in the first 
year to encourage industry to 
invest in the new facilities 
vital to our continued compdx- 
txveness, and further, carefully 
targeted investment in the 
transport infr astructure and 
the public-sector building 
stock". 

Ofgas sets £15 
delivery charge 

A standing charge of £15 a year 
for wiatns gas delivery to 
domestic customers was set 
yesterday by Ofgas. tbe indus- 
try regulator. 

Ms Clare Spottiswoode, 
Ofgas director-general, said she 
had set the charge “In anticipa- 
tion that the gas market will 

move to full competition in the 

near fixture”. 

As a monopoly, British Gas 
has not been required to break 
down its £87-a-year domestic 
standing charge between the 
costs of transportation and of 
its t iding division. But the 
planned liberalisation of the 
market beginning in 1396 will 
led to the separation of tbs two 
functions. 

• British Gas yesterday 
announced the closure by the 
end of next year of its research 
station at Kiffingworth, North 
Tyneside. Many of the 400 
employees wifi, be offered jobs 
at Its new consolidated 
research centre at- Lough- 
borough, Leicestershire. 

Signal workers 
vote to accept deal 

Railway signal workers last 
night voted by a majority of 
more than 6-1 to end their 15- 
week dispute and to accept the 
pay deal hammered out on 
Wednesday between Rad track 
and the RMT union. 

A total of 2,461 workers 
voted to accept the deal and 
406 voted against The tele- 
phone poll attracted responses 
from 71 per cent of signal 
workers. 


Prescott appoints 
Euro-adviser 

Mr John Prescott, deputy 
Labour party leader, yesterday 
appointed Mr Brian Simpson, 
MEP for Cheshire East, to tbe 
new post of parliamentary pri- 
vate secretary in the European 
parliament. Mr Simpson will 
help Mr Prescott develop rela- 
tions between the party organi- 
sation in the UK and Brussels. 

Mr Alan Meale, Labour MP 
for Mansfield, Is to be Mr Pres- 
cott’s parliamentary private 
secretary in the Commons and 
Ms Rosie Wmterton has been 
appointed his political adviser 
and will take charge of his pri- 
vate office. 

200 Scottish jobs 

Solectron, the US electronics 
company, is to invest £10m in 
expanding its printed circuit 
board assembly plant at Dun- 
fermline, Fife. The expansion 
will create 200 jobs bringing 
tiie workforce to 1,000. 


Accountancy chief attacks j Slower manufacturing growth signalled 
plans for umbrella body 


*****, ft 

I? 1 of the Institute 
Fn3 aner '*i Accountants 111 

atui VWes yesterday 

a Planted certified 

accountants? body for the 
•wla!? 1 of profession as 

d ®f d « n arrival 

Lawson described 
the idea of a GenMfl Account- 
rng Council for tie UK and 


Irel and as a 
ward by the 
hon of Certified Ac 
The dispute puts 
doubt the ability of 
sion’s six leading i 
bodies to move foi 
the scwalled Bish 
for reform. 


put for- 

Associa 

intents- 

serious 
ie profes- 
ifessional 
'■aid with 
proposals 


That scheme, which is being 
presented to the meinberships 


in various consultation pro- 
cesses. envisages the merger of 
the six bodies on a regional 
basis. 

The association’s plan, put 
forward by its president Mr 
John Moore, instead urges the 
creation of a new umbrella 
group and the preservation of 
the existing bodies. 

While it defends the scheme 
as a genuine attempt to find a 
way forward for all six leading 
bodies, it was seen as a serious 
blow to the Bishop plan. 

Mr Lawson’s reaction, 
delivered to a meeting of char- 
tered accountants in the 
Thames Valley area, was dis- 
missive. 

“The accountancy profession 
as a whole would have abdi- 
cated its responsibilities to its 


members and to the public to 
some sort of quango of ques- 
tionable accountability. 

“The principal effect of the 
recent idea put forward by 
ACCA would have been to 
transfer effective control to a 
minority of government and 
other external nominees. 

“I cannot believe that that is 
what most of the accountancy 
profession would have wanted. 
U is certainly not what I want 
to see for my members. 

"For this critically important 
reason I regarded the ACCA 
idea as dead on arrival, if not 
actually still-born.” 

Mr Lawson said reform bad 
to deliver better standards of 
qualification and professional 
performance and a better use 
of resources. 


By Gillian Tett, 

Economics Staff 

Hints that the recent 
acceleration in manufacturing 
growth may slow slightly 
towards the end of the year 
emerged yesterday in a busi- 
ness survey. 

The Purchasing Managers’ 
Index fell for the second con- 
[ secutive month in September 
j as the seasonally adjusted rate 
I of growth in new manufactur- 
j Lng orders dropped. 

The index, compiled from 
! data on stocks, output, orders. 
I deliver}- times and prices, was 
! 59.6 per cent in September. 
1 down from 59.7 per cent in 
August and 62.1 per cent in 
| July. Any figure above 50 per 
j cent indicates growth from the 
previous month. 

; The results echo a recent 
s Confederation of British Indus- 


The profitability of UK industrial and 
commercial companies increased last year 
reaching its highest level in percentage 
terms since 1989, figures released yesterday 
by the Central Statistical Office show, Philip 
Coggan writes. 

The figures show companies' net rate of 
return, as measured by the ratio of operating 
surpluses, or profits, to the capital stock 
employed. For industrial and commercial com- 
panies. the rate of return was g.-i per cent in 
1993, up from 7 per cent in both 1991 and 1992. 


Corporate profitability remains well below 
the 10 per cent recorded in 1988, and the 
all-time peak of 12 per cent in 1964. But the 
rates of return earned in 1991 and 1992 were 
above those recorded in the two previous reces- 
sions in 1975 and 1981. 

If North Sea companies are excluded, the rate 
of return recorded last year was lower, at 7.8 
per cent. Manufacturing companies earned a 
return of just SB per cent. However, both sec- 
tors recorded improvements over the returns 
earned in 1991 and 1992. 


try survey that also suggested 
orders may slow. 

With official production data 
due next week, these findings 
may add to the debate about 
the government’s recent deci- 
sion to raise base rates to 5.75 
per cent. Although the CBI sur- 
vey was mainly carried out 
before the rise in base rates, 
some business groups have 
arqued that the move may hin- 


der the pace of industrial 
growth. 

However. City economists 
have been predicting that the 
recent acceleration in produc- 
tion growth would slacken 
towards the end of the year. 
Manufacturing output grew 39 
per cent in the year to July, 
and some economists fear that 
a further acceleration might 
create capacity problems. 


One example of these pres- 
sures came Him week when 
British Steel admitted that a 
recent rise in demand for 
structural steel sections , for 
construction work had forced 
it to dose its export order book 
for these products for the rest 
of the year. The last time ris- 
ing demand had forbad such a 
move was during the boom in 
1990. it said. 


These growth pressures were 
also reflected In the Purchas- 
ing Managers’ Index, which 
showed that almost a third of 
companies faced increasing 
problems in meeting delivery 
times. . 

The proportion. . ai jpurcbasing 
managers .intending to nu®® 

prices fell fractionally during 
the month. ;i w 

Nevertheless, 

the managers, surveyed saw 
they stm envisaged P«**£feS; 
with tte-chemicafe 
plastics, i»i«- and^SaBgf 

industries reporting price 

■ 1 ”m5“5rtpnt 

oar cent, suggesting tear 

ductfon w^SS^S^tiaew 
Santember- However new 


6 




FINANCIAL TIMES WEEKEND OCTOBER 1/OCTOBER 2 1994 


FINANCIAL TIMES 

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

Saturday October 1 1994 

Nagging at 
the recovery 


By rights, it ought to be a quite a 
party in Madrid this weekend. For 
the first timp in several years, the 
finance ministers and central 
bankers of the Group of Seven 
largest Industrial countries all 
have growing economies, with 
barely a hint of inflation to go 
with it. Even the latest World Eco- 
nomic Outlook from the Interna- 
tional Monetary Fund allows itself 
to be unusually upbeat about the 
state of the world recovery, 

Who could ask for more? The 
IMF would not be the IMF if it did 
not see reasons to worry, and cor- 
responding room for improvement 
in many industrial countries' 
monetary and fiscal policies. But 
finance ministers rarely pay much 
attention to its straitlaced pre- 
scriptions: certainly not enough to 
let it ruin a couple of days 1 sun- 
shine and sangria. 

The nagging of the financial 
markets, however. Is more sober- 
ing. Every downward lurch in 
American and European bond 
markets - like the one which 
occurred this week - can mean 
another missed budget tar- 
get and, possibly, another difficult 
round of tax increases an ^ spend- 
ing cuts. The markets' worries 
may be less consistent than the 
IMF's, but the underlying message 
is the same. Seizing today's oppor- 
tunity for an unprecedented 
period of global growth requires 
prices to remain stable, and public 
borrowing to fall. 

The good news is that the oppor- 
tunity Is there for the taking. As 
the IMF's report states, “the recov- 
ery of world activity and trade 
became firmly established during 
the first half of 1994". Overall, the 
organisation is predicting 3 per 
cent growth in global output this 
year, a little more than it thought 
likely when it produced Its May 
Outlook. 

Signs of recovery in continental 
Europe and Japan, and the grow- 
ing momentum behind the US and 
UK upswings, mean that the 
global growth figure hides less 
diversity than before. The develop- 
ing countries continue to grow 
fastest the IMF expects output of 
poorer countries to grow by over 
5% per cent in 1994 and 1995. But 
the more sedate VU per cent 
growth expected in both years 
from the G7 countries compares 
well with the 1.4 per cent achieved 
in 1993. 


Liberalisation 
As the report shows, the global 
reach of the upturn owes much to 
the widespread liberalisation of 
capital markets. As a group, the 
world's poorer countries were able 
to attract annual net capital 
inflows of $94bn, on average, in 
the first three years of the 1990s. 
The average figure for the preced- 
ing seven years was a mere $9bn. 


This influx of investment capital 
continues to play a large part in 
ensuring these markets "emerge". 

There are familiar laggards In 
the global growth picture. Africa, 
for one, has received little of the 
new investment flows, suffering 
slight net outflows of capital in 
both periods. But the IMF expects 
that even Africa will achieve 3.3 
per cent growth this year, up from 
a meagre 1 per cent In 1993. 

The world has not seen this 
combination of freely flowing capi- 
tal and goods, and npar . nniw fwl 

economic growth, since the early 
years of this century. 

Market sentiment 

Why then are the financial mar- 
kets determined to spoil the party? 
As the IMF notes, long-term gov- 
ernment bond yields have been on 
the rise world-wide, increasing by 
an average of 2 per cent in indus - 1 
trial countries since January. On 
Thursday, the yield on long-term 
US treasury bonds briefly touched 
nearly 7.90 per cent, the highest in 
over two years. 

Not every shift in market senti- 
ment has a sound rationale. But 
the underlying pressure on both 
nominal and real interest rates 
worldwide can be traced to two 
doubts that did not cloud the pic- 
ture in the early 20th century. 
Then, the global capital market 
could rely on two things: stable 
prices and a large pot of rich coun- 
try savings. 

Prices are again relatively stable 
in t'hp main industrial countries: 
the IMF estimates consumer 
prices will rise only 2.4 per cent in 
the course of 1994. But the infla- 
tionary cycles of the 1970s and 
1980s are too recent to be forgot- 
ten. And low inflation cama after 
a long recession that has left 
unemployment at stubbornly high 
rates In Europe and elsewhere. 

Thursday's US bond market fall, 
which was triggered by unexpect- 
edly strong economic data, follows 
a pattern which Is likely to 
become familiar elsewhere as the 
recovery takes hold. Investors 
worry that national monetary 
authorities will not act quickly 
enough to stem inflation, because 
of political pressures to deliver 
higher growth. 

Yet not all of the rise in bond 
yields can be put down to inflation 
jitters. The rise in index-linked 
government bonds in the UK and 
Canada since February points to 
real pressures on Investment 
funds. Partly, this Is a predictable 
result of the pick-up in the cycle. 
But it also stems from the fact 
that governments, companies and 
developing countries are all bor- 
rowing at the same time. Some- 
thing has to give: the ministers 
and government officials assem- 
bled in Madrid should decide it 
will be them. 


Kevin Brown on the safety questions 
raised by the Baltic shipping tragedy 

What future 
for the ferry? 



Sea tragedy: The Herald of Free E n terprise, which capsized off Zeebrugge in 1987 with the loss of 193 lives 
The UK went further, passing 


S omehow, it has happened 
again. Seven years after 
the British vehicle ferry 
Herald of Free Enterprise 
capsized off Zeebrugge 
with the loss of 193 lives, the 
Estonia disaster has focused world 
attention on a question that ship- 
owners hoped had gone away: are 
roll-on; roll-off ships like these 
inherently unsafe? 

The answer will depend on the 
conclusions of the various inquiries 
Into the Estonia sinking, now 
thought to have cost more than 900 
lives. But If the inquiries decide, as 
seems likely, that the Estonia sank 
because water entered the vehicle 
deck, the consequences for the ferry 
industry will be dramatic. 

At the least, public opinion could 
force governments to insist on 
expensive structural changes to the 

iteri gn of new Ships, malting fham 

more expensive and less able to 
compete with aircraft and undersea 
train services like those through 
the Channel tunnel. At worst,' ship- 
owners could be forced to spend 
Vinnrirpris of millions of pounds On 
rebuilding wri sting ships to tougher 
safety standards. 

That would have serious eco- 
nomic implications, especially in 
Europe, where the speed and flexi- 
bility of vehicle ferries has made 
them indlspenslble to trade between 
continental Europe and the outly- 
ing economies in the British Isles 
and Scandinavia. More than 500 fer- 
ries cross the North Sea and the 
English Channel every day; world- 
wide, the number of such, ferries in 
use has risen to 2,158 this year from 
1,847 when the Herald capsized. No- 
one knows how much traffic these 
ferries carry, but they have the 
capacity to carry 9m gross tons of 
traffic a day - a third more than 
seven years ago. 

'Hie talk in shipping circles yes- 
terday was of waiting to see what 
caused the Estonia to sink, of not 
jumping to conclusions, of the pos- 
sibility that the disaster could have 
been caused by anything from an 
engine explosion to a mine left over 
from the second world war. But all 
the signs point towards a surge of 
water entering the vehicle deck 
through one of the main doors. 
Much has been done to Improve the 
safety of roll-on, roll-off ferries since 
1987. The International Maritime 
Organisation, the United Nations 
agency for shipping, agreed in 1968 
to raise the stability requirements 


1992 to phase in tougher require- 
ments for older ships. The rules 
also require safety improvements 
such as closed circuit television 
supervision of vehicle decks, and 
emergency lighting to help survi- 
vors of an accident reach safety. 


T he sinking of the Estonia, 
a ship 50 per cent-owned 
by the Estonian state and 
largely crewed by Esto- 
nians, has been a severe blow to 
this country of 1.6m people In 
only its fourth year of indepen- 
dence. 

The disaster has directly affected 
a larger proportion of the nation 
than is the case for Sweden, where 
most of the victims lived, or Fin- 
land, which played an important 
role In the rescue operation. 
Estonians also feel that it has 


tence and efficiency of their coun- 
try's shipping industry - and its 
ability to break free from the inher- 
itance of its past in the Soviet 
Union, where transport was expec- 
ted to be hazardous. 

A large white cross has been 
placed on a grassy knoll near Tal- 
linn’s Maritime Museum, with can- 


domestic legislation requiring all 
ships visiting UK ports to meet the 
full 1990 standards. This forced 
shipowners to scrap older ferries 
that could not be improved, or to 
transfer them to countries with less 
rigid safety standards. 

However, neither the UK nor the 
IMO addressed the biggest danger 
of roll-on, roll-off fames - the open 
vehicle decks running from one end 
of the ship to the other. 

The design of such ships dates 
back to the 1960s, when trade was 
picking up rapidly after the second 


quickly and emwantiy if cars and 
lorries could be driven straight onto 
their ships at the dockside and off 
again at the end of the journey. The 
easiest way to do that is provide 
one or more vehicle decks, accessi- 


ble through large doors in the hull, 
running the length of the ship. The 
design works best if the deck is 
uninterrupted by walls - known to 
mariners as b ulkhea ds - which 
complicate vehicle loading. 

The result is that the protection 
afforded by bulkheads below the 
vehicle decks is undermined by a 
huge and vulnerable open space in 
the middle of the ship. The space is 
perfectly safe while It remains dry. 
But small quantities of water enter- 
ing the vehicle d erica ran cause the 
ship to develop a heavy list and to 
capsize within a few minutes. 

An independent inquiry in the 
UK, conducted by Mr Justice Sheen 
after the winking of the Herald of 
Free Enterprise, concluded that this 
problem, called the free surface 
effect, was responsible for the disas- 
ter. The judge concluded that fore- 


fond to assist tiie families in dis- 
tress. The Estonian Cultural Foun- 
dation has also launched an appeal 
to build a monument to the mem- 
ory of the'ylctims. And the weekly 
Eesti Express has already collected 
over 580,000 kroons (£28.000) for its 
appeal on behalf of the victims’ 
families. 

In an interview yesterday with 
the FT, Mr Laar emphasised that 
early evidence showed the sinking 
of the ship was not the fault of 
Estonian crew or procedures. “We 
got information on Thursday night 
that, in the past 10 years, six other 
serious accidents had happened to 
ships of this type of construction. 


transverse bulkheads across vehicle 
decks would make roll-on, roll-off 
ferries uneconomic. The IMO also 
avoided any mention of vehicle 
deck bulkheads in its 1990 stan- 
dards, preferring to wait for the 
results of a UK-Danish technical 
study on design and construction; 
the next stage of the report win be 
released in November. But If the 
free surface effect ««nk the Estonia, 
the demand for action is likely to 
become irresistable. 

Much of the pressure for tougher 
regulations has «wng from survi- 
vors of major accidents, including 
the Herald sinking, who have given 
graphic first hand accounts of the 
chaos involved in a capsize. Survi- 
vors of the Estonia tragedy have 
begun to tell similar stories. 

There is a wealth of expert opin- 
ion on their side. The late Professor 
Dick Bishop, a leading naval archi- 


these accidents happened m calm 
weather conditions. Bat in a Baltic 
storm the disaster happened. 

“What seems to have taken place, 
from the reports I have had, is that 
the front part of the ship seemed to 
fall away and the water flooded in. 
That could not be crew failure and 
the inspection in Tallinn before the 
ferry failed showed no problems. 
Some people talk of aloud noise, as 
of a collision.” 

This possibility has also been 
raised by the testimony of one of 
‘the first Estonian survivors to 
come back to Tallinn, Mr Ain-Alar 
Johanson. On Thursday night, he 


tect who was also vice-president of 
Britain’s prestigious Royal Society, 
was a strong supporter of bulk- 
heads. Mr Alan Gilflllan, vice-chair- 
man of the safety committee of the 
Royal Institution of Naval Archi- 
tects, said yesterday that the 
Estonia sinking reopened the ques- 
tion of whether they should be 
made mandatory. 

Most shipowners say that it can- 
not be done- Inserting transverse 
bulkheads would cost up to £600,000 
for gat* ship, and would probably 
destroy their ability to compete 
with alternative forms of transport 
Longitudinal bulkheads, running 
from bow to stern, would pose fewer 
problems, but might also be less 
effective, they say. 

“These ships are inherently safe 
until something totally unexpected 
happens. They have done a wonder- 
fill Job for 30 yeans with very few 
accidents. It is important that we 
wait fin: the result of the inquiries 
into the Estonia, and don't jump to 
the wrong conclusions about what 
needs to be done, 1 * said Mr Jim 
Davis, chairman of the Interna- 
tional Maritime Industries Forum, a 
shipowners organisation. 

M r William O’Neil, 
the IMO secretary 
general, recognised 
the depth of con- 
cern yesterday by 
ordering a review of vehicle ferries 
by the ffiarMwin safety committee, 
which has powers to amend interna- 
tional regulations enforced by coun- 
tries accounting for 97 per cent of 
world shi p pin g tonnage. There are 
many issues before the committee, 
including the extent to which 
roll-on roll-off ferries can turn into 
death-traps in extreme circum- 
stances. 

Swedish and Finnisn operators 
say their crews are regularly drilled 
to cope with emergencies. But, as 
the Estonia showed, even the best- 
prepared crews and passengers can 
be quickly overcome when a ship 
ha g ins to list and sink. 

The horrific reports from the 
Estonia of panio-stxiken and disori- 
entated passengers clambering over 
one another to get out of the fast- 
sinking ship are evidence that 
emergency plans and exercises do 
not count for much in a ship that is 
capsizing or sinking rapidly. The 
television pictures of survivors and 
dead bodies in semi-swamped rub- 
ber rafts bear their own testimony 
to the effectiveness of life boats in 
the ww" circumstances. 

They also add to the pressure on 
governments and shipowners to 
restore public confidence about the 
safety of shipping. The lesson of the 
last seven years, however, is that 
there are no easy answers. 


said he had heard a "loud, metallic 
noise” a Utile before the ship begun 
to sink. 

Mr Indrek Tarand, top civil ser- 
vant in the Estonian foreign minis-: 
try, said: "Even though a ship 
called Estonia was wrecked and 
went to the bottom, it doesn’t mean 
that Estonia collapses - though 
this is a catastrophe that will be 
remembered for centuries.” 

Mrlvar Ralg, a member of parlia- 
ment for the Rural Centre party, 
said: “In the short term, people will 
be worried about us - we may 
again be seen as a country of disas- 
ters. 

“But on tiie other hand it can 
show how far we are part of 
another world. This was a ship 
built in Germany with mixed Swed- 
Ish-Estonian ownership and the res- 
cue operations were carried out by 
Swedes, Finns and Estonians. It Is a 
common tragedy for all of these.” 


thrown into question the compe- . killed. 


dies burning on both sides. Memo- 
rial services will be held through* 
out Estonia tomorrow. 

Ms RJlna Taglis, a shop manager 
who had come to pay her respects 
at the cross, said yesterday: “For us 
It is like a horror, like a time after 
the war when so many people were 


This parallel was also used by Mr 
Mart Laar, the outgoing prime min- 
ister, in comments he made in Fin- 
land on Thursday: he recalled the 
number of people who drowned in 
1944, escaping to Sweden in small 
boats when the Red Army came 
baric to Estonia. 

The government has set np a 


for new ferries from 1990 and in world war. Shipowners realised that 

cargoes could be transported more 


ing shipowners to place vertical 

Estonians feel the pain 

John Lloyd in Tallinn reports on reactions to the disaster 

There were no disasters because 



( 


-mi 

\.t * 





MAN IN THE NEWS: Ernest Hollings 


Protectionist of 
the old school 


S enator Ernest “Fritz” Hoi- 
lings of South Carolina 
hopes to make this the 
week that he changes the 

world. 

Mr Hollings intends to try to 
scupper the legislative package 
needed to implement the Uruguay 
Round of the General Agreement on 
Tariffs and Trade In the US. 

As the chairman of both the Sen- 
ate commerce committee and the 
appropriations sub-committee, 
which controls the Commerce 
Department's budget, Mr Hollings 
does have considerable influence on 
trade issues. 

His resistance has stirred memo- 
ries oF the US congressional veto in 
the late 1940s that prevented the 
Gatt from becoming a permanent 
organisation, like other children of 
the Bratton Woods conference such 
as the International Monetary Fund 
or the World Bank. 

However, the odds are strongly 
against Mr Hollings definitively 
derailing this Gatt bill. But even the 
delay is a terrible frustration to 
President Bill Clinton, who has 
already seen his hopes of reforming 
healthcare, welfare and campaign 
finance blocked by a recalcitrant 
Congress. 

Under the fast track procedure 
created to give presidents greater 
authority to negotiate trade agree- 
ments, the Gatt legislation, sent to 
Congress by Mr Clinton earlier this 
week, may not be amended. 

Members do have the right to 45 
legislative days to consider the 
package, and Mr Hollings has prom- 
ised that he will use that to hold 
hearings. *Tve got my 45 days and 
Tm going to use every bit of my 45 
days,” he said. 

That would take Congress beyond 
next Friday, when it hopes to 
adjourn, and even, beyond Novem- 
ber 8, when there will be elections 


for one third of the seats in the 
Senate and all of the House of Rep- 
resentatives. 

Using the calendar in this way is 
a standard legislative manoeuvre at 
the end of a congressional session, 
as tempers wear thin and members 
grow impatient to return to their 
districts to campaign. 

Still in jeopardy are measures 
such as the reform of the Snperfund 
legislation governing the clean-up 
of toxic waste dumps, a bill to pro- 
tect a large acreage or Californian 
desert from development and the 
last of the 13 spending bills the Con- 
gress must pass each year, covering 
the District of Columbia’s budget 

But Mr Clinton has made it clear 
that completion of the Gatt is his 
highest remaining legislative prior- 
ity. While many other bills are 
allowed to die, or are postponed, if 
they fall off the end of the legisla- 
tive calendar. Congress will be 
brought back to vote on the Gatt 
legislation. 

Instead of adjourning, it will go 
into recess, while the clock contin- 
ues ticking on Mr Hollings’s 45 
days. Senate leaders announced yes- 
terday that the Senate will come 
back into session on November 30 
and will probably vote on the Gatt 
bill the next day. 

The chances of a defeat for the 
Clinton administration in that vote 
are slim. There is a substantial 
majority in both houses in support 
of the Gatt legislation. 

Thus, the delay is only that It is 
extremely unlikely that Mr Hollings 
could muster a simple majority of 
51 votes in the Senate against the 
Gatt bilL There Is also an outside 
chance that manipulation Of parlia- 
mentary rules could raise the hur- 
dle to 60 votes. 

This is not Mr Hollings’s first bat- 
tle against a trade bill An 
out-and-out protectionist of the old 



school, he believes that the US regu- 
larly gives far more than it gets in 
trade deals, thus “tilting the 
playing field” away from US pro- 
ducers and consumers. 

In 1985, 1988 and 1990, he per- 
suaded Congress to pass legislation, 
imposing import quotas an textiles, 
in a bid to protect one of his home 
state’s principal industries. All 
three times the legislation was sub- 
jected to presidential vetoes. 

His protectionism often veers Into 
xenophobia and he is well known 
for his anti-Japanese statements 
and beliefs. A humorist, who often 
has crowds of lobbyists giggling In 
the aisles of his committee room, 
the many people that he has 
offended regard Mr HoUings's 
humour as deeply streaked with 
cruelty and racism. 

Former Senator John Tower, who 
became the butt of Mr HoUings's 
acerbic tongue during his unsuc- 
cessful attempt to win Senate con- 
firmation as defence secretary, 
called him “the Senate bully”. 


And black members of Congress 
were outraged last year when he 
quipped that African government 
officials attend international trade 
conferences so they can “get a good 
square meal” rather than “eating 
each other”. 

But one aide said Mr Hollings was 
the first congressional committee 
chairman to hire a black s taff direc- 
tor and has hired more women and 
minorities for his committee than 
any other Senate chairman. 

Even his supporters say they 
do not know whether his mouth 
runs In a higher gear than his dis- 
cretion, or he simply does not care 
who he hurts with his barbed 
remarks. 

With his opposition to Gatt, Mr 
Hollings has hurt Mr Clinton and 
become, in the process, the hero of 
a peculiar combination of right and 
left wing opponents who say the 
Gatt’s new World Trade Organisa- 
tion will take away US sovereignty 
and leave it unable to enforce its 
own consumer and environmental 
laws. 

“God Bless Fritz Hollings," said 
Mr Patrick Buchanan, the conserva- 
tive commentator who ran against 
former President George Bush in 
the 1992 presidential election. “We 
have 45 days to make the case for a 
new economics of American pa trio- 

Some argue that Senator Hollings 
may even have done President Clin- 
ton a favour. With tough elections 
ahead, there are many House mem- 
bers who would also like to delay 
their vote until after the election. 
And some Republicans who gener- 
ally favour the Gatt agreement 
would, nevertheless, prefer to deny 
Mr Clinton a legislative victory 
ahead of the election. 

Most members, however, would 
rather be spared a lame-duck ses- 
sion of Congress, and most US allies 
would rather do without the frustra- 
tion of yet another delay to complet- 
ing the Gatt 

George Graham 
and Nancy Dunne 


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FINANCIAL TIMES WEEKEND OCTOBER i/OCTOBER 2 1994 


he contrast between jet 
fighters which roar 
through the stratosphere 
at twice the speed of sound 
and nuclear submarines which 
creep silently through the ocean 
depths could hardLy be more 
extreme. 

But that is the breadth of busi- 
nesses British Aerospace is aimiwp 
to span if it can bring to a success- 
ful conclusion the current negotia- 
tions to buy the Barrow-based sub- 
marine maker V$EL. The two 
companies are locked in private dis- 
cussions about the price at which a 
friendly takeover might take place 
However, the fact that talks are 
taking place at all is another dem- 
onstration of the way in which the 
cut in global defence spending is 
forcing companies to consider merg- 
ers and alliances that would have 
been inconceivable five years ago 
The catalyst for a deal between 
the two companies is a battle over 
the contract for the next batch of 
nuclear hunter-killer submarines 
for the Royal Navy, in 18 months 
the ministry of defence will award a • 
contract for up to five Trafalgar 
class submarines, worth around 
£2J5hu. The contract will not go to 
VSEL on the nod, as it has done 
with previous orders. 

Thus far, the government has 
viewed nuclear submarines as a 
secret and vital technology that 
cannot be fully subject to the com- 
petitive purchasing reforms which 
have brought efficiency gains to 
other parts of the arms procure- 
ment programme. Now the cold war 
is over, the MoD has the confidence 
to demand a fixed-price bid to build 
the new submarines from a risk-tak- 
ing prime contractor who will bear 


Sea 

the losses if the programme runs 
over budget. 

VSEL badly needs the order. Sub- 
raarines are its main business, and 
if the next batch of Trafalgars goes 
elsewhere, the company will have 
little work for its vast covered Dev- 
onshire Dock Hall in Barrow. 

Yet VSEL is a small company, 
and has found it hard to persuade 
the MoD that it can take the risks 
involved on such a large contract. 
To bolster its chances, the company 
has husbanded the £250m of cash 
which it has made fr am the Trident 
nuclear missile submarines over the 
past decade. It has also formed an 
alliance with the US electronics 
company Loral, which would pro- 
vide the submarine's complex elec- 
tronics, and the hMUb in integrating 
them into the boat 

However, the decline in UK 
defence spending means that other 
predators are after the Trafalgar 
prize. Both GEC and BAe want to 
bid, and both have advantages. 

GEC owns the Yarrow shipyard 
on the Clyde where some of the 
Trafalgar work could be done. It 
also has enormous «»sh resources 
to back any bid, and is keen to 
expand further into prime contract- 
ing rather than merely supply com- 
ponents and sub-assemblies to BAe. 

BAe has no such reserves, but 
does have more experience than 
any other British company in man- 
aging large defence contracts. 
Bringing the millions of electronic 
components together and wiring 
them Into a submarine hull - rather 



change in UK defence 


Bernard Gray on the planned link between BAe and VSEL 



like making a ship in bottle - offers 
similar technical and managerial 
challenges to those of making 
advanced fighters. 

BAe is also keen to expand from 
being the prime contractor for air- 
craft to being the dominant defence 
contractor. It is already involved in 
the Horizon programme to produce 
the new generation of frigate, and 
its joint venture, BAeSema makes 
ship and submarine command and 
control systems. 


With two giants fighting over the 
shrinking procurement budget, 
VSEL is in danger of being 
squeezed out. It had considered a 
alliance with DML, the company 
which operates the Devonport dock- 
yard in Plymouth. DML’s work in 
refitting nuclear submarines is sim- 
ilar to the construction of the boats 
at Barrow, and there are many 
overlaps in the work. 

In the event. VSEL seems to have 
opted for the friendly embrace of 


one of the giants. Becoming part of 
BAe would give it the credibility it 
needs to become a prime contractor, 
while furthering BAe's ambitions in 
naval engineering. Such a deal 
would be financially advantageous 
for BAe: buying VSEL with shares 
would strengthen its balance sheet, 
while VSEL’s large cash pile would 
cut BAe's debt substantially. 

GEC could yet frustrate BAe's 
plans by counter-bidding for VSEL. 
ft could offer hard cash from its 


£2L$bn reserve which might well be 
more attractive than BAe's shares 
to VSEL's shareholders. However, 
GEC has looked at the submarine 
maker and decided not to bid, say- 
ing that it could win the Trafalgar 
contract without owning VSEL. 

The BAe approach alters the bal- 
ance of power, and GEC may recon- 
sider. However, the MoD might then 
raise objections, unhappy that a sin- 
gle company owns two of the 
remaining shipyards in the UK. 

If BAe wins, it could use the cash 
in VSEL’s balance sheet to back 
bids for other contracts, such as the 
Future Large Aircraft military 
transporter, or to help rationalise 
its commercial aircraft operations. 

However, the real motive of the 
deal is industrial consolidation. 
Declining defence spending is forc- 
ing companies to cut overheads, 
and mergers are the most obvious 
way to eliminate costs. In the US 
the process is proceeding rapidly, 
but the political barriers to concen- 
tration in Europe mean that the 
process has been slower. 

Outright cross-border mergers 
between, for example, BAe and Das- 
sault of France or DASA of Ger- 
many to produce one large military 
aircraft company would almost cer- 
tainly be stopped by national rival- 
ries and security concerns. 

Faced with limited opportunities 
on the continent, UK arms compa- 
nies are consolidating across busi- 
ness areas at home. Earlier this 
year GKN, the engineering com- 
pany which makes the Warrior 


armoured personnel carrier, bought 
Westland, the helicopter maker. 
The two are now being integrated 
into a single defence division with a 
unified management structure and 
marketing team. 

Since merger talks between GEC 
and BAe broke down a year ago, the 
UK defence industry has polarised 
further into two camps. BAe is try- 
ing to extend its stranglehold of 
large project management and the 
integration of complex systems to 
make complete military hardware. 
It wants to build fast jets, transport 
aircraft, attack helicopters,- ships 
and submarines and would proba- 
bly have tried to buy Westland if 
GKN had not started with an 
almost unstoppable shareholding. 

GEC has also been extending its 
stranglehold on the electronics and 
avionics business. In the past year, 
for example, it has acquired most of 
the remnants of Ferranti from the 
receivers. Both are. however, hedg- 
ing their bets by forming cross-bor- 
der alliances. GEC with Thomson of 
France in sonar, BAe with Matra of 
France in missiles. More such deals 
are likely to fellow and both compa- 
nies are also both involved in the 
biggest collaborative programme of 
all, the Eurofighter. 

The bid for VSEL is part of the 
first phase in European defence con- 
solidation. The next, and larger, 
phase will be the decisive one with 
the two UK camps either merging 
with each other or combining with 
similar companies on the continent. 
Which route is taken will depend on 
whether the political reluctance to 
contemplate a truly European 
defence industry thaws faster thnn 
the opposition within BAe to a 
merger with its old rival. 



5 






.1 ... 




■ V 



Testing journey to 
the party’s roots 

Tony Blair, UK opposition leader, needs to prove 
Labour shares his policies, says Philip Stephens 



M r Tony Blair has 
a straightforward 
task next week. 
He must demon- 
strate he can command the 
party he was elected to lead. 
When he has done that, he can 
begin the tougher job of mak- 
ing Labour safe for govern- 
ment. 

Since his leadership victory 
in July, he has chosen to 
address a wider audience than 
the activists gathering in 
Blackpool for their annual con- 
ference. 

The voters of middle 
England have been told that 
here is a Labour leader they 
can trust. Mr Blair under- 
stands economic realities; he Is 
no Blend of yobs or criminals; 
he cares more about discipline 
than political correctness in 
the classroom. 

The prospectus has been an 
attractive one. The unusually 
kind (occasionally gullible) 
media have applauded his 
youthful self-confidence. The 
Conservatives have been 
wrong-footed, unsure whether 
to attack him directly or to 
concentrate their fire on the 
unreconstructed socialists 
lurking in the shadows. 

But the new leader has to 
show that a message tailored 
to the aspirant classes of 
southern England has the con- 
sent - let alone the enthusiasm 
- of his party's activists. 

After 15 years in the political 
wilderness, its leadership has 
rid Labour of the self-indulgent 
extremism which ensured the 
electoral defeats of the 1980s. 
At its roots, though, many pre- 
fer still the party's heart to its 
head. The activists cling to the 
comfortable certainties of post- 
war Labourism. 

An inviolate welfare state, a 
tax system that redistributes 
wealth and a privileged place 
in society for the unions head 
the list of cherished icons. 

Mr Blair comes as a stranger 
to the culture of activism. 
Despite his overwhelming lead- 
ership victory over Mr John 
Prescott and Mrs Margaret 
Beckett, he is better known in 


the media than wi thin his own 
party. 

IBs spell after the 1992 gen- 
eral election as home affairs 
spokesman gave him a profile 
as a politician who preferred 
the instincts of the respectable 
working classes to those of the 
liberal intelligentsia in shaping 
his approach to crime. 

But unlike Mr Neil Kinnock 
or Mr John Smith, he has 
never been a party insider, a 
politician at home in the 
smoke-filled rooms in which 
Labour traditionally has done 
its business. 

Even among many Labour 
MPs the unclubbable Mr Blair 
is an unkn own, quantity. More 
than one shadow spokesman 
has sought the advice of jour- 
nalists at Westminster on how 
they should approach the new 
leader. 

Some on the far left are 
already talking the familiar 
language of “betrayal". There 
are mutterings higher up in 
the party about the leader’s 
habit of reinterpreting in inter- 
views long-cherished policies. 

The traditionalists in the 
unions will be looking for the 
moment to reassert their influ- 
ence. During the conference 
debate on the economy they 
will test his commitment to a 
minimum wage. 

Leadership pledges to spend 
only what the nation can 
afford do not win cheers at 
Labour conferences. 

Mr Blair has sought to antic- 
ipate the critics. His strategy 
has been to use the leadership 
honeymoon to seize as much 
ground as possible for the 
modernising cause. In spite of 
their different backgrounds 
and one or two private differ- 
ences. Mr Prescott has proved 
a loyal deputy. 

So the Labour leader 
hijacked a routine press confer- 
ence on education policy to 
emphasise his sympathies lay 
with the concerns of parents 
rather than with the narrow 
interests of the teaching 
unions. 

He also shunted Mr Larry 
Whitty out of the post of gen- 


eral secretary at Labour's Wal- 
worth Road headquarters. Mr 
Whitty was too close to the old, 
traditionalist guard. 

Then there were the care- 
fully scripted home truths 
delivered to the Trades Union 
Congress in BlackpooL His dec- 
laration that there would be no 
favours for the unions was fol- 
lowed by a shift in policy on 
Ireland to tilt the party away 
from its traditional attachment 
to the nationalist cause. 

This week was chosen to 
stake out his territory on the 
economy. Statist solutions 
were no longer relevant Nor 
were the old divisions between 
private and public sectors. A 
Labour government would not 
seek to spend its way to pros- 
perity. 

Crucially, the party’s social 
ambitions could not be met by 
pushing up taxes. A better 
health service and help for the 
poor could be delivered only 
through economic growth. Mr 
Gordon Brown, the shadow 
chancellor, reinforced the mes- 
sage with an exhaustive review 
of the constraints imposed by 
the realities of international 
competition and technological 
change. 

In some ways the symbolism 
was more important than the 
substance. Mr Blair is not will- 


Despite Blair’s 
leadership victory, 
he is better known 
in the media than 

in his own party 

ing yet to talk in detail about 
tax awrt gp ending - Mr Kinnock 
and Mr Smith before him had 
already jettisoned much of the 
ideological baggage. But the 
terms of Mr Blair's enthusias- 
tic embrace of the market 
economy made it sound like he 
meant it 

So the party will discover in 
Blackpool that it has ditched 
50 years of attachment to the 
fatally seductive vision of a 
socialist paradise created by 


pulling a few economic levers 
or nationalising half a dozen 
industries. Mr Blair has to 
start putting something in its 
place. 

The Labour leader, we are 
told, has some answers. His 
speech in the Empress Ball- 
room on Tuesday afternoon, 
the most important of bus polit- 
ical life, will start to fill the 
vacuum. 

It will offer a programme to 
modernise industry and create 
a competitive economy; and a 
nation at work not on benefit 
An education and training rev- 
olution and a willing partner- 
ship between public and pri- 
vate sectors rather than 
old-feshioned demand manage- 
ment will provide the instru- 
ment of change. 

The promise of economic 
competence and social 
improvement will be accompa- 
nied by Mr Blair’s new empha- 
sis on social responsibility. A 
commitment to the notion of 
society Involves an equivalent 
determination to stamp out 
antisocial behaviour. It also 


means higher standards in gov- 
ernment and the replacement 
of quangos with accountable 
democracy. 

He calls this ethical social- 
ism. A more accurate descrip- 
tion is social democracy. The 
basic judgment (shared inci- 
dentally by many senior Con- 
servatives) is that the election 
will be won by the party which 
promises opportunity and secu- 
rity in a turbulent, unpredict- 
able world. 

The overwhelming advan- 
tage that Mr fflair has over his 
predecessors is that his ideas 
match his image. He looks and 
sounds modem, reasonable, 
intelligent. This week's opinion 
polls have underlined the 
strength of his position - and 
the potential market for his 
message. 

But the language of princi- 
ples is not enough. Mr Blair 
has to offer substance if he is 
to provide definition to the 
sometimes vague rhetoric. He 
must convince us also that his 
party's policies are indistin- 
guishable from his own. 


I mage is everything," says 
Andre Agassi, batting 
tennis halls oft mountains 
and the Queen of England 
in a TV commercial for a Japa- 
nese camera. It is a contempo- 
rary truism with which this 
week the Walt Disney Com- 
pany, creator of images 
beyond number and phenome- 
nally conscious of its own, 
could only ruefully agree - 
after pulling the plug on its 
latest grand project 
In Washington, where most 
business is politics, there has 
not been a local story for years 
quite like Disney's aborted his- 
tory theme park next to a civil 
war battlefield 35 miles out- 
side the nation's capital. In 
comparison, the ups and 
downs of presidents, senators, 
governors and mayors have 
seemed almost trivial. 

The park has pitted the elite 
against the hoi poUoi, the hor- 
sey set against the bus rider, 
environmentalists against 
advocates of economic growth, 
historians against historians, 
even government against gov- 
ernment 

It began last November 
when Disney announced it had 
taken an option to buy 3.000 
acres of land just outside the 
small town of Haymarket in 
Prince William County, Vir- 
ginia, dose to the Mlling fields 
of Manassas, as the site for a 
“historic theme park”. In Jan- 
uary, it fleshed out the project, 
envisaging 2^00 houses, 1,300 
hotel rooms, and nearly 2m 
square feet of retail space, to 
cater for 5m-6m visitors a year 
when it opened in 1993. The 
price tag would be about 
$650m for the park, and Slbu 
for everything. 

Disney wanted state and 
county financial help - and 
got it George Allen, the newly 
installed Republican governor 
of Virginia, saw the project as 
the leitmotif of his pro-busi- 
ness administration. In March, 
he rammed through the state 
legislature 9 1 63m in grants. A 
week ago. 5130m in new road 
spending was authorised by 
county and state officials. 

The federal government, 
however, was looking increas- 
ingly askance at issues under 
Its jurisdiction, including air 
and water quality and the wid- 
ening of interstate roads. Ben- 
jamin Forgey, the Washington 
Post's influential architectural 
critic, also kept chipping in 
with pungent articles on the 
dangers of urban sprawl. But 
Disney still believed it would 
win the bureaucratic wars. 

It was the image war that 


Washington’s 
elite has beaten 
the hoi polloi 
and Disney, says 

Jurek Martin 

History 
is not 
bunk 

felled it Haymarket is a mod- 
est town, near Highway 66. 
But it is a gateway to the 
rolling Virginia Piedmont 
valleys that contain some of 
the finest horse country 
estates in the east - filled with 
weekend retreats for Washing- 
ton's powerful. 

These include the late Jac- 
queline Kennedy Onassis, Jack 
Kent Cooke, who owns the 
Washington Redskins football 
team. Pamela Harriman, US 
ambassador to France, Senator 
John Warner of Virginia, once 
married to Elizabeth Taylor, 
Alice Marriott of the hotel 
family, the Graham family of 
the Washington Post, and 
media glitterati by the dozen. 

T heir mood was exqui- 
sitely captured in a 
Washington Post 
article in April head- 
lined; “ Eeeeek! A Moose! Step 
on it!” Bat these influential 
and sophisticated people - 
some of whom listened to the 
populist talk shows favouring 
the Disney plan - knew they 
needed better arguments than 
the preservation of their com- 
fortable lifestyles from hordes 
of Coke-swilling, shorts-wear- 
ing tourists in buses and 
rental cars. 

They got them from the 
guardians of America's heri- 
tage. A Who's Who of US his- 
torians, many hardened by the 
bitter battles of academe, leapt 
into the fray. The most promi- 
nent Included David McCul- 
lough (Harry Truman and the 
Panama Canal and president 
of the Society of American His- 
torians), Arthur Schlestnger Jr 
(THE authority on presidents), 
James McPherson, C Vann 
Woodward and Shelby Foote 
(all doyens of the civil war and 
the south). 

Disney mastered a couple of 


tame historians of its own, but 
they were outnumbered and 
outclassed. They were also 
hampered by the fact that it 
was never exactly clear how 
the company intended to 
depict “history" In its theme 
park, beyond the idea of a 
“water ride” in the manner of 
Lewis and Clark, the early 
American explorers. 

The anti-Disney historians, 
calling themselves Project His- 
toric America, focused their 
fire an two fronts. For a start, 
they could not see the point of 
locating the project within an 
hoar’s drive of 16 civil war 
battlesites, 13 historic towns 
and 17 historic districts, most 
of which have indeed been lov- 
ingly preserved, including 
Manassas itself. 

The second string to their 
bow might have been bor- 
rowed from the French, always 
ranting on about American 
cultural imperialism. As David 
McCullough put it: “We have 
so little left that Is authentic 
and reaL To replace what we 
have with plastic, contrived 
history, mechanical history, is 
almost sacrilege.” 

When Congress finally got 
into the act with hearings in 
June, this was the message 
they heard - that US history 
was too important to be left to 
Disney to reinterpret Disney 
executives. Governor Allen 
and county officials all 
weighed in with counter-argu- 
ments, but the public relations 
war among the opinion mak- 
ers was one-sided. 

Even so, the idea that Dis- 
ney gave up simply to avoid 
the disastrous image of histo- 
rians and socialites lying 
before its tractors stretches 
credulity - even for a com- 
pany known above all for its 
lovable Mouse, Duck, Snow 
White and Lion Ring. 

However toe battle to over- 
come such opposition Is not 
what a stretched Disney man- 
agement, weakened by death, 
Illness and resignation, needs 
at present. With attendance 
flat or down at all of Its theme 
parks except Tokyo (where toe 
Japanese have no problems 
with American history), but 
its animated film division on a 
huge roll, toe company is cast- 
ing around for new directions 
- most likely into commercial 
television. 

So it has folded its Hay- 
market tent. Local business- 
men said yesterday they were 
sad, bat In the Piedmont 
valleys the white wine spritz- 
ers will be flowing freely this 
weekend. 


Elderly's mortgage worries 


Yom Mr A B Craven. 

Sir, The survey by BMRB for 
.Building Societies Associa- 
c referred to by Alison 
i,, ("Societies hang on to 
image”, September 22) 
_» 01 accurate in its conclu- 
i c8 - fp how building societ- 
Howtarded by the public, 
icnortt would appear to 
{tan. tlwlings of one sec- 
in p^y- . . 

feelings \ it ignores the 

ace paP® 0 old 

SortffM*** 0 were given 
release sct as equity 
1990s. Thes-n the late 

b ke 1 UPby 
tn speak of, d? income 

report* W tht dowing 
K° on bow P societ- 
would rise over alues 


The opinions of financial 
advisers and building societies 
have proved disastrous and 
have left the majority of the 
elderly concerned, with mort- 
gage debts rolling up at a hor- 
rendous rate. 

The attitude to these prob- 
lems by the building societies 
can only be described as cal- 
lous and intransigent When 
the Home Income Plan Support 
Group raised the matter with 
the BSA, its deputy director- 
general responded by denying 
any liability on the part ol the 
building societies. In time he 
may well prove to be in error. 
A B Craven, 

Home Income Plan Support 
Group, 

White. Cottage, Elsmmwick, 
Burton Pidsea, Hull HU12 SBP 


LETTERS TO THE EDITOR 

Number One Southwark Bridge, London SE1 9HL 

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

Competition best way to harness talent 


From Mr Francis Duffy. 

Sir, I am not surprised Colin 
Amery did not like the results 
of the architectural competi- 
tions for the South Bank and 
Cardiff Bay Opera House 
(Architecture: “The tyranny of 
the few”, September 26). Every- 
one to his taste. Not everyone 
likes the results of the archi- 
tectural competitions In which 
Amery has sat on the jury. No 
one would argue that those 


results brought the competi- 
tions system into disrepute. 

1 cannot comment on the lay 
jurors that Amery has dealt 
with, but I have yet to come 
across a group of lay judges 
who quietly acquiesced in the 
views of overpoweringly artic- 
ulate architects. 

Architectural competitions 
have been designed to be the 
very opposite of ‘!jobs for the 
§g^:JQ8jhe.day Amery’s 


piece appeared, the RIBA-nm 
anonymous competition for the 
conversion of Baltic Miffs in 
Gateshead was won by a Domi- 
nic Williams, an “unknown” 
architect, the 29-year-old 
antithesis of an old boy. This 
RIBA competition gave an 
architect, too young to be 
“fashionable” in Amery’s 
sense, the opportunity to win 
an important commission. 

Gateshead has set the stan- 


dard for lottery-funded pro- 
jects. I can think of no better 
way than properly run archi- 
tectural competitions for har- 
nessing the broadest range of 
architectural talent to meet a 
variety of emerging needs. 
Francis Duffy, 
president. 

Royal Institute of British 
Architects, 

66 Portland Place, 

London WIN 4AD 





Status of Lloyd’s agents as 
‘third part/ unexplained 


Prom Mr J Hamilton Stutt 

Sir, The circular which has 
just been sent by Lloyd’s debt 
collectors to some 14,000 
Names contains the truly 
astonishing statement that 
“...any claim you may have 
against third parties (such as 
your member's and other 
agents) does not affect your lia- 
bility to make payments to 
Lloyd’s immediately”. 

So our member's and 
ing agents, the 
Names have 
savings 
nothing 
has 


tens of thousands r other 
unfortunate Name< would 
have signed up. 

What more sku) JSgery car 
we now expect a societ 


they have no ry 01 car^ 


way T 


along 



-ally 
.osts to 
^m, John 
,m Madrid- 
. f conference on 
l banking in Mad- 


„i UAom aqjf 
dK is . 

allow banks to use internal 
risk models to allocate capital 
for trading could lessen the 
burden by changing the "style 
and quality” of supervision. 

He suggested costs could 
also be reduced by managers 
and supervisors jointly design- 


i 

-mo ■mss'Va, i 

saaiAias ^nnpods'&a- 
oj ms‘913 uiojj; ‘suorfntv _ 

to obtain relevant Information 
immediately and at lower cost 
Mr Pferez said the multiplica- 
tion of capital requirements 
meant that supervisors were 
"at risk of applying rules that 
are as complex as they are 
lacking in accuracy”. 


-^teE^opoan wor^Qis exp 


or 
Kith 


proved iftty of 

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FINANCIAL TIMES WEEKEND OCTOBER 1 /OCTOBER 2 1994 


COMPANY NEWS: UK 


Warning that margins will continue to slide follows losses of £7m 


Hi-Tec Sports shares dive 33p 


By Pater Pearce 

Shares in Hi-Tec Sports 
tumbled by 33p to 45p yester- 
day as the sports shoe and lei- 
sure wear company reported a 
fall into headline losses in the 
six months to July 31 and 
suggested that margins would 
continue to slide until at least 
the spring of 1995. 

In a period of significant 
changes within the group, pre- 
tax profits of £776,000 were 
turned into losses of £7.1lm 
after exceptional charges of 
£5.9Zm and Interest payable 
£401,000 Higher at £L54m. 

The restructuring was now 
over, said Mr Frank van Wezel, 
chairman and 53.19 per cent 
shareholder, and the loss-mak- 
ing activities had been “dealt 
with". 

Apart from the closure of the 
European subsidiaries, the 
most important event has been 
the disposal of 60 per cent of 
Cofex, the Dutch company 
which makes fashion Jackets 
under the Bad Boys brand 
name. In the period it incurred 
unchanged trading losses of 
£1.95m, and accounted for 
£202,000 of interest charges and 
£5.1m in respect of goodwill 


tfl-Teo Sports 

Share prtos rataflva to the 
FT-SE-AAfl-Shara Index 
10Q*r- 


Share puce 
fpence} 
WO 


1888 89 90 81 82 

Sows FrGMpH*® 

previously written off. 

Mr van Wezel said that the 
losses this time masked under- 
lying growth in the the group's 
core rugged outdoor footwear 
and were different from the 
recessionary losses of two 
years ago. 

Group turnover edged ahead 
to £60.4m (£59. 4m), including 
£3. 73m from discontinued 
operations. On continuing 
activities, margins were down 
about 2 per cent across the 
group. Stripping out Cofex, 
pre-tax profits fell to £lm 
(£2.9m) on turnover up at 


~ Si "• 

*» ; 60 

-1 a, 

_J l »■«..« 4Q 

» 1994 


£56.7m (£53 .9m). 

Mr Peter Butler said that 
having never been properly 
monitored, group stock was 
now being managed at lower 
levels and that these stock 
reductions would continue. 
Stock provisions had been 
raised by £500,000. Discounting 
seasonal swings, debt bad been 
reduced by £5.lm to £21 .3m. 

In North America, operating 
profits fell to £1.2m (£2m) on 
turnover of £23 l 2 m (£23.6m). Mr 
van Wezel said a sudden fall- 
off in the fiashionabffity of the 
Magnum law enforcement 


boots among urban youth dis- 
guised a 22 per cent rise in 
sales of the core hiking hoots. 
There was also a hiatus when 
the group repositioned its prod- 
ucts and withdrew them from 
discount retailers. Same £4m of 
sales were lost 

In the UK and Ireland profits 
eased by £100,000 to £700,000 on 
sales up 9 per cent to £21.6m. 
Sales of brawn boots rose from 
12 to 19 per cent of the total 
South Africa did well since the 
elections, accounting for some 
£5m of the rest of the world's 
£8.Zm <£6.Sm) total. Profits 
were £500,000 (£700.000). 

The grbup has changed its 
auditor from KPMG Peat Mar- 
wick to Touche Boss. It has 
also changed its year-end from 
January 31, “in the middle of 
our delivery season" to April 
30. 

The Interim dividend is l.fip 
(l.25p), increased for the 15- 
month period. The directors 
are taking up the scrip alterna- 
tive, so the cash element is 
covered 1.4 times, even though 
losses were 15.6p (earnings 
1.4p) per share. Forecasts for 
the year to January 31 have 
fallen to £2m or earnings of 3p, 
for a prospective multiple of 15. 


Higher sales to US boost Renishaw 


By David Blackwell 

Higher sales to its main 
market in the US helped Renis- 
haw, the specialist measuring 
equipment group that exports 
91 per cent of its output, to lift 
annual profits by 15 per cent. 

Hie shares closed ahead lip 
at 288p yesterday. 

Pre-tax profits in the year to 
end June 30 rose from £7.i4m 
to £8 An on total sales ahead 
from £48m to £50 Jm. Operat- 
ing profits were ahead from 
£194m to £7.1?m. 

Sales in the US grew by 
almost 15 per cent from £17 An 
to £19.7m. Mr Ben Taylor, 
assistant chief executive, said 
that the US economy was 
improving enough to bring 
benefits. 


In addition, the group had 
been successful in selling 
so-called retrofit products - 
equipment that can be fitted to 
improve gristing machining 
centres' control systems. 

In contrast, sales to Ger- 
many fell from £8.44m to 
£6.8310, while sales ta Japan 
eased from £6An to £5. 8m. 
This was offset by improving 
sales to other overseas coun- 
tries (up from £4.7m to £6m) 
as the group developed new 
markets in Korea, Taiwan, 
India, Malaysia and Hang 
Kong. 

It also opened offices in Sing- 
apore and Beijing. 

The group, which success- 
fully brought a new £1.5m 
machining facility on stream 
last April, spent £3.5m on 


research and development and 
£2J5m on associated engineer- 
ing. It - intends to maintain 
expenditure at the same levels 
this year, and will be 
launching further new prod- 
ucts. 

Interest receivable fell from 
£2 An to £1.05m because of 
lower rates. Net cash rose from 
£i9.4m to mam 

Earnings per share rose from 
I0.3p to I2p. A final dividend of 
4.4p (4p) is proposed, taking 
the total tor the year to 65p 
(&5p). 

The group is also making a 
l-for-10 scrip issue. 

• COMMENT 

A buoyant final quarter 
brought Renishaw in ahead of 
expectations. With its high 


operational gearing, it does not 
take much of an increase in 
turnover to move profits, and 
substantial Improvements 
appear In sight Its new scan- 
ning devices and the Raman 
Imaging microscopes are sell- 
ing well, and the group is keep- 
ing the pressure up on bath 
new products and the search 
for new markets. At the same 
time costs have been tightly 
controDed, and it is generating 
cash. Interest rates have also 
moved in its favour. Like-for- 
like sales in German; and 
Japan are up in the first 
months of this year, indi catin g 
further benefits to come. How- 
ever, this is reflected in a 
prospective multiple of 21 
if profits hit £9.5m this 
year. 


Buying a spray to cut the mustard 

Roderick Oram on why Reckitt & Colman is selling its famous brand 

W hat kind of company Chemical 

- and chief executive The Column's sale was also 
- can sell not one harder for the company. 


W hat kind of company 
- and chief executive 
- can sell not one 
but both Its birthrights within 
six months? 

Reckitt & Column is the com- 
pany. Mr Vernon Sankey the 
chief executive and Reckitfs 
Blue and Colman's Mustard 
are the birthrights with roots 
going back 180 years. No prod- 
ucts could be more synony- 
mous with their maker. 

Turning its back on clothes 
whi teaers and English mus- 
tard, it aims to become "one of 
the leading household products 
groups in the world" selling 
toe likes of air freshners, lava- 
tory cleaners and disinfectants. 

To that end it agreed to pay 
$1.55bn (£980m) this week for 
L&F Household, a US maker of 
snch mundane products, and 
put Colman's up for sale to 
help pay for it 
The news came out of the 
blue for Norwich, the East 
Anglian town which has been 
home to Colman's since Jere- 
miah Cohn an started milling 
mustard near there In 1814. 
Five generations later, the 
company is chaired by Sir 
Michael Colman, the last 
employee from toe family. 

"There is a great deal of sur- 
prise and shock," one citizen 
said. "People have found it dif- 
ficult to came to terms with 
toe sale and 'what might hap- 
pen to the 750 jobs here." 

Because Colman's is a bigger 
business than Blue and so 
closely identified with Nor- 
wich. the psychological impact 
was far greater than Hull suf- 
fered in March. The Humber- 
side cUr where Isaac Reckitt 
bvult bk enterprise from 1540 
was then that the business 
«ad been'<cpid to Holliday 


Chemical 

The Colman's sale was also 
harder for the company. 

"Emotionally it was very, 
very difficult," Mr Sankey 
says, leaping up from a chair 
in his London office and rush- 
ing over to the largest picture 
on the wall. "That was my 
office. That was my car," he 
points out on an aerial photo- 
graph of the Norwich opera- 
tion. He began his Reckitt 
career there, aged 22, in 1971 
and returned in 2985 to become 
manag in g director. 

"‘How could you sell Col- 
man's? We lived there’, my two 
oldest children said to me this 
week. But within a few min- 
utes they understood the strat- 
egy perfectly,” Mr Sankey says. 

Apparently a highly persua- 
sive communicator, be had 
also convinced Sir Michael or 
the merits. Colman’s would be 
better off with a food company 
rather than a seller of house- 
hold products, the chairman 
said earlier in the week. 

I t was all part of the compa- 
ny's evolution, Mr Sankey 
says. Reckitt merged with 
Colman in 1938 although they 
had been pooling their over- 
seas activities from 1913. The 
group continued to function in 
largely separate parts until 
1970. Then, working to a blue- 
print from McKinzey. the man- 
agement consultants, it 
adopted a typical multination- 
al's structure. 

More importantly, the first 
historic roots were tom up: the 
headquarters were moved from 
Hull to the west London home 
of Chiswick Products, of 
Cherry Blossom shoe palish 
and Mansion floor polish fame, 
which joined the group in 1954. 



Vernon Sankey: emotionally it 
was very very difficult 

The tfblish factory is long 
gone, its art deco office rede- 
veloped into a coolly modern 
block in the 1980s and the 
northern hemisphere chunk of 
the shoe polish business sold 
in 1991. 

Diversification gripped the 
group in the mid-1970s as it 
picked up makers of beer kits 
in the UK and needlework kits 
in the US. wine makers in Aus- 
tralia and jewellery makers in 
New Zealand to compensate for 
slow growth in its core mar- 
kets. 

By 1980, however. Reckitt 
had decided it could grow the 
original businesses if it focused 
on them. Divestments followed 
rapidly. 

Three big acquisitions in the 
past 10 years - Airwick, Boyle- 
Midway and L&F for some 


S3^bn - have pushed house- 
hold products, toiletries and 
over-the-counter drugs to 
the fore and food to the 
rear. 

What was Mr Sankey’s role 
in all this as a corporate strate- 
gist in the 1970s, a line man- 
ager in the UK, the Continent 
and the US in the 1980s and 
chief executive since January 
1992? 

T just happen to be toe per- 
son at the front Focusing on 
me would not help in terms of 
the culture we’re trying to 
develop to engage the hearts 
and minds of toe people in the 
company." 

T eam work is the ethos, 
today’s equivalent of the 
paternalistic concern of 
the Victorian Redtitts and Col- 
mans. Everybody goes through 
"personal development 
reviews". "We give mutual 
help on technical and personal 
shortcomings," Mr Sankey 
says. 

Does he go through the pro- 
cess? “Too right! Too right!," 
he says. 

According to bis colleagues 
be is trying to curb his inclina- 
tion to chip in his thoughts 
first and to make excessive 
demands on people. On the 
plus side he is the modem 
team leader hugely energetic, 
very encouraging, quick to 
learn and analyse. 

As yet. the City knows little 
of this side of Mr Sankey and 
Reckitt. It likes the strategy 
but thinks the company* is con- 
servative and faces a stiff man- 
agement challenge to meet its 
global ambitions. 

The company's shares fell 
sharply on news of the L&F 
acquisition. 



Ash & Lacy advances 29% 


An ail-round divisional 
improvement at Ash & Lacy 
together with higher margins 
enabled toe engineering group 
to raise pre-tax profits by 29 
per cent from £l-57m to £2.02m 
in the half year to July 1. 

Turnover rose by 7 per cent 
to £30.6m (£28.7m). There was a 


strong advance in UK galvanis- 
ing and non-ferrous metals, but 
manufacturing and French gal- 
vanizing experienced further 
reduced activity. 

Earnings per share came to 
5.2p (3.77p) while the interim 
dividend has been main lamed 
at 2.5p. 


| DIVIDENDS ANNOUNCED 


ft Lacy Int 

_^45Jp*w8rtifig bit 


Rafifahaw" 

Watannanr^j*^^ 
DMdends sftowniir^ 


Cones - 

Total 

Total 

ponding 

lor 

lost 

dividend 

year 

year 

2.5 

. 

6.4 

7 

- 

22 

0.5 

- 

1 2 

14 

110 

. 100 




Eto/fcJendn s/xwn ahsv 

increased capital. 


Chairman 
of NFC to 
retire at 
end of year 

By Simon Davies 

Just 10 weeks after the 
surprise departure of its chief 
executive, NFC Holdings, the 
transport group, has 
announced o*at its chairman, 
Mr James Watson, Is to retire 
at the end of toe year. 

Mr Watson had increased trie 
executive dories at the end of 
August, following toe sodden 
resignation of Mr Pet e r Sher- 
lock. However he said he 
would not delay his departure 
if a chief executive could not 
he fiound before December 19. 

Mr Watson Is to he replaced 
by Sir Christopher Bland, who 
made an estimated £9m from 
selling his share options in 
LWT, of which he was chair- 
man, after K was acquired by 
Granada in February. 

Mr Watson will be 60 at toe 
end of the year, and be told 
non-executive directors of his 
plans to retire last March. 

Mr Watson said be wanted 
his replacement to play a key 
role in choosing toe new chief 
executive, and was keen for 
Sir Christopher to start as 
soon as possible. He will work 
three days a week. 

NFC’s shares rose 5p to 181p 
yesterday, as Sir Christopher 
was seen as likely to improve 
toe company's Image in the 
City, winch had beat shaken 
by a string of disappointing 
results, and concerns over 
strategic direction. 

Mr Sherlock was toe first 
outsider to be brought into 
NFC at top management level. 
He Instigated a strategic 
review, merging the two larg- 
est subsidiaries, and focusing 
on the group's higher value 
added businesses. 

However, investors were dis- 
appointed by the amount of 
time it was taking for the 
improvements to be translated 
into profits. 

Mr Watson was key to the 
appointment of Mr Sherlock, 
who fought off internal sup- 
port for the candidacy of Mr 
Robbie Burns, a hands-on 
manager and director who had 
successfully expanded NFC's 
logistics operations. 

Mr Burns resigned earlier 
this year, but he reversed his 
decision after Mr Sherlock’s 
announcement. Analysts 
suggested that Mr Watson's 
retirement might smooth the 
way for the appointment of Mr 
Burns as chief executive. 

Mr Watson has worked with 
NFC since 1968, presiding over 
a dramatic transformation of 
the company from a paternal- 
istic Government logistics 
group, to a substantia] listed 
company. 

He said he planned to focus 
on other business interests, 
which include the chairman- 
ship of Watson & Philip, the 
Scottish retailer, and director- 
ships of National Express, 
He rily s Group and Gartmore. 


All-round 
growth boosts 
Chesterton 

By Simon London, 

Property Correspondent 

Chesterton International, toe 
property agency and consul- 
tancy which made its Stock 
Exchange debut in June, has 
reported an increase in full 
year pre-tax profits from 
£3.3m to £5. 2m, beating its 
forecast at flotation. 

Turnover increased to 
£55. 8m (£48.8m) reflecting 
growth in both fee-earning 
advisory business and agency 
commissions. Agency income, 
which depends heavily on the 
level of trading activity in toe 
property market, accounted 
for 31 per cent of turnover, up 
from 28 per cent. 

Mr Giles Ballantine, chief 
executive, said that all regions 
of the UK showed strong 
growth. The company’s offices 
in toe North of England and 
Scotland turned in especially 
strong performances, with 
turnover rising to £8.4m 
(£6m). Revenue from London 
offices grew by 12 per cent to 
£23. 6m, about half of UK torn- 
over. 

Despite its position as one of 
the largest UK agents, Chester- 
ton estimates that its domestic 
market share Is only 2-3 per 
cent. During the year It 
acquired Consolidated FPM, 
tbe facilities management 
company and Conroy Hunter, 
toe Scottish property agency. 

Chesterton also formed a 
joint venture with Binswan- 
ger, the US property consul- 
tancy, to handle facilities man- 
agement projects for 
multinational clients. 

Turnover in property man- 
agement rose from £9.8m to 
£lQ.75m; professional advisory 

work, Inrlndlnc ratliu and 
valuntltmn, from X15-SIH to 

*5£° w w “ «p 


Gestetner loses £6.1m 
on interest rate swaps 


By Simon Davies 

Shares in Gestetner, the office 
equipment company, fell 23p to 
I23p yesterday, after it 
announced it bad made a £6.lm 
loss on interest rate swaps, fol- 
lowing the upswing in us and 
UK interests rates this year. 

Mr Stephan King, finance 
director, said the board bad 
been aware of a small potential 
liability when it announced 
interim resalts in July, but 
only recently discovered the 
full extent of its exposure. The 
positions have now been 
closed. 

Gestetner is re-evaluating its 
treasury operations and imp- 
roving controls and reporting 
procedures, while Price Water- 
house is undertaking a full 
investigation of the incident 

No board authorisation was 


required for the highly geared 
transaction which involved a 
floating rate to fixed interest 
rate swap on £20m and $2Qm 
(£l3m), and senior manage- 
ment appears to have been 
slow to react 

One analyst was shocked tbe 
new management had ext- 
ended Gestetner* s reputation 
for being accident prone. Fore- 
casts for full year profits have 
been reduced to about 215m. 

Mr King said that trading 
continued to be in line with 
expectations, adding: "We 
believe we are heading in the 
right direction, and this 1 b just 
a one-off aberration”. 

The group has other treasury 
swap positions, but not of the 
same geared nature. In 1993, 
the company made £4£m of 
profits from dosing interest 
rate swaps. 


Zncbcape, the international 
services and marketing group, 
took a 15 per cent stake in May 
1993, and encouraged a number 
of management changes, and a 
cost cutting programme which 
resulted in £48m of restructur- 
ing costs. It recently lapsed its 
option to increase the holding 
to 25 per cent 

The management was seen 
to have put toe core office and 
photographic equipment distri- 
bution business back on a 
recovery track. 

Incbcape's decision not to 
exercise Its option was based 
on concern over jeopardising 
its relationship with Ricoh, the 
Japanese photocopying com- 


Games Workshop 
scales down float 


By Christopher Price 

Games Workshop, a supplier of 
model war games systems, yes- 
terday became the latest casu- 
alty of investor unease towards 
new issues when its prospectus 
revealed a scaling hack of its 
forthcoming flotation. 

The company had been aim- 
ing to raise £20m through a 
placing and free float 

However, It now Intends to 
raise just £i2m, and only from 
institutions. The reduction was 
blamed on the poor prevailing 
market conditions , rather than 
investor reluctance to support 
such a unique flotation. 

The shares are to be priced 
at U5p, capitalising the com- 
pany at £36m, several million 
pounds below tbe level being 
touted by the board when the 
flotation was first announ- 
ced at the beginning of Septem- 
ber. 

Dealings are due to begin on 
October & 

The placing price represents 
an historic pro forma p/e ratio 


of 11.2 on earnings per share of 
10 .3p for the year ended May 29 
1994. 

The notional gross dividend 
yield is 5 per cent 

The directors are forecasting 
operating profits of not less 
than far the six months 
to November 27 1994, compared 
with £2.Lm and an interim divi- 
dend of 1.5p per share to be 
paid in April 1995. 

Games Workshop was toe 
subject of a £l0m management- 
buy-out three years ago. It 
designs, manufactures and 
markets futuristic war games 
complete with figures and 
rules, which it then controls 
and supplements with develop- 
ments. 

The customers are predomi- 
nantly male, between the ages 
of 10 and 17, who keep up with 
the latest chang es through the 
company’s own magazine. 
White Dwarf, which sells some 
60,000 copies a month. 

Most of tbe UK business is 
done through the group’s net- 
work of 75 shops. 


Inchcape paid about 129p a 
share. The company yesterday 
rei te rat ed Its stance that it was 
happy with the investment 


ED&F Man 1.2 
tunes subscribed 

By Peggy HoOngar 

Investors who applied for 
more 100,000 shares in 
ED&F Man, one of tbe world’s 
largest commodities traders, 
will receive just 55,000 each. 

The public offer of 15.3m 
shares at 180p was L2 times 
subscribed. Some 45.83m 
shares have been placed with 
institutions. 

The shares will begin trad- 
ing on Friday. 

Schraders, the merchant 

Kanlr advising Man, said there 
had been a wide spread of 
smaller applications from pri- 
vate in ves tor s. Those seeking 
19 to 1,000 shares were 
granted their foil application. 

Man announced plans to 
float in August It was forced 
to cat its target price after tiie 
sharp stock market decline. 
Maw said the relatively modest 
oversubscription was not sur- 
prising: 

However, analysts have 
raised concerns about Man’s 
dividend prospects. It Is com- 
ing to tbe market on a 
notional yield of 6 per cent 


Sindall in reverse takeover 


By Simon London, 

Property Correspondent 

Shares in building contractor 
William Sindall were 
suspended yesterday as it 
announced plans to reverse 
into an unlisted building 
company. 

Sindall is paying an initial 
£12.2m for Morgan Lovell, an 
office refurbishment company, 
through the issue of 18.5m 
shares and Elm cash. Addition- 
ally, 4.4m shares are being 
issued through a placing and 
open offer to raise £2.6m. This 
w31 cover the cash consider- 
ation and costs relating to tbe 
takeover. 

The new shares are being 


issued at GOp, against yester- 
day’s closing price of 90p. 

If Morgan Lovell meets 
. fh«wiefo i targets for tola finan- 
cial year, up to a further 
£l.35m will be payable In 
shares, which could leave its 
vendors owning up to 68J5 per 
cent of tbe enlarged company. 

The deal is subject to share- 
holders’ approval at an 
extraordinary general meeting 
on October 26. 

Morgan Lovell was formed in 
1977 and specialises in refur- 
bishing and fitting-out com- 
mercial property. In the year to 
March 31, the company had a 
turnover of £59 An and made 
pretax profits of £l.3m. 

Mr John Morgan, one of its 


founders, will become chief 
executive of the combined com- 
pany, which will be re-named 
Morgan ffh«Wi. 

Sindall also reported an 
interim pre-tax profit of 
£931,000 against a loss of 
£619,000 last time. Turnover 
was down from £24-6m to 
£22Jhn. 

However, the result was 
struck after exceptional 
charges of £4 80,000 to cover 
property write-downs, redun- 
dancy costs and fees paid to 
advisers. This was balanced by 
£L65m exceptional gains aris- 
ing ircan profits on the disposal 
of fixed assets and amounts 
written back to current 
assets. 


Halifax fund management move 


By Afeon Smith 

Halifax Building Society is to 
set up its own fund manage- 
ment operation, as part of the 
strategy that sees it setting 
up its own Ufe company and 
unit trust subsidiaries in Janu- 
ary. 

It has appointed Gartmore 
and Morgan Grenfell Asset 
Management to undertake the 
fund management, along with 
the in-house team which is 
already managing the society’s 
£lbn staff pension fond. 

The society, toe UK’s largest, 
announced last autumn that it 
was ending its "tie” with Stan- 
dard Life. The arrangement 
meant that toe only finanri^l 
services products sold through 
the Halifax branch network 
were those from the mutual 
insurer. 

One of the reasons for the 
Halifax decision to set up its 


own life company was the 
desire to have more say over 
the financial products it sold, 
and yesterday's announcement 
is a Anther indication of its 
intention of controlling the full 
process. 

Gartmore, Morgan Grenfell 
and the Halifax investment 
team will each manage about 
one- third of the funds from the 
Ufe and unit trust subsi diaries. 

Gartmore’ s brief is said to 
have a "growth tilt" while 
Mortgage Grenfell's remit has 
more emphasis on income. 

Mr Mike Blackburn, chief 
executive, yesterday high- 
lighted the important of 
assuming responsibility for 
"the quality of the financial 
solution" suitable for the 
society’s customers' needs" 
and placing tws under the soci- 
ety’s brand. 

It would, he said, provide a 
“spur" to the organisation's 


continuing customer service 
efforts. 

One of the changes that will 
accompany tbe setting up of 
the society's own operations 
will he a move to giving staff 

similar r wtturriBRin ns 3CT0SS toe 

range of financial services poli- 
cies, instead of giving different 
incentives depending on the 
type of investment product 
sold. 

Both Gartmore and Morgan 
Grenfell said Halifax was 
pot entially a very significant 
rftorrt- 

Gartmore has more than 
£2Gtrn group ftmds imdur man- 
agement, while Morgan Gren- 
fell has £30ba funds under 
management. 

Among other large societies, 
the fund management for 
Woolwich Building Society* 
life and unit trust subsic" 
is conducted by Mercury 

Management 


and reconstruction 


By Tim Burt 

Union Square, the property 
investment and development 
group which suffered heavily 
in the commercial property 
slump of toe early 1990s, yes- 
terday announced a rights 
issue and capital reconstruc- 
tion. 

to a statement issued after 
the market closed, the group 
said it hoped to raise £9.6m 
from a l-for-l rights issue at 5p 
per share. The shares closed 

n ncte n gp d a ttto. t* •- — . . . 
Tn« move is designed to 

SS™*** 1 **>* erouD’s x«n*£K» on 
Ttemiwon tt» 


•man of Union Square and man- 
aging director of Thompson 
Investments, said the rights 
issue would increase share- 
holders’ funds to about £10.5m 
and would clear the way for a 
capital reconstruction. 

"Thompson Investments will 
swap their debt for equity, 
leaving It with a 79 per cent 
stake," he added. 

In the year to March 31, the 
property company made pre- 
tax profits Of £212.000 (ESStoQN 
on turnover of TZStaniPpS**'- 

, inghlltin f -■ • 

oil. ■ . - .t - n -rds have 

Thomr^n^Vso a director of 
Queens Hangers football 
club/ ^recast a resumption of 
payments "in a year or two”. 









financial times WPCr CVin - 






»«fc» U 



1 

cover 



COMPANY NEWS: UK 


Off-field activities help 
Man United to double 


By Tim Burt 

Manchester United yesterday 
announced a sharp increase in 
full year profits as the Premier- 
ship champions benefited from 
increasingly lucrative non-foot- 
balling activities. 

The FA Cup holders saw pre- 
tax profits more than double to 
£l0.78m (£4-2m) as the contri- 
bution from gate receipts, its 
staple income, was overtaken 
by off-the-field businesses such 
as merchandising, sponsorship 
and catering. 

Those activities helped lift 
profits before transfer fees 
from £8.19m to £U.45m. on 
turnover ahead 74 per cent at 
£43 -8m (£26 2m) in the year to 
July 31. 

Although the figures were 
flattered by relatively low 
spending on new players and 
capacity constraints last year. 
Mr Martin Edwards, chief exec- 
utive, said the improvement 
had persuaded the club to 
draw up plans to expand Old 
Trafford by more than 22 per 
cent. The club wants to 
increase its stadium capacity 
to about 54,000, enabling it to 
exploit excess demand for 
match tickets. 

While negotiating possible 
land purchases, around the sta- 
dium, Mr Edwards also sig- 
nalled an increasing drive to 
tap merchandise sales, which 
almost trebled from £5m to 
£14£m. 

“Most of the growth has 
come from wholesaling,” he 
added. “We’ve signed an over- 
seas marketing deal in Japan 
for our products and other 
countries are lining up.” 

The balance sheet, mean- 
while, was strengthened by a 
£2. 75m increase in the transfer 



Martin Edwards (left) and Robin Launders: drawing up plans to 
expand Old Trafford stadium capacity by over 22% to 54,000 


fee reserve to £4m, the facility 
which allows the club to set 
aside a proportion of profits to 
cover future player acquisi- 
tions and a possible fall in gate 
receipts should the foam falter 
in league and cup competi- 
tions. 

Earnings per share rose from 
24J3p to Sl.lp before switching 
funds to the transfer reserve, 
and 33. 5p (3i5p) after. The 
final dividend is lifted to I4.5p 
(13J5p) for a total of 21p (l9-5p). 

Mr Robin Launders, finance 
director, also announced a 
4-for-l share split to improve 
the marketability of the shares, 
which rose 9p to 694p. 

• COMMENT 

The Reds appear to have 
scored a hat-trick with on-field 


goals, retail sales and r ampant 
ticket demand. Increased spon- 
sorship and a possible £7m 
windfall from the European 
Cup makes the prospects look 
rosey. But the figures are 
untypical They have been dis- 
torted by smaller crowds in 
1993, a year when the club 
spent £4m on players. To 
ensure success in Europe, the 
club will have to spend more 
on English players - denting 
future profits. Payments to 
such players last year pushed 
staff costs up to £ll.lm 
(£7. 59m). a figure likely to 
increase. Profits this year, 
therefore, could foil to around 
£7.5m- On a forward multiple 
of 16.2, the shares are a must 
only for long-term investors 
and diehard fans. 


Fortnum & Mason up 15% 


Fortnum & Mason, the 
department store company 89.8 
per cent owned by Wittington 
Investments, reported that the 
improvement seen in the first 
six months continued in the 
second half of the year to July 
9 resulting in record pre-tax 
profits of £131m. 

That was a 15 per cent 
increase on the previous 
EJ.OUn. Turnover was up 12 per 
cent from £24.7m to £27.6m 


with exports up by 49 per cent 

Mr Garry Weston, r.hairman. 
said that present trading had 
been .afFected by the rail 
strikes and the hot weather in 
the first few weeks of this year 
but exports continued to be 
buoyant 

Earnings per share were 388p 
(31lp) and the second interim 
dividend is raised to 24p mak- 
ing a total for the year of HOp 
(100p). 


£3m plant hire 
purchase by Allen 

Allen, the engineering, 
building and property group, is 
expanding its plant hire activi- 
ties with the £3m acquisition of 
Kendrick Hire, the UK’s largest 
privately owned tool hire com- 
pany. 

The consideration will be 
satisfied by the issue of L35m 
shares and £600,000 cash. 

Kendrick reported pre-tax 
profits of £105,000 on turnover 
of £7.1m for the March 31. 


NMB sold 
to Bank of 
England 
for nominal 
amount 

By Anson Smith 

The short and unhappy life of 
National Mortgage Bank as a 
subsidiary or National Home 
Loans sided yesterday when 
its parent announced that it 
was being sold to the Bank of 
England for a nominal sum. 

In February 1992, NHL said 
it had decided to run down the 
business and would wak«» no 
further investment In it Mr 
Ian Hay Davison was installed 
as chairman to manage the 
winding down of the bank. 

Mr Jonathan Perry, NHL 
executive chairman, said NHL 
had already written off all its 
investment in NMB and the 
announcement merely trans- 
ferred the ownership. 

NMB was set up m 1989 and 
dealt in commercial mort- 
gages, leasing and second 
mortgage loans. It also offered 
current account banking facili- 
ties and had a foil hank ing 
licence. 

By 1991, however, it was suf- 
fering in the aftermath of the 
collapse of the Bank of Credit 
and Commerce International, 
as local authorities began pull- 
ing deposits out of smaller 
banks. NMB’s accounts show 
that institutions other than 
banks - mostly local councils 
- withdrew deposits totalling 
£292m in 1991, more than half 
its total deposits. 

The withdrawals led to a 
group of 10 banks agreeing to 
pnt up a £200m cash lifeboat 
for NHL, supported by an 
indemnity from the Bank of 
England. The arrangement 
was extended and increased in 
March 1992. 

The Bank of England's 
annual reports show that pro- 
visions for support operations 
in 1991-92, mainly in respect 
of NMB, totalled £115m at end- 
February 1993, falling to 
£105m at the end of February 
this year. The announcement 
merely changes the form 
rather than the substance of 
the Bank’s support 
NHL’s core business is pro- 
viding mortgages for residen- 
tial property. It returned to 
new lending only four months 
ago through its Homeloans 
Direct subsidiary. 


BFI bid impossible to rubbish 

Attwoods still insists the price is too low, says Peggy Hollinger 


E ven Mr Ken Foreman, 
chief executive of 
Attwoods, cannot fault 
i the logic that has prompted a 
hostile £364m bid for his waste 
services company. 

Attwoods makes a sound fit 
with Browning-Ferris Indus- 
tries, the US company valued 
at $6bn which is offering lG9p a 
share in cash. “You cannot 
argue with it from their point 
of view," Mr Foreman says. 
“But you can point out it is 
worth a lot more than they are 
paying." 

BFI disagrees, of course. It 
says it has factored in the ben- 
efits of synergies in the US and 
a premium to what it believes 
is the true trading leveL 
BFI bases its offer on two 
main arguments: price and 
industry dynamics. On the first 
issue, it is convinced that 
Attwoods has been inflated by 
bid speculation following man- 
agement changes at LaidLaw of 
Canada, Us largest shareholder 
with 29.8 per cent of the ordi- 
nary shares and 73 per cent of 
the preference stock. 

BFI also argues that the 
shares have been kept artifi- 
cially high- by a belief that 
Laidlaw would not take a fur- 
ther writedown on its stake. In 
1991, Laidlaw halved the carry- 
ing value of its original $900m 
investment to $10.25 per Ameri- 
can Depositary Receipt - equiv- 
alent to five ordinary shares. 
Yet Laidlaw has agreed to sell 
its ordinary shares to BFI at 
$8.50 per ADR, and its prefe at 
85p, even if a second bidder 
enters with a higher offer. 

Attwoods’ shares did rise 
sharply in the months after the 
arrival of Mr Jim Bullock as 
Laidlaw's chief executive. How- 
ever, at about the same time, 
the group announced the sale 
of its loss-making recycling 
business. Mindis, and institu- 


tional investors began buying 
In earnest But the gains were 
wiped out by March soon after 
the Attwoods board met to con- 
sider second-quarter results 
that would show disappointing 
performance in Germany. 

Attwoods argues that, con- 
trary to BFTs claims, Laidlaw's 
intentions to sell depressed the 
shares when 1995 recovery 
potential should have 

an ha n e ed them. 

The fact that Laidlaw agreed 
to take lG9p, the closing price 
the day before the offer, simply 
reflects the pressures on one 
shareholder, Attwoods argues. 
This has no relevance to what 
Others Should be d emanding of 
their investment Outsiders are 
divided over whom to believe. 
Most UK analysts think the 
offer is opportunistic. Industry 
insiders and US analysts, how- 
ever, tend to agree with BFI's 
assessment of an inflated share 
price. "Absolutely. There is no 
doubt that they were buoyed 
by bid speculation,” said one 
waste executive. 

B FI's second, and more 
convincing, argument is 
based on industry 
dynamics, largely in the US. It 
claims Attwoods could be 
severely handicapped in an 
industry demanding higher 
levels of investment and more 
sophisticated solutions to 
waste disposal. 

“The market in the US is 
responding to public concerns 
about the environment,” BFI 
says. “They want their waste 
manag ed in different ways.” 

To return real earnings 
growth in the US, where 
Attwoods earns more than 
three-quarters of its profits, 
BFI argues companies must do 
everything from collecting to 
disposing of waste, or recycling 
it for eventual resale. Yet 



Ken Foreman of Attwoods 
can’t fault BFTs logic 


Attwoods has limited itself 
largely to collection in the us, 
which is lower margin. 

Regulation is also forcing 
companies to adopt an increas- 
ingly integrated approach. In 
California, for example, legisla- 
tion demands that 50 per cent 
of waste which is collected 
must be recycled. 

Yet Attwoods last year sold 
its only recycling business at a 
huge £91m loss, just before the 
prices of recycled materials 
began to firm. 

BFI says Attwoods' strategy 
bas left it depending on rivals 
to dispose of waste. That was 
fine when landfill prices were 
foiling, but now they too have 
begun to stabilise, says BFI. 

Furthermore, the increas- 
ingly competitive nature of 
municipal contracts, on which 
Attwoods relies heavily In both 
its US markets, mean it will 
face price pressure in its every- 
day business. 


Many of BFI's arguments 
about trends in the US waste 
industry are supported by ana- 
lysts and rivals. Mr Hugh Hol- 
man of Alex Brown, a leading 
US waste analyst, says “integ- 
rating collection and disposal 
operations provides the best 
opportunity for stable mar- 
gins'*. WMX Technologies, the 
world's biggest waste group, 
has also been pursuing a policy 
of integrated services. 

Yet BFI has, remarkably, not 
broadcast a more immediate 
bonus from the acquisition of 
Attwoods. The target’s busi- 
ness would give a nice boost to 
BFI's own solid waste collec- 
tion operation, expected to 
return flat profits this year. 

While acknowledging that a 
takeover makes sense strategi- 
cally, Attwoods dismisses as 
rubbish BFI's claims that it 
would create an integrated 
company in its largest market. 
Florida. BFI does not own land- 
fills there, while Attwoods has 
three. Yet BFI does have 
recycling operations there. 

Attwoods also dismisses 
BFTs attacks on its recent per- 
formance as unjustified. All 
waste companies have suffered 
earnings declines and write- 
offs, Mr Foreman c laims . BFI 
itself, he says, has had excep- 
tional charges of $793m in the 
last five years and its credit 
rating is under review. 

Finally, Attwoods will also 
give BFI a significant boost in 
the recovering UK market, 
where it has both collection 
and lan dfill interests. 

All this means that any offer, 
hostile or otherwise, deserves a 
premium, Attwoods says. 
Which brings investors neatly 
back to the issue of price. As 
Mr Foreman has admitted, 
Attwoods will be hard-pressed 
to discredit BFI's strategic 
arguments. 


Inspec pays $17.3m for US foam maker 


By Tim Burt 

Inspec Group, the speciality 
chemicals company which 
came to the market earlier this 
year, yesterday announced 
plans to expand in North 
America with the S17.3m 
(£llm) acquisition of Imitech, 
the US foam manufacturer. 

The deal, the first since 


Lnspec's £49.5m flotation in 
March, will be funded from 
cash reserves and new borrow- 
ing facilities totalling 517.5m. 

“It will increase turnover by 
about 14 per cent and boost the 
level of earnings,” said Mr Jim 
Ratdiffe, managing director. 

Although the acquisition will 
push gearing beyond 100 per 
cent on net borrowings of 


£18m, Mr Ratcliffe said strong 
cash generation would ensure 
interest cover of at least 12 
times. 

Imitech, a subsidiary of Albe- 
marle, the US chemicals busi- 
ness, claims to be the only 
global producer of polyimide 
foam, used mostly in insulat- 
ing naval vessels and aircraft 
fuselages. 


In the 12 months to last 
December it made pre-excep- 
tional operating profits of 
$2.7m on sales of $15fhn. 

The deal follows five months 
of talks with Albemarle - the 
former speciality chemicals 
arm of Ethyl - which first 
came to lnspec's attention as a 
supplier to ADco, its US speci- 
ality acids business. 


INTERNATIONAL COMPANIES AND FINANCE 


it* ii* 



Swiss Re sells non-core businesses 


OVERVIEW OF SWISS RE GROUP RESULTS 1903 SFr million 


Reinsurance 

companies 

Insurance 

companies 

Total* 

% change 
against 1992 

Gross premiums 

12.277 

11,472 

23,749 

a3 

Non-Ufa insurance 

9,998 

; 9.287 

19,285 

63 

Life Insurance 

2^79 

2,185 

4.464 

15.4 

Underwriting results 

-298 

-592 

-890 

-9.8 

Non-Ufa Insurance 

-393 

-641 

-1 .034 

-7.4 

Life Insurance 

95 

49 

144 

103 

Investment and other financial income 

1,301 

674 

2,101 

1 3 

Other Income and outgo, taxes 

-504 

-371 

-813 

9.1 

Profit applicable to minority shareholders 


-71 

-73 

49.0 

Consolidated profit 

499 

-360 

325 

15.7 

Induing taking and odor ctmpanaa 


By Ian Rodger in Zurich 
and Christopher Parices 
in Frankfurt 

Swiss Reinsurance, the world’s 
second largest reinsurer after 
Munich Reinsurance, is selling 
all its interests in primary 
insurance companies to con- 
centrate on expanding its core 
business. 

In the most important trans- 
action, Allianz of Germany, 
Europe’s largest insurer, has 
agreed to pay SFrl.5bn for 
Swiss Re’s 60 per cent stake in 
Elvia, Switzerland’s fifth larg- 
est insurance company with 
annual premium volume of 
SFr2.6bn ($2bn). It will also 
make an offer to public share- 
holders for the balance at 
SFr3,915 per share. The 
planned purchases will 
increase the Allianz group’s 
premium income - DM65 .5bn 
(il3.6m) last year - by almost 
20 per cent 

This marks the first big 
advance of a non-Swiss com- 
pany into the lucrative and 
recently-liberalised Swiss 
insurance market 

Allianz bas also agreed to 
buy Vereinte/Magdeburger of 


Munich from Swiss Re, which 
would substantially strengthen 
its already solid position in the 
German market 

It is also purchasing Swiss 
Re’s 62.7 per cent stake in 
Lloyd Adriatico of Trieste for 
SFrfiOOm, and making an offer 
to minority shareholders at 
L20.S42 per ordinary share and 
L14.335 per savings share. 

Meanwhile, Switzerland’s 
Winterthur Insurance will take 
over the troubled Schweiz 
Seguros of Barcelona and 
Schweiz Italia of Milan, as well 
as Swiss Re’s majority stake in 
La Equitativa of Madrid. 
Terms were not disclosed. 


Swiss Re also published its 
1993 financial results yester- 
day, showing a 15.7 per cent 
rise in net income to SFr32Sm 
on gross premium income of 
SFr23.7bn, up 8.3 per cent The 
directors are proposing a 9.4 
per cent dividend rise to 
SFrlO.50 per share. 

The profit gain was achieved 
in spite of SFz360m in losses on 
its primary insurance busi- 
nesses, mainly due to a “mis- 
guided business policy” at 
Schweiz Seguros. Swiss Re has 
provided SFr48Qm to put Segu- 
ros in order before Wlntehhur 
takes it over. o 

Mr Lukas Mfihlemann, who 


joined Swiss Re as chief execu- 
tive a month ago, said a strate- 
gic review by the group had 
concluded that the primary 
insurance market would polar 
ise around big companies and 
niche players as deregulation 
in Europe proceeded. 

Swiss Re's companies fitted 
into neither of these catego- 
ries, “so we were not good 
owners for them”, Mr MQhle- 
mann, former managing direc- 
tor of McKinsey & Co in Swit- 
zerland, said. On the other 
hand, there was a “great 
future” in the reinsurance 
business, in which Swiss Re 
was well-placed globally. 


US retailer 
emerges from 
Chapter 11 

By Tony Jackson in New York 


{porting Goods, the 
US sporting goods 
ias emerged from 
l bankruptcy and 
vpand. Herman's is 
an investor group 
Mew York merchant 
litraan Heffernan 
Carl Marks, 
p bought Herman's 
993 and put it into 
three days later, 
s was originally 
- the UK’s Dee Carp 
way) in 19S6 for 
i.im), and promptly 
loss as a result of 
xpansion. Gateway 
over in 1989 in H* 
est buy-out, and 
me made to sell 
The eventual sale 
believed to have 
S-lOm. 

owners have used 
y protection to 
nan's to its strong- 
; north-east states, 
,torcs west of Penn- 
d south of Virginia. 


BK Vision upbeat on UBS move 


By Ian Rodger 

BK Vision, the investment 
company seeking shareholder 
support to alter the direction of 
Union Bank of Switzerland, 
said yesterday it was optimis- 
tic that a majority of UBS 
shareholders would reject the 
bank's proposal to abolish its 
registered shares. 

This class of shares has five 
times the voting power of the 
bank’s bearer shares. UBS on 
Thursday said it suspected BK 
Vision, controlled by Mr Mar- 
tin Ebner’s BZ banking group, 
was putting together a concert 
party to seize control of the 
bank, mainly through pur- 


chases of the registered shares. 

The registered shares, on 
which voting rights are 
restricted to Swiss citizens, 
have been trading at a substan- 
tial premium to the bearers in 
recent months. 

UBS has called an extraordi- 
nary general meeting on 
November 22 to approve a split 
of bearer and registered shares 
into bearers of equal par value. 
No compensation, would be 
offered to registered sharehold- 
ers for the loss of preferential 
voting power or the premium 
value on their shares. 

BK Vision, which holds 19 
per cent of the registered 
shares, worth some $FrL2bn 


($938m), said the UBS move 
bad already damaged the repu- 
tation of the Swiss financial 
market as a place which pro- 
tected property rights. How- 
ever, it did not indicate what 
action it might te k e 
UBS shares w fere the most 
actively traded issues in Zurich 
yesterday, and the trend 
suggested investors believed 
BK Vision would succeed in 
convincing a majority of regis- 
tered shareholders to vote 
against the UBS proposals. The 
bearer shares ended down SFr5 
at SFrl^OO after a high of 
SFrl.246. The registered were 
down SFr21 to SFT303 after a 
high of SFrSlO. 


Bank chief calls for supervision rethink 


Mr JosS P6rez, director-general 
for banking supervision at the 
Bank of Spain, says banks are 
bearing a heavier burden of 
regulation than ideally 
required to minimise costs to 
the financial system, John 
Gapper writes from Madrid. 

He told an FT conference mi 
international banking in Mad- 


rid that initiatives such as the 
Basle Committee’s proposals to 
allow banks to use internal 
risk models to allocate capital 
for trading could lessen the 
burden by changing the “style 
and quality” of supervision. 

He suggested costs could 
also be reduced by managers 
and supervisors jointly design- 


ing databases for each bank. 
This would allow both groups 
to obtain relevant information 
immediately and at lower cost 
Mr P6rez said the multiplica- 
tion of capital requirements 
meant that supervisors were 
“at risk of applying rules that 
are as complex as they are 
lacking inaccuracy”. 


Headquarters sale winds up 
Metallgesellschaft disposals 


Lufthansa 
and Thai 
Airways in 
link talks 

By Christopher Parkas 

Lufthansa is negotiating a 
co-operation agreement with 
Thai Airways with the aim of 
fashioning a network span- 
ning the world, according to 
Mr Jttrgen Weber, chairman. 

The German flag-carrier, 
which earlier this week 
offered 5m shares at DM182 
($118.10) each in a heavily 
oversubscribed combined 
rights issue and placing opera- 
tion, said it expected talks to 
be completed before the end of 
November. 

A deal with the Thai flag- 
carrier would provide a crucial 
link In Lufthansa’s fast- 
growing list of partnerships 
built around an agreement 
with United Airlines of the US, 
which already co-operates 
with Thai. 

Mr Weber said the arrange- 
ment with United was exceed- 
ing expectations. During July 
and August its transatlantic 
flights had been filled almost 
every day. 

Meanwhile, Dresdner Bank, 
which led a hook-building 
exercise for this week's capi- 
tal-raising, said 3.9m shares 
offered in the rights issue had 
been widely distributed among 
private international inves- 
tors. 

A further 1.1m from the fed- 
eral government’s holding had 
been placed. 

Heavy demand Had enabled 
the offering to be priced at 
only a small discount - DM2 - 
to Thursday's Frankfurt stock 
market closing price of 
DM184, it said. 

The issue and placing 
marked a decisive change in 
Lufthansa’s status. The sale of 
government stock and Bonn's 
non-participation in the 
rights issue mean the govern- 
ment no longer holds a 
majority. 

It plans to reduce its stake 
further in the next year or 
two, although it is not yet 
clear if it will dispose of its 
entire holding. 

This week's exercise, involv- 
ing the first large-scale book- 
building effort in Germany - 
in which potential investors 
were canvassed in advance - 
Is widely seen as a rehearsal 
for further privatisations 
planned in Bonn, 


By Christopher Parices 

Metallgesellschaft yesterday 
completed its assets fire sale 
with the disposal for an esti- 
mated DM500m ($324.7 m) of its 
Frankfurt headquarters to 
Difa, a Hamburg-based prop- 
erty investment fund. 

Final legal de ta i l s were ham- 
mered out yesterday, the last 
day of the current financial 
year, allowing the consider- 
ation to be included in the 
1993-94 accounts. 

Metallgesellschaft will lease 
back the building, on a prime 
25,000 sq metre site next to .the 
Alte Oper opera house and 


By Robert Graham in Rome 

Heavily-indebted Fininvest, the 
media, stores and financial ser- 
vices group owned by Italian 
premier Mr Silvio Berlusconi, 
expects to reduce the debt bur- 
den by one third, to L2,800bn 
($L8bn), by the year end. 

This was the group's forecast 
yesterday as it released its 1993 
accounts. Last year. Fininvest 
debts totalled L3,920bn on a 
turnover of Lll,552bn, up 10 
per cent from L10,469bn in 
1992. The forecast drop in net 
indebtedness comes from the 
anticipated L990bn in proceeds 
from the 53 per cent flotation 
of Mondadori, the group's pub- 
lishing arm. 

Since January, Mr Berlus- 


By Andrew HHJ in Milan 

Shares in Benetton, the 
Italian-based clothing group, 
foil sharply yesterday after it 
announced a rise in net profit 
to LlOO^bn ($64.7m) in the first 
half of 1984, from L88.6bn in 
the equivalent 1993 period. 

Operating profit, however, 
fell by 8^ per cent to L193bu 
from L2libn, as the company 
persisted with the price-cutting 
policy introduced two years 
ago to combat the interna- 
tional slump in consumer 
demand. 


between the banking quarter 
and fashionable West End 
area, for three years. 

Unofficial estimates had ear- 
lier suggested It might earn 
about DM700m from the sale. 
Although the price was not dis- 
closed, officials said DM500m 
was "plausible". It is under- 
stood Deutsche Bank, one of 
the group's main shareholders 
and its leading creditor, was 
also interested in buying the 
site, which is rated as one of 
the most desirable in Ger- 
many’s financial capital. 

Difa, which is closely associ- 
ated with DG Bank, is ranked 
among the top five open-ended 


coni has had no direct manage- 
rial role. The nhairmanshi p has 
been entrusted to his close 
friend Mr Fidele Confalonieri, 
while executive management is 
in the hands of Mr Franco 
Tato. 

Net profits were Lll.Sbn, 
down from L2l.lbn and mar- 
ginally lower than originally 
anticipated. However, the 1992 
figures were boosted by large 
extraordinary revenues, while 
last year's asset disposals - 
notably the 24 per cent divest- 
ment of Fininvest Italia (insur- 
ance) to Ennio Doris, which 
raised L240bu - also helped the 
bottom line. 

During the year, debt 
restructuring helped cut finan- 
cial charges from L556bn to 


Investors were disappointed 
with the performance, and 
marked the shares down by 4.7 
per cent, to L20.927, in a 
depressed Milan stock market. 

Benetton said it expected the 
full-year increase in net profit 
to be “slightly higher" than the 
L9 per cent first-half improve- 
ment In 1993, Benetton's con- 
solidated profits rose 12.6 per 
cent to L2Q8bn, 

The continuation of the 
price-reduction policy in the 
first half - with cuts ranging 
from 6 per cent in Italy to 28 
per cent in Japan - allowed 


property funds in Germany, 
with total assets of around 
DM7.5bti- It was advised in the 
Metallgesellschaft deal by 
Jones Lang Wootton. 

The announcement of the 
disposal followed a confident 
statement from Mr Kajo Neu- 
kirchen, chairman, who said 
the group’s liquidity situation 
had never been better. 

In a letter to staff, he said 
the disposals programme 
started early this year as one 
of the conditions of a DM3.4bn 
rescue package assembled by 
creditor banks and share- 
holders was by and large com- 
plete. 


L386bn. The operating result 
was up 12 per cent to L557bn, 
in part due to new accounting 
methods to cover the deprecia- 
tion of television rights. It is 
understood that reservations 
about contingent liabilities, 
raised by accountants Arthur 
Andersen on the 1992 accounts, 
have been addressed. However, 
the 1993 accounts have appar- 
ently raised queries concerning 
a L330bn credit affecting for- 
eign television rights. 

Pre-tax profits rose to 
L209.3bn, compared with 
L739bn in 1992. The heavily- 
increased tax bOI was blamed 
on strong profits in the pub- 
lishing and financial products 
divisions, plus reduced tax 
credits. 


Benetton 

Share price (lira ’000) 


30 - 



Souck FT Graphite 


Benetton to pursue its increase 
in sales volume. Total turnover 
rose slightly to L1.3S7bn from 
LL,362bn. 


Fininvest forecasts debt cut 


Benetton disappoints 
with small profits rise 



ing data lor uie monitoring oi targets, ana dm iur me iiuuuiiug ui wmb imhihv- 



10 


FINANCIAL TIMES WEEKEND OCTOBER 1/OCTOBER 2 1994 

COMMODITIES AND BONO PRICES 


WEEK IN THE MARKETS 

Copper’s 
advance 
boils over 

London Metal Exchange 
traders watched anxiously yes- 
terday morning as the three 
months delivery copper price 
dipped below the $ 2 jS 00 -a-tonne 
mark. 

The price reached a 3%-year 
high of $2£78 on Wednesday 
hot the mood of the market 
changed the following day with 
the expiry of the September 
position at the New York Com- 
modity Exchange. Tightness in 
that contract had been under- 
pinning LME copper prices, 
dealers explained. 

Stop-loss selling orders were 
triggered on Thursday as the 
three months price fell through 
support at $2,550 and a 
short-term trend line at $2£40. 
Further important chart levels 
were breached yesterday morn- 
ing, traders told the Reuters 


UN WARMHOUSM STOCKS 

(As « Ttuactay's does) 
tonnea 


A/uminkan 

-12550 

fa 2^14,100 

Alundniuni aloy 

+120 

»23^«] 

Copper 

-4260 

to 380400 

Lead 

+1.100 

10 371,776 

rockoi 

+182 

to 144,432 

Zinc 

-1,260 

U1233JSS0 

Tin 

+45 

to 32^30 


news agency, with continued 
stop-loss selling accelerating 
the decline. 

The worrying thing about 
copper is that the market can 
go down to $2,150-2,200 and still 
be above the major uptrend 
line, 1 * one dealer said. More- 
over. the copper market's 
upside potential is limited as 
its recent support around 
&520 should now offer resis- 
tance. 

Yesterday’s early fall was 
halted at $2,495 a tonne by the 
appearance of scale-down buy- 
ing and some bargain-hunting. 
But by the close of the after- 
noon ring late selling had 
taken the three months con- 
tract to $2,490.50 a tonne, down 
$40.25 on the day and $80 on 
the week. 

The announcement first 
thing yesterday erf a L16 per 
cent Ml in LME warehouse 


stocks of copper did little to 
relieve the market's gloom; but 
a 0.66 per cent fall in alumin- 
ium stocks was enough to 
underpin a rally in that metal’s 
prices. After an early dip to 
$1,601 a tonne the three 
months position rose to $1,624 
before closing at $L617 a tonne, 
down $2 on the day and $14 on 
the week. 

Dealers said that the recov- 
ery was fuelled by speculative 
buying and short-covering and 
suggested that the strength of 
chart-inspired support around 
$1,600 boded well for an early 
attempt an the contract's over- 
head objective of $1,650 a 
tonne. 

The gold market ended lower 
on the week after briefly rising 
to $400 a troy ounce in 
response to a report, later 
denied, that. Russia planned to 
halt exports of the metaL 

At the London bullion mar- 
ket the price ended $2L20 down 
overall at $393.80 an ounce, but 
traders said it had done 
enough to foster hopes of a 
renewed advance next week. 

"Gold’s uptrend remains 
intact down as far as $388- 
$389," one dealer pointed out, 
though he added that a retrace- 
ment to that level would long 
delay a fresh assault on $400. 

The outlook for coffee prices 
appears less promising. In spite 
of the continuing dryness in 
Brazilian growing regions tha 
November futures price at the 
London Commodity Exchange 
toll by $187 this week to $3830 
a tonne. 

“It's looking fairly weak. 
Nobody is in the mood to buy, 
the roasters have backed off 
and we’re just drifting." said 
one trader as the price 
extended its decline yesterday. 
But others noted that concern 
about the Brazilian weather 
situation was ensuring that 
selling pressure remained 

fair ly li g ht, pnahling the price 

to finish $40 above the day’s 
tow. 

Reuters reported that the lat- 
est forecast indicated contin- 
ued dry, warm weather over 
the weekend in most Brazilian 
coffee growing areas, though a 
few scattered storms were pos- 
sible. 

Richard Mooney 


WEEKLY PRICE CHANGES 


Latest Chang* Yaar 1994 — 

prices on week sgo Hgh Low 


Gold per troy or. 

$39220 

-230 

$356.20 

S396J0 

$368^0 

SOver per troy or 

355.60p 

-&55 

Z70.00P 

384J50p 

331.50P 

AfamMura 99.7% (ceafi) 

S15SZ5 

-16 

SI 088 

$1582,5 

$1107.50 

Copper Grade A (cash) 

$2477.0 

-79 

$1679.5 

$2521.00 

$1731^0 

Load (cash) 

$6206 

-1 

$361^ 

S621J 

S426J) 

Nickel (cash) 

$6386 

-86 

$4062^ 

$8490 

$5210.0 

Zinc SHG (cash) 

$1006.5 

-165 

$879 

$1023 

$9005 

Tin (cash) 

$5315 

-85 

$4385 

$S66CLO 

$4730.0 

Cocoa Futures Mar 

£1018 

-18 

£969 

£1124 

£858 

Coffee Futures Jan 

$3855 

-163 

$1172 

$4091 

$1173 

Sugar (LDP Raw) 

$313.6 

+2.5 

$259-9 

$316.4 

$2529 

Barley Futures Jan 

£106.66 

-1.75 

£104.86 

E105J0 

£92.86 

Whom Futures Jan 

£107.00 

+ai5 

£102.60 

£117.50 

£97 £0 

Cotton Oitiook A Indax 

73^0c 

-0.70 

55.40c 

87.10C 

62.45c 

Wool [S4a Super) 

453p 

-22 

323p 

485p 

342p 

Of (Brant Bkmd) 

*1 6.65jc 


S17J5 

$18.61 

$13.16 


Ptf tom intact othflfYvts* Bated, p Pmou/kQ. c Cana to. x Nov 


BASE METALS 

LONDON METAL EXCHANGE 

(Prices (ram Amalgamated Mata] Tradngj) 

■ ALUMINIUM. 99J PURITY (S per tonne) 


Cash 

dose 1692-3 

Previous 1595-0 

HJflh/tow 1697/1364 

AM OfBdef 16S7JS-05 

Karti dare 

Opan fat 252,067 

Total daily tunovor 43/424 

■ ALUMINIUM MJLOY (S per tonne) 

3 raths 

1917-8 

1619-20 

1824/1606 

1821-2 

1617-8 

Cfaaa 

1635-45 

1655-60 

Prawkxre 

1845-65 

1660-70 

FSgh/low 


1667471655 

AM Official 

1846-66 

1665-70 

Kerb dose 


1645-55 

Opan fat 

3,069 


Total daly twnovar 

577 


m LEAD ft par tonne) 


Close 

620-1 

634-6 

Previous 

624-5 

638-9 

High/low 

624 

843/833 

AM Official 

624-5 

638-84 

Kerb cfaaa 


634-6 

Open fat 

41407 


Total daly turnover 

4/429 


■ NICKH. (S per tome) 


Close 

6380-70 

8480-70 

Previous 

6415-25 

6616-26 

KgMow 

8426/8410 

8520/6440 

AM Official 

6410-5 

6520-6 

Kerb dose 


044O-SO 

Open fat 

71481 


Total dafly turnover 
■ TM (S per tarme) 

9411 


Cfaaa 

6310-20 

6390-400 

Previous 

6310-16 

6390-5 

hOgh/low 


5425/5370 

AM Official 

5322-6 

5404-5 

Kerb doss 


5420-30 

Opan fat 

16/468 


Total deHy turnover 

2408 


■ ZWC, apadal high grade (S per tonne) 

Ctaea 

1006-7 

1029-30 

Previous 

10074-84 

1030-1 

HghAow 


1033/1028 

AM Oflldal 

1006-7 

10294-30 

Kerb close 


1030-1 

Open fat 

98407 


Total daSy turnover 

12,751 


■ COPPEH, grade A (S per tonne) 


Cfasa 

24784-774 

2490-1 

Previous 

2518-9 

25304-14 

MgMow 

2486 

254Q/2475 

AM Offldre 

24854-64 

2500-01 

Kerb cfasa 


2481-2 

Open fat 

218,732 


Total daly turnover 

89401 



■ LME AM Official VS rata: 1.5800 

LME Ctaafag US rata: 1-8770 

Spot 1.5770 3 rntfacl-STSB 6mttrfX728 8 00*1.5876 

■ WQH GRAPE COPPER (COMSQ 




Oayb 

Open 



Ores 

change |fl^ loaf 

tt 

Vo( 

Ott 

113.40 

-420 11545 113.10 

1420 

397 

Nov 

112.65 

-375 115.70 11440 

754 

9 

DSC 

11253 

-340 11535 11240 

<2414 

512 

JU 

11273 

-345 113.40 1 13.10 

614 

2 

Ml 

11143 

-140 113-20 11X00 

480 

10 

Uv 

111.65 

-3J0 114.50 11140 

5,651 

381 

Total 



36,181 

1,743 

PRECIOUS METALS 



■ LONDON BULLION MARKET 
(Prices suppOed by N M RothocMd) 




GcM (Trayoz.) 

S price 

£ equiv. 

Cfaaa 

383.60-394.00 


Opening 

395.00-395^40 


Morning fix 

39545 - 

250.158 

Afternoon flx 

39444 

249473 

Day’s «gh 

39640-306.90 


Da/S Low 

39340-393.60 


Previous doae 

39645-395.75 



Loco Lcfri Moan-Gold Landtag Rate* (Vs US$) 

1 month a w 6 months 4.88 


Precious Metals continued 

■ GOLD COMEX (100 Tray ozjStegy oc.) 


Son Daft 


0JM 


Ott 

pria 

3944 

•1J0 

n* 

3954 

low lot 
mi 3417 

VOL 

2401 

(tar 

prtea 

10440 

Nov 

3834 

-1-1 

- 


- 

J WB 

107.00 

Dac 

3974 

-1.1 

3987 

3964111472 21487 

Star 

10946 

Ml 

4004 

•1-1 

4024 

3994 19498 

17* 

' Mar 

1103 

Mr 

4044 

-1.1 

4054 

40*4 7413 

514 

Jtt 

11345 


4074 

-1.1 

4074 

4084 10482 

11 

DM 



TS7,1» 28,1*9 

PUCTWUM NYMEX (BO Tray Q=J Snpf QZ.) 


Ott 

418.4 

-1.1 

4194 

4154 2.UB 

2429 

Jsa 

4224 

-1.1 

4244 

4184 17458 

2217 

Apr 

425.7 

-14 

4284 

4244 2605 

02 

Jtt 

4284 

-14 

4294 

4294 474 

8 

Ott 

4314 

-14 

- 

- 335 

- 

Total 




22711 

5344 

■ PALLADIUM NYMEX (100 Troy OK; Sffroy ot) 

Dae 

152.70 

-I\9f1 

15330 

15240 4316 

648 

tar 

15170 

- 

15440 

15140 1407 

96 

bn 

15440 

- 

- 

- 152 


Tote 




6475 

746 

■ 3JLVB1 COMEX (100 Doyozj Centaftrgy at) 

act 

5604 

-24 

. 

5 

7 

Hav 

5634 

-24 

- 

- 63411 

17352 

Dac 

5657 

-24 

5664 

5614 43 

4 

J m 

5083 

-24 


- 103*1 

458 

Iter 

5744 

•24 

5774 

5704 4440 

33 

•fay 

5804 

-24 

gain 

5794 2706 

6 

TOW 



13 

121493 17772 

ENERGY 





■ CRUDE OB. NYMEX (42400 US gtafa-S/barreO 


Latest 

Days 


Qpao 



price 

direas 

H* 

Low U 

Vol 

Rov 

10.13 

+0.15 

1625 

1743 88314 45431 

Doc 

1841 

+0.15 

1632 

1643 72.150 

23423 

Jan 

1848 

+0.13 

1847 

1615 46464 

9.10* 

Ml 

1846 

+046 

1847 

1826 23A83 

3.101 

Mar 

1840 

+647 

1636 

10S 19315 

2478 

Apr 

1843 

+0.10 

1640 

1625 14.729 

2721 

Tata 




401365 98,751 

■ CRUDE OIL PE (S/barreQ 




latest 

Daft 


Open 



price 

ebasgs 

HW* 

law tat 

VOI 

Ibr 

1645 

+041 

1743 

1685 68747 31402 

Dec 

1638 

+020 

1745 

1688 48310 

14373 

Jan 

1742 

+041 

1748 

1643 15,445 

332* 

Mi 

1637 

+0.15 

1743 

1642 7,447 

1364 

He 

1648 

+ai5 

1743 

1640 8,138 

684 

Apr 

1645 

+0.11 

1648 

1638 1,787 

245 

Tata 




155313 51350 

■ HEATMQ t»- (ttWX (42400 US gtai; cflJS gals.) 


Latest 

Days 


Opan 



ttka 

rings 

M* 

Low tat 

tax 

Ott 

4840 

+048 

50-10 

49.15 8360 11,759 

Mss 

■fa Iff 

+047 

5140 

50.00 aaww 

18.168 

Dec 

5170 

+047 

5200 

61 2S 43380 

7372 

Jta 

«rasn 

+047 

5240 

5220 30,778 

2371 

Fek 

5248 

+047 

53-50 

5275 18,115 

1,150 

Mw 

5240 

+0.32 

5340 

5275 12422 

1310 

Tote 




18Q352 44,780 

■ QAS OS. PE (Stoma) 




Sett 

Daft 


OPtei 



price 

cfHBge 

HW» 

Low tat 

Vcf 

Ott 

13540 

+240 

15575 

15325 27JB8 

7310 

Nov 

15740 

+175 

15625 

16575 207*8 

54*2 

Osc 

159.75 

+140 

16040 

15030 23,153 

2,709 

Jan 

161.75 

+140 

16225 

160.75 15312 

1334 

ftb 

162.75 

+1.75 

162.75 

16130 5.704 

212 

Mar 

1622S 

+140 

16275 

16130 5450 

250 

Tata 




108351 17JKU 

■ NATURAL GAS NYMEX (1Q40Q moBti; VmnCtiJ 


latest 

Daft 


OpBS 



Pries 

chats 

Mgb 

Low tat 

Vol 

Bov 

1490 

-0417 

1.709 

1485 29,420 

5334 

DSC 

1475 

-0411 

2000 

1373 29,134 

2330 

Jre 

2055 

-0405 

2060 

2050 16326 

1,908 

Fab 

1490 +0402 

1490 

1.885 14327 

1315 

Mw 

1445 +0407 

1445 

1440 11,183 

643 

Apr 

1410 +0407 

1410 

1405 6,745 

86 

Tate 




148394 

123*4 


■ UNLEADED GASOLINE 
WMB (42.000 US pfe.; c/US gttfc) 


2 months — * , 

3 months 

Sfhw Rx 
Spat 

3 months 
6 months 
1 y«r . 
Gold Coins 
Kruganand 
Maple Loaf 
Now Sovereign 


.4.80 12 months 532 


latest 




0p«n 


.436 



pries 


HM* 

Low 

tat 

Vol 

- pflroy o*. 

US els equiv. 

Ott 

48.80 

+038 

4735 

4MW 

6.759 12734 

36630 

56200 

No* 

48.70 

+036 

4730 

4835 3132* 

18309 

36030 

56935 

Dac 

5430 

+028 

5536 

5435 

13736 

3761 

366.10 

576.75 

Jre 

5470 

+0.16 

5*70 

5430 

8396 

1,180 

380.00 

59430 

Fab 

5440 

+0.15 

5430 

5430 

4318 

167 

S pries 

£ equiv. 

Hsr 

5530 

+aio 

5545 

5545 

14*7 

54 

397-400 

251-25* 

Total 





75379 38361 

404.90-40745 

• 








92-05 * 

58-81 









GRAINS AND OiL SEEDS 

■ WHEAT LCE E per tonne} 

SIS OqV opm 

■ Mgb law tat Vtt 

10430 -1.T5 105.70 10630 2A41 321 

107.00 -135 106.00 107.00 1,887 <58 

109X5 -130 110.00 10U0 1328 252 

11133 -1D0 112D0 111.48 1J70 68 

i - - 253 

7,188 796 

■ WHEAT CgTBjOOObu min; csnte/OOb buttwB 

DSC 483/4 +15/0 mo 38610 48J34 9.824 

liar 411/0 +13/6 *13/0 4038 18338 2330 

May 38314 +1QM 394/0 386/4 2.710 481 

Jot aaon + 7/0 sbmj arao spbi sob 

sap 3634) +6/2 3634) 3SBM 118 2 

Dac 368/D +®= 3894) 3884) 84 

Totel 76AM 134*3 

■ MATZE C8T (5JXX) au min; cataaggb bushel) 

DM 215/8 +1/0 217/0 214/4106X06 14457 

Mr 225/2 +045 228/4 224/2 47455 4,178 

Bqi 23341 +0K 234/4 232/0 18426 1438 

Jtt 237/8 +045 2384) 237/D 19,133 1,488 

Sap 241M +0* 2*2/4 2*1/2 1425 11 

Dac 24VB +14) 2484) 24SD 7434 .339 

Tate 228434 22488 

■ BARLEY LCE (E par tonna) 


SOFTS 

■ COCOA LCE (E/terme) 


Sap 

Dm 

TBW 


San Daft 


888 

1018 

1831 

1043 

1054 

1071 


■gh Low tat Yd 

867 878 27408 1412 

1018 1012 36468 808 

1033 1025 12423 304 

1045 1042 8488 63 

- 0467 308 
1070 1068 8463 « 

104442 vm 


m COCOA CSCE no tome* Worm**) 


■ COCOA (ICCO) (SOflVtonnaj 


5*9 28 
Daly _ 


Pike 

.101040 


1019,87 


■ CONS LCE (SAonMft 


Mar 

M«T 

Total 


10345 -055 10175 «« 
10645 -Q_35 ioiB5 10543 

10775 -025 

10845 


483 

410 

1ZS 

48 


He* 

3875 

-15 

3940 

3840 820 2244 

Jen 

3855 

-10 

3900 

3824 10A69 2410 

Iter 

3758 

-22 

3810 

3730 15,127 816 

■tar 

3723 

-12 

3752 

3696 7422 123 

Jtt 

3880 

-48 

3715 

3660 2378 20 

Sep 

3650 

- 

- 

- 1224 

TOW 




3736* 6496 

■ COFFEE *C* CSCE (3<300foa; cantatas) 


■ SOYABEANS CBT (SJKObu fata; cstts«ft tuhtt) 

DSC 

■tar 

2(2Lffi 

21240 

-735 21230 20730 
-735 21530 21130 

213B5 7,124 
9357 1389 

(tor 

6380 

■m 

542/4 

536/4 77737 213*2 

Jsa 

546/2 

-7/4 

S2M 

5480 21332 

3,616 

MW 

21536 

-830 21830 21536 

3467 

327 

tar 

BOB/2 

-7/8 

562/2 

8930 13,129 

1358 

Jtt - 

218.75 

-830 217.75 216J8 

1,179 

52 

M*T 

564/4 

-«B 

5700 

564/0 6347 

648 


21550 

-830 21830 21030 

S2S 

3 

Jtt 

5706 

-6/4 

STM) 

570/2 12302 

937 

(toe 

216.75 

-830 21730 218,75 

745 

75 

tag 

.572/4 

-SO- 

5780 

572/4 276 

8 

Tote 



36,766 8470 

Total 




138778 28490 

■ CORVE QCO) (US conta/pouncQ 




■ SOYABEAN Oa-CST (SqOOOaaK cantata) ~ a 


Oct 


-aiB 2549 2544 12452 5411 

-028 2444 2445 38.779 9420 

•045 2448 2340 9488 1408 

-024- 2177 2150 9.113 2484 

•624 2180 2343 5407 1248 

-021 2135 2113 4,748 1401 

Tote 82420 ajm 

m BQYA—A NMEA^Cgr (100 tons; SAorQ 


p*na 

2448 

girt 

2154 

2133 

2114 


.20423 


20148 

204.18 


■ No7 PREMIUM RAW SUGAR LCE (certa/Iba) 


Ott 

161.8 

■13 

1623 

1812 

7395 

9282 

DSC 

1614 

-1.4 

1624 

1613 45343 11.978 

JM 

1633 

-13 

1844 

183.1 

12235 

4410 

Iter 

1884 

-1.7 

1683 

t8E3 11391 

4,415 

•far 

mi 

-1.7 

1703 

1695 

8370 

1,882 

jtt 

172.4 

-1.7 

1733 

1723 

4.475 

1457 

Tata 





59412 33456 

■ POTATOES LCE (C/toms) 




Itor 

1503 

. 

. 



_ 

Mar 

1053 

- 

- 

. 

- 

- 

Apr 

2293 

44 S3 

221. Q 

775 O 

1,165 

145 

■tay 

3*03 

- 

- 

- 

- 

- 

Job 

1073 

- 

• 

- 

- 

- 

TPM 





1,168 

148 

■ FREIGHT (BJFFBO LCE {SlOtadax pofat) 


Ott 

1725 

+20 

1738 

1715 

223 

72 

taw 

1700 

+14 

1715 

1695 

868 

70 

Jsa 

1845 

+20 

1652 

1830 

314 

ee 

Apr 

1825 

- 

1640 

1825 

839 

103 

Jtt 

1425 

-23 

1450 

1460 

416 

10 

Ott 

1485 

. 


. 

107 


Total 


. 



2497 

8*1 


Ctas 

Pnw 





BR 

1658 

1840 






Ott 

1234 

+032 

, 

. 

114 

. 

J*B 

1132 

- 

- 

- 

- 

- 

Mr 

1238 

- 

- 

- 

90 

- 

TaW 





204 

- 

■ WHITE SUGAR LCE ($/tanns} 



Bsc 

32940 

-230 33230 328.00 

3377 

766 

Mr 

32830 

-2.10 

33130 

7398 

2G3 

■tar 

329.70 

•230 33140 32830 

1321 

155 

Aag 

32940 

-230 

33230 32930 

1.120 

81 

Ott 

31240 

•230 

- 

- 

391 

- 

DSC 

311.40 

-230 

- 

- 

4 

- 

Total 





14,111 

1348 

■ SUGAR 11’ CSCE tll&OOOIbK cents/fes) 


Ott 

1231 

-038 

12.74 

1231 

2308 5.751 

tar 

1240 

-aie 

1239 

123810277513394 

May 

1241 

-at* 

1237 

1238 17,049 1379 

Jtt 

1228 

-0.15 

12.45 

1226 

10J)47 1,722 

Ott 

1132 

-023 

1220 

1130 

8303 1355 

Mr 

1133 

-0.10 

11.75 

1175 

1252 

284 

Ttttt 




142^*88*388 

■ COTTON NYCE (5O,00Cft»; oentertbs) 


Ott 

67.40 

-035 

8735 

8725 

237 

29 

DSC 

6733 

+ft47 

8738 

8735 273*3 3,139 

■r 

8832 

+034 

6930 

8980 10308 

510 

■tar 

70.46 

+037 

7030 

7030 

5325 

326 

Jtt 

7130 

+030 

7145 

7130 

3387 

95 

Ott 

8830 

+035 

8975 

E970 

488 

1 

Tttal 





MM 

NM 

■ ORANGE JUICE NYCE (15.00aba; cantatas) 

Itov 

9430 

-525 

9730 

92.10 

9353 

998 

JM 

97.75 

-435 10030 

97.70 

B497 

516 

Hr 

10040 

-430 10325 10030 

4,739 

15B 

■W 

10430 

-430 107.00 10330 

1368 

33 

Jtt 

10720 

-430 

- 

- 

6TB 

21 

Sap 

10975 

-430 

- 

• 

in 

30 


TOW 


23482 1,716 


SpICM 

Black pepper price* .hot up this week to levels 
not seen In many years, report s Man Foductan. 
Spot suppDas In Europe were almost corn- 
pit te/y exhausted and supplies from origin 
ware vary hard to obtain. Aa demand far pep- 
per has been coming fa from unary consuming 
rr wka ta prices could not but facr— a very 
steeply. Black pepper grade 1 was quoted at 
about US$2,750 a torn. The highest price paid 
was far Mttabor MG1 at S2£75. Ctf. ex-new 
crop, for Fatxuny/MBrch s hipme nt Demand 
tor white paper remafaa d Butted. Nona the leas 
the price want up as well, to about $3,400 a 
tome, ctf. Here too s^iplles were hard to 
obtain. 


VOLUME DATA 

Open Interest and Vokana data drown for 
connect s traded on COMEX. NYMEX. CBT, 
NYCE, CME, CSCE and IPE Crude Oil are one 
day In 


INDICES 

■ HE UT ER3 (Base: IB/9/31+100) 

Sop 30 Bap 29 month ago yaar ago 
2090.7 20832 2097.4 1SB12 

■ CRB Futises (Base: 1907=10© 


Sop 29 

230.67 


SopflB 

23048 


ago yaarago 

233.16 216.12 


MEAT AND LIVESTOCK 

■ uvg CATTLE CME (40.000ft)C,- cantatas) 

Sett Day's *•» 

plica Chang* Kgb Lew W M 
Oct 63.500 +0.12S 81900 87400 18486 5471 

Deo 88400 +0.475 80.775 67400 21405 3405 

M 87.700 +0425 87450 87400 14452 1433 

far 68450 +0450 08450 68400 0420 397 

JBa 85450 +0.150 05450 01500 2459 147 

i» 0,400 +0.128 65.400 81100 1.103 59 


Ttttt 


LIVE HOPS CME waPOOtfas; cantatao) 


68.283 12413 


Dm 

1820 

-21 

1348 

1316 39391 

8388 

Ott 

Mr 

1373 

-20 

1397 

1367 16,111 

537 

Dm 

May 

1403 

-20 

1419 

1402 6,112 

53 

M 

Jtt 

1431 

-20 

- 

- 2380 

1 

Apr 

Sta 

1458 

-20 

- 

■ 1304 

- 

Jon 

Dae 

1480 

-25 

1498 

1480 4363 

1 

AW 

Ttttt 




74788 3390 

Ttttt 


6401 2L208 
11014 2,487 
4,747 1,108 
1821 641 

1488 250 

185 26 

28483 6411 
■ PORK BELLIES CME (40.00aba; cente/foe) 


38425 -ft025 37450 38425 
38,400 -0478 37400 38150 
37450 -0450 37400 38800 
37425 4)480 37.775 37.100 
42.700 -0225 43450 41325 
41.950 -0.100 42200 41.700 


Ml 

88780 

•0.673 

40300 38350 

7,451 

840 


39950 

•0.475 39300 38350 

esa 

39 

MXy 

40025 

-0350 

49700 49000 

208 

10 

Jtt 

40350 

-0.13 

41.450 40300 

214 

22 

Aug 

Ttttt 

39860 

-0.450 

- 39380 

46 

8378 

1 

912 


LONDON TRADED OPTIONS 

SMca price $ tome — CaDa— — Putt ■— 
■ ALUMINUM 


(99.7%) LME 

Nov 

Fab 

Nov 

Feb 

1600 

40 

83 

35 

83 

1625 — 

28 

71 

48 

75 

1650 - 

20 

80 

64 

89 

■ COPPER 
(Breda A) LME 

Nov 

Feb 

Nov 

Fab 

2800 .. , 

43 

89 

69 

113 

2650 

25 

69 

101 

142 

2600 

14 

83 

199 

175 

■ COFFEE LCE 

Nov 

Jan 

Nov 

Jan 

3800 ■■■■ 

297 

387 

22 

142 

3850 — 

258 

368 

31 

161 

3700 

218 

337 

43 

182 

■ COCOA LCE 

Dec 

Mar 

Dec 

Mar 

975 - , — . 

44 

94 

33 

51 

1000 

33 

80 

47 

62 

1050 

17 

69 

81 

91 

■ BRENT CRUDE IPE 

Nov 

Dec 

Nov 

Dec 

I860 - - - 

60 

85 

18 

42 

1700 

28 

58 

32 

B2 

1750 

8 

37 

- 

- 


LONDON SPOT MARKETS 

■ CRUDE OIL FOB (par baittt/Nov) *or- 


Dubai 

Sl5.75-5.BOu 

+0.03 

Brent Blend (dated) 

$16.74-6.77 

+0.155 

Brant Bland (Nov) 

S16S4-6.97U 

+0.116 

W.T.L (1pm ott) 

S1S.18-8.17u 

+022S 

■ OIL PRODUCTS NWE prompt delivery OF (tame) 

Prarrtum Gaaofine 

$172-175 

+3 

On 06 

$157-158 

+3 

Heavy Fuel 08 

577-80 

+0.5 

Naphtha 

$184-165 

+3 

Jet fuel 

$178-179 

+3 

Prtebum Aigm assessments 



■ OTHB1 



Gold (par troy oz)4 

$39360 

-1.70 

S»ver (per troy «t)4 

559 JO 

-380 

Ptatfaum (per troy ox.) 

$419.25 

+1J0 

Ptttadhan (par troy at} 

S152D0 

+0.15 

Copper (16 prod.) 

124.0c 

-4.a 

Lead (US prod) 

3925c 


Tin (Kuala Lunpu) 

13.41m 

-0.01 

Tin (New York) 

250.5c 


Cattle (bre weighty 

117.39P 

+036* 

Sheep flhra weWt*C 

88.77p 

+0 sr 

Pigs (to weight)© 

76.87p 

+2.1 T 

Lon. day sugar farm) 

$313-60 

+4.70 

Lon. day auger (wte) 

S33S.50 

+4.00 

Tate 9 Lyle export 

£311-00 

+3.00 

Bariey (Eng. feed) 

Una 


Maize (US No3 Ytfow) 

$130.0 


Wheat (US Doric North) 

eisao 


Rubber (Novflf 

92-G0p 

+1.0 

Rubber (Dec)* 

92.00p 

+1.0 

Rubber KLRSSNol Oct 

34550m - . 

■hLO 

Coconut OU (PhD)§ 

$645-Qz 

+10 

Pttm O* (Malay J§ 

$637.51 

+s 

Copra (PHI)§ 

$408 

+3 

Soyebeane (US} 

ei57J)z 

-ID 

Cotton Outlook ‘A’ Index 

73.80c 

-0.05 

Woohopa (B4a Super) 

463p 

-10 


C pw tome w*aM omratoa sand. p psncttkg. c cess/to. 
r rfaggo/hu. m .Istafiton cantekg. u Nov. t OeL z Ssp/Ott. 
w Sap . V London Physical. § OF Bttte dan. ♦ Mon 
market dose. ♦ Sheep (Uv* wa/frit prices} * Change an 
imak. O Mom am far pmvfaua dw. 


WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONOS 

Had Day's Week Month 



Coupon 

Data 

Price 

Ghmge 

Yield 

•BO 

■90 

Australia 

9.000 

09/04 

92X100 

-0X90 

10X0 

10.16 

9X4 

Bttgkxn 

7250 

04/04 

91X000 

-0200 

8X3 

8X9 

8X7 

Canada* 

(L500 

08/04 

04 9000 

+0/400 

axe 

8X6 

8.78 

Denmark 

7.000 

12A34 

88X200 

-0250 

9.02 

9.12 

8.82 

Franca STAN 

aooo 

osraa 

101.8800 

+0.180 

7X8 

7X8 

724 

OAT 

5.500 

04/04 

52.9900 

-0.060 

8-12 

8.10 

7.90 

Germany Trau 

7^00 

09/04 

99.0800 

-0X30 

7X3 

7X9 

7X5 

IWy 

8.500 

08/D4 

82X100 

-0.490 11^*5t 

11X7 

11.78 

Japan No 119 

4.800 

06/99 

103X310 

-0.170 

3.89 

3X6 

4.10 


4.100 

12/03 

97.1400 

+0.016 

4X4 

4X1 

4.73 

Neflwrtanda 

5.750 

01/M 

Ra^cnn 

-0360 

7.58 

7.85 

7X5 

Spain 

8.000 

05/04 

81.6600 

-0/170 

11.15 

11.18 

11X8 

UK oats 

6.000 

0BA9 

89-22 

+1/32 

a 63 

a 72 

a 36 


8.7B0 

11/D4 

86-11 

+7/32 

8X1 

axe 

8.59 


S-000 

1GDS 

101-25 

+7/32 

8.77 

8X5 

8X2 

USTraasixy* 

7250 

08/04 

87-15 

+5/32 

7.82 

7.58 

721 


•7JM0 

11/24 

98-06 

+11/32 

7X3 

7X0 

7.50 

ECU (French Govt) 

5.000 

04/M 

83.0800 

-0210 

8.67 

8.71 

8X9 


US INTEREST RATES 


LuncMma 



Traasuy BUs 

end BondVWds 




rtofl BVMltl 





71, 





tartar loan ram 

TtewmooBi — 

4X0 

Fhtrm r 

— 7JB 

FaUtatts 

FattattStt teavoAn- 

ft 

SbnreA — 
Oosyer 

5X8 

5X5 

utsz 

avwr 

7X1 

7X3 


BOND FUTURES AND OPTIONS 
France 

■ NOTIONAL HTPiCH BOND FUTURES (MATIF) 



Open 

Sett prioe 

Change 

«9h 

Low 

EsL vcL 

Opan Int 

Dec 

110X2 

110X2 

-a 08 

111.06 

110X2 

157X81 

119,429 

Mr 

iiaio 

iiaoe 

-axe 

110.18 

109X0 

1.133 

7X73 

JUi 

109X8 

109X2 

-0.10 

109X8 

109X8 

2 

354 


■ LONG GILT FUTURES OPTIONS flJFFg £50.000 64ths of 100% 


Strike 

Price 

Dac 

CALLS 

Mr 

Doc 

PUTS 

Mr 

99 

2-11 

2-50 

1-27 

2-42 

100 

1-40 

2-21 

1-56 

3-13 

IOI 

1-11 

1-69 

2-27 

3-51 


Eat vot tote. Cala 2017 PoW 231. Plevfaui (fay’s OpM M, CM* GS480 AM 34SM 


Ecu 

■ ecu BOND FUTURES (MATIF) 

Open Settprice Change rtgh Low EaL voL Open Id- 
Dec 60.10 7948 -0.18 8a 10 79.86 1475 8455 


FT-ACTU ARIES FIXED INTEREST INDICES 


US 

■ US TREASURY BOW) Rm«ES (CBT) $10a0003Znd8oM 00% 



Open 

Latest 

Change 

High 

Low 

. Eat voL 

Open fat 

Dec 

98-24 

98-19 

-0-03 

98-27 

98-16 

412X47 

394X50 

Mr 

98-04 

97-29 

-0X3 

96-05 

97-27 

1X18 

24X20 

Jun 

97-11 

97-07 

- 

97-11 

97-07 

854 

10.754 


Japan 

■ NOTIONAL LONG THW JAPANESE GOVT. BOND FUTURES 

(UFFE) YIQOm IQOtte of 1Q0K 

Open Close Ctanga Hgh Low Eat. vcf Open InL 
Dec 10842 108.12 10740 1752 0 

- LITE cortnos vaOad on APT. Al Open in wmet flga. m far wwtoua itoy. 


Lanoon dating, ttaw Yortt mU-<ter YWda: Local mwfcd amodwd. 

t Oota gndudrq wSh h oktag tax at 124 pw own paybfa by no v aa fc tex al 

Pina: US. (JK In 32ndi, ctnara In dadnwl Souca: MUS fawnwabnaZ 

ECONOMIC DIARY - FORWARD EVENTS 


TODAY: G7 finance ministers 
and bank governors meet in 
Madrid ahead of official meet- 
ings of the International Mone- 
tary Fund/World Bank annual 
meeting. 

TOMORROW: G10 ministers 
meet in Madrid. Interim com- 
mittee meeting of the IMF. Mr 
Nelson Mandela, president of 
South Africa, visits the United 
States. 

MONDAY: M0 figures (Septem- 
ber-provisional). US NAPM 
index (September); construc- 
tion spending (August). Meet- 
ing of the World Bank develop- 
ment committee. Brazilian 
general elections. Labour Party 
holds annual conference in 
Blac kpool (until October 7). 
TUESDAY: Opening ceremony 
of the IMF/World Bank annual 
meetings in Madrid. UK offi ci al 
reserves (September). Advance 
energy statistics (August). Full 
monetary statistics (including 
hnnk and building society bal- 
ance sheets, bill turnover sta- 
tistics, lending secured on 
dwellings, official operations in 
the money market sterling cer- 
tificates of deposit and sterling 
commercial paper) (August). 
US leading Indicators (August). 


Japanese trade balance (Sep- 
tember). European Union gen- 
eral affairs council starts 
two-day session In Luxem- 
bourg? European Unioif envi- 
ronment ministers meet in 
Luxembourg. Judgment is 
expected in the Gooda Walker 
case, the biggest legal action 
by loss-making Lloyd’s Names. 
WEDNESDAY: Overseas travel 
and tourism (July). Overseas 
transactions of the film and 
television industries (1993). 
Housing starts and comple- 
tions (August). House renova- 
tions (second quarter). US fac- 
tory orders (August). Mr 
Shimon Peres, Israeli foreign 
minister, visits Los Angeles. 
THURSDAY: Details of employ- 
ment, unemployment, earn- 
ings. prices and other indica- 
tors. Cyclical indicators for the 
UK economy (August-first esti- 
mate). Index of production 
(August). International motor 
show opens in Paris. 

FRIDAY: Balance of visible 
trade '(July). UK economic 
accounts (second quarter). US 
unemployment (September); 
wholesale trade (August) and 
consumer credit (August). Lon- 
don Fashion Week begins. 



DO YOU WANT TO KNOW A SECRET? 

The IAS. Gann Samfasr wM show you how fin marieta REALLY wcric. The amazing 
tradfag techniques of tin legendary WXL Gam can facraaae your prate and coifefti your 
losses. How? That's the secret RfagOBI 4740050 b book your FREE place. 



Currency or Bond Fax - FREE 2 week trial 
also daily gold and silver faxes ; . Annr-wh.thy 


■ LONG TERM FRBTCH BOND OPTIONS (MAT1F) 


Strike 

Price 

Nov 

- CALLS ~ 
Dec 

Mar 

Nov 

— purs — 
Deo 

Mar 

110 

. 

1.95 


067 

1.10 

- 

111 

0X0 

1X5 


1.13 

1X3 

- 

112 

051 

0.89 

- 

1.88 

2.06 

- 

113 

n po 

0X4 

- 

2.38 

2X4 

- 

114 

006 

090 

0.09 

- 

- 

- 


Ek. voL WBL CM)* 24,179 Pirn 23430 . Previous day's aeon W, CM* 203411 Pula 380402. 


Germany 

■ NOTIONAL OB1MAN BUND RJTWW3 (UFFE)~ DM2SO.OOO lOOtfia of 10096 



Open 

Sett price 

Change 

Hflh 

LOW 

Eat vol 

Open Jm. 

Dec 

B923 

88X0 

-036 

89X4 

88X6 

138843 

145997 

Mar 

88X0 

88.08 

-0X0 

86.40 

88.13 

160 

1757 

■ BUND FUTURES OPTIONS (UFFE) DM250,000 points of 100% 




Strike 

Price 

Nov 

Dec 

CALLS — 
Jan 

Mar 

Nov 

Dec 

PUTS 

Jan 

Mar 

8850 

098 

1X0 

1.10 

1.44 

0X6 

1X0 

1X2 

1X8 

8900 

0X9 

1X3 

OBB 

1X0 

0X9 

1X3 

1X0 

2.12 

8950 

047 

080 

0X9 

0.99 

1.17 

1X0 

2.11 

2X1 


EM. «0L fate. CM* 14888 Pun 92)4. PravKxa day* Open tnv. Cab 206210 Pun 186861 


Italy 

■ NOTIONAL ITALIAN GOVT. BOW) (BTP) FUTURES 
(LtFFET Ure 200m lOOha of 100% 



Open 

Sett price 

Change 

Mgh 

LOW 

Esl vol 

Open faL 

Dac 

' 10018 

99.77 

-0X1 

100X0 

99.65 

28839 

66269 

Mar 

99X0 

99.14 

-0X4 

99.30 

99X0 

50 

735 

■ ITALIAN GOVT. BOND (BTP) FUTURES OPTIONS (UFFE) Ura200m lOOths of 100% 

Strike 

Price 










Dac 

Mar 


Dec 


Mar 

9950 


211 

2.79 


1.84 


3.15 

10000 


1.82 

2X6 


2X6 


3-42 

10080 


1X8 

2XS 


2X1 


3.71 


EM. T± M. Clfla res Pun 1020. RMM Oaf a man hL. Cato 1S291 Pun 22678 


Spain 

■ NOTIONAL SPANISH BOND FUTURES (MEFF) 

Open Sett price Chongs H&i Low EaL vol. Open btt. 
Doc 8840 8840 <117 88.72 8846 41.S21 71,170 


UK 

■ NOTIONAL UK QH.T FUTURES (UFFE)' £50,000 32nriS Of 100% 


Open Sett price Change Mgh Low 
Boo 89-18 89-24 +0-10 9GG0 89-06 

M® - 9WM +0-16 


Eat vol Open tn. 
73012 96554 


UK Q6te Price fadfaes 

Ffl 

Sep 30 

.Days 

charge % 

TTur 

Ssp 29 

Accrued 

interest 

xd ad[ 
yield 

1 Up to 6 years (24) 

119X4 

+0.00 

119X7 

1X2 

8X9 

2 5-15 yews (23) 

137X4 

♦0X1 

137X3 

1X8 

10X9 

3 Over 16 yean#) 

153X8 

+0X2 

152X4 

2.13 

9X1 

4 faedewrwbtes (6) 

178X4 

♦0X8 

174X2 

3X1 

nws 

5 Al stocks (61) 

136X7 

♦025 

135.13 

1J8 

9X2 

Ytakts Sep 30 

Sep 29 

Yr ago W 

Low 

Ssp 30 

Sep 29 


6 Up fa 5 yensCS 

7 Over 6 ware (H) 

8 AS stocks (13} 

9 Dab* and loana (78) 
Mstflwi ro u j riJHjkfd — — — 


Fri 

Sop 30 

Osya 

change % 

Dar 

Sep 29 

Aocnisd 

Interest 

xd 

yHU 

184X3 

♦0X2 

184X9 

-0.0 

5X7 

172X8 

+0X9 

172X4 

0X1 

3X5 

173X3 

+0X4 

172X7 

073 

4X4 

125X3 

♦018 

12Z3B 

1X3 

6X9 


LOW 


Sep 30 Sep 29 


coupon 


ago 


,*r 


Low 


20 yrs 
faBCLt 


8.71 

8.73 

6X8 

8X5 

068 

8.72 

7.10 

8X9 

8.61 

B.65 

7X1 

8X1 

9.64 

8.72 

7X5 

8.88 






4X6 

4X3 

2X7 

4.10 

3.08 

3X9 

3.18 
5 

3X9 



&96 8.74 9.18 I 

9.06 746 92S i 

8.92 7.48 9D9 l 


Inflation rate 10% 


Up to 6 yrs 
ewer 5 yrs 


2.13 f*/1) 
2.88 (2071) 


2^4 2J0 1.78 2.97 ( 1/8) 1.19 (18/2 

3.87 3.70 3J71 3.79 pi/^ 2.70 (2071) 

■ 15 yaara 


1 25 years ■ 


9.85 930 729 10.07(20 79) 7.19 (KVT) 9.76 9.79 8.17 9^8 00/9) 739 (ZtVI) a 71 9.73 8J0 &90 (20/9) 7.49 (1Q71) 

Average gross redemption yields » shown above. Coupon Bands: Lwr. 0%-74»%: Modkxn: 8%-lO^N; Hgh:.ll% and over, t Bat yield, ytd Year to data. 


FT FIXED INTEREST INDICES GILT EDGED ACTIVITY INDICES 



Sep 30 Sep 29 

Sep 28 Sep 27 Sep 26 

Yr ago 

HW 

Low 


Sep 29 

Sep 28 

Sep 27 

Sep 26 

Sap 23 

Govt Store. (UK) 
Fbted Interest 

9064 

107X4 

9030 

107X9 

90X3 

107,02 

9010 

107.17 

9027 

107X0 

102.04 

123.06 

107.0* 

13387 

88X4 

100X0 

Git Edged bargafaa 
6-day average 

111.7 

114X 

137X 

116X 

KMX 

107.1 

101X 

113X 

1101 

1143 


* far 10B4, G a v wiw m Saeurtle* Ngd shea oornAaBor t 12740 (VLSq, tow 40. 1 a B/V7SL Ruad htonat Ngh stoM eonsMorc 13347 CI/tTM , tow 5053 Q/1/7B . Bari* 100c Government Sacudties 167107 
28 and Pbnd Im w aw 182B. BE aclMy Mcea r«UMd 1974. 


UK GILTS PRICES 


_1994_ 
■ or- Wp low 


mo 

M Had Price £ - 


1894 _ 

Mil Low 


a- _ IBM— 

aPrtceE +nr- Wga Low 


Starts" (Uses into Hr 1 

fareBpcitt*** 

19*1995 

Bttl 3pc Gas 1990-95 _ 

10>*OC1995 

Trees J2Vpe 1895t$ — 

14pc1*M 

15^«pc 1998# 

Bah 1311001996# 

Dsmeniap 10*1998 

TrwsCw 7pel097tt__ 
T*eei3t*pel9678_ 
Etch 10«IPC 1897 

Tree 8 Lk 1997# 

6*115*1987 

9*0*1998 

Trait 7 tape 19S8& 

Tress M* pc I9B5-9B»_ 

1 foci 9BB-1 

Tren 1 3>ae VS tt 

e*Ji12pc 1996 

TleBi9 1 2pc 189a(4 


Brels nttesi Tren 


846 

11.77 

345 

948 

1203 

1248 

13.71 

1225 

043 

7.19 

1148 

1001 

848 

1278 

9.44 

743 

7.13 

1207 

1252 

1042 

925 


L4S 100M 
540 101 fl 
5.78 B3£xl 
648 I02fi 
744 108 

7A0 108 

7«i!i*ri 
7J4 106A 
840 I03fi 
209 97i 

212 110& 
8b17 i(»u 
238 lOli 
B42117ltfa 
2SB 103* 
154 98& 

854 9*#X 
274 11Bi 
842 12 2S 
279 IVPi 
273 1021] 


tom 

-i, 107* 
-* 

107Q 

__ 1135, 
1174 

-i 12111 

117H 

1124 

+A loo*, 

— 121H 

-U 1144 
110,', 

— 131 IS 
-i 1T« 

1084 

+4 102 
+A 131* 
-4 1«4 
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+4 1184 


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financial times 


WEEKEND OCTOBER I/OCTOBER 2 1994 


CURRENCIES AND MONEY 


MONEY MARKET FUNDS 


MARKETS REPORT 


Dollar trades up 


The US dollar rallied in 
afternoon trading yesterday on 

?u! ok ??«? fiWS wrvice re Port 
that a US-Japan trade deal had 
been agreed, writes Philip Cog. 
gan. 

The dollar, which had been 
trading at around Y98.50 for 
much of the day, jumped sud- 
denly above Y99 on stories that 
the Japanese had agreed to 
relax constraints on bidding 
for government projects. 

The dollar then fell back 
below Y99, after Reuters 
reported a senior US official as 
saying there was no procure- 
ment deal. The official pre- 
dicted that the result of the 
talks would be a partial deal, 
combined with li ght US sanc- 
tions. The US had set yester- 
day as a deadline for the talks. 

Nevertheless, the rumours 
aroused the currency markets 
from the lethargy into which 
they sunk for much of the 
morning session. "The markets 
have been like a startled rabbit 
in the headlights of a car," as 


they await the outco me of the 
talks, according to Mr David 
Cocker, currency analyst at 
Chemical Bank. 

Mr Steve Hannah, head of 
research at IBJ Internationa], 
said that if the dollar does 
break through the Y99 level, it 
could test Y100. But even if the 
US currency rebounded as far 
as Y1Q2/Y1Q3, that would not 
break it out of its long term 
trading range. 

Mr Neil MacKinnon, chief 


Dollar 

DM per $ 
1.56 I- — 


i-55 i n -— 


Sterling 


YenperS 

-- ioo — 


SperC 
— - 159 • 



1.57 - 


DMperE 
!L45 


2+43 — 


French .franc 

FFrper DM 

— 3.410 


3.415 


am M CM Mfr 


2.42 - 1420 


155 /— 


■ PmU hi tfw York 

Sep 30 -—latest-— 

t W 1.5760 

i mth 15755 

3 mth 1.5745 

lyr IJ600 


-Ptev. dm- 
is no 

1.5775 

157B5 

1451? 


economist at Citibank in Lon- 
don, thought the deal would do 
little to help the dollar in the 
medium term. “You need a 
recovery in Japanese spending 
and import volumes to make 
significant inroads into the 
trade surplus," he “With- 
out a shrinking in the trade 


153 r ; ■■■■ ; a 97 * 

September 1904 

Source; FT GnpMe - 

surplus, the fundamental 
underpinning of the yen will 

re main. " 

By the London close, the dol- 
lar was trading at Y98.9700, 
compared with Y 98.5050 on 
Thursday. 

■ Economic news in the US 
and Germany seemed to have 
little effect on the markets, 
figures for German Industrial 
production showed a sharper- 
than-expected monthly fall of 3 
per cent in August "There's 
been quite a lot of bad news for 
the D-Mark this week but it 


. 1.54 

30 . 2 

September 1994 September 1994 


* 



3.430 “ 
30 2 


September 1994 


September 1994 


hasn't been affected," said Mr 
Cocker. 

US data was mixed with a 
strong rise in personal spend- 
ing in August, but a fall In the 
price component of the Chi- 
cago purchasing managers 
index. The trade rumours, 
however, helped the dollar 
against the D-Mark. Itc closed 
in London at DM1.5515, up 
from DM1.5461 on Thursday. 

■ The UK purchasing manag- 
ers' index showed signs of a 
slowing in the future pace of 
growth and rate of price 


increases. But sterling 
remained on the sidelines, elid- 
ing the day down again st the 
stronger dollar (at $L577 from 
Thursday's SI-5810) and up 
slightly against the D-Mark (at 
DM2.4468 from Thursday’s 
DM2.4443). 

■ Portugal said it would cut 
its discount rate from 12 per 
cent to 10.5 per cent on Mon- 
day, but analysts said this was 
a technical rate which would 
have little effect on the escudo. 
The Portuguese currency 
closed unchanged at Esl02/DM. 


■ In the UK money markets, 
the Bank of Tfr> g)anri offered 
£499m of assistance at estab- 
lished rates after forecasting a 
£800m shortage, revised from 
an earlier estimate of £70Qm. 
Overnight rates moved within 
the range of 6 per cent to 4% 
per cent 

■ OTMBCUMPiCm 

Sap 3D £ S 

HBlQ*y 171 JBO - 172JSB 108.930 - 100090 
tan 776000 - 278100 174850 - T79LD0 
fenttfl 04682 - 0.4698 02070-02978 

ftftrd 364644 ■ 36534.0 231300 - 231600 
Rutoa 421030 - 422005 287100 - 267000 
UAE 17857 - 07074 16715 • 1*735 


Money Market 
Trust Funds 


Btri M 6U HO 

CAP Money HmgaoMBi Co Ltd 
48 Fentuy Road, Yatontgg TNfl 2JD 0732770114 

CPCHn DmmS Fiad_ | 4 AS -[ *B1 

dmmdweihhba Nas - I zb* a-uti 

OmHOWCIWni Ufi -I 3.15 13-4171 

The OF BtaWm Omit Account 
2F»B»M,UaamEC2Yl*0 071-5881018 

IteOH 1 400 -I 4^a(3-MR 

fert. BO of Roof anchor England* 

J Fora Steel. L<mImH2Y5M 071-988 IBIS 

(Mont 1 600 -1 509 1 3-Hn 


Money Market 
Bank Accounts 


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4«9HnMj0flMK3RAK O7»-:HH)0O 

tu rn aH * i m o bmc to r li m n » m 

ISUMMaSnolinaanGCJtHU Bl4a»U 

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Dao Hcng Bank {London) PLC Pronto Att 
IO«0«cSAIMnEC3)M 071-608 1818 

£20700-— SJO 413 | 3.01 1 to 

naooi-czojm 4Ad xi7 4*8 

C2-8«WnOJ*»-_ 400 300 408 to 

Mptew 100 fiS I 103 1 St 

Davtohem Tit Pte-Careaham 500 ACC 

8ajmaitatOHH340U MI-B33S4M 

nOLOn-IMnc I 7.50 0823 I 704 6-8H 

Cioooo-itnr *W UOS 800 vnny 

OCOD-RBXnniBI.'VBl 8J3 61875 I 784 1 

FUeffiy Mono? Haricot Account 
FtMty nmgg Ganttw ltd. Ogamai Fin. 

IkMVInSurr^. iff* h 

n-rs69 ioo on I tool » 

£1000-0099 400 300 400 00 

E10O00-C40W 450 1375 458 W 

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£100000* 900 3001 135 1 «r 

(5HUOO* Itaf tHWRmn MM 


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400 

109 

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MU 

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697 

itorty 


£50000 Ml MOM SB 438 SOB 0* 

£2U00nr«UD9 950 413 901 Or 

CIOOOQB £24099 8.18 309 BOO £ 

CSOOOttCSOS 450 138 450 09 


ULmoHnM — 1 la 

CSlOODBM.M- I 4-75 

£10000 BC4.B90 450 

CSOOOtaCflOH 1 455 

JuSan Hodge Bank Ltd 


114)5 0 

386 484 £ 

138 458 OB 

110 4X Ob 


0222 220800 

BldRndRmacDdJtC I 850 488 I 801 1 

3MBiMHMDNteta &2S 409 640 - 

IIBAMRaDOMliCcI 028 409 I &43> 

llduiberehme Rnwcd Enm 

S term Yfay. Hook. EteM<mte 0258 780000 

£50000* I 178 431 f 508 I Ob 

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i— r ajii i— Bmii— 

£21001 -noa 000 [4 79 5SB2S >40364 Ob 

noojooi tfam I 550 imbnwl ob 

Kletewort Benton Ltd 

1M UnM lam fto, Unw wri £8T oJi-MfiSte 
KJ.CA f£2J00-l >400 JOOl 4 07 1 DMy 

Wolnwort Benson Prints Bank 
8— OWMIUM h — »H bH-o W 
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2« 1H Mh 

201 1(2 M01 

100 407 HI 

lit 433 Hh 

156 4*5 tm 


Aituthnot Lattarn ft Co Ltd 

80 fly KM. IMBI ECTY MY. 


POUND SPOT FORWARD AGA5NST THE POUND 


DOLLAR SPOT FORWARD AGAINST THE DOLLAR 


Europe 

Austria 

Belgium 

Danmark 

FMand 

Francs 

Germany 

Greece 

Ireland 

Italy 

Luxembourg 

Netherlands 

Norway 

Portugal 

Spain 

Sweden 

Switzerland 

UK 

Ecu 

SDFtf 

Americas 

Argentina 

Brazil 

Canada 


Closing Change 8 U/bffer 
on di/ spread 

(Sch) 17.2185 *0.0122 091 - 279 

©Fr) SO-3379 *0.0874 904 - 854 

(DKr) 9.6978 *0.0038 932 - 024 

(FM) ?.6888 -0.0342 585 - mi 

IFFiJ 8.3491 *0.0078 444 - 537 

PM) 2.4488 +00025 452 - 483 

Pr) 373.119 *0847 685 - 552 

(IQ 1.0122 +0.0006 114 - 130 

(L) 2480.12 +3.16 855 - 169 

(LFrJ 50.3379 *0X874 904 - 854 

(FI) 2.7405 *0.002 392 - 417 

(NKr) 10.7045 +0TKM6 995 - 096 

(Ea) 249.482 *0.229 245 - 718 

(Pta) 202.763 +0243 580-945 

(SKr) 11.7961 -0.0304 845-077 

(SFr) 2.0309 +0003 294 - 323 


Day’s Md One month Throe months One year 

Mgh tow Rate %PA Rata ttPA Rate 96PA 

172285 17.1819 172142 03 172023 0.4 

303890 502180 503579 -05 502729 OS 493429 02 

92025 9.6830 92028 -02 98142 -07 92289 -02 

7.7230 72420 - - - - - 

82S45 8.3255 82501 -0.1 03452 02 82774 09 

04486 22413 2248 02 2-4429 0.6 22101 12 

372.885 371225 - - - - - 

1.0138 12086 12121 Ol 12123 -0.1 1.0145 -02 

2462.79 2454.14 246822 -3.0 247727 -22 251922 -2.4 

>03880 502160 603579 -02 502729 05 492429 08 

2.7452 2.7365 2.7388 02 2.7383 06 2.7009 1.4 

10.7121 100886 107tM Ol 107075 -Ol 10.7085 OO 

750902 240982 251212 -82 254292 -7.9 

102263 2Q&415 203.193 -22 203.883 -22 208288 -1.7 

112670 11.7787 11.8151 -13 112826 -22 122761 -24 

2232* 22281 22284 12 2 0228 13 1282 24 


Bank of 
Eng. IiyJsh 


Change BUfoffer Day's mid One month TTsee months One year j J* Morgan 
on dey spread high low Rots 96PA Rate %PA Rata %PA mdex 


tptBcian 

nojxn-EZ4*( 
£21000 -£483 
£90400 cr non 


2.4375 130 HSi 

1*0 4*7 KOI 

1375 4*0 Wl 

liBl 4*5 MI) 


71 LsnHW S«. Unoon CC3P3SS 


- 12798 *0 0006 791 - 904 

- 0.830532 


12606 1-2773 12801 -02 12802 -0.1 12747 94 


(Peso) 12771 -0.0035 786 - 777 

(Rl) 12468 -0.0128 448 - 488 

<CS) 2.1153 -0.0076 142 - 154 


12612 12759 
1.3508 12429 


Europe 

Austria 

Belgium 

Denmark 

Finland 

Ra n ee 

Germany 

Greece 

Ireland 

Italy 

LiflOTiboug 

Netherlands 

Norway 

Portugal 

Spain 

Sweden 

Switzerland 

UK 

Ecu 

SDRf 

Americas 

Aigendna 

Brazf 


(Sch) 

109185 

+04)35 

160 - 210 

10.9710 10.8880 

10.9185 

0* 

102183 

ao 

102435 

a? 

104.1 

(BFr) 

31.9200 

*0.135 

000 - 400 

31.9400 31.8040 

31.92 

0.0 

31.93 

-0.1 

31.89 

-02 

105.7 

(DKr) 

64861 

*0.0175 

851 - 871 

6.0871 

62676 

8.0908 

-02 

&1071 

-1.1 

8.1073 

-1.3 

105.1 

(FM) 

4*829 

-0.0096 

579 - 679 

4.8859 

42375 

42829 

0.0 

4.8819 

0.1 

4.8954 

-0.7 

80 2 

(FFr) 

6J2943 

+O.D1H 

830 - 955 

52955 

52795 

52983 

-04 

52967 

-02 

5.3018 

-ai 

108.5 

(0) 

1.5515 

+0.0054 

510-520 

1.5520 

1.5485 

1.5516 

-01 

1.5505 

02 

12437 

02 

106.6 

(Dr) 

238.600 

+1 

400 - 800 

238.800 pop 

2382 

-12 

237.475 

-12 

239275 

-1.4 

882 

(KJ 

1^580 

-0.0049 

572 - 587 

1.5835 

12572 

12577 

02 

12565 

(X4 

1.5378 

12 


(U 

156000 

+5.9 

9S0 - 050 

1580*0 165420 

156425 

-32 

15723 

-32 

16106 

-3.4 

782 

(LFr) 

31 MOO 

*0.136 

000 - 400 

319400 312040 

3122 

ao 

3123 

-ai 

31.99 

-02 

104.1 

(R) 

1.7378 

*0.0066 

375 - 380 

1.7397 

1.7326 

1.7378 

ao 

1.7387 

02 

1.73 

0.4 

1052 

(NKr) 

8.7979 

+0.0199 

889 - 889 

6.7889 

8.7700 

8.7929 

-02 

62134 

-12 

62819 

-1.4 

98.1 

(Es) 

158^00 

+4X54 

100 - 300 

168.950 157.890 

158245 

-4* 

18027 

-4.7 

184.8 

-42 

952 

(Pta) 

128.575 

*0.475 

500 - 650 

128.660 128.190 

12828 

-22 

12929 

-22 

132.126 

-2.8 

802 

PIG) 

7.4801 

-0.0005 

751 - 851 

75066 

7.4549 

7.4953 

-ZA 

72271 

-22 

7.7101 

-3.1 

802 

PFH 

1^878 

*0.0051 

873 - 883 

12883 

12845 

1.2B8B 

12 

12837 

1.3 

12896 

1^4 

1081 

« 

1.5770 

-0.004 

785 - 775 

12817 

1.5782 

12788 

02 

12756 

0.4 

12612 

12 

682 

- 

12323 

-0.0037 

320 - 32S 

12380 

12320 

12317 

0* 

12308 

02 

12248 

as 

- 


Bank of Ireland Mte Interest Choqno Aco 

38-40 Mpl SC SOughSLl IB. 07M61B51fl 

£10*00* 4*00 3*00 4*60 1 Ob 

0*00-49*90 1 100 ISGOIlOMI Ob 

Bank of Scotland 

38 TlbMdfiMtf# St. EC7P TEH 071 -SOI 6448 

■MUHUi. 150 UB I UB| Mn 

(3WW-CZ49*®— _ «I» 300 4*7 MSI 

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4*7 OB 
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-0206 530 - 550 02550 02610 


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Mexico (New Peso) 5.3626 -0.015 569 - 882 

USA ($) 1.5770 -0004 785 - 775 

Padflc/MkMe Emrt/Africa 
Australia (AS) 2.1311 -0.0044 298 • 323 

Hong Kong (»<S) 12.1858 -00305 811 - 904 

India (Rb) 48^4587 -01239 351 - 622 

Japan (Y) 156.076 *0344 947 - 204 

Mdtoyeia (MS) 4.0438 -0012 417 - 458 

New Zealand (NZS) 22167 -0.0012 157 - 217 

PhHppinee (Paso) 41.1597 -00241 878-516 

Saudi Arabia (SR) 5.9153 -0215 130- 175 

Singapore (SS) 22379 -0.0106 384-394 

S Africa (Com.) (R) 5.6244 -00153 202 - 285 

S Africa (Fm.) (R) 07338 *02822 159 - 517 

South Korea (Wan) 125055 -2.37 684-026 

Taiwan (IS) 41.2386 -01297 467-305 

Thaland (Bfl 392866 -00987 662 - 080 

1S0H rates lor Sap 2B. adtoflw iptedl ki (he Pound Spar tat 
martial cut are ki^ad by oararti Maraat es SMfeg Ms at 
0ita and tne Date teat HSh danved tarn THE WM/RB2BQ 


2.1255 

21137 

2.1147 

03 

21127 

02 

21027 

06 

882 

Canada 

(CS) 

12414 

-0.0014 

411 - 416 

12450 

12411 

12415 

0.0 

1.3409 

ai 

12468 

-04 

842 

52715 

52538 

H 

A 

- 

- 

- 

- 

- 

Mexico (New Peso) 

3.4005 

-0301 

980 - 030 

3.4030 

32960 

3.4015 

-0.4 

34033 

-02 

34107 

-03 

- 

1.5817 

12782 

12768 

02 

1.5758 

04 

12812 

1.0 

821 

USA 

(S) 

- 

- 

- 

- 

• 

• 

. 

_ 

_ 

. 

. 

95.4 










Pedflc/MUdls Eaat/Africa 












2.1396 

2.1293 

2131 

0.0 

21324 

-02 

21506 

-0.9 

- 

Australa 

(AS) 

12514 

*0.0006 

510 - 517 

12546 

12499 

12517 

-02 

1.3524 

-02 

12587 

-as 

*RR 

122215 121809 

12.1819 

04 

121808 

02 

121879 

OO 

- 

Hong Kong 

(HKS) 

7.7272 

- 

287 - 277 

7.7277 

7.7267 

7.7Z7 

0.0 

7.7277 

ao 

717427 

-02 

- 

49.6020 49.4350 

- 

- 

- 

- 

- 

- 

- 

Incfia 

(Rs) 

312625 

- 

575 - 675 

312675 312573 

31.4475 

-32 

31.5925 

-22 

- 

- 

- 

156207 155210 

166.678 

81 

154.701 

32 

149256 

4.4 

188.9 

Japan 

(Y) 

983700 

*0.465 

200 - 200 

99.0200 06.4000 

98.74 

2.B 

98.19 

32 

95.805 

34 

1492 

4.0539 

42414 

. 

. 

• 

• 

- 

- 

- 

Malaysia 

(MS) 

22642 

-0.0012 

637 - 647 

22660 

22620 

2255 

42 

22437 

32 

22172 

-2.1 

- 

2.6226 

22147 

2.8228 

-1.8 

26304 

-1.8 

prwgn 

-12 

- 

New Zaaiand 

(NZS) 

1.6606 

*0.0034 

SS2 - 820 

1.8620 

12567 

1.6815 

-0.7 

1.8834 

-0.7 

1.6887 

-as 

- 


412710 412585 - - - - - - 

52328 52128 - - 

22480 22362 - - - 

52554 62201 - - - 

6.7862 06634 - - - 

126229 125023 - - - 

412472 41.1389 - - - - 

392080 382650 - - - - 

3*» show only the M tm dadmaJ ptacaa. Ferwwd rates ms nor cSrecOy i 
cUrttad by ttis Bark of EngHid. Bssa svoracs 1965 ■ 1002fet, Oder and MJd 
CU39NG spot RATES. Soma veusa are rauidad by the F.T. 


PhiSppInee (Peec^ 201000 *006 500 - 500 201500 25.9500 

Saudi Arabia (SR) 3.7510 -0.0001 507 - 612 3.7516 3.7505 3. 

Singapore (SS) 1.4825 -0003 620-830 1.4855 1.4820 1. 

S Africa (Com.) (R) 32665 -0.0006 650 - 880 32765 3.5850 3 

S Africa (Fm.) (R) 42700 +0.05 600 - 800 42950 422S0 4J 

South Korea (Won) 796.700 +02 500 - BOO 798200 788200 E 

Taiwan (IS) 26.1500 -6.0168 000 - 000 262000 28.1000 2 

Thailand (Bt) 242750 - 700 - 800 24.9830 24.9600 25.1 

73DR ate tor Sap 23. Btttoffar apraadi ki the Doiter Spot table snow only Dm las threa da 
burn repaid by curant in a u e M raaa. UK. kaMnd 8 ECU am Quoted ki US cmncy. J2. 1 


Philippines (Peeo) 28.1000 
Sautfl Arabia (SR) 3.7510 
Singapore (S^ 1.4825 

S Africa (Com.) (R) 32665 

S Africa (Fm.) (R) 42700 

South Korea (Won) 796.700 
Taiwan (IS) 26.1500 

Thedand (Bt) 242750 


I -0.4 3.7564 -0.6 3,775 -02 

! 1.1 1.4793 02 1.4725 OJ 

: -5 2 32103 -42 3.887 -3* 

■ -92 42825 -8.7 

’ -4.5 8052 -32 823.7 -3.1 

’ -02 2821 -02 - 

I -3.5 2S.175 -32 25255 -2.7 

I placoe. F u n iw d raraa Me not rSroctfy quoted tt> the martiat 

»n nomi na l indkes Sep 29. Beaa awnapa IBBOalOO 


CROSS RATES AND DERIVATIVES 


EXCHANGE CROSS RATES 


EMS EUROPEAN CURRENCY UNIT RATES 


Sep X 


BFr 

DKr 

FFr 

DM 

K 

L 

R 

NKr 

Es 

Pta 

SKr 

SFr 

e 

CS 

S 

Y 

Ecu 

Belgium 

(Bfi) 

100 

19.07 

1629 

4.880 

2011 

4888 

5.444 

2126 

4952 

402.7 

2343 

4.033 

1.087 

4202 

3.133 

310.0 

2241 

Denmark 

(DKr) 

52.44 

10 

0700 

2249 

1254 

2583 

>(W» 

11.15 

259.9 

2112 

1229 

2.115 

1.042 

2204 

1.643 

1623 

1333 

France 

(FFi) 

8028 

11.49 

10 

2230 

1212 

2946 

3282 

12.92 

298.7 

2422 

14.12 

2.431 

1.198 

2233 

1289 

186.8 

1232 

Germany 

(DM) 

2058 

3924 

3413 

1 

0414 

1006 

1.120 

4274 

1022 

9227 

4220 

0.830 

0.409 

0885 

0245 

63.75 

0223 

Ireland 

(K) 

48.73 

9.483 

0250 

2.417 

1 

2431 

2.708 

1067 

2434 

2002 

11.65 

2006 

0.988 

2.090 

1258 

1542 

1264 

K»ty 

M 

3048 

0290 

0339 

0.099 

0.041 

100. 

am 

0.435 

10.14 

3240 

0479 

0.083 

0041 

0.086 

0064 

8.341 

0.052 

Motherland* 

(H) 

1827 

3.503 

3.047 

OB33 

0389 

8972 

i 

3905 

91.02 

7328 

4203 

0741 

0385 

0772 

0276 

56.93 

0467 

Norway 

(NKr) 

4724 

6.968 

7203 

2286 

0946 

2299 

2261 

10 

2331 

183.4 

1122 

1297 

0935 

1.977 

1.474 

1452 

1.195 

Portugal 

(Ea) 

20.18 

3248 

3348 

0981 

0406 

9804 

1299 

4290 

IOO 

8128 

4.7Z7 

0.814 

0401 

0248 

0632 

6225 

0.513 

Spain 

(Pin) 

24.83 

4.735 

4.119 

1207 

0499 

1214 

1.352 

5279 

1230 

100. 

3818 

1.001 

0.493 

1.043 

0.778 

76.96 

0.831 

Sweden 

(SKr) 

42.89 

0140 

7.081 

227S 

0858 

2087 

2224 

9275 

211.5 

171.9 

10 

1.722 

0848 

1.794 

1338 

1322 

1285 

Switzerland 

(SFr) 

24.79 

4.728 

4.113 

1205 

0499 

1212 

1250 

5271 

1222 

8025 

Rang 

1 

0493 

1-042 

0777 

76.85 

0630 

UK 

ft 

50.33 

9.597 

8.349 

2.446 

1.012 

2480 

2.740 

1070 

249.4 

202.7 

11.79 

2230 

1 

2.115 

1.577 

156.0 

1279 

Canada 

(CS) 

2360 

4.538 

3948 

1.157 

0478 

1183 

1296 

3059 

1172 

9384 

3574 

0260 

0473 

1 

0746 

73.76 

0605 

US 

ft 

31.92 

0088 

5294 

1251 

0242 

1660 

1.737 

3786 

1531 

1235 

7.475 

1287 

0634 

1341 

1 

98.97 

0811 

Japan 

(Y) 

3226 

0152 

5262 

1268 

0649 

1577 

1.758 

3859 

1692 

1292 

7268 

1201 

0841 

1366 

1.011 

IOO 

0220 

Ecu 


38.35 

7204 

8228 

1212 

0791 

1923 

2.142 

3388 

1952 

1582 

9218 

128? 

0.782 

1254 

1233 

122.0 

1 


Sep 30 

Ecu cen. 
rales 

Rate 

again* Ecu 

Change 
on day 

% +/- from 
can. rata 

Nattiertende 

2.19672 

2.151 IS 

-000049 

-2.07 

Belgium 

402123 

39.4S80 

*0.0037 

-1.78 

Ireland 

0808828 

0794241 

-0.000237 

-1.78 

Germany 

124904 

132045 

-000021 

-120 . 

France 

633083 

625435 

*000204 

024 

Denmark 

7.43679 

723412 

-000252 

121 

Portugal 

192254 

195.780 

• -0.045 

122 

Spain 

154250 

159.159 

+0028 

3.18 

NON ERM MEMBERS 




Greece 

284313 

292.827 

+0057 

1070 

Italy 

1793.19 

1931.88 

+097 

7.72 

UK 

0788749 

0.785444 

-0.000328 

-017 ■ 


LMftaEB 071-8089833 
«*S 11B { 4*2 1 Qb 
4*5 119 I 4*2 1 Or 


CabdoaiBB Bank Pfc 

8 SI MCxm E«m EMugt BT2 2TT 031 0MBE35 
HCX I 5*3 1B37E I -1 YMtly 

Cater Aten Ud 

20 BbdWi Lam London EC3VSDJ On-eaZDTO 

NCR 175 2*2 I 192 Mr 

R»wirao*(»+_ IA* - 4 jh tin 

ONragnt esuob* I 4 as -I 4*9 1 tan 

Chvtataare Bank UrafM 

1 PaemoOM Ran. EMM TDK 071-2484000 

£2*00-C19J9a ITS 2* I 3*0 MU 

£20*ao-C48*90 400 3*0 4*6 in 

ESO*aO^BM« 4*6 11* 4*1 Hb 

£100*00+ 4*0 4*1 4*7 tat 

35*00-848*90 3.00 225 8*4 UOi 

160*00-489*99 3L50 2JO 188 Hb 

31 00*00-8199*90 — ITS 2*1 182 Hb 

3200*00 + 400 100 4*7 H» 

MH tear rHMOMMMHn^lV IBM HMM 

QfdBHiala Baok Rexafla SOUiflon Ace 

BrpWnc a ntWMa. P MpBa6l2HL 041-2487070 

£10*05-940*99 [ 170 278) 1701 OB 

£G0*00-£2 48*90 3*0 2*5 I last Ob 

£230.000 and ow 1 400 3*8 I 4*0 1 Ob 

The CD-oporattw Book 

raaot300.SabmraaW.Lmc8 D34S2S2000 

TESSA ) 175 -I -Ivtany 

Mi a i - rare iMH n»r eM B u s es . 

AkBMmoM 1 4*o are I uni m» 


Portman Bidg Soc Presda Cheque Accouth 
Rmnwid ML eCrnamwbi. Sc*P 8800 883681 

taanoo- mo 4 .13 5*0 vany 

£30.000-09*90 8*0 ITS 3*0 VW 

rro*oo-£2 area 400 am 4jo vwny 

£10*00-£19*m 300 7*3 150 YMrty 

£2JOO-£9*re_ 2*0 1*9 I 2*0 MM* 

Raa Brottnra LUMMh 
AAM nnn^ WHl Loratoa KZM HU 071-0211158 
WkMHOMUMMl&S 193 538 Mm 

hBbMHer 9 Bm *nM 4J» 168 4*5 Hb 

PUP. bM84— Halt- 1 4.78 SM I 4*3 1 Ob 

Rani Bank of Soottaad pic Prerahan Ace 

47 £1 Anar** Sq. EtSnTuran B&TTE. mi -513 8302 

£80*00+ 178 2*1 I 180 Ob 

05*00 -£49*80 ISO 2*3 105 □» 

£10*00— £24*90 2.75 7*6 779 Ob 

£5*00— £9*90 200 1*0 I 202 <J» 

£2*00—24*09 1*0 1.13 I 1*1 OB 

Save ft ProspaiHotxjrt Hmnbag 

10-22 WcnmSTtentora RM1 XB 0800 282101 

CM Aeon* I 4.13 IM 421 DHr 

TESiARmd 1 Veer 0*0 - I 120 Mn 

TESSA WnMa 14*9 - I 6*0 MB 


SSoMHaMvEmtaSL PM 0212 744720 

MMCHXXMWsbrPka 1750 2*13 1*08 Ob 

DanendHUA £10000+ 1875 2*00 1812 Ob 

MMAESOOOO+ 4*00 3000 4*80 00 

t+MA £100000+ 41S 10»( 4.180 Ob 

TynH TESSA 4*76 - 4*85 Qb 

UntMOomUonTimtUd 
raBHB2.Hana.BM 007 OBI -447 2438 

CMHtkMCBeaMBnHMrt 

£1*00* I US 1*4 I 5*5 1 Or 

United That Bank Ud (totimh BUS 

1 SnatCmbariaAd PL London an H7A. on-2580004 
£10*00-90 ftey mflea. I 7*5 044 I 749 8-UB1 

£io.aoo-THd«aaaca_ I ioo 0*0 a.ie|6-aaa 
£25*00— 1 74* I 8*5 119 I —I iMrty 

1 Hewy Schroder Wagg S Co Ltd 

120 OwnoMK. 1UU ECVT4K 071-3828000 

SpacH ACC. 1 4*00 3*8] 4*7 1101 

£10*00 and BOOTS (4750 150 1 483 1 MSI 

Western Hint Wgb lotarest Chaqoa Ace 
Tie Monayeanva. Ptynaaei Pli 1SE 07S222C141 

£15*00+. 5*5 184 I 5*5 W 

£5*0Q-C14*08 500 175 5*0 to 

£1,000^4*89 1 475 158 I 4*4 I Qb 


£25*00-£ 49*09 
E10*00-£24*00 
£S*00-£9*00_ 


iDraapiMteteH 

..... I 5*6 4.17 

4*1 5*1 

431 521 

I 131 248 


■ D-MARK FUTURES (IMM) DM 12S.00Q per DM 


i pMM) Yen 12-5 per Yen ioo 



Open 

Latest 

Change 

High 

Low 

Est vol 

Open Im. 


Open 

Lores 

Change 

High 

Low 

Est vol 

Open Im. 

Dec 

02460 

06470 

+00003 

0.8470 

OS453 

26251 

71248 

Dec 

10204 

1-0222 

+03018 

1.0227 

13200 

13234 

44.745 

Mar 

0.6474 

02474 

. 

06474 

0.6474 

S34 

3254 

Mar 

1.0308 

1.0305 

+00020 

1.0308 

1.0305 

82 

2.728 

Jui 


06486 

• 

• 

■ 

100 

574 

Jun 

- 

1.8383 

- 

- 

- 

5 

447 


1.64 -10 

0-00 -22 


Greece Z04.513 292.827 +0057 10.70 -6.79 

Katy 1793.19 1931.68 +097 7.72 -4.22 

UK 0788749 0.785444 -0.000328 -017 ’ X3S 

EQicang*ratH»MayrfiaEiimp«anCo<nn — o n. CmwieMiM»aid aro M»lnBralatl»e«tran(ph. 
P M U M itra * ebanpH — tor Ecu: a poabhra ctenga danotaa a week aarenoy. D Hp a M abome Hie 
radu batw—n two apmed i tfM pareantag* dba iaua ba a — M l Mm nenH maffcar and Ecu cantrat lama 
Nr a amwey. and Sia mpbrian pMntetd peroarffln d a uM tl u n ot tha oarenqr’a mertat ate bam Ite 
Eeucararal raH 

(17/WB2} Stekno red ItaOan Lira auapendad from ERM. Ar*ntmara ratn (atari by the Rnan cH Tbnae. 
■ PWLAPBLPWA BE OPTIONS £31.250 (certs per pound) 


re 1 : 

jbH-Hmmi 

£30*00+ DT 437 128 442 6-401 

£3CL0a0-£24BflH 131 240 [ 134 6-Hb 

no*ao-c4«*re 5*0 230 ire e-«b 

(S0l>-£9*00 1 2*2 1*7 I 2*4lo-M* 

-1 p- m.i ni- 1 ■ bii Tsi o 1 Tm 


5*4 B-Mtl 
4*7 6-4101 
438 b-ani 
134 s-aan 


3*0 2*3 5*3 8-tan 

1*0 Z2S 3*2 8-Mm 

200 1*0 2*1 0-m 


B0TS5- Oh CtnbacbM im ol kiHMI MkHM. lH 
cebn coil Di tat daduenon or Bade me arena Ml 
H at ton d kam PMU Mtv OatDna ** dadocaon ol 
bmk rani tacama ox faaaa C4fc tore Ha tum Mttd to 
aw secant at namn bi g of Hrat pad oOh Dmi 
oa a (av. ’OmwiW And W. H Cc Frapnaci 
■ DMOi asanat ■ cmaH n iba kcbb4 


■ SWISS FRANC FUT1«ES (IMM) SFr T25.000 par SFr 

Doc 0.7802 0.7806 - 0.7808 C 

Mar - 0 7830 - - C 

Jim - 0.7863 


WORLD INTEREST RATES 


MONEY RATES 

September 30 Over One Three Six One Lomtx Dfs. Repo 

rv ght month mtha ifflha year intar. rate reta 

Belgium 4T« 4fl 5S 6* 7.40 4.50 

week ago dT* IJ W 5ii « 7.40 4.50 

France Sfi 5* 54b 5% 6i 5.00 - 6.75 

ago 5Vi 54 5fl 64 &00 - 6.75 

Qarmam/ 415 4.95 5.18 5.23 5.63 6.00 4.50 465 

^ZTago 4.52 455 5J5 S23 iffl UO 4.S0 4X 

Inland 4H Si* 64 64 7H - - 835 

week boo 44 5% 6J 64 7« - - £25 

toT* 84 814 84 0 98 - 7.50 &20 

^Lu oao 84 8V4 84 S'A 104 - 7J0 8^5 

f tet ha rtu da 4.84 5.00 5.22 5.36 5.75 - 5J5 

week ano 4.84 5^)0 5.12 5.35 5.74 - 525 

ovriOMTiand 3 ? b 3Q 4tt 4% 4K 6.62S 3S0 

“ISTS >!> M <* « 2 ““ “ - 

US 4*> 48 5« 5Q 84 4.00 

week ego 4 B 48 54 «k 84 - 4.00 

btraan 2!a 2»b 2!4 24 2M - 1.75 

^k wo 21» 2^b 214 24 «k ~ \ ™ D_ 

1 S 3 5 : : : 

-rs - -- s ass : ; : 

a ^ D * :»»**--- 

EURO CURRENCY INTEREST RATES 

g 7 nT JB. a A S - 

a-a a:x s.-s a:# a s 

ft |J *:S 

« S=L a : I : S Si i A : 9. A : & Ji ■' S. 

a a fj> « S:S Ii:3 

” a! a:a a=a 

nw f -.1? 2:S k-K «■!! «■* 

w*" J ‘ S . 2/, 2ft - 2>4 2*8 - 2ft 2‘z - 2ft ^ 

SLiSSma A 8ft - 3ft 3ft ■ 3ft 4-3% 4ft - 4ft 

Asian SSmg _ J*. ,* rwlnr mi Y«v «honr: mo «»«•■ 


, FUTURES (IMM) £62.500 per E 


11263 

34.629 

Dec 

12770 

127B2 

*0.0008 

13790 

13764 

6284 

32,674 

26 

887 

Mar 

12740 

13758 

*0.0012 

13758 

13740 

8 

271 

10 

67 

Jun 

- 

13890 

- 

- 

- 

1 

8 


Strike 

Price 

Oct 

- CALLS - 
Nov 

Dec 

Oct 

— PUTS — 
Nov 

Dec 

1200 

7.68 

728 

720 

- 

034 

028 

1225 

524 

528 

5.76 

005 

0.19 

088 

1350 

2.91 

338 

324 

014 

085 

121 

1375 

1.12 

1.82 

223 

079 

126 

222 

1200 

025 

023 

1.49 

2.42 

• 2.99 

3.70 

1225 

- 

029 

020 

421 

424 

5.49 

Previous day's vol, Cate n/a Pua HJA . Piw. asy-i open w.. Cate WA Pu» NIA 




■ THREE MONTH EUROMAMC FUTURES (UFFET DMIm points of 100% 



Open 

San price 

Change 

High 

LOW 

Est wl 

Open im. 

Dec 

94.70 

94.67 

-031 

94.71 

9424 

38329 

190444 

Mar 

9430 

9427 

-0.01 

9420 

9422 

38810 

170135 

Jun 

93.90 

9324 

-034 

9320 

93.78 

25558 

106183 

Sep 

9326 

' 93.48 

•006 

9336 

9344 

9785 

89278 


INTEREST 


LONDON MONEY RATES 

Sep 30 Over- 7 days Ona 

rigid notice morttl 


7 days Ona Three Six One 

notice month months months y ear 


Commodities on the move - 
lime to speculate? 

Call Philip O’Neill 

ia: 071-329 3333 or Fax 071-329 3919 


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■mSs B erkeley futu 

BOOM 2ft DOVER STKRRT. U) 


I EUROURA DtTJtATE I 


i (UFFE) LTOOOm paints af 1009b 



Open 

Sett price 

Change 

High 

Low 

Em. vol 

Open ire 

Dec 

9020 

9078 

-0.12 

9020 

9078 

5489 

31403 

Mar 

9020 

9006 

-008 

9020 

8035 

3091 

17387 

Jun 

9838 

9931 

•0.09 

89.63 

8930 

1032 

16191 

Sap 

89.17 

89.13 

-0.12 

8928 

89.13 

517 

15059 

■ THHHB 

■OHTH 

EURO suns 

8 FRANC FUTUimS (UFFE) SFnm pointe Of 100% 


Open 

Sett price 

Change 

High 

Low 

EM. vol 

Open inL 

Dec 

05.64 

95.64 

+031 

95.85 

9520 

4087 

24054 

Mar 

9524 

9527 

*003 

9527 

9520 

893 

11783 

Jun 

94.88 

94.88 

-001 

9420 

9429 

211 

8561 

Sep 

94.60 

9439 

-0.01 

94.60 

9439 

45 

981 


1 MONTH RCU I 


Dec 93.64 S3 

Mar 93.06 93 

Jun 9 2S8 92 

Sep 92.11 92 

■ UFFE tuturaa bedad on APT 


l (UFFQ Eculm potnb Of 1 00% 


baertanlc Stotea 6 - 4*8 ft ■ 5 5ft - 8ft 5« - 6» 6ft - 6ft ft - 7% 

Starling CDs - - 5ft - 5£ 5jJ - 5g 6ft -ft 7ft - 7ft 

Treaauy BSs - - 5ft - 5* 5» - ft 

Bank Btfs - - 5ft -5ft ft • 5fi ft-ft 

Local authorty daps. 4j| - 4}J 5ft - Sft 5, T , - 5ft 5U - Sil Bfl -6ft 7ft - Tft 

Dacourt Market daps ft - 4% ft - 5 .... 

UK clearing tank base fendhg rate ft par cent from September 12, 1894 

Up to 1 1-3 3-6 B-g 9-12 

worth mown inortho » monlhi uiuirtlw 

Certs rt Tax dap. (CI00.00D) 1*2 4 ft ft ft 

Cana or Th dee- undar Cl 00*00 M OapoMs •ffluMur for caab Vpc. 

Are. Mndar rate of dHrem MTItec. BCOD Rad raa Sap. Expon Rnrmea. Mate up (My Sep 30. 
1904. Amad raa tor period Oct 28, 1904 to Nov 21 1904, Schamaa D 8 ■ 7-OSpc. nateanee nre tor 
partod Sap 1. 1604 ® Sap 30, 1904. Scriamn IV 1 V S.73SPC. Rnanca Houaa Boae Raa too (ram Oa 
1. 1994 

■ THREE liONTR 8TRRUHG FUTU MB (UFFE) 000,000 potnts of 100% 


PRIVATE CLIENTS 
WELCOME 


38 DOVER STREET, LONDON W1X 8RB 
TEL: 071 629 US3 FAX: 071 495 0022 


Open 

Sett price 

Change 

High 

Low 

Eat vol 

Open InL 

93.64 

93.65 

*001 

33.66 

9338 

983 

7306 

93-06 

83.08 

- 

9338 

9331 

795 

5788 

9239 

9237 

-032 

9220 

82-48 

576 

2638 

92.11 

92.15 

•032 

92.15 

6238 

140 

996 


Open 

Sett price 

Change 

ugh 

Low 

Eat voi 

Open ire 

9324 

8320 

-002 

932B 

93.17 

27814 

183359 

9225 

9220 

-aoa 

9228 

9227 

16171 

83105 

91.68 

9127 

*0.01 

91.72 

9139 


52487 

9123 

9120 

-002 

9127 

91.15 

3850 

53186 


Traded on AFT. Al Open rearm nga. are tor pnHow dey. 

■ SHORT STBtLiHG OPTIONS (UFFE) 2500^)00 points id 100% 


■ THREE MONTH EURODOLLAR OMM) Sim potrrts Of 100% 


ft’ft svft «'ft ft-ft 

SSm 5,*.-4H 5ft -4{1 6-4% g-J« 

fwtdifnnc ft-ft 5u'6A 5ft - 5ft JJ 10 } . nh 

POrtUBU ^^ : S' t* S-S 7ft - Tft 8-7% 8h-ft 

^ i;IS JJ.8 5B-511 A-6A 

STfS 6 5-| g-Sft 5»-5H 

M “ fl ‘ jra i'.’A It - 2ft 2ft -2*4 2J| - 2ft 2*2- 2/. 

. 

-— c«n price Chang* Man Low EoL wl 

0pCn 9409 94.04 19,580 

Obc W 08 08 _ 93.64 3X55 11.562 

Mar 93 59 93.b+ _ 3334 93.16 6,626 

“ SS Ss ■ E " J * H 

s SS SS j- 8388 8369 '2 

s. “» 0 


=9- *2 
1 ou rev o» 


4{3 • Ml 
5^b - ft 
4*i-4a 
5ft • 4il 
5i* ‘ 6A 
ft • 9*9 
7ft - 7*8 

5*4 -ft 
4 -ft 

5-411 
4*k-ft 
8*fl -rt 

2ft - 2ft 

ft - 2*z 

US Deter and 1 


Threa Six 
month* months 

ft -ft SH-ffl 
ft ■ ft 7H - ft 


5ft -5ft 5ft - 5ft 
ft -ft ft -5^4 
6S-S* ft -ft 
1ft - 1ft 1ft - «3| 
8-7% 8*2 - ft 

ft - ft - 6ft 

4»| - 4 4A - 4 A 

SA -SA sil - 
ft -ft 5^i -ft 

Bk - ft 813 - 811 

2*| - 2u 2*2 - 2ia 

3ft ■ 3A 4 - 3% 

: nn> days’ note*. 


One 

yw 

ft-ft 
7H -ft 
ft-ft 
ft-ft 
M-6A 
10% - 1ft 

ft - 9 
7 * 2 - 7 % 
4%- 4% 
eft -BA 

ft-ft 

911 - 9 ft 

2ft -ft 

4A - 4 ft 



Open 

Latest 

Change 

High 

Low 

Esl voi 

Open InL 

Dee 

9438 

9436 

-002 

9438 

94.05 

183,192 

522,445 

Mar 

9327 

83.65 

-0.03 

9329 

93.65 

153.743 

421288 

Jun 

■ US Tl 

9327 

VBASURT Bl 

9326 

LLfUTUn 

•0.02 

BS OMM) S 

9327 

im per TOt 

9325 

W 

92,854 

295207 

Dee 

94.62 

94.62 

-031 

9423 

94.61 

3310 

19,484 

Mar 

. 

9420 

- 

- 

- 

713 

9237 

Jun 

- 

9321 

- 

- 

9321 

25 

2354 


Strfce 

Price 

Dec 

- CALLS - 
Mar 

Jun 

Dec 

— PUTS — 
Mar 

Jun 

9900 

039 

013 

017 

0.19 

0.83 

120 

9325 

024 

038 

o.n 

029 

1.03 

128 

9350 

0.12 

034 

038 

0.42 

124 

131 


Est. VOL ML Cte 9099 Pina 5752. Pieriwa «/« open bit. Cete »1W Pua> 1796*1 


AB Open rearm fire, are to pronoua day 
■ BUROMAHK 0j»T10H8 (LUTE) DMlm points of 10016 


BASE LENDING RATES 


Snare 

Price 

Oct 

Nov 

CALLS - 
Dec 

Mar 

Oct 

Nov 

PUTS 

Dec 

Mar 

Adam & Company. 

% 

.— 5J9 

% 

Dincan Lawrts 575 

9450 

0.19 

021 

024 

015 

032 

004 

007 

038 

Afiad Trust Bank .... 

525 

ExotBT Bank LMted - 8.75 

9475 

002 

036 

D.10 

037 

010 

0.14 

018 

055 

AJBBank 

... 5.75 

Biandfli& Gen Bank- 62 

9500 

0 

031 

033 

003 

033 

034 

038 

076 

•Henry AriS&actw.., 

— 5,75 

•Robert Flaming ft Co _ 575 


94 09 94.04 19,560 

33,64 9355 11.562 

93.24 93.1 B 6,626 

92.95 92.82 2^1* 


Open Ini. 
60.141 
33^19 
24.627 
19,873 


Open Ire. 
2121 
1425 
274 
52 


Em. voL totaL Cate 4317 Pite 827*. Pravtout onrs open bit. Cate TBH77 Pin 156804 
■ EURO «m»FRJUICORnOI9»(m=FQ SFr im points oMOOM 

Strike CALLS PUTS “ 

Pries Dec Mar Jun Dec Mar Jun 

9560 0.19 0.14 0.08 0J)5 0^7 0.70 

9575 0.06 a 07 004 017 0.55 0.91 

0600 0.02 004 0.Q2 038 077 1.14 

Eat wL tot*. Cdb 0 Pua a Prwoua day's open hb Cate 1070 Pm 015 


Sark of Bareds — 6.75 

Banco BSao vtreaya. 075 

8si* cl Cyprus 5.73 

3*1* of Ireland 5J8 

Bank of Mb S .75 

Bank cl Sccdand 5.75 

Baidas Bank 575 

Bit Bk of Mid East 525 

•SrOHi SHpiay &Co Ud JKG 
CLBankNaderiend... 6.75 

csasrtNA -....2.75 

Oydesdae Bark 5.75 

Tha C&cparateo Bank. 6.^ 

Coutts&Co 5.75 

Cradi Lyonnab 5.75 

Oypnfi Poptear Bark -5.75 


Gkobank... - 5.75 

aOurrassHhon 6.76 

H8DK) Bank AG 21Mh . S75 

Ha mb roa Bank 5.75 

Heritage & Gen bitfBk. 5.75 

•HBSanuL 5.75 

(XHearsLCo 5.75 

HOrt#<ongBShangfiA 525 

Aim Hodga Bank 5.75 

•LaopaU Joseph & Sens 575 

UoydBBank -5.75 

Meghiaj Bsik Lkf 5.75 

UdandBank 5.75 

-MoimiBanMng 6 

NreWasarkwar 5.75 

•Raa Bream 5.75 


"RotOu^wQUBrentea 
Cotporrekxi UmBad to no 
longer authorised a* 
abankkighsikiAin. 8 
Royal Bk of Sootend- 6.75 
•Smlh LWBmsn Secs . 6.75 

TSB 5.75 

OUntodBkofKMeB-. 5.75 
Unfey Trust Baik Pie _ 5.75 

WHUmThOt 5.75 

WHtosa^y LfikftM _ «. 525 
Yoricstfra Sark -575 


• Member* ol London 
Invastmant Banking 
Assodafcn 
” kiadmMsrsion 


PRESS FOR GOLD - 0839 800 411 

Pla) now lor Gold and SOver prices, with 60 second updates 24 houn a day. 
For details oi on- full range of Ruanda) information services, caD 071-895 MML 
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■■i Futures Call^^H 


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12 


FINANCIAL TIMES WEEKEND OCTOBER 1/OCTOBER 2 W4 


9 


LONDON STOCK EXCHANGES Dealings 


Details of business done shown below have been taken with consent 
from last Thursday's Stock Exchange Official List and slxntid not be 
reproduced without permission. 

Details relate to those securities not included In the FT Share In f ormation 
Services. 

Unless otherwise I n dicated prices are in pence. The prices ere those at 
which t he b usiness was done in the 24 hours up to S pm on Thursday and 
settled throuj^i the Stock Exchange Tafisman system, they are not In order of 
axacutlon txn in ascending order which denotes the day's highest and lowest 
dealings. 

For those securities In which no busmess was recorded In Thursday's 
Official List the latest recorded business In tha four previous days is given 
with the relevant date. 

Rule 4 - 2 (a) stocks are not regulated by the Internat i onal Stock Exchange 
of the United Kingdom and the Republq of Ireland Ltd. 

X Bargains at special prices. <t> Bargains done the previous day. 

Marks A Spencer Fhtanoa PUD 7%% Gtd Nta 
1998 (Br C Vai) - E34fl <26Se94) 

National & Prortndte Sdg Sodtey Hrg Rata 
Nts TJ90 IBrnOOOO&IOOOOO) - SESL85 
Notional Waumteter Bank PLC 11%% Lhxl- 
Subres CioootCnv to PrQReg - non % 
Nation* Wastmtaster Bonk PLC 11%% Und- 
SubNts nooofc&v to PrflBr - CiOi 


British Funds, etc 


Treasury 13%% Stk Smarm - £121?* 
PBS«B4] 

Exmqucr 10>2«i Stk 2005 - n 10Q 

aest&s) 

Corporation and County 
Stocks 

Brtetolffaty ol) Ilia W Bed Stk 2008 - 

CSSefri) 

Kenatngton & CMsoaptoyte Borcug>«11.15% 
BU S» ZOOS . £107.3 (27a®!) 

LwwofCrtv oft 13%% Red Stk 2006 - £123% 
(268e94| 

ManchastariCfiy al) 118% Red 8tk 2007 - 
£ 111 % 

Manchester Cotp 1891 3% Rod Stk 1941 (or 

after) - £29 

BaaJnfi Corps WSlk 19S2for after)- £31 
(275*94) 

Reacfing Carp 3%% stk 197B(ar after) - £33 
R7SaB4) 

UK Public Boards 

Motropofllan Water Metropolitan Water 3% A 
Stk 63/2003 - Efi4 <2BSe94) 

Part of London Authority 3% Port of London 
A Stk 29/99 - £80 (Z3SsS4) 

Foreign Stocks, Bonds, etc- 
(coupons payable in London) 

Abbey National Staring Capital PLCa%* 
Suborn Gtd Bds 2004{B«£Van4 - £82.0325 


Abbey National Storing Capital PLC10V* 
Subaru Gtd Bos £002 (Br C VarJ - £102*2 
(2BS094) 

Abbey National Steritag Capita PLC1Q%?f 
Sutxxd Old Bds 2023 (Br £ Van - £1008 
*2 

Abbey Notional Tnsouy Servs PLC 6% Gtd 
Nts 1999(Bit1 000,10000. 100000) - £87% 
Abbey National Treasury Sena PLC 7%% 

Gtd Nts 1998 (Br £ Var) - E93 7 * (28SC34) 
Abbey Nadond Tnusuy Sava PLC B<<6 Old 
Bds 2003 (Br £ Vai) - £90?* % 9.2 
P8S eW) 

Acer incorporated 4% Boa 2001 [Bi$1 0000) - 
5243 

BAA PLC 11%% Bds 2016 (Br 
£100008100000) - Clio,*, PBSeB4) 

BP Amartcu Inc B%% Gtd Nts 1998 (fr £ 

Vo) - £100*2 (235*94) 

Bank of Greece g%% Bds 2003 (Br C Vat) - 
£89%£3S*94) 

Barclays Bank PLC 0% Perm Int Bearing 
Copfcti Bdti{Br£ Vta) - £83 (26SeS4) 
Bardayn Bank PLC 9875% Undated Subord 
Nts- £93.1 (38SeB4) 

Barclays Bark PLC 10?*% Sen Sub Bds 
1997(Br£100Q&10000) - £102% (27S*04) 
Barings PLC 9%% Perp Subord Nta BrfVart- 
oua) - £81% (Z7SaB4) 

Blue Ode industries PLC 10%% Bds 2013 
{BriSOOO&IOCXXW - CIO* .55 (Z8Se94) 

Bristol & west Butting Society 10% % 

Subord Bda 2018 (Br C Var) • £99% 

Brrtistt Aerospace PLC 11%% Bds 2003 (Br 
£1000810004- £111% 

Bristol Akways PLC 9*2% Nts 
1997(BrC1 000810000 - £101 A 283094} 
Brittoi Airways PLC 10%% Bds 
2008(Br£10008iaOOa) - £105% P6Se94) 
British Gas PLC 7%% Nts 1997 (Br£ Var) - 
E97% 

British Gas PIC 7%% 8da 2000 (Br £ Va) - 
£93% % (Z3Se94) 

Brtlrih Gas PLC 10%% Bda 2001 (Br 
£1000,100008100000) - £105% (23S«94) 
Brittoi Gas PLC B%% Bds 2003 (Br £Va) - 
C92il (286404) 

Brittoi Gas PLC 8%M Bda 2008 (Br £ Var) - 
casA 

British Gas PLC 7**% Bds 
2044(Br£1000.10000, 1000000) - £74% 
(27SW94) 

British Teiarammtnicalkins PLC Zero Cpn 
Bds 20000^1000810000) - £81% 

(275094) 

Brittoi Tefaconkn u nlcattans PLC 7%% Bds 
2003 (Br £ Vtn) - £86% 7/* 

Brittoi Tolecommirtcaflora PLC 8%% Bda 
2020{Bf£Vara) - £93% 

Ekjrmah Castroi ©WttalUorsey) Ld 9%% Cnv 
Cap Bds 2006 (Reg Cl 000) - £14553 6 .43 
% 7% 

Brans Rilp Treasury {Europe) BV 55% 
GtdSubordCnvBds2tXM(RegMUtSS00q)- 
388% 88*2 (27Se94) 

CRH Capital 14 5%% Cnv Cap Bds 
2005(045004 . 5119% (289494) 
DenmarkCKtngdomol) 6%% Nts 1998 (Br E 
Vai) • £92% (273*94) 

Oeota France N.V. 7%% Gtd Bda 2003 (Br C 
Var) - £84.7 

ECC Group PLC 8*2% Cnv Bda 
2009{Br£100QK1000a) - £95% (27S494) 

Bf Enterprise Finance PLC 8%H Gtd Exch 
Bds 2008 Pag CSOOO) - E97 % % 8 
(28Se94) 

Fa Eastern Daportmant Stores Ld 3% Bda 
2001 (Beg Integral mum Si 000) - S97 
Far Easton Tenure Ld 4% Bds 
2006181510000) -S1 10% 

FWandpepubBc oft 0%% Nts 1997 (Bi€ Var) 

- £102 (27Sa94) 

FWandTRopuMto oO 10%% BOS 1998 - 
£103%i 

Forte PLC 9%H Bds 2003 (Br £ Var) ■ £92% 
(23S494) 

Fk4* Bank Ld 1%% Cnv Bds 2002(445000) - 
5107 

HSBC HokUnga PLC 9%% Subord Bda 2018 
(Br E Var) ■ £98 (27Se94) 

Hints* BuOdng Soctoty 6%H Bds 2004 
(BrCI 000. 10000.100000) - £90% (28549*1 
HaDtn Bufldng Society 7%% Nta 1998 (Br E 
Vat - £95% (27S494) 

Halifax Starting Society 8%% Nta 
1999(Br£Voja) - C98%4> 

Hteltax Btadtag Society 10%% Nts 
1997(Br£1 0008100001 - CIO) 1 * (27Se94) 
Hammerson Property Inv 8 Dev Carp 10%% 
Bds 2013 (Bt£lOO0081(naCKQ - E99JJ 
100.15 C8S«64] 

Hanson PLC 9%% Cnv Subord 2006 (Br 
CVar) - £1(0% 4 (28Se94| 

Hanson Trust PLC 10% Bds 2006 (BriSOOO) ' 
-£98% % UB 

Hickson Capital Ld 7% Cnv Cap Bds 2004 
(Reg) ■ 131 

Hickson Capital Ld 7% Cnv Cap Bds 2004 
(BrCI 00081 OtJOO) - £129% (27S«94) 

Imperial Ctwr*ati Industries PLC9%% Bds 
2OOS(0r£UMO81OOOa) - IS9% *2 
Inter -American Development Bonk 11%% 

Bds 1BS5(Br E5000) - £102% p7SeB4) 
Memobanal Bank for Roc 8 Dev Bds 
2007 (BriSOOO) - £100 
International Bank lor Rec 8 Dev 10%% Nts 
1999 (BriSOOO) - £103% C2BSo94) 
naly(RepubBe at) 1D%% Bda 2014 
(BtnOOOO&SQOOOl - £10<% A G7SeW) 
Japan Devetapment Bank 7% Gtd Bds 2000 
(Br C Van - £90% CBSeM 
Japan Pin Co*p for MmKlpal EnL 6%% Osd 
Bds 2O04(Br£l0OO & 1000(3 - £91 A 


Karate Electric Power Co ho 7%% Nta 1998 
®r £ Var) - £S4J85 % (27Se94) 

Kyushu Bsctric Power Co Etc 8% Nta 1997 
(Br £ Vat) ■ C97% (26Se94) 

Lruflxoke Group Ftnonce(Jereey)Ld 9% Cm 
Cap Bda 2005 {BtCSOOO&l 00000) - £95% 
£8Sa04) 

Land SecuWaa PLC 8%% Cnv Bds 
2XH£Br£1000) - CSS 

Land SocwMes PLC fl%% Cnv Bds 2004 
(BrCSD00450000 - C1t»% PSSoM 
Leeds Ite rmanent BuMng Society 7%K Nts 
1997(BriVar) - £06% 

Lawts (John) PLC 10%% Bds 1998 (Br 
Cl 000081 00000) - £103% PTSe&l) . 

Lloyds Bank PUD 7%«t Subord Bds 
2(»’43r£Varkxal - £84 127Se3*l . 

Lloyds Bank PLC B%% Subord Bds 2023 (Br 
£ Vart - £95% 

Lloyds Bank PLC 11%% Subord Serial Nts 
>998(Br£100QO) - £103% (23Se94) 

London BecWaty PLC 8% Bds 2003 (Br £ 
Vat) - £90% C27Se94) 

MEPC PLC 10%% Bds 
2003(Br£1 000810000) - £99,1 CBSe94) 


Nattonwide BuMng Society Zero Cpn Nts 
1998 (Br £ Vte) - C7D>a (Z7Se94 
Northumbrian Water Group PLC 9%% Bds 
2002 (Br £ Vai) - £97%<f> 

Pacfflc Electric WkeSCasie Co Ld 3%% Bds 
2D01(BrS10000) - 5115% 118*2 117% 
(285494) 

PenlnsUar 8 Ortante Stean Nov Co 1 1 %% 
Bds 2014 (Bi£1 00008100000) - £109% 
C7Se94) 

RTZ Canada Inc 7%% Gtd Bds 
1998(Br£5000i1 00000) - £92.8375 
(27S-J94) 

Rerflmd Copttd PLC 7%% Cm Bds 

2oaaa£iooo&iooaa) - ess % 

RatfacMds Confriuatkm f=tn(CJ]LjdB% Plerp 

Sutted Gtd Nts (Brevtekxto - £79 % 

Royal Bank or Scotland PLC 6%« Bds 
2004(BrCVar3) - E80d (28&e94) 

Royal Insurance todgs PLC 9%% Stowid 
Bds 2003 (Br E Var) - £95% 

SkaxSa Capital AB 1 1% Gtd Nts 
1996(Bi£T0008&10000) - £103% A 
SocMs Genande 7 JI75% Perp Subord Nts 
(Br £ Var) - £84JSS (27Se94) 

Tarmac France perssy) Ld 9%% Cnv Cap 
Bds 2008 (Rag £100Q) - £96 
Tarmac Finance (Jersey) Ld 9%% Cnv Cap 
Bds 3006(Br £5000850000) - £98% 
(27Se94) 

Tosco PLC 8%% Bds 2003(Br£VlBis](FyPd1 - 
E93% (27SaB4) 

Tosco Capital Ld 9% Cm Cap Bds 2005(Reg 
£1) - £115% % 8 % 

Tosco Capital Ld 9% Cm Cap Bds 
2005(Bi£5Q00810000) - £112% (26SeS4) 
Thames Water UtOTos Hnanoa PLC 10%% 
Gtd Bds 2001 - C103U Q p6Se94) 

Tokyo Bsctric POmr Co Inc 7%% Nts 1938 
(Br £ Var] - E5M-8 

Toyota Motor Corporation 5825% Bds 1998 
(BrS VarJ - 384JS (27£e04) 

Treasury Corporation of Victoria 8%% 'Did 
Bds 2003 (BrE Ver) - £94% (Z7So94) 

Tung Ho Steel enterprise Carp 4% Bds 
2001(8410000) - 5112% (23SeB4) 
TiikeylRepirac of) 9% Bds 2003 (Br CVar) - 
089% 70% (23S4B4) 

U-Ung Mstna Transport Corporation 1 %% 
Bds 2001 (Reg ki Mult SI 000) - 382 
(27S494) 

Volvo Group Flranoe Sweden AB. 11% Gtd 
Nts 1995 (BrfSXVbr) - SKI 00% 100% 
(23Se8*) 

Corporacun Amflna De Famento 5100m 
8%% Bds 14/10/90 - 591% 92% (ZTSeM) 
Landeskredtbank Baden-Wu r ttsmbeig 
SC25m 8.625% Nta 22/12/97 - SCI 0055 
101% C7SSB4) 

National Westminster Bank PLC 8%% Nts 
1997 (Br SA1 00081000(9 - SA87 97% 
SwedenfKIrndam erl) £80001 7%% Nts 3/12/ 
07 - £90 \ % 

Swoden(Klngdom of) £2S0m 7% Inabumods 
23/12/98 - £92% 0BS494) 

SwedenOOngdom oi) £350m 7%% Bds 28 m 
2000 - £92 

Sterling Issues by Oversees 
Borrowers 

AitoraUatCommamwalth ofi 9%% Ln S8c 
2C12(Beg) - £98% C7Sc34) 

Bectridte de Franca 12%% Qd Ln Stk 
2008(Re£j - £122 (286e94) 

Empean Investment Bank 9% In 38(2001 
(R«8-E99%% 

Eudpean bnrestmant Bank B% Ln Stk 2001 
(etSOOO) - £99% 08SeS4) 

Eurepeen tnvesonent Bank B%% Ui Stk 

2009 - £102% (268494 

European knusbnunt Bank 10%% Ln Stk 
200J(Rag) - £107% 

European Inweatment Bank 10%% Ln Stk 
2004(Br ESOOQ - £10^} 31625 (23S«34) 
European Investment Bank 11% Ln Stk 
3002(RaB) - £109% P6Se94) 

GbraKar (Government oQ 11%% Ln Stk 2005 
(Hog) ■ £113 (27Se94) 

HydrcKJuebac 12.75% Ln Stk 2015 - £128.7 

IcelandIRepuHc ot) 14%% Ln Stk 2018 - 
£137% (Z7SaB4) 

tatenutkate Bank tor Roc 8 Dav 9%% Ln 
Stk 20KXRag)- £10X45% 
totom a norto Borti tar Hoc 8 Dav 11£% Ln 
Stk 2003- £113 % % 

Ireland 12%% Lit Stk 2008(800) - £122 
(289484) 

NmaScoflaflVovlncaol) 11%% Ln Stk 2019 
■ £117325% 

Portugal (Rep oft 9% Ln Stk 201B(Rea) - 
£98.1375 A *2 (Z7S«S4) 

Pmvlnce da Quebec 12%N Ln Stk 2020 - 
£133-076 % 

Listed Companles(exduding 
Investment Trusts) 

ASH Capital RnancoWsraeyJLri 9*2% Cm 
Cap Bds 2008 (Rag Unite lOOp) - £7448 
% .71 % 

Aetna Malaysian Growth Fuid(Cayinari)Ld 
Ord S0JJ1 - $14 (28SaB4) 

Alaaander 8 Alexondv Serrices ra Sha c* 
Class C Com Stk 51 - 519 (26S«B4) 
Ataandare Hdgs PLC 'ATRsLVJOnJ lOp - 
20 

Alex on Group PLC 5% Cun Pit £1 ■ 48 
Alemn Group PLC &2Sp (Nat) Cm Cum Rad 
PrMOp ■ 50 % 1% 2 
Ailed Damea; PLC ADH (1:1) • 583 
Allied Dotnecq PLC 7%W Cum Pri Cl - 77 
ABtod Dotnecq PLC B%% Uns Ln Stk - £82 
(28S494) 

Ailed Domecq PLC 7%% Uns Ln Stk - £72 
E8Se94) 

Anted Dotnecq PLC 7%« Lins Ln Stk 93S8 - 
£93*2 4 

AHed-Lyons Ftnanetol Services PLC8%% 
GMCnvSuboidBds200a RegMuBCIOOO - 
£107 % i28Se94) 

AHed-Lyons Hnancto Services PLC8%% Gtt) 
Cm Subord Bda 200Bfl9r £ War) - £104% 
104% 105 

AMs PLC 5£H Cm Cum Non-VIg Red Pri 
£1 ■ 63 

American Brads Inc Sha of Com Stk SX12S 
- £22% 

Andrews Sykes Group PLC Cm Pri 50p ■ 40 
40 % 1% 

Anglian Water PLC 6**% Index -Untied LnSak 
2008(6^576%) - £132% 

Anglo-Eastern Ptantanona PLC Warronts to 
sub tor Ord - 22 (2BSe94) 

Angto-Esstem Ptantodons PLC 12%% Uns 
Ln Slk BSjBQ - £102 (28S494) 

Angtowul Ld N Ord ROJXXh - £18.45 
CTSetel 

Attwooda PLC ADR (5:1) - 9924964 
AttWDOda (Finance) NV 8*jp Gtd Red Cnv Pit 
5p - 90 

Automated SecuitytHIdgs) PLC 8% Cm Cum 
Red PrICI - S56 

BAT industries PLC ADR (£11 - Sl3% 

BET PLC ADH (4:1) - $6.8247 
BET PLC 5% Perp Deb Slk ■ £49 
BM Group PLC 4.6p (N at) Cm Cum Red Pri 
20p - 87% pSSeBd) 

BOC Group PLC 3£% Cum 2nd WEI - 55 
BGC Group PLC 12%% Uhs Ln Sdc 2012/17 
-£121% D8Se94) 

BTP PLC 73p(No8 Cm Cum Red PrMOp - 
187 (28Se94) 

STR PLC ADH (4:1) - 520% .18 
Bomptan Property Group Ld 7%% Uns Ln 
StMB1/96) - £80 (23Se»>) 

Bonk ol MamfiGcmmor 5 Co of) Units NCR 
Stk Sra A £1 8 £9 Ltaukfcnton - £11% 
(2GS494) 

Bank of iralandtGovemor 8 Co of) Units NCP 
Stk SrsA kClOkEB Uqufoalan - El 06 
(28S494) 

Banner Homes Group PLC Ord lOn - 128 
Barclays PLC ADR (4:1) - £2?-5fl S 35*2 % 
Bodays Bank PLC 12% Uns Cap Ln Stk 

2010 -£116% 

Bwdays Bank PLC 16% Uns Cap Ln Slk 
2002/07 - £130*4$ 


FT-SE ACTUARIES INDICES 

The FT-SE 100, FT-SE Mid 250 and FT-SE Actuaries 350 Indices and the 
FT-SE Actuaries Industry Baskets are calculated by The International 
Stock Exchange of the United Kingdom and Republic of Ireland Limited. 
G The International Stock Exchange of the United Kingdom and Republic 
of Ireland Limited 1994. AB rights reserved. 

The FT-SE Actuaries All-Share Index Is calculated by The Faianetal 
Times Limited in conjunction with the Institute of Actuaries and the 
Faculty of Actuaries. G The Financial Times Limited 1994. All lights 
reserved. 

The FT-SE 100, FT-SE Mid 250 and FT-SE Actuaries 350 indices, the 
FT-SE Actuaries industry Baskets and the FT-SE Actuaries AB-Share 
Index are members of the FT-SE Actuaries Share Indices series which 
are calculated in accordance with e standard set of ground rules 
established by The Financial Times Limited and London Stock Exchange 
in conjunction with the Institute of Actuaries and the Faculty of Actuaries. 

"FT-SE* and “Footsie* are John trade marks and service maria of the 
London stock Exchange and The Financial Tfanes Limited. 


Baraon Group PLC 725p (Not) Cm Ftad Pri 
25p - 90 (fBSaW) 

Banian Group PLC &B5H Cun Prt £1 -44 
Barhg Ctvysais Find Ld Wte to Sub tar CM 
- S3% pi«fr ra) 

Barings PLC B% Cum 2nd Pri £1 -96% 
Borings PLC S%% Non-Cure Pri £1 - 112% 
(27SaS4) 

D en uito ruptore tl u n Ld Ord H0.01 - 135 
R8Se94) 

Bare 6 Waiaos Arnold That HLC Old 2Ep - 
580 

Boss PLC ADR (2:1) - SI 8-3744 
Besa PLC 10%% Dob Stk 2016 - £109% 


Baas PLC 7%% Um Ln Stk 92/97 - EPS 


Bass Investments PLC 7%% Uns Ln Stk 92/ 
97 - £95 

Bellway PLC 9£H Cum Red PH 2014 Cl - 
106 £73094) 

Bergssan d-y AS 'B' Non Vtg She NK2J - 
MCI 38% 47 

B irmi ngh a m Mkbhkea Btedng Sac B%% 
Perm tat Bering 3hs £1000 • E8S% % 
Blackwood Hodge PLC 5.75% Cum Pri Cl - 
37 (23Se94) 

Blackwood Hodge PLC B% Cum Red Pri Cl 

- 40 

Blockbuster Entertainment Cap She Core 
Stk S0.10 - S£7%* 

Blue Circle tnduetriea PLC ADR £1:TJ - S4J55 
4_58 4.6 4.65 

Blue Circle hdustries PLC 8%% Uns Ln 
5tkf1975 OraftJ - C01 CBSe94) 

Boddngton Group PLC 9*2% Uns Ln Stk 
2000/05 - £90 

Boosay A htewtajs PLC 385% (F toy 5%%) 
Red Cum 1st Pri £1 - 68 
Barney 8 Howtos PLC 4.9% (Ftoy 7%) Cum 
Pri £1 -89 

Boots Co PLC ADR (2:1) - 518% 

Boscarebe Property Co Ld 5% Cum 1st Pri 
£1-80 (2&3e94) 

Bradford A Otngtey Buhflng Society 11 5.% 
Penn Int Bering Shs £10000 - £109% 
Brodlort 8 Blngtay BdkBng Soctety13% 

Perm Int Bering She £10000 - £120% 1 
Brem tatemattonel PLC 9% Cun Red Pri £1 
-B7%(273a94) 

Brant Welker Group PLC Wts to Sub tor Ord 
-1 (28SeS4) 

Brent Walker Group PLC BJS% 3rd Non-Cum 
Cm Red 2007/10 £1 - 2 % % 

Brtdon PLC 6%% Uns Ln Stk 2002/07 - 
£75% 

Bristol Water PLC 5% % Cum tad Pri £1 - 
104(Z78e&4) 

Bristol Water PLC 1040% Red Deb Slk 
200D/DZ - £102 (283094) 

Bristol Water Htdgs PLC Ord £1 - 985 
Bristol Water HUgs PLC 0.75% Cum Cm 
Red Pri 1998 Shs £1 - 192 (28Se94) 

Bristol A West BUkBng Society 13%% Pe»m 
Int Beertng Shs £1000 - £121 % 2 % 
Britannia BuHdng Society 13% Perm tat 
Bearing Sha £1000 - £118% % % % 

Brittoi Akways PLC ADR flttl) - £34% 34J 
35 35.2 S 54% 5 2 .248158 AS .49B2 % 
648 48 % % 

Brittoi Alcan AlumMum PLC 10%% Deb Slk 
2011 - £IOT (28Sa64) 

Brittoi 8 American F8m HWg» PLC Orel Stk 
5p - £9.6 p3Se04) 

BriBsh-Amerlcan Tobeooo Co Ld 5% Cun Plf 
Stk £1 - 50 (28S«94) 

BrttMv-American Tobacco Co La 8% 2nd 
Cum Pri Slk £1 - SB*2 (23So94) 
ftfttoi Fittings Grot« PLC 55% Cm Ftad Plf 
£1 -70 

British Land Co PLC 6% Subord tad Cm 
Sdsteeg) - £91 P3Se94) 

Brittoi Peboteum Co PLC 8% Cum 1st Prf £1 

- 79 (28Se94) 

Brittoi Sled PLC ADR (Itkl) - 525% 8 % <B& 

British Sugar PLC 10%% Red Deb Slk 2013 

- £110% C7S«B4) 

Brtrton Estate PLC 11%% 1st Mtg Deb Stk 
2023 - £113% (27Se94) 

BUgbXAF.) A Co PLC Ord Shs 5p - S3 
ButawtHPJrtdgs PLC8%% 2nd Cun Pri 
£1 -104 

BuUnatfH.PJHdgs PLC 9%% Cum F*rf El - 
110 

Bund PLC 7% Cm Uns Ln Stk 95^7 - £104 
Burmah Control PLC B% Gum 2nd Fri £1 . 

58 (E8SO04) 

Buretoi Castroi PLC 7%K Cum Red Pri £1 - 
67 8 

Burton Ooug PLC 8% Cm Uns Ln Stk 199W 
2001 -£834 

Butte MMng PLC 10% PM) Cnv Cun Red 
Prf19941Qp-2% % (27So94) 

CRH PLC 7% -A' Cum PM lr£1 -EDB4 
CaWarrra Energy Co Inc Shs af Cam Stk 
50.0675 - 517% (27So94) 

Cnradtoi Pattbc Ld 4% Non-Cum Pri GSfig 
NPV - EOB5 (266e04) 

Capital A Comtlea PLC 8%% 1st Mtg Dob 
Stk 93/B8 - £80 

Captu A Counbes n£ 8%% 1st Mtg Dab 
Stk 94/99 • £89% 

Capital A Caunw*s PLC 6%% 1st Mtg Dab 
Stk 96/2000 - £88 

Careto Engineering Group K£ 10%% Cum 
Rod Pri £1 - 98 102 

Cartel® Group PLC 4ja% (NatJ Rod Cnv Pri 
1998 £1 - 80 (23Se04) 

Carlton Conni u ntu a t k ma PLC ADR (2rt) - 
S2052%B5 

Cartton Cotimmkattons rtC 7%% Cm 
Subord Bda 20Cf7(Reg £5000) - £129% 30 
1<283oS4) 

Cater Mien Git Incomo Fd Ld Ptg ftad Pri Ip 

- 506 

Catarpaar Inu Sha of Com Stk SI - S53 % 

5% (28S094) 

Centex Corporation Sha of Com Slk 50.25 - 
323% (27SeB4) 

Chartwood Affiance Mdgs Ld 8%% 1st Mtg 
Deb Stk 05/98 - £97 (28S094) 

Ch e ltenham A Gloucester Btod Sac 11%K 
Perm im Bearing Sha £50000 - £ti1%4 
City She Estates PLC 5J5h Cm Cun Rad 
Pri £1 - 65 7 8% (28Se94) 

Ctevetend Race HcMnga PLC 3%% tad Dob 
Stk - £38% (28Se94) 

Coata Pator* PLC 4%% Una Ln Stk 2002/D7 

- £82% (28SO04) 

Coata Wyete PLC 4a% Cton Pri £1 - 88 
OataianfEJUacltriwaniiinta Ld 8% Una Ln 
Stk 91/98- £94 P6Se94) 

Conwnercto Untan PLC 8%% Cum tod rtf 
£1-97% 

Cornmsrcto Union PLC 8%% Cun tod rtf 
£1 - 104% % 

Co-Operative Bank rt£9JZ5% Non-Cum tod 
rtf Cl - 109% 

Cookson Grcxjp PLC 4 jWS Ptd Ord 50p - 32 
Cooper (Frtftert*) PLC 6Jp (Net) Cm Rod 
Cum Ptg rtf 10p . 88 (26SrtM) 

Coufttadds PLC ADR (1:1) - £4.15 (Z8Se94) 
Courtstoda PLC 5%% Una Ln Stk 94 m - 
£98^ B7Se94) 

Covenoy Buttling Society 12%% Perm Mer- 
est Bearing Shs £1000 - £111% % 

Oafgety PLC 4J3SK Cun Pri £i - 88 
De La Rue PLC 2.45% Cun Pri Slk £1 - 41 
Deberteama PuC 7%% Uns Ln Stk 2002/07 - 
£81 (27Se94) 

Dowhuret PLC Ord lDp - 97 
Dominion Energy PLC Ord 5p - 12 (28Se94) 
Dover Coro Com Stk 51 - 558% p88e94) 
EMAP PLC 6% Cum Pri O - 56 (26Sa94) 
Edlpee Bmda PLC Ord 5p ■ 8 % 9 
a Oro Mtakig&Expiotstton Co PLC Old lOp - 
585 (23SeS4) 

Emass PLC 625p(Nai) Cnv Cum Red Pri 5p 
-73 

ErlcescsiMAKTaietonaiaktooiagenSer 
B|R0^9K1O - SK400 % % 1 1 % %2 % 4 

Essex and SuflOA Water PLC 10%K Deb Stk 
94/98 - cioi p3S«94) 

Essex and Suftoki water PLC 5H Perp Deb 

Stk - £50 C26&S94) 

Euro Dianay S^JL Shs FRS (Deposkory 
Receipt^ - BS 9 100 1 2 3 5 
Euro Disney S.CA Shs FR5 (Br) - FR8 .05 
J2458 3811 

Eurotunnel PLC/Eurotumel SA Units 
(Sfernam Inscribed) - FR21J % .85 31 
Ejt-Lanoa PLC Wananta to sub tor Sha - 23% 
(23Se94) 

ExcaUbur Group PLC I13K Cum Pri El - 
105 

Etotaraaon Co PLC Ckd Stk Sp ■ 287 
C3Se94l 

Falcon Holdings PLC Ord Sp - 133 
Felixstowe Dock A Railway Co Pri Lketa - 
£110 

FtatayfJuneaiPLC 42% Cun la rtl Stk £1 - 
58 81 CeScEK) 

Fkat Nattonal Bunding Society 11%% Penn 
In* Bearing Shs £10000 - £97% CZ8Se94) 
First Nation* Finance Cotp PLC 7% Cnv 
Cum Red Pri £1 - 132 
Fishguard A Rosslaro Rlys A Hera CoO*2% 

Gtd Pri Stk - £38 

Retdier ChoBengo Ld Ord SN05a - 
5N4.2fl67pl59(2SSe94) 

Faikes Grauo PLC Ora 5p - 48 (26Se94) 

Forte PLC 9.1% Uns Ln Stk 95/2000 - £98 
Friendly Hotels PLC 7% Cnv Cun Red Pri £1 

- 92% S <23S«94) 

Frogmen? Estates PLC 13J5% 1st Mtg Deb 
Stk 2000/03 - £109 
GKN PLC ADR (1:1) . S939 C8Sa94) 

GN Great Nordic Ld Sh3 DK100 - DK584 
(28Se94) 

G.T. aue Growth Ftaid Ld Ord S0.01 - S30% 
31% 31^8 31% 32 

General Accident PLC 7%% Cum krd Pri £1 
-91% 

General Accident PLC 87|K Cum tad Pri Cl 

- 105% 6 

Oestetner Htogs PLC Ord Cop 25p - 152 
(23Se9J) 

G/bba A Dandy PLC Ord lOp - 95 
Gtaxo Group Ld 6%% Une Ln Stk 85/95 50p 

- 49 (ZBSetM) 

Cmd MetropoUtan PLC 5% Cun Pri £1 -53 
B3S094) 

Great Urhema Storee PLC ADR (1:11 - BB% 
Gtea Universal Stores PLC 5%M Rad Um 
L n Stk - £S2 (23SeS4) 

GroenaOs Group PIG 8% Cun Pri £1 - 99% 
|27Se94) 

Greeruils Group PLC 9%% ln« Una Ln Stk - 

£91 (SfiSe94) 

Graenolls Group PLC 7% Cm Sutmd Bds 
2003 (Rag) - £102% 

Qutritess PLC ADR (5:1) - 535% 

OumnMS Rlgt* Global Strategy Fd Pig Red 
Pri SOJJUftaean Fd) - S52B8 COSeS4) 
Outaneu FVght Globel Strategy Fd Ptg Rad 
rtf SOOIIHong Kong Fd) - 555.84 (23Se94 
H9SC Htdgx PLC 11.99% Subord Bda 2002 
(Reg) - Cl 02 5 8*j 


HSBC Hdgs PLC 11.89% Stexxd Bds 2002 
(Br EVar) - £107% (27S«84) 

HeKtoc Btodtaa Society B%% Perm Mt Bear- 
ing Shs £50000 - £84% % 

Helfax BuMng Sodety 12% Pm Int Bow- 
ing 9n £1 (Reg £30000) - £113% 

Htodn HoWnga PLC Ord Op - 81 4 
Hambros EudbondAManey Market Fd LdPtg 
Red PH IpCSdg Money MartoR Rmd) - 
£10.111 pttSrSx) 

Hwtanwaon PLC Ord 2Sg ■ 313 5 5 7 9 
Hardys A KornatB PLC Ord 5a - 280 
HantaCPttHp) PLC A2S% (Finly 7%%) Cum 
rtf £1 ■ 77 

HarttafPhilp) PLC (Fmly 8%) "B' Cum 
Prf 1-40,000 £1-81 
Harfiepoela Water Co Ord Stk - £1575 


MEPC PIG 9%% 1st Mlg Dab Stk 97/2002 - 
£ 100 % 

MEFC rtG 8% Uns Ln Stk 2000475 - £93 
MB>C PLC 10%% Una Ln Stk 2032 - £103 
McAlptaeWrod) PLC 9% Cum rtf £1 - 97 
{275oB4) 

McCarthy A Sum PLC 8.75% Cun Red Prf 
2003 £1 -856 

McCuthy A Stone PLC 7% Cm Um Ln Slk 
98/04- £68 

Mandarin (Model International Ld OrdSOJ05 
(Hong Kong Reg) - SHI 0.1 57874 .20754 
(268094) 

Mansfield Brewaiy PLC 11%% Deb S8t 2010 

- filS^e % (ZBSa84) 

Mario A Spencer PLC ADH <8.1 ) - S37B5 
(77SeB4) 

Madam PIG ADR (4.1) - 88% 

Merchant Ratal Group PLC 8%% Cm Uns 
Ln SB* 98/04 - £80 

Mercury in ternational Inv Trust LdPtg Rad 
Pri ip (Reoarva Fund) - £50.1433 (28SeB4) 
Udand Bank PLC 14% Subord Uns Ln Slk 
2002/07 - £11 20 (278094) 

NFC PLC 7%% Cm Bda 2007flRog) - £firt% 
2 

National Medcd Enterprises Inc Shs of Com 
Stk 50X5 - £10*2 5 16JB 
Naitorad Power PLC ADR (10:1) - *74X6 
National Waatmtastw Bank PLC 9% Non- 
Cun Sag Pri Sere 'A* £1 - 103% 

Ntetonffi Weotmtastu Bar* PLC 12%H 
Subord Uns Ui Stk 2004 - £115% 
Nnwerthil PLC 6.775% Cum Prf £1 - 75 
(26SeB4) 

Newcastle BUUtag Society 12%% Penn 
Interest Beartag Sha £1000 - £114% 

Nows taumadetto PLC 8% 2nd Cun Pit £1 

- 7S% 

North of Entfand Bufldng Sodety 12%M 
Perm Int Beaitag (£1000) - £115% 

Northern Foods RG 6%% Cnv Subord Bde 
2008 {Reg] - £87 (28Se94) 

Norihon Foods PLC 8%% Cm SUbord Bds 
2008 flr £ VU) - £84% 85 
OrtatsPLCOrd 10p-24 5 
parr PLC 8% Cum rtf £1 - 08 (23SeBfl 
PadOc Gas A Bectric Co Shs ot Com Stk 55 
-S22B5 

Paridond Onto PLC Old 25p - 175 
POMraan Zochorie PLC 10% Oum Pri £1 - 
118 

Peal Hldgs PLC 10% Cum rtf 50p - 52 
(23Ss94) 

Pad South East Ld B%% tins Ln SH( 87/97 - 
£96 

Pontasdar A Oriental Steam Nav Co 5% Cum 
PM Stk - £48 (288o64) 

Partitas Foods RG OpffeoO Cun Cm Rad Pri 
lOp - 88% 90 pSSe94) 

Petroflna SA Od Sis WV (Br In Denari 1,5 
A 10) ■ BF9920 84 83 91 4 
Petards PLC 9%% Cum Prf £1 - 85 
Plantation A General Jnva PIC 9%% Cun 
Red Pri £1 -90(27Se94) 

Raiteta Group PLC 8% Cum rtf £1 - 65 
p38oB4) 

PortsmouthBSuidartand Newspa- 
peraPLCIl^k, 2nd Cun rtf £1 - 127 
(28SeB4) 

Poidetereroet Ptadnums Ld Od R0026 - 50 
S C27S«94) 

Premier Heeflh Group PLC Old Ip • 2% 
Prudential Cunncy Fund Ld Pig "C Rad Prf 
Ip - 327% (E3Se94) 

RPH Ld 9% Uns Ln.Stk 99/2004 - E92 
P6Se94) 

Rank Oigantaadon PLC ADR (2:1) - Si 2.79 
Reddtt & Catalan PLC 5% Cun Prf £1 -55 


Ranold PLC 7%% 2nd Deb Stk 92/97 - £86 
(27Se04) 

Retail Corporation PLC 4D25% (Fmly 5%%) 
Cum 2nd PrICI -64 

Ream Corporation PLC 4.55% (fmly 6>z%) 
Cum 3rd Pri £1 - 80 
Rodbne PIG ADS - 50.10 (26SeB4) 

Rohr Inc Shs of Com Stk 51 - 59% £3Se94) 
Ropner PIG 11%% Cun Prf £1 - 117 20 
Royal Bank of Canada Gov-SHg Fd LdPtg 
Rad Prf Ip - 49.77 (Z7Se94) 

Royal Bank of Scotland Group PLC S%% 
Cum rtf £1 - S3 (28Se94) 
RusnNNennder) PLC 5.75% Cum Cm Rad 
Prf - 97 

SCEcorp Sra of Care Stk af NPV - 512% 
pTSeSq 

Sated* A Ssatchl Co PLC 8% Cnv Um Ln 
Stk 2915 - £75 [23Se94) 

Scantrodc Htege rtG 7JESp (Net) Cm Cum 
Fled Prf sop - 82 E7SN<4) 

Scantronic rtdgs PLC 5.75% Cnv Cun Red 
Prf £1 - 80 (275094 

Schrodera PLC B%% Um Ln Stk 97/2002 - 


Scottish MetatpcUan Property PLC 10*4% 
Ite Mtg Oeb Stic 2016 - £100% (23S «04) 
Scotttoi A Newcastle PLC 6>(26% Cun Prf 

£■ - 8St 7%± (2855941 

Seam PIG 525% (Frrfy 7%%} Cun Prf £1 - 
73 (27Se94) 

Seam PLC 4B% (Fmly 7%) 'A* Cum rtf £1 - 
67(28Se94) 

Security Services RjC 4%% Cum Prf Stk £1 
-70 

3ranghte FLnd (Cayman) Ld Ptpg Shs *OOf 

- $10% (2BSeB4) 

ShM TranspattATndhgCo rtG Old Sha OO 
25p {Cpn IBS) - 891 v 
3hel TransportATradingCo PLC 5%% 1st 
PrfiCuWEi -56(26Se94) 

Shield Group PLC Ord 5p - 7% (27Se94) 
ShWd Group PLC 6B4% (Nte) Cm Cum Hod 
rtf £1 - 12 (£BSe94) 

Shopnto France (UK) PLC 7B76p<Neft Cum 
Red Pri Sns 2009 - 36 7 8 9 
SkJtow Group PLC 7%% Uns Ln Stk 2003/08 

- £91 (26Sa94) 

Signs! Group PLC ADR (3:1) - Cl J 
SSdptQh Buadng Sodety 12%% Perm Int 
Bearing Shs £1000 - £115 8 % 

Smith ANephaw PLC 5%W Cum Prf £1 - 80 


Smith [W.HJ Group PLC 5%% Cun rtf £1 - 
84 

SmjthKlne Beecham rtG ADH (5:1) - 533^ 
(273aB4) 

SmflWOine Beecham PlG/SmlthKItae ADR 
ram - S30J3 35 

SraurftltJeftareonlGrtHto PIG 8% Cum rtf 
lid - ICCL56 

Stag Furniture KUgs PLC 11% Cum Prf £1 - 
98 

Standard Charisrad PIG 12%H Sutxxd Uns 
Ln Stk 3002/07 - C110% 1% (28Se94) 

Sterling Industries PLC Ite Plfi5%% danUM 
■ 55 (285e94) 

BwkaUahn} & Sorts Ld 83% Cun rtf £1 -73 
C»Se84) 

Symonds Eng in eering PLC Ord Sp - 33 
(28SeB4) 

TSB Group PLC 10%% Subord Ln Stk 2008 
-£105% %6 

TT Group PLC 10375% Cm Cun (tad pm 
S tBtl 1997 - 280(23Se64 
Tate A LytaPLC ADR (4n) - 528.88 (368004) 

Tosco PLC ADR (1:1) - S3J .79 .82 J) 

Toaca PLC e% Uns Deep Dtso Ln Stk 2008 - 
£50%B8So9fl 


jShssaoi 

ODfTBlOBr). 

WORN EMI rtG ADR 0:1) - S1SJ (28Sefl4J 
Thamton Orientte tacome FUnd Ld CapU 
Shs 50.10 - £18.16*35 (Z3Se»B 
Treferow House PLCB%% Um Ln Stk 2000 / 
05-£834l 

TraUgta House PLC 10%% Um Ln Slk 

: Holdings rtG A Cm Prf GOp - * 
i plc s e% cnv m ef 


total Lloyd 
Prt£1-5S 


i DavetopmeM Grotto PLC 4.7% 
IEI-63%8%1 


PLC 365% 


^ys%%) 


Clan 


Hasbro Inc Shs of Com Stk 5050 -530 
(27SOS4) 

Hlgga&hte PLC 7% Cum Prf Cl - SB 
(28SOS4) 

Haanes Protection Group Inc Shi of Com Stk 
. 33^ 

HopMmons Grotto PLC 5L2S% Cun Prf £1 - 
73^33094) 

IS KflmaUyan Fum NV Or) RjOJM - £17 17% 
17^3 17% 17% 17% 17% 

Iceland Group PLC Cm Cum Rad Prf 2Cp - 
<189 

Inch Kenneth Kajang Rubbw PLC lOp - 
£13% (283*94) 

Industrial Control Services Grp PLCOrd (Op- 

139p8Se94) 

tall Slock Exchange af UKUtap of Hjd 7%% 
Mlg Deb Stk 90/95 - £99% (27Se94) 
tail Stock Escnonge of UKAFtap of klO%% 
Wfl Deb Stk 2016 ■ £102# 

Irish Ufa rtG Old famiO - £18 1-82 183 p 
189 90 

Jartene Matheean Hdgs Ld Old 5025 (Hong 
Kong Register) • SHE&82B235 7 7 3 
.71016 .757489 

Janflna Strategic Hdgs Ld Ord 5085 (Hong 
tong ne gated - 5H31J . *27555 MB 
.730500 

Johnson S Ftah Brown PLC it -05% Cum Prf 
£1 - 90 (27SeS4) 

Johnson Group Cto onsi a rtG 78p (Not) Cm 
Cum Red Prf TOp - 130 <26So94) 
Johneo^Mottiwy PLC 8% Cm Cum Prf £1 - 
320 50 (23So94) 

Jones & SHpmwi PLC *8% Cum Prf 2Sp - 
IS (28Se94) 

Kkigftsher PLC ADR (21) - 516% 
Korea-Eurape Fund Ld ShsfiDR to Br) 50.10 
(Cpn 7} - 54500 4812% 

Kvaemer AS. Free A Shs NK12JO - 
NK28382 6 

Ladbroke Group PLC ADH (Id) - $286 
Land Securities PLC 9% laf Mrg Deb Stk 98/ 
2001 - £09 100 !28SeBQ ' 

LASMO PLC 10%%DsbS(fc20a9 - £102% 
(27SeB4) 

LotXhva Plattnwn Mkra Ld Ord ROJJ1 - 77 
Leeds A Holbeck BuMtag Soctaty 13%% 
Ptem Inf Bearing Shs £1000- £120% 1% 
Leeds Per ma nent Bunding Sodety 13%% 
Rsnn Int Bearing £50000 - £127*4 
LawteCJotaftPa n nerst il p PLC 5% Cum Pri Stk 
£1 - 58 (2BSe94) 

LewtoJorm)PBrtnastto PLC 7%« Cum rtf 
Stk £1 - 75 (23S094) 

London Cremation Co Ld 10% Cun Prf £1 - 
130(Z7Se94) 

London tatemationte Group PLC ADR (5:1) - 
ST 24 72498 

London Secwities PLC Old ip - 2% CMSeOfl 
Lonrtw PLC ADR (Id) - 5287 P73o94j 
Lookers PLC 8% Cnv Cion Red Prf £1 - 118 


Twee fo nte i ii United Cofltettaa Ld Od RIL50 - 
£12% FZ8S (28SSB4) 

Urdgan PLC ADR 0^ - 55% 

IMgate PLC 8%% Um Ln Stk 01/Be - £93% 

4 p ^gf*)*) 

UrtflSte PLC 6%% Uns In Stk 92/37 - £90 
Untavtr PLC ADR (tel) - 57087 70% 70% 
Union International Co PLC 8% Cun rtf Stic 
£1 -39 40 

Vbuk Group PLC 4%% A Oum rtf £1 -45 
(28SeS4) 

Vtem Group PLC 7% Cun Prf £1 -55 


Capital Gearing TVute PLC Ord 26p - 480 
Clemente Kcroa Dn e iglh g Grewth FundSha 
510 (Reg Lute - CB.067 5 12% 12% 

DuneUn VWcridwtoe tav Trust rtG 3%% Cran 
Prf Stic - 1£2% (23S«04) 

Fhebuy Smaller Go's Trust PLC Zero Prf 
2Sp - 179% pSSteW) 

Foreign A Col liwest Trust PLC 7?*% Deb 
Sta 8tVM - £99 «27S«S4) 

Gottmora British Inc A Grin Tte PLCZsro Dh4- 
dend Prf lOp - 101 

Gortmora Shared Equity Trust PLC Geared 
OdtaelOp-104%5%8 
HTR Japanese SiraBar Co's Trust PLCOrd 
25p - UM 4 % 3% 

tavestors Crottai Trust PLC S%% Cun rtf 
Stk - £S4 (23SeB4) 

JF FtadgeBng Japan Jd warrants » sub tor 
Ord -51 

Lotted Select Investment Trust Ld rtg Red 
rtf 0.1 p Gtobal Active Fund - 03.14 ilia 
I23SOS4) 

Lizard select investment Trust Ld Pig Red 
Prf 0,1 p UK. Active Fund - £13.79 1384 


African Gold PLC Ord Ip - £08325 
All England Lawn Tennis Ground Ld Deb 06/ 
2000 £2000(£4350Pd-15rf»/Sfi - £6750 


tout Group R£ 11%% Deb Stk 2010- 
£1138 CBSe94) 

Vodafone Group PLC ADf^Ittri) - 530% 
89691 % 

Wagon Industrial Hldgs PLC 72Sp (Nal) Cm 
Ptg Pri lOp- 145 

WaftarfJ.a) A Co PLC Ord Z5p - 380 


WaltafTTlQmas) PLC Ord Sp - 27 8 (28Se94) 
Mtotwro (SJ3J Group PLC 7%% Cun Prf £1 
- 88% (27S«34) 

Warburg (S.G.) Group PLC CnvDUSSp - 
423 9 (23So94J 

WSKroms PLC ADR (1^1) - 510% 

WeOs Forgo A Company Shs of Com Stk 5S - 
$146% a (28Se94) 

WenfiMy PLC eppfefiCm Cun Red Prf 1999 
£1 -58 

WhH&riMd PLC 7%% Um Ln SUc 95/99 - £89 


WNtbraod PLC 7%% Uns Ln Stk 90/2000 - 
E93%4 * 

WhBbreed PIG 10%% urn Ln Stk 2000/05 - 
£104 

Whhecroft PLC S.1% Cum Prf £1 - 57 


widnay PLC 8.78% Cnv Cun Red 2nd Pri 
2000 £1 - 90 (27Se84) 

Wills Comxn Group PLC ADR (5ri) - SI f% 


wodcombera Group PLC 7%K Cun Prf Stk 
£t -B3(26Se9J) 

Wyevata Garden Centres PLC 8£% (NeQ Cm 
Cum Rsd Prf £1 - 155 
Xerox Carp Cam Stk SI - S10S8* 

York Waterworks PLC Ord lOp ■ 315 
YoritsNre-iyne Tees TV Hides PLC Wts to 
sub tor Ord - 223 

Zambia ConsoMtesd Cooper Mines ld*B* 
Old KID-210 

Investment Trusts 

Baflte Glflord Japan Trust PLC Wts to Sub 
Ord Shs - 88 (27Se94) 

BaBIs Gritted Shxi Mppan PLCOrd IQp - 
160 82 1 % 2 % 3 

BaWa Gifford Shin Nippon PLC Warrants to 
sub tar Ord - 119 07SeO4) 

Baring Tribune tairosmont Trust PLC9%% 
Deb Stk 2012 - £96% (ZttS04) 

Baroosm ea d Investments Trmt PLC Wts to 
sub tor OTO -21 (27So94) 

Biflfsh Assets Trust PLC EquUM Index ULS 
2005 lOp- 151 


LazaTO Select tavetement Trust Ld Pig Rad 
Prf 0.1p LLK. Liquid Assets Fund - £109 
Leveraged Opportunity Trust PLC Zer Cpn 
Cm LlnsLn Slk 96S3S - £120 
London A St Lawrence Investment PLCOrd 
Sp - 1S3 

Merchants Trust PLC 385% Cum Prf Stk £1 
-52% CZTSeS*) 

Monks kiueetiiiteif Trust PLC 11% Deb Sti> 
2012 - £112 p6Se94) 

MarganGrantaBLStaAmarCo'a Tst PLCWts to 
sub far Oral - BO 1 

Murray mte rn te tanal Trust PLC 3.9% Cum Prf 
£1 - 57 <26Se94) 

New Throgmorton Trusl(l983) PLC Zero Cpn 
Deb Stk 1998 - £89*4 (26Se84) 

Paribas French Inves t me n t Trust PlGSere *A* 
Wamsite to sub tar Old - 25 C6S^4) 
Patoas French nveetmsnt Trust PLCSers 
"B* Warrants n sub tar Ord - 23 (27Se94) 
Scottish Eastern tav Trust PLC 9%% Deb Stk 
2020 -£101% (28Se94) 

Scottish Mortgage A Trust PLC 6-12% 
Stepped tat Deb Stk 2026 - £123*4 
(27SS94) 

Scottish National Trust PLC 10% Deb Stk 
2011 - £102% (23Sq04) 

Securities Trust of Scotland PLC 12% Deb 
Slk 2013 - £120 

Shires Kgh-YMdtag Sn* Co's TslWts to 
SUb tar Ora - 72 (26SeS4) 

Sphere tavesonent Trust PLC Revised war- 
rants to sub for OTO - 5 (2S3e94» 

TR Oty of London Trust PLC 10%« Deb Slk 
2020 - £105 (28Se94) 

Temple Bar tavestmeAt Trust PLC 48% Cum 
Pri Stk £1 - 81 (27Se94) 

Updonn Investment CO PLC Od 25p - 570 


Arer Street Brewery Co Ld CM £1 - £4 4 
(28Se94| 

Ann Street Brewery Co Ld Cnv Rod 2nd Pri 
£l - E8% p79a94) 

Ascot Iftdga PLC Vtr Rato Cnv Cun Red Prf 
10p - HL04O15B 

Aston VSa Footital Cu> PLC OTO G5(1 vote) 

- E85 (33Se94) 

Azure Group PLC OTO 10p - C083 
Barclays Investment FuncKCJ.) Starting Bd Fd 

- £0.4044 pTSeSfl) 

Baku tavestment TVute PLC Old Ip - DL01S 
Bel Court Find Managemert PLC Od lOp • 
£185 

Bison Industrial Group PLC Ckd Ip - C0.1 
Bounsmouth Water PLC 12%% Rad Deb 
Stk 1995 - £101% (27Se94) 

Bnmcoto Hakfings PLC Ord 5p - CO-475 
IL47S 

Brockbank Group PLC Old lOp - £2 

Cavenham PLC OTO ip - COLT 

Celtic Football A AMeacCa Ld CM Cl - £65 


Channel Islands Corns (TV) Ld Ckd 5p - £083 
Country Gardens PLC Ord 25p - £082 

(88S og*) 

Dawson Hldgs PLC Ord lOp - £485 
Eateboume Water Co 8875% 1« Cum Aid 
Pri - Cl. 015* C3Se94) 

Biol (Bj PLC 78% (Net) Cm Cun Red Prf 
£1 - £18 

Enterprise Computer Hdgs PLC 10% Uns Ln 
Stk 93/96 - £25 25% C3Se94) 

Fansst Broadcast Corporation PLC CM Sp - 
£053 

F u nns ca n taternotionte Group PLC Ord Ip - 
£0.45 (27S094) 

Ftandstown Mn&EteJeraeylLd CM 5001 - 
£1.72 1% (28Se9 4) 

Furiong Hornes Group PLC Old lOp - £184 


Wiainore Property Investment Tst PLCWts to 
fiubtarOTO ■ 345 

USM Appendix 

Dakota Group PLC Ord MKL25 - (£0.17 
(37Se94) 

Betas PLC Ord 10p - 310 38 C3Sa94) 

Gfobs Mew PLC Ord 25p - 440 1 50 2 
Mkfiand A Soottt^i Reaouoss PLC OTO I0p- 
2 3 P63e94) 

Stating Putftshmg Group PLC 8% Cm Cum 
Red Prf 2000 £1 - 117 (28S«94) 

Tata Systems PLCOrd 5p - 28 


Gander Hofcfngs PLC Ord lp - £007 
Guernsey Gas Light Co Ld OTO 100 - Cl 
Gutton Group Ld CM lOp - Civ* (27Se94) 
Hambros Fund ManagetaCJJ Japan Enter- 
prise Fund - £2897 C23Se94) 
t E S Qoup PLC OTO lOp - £3.67 3-7 

B8Sa94 

BWESCO fctiM tatamationd Ld Japan tacome 
A Growth - £1833 C8Se94) 

Just Group PLC Old lp - £0.0335 084 
(27SS94) 

K M nwott Benaondnt) Fund Man hit Ace Units 
Bond Fd - £14826{27Se04) 

Ktehiwott BeneonQnft Fund Man KB GU Fund 
- £13.84 (23Se94) 

Khemwort Bensonfint) Fund Man kit Equity 
Gwtti Inc - £2.7011(1 

LencasIVre Entecprism PLC Old Gp - £1.08 
(27Se94) 

La Rktiw'a Stores Ld Ord Cl - £2.8$ 283* 
Latsuefone Inns PLC CM Sp - £086 
(263*84) 

London Fiduciary Trust PLC OTO lp - £0.02 
MAGCGuemsay)lstand Gold Fund Inc Units - 
E35.7Z) £7Se94) 

Manchester C«y Football Chta PLC Ord £1 ■ 
£14(275*94) 

Manx A Overseas PLC Old 5p - £087 


Rule 4.2(a) 


Advancod Media Systems PLC Ord £1 -£i% 
1 81 (27S«94) 


Marina A Maroanflta Securities PLC Ord 
kC(L20 - £1% 183 

Mottflc Int ama ttaral Group PLC Ord lp - £08 
0 % 

N.WJF. Ld Od £1 - £6.65 (275*94) 

Newbury Racoonne PLC Ord £100 - £2500 
<28S«94) 

OmnWetfia PLC Old Sp - £081 OJ54 
(28Se94) 

Pacfflc Meitt PLC OTO lp - 2% % A % 


Pacific Medta PLC ll* Cum rtf Cl - £0% 
l27Se90 

Pan Andean ReseurosB PLC CM lp - 
£085125(275084) 

PerpmuaXJerBay) Offshora Aslan Smaler 
Markots - 51 884256 OtiSeSM) 

ParperomUersay) Offstvrc Emerging Co's - 

S8894053 C7S«94) 

Rangers Footpad Cub PLC Ord lOp - EO% 

(285084) 

Schroder Management 3srv1c*s(GuamJSchii>- 
der European Bono - £682337 5 10.4363 
P3So94) 

Select (ncbStriM PLC New Ord 7%p (3p Pd) 
-C083 

South Green Hldgs PLC CM lp - £0 Ot 
p8SeS4) 

Southern Newspapers PLC Ord £1 - £4.4$ 
Southern V«ctu PLC Ord top - £D% 

(27Se94) 

ThwahesCDteveOA Co PLC CTO 2Sp - C= 6t 
(26SeB4) 

Trader Network PLC OTO Cl - CB% 1295*94) 
Unicom tana PLC Ord 25p - £0.6 (26Se84) 
Veterinery Dreg Co PLC Old £1 - £4.1 
IZ7S*M 

Vtata anertataments PLC Ord Sp - £00175 
0815 

wadwem a Co -A- oro ct - £9 1 (23S«94) 
Warburg Asset Managemem Jersey Mercury 
inti Goto A General Fd - £18885 
wedderbum Saasttiee PLC Ora 5p - £0.135 
0.14 0.1425 0.15 (27S094) 

Weoderoum Securities PLC Wte to sub tor 
Ord - £0.05 

WraabU Ld *A* Non-V Ord 23p - CIS 16?* 
Wentworth in te r na tio na l Group PLC Ord ip - 
£081 (?3Se94) 

Whitchurch Group PLC Ord lOp - C0% 
(283*94) 

RULE 2.1 (a)(v) 

Bargains marked in securities (not 
faffing within Rule 2.1 (4(1) ) where 
the pridpal market Is outside the 
UK and Republic of Ireland . 

Aust Founctatiori tav A52.0S644H2881 
Altai Hy d roc a rbon s ASa 148(275) 

Bamboo Gold Mines AS08297C78) 

Bh of East Asia HS30.4S81P89) 

Beach PebalaumASO. 11 5(278) 

Boise Cascada 530(288) 

Bolton Prop RM4.02 1823,4842 1 4507.9) 
Centaur Mining A Exp AS0842092(2B9) 

Cay Davotapments 858.0583(298) 

Cars Resoupes AS0.708CN.9) 

□evex ASQ.71(27.9) 

Doc A Btek HS0 l931(2B8) 

Forest mbs £29866324(28.9) 

Gen Sacurifin Inv SSl .97208(29.^ 

Malayan Cement 352.7833752.7775(28.9) 
Malayan Credit SS3j40S8C8-91 
Malaysian Plantations 55(238) 

Ofl Search 41(288) 

Sapphire Mines ASO. 1 18(278) 

fly P et m i tH o rt of tiw Stock Ercnong* Conncff 





If the 

rainforests arc 
being destroyed at 
the rate of thousands of 
trees a minute, how can planting 
just a handful of seedlings make a difference? # 

A WWF - World Wide Fund For Nature tree 
nursery addresses some of the problems lacing people 
that can force them to chop down trees. 

Where hunger or poverty is die underlying cause 
of deforestation, we can provide fruit trees. 

The villagers of Mugunga, Zaire, for example, eat 
papaya and mangoes from WWF trees. And rather than 
having to sell timber to buy other food, they can now 
sell the surplus fruit their nursery produces. 

Where trees are chopped down for firewood, 
WWF and the local people can protect them by planting 
fast-growing varieties to form a renewable fuel source. 

This is particularly valuable in the Impenetrable 
Forest, Uganda, where indigenous hardwoods take 
two hundred years to mature. The Markhamia lotea 
trees planted by WWF and local villages can be 
harvested within five or six years of planting. 

Where trees are chopped down to be used for 
construction, as in Panama and Pakistan, wc supply 
other species that arc fast-growing and easily replaced. 

These tree nurseries are just part of the work we 
do with the people of the tropical forests. 

WWF sponsors students from developing countries 
on an agroforestry course at UPAZ University’ in 
Costa Rica, where WWF provides technical advice on 
growing vegetable and grain crops. 


Unless 
help is given, 
is exhausted 
very quickly by “slash 
and bum” fanning methods.- 
New tracts of tropical forest would then have 
to be cleared every two or three ycars. 

This unnecessary destruction can be prevented by 
combining modern techniques with traditional 
practices so that the same plot of land can be used to 
produce crops over and over again. 

In la Planada, Colombia, our experimental farm 
demonstrates how these techniques can be used to 
grow a family's food on a small four hectare plot. 
(Instead of clearing the usual ten hectares of forest.) 

WWF fieldworkers are now involved in over 100 
tropical forest projects in 45 countries around the world. 

The idea behind all of this work is that the use of 
natural resources should be sustainable. 

WWF is calling for the rate of deforestation in the 
tropics to be halved by 1995, and for there to be no 
net deforestation by the end of the century. 

Write to the Membership Officer at the address 
below to find out how you can help us ensure that 
this generation does not continue to steal nature's 
capital from the next. It could be with a donation, 
or, appropriately enough, a legacy. 


***** 




WWF Worid Wide Fund For Nature 

(Mimcrlr Wotld WUdliCe FunJI 

International Secretariat, 1 196 Gland, Switzerland. 


FOR THE SAKE OF THE CHILDREN 

WE GAVE THEM A NURSERY. 






FT-SE-A All-Share index 


LONDON STOCK EXCHANGE 


MARKET REPORT 



2 W 


. i \ 


' \ t * ? 


Buying programme lifts shares at the close 


Equity Shares Traded 

Turnover by volume (mfflkwj. Exdutftng; 
Inba-maritei busanns and oveneas lunmer 
1.000 


By Terry Byland, 

UK Stock Market Editor 

The UK stock market rounded off 
the third trading quarter of the year 
with a sudden burst of optimism as 
a £100m buy programme, reportedly 
from UBS. the Swiss taSSSSS 

bank, helped spur the FT-SE 100 
Share Index comfortably above the 
3,000 mark. 

The final reading put the Footsie 
at 3.026.3, the best of the day anti a 
net gain of 33.8 on the session. The 
December stock index futures con- 
tract closed strongly just above 
3,010. Almost ail the advance in the 
equity sector came towards the 
dose of trading when markets also 
responded to reports, later denied, 
of a favourable settlement to the 
US-Japan trade negotiations. 

For much of the session, the mar- 


TRADING VOLUME 


■ Major Stocks Yesterday 


ket moved uncertainly, regaining 
and then losing the Footsie 3.000 
benchmark in very modest trading 
volume. The big securities houses 
were still digesting the £250m trad- 
ing programme of the previous day, 
which had proved the final straw 
for trading books already hit sev- 
eral times fills week by sizeable sell 
programmes. Some dealing houses 
are believed to have suffered severe 
losses as share prices have moved 
sharply and often erratically. How- 
ever, retail business in equities has 
re mained at a profitable level for 
the London securities industry. 

Market confidence was not helped 
when S.G. Warburg, the London 
based investment bank, trimmed its 
year-end forecast for the Footsie 
In dex from its long-standing target 
of 3^500 to 3^50 because of the con- 
tinued weakness in UK gilts. 


Boosted perceptibly by yester- 
day's late upswing, the stock mar- 
ket ended the third quarter with a 
gain of around 3.7 per cent, or 107 
points on the FT-SE 100 Index over 
the three months. This week has 
brought further pressure on UK 
equities, with some institutions 
moving into bonds and some prefer- 
ring to face their quarterly meeting 
with trustees with increased 
weightings in cash rather than equi- 
ties. 

The stock market had settled won 
with a very modest gain at mid-af- 
ternoon yesterday when equity 
traders had effectively balanced 
their books for the end of the quar- 
ter. Consequently, the Swiss hank's 
buying programme, accompanied by 
a sharp jump in the Dow Average 
on the US-Japan trade talk 
rumours, sent the market ahead 


sharply. The gain in the Dow was 
also trimmed to 10 points in UK 
trading hours. 

Trading volume was slow to 
develop and the Seaq total stood 
barely above 3,000 shares in early 
afternoon. By the time the market 
dosed, the trading programme had 
lifted the Seaq total to 551.1m 
shares, still lagging behind the 
586.8m of the previous session. Blue 
chip stocks attracted most of the 
interest yesterday, non-Footsie busi- 
ness making up only about 54 per 
cent of the total. On Thursday, 
retail, or customer activity 
remained fairly high, with a value 
total of £1.44bn. 

The broader range of the market, 
less closely linked to stock index 
futures, played little part in the late 
rally in the market The FT-SE Mid 
250 fade? continued to fall, rins ing 


a further 9_2 off at 3.49L8. 

Long-dated British government 
bonds dosed firmly, encouraged by 
Improvements in German and US 
bonds. Though sluggish for most of 
the day, the long dates ended with 
gains of nearly half a point 

The short gilts, still nervous over 
the near term prospects for domes- 
tic base rates, had a quiet day and 
Jacking supporters, ended a shade 
off on the session. 

The UK markets are expected to 
open the final quarter of the year 
on a cautious note, with Investors 
focusing on important economic 
data due next week in the UK and 
from Washington. The most serious 
test of the Federal Reserve's poli- 
cies and the market's nerves is 
expected on Friday when the latest 
US payroll and unemployment fig- 
ures are due. 



Jut 

Sowbk FT Grephtra 


n 

fl* 

1 

\:HC 




■ Key Indicators 

Indices and ratios 


FT-SE 100 Index 


FT-SE Mid 250 

3494.8 

-92 

Closing index for Sep 30. 

-.3026-3 

FT-SE-A 350 

1521.4 

+122 

Change over week 

-1.8 

FT-SE-A All-Shara 

1510.97 

+10.88 

Sep 29 

_..2992.5 

FT-SE-A Afl-Share yield 

3.96 

(4.01) 

Sep 28 - 

....3038.7 

FT Ordinary index 

2350.1 

+26.3 

Sep 27 

—3008.5 

FT-SE-A Non Fins p/e 

18.52 

a 8.38) 

Sep 26 

....2999.8 

FT-SE 100 Fut Dec 

3042.0 

+46-0 

High* 

—3040.9 

10 yr Gift yield 

8.89 

(8.93) 

Low* 

—2986.0 

Long gilt/equlty ykl ratio: 

2.23 

(222) 

'Intra-day high and low lor weak 


EQUITY FUTURES AND OPTIONS TRADING 


vu. Ctaotog Day’s 
OOOa Dries donna 


3.100 3»>3 Ol 

ASDA Grant 5,700 a&> 2 < 

MMy Nadonort 3.100 380 +8 

Afcari FWnr 428 47 -1 

ABad Domscqt 1,700 S6S «2 

An^anWaer 888 SMlj -aU 

. 453 318 -1 

AriOiQnjpT 2500 274lj 

AijolMogWr 1.000 288*3 

Asaoc. Ml Foodsf 839 807 -z 

foam. &1t Pena 495 265 + 1 

g** t . ■ *» 487 413 

BATWs-t 3.300 *36*7 *l**j 

g£T 4.800 102 -alj 

WOC 757 350 -1 

BOCt 617 881 >2 +M* 2 

BPf 11,000 389*3 «4*2 

BreSWi. 172 302 *1 

Bit 11.000 364 -i 

BTffVPaM) . 8.400 2*3*3 

HTRt 8,400 308*7 *1*1 

Bar* erf ScMlondf 838 207*7 

attaint 1.800 570*7 *11*2 

flmat 1000 518 

Bub Ctadat 3000 277 -1 

388 418 -3 

BootaT , 1,000 528*2 44*7 

BdWttsrt 1,300 472 #17 

BrU. AoDopocat 2200 452*2 <3*2 

Srtush Atooyit 4X00 3H +17 

BrttohGaat 15.000 298*7 40*» 

Bmtan Land 101 390 -I 

Brfilah Stpeff 4.700 172V +3V 

Bud 2^00 172 +q 

Bumah Croacrff 851 845 *6 

Burton 757 58*2 **+ 

Cabta & Wkaf 2.700 389*2 **2 

Cadbury Sttiwappeet 1,600 440 

Canadant 1,400 268 -8 

Carton Comma t 1.100 838 <6 

Gmu Vryaia 404 200 +1 

Comm. Unlonf 2 JO 0 503 +7 

Cookson 70S 238 -3 

CourtaJdst 1.000 437 -6 

Ck*9*«V 269 438 -7 

DoLafewt 201 820 

Dtaoni 112 181 -2 

Eastern Bectf 388 742 -1 

Eart Mrfand BwL 888 722 *3 

EngCNmCtaya 1.100 355 -2 


AriBlGmupt 
A 1 J 0 VUIoi^wr 


MonteonftVmJ 

NFC 

HMu Bordet 
NBknal Powarf 
Nnt 

North West Wttarf 
Ncrttnnaect 
Nontwm Foortrf 


PowarOent 

PRKSMdrff 


M?iSaknant 


Enterprise Gift 
Eurotunnel Units 
FK 
Aura 

Fcrstan & COL 1.1 
Fartet 

Gen. Acddentt 
Ganoid Qoclt 
GHaet 
Glyrraed 
Oranadaf 
Grand Matt 


GuIrtneECf 

HSBC (75p ahnlf 


rar 

tadicapat 

Johnson Mattery 

Ktaflfchsrt 

Kw*. Sava 

Ladbrahat 
Laid Boorttmt 
Lapona 

LapdSGanmt 
UoyotAbbay 
Uovrta BankT 
LASMO 
London OacL 

Bud oi mans adcs 
01 on* mod or more 


398 387 

3*8 258 41 

327 185 -2% 

4.700 117 

309 138 41*2 

2400 224 42 

881 848 4« 

4.700 292 +3 

3400 585*2 +11*2 

48 325 -1 

1,200 608 +4 

1800 408*2 43*z 

1.100 see »io 

720 183 *2 

1500 816*2 +12*2 
1800 458*2 *6*2 

8.500 882*2 -13*2 

82S 318 «2 

7.400 230*4 +31* 

451 187 

121 382 

4500 173 -2 

380 291 -2 

2.100 831*2 «0 

1000 427 *1 

80 548 -2 

1.100 488 +12 

78 558 -2 

1900 16* -a 

1900 624 

55 715 -3 

1900 440 +4 

488 330 -1 

2JCO 545*2 -2*2 

1900 153 42 

830 885 43 


Ffead M.t 
RenmMt 
Rauuraf 
FUsHoycaf 
<V Bk BcaSuidt 
Royal kuurancaT 

13=21 

ScotttiftNow.t 
Soot. Hyrto-BacL 
Scottish Pnmrr 
Saarsf 
Sadgatok 
Oaeapud 
Sown TTantf 
Shal Ttanapartt 
Stebef 

Slough r 1 — 

3ratt (W.MJ 
Smtti ft Nephnrf 
SraM Baaebamt 
SmKl Baacham Uta.f 


Soran WMn Bac*. 
South WsatVWtar 
South Wort. Boot. 
SeuzhanWuu 
Standard CbaraLf 
SBorahousa 
Sun A fcicat 
UN 

Tl Gnjupr 

USt 

Unnac 

Tan ft Lite 

TMtorlNbadrow 

Taacof 

Thamaa Watarf 
UomBAf- 


IMMModtst 
Utd. Nwapaom 
Vndakwrt 
Woitju^ fSGJt 


Wodati Wiarr 
WaurWor 


wa«mmaa.t 

WMaConoan 


YarkafelraBacL 
Yodartko Mdor 
Zuncat 


Vol Ooarnfl Day's 
000a prica rtug 
814 131*2 +1 

3J00 196 43 

1.700 444 -1 

180 130 <1 

212 787 -5 

5200 402>z +1 

598 738 -8 

222 133 -1 

2.100 181 45 

7900 487*7 +11 la 

1900 400*7 +10 

1900 338 

875 591 -1 

190 756 -2 

1900 795 +1 

112 771 -1 

708 982 +7 

748 634 46 

3900 187 

1900 638*7 +12 

2.400 297*7 +7*7 

22S M2 +7 

3.100 678*7 -8*7 

1900 232 -6 

1900 403*a +4*2 

1.400 841 48 

1.400 483*2 4*2 

618 786 +13 

1900 221 -2 

856 475*2 +**3 

6900 160*2 -1*2 

3900 415 -1 

1.100 288 40 

1.700 400*2 +8*2 

118 1378 -2 

1900 484 -a 

1900 335 4ft 

3900 390 +7 

14900 103*2 44 

2.100 145 -3 

1900 401 -6 

100 547 -4 

2900 908*2 +11*2 
279 640 42 

510 234 -1 

304 437 -12 

1.700 143 -*a 

4900 427 44 

1900 391 4ft 

190 421 

1900 724 411 

3. IDO 733 -28 

118 97*2 -*2 

20 730 -ft 

270 574 -ft 

3900 202*7 46*2 

2900 130 

535 321 48 

1900 223*7 +7*7 

829 847 43 

2900 217*2 49*2 

7,400 127*2 +1*2 

1400 444*2 47*2 

2900 119 -3 

4900 235*7 +3*2 

178 507*2 -3*1 

1900 898 -0 

5.100 221*2 +7*7 

1900 84 

HO 334 -3 

1900 1124 4ft 

410 307 41 

•50 408 +7 

4900 197*2 +2 

281 670 -11 

738 040*2 46*2 

810 043 4ft 

222 004 -3 

an 538*2 +7 

1900 339*2 *3*2 

1900 147 42*7 

1900 138 +1 

232 787 +10 

246 718 

128 524 -6 

1900 807*2 +10*2 


Stock index futures rebounded 
strongly yesterday in good 
volume for a Friday and with a 
strong premium to the cash 
market in evidence for most of 
the day. 

At the close the FT-SE 
December contract was 56 
points higher at 3,042 after 
touching 3,044 in the final hour 


of trading. 

Trading volume at the official 
4.10pm dose was 14,599 
contracts, up from 14,021 in 
the previous session and 
12,700 a week ago. 

Traded option turnover 
slipped to 22,036 lots, down 
from 28,981 on Thursday. 
FT-SE volume was 12,799 lots. 


3700 3700 3800 3850 


3500 3550 3600 3850 3700 

Oct 116 90*2 94 114 74*2 141 
Ctfa 0 nm 0 Satttaraofi prteaa and nYimn n am at 430pm. 


FT-SE-A INDICES - LEADERS & LAGGARDS 


Pommage chongaa since December 31 1993 based on Friday Sept 30 1994 

W euptoatoi 4 Ptud _ +A38 Food U*ii6*+unra -7 AO Tsnsts 4 Apml 

Engkeertag, VoMda +&3B FT-SE Ml 250 ei IT -793 Cx Odateson 


PrMtoQ.Pwr4tag. 
Exmtibe Motts 

FT Grid Mas 

Mksm Ertscass 


camami ma^ itsgwi 


FT - SE Actuaries Share indices 



— +260 

awmiak 

+060 


. 4L03 

laton ft Hoteb 

FT-SE Snaicw at (T. 
aacauir 

-1-55 

-125 

- -287 

FT-SE Map 

-289 



Soiarel ttntodtnn 

-887 


4098 FT-SE Ml 250 BIT.. 

. +6.12 FT-SE Ml 250 

+047 NOD-Fksnddi 

+399 tenera Truss - 


-1.55 Oansuns Goods 

-1J5 FT-SE-A Al Stare 

-247 FT-SE-A 360 

-ZJ9 Uttar 

-446 FT-SE 100 

■892 nitfdfcdksuttb. 
-447 Support Sentss 


urns 

-12J7 

Dtoftotis . • 

Ue Assurer** 

RM8n Gaoeai 

Befttog UMa ft Uareta — 
ManteatMa 

-15.16 

•15JB 

•1583 

-1685 

-T7AS 

ftararty 

-1686 





TfliaconwTirtcjffloQa -— 

-1984 

Barts . , , 

-2224 

Bcfidng & Cmoucttn — 

-21X60 



Tooaeca -71.13 


The UK Series 


tea 

Daft 

EtpM 

top » 

top 28 

Sap 27 

Yea 

800 

ON. 

jn_ 

Eva 

*!% 

WE 

irtto 

Waft 

TOW 

fleun 

Htfl 

— 198* 

Lot 

- 

wen 

State Can 

Urn 

38268 

+1.1 

29925 

30387 

30085 

30395 

4.18 

721 

1657 10428 

114601 

33203 

2/2 

25780 

24/6 

35205 

2m* 

■00 J 

23/7/84 

34948 

-08 

35048 

3S338 

35175 

34287 

357 

307 

2052 

9805 

130007 

41525 

3/2 

33834 

Z7* 

41525 

3/2/M 

131*4 

21/1/88 

34892 

-04 

358)8 

35312 

3S17.7 

34365 

324 

655 

1908 10158 

129529 

<1807 

19/1 

33824 

27/8 

41607 

ifln/M 

13785 

21/1/88 

152M 

+08 

15002 

15301 

15185 

15T9J 

4JM 

600 

17.17 

5030 

117707 

17785 

2/2 

14615 

24/E 

17703 

2/2/M 

■45 

14/1/86 

181420 

-03 

1818.13 

1B20M 

18Z742 

178954 

326 

400 

26.19 

4321 

140727 

289408 

4/2 

171*51 

tn 

2OM0B 

4/2/M 

T3S379 

31/12/82 

17858* 

-03 

mu 

179727 

180000 

1765X3 

3X5 

552 

2334 

4498 

138807 

208072 

4/2 

175258 

12/7 

208072 

4/2/34 

08179 

31712132 

151097 

+07 

150009 

151978 

150756 

150885 

308 

075 

1702 

<808 

118078 

1764.11 

2/2 

1 44305 

24/S 

1714.11 

209* 

6152 

13/12/74 


R-SE 100 302&9 +1.1 29925 30387 30085 30399 4.18 791 1697 10+98 114891 332CU 

FT-SE HM 250 34944 -09 35049 35315 35179 34207 157 157 3L52 9895 130097 <1521 

FT-SE MU 290 K to* TfUts 34899 -04 35014 35519 3517.7 34384 374 695 1999 10199 1295J9 <180.; 

FT-SE-A 350 15214 +08 1SOO£ 15301 15184 15T9J 494 640 17.17 5039 117747 1779: 

FT-SE Sntflte 181440 -03 1819.13 182044 18Z742 178094 &2B 440 2019 4371 140737 299441 

FT-SE SreaBlft n to* Haiti 178544 -03 179L11 179747 180000 178593 345 932 2394 4498 138847 288071 

FT-SE-A ALL-SURE 151047 +07 150099 151938 150746 19)085 348 6.75 1742 <008 119078 1784.T 

■ FT-SE Actuaries All-Share 

Dsy* Year R». Eren. WE Xd atf. Total 

Sap 30 dip* Ssp20Ssp2BSspZ7 ago yW»jid%aflo id R*w 

10 MOSUL EXTRACTlOltna 285047 +1.1 2821981^85088 2B4447 285940 347 018 2449 81.42 106074 289291 

12 ExttGM Wusbtasm 395035 -07 398340 407345 <02018 313250 395 SIB 2348 9844 109142 410748 

15 Ofl. Hn rat MCT 258144 +14 254041 257070 258188 232040 345 542 2148 8540 106141 278248 

16 08 Evokiraflon A PnxYll) 191140 +04 190478 192573 190546 193390 2.17 2 t 3893 110546 200043 


10 MOSUL EXTRACT10lt{1S) 3t 

12 Extrscwe huus*7tes(+) 3£ 

15 00 Integrated® 21 

16 08 Eiflaroflon ft tedjtll IS 

?0 GDI 8UM»CnBSISt28q U 

21 BuMng & ConabuctlooOT II 

22 Buhfeng Mato ft Moreta(32) II 

23 ChendeateUfl Z 

24 nwsMad ksAHtrUbda r> 

25 Peetrwuc ft Bad EodpPO II 

26 Enfllnaflrtio(7(8 71 

27 Entfneerifla Ystdcw(l2} 2! 

28 printing. Pspsr ft raqC26) 21 

a Team ft AppareipiB II 

30 COMSUMBI 60005(97) 2i 

31 BiemriasfiT] 21 

32 Spins. Wines ft OdorsfiO 21 

33 Food Manolaau«a(23} 3 

34 Houssdold Goodsna 21 

36 rtoaHi Can*2l) 1! 

37 PtBsinaeaide««02| 3 

38 TotHCCofll * 

40 SStVKES(22)1 >< 

41 OWniuBindll x 

42 Leisure S Kote«25) X 

43 Me(ka(39) * 

U Rrtatos. FoodfIS 

45 (Wafers, CsnsraA+a 15 

«8 Support Sen+ces<+r) 14 

49 IransportlOJ +* 

51 Q8w Servlcia ft BustoessW 12 

60 imilTlESpG) 23 

62 EtodrtcftyfiTI ** 

w Caa DBsttttfonO 
66 Tttamnunmkm(4) 13 

68 WJte>(13) 1? 

69 WH-RMA*CULS(53g? 19 

TO FBUHCULSnOQ 21 

71 Sa**10* * 

73 tonfaxerm « 

74 LWr ASSfiWOW “ 

75 Menrtam BarioW 28 

77 Olticr Pnand*?<1 « 

79 ftnpciiy(<l1 14 

bo mwsnffitr Tnusr s{taq n 

S-j FT-Sf-A AU-SHARQ96® IS 

■ Hourly rnovoments 


+04 187448 190041 
-0.7 1040.05 106399 
+01 182440 185846 
-02 234542 236846 
+07 177279 181440 
+01 189094 102243 
+02 181219 182286 
♦1.1 228088 228223 
+19 2787.19 281941 
158741 159744 

+1.1 2673.17 2E8444 

215049 2183.40 

♦19 276242 27B8.41 
+03 227144 227-449 
+08 230948 238048 
-09 181238 183018 
+14 299258 296232 
+34 353890 354439 
+08 187646 190194 
-04 2521.43 255341 

204696 206544 

+08 278074 281067 
+14 1697.27 171010 
+06 180161 163044 
-06 1485.15 149098 
+22 217049 222549 
-OS 128348 126849 
+07 232S46 236445 
+09 2<0341 245443 
+24 192148 198174 
401 182747 185060 
-04 168141 184849 
+08 162220 15+396 

+07 210183 213038 
+08 Z7304A 277844 
+1.4 118543 1208.76 
+14 225647 231092 
-08 284221 269445 
-02 1S1127 183026 
-Qg 147044 148002 

+03 274268' 

+07 150009 


233722 235240 
243940 2041.90 
192646 2156.10 
194027 214090 
181211 183030 
163085 181015 


2767.60 274054 257140 
151076 150746 150045 


495 013 2343 8144 95074 223288 

3.77 025 501S 28.18 81142 19B9L1U 

494 002 2444 5015 859.71 238342 

198 448 2848 76.13 103742 25BOC 

013 021 2105 8060 91748 223147 

346 644 1794 5746 929.64 22B348 

118 493 2140 4023 103749 2011.17 

444 246 8145 7346 111897 281696 

394 032 2198 7070 110026 304591 

443 692 17.70 4049 89743 282496 

4.40 743 103210296 93298 304078 

448 794 1030 8193 06599 248442 

490 696 1642 8946 93031 322593 

446 028 1490 70 41 95742 280044 

101 748 1020 5079 . 82024 290414 
115 033 42.13 3033 92492 190013 

4.43 7.19 169912018 95292 325541 

Q93 899 11.44 2T7.07 83029 471088 

327 041 1081 47/41 92013 2207.77 

944 7.10 1086 87.72 88081 331943 

042 4.75 244S 5148 100039 23BOB2 

2.47 035 21.75 6094 97023 5349.11 

176 924 1138 51^ 103298 191420 

328 069 1056 3749 88049 191047 

245 055 1004 3120 89729 198043 

178 069 2038 5081 87126 2B0040 

172 223 7069 2100 107744 13B058 

420 003 1016 7142 90142 Z7B243 

3.78 10.14 11.76 8146 100023 Z7S4J4 

006 * * 6076 90172 230077 

428 016 1494 5022 82391 24B042 
0241240 052 6925 927.18 212070 


406 031 12.46 8005 841.78 2737.13 
4471098 11921144* 82996 3B0145 
063 083 1193 5395 52496 189341 
5.58 035 144012011 88045 292137 
16011.72 343 8445 84899 378149 
490 047 1175 8116 97038 227036 
4.12 427 2992 3940 83018 188088 
124 196 5141 5149 924^8 318431 
348 075 1792 49.08 1189.7B 1764.11 


M MW 

2S anon 

5/9 234098 
27/4 T7BL40 

2/2 1806.08 
8/2 188822 
24/1 179010 
8/8 220342 
2/2 177279 
4/2 183048 
2/2 173695 
8/8 200034 
18/3 2BZ1.19 
V2 190731 

24/1 240444 
19d 307147 

z in anon 

19/1 209940 
IB/2 238046 
19/1 1572.17 
20/8 2M1J0 
7/1 312074 
ian 1864.19 
2/2 246226 
17/2 1664.16 
17/2 2S75.TI 
19/1 151144 
4/1 100341 
2/2 147070 
3/2 216440 
10/2 113082 
2/2 210042 
30(8 2024.12 
7/1 100440 
2/2 1884.68 
3/2 158071 


4/2 20M36 
*12 2815J7 
M/1 115182 
19/1 218081 
2/2 263058 
4/2 17S243 
4/2 144131 


3V3 280291 5/9/94 00030 18/2/86 

12/7 410745 2/2/M 100090 3U12/B5 

30/3 276048 5«94 98230 2DI2SB 

31/3 3044.10 8/8/90 85030 28/7/88 


24/8 221248 2/2 194 98010 14/l/BB 

30/9 217540 18/7/87 53030 9/9/32 

21/6 238322 24/1A4 90440 9/9/92 

28/B 259042 8/8/94 97050 14/1/86 

29/9 223147 2®M 90440 21/1/88 

8/7 22SU0 4/2/94 08080 29^/90 

2 « 2011.17 2/2/34 90240 T OH 1/87 

28/6 291096 8/8/94 00060 14/U8B 

4/1 304061 18/3S4 67130 14/1/86 

29/9 232540 2nO/S7 BB040 24W/B0 

24/6 300600 22/12/92 9P40 1V1/88 

24/6 240442 19/1A4 00240 14/1*8 

24/6 348740 11/5/92 967J90 14/1/88 

24/5 2B0044 19/1/M 94010 14/1/86 

29/9 2H4.14 18/2/M 927.10 21/1/88 

8/7 20*740 2B/9/BT 97240 21/1/86 

1/6 410840 14/1/92 96170 13/1/86 

24/6 473943 2912/93 99200 9/1/86 

27 K 2207 J7 19/1/94 64440 28/1/86 

22/9 381631 2/2/94 98050 21/I/8B 

6/7 238042 17/2/94 97040 2VUBB 

27/6 334011 17/2/M 97020 9/1/96 

25/4 223020 28/1 A3 01740 21/1/88 

29/9 193444 2501293 870.10 5012/88 

30e 188043 2/2/M 93600 1/2/91 

24/6 280646 3/39+ 90000 14/1/86 

21/4 245030 16/7/87 08110 14/1/86 

24/6 Z7B233 2/394 80240 11006 

24ffi 278474 30/8/M 68030 7/1/91 

24/6 237030 16/12/93 9M40 S/12/96 

1/6 348140 29/12/93 80240 3/IIV86 

27/B 20079 3/2/94 924J0 1/5B0 

2+^ 187036 2/2/94 6149 13/12/74 

24S 2737.13 4/2/94 97240 230X8 

V7 380159 4/2/M 05000 23/1/B6 

24/9 162420 29/12/88 87040 25»B2 

IX 202147 19/1X4 987 JO 23/UK 

1/7 3701 29 2/2/M 90240 27/1/86 

4/7 227955 4/2/94 8SO30 1/10X0 

21X 213240 5/9/89 71040 16/9X2 

27X 310441 3394 97740 14/UBB 

24/B 1784.11 2/2X4 B142 13/12/74 


W gh/day Low/day 


•0250 3/UV96 
69030 7/1X1 

99490 9/12/96 
80250 3/10X6 
924JO 1/5X0 
6149 13/12/74 
97120 23/1X8 


— ngop b 2995 5 awi«L» juvu i*w> ■ — - — 3026.3 2989.0 

FT-SE 100 Sir i 3494.1 3497.4 3402.4 3482.4 3491^ 3489.4 34011 34004 34802 

FT-SE MM 250 WOJ 1503.7 1511.9 15103 1511^» 15105 15002 15118 1521.4 15055 

H-S6 A 3 SO ’f 17,1 

TmecJFT SE 100 t+fllv OOpm LW 

I FT-SE Actuaries 3®0 IlKhtffiry ***^00* 11.00 12X0 1100 14X0 1_SXO ie.10 Obm Ptwiom Change 

— ^fr 974.4 974.T 9T2A W* 9717 0716 9715 VM »1X UsT 

BMoaensircn ZMT.i 2920X 2926.9 29217 29216 2923.5 29449 2949.8 290SX +442 

1961-3 1852.1 1855X 1855r4 1855.4 18S14 18519 1851.0 18529 1858.3 -6.5 

&jr ** "2? S enWiw Mefian or araw date wtoe Baute aectlon or group dale vatao Etr«ty tectort Of group dt*te.,vi too 

gggjEj£SS S ! L!? r n"" l P LkU, 250 W Bw T iuffi 31/12^5 1412.60 Water 29^2^8 1000.00 UKCtettfiett 31/12X5 lOOOC 

rf 3E lea flefum todto* 31/12X5 662X4 Non-Rnandafa 10/4/B2 100.00 Indn-Unkad 30/4/82 100XC 

VTSLSnolCap 31 ptSidO 31/12/83 1000.00 FT-SE-A AH- Share 1CW62 10100 Debs and Loans 3l/i2fl7 10&0C 

17 S£SnulWWO>n»Trts ISfiO aeOWW 31/12X0 1000.00 Afl Other 31 /1 2/85 1000-00 

FT- St Mid 250 31/IJ» '“iT.Jrl.aao Mem. ora cnrtlttd by Die London Stack Etttanoe m* rtr FT HE Aflueraa «n«. torts, rod tt FT-SE &nraCsp btt» usoompte I by lira 

Ik,, ft-SE mu 250 ■ nd t fl *^' S ^*‘S!l!!S.^u£2£SsB^d3Nci3vieAcwBriei intta asnModsM al iswmJ rates. ©The tamratand Stock aabmealSiatMM Kingaam raid 
™ UMoabflrt" BpnhrtsW" i»iaieBBiS^*FT-SF rod •FooBW bp JbW trad# narie* rod aanxe marts «rf ■» lendon sucklxtftange and The F»*dM TWe* 

LTM AuiMi* Tha Kl/M CpApltt- T socv ' 


} ^ *- 


Frumumuticb 

w.ner 

Banks 


9706 971X 

2923.5 29449 

1851 X 1851.0 

276G.9 _ 27912 


dele value EQuity dftCtol or 

29/12/88 1000.00 UK G*a inefiett 

10/4X2 100.00 Indeor-Unked 
10/4/62 loaoo Debs and Loans 
31/12X5 1000-00 


dose Proutoue Change 

971.7 9B1X -9.9 

2949.8 2905X +442 

18523 18518 -6J 

2793.1 277CL3 +22X 

Base Bate 
icton or flrouo date utfaie 

inefiett 31/12/75 lOOLOO 

feed 30/4/82 100X0 

1 Loans 31/12/77 100.00 


Mixed 
trend 
in Rees 


■ FT-SE 100 BBTEX FUTURES flJFFE} E2S per ftB index port (AFT) 

Open Sett price Change Hgh Low EsL voi Open bit 
Dec 2999X 304241 +48.0 3044.0 299&0 18418 52968 

Mar 3066X +45X 0 2165 

■ FT-SE WD 250 INDEX FUTURES (LffTE) E10 pet luK Index poirt 

Dee 3490.0 3515X +10X 3510.0 3490.0 60 3880 

■ Fr-BgMlP 280 WOEXRmffiES(OMLX) CIO per luitodex point 

Oct - 351 50 0 

Al open k o o fon l dgures ate lor praulous day. t Exact veksna tfm m . 

■ FT-SE 100 INDEX OPUOM (UFFE) f3Q22) CIO per ftft index point 

2850 2900 296D 3000 3050 3100 3150 3200 

CPCPCPCPCPCPCPCP 
Oct 186*2 9 143*2 14 163*2 23*2 H 38*2 41*2 63*2 22 94*2 lllz IX 5 178*2 

Nov 209 23*2 189 32*2 133 45* 2 101l2 64 73 85*2 52 115 35 149 22 187 

Dec 22112 33*2 IK 48 161 62*2 122*2 83*2 94 10* 72*2 133*2 52 163 37*2 200 

Jan 249 50 20 62*2 179 77*2149*2 96 118*2117*2 95*2144*2 73*2 173 SB 207 
JifTt 272 96*2 212133*2 161*2182*2 117 240 

Ctt 1300 PMS 1512 

a EURO STYLE FT-SE 100 tePEX OPTION CUTE) CIO per tuB todex point 

2075 2S2S 2975 3025 3075 3125 3178 3225 

Oct 166*2 12 124 19*2 94*2 29*2 54*2 49*2 32 86*2 17 112 9 152*2 3*2 196 

No* 189 26*3 191*2 38*2 118 54* 2 88*2 74* 2 83* 2 99*2 43*2 129 28*2 163 17*2 201*2 

Doc 205 « 199*2 54 138 71*2 1» 92 M 116*2 82*2144*2 44 175 S 209*2 

Mr 217* 2 80*2 158 118*2 109*2166*2 72 226*2 

Jurf 202 105*2 293 142 151*2185*2 100 239 

IbOi 1.106 Plria 1.BS4 * Uncfertytng Max Mbs. Prurtuaia sftown an bued an Mteamaat prices, 
t Lang dttd sgty ru a rt bt 

■ EURO STYLE FT-SE ROD 250 MDBC OPTION (OMLX) CIO per fufl index point 


Sooth Wales Electricity was 
the biggest casualty in a mixed 
electricity sector after the 
group said it had ended its 
share buy back programme 
ahead of its “closed period'' 
which starts on October 7. 

Companies and their direc- 
tors are not allowed to trade in 
their own shares for two 
months prior to reporting fig- 
ures; Swalec is scheduled to 
announce interims on October 
7. Yesterday Swalec bought in 
1.4m shares at 786p bringing its 
total purchases up to Its 
intended level, 7 per cent, 
ahead of the closed period. 
Swalec has shareholder author- 
ity to buy up to 10 per cent of 
its own stock. 

At the dose of trading Swa- 
lec shares were 26 lower at 
763p, their lowest level since 
mid-August. Swalec embarked 
on its buy-back programme on 
Septembers. 

Southern Electricity, on the 
other hand, was the best per- 
former in the sector, the shares 
climbing 11 to 724p after a buy 
recommendation from Nat West 
Securities. NatWest’s utilities 
team described Southern as 
“way ahead of the pack” on its 
cost catting ability. NatWest 
said that it believed Southern 
to be committed to share-bay 
backs and to full demerger of 
the National Grid, with Grid 
demerger enhancing the pro- 
spective dividend by 2.5 per 
cent and buy-backs by almost 
10 per cent 

Gas in demand 

The see-saw performance by 
British Gas shares over recent 
sessions continued yesterday 
with further dividend upgrades 
by some of the market's lead- 
ing broking houses driving the 
shares sharply better and 
recapturing most of the fall 
that followed Thursday's 
important strategy meeting. 

At the close Gas shares, 
again the heaviest Individual 
traded stock in the market, 
were 8% higher at 298p on 
turnover of 15m. 

Firmer oil prices, plus Talk 
of renewed US and domestic 
buying interest helped BP 




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Margin trading Fac£ly 
CompeAfiv* Prices 
DoBy Fax Sanriea 

tot 071-931 9188 
Fax:071-9317114 


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Marta- Oar Southwark Bridge 
Lrabm SE I 9HL, England. 

Tet (+ « 7(1 0733795 
Fax. (+4471)8733931 


FINANCIAL TTIIB 
Sm h l B I 


NEW HIGHS AND 
LOWS FOR 1994 

NEW MOHS <00. 

BRBMEMES (T) Qfeb* Mm. DSITOBUTORS 
ID Frfbar Prara, CLECTRMC ft B£CT SOUP <4 
Bidpln A, NoUa Pit. ENQMB3BMQ (1) BrtL 
SM EXTRACTIVE (NOS (8} OoomfanM 
Oanoor. Itainniy. knpala Radnum. Ivanda VU. 
ttmaonam. Son OmAl Western Areas. 
INVESTMENT TRUSTS (0 LEISURE ft HOTELS 
p) Nerthem Crw. oem. 00. EXPLORATION ft 
PHOO (I) A—ncn. OTHER HWft ft BrjgNft fl) 
PfcntsOon A Oen, TEXTILES S APPAREL H 
Biftam. toM TRANSPORT |t] Qo-AlMM 
AMERICANS (t) Alophany ft WM 
CANADIANS (1) TVX Goifl. 

NEW LOWS (138). 

<ULTS 01 BREWQ8ES (a ParecKxan, Secmari 
ft H — eaitl s. BUUSM ft CNSIRN (19 Bate. 
Berras. BoSway- EBC. Uk<B U. Oo &4pc Pit.. 
Do A MV, LnviA ri/JL Tqf Homaa, Tvylor 
WoodremA VMson Bowdsa Wtoon (O. Wt+xwy 
ffSL BLDQ I4ATLS A MCHTS <3] Capo. 

RubaM Tarmac, CHMCALS |8) BrtL Vka. 
CounsMs, Mcfcao n a*. Mandere. Pwatorp a 
WoNngton. DBIRSUTDRS (B) Ccmw, Df+onw. 
Evans KsMiaw. HamNc lrf9gasa. Whnl esa l a 
FWnos. DIVStSIRB] SrfDLS (Zj Mo. Suar. 
EIECTJWC A B£CT SOUP (7) ASEA B. 
Amend, BICC. Do Cap. FbL IDNpc Cnv. 2020. 
Bowmerpo, Oaatam. Stamana. B4QlNEERmQ 
fl D a d a n ham. Clyde Dteaara. Oynsrad IrA. 
Hunang. Neootnics Tech, Wharman. POOD 

MANUP C0 Dam feML. Narmam. Uitoara. 

HEALTH CARE » AAH. OwnacTa. ScrtoA 
HOUSBKHi} GOODS (1) Connaal Partrar A. 
INSURANCE (X Farartueh, Herth (CE), 

Lowndes Lambert SedgtricK. RTVSnSTT 
TRUSTS M MVB11BIT OOtmUEES (1) 
Wak+nma*. LBSURE ft HOTOS (4) Alpha 
Ahpon. Break for die Border: Hk-Tec Sporta, 
Priwn, (JPE ASSURANCE (1) TraneaBandc, 
IBtA ra Bertmor Index. Rortamooth & 
Swdertanrt WMOa UOKHANT BANCS P) 
Bartnga 8pc 2nd Rrt, Wartup (SO). OIL 
EXPLORATION ft PROD (1) North Saa Aaaets. 
OTHER RNANCtAL (3) Kkig ft 8tanm. MAI. 
Oceana, OT1ER BERKS ft BUBNft (1) Photo 
-Ma. PHARMACEUnCAU 86 Now Nerttk a 
Protaua ML PRTN01 PAPER ft PACNQ R tot- 
Thornton, nyeu. RPC. SkSaw. Sr fvea, 
PROPERTY (IX RETAILERS, QENBML (7) 
B a aN w Ra. Cowta.Rne Art Pavai. Rytep 
FtoaarA MR, Marnlea (J). Snedi (WH), 

SUPPORT SBWS (0 Mtodgw. SW-Pha. 
TSCIUB ft APPARB. M MasamSa WOrkwear. 
BrackanbrtdDA (Kcrfwda. Shanl. TRANSPORT (1) 
Ttoboa ft Button. AMBSCANB (B) Haabro. 

Mabry. Man* Lynch. Pemzn*. Rep NY. Rvkwea 
ML 


move up 6y> to 399%p on 11m 
traded. Shell, still helped by 
the recent upgrade by Nomura, 
jumped UK to 698!&p. 

Gestetner shock 

Gestetner reacted dramatic- 
ally to the news of a £6.lm loss 
in the futures market, diving 
23 to 123p as analysts took a 
gloomy view of the immediate 
profits outlook. 

The feeling was that Gestet- 
ner is wiping the slate clean in 
one go but at a big cost to 
earnings. Plainly the futures 
loss will cut a substantial 
swathe through Gestetner‘s 
cash-flow if profit estimates of 
£ 2 lm pre-tax for this year are 
anywhere near the mark. 

Shares in Manchester United 
jumped 10 to 695p as the mar- 
ket appreciated the sharp rise 



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2150 

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2003 

10.15 

2098 

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1704 

1995 

1400 

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17.79 

19.10 

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10.10 

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1000 

1900 

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1858 

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2003 

7699 

TB06 

1900 

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1909 

1030 

3060 

1606 

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2030 

2903 

2955 

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in frill year figures from last 
season's UK premier league 
champions. 

News of a four-for-one bonus 
issue was also well received by 
investors. 

HSBC were under pressure 
throughout the session, with 
one of the market's leading 
agency brokers said to have 
been a persistent and sizeable 
seller of the shares which 
closed a net 13% off at 682Kp. 
NatWest put on 11% to 467 %p 
after strong support from UBS. 

Merchant h ank s dropped 
heavily with institutions fret- 
ting about the impact of the 
recent turbulence in interna- 
tional markets on dealing prof- 
its. SG Warburg lost 11 to 670p. 
Smith New Court, the inte- 
grated securities house eased 3 
more to 374p. 

The two English generators 
came up with further good 
gains with the market still 
adopting a positive position on 
the two stocks after Thurs- 
day's news that the govern- 
ment intends selling its 
remaining 40 per cent stakes in 
February. National jumped 11 
to 461%p and PowerGen 12 to 
526%p. 

YJ Lovell, the building 
group, was among the market's 
worst performers, the shares 
plunging 10. or over 13 per 
cent, to 65p. 

Shares in sports wear and 
shoe company Hi-Tec Sports 
tumbled 33 to 45p, after it said 
the six month period to Janu- 
ary 1995 “will still be tough” 
and trading in that period is 
“ unlikely to have a significant 
impact on operating profits 
until 1995." 

The company reported a 
£7.11m interim loss against a 
profit of £780.000 a year earlier. 

Hotels group Forte continued 
to celebrate Thursday’s better 
than anticipated interim fig- 
ures and the shares advanced 
another 2 to 224p, after trade of 
2.4m. However, NatWest Secu- 
rities remains a bear of the 
stock and advised investors to 
reduce holdings saying “The 
corporate strategy may have 
started to come together but 
the debt mountain has yet to 
be tackled, despite the under- 
performance, on fundamentals 
the shares remain overvalued." 

Diversified industrial Tomp- 
kins moved up strongly in 5m 
shares traded, rising 8 to 222p. 
The persistent talk among ana- 
lysts was that the company 
was about to tee up some sort 


■ CHIEF PRICE CHANGES 
YESTERDAY 

London (Pence) 

Rises 

Badgeriine 125 + 5 

Bank of Scotland 207V: + 9V: 


Blenheim 
Bo water 

British Airways 
Bulgin (Ord) 
Darby 
Renishaw 


246 + 11 
472 + 17 

361 + 17 
66 + 7 

94+4 
288 + 11 


Bans 33-6 

Betierware 37-3 

Bristol Scons 185 - 13 

Brown (N) 253 - 10 

Caradon 268 - 8 

Gestetner 123 - 23 

Heath (CE) 254 - 10 

HI -Toe Sports 45-33 

Hi dong Estate 78-15 

Lovell (YJ) 65-10 

Menzies (J) 524 - 27 

Ricardo 143 - 10 

Rothmans Uts 381 - 17 

Royal Doulton 288 - 17 

Yule Catto 274 - 13 

of takeover. 

Both Reed International and 
Pearson moved up smartly 
among publishers but trading 
volume was miserably thin. 
Reed gained 14 to 767 and Pear- 
son put on 7 to 582. United 
Newspapers dipped 3 to 488p, 
despite a buy recommendation 
from Kle inwort Benson. 

Elsewhere in the media sec- 
tor, exhibitions group and one 
time stock market high-filer 
Blenheim, rose strongly, clim- 
bing 11 to 246p followings news 
that the board and big share- 
holder Generate des Eaux (now 
up to 15.1 per cent) have been 
buying the company's shares. 

The idea of an outright bid- 
ding war for VSEL lost momen- 
tum yesterday with the stock- 
market's two most fancied bid 
candidates. British Aerospace 
and GEC taking no immediate 
action. VSEL eased 18 to 12i0p 
on turnover of L3m. 

Some traders doubted 
whether GEC - up 3 to 2S2p - 
would want to get involved in 
a contested bid. BAe recovered 
part of yesterday's 15 fall, 
improving 4 to 493p. 

GKN shares were a feature 
of a buoyant Footsie, jumping 
11 to 6l3p in 1.2 in trades, 
helped by the generally bullish 
tone of a mid-week presenta- 
tion to Scottish analysts. 

Transport shares shared in 
the general recovery. BAA rose 
14 to 488p in low turnover 
while British Airways rose 18 
to 362p. 


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14 


FINANCIAL TIMES WEEKEND OCTOBER 1/OCTOBER 2 1994 


FT MANAGED FUNDS SERVICE 


























































FINANCIAL TIMES 


WEEKEND OCTOBER 


1/OCTOBER 2 1994 



ing data lor Hie monitoring oi targets, ana Die mr mu iidiiuung ui waaic imumbihb. i<*k *•**■«» 


















































































































































































































































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v 






FINANCIAL TIMES WEEKEND OCTOBER 


AMERICA 


Window dressing takes Dow higher 


Wall Street 

US stocks made progress as 
institutional investors adjusted 
their portfolios on the Iasi day 
of the third quarter, unite* 
Frank McGurty in New York. 

By 1pm. the Dow Jones 
Industrial Average was 14 46 
better at 3.869.09, while the 
more broadly based Standard 
& Poor's 500 was up 2.54 at 
464.77. In the secondary mar- 
kets, the American SE compos- 
ite was 1.0S ahead at 457.55 
while the Nasdaq composite 
added 3.48 to 762.82. 

Volume on the Big Board 
was moderate, with 166m 
shares traded by early after- 
noon. Advancing issues held a 
five-to-four margin on declines. 

The day's main economic 
news provided a favourable 


background for fund managers 
to put “window-dressing" on 
their positions going into the 
final three months of the year. 
The activity tended to favour 
stocks which have performed 
well over the third quarter. 

The monthly survey of Chi- 
cago purchasing managers 
showed fewer manufacturers 
were paying higher prices this 
month than last, reversing the 
recent trend. With the finan- 
cial markets on alert for tight- 
ening of monetary policy, the 
development lifted bonds dur- 
ing the morning, and buoyed 
sentiment in the stock market. 

An earlier report set up no 
obstacles. The Commerce 
Department said that personal 
income last month had risen 
by 0.4 per cent, and consump- 
tion by 0.9 per cent Both read- 
ings were in line with fore- 


casts- But any enthusiasm was 
tempered by conflicting reports 
on progress achieved by US 
and Japanese trade negotia- 
tors. with the deadline for com- 
pleting the talks approaching. 

The Dow opened in negative 
territory but quickly scram- 
bled on to the plus side. Philip 
Morris was in particular 
favour, climbing $1% to $61 on 
reports that the company was 
negotiating the sale of Its Kraft 
food-service bnsiness. 

Among the cyclical Cater- 
pillar advanced $1 to $55, while 
3m tacked on 5% to $55%. 
Deere forged $1% ahead to 
$69%. 

Chrysler jumped $1% to 
$45%. The cash-rich carmaker 
had revealed plans to increase 
its capital spending over the 
next five years. 

General Motors added $V« to 


$45% in an early response to 
reports that striking employees 
at a Michigan assembly plant , 
had agreed to return to work. 

USG slid $i'/« to $20% after a 
rival. Georgia-Pacific, filed a 
lawsuit charging the company 
with infring in g on patents for 
gypsum wall board. GP added 
$% to $78. 

Anheuser-Busch dropped 
$1% to $50% after Goldman 
Sachs struck the brewer off its 
recommended list, citing an 
expected earnings shortfall. 

On the Nasdaq, technology 
stocks were generally stronger, 
though most issues did not 
stray too far from to their 
opening values. Among the 
best performers were: Paramet- 
ric Technology, up $1% at $33: 
DSC Communications, $1% 
ahead at $28%; and Informix, 
$T/. better at $27. 


Canada 


Toronto recouped some earlier 
losses, but the TSE-30G compos- 
ite Index was still 428 lower at 
4,357.67 at l pm in volume of 
26.6m shares. Among active 
issues, Soctiabank was C$% 
higher at C$26'/* and Bank of 
Montreal dipped C$14 to 
C$232%. 


Brazil 


S&o Paulo rose 2.1 per cent in 
heavy trade as investors 
remained optimistic that the 
former economy minister, Mr 
Fernando Henrique Cardoso, 
would win Monday's presiden- 
tial election. The Bovespa 
index rose 1.131 at 55,557 at 
1300 local time in volume of 
R$263.6m ($308. 7m). 


EUROPE 

Zurich preoccupied with Swiss Re and UBS 


| FT-SE Act 

caries Share indices 



Sep 30 

Hourly changes 

THE EUROPEAN SORES 

Open 11.00 1150 1200 1350 14.00 1650 Qom 

FT-SE EurotacKl 00 
FT-SE Evokack 200 

1326.60 1326.19 1325.42 132459 132250 
1369.15 136850 136858 136852 136757 

132096 

136802 

1317.19 131853 
1363.18 135959 


Sep 29 Sep 28 Sep 27 

Sop 28 

Sep 23 

FT-SE Euracraek 100 
FT-SE Euntrack 200 

133058 1346.01 134034 

1375.17 1388.74 138159 

133955 

138089 

1343.73 

138656 


h*® iooo csmnakHoMtar 100 - vbtav. 200 - wav um*r- 100- wises 200- lmeatPasa 


Senior bourses came 
cautiously, and in some cases 
uncomfortably, to the end of a 
doubt-ridden week, unites Our 
Market Staff. 

ZURICH was lower in heavy 
volume, with attention domi- 
nated by developments at 
Swiss Re and at UBS. which is 
heading for a showdown over 
control with Mr Martin Ebner 
and BZ Bank. The SMI index 
fell 23.6 to 2,534.4 taking the 
week's fall to 2.9 per cent. 

UBS bearers finished SFr5 
lower at SFrl.200 and the regis- 
tered stock lost SFr21 to SFr303 
after the bank's announcement 
late on Thursday that it 
planned to create a single 
bearer share to curb the power 
of predators. 

BK Vision, the investment 
company controlled by BZ 
Bank, fell SFr50 to SFrl,400. 

Some analysts suggested 
that falls in Roche certificates, 
SFr95 lower at SFr5,785, Zurich 
Insurance. SFrol at SFrl,170. 
and Ems-Chemie, SFrlOO at 
SFr4,060, could be attributed to 
expectations that Mr Ebner 
might soon reduce his stakes 
in these companies to raise 
cash for the UBS battle. 

However, others noted 
switching from Zurich Insur- 
ance into Swiss Re on the sale 
of its direct insurance holdings 
to Allianz of Germany and 


Winterthur, and plans to con- 
centrate an reinsurance. Swiss 
Re. rewarded by analysts with 
earnings upgrades, rose SFr49 
to SFr626 but Winterthur 
dipped SFr5 to SFr655. 

FRANKFURT, closed for the 
Unity day holiday on Monday, 
incorporated Thursday's post- 
bourse losses during the ses- 
sion. But it ran into more trou- 
ble in the afternoon when the 
Ibis-indicated Dax index hit 
1,984.65 before recovering to 
close 13.78 lower over 24 hours 
at 2,002.30. down by 4.3 per 
cent on the week. 

Turnover rose again, from 
DM6.7bn to DM7.6bn. and bro- 
kers were beginning to pat 
some credence behind the sto- 
ries of US selling. Mr Hans 
Peter Wodniok, at Robert 
Fleming in Frankfurt, said that 
there were strong indications 
of US selling on worries that 
the FDP, or German liberal 
party, may lose its place, in this 


month’s polls, and that a red/ 
green coalition could take over 
from the c u rrent combination 
of conservatives and liberals. 

At corporate level, Allianz 
dropped DM7t) to DM2J40 fol- 
lowing its direct insurance 
acquisitions from Swiss Re. 
BMW recovered DM18.50 to 
DM7KL50 after Thursday's 5.2 
per cent drop following the 
recall of 57,000 325i models in 
the U.S. 

At Merck Finck in Dtissel- 
dorf, Mr Eckhard Frahm's 
check on monthly performance 
of the Dax constituent put a 
dutch of defensive stocks at 
the top of the defensive char ts: 
Sphering (recovering from wor- 
ries about its product lines), 
Karstadt, RWE. Dresdner Bank 
and Viag. 

Over nine months, the out- 
performers were cyclicals: 
BMW, Lufthansa, Hoechst, 
Thyssen and Preussag, most of 
which ramp in for selling over 


the past two days. 

PARIS threatened its 1994 
low. the CAC-40 index bottom- 
ing at 1,856.52 before recover- 
ing to close 3.07 higher at 
1,879.25, off 2.5 per cent on the 
week, in turnover of FFr5. 08bn. 

Alcatel stabilised after 
Thursday’s horrors, closing a 
token 60 centimes higher at 
FFr489.30. The market liked 
the results from Paribas, Saint 
Louis, and Peugeot which rose 
by FFr6.80 to FFr324, FFr57 to 
FFr1,457, and FFrll to FFr784 
respectively. 

MILA N finished lower as 
some disappointing interim 
results added to worries that 
the budget could face a bumpy 
passage through parliament. 
The Comit index fell 11-20 or 
L6 per cent to 679.77 but was 
still 1.6 per cent higher over 
the week. 

Benetton was marked Lid 50 
or 52 per cent lower at L21.000 
in response to disappointing 
results. Ras fell 12200 or 8.6 
per cent to L23.500 when it was 
readmitted after a trading sus- 
pension on worries that the 
SFri.5bn price that it is to pay 
for Elvia, the Swiss insurer, 
was too high. 

flat gave up L60 to L6.680 in 
spite of the better than expec- 
ted first half figures after the 
market closed on Thursday. 

Among the telecoms stocks. 


Stet fell L119 to L4£35 and Stet 
gave up L75 to L4.400 on profit 
taking. 

AMSTERDAM was easier but 
off lows after reports of the US- 
Japanese trade agreement as it 
tried out its new dealing sys- 
tem for the first time. The AEX 
index gave up 1.64 to 402.27 for 
a 02 per cent fell on the week. 

Aegon was up 20 cents at 
FI 100.20 after announcing the 
sale of part of a UK insurance 
uni t to Independent insurance 
Group. 

Wolters Kluwer rose Fl4JjO 
to FI 123.50 and VNU lost 
FI 2.50 to FI 188.20 which, bro- 
ker said, suggested switching 
in the stocks. 

Chemicals were weak, with 
Akzo Nobel down FI 3.80 at 
FI 204.10 and DSM, after two 
days of briefing analysts, los- 
ing FI 4^0 at FI 147.50. 


Written and edited by William 
Cochrane and Mchael Morgan 


SOUTH AFRICA 

Shares posted steady gains as 
currency factors and window- 
dressing on toe last day of the 
quarter pulled stocks higher. 
The overall index finished 40 
firmer at 5.676. industrials 
were 27 better at 6,294 and 
golds collected 14 to 2,441. De 
Beers rose R1.75 to R101.75. 


Eerie parallels as Dow 
moves into October 

Frank McGurty is struck by similarities with 1987 


W ith the seventh anni- 
versary of Black 
Monday less a month 
away, at least one influential 
Wall Street pundit is struck by 
the similarities between the 
autumn investment environ- 
ments of 1987 and 1994. 

Throughout the late sum- 
mer, when the bull market 

appeared to have regained its 

vigour, Mr David Shulman was 
steadfast in his prediction that 
stocks would complete a 10 to 
12 per cent correction which 
began in February. The Salo- 
mon Brothers analyst now is 
more convinced than ever, 
with the spectre of higher 
interest rates pulling share 
prices off their September 
highs. 

The parallels he draws are 
eerie. The economy is strong; 
the dollar weak. After a spring- 
time plunge, the Treasury mar- 
ket slumped anew last month. 
With bond yields climbing, div- 
idend yields are still well 
below their historical levels. 
Meanwhile, mergers and acqui- 
sitions are propping up share 
prices in a range of sectors. 

These forces are as evident 
this autumn as they were lead- 
ing up to October 19, 1987, that 
fateful Monday when panic 
selling scythed 508 points, or 
22.6 per cent, off toe Dow Jones 
Industrial Average. 

Mr Shulman observes that 
seven years ago "there was 
insufficient capital simulta- 
neously to fund a global bull 
market and an economic 
expansion. Tbe tension was 
resolved by a capitulation in 

fho financial mar kets " 

Any capit ulatio n this year is 
likely to be much less devastat- 
ing, toe New York analyst con- 
cedes. "A somewhat less-ex- 
tended market should help 
temper the potential downside 
risk." Still, he predicts that the 
bellwether blue chip Index will 
revisit the 3,500 level before it 
again sees toe likes of its Sep- 
tember 15 close at 3,953. 

Not every analyst on Wall 
Street shares this view. Ms 
Gail Dudack at SG Warburg is 
standing by her rosy prediction 
that the Dow win hit 4^00 by 
the year-end. But even Ms 
Dudack, whose optimism r uns 
deeper than most of her col- 
leagues, admits to feeling cau- 


tious as the fourth quarter gets 
under way. 

Interest rates are the key. 
most observers agree. "Should 
the erosion of bond prices con- 
tinue, yields {on the bench- 
mark 30-year government 
issue] will soon approach the 8 
per cent level, a big hurdle for 
equities since asset allocation 
models will begin to favour 
bonds over stocks," Ms Dudack 
writes in a recent Warburg 
briefing. 

In essence, the appeal of 
equity investments has waned 
in comparison with the compe- 
tition since January 31, when 
tbe Dow peaked at 3,978. The 

Do w Jones 

Industrial Average (rebased) 

115 


1907 



reason is the steady rise in 
rates. 

Individual investors, who 
have put the zip into the mar- 
ket since early 1991, began to 
react to this gradual shift last 
mnwtVi , taking refuge a gain in 
toe relative safety of money- 
market funds. They were turn- 
ing tail just as the first tangi- 
ble evidence of a cyclical 
upturn in inflat ion surfaced in 
the economy. 

Two weeks ago, it was 
revealed that prices at the pro- 
ducer level had jumped by 0.6 
per cent in August, the biggest 
jump since 1990. Meanwhile, 
American factories and mines 
were working closer to full 
capacity than any tima in past 
five years. As surplus materi- 
als and labour grow s carer, 
economists fear prices for both 
could asralatp quickly. 

Fidelity Investments, the 
country's hugest mutual fund 
group, said its stock sales were 
halved last month, while its 


money-market business was 
three times greater than in 
August 

Why did the little guy start 
to shy away from equities? 
"The year-long rise in interest 
rates, both long and 
short-term, has changed the 
valuation backdrop substan- 
tially." explains Mr William 
Dodge, chief strategist at Dean 
Witter Reynolds. 

The spread between bond 
yields - which determine toe 
return on money market funds 
- and the expected return on 
stocks has simply grown too 
wide, he argues. Bond yields 
have surged over toe past nine 
months, while stock values 
have stalled, at best The aver- 
age retiree can no longer bank 
on a steady rise In share prices 
to offset dividend yields which 
remain stubbornly below 3 per 
cent. 

In all likelihood, the gulf will 
get worse before it gets better, 
making stocks even less attrac- 
tive. Band yields are driven by 
monetary policy, and by all 
accounts the Federal Reserve 
is poised to tighten credit con- 
ditions as soon as its chair- 
man, Mr Alan Greenspan, sees 
a few more signs that the econ- 
omy is growing at an unmana- 
geable pace. 

That was the message which 
Wall Street gleaned last Tues- 
day from the elliptical state- 
ment which was issued after 
the Fed's policy-making arm 
adjourned its regular meeting 
without sanctioning an imme- 
diate rate hike. 

M ost analysts had 
expected the central 
hank to hold its fire, 
perhaps until after toe Novem- 
ber congressional elections. 
Still, in the fortnight before the 
meeting, the Dow industrial 
index back pedalled about 100 
points on toe growing sense 
that rates would have to go a 
lot higher more before they 
could come down again. "The 
only way out is for the econ- 
omy to slow" says Mr Dodge. 

October is traditionally a vol- 
atile month on Wall Street, as 
investors react to the torrent of 
third-quarter results released 
by US companies. This year, 
toe ride is likely to be even 
bumpier than usual. 



ASIA PACIFIC 


LONDON EQUITIES 


Foreign sales push Hong Kong down 1.9% 


Tokyo 

With most of toe profit-taking 
for the interim book closing 
out of the way, corporate and 
banking investors remained 
inactive and the Nikkei index 
closed marginally lower after 
fluctuating within a narrow 
range, ivrites Emiko Terazono 
in Tokyo. 

The index dosed down 51.31 
at 19,563.81 after a high of 
19,719.04 and a low of 19.519.70. 
Small lot buying by public pen- 
sion and postal funds sup- 
ported share prices in the 
rooming, but arbitrage 
unwinding and selling by deal- 
ers eroded the gains. 

Volume totaled 223m shares 
against 263m. The Topix index 
of all first section stocks 
gained 0.62 to 1,576.89 while the 
Nikkei 300 fell 0.30 to 288.39. 
Advances led declines by 518 to 
437 with 224 unchanged and, in 
Lundou. the ISE/Nikkei 50 
index rose 1.89 to 1,287.32. 

Traders said that dealers and 
most investors were cautious 
of carrying positions over the 
weekend due to the uncer- 
tainty over the course of the 
US-Japan framework talks on 
trade. 


Car companies were stronger 
on hopes erf strong car sale fig- 
ures, due to be released on 
Monday. Suzuki Motor rose 
Y30 to Yl.200 and Nissan 
Motor gained Y15 to Y809. 

Steel stocks were traded 
actively. Nippon Steel, the 
most active issue of the day, 
fell Y2 to Y390 and NKK 
remained unchanged at Y292. 

Speculative stocks fell on 
profit taking. Tsumura, a drug 
maker, lost Y50 to Y1J90 and 
Sumitomo Coal Mining 
declined Y21 to Y705. 

Tokyo Style, a leading 
apparel maker, retreated Y15G 
to Y1.770 on reports that its 
interim operating profits fell 
by 13 per cent 
In Osaka, tbe OSE average 
fell 6.30 to 21,985.13 in volume 
of 29.5m shares. 


Roundup 


HONG KONG fell 1.9 per cent, 
responding to the depressed 
tone of some overseas markets 
and and weakness in local 
property company shares. The 
Hang Seng index lost 178.97 to 
9,521.24, after briefly dipping 
below 9,500, in turnover that 
rose to HK$4JL4hn from Thurs- 
day's HK$3.67bn. The index 


was 12 per cent lower on the 
week. 

Analysts said that European 
funds were sellers at the start 
of their business day following 
Wall Street’s slide overnight, 
and a low* sale price of some 
local flats also hurt sentiment. 

Cheung Kong tumbled 
HK$1.10 to HK$37.60, Sun Hung 
Kai dropped HK$1 .50 to 
HKS57.50 and Henderson Land 
lost 80 cents to HKS48. 

TAIPEI edged back as the 
market consolidated after set- 
ting a four year high on Thurs- 
day. The weighted index was 
10.00 lower at 7,191.13, for a 33 
per cent rise on toe week. 

Financials that led the 
week's saw toe heaviest sell- 
ing. Hwa Nan, Chang Hwa and 
First Commercial banks each 
last T$5 to T$227, TS208 and 
T$208 respectively. 

Steels, however, posted gains 
on reports that a steel factory 
in South Korea had been tout 
because of fire. China Steel 
climbed 40 cents to T$27R and 
Kao Hsing Chang was up 80 
cents to T$25. 

BANGKOK edged higher, led 
by energy shares, and toe SET 
index closed picked up 3.59 at 
1,485.71 for a 1.4 per cent fell 
over the week. 


KUALA LUMPUR saw late 
bargain hunting that helped 
share prices to recoup most of 
their early losses and the com- 
posite index closed down 352 
at 1,129.76, for an 3.5 per cent 
loss over the week. 

SINGAPORE was broadly 
easier on a day marked by 
profit- taking and book-squar- 
ing ahead of the end of the 
corporate quarter. The Straits 
Times Industrials index ended 

1657 lower at 2532.63. for a 15 
per cent rise on the week. 

MANILA posted further 
gains cm the continuing recov- 
ery of PLDT, bargain hunting 
among blue chips and the 
peso's fall against toe dollar. 
The composite index closed 

1658 up to 2,908-24. for a L7 per 
cent fall on toe week. PLDT 
rose 50 pesos or 3.4 per cent to 
1510 pesos. 

SEOUL picked up in active 
trade after two days of consoli- 
dation as petrochemical shares 
led a broadly based rally, and 
the composite index closed 
1255 higher at 1,05050. for a 15 
per cent rise on toe week. 

BOMBAY was lower on sus- 
tained selling pressure and toe 
BSE 30 share index lost 5352 to 
4504.48 for a 175 per cent fall 
on toe week. 


CTiiARfES WORLD INDICES 


Jttnilv <omp*d by Thd Fuwcul Times Lid.. Goldman. Sacha 4 Ca and NatWeat Security Ud. In corfcmolon w«i the Irattute ol Actuaries and the Faculty of Actuaries 


NATIONAL AND 
REGIONAL MARKETS 
Figure m paiuntnesos 
show number ol hrvrs 
of stuck 


Australia (66) 

Auslru ilS) 

Wgmm prj 

Cumid .1 ( 103 ) 

Dcrvruik ( 33 ) . . 

Finland i»4| 

FrariCu ( 9*1 

Geimanv i58l 

HunvJ Ivono 

ireitsic |1<h 

ItuV 

J.ip.w> :48c 
Malay vji *>Vl . • • 
fcV-n. a ... ••• 

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Now JiMLind .t-' 
ay 

Simrapw ■«»! .. 

Smrtli Ain*. a (V 11 . • 
Spar:: |4T| . 

|3»\ 

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EUROPE t7l7) 

Nord,u It till 
P.iofw Basin LMCj 

Eino-PKitic INCH 

NuithAnuwap'tOi.. 
Eur.foE*. UK ft'. 1 ' 
Pacitu' C* Japan C>*3» • 
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w..iu£.' So Af id ('Cl 


us 

dollar 

Index 


Day's 

Change 


THURSDAY SEPTEMBER 29 1994 
Pound Local 

Sterling Yen DM 
Index Index Index 


Local 
Currency % chg 
Index on day 


Gns 

D*v. 

Yield 


— WEDNESDAY SEPTEMBER 28 1994 — DOLLAR INDEX 

US Pound Local Year 

Dollar Staffing Yen DM Currency 52 week 52 week ago 
Index Index BxJex Index Index High Low (approx) 


. . 171.16 
... 184.83 

.... 165.22 
.. .. 138.52 
. 250.42 

.. 178.37 
... 165.51 

... *4026 

399.1* 

. . 20663 

. *s.eo 
... 16028 
. 562.07 
. 23CEM6 
. . 210 73 
.. 72 77 
... 19604 
.. .38007 
...312.87 
140.07 
.....322 28 
. 163.03 
. IP? 79 
..1*S '*7 


V.VjU Ex JatMir uiflfl • ... 
Tito IVoriJ lnd»:» f.’lt-ll 


.. 163.76 

216.80 

17019 

.. UTS 40 

1 65.64 

. 152.01 
. ... -65 91 
. .. . 171-17 
174.56 
. 175 31 
IMS 69 


1.0 
-0.9 
- 1,1 
-03 
-03 
0.1 
-1.4 
-1 1 
01 
-07 
-0.9 
0.7 
-1 0 
-2.3 
- 0.2 
0.7 
0.1 
1.7 
0.1 
-1 1 
-1 7 
-1.4 

-1.3 


160.51 

173.33 

15444 

129.90 

234.83 

167.26 

155.20 

131.53 

374.32 

183.77 

8027 

15031 

527.08 


10638 

115.09 

102.88 

8825 

155.93 

111.07 

103 JS 5 

87.33 

248.55 

128.66 

5330 

99.80 

349.98 


137.58 

148.57 

132.81 

111.34 

201.29 

14337 

133.03 

112.74 

320,86 

166.09 

66.81 

128.84 

451.80 


153.76 

14854 

129.51 

134.69 

206.69 
182-39 
136.98 
112.74 
396.01 
188126 

9&35 

99.80 

555l34 


2158.80 1433.48 1B5046 8561.77 
197.61 131.22 16939 186.61 


6824 

184.58 

35725 

293.39 

131.35 

208.45 

153.63 

180-79 


4521 

122.56 

23722 

194.61 

8722 

138.41 

10S.01 

120.05 

117.54 


58.49 

15822 

306.23 

251.46 

11229 

178.68 

131.68 
154.97 
151.73 


64.03 

180.82 

260.60 

288.58 

135.93 

248.16 

13028 

180.79 

188.77 


1.0 

-09 

- 1.1 

-03 

-03 

-02 

- 1.4 

-12 

0.1 

-09 

- 1.1 

04 
- 1.0 
-1 JO 
-Ol 

05 
Ol 
1.4 

- 0.1 

-12 

- 1.4 

-12 

- 1.4 

- 0.5 


061 

128 

427 

2.40 

1.44 

0.77 

321 

123 

3.07 

343 

1.55 

077 

121 

120 

348 

3.73 

1.83 

1.62 

999 

424 

123 

1.88 

420 

228 


169.49 

18644 

16724 

13825 

251.13 

178.28 

16728 

141.87 


20005 

MM 

15925 

56000 


15822 

175.13 

16621 

13023 

23520 

16747 

15728 

13327 

37428 

19544 

81.12 

14929 

53326 


105.77 

11834 

10424 

88.71 

166.71 

11125 

104.75 

8823 

24820 

12923 

53.88 

9037 

354.45 


13829 

149.92 

13422 

111.73 

20124 

14328 

134.98 

114.08 

320.73 
16720 

8944 

12826 

458.74 


15228 

14085 

130.96 

135.10 

20728 

182.88 

13828 

114.08 

39527 

18721 

10047 

9037 

SBi.ro 


189.15 

19889 

17724 

14521 

275.79 

1S1.70 

165.37 

15040 

50628 

316.60 

97.78 

170.10 

£21.63 


14226 

167.48 

146.42 

12054 

229.78 

11024 

159.34 

12723 

300.67 

167.75 

57.88 

12454 

41123 


142.00 

18952 

147.40 

12152 

233.13 

11021 

170.16 

12823 

300.67 

16854 

74.11 

152.78 

41123 


2355.83 221298 147008 1894-34 8730.47 264728 


211.14 
7228 
196 56 
3747B 
312.84 
141.67 
22018 
18020 
105.27 
188.74 


188.34 

67.88 

184.63 

35224 

29358 

13328 

21047 

156.12 

183.43 

17023 


131.76 

4529 

12255 

233.86 

19629 

88.40 

141.14 

103.71 

121.85 

118.40 


168.78 

56.10 

15824 

30126 

251.40 

113.91 

18128 

13354 

157.02 

15257 


16656 

83.70 

180.68 

257.12 

288.71 

13754 

240.73 
131.66 
183.43 

189.74 


218.19 

7759 

211.74 

38057 

31454 

155.79 

231.35 

17056 

214.96 

19004 


166153 167959 
18450 18453 

5022 5921 

165.52 18039 
232.60 28250 
202.55 20255 
128.88 137.74 

175.83 1902S 
13955 14123 
181.11 16063 

178.95 18821 


iTii 16 


-1.1 

15*35 

20350 

158.60 

15691 

174.08 

142.55 

24958 

160.80 

163.69 

1&J.40 

17507 


135.65 

148.84 

-15 

3.13 

17071 

18036 

106.53 

13727 

15065 

17058 

154.79 

157.64 

i35.ro 

10597 

17427 

204.94 

-a? 

1/46 

21594 

20568 

138.82 

176.05 

206.78 

222.18 

173.19 

18018 



110.93 

54 

1.09 

169 20 

158.94 

10559 

136.06 

110.48 

17066 

134.79 

157.54 

06 

-at 

-05 

13521 

12519 

-0.3 

105 

168.71 

15942 

10590 

136.47 

12054 

175.14 

143.88 

167.47 



18502 

-0£ 

2.36 

18558 

17527 

11543 

15003 

185.95 

192.73 

17567 

184.11 

94.65 


129.57 

— 1-T 

050 

153,86 

14404 

9529 

123.56 

13063 

15012 

13594 

13096 

03 

213.74 

236.ra 

0^ 

2.74 

26532 

249.14 

165.51 

21327 

238.14 

296^1 

20432 

204.32 



130.04 

-0.3 

155 

171.78 

161.36 

107.19 

138.13 

130.44 

17065 

145.58 

157.69 


108.69 


14463 

-03 

2.08 

17430 

16429 

109.14 

140.64 

14521 

17059 

155 96 

16436 

-0.3 

-0.7 

140.92 

147.12 


238 

17534 

165.18 

109.73 

14129 

147.68 

1B0.03 

15054 

16074 

116.25 

150.06 

17555 

-0.7 

PC? 

187.98 

17058 

117.31 

151.16 

177.81 

19020 

17560 

17028 

-0.3 

16551 

109.70 

141.62 

14516 

-0/4 

2.28 

176.71 

18599 

11027 

142.08 

14072 

100 SO 

158.85 

16587 


, „..N. rr.x«i Tiim-i POMcnwntatf Urate* N- 4 "** C-P «d fixxh UB* UM pus «en urcte* to to edlton 

CwrnueH crow® with olfec* S ' 1 


LIFFE EQUITY OPTIONS 


Call Pits 

Option Oct Jan Apr Oct Jen Apr 


MfedDoaeai 

540 

331 * 

- 

- 

454 

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589 

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280 

754 

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23 

12 

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17 

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114 

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7 

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380 

13 

24 

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10 

20 

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390 

3 

12 

22 

33 

3914 

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SeflfctoA 

420 

15 

29 

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Mb 

r«si 

460 

3 

1254 

21 

3854 

4714 

53 

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500 

33 

4254 

545 * 

354 

14 

20 b 

rS 26 1 

550 

S 

17 

30 

285 * 

40 

<8 

BP 

390 

19 

30 

38 

B 

1414 

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420 

454 

1554 : 

2354 

2354 

31 

36 b 

BrbllSMI 

ISO 

1254 

1954 345 * 

2 

654 

8 b 

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180 

354 

9 

14 

11 

18 

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500 

245 * 

35 

415 * 

754 

24 

28 b 

rsi 3 i 

550 

4 

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57 

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390 

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460 

554 

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2754 

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town union 

493 

205 * 

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29 

l*M 2 I 

543 

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14 

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BAT tads 420 281* 42 48 lOb 16b 27M 

(*435 ) 460 8 22 27b 32b 38b 50b 

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Me 

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500 

15 

28 

36 

28 

3«b 

48b 

(topi tosce 

280 

18 

28 

33b 

im 

17 

23 

ras) 

300 

Sb 

IB. 

24b 

23b 

28 

34 

Taco 

220 

22 

28 

33 

4 

S 

11b 

(-235 ) 

340 

9 

16 

21b 

12b 

17 

21 

Vodatone 

183 

20 

24 

— 

4b 

7H 

— 

n«n 

200 

10 

15b: 

20b 

11b 

IB 

18b 

WBnts 

325 

28b 

— 

— 

5b 

— 

_ 

(*339 ) 

354 

7b 

- 

- 

20H 

- 

- 

Opdon 


Oct 

Jte 

Apr_ 

Oct 

Jan 

Apr 

BAA 

4m 

22b 

31b. 

(lb 

5b 

14 

18 

P488 ) 

500 

f 

18b 

29 

17b 

26b 

30h 

nonet toir 

500 

TS 

30b. 

(Tb 

12b 

26 

29 

(-507 ) 

550 

3% 

12 

21 

46 

58 

60 

Option 


nec 

«ter 

Jte 

Dec 

Her 

JUl 

Attey mb 

360 

40b 

401 

Hb 

G 

T4b 

IT 

(*388 ) 

390 

21 

30 34b 

i7b: 

29b : 

53b 

Amend 

25 

3 

4 

5 

2b 

3b 

4 

C2B) 

30 

ib 

2 

3 

G 

7 

7b 

Barleys 

550 

42 

55 1 

Jib 

15b 

27 

33 

rSBB ) 

800 

ig : 

29b 37b ' 

12b 1 

Mbi 

50b 

Btoe Onto 

380 

28 

35 40b 

6b 

lib 

18b 

PZ76) 

280 

16 

24 29b 

isb : 

row : 

»h 

British Gas 

280 

23 

29 33b 

8 

I2M 

18 

r29?) 

300 

11 ' 

18b 

23 

19 : 

21b 

2S 

Mom 

180 

16 ■ 

IBh 

24 

(ib 

T6 

19 

riBi i ' 

200 

7 • 

I OH 15bl 

>4b2Sb : 

Jib 

HBMten 

160 

18b! 

23b 

28 

4 

7 

11 

H74) 

180 

7 1 

12b 15H 

13b 

16 

22 

tonmo 

130 

11 • 

14b 

17 

6b • 

10b 

13 

H32) 

140 

6b 

9b 12b 

I3b ' 

18b ' 

18b 

MS Ptx*r 

420 

SI ! 

S9b 

89 

7 ' 

13b 20b 

r«n 

4801 

Mb; 

18b 43b 

23 29b 

37 

Sea Rarer 

330 

<1 48b 

54 

7 1 

Mb' 

15b 

1*358 ) 

380 

24 

31 38b 

22 

28 29b 

Sears 

100 

Bb 

11 

13 

5 

6b 

8b 

(*1(B) 

110 

4b 

Bb 

B ' 

nb' 

12b 

15 

Fora 

230 

14b 

21 

28 

11 

15 IBh 

[•234 ) 

240 

6 

12 

17 

24 

27 31b 

Tame 

120 ■ 

14b ' 

IBb23h 

8 

Bb 

12 

H27) 

130 

9 

14 18b 

12 ' 

16b 17b 

Tliom EM 

950 

87 

79 

100 

20 

33 

33 


COBS) 1000 37 52 72 39 K SB 63 

158 200 24 271 * 30 V* 4 >* 9 121 * 

(-216 ) 230 12 161 * 191 * 13 19 22 * 

Tonttta 220 1 B 21 KZ 7 K 11 IS 18 

rzn ) 240 7 12 ** 18 ** 231 * 27 » 30 

Vdcoma 600 71 * 90 100 15 V zr* 

1*6471 650 40 V* 601 * 73 351 * 401 * 81 !* 

Opdon to Jm Apr Oct Jm Apr 

Oam 550 44 B 2 H 741 * B 191 * 311 * 

1*584 ) 600 13 34 28 43 57 

ttttTSp* 650 4614 991 * 95 9 27 46 

(■882 ) 700 17 H 42 SB)* 32 J* 51 73 * 

RAW 462 231 * - - 8 - - 

(•474 ) 475 14 » - - 13 K - - 

OpPon Not ftt Hay Her Feb ttty 

Ut-Rope 160 25 2B**32U 2 5 8 

[180 ) 180 11H 17 21 813*16* 

■ Uhdwfyfcig oaewfly price. Pwra to n a shown we 
bawd on desing effer price*. 

SaprsmMr 30 .Tetai antiaeiK 22.083 Ceos: 
13X66 Puts: 9X08 


FT GOLD MINES INDEX 



Sap 

39 

% ctag 
do day 

Sap Sep War 

28 27 ego 

tote dto 
yWdtt 

Bad 

Mgd Low 

tod IGnes Index (35) 

233240 

-02 

233882 2337 JO 1877/0 

1JB 

23B7JS107XB 

■ Regkral ImSca 






Africa (IQ 

356230 

-1.1 

3B23JS 3544.15 2318.73 

U2 

382320 Z295J8 

AteMHtoCB) 

288635 

<05 

2871.15 283247 187463 

UR 

3013m 1074.63 

Mam America (11) 

1882.64 

+02 

187251 191121 1468.72 

071 

2039.65 1450.45 


Copyngfn. The Rnenasl Tines tinted 1694 . 

Rgm to bracksts tea* matte ol compote Beets US Dobs. Bose VbJuok 1000X0 3V12/22. 
Prfrfecmgr Odd Mhee Index: 3S 2B1.7 ; doyl charger -05 pekte; Yaw Sger 16S3 t Part*. 

CanaKMM ehanga w» aSaet srume Dw m to t Highlands QoU [tentet (Ooortw and cftsipA. 
Laws prices were i w atab to this kSootl 


RISES AND FALLS 



Rises 

On Friday 
FaBs 

Same 

Rises 

)n the week 
FaBs 

Seme 

British Funds 

48 

12 

12 

154 

120 

76 

Other Fbcsd rnturost 

2 

0 

13 

18 

14 

43 

Mirwral Extraction 

71 

31 

94 

272 

289 

419 

General Manufacturers 

33 

184 

367 

405 

1.001 

1J18 

Consumer Goods 

35 

51 

101 

161 

270 

504 

Services 

71 

129 

297 

331 

874 

1.480 

UtBdes 

13 

21 

11 

55 

116 

54 

Flnancttte 

33 

06 

171 

335 

619 

875 

Investment Trusts 

60 

128 

270 

294 

880 

1JS5 

Others 

24 

55 

25 

179 

196 

147 

Totals 

522 

705 

1,361 

2,204 

3J79 

6.771 


Dbib baaed on Bnsa companJas Mad on she London Sham Santo 


TRADITIONAL OPTIONS 


Cals; Alliance Rea, Andnex. AromaScan, Beckman (A], Btodovood Hodge Prt, 
BfciebM Toys, Bolton Grp, Com-Tok, Greenwich Rea, Mtnmet, UddeM Hldgs. 
P hoto M e, Regent Corp, Tadpole Tech, TuBow on, Tuskar, Utd Energy, World 
FMda. Pus: Blualiird Toys. Puts & Cafe: AromaScan, Bum dene Inv, Sage. 

LONDON RECENT ISSUES: EQUITIES 

Issue Amt MkL Close 


price 

paid 

cap 

1994 

price 

Net 

Dhf. Grs 

P/E 

P 

i*> 

(On.) 

Wgh l 

Low Stock 

p W- 

<Sv. 

oov. yk) 

net 

§125 

FP. 

18-2 

130 

118 Comtte 

119 

WN4J) 

2.1 43 

11-S 


FP. 

130 

1*2 

1 Conti Foods Wrls 

IV, 

- 

- 

to 

- 

FP. 

264 

GO 

81 Emerging Mkts C 

66 *4 

- 

- - 

to 

03 

F.P. 

12-4 

68 

65 Ennemlx 

88 

RN0.71 

53 13 

fl-5 

112 

F.P. 

21.4 

120 

118 Independent fttrts 

120 

LN4XJ 

Z1 43 

M4i 

180 

FP. 

17.6 

195 

180 Madde mil 

183 

RN&Q 

2 2 4.1 

74 

BO 

FP. 

24.1 

65 

76 Rytand 

85 

LN3-5 

1.7 5.1 

T4.0 

- 

F.P. 

3-85 

44 

27 Suter Vbts B9/D4 

33 

- 

- 

- 

to 

FP. 

114.7 

379 

371 Templeton E New 

371 -1 

- 

- 


• 

F.P. 

12.4 

212 

192 Da Wits. 2004 

201 -2 

• 

- 

- 

- 

FP. 

2002 

380 

360 Wrexham Water 

360 

- 

- 


- 

FP. 

33.7 

330 

330 Da NV 

330 

- 

- 

- 

RIGHTS OFFERS 






Issue 

Amount Latest 




Closing 

•Ol- 

price 

paki 

1 Rerum. 

1994 



price 


P 

*4> 

data 

High Low Stock 



P 


476 

m 

4/10 

59pm 15pm Commercial Union 


27pm 

■KJ 

180 

w 

17/10 

9pm 2pm Jermyn trv. 


2 pm 


500 

m 

18/10 

52pm 27 pm RacUU & Cdman 


51 pm 

■*3 

245 

ta 

9/11 

24pm 12pm Unkhem 



12 pm 

-1 


FINANCIAL TIMES EQUITY INDICES 


Sep 30 Sep 29 Sep 28 Sep 27 Sep 26 Yrago High ‘Low 


Ordinary Share 

2350.1 

2323.8 

2356-5 

2340.0 

2331.4 

2312.6 

27133 

22406 

Ord- dh. yield 

438 

4.43 

4.36 

4.39 

4.41 

4.02 

4.48 

3.43 

Eero, ykl 96 bd 

633 

8.39 

029 

633 

635 

4.73 

639 

3.82 

P/E redo net 

17.67 

17.49 

17.55 

17.43 

1738 

26 96 

33.43 

16.94 

P/E ratio nil 

17.70 

17.62 

17.81 

17.69 

17.64 

24.90 

3080 

17.09 


■Per 1994. Orctowy Sham Max tee cerpatoon: legh 271X0 2AEAM; low 40.4 SWBMO 
FT Otteary Share index base am 1 rr/as. 


Onfinery Share hourly c hanges 

Open 9 l 00 IOOO 11 X 0 12-00 1850 14 J 10 1500 1650 High Low 
23208 2328 2 . 23295 2333.6 2331.0 23305 2329.7 2326.6 23425 23501 2320.0 
Sep 30 Sep 29 Scp 28 Sep 27 Sep 26 Yrago 

SEAO bargains 23504 23538 24.483 23,734 24526 32.711 

Equhy turnover (Dn»t - 1442.6 1565.4 1376.7 1222-3 13715 

Eqirity bargalnsT - 27^01 27572 30207 24.990 36^26 

Shares traded (m^t - 529.4 4985 516.3 452.6 6295 

TErctoSng tws-merisei testnoes and omsaas tumoMr. 

FT/LES ECHOS 

The FT can help you reach additional 
business readers in France, Our link with the 
French business newspaper, Les Echos, gives 
you a unique recruitment advertising 
opportunity to capitalise on the FTs European 
readership and to further target the French 
business world.For information on rates and 
further details please telephone: 

Philip Wrigley on +44 71 873 3351 





mg data lor llio monitoring 01 targets, ana dip tor inu nuiiunug m wasu: i«in«6.iw- 





FINANCIAL TIMES WEEKEND OCTOBER 1/OCTOBER 2 1994 


LONDON SHARE SERVICE 


YU 

Bra RE 

u zat 
50 1S.1 

53 9.1 
70 100 

as « 

54 U 

50 SO 
4.9 70 

3.0 170 
ias - 
104 

30 110 

05 

20 

4 A 4.4 

2.7 
104 

00 - 

4J 10$ 
4JS 9.9 
53 107 
03 « 

05 150 

08 235 

5.7 104 

5.0 9.1 

85 * 

35 18.8 
07 508 
05 - 

30 BO 

no 

05 255 
as 4 
48 no 

07 440 
67 608 
25 4 

09 485 




30 137 
04 « 

15 - 

55 ISO 
3502 50 142 

507 30 $ 


700 2.8 485 

1135 - - 

909 40 282 

Bt A 23 165 
20B iao - 
mi 35 135 


SUC] 13W 
*7fi 137d 


SiS£?Cera*-iia 


YU 


Grt 

HE 

115 

i 

32 

167 

24 

167 

12 

162 

75 

— 

45 

292 

45 

185 

64 

— 

43 

— 

42 

167 

si 

Jl.i 

SB 

285 

42 

362 

30 

162 

55 

131 

18 


25 

203 

45 

130 

64 

145 

50 

- 

28 

ISO 

41 

872 

21 

345 

35 

ISO 

17 

192 

67 


39 

165 

88 

178 

42 

* 

18 

Z 73 

18 

221 

35 

180 

20 

164 

65 

20.7 

35 

168 

31 

180 

28 

17.7 

30 

206 

YU 


671 

WE 

43 

168 

25 

200 

39 

68 

1.1 

— 

24 

24.1 

61 

268 

15 

558 

25 

132 

42 

225 

42 

143 

48 

115 

31 

« 

45 

168 

15 

* 

30 


64 

118 

48 

202 

44 

10.7 

12 

152 

44 

245 

69 

117 

28 

4> 

47 

10.7 

3.7 

10! 

14 

105 

55 

17.1 

26 

155 

1.4 

167 

IS 

161 

22 

212 

25 

195 

2.8 

160 

38 

163 

52 

ISO 

44 

125 

45 

125 

34 

165 

18 

208 

58 

85 

28 

161 

61 

88 i 

33 

231 i 

_ 

464 

6! 

♦ l 

67 

165 i 



*C SO 

IW 140 

W N ISO 

t* 288 

n_-W 187 
1 810 




1994 

M4 

YU 


J** 

lour Catfia 

Gfs 

WE 


£44)3 

2*8 

1.101 

638 

19 

35 

17.5 

108 

83 

860 



IBS 

153 

868 

39 

157 

so 

"4 

1467 

14 


73 

888 

25 

157 

•39 

24 

JB 17 



9*'? 

78 

2992 

13 

172 

47B 

34a 

1238 

75 

21.7 

,! SS 

?1 £s 

20&0 

282 

9.1 

46 

i 

18 

8 

653 



17 

e<9 

586 

- 

325 

*539 

411 

1275 

61 

188 

*380 

29S 

9460 

30 

188 

21 

smes 

141 2 

648 

15 

153 

283 

283 

460 

18 

17.1 

67 

«5 

175 

31 

159 

3BI« 

24 

844 

— 

755 

809 

359 

1465 

25 

237 

117 

81 

122 

45 

183 

202 

154 

4135 

1.6 

* 

467 

412 

615 

23 

iie 

120 

? 

ISO 

32 

61 

•88 

54 

105 

1.7 

— 

388 

277 

SB3 

07 

24 1 

588 


7072 

35 

20.4 

45 

30 

690 

59 

270 

10T 

61 

105 

22 

117 

580 

400 

1385 

15 

215 

70 

64 

949 

50 


W3S 

1220 

960 

as 

271 

•«eo 

IS0<4 

SOB 



m 

£23 

2.113 

15 

50.0 

21 

348 

64 

— 

638*1 

£27J| 

8580 

1.1 

264 

88 

56 

315 

35 

111 


YU 


Grt 

we 

1 J 

21.7 

21 

193 

28 

1*7 

30 

123 

05 

— 

05 

— 

48 

14 7 

2.4 

— 

SI 

128 

1.4 

— 

46 

1.4 


12 

— 

30 

17.8 

19 

403 

162 

— 

43 

— 

1.4 

♦ 

1.7 

205 

20 

205 

1.4 

788 

05 

— 

as 

« 

25 

92 

25 

* 

69 

230 

55 

20.1 

10 

sa 

55 

— 

16 

245 

17 

ZU 

1.6 


25 

235 

124 

- 

13 

182 

23 

161 

51 

127 

29 

165 

23 

175 

44 

$ 

05 

i 

42 


27 

220 

09 

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4.4 

154 

03 

78 

1.1 

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15 

130 

25 

183 

1.1 

354 

15 

* 

15 

650 

18 

17.7 

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!7.3 

54 

154 

1.1 

: 

YU 


Grt 

WE 

40 

375 

77 

— 

41 

— 

40 

SIS 

73 

83 

39 

222 

4.4 

- 

48 

202 

52 

164 

1.9 

758 

55 

151 

29 

195 

5.7 

: 

“ 

845 

48 

66 


155 
27! 

107 
403 
a 

187 1025 
240 621 
88 3U 
271 4S2 

220 1345 
95 958 

70 1027 
200 854 
364 1707 
20 134 
69 305 
9 >4 304 

0* 7344 
235 2170 
109 941 
38 047 

v* us 

44 278 
n 308 
607 


7»T 


YU 


Qrn 

WE 

24 

183 

68 

453 

20 

T9.6 

1.7 

562 

17 

* 

48 

* 

28 

148 

25 

110 

28 

— 

12 

105 

58 

430 

23 

102 

14 

17.0 

65 

110 

35 

128 

20 

140 

11 

110 

14 

129 

22 

163 

42 

133 

72 

- 

26 

473 

25 

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46 

124 

50 

128 

19 

228 

5b 

198 

67 

012 

18 

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42 

17.7 

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388 +1 

387 

194 -2 

141 -I 

182 

94x1 

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-ijj 
as +ia 

284 ' +3 
Y26»i -*i 

28833 *1 

289U 

ISM -Ik 
134** 

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121 

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sa** ■*»* 

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W6*i 

08 

W = 

100 

30 -1 

81 

24 

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ISM 

94 

40U 

23*2 

11812 -Is 


&-» wur PnW-J 
- 101.1 10 

03 4105 11.8 
UJ 382.4 48 

15 234.2 23.7 

0.7 

95 97 4 35 

78 788 -24 
88 1178 -48 


1M 41.1 61 


20 321 0 108 
15 3300 I4J 
1.T 1342 09 
05 1278 -SO 

15 - - 

18 760 85 
03 2285 -15 
OS 141 9 14J 

47 861 88 

- 922 -65 

15 387.8 127 
35 1 168 -27 

- 485 1.7 

U 1641 15 

45 - - 

- 845 215 
25 1245 85 

- 101.7 1.7 


41 835-290 

- 171 6 -75 

- 1078 128 
221 - - 

- 485 515 


rm 


406 
725 
40 134 
1 M 275 
431 4263 
78 1845 
101 
00 
542 
322 
138 
178 
34 
71 
48 
48 




Price 

- 

X 

W» C*j£m 

Ok 

WE 

2981? 

♦8*7 

25312948 

62 


274 

-2 

375 

281 

481J 

50 

1?9 

308 

RE 


303 

263 

719 

28 

124 

+ or 

1994 

Mkt 

YU 


Piic» 

- 

hWl 

In CjoSot 

Ok 

P/E 

401U 

-8 

544 

400 

3567 



639 

-25 

1141 

910 

8415 

21 



, - 






ena 

248 


Hitt 

•297k 

% 




Tin 

295*1 

♦k 

OBk 

393 


4564 

748 

17 

4J 


33 



45 

32 

129 



132 



163 

115 

467 

_ 

_ 

6*7 


10 

6 

261 

_ 

_ 

08 


115 

SO 

368 

_ 

_ 



297 

232 




238 

-2 

270 

212 

514 



47 


*7 

40*7 

519 



Jlti 


44 

30 

568 


_ 

31 


83 

22 

749 


_ 

124 

tJ 

140 

a 

265 


_ 

32a 


39 





88 



*110 

82 

931 

30 



- , 

171 

134 

STS 



lOJc 

-‘1 

15*7 

10k 

190 

4.0 




1(0 

40 

427 





108 






-13 

613 

402 

mo 

1.8 

74 1 




158 

45 



50 



sa 

284 

3U 

21 




39 

19*7 


— 



-1 

171 







*152k 

74 




2D0 


274 



_ 

_ 

198 



21*7 

IS 

333 



43d 



80 

4! 

323 

62 

57 

«*7 

-2k 

152 

70 




7 


3 

Ik 


_ 

_ 

232 



330 

232 

325 

l* 

135 



210 

IK 

1061 

51 

150 

137 

tl 

338 

291 

1035 

24 

172 

51 

-2 

83 

44 

14 



143 

-** 

U9>> 

138*2 

1^4 

45 

156 


iii*j» iS7‘j i 




42 - - 

- 281.7 75 
15 4175 -5 
25 962 7.1 

1.7 5063 75 

38 1S27 44 








































































FINANCIAL times WEEKEND OCTOBER 1/OCTOBER 2 1994 


21 


nwEsnrair trusts - cont 


Was Piles 

Pomcfiol Japan □ um% 

Wta0Hta-„.__.n Go 

AnmlACMi OS 

PBB M KCT 1» 

wrrans— □ c 

f%« Euro Swr n 94 

Warms. O 40 

Pn ma too .N 28M 
Ptansgnnlna.XaHD 223 

Wamnt* Bt 

WTCgfal-. _*NO I* 
I’.'KCtLn'MO . cnsa 

RsftartKt n 

(Mfeftkabc XN 156*1 

«p H *75 

»XUecAmkK..j| «ns«a 

Cap G 30 

Waranta— V4 

ftvjt HerEA NQ 110 

WrerarB 2S 

Zero 0* PI 1DS% 

fai Met Geared .N 90a 

WJ Cap 1901 zr% 

faSHeitaur Jdj lltoS 

warama 31 

r* mere la re M3 iMd 

Cap .□ i 2 b 

teinratt 29 


-2 


139* 

Wrfi km 
WO BS 
00 *7 

SS m 

163 1! 


INSURE & HOTELS - Cont. 


a 
•*> 01 
« 33 

aw 261 

.... "276 SOB 

— 140 78 

109 164*2 

— . SIR*; t170»2 

— M OB 

— IN IS3 

— SB 44Q 

— - 121 104*2 

— s ■ 


to nsor 
Grs NW Pnx-) 

- 102-B -1.6 CoopK. 

W7 vSS 3£- 

« 12T9 -9 DiuiS^Z^ 

- - - Euro ffiow FFr_ 

- 92.1 -20 fiaaanp.- ; ^ 

ZB 7019 72 
U 241.6 6.9 

- 710 55 FtacAsie __Q 14 -% 

23 6308 103 M^U5H?IS T73 ^4 

93 - - at _♦*« « 


LONDON SHABE SERVICE 


OIL EXPLORATION & PRODUCTION - Cont PROPERTY - Cont 


RETAILERS, GENERAL - Cont 


TRANSPORT - Cont 



-1 

"♦% 


147 

40 

TI8% 

110 

39 

170 

77 


13 

110 

25 

108 

90 

23 

118 

31 


1W4 UU to 

to* Cap£m Grs PS 

sos ms 
16 213 
133 13U 

as iu3 

92 1&8 
232 719 

21 a 233 
300 14a 

B% 6 137 

131 01 HU 

221 161 327 

360 202 4373 

*2% 1«2 113 

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25 109 - - 

39 169 



SOUTH AFRICANS 


Notes 


♦ or 
Price - 
£29V — 

1894 Mid 

Mdi km CapDn 
£30 £13% 1908 

to 

Grta P/E 
25 71.4 

mi _ 

esti 

£3iJ 88X4 

07 - 

lisa 

128 

75 121 

79 $ 

85 

95 

8S 142 

149 4> 

486 

an 

280 Z92D 

29 - 

£11% 

MW 

£10 3909 

23 199 

613 — 

838 

53B 8219 

2d 125 

002 — . 

*616% 

356% 54X7 

21 189 


GUIDE TO LONDON SHARE SERVICE 

Prtoa nr me loadan son Senta delwrod by ExM FhvneU, 1 
merafier W trie firancid Times tonp 

CUrasny rtwritofions are band op hose used tor the FT-SE Aduun 
UrMcr 

Ctartae mid- prices are Jem In pence oka othonke sued. WflU and 
kms are baed on infiKtoy irtd- pricea. 

Whew rtfirta are Oenomnawl la oirenda Htw 0w> etsrkng. thto I* 
hdtaad arter me name. 

Symhda Waning to UMdend oasis appear h n notes cahnn 0a9y a a 
OukJe to yteMs and WE redos. DhUends and DhAJort caws are pxitahed 
as Monday. 

Matte taphakaikai shomi is akadtad saparanty tor each few d stock 
cao«L 

ErttmaiEd prtte/eaminsa rotko are based on tXESt annud reports and 
accataia and, mu re pnssto re. an uattadw interan fisjuna. p/£s ae 
. jk uimul on "act" dtaotoufion bests, w i rti ui pat snare DfihQ co m puted 
on profit aner toadon. ooehabis ettepuaef MrtBs/tosrea and unadaved 
ACT where aptdcaWo. Yields ae baaed on mtt-prtoa. on gross. **nted 
tvateldend a* crettt d 20 per cad and Mow tor yakta ol declared 
dsntudon and rtgMs. 

Estimated Net Asset Uatues HAVs} are sham tor imsamcffl Trusts, to 
pence per share, dang mo, the nercertaoe taCMnta 0Ms) or prernkm 
(hi -j to M narenr rteatng start) pita The NAV brefc assumea pner 
charges at par taue, camerttotes omened ana warana merclsad B 
Hutton occux 


□ tadtoam fiie aroet aedre^r haded stfido. iwotreJudesUCatnaa 
where Iransactoi and prices are puMahad condnuatahr Baauah ha 
Srock Excnanpe Automated QtMrton system (SEAQO and non-LK 
Hfirts mroapn the SEAQ htanatnr u l ayatem. 

' Hfoha art tan nmVed thus tare treen adjusted to stow torrtghb 
tees tor pad, 

4 Warm since Inc rea sed or resumed 
t Wartm since mtaced. pamed or defHifid 
♦ HBuras or rapott awatod 

V »tf» 2.1WM Dutaeas tncoreoraad compaatea uaed an an aapnwed 
awntioBe 

X Free ereaiaMnleflB report antotaa. saa debus Mow. 
i USM: tot Ideo on Bun EsEhroge ad csiBpany not subjected to 
sane degree d taortatton as feted securities. 

Buie 43taj IKS man heerp arted ncm-aeaed compartas 
Price tf dtne of susfieorten 

btfaded dMdand yUH dla pendag scrip atokir riffis issue. 

r Meror Ud ct rectgantaflan » progress 

Forecast dddadj 

hterim ujin a ria 

4 Uvetpkatod cafiacOre taestmen scheme. 


; pta based on aamtags updeted by bust 


aYWdbaredon 
annuafead tWdend 
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rfflefat naumttK . 
c Cents, 
t RstytakL 
g AssuriBd tsddead 
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nflaunaiL 
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tjfajrtnoshasedw 
prairtnnlgureu 
s ttuttend ytad 
Batata a meto) 

ftSSLi ttadenl 


1993-94. 

. _ ylddhc- H Figures based an BW 
todas a ^ead payreert Yteane . 


v Not shied to ACT. 
iDMfcSytf 


FYlaU Dared on 
prospectoa or other 
oflidrt eemdn for 
1954^5. 

8 Assansdyida dter 


Earnku' 
based 00 


PRorees based oa 
prospecuorcrtiw 
affidd estknatw for 

R^ocaa annuafea 
mdd.pt> tasad in 
prospectus or dhar 
oftical eafcndes. 

T figures eeaunad. 

V Pro tena fans. 
ZDnktadmeUUdtto. 


1894 Mtt YU 
hfon im capon firta 


_ OATkaX ftICl 430%ro *14*2 570 3721X402 59 119 

19 159 T?%pclA-0SDB_ £114% +A £138,*. £112% 0X1 1X7 - 


301 -17 400 337 2929 49 2X3 


83 


95 

68% 

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778 

477 

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128 

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163 

214 

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350 

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380 

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13 

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+1 

32 

203 

349 

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29 249 

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XB 169 

39 1X7 Nana Wee 

59 - MrUnta & BS __ 83 M X7» 

11 IX* Allfaai/Hr 7B4V -4V 777V G19V 1X188 


Yield tasad on 
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dOpa KdoBUfi tar 
1933. 

K Yield based on 
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pfflcai Btfnutas tor 

1»4 

.. 1 tatki teat on L EsUnvsHi annuaised a! anfeMemt 
btsstamideanWigs. rtekL ota based do xc w scrip teua; 
a Forecast, re etamated otea Bread eamhgs ffortdn; 
anaftsed dhtend M Vtekl batsd an timid; 

ytdd. pfe broad ai piwp wiiB ortn ar d arcapiatfeBtutm. 

prBW4t8 yaart uuning; otftul BsdnotBS tor 


♦ v 1984 Mkt to 
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- - Ifefat 15 OM 

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H ,„o KoaBro 
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— 


327 


H «2 teM^atn djj ilia 


29 157 pter 

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♦ a 1394 Mia Tkt 
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% -1 130 08 552 

98ffl — - 1Z7 93 399 

10% 31 17% 116 

ZS7 -2 278 253 14X8 

116 144 109 9U 

VR 121 :C1% 152 


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♦13 *6*1% 4*0 <982 

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Ci Mtr £1« -4 £»,'« SMS 5489 

_.ttww— HU JM +17**«% 844 39*7 

39 1X3 CSpGVfiCOt. 1B5VS +5% 230 159% 

* — “ 100% -IV 

92 

148 


49 179 
29 157 Oaten 
29 129 Dart 



238 549 2.7 m D aw tg r w 

214 81X3 18 149 tetemdltt 

52 1U WarasB10B3_n 

- 251 Rsfire« H 

45 129 Ftrtt Porta flO 

- 21.7 GK1XS. 


.6 San 

- PiP 


19% _ 

173 

30 — 

28 -3 

HD 14BU — 
tdC 103% 1 * 

KD 27V *V 

iPCePf 64V -V 


82 

209 

132 

48 

83 


109 9X3 
30 229 

255 1412 
S 894 
K 189 
10*4 5X5 

IB 8X3 
20 393 
S 219 
1*8 2 U 

S I 668 
819 
40V 324 



4 2 119 CHTBuj 

- - Os-Ahead. 

35 2X4 GDDaeOl*lM.< . . 

42 123 tap ka faa RN 

24 34.7 btakCptaoontol 

49 179 (DM 

46 174 Jtedn^jQ 

- 14.1 Lor (TSOB Frts— ID 

- - MayneMSkAS 



80 2978 


THs antfog b mfltita to cooperies yrtron ihww an regrtarty 
traded ki the Med Kfogdtra tar a tee of E123S a rem tar each 
£7 arerrtty skovro, subject to the Etta's dtaredor 

“ , j FT Free Annual Reports Service 

23 21.1 You can obtain the current annual/interim 
3,7 report of any company annotated with * . 
oj I Please quote the code FT4935. Ring 
H " 3 . 081-770 0770 (open 24 hours including 
it <t> weekends) or Fax 081-770 3822. If calling 
iao 35 It iii frottl outside the UK, ring +44 81 770 0770 

320 1239 19 17.7 or fax +44 81 770 3822. Reports will be sent 
“S 'lS I I the next working day. subject to availabilty. 

29 229 FT CttyUne 

J® ico Up-to-the- second diare prices are available by 
113 409 39 * telephone from the FT Cityline service. See 

125 1042 19 159 Monday’s share price pages for details. 

sr% inis T 2 174 An international service is available for caDers 

"155 126 % 380 4 1 99 QutsldB the UK. annual subscription £250 stg. 

Ill n ei S3 li Cd 0T1-873 4378 (+44 71 873 4378, lntsmstlonaQ 

<78 335% 1932 49 6 for mere in f ormation on FT Cityline, 


SO 129 
405 1419 


22S%ti -V G9>1 CMV 4799 
205 2B6 150 733 


- - " ‘ws^r 


ing data lor tha monitoring oi targets, ann mv tor cm# tiduuune ut »***: t*r«.n«Bi "a- 




eWorld 
i Leader 
^ in rolling 
f bearings 


FINANCIAL TIMES 


mmi 


wiring SiTi.ejT« Specmiat# 


Weekend October 1/October 2 1994 


Elhemtl • IGM Cabling System • LAM 
Fibre Optics ■ AT&T'b PDS • Nevada Western 
Deldcn • OigMals OECconnect 
Tel. 07S3 6S6Q04 


Chairman says car group will return to profit 

Fiat merger creates top 
European parts maker 


India steps 
up efforts 
to tackle 
plague 


By Andrew H3I in Milan 


Fiat, the Italian car and 
industrial holding company, 
announced yesterday that it 
would merge Magneti MareUi and 
Gilardini, its components subsid- 
iaries, to create a company with 
a turnover of L5,000bn (£208bn) 
which will become one of 
Europe's top three manufacturers 
of car parts. 

At the same time, Mr Giovanni 
Agnelli, Fiat's chairman, forecast 
that Fiat group's consolidated 
gross profit for the full year 
could reach $lbn (£600m). 

The gross consolidated profit 
will be between Ll.OOObn and 
$lbn. I leave you to work out the 
exchange rate,” he said after the 
board meeting of 111, the family 
holding company. 

Last year, Fiat recorded a 
record loss of Ll,783bn after tax, 
and decided not to pay a dividend 
on ordinary shares for the first 
time since 1947. 

Magneti Marelli will absorb 
Gilardini, through an issue of 
new Gilardini shares reserved for 
Magneti MarelH's shareholders. 
Gilardini will then complete the 


process, which has already 
begun, of transferring its non- 
car activities to other companies 
within the Flat group. 

The deal amounts to the big- 
gest rationalisation of Fiat's 
activities since the group sold its 
holding in Italian retailer La 
Rinascente a year ago as part of a 
complex capital-raising exercise. 
But where that deal was part of a 
concerted effort to pull out of the 
trough of recession, yesterday's 
announcement came the day 
after Fiat confirmed it was on the 
road to recovery with publication 
of a first-half profit of L727bn 
before tax. 

Mr Agnelli warned that 
although “the worst is passed, 
[the situationl is still difficult, 
and one shouldn't think that 
everything is resolved. The auto 
[division] in spite of everything 
will stiD have slight losses”. He 
added: “It’s still too early to say 
if there will he dividends on Fiat 
ordinary shares." 

Fiat owns some 60 per cent of 
Magneti Marelli and 70 per cent 
of Gilardini, but the rest of the 
stock is quoted in Milan. Both 
component companies’ shares 


were suspended yesterday before 
the announcement of the merger 
was made. Flat’s shares, which 
have been among the Milan mar , 
ket's strongest performers in 
recent weeks, fell to L6.731, 
against an opening price of 
IAS69. 

Under the terms of the deal, 
Magneti Marelli shareholders win 
receive two new Gilardini shares 
for every six Magneti Marelli 
shares held. 

The deal will be put to share- 
holders Of the two rermparfftc on 
November 14 or 15. 

Fiat stressed yesterday that 
there would be no job losses at 
the combined group, which will 
employ 23,000 people. According 
to a joint statement issued by the 
two component companies, the 
enlarged Magneti Marelli will be 
the market leader in Europe for 
dashboards instruments, and 
number two for fuel injection 
systems, headlights and rear- 
view mirrors. Europe's other 
main components manufacturers 
are Bosch and Marmesmann of 
Germany, and Valeo of France - 
part of Mr Carlo De Benedetti's 
Cerus group. 


By CTree Cookson in London and 
Stefan Wagstyt in New Delhi 


Giiaratm will then complete the component companies snares cerus group. 

General bad debt provisions 
backed by bank supervisor 

By John Gapper in Madrid He said that banks should con- fiscal policy could lower banks' 


A leading international banking 
supervisor yesterday endorsed 
plans by banks to even out the 
swings in their reported profits 
caused by sharp rises in provi- 
sions against bad and doubtful 
debts during recessions. 

Mr Brian Quinn, executive 
director for financial stability at 
the Bank of England, said banks 
should consider smoo thing their 
profits by making consistent pro- 
visions against loans in line with 
likely rates of default. 

Barclays is among banks work- 
ing on plans to make general pro- 
visions against corporate loans at 
the time they are made, rather 
than waiting for signs that bor- 
rowers are in danger of default- 
ing. 

Mr Quinn's endorsement at a 
Financial Times conference on 
international banking in Madrid 
yesterday is the strongest public 
backing given to the idea by a 
supervisor. 


He said that banks should con- 
sider "smoothing out the differ- 
ences between reported and 
actual profits over the life of the 
loan book", or alternatively recal- 
culating capital ratios internally 
to reflect likely bad debts. 

Mr Martin Taylor, Barclays' 
chief executive, had argued that 
banks had mis-reported profits 
during the late 1980s because 
they took Into earnings income 
from loans which they later had 
to write off in the recession. 

UK banks have been discour- 
aged from making large general 
provisions against future bad 
debts because such provisions - 
unlike specific provisions against 
troubled loans - do not attract 
favourable tax treatment 
Banks would find a more stable 
pattern of profits attractive, even 
if the peaks in profitability were 
lowered, as shareholders would 
regard bank earnings as of 
higher quality and consistency. 

Mr Quinn said that greater sta- 
bility through anti-inflationary 


fiscal policy could lower banks' 
risks, and cost of capital, bnt be 
could not assume that banks 
“will not And other ways of dig- 
ging holes for themselves”. 

Speaking at the conference, Mr 
Eugene Ludwig, US Comptroller 
of the Currency, said it was still 
hard to estimate the true value of 
banks' financial derivatives in 
times of market turbulence. 

Mr Ludwig said that internal 
computer models, on which 
h anks rely to value derivatives 
such as swaps and options, often 
make different estimates of the 
values of complex Instruments 
when markets change suddenly. 

He said that, since such valua- 
tion requires great mathematical 
sophistication, “disagreement 
about the value of exotic deriva- 
tives after an unanticipated mar- 
ket change can be significant" 
Banks have grown increasingly 
reliant on computer models to 
assess the value of derivatives. 


Indian authorities yesterday 
stepped up efforts to stop the 
spread of pneumonic plague, 
while stru g glin g to contain the 
economic threat posed by the 
growing number of overseas 
travel restrictions. 

The disease claimed the lives of 
two people in the capital, Delhi, 
yesterday - the first reported 
deaths o utside the western city of 
Surat where plague broke out 
last week. The deaths pushed the 
official death toll to more than 
50, while the number of sus- 
pected plague cases rose to 2£00. 

Meanwhile, officials in the cap- 
ital moved to close all schools 
and cinemas to prevent the 
plague bacteria spreading - and 
advised residents to cover their 
faces with masks or handker- 
chiefs in crowded places. 

The authorities’ efforts have so 
far failed to reassure overseas 
governments and visitors. KIM, 
the Dutch airline, said that 25-30 
per cent of tourists who had 
planned to travel to India by 
KLM this week and next had 
called off their trips. 

In the UK, Thomson, the larg- 
est holiday company, cancelled 
its In dian tours scheduled for the 
first two weeks of October. Beach 
holidays in Goa would go ahead, 
although people who decided to 
cancel would receive full refunds. 

The move came as many Asian 
and Middle Eastern governments 
banned all flights to and from 
India, and several European 
states imposed new medical 
checks on passengers arriving 
from the country. 

The UK health department said 
its plague surveillance system 
had identified eight people show- 
ing flu-like symptoms “who may 
be infected". But the Communi- 
cable Diseases Surveillance Cen- 
tre said later that medical tests 
had cleared seven of them, while 
the eighth was unlikely to have 
the plague. 

Dr Kenneth Caiman, Britain’s 
chief medical officer, said the sys- 
tem would pick up more suspect 
cases. "Should any cases be con- 
firmed, they will be treated effec- 
tively with routinely available 
antibiotics,” be said. 

Mr Manmoban Singh, the 
Indian finance minister who is 
visiting London, attacked coun- 
tries that had imposed travel and 
trade restrictions on India. 


Chief calls for rethink. Page 9 I Indian food exports hit, Page 3 


Ferry probe I Video on end of Thatcher era 


Continued from Page 1 


last night after the Finnish-based 
Silja line said it would only load 
the ship by its aft doors until 
repairs had been carried out. 

"The door is not unsafe. It is 
not a visor-type bow like the 
Estonia and it is tightly sealed," 
said Mr Harri Kulovara. Silja 
Line's head of operations. 


Continued from Page 1 


Parliamentary Films, which pro- 
duced both the Thatcher and 
Benn videos, said he had consid- 
ered Mr Dennis Skinner, outspo- 
ken Labour MP for Bolsover, as a 
subject But he felt it would take 
too long to watch the miles of 
available footage to find enough 


funny moments for the video. 

It is far from certain how large 
the market is for these videos, 
especially for those on debates. 
Parliamentary Films h a s experi- 
mented with pilot films on the 
election of the speaker of the 
House and the wild mammals 
protection bill. The company's 
optimism that these obscure 


titles would go down well in 
schools has not been borne out 
There was not much public 
enthusiasm for them," said Mr 
Frater, a former communist from 
South Africa who now describes 
himself as "more left than right". 
By contrast, JUJOO people had paid 
£12.99 for the Benn video, which 
he said was “not bad going". 


FT WEATHER GUIDE 


Europe today 


i oao zQi i oip i ooo rfc&g & 


A vigorous zone of low pressure over southern 
Finland wilt move slowly east with rain and 
strong winds. Behind it, strong to gale force 
north-westerly winds will bring cold air across 
Scandinavia into Poland. In the cold but dry afr, 
Denmark and southern Sweden will have bright 
spells. 

Cloud crossing the western Mediterranean will 
reach France. Southern Fiance will have heavy 
showers and thunder storms, as will the east 
coast of Spain and the Saleanas. 

Heavy rain will also spread over Scotland and 
northern Ireland. Fine and warm conditions w3l 
persist over most of Italy and Greece, where 
afternoon temperatires will be about 30C. In 
Lapland, daytime temperatures will barely reach 
OC. 


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ygrr V- • - .• • 'j/T vr i vT; , 'V. ' * • /'.yv 




V A 
/»22 


Five-day forecast 

Cold air will flow south from the Norwegian 
Sea, reaching Scotland and northern Ireland on 
Monday. 

By Tuesday and Wednesday, the cold air will 
enter western and centred Europe. Rain win be 
followed by gusty showers and afternoon 
temperatures wiD fall sharply. The south and 
east will remain line and warm. Heavy rain In 
the Italian Alps on Sunday w6l slowly move 
away. 

TODAY’S TEMPERATURES 



XA.- v- - --1020 *' 





>”y m - y? ■ - £ 

/ Wwm front m m Cofcl front -A. ' Wfnd aa/tmd in kpm' ■ 0 ' 


SWuatfon at IS GMT. Temperatures maximum for day. F oreca st s by Mateo Consult of Ota Nethartanda 



Maximum 

Beffng 

fair 

21 

Caracas 

cloudy 

31 

Fans 

sun 

26 


CoWua 

Ballast 

rabi 

15 

Cardiff 

cloudy 

16 

Frankfurt 

fab- 

20 

Abu Dhabi 

fair 

37 

Belgrade 

sun 

26 

Casablanca 

fair 

23 

Geneva 

fair 

22 

Accra 

rain 

30 

BarUt 

fair 

15 

Chicago 

shower 

10 

Gibraltar 

sun 

25 

Algiers 

shower 

27 

Bermuda 

shower 

29 

Cologne 

fair 

16 

Glasgow 

rata) 

14 

Amsterdam 

cloudy 

16 

Bogota 

shower 

19 

Dafcr 

far 

30 

Hamburg 

drzd 

14 

Athens 

tut 

29 

Bombay 

fair 

33 

Dad as 

sun 

32 

HataWd 

ratar 

B 

Atlanta 

thund 

25 

Brussels 

fair 

17 

Delhi 

sun 

3 a 

Hong Kong 

sun 

30 

B. Aires 

cloudy 

17 

Budapest 

fab- 

23 

Dubai 

fair 

37 

Honolulu 

fab- 

32 

BJtam 

cloudy 

16 

CXhagen 

sun 

13 

Dublin 

drzd 

17 

Istanbul 

fab-. 

25 

Bangkok 

rain 

33 

Cairo 

fab- 

31 

Dubrovnik 

sun 

27 

Jakarta 

tab- 

32 

Barcelona 

thund 

22 

Cape Town 

sun 

17 

Edinburgh 

rain 

13 

Jersey 

fair 

17 










Karachi 

fair 

35 


More and more experienced traveller: 
make us their first choice. 


Lufthansa 


Kuwait 

LAng aim 

Las Palmas 

Uma 

Lisbon 

London 

LuxJboixg 

Lyon 

Madeira 


37 Naples 

25 Nsasau 

26 New York 
22 Nice 

28 Nicosia 

18 Oslo 
18 Paris 
22 Penn 
24 Prague 


25 

Rangoon 

shower 

32 

25 

Reykjavik 

sun 

7 

28 

RJo 

fair 

25 

15 

Rome 

fata 

28 

31 

S. Frsco 

talr 

22 

17 

Seoul 

fair 

23 

20 

Singapore 

cloudy 

30 

31 

Stockholm 

windy 

9 

26 

Strasbourg 

fair 

23 

16 

Sydney 

fair 

24 

11 

Tangier 

fair 

22 

20 

TalAvfv 

fab- 

30 

28 

Tokyo 

shower 

26 

28 

Toronto 

rata) 

14 

31 

Vancouver 

rain 

17 

24 

Venice 

sun 

24 

24 

Vienna 

sun 

21 

29 

Warsaw 

shower 

16 

12 

Washington 

tab- 

26 

22 

Wellington 

shower 

14 

18 

Winnipeg 

fair 

15 

IB 

Zurich 

fair 

21 


THE LEX COLUMN 


Clinging to 3,000 


S.G. Warburg’s decision to loner its 
year-end forecast for the ET-SE 100 
index is a salutary r eminder that this 
looks like one of those rare years in 
which equities actually fall. The con- 
solation, after another bumpy week, 
was that the market seems reluctant 
to hold below the 3,000 level where it 
yields 4 per cent That may not be 
especially generous compared with a 
10-year gilt yield of 8^ per cent Bat 
the relationship is comfortable since 
the accumulation of corporate liquid- 
ity should allow good dividend growth 
over the next year or so. 

The market’s prospects still seem to 
depend more on bonds than the out- 
look for earnings. For equity inves- 
tors, the art thus lies in picking out 
developments that would cause bonds 
to rally. Briefly one such moment 
appeared to have been reached yester- 
day afternoon with reports of progress 
towards a trade agreement between 
Japan and the US. In theory an agree- 
ment which led the yen to weaken 
might stimulate capital outflows from 
japan that would re-hqtdfy financial 
markets. But any trade agreement 
would have to be extraordinarily con- 
vincing far that effect to last A more 
plausible reason for the market's hurst 
of optimism was a large buy pro- 
gramme from a City investment hank. 

The more dapiWing truth is that a 
decisive turn in bond markets Is likely 
be triggered by developments that are 
negative for equities. Either the Fed- 
eral Reserve will raise interest rates 
high enough to slow down the US 
economy, or gilts will rally as con- 
sumer demand w eakens in the UK. 
Institutions inclined to put fresh 
money into equities at the start of the 
new quarter should consider the possi- 
bility that, when equities stabilise, it 
will still be bands that outperform. 


Share price relative to the 
FT-SE-A Afl-Share fhetoc 


230 . t - : --^7 




8ep 92 1863 

SoimMe FTCtaaphtte 


giving over-optimistic impressions of 
trading performance. 

The longer-term challenge is daunt- 
ing. NFC suffers from lack of direc- 
tion, poor morale, and a sagging share 
price - down 40 per cent since this 
time last year. There also seems to 
have been a degree of complacency 
amnng NFC’S management . 

Investor disillusionment is near 
complete. A substantial rights issue 
and a big restructuring programme 
have been followed by repeated profits 
downgrades. If the group is to recap- 
ture investors' confidence it will need 
rapidly to implement its UK restruct- 
uring programme, demonstrate some 
ability to harness the economic recov- 
ery, and begin to replicate its logistics 
successes in the US and continental 
Europe. But no matter what the new 
management achieves, it will never 
recreate NFC’s lost mystique. 


year. Poor conditions in equity and 
bond markets, from which insurers 
derive their investment income, have 
also soured sentiment The sector is 
down nearly 20 per cent against the 
market and the yield premium has 
climbed to 40 per cent close to a his- 
toric high point. Only tobacco has 
done worse, and that classification is 
dominated by BAT, a company with 
large insurance interests. 

This performance contrasts oddly 
with the record profits being gener- 
ated this year. The insurers are reap- 
ing the dual benefits of favourable 
claims experience and rates which are 
still a long way above the last cyclical 
low-point. But Investors are rightly 
worried about the very pace of recov- 
ery after three years of losses. The 
rebound is so pronounced that it has 
emphasised the accelerating cyclical- 
ity of the sector. 


UK Insurance 


NFC 


For a logistics company that sur- 
vives on getting goods to the right 
place at the right time, the recent 
comings and goings at NFC have been 
particularly painful. The group has 
now lost a chairman and chief execu- 
tive within 10 weeks of each other. 
That said, the rapid appointment of 
Sir Christopher Bland as NFC’s chair- 
man is to be welcomed. It allows him a 
significant role In the most urgent 
problem confronting this mice glam- 
our stock - the choice of a new chief 
executive. Perhaps the presentation 
skills that Sir Christopher picked up 
at LWT will also help NFC to avoid 
such elementary errors as consistently 


Consumers are unlikely to feel the 
new per cent tax on insurance pre- 
miums which takes effect today. Pre- 
miums on some personal Hnaa have 
fallen by between. 5 per cent and 25 per 
cent since the cyclical peak last year. 
Given intensely competitive condi- 
tions in the industry, the pressure on 
rates is still downwards and Insurance 
companies will have to absorb the tax 
themselves. Favourable claims experi- 
ence in sectors such as theft; weather 
and fire insurance over the past 2 % 
years will also put pressure on insur- 
ers to reduce rates further. 

Fears about the sustainability of 
insurers' income have been the chief 
factor behind the under-performance 
of the insurance sector during the past 


BAe/VSEL 

A takeover of VSEL by British Aero- 
space, currently under discussion, 
would make industrial sense. VSEL’s 
capacity to thrive as an independent 
warship manufacturer is limited. Its 
future hangs cm winning the Royal 
Navy’s £2.5bn contract to build the 
next batch of Trafalgar submarines. 
But it will have a hard job convincing 
the Ministry of Defence that it is large 
enough to bear the risks of a fixed- 
price contract BAe would provide 
VSEL with the necessary size. Its 
international reach should also help in 
marketing VSEL’s products overseas. 

A takeover would fit in with BAe's 
ambitions to extend its role as a mili- 
tary contractor from aviation to naval 
projects. So far, it has only a small 
position in naval systems. But the 
skills it has developed in managing 
complex aerospace contracts could be 
transferred to warships. The financial 
structure of the proposed deal also has 
appeal. By paying with Its own shares, 
BAe would acquire the £320m of cash 
in VSEL’s balance sheet and improve i 
its gearing. Such financial engineering | 
would amount to a disguised rights ; 
issue, but it should be one accom- 
plished without a hefty fall in its 
share price. 

None of this means a deal will be 
clinched. The two companies could 
easily fall out over how much VSEL is 
worth. And it is possible GEC may 
wade in and spoil the party- That, 
though, looks unlikely. GEC still has 
ambitions to take a bigger dice of the 
UK defence industry. But its main tar- 
get remains BAe, not VSEL. 


r- ' -V- ~ 



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FINANCIAL TIMES WEEKEND OCTOBER 1 /OCTOBER 


2 1994 


WEEKEND FT I 



SECTION II 


Weekend October 1/October 2 1994 


WmZ 


I.-:;.-'.*..:".. 
















C->‘ 


Wanted: wonder of the age 









.-r 


*&■ ' 


T he countdown has 
started. In just over five 
years the world will be 
celebrating, well, the 
party of the millen- 
nium. And if new year’s eve 1999 
does not go off with a suitably seis- 
mic bang, pedants, who know that 
the third millennium starts at mid- 
night on January 1 2001 can have a 
second crack a year later. 

The British government is among 
the purists. Its millennium celebra- 
tions climax at the end of the year 
2000. And it is going to be some 
junket it has set aside a possible 
£1.6bn to make sure that it is an 
event that will be remembered for 
at least the next century. The joy of 
it all is that, in theory, not a penny 
of the cost will be paid for by the 
government - or the taxpayer. It is 
coming from that seemingly inex- 
haustible milch cow, the National 
Lottery. 

The lottery is one of John Major's 
footnotes in history. Margaret 
Thatcher, the former premier, was 
implacably opposed to government 
sponsored gambling: it disturbed 
her non-conformist soul. Major 
quickly recognised the inanity of 
the UK being the only developed 
nation without a lottery and gave 
the go-ahead. He has proved a reli- 
able friend. Only last month he con- 
firmed his support. “The money 
raised by the lottery will not 
replace existing government fund- 
ing - Treasury, please note." 

But if John Major is midwife to 
the lottery. Lord Palumbo, when 
nhairman of the Arts Council, is 
given credit for dreaming up the 
idea that a fifth of all the money 
raised for good causes from the lot- 


tery should go into a millennium 
fund. His main concern was patch- 
ing up the great national monu- 
ments, especially the cathedrals and 
grand mansions , as the tired old 
century came to a close, in time for 
a fresh start in the new mfllennhim- 

The concept soon developed a 
momentum of its own and until the 
end of 2000 the TrtiTlominim fund 
will he a power In the land. Then 
the other lottery beneficiaries - the 
arts, the heritage, sport and chari- 
ties - will subsume its portion, and 
all that will be left is its legacy. 

Just as the ffllHpnniTiTn fund 
arrived rather suddenly from 


sington museums, and its dim echo, 
the 1951 Festival of Britain, which 
bequeathed the little loved South 
Bank arts centre. 

A few certainties about the mil- 
lennium are emer gin g through the 
haze. Undoubtedly, there will be 
some grandiose building projects 
but not nearly as many as first 
envisaged, at least by the directors 
of our great museums and galleries. 
Around half the millennium's cash 
will go on a dozen enduring monu- 
ments, fairly spread across the 
country. The other half will be 
spent on more transitory feel-good 
experiences which, ideally, would 


refurbishment of existing b uildin gs, 
like the British Museum's £l00m 
plan to enclose its inner court yard: 
perhaps the National Heritage Fund 
could help here. 

The millennium fund ideally 
wants new b uilding s, and mind- 
expanding ones at that, something 
on the lines of the Crystal Palace of 
1851 or its pipsqueak 1951 successor, 
the Skylon. It is unwilling to pro- 
vide money when there are already 
established institutions which exist 
to help. But it will provide endow- 
ment funds, so that anything really 
innovative that emerges does not 
have to struggle to survive. Who 


Now is the time for all good citizens to come to the aid of the (millennium) 
party. But only mind-blowing ideas will do, says Antony Thorncroft 


nowhere so it carries little baggage. 
There has been only one attempt to 
define its objectives - by Peter 
Brooke, the former Heritage Secre- 
tary, who guided the lottery on to 
the statute book. His vision was 
warming but woolly. 

“Our millennium projects are 
probably going to be those that 
would not otherwise happen.” 

“Above all. the millennium com- 
mission’s legacy should form a per- 
manent enhancement of our 
national heritage. 

"We should seek to capture the 
spirit of our age in enduring land- 
marks that symbolise our hopes for 
the future.” 

He took as his benchmark the 
Great Exhibition of 1851, which 
bequeathed such manmiak as the 
Crystal Palace and the South Ken- 


directly affect the lives of as many 
people as possible. 

The capital projects are up and 
running, at least in blueprint, 
before the first lottery ticket has 
been sold (in November) and the 
first donations to a good cause 
made, probably next June. It is 
already apparent that some highly 
fancied schemes will be turned 
down by the millennium fund com- 
missioners. a nine-strong band of 
the Great and the Good. 

They are not inclined to help 
Covent Garden tn its £100m rebuild- 
ing appeal: that is a decision for the 
Arts Council lottery staff. They are 
unimpressed by a proposal for a 
great national sports stadium in 
Manchester that is for the Sports 
Council to consider. They are wor- 
ried by schemes that involve the 


knows the UK might have the finest 
equipped rock stadium in the world 
in five years, or a technology 
museum which places foreign sci- 
ence parks back in the Dark Ages. 

It is hard to find current projects 
which are copper-bottomed certain- 
ties for millennium aid. For exam- 
ple. Cardiff Opera House is a strong 
candidate. Wales must have one big 
millennium building, geography dic- 
tates that Wales is the land of song; 
Cardiff Bay is trying to regenerate 
itself; and the local arts TnafiH has 
got its act so organised that it has 
already chosen an architect Zaha 
Hadid, on the basis of her challeng- 
ing design. 

The only doubt over Cardiff 
Opera House is not that the pro- 
posed gigantic glass building will 
appear too 20th century modernist 


and therefore dated, for the com- 
missioners, but that they decide 
that the Welsh Office, or the loca. 
council, or commercial developers 
are already in place to fund such : 
development. Who is to say tha\ 
opera houses might not be old ha<. 
in the 21st century? 

Another strong contender is thi- 
South Bank Centre in London. Is. 
has asked Richard Rogers, one o' 
the most fashionable architects o r 
the day, to come up with ideas ancl 
he has proposed a semi-translucerr. 
umbrella to cover the existing faded 
buildings. A nationally sensitive 
site, with memories of past celebra 
tions; a big name architect; plus the 
opportunity to hold the miUennimr. 
festival there, that the commission 
ers might think essential to cele- 
brate the big year - the South Bant; 
looks a good bet 
As does the Tate Gallery of Mod- 
em Art on Bankside. Perhaps it is 
too near the South Bank for com 
fort, but the UK lacks a nationa. 
gallery of modem art and we are 
supposed to be looking forward ir. 
2000. This may enable the commis- 
sioners to forget that the Tate is 
planning to move into an existing 
building, the old Bankside power 
station, much of which will be 
retained. The feet that the Tate has; 
been quick off the mark, and is 
likely to be able to raise perhaps 
half the £8Qm needed from its owr. 
resources, may sway the commis- 
sioners, who expect big projects to 
conjure up some matching fending 
None of these buildings, currently 
the fancied runners, really lift the 
im ag ination. It is hard to think tha 1 : 

Continued on Page DL 


CONTENTS 


Family finance : How to protect 
your pension rights 111 


Food & Drink : The pick of the 
world's tea leaves XJI 


Perspectives : Lunch with an Essex 
gentleman XIII 


Sport: A little bit of argy bargy on 
the yacht XV 


Travel: Frozen ink in glorious 
Antarctica XVII 


Books: Andrew Neil examines the 
Oxbridge conspiracy XX 



A Gustavian chair to go with the 
self-assembly wardrobe: Ikea 
develops a sense of history Page X 


Aits 

BooM 

Brtdflo, Owes, CrosswmU 
Fashion 

Franco 4 iho Family 

Food A Dnnk 

Gawfcrtfifl 

How To Spend It 

ujrtwa 

Jama Morgan 

Mohmng 

PrivafaViow 

Propurtyr 

Swing 

SmaH Birsnwra 
Spun 
travel 
TViRaa® 


>C 3 -XXH 

XX 

wail 

XI 

UI-VUI 

»i 

XIV 

X 

XXIV 

XI V 
XXIV 

XIX 

IX 

IX 

XV 
xvn 
XHtl 


The Long View / Barry Riley 

Global growing pains 



Living on the 
never-never has become 
expensive. This week, 
Britain's government 
paid an interest rate of 
per cent when it auc- 
tioned its latest £2bn 
issue of 10-year 
gilt-edged bonds. At the 
present inflation rate, 
the borrowing cost in real terms is 6% 
per cent. 

No wonder share prices have been 
flagging in the face of such determined 
and price-insensitive competition for 
savings; the stock market has just tot- 
tered to the end of a grim September in 
which the FT-SE 100 index has lost 8 
per cent. Yet, this is not a specially 
British problem. The key US long Trea- 
sury bond yield has crashed through a 
resistance point and is nearing 8 per 
cent In various parts of the globe, big 
mistakes are being made by govern- 
ments and by investors. 

First, however, the good news. As the 
latest IMF World Economic Outlook 
makes clear, the global economy is 
looking quite vigorous. The industrial 
countries will grow at 2.7 per cent this 
year and the developing countries at 6 
per cent - with the emphasis on Asia 
where the pace is around 8 per cent 
Next year, with eastern Europe also 
pulling round, the global economy is set 
to expand by 3.6 per cent, which would 
make it the best year since 1988. 

Such a strong revival is a notable 
achievement, given the severity of the 
debt crisis that has affected so many 
countries. The recent recession was 
mild in comparison with the depres- 
sions which have plagued the global 
economy periodically in the distant 
past Governments have been success- 
ful in preventing the kind of financial 
collapse which led to the slump of the 
1930s - but the debt, instead of being 
wiped out, lives on. 

Private sector balance sheets often 
remain stretched; this is the reason 
why the British housing market is dead 
in the water. Very often, too. private 
debts have simply been transformed 
into public sector liabilities. Saving the 


Swedish banking system has under- 
mined the Swedish government's own 
creditworthiness. Too many govern- 
ments have assumed they can tap an 
unlimited pool Of global savings, per- 
mitting them to run deficits which can- 
not he financed out of domestic savings. 
They still have no sense of urgency. 

Last year, speculative buying of 
bonds by banks and hedge funds, 
financed by cheap credit created by the 
US Federal Reserve, concealed the prob- 
lem. But that game ended abruptly last 
February and now Japan, the dominant 
source of global savings, has been 
exposed as an untrustworthy link in the 
global financial chain In 1987, the time 
of the "wall of money", the Japanese 
bought $137bn of long-term securities, 
mostly dollar bonds. Up to July this 
year, the corresponding total was only a 
net $8bn. 

The Japanese government’s support 
of a fundamentally insolvent and noto- 
riously opaque financial system has 
prevented an economic slump. But this 
has allowed Japanese industry to go on 
pumping out goods at a loss, and has 
generated a huge trade surplus and 
matching currency bubble. Foreign cur- 
rency losses incurred by Japanese 
investors in the recent past have fright- 
ened them off investing overseas. But 
they are now missing a golden opportu- 
nity to buy cheap bonds issued by over- 
stretched western governments. 

I nstead, they are sitting on domes- 
tic assets while liquidity accumu- 
lates in Japan from a trade sur- 
plus running at some $l30bn a 
year. This has to flow out somehow 
through the capital account; in feet it is 
largely being recycled through central 
bank intervention, but into short-term 
money market-type assets rather than 
bonds. Hence this year's apparent 
“shortage" of long-term capital. 

The optimistic view would be that 
higher taxes, felling government defi- 
cits and moderate economic growth will 
allow the imbalances to be corrected 
over several years. Perhaps the rapid 
growth in the developing world will, 
nevertheless, keep the real cost of capi- 


tal relatively high. But if the Japanese 
institutions buy foreign bonds again on 
a large scale, the value of the yen will 
come tumbling down and the log-jam 
will have been broken, to everyone's 
satisfaction. 

Alternatively, there is the disaster 
scenario: that bond yields continue to 
riirnh and central banka go on misinter- 
preting this trend as reflecting fears of 
inflation. Higher interest rates will slow 
down the western economies, causing 
budget deficits to widen again. The 
eventual result mil be a global break- 
down of financial confidence. 

To most people, the spectacle of mar- 
ket screens bathed in red while the 
global economy is growing healthily is 
simply illustrative of financial hysteria. 
But the markets reflect accurately the 
submerged financial pressures. 

A fundamental message for western 
governments is that the budget deficits 
which they assumed would stimulate 
their economies will have the reverse 
effect if they cannot be financed out of 
savings. In the UK, this boils down to 
the choices facing pension funds, which 
are the country’s largest savings insti- 
tutions but have very little new cash 
coming in. If they buy government 
bonds, they will have to sell equities. 
Thus win the private sector of the econ- 
omy be crowded out. Governments 
should reduce their deficits and bring 
down interest rates. 

Higher short-term interest rates may 
actually make it more difficult for gov- 
ernments to sell their bonds: this has 
become evident in the US, for instance, 
where short-term savings deposits are 
now more attractive and money is no 
longer flowing into mutual funds that 
invest in fixed income securities. More 
radical thinking is required: the issue of 
yen-denominated bonds, for instance, so 
that western treasuries accept the cur- 
rency risk that is being shunned by 
Japanese institutions. 

This Black September in the securi- 
ties markets has resulted from the 
determination of too many govern- 
ments to fight the wrong battle while 
feeing in the wrong direction. They still 
have not looked behind them. 


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INVESTMENT MANAGEMENT 

[ntcmatioml Department 

Tin admuonent b mud by Jama Capri tc Co. Lunrtrd, a member of SFA and the London Siorit Exehanpr 
Mtmher HSBC Grrup 





mg data lor Me monitoring oi uu-gcis, ana Die mr mu uuiuuiug ui waste iMt-noginis 


II WEEKEND FT 


FINANCIAL TIMES WEEKEND OCTOBER 1/OCTOBER 2 1994 



London 

Equities still 
in thrall to 
bond markets 

Andrew Bolger 


Commodity prices bounce 

Economist Commocfity Index (all Items S prices) 



1907 88 89 SO 91 92 93 94 

Souk*: EMmtreenr - ■ 


Serious Money 

Investments that 
penalise the poor 

Gillian O f Connor, personal finance editor 


■ Gilt issues - best value v tax status 


Your espial grin on a gHt - a UK government band - tan tree. However, you pay tax 
on tfw interest Tbsretere, flBs wWeft CM fvw a Nghw proportion o< ttMr totalietwn as 
capital gain are mow ta efficient - and - other Wnfls being equal - more attract** to 
higher rate taxpayers. 


NON TAXPAYERS 

Stock 

Pries 

YWd « 

MMBtyft 

C0NVBITONAL <5yr 

Exchequer 12JS%, 1999 

112% 

844 

X47 

5-10yr 

Treasury 3.75% 2002 

103% 

9-05 

544 

IIMSyr 

Treasury 11.75% ZD03/D7 114V* 

9.25 

036 

>15jt 

Comrendon 9% 2011 

102% 

8.76 

050 

WDEX UNKH) 

Index Unlaid 2% 1996 

198ft 

7.45" 

5JX)§ 

104 


Index linked 4ft% 1998 

106ft 

8.61" 

4.1 7§ 

320 

2SK TAXPAYERS 

Slock 

Price 

Yield ft 

wany% 

CONVBfnOfUL <5yr 

Treasury 9% 1998 

89% 

7.06 

423 

6-lOyr 

Treasury 7% 2001 

90ft 

7.03 

542 

10-15yr 

Treasury B% 2002/06 

90% 

633 

745 

>T5vr 

Tressny &25% 2010 

79W 

6.83 

526 

WDEX LINKS) 

tadex Unfcsd 2% 1996 

196ft 

192" 

4.48§ 

1.84 


index Linked 2% 2006 

167ft 

5.88* 

3.44§ 

aca 

40% TAXPAYERS 

Slock 

Price 

YWd % 

Yttatttty ft 

CONVENTIONAL <Sfl 

Thnstsy 6% 1998 

89ft 

6.10 

440 

5-10JT 

Treasury 7% 2001 

90% 

6.91 

542 

10-lSyr 

Treasury 7.75% 2006 

92 

558 

7.43 

>15p 

Tnastny 833% 2010 

79% 

5.74 

8JB 

WDEX UNKH) 

Index linked 2% 1996 

198ft 

6.61* 

4.1 7§ 

124 


Index Linked 2 Jf% 2001 

166ft 

5.45" 

3.02§ 

6.13 


YWd is redemption yMd and takas accut of ay change In the capital value war period to maarty. 
Whaty is a meaue of the omriMfy of be stock price to changes fn yWd. "Money yWd (am* 
Wtanon ssamadt § reel yMd. Source: BZW 


J ust how quickly Ls the 
American economy 
recovering? That may 
seem an odd preoccu- 
pation for the UK 
equity market, but it was the 
do min ant concern during a 
week in which traders and 
investors remained in thrall to 
the international bond mar- 
kets. 

The FT-SE 100 sank below 
the 3.000 mark amid fears that 
the rapid pace of US growth 
might cause the Federal 
Reserve to put up interest 
rates again, which would 
increase pressure for another 
rise in UK borrowing costs. 

All eyes were fixed on 
Wednesday's meeting of the 
Fed's Open Market Committee. 
Shares shed 20 points in the 
preceding two days, but then 
recovered when the meeting 
passed without any rise. How- 
ever, Thursday's news of an 
upward revision in American 
growth rates - plus a 9.7 per 
cent leap in August's new 
house sales in the US - was 
enough to wipe 46.2 points off 
the FT-SE 100 index. 


Bond traders are concerned 
that resumed over-rapid 
growth could lead to inflation, 
and indeed the rapid increase 
in commodity prices illustrated 
by the chart gives some 
grounds for concern. Yet there 
was little in this week's corpo- 
rate results to suggest that 
retail prices are on the up - 
particularly in the housing 
market 

Shares in Tarmac, Britain's 
second largest housebuilder, 
fell after the group said house 
sales had halved during the 
two weeks since UK interest 
rates rose by a half percentage 
point 

However, shares in Beazer 
Homes rose after the fourth 
largest housebuilder said that 
sales had risen by a fifth since 
July 1 and had not been dented 
by the recent rise in interest 
rates. Victor Benjamin, Bea- 
rer’s chairman , said: “While it 
is too early to evaluate the out- 
come of the recent interest rate 
increase, we believe that in the 
current market it is uncer- 
tainty over interest rates 
rather than the actual rate 


which unsettles consumer con- 
fidence.” 

One place where housebuildr 
ing continues to thrive is Ger- 
many. Redland, the British 
building materials group, said 
it would seek a Frankfurt stock 
greftiangft Hating after announ- 
cing a 40 per cent rise in Ger- 
man profits in the first half of 
this year. The group has so far 
seen no sign of slackening in 
demand in Germany, where 
sales have been boosted by 
repairs to homes in the east 
and the accommodation 
demands from large numbers 
of immigrants to the west. 

UK retailers also reported lit- 
tle scope to increase prices, in 
spite of improved sales leveL 
Sears, which owns the London 
department store Selfridges 
and the Dolcis shoe chain, 
expects the economy to con- 
tinue a steady but slow 
improvement House of Fraser, 
which owns department stores 


around the country, said sales 

in September had recovered 
strongly after a poor August It 
said the recent rise in UK 
interest rates had produced no 
marked effect but warned that 
a further rise could be damag- 
ing. 

One bright spot for belea- 
guered parents came with the 
news from Sears that its Olym- 
pus sports chain had suffered a 
dip in sales. Apparently youth 
fashion has moved away from 
trainers. 

Consumers can also expect 
more bargains in the book- 
shops soon, following the deci- 
sion by Hodder Headline to 
become the second publisher to 
leave the voluntary agreement 
that allows publishers to set 
minimum prices for most 
books for six months after pub- 
lication. Reed Books, the pub- 
lishing arm of Reed Elsevier, 
already publishes its books 
“non-net” and says market 
share has increased as a result 

Dorfxng Kindersley Holdings, 
the publisher of illustrated ref- 
erence books, said it was disap- 
pointed by fins latest blow to 
the agreement It believed the 
agreement's abandonment 
would result in the closure of 
smaller, independent book- 
shops and the availability of 
fewer titles. 

The biggest deal of the week 
came from Reckitt & Column 
which put its mustard business 
up for sale to help finance a 
drive to become one of the 
world's leading suppliers of 
lavatory cleaners and other 
household products. Reckitt 
announced the $l-55bn (£980m) 
purchase of L&F Household, a 
leading US supplier of house- 
hold products, from Eastman 
Kodak, and offered for sale Col- 
man's mustard and Robinson’s 
barley water. 


Sir Michael Column, chair- 
man and last family member in 
the business founded five gen- 
erations ago in a Norwich mill, 
said it was a difficult decision 
to sell Colman's. But he 
believed the business would be 
better run by a group with a 
strong food strategy now that 
Reckitt was concentrating on 
disinfectants, cleaners, air 
fresheners and insecticides. 

The market rallied sharply 
yesterday afternoon and the 
FT-SE 100 ended the week com- 
fortably above the 3,000 mark. 
However, the outlook for the 
fourth quarter’s trading, 
starting on Monday, remains 
uncertain. 

The broker S G Warburg 
argues that the pressure on 
bonds is «tming from stronger 
than expected growth around 
the world, which points to a 
bullish environment for equi- 
ties on any strategic view. 
However, it concedes that “the 
strong growth in analysts' esti- 
mates (which remain solid 
autumn) needs to be set 
against the prospect of contin- 
ued uncertainty in bonds over 
the next 12 months.” 

Warburg has accordingly cut 
its year-end FT-SE 100 forecast 
from 3,500 to 3£5Q - “a more 
plausible central assumption," 
in view of the lack of investor 
confidence in the bond mar- 
kets. Warburg now reckons 
that the 3,500 mark will not be 
reached before the end of 1995. 

The unsettled trading of the 
past week - which saw low 
volumes and few significant 
corporate results - demon- 
strates that UK equities 
remain vulnerable to any tight- 
ening of interest rates. It is for 
this reason that the most sig- 
nificant item in most traders 
diaries will be next Friday's US 
employment figures. 


E ven Autif, the unit 
trust trade associa- 
tion. sounded 
rather surprised at 
its own restraint 
this week: it ls not lobbying 
the chancellor of the exche- 
quer to raise the ceilings on 
personal equity plans in his 
November Budget Like Sher- 
lock Holmes' dog that failed to 
bark, Autif s silence speaks 
volumes. 

Anyone who can afford to 
take full advantage of the 
annual Pep allowance already 
has a remarkably good deal. 
The worry must be that some 
future chancellor will feel it is 
far too generous and reduce or 
remove the concessions. For, 
like most tax concessions, Peps 
are widening the gulf between 
rich and poor. 

This week, the Institute for 
Fiscal Studies produced a 
research paper pointing out 
that the savings of the poor 
tend to incur more tax than 
those of the rich. This is 
because the poorer half or the 
population holds 60 per cent of 
its assets in interest-bearing 
acraimts at banks and building 
societies, which are taxed com- 
paratively heavily. But the 
richest part of the population 
holds much of its wealth in 
specialised investments which 
enjoy generous tax treatment, 
such as Peps and direct hold- 
ings of shares anri unit trusts. 

Where the poor have bene- 
fited, along with the rich, is 
through home ownership. But 
house price booms may be a 
thing of the past 
If this year's Budget leaves 
Peps alone, most investors will 
rqjoice. But in the long term, 
would it not be better if chan- 
cellors gave up using tax to 
distort investment patterns? 

For a start, tax incentives 
hardly ever fulfil their creators 
intentions. The business 
expansion scheme was 
intended to encourage individ- 
uals to invest In developing 
small businesses - and ended 
up sucking many people into 
illiquid property Investment 
just as the market turned 


down. Peps were intended to 
encourage individuals to invest 
directly in the shares of quoted 
companies, but they became a 
success only when they were- 
transformed into vehicles for 
the packaged savings market 
Second, tax incentives are - 
as the IFS shows - of the 
greatest use to those who can 
afford expert advice. And, 
finally the search for tax-effi- 
cient investment leads to 
investment that is, too often, 
distorted and, at worst, just 
plain bad. 

□ □ □ 

This comment from a broker 
seemed either cryptic or cyni- 
cal: “It’s easier to justify buy- 
ing gilts on a personal finance 
basis then on a market basis.” 
But what he meant was clear 
enough. The actual and proba- 


ble returns on gilt-edged stocks 
look attractive compared with 
those available elsewhere. But 
most people are expecting 
interest rates to rise further on 
both sides of the Atlantic, and 
gilt prices nearly always fall 
when interest rates rise. So, 
gilts are likely to get even 
cheaper over the next few 
months. 

Does this matter? Buying at 
the bottom and selling at the 
top is an unrealistic ambition. 
Our table, courtesy of BZW, 
suggests which gilts look most 
appealing at present to differ- 
ent types of taxpayer. 

The yields show what you 
can actually expect to receive 
net of whatever your relevant 
tax rate is - provided you hold 
them until maturity. The vola- 
tility rating reflects the market 
risk: the higher the rating, the 
greater the risk. 


HIGHLIGHTS OF THE WEEK 



. Price 
Vday 

Change 
on week 

1994 

High 

1994 

Low 


FT-SE 100 Index 

3026.3 

*1.9 

3520.3 

2876.6 

US Interest rate worry 

FT-SE Mfd 250 Index 

3494.8 

-66.1 

4152.8 

3363.4 

Buyers withdraw 

Body Shop Inti 

225 

+19 

264 

195ft 

NatWest positive note 

British Aerospace 

452ft 

-12ft 

584 

390 

Bid talks with VSEL 

British Airways 

361 

-12 

488ft 

344 

Associate psssee dividend 

Frogman Estates 

440 

+21 

536 

407 

Bumper figures 

Recldtt & Caiman 

541 

-49ft 

714 

533 

L&F acquMtion/£230m rights 

Scottish Hydro- Etoc 

335 

-51 

477 

322 

Register's review disappoints mkt 

Scottish Power 

356 

-31 

466 

337ft 

Regulator's review disappoints mkt 

SharaDnk Inv Serv 

206 

-37 

425 

187 

Warns of £(L5m Interim kiss 

Smith New Court 

374 

-42 

496 

342 

Market turbutance/low turnover 

TransTec 

49 

-19 

105 

45 

Poor results 

UnlChem 

260 

-35 

313 

258 

CS8m rights Issue 

VS EL 

1210 

+245 

1226 

980 

Btd approach from BAa 

Wellcome 

649ft 

-34% 

731 

498 

FDA criticism 


AT A GLANCE 


Finance and the Family Index 

Pensions: the effect of a landmark court verdict III 

Gold/Week ahead /New issues/ Directors' dealings. IV 

How recent Investment trusts launches have fated. -...VI 

Immigration and Investment/Life products survey /Annuities ....VII 
Shake-out In life offices /CGT/ Best rates/Q&A briefcase VIII 


Unit trust sales Gilt prices 

Net Investment (Ebri) 10-year benchmark bond 



Source; AUTIF Source: FT GroptVM 

Investors favour UK 
equity income funds 

Investment in unit trusts last month rose to a net £773m from 
£646m In July but it was below August 1993's net Investment of 
£981 m. 

Private investors accounted for 55 per cent of the total with UK 
equity income funds as their favourite. The Association of Unit 
Trusts and Investment Funds, which released the figures, said 
that the number of unitholder accounts crossed the 6m threshold 
for the first ome, to 6.04m. 

The figure has risen by one-third since January 1992 against a 
background of low Interest rates, as private Investors have turned 
to equity-related products in the search for better returns than in 
the building society. 

Gilt auction success 

Prices of UK government stock - gilt-edged - continued 
generally weak, pally because of the fall in US Treasury bands 
on Thursday. But earlier In the week the government's £2 bn gilt 
auction had drawn an unexpectedly strong response. Demand 
was much as predicted. But an unusually large proportion of the 
stock on offer went to long term Investors - life insurance 
companies and pension funds. And some market-makers had to 
scrabble round buying stock after the auction. In the end the 
Bank of England had to sell them some. 

Octobers a taxing time 

You have until the end of the month to fill in your tax return for 
1993-94. The forms should be returned by October 31 to avoid 
the risk of being charged interest at 6.25 per cent on any 
outstanding tax. Once the Revenue receives the form. It will send 
out an assessment and you have 30 days to appeal against it 

Benefit advice line 

Help the Aged says pensioners are missing out on state benefits 
worth about £400m a year. The charity says government 
statistics show that about 500.000 of the poorest pensioners are 
eligible for income support and other benefits, but do not claim 
them. Help the Aged has a free telephone advice line to help 
with this and other issues affecting the elderly. Call 0800- 
289 404 for advice. 

Smaller company shares decline 

Smaller company share values continued to decline this week. 
The Hoare Govett Smaller Companies Index (capital gains 
version) dropped 1.5 per cent to 1637.33 over the week to 
September 29. 


Wall Street 


Waiting for Greenspan to hit the brakes 


Dow Jones Industrial Average 

4,000 — — : — 



Source: FI Graph#* 1984 


I n spite of the Federal 
Reserve's decision this 
week not to pnt np inter- 
est rates again, Wall 
Street analysts are convinced 
that it is now a question of 
when, not if, the central bank 
will next tighten monetary 
policy to slow down the 
economy. 

Although share prices 
posted solid gains for three 
consecntives days after the 
Fed’s open market committee 
meeting on Tuesday closed 
without a rate increase, few 
investors, analysts or dealers 
believe that policy will stay on 
hold for very long. Judging by 
the most recent data, the 
economy is still growing 
too strongly for the Fed’s 
Hiring. 

Looking hack, it now seems 
that the only reason the FOMC 
did not sanction a rate rise at 
its meeting was that its mem- 
bers had no inkling of how 
strong Thursday’s gross 
domestic product and home 
sales statistics were going to 
be. If they had known - or 
guessed - that second quarter 
GDP growth would be revised 
upwards from 3.8 per cent to 
4.1 per cent and that sales of 
single-family homes would 


jump by 9.1 per cent in 
August, then they would prob- 
ably have given Fed chairman 
Alan Greenspan an immediate 
green light to raise interest 
rates by another 25 or 50 basis 
points. 

The Fed’s goal is to choke 
inflationary pressures in the 
economy by slowing the rate 
of -annual growth to about 2.5 
per cent. The difference 
between 2.5 per cent and 4.1 
per cent is just too great to be 
ignored, even if the data on 
prices have yet to show signs 
of resurgent inflation. 

This means that investors in 
stock and bond markets will 
have to play a waiting game. 
The FOMC is not scheduled to 
sit again until November 15, 
and although on four of the 
five occasions that the Fed has 
raised rates this year it has 
done so immediately following 
an FOMC summit, there is 
nothing to stop Greenspan 
from initiating a rate Increase 
before the next FOMC 
meeting. 

After the Fed left policy 
unchanged after the July 6 
FOMC gathering, it was 
revealed that the committee 
had decided at the time to 
grant the Fed chairman the 


freedom to raise rates in the 
period between FOMC meet 
tags if he felt it was necessary. 
Analysts believe that an Tues- 
day, Greenspan was given sim- 
ilar discretionary powers. 

The only question is: will 
the rate increase come at the 
end of next week, after the 
September employment report 
is released, or will the Fed 
hold its fire until the week 
after, when figures on infla- 


tion, retail sales, industrial 
production and capacity utilis- 
ation are all due to be 
released? 

A majority of analysts are 
betting that the Fed will wait 
until the inflation figures are 
released, although very strong 
jobs data could trigger an 
early tightening. 

Either way. trading on the 
stock market is likely to be 
overshadowed in coming 


weeks by fear of a rate 
increase. The Dow Jones 
Industrial Average has been 
stuck between 3300 and 3,900 
for more than a mouth, and it 
is difficult to see how 
blue-chip stocks can break up 
and out of that range. 

It is easier to imagine a deri- 
sive, downward shift in prices, 
particularly if the bond mar- 
ket pre-empts another Fed rate 
increase by sending the yield 
on the benchmark 80-year 
bond - the most widely-fol- 
lowed measure of long-term 
interest rates - above 8 per 
cent 

The 30-year yield closed this 
week at just over 7.8 per cent, 
its highest level since Jane, 
1992. A s tr o nger-than-expected 
September jobs report would 
probably push the yield up 
over 7.9 per cent with signs of 
rising inflation in the pro- 
ducer and consumer prices 
data, and an accompanying 
rate increase from the Fed, 
likely to shove it through the 8 
per cent mark. At that point 
sentiment in the equity mar- 
ket could turn nasty. An over- 
heating economy, a fresh 
tightening of monetary policy, 
and rising long-term interest 
rates would be an unpleasant 


combination for stocks. 

This gloomy scenario, how- 
ever. does not take Into 
account one factor that should 
have a positive impact upon 
share prices in the next few 
weeks - corporate earnings. 
The third quarter reporting 
season will begin in earnest 
soon, and every indication 
suggests that it will be a goad 
one for US companies. 

Sustained emphasis upon 
cost containment and 
improved efficiency, rising 
consumer spending, the strong 
domestic economy and resur- 
gent economies overseas 
should have bolstered corpo- 
rate earnings during the third 
three months of the year, and 
are likely to do so into the 
final quarter. 

Rate increase or no rate 
increase, US companies are 
making money, and providing 
a welcome safety net for inves- 
tors fearful erf a large market 
slide. 

Patrick Harverson 

Monday 3849.24 + 17.49 

Tuesday 3863.04+ 13*0 

Wednesday 3875.18 + 15.14 

Thursday 3854.63 - 23.55 

Friday 


B ritish Gas' 2m share- 
holders have been 
“amused and 
bemused, but not 
rebellious” in recent years as 
they watched their company 
struggle against a rising tide erf 
regulatory pressure to abolish 
its monopoly markets in the 
UK. 

That was the view of Richard 
Giordano, British Gas chair- 
man. last Thursday as he and 
other senior executives set out 
the company's future dividend 
policy and corporate strategy 
to City analysts. 

Shareholders may also have 
been “confused," given the 
contradictory signals which 
the company has been sending 
to the market of late. 

At Thursday’s presentation, 
the first such strategy session 
in many years, Giordano said 
the regulatory fog of the last 
three years had lifted enough 
to offer a coherent view of 
business prospects to the end 

of the decade. 

The view, although not 
entirely rosy, was generally 
positive. And the management 
was confident enough to give 
an assurance that as long as 
there were no “untoward regu- 


Bottom Line 

Turning on the optimism 


Dividend cash cover co mparis on 

1993 cash dMdend cover 


latory shocks,” British Gas 
should be able to increase 
future dividends, as well as 
finance its business strategy in 
a prudent manner. 

The optimistic statement 
was in sharp contrast to two 
dividend warnings Issued ear- 
lier this year. Most analysts 
believe those expressions of 
deep pessimism had more to do 
with the company’s political 
lobbying effort than with 
underlying business condi- 
tions. 

But the uncertainty they 
engendered among sharehold- 
ers and analysts alike was one 
of the factors behind the recent 
under-performance of British 
Gas shares. 

“Shareholders can sleep 
more easily now after a dis- 
turbed summer of scary com- 
ments from the company,” said 
Simon Flowers, an analyst 
with Natwest Markets in Edin- 
burgh. 


4 



Interna tional Extractive 
SOutok British Gas 

That view is shared by other 
analysts, although there is still 
uncertainty over whether the 
“progressive” dividend policy 
announced by the company 
will result In real increases. 

Paul Spedding, of London 
brokers Kleinwort Benson, 
says the new dividend policy 



OB BG 


means that, “at worst, British 
gas shares will be equivalent 
to an index-linked gilt” 

He says the company’s deci- 
sion to shift its dividend policy 
from one based on earnings to 
a new formula linked to cash 
flow will allow it to “hold the 
dividend in real terms." 


But it is not clear how much 
scope the company will have 
for real increases. Flowers says 
his calculations suggests there 
should be some room for real 
growth in coming years. Under 
the new cash formula, last 
year’s dividend would have 
been covered 3.6 times. Nat- 
west forecasts suggest the cash 
dividend cover will be four 
times by 1996-97 well within 
the lower limit set by British 
Gas. 

Much depends on the success 
of the current restructuring 
programme, in which the com- 
pany is aiming to reduce its 
annual cost base by £600m by 
1998, largely through the elimi- 
nation of 25.000 jobs, a third of 
the workforce. 

Another big factor will be 
the pace at which earnings are 
boosted by the company’s ris- 
ing oil and gas production pro- 
file, the main engine for earn- 
ings growth to the end of the 


decade, according to company 
officials. The generally upbeat 
tone of Thursday's presenta- 
tion suggests that the company 
has also reassessed the likely 
impact of the government's 
decision to introduce full com- 
petition into the domestic gas 
market by 1998, when consum- 
ers will also be able to choose 
between different electricity 
suppliers. 

Although British Gas Is 
likely to lose a healthy slice of 
the domestic market to Its 
would-be rivals, analysts say 
there is a good chance that the 
government might agree to 
delay the phased introduction 
of competition from 1996 to 
1997. 

That would give the com- 
pany more breathing space in 
which to create a commercial- 
ly-oriented business unit able 
to compete head-to-head with 
the independents. 

Although it is bound to lose 
market shore, British. Gas will 
remain the monopoly trans- 
porter of gas to 18m house- 
holds, a function which 
accounts for about half the 
retail cost of gas. 

Robert Corine 




t 


l: 






FINANCE AND THE FAMILY 


Part-timers given 
hope over pensions 

Debbie Harrison looks at this week’s European Court ruling 


T his week, the Europ ean 
Court of Justice told 
employers how they 
should equalise pensions 
for men and women. In doing so it 
raised the hopes of thousands’of 
part-time women workers who may 
now be able to join their company 
schemes and back-date their pen- 
sion claims for up to 20 years. 

The court also made clear, how- 
ever, that women members are pow- 
erless to prevent their employers 
from ra isin g the age at which they 
can claim a full pension from 60 to 
the male pension age, 65. This 
means that women may have to 
work and pay pension contributions 
for on extra five years. 

Wednesday’s announcement by 
the court also will affect those with 
present and future pension rights in 
a scheme that is due to be wound 
up because the employer has gone 
bust. These people should now 
receive their benefits after a wait of 
up to four years (see other stories 
on this page). 

What is unequal about pensions? 
Under most scheme rules women 
could, until recently, maim a full 
pension at age-60. This meant that 
the value of a year's pensionable 


service for women was hig her than 
for men. 

What does the law say? 

The concept of equal pensions for 
men and women in equal employ- 
ment is enshrined in European 
Union law. Under the Treaty of 
Rome (1357), on which the modem 
EU is founded, employers may not 
discriminate between men and 
women in pay and benefits. 

Until 1990, though, employers 
thought pay did not include pen- 
sions. On May 17 1990. in a case 
known as Barber v GRE. the court 
ruled that pensions were part of pay 
and must be equal. A later case said 
that equal pensions could not be 
backdated pre-Barber. 


How did employers react to the 
Barber case? 

Quickly and ingeniously. To avoid 
the cost of paying men foil pensions 
from age- 60 , most employers raised 
the female pension age by five 
years. 

Isn’t this unfair? 

Many women thought so, as did 
the Equal Opportunities Commis- 
sion which backed a case brought 
by five women who worked for 
Avdel systems, a Hertfordshire 
engineering company. In Wednes- 
day’s ruling on Avdel. the court 
said employers did have the right to 
raise the female pension age. 

But, in another r uling , the COUlt 

said that the trustees of the pension 


schemes of Coloroll, a UK wallpaper 
and h o m e furnishings group that 
collapsed in 1990, must apply equal 
pensions in the absence of the 
employer. This means that men In 
the Coloroll schemes can now claim 
the higher female rate for each year 
of pensionable service in the period 
between May 1990 and file date the 
company collapsed. 

What about part-timers? 

The court said that barring part- 
timers from a company fybpmn - 
where most of these employees are 
women - would be discriminatory. 
Moreover, it ruled that this issue 
had nothing to do with the Barber 
case but was confirmed by another 
case in 1976. Therefore, women 


could back-date their claim almost 
20 years. 

Andrew Powell of legal firm Ham- 
mond Suddard, which specialises in 
pensions, suggests this action plan 
for scheme members: 

■ Check if the majority of part-tim- 
ers excluded from the scheme are 
women. 

■ Work in a group rather than as 
individuals and, where possible, ask 
a trade union to co-ordinate any 
claim - which might also apply to 
women who have left employment 
or the dependants of any who died 
while in part-time employment. 

■ Check the cost involved in back- 
dating a cfeim. The court said that 
employees as well as employers 
must make back payments - can 
you afford this? 

■ Are the benefits worth it? Most 
schemes do not pay pension for the 
first tier of earnings - typically, 
£3,000 to £4*500 but sometimes more. 

■ Ask the pensions manager and/or 
trustees for the objective reasons on 
which they rely for their exclusion 
policy. 

■ If the reasons are unsatisfactory, 
seek help - you could be entitled to 
legal aid {see “Who can help” in 
column seven). 



T ony Be van would have 
been happier If he had 
never heard of Coloroll. 
But his employer, Mills 
Associates, a Monmouth-based 
computer data processor, decided to 
shut down its pension scheme in 
June 1990 - just one month after 
the historic Barber judgment - and 
he was trapped. 

With more than 25 years’ service 
in the company scheme. Be van was 
alarmed to discover that his future 
pension was entangled in a legal 
process that extended from 
Monmouth to Luxembourg, h ome of 
the European Court of Justice. 

Only now, mare than four years 
later, will Bevan find out just how 
much his pension benefits are 
worth - and be able take control of 
the money to invest in a pension 
plan of his choice. 

“The worst part has been the 
endless delays and not knowing 
who to go to for help,” he says. “We 
have been passed from pillar to post 
and. finally, our concern over the 
fund value led us to appoint a firm 
of consulting actuaries to 
investigate on our behalf." 

In Bevan’s case, the delays were 
nothing to do with his employer 
and everything to do with a 
tortuous pensions system. Late in 
the 1980s. and despite its generous 
benefits, the final salary scheme at 
Mills' Associates was attracting few 
new members because of the 
massive publicity promoting ' ; 


scheme, the company decided to 
close it and advised members to 
take out personal pensions. 

Unlike many employers in t his 
position, however. Malls Associates 
continued to pay substantial 
contributions into employees’ 
individual plans 

When the scheme was closed it 
had 70 members, excluding' 
pensioners. Of these, only 25 were 
still employed by Mills Associates; 
the rest had changed jobs and left 
their p ansi mi h tnwfifs behind 

The company scheme was run by 
Legal & General, which advised 
members to sf* tight until the 
outcome of the Coloroll case was 
known. If the court decision on 
Wednesday had led to extra costs, 
the scheme would have been 
obliged to adjust members’ benefits. 

In the interim period, several 
members marked retirement age 
and, naturally, wanted to draw 
their pensions. Legal & General 
agreed to pay these, but at a 
reduced rate. 

Bevan, meanwhile, tried to 
accelerate the wind-up. As he 
explains; “The Occupational 
P ensions Board didn’t clear the 
scheme until 1992, and then the 
Department of Social Security took 
ages to complete its examination 
due to what appears to be a 
permanent backlog. We tried the 
pensions ombudsman and the " 


Occupational Pensions Advisory 
Service, but they said they could do 
nothing to speed things up. We then 
discovered that the average time it 
takes to wind up a scheme is four to 
five years - and this has nothing to 
do with the Coloroll case.” 

For Bevan and his colleagues, the 
long wait is over at last. Legal & 
General confirmed that the effect of 


the court's derision is negligible on 
the Mills Associates scheme and 
that the funds are ready to 
distribute. Once the actuaries finish 
their investigation, members wQl 
receive their benefits - including 
back payments to pensioners who 
had received a reduced rate since 
1990. 

Footnote: Some schemes waiting to 


wind up following the Coloroll 
ruling will have good news for 
members. Where a scheme has a 
surplus of binds, and once the extra 
costs imposed by Coloroll are met, 
it can use the balance to increase 
members’ benefits. In the case of 
the British Shipbuilders’ pension 
scheme, nm by Legal & General, 
the surplus is £5Qm. 


Caught in the log-jam 

personal pension plans. When it 
became uneconomic to maintain the 


Protecting your rights 
when a scheme closes 


T his week's European Court 
decision on equal pensions 
wQl trigger “a tidal wave 
of scheme wind-ups", 
according to Richard Whitelam, a 
partner with consulting actuary 
Bacon & Woodrow. Most of these 
schemes will belong to companies 
that became insolvent after May 
1990 - the date of the Barber case - 
and have been waiting for this lat- 
est judgment to find out how to 
share the funds among members. 

The judgment means that if the 
scheme rules allowed women to 
claim a lull pension from a lower 
age than males, then the men 
should be able to boost their bene- 
fits by claiming the same rights for 

the period between May 1990 and 
the date of insolvency - up to four 
years, in some cases. 

Whitelam warns, however: 
"Problems will arise where there is 
not enough money in the pension 
fond to cover its liabilities. In these 
cases, the men’s new rights must 
he taken into account before all the 
pensions are scaled down." 

Equal pension rights apart, wind- 
ing up a pension scheme is a 
lengthy and complex procedure and 
It is important to know your rights. 

Whatever the circumstances, 
your pension benefits should be 
safe because the law states that a 
pension fund must be held in a 
trust that is separate legally from 
the company’s own funds. 

On wind-up, a well-run scheme 
should have adequate funds to 
cover present and future pensions. 
Unfortunately, the wind-up can 
reveal a shortfall, as happened at 
ship-builder Swan Hunter where 
the actuaries under-estimated the 
cost of buying out the scheme’s lia- 
bilities and had to reduce the bene- 
fits of members who had not yet 
retired by up to 40 per cent 
Even where there is no reason to 
suspect foul play, there can be end- 
less delays that cause anxiety dur- 
ing wind-up. as Tony Bevan discov- 
ered (see “Caught in the log-jam"). 

□ □ □ 

It is important to keep in touch 
with the scheme’s trustees; they 
are there to look after your rights 
and tell yon about any changes 
that are taking place. But remem- 
ber that you cannot always rely on 
trustees if, for example, they 
include members of the work force 
who were made redundant before a 
take-over or privatisation. A trade 
union contact can prove helpful in 
these circumstances. 

The way a scheme is wound up 
depends on its trust deed and roles 
- the legal foundation on which 


schemes are based. The trustees 
should consult a legal adviser and. 
in the case of insolvency, appoint 
an Independent trustee - a profes- 
sional whose job is to protect mem- 
bers* benefits. 

It is worth asking this trustee 
how long it will take to wind up 
the scheme, since this can drag on 
for up to five years depending on 
the complexity of the case, how the 
fund is invested, and how many 
government departments are 
involved. 

This can lead to a period of 
delays during which you might uot 
be able to transfer your benefits to 
a new scheme or, in the case of 
retired members, be paid a full pen- 
sion. If, when the process is com- 
plete, there is a fund shortfall, your 
benefits may be reduced. 

If, on the other hand, there is a 
surplus, you might receive a better 
pension than expected. Whatever 
the circumstances you should stay 
put until your position is clear. 

□ □ □ 

On wind-up. the Inland Revenue 
insists that your pension money is 
invested in another scheme or plan 
until retirement. In most cases, the 
trustees will arrange a "bulk pur- 
chase ann uity" with a life office; 
this guarantees the same or similar 
benefits to members as those 
offered by the original scheme. 

You could also have the option of 
transferring your former company 
benefits into a new company 
scheme or a personal pension plan. 
Expert help is essential here to 
make sure you are getting good 
value for money. 

Bear in mind that most company 
schemes provide lump sum death 
insurance and pensions for depen- 
dants. Check that your new 
arrangement covers these family 
protection benefits. 

■ Who can help 

The Occupational Pensions Advi- 
sory Service (Opas) publishes a 
technical guide. Winding Up of 
Pension Schemes on Company 
Insolvency, which is available from 
Opas at II Belgrave Road, London 
SW1V IRB (tel: 071-233 8080). 

The guide is written for trustees 
but will be of interest -to scheme 
members. If you want Opas to 
investigate a specific case, contact 
the organisation via your local Citi- 
zens Advice Bureau. 

Help from Opas is free but if you 
are prepared to pay for expert legal 
aid, contact the Association of Pen- 
sions Lawyers, c/o Paul Stannard. 
10 Snow mil, London EC LA 2AL. 

D.H. 


"d kes 


LOWER RISK INVESTMENT 



TOPPERFORMING 
MANAGED CURRENCY 
FUND OVER 
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A WINNING FUND 





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1 rekmatd » US Dotes tan im-ISK 


LONG-TERM MARKET OUTPEBFORMANCE 


FOR THE CAUTIOUS INVESTOR. 


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ANNOUNCEMENT 


NO INITIAL CHARGE 
NO WITHDRAWAL FEE 

5 


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through the M&G PEP will have no initial charge 
and will carry no withdrawal fee after 5 years. 

Register now for details by returning the coupon 

below or by telephoning (0245) 390 OOO 

(24 hour service) 


To: The M&G Group, PO Box 111, Chelmsford CM1 1FR. 

Please send me details of your new PEP offer to be launched in October 
and how to transfer any non M&G PEP. 

NO SALESMAN WILL CALL. 

You should contact your independent financial adviser (if you have one) before investing. 


INITIALS 


SURNAME 


ADDRESS 


POSTCODE 


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We never make your name and address available to unconnected organisations. We will 
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The price of units end foe income from them can go down as well as up. 

Issued by MSG Financial Services Limited (Regulated by The Personal investment Authority). 
The M&G Managed Growth Fund Is managed by M&G Securities Limited. (Member of IMRO. 
Regulated by Trie Personal Investment Authority). 


THE NEW M&G MANAGED GROWTH FUND 




uig data lor Hie monitoring 01 targets, ana die iur mu iiuiiuiuns ui |mi.mbu«. 





fV WEEKEND FT 


P 




FINANCIAL TIMES WEEKEND OCTOBER 1/OCTOBER 2 1994 

FINANCE AND THE FAMILY 


Gold regains some of its glitter 


G old bulls must be 
cursing Britain’s 
Chancellor of the 
Exchequer, Ken- 
neth Clarke. Last weekend, he 
suggested that the Interna- 
tional Monetary Fund should 
sell some of its gold, which 
earns no interest, and use the 
proceeds to help heavily-in- 
debted poor countries. 

Clarke's unhelpful remarks 
came at a time when gold had 
been making a determined 
move towards $400 a troy 
ounce, a level U reached briefly 
just over a year ago, and when 
the market was getting over its 
fear that big sales from central 
bank hoards would crush the 
gold price again. 

The latest rally started in 
August when a number oF US 
financial organisations, famil- 
iar faces in the market, started 
to buy gold in an aggressive - 
but carefully controlled - man- 
ner obviously intended to drive 


the price towards the $400 
level 

if anyone asked about their 
renewed interest in gold, the 
reasons also sounded very 
familiar they said US Interest 
rates were going up and wor- 
ries about global inflation were 
spreading. 

Various financial instru- 
ments were sold to investors 
on the strength of the rally and 
a great deal of money will be 
made If the gold price goes 
above $400 and stays there for 
any reasonable length of time. 
“There is a huge, collective 
wish for the price to go 
through $400,” says Andy 
Smith, analyst at Union Bank 
of Switzerland. 

Smith says the gold market 


has changed dramatically from 
the heady days of the late 1970s 
and early 1980s when investors 
in the rich western countries 
were buying physical gold. 
Today, most physical gold-buy- 
ing comes from the Middle 
Bast and the Far East, markets 
that are much more sensitive 
to price changes. 

Nor. says Smith, is the mar- 
ket mood the same as In the 
early months of last year when 
speculative activity was 
backed by a surge in physical 
gold-buying because the price 
had dropped to S330 and the 
metal was perceived to be 
cheap. The best that can be 
said about demand for physical 
gold at present is that it 
remains steady. 


The Gold Fields Minerals 
Services consultancy organisa- 
tion reported in its latest mar 
ket update that, in contrast to 
the strong start in 1993, esti- 
mates for the first half of this 
year implied that gold fabrica- 


tors (mainly jewellery makers) 
bad bought 12 per cent less 
metal, or 1,400 tonnes. This is 
slightly misleading, however, 
because of exceptionally heavy 
demand in the first quarter of 
1993. with China at the fore- 
front. 


GFMS, which is backed 
finan cially by some big gold 
producers, summed up by say- 
ing; “The prospects for gold 
look very delicately balanced, 
and a goad argument can be 
made for suggesting that the 


price will break out of the 
recent trading range, either on 
the upside or the downside, 
depending on the interplay 
between wealth creation, infla- 
tion. interest rates and. finally, 
perceptions about gold's funda- 
mentals." 


Ted Arnold, metals specialist 
at the Merrill Lynch financial 
services group, says he is scep- 
tical about a "break out on the 
upside" being sustainable for 
long. And he is puzzled by sug- 
gestions that inflation will 
push the gold price ever 
upwards. 

“History does not show that 
happening, nor does an objec- 
tive reacting of likely trends in 
real interest rates in coming 
months," says Arnold. 

"For gold to perform really 
well in an inflationary environ- 
ment, one would have to have 
negative rates of return on 
money and a desire on the part 
of investors to physically buy 
and hold gold. 

“I can't see a return to this 


situation in the foreseeable 
future." 

What the gold bulls seem to 
overlook, adds Arnold, is that 
“major structural changes In 
both supply and demand have 
reduced the volatility of the 
gold market. Both supply and 
demand now respond much 
quicker to a given price rise 
than in the past" 

One accessible route into 
gold for private investors is 
through a unit or investment 
trust. “Gold has been a very 
unfashionable investment," 
says Julian Baring, fund man- 
ager of Mercury Gold and Gen- 
eral. the top-performing com- 
modity unit trust in the five, 
three and two years to August 
1 (HSW. offer-to-bid; net 


Kenneth Gooding examines why the 
price has moved back towards $400 


Gold 

Spar fine ounce 
440 

420 

400 

380 

3 60 

340 


Sap 89 SO 91 82 93 94 

Source: FT GrapNts 

income re-invested). "But if 
you compare the performance 
of gold against US shares, It 
would not take much of a fall 
in the Dow Jones index or a 
rise in the gold price to break a 
13-year bear trend.” 



Directors’ transactions 


The week ahead 


Here is the news . . . 


Biggest sale of the week came 
at Scottish newsagent and 
retailer John Mercies where 
the chairman, also John Men- 
zies, sold 420,000 shares at 580p 

DIRECTORS’ SHARE TRANSACTIONS IN THEIR 
OWN COMPANIES (LISTED & USM) 

Company 

Sector 

Shares 

Value 

NO Of 
directors 

and Charles Ramsey, a non-ex- 
ecutive director, disposed of 

SALES 


100,000 

3,916 

5.000 

90,000 

18,092 

11.750 

1 

1 


..PP&P 

sale leaves both with very 
large chunks of stock - Men- 


Mdia 

1 

EFT 

OthF 

300.000 

180/100 

1 


Eng 

100.000 

91,000 

102,948 

253,000 

1 * 

des with more than 5m shares 


—Mdla 

44,760 

1 

and Ramsey more than 2Jan. 


..Dfat 

115.000 

506,400 

3* 

□ Mosaic Investments is 


_. RetG 

2.937.120 

2 

responsible for licencing many 
of the cartoon characters fea- 
tured on children's lunch 
boxes, toys and clothes. Ken 
Robinson, the director in 
charge of packaging consum- 


fl«H 

16,000 

36,000 

25,800 

1 



30,000 

1 


„..Watr 

2,000 

11,480 

1 


Eng 

45.457 

198.193 

1 * 


RetF 

12,522 

30,929 

1 


RetF 

615,420 

1 ,520,086 
462,510 
16,020 

2* 



81 ,000 
6,000 

2 

ables, has acquired 100,000 

Wrir . . 


1 

shares at 26p. which increases 
his holding by about 20 per 




PURCHASES 


5,000 

19,500 

1 

□ International Business Com- 
munications provides informs- 

Aberfbrth Spot Inc. 

..._lnvT 

80.000 

142,400 

1 

BET 

BTR find. ADRs) 

— SSer 
DM 

12,000 

5,100 

100.000 

12,520 

15,857 

32.000 

16.000 
42.000 

2 

2 

tion services to professional 


...„HMi 

1 

newsletters and magazines. 



700.000 

100.000 

2 

Over the past 12 months, its 
share price has risen by more 
than 57 per cent compared 

Cook (DC) _.. 

. Dfcst 

1 


.Hfth 

715,000 

214,648 

39.500 

5 


_..mth 

25,000 

1 


RetG 

10,000 

15,000 

100.000 

18,550 

16,500 
21,600 
26,000 
55 612 

1 

Groot is a non-executive direc- 
tor and his sale represents a 



2 


-PP&P 

1 

2 

urn 

SSer 

considerable chunk of his hold- 



£600 

14846 

1 

ing - although this would not 


-FdMa 

95,000 

102.750 

5 f 

appear to be anything more 
than a timely spot of profit-tak- 



Vakja expressed In COOOs. This Set contains on transactions. Including the exwcfce of 
options n if 100% subsequent* said, with a value aver £10.000. Information reteased by 


upuca i j ii luun awmiuaiuy aw, wpi u vonh 

mg. the Stock Exchange 19-23 September 1994. 

Vivien MacDonald, ^ nwetua Ltd. th« inads Track. 


The Inside Track 


MONDAY: First-half pre-tax 
profits from Bilton. the prop- 
erty investment, construction 
and house-building group, are 
expected to come in at around 
£9m, broadly the the same as 
last year. 

TUESDAY: Ibstock, the build- 
ing materials group, is expec- 
ted to report a return to the 
black for the first half of its 
year. Profits between £2m and 
22.75m are forecast. This result 
will compare with losses of 
£17.lm at the interim stage last 
time. The dividend is forecast 
to be maintained at 0.5p. 
TUESDAY: Final results from 
Raine. the construction group, 
are likely to produce pre-tax 
profits in a range between 
£13m and £13.5m. compered 
with £10.8 last year. A main- 
tained dividend of 3p is fore- 
cast 

WEDNESDAY: Sir Matthew 
Goodwin, chairman of Hewden 
Stuart, can be relied on to give 
an insight into the state of the 
construction industry when he 
reports the group's interim 
results. The Glasgow-based 
company is the UK's biggest 
independent plant hire group 
and is involved in every sector, 
from housebuilding to roads 
and industrial projects. 

Analysts expect a sharp 
increase in pre-tax profits for 
the six months to July 31, from 
£9.1m to about £13.5m. Interest 
will focus on the trading out- 
look and what returns have 
been made from the Efireplant 


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7 JO 

740 

5J3 

523 

38 April 

150408 

90 deys retiwtetd*. N««ti* Saw eptta dio wttbUe 


Tcsn 

4X8 

638 

- 

• 

17m 

1 

Ns tranter restricted! cr eknge. leyeRy boras 9,% utn ye* 5 


EaUJUMM 

SIS 

545 

546 

346 

lire 

0*400 

Karetlca naptcafty 

Lftds Ftreuorel <1552 081111 

Been Grid 

7 JO 

740 

525 

625 

A nta 

188,800 

befodare fotaest bda>S «J 020% G pj. proeided pa ■ttdroats 


taeCdd 

4J1 

681 

5J1 

611 

MU* 

1004N 

Nda date preelaos U aadtt pafod. tiered rates Mai 00480. 


UtddteU 

SJI 

S4I 

3X3 

349 

Anal 

25400 

tesUrt access re pent*, tiered Merest rate bn 05 


SdUtetd 

&J0 

600 

451 

L50 

Acred 

50400 

tetart access, at peod* re ■* et 00400. Otkereta 90 days 


SoUMd 

SJ4 

544 

4JB 

42* 

Urea* 

3*400 

aallea re 90 days foes t< tderast Ttatd (ctanst rate trad DOB. 

ltarata(S2S2M28?l) 

fcUewM 

4J5 

MS 

614 

521 

Acred* 

1004 OO 

69 (fop retire 


Ton 

4.75 

6.75 

- 

- 

Asred* 

HUM 

30 itays reflet 

Nrearile (891 232 M7il 

NnaPks Sptdd 


545 

441 

• 

Aaedy 


tetet access 


urn Star (taut VH] 


6J5 

546 


tan* 

540 B 

Nd aOdb dtecy 12nO tart Aeraafta rtttdmdt «tea<t fo 9* 









dap retin for taint access of* 90 fes foss at fotaesb 


Petfood BWd 

- 

69 

666 

■ 

Aiacaly 

LOW 

tetret access nia 98 dap foa of Merest 

tertian flock (091 OS 7MU 

Pnuu 

7.25 

725 

644 

644 

Acred 

1004004- 

Pistdarmnrt. 



7-15 

7J5 

34* 

526 

Asred 

58400* 

Keottty retire. 



4.95 

695 

521 

521 

Aread 

254884 

araBate 



MS 

675 

546 

6*6 

Aureal 

104*84 

TrtBSOO 303400 



4J5 

635 

4.76 

4JS 

Acred) 

2480+ 

br rfrtft 

Portals Ond UwhCKSl) S2Z747I8 

MdttesA/C 

645 

665 

- 

- 

Wy 

20488 

Mp. Mdte 1.800486 90 dap reflceerpete*. Note* aptte. 


Info* UN Aoaed 

620 

620 

- 

- 

Wy 

20408 

■a fofoflre 1488480. tetret acctrc Mretidy opBre. 


Odd Bred 

625 

125 

- 

- 

Wy 

18488 

Access & elte drtals. Hn 508408. Urea* retire. 

Afodpd|(K22 344un 

Tessa 

4.75 

675 

- 

- 

wy 

25 

Ts ana** "tee eapHal raaafos ta 5 yen 

ScuteneBb (0*90 5TO7I) 

Keepsaft If Post 

650 

65» 

448 

441 

AeaMy 

15 

ReyNar State Nrettty teestawt 05-158, fortret Acta 

Sfdptu (175* 780)11) 

3 jr Find Rats Bred ted bin 









US 

625 

614 

619 

Tr* 

2880 

Ftad ret) 30 Septenta 1997. 


H*k Start 

610 

618 

451 

448 

W| 

24* 

lastaat access, operated thrregh beaocta ted 2607.94. 


nreiSmitlre 

650 

638 

638 

638 

Tr* 

29 

tads IBs Bile takdei 2% Brere p^. hr re vBtarreda. 

WMtofch I08M 400 WO 

CnredAccM* 

SJO 

MB 

343 

343 

Tr* 

504*0 

Icstact Access. Rries 



5.00 

500 

3.75 

175 

Wy 

25400 

VriUte. 



ISO 

44B 

3J8 

328 

Tr* 

U480 




3JB 

M0 

2X3 

263 

Tr* 

500 

s>6S%APB.Sidd<ctIa 



US 

US 

046 

844 

** 

1 

state red mi. ape 16 . 

YotlaMn (0600 37BKM) 

Tessa Preaner 

440 

660 


- 

Wy 

UO 

10 dap Bated 0 ! transfer 


1 st Class Access 

650 

650 

448 

448 

Wy 

1004*0 

0000 ^fanfo apec art 


1st Ctai Acres 

625 

62S 

669 

449 

wy 

50400 

tetet redd mess ptas 


mom Acres* 

6 % 

545 

446 

4.46 

Wy 

25400 

lick card lor 2lte access ris 


warn Acres 

MO 

540 

03 

425 

wy 

18408 

6 TJL 


1st Ons Access 

SJ5 

655 

4.14 

4J6 

Trfy 

2 .1*1 



lit Ohs Accra 

LO 

LO 

LQ9 

141 

Wy 

ZS 



*FdrUfepiaestelaal fractal- MMiftalcntEtn.C«R- And jMdrfteUaestaapcredtd. U1M4 | 


TELEPHONE 

0 8 0 0 3 ( 

: FREE ON 

) 3 3 

3 0 

^our ^ucuxtni^ 
oAcericuniu. 



Ttliplmne (am - 24 Imn ■ day - MS day* * jtw. tNflTMtf ACCESS, 90 PAY, H1CA, MONTHLY INCOME, TEMI, TESSA. JUut b j dfcitfM eltlM Brtrtal B Weft DUMn Society 


Hew den- Stuart 

Share price relative to the 
FT-SE-A All-Share Index 
180 



1993 1994 

Source; FT Graphite 


assets of BET - 24,000 items of 
plant and 29 freehold proper- 
ties which Hewden Stuart 
snapped up for a mere £llm 
last year. 

WEDNESDAY: The stock mar- 
ket expects Bank of Scotland 
to show a strong rise in pretax 
profits when it reports its 
interim results. Analysts 1 fore- 
casts are clustered closely 
around the £200m mark, up 
from £117.6m a year earlier. 
Earnings per share are expec- 
ted to be about lOp. 

The market reckons on an 
interim dividend or 2.1p, up 
from l£7p a year ago but still 
giving one of the lowest divi- 
dend yields in the banking sec- 
tor. 

THURSDAY: Etam, the fashion 
retailer, is expected to deliver 
an increase of more than 50 per 
cent in profits to £3.7m for the 
first half of its year. The com- 
pany’s strategy of defending 
margins in the face of heavy 
discounting by rival fashion 
retailers is thought to be pay- 
ing off 

Shares in the group, which is 
weighted heavily towards the 
second half, have risen from 
the year’s low of 2l7p in April 
to well over 300p. 


The government's decision to sell 
its remaining stakes in the two 
English power generators domi- 
nated the new issue market this 
week. 

Developments have also been 
announced at a couple of plac- 
ings: Gaines Workshop, a bobby 
games manufacturing concern, 
and Fllttonlc, a telecommunica- 
tion components supplier. 

Ashbourne Holdings, a nurs- 
ing homes business, said it would 
be getting a quote and alloca- 
tions were announced for the 
ED&F Man offer (see page 8. 
main paper.) 

The government Is aiming to 
use the £4bn sale of its remaining 
40 per cent stakes in National 
Power and PowerGen next Feb- 
ruary to widen share ownership 
further. Private investors will be 
offered two-fifths of the available 
shares at discount prices and the 
proportion will rise if demand 
requires it 

To qualify for the discounts 
investors must apply through the 
"share shops" of banks, building 
societies, stockbrokers and other 
financial intermediaries, rather 
than through forma hi newspa- 
per advertisements. 

The government expects to 
begin marketing the sale in Jan- 
uary which will be the first 
opportunity for people to regis- 
ter. Payments will be In three 
instalments, each in a different 
tax year. 

The prices will be determined 
foQowing bids from institutional 
investors in two separate, open- 
priced international tenders. The 
International offer will include a 
retail tender to enable individu- 
als to bid for shares in either or 
both companies on similar terras 
to institutions. 

Small investors in the UK will 
be able to buy only a package of 
shares in both companies, with a 
p re-determined ratio, possibly 
three National Power to two 
PowerGen. Discounts to the pub- 
lic will be reflected in a lower 
first Instalment 

Existing shareholders will 
need to register with share shops 
to be eligible for Incentives and 
preferences in allocation over 
other applicants. 

Shares in Games Workshop 
have been priced at I15p. which 
will give the games’ manufac- 


RESULTS DUE 


Dividend (p T 


Company 

Sector 

AlWCflUll 

dua 

Last 

htL 

year 

FM 

TMs year 

fort. 

FINAL DIVIDENDS 






B2W Endowment Fund — 

inTr 

Tuesday 

- 

. 

- 

Batty Wehrrftar Inti 

Eng 

Thursday 

2.4 

42 

04 

Br BuMng A Eng App — 

BAC 

Tuesday 

22 

52 

22 

Ex-Lands Pic 

LeH 

Thureoay 

- 

025 

- 

Fmefist Group 

0« 

Wednasday 

• 

- 

- 

OSSJord 

BSC 

Thixsdny 

CLS 

02 

02 

Gates Fran* c ) Group — 

— —D« 

Monday 

225 

- 

2.75 

Groupa Chez Geared 

LeH 

Monday 


- 

- 

Prestwfcfc Wdgs > — 

ESEE 

Wednasdsy 

as 

• 

- 

RSna ... 

B&C 

Tuesday 

2X1 

12 

12 

Rossmoeit 

BdM 

Monday 

- 

- 

• 

Wettenpoon (JD) 

Brow 

Thursday 

12 

32 

22 

IWTBJUM DWIDEMW 






ArcreXsn hiti 

B&C 

Wednesday 

- 

. 


Aoda Proper* Udgs 

— —Prop 

Tuesday 

07 

12 


Austin Reed Group 

ReGn 

Wednesday 

2j0 

32 


Badgertere Group — _____ 

Tran 

Monday 

- 

- 


Bank at Scotland 

Bar* 

Wednesday 

1-87 

3.18 


BonxSn Hktga 

OtSv 

Thursday 

- 

12 


Bettoevearo 

ReGn 

Monday 

CUE 

1-96 


Bilton Prop 

Monday 

547 

1321 


fTauctn Mlotog 

Exit 

Monday 

- 

028 


Boosey a Hawtes 

LeH 

Tuesday 

OO 

19.0 


Cl Group 

Eng 

Monday 

04 

0.1 


Chepstow Racecourses _. 

LeH 

Friday 

ID 

52 


CHrooeteoca Group 

Phrro 

Monday 

- 



Cohen (A) a Co — 

Eng 

Friday 

- 

- 


Dem3itraji InM 

E&EE 

Monday 

05 

1.0 


DoeDex 

Own 

Monday 

14 

xo 


Dolphin Packaging 

PPSP 

Thtcsday 

1.7 

2.8 


Elam _ 

ReGi 

TtXDSday 

1.75 

5.75 


Ftah . 

Med 

Friday 

- 

- 


Geest. 

ReFd 

Friday 

3.7 

4.4 


Grampten Mtdgg 

Phnn 

Wednesday 

1.7 

68 


(foand Central Jnv Hklga __ 

FdMa 

Monday 

- 

125 


Helene 

Text 

THrsdoy 

066 

120 


Henderson Highland 

InTr 

Thursday 

1.4 

1.4 


Harriog Baker Harris — 

Prop 

Monday 

05 

12 


Hewden Stuart ... 

B&C 

Wednesday 

075 

2.15 


Hungarian InvCo 

InCo 

Wednesday 

- 

re 


Ibstock __ 

Bcftta 

Tuesday 

05 

02 


Johns ton Group 

..Bcftte 

Tuesday 

ID 

12 


Lament KkSga 

Taxi 

Tuesday 

35 

92 


London a Associated Inv _ 

InTR 

Monday 

0.Q5 

029 


Horgan GronlaB Lai Am _ 

InTr 

Wednesday 

re 

. 


Padang Senang HMgs 

— ... QtSv 

Thmday 

- 

12 


Ptantatfon & Gen IT 

Wr 

Thursday 

075 

075 


Perth Group 

-OtSv 

Monday 

- 



OS HoLfngs ._ 

ReGn 

Monday 

128 

323 


Radamec Group 

— _ — E&EE 

tiwsoay 

05 

12 


Sherwood Group 

Text 

Thursday 

1.0 

18 


Sfentnight Hktga 

HsieG 

Tuesday 

2.75 

525 


Singapore Para Rubber 

OsSv 

Thursday 

m 

12 


SHngsbyJHC) 

Eng 

Friday 

60 

92 


Taiwan tnv Tet 

InTr 

Thursday 

. 



TratBcmaster 

Tran 

Wednesday 


. 


va 

LeH 

Tuesday 

- 

- 


Walker Greenbsnk . 

KssG 


12 



Watts Blake Beam a Co 

Exd 

Tuesday 

OS 

82 



■OhklmOs are shown net penes per shore and are adjusted for any tnteventag snip Isa*. 
Reports and accounts are not nomvtfy avaJUtte untt about 6 after the txxrd meetnq lo 
approve prdimkiary reams, ff 1st quart**. + &*J quart**. * 3rd Oust** 


TAKE-OVER BIDS AND MERGERS 


riw tV 


Price 



Company 






bid Bor 


Ortee- 

Wet 

Cma~ 

EBdder 


Price* »> panee urriare omenarte wJcata 


Ajtkcn Hume 

55‘ 

51 

51 

29.60 


Attwoods 

109 

115 

109 

364.00 


Casdo Comma 

30O- 

360 

340 

24.50 

ACE Hohflnga 

Dale Sectrle 

70S*" 

72 

60 

16.00 


Elswlch 

18V. 

17W 

IS 

37.70 



16D- 

160 

92 

3720 



360- 

364 

169 

247.00 


Ptantsbroek 

175' 

173 

165 

193.00 


Bdroles I 

250- 

253 

193 

96.10 


Towles J 

275- 

268 

243 

422 


Trans World J 

181 

179 

173 

7020 


‘At cm tea. Sfcr careri nor eceur Brin t UcznsDM 

-taceu os 

7 J0 om (mm XV4W KSna M ore 


New issues 


turer a market capitalisation of 
£36m. Around £l2m Is being 
raised through the float, which is 
being undertaken through a plac- 
ing sponsored by Samuel Mont- 
agu. 

Filtronic, which supplies 
micro-components to the mobile 
telecommunications industry. Is 
also coming to the market via a 


esm placing. The prospectus Js 
due to bo issued on October 18, 
with dealing commencing around 
a week later. 

Ashbourne Holdings, one of 
Britain's largest nursing homo 
businesses, has announced plans 
for a stock market flotation valu- 
ing the company at up to £9Gm. 


PRELIMINARY RESULTS 


Company 

Sector 

to 

PreJn 

proflt 

ftooq 

Eanflnga* 
par aharo 

Op) 

OMdends* 
par share 

U 

ActoMt Graft 

Dtrtn 

Jun 

11.400 

(9.420) 

10.4 

(102) 

72 

Pi) 

AJfed tehave 

LeH 

Jun 

30,100 LV 

R940 •) 

- 

(5J224*j 

- 

H 

ABM London 

ftop 

Junt 

10200 

(8200) 

nao 

(852) 

328 

P23) 

Bering Emerging Bur 

foTr 

44 

a 79 

(088) 

032 

H 

02 

H 

Bradcanbridge 

n7a 

Mar 

8290 L 

0270 U 

- 

f) 

- 

H 

Bun Stewart DM 

SWSC 

JiA 

4,190 

(8.120) 

52 

P-53) 

52 

(52) 

Clow Arm 

hfoSk 

Si 

33280 

(17220) 

22.1 

(13.71 

52 

(52) 

Catwriuol* Haspitab 

Hfl) 

Jun 

7.700 

(5,100) 

172 

042) 

7.9 

(82) 

Cororeefl Patter 

HseG 

Jti 

31150 

(4210) 

42 

(72) 

5.7 

M 

DCS Ora? 

SpSr 

Jt4 

8280 

I655Q 

432 

(226) 

02 

H 

Dating KJnderstay 

Med 

Jun 

9240 

P.650) 

84 

(92) 

33 

M 

European Letan 

LeH 

Jun 

542 L 

(221) 

- 

(121) 

- 

H 

Eunpean BwalerCo 

Inti- 

Juttf 

135l3 

(116l7) 

0.78 

(1-79) 

058 

(125) 

Rogmore Estates 

Prop 

Jun 

16,450 

(10260) 

292 

tn-iJ 

172 

(152) 

Goorflmd Group 

Mad 

May 

40 

(17200 q 

as 

H 

026 

(0.05) 

Goodwin 

Eng 

Apr 

383 

(206) 

38 

(18) 

0285 (0.655) 

Qo Ahead Group 

Tran 

Ji4 

2960 

(315) 

22 

(12) 

- 

H 

Kabtwd (Junes) 

Btftta 

Jtat 

9200 

P.70H 

222 

B0 35 

72 

(62) 

bitareurapa 

Mad 

Jun 

405 

(M60) 

394 

(1321) 

72 

PA 

Mar 

nfa 

Jun 

6200 

(5200) 1442 

iisaq 


H 

Lyles 

Taxi 

Jun 

568 

(99 q 1037 

(133) 

32 

M 

MR Data Manogamarit 

SpSv 

Jut 

8250 

P.780I 

80 

(10.fi) 

523 

(5.19) 

Molyneux Estates 

Rop 

Jut 

I.II0 

R5WO 

261 

H 

2.0 

PA 

IBucMow (AAJ) Grorgi 

Rap 

Jut 

10.100 

(0270) 

723 

(B.4Q 0288 (8.103) 

MyWndaTown 

LeH 

J ii¥ 

1230 

(1200) 

023 

H 

- 

H 

Norlham Lebts* 

LeH 

Aug 

2240 

(883) 

7.7 

(23) 

22 

H 

Pwamount 

Brew 

Mt* 

SZ7 

(527) 

02 

(043) 

02 

P.W) 

Fodfln 

Brflvta 

Ml* 

2220 

(1230) 1872 

{KXX2) 

322 

paq 

Quayls Mum Mdga 

Ofn 

Jun 

670 

(5«H 11-78 

(071) 

92 

(32) 

Redraw Qmup 

etc 

Jun 

19200 

(13200) 

82 

(5-D 

12 

H 

Regent bare 

Raw 

Jl4 

2210 

(1240) 

13.1 

(10^ 

5.4 

(325) 

SWP Group 

BdMa 

Jut 

222 

(170) 

02 

(02) 

02 

P23 

Thorpe (HV) 

E8EE 

Jut 

2210 

(1.660) 

117 

(oe 

32 

(227J 


INTERM STATEMENTS 


Compar* 

Sector 

HMI [rear 
to 

RMK profit 

team 

forterim 
cMdurdfo* 
per share (p) 

Abbott Maad Vktan 

Med 

An 

2280 

(1200) 

42 


Ataton 

ReGn 

jm 

2710 L 

P28oq 

- 

H 

Alpha Airports 

LeH 

Si 

11200 

(10200 

1.6 

f) 

Autornotive Products 

n fi 

An 

4,700 L 

(5J0<» 

■ 

H 

BaMo 

CXFn 

An 

3250 

(I28C? 

12 


Beazsr Homes 

BSC 

Jun 

33200 

(3720C| 

12 

(•) 

BBam (J) 

Big 

Jtn 

34 

m 

22 

PJ) 

BkxMeys 

BdMa 

Jun 

122 

(261) 

0.4 

(02) 

Breedon 

BdMa 

Al 

1200 

POO) 

1.75 

(1.75) 

Brant Wlaftar 

LeH 

Jtn 


(83200 U 

- 

H 

Brighbtnm Props 

Prop 

An* 

106 

H 

12 

H 

Britton Qtap 

PBP 

An 

3.750 

(520) 

12 

P-6) 


Prop 

An 

16.400 

(1320C| 

295 

fL62S) 


Prop 

An 

513 

P05L) 

0.1 

H 


Tran 

An 

1200 

PJJOQ) 

0.75 

(075) 


Dist 

Jun 

350 

(183) 

0.13 

(0-11) 

Oemtopment Secs 

Prop 

An 

1200 

CL6 ooq 

ai 

H 

Doneton Tyson 

B&C 

Jun 

934 L 

(439) 

- 

H 

Ertfti 

BrMa 

An 

1230 

(523) 

a75 

P35) 

Ftetech 

Med 

Jun 

9,000 L 

(3200 g 

- 

H 

Fats 

LeH 

AJ 

60200 

(37200) 

2.75 

P./5) 

Fortune 08 

Off 

An 

583 

(1831) 

- 

H 

Rnncfo Connection 

ReGn 

Jtd 

34,700 

(30,600) 

- 

H 

Carton Lnglnserkig 

Big 

Jin 

170 

(197) 

155 

(1.125) 

Global Group 

FdMa 

Jun 

715 

m 

02 

P2) 

Greenacra 

Ftth 

JU 

873 

(794) 

0.16 

P19 

HIV 

Med 

An 

2200 

(121« 

075 

(tfl 

naramorsofi 

Prop 

An 

24200 

(1520H 

35 

M 

Kay (Norman) 

Big 

Jun 

388 L 

<877 L) 

- 

H 

HaOcatBar 

Prop 

Jii 

4220 

R220) 

2.75 

(22) 

Hepworth 

BdMa 

Jun 

35200 

P720^ 

52 

(55) 

Mggs&Hti 

BSC 

Jun 

850 

(125) 

12 

nfl 

Hodder HeatOne 

Med 

Jun 

?ran 


22 

(125) 

Hofftinscm Group 

Eng 

A4 

749 L 

(T22) 

05 

(05) 

Ham at Fnser 

RsGn 

Jd 

42001 

(800^ 

1.7 

H 

How Group 

Eng 

Jun 

1,120 L 

(1.450 L) 

0275 

P375) 

Hunflsigb Tech 

Eng 

Jun 

2270 

pm 

2J5 

(30) 

Inchcapa 

Out 

Jun 

1K200 

(130.400) 

62 


foitannettiata Cap 

OtFn 

Jun 

9,700 

(5200) 

375 

(W 

J8A Hoktegs 

SpSv 

Jun 

284 

(1270 l) 

OB 

H 

Joseph Holt 

Brew 

An 

3290 

SNE* 1 

122 

(llfl 

WearfoM 

PP8P 

Jui^ 

1200 

(i.ioq 

091 

H 

Kynoch Group 

rtfli 

Jun 

57 L 

(126) 

- 

H 

LkrtOn Park 

Htti 

An 

6260 

R50CI 

59 

(25) 

MIL tnstnananta 

ESS 

Jun 

2.420 

(Z.10C5 

19 

(1.7) 

Metafon 

Eng 

Jun 


(3260) 

12 

P91) 

NerrartbS 

nfa 

N* 

1260 L 

(4.190 q 

- 

H 

IwTOIl 

Tran 

Jurat 

688 

(1.110) 

4.47 

(447) 

North Sea Assets 

CUE 

An 

432 

n.ioq 

w 

H 

Chatty Software 

SpSv 

Jun 

804 

C 1439 

10 

H 

Radtafouat 

hTr 

Jti 

28 

(ID 

- 

H 

Redand 

BcMa 

Jm 

147.400 

(108200) 

825 

P25) 

Reflex Group 

SpSv 

Jmf 

1220 L 

P1B) 

- 

H 

Reftrge Asswanco 

ms 

An 


f-f 

37 

(345) 

RufoeraM 

BdMa 

Jun 


(2.160) 

12 

H 

Sctroder SpB Fund 

InTr 

Jtif 

7427 

(8023) 

32 

(3379 

Sean 

ReGn 

Ai 

53200 

(38200 

125 

(12) 

Senromex 

B« 

An 

866 

(747) 

31 

[\J* 

Sherwood Computer 

SpSv 

Jun 

SSL 

(541) 

. 

(1.79 

Signet Group 

ReGn 

Ai 

25200 L 

(26900 L) 

- 

H 

Smurfit (Jeffaraon) 

PPSP 

Ant 

251200 

(155200) 

1.4 

(1J1 

SpedaBy Shops 

Prop 

An 

602 

(71 l) 

. 

H 

Stylo 

ReGn 

Jura 

604 

(1250 l) 

- 

H 

TSS Stores 

ReGn 

Ai 


(3J90) 

22 

(22) 

Tarmac 

BdMa 

An 

33.100 

(2200) 

30 

PH 

TransTec 

Eng 

Jin 

3200 

£5280 

13 

(12) 

tidotr 08 

OK 

Junt 

628 

P*J) 


H 

Trinfty Hokfings 

Med 

An 

mso 

(4.760) 

225 

M 

UCM 

nfti 

Jm 

1,130 

(837) 

re 

H 

IMchem 

Hth 

Jun 

20200 

(17990) 

22 

(22) 

United tad 

Eng 

Ai 

583 

(1200 L) 

01 

H 

wacnora rvioos 

FdMa 

Ant 

9200 

(11.400) 

125 

(1.191 

Wensuni 

Tsn 

Jut 

509 

<50 

12 

#LSH) 

VufoCatto 

Chem 

Jun 

13200 

(9260) 

22 

P2I 


In patErtneaea are far the correspondng period) 

•Qvidends are shewn net penes per dm, etnwt* where otherwise Indented. L = toss. T Net osW 
w*» per share, tlrtth puns and ponce. *3 month figures. 41 US rtofcw aid twits. • ****** 
irt* end (?«. §S M* asset vdue. V Pro forma tastes versus pro tatma forecast. © 9 
G(M*s varan 12 mmtfi 4 10 month Agrees. * 14 mask Bfpras. 


RIGHTS ISSUES 

Bamer Homos ts to rate £29m via a Issue of 3m preference shares. 
Cadies Hottngs is to rase E27 4m via a 2 - 9 rtghs issue 8 HBp. 
Mdbnd Assets is ta rase E22m 11 a a 1-3 rights Issue 9 17p. 

Smurfit (4 la to r*» El 55m rfa a 1 - 10 rights issue. 

(MCtam a id nfcw ES8m via a J - 6 rights Issue at 244m sham 245p. 


OFFERS FOR SALE, PLAC3NGS & INTRODUCTIONS 

AsMioume Mdga ts coming to the market via a fatten of oppx fifflm. 

ClwrchB Chfou Is lo raise Cl 5m via a parang. 

HVofde Comtek to comfog lo nuAot eta a pnww placing of £25m. 

WoBngtan Underwriting b coming to die mate! vta a ptaeng at 30m stem 9 CL 



(1 





















t‘ti- ,• 



FINANCIAL T!MES WEEKEND OCTOBER ./OCTOBER 


2 1994 


WEEKEND FT V 



«5f sul r-i 


i* react h ■ 


*r: 

.V 



AFT E R TWENTY YEAR S OF CONSISTED T INCOME GROWTH , 
WE ARB PROUD TO ANNOUNCE- OUR BRAND NEW INCOME 
INVESTMENT TRUST. THANK YOU FOR YOUR PATIENCE. 


i ’ 


'VI 1 


good things come to those that wait, 
then our new trust is no exception. 

At last, you now have the opportunity 
to aim for rising income and an 
appreciable growth in your capital with 
Prolifie’s UK equity income specialists 
through our new investment trust. 

Indeed, since launch our three equity 
income funds have outperformed 90% of 
our competitors*. 

So with good reason, the new trust 
will be managed by the same team who 


concentrate on those income funds. 

What’s more, the trust is fully eligible 
for inclusion in a PEP. And. for every five 
ordinary shares subscribed for, you will 
receive one free warrant. 

For a mini-prospectus, either contact 
your financial adviser, complete the 
coupon or call the 

Prolific Prospectus line 
on 

0800 99 88 55 

Weekdays 9am-7pm Weekends 9am-5pm 


Because this is the one you’ve been 
waiting for. 


To: Prolific Income PLC Prospectus Service . 
FREEPOST, London EC4B 4JY. 

Please send me mini-prospectusfes ) for Prolific 

Income PLC. 


MR MRS US INITIALS SI R NAME . 


WUKVDVJH 


Lr 


RtOLIFIC 

Concentrating on investment 


. . « npt income rervested {gross income hi the case of Prefiic UK Equty Income Fund) lo 1st August 1994. Over 5 years, Profifictigti Income Unit Trust (bunched 25.1974) is 29th out of 94 and Prolific Extra Income Unit Trust (launched 26.10.1984) is 19th out of 3a 

Soiree: AH figures - Micropal offer to tw. net income rerwesw * w Equty i^ame Fmd was bunched on 16.12.1991. 

of shares and the income from them can go down as wefi as up and investors may not get back the fuH amoutf invested. Past performance is not necessarily a guide to the future. Infomation on a tased upm cwreirt tax legislation and may change. The benefits of a PEP depend upon the wSuidui 
Please remember that me value oi ™ investors. Investment m warra its rvofves a frgh degree of geamg so Hat a relatively smafi movement n the price of shares may result in a disproportionately large movement, unfavourable as wefl as favourable, in the price of warrants. 

The information contained herein is neither a prospectus, nor an offer of, nor an invitation to apply for, shares or warrants. Applications for shares in Prolific hcome PLC may be made only on the basis of the Listiig Particulars relating to the Company. 

bwd by Pnift: tesM lixE£rcca Unflcfl. Hast. 23 ftaireoV Landcn EC4R 8U). A menus ot MO. 


- — '"9rF7 


Qm9nvmit - 9 iii 9 pvwi ? aicirni in flip Ini IV n .MM Jni .Ha UUB 'SlO^JBl 10 SUTJOjlUOm QUl JOI HJBP 3UI 


VI WEEKEND FT 


FINANCIAL TIMES WEEKEND OCTOBER 1/OCTOBER 2 1994 


f 





a:±-j - 


To receive a mini-prospectus, 
including an application form, 
please telephone: 

0800 800234 

(24hrs) 


Lazard 

Investors 

Issued by Lazard Investors Limited, 21 Moortields. London EC2P 2HT. 
Tel: 071 588 2721 Fax: 071 374 2079 

Member oflMRO 


FINANCE AND THE FAMILY 


Best buys for the brokers 

Bethan Hutton considers the progress of investment trusts launched this year 


I nvestors have been spoilt 
for choice with invest' 
xnent trust issues: about 
50 new ones have 
appeared in the past 12 
months, plus dozens of conver- 
sion share Issues from easting 
trusts. And investors have 
poured money enthusiastically 
into them: new trusts have 
raised £5bn since January 1993 
and existing ones another 
£lbn-plus. But what has hap- 
pened to them since launch? 

Bristol-based financial 
adviser Hargreaves Lansdown 
last week polled four leading 
investment trust brokers. It 

Mercury European 
Privatisation 

Share price (penes) 

too I — 

”b 

90 —I r-j-’ — 


Mar 1994 C 

Sounc* FT Graphite 

Mercury World Mining 

Share price (pence) 

125 - -• 




wm 




nr" 

m 


8 . 25 % 

V GROSS Rfi.y 






tANTEED 

FIXED RATE 

♦INVESTMENT RATE FIXED & 
GUARANTEED FOR 3 YEARS. 

♦MONTHLY INTEREST OPTION 
AVAILABLE AT &00% GROSS P.A. 

♦MINIMUM DEPOSIT £10,000. 
♦MAXIMUM DEPOSIT £500,000. 

♦GUARANTEED SECURITY FOR 
YOUR DEPOSIT. 

ALSO AVAILABLE 


GOLD PLUS ACCOUNT - 
6.65% GROSS PA* 

(90 DAYS NOTICE) 

INSTANT GOLD ACCOUNT - 
620% GROSS P.A.* 




ia on^ an Aoxun 1 mnnoiv Auxn«v RM 8 n 8 Z 2747 a mx auuicv fO«i i an i eoi roR uohik cents. UABures Or rORmMN 
CHANWL ELMOS UD A*t GUARANTEED BT FORMAN BUUWJCSOOTTV LNECRDS TKM& O 7HI MONO SCOOTS AO «*. 
Mcrenbpadnulyon In |noqreidi)nn«idCi(*iorlwa«npain3R]. 

No ^(MsutipatHaRl aun««K Amd icmv Rnnainca a anKcrgshs K>m». *kn« mane iwbbie. 


PORTMAN 

CHANNEL ISLANDS LTD 


nnmai OwM IWW Ul Iw k, piMpal itax of hsMcn nOMcrCavn: C»4v Uw. 5 l Ann. AUcran. Cb«ia MmH. D(p<i<>> «uh rMnin 

Q«WHMMn»iaif^bWlkp^riim<iaiSdinn.i^MI«l^toiWiiii>maawCi>ii|>iivh>Miinilink>Bc 
n«K*cna'Ifrp>ia>nrojfei*i*i*Cu'nnrriOnft«incc 1971 uiiwhM MnnOwnM^U.nsaHMMiira>i)i20.ji TtK'IVn.CueTOcy: 
QuwbUiUiuK rrahMciTln0uem»tvM<it««ttg7l.n.,i»hcAro'M«duJ»J<ft»ytarg«TMnBJang&«kty Ihemoxrwm uSnlKoaunoar 
hnwl]«nlWnkUlMMUit«n)M 



asked if they would buy, sell or 
hold each of the 170 d iff erent 
investment trust shares and 
warrants issued since the 
beginning of last year. 

About 90 per cent of the 
stocks were rated “hold" - 
which was to be expected, 
given the usual advice to buy 
investment trusts for the 
medium to long term. Bat 
three were recommended par- 
ticularly as buys: EFM Small 
Companies, Mercury World 
Min trig and Mercury European 
Privatisation. 

One reason given for 
choosing them was the bro- 
kers’ high opinion of the fund 
managers - always an impor- 
tant consideration. Also, all 
three are trading wen below 
their highc ami are, the r efore, 
seen as good value although 
Mercury World Mining is still 
at a slight premium. 

The most interesting sell 
recommendation was 3i, the 
giant venture capital trust 
floated this summer. It went 
from a discount of 13 per cent 
at launch to a pr emium of 
nearly 7 per cent, and its share 
price gained more than 20 per 
cent, although it has since 
dropped bads a little. The bro- 
kers felt the trust's premium, 
was not Justified and that 
other venture capital trusts 
trading at wide discounts were 
better value. 

Other sell recommendations 
were dominated by high-yield- 
ing trusts - Johnson Fry Utili- 
ties, Lazard High Income, 
Abtrust High Income, Gart- 
more British Income and 



Growth - which the brokers 
felt had become too expensive. 

Private investors are often 
reluctant to part with a share 
which has done well for them. 
But Mike Scott, of Hargreaves 
Lansdown, says that when a 
trust has achieved in a few 
months the performance you 
expected over 18 or 24. it could 
be time to sell. 

He points to Fleming Chi- 
nese (see graph), which was 
la unche d last year, initial sub- 
scribers who sold at the high 
reached not long after launch 


could have made handsome 
profits. Those who held on 
have seen the value of their 
shares eroded to below issue 
price - although that could 
present a buying opportunity 
for new investors or those who 
sold at the peak. 

“New issues can be particu- 
larly volatile, especially spe- 
cialist trusts which can throw 
up some very good trading 
opportunities, n says Scott “In 
some cases, investors are pres- 
ented with an early opportu- 
nity to take profits on a new 


issue because shares have been 
driven to large premiums, or 
markets in which they 
invested have soared in the 
short term." 

But this has been rare in 
recent months - very few new 
issues are trading at above 
launch price (the main excep- 
tion is the four new Latin 
American trusts). So, although 
you should be prepared to sell 
early if the opportunity arises, 
it is still important to invest 
only if you are prepared to 
hold a trust over the long term. 


MEW INVESTMENT TRUST LAUNCHES 

— Taws — 


95 ■ * — * — ■ — » 

Doc 83 

Sourca: FT Graphite 


31 Group 

Share price (pence) 
340 


SUB 

Manager (Ttftpnme) Broke Sacur mnante Em % Dnaf? Schama P P E % E % OWw Patou 

■ BZW Commodities Trust 

BZW (071 623 2323) 

(te Zoete & Sevan Commodities 15 100 n/a No Mo lOOp 96.5p £5,000 1.25 n/a n/a 6/10/94-20/1 0/94 

A mainly institutional fund which may appeal to larger private investors, investing In a wide range of commodities 

■ Fidelity Special Values 

Fidelity (0800 414161) 

SG Warburg UK Growth 1:5 30v n/a Yes Yes loop 95, 5p £1,000 035 rVa n/a 19/10/94-9/11/94 

New twin for Fidelity's Special Situations unit trust, run by Anthony Bolton 

■ Infostructure Trust 

BZW/Sodeti G&ti’rate Strauss TumbuG 0)500 202021) 

See Sen ST Emerging Mkte VS 40+ n/a No No lOOp 96p - 1-25% n/a n/a 25/1Q/S4-4/11/94 

innovative trust planning to invest in "information infrastructure' in emerging markets 

■ Lazard Brewers 

Lazard Investors (071 614 3065) 

Greig Middleton UK General 15 50m 3% Yes n/a lOOp 96p £1,000 1% rVa n/3 doses 22/10/94 

Specialising in region^ brewers, pub companies and others involved in the production or sale of drinks 

■ Prolific Income 

ProSfic (0800 998855) 

James Cape! UK toe Growth 1:5 40+ 4%+ Yes Yes lOOp 95. Ip 2,000 0.6% 2.000 1.6% 22/9/94-13/10/94 

Similar Investment strategy to existing Prolific High Income unit trust, ranked 30th of 94 funds over five years 


- Out** PEP bsua PEP - 

Issue Mrtmum iMmun Annual MUaum Amud 
ffip Savtogs Pries MW M Clung* tost, dungs 

Dual? Scheme P P E % E * 



loop 95.5p £1,000 095 


280 I 


Jui 1994 

Source; FT Graphite 

Fleming Chinese 

Share price (pence) 

150 — 

140 4 

13Q JU — - - - 

™ :/A= 


lOOp 96p 


1.25% n/a 


n/a 6/10/94-20/10/94 


19/1 0/94-9/1 1/94 


25/10/94-4/11/94 


doses 22/10/94 


NEW UNIT TRUST LAUNCHES 


Spuctal nOcr - 
Period 


Oct 93 1994 

Source: FT Grapbtta 


Manager (Tdepftcpfl Suctor % Qud A»dL % % % £ % % % £ % 

■ HL Investment Trust Portfolio Trust 

Hargreaves Lansdown investment trust units 2 Yes Yes 5.75 1.75 No 2,500 5.75 1.75 No 2500 Yes* 7/10/94-27/10/94 

Unit trust investing in a wide range of UK and overseas investment trusts, with a 5 per oent annual withdrawal faciBty. 

' 1 pmtntaga point dtonunt on fcwtfnitt o»or £3,000; 1 JS owr £10.000, a onr CSOjDOO, mid 3 Mr £50. OOP. 

■ Managed Growth Fund 

M&G (071 626 4588) Fund of Funds 1 Yes Yes 5 15 No £500 0 1.5 Yes” £1,000 - 8/10/94-28/10/94 

M&G's second fund of funds, this one concentrates on tong-term growth. It is also the second M&G rn>- initial-charge Pep 
~ WWW etegw qn a tHtJng aa«*» flow <6 par cam tn gw Untf year dam to 0 Mar me and t* tha ath year. 



Right now. the Far East and the Pacific 
Rim are experiencing a tidal wave of foreign 
investment. Economic growth races are double . 
those of Western markets. Industrial output 
is booming, yet inflation remains subdued. 

We believe this represents an exceptional 
investment opportunity - and we know more 
than our fair share about these markets. 

Gartinore manages over Jtl billion in 
and around the Pacific. 

We run an award-winning investment 
trust which specialises in ]% BONUS 
the region. We also manage ALLOCATION 
the Pacific Growth Fund: . OF UNITS: 
a unit trust which has TO 30.11.94. 

beaten every other UK authorised unit trust 
since its launch in 1984. 

In the last five years alone, this Fund 
has grown by 208% - comfortably- beating 
the 59% return from the FT-SE-A Ail-Share 
Index In the process. 

Now the tide is rising again. To catch it, 
call us free of charge on the number below. 

Gartmore 

uwir rffysr* 

CALL FREE ON 0800 289 336 


^luretoriPperfiananceneuim Mkiopal ItKii- iflrt tu M. im inromr mmreoed a* ai IS W Earths perlonmncc figure* avaibble. I 1C 84 TtK price M unJuanJ«he Income (non then my go down n »dl a up and vnu nuy im get hock U* amount y,*i Px ,, CKrtoraa „ 

1MBO. tauiw and AUTU> ’ ~ 


i nm mpunlr a Rimlcm future pcifmraancc toned bv LUnmorc Fund Managers mmicd, a member id 



iVo 


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SA 







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n 


. \ 


\i ^ 


FINANCIAL TIMES WEEKEND OCTOBER 1 /OCTOBER 2 1994 


WEEKEND FT VII 


FINANCE AND THE FAMILY 


C hanges to UK f I 1 * , 1 p • • 

iss Tighter tax rules for immigrants 

today and will have a S ^ 

significant effect on those 


wanting to move to the UK, 

When the changes (see bos 
at right) were announced, the 
government was accused by 
some critics of "selling the 
right to live here". Its response 
was to claim it was simply 
encouraging investment. 

But one side-effect of the 
changes has become apparent 
already - the significant tax 
consequences for many of the 
people the government says it 
is trying to attract. 

As well as affecting those 
planning to come to the UK. 
the changes could affect those 
already in the country. Many 
people have to renew their 
residence visas from time to 
time. And where the renewal is 
treated as a new application, 
the approach taken by the 
immigration authorities could 
change. 

The best way to demonstrate 
the practical effect of the 
changes is by way of example: 

■ Hassan, a man of 
independent means 
Imagine a successful 
businessman from the Middle 
East, Hassan, who has 
interests in various countries. 
Having built up his business 


David Freeman looks at the implications for would-be settlers - and those in the UK already 


over a period of 30 years, he 
decides at age^l that he wants 
to retire early an d move to the 
UK with his wife and young 

famil y. 

in the past, he would have 
applied to go to the UK as a 
man of independent means. He 
would have had to show that 
he had some connection there 
- perhaps a house, or regular 
holidays and business 
connections - together with 

assets of more than £200,000. In 
all probability, he would have 
been given the right to live 
there on condition he did not 
work. 

From today, that is no longer 
the case - because of his age. 
Only people over 60 will be 
able to go to the UK under the 
new independent means rules. 

One or the advantages of the 
independent means rules was 
that there was no obligation to 
take any fixed amount to the 
UK. Had Hassan made toe 
application before today, he 
could have organised his tax 
and finanrial affairs to ensure 
he kept his UK tax to a 
absolute minimum - perhaps 
even to zero. 



The tax changes 

OLD RULES 


NEW RULES 


Independent 

means 

Any age, over 
£200,000 capital 

Over 60s only 

Over £25,000 pa. income 

Investor 

Did not exist 

Have assets of £1m plus 
Invest £750,000 in 
government bonds or 
shares. Any age 

Sole 

representative of 
foreign business 

Prove you are 

needed. 

No legal formality 
in the UK 

Set up registered branch 
or subsidiary in the UK 
(Le. establish UK tax 
presence 

Businessman 

Show access to 

£200,000 

investment 

£200,000 must be in 
your name 


■ Hassan, the Investor 
Since he is too young to move 
to toe UK as a man of 
independent means, Hassan 
might investigate toe 
possibility of going as an 
“investor’'. 

If he can show that he has 
£lm, and is prepared to invest 
£750,000 of it in government 
bonds or shares, he should be 
all right. Suddenly, though. 


Hassan finds he needs two sets 
of advice - first, on how to 
make the immigration 
application and, second, on the 
tax consequences of toe 
promises he is makin g. For 
instance: 

□ He will have to be careful 
about how he takes his money 
into the UK - it is possible the 
Inland Revenue could treat 
him as being resident because 


of past visits, ft would be 
unfortunate if he was taxed 
because of this. 

□ Once toe money is tn the 
UK, he will have to invest it. 
The income from this will be 
taxed in the same way it would 
be for anyone else. 

□ He will need to submit tax 
returns (although, as a man of 
Independent means, he could 
avoid this if he arranged his 


affairs carefully). 

□ The tax authorities will 
want to see if toe income from 
his UK investments is enough 
to support Hassan and his 
family in toe style to which 
they have become accustomed. 

If toe Revenue is not 
convinced that toe investment 
income is enough for this 
purpose, and Hassan continues 
with an up-market life-style, he 


might need to prove where he 
is getting the extra resources 
to do so. But with care, and by 
following the rules, he should 
pay tax only on UK-generated 
income. 

What is clear is that 
Hasson's life in the UK is going 
to be rather more complicated 
than it would have been as a 
man of independent means. 

The Revenue will be in contact 
with him or his accountants 
every year when his tax return 
is completed. 

The new rules are not good 
for Hassan, and he will have to 
decide if he wants to wait until 
he reaches 60 before applying 
to go to the UK as a man of 
independent means, or accept 
toe restrictions that will be 
imposed upon him as an 
investor. 

■ Omar, a sole 
representative 

Having been successful in his 
business abroad, Omar might 
be asked by his company to be 
its sole representative in the 
UK. Under the old immigration 
rules, he would have had to 
pay tax on his salary like 


anyone else, but the company 
would have been outside the 
UK tax net. 

From today. Omar's 
company must register a 
branch or subsidiary if he is to 
be its representative. It will 
then have a UK tax profile - 
which it might not want. 

■ Hassan, the businessman 
Hassan might decide he does 
not wish to be a man of 
independent means and wants 
to carry on working. So, he 
could consider setting up a 
business in the UK. 

The rules about this have 
□ot changed sig nifican tly; the 
minimum amount of money 
required to be invested in a 
business remains only £200.000. 
which must be held in toe 
name of the person moving to 
toe UK rather than, say, in 
trust or in another company. 
The disadvantage for Hassan is 
that, if he dies prematurely, it 
will be taxed under UK 
inheritance tax rules. 

The subtle changes to toe 
immigration rules undoubtedly 
will make the arrangements 
for would-be immigrants more 
complicated. Never before has 
immigration and tax pl annin g 
become so inter-linked. 

Still, with careful planning, 
the many tax advantages 
available to people from 
abroad will re main . 

■ David Freeman is a partner 
at City solicitor Elias Freeman. 


Choose right and double your money 


I f you want to take 
advantage of stock mar- 
ket growth but prefer 
the pooled route rather 
than direct investment, 
the choice of products and pro- 
viders Is bewildering. 

The latest survey of the most 
popular savings products from 
life offices shows that, with the 
right choice, you can double - 
even treble - your money. But 
if you get it wrong, your initial 
investment could be halved. 

In its 1994 survey* of unit- 
linked products. Money Mar- 
keting examines the charges 
and returns for maximum 
Investment plans, single pre- 
mium bonds and personal pen- 
sions. among others. 

Maximum investment plans 
and single premium bonds 
compete, with other pooled 
investment vehicles - in par- 
ticular with unit trusts - but 
there are significant differ- 
ences in the way these funds 
are taxed. Life office funds are 
liable to basic-rate income tax 
and capital gains tax, but some 
"q ualif ying” products can offer 
a fund that, at maturity, is free 
of higher-rate tax. This is 
because the product has an ele- 
ment of life assurance. 

While these products can be 
attractive to higher-rate tax 
payers, those on the basic rate 
have little to gain. John Jen- 
kins, of actuary Alexander 
Clay & Partners which co-pro- 
duced the survey, says: “Inves- 
tors should note that the 
income tax charged on the 
fund cannot be reclaimed. 

“The same is true of the capi- 
tal gains tax which is charged 
on the build-up of the life fund. 



Top 10 MIPS 


Bottom 

10 MIPS 

Top 10 S-P Bonds 

Bottom 10 S-P Bonds 

Company 

£ 

Company 

£ 

Company 

£ 

Company 

£ 

Allied Dunbar 

13.511 

Swiss Life 

10,318 

Sun Ufa 

14,964 

Swiss Life 

10,995 

Norwich Union 

13,329 

Refuge 

11,010 

Allied Dunbar 

14.644 

Guardian 

11,582 

Sun Life 

13,273 

Merchant Irrv 

11,406 

Legal & General 

14,617 

Royal Life 

11,955 

Prov Mutual 

13,160 

ComhB 

11,431 

L and M 

14,546 

Alico 

12,153 

Standard Ufa 

13,141 

Barclays Life 

11,460 

Norwich Union 

14,334 

MGM 

12,179 

AXA E&L 

13,030 

Prov Capitol 

11.515 

Wesleyan 

14,292 

Manulife 

12,573 

Confed Life 

13,032 

Skancfta Life 

11,534 

M&G 

14.211 

Refuge 

12,601 

Peart 

12,942 

Laurentian 

11,567 

Prudential 

14,190 

Com Union 

12,621 

London Ufa 

12,908 

MGM 

11,784 

Liberty Life 

14,152 

ComhiD 

12.639 

Legal & Gen 

12,870 

Guardian 

11507 

AXA E&L 

14,128 

Albany Life 

12,695 

Ktyav post pvt Kgs hosed an £70 monthly 

lOyear put pvt Ogs based on CTO morn Ply 

S-yaer pvt Ogs based on Pogls premium ot 

S-yov pvt 9ns 

Posed on stogto prwnfcan ot , 

premium far mmamoUng mm. aped 29. 

premkjm tor nonsmottno mafci aged 2ft 

nano tor nm-smeHnp mala, apod 29. 

&Q.OOO for non-vnoHng mote, ogod 29. \ 

Sawetc Money Mrtazry 


Source: Money Uvtaxino 


Bounx Money Uarinting 


Sdurov Uoney UvtvUng 



You cannot get a refund even 
if you have not used up your 
annual CGT allowance. In this 
respect, unit trusts are better, 
because CGT is not charged on 
the build-up of the fund and, 
when you are assessed for this 
liability, you can use your 
allowance to offset toe tax." 

Even higher-rate taxpayers 
should check, before signing 
up for one of these products, to 
see if the same result can be 
achieved by separating the two 
key elements - say. by using a 
unit or investment trust for 
the investment and simple 
term assurance for the life 
cover. 

Jenkins adds: “For the more 
active investor, a maximum 
investment plan is more flexi- 
ble and cost-effective for 
switching between funds. But 
if all you want to do is pay a 
regular amount to a managed 
or standard equity-based fund, 
then unit trusts offer better 
value." 

■ Maximum investment plans 
These are regular premium 


savings plans that run for a 
minimum of 10 years and offer 
life cover worth at least 75 per 
cent of the total premiums paid 
over the term of the contract 
The survey shows how the 
returns vary considerably. Top 
provider for a £70-a-month 
investment over 10 years was 
M&G with £15,250. Worst was 
MGM, which returned £10,799. 

Charges also vary signifi- 
cantly. If you invested £100 a 
month for 10 years, the proj- 
ected total (where no charges 
are deducted and assuming 7.5 
per cent growth a year) is 
£17,659. The effect of London 
Life's charges would be to 
reduce this figure by £1.269 
while the corresponding figure 
for the highest charger. Reli- 
ance Mutual, was £3,380. 

■ Single premium bonds 
These are lump sum invest- 
ments that are uot “qualify- 
ing", so higher-rate tax will be 
charged where applicable. The 
top managed fund over five 
years was from Sun Life, with 
a return of £14,964 on an 
investment of £10,000. 


.. * r. .f 







Capture 

the performance 
of the 

world's commodities 
markets 

BZW Commodities Trust Limited 

Placing and Offer for Subscription 

LAUNCH DATE 6TH OCTOBER 1994 

• exposure through commodities to 
rising industrial production 

• portfolio diversification 

• a hedge against inflation 


To reserve a mini-prospectus and application 
form, plaasa call freephone 0500 202021. 
Minimum investment £5,000. 

BZW Commodities 
Trust Limited 

Managed exposure to a wide range of commodities 

thfa admtoewHH habwn prepared and Issued by de Zocw * Sevan Limned. a 
rnnnber <rf The Seeurtnes ana Future* Authority, tor the purposes of Seaton 5T ot 
the financial Servfcw Act 1H86. Apptotfon tor OrttufLiry 3ma and VlbrranB a 
B 2 W Commodities Tmrt United muM he nude only on the h*» ol thcLbtms 
frrffcnlan Killing to thr eontjamy which ue expected to be tewed on MjOctoAtr 
lW. Rtft performance b Duff necessarily * grade to hum peiwnmncw. The valor 
ot investments may gatfcnvn as wdl u up and the invertor m*y h« 8« toeV the 

araMUM orrgUufly invested. 



Choice of sector is cruriaL 
Skandia's Gartmore Hong 
Kong fund returned a spectacu- 
lar £37,405 after five years, 
more than trebling the initial 
investment, while MGltTs spe- 
cial situations fond returned 
just £4350 for the same period, 
less than half of the initial out- 
lay. 

Now you 
pay more 
to insure 

P rotecting your assets 
becomes more expen- 
sive this weekend, 
with the new insur- 
ance premium tax of 2.5 per 
cent coming into force today. 

It will be noticed most by 
motorists and those buying 
buildings and home contents 
cover, but it applies to all gen- 
eral policies including travel 
insurance and toe employment 
protection cover often sold in 
conjunction with loans and 
credit cards. 

It also includes contracts 
which may not normally be 
thought of as insurance, such 
as extended warranties on 
electrical goods and member- 
ship of breakdown recovery 
services like the AA and RAC. 

While tax does not apply to 
long-term products, like life 
insurance or most kinds of 
permanent health insurance, it 
will hit private medical insur- 
ance. 

A handful of insurers - 
including the Prudential and 
Pearl - have announced they 
will absorb the cost rather 
than pass it on to their cus- 
tomers. But this could be 
short-lived: no Insurer has 
committed itself to absorbing 
the tax for more than the first 
year and some people in the 
industry fear it could be 
increased in next month's 
Budget 

In other EC countries, toe 
tax can be as high as 30 per 
cent on some types of insur- 
ance, although a more normal 
level is 5 to 10 per cent 
Research by AA Insurance 
has found that UK motor 
insurance premiums rose on 
average by less than 0.5 per 
cent between July and Octo- 
ber, rather than at least 2.5 
per cent, as might have been 
expected. So, although most 
insurers are passing on the 
cost of the tax, underlying pre- 
miums are falling for other 
reasons - which almost can- 
cels out the effect of the new 
levy. 

Bethan Hutton 


Charges are less of an issue 
with single premiums because 
this structure avoids the high 
up-front deductions associated 
with regular premium plans. 

* Money Marketing 1994 Unit- 
Linked Survey, price £3.75. from 
Ian Paxton on 071-439 4222. 

Debbie Harrison 


Annuities 


The average annual inflation 
rate over the past decade 
stands at 5.25 per cent, so 
August's 2.4 per cent might 
appear relatively low, writes 
Peter Quinton, of the Annuity 
Bureau. But those approaching 
retirement need to consider the 
most effective way to protect 
annuity income against infla- 
tion. 

Some protection can be 
achieved by choosing an 
escalating annuity. This guar- 
antees a selected annual 
increase of 3 per cent. 5 per 
cent, 8J5 per cent (which can be 
subject to Inland Revenue 
restrictions) or. alternatively, 
in accordance with the retail 
prices index. 

A comparison with last 
week's table listing level annu- 
ity rates shows the first year’s 
payments for escalating annu- 
ities is considerably lower. 

Over time, however, income 
will outstrip what would be 


LATEST ANNUITY RATES 

Compulsory purchase annuity 

Mala age 55 

Annuity 

Female age 50 

Annuity 

Escalating at 5% pa 


Escalating at 5% pa 


Royal Life 

£6,617.68 

Prudential 

£5,475.96 

Prudential 

£6,598.20 

Royal Life 

£5.416.65 

Sun Life of Canada 

£6,46356 

Sun Life of Canada 

£5959.04 

Mate age 60 

Annuity 

Female age 60 

Annuity 

Escalating at 5% pa 


Escalating at 5% pa 


Royal Life 

£7,618.75 

Royal Life 

£6,72097 

Prudential 

C7.469.76 

Prudential 

£6.557.88 

Canada Life 

£7,366.68 

Sun Life of Canada 

£6959.92 

Male age 70 

Annuity 

Female age 70 

Annuity 

Escalating at 3% pa 


Escalating at 3% pa 


RNPFN 

£12,32892 

Royal Life 

£10,534.45 

Royal Life 

£1298890 

RNPFN 

£10.35094 

Canada Life 

£12,113.40 

Canada Life 

£10235.40 

Joint Ufa - 100% spouse's benefit 

Male 60/Femala 57 

Annuity 

Male 65/Femafe 63 

Annuity 

Escalating at 5% pa 


Escalating at 5% pa 


Royal Life 

£5.741.87 

Royal Life 

£6,56524 

Prudential 

£5.735.86 

Prudential 

£6,420.60 

Sun Life of Canada 

£5,54096 

Canada life 

£6939.00 

AS poymems ere montnh In enters, without a guarantee penod. Rates ernes at 27 September 1994. 

Rtpsm assume opundwo price atnOOMO endue shown gross. PNPfN annuities ere eeaeaoh on^r 
to Bum In via nursing and eUed professions. Roms supplied e y i he Amaty Bureau Unwed. 

Enurprao House. 5SA35 Upper Ground. London. SE1 9PO Tot 071 620 4090 



achieved through a level annu- 
ity - particularly if the annu- 
itant anticipates living beyond 


toe average life expectancy - 
78 for a man aged 65 and 82 for 
a 65-year old female. 


EDUCATION 


Ursuline 
Convent School 

Weogjiu-on-Sea 
6th Form Open Evening 1 1th October 
Open Day 20th October 

Tel 0843 834431 


Coutts & Co Interest Rates 


SAVINGS ACCOUNTS 


Effective 3rd October 1994 


Gross 
interest 
rare p.a. 

Gross 

compounded 
annual rate 

Three Month Reserve Account 

£50,000+ 

5.25% 

5-35% 


£25,000-£49.999 

5.00% 

5.09% 


1T0.0C0-L24.999 

4.75% 

4.84% 

Current Account with Cash 

£50,000+ 

4.00% 

4.06% 

Management Option 

£20,000.£49,‘W 

3.50% 

3.55% 


£5 900 -£19.909 

3.0 0% 

3.03% 

Reserve Account for Personal 

£50,000 + 

4.00%. 

4.06% 

Customers 

£20.000-£49.999 

3_m 

3.55% 


£5,000-£ 19,999 

3.00% 

3.03% 

Reserve Account for Businesses/ 

£100,000-11 million 

3.25% 

3.29*% 

Charities/Societies 

£25.ftXV£99,999 

3.00% 

3.03% 


£10.000-124,999 

2.25% 

2.27% 

High Interest Clients Account 

£100,000+ 

3.25% 

3.29% 


£25,000-£99,O99 

3.00% 

3.03% 


£l0,000-£24.999 

2.25% 

2.27% 

7 Day Notice Deposit Account 


1% 

1% 

TESSA 


S.75% 

5.68% 

Charity TESSA 


5.125% 

5.22% 

■We are able to place sterling and currency 
details may be obtained from your branch. 

with the Money Markers. Ratis. Arc 

subject io daily variation. Fun her 

•Where appropriate, Basic Rate Tax will be deducted from inter of cicdircJ or 

paid (which may lx- reclamed by 

r»:-n- resident taxpayers). Subject to the required registration form, miensr will be paid prow. 

Base rate 

5.75% p.a. 


MORTGAGES 


Effective 3rd October 1994 for new borrowers, 1st November 1994 for existing borrowers. 
8% per annum 836% typical APR 

Credit uonly available in persons aged 18 ox over and U subject lo Sniui and Cundiitord. 

Written quoctihxu are available from Courts & Co ai the address sec nil below. House Mortgages are provided by Court-. 
Finance Co which Is -i wholly owned subsidiary of Courts & CoSecunly and iruunmer air required, liner cm rales may vary 

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN 
SECURED ON IT 


VISA CLASSIC CARD 


Effective 1st November 1994 on outstanding borrowing. 

0.9875% per month 13.20% APR 

It ynjr outstanding balance is less than £5. you mini pay a all by thr dale shown on your aiainm-m. If your uiiLminJin^ 
balance Is turn than 15 you must F°V £5 or 5% of the tularicc. whichever ts ihc greiret 



440 Strand, London WC2R 0QS Tel; 071 753 1000 




k”VV 



mg data lor the monitoring oj targets, ana me iur mu iiuuuiiug ui wumb 




VTII WEEKLEND FT 


FINANCIAL. TUVI£S WEEKEND OCTOBER 1 /OCTOBER 2 1994 


■ ★ 

FINANCE AND THE FAMILY 


Life offices face shake-out 


At least 40 could close under new rules, says Debbie Harrison 


C onsumers should 
benefit next year 
when life insurers 
enter a period of 
increased regulation and price 
competition. 

What is not clear is whether 
the predicted demise of at least 
40 of the total 103 life offices is 
entirely good news. Clearly, it 
depends on whether you boy 
your long-term investment 
product from a winner or loser. 

The trigger for the shake-out 
is the introduction in January 
of rules that require life offices 
to tell clients exactly how 
much they pay advisers and 
salesmen in commission, and 
what deductions they make for 
administration. 

Until then, they can hide 


Your CGT 


The table shows capital gains 
tax indexation allowances for 
assets sold in August 
Multiply the original cost of 
the asset by the figure for the 
month in which you bought it 
Subtract the result from the 
proceeds of your sale; the 
balance will be your taxable 
gain or loss. 

Suppose that you bought 
shares for £6,000 in September 
1985 and sold them in August 
1994 for £13,000. 

Multiplying the original cost 
by the September 1985 figure 
of 1.516 gives you a total of 
£9,096. 

Subtracting that from 
£13,000 gives a capital gain of 
£3,904 which is within the 
CGT allowance of £5,800. 

If selling shares bought 
before April 6 1982, you 
should use the March 1982 
figure. The RPI in August was 
144.7. 


behind meaningless "standard 
charge” illustrations that tell 
you nothing. 

Naturally, the low chargers 
and the top performers (not 
necessarily the same offices) 
are fairly relaxed about their 
future. The rest are worried. 

Last week, we reported a 
Money Management survey on 
personal pensions which 
revealed that the Hearts of Oak 
friendly society deducted 40 
per cent of a client's premiums 
in charges. From January 1995, 
the client will be told about 
these costs before making a 
commitment - and is likely to 
buy elsewhere. 

In theory, providers who 
combine high charges with 
poor performance should go to 


the wall, in practice, the gov- 
ernment is unlikely to let this 
happen because of the destabi- 
lising effect this would have on 
an already beleaguered life and 
pensions industry. 

Instead, we are likely to see 
a series of take-overs and 
mergers led by the companies 
with the most financial clout 

Only this week. Sir Mark 
Weinberg, the man behind 
some of the largest and most 
successful direct sales 
operations, announced he was 
to chair a new company with a 
£100m “vulture fund". 

His aim is to hover over the 
stragglers, pick off the best, 
close them to new business 
and manage their existing 
funds. 


CGT INDEXATION ALLOWANCES: August 1994 

Month 

1982 

1983 

1984 

198S 1986 

1987 

1988 

January 

_ 

1.752 

1.666 

1.587 1.503 

1.447 

1.401 

February 

- 

1.744 

1.659 

1.574 1.498 

1.441 

1.395 

March 

1.821 

1.741 

1.654 

1.559 1.496 

1.433 

1.390 

April 

1.786 

1.717 

1.632 

1.527 1.482 

1.421 

1.368 

May 

1.773 

1.710 

1.626 

1-S20 1.479 

1.420 

1.363 

June 

1.768 

1.706 

1.622 

1.517 1.480 

1.420 

1.357 

July 

1.767 

1.696 

1.624 

1.519 1.484 

1.421 

1.356 

August 

1.767 

1.689 

1.609 

1.515 1.479 

1.417 

1.341 

September 

1.768 

1.681 

1.606 

1.516 1.472 

1.413 

1.335 

October 

1.759 

1.675 

1.596 

1.514 1.470 

1.406 

1.321 

November 

1.751 

1.670 

1.591 

1-509 1.457 

1.399 

1.315 

December 

1.754 

1.665 

1.592 

1.507 1.453 

1.401 

1.312 

Month 

1989 

1990 

1991 1992 

1993 

1994 

January 

1.304 

1.211 

1.111 1.067 

1.049 

1.024 

February 

1.294 

1.204 

1.105 1.062 

1.043 

1.018 

March ■ 

1.289 

1.192 

1.101 1.059 

1.039 

1.015 

April 

1.266 

1.157 

1.087 1.043 

1.029 

1.003 

May 

1.258 

1.147 

1.084 1.039 

1.026 

1.000 

June 

1.254 

1.142 

1.079 1.039 

1.026 

1.000 

July 

1.253 

1.141 

1.081 1.043 

1.028 

1.005 

August 

1 .250 

1.130 

1.079 1.042 

1.024 


September 

1.241 

1.119 

1.075 1.038 

1.020 


October 

1.231 

1.111 

1.071 1.034 

1.020 


November 

1.221 

1.113 

1.067 1.036 

1.022 


December 

1.218 

1.114 

1.066 1.040 

1.020 


Source: Hand Revenue 


Bacon & Woodrow, the con- 
sulting actuary which is pre- 
dicting the demise of 40 life 
offices, also said that just 10 
per cent of existing offices 
appeared to be cost-effective. It 
added: “The remainder, mostly 
traditional life offices, are Leav- 
ing themselves open to attack 
by the new. lower cost, simple- 
savings providers.” 

The question investors 
should be asking is: “If I invest 
with a life office that subse- 
quently is taken over, will my 
fund be well managed?” (After 
all, financial clout is not syn- 
onymous with good perfor- 
mance and low charges). The 
answer, unfortunately, is: 
“That depends." 

In theory, a fund that is 
closed should do well because 
it does not bear new business 
costs. On the other hand, if the 
High charges imposed by the 
original life office are main- 
tained, along with the early 
ter min ation penalties, you 
could be stuck in a situation 
where it is unprofitable to stay 
but expensive to get out. 

To make its predictions. 
Bacon & Woodrow considered 
the cost of acquiring new busi- 
ness and maintaining policies 
in force. It then provided a 
rough identikit of the survi- 
vors but no actual names. 

Among the survivors, how- 
ever, B&S listed bancassurers 
(which sell financial products 
to bank or building society cus- 
tomers) and life offices that 
concentrate on specialist prod- 
ucts sold through independent 
advisers. 

Clear losers were the subsid- 
iaries of foreign companies, 
which made up the bottom 10 
in the ranking s. Also at risk 
were the broad-based, medium- 
size life offices that try to be 
all thing s to all men - and, in 
practice, do nothing very well 


Evasion — or 
avoidance? 


We have a deposit account 
with an English building soci- 
ety on the Isle of Man, primar- 
ily to receive interest before 
tax is deducted. Would it be 
legal - that is, tax avoidance 
rather than tax evasion - if, 
when the interest was due. we 
travelled to the island, with- 
drew the Interest and spent 
the money there? And would 
we need to declare the amount 
of interest spent on our next 
tax return? 

■ You forgot to tell us where 
you and your husband are 
domiciled. If, as well as being 
resident and ordinarily resi- 
dent in the UK, you and your 
husband are domiciled in 
En gland and Wales (or in Scot- 
land or in Northern Ireland), 
then you are liable to pay UK 
tax on the Manx interest 
regardless of whether or not tt 
is remitted to the mainland 

On the other band. If (despite 
being resident and ordinarily 
resident in the UK) you and 
your husband are domiciled 
somewhere else, you would not 
have to pay UK tax on the 
interest 

Setting losses 
against income 

Some time ago in the FT, I 
read an article saying that 
losses in private managed 
companies can be set against 
income. My accountant says it 
does not apply to offshore 
trusts. Is he comet? 

■ The article you read was 
talking about sections 573 to 
576 of the Income and Corpora- 
tion Taxes Act 1988. To satisfy 
yourself that your accountant 
is right, go to a local reference 
library and look up these pro- 
visions in one of the multi-vol- 
ume tax works, such as the 
British Tax Encyclopedia. 

Credit can be 
reclaimed 

I hold some shares on behalf 
of a four-year-old grand- 
daughter in National Power 


and Powergen. 1. Is it possible 
for the tax credit to be 
reclaimed ou the dividends? 2. 
Can tbe dividends be re-in- 
vested automatically? 

■ l. Yes. Tbe child's parents 
(or other legal guardians) 
should write to their local tax 
office for a claim form, which 
they must complete and sign 
on the child's behalf. 2. Ask 
each of the companies if they 
operate such a scheme for their 
shareholders. 

I trust my 
broker, but... 

I hold a small portfolio of 
shares registered in my name. 
Following recent shortening of 
the period for settlement after 
any share transaction, it 
appears sensible to follow my 
broker’s recommendation that 
my holdings be transferred to 
a nominee account registered 
at tbe address of his employer 
(an associate company of a 
European bank). 

To effect this change, I was 
sent a bundle of stock transfer 
forms for my signature with 
the broker’s assurance, as fol- 
lows: “I confirm tbat the 
transfer of your securities into 
...nominees will not affect the 
beneficial ownership. Each 
valuation that we send yon 
will include a list of those 
stocks which are owned by 
you, held to your order in our 
nominee company.” 

I have complete trust in tbe 
integrity of my broker. But is 
this informal statement of my 
interest all that I should 
require as a reasonable but 
prudent investor? 

■ The broker is correct that a 
transfer of your securities into 
a nominee name will not affect 



No toga nspcm&mr can JM aocqiM £y mo 
firunouf ftres tor ms answers n mtea 
cojUms. ai hguHw we to enswwwr By post «s 
soon as paxi*t 


the beneficial ownership. The 
legal ownership of tbe shares 
is held by the nominee com- 
pany in trust for yourself, and 
it has all the obligations and 
fiductary responsibilities of 
trustees towards you. 

You have, it appears, already 
assured yourself of the integ- 
rity and company standing of 
your broker. You might be 
interested to acquire the book- 
let entitled Self Defence for 
Investors. This is available free 
on request from the Securities 
and Investment Board at Gav- 
relle House, 2-14 Bunhill Row, 
London EC1Y SRA. tel: 071-638 
1240. (Murray Johnstone Per- 
sonal Asset Management). 

No answer 
from Revenue 

I have been trying for some 
time to get a satisfactory 
answer from both my wife's 
and my tax office to the fol- 
lowing question: “With the 
introduction and expansion of 
the 20 per cent tax band, why 
does tbe Inland Revenue stiU 
expect employers to deduct tax 
at 25 per cent for ad hoc 
work?" 

Surely, someone who Is not 
going to work regularly 


should be taxed at the lowest 
band - ie, 20 per cent? 

■ Questions of Revenue policy 
are outside the scope of local 
tax offices. Send your question 
to tbe Controller, Inland Reve- 
nue. Insurance and Specialist 
Division (Schedule Et. 550 
Streetbrook Road, Solihull. 
West Midlands B91 lQU 

Better deal 
on insurance 

Soon after buying a new car 
recently, I discovered my 
insurance broker had not 
offered me a very good deal: 
other firms offered better 
motor policies for around £50 
less. I asked him if I could 
cancel my existing policy, get 
a pro-rata refund and change 
to a better company. 

I was told I would get a 
refund equivalent only to my 
paying about £50 for just one 
month’s insurance. I asked for 
confirmation and was told the 
company would not quote an 
exact figure until 1 had com- 
mitted myself to cancelling the 
policy. Is the company wrong 
by refusing to say what the 
refund would be until I have 
committed myself? 

■ It appears you are paying 
tbe penalty of trying to cancel 
a policy very soon after its ini- 
tiation. The company incurred 
administration costs in setting 
up the policy for your new car, 
and it would be difficult for it 
to quote an exact refund figure 
until you had given it a spe- 
cific date and confirmation. 

We feel sure, however, that if 
you apply to the company, you 
will be able to get an accurate 
estimate of the costs involved. 

Shares are 
worthless 

Same years ago. I bought a 
few shares in Resort Hotels 
but I suspect tbey are now 
worth nothing. Is this the 
case? 

■ Yes. The shares were 
suspended on July 16 this year. 


What other 
PEP offers 

all this? 


The initial charge on the Schroder PEP has been reduced to 3% - 
now it will cost you less to invest in your PEP. There are no 
additional charges for unit trust PEPs apart from the normal 
unit trust annual charges. And there are no exit charges. 



FUOT 

PERFORMANCE^ 

POSTTTOHIN SECTOR " 

. Schroder. j UK- Enterprise Fund** . 


isf 

Schroder UK Equity Fuod* - 

+3265% rj. j - 


Schroder Income Fund? '* . ' 


.lst"ayf : of8'/; /$£ Y 

Schroder Smaller Companies Fund* -. : 

+1015%. ' .V vh'. 



There is no initial charge if you transfer any existing PEPs to Schroders. 


Our aim is to continue to provide you with consistently high returns. As one 
of the UK's largest investment management companies with over £50bn 
under management globally, we have the resources necessary to make well 
researched stock decisions across our wide range of PEP funds. To request a 
brochure giving full information on the Schroder PEP, please return the 
coupon below. Alternatively, call us on 

0800 002 OOO 

To: Schroder Investment Management Limited. 0071 1 FREEPOST, London EC4B4AX. 

Please send me my copy of the Schroder PEP information pack O and information on free transfers. □ 

| Name: 

■ Address: 

■ Postcode 

I Past performance is not necessarily a guide to the future. The value of investments and the income from them may | 

fluctuate and cannot be guaranteed und investors may not get back the amount originally invested. Tax concessions I 

■ are subject to statutory change. The value of any tax relief depends on personal circumstances. Schroder Investment ■ 
I Management Limited is a member of IMRO. Head Office and Registered Office; 33 Gutter Lane. London EC2V 8AS. | 

“Source: Micro pa I olTer to bid with gross income reinvested since launch to 22/08/94. UK Enterprise Fund from Qi/08/68 and 
from 01/08/89 + 102%. I/I J6: Smaller Companies Fund from 01/06/79 and from 01/08/89 +14.4%. 30/52; Income and UK 
Equity Funds from 03/01/72 tihe earliest date for which Micropal figures are available} and from 01/08/89 +68.3%. 8/94 and 
+74. t%. 1/80 respectively. 



Schroders 

Schroder Investment Management 


Misplaced confidence 


A surprising faith in the 
government’s generosity has 
been revealed by a telephone 
poll seeking people's views 
about the payment of mort- 
gage interest relief for people 
who have been made redun- 
dant Just over one in three 
think the government will pay 
all the interest from day one. 
In fact, it will do so only after 
16 weeks. 

The poll, conducted by Audi- 
ence Selection, was commis- 
sioned by Alliance & Leicester 
building society which, until 
November 12. is offering a 
year's free unemployment 
insurance with its fixed rate 


or discounted mortgages. In 
the case of a joint mortgage, 
the insurance pays half the 
amount if one borrower 
becomes redundant. 

More generally, however, 
the poll comes against a back- 
ground of lobbying by mort- 
gage lenders to try to prevent 
the government curtailing 
mortgage interest payments 
for people on income support 
Already, the payments are not 
available for loans above 
£125,000, or for people with 
more than £8,000 savings. 

■ There were more mortgage 
rate announcements this 
week. Woolwich has increased 


its standard variable rate by 
0.35 of a percentage point to 
8.1 per cent the same as tbe 
Halifax. Midland, National 
Westminster and Lloyds bank 
are all moving to 8.1 and join 
Barclays bank, which made its 
announcement earlier. 

Variable rates at Scottish 
banks are better - the Royal 
Rank of Scotland has passed 
on the fnll half percentage 
point increase but its standard 
variable rate is now 7.99 per 
cent Bank of Scotland also 
moves to 7.99 per cent ou Mon- 
day from 7.64 per cent 

Alison Smith 


HIGHEST RATES FOR YOUR MONEY 




Notice/ 

MWmum 

Rate 

kit. 


Account 

Telephone 

term 

deposit 

% 

paM 

DISTANT ACCESS A/ca 

Portmoi BS 

Instant Access 

0202 292444 

Instent 

£500 

5.00% 

Yly 

Manchester BS 

Money-ty-Mal 

061 834 9465 

Postal 

£1.000 

5.80% 

Yly 

Skipton BS 

3 High Street 

0756 700511 

Instant 

£2.000 

6.10% 

Yfy 

Northern Rock BS 

Go Direct 

0500 505000 

Instant 

£20000 

6.50% 

Yly 

NOTICE A/es and BONDS 

Bradford & Bngfcy 

Direct Notice 

0345 248248 

30Day<P> 

£1000 

6.00% 

Yiy 

Northern Bock BS 

Postal 60 

0500 505000 

80Day(P) 

£10.000 

6.75% 

Yly 

Universal BS 

1 Yr Ugh Option 

091 232 0973 

90Day 

£10.000 

6.00% 

Yly 

Coventry BS 

Rxed Rate Bond 

0800 128125 

31.837 

£3000 

B.1096F 

Yly 

MONTHLY INTEREST 

Britannia BS 

Capital Trust 

0538 391741 

Postal 

£2.000 

5.37% 

Miy 

Bradford 4 Bing ley BS 

Direct Notice 

0345 248248 

30Day(P) 

£10,000 

&30% 

Mty 

Northern Rock BS 

Postal 60 

0500 505000 

60 Day 

£2500 

6.15% 

Mty 

Coventry BS 

Fixed Rate Bond 

0800 128125 

31.897 

£5,000 

a?o%F 

Miy 

TESSAs (Tax Frw*) 

Market Hertwrough BS 


0858 463244 

5 Year 

£9,000 

7.60% 

Yly 

Cheshire BS 


0800 243278 

5 Year 

El 

7.40% 

YY 

Hinckley & Rugby BS 


0455 2S1234 

5 Year 

£3,000 A 

7.35% 

Yly 

Hoimesdale BS 


0737 245716 

5 Year 

£1 

7.15% 

Yly 

HIGH mtSIEST CHEQUE AJca (Gross) 

Wootwtch BS 

Current 

0800 400900 

Instant 

£500 

3^0% 

Yiy 

HaHax BS 

Asset Reserve 

0422 335333 

Instant 

£5.000 

■1-50% 

Qty 

Chelsea BS 

Classic Postal 

0800 717515 

Instant 

£2.500 

5.75% 

Yiy 





£25.000 

6.00% 

Yly 

OFFSHORE ACCOUNTS (Gross) 

Woolwich Guernsey Ud 

International 

0481 715735 

instant 

£500 

5.75% 

Yty 

Portman Channel Islands 

Gold Plus 

0481 622747 

90 Day 

£20,000 

6.65% 

Yly 

Yorkshire Guernsey Ltd 

O'shoie Key Ex 

0481 710150 

180 Day 

£50.000 

7.00% 

Yty 

Halifax BS 

Fixed Rate 

0534 58840 

5 Year 

00.000 

8.60WF 

Yly 

CWABAHTBED HtCOtE BONDS (Not) 

AJG Lila 


081 880 7172 

l Year 

£20.000 

5.60%F 

Yly 

A1G life 


081 680 7172 

2 Year 

£20.000 

6.40%F 

Yty 

General Portfolio 


0279 462839 

3 Year 

£20.000 

6.90%F 

Yiy 

General Portfofo 


0279 462839 

4 Year 

£5.000 

7.00%F 

Yly 

EuroHe 


071-454 0105 

5 Year 

£10,000 

7.75HF 

Yiy 

NATIONAL SAVINGS A/Cm A BOWS (dress) 


Investment A/C 


1 Month 

£20 

5.25%G 

Yly 


Income Bonds 


3 Month 

£2.000 

6 50%H 

Miy 


Capita) Bond3 1 


5 Yea 

£100 

7.75%F 

OM 


First Option Bond 


12 Month 

£1.000 

6.40% FI 

viy 


Pensioners GIB 2 


5 Year 

csoo 

7.50%F 

My 

NAT SAVINGS CERTIFICATES (Tax FreeJ 


42nd issue 


5 Year 

£100 

5.85%F 

0M 


8th Index Linked 


5 Year 

£100 

3.00WF 

OM 






■Unfln 



Childrens Bond G 


5 Year 

£25 

7.85%F 

OM 


This table covers major banks and Building Societies only. All rates (except those under heading Guaranteed Income 
Bonds) are shown Gross. F - Fixed Rate (AD other rates are variable) OM = Interest paid on maturity. N= Net Rote. P» 
By A = Feeder account al3o required. G*> 5.75 per cent on CSQO: S per cent on £25.000 and above. H= 6.75 

per cent on £25,000 and above. 1= 6.80 per cant on £20.000 and above. Source: MONEYFACTS, The Monthly Guide 
to investment and Mortgage Rates, Laundry Loke, North Watoham. Norfolk, NR28 OBD. Readers cai obtain an 
Introductory copy by phoning 0692 500665. Figures compiled on: 29 September 1994 


Who said your 
business can't 
have free banking 

and earn 4.00% 

grass pa.? 

Cafl 071-203 1550 during office hours or 24 hour Hne 071 -626 0879 



You can have 60 free 
transactions per month, 
and earn a high interest 
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ALLIED TRUST 
BANK -±=rz^ 

C*n*i Bridge IS. HJI. t.wdnn fl'lH tAl 




( 


I. 






FINANCIAL times WEEKEND OCTOBER 1 /OCTOBER 


2 1994 


WEEKEND FT IX 


■’ -I !*„ 


PERSPECTIVES 


'V’lfo 


. .s 


i cl one; 


T he idiosyncratic 
stonemasons' yard at 
Lloyds of Great Bed- 
wyn. near Marl- 
boro ugb, Wiltshire has been an 
irresistible lure for generations 
of children from the village 
school next door. 

"Press the button and the 
fountain will work,” says the 
ageing hand-cut plaque 
attached to a statue of a greek 
goddess that stands precari- 
ously on the front wall 
It still does work. Follow the 
Instructions and a huge and 
noisy plume of water caspadps 
from a giant um at the rear of 
the yard, which also houses a 
bewildering array of items, 
from Chinese granite lions to 
teddy bear headstones, medi- 
eval-style carved grotesque 
heads, and a scaled-down stone 
replica of a Sopwith Camel 
first world war aircraft carved 
ss a memorial to an airman 
killed in 1917. 

All the “exhibits” in the yard 
are of stone, as are the 100 or 
so plaques and inscriptions in 
the collection attached to the 
side of the Victorian brick 
headquarters of the five-man 
company. 

They have been collected by 
members of the seven genera- 
tions of Lloyd who have run 
the family business, and pass- 
ers-by are welcome to drop in 
and view the collection. 

One might reasonably think 
such an established enterprise 
serving a wide area with items 
from churchyard memorials to 
marble bathrooms, floors, 
worktops, fireplaces and stone 
garden ornaments, would be as 
solid as the B ank of England. 
Yet two years ago the business 
came as close to collapse as it 
has in 204 years of existence. 

John Lloyd, 3$, who took 
over the reins from his father 
Ben 12 years ago, is still paying 
the price for a brief collabora- 
tion with an old friend that 
lasted two years and had dam- 
aging effects on his original 
business. 

“Despite the onset of the 
recession in the late 1980s we 
were doing really well I had a 
staff of five, plus a secretary, 
and we were turning over 
£250,000,” said Lloyd. 

“We were having to work 
harder for our money than we 
did in the boom of the mid-SOs, 
but life was varied and enjoy- 
able. and there was no short- 
age of work. Including a num- 
ber of lucrative marble fitting 
jobs in London. 

“We had managed to keep up 
with mechanisation, and there 
was still a healthy demand for 
the high quality hand letter 
cutting in which we fiave 
always specialised. However 
with the increase in demand 
for marble work I thought it 
would be a good idea to join up 
with an old Wend who was dis- 
illusioned with his job working 
for a major marble importer, 
and form a new enterprise 
importing and wholesaling all 
forms of marble. 

“We ran the business as a 
separate entity from here. The 
first mistake I made was to 
resolve to draw no salary from 
the new business, believing, in 
my naivety, that it would pay 
me back later. 

*' After 12 months 1 was 
aware that 1 was putting tbree- 
and-a-half days a week into the 
new venture and the masonry 
business was suffering. 

"Almost before I realised it 
the family business had built 
up an overdraft of £40,000 - we 



FT Ski Expedition /Arnie Wilson 

The pre-war 
experience 


Arnie Wilson and Lucy Dicker 
are attempting to ski every day 
of 1994 on a round-the-world 
expedition. They are currently 
exploring the mountains of New 
Zealand 


L ast time anyone told 
me not to be afraid 
was 10 years ago 
when an instructor, 
Daniel Hansjacob. was about to 
take me down my first couloir 
in Val dTsfcre. This time it was 
Arthur Tschepp, a 67-year-old 
Serbo-Croat and he was reas- 
suring us about the hair-rais- 
ing drive (reminiscent of some 
of our journeys in the Andes 
and Himalayas) to Awaklno. 
New Zealand, in his ancient 
Land Rover. 

Tschepp who learnt to ski on 
barrel staves in the bills above 
Zagreb (where he also diced 
with death with the tr ams by 
tobogganing in the streets 
using ice skates to steer) is 
patron of Awakino club field, 
with the smallest membership 
in New Zealand (200). 

He is also the latest member 
of New Zealand's One Ski In 
the Grave Club (open to 55r 
year-olds and over). 

The Land Rover, made in 
1950 and brought from Britain 
to New Zealand in the 1970s by 
a visiting Maori, makes a noise 
like a tug-boat. “It was per- 
fectly all right until some 
hoodlums out possum shooting 
shot through the windscreen, 
and stole the carburettor, bat- 
tery and drive shaft," 
explained Tschepp. 

“I managed to make a new 
drive shaft by cutting down an 
old one from a standard van- 
guard, and 1 cannibalised three 
carburettors to make a new 
one.” 

Arthur knows a thing or two 
about cannibals. He worked 
with them In Papua New 
Guinea in 1954, clearing up the 
havoc after 3,000 people were 
killed when Mount Leamington 
erupted. “I can work with can- 
nibals. They are much less dif- 
ficult than some of today’s 
teenagers.” 

By now we have reached the 
Awakino ski lodge. Even 


Faces from the past John Uoyd with worfcs from the collection buBt up by the seven generations who have run the family | 


Costly chip 


Minding Your Own Business 

in off an old block 


Clive Fewins visits a family stonemasons which nearly cracked after 200 years 


had never owed anything like ■ 
that before - and the bank was 
getting uneasy. My neglect of 
the family business meant that 
the work volume dropped 
because I was putting in less 
time and thought into gaining 
the all-important small jobs 
that traditionally grew out of 
bigger contracts. 

“Further, having realised 
what was going on 1 was far 
too slow to act By the time I 
stood firm, things were so bad 
that my main business was on 
the point of foundering. 

“The family firm had been 
landlord to the other enter- 
prise, and was also bearing 
nearly all the overheads and 
even supplying some of the 
staff, it was therefore no sur- 
prise that file new venture was 
making money at the expense 
of the older one, and also suck- 
ing the lift blood out of it" 


B y the time Lloyd 
decided to cut his 
losses and get out, 
the stonemasonry 
business was turning over less 
than £100.000. 

He sold his share of the new 
business for £30.000 and heaved 
a sigh of relief. He estimates 
that, altogether, lost earnings, 
additional overheads and pay- 
ments for the redundancies 
that followed the episode cost 
him nearly £100,000. 

"It was a very low period. I 
felt 1 had been a total fool and 
this hit very hard. 


"But now, two years after it 
all came to an end, I realise 
that the episode made me look 
hard at things and determine 
to improve our ways of doing 
business, n Uoyd said. 

Fortunately there was a 
white knight waiting in the 
wings. Charles Webb, the 
father of Lloyd's long-time girl- 
friend had recently retired 
from running a water manage- 
ment system company, and he 
immediately set about trying 
to right things. 

Lloyd had the unpleasant 
task of making two long-serv- 
ing employees redundant, thus 
reducing the male workforce to 
three plus himself, and then 
carrying out a full stock check 
at Webb’s insistence. Webb 
also persuaded him to sell sur- 
plus unwanted stock and end 
his time-honoured practice of 
buying small pieces of stone he 
liked the look of when visiting 
a wholesaler because he 
thought they would be useful 
additions to his stock. 

Webb also insisted that the 
huge collection of statuary and 
stone artefacts outside should 
he made the personal posses- 
sion of Lloyd so that if the 
business foundered it might 
not have to be sold. He also 
introduced computers - which 
Uoyd still loathes - cash flow 
projections, and a new 
accounting system. He gave - 
and still gives - his spare-time 
services free of charge. 

The result was that last year 


Wonder of the age 


Con tinned from Page T 

many people a century from 
now will look at them in awe 
and regard or consider the 
1990s as an age of Titans. None 
compares to the Eiffel Tower 
in terms of pretension, or the 
Statue of Liberty in terms of 
moral statement. None will 
take its place as a Wonder of 
the World. 

Oddly the most ambitious 
millennium project announced 
to date, the £l50m Albertopolis 
plan for a regenerated museum 
village in South Kensington, 
looks like an early casualty, 
with one important participant 
hiving off to do its own thing, 
a pedestrian piazza linking the 
Hall with the Albert Memorial. 
Along with the London opera 
houses and museums. Albert o- 
polis Is likely to lose out to 
such regional ventures as a 
rehabilitated flour mill in 
Gateshead, which aims to be 
the contemporary art centre of 
the north east or the Lowry 
Museum in Lancashire; or the 
proposed National Gallery' of 
Scottish art. 

Here again there is nothing 
of real splendour. Anyone con- 
templating a giant platinum 
pyramid, an awesome bridge, 
or an inter-denominational 
cathedral-mosque, had better 
get their designs on paper 
quickly. 

The commissioners are not 
really worried about the capi- 
tal projects - they feel they 
will emerge inexorably, even u 
they are not quite as spell- 
binding as they would wish. 
What concerns them, and per- 
haps the government, is engvn- 
deling a feel-good factor in the 
public. They arc touring the 
country, touting ideas from 


local worthies. John Major 
came up with one last month - 
a computer in every village 
ball in the land. 

These meetings cause prob- 
lems. The commissioners can- 
not solicit applications: they 
can only offer guidelines. Most 
people, if asked how they 
would spend £12bn (the com- 
missioners are not yet accept- 
ing that the lottery will give 
them £1.6bn: they are probably 
holding back £4O0m for a grand 
finale in 2000), would say 
“devote it to cancer research, 
or at least arthritis" or “pro- 
vide nursery schooling for all" 
or “modernise the transport 
system”. But millennium 
money cannot be spent on 
areas where the government is 
already financially committed. 
Hence the hunt for brilliant 
new ideas. 


T he environment is 
certainly in favour - 
plans to replant the 
Caledonian Pine For- 
est in the Scottish Highlands, 
and to create parklands in der- 
elict inner cities, have a win- 
ning look. Technology is an 
acceptable buzz word, and net- 
works of local science centres, 
like that in the Smithsonian In 
Washington, stand a chance. 
Bursaries for foreign travel 
and education on the lines of 
the Rhodes Scholarships are 
obvious contenders. 

But what the commissioners 
would really like is a 
mind-blowing grand idea - like 
the Open University. They 
might have to settle for hun- 
dreds of small ones. This vil- 
lage might get a clock; that a 
communal green. Certainly the 
aim is to spread the money 
around the land, especially if 


local community groups join in 
with their time, labour and 
perhaps a little cash. 

Disused railway tracks might 
be brought back to life; canals 
might be put back into use; 
Stonehenge might be turned 
into a national park; the High- 
lands might get a university; 
retreats for artists and writers 
and mu si dans might dot the 
land. The greening of Britain, 
with the planting of millions of 
trees, may capture the public 
mood. The imagination is 
encouraged to run riot. 

The commissioners need 
help. Without the input of the 
people more and more of the 
cash might be siphoned off on 
the grand proposals just 
because they can afford consul- 
tants and influential appeal 
raisers and are ready to start. 
This is the opportunity for the 
common man to improve bis 
quality of life. 

The commissioners will look 
more kindly on plans to 
improve existence in Derry 
rather than London. They 
want to reach the people and 
places which have been left 
behind in recent years. They 
want to improve the image of 
the nation now to future gener- 
ations. Ideally, people in 2094 
should be benefiting from the 
expenditure of the next five 
years. 

The FT is playing its part by 
asking its readers for their sug- 
gestions. They must look for- 
ward to the next century and 
beyond, although no doubt the 
millennium will also be used 
for a stock taking of the past, a 
modern Domesday survey of 
Great Britain in the year 2000. 
The best ideas will receive 
prizes, although not to the 
value of £l.6bn. 


after nearly two years of fore- 
going a salary and living off 
savings, Uoyd was able to 
start paying himself again. 
This year the overdraft slowly 
began to drop and he is think- 
ing of taking on a trainee to 
join his three other men. 

“Turnover this year should 
be about £120,000 and I am hop- 
ing we shall show a profit of a 
few hundred pounds, 1 * Uoyd 
said. 

*T have learned a lot - par- 
ticularly the wisdom of draw- 
ing up a full legal agreement 
before entering into an part- 


nership, even if it is with an 
old friend. 

“However, the one thing I 
wont do is give up my led- 
gers," he said. “The firm has a 
collection of written records 
going back to 1800 and I can 
easily open a ledger and look 
up details of jobs going back as 
much as 70 years. 

“This can be very useful. 
Only a few months ago I bad a 
chap come in who seemed very 
grand. He wanted a memorial, 
and baulked at paying a 
deposit, saying his family had 
traded with us for several gen- 


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erations. though he admitted 
they hadn’t used us since the 
1950s. 

“We sat together and 
thumbed back through the led- 
ger until we found the record 
of the job, 40 years ago. A neat 
note on the bottom of the entry 
in my grandfather's handwrit- 
ing stated that these customers 
were slow to pay. The point 
was taken. Nothing was said, 
but he gave me a deposit” 

■ Uoyd of Bedwyn, 91 Church 
St, Gt Bedwyn. Marlborough, 
Wilts SNS 3PF. Tet 0672470234 


Tschepp admits it is basic. But 
he is such a gem we do not 
mind. 

It is so cold that Lucy and I 
climb into our borrowed sleep 
mg bags still wearing our cold- 
weather Degre ski suits. Out- 
side, in this rarefied atmo- 
sphere the stars sparkle like a 
milli on snow crystals. 

This, it occurs to me. is a 
skiing time warp. We are 
experiencing pre-war skiing it 
is still happening today in New 
Zealand’s club fields. 

On our bedroom wall is an 
account of a skiing trip by chil- 
dren from Otematata School. 
Choice highlights include: 
“The ski instructors kissed us 
all goodnight <yuk!)" and “We 
all liked the times Mr Gulliver 
and Mr Gray fell over”. 

It is so cold that 
Lucy and I climb 
into our sleeping 
bags still wearing 
our ski suits' 


Lucy and I sympathised with 
Mr Gulliver and Mr Gray. We 
just could not get on with the 
“nut-cracker” devices used to 
attach yourself to the tractor- 
driven rope tows. (There are 
four at Awakino; Access. 
Ridge, Main and Learners.) 

1 suffered quite a nasty rope- 
bum during my first attempt, 
and when we both finally got 
to the top of the mountain, 
snow conditions were among 
the most difficult we had expe- 
rienced in almost 200 ski 
resorts. 

It was the moment of truth 
for us as we started our tour of 
New Zealand's club fields. Like 
many of them, Awakino has no 
grooming. If we were clumsy 
in our attempts to get up, we 
were inglorious in our 
attempts to ski down. 

“I guess this is just what it 
must have been like between 
the wars in the Alps,” I said to 
Lucy. “Tm glad it's not like 
that any more," she said. 


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FINANCIAL TIMES WEEKEND OCTOBER 1/OCTOBER 2 1994 





HACKETT 

LONDON 



Essential 
British Kit 

1.17- IJX SLOANE STREET 
LONDON SWf 
n7l-7.li> 3331 

IbRMYN STREET 
FULHAM AND THE CITY 



Natural life in Deccieland 

Lucia van der Post surveys the latest trends in interior design 


D omestic interior 
design, like all the 
unspoken languages 
that are part of our 
social fabric, is sub- 
ject to the whims of fashion, but the 
time-scale is happily much slower 
than in the world of frocks. 

Few of us have the time, the 
energy or the money to change our 
houses or our interiors as frequently 
as we do our clothes and anyway it 
usually takes many years to put a 
home together. 

Nevertheless, it is clear that a 
fresher, cleaner, lighter approach to 
the domestic interior is emerging. 
Last week at Deco rex, Deccieland' s 


equivalent of the Paris catwalk 
shows and the event that no interior 
designer worth her chintz dare miss, 
all the new trends were on view. 

The show itself grows better and 
better - displays and room settings 
are beautifully organised and full of 
inspiration for those looking for 
fresh Ideas - so it is a great pity that 
last year’s attempt to allow the pub- 


lic in has not been followed up this 
year, instead, the ideas will have to 
be filtered through the trade repre- 
sentatives who alone were allowed 
into the hallowed halls. 

For those who are nervous of 
speaking to interior designers, fear- 
ful that they are going to be per- 
suaded to spend large sums of 
money on bizarre obelisks and pecu- 


liar tassels, the Interior and Decora- 
tors and Designers Association is 
there to help. 

The IDDA offers lots of advice on 
how to get the best from interior 
designers, what they can and should 
not be expected to do and how to 
look after the costs. Its free leaflet is 
called Why You Should Use an Inte- 
rior Designer (write to IDDA, Crest 


House, 102-104 Church Road, Ted- 
dington, Middlesex TW11 SPY or tei. 
081-977 1105). 

If you have an empty room and 
cannot wait to know what to do with 
it, I asked two interior designers, 
Jennifer Sisson of JFS Design, Brun- 
rifch. Suffolk and Lavinia Dargie of 
Dargle Lewis Designs, London SW6 
for their views. 


They spoke almost as one: natural 
is in. Jute, linen, cotton, silk are the 
“in" fabrics. Jute and sisal come in 
floor coverings (nothing new) but 
also in fringes and tie-backs. Out go 
frou-frou window treatments and an 
over-abundance of paint effects. In 
come shutters, simple blinds and a 
more tailored took for curtains. 

Traditional paint colours are very 
in. Those with little to spend can 
cool down and simplify the interior 
by re-covering cushions in pale neu- 
tral colours, and using throws to 
change the mood of sofas and chairs 
instead of going to the expense of 
reupholstery. Above all. if in doubt, 
keep it simple. 



Maryse Boxer at her own dining table. 
The large lay or serving plates with a 
richly-coloured inlaid majolica pattern 
round the edge are her Ballet Russe 
collection - small versions start at £19, 
the large ones are £85, The smaller 
plates in pink, green, blue or clear 


edged with an intricate gold pattern are 
£20 each. The crinkly napkins are 
£17.95, straight glasses with gold 
embellishments, £10 each. The double 
gold-plated holder with glasses which 
can be used for champagne, candles or 
flowers are £125 each. 


At the end of the table are three 
cast-iron trivets holding glass flutes 
used as vases for the flowers. Prices of 
the trivets with the flutes are £75, £85 
and £95, depending upon the height All 
from Chez Joseph, 28 Sloane Street, 
London SW1. 


Serve a touch of creativity at your table 


M aryse Boxer is a 
designer who has 
brought all her 
talents to bear 
on a small but fascinating area 
of domestic life - the table top. 
Originally a textile designer in 
France (T was working with 


Cacharel in his heyday") she 
then produced the colours for 
Dior's first cosmetic line, but 
all the while she loved collect- 
ing china and playing with 
table settings, writes Lucia van 
der Post. 

When her husband's work 


brought her to London she 
started experimenting with her 
ideas for tableware. “In the US 
there was a cheap and cheerful 
range of tableware called Fies- 
ta ware which came in lots of 
different colours and you could 
play around with different 
combinations and that was 
when I began to think about 
doing a range of my own." 

To begin with she made mod- 
ules in cardboard, playing with 
light shape and texture - she 
would see how a matt small 
plate set off the contrasting 
gloss of a shiny one, how a 
round plate set on a bigger 
curvy one could enhance the 
interest in both and how a 
smooth finish would provide a 
rich contrast with a rough one. 
She began to see the table as a 
creative outlet for every wom- 
an's domestic talents. 

From having an original idea 
to a saleable product is usually 
a long and difficult step but 
when Joseph Ettedgui, the 
retailer behind the Joseph 
empire, said he wanted her to 
do a black and white collection 
for Joe's Cate in Draycott Place 
which he was about to open, 
Boxer was off. 

“I knew nothing about ceram- 


ics - I had just fiddled about 
with these ideas on bits of 
cardboard but Joseph did not 
want to know anything about 
my manufacturing problems. I 
was on my own. It bad to be 
ready for the opening and it 
was. Joseph started selling the 
range in bis shop Pour La Mai- 
son. Barney’s in New York saw 
it and wanted it. Then The 
Conran Shop and so on.” 

After her minimalistic black 
and white range for Joseph she 
did Rainbowware - a bril- 
liantly coloured range of cups 
on leaf-shaped saucers offering 
a huge variety of colour combi- 
nations - for Aroma Caf£. The 
trendy crowd who drink Aro- 
ma’s coffee can buy the ceram- 
ics when they finish. 

Since then her range has 
expanded to take in glass - 
champagne flutes which dou- 
ble as vases or candle-holders 
and drinking glasses and pale 
coloured plates, some of it 
made in Italy and embellished 
with gold-leaf. Then there are 
napkins - crinkled linen and 
polyester, completely washable 
and needing no ironing - and 
cups and saucers and plates of 
every size and in every mood. 

Her main aim is to offer her 
customers choices. “I wasn’t 
interested in designing just a 
glass. I wanted everything to 
be multi-media and multi-duty 
so that the table can be as per- 
sonal and as creative a 
medium as the clothes that 
people wear. Everything I do is 
always hand-finished so that 
they are all slightly different 
That is what gives the pieces 
life." 

From this week the whole 
range of her wares can be seen 
in the basement of Chez 
Joseph. 26 Sloane Street, Lon- 
don SWl where she shares the 
space with the furniture 
designer Carolyn Quarter- 
maine. 


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IKEA remakes Swedish history 



The Swnaksund sofa, a replica of an original late 18th century piece, £1.250 



Hie Sturehov chandelier, based a 17th century version, is made from 
solid podahed brass and glass, price £350 


F or those of us accus- 
tomed to thinking of 
Area as that nice inex- 
pensive Swedish oper- 
ation that would sell us some 
bargain-priced household furni- 
ture and accessories if only we 
could find the place, it is some- 
thing of a turn-up to discover 
that it is selling elegant copies 
of 18th century Swedish furni- 
ture. Ikea has traditionally 
been regarded as that paragon 
of Scandinavian contemporary 
chic, so democratic, so respect- 
ful of the taste of the the 
masses. The notion of it deal- 
ing in reproduction furniture Is 
enough to send one scurrying 
to see what it is all about 
What we find is an instruc- 
tive example of how reproduc- 
tion furniture has become 
entirely rehabilitated by the 
taste police. Not, of course, any 
old reproduction and certainly 
not what the late Sir Paul 
Reilly, the first director of the 
Design Council used to call 
“ruptured repro”, but repro- 
duction furniture that comes 
with proper history and what 
in these circles is referred to in 
a hushed voice as “authentic- 
ity". 

Some of us have never 
minded too much about 
authenticity, preferring to rely 
on something much more 
primitive such as do we like it? 
Would it look good in our 
house? Can we afford it? 

It has to be said that Ikea's 
selection of 18th century furni- 
ture, a style known as Gustav 
ian, passes almost all the tests. 
And it has “authenticity” as 
wefi. 

The hallmarks of the style 
are a simplicity which tunes in 
beautifully with the 1990s 
mood in furnishtngs - floors 
are stripped wood, furniture 
often of painted wood, the col- 
our scheme is restrained, rely- 
ing on muted blues, whites, 
greys and yellow for light Fab- 
rics are simple, often blue and 
white checks, simple cottons 
and muslins. 

The overwhelming impres- 
sion of the Gustavian interior 
is one of light, air and tranquil 
simplicity. The pieces Ikea has 
developed, in conjunction with 
the Swedish Central Board of 
National Antiquities, are the 
props that will bring this 
vision to life. 

Every piece was copied from 
one of the examples In a price- 
less collection of 18th century 
Swedish furniture in the old 
spa town of MedevL fts future 
was under threat because of 
lads of funding until Ikea and 
the Swedish Board of National 
Antiquities struck a deal. Ikea 
would safeguard the future of 
the collection it it were allowed 
to produce faithful copies of 
the originals. Each piece has 
been made by following the 
me thod s used by Swedish 
craftsmen of two centuries ago 
and using materials that are 
almost identical. 

For instance, hand-painted 
blue and white china is marfp 
in the same province of China 
as the original pieces from the 
same sort of clay. Glassware is 
mouth-blown and the results 
are so close to the or iginal that 
the reproduction glasses have 
had to be engraved to prevent 
them being confused with the 
originals. 

There is a wonderfully 
ornate and glittery chandelier, 
based on a 17th. century ver- 
sion that h angs In an upstairs 
room at Sturehov Manor out- 
side Stockholm. Then there are 
sofas, such as the one photo- 
graphed above, side tables, 
bookshelves and c hair ? 

Prices seem excellent for the 
quality on offer - the most 
expensive item is the Sven- 
skund soFa which is £1,250, 


while the chandelier is £350, 
the ladies' writing table is £320, 
the four-poster bed £920 (exclu- 
ding the mattress). Look out, 
too, for some hand-carved 
gilded mirrors, with or without 
sconces, at prices ranging from 
£59 to £295. 

It is only available at Ikea 
stores at Brent Park, Wembley 
and Pur ley Way, Croydon. 

A new book. The Swedish 
Room by Lars and Ursula SjOb- 


erg (published by Frances Lin- 
coln, £20), is a beautiful evoca- 
tion of that way of life. Here 
are uncluttered rooms, peace- 
ful, comfortable, frugal, yet ele- 
gant Light suffuses the spaces, 
well-proportioned houses are 
surrounded by quiet woods, 
unpolished pale floors gleam in 
the soft northern sunshine. It 
Is a visual feast for those who 
aspire to these gentle domestic 
interiors. 



Baume & Mercier 

GENEVE 

MAfTRES HORLOGERS DEPUIS 1830 



From leading jewellers throughout 
the United Kingdom or for your 
nearest stockist please call: 

Tel: 071 416 4160 
Fax: 071 416 4161 


< 



1. 


V. 









financial times weekend October i /October 2 


1994 


WEEK-END FT XL 


FASHION 


his?, 


= r 




Aii 


.V ' it » 



y ' - 



Style 


Me and My Wardrobe 

of the well-disguised writer 


P'.TT.fft?, ♦.* . ~T ■ 7f- 




Jane Mulvagh meets Harriet Sergeant who dresses so that she can see without being seen 


H an-let Sergeant’s 
clothes, like her 
word processor, are 
a tool not a play- 
thing. They serve a profes- 
sional purpose: to insinuate 
herself into communities in 
order to write about them. 
Whether she is moving 
through the black townships in 
South Africa, the waspish yup- 
pies of New York’s Upper East 
Side, or teenage gangsters in a 
Shanghai brothel, her clothes 
signal a wish to integrate. 

“The right clothes can help 
to get people to talk. If I am in 
a difficult situation,” she 
explains, “I dress so that peo- 
ple will help me. For instance 
in Soweto, where I was doing 
research for my book, I wore a 
conservative pleated skirt and 
pretty blouse with high shoes 
to inspire respect and, more 
importantly, to show them 
respect Shorts and a T-shirt 
would have sent a powerful 
message that you thought they 
were not good enough” 

There is an Intelligent mat- 
ter-of-factness in her approach. 
Like the spare style of her 
prose, her clothes efficiently 
communicate a message. 
“They are armour, to be used 
as a disguise or a confidence 
booster,” she says. 

Fitting in, socially and pro- 
fessionally, matters to Ser- 
geant, 39. Firm sartorial views 
would be an encumbrance 
when trying to assimilate the 
dress codes of far-off cultures. 
“You have to watch carefully," 
she says. “It takes about a year 
to understand the unspoken 
rules - and then I can adapt to 
that environment'’ 

Her latest hook. The Old Sow 
in the Back Room. An English 
Woman hi Japan, draws on her 
experience of living in Japan 
for seven years after her 
banker husband was sent there 
by his company. Putting aside 
her Em-opean notions of indi- 
vidualism, she submitted to 
their dress codes and was able 
to understand many levels of 
Japanese society. 

“In the east women dress to 


please men. In the west women 
often dress to please other 
women and many of the 
clothes are hated by men. Take 
Issey Miyake. Most of my 
women friends love it Stephen 
[her husband] can’t stand it!” 

She was astonished by the 
women in Tokyo who wore 
Chanel suits to play in sand- 
pits with their children. Ini- 
tially she rebelled, but the cul- 
tural pressure was 
overwhelming and the snappy 
suits in her wardrobe bear wit- 
ness to the fact that she con- 
formed. She drew the line at 
the “lady-like” Japanese taste 
for white lacy tights and white 
court shoes. 

The influence of Japan lin- 
gers. Her wardrobe reveals 
that she broadly adheres to 
fashion's diktats. The contents 
hang like entries in fashion's 
seven-year diary; sharp, short 
suits circa 1987; sovereign-sized 
diamante buttons fastening 
cream lace. 1989; Palio-print 
silk shirts and leggings, 1991 
and textured crinkles, 1993. 

She says; “The English dress 
codes are the most complicated 
because dressing down takes a 
great deal of effort In Japan 
we dressed up to go out Just as 
we do in New York. It’s fun. 
Here they look down on you if 
you’ve made an effort It's so 
boring on the eye.” 

Of her personal wardrobe, 
rather than her disguises, she 
admits to difficulties in putting 
a look together. Now, with a 
bigger budget she buys the 
whole designer outfit - “Miss 
Matching - that's me” - or asks 
friends to buy her clothes. She 
says you cannot find glamour 
in London shops. 

At crucial moments in her 
life - her first dance, first day 
at Vogue, or penniless and 
directionless on her return 
from South Africa - her 
mother gave her a confidence- 
boosting outfit; a Biba straw- 
berry pink mini dress; a smart, 
15-year-old Jean Muir dress, a 
leather jacket 

To Sergeant the secret is not 
what clothes make you look 



■nvcs 'knock ’wn dead’ Montana suit- ‘perfect far Tokyo hi the 80s, afl 
glamorous and glossy* 



like but feel like. “My mother 
would look at my face, not my 
body, and if it lit up and 1 
exuded confidence that was the 
right thing to wear. Most peo- 
ple don't notice what you have 
on, they only sense your mood. 
Take evening clothes. I use 
them like a whirlwind or a 
rocket behind me, whooshing 
me out of the door filled with 
confidence.” 

Her “booster” clothes 
include a pair of shockLog-pink 
kid gloves cuffed in black mar- 
abou feathers; a Bruce Oldfield 
suit and Montana suits with 
short skirts to celebrate the 
Sergeant legs. This Montana 
which I bought a few years ago 
was perfect for Tokyo in the 
80s - all glamorous and glossy. 
The cut makes me look slen- 
der.” 

Necessity has shifted the 
emphasis of Sergeant's ward- 
robe. “When I was younger and 
spent my day as a writer at my 
desk, I often stayed tn my 
dressing gown or kim ono until 
six in the evening. And then 
having suffered Lonely Woman 
Syndrome all day. I'd go out 
anti want to dazzle.” 

The big change was having 
children. Suddenly the bouse 



Harriet in Issey Miyake dress and 
jacket and 18th century 
Portuguese Jewellery. She paints 
the mote on her chin with koN 

was full of nannies a nd dailies 
and she had to get dressed. The 
other change was coming back 
to London last year. “Here 1 
have been into school runs, 
seeing publishers for lunch so I 
had to buy smar t day rfntfaw 
for the first time. I buy one 
outfit each season. Don’t take 
me out to lunch more than 
once or you’ll just see the same 
suit again and again!” 

By day she lives in Marks 


and Spencer’s gilt-buttoned 
blazers, brightly-patterned 
Gucci shirt and tailored trou- 
sers. “It’s my uniform. I do try 
to conform, but I always seem 
to get it wrong - something 
just slips in.” She gives the 
example of her “I-am-a- 
banker’s-wife” evening dress 
from Tomasz Starzewski, a 
black and white column with 
modest bugle heading at the 
neck. But instead of wearing 
predictable heirloom pearls 
and auntie's spray brooch or a 
success-proclaiming Bulgari 
necklace, she wears it with 
hub-cap sized African ivory 
and Indian silver bangles. 

Country clothes are absent 
from her wardrobe. Brought up 
in north London she admits to 
"thinking of the countryside as 
Hampstead Heath”. During her 
angst-ridden 20s she dated very 
English boys, alumnae of her 
Oxford days, who would take 
her to cold country houses. “I 
loathed it. Mud. cold, cystitis, 
the wrong clothes - trying to 
look sweet and pretty in puff- 
sleeved blouses!” 

Then she met Stephen 
Cohen, her husband who 
works at S.G. Warburg. He 
encouraged her to wear sexy 


shapes in dark colours instead 
of trying to look like an over- 
grown girlie. ‘It suits her 
psyche and she is happy. 

To her horror, after 11 years 
of marriage, Stephen is sug- 
gesting they move to the coun- 
try. To endure her “green hell" 
she has reluctantly bought 
what she archly calls a “Ber- 
ber” waxed jacket a knowing 
mispronunciation intended to 
communicate her irritation. 

Showing us her clothes. Ser- 
geant realised she kept them 
like letters. “They remind me 
of thing s that have happened 
and it is all rather moving. I 
met Stephen in that jacket.” 

As a chronicler of other cul- 
tures she is a person who looks 
out rather than in on herself 
When I encouraged her to 
examine her “wrappings”, she 
realised that she had not dis- 
sected them with the sharp eye 
she applies to the char acters in 
her books. She enjoyed the pro- 
cess - she says. 

■ The Old Sow In The Back 
Room, An English Woman In 
Japan is published on Sept IS. 
John Murray, £1799. 



Photographs: 

Meer 


Lydia van der 


Writer Harriet Sergeant <n a wedding kimono from 
her son Benedict 


her Tokyo days, with 


, I. M, ««* and Clumn - • --*■ 

, by Tomasz Starzewski. 


HOWARD HICKEY. 

BANK OF IRELAND 
Donegal tweed soil by DAKS £249. 
Cotton shirt £35 and tie £35, 
both made in Ireland. 








JOHN REID, 

MARKETING DIRECTOR, 
LONDON RECORDS 
Ink Meain blue alpaca cardigan £189 



Ireland T#»day 

A three week celebration of Ireland, the Irish and Irish 
design at Siinpson Piccadilly from 1st -22nd October. 
Discover men’s and womens collections from Ireland s 
leading designers, giftware, art exhibitions, food and 
fragrances. Oyster and Guinness Bar. 

FASHION SHOWS 

sponsored by Bank of Ireland. 

Wednesday 12th October: 1.00pm and 3.30pm. 

Thursday 13th October: 2.00pm. 4.00pm and 6.30pm. 
Saturday 15th October 1.00pm, 2.30pm and 4.00pm. 

To reserve your free seat apply now for a ticket 
by calling Freephone: 0800 282 188. 

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XII WEEKEND FT 


FINANCIAL TIMES WEEKEND OCTOBER 1/OCTOBER 2 1994 


★ 

FOOD AND DRINK 


The making of a vintage brew 

Giles MacDonogh travels to India to take tea — of the finest sort 


W hen the son 
breaks 
through the 
clouds you 
may catch a 
glimpse of the peak of Kangch- 
em'unga from the terrace of 
the Darjeeling Club. 

At 28,148ft, Eangcheqjunga 
Is the second highest moun- 
tain in the Himalayas. That is 
to the north, in the province of 
Sikkim. Darjeeling is still 
called hill country, although 
the hills rise to a dizzy 
7.000ft 

Those hills are remarkably 
fertile. Waterfalls spout from 
every crag. Occasionally, the 
sheer slopes are splashed with 
the multi-coloured saris of the 
teams of Nepalese women who 
earn a crust by picking tea. 

Making great tea is not so 
different from great wine. For 
grape variety read tea bush. 
The best of all is the China 
bash, brought to Darjeeling by 
the first planters Z50 years 
ago. 

Then there are China clones, 
Assam bushes and Assam 
clones. The Assam boshes will 
give you a much brisker, more 
tannic cup, but they win never 
have the delicacy of great Dar- 
jeeling. 

The leaves are withered 
before they are dried. This pro- 
cess removes the excess mois- 
ture in the leaf and begins the 
bio-chemical transformation. 
Correct withering is crucial 


to the quality of the tea. If the 
tea garden takes trouble over 
frie wither, it will preserve the 
green-leaf character in the 
China bushes; it is this which 
gives certain top quality Dar- 
jeeling teas that raislny, mus- 
catel aroma. 

Following the wither, the 
juice is extracted by rotating 
presses and allowed to fer- 
ment. The leaves are then 
dried. But, here again, great 
care must be taken: if the beat 
is too great the juices carame- 
lise. giving the tea a notice- 
able malty taste. 


like vineyards, each tea gar- 
den has its own character. 
There are 93 in the hills of 
Darjeeling, plus another 44 
down on the Terai, or 
plain. 

Terai tea is mostly big. 
black stuff made by the the 
highly extractive CTC process, 
although there are a few 
estates, such as Nuxal Bari, 
which produce a wonderfully 
refreshing green tea. Real 
quality, however, comes from 
the hills. 

About 20 miles south east of 
Darjeeling town is Goomtee, 


where the south-facing slopes 
rise to around 4,000ft 

At Goomtee they are at 
pains to separate the different 
varieties of bush and process 
them apart. A good, second 
flush Goomtee, where the 
highly prized shoots have 
accumulated more sap in their 
slower growth, often has a 
fruit aroma: peaches or 
mangoes. 

On the other side of the val- 
ley is Jungpano, one of the 
most sought after teas in Dar- 
jeeling. Jungpana is astonish- 
ingly remote: there is no road, 
and the tea needs to be 
brought over the valley to 
Goomtee before it can be 
loaded on lorries. 

When I was there in June, 
some leopard cubs had been 
seen among the tea bushes, 
leading the pickers to con- 
clude that an anxious mother 
would not be far away. 

Second-flush Jungpana has a 
cult following in Germany, 
and the garden’s favoured cus- 
tomers have convinced them 
to stop using pesticides on the 
bushes. 

In general, the move to 
organic fanning in Darjeeling 
is greeted with relief among 
the tea traders of Calcutta. 
The widespread use of nutri- 
ents in the past has over- 
worked the region's thin 
soils. 

If the Germans appreciate 
the mellow, walnut flavour of 


Jungpana, they are also the 
principal fans of the much 
more robust teas of Seeyok, a 
stunningly beautiful estate 
south west of Darjeeling. 

Seeyok bas fully embraced 
organic methods now that 
three quarters of its produc- 
tion goes to Germany. The 
bushes are not separated out, 
however, and the garden Is 
dominated by Assam hybrids, 
giving a bigger, more powerful 
tea which has none of the deli- 
cacy of Jungpana. 

Under the same ownership, 
and just across the river. Is 
Selimbong. As the teas here 
tend to walk out of the factory 
doors they are less in a hurry 
to go over to organic farming. 

The second-flush teas from 
Selimbong are among the very 
best Darjeeling has to offer. 
There are no Assam bushes 
here and the style is the purest 
China in all its delicacy. 

Darjeeling tea is very simi- 
lar to great wine. It is pro- 
duced by a combination of the 
right plants; the right soil and 
the perfect exposition. But 
these geographical factors are 
not enough in themselves: 
there must also be sufficient 
attention paid to the produc- 
tion. 

Heavy-handedness in pro- 
cessing the tea can rob the 
leaves of that nuance which 
expresses Darjeeling's land- 
scape and the clean, crisp air 
of the Himalayan foothills. 


Fine teas: reader offer 

Good tea Is expensive. Few Britons are prepared to pay the price 
of obtaining top quality single estate teas, which are eagerly 
capped up by the more discerning Germans and Japanese. 

Consequently, the more interesting high-quality teas rarely And 
thefr way to British supermarkets and only occasionally will you 
find a tea such as Seeyok in even the best small grocer or 
delicatessen. 

As a concession to Weekend FT readers, Newby Teas, a 
London tea importer, will provide the first 200 callers with a 
1 0Ogm caddie of each of the following: second-flush Darjeeling 
(from Casf/efon and Jungpana), Oolong Peach Blossom 
(Formosa) Ceylon Uva (AisJafcry) and second-flush Assam 
(Bukhaill. 

The price, including post and packing, win be £20 (mainland 
UK only). This compares with a normal retail value of £50. If you 
wish to take advantage of the offer, call 0800-136662 or fax 
071-480 0405, Newby Teas, of North burgh Street, London EC1 
VQAH. Payment will be by cheque or credit cad. 

There will be an extra postage charge for readers outside the 
UK. Readers outside the UK should call 071-336 7033. 

Do not ring Weekend FT direct 



Serving tea on an Imfian train - often a hazardous business Mapumirui 


Cookery /Philippa Davenport 

Comforts of autumn 


W ith all hope of an 
Indian summer 
now seemingly 
gone, this is the 
start of the season for comfort 
foods. Goodbye, lightweight 
snacks, and hello to meals you 
can sink your teeth into. Soon, 
we can expect the return of 
porridge to the breakfast table, 
with kedgeree as a weekend 
treat. Crumpets, toasted in 
front of tbe fire at tea-time, 
will follow along with a regu- 
lar intake of steaming soups 
and good, old-fashioned stews. 

As the days get colder, there 
will be calk for even more sub- 
stantial offerings - such as 
sticky-rich oxtail, served on a 
bed of butter beans; braised 
lamb shanks with split peas or 
little green lentils; beefsteak, 
kidney and oyster pudding; 
lemon and treacle sponge; Sus- 
sex pond pudding; and bed- 
time mugs of hot lemon and 
honey fortified with whisky or 
brandy. 

Such extreme remedies are 
not required just yet, though. 
While some things must be 
held In reserve for February, 
when winter’s grip is at its ici- 
est, mild soothers are all you 
need to maintain morale in 
these days of early autumn. 


POTATO PIE WITH 
GREEN HERBS 
(Serves 6) 

Potatoes and pastry sound too 
heavy by half, but this combi- 
nation is more refined than it 
sounds: it satisfies but does not 
stuff you solid. Serve it tepid 
or, better still, just cold; 
indeed, it is recommended with 
cold roast game birds after 
cups of hot consomme at shoot- 
ing picnics. Lemon-and-herb 
grilled chicken thighs and sau- 
teed duck breasts are other 
meaty alternatives. Use the 
lovely old English potato called 
Pink fir Apple if you can. 

Ingredients: lV41b waxy pota- 
toes such as Pink Fir Apple, 
La Ratte or Charlotte; 1-2 gar- 
lic doves; a bunch of parsley 
(preferably flat leaf); a bunch 
of thyme; l2-14oz puff pastry 
(made weight): l egg yolk 
beaten; V4pt double cream. 

Line a shallow 8-9in flan tin 
with just over half the pastry. 
Peel and slice the potatoes 


thinly and chop the garlic 
finely. Mix them together with 
plenty of pepper, some salt 6 
tablespoons chopped parsley 
and 11 4-2 tablespoons fresh 
thyme. 

file the mixture into the tin. 
Cover with the remaining 
pastry, damp the edges, seal 
and trim. Knock up and scallop 
the sides and decorate the top. 
Beat the egg with the cream 
and glaze the pie with some of 
it Make a steam hole in the 
centre of the pastry lid and 
insert a piece of rolled card to 
hold it open. 

Chill the pie for 20 minutes, 
then slide the tin on to a hot 
baking sheet and put it into an 
oven heated to 400°F/200°C (gas 
mark 6). Turn down the heat 
immediately to 375°F/190°C 
(gas mark 5) and bake for one 
hour until the pastry is puffed 
up and brown and the vegeta- 
bles feel tender when pierced 
with a skewer. 

Pour the rest of the egg-and- 



cream mixture carefully into 
the pie. Discard the funnel of 
rolled card and bake for 10 
minutes more. Cool the pie to 
tepid or let it become just cold 
before serving. 

APPLE AND ELDER 
PLATE PIE 
(Seroes 6) 

On September 29, according to 
country lore, Lucifer spits on 
blackberries to spite his rival, 
St Michael the Archangel, 
whose feast Calls on that data 


Time to cook apples with 
hedgerow elderberries instead. 

These tiny, jet-black fruits 
hang their heads heavily like 
Victorian beads when fully 
ripe. The taste of them is dark 
and mysterious: slightly sharp 
and cloying, rich and pungent 
(a world apart from the Muscat 
subtlety of elderflower blos- 
som) and excellent for Sunday 
lunch puddings such as this. 

Pick far more than you think 
you will need, as the fruit must 
be stripped from the stalk with 
a fork before wei g hin g - and 
the stalks are surprisingly 
heavy. 

Ingredients; lV4Ib cooking 
apples; lOoz elderberries 
(weighed after stripping them 
from the stalks); the juice of I 
lemon; shortcrust pastry or 
pate brist made with half a 
pound of flour; beaten egg to 
glaze; VUb caster sugar; % pint 
creamy-strained yoghurt or 
fromage frais or a mixture of 
the two. 


Peel and core the apples and 
put them into a bowl of water 
with the juice of the lemon to 
keep them white. Put the apple 
cores and peel into a saucepan 
with 5oz only of the elderber- 
ries, add 6-8 tablespoons water, 
cover tightly and simmer for 20 
minutes, crushing the ingredi- 
ents with a potato masher 
occasionally. Remove the lid 
and cook for about 5 minutes 
more to drive off some of the 
liquid - but take care not to 
bum dry. 

Tip the contents of the pan 
into a sieve placed over a bowl 
and press to extract all the fla- 
voursome pulp and juices. 
Sweeten the puree with loz 
sugar. When cold, stir in the 
yoghurt and/or fromage frais 
gently, and refrigerate. 

Line a nine to lOin pie plate 
with half the pastry. Dry the 
apples, slice them and toss 
them with the remaining 3oz 
sugar and the rest (5oz) of the 
elderberries. Heap the fruit 
into the pie plate. Cover with a 
pastry lid. Seal trim, decorate, 
glaze with beaten egg and 
make steam slits. 

Bake on a hot baking sheet 
at 4Gff , F/2Q0°G (gas mark 6) for 
35-40 minutes. Serve hot with 
the well-chilled sauce. 


F 


or the first year since 
1990, when the long, 
steady increase in 
London wine auction 
prices was halted, Christie's 
and Sotheby's increased their 
tumover in the 1993-1994 sea- 
son. Christie's total sales rose 
in the UK from £5.6m to £7.4m 
and Sotheby's from £2.38 to 
£2. 62m. 

The year-end figures were 
helped by exceptional sales. 
Sotheby’s, which has generally 
restricted wine auctions to the 
UK, achieved a substantial 
addition by the sale in Ger- 
many of the Thum and Taxis 
wines that yielded £863,000. 

In June, Christie's held the 
largest ever private-cellar auc- 
tion. It belonged to Dr Reming- 
ton Norman, a former member 
of the wine trade and an 
author. With buyer's premium 
it yielded £i.5m. and some 
prices of leading wines well 
exceeded their normal market 
level - £5.800 for a case of Mou- 
Um Rothschild '61 (£4,200) 
£5,000 for Latour '61 (£4,000) 
and £720 for Taylor '63 (£600). 
These obviously had some 


Wine auctions 


Good for buyers, 
less so for sellers 


affect on the accompanying 
average top 1994 first-growth 
and vintage port tables. 

Far East wine buyers were 
prominent in Sotheby's June 
auction. To commemorate the 
company's 250th anniversary, 
Philippe de Rothschild had 
given four uncommonly large 
bottles of Mouton-Rothschild: 
one Jeroboam (six bottles) of 
1945 that fetched £14^50. and 
three Nebuchadnezzars (15 bot- 
tles) of 1975, 1982, and 1930 that 
made £9,900, £13.750 and 
£12,650 - much higher than the 
estimate. They were bought by 
a far eastern bidder. 

Sotheby's does not provide 
an analysis of its annual wine 


London 

Wednesday, I2i?i October 1994 
a .tale of 

Fine & Rare 
Wines, Spirits & 
Vintage Port. 

This Sale includes an exceptional private cellar of 
■superb Claret, Btirgviidv and Champagne. 
Perfect provenance, dmv paid, and 50111 c of the 
world's greatest wines. 
Sotheby’s Wine Courses; let 071 408 5051. 
Autumn Vbrietal Course starts 2nd November. 

Ft 1 ntre London Sales; 
J6th November, 7th December. 
New York; 8th October, Zurich: 9ih December. 
To order ctit.iingnev, £7 tine. UK. p&p> 
please c.iH C0252J 861-114 
quoting reference FTU4ST. 

Enquiries: 
Serena Sutcliffe MW. 
Stephen Mould or Michael Egan 
Sot help's Wine Department 
Telephone 071-408 5051, Fax 071-41)8 5961 
34-33 New Bond Street. London WIA 2AA. 

SOTHEBY'S 

FfUVUkl>|7U 


sales, but Christie’s, in its King 
St auctions, increased the aver- 
age lot value from £391 to £483. 
Overall in the UK it slightly 
upped the percentage of lots 
sold from 90 to 91 per cent On 
the other hand its overseas 
sales were well down, as it 
gave up US auctions that last 
year had yielded £2.6m; (see 
Antony Thorn croft’s story 
below). 

The accompanying table 
shows the average highest Lon- 
don auction house prices 
between 1990 and 1994 of first- 
growth clarets and vintage 
ports. 

Figures in the first-growth 
table, which omits Petrus as its 
saleroom prices are so much 
higher than the others as to 
distort the averages, have risen 


above their previous peak in 
1990 - without taking account 
of inflation. 

Among the nine other most 
prominent classed-growth clar- 
ets, recovery in prices began 
more markedly in 1993, with 
less advance this year. Apart 
from the increasingly rare '61s, 
the most sought-after vintage 
is '82, while '83 and '85 are 
probably under-valued. 
Although the '89s and ’90s will 
be increasingly popular vin- 
tages, their initial prices were 
so high, and the quantities 
made so ample, that their sale- 
room prices may depend to a 
great extent on inflation. 

The sad wine, traditionally 
bought for long-keeping or 
investment, is vintage port. 
The average top auction price 


darete . 

Vtitage 


. . '. .1994 (Jan-July) • , 

'1981 . 

. 3667 

. 3817 . , . 

1970.. 

-'■-ate- 

i .-- -965 

1982. . 

'V 908 

*" ' 1073 . ... 

1985 . ' ■ ; 

' • 402- . 

. - 445. 

1986 . 

- • 443 ' 

'.632 . . ' 

198?. • 


/ .6.17 ;■ ' 


OR OmMOrntr, Haut-a* io'erta, into u- Uon/aux, 

• - 

Vintage Port . 


'■ . 1990- 

'1994- • ■ ' . ' . 

•1985.'; • . 

.483-. 

464 . 

1970. . ' '. 

! - 256 • 

. 260 

.1977 

■ 7 244" 1 

" ! • 234 

1983,. . 

- 143.' 

■■ ■ ' .-its • • . 

1985 . .- 

, 757-. 

.163 

Coetbrn^CeHt. Oak. Forvttca. Grafts* Hoi of XqHr. Mr*. 


mxSktwd St tnatymr. and wba&ra not dxJfcwJ tour nhftg* 

| Some* ' 

■■■■■•■■ : : 1 


this year is still below the 1990 
level, although there is a clear 
difference between Fonseca, 
Graham and Taylor and the 
other five leading ports. The 
three have been showing some 
price life, but nothing to com- 
pare with the quality and the 
original price of great vintages 
such as '63 and 77. 


Assuming that the pace of 
economic recovery is mirrored 
in the wine saleroom, the cur- 
rent period may he looked on 
as good for buyers, but less so 
for sellers. 

Edmund 
Penning-Ro wsell 


F 


Sotheby’s looks to $lm sale 


or all its louche 
image. New York can 
still show a puritani- 
cal streak, most nota- 
bly over the trade in liquor. 
No retailer can own more than 
one outlet for selling wines 
and spirits and, until this 
year, wine auctions were for- 
bidden in the dty. Tbe New 
York Liquor Board bowed to 
heavy lobbying from tbe retail 
and wholesale trades, which 
did not want a cosy duopoly 
threatened. 

So next Saturday is some- 
thing of an occasion. Sothe- 
by's. in co-operation with 
Sherry-Lehmann, which owns 
a well-respected liquor store 
on Madison Avenue, is holding 
its first sale in New York, and 
expects to raise more than Jim 
from almost 1,000 lots of wine. 

Oddly enough, Sherry- 
Lehmann was one of the fier- 
cest opponents of wine auc- 
tions but it is under its licence 
that Sotheby's is conducting 


the auction in its York Avenne 
premises. 

There is plenty of wine to 
sell on the East Coast. The 
Americans were enthusiastic 
buyers of wine during the 
boom years of the 1980s and 
now that prices have recov- 
ered from the post-1990 slump 
there are many well-stocked 
cellars ready for thinning. 

Unlike London, where auc- 
tions concentrate on the wines 
of Bordeaux and, to a lesser 
extent Burgundy, New York 
will also offer Californian 
wines: included in the first 
sale is an Imperial of Caymns 
“Special Selection” Cabernet 
Sanvignon 1986 estimated at 
np to $1,300. 

It comes from the cellar of 
Sam Kaplan, a noted Manhat- 
tan lawyer, who has consigned 
almost 375 cases of wine, 
including the much sought- 
after Cheval Blanc 1982, with 
a case estimated at np to 

92J20O. 


Even older wine conies from 
the cellar of John Packard and 
his father, the late Frank 
Packard, who, along with 
Alexis Lidiine, Andrt Simon 
and Frank Schoonmaker, Is 
credited with popularising top 
quality French wines in the 
US. The wines have been 
stored at extremely cold tem- 
peratures and Sotheby's reck- 
ons tbey taste “young and 
vibrant”. A case of the 1928 
Chateau Lascombes carries a 
top estimate of $3,000. 

The Americans have lost 
their enthusiasm for oddities. 
In the 1980s an American col- 
lector, or merchant, (often the 
late Malcolm Forbes), could be 
relied on to bid thousands of 
pounds in the London auction 
rooms for some undrinkable 
19th or even 18th century bot- 
tle. It helped if it had once 
belonged to Thomas Jefferson. 
The wines were placed in the 
windows of shops or graced 
wine lists. They were never 


meant to be drunk. 

One reminder of those dead 
days appears in the Sotheby’s 
auction - a magnum of 1870 
Chateau Lafite which carries 
the label of Glamls castle in 
Scotland, the home of the 
Queen Mother. The magnnm 
was sold at Christie’s in 1971 
and was recorked at the Cha- 
teau in 1991. It is said to be 
very drinkable: “For the wine 
lover who wants the ultimate 
experience," oozes the cata- 
logue. It can be yours for 
approaching $20,000* 

Sotheby’s hopes to bring in 
$5m a year from four auctions 
in New York and has already 
scheduled the next sale for 
February 4. Christie’s, which 
holds more auctions and 
brings in more turnover than 
Sotheby’s in wine. Is watching 
closely. If it can find the right 
New York partner It will cer- 
tainly enter the field soon. 

Antony Thorncroft 


Munich Oktoberfest 

Balmy nights 
barmy place 


M unich's Oktober- 
fest is not for the 
faint-hearted. 
The beer is excel- 
lent, and so are the spit-roasted 
chickens, grilled pork with 
crackling, charcoal-grilled fish, 
salt-studded pretzels and sug- 
ar-roasted almonds. But the 
crowds can be intimidating 
and the noise overpowering. 

The promise of some of the 
world's best beer, plus the gar- 
ish funfair attractions and 
stomach-churning rides - not 
for trying, or even watching, 
after downing the odd litre - 
draw more than 6m people a 
year to the field where the 
world’s largest beer festival is 
held over two weeks from late 
September. (This year’s ends 
on Monday, having been 
extended by a day to include 
that day's German unification 
celebrations.) 

Organisers of such events 
love to parade statistics about 
tbe vast quantities of food and 
drink consumed. Those for the 
Oktoberfest are formidable: 5m 
litres of beer, 7334)00 chickens, 
224,009 pairs of pork sausages 
and 80 oxen. 

When the weather is warm, 
as it often is at Oktoberfest 
time, the beer goes down with 
an extra relish, its 5.5 per cent 
alcohol content giving It more 
of a kick than Bavaria's nor- 
mal brews. Munich's six main 
breweries - Augustiner, Ldw- 
enbrfiu, Spaten, Hacker- 
Pschorr, HofbrSuhaus and Pau- 
laner - have their own huge 
beer tents, with brass bands 
blaring out oompah music to 
tbe swaying drinkers, striving 
hard to sing, talk or retain con- 
trol of their senses against the 
onslaught of noise and alcohol 
On hot days, the best bet is 
to sit on the benches outside 
the tents and enjoy the sun. By 
midday at weekends, most 
seats have been filled, serious 
drinkers (some already the 
worse for wear) ming lin g with 
toddlers and grannies. 

After a couple of hours of 
this, sated with beer and heavy 
but tasty Bavarian food, the 
crowds can become too much. 
When you can hardly take two 
steps in any direction without 
being jostled by the mounting 
influx of people, it is time to go 
home. The big wheel, dodgems 
and wild water rides can be left 
for another time - or for those 
with tougher constitutions. 

But most people love it just 
the same. Those living in 
Munich try to go at least once 
a year, often paying with beer 
and food vouchers handed out 
by their employers or local 
companies. Since the beer 
costs nearly DM10 (£4) a litre 
this year, these are hfghly 
prized. Foreigners have discov- 
ered the Oktoberfest in droves. 
Italians. Australians. New Zea- 
landers, Japanese and 


CL ARETS AND 
VINTAGE PORTS 


WANTED 

We will pay auction hammer prices. 
Please telephone 

Patrick Wilkinson 071-267 IQ4S 
or Fax: 071 2S4 2785 


Wilkinson Vintners Umtted 
F ine Wine Merchants 
Cwwanttw FW London NW32LN 


Americans are among tbe most 
enthusiastic visitors, but 
almost the whole world is rep- 
resented. Since the beer is 
strong - and for superior to 
the ‘'lagers” sold in some other 
countries - headaches and 
hangovers can be memorable. 
Surprisingly, violence is rare: 
people prefer to put their ener- 
gies into drinking and eating 
(mostly the former). 

Munich is proud of its Okto- 
berfest. held on a field named 
after Princess Therese of Saxe- 
Hildburghausen whose mar- 
riage to Bavarian Crown 
Prince Ludwig (later the first 
-King Ludwig) was celebrated 
with a fair there in October, 
1810. It brings in around 
DflUbn (£4l5m) a year In food, 
drink and tourism receipts. 

Some Bavarians show them- 
selves off in their lederhosen, 
worn with fancy white shirts, 
knitted jackets, thick socks 
and boots and (for the really 
traditional) hats with tufts of 
chamois hair. This get-up may 
he to prove that they are 
Bavarians first and Germans 
second. (Some locals joke that 
anyone sporting lederhosen is 
as likely to be a Prussian - the 
outdated description many 
Bavarians give indiscrimi- 
nately to all north Germans - 
as a native of Germany's 
southernmost state.) 

Bavarians certainly greet 
each year's Oktoberfest with 
gusto. On a balmy evening, sit- 
ting outside with blue and 
white lights strung overhead, 
the world seems to have little 
wrong with it. As more and 
more youngsters stream on to 
the scene, with groups sharing 
a Mass (litre) or two among 
them, the atmosphere is cheer- 
ful rather than menacing. 

To anyone not steeped in the 
Bavarian dialect, the jokes 
shouted out from along our 
bench by the well-oiled visitors 
from the country were almost 
incomprehensible - even my 
Munich-born wife had to strug- 
gle to understand them. Why 
was I so quiet, they asked. 
They accepted the excuse that 
I was a foreigner - in two 
senses of the word, non-Ger- 
man and non-Bavarian. 

At least, I was drinking 
Munich beer As an antidote to 
communication failures, it is 
almost unrivalled. With any- 
thing less thick than a rural 
Bavarian accent, the alcohol 
can also act as a very effective, 
if short-lived, conversational 
lubricant. After a time, it 
makes no difference anyway. 
The beer does its own talking. 

Andrew Fisher 





During the month of October, 
enjoy a selection of 
Vins de Bourgogne 
at Searcy's Brasserie, 
Level 7, The Barbkan Centre, 
London EG 

TeL- 071 588 3008 
for reservations 








-1NANCUL TIMES WEEKEND OCTOBER 1/OCTOBER 2 1 994 




PERSPECTIVES 


Lunch with the FT 

A house-trained 
polecat and 
a gentleman 

Lucy Kellaway enjoys an old-fashioned English meal 
in the company of the 'Chingford skinhead ’ 



Norman Tebbit: whatever you think at hia views, the rottweiler deBvery to terrific 


Save me from 
Healthspeak 

Michael Holman feels patronised by 
the language of Medical Correctness 


hen I told people I 
was having lunch 
with Lord Tebbit, 
some commiser- 
ated; others fore- 
cast a' stimulating occasion with a 
clever and amusi ng guest. 

The former Tory party chairman 
and loyal keeper of the Thatcher 
faith is a man no one feels neutral 
abont. He has been called the 
C hin g fo rd skinhead (he was MF for 
C hingf ord), a rottweiler, a semi 
house-trained polecat. He is also 
known as a politician with the rare 
ability to speak directly to the mass 
of the British electorate. 

He had chosen to meet at Rules, 
in Covent Carden, central London, 
a restaurant that serves soup with 
lumps of Stilton in it and Yorkshire 
pudding the size of your plate. 

I arrived early and was just 
reflecting that this was the perfect 
place for a jingoistic Briton, when a 
thin bespectacled man slipped Into 
the seat beside me, quietly apologis- 
ing for being a moment or two late. 
Small and modest, this was not the 
person I thought I had asked to 
lunch at all 

Eyeing him as he studied the 
menu carefully, I asked if he was a 
foodie. ‘'Yes I am," he said. End of 
conversation. Be then commented 
on how much he liked the menu’s 
headings, “Furred game”, and 
"Feathered game". When I recoiled 
he said that there was nothing 
wrong with “Bugs Bunny in the 
pot”, and claimed he was happy to 
“shoot, pluck and clean”. 

The waitress, who seemed not to 
know him from Adam, appeared to 
take our orders. True to form, he 
chose the Stilton soup, but followed 
it with salmon in a fancy shellfish 
sauce and chose half a bottle of 
Australian chardonnay of the sort 
you might associate more with 
Islington than Essex. 

I told Mm that his secretary reck- 
ons he is wined and dined too much 
- Claridge's one day and the Savoy 
the next "Yes I do eat out quite a 
lot,” he said. Persisting, I asked if 
he enjoyed all this high living. "I 
think I just enjoy my life anyway. 
That’s the key to it” 

This was getting desperate. Each 
word was separated from its neigh- 
bour, delivered in a quiet monotone. 
Indeed, the volume was so low that 
had we not been almost the only 
diners in the place - he had 
requested lunch at 12 - it would 
have been hard to make out what 
he was saying at all. 

He explained that the reason for 
the early hour was that on Tuesday 
afternoons he recorded a TV chat 
show for Sky television with Austin 
Mitchell, the former Labour MP. 

I asked if he was happier asking 
the questions than answering them. 


“1 don't know really, they are both 
jobs." he replied. Which did he 
think he is better at? "It depends on 
the circumstances.” 

I am sure Lord Tebbit did not 
mean to be unhelpful with these 
staccato answers. Unlike many poli- 
ticians. he evidently feels no need 
to project himself as anything other 
than a regular bloke, neither does 
be believe in talking for the sake of 
it. 

We started to disease television 
more generally, and for the first 
time the flesh and blood Lord Teb- 
bit started to resemble the mythical 
one. He deplored the quality of mod- 
em drama anil comedy, saying that 
nothing comes close to The Two 
Ronnies of 20 years ago. I mentioned 
the Monty Python repeats, and he 
looked sour. "They were the begin- 
ning of a culture that says if you 



use four-letter words everyone is 
meant to fall around laughing." 

He then started on television vio- 
lence. “Kids learn how to behave 
the same way as dogs. They imitate 
the other ones in the pack. The 
pack they see most of is television." 

From here it was a small step to 
the woes of the British educational 
system. He told me a story about 
meeting a woman when he had 
been on holiday in Barbados a few 
years ago. She had grown up in 
Britain, but had returned to her 
home country because she did not 
want her children educated in an 
inner London primary school With 
my child just due to start at such a 
school, I said that perhaps things 
were not as bad as all that 

He grudgingly agreed that some 
progress had been made “over the - 
unfortunately not - dead bodies of 
the educational establishment". He 
laughed a little at Ms remark. I 
laughed a great deal Whatever you 
think of the views, the rottweiler 
delivery is terrific. 

He started to talk with pride 
about his grandchildren, who, he 
said, were being brought up just as 
he brought up his children. This 
appeared to have involved a good 


deal of discipline. Does he believe 
that children should be hit when 
they misbehave? I asked the ques- 
tion, confident of his reply, and he 
did not disappoint me. “Yes,” he 
said. “Yes I do." 

“1 remember the last time I hit 
my younger son. He was about 16 at 
the time. After I had hit him, he 
looked at me, picked me up like a 
baby and said, there, there daddy. 
I realised 1 had lost that particular 
battle.” 

The waitress brought the food 
and he started to eat, slowly and 
carefully, leaving the vegetables to 
one side. 

I asked how he was enjoying his 
new life as a non-executive director, 
journalist and politician rolled into 
one. “It is like a badly chosen Chi- 
nese meal” he said. “Quite tasty 
but seems to lack a central theme. “ 
This was not the standard response 
from a former cabinet minis ter. 
Most pretend that life on the side- 
lines is fun, but Tebbit does not go 
in for such face-saving nonsense. 

“I would rather be taking deci- 
sions and rm plBmftwfHnp’ them than 

be part of a consensus-forming 
mechanism." he says flatly. "But 
that was a different life.” 

His present political role - wMch 
consists of attacking the govern- 
ment on Europe, Ireland, crime and 
anything else that gets up his nose 
- is apparently not to his liking. 
“Politics is a thing I’ve tried to give 
up many times,” he says. But he 
seems constitutionally incapable of 
taking that step. 

“I feel angry when I see things 
happening that are quite clearly 
going to happen, particularly when 
I had warned they would happen. 
Then I comfort myself by thinking : 

I may feel that way, but what on 
earth does the former prime minis- 
ter feeL" 

1 asked if he and Lady Thatcher 
get together frequently for mutual 
hand-wringing sessions. Politely, he 
put me right “She's not a hand- 
wringer. She's more likely to be a 
neck wringer. I'd join her there." 

He declined a pudding on the 
grounds that he iffcjy his main mail 
with his wife at night, before they 
settle down and watch News at Ten. 

I had had my eye on the dessert, 
floating islands, but decide not to 
indulge on my own. “I’ve saved 
your virtue," he said, without irony. 
In his world, ladies have virtue and 
gentlemen should defend it. 

So far Tebbit had said little to 
justify his skinhead image. I asked 
how he felt about being described 
as a “semi house-trained pole cat". 
As I said the words he beamed with 
pleasure. His plain speaking, he 
said, had been helpful in getting his 
views across. “It happens to be in 
my nature anyway." 


1 tried to extract more plain 
speaking by asking Mm about the 
progress of the new Tory party 
chairman. He declined to take up 
the invitation, preferring to attack 
his party’s lack of direction. "The 
government has too many issues on 
which it is facing in two ways at 
once. We have a very tough line on 
crime, but the prime minis ter per- 
sonally intervenes to get two girls 
out of jail in Thailand on a drugs 
charge. Kids whose behaviour is 
thoroughly anti-social get rewarded 
with lovely holidays, whereas kids 
whose behavioar is good and decent 
don’t get rewards at all 

“On Europe we lean two ways at 
once: we want to be more closely 
integrated with Europe, but do we 
want a two-speed Europe or not? 
Are we an interventionist govern- 
ment in industry or not? Where do 
we stand on the union of Northern 
Ireland?” 

He starts to reminisce about Ms 
old job as party chairman, and tells 
me that he was the “destroyers’ 
screen that protects the captain’s 
ship from attack". Everything is 
quite different now, he said, point- 
ing out that that particular role 
does not exist “The prime minister 
is a very modest man, and Fm. not 
sure if he regards himself as a cap- 
tain of the ship in that way ” This 
did not sound like a compliment, 
neither was it softened by his insis- 
tence that he has “a good deal of 
affection” for John Major. 

The greyness of today’s political 
figures is part of a wider problem, 
he explained. "Huge mountain 
ranges never disappear in volcanic 


explosions. They get ground down 
by glaciers and wind." 

“What?" I asked, querying this 
departure from plain talk into 
grand prose. 

“The Commons is in the process 
of being eroded because its power is 
going away,” he went on. ‘Tower 
has gone to the executive. It has 
gone outside to market forces, and 
now is going to Brussels." 

There followed a long, committed 
speech about the nature of federal 
power in the middle of which he 
mentioned “an American with the 
unfortunate name of Clint Bolick”. I 
smirked; he said it was “not lady- 
like" to laugh. 

He told me that he had not 
always been an anti-federalist As a 
pilot in the 1950s he had more in 
common with his international fel- 
low pilots than with folk at home. 
He told a story about a night he and 
the lads got drunk and how he 
planned to swap places with a Scan- 
dinavian pilot who looked the same 
and who had the same number of 
children of the same ages. 

He glanced at his watch and said 
he must go. Apropos of nothing, be 
laid into Douglas Hurd, the foreign 
secretary, as he went “He’s not a 
foreign office secretary but a senior 
foreign office official” he said, and 
started ranting about people who 
live in houses with long front 
drives. "Those who have long front 
drives tend to be out of touch," he 
said standing up to leave. 

I would be intrigued to meet his 
Scandinavian double. If he is out 
there, perhaps he would agree to 
have lunch with the FT one day. 


S ave me from Medical Cor- 
rectness. Protect me from 
Healthspeak. Deliver me 
from the well-meaning 
lobby that seeks to bowlderise and 
sanitise the language of illness and 
adversity. 

Let me declare an interest. I have 
Parkinson’s Disease. Cabin staff on 
airlines size me up in seconds. 1 
make for my seat unsteady on my 
pins, stumbling over the odd word, 
and displaying that tell-tale 
tremor. “What have we here,” they 
seem to say. “He must have drunk 
half his fare In the Club Class 
lounge. One torn at the drinks trol- 
ley, and that’s his lot” 

I can cope with this. Wear a 
black armband, is my advice to fel- 
low tremblers. The crew will then 
assume that you have been drink- 
ing to ease the pain, and proceed to 
press double whiskies on you. 

And nor do I mind taxi drivers 
who look the other way when I try 
to flag them down, as I stumble out 
of my office late at night They 
suspect that 1 might bring up the 
one-for-the-road in the back of their 
cab. 

But what I cannot abide is Medi- 
cal Correctness, its patronising lan- 
guage, and its Orwellian overtones. 
Is there a reader with a heart so 
hard that they were not moved to 
laughter, or at least an incredulous 
snort, when they read that the 
Spastics Society is to call itself 
Scope? 

Any day now I suspect the Royal 
Society for the Blind will call itself 
Vision, and the Parkinson’s Disease 
Society will rename itself Horizon. 
Or possibly Horizon! 

One can accept the concern that 
spastic has become a term of abuse; 
perhaps there is a case for a change 
of name. So why not the Cerebral 
Palsy Society? 

This is dismissed as “an easy and 
obvious step” by the society. The 
term cerebral palsy is “limiting, 
medical and rather ugly and old 
fashioned”. Scope, on the other 
hand “carries a degree of weight 
and a feeling of progress and some 
other positive associations: oppor- 
tunity, liberty, elbow room etc”. 
The public relations campaign to 
replace Its universally recognised 
brand name by this vacuous alter- 
native will, by the way, cost 
£750,000. 

I fear the malaise is spreading. 
The Parkinson’s Disease Society is 
also tampering with language. 
Please do not refer to people with 
Parkinson's as “victims", or 
describe them as "afflicted” by a 
"crippling” condition, wrote the 
society's press officer In its news- 
letter last year. 

These words were “judgmental”, 
and bad for morale, readers were 
told. They made us tremblers feel 
“helpless, bitter and unattractive”. 
You should not say that someone 
‘cannot walk’, instead say tases a 
wheelchair’. 

This suggestion did not go Far 
enough, I wrote in a facetious let- 
ter. "Words such as crippling are 
not only judgmental, they are 
descriptive - two disquieting fea- 


tures of far too many words and 
phrases in the English language." 

“Clearly it is profoundly offen- 
sive to say that someone 'cannot 
walk*. But to say instead ‘uses a 
wheelchair*, as the newsletter 
suggested, is unacceptable,” I 
argued. "Let us use the phrase 
’enjoys enhanced mobility in a 
seated position 1 .” 

Alas, my letter backfired. The 
society thought I was serious. 

But 1 will return to the fray, for 
the society recently launched what 
it calls an awareness campaign. Its 
theme suggests that the society's 
left hand does not know what its 
right hand is doing... rather like 
Parkinson’s Disease, come to think 
of it. 

The newsletter describes how tbe 
television advertisement “shows a 
footballer striking the ball into the 
back of the net.. .fans erupt in a 
sea of scarves and flags... cameras 
cut to a solitary figure who makes 
a stark contrast to the animated 
activity around him... it depicts the 
vivid and compelling eyes of some- 
one with Parkinson’s Disease, 
looking out from a face which 
seems to be carved out of stone. 
Parkinson’s has turned this person 
into a statue.” 

Well, it does not do much for my 


‘Any day now I 
suspect the Royal 
Society for the Blind 
will call itself Vision ' 


morale, I can tell you. If it raises 
awareness, however, and gets 
research funds rolling in. I'm all 
for it 

But the society cannot have it 
both ways. If it does not want Par- 
kinson’s to be called a “crippling” 
disease, it should not use a face of 
stone-like immobility as a shock 
tactic to elicit sympathy. 

Drop the euphemisms, because 
they do not help. They do not fool 
the sick, and they mislead the 
healthy. 

Sufferers and victims, blind and 
crippled, let os raise our canes, rat- 
tle our Zimmer frames, roll out our 
wheelchairs, raise our voices, and 
together cry: “Down with Healths- 
peak] Away with WeDtalkl” 

And speak up you silent masses, 
who are sound in wind and limb, 
heart and mind. Yon may be inhib- 
ited for fear of being thought intol- 
erant, unsympathetic or insensitive 
- but it is your language that is 
being tampered with. 

Beware the day when Medical 
Correctness triumphs, and "able 
bodied” and “healthy" and indeed, 
“fit as a fiddle” will be words that 
incur rebuke. 

“How are you feeling," your GP 
will ask. “Not physically chal- 
lenged, thanks doctor.” 

Medical Correctness is motivated 
by compassion, but seized by a dan- 
gerous illusion: that if yon change 
words, yon change reality. 







■> 


Truth of the Matter 

The ghosts 
that lie 
concealed 


Nigel Spivey on a power 
mightier than the pen 


B eauty does not qual- 
ify you as a novelist 
Dame Iris Murdoch 
will take no offence if 
one describes her appearance 
in terms of elderly grunge. Her 
husband, Booker Prize judge 
John Bayley, matches her 
aptly with his professorial bag- 
giness. 

Why should the essentially 
cerebral, hunched and private 
business of writing demand 
painted nails and trim thighs? 
And yet there is no doubt that 
an aura of pulchritude helps. 

Joanna Trollope is on 
in every bookshop window, in 
a misty vignette of blonde 
allure. Donna Tartt pouts on 
her dust jackets like the classic 
belle dame sans mem. Down- 
market, Jackie Collins oozes 
ripe glamour; upmarket Anita 
Brookner is fading, but still 
has the air of an arch school- 
mistress at whose feet one 
would gladly sit. And as for 
Jilly Cooper - her convent 
girlv radiance beamed above 
the frightful scrummage that is 
The Spectator’s annual party, 
she slew me with a wink. 

Since looks sell books, it is 
not surprising that the superla^ 
tive of all supermodels. Naonu 
Campbell, should have become 
an author. Such is the trivial- 


ity of modern popular culture. 

What has unnerved the liter- 
ary establishment, however, is 
the extent to which Naomi 
Campbell has dedicated herself 
to writing. According to one 
9lur, her publishers at Heine- 
mann had to send her a simple 
250-word synopsis of her novel, 
Swan, in order that she might 
be able to tell people what it 
was about Not because, in the 
flux of creative energy, she bad 
become over-absorbed in her 
plot and her characters, but 
rather because the story, in 
fact was effectively composed 
by someone else. 

Well, ghost-writing is noth- 
ing new. It is an odd variation 
of getting the school swot to 
write an essay for you. but no 
great cginmny attaches to the 
process. It is generally known, 
for example, that whenever the 
reader of Margaret Thatcher’s 
memoirs comes across a flash 
of wit or & uice turn of phrase, 
then one of her several ghosts, 
John O’Sullivan, is revealing 
his hand. Doltish sports per- 
sonalities, too numerous to 
mention, have always relied on 
spectral scribes; royalty, film 
stars and rock singers likewise. 

IT one describes ghosting as a 
form of collaboration, it begins 
to look rather respectable. It is 



Publishers are happy to have the ffk»s of Naomi Campbell on their ItelA 


rarely revealed how far the 
verses of Keats - a paradigm of 
isolated, hermetic genius - 
were altered or “improved" by 
his friends: the progress to 
"fair copy" of Ms long poem 
Isabella, for example, is strewn 
with corrections mid interpola- 
tions from an unsung associate 
called Richard Woodhouse. 

John Stuart Mill's posthu- 
mously-published Autobiogra- 
phy is reckoned to have had, 
technically, no fewer than 


seven authors (primarily his 
wife, Harriet). The first-page 
pieties of thanking spouses for 
support probably conceal 
masses of ghost-writing; and 
there is scarcely a book in the 
whole of English literature 
which will not have been in 
some way shaped by its 
printer, publisher or editor. 

Not to mention, of course, 
those cases of literary associa- 
tion that obscure pure author- 
ship. How much of Conrad’s 




Margo* Thatcher; the gttoets reveal their hand ic«y Andrews 


work was done by Ford Madox 
Ford? Which of Wordsworth or 
Coleridge was the more respon- 
sible for The Ancient Mariner. 
and of Eliot or Pound for The 
Waste Land? And did Bacon 
write Shakespeare? 

The cult of the author is a 
powerful force: the local econ- 
omy of Stratford-upon-Avon 
will collapse overnight if it is 
ever demonstrated that Bacon 
ghosted the Bard. Even when 
we know that an author such 


as Homer can never have 
existed in any proper sense, we 
still like to cherish an image: 
blind, old. wise Homer, who 
would have a cottage to visit if 
only we could find it. 

Knowing who wrote a poem 
or a story is, for many people, 
crucial to whether or not they 
like it; no wonder the Sunday 
supplements like to tell us 
what Peter Ackroyd has for 
breakfast, and publishers are 
so happy to have the likes of 


Madonna or Naomi Campbell 
on their lists. 

But in a wider philosophical 
context, it does not matter 
whether young Naomi Camp- 
bell wrote a story called Swan 
or Nigel Spivey wrote it for 
her. 

As French literary theorists 
would put it, there are no such 
things as authors, only 
“author-functions". 

Authors, as names in a cata- 
logue, are useful for christen- 


ing a particular discourse, or 
placing some historical con- 
straints on what their stories 
might mean. But ultimately 
their own intentions belong to 
oblivion. The supermodel 
author and her ghost are 
equally bound to be effaced. 

The discourse of the novel 
belongs to greater powers than 
an individual can wield: social 
systems, institutions and cus- 
toms rule us all including the 
literary genius. 




t 


\ 



— - ; '■•"'’JSSJKS3 


mg data lor me monitoring oi largois, ana mu lor mu Hemming ui wuaus i* , *vn« b «. b 




XIV WEEKEND FT 


FINANCIAL TIMES WEEKEND OCTOBER i/OCTOBER 2 1994 


★ 

OUTDOORS 



The best if you must have a 4x4 as a road car, the new Range Rover 4.8 HSE is the one to go far 

Motoring / Stuart Marshall 

Flying start for 
dynamic duo 

On test: a new Range Rover and Jaguar’s latest 


F or those fortunate 
motorists allowed by 
their employers (or 
accountants) to drive 
cars in the luxury class, it has 
been quite a week. 

First, a new Range Rover to 
replace the 24-year-old classic 
that began life as a dual-pur- 
pose vehicle for farmers and is 
now put forward as an alterna- 
tive to a Mercedes-Benz 
S-Class, BMW 7-Series or a 
Jaguar. Second, a new Jaguar 
XJ series - perhaps the last of 
a line that the late William 
Lyons, who founded the com- 
pany, could himself have 
styled. 

The new Range Rover is 
recognlsably descended from 
the original. But it is more 
rounded, has bigger windows, 
a gigantic boot - the spare 
wheel now lives under the 
floor - and standard air sus- 
pension, giving it four ride 
heights. It can lower itself to 
make entry and access easier, 
squat just a little for motor- 
way cruising, come up a bit 
for minor roads and crossing 
fields, and go higher still for 
extreme off-road use. 

On the highway, ft rides and 
handles better than any other 
on/off-road vehicle, with 
heavy beam axles back and 
front. And it is Incredibly 
agile over really rough coun- 
try - although only a handful 
of people buying this mobile 
drawing room will ever dis- 
cover that 

Engines are four-litre and 
4.6-litre versions of Rover’s 
own everlasting VS, pins a 2.5- 
litre, BMW-sourced, turbo- 
charged and Inter-cooled die- 
sel. With the petrol V8s, auto- 
matic transmission is stan- 
dard. The five-speed manual 
diesel - for me, the best all- 
rounder, with an up-to-28 
miles per gallon (10.81 / 
100km) consumption - will be 
joined by a two-pedal diesel 
version next s umm er. 

Only short road mileages 
could be driven in the Range 
Rovers at their launch in 
south-east England, so the 
experience served only as a 
taste of things to come. But I 
learnt enough to be convinced 
that if yon feel you must have 
a 4x4 as a road car, and your 
company can afford to pay 
between £31,950 for the 4.0 V8 
and £43,950 for a fully-loaded 
4.6 HSE, then this is the one to 
have because it is the best 
Taking part In the launch of 
the Jaguar XJ series was a 
motoring enthusiast's idea of 
heaven. There were four new 


luxury cars to drive as hard as 
one’s conscience (and wander- 
ing sheep) allowed in the wide 
open spaces of the Scottish 
Highlands. (Bnt not on the 
dangerous A9, dotted with 
warnings of speed cameras 
and unmarked police cars.) 

First, the XJR - a £45,450 
super-charged, 326 horsepower 
four-litre with massive pulling 
power at low speeds and a real 
flyer for the businessman who 
feels he is not yet old enough 
to have a Daimler V12. It 
offers super-car muscle with 
refinement, ease of driving, 
and seemingly limitless grip 
from the massively wide 45-se- 
ries Pirelli P Zero Corsa tyres. 

The most remarkable fea- 
ture of this fiery new Jaguar is 
the way the chassis engineers 
have combined super-sports 
handling with the marque’s 
traditional limousine-ride 


comfort and silence. Hie only 
clue that the tyres are getting 
on for a foot wide is their ten- 
dency to tram-line - that is, 
dodge around slightly from 
side to side on certain kinds of 
road surface. 

Jaguar engineers were urged 
by the marketing people to 
stiffen the suspension to make 
the car more overtly sporting 
(for which read less comfort- 
able). They resisted, and good 
for them. 

The XJR has more cornering 
grip than can possibly be used 
on public roads, yet it does not 
thump and bang over potholes. 
Its steering, while being much 
more direct than on past Jag- 
uars, Is never twitchy. It was, 
I thought, one of the best lux- 
ury cars, regardless of price, I 
have ever driven. 

The £34,450 four-litre XJ6 
4.0 Sport (249 hp) lacks the 


XJR’s super-charger and I7(n 
wheels but. standing-start 
acceleration apart, seemed to 
go almost as well. And the 
£53,450 XJ12 (318 hp) was 
everything one expects of a 
chairman's carriage, witb 
apparently unlimited perfor- 
mance on tap. 

Most user-choosers will go 
for the least-expensive, 219 hp, 
3.2-litre XJ6. a best buy at 
£28,950. They need not feel 
deprived, though. It might not 
have the sling-shot accelera- 
tion of the more muscular ver- 
sions but there is more than 
enough power to cope with 
any conceivable situation. It 
cruises in near silence and has 
Jaguar’s superb ride. 

I am told the Jaguar's 
enlarged boot will now take 
two sets of golf clubs in their 
trolleys. We shall see - in the 
very near future, I hope. 


HAVE WE JUST FOUND 
YOUR WEEK SPOT? 






'77-;; 77',; 7 ; 





Bel ore you decide 
where next to cast your line, 
cast your mind to a Scottish 
setting as unique as it is idyllic. 
To a river of guaranteed 
water levels with such runs of salmon 
and sea trout that, contrary to trends elsewhere, 
the catch rate is impressive, and increasing. 

To a place of unspoilt beauty- Natural — 
Highland scenery at its best — ideal for the 
serious gamefisher. 

To a variety of beats where the true sportsman 
cannot tail to respond to nature's challenge. 

To a river so carefully husbanded that it is 
constantly monitored and maintained along its 
entire length, benefiting from iar-sighted single 
ownership and investment. 

To a place where the expert ghiliics have 
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Gardening 

Stirred for spring 


T he cool, wet 
weather has res- 
cued gardens for a 
suitable autumn 
finale and, with 
renewed faith, l am planning 
for next spring at this crucial 
moment We have to stir our- 
selves now if we do not want a 
bleak April, waiting for leaves 
to return to the trees. We must 
also stir ourselves If we do not 
want a drab house in Febru- 
ary. 

Let me first pass on a lesson 
that Is especially gratifying 
because most of the nursery- 
men have not yet woken up to 
it (There is not a word about 
it, either, in any of the Royal 
Horticultural Society pam- 
phlets. literature and encyclo- 
paedias which have been fast- 
breeding recently.) As a result 
I can tell the trade how to dou- 
ble its market and make us all 
spend twice as much for better 
results. 

It should start telling us that 
when we plant bulbs for use in 
the house, we should pile them 
up in layers, one above the 
other. I mentioned this revolu- 
tion last year, having heard 
about it from that revolution- 
ary organisation, the Women's 
Institute. I can now confirm 
that it works. 

Underneath last year's 
hyacinths, we planted a lower 
layer of the white tulip Puris- 
stma. The hyacinths flowered 
late in January and, when we 
had cut off the dead pieces and 
reduced the length of leaves by 
half, the tulips appeared magi- 
cally in bud and doubled the 
room life of the entire planting. 

Bolder souls put a layer of 
crocus on top of the hyacinths, 
and some of the robust and 
cheap yellow-flowered narcissi 
Soleil d’Or underneath. One 
lady stockbroker, with a very 
deep container, went further. 
She wrote to say she spent a 
happy Sunday packing in cro- 
cus, hyacinths, narcissi and, 
lastly, the yellow-flowered lily 
tulip. West Point, which sur- 
faced through the debris late in 
March and gave a fourth sea- 
son in a single bowl She con- 
sidered the result to be the one 
investment she made last 
autumn which was actually 
worth more by late March. 

Like all revolutions, this one 
is expensive, but it doubles or 
quadruples your return on 
time and space. But when I 
first heard of the WI sugges- 
tion, I thought it must be a 
joke. Surely the shoots of the 
narcissus would dislodge the 
hyacinths and the tulips would 
he stuck underneath in the 
traffic jam? But no. 

The key to success is a deep 
flower pot The cheapest are 
plastic, but they are even more 
hideous than the average run 
of glorified cache-pots from a 
country gift shop. Indoors, I 
concealed them or planted 
directly into the deep, fluted 
pots of off-white china sold by 
the Reject Shop at up to £9 
each. While these have no 
holes in the bottom, this did 
not seem to matter last year 
because I prepared the soil 
carefully and minimised 
watering after planting. 

The old way of minimising 
watering was to use a' special 
bulb fibre, full of oyster-grit 
and willing to retain a soaking 


for several months. Nowadays. 
1 cannot find this old-fashioned 
bulb fibre in general stores: 
what they sell under that name 
Is simply peat, recycled under 
a seasonal label. I have now 
given up and simply use earth 
from the garden into which I 
mix a very small dose of water- 
retention crystals. 

Prepare the soil in a separate 
container by watering it, mix- 
ing in the crystals like ground 
almonds into a Mediterranean 
cake: then, wet the mixture 
lightly in order to activate the 
jelly. Next, pack it into the 
bowls, making sure that you 
have not over-jellied the mix- 
ture; otherwise, the bulbs will 
roL 


Follow the usual rules: put 
the bowls in a dark unheated 
cupboard or frost-proof shed 
where they can develop roots; 
the crystals should mean there 
will be no need for more water. 
Bring them into a cold room 
after two months, when the 
central layer of hyacinths 
should already be showing 
about 2in of yellow-looking 
growth above the soil. Give 
them a week or so in which to 
develop away from central 
heating, then spare out their 
entry into your main rooms. 

Layered bulbs will not flower 
for a second season indoors, 
but they seem to recover out- 


doors and perform no worse 
than hyacinths which have 
been growing in the usual seg- 
regation. Those of you 
marooned in London or a flat 
without a serious garden ought 
to enjoy this multiplication of 
results in the same spare. 

Outdoors, my plans now reg- 
ularly concern two families to 
which I thought 1 had waved 
goodbye not long after this col- 
umn began. The bother of 
growing one's own wallflowers 
and forget-me-nots was simply 
too much for today's academic 
part-timer anyway. I began to 
tell myself how frightful those 
mustard-yellow wallflowers 
looked on Brltain-ln-bloom 
town roundabouts. 


Of course, it was sour 
grapes, because wallflowers 
have an exquisite scent and 
come in Car better colours. 
They are back in my life with a 
vengeance, especially since 
finding a local wholesaler who 
supplies the councils and does 
the donkey work for me. 

My lesson here is extremely 
simple: wallflowers are shal- 
low-rooted and can be grown in 
groups between the dormant 
plants of your main borders 
without detracting from their 
later seasons. I keep returning 
to this discovery because it has 
doubled the shelf life of my 
flowerbeds, just as layering 


has doubled the life of the 
bulbs. 

1 plant groups of up to 20 
wallflowers in reds, crimsons 
and the less robust Ivory White 
(which is neither ivory nor 
white) and space them at con- 
siderable Intervals in the front 
to middle rows of the borders. 
There is no need to go to the 
expense and trouble of a con- 
tinuous carpet; in spring, a few 
repeated groups of colour lead 
the eye down the bare earth 
and are, visually, more effec- 
tive. The inter-planting with 
wallflowers allows me to cut 
down a dying border late in 
October, running two jobs 
together. 

Lastly, the forget-me-nots. I 
have tried to live without them 
but I miss them too much, just 
os the name tells us we should. 
Again, if you hunt around, 
there is sure to be a big grower 
for the bedding trade nearby 
who will do a deal on pre- 
grown plants in a serious 
quantity. 

My lesson here is much less 
forgettable: if you have the 
choice, always go for the 
smaller Indigo, not the taller 
and. looser Royal Blue. Indigo 
is so much brighter, deeper 
and more remarkable: it is 
twice the plant and, only when 
I had been unfaithful to it for a 
few seasons, did I realise how 
much better it was. 

Once again, a tew groups go 
a very long way; and. as it is so 
compact, you can fit it into 
smaller beds near the house to 
flower in those weeks before 
everything starts running wild. 



Robin Lane Fox offers a tip on how 
to make the most of your bulbs 


Fishing /Michael Wigan 

Trout to stir the soul 


W hen Darwin 
landed on the 
Falkland Islands 
in 1834 he was 
unimpressed. Wild cattle 
roamed a trackless waste oth- 
erwise devoid of mammal life. 
But Darwin was not a fly fish- 
erman. 

Even if he had been, the 
meandering estuaries and thin, 
curling rivers would have 
stirred no tremors in his cast- 
ing arm, for the only freshwa- 
ter fish in the Falkkmds were 
two small species of no 
account The estuaries were 
dominated by bulbous-headed, 
slim-tailed grey mullet which 
slipped in and out on the tide, 
not a sportsman's target 
Darwin's genius lay in 
looking back in time, not for- 
ward. Even the pioneers of the 
1940s, who changed the Falk- 
lands fishery, had no idea what 
their actions would produce. 
Brown trout eggs were 
imported from England and 
Scotland, making the 8.000-mile 
sea journey in trays of ice. On 
arrival in sub-Antarctica they 
were transferred to milk- 
churns, strapped to horses, and 
hauled to the interior. There 
they were put in the sweet 
waters of the slow-moving, 
spring-fed rivers. 

Brown trout are a resilient, 
adaptive, tough and invasive 
species. Originally found only 
in Europe, today's map reflects 
their colonisation of the rest of 
the globe. Wherever Europeans 
went they took fish with them. 


and there are now naturalised 
populations as far apart as 
Japan, New Guinea, Peru and 
Pakistan. 

Within 10 years of the brown 
trout introductions, Falklan- 
ders found themselves catch- 
ing trout which had turned sil- 
ver and grown immeasurably 
bigger than their impoverished 
brethren. 



The questing brown trout, 
finding inadequate food in the 
rivers, which were also prone 
to dry up and lose essential 
oxygen, had migrated to estu- 
aries and the sea, where pro- 
tein-rich krill swarmed. 

The present record for a 
Falk lands sea trout, winkled 
on to the hank of the San 
Carlos river in 1992 by Alison 
Faulkner, a British angler. Is 
nearly 23lb. Scale analysis 
showed it to be a remarkable 
10 years old and to have 
spawned at least five times. 

Sea trout have this advan- 
tage over the Atlantic salmon, 
their rival gameflsh: they are 


better able to recover from the 
rigours of spawning, they 
spawn more often and, because 
the core stock remains in fresh 
water, they cannot, like 
salmon, so easily be exploited 
to the verge of extinction. 

It is a curious fact of the 
brown trout's sea-going urge 
that it principally motivates 
the female; males stay at 
home. When the female 
returns, stiver and big and 
bursting with ova from the tre- 
mendous larders in the salt, 
two or three share a communal 
nest. The diminutive resident 
brown male can then fertilise 
the eggs of several females. 

Enough biology. The proper 
concern of ail self-respecting 
Falk lands visitors is how to 
attach this gleaming stiver 
maiden to a fly manipulated by 
a fishing rod. The answer is, as 
it should be. with difficulty. 

The really big fish In any 
migratory run need special 
attention. In the Palklands the 
sea trout run into rivers from 
January until the end of the 
fishing season in April. 

The best fishing month is 
February. But the big fish tend 
to run together, towards the 
end of the season, and waste as 
little time as possible in fresh- 
water. On the Chartres river, 
in West Falkland, ghiliie Tony 
Blake said he and Alison 
Faulkner had seen sea trout so 
big they could have eaten her 
record-breaker. 

Blake is a fishing phenome- 
non himself. Everything that 


happens as you fish the pool 
under his eagle-eye relates to 
his search for the big fish. A 
Sib trout jumped. He said: 
“Right The big fella won't be 
here. He would have chased 
that minnow out Try there." I 
did. He was there. 

Meantime my fishing partner 
had caught 27 sea trout aver- 
aging 2'Alb, in three hours. 

Blake particularly likes the 
story of the American fly- 
dresser who came to report on 
which of his 200 dies Palklands 
sea trout would take. “How are 
you getting on?" Blake 
inquired. "Badly," replied the 
American. "They take them 
all." 

If the Falklands was situated 
where the Canaries are, British 
fishermen would be trampling 
the grass flat on the banks. As 
it is, virtually no one goes 
there. 

■ For more information : Go 
Fishing Canada. Swan Centre, 
Fishers Lane, London W4 LRX- 
TeL 081-742 37 00. 


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FINANCIAL TIMES WEEKEND OCTOBER 1/OCTOBER 2 1994 


SPORT 


Golf 

Autumn days in the 
McCormack empire 

Derek Lawrenson greets the start of IMG season in Europe 



F ew people sit on the 
fence when Mark 
McCormack and his 
company, the Interna- 
tional Management 
Group, are the subject. In Arnold 
Palmer’s biography, written by 
Larry Guest, the author headlined 
the chapter dealing with IMG: 
"Darth McCormack and the Evil 
Empire”. 

The European tour, by contrast 
swoons at the sight of the man. If it 
is autumn, it must be time for Mark 
McCormack mo nth. Last week we 
had the EMG -promoted LancOme 
Trophy. This week it is the IMG-run 
German Masters. 

Over the next fortnight the Dun- 
hill Cup at St Andrews and the 
World Matchplay championship at 
Wentworth take place. McCormack 
devised these tournaments. He pro- 
motes them and commentates on 
them for the BBC. The players he 
manages will be there. During the 
Dunhill Cup he will chair a commit- 
tee on the Sony World Ranking, 
which he devised and has run since 
it began nine years ago. The rank- 
ing is backed by the game's ruling 
body, the Royal and Ancient, which 
allows McCormack to handle the 
television rights for The Open. Is 
there any area of the professional 
game outside his reach? 


O n-the- water umpiring 
has been a vital part 
of sailing's progress 
into a modem, readily 
comprehensible sport 
From America's Cup to the Olym- 
pics. the sight of inflatable chase 
boats pursuing competing yachts 
and referees dispensing instant jus- 
tice has become, a familiar sight . 

' La Rochelle, venue for this week's 
porkl championship of match-race 
sailing, has now witnessed the logi- 
cal next stage of that evolution: 
abuse of the umpires and the subse- 
quent banning of a leading competi- 
tor. It is an uncomfortable new era 
for a sport that still has an intimate 
and Corinthian feel to it 
Chris Law is the British helms- 
man who broke through the last 
taboo. After shouting criticism at 
an umpire who gave him four penal- 
ties in one race, he was summoned 
before a panel of the International 
Jury and, according to its published 
finding, continued his tirade during 
the hearing. The verdict was “gross 
breach of good sportsmanship” and 
disqualification from the regatta. 

Law, who has already won two 
prestigious events, the Congressio- 
nal Cup and the Royal Lymington 
Cup, this season, is hurt but largely 
unrepentant However, he is suffi- 
ciently disillusioned with match- 
racing to announce his retirement 
from a sport where he was ranked 
sixth in the world. 

“I obviously have an explosive 
McEnroe-type approach but none of 
it is malicious or personal,” he 
explained in hurt tones the morning 
after his expulsion. “In 20 years of 
competition I don't think I’ve delib- 
erately done anything with those 
motives. 

“The sport needs personalities, it 
needs characters. My evocative, pas- 
sionate way or sailing a boat has 
been described as exciting often 
enough.” 

Nemesis came in a match against 
Bertrand Pace, towards the end of 
the dual round-robin part of the 
regatta. It was extraordinarily close, 
with the boats only feet apart. This 
was more remarkable since Law 
had already collected and executed 
two penalty turns before the short 
race was half-over. According to the 


L ast month, a glorious 
major league baseball sea- 
son ended prematurely 
when a strike by players , 
closed the game down after they 
failed to agree with the owners on 
how to divide the sport's billion- 
dollar revenues. 

Now. a similar dispute over reve- 
nue-sharing between ice hockey 
players and the management of the 
National Hockey League is about to 
lead to the postponement of this 
weekend's opening of the 1994-95 
season. Barring a last-minute 
reprieve, the season that was sup- 
posed to cement ice hockey's posi- 
tion as the fastest-growing andniKt 
fashionable sport in America will be 
put on temporary hold. 

To lose one professional sport to a 
labour dispute may be regarded as a 
misfortune. To lose two looks like 
carelessness. But what iT three were 
lost? There is a possibility - a slim 
one, admittedly - that the coming 
basketball season may be disrupts 
by the failure of the players and me 
league to negotiate a new collective 
bargaining agreement. The players 
uninn and owners have already tan- 
gled in the courts over pay ana 
other issues, and the dispute could 


Not if there is the po tential to 
make money. He has enormous 
influence over both the R&A and 
the European tour. TTiere is no 
questioning his position as the most 
influential man in golf. 

His genius lay first In recognis- 
ing, and then exploiting. Palmer’s 
charismatic appeal. 

In doing so he changed golf from 


In Arnold Palmer's 
biography, one 
chapter is headlined: 
'Darth McCormack 
and the Evil Empire ’ 


a sport with limited appeal to one 
that attracted support from all 
walks of life. Furthermore, McCor- 
mack was not an insular American. 
The key word in IMG was always 
international. Gary Player's signa- 
ture gave IMG access to the South 
African market and Tony Jacklin's 
gave an entry into Britain. When 
the European tour opened for busi- 
ness, McCormack was offering tour- 
naments, sponsors, back-up, the 
works. 


official report, when the umpire's 
flag went up to give him a third 
penalty Law shouted abuse at the 
official. 

That in turn led to a fourth pen- 
alty, whereupon Law turned to the 
boat carrying the chief umpire and 
shouted: “You lot are wrecking the 
sport." 

This was almost certainly his 
undoing. The whole concept of on- 
the- water umpiring is both new and 
tough to organise. Providing a 
chase boat (with driver) plus 


Three 


yet culminate in a lockout. 

If the National Basketball Associ- 
ation season were interrupted 
before the year's end, the only pro- 
fessional tenm sport left would be 
American football But even in the 
National Football League, all is not 
well. Both players and team bosses 
are struggling to come to terms 
with life under the NFL's new sal- 
ary cap - the league-wide ceiling on 
team pay that the players’ union 
and management accepted for the 
first time this year. 

In order to keep team pay within 
the cap, clubs have been forced to 
jettison veterans or cut their sala- 
ries dramatically, and put their 
faith in a laiger-than-usual number 
of untested young players. This has 
made a lot of players and team 
managers unhappy. Many now wish 
they had never agreed to the salary 
cap. 

What is so frustrating for the 


the 30 years after he teamed up 
with Palmer at the start of the 
1960s. (He was also heavily involved 
in tennis, but that is another story.) 
No one indeed, did more. But can 
the same be said today? 

There are many who believe his 
empire is now hurting the game. 
Certainly, with such power, there is 
the potential for doing so. 

The Sony Ranking, for example, 
is run by the same company whose 
job it is to promote some of the top 
players and who gain contract 
endorsements on the strength of 
them being in the top 10 . 

And in the World Matchplay 
championship, Severiano Balles- 
teros. the most popular player in 
Europe but non-IMG, did not 
receive an invitation until one of 
the original invitees dropped out 
At the same time. Brad Faxon, win- 
less this year but an IMG man , and 
John Daly, 76th in the world rank- 
ings but a player IMG would desper- 
ately like to promote, were both on 
the original list 

IMG promotes 10 events in 
Europe, offering the tournament 
sponsors such top players as Nick 
Faldo, Colin Montgomerie and Bern- 
hard Langer, wham it manag es, it 
then claim b appearance money on 
behalf of its clients and takes the 
percentage which it is entitled to 


umpires for each pair of yachts in a 
match-race regatta is expensive and 
difficult. Even ex-sailors who are 
accustomed to sitting on protest 
committees find instant judgments 
on-the-water hard to make. Many 
international level sailors would 
agree that often decisions are hasty 
and wrong. 

“The standard of umpiring is not 
high at all It does not come dose to 
what is required,” said Law, who 
readily admits to a technique of 
pushing the arcane rules of match- 


strikes, 

fans, is that baseball football bas- 
ketball and ice hockey are all 
extraordinarily successful sports. 
The players are paid hundreds of 
thousands, or millions, of dollars, 
the owners earn vast sums from 
television contracts, attendance and 
merchandising, and the in dividual 
franchises - the clubs - are each 
valued at anything between $50m 
and $200m. 

Yet, it is the very financial suc- 
cess of American sports that is at 
the root of the problems. 

The country’s four biggest team 
sports have become huge cash- 
generating businesses. Exact fig- 
ures on earnings are not available 
(primarily because the owners want 
to keep the players in the dark), but 
according to Financial World maga- 
zine, baseball last year generated 
annual revenues of approximately 
S1.7bn l£1.07hn), football SLSbn, bas- 
ketball sibn, and ice hockey S680m. 


from all their tournament earnings, 
whether IMG- sponsored or not. 

IMG vehemently denies that its 
players' schedules show a bias 
towards IMG events. Discounting 
The Open and the tour's flagship 
event, the Volvo PGA Champion- 
ship, Faldo has played in just one 
non-IMG tournament in Europe this 
year. 

It was McCormack who came up 
with the idea of defacing every tee 
at the Open with sponsors' bill- 
boards. It was McCormack who 
asked so much for Open television 
rights that Swedish television 
refused to pay, and so viewers there 
missed Jesper Pamevflc’s brave stab 
at winning the sport's blue riband 
event 


raring to their limit. Where he dif- 
fers from bis peers is being unwill- 
ing or unable to accept the rub Of 
the green. 

“1 have a problem with authority 
that I don’t respect It got me into 
trouble at school and it’s certainly 
got me into trouble here." admitted 
Law, whose sailing career has had 
more than Its share of setbacks. 

The final irony is while he was in 
La Rochelle, Law received an invita- 
tion from the Sydney 95 campaign 
for the 1995 America's Cup to try 


These totals are considerably 
understated, because they do not 
include earnings from the sale of 
sports merchandise, which is con- 
trolled by the leagues. Clothing and 
hats bearing team logos and colours 
are so popular in America and over- 
seas that revenues from merchan- 
dising range from $800m in ice 
hockey to $2.5bn in football 
All of this would be great news 
for everyone, if only the players and 
owners could agree on how to share 
the booty. There is a single issue at 
the heart of the labour-management 
disputes in baseball, ice hockey, 
basketball and football how best to 
divide the spoils. More specifically: 
although revenues In each sport 
have been rising steadily since the 
early 1980s, player salaries have 
teen rising even faster, and the 
owners, who have fuelled the rise 
with their eagerness to pay ever 
increasing amounts to star players. 


There is evidence that the players 
are growing tired of IMG. Two years 
ago Greg Norman left, his new man- 
ager. Frank W illiams , said the Aus- 
tralian was tired of “hidden agen- 
das: you know, IMG main rig deals 
Eke we’ll give you Greg if you give 
us TV rights". 

This year, Nick Price left, making 
it two Open rhampinng in a row. 
The good young players are also 
steering clear. Ernie Els, Jose-Maria 
Olazabal and Phil Mickelson all 
chose other management groups. 

Many are put off by the terms 
(IMG takes 10 per cent of prize 
money and 25 per cent of endorse- 
ments). Faxon is McCormack's lead- 
ing US player, a ter cry from the 
early days when he had both 


out as hplmgmfln on their yacht. 
The Cup has appointed as its chief 
umpire for the four months of rac- 
ing off San Diego one John Doerr, 
the same official in charge this 
week at La Rochelle. 

The first challenger races for the 
America's Cup are less than four 
months away and it has provided a 
distinct sub-plot to events at the 
championship at La Rochelle. Each 
of the four semi-finalists - Rod 
Davis, Paul Cayard, Bertrand Pace 
and Peter Gilmour - has both a role 


want to put a stop to it To limit the 
rise in salaries and keep more of the 
revenues for themselves, the own- 
ers in each sport have either 
imposed, or are seeking to impose, a 
salary cap on the teams. 

The players, naturally, do not like 
the idea of accepting a limit on 
what they earn. In those sports 
where a cap is demanded by the 
owners (baseball and ice hockey), 
the players refuse to accept it - 
hence the strike and the lockout. In 
those sports with a cap (football and 
basketball), the players want to get 
rid of it - hence all the unhappiness 
and potential unrest. 

There is another factor behind 
the dire labour relations In Ameri- 
can sports: the changing natures of 
players and owners. 

Today’s sports stars are different 
from the heroes of the past: they are 
much better-paid; they are less loyal 
to any one team; they are advised 


Palmer and Jack Nicklaus. No won- 
der he is assiduously courting Daly. 

McCormack, uncharacteristically, 
found himself on the back foot this 
summer, trying to counter reports 
concerning the decline of his Ameri- 
can fortunes. He revealed that he 
had had offers from Rupert Mur- 
doch and Phil Knight, the owner of 
the Nike sports company, for IMG, 
but said there had teen no serious 
discussions. 

In Europe, however, he remains 
omnipotent, and talk of a crisis Is 
surely fanciful He will enjoy the 
next fortnight as his British tourna- 
ments take centre stage and. it has 
to be said, there wifi be no shortage 
of spectators who will enjoy them 
as welL 


with a leading Cup challenger and 
experience of the event going back 
many years. 

“There is a definite advantage 
going to these events with a crew 
that you are already sailing with 
regularly and at a high level” said 
Cayard. “There is also an extra 
motivation among the skippers. 
You are trying to establish a psy- 
chological pecking order that you 
will take back with you to San 
Diego." 

Cayard’s precise role next year is 
still uncertain. He recently parted 
company with the French team 
after financial disagreements. Cay- 
ard, who has dual French and 
American nationality, also has an 
offer to race aboard Stars & Stripes 
with Dennis Conner. 

*Tve also had approaches from 
the TV companies," he said. “It 
would probably make me more 
money than sailing on someone 
e Isa’s boat But once you've been in 
there, it’s hard to stay out of the 
Cup." 

In 1992 Cayard was skipper of the 
D Moro campaign, headed and 
financed by Raul Gardini. the late 
Italian industr ialis t 

Rod Davis is the skipper who has 
come out of La Rochelle looking 
strongest Rocket Rod has 15 wins 
out of IS starts in the round-robin 
series and looked untouchable. His 
crew, including three-times laser 
world champion Glenn Bourke, are 
all senior members of the One Aus- 
tralia campaign to take the Amer- 
ica’s Cup back Down Under. 

Davis is the ultimate mobile pro- 
fessional among professional sail- 
ors. He was bom in San Diego 3cd 
raced as skipper for the US in the 
1987 America’s Cup, for New Zea- 
land in the 1992 event, and now 
Australia. Conner christened him 
“yachting’s Benedict Arnold", but 
Davis is too relaxed about virtually 
everything to mind too much. 

Having been undefeated during 
the first day of the regatta here. 
Davis was asked how he explained 
three losses on the second. “I pre- 
dicted that no one would go 
through undefeated," he explained. 
“We just decided to take our beat- 
ings now, rather than on finals’ 
day." 


by a legion of agents, lawyers and 
accountants: and they are members 
of stronger unions. Players want 
their share of the spoils, and are 
willing to fight for it 

The owners have changed greatly 
over the years, too. Today, they are 
likely to have fewer ties to the local 
community, be less respectful of 
tradition and more interested in 
making a profit. They are also less 
willing to share the revenues 
among each other for “the good of 
the game", and more willing to 
stand up to the players. 

The result is more confrontation, 
and less compromise. 

Finding common ground between 
the two sides will not be easy. Some 
of the country’s test minds have 
struggled with the issues that crip- 
pled the baseball season, but no one 
has come up with a remedy. The 
commissioner of ice hockey is a 
clever, level-headed lawyer, yet he 
is ready to close down the sport just 
when it is on the verge of winning 
over a new generation of fans. 

Instead the owners and players 
will direct their highly-developed 
competitive instincts to beating 
each other, even if they risk losing 
everything else in the process. 


Cricket 

Around 

the 

world in 
80 Tests 

T he West Indies cricket 
team will leave the 
Caribbean for India in 
a few days, starting a 
global trek which will only halt, 
at least temporarily, in England 
at the end of the summer. By 
then the team will have bad four 
tours, one of which will be at 
home, and will have played 15 
test matches, and between 25 
and 30 one-dayers, depending on 
how successful they are. 

Such a hectic schedule is 
unprecedented in modern 
cricket, and comes after a full 
English season for most of the 
leading players, which followed 
a home series against England. 
After India, the West Indies will 
go to New Zealand, harry back 
home to meet Australia, and 
then travel to England for six 
tests in the summer. It is hardly 
surprising that the West Indies 
are without four stars for the 
tour of India. They risk playing 
the rest of the squad into the 
ground over the next year. 

There are many reasons for so 
much cricket. The West Indies 
are a drawing card. Names such 
as Brian Lara and Curtly 
Ambrose guarantee good 
crowds. And good crowds warm 
the hearts of cricket 
administrators, and fill the 
meagre coffers of some boards, 
not least that of the West Indies. 
The financial viability of home 
tours is uncertain because of the 
relatively small grounds and 
small crowds in the Caribbean. 

West Indian players 
apparently do not mind. Money 
for cricketers, particularly for 
good ones on consistently 
winning teams, is significant 
“A cricketer’s earning life is 
relatively short ending in the 
middle 30s if one is lucky.” says 
Alan Rae, who opened for the 
West Indies in the 1940s and 
early 1950s. and who is now a 
lawyer in Jamaica. “So they 
have to secure a firm finan cial 


Canute James on 
the problems of 
the weary West 
Indies team 


base to ensure a good standard 
of living to look after their 
progeny in their old age.” 

There are, however, obvious 
dangers to making so many runs 
while the sun shines. It is 
already telling on the West 
Indies who go to India, and 
perhaps to New Zealand, 
without several of their most 
experienced players. 

For the second time in nine 
months, Richie Richardson, the 
captain, has been forced to rest 
because of fatigue. 

Also missing will be Desmond 
Haynes, an opening batsman. 
Ambrose, who is having an 
operation for a shoulder injury, 
which could well be the result of 
too much cricket, and Winston 
Benjamin, another fast bowler, 
who is being disciplined 
following an off-th e-field 
incident in Antigua during the 
final test of the England tour. 

India's bowlers may regard. 
Brian Lara with more than 
passing concern, but batsmen 
such as Sachin Tendulkar, 

Vmod Kambli and Mohammad 
Azharuddin may see the 
inexperienced bowling support 
for Courtney Walsh as a chance 
to improve their averages. 

In spite of the West todies' 
record and seeming invincibility 
(they have not lost a test series 
since they were beaten by New 
Zealand in 1980), it will be 
difficult for a weakened and 
tired team to defeat India, one of 
the better test teams, away. 

“India will definitely have to 
consider themselves favourites." 
says Michael Holding, the 
former West todies pace bowler. 
“Without Ambrose, the West 
todies howling attack cannot 
consistently destroy the Indian 
batting. I do not see any West 
Indies bowler who is going to 
give the Indian batsmen 
sleepless nights.” 

The combination which could 
defeat the West Indies in the 
next few mouths - too much 
cricket, lassitude, a weakened 
team and improving opposition 
- could also threaten the team's 
earning power. The West Indies 
are attractive only as long as 
they are winning. 

“There is an obvious danger to 
the players' health from such a 
hectic schedule as the one the 
West Indies are undertaking,” 
says Rae. “The players can also 
lose their edge from too much 
cricket." Could he have 
withstood such rigours? 
“Certainly not I went through 
this at a slower pace and I could 
never have played county 
cricket for more than two or 
three years.” 


McCormack did a lot for golf in 


Sailing 

Umpires under siege in La Rochelle 

Keith Wheatley describes the squall that has disturbed the match-racing world championships 



Embattled again: the sailing at La Rochelle brought a dispute which ended witti British yachtsman Chris Law suspended Bony nattim 


Sport in the US /Patrick Harverson 

you’re all out 


> 


“•&ZSR 



mg data tor the monitoring oi targets, nun me n»r uie muwiuig ui »«ia w •»«&•*•*. 



XVI WEEKEND FT 


FINANCIAL TIMES WEEKEND OCTOBER 1/OCTOBER 2 1994 



MEDITERRANEAN & 
SCANDINAVIAN 
HALF PRIC E CRU ISES 
FOR YOUR OTHER HALF 

When two people naret u&afaa on * loan? Princes! Cnfae at 
Emppe. Ifac Kcood penan pay* just SK» at Ac fare, ovfag II 
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yoa Tad to Greet nlands. icnsismioc pina* and Cam ptlMxx. 

03 

PRINCESS CKU15ES 

For detxDi « yur ABTA Travel Agere at telephone 
Princess Crenel an H71 £00 2468 



THE CAYMAN ISLANDS the esotic sod 
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NEW! From December, Caledonian Airways 
fly non-slop London Gatwick -Grand Cayman 
including the new Highland First cabin. 

For brochure, call 071 581 9960. 


U 



WEST COUNTRY TOURIST BOARD 

Feel a break coming on? 

Free short breaks brochure. 

West Country Tourist Board, Dept- BFT, 
PO Box 37, Barnstaple. Devon, EX32 8YS, 
0271 23453 (24 his) 


17 





- »U* “‘...ttN.Vf 

If* 


The Best of Barbados 

Discover our portfolio of the finest and 
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Enjoy the whales, wiki life and untamed wilderness at 
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05 

FWNCXSS CTUISES 

Foe details see your ABTA "Havel Agent or telephone 
Princess Cruises on 071 8002468 



AFRICA EXCLUSIVE specialises in 
arranging superb tailonnade safaris throughout 
Africa. From the Serenged plains to the 
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Let us create exactly the right safari for you. 
Please call 0604 289 atolw 


12 FARAWAY FRANCE 

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1995 brochure 
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/fiO # 



23 



SAR TRAVEL 

The Quality Southern Africa Specialist 

For safaris, fly-drive holidays, the legendary Blue 
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New this year Touches of charm and Touches of 
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27 


Dragoman 

r*4Tr*-:rtto ^r'vn'rrr.* 


•jv 


Overland hxpeditions 


OVERLAND EXPEDITIONS 

African Safaris from 3 weeks. African Over lands 
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Latin America trips of 2 - 24 weeks 

Dragoman 65 Camp Green. 
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Tel: 071 370 1930 


18 



TREASURED ISLANDS 

Elegant Resorts 1995 collection of exotic resorts 
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Call 0244 325620 


24 



"A unique brochure featuring over SO top 
quality chalets in some of the best Ski 
resorts in Europe - Courchevel Meribel 
Chamonix, St Anton, Verbier, La Plague, 
AIpe D'Htiez and the Porte du SoleiL Ski 
Savers brings you only the best!" 

Phone: 0494 793333 

ABTA 02676 


Travel 


1994 


Brochure Guide 



SWAN HELLENIC CRUISES 

Cruise to evocative sites in die 
Mediterranean and discover more about 
the ancient world. Included in the fare 
axe a full programme of excursions, 
informal lectures and all dps. 

Tel: 071 800 2200 


T1IE HOLIDAY H ACL 

EGYPT CRUISES 

HIM J**JO 



THE HOLIDAY PLACE 

IS A SPECIALIST IN EXOTIC ESCAPES TO THE 
CARIBBEAN. AFRICA. FAR EAST. INDIA AND 
AUSTRALIA WITH THEIR EXTENSIVE 
KNOWLEDGE AND EXPERIENCE. THEY ALSO 
OFFER CRUISES AND TOURS OF EGYPT. 








!. I l 


S0MAK 


Established in 1968, So mat is a small 
family run business, firmly committed to 
providing quality, value for money 
holidays with the standards and services 
expected of the true specialist toor 
operator. 



Europe's leading collection of quality villas 
with private swimming pools and apartments 
by the sea situated in some of (he most 
beantifni resorts throughout 
SPAIN, PORTUGAL, GREECE. TURKEY, 
FRANCE. MALTA, ITALY & CYPRUS 
Tel: 01223 311322 

ABTA ATOL AITO 


13 



Asia wo rid Travel, the specialist Far East 
Tour Operator who previously traded as Asia 
Voyages, have just released their 1995 
brochure. The 116 page brochure is pac ked 
with hundreds of great holiday ideas and new 
destinations this year indude Papua New 
Guinea and the Pacific faland< of Micronesia. 

For a copy of the brochure please call 

0932 820050 

ABTA ATM. 

0361 2861 


14 


? &yr : 



ORIENT LINES & 

THE MARCO POLO 

Fly/cnuses, 12-27 days, from £2,195 per person. 
& India, Africa & India Ocean 
it New Zealand, Australia <£ South Pacific 
& Southeast Asia A the Java Sea 


Uae 0476 78747 RtsemUteJK 071-4092500 
ATOL3U3 



Luxury Private Tented Safaris in 

TANZANIA 

individually tailored to include 
Arusha. Manyara, Serengcti and Tarangire 
National Parks, Ngorongoro Crater. 
Selous and Ruaha. 

For colour brochure and full information 
portfolio contact 

Wildlife Explorer (EA) Limited, 
’Manyara 1 . Riverside. Nanpcan. 

Sl Austell. Cornwall, PL26 7YJ. 
Telephone 0726 824132 or Fax 0726 824399 


19 


Cornwall 


tope** 



CORNWALL 

Unoowded walks, empty beaches, hidden 
coves, majestic moors. Send for special 
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Dept 10, Cornwall Tourist Board. Truro, 
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25 


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JOURS & SAFARIS > 



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Botswana. Namibia. South Africa, 
Zimbabwe. Zambia 
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Gadd House, Arcadia Avenue, 
,410 London N3 2TJ 

sSFZZ 2fMJ 


29 


Club Med 







CLUB MED WINTER SKI 

Choose from 19 ski destinations in the top 
ski resorts of France. Switzerland, llaly, 
Japan and the U.S-A- for the ultimate 
all-inclusive sld holiday, stripped of 
everyday complications. 

Brochure order (0635) 38450 


20 



CLUB MED WINTER SUN 

Choose flora 38 destinations worldwide flora 
Bah to Brazil. Morocco to Mauritius and 
Thailand to Tahiti for the ultimate all-inclusive 
holiday stripped of everyday complications. 

For a brochure call: (0635) 38450. 


26 



Wz 


SWISS TRAVEL SERVICE 
- Skiing at its best! 

We offer the finest range of skiing holidays 
in all the top Swiss resorts with prices 
starting at just £467 Tor seven nights. 

Call 0992 456123 (24 houre) 
or complete the coupon. 



Pink Snow the FTs annual guide to skiing 
will be published on Saturday October 15th 
this year. Invaluable io both readers and 
advertisers alike. Pink Snow will cover the 
slopes of the world fa addition to equipment 
and ski fashions. 

For fturtber «teafls on advertising please caD 
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Tet 0181 871 3300 
POwder Byrne International Ltd 
ATOL 2763 ABTA DS369 


15 





hant> 

• BsmA/auLw iha 
IM9VJ Pttl 

BiU.' 




AUTUMN SHORT BREAKS 

Treat yourself to a holiday or short break at Our 
personally selected hotels of charm and 
character. From Normandy to Provence, 
from Como to Amalfi, plus cities (including 
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and New Year breaks. 

EXPRESSIONS Tel: 071-794 1480 
ATOL 3076. ATTO TRUST 1042 



Worldwide Journeys specialise in small 
group and tailor-made travel, safaris and 
treks throughout the world, 
and we pride ourselves on our expert 
knowledge and personal service. 

For our 1995 brochure please contact: 

Worldwide Journeys & Expeditions 
8 Comeragb Road 
London W149HP 

Tet 071 381 8638 Fax: 071 381 0836 


10 


Ciutlitt 

ITALY 



Chnlia have been organising holidays to Italy 
and only Italy for over 60 years and are proud 
to offer you our unrivalled experience. 

We cover the best that Italy has to offer 
City breaks, beach holidays. Tuscany, 
Umbria, the Italian lakes, mufti -centre 
and Tailor-made options. 

Call 0235 824 354 for your free 
1995 Citalia brochure. 


16 



Waves Cruise Consultants are promoting 
Norwegian Cruise lines 1995 Holidays by 
offering 7.5% discount on all brochure 
holidays and savings of up lo £489 per 
person on selected Alaska Cruises. 

Reservations: 071 431 7373. 


22 



Join our worldwide holidays based on the 
cofiectioos in the British Museum, accompanied 
by specialists. 

Small groups will be visiting: China, Ethiopia, 
Easter Island, South India. Egypt and many more 
destinations. 

British Museum Tours 
46 Bloomsbury Street. London WC1B 3QQ 
Telephone: 071-323 8895 


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24. Ski Savers 

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10. 

Citalia Italy 

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i«»l\ li* ^ 





Warmed 

by the 
glories of 
the frozen 
continent 

Antarctica fires Nicholas 
Woods worth’s imagination 


0748 hrs: arrive Cuverville Is. 
Position: Latitude 64 degs 41 
mms South! Longitude 62 degs. 
37 mins West Weather Cloudy, 
985 millibars. Temp: 2.5° air, 
-0.3* sea. Wind: SW 4-5, sea 
calm. 

Vessel drifting off NE of 
CiamviUe Is. Gentoo penguins, 
fur seals and 3 humpback 
whales. 


T here is no getting 
around it - Peter 
Skog, chief officer 
and keeper of the 
Explorer's log, will 
never be a Conrad, Is it his 
Swedish phlegm and unflappa- 
bility? Is this the new marine 
minimalism of the 1990s? Or is 
there simply not enough space 
to wax lyrical in each entry? 
One way or another, Chief Offi- 
cer Skog’s prose style fails to 
do full justice to the Antarctic. 

Here we are, 75 fully-grown 
adults, all dressed identically 
in wellies and bright red par- 
kas, full of hot breakfast ami 
ready to go - as excited as 
six-year-olds on a school out- 
ing. And how does the chief 
officer record the moment? He 
makes a la nding on a penguin- 
teeming, whale-surrounded, 
ice-berg-jammed antarctic 
island sound as thrilling as 
stepping off the No 88 bus on 
to the Edgware Road. Each 
time I wander up to the bridge 
to peek at the lag a new liter- 
ary disappointment awaits me. 

One dreads to think what 
calamity it would take to move 
him to passionate language - a 
giant tidal wave or a biblical 
parting of the waters might 
just do the trick. 

Rougk sea and heavy swell, 
vessel pitching and rolling he 
wrote in the log two days ago 
as we crossed the notorious 
Drake Passage &om Cape Horn 
to the Antarctic Peninsula. 
Good Heavens, in my cabin 
pitching and rolling was the 
least of it - all night long 
shoes, books, cameras, sets of 
drawers and anything else left 
unsecured whizzed back and 
forth between cabin door and 
porthole like things possessed. 
Not even the toilet paper was 
left in peace - somehow an 
entire roll managed to unwind 
itself on to the floor in my 
cabin bathroom. 

Next morning, still in the 
heaving Passage, the dining 
room looked like the charge of 
the Light Brigade. Others may 
praise Drake, Magellan and 
Darwin, all, admittedly, fine 
sailors of these fearful 
southern seas. But I praise 
Alex, our Filipino waiter, who 
with a loaded tray can make 
his way from a crashing galley 
across a bucketing floor to a 
pitching table, all without spill- 
ing a drop. 

But will Skog record that in 
the log? No. Neither will he 
note that Alex is one of the few 
people on earth to have had his 
appendix removed in an emer- 
gency operation at an antarctic 
research station. Nor that he 
never forgets the Tabasco 
sauce. Are these not all excep- 
tional feats deserving of 
record? In my honour roll of 
antarctic heroes, Alex stands 
somewhere near the top. 

Sea temperature -0.5* Skog 
has written in his passionless, 
dry-as-dust Nordic hand. 
Where does he mention that 
just yesterday some of the 
more adventurous souls aboard 
the Explorer, my own brave 
self included, went swimming 
in these frigid antarctic 
waters? Granted, it was Skog, 
and not 1. who knew the secret 
of volcanic Pendulum Cove 
and its sand beach, geo- 
thermaily heated from below. 
But where does he describe the 
great steaming and billowing, 
slos hing and wallowing that 
followed our landing? Skog 
might not be impressed, but 1 
was. Pendulum Cove gave me 
a better bath than I can get 
from my miserable little hot 
water geyser in London. 

Gentoo penguins, fur seals 
and 3 humpback whales, writes 
Skog, as if compiling a shop- 
ping list for Salisbury's super- 
market. But I can tell you that 
meeting these creatures face to 
face has nothing to do witn 
buying pesto sauce or coffee 
beans. x , 

In the first place, pesto and 
coffee smell good; colonies ot 
antarctic birds and mammals 


do not Conrad himself would 
have trouble with the smel l of 
a penguin colony - it is inde- 
scribable, but can knock you 
over at 50 yards. Guano aside, 
thou gh, penguins have great 
attraction - they are cute and 
cuddly, curious and comic, and 
in their nesting thousands, 
wholly fasc inating , ia their 
black and white outfits they 
look much like French waiters, 
but are far more approachable. 

Seals are even more impres- 
sive — their s mel l can ferwvlt 
you over at 200 yards. And in 
some ways they are even more 
like humans than penguins - a 
contented, smelly and sociable 
herd of one-tonne elephant seal 
bachelors lying together in a 
steaming sea-side wallow puts 
me in minri of a post-match 
rugby-team locker room. And 
what about those cocky, argu- 
mentative, testosterone-driven 
main for seals who spend much 
of their time vying for the 
favour of the females? Wind, 
waves, ice and water aside, I 
might be in my favourite local 
on a busy Saturday night 

But like most passengers on 
the Explorer, I reserve my 
greatest interest for the 
whales. Skog can write 3 
humpback whales and let it go 
at that if he likes. When you 
are in a Zodiac inflatable dingy 
and close enough to be 
drenched in the fine spray 
from a whale’s blow-hole it is 
rather a different matter. 
There is nothing quite like the 
company of these vast animals 
as they lazily dive and spout 
and roll and wave their flip- 
pers and raise their flukes. 
Melville wrote hundreds of 
pages about the great drama 
between men and whales; you 
would think the miserable 
Skog might manag p more than 
three wards. But no. 

1145 hrs: arrive Neumeyer 
Channel Position: a spectacu- 
lar channel, narrow and high 
sided, grander than any north- 
ern Sard. Weather marvellous 
- crystal dear air, gloriously 
sunny, fresh and bracing — the 
kind of weather that makes you 
feel happy to be alive. Sea: full 
of blue curacaocoloured ice- 
bergs. 

Vessel crunching through jig- 
saw puzzle pack ice. surrounded 
by snow-covered mountains 
plunging steeply to the sea. 

Could Skog be be responsible 
for such a loose and fanciful 
entry? Of course not -Skog 
wrote nothing at this point I 
have written it for him. The 
chief officer, apparently, does 
not believe breathtaking 
beauty worthy of recording. 
But while he enjoys measuring 
millibars, the rest of us 
enjoyed gazing out from the 
upper deck at some of the most 
astounding scenery we have 
ever seen — great ice cliffs, 
impossibly tall and pointed 
peaks, glaciers flowing at infin- 
itesimal speed into tbe sea, 
weirdly sculpted icebergs, seals 
basking on sun-washed ice- 
floes. 

We were all impressed, and 
this is saying something, for 
the passengers aboards the 
Explorer - wealthy, well-trav- 
elled, and for the most part 
American - have high expecta- 
tions. For my own part, I had 
no idea that such a continent 
existed - in my mind Antarc- 
tica was a bleak, desolate and 
lifeless place of little interest 
On the contrary, it is now for 
me a place of the greatest 
interest 

1500 hrs: arrive Port Lock- 
ing. Position: Lot: 64 degs 52 
mms SI Long: 6252 W. Weather: 
partly cloudy. 982 millibars. 
Temp. S 3 air. O’ sea. Sea calm. 

Vessel drifting off Port Lock- 
roy. Gentoo penguins, leopard 
satis. .. , 

Back to dull Stag's ditch- 
water delivery again. Does he 
never tire? Has he never stood 
on the rocks, surrounded by 
hundreds of damoreome, roost- 
ing shags, and looked down 
into the waters of Port Lockroy 
as I did? 

How striking it is to watch 
ponpiinjy slapstick, wad dling , 
inept birds on land, transform 
themselves into marvels of 
dynamic design in the water. 
With just one hop from a rock 
they become agile, graceful 
creatures, as fast as torpedoes 
as they flash about in search of 
the fish and shrimp-like krill 
that is their prey. 



•V’Vw-. 









Cute, cuddy, curious, comic and vary smelly: penguins In their nesting thousands are wholly f asc i na ting. In theft* black and white outfits they look much Hw French waiters, but are far more approachable 


MWiaed J Mods 


One moment of marine 
game-watching in Port Lockroy 
winning with me: that instant 
when, on a drifting icefloe not 
five yards distant a snoozing 
leopard seal awoke and 
yawned, showing me a great 
mouthful of needle-sharp teeth, 
then slipped silently into the 
water. There is nothing furry 
or cute about leopard seals - 
they can flay a penguin right 
out of its skin with a few 
tosses of their powerful heads. 
The moment that seal slid 
below the surface, the hunters 
became the hunted. 

But does Skog appreciate tbe 


thrill of the wild, the vitality of 
life, the inevitability of sudden 
death? Gentoo penguins, leop- 
ard seals is all he can find to 
write. But then Swedes have 
always been a squeamish lot 
when it conies to high drama. 
In their country I have seen 
dairy cows with rubber bulbs 
fitted to their horns in order 
that they cause no nnring harm 
or excitement Poor Skog. per- 
haps be should not be blamed. 

2000 hrs: arrive Paradise 
Bay. Position: Lac 65 degs 42 
mins SI Long: 6252 W. Weather 
overcast, 984 millibars. Temp: 
0.5° air, (P water. 


GOLF 


East Sussex 

NATIONAL GOLF CLUB 

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Holes — — 

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Says Executive director of the European tour ken schofieid 

100 Memberships Available 
for Phase III 

Individual Entrance Fee Annual Subscription 

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Call The Membership Office on 

0825 880088 

For further details and application form 
East Sussex National Golf Club 
Liulc Horsted, Uckheld. East Sussex TN22 5ES 

HOTELS 


In the very centre of Paris - Corporate residential suites 
with traditional hotel services - Nightly, weekly, monthly 
Studio, 1, 2, 3 bedroom apartments, 5 room penthouse 
with panoramic view for business and leisure 
YOUR APARTMENT IS WAITING FOR YOU 
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fax your business card: 33.1.45.79.73.30 

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also in New York - Brussels - Costa del sol - French Riviera 


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escorted 15 night tour 
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13 November £2835 

For ruS details pteaas 
See your travel agent or 
CALL 081-748 5050 

mvesofl® 

» JARVIS 

raxim pmiuiMiu uaimi 


FLIGHTS 


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GERMANY 


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Vessel drifting off Paradise 
Bay. BBQ, then Zodiac tours, 
landing on the Antarctic conti- 
nent. 

All is forgiven! In that last 
sentence taken from tbe log 
today I detect a tiny soupcon, 
thp merest hint of understand- 
ing, of what it is to be Man the 
Explorer. But it is enough. 
Until now, the fourth of 10 
days of cruising, we have only 
visited islands lying off the 
coast of Antarctica. This even- 
ing we land on the continent 
itself, and Skog has recognised 
the heroic symbolism of that 
act. A literary milestone. 


If there is any doubt as to 
the significance of the event, 
there is. as the chief officer 
notes, to be a magnificent out- 
door meal served on the rear 
deck, with a penguin - even 
now being chiselled in ice by a 
skilled Filipino chef - as the 
centrepiece to our blithe, mul- 
led-wine-swilling company. 

And if that is not enough, 
the captain is up on the bridge 
at this moment preparing a 
Certificate of Antarctic Explo- 
ration for each of us. We have 
“Joined the ranks of Scott and 
Shackleton", it informs us, 
“and ventured to set foot on 


Antarctica, the biggest, cold- 
est, driest, windiest, loneliest, 
most remote and least-known 
continent on earth". Not only 
that, but we are now dedicated 
to “honour the brave pioneer 
Antarctic explorers who sailed 
these frozen seas before us, 
and to protect the Antarctic 
Continent for those who will 
follow**. 

That is certainly quite a big 
mouthful for one s mall step, 
even if it is on to Antarctica. 
No matter how much the chief 
officer has loosened up, I am 
sure he would not approve of 
the tone of such a document - 


could that be why he has left 
the captain alone on the bridge 
and is down here with us 
munching BBQ? It is simply 
not his style. 

■ Nicholas Woodsworth sailed 
to Antarctica with Abercrombie 
and Kent. Sloane Square House, 
Holbein Place. London SW1. tel 
071-730 9600. A+K'S 10-12 day 
Antarctic cruises, combining 
visits to the Falklands and/or 
South Georgia, begin at £3.996, 
inclusive of return air fare from 
London. He flew to Santiago, 
originating point of the expedi- 
tion, with British Airways. 


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Fora copy of our brochure which tdw features Central & Southern Africa, the 
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FINANCIAL TIMES 

Whilst can is taken » establish that our 
advertiser!, arc bona fide, readers are 
strongly recommended to take rherr own 
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The FFs annual guide to skiing will be published on 
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Don't forget to pick up your copy, free with 
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XVIII WEEKEND FT 


FINANCIAL TIMES WEEKEND OCTOBER l/OCTOBKR 2 1994 


t 


COUNTRY PROPERTY 


CLUTTONS^ 


LANCASHIRE 

Between Lancaster and Preston 

THE BARNACRE ESTATE 

An exceptional traditional Agricultural and Sporting Estate 

Principal Residence in need of total renovation or replacement 
16 Let Dairy and Stock Farms 
Other farmland - 324 Acres 
21 houses and cottages 
266 Acres of woodland 
Fine pheasant shoot 

Total rental income: £165,465 per annum 
2,992 ACRES 
For Sale as a Whole 
LONDON OFFICE: 071 408 1010 
HARROGATE OFFICE: (0423) 523423 

HUMBERSIDE/ 

SOUTH YORKSHIRE BORDERS 

Between Goole and Doncaster 

An Excellent Commercial Farming Unit 

Grade 2 warp land 
Grain storage for over 11,500 tonnes 
1,500 tonne potato store 
Irrigation licence for 2.5m gallons 
4 modem bungalows 
Potato quota - 114 acres 

1,162 ACRES 

Freehold for Sale as a Whole or In 5 Lots 
LONDON OFFICE: 071 408 1010 
YORK OFFICE: (0904) 655770 

A FINE AGRICULTURAL PORTFOLIO 

in 

Cambs, Essex and Kent 
5 Let Farms 

Majority Grades 1 and 2 land 
Producing £151,460 per annum 
2,540 ACRES 

Part with Development Potential 
For Sale as a Whole or in 3 Lots 
LONDON OFFICE: 071 408 1010 
45 BERKELEY SQUARE , LONDON W1X 5DB 


LUXURY 


lid**) 


l| IN CORNWALL 

2 & 3 BEDROOM HOMES IN A SUPERB BEACH LOCATION 


! g®\£72.495>/ 
r m 3 QyflpGf 

8 V THIS /EXCLUSIVE 
DEVELOPMENT OFFERS 

• Leisure complex and swimming pool \ ■ — — 

■ Twenty- nine acres of private parkland | SPECIAL 

•Two all weather tennis courts I HOTEL BREAK i 

■ Children play area • Boa, Takeadvamage of our I 

I south facing views Iuxur> houl ai specialty 

! • 2 years FREE mooring (at Fatmoul/i ' * I negotiated rates. 

Yacht Marina! fi/r a limited period only ^ 1 i 

• Sauna and spa poo! ST 0326 250000 


PRICES FROM 


• Letting opportunities available 

• Sauna and spa pool 


LKINGTON — 1 — rnnnrm 

©P>LK, N GTO N HOMES 074/i92940 

THE COURT. ALEXANDRA PARK. PRESCOT ROAD. ST HELENS. WA10 3TT, 


P&G PROFFITT & GOUGII 


CHIPPERFTELD, 
NR KINGS LANGLEY 



A distinctive Edwardian country 
tcshicncc -set hi approx. 3 J acres 
of park land grounds. 

Rcccpt Mali Drawing Room. Dining 
Room. Study. Kricbcn. Staff Sluing 
Room, Mjulet Suite including 
Dressing Room, five turthcr 
Bedrooms, two farther Bathrooms. 

garaging and outbuildings. 
OFFERS IN EXCESS OF £425400 
09U 270333 

COUNTRY 

RENTALS 

KENT, TUNBRIDGE WELLS. Easy 
London cam mu to. 6 bads. 16C listed 
farmhouse. CT 500 pern. Tat 0033 Doom 


-He fBBMBh 

LINCOLNSHIRE 

TWO 

AGRICULTURAL 

INVESTMENTS 

63.74 Acres 
near Billlngay 
Rent of £4,400 per annum 
54 Acres 
near Boston 

Rent of £3,100 per annum 

Price Guide 

£1,000 -£1.200 per acre 
Fur Sale by 
Informal Tender 

Contact Brown & Co 

Tel: (01205) 311622 


l West Sussex Coast 

London 69 talcs. f*fA 

j Cbicteto Wanks. 

An depot 4-»m*y Gcorpra town home, 

Listed Code 0. in a fmiigitm 

Coosarstiaa Area at the bean of the town. 

Reception lull, I* Ooor dmrtn gmxxwnh 
1 brfoann snug raoabdiiiiiif twen, «udy, 

I kiuheo/breakfiar room, utility, 

| ’ d eo Fro oint. -V? bednoas, 2 huhiocou. 

Prime parking, garage, tnatsic gardens. 

Csik price; niywtl. 

Apptr 17 Sooth Street, Chichester 

TO IS lELTdephonc (0243) 786316. 


CHICHESTER 5 Miles. 

3 Highly individual and mpejM? appointed 
period icsaSeocea in lovely country setting 
a^ooriag tanobodwhh rood views to the 

Soorii Downs, now tteiutoccl of *HHut sad 
complete NSHreuao. Fine Georgian lu' d e o ee 
««• bed. S bath 4 Reeep. I sere OSWWa 
FhM and -ifeme Oath Home Visae £123,000. 
Sia^e sorer Rcocoey Vlls. 2 bed. 

2 boti. &£ l£ 1 65.000 

TeL 0850 963862 0243 771959 
Fax 02*3 37S49S 


CHOLLERFORD - NORTHUMBERLAND 
Unique opportunity to purchase an 
axeaithro-atyta luxury detached bungalow 
sea wtwn roNng eousttyshlo and a pretty 
village frith ell amenfUea. 4 doodle 
bedrooms, 2 taros reception room with 
panoramic views. Spacious kitchen/ 
breakfast room, generous utKty. double 
garage. Wall maintained gardens 
appnx&nate/y i<8 acts. Oasdcaly reduced 
tor quick sale. Cl 3O00Q. Contact <3A Town 
and Comry 0434 604951 


UTUHGTON EAST SUSSEX Listed 15 
Cantuy Cottage h I aero grounds. Exposed 
booms to walls a callings Mnglenook 
ftsptaCBL 3 bettoome. one. s h o rn* room 5 
tamSy bathroom. Sktteg and Dlnfcig room, 
raacben BrWrm. Views across Codmwre 
vsBey & surrourehig dowrtand. Telephone 
(0882)641110 FkOTJ 4805333. 


RETIREMENT 


j ENGLISH COURTYARD 

'IN THE VALE OF 
THE WHITE HORSE- 
Penswocs Court 
St uiftxd-fn- the- Vale, Oron. 

New cottages of lovely Colswoid stone. 
2 sod 3 bedrooms. Hncvfcro. 
£172^00 to £200.000 
iodudfag garage. 

Lease over 125 years. 

Full Service Charge deoils available. 

FOR THIS AND ALL THAT 
IS BEST IN RETIREMENT HOUSING 
ACROSS RURAL ENGLAND 
English Courtyard Assodattoa 
g Hoflnnd Street, London W8 4LT 
FREEFONE 0800 22085S 


STRUTT 
PARKER w «r 



The Bolesidc Fishings, River Tweed Melrose 3 miles. 
Edinburgh 35 miles. A rare opportunity to purchase an ouX- 
a an ding and praline 2 mile double bank beat on the River 
Tweed, averaging 445 salmon and grilse. 1 1 named pools, 
offering a wide variety of fishing throughout the season 
(February to November). Fisherman’s Cottage - sitting mom. 
dining mom. kitchen. 3 bedrooms and a bathroom. 

About 55 acres. For sale as a whole. Edinburgh Office: 
TeJ: 1 03 1 ) 226 2500. Fax: (03 1 ) 226 2508. fcrf. mamtu 

13 HJUSTREET BERKELEY SQUARE LONDON W1X 8DL 
Tel: (071) 629 7282. Fax: (071) 409 2359 
Now we are m Hong Kong. Call our representative Caroline fisher. 
Tel: 010 852 816 2532. Fa*: 010 852 816 2594 


INTERNATIONAL 



WORCESTERSHIRE, Broadway 

Moroon-in-Morsh 8 miles . Cheltenham IS miles. 

FINE LISTED GRADE Q PERIOD VILLAGE 
STONE HOUSE WITH MAGNIFICENT GARDENS 
AND VIEWS ALONG BROADWAY HILL 
4 Reception rooms, 4 bedrooms, 4 bathrooms. 

Staff wing with 2 bedrooms. Period stone bam. 

Stable block. Garaging for four with flat. Indoor 
swimming pool. Formal garden with lake. Paddock, 
i Region of £850,000 About 7.75 acres 

SawBs, Banbury (0295 263535) Contact: (ohn Lave 

INTERNATIONAL PROPERTY CONSULTANTS 


Birmingham City Centre I 1 /* miles 

EDGBASTON 

Lawnfitld, Church Road 



Outstanding Grade H Listed Residence set in around 
1.3 acres of superb Landscaped grounds with Coach House 



OXFORDSHIRE, SWINBROOK 

Hurfard I miles. Cheltenham 23 miles. Oxford 20 miles 
A fine 19th Century Vicarage in need of refurbish menL 
In a lovely position with views over the Windrush Valley. 
4 Reception Roams. Kitchen. Cellar. 7 Bedrooms. Rotbrouin, 
Garaging. Stables, Stores, Gardens 

About 1.25 acres 

For sale by auction on Tuesday 25ih October 1994 

Oxford: (01865) 311715 London: 0171 629 7154 


TORQUAY DEVON - 

AN AREA OF OUTSTANDING NATURAL BEAUTY 

Magnificent Dew award winning bouse. 
Set in sp ec ta c u lar Lutyens gardens. 
Sopeib sea views, house and gardens 
designed for elegant living with minimum 
maintena nce , built to highest 
specification, period chimney pieces and 
wealth of fine details. 3 reception rooms. 

3 bedrooms all with en suite bathrooms. | 
Sauna + gymnasium. Bi liar da roooV4th 1 
bedroom. 3 car garage with lib to j 
various floors. I 


Offers around £695,000. 
Fax/Phone: 0803 292670 


Northaw Village 

nr Potters Bar, Herts. 
Detached character 
residence. 6/7 beds, 

3 recs - in t.75 acres. 
Plus cottage. Freehold. 
AUCTION 

lOTH NOVEMBER 1994 
Maunder Taylor 
081 446 0011 


HOLIDAY HOME IN 
CORNWALL 
with wcowcfav whu ft u oppo rtunity 
Prestige development of 6 detached 
hranry cottages in grounds of premier 
Looe hotel. Maintenance and income 
totally managed. Price £89,000. 

DeuHs hum: Cotsnwiiwood 
, Manor Hold. East Looe. Cornwall 
Td: 0913 252929 


A selection of our country homes: 

HARTLEY WINTNEY 
3/4 bedroom black & white 1 
timbered cottage, rural views. 1 
£1.2S0pcm 

Substantial Victorian 5/6 
bedroom with tennis court 
£L500pcm 
NEAR ODIHAM 
5 bedroom farmhouse cl 790, 
canal frontage £Z500pcm. 

Hartley Wbvtmey (Hants! 
0252 8427 95 


A BRAND NEW 

LONDON 

TBRR.VCK RASED 


ON TI1K ORIGINAL 


DESIGN BY 

LONI kin’s MOST 


INFLUENTIAL 


Regency style 
ARCHITECT 
Thomas Cuiutt 


LONDON PROPERTY 


j : : 14/26 GLOUCESTER ST. 1 1 

J LONDON , i! 

U SW1 ii 

SUPERB BRiVND NEW 
APARTMENTS IN TRADITIONAL STYLE 



C»i7, ; tfs, : n 1 Vpli*'! 6J» : 1 ■■ J 1 1 1 4 : : 1 1 «MBd Ui-'' 


Mrtir K»n;iif-v. 
Mario » 
ItUUKtHIMN 
Uksuh'-nt P>wn.it 
SnrrnsT*:\TT.i> 
StCVKITV 
ItNIHJtl.Rtil'MI 
PUtMMi 

I'll.TlIHLA StaTV W 

1/2 Mil t. 

KvMMtMI l.lff* 

I At vn u.un 

1 IIM909III 

mm SI 57. WU 

2 B> 19991111 

him SI 77.300 

.1 Itonwvnr, 

HC.V t-W-’.JtW 


fit 

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TtaL:07T 730OS22 


Kue 071 7nOUM-l 


IRTBU99 ATIOIVAL 


MALCOLM WALTON 
INTERNATIONAL 

Buying for Investment? 

We identify the best opportunities 
for you throughout Central London 
and provide a corapimc package 
service Acquisition. Finance, 

F lunching. Letting and 
Management. Wc oho cover the 
City of Cambridge which has a voy 
strong letting market which provides 
excellent investment opportunities. 
If yon already owe an investment 
property in Centra! London joe may 
well 6nd our Property M a nagemen t 
Service of considerable value. 
For rou, details or outt ssxvtcss 
Tel 444 (071) 493 4291 
OR FAX +44 (071) 493 4319 


r — 

MOUNT STREET, 
I MAYFAIR W1 

NEW TO THE MARKET 
A SELECTION OF 1.2 AND 3 
BEDROOMED FLATS IN A PRIME 
RESIDENTIAL LOCATION. 

Lift - Porterage - All 

FLATS FULLY FURNISHED. 

39 YEAR LEASES 

£195,000 ro £450,000 

MAYFAIR OFFICE 

1 Td: 071 493 0676 

3 Fax: 071 491 2920 

A SELECTION OF 
PROPERTIES 

Situated in Portland Place Wl 
starting from £2 L 0,000 

ROBERT IRVING & BURNS 
TEL: 071 637 0321 

LONDON 

RENTALS 


SALES LETTING & 
DEVELOPMENT 
CONSULTANTS 

Specialists 

IN 

Residential Lettings 

IN 

The City of London 


MORE PROPERTY 
NEEDED 

CALL 

071 638 2153 


THE PROPERTY 
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GROUP 

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SPECIALISTS IN 
RESIDENTIAL LETTING 
A MANAGEMENT IN' 
RICHMOND 
& TWICKENHAM AREA 
TEL: OS l 744-2911 
FAX: 0S1 S!U 6422 


PROPERTY MANAGEMENT 
COMPANY OFFERS 

CHELSEA, SW3: FF house, 

2 bed/2 bath, garden, £595 pw. 
KENSINGTON, W8: FunVunfum 
house. 2 bed/1 bath. Patio S root 
tenraca E40CW50 pw. 

ST. JOHN'S WOOD, NWS: 

FF Mews House. 2 bed/2 bath. 
Garaga £310 pw. 

Contact: Mary O'SuMvan 
Tel/Fax 071 262 3098 


THE BUTLERS 
WHARF BUILDING 

By Tower Bridge, SEl 
Luxury studio, 2 and 3 bed 
apartments. River view, ff kit, 
grft, underground parking. 
From £240 per week 
TEL: 071 403 6604 
FAX: 071 403 6944 


FETTER LANE. 2 bedroom. 2 bathroom, 
douate reception room fteL Mod tro Mock. 
US. ponsr Fu»y bmbhed. 6350 per wot*. 
Barnard Marcus Tel: 071 036 2736 
Fete 071 4363649 

KENSHGTQwceNTHAL LONDON Largest 
•otacilon of quality propardas, C1S0- 
CISOOpw. From 3 wks to 3 yro. Chard 
Aaocwatec 071 7920762. 10-7pm 

*** r ®LE-FLOOHEO spacious Bol^avta 
to. 3 bed. 2 opening onto paved garden 

W4h ttXjrtaro Et wpw Tot 071 235 Kte 

HOLLAND PARK Avai now for monto 
aw* I 6d BaL SaL TV otc Ef £00 dot 
fon Tel: 071 727 0100 Fac 071 221 41 79 


INVESTORS 


Only wc can 


Locate a quality property 

Find an American corporate tenant 

• 

Provide a total management service 

Tel: 071 581 5353 
Fax: 071 584 5078 

1 97 Knightsbridge, London SW 7 1 RB 




CLARE VILLE GROVE, SW7 
Georgian family iise wmi flexible 
accomm & % slx West facing con. CH. 
2 Rtctps, Kjt, Master Bed es Sjwr. 

Dressing Rm 3l tce, 2/3 Further 
Beds, Bath, Clkrm. Bait. AoomoNAL 
ACCOMM - Smnw Rm. bedrm, 
Siiwr Rm. Fnux £650.000. 

ROLAND WAY, SVV7 

Ivy clad town hse in award winning 

MEWS, OFFERING WELL PROPORTIONED 
accomm. CH. 2 Receps, Ktt, 3 Beds. 2 
Baths (I es> Gon. Parking Space 
FIild. £595,000. 


BOLTON GARDENS 

Well presented, attvac 2nd hr 

FlATOftOOKBUiJ CMS. Ol. 

Access Gdns. 2 Well Pkopo Known 
Receps, Kit. 3 Beds, 

2 Baths. 91 yrs. 

£415.000. 

SOUTH KENSINGTON, SVV7 
Well modern beti use in coddled 
MEWS, READY FOR MMEDLYR 
occupation. CH. Recep, Kit. 

2 Beds with es Baths, Clkrm. 
RfTce. 

Fhld.BIO.UOI). 


Tel: 071 589 1243 


ANDRE LANAUVRE& Co 
Holland Park, 
WH 

Freehold house. 

8,500 square feet with garden. 

. £2^00,000 


BARBICAN. MOUNTJOY HOUSE. 
DelightftR 1J2 bedroom flat overlooking 
gardens & ponds. Lge long balcony. 
£129.000. Barnard Marcus. 071 636 2736 
Fax; 071 *36 2649 

REGENTS PARK, NW1. 1 bed on 2nd 
fl of PB blit with uno.gnd. parking. 
Lse 67 yrs £86,000. Barnard Matcus 
Tat 071 636 2736 Rue 07l 4362649 


KENSINGTON COURT. WS 
A period house with 3 fine 
reception rooms, 6/S bedrooms. 

Suit a variety of uses (STC). 
Freehold £f ,358,000 
KENSINGTON 
Tel; 071-937 7244 

CENTRAL LONDON Rhror frontage, 
opp Chelsea Harbour, 2 bedraomod 
ApaikneM. large Mng roam. Mnd KSchon 
ca. 95 sqm - DM 380.000 - private sale. 
Tet *49 7051 828014 

CHELSEA HOMESeARCH A CO Wo 
represent the buyer to Sava time and 
money: 071 937 2281. Fnx 071 837 2262 


A SELECTION OF PROPERTIES BARBICAN, EC2. SrnaP 1 bedroom. *h 
Situated In Portland Place Wi starting lacing flat, balcony. £75,000. Barnard 
tram £2 1 0,000 Robert Inrtng & Bums Marcus. 071 636 2738 Fax: On 436 2649 
Tel: 071 637 0821 


CONSIDER THESE FIVE FACTS THAT 
OFFER YOU AN EFFECTIVE WAY TO 

Capitalise on a 
Property Market 
that is on the move! 





*• r The FT has an audience of approximately 
1 MILLION READERS IN 160 COUNTRIES 

*•* The FT is published daily in five international 

CENTRES 

-r 87 % of FT Readers are classified ABC 1 * 

32% of Weekbmd FT readers have property as an 

INVESTMENT. - THIS IS IN ADOTTION TO THEIR MAIN 
HOME.** 

*■“ The Weekend FT reader has an average income 
OF £56,000 PER ANNUM** 

Our READERS' INTEREST IN PROPERTY IS GENUINE, THEY 
ARE NOT IDLE ENQUIRERS. 

THEY ARE BUYERS 

S<x»cri. • NRS Ja#*-Ob: "83 “ Smmvi* FT ftFjmeno** 9u*itv 

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*1 



> 


nNANC1AL T| MES WEEKEND OCTOBER I /OCTOBER 2 1994 


PROPERTY 


Time-share sheds its old, shabby image 

accoun t for 38 per cent of Europeans who part-own a holiday home. Suddenly , the industry has real prospects , says Clive Fewins 



Time-shares can be (bund around the world, including the exotic Seychelles In the Indian Ocean deft) and the island of Grenada in the Caribbean. Joining an established exchange network can provide a high degree of flexibility in decfcfing where to go, but re-sales can sometimes prove a problem 


P erhaps it is the thought 
of exchanging the British 
winter for a flat in the 
sun that makes the idea 
of owning - or part-own- 
ing - a holiday home in a warmer 
country so attractive. Or it could 
simply be an extension of the great 
British desire to own property, 
wherever it might be. 

Whatever the explanation, British 
buyers make up 38 per cent of 
Europe's 764,000 time-share owners. 
With the recession apparently eas- 
ing and the acceptable face of the 
industry gaining public confidence, 
there is reason to believe it can 
achieve steady growth. 

Time-share buyers- do not own 
property but have the right to use 


part of a villa or flat, usually on 
holiday, for a fixed number of 
weeks. The idea of having your own 
little place in the sun - or perhaps 
at a winter ski resort - becomes 
even more attractive when the pro- 
spective investor gets the advantage 
of such things as special air feres 
and discounts on stopover hotels, 
excursions and rental cars. 

Joining one of the established 
time-share exchange networks, such 
as Resort Condominiums Interna- 
tional (RCI) or Interval Interna- 
tional, can give an investor even 
greater flexibility. 

Time-share certainly has become 
better organised, more respectable 
and more accepted in the 20-years 
since the concept was imported 


from the US. But the Time-share 
Council, the body set up by the 
industry to act as its regulator, has 
some cautions. 

“Time-share should always be 
regarded as an investment in holi- 
days. not property," says council 
chairman Norman Burden, who 
owns two time-shares, in Torquay, 
Devon, and Tenerife, in the Canary 
Islands. "Once you have bought 
your time-share - it can cost any- 
thing from £2,000 upwards - you 
should write off the cost mentally 
and not think of re-selling it for at 
least five years.” 

There are several reasons for this. 
One is that the price of the product 
-bought new is high In relation to 
the true cost of the building: a 


developer might sell time in one of 
his properties at any thing up to five 
or six times the cost of building and 
equipping it 

The value of a time-share could 
fell by up to 40 per cent or more as 
soon as it is bought because much 
of the initial price goes towards 
paying the developer's marketing 
costs. Indeed, many time-shares in 
large complexes remain unsold for 
months or even years, thus depress- 
ing the re-sale price. In general, 
despite European economic recov- 
ery, supply still exceeds demand. 

Resale can be a problem for peo- 
ple who have owned time-shares for 
a long time. Raymond Bass, a 
retired executive from Pangboume, 
Berkshire, bought £15.000 of time- 


share 15 years ago and has enjoyed 
many successful holidays with his 
family . But now that he and his 
wife want to sell, they cannot get 
their money back, mainly because 
of the depression in property prices 
generally over recent years. “I shall 
be lucky to get £5,000 for my time- 
share weeks." says Bass. 

In any case, as Burden points out 
It would be unwise to bonk on a 
good price for a second-hand time- 
share - or even finding a buyer at 
all - in the first five or so years. 

Bass does not criticise the time- 
share concept as such. “We have 
enjoyed several dozen holidays in 
time-share apartments or villas in 
places as diverse as California, 
South Carolina, several locations in 


Spain and Portugal, and aiwn in this 
country,” he says. “Often, these 
were in self-contained complexes 
that provided us with infini tely 
superior facilities to those we might 
have enjoyed on a package holi- 
day." Bass, however, was critical of 
some big time-share developers - 
among them, several large UK com- 
panies - which, he claimed, failed 
to allow for refurbishment in their 
advance budgeting. 

One other positive aspect of time- 
share is the informal networking 
between friends and time-share 
enthusiasts that takes place. Just as 
you might let your son, daughter or 
neighbour have a week or more in 
your time-share apartment, so you 
could equally extend this to a 


cousin, aged aunt or business col- 
league. Informal arrangements of 
this sort are inevitably cheaper to 
arrange than doing it through an 
established agency. 

For those who wish to know 
more, the Department of Trade and 
Industry has produced a useful 
booklet called Your Place in the 
Sim. This can be obtained free by 
calling 071-215 3344. 

■ The Time-share Council set up in 
1990, can provide details of resort 
builders and operators as far apart 
as Scotland and Spam, the Lake Dis- 
trict and Louisiana. It also supplies 
details of agencies specialising in 
time-share exchanges. The address is 
23 Buckingham Gate. London SWlE 
6LB (tel Q71-821 8845). 


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Two roofs over their heads 


They make their 
living advising 
others on buying 
and selling homes. 
But where do the 
estate agents live 
themselves? Here 
five top names 
in the business 
reveal all to 
Gerald Cadogan 


■ YOLANDE BARNES, head of 
Savills’ Residential Research, 
crops up constantly in conver- 
sation for her startlingly bull- 
ish forecast last December that 
house prices would rise across 
the country by 19 per cent in 
1994, and by 25 per cent in 
prime central London. 

This year, she has been split- 
ting her time between west 
London and the United States. 
From a lower ground-floor flat 
in Netting Hill (the Kensington 
end), bought presciently in 
April 1992 when prices were at 
their lowest, she has been 
spending alternate fortnights 
in Philadelphia, where her hus- 
band works as a molecular 
biologist 

There, she carries on her 
research about the UK market 
from the 19th century stone 
house they rent in Chestnut 
Hill, a smart area on the north 
side of the city. While she is 
away, someone stays in the 
London flat to deter burglars 
and squatters. 

All this, of course, leaves “no 
time for a cottage in the coun- 
try. We go to other people's, or 
get out in Lancaster County. 
Pennsylvania." 

■ WILLIAM GETHING, who, 
with Charles Rlllngworth, 
founded buying agent Property 
Vision, says: “I have bought 
some of the most beautiful 
houses in En gland but I do not 
aspire to live in one myself. 
There is no nicer way to spend 
money, but I know what a 
drain they are." 

Ge thing was married in 1991 
and lives with his wife in a 
“pretty, flat-fronted, 1840s-1850s 
worker's cottage" in Brook 
Green, west London: a typical 
and “modest" piece of the Lon- 
don landscape - and only 10 
minutes’ walk to work. Before 
that, he was in Holland Park, 
where he could also walk to 
work. 

For eight years, too, he has 



Hunter: proud 


hraan renting a farmhouse on 
the Dorset-Wfltshire border, it 
is part of an estate he bought 
for a US client The house was 
semi-derelict but the landlord 
restored it 

“It is a lovely part of the 
world, head and shoulders 
above an awful lot of the south 
of England," says Ge thing. 

■ JOHN HUNTER founded 
Northacre, a high-quality 
developer, in 1988 with archi- 
tect Klaus Nilsson (after time 
in the ar my and with Savills in 
Sloane Street, west London). 
They began by converting 
what flats and houses they 
could find before moving on to 
9 Tregunter Road, SWIO. which 
the Thai government bought 
last year for its ambassador; 
and Observatory Gardens, W8, 
now in its last stages with 32 of 
its 62 units sold. The next proj- 
ect is to work on Earls Terrace, 
WS, the first terrace built in 
Kensington (1811-1815). 

“We are very proud of selling 
everything within six months 
of finishing it," says Hunter. 
“And our bankers like that. 
During the recession, quality 
has been the key to sentog” 
Northacre's in-house architec- 
tural side makes business far 
easier, too. “We pass drawings 
around and decide," 

Hunter has just bought an 



Ptdglay: manor house 



end-of-terrace house on Clap- 
ham Common. Before that, he 
rented in Wandsworth for nine 
months (intending to be there 
six) after selling a mews in 
Kensington. “We have moved 
five times in the past three 
years. It is the problem of 
being married to a property 
developer.” 

The house had been derelict 
for 10 years; the previous own- 
ers had been using it for bed- 
sits. He had to pay a premium 
price for its position but "it 
was easy for me to assess how 
much work needed doing". 
Most of all, he likes overlook- 
ing the open land of the com- 
mon; “It is better than looking 
over gardens." Then again, as 
someone who grew up in Glas- 


gow and took holidays in the 
Highlands, he is looking at an 
old shooting lodge beside a 
loch which he hopes his wife 
and two young sons will like 
enough to share with him. 

■ TONY PIDGLEY, eo-founder 
(in 1976) and managing direc- 
tor of the Berkeley Group, is 
renowned in the property 
world for selling the firm's 
land stock when prices peaked 
in 1SS9, and buying plots again 
in the trough. The firm builds 
new homes in small develop- 
ments under the Berkeley. 
Crosby and St George names. 
Many cost more than £400,000. 

Pldgiey’s own home is in a 
small village with a pub near 
Henley, Oxfordshire. He 
bought the old manor house, 
which was re-built in 1936 after 
a fire, for its “views and tran- 
quillity" - and its 14 acres. 
Recently, he has added a con- 
servatory, which includes an 
oak floor scrapped by the Brit- 
ish Museum. 

Pidgley has just sold a Lon- 
don flat in Lowndes Square 
SWl. In Spain, meanwhile, he 
has had a holiday home for 
many years at Puente Romano, 
outside Marbella on the Costa 
del Sol. “My wife loves it." he 
says. 

■ BILL YATES has been 
senior partner of Knight Frank 
& Rutley for 2Vi years and in 
the firm for 30 years. Bom in 
Wiltshire and christened in 
Salisbury cathedral, he regards 
himself as a "moonraker” (a 
native of Wiltshire) and has a 
Queen Anne farmhouse in the 
beautiful Vale of Pewsey. “We 
drew up a specification 15 
years ago. It had to have 
enough rooms for five boys, be 
convenient for London by 
motorway and near a station, 
be in a village, and have a cot- 
tage with it" 

Its chief asset, however, 
could be the garden. Yates and 
his wife, a family court magis- 
trate in London, are serious 
gardeners. “The owners two 
before us had two full-time gar- 
deners, who did annuals and 
vegetables. The ones before us 
grassed over the borders; we 
put them back in different 
places." 

Their London house is in 
Pimlico. His wife bought the 
lease in 1965 and they acquired 
the freehold from the Gros- 
venor Estate in 1979. "We are 
lucky there, too. We have got a 
garden.” Yates notes that, pro- 
vided things are kept where 
they are needed, “it is a com- 
plete pleasure living in two 
houses". 


t 


V:r .. 




mg data lor Hie monitoring oj targets, ana Die tor mu iiaiiunug ui mine iw-mbuis. 







XX WEEKEND FT 


FINANCIAL TIMES WEEKEND OCTOBER 1/OCTOBER 2 1994 


★ 

BOOKS 


An isle full of noises and sweet airs 

Kieran Cooke on the contradictions , charm and , above all, the chatter of a nation in flux 

He makes die Englishman's mis- 


T he dinner party had been 
a fairly tame affair. As 
the Irish evening light 
faded, topics would 
momentarily flare into life then, 
like rainbows, evaporate as sen- 
tences were left unfinished and 
months were delicately wiped. 

Bat then someone mentioned De 
Valera. A small, elderly gentleman, 
whose only contribution to the 
evening had been a hearty burp 
over the soap, sprang to life. 

“De Valera was a cantankerous, 
humourless old bollocks,” he said, 
his pudgy little legs kicking the 
air. “The worst thing to have hap- 
pened to this miserable little coun- 
try since CromwelL That man (here 
he brandished his fish knife, send- 
ing a piece of turbot au beurre fly- 
ing through the candlesticks) set 
Ireland back 200 years.” 

Things were not the same again. 
Tempers flared. Manners were for- 
gotten as the civil war was 
replayed across the dinner table. 
Fresh drinks were petulantly called 
for. 

By the time coffee and liqueurs 


were served in the lounge - "Hake 
mine a large one: none of yoar 
Protestant meanness here,” 
shouted one guest to his land- 
owning. but very Catholic, host - it 
was a verbal free for all. Dark per- 
sonal secrets were revealed. A bot- 
tom or two was pinched. A large 
lady walking unsteadily to the lav- 
atory almost garotted herself on a 
Victorian umbrella stand, collaps- 
ing in a heap of suspenders and 
stretched velvet 

There is nothing the Irish like 
more than talking- - particularly 
about themselves. It amounts to a 
national disease. Whole summer 
schools are devoted to the subject - 
hoar after hour, year after year. 
The conclusions are inconclusive. 

The Irish are charming, difficult 
spontaneous, unreliable, creative 


and knavish. They are Europeans, 
but not really. They are certainly 
nothing to do with the English - 
though it is grudgingly admitted 
that there are more of ns over there 
than over here. In short the Irish 
are unique - in their own sort of 
way. 

John Ardagh Is charmed by the 
Irish. He has put together a highly 
readable account of the way 
Ireland is changing and how it is, a 
trifle self consciously, coming to 
terms with the modern world. 
Ardagh ’s energy cannot be 
doubted. He crisscrossed the coun- 
try talking to scores of people from 
various shades of society. EQs list of 
thanks and acknowledgements 
reads like a Who's Who of modern 
Ireland. 

Bat somehow Ardagh is too kind. 


take of believing too much of what 
the Irish tell him. 

Ardagh finds a great wealth of 
talent in Ireland. That is true. But 
Ardagh is too fond of Uttering his 
test with gushing adjectives. At 


IRELAND AND THE IRISH: 
PORTRAIT OF A 
CHANGING SOCIETY 
by John Ardagh 

Hamish Hamilton £20, 446 pages 


least one person is described as 
astonishing, others are marvellous. 
Several people or their books and 
newspaper columns are b rillian t. 

Ardagh admits to being pleas- 
antly surprised by Northern 
Ireland. Its people, he finds, gener- 


ally have more about them than 
the more easy going southerners. 
But again he cannot resist a bit of 
hyperbole. “The people are marvel- 
lous, second to none.” 

Mary Robinson, the president, is 
one of the brilliant ones. “A creak- 
ing political system - but a fine 
new woman President” is the irri- 
tating sub heading in one chapter. 
President Robinson is doubtless 
one of the best firings to have hap- 
pened to modem Ireland. 

But as Ardagh paints out, she 
might have influence but she has 
no power in a country where politi- 
cal talent - in contrast to the cul- 
tural or academic spheres - is very 
thin on the ground. As is hinted at, 
Ireland has been a badly run coun- 
try. 

The sleeve note on bis book 


describes Ardagh as “a strong 
believer in the battered old idea of 
European union.” There is no 
doubt that EU membership has 
brought great advantages to 
Ireland. It has widened cultural 
horizons, raised incomes, particu- 
larly of fire farmers, and done away 
with some of the old dependence on 
Britain. 

Bnt EU membership has intro- 
duced a new kind of dependence. 
Irish politicians gleefully talk 
about “the take” from Brussels. EU 
membership has only delayed the 
painful adjustment of Irish agricul- 
ture to the modern market econ- 
omy. In spite of the Irish diaspora 
spread round the world, Ireland 
itself remains an insular society, 
hardly part of the European main- 
stream. 


Ardagh does explode many of the 
old myths about Ireland by focus- 
ing on society as it Is and not, as 
tourism promoters would have it, 
as some kitsch theme park fall of 
Yeats and leprechauns. In the 
midst of all the interviews it is a 
pity that Ardagh does not pause for 
a bit more tun. When he does }t 
illuminates what at times is a 
somewhat repetitive journal. 

Ardagh describes meeting Garech 
Browne, part of the Guinness clan 
and an eccentric even by Irish stan- 
dards. “Garech is married to an 
Indian princess who is sometimes 
around. He was asleep when I 
arrived as agreed at 7pm, but even- 
tually he woke up and remembered 
who I was . . 

Garech is founder of one of 
Ireland’s most successful recording 
companies but bad no record player 
in the house. Ardagh relates how 
Garech takes him out to sit in bis 
old Mercedes where, “shivering 
under the starry March night, we 
listened to cassettes of glorious 
Irish folk music on its radio. I went 
home very happy.” 



A rare 16th century botanical drawing, reprinted in the revised Illustrated Herbal by Wilfrid Blunt and Sandra Raphael (Frances Lincoln £25, 191 pages) 


The primrose path to 
the pinnacle of power 

The British Establishment is a self-perpetuating oligarchy serviced by 
England’s two ancient universities , argues Andrew Neil 


T here is nothing inherently 
wrong with elites. Every coun- 
try has them- in some, they 
are an asset; in others, a dis- 
tinct drawback. 

Successful elites in the modem world 
tend to be open to meritocracy, drawn 
from a reasonably broad spectrum of soci- 
ety, dedicated to wider goals than just 
their own privilege and social status, edu- 
cated and experienced in what makes a 
dynamic market economy tick. America's 
movers and shakers come closest to this 
ideal, as do the elites of post-war Germany 
and Japan, to varying degrees. 

At the other extreme are those elites 
which remain closed and narrowly drawn, 
usually from a few wealthy families, hos- 
tile to free-market democracy which would 
challenge their entrenched privilege, dedi- 
cated to exploiting the masses whom the; 
treat with contempt, rather than empower- 
ing or enriching them. The kleptocracy of 
Haiti provides a contemporary example of 
this sort of elite. 

The British Establishment falls some- 
where between the American and Haitian 
extremes: less broadly based, meritocratic 
or successful than its American counter- 
part, more so than the Haitian one. 

Increased social mobility has made the 
British elite more open to meritocratic 
advance than it was 100 or even 50 years 
ago. What is remarkable, as Walter Ellis's 
book reveals, is just how much of an 
Oxbridge preserve it remains. Even I was 
surprised by the grip - in some cases the 
stranglehold - Oxbridge continues to have 
on the levers of power. Ellis shows that in 
the traditional areas - politics, the law, 
the civil service, the City and religion - 
Oxbridge graduates remain predominant 
in the top positions. 

The power of Oxbridge to place its peo- 
ple in plum posts has eroded a bit in some 
areas: but on present trends Oxbridge 
graduates will still dominate this nation 
100 years from now. 

Ellis also shows, more startlingly, that 
even in less traditional areas, such as the 
media and popular entertainment, 
Oxbridge also enjoys a preeminence. The 
BBC and the broadsheets are Oxbridge 
bastions. Ellis is kind enough to write that 
as editor of The Sunday Times I have 
employed journalists "of every back- 
ground and none.” But even the only other 


broadsheet, daily or Sunday, edited by a 
non-Oxbridge man. The Independent on 
Sunday, is dominated by Oxbridge types. 
Senior editors at the Telegraph newspa- 
pers and the Financial Times are also 
almost overwhelmingly Oxford or Cam- 
bridge men. 

Snooty Oxbridge has now infiltrated 
even popular culture. British comedy in 
the Morecambe and Wise era used to have 
strong roots in the working class. Since 
Monty Python days it has gradually been 
taken over by Oxbridge: the wave of 
"alternative” comedians of the 1380s who 
have now become mainstream "luwies” is 
largely Oxbridge. Even our literature has 
been colonised. Shakespeare. Dickens, 
Eliot, Scott, Austin, the Brontes - they all 
owed nothing to Oxbridge. But today's lit- 
erary mafia is an Oxbridge near-monopoly. 

Apologists for Oxbridge, and they are 
already mustering to savage this book. 


THE OXBRIDGE CONSPIRACY 

by Walter Ellis 

Michael Joseph £15.99. 340 pages 


.will argue that none of this matters: 
Oxbridge graduates are simply the best 
and the brightest ("I don’t see why 2 per 
cent shouldn’t translate into 90 per cent,” 
says one Cambridge woman. “Employers 
are looking for the top people of a 
generation, and they go to Oxford and 
Cambridge”); and, in any case, both 
universities are now part of the meritoc- 
racy - almost 50 per cent of their intake is 
from state schools. Both arguments are 
bogus. 

It is part of the insufferable pomposity 
and arrogance ot so many Oxbridge types 
that its graduates dominate the pinnacles 
of power simply because they are the best 
I have never found this to be the case. I 
never cared which university staff at The 
Sunday Times went to, and usually did not 
know. When, often in casual conversation. 
I learned their alma mater, it was rarely 
the case that the best bad been to 
Oxbridge. 

As Ellis argues, many of Britain’s best 
and brightest do not apply for Oxbridge in 
the first place, often because they think 
that socially they would not fit in. As a 
result the competition to get into other 
universities is often greater than it is to 


get Into Oxbridge: at modest Nottingham, 
for example, there are six applicants for 
each place; the Oxbridge average is just 
three. 

What Oxbridge provides, however, is 
access, in the manner of a self-perpetuat- 
ing oligarchy - the universities are. as 
Ellis puts it. "the marshalling yard for the 
gravy train.” At The Economist, the 
Oxbridge-educated senior editors would 
regularly ask Oxbridge authors to send on 
their brightest students. High-flyers from 
Manchester or Leeds had no such privi- 
leged path. It is a special treatment for 
Oxbridge graduates that exists right 
across the British Establishment. 

The idea that the two ancient universi- 
ties are part of meritocratic Britain is 
mere sophistry, at which Oxbridge folk 
excel If SO per cent of the intake is now 
from state schools, it means that over 50 
per cent still comes from private schools 
which educate just 7 per cent of our chil- 
dren. They may be among the most privi- 
leged and best-educated; it does not follow 
they are innately the brightest. Moreover, 
as Ellis points out, even those from the 
state sector come overwhelmingly from 
the remaining grammar schools and shire 
comprehensives. themselves predomi- 
nantly middle class. The way we waste the 
talents of those from less privileged back- 
grounds while overpromo ting the medio- 
cre from the middle classes is one of the 
disgraces of modern Britain; in that 
regard. Oxbridge is part of the problem, 
not the solution. 

Ellis has written a brave book that 
needed to be written, though in places it is 
rambling and repetitive and the research 
often seems skin-deep. It is also weak on 
analysing the confluence of class a nd cul- 
ture that has kept Oxbridge predominant 
For that, Professor Weiner's English Cul- 
ture and the Decline of the Industrial Spirit 
remains the best text The hegemony of 
the two universities would not matter if 
Britain was a great success story in the 
20th century. But Oxbridge imparts to our 
elite values which, in their anti-commerce, 
anti-technology, anti-market snobbery, 
make them unfit to run a modern econ- 
omy. It is the Oxbridge elite which has 
presided over the decline of this nation, 
and it lacks the ability or the tempera- 
ment to reverse it As Ellis writes: “Britain 
under Oxbridge is a failed experiment” 


Fiction/J.D.F. Jones 

Catch-22 in apocalyptic mode 

seous"). In these two charac- 


Campaign of love 
and loathing 

Jurek Martin on a his’nhers 
account of the presidential race 



C losing Time starts 
like Catch-22: Yossar- 
ian is in hospital, 
flirting with his 
nurse and thinking about 
death. "’We can’t find anything 
wrong,' they told him. ‘Keep 
looking,' he instructed. 'You're 
in perfect health.' ‘Just wait' 
he advised.” The difference is 
that Yossarian is now an old 
man suffering from “late-life 
depression”. 

So is this the same Joseph 
Heller whose first novel, 33 
years ago, gave a catch-phrase 
to the world? Heller must 
know the question well. “‘You 
sound so bitter these days"’, a 
friend says to Yossarian. ‘"You 
used to be funnier.’” 

True, this is a bitter novel 
and not so “funny” as Catch-22, 
□or. I think, is it intended to 
be. Much has been made of 


Closing Time being the 
“sequel" to that first, best-sell- 
ing masterpiece, but the point 
should not be over-stated. Yos- 
sarian, the Arm e nian bombar- 
dier with a healthy fear of 
being killed, is 68, still has sex 
on his mind, and is contem- 
plating a third marriage. Milo 
Minderbinder, the mess officer 
who takes capitalism to 
extremes, has prospered 
beyond all dreams and, with 
his son M2, is developing an 
invisible, super-stealth 
bomber. The Chaplain is dis- 
covered in old age to be pass- 
ing heavy water and to have 
tritium in his flatulence: Milo 
says. “We will patent the chap- 
lain as soon as we fled how he 
works, and we are looking for 
a trademark. We are thinking 
of a halo . . 

But be warned that there is 


no return for Major Major, Col- 
onel Cargill General Dreedle 
or Doc Daneeka. Instead there 
are two Jewish friends from 
Coney Island, Sammy Singer 
and Lew Rabinowitch; Noodles 
Cook, the hopeless publicist 
who goes to work in the White 
House; an ail-knowing private 
eye; assorted wives and nurses; 


CLOSING TIME 

by Joseph Heller 

Simon & Schuster £14.99, 
464 pages 


and Little Prick, the US Presi- 
dent, whose passion for video 
games eventually brings the 
world to an end. 

There is much re-visiting - 
and re-working - of the war- 
time episodes of Catch-22 . and, 
for today, lurid descriptions of 
the nightmare squalor of 1990s 
New York. It is a sprawling, 
scarcely coherent jumble of a 
book, bursting with ambition 
and imagination. Parts of it are 
excellent. 

By far the best chapters have 
to do with Sammy and Lew. 
Sammy Singer, who had only a 
tiny part in Catch-22, is wid- 
owed, melancholy, plucky, an 
early-retired copywriter: “I 
never thought Td be this old. 
wake with stiff joints, and 
have nothing really to occupy 
myself with most days but my 
volunteer fund-raising work 
for cancer relief." Lew Rabi- 
nowitz. an entirely new cre- 
ation. is an ex-infantryman 
who Is dying - again, brave 
and jesting - of Hodgkin's Dis- 
ease (Tin sick of feeling Hau- 


lers, and especially in their 
memories of their Coney Island 
boyhood, Heller has returned 
to his own roots and has rarely 
seemed better. 

The problem comes when he 
switches into apocalyptic 
mode, as Yossarian observes 
the preparations for a gro- 
tesque society wedding in, of 
all places, the Port Authority 
Bus Terminal. This leads him 
down into a Dante-esqne 
Underworld, a Hell where he 
meets up with the dead and 
chooses to escape, only to 
emerge Into nuclear holocaust. 
Heller has attempted nothing 
so bold, and fails, because, in 
contrast with the sustained 
comic satire of Catch-22, in 
Closing Time he lurches 
between realism and surreal- 
ism with only the certainty of 
ever-closer death, for individu- 
als as well as for our world, to 
hold them together. “I'm well 
into my sixties and we’re into 
the nineties, and this time I'm 
beginning to feel... that this 
time things are beginning to 
come to an end." 

Incidentally, we are told 
what happened at t be ending 
of Catch-22. After the Chaplain, 
at Nately's funeral, saw the 
vision of a naked angel in a 
tree, Yossarian mho was in 
the tree) ran away from the 
war, he was caught, sent home, 
and promoted to Major because 
the Air Force didn't want a 
fuss. “‘I didn't get far. I 
couldn’t even get to Rome*. 
‘You didn’t escape there? In a 
little yellow raft?' ‘That hap- 
pens only in the movies . . ” 


G ore Vidal still has 
the wonderful 
knack of hitting the 
nail on the head. 
All's Fair, he wrote in the New 
York Times, “is a him-and-her 
comedy worthy of early Hep- 
burn and Tracy.” The only 
question, with that incompara- 
ble film couple no longer avail- 
able. is who gets to play Mary 
and James; his suggestion - 
and not a had one - is Susan 
Sarandon and John Malkovich. 

Even by political standards, 
it might be a messy movie to 
make, because of its lack of 
good and bad guys, happy or 
sad endings and clear-cut plot 
lines (nothing could be that 
clear in 1992 with Ross Perot 
jumping up and down every 
other month). But Mary 
Matalin and James CarviDe. 
with the assistance of very pro- 
fessional writing help, have 
managed to produce a book 
mostly about the 1992 presiden- 
tial campaign and somewhat 
about their own love aflhir that 
satisfies political junkies with- 
out ever becoming maudlin or 
excessively self-congratulatory. 

She is the Chicago native of 
Croatian descent, who converts 
to conservatism early and rises 
steadily in the Republican 
party political apparatus to the 
position of political director 
and deputy campaign chief for 
George Bush. She has a temper 
and a tongue and is now, natu- 
rally. a TV talk show host. 

He is the “ragin’ Cajun” 
from Carville. Louisiana, some- 
time drop-out. sometime 
Marine and sometime lawyer 
who had managed many more 
losing pampaigns than he had 
won until Pennsylvania. 1991. 
when he directed his Senate 
candidate from a 47 point 
deficit to a ten point win over 
a very well known Republican 
Former governor. That brought 
him to BUI Clinton's attention 


ALL’S FAIR: LOVE, 
WAR AND RUNNING 
FOR PRESIDENT 
by Mary Matalin and 
James Carville, with 
Peter Knobler 

Hutchinson £19.99. 493 pages 


and. eventually, to the 
position of manager of the 
Democratic presidential cam- 
paign. He has a temper and a 
tongue and is much in dpmanri 
on the talking head circuit, 
when not advising Clinton and 
too many other candidates to 
mention. 

Naturally they fell in love, 
sustained it throughout the 
campaign, mostly by rarely 

seeing each other but talking 
almost every night, and were 
®amed last year. She is a vis- 
ceral Republican, he a dyed-in- 


the wool Democrat, she was 
emotional about Bush and he 
about Bill and Hillary and both 
freely confess to loathing the 
other's party. James writes, 
charitably, “I always say I 
want the people I'm running 
ag a i ns t to catch the dap and 
die." 

The persona] likes and dis- 
likes of both - more in her 
case than his - keep the book 
going. Mary’s admiration for 
Lee Atwater, the 1988 Republi- 
can attack dog strategist who 
died of a brain tumour in 1991, 
is absolute, as is her contempt 
for John Summit former New 
Hampshire Governor and 
Bush's White House chief of 
staff until the end of 1991 ("the 

political acumen of a door- 
knob") 

Both are contemptuous of 
the press operating as a pack, 
regardless of their fondness for 


Individual backs. James says it 
takes the assembled heavies 
three minutes after an event to 
decide what is “the story... 
once the collective mind is 
made up it will not change . . . 
history gets created in three 
minutes; don't miss it; if you 
get there late, you're dead." He 
is not wrong, and not only in 
the US. 

Working in the thick of a 
presidential campaign is 
mostly mechanical, often off- 
the-cuff. and leavened, or sul- 
lied, by reactive dirty work. 
Mary is delighted when finally 
the Bus hies take aim below 
Clinton's belt, to which she 
adds with a series of vicious 
attack faxes to the media, for 
which she is unrepentant. 
James is generally more forgiv- 
ing. After all, it was his slogan 

- “it’s the economy, stupid" - 
that in the end made Clinton 
president, and he is still a 
political consultant 

The confection of the book, 
alternating monologues, some- 
times /a ^-conversations, 
arranged roughly chronologi- 
cally, works better than it 
sounds. There may have teen 

- and will be - more profound 
books on the 1992 campaign, 
but this has an honest ring. No 
more so than when James 
writes “so little of this stuff is 
contrived and so much acci- 
dentaL So little of it is Machia- 
vellian and so much is actually 
human.” And it produces a 
president. 


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Dreams, demons and a 
rare talent to disturb 

Annalena McAfee talks to Ian McEwan about his first book for children 




I ncest, bestiality, cross- 
dressing. murder and 
dismemberment are not 
the traditional stuff of 
children’s literature 
But when novelist Ian McEwan 
turns his attentions to younger 
readers, speculation is inevita- 
ble. One newspaper has 
already referred to “a sex 
scene" in The Daydreamer, 
McE wan’s new collection of 
short stories for children. This 
scene, it transpires, describes a 
single, imagined, and entirely 
nan-incestuous, kiss. 

“You see the problem of my 
reputation," says McEwan, 
whose early preoccupation 
with extremes of human 
behaviour once earned him the 
soubriquet Ian Macabre. “I sup- 
pose it’s my own fault ” he 
says wryly. Tm sure The Day- 
dreamer will get poured into 
the mould somehow." 

This reputation as the ele- 
gant chronicler of polymor- 
phous perversity has its posi- 
tive aspect Since his collection 
of short stories First Love, Last 
Rites was published nearly 20 
years ago, attracting critical 
acclaim and revulsion in equal 
measure, he has consolidated 
his position as one of Britain's 
most original and successful 
writers of fiction - novels and 
screenplays - and acquired the 
conc omitan t trappings, includ- 
ing homes in Oxford and 
France. 

The down-side includes 
incessant requests from Holly- 
wood for scripts about serial 
killers. "Their sheep-like imagi- 
nation angers me. They all 
want to do the same thing . All 
the plots involve the system- 
atic wiping out of attractive 
young women. It's so easy to 
do on screen." 

Hollywood is still a sore 
point after the debacle over 
The Good Son, in which his 
original script about a psy- 
chotic child was “put through 
the mincing ma chin e" follow- 
ing the interventions of Mac- 
aulay Cu lion's father. “It's a 
terrible film. Don’t ever go and 


see it" he says, before recall- 
ing that it was banned in 
Britain following the Jamie 
Bulger murder case. 

McEwan’s decision to 
embark on his first children’s 
book marks, in a sense, a 
return to basics. 'T had wanted 
to write short stories again for 
some time. This was a way of 
tricking myself into it.” 
Although The Daydreamer 
(Cape £8.99, 96 pages) is h is 
first work for children, child- 
hood has been a constant 


fa Bure of imaginat io n’ 

theme in his novels, from The 
Cement Garden, a tender story 
of forbidden sibling love and 
unlawful burial, to Black Dogs, 
an exploration of the conflict 
between science and soul, in 
which the orphaned narrator 
states that looking after chit 
dren is a way of looking after 
yourself: 

The protagonist of The Child 
in Time, devastated by the 
abduction of his own child, is a 
writer who finds that, by some 
accident, his first novel is 


humiliatingly categorised as 
children's literature. McEwan 
enjoys the irony. “Yes, he 
earned so much money with 
his book that be generated an 
enormous tax bill which made 
it inevitable that his second 
book was for children. I was 
wondering if I was about to 
just become a children’s book 
writer. But I think I've escaped 
that fate by coming to it late." 

The Daydreamer represents 
the fulfilment of a promise to 
his li-year old stepdaughter 
Alice, who bad askftd him to 
write some of the stories he 
had made up for her on holi- 
day. The stories have had a 
lengthy gestation - Alice is 
now 22 - an d went through 
several changes and refine- 
ments in the re-telling to his 
other step-daughter Polly, now 
24, and his sons William, 11, 
and Gregory, 8. “I inscribed 
Alice's copy saying, ‘sorry .it’s 
late’. She said she was per- 
fectly pleased to have it at any 
time." 

The collection is also a cele- 
bration of the imagination, of 
waking dreams, “that thing 
teachers are always telling you 
off about but is a vital part of 
everyone’s inner noise." The 
theme of the book is transfor- 
mation and exchange and the 
mood is in turns elegiac, dis- 
turbing (though, pace Holly- 
wood, no more so than many 
favourite fairy tales) and sub- 
versively funny. 

Peter, the central character, 
swaps places with the family 
cat; subsequently becomes a 
baby for a day (featuring cross- 
dressing, though transgenera- 
tional rather than gender); 
erases his tiresome family limb 
by limb (dismemberment, 
albeit bloodless); and is set 
upon by a pack of disaffected 
dolls (more dismemberment, 
pictured right). The language 
is spare but finely wrought and 
every story, accompanied by 
Anthony Browne's delicately 
menacing black and white 
illustrations, has the haunting 
quality of a rfawric, 


“I don't want to sound pomp- 
ous," says McEwan. “But I 
think it is a crucial part of 
one’s sanity to imagine things 
other than they are. The abil- 
ity to imagine yourself as 
someone else must be at least 
part of the basis of morality. 
Behind cruelty must lie a fail- 
ure of the imagination, of 
empathy." 

The switch of focus from 
adults was not difficult “My 
impression of conversations 
with my children is that there 
is nothing you can't talk to 
children about short of VAT 
and income tax returns. There 
are clearly disturbing things I 
wouldn't want to dismiss with 
them, but they would certainly 
be horribly interested.” 

He cites the success of Roald 
Dahl’s gleeful misanthropy as 
evidence of children's fascina- 
tion with the proscribed and 
the nasty. “Everyone else was 
writing stories encouraging 
children to have correct atti- 
tudes, especially in the Seven- 
ties. A lot of children's books 
were shockingly condescend- 
ing and didactic - improving 
books encouraging the right 
attitudes about gender and 
race. The attitudes themselves 
were fine hut if novelists want 
to push values then I think 
they should write moral 
tracts." 

McEwan also defends the 
derided Enid Blyton. whose 
stories enlivened his own 
childhood, and who incurred 
the contempt of the orthodox 
moralists of the Seventies. 
“They were all marvellously 
ridiculous stories. Each sum- 
mer holiday a gang of kids 
would disrupt an international 
conspiracy of villains with 
dogs, picnics and ginger beer.” 

Any thin g that gets childre n 
reading, he maintains, is 
worthwhile. “Mien I see my 
children excited by a book it's 
a real high: that crossover 
moment when children don’t 
move their Ups when they read 
and they're seeing something 
unfolding in their head. Planes 


could be crashing, heroes could 
be macheting their way 
through jungles, but all there 
is is silence and the sound of 
turning pages. That’s the 
moment when a child has a 
private life." 

McEwan does not, however, 
subscribe to the dewy-eyed 
view that childhood is an Eden 


from which we are all brutally 
expelled. In The Daydreamer’s 
final story, Peter, on holiday 
with his family, has the grim 
realisation that one day he 
must leave the group that runs 
wild on the beach and join the 
group that simply sits and 
talks. Overnight he becomes 
an adult, has that first kiss 


and, later reverting to boy- 
hood, comes to realise that 
there are adventures ahead 
after alL 

“I wanted to show that being 
an adult can be fun too,” says 
McEwan. VAT, income tax 
returns and the limited imagi- 
nations of Hollywood produc- 
ers notwithstanding. 






* 





Nostalgia 
with panache 

Antony Thorncroft reviews 
' Only the Lonely’ 


T he Big O is not some 
nameless horror (oh, 
perhaps it is) but the 
pseudonym of Roy 
Orbison. who made a career 
out of proving that life copied 
art Orbison sang melancholic 
ballads about loneliness and 
loss, and sang them even more 
fervently when tragic acci- 
dents wiped out first his wife 
and then two of his children. A 
career slump did not make him 
laugh much either. 

But such traumas provide an 
ideal centrepiece for yet 
another rock-biog musical. We 
start, naturally, at Orbison’s 
f unera l - be died or a heart 
attack aged 52 - and are soon 
into one of those “why, oh, 
why" scenarios, with son Wes- 
ley asking Roy’s best friend 
“what sort of man was 
daddy?", and hanging around 
2Vi hours for the answer. 

Actually Orbison was a very 
simple man. He bad an amaz- 
ing voice, described once as 
sounding like “the slow fell of 
tear drops”, and minimal per- 
sonality. On stage he hid 
behind dark glasses - a wise 
move since he looked like a 
Halloween pumpkin with the 
worst haircut in the world - 
and never spoke to his audi- 
ence. So naturally Bill Ken- 
wright’s much worked-over 
production concentrates on the 
songs, all 40 of them. 

The songs are great, from 
the inevitable “Only the 
Lonely" to the unlikely “Bora 
to Run” (Springsteen was a 
great Orbison ton), and they 
are enthusiastically performed 
by one of those bands of fine 


JOSEPH’S'S 

IOSPICE 

HACKNEY. LONDON ES 4$A 
uui 

i many arrive as 
gent, uvary of pain 
rrM of the unknown, 
ey gladly stay as 
nds, secure in the 
:ing warmth, fortified 
hemhed w the end 
j the help of your 
graceful gifts- 
hank yitu kindly 
in their behalf, 
later Superior. 


musicians who go to pieces 
when asked to play cameo act- 
ing roles. 

Still, it hardly matters with 
Larry Branson as Orbison. 
Branson is a Canadian who 
has built a career as a Roy 
Orbison lookalike. The resem- 
blance is uncanny, and the 
voice is not bad either, fine for 
the low notes and the vibrato, 
a bit rough in the upper 
reaches. 

Of course just before his 
death Orbison had been redis- 
covered and was working with 
Bob Dylan, a suitably tragic 
finale. Rock musicals always 
follow identikit plots of merce- 
nary managers, abandoned 
wives, marriage to one night 
stands, and the inevitable cir- 
cles of success, failure, success. 

Only the Lonely is as good an 
example as any, and will 
please the middle aged with 
fond memories and the young 
who like a good weep. Orbison 
was always popular in the US 
and, in his easy going way, he 
did not take umbrage when on 
his first headliner tour he was 
given the Beatles as life sup- 
porting group; he proved putty 
in the hands of Brian Epstein, 
who switched the billing. 

Such is the stuff of modem 
drama. Catherine Porter is 
suitably anguished as wife 
Claudette, who inspired a big 
Orbison hit and whom he mar- 
ried twice. Among the welter 
of quick impressions from the 
multi-parted cast, Anne Smith 
was a notable Dusty Spring- 
field. There is little insight, or 
subtlety, in the show but it 
delivers nostalgia with an 
agreeable panache. 


Piccadilly Theatre 
(071 369 1734) 



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An uncanny resemblance! tarty Branson (fro n t) as Roy Orbison 


tsmutuur 


Anarchy versus 
German romanticism 


T he South Bank has a 
multi-art “Deutsche 
Romantik” festival in 
train now, ambitious 
but so broadly focused as to 
risk losing the bird-in-hand. It 
began on Thursday with a 
London Philharmonic concert 
Beethoven's Fifth and Wag- 
ner’s Wesendonk Lieder, very 
proper choices, but also Hans 
Werner Henze's Heliogabahis 
Imperaior (from 1972, revised 
in 1986). 

The best excuse for that was 
that it prompted an introduc- 
tory speech by Henze himself, 
who compressed an intelli- 
gent, soulfully Left-biased 
diagnosis of German romanti- 
cism into some ten minutes. 
G& (or DR, if you prefer) was a 
matter of reclaiming German 
folksong and its artless native 
ways; of revelling in the Ger- 
man Landschaft, in Weber’s 
hunting-horns and simple, 
singable airs, and in Schub- 
ert’s discovery of naive young 
millers their maids. What 
came later, Henze told ns, was 
tragically adulterated by ideol- 
ogy and .nationalist propa- 
ganda. 

Wagner’s name was never 
actually mentioned, nor tbe 
fact that subsequent musical 
developments came from Aus- 


trian composers rather than 
German ones. By implication, 
Henze’s own Heliogabahis 
must have been meant as a 
celebration of the “true" 
Romantic tradition - sexual 
liberation and happy anarchy, 
as it turns out, with no politi- 
cal intent whatsoever. One 
might mistrust that. Henze’s 
gloirc et misiire have always 
been indissoluble from his 
extreme sensitivity to popular 
(student). political phases. 

Anarchical liberalism was 
fine for Woodstock, but it 
soured with Kent State, Alta- 
mont and the dull fate of Sid 
Vicious. Heliogabahis reaches 
back to an imagined hedonist 
past tbe IS- year-old boy- Em- 
peror makes his sumptuously 
exotic entrance, as reported by 
the ancient scribes, initiates 
three years of comprehensive 
polysexual debauchery (mostly 
on ravished, sighing strings) 
and is then brutally assassi- 
nated by the Praetorian 
Guard. That was not the kind 
of thing that Schubert or 
Weber had in mind. 

As a musical construction, 
Henze’s Heliogabahis struck 
me this time as indefatigably 
colourful but thinly stretched. 
There are ritual post-echoes of 
his 1965 Auden opera The Bas- 


sands - not of its androgynous 
hero Dionysus, but of tbe 
deadly ritual itself - at the 
start and finish. In between, 
with a spate of instrumental 
solos (for tbe young Emperor’s 
newly appointed senators: 
“children of love, rough-hewn 
but hearty”) Heliogabahis tries 
on a variety of just-post- ’60s 
dress: silky Messiaenic tone- 
dusters for the strings, bird- 
calls and learned two- or 
three-note effects from solo 
winds, some improvisation, 
some frank theatrics. It lacks 
any persuasive through-put. 
Fun, but not much cop. 

Franz Welser-Mfist con- 
ducted Henze with self-effac- 
ing flair. His Beethoven 5 was 
disconcertingly swift, without 
any of the time-honoured rhe- 
torical pauses, but coolly alert 
and vital. For the five Wesen- 
dcmk-Lieder, of which Wagner 
orchestrated only “Trfiume", 
he recreated some plausible 
Wagnerianism. The soprano 
Amanda Roocroft found her 
expressive way Into these 
songs rather well, without 
convincing me that they 
require anything less than the 
grand, steady depths that a 
fine mezzo rgn w»mn«niii. 

David Murray 


Camus on revolution 


I t Is an excellent idea to 
revive The Just by Albert 
Camas in the mid-1990s - 
the kind that one might 
have hoped would have arisen 
in the Royal National Theatre. 

The play is based on the 
abortive attempt at Russian 
revolution in 1905 when the 
Grand Duke Sergei Alexan- 
drovitch was assassinated. Yet, 
written in the late 1940s, it is 
really about the debate within 
the French left how tor should 
you go in supporting Stalinism 
(or any party), right or wrong? 
How tor should you stick to 
revolutionary violence if you 
believe that the ultimate end is 
benign? And, if you have to 
assassinate children along with 
the Grand Duke, for how long 
do you believe that the end jus- 
tifies the means? 

Those are old questions. 
They do not necessarily 
become less interesting with 
the collapse of communism. As 
thiq production at the Camden 
Studio Theatre is clever 
enough not to stress overtly. 


there was quite a lot of Stalin- 
ism, and violence for its own 
sake, in the IRA. 

So The Just fe both a period 
piece, historically fascinating, 
and stffl just about topical The 
trouble fe that Camus, for all 
his intellect, was not much of a 
playwright. He thought, as was 
the French fashion of the time, 
that the theatre could be used 
to debate ideas without taking 
much account of character, 
feeling, plot or variety. The 
Just has the touch of a seminar 
on moral philosophy. 

Yet it is a better piece than I 
remembered. Occasionally - 
when, for example, we are 
waiting to hear whether a 
shooting takes place - there is 
drama. And the ideas under 
discussion can hardly be dis- 
missed as trivial. A relatively 
young audience at the Camden 
Studio seemed to find them riv- 
eting. 

It is also always possible to 
make an unexpected character 
come to life. The example here 
is Skouratov, the chief of 


police, played by Eldridge 
Adolfo. I doubt if even Camus, 
who was clearly a subtle man, 
would have seen him as the 
most enigmatic figure in the 
piece. But that fe how he fe: a 
civilised man trying to pre- 
serve order in an unstable 
state. An unusual amount of 
sympathy also goes to tbe 
Archduke's family; Camus was 
a bit more radical than that 

Some of this interpretation 
may be put down to the acting. 
Those who play the old order 
are better performers than 
those who seek to launch the 
revolution. Still perhaps that 
too, is deliberate: we are all 
conservatives now. 

This revival is directed by 
Kate Schaffer as part of 
Grande Designe Theatre Com- 
pany. It is a reminder to more 
established theatres that there 
are old texts worth looking at. 

Malcolm Rutherford 


Camden Studio, Offstage Book- 
shop, NW1 (071 916 4040). 


) 


) 









mg data for the monitoring oi targets, ann uie icjt mu uniiaiing ui mmb pocnneuig. 





XXII WEEKEND FT 


FINANCIAL, TIMES WEEKEND OCTOBER 1/OCTOBER 2 1994 



The flame of 
modernism 
still burns 
in St Ives 

William Packer admires the work of 
Patrick Heron and Terry Frost 


T he ter western tip of Corn- 
wall in the 1950s was 
deemed to be the very epi- 
centre of English modern- 
ism, with Ben Nicholson 
and Barbara Hepworth the presiding 
geniuses and, around them, any num- 
ber of bright young things, a true 
community of painters and sculptors 
of all kinds. Well, art history never 
comes quite so simple and pat as that. 
While it was true that artists were 
there and active in numbers enough 
to constitute a distinctive school, 
there were so many more elsewhere, 
and no less significant and distin- 
guished. And of course the moment 
passed. The school of St Ives, such as 
it was as a major force in British art, 
dispersed: some of the artists moved 
away, some died, and the little town 
soon resumed its status as an artists’ 
colony of the quainter sort. 

But one or two artists r emaine d to 
keep the flame of modernism alive. 
Barbara Hepworth stayed on until her 
death in 1975, and there, on their 
respective hilltops to the north and 
south, two of the principal and truly 
representative artists of the school 
still are - Patrick Heron at Eagle's 
Nest, high above Zennor to the west 
of St Ives: Terry Frost on his hill 
above Newlyn. looking out over the 
bay to Saint Michael's Mount. By 
coincidence they both have exhibi- 
tions concurrent in London - Frost, 
indeed, has severaL 
The new works by Heron constitute 
a remarkable testament to his con- 
tinuing vigour as a painter at 74, for 
they were all done this year and some 
are extremely big. And to see them 
shown to such advantage in Camden's 
large and splendid galleries is to have 
borne in on one the force of the old 
truth, that all abstract painting is a 
kind of landscape. In this. Heron 
indeed consciously echoes le bourgeois 
gmtilhanme himself, in declaring at 
last that he has been a landscape 
painter all the time. This, from an 
artist as committed as any in his time 
to the painterly purism of the colour, 
field and the integrity of the surface, 
one of the first to reduce his work to 


terms of the simplest gestural stripe, 
is a nice twist And we can see what 
he means. 

For from his Eagle's Nest he looks 
down on the world as upon a map, 
alike to the nearer world of the gar- 
den with its borders, beds and ter- 
races. and further to the ancient 
patchwork and tracery of the Iron-Age 
fields and hedges for below, and the 
sea beyond. Suddenly the familiar 
eccentric curves and filled-in blobs 
and hiocks of his later work take on 
extra and unsus pected meaning and 
resonance. But now the filling-in has 
gone, and the colour shifted from the 
spread mass of paint to the actual 
line, and a line that is now febrile, 
edgy, nervous. Close-up we see only 
the stuff of the paint and the mark 
and stroke of the brush: stand back, 
and we discover again the spidery, 
taut drawing of Heron's work of more 
than 40 years ago, before abstraction. 
Thus the circle of a true career com- 
pletes itself: 

Terry Frost by contrast makes the 
same connection, but by open demon- 
stration rather than by implication, 
showing the new and the old together. 
And he has always openly admitted, 
indeed celebrated, the initiating stim- 
ulus of the visible world, whatever his 
apparent commitment to abstraction. 

He too over the years - he is now 79 
- has developed his own vocabulary 
of image and symbol, a personal her- 
aldry of sun and moon, crescent and 
spiral registered ever more clearly in 
unmoderated reds and blacks, blues 
and yellows. To see Us newest work 
beside that of the 1950s and early 60s, 
is to be reminded both of the sources 
of its imagery, and of its evolutionary 
nature. 

For though the. colour was more 
muted and earthy then, the colours, 
as it were, of that whiff of fish and 
seaweed that catches the throat at the 
quay-side, there still are the bright 
boats rocking in the harbour or 
beached higgledy-piggledy as the tide 
goes out, the seaweed on the sea wall, 
and the cables running out across the 
sand. But such things are not 
described in any documentary sense. 



but rather hinted at, teased out of the 
Imagination by inference and oblique 
suggestion, conjured out of simple 
shapes set in rhythmical conduction. 
It is good to see such impressive work 
again, after so long. 


■ Patrick Heron: Big Paintings 
1994; Camden Arts Centre, Arkwright 
Road NW3, until November 13. 

■ Terry Frost early and recent 
work: Mayor Gallery, 22a Cork Street 
Wl, until October 28. Terry Frost: 


works on paper; Coram Gallery, 
10 Lambs Conduit Passage, Red Lion 
Street WCl, until October 29. 
Terry Frost Then & Now; Bel grave 
Gallery, Engiands Lane NW3, until 
October 28. 


A momentous ‘Salome’ in Leipzig 

Since unification Udo Zimmermann has given the Opera a distinctive profile , says Andrew Clark 


F ive years after the foil 
of Communism, Leip- 
zig has emerged as 
east Germany's oper- 
atic success story. Unlike 
numerous counterparts in west 
Germany, the Leipzig Opera 
has not allowed financial pres- 
sure to sap morale or artistic 
vitality. Seizing its new-found 
freedom, it has staked its claim 
to an international reputation 
with a string of notable pro- 
ductions, the latest of which is 
Salome. 

The Leipzig Opera spent 
most of the Communist era out 
of the international gaze. With 
standards that were no more 
than provincial, it was content 
to play second fiddle to the 
world-renowned Gewandhaus 
Orchestra. German unification 
brought job losses and a fall in 
audience - but there has been 
no navel-gazing. Thanks to 
dynamic leadership by the east 
German composer Udo Zim- 
mermanu, the company has 


emerged leaner, fitter and with 
a keen sense of purpose. 

This has been achieved 
against considerable odds. The 
DM73m <£30m) budget is con- 
siderably less than Dresden, 
and will almost certainly be 
cut in the coming year. As well 
as a full opera and ballet pro- 
gramme, the company runs a 
separate theatre devoted to 
operetta - the only German 
opera house to do so. The Leip- 
zig public is conservative and 
Its politicians want value for 
money. 

That has not stopped Zim- 
mermann taking risks. Since 
his arrival in 1990, the pro- 
gramme has been dominated 
by 20th century operas and 
unconventional directors. In 
his first two seasons, there 
were strong productions of 
Busoni's Doktar Faust and Lig- 
eti’s Le grand macabre. For its 
300th anniversary last year, 
the company laid on eight 
weeks of ambitious program- 


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|Fri TOMFOOLERY BY TOM LEHRCR: A SATIRICAL REVIEW 

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ming, including Stockhausen's 
Dienstag aus Ucht and a stag- 
ing of Boris Godunov by the 
film director Istvan Szabo. 
Leipzig basked in the publicity 
this generated. 

After a pause for breath last 
season, the company has 
returned to the offensive. Sal- 
ome had a hand-picked cast of 
international singers, most of 
them undertaking their roles 
for the first time. The next pro- 
duction Is Schoenberg's Moses 
und Aron, to be staged by the 
Hungarian- Jewish dramatist 


George Tabori. The radical east 
German producer Peter Ron- 
witschny will tackle Tchaikov- 
sky's Onegin in January, and 
Leipzig hosts its first Festival 
of Contemporary Music Thea- 
tre next March. Ziinmermann 
is now negotiating with Covent 
Garden to co-produce Henze’s 
Das vemdene Meer. 

Without losing sight of 
bread-and-butter repertoire, 
Zimmermann wants to give 
Leipzig a distinctive profile. He 
says the most successful opera 
houses are not necessarily 


those with the biggest budget 
“You can't make sensible judg- 
ments by comparing DM73m 
here with DMLIOm there. What 
counts is the amount of fan- 
tasy and innovation you see on 
stage. We want to show that in 
art, as in business, Leipzig is a 
city which is open to the world 
- that we are catering for a 
European public as well as the 
local taxpayer.” 

Salome had an incontrovert- 
ible grandeur - the kind of per- 
formance that generates an 
enthralling momentum and 



Inga Nletesn (seated) and Anja Silva: unfwgettabki as Salome and Henxfiaa ***»« 


transforms one's view of a 
work. It had the advantage of 
the Gewandhaus Orchestra in 
full cry, and a conductor - Jiri 
Rout - who was in complete 
command of the score and of 
the forces in front of him. 
Rarely does one bear so many 
unforced instrumental subtle- 
ties combined with such an 
effortless surge of sound, all 
placed at the service of the 
stage drama. 

Nikolaus Lehnhoff updated 
the story to the present - but 
unlike so many other Oil man 
producers who adopt the same 
technique, he offered fresh 
insights, while preserving the 
opera's fundamental dramatic 
relationships. Here was a deca- 
dent ruling order in the pro- 
cess of collapse - a timeless 
portrait with clear echoes of 
our own late-20th century 
world. The action unfolded in 
the backyard of a concrete pal- 
ace. Herod, his family and 
courtiers wore chic evening 
dress. Jochanaan was a long- 
haired preacher, guarded by a 
half-naked muscle-man who 
doubled as the angel of death. 
The designs by Hans-Martin 
Scholder and Jorge Jara 
included a few kitschy details, 
but each character was skil- 
fully drawn, and the clima ctic 
moments were targeted with 
bull's-eye accuracy. 

The Danish soprano Inga 
Nielsen was an unexpectedly 
strong Salome. The voice may 
not be big, but it has a pure 
timbre and ample penetration. 
Her pacing was immaculate - 
the final soliloquy was a umr 
de force - and she built the 
Dance of the Seven Veils into a 
powerful crescendo, whipping 
Herod with Jewels before strip- 
ping as she withdrew. With 
short, sleeked-back hair and an 
imperious manne r that spoke 
volumes. Anja Sifia made an 
unforgettable Heredias, while 
Jacque Trussel's suave Herod 
was a refreshing change from 
the usual character-tenor cari- 
cature. As Jochanaan, Falk 
Struckmann confirmed his sta- 
tus as Germany's leading 
younger-generation bass-bari- 
tone. Christopher Ventris's 
Narraboth and Annette Mar- 
kert's Page - not to mention a 
brilliant quintet of Jews - 
were a tribute to the quality oF 
the home ensemble. 


Song and 
celebration at 
the Wigmore 

John Allison on Hvorostovsky , 
Gritton and the Vogler Quartet 


I t has been a busy week at 
the Wigmore Hal], 
fulfilling for the listener, 
not without 
complications for the 
management Dmitry 
Hvorostovsky stepped in to 
save Tuesday’s recital when 
the American diva June 
Anderson cancelled her 
eagerly anticipated 
appearance - in the process 
breaking the tyrany of IMG 
Artists whose singers were to 
have dominated the whole of 
the Wigmore’ s International 
Festival of Song. 

The young Russian baritone, 
no stranger to London, was 
impressive. His special 
achievement was to maintain 
interest in a programme 
predominantly dark and 
melancholy (only one song in 
the entire evening, 
Rakhmaninov’s “Spring 
Waters", was at all uplifting;. 
Hvorostovsky is the definition 
of a “soulful" Russian singer, 
with dark, burnished tone, 
beefy top notes and a strong 
lower register. His voice is 
spread so seamlessly that his 
performances can lack variety, 
but here he found the measure 
of each song in his 
all-Rakhm anino v first half, 
right from the lilting lines of 
the opening “You, my field”. 
The pianist Mikhail Arkadiev 
proved an equal partner in 
songs like the intimate “How 
fair this spot”, in which voice 
and piano are evenly 
integrated. 

After interval, the mood got 
progressively darker, through 
two of Shostakovich's Spanish 
Songs and the “Fragment” 
from his Four Monologues, to a 
dramatic account or 
Mussorgsky’s Songs and 
Dances of Death. Hvorostovsky 
has sung them widely, in 
concert and on CD, and his 
interpretation has deepened: 
slow, deliberate tempos 
underlined the nightmarish 
“Lullaby”, and be found tbe 
malevolence In "Trepak” 
before concluding with a 
terrifyingly intense 
“Commander-in-chief". As a 
generous - though not very 
idiomatic - gesture, he 
switched in his encore to 
English for Purcell's “Music 
for a While”. 

On Thursday it was tbe turn 
of the young British soprano 
Susan Gritton. winner of this 
year’s Kathleen Ferrier 
Competition, here giving the 
London recital that is part of 
the prize. Her programme - 
Mozart, Schubert, Strauss, 
Britten, Falla and the 
premiere of two songs by 
Roderick Williams (b. 1965) - 
revealed a useful versatility: 
in her opening Mozart concert 
aria (“Voi avete un cor 


fedele”. E. 217), Gritton's 
sound was bright and 
interesting, and her voice 
grew as the evening 
progressed. She caught the 
intimacy of her Schubert 
selection (helped by Eugene 
Asti's crystal dear 
accompaniments), and found 
the lustre demanded by her 
Strauss group: “Rube, meine 
Seele” was perhaps the 
highlight of the evening. 

Words are not Gritton's 
strength. In her German songs 
there were distracting, 
over-exaggerated consonants, 
and even W.EL Auden's lines 
in On this Island came across 
intermittently. The soprano 
caught the mood of Britten’s 
“Nocturne", but the 1930s 
idiom of “As it is, plenty" 
eluded her. Roderick 
Williams's Two Songs to Cope 
(Wendy Cope settings) were 
effective in their way - 
Gritton was playful in 
“Reading Scheme” - but his 
mnsic would not have 
challenged the “Hecklers". 
Gritton coloured Falla’s Seven 
Spanish Folksongs well. 

The previous evening 
brought Michael Collins as 
soloist in “The Romantic 
Clarinet”, the second concert 
in the Wigmore Hall's 
Celebration of the Clarinet, a 
series devised by Collins 
himself. We heard two works 
central to the instrument’s 
19th-century repertory. 
Clarinet Quintets by Weber 
and Brahms. Weber’s was 
written for Heinrich 
Baermann, the leading 
clarinettist of his day, and tbe 
programme also acknowledged 
him by including his Adagio. 
Collins, joined by the Vogler 
Quartet and the double bassist 
Mary Scully, poured out a 
stream of marvellously even, 
melting tone. 

Tbe Weber gave fuB rein to 
Collins's expressive powers, 
and also scope for buoyant 
humour. The work is like a 
chamber concerto, and rapport 
between clarinet and the 
"orchestra" of four strings 
was excellent; this was music 
making of the highest order. 
The Brahms, in which all five 
players caught the lyricism of 
the Adagio and the 
transparency of the sublime 
Andantino, gave the evening a 
warm, autumnal glow. 


The Celebration of the 
Clarinet continues at the 
Wigmore Hall. 


Chess No 1041: 1 Bd5+ Kh7 2 
Ba3! Rxa3 3 Rel Rxc3 4 Bf7 
RccS 5 Reel (5 Bxe8? RxeS may 
even lose) b5 6 Bxg6+ Kg8 7 
Bxefi RxeS 8 g6! b4 9 Rd6 and 
Rdfl wins. 



| The Official London Theatre Guide 

1 Supplied by The Sod 

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FINANCIAL TIMES WEEKEND OCTOBER 1/OCTOBER 2 1994 

TELEVISION 


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BBC1 


7M Lasate 7 25 New*. 7 JO Pin gu. tm Ham 

BatMtey. 746 Manana Mariam 

Abort tt» Hfth Muataoer. &ao 7hTrtel»Adv«v 

turM of Supwmsn. 0.15 Live and Kicking 

12.12 Weather. 

12.10 Grandstand. Introduced by Steve 
Rkter. Including at 12 l2o Footbafi 
Focus UEFA Cup round-up. IJJO 
Nows. 1.05 The BUPA Triathlon from 
Bath. 1-55 Racing from Chepstow: 
The ZOO Weatherby's ‘Newcomers' 
Series Novices Chase. Z10 Boring; 

Gwry Delaney v Arigoma Chlponda 

from York HaH. Bethnal Green. Z30 
Racing; The Z35 Free Handicap 
Hurdle. Z45 Boxing. 3.05 Racing: 
The 3.10 Mercedes Benz Handicap 
Chase. Z20 Gymnastics: The Bir- 
mingham Classic from the Nations 
Indoor Arena. 3.50 Football Half- 
Times. 4,00 Gymnastics. 430 Box- 
ing. 4.45 Find Score. Times may 
vary. 

B.15 News. 

S30 Regional Nows and Sport. 

S40 Steve Wright's People Show. New 
series. Offbeat chat show. 

5.10 Brace Forsyth’s Generation Game. 

Bruce Forayth and Rosemarie Ford 

host another edition of the fun-Med 
family game show. 

7.10 Cheiemge Anmka. Action-woman 
Anneka Rice is challenged to write a 
recipe book, then prepare a celebrity 
banquet. 

SUMS Casualty. Mike's depressed behav- 
iour gives rise to concern, and a cSs- 
turtoed patient causes trouble on the 
ward. Medical drama, with CUve 
Mantle. 

8-50 News and Sport; Weather. 

0-10 Film: Shattered. Premiere. A prop- 
erty developer, bearing physical wtd 
mental scars from a car crash, 
enlists the help of a private detective 
to help him remember his past 
Thriller, starring Tom Berenger and 
Bob Hoskins (1992). 

KU5 Match of the Day. Desmond Lynam 
introduces highlights of tiro top 
matches In the FA Premiership, plus 
goals from the day's other games. 

11.45 The Danny Baker Show. Fun, 

comedy and entertainment, featuring 
pop Impres a rio Malcolm McLaren, 
actor Timothy Spall and wrestfing 
enigma Kendo Nagasaki. Musk: by 
The Cranberries. 

1220 FHnr Tokyo Pop. A would-be New 
York rock star heads for Japan in 
search of feme and excitement 
Light-hearted drama, starring Carrie 
Hamflton and Yutaka Tadokoro 
(1988). 

2.10 Weather. 

2.15 Close. 


SATURDAY 


BBC2 


MO Open University. 1215 pm Rim: The Silent 

We. 

1*45 The Phil Stivers Show. 

2.10 Tbnewateh. Tribute to the thou- 
sands of British merchant seamen 
who braved the north Atlantic 
Storms and deacfly U-boats during 
the second worid war. 

3-00 An: The Naked Dawn. MbIo- 

drama, starring Arthur Kennedy as a 
fugitive tran robber who corrupts a 
farmer and his wtfa With Betta St 
John (1956). 

4.20 A Week to Remember. Rathe news 


4.30 Bowls: Intamatlonal Open. Doug is 
Donnelly presents coverage of this 
afternoon's semi-finals from Preston. 

6.00 TOTPZ 

6*46 What the Papers Say. The week's 
headline stories reviewed. 

BJ55 News and Sport; Weather. 

7.10 Developing Stories. Moving film fol- 
lowing an extended famfl/s attempt 
to leave a refugee camp In Malawi 
and return to thek village In war-tom 
Mozambique. Last In series. 

8.00 The Director's Ptac*. Proffle of 
French fflm-maker Bertrand Taver- 
nier. who accompanies his father on 
a tour of his home city Lyons, and 
reveals how soma of Ms best-known 
Alms, including The Watchmaker of 
St Paul, and Una Semafea de Vao- 
ances. have been influenced by the 
dry. 

0.00 Knowing Me, Knowing You - WHh 
Alan Partridge. 

BL30 Bteabotti R. Third part of the 

avrardMwfririlng drama chroMcflng the 
reign of Elizabeth L Following the 
death of the Spanish refer in the 
Netherlands, the French are anxious 
to form a new aNance and lead the 
rebels to victory. Starring Glenda 
Jackson. Ronald Hines. Robert 
Hardy, Stephen Munay and Bernard 
Horsfall 

11.00 The Moral Mazo. A penal debates 
topical dBe mma s. 

11-45 Fttm: Befbre the Revolution. 

BartofuccTs political satire about a 
young commtnst who falls under 
the influence of a Marxist school- 
teacher. Adriana Asti and Francesco 
BariB star (1964). 

1.30 Fdst Forward. 

2.00 Bowfs International Open. 

2 M Close. 


630 GMTV. 22S Whtfs Up Doc? 1130 lbs ITV 

Chat Show. 1230 pm The Utttest Hobo. 

1.00 ITN News; Weather. 

IJJfi London Today. Weather. 

1.10 Hfovtos, Games and Videos. 
Reviews of Keanu Reeves In Speed, 
prehistoric blockbuster Jurassic 
Park, with Sam Neifland Laura 
Dem, and In the Line of Fire, staring 
CQnt Eastwood 

1.40 WCW Worldwide Wrestfing. 

2.25 Life Goes On. 

320 Burke's Law. 

4JtQ Cartoon Time. 

4*48 ITN News and Results: Weather. 

5.06 London Today and Sport; 

Weather. 

530 Baywatch. A glamorous woman and 
her plain sister compete for Mitch's 
affections, white Matt confronts his 
paralysing fear of sharks. David Has- 
selhoff and David Charvet star. 

5.10 Qtarfiato re- The muscle-bound war- 
riors taka on contestant s from 
Cheshire, Nottnghomshfre, London 
and Taysida. 

7.10 Bflnd Date. New series. Cilia Black 
plays Cupid to another handful of 
romantics in the return of the popu- 
lar dating game. 

8.10 Fsmfly Fortunes. New series. Les 
Dennis invites the Munnis family 
from Northern Ireland and the Pflae- 
terars of Sheffield to compete for 
the £3,000 jackpot and a new car. 

040 ITN News: Weather. 

085 London Weather. 

OOO FBnc Taking Cara of Business. An 
escaped convict (James Belushl) 
enjoys a taste of life in the fast lane 
after finding an executive's Fikriax. 
WHh Charles Grocfln and Ann 
DeSafvo (1990). 

11.00 The Big Fight - Live! Steve 

Robinson v Duka McKenzie for the 
WBO Worid Featherweight tide. An 
R o senthal introduces ringside cover- 
age from Cardiff as the dfmtnutlve 
Welshman makes the fifth defence 
of his crown against the stylish Lon- 
don-based veteran. 

12.05 FHm: The Comeback. Drama, 
starring Robert Urich (1988). 

1.50 Love and War. 

22t0 Tow of Duty. 

3.15 The Big E. 

4.10 European Nine-Ball Pool Masters. 

5.05 BPM. 


CHANNEL4 


530 4-Tfli on View. 530 Ettffy Mooting. 946 BOtz. 

11 JO Gazzatta Football IteUa. 1200 Sign On: 

Newswatch. 1230 pm The Great MarathaJEngteh 

subtitles). 

1X0 Fibre Our Uttie Girl Sentimental 
drama, starring Shirley Temple as a 
precocious doctor's daughter who 
brings her estranged parents back 
together (1935). 

2.10 Racing from N ew ma rk et and 
Longehamps. From Newmarket: 

The 2.20 NGK Spark Plugs Quality 
Handicap, 255 Sun Chariot Stakes, 
335 Wlfliam HiU Cambridgeshire 
Handicap, 4.10 Jockey Club Cup, 
and the 4.45 NGK Spark Rugs Per- 
formance Nursery Hancfcep. From 
Longehamps: The 230 Prix Royal- 
lieu, 3.00 Prix Dollar, 4.00 Grand 
Criterium, and the 430 Prix du 
Cadran. 

5J)5 Bfookatdc; News Sunmary. 

630 Right to Reply. 

7.00 The People's ParSament. Special 
debate In which an audience of 80 
young people discuss whether cor- 
poral punishment should be rein- 
troduced in state schools, eight 
years after It was banned. 

8JX) Spirits, Ghosts and Demons. Frtm 
following the daughter of a Chinese 
schoolteacher as she travels to a 
town for the first time fri her Bfe. 

&20 Children's Express. The work of a 
special news service set up In Amer- 
ica in 1975, giving youngsters the 
chance to air their views on topical 
Issues by researching and writing 
features for the national press. Cam- 
eras follow 15-year-old Osiris and 
two 10-year-old reporters as they 
find out about a pflot scheme for 
young journalists In Britain and 
examine the worid of New York 
graffiti artiste. 

9.00 FHm: PTang Yang Klpperbang. 
Touching comedy drama set In 
1948, starring John Afoasdny as a 
14-year-old schoolboy fufl of roman- 
tic longing for his classmate. With 
Afisan Steadman and Abigail Crut- 
tenden (1982). 

1020 Film: Au Revotr Lea Entente. A 
CathoBc schootooy unwittingly 
betrays Ms Jewish friend during the 
Nazi occupation of France. Moving 
drama, starring Gaspad Manesse 
and Raphael Fejto (1988). (English 
subtitles). 

12.25 Late Licence. 

122S Herman’s Head. 

1.05 Let the Blood Run Free. 

140 Wax on Wheels. 

245 This b David Harper. 

US Packing Them in. 

240 Close. 


REGIONS 


ITV HEOKMS AS LONDON BXOCPT AT THE 

FOLLOWING 71HNS&- 

ANOUA: 

1230 Movies, Games and Videos. 135 Angfia 
News. 1.10 regal Mansers ireJyCar *94. 140 Mr- 
port -80 The Concords. (1978) 246 Knight Rider. 
536 Anglia Maws and Sport s.15 Cartoon Tima. 
256 Angfia Weather. 

BORDER: 

1230 Movies, Games and Videos. 1.05 Border 
News; 1.10 Get Wet 1.40 Nigel Mansers IndyCar 
94. 210 Future Cop. (TVM 1970) 23S COPS. 430 
&*»rera rs of Wrestling. 5. OS Border News and 
Weather 5.1 Q Border Sports Results. 


1230 America's Top 10, 135 Central News 1.10 
The M ureters Today. 140 Movies, Games and 
Videos. 210 SeaQuest DSV. 430 WCW Worldwide 
Wrestfing. 535 Central News 3.1 Q The Ceroral 
Match - Goals Extra. 855 Local Weather, 


1130 COPS. 1200 The [TV Chari Show. 1.05 
Channel Diary. 1.10 Best of British Motor Sport. 
1.40 The Htodenburg. (167 5) 246 Knight Rider. 
205 Charnel News. 5.10 Puffin's Raffles. 


1230 Spots. 1.05 Grampian Headtoaa 1.10 Tole- 
dos. 1-40 Bteanan toranhate. 2.10 Donnie Murdo. 
240 Cutm Cktime. 3-00 Zorro. 3.25 Nlgai Man- 
sefl's IndyCar *94. 355 Superstars of Wrestfing. 
6.06 Grampian Headlines 210 Grampian News 
Review. 216 Cartoon. LS5 Grampian Weather. 
UtANADA: 

1230 Movies, Games and Videos. 1.05 Granada 
News 1.10 Get WeL 1.40 Nlgd Mansefi's moyCar 
■94. 215 Future Cop. (TVM 1976) 335 COPS. 430 
Steteraiara of WnenSng 200 Grenada News 205 
franada Goals Extra. 

HTV: 

1230 Movies, Games and Videos. 1 35 KTV News. 
1.10 Nigel MnnsflU's IndyCar *94. 1.40 Spinning the 
Globe; 240 Cartoon Time. 230 The A-Team. 346 
Knight Rider. 205 HTV Nows and Sport 215 
Cartoon Time. 266 HTV Weather. 


1130 COPS. 1200 The [TV Chart Show. 135 
Marxian News. 1.10 Best of British Motor Sport. 
1-40 The Htndenburg. (1875) 3.45 Knight Rider. 
205 Moricfion Newa 215 Cartoon T>ne. 


1230 Extra Time. 136 Scotland Today. 1.10 Faith. 
Hope and Calamity. 1 AO Tateflos. 210 EBood raver. 
(1091) 245 Sons and Daughters. 4.15 Take Your 
Pick. 635 Scotland Today 235 Scottish Weather. 


1230 Movtea. Games and Videos. 135 Tyne Tees 
News. 1.10 The Fall Guy. 205 Carry On Regard- 
less. (1961) 245 Knight Rider. 205 lyna Tees 
Saturday 
ULSTER: 

1230 Movies, Games and Videos. 135 UTV Live 
News 1.10 Saturday Sport. 130 Scalawag. (TBT3) 
330 Knight Rider. 430 Superstars of Wre- ang. 
535 UTV Live News 210 Saturday SporL 255 UTV 
Uve News 


1230 Movies. Games and Videos. 135 Weatcoun- 
try News. 1.10 N^el Maraefl's IndyCar -94. 1.40 
The Last Day. (TVM 1075) 330 Cartoon Time. 345 
Dinosaurs. 4.15 The Mountain Bflca Show. 535 
Westcoumy News 255 Westcountiy Weather. 


1230 Movies, Gomes and Videos. 135 Calender 
News. 1.10 The FaS Guy. 235 Cany Cd Regard- 
less. (1961) 345 Knight Rider. 536 Calendar News. 
aiDSconifcW. 


SUNDAY 


BBC1 


7-30 D5y the Olnoeaur. 736 King GraenAngere. 
740 Ptaydaya. 830 Blood and Honey. 215 Break- 
fast with Frost 215 DecMons. 230 TWo to Ihe 
Day: The Story so Fsr. 1030 See Heart 1030 The 
French Experience. 1046 Easy Money. 1130 The 
B e vamh Hour. 

1230 CountiyHa. 

19.28 Weather for the Week Ahead; 

12L30 On the R e cord. An Interview with 

Shadow Health Secretly David Blun- 
kett 

1^0 EastEridera. 

230 FSm: Cotumbo: A Deatfiy State of 
Mind. Tha shamUng sleuth trails a 
psychiatrist who has dispatohed ftis 
lover's husband. Crime eframa, star- 
ring Peter Fsfit and George Hamil- 
ton. 

4.00 The Uon King. Bun John tfis- 
cussos the challenges of writing 
songs for Disney's latest blockbust- 
ing animated feature. 

4*28 Junior MastarchaL Antony Woman 
Thompson and Lee Chapman judge 
the culinary offerings of teenagers 
from Derby. Rochdale and the tsie of 
Maa 

436 The Great Antiques Hunt Contes- 
tants visit Bath, where they try to 
distinguish between real and repro- 
duction Staffordshire figures and 
identify period objects tn a Georgian 
house. 

640 The Clothes Show. Preview of next 
week's British fashion awards, a 
proAa of current Welsh designer of 
the year Toby Clark, and a review of 
new autumn styles. 

8.05 News. 

8-28 Songs of Praise. 

7.00 Lovejoy. The roguish antiques 
dealer is arrested for bugfery when 
a stolen painting Is discovered in his 
shop. Ian McShane stem. 

73(0 Birds of a Feather. 

SL20 Les Dawson: The E nte rtainer. Trib- 
ute to one of Britain's best-loved 
comedians. Inducting archive foot- 
age of some of his most memorable 
sketches and characters. 

8-50 News and Weather. 

0.10 Screen CXie: Mutter ki Mind. Psy- 
chotoglcaJ drama tracing the volatile 
relationship between a seductive 
therapist and a cynical poSce 
Inspector. Starring Charlotte Rampl- 
ing and Trevor Eve. 

103W Everyman. The controversy 

surrounding plans to bufid a new 
road to a Kara Krishna temple in the 
Hertfordshire village of Letohmore 
Heath. 

11.10 Internat io nal Bandog. 

11.50 Bowfcc International Open. 

12L40 WSather. 

12-48 Close. 


BBC2 


215 Open UntvnraKy. 210 Juniper Jungle. 225 
Bftsa. 040 Conan the Adwnbnr. 1030 What’s 
That Notoe? 1030 Grange H2 1035 Growing Up 
WhL 1130 Boy Cfty. 1145 The O Zona 1230 
Quantum Leap. 1245 pm Snowy River: The 
McGregor Saga 

1.30 Amazon The Flooded Forest. 

Anthony Hopkins narrates the first of 
two fflms exploring some of the 
remotest areas of the forest 

ZAO Bowls: International Open. Live 
coverage of the grand final from the 
Gu&d Hail, Preston, where the two 
surviving players are competing for 
a winning cheque of £10,000. 

5.15 Rugby Special. Hlghights of 
Gloucester v Both, plus news of 
other chfo matches in England, 
Scotland. Ireland and Wales. 

6.15 One Man and His Dog. Irish han- 
dlers Michael Kely, John Chadwick 
and Simon Moss compete In the 
second round of the prestigious 
competition from Buttermera. 

7.00 The Money Programme. Peter WU- 
son-Srrfth reports on how British 
business might react to the policies 
of a futwe Labour government and 
examines whether Traditional differ- 
ences have been reconciled. 

740 The Carte the Star. Tribute to the 
1960s Jansen Interceptor, a car 
combining Italian styling and British 
craftsmanship wtth American V8 
power. 

8.00 Placido Do mi ngo's Tates from the 
Opera. Behind-thoscanes footage 
of the acclaimed tenor preparing for 
hta titte rate In the Metropolitan 
Opera's production of Verdi’s Otella 

0.00 Monty Python's Flyfcig Circus. The 
dangers of high finance, and the 
finals of the Upper-Class Twit of the 
Year contest 

230 Reputations. Profile of legendary 
shipping tycoon Aristotia Onassls, a 
brilliant businessman who married 
the widowed JacqueSne Kennedy 
and predicted the Importance of the 
International oil trade. 

10J30 FHm: Colors. Violent thriller, starring 
Sean Pam aid Robert DuvaU as 
mismatched cops who experience 
the brutality of Los Angeles gang 
warfare first hand (1988). 

1230 Dennis Hopper. Portrait of the 

renowned actor, director and pho- 
tographer. who has become one of 
the most controversial characters on 
the American film scene. 

130 Imagining America. 

130 Close. 


200 GMTV. 200 Ths Disney Club. 10.15 Link. 

1030 Sunday Mattes. 1130 Morning Worship. 

1230 Smday Matters. 1230 pm Cramalc London 

Wtather. 

14M mi News; Weather. 

1.10 Walden. On the eve of the Labour 
Party Conference, Brian Walden 
talks to the deputy leader John 
Prescott 

2.00 COPS. 

2^0 MacGyvar. Private detective Mac- 
Gyver investigates a case of sabo- 
tage on the car -raring circuit 
Richard Dean Anderson and Patrick 
Wayne star. 

3-20 ram: The Pied Piper. Sixties singer 
Donovan plays the wandering min- 
strel who helps rid a town of rats. 
Chlkfren's fate, also storing Donald 
' Pteasence, John Hurt and Diana 
Dors (1972). 

5.10 Fattier Dowling Investigates. 

6.00 London Today, Weather. 

630 ITN News; Weather. 

630 Dr QuimMadMrw Woman. Mat- 
thew starts work at the local mine 
hoping to earn money for his future, 
but his fife is at stake when a 
cave-in leaves him trapped. Jane 
Seymour stare. 

7jao Heartbeat Nick searches for adop- 
tion files stolen from the counca 
offices, and pigeon-fancier Green- 
grass is accused of vandalising a 
falcon's nest 

830 You've Been Framed! 

9.00 London’s Burning. Recall enfists 
the help of Blue Watch In his search 
for wayward son Ben, while Ariadne 
gets married to Petros. Starring Ban 
Onwukwe and Andrew Kazamia. 

10.00 Hale and Pace. Another botch of 
cutting skits, songs and sketches, 
Inducftng a spoof of a famous jeans 
commercial. 

10.30 ITN News; Weather. 

1040 London Weather. 

1046 The South Bonk Show. The new 
generation of British posts, whose 
verse has been reaching wider audi- 
ences over the past few years 
through raefio, newspapers and five 
performances. 

11.45 You’re Booked. 

12.15 Cue the Music. 

1.15 Married - With Children. 

146 Get stuffed; ITN News Headlines. 

130 FthTE Quarterback Princess. Cana- 
dian drama, starring Helen Hunt 
(TVM 1983). 

335 Get Stuffed; ITN News Headfines. 

340 FHm: The Legend of Lizzie Borden. 
ThrDfer, staring EBzabeth Montgom- 
ery (TVM 1975). 

5J28 Get Stuffed. 


CHANNEL4 


200 BBtt. 7.10 Early Morning. B45 The Odyssey. 

1215 Saved by the BeL 1045 Rowhkfe. 1145 

Utbe House on the Prairie. 

1240 In the Company of Whales. Dr 
Roger Payne traverses the world's 
oceans to discover the damaging 
effects of pollution on the majestic 
mammals. 

2.15 Are da THompho/FoattMH Italia 
SpectaL Racing tram Longehamps: 
The 2.30 Prix du Rond -Print 3.05 
Prix de I'Abbaye, and the 3.45 Forte 
Prix de L'Arc da Triomphe. Football: 
Coverage of Rorentina v Lazio. 

266 News Summary. 

6-00 Brookside Special: The Jordache 
Story. Bath Jordache's video diary, 
charting every aspect of her Bfe from 
the moment she moved into Brook- 
side Close with her mother and sis- 
ter. Starring Anna Frfef and Bryan 
Murray. 

7.00 Equinox. Couid dinosaurs be genet- 
ically recreated, and if so, should 
scientists have the right to reintrod- 
uce creatures that died out mfflions 
of years ago? There are discussions 
with with dinosaur experts Jack Hor- 
ner and Jim Kirkland. The pro- 
gramme also includes footage from 
Steven Spielberg's hit film Jurassic 
Park and Interviews with stars Sir 
Richard Attenborough and Jeff 
Goldblum. 

8.00 Don't Forget Your Soapbox. 
Youngsters square up agrinst 
Britain's top decision-makers on 
issues of topical interest. 

2.00 ram The Stunt Man. A Vietnam 
veteran chi the run from the law is 
blackmailed into becoming a stunt 
man by a megalomaniac film direc- 
tor. Offbeat comedy drama, starting 
Pater O Toole [1980). 

11.25 Belfast Lessons. Life at Hazelwood 
Cotiege, a Northern Ireland school 
estabfished for both Protestant and 
CathoBc pupils. 

11.45 F*m To the Starry tetancL A 

Korean man attempts to honour his 
father's dying wish to be buried on 
the Island where he was bom. Pow- 
erful drama, starring Moon Sung- 
Keun and Ahn Sung-Ki (1993). 

1.30 CtosaL. 


REGIONS 


ITV REGIONS AS LOMDOti EXCEPT AT THE 

FOLLOWING Ttitt- 

ANGLIA: 

1230 Bodyworks. 1235 An(pa News. 200 Cartoon 
Time. 205 WHh Six You Get Egg Ro2 (1968) 330 
FuHUmenL (1988) 53S Htetoom. 635 Angle News 
on Suiday 1040 Angfia Wtattnr. 1145 Street 
Legal. 

BORDER: 

1230 Gardena's Dtey. 1255 Border News. 230 
Scotsport. 215 Hot Wheels. 245 Cany On Cabby. 
(1963) 530 Coronation StresL 215 Bolder News. 
1045 Festival: Joob * the Ffltz. 1145 The South 
Bank Show. 

CENTRAL: 

1230 Central Newsweek. 1255 Central News 200 
Gardening Time. 230 The Central Match - Uwet 
435 Hr the Town. 535 rather Dowflng Investi- 
gates. 215 Central News 1040 Local Wwatl wi. 
1145 Prisoner: Ceil Block H. 

GRAMPIAN: 

1230 Gradenerts Diary. 1255 Grampian HeedDnes. 
230 Scotsport. 215 The Mounaki Bike Show. 345 
Sponsor, Sador, Beg ganne n. Cheat. 445 Pick a 
Number. 5.15 Movies. Gamas and Videos. 545 The 
Business Gama. 215 Granpian Heacflnes 1040 
Grampian Weather. 1 145 Prisoner: Cel Block H. 
GRANADA: 

1235 Close to the Edge. 1266 Granada News 230 
Hot Wheels. 230 Stuntmasfers. 330 Flash Gordon. 
(1980) 530 Dr Qiinrr Medidne Woman. 215 Gran- 
ada News 230 Coronation Street 1045 Festival: 
Joels at the Rite. 1145 The South Bank Show. 

HTV: 

1235 The Utttest Hobo. 1255 HTV News. 200 
Umlted Edition. 230 SurvtvaL 200 The West 
Mutch. 330 Doctor at See. (1955) 5.15 Country 
Watch. 545 Up Fronti 215 HTV News. 1040 KTV 
weather. 1145 Prisoner: Cal Bkrck H. 


1230 Seven Days. 1230 Meridian News. 230 The 
Pter. 225 The Listings. 220 The Merkfian Match. 
215 BfiBon Dollar Throat {TVM 1979) 430 highway 
to Heaven. 546 The Milage. 215 Meridian News. 
1145 The Pier. 

SCOTTISH: 

1230 Scotland Today. 1235 Skooeh. 230 Scot- 
sport. 215 Manhunt tar Claude Dallas. (TVM 1988) 
530 Knight Rider. 535 Cartoon Time. 215 Scot- 
land Today 1040 Scottish Weather. 1145 Wet Wet 
Wet. 


1235 Newsweek. 1235 Tyne Tees News. 200 The 
Tyne Tees Match. 255 Hanntoel Brooks. (1959) 
435 Dinosaurs. 530 Animal Country. 630 Tyne 
Tees Weekend. 1145 The Powers That Be 


1230 Gardering Time. 1235 UTV Uve News 230 
Highway to Heaven. 256 How to Murder a MGIon- 
airo (TVM 1990) 435 PoSce Six. 445 Murder, She 
Wrote 340 Gtonrae. 210 Witness. 215 UTV Live 
Early Evening News 1040 UTV Uve News 1145 
Prisoner. Cefi Stock H. 


1230 Westcountry Update. 1255 West country 
News. 230 Hot Wheels. 230 VM. 200 Eye on the 
Sparrow. (1987) 430 Blooming Maivefious. 530 
Father Dowling Investigates. 215 Westcountry 
News 1040 Westcountiy Weather. 1145 Prisoner: 
Cefi Block H. 


1235 Kick About. 1230 Catender News. 230 High- 
way to Heaven. 236 HarmtoaJ Brooks. (19691 435 
Dinosaurs. 530 Animal Country. 530 Calendar 
Newa and Weather 1040 Local Weather. 1145 The 
Powers Thai Be. 


RADIO 

SATURDAY 


SUNDAY 


BBC (WHO 2 

200 SrfiHs Baraf. 206 Brian 
Matthew. 10.00 Jutfi Spiers. 
1230 Hayes on Saturday. 130 
The News Huddlines. 230 
Martin Ktener on Satuday- «■*» 
Nick Etarradough. 530 The 
Three Degrees. 630 Holy. 730 
The Golden Days of Radio. 
730 The Age of Swing. 930 
David Jacobs. 1030 The Aits 
Programme. 1.00 Adrian 
Rrighen. 430 Sraota BareL 


MW03 

sen University: Learning 
h Life 635 Weather, 
•cod Review. Haydn, 
d. Chopin. Berber, 

030 Buficfing a Library, 
s Stung Quartets, by 
a Johnson. 1215 
Release. Barites, 
s. Messiaen. 1230 SpM 
fcge. 130 Role Play. 

das. Actresses discuss 

Shaw's St Joan. 1-20 
ptetnev. 330 Vkttoge 
Dvorak. FAIbert. 

530 Jazz Record 
*s. Whh Geoffrey Smith- 
talc Matters. The BeriW 
re tribute to composer 
dGc fc t 9 C hmhtt - 230 
lataAlgeri. ReesWe 

jpera. 210 Marina Mac. 
fee, Rachmaninov. 

1030 McCoy Tyner. The 

» pianist recorded In 
. 1230 Close. 


ROC RADIO* 

630 News. 


210 Frimlng Today. 
250 Prayer tor tha Day- 
730 Today. 

930 News. 

035 Sport on 4. 

930 Breakaway. 

1030 LOOte Ends. 
1130 TsSdng Poritcs. 
1130 From Oir Own 
Coneapondant 
1230 Money Box. 

1225 The News Quiz. 


wriori? 

nswarS? 071-580 

Mae: Hoiy FOoL By 
da. 

spa of MWe t eu rop a 

m 

» Now. 

1 4. 

if Letters. WWi writer 


rd from Gochom- 
iscope Feature. NdB 
«t composition, 
sy Mflht Theatre; 
Mto Water's 
ft a remote Scottish 

n Mind. 

Tan. 

1 Unquote. 

on Aa I Open My 
oral pronuncrition. 

2 

id Baker Comperes 


Notes. With the Trio Sonrarte. 
1130 Cover Her Face. 
DalgSesh investigates the 
murder ol Safiy Jupp. 

12.00 News. 

1233 Shipping Forecast 
1243 0-W) Aa Worid Service. 
1243 (FM) Close. 


BBC RADIO 5 LIVE 

635 Dtrty Tackle. 

630 The Breakfast Programme. 
205 Weekend wBh Kershaw 
and Whittaker. 

1 135 Spectri Assignment 
1135 Crime Desk. 

1200 Midday EdWon. 

12.15 Spoused. 

134 Sport on Eve. 

530 Sprits Report 

636 Slx-O-Sbc. 

735 Saturday EdUon. 

935 A»n Perapeettv& 

235 Out thb Week. 

1036 Tha TreatroenL 
1130 Mght Extra. 

11.15 Worid IWaHghL 
1236 After Hours. 

230 Up Afl Night 


WORLD SERVICE 

BBC far Europe can be 
received In western Europe 
on meeflun wave 648 kHZ 
(463m) at these times B&t"- 
6.00 Newshour. 7-00 
Morgenmsgazln. 730 Europe 
Today. 8 30 World News. 215 


Waveguide. 225 Book Choice. 
230 People and PoBtics. 030 
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Faith. 215 A JoBy Good Show, 
1200 World News and 
Business Report. 10.15 
Woridbrtet 1030 Dev e lopment 
94. 1045 Sports Roundup. 
1130 Printer’s Devil. 11.15 
Letter from America 1130 
Waveguide. 11.40 Book 
Choice. 11.45 From the 
Weekfies. 1230 Newsdesk. 
1230 BBC English. 1245 
Mlttagemagazin. 130 World 
News. 139 Words of Frith. 

1.15 Multitrack Akemative. 146 
Sports Roundup. 2.00 
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Summary; Sporisworid. 530 
Worid and British News. 5.15 
BBC Eng Hsh. 530 Haute 
Akturit 630 News Summary. 
209 Waveguide. 215 BBC 
English. 730 Newsdesk. 730 
Haute AktueL 200 News and 
features In Germen. 930 Worid 
News. 210 Words of Faith. 
215 Development 94. 930 
Jan fri- the Asking. 1030 
Newshour. 1130 Worid News. 
1136 Words Of Frith. 11.10 
Book Choka 11.15 Meridian. 
1145 Sports Roundup. 1230 
Newsdeek. 1230 Colo Porter. 
130 Worid arid British News. 

1.15 Good Books. 130 The 
John Dum Show. 230 News 
Summery; Play of tha WMc 
Lulu. 330 Newsdesk. 330 Plgf 
430 Worid and British News. 

4.15 Sports Roundup. 430 
From Cur Own Correspondent, 
<130 Write On. 


BBC RADIO 2 

7.00 Don Maclean. 205 
Mtehael AspeL 1030 Hayes an 
Sunday. 1200 Desmond 
Carrington. 230 Barmy Green. 
330 David Jacobs. 430 Tea at 
the Grand. 4.30 Sing 
Something Simple. 530 Charlie 
Chester. 230 Ronnie Huron. 
730 Richard Baker. 830 
Sunday HaH Hour. 930 Alan 
Keith. 10.00 The Arts 
Programme. 1235 Steve 
Madden. 330 Alex Lister. 


BBC RADIO 3 

230 Open Urtvaetty: 
Sociology - Past and Present. 
255 Weather. 730 Sacred raid 
Profane. CmB, Schutz, Boesi, 
Tchaikovsky. Schumann, 
Haydn. 255 Choice of Three. 
Prevtow of programmes. 330 
Brian Kay's Sunday Morning. 
1215 Music Matter*. 130 
Reinventing tha Orchestra: 
Hector Berfaz. Bfirtozand 
Tristan Kauris. 235 La Bonne 
Chanson. F rise. Poulenc. 
Debussy. 428 The BBC 
Orchestras. Rre hm an ln av and 
James MacMBan. S4S Makmg 
Waves. A Nicolas Poussin 
Bxt*ttJan In Paris. B30 Chopin 
and Schumam. 730 Drama 
Now: Fuchsia Sptendans. By 
Les SmBh. Russefi Dixon stars. 
830 Muafc m our Tima Hans 
Warner Hems. 10350** 
Work*. Bgar. 1230 Close. 


BBC RADIO 4 

630 News. 


210 Praluda. 

230 Morning Has Broken. 

730 News. 

7.10 Sunday Papers. 

7.15 On Your Farm. ■ 

740 Sundry. 

830 The Week's Good Cause. 
930 News. 

210 Sunday Papers. 

21$ Letter from America. 

930 Mooting Sentaa. 

10.15 The ArSuw. 

TL.16 Medtamwave. 

1145 Eating Out 

1215 Desert Island Dries. 

130 The Worid TNs Weekend. 
200 Gardeners' Question Time. 
aao Cla ssic Serial: Lost 
Empires 

330 Pick of tiw Week. 

4.15' Foot In (he Door. 

530 Toole's Tour to Hagtey 
HML 

280 Poetry Pfaaaa! 

830 Six O'clock News 
215 Tides Of Hfettry. 

230 Chfldran’s Radio 4: Room 
12 By Robert Smindefe. 

730 In Business 
730 Opinion. 

830 (FM) The Rape of 
Mtteieuropa. 

830 (LWJ Open Unhereity. 

830 (FM) A Taste Of VOW Own 
Mecfldne. 

230 (FM) The Natural hfistory 
Progranirn. 

■30 (FM) Flashpoints. 

1030 News 

121S Suwon. 

1045 Good Lookers RSP6 


worker Stephanie Tyler. 
11.15 With Great Pleasure. 
With sports writer Hugh 
MdDvanney. 

1145 Seeds of Fahh. 

1230 News 

1230 Shipping Forecast 
1243 (LW) As Worid Service. 
1243 (FM) Closa 


BBC RADIO S LIVE 

635 Hot Pureuha 
630 The Breakfast Pro gra m me . 
0.00 Alastalr Stewart's Sunday. 
1230 Midday Edition. 

1215 The Big Byte 
135 Top Geer. 

135 Carol SmBe's Blue Skies 
235 You Carrot Ba Sertoral 
930 Sunday Sport 
635 Jfanandtho Doc. 

730 News Extra. 

735 The Acid Teel 
830 The Ultimate Preview. 
1035 Special Assignment 
1035 Crime Desk. 

1130 Mg« Extra. 

1235 MghtcaJL 
200 Up Al Night 


WORLD SERVICE 
BBC for Europe can be 
received In western Europe 
on Median Wave 548 KHZ 
(403m) at the following times 
8CT: 

200 Newshour. 730 News and 
features in German. 730 Jazz 
For The Asking. 200 Worid 
News. 216 Composers' 


Jcuneys. 230 From Our Own 
Correspondent 290 Write On. 
200 World News. 039 Words 
of Forth. 215 The Greenfield 
Collection. 1030 Worid News 
end Business Review. 1215 
Seeing Stare. 1030 Folk 
Routes 1045 Sports Roundup. 
11.00 News Summary; Science 
In Action. 1130 In Prakn of 
God. 1200 Newsdesk. 1230 
BBC Engtrih. 1245 News and 
Press Review to German. 130 
Newa Summary; Play of the 
Week; Lute 230 Newshour. 
330 Sportaworid. 430 Worid 
News. 4.15 Concert Haft. 445 
Jazz Now and Then. 530 
Worid and British News. 5.15 
BBC English. 530 News and 
features In German. 830 Worid 
News and Business Review. 
215 BBC English. 7.00 
Newsdeek. 730 News and 
features to Gorman. 030 Worid 
News, f.10 Words of Faith. 
215 Printer's Devil. 030 
Europe Today. 10.00 
Newshour. 1130 World News 
and Business Review. 11.15 
Meridian. 11.45 Sports 
Roundup. 1230 Newsdeak. 
1230 Turkey Today. 130 
Worid and British News. 1.15 
Top Scores. 130 In Praise of 
God. 230 News Summary; The 
Path to Power. 230 Mkotina 
Gore. 245 Composers’ 
Journeys. 330 Newsdesk. 330 
Composer of the Month. 430 
Worid and British News. 4.15 
Sports Roundup. 430 Anything 
Goes. 


WEEKEND FT XXIII 


CHESS 


Nigel Short and Michael 
Adams were eliminated from 
the Intel /PCA world champi- 
onship semi- finals in most 
emphatic fashion on Thursday, 
when Gata Kamsky of the US 
beat Short and Vishy Anand of 
India knocked out Adams, both 
by the wide margin of 5‘A-lV*. 
in best-of-10 matches. Kamsky 
and Anand will meet next year 
in the final eliminator for 
Garry Kasparov's world title. 

It was Short’s first loss in a 
candidates match for five 
years. His deep preparation 
which accounted for Karpov 
and Timman was thwarted as 
Kamsky continually switched 
openings and launched tactical 
attacks which imposed his own 
pattern on the games. 

Defeat on such a scale makes 
it difficult for either Briton to 
become a real contender in 
future, and may mark the end 
of a 10-15 year period when 
English grandmasters looked 
potential challengers for the 
crown. 

It is doubtful whether Short, 
a millionaire at 29, retains the 
motivation to overhaul a new 
generation a decade younger. 
Adams has too many light- 
weight openings such as the 
Vienna 1 e4 e5 2 Nc3 and the 
Centre Game which played 
into Anand's hands. This 
week’s game is a classic attack 
on the king, though Short 
encouraged it by leisurely 
manoeuvres (G Kamsky. 
White; N Short, Black). 


1 d4 Nf6 2 C4 e6 3 Nc3 Bb4 4 
e3 Co 5 Bd3 Nee 6 Ne2 cxd4 7 
exd4 dB S cxd5 Nxd5 9 0-0 BdS 
10 Ne4 Be7 11 a3 0-0 12 Bc2 
ReS 13 Qd3 g6 14 Bh6 b6 15 
Radi Bb7 16 Rfel RcS 17 Bb3 
a6 18 N2g3 NbS 19 Qf3 Rc7 20 
Nh5! Nd7 If gxhS 21 Qg3+ 21 h4 
N7f6 If Bxh4 22 Nd6. 22 Nhxf6+ 
NxfS 23 da! Exposing Short's 
weak g7 and back rank. If 
Nxd5 24 Bxd5 Bxd5 25 Rxd5 
exd5 26 NfB+ BxfG 27 Rxe8+ 
QxeS 28 QxfB. Nxe-1 24 dxefi f5 
25 Rxd8 Rxds 26 Rdl Resigns. 
If RxdlT 27 Qxdl with the win- 
ning threat QeS+! 

No 1041 



B Kurajica v A Belyavsky, 
Interpolis Tilburg 1994. White 
(to move) is material up, yet 
how can he win against 
Black's active rooks? The idea 
is not hard, but you need a 
precise sequence against 
Black's best defence. 

Solution Page XXII 

Leonard Barden 


BRIDGE 


My hand today comes from 
rubber bridge: 

N 

4KJ63 
V K 10 6 4 
4 J 10 
*9 53 

W E 

4 ~ A Q s 2 

V Q 8 7 3 f 9 
+ A Q 7 5 498 63 2 

* K Q J 10 2 $ A 8 7 4 


S 

4 A 10 9 7 5 4 
f A J52 
♦ K4 
«6 

South dealt and bid one spade. 
West doubled and North said 
three spades (a pre-emptive 
bid: with a genuine raise to 
three spades, he would have 
said two no-trumps, the Trus- 
cott convention). But South 
went on to four spades and 
that ended the auction. 

West led the dub king, East 
dropping the eight and contin- 
ued with the queen, which was 


ruffed in hand. Crossing to the 
spade king , declarer returned 
the knave and East covered 
with the queen. If East ducks. 
South can ruff the last club, 
which would help the timing . 

The spade 10 drew East's 
trump - and declarer went 
wrong. He crossed to the heart 
king, returned to his ace of 
hearts and played the knave. 
West won and played the eight 
Declarer led dummy's knave of 
diamonds, but West had both 
ace and queen. One down. 

South did not think. For his 
double, West must hold the 
heart queen. After drawing 
trumps, the declarer must cash 
the heart ace, finesse dummy’s 
10, ruff the last club, cash 
heart the king and exit with 
the last heart West is end- 
played. He must either cash 
the diamond ace, setting up 
South's king, or concede the 
ruff discard by a dub return. 

E.P.C. Cotter 


CROSSWORD 


No. 8,573 Set by DINMUTZ 

A prize of a classic Pel Dean Sonveran 800 fountain pen, inscribed with the 
winner's name for the first correct solution opened and five runner-up 
prizes of £85 Pelikan vouchers. Solutions by Wednesday October 12. 
marked Crossword 8378 on the envelope, to the Financial Times, Number 
One Southwark Bridge. London SEl 9HL. Solution on Saturday October 15. 



Addra 


ACROSS 

1 Spain’s tender vegetable, firm 
inside (6) 

4 Svengall in a bad way? 
Crumbs! <8> 

9 Rank of detectives organised 
to lead (6) 

10 Upright main-charger? (3-5) 

12 Army band we hear (8) 

13 Threaten one member with 
closure (6) 

15 Long film seen in the picture- 
house (4) 

16 The royal one reports star 
and moon movements to the 
queen (10) 

19 Cook, for example, a beggar 
in America (3-7) 

20 One penny on tm is a bargain 

(4) 

23 Retired writer to cut relative 

25 & smoked and left In straw 
hats (8) 

27 Application to produce nice 
tans? (8) 

28 Gloss paint a disaster? (6) 

29 Careless hit-and-run (8) 

30 Your head stuck in Times 
puzzle of course (6) 

Solution 8*572 


1 

2 

3 

5 

8 

7 


11 

14 

17 

18 

19 

21 

22 

24 

26 


DOWN 

Standard accomplished in 
story (7) 

Feeling of excitement (9) 
Strove to get end of crank- 
shaft greased (6.) 

Packed snow, on the way 
back, is flat and smooth (4) 
Powerful tough guys held in 
check (8) 

There is often room for 
Improvement where one 
works (5) 

One who lays out red pens, 
perhaps (7) 

Did bees swarm where 7 
stands? «7) 

Cheese roll on, but not for 
Jong l7> 

Idiosyncracy of Italian art 

movement (9> 

King, perhaps, to confront 
eccentric person 0-4) 
Heaven-sent coppers going by 
air? (7) 

S Over- lined old hat in lobby 


. tin in large tank (6) 

J's Army course? (5) 
Strokes cats a different way 
14) 

Solution S£61 


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WINNERS 8m> 61: L BramaH. Banbridge, Co Down: T. Behan, Hoy lake, 
Merseyside; T.W. McLean, Sandai. Yorks; J. Upson. Penrith. Cumbria; 
JJ1 Warner, Cape], Surrey; S, Wookey, Luton, Bedfordshire. 



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mg data lor tfts monitoring 02 targets, ana me iur nil* minuting w »<» it- "aging. 







XXIV WEEKEND FT 


FINANCIAL TIMES WEEKEND OCTOBER i (OCT OB ER21994 


*- 


I guess it was just another tale 
or Piccadilly low-life: a succes- 
sion of fleshy floozies catch- 
ing nay eye everywhere I 
turned, while their lusty men-folfc 
patrolled the alley-ways looking for 
action. Some of them wore Timsk s, 
but I could see through their cheap 
disguises. They were frightened. 
This was a society on the brink of 
collapse, and they knew it. 

It was a highly disturbing couple 
of hours. But when I left the Boyal 
Academy's The Glory of Venice 
exhibition, the whiff of “Chanel No. 
5 crossed with aerosol room freshe- 
ner", as the catalogue describes the 
pervading atmosphere, stuck In my 
throat: why this fascination with 
the 18th century? And if this really 
was the Age of Reason, the ulti- 
mate expression of man's rational 
mastery over the universe, why did 
its patrons surround themselves 
with the kitsch and glitter of these 


The noble rot at a society’s core 

Peter Aspden, at the RA’s Venice exhibition, saw only the sad degeneration of a culture 


ghastly artefacts? 

Many speak of the joy, the sensu- 
ality, the celebration of 18th cen- 
tury art; at the Royal Academy, I 
saw only the sad degeneration of 
an entire culture, the noble rot at 
the core of a society intent on par- 
tying for dear life. Were its leading 
lights so blinded by the pellucid 
skies and arcadian visions that 
they failed to see the storm clouds 
gathering? 

Some of the paintings are reli- 
gious, at least in theme; but their 
tone betrays them: Tiepolo’s The 
Immaculate Conception, In which a 
curvaceous, knowing Virgin 


immodestly acknowledges the pant- 
ing leers of the surrounding cher- 
ubs; Piazzetta's Guardian Angel, 
who gestures grandly above the 
camp theatrics of her adoring 
saints. Forget spirituality; more 
palpable in the exhibition is the 
douceur de more of this self-indul- 
gent age, the air of pleasure and 
luxury which permeates even the 
smallest works. 

These mannered, stylised cre- 
ations, beautifully painted though 
they may be, speak of an unbridled 
arrogance totally devoid of sacred- 
ness or humility of spirit, emblem- 
atic of a society utterly engrossed 


in Its own affectations. Little won- 
der that the French, having cap- 
tured Venice and the famous Lion 
which symbolised the city’s 
supremacy, shipped the statue in 
small pieces back to Paris where it 
was re-assembled with its tail low- 
ered and placed between its legs. 

But why the fascination? Could it 
be that the brazen excesses of the 
18th century remind us. ever so 
slightly, of our own? The sharpest 
minds of that period described 
their cultural milieu in terms we 
are not nnfamfliar with today: opu- 
lent, acquisitive, corrupt, philis- 
tine, insecure. It is a mistake to 


assume that all intellectuals of the 
Enlightenment celebrated the 
unqualified triumph of reason and 
science; did Alexander Pope not 
jibe at man’s role as the “Sole 
judge of Truth, in endless Error 
hurled: The glory, jest and riddle of 
the World!"? 

We too live in a cynical world 
which glorifies sensuality and rev- 
els in the Ironic twists and turns of 
a post-heroic mentality; is a trip to 
The Glory q f Venice simply an act of 
mass transference by which we can 
guiltlessly enjoy the corpulent 
delights of an era we identify with 
our own? 


That is why 1 felt a little sick as I 
wandered round the Royal Acad- 
emy, hurrying past its dank alle- 
gorical tombs, its insipid canal 
views (can these continue to have 
any impact in an age of mass tour- 
ism?), those oh-so-nanghty putti 
urinating out of the clouds, the 
chained Nubian slaves holding 
aloft their prized pieces or porce- 
lain. Charming as a bucket of cold 
custard. The show ends with the 
cloying works of Canova; take a 
close look at the pious plaster bas- 
reliefs Teaching the Ignorant and 
Feeding the Hungry, then go and 
look at the Parthenon Marbles, and 


weep for what happened to Western 
Civilisation. 

Once out of the exhibition, how- 
ever. there Is no escape, for the 
shameless hedonism continues In 
the gallery shop: carnival masks, 
silk scarves, needlepoint kits, Bas- 
sano ceramics, Murano jewellery, 
multi-coloured pasta and charcoal- 
roasted artichoke hearts. A man 
approaches me to explain my 
chances of winning o holiday (over- 
looking, you guessed it, the Grand 
Canal) if I buy a lottery ticket for 
the Royal Academy appeal. 

It is all too much. I wonder 
which ts more decadent, a society 
which splashes its decline all over 
a piece of canvas, or one which 
pretends It is not happening and 
keeps falling in love with Its post. 
■ The Glory of Venice: Art in the 
Eighteenth Century, at the Royal 
Academy of Arts. London until 
December 14. 


Private View/ Christian Tyler 

Aristocrat who chose the cloistered life 



Daniel Kuentz 


T o be bom with a 
fear of heights 
when your home is 
a gothic abbey 
almost as tall as 
Notre-Dame looks like some 
kind of divine jest. Not so for 
Diane d'Allaines, the owner of 
a former Cistercian monastery 
In the south of France. Val- 
magne Abbey is the one place 
in the world where vertigo 
does not bother her. 

Indeed, the proprietress of 
Valmagne appears altogether 
undaunted by the place. She 
was bom there and knows it so 
well, she says, that she can 
find her way blindfolded. 

I asked her if she ever saw 

mnnks shuffling In the gioOQL 

“No," she replied- Yet her 
tone of voice was ambiguous. 
Why do you hesitate? 
“Because if you go to the 
cloister, very often you hear 
voices." She paused. "But I 
don't believe in ghosts." 

No, of course. What sort of 
voices? 

“It's - how do you call that 
In English? - chuchoter. Whis- 
pering. Yesterday I went to the 
cloister and thought ‘But 
there’s somebody there!’ No. 
No one. It's a sort of whisper." 
Is it frightening? 

“Oh, no, no, no! You can’t be 
afraid here." 

Valmagne stands on a 
southern incline within sight 
of the Mediterranean and the 
oysterheds of S&e. It is pro- 
tected on the math by natural 
ramparts of white limestone 
which rise like mammoth’s 
teeth from the rocky scrub, or 
garrigues. 

The Cistercians came here in 
1138. An ascetic offshoot of the 
Benedictine order, they picked 
sites for their solitude, abun- 
dant water and for soO suitable 
for gardening and viticulture. 
(They could predict the taste of 
the wine by tasting the earth.) 

Diane d'Allaines inherited 
the 900-acre property through 
the counts of Turenne an her 
mother’s side of the family. 
They had acquired it in 1838, 
with the consent of the bishop 
of Montpellier, from a M. Gren- 
ier to whom the place had been 
sold as a national asset after 
the French Revolution. Granier 
used the cool church for ageing 
his wine; the great oak hogs- 
heads that he installed either 
side of the nave and round the 
apse stand there to this day. 

The present owner's privi- 
leged predicament is unusual 
but not unique. She belongs to 
a small dub of French abbey- 
proprietors - though the aboli- 
tion of the law of primogeni- 
ture in France has ensured 
that most are joint owners. 

“When I was small it seemed 
to me absolutely normal to live 
in such a place," she said. “I 
never had the shock you have 


As They Say in Europe /James Morgan 

The train spotter’s, 
guide to unification 


S eptember marked a 
new stage in the Euro- 
pean debate, ft is not 
now Just about Europe. 
It seemed to take a traditional 
turn with the publication of 
the now notorious paper by 
the German Christian Demo- 
crats proposing a Union based 
an a “hard core" of five or six 
states. But there were also two 
little-noticed comments by the 
Czech prime minister, Vaclav 
Klaus, which, if taken seri- 
ously, could breathe new life 
into the flaccid body of British 
negativism and nationalism on 
this subject. 

In an article In The Econo- 
mist. written before the CDU 
paper appeared. Elans estab- 
lished a simple principle of 
subsidiarity: “We cannot 
escape responsibility to solve 
our problems at home... Nor 
should we be surprised if the 
forms and pace of European 
integration prove to be deter- 
mined by the real Interests of 
the countries concerned and of 
their citizens, rather than by 
artificial blueprints approved 
at various inter-governmental 
summits." 

Elans concluded with an 
analysis of the difference 
between European “integra- 
tion" (good) and “unification" 
(bad). These views attracted 
less attention than they 
deserved for they were over- 
taken by the row about a 
multi-speed Europe. The CDU 
said someone had to set the 
pace and it should be a group- 


ing based on the Franco-Ger- 
man axis. 

Elans replied in the Prague 
daily Lidooe Noumy. He said 
that Europe was a “multi- 
speed continent, whose ele- 
ments have always been strik- 
ingly different from each 
other”. Be was alarmed about 
the way things were going. 
There was a growing view that 
“Europe" was the basic unit, 
whereas In fact the nation 
was, and would remain so. 

If all this sounds like Lady 
Thatcher circa 1990, it is not 
surprising. While she talked 
about throwing back the (eco- 
nomic) frontiers of the state 
and not allowing Brussels to 
roll them forward again, the 
central Europeans think in 
terms of their recently 
reclaimed political indepen- 
dence. Central European 
nationalism is at odds with the 
ideology of Europe, even when 
that nationalism has the civi- 
lised and utilitarian character 
offered by Vaclav Klaus. 

Britain should heed Klaus. 
He says that, when it comes to 


joining Europe, “The Czech 
Republic will find it easier to 
board the slower train rather 
than the 'super express’." Why 
does John Major not say that? 
Why not follow the advice of 
the Daily Telegraph: other 
countries should be told they 
are welcome to try an eco- 
nomic and monetary union 


No one can agree 
on a timetable or 
a destination says 
James Morgan 

and Britain would watch quite 
happily as the whole thing fell 
apart Anyway, nothing wor- 
ries Euro-enthusiasts more 
than explicit moves to 
strengthen the unification pro- 
cess. It was Le Monde which 
headlined its comment on the 
CDU paper Rudesse germani- 
que. It was the Italians and 
Spaniards who clamoured “me 
too" when the exclusive 


nature of the hard core was 
revealed. 

If there is a slow train in 
Europe, the British will be in 
the driving seat, with a fair 
chance 1 of seeing the express 
derailed. But the British have 
their own illusions which 
overstate the power of the 
nation. Listen to the endless 
crowing about the departure 
of the UK from the European 
Exchange Rate Mechanism a 
couple of years ago. 

That governmental disaster 
is now credited with near- 
magic properties: the conse- 
quent cut in short-term inter- 
est rates brought about a 
boom, the devaluation of the 
currency made British exports 
competitive. With one bound, 
the Union Jack was free. No 
matter that if there is a great 
recovery going on, nobody out- 
side the M2S, the motorway 
around London, believed ft. No 
matter that the devaluation 
has not eliminated the coun- 
try's trade deficit while other 
nations, still on-devalued 
within an unofficial ERM, suf- 


who come here for the first 
time." 

Do your friends who live in 
ordinary houses find you dif- 
ferent? 

“No, I don't t hink so. If 
some thing could make me a bit 
old-fashioned it's not because 
of the place, it is because of the 
education 1 received." Part of 
that education was at a girls’ 
school in Surrey, where she 
acquired her well-accented 

English. 

For all her background in 
the landed aristocracy, it has 
required a certain financial 
and spiritual ascetism on the 
part of the abbess of Valmagne 
(as she jokingly calls herself) 
to rise to the challenge of the 
pl ace . 

Do you sometimes feel it a 
terrible weight? 

“No," she laughed. “Some- 
times Tm tired. But it’s not the 
place, it’s the work." 

She is strong-willed and a 
traditionalist, but quite with- 
out hauteur. She looks after 
people in trouble, and her four 
dogs were taken in as strays. 
To me, she would only describe 
herself as a perfectionist who 
saw untidiness everywhere. 

You mean you look for 
cracks in the walls and litter 
on the ground? 

“I see that, but each time I 
go to the cloister I think it's so 
beautiful - unless I'm in a 
hurry or something." 

Do you feel the weight of the 
past? 

“Of course. I am very inter- 
ested in the past of the abbey. 
And of course St Bernard (spir- 
itual father of the Cistercians) 
has occupied a lot of my time. 
Tm very much impressed by St 
Bernard. Well he's been critic- 
ised for the Second Crusade, 
which was a mess. But for his 
writing and his importance in 
Europe... 

“Very often I imagine how 
they built the church - the 
time it took, the people, the 
peasants who were just fed and 
clothed and defended it during 
the Hundred Years War. Those 
people worked to the glory of 
God, and that’s all No money. 

“And when I see the world 
now, how it is that everything 
is for money; and I see what is 
going on in France at the 
moment - it's amazing, tike 
Italy, all those politicians tak- 
ing money for themselves - I 
do compare, and say we are 
living in a very mad world." 

Is it a religious impact the 
place has on you? 

“No, not even. It's that I 
think the world is very ill and I 
wonder how long it can con- 
tinue tike that” 

She contrasted the profits of 
the pharmaceutical companies 
with the poverty of those who 
died because they could not 
afford treatment 


fer no such problem. 

The cut in interest rates was 
a good thing bat that is a 
reflection of the exaggerated 
British reliance on short term 
loans. All that has happened is 
that Britain has moved from a 
monetary policy dictated by 
the Bundesbank to one dic- 
tated by the bond markets. 
What will be said when tbey 
force unacceptably high short 
term rates on us? 

Professor Helmut Jochim- 
seu, a member of the council 
of the Bundesbank, entered 
the debate when he told a con- 
ference in Oxford last month 
that the nation-state had 
become too small to solve most 
problems with which it was 
confronted. He concluded that 
a Euro-solution demanded that 
there ought to be some middle 
way between a Brussels super- 
state and the nation. 

So there is a new argument 
about Europe. Klaus welcomes 
the idea of many speeds where 
nations can choose their own 
destiny and says the nation 
state can solve Its own prob- 
lems. The Bundesbank says it 
cannot and wants a brain to a 
destination that has yet to be 
built. The British want there 
to be just a slow track or no 
track, and the Euro -enthusi- 
asts want to drag the true- 
believers away from the rest 
to a station all of their own. A 
four-track Europe. 

■ James Morgan is economics 
correspondent of the BBC World 
Service. 


A door opened and the four 
dogs, spreadeagled on the din- 
ing room floor of the private 
wing, leapt up barking. "La 
peax!", shouted their mistress. 

I asked her about her own 
budget 

“I da not spend a lot of 
money for myself - very, very 
little. I am not very interested 
In money, really. Of course l 
used to travel in the old days. I 
never go for holidays now." 

What about clothes? 

“Very ordinary clothes. I try 
to find clothes nice but not 
very expensive. Well, that and 
a bit of food when the children 
are here." 

She was referring to the 
three young children of Phil- 
ippe her son and Ruth his 
English wife who live nearby 
and run the vineyard. 

“When my husband died. 1 
got a little pension.” 


Diane d'Allaines 
has dedicated 
herself to the 12 th 
century Cistercian 
abbey she 
inherited 


Valmagne was still in some 
disrepair when Diane 
d'Allaines took it over from 
her mother. There were buck- 
ets in the rooms to catch the 
rain. Fortunately, she had the 
wherewithal to do something 
about it. She had inherited 
another property, a chateau 
called Brinon near Orleans 
with an 84-metre frontage (as 
long as the nave of Valmagne). 
two wings and 25 bedrooms. 

“It was a shooting place and 
nowadays - poof! - you buy 
pheasants, you put them in a 
wood and...” She clapped her 
hands to simula te gunfire. 

“AU we could do there was 
put up a luxurious hostel for 
shooting. That didn't interest 
me. A choice had to be made 
between Valmagne and that 
place. For me, who am quite 
meridionals, the choice was 


done." As if to emphasise the 
finality of the decision, she 
referred to Brinon only as “the 
other place", never by name. 

The sale of Brinon enabled 
her to put a new roof on Val- 
magne, a job costing over 
FFr2m (£250,000), to extend the 
private wing and thus to con- 
vert a romantic relic into a 
going concern. 

Had she not been afraid of 
the responsibility? 

“I think 1 didn’t see that. no. 
I knew it was going to be very 
hard, but this place was worth 
it and the other was not 

The dogs were restless and 
she went into the kitchen to 
get their food. The mongrel's 
bowl she placed outside the 
back door, the old red setter’s 
just inside, the tittle white poo- 
dle's by the stove and the bas- 
sett-hound’s by the coat-rack. 

“My life is full” she said. "It 
wasn't tike that before. Very 
often I think- ['ve got a lot of 
worry.. .But I think my life is 
foil and I think too I've done 
something with my life, some- 
thing which will survive. And 
that is a great satisfaction for 
me. Otherwise, if l had stayed 
over there in the other place - 
well, it is a very ordinary life, 
banal." 

Did you think of yourself as 
a strong person? 

“I never asked myself that 
question, but now - Allez! 
DehorsT - she shooed the dogs 
out - Tm not so interested in 
me like that, you see. The 
thing is that I’m pushed by 
events. When I was younger, 
very often I thought life was 
difficult I was asking myself 
questions. Now I do not Life - 
it’s hard veiy often but gives 
me satisfaction." 

The state helps with grants 
and a recent measure has 
relieved owners of historic 
monuments from death duties. 
Routine maintenance is cov- 
ered by a grant (currently 
FFr480,000 a year) and income 
from visitors, conferences, 
wedding receptions and the 
like. The vineyard is quite sep- 
arate, and just about profit- 
able. She continues to put in 
her own money for such capi- 
tal works as re-opening the 


bricked up abbey windows, 
three of which have just been 
completed. 

But the great church is buck- 
ling. Whether by mistake or to 
preserve the roraanesque clois- 
ter on its south side, the 13th 
century architects made the 
flying buttresses on that side 
too slender. 

Do you have dreams of it 
fallin g? 

“No, no!" she exclaimed with 
horror. "You do everything 
you can. After that... well, 
after a certain point you are 
not responsible." 

And if it suddenly started to 
move...? 

“But don't say that It's been 
like that ever since 1257. It 
won't move tomorrow morn- 
ing. But we must do every- 
thing in such a way that it 
doesn't move in 20 years. I'm 
working not for me. I’m work- 
ing for them. ..That's nlL" 

It was not clear if she meant 
her heirs or the people of 
France. 

“My feeling is not the feeling 
of an owner,” she continued. "1 
think I'm only a responsable. 
I'm one In tiie chain and I must 
transmit it. And I hope it will 
stay in the family. But you see 
we do not know.’ 1 

If your grandchildren 
decided to be airline pilots 
instead, would you be devas- 
tated? 

“I think if they do not do 
what they ought to do. they do 
not deserve it You see, you 
must In a way deserve what 
you have, don’t you think? 

“And of course I hope one of 
the three - maybe the three 
together if they get on - will 
be able to keep It. If not. 
well..." She broke off with a 
shrug. 

“When you are born in a 
family to whom this sort of 
place belongs, you must con- 
sider yourself as a responsable 
and not an owner. You have no 
rights. You have duties. 1 will 
try and explain all that when 
they are older. 

“They must also be thankful 
for all the generations before 
who have kept the place and 
transmitted the place. And 
that they must never forget." 





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