Skip to main content

Full text of "Financial Times , 1994, UK, English"

See other formats




market takes off 



Cutting thecord 

Bandy phone as 
killer product? 
p««ii .• 



Kansai 


Catching up on the 
capital 

Survey, Section IU 


H'*' 


FINANCIAL TIMES#! ' 


Europe s -Business. Ne'.vsoeoer 

THURSDAY SEPTEMBER 1 1994 ‘ ' .rV\V D3523A 

Losses prompt calls 

j British prime minister sounds note of caution after historic ceasefire announcement 


derivatives market 

Heavy losses on financial derivatives trading fay a 
Maryland county administration are libelling 
In the US Congress for legislation to tighten over- 
sight of the derivatives market. Charles County. 
Maryland, said its deputy treasurer had been dis- 
missed after the county discovered a loss of an esti- 
mated Si .3m on investments in derivatives, includ- 
ing mortgage-backed securities. Page 7 

J^»n offers YlOQbn war atonement: Japan 
is to spend YlOObn (St.oibn) on historical research 
and cultural projects to promote peace in Asia, in 
an attempt to atone for second world war aggres- 
sion. Page 16 

T u mnwwd ter Pahmer- De w c German 
automotive and aerospace group Daimler-Benz 
reported an operating profit of DM926m ($590m) 
compared with a loss of DM2.4bn in the «m»» period 
a year ago. Page 17; Lex, Page 16 

Japan prices latest sefl-off: The Japanese 
finance ministry put a higher -than -expected market 
value of Y2£76bn ($2&.7bn) on Japan Tobacco, the 
country's monopoly cigarette manufacturer, which 
is to be privatised. Page 17 

MetaHgesedsctiaft freed from co n t ra ct s; 

MetaDgesellschaft, the struggling Goman metals 
and engineering group, negotiated its way out of a 
series of crippling contracts with a US oil refiner. 
Page 17 

A^a-Pacfflc pl e d g e on trade urged: Leaders 
of the 17 countries of the Asia-Pacific Economic 
Co-operation forum should commit themselves to 
eliminating all barriers to trade and investment in 
the region, an international advisory panel recom- 
mends. Page 6 

THT (duns to p ro f it: A strong contribution 
from its 50 per cent interest in Ansett Airlines 
helped Australian transportation and package deliv- 
ery group TNT, to post-tax annual profits of 
A$l05.im (US$77 -2m). compared with a loss of 
A$256.7m a year earlier, when TNT faced some 
heavy one-off charges. Page 20 

China moves to scrap Kong Kong refor ms: 

China’s intention to disband elected assemblies in 
Hong Kong became law when the National People’s 
Congress empowered a yet- to-be-appointed group to 
establish a fresh political order in Hong Kong after 
1997. Page 5 

SBC in IIS desk Swiss Bank Corporation, 
Switzerland's third largest bank, is to acquire Brin- 
sorTT'artnfflS, a US investment num^ement firm, as 
part of its strategy far building up a global institu- 
tional asset management business. Page 17 

TVB moves 70% ahead: Hong Kong television 
company Television Broadcasts surprised the stock 
market when it reported a 70 per cent increase in 
first-half net earnings to HK$278m ($36m). Turnover 
was up nearly 36 per cent Page 20 

Cabin staff vote to strike: Cabin crew at 
Britannia Airways, the UK’s second largest airline, 
liave voted to take strike action in support of their 
annual pay claim. Page 10 

Profits Ml at AQF: Assurances Generates de 
France, French insurance group which is a keen 
candidate for privatisation, announced a fall in 
first-half net profits to FFrL04bn ($190m) from 
FFrl.-nbu in the same period last year. Page 19 

Strong sales lift Astra: Swedish 
pharmaceuticals group Astra reported a 23 per cent 
jump in first-half profits to SKr450bn ($58 Lm), with 
strong sates growth more than compensating for a 
sharp drop in financial income. Page 18 

£1.5bn target for Brnadgate: Potential buyers 
of Broadgate Properties, London property invest- 
ment company owned jointly by Stanhope and 
Rosehaugh, are being given a three-year valuation 
target of £1.5bn ($2.3hn), compared with its most 
recent valuation of £835m. Page 10; Lex, Page 24 

BT cuts prices: British Telecommunications cut 
the price of long-distance calls within the UK by up 
(on quarter in a move likely to increase pressure 
on its competitors in the business market Page 10; 
Lex, Page 17 

Bri tain may puB out of World Cup: British 
Athletic Federation officials were meeting last 
night to decide whether to withdraw from next 
week’s World Cup after the second sample of a 
drugs test taken from 800 metres runner Diane 
Modahl proved positive. Modahl pledged to prove 
her innocence. 

Lindsay Anderson dies: Film and theatre 
director Lindsay Anderson, whose fil m s included ff 
and This Sporting Life, died, aged 71, while on holi- 
day in France. Page 13 


m STOCK MARKET INDICES 


FT-SE 100: 

retd 


_A2SU 

.m 


C*1-7) 


(♦312) 

(*6.41> 


(-420) 

(ASO) 


FT-S BflftKfc 100 -.1,40552 

FT-SE-A Afl-Share 152664 

MMOJ 2662653 

Dew Turk taacWtoc 

Ow Jana bid Art — 351110 

SAP Composite 41559 

S MS LUNCHTIME RATES 

Federal Funds —4{J% 
3-OOTrcasMKVId -4567% 

Long Bond 1W > « 

Y*id 7.478% 

■ LONDON MONEY 

ifc» ntortanfc &{*> 

LdhksofiBMunr. ..-Dec 101)1 (SepiOZA) 

■ NORTH SEA OIL (**«*) 

feed IMtf (MJ 516485 (ifiJ55} 

■ COLD 

New Yo* Comet (Dec) -..$3905 
London - 5366 35 


Nm Yttk hncMtae 

s 

1.53635 


London: 


$ 

1.5365 

(1533$ 

DM 

2*51 

(2-4233) 

FFr 

62996 

(62937) 

SFr 

29436 

(Z9447) 

Y 

153919 

C152J16] 

f index 

79.1 

(799) 

■ DOLLAR 


New YoA tanefttw 1 

DM 

158005 


FFr 

SMS7 


SFr 

1332 


Y 

t«U3 


London: 


DM 

1.5783 

(15805) 

Ffr 

64018 

(6409) 

SFr 

1J3 

(15336) 

Y 

106175 

(99965) 

{MR 

663 

(same) 

Tokyo Gtart Y 9657 


Anns 
— - 

uonCTU 

OAum 

(Mgaru 

C**ui 

Ktdifte 

[tanaA 

fcflvsi 

Esttna . 
fWW 
Aanai 
uamjny 


Sett! 
OnirSD 
EF * 5 
1*0000 
CfUO 
CSW0 
DKtW 

enm 

EKraj 

ruu 

ffioao 

[MUD 


Owes OIXO 
HgngKong rtSI8 
Kf^sy RldS 
MM 

Mb fcS) 
ml SMA90 
itafr LXOO 

m**> van 

Jrtt J01S) 
Mum FfcSS 
UOonon uSSlSO 
Uh iMi 


lUn UrOGO 

Ugntoo SOUS 
Udkscoo u »15 
(Mi R«S 
HQCtia NrttfO 

nm* "mjm 
Dm ORlJO 
iwo 

H CffUncB Pso6« 
ftfcrt 338000 

B35 


cm am am 
SAraWa SOU 
SrtwcnSKX 

StowtKRpKSLSD 

s.A«ca maoo 

Spain Pta£2S 
Strode* SKflfi 
Suez SFAX 
Sy*» SE5O00 
Tinua Bitite 
lutoy laraoo 
UAE Dht2J» 


IRA calls halt to 25 years of terror 


By Michael Cassatt, David Owen, 
Tim Coone and George Graham 

The high-risk effort by the 
British and Irish governments to 
create a lasting peace in North- 
ern Ireland took a historic step 
forward yesterday with the 
announcement of an open-ended 
IRA ceasefire starting at mid- 
night 

The announcement that 25 
years of violence, which has 
engulfed the UK and several 
European countries, is to end 
with “a complete cessation of 
military operations” was warmly 
welcomed in Dublin and Wash- 
ington. and more hesitantly in 
London. 

At the same time the IRA’s ten- 
ure to comply with British and 
Irish demands to declare openly a 
permanent end to its armed cam- 
paign triggered an immediate 
note of caution from Ur John 
Major, the British premier. 

Mr Major, whose standing will 
be enhanced by an enduring 
peace, made clear the govern- 
ment would not contemplate 
allowing Sinn Fein, the IRA’s 
political wing, into talks on 
Ulster's future until it was clear 
beyond doubt that violence had 
been renounced for good. 

“I don’t mind bow it is 
expressed. I don’t mind if it is 
said that the armed conflict is 
ova-, that the days of violence 
are gone for good. But 1 do need 
to know that violence M ended 
for good and that it isn’t a tempo- 
rary ceasefire,” said Mr Major. 

Dublin, however, did not share 
Downing Street's caution. Mr 
Albert Reynolds, the Irish pre- 
mier, appeared satisfied with the 
IRA statement: “A total cessation 


£ It is an historic day. 
John Major and the 
leaders of unionism 
should seize 
the moment J 

- Sim Fein president 
Gerry Adams 

C We need to be clear 
that this is indeed 
intended to be a 
permanent renunciation of 
violence, j 

- John Major, UK prime minister 

C This momentous 
decision is in keeping with 
the overwhelming . . wish 
for peace of the vast 
majority of the Irish 
people, j 

-Albert Reynolds Irish PM 


of violence is a total cessation of 
violence and I am not going to 
quibble over words.” 

Mr Reynolds continued: “There 
is now an historic opportunity to 
take the gun out of Irish politics 
for ever and to achieve a new and 
far-reaching political accommo- 
dation in a transformed atmo- 
sphere”. 

Mr Gerry Adams, Sinn Fein 



Gerry Adams clasps the hand of a well-wisher yesterday near Sinn F6in headquarters in Belfast pww* i 


president brushed aside reserva- 
tions and called on Mr Major and 
unionist leaders to "seize the 
moment”. The IRA leadership 
had “courageously created an 
unprecedented opportunity 
which brings Anglo-Irish rela- 
tions to a decisive point". 

The prime minister acknowl- 
edged that the IRA decision rep- 
resented “a great step forward" 


but he moved to reassure union- 
ists that there had been "no 
secret deals, no secret under- 
standings". 

He added:"Northem Ireland is 
part of the United Kingdom for so 
long as people in Northern 
Ireland wish to remain part of 
the UK. They will do so with the 
support of this government and I 
hope future governments.” 


Mr James Molyneaux. leader of 
the Ulster Unionists, echoed Lon- 
don's suspicions by calling on the 
IRA to take the "modest but very 
vital step” of confirming a perma- 
nent end to violence. 

Despite the government's pub- 
lic hard-line an the IRA’s omis- 
sion of the word "permanent" 
from its declaration, there were 
strong indications at Westmin- 


THE IRA CEASEFIRE 


Pages 8 and 9 

■ Prize has never been 
closer, but risks remain 

■ Clinton hails start 
of a ‘new era 1 

■ Limits of republican 
patience may face test 

Page 15 

■ Editorial Comment 
The prize in Ulster 


ster last night that ministers 
might consider an early lilting of 
the broadcasting ban on repre- 
sentatives of Sinn Fein, including 
Mr Adams. 

President Clinton who 
described the IRA statement as a 
“watershed announcement”, also 
called on the IRA to ensure that 
its violent campaign ended per- 
manently. 

The US president yesterday 
spoke to both Mr Major and Mr 
Reynolds. In his conversations 
Mr Clinton made dear the US 
government’s intention to assem- 
ble an additional aid package to 
help the peace process along. 

With the IRA ceasefire under 
way, the scale of the political dif- 
ficulties teeing all the parties 
involved became apparent 

Sir Patrick Mayhew, Northern 
Ireland Secretary, made dear 
that the British government 
intends to stick to its three- 
month “probation” period before 
talks could begin on how to 
admit Sinn Fein to the political 
process. 


Japanese court backs Fujitsu over TI chip patent 


By (USchfyo Nakamoto in Tokyo and 
Louise Kehoe in San Francisco 

A Japanese court ruled yesterday that 
semiconductors made by Fujitsu, the 
Japanese electronics and computer man- 
ufacturer, do not infringe a patent cover- 
ing the invention of the integrated cir- 
cuit or semiconductor chip, which is 
held by Texas Instruments of the US. 

The court’s decision highlights the gap 
between the two countries in the inter- 
pretation and enforcement of patent 
rights. 

The decision appears likely to Increase 
friction between the US and Japan over 


intellectual property rights. A spokes- 
man for the US trade representative said 
US trade officials were "aware of and 
interested in the case". 

Mr Richard Agnich, Texas Instru- 
ments' senior vice-president and general 
counsel, said the decision “flies in the 
face of logic and justice". The company 
would file an appeal, he said. 

The legal dispute goes back, to 1991 
when Fujitsu asked the court to declare 
that the “Kilby" patent, named after the 
co-inventor of the semiconductor chip, 
does not apply to modern-day memory 
chips. 

Texas Instruments then sought an 


injunction to halt Fujitsu's manufacture 
and sale of memory chips. 

The Tokyo district court decided that 
Fujitsu’s products did not infringe the 
Kilby patent on the ground that the 
patent covers old technology not being 
used today. For Texas Instruments, the 
decision is particularly onerous because 
the company has been fighting for Its 
Kilby patent in Japan since 1959, when 
the company filed its application with 
the Japanese patent office. It took the 
US company close to 30 years, however, 
to win the patent, which was awarded in 
1989 after opposition from Japanese com- 
panies. 


Japan has a “first to file" patent sys- 
tem, unlike the US system, which is 
based on the principle of “first to 
invent". In addition, patents in Japan 
can be challenged before they are 
granted, whereas in the US opposing 
claims are filed after the patent is 
granted. 

“We are deeply disturbed by a patent 
system that keeps a major invention tied 
up in the Japan patent office for 29 
years, and, when the patent is issued, in 
effect claims that it covers old technol- 
ogy and does not pertain to products 
made today,” Mr Agnich said. 

Japanese courts have generally inter- 


preted patents narrowly, enabling Japa- 
nese companies to obtain numerous 
“improvement patents" covering related 
developments. 

Texas Instruments has already won 
licensing agreements for the Kilby 
patent, which expires in 2001, from 16 
Japanese semiconductor makers. In 
addition to Fujitsu, Sanyo has also 
refused to license the patent although 
both companies have cross-licensing 
agreements with Texas for thousands of 
other patents. 

In mid session in New York, Texas 
Instruments stock was trading at $78%, 
down from Tuesday's close of $82%. 


US forecasts raise 
hopes for 
economic 


steady 

growth 


By George Graham 
in Washington 

The US government’s principal 
economic forecasting measure 
stayed flat in July, adding to 
economists’ expectations that the 
US may avoid the sort of boom 
and bust that has plagued most 
past expansions. 

The Commerce Department 
said its index of leading economic 
indicators, a composite of ll sta- 
tistics intended to gauge the 
strength of the economy roughly 
six months ahead, was 
unchanged in July at 101.5. 

The index has risen steadily for 


A large majority of economic 


The Federal Reserve’s policy of 


The expansion is expected to 
continue, although more steadily, 
with the Fed not needing to raise 
interest rates dramatically to 
choke off inflation. 

Yesterday's economic data 
added to the view in the financial 
markets that the economy is los- 
ing speed, and that growth in the 
third quarter of this year is likely 
to he slower than in the second. 

Only three of the index's com- 
ponents - changes in the price of 
sensitive materials, building per- 
mits, and average weekly claims 
for unemployment insurance - 
increased in July, while six ele- 
ments feU 

At the same time, the Com- 
merce Department said new 
orders for manufactured goods 
fell by 23 per cent in July to a 
seasonally adjusted level of 
$Z735bn. That takes manufactur- 
ing orders to their lowest level 
since February. 

One other indicator, the Chi- 
cago purchasing managers’ 
index, dropped to 61.6 per cent in 
August from 63.0 per cent in 
July, but showed a sharp 
increase in prices paid for materi- 
als. The closely watched National 
Purchasing Managers' index is 
due to be published today, while 
the attention of the financial 
markets is focused on employ- 
ment statistics tomorrow. 


CONTENTS 


Kohl’s 
party to 
unveil 
EU reform 
proposals 

By Quentin Peel in London and 
Alice Rawsthom m Parts 


Chancellor Helmut Kohl's 
Christian Democratic Union, the 
majority partner in the ruling 
German coalition, will today 
unveil its strategy for the next 
big reform step in the European 
Union calling for the overhaul of 
all &U institutions and formalisa- 
tion of the idea of a multi-speed 
community. 

The plan seeks to limit the veto 
rights of individual member 
states over the reform process, to 
boost the powers of the European 
Parliament to exercise demo- 
cratic control over the Council of 
Ministers and the European Com- 
mission, and to reduce the coun- 
cil itself to the role of a “second 
chamber” to the parliament 

It will cafl for reinforcement of 
a "hard core” of the EU, and fur- 
ther strengthening of the close 
relations between France and 
Germany as its driving force. 

The document will be pres- 
ented today by Mr Wolfgang 
Schteible, leader of the Christian 


Continued on Page 16 
Editorial comment. Page 15 


FTWarid Aouaea- 


-36 


EwpUdNM. 


-AS 


Leader Page . 


American News — 
WMd TraOa News . 
UKttwa . ... — 
People 


Lex , 


7 

— a 
.fi-tt 
_iz 
.is 
-IB 


UngoMA. 
Otasncr — 
TodvwtofV — 
Arts 


Mt sOftto. 


-15 

-14 

-12 

-IS 

-11 

.13 

-13 

- 2 * 


UK 

hACapMtt- 

MLCempeoas. 


-22.23 


21 

- 1*21 


-24 


Ooclungu 

GcUMartceb 

MrOplBS 36 

kL Sand Sense 21 

Ma na ged Funds .28-32 

Money Make* 32 


Room Isouse — . 
Sham Bifunutoi , 


—30 


Tisffcnol Opflcna 36 

LcreJon S£ 25 

WMS sea 3308 

Bancs 3 3, 36 

SarMV 

KonselAkpan 

ScpeatoSodon 


W THE FINANCIAL TIMES LIMITED 1994 No 32,460 Week No 35 LOMPOljT 


PARIS - FRANKFURT - NEW YORK - TOKYO 


GOON 

JUMR 


If you’re on the edge, we’d be more buyout or buy in of £10 million or 

than happy to give you a push. more. So far we’ve completed over 

As advisors to funds totalling £245 60 such transactions. And we’d 

million wc have the resources to back leap at the chance to complete 

your proposal for a management some more. 

PHILDREW^ VENTURES 

Cradn Capita! for Management Bn^Ona 


riULORKIV VKNTIIHKS. THtTOK CQl'HT, 1 1 HIXSUI'RY Sql'ARK. LONDON KCYA irn. TV. I. 071 626 8346. 
riitLnsKK vwnvnrs i» , xkt«h»ji iiv nmi ■„ i'm .iw^r haxaukbkkt urcimik ltd 


/ 


—1 





2 





I First flight 
j of the day-U. A. 


— 

m 

United 

Airlines 

The first to JFK, every day from London Heathrow. 

Como fly the airline that’s uniting the workL 
Come fly the friendly skies, R>r reservations, see 
your travel agent or call United on 081 990 9900 
(0800 888 555 outside London). 


% * 


FINANCIAL, TIMES THURSDAY SEPTEMBER 1 1994 


NEWS: EUROPE 


Project is small but carries considerable symbolic importance 

Conoco joint venture starts to 
pump oil from Russian field 


By John Thornhill In Moscow 

The Polar Lights joint venture 
between Conoco and Arctaan- 
gelskgeologia, which started 
producing oO In the virgin tun- 
dra of northern Russia yester- 
day, is being hailed as a bea- 
con of hope a mid th*> gloom 
that shrouds the Russian oil 
industry. 

When the Soviet Union fell 
apart, Conoco was just one of 
droves of western oQ compa- 
nies which came to Russia 
with high hopes of breaking 
into what was the world's big- 
gest crude oil and gas pro- 
ducer. Many other olhnen are 
now heading home disillu- 
sioned with the legislative and 
bureaucratic frustrations. 

Conoco and Archangelskgeo 
logia have succeeded where 
others have failed largely 
through sheer persistence - 
and some useful political back- 
ing from Presidents Bill Clin- 
ton and Boris Yeltsin. Their 
Ardahn field is the first to be 
developed by a joint venture 
company and the partners 
hope to make a good return on 
their $375m investment by sell- 
ing the oil abroad. 

Representatives of other 
western oil companies in 
Moscow suggest the achieve- 
ment should not he underesti- 
mated nor should the deal's 
symbolism be ignored. But. 
they stress, it is important to 
set the deal in context: the 
investment is relatively small; 
big risks remain. 

By global industry stan- 
dards, the Ardahn field. 1,000 
miles northeast of Moscow, Is 
minuscule, with peak produc- 
tion of 25,000 barrels a day 
expected by 1996. The explora- 
tion risks have also been 
slight. Russian geologists dis- 
covered oil reserves in the 
T inian Pechora basin years ago 
hut did not exploit them as the 
central economic planners 



*, RUSSIA 





Northern 


[±r \ f 

icm areaa\ j 




V 


Khaiyasa 


■ Or 


directed resources towards 
western Siberia. Moreover, the 
field is relatively straightfor- 
ward to exploit despite being 
located in the Arctic Circle. 

While proud at what has 
been achieved to date, the 
cheery Mr Constantins Ni can- 
dr os, Conoco's president and 
chief executive, is realistic 
about what remains left to do. 
“Ardalin is interesting but we 
would not have came to Russia 
just to do this project There 
are far bigger fields in the 
northern area waiting to be 
developed. Yon could be 
looking at another Alaska, a 
second Prudboe Bay. Although 
there is not one individual 
field, the Tinian Pechora 
region could produce about 
5hn-10bn barrels," he says. 

Conoco is studying projects 
which would require a further 
$5bn of gross Investment Four 
other western companies, 
Amoco, Texaco and Exxon 
from the US, and Norsk Hydro 
from Norway, have also been 
co-operating on developing 
reserves in the the same 


Nenets region white Shell and 
Saga are also aiming to 
develop other fields nearby. 
The companies are studying 
whether it would be feasible to 
build an offshore terminal han- 
dling about 450,000 barrels a 
day at a cost of f2bn. 

But before committing such 
sums, the companies say they 
nwwi a change in tomeiaH tnv 
and business legislation. "Only 
when the legal system in this 
country changes, such that we 
can operate with confidence, 
can we be optimistic that we 
can develop this region," says 
one consortium member. 

Even the Ardalin field amid 
fall victim to the ever-changing 
legislative regime. The proj- 
ect's viability is dependent on 
the continuation of a tempo- 
rary energy ministry waiver, 
specifically for the project, of 
the customary $5 a barrel 
export tax. Polar lights also 
relies on a precarious web of 10 
interlocking contracts to sell 
oil abroad. Because Polar 
Lights does not yet have a 
direct pipeline to the west, it is 


obliged to swap its oQ with 
other Rnsaian producers with 
access to western markets. 

“We all had doubts about 
this arr angemen t and. those 
doubts remain. The riiffiraiitiaa 
of getting oil to a western cus- 
tomer TnairpH things very com- 
plicated,” says Mr Anatoly 
Kazakov, general director of 
Anhangelskgeologia. 

The lack of rouble convert- 
ibility and the artificially low 
price of oil within Russia 
would ruin the project’s eco- 
nomics if those ex pori; arrange- 
ments broke down. 

Russian nationalists are a lso 
hostile to granting production 
licences to western companies. 
But the counter-argument is 
that Russia’s economic self-in- 
terest will prevail. 

Mr Kazakov says his com- 
pany and Russian federal and 
local governments wQl receive 
70 per cent of the $2bn income 
the Ardalin field is expected to 
generate over the next 16 
yean. Without such income, 
he suggests, the Russian gov- 
ernment cannot afford to 
develop the industry by itself. 
Already the government has 
delayed RbslObn (£3m at the 
market rate) of payments to 
Archangelskgeologia, meaning 
many of its workers have not 
been paid. "The government 
should declare itself bank- 
rupt,” Mr Kozakov says with 
grim humour. 

That may leave an opportun- 
ity for western companies. Mr 
Nicandros is certainly con- 
vinced of the possibility. "Rus- 
sia is probably still the biggest 
oil and gas producer in the 
world,” he says, “and to ignore 
it means you are not going to 
participate in a significant part 
of the global business. 1 There 
are risks. But you can analyse 
these thing s to death and it 
wffl just be what it will be. All 
you can do is make your best 
judgment at the time.” 



E Europe on 
the road to 
easier travel 


President Boris Yeltsin with Russian army officers at the formal military departure ceremony In Berlin yesterday 


S lowly and without ten- 
tare, a 20,000km motor- 
way system finking the 
Baltic Sea with the Aegean and 
the Black Sea with the Adriatic 
is taking shape in eastern 
Europe. 

If the planners’ dreams came 
true, same day not too far dis- 
tant cars and trucks will be 
able to speed along a virtually 
seamless highway from 
Gdansk to Gurbulak on Tur- 
key’s border with. Iran and 
from Genoa to Constanta, 
Romania's Black Sea port 
The network is already a 
quarter complete; a quarter is 
under construction. Nearly 
200km will be opened this year 
and a farther 200km tax 1995. 

Th e Tra ns-European Motor- 
way (TEM) is matched by a 
s imilar network of designated 

international rail routes, the 
Tran s-European Railway 
(TER), aimed at developing a 
coherent and efficient rail and 
combined transport system for 
eastern Europe. 

Co-ordinating these grandi- 
ose schemes, conceived well 
before the collapse of commu- 
nism in 1989, is a reticent 
United Nations organisation, 
the jgrrmnmic Commission, far 
Europe. The Geneva-based 
ECE, whose 54 members span 
western and eastern Europe 
and North America, is respon- 
sible for 50-odd panEurqpean 
transport conventions, perhaps 
the best known being the TTR 
international lorry system. 

Tackling dreadful state 
of their transport infrastruc- 
ture, and the serious bottle- 
necks at western borders, has 
become an important priority 
for the gnvur ninantB of central 
and eastern Europe. Success in 
moving towards a market econ- 
omy now depends on boosting 
exports, primarily to the west, 
while the tearing down of the 
Iron Curtain has vastly 
increased the numbers of peo- 
ple on the move. 

Yet the region (excluding 
Russia) boasts just 5,000km of 
motorways, compared with 
more than 40,000km in western 
Europe, and most of the 
remaining road network is 
crumbling. Quly a tiny fraction, 
of rail lines meets standards 
commonplace In the west. 
Stony are in disrepair, and 
countries have different techni- 
cal and operating standards 
which make it difficult quickly 
to move goods across frontiers. 

The severe recession in most 
of central and eastern Europe 
that followed the upheavals of 
1989 led to big tells in traffic. 
But now that economic activity 
is picking up, for instance in 
Poland and the Czech. Repub- 
lic, the deficiencies of the 
creaking road and refl systems 
are becoming all too apparent. 

At the same time, says Mr 
Josfi Capel Ferrer, head of the 
BCE’s transport division, the 
financial constraints an these 
countries are even tighter than 
before. Though some help has 
been promised by the west, 
notably through the European 
Union’s Phare assistance pro- 
gramme, governments will 
have to find the bulk of the 
resources to improve transport 
infrastructures themselves. 

Partly in the hope of maxim- 
ising w es tern aid, and partly 
because of the need to get pri- 
orities right, eastern European 
governments have assigned a 


Greeks clasp hands over the Albanian border 


T he rooming ehny rh ser- 
vice is normally well 
attended in the two vil- 
lages of Dervistani and K6n- 
itsa. The Orthodox ritual of 
burning candles within a gal- 
lery of saints, and the intoning 
priest with his beard and pony- 
tail, give the villagers a strong 
sense of their Greek identity. 

Their common beliefs and 
language appear to transcend 
the Albanian-Oeek border sep- 
arating the two communities.. 
But, like elsewhere in the Bal- 
kans. the church is also an 
invisible hand which is fad- 
ling tension between Athens 
and Tirana over minority 
rights. 

Dervistani and Kdnitsa are 
small Greek villages, one in 
southern Albania, the other 
about 30km away in northern 
Greece. Both their economies 
are based on agriculture, for- 
estry and remittances from 
emigres, and both have famo us 
priests. 

In Dervistani, Fr Micbaflis 
Dates. 77. was the first to con- 
duct a public religious cere- 
mony in Albania after 23 years 
of communist attempts to erad- 
icate religion. He is now vigor- 
ously campaigning to improve 
the rights of the Cheek minor- 
ity in southern Albania. Two of 
V»c parishioners are amnng the 
five on trial in Tirana accused 
of working with Greek intelli- 
gence to encourage a secession- 
ist movement in the south. 

like the Greek government, 
he thinks the trial is a set-up 


Religion and language link local 
communities, but church is also 
fuel ling discord between two 
states, writes James Whittington 
from Saranda, southern Albania 


aimed at discrediting ethnic 
Greek nationalism. His 
demands focus on better educa- 
tion and cultural activities, but 
his agenda is one of ethnic 

Inde p ewdem-e . 

“We went to see better treat- 
ment for the [100,000 or so eth- 
nic] Greeks living in Albania,” 
he says. “We want our own 
education facilities, freedom to 
teach our language and his- 
tory, and closer co-operation 
with the mother country 
[Greece].” 

From Ktaitsa, Bishop Sebas- 
txanos Economidis, 74, is trying 
to do jnst that He runs a 
church-funded radio station 
called "The Voice of Orthodox 
Greeks” which, in the words of 
its manager. Mrs Michafiickra 
Epicharis, is aimed at “educa- 
ting” the Greek community in 
south. Albania. Every after- 
noon it broadcasts Greek “pro- 
grammes of history and cul- 
ture” which the Albanian 
authorities have branded as 
“dangerous propaganda”. The 
bishop has often been amused 
of calling for a Greek invasion 
of south Albania to liberate the 
minori ty, and during the court 


case in Tirana, the state prose- 
cutor has declared him persona 
non grata. 

Priests and politics have 
become dangerously entwined 
in the southern Balkans. Last 
year, Fr Dakns's friend and col- 
league, Fr Chrysostomos Mai- 
donis, was expelled by the 
Albanian authorities from Gji- 
rokastra. the main town in the 
south, far his political activi- 
ties which resulted in another 
wave of deportations of Alba- 
nians from Greece. As a result, 
many ordinary Albanians have 
become suspicious of men who 
have taken the doth. 

In theory, Albania’s 3.4m 
population Is 70 per cent Mos- 
lem, 20 per cent Orthodox, and 
10 per cent Catholic. But as 
one ethnic Greek explained, 
the country has . never been 
fanatical in its beliefs, and 
between 1907 and 1990 it was 
formally atheist “Religion fin 
Albania] is imported,” he says. 
“Most of us are not religious at 
aQ and it is often used as a 
cover.” 

With the ten Of QQ ir m ii in tsTn , 
the Greek Orthodox churches 
have taken on the issue of 



minority rights and the ques- 
tion of secession for ethnic 
Greeks with passion. They 
have adopted a particular ver- 
skin of history to support their 
arguments which dafo as ter. 
back as the ancient kingdom of 
Epirus - an area which 
included both Dervistani and 
KGnitsa and where Pyrrhus 
Had his base in rfasrftq>1 tfmgg 
- and to the London Confer- 
ence on the Balkans in 1912 
when the Great Powers gave 
Greece the area of Northern 
Epirus up to the Shk nmh l 
river, now in central Albania. 
Things started to go wrong; 
they say, in Paris when in 1921- 
the Powers changed their 

Tnmrfg and redrew Albania as 


it is today. And than came the 
second world war and commu- 
nism. 

“After all this, it’s only natu- 
ral that our people over there 
tom to us for help," explains 
Mrs Epicharis at the radio sta- 
tion in KOrdtsa. 

While Greece continues to 
deport tens of thousands of 
non-Greek Albanians in anger 
at the trial in Tirana, visas are 
readily granted to the minority 
Greeks. Most of Dervistani’s 
young men week in Greece and 
send remittances home. 
Churches in Greece are financ- 
ing the rehabilitation of Fr 
Dakos’s chapel which was used 
under the Communists as a fer- 
tiliser store. The people of K6n- 
itsa and other towns win the 
Greek minority m Albania 
medical aid, buses, and educa- 
tional materials mid are pro- 
moting commercial links by 
exporting televisions, radios, 
refrigerators and importing 
hand-made furniture and build- 
ing stone. 

The problem teeing the still 
young but democratically 
elected government in Albania 
is how for if can let these links 
develop. A does relationship is 
one thing, but autonomy in the 
south could spell disaster. 
Growing tensions between 
Athens and Tirana is already 
distracting them from the 
urgent need to rebuild the 
country's economic and politi- 
cal structures. And tlm mare 
they damp down on political 
activism, especially when it 


concerns the church, the more 
the tension rises. 

Mr Gentz Polio, an. adviser to 

Albania’s President, Sali 
Berisha, says:' “The only way 
to resolve all this is through 
dialogue. Greece has so ter 
injected this way and we can 
only hope they will change 
their minds.” While the pofifa - 
dans refuse to talk; many 
AThanran* fear the church's 
voice will grow louder. 


THE jnNANOAL 
Published by The FfancU 

egSUKgas 

69596448 1, Trier 416193- 
in Fnmkfart by J. Waller toad. WB- 

M. Be a »d Aim c Mfa;- 


David CM. M 

P rim e r: DVM PrarifrVcrtrig aoA M gr- 
ketihg GmbH. AdmnMUwarfri* 


SBMtJSS 

Lambert, c/o The Fman 



itod. Number One -r-rr - r 
LowSon SE1 9HL, UX. StaxetaHen «f 
Hu HnaaerJ Timer (Eu rope) Ga bH 
are The ~ • - 


Financed Ti m (En n yd Ud. 


ing} Ltd, 

above me — 

Fmucal Thnet J L iwme d, 
SovthwMic Bridge, ' 


The Comas? is incorporated nwfcr 
to** of ifegtand and Wrier. OmiiB 
D-CM- BeiL 


FRANCE: PubEjWn* Director: D- 
Good. 148 Rue dc RhoH. P-75044 PW* 
Ccdex 0L Telephone (01) 4297-0621; 
Fax. (01) 4297-0629. Printer: S A. N** 
Edur, .15/21 Rue de Cairn. F-59100 
RonbmxCedcxl. Edticc Rtdiaid Lam- 
bert. ISSN: ISSN 114*2751 Coora- 
son Parifarirc No 67808D. 

DENMARK: raw w rin l Tone* (Sandhi- " 

evil) Ltd, Vhnwehfrftfteo 42A. 
DK-U6L CaparfagmK. Tcfcptemc 33 
13 44 41, ftx 3? 93. S3 55- 



critic al role to toe TEM and 
TER projects. Both projects 
identify a “core" network of 
strategic modem transport 
links built and operated to 
common standards, as well as 
a staged plan of action to put 
them in place. 

The TEM, covering eight 
eastern European nation*, was 
originally launched in 1877 as a 
north-south motorway axis. 
The plan was rapidly recast 
after 1988 to Include an extra 
7,000km of east-west connec- 
tions to carry toe big increases 
expected in traffic volumes 
once economic recovery fakps 
hold. 

The short-term emphasis is 
now also Jess on building to 
full motorway standard (cost- 
ing gsm-HOm a kilometre), 
especially where traffic levels 


A 20,000km 

network is 
spreading 
across the map, 
writes Frances 
Williams 


do not yet justify tt. and more 
on upgrading existing roads or 
building one motorway car- 
riageway (to take two-way traf- 
fic), leaving the second , for 
more prosperous times. 

Financial constraints have 
propelled some countries to 
explore build -operate-transfer 
(BOT) schemes in which pri- 
vate companies finance con- 
struction and recompense 
themselves with tolls for a 
Aral period. With the bulk of 
the motorway network in west- 
ern Europe complete, French, 
Italian apd German companies 
are trawling hopefully for busi- 
ness in eastern Europe. 

However, BOT p lans have 
been bedevilled by arguments 
over terms, and contractors 
themselves have sometimes 
been discouraged by current 
low volumes of traffic. - 
.JJpgrwfihfraxistingrafl infra- 
structure and developing com- 
bined transport installa tions, 
envisaged by the 1985 TER 
plan, is proving even more dif- 
ficult to fund than roa&bmld- 
ing. The 10 participant coun- 
tries are now concentrating on 
tackBng the most urgent prob- 
lems, for instance, by relieving 
obvious bottlenecks. 

The ECE is also laying stress 
not only on physical improve- 
ments to the rail network but 
an the need to change manage- 
ment fttrttnriftiT In 'the days of 
communism, long distance 
freight traffic was directed to 
the railways which carried, an 
average, • two-thirds of all 
tonne-kilometres (against less 
tfian a fifth for western Euro- 
pean countries). 

Now, transport operators are 
free to use the roads which, 
even in their degraded, state, 
offer quicker door-to-door 
deliveries. The result has been 
a dramatic decline in rail use. 

To cope with the new situa- 
tion, railway managere need to 
became more market aborted, 
exploit combined transport 
possibilities (road, rail and 
water) and simplify border iro- 
cednres, the ECE says. 


C . 


V 


«! I’M 


* - 1 


;• 

i . \ 


fete i’\.T V 


.1- ■ 

, •* 


•Vu v ' 


rk i-i 
ic-.'-- 




til uneir.ri 

.. * 
s C'a •-/. . 

- ■•V 1 . . . 

5:.-; „..r ■ 


IS; -4 . 


s_ . I/. 


L -' r “ • 

S** V." 

, -• •• 

- - 

S5 : -' 

vT* ~ *•*%. ■ 

J ~- : 

: : 



• 





4 






on 

to 

'■el 


• V'i'U 


IRt* 


c * 


* 


FINANCIAL TIMES THURSDAY SEPTEMBER 1 1994 


NEWS: EUROPE 


EUROPEAN NEWS DIGEST 

US to press 
Moldova plan 

American UN envoy, Ms Madeleine Albright, said 
yesterday that Washington was anxious to ensure that Rus- 
s y m troops leave Moldova and it was ready to act to encourage 
them to do so. Russia’s 14th Army W deployed In *•>»*» 
breakaway Dnestr region of Moldova since Moldovan indepen- 
dence in 1991. 

E arli e r this month. Russia and Moldova fjnaii«>d an agree- 
ment which stipulated the withdrawal of the 14th Army 
within three years. It is awaiting the approval of the Russian 
and Moldovan presidents, Mr Boris Yeltsin and Mr Mircea 
Snegur. Ms Albright said she had discussed the issue with Mr 
Snegur and the Moldovan foreign minister, Mr Mihai Popov. 
“We were discussing how the international community can be 
helpfUl in observing the departure of the 14th Army and what 
international approaches can help to keep the pressure on in 
order to make the army leave," she said. 

She said she would urge Russian leaders, when hi Moscow, 
to act without delay in withdrawing t he ir forces from Moldova 
and other former Soviet republics. “ This is not only good for 
the republics themselves, such as Moldova, but also for 
Moscow in order to have peace on its borders and in its former 
republics," she said. Moldova is the only former Soviet repub- 
lic where Moscow keeps its forces without a formal agreement 
on military bases or any other accord. Russia has signed such 
treaties with the Transcaucasian states of Georgia and 
Armenia as well as with the Central Asian republic of Tajiki- 
stan. Reuter, Kishinev 

Dutch PM sets out priorities 

The Dutch prime minister, Mr Wim Kok, yesterday promised 
“work, work and more work" from his new coalition govern- 
ment to tackle rising crime, bund prosperity and lan-nnh a 
review of foreign policy. 

Presenting his government programme to the Dutch parlia- 
ment, Mr Kok responded to criticism that his new coalition, 
which excludes the Christian Democrats and joins the Labour, 
conservative liberal, and reformist D66 parties, would prove 
fragile. The coalition has been dubbed “purple" because of the 
mix of the three parties’ political colours. The government 
took ill days to form after an inconclusive general election in 
May. 

Mr Kok, former finance minister, inherits a sound economy 
emerging from a mild recession. As part of a modestly austere 
financial package, he has pledged funds to stimulate new jobs, 
financed by spending cuts. 


Mr Kok warned that the cuts, aimed at health care, state 
pensions, higher education and child benefit, would mean 
“some painful measures". Foreign policy will be reviewed 
within two years, with a new em phasis on linking It to 
development cooperation. Reuter, The Hague 

Doubts over Scharping pledge 

Most Germans do not believe a campaign pledge by opposition 
leader Mr Rudolf Scharping to reject any pact with commu- 
nists after October’s general election, an opinion poll released 
yesterday showed. 

The poll by the Allens bach Institute said 54 per cent of those 
surveyal said Mr Scharping, leader of the Social Democrats 
(SPD), would accept communist support if it was needed to 
become chancellor. Twenty-five per cent said they believed Mr 
Scharping, who insists he would reject any communist back- 
ing when a new parliament convenes. Even among SPD mem- 
bers. only 40 per cent believed Mr Scharping; while 38 per cent 
doubted-his word and 22 per emit did not answer e ithe r way. 
The issue haw dominated campaigning Rippp the SPD in the 
eastern state of Saxony-Anhalt last month formed a minority 
state government based on tacit toleration from the Party of 
Democratic Socialism, the successors to East Germany’s rul- 
ing Communist party. Reuser, Ram 

French unemployment falls 

Further evidence of France’s economic recovery emerged yes- 
terday with the news that the level of unemployment fell 
slightly in July for the second month in succession. The 
number of people out of work in July fell by 10.600, car 0A per 
cent from June, with the overall jobless total reaching 12.6 per 
cent, or people, against 12.7 per cent to May. Rising 
unemployment has for five past four years been one of the 
toughest problems feeing France. 

The socialist government’s failure to address the issue was a 
key factor behind its defeat in last year’s partiamentary elec- 
tion and the recent reduction in the jobless figures has helped 
boost the popularity of Mr Edouard Bahadur’s centre-right 
administration this summer. Economists anticipate further 
reductions in the unemployment figures during the autumn 
and winter, albeit at a gradual pace, given that the rate of 
growth is expected to slow. Alice Rowsthom, Paris 

Survey reveals small-scale EU 

Only 7 pm- cent of the 14m businesses in tire European Union 
have more than nine employees, according to a study by 
Eurostat. Enterprises with less than nine employees account 
for around a third of EU employment and a quarter of the 
EU’s Ecui0.500bn (£8368bn) annual turnover. Small businesses 
are particularly important in Italy and Spain where they form 
the backbone of the economy. 

In Germany, France and Britain larger companies have a 
bigger share of employment. Only slightly more than 15 per 
cent of the Spanish workforce is employed in companies with 
500 people or more, against 36 per cent in Germany. The 
survey, based on 1990 figures, which are the latest available, 
also -show that the four largest economies in the EU - those of 
Germany, the United Kingdom, France and Italy - account for 
67 per cent of the 14m EU enterprises, and for 75 per cent of 
the 92m people employed in the EU. Reuter. Brussels 

ECONOMIC WATCH 


Dutch growth beats forecast 


Hetberfanda 

GOP. annual % change 
3.5 



•IQ 


1982 

SomaftOtf rt rafl m 


1983 1W 


Dutch second quarter gross 
domestic product rose a pro- 
visional 22 per emit year-on- 
year, the Central Bureau of 
Statistics said yesterday. Ana- 
lysts had forecast a rise of 
about 1.9 per cent Without 
the effect of an extra working 
dav in the period, growth in 
the second quarter would 
have risen around 1.7 per cent 
from tiie same period in 1993, 
the CBS said. Corrected for 
seasonal factors, GDP rose 1J 
per cent from the first quarter 
of 1994. The growth in the 
most recent quarterly report- 
ing period was led by expan- 
sion of nearly 3 per cent in 


th P nrivate sector, the CBS said, while public sector growth 
Uie pivare >ecw moderate L5 per emit The value of 

quarter compensated for a decline m the first 

HSSSWB widened to SUta (£lbn> inthe first 

SJf^FSi compared with $l-53bn in the same period last 
half of 1994, compare vesterday. The current account 

~ 

below Cbm indeX 13 per cent year-on-year in 

* in April, the National Statistics 

rise exceeded the 11 per cent yearon-year 
X b pries instate same month. 


Catalans and Socialists engage in political horse-trading 

Spain seeks budget deal 


By Tom Bums in Madrid 

Mr Felipe Gonzalez's minority 
Socialist government yesterday 
began the tortuous process of 
crafting an agreement on next 

year's budget with the main 
Catalan nationalist coalition, 
cautious of giving too much 
away on home rule and of irri- 
tating its own left wing with 
conservative policies. 

The wary tone of the annual 
bout of horse-trading was 
underscored by Mr Miquel 
Roca, the chief budget negotia- 
tor for Catalonia’s Convergen- 
cia i Uni6 (CiU) centre-right 
coalition, who said an initial 
meeting with Mr Pedro Solbes, 
economy minister, had 
revealed “ areas of agreement 

and of diaagnppmant " 

Mr Solbes* 1995 budget, due 
before parliament not later 
than September 30. requires 
the support of the 17 CSU depu- 
ties to pass through the legisla- 
ture. The Catalan coalition 
lacked last year’s budget, fol- 
lowing the Socialists' loss of 
their majority in the general 
election, after a concession 



Pedro Solbes: starting annual budget horsetrading 


allowing regional governments 
to control 15 per cent of the 
income taxes raised in their 
territories. 

CIU, the main political 
grouping in wealthy Catalonia 
where it has a predominantly 
small business constituency, 
also brought the government 
round to spending cuts and to 
overhauling the rigid domestic 


labour legislation. This year it 
has raised the stakes: it wants 
power sharing between Madrid 
and the regional executives 
over the distribution of Euro- 
pean Union funds to Spain, and 
is seeking lower social security 
contributions by employers, as 
well as farther easing of hiring 
and firing procedures. 

Officials are r p nr»mftri tha t 


the EU funds issue could be 
contested by other regions and 
fuel claims that the CiU is bent 
on gaining advantages for Cat- 
alan nationalism at the 
expense of the principle of 
national solidarity. 

In Andalucia. Spam’s most 
populous region where the 
Socialist party lost its majority 
in local elections in June, oppo- 
sition parties joined forces in 
the regional parliament last 

month to reject the 15 per cent 
tax concession built into this 
year’s budget 

They claimed it favoured 
Catalonia over poorer regions 
where fiscal revenues are 
much lower. 

The Socialist party’s left 
wing and the l&atrong Com- 
munist contingent in the Mad- 
rid parliament are meanwhile 
certain to oppose both cuts in 
social security contributions 
and increased deregulation of 
the labour laws. 

These Catalan initiatives, 
however, are broadly backed 
by the conservative Partido 
Popular, the main opposition 
party. 


Helmut Kohl’s nominee moves into a top job in Brussels 

German in EU hierarchy 



By Lionel Barber in Brussels 

Dr Jttrgen Trmnpf is hardly a 
household name. But today in 
Brussels, Mr Trmnpf, formerly 
the top civil servant at the 
German foreign ministry in 
Bonn, moves into one of the 
most powerful jobs in the EU 
hierarchy. 

The post of secretary-general 
of the European Council can- 
not compare with the presi- 
dent of the European Commis- 
sion, a job which Mr Jacques 
Delors has transformed over 
the past 10 years into the pub- 
lic face of Europe. But its 
attractions are no less reaL 

The selection of Mr Trmnpf 
reveals much about the dis- 
creet manner in which Ger- 
many prefers to wield influ- 
ence in the EU: but it also 
reflects a shift in the balance 
of power away from the Com- 
mission to the Council and the 
European Parliament 

The secretary-general serves 
as chief adviser to the Council 
of Ministers, the leading deci- 
sion-making body in Brussels; 
and as counsellor to the rota- 
ting EU presidency- Supported 
by a modest but slowly 
expanding secretariat, he is 
also a high-level diplomatic 
intermediary between the 
member states, particularly 
ahead of EU summits which 
set the broad direction and 
policy of the Union every six 
months. 

In this capacity, the sec- 
retary-general serves as the 
guardian of the EU’s institu- 
tional memory. He is charged 


with reminding member states 
of fiie commitments and obli- 
gations which they have 
undertaken. Thus, what looks 
like an innocuous bureau- 
cratic function is, in feet, a 
powerful constraint on the 
(often misplaced ) ambitions of 
incoming EU presidencies and 
a guarantor of continuity in 
EU policy- and derision-mak- 
ing. “Used property, the post 
of secretary-general can 
become the power behind the 


mg prime minister of Luxem- 
bourg, who was nobody’s first 
choice as Commission presi- 
dent 

Mr Trmnpf, 63, a classical 
philologist by training, stud- 
ied in Athens In the mid-1950s. 
An avowed Anglophile, he 
entered the German foreign 
service in 1958 -the date 
when France, Germany, Bene- 
lux and Italy concluded the 
treaty of Borne which created 
the (then) European Commu- 


The appointment of Mr Trumpf followed 
pressure from Chancellor Kohl who 
made it known in Brussels that Germany 
was under-represented at the highest 
levels of the EU’s bureaucracy 


throne," says one EU official. 
Under Mr Niels Ersboll, Mr 
Trumpfs long-serving Danish 
predecessor, the influence of 
the Council secretariat expan- 
ded. Its legal team - headed by 
Mr Jean-Claude Piris-was 
instrumental in drawing np 
the compromise which allowed 
Denmark to resubmit the 
Maastricht treaty to a second 
referendum after voters had 
thrown out the first version in 
June 1992. It also has a 
nascent foreign policy co-ordi- 
nation unit headed by Mr 
Brian Crowe, a senior British 
diplomat 

The question is whether the 
decline in influence of the 
Commission will continue 
once Mr Delors hands over to 
Mr Jacques Santer, the outgo- 


nity. Coincidentally, Mr 
Trmnpf a career has been built 
on making the ideal of Euro- 
pean integration a reality, fie 
has worked exclusively on EU 
affairs since 1970, latterly as 
EU ambassador In Brussels. 

Like many of bis generation, 
Mr Trumpf shares Chancellor 
Helmut Kohl’s and his former 
boss Hans-Dietrich Genscher's 
determination to bind Ger- 
many into an integrated 
Europe. 

Though mild of manner and 
usually sporting a friendly 
smile, Mr Trumpf has a stub- 
born streak when it comes to 
defending Germany's commit- 
ments to Europe, He is a 
staunch advocate of European 
monetary union and the 
imperative of the Franco-Ger- 


man alliance. He miilM-gh»ndc 
public opposition in Germany 
to giving up the D-Mark in 
favour of a single European 
currency, but insists that Ger- 
many sticks to its treaty com- 
mitment. 

The temporary crisis in 
Anglo-German relations in 
September 1992 caused by the 
forced withdrawal of sterling 
from the Rxrhangp Rate Mech- 
anism pa in pH him. He was less 
than comfortable with the pre- 
sentation of the Bundesbank's 
case against a premature low- 
ering of German interest rates. 

During his five-year term 
(which coincides with tbe 
respective terms of the new 
European Parliament and the 
Commission president), Mr 
Trumpf will deal the 1996 
inter-governmental confer- 
ence, as well as preparations 
for future EG membership for 
the east Europeans, Cyprus 
and Malta. 

It is widely predicted that an 
expansion of the EU beyond Its 
present planned membership 
of 16 will require a further 
dilution of national sover- 
eignty, mainly through 
streamlined decisionmaking. 

The appointment of Mr 
Trumpf followed pressure 
from Chancellor Kohl who 
made it known in Brussels 
that Germany was under-rep- 
resented at the highest levels 
of the EU. bureaucracy. Ger- 
many has also taken a close 
interest in the development of 
the European Parliament, 
where Mr Klaus HSnsrh has 
just been voted president. 


Unease inside Moslem Paris 

Francis Ghiles reports on how immigrants are coping with a clampdown 

rT^ hp tipaiTV rviHHncr nf nnlipv in Alroria 


T he heavy policing of 
areas of Paris inhabited 
by large numbers of 
Moslem immigrants, following 
the killing of five French offi- 
cials in Algiers last month, 
appears so for to have been 
well received by French public 
opimon. 

The policy, announced by Mr 
Charles Pasqua, the minister of 
the interior, won the support of 
71 per cent of respondents to 
one poll taken in mid-August 
who said they trusted the gov- 
ernment to "avoid the risk of 
terrorism". Some 57 per cent 
agreed that repeated identity- 
checks by security forces were 
"efficient and dissuasive". 

Weeks after the killings, 
with newspapers carrying 
daily reports of further vio- 
lence and deaths in Algeria, 
the police are still out in force 

in the nortb-African populated 
districts of larger towns, 
although the tension is now 
easing. However, in such 
north-African strongholds as 
Barbds, near Montmartre, 
shops dose earlier and cafes 
are quieter than usual Same 
immigrants have even aban- 
doned their customary Friday 
prayers at the local mosque for 
fear of police spot-checks or 
being caught up in random 
trouble. 

Older immigrants, mainly 
Algerians, fear that tbe wors- 
ening violence in their country 
could spill over into terrorist 
acts in France. They remember 
all too clearly that the Alge- 
rian war of independence was 
fought out in the streets of 
French cities as well as in 
north Africa, 

But they also fear growing 
racism encouraged by indis- 
criminate political and media 
rhetoric. Mr Dahl Boubakeur. 
rector of the Paris mosque, has 
expressed his concern that tbe 
"fragile consensus" which has 


France expels 20 Algerian 
detainees to west Africa 

Tbe French authorities yesterday expelled to the African state of 
Burkina Faso 20 of the 26 Algerians who have been detained at a 
military base to nearly a month as part of the BaDadur govern- 
ment’s anti-terrorist clampdown, writes Alice Rawsthorn in 
Paris. 

Mr Charles Pasqua, the pugilistic interior minister who last 
month orchestrated the detentions after a radical moslern group 
claimed responsibility for the assassination of five French 
nationals in Algeria, said the expulsions should act as "a lesson 
to anyone who doesn't respect the laws of the land”. 

Tbe Interior Ministry declined to comment on what would 
happen to the six Algerians still being held under heavy guard 
at the disused army barracks in the village of FoDembray on tbe 
outskirts of Paris. However, Mr Said Magri, a Lille pizza parlour 
owner who went on hunger strike after being Interned in early 
August, was yesterday allowed to return to his home. 

Mr Pasqua came under fire from legal groups for sanctioning 
the original internment of the Algerians and for yesterday’s 
expulsions. 


grown up in recent years 
between many immigrants and 
French society is coming under 
increasing strain. 

The greater police activity 
has yielded what appears to be 
a very mixed bag of alleged 
terrorists, reminiscent of a sim- 
ilar crackdown nearly a year 
ago in response to the kidnap- 
ping of three consular officials 
in Algiers. One of tbe two 
dozen Islamic Salvation Front 
(FIS) sympathisers detained at 
the Follembray barracks, 
100km north-east of Paris, is 
the the activist Mr Ahmed 
Simozrag. who acted as lawyer 
for Mr Abassi Madam, the 
leader of the FIS who has spent 
the last three years in an Alge- 
rian jafl. Others are self-pro- 
claimed imams or run book- 
shops which stock FIS 
literature. Some bad weapons 
and considerable sums of 
money when picked up. 

Critics of Mr Fasqua’s policy 
argue that he does not differen- 
tiate between the FIS, with its 


armed wing in Algeria, the 
Islamic Liberation Army (AIS) 
which has c ondemn ed the kill- 
ing of foreigners, and the hard- 
line Islamic Armed Group 
(GIA) which claims to be 
responsible for the deaths of 
the 59 foreigners killed over 
the past 12 months. As a 
result, they feel that the minis- 
ter is inviting reprisals on 
French residents in Algeria 
and tempting the FIS to take 
its fight onto French territory. 

Unlike Mr Alain Juppe, the 
minister of foreign affairs, who 
has called for a dialogue 
between all parties to the con- 
flict in Algeria, Mr Pasqua has 
given his unstinting support to 
the military-backed regime. Mr 
Pasqua’s involvement with 
Algerian affairs can be traced 
back to the days when he 
founded the Service d’Action 
Civique (SAC) to fight settlers 
who, between 1959 and 1962 
had regrouped in the Organisa- 
tion de l’Armfie Secrete (OAS) 
to fight General de Gaulle's 


policy in Algeria. 

Mr Pasqua’s supporters 
argue that there is no such 
thing as a “moderate” funda- 
mentalist. Ironically, since gov- 
ernment-backed attempts in 
the mid-1980s to integrate 
Immigrant children in the 
poorer suburbs failed, mayors 
of cities with large immigrant 
populations have often turned 
to imams in the battle against 
crime and drugs. 

Young unemployed Bezos, as 
French-bora north Africans are 
called, found solace in Islam 
and are proclaiming their Mos- 
lem faith in growing numbers. 
Traders have erected signs 
which distinguish their outlets 
from other, "non-Moslem" 
shops. 

A sharp rise in the number 
of TV satellite dishes in north 
African suburbs has allowed 
immigrants increasingly to 
tune in to non-French televi- 
sion 

An estimated 3m Moslems 
live in France today. 500,000 of 
whom are French citizens and 
the children of older immi- 
grants. Of this total, 800,000 are 
Algerian, 500,000 Moroccan and 
200,000 Tunisian Jt is more a 
patchwork of groups than a 
homogeneous community, 
however, .and the French 
authorities remain extremely 
nervous at any sign of funda- 
mentalism spreading. 

But the real fear is based on 
the eventual outcome of the 
conflict in Algeria. Should the 
fundamentalists come to power 
in Algeria before next year’s 
French election. Algeria and, 
by extension, the values propa- 
gated by radical Islam, would 
take centre stage in tbe presi- 
dential campaign. That is a 
prospect relished by few 
Frenchmen, other than right- 
wing supporters of Mr Jean- 
Marie Le Pen, and even fewer 
immigrants. 


SS& ifciye* s' 



Non-stop 
twice a day-U. A. 



United 

Airlines 

Uniting London and Washington D.C. non-stop twice 
a day from Heathrow. Come fly the airline that’s 
uniting the world. Come fly the friendly skies. 
Fbr reservations, see your travel agent or call 
United 00 081 990 9900 (0800 888 555 outside London). 



i m mwumhhw 


4 








Hz > ■: 





: -ii . ■ ■*.'« 

v*f s - 




it.: 



ft 





.■.Vj'i'.-. 



mB* : : 



Non-stop 
twice a day-U.A. 

IF 

United 

Airlines 


Uniting London and San Francisco non-stop twice 
a day from Heathrow, Come fly the airline that's 
uniting the world. Come fly the friendly skies, 
for reservations, see your travel agent or call 
United on 081 9909900 (0800 888 555 outside London). 



FINANCIAL TIMES THURSDAY SEPTEMBER I J994 


NEWS: INTERNATIONAL 


Population delegates are putting themselves in danger’s way, militants warn 

Fears of violence stalk Cairo conference 


By Mark Nicholson in Cairo 

• The glee with which 
the Egyptian govem- 

nient originally 
. greeted the UN’s 

selection of Cairo as 
host to next week’s 

International Confer- 

ence on Population 
rtlBaH and Development 

ff®T looks increasingly 

■■ tinged with appreben- 

siaa as the hordes of delegates, jour- 
nalists and assorted expats start to 
arrive. 

After two years’ hitting the head- 
lines for Islamic militant violence, 
publicity which devastated its gutter- 
ing tourism industry, Egypt was able 
to point proudly to the conference as 
evidence of the highest confidence in 
its control of domestic security. The 
prestige of the gathering was also 
taken as acknowledgment of Egypt’s 
central role in the Middle East and 
Moslem world. 

But as Monday’s offiHai opening of 
the conference nears, its hosts have 
reason to feel anxious. Not only has 
the violent and mi te** 1 * 1 Gamaa al-Is- 
lamiyya re-emerged after several 
months' relative sDence to warn visi- 
tors that they "are putting themselves 
in danger’s way" by at tending , bat 
the debate about the conference’s 
a gwufa haft suddenly reared into an 


awkward religions battle which seems 
to have caused one of Egypt’s 
staunchest regional allies, Saudi 
Arabia, to boycott the affair alto- 
gether. It has put Cairo firmly on the 
defensive in its domestic political tus- 
sle with Islamic conservatives. 

The government has bait every 
bone to assure the greatest possible 
security for the conference, which 
will attract 15.000 delegates^ with an 
assortment of prime ministers, vice- 
presidents and celebrities. The capi- 
tal's main routes are dotted with 
white-uniformed police, and parking 
has been banned around wmfn 
hotels, which resemble minor milit ary 
encam pm ents 

Until a week ago, Cairo could claim 
with some confidence it had won the 
upper hand in its assail* on violent 
Islamic extremists. Violence contin- 
ued in militan t hotbeds around Aastut 
in Upper Egypt, Gamaa al-Islamiyya 
had failed to pull off attacks on tour- 
ist targets for almost five nvtnthv, its 
flow of faxed warnings had abated 
and the capital had for months been 
free of even minor incidents. 

But last Friday, Gamaa resurfaced 
to claim credit for an attack on a 
group rtf Spanish tourists in Upper 
Egypt in which a young Spaniard was 
killed. Last weekend it condemned 
the “conference on licentiousness” 
and made its warning to attending 


The result has been to remind the 
government, and aH Hvmm a ttending 
the conference, that however success- 
ful it has been In constraining mili- 
tant violence, it has foiled to ettmi- 
nate it. Few diplomats or other 
bbservers would pronounce with any. 
confidence that the next 10 days win 
pass without a single incident “It Is 
an enormous test,” says a di plomat 


‘The militants know 
that the smallest 
incident over the next 
few days will get 
them big headlines’ 


“The militants will know that the 
smallest incident over the next few 
days will get than bag headlines.” 

- But the headlines surrounding the 
conference to date have already been 
discomfiting enough for the govern- 
ment That the conference’s proposed 
final text has became the focus of a 
furious battle between Roman Catho- 
lic and Mo slem conservatives and the 
majority of the other 170 states repre- 
sented at the meeting, who have been 
working on the draft fir same .two 
years, is embarrassing enough. It has 
already led to the boycotts by Saudi 


Arabia and Sudan, and . is likely to 
have been factor in the decisions of 
Turkey's Premier Tancu CSQsr a n d MS 
Begum flfa, Bangladesh's 

prime minister, not to attend. 

Worse, for the government, how- 
ever, la tiie ammunition the row over 
the draft text has handed Egypt's reli- 
gious conservatives, particularly the 
Moslem Brotherhood, to which Presi- 
dent Hosni Mubarak’s re gime denies 
status as a political party and has 
done all it can in recent months to 
counter in its increasingly successful 
infiltration of powerful professional 
associations. 

The government is suspicious of the 
Brotherhood's position in relation to 
extremist and violent mili tant groups, 
despite the Brotherhood’s constant 
assertion of its moderation. It recently 
excluded the Brotherhood from a 
national political ateingm^ saying It 
did not exist as a political group. It 
has done all it can to try to diminish 
the Brotherhood's religions and politi- 
cal authority, in favour of its own 
state-sanctioned Mamie voice, which 
has traditionally issued from the Al- 
Azhar university mosque, one of 
Mam’s oldest seats of instruction. 

But the Al-Azhar earlier this month 

TwnArf the f w w nwwit an unpteftft - 

ant surprise by condemning the con- 
ference as nnTsIfltnic . It accused tibe 
draft text of condoning homosexual- 
ity, abortion and premarital and ado- 


Birth-rate successes moderate Iran’s stance 

Scheherazade Daneshkhu on attempts to rein in alar ming fertility rates as population hits 60m 


T he Iranian government's 
opposition to next 
week’s United Nations 
population conference is not so 
great that it will join Saudi 
Arabia and Sudan in boycott- 
ing it 

Iran is sending a delegation 
which it hopes will “adapt the 
final document to incorporate 
religious ethics". 

Criticism of the Cairo confer- 
ence centres on the pragmatic 
approach taken towards issues 
such as extramarital and ado- 
lescent sex. 

Mr All Reza Mayandi , Iran's 
health minister, said earlier 
this week, that the draft docu- 
ment "seemed to have disre- 
garded the religious views of 
the Islamic worid and formu- 
lated the text with a sense of 
sexual liberty”. 

Iran's own religious ethics 
underwent revision toward 
population control in 1988, 
when the government recog- 
nised the severity of the coun- 
try’s high population growth 
rate. The average population 
growth rate erf 3J3 per cent a 
year In the early 1980s was 
among the highest in the 
world. 

The Islamic government. 


POPULATION M (RAM 

Population 

(m) 1984 

PopiSadon 
(mj 2025 

. Ami 090 
grawlb rate 
% 1980-96 

Par cant 
urban 
1882 

FsrtHy 

ratt/woman 

1880-95 

Adiit 

Btanicy 

M/P 

1980 

r* . ■ ■ ^ , 

rainy 

ptannbg 

UMTS |%) 

1918-98 

GW par 
eapta 
IUS 8 J 

1981 

% of cantral govL 
.oxpontfitura 1981 
Eduagaon lloaHh 

602 

144.6 

2.7 

56% 

6j0. 

65/43 

65 

2.170 

209 79 

SanrUfm 


which took over after the 1979 
revolution, laid greater empha- 
sis than before on early mar- 
riage and the woman’s role as 
wife and mother and saw no 
reason to encourage birth con- 
trol 

It welcomed the growth in 
population, seeing it in terms 
of increased resources to build 
the country into an Mamie 
model By the mid-80s, how- 
ever, concerns about the econ- . 
omy led td fears that^he high * 
population, growth was a threat 
rather than an aid to economic 
development 

Iran’s population grew from 
just over 37m at the beginning 
of the revolution in 1979 to 57m 
by 1986, an increase attributed 
to the lads erf a family planning 
programme combined with 
improved health care since the. 
1960s. Today, Iran’s population 
Is believed to stand at mare 
than 60m. 


Implementation of a family 
planning programme in 1988 
has witnessed a drop in the 
annngl average growth rate 
from the &9 per ceut .peak to 
2J? pa cent last year and down 
further to L8 per cent in July, 
according to government fig- 
ures. 

Demographic expats, while 
acknowledging that Iran has 
been successful in controlling 
its population growth, are scep- 
tical of ■: these figures. They - 
argue tiiat such^ rapid popula- 
tion decrease is impossible in 
such, a short period of time and 
cite the need for strengthened 
data collection and statistical 
analysis. 

The most reliable figures are 
those of the country’s census, 
taken every five years. This 
showed an annual average 
growth rate of 29 per cent in 
1991, well above the current 2 
pa cent growth rate for devel- 


oping countries. Subsequent 
figures have been based an less 
reliable aamp leg- 

Mr Shu Yun Xu, Iran coun- 
try director at the United 
Nations Population Fund 
(UNFPA), says that despite the 
controversial figures, Iran’s 
family planning programme 
has been “a great achieve- 
ment”, partly because of the 
strength of the govern ment's 
commitment “ft haa been sup- 
-portive of all contraceptive 
methods, including mala steril- 
isation. Only abortion is not 
allowed." 

The main thrust of the gov- 
ernment’s population control 
programme has been based an 
an increased supply of contra- 
ceptives, the training of rural 
midwives and counselling in 
family planning techniques. 
The Ministry of Health, which 
established a Fertility Regula- 
tion Council in 1988 to fmple- 


meni the programme, reports a 
decline in total fertility from 
8.4 chil dren per woman in 1988 
to 425 in 1993. 

Increase use of contracep- 
tives has been partly fuelled by 
the lack nf family planning sar- 
vices for almost a decade. An 
active family planning pro- 
gramme was launched under 
the Shah’s regime, so the 
implementation of the current 
programme has been relatively 
easy given the public’s existing 
awareness. 

Another reason for the suc- 
cess of the family p lanning 
programme has been the exis- 
tence of a relatively good 
health infrastructure which, 
according to UNFPA reaches 
60 pa cent of those living in 
the countryside and 90 per coit 
of the majority urban popula- 
tion. Mr Xu said: “The primary 
healthcare network is very 
good especially in rural areas 


and the infrastructure is much 
better than for many Asian 
countries." 

A women's health volunteer 
programme in the poor sub- 
urbs of southern Tehran has so 
far produced good results and 
is to be extended. Under the 
progra m me, women volunteers 
act as family planning counsel- 
lors in areas which are not 
served by the primary health- 
care network. 

Iran has a relatively high lit- 
eracy rate of 74 per cent and 
girls’ enrolment in primary 
school is nearly as high & that 
of boys.. Use- spread of educa- 
tion and literacy has increased 
a widespread desire for smaller 
famffles . 

Despite the success of the 
programme •? to date^.-the 
UNFPA says the tasks ahead 
are atm “formidable’ 1 . -A rela- 
tively large number of Irani- 
ans, bran in the baby-boom of 
1976-1986 will be of child- 
bearing age from 1996 onwards, 
so fertility rates will 
increase. 

Since G5 per cent of the popu- 
lation is under the age of 25, 
there is a need for even more 
emphasis to be placed on edu- 
cation 



Prime Minister Chandrika Kumaratunga, flanked by her information mi n i ste r , announces the 
partial lifting of an embargo on the island’s north, as a preliminary to ending the Tamil war ap 

Sri Lanka to investigate 
‘three business deals’ 


By M o nryn de SBva in 
Colombo and Reuter 

Sri Lanka’s new government 
will investigate three 
multi-million dollar business 
(teals set up by the country's 
previous rulers, Mrs Chandrika 
P unrineanflfkp Kumaratunga, 
the newiy-dected prime minis- 
ter, said yesterday. 

The deals, a S73m (£48.6m) 
arms agreement with Russia, 
the purchase of three Airbus 
jetliners, and the import of 
5,000 buses from India and 
Britain, would be investigated 
by the Finance Ministry, she 


Th the anus deal 10 pa cent 
has been paid hi an unconven- 
tional manner without follow- 
ing jaocedure," she alleged. 

According to a report by the 
army’s Direc to r ate of Electrical 
and Mechanical Engineers, 
obtained by Reuters this week. 


a consignment of eight BMP-2 
infantry fi ghting vehicles also 
had defective engines and 
steering systems, despite Rus- 
sian assurances the vehicles 
would be fully overhauled and 
defects repaired. 

A second cargo of eight 
BMP-2s arrived last week and 
is waiting at Colombo airport, 
army officials said 

They were part of a contro- 
versial arms deal with Russia, 
now suspended by the govern- 
ment, for 200 armoured 
vehicles, gunboats, helicopters 
and transport aircraft, fa use 
in an offensive a gainst Tamil 
guerrillas fighting for indepen- 
dence fn the island's north and 


Mrs Kumaratunga said Air- 
bus Industrie had agreed to a 
Ifl-day grace period to sign an 
agreement, earlier scheduled 
for last Monday for the deKv- 
ery of three A34WW0 jetfinere. 


“We are studying the agree- 
ment,’’ she added. 

Mr Dharmaslri Senanayake, 
Aviatio n Mi nister, said the 
$300m Airbus contract, critic* 
ised by the People’s Alliance 
when it was in opposition as 
being too extravagant, would 
not be cancelled because of 
international obligations. 

Officials of the People's Alli- 
ance coalition, which wan the 
August 16 national poll have 
accused unnamed officials of 
receiving “commissions”. 

Mrs Kumaratunga said the 
treasury had overspent Rs33bn 
(£433m) under the former 
United National Party govern- 
ment which ruled for 17 years. 
“Because of this deficit, the 
Central B ank was about to 
print money- I had to stop 
that” The Prime Minister, who 
is also the minister, 

said riie was looking at ways of 

bridging the gap. 


some 


PNG discerns 
light amid the 

Search for peace will be right at the top of 
new premier’s priorities, Nikki Tait reports 



S ir Julius Chan, Papua 
New Guinea's new prime 
minister took over the 
leadership reins with relative 


PapuaNaw 


Ftom hoe on, however, life 
for the Chan regime may not 
be so easy. Sir Julius, Papua 
New Guinea prime minister for 
a brief two years in the early 
1980s, and its first finance min- 
ister after independence in 
1975, feces three main Issues. 

The first is the situation cm 
the island of Bougainville, 
where the government has 
been fighting a guerrilla war 
with local secessionists for 
more than five years. The tac- 
tics of both sides have been 
condemned by organisations 
such as A m nesty International , 
and international l ymi nw Han 
rained down. 

There are, however, some 
hopeful signs. Private contacts 
between the government and 
the Boogatovffie Revolutionary 
Army have been getting under 
way in recent mouths, and Sir 
Julius, in his forma role of 
foreign minister, had been due 
to fly to Honiara, in the Solo- 
mon Islands, later Wife week to 
meet secessionist leaders. 

He quickly confirmed that 
tins visit will go ahead. “Peace 
is vital: it’s very much top of 
the priority list," Sir Julius 
said, although he was less pre- 
cise about concessions which 
might be (fitted to the seces- 
sionists. 

The second, even more 
Intractable, problem is the 
economy,- which suffered a 
serious blow in 1989, when the 
Bougainville tfi sprite forced the ' 
island’s large Panguna copper 
mine, operated by Australia’s 
GBA, to dose. The mfrw* had 
been providing about 30 per 
cant of the country's export 
earni n gs, and accounted for 
some 10 pa cent of its gross 
domestic product. 

At first, PNG seemed to 



L r ■ .v iv 

j VttJSS&ilA- 

r. ■\iir.y 

fc r -^ 


weather the Panguna loss 
fhirly welL Gross domestic 
product fell from $3.5bn 
CM®) in 1989. to $&2bn the 
following 1 year, but growth 
then picked up as the Porgera 
goldmine and Kntuhn Oil 
projects came on stream. It ran 
at doubled! git rates in 1992 
and 1933. 

However, despite efforts to 
reduce public spending in line 
with diiwiTiifthed means, the 
budget deficit mounted to dan- 
gerous levels in the early 1990s, 

with actual government expen- 
diture outstripping budgeted 
sums by significant margina. 
The government deficit, which 
had stood at only L2 pa cart 
Of GDP in 1989, rose to 5 l 6 pa 
cent of GDP in 1992, and 7 pa 
cent last yea, according to the 
lat est Asia-Pacific Economics 
Group report 

With growth likely to evapo- 
rate in 1994 as Ebe forgera and 

Kutobu contributions ease oft, 
Mr Masket Iangalio, Wlngti’s 
finance minister. Had warned - 
that his country could be head- 
ing for bankr u ptc y . . 

The third issue of pressing 


interest to western markets, 
and closely related to the.coun- 
try's economic situation, is the 
country's resources policy. 
This has been the focus of 
much confhsian recently, with 
Mr jfangafio at open odds with 
Mr John TCa pntin , the fo mtar 
mining minister 

The fiercest tussle has come 
ova the proposed A$lbn 
(£487m>phis gold mine an. the 
ol Lihir, which is a joint 
venture between Britain's RTZ 
and Ntugtoi MHtHig controlled 
by Canada's HatHo. TMnmrtafn. 

The original plan was split 
funding between a A$4Q0m 
share issna and debt financing, 
with the two partners and the 
Papua New Guinea govern- 
ment all holding stakes in the 
project 

Since than, there ha« been 
furious debate ova whether 
the PNG government should 
stick to a provisional agree- 
ment to involve Malaysia’s 
state-owned Malaysia M i nin g 
Corporation, at an early stage 
in return for assistance with 
funding, and what equity enti- 
tlements should he offered to 
landowners. 

The required “special mining 
lease’, due to be granted in ear- 
ly-1994, has still not material- 
ised. 

In Australia, mining execu- 
tives seemed to he holding 
their breath, and hoping that 
the chang&of government will 
mean a more pragmatic 
approach to Papua New Guin- 
ea’s economic difficulties, 
and thus a smoother ride 
for would-be project develop- 
ers. 

One; involved with the Lflnr 
project,, suggested Sir' Julius 
would probably. wantto put Ms 
own stamp on the mma deci- 
sion. but would appreciate the 
economi c boost it oould even- 
tually bring: “I don't.. flunk 
they can. afford not to go 
ahead,” he said. 



lescent sex. The Brotherhood 
promptly agreed with toe condemna- 
tion, branding the conference an 
imperialist attempt by the west to 
curb population growth in the Mos- 
lem world. 

That the row ova the draft text has 
handed the Brotherhood a powerful 
political platform is clear from toe 
feet that the government has been 
forced to reply, defensively, that it 
could not condone anything in the 
final document which ran contrary to 
Sharia, or Mamie, low. 

“The government cannot oppose the 
Brotherhood,'’ says Mr Essam al-Ar- 
ian, a doctor and Brotherhood spokes- 
man, “because society feels we are 
moderate and active. They have no 
choice but to have frill dialogue with 
us." 

The full political consequence of 
this row for the government, and the 
implications for its own population 
policies will take modi longer than 
the the conference to shake out Lead- 
ers of the Brotherhood have their eyes 
firmly an next year’s party elections, 
which they are Kkeiy to contest in 
informal alliance with the Labour 
Party. . 

Meanwhile, the conference hosts 
can only hope at least for another 
incident-free fortnight in Cairo, erne 
which might help to restore the city's 
currently fully-booked hotels to their 
former profitability. 


jfr 

L f‘ ,r 

jV*’ 












I O’. .-" 




-■ "’.I , 


r J 


aie hbt afar 


*-■ *:*• 
SiLZ 

ZM *•••• • ' _ 

ss :z. 

893 rxi Tav 

. 

’V— .. 


ft =.“*■•=- 
, T . 

„ • 

■*- ’-a-T , :• 

-j ■ 
; . 


i-* ■ . •• • 






■yBil ' 


f*® .. .. . 


treat) 

lavs 






Wkg. . 


W V : • 

Sfe.;;' * v" ” 


... * . - , . 

IS©-* 







5 




"X* . 


...-.I 


t, 

- * 


financial times 


THURSDAY SEPTEMBER I 1994 


; i ! 1 


s t a net 


• \ * 


SOUK' 


«v 


4~-H * 


00 l; 


i Jn 


<‘iic e , 


NEWS: INTERNATIONAL 


Building 
boost for 
Japanese 

economy 

By WHUam Dawkms 


Evidence of a modest recovery 
in Japanese domestic demand 
emerged yesterday in the form 
of an optimistic official fore- 
cast for industrial output and 
good construction. Industry fig- 
ures. 

Industrial output, represent- 
ing just under a third of the 
economy, fell by 1.7 per cent 
from June to July, but manu- 
facturing probably perked up 
again by 1.6 per cent in 
August, the Ministry of inter- 
national Trade and Industry 
said. Overall production in the 
year to July was all but stag- 
nant, with a 0.6 per cent 
decline. 

Production has wavered all 
this year (It rose by 2.7 per 
cent in June) as the economy 
has bumped along in the early 
stage of a weak recovery. But 
Miti believes the latest result 
confirms a general trend fin- 
output to strengthen. 

That view was supported 
yesterday by a 173 per cent 
rise in orders received by 
Japan's top 50 construction 
groups in the year to July, the 
first SUCh jump in 18 wirvnthg 

An encouraging feature was 
a 24.1 per cent rise in private 
sector orders, two-thirds of the 
total, showing that the indus- 
try is becoming less dependent 
on public works, a one-off 
boost financed by previous 
governments' eramn mir stimu- 
lation packages. Public sector 
orders grew 12.1 per emit over 
the same period. 

Separately, housing starts 
grew S3 per cent in the year to 
July, the fourth monthly rise 
running, and wnfinnaHnn nf a 
recovery in unit sales, though 
not prices, in the market for 

c ondominiums 

Satellite lost after 
engine failure 

Japan's Science and Technol- 
ogy Agency (STA) lost its 
Y41_5bn (£270m) experimental 
satellite yesterday as engineers 
abandoned attempts to man- 
oeuvre it into orbit following 
engine problems, fimiko Tera- 
zono reports from Tokyo. 

The loss of the satellite, 
launched to conduct tests an 
communication, has caused 
deep embarrassment among 
officials of the STA and the 
National Space Development 
Agency (Nasda). Its launch last 
Sunday marked Japan’s first 
solo development of a two4on 
class geo-stationary satellite 
and Japan bad hoped to join 
the world’s leading space pow- 
ers with its success. 

Mr Masato Yatnano. presi- 
dent of Nasda. apologised to 
the public yesterday for the 
failure. The programme had 
cost the government Y60bn, 
with the H-2 rocket, which 
launched the satellite, worth 
Yi9bn. 

Test ban treaty 
faces delays 

A treaty banning all nuclear 
tests is unlikely to be com- 
pleted by next April when the 
Nuclear Non-Proliferation 
Treaty (NPT) comes up for 
renewal, Frances Williams 
reports from Geneva. Mr Mig- 
uel Marin-Bosch of Mexico, 
who chairs the test ban treaty 
negotiations in Geneva, said 
yesterday it would tike “a 
minor miracle” to finish the 
pact by then, though it mi g h t 
be possible to have an "almost 
agreed" text next spring. 

A number of developing 
countries have said their posi- 
tion on attending the NPT will 
depend on progress in the talks 
on a comprehensive test ban 
treaty which began last Janu- 
ary under the auspices of the 
United Nations Disarmament 
Conference. 

Australian growth 
rate falls back 

Australia's annual growth rate 
dipped back to 4.3 per cent dur- 
ing the June quarter, after 
reaching 5 per cent during the 
first three months o f the year. 
Nikki Tait reports from Syd- 
ney. However, the new figure 
was in line with market expec- 
tations. and Mr Ralph Willis, 
the federal treasurer, said the 
government saw no need to 
adjust its recent budget fore- 
casts. 


Beijing passes law to disband Hong Kong’s popularly elected assemblies 

China scraps Patten’s reform scheme 


By Simon Hofoorton 
in Hong Kong 

China's threat to disband 
popularly elected assemblies 
in Hong Kong was made law 
yesterday when the National 
People’s Congress, China's par- 
liament, empowered a yet-to- 
be-appointed group to establish 
a fresh political tatter In Hnng 
Kong after 1397. 

The official Xinhua news 
agency said the standing com- 
mittee of the NPC had issued a 
"legal regulation” to abolish 
Governor Chris Patten’s 
reform package. “The last Leg- 
islative Council, city govern- 
ment, district government and 
district board will be termi- 
nated on June 30,” Yinhna 
said. 

Since October 1992, when Mr 
Patten unveiled his plans for 
political reform, China 
repeatedly threatened to 
reverse them on regaining sov- 
ereignty on July 1, 1997. The 
decision of the NPC, which was 
expected, puts beyond question 
Beijing’s determination to do 
just that 

The Hong Kong govern- 
ment’s spokesman said that 


electoral arrangements, 
approved by Hang Kong's Leg- 
islative Council (LegCo) earlier 
this year, provided the best 
mpflna for developing “mature 
institutions" consistent both 
with what has been agreed 
with China in the past and 
with the aspirations of Hong 
Kong people themselves. 

“It is not immediately appar- 
ent how dismantling represen- 
tative institutions which have 
been openly and fairly elected 
can be conducive to smooth 
transition," he 

Xinhua said a preparatory 
committee, due to coxae into 
existence during 1996, has been 
given responsibility for mat- 
ters relating to setting up the 
first post-colonial government 
and for forming its first legisla- 
ture. The preparatory commit- 
tee will consist of mainland 

ptHdah unit fCimg repre- 

sentatives. 

The NPCs action in altering 
the preparatory committee’s 
terms of reference constitutes 
an amendmen t of the Basic 
Law for Hong Kong, passed in 
1990. Throughout months of 
talks with Britain about Mr 
Patten’s political reforms. 


Ch ina maintain ed that the 
Basic Law could not be 
amended. 

Hong Kong's first fully demo- 
cratic elections will be held 
later tins mont h when voters 
participate In elections for the 
colony's 13 district boards, or 
local councils. Hong Kong is 
decked with posters proclaim- 
ing the virtues of Liberal, Dem- 
ocrat and pro-Cammunist can- 
didates. 

Ms Marian Bladen, a consul- 
tant to the conservative Lib- 
eral Party, said yesterday that 
most participating in the elec- 
tions had accepted that there 
would be a change in 1997 
when rifrma takas over. “They 
are an amazingly pragmatic 
people,” she said. “There is 
g?cn a feeling that t her e will be 
a compromise after 1997." 

Be that as it may, it is dear 
from the NPC’s decision that 
the Chinese government has 
no intention of life any 

easier for Mr Patten and the 
British in Hong Kong . 

The optimism which sur- 
rounded the Anglo- Chinese 
p gr p wwiftnt cm military lawfa in 
June has gi ven way to caution 
as talks about the colony's new 


airport and a container port 

development drag on. 

On the airport, talks appear 
to have stalled because Beijing 
is not prepared to sign a 
detailed agreement, preferring 
instead a general statement of 
support lor the project The 
Hong Kong government c laims 
that leaders to the project will 
want to know if China 
approves of the financial agree- 
ments between the Hang Kong 
government and the two public 
corporations responsible for 
the airport and its connecting 
railway. 

If this were not enough for 
Mr Patten, who returned to 
Hong Kong from a European 
holiday on Monday, he also has 
a number of other issues to 
contend with. 

The Independent Commis- 
sion Against Corruption is con- 
ducting an investigation into 
alleged corrupt practices at a 
recent land auction. If the com- 
mission should . recommend 
prosecution, the government 
will face the unpalatable 
choice of charging some of the 
colony’s leading businessmen 
or ducking the advice and 
reducing Mr Patten's advocacy 


of the rule of law to empty 
rhetoric. 

The governor is also facing 
the prospect of a rift between 
his office and the civil service 
the 180, 000-strong body which 
keeps Hong Kang functioning 
in an efficien t manner. 

Mr Patten has been at odds 
with Mrs Anson Chan, chief 
secretary, over a law banning 


discrimination a gatnat women 
and school textbooks’ accounts 
of the X98S Tiananmen massa- 
cre in Beijing. On both occa- 
sions Mrs Chan sided with offi- 
cials who sought to adopt a 
more permissive tone. 

Observers in Hong Kong 
expect the gulf between UK 
and local officials to grow over 
the next three years as local 
Chinese officials adjust to the 
prospects of Chinese rule in 
the colony. 

There is growing antagonism 
to Caucasians within the 
bureaucracy. A senior member 
of Mr Patten’s own staff has 
been unable to move from Gov- 
ernment House to another post 
within the senior civil service, 
partly due to his links with the 
governor and partly because he 
is not Chinese. 


Banks’ financial secrets to be revealed 


Much of tbe secrecy surrounding 
banks’ financial statements In Hong 
Kong is to be abolish ed, th e Hong Kong 
Monetary Authority (HKMA) said yes- 
terday, writes Simon Holberton. 

The changes, which were welcomed 
by Hong Kong's investme nt commu- 
nity, mean that for the first time inves- 
tors will know the true profits made by 
banks in tbe colony. In the past banks 
have been able to disguise their true 
position by transfers to or from secret 
balance sheet reserves. 


The authority said banks with 
accounting periods ending on or after 
December 31 this year win be required 
to disclose aD transfers to and from 
these reserves. In addition, banks will 
be required to provide much more 
detail about the st r u c ture of their loans 
and deposits than they have been 
required to da Ibis win make it easier 
to understand the structure of bank 
halaupp sheets. 

The HKMA said the colony's banks 
wffl be able to keep secret the amount 


they have already salted away in inner 
reserves, but by disclosing the amount 
of the transfer to or from reserves, ana- 
lysts win be able to infer the true 
profit position of banks. 

The authority said it would review 
its policy on disclosure of inner 
reserves in mid-1995. 

The Hang Kong stock exchange’s list- 
ing rules win be amended to make 
compliance with tbe disclosure provi- 
sions mandatory for listed banks. 

To date, only HSBC Holdings and its 


listed subsidiary Hang Seng Bank, 
fully disclose their financial position. 

Mr Herbert Hni, a stock exchange 
exeen tive director, said the changes to 
banks’ reporting would enhance con- 
siderably the transparency of local 
bank reporting. 

Mrs Laura nh», an w m«H v i> i nm cfair 
of tile Securities and Futures Commis- 
sion, Hong Kong's corporate watchdog, 
said the level of disclosure to be 
required exceeded that originally pro- 
posed by the stock exchange and SFC. 



Stockbrokers on the Bombay exchange. India's largest share market, show their delight as die exchange’s index ; 
month it stomped after a scandal erupted concern in g illegal transactions. See World Stock Markets. 


its previous record set in April 1992. Later that 


Japanese groups link for ‘super-highway’ 


By NGchiyo Nak a moto hi Tokyo 

Forty-five Japanese companies 
have joined forces to commer- 
cialise plastic optic fibre that 
would make laying the coun- 
try's information super-high- 
way more practical and dra- 
matically reduce its cost The 
move could speed Japan’s 
entry into the multimedia age. 

The consortium, which 
includes Mitsubishi Rayon, the 
world’s largest producer of 


plastic optical fibres, NEC, 
Fujitsu, and NTT, aims to com- 
mercialise high-quality plastic 
optic fibre (POS) developed by 
Mr Yasuhiro Koike, an assis- 
tant professor erf applied sci- 
ence at Keio University. 

The optical fibre at present 
in use for mrnmmi<wiHfm< pur- 
poses is made of glass. The 
problem is that connecting dif- 
ferent strands of glass fibre is 
difficult, making the connec- 
tors used for that purpose 


highly expensive, according to 
Mitsubishi Rayon. 

Plastic optical fibre, on the 
other hand, is easily con- 
nected, reducing the cost of 
connecting fibr es from as 
much as Y30.000 ($300) for each 
connection to as little as Y10. 

It bad been thought that 
plastic fibre, because erf its lim- 
ited transmission capacity, was 
unsuitable for multimedia ser- 
vices, which call for the trans- 
mission of huge amounts of 


data. The new plastic optical 
fibre developed by Mr Koike 
has been able to overcome this 
shortcoming and Is capable of 
transmitting from one to more 
than 23 gigabits of information 
per second, or equivalent to 
tiie amount required to send 
several television channels 
down one multimedia line. 

Mitsubishi Rayon expects 
plastic optical fibre to serve 
different needs from glass opti- 
cal fibre, which is likely still to 


be used for main tr unk lines. 
Development of the improved 
plastic optical fibre bas 
attracted US companies, with 
Boeing expressing interest in 
licensing the technology. 

News of the development 
supported a strong rise in the 
share prices of companies 
involved. Mitsubishi Rayon, for 
example, enjoyed an ll per 
cent increase on the day to 
Y472 in active trading. NEC 
rose YlO to Y1320. 


North Korea signals move on succession 


North Korea’s decision to send 
a special envoy to Ch i na sig- 
nals an immin ent announce- 
ment of a new leader in the 
Stalinist state, diplomats and 
analysts to Seoul said yester- 
day, Reuter reports from 
SeouL 

North Korea said on Tuesday 
it was sending Mr Song Ho- 
gyong, vice-foreign min ist er to 
China as a special envoy. 

“Song will be m ak ing the 
first public and official visit to 
Beijing by a senior Noth Kor- 
ean official since the death of 
Kito n-sung. This appears to be 
the completion of re shuffl in g 
in North Korea's hierarchy." 
an Asian diplomat said. 

“It is an established practice 
between North Korea and 


China to notify important 
changes in their countries,” he 
said. 

North Korea's former presi- 
dent died of a heart attack on 
July 8 after he designated his 
eldest son, Mr Kim Jong-il, as 
his successor, but the younger 
Kim has yet to be named as 
tbe country's communist party 
chief or state president 

"It is quite likely that Mr 
Song will notify leaders to Bei- 
jing of Pyongyang's plan to 
bold a huge rally soon formally 
to name Kim Jong-il as the 
party leader,” said Mr Ko Tae- 
woo, chief analyst at the Insti- 
tute of North Korean Studies. 

“He will probably ask 
Beijing to take steps to 
help consolidate Kim Jong- 


fl’s legitimacy." Mr Ko said. 

China is North Korea’s last 
important ally, and its blessing 
of the communist world's first 
dynastic succession is seen as 
vital to Mr Kim Jong-il, who 
Wire his father's charisma. 

The Asian diplomat said Chi- 
na's support for Mr Kim Jong- 
il’s leadership was particularly 
important as South Korea had 
built up an important business 
partnership with Beijing, 
diminishing the North's politi- 
cal leverage. 

South Korea's trade ministry 
said two-way trade between 
Seoul and Beijing was expected 
to total ?12bn this year, up 
from $9bn in 18%. Chinese fig- 
ures put trade with South 
Korea to the first half of this 


year at $5bn. up 59 per cent on 
the same 1993 period, while 
trade frith North Korea fell 
213 per emit to $335m 

“As this trade and invest- 
ment grow North Korea's influ- 
ence in Beijing wanes, espe- 
cially after the death of Kim 
fi-sung, who knew many of 
China's veteran political and 
military leaders," a diplomat in 
Beijing said. Mr Kim Jong-il 
has rarely visited China and 
does not have the good per- 
sonal relations with Chinese 
leaders his fa ther enjoyed. 

North Korea watchers 
in Seoul said that North 
Korea’s elite must have 
been preoccupied with the task 
of restructuring its hierarchy 
around Mr Kim Jong-il since 


the elder Kim’s death. 

“Now it is beginning to 
address the importance of its 
external relations.” said Mr 
Lee Seo-hang, a director-gen- 
eral of the government-backed 
Institute of Foreign Affairs and 
National Security in SeouL 
“Song’s visit could mark tbe 
first step to seek continuity of 
its external relations," be 
added. 

The naming of Mr Kim 
Jong-il as the new communist 
party chief could coincide with 
celebrations mi September 9 or 
October 10, the anniversary of 
the setting up of the ruling 
party. 

He was last seen publicly at 
a July 20 memorial service for 
his lather. 


Philippine first-half economic growth rate doubles to 5 . 1 % 


By Job 6 Gotang in Manfla 

Tbe Philippines econ^y grew 
5.1 per cent to the fire* 

this year, more than double 
the 23 per cent growth the 
same period last yearacconi- 
ing to government data 
reiATSed yesterday. 

The performance putt tne 

economy on track lts target 


of 43 per cent overall growth 
for the whole of 1994. govern- 
ment economic managers said. 

Behind the first-half expan- 
sion. according to the state pol- 
icy-making National Economic 
and Development Authority 
(Neda), was the stable electric- 
power supply and favourable 
weather conditions during the 
period. 


In the previous couple of 
years, the economy had stag- 
nated because power supply 
shortages had caused daily 
power cuts that crippled manu- 
facturing activities. Agricul- 
ture, cq the other hapo, was 
badly hit by typhoons and 
drought. 

Gross domestic product in 
the first half rose 42 per cent. 


bat the ever-increasing flow of 
remittances from Filipinos 
employed abroad continued to 
bolster the overall gross 
national product, the Neda 
data showed. 

Power-related activity and 
construction were the growth 
leaders during the period, ris- 
ing 143 per cant and 10 per 
cent respectively. 


The government, to an effort 
to bring greater stability to 
power supply, has been com- 
missioning several private 
groups to construct power sta- 
tions. 

The manufacturing sector, 
on the other hand, advanced 5 
per cent, a turnaround from 
tbe decline of 3-1 per cent to 
the same period last year. 


when the power cuts were at 
their worst 

The trade sector was also 
vibrant Exports expanded 18.2 
pm- cent hut imports rose 223 
per cent Neda officials said the 
bulk of the imports were capi- 
tal goods (industrial equipment 
and machinery), which could 
lead to farther industrial 
growth to tbe coming months. 



3. -.to % 

lllftife 

5 


Ifc jiPHS 

iSs.qisip 

m sin 

••Rill 


4SSfc 




*K?K» . *"¥k '»*»» *•«**. .** 


sMKmasM^- 

s&tiBtm&mKBUtit 

'mzzmxmm 


wt&mmmm- 

H m s am e m 


mBsamsmm 

' i w i mn wi mn i i . 


nnn wlrtumrint tw ittn 
« * **» <■ — ■W -Wfe- 

gaBHiBwBBH. 


. ;.I. ■■■«• 





: 


. v; . 






■'*■^1 V: 




£> • v 


***..:; . ' 


Non-stop 
twice a day-U. A. 



United 

Airlines 

Uniting London and Los Angeles non-stop twice 
a day from Heathrow. Come fly the airline that’s 
uniting the world. Come fly the friendly skies. 
Fbr reservations, see your travel agent or call 
United on 081 990 9000 (0800 888 555 outside London). 




6 


FINANCIAL TIMES . THURSDAY SEPTEMBER 1 1994 


NEWS: WORLD TRADE 


Plan for Franco-German link 

UK may join 
pipe venture 


By Michael Undetnann in Bom 

British Steel said yesterday it 
was in talks about a three-way 
joint venture which would 
bring together the company's 
large-diameter welded pipe 
business with Usinor-Sacilor, 
the French steel group, and 
Mannesman!;, the German 
engineering group. 

The possible joint venture 
would be the first time that 
three European steelmakers 
have pooled such resources. 

“It is a highly competitive 
and variable world market," a 
spokesman said. “There is 
over-capacity so It’s only natu- 
ral tb-'it 1 companies should be 
talking to each other. 1 * 

The talks, which a British 
Steel spokesman said were at a 
‘‘preliminary’* stage, are 
designed to create a three-way 
venture out of Europipe, a 
three-year-old joint venture 
between MannesmannrGhren- 
Werke, the German partner, 
and Oiliinger Hftttenwerke, a 
subsidiary of Usinor-Sacilor. 
The talks are not expected to 
reach any conclusion until 
early next year, British Steel 
said. 

Mr Brian Moffat, British 


Steel chairman, has repeatedly 
urged European steelmakers to 
discuss mergers and alliances 
which would help lift 
depressed steel prices and cut 
over-capacity. “Cross-border 
mergers and alliances are inev- 
itable an d desirable,” he said 
in a recent speech. 

However, a spokesman for 
British Steel admitted that the 
company had bad no major 
successes with these efforts 
because of what he described 
as “in-built resistance" awning 
European steel producers. 

So far British Steel has two 
European joint ventures, 
A vesta Sheffield and European 
Electrical Steels, both with 
Swedish Steel rampawip* 

Large-diameter pipes repre- 
sent about 25 per cent of Brit- 
ish Steel’s total pipe and tube 
capacity. 

The company produces 
around 200,000 toones of large- 
diameter pipes a year at its 
works in Stockton and Hartle- 
pool in the UK, where it 
recently modernised the 42- 
inch pipe mifl. 

A spokesman for Mannas - 
mann declined to give any 
details about Europipe’s turn- 
over. 


Indian 
imports 
of oil 
set to fall 

By Shiraz Sdhva in New PeUil 

India's oil imports are 
expected to fall by 6m tonnes 
in the current financial year 
(April 1994-March 1995), fol- 
lowing an increase in domestic 
crude production, saving the 
country nearly Rs23bu (1733m) 
in foreign exchange at current 
international prices. 

Crude oil imports are expec- 
ted to drop to 24m tonnes this 
year, from 30m tonnes is 
1993-94, according to figures 
released yesterday by Indian 
Oil Corporation, one of India’s 
largest public sector units, and 
the canalising agency for the 
import of crude oil and 
selected petroleum products. 

However, petroleum product 
imports were expected to rise 
to 13m-15m tonnes, from 
12£4ra last year. This increase 
is in large measure to ftp 
increase in demand for diesel 
(for tractors) when the country 
has had a good monsoon. Mr 
J L riiah-man of Indi- 

an oil, yesterday announced 
die corporation’s net profit of 
&s7.72bn during 1993-94, 
through its refining ***** mar- 
keting operations, up 14 per 
cent from last year. 


Asia-Pacific pledge 
urged on trade curbs 


By Guy da Jonquferas 
in London and NQdd Taft ■ 
in Sydney 

Leaders of the 17 countries of 
the Asia-Pacific Economic 
Cooperation forum should 
commit themselves this year 

to Eliminating by 2020 all 
barriers to trade and 
investment m the region, an 
international advisory panel 
has recommended. 

The panel’s report says 
liberalisation should not be 
confined to Apec countries, but 
should seek to reinforce the 
multilateral trade system by 
simultaneously artanding the 
benefits of freer trade to 
non-members. The report Is 
the most detailed effort yet 
to draft a blueprint for 
the development of the 
five-yearold organisation. 

It was drafted by a 
16-member eminent persons’ 
group at the request of last 
year's Apec summit in Seattle. 

The authors call on Apec 
leadens to agree at their next 
meeting, in Jakarta in 
November, to launch the 
liberalisation programme in 
the year 2000 and to pledge 
themselves to completing it 
over the next 20 years. 

Though the report’s 
recommendations are unan- 
imously backed by its authors, 


same have admitted that they 
do not expect all their 
proposals to win political 
approval quickly. 

Mr Neville Wren, Australia's 
representative on the eminent 
persons’ group, said yesterday 
that the liberalisation 
timetable yesterday was some- 
thing of a vision, and 
over-hasty efforts to turn 
Apec into a more formal 
organisation could damage 
confidence in it 

Apec members have already 
displayed sharp differences 
about the pace and direction of 
future development While the 
report’s findings seem likely to 
be broadly favoured by 

rnring t- Hnligod countries SUCh 

as the US and Australia, 
reactions in Asia are ex pected 
to be more mixed. 

The report says more 
advanced Apec members 
should dismantle all their 
trade and investment barriers 
by 2010, and developing 
countries by 2020. 

As wall as tacMing bonier 
obstacles, liberalisation should 
extend to such matters as 
government procurement and 
tartiniwii standard s. 

The authors say the 
programme should atm for 
“open regionalism** by building 
On — and in «a«ag going 
bey ond — the principles of the 


General Agreement os Tariffs 
and Trade. - 

They emphasise that Apec 
should not become a customs 
union and should avoid the 
“over-institutionalisation and 
over-hureaucratisation’’ 
typified by the European 
Union. 

“Without any re s e r vat i on 
whatsoever, we strongly 
oppose the creation of a 
trading bloc that would be 
inward-looking and would 
divert from the pursuit of 
global free trade,” the report 


Individual Apec countries 
should instead he encouraged 
to liberalise trade unilaterally 
as fast as possible, while the 
organisation should he ready 
to negotiate concessions with 
non-members an a reciprocal 
basis. However, the report 
says mi tom Apec leaders 

move rapidly to launch a 
liberalisation drive, the 
group's achievement could be 
jeopardised by fragmentation 

and d iawhwtnaHnn r fiiyyd by a 

proliferation of sub-regional 
economic groupings. 

To prevent this happening, 
the authors <wii on groupings 
such, as the North American 
Free Trade Area to undertake 
to extend to the whole of Apec 
the trade pr efe rences enjoyed 
by their members. 


When it 
comes to PCs 

IBM, 
Compaq 
and Acer 
stand out. 



I VST* 


We’re not as big as IBM" or Comf 
but we’re bigger than you think. 



In fact, our sales are fast approaching $2.8 billion. And if that surprises you, you’re not alone. 
After ail. Acer 1 has been quietly manufacturing PCs for other computer companies for over 12 years. 
Throughout our 15 worldwide manufacturing and assembly plants. That’s how Acer has become the 
PC market share leader in eight countries across the globe (not to mention one of 
the top three leaders in many other countries). It should therefore be no surprise 
that Acer was one of die first computer companies to deliver systems based on 
IntePs 90MHz Pentium" processor in all the major markets. We’re confident the 
next time you think of leading computer companies, you’ll think of Acer. 


AceR 


United Kingdom 

Telephone: 44-753-523024 - Facsimile: 44-753-693739 



TrteptaM £>-3-2305032 
fjcsmidc. 37-3-28 1 3325 


'fte Ndtatuds 
Tefcpimne 31 2MS15TO 
fxantk 3I-2M9HQ6 


Samar 

Tdspdara. 49-4102-4300 
FasnUe: 4Mf02-488-10l 


Rolls-Royce 
seeks bigger 
Airbus share 


By Paid Betts, Aerospace 
Correspondent, In ToUkxno 

Rolls-Royce, the British 
aero-engine manufacturer, is 
seeking to win a greater share 
of the European Airbus market 
after two decades in which it 
f a vo u red supplying engines for 
rival US aircraft manufactur- 
ers including Boeing and Lock- 
heed. 

The move reflects the UK 
company’s reassessment of the 
growing penetration by Airbus 
of the market for large aircraft. 
Airbus has now secured about 
30 per cent of the wadd market 
and set itself a target to 
increase this share to 50 per 
cent over the next decade, 
according to Mr Jean Pierson, 
Hib Airbus chief exec utiv e 

Rolls-Royce, which is expec- 
ted to report higher first-half 
profits today, at present only 


Jtaitta 

Tefeptanc 43-T-S141B810 
Faa*me43-13W1581HJ 


Finn 

tefephooe 33-1-41 18-2329 
Facsndt: 33-1-411&-2900 


WBphanc 39-2-2692-2565 
FKWHJe 392-2®M071 


Promt 

iBlepInie: 45-45 -KIOTO 
iarafciNc: 45-45-82IQ72 


fafcptanK 35-K. 

Farantte 36- 1 2032056 




The move by the 
UK aero-engine 
maker reflects 
an increasing 
penetration of the 
large aircraft 
market by Airbus, 
which seeks 50 per 
cent of sales over 
the next decade 

provides the Trent 700 engine 
for the Airbus A330 twinen- 
glne wide-body airliner, 
although it participates with 
other cnmpanfeg in the V2500 
engine powering the smaller 
A320 and A321 twin-engine nar- 
row-body airliners. 

The UK company’s hopes 
hinge on the development of a 
new 40,0000) thrust engine to 

equip a new laiger-range ver- 
sion of the A340 four-engine 
wide-body aircraft. This is cur- 
rently powered only byCFM 
engines jointly manufactured 
by General Electric of the US 
and Snecma of Fiance. 

This new engine could also 
have applications for advanced 
versions of the; older A310 
-wide-body airliner currently 
under study at Airbus. 

Airbus confirmed yesterday 
it was bolding intense studies 
with all three leading aero- 
engine manufacturers (Rolls- 
Royce, Pratt & Whitney and 
GE) an the development of a 
new 40,0001b thrust engine. - 

Mr Pierson said the consor- 
tium expected to take a techni- 
cal decision on a Umgerrange 
version of the A340 next year. 
The ultimate aim was to 
develop an ultra-long-range air- 
craft capable of Dying a one- 
stop round-the-world trip. The 


new angina would have a mar- 
ket estimated at about 5,000 
units for both the A34Q and the 
new A310 advanced aircraft. 

Rolls-Royce, whose first 
Trent 700 engine made its 
debut on an A330 airliner for 
Cathay Pacific yesterday, is 
also seeking opportunities to 
equip other future Airbus prod- 
ucts with its expanded engine 
family as well as with possible 
new power plants. 

Rolls-Royce’s intention was 
to offer engines for Airbus pro- 
grammes including possible 
replacements of the older A300 
and A310 wide-body airliners, 
fixture derivatives of the A330 
a nd A 340 and the proposed 
A3XZ super-jumbo, said Mr 
John Rose, Rolls-Royce's dep- 
uty managing director. 

Airbus, which is also collabo- 
rating with Boeing on a possi- 
ble development of a super- 
jumbo aircraft, plans to have a 
scale model of Its proposed 
A3XX on display at the Fam 
borough Air Show next week. 
It says the new four-engine 
superjumbo - capable of car- 
rying up to 840 passengers in 
one class with a possibility of 
going up to 1,000 in a stretched 
version of the aircraft - would 
not require the development of 
a new engine but could be 
equipped by power plants like 
the Trent 700 and its US rivals. 

But demand for a super- 
jumbo is not expected to 
emerge untn the next dpoad> 
Mr Peter Sutch, rfiawraan of 

Cathay Pacific, said the Hong 
KWng airitwa did not envisage a 
need for a super-jumbo until 
around 2003. It unveiled yester- 
day a new corporate l i very to 
reflect what Mr Sutch called "a 
rfiawg ad and revitalised airline 
moving into anew era”. 

Both British Airways and 
Singapore Airlines have 
already expressed interest in 
acquiring a super-jumbo. 

Mr Pierson yesterday wel- 
comed the roll-out of the first 
A330 equipped with a 
Rolls-Royce power plant, say- 
ing it was “high time we saw a 
made-in-Europe an gina on an 
Airbus aircraft". With a 
RoBs-Rbyoe engine and British 
Aerospace's 20 per cent. &are 
in Airbus, the UK content of 
the A330s ordered by Cathay 
Pacific topped 50 per cent 

Mr Rose said the A330 was 
“one more building block” in 
the UK company's relationship 
with Airbus. “We must now 
build up this relationship,'* he 
added. Bat RoDs-Rayoe is also 
interested in developing its 
share on new US Boeing air- 
craft, including the 777 twin 
engine wide-body airliner and 
Boeing studies to develop a 
larger version of its 747 jumbo 
or a new very large aircraft 


Victory for Taipei 
as air links with 
Japan are boosted 


By Laura Tyson In Taipei 

Taiwan and Japan have agreed 
to expand air links between 
the two countries for the first 
time since a dvfl aviation pact 
was agreed in 1975. 

The accord allows each side 
to appoint two carriers to pro- 
vide air services between 
Taiwan and Japan, Taiwan’s 
transport ministry said yester- 
day. 

It adds a new route, Taipei to 
Fukuoka and increases flights 
on the misting routes be tw ee n 
Taipei and Nagoya and 
between Tokyo and Okinawa. 

The outcome of the talks 
marks an important victory for 
Taipei, which for two years has 
been thwarted by Bejjing in its 
efforts to expand services to 
Japan to meet increased 
demand. 

It also represents a coup for 
EVA Airways, Taiwan’s first 
privately owned international 
carrier. 

Taiwan’s flag carrier. Chi™ 
Airlines, and Japan Asia Air- 


ways currently provide regular 
flights between Taiwan and 
Japan. - 

EVA, founded in 1991 by the 
Evergreen group, the shipping 
concern, will share the expan- 
ded routes with Japan’s Air 
Nippon, a subsidiary of All 
Nippon Airways. 

The accord -was not . an 
unqualified success, however, 
as the two sides were unable to 
establish direct air links 
between Taipei and Osaka's 
new - Kansai Airport, an 
important route for business 
travel. 

Negotiations over this 
route were stymied by objec- 
tions from Beijing. Japan 
switched diplomatic recogni- 
tion from Taipei to Beijing in 

1972. 

Trade and investment ties 
between Taiwan and Japan 
have grown rapidly in recent 
years. Two-way trade climbed 
to US$32.1bn last year from 
&06bn in 1983, with Taiwan 
posting a record bilateral trade 
deficit of $14J2bn in 1993. 


Singapore airport in 
Vietnamese city deal 


By IGeran Cooke bi Singapore 

Singapore Airport Terminal 
Services (Sats) is teaming up 
with Vietnamese groups in a 
US$l5m venture to provide 
cargo handling services at Bo 
Chi Minh City airport, in the 
south of Vietnam. 

Sats, a subsidiary of 
Singapore Airlines (SIA), wfll 
hold a 30 per cent stake in the 
venture, with the rest con- 
trolled by Vietnam Airlines 
and a local Vietnamese com- 
pany. 


Sats says that cargo traffic 
between Singapore and Viet- 
nam rose by more than 60 
per cent in the past year, 
while passenger traffic 
between the two countries 
increased by more than 40 pa - 
cent in the first six. months of 
1994. 

Sats is already participating 
in the development of an air- 
freight terminal in the Chinese 
capital, Beijing, and is involved 
also in setting up a flight cater- 
ing operation in Karachi. 
Pakistan. 




t 


"IS 

‘ hl 'sgt, 

ls s ^r ( 


FINANCIAL TIMES THURSDAY SEPTEMBER 1 1994 


NEWS: THE AMERICAS 


Derivatives loss fuels I Castr0 Cubans risk all for better life 


call for legislation 


^ Pascal Fletcher reports on economic pressure to become a refugee 


By George Graham 
in Washington 

Heavy losses on financial 
derivatives trading by a Mary- 
land county administration are 
fuelling calls in the US Cor t- 
gress for legislation to tighten 
oversight of the derivatives 
market 

Charles County. Maryland 
said its deputy treasurer had 
been dismissed after the 
county discovered a loss of an 
estimated $1.3m on invest- 
ments in derivatives, including 
mortgage-backed securities. 
The investments also tied up 
about $27m, a quarter of the 
county's annual budget. In 
securities, which Mr Roger 
Fink, county attorney, says the 
local government was not 
authorised to buy. 

The Maryland county has 
hied suit against the brokers 
involved in the trades to seek 
the return of the money 
invested. 

Mr Henry Gonzalez, chair- 
man of the US House of Repre- 
sentatives banking committee, 
said the losses confirmed the 
need for derivatives legislation, 
for which he has been arguing. 


“How many more firms, pen- 
sion funds and counties are we 
going to read about, losing 
money due to derivatives, 
before the Congress takes 
action?" he asked. 

Mr Gonzalez has introduced 
a hill, with Congressman Jim 
Leach, senior Republican on 
the committee, which 

would stiffen bank supervisors' 
oversight of the derivatives 
market, and wants detailed 
drafting to get under way soon 
after Congress returns from 
recess next week. 

The House energy and com- 
merce committee has also been 
working on legislation which 
would provide tighter supervi- 
sion of some largely unregu- 
lated derivatives subsidiaries 
of investment banks and insur- 
ance companies. 

Drafting legislation is com- 
plicated by rivalry between the 
two committees, as well as by 
the general hostility of bank 
supervisors. Washington offi- 
cials do not expect new deriva- 
tives legislation this year. 

Even so, the addition of local 
taxayers to the list of losers in 
the fast-moving markets for 
derivatives - complex securi- 


ties whose return is derived 
from another security or index 
- is expected to increase con- 
cern in Congress. 

In earlier congressional hear- 
ings on the need for tougher 
regulation of derivatives, many 
members said they were 
unmoved by news that large 
and sophisticated multina- 
tional companies, which 
should be able to look after 
themselves, had lost money in 
derivatives trading. Local gov- 
ernment treasurers and local 
taxpayers, however, arouse 
more sympathy in Congress. 

Charles County faced a cash 
crisis as a consequence of the 
trades. The county saw itself 
as having been without author- 
ity, under state law, to have 
bought securities with a matu- 
rity longer than 270 days. 
Because it believed it never 
legally owned them, it could 
not sell them, Mr Fink said 
yesterday. 

However, to avoid freezing 
the securities during years ot 
litigation, the county and the 
brokers being sued subse- 
quently agreed to seQ the port- 
folio. 

Derivatives column, page 21 


US middle class divided 
by skills, says Reich 


By James Harding 
in Washington 

The middle clam in the US is 
being divided by its levels of 
education and skills, according 
to Mr Robert Reich. US labour 
secretary. 

In a p re- Labor Day speech on 
the state of the workforce yes- 
terday. Mr Reich said: “The 
deepest divisions [in US soci- 
ety] aren’t based on race or an 
national origin or on geogra- 
phy. They’re based on the abil- 
ity of individuals to make their 
way in an increasingly turbu- 
lent society." 

Mr Reich said that whereas 
in 1979 a “middle class" male 
with a college degree earned 49 
per cent more than one with 
only a high school diploma, by 
1992 the college graduate was 


earning 83 per cent more. 

Unemployment patterns, too. 
reflect the divergence between 
the giriitefl and the unskilled. 
The unemployment rate for 
those who completed a college 
education has held steady over 
the last 15 years at around 3 
per cent The level for those 
who did not finish high school, 
however, has jumped from 7 
per emit in the 1970a to 12 per 
cent last year. 

Although Mr Reich said 
there was much to celebrate in 
the news that between last 
Labor Day and the end of July 
the economy had added 15m 
new jobs, he said the middle 
class had splintered into three 
groups: an “underclass” iso- 
lated from the core economy 
and walled off from hope; an 
“overclass” who profitably 


rode the changes in the econ- 
omy; and the bulk of the 
population, an “anxious 
class. . . pulled and stretched 
by the need to work two or 
more jobs to keep a family sol- 
vent, by uneasiness about 
healthcare, by the spectre that 
today's job will disappear 
tomorrow. . .” 

Mr Reich was one of the 
main intellectual forces behind 
the Clinton administration's 
pledge to reward the work of 
“the forgotten middle class”. 
The answer to the growing 
divisions, he says, is education. 
Expanding skills, particularly 
in technology-related fields, 
in-house training programmes 
and keeping potential high- 
school drop-outs in education 
longer all help to build a new 
middl e class, he believes. 


war, says 
report 

President Fidel Castro may opt 
for war with the US if he is 
backed into a comer, said a 
study prepared for the Penta- 
gon and released yesterday, 
Reuter reports titan Washing- 
ton. 

The study by Rand, a Calif- 
ornia research organisation, 
was completed last spring and 
anticipated the anti -govern- 
ment demonstrations anil refu- 
gee esodns of recent weeks. 

It said Mr Castro was 
unlikely to accept a forced res- 
ignation because It would tar- 
nish his place in history. 

“Castro is not likely to give 
up power voluntarily; and if 
cornered he might fight to the 
death,” said the report, paid 
for by the office of Mr William 
Perry, defence secretary. 

“With his regime at the 
point of unravelling, Castro 
might try to engineer a final 
i military reckoning with the 
US in a (Mtterdammenmg-tyve 
scenario that could leave Cuba 

destroyed but would confirm 
his legacy as Latin America’s 
staunchest anti-imperialist,” it 
said. 

Such an outcome, the study 
insisted, “conforms not only to 
the value that Castro places on 
struggle, intransigence, and 
defiance, but also the way he 
and past Cuban leaders have 
exalted the acts of dpath and 
martyrdom on behalf of the 
nation.” The Cuban leader 
might seek a dash over die 
Florida Straffs, which separate 
Florida and Culm by 90 miles, 
or over Guantanamo Bay, the 
US naval base on Cuba’s 
southeast shore. 

Bis grip on power remained 
firm, with the Communist 
party apparatus, military owd 
security organs “largely in the 
bands of hardline officers*, 
the report said. Clinton admin- 
istration officials have said 
they are not committed to 
ousting Mr Castro. Instead, 
they have tightened a 31-year- 
old US trade embargo against 
Cuba to force him towards 
meaningful economic and 
political reforms. 

The Rand report concluded 
that such reforms were highly 
unlikely while Mr Castro' 
remained in power. 


A s talks begin in New 
York today on the 
Cuban refugee crisis 
even government officials in 
Havana admit that life has 
become plagued with hard- 
ships for the island’s llm 
people. 

The chronic shortages of 
food and other baric goods are 
the result of the worst eco- 
nomic crisis in the 35-y ea r his- 
tory of the Cuban revolution. It 
followed the collapse after 1990 
of preferential trade and aid 
links with the now defunct 
Soviet bloc. 

While hundreds of Cubans 
risk their lives trying to reach 
the US in flimsy, home-made 
rafts, those who stay behind 
view their departure with 
mixed emotio ns 
“Tm a revolutionary and all 
that I have I owe to the revolu- 
tion,*' said Mr Roberto Pfrrez 
from Havana. He was explain- 
ing why he had not joined five 
members of his family who, 
with nine others, clambered 
aboard a rickety half-raft, half- 
boat that set off this week from 
a beach at Cojimar, east of 
Havana. Their craft joined a 
dozen others on Monday after- 
noon aiming for Florida. 

Mr P&rez added: “Besides, 
rm 54 and black. What am I 
going to do over there?" Ges- 
turing towards his departing 
relatives, a brother, a 


sister-in-law and three teenage 
grandchildren, he went on: “I 
don’t criticise them. They are 
young, they aspire to other 
things. If 1 were young, I would 
go too.” 

Further along the beach 
another elderly man was stay- 
ing behind. “I would like 
things to improve here so that 
people wouldn’t have to go," he 
said. Fear of making the risky, 
90-mile sea crossing, reluctance 
to leave b ehin d family and 
friends and hopes that things 
might eventually improve are 
all factors keeping many 
Cubans from joining the exo- 
dus from the communist-ruled 
Caribbean state. 

There is an air of desolation 
about the streets of Havana. 
The decaying buildings and 
potholed streets of and the lack 
of shops, restaurants and bus- 
inesses operating normally are 
symptoms of an economic 
squeeze made worse by a long- 
standing US trade embargo. 

The desire for a “better life” 
is the motive most cited by the 
departing rafters, who appear 
undeterred by the change in 
policy announced by US Presi- 
dent Bill Clinton in mid- 
August. The change means 
that Cubans who try to leave 
without visas will now not be 
granted automatic entry to the 
US as they had been for years. 
They face indefinite detention 


at the US naval base at Guan- 
tanamo Bay in eastern Cuba or 
at other US detention centres. 

The dispute over immigra- 
tion is part of the wider OS- 
Cuban conflict and will be at 
the centre of the talks in New 
York between high-ranking 
Cuban and US officials. Senior 
US nffiHalc have made clear 
they are wilting to discuss 
ways of controlling the exodus 
of Cuban refugees, but not 
much else. 

C uban President Fidel 
Castro, who criticised 
Mr Clinton’s recent pol- 
icy change towards the Cuban 
refugees as “absurd", has said 
the talks should include lifting 
the US embargo and ending 
the barrage of anti-communist 
radio and television broadcasts 
directed from the US. 

He also wants an immediate 
end to new sanctions 
announced this month by Mr 
Clinton, which included a vir- 
tual halt to US dollar remit- 
tances from Cuban Americans 
to relatives on the island. 

Heading the Cuban delega- 
tion will be Mr Ricardo Alar- 
con, a prominent figure in the 
communist party hierarchy 
and head of the island's 
National Assembly. He is a for- 
mer foreign minister and 
ambassador to tbe United 
Nations. 


Mr Alarcon is an experienced 
diplomat who has faced the 
Americans before in immigra- 
tion negotiations. He helped to 
negotiate a previous immigra- 
tion accord in 1984, four years 
after tbe so-called Mariel “boat- 
lift” by which about 125,000 
Cubans left the island. Mr 
Alarcdn is a staunch defender 
of the island's one-party politi- 
cal system and can be expected 
to resist any US demands for 
reforms in that area. 

The Cubans hope the pres- 
sure generated by tbe humani- 
tarian problem or the refugees 
will persuade Mr Clinton to 
change tbe policy of hostility 
towards Mr Castro’s rule prac- 
tised by successive US admin- 
istrations since shortly after 
the 1959 Cuban revolution. 
This may be a vain hope, as US 
officials such as Ms Janet 
Reno, the attorney-general, 
have publicly blamed the refu- 
gee exodus on the Cuban lead- 
ership. 

Some relief to the refugee 
problem may come from third 
nations such as Canada and 
Mexico, which have said they 
are willing to take some Cuban 
refugees with families already 
living in their countries. 

Meanwhile, as the exodus of 
rafters continues, Cubans stay- 
ing behind will wait to see if 
this week’s talks can break the 
30-year deadlock of hostility. 



GREEK EXPORTS S.A. 


lu? III? 
lk % wi i! ' 
^ !hh?v ; 


. f I ;■ 

, 1 
t-ii . 

• ; 

t * ■ . 


ANNOUNCEMENT OF A REPEAT PUBUC AUCTION FOR THE SALE OF THE ASSETS OF THE 
COMPANIES OF THE P1RAIK1-PATRAIK! GROUP NOW UNDER SPECIAL LIQUIDATION 

GREEK EXPORTS SA. based In Aflians (77 P m wpte U mou Streep and tagaffy represented, fa fa capacity as Uqufaamr, foflowrfng d adston s Ng 1P3EV1892 of the Pairas 

Court of Appeal, and 7815/M at Ms Atoms Court of Appoal, and acconfing to article 46a of Law 1662/1990 as supplemented by article 14 at Law 200X1991 and 

comptomefUad by article 53 of Law 2224/94. and Mowing Instructions dated n/7/94 frem too Industrial Raconsbudlon Organisation (being the eesartml crwJJnr of the 

companies at tha PtRAIW-PATRAlKl Group and authorised to make aB relevant decisions In accordance with article 22 of Law 219W1904) 

ANNOUNCES 

repeat International public auctions with seated, binding offara far too sale of too total assets qt too fotaMng soctotes anortyme now under liquidation: 

1. PIHABO-PATRA1W PATRAS SPCNMNG AND WEAVING MILLS SA estafafa b ed In Patras. 

Z. PIRAIW-PATRAIKI CHALMOA WEAVING Mil SA asteMstad In CtiaMda referred 10 hereinafter as "too Company* 

ACTIVITY AND BRIEF DESCRIPTION OF THE COMPANIES 

1. P1RAHQ-PATRA1KJ PATRAS SPINNING AND WEAVING MILLS SA ostabtahed In Patras, is a vortical spinning and weaving unit unusual In Greece tor its size, 
Ngh technological level and Knowhow and production ot specialised materials. Tbe spinning mffl. weaving mK. dying I nstefl a tion. tnfahtog IrataBation arc. (totalling 
713,000 cu mj are toa mcrin production units of the complex, cowing an area of about 208 stremmss. Included In toe assets far sale ae the PtRAIW-PATRAlKl 
trade marts and Brother 37 trade marks as described In dstafl In toe offering memorandum. 

2 PiRAIKt-PATRAlW CH/UJODA WEAVING MILL SA, estabKshod In CtaMOa. Is engaged to toe praduidton efr unbleached coaon materials- "Tha main products are 
toa toflowing: Gabardine, bedsheats. pique cowre. dimity, okterdown doth, velvet caboL caHco. The weaving mB is considered to be the largest In Greece in terms 
ot looms, wttn 182 SiArer 153 twd 78 Sutzer 110 looms instated. The company plant. totaSng 104,248 cam. Is In the Vtantou area of Chafcida (Mtotn toe town 
plan) on a plot of land 42£B2 sq. metres In area 

TERMS OF THE AUCTION 

1 Interested parties are Invited to receive from toe Liquidator toe Offering Memorandum and draft Latter Guarantee In order to sitomit a seated, binding otter to toe 
pubbe notaries appointed to toe auction, Mr Panayotte V. Kofckafls; at 31 Patreoa & Mezonos Streets, Patras, tsL +30-61-277.785 tor the firto-meftfoned company, 
end Mr loenrrls E. Gorayannls, at 22 EL Venfceto u Street, chaMda. tel: +30-221-23343 to the test-menttoned company up to 1900 hours on Wednesday. 21st 
September 1994. 

Offers must be submffted In person or by a legally authorised representative. Offers submitted beyond the stated tone fim» vrfU not be accepted or considered. 

2 The bids wS be unseated before toe above-mentioned notaries on Thursday. 22nd September 1994 at 1000 hares, veto toe Uqut dato to attendance. Parties 
having sitomffled bids wtoWi toe prescribed torn Bn* are also authorised to attend. 

3 Tho seated, binding offers must dearly stale whether they rater to toe total assets or to separate operational elements of toe assets of toe company under 
Ifauklaikm. the offered price aid method of payment (cash or crecflb the number of Insttemente, toe time period over whk* toe payments are o be n»de at a toed 
intorstrate In toe avert tote there is no mention of a) the method at payment, b) whteher Wares is to be charged and c) toe Merest rate. It wfl be assumed 
leepecttvetyihte a) toe amount Is to be paM In cash, b) ttw toteak nena yril not be subject to interest, c) the Interest on the toteatarents ta to be calculated acconflng 
to tho offered Interest rate on annual State bonds et toe tune of submission. 

4 Often shall be null end void unteea accompanied by a fatter of guarantee from a bonk togady operating In Greece. The letter wfB be vaBd untfl the 

at the contract end will he to the amount of 150JWL000 drachmas for PIRAIKLPATRABCI PATRAS SPINNING & WEAVING MILL SA and 
VteWOOOQO drachmas tar PWABWATRAIW CHALMDA WEAVING WU.SA 

5 Tho Company’s assets and aU fixed and circulating elements that comprise them. Immovables, movables, ctofme, rights etc are to ba sold and trteraferred as Is and 
ii.temi3.and more specffietely. to their aauaf and legal condMon and location on toe date an which toe sale contract is signed, regardless of whether toe Company 
a operating or noL Cams of eech conqwny agetnot toe other connected companies <* toe Group are excepted and are not transterabte. 

, Ttw Lfouldasor too Company and the credtas represented 51% of tha total ctabns against toe Company (law 1 992/90. arttote 46a. para, las in fame), stud bear 
nns^totor anvtetjalofaaud dteetesorlor any deMency In toe partculere of the effects tor sale ortltfUs. nor tor their incomplete re faulty description in the 
Ottoing Memorandum and « any correspondence. In toe event at toconstetenctes. entries in the Company's books, as tooy stand on toe date of signature of toe 
sale contract shaH prevail. 

- tenors, herelmrttw raftered to as Buyers, shal ba obiged, on their own reepowWRy and due care, and by her own means and te their own ejqwnse. 

of too stee and torn the* own judgement and declare In their bids tote they are toy aware of toe actual and legal condUJon of toe assets tor 
-.taThu Buvwsere hereby reminded that in eccontarce with the prevMons of Lew 1692/90, arifcte 46a, para. 4 as In force, having agreed In wrttng to matoWn 
SSriUSTtoey am «i«ted » iw* access w any intorratfOTihivrn^ 

8 The essential cfflwta tor evatoadng the oflera by too Liquidator, among others, shad be too amount of the entered price, the assurance at as many as possible )ob 

KMrtionBandthebusIneespiarBofproBpeeilwtxiyers. 

a nracrmiate lemte coon wtechtomrblncBnyiere may depend or be vague wito regard to toe helgta of toe amount offered or as method ctf payment or te 

9 matter sfocOng sate. The Liquidator and the Credhcr have tha right te thalr Incortrovartite tSsereboo, to reject oBara which contain terms 
^2 dauws. regartBess ol whether they are higher than other oftera. 

to In iheewwt tool paynwnt to to ba made on credft the present vteue of the areebwB be taken Into accoute. 

.. r the buyarwfflprovtcto toe Uqiddaiw, on toe dteatesionteure cri toe sate artnxX a ietlBr of ^arartBe from a bank operating in 

11 Q,^^^^^n^a(W.oni»«iwunloncw#and the Inwreettoewsv stole the bafenee of toe amount on crottsflbe secured by a nuttfcaSan clause and e 

certain ocomfrttment by toe Iteyws *at the jtoits w# be Stept to operakxUbrte least ffwrayews. 

-wawww the business plans of the buyers (job poeSons, height of investments, length of operation, etc.) 36 weS as tor the otoor terms to be agreed 
11 On off points concwwog - and otow w™ »Wch w« guarantee ebUence by their undertakings. 


upon, toa buyers must accept 


bidder is one whoso ofter has been evaluated by toe UqtMator and judged by the Credtor as being the most s^startoy. 

14. ^ to whom toe assets for sale hare been adfufcated fate ta hte oHgadon to appear and sign the rteatfve contract within twenty (20) days of 

15. in too avail mat me p«r rif1nmr ^ by the obggadom contained fci the present announcement then toe amount at the guarantee stated above a 

being burned w ioo pf ^ Ktods.«me spew and any real or paper loss suffered byMmwfl and by the cretgcrs wdh no aMotetan on his part 

pf consider that toe amount has been forfeited aa a penalty ctause. and cc&w It from the guarantor bank. 

toprowdo dm ottos of other bWdam.acept toe highest bidder, wffl be retoned to town Wmedtealy after toe tejudfc a nonof toa auction whch 

Lottwaolguaranio®o<! e< toJl^i^v^ s! ^ cenBH;l 

occurs win roaoorWOBy of aMta**" 1 towards participants h the auction, both wlto regard to toe drafitog of toa evaluation report on toe bdS or to he* 

16. Tho Liquidator om« __ he is not responsfate and has no oUgsffen to parttofeants si toe auction in the event of a canceffafon or nuffifleatton of the 

proposal of too w 9 no ” wtJill o: rny . 

auction far any cause „ihm Hlnd brda do not acqufre any rlpM and can malm no demand or tiakn on gw Orenqlh ot ttiis araomcsrnqnt or of gwfr 

.7. 

partWp8l,0n ' „r pmAiKLPATRAtKl CHAUQDA WEAVING MLL SA does not have the right, after signature of the sale contract, fa use in any way toe 

PfiWdKJ.FMWMM safe (taxes, VAT Charge on the value of the movables, stamp duly, notary fees and mortgage tees, rights and other 

T9. The transfer a»powo6 as per Law 651/1977, etc.) wfB be borne by toa buyer. B Is to be noted tost with regard to the nomopersfionte 

<ttpon*» ** *R»maniodeitt mentioned In pars. 13 of artefe 14 of Law ZOOO/m aid to accordance with para. 11a of arifcte 46a of Law 1832/90 as 

Paredpitiim in too aurton ^tjea can apply to the head office of toe Uflidaw company. GREEK EXPORTS SA. to Athens at 17 Pwwpisdmiou street. 

For further ^ 

1 -jlROOr. Tel: *30.1-38431 n* I®- 


Four Cubans join hands this week to wade out from Cqffmar towards a raft wMcfa they hope will take them to Florida mmn 

Caricom supports Haiti invasion 


By Canute James In Kingston 

Neighbours of Haiti yesterday agreed to 
support a US-led invasion of the Caribbean 
republic, saying the refusal of the military 
leaders there to step down had dosed the 
door to a negotiated settlement of the 
country's political crisis. 

Mr Strobe Talbott. US deputy secretary 
of state, and Mr John Deutch, US deputy 
defence secretary, yesterday attended a 
meeting of the Caribbean Community 
(Caricom) in Jamaica, to agree on the 
Caribbean nations’ role in an invasion. 

Mr Paul Robertson, Jamaica's foreign 
minister, said yesterday that Caricom 
troops would not take part in an invasion, 
but would be involved in a “holding oper- 
ation” before the deployment of a UN mis- 
sion in Haiti. Can coin's decision was a 
“watershed", which indicated “a sense of 
increasing urgency” in tilling with Haiti, 
said Mr Talbott 

Caribbean countries have been reluctant 


to get involved in Haiti militarily, fearing 
domestic opposition to entanglement in a 
problem seen as intractable, as well as to a 
possible flood of refugees. Bat they see a 
holding operation as a way to address 
these fears. 

About 300 Caribbean troops would be 
involved, their task being to maintain law 
and order before, and perhaps after, the 
return to Haiti from exile of President 
Jean-Bertrand Aristide, said a Caricom 
official. Caricom is made up of 13 English 
speaking-members, bat only those with 
standing armies - Antigua, the Bahamas, 
Barbados, Belize, Guyana, Jamaica, and 
Trinidad and Tobago - will be involved. 

"As this has been done by some of their 
closest neighbours, albeit some without 
military might, tbe Haitian leaders must 
now know that foreign military interven- 
tion is imminent unless they step down in 
a few days,” said a Caricom spokesman. 

Military staff officers from the Carib- 
bean countries will join their US, British 


and Argentine counterparts to “finalise 
and co-ordinate arrangements” for the mil- 
itary intervention in Haiti, said Mr 
Erskine Sandiford, prime minister of Bar- 
bados and Caricom chairman. The Carib- 
bean contingent will be trained at a US 
naval base in eastern Puerto Rico. 

US and Caribbean officials refused to be 
drawn on tbe timing of an invasion of 
Haiti. But Caribbean military sources said 
the plans were in place and only awaited 
President Bill Clinton's authorisation. 
They expected that US forces, led by spe- 
cial groups such as naval Seals, would 
infiltrate Haiti under the cover of dark- 
ness and disable strategic targets, includ- 
ing command and control centres or tbe 
Haitian military. 

Some Haitian junior officers, according 
to Caribbean military sources, have been 
holding clandestine meetings with repre- 
sentatives of foreign intelligence agencies, 
mainly the US. and have committed them- 
selves to support the invasion. 


Splits follow an election defeat 

Damian Fraser finds the main Mexican opposition parties troubled 

D ivisions have emerged date, appears caught between legitimacy, if not the legality, wonder whether Mr Dieg 
within Mexico's two the two wings. He has of the result. On Tuesday, the Fera&ndez de Cevallos, the pai 
ni ff opposition par- denounced the election as PAN called for new laws to tys presidential candidate ku 


D ivisions have emerged 
within Mexico's two 
main opposition par- 
ties, following their heavy 
defeat in the presidential elec- 
tion of August 2L 
Both the leftist and centre- 
right opposition have blamed 
unfair electoral conditions - 
the ruling party's massive 
spending in the campaign and 
its favourable television cover- 
age - as the key reason for 
defeat 

But both opposition parties 
are internally divided on the 
best way to push for fairer 
future elections, and how for 
they should co-operate, if at 
all, with the administration of 
Mr Ernesto Zedillo of tbe rul- 
ing Institutional Revolutionary 
Party {PRD, due to take office 
in early-December. 

The leftist Party of Demo- 
cratic Revolution (PRD) - 
which came third with I7.I per 
cent of the vote - is increas- 
ingly split between a radical 
faction, which supports chal- 
lenging the election results 
through civic protests, and a 
moderate wing which believes 
that the party should move to 
the c&tre, and focus on pres- 
enting evidence of fraud to 
electoral tribunals. 

Mr Cuauhtemoc Cdrdenas. 
tbe oar-tv's mesidential candi- 


date, appears caught between 
the two wings. He has 
denounced the election as 
fraudulent - even though most 
observers believe reported 
irregularities did not affect the 
result Yet he has called on his 
supporters to avoid the sort of 
mass mobilisations that have 


legitimacy, if not the legality, 
of the result On Tuesday, the 
PAN called for new laws to 
govern the conduct of political 
parties and to separate the PR1 
from the government 
The PAN’s divisions are less 
profound than those of the 
PRO. in part because the for- 


Interest rales on Mexican short- and long-term government 
paper rose sharply yesterday, reflecting concern over the coun- 
try's political and economic situation, writes Damian Fraser. 

The interest rate cm 28-day paper rose by 51 basis points to 14 
per cent, and cm one-year paper by 75 points to 13.18 per cent 
The rise in interest rates follows weakness in the peso against 
tbe dollar in recent days. Market analysts attributed the rise to 
investor nervousness about Mexico after the election last month 
and about the tnmmhig government's exchange rate policy. 


given the party a reputation 
for extr emism. 

Also, Mr Cdrdenas, who has 
so for held the party’s two ten- 
dencies together, has said he 
win not ran for office again. 
Hence his ability to unify the 
party's various factions may 
diminish 

The leaders of the centre- 
right National Action Party 
(PAN) have implicitly accepted 
the victory of Mr Zedillo and 
tbe PRL However, under pres- 
sure from many of their sup- 
porters. the leaders have 
stepped up attacks on the fair- 
ness of tbe Mexican p olitical 
svstem and questioned the 


mer won a greater proportion 
of the vote than ever before, 
the party won 119 of the 500 
seats in the Chamber of Depu- 
ties, 48 more than the PRD, 
and will have 24 seats in the 
expanded Senate. For many, 
the results are a vindication of 
the PAN's strategy of main- 
taining good relations with the 
government 

Even so, the PAN’s failure to 
win much more than a quarter 
of the national vote has led to 
criticisms of dose cooperation 
with the government in recent 
years, and its acceptance of 
electoral conditions that 
favour the PRI. Some even 


wonder whether Mr Diego 
Fera&ndez de Cevallos, the par- 
ty’s presidential candidate last 
month, had done a deal with 
the PRI to lose the election. 

The PAN has been particu- 
larly hurt by heavy losses In 
the three states which it gov- 
erns - Baja California, Guana- 
juato and Chihuahua. The 
PAN had hoped that these 
local strongholds would act as 
a springboard for national vic- 
tory. The PAN’s best showing 
was in states firmly controlled 
by the PRI - Jalisco. Nuevo 
Le6n and Sonora, indicating 
that much of its support is 
based on a protest vote. 

Mr Vicente Fox, the PAN 
leader from Guanajuato, last 
week attacked Mr Fernfindez 
for having accepted the PRI 
victory and having described 
the electoral process as clean. 

Such internal criticisms have 
led to a notable hardening in 
statements by Mr Fem&ndez 
over recent days. In an outspo- 
ken television interview on 
Sunday night he sharply crit- 
icised the extravagant cam- 
paign spending of Mr Zedillo 
and the favourable coverage 
the latter had received on tele- 
vision. The PAN leader with- 
held a full endorsement of Mr 
Zedillo's victory, describing it 
as an illegitimate triumph. 





FINAJVCT AX TTTVfES THURSDAY SEPTEMBER 1 1994 

THE IRA CEASEFIRE • 


Prize of peace 
in Ulster has 

been closer 

Mr John Major, the prime 


never 


By Ptiffip Stephens, 

Political Editor 

It may be too soon to celebrate. 
It is not too early for hope to 
displace the cynicism that has 
long suffocated politics in 
Northern Ireland. 

The prospects for a perma- 
nent peace remain uncertain. 
But the prize has never been 
closer since the present round 
of killings started 25 years ago. 
The grip of history has been 
loosened. 

Building a political settle- 
ment in a province where 
many are more frightened of 
peace than of war will not be 
easy. The misery inflicted on 
the people of Ulster by the 
mindless killings is matched 
only by the mutual mistrust 
across the sectarian divide. 
The habit of murder is deeply 
ingrained. 

Nor does not it take much 
understanding of the past to 
appreciate that the objectives 
of the IRA and of the unionist 
majority are as irreconcilable 
today as they have ever been. 

After so many vicious mur- 
ders over so many years, no 
one can be expected to take the 
IRA statement on trust There 
was no mention of that most 
critical word - permanent 

It may be that the present 
generation of republican lead- 
ers have given up hope of mili- 
tary victory. Certainly some in 
British intelligence share that 
view. History however - still 
an insidiously powerful force 
in Northern Ireland - reminds 
us that past ceasefires have 
split the republican movement 
The killing has then resumed. 

The IRA remains as strong 
militari ly as it has ever been. 
Some of its commanders will 
be looking for an opportunity 
to resume what they call the 
armed struggle. 

The response of the so-called 
loyalist paramilitaries - 
responsible in recent years for 
about half the killing in the 
province - will be crudaL 

The Rev Ian Paisley's warn- 
ing of civil war lived up to the 
characteristic intemperance of 
the hard-line Democratic 
Unionist leader. He is right, 
th o u gh , that the working-class 
Protestants need persuading 
that the price of peace has not 
been a weakening in Britain's 
commitment to the province. 


minister, and Mr Albert Reyn- 
olds, his Irish counterpart, 
have shown rare dete rminati on 
and grit in pushing the process 
this far. 

Mr Major, as beleaguered a 
prime minister as any in 
recent history, shrugged off 
the brickbats of colleagues who 
whispered behind their hands 
that last December’s Downing 
Street declaration was destined 
to foil. 

He has gone as far as a Con- 
servative leader could to 
rebuild trust with Ulster's 
nationalists and with the Dub- 
lin government The personal 
risks have been considerable. 
So too have been his negotia- 
ting skills. 

Mr Major managed thus 
far to avoid a backlash horn 
the moderate majority among 
fhrt unionists by ensuring that 
the door of 10 Downing Street 
has been ever open to Mr 
James Molyneaux, the leader 

‘I do believe this 
is the beginning of 
the end. That 
proves to my wife 
and I that Tim’s 
life may not have 
been lost in vain 9 

Cofin Parry, father of 
13-year-oid boy Idled in 

Warr in gton blast last year 


of the Ulster Unionists. Be has 
been rewarded by acquies- 
cence, if not enthusiasm, from 
the leader of the province’s 
most important political party. 

It will be harder now than it 
has ever been to sustain that 
careful political balancing act 
But if the IRA statement does 
presage peace, Ireland could 
rescue Mr Major’s premiership. 

Both prime ministers will 
have to take more risks. There 
wiU be many calling them- 
selves Catholics or Protestants 
determined to wreck the initia- 
tive. There will be strains 
between London and Dublin. 

The contrasting tone of the 
responses in the two capitals 
underlines the danger. The 


understandable euphoria in 
Dublin was not echoed in 
Downing Street Mr Major’s 
statement spoke in more mea- 
sured terms of the need to con- 
firm that this is more than a 
pause in the kiiiEng - 

The risk is that an ambigu- 
ous ceasefire will create a rift 
between London and Dublin; 
that Mr Reynolds will be too 
eager to respond quickly to the 
IRA statement and that Mr 
Major wiU be unduly cautious. 

The political compromises 
behind the Downing Street dec- 
laration and t he se arch for a 
new constitutional framework 
for Ulster would then be 
threatened. Some in Whitehall 
believe that has been the IRA’s 
game-plan all along. 

So the two governments 
must stick firmly to their pub- 
lic pledge that there will he a 
place at the negotiating table 
for Sznn Ffein. the IRA’s politi- 
cal wing, only when it is clear 
the renunciation of violence is 
irrevocable. 

The fundamental principle 
on which co-operation between 
London and Dublin has been 
based is that of consent - in 
short, it is (and always will be) 
for the people of Northern 
Ireland to decide their own 
future. 

For an his government’s pro- 
testations that nothing has 
changed in its attitude to the 
future of Ulster, Mr Major has 
moved in the direction of the 
nationalists. 

He has made explicit what 

has been Em ptiest, but carefnlly 

hidden, in the approach of suc- 
cessive governments since 1973 
— that Bri tain has no " selfish 
or strategic'’ interest in main- 
taining Ulster as part of the 
union - it will do so only if 
and for as long as a majority in 
the province so wish. 

For his part Mr Reynolds has 
been obliged to admit the legit- 
imacy of the unionist veto - 
that the nationalists’ long- 
standing riernawri for self-deter- 
mination in Ireland cannot 
override the wishes of a major- 
ity in Northern Ireland. 

That principle must remain 
inviolate. If Mr Major steps 
just an inch over the line divid- 
ing neutrality from persuasion 
he will lose the support of mod- 
erate unionists and face a 
backlash on his own back 
benches. 





ThefOkl 







•• kfeur cepufcfcSn, • :> - 

: *' J 

affiances «no n/r wa 

, yifo. hefiesye that a? c U . 





__ . . WkfoorfWeriqe <3 
svvbich' created th& ccmffict 


ddHfova tafcL vteiwtothat 
kr& sisaMfork' .... 


new sHjwfibn wifi 

' and paKeoGe."'X . • ■ .. . 

:■** ■' v ;£ **“ -J« ’ v , 

! *• j -I.' . v ’• ** 'i •' *, i'. £ *. - aU* 


po&mftyfon 
icf Northern 


mmM 

^ It " ; y*"?,! .5 


tenunbteJ^ say, 

•• ' ' ' ' 





>.i fe !$ • 

In his understandable enthu- 
siasm to ensure that the 
rharo* of peace is not lost, Mr 
Reynolds must be careful to 
ensure that reassurances to the 
unionists offered by London, 
are not undercut by nationalist 
tfi umpiitiiism in Dublin. 

Every step for the next few 
weeks wQl be an awkward one. 
There are ways In which the 
British . government-; "pan. 
respond quickly' to thecessa- 
tion of violence - by lifting the 
broadcasting ban on Sinn Ffem, 
by changing the pattern of pol- 
icing in Northern Ireland - 
which involve few risks. 

But it cannot allow the 
slightest hint that its actions 
are bring driven by the threat 




of a resumption of IRA killing. 

Mr Major and Mr Reynolds 
must move quickly to finalise 
the outline plans for a political 
settlement they have been 
promising since early summer. 

The shape is dear - dilution 
of the republic's constitutional 
claim to Northern Ireland, 
changes in Britain's 1920 
Ireland Act to enshrine the 
principle of consent, a 
devolved Northern Ireland 
assembly and new cross-border 
institutions to build trust 
between north and south. 

It is talks on this document 
that Sinn Frin will be invited 
to join if in, say, two or three 
months’ time the IRA has 
proved Its good intent 


You do not have to search 
too hard around Westminster 
to find those confident that 
even if the process gets that 
far, the nationalists' demand 
for a u nited Ireland and the 
determination of the Protes- 
tant majority to sustain the 
union will quickly restore the 
familiar deadlock. 

History Is on the side of the 
cynics. But this time there Is a 
decent chance the future will 
not be a prisoner of the past 
The prime said yesterday that 
34.68 people had died in the 
sectarian terror which has 
engulfed Northern Ireland for 
25 years. Maybe, just maybe, 
that is enough even for the 
IRA. 


Next step 
hangs on the 
missing word 


By David Owen 

The ceasefire is complete - but 
is it permanent? On that ques- 
tion yesterday hinged what 
happens next in the Northern 
Ireland peace process. 

When it flashed on to news 
screens at 1L54 am, the IRA's 
212- word statement contained 

many frna phrases and much 

grounds for optimum. 

But it pointedly avoided 
^irnpining the organisation to 
the permanent cessation of vio- 
lence T/indon and Dublin have 
demanded before allowing Sinn 
F6fn into political talks an the 
province's future. Instead it 
promised a "complete cessation. 
oT mfii te r y ope rations ” as of 
midnight last night. 

It might seem churlish to 
quibble over semantics on one 
of the most historic days in the 
province’s recent history. But 
IRA leaders must have known 
that their gferfwmant would be 
judged by many on the basis of 
whether it committed them to 
a permanent ceasefire. 

It seems inconceivable, 
therefore, that the word’s 
exclusion was not carefully 
Judged and deliberate. This 
was certainly the view of 
unionists, who quickly warned 
that, the statement did not ful- 
fil the two governments’ terms. 

Mr James Molyneaux, the 
Ulster Unionist party leader, 
said bluntly it could not “trig- 
ger” the countdown of the 
three-month period within 
which London has promised to 
enter preliminary dialogue 
with Sinn Fein in tiie event of 
a permanent end to violence. 

It is crucial that Mr Mriy- 
neaux stays on board if the 
revitalised peace process is to 
stand any chance of success. 

Mr John Major’s initial 
response to the statement, first 
circulated about lunch time, 
was somewhat ambiguous. "I 
am greatly encouraged by this, 
but we need to be clear that 
this is Indeed intended to be a 
pennanent renunciation of vio- 
lence, that is to say, far good,’* 
lie redd, implying that the 
clock would not -start ticking 
without clarification from 
republican leaders. 

“If they are genuinely and 
irrevocably committed to use 
only peaceful and democratic 
methods in the' future, tben we 
shall respond positively.'’ 

But his exhortation to “let 
words now be reflected in 


deeds,” s u ggested it might be 
acceptable for- the clarification 
to take the form of an. extended 
period without violence. 

Sir Patrick Mayhew, North- 
ern Ireland secretary, later 
ati gngri the government firmly 
with Mr Molyneaux, however, 
saying that the question of per- 
manency did have to be 
resolved before the govern- 
ment would consider that the 
three-month period had 
started. 

“This is so Important a mat- 
ter that it ought not to be left 
at large or able to he the sub- 
ject of discussion and argu- 
ment," Sir Patrick said. 

His words appeared to open, 
up daylight between the gov- 
ernment’s stance and the posi- 
tion'of Mr Albert Reynolds, the 
Irish prime minis ter, who said 
he thought IRA violence was 
permanently finished. 

It also opened the prospect of 
a tense period of cat-and-mouse 
politics involving the two gov- 
ernments and republican lead- 
ers, similar to that which fol- 
lowed the Downing Street 

lindanitinn 

Under the timetable set out 
by the government, prelimi- 
nary talks would begin with 
ShmFrin within three months 
tf it receiving the assurances it 
requires. This would have 
three purposes: 

• To explore the basis on 
which Sinn Fdin would be 
admitted to ah “inclusive polit- 
ical talks process”; ' 

• To exchange views an how 
Sinn F6in would be able in 
time to. play the same part as 
the other constitutional parties 
in Ulster's public life; 

• To «™niiu> the practical 

consequences of ending vio- 
lence. . ' ... 

These practical matters 
would he expected to include 
the handing in of IRA weap- 
ons, the treatment of IRA pris- 
oners, the question of security 
and the broadcasting ban on 
Sinn F6in representatives. 

Some mfaristers bdiflve the 
ban no longer serves any .me- 
tal, purpose and should be 
lifted as soon as possBrie^ . 

On troop deployment^ the 
government is expected to 
emphasise that decisions, are 
the responsibility of military 
commanders. But a reduction 
of troop strength in response to 
a reduction in the perceived 
threat of violence has not been 
ruled out 


Development 
fund stands to 
gain new cash 


By Mchael Cassell 
and David Gardner 

If the wheels of peace are to be 
portly oiled by a fresh Injec- 
tion of foreign finance, then 
the International Fund for 
Ireland Is likely to be among 
the main recipients. 

With reports suggesting that 
the administration of Mr BUI 
Clinton, US president, could 
provide up to £13Qm In aid, 
the fond - which already gets 
£13m a year from the US gov- 
ernment - could soon find 
Itself receiving extra cash. 

Mr Albert Reynolds, Irish 
prime minis ter, said Mr Clin- 
ton had assured him yesterday 

that the US Intended to work 
on an economic package to 
underpin the peace process. 

At the same time, Mr Jac- 
ques Delars, president or the 
European Commission, said in 
London he would be proposing 
an increase in aid. He added: 
“The future of Northern 
Ireland Is a matter for the 
Irish, but also a European 
matter." 

The fond, which already has 
the confidence of the 
Americans and European 
Union nations, would provide 
a ready-made conduit for 
much of the promised addi- 
tional money. It was set up In 
1986 by the governments of 
the US and the Irish Republic 
and has now established itself 
as an «*«iglne for improvement. 

Until recently US budget 
cots meant the fond faced a 
reduction in the annual contri- 
bution voted to it by the US 
Congress. At the beginning of 
August, however, the sum was 
again fixed at £13m and the 
figure could now be raised sev- 
eral times over. Since 1989 the 
EU has contributed EculSnx 
(£l2m) a year. 

The fund, whose total avail- 
able resources by the end of 
last year stood at £225m, was 
established by the two govern- 
ments to promote economic 
and social advance both in 
Northern Ireland and tn the 


six border counties in the 
south. It is also charged with 
encouraging “contact, dia- 
logue and reconciliation” 
between nationalists and 
unionists throughout Ireland. 
Last year it helped create more 
that 2,600 jobs. 

Although the US and the EU 
have been among the principal 
sources of Its finance, the fund 
has also been supported by 
Canada and New Zealand. 

The board of the fund Is 
appointed jointly by the Irish 
and British governments and 
operations are controlled by 
joint di recto rs-generaJ based 
in Belfast and Dublin. Much of 
the day-to-day work, however, 
is carried oat on the flmd’s 
behalf by government depart- 
ments and agencies. 

The organisation, which Hm 
laid great emphasis on its 
independent status in order to 
give it credibility, has acted as 
a catalyst In encouraging eco- 
nomic reg en eration in many of 
the most disadvantaged areas. 
It provides seed funding to 
stimulate public and private- 
sector investment and also 
encourages self-help schemes 
to bring together alienated 
communities. 

Particular efforts have been 
made to promote cross-border 
projects, intended to contrib- 
ute to the development of the 
Island as a whole. These, 
together with additional help 
programmes in inner-city 
areas, could be significantly 
expanded. 

There have already been a 
series of “flagship” cross- 
border projects, such as the 
Shannon-Erne waterway. Aid 
also goes to creating communi- 
ty-based businesses, develop- 
ing science and technology 
and tourism. 

The EU has already allo- 
cated Ecul-23bn tn stru c tu ral 
aid to Northern Ireland for 
1994-99, Up from Eeul Jffhn in 
1989-93, mostly to develop 
infrastructure, training 
s ch em es, research and devel- 
opment and small businesses. 


Markets show first flicker of positive response 


By Tim Coombi Dublin 
and WB Lewis ki Belfast 

The first flicker of a positive response 
by the markets to the IRA ceasefire 
came yesterday as several Northern 
Ireland companies made gains on the 
ij>ndon Stock Exchange. 

The share prices of companies such 
as Northern belaud Electricity and 
Ewart, the property developer, 
advanced by about 5 per cent to 6 per 
cent, against an overall FT-SE index 
gain o£ 1.7 per cent 

It is obviously early days to assert 
that a trend is emerging from these 
gains, but they are indicative that 
business in the province 

will grow if the ceasefire holds and 
that economic benefits for the prov- 
ince, and even for the republic, win 
flow from an end to the violence. 

Mr Albert Reynolds, the Irish prime 
minister, said yesterday: “I have 
always believed there would be a 


huge peace dividend for the island of 
Ireland." 

The first payments on that are 
expected to come from the US. Mr 
Reynolds taikad by phone to US Presi- 
dent Bill Clinton yesterday, following 
tho IRA arid said he 

believed US economic support for the 
peace process “is going to be very 
important President Clinton assured 
me today that he going straight away 
to work at an economic package to 
underpin the peace process in North- 
ern Ireland." 

Mr Dick Spring, the Irish foreign 
minister, is to be despatched to Wash- 
ington shortly to follow this up. 

The US money will boost confi- 
dence, but of far greater importance 
will be decisions by the business com- 
munity - both local and from over- 
seas - on whether to boost invest- 
ment in the province. 

An FT surrey of business opinion in 
Northern Ireland in December last 


year revealed that more than half of 
the 56 leading companies surveyed 
believed that a political settlement, 
arising from an end to violence, 
would have a very positive effect on 
business and economic opportunities 
in Northern Ireland. A further 38 per 
cent believed that the effect would be 
“fairly positive”. 

An additi o n al benefit from an end- 
ing of the IRA bombing campaign. wiU 
be a sharp reduction in compensation 
costs. The Northern Ireland Office 
currently pays between £30m and 
£50m a year in compensation to indi- 
vidual and corporate victims of the 
violence. 

The stationing of some 19,000 Brit- 
ish troops in the province, and tire 
maintenance of the RUC police force 
at a strength of around 12.000, 
imposes an even heavier burden on 
the Exchequer - thought to be in 
excess of £lhn per year. In addition, 
there is an Exchequer subsidy to 


Northern Ireland of a further £3bn. 

Economic development will reduce 
unemployment, raise the taxation 
base and alow a reduction in this 
subsidy, which if required could be 
recycled into investment projects. 

A joint statement by Mr Drag Rfiey, 
chairman of tbe Confederation of Brit- 
ish Industry in Northern Ireland, and 
Mr Paddy Murphy, president of the 
Chamber of Commerce and Industry, 
said “real economic benefits” would 
flow from “peace and creation of a 
stable political framework based on 
agreed democratic principles". 

Potential benefits included 
improved confidence leading to more 
investment and cross-border trade, 
the development of new products and 
“a more expansive approach which 
could mean significant new employ- 
ment opportunities”. 

Yesterday most small businesses 
along the Catholic Falls Road and the 
Protestant Shankgl Road were scepti- 


cal about the effect of the IRA’s state- 
ment on their businesses. 

Mrs Jan Cheevers, owner of Steven- 
sons florists in the Shankfll Road, 
said: “If peace comes then it may help 
me, but I can't see that happening" 

Her shop is next door to the fish 
shop bombed by tbe IRA last October. 
Nine people and the bomber died. 
“There is no trust any more,” she 
add. Nearly all of her customers are 
Protestants. 

A newsagent in the Falls Road who 
did not wish to be ntmn»d said: “I 
suppose we may get some more tour- 
ists up here now, but really things are 
likely to go on much the same.” 

The manager of a taxi company 
based rathe Falls Road said that the 
only benefit he would get was from 
increased aid from Wn» US. “If thfa 
leads to Clinton giving us more 
money then that obviously is good. 
But other than that business will 
probably go on as normaL” 



Across the divide In west BeHhst yesterday: Gerry Adams, the Stan Fdfn leader, at a rally after the ceasefire announcement, 


and Cathol ic schoolgirls between, a aMiiw «wt RTifl officers on patrol 


* 









, -*4 l 




.p ■ 1: 1 4 

Lass •- 

es**-" V.; V- 

-i:« 1! 

V. 

pan * J • 

isff** •-••• 

- 

jiitT 

£L31 T-’J.-ti ! 

►rtii i -?• ■ 

H «*;: .vrr.i.H 
dlKJ » •: •: !• S 


r ‘-t v — ' 
--a 

v;-. 

1 pc-fs &•:. Tn: 

kefari;-: : s -: 

^ 4 >. i 

B-U.'5 ^ TTt. 

aa' 



» 



















FINANCIAL TIMES THURSDAY SEPTEMBER l 1994 


THE IRA CEASEFIRE 


Unionists divided in degrees of scepticism 


By Tim Coone and David Owen 

The response by Northern Ire land 's 
unionists to the IRA ceasefire win be 
^unlal in determining how far the 
two government* can respond to it 
consolidating it into what Dublin 
already believes is a permanent 
ceasefire. 

Initial unionist reactions have 
been ambivalent and sceptical Mr 
J un W ilson, general secretary of the 
Ulster Unionist party, said the IRA 
ceasefire did not meet the conditions 
of the Downing street declaration 
and “should not therefore trigger the 
process in which Sinn Ffein could 
enter into exploratory talks with the 
British government". 

Sitting across the negotiating table 
from Sinn Ffein is “way, way down 


the road’', he said. If there is a per- 
manent end to IRA violence thoug h, 
and after exploratory taifca between 
Sinn Fein and the British govern- 
ment, “as a democratic party we 
would envisage a situation in which 
we would talk to other democrati- 
cally elected parties". 

Mr James Molyneaux, leader of 
the UUP, emerged from an hour-long 
meeting with prime minister John 
Major at Downing Street to say that 
he did not think the IRA’s gfa tenant 
was sufficient to start the clock tick- 
ing in the lead-up to talks between 
London and Sinn F&n. 

“I hope those who have tnfhianre 
with Sinn F&n/IRA wfll be able to 
take the next step and make it per- 
manent," Mr Molyneaux said . 

In a message to loyalist paramili- 


taries, Mr Molyneaux said there was 
“no justification or excuse Tor vio- 
lence on the part of anyone.” 

The harritinp. Democratic Unionist 
party has been predictably apocalyp- 
tic in its response. Mr fen Paisley, 
the DUP leader, was earlier this 
week warning of a “civil war” if the 
IRA ceasefire involved a deal with 
the British government. 

Mr Gregory Campbell, a DUP 
councillor from Derry, said: “The 
ISA is re placing violence as a nwant 
of achieving its aims, with the threat 
of violence. Does anybody believe 
there has been no deal? We await 

with great interest what the British 
government has agreed to do In 
return.” 

The DUP remains steadfastly 
opposed to talks with Sinn Ffein at 


any stage in the peace process, and 
has refused to enter round-table 
talks even with the other parties in 
the province unless the Downing 
Street declaration is rescinded. 

With the prospect of inclusive 
round-table talks still some way off. 
of immediate concern for the politi- 
cians and the security forces in 
Northern Ireland is whether there 
will be a backlash from the loyalist 
paramilitaries which could under- 
mine the IRA ceasefire. 

The Combined Loyalist Military 
Command, the umbrella group for 
the two main protestant paramili- 
tary groups, the UVF and the UFF, 
appears to be waiting to see what 
happens. In a statement yesterday it 
said: “We will not be dancing to the 
Pan -nationalis t tune," an d added : “Is 


our constitution being tampered 
with or is it not? What deals have 
been done? End the speculation. No 
further comment will be forthcom- 
ing from the Combined Loyalist Mili- 
tary Command at present" 

Perhaps the most encouraging sig- 
nal that loyalist reaction may be 
restrained has come from Mr Hugh 
Smyth, Belfast’s Lord Mayor, who is 
a member of the Progressive Union- 
ist party, whose political base is in 
the loyalist Shankill Road area in 
Belfast and Is considered close to the 
Ulster Volunteer Force. 

He welcomed yesterday’s “oppor- 
tunity for peace" and urged the peo- 
ple of Northern Ireland to “grasp 
this opportunity because history will 
not treat us kindly if we throw this 
opportunity away, providing that 


there Is no sell-out I believe we 
should all work now for peace, sta- 
bility and political progress through 
reconciliation." 

He described Republican aspira- 
tions tor a united Ireland as “legiti- 
mate” as long as they are not pur- 
sued by violent means. 

The key issue facing unionist lead- 
ers in the weeks ahead, therefore, 
will be whether they can bury their 
di ffe ren c es to confront what is now 
likely to emerge as a powerful 
nationalist alliance with agreed 
negotiating goals, between the 
mainly Catholic SDLP and Sinn Ffein 
in Northern Ireland, backed by 
Fianna Fail and Labour in the gov- 
ernment in the Republic. Failure to 
do so may well see a further erosion 
of unionist aspirations. 


Cautious 
response 
from UK 
leaders 


By Roland Rudd and Our 
Belfast Correspondent 

The prime minister was 
yesterday urged by ri gfa t win g 
Conservatives not to embark 
on constitutional talk* with 
Sinn F&n until the IRA agreed 
to a permanent ceasefire. 

Among Northern Ireland 
politicians, nationalists 
greeted the ceasefire 
announcement with delight 
while unionists voiced suspi- 
cion that the statement did not 
signal a permanent end to the 
IRA’s terrorist rampnlpi 
Sir George Gardiner, chair- 
man of the 92 group of Thatch- 
erite Tory MPs, warned of the 
risk of “igniting opinion in the 
majority of Northern Ireland" 
if ministers moved too fart in 
response to the IRA ceasefire. 

Mr Andrew Hunter, a mem- 
ber of the Commons Northern 
Ireland select committee, 
feared it could be “a tactical 
ploy - a pause In the MUing”. 

He said: “Yon cannot possi- 
bly sit at a table and negotiate 
with people who win resume 
killing if they don’t get what 
they want in those negotia- 
tions - that is an impossible 
sUuaaan.’* 

An Indication of the poten- 
tial Tory opposition to consti- 
tutional talks with Stain Ffln 
came with the publication of a 
pamphlet by Mr Norman Lam- 
ent, the former chancellor, 
who argued against involving 
Sinn Frin in talks. 

Mr Lament’s pamphlet, writ- 
ten before yesterday’s 
announcement, said Sinn 
Fein’s participation in a con- 
stitutional conference would 
put ministers In the position 
of being held responsible for 
the next round of terror if they 
do not give in to the IRA 
blackmail of threatening to 
pull oof. 

On the left of the Tory party 
Mr Peter Temple-Morris said 
people were "afraid of peace". 
Another Tory backbencher 
urged unionists to “seize the 
opportunities of peace” and 
break the "hatred of the past". 

Mr Tony Blair, Labour 
leader, gave a cautious wel- 
come to the ERA ceasefire, but 
stressed the test would come 
In whether it led to a perma- 
nent renunciation of violence. 

Mr Faddy Ashdown, Liberal 
Democrat leader, said: “If the 
IRA has at last realised that it 
cannot achieve Its aims 
through violence, then this Is 
a very i mporta nt moment for 
peace in Northern Ireland.” 

In Northern Ireland, union- 
ist politicians said the IRA 
should surrender its arsenal of 
weapons and explosives to 
prove it was serious about 
ending terrorism tor good. 

But Mr John Home, leader 
of the Soda! Democratic and 
Labour party, who put his rep- 
utation on the line by talking 
with Stan Ftin, said the cease- 
fire would be “welcomed by 
Irish people everywhere, but 
particularly by the people in 
the streets of Northern 
Ireland. Now we face the pri- 
mary challenge which is to 
reach agreement among our 
divided people." 

The Rev William McCrea, an 
MP from the hard-line Demo- 
cratic Unionist party, said the 
IRA was not seeking peace but 
trying to blackmail the gov- 
ernment into giving more con- 
cessions. , . . 

Dr John AMerdice, leaders 
the moderate Alliance party, 
commented that actions would 
speak fender than words. 

Mr Terry Carlin, regional 
officer of the Irish Congress of 
nude Unions, called on all 

paramilitary organisations to 

bait the violence. There s alot 
if work to be done in heatamr 
the wounds and the mental 
md physical scars of social 

of 

ailed on the governmeut to 
reconsider broadcasting 
restrictions on 

tors in view of the ceasefire 
innooncemenL 


Molyneaux 
holds the 
power of veto 


By Phfflp Stephens 

It was no accident that Mr 
James Molyneaux was in 10 
Downing Street within, hours 
of the IRA’s announcement 
yesterday of an end to its cam- 
paign of violence. 

Nor was it by chance that his 
publicly voiced concerns about 
the absence in the IRA state- 
ment of the word “permanent" 
were echoed by Mr John Major. 

Mr Molyneaux, the MP for 
the Protestant stronghold of 

lagan VaTlw y anri leader Of the 

mainstream Ulster Unionists, 
holds a veto over the prime 
minister’s search for a durable 
political settlement in North- 
ern Ireland. 

Without his tacit consent, Mr 
Major could not have struck 
the political deal with Dublin 
which provided the essential 
backdrop to the IRA’s derision. 

Mr Molyneaux did not like 
the Downing Street declaration 
or the subsequent clarifica- 
tions. But he acquiesced. 

Had he decided otherwise, 
Mr Major - an embattled prime 
minis ter with a perilously 
small majority and plenty of 
enemies on his own back- 
benches - would have had to 


abandon the enterprise. 

The same will be true now. 
Assuming that the IRA is gen- 
uine in its intent, Mr Moly- 
neaux wOl have a similar influ- 
ence over the pace and extent 
of Mr Major’s government’s 
response. An eventual political 
settlement will depend on his 
signature 

Mr Molyneaux is no soft 
touch. One of the most experi- 
enced figures in Ulster politics 
- he has been an MP since 1970 
and celebrated his 74th birth- 
day at the weekend - his com- 
mitment to unionism is as 
strong as any in the commu- 
nity he represents. 

Taciturn hut instinctively a 
shrewd political operator, he 
has survived longer than many 


expected as the top of one of 
fee roughest political environ- 
ments in western Europe. 

Over 15 years he has headed 
off several potential challang un 
to his leadership of the Official 
Unionist party, which haa nine 
BSPs. He has contained the 
threat to his party’s position 
from Mr Ian Paisley’s more 
extreme Democratic Unionist 
party. 

He is deeply suspicious of 
any negotiation between Lon- 
don and Dublin, film many in 
the unionist community, he 
sees no reason why the repub- 
lic shnnld have any role in dis- 
cussions on the future of part 
of flnnHmr sovereign sfate. 

His stated preference for a 
political settlement has been 
greater Integration of Ulster 
Into the political process at 
Westminster - or faffing that, 
the creation of a devolved 
assembly in the province with 
no interference from Dublin. 

But Mr Molyneaux Is a man 
of Westminster as well as of 
the raw politics of Ulster. He 
lacks the Intemp erate bigotry 
of some in the unionist com- 
munity. He believes that if 
deals are to be made, than it is 
better to remain on the inside 
trade than to join Mr Paisley in 
shooting from fee sidelines. 

Mr Molyneaux has judged so 
far that the interests of the 
unionists would not be served 
by derailing the process which 
led to yesterday's IRA cease- 
fire And despite his insistence 
on proof Of its permanence, the 
signs yesterday were that he is 
willing to acquiesce in farther 
moves along the same road. 

To his opponents in the 
nationalist community, Mr 
Molyneaux is a stubborn and 
blinkered man whose refusal 
to admit even the possibility of 
Irish unity will be a permanent 
obstacle to a political settle- 
ment. But without him Mr 
Major and Mr Reynolds would 
not have got even this far. 



The day peace broke out in Downing Street, Ulster Unionist leader Ja 
Reynolds (top) and in New York, provisional IRA leader Josepb Cahill 


Molyneaux (left); in Dublin, Irish prime minister Albert 

PHtiagnph* Ttawr Huwpftrto. Amnrirtad Piw. Rautar 


Clinton 
hails 
start of 
‘new era’ 


By George Graham 
in Washington 

and David Gardner in Brussels 

US president Mr BUI Clinton 
yesterday greeted the ERA'S 
ceasefire as a “watershed 
announcement". 

The European Commission 
also hailed the breakthrough 
and said it would step up its 
efforts to aid the province. 

Mr Clinton said: "While 
much work remains to be 
done, the IRA’s decision to join 
the political process can mark 
fee beginning of a new era that 
holds the promise of peace for 
all the people of Northern 
Ireland." 

In a statement from fee Mas- 
sachusetts island of Martha’s 
Vineyard, where he is on holi- 
day, Mr Clinton said he hoped 
fee ceasefire would Lead to 
something more permanent. 

“1 urge the IRA. and all who 
have supported it, to fulfil the 
promise of today's announce- 
ment to end the use and sup- 
port of violence, just as we con- 
tinue to call on all parties who 
have sought to achieve politi- 
cal goals through the use of 
violence to cease to do so. 
There must be a permanent 
end to violence.” 

Mr Clinton, who spoke by 
telephone yesterday morning 
with Mr John Major, the prime 
minis ter, and his Irish counter- 
part, Mr Albert Reynolds, said 
he was “pleased feat the US 
has been able to contribute to 
this process of reconciliation”, 
and was ready to assist in 
advancing the process of peace. 

He gave no details of any 
possible increase in US finan- 
cial aid to Northern Ireland. 

US officials are discussing a 
financial package, though fig- 


ures have not yet been decided. 

White House officials said 
there were no plans yet for any 
joint meeting of Mr Clinton, Mr 
Reynolds and Mr Major, but 
they were “aware of interest 
from the Irish government” in 
such a meeting. 

Privately, some White House 
officials see the ceasefire 
announcement as vindication 
of their derision - overriding 
objections from the Depart- 
ments of State and Justice, and 
the British government - to 
allow Mr Gerry Adams, the 
Sinn Ffiin president to enter 
the US in February. 

Mr Jacques Delors, the Euro- 
pean Commission president, 
took the opportunity to stress 
the importance of the “Euro- 
pean dimension". 

He said he would discuss 
"additional financial and other 
measures" with the UK and 
Irish governments. 

Mrs Pauline Green, leader of 
the European Parliament’s 
largest bloc, the IBS-strong 
Socialist Group, urged “all sec- 
tions of the community in 
Northern Ireland to seize the 
historic opportunity for peace 
that is now before them". 


Limits of republican patience may soon be tested 


By Tim Coone 

When the “troubles” began in 
Northern Ireland 25 years ago. 
graffiti appeared an walls in 
nationalist areas in Belfast and 
Derry saying “IRA = I Ran 
Away”. 

That taunt against the old 
IRA, which did-not want to be 
drawn into sectarian conflict 
with Protestants, provided the 
rallying cry for a new genera- 
tion of republicans who 
wanted to revive the armed 
struggle, largely dormant since 
fee 1950s. The Provisional IRA 
split with the Official IRA and 
has been at the forefront of the 
conflict ever since. 

That new generation is 
today’s old generation, which 


y esterd a y announced an end to 
its 25-year campaign with a 
view to joining a purely politi- 
cal battle for the goal of a 
unite d Ire land 

But if Sinn F6m, the IRA’s 
political wing. Is unable to 
make political headway there 
can be little doubt that hard- 
liners will begin to question 
fee value of the ceasefire And, 
if the ceasefire collapses, the 
position of Mr Gerry Adams as 
Sinn Frin’s Tende r and p rime 
mover of its “peace strategy” 
will inevitably fall into ques- 
tion. 

And if loyalist paramilitaries 
think that an eventual partici- 
pation of Sinn Ffein in negotia- 
tions is leading to significant 
political concessions to nation- 


alists, they may well decide to 
escalate their own military 
actions to undermine the 
ceasefire, rather than respond 
in land to it, as they are being 
urged to do. 

The “I Ran Away" taunt 
could then return to haunt the 
leaders of Sinn F6in and the 
IRA. and create pressure for 
action in defence of nationalist 
communities - or in the worst 
of scenarios, a replay of the 
1970s split that saw the “ Offi- 
cials" enter mainstream poli- 
tics and the young militants 
cany an fee war. 

There Is little doubt in the 
minds of the security forces 
that the IRA is a tightly disci- 
plined organisation. Its “active 
service units” operate in small 


cells. Their weapons are con- 
trolled through a separate 
quartermaster division, and 
bunkered in secret sites in the 
republic and Ulster. The quar- 
termasters are controlled by 
the IRA’s ruling body, its 
Army Council 

The possibility of “maverick" 
units rejecting the ceasefire 
and operating independently of 
the Army Council is minimal - 
although not impossible if 
weaponry exists outside the 
control of the leadership. 

The IRA is believed to have 
some 700 automatic rifles, a 
considerable stock of machine- 
guns. millions of rounds of 
ammunition, 2-3 tons of Sem- 
tex explosive, phis copious sup- 
plies of home-made fertiliser- 


based explosive as well as its 
own-design mortars. 

Senior republican officials 
have repeatedly stressed that 
the IRA and Sinn F6in leader- 
ships are moving in tandem on 
the peace process, and that fee 
possibility of a rupture will not 
arise, either between the 
organisations or within therm 

Some councillors from fee 
Catholic community in Belfast, 
however, believe that the IRA 
leadership is prepared to can 
off the ceasefire If loyalist kill- 
ings escalate and the security 
forces are unable to contain 
them. Some 200 republicans 
are said to have been warned 
by the KUC in the past few 
weeks that loyalists have 
details on them. 


Sinn F&in blames this leak- 
age of intelligence information 
on renegade elements within 
the security forces sympathetic 
to the loyalist paramilitaries. 
The IRA’s commitment to the 
ceasefire is, therefore, likely to 
be in part determined by how 
the security forces respond to 
any upsurge in loyalist vio- 
lence. 

Attempts by armed republi- 
can splinter groups - such as 
the INLA and fee IPLO - to 
pick up hardline support from 
within the IRA by continuing 
the war are considered to be 
limited because of their short- 
age of weaponry and the debili- 
tation of their leadership by 
internal feuding. 

The IRA has also been will- 


ing to act ruthlessly against its 
rivals, if it felt its own territory 
was being invaded or its lead- 
ing role threatened. It Is 
thought that its recent killing 
of a gangland boss in Dublin 
may be linked to the rRA 
asserting its authority and dis- 
cipline within the armed 
republican movement 
There was a firm belief in 
political circles in Dublin yes- 
terday that the IRA is commit- 
ted to a permanent cessation of 
violence. But the rapidity with 
which the Irish government 
has moved to reassure Sinn 
Ffiln that it will be quickly 
incorporated into political 
talks indicates Dublin’s appre- 
ciation that IRA patience has 
its limits. 


Hume entitled to a wry smile 


By David Owen 

The crucial word “permanent” 
did not appear in the IRA’s 
ceasefire statement But these 
must nevertheless be sweet 
moments for Mr John Hume. 

The leader of the mainly 
Catholic Social Democratic and 
Labour party is widely credited 
with injecting vital momentum 
into the peace process through 
his meetings with Mr Gerry 
Adams, the Sinn F6in presi- 
dent, starting in April 1993. 

He was pilloried savagely for 
his troubles - not least when 
he claimed in November there 
could be "peace within a week” 
if the joint Initiative, dismissed 
as “sheer lunacy" by Mr James 
Molyneaux. the Ulster Unionist 
party leader, was emb r a c ed. 

Bat now he is entitled at the 
very least to a wry smile. His 
decision to put his reputation 
on the line by Insisting oo the 


overriding need to bring Sinn 
F6in on board, often against 
the instincts of his senior party 
colleagues, may well have been 
vindicated. 

No wonder he yesterday pro- 
fessed himself “very pleased 
indeed” with the the IRA’s 
announcement and insisted 
that a total cessa ti on of vio- 
lence was at hand. 

The sheer bitterness of the 
vitriol that has at times been 
heaped on him over the last 
year is in some ways readily 

m mppteroahlp 

Apart from his determina- 
tion to sup with the devil, as 
hardline unionists have seen it, 
Mr Home has a reputation fin 
not being a good team player, 
and for arrogance and 
bloody-mindedness. Interviews 
with him can quickly degener- 
ate into university -style tutori- 
als. 

Trig frustration at ftn mm. 


meats of others hi some of the 
heated Commons debates as 
the UK-frish Initiative ground 
its way forward has sometimes 
been counter-productive and 
all too readily apparent 

But Mr Hume, 57, is also a 
man of passion, generosity and 
integrity - besides bring enor- 
mously good company. 

Although steeped in the caul- 
dron of Ulster politics, the 
stress of the last few months 
has been enormous and has 
taken its tolL A cigarette Is 
rarely absent from his grasp. 
Talk of his retirement as MP 
for Foyle, a Westminster seat 
he has held for 12 years in 
addition to s e rv i ng as one of 
fee province's three MBPS, has 
surfaced more than once. 

But it is a safe bet that such 
thoughts are far from his *nmri 
at present 

Among his most pressing 
tasks will be to try to convince 


the British government that 
yesterday’s announcement is 
pn p n g h to start the clock tick- 
ing on the three-month period 
within which London has 
promised to begin talks wife 
Sinn Frin in the event of a 
permanent end to violence. He 
said yesterday that he hoped 
dialogue would begin “as soon 
as possible." 

A respected figure in Wash- 
ington and Brussels, he may 
also have a key role to play 
in encouraging support for 
the substantial package of 
US aid which is widely expec- 
ted. 

The transformation that 
heavy US Investment has 
helped bring about in his back- 
yard of Deny - once the epi- 
centre of fee troubles but com- 
paratively calm in recent years 
- is Seen by many as indicative 
of what might be achieved 
throughout the province. 


US visa gives veteran 
a role in peace process 


By Tan Coone 

The final piece of the jigsaw to 
fall into place before the 
announcement of the IRA 
ceasefire was the granting on 
Tuesday of a US visa to Mr Joe 
Cahill, a veteran republican. 

During the visit of an influ- 
ential Irish-American delega- 
tion to Dublin and Belfast last 
week, Sinn Feta attached great 
importance to the US govern- 
ment allowing a senior repub- 
lican to visit the country. 

The purpose iff Mr Cahill’s 
visit is to explain Sun Feta’s 
and the IRA’s plans to republi- 
can supporters there, and to 
prepare the ground Shm Frin 
efforts to encourage the US 
administration iwtn acting as 
an “honest broker” in develop- 
ing the peace process. 


Mr Cahill, now in his late 
60s, was sentenced to death for 
IRA activity In 1942. The sen- 
tence was commuted, and he 
emerged in the early 1970s as 
a key figure to establishing 
the Provisional IRA when it 
split from the Official IRA. 

He hp«wm» co mmanding offi- 
cer of fee IRA’s “Belfast Bri- 
gade” to 1971. He met Sir Har- 
old Wilson, who was then the 
British prime minister, to 
Dublin on March 13 1972, dur- 
ing a 72-bo nr IRA ceasefire. 
The two met again at Sir Har- 
old’s home in Buckingham- 
shire to July that year. 

Lord Merlyn Rees, then 
Labour’s spokesman on North- 
ern Ireland, described Mr Cah- 
ill and his colleagues as “hard 
men who talked and looked 
like soldiers. 


“They talked solely In terms 
of military victory. There was 
no sign of compromise”. 

Mr Cahill became head of 
the IRA’s Army Council in 
November 1972 and was 
involved to negotiating the 
first Libyan arms shipments 
for the BRA. 

He was arrested by fee Irish 
Navy to March 1973 aboard a 
West German cargo ship, 
accompanying five tons of Lib- 
yan arms. 

He spent time interned to 
Northern Ireland and was 
imprisoned in the Republic, 
where he spent 23 days on 
hunger strike. 

Replaced by a younger lead- 
ership to fee late 1970s, Mr 
Cahill has remained a 
respected figure to fee Repub- 
lican movement. 




FINANCIAL TIMES THURSDAY 1 SEPTEMBER t 1994 


UK 


BT cuts prices in long-distance market 


By Andrew Adonis 


British Telecommunications cut the 
price of long-distance calls within the 
UK by up to a quarter yesterday, In a 
move likely to increase pressure on 
its competitors in the business 
market. 

The reductions, which will cost BT 
£244m over a full year, were made 
within the terms of an agreement 
with Oftel, the telecoms regulator, 
obliging BT to cut its charges by a 
total of about E500m in this financial 
year. They take effect from September 
29. 

Oftel does not dictate the precise 


price cuts BT must mate* , only their 
total value. The reductions are the 
latest in a series aimed by BT at 
business users, who account for a 
disproportionately large share of 
long-distance calls. 

Mercury and other new entrants in 
the business sector earn most of their 
revenue by undercutting BT on 
long-distance call charges. 

In a clear indication of its 
predicament. Mercury said yesterday 
it would be cutting business prices 
“shortly after” BT, but refused to say 
by how much. 

Earlier this year Mercury briefly 
retained the morning peak rate for 


some business customers after BT 

abolished it 

Yesterday's price cut involves 
abolishing the higher rate band for 
calls of 35 miles or more, which 
accounts for nearly three quarters of 
all long-distance calls made in the 
UK. 

It follows a 2Gp reduction, to 2Sp, in 
the cost of calls to directory inquiries, 
which takes effect today at a cast of 
£75m a year to BT. 

BT said that an average business 
customer, with an annual can charge 
bill of £431, would save £20 (4.6 per 
cent) after the long-distance price cut 
The average residential customer. 


with an annual bill of £161, would 
save £8 (3.7 per cent). 

The changes leave BT with about 
£190m worth of cuts to make before 
the end of the year. Analysts believe 
the most likely target is international 
calls, where BT faces Increasingly 
stiff competition. 

Mercury earns nearly half its 
revenue from international calls, and 
several new operators - .including 
WorldCom and MFS - are competing 
hard for corporate international 
business. Energis, a new UK 
long-distance operator using 
electricity pylons for its network, 
opened for business this week. 


Valuation target 
for Broadgate 
set at £1.5bn 


mu'lmSX*-' 




By Simon Davies 
and Andrew Taylor 


Potential buyers of Broadgate 
Properties, the City property 
investment company owned 
jointly by Stanhope and Rose- 
haugb, have been told that the 
company will be worth £L5bn 
in three years’ time, compared 
with Its most recent valuation 
of £935m. 

Jones Lang Wootton, which 
has been advising Stanhope on 
Broadgate, has indicated to 
interested parties that rents, 
excluding concessions, in 
Broadgate’s core City proper- 
ties should reach £50 per sq ft 
within 18 months. This com? 
pares with current estimates of 
around £30 per sq ft, which 
implies an explosion in City 
property prices back to the 
peak levels of 1989/1990, which 
saw average prime rents of £55 
persqft 

Potential bidders were agog 
at the price, and dismissed It 
as an attempt to divert them 
from Stanhope’s weak negotia- 
ting position. Stanhope has to 
restructure its £l60m debt by 
the end of this year, when its 
bank lines come under review. 

Interest has been intensify- 
ing in Stanhope, which had a 
net negative worth of £15 -8m in 
June 1993, but which still con- 
trols a large high quality prop- 
erty portfolio. 

Mr Stuart Upton, Stanhope's 


chief executive, is confident 
that his portfolio will remain 
intact He is keen to arrange a 
restructuring, enabling Stan- 
hope to buy the Rosehaugh 
receiver’s half of Broadgate, 
but analysts dismissed this as 
a pipe dream. It is more likely 
that Stanhope will have to part 
with its own stake in the bold- 
ing company for the Broadgate 
and Ludgate developments. 

The front runner for such a 
purchase is Mr John Ritblat’s 
British Land, winch owns 295 
per cent of Stanhope's shares - 
sufficient to block any finan- 
cial reconstruction under Stan- 
hope's quaintly named “Project 
Phoenix”. 

British Land has made no 
qualms about the fact that its 
only interest is Broadgate. US 
securities houses, Goldman 
Sachs and Morgan Stanley, are 
also known to be interested, 
and there is a fourth bidder 
lined up. 

There has also beat renewed 
interest in Stanhope's debt 
Long-Term Credit Bank has 
found a buyer for £2Qm of debt, 
at a price of around GOp in the 
pound. It is understood that 
Bankers Trust Is the buyer, but 
there may be other sub-partici- 
pants, prepared to gamble on a 
successful restructuring. 

Part of the attraction of Stan- 
hope Is its pre-emption rights 
over Rosehaugh’s Broadgate 
stake. 






/W ilay A ahwood 

A wooden mock-up of the European Future Large Aircraft which wifi, be at the Faraborough Airshow, Hants, starting September 5 


Tunnel bids to include station plans 


By John Authers 


The four private consortia 
bidding to build the Channel 
T unnel Rail link must submit 
plans to build stations at both 
Ebbsfleet in Kent and Stratford 
in east London. Dr Brian 
Mawhmney, the transport sec- 
retary announced yesterday. 

Ebbsfleet will definitely be 
the site for an international 
and domestic station, while a 
decision will be taken later an 
Stratford. Tenderers have been 


asked to submit plans far an 
international and a domestic 
station there. Proposals to 
build a station at Rainham in 
Essex have been abandoned. 

A government decision on 
intermediate stations for the 
link was originally scheduled 
for May, and the project is 
behind schedule. 

The consortia must lodge 
their tenders with the govern- 
ment by March 14 next year. 
These must include the size 
and timing of the support 


required from the government 
- total costs of the project are 
estimated at £2.7bn - and an 
allocation of risk between the 
government and the private 
sector. 

The winning consortium will 
desig n, btlfid, (inamy and oper- 
ate the link through. E u ropean 
Passenger Services, the com- 
pany responsible for Interna- 
tional passenger train services 
using the channel tunnel, and 
take over Union Railways, the 
British Rail company winch 


has developed the link project 
The tour groups invited to 
tender are: Eurorail CTRL 
(BICC, GEC, HSBC Holdings, 
National Westminster Bank, 
Seeboard, Trafalgar House); a 
consortium of Hochtief, Cos- 
tain, Nishimatsu and Siemens; 
London and Continental (Arup, 
Bechtel, Blue Circle, Halcrow, 
National Express, Virgin, War- 
burg): and Union link (AEG, 
W5. Atkins. Hobmann, Mow- 
lam, Spie Batignolles, Taylor 
Woodrow). . . 


Anytime 

any place 


Stena Sealink 
joins ferry ban 
on live animals 


By Deborah Har gr ea ve s 


any share. 


Instant access to UK prices from anywhere in the world. 


Whether you're doing business in Berlin or 
hatching deals in Hong Kong, fT Cityline 
International can link you with real time 
prices from the London Stock Exchange. 

One phone call is all it takes to put you in 
touch with: 


• Over 3,500 share prices 

• Over 10,000 unit trust prices 

• A wide range of financial reports 

• A confidential portfolio facility 

FT Cityline has proved invaluable to business 
people and investors in the UK for years. And 
now it's available from anywhere in the world. 

Just fill in the coupon below or telephone 
+44 71-873 4378. You'll be amazed how little it 
costs to have instant access to this unique 


Stena Sealink became the last 
major fury company to impose 
a ban on the transport of live 
animals on its cross-channel 
rentes yesterday. The ban, 
which comes Into effect today, 
applies to animals which are 
exported tor fattening and sub- 
sequent slaughter in continen- 
tal abattoirs. 

Sealink’s decision followed 
earlier moves by P&O and Brit- 
tany Ferries to stop carrying 
live animals destined for 
slaughter after a high-profile 
public campaign by animal 
welfare groups such as the 
Royal Society for the Preven- 
tion of Cruelty to Animals. 

The Ministry of Agriculture 
Is trying to work out an accept- 
able code of practice with the 
ferry companies, livestock 
exporters and welfare groups. 
Stena said that until a code of 
practice is adopted, its ban will 
remain in place. 

But Mr Roger Gale, the Con- 
servative MP and chairman of 
the House of Commons all- 
party animal welfare group, 
called yesterday for a cessation 


to the transport of live animal a 
throughout ami from the Euro- 
pean Community. 

Mr Gale said: "It Is abun- 
dantly plain that mainland 
European authorities are quite 
simply not Interested in enforc- 
ing transport regulations.*’ 

Welfare groups are pushing 
for an improvement in condi- 
tions for animals in transit, 
including a reduction in the 24- 
hour time limit during which 
they can travel without food or 
water. However, European 
Union governments have 
difficulty in agreeing on 
changes to existing regula- 
tions. 

SeaHnk carried around 10 per 
cent of the live animals 
exported compared with 60 per 
cent for P&O and 10 per cent 
for Brittany Ferries. 

The National Fanners Union 
said producers were very con- 
cerned about the lucrative 
export market being cut off by 
the action of the ferry compa- 
nies. 

Exports of live sheep and 
calves are worth about £X60m a 
year to the industry and busi- 
ness has been growing. 


Britain in brief 


BT also announced a range of 
improved discount schemes for 
high-usage customers. Small 
businesses with, quarterly call bills of 
£50 or more are the main gainers. 

Mr Michael Hepher, BTs managing 
director, said the price cuts “were 
made possible by BT’s £20bn 
investment in modernising the UK 
telephone network over the past 10 
years”. 

The Telecommunications Users 
Association welcomed BT’s price cuts, 
and the sim plificati on of the tariff 
structure. “It will enable customers to 
more easily understand call costs." 
said Mr Bill Migran , its chairman- 


Airline 
staff vote 
to strike 


Doubt over 
Swans workers 


A core workforce at Swan 
Hunter would have to be laid 
off rather than made 
redundant, and to fo rfait 
entitlement to lay-off payments 
as a condition of continued 
-employment, the French 
company wishing to buy the 
Tyneside shipbuilder said 
yesterday. 

The affected workers, who 
radar this proposal would not 
be made redundant in 
November when Swans last 
frigate is handed over, would 
then have to wait on lay-off to 
be called to wort as required 
by its new owner, claiming 
state benefits when not 
receiving wages. Under the 
present company scheme, they 
are entitled to 68% erf their 
earnings if laid oil 

Mr Fred Henderson, who bas 
led negotiations for SoffiaJ 
Constructions M&caxriques de 
Normandie on its proposed ' 
purchase of Swan Hunter, 
which is in receivership, said. 
CMN would take on the legal 
obligation to pay the 
employees their redundancy, 
should tiny later not be 
needed. 


Rise in value 
of farmland 


The average value of . 
agricultural land in the CK 
rose by 21 per cent In the year 
to the end of June, according 
to a farmland valuation 
compiled by Savfils, the land 
surveyors. 

The improvement in British 
farm incomes following the 
devaluation of stating against 
other European currencies has 
contributed to the land boom, 
the company said. 

Land values increased most 
in regions where largo arable 


holding* are predominant as 
these farmers have benefited 
most from the upturn. Rises in 

hill land value were lowest at 

10 pm* cent Farmland values 
increased by 12 per cart in the 
first 6 months of the year. 


N Sea licences 
‘fast-tracked 9 


Cabin crew at Britannia 
Airways, the UK’s second 
largest airline have voted to 
take strike action in support 
of their annual pay claim. 

The 900 mambas of the 
British Airlines Stewards and 
Stewardesses Association - 
part of the Transport and 
General Workers Union - 
voted 2-1 in. favour ofstrike 
action. Some 87% of the 700 
. who voted, supported the 
strike, said the ration. 

The union had rejected a pay 
offer of three per cent on basic 
pay with an extra two per cent 
unconsolidated lump sum 
payment. 

Britannia management have 
agreed to talks with the union 
today In the presence of 
members of the Advisory 
flnnriliatimi and Arbitration 

Sendee. 

In the meantime Britannia, 
in volume terms the biggest 
charter airline the world and a 
subsidiary of Thomson's 
Group, the holiday company, 
is tr :ining volunteers from 
other parts of the group. 

The airiine said it had 
secured more than the 400 
volunteers It needed to replace 
striking cabin staff if they 
took action. Some 900 of the 
airline’s 1,460 cabin crew 
bekmg to the radon. The 
replacement staff are 
undergoing a four-day safety 
and emergency procedures 
course that will allow them to 
gain Civil Aviation Authority 
certification. 

Britannia said it was 
confident that it could run a 
complete service with skeleton 
crews If a strike went ahead. 


The British government 
yesterday announced the 
completion c£ the 15th North. 
Sea oil and gas licensing 
round, the first to be 
conducted under a “fast track” 
approach to ensure early 
exploration, of the blocks on 
offer. 

Mr Tim Eggar, energy and 
industry minister, said many 
of the successful bidders had 
agreed to accelerate their 
seismic surveys and 
exploration drilhng to ensure 
any discoveries could be tied 
into the existing North Sea 
transportation infrastructure. 

The six-year licences cover 
29 of the 81 blocks offered last - 
April. They are concentrated in 
the southern basin, a mainly 
gas area, and the central North 
Sea, Both are established ' 
production areas with 
extensive pipeline networks. 

Amoco UK, the British arm 
of the US oil company, and 
British Gas were among the 
successful bidders. But Mr 
Eggar said he was pleased that 
a n umb er gmalTtw Mwipintoii 
also secured licences. 

Nominations for the 16th 
licensing round are being 
considered, with an 
announcement of blocks to be 
offered expected in the 
autumn, Mr Eggar said. 


‘Reasonable’ 
job laws urged 


Harmonisation of employment 
laws In the European Union 


leader in France, stressed that 
it was important to respect 
national tflveraity. He also 
warned that unions had often 
failed to stay in touch with 
their members’ aspirations 
and needed to restrain wage 
demands. 


Power company 
to build station 


Scottish Hydro-Electric, the 
electricity company, is to 
strengthen its push into the 
Tfai gHah and Welsh power 
markets by building a 47MW 
combined beat ami power 
station in Runcorn, Cheshire. 

The plant, which will supply 
electricity and steam for Salt 
Union, part or the Harris 
flh«m foals Group, will be 
owned and operated by Hydro. 

Surplus electricity will be 
sold to Hydro’s existing 
customers through the local 
distribution system. 

Sal t Union is Hydro’s third 
CHP plant In England. The. 
first was a9MW joint venture 
with Aijo Wiggins in Dover, 
Kent, the second a 157MW joint 
venture with BNFL at 
Sellafield, Cumbria. , 

Hydro is also In the final 
Stages of ra mwiiflgfaning * a 
680MW combined cycle gas 
station in Keadby, 

Humberside, with Narweb as . 
partner. When all of these 

projects are commissioned next 
year, about a third of Hydro’s 
production will be available to 
supply customers in England 
and Wales. 


' m'-w 1 '' . • - - 

i!> v v : 






•, IT '* •“ . 




>*■.* r~ , •: 






-"i - r -i - 

I'i-" * " . . . , 


V. 

•CS**"' 





- * »_■■■'. ’ 

. ( # 


f,st 


rfst- S/S'.fS" 1 ' * J ' 


must “remain within 

aim 1 :; « 

reasonable limits”, Mr Jacques 

ini it • 

Delors said in London 


yesterday. 


Mr Delors, retiring president 


of the European Commission, 


said at a Trades Union 

c?±wv- 

Congress meeting that 

- ■: 

EU-kvel rights must not 

'- 

become an obstacle for less 

v : ’ . 

developed countries. 

eLa-ri 

He struck a more cautions 

a -. 

note about the European social 

f* .■ 

dimension than when he spoke 

ae-i»u: : 

to the TUC Congress in 1988 

flff'r'j.-i.v 

and helped convert the British 


labour movement to a 

messy; -T .V 

proEuropean stance. 



to prttrtj,' 

■dtolh-i*. 1 *" R ‘*TR..y * • 
!>•'' ~ ‘ ’ 


1 








Further growth in manufacturing 


service. 


By QRBan Tett, 
Econo mi cs Staff 


ManafiiA iriBg expa n sion tfawi as price p r w mni. tncneaa 



FURTHER INFORMATION 


Please send me deoils oT FT Qtytine International. 
Name 


Organisation 

Address 


PbstCode 


FTOtjHme International, 

Number One Sootbwaik Bridge, London SEI 9HL. 


The UK manufacturing sector 
continued to expand last 
month, but this rapid growth 
may be creating supply bottle- 
necks and pushing up prices in 
some sectors, a business sur- 
vey yesterday suffiested. 

The survey of UK purchasing 
managers, published by the 
Chartered Institute of Purchas- 
ing and Supply, showed that 
the price index rose to a sea- 
sonally adjusted 73.7 per emit 
last month, up from 73.2 per 
cent in July. 

This was the highest level 
since the index started In 1991, 
indicating that a rising number 
of manufacturers are reporting 
price increases, the CEPS said. 

Purchasing managers in the 
plastics, paper and steel sec- 
tors had seen particularly sig- 
nificant price rises, with over 
two thirds of respondents in 
the chemical, rubber and plas- 
tics industries reporting 
increased costs, the CIPS said. 


Prtpa of purcfaaaea fcotume wei ghted)* ~ 





55 : 



u 


; ‘ 1 t H • •- 

• I 


v" '""vi 


m rasa ;T ^ v . - isos _ ~ 




Although rising commodity 
prices accounted for part of 
this stage, growing demand 
was also pushing up prices, the 
CUPS added. 

In another fr onri Swf may 

also point to capacity con- 
straints in some sectors, sup- 
pliers' delivery times were also 
reported to be growing. The 


suppliers’ deliveries tiny* Index 
fell to 3fiB per cent last month, 
the lowest rate fa its three-year 
history. 

Meanwhile, the overall PMI 
index, compiled from the sepa- 
rate figures on output, orders, 
purchases, delivery times, 
stocks and employment, foil to 
59.6 per cent In August, .com- 


pared to 624 per emit in July. 

Any reading above 50 per 
cent indicates an Increase in 
activity compared to the previ- 
ous month so the index sug- 
gests that manufacturing activ- 
ity .was continuing to expand 
last month, despite the slight 
redaction in pace, the CIPS 
said- 


s':- 


fe;. 


" -'‘Si. 



FINANCIAL TIMES THURSDAY SEPTEMBER I 1994 


II 


TF.r.HivroT nr:v 



Information is an asset that must 
be guarded, says Michael Dempsey 

Dangers of 
data overload 


W ith a computer on every 
dtttt, information now 
noire freely in most 
commercial organisations. But 
according to Robert Hawley, 
chair man of Nuclear Electric, the 
state-owned UK nuclear power 
generator, that very access to 
data is proving counter- 
productive. 

Companies are being saturated 
with data. Hawley is one of a 
growing band of industrialists 
who have recognised, the need to 
control information before H can 
be properly exploited. 

Since last October, Hawley has 
chaired meetings of the Hawley 
Committee. Taking its cue from 
the Cadbury Report on corporate 
governance, this body is dedicated 
to producing practical guidelines 
for board members when tiftaihig 
with information systems. 

Hawley’s fellow committee 
members in elude leading figures 
from Smiths Industries, the 
aerospace and defence group, the 
Cooperative Bmlt, toe Inland 
Revome and the Ministry of 
Defence. This working party is 
complemented by KPMG, the 
management consultancy . It has 


been assigned the vital leg-work 
of trawling through British 
industry to establish data on the 
management of information. The 
main finding of the comm i ttee so 
for is that the saturation of 
information in business is 
undermining its value. Staff stall 
levels are overwhelmed with 
computerised data. 

"In oar attempts to make sure 
everybody is informed we’re 
over-informing," says Hawley. 

One way to tackle this problem 
Is to limit access to IT systems. 
This might appear to fly in the 
face of the received wisdom of the 
1980s that more databases meant 
better business. Hawley thinks 
otherwise, and has embarked on 
an ambitious programme to 
rationalise information in bis 
own backyard. 

A Nuclear Electric working 
group is trying to establish just 
who needs what information. It is 
currently preparing for 
privatisation, so any move that 
trims an annual IT budget cf 
£35m and also ties into 


management concerns about 
unlimited access to information is 
timely. 

The executive Information 
system blinking from the 
terminal on Hawley’s desk Is 
updated with mar ket data, the 
organisation’s daily operations 
and the state of play at 15 nuclear 
power plants. But it can only be 
used by 10Q staff. 

"Wh en I came on board, 
everybody wanted it. The popular 
sentiment was in expand 

system by 100 staff at a time. But 
we run the business with ttais 
information. It’s one hen of an 
asset and now we’re protecting 
it” 

According to Hawley, not 
enough executives view 
information as a vital ami risky 
asset even though "the board is 
ultimately responsible for illegal 
use of data”. A deluge of publicity 
surrounded toe recent British 
Airways* c our troom admissi on 
that staff effected illegal access to 
Virgin Airlines* booking data. But 
this case does not appear to have 
raised the profile of information 
as a critical asset to be guarded. 

Hawley is keenly aware that a 
report of the committee's findings 
will only be as good a s the 
response ft generates. Win 
industry take the conclusions on 
board? Hawley hopes it will and 
intends to distil the committee’s 
conclusions into a painless read. 

“We’re not going to produce a 
tome. There wfll be a single page 
containing short and simple 
guidelines. That should spark 
enough interest to get board 
members reading a more detailed 
document listing our findings.” 

Hawley Is convinced that this is 
too important an issue to gather 
dost “We’re not studying the 
mismanagement of IT,” says 
Hawley. “We are saying that 
Information is an asset main 
board directors are consistently 
foiling to recognise.” 

He says boards are not yet 
asking whether they are getting 
the right information. “Ihey can 
easily talk about toe bicycle died 
question - which big computer 
system to install. But they miss 
toe whole issue of management of 
information.” 


T he government of Hong 

Kong this summer lwamp 

the first outside Japan to 
opt for Japan’s Personal 
Handy Plume System. Hong Kong’s 
decision to go ahead with PHS 
instead of rival systems even pre- 
cedes Japan’s fo rmal adoption of its 
own systm. 

No t tha t there are any doubts 
that PHS - the latest attempt to 
provide wireless personal communi- 
cations at costs low enough for 
most people in developed nations - 
will begin operations in Japan early 
next year. Most Japanese consumer 
electronics manufacturers (includ- 
ing Toshiba, Sanyo, Casio, Mitsubi- 
shi, Nippandenso, Aiwa, JVC, Ken- 
wood and Sony) have produced 
telephones for the ne w sys tem and 
Matsushita has had a PHS-compati- 
ble cordless phone on the market 
since ApriL 

Japan’s government is developing 
a proposal which, if a ccept ed by its 
neighbours, will make PHS toe pan- 
Asian standard for wireless coaxmm- 

niwHnnB 

It would be hard to come up with 
an example of a product that has 
generated so mn^h enthusiasm 
national commitment SO far ahnwrl 
of official approval, let alone market 
acceptance. PHS may just turn out 
to be the “killer product'’ that 
Japan's fti ffi-toftmriifff y industries 
need to disperse the clouds over the 
Japanese economy since the boom 
of the late 1980s. 

The roots of the PHS concept can 
be traced back to the first confiess 
telephones of the 1970s. Dubbed 
C7TL, these early attempts to cut the 
cord were limited to a range ctf only 
a few yards. But the second genera- 
tion CT2 technology gave cordless 
telephone users a wider range of 
several hundred feet PHS alms to 
break the constraints and allow 
users to roam anywhere within a 
few hundred feet of cell stations 
installed and operated by service 
providers. 

There have been previous 
attempts to achieve that goal, 
including the Telepoint system tried 
with little success in the UK and 
Hong Kong and the Digital Euro- 
pean Cordless Telecommunications 
(DECT) system. 

Hong Kong's geography is partic- 
ularly well suited to PHS technol- 
ogy, which is based on much 
smaller cells than er f sting reTlnlar 
telephone systems. Countries such 
as the US or Australia have large 
areas that must either be covered 
with large numbers of unprofitable 
cell stations or left as holes in the 
system. 

The small area of Hong Kong, on 
the other hand, requires a relatively 
small number of cells for complete 
coverage. Japan is aiming for only 
50 per emit coverage of its popula- 
tion in the first five years of the 
PHS service. 

When used near its base station, a 



Nippon Motorola ia one of dozens of comp a ntea interested hi promoting PHS 


Cutting 
the cord 


Japan’s handy phone system may 
become the pan-Asian standard, 
writes Robert Patton 


personal bandy phone functions as 
a cordless telephone and is billed as 
if it were any other home or office 
telephone. Out of range, however, 
the handy phone switches to the 
nearest cell station. Uke a cellular 
phone, it <sm originate or receive 
calls as long as it remains within 
range of a cell station, but it cannot 
be used in cars and other fast-mov- 
ing vehicles. 

In return fin- that shortcoming, it 
enjoys two important benefits. The 
first is drastically reduced cost: 
calls can be made and received at 
about a third the cost of cellular 
services. That fact alone has led to 
projections that 90 per cent of the 
population of developed countries 
would subscribe to the system. 

The second benefit is a very wide 
usable bandwidth. Unlike cellular 
phones, which use much of their 
available bandwidth to provide the 


fast ceU-to-cell switching required 
for communication from moving 
vehicles, PHS has sufficient band- 
width for m ultimedia me. Accord- 
ing to Sachin Semmoto, co-founder 
of the DDI telecommu nicat ions 
company and a pioneer of PHS, the 
personal handy phone opens the 
door for small operators to compete 
with telephone and cable television 
companies that have wired infra- 
structures in place. 

This month, a Tokyo cable opera- 
tor will launch the first tests of PHS 
for wireless multimedia applica- 
tions. Fifteen ground stations will 
be built for the test, connected to 
the Tokyu Cable Television network 
and then tied to the switchers of the 
Tokyo Telecommunication Net- 
work. Other Tokyo-based companies 
involved in the project include Mit- 
subishi, Mitsui, Tokyo Electric 
Power and Tokyo. 


The ability of PHS to transmit 
multimedia data is especially Impor- 
tant to many areas in China and 
south-east Asia that Lack a copper 
telecommunications infrastructure, 
let alone the “fibre to the home” 
that technologically advanced 
nations are talking about. PHS 
offers the potential of moving into 
the multimedia age using wireless 
technology. 

But there have been some false 
starts. Hong Kong had an earlier, 
unsatisfactory experience with the 
Telepoint system and its CT2 tech- 
nology. 

The Hong Kong telecommunica- 
tions authority chose PHS over 

DECT and the American B-CDMA 
systems. The decision was largely 
based on the results of Japanese 
field trials that have been under 
way in Sapporo and Tokyo since 
last autumn. 

The Tokyo trials will finish at the 
end of September, but in Sapporo 
98.7 per cent of male non-business 
users said they wanted to use a 
handy phone as soon as commercial 
service begins. Female non-business 
users were only slightly less enthu- 
siastic at 97.5 per cent 

Hong Kong decided tax PHS after 
the Japanese Systran was promoted 
by Japan's Ministry of Posts and 
Telecommunications (MPT) and a 
consortium of 28 companies includ- 
ing Nippon Telegraph and Tele- 
phone, DDI, Kokusal Denshin 
Denwa, NEC, Nippon Motorola and 
Sweden's Ericsson. 

Hong Kong, which has already 
asked MPT for technical assistance 
in introducing the system, will be 
able to accommodate approximately 
6m subscribers within its confined 
geographical area by allocating the 
same 1^95-1,918.1 MHz band that 
Japan will use fix: its system. Other 
technical issues such as voice trans- 
mission. speed and switch specifica- 
tions have yet to be decided. 

Licences will be awarded to tele- 
communications carriers in the first 
quarter of 1966 and the Hong Kong 
service is expected to begin by late 
summer or early aut umn. MPT 
hopes that Hong Kong will be the 
first of many Asian governments to 
adopt PHS. 

At the and of August, the minis- 
try set up a task force to promote 
the acceptance of a single wireless 
communications standard through- 
out Asia. Called the Office of Multi- 
media Mobile Communications Pro- 
motion. the task force will begin by 
establishing a multimedia mobile 
communications study group to 
evaluate the feasibility of establish- 
ing PHS as that standard. 

The ministry’s goal is to promote 
the development of a multimedia 
information infrastructure for Asia. 
Wireless technology is essential 
because most Asian countries are 
not expected to create a “hard- 
wired” infrastructure until well into 
the next century at the earliest 


Coffee 

and 

genes 

A fter the non-sqnashy 
tomato and the 
slow-ripening banana, the 
latest product to catch the 
imagination of gpnwHc engineers 
is the decaffeinated coffee bean. 

This month, ESCAgeoetks 
Corporation, a Californian 
biotechnology company based in 
San Carlos, was granted a 
patent cove rin g a process for 
genetically modifying coffee 
cells. The company is now 
looking for a collaborator to 
help exploit the process. 

That process involves 
inserting a gene from a wild 
strain of coffee that produces 
low levels of caffeine into coffee 
cells grown in culture. The same 
process could be used to produce 
coffee plants with better yields 
and increased pest resistance. 

The developers hope the use of 
genetic engineering will be a 
breakthrough in the hitherto 
largely frustrating quest to 
produce naturally decaffeinated 
coffee. Attempts to breed 
decaffeinated coffee plants are 
complicated because coffee cells 
have four sets of chromosomes, 
malring thorn difficult to 
manipulate. 

The success of ESCAgenetics’s 
process in producing 
decaffeinated coffee plants is so 
for unproven, and putting the 
process to the test will be 
lengthy. It will take a year from 
the initial gene-splicing 
experiment to produce the first 
seedlings, after which it will 
take three to five years to 
produce the first crap. 

The company believes that 
decaffeinated coffee produced by 
its process is likely to be 
cheaper than mi s t i n g methods 
of decaffefnating coffee. It also 
hopes that consumers would 
prefer its process because of 
concern about chemical solvents 
which are sometimes used to 
remove caffeine from ordinary 
coffee. 

If the process proves 
successful, it could potentially 
open up a large market. 
Decaffeinated coffee accounts 
for around a third of the coffee 
market In health-conscious 
countries snch as the US. 

Vanessa Houlder 


FT 


FINANCIAL l IMIS 

( A>i/i Vi'Jm 


INTERNATIONAL BANKING 


29 & 30 September 1994 - Madrid 

Timed to precede the annual meetings of the International Monetary Fond and the 
World Bank, the conference will provide a high-level forum to debate key issues 
facing the international banking community, 

SUBJECTS INCLUDE: 

• Future for international banking 

• Banking in Europe - strategies for expansion 
- European banking privatisation 

• Implications of a single European currency 

• Current concerns in supervising the banking industry 

• Do derivatives pose a major risk to the international banking system? 

SPEAKERS INCLUDE: 

Mr Emilio Botin Rios 
Chairman of the Board 
Banco Santander 


Dr Josef Ackermann 
President of the Executive Board 
Credit Suisse 
Mr Richard J Boyle 
Vice Chairman 

The Chase Manhattan Bank, NA 


Dr H Onno Ruding 
Vice C hairman 
Citicorp and Citibank, NA 

Mr Egidio Giuseppe Bruno 
Deputy Chairman 
Credito Italiano SpA 

Lord Alexander of Weedon QC 
Chairman 

National Westminster Bank pic 


FINANCIAL TIMES CONFERENCES 
in association with FT Magazine THE BANKER 

and 


For more information about marketing opportunities, please contact Lynette Northey on 071 814 9770 


FT INTERNATIONAL BANKING 

Please tick relevant boxes: 

O Please send me details about the conference 

□ Rcise .icnd me details about business opportunities 

□ Please send me dmils about The Banker’ 

_ -f vraunoi VOW ptovtde «•« be b*M ® *“*P ** 
malm* pwpm**- 


Please complete and return to: Financial Times Conferences. 
PO BOX 3651, London SW12 8PH. 

Tel: 08) 673 9000 Fax: 081 673 1335. 


Name Mn'Mrs/Miss/Ms/Ofber 

Job Title ™,.DepL, 

Company Naine..^. 

Address — — 


-PosrCode 


Td. 


-Fax 


-HN 


GREEK EXPORTS S.A. 

FOUNDER AND SHAREHOLDER: E.T.ELA. SA 

ANNOUNCEMENT OF A REPEAT PUBUC AUCTION FOR THE SALE OF THE ASSETS OF 
PIRA1KNPATRAIK1 COTTON MFG. CO. SA. NOW UNDER SPECIAL LIQUIDATION 

GREBL EXPORTS SA, bared hi Albans 07 P a»ptot lr*3u Sbscti and tagaSy raprarertted. in tta capacRy m Uqubtetor, faaowtog doctotanNa.78lS/i99CoHhe Asians Court otAppaalm) 
among hi article «a of Iw 188&1M0 aa supplemented by arid* H of Law 200W1M1 and caredamsraed by article S3 of Law 2234/94, and tottmtog inamctlDiisiMBd 11/7/94from»w 
Industrial Reconstruction Or gfl ntatdfcxi (being the essential creator at Ore aempe nfes of the PffUUKl-PATOMfa Group and uneuthorisad to make afl relevant docMana In ao m d sn ee wtti 
article 22 Of Law 2188/1994). 

ANNOUNCES 

a repeal towmationalputate auction wBi seated. bbsting oBare tor the eate. elm of the total ea s e ls » a whole or ol aep»aie operational antitfea and of nen-operattonal cfe t n art a of Bw 
ascot*, as Mad belMc of the PKAUC-PATRAIKf COTTON MANUFACTUFBNQ COMPANY SA, hosed In Athens, el S Dragatsantau Street, no* under ^rectal Rqubfedon and referred to 
hereinafter as Company*. 

The separate opoeMonal arenas and ate non-opereflonal elements far whldt sepenta offers be oubmRfed are; 

a) note o( land wflh lhair bufldtogs and mechanical equtomare (where auch aM), as described In decat In Die ratorert ottering memor a ndum id toe above-mentioned company now under 
BgrtMdan infer toe heetitogeD. 2.1 and Q2-Z. as a whole or separately. 

b) Urtian I mm or al** In Pafcae. aa deaertmd In (fetal In the ralaiianl offnttog memora n da!! o> the above-mentioned company now under IquMadon under Die heeding DJL3, a» a whole or 
sapandely- 

c) Stock-to-hand ot toa abowmandonod company now taidar Bqufdafcn In Die PffMMhPATRAM PATRAS spinning AND WEAVING MILS SA, ee described in dead In Die odartig 
memaandtsn under the haadbtg CL3.1 A. as a whole. 

dl {tock-tn-hend al me above-mentioned company now imdsr BquicfeSon to me warehouses to Alheos, ThoaaeBnK. ate (except for Dio slock to Via Paras complex as mentioned above), as 
described to (feted bi the offering memorendun infer the horfnfl 03.1 A as a whole. The trade media oh 1) MOUTALASKJ A1S00. 2) MOUTALASK1 A 1200. 3) PICTURE Of BULL 
(MOUTALASKI), a) PICTWE Of BULL (MOUTALASKI). as described ki toa oflerktg memorandum infertile heating D.2. 7., os a whole. 

ACTIVITY AND BIOS* DESCRIPTION OF THE COMPANY 

The PtfWKVPATRAiKt COTTON MAffiJFWJtVRJNQ COMPANY SJV baaed in Athena, has the tergwa Unrowr to Greece In toe *f*r«tog and ureevlng Held, buying and eWBng lor acccutt o) 
the rest of thacompanfee of the fanner PIRMM-RATRAM Grata). R has been on D» maritaC far many years and owns a modem bidkflns oompla* tor warehousing and tflsefwUon. lure ta the 
Varibobi area ot Atlca, rawed aa a warehouse cocnptax In Asprapyigoe. Afflca 

TOWS OF THE ANNOUNCEMENT 

1. Parties interes te d In taUnp pari In the auction are kwtad to rocetai bom the UqUkfelnr the Offering Memore n cfem aid tire draft Letter ot Guarantee h order lo edbmk a wdad. htaeang 
Oder to the Athana notary public nyntnmri to the peddle auction. Ur DknRrios C. Dmtnaot. £2 AkadMa* Street (lit Soot). Athens. teL *00-1-363-5520 up to 1900 hours on 
Wednesday 2iat September 1994. 

The oner mud be admired In person or by a legaly aoOntead representative. 08m submitted aBer *» time IM1 has embed wl red be accepted or considered. 

2. The offer* wH be unasalsrt baton the Mwowndo n ad notary at 1000 horn on TTaavday 22 nd Saptomner IBM wttii •» Liquidator In a fe n nd e nc o . Parsons wno have subirOtad 
bids wlttin the preaotoed time RmO may atoo anantL 

3. The sealed, touting otters must cleariy sBto» wtiaDier Dwy refer lo tha total assets cr ttw aaparale opandtonst et e m enn o< the asaew o< the correany under a tu daflon, the oDared price and 
method of payment (caahorcracB,tha manbar of kHURmanis. Die tbna period owr which Die payments are (o be made at a (bead Merest rale. In the event Dim there Is no mormon or a) 
the metiiod M papnare. ti) whaDier k*Btm nio be chaigad gnd 4 the Merest waa. R «■ be tosumad raspadfeMy tim a) fee amount la to ba paid In creti, by the WettOments vril not be 
subject to Interest 0 the intareal on the liiaiabnanta Is to bs csfcaAted accenting to the oflerad Merest rate on amud State bonds at the Bma ol siixnteston. 

4. Offera shah be noM and weld t rela a a a eo o mp e ntotl by a fetter of guawreaa tram a bar* lagaBy opewttog In Greece. The fetter wf pa vaBd until the algntofl o* B» contract aid 



e) 7.000.000 
t)2.000J300 
bn the mt of an of an 
Gl Ttsa Company's assets anti al Acad 



Vie warehousing end tiitribiiion centre a locafed. Its bUMsHP, mechanical aqiipmem and means of b anep oft. 
derailed in the oSering mamonmdmi under Dia headtog 02.1. and DJL2. 

Otan one ol Bib Mxnb Roms. Iho tetter of guerantaa should bo to an amount equal to ttta total of the amowtis Ml tor each Rem. 

that compromise Owm fenmcMblee. movMitoa, cMme. rights ate. on to ba add and transferred as Is and where Is, and, more 
«n Die ifeto on wMch Die sale oonbact is signed, regnrdere of whether Die Confeany Is operaOng or not aabm at each company 
andarenottaratorabtoL 


1 as bi fence). sU bear no Datoby for ary legal 
morandum and In any com wp ondancs. In 


i mdtfBieir awn expanse, to inspect the outset of 
i tor safe. The Buyers are hereby rentoded ttu. in 
are enMled u hem access to any infermation they 


i possible Job poabtons and tiw businaa* 


1 31% at flia total dabis against the 
r to tfre parfloSare of Dta affects lor wWo cr rtgtto, nor lhair 
toe event cti biconaimncies, entries to Bw Compan/s boohs, as thsy stand on tiw data of signature of Ihe safe 

7. PnapecDve butm haratngter referred k> as Buyers. «hal beoblifed, on tifebowi raepOMtoBy and due care, and by toefroun 
the safe and torn lhair own Judgement and declare In JhaR tola Bed toey are July aware of the 
accordance wfth toe prmMone el Law 18B2M, artide 48a, para. 4 as to lorca, haring agreed In 
may require concamtog toe Company (or safe. 

& The ewsmiBlcrtBrfe lor ewskiatingtneoirsfs by ftaLkji*taar.amor)flothart.shaIbfl toe amourti of tiw ottered prica. the as3uninca of aa many 
plan* of praspacWe buyere. 

9. Otters mud not contain ferm* upon wMdt theb Mn dtr cnee s may depend or ba wgue «rih ragud to the helgM of the amount offered or to method Of payment or to any other enamel 
matter affecting toe stow. Liquidator end the Credtor hawa toe tlgH, al toaff tacorarnwatible dbcreBon. to refect tfta* which contain l«imarriefeuBaa,<egBraa»riwtiMhc(atoy are 

hlgiwr dan ether oBera. 

itJJn the awant that tho pajment is ao ba rada on eredft, the preosm veto of the assets wt bo taken bto acooure. 

1 1 Jn ortar to secure too cratO. the buyer uril prerida the Uqultfstor, on the data of sftrriure of die aalaa contract a tadar of guarantee bom a bar* tagaly operating to Greece, representing 
am ol Dm amount on aedt and the infereat thereon, wMa the brience of Die amount on credR «fl be secured by a nuBBcahon douse and a Sim iresrtgag*. 

t2Any changes that may occur to toe toodrin-hand urtti ihe safes catnd Is sttpriO »■ mocOy toe catac price acconangtST thaRaatimatfen ml be made an the beds of ftead prindptosof 

stock pricing. For W» raaaan, olere mure dtsee which p«t of toe total sales price refers to the wiuo of me mefe-to-hand. 

tlTho Nghast bidder la the one whose otfer ms auahatad by ton Uqukfetor and )jdgsd by the Creek* at betog ttio most aritrisetonr. 

M Jn the awart that the party m whom lha assets lor sria haw been adfudbrisd fete to his aaBoation to appear and sign toe refefem oontrao wttoin twBrty (20) days ol tWng mritad b do ao 
by the UqukMor. and abkfe by toe oMpflone eoreatoed to the present Srtneuneamert. hen Ihe aoiouni of the guarantoa stated move Is tortebad to the Lfeukfetor to cower expenses id afl 
ktods, time spent and any real or paper fees suffered by htoiaaif and fay the cmOore wfch no ablgmon an Ns part to prerida aridenca of such lose or consider that the amount has bean 

except Die Idghaa bidder, «■ ba returned to them ImmetfaWy offer toe eqjudicatoin of tho auction which occurs wRh db 

participants to ne suetkm, both wih regard to tie drefitng of the ewduetion report on the bids or a hit proposal of the NgNm 
ton to paittdparu in lha auction In the awl ol a eancflfcdton cr raWfeatiton of toe auesen tor any came cti rwsson aMboavar. 

do n« eequtaa any light and can make no demand or daht on lha strength ol Ms amounceman or ol that partefeefien, agotofl me 

17. The buyer of tha dsi w to of fee areata of RHAnOPATRAM COTTON MANUFACTUraNG 00. done not hare the right, after et^isture ol the safe* corfcacL to use to any way the 
PfRAM-PATRARO iHBito nor Bw bade nterte u nder wWoi the Gratert products ore sold. 

13-Tlte transfer aip er u tea ol the aseris far sale (tares. VAT ttoregre on tho wriue cf Die mmotaes. stamp duty, notary teas and mertgegor tore, rights and other expenses tor drawing up 
topographical tfagreme as por Law osyi 977. eto) w* ba tame by ihe burei. n is to be noted Dm nidi regard to ate nen-operattmeiatamarea of the assets, tin emntptions mentioned to 
pare. <3 ri article 14 of Law aoopBi and to sixo i dai - uu wiei pom. i laid artida-ten of Law imaWMs uitofa iixwto W fay arthtia 53 ol Law 2ZBW do not apply. 

F^ritopettan h Dm audton totpln eccaptonca of tha tsm of tna presenl arewuncscnenL 

For further brionnerifon. I nterested parties am apply to the heed offlee of the L iquidator company, MEEK EXPOftTS SA, in Athens at 17 PsneptsUmtau Sbaet, 1st Floor. 

TaL +30-1-3243111-115. 




12 


FINANCIAL TIMES THURSDAY SEPTEMBER 1 1994 


MANAGEMENT: MARKETING AND ADVERTISING 


Alan Cane on a Japanese printer campaign in which 

environmental concerns have lost out to cost 

Putting price before 
conscience 


K azoo Inamoii, founder and 
chairman of Kyocera, the 
Japanese high-technology 
ceramics company, is an Iconoclast 
with, a reputation for promoting 
tomorrow’s orthodoxy today. 

This year, however, he has been 
forced to abandon advertising 
based on the environmentally 
sound qualities of Kyocera printers 
in favour of a punchier, cost of 
ownership ««np»ign “Green" is 
not yet the colour of the month for 
hard-headed office equipment 
buyers, it seems. 

Inamori’s far sightedness is 
legendary. A decade ago, he was 
the first to exploit the ending of 
Nippon Telegraph and Telephone's 
telecommunications monopoly, 
setting up a carrier which has 
become the leader among Japan’s 
new public telecommunications 
operators. 

He has overseen Kyocera’s 


It faces fierce market 
challenges, including 
overcoming the 
power of a 
successful brand 


diversification from its base in 
semiconductor casings into 
computer games, cameras and, 
more recently, page printers. 

These are relatively inexpensive 
machines, typically costing around 
£l£00, designed for use with 
personal computers. They offer a 
combination of high print quality 
and economic operation and have 
become the workhorse of today’s 
networked data processing. 

The page printer market is 
dominated by Hewlett-Packard, the 
US electronics giant Its LaserJet 
machines command a 60 per cent 
market share, leaving a handful of 
competitors, among them Canon, 
Kyocera and OM, scrambling for 
the rest. 

Kyocera has been looking to 
raise its world-wide market share 
from about 6 per cent at present to 
around IS per cent. Today it 
competes only In the market for 
machines, printing at least 10 


pages a minute. Later this year it 


will introduce a four-page-a-minute 
model which it hopes will double 
its market share. 

In seeking to expand further, 
however, it faces fierce marketing 
Challen g es , among Hrpm 
overcoming the power of a 
spectacularly successful brand. HP 
sets the pace in the computer 
industry. It is a byword for quality 
electronics and the name is 
essentially synonymous with Laser 
printers. Customers ask for HP 
printers without going into the 
competitive differences between 
machines. And dealers, selling a 
commodity product with a 
low-profit margin, find little 
incentive to promote other makers' 
offerings. It is, according to Philip 
Murphy, general ma nager of 
Kyocera Electronics (UK), a 
“self-perpetuating connivance" 
which works to the disadvantage 
of HP's competitors. 

Printer technology, furthermore, 
is not intrinsically exciting to 
customers looking only for 
convenience and reliability. HP’s 
machines are powered by laser 
technology licensed from Canon of 
Japan. Kyocera has a competitive 
technology which uses light 
emitting diodes. Both technologies 
involve “writing” on a rotating 
drum which, in turn, transfers 
electric charge to paper to attract 
toner in the shape of the 
characters to be printed. 

Kyocera’s “green" campaig n, 
launched last November at a 
worldwide cost of about ESm, 
exploited the fact that the laser 

printer d nim merhanism - the 

cartridge - is designed for 
disposal. When the toner runs out, 
the cartridge must be replaced 
There is a saving on maintenance 
costs at the expense of the price of 
a new cartridge. 

Manufacturers of laser printers 
receive a steady income from the 
sale of these consumables. And the 
cartridge has to be disposed of 
Kyocera says that by the end of 
1994, laser printers will have used 
300m cartridges - “anew variety 
of noxious, non-biodegradable 
landfill” its advertising claims. Its 
own machines, it says, simply have 
to have their toner replenished. 

“How to save the world from 


your office” was the slogan 
Kyocera used to advertise its 
Ecosys range of p rinter s. Even at 
street prices they work out mace 
expensive In capital cost than their 
HP equivalents: “You should tell 
your customers there is no greater 
investment than saving the 
Earth," Inamoii told his senior 
mangers. The campaign was aimed 
at increasing awareness of the 
Kyocera brand But the business 
world is dearly not yet ready to 
embrace greenness as a criteria for 
printer purchase. “Perhaps nwt 
year” was a typical response from 

potential CUStOmBfS. 

This spring, with the slogan “the 
mm winter that prints money”. 
Kyocera in the UK switched to a 
new campaign based on data 
coDecied by Context, a 
London-based marketing 
consultancy. Its analysis suggests 
that over the life of a printer, the 


The market may 
have to go through 
some re-education if 
Kyocera is to get its 
message across 


cost of consumables - paper, timer, 
new cartridges - is more 
significant than the purchase 
price. 

It concludes: “Kyocera is able to 
lead the field in terms of overall 
cost of ownership through its 
adoption of a long-life developer 
and drum assembly unit which haw 
a life of 300,000 pages.” Kyocera 
claims costs of 0^p a page 
compared with. LSp a page for 
enmp ptin g systems. Its rivals 
dispute these figures. 

Will this latest campaign be 
successful? The photocopier 
market Is familiar with the 

concept of cost per page but it is 
new to the printer business. Most 
companies neither know nor 
measure their printing costs. And 
different managers may be 
responsible for capital spending 
and spending on consumables. The 
market may have to go through 
some sharp re-education if Kyocera 
is to get Us message across. 


E ven before the great soap 
war erupted this summer 
between Unilever and Proc- 
ter & Gamble, the two com- 
panies were together expected to 
spend more than £75m in 1994 
advertising and promoting their 
Pasll and Ariel brands in the UK. 

That is more than last year's total 
annual sales of Britain’s 28th big- 
gest. grocery brand, Felix catfood. 
On Us own, Penal's 1993 marketi n g 
and advertising expenditure of 
around £38m was equivalent to the 
total supermarket and high street 
grocery sales of Cadbury’s Dairy 
MHk chocolate, and Ariel's £35m to 
the total grocery sales of Schweppes 
mixers. 

Such can be the cost of m ain ta in - 
fog and refreshing a top grocery 
brand - a cost which is making it 
prohibitive even for many house- 
hold names to sustain their special 
place In consumes 1 hearts by using 
traditional marketing strategies. 

Economies of scale are making 
life hard even for medium-sized 
brands. The average cost of main- 
taining a top-10 brand last year was 
- £15in, about 7 per cent of sales. But 
for the top 70 as a whole it was £8m, 
more thaw io per cent of sales, 
according to a new study by Added 
Value, a marketing consultancy. 
For the first time, its research esti- 
mates both advertising and nor- 
mally hidden "below the line” 
expenditure figures. The latter cov- 
ers direct marketing; sales promo- 
tion, trade promotions and public 
relations. 

"Many brands have an uphill 
struggle to Miter the mains tream,” 
comments Rahul Sen, a manager at 
Added Value. "If they can create 
critical mass then the ratio of 
advertising and promotion expendi- 
ture to sales fall« rapidly. But If the 
marketing is not quite working, the 
ratio becomes very high.” 

Sen suggests that marketers in 
many categories of product are too 
influenced by competitors’ expendi- 
ture and advertising patterns, 
rather than concentrating on what 
is needed to build a credible overall 
presence. Only a few can afford to 
create that presence on television, 
be adds: “The question is what hap- 
pens to the rest A lot of small 
brands win die." 

Sen’s gloomy predictions are 
backed by as yet unpublished 
research conducted by OC&C Strat- 
egy Consultants earlier this year. 
For one of the top-10 food compa- 
nies, the marketing costs of a typi- 
cal food product launch - currently 
running at an average £3m - will 
take 2 per cent of operating profits, 
says Michael Jary, OC&C director. 
But for a company ranking 31-40 
they will account for 27 per cent of 
profits. For tme between 51 and 60 
they will gobble up 84 per cent 
"Escalating marketing costs sug- 
gest that fewer products are getting 



Total 19B3 a dvwtfai a g wpandBue =» C14-9m 
Average spend by category = CISm 




V ■. 

pr- -- - v . .. •* rfrf- 

■teTV :\ A .',. 1 . ,v, 


A costly 



Alan Mitchell looks at new research 
into the price of promoting and 
maintaining brands 


sufficient support during launch to 
create a defensible franchise,” says 
Jary. “You don’t have to be too fer 
down the league before you cant 
launch a new product” 

Companies have already devel- 
oped branding and marketing strat- . 
egfes which respond to these cost 
pressures. For example, all commer- 
cials for Cadbury chocolates carry 
the corporate name; the budget is 
then evenly spread across selected 
brands, including Cnmchie bars. 
Others, such as Boumeville choco- 
late, are not advertised at alL 
Marketers at Unilever’s Birds Eye 
Walls subsidiary now have a strict 
umbrella branding policy whereby 


all the company’s advertising is 
deigned to enhance the standing of 
its various sub-brands, and all new 
product advertising is equally 
designed to “freshen” the Birds Eye 
image. Says John Sharpe, Birds Eye 
Walls’ chairman: “With the costs of 
supporting and developing a brand 
you have got to look for the best 
synergies.” Even so, be adds, “we 
are definitely removing support 
from certain products to concen- 
trate resources on p rio rit y brands, 
and we are also having to rational- 
ise our product range”. 

“Most companies just cannot 
afford to keep their whole load of 
brands- fresh, so they are trimming. 



British Excellence and Quality 


AN OCCASIONAL SERIES 


Henley 

Management College 

Henley is a full-range Business School. It offers a unique portfolio of 
management development programmes for individual executives, companies or 
consortia of companies. They are at middle to top management level and range 
from short courses to MBAs and DBAs. 

From a solid foundation of excellence established 50 years ago in Britain, 
Henley has created an international network of strategic alliances through which 
to deliver its programmes globally. The college operates in twenty countries in 
five continents delivering high quality relevant management development 
programmes which incorporate leading-edge international management 
knowledge and innovative multi-media delivery technology. There are nearly 
7000 managers on Henley programmes in 80 countries. 

Henley currently works with 22 organisations world-wide to provide 
customised management development. Whether in Africa, Hong Kong, or 
Sc and i na via, Henley can bring its unique blend of individual tutorial style, new 
technology and international perspectives to enhance management and corporate 
development. 

Henley's scope is global but we never lose sight of the individual coarse 
member. Their needs drive our programmes. Thus the Healey philosophy 
“B uilding People - Building Business". 







The Committee, , which was established in 1992, aims to focus attention on 
British excellence, style, craftsmanship, innovation and service. 

These are qualities which all its members share and for which British products 
and services are renowned around the world. 

For further infiwrrmtMwi, plmw contact 

The Director, The Walpole Committee, 40 Charles Street, London W1X7PB, England. 

Tel: +44 71 435 3219 Fax: +44 71 495 3220 


PEOPLE 


World 
Bank's new 
spin doctor 

Mark Malloch Brown, 40, a 
former journalist on The Econ- 
omist, has been given tile job 
of repairing the* image of the 
Washington-based World Bank, 
which is celebrating its fiftieth 
anniversary this year. 

A British national who cre- 
ated and edited The Economist 
Development Report, he has 
been appointed director of 
external affaire, reporting to 
World Bank president Lewis 
Preston. He replaces Alexander 
Shakow who becomes senior 
adviser in the Bank’s 
operations policy department. 

The Bank has come under 
increasing attack over the last 



couple of years. Those on the 
right argue that the markets 
can take over its role as Inves- 
tor in developing countries. 
Others argue that the Bank's 
programmes have hurt rather 
than helped the poor. The 
decline in the Bank's Image 
haw been partly blamed an its 
inability to get Its message 
across. 

Malloch Brown’s media skills 
have been honed in some of 
the world's toughest trouble 
spots. During his time with the 
United Nations High Commis- 
sioner for Refugees he was 
responsible for establishing 
camps for Cambodian refugees. 
Other jobs have included advis- 
ing the presidential «nnpirig n« 
of Cory Aquino in the Philip- 
pines and Mario Vargas Uosa 
in Peru. 

He currently heads the inter- 
national practice of Robinson 
Lake Sawyer Miller, a Wash- 
ington political consultancy. 


*H0W EUROPE 
SELLS 1 

A STUDY OF FIELD 
SALES PERSONNEL 

For farther information: 
Kuwaird Communications 
Tel: (041) 616 0616 
Fasc (041)616 0173 


Northern Leisure selects 
managing director 


Clive Preston, 55, has been 
appointed managing dir ec to r of 
Northern Leisure, the Preston- 
based group which is recover- 
ing from a period of over-ex- 
pansion and heavy losses. 

Preston, who joined the 
group in I960, is currently the 
operations director. 

In his new role he. will run 
the group on a day-today basis 
and take same erf the weight off 

the shoulders of Nicholas 
Oppenheim, the group’s vice 
c h air man . Oppenheim had got 


more heavily involved in the 
company's pmrfra after it ran 
into trouble and. has helped 
oversee the slimming down of 
the business and Us refinanc- 
ing: 

Robert Wickham, 61, a for- 
mer general manager of the 
Bank of Scotland, has also 
joined the board as a non-exec- 
utive director. 

Graham Massey, 39, . who 
runs the group’s bowling cen- 
tres, has also been appointed to 
the board. 


Salomon's equity drive 


Salomon Brothers is 
con tinuing its push into the 
European equity business by 
moving David Karat, head of 
the firm’s European fixed-in- 
come capital markets group, 
over to lead its UK corporate 
finance team. 

Karat is the archetypal 
investment banker. The 42- 
year-old, who started out as a 
lawyer with Slaughter and 


May, is seen as one of Salo- 
mon’s main “business-bufld- 
ers" because of his success in 
restoring the firm’s reputation 
in the primary fixed-income 
business following the US 
Treasury auction scandal in 
199L 

Karat will be replaced by 
Richard Boath, who followed 
him to Salomon Cram Merrill 
Lynch. 


GARETH GRIFFITHS . . 


Gareth Griffith who has 1 died 
at the age of 40, Joined the 
industrial reporting side <£ the 
Financial Times in island 
later went, on, to make Ids 
mark in a wider field. 

After grammar sch$qfc in 
Wales and Jesus College. 
Oxford, he joined Thomam’s 
regional papers in Wales . ami 
then the Liverpool Daily Egst. 

At the FT, he helped 
the paper’s coverage oF social 
affairs. . ; v 

In 1984 he decided to study 
law, and was called to tfieSar 
in 1988,; • 

But a summer relief job with 
the public relations agency 
Carl Byotr persuaded lrija to 
pursue a career in- PR, first 
with Shandwlckand later fer a 
short time with BursohMar- 
steller, before success$Uy 
branching out cm his own:- 
He acted for such btaechip 
names, as Dalgety, Booker' mid 
the Oxford University appeal. 

Recently, he had decided to 
read for holy orders and was to 
have entered St Michael's Col- 
lege. Uandaff. next month to 
undertake the long road to 
ordination in the Church of 
Wales. 


CONTRACTS & TENDERS 


PEMEX-REFINACION 

PUBLIC iMTERNATIOMAL 
TENDER PR-SPP-230894 

PEMEX-REFINACION, The Mexican National Oil Agency invites 
ail the companies or consortiums wishing to participate in the bid 
for the "EPC“ contract delayed coking unit and associated gas 
plant in the refinery "Ing. Hector R. Lara Sosa" located at 
Cadereyta, N.L 

information related to this project is available from: 

PEMEX-REFINACION 

Subdireccion de Proyectos de Desamoik) 

Bahia de Santa Barbara 176 2o. Piso 
Col. Veronica Anzures 
11590 Mexico, D.F. 

Tel: (525) 260-65-04 
Fax: (525) 254-49-41 

Contact: Ing. Eduardo Vergara Cabrera 




/ 


- cutting their tafi-end brands off," 
comments John Brady, head of. the 
consumer goods and retail practice 
of McKinsey, the management con- 
sultancy. This, he points out, is 
“emotionally a very hard thing to 
do. But if you assign all relevant 
costs - not just advertising and pro- 
motion spends - you often find they 
are losing you money”. 

Now, however, some marketers 
are realising that even the syner- 
gies generated by portfolio rational- 
isation and classic umbrella brand- 
ing may no longer be enough. Next 
month, , for example, the first corpo- 
rate brand-building campaign for 
ETwinz should appear on Britain’s 
television screen s. Heinz has 
decided, to withdraw all product 
advertising 1 from television to con- 
centrate its resources on direct mar- 
keting. Television will be for the 
corporate brand alone. 

This is not because the company 
is now a rumoured takeover target, 
but because of the more mundane 
fl flgtmna . hi g hli g hted by Added Val- 
ue’s research. With, an advertising 
budget of g l ftm , Heinz had an aver-, 
age of just £0£m to support each of 
its Leading categories, such as 
baked beans, soups, baby foods and 
tetehups. it would have bem:“a 
Herculean task” for Heinz to sup- 
port its 350 separate variants <m 
television, agrees a spokesman. 
“There was no way we could doit 
We reached a point where it was 
time for us to review our whole 
marketing strategy." 

- Heinz’s rethink and Added Vat 
ne's research suggest that for those 
many brands whose total sales 
struggle to keep pace with the mar- 
keting spends of “power brands” 
such as Persfl and Ariel, more such 
“put-up or start-up" decisions will 
have to be made: 

Comments Roger Ramsden of the 
Boston Consulting Group. “Most 
co mpanies are reappraising their 
brand portfolios as a consequence of 
the cost of maintaining thei r brand 
presence. Many are beginning to 
include private label production [for 
retailers] in their plans.” 

That is thfl shut-up hhriisE The 
put-up alternative? Says Sen: “If 
you have classical television-led 
brand management and you only 
have £lm-£2m to spend, you are 
likely to lose. So you have to look at 
rum-conventional methods to avoid 
the costs of entry r* Heinz has cho- 
■ sen a database marketing route. 

MCUler, the sensation of the UK 
yoghurt market, forced its way into 
the branded goods charts by plough- 
ing all Its marketing budget , into 
distribution - offering retailers 
margins they could not refuse, 
notes Jary. 

As the cost of branding combines 
in a pincer movement with rising 
retailer power, mare grocery brand 
marketers wDl have to develop simi- 
larly innovative atrategtea. •• ••■ 


-'\ i 


r:* 


S!- 



- ' , 
V . 




j*- 1 










: .V 

SZu'.; .. . 
IE.'., : v-: 

£ . 


• V:V 






SSt,... 

^f.W- 














FINANCIAL TIMES THURSDAY SEPTEMBER 1 1994 ★ 


13 


ARTS 


the hudsucker PROXY (PG) 
JTod Coen 


WHEN A MAN LOVES A WOMAT- 

T ■ ‘ I5 > 

Luis Mandokl 


the SLINGSHOT (12) 

Ake Sandgren 


BOSNAI 

Beraard-Henri Levy 


I f you can imagine Death Of a Sales- 
man gift-wrapped tor Christmas by 
Frank Capra - and I sympathise if 
you cannot - you will have an idea 
of The Hudsucker Proxy. 

Hie film-making Coen brothers, writer- 
director Joel and writer-producer Ethan, 
have long been threatening to mnv» an 
overb lown, under-conceived movie. Blood 
Simple was a modest but punch-packing 
murder thriller; Raising Arizona was a 
slight hut funny baby-napping comedy; 
idler's Crossing was a rich, labyrinthine, 
intermittently barmy tale of American- 
hish gangster wars. Then rar y>p Barton 
Fink, stylish, bloated, loved by the French 
and be g inni n g to hint at major vacuity. 
Now we have The Hudsucker Proxy, a 
whi m si c a l enormity in which the brothers' 
whole creative operation to have 

been surrendered to their production 
designer, Dennis Gassner and his numer- 
ous assistants. 

Size and show have been used to cover 
up the pinbrained premise. Amid over-rich 
sets - every room looks like Grand Cen- 
tral Station, every actor seems to be 
drowning in the ochre-and-twiHght tight- - 
we watch a fable of man's greedy quest for 
enrichment. Takeovers threaten Hud- 
sucker Industries, New York, after the sui- 
cide of their chair man just before Christ- 
mas, 1958. We see this in flashback: 
Waring Hudsucker (Charles Duming) taxi- 
ing for take-off on the boardroom table 
before flying through the window. 

Can his aide and next-in-line Sidney 
Mus&burger (Paul Newman) lower the 
company’s stock, thereby enabling the 
board to boy control? And might not the 
best way to effect that devaluation be to 
appoint a nincompoop as chairman? 

Enter mailboy NorviUe Barnes (Tim 
Robbins), upon which everything goes 
according to plan. Hie movie’s moral plan, 
that is, not Newman’s money plan. Nor- 
vffle sends the stock skyrocketing with his 
first theoretically silly invention - the 
hula hoop (all resemblances to real his- 
tory . . .) - and by the close he is announc- 
ing something even more stupid called a 
frisbee. 

Between the crunching ironies about 
small dreams triumphing in the teeth of 
repressive corporate ambition, our hero is 
visited and romanced by a character we 
can only call the Ghost of Screwball Hero- 
ines Past She is reporter Amy Archer, 
played by Jennifer Jason Leigh as if the 
Coens had sat her down at a phonograph 
with records of Katharine Hepburn and 
Jean Arthur and told her to stay until she 
could do them both to a turn. 

A “turn” is what the poor actress then 
gives us. We feel our minds’ ears bring 
dragged through Mr Smith Goes To Wash - 



Capitalism stuck in a time-warp 


ington and Mr Deeds Goes To Town and 
Bringing Up Baby, as if not only were 
there no tomorrow but today had been 
forced at gunpoint to turn into yesterday. 

Everything in The Hudsucker Proxy is 
nostalgic paaKdig from the corny-sumptu- 
ous Wwrfiahirii^ mucin (r pmpnicah ln to 

ex-addicts of TV’s The Onedin Line ) to the 
lovingly mocked-up skyscrapers embossed 
with giant docks, out of Citizen Hone by 
Harold Lloyd. As for the film’s David-ver- 
sus-GoHath view of industrial politics, it is 
stuck around the year of Fritz Lang’s 
Metropolis. 

Hie Coens play their capitalism-trashing 
fable for comedy not epic melodrama; but 
its simplifications still seem retarded. In 
this world everyone who holds power 
(Newman) or gains power (Robbins) 
becomes corrupt. “Little" ideas are the 
truly dura We ones. And only the love of a 
good woman can hope to turn our hero 
from the path of moral degeneration. Sad, 
sententious, time-warped. Wake me up 

when the Coen brothers reach 1991 

• 

Hollywood has traditionally been reluctant 
to make films about alcoholism, writes 
Stephen Anddon. When drunks do appear 
on screen, they are usually used for either 


comic relief or a quick shot of pathos. 
Eliciting sympathy for the addict is a 
tricky business, requiring the genius of a 
Jack Lemmon or a Michael Keaton. Far 
better to afflict your hero with a less prob- 
lematic disease. 

Hie makers of When a Man Loves a 
Woman seem to have lost sight of this 
fact, creating a wino weepie that never 
really engages the audience’s sympathy. In 
it, yuppie Alice Green (Meg Ryan) tries to 
kick her quart-a-day Vodka habit at an 
exclusive rffafa while her hunky, caring 
tiimhand (Andy Garda) looks after their 
angelic kids in a San Francisco dream 
Hmnp, aided by a dili gent ethnic nanny. 
Setting aside the obvious cavil that if 
someone who looked like Meg Ryan drank 
a quart of Stoli a day she would not look 
much like Meg Ryan, It would still take a 
rare film indeed to make us care for such a 
pa m pered character. 

Unfortunately, director Luis Mandoki 
tries to push all our pity buttons without 
first earning our respect He, along with 
writers Ronald Bass and A1 Franken, 
would have us believe that their heroine 
merely catches alcoholism as she might 
’flu. It doesn’t wash. Kicking the bottle 
certainly has its heroic elements, but they 


are of a different order than those found 
in, say, terminal cases. Ryan is at a loss to 
portray a character for wham hitting bot- 
tom means talcing a baby step down the 
social ladder, while Andy Garcia is equally 
at sea as her beleaguered spouse. Only 
Ellen Burs ty n as Ryan's acerbic mother 
can inject some realistic passion into the 
film, suggesting that somebody might be 
to blame for thfa boozing after alL 
•k 

The Slingshot is one of those perfectly 
pitched coming-of-age stories that the 
Swedish film industry churns out with 
alarming regularity. Set in 1920s Stock- 
holm, it follows the exploits of Roland, a 
poor yet resourceful 12-year-old who wins 
friends by using the condoms his progres- 
sive parents distribute to make slingshots. 

Director Ake Sandgren’s touch is as 
light as a feather, allowing him to modu- 
late scenes of ribald anarchy and gentle 
emotion without ever hitting a wrong 
note. Lesser talents would have turned the 
prophylactic weaponry into the film’s cen- 
trepiece, but Sandgren wisely keeps it just 
one of many arresting images of youth. 
And it is a measure of the director’s ironic 
sensibility that when Roland finally 
escapes poverty for his childhood paradise. 


his destination turns out to be a reform 
school. 

Bemard-Henri Levy's Bosna! is an old- 
style polemic whose maker would like 
nothing better than to have its audience 
stor m out of the ICA, rush across The Mall 
and besiege the Foreign Office, demanding 
something he done about the situation in 
Bosnia. Levy spent several months in the 
Balkans last year, collecting Imagery too 
powerful for the TV news - snipers at 
work, the aftermath of bombings and 
beheadings, and one unforgettable scene 
of a concentration camp inmate dying of 
shock after bring given his first drink of 
water in three days. 

Levy argues that the Bosnian govern- 
ment's fate is a political situation which 
the west has cravenly transformed into a 
humanitarian crisis. It is a compelling 
point, though the director’s unchecked 
partisanship hinders his argument. The 
Serbs are referred to as “scum" and at no 
time are they asked to give their ride of 
the story, weak as it may be. NATO's 
recent air strikes, meanwhile, undercut 
Levy's accusations of western inaction. 
That said, this remains a disturbing docu- 
mentary should shame everyone who 
rlaims to suffer from compassion fatigue. 



Theatre in Edinburgh/Martin Hoyle 

Armstrong's Last Goodnight 


S cottish Nationalists who have been 
complaining about the paucity of 
native culture in the official Edin- 
burgh Festival may be appeased by 
a slice of Scots history from an English 
playwright. Certainly, Armstrong’s Last 
Goodnight by John Arden, unveiled at the 
Lyceum Theatre 30 years after its Glasgow 
premiere is a tough experience for non- 
Caledonians. Mori of it, c o nducted in an 
accent that makes Rab C. Nesbitt sound 
like Brian Sewell, is unintelligible: and 
when intelligible, uninteresting. 

Hie story Is set on the Anglo-Scots 
marches, among the reivers, those free- 
booting lairds who cocked a snook at 
authorities on both sides of the border, 
cattle-rustlers, pillagers and gangsters 
whose favourite form of protection money 
came in the original “black mail ". Hie 
central character is John Armstrong of 
Gilnockie. a historical figure in the time of 
■fames V anti his imnlp Henry VTTT. His 
execution by the Scottish king is the sub- 
ject of an old ballad. The modem play- 


wright has fleshed out this violent episode 
with what I suspect are reflections on the 
nature of politics, trust, responsibility ami 
probably nouveBe cuisine, DIY and for- 
mula one racing for all I could gather from 
the incomprehensible dialogue. 

What is clear from William Gaskill’s 
indeterminate direction is that characteri- 
sation is almost totally absent The play is 
less a think piece than a talk piece. For 
the most part these are pawns who come 
on, talk politics and walk off. When some- 
thing more engaging is called for the 
result is embarrassing. The courtesan mis- 
tress of the smoothie troubleshooter and 
man of letters Sir David Lindsay is a terri- 
ble cliche, and so Alison Peebles plays her, 
strenuously roguish, hand on hip. with, 
much swishing of skirts and knowing 
oeuillades at the audience. 

Fairly typical of the writing’s inability 
to rise to the theatrical challenge is the 
scene where the roistering Armstrong and 
his followers are revealed as converts to a 
reforming evangelist, with no hint of how. 


when or why these bandits turned into 
witnesses of faith that Billy Graham 
would be proud o£ Hie conversion has 
been done off-stage with the chastity of a 
an ancient Greek disaster. On second 
thoughts perhaps one should be thankfoL 

Hie ideas are not only banal but con- 
fused: sophisticated redtpolitik is set 
against - what? For the main weakness of 
this production is the void at its centre. 
Stuart Hepburn's dowdy Armstrong is so 
glumly un charismatic as to verge on the 
invisible. IBs final tragedy, lured to a 
treacherous end in his finery with the 
king’s false safe-conduct, leaves the 
impression of the death of a strutting 
clown since it has been preceded by no 
characterisation whatever. 

The vast cast-list suggests that Arden 
had seen Osborne’s Luther - there are 
hints of an attempt at the same historic 
scope, which may have prompted the 1966 
National Theatre production with Albert 
Finney. That must have been more grip- 
ping. Or more decipherable. 


Obituary 

Lindsay 

Anderson 

L indsay Anderson, who died In 
France on Tuesday, was among 
the small group of directors who 
in the 1950s and 1960s trans- 
formed British cinema from a blinkered 
guardian of the nation’s institutions Into 
a sharply satirical mirror of its many Ills. 

Along with his “Free Cinema” col- 
leagues Tony Richardson and Karel Keisz, 
Anderson spearheaded a national film 
movement which rivalled its French and 
American counterparts for intelligence 
and trenchant social analysis. Current 
lament ati ons about the sad state of the 
British movie industry almost inevitably 
point to Anderson’s work as the ideal so 
rarely attained nowadays. 

Born in Bangalore in 1923 into a Scot- 
tish military family, Anderson served 
with the Army Intelligence Corps in the 
second world war before entering Oxford, 
where he edited the influential film jour- 
nal. Sequence. Upon graduation be pur- 
sued a career as a film critic for such 
publications as New Statesman, Sight and 
Sound and The Observer, platforms be 
used to rail against the conformity and 
anaemia of British film-making. 

Before long, Anderson began to make 
films himself, cutting his teeth on a series 
of respected short documentaries that 
concluded with his Academy Award win- 
ning Thursday's Children in 1955. During 
this period, Anderson also distinguished 
himself as a theatre director at the Royal 
Court as well as directing five episodes of 
the famous Robin Hood series for televi- 
sion. 

Anderson’s career in feature films 
began spectacularly in 1963 with This 
Sporting Life, a powerful examination of 
celebrity and class dynamics in which 
Richard Harris portrayed a social-clim- 
bing rugby player. Although firmly in the 
tradition of the Angry Young Man school 
of gritty realism, Anderson’s first film 
distinguished itself through a crisp anec- 
dotal style gleaned from his years as a 
documentary maker. 

Hie director’s next triumph was his 
public school masterpiece (1968), a 
quintessential study of 1960s alienation 
and surely one of the greatest youth rebel- 
lion films of all time. That film’s star, 
Malcolm MacDoweD, was again f eatured 
in the final instalment of Anderson’s 
informal trilogy of decay in British fife, O 
Lucky Man! (1973), a technically -brilfi ant 
and blackly fanny account of capitalism 
gone mad, fa all these films the rigid 
institutions that held British society 
together were subjected to a brutal analy- 
sis, while at the same time an anarchic, 
emotional humanity was unabashedly tri- 
umphant. Though heavily schooled in the- 
ory, Anderson was above all else a vis- 
ceral, ins tinc tive talent who name to have 
little time for the visual technocrats cur- 
rently masquerading as the avant garde 
of British film-making. 

Anderson’s later work never quite 
readied the dizzying heights he achieved 
in his first decade of feature film-making. 
Britannia Hospital (1982), a scathing sat- 
ire of the NHS, had its memorable 
moments, though the deftness of comic 
tom* that marked its predecessors was 
missing. And The Whales of August (1987), 
Anderson’s only American film, was a 
sentimental drama of the first order that 
nevertheless had little to do with the diz- 
zying darkness of his previous work- Dur- 
ing tins period he also continued to direct 
far the stage and television (most recently 
be returned to the National Theatre last 
year to direct a sell-out production of 
David Storey’s new play Stages) as well as 
to act, most notably his portrayal along- 
side John Gielgud of an anti-Semitic Cam- 
bridge doa in Chariots of Fire. 

In 1947, reflecting on the controversy 
surrounding Powell and Pressburger’s 
The Life and Times of Colonel Blimp. 
Anderson remarked that “perhaps the 
tendency is to treat the films of one’s own 
country like its prophets - with less than 
justice.” It is a mark of Lindsay Ander- 
son's contribution as a director that it 
would be difficult for any justly -minded 
film goer to deny that his oracular, tren- 
chant and altogether unique vision is one 
that remains unsurpassed in his nation’s 
cinematic tradition. 

Stephen Amidon 


li International^ 

A 

K 

rs 

Gi 

01 

D 

Ej 


ATHENS 


Herodes Attfcus Tonight, 
Kirov Ballet in Yuri 
h's production of 
l Next Tues. Wed: 

Wuti conducts Vienna 
me Orchestra in 
By Mozart. Beethoven, 
i Bruckner. Sep 9. 10. 12, 
Ballet (01-322 1469). 
j at Megaron: Giulini 
Orchestra of La Scaia 
$33/01-722 5511) 


instate The autumn 
vi opens on Sap 23 

stral programme 
r Jlri Kout featuring 
/iktor Trottakov 
nte Autonomo Teatro 
fi Bologna, Largo 
3126 Bologna. No 
jkings accepted. For 
all 051-529999) 


■ GENOA 

Teatro Carlo Podce The Odessa 


Opera gives the first of four guest 
performances of Tchaikovsky’s The 
Maid of Orleans on Sep 22 
(010-589329) 


■ LONDON 

THEATRE 

• The Devil’s Disciple: Bernard 
Shaw's 1897 satire on melodrama, 
set during the American War of 
Independence, is directed by 

Christopher Morahan. The plot 

features the romantic viUain, Dick 
Dudgeon (played by Richard 
BonneviBe), a disgrace to his fam3y, 
who is driven to an act of goodness 
through his own innate virtue. 
Previews start tonight, opens Sep 8 
(National 071-928 2252) 

• Design for Living: Sean Mathias, 
one of Britain’s leading young 
directors, takes a fresh took at Noel 
Coward’s menage & trots who reject 
conventional values. The cast 
Includes Clive Owen, Pad Rhys and 
Rachel Weisz. Previews start 
tonight, opens next Tues (Donmar. 
Warehouse 071-309 1732) 

• The Winslow Boy: this new 
production of Terence Rattigan’s 
1946 play marks the latest step in 
the Rattigan revival. Peter Barkworth 
plays toe stiff upper-flpped father 
trying to prove the innocence of his 
14 -year old son, who has been 
expelled from Royal Naval College 
[Gto»e 071-434 5065) 

• The Miracle Worker Jenny 
Saagrove is the beautiful heroine in 
Wiffiam Gibson's weH-taBored 
tear-jerker about the Wind Infant 
Helen Keller (Wyndhams 071-369 
173 6) 

• The Cryptogram: Lindsay 
Duncan and Eddie Izzard star In 


David Mamet’s tantalising new piay 
about betrayal (Ambassadors 
071-836 1171) 

• Arcadia: Tom Stoppard’s 
complex comedy for the mind and 
the heart, directed by Trevor Nurm 
(Haymarket 071-930 8800} 

• Dead Funny: Terry Johnson’s 
brilliant, elegantly-acted comedy 
about marriage among toe 
emotionafly retarded middle classes 
(Vaudevifie 071-836 9987) 

• She Loves Me: toe charming 
1963 Masteroff, Bock and Barrack 
musical about two longtime pen pals 
who don’t know they work in the 
same parfumerie- Ruthie HenshaU 
and John Gordon Sind air head the 
cast (Savoy 071-836 8888} 

CONCERTS 

Royal Afoert HaB The Proms 
continue till Sep 10. Tonight 
Esa-Pekka Salonen conducts the 
Los Angetes Ptutoarmonic. followed 
by a late evening concert by toe 
London Stoforfetta. Tomorrow: Carlo 
Rizri conducts Orchestra of WNO. 
$ac GOnter Wand conducts BBCSO 
in Schubert’s Sghto and Ntoto 
Symphonies. Sun: Richard Hfckox 
conducts Matoobn Arnold’s Second 
Symphony and Orffs Carmina 
Burana. Mon: Andrew Davis 
conducts BBCSO in Boulez, 

Madema and Berg. Tues and Wed: 
Cotin Davis conducts Dresden 
StaatskapeHe (071-823 9998) 
Barbican Tonight tomorrow. Victor 
Borge. Sab Neville Marriner 
conducts Academy of St Martin in 
the Reids In Berlioz, Beethoven and 
Brahms, with vioftn soloist Kyoto 
Takezawa Sep 21, 22: opening of 
London Symphony Orchestra's 
Mahler festival. Sep 29: LSO 90th 
birthday concert (071-838 8891) 


Wigmore Han An International 
Festival of Song opens on Sat, with 
a programme featuring Barbara 
Bonney, Anne Satie von Otter, Kurt 
Streit and Olaf Bdr, accompanied by 
Helmut Deutsch and Bengt 
Forsberg. Other recitalists to the 
series are Christian Oelze and Hans 
Peter Blochwitz (Sep 4), Dawn 
Upshaw and BSr (Sep 6), a Bonney 
solo recital (Sep 8), Christine 
Schaefer and Kari-Magnus 
Frederiksson (Sep 13), Jennifer 

larmore (Sep 19) and June 
Anderson (Sep 20). The Nash 
Ensemble plays new chamber works 
by Henze on Sep 20 (071-935 2141) 

OPERA 

Covent Garden The Royal Opera's 
1994-5 season opens on Sep 12 
with a revival of Andrei Serban's 
production of Turoidot, with a cast 
headed by Sharon Sweet La 
Cenerentola is revived on Sep 26, 
and toe first new productions of the 
season are Das Rheingold and Die 
WaJkure on Oct 13 and 14. The 
Royal Ballet’s first performance will 
be tiie British premiere on Nov 3 of 
Anthony Dowell's new production of 
Sleeping Beauty 0371-240 1086) 
Coliseum English National Opera's 
new season begins on Sep 12 with 
a new production of Tosca, staged 
by Keith Warner and conducted by 
Alexander Gibson, with a cast 
headed by Rosalind Plowright, David 
RendaB and Henk Smit (071-836 
3161) 

Sartor's Wells British Youth Opera 
opens a short season tonight with 
Eugene Onegin (repeated Sep 2, 15, 
17), to repertory with Rossini’s The 
Thieving Magpie (Sep 1, 3, 14, IB). 
Next week is devoted to 
performances by Wsdaiko Ichiro 


Drummers (071-278 8916) 

Queen EBzabeth Hafl The final 
performances of Opera Factory’s 
production of Nigel Osborne’s 
Sarajevo opera are tomorrow and 
Sat (071-928 8800) 


■ MILAN 

Teatro afie Scaia The Zeffirelli 
production of La bobeme is revived 
on Sep 17 for six performances 
starring Mirella Freni, Roberto 
Alagrta, Nicolai Ghiaurov and Gtoo 
Quilico (02-7200 3744} 


■ STRESA 

The chief selling point of Stress’s 
music festival is its situation on the 
Shore of Lake Maggiore in northern 
Italy. This year's highlights indude 
the pianist J6rg Demus (Sep 7), 
Martha Argerich (Sep 11) and 
soprano Katia Ricciarein (Sep 13). 
The festival ends on Sep 18 with the 
Berlin Radio Symphony Orchestra 
conducted by Vladimir Ashkenazy 
(0323-31095) 


■ TURIN 

SETTEMBRE MUSIGA 
Turin’s annual music festival opens 
on Sat with a concert at the Teatro 
Regio by toe Vienna Philharmonic 
Orchestra under Riccardo MutL 
Other high&ghts of the festival, 
which runs tfll Sep 22. Include 
performances by Steve Reich and 
Musicians, the Dowfand Consort, toe 
Royal Concarigetxxiw Orchestra 
under Riccardo Chaffly and the 
London Symphony Orchestra under 


Michael Tflson Thomas. There wiH 
also be concert performances of 
Gluck’s Orfeo and Debussy's Peftdas 
et MAHsande (011-562 0450) 


■ WARSAW 

This yew's Warsaw Autumn 
contemporary music festival (Sep 
15-24) offers tributes to three 
recently-deceased Polish composers 
- Witold Lutoslawski, Andrzej 
Panufnik and Roman 
Haubenstock-Ramati. Anne Sophie 
Mutter is violin soloist {Sep IQ in a 
programme devoted to Lutoslawski, 

who was for many years a leading 

fight of toe festival, and composed 
several pieces specially for Mutter. 
Antoni Wit conducts the Polish 
Radio Symphony Orchestra to 
PfflTufrilk’s Sinfonia di Sfere (Sep 
18), while Klangforum Wien devotes 
a whole programme (Sep 19) to 
Haubenstock-Ramati, who was 
music director of Cracow Radio m 
the late 1940s, before emigrating to 
Israel and later settling in Paris and 
Vienna. The younger generation of 
Polish composers is represented In 
a lunchtime programme on Sep 17 
entitled Hits from toe Sixties to the 
Nineties. Among toe foreign 
composers represented this year are 
Henri Dutffleux, Magnus Lind berg. 
Bright Sheng, Salvatore Sdarrino, 
Elliott Carter and Come&us Cardew. 
Festival office: Warsaw Autumn, 
Rynek Starego Mtosta 27. 00272 
Warsaw, Poland (tei/fax 
022-310607). During the period Sep 
12-25, aR enquiries to Warsaw 
Autumn, Hotel Europejski, 
Krakowsfoe Przedmiescte 13. 
Warsaw (tel 022-265051 fox 
022-261111) 


ARTS GLIDE 

Monday: Berfln, Naiw York and 
Paris. 

Tuesday: Austria, Belgium, 
Netherlands, Switzerland, Chi- 
cago. Washington. 
Wednesday: France, Ger- 
many, Scandinavia. 

Thursday: Italy, Spain, Athens, 
London, Prague. 

Friday: Exhibitions Guide. 

European Cable and 
Satellite Business TV 

(Central European Tima) 

MONDAY TO FRIDAY 
NBC/Supar Channel: FT Busi- 
ness Today 1330; FT Business 
Tonight 1730. 2230 

MONDAY 

NBC/Super Channel: FT 
Reports 1230. 

TUESDAY 

Euronews: FT Reports 0745, 
1315, 1545, 1815, 2345 

WEDNESDAY 

NBC/Super Channel: FT 
Reports 1230 

FRIDAY 

NBC/Super Channel: FT 
Reports 1230 

Sty News FT Reports 0230, 
2030 

SUNDAY 

NBC/Super Channel: FT 
Reports 2230 

Sty News FT Reports 0430, 
1730; 






14 


FINANCIAL TIMES THURSDAY SEPTEMBER 1 1994 


Bedrock unionism 
survives OK 



BOOK 

Review 


Since 1979 
British trade 
unions have 
lost about a 
third of their 
members, and 
onion strength 
is now concen- 
trated in the 
public services. Their member- 
ship is particularly weak 
am ong women and. in business 
sectors showing the fastest 
employment growth. 

At the same time, union 
political power has been much 
weakened. The abolition of 
National Economic Develop- 
ment Office and other tripar- 
tite bodies has cut them out of 
much decision-making. And 
Tony Blair has dearly stated 
unions will not have a privi- 
leged position in relation to a 
fixture Labour government. 

It is not surprising, then, 
that there should be a debate 
about whether the movement 
has a fixture, in anything like 
its present form. 

The Future of the Trade 
Onions presents the case for 
the defence. Commissioned by 
the Trades Union Congress, the 
hook is unashamed in advoca- 
ting a strong future role for the 
unions There is blush-induc- 
ing praise for general secre- 
taries. We hear a lot of John 
Monks and Bill Jordan but, 
strangely, there is no mention 
of Arthur Scargill (or Jimmy 
Knapp), though John Edmonds 
is allowed a few observations. 
Reacting to the fan in member- 
ship he grumbles: “Working 
people should be queueing up 
to join trade unions." 

But Taylor's case, though 
highly partial, deserves atten- 
tion. He says unions have 
begun to put their house In 
order and can look confidently 
to the future. 

His reason for opti- 
mism is that the European 
Union is re-establishing a 
framework in which trade 
unions have a privileged posi- 
tion in policy-making. The 
“social dialogue" formalised in 
the Maastricht treaty requires 
the Commission to consult 
employers and unions cm proj- 
ected social legislation. Agree- 
ments reached by the social 
partners can be adopted by the 
Council of Minis ters. 

When this procedure was 
first tried - over European 
works councils - it did not 


THE FUTURE OF 

THE TRADE UNIONS 
By Robert Taylor 

Andre Deutsch £9.99. 238 pages 

result in agreement Yet the 
Social Affairs Council seems 
likely to implement a directive 
establishing such councils, 
now called European commit- 
tees, in big European compa- 
nies (many with UK parents). 
British unions see a re-entry 
point here. As Taylor says in 
mmmuirighig his wrmri argu- 
ment The ED has provided not 
just “a lifeline for the trade 
unions , but the rnaans for a 
potentially effective counter-of- 
fensive by organised labour for 
the rest of the 1990s”. 

His third argument is that 
the key to enhanced competi- 
tiveness is consensus in the 
workplace and onions are the 
path to this consensus. 

It sounds persuasive. So why 
are most employers still uncon- 
vinced that institutionalised 

works councils will help their 
businesses? And why do many 
prefer routes to better commu- 
nication with their workforces 
which do not pass through 
union channels? 

There are two main reasons. 
First, UK employers note that 
elsewhere in Europe works 
councils are not exclusively 
union-based structures. In 
France, “enterprise commit- 
tees" represent the whole 
workforce. While union repre- 
sentation is often prominent, 
unionisation is remarkably 
weak. Yet many British trade 
unionists talk as if European 
works councils will reestablish 
anions' exclusivity. Mr 
Fdrwnnrtg has said bluntly: “If 
we succeed, works councils 
would become our dream solu- 
tion to the problem of declin- 
ing trade union power." 

Taylor himself points out 
that iTutfainfliaj in which the 
trade lmi™ is the single chan- 
nel of representation are not 
compatible with support for 
universal civil rights for UK 
workers on a Continental 
model But it is not dear that 
the British trade union move- 
ment has yet accepted this. 

Employers' second concern 
is that many union leaders 
seem still to believe the inter- 
ests of employers and employ- 
ees are mutually exclusive. 


Taylor’s own writing provides 
two vivid examples. 

He contrasts British employ- 
ers' “commitment to deregu- 
lated labour markets" with the 
attitude “of their European 
mainland counterparts who 
have a aanaa of social and ethi- 
cal responsibility for the 
well-being of their employees”. 
Such g wiffaHwtinn is abs urd 
and offensive. He arguea, simi- 
larly, the decline of trade 
muon-based collective bargain- 
ing means employers have no 
“need to behave in a civilised 
manner towards their work- 
ers’*. This ignores the point 
that well-treated, involved 
employees will show greater 
commitment to a business and 
be more productive. 

There are unscrupulous 
employers against w h om indi- 
vidual employees need protec- 
tion. But most companies do 
not see their relationship with 
employees as a zero-sum game. 
They are keen to develop par- 
ticipation, and surveys show 
they are, overall, succeeding 

Employers are, today, not in 
principle hostile to anions. 
There is no evidence that they 
have forced the pace of union 
decline through derecognition. 
Indeed in the private sector 
union membership baa fanan 
far faster than recognition. 

And very few employers now 
say they have been unable to 
achieve restructuring because 
of union obstructionism. 

But bad m e m o rie s die hard, 
and have been reawakened by 
the behaviour of RMT, the 
transport onion, in the rail dis- 
pute. (RMT is not mentioned 
by Taylor.) So employers will 
he reluctant to support a mare 
prominent role in policy-mak- 
ing for trade unions, or Conti- 
nental-style logigXatirm . until 
more union leaders are ready 
to accept the consequences. 

That tnwanc greater identifi- 
cation with an enterprise's suc- 
cess and acceptance of non- 
union channels Some in the 
nnirm mnwwent. notably the 
TUC leadership, understand 
the implications of those 
choices. But this book shows 
there are many Flintstones 
still on tiie g ener al mmwi 

Howard Davies 

The author is director general 
of the Confederation of British 
Industry. 


W orld drugs groups 
are scrambling 
for position in the 
wiiArt for drugs 
that can be sold without a doc- 
tor’s prescription. This week's 
$2Abn acquisition by UK-based 
SmithKllne Beecham of the 
retail healthcare business of 

US phanmwnHp^il group Ster- 
ling Winthrop was the largest, 
but not the first in a series of 
deals by groups jockeying for 
position, in the “over-the- 
counter” market 
But in spite of their fashiona- 
bility. non-prescription pills 
are unlikely to prove a panacea 
for drugs companies troubled 
by slowing sales growth that 
has resulted from gov ernm ent 
attempts to curb healthcare 
costs. While some may gener- 
ate long-term profits, the high 
costs of bimfWng pnri market- 
ing products in a competitive 
sector means many may fad to 
make decent returns. 

For now, the over-the- 
counter market appears decep- 
tively attractive. SmithKllne 
Beecham estimates world sales 
In the market last year rose by 
7.1 per cent to $32.5bn. IMS 
jhp London mar- 
ket research company, fore- 
casts the US market should 
increase from $17.4bn last year 
to $2<L2bn by 1997. 

For drags companies, the 
nonrprescription market offers 
an opportunity for growth 
when other areas of their busi- 
nesses are under pressure. The 
prescription medicines sector 
expanded by only 4 per cent in 
1993, says IMS. 

But it is not just the lacklus- 
tre performance of other sec- 
tors which is fuelling interest 
in the over-the-counter market. 
“The basic driving force is the 
nodri of prrap niTrwnts to rein 

back healthcare spending,” 
explains Mr Chris Weighell, 
strategic planning manager of 
tmr international “hi many 
cases, particularly in Europe, 
health ministries are re- 
fusing to reimburse the cost of 
drags, forcing patients to pay 
for the mwtirtnftR themselves 
over the counter,” he says. 

The pharmac euticals compa- 
nies are also keen to sell for- 
merly prescription-only medi- 
cines over the counter because 
it allows ftwn to Extend the 
product-life of their drugs. This 
has become increasingly 
important for the drugs gro u ps 
because patents on half cf the 
50 top-selling US medicines 
will expire in the next four 
years. Broker Goldman Sachs 
estimates that this year alone 
17 drags with combined US 
annual sales of $U3tm will lose 
patent protection. 

That would be serious in any 
cir c umstanc es — in the past 





ALL GREEK TO YOU? 


R Mdrtt be. 


Financial Times Magazines ptijSsh a monthly magazine 

specially written for the investor xwtth a global perspective. 

We recognise the need for impartial investment advice - 

written by people who understand every aspect erf overseas 
investment 

ITs called Tim MmmUotM . 

And you don’t have to be an economist to understand 3. 


WRh a wea»i of eeftorial in every issue, ■ ffs the 
essential guide to the world of finance. And because 

The Internati o nal te pubfished by the Financial Times 

ftspedgree is impeccable. 

Already thousands of shrewd subscrtoers have 

reaRsed The (ntemattonaTsothergreat benefit 

ITS ABSOLUTELY FREE FOR ONE YEAR-. ; 

To join them simply comptete the free 
subscription form below. 


FINANCIAL TIMES 


Pis —s return to Kevin PbQBps, Ths 

te,Plw«wW oMgdto, far 

MjHiiy mnadtlr copy oTTtelaWmtaorM^ Bit 
pwo n a Ul i lw i iMg i xfc w fmm tfe« Ffcancfai Vmem. 


International, Greystoks Plan, Fsttsr Lana, London EC4A 1NO, UK 

□ a 33-44 


LJ 

S 


Job rite 

Matador 

Coay ny i p«h n MU tw e * 


Country 



□ a rTbiiuLliiifflaM rnvilMriThteiT 

Qz Cw ptoyd 
□ 3 C<MK*ara 
4 Ratted 

ft SUdmUnarapioyad 
WngrBuateM 
□ t financial SnvtoN 

B 2 Camutei 
a OteSaite 

O* TtaraportHtaw— CncwiciBBi 
|—| 5 oiMiBuioM muaiTsMttq 
QS Ejgndon{OUaharala.afc 3 
□ 7 MarulacBring/Eflginaaftag 
Q 90 OPiar (Plan a n«ia 


□ 5 55-64 
0 »!J* 
ifeaaall 


0 1 P qbwHb Bqutlaa 
l~l 2 te ama kral EquMaa 
03 OfltfMB Daportc 


Q4 Preparty 


a 


1 1*4*25 

2 35-34 


i Sondt 

0 5 Pradeua UatxteGana 
0 7 UnkltunMteri fiaida 
08 Otter WaraBonH riwaw 
_0 a aNon a _ 

0 1 CiadKCBnl Visa) 

□ 2 Gold Cate 
03 Ctwga Cara f&g. Amtx) 

0 PS Nona 


Paul Abrahams on why drugs companies have their 
eyes on the market for non-prescription medicines 

Pepped up for the 
counter- 




drags tygnp aninH assumed that 
they would lose 59 par cent of 
revenues within two years 
from drugs whose patents have 

expired - but the Impact now 
is greater. Producers of identi- 
cal, non-patented “generic" 
drags are entering markets 
earlier once patents expire. 
The result is a fell In prices: 
the price of generic verrions of 
Naprosyn, made by US drugs 
company Syntax, fell by 95 pm 1 
cent after Its patents expired to 
January. Some drugs compa- 
nies have even launched 
generic versions of their own 
drugs before patent expiry. 

To combat such pressures, 
companies selling patented 
drugs are trying harder to mar- 
ket them as over-the-counter 
products to the run-up to 
patent expiry. “If they can cre- 
ate a strong brand, the product 
can generate revenues for 
decades," says Mr Peter Glynn- 
Jones, manag in g director of 
strategic development at 
SmithKline Beecham consumer 
healthcare. 

The pharma ceuticals groups 
manufacturing prescription- 
only drags, have an advantage 
in the over-the-counter medi- 
cines market "Critical to the 
success of over-the-counter 
medicine is its prescription- 
only heritage,” says Mr John 
Walsh, president of US group 
Wamer-Lambert’s consumer 
products division. “Ten of the 
top 11 over-the-counter prod- 
ucts to the US were previously 
prescription-only medicines." 

Among the media nes whose 
patents expire soon and could, 
camming regulatory appro v al 
is granted, be sold without a 
prescription are some of the 
world’s top-selling drugs. They 
include: anti-ulcer drug Zantac; 
Glaxo's best selling medicine, 
and Zovirax, Wellcome’s her- 
pes treatment and the world’s 
fifth largest selling drug. 

The sales potential of such 
drugs is, to theory, huge: sales 
of prescription products have 
been known to increase more 
than fivefold. Take Gyne-Lotri- 
Tnin , a virtually nrikno wn pre- 
scription antifungal medicine 
for vaginal infections marketed 
by US company Schering- 
Plough. Prescription sales to 



1990 were worth only $22m. A 
year later, being launched 

as an over-the-counter product, 
r eac h ed $13Qm. 

But in spite of the rapid proj- 
ected growth for the over-the- 
counter market, many drugs 
group which want to enter the 
over-the-counter market do not 

“Ten of the top 11 
over-the-counter 
medicines In the 
US used to be 
prescription-only* 

have the expertise, interna- 
tional rtis t rih ntirm network. Of 
size to succeed. “The pharma- 
ceutical groups are good at dis- 
covery, development and mar- 
keting to doctors. That 
expertise does not carry over 
well to overto&cotmter," says 
Mr Wald, at Warner-Lambert. 

“Scale is vital, to arte to 
earn a good return on your 


investment you have to have a 
good range of products to 
reach the shelves of the phar- 
macist or supermarket You 
also need size to achieve toe 
purchasing power to swing 
good ttaaia to cansurner .adver- 
tising," says Mr James Dudley, 
managing director of consul- 
tancy James Dudley toterna- 
tinnai S mith Kline Beecham 
bought Sterling Winihrop’s 
business partly because of the 
latter’s expertise to selling 
over-the-counter chugs such as 
Panadol, toe world's best-sell- 
ing painkiller after aspirin. 

Many large groups which 
have drugs they want to 
become over-toe-counter prod- 
ucts but which have little pres- 
ence in the non-prescription 
market, have admitted their 
weakness and set up alliances 
with companies strong m con- 
sumer marketing. Glaxo -and 
Wellcorae have forged separate 
pacts with Warner-Lambert. 
Merck has teamed up with 
Johnson & Johnson, the US 


consumer products group. 

Yet such alliances will not 
guarantee sales success. 
De^dte the growth of the total 
over-the-counter market, it is a 
tough environment. Unlike 
Schering-Flough's drug Gyne- 
Lotrimto. which was launched 
into a market with no estab- 
lished rivals, sales of many 
drugs may hot exceed their 
prepatent expiry prescription 
levels. Aleve, for example, Syn- 
tex’s over-the-counter version 
of Naprosyn, is competing in 
the competitive market for 
analgesics (painkillers). Bro- 
kers Lehman Brothers expect 
it to generate sales in the US of 
no more than 5200 m a year, 
compared with prescription 
- sales of $ 3 hn last year. 

Similarly, the market for 
indigestion treatments is likely 
to prove exacting, with four 
similar new over-the-counter 
products being launched over 
the next two years. lAhman 
Brothers predict US non-pre- 
scription sales of SmlthKKne 
Beecham’s Tagamet win reach 
only gL50m by 1998. That com- 
pares with pre-patent expiry 
sales of (850m last year. 

E ven if decent sties are 
achieved, profitability 
is for from nnnMriiafo 
The launch and mar- 
keting costs are so high that 
typically products do hot 
break-even for at least three 
years, says Mr Glymt-Jtines.- 
If profi ts are made, rat-gins 
are likely to be less attractive 
than in toe prescription bust 
ness. Boots Healthcare interna- 
ti onal, the non-prescription 
business of Boots, the UK 
retailing ami pharmaceuticals 
group, estimates a successful 
over-the-counter company can 
achieve wtarghw of 15 -per cent. 
In contrast, brokers James 
Capel reckon a well-run drags 
group can achieve operating 
margins-of 29.3 per cgnt 
Such sales and earnings pro- 
jections, as well as the recent 
alliances and acquisitions, 
gjg ymnp that prescription prod- 
ucts wDl be cleared by regula- 
tory authorities for «» 1 « over 
the counter - but at least in 
the US such clearance has 
proved for from automatic. The 
federal Food and Drug Admin- 
istration advisory committees 
have refused to recommend, at 
least- for the - moment, Smitb- 
Klin ft Beecham’s Tagamet, ' 
Merck's Pepcid, Wellcome’s 
Zovirax, and Upjobn’s Rogatoe. 
They have yet to.be convinced 
the drugs would be safe and 
effective whan sold over the 
counter.. 

In spite of relatively, fast 
market growth, the road to 
profitable over the' counter 
sales is far from 


LETTERS TO THE EDITOR 

Number One Southwark Bridge, London SE1 9HL 

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

Ideas for UK healthcare imaginative 


From. Ur Malcolm Coles and 
Mr Peter Welch. 

Sir, The government and the 
Labour party should respond 
more positively to the Imagina- 
tive Ideas of Mr Peter Griffiths, 
former deputy chief executive 
of the National Health Service, 
cm the delivery cf healthcare 
(“Bottomley to row on private 
healthcare", August 24). The 
role of government is to ensure 
that a 'public" service such as 
healthcare is available to 
all, but not necessarily to sup- 
ply it via a public sector 
monopoly. 

The delivery of public ser- 
vices should meet three crite- 
ria. First, the services should 
be provided efficiently. Second, 
users should have a choice of 


providers. Third, service pro- 
viders should be accountable 
to thei r users. 

to a simple tax-funded sys- 
tem, however, the supply of 
services is not sufficiently 
driven by the choice of users, 
let alone accountable to them. 
Instead, government chooses 
what to supply, and toe signals 
which a m a r i ne ! ai i l ew atiwilly 
generates are missing. Further- 
more, the efficiency of the pro- 
vider is difficult to measure. 
Attention Is focused on how 
much government spends 
rather than what tiig govern- 
ment gets for its money. 

The separation of purchaser 
and provider allows competi- 
tion among providers and per- 
mits greater measurement of 


efficiency. However, even to an 
Intexnal market”, such as the 
NHS operates, toe provider is 
accountable to its paymaster 
not to its user. It is disappoint 
tog that the secretary of state 
is quoted as saying that trusts 
should he accountable to her, 
not to fhp local 

community. 

Flans for toe fixture delivery 
of “public” services should cor- 
rect the imbalance between 
purchaser and user, and create 
structures which are market- 
driven and socially based, to a 
recent pamphlet for toe Fabian 
Society, we put forward ideas 
for restructuring NHS Trusts, 

along similar Hm« to those of 
Mr Griffiths. We proposed 
applying mutual principles to 


the delivery cf healthcare. Gov- 
ernment ahnnW guarantee, and 
subsidise, toe right to member- 
ship of a mutually stru ctured 
healthcare provider. The actual 
choice of provider would be 
left, so far as possible, with toe 
user. Contrary to perception, 
most "^private” healthcare is 
already provided by mutual 
suppliers. 

Thinking <m the delivery of 
“public" services needs to be 
more radical. Mr Griffiths' con- 
tribution to the debate should 
be welcomed. 

Malcolm Coles, 

Frier Welch, •' 

Malcolm Burlston Corporate 
Consultancy, 

2 Ridgmount Street, 

London WCIE 7AA 


Fair access key to financial markets 


From Mr Someth Whipple. 

Sir, Frances Williams missed 
a critical point In the article, 
“Unfinished Business to Uru- 
guay Round" (August 16). She 
characterised ongoing negotia- 
tions on financial services as 
“... in essence a bilateral argu- 
ment between the US and 
Japan. . From the US finan- 
cial community’s perspective, 
this is incorrect 

While it is true that some 
segments of the US financial 
service sector still face market 
access and national treatment 
issues in Japan, many of the 
significant problems confront- 
ing US financial services pro- 
viders are in the developing 
markets of Asia. Simply stated, 
US financial markets remain 
wide open to entry by foreign 


financial firms. On the other 
hand, US financial firms face 
barriers limiting their ability 
to penetrate markets abroad, 
to many promising markets, 
they are prohibited from estab- 
lishing or - expanding 
operations. Other problems 
run the spectrum from denial 
of access to local debt markets 
to discriminatory or unpub- 
lished licensing procedures. 

Singling out Japan misses 
tiie point of the financial ser- 
vices negotiations - a success- 
ful financial services agree- 
ment must achieve substantial 
liberalisation across a wide 
range of commercially impor- 
tant countries. At the conclu- 
sion of the round to 1993, vir- 
tually no meaningful 
commitments had been mad p 


Acceptance of offers on the 
table would have locked US 
markets p PHiwngntly 
open while foreign markets 
would have remained dosed. 

CSI Financial Services, a pri- 
vate sector coalition of US 
financial firms and associa- 
tions, remains committed to 
the position it has taken 

throughout the negotiations — 

open access to all financial 
markets sets the foundation for 
increased economic growth 
and job creation. That was the 
goal of the Uruguay Round, 
and continues to be toe goal cf 
tiie services negotiations. 
Kenneth Whipple, 
chairman, 

CSI Financial Services Group, 
818 Connecticut Avenue, NW 
Washington DC 20006. US 


Not yet last 
of a line 

From Mrs Florertce dikes: • 
Sir, I would question the 
statement to your -news item 
"End of the line” (August 27) 
about the test button A and B 
pay phone bring in tbs Shet- 
land Isles- 

During a holiday to 

the Small Isles to the toner 
Hebrides my h usband anti I 
visited the island of Soay .off 

the south coast: of Skye. There, 
cm August 1 1991 we tew a 
telephone box with buttons A 
and B and powered by solar 
panels. 1 suspect it is stUl 
there’. 

Florence Gfikes, 

Cretan Cottage, 

Eriska. road, Ledaig, 

Oban, Argyll ' 


Allegations against Body Shop lack any real evidence 


From Mr Robin Bines and 
others. 

Sir, As environmentalists 
with knowledge of both toe 
Body Shop and the ethical sec- 
tor, we wish to ask whey it 
appears that the FT, along 
with the rest of the media, is 
singling out the company and 
its credentials -for attack; and 
largely on the basis of what 
seem to us to be both unproven 
allegations and facts blown out 
of all proportion. 

There can surely be few peo- 
ple who really doubt that the 
Body Shop IS of thA lmwTinp 
fwiwpantpa in thn field Of social, 
ethical and environmental pol- 
icy. While there may be compa- 


nies winch will go to greater 
pains in one particular sector 
of business, you would be hard 
pushed Indeed to annthw 
company which goes as far in 
almost every aspect of its busi- 
ness. Which other company 
even thought of building a 
wind form to cover its energy 
needs in the UK? 

Of course the Body Shop is 
not perfect It has its share of 
disputes with franchisees, 
minor spills and business mis- 
adventures. It is, however, a 
good example of a successful 
yet caringcompany with prior- 
ities way beyond the usual 
profit motive, and to a world 
where business ethics are all 


too often sadly lacking. Yet 
your critical articles would 
suggest sizeable problems. 

So what purpose do these 
reports serve to a respectable 
papa- like the FT? Are they an 
attempt to engender debate 
about some of the serious 
issues feeing business today? 
Or do they merely perpetuate 
toe cynicism so often aimed at 
anyone who tries to inject a 
real sense of purpose into 
almost any field, be it politics, 
business or the arts? 

If there are genuine grounds 
for complaint, let ns hear real 

evidence; ft not, try attacking 
companies which have yet 
even to wunridar a rnriai, ethi- 


cal or environmental policy, let 
aimw implement it. 

We desperately need to 
encourage businesses, consum- 
ers' and green investors to 
develop the kind of ideas that 
the Body Shop espouses, and to 
put them into practice. Articles 
like those in your pages over 
the last few days can only 
make than all wonder whether 
it is really worth the effort 
Robin Bi nes, 

Sara Parkin, 

Jonathon Porrilt, 

Charles Secrett, 

Bernadette Vallriy, . 
cfo Charlton Court. 

Mouse Lane, Sttyrdng, 

West Sussex BN44 3DG ■ 







ycl ' 
j i u' 

~ 

!*-■* ’ .. 




ci):.- 
£$*.- 
■i :■ ■ 




it; : : - 
raiiv. • ■ • 

tr. i-L . 


.Herman pro 


'i 


" -i:- 

-23^ r ... 

' ” ’ ’ 1 - 

' 

!■■■ 

• -si- 

fSgSfe - 

:■ : 

.. . 


: * 

|5 a vv 'thd 

sTViJ. «... 

■ -■ . 

v 


g*A-v, 








financial times Thursday September i 1994 


15 


★ 


financial times 

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

Thursday September 1 1994 


The prize 
in Ulster 


It is still not clear that the 
ceasefire announced yesterday by 
the Irish Republican Army is per- 
manent, a necessary condition for 
political talks involving S inn wan, 
the IRA’s political wing. But the 
substance of the announcement 
seems unambiguous. There is a 
widely-held feeling on all sides in 
Northern Ireland that a new phase 
has begun, a turning away from 
the violence that has brought mis- 
ery to nationalists mid unionist s 
alike. 

That alone is cause for rejoicing. 
There are few parallels that can be 
drawn between Ulster and long- 
running conflicts in South Africa 
and the Middle East But events in 
these other places show that, 
when all sides are committed to 
finding a solution, there is a 
momentum in the peace process 
that sweeps away many of the real 
or imagined obstacles. 

That this point appears to have 
been reached in Northern Ire land 
Is a tribute to effective co-opera- 
tion between the UK and Irish 
governments. Mr John Major 
deserves credit for placing a solu- 
tion in Ulster on his list of priori- 
ties. He has made clear that 
Britain has no strategic interest in 
Northern Ireland apart from pro- 
tecting the right of its people to 
determine their future. He has 
also taken risks, most notably in 
conducting secret exchanges with 
Sinn F6in leaders. Those risks 
appear to have paid off, thanks to 
his cod itoterminaHnn under fire. 

Mr Albert Reynolds, the Irish 
Taoiseach, has also been prepared 
to take risks. In last December's 
Downing Street Declaration, be 
acknowledged the right of the peo- 
ple of Northern Ireland to r emain 
in the UK unless they decided oth- 
erwise. He also undertook to 
amend file claims in the Irish con- 
stitution to the north - essential 
in reassuring unionists. 

The peace process will not be 
smooth. There will be those 
among both file republican and 
the “loyalist” communities who 
will try to disrupt it. There may be 
a breakaway from the IRA, with 
diehards seeking to continue the 


violence. The process will have to 
survive whatever “spectaculars' 
are thrown up at a time when 
trust may still be in short simply. 

There is also the fear of betrayal 
among the unionist majority that 
must be constantly a«ri convinc- 
ingly assuaged. It was their oppo- 
sition that derailed two previous 
attempts at constitutional settle- 
ments involving the Irish Repub- 
lic. The main Unionist party, led 
by Mr Janies Molyneaux, has sen- 
sibly accepted the assurances of 
the Downing Street Declaration on 
Northern Ireland's right to self-de- 
termination. But the Reverend Ian 
Paisley’s Democratic Unionists 
seem to be flirting with the idea 
that any peace must involve unac- 
ceptable concessions to Dublin. 

Now, therefore, is not a Htha for 
complacency but for renewed 
efforts to lYiairifaiin the momen- 
tum. Mr John Hume, leader of the 
moderate nationalists, advises 
throwing away the formal time- 
table for bringing Sinn F6in to the 
conference table. This advice 
should be politely turned down. 
The quarantine period of three 
months after a permanent cease- 
fire Is the least that win be accept- 
able to the unionists. 

But there is scope to provide 
immediate benefits to all the peo- 
ple of Northern Ireland that will 
carry forward the peace process. 
One priority must be to scale 
down the militar y presence to the 
minimum level compatible with 
protecting all sections from mav- 
erick terrorists. Another is to lift 
the absurd ban on broadcasting 
the voices of Sinn F^zn members 
which has done so modi harm to 
the UK's reputation abroad. A 
peace process involves a dialogue, 
and a dialogue is impossible if one 
side cannot be heard. 

Finally, amendments to articles 
2 ami 3 of the Irish constitution to 
remove the un qualified rlnimH to 
the north are promised as part of 
a final settlement Bringing for- 
ward the rHang»a would bolster 
unionist confidence. The ceasefire 
dpmandg further risks on all sides 
to win the bigger prize of lasting 
peace in Ireland. 


German prospect 


Germany is recovering from 
recession. But what sort of growth 
will it manage in the medium 
term? That is the question raised 
by this year's excellent survey 
from the OECD. It is an important 
question, not just for Germany, 
which needs rapid growth to cope 
with the burden of unification, but 
for Europe. 

East Germany is - and will 
remain - a huge burden, despite 
GDP growth of 7.1 per cent last 
year and an OECD forecast of 
another 9J. per cent in 1994. This 
growth has only been made possi- 
ble by net transfers of DM130bn 
<£S4bn), 4.6 per cent of west Ger- 
man GDP. last year. These trans- 
fers, which amounted to 47 per 
cent of east German GDP. have 
made it possible for exports from 
the new LSnder to be less than a 
fifth or their imports. The need for 
transfers, which this ratio reveals 
so starkly, is unlikely to change in 
the near future. 

At least the fiscal damage has 
been contained. The general gov- 
ernment deficit as a share of GDP 
is expected to be brought down to 
23 per cent this year. Even the 
overall public sector borrowing 
requirement is forecast at 4.6 per 
cent, not unreasonable in the cir- 
cumstances. While the ratio of 
public debt to GDP will breach the 
Maastricht treaty guideline of 60 


per cent in 1995, the OECD argues 
that further increases can be 
halted by a "combination of sus- 
tained medium-term growth and 
active programmes of fiscal con- 
solidation". But, inevitably, a 
price has been paid. Germany's 
effective tax rate is higher than 
that of any leading industrialised 
country, except France. 

For all its strengths, the econ- 
omy may not be able to bear this 
burden, that well. The growth of 
total factor productivity has 
slowed markedly since the 1960s; 
unemployment has risen cycle-by- 
cycle; in the 1980s, productivity in 
manufacturing grew at less than 
half the rate of the European 
Union as a whole; the shares of 
German expats in markets out- 
side tim EU have declined mark- 
edly since 197$ and wage costs 
seem out erf line with productivity, 
by comparison with the US and 
Japan. 

The German economy is, in 
short, showing signs of senes- 
cence. It needs to be revitalised, 
for its own sake and for that of the 
European economy as a whole. A 
combination of tough control over 
spending, lower taxation and 
structural reforms - privatisation 
and deregulation - is urgently 
needed. The OECD report shows 
the way. Will Germany dare to 
follow? 


Russia withdraws 


’s ceremonies, m a rking 
withdrawal of Russian 
m Germany and the Bal- 
celebrated the peaceful 
of central Europe from 
Army and drew a line 
second world war. IBs- 
race again, given Russia 
any the chief respousi- 
he peace, prosperity and 
f central Europe, 
tely. the Germany that 
cd from two world wars 
Did War is a stable, dem- 
intiy firmly anchored in 
the European Union. 
>, Russia seems cosunlt- 
ategrating itself into the 
tunny aral repairing the 
aused by 75 years of 
id tyranny. The litmus 
hese countries' future 
will be Moscow’s con- 
Hingness to honour the 
nee of the Baltic states 
d Germany’s toleration 
ir frontiers that leave 
brmer Pomerania and 
Polish hands, 
nd Germany have much 
■om growing economic 
and self-confidence m 
il European and Baltic 
ch. all too often in toe 
. tteen crushed by the 
jns of their neighbours, 
oncert- But the greatest 
, m the decline m the 


power and influence of the Red 
Army could be Russia itself 

Under communist rule the 
Soviet Union became the most 
militarised society on earth. The 
health and wealth of Soviet citi- 
zens were sacrificed in the vain 
effort to wear down the west 
Now, at last Russians and citizens 
of other former Soviet states have 
an opportunity to use their talents 
and resources to repair the envi- 
ronmental, economic, social, phys- 
ical and psychological scarsteft by 
the ill-conceived communist exper- 
iment. 

Nostalgia for the imperial past 
is misplaced. The decks have been 
cleared for Russia to concentrate 
on its own affairs. So far as its 
security is concerned, the main 
tasks are to keep its nuclear weap- 
ons under watchful control and to 
replace the sprawling conscript 
army of the past with a smaller, 
better equipped and trained pro- 
fessional force. 

The main challenge, however, is 
to build an economy responsive to 
consumers, whose needs were 
neglected for decades. The old 
economy produced world-class 
rockets but terrible shoes. Rus- 
sia's military withdrawal from 
Europe should free up- the mm 
and resources needed to shift the 
balance at last towards a produc- 
tive civilian economy. 


F or Sweden's phalanx of 
big International compa- 
nies, the recession is 
emphatically over. 

In contrast to the atmo- 
sphere of crisis over the financial 
deficit in the country’s public sec- 
tor, companies such as Volvo, Elec- 
trolux, Ericsson and Saab-Seania 
have over the past two weeks 
reported a gush of half-year profits 
after three of the toughest years 
Swedish industry has endured since 
the 1930s. 

As industry pulls out of recession, 
one striking feature has become 
clear. In spite of dire predictions to 

the c on trary from the markets, the 

industrial dominion controlled by 
the Wallenberg family has not only 
survived. Mr Peter Wallenberg, 
doyen of its fourth generation, has 
extended its dominance of Swedish 
industry to unprecedented levels 
and entrenched the family as 
Europe's most powerful industrial 
dynasty. 

The core companies in the Wal- 
lenberg “sphere” (the family, which 
rarely has majority control of a 
company, prefers to call it an asso- 
ciation of companies rather thar^ an 
empire) had a combined annual 
turnover last year approaching 
SKr550hn (£46-6bn). Together, these 
companies ma t ( * up about 40 per 
cent of the market capitalisation of 
the Stockholm stock exchange. 

How have the Wallenbergs so 
strengthened their position? And as 
theyapproach a handover from one 
generation to the next - with Peter 
Wallenberg now 68 and his son 
Jacob and nephew Marcus being 
groomed to succeed him - can they 
maintain their preeminence? 

Between 1990 and 1993, toe chief 
question was whether the empire 
could hold together under the pres- 
sure of recession. 

Mr Peter Wallenberg, who has the 
world-weary look of an old cam- 
paigner, admits it was a rough 
period. “All In all, ft put the organi- 
sation to a very tough test." he said 
in an interview with the FT. 

As recently as in early 1993, toe 
outlook was still grim. Investor, the 
holding company chaired by Peter 
Wallenberg which groups most of 
the main famil y shareholdings, 

remained burdened with debt of 
more than ?ibn. Core companies 
such as Store, Europe's largest for- 
estry group, and SKF, the company 
which invented ball-bearings, had 
reported losses in 1992 of SKrL42bn 
and SKrl.77bn respectively. 

SaafrScanla, the vehicle and air- 
plane maker bought out by Investor 
In 1991 as an anticipated source of 
cash How, bad semi profits slump, 
as had other stalwarts such as Elec- 
trolux, the world’s leading house- 
hold equipment maker. Skandtna- 
viska Rnsirilda Hanken, historically 
the family’s financial flagship, 
founded in 1856, was almost 
swamped by bad loans that sank it 
deep into operating losses of 
SKrS.4bn in 1992. 

Sceptics saw cracks in the Wal- 
lenberg edifice. Speculation was rife 
that a pattern of marginal disposals 
and portfolio reshuffles would fed 
to satisfy the empire's capital needs. 
A strategic disposal was keenly 
anticipated by toe markets. 

The subsequent transformation 
owed something to toe change in 
Sweden's economic fortunes follow- 
ing the 25 per cent devaluation of 
the Swedish krona after its flotation 
in November 1992. But the Wallen- 
berg companies helped by cracking 
down on casts, slashing as much as 
20 per cent erf their workforces. By 
the end of last year, toe crisis was 
over with most of the companies 
back on a healthy profits path. 

The balance sheet of Investor, the 
key holding company, has been 
transformed. Piecemeal selling of 
shares in a number of companies 
rather than the disposal of a single 
large stake drove down debt from 
SKriMbn at the end of 1992 to 
SKr&Sbn a year later. This year the 
group has bolstered its position fur- 
ther with a SKr3.45bn bid for its 
Export-Invest stablemate, essen- 
tially a giant share issue. 

Further strengthening is likely as 
dividend flows Into the group's cof- 
fers pick up. Bo Berggren, Investor 
vice-chairman and a Wallenberg 
lieutenant, considers "the Investor 
balance sheet today is probably as 


Coups I have 
known 

■ At last Italians know whom to 
thank for saving thmr country from 
a bloody coup d’dtat Why, Umberto 
Bossi of course, founder erf the 
populist Northern League. Not that 
anyone actually knew of a threat of 
armed rebellion until the 
loquacious Bossi spilled toe beans 
to some hacks on Monday. 

Back in 1987, 300,000 warlike 
League supporters were poised to 
stream down from the valleys 
around Bergamo, a hitherto 
peaceful northern Italian town, ami 
march on Rome. Their intent? To 
depose Socialist prime minister 
Bettlno CraxL Only the 
intervention of Bossi The Wise, 
preaching the wisdom of democratic 
opposition as the best tactic for 
unseating a corrupt old political 
regime, saved the day. Earn, seven 
years later, Craxi is in exile in 
Tunisia, and the League is in 
government 

Just a slight snag with this 
heartwarming tale. That year, the 
League polled fewer than 28^00 
votes in the Bergamo area. Indeed, 
excluding old people and children, 
there were only 667,000 potential 
warriors living in the entire 
province. So how come this 
fearsome revolt passed unnoticed 
by either the local authorities or the 
bergamaschi themselves? 

Yesterday Bossi was furiously 
denying be had said anything of the 


The family firm 
fights back 

In the first of a series, Hugh Camegy and 
Christopher Brown-Humes explore the 
strengths of Sweden's Wallenberg dynasty 



Wallenberg family 


rx.i 


Volvo 


j Total assets 

VSKre-': 1 

1 3 E Ban***? 

413 1 

• • Net worth (SKrbn) 

Investor' 

38 

1993 turnover 


A$«t-A53’ 

210 

Astra 

23 

v.U£*Ci‘0 

13 

EOcti'O-’l,.-: 

ICO 

Eraser:" 

63 

GtiP'/Oi'O 

9 

incenr-ve . 

12 

Saab-Scsria 

28 

SKF 

29 

StCfCi' 

50 9 

Total 

643 


391 1 


JfeS cr--#' y. y V B.; 

• bb':"'" . [ii, 

# •' : 

- Total ' ■ las' 


1993 tomoyer{SKrtjn] 
■Vofcd- , 107 
BCR - «.• ■ \'l a 

■ i‘. It-r ■ • A. . ' . 

^ •(, ■ ■ ». % " 
•_ a a '-*,..'.".* ... 

Total iso 


* Area is luff-omnor of Asea Brawn Bovori ' . ' ■ 

-* Ericsson a. >oWty coMTOfl*ci b* ftwfttfa, & Ht*xiflfe4wri<w} \ 

-* ROrtvB & Secwuro adnwfeter asset* tstan b«*. ot Ncsdbenkart X Getabank 


Svensfca 

Handotebanken 

'Total -assets (SKrbn) 
Handetsbanken 444 


lOSriluqpovar fSKrton) 

■Aqa , '• it 
eitoaawr •• . 63 
/fr&oscancfia “ ! 5 
SCA.. SJi 

•••• • v ‘ 



Total 11# 

#• • + » M.*% 


Bourn Damp** rep“t* 


strong as it has ever been." 

It was not just market conditions 
and restructuring that helped the 
family pull through. The family was 
able to exploit Swedish ‘dual-share’ 
rules to raise money from disposals 
without any Loss of control in the 
target company. 

Swedish rules allow equity to be 
split between A and B shares with 
voting power heavily weighted to 
the former. This system has long 
enabled the Wallenbergs to control 
companies often with very little 
capital commitment 

Much the most significant factor 
in underscoring the dominance of 
the Wallenberg family occurred, 
however, at Volvo where for 20 
years, Mr Pehr Gyllenhammar bad 
striven to create a industrial empire 
to rival toe Wallenbergs. 

Mr Gyllenhammar was deposed in 
December 1993 by a shareholder and 
management revolt against his plan 
to merge Volvo car and trucks with 
France's Renault His strategy was 
then quickly abandoned by Volvo’s 
new board, chaired by Bert-Olof 
Svanholm of ABB and including 
Bj&m Svedberg of S-E Banken, both 
from the Wallenberg “sphere’’. 
Instead, Volvo decided to sell off 
SKr40bn of non-core investments. 

The Wallenbergs, back on the 
offensive after toe recession, moved 
swiftly. Within a week of Volvo 
announcing its strategic U-turn in 
the spring, Incentive bought out 
Volvo's controlling shareholding in 
Cardo, an investment group which 
inplnrfiwi Gambro, a medical equip- 
ment supplier that matched the 
Wallenbergs' evolving focus on 
technology-based growth industries 
for future investment 

“The Wallenbergs manoeuvred 
marvellously over Volvo after the 
Renault deal collapsed," says the 
chief executive of one of Sweden's 


top non-Wallenberg companies. 
"They got Volvo where they wanted 
it without paying a penny and now 
they are carving it up.” 

Mr Peter Wallenberg rejects any 
suggestion that he deliberately 
sought to exploit the Gyllenhammar 
debacle. But it is unarguable that 
events since have enhanced the 
Wallenberg dominance. 

A principal strength of the Wal- 
lenbergs has been their record in 
choosing skilled managers, who in 
turn have benefitted from having 
dedicated owners who understand 


‘The Wallenbergs got 
Volvo where they 
wanted it without 
paying a penny 
and now they are 
carving it up’ 


International markets and invest 
for the long term. 

Another factor that Is often 
underestimated is the determina- 
tion of Peter Wallenberg himself; 
who succeeded his formidable 
father Marcus in 1982 despite the 
latter’s dim view of his ability to 
become a leader with “ice in his 
belly". Mr Wallenberg still talks bit- 
terly of the way he was written off 
in his early days in charge, when 
now-forgotten 1980s whizz-kids were 
nlycl'mg his vulnerable empire. 

“I am surprised when people say 
This is the beginning of the end’," 
he says. "Do you think we are just 
sitting here looking at tb' n gs going 
wrong?” He clearly feels his job is 
still not complete. Asked what chal- 
lenges remain, he says: “To prove 
that we are not as vulnerable as 
some people seem to believe. I think 


that is very important" 

The first task now may well be to 
conduct some internal reorganisa- 
tion. The group's structure, concen- 
trated round Investor and Incentive, 
an Industrial operating group, looks 
cumbersome. For example, profits 
from Asea Brown Boveri, the Swiss- 
Swedish engineering giant half- 
owned by Asea, must first swill 
through Asea and Incentive before 
they reach Investor. 

Saab-Scania, which is 100 per cent 
owned by Investor, may also be re- 
shaped- Few would be surprised if 
toe company was either re-listed or 
if some of its defence and vehicle 
operations ended up in joint ven- 
ture partnerships mirrored on the 
collaboration with General Motors 
at Saab Automobile. 

But there are other challenges on 
the horizon which will test the next 
generation - Jacob and Marcus, 
working respectively in senior posts 
in S-E Banken and Investor. 

Most obvious, perhaps, is the 
financial markets’ perception that 
the Wallenberg portfolio of compa- 
nies is over-dependent on low- 
growth cyclical industries. 

Even under the dual-share struc- 
ture, which acts as a built-in 
defence against an outside takeover, 
the empire could yet prove vulnera- 
ble to foreign predators - especially 
given the deregulation of toe Swed- 
ish share market in recent years. 

To counter any impression of vul- 
nerability, the Wallenbergs stress 
they are again on the offensive, 
looking for opportunities in growth 
industries and casting their gaze 
more outside Sweden. 

Senior famil y members talk of an 
“evolution" in the sphere in which 
their traditional willingness to fake 
a long-term view Is preserved. But 
there are signs that financial 
deregulation is putting pressure on 


Observer 


sort. But it had been too good a 
story to miss and Bossi still graced 
the front page of almost every 
Italian newspaper, while the 
Bergamo magistrates duly opened a 
file on local armed uprisings of the 
late 1980s. 


Wakey-wakey 

■ No sign of Des Wilson going 
gently into that good night The 
veteran lobbyist is kissing farewell 
to PR giant Burson-Marsteller by 
launching one last campaign - to 
bring the UK into line with 
European clock-watching. 

Wilson is taking over as chief 
spin-doctor at BAA, owners of 
Heathrow airport et al, where, no 
doubt be wffl be doing a lot of 
jet-setting. Is the daylight campaign 
thus no more than a clever rase to 
ensure he doesn't have to get up at 
unearthly hours in order to make 
continental morning meetings? 


Tiny matter 

■ Getting rid of Tiny Rowland may 
be easier said than done. It’s one 
thing stripping him of his executive 
duties, but it may be quite another 
persuading him. to vacate his office. 

Dieter Bock, the German 
financier determined to sack bis 
joint chief executive, was recently 
aghast to find Paul Spicer still 
firmly installed at the Lonrho's 
Gheapslde headquarters- The 
former Lonrbo deputy chairman 



The place is foil of Rail trade 
managers' 


was supposed to have retired early 
this year. But apart from having 
procured himself a new desk, Spicer 
was acting as if nothing had 
changed Quite hew Bock had 
overlooked Spicer's continuing 
presence for so long remains a bit of 
a mystery, but, now alert to the 
problem, he has apparently vowed 
he will make future personnel 
changes stick. We shall see. 


Chickens feed 

■ The UK prime minister, John 
Major, will soon be getting an extra 
£70 a week (before tax), thanks to 
the 4.7 per cent pay rise British MPs 


recently awarded themselves, 
taking the prime minister from 
£78,292 to £81,971. 

Pretty paltry. His co-celebrant in 
yesterday’s historic Ulster 
developments, Irish prime minister 
Albert Reynolds, is getting a 16.9 
per cent Increase - from IR£82,020 
to IR£95,920. Irish President Mary 
Robinson’s salary will rise by 10 per 
cent to B&L05.512, while ministers 
and judges will have to get by with 
an increase of 17.1 per cent 

Not had. Mind you, ordinary TDs 
(Irish MFS), will have to make do 
with just 3.8 per cent more, taking 
their annual whack to nt£32,700. 
Hardly enough to stand a round in 
Dublin these days . . . 


Jobsworthy 

■ Jimmy Lai, the Hong Kong 
businessman who was recently 
forced to relinquish his position at 
the helm of retailer Giordano - 
following a scathing attack on Li 
Feng, the Chinese premier - is 
entering the world of newspapers. 

Lai, who already owns Next, toe 
successful weekly where he 
lambasted Li and China's 
communist party, is planning to 
launch a new Hong Kong daily fry 
next spring. Rumour has Lt that he 
will call it either Apple or Ptnggrn, 
which is Chinese for apple. 

Apple, Next . . . sounds familiar. 
Steve Jobs founded Anile and, after 
being forced out, went on to found 
Next Lai, an aficionado of 
philosopher Karl Popper's The Open 


the companies to concentrate more 
on maximising investors' 
short-term returns. 

One dramatic step has already 
been taken, in Incentive's $lbn bid 
in May to gain control of Gambro, 
the medical equipment specialist 
Incentive then sold its controlling 
share In Esab, the world's biggest 
welding equipment supplier, to 
Charter of the UK. The swap tilted 
Incentive decisively away from a 
traditional cyclical industry to a 
fast-growing technology sector. The 
trend will continue, says Mikael Lil- 
ius, Incentive's chief executive. 

T he Wallenbergs have 
also in recent months 
talked of looking abroad 
for new investments as 
part of the evolution. 
Sweden Is chronically short of 
“growth” companies, and the family 

is also conscious of the political sen - 

siti vibes that attach to their domi- 
nance of the corporate sector. Peter 
Wallenberg says: "This is a rather 
small country and industrially we 
represent a rather sizeable share. I 
think we must be observant of the 
world around us.” 

Investor has said it envisages 
building up its foreign portfolio to 
10 per cent of the group's total 
Investments. A start was made 
through the Export-Invest takeover, 
which brought investor holdings in 
Roche, toe Swiss pharmaceuticals 
group, and Alcatel Alsthom of 
France. The group is also paying 
closer attention to South-East Asia 
and the Far East in its trawl for 
investment opportunities. 

This is bound to Intensify ques- 
tions about the underlying indus- 
trial logic of the Wallenberg sphere. 
The ioose-knlt nature of the empire 
makes the individual companies 
stronger, family members insist “I 
don’t even know whether Saab or 
Scania is buying SKF ball-bearings 
for their cars and trucks,” says 
Peter Wallenberg, “The basic situa- 
tion between these industries is 
arms' length. No deals or favours 
for one another.” 

Outsiders conclude that the driv- 
ing force of the empire is more the 
family's determination to keep con- 
trol than about creating value. “The 
thing they care most about is pro- 
tecting their heritage,” says one 
Swedish corporate financier. 

The Investor investment record 
suggests there is something to this 
view. Its share portfolio has done 
better than the Stockholm stock 
exchange in six of the last 10 years 
and its annual total yield (defined 
as dividends plus share price appre- 
ciation) has averaged 17.2 per cent, 
compared with 15.0 per cent for the 
stock exchange. But the outper- 
formance is entirely due'to Astra, 
the high-flying pharmaceuticals 
group. 

Elsewhere, the Wallenbergs have 
often been prepared to pay a high 
price to retain control, as when 
Investor paid a hefty premium to 
buy out Sven Olof Jahansson, a 
financier who had built up a 22 per 
cent stake in Saab-Scania and 
demanded a seat on the board. 

There are also doubts as to 
whether they are prepared to take 
the hard-headed decisions needed to 
re-shape toe empire significantly 
away from its dependence on low- 
growth industries. The empire did 
sell its entire stake in packaging 
company Alfa Laval to rival Tetra 
Pak In 199L But as one ex-Wallen- 
berg director says: “You can't see 
Peter Wallenberg selling out of 
Atlas Copco [the engineering group] 
where he worked for 25 years." 

With an average of 25 per cent of 
the capital of Wallenberg companies 
now in foreign hands, the empire Is 
far more susceptible to this kind of 
assessment than in the past The 
perception that a company is not 
delivering maximum returns could 
lead to greater share price volatility 
- perhaps even takeover bids, 
although they face the barrier of 
the weighted share structure. The 
tension between such pressures and 
the Wallenberg’s traditional style is 
among the IP any challenges faring 
Jacob and Marcus Wallenberg as 
they prepare for the day when Peter 
steps down. 

A second article will be published 
tomorrow. 


Society and Us Enemies, is also a fen 
of Jobs. 

Why not save himself the trouble 
of thinking up titles for the new 
paper and just call it Jobs for the 
Boys? 


Vasco da gaffa 

■ Premier Li may be forgiven for 
thinking tha t toe local press has It 
in for him. In the Portuguese colony 
of Macao, hacks have just landed an 
uncomfortable exclusive, c/o toe 
office of General Vasco Rocha 
Vieira, toe governor. 

His officials have compiled a 
profile of Li, describing him as 
arrogant and incompetent Of 
course, ft was intended for the 
general only. But you can't keep a 
grubby hack down. 

Very poor show, not least because 
the general is now on an eight-day 
official trip to China, where today 
he will meet LL Even more poor 
show, Macao - a Portuguese colony 
since 1557 - is due to revert to 
Chinese rale in 19®. 

Still, five years should be enou gh 
for the general to find himself 
another job. 


Dr Fustian 

■ This one comes via comedian 
linria Smith, who has been g oing 
down a storm at the Edinburgh 
Festival She describes herself as a 
dyslexic satanist: M i worship the 
driveL" 



16 




! SENIOR 
\ FLEXONICS 


A world leader in 
““ flexible connectors 

Tel: 0923 77SS47 
A Division af Senior Engineering Group pic 


FINANCIAL TIMES 

Thursday September 1 1994 



Japan unveils YlOObn cultural 
project to atone for war record 


By WHam Dawkins in Tokyo 

Japan took a far ther significant 
step yesterday in its efforts to 
atone for second world war 
aggression with a pledge to spend 
YlOObn ($1.01bn> on historical 
research and cultural projects to 
promote peace in Asia. 

“It is imperative for us Japa- 
nese to look squarely to our his- 
tory with the peoples of neigh- 
bouring Asia and elsewhere,” 
said Mr Tomiichi Murayama, the 
prime minister, who yesterday 
unveiled the 10-year programme, 
beginning next year, the 50th 
anniversary of the end of the 
war. 

However, a foreign ministry 
official emphasised that the 
handout marked no change in 
the policy of refusing further offi- 


cial government compensation 
for individual war victims and 
their family Japan argues that 
this was formally settled by the 
1951 San Francisco peace treaty. 

The new money is instead ear- 
marked for the creation of a his- 
torical war document centre in 
Japan, vocational training cen- 
tres for women in neighbouring 
Asian countries and youth 
exchange visits. 

As a result. Mr Murayama's 
crhamp js unlikely to defuse con- 
tinuing claims from British and 
Dutch prisoners of war and Kor- 
ean women forced Into prostitu- 
tion by invading Japanese troops. 

These claims are irritants to 
Japan's painstakingly slow 
attempt to raise its profile in 
international affairs and to bol- 
ster relations with increasingly 


valuable Asian neighbours. 
South-east Asia has formed 
Japan's largest export destina- 
tion for the past three years and 
is its fastest growing investment 
location. 

Three successive Japanese 
prime ministers over the past 
year have issued various state- 
ments of regret and apology In a 
campaig n to normalise relations 
with Asia. Mr Murayama 
returned recently from a four- 
country Asian tour, largely 
devoted to trying to atone for the 
past 

The effect of Japan’s official 
apologies has been spoiled by an 
outspoken lack of contrition from 
Japan’s political right wing, 

including two cabinet minis ters 
sacked over the past six months 
for trying to justify Japan’s war- 


time actions. Undeterred, Mr 
Murayama yesterday repeated 
apologies to women forced into 
prostitution and reiterated “pro- 
found remorse' 1 for suffering 
caused by Japan. 

He also raid the government 
aimed to settle “as soon as possi- 
ble” the plight of Koreans 
stranded in the Busman island of 
Sakhalin after the war and wages 
owed to Taiwanese soldiers in the 
Japanese army, two other con- 
straints on Japan’s relations with, 
its Asian neighbours. 

The government estimates that 
43,000 Koreans, used for hard 
labour by Japanese forces, were 
left in Sakhalin when it reverted 
to Moscow's hands after the war. 
It 2.4m ftlahnu from Taiwan, 
ese for savings and unpaid wages 
worth Y60Om at 1945 prices. 


Kohl’s smiles fail to hide 
Moscow-Berlin divisions 


By Judy Dempsey in Berfln 

German chancellor Helmu t Kohl 
and Russian president Boris 
Yeltsin congratulated each other 
yesterday on the departure of 
Russian troops from Germany 
after a presence of five decades, 
but the lingering divide between 
the countries echoed in their 
speeches. 

Despite the smiles Mr Kohl 
was determined to use the occa- 
sion to boost his re-election 
chances next month. He was 
elected in 1990 after convincing 
Russia it would not be threat- 
ened by German nnlficaHmi- 

A shaky Mr Yeltsin frequently 
referred to the role of Russian 
troops in saving Germany from 
the “tyranny and terror” of Hit- 
ler and also to tiie 12m Russians 
who had died while ridding 
Europe of the Nazis. 


Mr Kohl reminded the audi- 
ence at the Schauspielhaus, east 
Berlin’s beantifnQy restored con- 
cert hall, that it had, in fact, 
been “the pact between the dicta- 
tors Hitler and Stalin that 
removed the last barrier to the 
war which the National Socialist 
tyranny unleashed shortly after- 
wards”. 

And he explained why he had 
opposed the Russians joining in 
next week's ceremony saying 
farewell to British, US and 
French troops from Berlin. 

“Terrible harm was done to 
the Russian people by the Ger- 
mans and in the nama of the 
German people . . . bnt we Ger- 
mans were destined to live 
through the painful division of 
onr country,” he said. 

“The blockade of Berlin, the 
totalitarian regime in the east of 
onr country, the Wall and 


barbed wire were a heavy and 
lasting burden on onr relations.” 

Mr Yeltsin tried another tack. 
He praised the Conference on 
Security and Co-operation 
(CSCE), a non-military organisa- 
tion grouping western, eastern 
Europe and the former Soviet 
republics. This, he said was “the 
real forum for stability and secu- 
rity from Vancouver to Vladivos- 
tok". 

Mr Kohl did not mention the 
CSCE. Instead, he said the 
“signed agreements between 
Russia and Naio cm Partnership 
for Peace, and on co-operation 
with the European Union are 
essential building Mocks for the 
European House.” 

German defence officials duti- 
fully nodded in agreement, but 
the divide between the two lead- 
ers was by now painfully appar- 
ent 


Italian coalition split reopens 
as Bossi attacks Berlusconi 


By Andrew Hffl in Milan 

Mr Umberto Bossi, leader of 
Italy's populist Northern League, 
yesterday reopened a damaging 
split in the Italian government by 
accusing Mr Silvio Berlusconi, 
Italy’s prime minister, of trying 
to cut the League out of the rul- 
ing coalition. 

An agitated Mr Bossi, inter- 
viewed on television as he 
returned from holiday in Sar- 
dinia, also claimed that Mr Ber- 
lusconi had asked President 
Oscar Luigi Scalftro for permis- 
sion to hold new elections. This 
was dismissed by Mr Berlusconi 
"I won't waste time denying non- 
sense,” Mr Berlusconi was 
reported as saying. Til have to 
propose a tax on chatter.” 

Mr Bossi's comments demon- 


strate that three weeks' holiday 
has not healed the rift between 
the league leader and his coali- 
tion allies. “It’s not possible to 
offload the league," Mr Bossi 
said, pointing out that his was 
the principal parliamentary 
party. "At tihds point perhaps we 
ought to give Berlusconi an aba- 
cus, If he goes on fooling himself 
that It’s possible to throw out the 
league before we've passed an 
antitrust law or a new constitu- 
tion," he added. 

Mr Gianfranco Firu, leader of 
the third main coalition partner. 
the far-right National Alliance, 
said that Mr Bossi’s behaviour 
was “puerile". 

At the beginning of August, Mr 
Berlusconi and Mr Bossi held all- 
night discussions to patch up 
their differences. The next day 


they appeared on Italian televi- 
sion. together in an attempt to 
demonstrate to nervous financial 
markets and the Italian people 
that there were no hard fadings 
between them . 

In the past three days, how- 
ever, Mr Bossi has been incensed 
by reports that he claimed to 
have prevented an armed rebel- 
lion by league supporters in 
1986-87. Mr Bossi has blamed 
“anti-democratic” reporters for 
exaggerating and distorting his 
comments, and has threatened 
legal action against television 
and newspapers for spreading 
"disinformation”. 

Mr Bossi's intervention is ill- 
timed, given that financial mar- 
kets are just recovering their 
poise following last month’s rise 
in Italian interest rates. 


CDU plan 
for EU 
reform 

Continued from Page 1 

Democrats (CDU) in the German 
Bundestag, and Mr Michael 
Gloss, his counterpart in the 
Bavaria-based Christian Social 
Union, the coalition partner. 

Its presentation comes just two 
days after publication of an inter- 
view by Mr Edouard Balladur, 
the French prime minister, in 
which he spelt out a similar 
vision of a multi-speed Europe. 

It is dear that the political 
leaders in both Paris and Bonn 
have decided that their ideas an 
the next phase of EU reform - 
the follow-up conference to the 
Maastricht treaty scheduled for 
1996 - must now be brought into 
the open. That is in spite of the 
sensitivity of many of the issues 
involved, given the looming refer- 
endums on EU membership in 
Finland, Norway and Sweden. 

However, the fact that both Mr 
Kohl's CDU and Mr Balladur are 
now giving their open blessing to 
the concept of a multi-speed Com- 
munity may ironically make 
their vision of a “federal” Europe 
easier for British Euro-sceptics to 
swallow. 

Mr John Major, the British 
prime minister, has already 
endorsed the idea in principle. 

In his interview Mr Balladur 
said that enlargement to include 
the newly emerging democracies 
of central and eastern Europe 
would inevitably involve a degree 
of “diversification" in the 
structure of the EU, at least tem- 
porarily. 

“For many years, no doubt, the 
European structure will involve a 
homogeneous central core, con- 
sisting ewwnHaliy of Fr ance and 
Germany, obeying nmmnon rules 
in all areas of co-operation. 
Around it, wffi he countries ruled 
by differing laws, depending on 
whether they concern monetary 
matters, social affairs, defence, 
trade relations, financial rela- 
tions, or foreign policy,” be said. 


FT WEATHER GUIDE 


Europe today 

Showery rain associated with an area of 
low pressure over Uw Benelux will affect 
eastern England, foe North Sea, Denmark 
and Poland. Some rafo wffl be 
accompanied by thunder storms, 
especially over Denmark and Poland. 
North-west France wffl have moderate 
rain. Thunder storms will develop In the 
aft e rnoon In south- west France, the 
southern Benelux and foe Alps. North- 
west UK, central France, Germany and 
south-west Scandinavia can expect a 
mixture of cloud and sun. it will be sunny 
in central Scandinavia but there will be 
rain and showers in the north. Eastern 
Europe will have only a few gfimpses of 

sunshine. 

Five-day forecast 

A high over Scandinavia vffl move 
towards western Russia, allowing 
unsettled conditions to develop in 
Scandfaavia this weekend Western 
Europe wffl be affected by low pressure 
from the Atlantic. Rain wfll develop over 
the UK by the weekend and will spread to 
the Benelux, northern France and 
southern Scandinavia Southern Ewope 
wifl remain suraty. 

TODAY’S TXMPBRATUmS 



Situation ar 12 GMT. 7ompMCV«* far day. Forecasts by Metso Consult ot tfw NeOwlancJa 



Maximum 


cloudy 

2S 

Caracas 

fowl 

31 



Betted 

bur 

16 

Cardiff 

shower 

16 

Abu Dhabi 

Ur 

40 

Belgrade 

sin 

30 

Casablanca 

Mr 

24 

Accra 

show 

20 

Berth 

ntfri 

21 

Chicago 

fair 

17 

Algiers 

fatr 

33 

Bermuda 

show* 

32 

Cologne 

fair 

£0 

Ametertiam 

Hr 

IB 

Bogota 

thund 

18 

Dakar 

tatr 

30 

Attww 

aun 

32 

Bombay 

rah 

28 

Dallas 

dund 

32 

AIM 

found 

31 

Brussels 

shower 

IB 

DeW 

Mr 

34 

R Arw 

m 

12 

Budapest 

sun 

30 

Dubai 

sun 

38 

Bfoam 

Mr 

17 

Chagen 

shower 

17 

Dublin 

Mr 

IB 

Bangkok 

rato 

31 

Cairo 

sun 

32 

Dubrorik 

Mr 

28 

Baroatona 

shower 

26 

Cape Town 

Mr 

21 

Edinburgh 

Mr 

16 


W c can t change the weather. But wo can 
always take you where you want to go. 


Lufthansa 


Para 

aua 

28 

Madrid 

Mr 

30 

Rangoon 

drttf 

29 

Fnrtfurt 

thund 

21 

Majorca 

Mr 

29 

era — i-i_- rs- 

rvoyiuavm 

rain 

11 

Ganna 

Mower 

21 

Malta 

Mr 

30 

Ho 

Mr 

28 

Gibraltar 

aun 

28 

Manchester 

shower 

17 

Rome 

Sun 

29 

Glasgow 

fair 

16 

Marfa 

ahower 

33 

S. Foco 

Mr 

22 

Hamburg 

rain 

16 

Metboune 

cloudy 

22 

Seoul 

Mr 

29 

■ ■— M— ■ ■ ■ 

nwmn 

Mr 

16 

Mexico Chy 

thund 

20 

Singapore 

a vrA 

31 

Hong Kong 

Mr 

32 

Mtad 

thund 

31 

Stockholm 

Mr 

ir 

Honouu 

fafr 

33 

Mian 

ihund 

27 

Strasbourg 

Mr 

20 

Istanbul 

Mr 

27 

Moraeel 

Mr 

17 

Sydney 

Mr 

IB 

Jakarta 

Mr 

an 

Moscow 

Mr 

17 

Tangier 

Mr 

2* 

Jeaey 

shower 

17 

Munich 

thuad 

22 

TetAetv 

sun 

32 

Karachi 

Mr 

32 

hfcilaull il 

shower 

22 

Tokyo 

shower 

32 

Kuwait 

sun 

45 

Naples 

sun 

30 

Toronto 

Mr - 

17 

L. Angelas 

- mr 

26 

Nassau 

thund 

31 

Vancouver 

cloudy 

20 

LosPsknas 

Mr 

26 

New York 

sun 

& 

Venice 

shower 

27 

Lima 

dowdy 

18 

race 

shower 

26 

Vienna 

Mr 

28 

Lisbon 

Mr 

24 

Nicosia 

sun 

35 

Warsaw 

Mr 

23 

London 

nan 

17 

Oslo 

Mr 

18 


ahowar 

27 

Lwuboug 

Mr 

IB 

Paste 

atwwT 

20 

WoEngion 

doudy 

11 

Lyori 

tv 

21 

Penh 

shower 

17 

Winnipeg 

aun 

18 

Madeira 

Mr 

2S 

Prague 

Mr 

26 

Zurich 

found 

18 


THE LEX COLUMN 

Daimler revs up 


Daimler-Benz bas huge potential. This 

is not because the Gorman behemoth 
has performed well in recent years but 
precisely because it has not ft has 
suffered from high engineering costs, 
over-staffing and a confusing mt* of 
businesses. This ragans there is mas- 
sive scope to turn its operations 
around. 

The good news from Daimler’s first- 
half figures is that the first fruits of 
restructuring are reaching the bottom 
line. There is more to come. It is not 
simply a matter of shedding jobs and 
shifting production to lower-cost loca- 
tions. Daimler also needs to focus on 
those businesses where it can achieve 
global scale. Mercedes already fits the 
MIL Most of its AEG division, with the 
exception of rail systems, probably 
never ran Dasa, the aerospace arm, is 
somewhere in between For it to be a 
successful global co m pet i tor, rational- 
isation of the European defence and 
aerospace industries is necessary. In a 
few years, Daimler could turn itself 
into a streamlined motor, aircraft and 
train manufactu rer - after which one 
could re-examine whether it makes 
sense for the three divisions to be 
yoked together. 

The big risk for investors is that 
management could become compla- 
cent With demand picking up. the 
company may think the pressure to 
perform is off Yesterday's comments 
by the outgoing chairman, Mr Edzard 
Reuter, that this year's profits would 
be “thoroughly satisfactory” could 
cause some concern. The net profit 
margins of 1 per emit forecast by ana- 
lysts are measly. Mr Jurgen 
Schrempp, the next chairman, should 
be aiming much higher. 

Broadgate 

The tussle over the future of Lon- 
don’s prestigious Broadgate develop- 
ment is starting to resemble an elabo- 
rate game of poker. In addition to 
Rosehaugh and Stanhope, joint own- 
ers of Broadgate Properties, at least 
three sets of anxious hankers ami an 
unknown number of potential buyers 
are involved. British La nd, the most 
aggressive of the bidders, has already 
strengthened its hand by buying a 29.9 
per emit stake in Stanhope itself Talk 
of Stanhope's debt changing hands in 
the secondary market raises the suspi- 
cion that it, or another bidder, is try- 
ing to apply additional pressure. 

Whatever the truth on that score, it 
is the attitude of lenders rather than 
shareholders that will determine the 
final outcome. With the proparty mar- 


FT-SE index: 3251.3 {+1.?) 


.Sjbtta *•*: 



5 jtt- 

i ' * ■■fflea-:,. .-/jjMtv. **' /. ' 

ket moving In their favour. Rose- 
ha ugh’s receivers and bankers have 
said that they are in no mood to sell 
their share of Broadgate for less than 
a full price. Since Stanhope is under 
pressure to restructure its £160m 
($248m) debt by the end of the year, 
though, the question is' whether' its 
syndicate Of 15 banks is prepared to 
take an equally optimistic view. 

The £1.5bn target valuation of 
Broadgate by Stanhope's surveyors 
must encourage them to do so. If the 
heady assumptions about rental 
g r owth prove to be correct it would 
make w*n«w for Stanhope to retain an 
equity interest In Broadgate rather 
than filing at the first opportunity. 
After the disappointments of recent 
years, though, the ba nkers m ust be 
inclined to treat such forecasts with 
suspicion. The bidders must decide 
whether to call thair bluff. 

UK construction 

Persimmon's comments an August 
house sales provided some cheer for 
its shares yesterday, but they still 
ended 20p below the rights Issue price 
in Mar ch, Since then hopes of a sus- 
tained recovery in the housing market 
have been dashed. The sharp rise in 
the. cost of fixed-rate mortgages and 
talk of the need for higher short-term 
rates stopped the improvement in Its 
tracks in June and July. Persimmon's 
report of a pick-up in August confirms 
comments from other housebuilders 
but even tiH»g» Imitative signs have 
not been mirrored in the overall hous- 
ing transaction figures. 

While housebuilders with the right 
products are having little trouble mak- 
ing sales the problem with the second- 


hand market is the dearth of decent 
supply. This in turn seems to be 
driven by the lack of house price infla- 
tion which has removed any sense of 
urgency from the market. The low 
level of house moves partly explains 
the depressed repair, maintenance and 
improvement activity which was high- 
lighted by the weak sales of bagged 
tyment reported by Rugby yesterday. 
But there appears to be more to it 
t h an that -Stagnant prices may have 
made householders question the value 
of adding that extension. 

Such penny-pinching has prolonged 
the price war among the do-it-yourself 
sheds which has brought continued 
deflation to consumer building prod- 
ucts. But with many of the sector’s 
raw materials prices cm the increase 
suppliers hke Spring Ram are haring 
to keep harking away at casts Inst to 
stand stnL Without an uptick in house 
prices the sector’s recovery could soon 
run out of steam. 

BT 

British Telecom's latest price cats 
show that the company has learnt a 
thing or two about marketing. Reduc- 
tions have been mandated by its regu- 
lator. But Oftel determines neither the 
precise timing of cuts nor which ser- 
vicas they should focus on. In the past, 
BT often announced a confusing jum- 
ble of price changes once a year. But 
the company has now woken up to the 
fact that the thwing and focus of price 
cuts can be used to throw the competi- 
tion off balance. 

Cutting kmg'distance charges by up 
to 25 per emit is sensible since that is 
a market where competition from its 
main rival. Mercury Communications, 
Is stiff. The timing looks designed to 
spoil the launch of Energis, which 
opened its long-distance service only 
this week. Further cuts can he expec- 
ted to focus an international calls, 
where Mercury is also strong. But BT 
wffl probably hold fire until it has a 
better idea of the competition it will 
face from a new breed of international 
operators and so knows how to cause 
the maximum damage. 

BT is also becoming smarter about 
presenting price cuts, ft now picks one 
service at a time and so can articulate 
a clear message. That is essential If It 
Is to persuade customers, who gener- 
ally tii ink that calls are more expen- 
sive than they actually are, to use 
their telephones more. None of this is 
rocket science/ But investors will 
pleased that FTs marketing depart- 
ment is no kmgef in the dark ages. 


THE ORIGINAL DALVEY 

BUSINESS CARD CASE 


INDIVIDUALITY AND FINK 
CRAFTSMANSHIP Amid the organisers, 
filofaxes and credit card holders of today, the 
Dalvey Business Card Case stands its owner 
apart. Elegantly slim, lightweight yet robust, 
it is a splendid decorative and practical 
personal accessory. 

INSPIRED BY VICTORIAN AND 
EDWARDIAN ORIGINALS, the design 
itself is entirely unique. It is made from high 
quality stainless steel superbly polished to 
give a magnificent finish which does not 
tarnish. It is decorated with a solid 
brass plate on which initials ran 
be engraved, or a company logo 
embossed. Precision engineered 
and hand finished, the smooth, 
slender Card Case is packed 
in a presentation box accom- 
panied by an illustrated 
booklet of period etiquette. 

COMPLETE PROTECTION 
of your cards is ensured. Each 
one will emerge in pristine 
condition, to represent you 
as it should. 

FINE VALUE AT £24.95 As a 
personal, corporate or business gift 
the Dalvey Business Card Case ts 
u n li k ely to be bettered. Engraving of up to 
3 initials £4. 50 and p&p £1.75 are extra. 

CORPORATE ENQUIRIES WELCOME 
Please phone or fax us for quotations for 
quantities and details of our full range of 
unique stainless steel gifts and accessories. ““ 

Grants of Dalvey, FREEPOST 1032, 

Alness, Row-shire IV17 OBR. 



ORDER FORM (Pleas* corite cl&xrly) mo 

Mr/ Mrs/ Miss 

Address 


TOTAL 


............................. Postcode.............................. 

Daytime phone number: 

Engraved Initials Required: ... 

Send to: Grants of Dalvey, FREEPOST 1032, 
Alness, Ross-shire IV17 OBR. 

CTel: 0349 8841 11 Fax: 0349 884100) 

(24 hours) 

Please allow up to 28 days for delivery. 


Please send me: 

Card Cases at £24.95 each 

Engraving at £4.50 each 
“* P&P at £1.75 each 

Cheque/PO enclosed for TOTAL £ 

OR order by credit card by post/phone/fax: 

Access Visa Am ex ..... 

Expiry date: 

Number: . 

Name on Card: - 

Signature: 

• Company No. 99662 




, ,h drUS* 


t:'“ r. 


JJI* 


*!**» 


A** 1 * 


-a ■ * 


I* 




5-*® " 


tjt 


-*j C- 


... js-;- 


MSetohw mi!* »•; * » * 

t •• • • > 

a|ha terced to ciaav 

-xE - ■ 

- ' 

TV. 

; 

IhfoWderi show pr-jtwu** 

sr.s i , - . 




‘•-It 

S* 

> 

% 




•4 ’ 


3 

3 






17 



tSVV-’V 


FINANCIAL TIMES 

COMPANIES & MARKETS 

Thursday September 1 1994 


©THE FINANCIAL TIMES LIMITED 1994 



IN BRIEF 


Swedish drugs 
groups surge 


Astra, the Swedish pharmaceuticals group, 
yesterday announced a 23 per cent jump in first-half 
profits to SKr4J0bn (|581m). with strong sales 
growth more than compensating for a sharp drop in 
financial income. 


Pharmacia, the newly-privatised Swedish drugs 
group, yesterday reported a better-than-expected 
profit of SKr2.68bn ($343m) for the first six mmitha 
as sales reached SKrl 3.71m. Page is 


Bristol A West breaks new ground 

Bristol & West Building Society, the OK’s 10th larg- 
est, is set to launch a commercial mortgage securi- 
tisation, the first by a UK society. Page 18 


TVS rise stuns market 

Television Broadcasts (TVB), the Hong Kong televi- 
sion company, stunned the stock market with a 70 
per cent increase in first- half net to 

HK$278m (US$36m). Page 18 

ITT plans formal bid for-Ciga 

ITT, the US conglomerate, plans to launch a formal 
bid for 35.25 per cent of Ciga, the Italian, hotels 
group, at a price of about Ll.100 a share. If success- 
ful, the bid will double the US company's stake in 
CSga to just over 70 per cent Page 29 

Tumrotmd at TUT 

A tumround at Ansett Airlines and reduced losses 
at GD Express Worldwide business, helped TNT, 
the Australian transportation and par-fragg delivery 
group, to an equity-accounted profit after tax and 
abnormal items of A£105.1m (USS78m). Page 20 

Charges drag ABBA Holdings into loss 

Abnormal charges at mim 1 Holdings, the Queens- 
land-based metals and mining group, p ulled it mto 
a AJ195-lm (US$l45m) loss after tax in the year to 
end-June. Page 20 

Pulp and paper upturn continues 

Clear evidence of a strong upturn in the pulp and 
paper cycle emerged yesterday when two of Swe- 
den's leading forestry groups, SCA and MoDo. 
reported a sharp increase in first-half profits. 

Page 18 

Banco Santander sells Banesto «*aite 

Banco Santander has sold 1.47 per cent of Banesto, 
the troubled bank it took over earlier this year, to 
la Caixa, the Barcelona-based savings bank. The 
deal could foreshadow wider agreements between 
the two leading domestic finanriat institutions. 

Page 19 

Spring Ram forced to close Artisan 

Spring Ram, the UK kitchen, bathrooms and furni- 
ture group, is to close its loss-making Artisan Hie 
factory in BradfortLPage 23 

UK housebuilders show promfsa 

Share prices of housebuilders rose sharply yester- 
day after companies reported that new house sales 
had recovered last month. Page 22 

Ryan loans deepen to £7.3501 

Ryan Group, one of the companies expected to bid 
for British Goal assets later this month, incurred 
pre-tax losses of £7.35m ($!L3m) in the year. 

Page 23 


Companies In this Issue 


AGf 

19 

Astra 

18 

BBL 

18 

Banco Santander 

19 

Baring Emerging 

23 

Beckenham 

23 

Bols Wessanen 

19 

Brinson Partners 

17.18 

Calm Energy 

23 

Castle Energy 

17 


19 

Ctga 

19 

Courts Consulting 

22 

Daimler-Benz 

17 

Oonsitck Himter 

23 

Farmfl (Electronics 

23 

Fletcher ChaBenge 

20 

GPA 

22 

Geest 

23 

Greycoat 

23 

Guinness 

22 

1AF 

23 

rrr 

19 

iscor 

20 

Japan Tobacco 

17 

Johnson Fry Utils 

23 

Johnson Press 

23 

KOhrta & Nagel 

18 

La Caixa 

19 


Lonrho 

18 

MM Holdings 

20 

Matafigesetechaft 

17 

MoDo 

18 

Newrrarit (Louis) 

22 

Pacific Horizon 

' 23 

Partco 

22 

Persimmon 

22 

Pharmacia 

18 

Prolific 

23 

Provident Financial 

23,22 

Psion 

23 

Ropner 

23 

Rothmans Industries 

23 

Rugby 

22 

Ryan 

23 

SBC 

17 

SCA 

18 

SPT Telecom 

18 

Seagram 

19 

Serco 

23 

Spring Ram 

23 

Stadstiypolek 

18 

TNT 

20 

Television Br’caste 

20 

Tete 

18 

Texas Instruments 

1 

Tottenham Hotspur 

22 

VNU 

19 

Vision Express 

23 


Market Statistics 


fAnoual reports sendee 26-27 

BencnoHfc Govt bonds 21 

Bond Mums and options 21 

Bond pdcoG and yWds 21 

Commodates prices 24 

Dividends announced. Ik 22 

BdS currency BBSS 32 

EbrabowJ oriens 21 

Rxed WtsnsA indices 21 

FT -A World Me es Back Fa* 
FT GoM Mms into Backfep 
FMSMA infl bond arc 21 

FT-SE Actuates mutes 25 


Foreign exchange 32 

GBs press . 21 

Ufle aptly options Back Pago 
London share service 26-27 
London trad) options Back Pag* 
Managed tends sendee 28-32 

Money martens 

New kill bond issues 
Recent issues, ux 
Short-term W rates 
US interest raw 
World Stock Martoas 


Chief price changes yesterday 


nuNKruffrpM) 


Otaris ttnftf 

355 


Hew 

3J3 

*■ 

Mamsmm 

X332 

+ 

PMs 



Mtana 

677.5 

“ 

Poke 

975 

“ 

Kaunaf 

S37 

" 

MMYORKP) 


Mm* 



CnttUww 

17 

* 

NuAmlJWtt 

7V. 

* 

r*R* 



dan nans 

4Stt 


Heron neb 

41 * 

- 

Ira (rS8nntJ 

78'-* 

- 

MfSntai UnfiMri 

54 l . 

" 


» 

12 

as 

10 

a 

(US 


?u 

1*4 

IK 

l»» 

44 

a 


Nr* Vmk prton* M 1230- 


LOKDOM (Pane*) 


BmaB Dm 
BwftSra p 
DllUUiU 
Hog's 

DmuaMuDBr 

w 


UMftXJ 

Uajroi Pmw 

Palm 


Asm 

MUMS 


210 * 
216 * 
43 + 

159 * 

260 + 
* 


Im a MsebBtr 35' 


142*1 

48 

ac 

205 

ISOS 


1? 

11 

3 

6 

10 

s 

1? 

6W 

5 

13 

10 

II 

•SI 


pares (mi 


Rw 

Boaordn 

3179 

+ 

134 

bn R5C8 

£92 


22 

RaM 

1326 

+ 

S_8 

Gtf Ufajotto 

2400 

+ 

120 

UaW 

1ZU 

+ 

U 

Rousd-uctt 

657 

* 

14 

TOKYO pr«*4 

GaunHSekfeJ 

1270 

♦ 

100 

K ritaUnT 

830 

+ 

34 

irttNItepn 

472 

+ 

47 

OhmnCriP 

OBI 

+ 

32 

no* 
cswn warn 

86S 

- 

35 

loan cw 

382 

“ 

12 


StGurievA 

1058 

+ 

50 

Saco 

2S7 


14 

TontriBm Bar 

144 

♦ 

19 

Wfctm [tort 

234 

+ 

17 

**«> 

Arpl Op 

295 

- 

11 Mi 

Cart* Prop 

258 

- 

10 

OnttV&fto 

229 

- 

10 

QxXM Conjua 

87 

- 

22 

MW 

70 

- 

S 

Bamo? Bww 

105 

- 

11 

Mb-fiteco 

188 

- 

10 


Metallgesellschaft escapes from Castle 


By Christopher Parkas in Frankfurt 

A gaping hole In Metallgesellschaft’s 
finances was plugged yesterday after the 
struggling German metals and engineer- 
ing group negotiated its way out of a 
series of crippling contracts with a US 
oil refiner. The costly relationship, 
which recently forced Metallgesellschaft 
to sell prime assets to generate DMUm 
($800m) to cover expected losses on the 
contracts. Is to end on January 31. 

The deal could mark the group's most 
significant step towards financial health 
since its creditor banks provided a 
DM3.4hn rescue package to save it from 


collapse last January. Under a complex 
two-stage agreement, MG Corp. the 
group’s US subsidiary will effectively 
Cancel all existing Hnirs - as share- 
holder, customer and financier - with 
Castle Energy. 

The extraordinary, still-unexplained, 
customer relationship was developed by 
now-departed US executives. It obliged 
MG Corp to buy all Castle’s refinery 
output until the year 2000 at prices 
above market levels. 

Mr Kqjo Neuktrchen, group nhairtfiaw, 
recently described Castle, in which MG 
Carp had a 40 per cent stake, as a mon- 
ey-making machine. MG Corp was a 


money-destroying machine, he said. 
Group officials were unable last Tri gh*. to 
specify the cost of the arrangements, 
which include Metallgesellschaft’s 
assuming S375m of Castle's third-party 
debt and cancelling Castle's obligations 
to MG Corp. “It is expensive, hut the 
alternative [to honour the oil contracts] 
would have been much, mn^ dearer,” a 
spokesman said. "We are all very 
relieved,'’ he added. 

It also emerged yesterday that Metall- 
gesellschaft is preparing to place its 47 
per cent stake in the Kolbenschmidt 
automotive components group if talks 
with potential industrial buyers fail 


again Flans were being drawn up as an 
“option” to raise about DM25Qm. bank- 
ing sources said. 

Industry officials suggested the prepa- 
rations were intended to “put a squib" 
under Dana Corp of the US and Britain's 

T&N, the two leading contenders for the 
stake. A placing would almost certainly 
result in the holding’s being taken into 
“safe German hands”. The leaked news 
that the shares could be placed might 
have been intended as a warning to 
Dana and T&N that they could miss an 
important opportunity in the German 
market if they tried to drive too hard a 
bargain, the officials suggested. 


Metallgesellschaft confirmed negotia- 
tions bad resumed with Dana, which 
unexpectedly pulled out of a purchase 
agreement signed in March after report- 
edly deciding the price was too high and 
that it wanted to exclude Kolbensch- 
midt’s aluminium foundry from the deal 
'Hie last disposal via a share placing, 
of the group's Buderus heating equip- 
ment subsidiary, stirred considerable 
criticism from foreign institutions when 
it emerged that control had effectively 
passed into the hands of the Bilfmger 
and Berger construction group with the 
help of Dresdner Bank, one of Metall- 
gesellschait’s main creditors. 


■ Tumround to operating profit of DM926m ■ ‘Inexplicably weak’ dollar hurting exports and aircraft sales 


Mercedes drives first-half 
recovery at Daimler-Benz 


By Kevin Done, Motor industry 
Correspondent, in London 

Daimler-Benz, the German 
automotive and aerospace group, 
achieved a DM&3hn (82Jhn) turn- 
round in its operating perfor- 
mance tn the first half of the year 
with an operating profit of 
DM928m compared with an oper- 
ating loss of DM2.4bn in the same 
period a year ago. 

Mr Edzard Reuter, rhalrmati af 
the management board, said the 
group would achieve “a thor- 
oughly satisfactory operating 
profit” for the full year, and fore- 
cast that “almost aU” operations 
would return to profit by 1995. 

Around DM650m of the 
improvement arises from the «ate 
of a majority stake in Mercedes- 
Benz Leasing to German banks. 

Daimler-Benz net profits under 
US accounting standards totalled 
DM368m in the first half com- 


pared with a net loss of DM949m 
a year ago, while gaming s per 
share an the same basis recov- 
ered to DM7.82 from a loss of 
DM20.37 per share. Under Ger- 
man accounting rules, net profits 
nearly trebled to DM462m from 
DMl68m on group turnover 
which rose by 13.4 per cent to 
DM4&96bn from DM43. ISbn. 

Mr Reuter said the group was 
concerned by “the inexplicably 
weak rate” of the US dollar 
against other leading trading cur- 
rencies, and in particular against 
the D-Mark, which was hurting 
both car exports to the US and 
sates of commercial aircraft. 

The tumround follows a 
restructuring programme begun 
in the second half of 1992 which 
includes the cutting of 78,000 jobs 
by the end of 1995. 

The first-half recovery was 
helped by severe measures to cut 
costs, boost productivity and 


rationalise operations, but it also 
was supported by an improve- 
ment in the fortunes of the Mer- 
cedes-Benz executive and luxury 
car operations due chiefly to the 
successful launch of the new 
C-Class executive car range. 

Car production jumped 448 per 
cent to 302,076, while car sales 
volumes rose 408 per cent to 
296,770 and turnover rose 228 per 
cent to D M2L2hn. 

Mr Reuter forecast that the vol- 
ume of car ssdes in the foil year 
would rise by about 15 per cent 
to 585.000. The car operations 
were currently working “to the 

limit of our tecTminal capacity” 
in most areas, he said. The 
group’s E-Class luxury car would 
be replaced in mid-1995. 

New car projects currently 
under development were expec- 
ted to increase Mercedes-Benz car 
production to about lm units a 
year by the end erf the decade. 


Monopoly’s privatisation price see m s steep as core 
growth is being extinguished, writes Gordon Cramb 



Angus MM* 

Edzard Renter, chairman, predicted ‘a thoroughly satisfactory operating profit* for the foil year 

These include two umall cars as vehicle to be built in the US. declined by 5.6 per cent to 

well as a multi-purpose vehicle to The turn o ver of Deutsche Aero- DM7.2bn and for the full year 

be built in Spain and a space, which is cutting 10,000 was expected to be unchanged, 

four-wheel drive sports/utility jobs and closing 6 plants. Lex, Page 16 


SBC buys 


US invest 


ii 


ent firm 


T he Japanese finance minis- 
try yesterday put a market 
value of Y2js76bn ($28.7bn) 
on the country's monopoly ciga- 
rette manufacturer, setting the 
privatisation price for Japan 
Tobacco at what many found a 
gasp- inducing Y1.438m ($14,380) 
per share. 

While maximising revenues for 
the government at a ti™* when 
its tax receipts are down, the pri- 
cing drew concerns from analysts 
that the Tokyo Stock Exchange 
might be in for another bumpy 
autumn journey. 

fawal trading last October in 
JR East, the previous big state 
sell-off, all but derailed the 
exchange’s systems as the price 
ran up furiously. Liquidity 
drained from the mar ket, and 
stock in the regional train opera- 
tor eventually fall back to join 
other issues in a hibernation 
which they have yet to shake off. 

Japan Tobacco shares, which 
go on sate from tomorrow, start 
trading on October 27. Like JR 
East the company has strong 
cash flow and a healthy land 
portfolio. It is also virtually debt- 
free. But tike tobacco groups else- 
where, it has no prospect of 
growth in its main business. Its 
diversification attempts are not 
expected to contribute signifi- 
cantly to earnings for as much as 
a decade. 

JTs asset base prompted bids 
of up to Y2.Llm a share in a 
pre-offer auction among institu- 
tions. Although the lowest 
accepted bid in the auction of 
230.000 shares, or 115 per cent erf 
equity, was more than YL36m. 
some securities houses said 
shares were worth only Y50Q.000 
if measured against western 
industry leaders such as Philip 
Morris of the US, maker of 
Marlboro. 

After the public tranche, the 
government will retain two- 
thirds control of JT, and has left 
intact its status as the only 
licensed producer of cigarettes in 
Japan. The market has, however, 
been open to imports since I Ktf, 
and these have grown steadily to 
account for 17.9 per cent of aU 
cigarettes sold in Japan last year. 

JT acknowledges that the rise 
in foreign penetration will con- 
tinue. The company’s main 
advantage is its distribution sys- 
tem. which extends to pavement 
vending machines unde 1 its con- 
trol The main foreign brand 
found there is Marlboro, which 
JT under licence. 

The group has struck a sfiniiar 
deal with France's Seita state 
monopoly to produce Gttanes 
and international fink* 
are seen as a way forward. JT 
licenses its own best-selling Mild 
Seven brand fin- manufacture to 
Malaysia, and to 1992 bought 
M anch e ster Tobacco in the UK to 
supply Europe and parts of Asia. 
In May JT said It was quintupl- 
ing capacity in Manchester to 
IQbu cigarettes a year, a figure 
that pales compared with the 


Japan Tobacco at 
$14,380 a share 
leaves ’em gasping 


Japan Tobacco net income set alight . 



272J9bn JT cigarettes winch the 
Japanese tit up last year. 

Japan is among the few devel- 
oped countries where most men 
still smoke - 595 per cent - but 
the proportion Is slowly falling, 
while the 13^ per cent of women 
who are smokers has barely 
changed in a decade. JT admits: 
“We will see a decline to the 
number of young people who are 
the primary consumers, so the 
tobacco industry will be faced 
with difficulties.” 

Japan, where foreign consumer 
products have usually sold on a 
premium image, has not yet 
encountered the wave of super- 
market brands which have 
brought price competition to 
some western cigarette markets. 
In the current climate of auster- 
ity JT recognises this as a threat 
and at least one US maker has 
begun selling a discounted line to 
Japan. 

To shape up for the private sec- 
tor, JTs workforce has been cut 
by nearly a quarter to 23,700 and 
the number of domestic plants 
reduced by a rimnar mar gin to 
26. It has sought other busi- 
nesses, most notably pharmaceu- 
ticals where it now produces 40 
over-the-counter drugs and an 
agent used to chemotherapy, its 
first prescription treatment 
developed to-house. But it is 
likely to be 10 years before the 
sector generates an income 
stream, and outlays are stffi high. 


The company spent Y40bn on a 
research centre for the division 
and says that such spending, 
along with increased promotional 
for its tobacco business, account 
for a steady increase in market- 
ing and administrative expenses 
- these outlays rose 44 per cent 
over the past five years while 
pre-tax pro fi t s were up a little 
more than a third. 

JT is forecasting a 4^ per cent 
dip to profits before tax to 
Y109bn in its current year to 
March, on a 2.6 per cent decline 
to sales to Y2,71Ibn. Net earnings 
are, however, projected to emerge 
higher at Y36JXX) a share against 
Y33J246. from which a dividend of 
at least Y5.000 will be paid. Net 
assets per share in March were 
put at Y564B47. 

Most foreign funds which track 
Japanese stock market indices 
will shell out for some Mild 
Seven. But Mr Keith Donaldson, 
investment strategist at Salomon 
Brothers in Tokyo, says: 1 don’t 
think Td recommend it at this 
price." 

Individual Japanese investors 
may decode differently. But to a 
country where derisions are com- 
monly made in smoke-filled 
rooms, there was one possible 
portent yesterday. As Mr Masa- 
yoshi Takemura, finance minis- 
ter. chaired the meeting of doz- 
ens of officials and advisers 
which set the JT price, the air 
was curiously dear. 


By Ian Rodger In Zurich 

Swiss Rank Corporation, Switz- 
erland's third largest bank, is to 
acquire Brinson Partners, a lead- 
ing US investment management 
firm, as part of its strategy for 
building up a global institutional 
asset management business. 

SBC said to Zurich yesterday it 
would charge $750m against its 
capital reserves for the purchase, 
although the final price would 
depend on Brinson’s perfor- 
mance over at least seven years. 
It had pre-tax profits of $35m 
last year. 

Brinson, with assets under 
management of $36hn and a staff 
of 233, is the second big US 
acquisition made by SBC to the 


past two years. In 1992, it 
bought the business of the 
O’Conner Partnerships, also 
based in Chicago, specialising in 
the use of derivatives in invest- 
ment risk management 

SBC plans to integrate its own 
Institutional asset management 
business with Brinson’s in a new 
division under the direction of 
Mr Gary Brinson, the US firm’s 
president Together, they would 
manage some $65bn. 

Brinson, formerly First Chi- 
cago Investment Advisors, pio- 
neered active management of 
global portfolios for US clients in 
tiie early 1980s. 

As part of the acquisition, SBC 
will take over Brinson’s 1991 
joint venture with Yasuda Fire & 


Marine Insurance of Japan. 

Mr Georges Blum, SBC*s chief 
executive, said Brinson would 
“reinforce the share of stable 
and sustainable income streams” 
of the bank, a remark that 
appeared aimed partly at 
responding to recent criticism of 
Its earnings volatility. 

In tiie first half of 1994, SBCs 
profits before taxes and provi- 
sions fell 45 per cent to SFriJZbn 
(*900m). mainly because of a 63 
per cent slide in trading income. 

Mr Blum- yesterday revealed a 
breakdown of operating income 
for the first time. The Swiss 
domestic division made 
SFr2.36bn, 70 per cent of the 
total, while international and 
finance contributed SFr899m. 


Why pay your 
stockbroker for advice 
you don't need ? 




y® M.v 'w.,, -'...-4 

£5,000 I 

£100 

£50 

50% | 


£149 

£65 

56% 


2212 

£70 

67% 


£293 

£85 

71% | 


n 


Fidelity’s Stockbroking Service offers 
the independent investor everything a 
traditional stockbroker provides - except 
the advice - at substantial saving. Just 
compare commission levels above. 

And Fidelity's trading expertise in 
handling large orders means that we are 
often able to negotiate better prices for 
our customers than those publicly quoted 
ou the London Stock Exchange. 

Consider the benefits: 

✓Up to 71% savings on 
commission 

✓Free real time trading 
information 

✓Weekend order taking 

✓ 0800 Callfree trading number 
What's more, you have the reassurance 
of the Fidelity name — one of foe leading 


and most respected stockbroking and 
fond management groups in foe world. 

To start saving now, why not call or write 
for an application. 


Oailree 0800 222190 
9am - 6pm (Mon-In) 
I0am - fpm (Silt-Sun) 
Fax 0737 830300 anytime 


FRffiPOST iff 4392 , WWORTH, Storey KROfiBR 

Please sod me a brochure md appficakm for Ffde&ys 
Stuckbrofaisg Serricc rad Sodibroking^LOS 


Address. 


Poscnde 


*BotdoBsj3»W7 IWM^ss^ofM^yuiiniMtawcflOliadns I 
Lkritd, matter cf IteLooioa Stock Etrinigr jndUcSL L 



020 


Brokerage 

We cut commission -not service. 






18 


FINANCIAL TIMES THURSDAY SEPTEMBER 1 1994 


INTERNATIONAL COMPANIES AND FINANCE 


Strong sales lift Astra in first half 


By Christopher Brown-Humes 
hi Stockholm 

Astra, the Swedish pharma- 
ceuticals group, yesterday 
announced a 23 per cent jump 
in first-half profits to 
SEi4.50bn ($58im), with strong 
sales growth more than com- 
pensating for a sharp drop in 

flnanriai rnryimp 

The group said sales and 
earnings would continue to 
rise In the second half, 
although it warned that 
growth would be slower than 
last year because of a less 
favourable currency Influence. 

Underlying sales were 23 per 


cent higher at SKrl3.3bn, 
enabling the group to take fur- 
ther market share in its most 
important markets. 

Star performer was the anti- 
ulcer drug, Losec, which lifted 
sales by 41 per cent, compared 
with market growth of around 
10 per cent. Overall, Losec 
sales reached SKr8.l4bn, up 47 
per cent. 

Losec, the main challenger 
to Glaxo 'a Zantac, haw around 
35 per cent of the European 
market and Is the top-selling 
drug in both France and. Ger- 
many. Astra says it has prelim- 
inary indications that Losec 
may even have overtaken Zan- 


tac in the UK market The drug 
has a US market share of 
around 17 per cent 

Bulmicort, the anti-asthma 
agent increased sales by 29 per 

cent to SErl.77bn, helped by 

the launch of the group’s Pul- 
mi cort Turbuhaler in Germany 
fhfa year. 

Group operating earnings 
grew 37 per cent to SKr442bn 
but the full impact was not fait 
at the bottom line because of a 
sharp drop in financial income 
to SKr85m from SKr392m. 

The group said it suSered up 
to SKrl50m in unrealised 
losses on its bond portfolio 
while capital expenditure rose 


sharply to SKx3.3bn from 
SKrL2bn. Among other invest- 
ments, the group strengthened 
Its position in Japan by lifting 
its stake in a joint venture 

with Fujisawa to 90 per cent. 

Sales in Germany, the 
group’s main market, climbed 
27 per cent in local currencies, 
against estimated market 
growth of 5 per cent The com- 
pany said Losers German 
sales had not been affected by 
a domestic scare surrounding 
an injectable form of the drug. 

Analysts expect full-year 
profits of between SKrS^hn 
and SKrlObn, compared with 
SKr7.8bn last year. 


Swedish 
mortgage group 
to de-mutualise 

By Hugh Camegy 
In Stockholm 

Stadshypotek, Sweden’s largest 
mortgage credit institute, yes- 
terday launched a SKrSbn 
share issue to convert it from a 
cooperative organisation into 
a profit-orientated listed com- 
pany. 

The offer, one of the biggest 
de-mutualisation projects car- 
ried out in Sweden, is being 
made to 760,000 Stadshypotek 
borrowers who will be allowed 
to waive subscription rights in 
favour of domestic and interna- 
tional institutions. 

Borrowers will be eligible, 
according to the size of their 
mortgages, to subscribe for 
shares at a price of SKrSO per 
share. They will also receive 
one matching share free for 
every share they buy from 
Stadshypotekskassan (the 
Urban Mortgage Bank), the 
trustee fund which currently 
owns 100 per cent of Stadshy- 
potek. 

The shares are expected to 
have a pro forma net asset 
value of about SKrl25. 

Stadshypotek can also issue 
a further 4.5m shares at mar- 
ket prices to Swedish and for- 
eign institutions if the initial 
offer is a success. 

The subscription period for 
the initial offer starts on Sep- 
tember 28. 

If fully taken up, the offer to 
borrowers will leave UMB with 
a 36-2 stake in Stadshypotek. 
Under current legislation, 
UMB's holding is due to 
be wound up by the year 
2002 . 


Cost-cutting helps Pharmacia to 
half-time profits of SKr2.66bn 


By Christopher Brown-Humes 

Pharmacia, the newly- 
privatised Swedish drugs 
group, yesterday reported a 
better-tha n -expected profit of 
SKriL66bn (3343m) for the first 
six months as sales reached 
SKri3.7bn. 

The group said it was diffi- 
cult to compare its figures with 
the same 1933 period because 
of the acquisition of the Italian 
pharmaceutic als group Farmi- 
feilia Carlo Erba (FICE) in May 
1993. 

If FICE is included on a pro- 
forma basis from January 1 
1993, underlying sales were 4 
per cent higher than a year ago 


and underlying operating prof- 
its were 25 per cent higher at 
SKr2.76bn. The group said the 
mam reason for the Improve- 
ment was cost-cutting. 

The company said its operat- 
ing margin for the 12 months 
to June 30 was 16^ per emit, 
compared with 14.7 per cent for 
the whole of last year. It is 
looking for sayings of SKrL2bn 
by 1996 to achieve an operating 
margin of 20 per cent 

Sales of the group’s two 
main drugs, Genotropin 
(growth hormones) and Healon 
(cataract surgery) both fell 
slightly. It blamed restrictions 
on healthcare spending in 
Spain and Austr alia for the 1 


per cent decline in Genotropin 
sales to SKrLSbn. Healon sales 
were also 1 per cent lower at 
SKr797m due to fewer surgical 
operations In the US. 

Although sales in the Swed- 
ish market fall 7 per cent to 
SKr967m, sales in Japan, the 
group’s most Important mar- 
ket, rose 15 per cent to 
SKr2J2btL 

The Swedish government 
sold most of its shares in Phar- 
macia in June but has retained 
a minority 12 par cent stake to 
provide the group with owner 
ship stability ahead of Volvo’s 
planned divestment of its 28 
per cent stake in the company 
in 1996. 


Czech telecom monopoly 
advances to Kcs3.49bn 


By Vincent Boland 
in Prague 

SPT Telecom, the Czech state 
telephone monopoly being 
restructured and privatised, 
yesterday reported pre-tax 
profits of Kcs3.49bn ($124£m) 
for the six months to June on 
revenues of KcslO.Qlbn. 

Interim figures for 1993 were 
not made available, but SPT 
Telecom made full-year pre-tax 
profits of KcsGbn on revenues 
of Kcsl8.3bn last year. The 
company expects full year pre- 
tax profits for 1994 of KcS7.4bn. 

SPT Telecom is seeking a 
single strategic partner to buy 
27 per cent of the company by 
March l next year to help mod- 


ernise its outdated network. 
Several international telecoms 
groups are believed to be inter- 
ested, with most speculation 
centred on France Telecom and 
AT&T oT the US. 

Only one in five Czechs has a 
telephone, and SPT Telecom 
has a backlog of more than 
500,000 applications for new 
telephones. 

The company's future invest- 
ment programme calls for 
spending up to Kcsl80bn. on 
updating equipment ami speed- 
ing up installations. 

Under the government’s tele- 
communications policy, SPT 
Telecom is to retain a monop- 
oly of Czech telephone services 
until the end of the decade. 


Rowland faces 
directors’ vote 

By Robert Peston and 
Roland Rudd in London 

Lonrho directors will today 
vote on whether to strip Mr 
Tiny Rowland of his executive 
powers, in a move which may 
end his 33-year reign over the 
international trading group. 

Though the formal agenda of 
today's board meeting does not 
contain a motion to depose Mm 
as joint chief executive, the 
directors are expected to raise 
the question of whether he 
should continue in the post as 
part of "any other business’'. 

The move follows disclosures 
that Mr Rowland cost file com- 
pany more than £5£m (38.4m) 
a year in salary and other 
charges. 




mstmffi 




Highlights July '94 

Langgeng Makmur Plastic Industiy Ltd. 
reports good results 


Jn the first seven months of 1994 Langgeng reported good resuits. 
Compared with full year 1993's result, total revenues were 47.8% 
higher at Rp 33.1 billion and net profit stood at Rp 6.1 billion, 41 .9% 
higher than FY1993. 


Key Figures 


(in Rp billion) 

July *94 
(7 months) 

FY1993 
(12 months) 

% 

higher 

Total Revenues 

33.1 

22.4 

47.8 

Operating Profit 

7.2 

5.5 

30^ 

Net Profit 

6.1 

4.3 

41.9 

Total Equity 

47.2 

41.1 

14.8 

Total Assets ( 

60.2 

572 . 

5.2 

EPS{Rp) * 

229.3 

161.7 

41.8 

Current Ratio(%) 

231.0 

212.0 

9.0 

Net Gearing (%) 

7.9 

6.6 

19.7 


*) Bases on weighted average ft of shares 

Key Points 

• Indonesia's leading consumer products manufacturer 

• Targeted at iow-middie income consumer market 

• Strong cash flow and extremely low gearing 

• Expansion will boost earnings substantially in the next two years 

With almosttwo decades of experience, the company is well positioned to retain 
its leadership in the plastic houseware market which it serves. 


PT Langgeng Makmur Plastic Industry Ltd. 
Surabaya, Indonesia 
(62) 031*839 550 


26 August 1994 






BBL posts 
26% rise to 
BFr3.85bn 
at midway 

By David Gardner In Brussels 

Basque Bruxelles Lambert 
(BBL), one of the big three Bel- 
gian banks, yesterday an- 
nounced a 26 per cent rise in 
consolidated net profits fin- the 
first half-year, of BFzB^Sbn 
(3118m) against BFrtUKflbn In 
the first half of im 

An m i m irfin the result, Mr 
Daniel Cardon de Lichtbner, 
chief executive, said that 
BBL’s “battle is won,” after 
the black year of 1992. 

BBL cut its dividend in 1992 
after having to make heavy 
provisions for bad loans, and a 
bid to link up with IntematJo-' 
nale Nederlanden Groep, the 
Dutch financial services 
group, collapsed. 

Since then, there has been a 
dean-out of the foreign net- 
work's loan portfolio, where 
most of the bad debts were 
lodged, and a much more rig- 
orous assessment of credit 
risk, especially in lending to 
the private sector. 

BBL earned a BFr392m 
profit from its European sub- 
sidiaries In the first half, 
against losses for the whole of 
last year of BFr943m. Private 
sector loans, meanwhile, ruse 
only 3 per cent in the first six 
months of 1994, compared 
with a 12 per cent increase in 
lending to the public sector. 

Provisions for loans and 
investments fen 28 per cent to 
BFr4.471m, against BFHL21bu 
in the first half of last year. 

Mr Cardon expected similar 
earnings in the second half, 
and total provisions for the 
year of the order of BFr5bn, 
half 1992 levels. 


Kahne & Nagel 
ahead 11.7% 

KtUme & Nagel, the freight 
forwarding group which 
floated shares on the Swiss 
and German markets in May, 
has reported a first half net 
income of SFr24.9m (318.8m), 
up 11.7 per cent on sales of 
SFi£J2bn, ahead 14.4 per cent, 
writes Ian Rodger. 

The group said it was con- 
fident that it would at least 
reach its full-year net profit 
target of SFrSOm for 1994- 


Swedish forestry groups 
reflect upturn in sector 


By Christopher Brown-Humas 

dear evidence of a strong 
upturn in the pulp and paper 
qyde emerged yesterday when 
two of Sweden’s leading for- 
estry groups, SCA and MoDo, 
repotted a sharp increase in 
first half profits. 

SCA said profits after finan- 
cial items had risen to 
SKr818m (3105.7m) from 
SKrS5Gm, excluding one-off 
items. 

MoDo returned to the 
hinnit, swinging to a SKi471m 
profit after financial Items 
from SKrXLSm loss a year ago. 

Both companies said they 
were feeling the effects of 
increased volumes and 
lower financial costs. MoDo 
also highlighted a sharp 
upturn in prices for pulp, fine 
paper and sawn goods as the 


basis for its tumround. 

SCA upgraded its foil-year 
forecast, saying it now expec- 
ted profits of between SKrL9bn 
toSKr£3taL 

Underlying group sales were 
3 per «mt higher at SKrl5.6bn, 
mainly because of highar vol- 
umes. Operating profits 
increased to SErl29bn from 
SKrLOGhn, although the latest 
figure included SKr2l6m in 
one-off gains.' Net financial 
costs ftfluk to $Kr360m from 
SKrSOTm. 

The group's MOnlycke 
hygiene division, which did 
much to sustain SCA during 
the downturn in the pulp and 
paper cycle, saw profits sink to 
SKr43lm from SKr580m due to 
Intensive competition in the 
nappies market 

MoDo saw' sales climb 12 per 
cent to SKriMtm, mainly due 


to higher volumes and prices 
for pulp and fine paper. 

The operating result dhnbed 
sharply to SKr909m from 
SKr277m. The latest figure 
induded a SKrl4Qm payment 
received as compensation for 
start-up problems at the 
group’s Alizay plant In France. 

All the group's units 
reported higher operating prof- 
its as the group benefited from 
Improved capacity utilisation 
and better markets. 

MoDo Paper, the fine paper 
division, swung to SKrl27m 
profit from a SKr202m loss 
while Iggesund Paperboard 
saw profits rise to SKr332m 
from SKrl56nL Group financial 
costs fell to SKr438m from 
SKr596m. 

The company says full-year 
profits will comfortably exceed 
SKrlbn. 


Financial items boost Skanska 


By Chris toph er Brown-Humea 

Skanska, the Swedish con- 
struction and p roperly group, 
yesterday reported a 30 per 
cent rise in first-half pre- 
tax profits to SKrl.52bn 
(3396m). 

The rise came in spite c£ a 
weaker Swedish construction 
market and was achieved due 
to lower net interest costs, 
reduced exchange losses on 
loans and increased income 
from dividends. 

Operating profit before finan- 
cial items was SKrL32bn, after 
frinhirirng a SKx234m gain on 
the sale of Investment and 
development properties. The 
figure was 7 per cent lower 
than a year ago when operat- 


ing profits of SKrl.43bn. 
included a SKrSTm gal" from. 
p ro perty sales. 

The group has already 
exceeded the SKTU2bn profit 
it reported for the whole of 
1993. Its second-half figures 
will include SKr880m in reve- 
nues following the winding-up 
of Protorp, the investment 
company. 

Revenues climbed to 
SKrl42bn from SKrl4bn. How- 
ever, the group relied on a 
strong expansion of its interna- 
tional construction business, 
where revenues climbed to 
SKr3.9bn from SKr2.4bn, to 
offset the downturn in domes- 
tic construction, where reve- 
nues fell to SKr6.7bn from 
SKr'Mbn. 


During the first half the 
group established a Finnish 
subsidiary and bought the 
Beers Construction group in 
Atlanta, Georgia, as part of an 
in ternational expansion drive, 
ft wants international business 
to reach 35-40 per cent of group 
revenues to reduce its expo- 
sure to fluctuations in the 
Swedish building sector. 

Skanska noted that Swedish 
hfliwfng starts b«wi dumped to 
3,300 units In the first half 
from 5,644 unite; It said the 
extremely low level of residen- 
tial activity created “major dif- 
ficulties for Swedish contract- 
ing operations," although there. 
had been a alight improvement 
-in the road and civil engineer- 
ing sector. -- 


Telia earnings increase fourfold 


By Christopher Brown-Humes 

Telia, the state-owned Swedish 
telecommunications group, 
yesterday announced a surge 
in first-half profits to SKr3.4bn 
(3441m), nearly four times the 
SKr865sm achieved last year. 

It said foil-year earnings 
would be considerably hi gher 
than last year's SKr3.95bn 
level even though it antici- 
pates greater competition and 


lower prices in the autumn. 

The group said It benefited 
from improved operating mar- 
gins, .lower capital costs and 
the sale of Teli AB to Ericsson. 

Operating revenues rose 7 
per cent - to SKrl8^bn while 
costs were reduced by a similar 
amount to SKrll.OSbn. This 
left the group with .operating 
income of SKr730bn, against 
SKrfi.70bn. 

Telia said it had noted a 


mariratf increase in the inflow 
of orders from big customers In 
the commerce and service sec- 
tor. 

It added that traffic revenues 
in the switched telephone net- 
work were 2.6 per cent htghw 
than a- year ago while the num- 
ber of subscriptions had begun 
to rise again after a decline in 
1993. "Mobile telephony contin- 
ues to experience strong 
growth," it said. 


NOTICE .OF. REDEMPTION 
Mortgage Securities (No.2) PLC 
£150,000,000 Mortgage Backed Moating Rate 
Notes due 2028 


NOTICE IS HEREBY GIVEN lo the holders of the Mortgage Becked 
Floating Bate Notea due 2028 (the "Note* 1 ) of Mortgage Sccotmti (No.2) 
Pl£ (the Tamer*) that, pursuant to the Term* ud Cowmtiowa of the Notes, 
the Matter has determined that, in accordance with the redemption 
prorinoos. Available Redemption Fuads a* defined in the Terms and 
Conditions in the amount of £5.200,000 «i he affined on 15th Sep tember . 
1994 (the *Redamptiai Date*) to r ed eem a Eke amount of Notes. The 
Notes selected by drawing in lots of £100,000 for redemption on the 
Redemption Date at a redemption price (the *Bedemplion Price") eqnel to 
their principal amount, together with accrued interest thereon are as 
follow*; 

OUTSTANDING NOTES OF £100,000 EACH BEARING 
THE DISTINCTIVE SEHIAL NUMBERS SET OUT BELOW 


SZ9 

544 

543 

580 

581 

599 

619 

684 

787 

810 

827 

847 

873 

883 

961 

985 

1421 

1032 

IKS 

1072 

1089 

1M1 

1103 

' UK 

U07 

1119 

1171 

1174 

11SS 

1189 

1271 

1289 

1296 

LM1 

1322 

1374 

1410 

1445 

1451 

1480 

1498 

TteSt 

1858 

1929 

2000 

11U 

2112 

2119 

2124 

2124 

2141 

2143 




MBjtoLEiEhBdmt 

t Company fiiiw m a i fr— fa ■ S.A. 

2 Bonkmrd Royal 
L-2953 Luxembourg 


The Notsa may he suit mulcted fcr redemption at the iptcifirdofliBca Bated 
below: 

Paying Age nt 

Morgan Guaranty Trust 

of New York 
60 Victoria Embankment 
London EC4Y0JP 
In i 

and Bartender of snek Notes together with all o am* to red Coupon a 
appertaining thereto, on or within a period of ten years and fire yean 
respectively, alter the Redemption Date. Such payment will be made in 
sterling at the specified office of the Prmdpal Paying Agent or at the 
specified office of any Paying Agent hy sterling cheque drawn on a towb 
desriag branch of, or transfer to a pounds sterling account marmta.iwd 
by the payee with, a bank in London. On or after the Redemption Dale 
interest shall cease to accrue on the Notes which are the snfajeet of tins Notice of 
Redemption. 

MORTGAGE SECURITIES (NO.2) PLC 

By: Morgan Guaranty Trust Company 
or Principal Paying Agent 
Dated: 1st September, 1994 




m 


Republic of the . 
Philippines 

US$5,313,000 Series 1992 A 
Floating rate bonds 2010 

The A Bonds wM bear Interest 
at 6. 125% per armum for the 
period 1 September 1994 10 1 
March 1995. I nt e re s t payable 
on 1 March 1995 per USS 1.000 
note wBlamomtto USS3&8Q. 


tt Company 

JPMorgan 


FGF (BERMUDA) LTD 
USUKJOMMKM 

ELOAHKG BAIT NOTES DtJE IMS 
Mattel I* feamw tfvea am ter tfw beam 

pmtod tom l Smnatear UM m l. Vmth 

MM me nece, mb any an tatanat am or 


etCMOMM. 

As Agent Buk 


Voyager 

Secu ri ti e s Limited 

ilncoTpareadtatth linriird Wahtj 
m de Cayman UandsJ 

U.S. $100,000,000 
Seemed Hasting Rate 

Notes doe 1992*1996 

For the Interest: Period liar 
August, 1994 to 30th Novem- 
ber, 1994 the Notes will carry 
an Ineees? Rate of £.2% per 
annum with Inrcrett Amounts 
of U-S. £183-61 nod U.S. 
$1,959.03 Sew Note* with orig- 
inal principal amounts of U.S. 

3100,000 and U.S. $250,000 

respectively payable on 30th 
November; 1994. 




Company. London Agent Bonk 


Banque Indosuez 
US- $200,000,000 
Homing Rue 
None* due 199? 

Fen the three months -31st 
August, 1994 1» 30ch November, 
1994 the Notes will carry 
an i nte r est rate of 53125% per 
annum and coupon araxmr of 
U.S. $134.29 per U3. $10,000 
Now, and US. $3357.20 per 
U.S. 3250,000 Note. 

Usaignte faiafflfcm tectE Bfa a t 


IBBaalefaalmt 

QcZ«,Jai 


Ce—gaaftl n it d aM As— iB—fc 


Interim dividend 


<hw 


KonMcffiku BofaWessanen nv 


The undersigned announces 
that the Management Board of Koninld^M BoteWessanen nv, with the 
appiwal of the Supervisory Board, has decided todstrfcutaan interim 
dividend tor the 1994 linanciaf year o>DlLOia2 hi cash per ordtovy share 
ol M. 200. 

On submission of dhidand coupon no. 4 of the depositary receipts tor 
onSnary shares. Dfl. 032 wfB be payable as from September 12 1994 per 
depositary receipt for one onSnary share of Dfl. 200, being the 
interim cSvidend less 25% dividend tax, at the offices of 
ABN AMRO Bank N.V, MeesFferscn N.V., Internationale Nederianden • 
Bank N.V. end Kempen & Co. N.V. in Amsterdam, the Netherlands. 
Haidars of CF depositary receipts wffl receive their cSvidend through the 
institutions at which the dividend sheets of the* depositary receipts were 
depoatod at ttw ctose of business at Saptembar 1, 1994.- 
Copies of the interim statement can be obtained firxn the company 
(P.O. Box 410, NL-1 180 AK AmsteAreen). -.- 


Stichtfog Ad nAt ist iB t ie kadOtr 


van aandelen KonH^te BafsMfesswwi 
Amsterdam. August 31, 1994 


AN IMPORTANT NOTICE TO 
HO LDER S OF WARRANTS ISSUED BY 
AUSTRALIA AND NEW ZEALAND 
BANKING GROUP UMTEEL 

{AJCN 005 367 SZ^C^NZT) 
relating bp Silly paid pri m a r y jaa of SAQ50 ah m 
COLES MYER ETD (W2N. 004 089 936) 

ANZ HfciltEHr NUUftlBiHiilifaief the above VUuranei ttui die Exetcae’ 
ftriod fee the atxree Whnaeei andt at Xlttoam (local rim e) in Bnarii or 
Ir i wiri bftgg Qfer Whreancs recorded in theboolo of riw vj,ar rr nvAi, 
respeomd^ « 26 September 1994 and that the Expiry Daw for the 
Wa rrant* b 30 Sep t e m ber J994 

For each 3000 Utauuu submitted for cxctchc, the Holder b currently 
aaMed toroxive. in ag gnr gaa r , 6p5D Share* In Galet Myor Ltd. flaamcly. 

4500 dares foe the Site 21)00 ’Wknare eancited and a funte 23S0 State* 

far the gtber 1000 Wc ra nu fr. 

fa aoconbnce with Cant&jcn 4.8 (1$ of the Gaodickn of the TCjram 
ANZ betcbyDodSeaHoidcnthar- 

* Ufexmam not emmaed on or before the Expiry Date (30 Sept. 94) wfflLfse. 
- Exercise Notices mas be deferral before ttXbm (local cane) in foe 
RefcMUH Location on 26 September 1991 
ff (fat Exescac fire h leu don SK of dm Mulct 1&fae cf if* Urafcrfying 
Securities which relate to i Vthcmnr ai at efae Expiry Date then Qn suomarft, 
if a^teanchnotcrmdjed.dicHdtfcri*eixi£ted toan Aaeised Tfitae . 
Bqnea; m aceocrianw the CoafiaoBs of the Vftnana. That paymet* 

will not arejsarily caxeqxmd m dm nine of rim Uoderiyfag Securitie* had 
the Vkmubcaiu uu fanie Aw.wil IMue Binutit k ai • 

huattim rioDarneqaal to 95% of d* Market \Uue «f the Umfcdymg 
Seoiride* tiac the fisjAryDne less die Eaariie Psfa- (UEStQ. - 

Cifilrafitetl tentam bgnnticehawetheaagieBieMnh^ ml wi 

af the UhmaA. Hdklcg of \Utmnci Aockl refer n-. rW (ne 







■fi ’- ' 


r . . 




Unco S; 
HR ft 




r. liji 


it- • 

_y. m , ! j ■ . 


.351'.... ■ 

SLC.. , 

. - 
■■ ■ 

Ez.: ■: . ■ ■ 

a,“fi • 

r,.„ 

“ - ■ ■ i 

tor-:- v : • 
t:- .. 

Stv 

. - • 


^ssan 


^fcSeai:, 


•*V, . 

















ans! 


f niU'itild 


dhwknd 



FINANCIAL TIMES THURSDAY SEPTEMBER 1 1994 


19 


INTERNATIONAL COMPANIES AND FINANCE 


AGF confident 
despite decline in 
first six months 


ByAHco Rawsthom 
in Paris 

Assurances Generates de 
Fra nce, the French insurance 
group which is a candidate for 
privatisation, yesterday 
announced a fall in net profits 
to FFrl.Mbn ($l92m) for the 
first half of 1994 from 
FFrl.4Ibn in the same period 
last year. 

However. Mr Antoine Jean- 
court-Gali gnani , chairman, 
said AGP was on coarse for an 
increase In net profits for the 
fan year to between FFri.46bn 
and FFrL.7bn. This compares 
with net profits of FFr977m in 
1993. 

“We're extremely cautious," 
he said. “But our forecast at 
the moment is that profits for 
the fall financial year will be 
40 per cent to 60 per cent 
higher than those for the first 
half." 

Mr JeancourtrGalignani also 
stressed that AGF would be 
ready for privatisation by the 
end of September, the deadline 
set earlier this year when the 
Balladur government outlined 
its privatisation plans. 

The government has since 
appeared cooler about the pros- 
pect of selling Its AGF shares, 
in favour of concentrating on 
the proposed partial privatisa- 


tion of the Renault motor 
group. 

AGF has made no secret of 
its hopes that the sale will go 
ahead this aut umn “it’s up to 
the government to take the 
decision,'’ said Mr Jeancourt- 
GalignanL 

Meanwhile AGF is reorganis- 
ing its assets. 

Mr Jeancoort-Galignanl con- 
firmed it in tend ^ to sell a 43 
per cent stake in Banque Eran- 
caise du Commerce Ext&ieur, 
which is held jointly with the 
Credit Lyonnais banking 
group. 

He also affirmed that AGF 
had begun talks with Suez, the 
French holding company, to 
acquire the latter’s 26.7 per 
cent holding in SFAC, a credit 
Insurance concern. 

AGF already owns 45 per 
cent of SFAC and hopes to take 
control. 

Mr Jeancoort-Galignanl 
declined to comment, however, 
on the progress of talks for 
AGF to raise its stake in AMB, 
the Ger man insurance com- 
pany of which it now owns 33.5 
per cent 

AMB doubled its contribu- 
tion to AGF*s interim figures, 
providing net profits 
of FFrlOSm, against FFr54m 
in the first half of last 
year. 


Banco Santander sells 
1.47% Banesto stake 


By Tom Bums in Madrid 

Banco Santander has sold L47 
per cent of Banesto, the trou- 
bled bank it took over earlier 
this year, to La Caixa, the Bar- 
celona-based savings bank. The 
deal could foreshadow wider 
agreements between the two 
leading* domestic finan cial 

ma ti t ufjoiia . 

La Caixa, which paid 
Pta7.4bn (857.4m) for the stake, 
said the acquisition, an unprec- 
edented investment by a 
savings institution in a leading 
commercial bank, was a 
"purely financial investment". 
It rejected speculation that U 
formed part oF a “non-aggres- 
sion pact” with Santander. 

The savings bank paid 
Pta830 per Banesto share, well 
below the average trading 
price during August of more 
than Pta 1,000 for Banesto 
stock. Santander had paid 
Pta762 per Banesto share when 
it took control of the bank in 
April. 


It emerged, however, that 
the purchase, which makes the 
savings bank Banesto 's fourth 
largest shareholder, coincided 
with a Ptal3.6bn sale by La 
Caixa to Santander in early 
August of 0.7 per cent of its 
equity in TelefOnica, the 
national telecommunications 
company. 

La Caixa, ranked second 
after Italy’s Cariplo among 
European savings banks, 
earned PtaSbn in capital gains 
from its Telefonica share sale 
to Santander. The disposal low- 
ered La Caixa’s equity in Tele- 
fonica to 1.3 per cent although 
it remains one of its largest 
individual shareholders. 

Market sources believe that 
there could he further deals 
between La Caixa and San- 
tander, which has become 
Spain’s leading commercial 
bank after its takeover of 
Banesto. 

Santander now holds 68.4 per 
cent of Banesto and intends to 
cut this to about 50 per cent 


Bols Wessanen slips 7.9% 


By Ronald Van de Krol 

Bols Wessanen, the Dutch food 
and beverages group, blamed a 
downturn in its beverages 
activities for a 7.9 per cent 
decline in first-half net profit 
to FI 110.2m (US$63.0m), from 
FI U9.6m a year earlier. 

It said the decline was partly 
due to poor weather during the 
second quarter in Italy. In the 
Netherlands its profits from 
spirits fell because of an 
increase in excise duties. 


Group turnover rose by 6.4 
per cent to Fl236hn, with most 
of the increase due to acquisi- 
tions, but operating profit fell 
by 3.6 per cent to Fl6&8m. 

In spite of the first-half 
decline, which caused the com- 
pany’s shares to feu nearly 10 
per cent on the Amsterdam 
stock exchange yesterday, Bols 
Wessanen predicted that fall- 
year net earnings per share, 
excluding extraordinary items, 
would at least match the 1993 
figure. 


Seagram 
climbs 32 % 
to $ 224 m in 
second term 

By Robert G&bens fn Montreal 

A strong contribution from 
24.5 per cenbowned Da Pont, 
the US chemicals group, lifted 
Seagram's second-quarter net 
profit by 32 per cent to 
US$224jn, or 60 cents a share, 
from $lT0m, or 46 cents, a 
year earlier, 

Seagram, one of the world’s 
top three drinks groups, said 
its revenues from beverage 
operations rose Z per emit to 
DSF1.45bn, with good gains at 
Tropicana, the fast-expanding 
juice unit, offsetting a modest 
decline in spirits and wines. 

Tropicana achieved a 41 per 
cent share of the US ready-to- 
serve orange juice market, up 
from 37 per cent a year 
earlier. 

Beverage operating income 
overall was 6144m, down 
614m, partly due to exchange 
factors. Latin American mar- 
kets were weak, especially in 
Venezuela, but US spirits sales 
staged a tnmroond, with a 
strong contribution from Sea- 
gram’s new vodka brand. 

Mr Edgar Bronfman Jr, pres- 
ident, estimated that fiscal 
1995 sp iri ts and wines operat- 
ing income will exceed the fis- 
cal 1994 level of 6666m. 

Seagram’s share of Da 
Pout's urn-emitted earnings 
jumped to 6117m, against 
651m, and dividend income 
was 677m, compared with 
674m. Da Pont has been 
reporting father profits with a 
strong recovery in chemical 
prices, especially in the 
US. 

Seagram's overall first half 
earnings were 6646m, or 93 
cents, up from 833&n, or 89 
cents, a year earlier, while 
beverage revenues totalled 
62.7bn, np from 82.6hn. The 
share of Du Pont profit was 
6198m, against 696m, and divi- 
dend income was 6153m, 
against 6146m. 

The quarterly dividend is 
being raised to 15 cents from 

14 cents with the September 30 
payment. 

Seagram also owns almost 

15 per cent of Tbne-Warner, 
the US communications 
giant. 


ITT chairman checks out Ciga 

US group poised to launch second bid, says Andrew Hill 


M r Rand Araskog. 
chairman of ITT, the 
US conglomerate, 
may be able to reward himself 
with a weekend at the famous 
Grftti Palace hotel In Venice 
this autumn. But he has 
probably not yet made his 
reservation- 

Seven months attempting to 
gain control of ni g a . the Italian 
hotels group which owns the 
GrittL have taught Mr Araskog 
that when it comes to Italian 
takeover bids - even those 
agreed by the target company 
- it is best not to plan too far 

ahnaii 

Undo: the control of Fimpar, 
the Aga Khan's holding 
company, Ciga accumulated 
borrowings of about Ll,000bn 
($628 xe 0 by the end ol 1992, and 
at the beginning of last year 
asked Mediobanca, the 
powerful Milan merchant 
bank, to study plans to cut its 
borrowings. 

Forte of the UK stepped in 
with a rescue plan last 
autumn, before Host Marriott 
of the US and ITT, which owns 
the Sheraton hotel chain, 
tabled rival fads. 

In February, ITT appeared to 
have outbid Forte for the right 
to buy Ciga. 

Since then, however, a 
combination of bad judgment 
and bad luck has forced ITT to 
abandon its original plan and 
start again, laboriously 
building a stake in Ciga to the 
point at which it is now 
poised to launch a second 
formal bid for the loss-making 
company. 

This being an Italian bid, 
nothing is official. From its 
New York base, ITT will say 
only that it is complying with 
Italian takeover regulations 
and will make a statement 
when appropriate. 

Consob. the Italian stock 
exchange authority and 
takeover watchdog, has issued 
no official communique. 

A terse statement in July, 
welcoming the appointment of 
ITT/Sheraton directors to the 
Ciga board, is the nearest Mr 
Araskog himself has come to 
acknowledging that hotels like 
the Gritti, the Menrice in Paris 
and the Principe di Savoia in 
Milan are within his grasp. 
However, sources confirm 


Acquisitions help lift 
VNU profits by 32% 


By Ronald van de Krol 
in Amsterdam 

VNU, the Dutch publishing 
group, saw net profit rise by 32 
per cent to FI 79m ($4&2m) in 
the first half, helped by acqui- 
sitions, cost-cutting and 
economic recovery in some 
markets. 

Operating profit rose by 20 
per cent to FI 144m, matching 
the rate of increase in turn- 
over, which rose to FlL27bn 
from FlL06bn. 

Acquisitions, including the 
purchase of BPI Communica- 
tions of the US, publisher of 
Billboard and other magazines, 
accounted for slightly more 
than half of the turnover 
increase. 

Net profit expanded more 
sharply than operating profit 
because of lower interest 


charges and lower taxes. 

VNU said its Dutch and Bel- 
gian commercial television 
activities benefited from 
increased demand for brand 
advertising: In the UK, where 
VNU publishes trade and busi- 
ness magazines, the company 
reported a strong market 
recovery. 

The Dutch company took a 
FI 20m charge against operat- 
ing profits at its US business 
information group to reflect 
more conservative valuations 
of both capitalised software 
and database costs. 

In January, VNU announced 
a $220m US deal giving it con- 
trol over two “bibles" of the 
West Coast entertainment 
industry, the daily newspaper 
Hollywood Reporter and Bin- 
board. It also took over 17 
other US trade magazines. 


CITICORP O 

MORTGAGE SECURITIES, INC 

REJVUC Pass-Through Ce rt ifi cates, Series 1987-13 
US$57,057,000 Initial Stated Amount 
of Ctsoa A-1 CitittJrtificHtes 

Kbr the penal la September. 1994- to la December. 1994 the 
Class A-l Cntocrtiikaics will carry an Interest rate of 5.75% per 
annum with an Intcrea amount of USS2-53 per US$1,000 (the 
Initial Stated Amount of an individiial Citjcatificato) pa yable 
on bt December, 1994. Tte Stated Amount of the CiocenificHes 
outstanding will be 17.59362485* of the bridal Stated 
Amount of the Ciricertifirates. or US$175.94 per individual 
Cmcenifiouc until bt December, 1994. 


MS«BWmtMr,W« 


Bank at MiMttaa NT A SA, 


Hi 


SOCIETE CONCESSIONAIRE FRANCAISE 
POUR LA CONSTRUCTION ET SEXPLOITATION 
DU TUNNEL ROUTIER SOUS LE MONT-BLANC 
FRF 450,090,000 FLOATING RATE NOTES 1987-1997 

I uecordanrewid, (he P™^ of ^ 

j the me lor the period from August 31, 1994 » November 30. 1994 has 

! teen fixed at 5.81254?- per annum. 

Nrtvemter 30. 1994 interest of FRF 146.93 per FRF 10,000 nominal 

* i-> - * frf imfm 

anunnt of the Note will be *w against Coupon no. 29. 

w mdafing notices relating M die rpjatttrty detemwatinn of 

ody Ecooomip. ct Ftaatite- 

(Paris) and in "The FSunciri' Times" (lnndoaj. 

Fiscal Agent j 

BANQUE 


Currency or Bond Fax - FREE 2 week trial 
also daily gold and silver faxes 

txUW rate specialists for ever JO r^r, 


ECUMKMJOOJM# 

CaisseFrangaisede 

D6veloppement 

M a i l V 

CMcm Central* de Cooparadm Eeonomafoe 

Floating Rate Notes due 200G 

For the period from August a, 1904 U> 
N o ve mb er SO, 1934 t he Hate * wBl csrrj 
an Interest rate of 5J£23Z% per annum 
with cm Interest amount of ECU M7J9 
pa- ECU AOOd and of ECU U17L90 pa 
ECU MOuMO Note 

The relevant interest payment dale will 
he No vember 30.1994- 

AgmBnle 

n 

Banque Bum bas 





Sovereign (Forex) lid. 

24 hr Faroign Exchange 


CoMpctitiwI 
Daily Fax Service 
lab 071-931 9188 
tac 071-93! 7114 

d2o BecUsphoe him Rood 

iMkaWnWOHE 


u„,o15% 

off electricity 




021 423 3018 

Poweiiine 


to Enfltasi sod Met 




Mta Bf 


MqallM* 

*0U*1 


RM 

fttt 

Whw 






0030 

gpsfegXTj ■ 

1005 

0100 


9L68 

0190 


507 

0200 


057 

nwn 

10.55 

&S7 

0300 

1053 

057 



057 

0400 

«L56 

057 

0430 

1055 

057 

IWW 

1063 

057 

0S30 

1050 

ore 

oren 

1050 

ore 

0630 

13.10 

lore 

0700 

1022 

X2JJ0 

0700 

1002 

1071 

OBOO 

1051 

1045 

OKU 

2151 

17.16 

0000 

AU 

1046 


2151 

1&01 

1000 

2752 

2022 

1030 

2035 

7493 

1100 

27.16 

1040 

1130 

2015 

1050 

iaoo 

3022 

20*4 

1230 

3011 

2024 

1300 

2X38 

2993 

1330 

2057 

1046 

1400 

71JD0 

1739 

MOT 

21 JW 

WAS 

1500 

2072 

1043 

1530 

2071 

17.18 

1800 

2073 

17.16 

1030 

2157 

17.16 

1701 

3253 

1046 

1730 

33.42 

1040 

1000 

32.16 

17.16 

1830 

2039 

1046 

1000 

VOSS 

17.15 

1930 

1030 

17.12 

2000 

1002 

17.12 

2090 

2&B7 

1060 

2100 

354A 

1085 

2130 

2857 

28.10 

2200 

8020 

28.10 

2230 

tarn 

28.10 

2300 

17.73 

1845 

2330 

1040 

1U» 

2400 

1822 

13.65 

K„;-nfreJ 

1 9 a 

_jl L A. 

LaMbwJ 



•4 1 1 


«- * 1 1 




IOCS 

&S8 

357 

ftS7 

asr 

057 

057 

057 

OG7 

057 

ore 

a on 
1350 
1453 
1038 
10.10 
1950 
21.11 
2050 
3158 
3153 
21.15 
81.18 
23-11 
3150 
3158 
21.11 
2054 
21.10 
21.10 

1950 
1081 

1951 
21.11 
SI .11 
1951 
2150 
1950 
1077 
19 77 

1054 

1055 
3474 
5074 
9074 
1050 
1024 
1850 


as«i ai)i»pHM awa»a aw noe 


E? aw* aT a* - 


Isssss&sis 

ISSKSESsSSj^ 


Stars prion (Ura -TOty 


a 

•;V' ‘ % •' 

■■tow 

■a, 


^ I H 




1090. 91 92 

-Sourcec FT Oaphte 


98 94 



Rand Araskog: bas spent seven months trying to win Ciga 


that ITT plans to launch a 
formal bid for 35.25 per cent of 
Ciga, at a price of about Ll.lOO 

The offer will probably have 
to be made by September 16, 
the start of the next Milan 
stock exchange trading 
account. 

Under Italian stock exchan ge 
rules, nr must fad at least the 
average price it paid for Ciga 
shares accumulated on the 
market 

If successful, the bid will 
double the US company’s stake 
In Ciga to just over 70 per cent, 
and. cost ITT a further L4Q0hn 
on top of the L400bn or so the 
company has already spent 
buying its existing 35 per cent 
holding. 

T he offer price is nearly 
50 per cent higher than 
ITT’s original 
nnsoccessfal bid, but it is not 
enough for a hard core of the 
company’s vociferous minority 
shareholders. 

Some have already said they 
are unhappy with the small 
premium to the current market 
price of about LI, 080 and will 
reject such an offer. 

Their continued presence on 
the Ciga shareholder register 
would be a mixed blessing for 
ITT. Although the US group 
only needs 51 per cent of the 
company, it has already seen 
how determined Italian 
investors can npset carefully 
laid plans. 

In April, ITT was forced to 


abandon its original hope of 
acquiring Ciga through a 
complex financial manoeuvre 
masterminded by Mediobanca. 

A deliberately overpriced 
rights issue was supposed to 
fall, delivering Ciga Into the 
hands of its creditor h»wv« anri 
thence to HT for the 
equivalent of L740 a share. In 
preparation for takeover, a 
team of ITT/Sheraton 
executives came to Italy to 
start examining the real state 
of Ciga's assets. 

Unfortunately for ITT and 
Mediobanca, investors snapped 
up the issue of shares. An 
angry and embarrassed ITT 
withdrew its management 
team, claiming that more than 
L300bn of capital investment 
was needed to bring the Ciga 
hotels up to a satisfactory 
s tandar d 

ITT continued to buy shares 
in the company, however, 
although the tactics this time 
were much less aggressive. At 
a stormy shareholder meeting 
in early Jiily, the Aga Khan’s 
managgmprit of the company 
was fiercely criticised. 

It was agreed by the 
seven-strong board that three 
directors would step down to 
be replaced by ITT-Sheraton 
nominees. As a result, Consob 
decided the US group 
effectively controlled Ciga, 
even though it directly owned 
less than 20 per cent of the 
group. 

Italian investment funds 
which took stakes in Ciga 


during or just after the capital 
increase are happy that the 
hotels group will be managed 
by ITT-Sheraton. but some are 
upset about the way in which 
ITT has gone about the 
takeover. 

Although the funds claim 
they are long-term investors, 
they see the Italian group, now 
it is recapitalised, as a valuable 
play on real estate values, 
worth more than Li,200 a 
share. “For an international 
company coining into the 
Italian market for the first 
time, they could be a bit more 
generous," says one fund 
manager. 

I n addition, some investors 
were irritated by the way 
in which ITT brought its 
stake up to 35 per cent in 
August, sweeping up shares on 
the market while there was 
still uncertainty about the 
terms of a future bid. 

ITT is now said to have 
lodged its formal offer with 
Consob, making further 
purchases illegal, but the US 
company’s earlier forays into 
the market were within Italian 
rules. 

In any case, in spite of bid 
speculation, the Ciga share 
price rarely exceeded Ll.100 
during August 
In FITs defence, Mr Araskog 
could point out that only a 
foolish traveller offers to 
pay more than the advertised 
rate for a suite at the Gritti 
Palace. 


Ciba result 
undermined 
by financial 
factors 

By lan Rodger In Zurich 

Ciba, the Swiss pharma- 
ceuticals and chemicals group, 
reported unchanged first-half 
net income of SFrl.4bn 
($1.05 bn), as unfavourable cur- 
rency and financial factors 
undermined a "creditable" 
operating result. 

Mr Alex Krauer, chairman, 
forecast that net income in the 
fall year would be comparable 
to last year's SFrl.78bn. 

first-half sales were down 2 
per cent to SFrtl.&ton, but 
operating income rose 3 per 
cent to SFr2bn. Ciba said oper- 
ating profits expressed in local 
currencies jumped by 19 per 
cent, with two-thirds of the 
growth coming from better 
margins and the remainder 
from expense control. 

However, the group's finan- 
cial income, based on liquid 
funds of SFrtJlbn at the end of 
last year, plunged 30 per cent 
to SFrl99m, largely because of 
the decline in market values of 
many investments. 

The group's currency hedg- 
ing activity also suffered, 
swinging from a SFr44m profit 
to a SFr6im loss. Ciba said it 
bad been able to compensate 
partially through hedging the 
rise in the Swiss franc’s value, 
but the cost was high. 

Sales in the healthcare divi- 
sion were down 2 per cent to 
SFr4J24bn, but up 3 per cent in 
local currencies. Pharmaceuti- 
cal sales were flat at SFrtAbn, 
hurt by pressures from govern- 
ments to cut prices. Generic 
competition for the leading 
anti-rheumatic drug Voltaren 
should start to have an impact 
in the second half. 

However, sales of Ciba 
Vision, which is acquiring the 
ophthalmic drugs business of 
Johnson & Johnson, advanced 
6 per cent to SFr530m. 

The self-medication division, 
following the acquisition of 
Fisons products, raised 
its sales by 3 per cent to 
SFr485m, 10 per cent in local 
currencies. 

The agriculture sector also 
reported a 2 per emit decline in 
sales to SFr3.02bn, a 3 per cent 
rise in local currencies. 


IIIIIIIIIIIIIIIIIIIIIIIIIIVIIIIIIIIIilllllllllllllllllllllllllllllllllllllllHIlIlIIIIIIII 

End of Month S.G.Warbure Warrant Valuations 



as at 31st August 1994 




TYPE 

CURRENCY 

SPOT 

STRIKE 

PRICE 

EXPIRY 

Single Stocks 







BHP 

Call 

AUD 

20.52 

19-S0 

230 

29th Jun 95 

Berner 

Call 

CHF 

1190 

1250 

16.15 

20th Jun 96 

Danzas 

Call 

CHF 

1675 

1600 

41.00 

2nd Aug 96 

China Light Sc Power 

Call 

HKD 

39.90 

41.00 

1.03 

2nd Jan 96 

Dao Heng Bank 

Call 

HKD 

26.70 

32.00 

038 

25th Jan 96 

Hong Kong Electric 

Call 

HKD 

27.40 

29.20 

0.44 

6th Feb 96 

Hong Kong Telecom 

HnfriiKnfl whflwifMU 

Call 

Call 

Call 

Call 

HKD 

HKD 

HKD 

HKD 

17.00 

38.80 

23.30 

16.40 

15.60 

36.00 

17.00 

13.05 

033 

0-93 

7.08 

5.83 

24th Nov 95 

21st Dec 95 

6th Sep 95 

21 si Dec 95 

lAkltMlUUM fTIMlUinM 

Hysan Development 
Malayan Bank 

Sun Hung Kai Properties 

Call 

HKD 

57.30 

50.00 

1.69 

2nd Jan 96 

31st Oct 95 

M etallgesdlschaft 

Call 

DM 

215.00 

250 

6j60 

Philips Electronics 

CaU 

NLG 

57.70 

54.18 

935 

8th Sep 95 

Mondadori 

Call 

ITL 

14388 

16830 

296 

22nd Dec 95 

Saipem 

Capped Call 

ITL 

3913 

4246 

373 

30th Mar 95 

Sip 1 

Call 

ITL 

4608 

3832 

1350 

14th Jan 96 

1 Sip 2 

GUI 

ITL 

4608 

5237 

473 

28th Jun 96 

Stet 1 

CaU 

ITL 

5095 

4725 

1101 

14th Sep 95 

5tet2 

Call 

ITL 

5095 

6770 

404 

28th Jun 96 

Thai Fanners Bank 

CaU 

THB 

168 

127.80 

64.75 

17th Jan 96 

Baskets 

Australian Insurance 

CaU 

AUD 

109 

101-57 

2.15 

3rd Jan 96 

European Airlines 1 

Call 

£ 

482 

320 

16.92 

3rd Feb 95 

European Airlines 2 

Call 

£ 

482 

468.91 

932 

9th Mar 96 

European Multi-Media I 

Call 

£ 

2204 

2028.57 

3.13 

28th Sep 95 

European Multi-Media 2 

CaU 

£ 

2204 

2475 

138 

28th Sep 95 

European Steels 

on 

DM 

4059 

2550 

155 

12th Jan 95 

German Mechanical Eng 

CaU 

DM 

2861 

3000 

3.49 

3rd June 96 

UK Banks 

Call 

£ 

102.00 

114.75 

0.44 

1st Jun 95 

UK Food Retailers 

rail 

£ 

114-50 

106.25 

2.01 

9th Nov 95 

UK Pharmaceuticals 1 

Call 

£ 

104 

98.05 

0.91 

26di Jan 95 

UK Pharmaceuticals 2 

CaU 

£ 

104 

87-50 

2J& 

20th Nov 95 

UK Support Services 

CaU 

£ 

84.50 

107-50 

0.17 

2nd Aug 95 

UK Water Companies 
Italian Industrials 1 

CaU 

£ 

105.00 

104.75 

0.82 

5th May 95 

CaU 

ITL 

20374 

19665 

421 

31st Aug 95 

Italian Industrials 2 

Call 

ITL 

20374 

24549 

142 

31st Aug 95 

Italian Recommendation 

CaU 

ITL 

393023 

489229 

457 

13th Oct 95 

Swedish Capital Goods 

CaU 

SEK 

108845 

112054 

16.84 

20th Oct 95 

Asian Oil Sector 

CaU 

USD 

1.117 

1.00 

032 

23rd Jun 96 

European Commodities 

Call 

USD 

3967 

3600 

8.80 

10th Jun 96 

8th Dec 95 

Indo-China 

CaU 

USD 

0.883 

1.00 

0.09 

Korean Blue Chips 

Call 

USD 

11587 

KW9000 

6.18 

22nd Dec 95 

Singapore Shipyards 

GUI 

USD 

9J8 

SGD10.00 

1.08 

14th Nov 95 

Taipei Property 

Call 

NTD 

1087 

800 

491 

2nd jun 96 

Taiwanese Blue Chip 

Indices 

Oil 

NTD 

1303 

1000 

382 

30th Mar 95 

FUSE Mid-250 Index 

au 

£ 

3817 

2900 

9.45 

17th Mar 95 

FTSEMid-250 Index 

Call 

£ 

3817 

3470 

438 

17th Mar 95 

FUSE Mid-250 Indoc 

CaU 

£ 

3817 

3670 

236 

17ch Mar 95 

FTSEMid-250 Index 

au 

£ 

3817 

3900 

1.73 

17th Mar 95 

FTSEMid-250 Index 

CaU 

£ 

3817 

3945 

3.17 

17th Jan 96 

FTSEMid-250 Index 

Put 

£ 

3817 

2900 

0.05 

17th Mar 95 

FTSE Mid-250 Index 

Put 

£ 

3817 

3470 

1.07 

17th Mar 95 

FTSE Mid-250 Index 

Put 

£ 

3817 

3270 

037 

17th Mar 95 

FTSE Mid-250 Index 

Put 

£ 

3817 

3900 

2.90 

17th Mar 95 

BQ-30 

CaU 

DEM 

16.1 

16.94 

231 

19th Jan 96 | 

BC2-30 

Put 

DEM 

16.1 

16.94 

2.96 

I9th Jan 96 

Relative Performance 






Investoc/Cocc Holdings 

Call 

SEK 

+0.37% 

+/- 0% 

155.00 

21st Dec 95 

Investoc/OMX 

au 

SEK 

+1.02% 

+/-0% 

148.00 

21st Dec 95 

Volvo/OMX 

CaU 

SEK 

+36.92% 

-10% 

474.00 

23rd Feb 95 

Volvo/OMX 

Call 

SEK 

+36.92% 

+!- 0% 

389.40 

23rd Feb 95 

Volvo/OMX 

CaU 

SEK 

+36.92% 

+10% 

311.90 

23rd Feb 95 



S.GWarburg 





S.G. WARBURG GLOBAL 
EQUITY DERIVATIVES 





rofc tNTORMATlON CONTACT JU5T1N CHITTENDEN ON 071 -860 05 17 REUTERS PACE) WARA 



IlillllllllilllllllllllllllllllllllHIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIUIIIIIIII 



Fs« 








20 


4^ 

Golden Hope 


Golden Hope Plantations Berhad 

(Incorporated in Malays’ 0 ) 


Directors: Registered Office: 

Tin Ismail fata Matamed All (Chafeiran) ] 3 thFoot 

Dud' Abdul Kbafid bin Ibrahim Menus PNB 

Znhi Azatwi bin Zahul Abidin 201 -A, Jatao Tan Rarafc 

Mohammed bin Abdolloh SHOO Kuala Lumpur 

Howe Yoon Chong Malaysia 

Dc Nj Chong Kin 
Abdul Rahman bin RamH 

lb the Members, 

PRELIMINARY REPORT FOR THE 15 MONTHS ENDED 30TH JUNE, 1994 

The Directoa mnonoce that the unaudited result* for die 11 mouths ended 30 ifa June, 1994 were:- 


Group 

15 mouths [2 months 
ended .ended 


Turnover. 

Investment and other income. 
Operating profit. 


30644 

RM'OOO 

8504113 


313.93 

RM'OOO 

593373 


ft 


Company 

IS months 12 mooths 
essscM ended 

30631 31353 

RM’OOO RM'OOO 
101359 81358 


Associated Companies-.. 

Profit before taxation (See Note I) 
Taxation (See Note 2) 


Profit alter taxation but before 

extraonfinaiy items 

Minority interests — 


Extraordinary items (See Note 3) 

Profit attributable to shareholders 

Dividends . .. 

Retained for the period 

NOTES 

1) Alter charging 

- interest — 


- depreciation 


2) Taxation includes 
- Current 


- Deferred . 


- Associated Companies 


- Deferred written back as a result of a 
change in statutory tax rate ... 

- Under provision in prior year . 


3) The extraord ina ry tetna c om p rise the Sallowing: 

Gain on compulsory land acquisition 

Gain on disposal of investment 
Profit on disposal of land 
Gump's share of extraordinary items 
of associated companies 
Surplus on liquidation 


72JB39 

7328 

_ 

131504 

93.014 

- 

163,442 

113335 

_ 

141500 

103516 

- 

10,112 

8.986 

- 

- 

- 

- 

173554 

122321 

- 

141536 

103516 

- 

43375 

31.760 

- 

41,073 

32.425 

- 

130,179 

90,761 

_ 

100557 

71.491 

_ 

12.132 

7.135 

- 

- 

- 

- 

118,047 

83,626 

- 

100,877 

71,491 

- 

143,434 

16^65 

- 

- 

- 

- 

261/181 

100.191 

- 

100557 

71,491 

- 

84451 

68.496 

- 

84551 

68,496 

— 

176330 

31.695 

““ 

I 6 J 206 

2595 


3411 

6J99 


4015 

2,640 


38,123 

28,014 

- 

6590 

5.649 

- 

48309 

37/169 

_ 

36596 

32508 

_ 

225 

(3.038) 

- 

4g677 

(383) 

_ 

602 

471 

- 

- 

- 

- 

(6528) 

(3. »42) 


_ 

_ 

_ 

667 

- 

- 

- 

- 

- 

136,149 

14,053 


— 

_ 

_ 

6335 

- 

- 

- 

- 

- 

- 

2,484 

- 

- 


- 

450 

_ 


_ 

_ 


- 

28 

- 

- 

- 

- 

143534 

16^65 

- 

- 

- 

- 


4) There were no pre-acquisition profits included in the results for the period. 

5) No percentage change was computed as the c unen t results are for a period of fifteen months which are 
not comparable with the previous year. 

6) The Company has changed its financial year cod from 3 1st March to 30tfa lune with effect from 30th 
June, 1994. The accounts therefore cover (be fifteen months from 1st April. 1993 to 30th Juoe, 1994. 

1994 RESULTS 

Profit for the fifteen months recorded an incream of 1 3ft on an nnmmiiwrf basis over that of the previous 
year. The increase is due largely to higher contribution from property development, plantations sod 
investment and other income. 


Profit after taxation but before extraordinary items 
as a percentage of turnover. 


Profit alter taxation and tnmority interests brt before 
extraordinary items as a percentage of shorcboklcn' funds . 

Net earnings per share (in sen)* 

Net tangible asset backing per share — 


15 months 

[2morid»s 

ended 

ended 

31654 

313.93 

Group 

Group 

154% 

153% 

54% 

4.0% 

1LS 

93 

RM2J28 

RM2.10 


* The net earnings per share is calculated based on 99930X499 (1993 - weighted average of 901,994362) 
shares in issue. 

EARNINGS 


Profit fur the first six months After taxation and minority 
interests but before extraordinary items.. 


Profit for the next nine months after taxation and minority 
interests but before extraordinary items. 


15 imintha 

L2montfas 

ended 

ended 

30654 

313.93 

Group 

Groap % 

wvrooo 

RM'OOO 

37541 

314)39 - 

80506 

52587 - 

118647 

83.626 - 


Profit for the fifteen mooths after taxation and minority interests 
but before extraordinary items 

CURRENT YEAR'S PROSPECTS 

The current year's crop production Is estimated to be lower than the previous financial year on an annualised 
basis, la spile of this, plantations profit is expected to be better in the current year if the current tread of high 
commodities prices continues. Resourced -based manufacturing and property development are also expected to 
enhance the Group's profit 

HARVESTED CROPS - TONNES 


FFB 

Palm oil 

Prim kernel.. 
Rubber,. 


15 months 

12 months 

ended 

ended 

30.6.94 

313.93 

4676505 

1,199506 

323580 

238.717 

96581 

68513 

38594 

37538 

10678 

11544 

6056 

6.66S 


Cocoa— ........ — — - 

Copra — — , — 

DIVIDENDS 

1) The Directors will propose u the Annual General Meeting to be held on 28tb September; 1994, a final 
dividend of 5 sen per shore comprising 4 sen less tax and I sen tax exempt and ■ special dividend of 2 sen 
per share less tax, which will bo payable on 24th October, 1994. If the dividend is approved at the Annual 
General Meeting, it is intended that the Transfer Books of the Company will be dosed at 54)0 pm on 
29th September 1994, for the preparation of dividend warrants. 

2) The first interim dividend of 5 sen per share less tax was paid on 25th April. 1994. 

3) The total annual dividend is os folfows:- 


15 months 
ended 
30.654 


12 mnmhs 
ended 
313.93 


Gross.. 


Tax exempt. 


Sen Per Share 

RM'OOO 

Sea FerS&are 

RM'OOO 

(gross) 

(net) 

(gras) 

(net) 

11 

74653 

9 

58626 

1 

9,998 

1 

9670 

12 

84651 

io 

68,496 


COPIES OF THE RETORT 

A copy of the Company’s Preliminary Report will be pasted to shareholders on 5di September. 1994. Copies 
will be available from the Company's registered office and the Branch Registrar; Barclays Registrars. Bourne 
House. 34. Beckenham Road. Kent BR3 4TU. United Kingdom. 


KUALA LUMPUR 
30th Aagml. 1994 


By Order of The Board 
Norim Abdul Samad 



The Toyo Trust & Banking Company, Limited 

The English version of the Annual Report 
and Accounts for the year to 
31st March, 1994 have been published 
and may be obtained from: 

The Toyo Trust & Banking Company, Limited 
Bucklerebury House 
83 Cannon Street 
London EC4N 8AJ 

de Zocte & Sevan limited 

Ebbgate House 
2 Swan Lane 
London EC4R 3TS 


FINANCIAL TIMES 


MANAGEMENT REPORTS 


AUTHORITATIVE 

MARKET 

REPORTS 



+44 <0)71 814 9770 
wemx 

+44 (O) 71 814 9778 


OBITUARIES 

KATHU 9 I UTTIXJOMH, MMd BX 0 W. 


poaeatuSy hi iw ntnoorah year on ZTih 

AoguiiH. npqrKMsoDiyL 


FINANCIAL TIMES THURSDAY SEPTEMBER I 1994 


INTERNATIONAL COMPANIES AND CAPITAL MARKETS 

UK building 
society to 
securitise 


Ansett Airlines helps lift TNT 


By Mtdd Tait In Sydney 


A strong contribution from its 
SO per cent interest in Ansett 
Airlines and continued 
improvements in core 
operations helped TNT, the 
large Australian transportation 
and package delivery group, to 
an equity-accounted profit 
after tax and abnormal items 
of AJ105.1m (DSJTSm) In the 
year to end-Juna. 

Group revenues were 
A$S.69bn, up from A$532bn 
previously. 

The result compares with a 
loss of AJ256.7m a year earlier, 
when TNT faced some heavy 
one-off charges. 


In the latest period, abnor^ 
mg! toms contributed an after- 
tax surplus of A$5ftn, partly 
due to gains on both asset 
sales and foreign currency 
movements at Ansett, in con- 
trast to the 199203 charge of 
ASm.lm. 

However, even at the trading 
level, there was an improve- 
ment. Operating profit before 
tax rose to A$127.5m from 
A$l4J3m on an equity-consoli- 
dated basis, and edged up to 
A$4S3m from A$443m on a 
statutory consolidated basts. 

TNT said the advance was 
largely due to the tumround at 
Ansett, and reduced losses in 
its GD Express Worldwide 


business, its express delivery 
joint venture. 

The company said that full- 
year results .at GD Express 
were stffl below expectations, 
having been hindered by 
aggressive competition, 
although the fourth quarter 
was inline with estimates. 

ft said that the better eco- 
nomic outlook In main mar- 
bats, coupled wUh cost reduc- 
tion measures, should "bring 
substantial financial improve- 
ment in the current year". 

The core Anstrahan-busiDess 
saw operating earnings 
improve "significantly", while 
Canada also showed “an excep- 
tional tumround”. 


The UK business earned 
record profits, and Germany 
improved. 

By contrast, TNT Spain saw 
losses mount, and no signifi- 
cant improvement is expected 
before the second quarter of 
the current year. Italy also 
remained difn«iih 

Interest charges last year foil 
to Af71.1m from A$93i6m, 
while the net debt to equity 
ratio tefl to 092 from 2.18 at 
end-June. 

Profit- after tax and abnor- 
mal on the statutory consoli- 
dated basis was A$4&5m, com- 
pared with a loss of A81 33.7m 
last tune. 

There is no dividend. 


Abnormal 
charges put 
MIM in red 


By NBdd Tail 

HIM Holdings, the 
Queensland-based metals and 
mining group, yesterday 
announced a A$l95.1m 
(US$145m) loss after tax in the 
year to end-June, largely 
resulting from heavy abnormal 
charges, hi the previous year, 
it had made a A$74m profit 

Revenues were A$23Ibn, up 
from A?2.Q2bn previously. 

The abnormal charges 
amounted to A$L70m before tax 
last year, compared with 
A$80 .8m in 1992-93. 

In large part, they were due 
to the restnicturing of MDUTs 
interests in Germany and 
included a A$85m writeoff of 
goodwill at the Duisburg zinc 
smelter, in which Mill has 
acquired a 100 per emit inter- 
rat, and a A$50m provision for 
the reduced value of Its invest- 
ment in Berzelius Umwelt Ser- 
vice, the recycling business. 

However, even at the pre-tax 
level, xml before exchange dif- 
ferences. MM made a much 
reduced profit of A$4&3m, com- 
pared with AS 1268m In the 
previous year, with an A?165m 
loss coming in the fourth quar- 
ter, against a loss of A$l&2m. 

The company said it had not 
been a good year and It had 
been hit by lower metal prices. 
Hie average copper price, in 
Australian dollar terms, was 
down by 14 per cent from the 
previous year, while lead was 7 
per cent lower, and zinc down 
by 9 per cent 

Higher volumes partly offset 
this effect hut the rising Aus- 
tralian dollar diminished their 
impact 

MIM is paying a final divi- 
dend of 2-5 cents a share, after 
a similar interim. 


TVB reports 70% profit rise 


By SJrooci Holberton 
hi Hong Kong 

Television Broadcasts, Hong 
Kong’s premier television com- 
pany, yesterday surprised the 
stock market when ft reported 
a. 70 per cent increase in first- 
half net gamin g a to HK$278m 
(US$36m) from HK$163JSm. 

The higher- than- e xpe cted 
profits at TVB were struck on 
turnover up nearl y 36 p er cent 
to RKSLlBbn from HK$871m in 
the previous half; Earnings per 
share of 66 cents were nearly 
70 per cent up on last year. 

The company said it had 
experienced strong growth in 

riomanri for adve rtising rrirfciwm 
and cited advertising directed 


at property investment in 
nhina as one of the main 
forces behind this. 

TVB is seen as one of the 
strangest media companies in 
Asia. Recently Pearson, the UK 
group which publishes the 
financial Times, entered nego- 
tiations to acquire 10 per emit 
of TVB. These have since stal- 
led. 

Mr Lao Siu-chuen, media 
analyst at Morgan Stanley, 
said there woe a number of 
special factors which helped 
boost p ro fi ts In the first baft 
compared with a year earlier. 

The most important of these 
was a change in the Hong 
Kong gove rn ment’s advertising 
royalties. A year ago the gov- 


ernment took 12 per cent of 
TVB's advertising revenues 
but now takes 10 per cent. 
TVB, as with all other Hong 
Kong companies, has also ben- 
efited from a 1 percentage 
point cut in the corporate rate. 

Mr Lan said he was holding 
to his full-year profits forecast 
of HK$626.5m. Lehman 
Brothers revised its expecta- 
tions to HK$732m from 
HK*630m. 

Sir Run Run Shaw, executive 
chair man, sa id he expected sat- 
isfactory growth in profits for 
the r emainder of the year. 

Directors declared an interim 
dividend of 20 cents a share; up 
33 per emit an the correspond- 
ing period last year. 


Fletcher Challenge 
posts improvement 


Fletcher Challenge, the New 
Zealand-based forestry, energy 
and construction company, 
yesterday reported consoli- 
dated net warning* of NZS675m 

<US$406m), fnrfciding after-tax 
abnormal gains of NZ$367m, 
for the year to end-June, agen- 
cies report 

In the previous year, the 
group's net earnings were 
NZ$382m, including after-tax 
abnormal gains of NZ$79m. 

Consolidated net earnings 
excluding abnormal items ware 
NZ$308m compared with 
NZ$303m a year earlier. The 
result included taxation (exclu- 
ding tax on the abnormal 
items) -of NZ$35m, compared 
with a tax credit of NZ|120m in 
the previous year. 

Fletcher Challenge also 
reported, for the first time, on 
full-year earnings of the Ordi- 
nary Division and the Forests 
Division, which were created 


last December. The two divi- 
sions are represented by sepa- 
rately listed shares, and divi- 
dend payments relate directly 
to tire economic performance 
of the businesses w ithin each. 

Net Ordinary Division earn- 
ings for the year, including 
combination adjustments of 
NZfSSm, were NZ$649m. In- 
cluded in this amount were net 
abnormal ttema after taxation 
of NZ3367m, relating mainly to 
the gains on the sales of 
Wrightson and Methanex. 

Directors have recommended 
a final Ordinary Division divi- 
dend of &25 cents a share, 
mailing a total of Us cents a 
share for the fell year. 

Forests Division net earnings 
were NZ$62m, with no abnor- 
mal items. Directors have rec- 
ommended a final Forests Divi- 
sion dividend of 3 cents a 
share, making a total of 8 cents 
a share for the full year. 


Budapest SE 
in talks on 
derivatives 

The Math, the French fatures 
exchange, and the Budapest 
stock exchange (BSE) have 
signed a co-operation agree- 
ment to develop a derivatives 
market on the Hungarian 
exchange; writes Tracy 
Corrigan. 

The FFr800,000 deal will be 
used to finance a feasibility 
study, and could lead to a 

FFr4m project . 

The BSE lists Hungarian 
stocks and bonds and calcu- 
lates a stock index, which 
could be used as the basis for a 
future. 

The agreement was signed 
by Mr Gerard Pfeuwadel, pres- 
ident of tiie MatiE, Mr Lajos 
Bokros, BSE's president, and 
Mr Loc Daboodet, chief execu- 
tive officer of Maestro, a whol- 
ly-owned subsidiary of Matff 
which offers a range of 
exchange services. 


INTERNATIONAL COMPANY NEWS DIGEST 


Market surge 
helps Iscor 
jump by 81 % 

A surging local market and 
higher export prices have 
allowed Iscor, South Africa’s 
largest iron and steel company, 
to report a dramatic improve- 
ment in earnings after four 
years af decline, writes Mark 
Suzman in Johannesburg. 

Attributable earnings for the 
12 months to June rose by 81 
per emit to R512m ($U3m), up 
from R283m a year ago. 

Turnover for the year rose 9 
per emit to R9-82bn. iscor also 
reported a positive cash flow 
for the first time since It listed 
four years ago. 

Net debt dropped R4Qlm to 
R1.72bn from R2.1bn while the 
debt/equity ratio improved to 
249 per emit from 333 per emit 

Mr Hans Smith, managing 
director, said a 6.4 per cent 


increase in local sales volumes 
had fuelled the rise. He also 
noted that the tiecl fo* in the 
rand/dollar exchange rate had 
combined with an improved 
steel price to increase export 
earnings. 

Mr Smith said overall costs 
had been reduced and capital 
expenditure had fallen 20 per 
cant to R498m, from R622m. 

Asian deal for 
Goodman Fielder 

Goodman Fielder, the Austra- 
lian food group where dissi- 
dent shareholders are trying to 
push through board changes, 
yesterday announced a joint 
venture deal with Indonesia’s 
Sinar Mas and Risjadson 
groups, targeted at the coun- 
try’s snacks market, writes 
Nikki Tait. 

Goodman said it would 
invest A$2Gm (USgLSm) in the 
venture over a five-year period 
via its Bluebird Foods subsid- 


iary in New Zealand, and take 
a 50 per cent stake in Smar- 
tindn Kencana, a wmjvi manu- 
facturer. 

Initially, Bluebird will “part- 
manufacture’' onftrfeff products 
for export to the joint venture. 
The aim is eventually to 
develop local production. 

Bakrie profits 
rise to Rp42bn 

Bakrie & Brothers, an Indone- 
sian holding company- with 
interests in steel pipe produc- 
tion, telwaminmii 1-nHnno and 

plantations, said Us unaudited 
first-half net income rose to 
Rp41.99bn ($l-93m) from 

Rpa.76bn a year earlier, writes 
Manuda. Saragosa in Jakarta. 

The company’s profits were 
boosted by a one-time gain of 
about Rp3Sbn from the sale of 
30 per cent of its Bakrie Elec- 
tronics unit to FIT Telecom of 
the Netherlands. 

Sales climbed to Rp273bn 


from Rp99.6 billion in the 
year’s earlier period. 

Taiwan computer 
firm impresses 

First Tntprnattnniil Computer, 
Taiwan's biggest manufacturer 
of computer motherboards, 
posted net first-half profits of 
TJ2526m (DS$9j6m}. up 79 per 
cent from a year earlier, writes 
Laura Tyson in Taipei. 

Revenues rose to T$6-59bni 
from T&5Um dining the first 
half of 1993. . 

Other Taiwan companies 
reporting Included: 

Tuntex Distinct, a construc- 
tion company and maker of 
man-made fibres, posted net 
profits of T$876Jm for the year 
to June 30, up 99 per cant from 
a year earlier. 

Revenues rose to T$5.24bn 
from T$433bn during the same 
period in 1993. 

Teco Electric and Machin- 
ery, maker of electrical 


mortgages 

By Graham Bcrwrtoy 

Bristol & West Building 
Society, the UK’s 10th largest, 
is set to launch a commercial 
mortgage securitisation, the 
first by a UK society. 

It intends to issue about 
£150m of listed bonds, equiva- 
lent to approximately 17 per 
cent of its commercial mort- 
gage book, to help fund its 
commercial property lending 
business. 

Bristol & West and Goldman 
Sachs, the US investment bank 
involved in setting up the deal, 
were unable to comment yes- 
terday on the details and terms 
of the issue, which are expec- 
ted to be announced next 
month. - 

However, Goldman Sachs 
said the issue was likely to be 
of floating-rate notes, involving 
senior and . sub-ordlnated 
tranches. 

The move was welcomed by 
industry analysts. “This partic- 
ular transaction is an mrariiwi* 
prelude to the development of 
the securitisation market in 
the UK for buOdmg societies,” 
said Mr Rick Abbott, director 
responsible for securitisation., 
at Morgan GrenftIL 

Securitisation is rvmimnn fn 
the US but is still at an early 
stage of development in the 
UK. It allows financial institu- 
tions to take loans off their bal- 
ance sheets, removing the risk 
of default and freeing capital. 

Bristol & West will place the 
commercial mortgages in a 
special-purpose vehicle which 
will sell the debt securities to 
investors. Interest on the 
“mortgage-backed” securities 
will be funded by the loan 
repayments. 

Earlier this year, the Budd- 
ing Societies Commission 
issued draft guidance on secur- 
itisation, and in May, the 
Leeds Permanent- Building 
Society raised £10Qm through a 
type of securitisation, based on 
residential mortgages. How- 
ever, instead of selling securi- 
ties in the public market, the 
Leeds used a pool of mortgages 
as collateral- for a loan from a 
group of banks. . 

Other lenders, such as The 
Mortgage Corporation, have 
made extensive use of securi- 
tisation to fend thair rrakjeqr. 
tial mortgage books, although 
activity has died dowif’ln 
recent years due to the weak- 
ness of the housing markBt 

Bristol & West said yester- 
day it had no plans to securit- 
ise residential mortgages. 


machinery and appliances, 
posted first-half net profits of 
TfLMkm, up 36 per cost from a 
year earlier. 

Revenues climbed to 
T$9.76bn from T|7fibn during 
the same period fn 1993: ■’ 

Taiwan Semiconductor Man- 
ufacturing, the country's lax? 
est semiconductor maker, 
posted T$3.7bn in .net profits 
for the year to June 30, up 160 
per cent from a year earlier. 

- Revenues climbed to Tf&8bn 
from TJ5.0bn during the first 
half of 1993. 

The company, in which 
Dutch electronics group Phil- 
ips holds a 88 per cent stake, is 
to list on the Taiwan stock 
exchange on September 5. . 

Pacific Electric Wire and 
Cable, one of Taiwan's biggest 
copper rod and telecommunica- 
tion cable makers, posted net 
pro fi ts for the year to June 30 
of T$456m, compared with 
T{l02m a year earlier. Turn- 
over climbed to T$L94bn from 
T$6.42bn In 1993. 


inde: 


Tbs Mote Leaden is g nat butdag - BiaarM aad Sport*. Fere 
Umtaaae-deaaceaaanvficnlaabraicdlOTI 2S3 3M7. 

Aeeoum m BooseOy opeaad wiabi TL bow*. 

Sim one Bp-ee-dm price! lejn. MVp ■. oaTMagct pegs dOS 


REUTERS lOOO |/Vy| 

24 haunt n day -only $ 100 a monthl ■'•VM 


rTOVOWFC 


■ UKonataaoH 


The Property Ftnnncc Sourcebook. 1994 
Avoid expensive feta - go aaal|Ju la the source. Whh (bis book you are 
the expert. The uliimau P roperty Finance Directory, indispensable tar 
anyone Imereswd in UK. property. Coll 071 493 1720 . 


DO YOU WANT TO KNOW A SECRET? 

Tta LD.S. Gam Seminar wi show you hear ta mortals REALLY (writ, foe arming 
mfngtachnlquK d tfwteesndoyWJO. Gam con teaeasa your proto aid caraaln your 
toMOO. How? TMb secrat RkigOBI 474 0080 10 book yaurfTISplaoa. 


NEW n77mt8$ODKCB PROFESSIONAL 

NOW AVAJXABJLX— 

W RMf RtsW&O* Own*. • Spa IX oPWim * OpdMS * Chw lOOTMntad SndiesJ 
TVaadHre* Kbaned A Cub Tseti v Cnato Yaw O"* « Prawn ObkOds ATechricdl 

A ae lydi^ ae u atilttWct Mwi d, Aw ctay o^aflebkrti «*■ ■ ! » Oi watf i aailbiTIKJbteBpa. 

Cdl leotie Ct e H ia « ffc—d W a » T«h*n-«WWM fma S71M 3*C 


Technical Analysis Software 




TELECOM 

JiTALIASPA 


fagi n ae a d Office in Turin 
Shoea Capitol Ut. 7 . 165 . 448 , 533,000 fuBy paid up 
itegnlafad atiha Court of Turin No. 131/17 Rapvtar of CpmswriM. 
Fowl Coda 00380600013 


NOTICE 

SHARE CAPITAL OF TELECOM ITALIA S.pJL 

Notice .is given that, following the realisation of the merger through 
incorporation of the companies IRITEL S.p.A.. ITALCABLE SERVIZf 
CABIOGRAFICI RADIOTELEGRAFia E RADiOELETTRIQ - SOOETA' PER AZIONI, 
SOOETA' IXAUANA RADIO MARfTTTMA per Axiom, abbreviated to and 

TELESPAZK3 - Societa per Azioni per le Cornu nicazi on i Spaziati in SIP - SOOETA' 
fTAUANA PER L'ESERCIZIO DELLE TE LECOMUNICA2IONI p.o., with the 

incorporating company taking on the alternative abbreviated denomination 
TELECOM ITALIA S^j.A., the declaration of the "new share capital entity, 
including also the issuing of ordinary shares in correspondence with the exercise 
of “SIP 1991-1994" warrants, from now on known as “TELECOM ITALIA 
1991-1994" warrants, has today been deposited at the Commercial Chancery 
of the Court of Turin, according to Article 2444 of the Gvil Code. 

C0 ' 5i,0, Uf6cr >' therefore'" equal to 

Lit. 7,165,448,535,000 divided in 

- 5,600/494,272 ordinary shares 

- 1,564,954,263 savings, shores 
oil with face value Lit. 1,000 each. 






}V- 

' 


. '1 • . 

;/ <.» . 

;V' 

r ,, 7 
- 

V -'"V 


•’ ■* -li ' 

r - t- 


ortunili^ i 

rat borrow 





. • ■ • 

jr?!" ).■ “ ' 

:W i . • • 

52 v • . 

3E 

nunc ootfSJUMBkf 


i 

: Xt 

S' 

/t 

• :.i- 

n 

* IV 

1 ra 

r v 

V 

"• W 

»>XT 



* 

1 ei 

i\- 


« * 

te 

; x 

* 

» 0 : 


4.0' 



* 

jV 


■ * 


- 'J' 

t 


ryi . . m _ % 

a 

•, s, " r ’ 
k • ; '» '.-B 


. 





1 Vw 














—"Sr 


: - '-"Tms g g gssg *- • .• 


l K!, % 

^iritis. - 


FINANCIAL times 


THURSDAY SEPTEMBER 1 1994 




INTERNATIONAL CAPITAL MARKETS 


European sector waits for the Bundesbank 


By Antonta Sharp® in London 
and Frank McGurty 
in Now York 

European government bond 
markets were uneventful as 
dealers marked time before the 
Bundesbank's council mooting 
today. Most markets moved in 
a narrow trading range and 
volume remained 

Analysts view today's Bund- 
esbank meeting as the last 
chance to it to announce any 
changes to official interest 
rates before the Goman fed- 
eral ejections in October. How- 
ever, apart from a possible 
return to a variable-rate repo, 
the market does not expect the 
Bundesbank to maW > any pol- 
icy nhangpc 

On Liffe, the September 
bund future moved between a 
high Of 9L99 and a low pf 91.66 
before trading at 91.79 in the 
late afternoon, down 0.19 
points on the day. 

The prospect o£ a large sup- 


ply of government bond issu- 
ance also prevented bond 
prices from recouping the 
losses they had made the previ- 
ous day in the wake of the 
unexpected base rate rise by 

leading ffr prtr>\ fwtilry 

France is expected to seek 
around FFr20bn through an 
auction of 10 -year paper today 
and Italy is hoping to raise 
around Ll4,00Gbn this week. 
Spain is also issuing paper 
with three, five and 10-year 
maturities. 

Dealers said the disappoint- 
ing reception given to the 
Dutch g o v e rn ment band auc- 
tion this week showed that 
investors remained reluctant 
to buy bonds. Sales of the 
Dutch 7.25 per cent bond 
reached Fl6.4bn after three 
days of subscription, during 
which the government M to 
reduce the price of the bonds 
twice. 

On thft Math; the 
French government bond 


Opportunities in lire 
tempt borrowers 


By Graham BcNriey 

The Eurobond market saw a 
number of gwaTi^ mainly retail- 
driven offerings yesterday in a 
variety of currencies, continu- 
ing the trend of recent days. 

INTERNATIONAL 

BONDS 

The Italian lira market saw 
several offerings. Borrowers 
are being tempted into lire by 
profitable arbitrage opportuni- 
ties caused by high investor 
demand, syndicate managers 
said, and investors by histori- 
cally high coupon levels and 
the flatness of the yield curve 
in the three to 10-year area. 

However some syndicate 
managers questioned the tim- 


ing of these deals in the hra 
market, which they said is 
nearing saturation point 

N£stle Finance France 
launched a LlSObn o f fering of 
two-year bonds with a coupon 
of 11 per pent, which man- 
ager Swiss Bank Corporation 
said performed well, despite 
aggressive pricing. 

In the dhiiar sector, Okobauk 
launched a $150m offering of 
perpetual bonds callable after 
five years and yielding 150 
basis points over six-month 
Libor far the first five years, 
and 900 paints over thereafter. 

Syndicate managers the 
deal was well priced and per- 
formed well Lead manager 
Rdihmm Sjarire said the iSSQB 
was mahtiy boaght by institu- 
tional investors although there 
was also good retail demand. 


future was virtually 
unchanged in the late after- 
noon, up just 0.02 at 11&30. 

■ The UK government bond 
market opened with an easier 
bias following the early morn- 
ing leak of the results of the 

GOVERNMENT 

BONDS 

survey ctf UK purchasing man- 
agers. published by the Char- 
tered Institute of Purchasing 
and Supply. The survey 
showed that the price index 
rose to a «*asmtany adjusted 
73.7 per cent last month, up 
from 73.2 per cent in July. 

Although the shorter end of 
the yield curve remained ner- 
vous ahead of next week's pub- 
lication. of minutes of the 
monthly meeting between the 
chancellor «tiH the Bank' of 
England governor, longer- 
dated gilts showed marginal 


gains. On Liffe, the December 
long gilt future, which saw 
higher volume levels than the 
September contract as traders 
rolled their positions forward, 
rose A to 101ft. 

Mr John Sheppard, chief 
economist at Yamiachi. said 
that although the Tmdwtnnp to 
the market remained bullish, 
higher volume was needed to 
drive prices higher. 

■ US bond prices slipped yes- 
terday morning an fresh evi- 
dence of inflationary pressures, 
as traders ignored conflicting 
data suggesting a decline in 
ecnnnmiff activity. 

By midday, the benchmark 
30-year gov e rnment bend was 
ft lower at 100&, with the yield 
rising 7.48 per cent The two- 
year note was off ft at 10 Oft, to 
yield 6.168 per cent. 

The market stumbled after 
several strong sessions when 
confronted by a mixed bag of 
economic indicators. 


The Pur chasing Manag ement 
Association of Chicago 
revealed that its August prices- 
paid index bad jumped to 79.3 
per cent, from 7L9 per cent the 
previous month. Even though 
tiie trade group also reported a 
slight dip in overall business 
activity, the market was con- 
cerned about the possibility of 
hi gher prices fw*Hhig iwfa> the 

pmuenmar sector. 

The Commerce Department 
supported the suggestion of a 
cooling economy with data 
showing a 12 per cent drop in 
July factory orders. But the 
market chose to ignore that 
news. too. 

As a result, bands across the 
yield curve sagged. But trading 
conditions remained very thin. 
which probably exaggerated 
the move lower. 

Many traders are other on 
holiday this week or are stay- 
ing on the s ideli n es until the 
release of monthly employ- 
ment data on Friday. 


NEW INTERNATIONAL BOND ISSUES 


Ooffwwr 

US DOLLARS 

OtobankM* 

Amount 

a. 

ISO 

Coupon 

(Bl) 

Prior 

IOOlOOR 

Mfisfty 

undated 

Faw 

% 

1DQR 

8prewd 

bp 

Book runner 

rV-i-i _ un » — ■ nl 

uncrnan oaens unviiujORai 

YEN 

DSL Bank* 

SwecBsh Export CmdBH 

Mkcn Cotp-TcJ* 

PRetom of Ontario 

3Sbn 

20fan 

lOtjn 

I0bn 

40B 

Ctrl} 

4 £B 
4J3 

10415 

00L00R 

10415 

10400 

Sep.1990 

Sep.1997 

DoCJZOOl 

Sap-1989 

ndR 

450R 

unded 

undtecL 

- 

Nomas Wemattonel 

Yamtect* tett(Europe) 
MRauttod Finance IrttL 

Kidder Peabody WL 

XM4ARKS 

SNCF 

300 

475 

90L79R 

Sep. 1969 

0-2SR 

+15(B1&K-S9) CSFB-ETfeetenbank 

ITALIAN URE 

Ftabobte* NadHiand 

ABB fVwnce 

NesM Hnenca Fiance 

22Stm 

istton 

ISObn 

ura 

11.40 

11.00 

loiras 

ioira 

101075 

Oct-1909 
Od-1907 
Oct 1996 

1075 

1X75 

1.125 

- 

Swtoa Bwric Corp. 

Bancs Cwn meric latoi KNtons 
9wtoe Bank Corp. 

SWISS FRANCS 

Nettonal Brak at Hungary 

ISO 

42S 

ioi ras 

Octissg 

200 


MenS Lynch CBpLMds. 

RnN terms and nan-cafebie tsdsee stated. The ytaid spread forer ulasant govemment DoncO at tauich to stopOed by the land 
manager. *Uh0Nad WTcaOng rate note, ft txad re-otter price feea wa shown at tta re-otter leveL a) Calable on coupon totes after 
5yre at pra ol) 8-flrih Ltxr +I50bp tor 1st Syre 4 +300bp lhareNter. b) Ototebie on 20/0/05 re par. bl) 3% to 2099/95 and 3HK 
flistor. c) Shod 1st coupon. 


SNCF, the French national 
railway, tapped the D-Mark 
market fhr the first tftna in 11 
years with a retail-driven 
DMSOQm offering of five-year 
bonds aimed at Swiss and 
Benelux investors. 

The National Bank of Hun- 


gary came to the Swiss franc 

market fhr the first time this 

year with an issue of SFrl50m 
five-year bonds, increased from 
SFrlOOm, offering a coupon of 
8V4 per cent The bonds were 
sold primarily to banks with 
strong retail distribution in 


continental Europe, lead man- 
ager Merrill Lynch said. 

Argentina is expected to 
crane to the Eurobond market 
in the ™»rt few days, in a deal 
lead-managed by Paribas Capi- 
tal Markets, with an offering of 
C$100m three-year bonds. 


Flexible options play 
blamed for Dow rally 


An 18-month-old derivative 
product caught the attention of 
Wall Street last week when a 
respected mosey manager’s 
options play, representing a 
mere $100m in underlying 
stock value, was blamed for 
ig niting a 70-point rally in the 
Dow Jones Industrial Average 
on Wednesday afternoon. 

Insiders scoff at the idea that 
such a small options play could 
move the market so substan- 
tially. 

However, the event and sub- 
sequent publicity have created 
an awareness that a new and 
fast-growing variety of 
exchange-traded options might 
introduce a new sort of volatil- 
ity into stocks. 

Mr W iiHam Mull en manag- 
ing director of Loomis, Sayles 
and Company, a firm that 
manages money for a variety 
of pension funds, was reported 
to he engaged in a portfolio 
enhancement strategy that has 
been popular over t he last time 
months because it works best 
in markets that are static or 
which are on a downwards 
trend. 

Known in the industry as 
“index overwriting", it 
involves writing, or selling, 
call options on popular stock 
indices like the Standard & 
Poor’s 100 or 500 for the income 
the options sale generates. 

Over the past year, deriva- 
tives traders say, such call 
writing could have added a fall 
1 per cent of return on a fund’s 
investments. 

The calls sold are generally 5 
per cent or more “out of the 
money", meaning that the 
underlying i nde x would have 
to rally by at least 5 per cent to 
give the calls any value to 
their buyers. 

The strategy w o rks best with 
“short-dated” .options that 
expire six to eight weeks after 
they are sold, since research 
has shown that the stock mar- 
ket rarely raffles by 5 per cent 


to 7 per cent in most 46- to 
60-day periods. 

The call writer feces a loss 
only if the market rallies and 
throws the options “into the 
money” by expiration. 

The strategy is best applied 
using flexible exchange 
options, or “flex” options, a 
product introduced to the 
world by the Chicago Board 
Options Exchange in early 
1993. 

Flex options are the 
exchange's answer to competi- 
tion from over-the-counter 
structured Instruments. They 
allow traders to tailor their 

DERIVATIVES 


own options terms, including 
expiration dates, and have a 
$10m minimum transaction 
size. 

Until flex options were Intro- 
duced, all US Mehangwd- t ra ded 
options expired either once a 
month, or quarterly. 

Index overwriters like Mr 
Mullen tend to stagger their 
flex options call writing to 
ensure a steady stream of pre- 
mium income, making just 
about any day an options expi- 
ration day. 

When conditions are right, 
options expirations present 
sophisticated derivatives trad- 
ers with attractive arbitrage 
opportunities. 

This was best observed in 
the late 1980s, when the “triple 
witching” quarterly expira- 
tions of stock index futures, 
stock options, and stock index 
options often caused the US 
stock market to pitch and roll 
in the final hour of that day’s 
trading. 

Regulators tamed those quar- 
terly events by staggering the 
expiry times of the three types 
of instruments, and the New 
York Stock Exchange began 
publishing fists of stocks for 
which there are derivatives- 


related order imbalances on 
any important expiration day. 

In last week's case, traders 
say a stock market rally had 
put the flex options calls that 
Mr Mullen wrote at the Ameri- 
can Stock Exchange close to 
the money, and that related 
stock and futures purchases by 
people on the opposite side of 
his trade helped stock prices 
shoot up, causing him to take a 
loss. 

Mr Rob Merrilees. a manag- 
ing partner with G-Bar corpo- 
ration, a Chicago-based trading 
firm that specialises in equity- 
linked derivatives, said that 
while flex options have become 
increasingly popular with insti- 
tutional investors, they are 
still such a small pari of the 
market that it would be 
unlikely for them to be to 
blame for underlying stock 
market volatility. 

“Their size by comparison 
just pales next to the options 
and futures that expire on a 
monthly and quarterly basis.” 
be says. 

Mr David Hall, vice-president 
for institutional marketing at 
the Chicago Board Options 
Exchange, says there were flex 
options contracts representing 
about $l3.5bn in underlying 
stock value open at his 
exchange at the beginning of 
the week. 

That is about double the 
amount represented by the flex 
products a year ago. and insti- 
tutional interest continues to 
grow. 

Other exchanges, such as the 
American and Philadelphia 
Stock Exchanges and the Chi- 
cago Board of Trade, have 
adapted the flex options con- 
cept to their own products, and 
the London International 
Financial Futures Exchange is 
seriously considering launch- 
ing flexible exchange options 
products. 

Laurie Morse 


WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONDS 

Rad Day's WMc 

Coupon Data Mcs change YWd ago 


Anna* 9.000 oa/04 97.8200 -ai*> 9.37 ass 

BsWum 7.250 0404 923800 -0470 S42 843 

Canada ■ ftSOO 06(04 86.1000 -0.750 8.81 8-73 

Danmark 7X00 12(04 88.1700 -0180 &79 830 

Fima STAN 8300 06/06 1023760 - 7-21 736 

CAT 5.600 04AM 843300 +0.120 734 734 


Italy 

m NOTIONAL ITALIAN QOVT. BOND (BTP) FUTURES 
CUFET Ura 200ro lOOths at 100H 


FT-ACTUARfES FIXED INTEREST INDICES 

Prico hdcae Wed Otar’s Tub Accrued 

UK OKs Aug 31 change M Aug 30 Interest 



Open 

Sett price 

Change 

HWi 

Low 

EsL vd 

Open inL 

1 

Up to 5 years (24) 

11499 

4009 

11488 

1X2 

401 

Sep 

0440 

KXX40 

Q09 

10041 

9415 

47546 

49272 

2 

5-15 yean pi) 

14029 

riX12 

14011 

2-10 

468 

Dsc 

srra 

B&57 

037 

9450 

9700 

10055 

33301 

3 

Over 15 yeare (0) 

15496 

4009 

155.83 

083 

481 

Mr 

- 

rat-gn 

ora 

- 

- 

0 

100 

4 

lnedeantefatoe (6) 

17493 

40.U 

17459 

208 

447 


■ ITALIAN QOVT. BOND WTPJ FUTURES OPTIONS (UFT^ UnCOOm KJOtha at 100% 


Ka/y 

4000 

(MAM 

843000 

-0300 Hint 

lira 

1050 

Strike 

Price 

Dec 

■ CALLS 

. . . MW 

Dec 

- PUIS — ■ — 

Japan No lift 

4000 

osreg 


-0170 

4.18 

3ra- 

477 



4.100 

12AJ3 

047780 

40080 

4.78 

4ra 

400 

0080 

203 

209 

206 

504 

Rltelf, te,1n1rlte 
MHiwnanQD 

4750 

01AM 

B48600 

-aieo 

727 

731 

BtW 

0900 

207 

200 

200 

505 

Spain 

4000 

05AM 

844300 

-4470 

11D2 

ura 

1019 

0950 

2.12 

202 

405 

S07 



uk rets 

4000 

00/99 

BO-22 

+1/32 

433 

443 

409 

-ttl 


4750 

11AM 

88-05 

- 

800 

484 

428 



4000 

ions 

103-27 

-am 

802 

485 

438 


US Treasury* 

7050 

OGAM 

100-10 

+1/32 

700 

708 

7.12 


7000 

11724 

100-08 

-2/32 

7,48 

702 

7.4S 


ECU (French OovO 

4000 

04AM 

840000 

-0300 

440 

443 

7.70 


Gat wri. ftreL date SIS Puto OSS. Petrim day* opwi fc*. CM* «7*7 Pu» OHO 


t Owe pnc u fcg e f t Hna tea 41U ptri 
Rfasc US, UK hi State, onset h decimal 

US INTEREST RATES 


ra ia»*« 
tft nnai 


Trami? BBto and Bond Ylabte 

«*a itanv — — 

481 Huts 

488 Hnaa. 

_ 407 13-yto 

£85 sxpar 


BOND FUTURES AND OPTIONS 
Franc* 

■ NOTIONAL FRENCH POND RTTURBS Q4AT1F) 

Open Sett price Change Htfi 
Sop 11334 11348 -040 11334 

Dec 11246 11238 -040 112.74 

Mar 111.90 11134 4140 11130 

■ LQNQ TERM FRENCH BOND OPTIONS (MATIF) 


■ NOTIONAL 9PAI08H ROND FUTURES (MHT) 

Open 8attprica Change Ugh Low EsL voL Open inL 
S4p 9739 8730 -0.74 88.10 87-57 46335 98.43S 

Dae 8731 8835 -03B 8731 8638 5416 16383 


■ NOTIONAL UK ttLT RflUREB pFF^- £50300 32nda oM00% 

Open Sett price Change Hgh Low EsL vet Open me. 

I Sep 101-24 108-00 -033 108-13 101-19 28133 E0064 

Deo 101-14 101-19 -0-01 101-01 101-04 48288 80937 

MAT - 100-31 -0-01 0 0 

N IONQ Ott-T FUTURES OPDONS (UFFE) £50300 64tha of 100% 


Low 

EsL VOL 

Open hL 

Sbftce 


• CALLS 

Dec 

. purg 

11416 

134149 

94711 

Price 

Dec 

Mar 

Mar 

11202 

12014 

48070 

101 

MB 

403 

1-8* 

306 

111.7* 

184 

4.060 

102 

1-58 

2-38 

2-20 

3-40 

103 

1-29 

2-12 

2-S5 

4-14 


Strike 

Price 

Oct 

- CALLS - 

Dec 

Mte 

Oct 

— PUTS — 
Dec 

Mar 

113 

1.12 

1.00 

. - 

104 

203 

- 

114 

0.65 

107 

- 

- 

202 

- 

115 

004 

ora 

103 

- 

- 

- 

1T« 

0.18 

003 

- 

- 

- 

- 

117 

008 

039 

075 

- 

■ 

- 


ty ML Cate M48 Pro 29£te . ftmtous day** open W, Ctae T7Z.7OT Am SOJOZ. 

Germany 

■ NOTIONAL GERMAN BUND WMjB (UFFg* DM2S0J0Q lOOlhs at 100% 

Open Settprtca Ctajp high Uw Eat vd C**n W- 
am ai Hfl 91.76 -023 9139 9136 85760 108439 


i 300 Mi 1+04 AMu Opre tat. Cali 8952 ha 13814 


Ecu 

■ ECU BOND FUTURES QdAUF) 

Open Sett price Change «Wi Low Eat voL Qpwi InL 
Sap 6140 8148 -030 8132 8130 1445 5392 


8034 8096 


8038 80.78 


1.150 1.437 



Oped 

Sett price 

Change 

Hgh 

Low 

Sep 

Dec 

9100 

91.76 

-023 

9109 

9106 

8094 

9094 

-022 

91.18 

ggra 

Mar 

9055 

9039 

-007 

0005 

9055 


■ US TREASURY BOW FUTURES g»I)S100300a2nda ol 100% 


« BUND RflUREa OPTIONS QJFFQ DM2S0J00 points of 100% • 

Btta ■ CALLS PUTS — - 

Prfca OctNwD«MarOrtNmrOaCMar 

9060 036 131 136 1.74 0l62 037 1.12 136 

9100 0.07 134 138 1.48 0.78 1.10 134 2.10 

9180 043 0.79 132 136 039 135 138 Z37 

U. »ot wtri. Cate lies Ma 3702. Ftorioua dajr'a spwi tot, ONto 13SB8Q Pro 139173 

« NOTIONAL MEDIUM TERM GERMAN ROOT. BOND 

tBOBUOJFPg- OM26C.OOO lOMta <* 100* 

$att price Change W &L wl Open InL 

S+P 8736 -0.17 ° ? 

Dec 


14817 

46188 


Open 

Latest 

Changa 

Kgh 

Lee* 

EsLvoL 

Open inL 

25 

520 

Sep 

108-15 

108-14 

■ora 

103-19 

103-10 

224022 

257,151 



Dec 

102-23 

102 ao 

-ora 

102-27 

102-17 

60030 

173.762 

PUIS — 


Mar 

102-00 

101-28 

-ora 

102-01 

101-27 

781 

8073 


Japan 

■ NOTIONAL LONO TERM MPfiNCOC QOVT. BOND FUTURES 

(LU=f=g nOOm 100th* of 100% 

Open Ooaa Change Hgh Low E*L vol Open IK- 
Sep 10734 - - 10730 10733 309 0 

Dee 10636 - - 10830 10639 1951 0 

■ UffE ewmecte traded on APT. A* Open Mara* to*. we tar piwiww ttogr- 


UK GILTS PRICES 


— IBM — 
nr- htfi law 


(MTONiw M 

Ton fee 

tto* 1905. H-2 

EsftapcGte 196045— ws 

w*pcwe ** 

&HM2*peni0tt — 1t8* 
Mpc 1896 tlM 

uuicinaj* ija 

BrtUlMciWWt— - 
QmwwaltoclW— 
HwaQ*r7pB ISOTtt — 7.11 

uwiisiiiKiww— «.aj 

BsB ttljee JBB7. M2 

TteteMaewm 

bdi ISpc 1997 1M5 

avgc 1098 . 89* 

Thaa7liptTtBBpt 

M0CM9B-I— 1* 

UltalSIjteVBP— 

Bcaizpcins Iff* 

HawNzPcUHOtf 


RwteHBawiTten __ 

Bdir^iPtoeL 

Aw IdjflCIW 

DMHB*a R8«pc <*9- 439 

•ss ri 

Ttaw UpcJOOO 10* 



Tpcjam » 

7KZ00IA J5 

5 !Stz=: S 

• -TW)- week. *J Ta»-eea » « 


534 IDOV 
£58 102*9 
E57 98A 

536 103S 
570 10SQ 
897 10Pi 
733 112& 
730 10SU 
730 IMS 
792 (WIN 
7.7* 1«B 
785 10SZ 
on ion 
8.10 IMS 

sa 

IS twS 

03012* &N 
0.45 112A 
030 ran 


ftsnisJW 
050 IWft 
033 tOB* 
857 


View U^KK 3901-4 

-A trail IflOSi Fenttoglbpc 1MS-U. 

107A irah C unmtt w 9*a» MM—. 

— W Si ItawNdcSBOIp 

— Cm 9 *3 pc 2005 

lift Tm 12>^C 2009^4 —m 

= ss a — - 

^rSSSSsrZ 

S S ^ itawoJwcam#— 

12ia 111H 1»J9C 2004-8 

3 , 1*2 105H Tiewspcaww — 


117* 

1213 

+A 117B 

<rh IWi 

*k too** 
+* 1213 
t* >14* 
+*■ 110* 


101H 

no* 

iiau 

so* 

9*H 

HOB 

123% 


ar* 

S’SS 

ta nj 
OBI 

O00T00AN 


+1, tin* 101« 

+*■ 1318 US* 

** ii*fi nou 
I* 108* 96* 

IS in! iwaouaewo. 

*a®aaBas!!= 

TNw 8*9*2000-124- 
llw Ope 20134 — — 
Tto 2012-184— 

HwaO^pc 20174 

113* EM* IS* 200-17 

+ >, in* nm 

unS FOR 
— i«H 
TOO* 99S 

118* WS rinrifal 

136B no* SSEL. 


a* 121A 
4* imn 

1«B 

TOO* 

•* 

a* 1360 
a* ia* 

al, 127* 


aoouzvN 
7J8 72B 
083 1058 
BM 00* 
l£3 196V, 
895 1213 
*54 ONi N 
801 8 5B 
890 110* 
U2 OOK 
ojBuma 

BLS2 107% 


&51 95W 
830 na 

841 M4H 
044 105* 
822 74*N 
840 90&N 
038 SA 
837 1030 
880 1U>1 


— 1flM_ 
er- W» law 

al. iaai 110% 
+% 88* 71* 

ala T2S* 103 
105% 850 

us* ira% 

148* 110* 

1121J sib 
+A 111% 93* 
•% ISO* »3% 

4* 119* oea 

+* 151 a 125% 
t* 13*3 101 


_lWd_ — 10M — 

MBtoi (!) CQFifcaS *at- Mgb Low 


Oaate4pe 

471 

- 46B 

tor Lore 3%pc& 

140 

* *1» 

OnShflCBINL 

115 

- son 

TnaeSflCttML 

CUaobZfaC 

Timftsc 

U* 

04* 

150 

- KB 

- 20% 
- 29%a) 


4* 115* 
+A 00* 
+* 120 a 

«* 127% 
■** "83% 
— 1170 
*Jk «4% 
«* 120% 
+* 158% 


a* 0% 
«* 540 
-% 71 

-* «% 
a* 38% 
** 37% 


ZpeW £54 ISIIflOAN -* 203% 1970 

4%wve4 (1388) £71 150 107* -A 111* 108* 

2%pcm p!3) 129 170165QC -% 176% 153% 

JbpcVJ |7&a 340 173 161% -% 173% 159* 

CweTW* (13581 140 172 189 J, 110% 1BT% 

2BCW <694 147 132 «% -* WJI 165* 

2%pc‘W« (784 15 173 10* -* 180* M0% 

2%pc11 (744) 155 173 150% -% 170% 154% 

2 %pcns 094 157 U5 13014 -% 146% 128% 

2%pe*w mh 180 177 nw, -* 157* 134% 

2«we*20 104 U« 138 133% -% «2fl 128% 

2%pe*»tt p77) 102 335 ill* -% 120* 106% 

4%peW*t (135.1) 80S 879 110% -* 12SU 105% 

P w epe rthe teNtedampOomNaonpro(a ae aMtoagnol(11HW 
■nd SK- W riflwee In rwenlhem Acer RPi t» ter 
Indnine M 8 mcnlfta prier to iteue) wxl taw been aOusted ro 
raaect rahetew e( RPI W 100 hi Jm>y 1087. OwHeniDn fadw 
1S45 l fiFI Daenew lOex 141 j ttC far JNy 109% 144 J. 

Other Fixed Interest 


_ttttd_ 199* _ 

lWw W BN Fitat-aar- H» lew 

Mlcai Di> 11% 2010 — 035 882 179* a* M2& 11® 

MnDwiMmaXR— 810 882 1110 a* 135% 

BlmiltocSOtt 0X0 03* 118% +1% 142 US 

krimap0>2p;‘i8 — 870 97 110% 95% 

tocOCIW 888 - 100% -% 103% 100 

13KV7-2 mO - ttS% *% 115% 108% 

H)ttDlMtc15gc2011- 1049 033 U33 — 1300 

la^V3%9C20Q8_— 169 - 127% *1% 1*0% 1B% 

I*wjm3ijpem4 946 - 37 — 44% 33% 

UC*cQD48, ta - 32% -% 40% 20% 

IhntfattTr Tl %pc 26C7. mfl* 851 114% -1% 136% 112 

IteLHfcSKT 438 110 68% a% » 0B>< 

)MteMttto3%pc2(ei. - «A1 133% 4% 150% 129% 

4%pcia» - 4X7 120% *1% 145% 123% 

UUIMtalOfeEZDOB 120* - 737 +2% 153% 134% 


5 Al docto m 


6 Up is 5 years (25 185J0 

7 Owr5yeera(1l) 174J7 

8 Al stacks f!3) 17-107 

De h e nha aa and Lo— 

9 Defae* Leant (75) 12&33 

teap ONM ledwapaon ytoldi wa dKMi i 


4U10 1S7.10 


-003 185.68 066 

-4X18 17445 085 

-015 174S2 082 


-4X12 12006 £33 

M Coupon Bands Low; DH-7VK; 


— Low ernrean yield— 
Aug 31 Aug 30 Yr. ago 

— Medium coupon jrteW — 
Aug 31 Aug 30 Yr. ago 

— Hgh coupon yMd — 
Aire 31 Aug 30 Yr. ago 

439 

442 

433 

448 

451 


483 

485 

465 

441 

442 

701 

454 

805 


479 

480 

7.40 

808 

439 

7.15 

464 

455 


465 

465 

7.42 

447 

449 

705 







Motion 5% 

_ 

-bdlalton 10% 



AuB 31 Aug 30 Vr, ago Aug 31 Aug 30 Yr. ago 

335 UptoBja 071 066 052 XK 1.73 

3.48 Over 5 yra 078 3.74 025 U7 055 XOfi 

048 

5 jraar yield—— 75 year yWd 2Symryfald 

Aug 31 Aug 30 Yr. ago Aug 37 Aug 30 Vr. ago Aug 37 Aug 3D Yr. ago 

7AO 058 056 7.72 051 050 008 045 043 020 

Mwluie 8W-10MN 11% nd over, t Ft* ytaU. »« Vow to data 


FT FIXED B f T E RE S T INDICES GILT EDGED ACTIVITY INDICES 

Aug 31 Aug 80 Aug 26 Aug 28 Aip 24 Yr ago Ugh* LoW Aug 30 Aug 26 Aug 25 Aug 24 Aug 23 

Oort. Sees. (UK) S1S8 91.74 9243 91.80 0127 10056 10704 9099 On Bdgad htegah te 82.1 707 785 74.4 78.0 

FtaO Interest 10959 10054 10958 10018 10855 12550 13357 10753 swage 775 775 802 824 885 

• tar 1004. Qm wntrot aecwttoe «tee» nww pte Unn- ttrAO WMWX tan 48.18 {W1R. Rued tateata Ngh tew corapteMon: 13357 R1/U9% . taw 3081 (80/75) . Betel 100: Gwammenl 3newttte 15007 

a and Ftaod km lOZl 8E aeOM V Mm nacaaod 1074. 


FT/ISMA INTERNATIONAL BOND SERVICE 


UtedntabMI 


font btmte foruMdi Owe la an attequ 
tewwl Bd Otter Chg. YMd 


i seconckiy martwt Lateat pricea at TOO pm on 31 

tosued BU Ottor Cfeg. 


1X0. DOLLAR SnWOHTS 
AtttrNNTieaMyO>2ra. 
NtertaPntaM7%K 

*09% 8% 00 

BwWcf Tofcy*>8% SB 

BdgMa5%ra 

HFCE7%W 

8rlttWi Qaw 0 21 

CwsdaBBB 

Chong Kog Fh 5>2 90 

Q*a6%0* 

CDwdBiDpaOOS — 

Qw«ftnete9%0B 

Darntak5%08 

BMtJttteiRNawB%0*_ 

BCSC8%80 



« 7% 96 

BBS 1 * 97 

BncdeFanonBSB — 

Btt*na9%9B 

Ea-taiBankJw»i8E __ 

&pst Dw Corp 9% BO 

FKtaNNte MM 74004 _ 

fttendfl%S7 

FMKi&pM9%0S 

Fad tt&r CracC 6% 96 

Gen Bac CtpW 8% 98 

GhPC9%BB 

tod Be -hpwi Hn 7% 07 

Iter*nw0w7%86 



5pen0HBkfl%0i 

KnaIB«F%r10B6 

NaaeBKi%NwO%ra — 
LTCsniOBT 

HI 

Ctta»7%m 

Qear Koraetta* 8% 01 

P«frC«h7%S 

RatgriS%ra 

OiatMC H)rto 9% SB 

OuttacPiwegB 

SteaUijB%95. 

StflOM 

SNCF 0% 96 

Spa> 0z 93 

tow 9c NSW ^2 08 

swam 5*2 85 

9WtJ*£*ut8%Sfl 

TUgoBecPawrOHra 

Ta%B l ia q pD h B%9S 

Tap* Motor ft 06- 

UahdKhgdDn7%QZ 

WaUBtekftBB 

WsUfcrfcftW 


-MOO 01% 

- WOO 701% 

- 400 105% 

- 100 102% 
. WOO 66% 

- 750 106% 

- 1500 1ft 

- 1000 103% 

- 500 80% 
- 1000 8ft 
_ WO 102% 
-300 100% 
-laoo 0ft 
-600 02 

- 103 103% 
_ HD 102% 

- 250 ttfi% 

- 1000 10ft 
_ 200 10ft 

- HD 104 
-ODD H8% 

- 160 W7% 

- 7930 «% 

- 3000 Bft 

- ZD 103% 

. 1500 97% 

- 300 1W% 

- 200 103% 

-200 101% 
-200 HE 
.3600 82 

-500 10*% 

- 360 105 

• 1300 87% 

-300 101% 
-TWO 97% 
. 1000 101% 
. 3000 07% 
_ 200 10ft 
-200 W% 
. 1000 87% 

-150 W7% 
-200 104% 
_ 150 104% 

-200 10ft 

- 150 107% 
.1500 07% 
-2m 103% 

soo 90% 

-700 102% 
WOO 00 
-300 103% 
.1000 96% 
3000 08% 

BOO TOft 
.1900 105% 


DSnSCHE HMK SIHNOMS 

AAtaS>2» -3000 Bft 

OtaRn*7%<B 2300 Oft 

DamtefcO%98 2000 38% 

DephRnmftO 1500 Bft 

D«**BkftJ7%ra 2000 aft 

ppr.NfrOn _ . m 27% 

SB 6% 00 1£m 96% 

FUmdftOO 3000 101% 

t^7%AB 5000 101% 

UraretteJNMftQB 2250 0ft 

*n^6%SB 1600 90% 

Mate 6% M 1500 80% 

Sptto7%D3 4000 08% 

8 nden88r 0500 10ft 


LMd Kington 7% 07 5500 101% W1% 

Bft «% 751 Vcfcnvagm H Hn 7 03 1000 BB 9B% -% 

732 1% 7.12 WtolBwk015 2000 20% 2ft 

105% 735 WMSrtftra 3000 aft 3ft -% 

toft -% 670 WbridBtocftm 1290 109% 110 -% 

Bft +% 7.74 

10ft 077 OM9S FRANC SHWaWIS 

11% 851 Aten D*> Sir* 6 10 100 100% 101% 

HM ♦% 024 AiaMl4%00 100D 96% Bft -% 

91% 4% 829 CandEuQpe*%flB 280 Bft HD% 

8ft -% 847 Qanmto 4% 99 1000 95% Bft -% 

103 +% 850 BBB% 0* 3m 105% 108 1% 

109 7.16 Bsc dB Fanes 7% 06 HD 100% HD -% 

07% 1% 677 FHand 7% 00 am 100% 1W -% 

92% *% 78* Hjtndai Moto Fta ft 97 HD 108 HS% 

103% 1% 883 bten07%OO ICO 10% 10ft 

103% 049 Kobe 6% 01 2*0 W 105 

102% 641 Oteteftm 4TO 101 101% 

107% 678 Qabec Hh±tj 5 06 100 86% BB 

106% i% 70* SNCI7W 4S0 MB 1C8% -% 

101% 038 WtaUSsnkSOS 150 Bft H7 4% 

102% 4% 1ST nbtiBM*701 800 107% 100% 4% 

108% -% 7.18 
Bft res VBtsnwoKis 

raft am BsgunsBs 790m 101% Mft 

m a n reft 00 imom 109% 10ft 

97% 72* Frtandft 96 60000 M5% 105% 

105% &» NrAmwDw7%(D 30000 1M% 112% 

HB% 888 toy 3% 01 300000 Bft 91 

HE -% 735 JBpwi Os* Bk 5 99 100000 102% WZ% 

102% 15* ikpan Oer Bkft 01 T20000 left 1H> 

Bft BJ5 Nhpan Td Tto ft S0 50000 lift 105 -% 

10ft 746 ftenuay5%B7 150000 103% 10* -% 

105% as SNCF 5% 00 30000 10ft 110% 

ao 4% &51 3*1 5% 02 125000 105% 105% 4% 

10ft 7.14 SsedwiftflB 150000 101% 101% 

98 1% 778 Watt Brit S% 02 2500X1 102% 102% 4% 

101% a 54 

Bft 7 87 OIHBI STRMQHTS 

105% 742 QwiherKeLiaftSB LFr 1000 106% 109% 

101% 4% &S0 I® DeU WusSA ft 03 Lft _ 3000 HB VR 

87% 4% 780 WbddBftBBBlFr HID 100% 101% 

108% 780 AflNAnnftOOR HD0 97% 97% -% 

105% 742 Bet* Mel Geraaraan 7 03 R — 1500 08% 97% -% 

104% «8B AtmPKMkalftBOCS «« I 109% 10ft -% 

ioft 4% am ucwteteiftncs iso ios% ioo -% 

10ft 7.10 RBhOotsrttelomCO 500 Mft 100% -% 

07% 4% 7.19 ren%9BC5 190 TOO 10ft -% 

«S% 681 Bsc de ftBQoe 6% ® CO &5 HB% 10*% -% 

08% 411 Gen Bee OpU 10 96 (3 3m HD KJ3% -% 

103% 4% 440 mVMBilOOICS 400 109% 104% -% 

90% 1% 7.72 N(ppmTriTttW%»CI 200 106% 106 -% 

iaa% 4% am Ottofa&ract ism oft aft -% 

96% 688 CWtrtjftdolftSBCS 500 106% 109 ~% 

Bft 4% 747 tarKtfta*w*10%nCS — ISO MS% MB -% 

106% 7.10 Oetac Pro* M% S6CS Oo W*% 10ft -% 

105% am BtoanftBBBai 1Z50 10ft Mft J« 

OucIBhpb 901 Ecu 1103 TO% 102% -% 

Gw* located fl 96 Ecu 125 102 102% 

8ft -% 7J6 SB TO S' Ecu 1125 104% 105% 

aft -% 755 FentotalftBOBte 500 M5% VJS% 

Bft 855 Eafgr 10% 00 Ecu MOO 106% 10ft J% 

Bft -% 782 SpataBBBEeu MO HS% Mft 

99% -% 787 Unted Mngdom 9% 01 Ecc — 2750 TQft H» -% 

SB -% am «DGM»I4 «D 10ft 104% 4% 

07 -% 7JB BP America 12% 96 AS MO MS% 10ft 4% 

101% ■% 723 CerniEkAtaBNl 13% 99AS — HD lift 117% -% 

101% 477 S 7% 09 AS ^350 9ft 97% -% 

Bft -% 774 K»ltoiyZnO»4S- HDD 0% 10 4% 

Eft -% 450 RtIBa*7%03AS 125 60 8ft 4% 

Bft -% 70S 8tto8kN5WB02AS MO Oft 9ft 

08% -% 705 $BtAottOo*tFn0(EAS 19 Bft 00% 

104% 4% 49 UtowFuteto12 98AS 150 TQ3% 1QB% 



bSMd 

Bid 

Otter Chg. YMd 

Abbey NN Tteasuy 8 03 C 1000 

02% 

92% -% 

034 

MtonceUfcs11%W£ — 

100 

HB% 

W7% -% 

847 

BtediUnJft 23C 

150 

38 

80% -% 

1030 

Danmkft 98C 

BOO 

aft 

94% 

BwB3 

re 1097 c 

837 

10ft 

MH% -% 

113 

Wtaslft 97E 

100 

w% 

104% 

027 

Hanson 10%97E 

500 

W4% 

104% 

178 

HSSCFfcktogslljBBtBE . 

153 

110% 

110% 

9JB 

tefy 10% M2 

4m 

«ft 

108% ft 

958 

townDW Bk7 OOC 

200 

82% 

Bft 

187 

LnfSKI B% 07 E 

2m 

88% 

09% ft 

066 

Ontario 11% DIE 

ioo 

108% 

10ft ft 

029 

Ppswgw ft oa e 

280 

87 

97% ft 

338 

SnwnDent 11%B9E 

150 

109 

10ft 

9.11 

Tokyo Bac Poew 11 01 E ISO 

tca% 

HD% 

419 

Abbey Moral 0 BE N2S ioo 

83% 

aft 

384 

TCtCFriB%CPN2S 

75 

100% 

101% ft 

317 

OeALocriEOI FFr 

— TOO 

90 

aft ft 

760 

Sbc ds Free# 8% 22 FTT _ 

— 3000 

101% 

101% ft 

864 

SC? 9% 37 Hr 

no 

10«% 

10ft ft 

727 

FUMTWQ RATE MOTES 






towed 

0H 

Oflw 

Ccpn 

Attaey Nafl Tteasuy -i 99 _ 

1000 

9028 

9PTB 

45000 

Banco ftinw 039 

200 

MBS 

10002 

4.7B12 

a*UmiB7Dte 

500 

10413 

10024 

5.1250 

BFCE-QJHB6 

350 

0171 

9086 

4.7300 


ISO 




Create -% 80 

_ _ ^ 

83.17 

0324 

46250 

CCCE0 06 Ecu 

200 

9805 

0920 

68229 

Cmft Lycmto 4 00 

300 

9770 

9121 

63125 

DanariL-%06... 

1000 

995* 

8BJ36 

sue*; 

OeBdnvftBve^SS CN 1000 

9090 

10007 

snnaa 

FeDocusuanw 

4» 

9BJB 

10019 

43125 

FMredOW 

1000 

09 ST 

1000B 

53750 


900 

met 


4B8QD 

toy % 98 

2000 

100.10 

10018 

loom 

LKH EtodBO-Vtesrt Hn -% BB 

1000 

8841 

9951 

45H25 

LteyteBwkRapsaiO 

600 

6425 

6625 

54125 


650 

9923 

9957 


NBwTwWrrl -% 89 

1000 

995* 

GGL6Z 

*0125 

OtorioOBB 

— 2000 

6436 

9043 

43375 

Msoea 

500 

9935 

9955 

11250 

SodeteOenotoOSB 

900 

9852 

9956 

40312 

Stoefaterek Bato -OiB OS EM - 60D 

9933 

9938 

43500 

State Bk riteito QOS SB IS 

B9L65 

9986 

5.1125 


ism 

M) 

3937 

45250 

Sweden -% 01 

2000 

9601 

SOSO 

45250 

lifted ignfldrei-% 90 4000 

9476 

3983 

4im 

coiwuunr bows 






Cook 




toned Price 

BB OOor 

ta 


.400 E2% 96% 97% 

.250 86 102 103 

-S 10664 lift VI* 
.500 25825 Mft lift 


Rwrt^«i*ft05 , 
Chubb Ceptel fl 9B _ 
tatragBrieftm . 

Horan 0%OB£ 

HoranAnrac«£8801 

Haefaf FW802 

laDEteaftiat 

Labis 7% 050 

1*34 to* ft 03 

Moui be fti 6% 97 — . 
(UPdmiE%QB£ — 
Cgdtoi002 

PWVBDlftCQ 
Swttnistahft 04 . 
tonMnsft0O£- 
Tesco Capttal 9 05 £ _ 


■ No woesalan — toe - Pterioip tofn price 
t GMy one new mttwwppted apsoe 


1000 


75% 

70 


400 

19L1 

136% 

139% 


_« 

U2 

95% 

WO 

*42 

-90 

584 

Bft 

B* 


.2m 

TOOK 

90% 

9Z% 

+14.19 

100 

cam 

104 

IK 

*81 

.290 

433 

125 

120 

<409 

-S 

38877 

8 ft 

80% 

+5323 

500 598097 

91% 

93 

«UB 

mo 

30080 

Bft 

85% 

♦HUH 

156 

39 

100 % 

101 % 

+114? 

200 

£51 

116% 

117% 

+1003 

300 

8 ft 

102 

HD 

<248 


J i H te O i i r0aMDte'Ww>Mtftoeii|*teitaiHwiipBflBalfwNdpnBwti» wn Bi rt lteMdtoh ne i n BC<asienteistoas.dteaCtenB>teiily. 

FLCumMO HOT MPTBt Omtetote d fa HWs irtws uB — ta Mated. Coro»i *wwi to mfcto — l 0 f»wl Itorpw shew teHBWi tetead tote OB isa H naBi Stone ■ 

COWBOteU BQWte DmaMd ta dote** otowtew tadatod. Onr. gtoNbiM emu* at tnad p* ten wptBWsd h uwsy al tote w erontean m 0n 

emus tftettw prtw c* KptaH dew tos *m tend awr tee bow sew price c( tee to—. 


sen b| hr US ddtam CgtaDs cum 
i te tau. TiwitoPandtagB pnoton cl *w 


OH» FmW TVns LxL, 1004 Itepntotoan to me a to pert to wqr fcm not pwirtted etooul wrttei esnemL Otoe wppted bjr tntemtotawl Scutes Mstoi AssocWtaa 


, P Aucten oeto. *0 Bt dMdtnd. Oate s ntowteei tee tow to pnusto 








22 



FINANCIAL TIMES THURSDAY SEPTEMBER 1 1994 


COMPANY NEWS: UK AND IRELAND 


Housebuilders offer evidence of recovery 


By Andrew Taylor, 
Construction Correspondent 


Share prices of housebuilders rose 
sharply yesterday after companies 
reported that new house sales had 
recovered last month after a poor June 
and July. 

Persimmon, the UK’s eightb-btggest 
housebuilder, said it had sold 250 
homes in August, 25 per cent more 
than August last year. 


Ideal Homes, part of Trafalgar 
House, the construction, property, ship- 
ping and hotels group, also reported 
higher August sales than a year ago. 

Wimpey, the UK’s biggest house- 
builder, which announces first-half 
profits next Tuesday, is also thought to 
have seen sales bounce back in August 
after falling in the first two months of 
summer. 

Mr Jeremy Withers Green, analyst at 
Credit Lyonnais Laing, said: “This 


show that the bousing recovery is still 
on track, whfle new homes are taking 
market share and selling better flwr 
wfatiiig houses and flats.” 

Persimmon, which .yesterday 
announced a 34 per cent rise In interim 
pre-tax profits to SU-Jm, saw Its dure 
price rise lOp to 262p. Barrett Devetop- 
meort rose 12p to 210p; Berkeley Homes 
15p to 43(5> and Wilson Connolly 17p to 
234p. 

Mr Duncan Davidson, Persimmon's 


chairman, said: *T believe the recovery 
is sufficiently entrenched to withstand 
an increase in interest rates of up to 
one percentage point - although I 
would prefer rates not to Increase.” 

He said that Persimmon had 
tocreased net profit on each sate to 
£7f8t8 from £4,925 in the first six 
months of last year. This compared, 
with a peek profit par house of £18,000 
to 1988-89. The aim was to get tfab 
back to £10,000 a unit 


Rugby up 17% but sentiment 
clouded by trading warning 


By Ancfrew Taylor, 
Con s t r u c t i on Correspondent 


UK cement sales rose by 8 per 
cent in the first six months of 
this year, according to Rugby 
Group which yesterday 
announced a 17 per emit rise In 
first-half profits to £35 .6m, 
against £305m. 

The building materials 
group, which now generates 
higher worldwide sales and 
profits from joinery than 
cement, increased, its interim 
dividend from L425p to L5p. 

Its sha re price fell 5p to 139p, 
however, on warnings from Mr 
Peter Carr, managing director, 
that trading conditions in the 
UK joinery business were 


becoming increasingly compet- 
itive. 

UK cement profits rose by 
U.4 per cent to £9 .8m with 
turnover increased by 11 per 
cent to £64 ,5m. Cement sales 
were helped by increased 
housebuilding, a rise in infra- 
structure construction, and 
greater industrial building: 

UK joinery sales increased 
by 16 per cent to £75 Jm while 
operating profits rose by 19 per 
cent to £8. 6m. This reflected 
sharp rises in raw material 
timber prices, which have 
risen by some 13 per cent dur- 
ing the past 12 months. 

Mr Carr warned that profits 
could flnmp under pressure if 
UK manufacturers continued 


to battle to increase market 
share. 

UK metals profits increased 
by 55 per cent to £3.1m, on a 
sales increase of just 16 per 
cent to £67 dol UK profits over 
the three divisions rose by 19 
per cent to £21 5m. 

Overseas profits Increased by 
21 per cent to £145m. Austra- 
lian cement »nd linn* profits, 
which rose 25 per cent to 
£7.4m, would have been almost 
flat but for £1.2m raised from 

land 

US joinery profits fell by a 
third to cim due mainly to 
poor weather while European 
joinery profits increased to 
£19m (£2.Gm) helped by new 
acquisitions. 


The cloud hanging over 
Rugby's share-mice yesterday 
was the prospect of further 
skirmishing between UK join- 
ery man ufac turers just as their 
raw material costs have 
soared. The pace of recovery in 
UK cement demand is also 
likely to slacken next year. The 
acquisition of Bund’s US dis- 
tribution business is rightly 
well regarded, but prospects 
elsewhere look a little dull 
compared with others in the 
sector. Annual pre-tax profit s 
of £80m followed by £Sfim next 
time would put the group on a 
prospective p/e of 14 on 1996 
earnings, which is dear 
enough. 


Higher ma r gins boost Pers imm on 


By Andrew Taylor, 
Construction Correspondent 


■ C-'-v 


Pre-tax profits of Persimmon, 
the UK’s eighth largest house- 
builder. jumped 34 per cent, 
from £8.44m to £11 Jm, in the 
first six months of this year, 
helped by sharply higher sates 

and margins 

The housing operation on its 
own increased profits by 85 per 
cent, with last year’s figures 
boosted by sale of advance cor- 
poration tax benefits of £2J6m. 

Turnover advanced from 
£73.4m to £91 Jm. 

The interim dividend is 
increased from 2Jp to 3p, and 
is more than twice covered by 
earnings per share which rose 
from 6.7p to Tp. 

The shares put on 10p to 
dose at 262p yesterday. 

Mr Duncan Davidson, chair- 
man, said profit margins had 
risen substantially as the 
group had used up much of the 
expensive land it bought in the 
late 1980s. Salas incentives 
introduced during the reces- 
sion had also been reduced, 
while new house prices had 
risen by a “few per cent". 

Selling costs, which had 
risen from £1500 per home in 
1989 to £5,500 in 1992, had 
fallen to £3,700 by the first half 



Persimmon expected to 
increase the number of plots to 
about 20,000 during the next 18 
months. Mr Davidson said net 
borrowings as a result could 
rise to about £4Dm by the end 
of this year, equivalent to gear- 
ing of 20 per cent 
This compared with net cash 
of £6m at the end of June fol- 
lowing the group's £50m rights 
issue in March. 


d 


ItaorHumpMaa 

Duncan Davidson: land holdings increased to 16,500 plots 


of this year and were expected 
to fall to £3,000 next year. 

The number of homes sold 
during the first half had 
increased by 145 per cent, 
from 1,260 to 1,443. Persimmon 
expected to push up sales fra: 
the year as a whole from 2,771 
to at least 3,250, rising to 4,000 
next year. 


Mr Davidson was confidant 
that the slow recovery to the 
housing market would con- 
tinue. The company, to satisfy 
Its expansion plans, had 
increased its land holdings to 
16500 plots owned or con- 
trolled with planning permis- 
sion. This compared with 
about 14J00 a year ago. 


Persimmon's share price, 
which had underperformed the 
sector by about 7 per cent 
since the March rights issue, 
deserved to bounce back yes- 
terday, helped by better news 
of August house sales. The 
margin improvement is 
encouraging, although the 
company is unlikely to recover 
to previous levels. The market, 
lightly, was perturbed about a 
further increase to the number 
of shares in issue, which has 
risen by 49 per cent since 1990. 
But the relative decline in Per- 
simmon's rating looks to have 
gone too far for a quality 
builder with a strong land 
bank. Pre-tax profits of £8Qm, 
Including ACT proceeds, would 
ptf the shares an a prospective 
E/e of 145, which locks cheap 
against the sector. 


First-quarter loss at GPA I Hartstone 45% take-up 


GPA, the Irish aircraft leasing 
company which in August suc- 
cessfully strengthened Its bal- 
ance sheet with a $998m 
(£800m) aircraft lease portfolio 
securitisation (Alps 94-1) pack- 
age, yesterday reported a net 
post-tax loss of $5m for the 
quarter to June 30. Losses in 
the year to March 31 1994 
totalled $64m. 

The package enabled GPA to 
meet the terms of the refinanc- 
ing thrashed out with its bank- 
ers in October 1993. 

Revenue for the quarter was 
$389m and cash inflow from 
operating activities was $2S3m, 


inclusive of art proceeds from 
aircraft sales of $109m. Respec- 
tive figures for the year were 
$U4bn and SL26btu 

Shareholders’ funds at June 
30 were $182m against borrow- 
ings of $5.4bn. Cash balances 
stood at $29 lm, with undrawn 
facilities of more than 
$2Q0m_ 

Mr Patrick Blaney, chief 
executive, said the trading per- 
formance reflected the continu- 
ing difficult trading environ- 
ment He was pleased that Alps 
94-1 had agreed to acquire a 
portfolio of 27 aircraft over sev- 
eral TnQwHw 


By Peggy HoHngor 


Hartstone Group’s investors 
have taken up less than half 
the available shares In the 
leathergoods and hosiery com- 
pany’s £30m rescue rights 
issue. 

The group win still be able to 
meet its October deadline to 
repay £15m to lenders, how- 
ever - a key element of its 
recent refinancing. 

The issue was underwritten 
by J Henry Schroder Wagg, the 
merchant bank, «nd sub- 
underwritten by several insti- 
tutions. 


After the rights, Schraders 
will control 13J per cent of 
Hartstone, either directly or 
through funds under discre- 
tionary manag e ment 

Hartstone announced yester- 
day that acceptances had been 
received for 44.66 per cent of 
fli p 215.64m shares on offer in 
the 2-for-l cash call at 15p. 
However, it put a brave face on 
the outcome, and pointed to 
the fact that the shares closed 
Kp down at 16p, above the 
rights price. 

Hartstoae’s annual meeting 
to approve the accounts wflJ he 
held in High Wycombe- today. 


Increased Cash Offer 

on behalf of Equiftx Europe (U.K.) Limited ("Equifax Europe") 


PUBLIC WORKS LOAN BOARD MTU 


Quota loans' 


a wholly-owned subsidiary of 

EQUIFAX INC. ("EQUIFAX") 


LWi U 0 1C) P »C) V Wlii^ te O ICI HDWl ; 


1 Offer Document 


Baring Brother* ft Co, United (-Bating*-) announce* on behalf of Eqmfu 
Bafope that, by mean* of a fbmal offer document dated 23* Angus. 1994 (tba 
Tncrgaod Offer Document*), aad by n*6*M of this adve rtis em en t. Eqoifai Europe 
through Baring*, make* an tacit ta ed offer (the "Increased Offer") co UAPT- 
InfaHnfc ■fambo tfr i to aapdie the whole of tho bused and n be baaed ord i n a ry 
■tun capital of UAPT-Infollnlc. Term* defined in die Increased Offer Document 
have tba same naBafagi In dda advettiacaaiL 

The toci Bia od Offer far die UAPT-InfoCnh Share* to on tbs baato of £&50 In caah 
fat ««* UAPf-InfaUak Share. Tbo M tens* and condlrkiai of the locreaaed 
Offer are rot out in Ibe Increased Offer Doormen and iluiX&QO Otter Document. 
The facMMsad Offer to ool being unde, directly or indirectly in the United States, 
Canada or Australia, or by tba um of the mail* of, nr by any means or 
tatroncentalliy of United State*. Canadian or Australian intestate or foreign 
tauiumce or of any freflfry of a national *t»amtia» exchange of United State*, 

f Snindn Qg Ttfl iDCfafilM, bflt fal OQt fQ, W n.i^^.lnalm^ 

Mot and tefapbooa. Fraon wbhfag to accept the bcreaaod Offer atoukl not tree 
Mb mafia Or any aw* means or LnstrumootaHty for any pttrpoae directly a t 
fadbactly rebad to aaxpaance of tbs hmmd Offer and jo doing may favafiibte 
Mypoqmtod acceptance. 

The Inonand Offer to being made by meana of tbo berated Offer Document end 
ihb aetarttoameal and la capable of Maptanco from and after 3pm on 251b 
Augnc, lW.A « op ton cw of the banned Offer MuM be rcccfrtd by not tom 
fan 3pm on fab SepMnbe, 1994 (or neb later tfaie(s) aadfor daMfa) m Eqtdfo 
Bnspa may, aatyatt fa tba niu of tba Clljr Coda, dedeto). Coptoa of die bowed 
Off* Docmnant and Revtaed Rum of Acceptance are avaflaMe far caUaedon fan 
Bering Brtfam ft Cb, LfadU. C Bfcfcpgata, London BCBV4A& 

Thia adeartfanwa Is pnblfibed an behalf of Equifax Europe and has ban 
apprond by Map. a wnab# of Tba SaentUea and Item Authority, fat die 
pmpoM of aadtos 57af tba Rnandal Sarrfcn Act 1986. 

YM ihoeM note dnt fa cotaedtawkh Dm taaaaaedOffeff.Bufagt to acting for 
Bepdfast Enropa rad BO one atoa and wOl not be mpaoibto fa anyone odn than 
Barite Strop* far pnvfaBag be pnaaetfana dfanM fa cunmeii of Bering* w 

faporidfaf aMte tafabtan tin banned Offer. 
ltoPhecwmofBipi lb wan^wqiooribflityfafdiefafannatfaBconbdBedfaddi 
adratbamont and to the beri of Mr kno«W|e and belief (havfag taken all 
i mtuirVl ova to anaore Oat asch la tbe one) tba fa fata a tl oo rrenahiail fa rid* 
edvrertownan U t fa aooordnea wifadte facnind dona net oreit anyafag gfcely B 
tffaet tba ImpoR of auob tafannatk*. 

i* s *m + *,m* 


i 

Owr 1 up to 2 — 
Over 2 up to 3 — 
Ov®r 3 up to 4 _ 

Over 4 up to 5 

Over 5 up to 8 — 
Over B up to 7 — 

Over 7 up to 8 

OvarS up to 9 — 
Over 9 up to 10 — 
Over 10 igi to IS . 
Ovor IS upto2S . 
Over 26 


VenqMHfenAanl par.aMHffieraadnen-OBBteWmaapar earn ugh* In e«A ameam 
quern loena, fSM* wgji w wae or re tofaad. tt ffcpwmnt by l fa| W> MM Sy (toad ecpn 
ru ff f t panmewa » tnataa* oMptoand ma n}, a Vflai h M f l eady paymeae c< inMit erty. 


The otcMtaJ realise thasatlaui la .M ie r 


Market-Eye 


07 1 !-•••) H / N 7 


London 9VonKM3toHAMaa 


Signal 


O 13&» aefanre dnpfaeflona O 

O AT DATA mOM mo A DAY O 
O steal SOFTWARE QU0E O 
Cal London 9 44 + 0271231380 
far your outdo and Sfanai pncnW. 


Pt utnirniin Ai ■. |i r.-. I !. lily ( )il ( ’’i it '■ ! ■!* -i >i t • 

Petroleum Arc/ws 



ICUPUtWMpfo 

MGMmPIm 

UntefSnxM. 

TAtTIMOW 

PfaceTIMSM 


Mowlem 
returns to 
black with 
£700,000 


By Ctrtetopher Price 


John Mowlem, the construc- 
tion equipment an d contract- 
ing group, moved back into the 
black, with interim pre-tax 
profits of £700,000 against a 
loss of £4L8m for the same 
period last year. 

The results, for the six 
months to June 30, were the 
first since a financial restruct- 
uring in March, and showed all 
the group’s divisions improv- 
ing. Borrowing was’ all hut 
wiped out by the proceeds of 
the £84m rights issue, and the 

iKnpnaal of Hia housebuilding 

division in July - sold to Bea- 
zer for £Slm - has left the 
group cash positive. Turnover 
slipped £12m to £846m. 

The SGB scaffolding hire 
arm showed the most marked 
improvement, with profits 
nearly tripling to £6 Jm 
(£2. 4m). Contracting moved 
from break-even to notch 19 
profits of £700,000. Losses at 
the London City Airport fell by 
33 per cent to £L6m (E24m). 

Earnings per share were Q5p 
(38.4p losses). The company 
r q jfyr q fiv? ffaa intenffim fin pay a 

final dividend of 2p. 


• COMMENT 

Shareholders who stumped 19 
the £64m needed to stop Mow- 
lem breaching its covenants 
six months ago will have been 
doubly relieved yesterday to 
see the group return to profit- 
ability, and the shares cr e e pin g 
above the loop rights issue 
price. That tbe company has 
turned the comer is beyond 
doubt This is reflected to ana- 
lysts' pre-tax profit forecasts 
for 1995 which range from 
£Um to £18m - a handsome 
leap from the current year's 
£3m to £5m estimates. How- 
ever, beyond this, market opti- 
mism begins to dry op. Few 
analysts share Mowlam’s belief 
that it can achieve £40m 
annual profits, even in the 
medium-term. Even at the bot- 
tom of next year’s forecasts, 
the prospective p/e is about 18 
mating the rating look very 
demanding. 


Louis Newmark 
cuts deficit 
to £896,000 


Louis Newmark, the engin- 
eering and specialist equip- 
ment group, reduced pre-tax 
losses from £158m to £896,000 
in the year to April 2. The 
result is fn line with Interim 
expectations with the second 
half loss coming down from 
£689,000 to £258,000. 

Mr John Newmark, chair- 
man, said that the first half 
loss for the present year was 
likely to be similar to the 
same period last time. But he 
said that he would expect a 
generally improved trading 
situation to show through in 
the secozd half. 

Turnover rose from £235m 
to jE26JBm, helped particularly 
by a 39 per cent Increase in 
watch sales from £4.7lm to 
£653nu 

Losses per share were 2L3p 
(535p) and again no dividend 
Is recommended. 


Provident Financial 
ahead 40% to £30.7m 


By Alteon Smith 


Provident Financial, the 
personal loan and consumer 
finance group,- yesterday 
reported a 40 pm- emit rise in 
interim pre-tax profits from 
£2L9m to £30.7m. 

The dividend is raised by 37 
per cent to 65p. The aim is 
that this tixmld represent (me 
third the final dividend 
two thirds of the total for the 


Almost all the profits 
tocrewy came from flu* home 
collected credit business, 
where the pre-tax outcome for 
Qw six mouths to June 30 rose 
99 per cent to £27 Jm (£20 Jm). 

There was a 12 per cent 
increase in the amount of 
credit issued, reflecting a rise 
of about 6 peg cent in the num- 
ber of customers, which 
reached l.im, and a higher 
average loan at between. £300 
and £400. The group's central 
costs fell from ££L4m to £2.6ta. 

The home collection credit 


business saw a farther reduc- 
tioa in the number of offices to 
257, against 287 at the year- 
end, and a farther cut of 46 in 
the ri TTT r i ^ v * r of staff to 3,404. 

By contrast, the self-em- 
ployed sales force increased by 
170 to about 8,000. They deal 
mainly with tenants cm council 
estates act as agents col- 
lecting payments from borrow- 
ers' homes for the unsecured 
loans offered by the group. 

Mr John van Kuffeter, chief 
executive, said the group was 
committed to a continuing pro- 
gramme of cost red u ction. 

The charge for had debts 
rose by 4 per cent - a higher 

ftb BOhTt e anvmnt than in the 
first half of 1993, but a lower 
proportion of the amount of 
credit Issued. 

The insurance division 
reported a 4 per cent increase 
in pre-tax profits to £5 .5m 
(£5Jm), which came almost 
entirely from Provident Insur- 
ance, the underwriting opera- 
tion. It specialises to areas of 


the market where competition 
from direct witters has not 
been so fierce, such as third 
party insurance. - 
Colonnade Insurance Bro- 
kers broke even; It made 
£528500 last tune. - 


Not for the first time. Provi- 
dent Financial has produced 
better-than-expected results. 
Now that it has had a fbll year 
of benefits from getting but of 
nan-core businesses and strin- 
gent cost-cutting, the question 
must be whether this progress 
can be continued. The growth 
in loans is encouraging, but 
the scope for further reduc- 
tions ip c 08 * 8 must narrow 
eventually, slowing Increases 
in profitability. Full-year pre- 
tax profits of about £80m 
would give it a prospective p/e 
of about 135. The business is 
moving in the right direction, 
but after a good run since the. 
end of June the price looks 
about right 


Par tco reveals three I Guinness 


year expansion plan 


By Peter Poo ni o 


Mr Peter Redfem, managing 
director of Partco, said yester- 
day he wanted the group to 
double in size within the next 
two to three years, both by 
acquisition and organic 
growth. 

His statement own w> as the 
independent distributor of 
automotive parts and equip- 
ment reported a 46 per cent 
rise in pre-tax profits from 
£2.01m to V9-Q3m for the six 
months to June 30. The 
advance prompted a 13p climb 
to the share price to 246p. 

Turnover at Partco, which 
raised £20.7m at its flotation in 
March, rose 35 per cent to 
£re.6m (£63 -5m), about 1 per 
cent of the total UK market, 
according to Mr Redfem. He 
added that inflation had a 
minimal effect to its market 
place. 

Mr Chris Scott, finance direc- 
tor, Said that sales had only 
risen 7 per amt to three years, 
but that the operati n g margin 


rose 17 J points to 45 per cent 
The group ascribed this to 
improved productivity and cost 
contxoL 

Partco completes tomorrow 
the £2.41m acquisition of the 
32-branch Woodhead RSR, 
which broadens the group’s 
scope beyond cars and light 
commercial vehicles into 
tracks and buses. - 

Mr Scott thought Woodhead, 
which along with Fartco’s 
greenfield Bgc pansinn increases 
the number of branches to 244, 
should be earnings mhtmtmg 
to 1995. to the year to March 
1994. Woodhead had operating 
profits of £629,000 an turnover 
of CTQ-ftn- He added that there 
were still a farther 200 loca= 
tions into which the group 
coold expand. 

The group has £5.1m cash in 
hand. After a tax charge which 
Mr Scott expects to remain at 
20 per cent for two mare years, 
ramin g s grew 33 per cent to 
8.4p (6Jp) per share. A maiden 
Interim dividend of 2p is 

declared- 


buys back 
Haig brand 


By Roderick Omi 


Courts Consulting shares 
shed 25% on dim outlook 


By Peter Pearae 


Shares of Coutts Consulting 
yesterday shed 25 per cent of 
their value as the career con- 
sultancy, outplacement and 
residential training company 
reported disappointing first 
half figures. 

The shares closed 22p down 
at 67p after Mr Stephen John- 
son, chief executive, said he 
expected operating profits for 
the full year would fell below 
expectations and would only 
p ^rfrii tha Cl figm of 1993. 

Pre-tax profits emerged at 
£341,000 (losses £5 24m after 
exceptional costs of £6.41m). 
Turnover on continuing 
operations declined to £7.75m 
(£9 .42m) with discontinued 


operations contributing a fur- 
ther £l-98m. 

Operating profit from con- 
tinuing activities was sharply 
down at £569,000 (£L13m); dis- 
continued activities incurred 
losses of £802,000. 

Mr Johnson saM the 
cause of the decline was lower 
revenues from outplacement 
because of deferrals of large 
contracts. 

He added that revenue dam- 
age to the first half would not 
now be repaired to the second. 

Operating profits at the resi- 
dential training division olid to 
£408500 (£599,000). 

Nevertheless, dividends are 
resumed via an interim of 0.4p, 
payable from earnings of L2p 
(lasses 2L43p) per share. 


Haig, once the leading Scotch 
whisky in the UK, has 
returned to Guinness's dri nks 
portfolio after eight years with 
Whyte & Maekay Group, a 
subsidiary of American 

Brands. 

After Guinness took over 
Distillers in 1988, the Monopo- 
lies and Mergers Commissten 
required Guinness to reduce 
its share of tile UK Scotch 
im*«t to 25 per cent by sell- 
ing Haig and nine other 
brands to Whyte A Maekay. 

Guinness retained Dimple 
Haig, the upmarket version 
famous for its "pinch” bottle, 
and the Haig brand elsewhere. 
It is the leading Scotch in Ger- 
many, Greece and Ireland. 

A brsM dating back to the . 
19tiL century, Haig wss the UK 
market leader until the 1960s. 
ft then suffered from a super- 
market price war and competi- 
tion from other whiskies such 
as Bell’s, Teachers and 
Famous Grouse. Indostqr 
observers believe only some 
30,000 cases of Haig were said 
in tiie UK last year, mum m ied 
with 3m for Bril’s, the market 
leader. • • . . . 

"We have no plans to make . 
it a major brand in Britain,* 
Guinness said. . "We will cen- 
time to focus ah BdTs but 
there may he a niche market- 
ing opportunity with Haig." - 

Guhmess declined to give a. 
value for the deed, but it is 
thought to he under £5m. ; 


Spurs victory 
takes shares to 
four-year high 


Qy Tim Burt 


Waterglade talks to rebels 


By CaroOne Southey 


Waterglade International, the 
lossmaking property developer, 
announced yesterday it was 
holding talks with rebel share- 
holders who have been seeking 
to oast the board, 

Mr David Cunningham, 
chairman, said the board was 
seeking "an amfaahia solution” 
to tbe company's problems. 

The board overcame 
attempts by rebel shareholders 


to have it ousted by cancelling 
an EGM on August 18 an a 
technicality. 

The meeting had been wiHw? 
by rebel shareholders, led by 
Mr Winston Ng, to tostal a new 
board which would tnidmte Mr 
Ng; Mr Anthony Midgen and 
Mr Selwyn Midgen. 

Mr Anthony Midgen said 
counter proposals tnada by the 
board last week had been 
rejected, but he hoped for a 
farther meeting soon. 


Irish Continental cuts loss 


By John McManus In DuHn 


Irish Continental Group, the 
fbrry and freight company, 
reduced interim losses by 85 
per cent to I£345m (£&42m) as 
a result of tocreased passenger 
and roll enroll off freight truf- 
fle across the Irish Sea. 

T ur nover grew by IB per cart 

to K46m In the six nymthg to 
the end of April, reflecting 
increased carryings of cars and 
freight. There was also a first 
time contribution from the 
charter of tbe MV Pride of Bil- 
bao super-ferry which ICG 
acquired for Z£S6m last Novem- 
ber and Is chartered to P&O. 

ICG traditionally incurs a 
loss in tbe first half of the year 
since the tourist season coin- 
ddas with the second halt 

"It is primarily on the Irish 
Sea that we .are seeing 
growth," said Mr Bamonn 
Rothwell, managing director. 
The ferry division tocreased 
turnover by IB per cent to 
031.7m, and the imesonal lose 
improved from I£4.7m to 
Tvanm. 


However, the group’s freight 
capacity on the Irish Sea 
remains constrained by the 
slzs of its fleet. "There Is frus- 
trated riwnarwl oil Hi* freight. 
side,” according to Mr Roth- 
welL ICG plans to introduce a 
new l£46m super-ferry on the 
Irish Sea routes to 1996. The 
ship is currently under con- 
struction in the Netherlands 
and the cost Is being met 
through bank borrowing and 
the proceeds at a I£29 Jm rights 
issue last March. 

Mr Rothwell said the group 
was experiencing Increasing 
competition an us routes to 
France from the Republic of 
Ireland, with Its main rival 
Brittany Ferries increasing 
capacity on these routes. 

The container division, 
which toctodes a 25 per cant 
stake in the 

ping company, increased turn- 
over by 16 per cent to l£U5m 
far n p wr u tl H g p mflfai nf Tffl fi m, 

including IESOO.OQO from BriL 
ICG has ended its freight joint 
venture with Pandora on the 
Dublin to Liverpool route as ft 


was not m aking a ri gntfjrant 
ContrUi rntton 1 

Mr Rothwell declined to com- 
ment on the company's full- 
year performance, saying that 
a clear picture would not 
emerge until, after the end of 
the tourist season. The com- 

S declared an interim thvi- 
df L2p (057p). 


Shares in Tottenham Hotspur 
yesterday climbed lflp to a 
four-year peak of 144p as tite 
north London' football club 
reaped the benefits of its suc- 
cessful league form. 

About 45,000 shares were 
traded as the price jumped to 
Its highest level since Mr Alas 
Sugar, chairman of the Anwt- 
rad electronics group, took a 
stake in the dub fn 1991. 1 

Yesterday’s rise, prom p ted 
by the dub's third win to four 
games, boosted the value of Mr 
Sugar’s 5058 per cent holding 
to 231.7m. 

Analysts were reluctant .to 
forecast likely pre-tax profits 
for the year to May 31, due 
next Thursday, hut predicted, 
that operating profits before 
transfer fees and provisions 
could rise from " £154m to 
about £25m. 

The share price Increase, 
meahwhOq, lifted the compa- 
ny's market capitalisation by 
some 15 per cent to £23.lm - a 
threefold Increase - on the 
£75m value hi 1902 when Mr 
Sugar joined forces with Hr 
Terry Venables, the former 
teem manager, to mount xldd. 

At that time, Mr Sugar and 
Mr Venables paid 75p a share 
for a 37 per cart stake. 


DIVIDENDS ANNOUNCED 


Currant 

payment 


Date of 
payment 


Core* - 
pondrn 
dMdand 


Coutts Conoutt h* 

Draniridc Hunter int 

bfahCn—t int 

JFUtWaa At 

JefaMtonPram fat 

Mowfam ftohnj fat 

PacMe Hutton Jki 


Tote Tote 
for lari., 
year ya* 

— “ SC 


PravMontFfn ^Jnt 

Pate** a fat 

Bopnar int 


SSS ft ^ 5 % PS” P**? awapt whara othwwfae 




irinS 


, >' 1 

1.1* 




* i 1 ’'. . 1 


'aim falls 
IK as oil 
ifctdips 


INioi 

douh 


K0fakf»j*f 



hto 




M'S--., • 

0 * fa’, 


i- , . 


K’-.- 


S 1, 










■ !•; 


.—J 


^NANCXVL TIMES 


THURSDAY SEPTEMBER 1 1994 


COMPANY NEWS: UK 


•7in , 




^ iiincss 
buys back j 


! iaig 


1 


' • ■ i. ' . 


' " ■' •>!- 
•••• V • • . .w 


S|ti IP* 

„ V. 

tr.ur-'vds - 



Artisan closure behind 
Spring Ram deficit 


By Ancbnw Bolgor 

Spring Ram. the YorS- 
tiure-based kitchen, bathrooms 
and furniture group, is to close 
its lossmaking Artisan Tile fac- 
tory in Bradford. 

The new management, 
appointed after institutional 
investors forced a boardroom 
shake-out last year, said 
intense price competition from 
imports was likely to prolong 
the losses at Artisan, which 
started production in 1592 and 
lost £Lm in the last six months. 
it employs 95 people, but the 
group hopes to redeploy about 
30 of the workforce. 

An exceptional charge of 
Eft 5m for the closure pushed 
Spring Ram to a pre-tax loss of 
£l.lm for the six months to 
July 2. This compared with 
losses of £34.4m last time, 
which included £80.3m of 
write-offs and charges. 

The group incurred an oper- 
ating profit of £9. 9m, compared 
with losses of £4Bm. Sales rose 
by II per cent to cism. 

Mr Rogar Regan, chairman 
said: “The deflationary pricing 
conditions both in our home 
and international markets and 
in the UK economy as a whole, 
coupled with the first signs of 
increased raw material prices, 
make internal improvements 
in efficiency and productivity 
all important" 

Spring Ram’s kitchen divi- 
sion, its biggest and most prof- 
itable business, increased sales 
by &5 per cent to £62. Bm, and 
operating profits rose from 
£4. 7m to £6m. After a good first 
quarter for the division as a 
whole, the rate of sales growth 
in the UK home improvement 
market was checked in the sec- 
ond half of May and June. 

Cairn falls 
35% as oil 
price dips 

By Peggy Hoffinger 

Low oil prices hit Cairn 
Energy, the Edinburgh-based 
oil and gas explorer which yes- 
terday announced a 35 per 
cent drop in interim net attrib- 
utable profits: to £415,000, 
compared with £641,000. 

A 19 per cent decline in the 
average price of ofl per barrel 
to $13.54 offset the benefits of 
a rise in production. Turnover 
increased by 2 per cent to 
£3. 4m, while production rose 
by 370 barrels of oil equivalent 
per day to 4336. 

The results included a three- 
month contribution from the 
on-shore assets acquired from 
Kelt Energy for £&7m. 

Earnings were 0.64p (1.2ip) 
and there is no dividend. 

It is proposed to dispose of a 
farther stake in Cairn Energy 
USA, the US subsidiary, to 
raise a net £17.5m. 

The UK group has over the 
last year been steadily selling 
shares in the US company to 
raise funds for exploration and 
to reduce debt Inchuffng the 
proposed disposal, the group 
will have raised £33m from the 1 
share sales and Issues since 
June 1993. 

Cairn is pro posin g to sell 
3.7m shares in CEUSA, redne- 1 
tog Its holding from 54 per 1 
cent to 17.9 per cent. The 1 
resulting stake would be 
worth some £15m. i 

Mr Bill Gammell, chief exec- \ 
utive, said the group intended I 
to use the proceeds of the sale ] 
to increase its production and 
reserve base outside the US. • 



r- * - 




Ryan losses 
deepen to 
£7.35m 

Ryan Group, one of the 
companies expected to hid for 
British Goal assets later this 
month, incurred pre-tax losses 
of £7 .35m in the year to Decem- 
ber 31, compared with a deficit 
of £3.3lm in 1992, writes 
Michael Smith. 

Operating profits were 
£3.17m <msm) on turnover of 
£ll3m (flllm). Net interest 
payments fell from £5J9m to 
£5,Wm. but losses on closure of 
discontinued °P erat i?Ji s 
amounted to £7.07m {£366,000). 


In its first set of results since 
paining a listing through its 
reversal into Greyfriars Invest- 
ment Company, IAF ,S ro ^S 
reported pre-tax profits of 
£2.6lm for the nine months to 
end-June. . h 

The outcome compared wiin 
a profit of £2.02m for the previ- 
ous 12 month period and was 
achieved on turnover of 
Efi.Blm, against SSMM- ““ 
adopted the June year end at 
the time of the 
Basic earnings 
emerged at 2.4lp (l-8®P)* 
jjffp (1.97p) fully diluted. 


Tony AnSwa 

Roger Regan: econom ic conditions mean a tough year ahead 

Sales to the bathroom dirt- • COMMENT 
sion fell to £2 6. 3m (£29.7m), but The new tgam at spring Ram 
the eliminat ion of lossmaktog continues to make progress, 
activities enabled the division, but *h<» sluggish trading envi- 
to report operating profits of ronmenl ar *ri rogtlifir raw mate- 
£100,000, compared with a loss rials mean they face a hard 
of £3 . 2m last tune. slog. Closure of Artisan will 

The special products divi- disappoint, bat the losses could 
sum. which includes Artisan, scarcdy be mainbrineri - the 
increased sales from £14.9m to whole venture will have cost 
£2L5m and cut operating losses the g*« g p wsm crfrir-o start-up, 
from £7Jm to £4. 7m. Turnover including the latest eg 
rose at Regency Doors, while exceptional charge. Analysts 
operating losses fell expect operating profits of 

Stag, the group’s furniture about £fim this year, but all 
business, Increased sales by 21 eyes are on 1995 and 1996 when 
Per cent to £15 An. Operating profits could bounce bade to 
profits remained static at £ism and more thaw £30m 
£800,000 as the group invested respectively. The chares, down 
in new products for its living i%p to 51p. are on a sky-high 
and dining room ranges. multiple of 36 thie year, but 

Losses per share were 0-3p, that fells to 16 for 1995 and 
compared with losses of 10.4p below 10 for 1996. They remain 
last time. an attractive recovery play. 


Psion more than 
doubled at £2.9m 


By Alai Cane 

Psion, the supplier of 
hand-held computers and com- 
munications equipment, main- 
tained its recovery with profits 
more than doubled at the half- 
way stage. 

The pre-tax outcome for the 
six months to end-June was 
£2. 92m, against £1.07m, 
achieved on turnover ahead 57 
per cent at £28 An (£18. lm). 
Earnings per share were 8.65p 
(3.4ip); the interim dividend 
goes up 10 per cent to Lip. 

The results were above 
market expectations and the 
shares improved Up to dose 
at 2S5p. 

Psion makes a range of hand- 
held computer*, including the 
Series 3 family, aimed chiefly 
at consumer markets and the 
HC range for corporate use. 

Mr David Potter, chairman, 
said each product area had 
shown good growth. Sales of 
the Series 3 and 3a jumped to 


£L6.7m (£8. 15m) while sales of 
HC products almost doubled at 
£3-6m (£L88m). 

The older and cheaper 
Organiser n products saw sales 
decline just 15 per cent to 
£4.05m. The datacommunica- 
tions division turned over 
E3-S9m (£2m). Psion is a leader 
in credit-card sized modems - 
devices used to allow comput- 
ers to communicate over tele- 
phone lines. 

Mr Potter said the company 
now bad 1,500 retail outlets in 
the US including Radio Shack 
and Office Depot The market 
had been adversely affected by 
the relative failure of other 
manufacturers’ “personal digi- 
tal assistants" using pen-based 
technology, however, and an 
advertising campaig n aimed at 
establishing brand awareness 
was planned. 

Psion has cash of £842.000 
and Mr Potter did not antici- 
pate having to raise additional 
funds to the foreseeable future. 


Prolific plans new trust 


By Bottom Hutton 

Prolific, the fond iwawap »ni y »nt 
subsidiary of Scottish Provi- 
dent, is planning to launch its 
first investment trust to add to 
a range of unit trusts. 

Prolific Income will be a UK 
income growth trust aimed at 
private investors, on similar 
lines to the existing Prolific 
High Income unit trust. 

The unit trust yields about 
3.3 par cent, and ranks 30 out 


of 94 funds in the sector over 
the five years to August 1, 
according to MicropaL 
The public offer is due to 
open on September 22 and 
close on October 13- Shares 
will be issued at lOOp, with 
launch expenses capped at 49 
per cent. Warrants will be 
attached cm a l-to-5 ratio, and 
the trust will have an initial 
life of 10 years. The annual 
management fee will be 09 per 
cent. 


NEWS DIGEST 


Following the loss of its 
investment trust status, the 
company was left with a large 
adverse balance on the capital 
reserve account It proposes to 
present resolutions at the 
forthcoming AGM to reorgan- 
ise the share capital and 
reserves to correct this posi- 
tion. 

Conditional upon these reso- 
lutions being passed, the direc- 
tors propose to pay a nominal 
dividend of 01p. 

Farnell 

Famell Electronics has sold 
Eurotec Optical Fibres to 
Schott-Glass. 

The disposal will mean a 
£1.6m charge, which is priori- 
pally goodwill arising from the 
ori ginal acquisition. Euro tec 
has sales of £3m and net assets 
of £1JU 

Baring Emerging 

Met asset value for the Baring 
Securities Emerging Markets 
Index Tracker Fund fell from 
$14.67 to $13.18 (£8.50) over 
the six months to the end of 
June. 

Net realised gain over the six 
months was $74fcFJ0. 

Rothmans Industries 

Rothmans Industries' subsid- 
iary. Rothmans of Pall MaU 
(Singapore), has sold buildings 


for M$185-3m (£479m) to Win- 
will Investment and Welwyn 
Investment, conditional on 
shareholders’ approval. 

The buyers wfll grant a ten- 
ancy of the buildings to RPMS 
until no later than February 
1998. 

The sale win result in an 
expected gain of MSL63.4m. 

Vision Express 

Vision Express, the optical 
retaOer, has concluded a £30m 
equity investment with GC 
Companies, Advent Interna- 
tional Corporation and Besse- 
mer Venture Partners giving 
them a total holding of 36.per 
cent 

In 1993 Virion reported pre- 
tax profits of £59m on turn- 
over of £6lm. 

Greycoat 

Greycoat, the property devel- 
oper, has sold Regent Arcade 
House in Regent Street, 
London, to Threadneedle Prop- 
erty Fund Managers for 
£lL4m. 

The purchase price reflects a 
net initial yield of 59 per cent 
and an equivalent yield of 
about 7 per cent 

Geest 

Geest, the fresh produce and 
prepared foods company, has 
bought $t Martins-W altham 


Domnick 
Hunter 
advances 
to £2.6m 

By Andrew Botger 

Domnick Hunter group, the 
filtration and gas separation 
company floated in March, 
increased pre-tax profits by 29 
per cent to £2.6m in the six 
months to June 30. 

The results, coupled with an 
upbeat trading statement, bol- 
stered the Tyneside-based 
group's status as one of the 
most attractive of recent flota- 
tions. The shares. Launch ed at 
2O0p, yesterday closed lOp 
higher at 280p. 

■Sales rose by 17 per cent to 
£17.7m. Tke pre-tax figure was 
flattered by reduced interest 
charges after flotation; the 
underlying performance 
showed in operating profits, 
ahead 21 per cent at £2. 72m. 

Mr Brian Thompson, execu- 
tive chair man, said: “A strong 
level of orders and sales con- 
tinues into the second half and 
there is every indication that 
this situation should prevail 
for the remainder of the year." 

The industrial division, 
which makes dryers and filters 
for compressed air and gases, 
benefited from an uplift to 
market confidence- In particu- 
lar, sales of compressed air 
dryers were strong. Operating 
profit rose 27 per cent to 
£2.67m, on sales of £13JSm, up 
18 per cent 

Mr Thompson said the 
group's new nitrogen genera- 
tors were attracting “tremen- 
dous" interest Sales increased 
by 50 per emit to SB6HJIOO and 
there was “huge” scope for the 
generators, which produce 
nitrogen gas from compressed 
air at a fraction of the cost of 
cylinder supplies. A £2.5m 
extension to the industrial 
division’s Bfrtley plant will 
increase space by 50 per cent 
He said the process dlvirimi 

- which filters pharmaceuti- 
cals and liquids using sophisti- 
cated membranes - was still 
in tiie evolutionary phase of 
its development Sales rose 14 
per cent to £49 m, but invest- 
ment in an overseas sales net- 
work was behind a fail in 
operating profits from 
£151,000 to £51,000. 

Fully-diluted earnings per 
share improved to 3£p (3.02p). 
A special interim dividend of 
lp Is declared for the three- 
month period since listing. 

• COMMENT 

Analysts love this company, 
which attracts plaudits such 
as “a little gem" and “one of 
the best small companies I 
have ever seen". Its products 
are market leaders and more 
than 60 per cent of sales are 
exported to more than 40 
countries. The dryer business 
is going well, and the new 
nitrogen gene ra tors have tre- 
mendous potential. The pro- 
cess division is also seen as a 
sound investment, in spite of 
its present modest profits. 
Alas, all this quality comes at 
a price, and forecast fall-year 
profits of £5. 6m put the shares 
on a prospective multiple of 23 

- a 45 per emit premium to the 
market The shares are tightly 
held, but those who are lucky 
enough to have got on board 
still have no reason to sell. 

British Steel talks 

British Steel is in talks with 
AG dm- Dfflinger Hutteuwerke 
and Mannesmannrohren- 
Werke about setting up a joint 
venture involving large diame- 
ter welded pipe businesses. 


Abbqy from Hazlewood Foods 
for £6 -5m flash - 

St Marttos-Wattham Abbey 
manufactures a range of 
dressed salad products, princi- 
pally cinder customers’ own 
labels, Tha ac q uisition fnelndes 
Hazlewood’s Greek dip opera- 
tion, which currently forms 
part of Forrester Foods. The 
combined busines se s had an 
after-tax p rofit of £8,000 from 
turnover of £10Am for the year 
to end-March, with, assets of 
£5Km. 

Pacific Horizon 

Net asset value at Pacific Hori- 
zon Investment Trust at July 
31 was 4£L65p per share, a rise 
of 19 per cent on the 4L74p of a 
year earlier. 

Available revenue was 
almost trebled at £107,001, , 
against £37,520. Barn togs per : 
share worked through at 0.26p 
and a final dividend of { 
0.1 lp (nil) Is recommended. 

JF Utilities 

Net asset value per ordinary 
income share at Johnson Fry 
Utilities Trust was 98.lp at 
July 31, compared with 944p at 
July 14 1993, when the trust 
started trading. 

Net revenue was £2.43m and 
earnings per ordinary share 
were 7J9p. A final dividend of 
2L4p is recommended, making a 
total of 7.2p! 


Sereo buoyed by organic growth 


By Simon Davies 

Shares of Serco firmed 14p to 
297p yesterday as the faculties 
and contract management 
group reported sharp organic 
growth within a 38 per cent 
interim profits advance. 

Turnover rose 46 per cent to 
£120m (£823m), with substan- 
tial new business po"* 8 helping 
existing operations expand 
sales by 21 per cent 

The pre-tax outcome 
increased from £4. 35m to 
£6m, although 17 per cent 
of tiie increase came from 
three companies acquired in 


the second half of 1993. 

Mr Richard White, chief 
executive, said: “We see the 
trend we've set for organic 
growth being maintained." 

Defence continues to account 
for close to 30 per cent of sales, 
and Mr White said there was 
substantial scope for new con- 
tracts, as the Ministry of 
Defence continues its effi- 
ciency drive by contracting out 
to the private sector. 

Sereo recently won the MoD 
contract for air traffic control 
at Gibraltar airport, in addition 
to winning the civil contract 
for a range of services 


at Liverpool airport 

Other new business included 
a new contract for mainte- 
nance of London's traffic sig- 
nals. giving Serco maintenance 
responsibility for two thirds of 
the the capital’s junctions. It 
also won a contract from York- 
shire Water for "^Intern of 
Its vehicles. 

When Serco was listed, 10 
per cent of its staff worked 
overseas. The figure Is now 
closer to 30 per cent, as it has 
expanded primarily in the US 
and Aria Pacific, and is cur- 
rently targeting Scandinavia 

and Ge rman y 


Serco operates primarily 
under fixed rate contracts, of 
which about hair are linked to 
an inflation index. 

It rem ains sensitive to 
increases to wages, however, 
which form its largest 
cost 

Mr White said there were 
si gns of increasing pressure on 
salaries, but he said that this 
was being factored into con- 
tract tenders. 

Serco is paying a 1.25p 
interim dividend, an Increase 
of 18 per cent. Earnings per 
share rose 25 per cent to 5.6p 
(4-5p). 


Johnston Press up by 11% to £6.7m 


By James Buxton, 

Scottish Correspondent 

Johnston Press, the Edin- 
burgh-based group which owns 
weekly newspapers throughout 
Britain, increased pre-tax prof- 
its by almost U per cent to 
£6.67m, a gains t efi/wm, in the 
six months to June 30. Turn- 
over improved from £4L5m to 
£4-L3m. 

Mr Fred Johnston, chairman, 
said market conditions were 
generally improving but 
growth in advertising revenues 
varied between different busi- 
ness sectors and regions. 

The group is to disengage 
from its printing businesses 


which lost £195,000 (£84,000). It 
hopes to sell the two compa- 
nies - Wood Westworth at St 
Helens, Merseyside, and York- 
shire Communications at 
Wakefield, West Yorkshire - 
but if not they will be dosed. A 
provision of £507.000 has been 
made a gains t eit her course of 
action. 

Operating profit, which 
exdudes the pro vision, was up 
18 per cent at £696m (£5 5m). 

The results included a two 
week contribution from Hali- 
fax Courier Holdings, acquired 
in June for £2S.4m. This was 
the group's largest purchase 
and brought it its fast daily 
newspaper, the Evening Cou- 


rier in Halifax, as well as titles 
in West Yorkshire and the Isle 
of Man. The acquisition will 
boost annual turnover by 
between £L0m and £I2 ul 
A mong the group’s other 
newspaper interests, Scotland 
did well, with a strong rise in 
profitability. Newspapers gen- 
erally improved their profit- 
ability in the north of England, 
the Midlands and Sussex. 

Net borrowings were £2m at 
June 30, the group having been 
cash positive at the end of 1993. 
Gearing was 7.1 per cent 
Earnings per share rose from 
l£9p to lSJJp. The interim divi- 
dend is raised to 2.75p, against 
ZSp. 


• COMMENT 

The shares have fallen from a 
peak of 669p in recent months, 
partly because the market 
assumed that as a newspaper 
company it must be suffering 
in the national price war. In 
fact only S per cent of its reve- 
nue comes from newspaper 
sales, the bulk coming from 
advertising. Yesterday the 
shares advanced 15p to 605p 
in recognition of its good 
performance and reliable 
growth record. UBS, the house 
broker, is forecasting pre-tax 
profits of £15. 4m for the cur- 
rent year, for earnings of 31.5p 
and a multiple of 19. That 
seems realistic. 


Restructured Beckenham 
turns in loss of £2.6m 


Ropner improves 22% 
despite mixed showing 


Beckenham Group, the 
USM-quoted heating and venti- 
lation engineer which has 
recently undergone a capital 
reconstruction, reported a pre- 
tax loss of £2 An for the six 
months to April 30. 

The deficit, which compared 
with losses of £186,000 tost 
time, reflected “continuing dif- 
ficult trading conditions, the 
heavy cost of completing 
long-standing contract commit- 
ments, and damage faftintod by 
the financial crisis the group 
has experienced”, the directors 
said. 

Turnover fell from £l7.4m to 


£13 4m and the pre-tax result 
was struck after an increased 
interest charge of £174,000 
(£112,000). Losses per share 
emerged at I2£p (3p). 

The company also 
announced it had sold its Con- 
tract Components subsidiary to 
Simco 651 for £2J5m cash. 

The sale would enable the 
group to concentrate its 
resources on the core ductwork 
businesses and to develop its 
fire protection activities. 

It was also necessary to 
maintain the company’s work- 
ing capital and reduce indebt- 
edness. directors said. 


Ropner yesterday announced a 
22 per cent expansion in 
interim profits despite a mixed 
performance by its property 
investment, engineering and 
shipping activities. 

On turnover up 33 per cent 
to £12m, the pre-tax line for the 
six months to June 30 rose to 
£139m against £L63m. 

Mr Jeremy Ropner, chair- 
man, warned, however, that it 
would be “unrealistic to expect 
the second half to show the 
same degree of improvement”. 

The property division per- 
formed well he said, reflecting 
improved values at the start of 


the year. Two properties were 
sold for £3.03m, some £660,000 
above book value. The ship- 
ping side, which currently 
manages seven bulk carriers, 
lifted profits by 13 per cent to 
£899,000. 

A dull spot was engineering, 
where demand had been irreg- 
ular. “We have suffered from 
significant fluctuations and 
have bad to make some hard 
decisions,” Mr Ropner said. 

The interim dividend is held 
at 3J»p on capital increased fol- 
lowing the enfranchisement of 
the A capital Earnings per 
share were 5.2p (<L2p). 


ADVERTISEMENT 


Uzbekistan: A New Dawn, A New Era. 


The fabled land of 
Tamberlaine the Great, 
the exotic cities of 
Bukhara, Samarkhand 
and Tashkent, and the 
Great Silk Route, 
Uzbekistan evokes 
images of Central 
Asia's wild and rich 
past. Now, this newly 
independent republic is 
opening its doors to the 
West 

Uzbekistan today is a nation of great po- 
Bemol and opporamiiy. It is aaiwdy seek- 
ing Western participation in order to de- 
velop the depth and diversity of its re- 
sources. 

A major agricultural pralucer. especially 
of cotton, where it is the world's fourth 
biggest grower and ihe third largest ex- 
porter. Uzbekistan aLso produces the most 
fruit and vegetables in the former Soviet 
Union. 

Besides its agriculture, the country has 
abundant reserves of gold, oil, natural 
gas. coal, silver and copper. 


SnP* 



ft,* T 


Smafitaul ■ Thf Shu-Dar mnlmirh 

The President of Uzbekistan, 

Islam Karimov, has adopted a 
practical and realistic 
approach in terms of his 
government's policy on 

reforms. This is expressed in 
five principles : 

• Precedence of Economics over 
Ideology. 

■ Support for the people through a 
programme qj s octal reforms 

• Gradual economic reforms ■ no 
shock therapy. 

• Transition to a market economy 
under state guidance- 

• Non-interference of religion in 
state affairs. 


The countiy is ethni- 
cally homogeneous 
(over 70% Uzbek) and 
has a much less frag- 
l men led society than 
some of hs neighbours. 
Religious fundamental- 
ism is discouraged. 
This, logether with the 
country's diverse re- 
sources. highly edu- 
cated population and 
political stability offers 
considerable opportu- 
nities for foreign investors. 

Another major sect or with abundant po- 
tential is Tourism. The cities that once 
lined the Great Silk Route - Tashkent. 
Samarkhand, Bukhara and Kiva - offer a 
rich and exotic cultural heritage. The 
country ofTamberlaine provides a wealth 
of unexplored treasures from the Aral Sea 
in the west to the fertile Pcrtana Valley 
in the cast. 

A vital role in Uzbekistan's eco- 
nomic rebirth and the develop- 
ment of trade and tourism is be- 
ing played by Uzbekistan Air- 
Hxtys. a new leader in Eastern 
Bloc aviation. 

The airline has been through an exten- 
sive modernisation and training pro- 


gramme recently. Tbday. it boasts one 
of the most up-to-date fleets in the region 
and flies modern wide-bodied Airbuses 
with pilots and cabin crew trained by 
Lufthansa. Uzbekistan Airways fliesdi- 
rect to London in just six and a half hours 
and has I btlu to airports throughout Eu- 
rope and Asia. Flights to New York are 
currently being planned. 

“Safe and comfortable flights are the 
motto of our company" says Director 
General Gani Rafikov. "We *unr inter- 
national travellers and tourists to real- 
ise that w place as much emphasis on 
their comfort as they Jo; that we have a 
good safety record and that our interna- 
tional netwrk is expanding every year." 

This recognition of the need to establish 
contact with the rest of the world and 
modernise its infrastructure ina system- 
atic manner is symbolic of Uzbekistan's 
desire to open its doors and welcome the 
winds of charge. 

Today, September IsL , 1994 
is the third anniversary of 
independence of the Repub- 
lic of Uzbekistan. It heralds 
a new dawn for this ancient 
land, but young nation. 



OF THE WORLD 


UZBEKISTAN AND AIRBUS : 
TAKING THE WORLD VIEW 


(tS) UZBEKISTAN 

airways 

72 WIGM0RE STREET, LONDON W1DH 9DL TEL: 071-935 1899 FAX: 071-935 9554 




FINANCIAL TIMES THURSDAY SEPTEMBER I 1S-94 


COMMODITIES AND AGRICULTURE 


LME copper 
rally continues 


By Richard Mooney 

Copper prices continued their 
rally yesterday at the London 
Metal Exchange, reaching the 
highest levels since July’s two- 
year peaks. 

A burst of Investment fund 
buying in mid-session took the 
three months delivery price 
through resistanc e around R»a 
$ 2,500-a-tonne mark, traders 
told the Renters news agency. 
The price touched $2,520 a 
tonne before easing back to 
$2^09.50 at the close, up $39.75 
on the day. 

The aluminium market was 
also strong, aided by news of 
problems at Kaiser’s Ghanaian, 
operation (see next story). Hav- 
ing reached S1.53L50 a tonne at 
the close the three months 
position added nearly $10 in 
after hours trading: 

News that a strike had been 
averted at the Sudbury, 
Ontario, operation of Falcon- 
bridge, the second largest west- 
ern nickel producer, only 
briefly interrupted the metal’s 
price rise. 


Yesterday’s $184 rise to 
$6^59 a tonne for three months 
delivery took the advance over 
the last seven trading days to 
$4SL50. 

• Falcanbridge said it readied 
agreement early yesterday 
morning with wHiw , min and 
smelter workers to avert the 
threatened strike, reports Reu- 
ters from Toronto. 

“We have an agreement as of 
05:15 [local time]” said com- 
pany spokesman Mr Gerald 
Foley at a Sudbury hotel where 
TnnnflflMwgmt and union repre- 
sentatives had been negotia- 
ting through the night. The 
Canadian Auto Workers Uhlan, 
which represents the Sudbury 
workers, had threatened to 
strike if no agreement was 
reached by 0&0Q. 

Mr Foley «M the new con- 
tract would be for three years 
but disrfn«»d no farther details 
of the deal, which covers same 
1,400 workera- 

The Sudbury plant last year 
produced 38,300 tonnes of 
nickel, 47,200 tonnes of copper 
and 800 tomes of cobalt 


Further gains forecast 


The copper price is Likely to 
rising sharply during the final 
quarter of this year and into 
1995 as stocks fall towards a 
critical four weeks’ supply, 
according to London broker 
Hambros Equities UK, reports 
Reuters. 

In a special report Hambros 
forecast that stocks held by 
producers, consumers and mer- 
chants, now equivalent to 55 
weeks’ supply, would fall rap- 
idly from mid-September, as 
they did between January and 
■ July. 

Hambros analyst Mr Christo- 
pher Pearson said said copper 
prices could then reach 150 
cents a pound, compared with 
about 113 cents at present 

If the decline in London 
Metal Exchange stocks 
matched the pace of falls ear- 
lier this year, the total could 
reach 180,000 tonnes by the end 
of the year, the report said. 

“Before allowing for any 


COMMODITIES PRICES 


movement in producer and 
consumer stocks, this would 
lower tire stocks consumption 
ratio by about 05 weds supply 
to about 4.7 weeks by Decem- 
ber 3L” 

Net new production of 
400,000 tonnes next year was 
unlikely to meet rising world- 
wide consumption, it said. In 
response to synchronised eco- 
nomic recovery copper con- 
sumption growth of 65 per 
cent this year would be fol- 
lowed by a 55 per cent 
increase in 1995. 

Western world consumption 
would exceed supply in both 
1994 and 1995, leading to stocks 
falling to three weds availabil- 
ity next year. 

“Below four weds of supply, 
copper prices have tended to 
rise almost exponentially, ” 
said Harnhwa. “Therefore, we 
expect the price to spike above 
150 cents a pound during the 
first half of 1995.” 


Drought 

threatens 

Ghanaian 

aluminium 

smelter 

By Laurie Morse In Chlcaflo 

Drought conditions in Ghana 
have caused power authorities 
in the Volta Lake region to 
declare force mojeure on its 
supply contracts to the Volta 
Aluminum Company (Valeo) 
smelter, which this year was 
projected to produce 140,000 
hwma* of aluminium. 

The smelter is 90 per cant 
owned by Texashased Kaiser 
Aluminum, with the minority 
interest held by Reynolds Met- 
als. 

yirfsar ftf f jriaim are negotia- 
ting with tiie government of 
Ghana to avoid the power 
cut-oS, but at present are fac- 
ing at September 10 shutdown 
date. 

If negotiations are unsuc- 
cessful, Kaiser faces the los s of 
nearly one-third of its current 
global production. Kaiser has 
global capacity to produce 
508500 tonnes of aluminium 
annually, but has been operat- 
ing at about 77 per cent of that 
capacity, or about 390,000 
tonnes per year. 

It cut output at the Valeo 
plant by about 30 per cent this 
spring, because of the low 
water conditions. 

Mr Robert Irefan, a Kaiser 
spokesman, said the company 
was examining its options for 
replacing metal lost if Valeo 
was shut down. Those options 
included restarting idled 
potlines in the US pacific 
north-west, where low water 
haq also interrupted the supply 
of cheap hydroelectric power. 
Kaiser’s nmwitpr fn Spo- 
kane, Washington, is operating 
at only 75 per cent of its 
annual 200,000 tonne rated 
capacity. 

The Ghanaian smelter was 
last shut by drought in 1983, 
when it remained idle far two 
years. The Valeo plant employs 
about 1,600 people, most of 

whom are Ghanaian naHrainlg 
and is an important source of 
foreign exchange for Ghana. 


Gold market prospects ‘very finely balanced’ 


i$ very 


| By Richard Moomy - 

| Gold market prospects look 
I “very finely balanced”, accord: 
| tog to Gold Fields Mineral Ser- 
i vices, a London-based research 
company. 

fa an update to its Gold 1994 

report, published today, the 

company says that a good case 

can be made for suggesting 
that the metal’s price will 
break out of the recent trading 
range, “other on the upside or 
the downside”. 

The direction of the 
break-out wtH depend, it says, 
on “the Interplay between 
wealth creation, inflation, 
interest rates and finally, per- 
ceptions about gold’s funda- 
mentals”. 

fa tiie first half of ring year 
mine production continued to 
grow at an ammafiaed rate of 2 
per cent, taking account of sea- 
sonal factors, says the update. 
But net official sector supply 
chang ed dramatically. “While 
not actually reversing to a 
position of net buying, the 
level of sales [by central banks] 
dropped to only 36 tonnes 
[compared with 244 tonnes in 
the second half of last year and 
275 tonnes in the first half). 
“Instead of sales," GFMS 
wphfiw, “the activities of offi- 
cial participants have been 

largely confined to tending and 
swapping gold.” 

Meanwhile, forward selling 
by producers /vmtinnta to 


Global OoM Supply and nwiumd 


2nd hair 1 st half 
1993 1994 


Suppif 

Mfrw production 
Official sector sal 
Old gold scrap 
P oiw a rd sales 
Option hedging 
Uatnvutnwnt 


1,115 fabrication 
38 JwraHery - 

271 Bactronlca 

Cohn 
10 - Other 

199 Bar homing 
Gold loans 
Forward sales 
Option hedging 

tmoatmant 
1.582 Totel 


1st half 2nd hrif 
1993 1993 


1,389 1,142 

91 93 

35 84 

91 . .82 

109 29 

37 28 

7 

98 

184 137 

1.905 1,707 


SeutMOetiFkUtMkmaiatnkm 

decrease and, “with the contin- 
ued repayment of gold loans, 
tills has resulted in producer 
hedging contributing more 
than go tonnes to the demand 
irida of the equation”. 

.“The above changes might 
have been expected to produce 
a positive Impact an sentiment 
and price,” the update says. 
But they have , been countered 
by significant disinvestment to 
Europe and North America as 
investors, dtofllusto ned with 
the gold price’s reduced volatil- 
ity, switched their st trart irra to 
othm commodity markets. Suc- 
cessive increases in US interest 
rate also dampened interest fa 
buying gnM 

The jewellery sector’s 
demand for gold tins year has 
reflected “a mix of same very 


disparate treads”, says GFMS: 

*Hw ffn ai H nnatl impmwnwBt in 

tire Untied States; the sluggish- 
ness so far of European 
demand to respond to 

im pm u i fl ) nrrmnmte wmi ti Hmw; 

extremely weak offtake fa the 
MiMIa Rppfr; and, finally, th« 
price-elastic response (relative 
to the first half of 1993) of jew- 
ellery [demand] fa the Far 
East”. 

The net result has been a 
mnrfar y te first half rise to a 
level that remains nearly 14 
per cent below the first, half 
figure fa 1993. 

GFMS sees scope far sharp 
upturns fa European jewellery 
sector riamanri for gold, as con- 
sumer confidence improves, 

awfl In Waatom Hamawri | 

as this year’s dl price recove r y 


feeds through. 

“But is in the Far East that 
the most intractable question 
lies: namely, did this year's 
recovery in physical offtake 
represent amsumers beginning 
to adjust to the higher price 
levd, or alternatively, was it 
an »»w»p1g Of pent-QP dnmand 
following the buyers’ strike of 
the second half of last year?” 

GFMS suggests that, “with 
other firings being equal”, the 
former explanation would 


and the latter to a slowdown. 

“But of course, other things 
will not be equal,” it says, ff 
China’s monetary Is loosened 
before the economy has cooled 
sufficiently “the impact on 
confidence could easily initiate 
a new hedge-buying gold rush. 


similar to what was seen in 

“On the other hand, some of 
Hiia year's (soldi fabrication fa 
Ghina appears to have gone 
into increasing retail favoxfo- 
ries which may have to be 
worked off before a real 
improvement in offtake can 
place.” 

GFMS sees the level of 
world-wide investment or dis- 
investment as “argu- 
ably. . . the element in the 
market which will have the 
greatest impact in the Bhoirt 
term." 

“If inflation looks like 
gaining Hip upper hand over 
the effort s of centr al banka to 
keep It fa check, there could 
easily be a renewed surge in 
hedge-buying of gold,” it 
explains. 

“But again, perceptions 
about the gold market's funda- 
mentals and interest rates will 
be cr ucial in determining 
Investment strategies. A break- 
out of the price an the upside 
could galvanise investors and 
result in a self-faeDfag rally, 
whereas if the price were to 
show the same lack of move- 
ment that characterised the 
first halt a continued drift 
away from the market could be 
expected." 

Gold 1994 - Update L £100 
(US$155 outside the US) firm 
Gold Fields Mineral Services 
Ltd, Greatcoat Bouse, Fronds 
Sind, London SW1P1DH . 




Defence 

,-tocks 

jo ale* 1 


Indian cotton estimate cut I MARKET REPORrr 


India’s officially-sponsored 
Cotton Advisory Board has 
estimated the country's 1993-94 
(September/ August) crop at 
12.1m bales (170kg each), conn- 
pared with the previous year’s 
14m, according to traders, 
reports Reuters from Bombay. 

Meeting cm the eve of the 
new wmarm , the GAR did not 
give reasons for the lower crop 
but traders said. the shortfall, 
occ u r ri ng mainly fa the north- 
ern s tates of Punjab, Haryana 
and Rajasthan, was caused by 
floods and pests. 

East India Cotton Associa- 
tion president Mr CJL Mirant 
said the CAB estimates were 
tower than the 125m antici- 


pated by trade associations. 

• The world cotton produc- 
tion estimates for 1994-95 had 
been raised slightly 19.01m 
tnrnieg from an end-July figure 
of 18548m, the Liverpool-based 
industry publication Cotton 
Outlook Hrid 

The figure reflected a rise fa 
the US estimate were to LUfin 
tonnes from antwm a month 
earlier 

China’s projected output 
remained at 45m tonnes, with 
India’s and Pakistan’s 
unchanged at 2595m and L7m 
fairmaa respectively. The Aus- 
tralian crop estimate was down 
to 341500 tonnes from 386,000 
because of drought 


Profit-taking trims coffee gains 


L ondon Commodity Exchange 
COFFEE futures ppded firmer 
but off six-week highs as profit- 
taking set in following a rally 
fuelled by trade, speculative 
and roaster buying and a buIL 
ish New York market, traders 

Raid. 

The November position, 
which had rebounded from an 
early low of $8,700 to .touch 
$3540 a tonne at one stage. 
Ended the day at $3,773 a 
tmme, up just $19 ant balance. 

“It was quite a run, 
reflecting mirad buying and 
New York's rally,” explained 
nna dealer. Both selling and 


BASE METALS 

LONDON METAL EXCHANGE 

(Mow from AmatoamMad Mobil Tracflna) 

■ AUJtaNIUM. 8*-7 FURnY (5 par tonoal 


Precious Metals continued 

I OOUP CQMEX flOO TVoy otj «tmy qz.) 


GRAINS AND OIL SEEDS 

to WHEAT LCE (E par tonraj 


SOFTS 

■ COCOS USE (g/taw) 


MEAT AND LIVESTOCK 

■ UVE CATTLE CME (4ft00qb»; canMtafl 


Oow 
Previous 
MgMow 
AM Official 
KM daw 
Opan M. 


Cota Inta 

1505-6 1634-6 

1487-8 1617-6 

15035 1545/1530 

1503-35 15325-3 

1543-4 

273580 



P*a 

3885 

rtMBi 

+02 

Mffih 

<ta* 

to U M 

- 888 828 

to* 

s*e 

Nta 

10450 

S* - 

-<U6 10473 10 (9 

to« 

M 

264 

w" 

22 

top 

INI 
total i 

on 

tafa 

-13 

m 

878 

too* 

Lta M M 

883 3504 1587 

ON 

•* ta to« 

prtn tap Hp La H 

70560 -0460 71560 70500 36519 

M ’ 

8,111 

tot 

3875 

- 

3684 

3885 9519 149 

tar 

10550 

JUD 10830 10550 

2484 

68 

■ac 

101* 

-8 

1013 

1003 31 535 5516 

DM 

68576 -0475 88700 68560 16713 

4.113 

to* 

5885 

• 

- 

- 

Jra 

10755 

•040 10750 10750 

1780 

11 

tar 

1030 

-0 

1044 

1027 31731 1533 

M 

67560 -0875 68875 67500 11518 

1512 

Ora 

3805 

- 

3814 

3885 88547 18727 

tar 

10826 

-046 10845 10950 

1583 

61 

taf 

1090 

-10 

1053 

1039 11474 335 

.tor 

08575 -0225 70400 88590 75" 

788 

tta 

3045 

- 

3845 

3888 13598 215 

to 

11150 

•OSS 11140 11155 

1,102 

23 

JN 

ion 

-10 

1087 

1062 4730 338 

Are 

87580 -0323 87.405 08S2S 1JS74 

155 

¥ 

3875 

-ai 

- 

- 6587 60 

JN 

11355 

•as 11340 11140 

167 

15 

top 

1071 

-13 

1079 

1063 8784 403 

•m 

86500 -0180 67500 58750 740 

147 

TaM 




1*5576 2157* 

TNH 



U6B 

no 

TNH 




1835*1 8,147 

me 

74,98 155*4 


TaM dafiy banovar 3&04S 
■ AUMNUMAUAV ($par tom) 


■ WHEAT CBT ftOOQbu n*c c a MM H to buafta/) 


■ COCOA C8CE ftO taaiaa; SAonnaffi 


; HOPS CME (4050atM; canwtoa) 


CtOW 1536-60 1673-5 

Pmvtoua 1637-40 1560-60 

MgMaw 1678/1670 

AM Official 1550-5 1570-6 

Kart> dow 1573-83 

Opan H. 2.781 

Total daly tumtwar 568 

■ LEAD Spar tonnd 

Qow 5885405 6065-6 

ftsriOU a 093-9 eos-e 

HgMow 610005 

AM Official 6885-805 8085-7 

Karadow 008-95 

Opan M. 40260 

Total daPy tunowar 5588 

■ IffiCKW. (3 par tonna) 

Clow 6185-75 6286-60 

Pravtoua 6028-35 612000 

HUAW 6156 8350*8180 

AM Official 8160-6 6256-7 

Karadow 8300-60 

Opan InL 55506 

Total eufy turnover 14533 

■ T*a (3 par torerel 


ON 

4I5J2 

+15 

*175 

412* 17518 

2584 

top 

365/4 

+4/2 

364/2 

3580 4542 

8545 

top 

1306 

+5 

1306 

1236 246 77 

ON 

30575 

-0550 36350 36*00 12548 

2,188 

JM 

4185 

+00 

4185 

4180 4568 

258 

Dm 

379/2 

+40 

379/4 

37(6 47510 12.790 

■M 

1357 

+1 

1368 

1346 41568 9500 

DM 

39550 

-0500 40525 38300 

8547 

1563 

*pr 

4225 

+25 

4235 

4200 1531 

3 

■v 

987/0 

+3* 

367/4 

382/8 18.193 

15S 

■■r 

1400 

+6 

1410 

1388 12J50 1551 

M 

39578 

-0276 408m 3B5n 

25M 

360 

-M 

4235 

+05 

- 

- 4S 

- 

tar 

377/4 

+» 

378/4 

STM 1542 

115 

tag 

1425 

- 

1434 

148 3566 124 

ta . 

38575 

-0275 30576 38976 

1JS8 

17* 

ON 

4285 


- 

- 102 

- 

JN 

353/2 

+2fl 

354/4 

35M) 2,187 

466 

M 

1447 

- 

1447 

1447 2M> 11 

JM 

44.150 

41200 44*00 445a 

an 

78 

TaM 




2486* 

*5" 

Dm 

364/4 

+2/0 

364/4 

382/0 a 

a 

top 

1467 

- 

- 

- 1506 

Am 

43.1H +0575 44.150 43500 

40 

2 

■ PALLADIUM NYMEX (100 Tray col; Mrojr on) 

DM 




785*4 

Ml 

TaM 




70*6612573 

tm 



■5" 

Ktn 


6885-005 6065-6 

88S-S 606-5 

810*05 
6885-805 8085-7 

808-95 

40250 


top 

13255 

+155 1S256 19000 

644 

816 

Dm 

154.10 

+055 

15450 15280 

5540 

636 

Mar 

754JS 

+080 15580 15150 

590 

41 

TaM 




*ns 

15*3 

« nvERGOMEX (too Troy «4Ctata/frayaE.J 

top 

5445 

+7* 

5455 5355 

6500 11579 

ON 

5485 

+75 

- 

5 

2 

Bar 

5467 

+72 

- 

. 

- 

Daa 

aia 

+72 

5638 5425 81508 23,100 

-Ml 

5935 

+72 

3555 9468 

<2 

a 

Mar 

5582 

+7.1 

5605 8528 

0*00 

338 

TaM 



111267 345*7 


- CBT ffOOO bu anti; eanjaWBb buNiffi) ■ COCOA frCCO) gCWa/tawa) 


tW 220* +32 2210 

Bac 222* +1/0 2230 

Ita 232/2 +1A 232/4 

mr 2365 +M7 2364 

M 242/6 +1/2 2420 

Sw 2450 +1/2 2450 

TaM 

■ ffiMUVtCS « partannffi 


219/4 14,7a 15578 
221/5726522 17,000 
231A 28538 1/845 

237/2 11,465 2S7 

241/4 11,282 HJ7 

2140 887 31 

381,164 3*»8 


ENERGY 

■ CRUDE 04LMVM6X 142500 U3 gato. S/barw* 


Pwvioua 
Hpi/tow 
AM Official 
Karadow 
Opan M. 


5376-85 6456-80 

6346-50 5426-30 

54600430 

5380-5 5480-6 

5465-80 

17527 


Total <tt>y trenovar 3.488 

ffi 33NC, apodal high gratia (I par tonwa) 

Oow 0715-25 88640 

Previous 9655-65 868-00 

Hgntow 0745/874 1000003 

AM Official 0745-6 0865-7 

Karadow 894-6 

Opan InL 86,607 

Total ddly tumov+r 17,186 

■ OOPPB4, wad# A ff par tenrw) 

QOW 2489-500 2508-10 

Prewtoua 24575-85 24685-70 

MpMow 2488/2487 2521/2488 

AM Offidd 2486-9 28065-8 

Karadow 2506-0 

Opan ML 212517 

Total My feanomr 73528 

■ LME AM OflMH C/S rata: 15343 

LME Owing CM raw 15003 

8BCC15365 3Bffid534S 60BK15EQ BBMK15278 

■ MQHORADe COPPER fCOMBQ 


M 11450 +250 11350 11230 5573 3.058 

sra 11850 +250 11650 11450 LOO* 30 

dot 110.15 +250 11620 114.70 808 13 

Hav 11196 +233 11150 11100 21134 1003 

Oat 1117S +230 11180 114.10 422 2 

JH 11550 +250 11100 11100 272 

Tam 47500 1444 


PRECIOUS METALS 

■ LONDON BULLION MARKET 

(Wow atwffiad by N M ftotachfc* 

Odd (Troy at) *P*» tv**. 

Otm 3885008850 

Sparing 38050588.70 

Moraine Ibt 38126 261588 

Aflamoon ft* 385.76 291525 

DayV HgH 3805048750 

[Wi Low 3845008120 

Fista* dow 3885046670 

Leea UMMaan floM Landi ng Rstoe (MaU8S 

1 montn 451 Omorrna - — 4 

2raofi0ffi — 452 12 monta 4 

3 months — <56 


Od 1727 +132 1759 

Hav 1752 +051 1757 

Dw 1756 +058 1750 

Jm 1753 +052 1755 

NO 1777 +0.18 17.77 

iNr 1772 +6.12 1773 

TaM 

■ CRUDE OB- IPEg/bwreQ 
tatat D wfa 
Nka dap ffiA 

Oct 1647 +023 1650 

Mar 1658 +072 1171 

Dae 1666 +020 1677 

Jaa 1184 +021 1175 

tw 1661 +020 1666 

ffiv 1658 +020 1658 


1752 91300 4Q277 
1754 63588 11086 
1754 47506 8581 
1751 30(88 1815 
1758 16423 1,101 
1772 16218 1581 
383503 8L7H 


In M W 

1622 69234 16586 
1653 31 5M 8509 
1643 30513 3580 
1641 9580 829 

16*2 4,186 666 

1640 4508 421 


■ HBATWQ OB. WMBC (0500 U8 gta; oUB gffit) 


« 10615 -025 1032D 10920 101 13 

H 10(25 -056 10(26 10(25 481 20 

■ 10650 -048 10650 1067S 315 6 

•r W650 -070 « 

ay 11050 -0.15 21 

M 666 38 

6QVABEAN8 CBT {55006a Mffi eaaBffita twha) 

p 581/0 +7/2 S81A 574M 7567 1087 

M 573/6 +6/0 574/4 568/4 77423 16545 

a 58243 +M 562/4 57710 13587 1788 

■r 501/2 +6« 5B1M 58M 6858 062 

4 5B7M +60 887/4 582/4 3535 136 

4 602/4 +60 6030 586/2 7,466 327 

W 11W8 M5W 

BOVAMAN 06. CBT jBjUBQBw oanMta 
a 2458 +023 2158 2470 10542 8508 


JW 24B7 +0.17 3457 3443 1291 330 

ffiar 2450 +0.15 3(50 3453 0723 810 

tap 2(45 +a» 2445 3455 3504 270 

T4M 81586 ZL8X7 

■ 8QVABBAN 8WAL CUT flOO Iona; S/Ion) 

36p 1737 +15 1734 1715 12532 1773 

OS 1717 +15 1715 1705 13538 1QSZ 

Oac 1728 +15 1728 1718 36847 8513 

m 1717 +14 1735 1733 15*1 1503 

Mar 1788 +18 1764 1784 7817 631 

tar 1775 +1.1 1775 1785 55*1 1*7 


■ COn^g LOE (Eloraaj 

h* 3885 437 3810 37S 1190 1508 

Baa 3773 +18 3840 3700 12586 3478 

Jw 3713 +16 3780 3380 11,420 1.138 

mr 3674 +20 3730 3638 5588 175 

Mar 3948 +25 3710 367S 1478 33 

JW 3065 462 3580 3645 48 8 

TaM 36558 1880 

■ cowwp gcacBgmtaioiraM 


*ap 

ana 

-250 214JS 20850 

5SS 

254 

DM 

21025 

-2*0 22125 21025 

22549 5556 

Nar 

215J0 

-220 22380 21350 

834* 

831 

WS9 

2J48D 

-155 22480 21780 

V>49 

*a 

JN 

21650 

•2*0 221.50 22ia 

707 

285 

top 

TaM 

21825 

-250 

405 

33586 

40 

MP3 


■ COPH3S QCX3(US+3area^ounffi 

Aao-30 Mca 

Coop, (tar 18447 

15 ta a/anpa 17950 


4*78 
7282 ' 

ON 

12*8 

+058 


- 1501 


JM 

1152 

- 

. - 

“ 

510 

270 

TaM 

1258 

+054 

“ 

SO 

1581 


Opw ■ POTATOes LCE g/tonna) 


Sip 4855 +1.10 4BJ5 4656 6500 10764 

Otf 4855 +087 5010 4B99 36*63 HS54 

Bar 80J0 +057 6055 80110 1I5K 2582 

Das 5155 +152 51JS 3155 35560 2536 

Jaa 62.40 +152 6250 61.75 19536 785 

ht 6270 +152 6270 8255 8528 286 

TaM 1*3231 31504 

■ qab oa. re (Stone 


top 18225 +150 15275 16050 2B5M 3484 

Oct 15450 +150 15175 15375 21181 4.158 

tar 167.36 +150 15600 16550 12006 1526 

Dw 16650 +176 19675 15750 15568 2529 

JW 180,75 +155 1*150 15175 11JU0 UTS 

m 16L25 +MS WITS 18850 *f3B 343 

TaM 18MIS 4«K 

■ NATURAL OAS HUB POJOO MaBto: Staaflto) 


1581 -0506 1510 1-575 21381 H3S6 

1536 -0002 1540 1520 10564 1555 

2075 -1009 2088 2056 2584 2S1 

2105 -0512 2106 2100 14501 1,178 

2040 -0512 2046 2040 UB1 1742 

2000 -0504 2510 2003 85S8 583 


Baa 1505 .... 

ffiar 1065 .... 

Apr 2210 +16 275 2206 L252 

May 3400 .... 

JM 1075 - - 

WM VBA 

■ rnoailT(Bg=P0q LC£($10Andaxpolra} 


1461 

-1 

. 

. 

425 

. 

1418 

+48 

1415 

1370 

815 

96 

T425 

+41 

148 

1386 

86B 

81 

1440 

+C 

1440 

1*a 

513 

18 

1480 

+36 

. 

- 

188 

. 

1375 

108 

+25 

rare 

MO 



a 

U71 

UB 


ISM 

ffi UNUACB QASOLK 
HTMEX (42000 IB gw^oua flffil) 


1ta8V2l35B 


Slvar Ac 

pAiyat 

UScBtqii. 

top 

5156 

-005 

5156 

4090 7201 115a 

Spot 

34020 

535.75 

ON 

4856 

+021 

4076 

4820 S531 

W210 

amenta 

35355 

5415S 

lta 

4880 

+056 

48.10 

4M5 16806 

2.483 

* menta 


5*850 

Oao 

55.10 

+oa 

56.10 

5425 MW 

15« 

1 par 

37156 

56650 

Jm 

5380 

- 

• 

- VO* 

362 

QeMOetaP 

*pNM 

E ac**/. 

M 

5350 

• 

’ 

• 3861 

90 

Krugorrend 

381-30* 

250-267 

Ml 




MJP 

2MH 


Spot ang affipmant aalaa in Uuatpool 
amuntad to 280 ttnow far Via ureafc andad 
Atffiuw 28 agent 211 tamaa to 8n pravton 
wNNita rniwj opNnuffi vncnfl NW* uwNr 
towNa n nre among Mm canVad 
on Cun araon, AmarfewL Omni Aaffin and 
AuaMana^a*. 


■ WHmEBUOAHLCEp/tannd 

OCX 32370 -aw 33450 32170 8558 1708 

IMP 32050 -050 92150 32050 1785 298 

Bar 33050 - 32150 31140 5526 366 

taf aanan T?n Tn wnan 535 2D 

Pag 32170 - 32150 32020 379 30 

Oat 30550 - - - 206 

TaM 177*7 *577 

■ MJOMW^VCaCEfl 125008* qta»M 

Oct 1214 +052 1217 1200 92534 1887 
ffiar . 1216 +051 1224 1206 55584 4,192 
am 1219 4553 1218 1282 10770 637 

JN 1257 +055 1257 1152 4550 228 

Oct T152 +051 1151 1179 1582 81 

BW 11.40 -O10 1150 1150 484 

ism oLssnan 

■ COTTON NYCgpOJOOtaccanMtod 

Oct 8656 -057 7026 6650 4517 636 

Daa 0656 031 0117 0522 21417 5/50 

■Mr am -OJ6 7030 6956 14M 716 

tap 7057 -4LN 71.40 7066 4536 300 

JN 7150 450 7158 7UD 1400 92 

OH ■ *955 -060 - 415 6 

toM mjm 7jm 

m OBANOE JUtCgN1QBt19500ta; oantatoa) 

aw 8206 -155 8250 8150 £208 W0 

Nor 85*5 -156 0050 BOU 9*W 2332 

Jw 8145 -170 10025 9170 4579 006 

Mr 10273 -ATS 10250 10210 1481 181 

Nay 106*5 -150 - 865 - 

JN 10850 >AB5 10100 10650 470 1 

TaM : 20536 MU 


VOLUME DATA 

Opan. toWaat wd torn data dm tor 
qjtfiarln traded on C CM6X CBT, 

NYG&CME. CSCE and KOnida Ol are ana 
day In naan. 


INDICES 

m (Bawl ia/ate.ioq 

Aug *1 Aug 90 wanBi ago wr ago 
210L7 21045 2O0&4 1B28L4 

■ CHB WtaraN (Baw; 1987+100) 


KBaimscnewoootwowtaflbat 

42528 -1526 46560 42550 1940 1583 

42500 -1779 44773 42573 485 79 

45500 -1580 45500 4UOO 74 4 

4(800 -1579 4&7D0 441225 128 4 

42800 -1550 44500 42580 28 4 

7738 1574 


LONDON TRADED OPTIONS 

BMta prioa 5 totsre — Csta — ■— IHita 


<807%) LME 
1800 ________ 

1828 

1880 

■ OOPP PI 
(ton* A) LME 

2400 

2480 

2600 

■ COFFEE LCE 

3000 

3860 

3700 

■ COCOA LCE 
1000 __________ 

1080 _______ 

1100 ______ 


LONDON SPOT MARKETS 

■ CaUPEOtaFOBfrartwreTOcQ w- 

DuM 51&20-&24? +032 

Brent Stand (Wad S1&90001 +054 

Bm and pel) *1658051 +054 

W.TJ. (ipm eat) *17.75-7.77 +041 

■ OO Pn oo UCTO NN E prcrep t ra ta at y CIFtanwl 


Oct 

Jan 

ON 

Jan 

54 

SB 

23 

44 

40 

84 

33 

85 

29 

72 

47 

67 

ON 

Jan 

Oct 

Jan 

IS 

IS* 

14 

S3 

83 

IS 

Z7 

72 

82 

88 

47 

96 

Nov 

Jan 

No* 

Jan 

830 

479 

130 

366 

802 

456 

17S 

382 

275 

482 

202 

419 

Dae 

Mar 

Oac 

Mar 

88 

105 

56 

68 

47 

80 

83 

Si 

32 

82 

118 

123 

ON 

Not 

ON 

Nov 

08 

OB 

17 

- 

42 

78 

38 

. 

27 

55 

- 



Premum Onanfcn 

Q»oa 

Haawy FVM 08 

Naphtha 

jattuN 

■ OTTBER 

*169-100 

*153-154 

S7B78 

*159-181 

*157-188 

-in 

■ 

-2* 

+15 

+05 

Gold (par tony tat 

*38825 

-025 

Star |Mr trojrtaf 

B*XJSa 

+350. 

FtoOnwn (par troy at} 

*413.15 

+14W 

Pitamm (per troy oej 

*15120 

+0.15 

Copper (US prodj - 

1184)0. 


LmS (US prod) 

STJSe ' 


Tin (KtMa Lmpu) 

1826m 


Tto*tarYart4 

251 Sc 

+15 

CPffiv (tw waUWtO 

118270 

-02T 

Wwap ffira weKMTtO 

87J96p 

-258* 

Pfea ffw tajtaC 

7&50p 

-zer 

tAn.dwwgw*w4 

*30850 

-020 

Loo. day augar (Ma) 

yg+c n} 

+150 

Tta & 

£31200 

-■L00 

Bmy(En0.faatq 

ei07j*v 


Mata ^ No3 Yafcr) 

*1400 


WheN (US Doric North) 

e«ao 


AJtarpcfll 

flojto 



885ffi> 


R^bor KLRSSNel At/0 

31&00m 



JtaWUaf 381380985$ 

90-03 


Aug 30 A «5 

23155 23252 


233.10 217.18 


Cacore* Ol PMQ9 Soomu +iao 

PNmoa WalayJ§ $840jft* +aao 

Copra peg - *4165 

Soystowno (US) E1865u 

Coffin Outlook W Index 7138c -090 

wootop* fiU Supre) 434p '• 

C pn ttw i reW* fl ffiiraW eta pp rac Mc c cantata 
r AWta mtMreNan nMp “ WPBW. t OoL zW 
Oct. w top . V undoe RwkN. I GO nxreden. * 

Man inarttM daw 4 Bh aap (In ' prim p ■ 
Orep aa rent O taa a» hr pato re e» 


buying here were technically 
inspired, he added. 

Other HahVtp the Lon- 
don rally was. enco ur aged by 
New York breaking resistance 
at 220 cents a pound in early 
trade. But the December posi- 
tion at the US market later 
backed off to 213 cents. 

COCOA futures dosed lower 
but well off their lows after 
responding to a firmer New 
York market, dealers said. New 
York was on the upswing at 
midday amid light activity.' 

they ndrinri. 

At the close London’s 
December was down £10 at 


£1,013 a tonne after trading 
between OJOOS and 0,044. ' 

Market players were still 
awaiting fresh news of the 
Ivory. Coast's crogvtbe dealers 
sakL fa its dally report private 
US-based forecaster Weather 
Services said the Ivory Coast's 
cocoa regions needed more 
xatn as below normal shower 
activily continued fa West 
Africa. “Light showers are pro- 
vifing only some relief to dry 
conditions fa Ivorian cocoa 
regions, and some reduction fa 
crop production is likely," the 
report said. 

Compiled fr o m Banters 


' +LMTV.V.' l-. l . 


No.8,547 Set by FETTLER 


iT+11 ’ 

•rr-< 

'■ : ■ 

: ■ - 
-aivts-u-ra-: 


iittSKtl K ’ .*!•" 








. :*• 

t\5 H * 

J ® M > - 

fjf'*:* * 

;• ■’ ... - 

«•'( 

■ l: ; 

aS'A-~- 

.* ** mv „. 



C5nB8 having subsi di ary indteafan-s 
a dozen of the other (ONE} 

ACROSS 6 

1 Author, teojUy son* dwirt ng 
type SGtt& (8) 7 

5 Bachelor, having talked 8 
wildly, stood bis ground (6) 

9 Remote vizal disorder is bet- 11 
tarffi) 

16 Frightened, touching inside of 18 

fish (9) 

U Savage tribe (5) 17 

13 Gnarled pine, found fa Sooth 

American country (3) 28 

14 CM yak stampeded (© 

16 Phrase played repeatedly in SO 
Geneva (7) 

19 Frequently accepting Scot’s 21 

purpose (7) 22 

21 Ran awkwardly fa front of 24 
veteran (6) 

23 Check aid sang, back where as 
the listeners axe Q) 

20 In the manner of one 
French.... 09 

28 .... revolutionary w o rk e r in 
the river (6) 

27 Gentle as a test batsman (4-4) 

28 Bora defunct, without one 
being wanted (fi) 

29 Plays 1 re-enact a gain and 


only are six of ONE and half 

SHly creep into the welcoming 
party (9) 

Drive wflcfly{5) 

Old daggers, failures, gone fa 
crookedly (8) 

Reverse arms In good order 

(4) 

Everyone in a full house 
©A4) 

Changing one in a lot of leafy 
decoration (9) 

Food of an amefet, occaafon- 
*0y.... <3*-2) 

underdone? That’s 

mui«iiin7 (4) ... 

GB0tarhasnot<7) 

Stick, tn this place (8) 
Moderately wow, missing ana 

( 5 ) 

P oor painter, penniless (5) 
Solution 8^46 


I s ~ 

. 

****** W'dhAf, 


SSL>: 

SieS*^ 

■ 


5^v 
:v^ • 


DOWN 

1 To eat in (6) 

2 See headgear almost equal in 
value to bishop's cap (9) 

3 Poet fa the mood is terrific ( 5 ) 

4 Chypre? A concoction from 
oM Greek province CO - 


□□Baas mannaBaD 
a u s □ a o q 
taaaano □□□nnnHQ 

□□aaaaQQ ancioaD 

□ aisaDanD 

□aan aaaooQH 

□ □□Liaanu 

aBauana eqqu 
QBCIDE3QDQ 
□□□□□□ □□□□Hiiau 

□naanmo □aaiiicii 
a a a a □ a d 
HQQGIQ0OB ODOBBIi 


If- 

&S. 





'x, - • 

' >• 
c . . 

ife*.' ■■■•. 


v-‘. 

%^-V 


Nw Soxarelgn 









‘ ' '■ \ 


a, K\'(] 


FINANCIAL TIMbs THURSDAY SEPTEMBER I 1994 


MARKET REPORT 


LONDON STOCK EXCHANGE 


Recovery halted as inflation worries resurface 


By Terry Bylancf, 

UK Stock Market Editor 

t0 recover from the 
profit-taking of the previous session 
was abandoned yesterday after the * 
latest data on the US economy 
raised the spectre of inflationary 

u once again, it was 
tne CJK blue chips which looked 
uncertain. The broader market h e l d 
steady and strength In bufldin* 
shares reflected underlying confl- 
dence in the progress of economic 
recovery. 

At best, the FT-SE lttkshare Twtoy 
was more than 15 points up. 'Hie 
rises in French bank rates 
announced after London had dosed 
on Tuesday were dismissed as 
purely technical moves, with no 
serious implications for today's 
meeting at the Bundesbank, where ' 


most analysts believe German rates 
will be left unchanged. A modest 
fall in the UK Pur chasing Managers 
Index encouraged hopes for non* 
inflationary growth, althou gh this 
index is not yet taken too seriously 
by the stock market. 

However, gains were quickly 
whittled away when London ranght 
the hint that the New York markets 
would react negatively to the July 
US leading economic indicators, 
which showed a rise in material 
prices, known to be a sensitive area 
at the Federal Reserve; the Chicago 
Purchasing Managers report 
seemed to indicate similar trends. 
Some commentators revived the 
word "stagflation** coined 20 years 
ago to describe the combination of 
rising prices and slowing economic 
growth. 

The FT-SE 100 index ran back 


almost to its overnight level as the 
big trading houses sought to 
reverse their trading positions in a 
hurry. However, a late rally left the 
index at a final reading of 3J25L3 for 
a gain of 1.7 points on the day. 
Trading volume increased in the 
second half of the session as arbit- 
raging was reported between stock 
index futures and underlying equi- 
ties. But the FT-SE Mid 250 India, 
incorporating a wider range of sec- 
ond line stocks, remained firm, clos- 
ing 2.8 higher at 3,816.6. Several 
trading programmes were reported, 
anH these increase d the pressures 
from the stock index futures sector. 

Seaq-reported trading volume erf 
647.9m shares was nearly 8 per cent 
above Tuesday's figure, which in 
turn reflected £1.22 bn in retail 
worth and confirm prf the return to 
higher levels of investment activity 


since the most recent upswing in 
the stock market 

A market highlight in terms of 
share price movement, althoug h not 
in trading volume, came in the 
defence sector, which responded to 
the ttObn merger of Lockheed Cor- 
poration and Martin Marietta in the 
US. Shares In both British Aero- 
space and GEC rose smartly as the 
stock market revived past hints 
that GEC might seek closer links 
with, or bid for, Aerospace. By the 
dose, GEC shares had given back 
the gain but Aerospace remained in 
demand. On balance, however, the 
stock market did not sound con- 
vinced of Its own hopes fix an early 
hid. 

Interest rate-related stocks, 
including most of the store and 
retail issues, made a good recovery 
from the bout of profit-taking 


endured in the previous session, 
al though Kingfisher, high street 
trader, suffered from the implica- 
tions for Darty, its French retailer, 
of die rises in bank interest rates in 
that country. 

Traders said that the underlying 
tone of the stock market had 
remained very firm yesterday. The 
economic data from the US pro- 
vided a somewhat discouraging cur- 
tain-raiser for the more si gnificant 
statistics on US unemployment and 
payrolls due on Friday, which are 
likely to set the pact for world mar- 
kets next week. 

Tbday will bring both the meeting 
of the Bundesbank policy council 
and also the wider ranging US pur- 
chasing managers survey. Either 
could have significant effect on 
near-term views on the equity mar- 
ket outlook. 


FT-SE-A AH-Sham index 

1,650 

1825 

. 1 , 600 - 

1876 — 

•/-- 

i/so — .. — 

1,485 s * — ■ 

■Jun JU I 

6 owca:FTQapMft - 1994 

■ Kay Indicators 


Equity Shares Traded 

Turnover by voiuna {mffllon). ExcfcxSng: 
Wra-market business and overseas ttmow 
1.000 --- 



buflees and ratios 

FT-SE 100 

FT-SE Md 250 

FT-SE-A 350 

FT-SE-A AD -Share 
FT-SE- A Afi-Share yftad 

3251.3 

3816.6 

1640.7 
1626.64 

3.67 

+1.7 

+2.8 

+1.0 

+1.07 

(3.67) 

FT Ordinary index 
FT-SE-A Non Fins p/a 
FT-SE lOOFut Sep 

10 yr GBt yield 

Long giltfeqiity yW ratio: 

2535.0 
20.14 

3263.0 
aeo 

2.36 

-4.9 
(20.16} 
0 JO 
(8.60) 
(226) 

Best performing sectors 

... +2.0 

Worst peffonnlng sectors 


2 Banks .. ._. 


+1.4 

2 Water 


-1.0 



.... +1.3 




4 Merchant Banka 


- . +1.1 



-OA 

S Ufa Assumes 


+1.0 

5 Retailors, Food 


-Q.7 


-- j 


w sjains 


#ORD 


h 


r" 

1 II 




■ 11 

n: 

m ■ * 


* 

I*f 


stocks 
on alert 

Defence and industrial giant 
British Aerospace advanced 
sharply as speculation that it 
Is to merge with defence elec- 
tronics group GEC returned to 
the market 

The talk was fuelled by this 
week's $KHm merger between 
Lockheed and Martin Marietta, 
and shares in BAe closed 20 
ahead at 504p, having touched 
508p earlier in the day, to make 


it the best performing stock 
among FT-SE 100 constituents. 
However, turnover at 2.6m was 
modest and several analysts 
suggested that a merger was 
unlikely in the near term. 
Trade in GEC was also light 
totalling a mere 1.3m. The 
shares held at 308p. 

One market watcher «**«*- “I 
find today's move in BAe sur- 
prising; after all, the new 
merged group in the US is 
likely to provide stiff comp- 
etition." 

Some dealers put the day's 
rise down to straightforward 
catching up following recent 
nnderperformance. Others 
pointed to some switching 
from Roils -Boyce into BAe. 


There were also bargain hunt- 
ers ahead (rf next week’s Fam- 
bo rough Air Show. 

Coats Viyalla upset 

SeD advice from one of its 
joint brokers just before 
interim figures due next week 
hit the share price of Coats 
Viyella, the UK’s leading tex- 
tile group. 

The stock foil quite sharply 
in early trading as BZW recom- 
mended that clfentq take prof- 
its following a good run in the 
shares. It remained weak and 
closed 10 off at 229p with turn- 
over reaching a£m. 

Ms Julia Blake, textile ana- 
lyst with the UK investment 


EQUITY FUTURES AND OPTIONS TRADING 


Worries over inflation following 
the release of US economic 
data checked an advance in 
stock index futures, although 
dealers reported a positive 


tone to the sector, writes Joel 
Kibazo. 

A firm opening to trading in 
the September futures contract 
on the FT-SE 100 at 3,260 


■ FT-SE 100 Moex FUTURES (LUTE) C2S par tuk tadax potat 



Open 

Sell price 

Change 

Hgh 

Low Eat. vta 

Open taL 

Sep 

32600 

3263-0 

. 

3284.0 

3254.0 

10145 

52290 

Dec 

3272.0 

3277i 

05 

32B2A 

32720 

1078 

8791 

MV 

- 

3299.0 

- 

- 

- 

0 

0 

■ FT-SE MD 260 INDEX FUTUHE3 JJFFQ £10 per fid Index paM 



Sep 

38050 

3805.0 

-ion 

3805.0 

3806.0 

200 

4271 

Dec 

3826.0 

3828,0 

-IOlO 

38200 

3826.0 

200 

120 

■ FT-SE MD 2SO WDEX HJTURES (DMLX) OO per Ml tadex poM 



Sap 

- 

3815.0 

- 

- 

. 

- 

836 


taopei teasel (gw one Mr pnvtoua day. f Exact votoraa ahoum. 


■ FT-8E 100 taOEX OPTIOM (UFFE) C3ZS1) CIO per ftifl Index point 


31 DO 31 GO 3200 3250 830 0 3350 3400 3450 

cpcpcpcpcpcpcpcp 
S op 187 3*2 ia>2 6 hn> 2 l 5 h 46 32 1 ft U 6*2 100*2 lit 19 1 SO 

Oct 180 20*2 141 31 ICh 46 78*2 87 S 3 B 3 h 91 125 28 b IBS 12 206 

No* 281 33*2 188 47 131 83 182 83*2 78 * 2106*2 65 138 % 38 173 28 212 

Dee 222 ^ 481 , MS 81 % 183 * 2 78 % MS*, 99*2 8 fe 122 fe 75 151 ft 98 184 « 221 

Jant 387 100 347 * 2 1381 j 101 * 2182*2 147*2 238 

CM» *906 fate 10591 — 

■ EURO STYLE FT-SE 100 MDBC OPTION (UFFE) CIO per Ml Mac point 


to 

tao a i4fl7 4*a 

9 B>? 

11 60 a 29 b 411 + 11 >+ 73 *» Sh 

115 1 162*2 

Od 

2 B 3 18 h 182 27 

t 2 S 

39 h 92 9 Bla G 4 la 7 JPa 

43 IO 6 I 2 27 

140 15 * 2 178*2 

Nw 

vnh 38 


T 13 681 a 

63 1171 a 

38*2 184 

Dec 

2 K 52 


13612 85 

85 131*2 

48*2 194 

Mart 

250 81 



139 1 S 4 

98*2 221 


Crib 148 Mt HI ’ Umfatyte Mo tea. totem 4M 
f Uoo tted «*y mAb. 

■ Eueosmafr-SEiaDagoPipextyiiow 
9500 3SB0 9800 3850 


I tip per M Index potat 


Cte 0 M> 0 Satoaa* taraa an* rekanaa an I 


3700 3780 3800 38S0 

HB 26 73 431* 47V 681* 

*u«n. 


FT - SE Actuaries Share Indices 


encouraged early buying, 
especially from independent, 
or local, traders. Sporadic 
demand was also seen from 
some of the leading institutions 
in the first half. The contract 
moved steadily forward and 
reached a peak for the session 
of 3,284 in the tats morning. 

At this stage the contract 
was showing a healthy 
premium to the underlying 
cash market and dealers used 
the opportunity to arbitrage 
between the two markets. 

Following a bout of inactivity 
over the lunchtime period, the 
contract slipped back after the 
release of a clutch of US 
economic indicators, which 
brought back some fears on 
inflation. 

September closed at 3,263, 
unchanged on the day but at a 
13-point premium to cash on 
turnover of 10,145 lots. 

Good activity in the FT-SE 
100 option boosted volume in 
the traded options. Total 
turnover at the dose stood at 
31,697 lots, of which 18,709 
were dealt in the FT-SE 100 
option and 1,525 in the Euro 
FT-SE option. 

PHkington was the busiest 
stock option with 1,250 
contract s transacted. 


The UK Series 


Day's Year Dtv. Earn. WE Xd ail Total 

1 31 chgatt Aug 30 Aug 28 Aug 25 mo yMMytaMWrato ytd RoCun 


FT-SE WO 3851 

FT-SE Md 28Q 3816 

FT-SE MM 280 ax Imr Trust* 9820 

FT-SE-A 3G0 1840 

FT-SE StnaKSap 19085 

FT-SE SroBCte ax bw tost* 18(7011 

FT-SE-A ALL-SHARE 1828.8 

■ FT-SE Actuaries AH-Sharv 


♦0.1 32406 3266.1 32342 3065.1 357 8.72 

♦0.1 381 L8 3807 JO 3799.4 3485.7 324 6l4S 

+0.1 38175 3810.7 9791.7 9511.1 358 SJO 

+0.1 1899.7 1845.1 18315 1544.4 3.72 S.42 

+0.2 190631 180258 199027 177828 226 4.15 

♦0.1 186729 188821 188227 17742S 3.15 420 

+0.1 182527 183023 1817.45 1530.08 267 828 


Day’s Year Dlv. Earn 

Aug 31 c hgaM Aug 30 Aug 28 Aug 25 ago yield* yjag* 

10 MMERAL eXTRACT10N(18J 277321 +02278212 275421 2735.14235120 227 810 2421 64.71 110828 

12 Extractive MustriaaM 401221 +02 400225 397807 383821 344280 216 802 2425 5424 109421 

IB (XMhoMOI 272720 +03 272028 270821 268826 2258.60 237 849 2228 5828 111028 

16 08 ggSatoTa Prodflll 185254 -85 196327 197021 185221 195420 228 12S 8020f 2034 1119LS2 

20 Q£N MANUFACTURERSG64) 205815 -02205858206884 2051.15182270 3.88 427 2877 61.78 104229 

21 Bukfina & CanSbuCBonpd 1204.85 +2.0 1180.66 VtTI. 68 116205 11 4TX0 321 420 2831 21X7 83860 

22 BuMhg Motto A Morcf»s(31) 20 2873 +02 201 125 2008SB 1987.47 1732.10 3.63 328 3124 4878 95038 

23 awrteabCZ) 262427 252838 253848 251844 Z>7£20 328 4.03 3128 7227 1117.18 

24 rvirnrilflncllnrti irilrinttflfll 2049.18 -0.8 2068SS 208327 2067.14 2023.50 4X3 428 2868 8426 104871 

25 Bsctrarac 4 Beta EquWSS) 204820 204925 205821 204125 217880 3.65 8.14 1842 5809 100894 

26 EnomoerinatTO) 181123 -03 1917.17 1927.47 1824X0 1684.90 828 421 26.79 3958 108856 

M MneetoT VbMCtefia 2391.76 -04 240122 240873 239867190720 428 2X3 5860 5423 115845 

nMttuhM&WQ 291225 -08 293072 283805 2918X0 26289D 220 804 2327 8321 113887 

M TtaSte A Aa/mVOl 1 792.21 -1.6 175048175816173890188080 324 812 1888 40X9 98883 

290810 290870 293812 288853 284850 421 828 1883 8329 994.70 

M 238228 +022382.14238822236124211620 328- 721 1658 8023 1007.10 

32 State. Wtaes & OderaflCO 3031X9 +OX 302060 304821 301S2S 304420 865 835 1824 8922 101823 

M F^ManutatowsCffl 241425 .--241306 243238 239885 2387.10 897 732 1526 71.03 101338 

34 284857 +07 2827.86 282253 280724 248420 332 627 17.11 5220 04325 

as 1727. 12 +04 1720X7 171857 171828 178820 229 3.15 44X4 3320 99720 

12) 321372 -12 324885326621324023308880 320 877 17.11 7006 100836 

_« 370728 +12 3881.B4 374882 389529 404880 S25 927 1128 21727 84882 

203348 -02 203728 204722 203831 184420 304 522 3838 41.00 90429 

11 2757.01 +81 276316 27B427 275120 283020 328 8X2 1838 82X0 9512S 

1; 213135 -ax 2139.07 215346213727 1997.70 344 425 2527 4844 104920 

TT 2992.13 -08300811 302328 300BJ02 255120 328 805 2803 6808 103724 

1889.46 -07 188224 1900.73 1885.44 1982.70 343 853 1420 45.10 111524 

« 175328 -011758001758901757.48185870 226 812 2027 3352 83313 

m 1577.91 +1.11561.10158358158526186870 360 528 19.70 2812 965.72 

H 241811 -02 242004 243022 241823 229120 347 522 2318 4226 84129 

Si cS- * hmhnnnlT 132126 132929 130828 131800 383 811 BftOOt 21X8 113122 

— 2 t£ 2 .is -02 266012 257340 254322 2331.00 411 725 less 73.42 oa8»4 

« 2747.38 -02 2754.74 2734.04 289810 1M7.40 324 828 1334 8348 114353 

£ 201058 -02 201828 20S328 204331 218920 526 t t 88.79 91886 

w Q* > OBtrttuAtotyi _ 211067 *al 210880 211720 210O» 213450 391 7X6 1832 6022 9004)3 

TajmnmncMtaioM OT1L71 -U 20 3335 204053 1997^8 187870 4S3 11.79 026 8835 100SJ4 

178 4.56 -01176864 1772X01780091664.48 883 897 20.14 43L68 124303 

» c-^yeuunM 224807 +1.0 2225J3 2229-55 220SX2 2164.00 43 882 13.02 7438 88886 

? 287361 +1.4 2834X0 289381 260078283840 4.18 &3S 132010387 86892 

il 2?“™.- 1284.17 401 128377 129328 1SB7J7 148810 896 1354 883 47.80 87882 

tn * lf ? nC a(17) -^ 254891 +1 j9 2521X6 2527.17 247882 262850 4S9 7,14 17.20 8334 867.78 

« 318031 +1.1 3144,48313833312370311880 317 1040 11.20 78X2 956.71 

K MarshWil BOMOW . „ ^ 1S89 S3 1977 . 78 196005 1836.10 363 1X1 15.12 4&38 106381 

77 ““T, 166308 +0 71550631683701688801677.10 388 398 31 30. 37.49 891,12 

. M, . 1,77 57.1? 387a 

an rr.£C Jl An. JlfUWW-i +01 1625^7 1830J3 1517X5 issare 367 026 1399 41X7 127481 

■ Hourly movements 

are iQuoo li re iloo isoo wn mloo imp m^vd«y Lowtfay 

— — isaa 3260.8 32895 32832 3281.7 3281^ 32822 32536 32505 326*3 3947.8 

FT-SE 100 3*190 38215 38231 38237 38239 38210 38135 38238 3811J 

FT-SE MU 250 l64J ^ 1845.8 1645.4 16454 16464 16440 16406 1843S 16938 

KT-SE-A tw.s ip+v-s 

■ FT-SE Actuaries 350 ln*fc«tfy baskets 

m rw- ^ la00 U M 1300 1300 1300 1&0Q 1310 Ctoa* Wnfaoa Change 

’Z^a.7 1154.4 I15R4 1164.4 1187.0 11834 11860 11630 1167.1 1138X +237 

eidg 3 Crvtrcn 11»* :£?„ 3227a 3217-0 3221.3 32130 3204^ 31830 31638 3221.B -330 

Wvwnawuacte 3®JA 20201 20206 «P0l5 20133 20137 20131 2011 A 20330 -21.1 

Water 20138 29030 2S055 29105 29135 29034 2909.6 28634 +402 

208S-® ■.oW’V 

^ eywwf to pub*jli«d H I t s. Urt» of owUmwi w II d ^jU feOTfUaFteidBlTtam 

FT-8E WO. ■» FT« MO 260. Fire AmteaO Md B» FT*E Atmtrn «u*y 
MM3 « c*uwrt W *■ *» l» MW «* AHwrta* U niuy cfAeuripa undw a unfed Ml U smnd nta. 


1747 8365 1224.77 
2304 8315 141307 
2052 8379 1414.00 
1344 42 re 126420 
3091 37-56 147389 
2a37 3356 144384 
1399 4147 127441 

WE XdadL Total 
ratio ytd Raturo 

2441 64.71 110328 
2445 5444 109441 
2248 8949 111046 
8040f 2044 111942 
2377 61.78 104249 
2331 21X7 93380 
31.54 4378 95038 
3148 7257 1117.18 
2368 64.66 104371 
1342 55.09 100394 
26.79 394B 108338 
5366 6443 1150X5 
2327 8341 113947 
1949 40X9 88946 
1643 8329 094.70 
1646 8043 1067.10 
1324 8942 101323 
1546 71.03 101248 
17.11 G240 9434S 
44X4 3340 99740 

17.11 7006 100946 
1148 21747 84S.B2 
2038 41.00 99449 
1338 82X0 95145 
2547 4344 104300 
2303 6308 103744 
1440 45.10 111644 
2047 3352 83313 
19.70 2312 965.72 
2318 4246 84149 

BftOOt 21X6 113142 
1646 7342 08394 
1334 6348 114243 
* 6379 91386 
1332 8022 90043 
326 6335 100544 
20,14 4348 124248 

1342 7448 68386 
122010247 86932 
843 47.80 87302 
1740 8544 867.78 
1140 78X2 95371 

15.12 4648 106381 
3142 37.49 891,12 
57.17 4312 96743 
1398 4147 127441 


hanir, gaid the rationale was 
quite simply that: “The shares 
were on too much of a pre- 
mium to the sector and looked 
vulnerable. We bad the stock 
on a trading buy at 200p, and 
240p was quite a good level to 
take profits." 

However, there was some 
confusion as the negative 
advice came the day before an 
expected 70-page BZW review 
of the sector and five days 
ahead of interim figures which 
are expected to begin a lumpy 
reporting period. Textile prof- 
its have been badly affected by 
Continental competition and 
the inability to raise prices of 
goods leaving the factory gate 
at a time when raw material 


TRADING VOLUME 


ASQAGraopt 
Abbey Nrionstt 
AlMtFUw 
MtoKioait 


Assoc. So. Foodst 

Assoc. BriL Ports 

BA*t 

BATtncHt 

SET 

sec 

BOCf ■ 


OTt 

BT (P/PaW) 

BTRf 

a9*afS00*B«it 

BMCrdet 


EHMiMmrf 

»«shO«t 


an* 

anraftCutidt 

Burton 

CoHsAWkot 


Catoi Comms.t 

Oosavvetof 

ComoLUntont 

Coefcace 

ClMWAst 


MUdMQKI. 

EngOi+wOsym 

EoMrprtseOTt 

annum iMh 

FM 

R*cco 

Fue^lACotlT. 

300. Accident! 

QsnsnlBocLT 

Gteart 

OyoMd 

Onnodat 

a*>d«et.t 


H3aC(7Bp* *tt 

If loUUJttJOl'J 

Maaont 


saw 

LatSsokSf 
Ladd 8ocut)«rf 
lapolB 

laedftOananfr 

S 0 » 


IflOD 386 

iBi aw 
383 tasiz 
SM 151 
821 U6»* 
581 2+0 

1,100 585 

3000 108 

2.700 6M 
80 KO 
1X00 500 

3800 M5 

1x00 aa 
axoo im 

1.100 890 

1X00 488 

4.100 70 

1.100 302 

8X00 255*1 
1200 184 

1X00 SCO 
1X00 182 

2C 337 
1X00 838 

839 479 

677 

1.100 53B 


UMd+aartcr 2 xoo ses a 

um MO 70S 163>2 -1«j 

LanduiBecL 861 752 +8 

UMla &000 1+2 teh 

taw 99* 200 

5CPCt 454 470 +7 

MS 1,400 150 -alj 

M — mb . 318 SB S 

Mata S Smrnt 300 432 +7 

UdmBKt. 108 838 -2 

MartanCMn) 182 14* 4 

WCt 1X00 177 -1 

IM ItalBtat 1200 487 

MMtata fta sa t 1X00 518 *2 

Nad 99 260 

Natl Mat MOat 1X00 592 -8 

NsftsnBia 943 864 -4 

W aA — I RMdst 3.700 217 

Mow* 063 843 -7 

Pwnqrtt 3.700 862 +1 

P&Ot 456 888 M 

P*Wor MOO 127 

Po+ertUnt 1J00 5B6 -2 

fWpH 0300 338 *sh 

MCt SB 937 VLS 

RlZt ZZOO 883 +3 

Rsc* 1.100 280 +3 

ntaOrat , «23 h -Hi 

fteddB «Colriwrt 483 8 G 2 

RwSznrff 1200 582 +14 

Resd kAt 2X00 7B5 -10 

BoritnUt 1X00 222 *6 

Bl i w f 2.400 511 -3 

RotoHncat 4^00 188 -10 

R>4 acScooindt 1X00 428 +10 

RcmM tasunnesf 1X00 296 

ntaabuyt 1X00 +J2 «3 

saradn 86 isoa +« 

Scadeh & MostT 688 S36 +4 

Sect. Hydro-Bad 1X00 418 -7 

9cc*B*h Ptp+ert 3X00 427 -8 

S«art 11X00 121 ^ *2 

Sackjmt 749 191 A 

SssMsrd 506 451 -1 


rfcaJWLt 

Ssr 


C— a m TtaKf 

Slabr 

SrtO Baeetam ua-t 


2.700 730 

1 x 00 sn 

1X00 261 

904 SIS 4 

607 1581; , 

*«C * » -1C 


O Ita Iniaritaim —rt,, on* »omn nwta of “™»JL "" 

fTS£*and *Fona»- aw P/C am QimarBiai Wan 


SnPO Oeaetam uat 3X00 411 -10 

So«a Mb. 414 «S -8 

Cie u Haa B+At ‘ 3f3 to n 

SaanvwaaBKL HO 63B -10 

SooBlWMtMMa 488 STS 46 

SeusiWwtBao. 88 823 

Bai»tan VAtar 824 817 -11 

8andaif Chaid.t 1J00 254 +1 

SKntnaa 929 221 

SuiAAanf 1 X 00 34c -1 

TIN 103 238 -4 

TIOwot 832 SK -4 

138t 7X00 222 4&fj 

TanSK 8X00 IflOb <3*2 

IWa&lXa 347 440 -1 

TWWWtadraa 1X00 MS <2 

Texet 4X00 250 -1 

IhanaaVMart i£O0 5*9 -4 

HwBIt 1.100 IDS A 

Toratkot 8X00 248 

Tntasahass 4X00 91 

LMgaw 190 380 

iHauat 1JD0 1149 *3 

Uted BbdAsf 2.100 SB -9 

UhLNa-apapaa 132 533 -16 

WdataMf 6 X 00 Ah 

VWrtUStSGft 308 778 -2 

Wat+rn a f 1X00 719 A 

WMiW ta 430 714 -2 

WMsacWMar 83 BE8 -a 

TAAbraadt 977 581 +4 

WBWHBsit 1X00 355 -8 

WBaGOooan 904 152 -1 

H&rwr, 1200 189 <6 

WfaWarf 200 821 +7 

YMtaotaSaa. 1X00 70* +2 

Yotatt* Water 7«G SH -10 

2anae«t 888 839 A 

Baaad oi ttaAig vekena tor a adaote of macr 

•MH9IM OhA asagff) 8a 8EAQ syMara 
yaataday una 4X0pA Dadm ol one mOon or 
mora aa nmdal dam t Meata* an FT-6E 
ICO hriaa cuaMum 


costs are creeping op. 

William Baird, which 
reports on September 7, was 
flat at 234p, while Courts olds 
Textiles, with figures on Sep- 
tember is, eased 3 to 4B4p. 

NIE in demand 

While the rest of the electric- 
ity sector paused for breath 
after the startling post- 
djstribu tton review, shares in 
Northern Ireland Electricity 
(NIE) up to match their 
all-time high as the market 
responded to news that the 
IRA Had xprintw? a cessation of 
violence in the province from 
midnight yesterday. 

Analysts focused on the 
potential benefits to NIE from 
the ceasefire, which include a 
substantial saving on the cost 
of intensive security at its 
installations in the province 
and expected closer ties with 
the Republic of Ireland. 

Analy sts es timated that the 
savings an security costs could 
come out at £0fon and pointed 
to the good oppor t unities for 
NIE to export electricity to the 
Republic, which suffers from 
supply shortages. Other bull 
points for NIE included 
increased US investment in 
Northern Ireland which, if 
involving Investment in manu- 
facturing, would flow into 
NBS’s core frump market. 

Hoare Govett, the stockbro- 
ker, and a long-time bull of 
NIE, forecast that NIE’s cur- 
rent 3 per cent yield discount 
would go out to 10 to 15 per 
cent and said positive senti- 
ment would drive the NIE 
share price. The broker’s fair 


NEW HIGHS AND 
LOWS TOR 1994 

NEW MOHS (794 

BREWBRKSfl) Maraton Thompacn. BUM 
MAILS A MCHT8 10 OmSor, CHB0CMA (1) 
We taw* c *m a Hfafc. msiwaUTD O i (l) 
P wanmar , ELBGIHKTPr S) ELEGTHNC I 
ELECT EQURM U7L hstra, NatdaPit, HacaL 
Itt. nwnilBI 1111*0 W DenMtA taa*N. 
e*parn tn, HBnpaon tnau Mansanaa* 
Brnroai 8M*kig loda. BCTRACTIVE MD8 088 
POOD MANUF (8 HEALTH CARS (1) MdMld 
A-et*. HOUSBKICD OOOOS P) BMdt JPJ. 
Oebowa 3 Uaa. WMtata* Wadjaoo*. 
SWOIMBIT TRUSTS til) nWCSTMENT 
comviwbs n Lsaune « hotels (a 
MEDIA CQ MBKHAMT BAMCS CSSdaadm. 
Do WV, OB. EXPtORATlOW A PROD CQ Ann 
Dn gy, SooK Re U orf. OR. HIBHUTSD (2) 
BumXi CwaroL OcrirtortM Pa*a. OTHER 
HHAHCML. CQ EFT, toramoni CB. 
PHARMACEUTICALS (1) Scota. PRTNOl 
paper « packs n mamma, food n 

A8DA. M A W. SUPPORT 8BTVS (0 ManpOMT 
loc. Pmtty. TWJCOAMIWCATIOHB 66 
Steotti.Oswv.nxmBiiimuan 
OanHret, VVanaun, TRAN8PORT fO Ugtaid 
Wt. RWIBI « Cbaalgr, 8eu8i SbAl. 
AimCANB m SOUTH AnKAM3 fl). 

NEW LOWS CB*. 

OB.TS IQ BANKS A BUROMO S CNSTRN 06 
PRNMMg. TBMy Oopgte. EN UA71X A 
MCHT8 89 NoaBBa, Ttat, BM8MSHNO P| 
ARi A Ucy. Beetartsm, Weftnaa EXTRACTIVE 
MS m *AUH OWE tl) Hacan, 
HOURSRXD OOODS (Q JafBA WyaSoU. 
■ W U n A W C S tD74p*nm H. BWBSTMBW 
TTRJ9TS K) MBWHANT BAMCS (0 MMtat 
OTHER FMAMOAL 86 OSHBI 88TWS R 
BURNS 88 BML BMAttk, fSMWaaa 
PHARMACEUTICALS |1) PRTNO, PAPBI R 
PACMO tQ Hoks. PKOPERTY 86 Ml- Ind 
6pc On. BdL. CtaMiiWiA SUPPORT 8ER9S 86 
Cam Canatflhg, B3-W 8««. Sya. B, 
TEX1IXB A APPARB. fl) Lamcm. 
T TlA NBPO tT T fl) CANAP1AW8 ft). 

value estimate for NIE is 450p. 
The stock ended 21 dearer at 
41%), having touched 421p. 

Internationally traded stocks 
with a heavy US presence 
came under pressure as a 
result of a weak Wall Street 
SmithTntnp Ree chum attracted 
profit-taking following the ear- 
lier boost from its acquisition 
of Sterling Health. There was 
also talk that one small US 


broker was taking a negative 
view of the stock but dealers 
who arbitrage between the US 
and London said the main sell- 
ing came from the UK. The 
“A” shares fell 9% to 455p and 
the Units slipped 10 to S21p. 

Zeneca moved back 6 to 839p 
in spite of getting marketing 
approval in Italy for one of its 
products and filing in the UK 
for approval to sell a cancer 
treatment. 

Elsewhere, Reed Interna- 
tional retreated 10 to 795p as it 
announced its plans to take a 
big stake in computer maga- 
zine group Ziff Communica- 
tions. 

Banks performed strongly, 
with the two Scottish banks 
the sector’s outstanding stocks. 
Royal Bank of Scotland was 10 
higher at 426p after further 
aggressive institutional 
demand and Rank of Scotland 
8 stronger at 208p. 

TSB was the most heavily 
traded bank stock, with the 
market bracing itself for a big 
buy recommendation. The 
shares climbed 5Vi to a two- 
month high of 222p. 

Schraders raced up 48 to a 
record 1508p ahead of interims 
due tomorrow. 

Provident Financial was up 
18 at 541p in the wake of excel- 
lent half-year numbers. 

The day’s biggest d ecline in 
the Footsie stocks was in aero- 
engines group Rolls-Royce as 
several brokers took profits 
ahead of today's interim fig- 
ures. The shares fell 10 to 188p 
in trade of 4£m, with BZW and 
Credit Lyonnais Turing among 
the leading sellers. 

Sentiment was farther damp- 


ened by vague talk in some 
quarters that the group would 
announce provisions for the 
benefit of its power division. 

High street retailer Body 
Shop bounced 11 to 2I6p, with 
Robert Fleming said to have 
turned positive. 

Kingfisher fell 15 to 539p in 
reaction to the decision by 
leading French banks to raise 
their interest rates. The move 
was expected to hit the group’s 
French subsidiary Darty. 

Food retailer Argyll shed 12 
to 295p after James Capel 
advised investors to sell. 

Brewer Bass gained 10 at 
best before closing 6 ahead at 
593p. James Capel and UBS 
were both cited as recommend- 
ing the shares. 

The two building sectors 
included a welter of strong per- 
formers. In the housebuilders, 
Persimmon advanced 10 to 
262p after better than expected 
interims. 

James Capel was said to 
have been the driving force 
behind strong performances of 
Bine Circle, 12 higher at 322p, 
and Redland, 14 firmer at 562p. 
BZW was responsible for lifting 
PiBongton 2/j to 197p. 

Aran Energy, one of the 
smaller oil exploration stocks, 
attracted some aggre ssiv e buy- 
ing amid rumours of drilling 
success west of the Shetlands. 
The stock moved forward 1% to 
39Kp. 

MARKET REPORTERS: 

Peter John, 

Steve Thompson, 

Joel IGbazo. 

■ Other statistics. Page 45 


LONDON EQUITIES 


L1FFE EQUITY OPTIONS 


Cat* Pl*a 

OpOofl Oct J»t Apr Oct Ji Apr 

n taWjom 589 ASH - - 6 * - - 

{* 826 ) 838 18 H - - 26 - . 

*00 2 B 0 24 B 3 BH 7 * 14 M 18 M 

rZM) 300 11 17 2 BW 1 B» 24 » 2 S» 
ASM 00 S Till 1214 2 3 M 5 
(■ 67 ) 70 JH 8 7 6 * 8 10 

MMTHU 380 m 47 67% 8 14 19 
«2Q It 30«1M17K 27 33 
SriOBdnA 420 44 S3 0BK 6K 13M IM 
r«3 ) 460 16H B 37H 22H 31 37M 

Bats 650 31 4ZK 96ft 111* 21H 2B» 
rS67 ) 600 WH n 33 38M 49 65H 

BP 390 34H 43 4M6 S* T2M T6H 

("414 1 420 « 25* 33H 17*25)4 30)4 

UkbSM 180 1614* 16 8* 10* 13 
PI*) 180 3 8* 11 20* 22* 25 

Bta SSO Si 74 80% B 17 28 
CSBJ) 800 22 32 C 34* 42 50% 

Ota IBs 480 30 41*82* 18* 28 34 
f«B J 500 lift 34 38 41* 51 SB* 
ComMi 000 3M 48 08*10*19* 28 
rS23 ) 500 11 22* 33* 35* 48* S3 

CosnUota 550 26* 41 48* IS 23 34* 
(■558) 600 5* 17* Z7 48* 52* 85* 

K) 800 SB 78* 80 11*24* 38 

rff») 860 26 48 59*33*47* M 
OgHtw 500 46 89 71* «4 16* 224 
{■S38 ) 550 18* 32 44 31* 39 45 

Uni Sear 600 57 64 75 3 9 12* 

fMT \ B90 38* 31*44*17*28* 32 
Mata 5 S 420 22* 33 42 8 16 20* 

M32 ) 480 6 14* 29 32 38 42 

HUMOR 460 48* 61*88* 8 13 22* 

r«B ) 500 22 37 43* 21 28* 41 

Satan) 420 43 51* 01 7 16*20* 

T4S2 ) 480 17 28* 38 22* 33 38* 

Milan. 730 18 34 4426*33* 47 
(*750 ) BOO 4* 18*23* 85 68* 79 
SfenMM 220 11* 17 21* 3* IS 17 
rZ») MD 4 8 13 23 25* 20* 


SO 7 11 MM 6 6* 11* 
100 3 8* 10* 12 15* 17 

1100 08 M 102 8 26 39* 

1150 33 67* 72 31*47* 82 
800 48* 68 77* 14 24* 40* 
850 IS* 38* SIM 39 40* 87 
mu Fta M f* Hr 
420 38* 48* 83* 10* 18* 23* 
460 17 26 33* 23 38* O* 
TOO 18*22* 21 8 lift 15* 

180 7 13* 17* 21 23* 27 

330 15* ZB* 3§* 16* 21# 28* 
360 8* M U 38 39* 48* 
*ta Ok MM Sir Ok Hr 


f») 

Opto 

Grata KM 

T440) 


Fbm 140 M 17 «* 2 6* 9 
H50) . 100 3 6* 10*12* U 21 

Opto to Ml 3*8 No* FA Ms 


en Am 600 34* 


31 40*49* 


fSH ) 550 16 28 33 62* 71 79 

MI Mb 420 37 49* 54*12* 10 25* 

(*440 ) 460 M 27* B 32* 38 47* 

SIR 380 33* 41 44* 8 11# 17 

{*387 ) 380 IS 23 28* 20* 25# 31H 

fttftfaOH 380 W 24* 32 14* 22* 25# 
(■aao ) 420 7* 12* 20 94 42 44* 

CtoiyScfe 480 35* 68* SB 8 14 21* 
(*400 ) 500 18* S 34 27 33 41 

Eatara Bee 800 74 90* IM 27 36 42* 
(■841 ) 850 47* 63* 78* 48 58 68 

Stares 465 47 57* « e% 12 16 
T487 ) 500 20 32* 39* 23* 29# M* 

t£C 300 20* a 30* 8* ISIS* 
raOBI 330 711*16*28* a 32 


cue Puts 

Opto to to «tgr to Mi to 

Ham 240 73 a 29* 4# 8 12 
[■255 ) 280 9*14* a 13 17*21* 

UtaDO 134 25 - - « - - 

HM ) 16* 11* - - 11 - - 

Lucas Ml 180 S a 31 5* 8ft 12 

(*199 ) 200 a IBM a 14* IB a 

P&O 850 48 84* 73* 13* 31 44 

r®6 ) TOO 21* 38* • 47* 57ft 70* 

ptotfon in a 28* 31 4 7ft 9* 

nw > 200 12 14 a* 12 18% 19 

ItedMStf 330 18* a 30* 15 18 27 

(-333 ) 380 713*17* 34 9 45 

RI2 850 58* n 92 23* 34* 47 

(•883 ) 800 a 51* tt 49 ®7D» 

tafcnd 550 31* 48 S3 34 31 43 

(-881 ) 800 11* at* a* 57* 82 74* 

toy* Inset 280 28* a 42ft 11 14* IBM 
(*295 ) 300 17*27* SZft 21ft 23ft 20* 

Tssco 240 18* a a 9 13ft 17* 
(*248 ) 260 fi 15*18% 20* 24 28* 

tttoona 200 a a a 7H 11 13ft 

(*208 ) 217 8ft 14ft - IS* 19* - 

IMtara 354 a - — 18ft - - 

CSSS) 384 6 - - 38* - - 

ftto Oct Jm to oa JM Apr 

BAA 500 JT 37 47* II 15* 2D 

rS15) 525 15 25* .33 22 28 32 

Ttamaj Mr 500 54* 81 88 4K 14ft 17 

C644 ) 650 21 » a 21 35 38ft 

Opto to Dta tor S«p Dec to 

AMffM 300 a* 35* 44 5% 13 22 
r*05) 420 7 19*27* 21 27*37* 

tanked M 3% 4ft 6 tft 3 4 

(■31 > a 1* 2ft 3ft 4ft 6* 7ft 

Bod** 550 48* 80 88ft 3* 14 22 

(■585 ) 600 11* 29* 4!» 24* 35ft 46* 

8fcB CMb 300 a 34 42ft 3ft 11 IBM 

(■321 ) 3» 7 « 28ft 18 28 Sift 

Brito Gag 300 T2» 19 23» 8 15* 17% 

(•304 ) 330 2% 7 12 27 35ft 37% 

tons 200 18ft a a 3» 8ft 13ft 

rmj 220 B 16 IB* 13 16 M 

Hto ww IN G a 18ft 0 11ft 13ft 

(18T) 200 2 5H 10% 21 25 28* 

Lsrata 140 7 M 17 6 10% 13% 

(142) 160 1ft Bft B 21 a a 

NtfPMV 500 28* 4283ft B Zt 25 
{*510 ) 550 S 19 32M 36% 48* 52 

Seal Rotor 420 19 35% 40 11 19 25M 

(-427 ) 450 4ft 18 22)1 37 42ft 47» 

ton 120 6* 8* 12% 3ft 6* 9 

(121 ) 130 2 4* 7ft 10ft 13 15* 

FWt 240 9 15 22 Tft 15* 19 

f240) 260 3 7* 13ft 22K 28ft 31K 

Tarmac 180 9* 14* U 7 14* 17 

HR) 100 3 7 11 22* 28* 30* 

That Bl 100041*71* 87 14*32* 49 
naz2J 1050 18* 46 80* 40* 56 74 

TS8 22D 8* IS H* 8ft 12ft 15 

(-221 ) 240 2 8ft 12 «ft a a 

TtattB 340 C 21 26* 5 11 15 

f240 ) 280 8ft 11 15ft 17 22ft 2S» 

Mm TOO 38ft 63* Bl* 16 34 a 

(718 ) 750 13 38ft 56* 44H 61 71ft 

opto oata a w J" » 

Sm 600 S3 0 70 17ft 28ft 40ft 

(*844 ) (SB 21 33 0 44» 56 65 

FEE 75p*» 700 81 0 HB 23* 40% 83% 

[741 ) 750 M 83* 7Sft 47ft GE 89 

Raulan 600 a 44 56* 14H 84ft 31ft 

rStO) 512 22* - - 21 - - 

Opto to ftto Hay to Fefr May 

fab-feea 180 15ft a 24* 8 lift 15ft 
nOB) 200 6* 12 aim 23 2E* 

" UreMtaO aecorty pries. Rmirn awn an 

band or cutas offer pnen 

tout! 31 Ttata canon: 30X54 Gate K29B 


FT GOLD MINES INDEX 


AMaflQ 
Mantra* fl 
JMiMato(l2) 
CopjriBht Tha As 
Bfl uiw b tra ctate I 

Utestpaenam a 


to 

39 

«Ch| 

re to 

to to rev 
a a to 

Gnra At 
yMd V 

52 neak 

Ugh tee 

206854 

+U 

2921.15 1998X4 1B0.17 

2M 

23B7XB 1B22X6 

3173X9 

+2J 

3090.47 314554 2285^9 

429 

344089 190223 

271158 

♦23 

real tp 29Q5X7 renew 

123 

301329 168118 

1632418 

+« 

1612.14 15BG3 170022 

079 

2039L65 138300 


nktra Umtad 1994. 

# rente of ita np t M. Basb US Dab*, toe Vaknc 1000X0 S1/12S2. 

, butac AugXI: 264.1 ; dt/a ctanot: tU pefeKK Yeer aao: 193.7 TPariteL 

tatetto ter to ataagn. 


RISES AND FALLS YESTERDAY 


Bridsh Fundi — 

Ottter Fixed Merest — 

Mineral Extraction 

General Manufecturara - 

Consumer Goods 

** ■ 

ocrvicos 

UtJities 


Investment Trusts _ 
Others 

Touris 

Omb baaed on Suae c 


TRADITIONAL OPTIONS 

Fkst Dealings August 22 Expiry 


Rtaae 

Fate 

Seme 

45 

18 

9 

8 

4 

3 

56 

81 

82 

133 

113 

398 

54 

32 

101 

93 

79 

331 

15 

24 

6 

77 

97 

195 

109 

42 

318 

53 31 30 

643 

499 

1471 


UstDeatage 


September 5 Settlement 


November 24 
Decembers 


Ctaa: Aran Energy, bran Ml, Euro Dtene y , Oerdbter, Qraycoat, Lon Beta; NHL 
Pita. Shelton (Monk)), Shoprfto, YTV. Puts: Attan InH, Greycoat. Puts & Galls; A ran 
Energy. Mount Sugms. 


LONDON RECENT ISSUES: EQUITIES 

tew AM Mkt Close 

pice paid cap 1994 price 

p up (EmJ Uph Low Stock p 


Net Dtv. 

A*. W. 


- 

FJP. 

25X 

100 

92 ■JjArfXTiascan 

94 


re 

- 

- 

- 

- 

FJ». 

20X 

89 

81 Be0ta G Shn mo 

81 


- 

- 

- 

- 

100 

FJP. 

19.4 

IK 

100 Beacon Inv Tst 

102 


- 

- 

re 

- 

- 

F.P. 

1X2 

48 

43 Do. Hfenants 

43 


- 

- 

- 

- 

10 

FJP. 

8X9 

35 

21 Camel 

34 


- 

re 

- 

re 

165 

FJ». 

74.1 

173 

185 Chambertatn Ph. 

186 

A 

W7.3 

1.0 

5-5 

214 

120 

FJ*. 

12 JS 

133 

T18 Copyritfit Ptcm. 

125 

-1 

uWl-0 

23 

1.0 

444 

w 

FJ>. 

8.71 

71 

88 Frrepori 

88 


- 

re 

re 

- 

- 

FJ*. 

156 

1*2 

1*a MC tads Wrta 

1*2 


- 

re 

- 

re 

- 

FJ*. 

325 

94 

91 INVESCO Jpn Disc 

S3 

+1 

- 

- 

- 

re 

- 

FJP. 

358 

60 

42 Da Wananta 

48 

+*2 

- 

re 

- 

- 

- 

FJP. 

- 

77 

63 JF R Japan Wfts 

66 


- 

- 

re 

- 

- 

FJ*. 

2 on 

48 

35 ^Meorum Power 

48 

+5 

- 

- 

- 

- 

100 

FJ*. 

655 

98 

91 Old Mutual SA 

83*2 


re 

- 

- 

- 

- 

FJ>. 

5.74 

45 

41 Do Wterants 

41 


- 

- 

- 

- 

23 

F.P. 

10X 

31 

29 Otfate 

29 


- 

- 

- 

- 

- 

FJ*. 

0X0 

17 

5*2 Da Wtarants 

17 


- 

- 

- 

- 

re 

FJ*. 

1-20 

40 

39 PetmceHIc 

40 


- 

- 

- 

- 

150 

FJ». 

181.1 

182 

157 PRar Property Inv 

160 


LN3.7 

re 

23 

re 

- 

FJ*. 

4.79 

44 

3$ Soter Wrta 99104 

41 


- 

- 

— 

- 

100 

FJ*. 

3X1 

106 

97 TR Bee Gth Ptg 

105 


_ 

- 

— 

re 

- 

FJ*. 

2X0 

36 

29 Tops Esta Wrts 

30 


- 

- 

- 

“ 


RIGHTS OFFERS 


issue 

Mud 

Intent 

pries 

[mM 

Rerun. 

P 

up 

dale 

340 

N1 

23/8 

32 

1* 

3/10 


1994 

High Low Stock 

53pm 41pm Gfctx; Maw 

l* 2 pm > 2 pm Raglan Preps 


Cto8tng tor- 
price 
P 


FINANCIAL TIMES EQUITY INDICES 

Aug 31 Aug 30 Aug 86 Aug 25 Aup 24 Yrago ■High tow 


OnSrtsry Share 

25354) 

26365 

2562.0 

25295 

25075 

2403.1 

27138 

22406 

CrcLtfv. yield 

4.03 

4.02 

4X0 

4X3 

4X7 

3X4 

4X8 

3X9 

Earn, yki % ful 

5X0 

6.79 

5.76 

sxi 

555 

453 

5X3 

352 

P/E rado net 

18X4 

18.48 

18.68 

18X2 

1527 

28.19 

33X3 

1759 

HE rations 

1W* 

18J3B 

19.18 

19X3 

1858 

28X4 

3050 

1851 

-nr 1094. Ontaory Shan MR atica oumplaann: Htfi 37135 2/02*4; te «9X MM 
FT OnSnary Stree Mre tarn dale 1/7/35. 



Ordtawy Share Irately chenges 

Open 9u00 IQUOO 11J0 12X0 IMP WOO 1SJ» IBlOO High Low 
2S36.fi 25309 264 60 2548.7 2546.7 25400 2548J3 2542.6 2S35.B 2»&4 2534J 
Aug 31 AUfl 30 Aug 26 Aug 2S Aug 24 Yr ago 

SEAQ taorgHna 31X43 35^20 32.462 34281 29X94 3*332 

Equity turnover (Err# 1M6X 1509.0 1904.4 1B81£ 14509 

Bpity faagabist - 38X74 35^83 37,793 32^38 40607 

Shares traded (mQT 4832 504.0 71 8 X 543.8 584.7 

letawtag MtwH ButawM and omraraa tumow. 









































FINANCIAL times 


THURSDAY SEPTEMBER 1 1994 


LONDON SHARE SERVICE 


9 “ 

iS IIS “2 

m i«2 48 

106 102 
SO 


Sender Japan BMP □ » +J, 


U 1107 -12 
-2 

27 1KJ0 £ 
06 4950 04 

44 014 

11 195-8 

12 - - 

13 - - 

U 1404 5.7 
72 27S-B -OB 
OB 181 7 100 


02 BOB 02 
1110822 08 


U MOB 142 
- 1007 13.4 


47 3672 1.1 

OB 3609 -Ol 


BOG -92 
-982-08 


27 2109 201 
OS 1304 OS 


UJ - - 

-7702 208 
- 912 01 
U 1408 47 

32 672 04 
129 - - 

S915B42 202 
49 1803 -1.1 
U 1772 -12 
12 - - 
U 1732 03 

62 1209 -08 
01 - - 
02 1105 -49 
U 402 112 

22 2112 07 
12 2Z72 412 

u : : 

122BB62 OB 
09 902 152 
12 2592 92 


2.1 2932 101 

- 008 -09 
41 1122 -08 

- 91.4 HO 

mi - - 

-301-42 
00 2062 172 


IBM 211 

488 +8 W7 

+4 471 




HI tlf 4« 

330 +5*2 305 

287 +T 404 

WM 464 

■s 5 ■& 


+ or II 
Pita - m 


32*2 33 

11k 

a = » 

IBM 236 

a = *» 

238 482 

■ft 98 

m TIB 

IBM 206 

377 413 

14M TBB 

394 -1 438 

J6B 1047 

11% +1 HI 

ltd 170 

MS ' _ aaa 

ZZ 90 

-1 478 

is 

n % 

nm 

-273 

34 

310 — m 

a? s 

440 SIS 

300 -2 408 

43 +% 72 

W 1 ID 

» *3® 

2 tfl 22 D 

22 -T= 12 

BOS +19 IK 

» -I *3S*a 

79 -6 110 


«5 


91 

HE 

13 

SOD 

za 

107 

19 

372 

18 

322 

4.1 

— 

03 

107 

42 

_ 


148 

41 

124 

00 

172 

45 

+ 

11.1 

_ 

45 

247 

52 

111 

a? 

— 

17 

ZU 

32 

232 

22 

112 

42 

_ 

8^4 

mm 

15 

172 

14 

* 

02 

Z72 

32 

05 

04 

: 

112 


10 

412 

17 

272 

72 

— 


109 

48 

182 

19 

142 

05 

— 

44 

103 

2.1 

M2 

1.7 

31J 

12 

103 

1.1 

42 

soS 


OB 

17 

65.1 ! 

17 

15.1 

47 

111 

1.1 

222 

bI 

i 

w 


&V 

PIE ■ 

32 

12.1 ' 

42 

— ■ 

52 

U 

ib!' 

72 

01 

4Z 

_ 1 

01 

114 ] 

52 

179 

49 

TOO 

49 

21.1 ■ 

41 . 

311 , 

01 

- I 

18 ; 

mu | 


-A «" 

H SIS 


+5 277 


+or II 

K 

ns 


» 

+i its 

its 

5”S 

TO4 

31 

_ 797 

— 82M 

*37 


torr&Stae_ Id 

JananSbatS— — 


»'B n — W 
Thut-ZiC 


MU 

VU 

OpEm 

Oft 

f 917 

13 

1 3109 

U 

l 067 


827 

32 

1 1JS5 

13 

nu 

00 

XU 

9J2 

1 4912 

49 

428 

— 

3002 

1,7 

1809 


719 

ii 

7622 

HU 

a 

989 

- 

2807 

12 

HU 

ZS 

217 

09 

503 

32 

085 

_ 

H9 

— 


52 

8* 

52 

472 

— 

123 

- 

2443 

14 

492 


128 

- 

on 

— 

«2 

32 

317 

24 

018 

72 

B3J 

11 

6EL3 


ua 

_ 

282 

_ 

124 

— 

103 

_ 

232 

12 

249 

12 

BdE7 


an 

_ 

K72 

27 

M4 

12 

342 

14 

248 

82 

802 


218 

_ 

281 

02 

325 

IS 

098 

4B 

2*17 

40 

3X7 

25 

072 

5.0 

■08 

07 

547 

113 

B7.1 

12 

2408 


(499 

07 

T S 

15 

309 

10 

n.i 

09 

540 

15 

248 

09 

BJ2 

16 

294 

12 

140 

22 


02 

138 

_ , 


42 

0.1 

2201 

01 

2992 

at 


32 ' 
102 

>09 

10 : 

438 

_ 

312 

28 ! 

2302 

32 

282 

74 

417 

193 

12K 

q«V 

S3 : 

442 

1B9 

32 

IIU 

25.1 

12 

222 

32 

502 

2 a i 

MOI 

47 i 


xtc. 


bbs 




72B 52 

12BB 12 
2*82 12 
73*2 22 

401 3.1 

9U 22 
42B 

4012 - 

829 U 

472 17 
112 02 
449 29 
112 

1400 07 
433 72 

BOfl 20 
1332 12 

192 

103 17 

3KL4 11 

■S3 1.1 

■20 72 

3012 12 

16b* 12 







■apt 


+ nr ISM 

- Up ton 

-14 6364 610 

-*a 333*2 IBB 


s 

i +« m iBi 
I -14 734*2 S87V 
! -14 8B6*i 4134 

, -4 m am 

S SC 286 

1-174 7W4 515 

± *5 5 

i ji.'Bsi 

[ -2§ *o!S °7<W 

t iam 

I 84 80*2 

! ^ JZ 3 
; ;*■«** 
| ^SR5 *8 

80 70 

i+4 00 82V 

l _ MB 187 
i +4 ISO K*a 

| ^1lS£ » 

\2 a 

! -a 5 ? 

! * * "l 

IS 04 

i sa 17 

-1% *»V W 
-111 OK 0044 

i *11 7i§ 

H S 5$ 

- n -as 

i = *a*w 

t« a 

: -S fjj! 

IC MBV D24 

3 on 8614 

—1*4 689*4 511*4 

-4 mi art 

‘ 3 1 s| 

+7 849 ..W 


W User 
firi wv naH 
OS - - 
02 - - 


-ms zoo 

ZB 7303 11.4 


t*-n I 





42 841 106 
- 233.7 32 



62 1102 102 


112 - - 

22 - - 


12 - - 

22 “ 
U - - 

17 - - 


OJ - - 


A HOTELS 

tor 189* 

"S j. t *5 
oȤ 

* 3 VI 

J = | | 

i i « % 



7 

80 -1 

■"S = 


1 * 
3 =5 


MM W 
apEn era 
-4 "7 06 IZi) 104 

TO*a lift *4 107 

i -Tosh a® 2107 13 

1 +2 <73 256 6206 03 

I +1 191 10 % W 12 72 

1 40 JZ 3 51 

I 983 424 7149 42 

70 53 252 1-0 

I +48 15 B 6 1050 1219 1.4 

+45 1418 1043 402 12 

114 02 1643 4 A 

i -2 1913 COB 1200 16 

-3 MO ' 205 M 2 42 

ION & PRODUCTIG 

*a IBM W Md 
- hU) tow CapEm Vi 


IBS 
176 «n 
« 019 

33 



m 




- tab to" DeEm 
-ft ft li 

-1 RS 42 1*7 


“S ^ : 

52 

41 22 1702 22 

MB 197 1002 42 

% i4 aoa 

■4 * 812. - 

77 45 

*S1 33 1802 - 

36 23 SI-3 

19*2 (Hi 224 - 

» ift ai 

■ft 15 119 

8S% 37*2 S72 12 

*»>» 3*5 tsa - 

12*2 11 043 

2>a 1*2 8LI - 

Oh 17 720 

ft | W ' 

44 2B% 203 - 

*17 % 400 - 

i£$'£ s ? 
26V 21 647 04 

S S SS : 


54 » U ZB 

31 <71 - 




Mca - MK 

147 1B4 

377 444 

Z» - 318 

170 SOB 

«H +2 M» 

09 *171 

406 -9 *934 

iE a ^ s 


MB -3 IK 
M3 T9B 


U 109 
12 - 
105 72 
&> ♦ 




«3 ...i 


n ra 

TV % 


jj j? * iS 
« - *1 *! 
a jf s | 


3 - 

n®, -1H 

71 __ 

«8 

9 

*\ i 

7 

ten _ 

m +_ 
m -ii 

i ^ 

a «_ 
= 

"1 ^ 
114 

30 +1 

ISO _ 


■MB 111 ^ 

*a "i 

75 55 

a a 

is in 

1 *1 

W 1S3 

m mo 

3Z4 21 tj 


m so 

OB 16 
W 119 

% ft 

a a 

Oft *30 


742 14 

1,461 09 
416 ZOO 
467 112 
033 - 

<722 - 

122 - 
147 42 
162 49 

033 - 

IB - 
M2 - 
827 - 

002 - 
Mil - 

3M “ 

0048 01 

727 17 

322 - 

849 
457 

80S - 

Ut - 
711 

625 - 

572 - 

441 

OM - 
1 U - 
1322 

109 


18M MB 

319 -4 436 

BIB -8 UK 

88 114 

MO +2 137 

17V +i* 17V 

980*9 -1*2 601V 
MnCGraap^ftll 90a __ 191 

PmounnH JO 313 430 

Pw5f«t* ii ts ic 

MOo* 291M 311 

^ 36 

ins "+i an 

279 - 281 V 

138 147 

a i? ^ 

59 70 

2*0 +3 771 

27 34 

118 -1 IBS 

mb m 

139 ZOO 

kb «a 

149 183 


*1*1 


W10V *KH2»V 

373 412 

% 4% 

nl +3 tit 

277 ■an 

wn sad ■* 573 

K HO 4 M -8 4 S 

99 IIS 

m k ** 

3a ZZ *c 

xu zm 

ill « 

2399 *291 

<8 SIT 

t» m 


+« 10 
Plica - Ndi 
1TB -A MO 
IBM 1*7 

a a 

>71 271 

11* *144 

IB Ml 

28 _ 37*a 

*a = s 

as 46 

JOB +3 -3D*t 

3ttd *283 

19*T __ ■» 


1285 22 101 

12*2 II 172 
on 5.1 M 
400 42 112 

283 1.4 162 

1287 22 202 

831 22 145 
201 47 184 

382 14 TOD 

M41 112 42 

304 45 17.7 

m2 46 142 
173 52 - 

1805 14 142 

435 - - 

4(2 2.7 317 
fti 1« 11.1 
11B9 Z3 202 
102 12 117 

4»7 ID 177 
HJ) 12 143 
2082 22 215 

028 - 342 

917 48 lOI 
Ml UM 
»i 42 272 
4Z7D 3D 1U 
804 27 152 
3009 02 f 

!8 kSJ 

l j» 1U 82 
558 42 102 

van 42 113 
1982 14 242 
2JH7 12 604 
189 15 4 

4482 12 $ 

221 - - 
224 

ISOS 2D 343 
4*2 85 - 

2303 42 1U 

su io m 

3U U1U 


m ftf 

Ua£n VO Pff 
T5 4.1 142 

412 72 - 

on - - 

1401 - - 

913 22 202 
«3 a - 

a : : 

Sr - mi 

202 44 201 

1282 22 104 

035 


=a 




xxrn 


l 


33 


m 



ran 


XL 


5 






MM 

TV 

°ts 

era 

09 

wm 

05 

48.7 

19 

1266 

2D 

«ra 

12 

<472 

44 

9973 

OS 

3291 

u 

BHD 

51 

*as 

32 

15 

au 

92 

1313 

1.7 

1382 

— 

•41 

— 

132 

- 

1382 

10 

4A5 

40 

888 

22 

414 

49 

«62 

19 

1UB 

aa 

ms 

08 

441 

17 

MJ 

45 

800 

82 

12*4 

32 

3922 

IB 

1229 

52 

HU 

U 

HI 

82 

4182 

07 

312 

It 

S5 

5D 

IS 

702 

07 

«2 

13 

1134 

40 



an 




S£ 








s 



* 


aitaStaa 




£2gg£s:&, .esd^GSififigSg gKB.BB&ssBesB.iseEsg.s.egs.BeEe.Beest:, igsc:^c.«.-;sseg£E£;£gsSs sSesesesEaesK^efiess 




















































































































































































































































































































































































































































CURRENCIES AND MONEY 


FINANCIAL TIMES THURSDAY SEPTEMBER l 1994 


MONEY MARKET FUNDS 


MARKETS REPORT 


Lira recovery continues 


The lira yesterday continued 
its gradual recovery on the 
currency markets to again 
reach the LI ,000 level, writes 
Philip Gawith. 

A combination of favourable 
events - most recently, a 
favourable floating rate bond 
auction - helped the Bra to a 
London dose of LI ,000 against 
the D-Mark, from Ll.007 on 
Tuesday. 

Elsewhere in Europe, the 
D-Mark’s performance was 
fairly mixed, as it failed to ben- 
efit from the upward trend in 
French interest rates. The 
franc was barely changed at 
FFr3.422 against the D-Mark 
from FFr3.423. 

The announcement that the 
Irish Republican Army was 
suspending military operations 
after 25 years had little dis- 
cernible impact an the pound. 
The trade weighted sterling 
index finished at 79.1 after 
opening at 7&8. 

Market talk about p rogress 
in the US-Japan trade talks 
helped the dollar finish firmer 
against the yen at Y100J75, 
from Y 99 .665. It finished 
slightly lower against the 
D-Mark at DM1.5783 from 
DM1.5806. 

Overall activity was quiet, 
with most traders fiscusing on 
today's Bundesbank council 
meeting, and the release 
tomorrow of the monthly US 
employment report. 

■ The firmer lira was one of a 
number of currencies which 
defied those who thought 
higher rates in France would 
favour the D-Mark. Mr Adrian 
Schmidt, international econo- 
mist at Chase Manhattan, said 
there were three factors which 
explained the lira's recent 
recovery from a low of Li.030 
on August VL 

These were the firmer tone 
to the dollar, improved expec- 
tations of a credible budget 
package - based primarily on 
government plans to imple- 
ment a pensions reform pack- 
age - and the good response to 
Tuesday’s auction. 

While the recent absence of 
political tensions has clearly 
helped the Bra, most observers 
believe the market will con- 
tinue to place a risk premium 
an it, until there is evidence of 
sustained calm on the political 
front 


Against tf* D-Mwfc(FBf parOM} ■ 
9-41 — ; — ’ ••-■■—-- 



3-44 1 — r 

MipisMSM 

StMcetFTGrapNto 

■ P a t s hi Here VM 


Analysts were split as to 
whether ^ by lead- 

ing French commercial banks 
to raise rates presaged a bot- 
tom in European rates, or not 

Mr Brian Durrant economist 
at brokers GOT, said the rates 
increase did “not have Bank cf 
France official policy implica- 
tions and certainly does not 
imply conclusively that the 
European interest rate cycle 
has bottomed.” 

But Mr Robert Thomas, heed 
of research at NatWest Mar- 
kets, said the move, aimed at 
bolstering lending margins, 
“surely underlines that there is 
not much more to go in Euro- 
pean rates, if at aH” He said it 
was most unlikely that the 
banks had not spoken to the 
Bank of France first, and their 
action in then raising rates 
suggested they were not confi- 
dent about the prospect of a 
further fail in rates. 

Various theories circulated 
about why the banka raised 
rates. One is that they were 
trying to pressurise the Bank 
of France to hasten rate cuts. 
Another suggested they were 
acting pre-emptively in antici- 
pation of the Bundesbank rais- 
ing rates at its meeting today. 

■ The latter view is certainly a 
minority one. A Reuters poll of 
20 European economis ts, 
of the council meeting, found 
that (ally five of those polled 
thought file discount rate 
would not be cut again, and 
none are predicting it to be 


above the current level of 4£ 
per cent at the end of the year. 
The consensus is that it .win be 

at 4J25 per cent 

Economists at SG Warburg 
argue, in their latest foreign 
exchange review, that “the 
Bundesbank lacks economic 
justification for further mone- 
tary relaxation.” Ibis is based 
on the view that inflation is 
approaching a cyclical bottom. 

“They will also have to facili- 
tate substantial issuance 
throughout potential political 
uncertainty in t he coming 
months, a scenario which -rules 
out measures that may leave 
th» D-Mark an< ^ Bundesbank 
credibility at risk.” 

If the Bundesbank does opt 
for change, it is most likely to 
revert to a variable rate repo. 
The repo rate is currently fixed 
at 485 per emit Earlier this 
week, a Bundesbank council 
member said the hank had an 
interest in fcpgpmg ahve inter- 
est rate speculation. 

■ Analysts were reluctant to 
predict whether the IRA 
announcement mi ght benefit 
starting; One wna of reasoning 
was that the pound would firm 
if prime mfafatw John Major's 
reputation was seen obviously 
to have been anhawnari by the 
cease fi re declaration. 

Sceptics, however, said he 
might well have opened a Pan- 
dora's box; fostering political 
division amimg his own sup- 
porters. m the medium tern, 
analysts surmised that the fis- 
cal implications of a unified 
Ireland would probably have 
more impact on the Irish punt, 

than on sterling 

The August purchasing man- 
agers report conveyed little 
fresh information about the 
economy and was ignored 'by 
sterling. It also had little 
impact on the futures market, 
with the December short ster- 
ling co n tract dosing at 93.40, 
from 93.43. 

The Bank of Tfti gbmd pro- 
vided UK money markets with 
£194m assistance after forecast- 
ing a daily shortage of £30Qm. 


J*S1 £ t 

mm iaaon • \mza nun - miao 

km 26SL0Q - 28858) 174X00 - 173L0Q 
Ml O457S-O45B0 02879 - 02887 

Mad 384309 - 36461.6 230840 - 230710 

U 33SUB- 3554*4 219190-219390 

ttAt 59X2 - 59467 L6715- 16735 


| POUND SPOT FOG' 

/APD AGAiK-T 

Trip POUR'D 








tag 31 


Oaring 

rid-pdnt 

□range BWtotfer 
on day apraad 

DaytaMU 
riW> low 

Om month 

R ate %PA 

Three mate 

Rata KPA 

One year Bank si 

Rata WA Ena Index 

Eurapa 












Austria 


179867 

+00401 585 - 738 

17.1021 108683 

178623 

03 

17.0605 

04 

- 

- 

1148 

Belgium 

(BR) 

489209 

+0.1364 Q04 - 614 

500100 407230 

409159 

Ol 

awara 

OO 

Ad ItMfi 

as 

1105 

DarimarX 

Wr) 

BUST 

+0.0027 896 - 664 

05883 05501 

0571a 

-18 

98825 

-18 

06328 

- 0.7 

. 1103 

FMand 


79388 

♦00215 325-451 

7J660 7.7980 

- 

■- 

- 

- 

* 

- 

848 

Franca 


89908 

+00061 882 - 033 

03227 02782 

03034 

-05 

68041 

-02 

02663 

04 

1098 

Germany 

(DM) 

2^251 

♦CUX718 341-200 

2A309 2+4139 

04252 

OO 

24222 

08 

28936 

18 

125.7 

Graaea 

(Dr) 

357 JUS 

+1.148 786 - 064 

360495 366518 


- 

- 

- 

- 

. - 

- 

Ireland 

W 

19134 

-00021 125 - 143 

1^3170 1.0102 

1.0138 

-OS 

18152 

-07 

18200 

-07 

1048 

Italy 

w 

242890 

-13.73 666 - 614 

2442^8 242520 

24338 

-05 

244585 

-3.1. 

25001 

-34 

768 

Lurenbourg 

OR) 

49.9209 

+01354 804 -614 

50.m00 49.7230 

498159 

Ol 

403259 

08 


08 

1168 

NathsrtandR 


2.7216 

+00053 203 - 229 

2.7268 2-M05 

2.7217 

-Ol 

2J184 

05 

28668 

18 

1203 

Norway 

W) 

10.8362 

+00299 316 - 388 

106814 105906 

106322 

03 

108427 

-08 

108287 

0.1 

hb n 

Portujri 

(Ed 

248916 

♦0821 714 - 117 

247.434 245884 

248846 

-04 

261-826 

-68 

- 

- 

— 

Spain 

ptd 

200358 

-0042 7B6-8S2 

201802 200853 

201828 

-08 

wwnna 

-24 

204.774 

-18 

807 

Sweden 

fSKri 

119722 

+00117 641 -802 

11 5054 11^203 

118837 

-zz 

118442 

-ZA 

12.1647 

-28 

74.1 

Sarizertand 

(SR) 

00436 

-OOOII 424 - 447 

2JM77 00363 

28422 

08 

28375 

12 

2.0053 

18 

- 1207 

i« 

E) 


- 

- - 

- - 

- 

- 

- 

- 

re 

701 

Ecu 


19887 

+0002 692 - 7122 

L272S 1^668 

18704 

-07 

18708 

-04 

18085 

Ol 

- 

SORT 

America 

- 

0944678 

“ 

“ “ 


" 

" 

‘ 

' 

” 


Argerttoa 

CP«M 

1.5363 

+00028 309-368 

1:5369 1^330 


- 

- 

. - 

• * . “ 


— 

Brad 


198S2 

+00067 641 - 882 ' 

1-3886 1-3828 


- 

- 

- 

- 

. - 

— 

Canada 

(C« 

2.1074 

+00102 088-082 

2.1095 2.1001 

2.1067 

04 

2.1072 

08 

2.1079 

08 

868 

Mexico (Hew Peso) 

02157 

+00338 108-206 

52206 52091 

- 

- 

- 

- 

- 

- 

— 

USA 

» TJ365 

EaetfAMca 

+00032 382-368 

1J3372 IJSSSO 

18383 

02 

1 8345 

as 

18318 

18 

638 

AudraBa 

(Aft 

2JK38 

+00009 628-650 

241704 . 2.0589 

?nwaa 

08 

28662 

-as 

28833 

-08 

— 

Hong Kong 

(HK»| 

11^741 

+00247 710 - 772 

11^787 112473 

118702 

04 

118681 

02 

118761 

OO 

— 

Indta 

Pd 

48.1861 

+00984 628 - 133 

402140 400880 

- 

- 

- 

- 

“ 

- 

• — 

Japre 

(V) 

153V18 

+1.102 850 - 867 

153290 152.550 

150688 

28 

162.714 

01 

148828 

38 

1806 

Malaysia 

(MU 

08319 

+00183 304 - 334 

08334 38163 

• 

- 

- 

- 

’ - 

» 

— 

NaarZariand 

(NZft 

pssw 

+00041 608-537 

2J355T 2*487 

28561 

-18 

28639 

-18 


-18 

— 


Fare) 

408406 

+00046 021-789 

408788 404021 

- 

- 

“ 

- 

“ 

- 

— 

Saucl Andre 

WD 

5.7825 

+0012 611 -638 

07648 07486 

• 

- 

- 

- 



— 

awn® 

(Sft 

29047 

+OOOS2 040 - 064 

+ anw; 28001 

. 

- 

- 

- 

- 

- 

— 

S Africa (Com, 

ft 

6^118 

+00114 096-140 

05140 04864 

- 

- 

- 

- 

“ 

- 

- 

Stairs OFfru) 

W 

88143 

-00546 875-310 

68567 68875 

- 

- 

- 

- 

- 

- 

— 

Saudi Korea 

(Won) 

123005 

+028 873 - 038 

123053 122783 

- 

- 

- 

- 

- 

- 

* — 

Taiwan 

bft 

409478 

+01092 315 - B42 

402842 401479 

- 

- 

- 

re 

- 

- 

— 

Hated 


384740 

+0.0647 611 - 888 

304868 303480 

- 

- 

- 

- 

- 

- 

- 

-tfiDR tdaa far tap 30. BkMri* avaarta ki era PaiKl seat reri aha nrty era hat ttaaa dretari ptaore. Forarei nrea 

re not riraedy qaond ra tha 


parearepd tern 

■at rare atarfta bore ejfci4ated by taa Bar* of brent 


tuna 

- UttSkL OBw and Wd-nM In bofl, 

fata and tae Dot* Spat 

riria rfaibad fare THE VMMVUIBR 





M CM Ml* 


Money Market 
Trust Funds 


CMttftCB 

UOM&lJrtMKMOM 


BBMIWtlM llWW . . WHB10Q 

linrlc -I -I - 

UllUd MMRMIMMFUMrte 

. toJriqdSnurafcipnte Wl-flekWtl 

— ** - ■"•■SBEsSl 9 Ilfs 

g^mrwTiTrit I ttt zati zn I a* 

0732770114 


DOLLAR SPOT -DP .VAR D AGAINST TnE DOLLAR 


CloWn Change ekWofler Day's mfcj On manta Tltn noofa Ona mar LP Morgan 
n*Hxint on day yW righ tow . Rata *PA Rate %PA Rata ttPA index 


sasa s 


Airatria 

Batfuni 

Denmaric 

Finland 

Franca 

Germany 


Italy 

Luxembourg 


(Sch) 11.1075 -10003 050 - 100 11.1425 118704 11.1075 09 11.1073 09 114325 0.7 

(Bft) 32^600 409205 700-100 324060 32X100 32516 -09 3253 -06 3245 -05 

(DKr) mmb -00112 29 -2(8 69505 02217 99304 -14 99514 -14 64298 -1.7 

(FM) 6.1017 400033 868-048 5.1284 69903 5.1042 -09 6.1157 -LI 5.1857 -1.7 

(FFr) 04018 -00072 005-030 &42S0 64930 5.4048 -07 64118 -07 547 09 

(Cf 15763 -O0OZ2 780-796 15838 15734 15786 -02 T5786 -0.1 15728 04 

(Dr) 238450 4095 400 - 600 240250 238400 23075 -15 240425 -14 243926 -14 

15162 409092 152-172- 18T83 15098 15158 04 15112 14 1.4887 L7. 

(L) 157950 -1295 800-000 158295 167840 158495 -34 1584 -07 1648 -4.4 

(LFr) 324900 400206 700-100 32.9060 324100 32515 -09 3253 -05 3245 -05 

(R) 17713 -00003 708-719 1.7775 1.7990 1.7714 -0.1 1.7716 -0.1 17B56 03 

(MO) 09217 409044 207 - 227 09440 08998 09242 -04 69367 -09 64S37 14 

C6a) 160700 409 900 - 800 191400 190400 19148 -7.1 163425 -06 1707 -89 


Spam 

(Pla) 

130725 

-03 

890 - 760 

131870 130600 

13185 

-3.0 

13189 

-38 

134875 

-28 

807 

Sweden 

(SKr) 

7.7266 

-nnnra; 

230 - 305 

7.7806 

7.6880 

7.7443 

-28 

7.784£ 

-38 

78868 

-34 

798 

SwOzartand 

(SR) 

18300 

-nntwn 

295 - 305 

18347 

18270 

18283 

07 

18273 

QJ 

18178 

08 

1068 

UK 

» 

18366 

+00032 

362 - 388 

1-5372 

1.5330 

18363 

08 

18345 

05 

18218 

18 

878 

Ecu 


18102 

+08006 

099 - 104 

18119 

1805B 

18083 

as 

18074 

as 

1.1998 

08 

- 

SORT 

_ 

144861 

- 

- 

re 

- 

- 

- 

re 

- 

- 

- 

— 

America 

Argentina 

(Raw) 

08988 

-00002 

898 - 999 

08888 

08888 


m 

. 

m 




BrazB 

« 

08885 

+00025 

880 - 990 

08810 

08880 

- 

re 

re 

- 

- 


— 

Canada 

(CS) 

18718 

+00038 

713 - 718 

18735 

18687 

18724 

-07 

18737 

-06 

18846 

-09 

834 

Mexico MawPaacA 

38945 

+0015 820-970 

38970 

38920 

38855 

-04 

38873 

-08 

34047. 

-03 

- 

USA 

(ft 

- 

. 


. 

_ 

. 

. 

. 

. 

- 

. 

978 

Auatrala 

la CreWKHca 

MS) 18438 

-00017 

428 - 447 

18490 

18408 

18441 

-02 

18448 

-08 

18621 

-08 

888 

Hong Kong 

P«SJ 

7.7280 

-OLOOOI 

275 -285 

7.7285 

7.7273 

7.7278 

ao 

7.7286 

08 

7.7436 

-08 

- 

Ma 

9ta) 

318888 

-00012 

660 - 725 

318775 318650 

314538 

-38 

318968 

-28 

- 

- 

- 

•tapan 

M 

100175 

+081 

150 - 200 

100260 998800 

89875 

24 

Qp.rpK 

28 

9787 

28 

1508 


Metadata (MS) 25580 400073 S9S - 995 25813 25510 25489 44 25395 39 2412 -2.1 

NewZariraid {NZft 15810 -00008 903-617 138Z0 14903 15918 -07 14838 -07 1.8881 -05 

Phftppkie e peso) 204500 - 000-000 209600 203000 - 


Saudi 8raMa (SR) 3.7504 - 502 - 505 37505 3.7502 07517 

Singapore (SSJ 15000 400003 886-001 15002 14998 14899 

3 Mica (Com) (H) 35873 - B65 - 890 35880 35740 34028 

S Africa ff»rv) 99 45000 -0046 800-100 45100 45000 45338 

8wfll Korea (WonJ 800550 -02 500-600 800400 900500 80355 

Taiwan (TS) 201845 400195 890-000 299000 201550 269145 

71— aad (Bt) 254400 +0803 300 - 500 2S.0600 25.0250 25-1126 

IflORrara tor Aug U-BUUfaraperei kite Dote Spat Mta draw nay era kat fane dated p 
but are IrapBad by currant infaraW tea. UK, Mol & ECU ara quoad ki U8 cumncy. XP. liorgai 


-04 37568 -09 37744 -06 - - 

LI 14867 09 148 07 

-59 34311 -44 3.7078 -34 . - 

-84 45825 -89 - - . . - 

-45 80746 -39 82556 -3.1 . - 

-08 289545 -09 - 

-35 2594 -39 2572 -2.7 

Mae, r i x ■ea t mm mm not 4— raw— *> 8* ireta* 
non— Mssa Am 30 l Bare wwaga WBblOO 



CROSS RATES AND DERIVATIVES 


EXCHANGE CROSS RATES 

Aug 31 BFr DKr m OM 



Barren PR) 100 18.18 1842 4468 2428 4960 5451 2199 

Daraoaric (OKr) 5290 10 8478 2539 1469 2637 2448 11.12 

Rama (FFr) 9015 1152 10 2422 1921 2923 8979 1241 

Oarmany (DM) 2058 3444 3422 1 0416 1000 1.122 4484 

I re la n d (tq 4898 9440 9.182 2484 1 2385 2.696 1049 

Itriy W 2499 0494 0442 0.100 0442 100. ' 0112 0438 

Nefta rt ta aJe P) 1845 3518 3450 0981 0472 9814 1 3407 

Nona* (NKr) 4898 9998 7407 2981 0853 2282 2480 10 

Portugal (Em) 2092 3473 3481 0882 0410 8824 1.102 4405 

Spain (Pig) 2446 4.782 4.133 1909 0504 1206 1459 5994 

8 m dan (SKi) 4246 8456 0882 2043 0453 2044 2482 3865 

— dtowi a nd PR) 24.43 4. 681 4462 1.197 0488 1187 1432 6903 

UK (Q 4082 8563 8988 252S 1413 2429 2721 1043 

CMM (CS) 2348 4539 3838 1.161 0481 1151 1981 5446 

118 (ft 3250 6929 5403 1579 0480 1579 1.771 8421 

Japan (VI 324* 8214 5342 15.79 9582 16793 1749 6847 

Bn 3844 7539 9540 1411 0798 1812 2144 5477 

van par 1 JOOO; Danbti Know. Frandi Franc. H a ia rata Ronar. and tta aarii Ncrar par 10 Belgian Franc, Ea 

■ P-MAHK WT T WB (P44| PM 126,000 par OM ■ M 

Open Lataat Chang# High Low Ed.— Open fed. 

Sm 08342 08334 -04010 06357 06319 39572 999745 Sap 

Dec 0.6345 04331 -04014 04348 0.9320 9423 14471 Oeo 

Mar 09338 09336 32 2486 Mar 

■ —88 WIAMC PUT— W |>4M) SR 125400 par SFr WJR 

Sap 07530 0.7517 -04015 07538 07489 17481 37448 Sap 

Ok 0.7320 Q.75T8 -00017 07533 07615 2447 5506 Dac 


WORLD INTEREST RATES 


Rata 

agrinet Ecu 

Change 
on day 

M+Afrom 
oan. rata 

W apraad 

Dfc. 

tad. 

2.15081 

+000024 

-288 

584 

. 

394483 

-00062 

-180 

014 

14 

181619 

+08001 

-1.72 

486 

- 

0800166 

-0801074 

-186 

484 

7 

tt8tX££l 

♦08093 

042 

2.71 

-4 

195828 

+0800 

1.13 

280 

-8- 

786413 

-00161 

• 181 

• 141 - 

-12 

169.103 

+0848 

3.15 

OOO . 

-22 

290782 

+0.113 

988 

-6.17 


192644 

-88 

738 

-384 •• 

— 

0788834 

+0800383 

038 . 

2.74 

- 


219672 

409123 

144864 

0909628 

659883 

182554 

743679 

154950 


NON BM MBtBERS 

Grasca 284513 290782 +0118 943 

9a * 1783.18 192644 -09 748 

UK 0796748 0798834 40000983 048 . 

Bcu ream ram ret by 8* Boapare Contrarian. Cunraratae ara a draoarto 
Pereariapa cfaangra ara tor Em a peadre danga drama a weak career. 





mount rates 


August 31 

Over 

One 

Urea 

Six 

One 

tomb. 

Ora 

Rapo 


right 


rratra 

mttra 

yrer 

Intar. 

rata 

rata 

Batatet 

41k 

6H 

5*4 

514 

014 

7.40 

480 


weak ago 

<1 

5Vk 

68 

** 

e*k 

7.40 

480 

- 

Rrewa 

« 

5W 

644 

« 

«4 

580 

— 

8.75 

weak ago 

8* 

5*4 

344 

31 

0*4 

580 

- 

073 

Oarmany 

483 

485 

4.85 

5.02 

533 

680 

480 

485 

waak ago 

48a 

4.95 

486 

580 

538 

680 

480 

486 

Ir aland 

49 

6*4 

BA 

04 

74k 


_ 

026 

•reft ago 

*4 

a* 

88 

H 

m 

re 

re 

025 

Mata 

8*4 

n 

8*4 

84 

104k 

re 

7.50 

045 

wrek ago 

BH 

84 

8*4 

8*4 

10* 

— 

780 

885 

MhmupvtRnds 

464 

483 

+89 

5.11 

041 

— 

023 

re 

weak ago 

488 

483 

480 

6.11 

5.43 

— 

585 


(HRBfM 

4 


H 

4*4 

<1 

6825 

380 

- 

weak ago 

314 

H 

414 

4)4 


8823 

380 

- 

US 

4| 

«* 

4« 

6K 

844 

re 

480 

re 

weak ago 

4H 

4« 

*« 

5*4 

514 


480 

_ 

Japan 

2tt 

2*4 

244 

z« 

28 

- 

1.75 

- 

warit ago 

2* 

2*4 

2» 

2H 

28 

- 

1.75 

- 

■ SUBOR FT London 








tataatamkFtadng 

- 

414 

S 

s* 

30 

- 

- 

- 

waak ago 

- 

41k 

6 


58 

- 

- 

- 

US DeBar CDa 

re 

486 

480 

5.07 

5-58 

re 

- 


weak ago 

— 

486 

4.77 

388 

389 

— 

— 

_ 

BORLhM Da 

- 

314 

3* 

3* 

4 

_ 


- 

waak ago 

- 

4* 

414 

414 

414 

- 

- 

- 


I 0MM) Yen 125 par Yen 100 

Change Hfch Low Eat vri Open M. 
•00051 14082 09992 17463 58480 

-04089 14100 14060 2871 1QJB77 

-04092 14140 14140 2 1.718 


M FBW W H 0MM) E82500 pare 

1-5358 15390 -*00019 15968 15332 8428 33484 

15310 15346 *04024 15349 15310 683 1460 


M kO9 B>te Kmi0WM(LHTErDM1ra potato OM 00* 

SaOprfce Orange Mgh Lora Eat Ml Open tat 
8844 -041 8645 9841 11992 143874 

8458 -042 8458 8458 17446 163680 

9458 -043 8451 9457 11328 167884 

8498 -041 8499 9494 6878 100883 

B01OUKA mrJMTd WW1— (UF^ Li 000m potata ol 10094 


far a araancy, red ara mdnun pranhtad r 
P7MQ SHdng red BM*i Lka awpandad ' 


« dariadon of Oia cwrec^a owrttat t 


1 01950 jeaaja par perawt 


Sap 

- CALLS - 
■ Oct 

Nov 

Sap 

— PUTS — 
Oct 

Nov 

880 

■ 029 

032 

- 

- 

012 

388 

686 

6.14 

- 

013 

0L4O 

045 

386 

480 

086 

088 

094 

180 

2.17 

282 

080 

184 

183 

036 

182 

182 

186 

■ 282 

&11 

083 

039 

078 

586 

488 

484 



' Margined Foreign Exchange 
Trading 

Fast Camqpetftive Quotes 24 Hours 
■M: 071-815 0400 orBax 071-329391? 


K i'j >-'■» i t; :ki 


1580 056 142 152 156 -252 & 

1579 043 059 078 345 458 4, 

nadoua dayv vd. Cd* M<7Raa 11 .118. Rre.dW* open k&. CaR 8BQ714 Ana 420481 


- TRADERS - CORPORATE TREASURERS 

SATQUOTE™ - Your single service for real time quotes. 
Futures ^ * Options * Stocks * Forex * News : *' ViaSatdlit^ 

LONDON +71 329 3377 

LORDON -map 3377 me w fO KK ian 


l . 1 1 : hi 


UK INTEREST RATES 



Sao prim 

Chratga 


Low 

Era. vri 

Opanhtt. 

9188 

+081 

91.12 

9180 

3778 

22827 

8012 

+083 

00.19 

0889 

4^6 

55914 

0988 

+007 

8889 

0980 

1242 

17079 

08.10 

+080 

08.15 

0989 

377 

13010 


imrtrankSwing 5^ -44. 4 « - «A 5^-4% 5j-« 6&-5B aH-fiQ 
SW*«COB - 4J1-4S B&-5H Sl-5%- ea-BS 

Traaaay BMa 4%-4H$J-5ft 

Bank BBa 5A-54 6U-6% 

Uxd auttntty dapa. - A& 4fi-4£ 5-4% 5^-5^ R-B - SH 

Obcaad IMrat dapa 5^«-43i AM ■ 

UK ti raring eank hare landtag iMa 6S» pre cad tom Rdauay A 18M 

Up to 1 1-3 3* M 9-12 


J 


88 DOVEKSEBEBT, LONDON ^ WB SBB 
THc 07108 1188 EA& 07149$ 0022 


l WHBMI 8Rim potato ol 100% 


FOR TRADERS ON THE MOVE 

Watcbtbe maxima move wttb tbe serpen fn yaar podad that raostves 
Cremncy. Rdnres, bxBce* aodNem qpdates 24 boor* a. (toy. For your 7 day 
free trial. caS Pntnras P«*er Lid on 071-895 9400 rarer. 



Open 

Sad price 

Change 

Htah 

Low 

EaL vri 

Op<nM. 

Sap 

9588 

9686 

•081 

8589 

new* 

1383 

10901 

Dac 

9634 

9339 

■003 

9687 

9654 

2847 

13738 

Mar 

96.11 

95L06 

•005 

95.12 

8587 

800 

11808 

Jun 

NfaTB 

94.77 . 

-003 04+82 94*77 278 

5695 


Open 

Sad price 

Change rttfi Lew EaL vri 

Opentri. 

Sap 

9485 

04.03 

■087 

8486 

M.OO 

1021 

9480 

Dac 

8334 

9383 

-080 

9386 

9380 

638 

7875 

Mar 

93.19 

83.18 

-007 

9322 

83.17 

279 

4200 

Jun 

6281 

9078 

-089 

9281 

9281 

40 

1395 


FUTURES PAGER I 



8498 9497 
9358 8340 
8258 8271 
8215 9210 


BCU 1*4*4 Da add raaaar 1 nft 9H; 3 naha: 0% a nw* 4H; 1 pare 8H. S UBCR koaraari, Mag 
re ara arena ram tor CiOm quMM to Bra maure by •» tdagiea bad* at Itara aacb ant i ng 
re lira mre are Barren That Bank of Ibfcyrv B rew and MWanar Waaan*rear. 

Md rrew n ahore In BM dstraatt: treray Hrera, U8 3 COa ana son UM Oapre* M. 

KURO CURRENCY I N T ERES T RATES 

Aua 31 Short 7 day* Orta Tima Sbt Ora 


Mgh 

Low 

EaL ral 

OpaninL 

9429 

9488 

0083 

89137 

9043 

9550 

10605 

102772 

92.73 

9288 

4723 

67B19 

92.19 
w day. 

92.14 

2046 

52786 


FullerMoney - the Global Strategy Newsletter 


Aug an 

Short 

7<taya 

Om 


tarm 

rwka 

north 

Morin (tec 

4^-4ki 

5-4% 

3*1 - 3 

Danrih Krana 

5% -AM 

A‘SM 

0-0% 


■ THH 

■rnmii 

Open 

Lataat 

8R0MM)S1ni potato 
Ctranga Hgh 

Sep 

9486 

9486 

+081 

9456 

Dac 

9459 

9480 

+0.01 

9481 

Mar 

9483 

9484 

+081 

9486 


Law Eat. vd Open kw. 

9446 28511 404586 

8498 62577 <87.182 


Bdglan Franc **t - <V *-A\ R-8 5>j - 5>» 

CMdiKim 5*1 ■ 4 V 5V-5V 6-5*2 6*2-6^ 

D-Uartt *tt-4U 4Q-4I1 «a-4» 6. AM 

Dutch Olddar 4%-4\ 4H-4tt 4%-4l| 5-4% 

Ranch Franc 3% - 5% U-8& 3h-5% 5% - 5% 

Porftgoaan Eac 12% - 11% 10% - 10 llh - « 1lV - lilt 
Sprtn Pwaara 7& - 7 A 7fi - 7£ ts, - 7i* ri-rM 

Staring 4% -AH 4» - 4» 5i -6i 6JJ - Sfi 

9a4n Ffrec 4-3% 4%-3% <4 - *A 

Cml Dolar 5% - 6A 5A - 5% 5^*-5li 5*2-5% 

US Defer 4%. 4% 4%. AM 4% -AM 5-4% 

Manure 8-7% 8% - 8% BA - 8& 0&-8& 

Yen 2d * 2% 2% - 2d 2% - 2* 2% . 2& 

AdreSShg 3% • 3% 3%-3% < A-4A *M -4% 

Orel rare aam an od tar tfw US Oca* red Yan, sdm (wo dan' re 


5% - A 
7%-7 
5»»- 8 

5A-6A 
sa-5H 
11 % - 11 % 
8A -8% 
6-53 
4lj.4% 

6-5% 
SA-5A 
9A-9A 
2B-2B 
5 d-sd 


8S-6V 

7%-7% 

SM-SM 

SH-Sfi 

6%-e% 

na-iiA 

3%-BS, 

B%-8% 

4S-4S 

ea-oa 
sa-sa 
10 % • 10 % 

«W'5» 


I PD Sim par IQOW 


9597 9538 
8454 9454 
9454 5454 


9547 9558 1950 12J58 

9455 9454 822 10449 

9454 9454 35 3581 








( age. rea tar prawua day 
K OP r mm AffrgDMIm pataa at 100K 




State 

Plica 

Sta 

OCt 

CALLS - 
Nov 

Deo 

Sep 

Oct 

pure — 

NOV 

Dac 

9000 

007 

atos 

009 

an 

083 

017 

021 

023 

■wan 

am 


a os 

ao* 

022 

059 

040 

041 

0090 

a 

0 

am 

002 

046 

wag 

063 

084 




■Ultra P880K WnuWKS wm Prato totartranfc otta rad am 


Open 

Sett price 

Change 

Mrfi 

Low 

9423 

9427 

-085 

9429 

9422 

93.78 

9003 

-089 

9386 

99.77 

9X45 

9049 

-an 

8382 

9045 

9323 

8320 

■012 


83.17 


Open tot 

43460 

44984 

28942 

27902 


t MOUTH eU H OPQtmB (UFFg* 61m poWe ot 100H 


Ere. re. Hat. CMb BSia ta SOie. nartare d^ apre M. (»ta 34883B WIM 17B77 
SM8S HIBNC araOHB OJFFQ SR 1m pobn or 1Q0W 


State CALLS — — — PUIS 

Price Sep Oeo Mar Sap Dae . Mar- 

9880 aiB am ais acn ; 09Z 05fi 

9676 003 003 056 010 043 072 

9600 am am : ao3 as 057 ass 

Ere re. ratal cm sao Pun im retaa ogi open h. cm* «h nre uia . 



Qpan 

Salt price 

Cnraiga 

rtgft 

Low 

EaL vri 

Open InL 

Sap 

, 

94.90 

- 

- 

- 

0 

3810 

Daa 

9421 

9429 

4X01 

9481 

9481 

5 ' 

1967 

Mar 

. 

9483 

-OOI 

- 

- 

0 

1438 

Jun 

■ 

93.70 

■081 

- 

- 

0 

334 


Mam&Ccnarany — 595 

AMadTudBank 595 

AS Bank .525 

•HnyAnabachsr 525 

Baric el Sanda 695 

. Sraraa SBrao Wzapa- 525 

BaricriCypnra 525 

Baric d inland 525 

Barit of toda. — _ — 695 

Sorted Seated ,595 

SantayaBartt- 395 

atfikoTUdEad 595 

•teanShplwSCe 1*525 
CLte*Nadated_ 525 

Ctared NA 525 

CytaeddaBard 393 

TTra CoopraaNa Bark. 325 

Count* CD 525 

Cradtljcrafc .525 

Cypua Popular Bra* _52S 


« 

Duran Larata 525 

Cre ta r B a rit mdod _ 625 
ArandritareBartc- 8 
•RdretRarring 5 Co _ 125 

Qntaard 595 

•Gukawealteon 995 

Harib BtritAG 2ldA .595 
BHamtarta Bar* 595 

Haridta&QPntav'Bk.aS 

MSred 525 

C.Hoam&Oo_ _S95 

HapenpiaraUdSe 

Jidan Hodga Bn 59S 

•LacpddJoaaph& Sons 595 

Uoyda Baric 525 

Matfaaf Bank Ud __595 

Udand Barit 595 

• Mart Barring- 6 

•Ran Srataara GIT. 525 


HdutfaGwulra 

CcapaateLMtadfane 


ibadgltoUbi 8 

Ftojri Btofaooaand _ E25 
BSMBtft WBnranSaea. 595 

T8B — 625 

•UNMBK«Kireril„ 695 
U%Ttari Baric Rc_ 525 
Wo d flul Trad 625 

Wi ta rareyld a re r 595 

Write Barit 695 

• Iteabers of London 
liraaataiMiH Banking 




One Chart Equals One Hundred Stories 





^ -FOREX -METALS -BONDS -SOFTS 

f" ^ Objctfivc analysis for professional investors 

tO 0962 879764 

K I \ I) He,;-. 2 : .'.Tch'.stv' 

H-'ils S022 5=H F;x 042- 77-CF7 





















financial times 


Thursday September i 1994 








1 — . 

I 4 X 

z 

ZB 

z 

ZS 

r 

SJ 


IX 


IX 

man 

2-0 


X 4 


JX 


9.1 

___ 

IX 


2.1 


7J 

| 

4 2 

— 



„ 



IX 


IX 

| 

2-0 

M| 

u 



u 


1 ZJS 

— . 

u 


as 


4.7 

— 


9 


i 45 


122 


1 IX 


i u 


t ax 


) 29 


1 32 

_ 

) B-2 


i 04 

mmtm 

ai 


1 3-D 

- - 

1 43 



m i* 

14UB 1 2 

700 1 J 
1.40a za 
1 JK 3 zo 
1Z3 — 

I, 429 42 
3J80 — 

IBS &0 

ijbi _ 

II. 13 0.4 
5.160 OS 
1.680 22 


-3 370 520 
— 1,830 1,569 
412 877 KM 
-101 VO 1.730 
+2 833 250 
+91 930 748 
+40 2 . 4801,700 
-40 2.780 2,190 
-2 097 732 
-19 749 005 




1 2 S 


i 45 

z 

i ax 

_ IM 

1 41 


40 


3.0 


42 


44 


&4 


42 


43 

_ 

23 


46 

— 

Z2 


2 A 


IS 


as 

__ 

DA 


OX 


X8 


52 


2.7 

ll 

22 



Z 72 4.1 
130 05 
1-60 _ 
125 1.1 
77 _ 
100 14 
280 1.7 
88 88 
206 18 
140 02 
211 13 
135 33 
74 2 A 
72 24 
72 84 
13 
U 


22 


04 


3-5 


0-7 


02 


02 


02 


24 

— 


21 


46 


U 


82 


40 


21 


5J 

__ 

107 


32 


25 


2D 


41 


12 


32 


24 


46 


11-7 


3-5 


72 


22 

,, 

20 


21 

__ 

12 

— 




23 

+40 20 & 1 &-SQ- 43 
+31270 L 27 B 23 
+14 4 SS S 4 B 2.1 
-3030090 201 13 
388 881 6.7 
896 419 SlI 


52 

___ 

1.7 



22 

-- 

32 


23 

_■ 

72 

_ 

7-0 



m 


in -2 21s 

348 -X 372 

129 +1 165 

127 +1 155 

+2 188 
+5 158 
44 164 
-2 106 
♦1 143 
_ 142 
-40 73 


’is 

153 

484 

440 

03 

SO 

84 

100 

1 « 

146 


INDICES 


tm 


m 




Tf» 


-*3 


23Z 


S 




i 


H 











H 9 f 

Lea/ 

31 

* 

a 

W» 

lav 


* 


Caoenl 0/077) 


$6 2096433 20796155 2547040 1 BC 17756 V 20 M 


PC ftar 18791 


M 273234 274595 2661.17 B /2 


acmmibkvuki tom aiws 21113 234030 32 

N IMdl/UBQ HJW.fi 19823 10773 108.10 372 

knots 

OaA XBMSQnSM) 4222 } 42030 42229 4 BB 6 B 2/2 

Tndad laMZ/Un) 114570 113 B 31 t 114937 B B 8 1/2 


9020(1/1*1) 


tM3a Mtt»+p97S) 

QnqnKBf {1979 

nw*P§§i wn 

am 

PSA Gm pi/ 12 ®? 


148139 1470X0 147979 1542X5 « 

M 537973 532313 5388830 229 

M 404335 4050.15 4905V 26* 

66 433370 433240 VOMO 230 

* 209273 209510 VMM 1« 


19572Q Z7H 

50UB » 


39397 2218 
W11V S8 


320309 20/4 
8603V 24* 

1053.17 SB/7 


CSS TWn&nfnl 83) 4450 4431 4453 45U0 3171 
CBSmStr&tBSl 28t0 2STX 2839 2MV 31/1 


40B3B 21* 

257V 21* 


0n.«tU7« 


2143V 2132X2 2141V 


Q6oSE|M(2/U83) 113332 113449 1137V 121130 2B2 


I Con (2/1*5) 3112V 310407 309227 330337 Aft 


PGAGmpi/T2A9 W <78Q - 7 t «7V 4H 

Dawk 

OgUMgeOgnas 353V 33301 96009 41579 2f2 

KXGmdpft'IMO) 19531 19344 19*35 W12V 4fi 

SSSopVTZW 137335 TS73X7 138Q2( WVV Zfl 

C9C40pi/iaB7) 2089X8 209037 SOTSST *«« W 


ftztmsnram sum bixj Jgf*,???!" 5 

OMMU/aSSI 23538 23933 2355X MBV 35 
B12* 2191.18 Ml MS 


1295V *7 
186318 V7 

75751 27/6 
94330 27* 
1966X2 20* 


Van 56(31/124X1 8*344 84523 86M6 WW 1»1 tmnr 2X 

wav 966356 8399V «01V 4/1 09344 4S 

SlSinsflfffl 45031 B » 161110 ** 81 

XtaM^nlW««a smv 50309 6D776 «M9 S/I 4 * 3Z ™ 

mtaunmiwro? Bitty* TOOpfi/HWO 14K5B 1401V V 154319 31/1 130348 21* 

SLmaum MH5JS 190077 1870X6 MV 20/1 WW W By Tjp-IW pBMCt 123838 12MS 124255 ttlXI 2 C 1143V 21* - 

GEgOmfttfftg wm " JCoeDgn (31/12AQ ft 33551 32320 *319 W 293V 21* 

*■> MipBntfTVq 13537 193V 134V 183B1 Oft 141V BM 

ssssr “ " ™ «s s »gsifs” g™“ 

WBVMftvu"/ opsn Sad Prfoa Change High Low Ert. vol Opan fra 

WF « MSB? 12 2050042 CTS* 13ft *»» £ tag' 20427) 20600 +&.1 2071J) 2042JJ 24560 8X87 

»16 2*3* *171 13« 2BBa4rt Sap 20S1J) 20700 +11* 20800 20500 20DW 38,054 

jS £5 VMS* “JS Oct 20615 20300 +105 2084 J) 20017$ - 2*67 

wsISSww 2423* aw* *«* » i*a»4n op* hm «« iw m. a* 

JJf^jLaS^a H 113001 112037 1*448 Srt “** w 

ho., onu, Krtm com Q 941X8- BMtrtatfri hdteaa m 100 wc tanA M (Mtay T CowVon. * CrienUd * ttV OMT. • 
- Sal Aw zr: W«n Prt» SBRS*. CAC4& Eac TflP-IOft BED Omt Taram GoipAMli & 4 lha 01 k>3 Wa 6— Iwl d^> h»» 

300;4tnn8l? l *^55f B '.S+rSaiiiicAw^-a9«*HYS6VOawnicii-aMd »n ^ ri wdPQa%-i3 8i »*; »it naii» aaua i*ft wbm w 

llww^ntf DW- •* Vw-liaw* 31 .aPJB+ia Mag ta flay. fm» Ipm >i HwdMt ar> 


8X4(1977) 295BX 29534 29C2 3928V 19* 

SBM-S)nB(2W79 57047 357V 5BR12 641X1 4/1 

Sob* mea 

JSEGEtd (V978) 2Z87Xf 2297X 22350 233LV 4/1 

J5EM.PBV79) 65350tf 85330 flBDQD S7E7V 15* 

SMfa Rna 

ltoBAnpB6«n*{r 94423 806X5 839X1 BK25 2/Z 

ft** 

IVMSEpVKOft 312X2 3(319 3M47 393* 31/1 

Wal l'Ll an (1037) 14525 1451 X 14623 M63V 31/1 

sStoBcM 01/1359) 125350 125316 1V9V 142534 31/1 

SC Qnxtf (1/VS7) 94027 937V 933(0 108329 3V1 

«StoPCjpQtSnV‘ 700311 6990V 704052 7W0V 290 

IkVnd 

ftnyMl SET 0DW75) 1524X3 149253 140024 17*73 4/1 


1743V 14/2 
5449V 19/1 


1*297 187 
88310 13 fT 


US INDICES 


1994 

HV IV 


Hbttttt 331720 399595 39B1V 3973* 358325 3673* 41V 

PI/1) m P1/1W (2/7*3 

ftaw BooA 9300 97V 97V 105X1 9343 10977 54V 

(21/1) (13/9 (18/1093) (1/1061) 

ImpM 1631X4 1826X2 1614.40 1902V 154302 198229 1U2 

(213 (20/fl C2®W) (57/33 

IBUa 199V 189X3 188.44 2Z7V 17371 *640 10V 

(3X| 04*1 PI*®) (S/4/33 

DJ tad. Drrfn tap 3834.14 PBZ7.34 ) Low 3SmX4 (388830 ) ( Rwnnt l c Hf J 

Boy'S N0I 382054 (3911V ) Lew 388832 (3881 V ) (Aetna**) 

Qnpato 1 476X7 47458 473V 482V 438X2 482X0 4.40 

(ZfiS (4/fl (20®* n*W5 

MA&fif 59V 556V 55521 586* 910V 599X9 2* 

p/2j put) pom onisq 

FtacU 48V 46V 49V 48X4 41V 4649 8X4 

(Wft (4/4) P8*W) fl/1074} 

KIS coop. 28210 261V V0X2 28721 24214 2H7J1 AM 

05 W (2/Z/34) (2SW43 

taHHW 4SV 451.46 4425 487V 422X7 457X9 29X1 

m (2MB 02*4) (VHW3 

NASOUCnp 78646 753X1 76294 90U3 5S3J9 163X3 54X7 

(18/3) (MX) (19094 p1fi 0/72) 


Ai« 26 . Aug 19 Aug 12 Year ago 
Dow Jones Ind Ov. Yield 2-64 2.73 2.70 2X0 

Am 24 Aug 17 Aug 10 Year ago 
S&PInd. On. yield 2X7 243 242 246 

S&PbKLP* ratio 20-73 ZS-51 23X5 27X8 


Is this your own 
copy of the 
Financial Times? 


Or do you rely on seeing someone else*:? Every 
day die FT reports on the topics that matter to people 
doing business every day, in and from Europe. 

We cover the latest European. U.S. and inter- 
national news, and analyse the implications from a 
European perspective. In fact you'll find far more than 
finance in the FT. 

No surprise then, that the Financial Times is 
read by more top business executives in Europe than any 
other publication.* 

Make sure you're one of them by getting your 
own copy of the newspaper delivered daily to your office. 

•SMtrEHRSIW} 


FT 


tanMCbppn wse) 


Z5ZBZ43 S40UB2B3215J 


M3CsMU(1/l/ntl MU* 6410 6412 94140 31* 


S & P ind. Ow. yield 2X7 243 2X2 2X6 

SAP ind PC ratio 20-73 23X1 23X5 27X8 

91 8TAHDAHD AMP POQ8» BOO WOP WmjWS® SSOO ttnea Index 

Opal Latest Change high Low EstwdL Opanirt 
Sap 476.15 475X0 -Q.B5 47&40 47X45 64.1V 137,188 

Dee 478.40 478X0 -0.70 478.40 478X0 6,407 49.120 

Mar * 481.75 - - 481.7? 97 4X84 

Opn tamt Sgnto » tar mm day. 

■ NEW YORK ACITW STOCKS ■ TRADOM ACnVTTT 


^ 

SUBSCRIBE NOW AND GET THE FIRST 12 ISSUES FREE. 

To: Gillian Han. Financial Times (Europe) GmbH, Nibeiungeoplau 3. 60318 FranLtun/Marn. Germany. 
TeL + 49 69 1 56 VO. Tlx. 4161 93. F$x. + 49 69 596 4483. 

YES. I would tike » subscribe to the Huron) Him. and enjoy my firs 12 issues free. I will allow up 10 21 Jays 
before delivery of my firs copy. Please enter my subscription for 12 months a Ac following rale*. 

Anuria OES5X00 Fixe FR42JM0 Netherlands DFL875 Sweden SEX 3X30 

Belgium BF8I3J00 Germany DM 750 Norway NOK3220 Swiacriand SFR710 
Denmark DXK3JOO ItUy LIT 600000 Pcnugal ESC 60,00(1 

Fmhnd FMK2XQ0 lauembourg LFR 13500 Spain PTS63XOO 

For mbscriptioft* inTiakey. Cyprus. Oraecc. Maha. please comaci +32 3 513 28 16- 


□ Bill rn OBcge nty American EapiesVDincn Ctub/ 
me I — 1 Euncard/Visa Account 


Expiry Dale . 


Trusty SWks Ctasa 000* * W™ tra*ty 

MV prise anty A* 30 At* 29 A* 2S 

iURMM W36.M0 6* +* 1ak * “ “K2 a 5S2l 

tXC *W SL12**300 1034 +14 *•“ 1S - 17 7 18.190 17X60 

TsUns 4J84V0 OSm -* MfflS Zkffl «M 2SS3 

US SU0CS 3X08X00 25ft +1M NYSE 

Mebi 3 JB& 20 D 22H +ft Issues Ttytsf 2X5S 2X56 2X71 

Comp* 2Jfe200 38ft -M Kw 1276 12* 1X84 

Font 2X74X00 30H +H Ms 837 897 088 

McDaotfs 2X07X00 28 +K Undangsd 748 729 7D1 

Match 2X59200 Z5M +M Non Hgte 94 « 80 

Mana 2287X00 24ft +6 New Louq 21 V V 

ButaUtag bend*. » tafcumi pka UHm, FbuncM md Itensooramcn. 
and tow* am me a*ngaa el ew N(pe« and IwwU prim rmetad rtetag As day by rash 
ms MW By nutaaty nprsaam vu W0uu and lewMt Hw tie Indn has raadud 

PWUBUI tys). V Stfyg IP tfteM raeuatwen. 


* Currency nua art oriy wBdfirr ike crmiary m n •Hkh they are quoted. Subscription Pricer are correct ttt rime cf 
Xoi/tJt to press. Prices art tidarive of VAT in all EU countries except Germany and France. FT WT No. 
DEI 14220192 . 

To sab m a t e to the FT fa North America eoaraa New Vast Tel 7524500. Fax 3062397, Fer East contact Tokyo 
Tel 32951711, Fte 2299712. 


□ Hmie «* hat tar mote ufcnMuan abeU 6 sad 24 math utynpwn tales, or raa to 
■ eemay tw fated eppaty. 


bsun TAdtf 2X59 2X56 2X71 

Rises 1278 12* 1X84 

Fafa 837 897 680 

Undangsd 748 729 7D1 

NBuHglB 94 « 80 

New Lows 21 V 28 


LJ seenayaM fated eppaty. 
iPteasr tpecjf) - 


Cutap^y . - 

Adtboi B Midi 1 wnold Ur ay Fiueeal Tna rkfavaeft 


D S ASTER 

!*! 

2 Keeping an eye out for you. 


Pulse. 


• :-:3t;?n - ran t r-t » ff -; o“'CC. or weres. *.“Cf£ s r.o :s# to ct‘. ‘o - 
o 30 r - t ■ j ; 2 t Lo-;r^, d hc.i -K t-r-Ms: r (o.-or.ic'ni (c go*, a rco--. the u::rra:e 

3 1 v.v.n a Paiso :r yri;.- pa;-:-:-;, yc-uve i.vO'.-s ot? ::(r?;h.r.: •; c!rg en to. 

FANCY A FREE TRIAL? CALL 0200 222826- Ext. 133 NOW. 


►PU LSE 


Hutchison 

Telecom 



1l|nam 

N* srrirr oropird *"ffc<wt a dynawrr 


Finandafl Times. Europe’s Business Newspaper. 























































34 


FINANCIAL TIMES THURSDAY SEPTEMBER 1 1994 


NEW YORK STOCK EXCHANGE COMPOSITE PRICES 


w rr & eta 

« I ran Hgb IM DM 

0.40 304SO 41 13%<M% 13% 


17% 13% MR 
15% 12% ALLabaA 
75% 57% AW 

72% 52% AMR 
5 3%ARX 
56% 38% ASA 
31% 2S%AbML 
14% 11%AMUPr 
23% 17% AM M 
14% 11%fl«ta*l 
31 22% ACE Ltd 

12% 9%A»GKHx 1.0911.1 
10% 7% ACM GvOpc 1 aso TOO 
10% 7%«*IC»1Spi 08612.4 
12 8? ACM (M Sax 109113 
11% S% MM Unix 108112 
9% SACMItaUi 0.72 90 
15% B% AeewOV 044 3J5 15 
9% 5% Acme Bed 7 

zs% 23Aarabx an 20 13 

13% 5% Aetna 030 27 3 786 
15% 11% A EM 107 209 

l8%16%MaaG«r 0.48 2.7 0 10 
54 46% MHni 2.00 5.1 212 S 


0.10 10 36 206 16% 15% 15*2 

108 29 25 8042 73% 73% 73% 

105 3909 90% 50% 60% 

13 223 4 4 4 

300 40 32 1029 40% 

an Z5 17 7755 30% 

050 35 10 200 14% 

15! 23 15 22% 

28 Z77in5% 

0.44 10 28 207 23% 

1010 
121 



31% 16%M»tfiC 
6% sxdnmcap 
20 15 Admlnc 

50% 49%AnaiA0R 
05% «ArtHL 
36% 25% AO* 

22% 18% ABraran 
4 1% Mean be 
50% 38? AbftC 
39% 26% Attn Fit x 030 14) IB 2128 


8 

s 
a 

14 
IT? 

300 10.4 12 7996 29% 28% a? 
0.16 IB 8 100 6% 5% 5% 
0.10 0.6120 233 18% 16 IB 
1.47 20 12 44 57% 58% 60% 

2.78 50 7 2470 50% 48% 40% 
0.46 10 18 1161 36 35% 35? 

088 40 18 1501 22% 21% 22% 

1 34 1% 1% 1% 
098 20 27 052 48% 49% 49% 

' 29% 30% - 



19%A89Btac 43 50G 25% 24% 24% 

16% 14% Alton 104110 12 11 16% 1B% 18% 

29% 21%AITd1 18536 20 28% 28% 

18? 13%JU39aA6 020 1.1 20 400 17% 17% 17% 

21% l6%A8»pytotx 005 20 30 510 17% 171, 


17% 13% nml 
25% 19% ADOS 
22% 17? AEabrA 
30? 25% AKsn 
26% 1»%AknN 
65% 49*2 Alcoa 
30% 23% AiwBnmn 
22% 14 AleiMx 


020 10 832 15% 

008 10 18 54 24 23* 

028 10 18 10 22 21* 

044 1.5 23 2590 29% 2S*. 

030 10 7D852Bu26% 25% 28 

100 10 45 928 065% 65% 65% 
070 24 5 234 26% 28% 28% 
010 115120 350 20% 20% 20* 



24% 17AfegHUMx 048 20 20 890 21* 
»%:o%Aiatf 
19*4 13*2 AM Con 
ZB SOAMiganx 
4% 1 Allan 

77% 17% After 
10% BttnS 
77% 2l%Mdttnx 
40% 33% AkSO 
29*J MMMCmx 
7 4%A8nnsto 
31% 21% Mum 

S 64% AIM 
20% Met Gp A 
11% 7%*nGMhc 
■% 6% Am Proto 
6% 6%ftn»Gd 



37% 77%) 

33% 25% Am&pr 
30% 74? ArtM 
9% 6 Ant Gun In 

27% 22 Aa HOtiPr 

20% 16% Aa Hadtga 
65% 55% Aortane 
2? 2% Aw Hot* 
96? 81% A*M X 
11% 7 An Opp be 

30 23% AxPran 
34 is An Prana 
8% 7% Am tad Ei 
27% 21 AnfiBX 


43% 38% Amrfcft 
43% 34% Ammn toe 



. a% 

21 21% 

104 70 11 948 22% 22% 22% 
016 08 16 431 HI 9% 19% 19% 
044 10 17 490 27% 77% 27% 
1 120 1% 1% 1% 
1 64 70 23 2S9 22% 21% 22% 
018 10 210 10% 10 10% 
090 IB 14 20 24% 23% 

087 10 8 5168 38 " 

008 32 20 1068 28% _ . _ 

25 1361 6% 6% $% 
11 1821 30% 30% 30% 
100 1.9131 5210084% 82% 84 

43 1717 23% 23% 23*2 
008 110 321 8% 7% 8% 

005 30 24 29 77 

008 10 17 1807 

25% 20AmcWMxO52 24 14 18 21 

52% 44 Amdahl 000 10 51 W66 50' 

9? 8% AmA4R 004 27 307 

31 20*2 An Banfck O10 0.4 302Q2S8 
37% 29% ADAM 200 18 10 8882 
25% 18% A* Box Mx 000 37 13 2121 

8 6% Am Caf) IE 066 OB 254 

20% 17% Am daft! 104 80 21 2 

23% 19% An On CV 1.08 04 0 21 

96? 42%AnCnnx 105 10 55 4288 
240 70 18 40*9 
080 02 1212711 
1.18 30 25 3096 
077114 420 

200102 B 179 22% 

086 30 11 110 18% 

702 40 12 3238 59% 

075 208 9 X100 2% _ 

046 OS 18 3474 95% 93% 

100 12.7 230 7% 7% 

008 14 220 26% 28% 28% 

040 10 B 7S6 26% 26% 28% 

044 13 6 106 6% 8% 8% 

048 10 7 2968 25% 24% 25% 

22% 1BAmMdr9% 105 05 220 19% 19% 19% 

32% 28% An Wft 1.08 19 12 271 27% 27% 27% 

102 40 14 4081 41% 

108 35 5 60 98% 

024 10180 172 
220 30 IS 8772 
OID 10 8 21 
012 20108 382 
1.40 40 10 1048 
101153 

030 08 66 1458 47% 48% 

31 1419 37% 32' 

094 14 25 22 77% 27 
100 29 25 3597 64*2 
207108 3 23% 

. - . IS 36 23% _ _ 

18% I4%*j*wyhx 044 1617 IM 16% '16% 16% 

35% 30 flea CD 108 17 81873 35 34 34% 

29% 22% Apatite bp 028 1.1 X4Z75 3% 28% 23% 

10% 9%Apu WmF 074 70 441 8% 89% 0% 

S 14*» APH 35 11* 2D*2 20 20% 

4A«*JMl(j 1 149 4% 4% 4% 

18% AppIPbA 012 OS 35 12 22% 22% 22% 

21% ArCbOn OID 04 18 3078 €B> ~ 

50% 43% ARoOwnl 250 5.1 21 236 49 
51? 46*2*Beo40>* 400 17 HOD “ 

6% 4% Anna 3 1709 

29 23%Moo2lPi 110 08 6 . 

57% 43%Ann*W 108 16 38 685 49% 48% 

45% 33% ArrowEtoc 151108 38 38% 

' “ 2 2 5% 5% 5% 

On 11 13 741 24% 24% 24% 

0.40 10 84 1774 3S% 29% 30% 

31% 2!% AtfdCMx 040 18 12 IIS 31% 29% 30% 

44% 33% taMM 100 20 13 9*7 37% 37% 87% 

" 027 14 380 19% 1B% 19% 

008107 2 51 2% 2% 2% 

012 04 21 33 31% 31% 31% 

182 14 13888 55% 54% 54% 

200 1.1 2 246251% 251% 

208 Oi 14 88 32% 32% 32% 

008 40 6 3 5% 5% 5% 

15* OB 9 6B2 17% 17% 17% 

550 51184 3187 107% 106% 107% 

... 0 217 8% 5% 5% 

20% 18%AM0Sfrgy( 0B8 52 1 30 17 10% >7 

12% 8% AMfeAOR 084 30 10 288 8% 8% 8% 


16? 11% 

61% 53% 

9% 6% Axvcaftt 
4% 3% Aim fee 

i$n%An*o 

29% 24% flnoaSra 
55% 47%Alflia 
26%25%fl«PW« 
34 i9%Artwnt 

If 




as 


7% 4% Ana Grp 
33% 23% AMI M 
31% 21%/ 


25% Tfl%JUaPaeF 
3*7 1? ASHllMr 
37 26%AnMGaa 
57% 49% ATM 
26ft 225*; MRfcB 2 
38? 31% MW* Cm 
9% 5%AMaSru 
21% *}«»**» 
ID? B<i«M 
10 4 % 


24% 17£i 
12% 8% AmtnaFd 
55% 47%AuMl 

art* 13% Awnca 

19 7% MM 
45 30?A»n« 

61% *8%AwaP7 
14% 10% ApBlCtop 
r% 5%A» 


016 0 7 78 507 73% 
010 09 240 T - 

On 1.1 24 1874 54 
044 18 11 14 10 . 

DM 04 4 635 10% 
On 10 20 708 37% 
200 14 17 SIB 80 


23 


- B - 



• 6 10% 10% 10% 
□ 527 6% 8% 5% 


36% 31% BCE 268 

9% 6% HI ADR 021 

5% jRUtox 020 
17% lMiBatarNnl 040 

22% 17BMH 046 

27% 21% BMOwQc 040 
30% •4%MCpl on 
15% 3% BUM 005 
9% 

25% 20*; UBX 102 
art. T37,BHBnWp 020 
JS »l| SncOto 104 
25% 20% Brad \r 114 
11% 9% BmcoGtar 072 
M? 27 BosHtMd 104 
1% iBmTbxh 
83% 49*| BftXtog 070 
50% 38% BankAm » 1.00 

96 A4? Bank Oral 556 
3% 22% BUtti 088 
49% *5? BkBcewp 101 
33% 25 RnMff 1.10 

50*; 47BMABA 125 
R5 80% BftAABI B ODD 
<U%U%MT9 180 
30% 30 Beta i 108 

30% 22 % bm row on 
38 29*; Berne* Grp x 1-40 
*8% 39% Itontih 1.94 
11% 8% BAM 005 
53 j 34% BiW9 1 OH 

28% 21%9axbrx 106 

28% 23% Bay SI Gat 1*6 
22%18%0ani6» 1.72 
23% 15% ears*™ on 
50% <6?NtoSPM 203 
37% 27% BwtiBi 004 
29% 23B4dumn 040 
44% 34% BectnD 0.74 



TECMniDErilUrilRHB RS UH 


Samsung Notebook PC 



S0466SX/25 MHz 
Removable HDD 
Inter Kev Mouse 




uemowes 


1H4 

wn t*»»tii 
7% SBadPT 
59% 488*1*0 
19% 14*2 Ml* 

93% 53BM3H 
55 43%MA 
25*2 20*2 taldi 
68 58%Hemf4L3Px 

1% V BteguuB 

18? I3%0em» 

iMBlSlOOBamH 

10% 8 Berry 

37% 19 Bern Buy 

28% 2B%BaftStl 

05% 61*2 BMMnPI 
24% 16% Beto9t 
53% 42% Betz L 
16% 11% BarEnt 
21% 11% Bbenft 

ib^mS?“ S 

22% IS Oft* HR. 

10% s%Bamhw 
8% 0%8UmMnB 
10% 8%BtolacVT9t 
48% 37% Bock 
31% 23%BW*U 
8% 6%Bto*Cl* 
28% 19% BUlRI 
50% 42% BaWp 
29% iBBateG 
21% lOBatB&N 
20? 9%0entiChn 
18% i1%0Enkm 
22 18% Bate Cnt 
28% 20%8BMBr 
38% 18% Oral Fid 
34% 30BflEPTCp 
90% 68% BrffiSx 
33% 19%&Hwtol 
59% 50% ftMfSq 
74% 56%BrAlr 
54% 39HGR4 
77% 55%BPX 
27 19%BPPradhoe 
25% 18BSM 
71% 53% 87 
28% 22%a*aU 
38% 32%ftan0p 
B 5%BnmSi 

30% 20%BnFMx 
32% 24%BrfftT 
4% 3*2 ART 
25% i7%Braankx 
18% 13% Bra* WaS 
41 35% Buchan Pi 
28% 16% BulQH 

66% 47% Bum x 
48% 37% Alt! ABC 
19% 16% Burton Pc 


Hgb lew a* Eta 

54% 54% 54% 


18 N. ft 
on % e i an 

036 50 3 3 

JUG 50 18 20(8 
040 11 17 182 19% 18 18% 

208 40 28 36» 60% 88% 60% 

000 10 22 US 48% 48% 48% 

054 20 27 782 ZS% 24% 24% 

430 70 2 57% ST 57% 

1J2 40 13 B27n43% 42% 43 

047 10 18 2 31 31 31 

0.04 40 17 284 % a % 


0.48 12 20 3Z7 


15 15 -% 




49 z5fl 18850 18100 18100 -750 
0.40 4.1 34 131 9% 

22 6282 38% 

200 10 53 27% 

500 93 28 53% 

0.40 10 9 7039 23% 

104 10 23 5BS 47% 

30 4849 14 

0.10 00 24 IBB 15% 

0.40 10 SB B43 29? 

040 1 J 23 2085 U23% 22% 

132 64 12 108 20% 20% 

0.73 00 131 8% 8% 

005100 977 7 6% 

070 70 807 0 8% 

105 £0 253868 44 48% 

OJO 0.4 23 8798 28% 25% 

0.12 1.7 188 7% 7 

18 58 28 27% 

100 22 12 8ZH 43% 45% 

080 2.1 6 2122 28% 3S 

008 04 38 2033 17% 1B% 

200 120521 -6581)21% 20% 20% 

030 20 13K8n 11% «m 11% -% 

105 50 6 U 21% 21% 21% +% 
000 11 142M3it28% 27% 28 -% 

007 00 ■ 709 34*2 33% 33% *% 

240 7.7 7 151 31 30% 51 +*4 

104 24 13 1072 77% 70% 77% 

20 1794 24% 24% 24% -% 

202 6.1 15 0848 58% 57% 57% ■*% 

107 20 15 970 84% 63% 64 4% 

307 60 25 375 46% 46% 46% 

100 2325372876% 76 76 +% 

106 70 7 328 22% 21% 21% 4% 

032 13 25 888 24% 34% 24% +% 

177 63 )5 986 " 

105 54 14 280 _ _ . 

100 43465 146 37% 37% 

032 4.7 4 3 8% 6% 6% 

005 11 5 175 30% 28% 30% 

008 12 26 2840 31% 31% 31% 

15 5 4% 4% 4% 

044 10 40 4293 23 22% 

032 10 44 226 17% 17 

200 70 10 31 37 

17 173 24% 23 
130 23 17 6010 62% 51 _ _ 

005 10 1911172 38 037% 3 

1.40 83 21 10*2 17 16% 1 


sags 

37% 37% 37% -% 



35% 25% (Six 
Eft 253% CBS! 

25 19%CIBGb 
82% 5B%OMRi 
5*% 44% CPC 
18% 14 CPI COp 

92% 71 CSKx 

28 10% CIS Carp 
24% i8%CaMB8Mka 
Oft B2% CatMim 
28*2 »%CstaCx 


- c - 

048 10 38 871 
200 00 15 207U3 
00* 30 11 3123 
29 121 

136 20 18 3051 __ _ 

006 11 19 23018% 

1.78 23 22 3480 77% 

040 1.4 22 14 U28 , __ 

064 10 ID 840 21% 21% 21 

27 1536 108% 105% 

006 20 13 357 



ZH‘2 24*2 LSOnCX 000 20 13 3S 

23% 16% Cabot OBC 0.16 00198 877 1! 
17% 10% CadncMbun 816 514 1 


59 35% CaasanHA 
2% 1% CHIME 
15% 11% Caiow Cbn 
19*2 15%CaB® 
15% 8% CHFad 
25% iftQMQ, 
42% 34% CMOS 
>] %CanptfRa 
ia*z *4% CanPac 
83% 50%CapOt 
14% 12% cptai 108 
37% 20% EapMUIJ 



12 947 46% 45% 
000114 1 23 1% 1% 

0.16 1 3 27 510 12% 12% 12% 
17 21 17% 17% 17% 

0 1584 13? 13% 13% 
040 20 86 173 20% "* " 

1.12 20 16 1355 38% 

401776 A 
032 10 67 3858 17% 

020 02 2 42141*4% 

138 iai 494 " 

100 60 HOD 


20% 2 ft 


iCtaMUg* 132111 7 571 
..jCbw 
35% 30% QUO) 

22% 1B%Cftn0aa 
H ACartcoPc 
13 8%CftaiaaR' 

30 22*2 MU 
00% 58*2 CpnbTx 

28% 9%CartaUM 

18% 13%CnacdaN6 006 01 14 


a 


82 84 +1% 

sis 

26% 27% 4% 
223723 24% 23% 24% +% 
080 23 18 3SB35% 35 35% -% 

13 77 20 18% 20 +% 

020 22 8 225 9^ 9^9^^ 
120 8.4 12 648 26% 26% 28% -% 
240 17 18 71 65% 65 65% ■% 

033 20 21 1021 13% 13% 13% 4% 
68 15% 15% 15% t% 


000 10 in 20% 20% 20% -% 
005 00 16 251 6% 7% 84% 

120 10 17 4409110% 114% 115% 4% 
31 24 12% 12% 12% 

200 63 11 79 32 3i 

OJO 80 11141 10% 10 

020 00 104148 _ 

108 6.1 0 72 X 25% 

148 83 13 27 23% 23% 

OJO 70 8 229 11% 11% 

5 Z7% 27% 27% 

13% 


33% 22% 

47% 41% Cbmni 
58% 40% GMatad 
19% 11%CMr0r 
8% SOwfcFM 
38% SOM 
34% 24% CMaflaea 
B3*j 44%Qay* 

63% Wii 0Mb 
74 570pBi 
8% 7 Onto N I x 

37*2 28% Oaxplix 
20% 15%CWiM 
27% ZIODcGax 
25% 18% CMMx 
4% 2%Cta|»»0 
30% rs% Cbm 
24% 16% Can* a 
40% 2D%OBwOr 
45%36%CB5P 
26% 2SOBCPB.12 
98 80% CKpPGM 
H0% 82%0cnPQM 
17% 11% CBn U6 A 
17% 13% Cbn US B 

IS SST“ 

23% 9%Cbbwa 
71% 50% ClaHtfX) 

28% 17 Cbytoa Hn 
11% 0% QeowxeG 
80 73Cta756 
«S*2 34% CMS 
08 72% CMOS 
55% 47 Ounce 
28% 22 Orb Hadx _ 

13 lOMMAtoom 100100 
18% l1%0Ncbnan 
1B% 13 coast Sarr 
33% 26% COMOx 
47% 38% CueiC 
19% 14 DocaEa 
23% 1B%CUeur|Mb 



21% 18%Cn*Oi 
10% 7% Cub Atav 
121% Ba%cao» 

15 10% CO Clap 
38% 30% Cedar Fair 
13% 8% QaaEn 
45% 23% Cento* 

30% 25% Ota HOB 
25% 21% (Mr tool 
15 m% Cano Mata 

3fl 24% CBntrNeiip 048 10 22 

22 12% Cant tent 142107 B 129 13% 

30% 20%CartSW 100 70 14 3811 22% 
30%21%CwuyHx 002 1.1 22 603 30% 

27% 18% CUM 95 2234 27 

39? 28Clanpto 000 00 19 3587 36% 

12% 6 Chaparral 020 11 85 25 8% 

15% 5% Chart Hw 15 N» 7% 

51%48%OiaiaMPr 3JH 6.1 2 50% 

40 30% QHMM 100 40 1911295 37? 

3% 1%ChoumB 1 71 2% 

18% IlftOlcKSy 109 185 17% 

12% UQwnBkC OJO 67 0 357 12% 

38% 30% GhaaM 204 07 20 142 35% 

' 33% Dwmtik 1J2 30 87104 38% 38^ 


7%CbwlMi 020 23 3 2812 

~ 072 12 75 2723033% 33% 

105 44 1015814 42% 42% 

145 11 224 47% 48% 

020 10 1573 16% 16% 

02 188 5% 5% 

8 IBS 37% 38% 

42 19 3% 29% 

100 11 724104 48% 47% 

104 15 18 SE7 73% 73 

304 40 SO 1404 67% 67 

000112 315 7% 7% 

246 80 11 82 30 29% 

000 42 20 158 19 16% 

1.72 70 75 832 22% 22% 

038 10 18 572 23% 22% 

187 160 3% 3% __ 

m 70 10 38 27% 27% 27% 

010 04 IS 3177 " • " 

19 349 

060 14 1112509 

208 80 IS 

800 70 17 

700 70 IS 

20 335 T 

102107 8 174 T 
064 50 33 866 ll_ 

OW 09 32 8% 

012 09 11 095 13% 

29 67B »% 

19 2414 21% 

007 54 147 10% 

756102 27 75*2 

120 29 9 87 41? 

7.40 IQ1 4 73 

102 3.7 16 700 52% SI 

030 10 11 60 24% 23 

58 
U 





34% 2S*» Ottoman 
65% 49% CoAfl? 

11% a Cotorirw 
8% 7%DHonHHx 060 60 
7% 6% COkaXwla 0.70107 
8% 7 coroner to * an 70 


3 : 


_ . 21% ColGka 
46% 38% CoMCA 
24% 17%(Mdbn 
31% 2S%Oontortn 
30% IBComtaticx 075 20 22 
29 21 OMH Met a*8 10 17 
3% SCHMMn 0 

28% 22% QxwEdlAZ 103 50 

25% 21 CDawEtflJ 100 05 

a 22 comrfieno sju 66 3 

2S% 22%CBnHd tn 7.11324083 
19 11% Cfttam Ray 038 18 24 1471 


12 % 

a__ 

10% 10*2 
74 74 

41% 41% 
73 73 

52% 

^ -* 
024 1.7 8 U 14% 14% 1 

032 1.7 11 5BS 18% 18% 1 
0*0 10 30 1101 30% 30% 3 _ 
070 1.7 » 8603 46% *0 48% 

005 03138 1323 18 17% 18 

015 07 22 113) 21% 20% 21% 
3 72 33% 3S% 33% 

104 19 18 3583 57% 57% 57% 
085 60 206 10% 10% 10*2 

W 7% 7% 7% 

70 8*J 8% 8*2 



232 66 8 362 27 2W 

a 12 03 51 SE7 42% 413 
038 1.8 10 1257 2% 21* 

108 40 10 S5BB 31 

in 

50 __ _ 

BIO 3% 43 3 

23 24% 24% 24% 
15 22% 22% 22% 
4 23% 23% 53% 
22% 22% 
U 



331 ? 


38% 24% Gmwb 1730104 

1% UCksotom 9 5U 

44% 27%Cnpfla* 000 05 20 5860 _ _ 

45% 31% CRfiCI 271504 45% 44% *rt 

10% 8%O»StrTG0 110 10 4 29 W 9% 3% 

JC aftjCotaat 078 01 13 18*8 25% » 25% 

33% 23%C*Aflqi 072 12 20 4BH 32% 32% 32% 

31% 23? Caaved NO m 60 13 60 *4% 423% 24 

25 20D*MKtBl 100 01 IS TB 21% 11% 21% 

1 1880 12% 11% 12 

*05 &1 HOO S7% 57% 57% 

200 70 U 2305 28 27% 27% 

500 70 27 04 63% 64 

27 3700 24% 23% 24 

1.94 40 19 2539 40% 39% 39% 

100 27 a 1681 55% 54% 54% 

16 2462 16% 

050 10 516(7 52 

ISO 49 
HO 84 


#3 llHQnatnr 

71% S6%CSoE465 
32% 25%CaruEd 
73 62 COHfd PI 
29% 21 s * CraFit 
47 38% ( 


.QBtflG 
09% 50%CnMx 
20% 1l%CmStn 
68% 43% Cbrtou 
60 46CPM4.18X 4.18 67 
100 8SGPwr7.45 x 745 OS 


tW%83%C0nP7nx 708 80 TO 87 

§ 7%0M*Mc 9 237 8% 

48% CDMSkRx 275 70 11 48%l 

28% CWSWtAx 225 84 51 27 1 

25% CQOBAr 060 10 9 233038% 

28% 14l»OasCpx 1.00 07 8 250 15% 

10% B% CtrwrftB 004 04 175 9 

11% 10% Craw HH 1.18115 88 ID 

7% 4%CDnrax0bn 2 371 8 

2% A CD?wCW 2350* U3 

52%»%OB0pkl 10] 30 142691 40 . 

29% 22% CDeparTUx 024 09 21 1135 35% 25% 

15% lOCnhdx 02* 20 10 16 10% 10% 

29%24%DMX 100 42 10 ITS* 20% 27% 

34% Z7%CmlO0 088 22441 4S12 31 

16% 11% Caant Tur 012 00 14 13% 

IB 12? Canty Cr 032 £2 5 715* tSp 

1815%CNHnm- 008 50 38 3*7 18% 

12% 10% QHa 22 88 11 

»% 24% Own x 075 28 18 378 28% 

17 14% cnnfcn an 11 is 11 ie ._ 

33% l9*iCrayftr 9 1405 21% 21% 21% 

48% 39? Craft . 100 S3 13 117 (§4 « 40% 

(2 AMI 1.18 to# 13 290 10% 70% ufit 

8% 5%01Ut|lb 048 8.7 • 67 

16*86*5% 13 


24% 16%OftraHXl8K 048 30 H 4307 
«1%33%QMQ6 1718" 



■A IftM 

13% 9%CR5Str ' 
CryMA 
7% CSftdOx 

. 8%CSFA)8tx 
35% 23 QIC Ixl 

17% 12% Mn 
57% a5?DnmBix 
13% 11% CHrmtix 
S7 3Z?cnxWr 
11% S%CVM( 
13? 7?CynsSya 
2013%C)|x%; 
33% 25%0 |IPAbk 
31 12% Ota 


m. H Sb 

111 Mb Ip l« 

012 1.1 90 28 lA 10% 
000197 0 40 J3 
072 80 180 7% 67% 

001 90 22 6% «% 

47 2402 34% S3? 
000 40184 31 17 16% 

0(0 12 62184 41 38? 

092 60 12 32 11% 11% 
100 29120 HOO 33 » 

108122 6 146 9 48? 

9 113 12% 12% 
94 1809 020 19% 
000 25 1710475 33% 31% 
11 908 l« 30? 


21% 18% DFLIttog 1.16 
20*0 14%Da9aaSan 
30? 25% Ana Jr 004 
46% nomw-Oa 012 
13% 10DarWh4 018 

10% o%oaaGn 

7% 3% Otnptix 
9% 6%Dntoinw 000 
88% «4%0ft|HI 108 

2 ? DU.B 

8? . 4 Da Soli 014 
33% 25% Deftl Foods 008 
43% 31% DaanWOr 050 
8? 7%Uart»» On 
SO? 64% Dam 200 
1% ? DdlMRl 

23% 16% DaMl 104 
57% 39%DBaAt 020 
12% S?DHbMM 040 
2% ?DHta« 

38 25? DHnax 108 

101 B4DetE470S 7.48 

102 88%DatE4708 708 
30? 24? D«BEd 206 

26 22? DmbrQp 088 
24% 17? Dbg AM 040 
24 19% DUM x 080 
80 23%0to ra B uJ Sb 052 
14? snoimootp 
48? 34 DbtxM On 

S 33% 18% MAE 
37% 28% MU 008 
4S% 38%Diaay 030 
35% 2B%DokFax 040 
46%35%DaaAMX ZJS4 
8? 4?Dartarhc 025 
20 DonaHacn x 028 

DSh Donnly 004 

50% Donrx 104 

75 56% Dow CD 260 

41% 2S%DnU* 064 
21% 17% DoiimgrSaL 046 
34% 28% DOE 1.68 
26% 26% OiP«P 71Jn 
13% 8*2 Dan 002 
a? iSDnavx an 
10% 8%MiiFdS 006 
11 8? Drius a G on 
11% 9% Drill St M 073 
76? S2%DuPonM0 400 
<3 3Z%0tXrt>H 106 
27% 2) 4 Durt Rly in 
04 SS% DbA4 200 
B 2% 48% DuPont in 
29? 26%DuqL<i 105 
27% 22% DuqftM8J5 1 08 
29% 24%D«ftna40O 200 
29 2B DuqL4L2 210 
29 24*2 DuqHM.15 208 
100 BTOuf-TS 7 JO 
47% SBOuanlX 008 
8IMHI1SV 
13Dynn*3 020 



ia 


- D - 

50 14 378 
18 764 
30 101583 

03 23 98 
10 29 181 

25469 

2 333 

13 5 B 

10 18 4346 

3 42 

33 2 140 

11 10 263 32% 

10 11 8881 43 42% 

70 584 6 7% 

27 17 73S 75% 73% 

0 22 ? H 

11 10 23£ 19% 18% 

04 4 1875 50% 40% 
24 IS 73 11? 11% 

0 4 1% 1% 

40 17 2171 30% 30 

01 1 82% 01% 
80 2 82 SI 

70 B 1981 27% 27% 

34 18 2tt 25? 28% 

1.7 23 40 24 23% 

16 9 408 23% 23% 
10 25 658 Z7% 28% 

13 75 7% 7% 
20 27 528 44% 43% 

1 0604 25% 23? 

03 13 4880 9 27? 

07 2920722 41% 41 

10 23 787 30? 30% 

60 12 1634 38 37% 

44 31 193 5? 5% 

1.1 11 391 25% 24? 

11 26 23M 30% 28? 

10 20 743 08% 57? 
00 » 8047 I0B 74% 
20 21 294G 32% 31% 

14 11 62 20 19? 

50 11 287 30? 30% 

15 873 23% 23% 
50 4 136 10% 10% 
1A 1010453 20% a 

12 85 8% 8 

07 62 8% d9% 

70 88 16% 10 

80 35 85 63 

5.1 13 1588 39 38% 

1A 27 115 25% 2S% 
40 23 2364 58% 57% 

11 12 7870 61% 60% 

70 1 26% 426% 

62 9 B 23 

82 720 24% 424% 

62 220 29% 425% 

05 5 24%d24% 
70 HOO 81% 91? 
10 40 3045 46? 45? 

31 209 11 1U% 

1.1 26 39*18% 19 


17% 4% EEC Ml 
19 14%EBtt 
46? 35% EByanax 
27? 22%EaaMMi 
27? &%EEKpx 
53% 3^2 Buffs 
56% 40? EKodafcx 
62% 47 Mil 
35% 24%Ed*> 

23% 19?EaMikE 
32% 23% Edm Atx 
24%1S%E4HMi 
B% 6% Bed Craw 
25? 18% BcvOnrp 
5% 1% BKtAfti 
9% 5%Bter 
5 1? BkM 
23 12%BCCap 
9% 7? Bang Qony 
65? 56%Bnrfi 
7? S%Eu4X04J5 
20% 16%Ert*»n*x 
IE 6% EnxXoyBen 
BA 41% Enden ADR 

23% 19% EnerOM G* 
31% 21%BnBM 
18% 13 Bad* Bum 
455376? Bran 105 
34% 27%Bmx 
24? 16% Bra OB 
Mi% 96% BadtUf 
10% 12% Bun* 

18% 5%Baatttb 
37%M?fittfly 
23? 18%BmnCD 
2? 2EQK(Mqr 

30% 21 


36? 31* 

10 

19% ID 

14 llABraaH 
IS? 6%EqWl 
17% KEnH 
67% 56% Axon 


020 1.7104 923 
056 3011 772 
100 20 12 2104 
104 £0 W 157 
100 04 27 as 
100 20 1413 

100 30 34 9365 
100 24 18 2482 
078 15 18 1748 
044 1018 137 
104 40 11 58 

On 20 7 686 

n 70 
022 1.1 11 38 
4 204 
116 70 
8 573 
002 20 36HBS1 
012 10 411 

108 15 Iff 3206 
047 80 TO 
108 70 14 73 

77 186 
100 14 15 335 
U2 U 12 41 
044 10158 1746 
058 4.1 12 71 
058 23 HOO 
009 15 23 7002 
012 00 11 2584 
700 70 20 

020 10 231129 
030 3.1243 17 

100 70 94088 

20 £5 

1.10480 6 in 
002 11 34 9084 
008370 0 31 
1.14 S0 14 884 
2 137 
050 40 1515785 
075 Oil 222 
83 70 

100 60 2 
1U 40 14 9888 


12 ? 11 % 11 % - 1 % 
15% 15% 15% * 



17% 10? 
12 11 % 
45 44? 

27% 2B% 
14% 14 

460 450 
30? 30% 
19% 19% 
97 97 

, a , s 

02 S 



-F- 


4% 2?FMhm 007 
18% i3?FT0nrtmx 1.12 
16% 11%FabdCH 012 

38% 35%FtcMMl 300 

6 ejaftntoui an 

71% lO%Fftabkc 
8 D%l%iDnt 000 
52? 48? Fad tta Lit 104 
55 44? Famsnx 208 
29% 21%Faunt 10B 

B? 6%F4dm 048 

048 

BB% 7S%FaMU 140 
»20%FadP8d 100 
21% 17FKBMSg 042 
2tt| 18?FodDeutSl 
35? 21% Fans Clap 05* 
34% 22% mean 
16% 8% FMWi 028 
33% 22% HagMul 018 
40% 34% Rrtfln B 1.88 
39 29%FTOfix 1.18 
37% 31% FMAnd 032 
9881%FHCMCP8 800 
51% 48? WCMCPCi 300 
191% 94Fta»x«C 600 
55% 41% MOdgx 200 

48%42%Rnm in 

37? S3?WFdllX 115 
18% 11% Rat FH UB 
61? 51% Flat Fb II 010 
85 62% RH an 
i7T2?Faanx on 

23% 16% FtAPMF 078 
48 39? Fit (Men X 104 
53? 31? ItatUPt 4.16 
10% 6% FflUoR 
40% 32? RatVkg 
35%29?FMVtt 

41% 31? HatoFx 
26 16? RMEn 
30 23%HamQk 
44%33%RWWty 
33% 24?HH%|x 
20% lOFtan 
G8?4o%nxr 
5ft «%«CCp 
7% 4? FUCGd 
48 41% Fom CSS 
17% 11?FWMIG 
35 28? Font 
lA BFMax 
46% az%Rmin 
18% 11% nniiuiu 

39% 27%mx 
14% 9? Font* Ora 004 
8 7%FnMPrx OJW 
81 33%Fnrtdni 032 
*2% 34%RaMqnr 
— * 1 4% MM on 

S 4 FrHMB 80S 

19% M4CM 105 

zr<2 2D%nncwt on 

2S2l%FraoCn 070 
a 23FtUxa 
78% BOFdflnCn OH 
16% 13%Rtabny 0« 



787 1448 15*5 IS . 
20 16 237 10 7? 

U 15 2859 E% 81% 
01 421 U56% 54? 

08 40 231 23% ZS? 
00127 486 7% 7% 

24 2218 71% 70% 

10 » 877 29% 28% 
27 118187 090% 88? 
23 U 475BU30% 2ft 

11 17 503 20% 18? 
17 7807 21% 20? 

20 U 503 26% 26 

22 324 28% 29% 
26 38 13 10% 10% 
06 19 1393 29 28*2 

40 10 473 38? 36% 

12 15 ZS4 37% 36% 

00 13 481 34? 34% 
70 8 82 62 

70 2 50% 49? 

09 HOO 94 094 

18 81312 62% 51? 
17 0 394 46 46? 

OO 13 36 36% 

03 47 15? 15? 

00 26 1288 60? 60% 
30 11 17» B0% 79? 

10 81 830 

30 183 

40 10 3221 
70 8 

60 7 243 
30 11 281 
17 10 747 32? 32% 
30 14 1895 30% 38% 

11 20 8337 06% 25% 

40 27 748 26% 26% 
10 18 296 39% 36% 
60 13 1119 29% 28? 
47 16 115 17% 17 

10 26 1471 53? 53% 

92 481 56? 96 

10 7 307 5 4? 

20 18 40 <3% 42? 

10 12 323 13? 13% 

11 1261763 30% ZB? 

94 106 8? 9% 

14 2S 005 40? 40? 
10 20 36 18 18 

5.4 

04 
70 

08 16 2279 39% 39% 
1* 3772 3*% 833% 

1.1 HOO 4% 4? 

1.1 8 HOO 4% 

70 30 SOSO 17% 

10210 2067 
10 8 17 

10336 

09 6 86 
06 U5 10 


sirs 


Idl JD ID IM 

13 3508 3lJj 31 


*% 


-S 



5060X3475 
38% BOX 
48?6BC0i 
12? 7? SBC Wl 
35% 29% GTE 
19? 1 5? GTE F 105 
12% 10%ftMIEq 
" “* Gdgtr 
15? 11?GN«6bn 
4% l%on»rtSr 
59 47? Comb 
48% 36%GHtCX 

-• 2s?eccw 
II? HfinUII 
16% GftnMI 
11%(bmp 
l9%QtHnr 
97% 38GftflH 
(SGftfiK 
4? Bn Hut 
._ _ 9 ?GmHomb 

62% 49? MB 
65% 4%GanM( 

SB 27% GC*ftt£ 
40%si?a«m. 
31%2*?0crtU 
QARliM 
38 3D**8 hBb 


- G - 

1B8 74 TO 61% 51 61% 

140 30 12 2SZ 30 36? 36? 
100 20 12 70 48? 48% 49% 
18 13S 12% 11? 12% 
108 50 30 8796 31? 31% 31? 


10S 13 
100 60- 
066 17 « 
1,70100 
084 17 5 
1JB 17 18 7370 
048 1.1 2B 6529 


4 17 16% 16% 




298 11? 11% 11% 

a a? a? a? 

40H15? 15% 15% 

“ 

- 3% 42% 43 

45 n 32% a a 

1.48120 311 11% n% 11% 

030 10 I 7Su20% 

000 4,1 10 2« 14% 

013 OB 277 a 

140 11 9 4258 45% 

1.44 20 916SB 50% 

038 7.4 2 311 % 

002 30 11 42 10? 

146 15 16 1273 ' 

000 10 2328330 
046 1034 6071 
an 21 a as 

in 09 9BD68 

T02 1.7 a 850 112? m ; 
on 15 U 8987 36 



zi% a? 

44? 46% 
49? 

s 


3 Aa 1 . 

^p2i%a5Sgr 

77% sAagW 100 

104 K% Agia7J2 702 

12? 9SSR 

12% 6%Sffl 


rFdz 0J6 



48% 3BGddcbx 220 
51% 47%Ocndrc30x 150 
40% 33%Gdyen 000 

12? 7%MbKMk 
46? 98%GnosM 140 

59% 58*2 Bttiyw an 

30 23% G MR 100 

27% 19? SMFT 000 

17%12%amGEU 024 
62 48? Gt lata C 038 

45 asamira in 

a% 16% 808R) 092 

31%23?AmMP 112 
34?2I%Awn7)rt 025 
17% 120aMfiigx 028 
19? 14 on* 028 
12% 9%artffllSpn 015 
40% 19 STUMOR 

16% OStamaa 032 
24% 16% 6TOWII 000 



10? 13? KM) Hem 
22% 10MCTMADH 
16% 1 3% HRE Ptopi 
3? CHfttoW 
35% 27?HHMnx 
5% 2%MHMd 
10 6?fna»ftb 
17% I4%nmxtne 


- H - 

006 01 46 15? 

001 10 7 1838 H? 

1.12 13 2* 11.14% 

1 231 2% 

100 30 183311 30% 

2 44 2? 

oa 44a as 7% 

128 63 20 80 15? 

19? HtockJotn 108 80 28 a 2D? 

14 lOHftXScmm 044 4.1 10 202 10? 

17% 13Mn6rHftm 021 1.1 a 438 17% 

2B?M?Hm 000 10 18 301 27% 

a% is? KnaM an 10 17 so z* 

S 4% 1 Hftmam trr 1? 

22% IBHtaanAOR 071 40 186588 19% 
30% HeMGa an 10 161000 34 

20%MftM 006 40 13 378 21% 
57? 43% ttortoyOKX 032 08115 1643 36? 
Unwind 018 05 19 85 30? 

040 1.7 363900 23% 
124 20 161045 48% 
1.40 30 13 199 42% 
112 47 53 SH 45% 

on 104 a 18* 6? 

108 07 18 18 

202 70 13 in a 
102 8£ 13 102* 15% 
100 07 18 sn 30 
008 102 IB ai 9% 
006 09 21 525 7 

a 1702 38% 
17 387 33 

006 04 » 3881 12% 
024 08 S 2871 27% 

102 16 164114 37% 

34% 22? Haims Or 004 07 90 G61 33% 
Xft, 24? Hetarp 050 10 a 209 -28? 

224 11 2 7101®% 
100 17 14 1474 48 

100 10 17 ran Sift: 

044 06 0 2974 u4? 
11 8 8 
020 24 14 42B B? 
On 102 257 5? 

083101 399 3? 

007107 6 8 

067 105 16 6% 

048 40 19 30 12% 
007 10 171473 X/? 

9 188 20% 
120 20 a 848 99% 
104 10 2 104 9tf% 
OW 04 44 7396 45% 
65 2020 12% 
020 1.1 4972a 19% 
n 1 

72 a 


21 % 


, 18% Urdu 
a%4i%unax 
‘ 38% Hmco 
42%HarUdSta 
_ 5% Hftbnt 
18% IS? I 
30%l 

16% Ml __ 
27% HeHlhCi 
SHsHdtEqe 
4%Mtihaaga 


zfizt 
15 9%lbeHI 
38% a% tTOgMey 
38? 3D? Htta 


12l%SB%Ktxd«x 

g 41%UMyx 
71? HsaPac 
4% 2?HaoHQp 
B? 4%MSbaar 

S 7% WunasA 
5% Ugh toe 
7 GMtfilncB 
9% 7?ffHdtac 
B% 7% 14 YU Put 
13% 11%nrag8H 


17- 

74 48?UonKx 
110? 72MKM 
48? 28? UnaOip 
15% 0% Hama team 
24? 17%UMI 
1% -1 HomptoUte 006 80 0 
37? Z7%HaHMIflCROa 08 73 
38% 30%Ht«tMx an 27 144016 
28? a? iwtana x oa 1.1 ia 94 a*! 


26% IB? HarznMD 
Z3h IB? HarxM 
16% 12?Horttwu 
13? AWHir 
3% 1 %Hohiik 


a 424 25? 
050 22 16 353103% 
006 04 341888 14? 

aa 2aasi» 11% 

__ 7 21 Z? 

53 36% Haagtftm M 086 20 19 423 43% 
8% 2%HauaaRb 0*8202 1 3077 2% 
38* 2 28%UHI ia 12 IS 188713^2 
a% 28% MU 1 Dp 2a 09 2 ZB? 

13% 10% Hon* 018 1.4 a 8 11? 

25% 11% HxtoDn Ft* 012 05 23 296 24? 

18% MMflyCBP 034 13 0 231 14? 

32% 17lt0MSn 000 10 16 85 18? 

22% l5?Manana MB 809 a 6781 21% 
18% l5%nrtUig|C 006 12 17 18 16% 

" ' — 022 4.1 9 418 5% 

098100 194 8? 


11% 5% Hwengdon 
10? 8%Hnwtanx 


a 22% BP IK 
10? ampbm 
31 % h%piiii 
11? 9%KTP»xpty 
5 2EFKa 

S 21?UUDFHT 
33? ttxCUp 
aZ4%VWM2 
49% 41% 8WJ 
a 23BFM06 
»23%IPr40 
a% 461 M04 
38% 2B%nN)l|Ql 
47% aVHWPA 
32 48*2 Btam 

22% it? m* 

54% 44»X 

49? 3d? MC Fart* 
12% B? ftw Dot 
18% IBHAbIMta 
29 21 ?Iko 
97% 83 HMP706 

30? WMaGflft 
2ft1ftMEM0 

21% 11?Mannnd 
iO%iatmca 
41% 32? tntftod 
41? 29%Hd& 

9? 7% taSyxt 
23% 1B%WSN0iX 
49? *2% jn a^ Ri 

%WHB0l a 

aawerttogx 


oa 06 19 3*18 02 31% 
IT 879UT1% 10% 
208110 4 in 25? 25% 
084 80 W 965 8% 9% 
11 170 2% 2% 
115 24% 24% 
90 41% «j% 

TO 24% »% 


a 



70% 51? DM 

22% 13%UftnB 

44% 35%MF 
19% 15%HWQ 
« 60%«toc 
H? 27%H)Xt> 
fl? 7 %MbOUk 
so? 22? toaav 

8% 4% MW 
34 17% MhmaT 
a 13WRc8 
3? ZHTec&n 
54? 42? teXa 

94? 19?hMMlBBE 
35? 28? *!*» &t 
11? &%iMikm 


Qxp 


m? 78? ht 


40? 37? JfXnrPF 
48 37?JFbarL 
14% 7% Jsdqnzn 
£? 18% bafts Big 
14? BJafc»uer 
il % Jti B wim 

sssip" 6 

in 96 AsyPin 
61? 44? JmsCn 
48? njmnu . 
13? 8? Jobamm 
2D 15% Juftnafei 


32% 21%njiftOUI 
28? Z1% KM energy 
88 58%KHA4JS 
28?23%tCanstfPt 
#? 8%ltwHiS» 
4% 2% ttonsUSs* 
23?18%KmQfx 
» 14KmC(S4% 

SS% 38? Km®3S h x 
111% 41 Mft 
HA MKabM 
25% 13%UAnsn8Er 
23 20?KXjn® 

10 6?IOAUAiax 
56 47%Kmgpx 
a 19% Rfanrtx 
11% 8%KM«IUta 
84%35%Kimpir 
10% ft*W« 
8? 7%K^» 
13% IIKbogwHUd 
13% 11? NsnpsrSt 
3Sh a Kami 
a 19% tar 6 10 
51 4DNrMex 
^S 9%tatax 
17? lOMpUOn 
29% U%tafUU 
«?«?»BBO 
1% KkaHusEs 


in 70 11 

a 

£21 60 
178 07 

104 00 
110 80 

412 05 B 

064 17 14 857 

800 70 2 

150 70 5 

on ib a 1603 _ 

107 20 U 788 51% 51 

108 ITTOIDU 40% 40 

on 45 3 130 11% 10? 

102 01 30 16? 18% 

040 1081 3817 U29 a? 

708 82 HOD n 66 

106 60 290 2* 23? 

106 50 14 215 18% 19% 

005 03 t« 14% 14% 

13 747 13% 13 

074 10 » 792 38% 37% 

(TO IA 81 4608 0*2 41% 

025 30 2 7? 7? 

020 10 16 10 21% 21 

100 17 10 565 48? 47? 

7 n 4? 4% 

0 8 j A 

084 Z4 4 154 28? SB 

105 SJ 2* 17? 17% 

2 235 A 2% 

100 10 20735 69% 68% 

a 451 18 15% 

108 15 a 837u44% 43? 
080 48 23 147 IB? 18% 

108 22 32 3Z36 077? 75? 

on 10 a i*a 3^2 34 

012 10 4 105 7? 7? 

206 8.1 14 43 22? Q? 

0 882 7? 7? 

012 00 S 6056 23% Z3% 

n era zi% a? 

9 152 3? 3? 

a ia 52? 52? 

1.73 80 11 2*6 21% 21% 

112 50 15 195 31% 30? 

007 80 sn 10% 9? 

007 00 389 10 8? 

OB 479104? 34 

in 14 11 4913 >3 a 


- J - 


2 S 


^4 



zi? 14 ? nra 


- K - 

052 1_B 35 812 

on 30 18 688 

400 70 TO 

2 a 8011 as 

082 08 18 

S 5B1 

1JSZ 70 13 303 2 

100 06 3 1 

000 00 173147 

0.10 10 U 2*1 

025 2.4 7 ia I 1 

030 10 16 1814 1: 

040 10 n 

072 70 154 

104 IS 19 1214 a a 

ON 20 10 * 24? 24% 

007 80 it? r. 

OK 105162253 62% 6) 
090100 72 S 

064 80 EDI 7% d7% 

007 72 175 12% 12 

002 M 112 12 12 

on 13277 TOSS 25% 24? 

100 60 8 a? .20? 

102 11 30 SB7 48? 48% 

ia 90 . 2335 33 ®? 

IIS 31 16% 16? 

074 37 17 2731 12% X 

138 30 H 4071 TO? _ 

on 20 7 119 1? di 

14 382 37? K 

on 50 18 8758 17% 17 



HIV ft 

A a 1 Em 1 

iMW 148 20 19 55B 52 5 

t taOoGap OID 00 a 7284iris% 1, 
RAftORPto 808 1.1 48 104 7% 
tan Id 002 aim 683 24% 

RUBV 15 2368 25% 

[ 24% WEtngyx 101 Ol 12 79 V 

1 i4%nunaGB on 40 a ib 15% 14' 

KUKyacgraO* 004 00 58 8 W8143-, 

. is Kyrnr tods an aa 12 bbuio? w% is? 



- L - 


10% 5% LA Sew 
41 33%Lfi&EBt 

82? lB%LSLg 
34%19%L«0tal 
40 25% LaZBoy 
11 S%LxlM 
25%20%UCW|G9 

a? i6?UndiBftl 

13? ic?lftstorM 
18% 14% Iftrasl ' 
38% 31 %IbsErskpx 

23% 16%U|BM8n) 

48% 33% laguna 
18% 14% UXsrwn 
25% 17? LssearCra 
4% 2*2 LMtoyFw 
2% i%ltamin 
11% S?LlMttyASx 
23? Z3? Italy Cp 
61? 47% Lfty 
22% 1G?UuU 
44% 35% HUH 
20? WUsnHFd 

n auKBLPB 

74? 26? urn 
28% 19% LbOb 
8? 4? UAEFSyx 
77% SB? LocMid 
48% 35 Loclls Co 

UK? 84% Lom 
31% 25% LogkdQ 
9% 4% LmomCp 

8 n%iP*i 
3i% Lrgao-x 
IB? taugtarF 
33% Unix 
32 aLottlU 
45 35% [MUX 
46 29% LsifcP 
37? 28? tiMM 
ZD% 14 UY 
6? 3%LTVWi 
38% 31%Lrftqi 
24% 2T% UftyiCato 
33? 2B?U*ftKlK 
38% Z7% LmBOfcs 
34% 2D%LytHkro 
» 20% Lyonst* P 


6 803 


a? & 


108 50 18 831 ... 

a 3169 82% 31% 
OIO 03 34 9B . 33 32% 

on 24 15 in a? 

ai2 1.1 2BZ7B3B Oil 
102 14 7 Bl 
UL3D 1J3U 832 

n a 

020 10 9 935 
040 13QS 634 1L 
an u a' issms? is? 

084 24 18 2*7 35 34? 

044 20 7 187 22% 21? 

064 1.7 a 1348 " "" 

000 10 SB92 

aio 05 8 238 

0 964 
0 80 

10O1OI 272 
OK 13 12 n 
250 44 34 BUB 
006 10 1851775 
104 4L3 0 671 

006 07 a 1i 

500 8.1 V 62 

9 669 38% 

045 11 14 1647 -22% 

098167 35 144 ~ 

208 20 1121611 
004 10 23 475 . 

100 1.1 B 734 82 
002 1011 TO 31 

1 212 

17B 94 8 5084 
1.12 30 14 51 
042 16 B2DM 
800 14 14 1847 
3.16105 3 

100 £3100 279 
000 14155866 
016 06 9 2517 ... 

374401 19% 

313 4? 

008 16 a 4415 32 31% 

on 20 17 287 23% 23% 
100 16 46 396 3S% 36% 
048 t* 25 124 33% 33 

29 a 

on 20522 6816 BIT 




8% 4? UACtxa 
85% 52? MBA MC 
' 33? HCN 
5HDCWBi 
HOURS! 


8 572 6? 

104 17 10 099 61? 

171 4.4 16 343 30% 38% 

006 14 12 100 5? 5% 

100 07 14 70 20% 28 

038 64 K1 9 8? 8 

r 053 84 8 440 6% 8% 6% 




088 50 a 48 1: 
15 768 2 


18% T5 
28% 28? 
16 290 16? 16% 18? 
38 5017018% 17% 16 

18 1530 13? 13% II" 
002 01 316 J3 24% 


__ 24EMMCX 
29% 23% HanorC 
28? 18? Manp u ft w 
5% 3*2 Manus Las 
10% 7Mmtea 
25% 22% MmteoPf 
B4?55?Upn 
24*2 15%Urtta 
5% 4IMn 
27 16% HftkW 

S M% Hans 
80% UaiMcL 
29*2 20% MftVlrt 
48% 40? MHrtrx 
36? 24%MascoC 
27? iSHaartTacb 
" 7%toaauwR 

28% Hamad 

17? 14% WStj 
188134? HHUMII 
28? 20? HUM! 

45? 33%HBUPt4 
5? 4%Han£ 
4S%37%iW»x 
2»% IBMBjtagx 
27% 18% MBNA tap 
27% 21%McCkM V 
39% 28McDmtfiL2 200 70 
31? 30% HcfixnrtJ 180 06 


000 10 a 4724 

in 30 a 34 

008 03 a 224 
018 04 75 2355 
IU0 50 24 183 
100 208 a 1547 

£70110 « 

100 17 13 1088 57% 98% - . 
100 42 18 5554 24% 23% 23? 
1.15240 4 42 " 



IS? 12%Mc0miW 
31% 25%MdMdx 
mh 102? ucOnog x 
nc%Hs8radix 

S 52%HMamx 
39%H<aaQp 
21% T7 %Mbhusx 
A 18? MadCurafts 
►? 31%MatSmt 
98 69%HdAc 


017 05 76 304 
oa 00 a 2311 
200 34 18 607 
7 251 
On 10 1117TO 
on 25 10 1961 
012 08 15 221 
004 80 a 
£00 60 8 18 
IS 86 
1.18 07106 14 

004 OB 37 8360 

400105 23 38? 

040 7011 Z09 5% 

104 £514*608 41% 

050 20 372IB 18% 

072 20 18 1637 25? 

034 U 23 123 26? 

33 3fta% 

54 3D% 38% 




29% 

- 33 

97 88? +1? 

S% aft ^ 

27% 27% +% 


siL 

41% 30% Umax 
38 a% Heret 
18% 14? UenuyFfl 
49% 38? Mrtflbx 
45% 34%tludjw 
*% 1? Herrj6rfW 
8% 5% Mm 
3? 2%Me*aMTat 
0*2 BMamktaE 
55 4BHBM30O 
2*%T4%MettfM 
" 24? toexfajFtt 
7%m 


io% 

ST 

5B? 

an . 

& IS* . 

23% 17% HKM&e 
7% 2? HU tap 

a SMUR 

72 UoM 



U2 2J S 8 1^, 

02* 00 81S378 28% 27? 28% 
148 10 12 1288 life *17% 118% 
232 03302 809 69? 0B% 08% 
108 10 a 3502 103 102% 1 ' 
100 10 M 2931 050% 

044 11 48 75 20? 

11 4817 U2B% 

IBS 80 16 2S6 33% 

002 08 S 2185 MB? 

a I 050 10 a 1208 28% 

200 05 IS 27% 

224 80 12 2407 59% 

102 40122461. a 
008100 52 

102 17 18 1298 
100 30 183414 
Oa 10 31 1048 
072 10 27 457 
002 £3 83782 
005 18 1 sn 
2 858 

0* 74 17 M ..... 

15 2 8% 9% 8% 

380 80 HOO 47? 47% 47% 
000 3411 484 23? 23% 23% 
001 09 915B3 34% 

■ 150 8? 

2% Mttbenx 006 14250 7 2% 

OK 04 18 m 5% 

(TO 00 40 9% 

000 U 50 1725 56% 

ITS 32 83434 86% 

*2144 21% 

048 24 2* HZ 18% 

003 17 86 19% 

15 458 3? 

008 03164 11 

340 40 18 5370 
5 86 1i 
000 10 14 381 

018 10 10 a 

252 01 a 5045 
079 80 2 4 B? 8? 

_. . 100 08 11 2a 23% 23% 23% 
16? Uotltgow A 106 70 8 31 17% 17% 

_ 10% Morn tap X 004 40 27 500-18% W? 

72 BDIftWUP 132 4.1 7 380 66% 

H? 9% Morganfta 116110 2* 10 

BB 74% WgmJPPt 500 OB » 18 

13% 12 Morgm 032 24 5 141 18% 

4%MHgmR . 4 SB? 6% 

55Mm8U 100 17 72831 70% 

080 44 58 1443 18% . _ 

044 10 9 4667 29? 29% 29% 
Oa 05 15X80(29 9ft 

0. a a 

063 70 112 8 

072 70 TO 9? 

065 70 44 8? 

001 74 en ID? 

100 27 a 9H9 1 
022 10 a 40 13 





15Mor«ix 




U% 

47% 31%HpbyO 

Hymtfx 


15% Mytoo Ltow 0.16 OS 53S4BW 



£3 

X 


. 35HBBMKP 
65% 56% MDHtapx 
63 46? Itoceox 
? 29? KafcoCh 
I? »%HMhua 
!%10%NMh 

S 44?KUkx 
35%rtrtMM 
46% awAsta 
a HMOYr 
33 15b JtSSffiS 
4 ?WEUub 
IM Saar 
B%MW 
18? 13% HUE 
19 13%MMed 
48 a%IWIiaBfti 
1? 15% HtSta 

l%24?H6m 
14 7%HW3bBd 

26% 12% not 
54?49%IMHVG 
S3 27% MO Bn; 
16? 13? Notes] Mar- 
IS? 7? Seta* Ed 
2ft n?HMNkPw 
5% 4% Haw Am M 
39 31% 

* 11% Mserffrmy 
21?NM JsyR 

- HftsPUiR 

30% 

47 
17% 

SO 37%tamdGx 
43 37% Hansnatx 
n 47% Mss tap 
TOO 76% NnoCapPI 


&M%tagJ | 
i%*8%w*e 
33 28% tarn at 
11? 4%NLU 
32% a% NaMBAt 
9 S?NmB£ 

40 32%taTOf 
7% 4%Hontlhs 
t%'5B? HaftS 
38% anirttEW 
13% 7?Mxwctoe. 
18 12%8fll%« 

.-KPad 
rr?MWx 


llbttrpx 


- N - 

m 20 u w'47? 47? 

100 10 15 a 64% 63% 
on LI 47 a 82% 62% 
006 16 W S33 33? 33% 
072 25 B 2 a 28? 
002 £6 3069 12% 12? 

104 23 TZ 87BB 56 55 
165 70 IS 208 36% 38% 
155 02 M 72 41? 40? 
m 45 11 1853 27% 2B? 
044 22 23 131 JS% 19*2 


5 6 

108 5.1 14 208 
IB K 
043 27103 3574 

in *4 17 a 

13 0164 
IM 40 IT 118 
7 a 
1 33a 
600110 5 

100 30 122686 
OB 14 60 91 

991134 
100 70 11 293 
054117 280 

2a 80 11 2316 
012 08 438 

102 08 12 74 
104 5.1 24 2GB 
220100 9 USD 
OJO U 222541 
040 20 41 61 
048 12 37 649 
048 1.1 37 3187 

017 03 17 ns 

£50 47 2 

300 00 2 

1.12 70 812314 
020 12 14 1971 
144 50 12 IS 
Oa 11 7 343 

018 00 88 1273 

03 30 21186 

300 00 *T2 

542227 
102 30 183019 
048 10 27 BBS 
010 ,00 a 2m 

aa 2018 4* 

IB 327 
IJH 74 >4 1323 
204 01 142320 
4 227 
USD 30 S JSC 


15% S? 

2s? a 


28% BMIImM 
a? 22% Norm 
10% 6? Hum 
18% l2%Hmom 
27% 23 NanM 
IT? 14? Mr Cl Man 
16% 15% Hi itylta 

n«? Hta can* 

28? 18% warp 

17% l4%MnrCd 
13% 11%MBMCI 
13*2ll%UtoanMI 
17 14% tamo HO 
12 8?NmiaMM 

18% 16% tame HP 
10% 14% Hwaad P P. 
18* " 




18% 10%0HM ftp 
28% 15%0rtbdi 
29? 19? ONosoodHa 008 
21? 15%0echF 140 
" OtfcaDqxd 

105 




100 


- 18 14? Ogdto Prat 
22? IffttWfcEd 
83 50*2<MgE844 440 

K% 500MDEU0 406 
87 8OONDE704 7a 
97% 81 OMoE7ax 738 

37? 29%OftbOE 155 
"OlaCp 200 

M Ortdcm 016 
Oarton 104 
17 IS? OMMUB 046 
S3? 15? Oneok 1.12 
28? 22% Oppeeb Cap- 200 
1-A 9?0ntaiMS 094 

§ 7%onai*Hid ok 
6%0nbBiCD 
saorttoan* 206 
17? OraoonK 056 
3? 1? Orton Exp 
34? 29? (Mai Cap 
a i4%0m&i 
25? 160DMM 

28? i7%oetai 

17% 13? OtoaoaH 
46 30% OaaaaC 
34? a4%axMU 072 


072 

040 

040 

080 

016 


- 6 - 

36 EM 12? 
16 846 27% 

03 21 448 28% 
40 3423174 aZ2% 

X 4686 » 

50 151037 22% 
1* IX 17 
701B3T8 19% 
60 HO 52 
80 HOO 53% 
80 10 61% 
08 3 83? 

70 10 12*0 34? 
30 15 2» 87% 
00 41 3K 39% 
25 W sa 50% 
30 14 58 14? 
84 12 103 18 

64 12 106 2*? 
11 93 10% 

80 57 7% 

14 HOO 6? 

04 0 60 a 
30 a 2278 II 

5 5 

£2 a 154 
£6 5 2476 
10 TO 630 ... 
30 41 153 29% 
t2 207 18 

14 1090 33? 
28 14 214 28% 


a 26% - 



'*■ 


1 

I 

a- 



35% a% 
28% 23% 


43% 33 PW 
31%S%MCBt 
«l%34?PP0b 
14? 9*2 PS Bam 
26% 19% ret 


- P - Q - 

10 3510 TO £7 38? 
10 U 8 2996 Z8*r 27? 
1.12 17 13 3108 u*1? 41% 


19% IflPdfcp 
1% lB%P*£m 
X 22% PscSE 
58 SOPTMaa . 

18? 15MWVX 
20% 13% Pal 
" 16% Padxt 
PtokEMt 
.. .PteWr . 

45% 34 Pans*] x 

2? 1%P3M*Pt. 
fit 8% ROM FT . 

A 2? PMSar ftp 
1% 2S Reset! 

86 nPmdU0 
58 47Pntay 
27% iB%Pan#L 
21? 29%Pmfidx 
58% 45? PlDfllX 
32%23%Rt«ea 
35*2 25% PapBojlM 
41% 29% Papiics 
a% 28% Ptnfiorx 

2T?T3?RMnRa 

6% - 4PnrtmBax038 70 10 

30% 27% PWw 
1% 23% Poole 
i?5S%Ptar 
!% 47% Mato 
t% 17%PWSBbtB 
61 47%nMar 

34% 25% PWPt 
»17%PMM 



080 5J 5 123 .10 
lb 35 12 » 

UPasAmiocx ia a* 34 i* 
zi%PacSdu 012 05 18 88 
108 60 123746 
108 00 W 518 21* 

in 80 W 3012 

£18 80 71 4687 
0.48 30 3 980 16% 

007 £1 a 1056 18 . 

004 30 16 1382 22 

OK 09 25 2341 
112 147 
100 £4 31 3821 
51UB 
060 04 216 

15 84 
102 50 11 1523 

400 70 3 .. ... 

108 30 14 379 GZ? 51? 52% 

107 70 10 722 21% - 21 21% 

200 70 22.30? 30% 30? 

300 59 13 298 51? 51% 51% 
100 S3 11 233 2B? 28% 26? 
017 05 34 1837 X 34% 34% 
072 22 18 9016 33% 

068 20 65 322 X 
100 60 13 73 15? 

S 4? 

4 TO 5i 
002 10 18 1796 ZD% 

060 20 42 82 28? 

020 00 51 11* 26? 

108 20 a43B2 68% 

105 £6 23 3064 SB* K% 

1.12 58 14 n 19% 18? 

176 40 1478961 S61? 

1.12 3.4 32 1283 33% 

015 .06 IS aa 23% 

21 
6% 

aa 24 
on 07 10 
on 44 8 


23% 1B%PtadmMNS 104 50 14 53 
10% 7%nritiB 010 10 141251 
12% MtSMbBB 
0% B%P9gatna'P 
S? IBPHVCp 
27? 23 HOP lia 
14? 9% HonearFti 
14? 12%Pfcrta 
■368 napftuyiii 


£12 80 
015 10 
UB 80 
£12 07 


239 11% 11% 11 

qa a O 

519 18? 18% 

12 23? 23? 

110 9% tS% 

14 12%U12% 

4 TO 318 

104 £7 17 1053 38% 38% 

O0D 07 21 1111 28% 27? 

28% 19%PliarOmxO0B-t1 50HB21 £2? 22 ZZ 

Z7? 19%PUnaPal 004 1.1556 47 22% 22% 22% 

10 » 6 % 8 % 8 % 

1J2 80 13 746 25? £5% 25% 

012 00 a 191 20% 20% 20% 

000 TJ» 757 35% 34% 35% 

. 14 772 37 36% 37 



13 aPtajftxvB 
•h 21% Rita Creek 
l% 15% PognProd 
A £9% Petti x 

l?25?n*ft» 

48% 37%R«Gna 
32% 17% Ax» STH 
15 10% Pote tad 

S ii%nn«afF 
22% Potash Sn 

Hz aw 
% 18% Poita 
a 18% Pam- 


PitsMtotP 
Proas 
ngnwOb 
PlttaM 
Pratu 
Plop Jr Am 
PnnpSx 
MU 
MBx 
.MU 

. %PmlMyC 

60 48%PbSbvm 408 01 
IK 87PUSftV74a 7.40 02 
B4PMsnCa 
W3 8rP&S«n70 

22 . aresro 

13% 11 

a 1% 


016811 



040 09 47 81 <5 

0» 30 n 1421 22% 21* 

12 30 14% 14 s 

001 01 211 15 14 

144 40 a 2147 104% 

1JSB 15 33 3K .44% 

1.86 60 1020a 20% II. 

(UB 12 21 SB* tC3% 22* 

016 08 14 298 U28 __ 

OJO 10 8 2*38 45% 44? 

040 10 21 247 22% 21* 

M 65 12? IS" 
2062210- 0 5 

IM 20 BO BOOB I 
022 00 11 023 
008 29 59 30 
413866 

100 50 a 263 18 
042 110 164 

1.12 IB 12 373 
104 30 11 122 
000 £4 13a 34 

0 17 018 018 018 
HOO 50% 58’;; 50*2 
£ * 90 90 

3 .85 dB4 84 
Z 96? 96? 95? 
a 27?. 27? 


7J5 05 
700 8.1 
210 70 II 3*0* 
13 
1 

104 80 9 
056 10 a 
024 10 8 
078 73 


21% Me 

1% 9%Putnd)Mi 

n 9%PUtartl0ff 075 7.S 
1*2 7% ndmrtriGv 080 8L1 
t% n?Piem*n& ass 70 
1% 8% Mum It) OW 70 
A 7%nsnMmtl 009 04 
I? 7? Pukiamttst 076 02 
7%Ptftnpnu 
85 01? OmtoO 

1% 12%0rtiwa 

r? T70BBXK 
9<s21%taHMD 
1% 120KHHP 
29% 


072 0£ 1000 7% 

212 20 1034* 01% 

040 20 a TO 14% 

056 £1146 711 uZ6% 

120 40 115 25% 

130 90 110 12% 

.... 1.14 32 14 271 31% __ 

36% 23? OOhXRiyx 048 10 7 2* *% 2B? 



- R - 

iu 

060 27 43 
015 LI 
032 70 K 1522 
SB 

1.20 10 12 2043 
002 0X197 967 
032 20 6 567 
100 12 13 ZSB 
140 30 18 1038 
47 341 
108 02 14 17 

4 1535 
000 00 14 1196 

17 1Z7 
032 52 6 1318 
083.10 18.6*11 
102 19 895* 

18 1539 
to ion 

034 10 TO 720 

in 10 n 1743 

102 50 3 

1.12 30 12 2D49 

000 18 14 1018 

0 211 
a 191 
100 73 11 436 

001 30 9 701 
OJ0 117 53257 
108 30 13 3422 

17 a 

IM SAX IM 

12 1719 
aw 10 38 1173 
000 20 W 415 
oa 1.1 16 248 

TM 7713 
201 104 37 

oa 47 W 4206 
1.15 3.1 1* 
045 10 21 8378 
028 L4 16 120 
OH 42* 68 
040 10 27 127 

13 21 
008 22 W « 
060 14 48 120 



16% If, 

aS 

A 016 018 

32% 32% 33% 
45% 44? 45% 
17 « If? 

14? 14% 14 



«% «J4 
27% Z7% 27% 
17% 17% 17% 


-S- 


20 ? 

13 

a 

80? 

X 

18*2 


a 


16%S AHBR 000 40 K 69 

to% scan us cc oa 3.1 » 05 

W?nSTe 108 4.7 4 6 _ _ 

T3%SH*»Rt 1.18 8JI 8 a 13% 13% 
WSHaeart (TO 10 12128 14% dI3? 
22?5abtfUSe- " r 13 * 29? ' 

13% siva 006 11 9 
ISJfSxtoMy- 37 un 27% 27% 

*% a*MlW0 6 . 94 • ' 

47? SUkfem' 020 00319 K 



X" 


8 u * 


' IX 


/*“ 


■I. j 1 


% vT 4 

4 --T-. 

• « 

.1 ■ .. . 


'■■■S' 
-■ .•*)• 


, .v 


. i‘: * 

i |JT* >" 
’>4 < 


ini". 

. -i -' ; - 
'r-' ' 

• h- 

•;r 
’.as: 
V ■ 

• i:;- 
i:nn 


i-iL~ 

i** . 

'■£-* 

■-l~> ' 
1 

Hi. . 

l '-'S ■ 
I*!. « _• 
l.'.V/ j 

trsr ; 

"y 

• •-•a 


>.sc 

*• <SJ 

-f 


• I--! 

I - 

-h 


•rVx '. 

o -.! 

!• ,f s 



Ri: 


1 

I 

-I 

V 

0 . ; 

*n-u. 

y ■ : 




V. 




ve 


G>. 


Con fino adtmrtPdpWO 


X 


FINANCIAL TIMES THURSDAY SEPTEMBER 1 1994 ★ 

'MMptf* "" NYSE COMPOSITE PRICES 


35 


NASDAQ NATIONAL MARKET 


jpmctoseAigiats? 




^ w. w s* 

"* * * W» H» toe 

Cort *wed from pmte pro 


»% zstwiAj. 

§ *5 3?%S8tau< 

SSdMQp 
ZASlBBWtt 
lijSSatomrea 
<1*8 Satan 
K 17? SnDgBE 
10 7?5te*MERi 
1«? 13? SF*Gd 


1-80 02 14 Ifl 2S 28? 
1J0 IS 4 22ST <3? <h 
6 10? 5% dS 
1.40 36 7 7055 - 

0-32 2.5 71 1 

OM IS 6 2619 4 
1S8 ?j io 523 1 
0.18 1.7 9 BIB 
sro 


Wa. 




oi* « 


Ck> 

cue rrat 


16% W^TWesta* OlBO 67 13 126 14? 14? 14? -% 


*£«£££** M0 0018 80 _ 

^ !S£S? P 0l, ° M 111032B 21 

SSss; 1 *' ™ 

40? 31%SdmrflP 
34?Scfirf1 

kj m% sot** 

«5 Z3Vta«4OT 

10? 6?wiSr 

44? 24%ScMfl 
10? T3SCMWI 
88? 37% SeodP 


1.00 7J 9 2822 1’ 

30 in IMS 
M4 2J 1B«K 
1-20 2.1 Z3 4164 571 
020 09 14 2080 
25 573 

0.12 OS SB 2068 U45 
0-10 OS 14 07 15? 

as.*,*™* a a ,r 

J& ,£?«"«* H I s "SSS. 

wJJSffiEU.tSi? 1 5 « 5 t 3 i«S 



01 TRW 

39% 22?Tdw*Fd 

f 7% &J,1*jtaa 

IOTWvPI 
34% Tmtoux 
10? Tandem 

30% Tandy 

9%T&fucMre 070 741 
4 2% TOW 
22% 16% TareBwg 
34% 23 %TUib 
28? 14% Tamo 
46% 34?T*a&pGA 
78 50% Total 
54% 43% TmpMx 
30% If - 


200 2.7 22 1268 75% 73% 73 +? 

206 31? 31% 31? +% 
C.42 5,6 11 231 u7% 


100 7.7 12 13 12% 13 

1-88 4£ 10 6878 37% 37% 37% 
14? 15% 


8 % 


3 2085 15% . 

OlGO IS IS 3205 40% 40% 40% 

128 9% <S% 9% 

3 3 3 3 

1 -01 61 152155 20 19% 1B% 

660 1.7 22 1000 u34? 34% 34% 

a80 4S 71 78B 17% 17% 17% 

ISO 4.1 6 1263 41? 41% 41% 
1S3 2.4 1320541 63% 62% 62% 
ISO IS 463078056% 54% SBU 
TwnoRBoMt aT7 06 212 27 


2 Twnp*Sr*) X 080 02 124 

■ ^ot«h«w aso as i3S5 

SB% 42%Tenacox 1.60 32 19 7784 
» 2S%TappcDPB 240 as 11 S3 _ 

3 ’J* 29 231 26% 


26% 2B? +% 


11 % 


Tare* 006 OS 0 . 

6? Tans Max ace as 3 3174 is 


f% 6% 
10% 10% 
10 10 % 


1 3 6^4 

28% 3%6a^sEa 

34? MSaW* 

55% 42%6anRx 

lAllVW^nsal 

89% « Sarcoma! 

38% 27% Sana* 
40% SBSsreafi 

aa%sancp 
28% 22 Stair 
28 18 Shan kid 


15% 15% 
OSB 1J 41 8975(1®? 32 32% 

31 616 24% 23? 24 

_ 26 260 035% 34% 3S% 

1-00 14 7 8525 48 48% <7% 

ttM 7.0 8 12 12 12 

CL22 66 35 2429 34% 

080 2.1 6 10 
050 IS 17 7 33 

04* TS 21 1472 
09! 36 13 345 _ . 

022 IS Zt 1370 17!; 


. «-=■= lul XT 13/u 17'1 

“ as 20 5161 »4 



5M*M 

amt 

.snanvx 

13? Stone* 
13? Shout* 
17% Eton Pan 
8% 3%StonHn> 
43? 34%SBntUi 
26? 18% Steam* 
13? 11% Eboto 

3 *% iSlSta 
S 3%8LMk 
fe 4?Gndfatara 



028 2S2I 6 

007 4S 21 328 

0£S 1.7 17 063 33% _ _ 

, 8 1711 13% dl3% 13^ 

010 07 18 172 14% 14% 14% 

1.12 6B 11 442 20% » 

1 2 7% 7% 

1.00 2S 12 1375 — — 

33 5565 
1.12 07 34 « 

016 22 21082 

048 24 18 213 

008 1.4 15 21 

OSD 43 77 621 

115 3686 

095 27 17 72 38% 

1.17 OS 0344 32 


-% 

I 

a 

+% 

-% 

♦% 

a 



14% 5% Tran II 886 10% .. .. . 

68% 68% Toes 320 62 18 4756 82% 61% 61? 

61? BOTtoHcoC 323 04 30 50% 80% 90% 

39% 2B% TajBSbd 020 OS 45 132 36% 36% 36% 

80% RIM ISO IS 162B928 78 77 77‘ 

21% 18% Tens Hr 040 20 24 4 10% 10% 1 

43% 307*0 OSS 62 20 3290 33% 

«ft 2%T«0toB* 1WU 1 ZlflO 3% 

BO? 60% Tata 1A0 25 13 875 66 

4% ITtotaqr 218 » 4% 

34% 14% TtuB Cap 035 1.7 464 20% 20 

37% 24% TM Food 028 OS 441 33% 33 

45 387lW7H0O*c 012 03 264214 u4S 44% 

29 22?Thtotafx OSH 27 6 3® 25% 24? _ _ 

BB 58% Tram 224 32 22 754 64% 84 64% 

10% 13%HmbbUi 040 27 30 14 15% 14? 15 

43 28%-namonM 240 GJ 17 43 42% 42% 

28 18% TUto 040 IS 38 483 22% 22% 

38% 28%tany 03 07 84 74 38 37% 

44% 347MtaX 03B OS 77 7752 88% 37% 

1S6 3S 25 3882 33% 

1.00 2S647 188 39% 38 _ 

7 285 5? 5% 

ISO 20 10 11% 11^ 11^ 



37% 26%Tmtaa 
38% 31% man 
8 2?T BmOn 
13^ llTtonPf 



4Tedd8Hp 


8%TtMntoCB OSB 6.1925 290 


V 

27% 25T«taE281 281109 9 


_ 8%8tr«h 
36% »%9 QgUx 
32% 23? SKBEqU 

W hlS a S5? W “WHO 21% 21% 21i; 

28 20% Enactor J 060 21 18 ® 23 s ? 23% 23^ 

44% 34% sqCOT 1SB 29 18 IIS 38? 36% ^ 

21%17%SiwtoOI 024 is 23 604 18? 18% 18? 

34 23%SWadran 32 1221 31% 30% 30? 

34? MSWKk 1S6 15 10 1849 30% 30% 30% 

63% 40% Sony Q.47 08137 434 60% 80% 60% 

16% 11% Sonatvs 021 IS 63 368 12% 12% 12% 

48? 40SoacaCwixOS0 08 9 41% 41 41% 

46% 32 EouTCW9% 258 7.6 2 33 33 X! 

24 17%58UnM 1S4 7S 11 50 19% 19 10% 

050 24 BB 710 20? 20% 20? 
120 BS B 13 17% 17% 17% 
om as 9 171 21% 20% 20? 
MS 03 OBBOt 18? 18% IB? 
1S5 5S 11 87 28 27% 28 

1J6 5.4 65 610 33% 32% 32? 
004 02 26 3066 2B? 28% 26% 
082 4S 21 SO 17? T7% 17? 
024 1.4 16 380 17% 17 17% 

220 02 10 1038 26% 28% 26% 
046 <8 222 9% 9% 9% 

7 3 5 5 5 

012 OS 26 15% 15% 15% 
120 13 13 47 37% 36% 30? 

ISO 25 28 5368 39? 38% 30% 
0.40 2S 22 51 17% 17% 17% 
SUCMkhx 040 2S 7 143 16 15% 16 

SWIMsr 032 1.7 13 227 18? 18% 

012 1.4147 273 8? 8% 

088 25 13 24 27% 

056 20 17 1® 27% 27~ 

ISO 28 21 41 3S% 34 

1J8 11 21 642 43% 42 
ISO aa 96 1)43 42% 

068 30 20 2 22% 22% 22% 

084 04 61 10 810 ID 

OEM 23 71116 27? 

020 29 6 24 6? 

006 07135 2224 11% 

195 12% 

281575 29% 

012 IS 3 27 6% 

000 IS a 62 33% 

071 16 4 7739 u18? . .. . 

23 2195 27% 2B% 27% 
0S< 5S 16 75 15% 15 15 

12 2681 38% 35% 35? 
M <34 38% 38 38 

038 24 13 2872 16% .15% 15% 
33% 23? EttmRyar* 120 46 14 IK 28% 26 28% 

4% 2SQM8U 030 ISO 0 B 2% d2 
II 10% SunDli Ax 1.10108 7 243 10%l!10% 

6% -ISoaDbB* 024 41 5 187 8 6? 

7% 4% Sui Enryy 028 01 46 102 4% 4% 

48% 33%SMMr 040 OS 15 878 45 44% ... 

120 24 19 237 50% 48% 49% 
1.19 13S 58 9% 0% 9% 

3181 2 1? 2 

128 25 14 680 Ifi1% 51 51% 

OSB 10 13 GO 12 11% 11? 

018 08 202047 28? SB? 29% 

_ , 094 32 11 381 29% 29% 29% 

20 11? SO* (tax 018 09 20 530 17? ■ 17 17% 

23? IB Ms Mr 008 04 60 21% 21 21% 

' “ ‘ 59 716 lOD 29? 29% 


30 19% SOaton 
22 16SMK 
22 18% S8dMQp 
22 T7%S0nC0 
33? ZS 1 ] SoattoGE 
36% 28% SNGTal 
38 24% SWMr 
19? ISSOuIMGm 
IB? 16%SaahW&or 
30% 23%SauBM«i 
12% 8% Spain Rnl 
7% 4% SpartonCp 
18%M%SpBmO 
39% 2A Stag 
40% 32?SpK 
18 13? SR 

26% 14- 

12? 7% GtntacU 
38% 28% SOM 
30% 24% Stain 
37 31% Santana 
44? 38%SMW> 

42? 37%Sb8k 
25% 20? StolW 
11% lOStaHuS 
28% 24%ShUMSA 
7% 6% SNrtg&crp 
tl% 3?Sto«Chm 
14% B%5«e 
3S% S9toUBm 

10% 6?sasni 

33? Z7% S8XW&MM 
19? 9%5toaCnnl 

27% loVsaoanp 
16% is?68ta 
41% 25 SMtt 

S H? Swam 
ISSUMiOtax 


1 

| 


A 

19% 11% TBBBras 
75 68?TDaHan 
48*2 36%Tt±nfc 
30% 20? Ten Cun 

35 27% TBaco 
30% i8%ToMan 
40? 32%T>waA 
2B22 
57% 


15 461 


16? WTtaBM 
14? 12%T>noit8 
17? 10%TRnbtfi 
43 31 Tm4r 
18% 13?T)tagv 
" ! 23TrCtt*25 
I 12%Dta 
64? 50?Titnnax 
24% 21% TrtCOfl 
47% 30% Tt«ry 
40 31% Trot 
37 24% Triton 
4% 2? Tucson B 
7? 4%TuinCrp 
4% 5% Tata h 
28% 121taCW 
24% 18% TMlDbc 
55% 42% Tyco L 
10 B% Tyco T 
8% 4%l*to 


13 1050 
044 07 18 SB 

1.12 2S 12 667 42 

04B IS IB 374 S% 

0S4 2.1 12 4790 3D 

018 08 45 34 29% 

24 G24D 37 

1%nataX 1S2 8S 10 34 22? 822% 
200 17 B 279 S3? 53 

0S6 07 13 106 54 53% 

OjBQ 19 11 StZ 15% 16 

6 2100 



OSB 00 10 2 12^ 1 

0S0 IS 9 4564 37% _ 

024 IS 18 647 018% 18% 18% 

250 7S 5 33% 33% 33? 

• 609 IS 15% 16 *% 

1S4 IS 20 2312 53? 53% 53% 4% 

0.78 3S 240 23% 23% 23% 

068 20 18 2296 34 33% 94 +? 

OSB 1S1C2 277 37% 37% 37% 

010 03127 1435 32% 31% 31? 

116 1101 3% 3% 3% 

020 3S2BZ 324 S% 5% 8% 

012 IS » 7% 7? 7% 

<LM <8 2 571 13% 13 13 

070 11.21 14 23% 22% 22% 

040 OS 25 2584 44% 43% 44 




010 IS 3 


to* tatak 

15% USUCOz 
9% USLfE kc 
15% U5XI4 
30% (JEX US 
. . 12% USX Den 
31 2E?lHqn.775 
31? 27% UMcorp 


n. n sh pm ton. 

DO * E KXh BgU Len M COT 

1S8 4.1 16 5ED8 37 36? 

024 1.1 7 27 21? 21% 

030 8S 0 15 9% 

088 1S431 7785 17? 1 

ISO 2S 9 2901 41% 

020 14 B 40 14% 1 

1.78 8 l 6 « Z7 27 _ 

1.72 OO 14 229 28? ZB% ZB% 



-V 


53% 44?VF(fe 
24l| ie%Vtosf 

7 4%VgHkB 

7%1fe*ampH 088110 
B? MKtatar ISO 12S 


10% 


1S8 24 13 478 62? 
0S2 2S 582 20% 
OSB 14143 13 

51 
30 


12?t<MMnMfcU0£t 7S 103 
7? 5% Unrco M 29 210 

3S% 3% fetal 024 OS 13 231 

60% 33V*rfiy 271288 

13% 12? UtoOT 1 SB 82 0 37 
78% 60% VKSPSSDx SSO 02 1 

44% 91% WiayM 
26? 20VW8M 
28% 20%Mnkc 
32? 24% Mxlakna 

14 7Mtataar 
18% 1S%tt»CK 
37% 31%VnatiB 
52% 44WenMx 


29? 16% MIC kU 
32? 26% WPLMdki 
20% UWBtata 
35% 30% mm 

15% ir 


19% 

3 

9% 


52? 

i 

11 

3 § 

37% 



117 



- u - 



iS 


19? 19% 19? 


»% 

50% 41 Wki 
11? BSumtatff 
3>a 1%8OTM 
51% «3%&taU 

14% 10>2 Soon FaoB 
46% 286l«aris 
40% 27%Swmx 


-? 

jf ♦% 

44% -% 


I 


30 15?5wMTae 
10% 7%3wcon 
1ft? 16% SfaouRl 
24 12% Span 
29% 21%Mco 


020 15 10 22 

045 24 IB 222 18% 18 
1S4 4.3 12 1348 u2< 
036 14 22 8822 25? 


29% 23% US Hi 1S4 16 20 1230 29 28? 29 

8 4% US 34 37 8% 5? 6% 

4.10 8.6 35 48? 47? 47? 

6 2118 22? 21? 22% 

1.12 3S 18 3382 u31% 31 31% 

B 49% 48? 49% 
O 275 101 100% 101 
1 SB 4a 7 3 15 4% 4? 

1J6 7.1 21 211 ‘ 

2 574 

040 17 15 820 . 

010 07 14 225 13? 13 13% 

2SD 4S 10 3 79 70 70 

454 4S 17 518115% 114114% 
156 11 « 1858 50% 50% 50? 

075 22 34 6484 834? 34% 34? 

18 51 11? 11% 11% 

350 74 2 45 45 45 

450 7S 2 59 SB 59 

228 8.7 1229EB 35% 35? 35% 

1.72 10 16 4451 57% 57% 57% 

_ . 092 16 8 408 25% 25% 25% 

22 16% UnWTflXM 020 1.1 51 2884 18% 

2% % IMfffl 0 mo % 

16% 8% Udiys 2.77 201 6 752B 10 

232B333 

. 096 25 21 624 38% 28? 38 

15? 12? lAdDOOfty 078 5S 66 634 13? 13% 13% 

22% l7%IMtaUx 020 1.1 17 88 19 16? 

51? 11%Umtn> 003 01 208154 — 

40 32%UUOTax 176 04 8 188 

S 4%UUMHt 028 4S 5 82 

lO%UW0feFHJ MS 04 
^ &UUMM 
15? 6%U&A* 

18% 11% UEfSfl 
23% 18% USflBr 
29% MUSHoma 
41? 34?USUCp 
24 T1% USSna 
32% i5?lfia«gx 
48% »%uswaa 


51% 45%usn64.1 
36 17% US8 

31% 23%USTx 

51% 48?U5XCunRx 3S0 7.9 
150 95% UAL 
10% 3% UDCHtB 
24% 18? us con x 
11% 5% IJICkic 
27 20% UnH be 
17% 11%IMH 
74% S8%UnBar 

?ioo%u«r 

|42%ltaCanpx 
j 21% UnCartj 
13% 8% Urban Cup 
54% 43% UnBlSO 
67 56 UBS 450 

38% 30% UnBac 
67? S?UW>K - 
28? 23% IMorf’toX 




- T - 

6? OICSTEMr 020 13 24 831 
43% 28% TCF FkWDC 1 DO 2.4 13 5S2 
8% 6? TON Cm fi 04* 02 237 

48% 3*% TDK Cup A 047 M 45 
2% 1% T ISlfega 020 IDS 2 131 z 
29% 18% TJX 058 28 13 844 21 


72 58UhfTK 
14% 12? 


11 ISO 
012 IS 0 880 
020 15 14 1337 
38 81 
2 84 

1S4 35 8 502 35? 

032 15 82 3422 22% Zll 

008 03 8 8744 28% 25% 25% 
2,14 5S 35 7525 40% 40 40? 


a si 5 

3 4§ <S -% 

21 % 21 % +% 


SSu-kRx* 

18 l5?UW«WB 
% ttokMsd L 

: BVlMmnp 
. 17%LhMftp 
30% 24ljUxxto 
58 43UMMCvp 086 2S 121124 


200 11 18 188* 64 

092 6S 13 78 i: 

28 

082 2S 14 

1SB 95 12 

0 

030 25 37 


13% 

40 17 16% 17 

80 32% 32 32% 

31 17% 17% 17% 
48 015 016 015 
SB 12% 12 12 


0J6 45 12 150 21% 20% 21% 
Om 25 22 5B97 28? »% 3? 


3 

11 TO? 

8% 6% 

8 Si 

13% 13% 13% 

82 81 61 

21 89* 43% 42% 43 

9 44 20tft9? 19% 

21 117 25? 25? 25? 

044 IS 10 3188 32% 31? S2 

11 1SB 7? d7 7? 

18 807 16% 16% 18 

2S0 SS 42 114 38 36% 35% 

1S2 25 22 200 uS3 S1% 82? 

- w- 

16 80S 18% 

1S2 04 14 107 29? 

84 2453 — 

ISO 14 12 2000 
038 14491 10 

481440 

088 1.8 18 4*11 38 

064 IS 17 281 34% 

017 07 2420125 2fi% 

004 IS 7 82 3% 

144 19 391Z71S 84% 

IDO 07 8 170 15% 

252 SS 13 198 " 

1SB SlO 8 67 21? 21 

284SI%1M4>B 4SD1S 17 58 234% 233 

35? 18% MlMlX 048 IS 25 351 U36% 

3% 1%WnavM OSB 4S 0 134 2 

18% 13?IMttgM) 020 IS 17 187 16? t 

40% 38% Wataxtanx 2SB 65 26 ISO 37% 

~ 084 6S 14 GBS4 9% 

0.7B IS 15 42 ~ 

053 11 15 419 

024 08 25 823 u31 
4 DO 2D 20 1T95oia>? 199% 158% 
024 15 20 9720 16 15% 15? 

048 IS 17 338 25% 25 25% 

OSB 5S 11 838 17 18% 17 

2Q2B 44% 44 44% 

11 815 11% ID? II 
mnoi 15% 15 15 

050 OB 17 209 ‘ 

028 1DT4B 2 

1SB GS 10 B8B 

020 IS 1918853 U% 

032 02 0 24 5% 5 

27 314 19% 18? 

058 18 5 867 IB? 18% 

1.10 10 46 686 38% 38 

ISO 25 1711588 40% 43? 

010 OS 19 2348 17% 17 

122 12 17 4138 55% 54% . . 

15 55 015% 14% 14% 

034 2D 17 6009 17% 17 17% 

20 04 16? IS? 16% 
ISO 5S 18 176 30% 30% 30% 
O10 1.5 14 222 7 6? 8? 

084 17 14 35G8 31? 30? 31? 

008 08 15 27 M7% 7% 7? 

OSO IS 18 554 11? ID? 11% 

15B 2S 18 347 53% 52% 53 

22 95 11 10% 11 

__ 1S1 54 14 884 26 25% 26 

27% Rtafttarx 1S2 02 11 74 29% 2B? 29% 

. _ ISWtaOx 040 14153 14 18? 1B% 16? 

35 26? Mb) (top IDO 13 B8 3393 30% 30? 30% 

OGD 10 32 9500 30? 20% 30 

016 07 14 215(04% 24% 24% 
080 17 3 6132 18% 16 16% 

010 08 5 15% 15% 15% 

8 445 7? 7% 7% 

048 IS Z7 2024 41% 40% 40? 

_ , . - OSB IS 21 85 19? ^ 19? 

22% 16% WpnHX 044 22 12 87 20^2 20? 20% 


5 

I 

3 


11 8% Wanes 

924% 

11% 7% 

31% 17% 

1604,127% 

18? 14% 

25% 21% Wan Co 
18% 14% wsdcatE 
50 39% tain 
15% 9%moun 
20 % 8%MU0% 
35? 18«OTlGBt 
24% 18%«OTlHaB 
34? 28%mntax 
. 10?1MgB 

8? 4% WatnCaK 
20% ! 3? wan men 
20% 15% Htata 
38 29% WiMOx 
51% 3' 

21% 1 

a; _ 

18 14% WlAnn 
13 

Men IK 



Ss 

17 


a 22%1WRT 

18% wnmaa 
2B%12?Wom» 
18% 14% WMIIMa 
7? 3%WortdCsqi 
53?36%WMar 
20% 16% «*3 LOT 


MB? 87% Xaraxx 
51% 50XOT4.19 

53% 40X3aftop 
25% SYMmEfer 
42% 33? 1M(H 
5% IZapaa 
13% 72nOe 
27? 20%ZerttlW 
7? 6 ? Tanhtncx 

16% 11? 2m 

29% 16?Ziratal 
13? f1%2Mlortoxj 
10% 8% total® 


- X - Y - 2 - 

3S0 IS 54 1642108? 107107% -1% 
4.12 7S 3 54% 54% 54? 


058 1.1 22 1543 
1S2 5S 12 179 
016 04 20 681 42 

OM 29 347 4% 

5 1113 10% 
IDO 19 8 27 25% 
0S311.8 117 7% 

IMP 11 16 69 13 

OSB 45 16 150 18% 
1.06 80 141 12 

084 05 SG6 8? 


50 50% 
21 ? 22 % 
41% 41% 
4% 4% 
10% 10% 
25% 25% 
7% 
13 
19 
12 
8 % 


A 

19 


AksnnOTWar Mata 


Wany WO* nd tom tor ma ntoa toe pnaa mxn Jn 1 1994 
Wan a ** * nx And aaasta to 25 prat «r w bn wan 
ta toi 1^ MWtar moa M SNOT n newi to *i m nxk Otot 



AMEX COMPOSITE PRICES 


4pmctoseAagust31 


W 


Mu. E 100a WBh UmCOTtOng 
520 6 16% 15? 15% *% 

ug .8 a *? 

ai *.rr 
8% +1 


A»K30B 

MtakK 2 7100 

WiU 4 1039 . 

AmlsrPa 1S4 12 2 44% 44 

iAi0L64«S 92 21% 20 
OSS 311957 
AnExpl 2 551 

toqto-AnA 48 170 
ASH MS 072 21 27 

AtaCaCb 27 50 

AM 72113 

MasCWB 0 2 

Audmx A 81294 


OM Ocaon 055 0 6 2% 

bdOWMSxO.73 20 IS 26% 

SMtmTA 004 32 31 5% 

BmvRC 19 161 »% Tl 
BATadrx 071 490 13% 13 

Bean) B 3 2 - , 

Btoto Man 040158 7100 22% 22% 22% 
BtoftadA 70 387 24% 24? 24% 
050 44 282 40? do 40% 
UBiIOO 11% 11% «% 
30 77 3A 3* 3jV 
096 TO 233 22% 21% M? 
1 01241 22 14% 14? 14% 





(tontaco 0301781 

rj«^«ili a r 0 

COocd FM 6 

QtbsATA 064545 
CronoCA 040 43 
CroanCB 040 15 
Cube 053 94 


nr sa 

Ok. E icoa tap! tnramCtog 

78 017 16% 17 -? 

01 }i % ? -A 

22 9% 9 9% 

50 16% Itf* W? 

17 19 18% 19 

27 17% 11 
12 19% 1( 


19 547 0312 


ami 12 

Oknsrtr 28 

Ducsrmun 9 

Ouptn 048 8 


EOT Cox 046 13 
Eialgmm 172205 
EeftoBV 
EcdEnA 
EWstaRl 



S 14% 14% l^a 
42 2D? 20% 20% 
CUB-4258234 12? 12% 12% 
030 8 37 10% 10? 10% 
5 47 7? 7%. 7% 
17 843 36% 35? 38 

3483 15% 15 15% 
132868 (CZ 21 21% 


Fxokxte 064 11 82 32% 

FWAx ADO 15 11 78 757 

FODRySnc 020 13 ZIOO TO? IO? 

FMnU 0» 70 180 2a? 28% 

Forest La 28 1033 47? 47 47 

F%9Mn Bf 4 2 3? 3? 3? 



Saren 

OMFUA 


BaUMD 

(taretofl 

SSCOa 

KBtt 


om 6 75 w? ins 19 
072 14 1296 21? 

0.70 34 175 1 
1 88 
34 10 

034 12 24 S 

2712P 4% *i 4% 



HhOsO) 


HOT 

HmantaA 

ICH (top 
BtotranQr 
tat Coma 


tan 

JMM 

Katama 

MtokCp 

S ? 1 


W St 

Ota. E 100 b Hta tnaOam 

OSB 14 868 31% 31% 31% 

4 49 3% 3% 3% 

3 313 lOA 3% 3? 

015 48 62 10% It 

10 974 8% 

1 845 5% 

012 27 9 11% 

24450 Z? 

100 314 20? _ _ 

006 195088 20% 18% 19? 

4 419 5? 5% 5% 

21 13 14% 14% 14% -% 

20 2 4% 4% 4%' 

20 270 17% 17% 17% +% 
76 42 9% 9 9% +% 



% 


a 


9 144 
13 im 

6 13 1,'# T T 

220 56 13% 12% 13% 
B Z100 27% 27% 27% 



34 135 u9% (&% 


Paw 
Pd MV 
PWLD 

PRttaA 

ar 


N St 

Ok E IDOt KRpt iMOnOM 
024448 403 36% 35% 35? -% 
040 ID 1728 10% 15? 16 

080 18 81 9% CS? 9% -% 
1S4 8 2 17% 17% 17% 

024 18 388 66% 65% 68 -Pa 

050 20 68B38? 37? 38% +% 
012 29 370 22% 21% 22% 

OSB 18 30 14% 14% 14% 


016 0 123 1% 


36 11 
3 112 


034 32% 
6% 5 


1 ? ■& 

34+2% 
6 +% 


sjw (top 
StMJruun 


110 9 
16 


12 35%d34? 35% 
7 18% 18 18 


Tad Pretax OSO 48 8 9 8% 8% 

038 64 414 43% 43% 43% 
68 134 15 14? 15 

32 34 30% 30% 3t% 
T08W 020 18 65 13% 12? 12? 
TtMnQAy 79 46 2? 2a 2? 
Trim 26298 04? 2 2% 

TlOTlkx 7 246 5? 5% 5% 

TareftA 007 671727 18% 18% 18% 
TtanftS 007ttS2060 18% 18% 18% 


4 


3 


US COT 


5 130 
UWOMtt 0201 OB 21 
30 17B 
2381895 3 


24 843 38% 

5783 33% 

29 342 12% 

050 24 313 
1.12 18 «2 13% 12 
080 14 170 31% 30 

5 48 5? 5% 


Vtattrtd 


VffiETx 


JVnmta 



| 

Gain the edge over your competitors by having the financial ^ Times delivered to your home or offica ewwy worior^ day. 

Hand delivery services are available for subserbers in ail major cities throughout The Netherlands. 

Please call (020) 623 94 30 for more information. 

Financial Times. Europe's Business Newspaper. 


Afljmax 

AgOTEs ■ 

AXExpr 

Aka ADR 

AktaaCp 

MSU 

Aflegb 5W 

Aaenoro 

AtaPU 

AflOCM 

Aid cap 

to&C 

AAx Quid 

AHmCo 


Pr tto 

Stock to e in m to ua 
ASS talk 020 I9n00 14% 14% 14% 4? 
ACC On 0121703259 19% 17 18? +1% 

AcdanE 229526 17% 16B 17 -? 

«itt 21 512 25 34% 25 +% 

AcdomCp 39 B83i£?% 26% 27% +1% 
Aitaptadi 1620802 20? 19 19% -1% 
AOCTda 38 625 47 45? 48% 

AOSlOM 21 34 14% 13% 13% 

Ada5Bn 0.16 21 2 35? 85% 35? 

AtfoStf 020 28 8310 32% 3131% 
AduancaC 7 462 9? 9? 9% 

A0»lD9« B 186 4% 4ft 4% 

P&Pctrn a 541 6% 5? 6 

AWTdim 12 390 15? 14% 15>V *i\ 

AAaflBX 020 15 572 32% 3t% 32% +? 

12 882 17% 16% 16% -1% 

010141 1296 12% 12% 12% 4? 
024 181004 U27 2B% 25? 

224 22 B S2%6t% 61% 
452309 32? 30? 31% 

OSB 17 4M 2S% S 25 

18 156 8? 8? 8% 

052 IS 53 40% 39 39% 

6 881 10? 10 10 

IDO 13 54 U18 14? 14? 

080 12 10 14% 13% 14% 

MZ a 10 3% 3% 3% 

DD8 14 791 IB 1? 1H 
305731 30% 29? 30? 

Aw Barter xO. 72 8 611 22 21? 21? 

AtaQyBu 14 2 15% 15% 15% 

AmUanog 26 344 26? 25% 25% 

Am 1MB 13 544 9% 8? 9% 

Aa5oftaadL32 B 1365 4% 4? 4? 

AmRWjB 40 1190 24% 23% 24 

AmGrtAx OSB 172119 30% 29? 30 

AfdntP 2 973 1ft 1% 1ft 

ArnWnx 2SJ 8 6 51? 61 51? +? 

AnftorOmr 384039 19% 19% 19? ‘>% 
Am Trek 12 33l6u15? 15? 15% +% 

Angantnc 20 8501 54% 82% 52% -1% 
AotacflCpxOOB 132152 10% 9% 9% -% 
ArwFta 4 1233 9% 5% 8? +% 

Anatatfc 14 17 16 15% 1S% -% 

Andyxta 052 13 114 15% 14% 15% +-% 
AnDQdtanxiXO 11 122 12% 13% +% 

AftawCp 282553 offi 47% 48*2 +1 
Andros Ar 6 152 16? 15% 18? +? 

Amu EB 030 30 948 15? 14% 15 

APPBto B 174 B? 8% B? 

AppUWd 34MQB 51% 50? GO? -1? 

AOPtaC 048 3231688 S? 35% 35ft -ft 

Applabaa 004 381188 15 14? IS +? 

Arbor Dr 024 45 54 20. IB? 2D +% 

Aictao 028 23 5B1o30? X 30% 
Arpraol 1.18 8 75 30? 29% 30? +% 

Ansar Alx 064 21 310 22 21% 21? +? 

Arnold to 040 17 58 20% 19? 20% ♦? 

ASX Srp 3 2 13% 13% 13% 4% 

AtpadTal 332452 37? 38 37 +1 

AssacCtxm 283 104 25% 25% 25? -% 

AST (torch 
Atttaan 


-% 

-? 

*% 

■% 

4% 


-% 

-? 

-? 

■h 

-% 

■1 

J 2 

-? 

•? 


-? 

-? 

■h 

-? 

-ft 


H Sk 

■wk tar. E lOOa H® OT Uta 

DetOb OexOBO 49 SO 32? 32? 32? 
Ddctava 044 11 161 22? 21% 22? +i 7 « 
DoOQoap 3324716 33? 31? 3?? -? 
MtsOStm 018 18 a 15% 15 15 

tap* 31 4Z7 36% 35% 36% -% 

DepGQr 1.12 6 210 33% 32% 32% -% 

DMxn &2D 5 212 9? 8% 9? +1% 

OH Tech 17 135U22? 21? 21? 

0MB OBQ S 557 18? 16? 17? +1 
DlgMBO 13 S05 14? 14% 14% -% 
OjOTo 93488 15? 14% is? -i% 
Dig Sound 40 143 1% i? 1? -? 

NgSlta 17 053 ul? 4? 4? +ft 

OonQi 18 2B8 35% 34% 35% +1 

ObtaVmn 020 48 279 9>4 8% 8% -% 

MAPtant 1 881 3? 3 3 

DOTGnx 020 2S2E96 2B 25? 25% 
OndlHB 088 14 19 13 12% 13 

DtseoEW 9 4 8? 8? 8? 

Orcstim 11 804 10% 10? 10? +% 

Dray GD 024 22 117 28 25? 25? 

DrugBapo 008 52 92 5ft 5% 5% •? 

(EBacor 1JB 16 429 29ft a 29ft +1ft 

Dutorn 042 14 1110 18? 17% 18? +% 
Out HB 030 24 8d33? 32% 32% 

Dynmch 7 19 21? 20% 20% 


K9ma 

KxmanCp 

KaleyM 

ADyS*x 

Krnudcy 

antd 

Kascfnn 

KLAtretr 

Knuarieooe 

KoGA 

Korcag toe 

lUHtaS 


« Sto 

Cto. E lMa Mph 

- K - 

MB 11 <76 22% 

044 S 409 8? 

4 504 7? 

072 27 592 uT 31% 
011 11 20 6? 6? 
084 14 73 25? 

21 42 10% 


22 22 
9%' 0? +? 
7 7? 

32 +% 

fi? 

S2SA +A 

10 10 % +% 


833469 48% 47? 47? 
712296 4% 4% 4? 
0 160 ft % % 
213 3468 24% 23% 23? 
101242 16% 15% 15% 


- L - 

Leona 072 24 48 19% 19 19% 

LadaFvnxQ.12 39 237 7 6? 6% 

LaraRsdi 40 6254 38 35? 36? 

lOTHter 048 15 898 36% 36% 38% 

Lancs toe 096 18 S5 19% 18% 19% 

UrtnMtan 31 743 24 23% 24 

imop&n >3 9 9? 9% P; 

Usancpe 20 72 3? 3% 3% 

LatBcoS 161482 19 18? 18? 

LnoanPr 048 172177 24% 23% 23% 


- E - 

Eagle Fd 2 125 3% 3 3% 

l& 22381 3% (C? 3% 

3 B 1ft 1ft 1ft 

EOTd 032 234187 TB’x 17% 18ft 
EfltfMWd 229 IBS 7% 8? 6? 

B Panne 1 688 2ft 2 2% *,*, 

BadrSd 12 1024 12% 11? 12% -% 
OGB 50 10 50% 50% 50% -r? 
2110877 IB? 17% 17% ~% 
18 75 6? d5% 6? <•% 
963 ^% 8% Bft +ft 
49 513 1%l 13% 13% 

78 37 2% 2% 2% 

2 293 2? 2% 2ft 

0.10 18 499 4% 4 4% 

0481504291 54% 53% 54? 

284 7? 7? 7% 

55 23 13 12% 12% 

241110 19? 18% 18? 

8 6 8 7% B +% 

10 882 22% 21% 22% 

010 23 365 20% 20% 20% -1 

BscrpAm 22 117 13% 12? 13% +% 


LOGS 

UUCP 


Emem Asa 

B re to n 

EngyVKFB 

EnMrSra 

Bran Inc 

Miffl 

ErksnB 

BMd 

Emsm 


-(? 

*% 

-? 

•ft 


3338788 23? 22i£ 23% 
016 2 5 5% 5% 5% 

19 410u1&? 15% 15? 


-% 
-% 
-% 
-% 
-? 

LegetXCp 143097 24 22% 23% *% 

LBaTett 02D 18 6 13 18 18 

Utolnt 23 125 4% 4% 4% .? 

LOytocM 028 13 16 T4 13% 14 *>4 

lU fir IIS 791 135 134 134 -1% 

LtoottT 052 15 712 15% 15% 16% *% 

UxtatyM 12 235 » 29% 29% -? 

LhaarTac 03* 382468 48% 44? 44? -1? 
UgoBox 040 17 6 34*2 34% 34? 

Lobmbd&p 0D6 39 893 25% 24? 25? -% 

Lone Star 9 45a 6? 6% 6? +ft 

3225887 42% 39*4 40? -1? 
LTXCp 32174 4? 3? 4 

LVMH 078 4 125 33? 32% 33? +% 


n Sto 

Stadi Pto. E max re® (am uat 
PWtaB 012 91509 17 16 16% 
Pyramid 61220 0% 8% 8? 

QuadraLog 11 458 7% 7 7? 

QustHOm 082 89 12 17ft 17% 17% 
OutiftM 020 16 287 23? 22? 22? 


Quanta 

QMkd* 

OVCtoc 


fttattM 

Mys 


71 5332 16 15% 15% 

20 » 13? 13% 13? 
302756 45? 45 45 


■»% 

-? 

-? 

-? 

*rt 

-? 


Raymond 


- M - 

005 21314m 25 24% 24ft -% 

21 1ST 24% 24% 24% 

080 45 44 14% 14% 14? -? 

xtD8 15 56 34 33% 34 *% 

ItapnaPar 13 171 29 28% 29 

Magna 6rp 078 13 648 20% 20% 20% -? 


ID On 
MS Cart 
Mac Ml 


1134608 10% 17% 18 -«-% 


13 42 
a SEMI 032 21 1176 


Auttfc 


Aimtato 


BEI Bx 


048 243811 
9 703 
Offi 17 02 


10 ? 10 10 % 
30 29% 29% 
62 80% 80% 
3? 2? 2? 
S? 5? 6? 


-% 

-? 

-% 

-% 

4? 


BatoH W1 
BatoJ 
BHmiLB 
Banctac 
BnkSoXh 
BantosQj 040 s 
Btadaorth (UO 15 


- B - 

(US 30 14 5? 5? 5? 

10 628 12% 12 12 
100 ft ft ft 
008 122820 20% 20 20% 

024 3 SO 14? 14? 14? 

18 802 U25 24 24? -f% 
05C 12 7285 19? 10 19? -% 
11 15% 15? 16ft 
44 25? 24% 25% -% 


BartaGeo 052 16 391 34? 33% 33% -% 

Basse! F 080 18 204 29% 28% 29% +ft 

Bay Wen 050 13 3 24? 24? 24? +? 

Bsynarta 1 JO 13 86 GO? GO 60? 4-% 

B88TRnx 1.W 9 375 30% 29% 29% -? 

BE Acre 21 7U 8% 8% 8% 

BawdCK 042 33 207 15% 14? 14% 4? 
Ban&Jsiy 14 2S1 15% 14? 1«% 
BeWayVffl 044 13 80 36? 96? 3B% 
BHAfirp 012 IB 35 1110% 11 

88 365 4? 4? V. 

015 TB 293 11? 11% 11? 

OOB 18 181 14% 14% 14% 
543191 51% 50% 50% 

19 1854 11? 11% 11% 


Bltoc 
Big Bx 
BtodkyW 


Btornst 


■% 

+% 


IT 

Bor Bren 


-ft 
♦? 
*? 
-? 
-% 

BOTDrgxIM 11 172 31 30*4 31 4-1 
BMCSoTbr 1320824 43? 41% 43% 4-1% 
SX1J6 104005 33% 32? 33% 4% 
rent 029 19 684 21% 20% 21% 

SB 14 24 29*4 28% 26% 

16 1962 13? 13 13% 

Boston Bkx 078 6 07 37? 35% 37*2 
BOTnTc 55 2838 12? 11? 12? +? 
BradyWA 088 TB 3 48? 47% 48? 4-1? 
Breneo 024 27 378 12% 11? 11? 4% 
BrunoS 026 176460 B% 8% 8% 4-% 
BSBBncpx 07B 9 1Bu29? 28% 28% -% 
BTShkno 048 4 354 a? .2% 2? +ft 
291344 20% 19? 19% 

22 M4 12% 12% 12% 

34 210 9? 9% 9? +? 
65 90 34% 33% 34% +1? 
Budaiurg 7 480030% 30 30? 4-? 


- C - 

CTac 230 1 34 23 22% 23 4% 

COT UKl 6 83 5% 5? 5? 
CadSdrept 1.37 17 2481 30? 29? 30% 4-? 
CMwntCnmO 19 848 16 15 15% 

Cam 4 375 414 7% 7% 7? -% 

Caapn 225 7 866 12? 11% 12? 4% 
Cal Merc 22 704 24% 23% 23% -% 
Candafito 1 1035 1% 1? 7ft 
CaatataL 2 1 53 4? 3% 

Cndag 4 46 2% 2? 

Canon Inc 052120 9 87% 88% 

Canonic 3 85 5ft 5ft 

CarrtaH 010 21 357 39% 38% 38% 
CaitonCm OSS 22 16 28? 28% 28% 
Cascade (160 22 24 25 24 24 

CtozyS (108 18 12BZ 11^7 11? 11% 
Catena 5 288 7% 7% 7? 

caacp 19 6 12 12 12 

Cardreor 7 3887 14% M? 14? 

CoURd 1.12 12 845 33% 32% 33% 
tall Spr 20 510 10? 09% IQ 
tanaar 8 183 4% 4% 4% 
Chapter 1 dm 8 2082 u24 23? 23% 

anna OOB 124545 0 8% 8? 

Chantoli 17 41 12? 11% 12 

OaxxMor 13Z100 3% 3% 3% 


- F - 

Ftf&p 11 4 5 4% 4% 

Farr Cp 024 35 38 6% 8% 6% 4-% 

004 82 898 40*4 39% 30% -% 

Rftod 173512 27? 26? 27 -? 

FWIW 124 15 871 52 51? 51? -? 

RftyW 7 548 5% 5? 5? -ft 

RggtoA 024 0 662 9% 9 9ft -ft 

Ffena 3224m 23% 22% 23 

FW Am 084 81191 34% 34 34% 4% 

FstScOMo x IDO 11 223 25? 24% 25? +% 

RsffioBk 080 21 243 24 23% 23% 

FstSectyx 1JJ4 12 319U32? 32 32? 
FMTern 1DB 11 947 47? 47% 47? 

Fxt*hstl 036 7 Z100 9 9 9 +? 

extadMcx OSB 7 312 25? 24% 25 

Radar 1JM 8 419 u3S 34? 34? ? 

41 22 7? 6% 7? +% 

Rsare 291744 23% 22? 22% +% 

Row tot 20 478 7 8% 7 +? 

FoatA (LOB 162543 6 5% 8 +% 

FoodB 009600 2091 6 5% 6 +% 

RfBoret 108 10 53 32? 31% 32? +% 

11 S7 12% 11? 11? -% 

rA 34 63 3% 3% 3% 

Frtflfta 1JM 12 121 30% 29? 30% 

FWFW 040 8 330 16*2 15% 15? 

FttHMlxl.18 12 74 30 29% 30 

Rltorffl Q5B 24 1794 39% 37% 38 -1 

Fitourfta OOB 11 73 21% 21 21 

Foot 024 22 48 17? 17% 17% -? 

FutmadAOfl 21 56 3% 3% 3? ? 


-G- 

SIApg B 147 3% 3% 3% 

KKSenr 007 24 37 18 15? 16 

tates 0 37 2% 2? 2? 

tato Rb 9 62 3% 83% 3% 

Sett Co 016150 70 6% 6 B 

(tort Bind x 04020 114 20% 10 19 
tatyto 19 467 5 4% 5 

taatoPh 42846 11? 11 11% 

BonttocCp 4DD 37 734 22% 21% 22 

Genus he 162 830 4? 4? 4? 
tesyma 62 1095 34? 33*2 34 
Otaunax 040 9 BOB 15% 15% 15% 
GkhtaigsL 012 14 4571 19 18% 19 

IA 080 17 10 15? 14? 16? 
GWiBori 11 7 5 4? 5 

Oort Guys 16 278 13 12% 12% 

taddffop 080 10 500 21% 21? 21% +% 
tadenSys 2871280 U3? 2% 2? 
tanka 020 67 47B 20% 19% 20% 
tasnAPx 02* 11 4 18 17% 18 


+% 

-? 

-? 

+% 

•1 

+? 

♦? 

*% 


*ft 


Orecuni 


tad Mr 
GTl tap 
GbNY Svg 


0 473 

1 948 
8501094 

0 113 


% 

2% 2? 
13 12% 
13 12? 


8 790 ID? 10 10? 


+? 

+? 


3% 

2 ? 

87 «% 
5ft +A 
-A 


■*? 


Itapufip 
(BOG Cu 


Usance 


HacNnso 


+H Hotogt 


+% 

+% 


7 940 4% 3? *?. ? 
677341 H? 09% 69% -? 

1 28 18 124 55? 55% 56? +% 
017 30 234 32 31% 31% -% 

291424? S? 27? 217% -% 
109 643 3ft 2ft 2ft +ft 
133*030 28? 24% 24& -1ft 

CbBanqrxIDB 17 877o31% 30% 31 +% 

Hbr 21 21 8% 6? 6? -? 

CHs Dr 43 55 12% 12? 12% +% 

8 570 5 *% 4? +? 

OoeataaSxIDO 17 78 29 3? 28? 


CHpsSTa 

QWonCp 

CtonFto 

CtafesCp 
QmaLgc 
OS Tack 
CtaSp 


- H - 

52 3 5% 5% 5% ? 

068 B Z> 21% 20? 21% +1% 

020 14 38 IS? 15 IS? 

016 279063 u3* 32? 32% 
2t1Z24u27? 28? 26? 

005 18 40 11% 11? 11? 

102696 7 6% B? 

018 24 3884 14% 14? 14% 

15 10? 10% 10% 

9 879 15% 14? 15% 

072 14 278 21% 20? 21? 

Hogan Sys 0.15 23 274 7? 7% 7{| 

B5 2925 U14% 13? 14? 

Home Bert ODD 8 13 20? 20? 20? 

Hon tods 044 18 307 27 25% 25% 

Horrteck 134142 12% 12 12% 
Hocsrtffcs 044450 63 4? 4? 4? 
tax JB 02) 19 1260 1S> 4 18? 19 
taXtogn 080 92913 21? 21? 21? 
tan CD OOB 0 283 2? 2% 2? 


MenTtuy 


-% 

+% 

-? 

+? 

♦% 

*? 

~it 

+% 


MW Bor 13 381 8% 7? 8? 

MarcanCp 23 341 10% 10 10? -? 

9 Dr 12 328 5 4% 4% -% 

Market Cp 9 40 42 41? 41% -% 

tan* « 3 65 1ft 1ft 1ft +ft 

18 470 8% 8% B? +% 
tarensn*A044 11 12 11? 11% 11% -% 
MO 11 1038 20? 30? 20% 

9 449 8% 7? 8? -ft 
taatolht 46 929 61% 60% 60% -% 

CP 0 982 41J 4% 4? +ft 

McGrath R 044 12 12 18% 15% 15% -? 

D48 163005 20 19% 19% 

McCWC 17415MB tfi4% S3? 54? -% 
Inc 016 17 41 14 13? 13? -% 

048 15 1050 u26 25? 28 +% 

034 101151 u8 8% 8% +% 
Cp 018 54 177 16% 18% 18? -? 
MOWS 024 232893 10? 9% 10? -% 
Mrortj) 088 122825 21? 21? 21? +ft 
Mercury B 070 7 782 28% 28 28% +% 
Markfisn 1.38 127192 32% 31 32? -? 

9 555 9% 9 9? 

MOlodeA 012 171647 17% 16% 17 +? 

UFSta 373421 35% 34 35% +1 
F 020 20 148 12? 12% 12? 
MdiNUB 200354 620 78% 77? 78 -% 
9 120 3? d3? 3% 

9 1564 13? 12? 12% 
Mmicara 8 906 7? 7? 7? 

10 BIS 6 5? 5? -? 
Mbps* 2 718 7? 7 7? -? 

1 738218 u58%d22? 58? -> 4 
MdAdM 23 5928 26% 25? 26? +? 

052 12 1528 30% 29% 30? -? 
UUwtaln OSO 25 112 30% 30% 30% 
■OerHx 052 184171 2B?d23? 25 -1 

Won 406 24? 23% 24 -? 

20 420 Ul 5? 14% 15? +? 
UofileTd 573878 23% 22? 22? -? 
Modem CD 020 19 20 7? 7% 7? +% 
MoOTMIxOS?20 127 29 28% 28% -? 

004 1GOOU39? 39 39? +? 
Motexkc 004 322765042% 42 42% +% 
004 131117 7? 6? 7? +? 
IP USE 24 260 32% 30% 32? +1% 
WCalfcs 18 197 15ft 15*4 15? 

MTS Sys 056 9 17 23? 22% 22% -? 

14 2711 31? 3131% -? 
5 353 10? 10? 10? +? 


NACRe 018 11 490 2E% 28 ) 4 28? 

Nadi Fnch z072 12 188U1B? 17% IB +? 
NSCunpU(U610ai436in3? 13 13 +■? 
nrcSOi 020 20 52 13% 13 13% 

GDO 11 89 17? 17^2 17? -% 
IK 041105 218 61% GO? 81% +? 

19 316 30? 29% 30% -% 

Nsta&Gn 28 3214 19% 19? 19% +% 

NelwkS 12B 1652 9 8% 9 +? 

Naungn 7 328 5% U5 5 ~% 

027 38 839 35? 34? 35? +% 

(tone Bus 080 20 94 18? 17% IB -% 

Mrwtoaga 182 G93 15 14? 14? -? 

MrrdBlMrt 241430B 32? 31% 32 +? 

NS««(tCp 004 18 87 06% 8? 8? -? 

Od 21 1708 6? 6? 6? +? 

056 28 340 G1 59 59 -1% 

X O40 272745U47? 46% 47 +? 

I 14 25 19? 19% 19? +ft 

N Star (to 4 158 5ft 5? 5ft +ft 

NorttoTst 088 12 883 38% 37% 38% +? 

JAVA* 201425 19% 18? 19 

Nnel 7B1Z3640 15% 15? IB? -i t 

Nmrefes 40 2958 45% 44% 44% -2% 
HPCA 94 6? G% 8? 

(EC tap 7 3 2? 2? 2? 


MJtoA 

(topHgai 

ftp WOT 

Rnrcixnd 

RbuWsx 

Rsmlne 

OwFst 

nuedws 

RflNgra 

RoehStBk 

ftosmlt 

IOTSB 

RotocnMad 

9mm 

RPM he. 

RS Rn 

RyanRrty 


- R - 

11 457 12? 11? 12? 

3 523 4? 4% 4% 

1 137 4% 4 4% 

a 20 u20 19% 20 

14 2114 15% 14? 13 

14 50 15? IS 15 
1 296 3% 3 3 

5 47 3? 3 3? 

18 558 11? 10% 11 

0.40 152235 47? 46% 46? 

9 68 5? (U% 5? 

080 10 18 35% 34? 34? 

1.40 21 1490 64)2 63 B4 +% 

012 11 18 B? 5% S% -? 
058 S 842 19? 18% 19? -? 
044 3 2588 18? 18 16ft -ft 

020 12 559 16? IS? 18% 

28 52S 23? 23 23 
088 59 283 19% 18 19 

0£2 203149 17? 17? 17? 

UO 14 14 23% 23% 23% 

12 538 6? 6? 6% 


-% 

*% 


-? 

-? 

-? 

•? 




196 


- s - 

8 9m 54? 54? W? 


+? 

-? 

-% 

•% 


MOTTarti 

HycorBto 


179 499 
18 5 


33 31? 32% 
4? 4? 4? 


-? 

-? 

•? 

-? 

+% 

-? 

+% 


COftEngy 125 S2fi 8% 5 6% 

CDdsAtann 3011G3U12? 11% 12 

CognciQ] 30 814 19 IB? 19 

CogniB 9B 836 ID? 10? 10? 

Oahsrex 18 270 13? 12% 13? 

Magm 040 85 173 21% 21% 21% 


-? 

*? 

•% 

-}* 

+% 


tad Gas x VB 13 22 22 21% 21? 

COW Srp 060 11 287 30% 29 30% 

Com* 024 18 661 a? 2B 26? 

cmeftx 009 194400 16? IS? 16 
CmcdASp x 0 lO9 41299*8 16? 15% 18 -? 

CtmraBkstsam 12 84 833 32? 33 -1? 

Coma 070100 617 19 IB 19 +1 

ComanC 164726u25? 22% 24? +1% 
CcmprtOT 3521197 10% 10? 10ft +ft 

Gnsuferc 40 24 9? d9 9 

Cansbddi 37 213 3? 3% 3? 

Cftftp 128 33 B 48? 46? 48? 

Casstom 4 BSD 5% 5% 5? 

contdca 44 1G 18? 17% 17% 

CMrDta 11 33 7? 7? 7? +ft 

GDOtAX 050 22 604 20? 19? 20? 

Copyuto 381091 & S? 5ft -? 
GonfaQi 24 8283 55 52% 55 -.81 

tap a A 48 142 17? 17 17? +% 

tartar B 002 30 2708 ZB% 25% 25? -% 

Cray Cano l 831 1% ifi 10 

Omnfts 27 810 4? 4% 4? 

Cyogwi 2 230 4 3% 3% 


msys 

06 Damns 

EtoW 
tomuen 
hurenagso 
taped Be 
tod las 
totRss 
Warmfic 

fcaJnniMrt 

■VEMO 

tottgriJw 
UgkSys 
-? | hW«W 
total 
UeB 
ItpB 
War TP 
- HBtaA 

-? kdmn 
-? torakaf 

-ft 
-? 


-? 

-% 


tnanWc 

HOatyQA 

bXfts 

Kit TOW 

tonem 

taroBgaCp 

unxodB 


- I - 

43 48 7 dB? 7 

285*89 9% 9% 9? 
31106 4 3% 312 

30 249 5? 5 5? 

2 360 4? 4? 4? 

(MO 33 254 17% 17% 17? 
024198 4 13? 13? 13? 

17 3215 14% 13% 14% 
2817414 24% 23? 23? 
088 16 186 12? 11? 12? 
£820519 23? 22? 23? 

31 103 D13 12% 13 

6 200 2? 2 2? 

024 1248282 67? 85% 65% 

8 50 2? 2 2? 

040 2S15G97 15% 14? 15? 

19 BOB B% 8 8% 
0L» 17 96 13% 13 13% 

31072 s? 9? - 9? 

4 4460 4% 4 4% 

5 319 12? 12? 12? 
21807a 11% 10% llii 
14 44 17% 17% 17% 

092 18 53 2% 2J1 

900 012 6% 5? 8 

005 21 187 31? 31 31? 

1 22B 2? 2? 2? 
16 48 17? 16% 17? 
1.09 39 16212? 211212? i 


+? 

-ft 

-? 

+? 

-? 

+% 

+? 

+? 

*% 

• 1 % 

+% 

+% 

*% 

+? 

-? 

-a 

+% 


-1? 


- o - 

OChsrtoye S 218ul4? 13% 13% % 

Octet tan 192821 24% 23 24% +1 

QftarsLg 14 787 14 13% 14 +? 

OptotsyN 080 10 SB u31 29% 31+2% 
OhtoCtx 1^6 61749 32% 31% 31% 
OUKortX 1.16 11 1078 35% 34? 35% 
OUNaBBx 092 16 74 37 38>2 

Otooosp IDO 7 354 31 30 30? 

OnePfca 12 164 15% 15% 15% 

OptefflR 21 131 22? 22% 22? 

Grades 8213807 43% 42? IZft 

(MScnca 471467 18? 18 18? +? 

OrtXXEdi 099 27 84 10? B? 9% 

QntodSupp 8 258 11% «1 11% •+? 
Oragarttol 031 8 81 5? 5% 5% 

Odto 18 160 3ft 3 3ft 

OshfcBA 041304 385 15% 15 15% 
OsMssliT 050 11 BB 11 10? 11 

OttorTsfl 1.72 14 28 32% 32 32% 


+ J 4 

*? 

-% 

+? 

♦? 

-il 


-ft 

t% 

+% 


- D - 

DSC Cn 1833409 29? 3% 2B? 
ttert&oox 013 20 2 73 73 73 

QKzStfta 12 162 2? 2% 2ft 

Dtadtal 30 85 7% 7? 7% 

Dattwop* 15 99 15? 14% 15? 
DauptMp OSS 11 412 25? 25 25% 

DSP snaps 020 19 155 8% 6% $% 
DetobEn 032 24 422 18 15? IB 


■ J “ 

JUSnadt 14 2884 12? 12? 12? 
JOTitac CL2B 13 20 9? 8? 9 

JL6 tod 010 32 54U37% 38? 38? 

Jdnnw 50 nov 23? 23? 23? 

Jooeslrt 11 4m 15 1«? 14? 

Jones Med 01D 10 366 7? 8% 7? 

+% I JoOTCpx 150 14 70 30% 29? 30% 

-% I JSBFIn ODD 17 98 27? 28? 27? 

JroUg 028 19 SB 19 IB? 1B% 

+% i Juth 0.16 925® 12% 11% 12 


+? 

-? 

-% 


A 

+1 

-? 

+ ? 


-p-a- 

Ptacari 1® 13 905 SO? 49% 50 -? 
PBcDortop 058 13 123 13? 13? 13? +% 
PTdon 132 15 » 23% 22% 23% +? 

301881872% 70% 72 +? 
337592 30 28? 28? +? 

024 40 747 33*2 32% 32% -% 
21 14 9? 8? 8? -% 
030 46 1B8 11? 10% 10% -? 
B 114 15? 14% 15 

fonlAgx IDO 23 19 34 33 33 

PtoXdr 072 18 379u41% 40% 40% -lj 
FMOTI 14 318 5? 5% 5J3 +A 
PenweaL 020 27 1® 24% 23% 24% +% 
feoptotH 032 143582014% 13% 14? +? 

1.12 16 *100 29% 29% S% -1% 

36 322 12 11? 12 +% 

28 617 5? 5% 5? 

0.48 3 2 9? 9? 9? +? 

32 973 15% 14% 18% +% 

44 7a 17% 16% i7*4 +1 

PkxrarfpxOM 31 2B54U48? 44% 45? +2 

PtaawHI OK 21 3422 31% 31% 31% -% 

PtonoeS 012 9 358 17% 18^2 17? +>* 

Ponce Fed 5 201 5? 7? 7? 

PM IS 83 8% 5% 5% J* 

Pres Lie MS 3 457 fi? 8% 6% 

presses 1703938 46% 42? 46+3? 

PWCast 2316830 16 15% 15ft +ft 

POT PM 38 88 5 4% 5 +? 

Pttxnnl 30 508KT7? 15% 17% +1% 
RM Ops 024 22 » 25% 25 25 -% 


partita 

Paranoic 

Pajctw 

Pavuftn 

Pastes 

PemTily 


Panels 

fTwraacy 

RWarTek 

Ptaadi 

PWurete 


Eanaeraai 030 1 4 259 IB? 18? 18? 
ScttmtoA 030 19 1149 28% »? 26? 

SO Med L 101423 37% 38% 36% 

sa Syatm 15 2206 19 18? 19 

SOT 8 1237 7? 7% 7? 

SCOT Cpx 0S2 91298 19% 1B% 19% +? 

Score Brd 51375 4? 4? 4% ■? 

SsaSela 13D 45 2100 37? 37? 37? 

SWto 1113034 34? 23? 24 -% 

SQta 016 37 531 21? 3121% +? 

SatoetoB 036 4 135 2ft l£ 2 +,% 

Setockns 1.12 16 79 28% 28? 28*1 +? 

Ssguent 7B 3876 16% 16 16? +? 

Seouato 34 635 5% 4% 5? 

Sere TOT 13 95 10 9? B? -% 

ssreftao 177759 4? 4ft 4% +ft 

Sevoman 022 17 148 19% 18? IB 1 * 

Shrtfc*l 084 18 1160 25 24? 25 +% 

SHLSystrc 2 388 5ft 4i> 5,% 

SharBMX* 34 479 21% 20% 20% -? 

S»«* P 71135 B% 7? 8% +? 

Siena On 18 732 22? 21 21% +% 

StorraTuc 4 IN 3? d3 3? +? 

SunAJx 0331B2E55 35% 34? 34% .% 

SonaDes 191985 7% 6% 7% +? 

SKcnVBc 005 82 287 12? 12? 12? -L 2 

SfcsVGp 38 3658 13? 12% 13 

Staprenx 040 14 396 12 11? 11? -? 

SfriMU 42 410 31 30% 30% -? 

SnapptoBv 3571978 I3%d13% 13*2 -% 

SrftureP 1 520 3? 3% 3? +ft 
Sonoco 056 164027 22% 22 22% +% 

StoXhMx 088 10 751 21% 21? 21% -? 

Spiegel A 020 412164 19% 18? 19% +? 

aJudsttl 040 14 2087 3S% 34? 34? -? 

StPSOTc 030 10 348 21% 21 21 -% 

StyH 1 221 2% 2 2ft -ft 

fes 487599 31? 29? 30 

ShdBSlr 060 1811® 40 39? 40 

SUIKra 13 8920 19% 10% 19% +1 

Sto Regis ODB 15 82 22% 21? 22% +% 

Steal Tec QN 21 758 19% 18 19% +1% 

SBAdjUSA 020 431864 12 11% 11% -? 

SUM 1® 2 21% 21% 21% +1 

SBMtoCI 1.10 14 86 23 22% 23 

SbictDy 172032 8% 8 8% +? 

Shyto 028 28 8054 36% 34% 35? -1% 

SOTanD 22 15 15 14% IS +% 

SwttomoB am IB 2 23% 23% 23% 
SunmQ Be *184 14 5® 22? 22? 22? +% 
ScenmUTa 341128 33*2 32? 32% +% 
Suntan 10 3 4% 4% 4% 

tadUBc 1427932 28? 26% 28? -% 

Swift Tra 41 40u40% 40 48? +? 

sytxaetac 501 BUS 44% 43% 43? 

Symantec 37 1785 14 13% 13? 

tarttay 040 19 75 19? 18? 10 

synarcom 85 593 4% 4% 4% -ft 

Symgan 1 1228 5 4% 5 +% 

Synalfc 64 1® 15% 15% 15? -% 

Synoutfcs 14 5510 16% 15? 18? 

SyamSoft 012 16 1540 14% 13% 14** +% 
tastomko 30 853 18% 18% 18? +% 

System* 36 821 7? 7% 7% 


- T- 

T-CaVSc 611® 3% 3? 3? 
TjwwPk 052 201157 33% 31? 32 -I 

TBCCp 13 946 10? 9? 9? -% 

TCAQdXs 044 29 5B2 24? 24? 24? +? 

Tadfiato 12 522 18% 18 18% +% 

Taaxnseh ODO 13 41 49% 47? 49% +% 
TeMac 3 4 8% 8? 8? +? 

TOTSya 8 755 12 11% 11% -? 

Tdettt 81814 5% 5 5% +% 

Telaos 30 3035 43% 42 43? -? 

Teton ta am 88 462 15% 15 15? +% 

Taira Tec 80 1571 9% 9% 9? +? 

TevaPhA® 026 29 2048 29? 28% 28% -ft 

Ttoaa tan 7224517 68? 88? 66K -ift 
TJht O22 29 S330 19% 18 19*4 -% 

Tolas Mad 32387 5? 4? 4? -? 
Tokyo Mar 034 37 31 62? 82? 82? +? 
Ton Brawn 593135 11? 11% <1% -? 
Tapps Co 0283581851 7? 6? 7? +ft 
TPTErxer 3 116 7? 6% 5% % 

TranswM 10 BS 11? 11% 11% 

Tranwtc* IDO 11 4 39? 38% 39? +? 

Titan* 20 32 2? 2% 2? +ft 

TiUiXXa 682881013? 12? 13 +? 

Trts&oBkC 1.10 11 BS 22? 21% 3? ♦? 

Tseng Lab 020 13 885 7% 7? 7? -% 

TJpsFdAx 0081862021 £4*4 24 24% +% 


mum 

Wab 


- U - 

084 15175® 43% 
2 1314 5? 


42 43% 
5? 5? 


OCOesOsx IDO 14 278 17? 1$li 17 


\JST» 
(tollen St 
ItoSoB 
ItoflJto 
USBanep 
IK Energy 
USX Corg 
Utah MM 
UdTslav 
UBx 


VngrdCel 

Vertuns 

incur 

wearpHs 

vfcwto* 

WSTaeh 

WMB 


200 12 SB 52% SI? SOU 
040 8 560 10? 9% 9? 
012 21 14 27 28% Z7 

IDO 27 1® 50 49% 50 

IDO 11 2255 27% 27% 27% 
27 44 4? I 4ft 
1.12 9 119 12% 12? 12? 
15 273 9? 9? 9? 
11 58 51 50% 51 

11 488 3% 3? 3% 


- V- 

030 36 15 16% 15% 16% 
1072004 28*4 27% 3 

33215 21? 21 21? 

38 101 25% 24% 24% 
102915 17 14% 18*4 ■ 

233272 ZO 18 16? 
3011266 14% 13% 13tf 
017 3 2£7 19 18% 18? 


r1% 

+% 

-? 

+% 

+? 

♦i 

u 

-? 

+% 

■H? 


*? 

■k 

+? 

^2 

-«? 

-ft 

-% 


- w- 

WamarEfl 010 19 596 26 25% 25% -? 

WBrrntotti G8 65 4? 4 4? 

WOTGfctSBO.72 714® 21? 20% 21? +ft 
WadffldSL 084 9 280 21% 21? 21% 
WBDsMAx 02 ID 1073 24? 24 24? +% 

wasau PM 024 16 493 28 24% 26 +? 


WP-40 


Wert One 

W0U) 

WstpStA 

WHSaglA 

Wtottx 


-»8 

♦ft 

*? 

-? 

♦ft 


240 16 6N 41% 41% 41 

5 620 3% 3 3 

072 12 IN 31 30? 31 
1010B3 13% 1231 13? 

1 348 14? 14? 14? 

9 35 3? 3? 3? 

QOS 254015 Si? 50% 51? 
MtOTunra 851829 42 41% 41 H +ft 

WBlahaBLxOm 14 155 1^4 16? 18% +? 

Wthngtx 040 Z7 1742 a22 21? 21? 

WPGrara 003 22 840 3fi 3ft 3ft 

Wymarvfitaiwo 2 «6 6% 6? 8fi -ft 


- X - Y - 2 - 

an* 287286 45% 44 44% -1? 

Xante tarp 2 3585 8? 2? 3? ■+? 

Yedcrw a»l 882270 2D? 18^ 20% -ft 

Writ ROT 184 111 E 4? Ml 

SanaUWi 1.12 10 BB 40? <0 4tf»a ♦? 



36 


WORLD STOCK MARKETS 


FINANCIAL LIMES 


Thursday September 1 1994 




Profit-taking emerges 
as carmakers weaken 


Wall Street 


Blue chip stocks succumbed to 
profit-taking yesterday morn- 
ing, as a weak bond market 
encouraged investors to 
regroup after the recent surge 
in share prices, writes Frank 
McCarty in Mao York. 

By 1pm, the Dow Jones 
Industrial Average was 3.24 
lower at 3,914.06, but the more 
broadly based Standard & 
Poor’s 500 was off a scant 0.35 
at 4*75.74. 

Stiff, advancing issues were 
outnumbering declines on the 
Big Board by an impressive 
four-to- three margin, in moder- 
ate volume of 170m shares. 

In the secondary markets, 
the American SE composite 
gained OS9 at 45&5S, and the 
Nasdaq composite was down 
0.69 at 765.77. 

On balance, the day's con- 
flicting economic news was 
neutral for the stock market 
The Commerce Department 
reported a M per cent decline 
in factory orders, against fore- 
casts of a 2.0 per cent fall 

The slowdown supported the 
notion that the economy was 
codling down enough to delay 
the Federal Reserve’s move to 
tighter money. 

The credibility of that sce- 
nario, which was responsible 
for the recent rally in share 
prices, was reinforced by the 
monthly survey of Purchasing 
Management Association of 
Chicago. The trade group said 
that its August index of busi- 
ness activity receded from the 
previous month's level 

However, the prices-paid 
component of the Chicago 
report showed a big jump, 
a wailing the inflation -sensitive 


bond market. With Treasury 
prices slipping, equity inves- 
tors took a breather after run- 
ning up the value of Dow 
industrials by 4J5 per cent over 
the previous six sessions. 

But the profit-taking 
remained light. General 
Motors, off $% at $51'A, was 
showing the biggest drop 
among the 80 Dow compo- 
nents. 

Some of Gifs weakness was 
probably linked to a renewed 
concern over Chrysler's future 
performance. Shares in the 
third- largest US car maker 
were marked down $1% to $48% 
on reports that company insid- 
ers had sold stock valued at 
$7m in late July. Ford shed $% 
to $30. 

Semiconductor stocks were 
the session’s hardest-hit sector. 
Texas Instruments plunged 
$4% to $78% after SoundYiew 
Financial Group downgraded 
the issue. Earlier, a Japanese 
court rejected the company's 
da™ of patent infringement 
by Fqjitsu. 

Micron Technology, which 
was also knocked off Sound- 
View’s “buy” list, was down 
$1% at $41%. 

Nor Am Energy, a leading gas 
utility and pipeline operator, 
surged 21 per cent to $7%. The 
net gain of $1% came in 
response to a decision, by a fed- 
eral court in Houston to throw 
out a longstanding lawsuit 
against the company. 

In the pharmaceutical sector, 
which has come to life amid a 
flurry of high-profile acquisi- 
tions, Warner Lambert gave 
bade $2 to $84%. During the 
previous session, the stock 
bounded $5% higher to set a 
52-week high. 

Many investors were betting 


Canada 


Mexico 


Mexico eased in early trade in 
reaction to a larger than expec- 
ted Increase in domestic inter- 
est rates. 

The IPC index slipped 9.28 to 
2.723.56 after Banco de Mexico 
raised foe 28-day Treasury BOl 
primary rate by 51 basis points 
to 14 per cent in its weekly 
auction. 


Easier bullion price hits S African golds 


Gold and mining-related stocks closed slightly 
lower as the bullion price softened, while 
industrials were flat, with a stronger financial 
rand tending to cap activity. 

Industrials also continued to be depressed by 
fears about government spending and an 
upward trend in inflation, in spite of reassuring 
comments by President Nelson Mandela. 

Golds eased 9 to 2^88, the overall index lost 


11 at &833 and industrials dipped 4 to 6£35. 

De Beers fell R1.50 to R103 and Anglos 
receded HI to R259. 

Midwits went against file easier trend in 
golds, moving forward RL50 to RlS, while 
Loraine shed 50 cents to R21J25 and Kloof 
dipped 25 cents to R67. 

Rnnrirnal ended unchang ed at Has after news 

that it would merge with Trans-NataL 


EMERGING MARKETS: IFC WEEKLY INVESTABLE PRICE INDICES 

Market 

No. at 
stock* 

Dollar term 

Augustas % Change % Change 

1994 over week on Dec TO 

Load currency tarras 
August 28 % Change % Change 
1994 over week on Dec TO 

Latin America 

(209) 

748.81 

-0.0 

+15.1 




Aigentina 

(25) 

Q49J34 

4&a 


582.90957 

+35 

-45 

Brazil 

(57) 

485.04 

+2.3 

+74.0 

1.345,857,578 

+1.6 

+1524.4 

Chile 

(25) 

720.17 

+3.9 

+305 

1207.02 

+35 

+265 

Colombia' 

UD 

828.01 

-7J5 

+28.5 

1,19858 

-7A 

+295 

Mexico 

m 

989.82 

+2.1 


1^444.10 

+25 

+75 

Pern* 

PI) 

14652 

+4j0 

+21.5 

199.45 

+45 

+25.4 

Venezuela 5 

(12) 

536J7 

-25 

-93 

2,09852 

-25 

+475 

Asia 

(557) 

272.47 

-1.6 

-6 A 




China* 

(18) 

102422 

-02 

-315 

11071 

-0.4 

-325 

South Koran 5 

(156) 

131.95 

+UJ 

+11.7 

mi2 

+05 

+105 

Philippines 

(18) 

317.68 

+02 

-6.7 

399.76 

+15 

-105 

Taiwan. China 1 

m 

155.85 

+i5 

+155 

154.40 

+2.1 

+104 

India' 

(76) 

139.11 

-1.1 

+19.4 

153.84 

-15 

+19-4 

iiKKjntraia - 

07) 

109^3 

■»3.0 

-12.4 

128.19 

+35 

-105 

Malaysia 

(105) 

303.48 

-2.7 

-105 

28557 

-2.7 

-155 

Pakistan* 

PS) 

397^7 

-0.6 

+2.4 

550.80 

+05 

+45 

Sri Lanka” 

(5) 

184.77 

-ai 

+42 

197.42 

+05 

+3.4 

Thailand 

(55) 

41020 

-2.8 

-125 

41257 

-2.9 

-145 

EunVMM East 

(125) 

124.34 

■3.4 

-28.6 




Qraeoa 

(25) 

219^5 

-4J 

-3.7 

355.11 

-15 

-7.6 

Hunoaiy" 

(5) 

197.18 

+ae 

+185 

25657 

+0.6 

+285 

Jordan 

(13) 

101.80 

-os 

-2.4 

231.02 

-1.1 

-35 

Potand” 

(12) 

728.74 

-6.1 

-11.1 

154857 

-5.9 

-55 

Portugal 

PS) 

124.61 

-a7 

+0.4 

13754 

+1.0 

-0.4 

Ttakey” 

W 

128.74 

-42 

-40/4 

1549.16 

+03 

+345 

Zimbabwe’- 

(5) 

260.47 

>4.3 

+28.9 

31058 

+4.4 

+45.4 

Composite 

(891) 

381^7 

-0.0 

+1.7 





KKW W» ra fc U M a J X e nd MH *. and wm*V ctmgm wv pwomqp oownanf Ion tfwpnriouf Map. Bm m dm. 
Hcaui ML (V*C » rwt: R|0 k JI l» gMm a WOT: Wk Jt IMS; (SUM 3 IS SC* (QJm 4 rssr,- p)M>v a IM& 
Dtc 31 IMS (IIBec 31 1932: 030*: 01 IMS (t JM« 4 TUB* (T«Mp 2 ISO. 


SOT-IOO i 
38 IMtSMrl IMI.-fld 


Politics continued to dominate the Brazilian market last week as the latest opinion 
polls suggested that Mr Fernando Henrique Cardoso could win in the first round of the 
general election on October 3. At the same time, steady inflows of foreign cash 
continued to bolster the local currency, which has appreciated against the US dollar by 
11 per cent since the reals was introduced on July l. 

Mr Anthony Parker at Baring Securities commented that experience showed that 
successful investors traditionally sold when the market looked expensive and bought 
when it looked cheap, but the country could now be at a watershed and have a 


reforming president for the next four years, or even longer. 
“This could mea 


mean that Investors will continue to boy,” he said. “We think the market 
could comfortably go up by another 15 per cent before Investors become worried about 
the multiple. Much higher than that, and yon would be in a ratified atmosphere.” . 


EUROPE 


Paris volatile after rises in lending rates 


that the company's line of con- 
sumer products would make it 
an attractive takeover target 

It was a relatively quiet day 
on the Nasdaq after eight 
straight sessions on the 
upswing. 

But Castle Energy Jumped 
$2%, or 20 per cent, to $17, its 
highest level in the past 52 
weeks after the company set- 
tled a contractual dispute with 
Metallgesellschaft, the German 
group. 


Toronto was mixed in sluggish. 
midday trade as gaftin in pre- 
cious metals and consumer 
products were offset by losses 
in. firianrial services and trans- 
portation. 

The TSE 300 composite Index 
receded 4.04 to 4^29.67 in vol- 
ume of 31.0m shares. Advanc- 
ing issues outpaced declines 
by 275 to 259, with 298 stocks 
flat 

Gaining indices included 
gold ffuri precious with 
Franco-Nevada leading the 
advance with a C$2 rise to 
C$80%. 

Lac Minerals firmed C$% to 
C$15 in heavy turnover after 
Tuesday's news that Royal Oak 
Mtnns had scrapped its take- 
over bid for Lac. 


Bourses took little interest in 
today's Bundesbank meeting, 
with 19 of 2d European econo- 
mists t ellin g Reuter that there 
would be no change in German 
key interest rates today, writes 
Our Markets Staff. 

PARIS was volatile, the CAC 
40 index hitting an early low of 
2,038.44 after Wednesday’s 
post-bourse rises in French 
banks’ base lending rates; in 
the end, the key index man- 
aged to shrug off a drop to 
bond futures and closed 8.71 to 
the good at 2JK9.08. 

Turnover rose from 
FFrLSfibn to FFr3.5bn. Alcatel, 
already depressed by recurring 
allegations of over-billing, fell 
FFr6 to FFr599 on an item in 
the Canard Enchains weekly 

which Covered similar {jnnrnii. 

Once again, the company 
denied the allegations. 

AGF, the' insurance com- 
pany, produced lowo: first-half 
profits as expected and, again 
as predicted, forecast higher 
profits for the year. The shares 
fen FFr2.20 to FFr228.10. But 
some firmnrialH benefited from 
the rise in bank base rates, 
Soci6t£ G4nfirale putting on 
FFr7 at FFr582 and BNP 
FFr3.40 at FFI 250 .50. 

FRANKFURT saw corporate 
mfHianflfla in the mo rning , flnri 
derivatives pressure In the 
afternoon, as the Dax rose 2.00 
to 2£\2Jt5 on file session, and 
subsided to 2^07.09 at the post- 
bourse close. Turnover rose 
from DM7.6bn to DMSAfan. 


Alcatel Afetiyom 



1 FT-SE Ac 

■tusne 

s Share 'ncitces 


1 

Aug 31 

tarty dmgu 

Opm 

1030 

1150 

T2JU 

THE EUROPEAN SEW^ 
1100 1460 1660 Ctan 

FT-SE Eontmck 100 
FT-SE Emm* 200 

1401.04 

146057 

140400 

146343 

140MB 

148347 

T40U1 

148350 

140S31 ■ 140644 
148*39 146439 

140555 140542 
1462.17 148UB 



Mg 30 

Aag 26 Aug 23 4ng 24 

Mb 33 . 


FT-SE Bntacfc 100 . 140150 13KL89 ■ - 137077 1350*1 

FT-SE Onto* 200 145043 14405B 143167 141032 

bm* urn (wtw* HUM*: in - wour. aoo - hums mi*: ids - wslw an - uawa t raw 


134778 

140010 


On the session, a DM9.70 rise 
to DMBS75Q in Daimler, which 
reported USstyie net profits of 
DM369m for the first half 
against a comparable loss of 
DM949m, was offset by general 
weakness in the automotive 
sector and. In particular, a 
DM6.50 fall to DM498A0 at 
Volkswagen. 

Rumours of a VW rights 
issue were rtanind by the com- 
pany but a fall of DM6.50 to 
DM4S&50 on the session was 
extended after hours, leaving 
the stock at DM49&20. Brokers 
said a fall to the Dax fixture 
brought share prices down in 
t he afterno on. 

ZURICH saw farther strong 
ctomnnH for hawM-ng ' and insur- 
ance Stocks lift the SMT inttor 
9.9 to 2,645.6, and above the 
2^40 resistance Level. 


Among the recently under- 
performing banks, UBS bearers 
rose SFr7 to SFrU.74 and CS 
Holding by SFr8 to SFr552. 
SBC gained SFrl at SFr380 on 
its plan to buy Brinson, a US 
asset manager, for the equiva- 
lent cf $750m, which will be 
paid over seven years, and 
Bom iff of it in SBC shares. 

CSba bearers dropped SFrlS, 
or 22 per cent, to SFr808 in 
response to its fiat first-half 
results, which were hit by tur- 
bulent financial markets ear- 
lier in the year and the 
strength of the franc. 

Roche certificates picked up 
SFT130 to SFr6,100, with US 
and British investors said to be 
switching from Cfba. Sandoz, 
winch reports interim figures 
today, saw its bearers advance 
SFr8 to SFiTSQ. 

MILAN'S early attempts at a 
rally ran out of steam as a 5 
per cent toff to Olivetti soured 
the mood. The Count index fifr 
ished L71 higher at 69053 in 
very thin trade. 

Olivetti foil L112 to L2.I23 
«md its industrial holding com- 


pany, Cir, finished L82, or 3.6 
per cent, down at IA219. 

Mr Andrew Haskins at 
James Capel noted that the fall 
came after some weeks of vola- 
tility in the Olivetti price. 

~ He said three factors had 
weighed on the shares. Most 
relevant were worries about 
possible provisioning against 
currency losses and losses on 
bond holdings. 

The sale by DEC, of the US, 
of its 8 per cent stake bad also 
prompted some concern, and 
there 

was also the spectre of a 
renewed round of pricecutting 
in the pc markets; but Mr 
Han kins noted that Olivetti's 
market share had already 
grown and lower prices were 
likely to lead to a largo: global 
mark et. 

AMSTERDAM was depressed 
by an unexpected downturn to 

firstrhalf net profits at Bolswes- 
sanen, the drinks group. 

The AEX index fell L56 to 
419.44 as Bolswessanen 
dropped FI 4.10, or 10 per cent, 
to FI 36.90. The group 


announced an 8 per cent 
decline to net profits, com- 
pared with expectations of a 
rise, and analysts downgraded 
full-year forecasts. 

Among publishers continu- 
ing to benefit from a switch to 
defensive stocks, Walters Kto- 
wer rose a further 80 cents to 
FI 122JL0, and VNU was SO 
cents higher at FI 186.40 ahead 
of its six-month figures which 
came after the market closed.- 
In the event, the group's 32 per 
cent profits rise proved, to beat 
the lower end of expectations, 

- MADRID stayed in' the dot- - 
drums, turnover falling from 
Ptal5.7bn to Ptal32bn as the: 
general index closed 1.16 lower 
at 312.02. Brokers blamed the 
weaker dollar and losses to the 
debt markets as a result of 
higher French rates. 

Fans of Acerinox, the stain, 
less steels producer, wore con- 
soled by a 58 per cent rise In 
profits and a share price Pta280 
higher at Ptai5,530. 

ISTANBUL lost nearly 4 per 
cent, the composite index end- 
ing 1,039.12 off at 25,282.43, 
with many investors sidalmfld 
by money market fluctuations. 

WARSAW fell 4.4 per cent to 
light volume, with buying dis- 
couraged by negative technical 
si gnals, the Wig index dosing 
517.4 down at 11,181.4 as turn- 
over dropped by 20 per cent to 
622.0tm zlotys. 


Written and edited by WHHam 
Cochrane and Mfcfcaef Morgan 


ASIA PACIFIC 


Wall Street’s ebullience inspires 


Rim 


Tokyo 


Reports of the development of 
an advanced plastic optical 
fibre prompted investor Inter- 
est in telecommunications 
companies and optical fibre 
makers, writes EntBco Terozono 
in Tokyo. 

The Nikkei 225 average 
closed 36.41 up at the day’s 
high of 20,626.53 on Index- 
linked buying and purchases 

by Some domestic inaHtiitinfna. 

The Index fell to a low of 
20,533.51 in the morning, but it 
was supported to the afternoon 
by small-lot buying on reports 
of the optical fibre develop- 
ment, and of a consortium of 
45 companies planning to com- 
mercialise it 

Volume totalled 264m shares, 
against 18L2m. Same investors 
bought telecom stocks ahead of 
Japan Telecom’s listing next 
Tuesday. The Topix index of 
all first section shares edged 
ahead 3D2 to L64&39 and the 
Nikkei 300 gained LOS at 299.25. 
but declines led rises by 519 to 
389, with 224 issues unchanged, 
to London the ISE/Nikkei 50 
index eased 0.80 to L338.66. 

Mitsubishi Bayun, the day’s 
most active issue, advanced 
Y47, or 11 per cent, to Y472. As 
the leading plastic fibre manu- 
facturer, it will be participat- 
ing in the consortium. Brokers 
and investors piled into the 
stock, which did not trade dur- 
ing the morning due to a lack 
of sellers. Other beneficiaries 
included NEC, ahead Y2Q at 
Y1.220, Fujitsu, up Y10 at 
Y1.090, and Sumitomo Electric 
Industries, a leading telecom 
cable company, which finned 
Y10 to YL500. 

Other telecommunication 
stocks were actively traded. 
Nttsuko climbed Y40 to Y1.620 
and NTT moved ahead Y13.000 
to Y912.000. 

to Osaka, the OSE average 
receded 2056 to 22^52 D5 in vol- 
ume of 435m shares. 


dosed for Malaysia's National 
Day holiday. 

HONG KONG’s Hang Seng 
index finished above 9,900 for 
the first Unis ainffp mid-March, 
rising 24253, or 2J5 per cant to 
9,929.39. Turnover climbed 
again, from HK$5.19bn to 
HK$&50bn. 

Brokers said the visit to Bei- 
jing by US commerce secretary 
Mr Ron Brown rekindled 
American Investors’ interest in 
Hong Kong as well as in China. 

Jar dine Matheson surged 
HK$4.75 to HKJ72.75 and Jar- 
dine Strategic advanced 
rap an to HE$32. They had 
lagged behind the recent mar- 
ket rise, and news that share 


trading of the companies will 
shift to Singapore from Janu- 
ary 3 after delMing from Hong 
Kong boosted interest 

BOMBAY hit an all-time 
high, the BSE 30-share index 
adding 62^1 at 4^58806 on good 
company results and a normal 
monsoon. 

Brokers said, this bull market 
had more virtues than its pre- 
decessor which peaked over 
two years ago; the latter, they 
added, was fuelled by money 
which came from the inter- 
bank securities market and led 
to the country's worst ever, 
$U8bn financial scandal 

The scandal involved lookers 
and bankers who colluded to 


divert money from the securi- 
ties market to the then boom- 
ing Bombay bourse. Share 
prices crashed after the scan- 
dal was exposed in April 1992. 

BANGKOK posted its fourth 
consecutive gain on foreign 
buying of banking and commu- 
nications blue chips, and on 
active speculative trade. The 
SETT index closed 32^0, or 22 
per cent, higher at L52183. 

Turnover increased from 
BtlObn to BtI8.6bn. Banks 
rose 3J) per cent in Bt5bn of 
turnover, and communications 
by 4-3 per c ent in Bt2Jbn. 

SYDNEY’s golds gained 1.4 
per cent as the All Ordinaries 
index put an 5.6 at 2,122.1. The 


Perth-based Orbital Engine 
jumped 19 cents, or nearly 11 
per cent, to A$L94 on its devel- 
opment of a cheqp fuel injec- 
tion system for motorcycle 
an ginas, claimed to cut poflu- 
ttan by 95 per cent and boost 
fuel efficiency by 45 per cent 

WELLINGTON was lifted by 
well received results from 
Fletcher Challenge, which 
appreciated 13 cents to 
NZ*L1S, a 2904 high for the 
i ndus trial conglomerate. The 
NZSE-40 index moved up 15.67 
to 2448.48. 

KARACHI remained under 
pressure due to political uncer- 
tainty, the KSE 100 index feU- 
ing 34.56 to 3486 JO. 


Roundup 


The bullish trend in New York 
was echoed and. In some cases, 
amplified. Kuala Lumpur was 


I FT -ACTUARIES WORLD INDICES I 

joMy cempMd by Thu Financial Timas LKL, Goidmen, Sacha 8 Co. and NdNVaat SeoMta Ltd. in conjunction wflh the Irattuta Of Actuaifaa and the FacuBy of Actuaries 

NATIONAL AMP 

















Ffguraa In paianihaaw 

US 

Day^ 

Pound 



Local 

Local 

Gross 

US 

Pound 



Local 



Year 

Ntow nuntMr of km 

OoXnr 

Ctwnge 

Swring 

Yen 

PM 

Cunancy 

%«ha 

Div. 

Dollar 

Stadho 

Yen 

DM Canency 92 weak 52 week 

BOO 

of atock 

Max 

% 

Index 

Index 

Inoart 

Index 

on day 

Yield 

Index 

hdn 

index 

Index 


«0h 

Low i 

iwnw) 

Autn8a(Sn 

iaaia 

0.1 

174.18 

113.48 

14851 

181.19 

ai 

352 

17952 

17423 

11359 

14858 

181.10 

189.15 

13024 

14751 

Austria (17) 

192.70 

-ai 

10033 

12150 

15854 

158.01 

-0.4 

1JJ1 

19250 

188.70 

12314 

15858 

153.81 

195.41 

18454 

17333 

Mghjm(37) 

.17+49 

02 

168.72 

10953 

14357 

139.72 

-02 

358 

174.17 

16858 

11034 

14355 

14006 

178.78 

143.92 

14558 

Canada (104) 

135.10 

05 

13071 

06.18 

11158 

13358 

ai 

253 

13456 

130.68 

8850 

11158 

133.77 

14551 

12054 

12758 

Danmaifc <33) 

25252 

-03 

244.17 

153.09 

207 AS 

214.14 

-09 

159 

353.40 

24558 

10054 

20355 

216.16 

27079 

22CL58 

22058 

Finland 04) 

-17330 

-0.3 

168.15 

loses 

14259 

18857 

-07 

075 

174.43 

16851 

11050 

14358 

18752 

174.43 

10458 

10958 

France (07) 

17624 

-05 

17041 

11153 

14451 

14954 

•06 

254 

17753 

171.44 

11316 

146.71 

16048 

18657 

16034 

108.70 

Germany (58) 

147.73 

0.9 

14255 

93.07 

12159 

12159 

07 

1.70 

146.45 

14152 

9378 

12053 

1JQ S3 

147.75 

12459 

12458 

Nona Kong pi) 

— 39459 

3J 

38158 

24047 

324.07 

38151 

35 

313 

38304 

smm 

24304 

31454 

37308 

50858 

29308 

29388 

Mand fl4) — 

2ML08 

25 

20121 

131.10 

17059 

194.18 

25 

328 

204.00 

10755 

12954 

16750 

19001 

20953 

16154 

1605S 

My (50) 

8322 

-0.0 

8047 

62.43 

6858 

98.33 

-1.1 

157 

8372 

6157 

5354 

6851 

100.01 

97.78 

6758 

7853 



164.06 

OA 

15063 

10356 

13451 

10355 

-05 

0.74 

1S340 

15834 

10352 

13449 

10352 

170.10 

12454 

18019 

Malaysia (97) 

...>54956 

aa 

531.40 

34023 

49158 

54008 

08 

153 

646.02 

927.79 

34550 

44358 

63659 

02153 

387.74 

387.74 

Mexico ( 16 ) 

— 2300.49 

-12 

2224.44 

144950 

169057 

850055 

-15 

157 

2327.78 

2254.17 

1474J3 

101&64 

8001-to 

28474)8 

T61&11 

1782.73 

NaTwriend ffT) 

215.70 

-0.4 

20857 

13559 

17754 

174j41 

■07 

328 

21858 

20951 

13756 

17852 

17558 

21752 

18025 

184.04 

NawZariand !14) 

—72.74 

-05 

70.34 

4553 

59.77 

64.19 

-04 

3.72 

7311 

7080 

4852 

80.17 

6454 

7759 

9022 

81.18 

Nanny (23) 

— 20848 

0.1 

201.69 

131.34 

17150 

19S.74 

-03 

150 

2085? 

20158 

13154 

171.41 

19850 

211.74 

18552 

17355 

Sho>C»«(44) 

36153 

05 

34858 

22754 

29050 

249.71 

■0.1 

156 

361.42 

34059 

22857 

29758 

2SO08 

37852 

28450 

28450 

South Africa <610 — 

30151 

aa 

29155 

189.78 

24750 

29952 

04 

2.10 

29858 

MOM 

18323 

24553 

gQBta 

305,44 

17553 

19044 

Spun (42) 

143.71 

432 

138.96 

90.53 

118.08 

14256 

0.4 

454 

14354 

13956 

91.19 

11047 

14356 

166J9 

12088 

14027 

Sweden pB) — 

220.63 

-0.7 

21354 

moo 

18159 

25255 

05 

158 

22318 

215.16 

14078 

16367 

25456 

23155 

17&83 

18854 

Swfcznriand MTL-— . — 

1B1.97 

03 

15081 

10254 

133.08 

13351 

0.1 

151 

18153 

16843 

10334 

13255 

134.04 

17656 

13558 

13658 

tiMad XModorn COD 20353 

-02 

190151 

128.03 

I6SL99 

18651 

—04 

358 

20374 

19759 

129.08 

18758 

18758 

21A98 

181.11 

18329 

USA PIT) 

194.32 

03 

18750. 

122.42 

169.67 

19452 

05 

378 

19387 

16755 

12370 

159.40 

193.87 

198.04 

17858 

188.71 

EUROre (718| 

175.02 

-0.1 

16854 

11026 

143.81 

158.76 

-03 

253 

17550 

18955 

11059 

144,10 

15028 

17&58 

1S358 

1S7.14 

NordkPIB) 

218 

-05 

209.07 

13652 

17757 

211.33 

-08 

1.40 

21750 

21043 

13757 

17854 

21258 

999tn 

173.18 

17657 

padte Baain (74Q 

— 17352 

08 

187.79 

10052 

142.59 

114.19 

ai 

158 

17357 

187.12 

10953 

14304 

114.11 

17056 

134.79 

164.0S 

EUTD-Pactflc (I486) 

17453 

03 

18858 

10954 

143.00 

13156 

0.1 

158 

173SS 

16858 

10855 

14254 

13159 

175.06 

14358 

181.10 

North America (El)___ 

190.65 

05 

18455 

120.11 

15065 

mi? 

03 

378 

19003 

18452 

12059 

15040 

18955 

19373 

17557 

18456 

Europe Be. UK 1514) 

150.15 

0.0 

15059 

8657 

12850 

13858 

-03 

257 

1S&18 

18152 

9093 

12852 

137.06 

158.12 

13457 

13753 

Fadfle Ex, Japan (278)..- 

-_._2K.68 

1j4 

25658 

16758 

21659 

23651 

15 

374 

28308 

25350 

16654 

215.71 

233.12 

29021 

20013 

20334 

World Ex. US (1847) 

1755B 

03 

180.78 

iiaaa 

14458 

135.61 

-ai 

1.87 

175.13 

10058 

11085 

144,14 

135.74 

17037 

14658 

18157 

world Bl UK 08801 

..-17857 

05 

17256 

11250 

148.73 

14952 

ai 

301 

17755 

17333 

11374 

146.46 

14946 

17857 

10658 

16757 

World E*. So. At BIOS 19050 

03 

17454 

113.40 

147.90 

152.73 

0.1 

319 

17349 

17351 

113.71 

14753 

19389 

16000 

16854 

18858 

WcxM Ex. Japan P6S5) - 

.—.,191.71 

02 

19557 

120.78 

15753 

18347 

01 

250 

101 58 

18020 

121.18 

16750 

18320 

19520 

17454 

17857 

tim World hdex (2+6«) 

BC33 

05 

174.77 

11357 

148.62 

15351 

ai 

318 

16023 

17453 

.114.16 

14856 

153.72 

18075 

15855 

18041 


OvMn. r>B Ybm UmiM, ObUma. SMla Md CO. and NMMMt 

UM prteae worn UI 1 I— Ml W W arWnn. 


BMUMUiM. 1W7 



This Autumn IMF and World Bank decision makers will gather In Madrid for their annual 
meeting. On Friday, September 30 to coincide with this Important event, the Hnandaf Tfrnes 
wHI publish its IMF/ World Economy and Finance survey. 

tt win provide au thorit a tive, comprehensive and up to the minute background to the 
proceedings in Madrid. As a consequents it will be essential reading for all those who bring 
Influence to bear on the world economy. 

The Financial Times wtfl be widely distributed at the conference and the survey wffl 
appear every day In those Issues circulated at the meeting. What this provides is the perfect 
medium for you to speak directly to this select body of people. 

If you would Rke to advertise in the FT IMF/World Economy and Finance Survey contact 
Hannah Puisatl In London on +44 71 873 4167 or your usual Financial Times representative. 



S' . , V 1 

•-* • . 




■** 


- -;■» ' 






s ■ 




:4wr- 

srz? 

iCT.r 1 . 

Ik--::- ■ 



Financial Times 


UMDON - PAfUS ■ raANXnmT • NCW YORK -TOKYO 


1 





FINANCIAL TIMES SURVEY 


KANSAI 


A beautiful window 
of diverse pieces 

Deregulation, infrastructural developments and its 
own resourcefulness all contribute to the region's 
confidence that it can at last compete with Japan's 
national capital, writes Michiyo Nakamoto. 


I n a recent television 
advertisement, aired in 
western Japan, demons 
that bring poverty in 
national folklore were shown 
dressed in rags, stalking the 
grounds of Osaka castle. On 
hearing erf the convenient new 
Kansai International Airport, 
they decide to take advantage 
of its opening to fly east to 
Tokyo. 

The joke, at the expense of 
the Japanese capital, captures 
the current mood in 
the region made up of the six 
prefectures of Osaka, Hyogo. 
Kyoto. Nara, Wakayama and 
Shiga that span the western 
stretch Of Japan’s main islan d 
of Honshu, between the scenic 
Lake Biwa on the east and the 
Chugoku mountain range on 
the west 

After years of trying to catch 
up and compete with Tokyo, 
and of suffering unflattering 
comparisons with its more cos- 
mopolitan rival as a result, 
Kansai has recently begun to 
feel a greater confidence in 
what it has to offer as an alter- 
native to the capital. 

“The advantage of being in 
Kansai is that you are less dis- 
rupted by political noise," says 
Mr Tsuzo Murase, executive 
vice-president of Matsushita, 
die world's largest consumer 
electronics group, which has 
its headquarters in Osaka. 

Businessmen point to the 
greater openness of Kans ai 
people to new ideas, compared 
with Tokyo, their ability to 
make quick riarfa inn*; and their 
talent for spotting new busi- 
ness opportunities, as evidence 
that the region is better suited 
to the more competitive busi- 
ness environment in the 1990s. 
Confidence in the region is 


such that the 21st century is 
being hailed as the era of Kan- 
sai. as opposed to Tokyo. 

What Will make TCancq ii so 
special in the years ahead, 
according to its proponents, is 
the different opportunities the 
region offers from Tokyo. For 
one thing, its relative proxim- 
ity to the Asian continent and 


; thissubwey • 

Tred£fiafcs wflft Asia \ ; „ *. 
A pnftfcat consensus^ : 
fthpact of a new airport : 

Small busfarassas squeezed . 
Witt drugs groups merge' 

That taugftteribUStoess y- yv 

KyotocatefxatBS qutatiy ■ 
Suggestfon^ fpr tourists; vt 


the large number of non-Japa- 
nese Asian visitors it receives 
each year, gives Kansai a bet- 
ter chance than Tokyo of capi- 
talising on the huge potential 
for growth that the continent 
holds. 

The recent momentum 
hphtnii deregulatio n in Japan 
also offers hope that, as the 
central. bureaucracy in Tokyo 
is forced to loosen its tight 
hold on economic life, Kansai - 
birthplace of many unique new 
businesses, ranging from 
karaoke and sushi served on 
conveyor belts to capsule 
hotels - will be better able to 
capitalise on its gift for coming 
up with enterprising ideas. 

Even the diversity and tradi- 
tional lack of cohesiveness of. 
the Kaniai region - a curious 
collection of six prefectures, 
each with its own distinct cul- 
tural and historical identity. 


which seem to have little in 
common except their proximity 
to Pfloh Other — Is twgmning to 
be appreciated as a source of 
the region's vitality. 

Mr Maiiafiimi Onishi, chair- 
man of the Osaka chamber of 
commerce and industry, and of 
Osaka Gas, likans Xarwari to a 
s tained - glass window in which 
very different parts make up a 
beautiful whole. 

But the infectious optimism 
that pervades ifanari estab- 
lishment stems also from a 
conviction that, with the 
recent completion of a range of 
ambitious infrastructural pro- 
jects, the region is finally com- 
ing into its own. For the first 
time in many years, Kanaai 
people feel they have every- 
thing that their compatriots in 
Tokyo have. 

From this month, the region 
will have the impressive new 
international airport that is 
slated to offer Japan's first 24- 
hour air terminal services, and 
which will be a hub for domes- 
tic flights. Osaka Bay, along 
which lie some of the region’s 
most vibrant cities, such as 
Osaka itself and Kobe, a 
famous port, Is now the proud 
home of no fewer than three 
man-made islands, one of 
which is the gife of the new 
airport. 

The narrow corridor of sea 
that separates the city of Aka- 
shi, in Hyogo prefecture, from 
Awaji island will soon be 
spanned by a spectacular sus- 
pension bridge that, it is 
claimed, will be the longest in 
the world. And further south, 
just off the coast of Wakayama 
prefecture, another artificial 
island has been built to accom- 
modate Japan’s biggest 

marina- 


Thursday September 1 1994 



Osaka stock exchange is the world's forth largest by capitaBsation; wide the city's business paric pnsaf), near the castle, has changed the skyttne m*i ptenw AaNey Acmaod 


On land, a vast science, cul- 
ture and art centre, covering 
15,000 hectares in the three 
prefectures of Kyoto, Osaka 
and Nara, is taking shape; 
while the skylines erf principal 
cities in the region have been 
transformed by the high-rise 
office buildings and expansive 
business parks, such as the 
Osaka business park near the 
Osaka castle, that have been 
built in recent years. 

This frantic investment in 
infrastructure, which is costing 
the regional economy dearly, 
was Kansai ’s response to a 
sense erf crisis that gripped its 
economic leaders several years 
ago. Unless some thin g was 
done to revitalise the region, 
they feared, its vitality could 
be sapped by the growing dom- 
inance of Tokyo and its neigh- 
bouring prefectures on the 
Kan to plains. 


Tokyo, the centre erf Japan's 
political, economic and cul- 
tural life since the end of the 
war, seemed to have every- 
thing; while Kansai, which 
encompasses the anriant capi- 
tals of Nara and Kyoto as well 
as the merchants’ city of 
Osaka and the port city of 
Kobe, has long been regarded 
as a region steeped in history 
and bubbling with creative 
ideas, but not quite able to 
claim the world-class stature of 
Tokyo. 

W hile Kansai’s 
gross regional 
product is equal 
approximately to 
that erf Canada, and is forecast 
to exceed that of the UK by the 
year 2000, there has been a 
strong feeling among the busi- 
ness community that the 
region's economic vitality has 


not received the recognition it 
deserves. 

Osaka, Kansai’s economic 
powerhouse, boasts a stock 
exchange that is the fourth 
largest in the world by market 
capitalisation, global giants 
such as Matsushita, and the 
largest concentration of phar- 
maceuticals companies In the 
country. Its history as a mer- 
chant town has encouraged an 
entrepreneurial spirit and an 
openness to new ideas that is 
unknown in Tokyo; and it has 
created a distinct culture that 
gave birth to such national 
phenomena as Yoshimoto 
Kogyo, an entertainment com- 
pany that has provided Japan 
with most of its famous come- 
dians. 

Kyoto and Nara, two ancient 
capitals, are treasure-houses of 
traditional Japanese culture; 
while Kyoto is the home of 


many vibrant new businesses, 
ranging from the industrial 
ceramics leader Kyocera to 
Nintendo, the video games 
company. Kobe, a famous port 
renowned for its tender beet is 
also a bustling commercial 
centre. 

Despite these accomplish- 
ments, Kansai has, for much of 
Japan's post-war history, felt 
that it has been forced to play 
second fiddle to Tokyo. More- 
over, in recent years the 
increasing concentration of 
wealth and information in the 
capital has led many busi- 
nesses that originated in Kan- 
sai to move their headquarters 
operations to Tokyo. Kansai’s 
share of Japan's GNP fell from 
1&2 per cent in 1980 to 17.2 per 
cent in 1990, according to the 
Centre for Revitalising Kansai 
Industry. 

Concern among Kansai busi- 


ness leaders about the deterior- 
ating state of the economy had 
prompted a long period of col- 
lective angst, particularly in 
Osaka, as tbey jealously 
watched Tokyo reap what 
seemed an unequal share of 
the benefits and the glory of 
Japan’s post-war economic 
miracle. 

However, the gradual com- 
pletion of big infrastructural 
projects is raising hopes that 
the region now has the means 
to compete for both business 
and recognition. In the next 
few years, it will have the 
means to accommodate its 
expected growth in economic 
activity. 

The bigger immediate chal- 
lenge is to show that in the 
aftermath of a prolonged 
nationwide recession and a 
regional spending spree, it can 
still generate that activity. 





armula (for) Success ] 


Kansai is Japans fastest developing region. Home to 1 7 % of the country's entire 
population, it contains the cities of Osaka, Kyoto, Nara, and Kobe. A highly indus- 
trialized region, Kansai s GDP is already the equivalent of Canada’s or half that of 
France. And that's just to start. 

As the 2 1 st century begins. Kansai is set to be one of the most prominent business and 
economic hubs for the entire Pacific Rim. Take a look at the signs. The opening in just 
a few days of the Kansai International Airport, Japan's first 24-hour major airport. The 
impressive number of ongoing and scheduled private and public sector projects to 
reinforce Kansai s infrastructure. And much more on the way. 


It all means better growth potential for Kansai Electric. Even as you read this, power 
demands in our service sector are increasing. We're also effectively implementing 
some of the most advanced and environment-friendly power technologies around, as 
well as researching alternative power production. Diversifying into telecommunications 
and heat supply fields has also proved very productive. Factors like these backed by 
solid management and international recognition of Japanese power industry 
reliability helped us achieve Moody's highest credit rating. 

Use our formula for quick success. It's been proven. 


O KANSAI 


ELECTRIC POWER COJNC. 

3-22, NAKANOSHIMA 3-CHOME 
KITA-KU, OSAKA 530-70 JAPAN 
TEL-8 16-4-46-6360" FAX:8 1-6-44 1-0569 

'Financing Soction dirad line. 






KANSAI II 


The economy: Michiyo Nakamoto finds popular optimism running ahead of actual recovery 


Feeling good under grey skies 


The ticket vending machines 
at Osaka station offer a conve- 
nience unknown in other parts 
of Japan. Instead of having to 
patiently insert one coin at a 
time, ticket buyers can throw 
in up to five coins all at once. 

Right in front of the station, 
the traffic lights inform pedes- 
trians how much longer they 
must wait for the light to turn 
green. 

The ticket machines and 
traffic lights suit the restless 
nature of the tradesmen of 
Osaka, the commercial heart- 
land of the Kansai region, 
where the pace is fhst and the 
people are iradri - or impa- 
tient, in the down-to-earth 
local dialect 

Lately, the innate impatience 
of Osaka folk, coupled with 
their natural optimism, has 
extended to their views of the 
economy, prompting a growing 
feeling that the recovery which 
the whole of Japan has been 
anxiously waiting for, has 
finally arrived. 

It has arrived, Osaka street 
wisdom has it, not in Tokyo 
but in the Kansai. 

Even the national press has 
hi g hli g hted the recent plethora 
of publications on Eansai, the 
increase in new car registra- 
tions in June, and the jump in 
travellers to the cities of Kyoto 
and Osaka this year, and has 
concluded that Eansai is fur- 
ther down the road to recovery 
than Kanto, the region consist- 
ing of Tokyo and its surround- 
ing prefectures. 

“Although it may not show 
in the statistics, people say 
that there is a liveliness in the 
Eansai economy,” asserts Mr 
Takaharu Aid tak a,' general 
manager of the Eansai econ- 
omy research department, at 
Daiwa Research Institute in 
Osaka. “There are no bright 
spots on the horizon in Tokyo 
as far as the economy is con- 
cerned, but as a region. Eansai 
is feeling healthy,” he says. 

But available evidence 
hardly justifies such confi- 
dence. The region's gross prod- 
uct fell last year for the first 
time in 18 years, by 0.1 per 



Osaka Buabteaa Park was developed to meet demand for office space 


cent Osaka's business district 
suffers an embarrassing abun- 
dance of empty offices, and the 

streets ate Uttered with “for 
rent** signs. 

Commercial land prices in 
the Osaka area fell 19.5 per 
cent in 1992 and 24 per cent In 
1993, while residential property 
prices saw a frill of 23 per cent 
two years ago and 17 per cent 
last year, according to the 
Osaka chamber of commerce 
and industry. And prices are 
still fialling - 

“For the next three years the 
Osaka market is going to be a 
tenants' market," says Mr Paul 
Boylan. a consultant to Sekisui 
House, Japan's largest house 
builder. “Rents are falling, 
land prices are falling and. the 
knock-on effect from the Ean- 
sai International Airport is not 
happening.” 

Large new developments like 
the Osaka Business Park, 
Rokko Island and Rinku Town 
were developed to meet rising 
demand for office space, but 


the collapse of the property 
market since the turn of the 
decade has left many of the, 
new high-rise buildings only' 
partially occupied. 

Ambitious plans for Rinku 
Town, being developed at a rite 
near the new international air- 
port, had to be cancelled, and 


Osaka has an abundance 
of empty offices, and 
streets lined with for 
rent 1 signs 


Osaka prefecture is instead 
making the space available 
temporarily for fairs and vari- 
ous events. 

Nor have the hanks based in 
the Eansai region been spared 
the massive bad debts that 
have weighed heavily on 
Japan’s financial system in the 
past few years. 

The region has had its share 
Of crantfalg stemming from the 
years of financial and specula- 


tive excess in the late 1980b - 
su ch as the disclosure th at the 
prestigious Industrial Bank cf 
Japan had made loans of up to 
Y240bn to an Osaka restaura- 
teur, who made speculative 
stock marked: purchases based 
on seances and has been 
charged with fraud and forgeay. 

Companies based in Eansai, 
from Matsushita, the world’s 
largest consumer electronics 

company, to Obayashi, the gen- 
eral contractor which owns 
Bracken House, are still suffer- 
ing from the debilitating 
effects of Japan's longest reces- 
sion since the war. 

Meanwhile, traditional 
industries, such as textiles, 
which used to support the 
region’s economy, have suf- 
fered not only from the down- 
turn in consumer spending but 

also from an inflint of cheaper 
Imports from other Asian 
countries. 

Nishljln, a town outside 
Kyoto where expensive, tradi- 
tional silk fcimmin are woven 
by hand, has seen the number 
of famines in the business ft»Ti 
from 270,000 to just 20,000. “At 
the present, Mshtitfin weaving 
is surviving as an Industry. 
But there is a question as to 
what wifi happen in five years' 
time,” lampnte Mr Y nahin Ka fr, 
suyama, a director of the Nlsh- 
Ijin weavers’ industry union. 

The slump In consumer 
spending, which has hit depart- 
ment stores sales particularly 
hard, has forced Selim, a pres- 
tigious retailer, to take the 
unprecedented step of dosing 
its store in Kobe. 

Nevertheless, hopes are ris- 
ing theft, with the worst of the 
recession, behind it, K«n«rf can 
take the lead in pulling the 
country out of recession. 

With the current coalition 
government facing an uncer- 
tain future, and. with many 
conventional business prac- 
tices being questioned, Tokyo 
companies wifi not be able to 
takp advantage erf th eir prox- 
imity to the central bwiia of 
power, reckons Mr Yn ahihim 
Otani, general manager of pub- 
lic relations at the Osaka 


CONSISTENCY. 



0 


NE FLAWLESS PEARL MAY BE A LUCKY FIND. 


U But putting together a whole string of them, side by- 
side, cakes time. Professional insight. And a singular 
quest for quality. 

At Sanwa Bank, we too aim to provide clients with consis- 
tently high-quality financial services. Not just in one area of 
finance or in isolated transactions. But in every transaction, 
and all the commercial and investment banking areas where 
we are active, in thirty countries worldwide. 

Today, with our local expertise and global capabilities, we 
excel in evolving fields like structured finance and leasing 
services. We innovate across the board to meet client needs, 
time after time. And so maintain our own position among 
the world’s cop banks, year after year. 


& Sanwa Bank 


Sanwa bankers are working for you everywhere. 


Kansai International Airport Opera on Sept. 4th Sanwa Bank Supports the Kansai International Airport Project, hudbrTtebmBuifc. uom 


imuponml in Jspai null member of SBV 


FINANCIAL TIMES THURSDAY SEPTEMBER 1 1994 




*• 




chamber erf commerce. 

In c ont r as t to -Tokyo’s cur- 
rent powerlessness, he says, 
"Eansai businesses have 
always relied on their own 
strength rather than on the 
antral government." 

Faced with uncertainty, Ean- 
sai is thus better placed to pull 
itself out of the long downward 
spiral of the past few years by 
sheer Ingenuity and drive. 

“The 21st century is the era of 
Eansai,” Mr Otani declares. 

Part of tf™ optimism in Van - 
sal can he attributed to the 
psychological impact of the 
many large-scale projects that 
are expected to significantly 
i m prove the area’s infrastruc- 
ture and increase Its cultural 
and academic appeal 

Apart from the international 
airport, which will bring more 
tourists and businessmen to 
the area, the new roads and 
railways, built to accommodate 
the increased traffic, the need 
for surrounding foriEttos, such 
as distribution warehouses and 
conference halls, and new ser- 
vices, are expected to raise eco- 
nomic a cti v ity Investment in 
surrounding facilities totals 
YB.OOOtm ($30bn) says Daiwa’s 
Mr Akitake. 

In addition, projects to build 
facilities such as the Kansai 
Science City, will bring 
research and cultural activities 
to the area. Science City, 
which spans Osaka, Kyoto and 
Nara, is the site of the first 
multimedia experiments being 
held under the an^rices of the 
ministry erf posts and telecom- 
munications. 

The Afca«hi Kafkyo Bridge, 
connecting A wap island with 
the mainland, will become the 
longest suspension bridge in 
the world. Wakayama, to the 
west of Osaka, will host an 
international resort exposition 
this year an a reclaimed island 
in file Sea of Japan. 

AH of this activity wifi help 
to spur economic growth in the 
Kansai region, by L3 per cent 
this year and 3.3 per emit in 
1995, Daiwa Research forecasts. 

Observers also believe that 
the push for economic deregu- 



. reS' 0 ” 


fV:-' 

if. :y 

i if-'- 

SK; 

,n; “ " ( 

£ 


; 


Sdance CHy Is Uw rite of muttfenwfla experiments, undar the auspices of the ndnlstiy of telecommunications 


lotion that is being seen in 
Tokyo is another reason why 
Eansai has a better chance of 
recovery than Tokyo. The 
region has always festered an 
entrepreneurial spirit that has 
In the past given rise to new 
businesses, such as instant 
noodles (which have became a 
staple throughout Japan), 
self-service sushi bars and 
karaoke. 


But for many years, Kansai 
has had to watch successful 
businesses move out to Tokyo 
in order to be. close to the 
sources of information and the 
seat of political and bureau- 
cratic power. 

As the bureaucracy is 
increasingly fenced to relax its 
grip on authority and qq infor- 
mation, more businesses will 
find it easier to grow in Ean- 


sai, and the region will benefit 
from its intrinsic resourceful- 
ness, Mr Akitake belie vas. 

"It would be dangerous to 
have everything concentrated 
in Tokyo,” he warns. With the 
hew airport, improved infra- 
structure and less red tape, 
TTanmii nm sow Offer &Q alter- 
natftre. "This is not just for the 
good of Kansai, but the good of 
Japan as a whole.” 






Tlw Aria and Pacific Trade Centra was opened, in Osaka, In Aprl 


Trade links with Asia are increasingly important 


In place of the west 


To declare that Eansai has 
important commercial ties 
with Aria - as Kansai officials 
and businessmen often do - is 
something of a truism; Japan’s 
whole economy Is dependent 
on Asia, and Kansai is no 
exception. 

Like . other Japanese 
companies, Kansas-based 
corporations such as 
Matsushita Electric and Sharp 
have invested and traded 
heavily In Aria. Like other 
regions of Japan, Kansai has 
been affected by the strength 
of the yen, and its industries 
are embariting an a new round 


of factory relocations from 
Japan to cheaper rites In 
SOUth-east Aria and nMna 

But Kansai boasts that its 
trade links with other Asian 
countries go back, to the 
eighth century, when Nara 
was a terminus of the silk 
road; and even to the fifth 
century, when Osaka Is said to 
have thrived as one of Japan’s 
first sea ports. 

Today Kansai collectively 
continues to emphasise the 
importance of Asia and Asia’s 
fast-growing economies. 
Businessman, disappointed by 
the performance of their 


investments in Europe and 
America, sometimes take it lor 
granted that the west is in 
decline and therefore rely on 
Aria more than ever. 

About 47 per cent of exports 
from v«H|aj| go to Aria - more 
than to North America and 
Europe combined- (Asia takes 
only 34 per cent of Japanese 
exports as a whole). Asia also 
provides the biggest share of 
Kansal’s Imports (43 per emit, 
compared with 32 per cent for 
the whole of Japan). 

Traditionally, most of these 


Continued on facing page 


The Definitive Reference Source 


The flixt full-colour A to Z reference aoona an zH upeeia of Japan 

1.400 kai&>s>HitlnritM<tea^owe»w<KK JAPAN; 

An UluttnUrd Kncyrlaptdia is imriTwHod in the depth. and 

■espa of the infixmattai it ptotUm. 


JAPAN; Am i 



retools tl» UK or £17.001 


tup+>4 onwdacem 

n into leant* ft toon 


OMBL EberpM /tax Jfeofc mo 
riifeC htehairiuitjMut- 


JAPAN 

An Illustrated Encyclopedia . 


KOOANSHA. EUROPE USL 
SC AM^di. Lmtju ITC2B «JPT*fc (OTtl USB PfecD07UI2M4 



Ove Amp & Partners is proud to be a member of 
the design team for the 
Kansai International Airport Terminal 


Structural Engineering • Building Services Engineering 
Fire Safety Design 


OmrAnp&PBmm On Amp APamen Japan Ltd 
13 Pitzroy Street 3F Swire He* oe 

Leaden WIP6BQ 14 kUmdio 

Unktd Kingdom CtijodaJtz Tokyo 102 Japaa 
WOm 630153! Td 03 32309180 

Cotoao: Ta* Hair Contact; John Bardntar 


ARUP 


L -- .' v- ‘ 


2 


i— " 
'r-.i _- -. 


2? v - 

-x 




compare 


treasingly t 









V ' 1 s;. 

U;... . 




it. y ■: .“■■■■ 


wsc- 

.; i: ‘ * 


'tr. * 






'-r. - 


,rw>. 


• iLl ’ ^ . ' > 


■V4r^ - to,. *IXU'4 ( • V a 









FINANCIAL TIMES 


THURSDAY SEPTEMBER I 1994 


‘7L . 


- -1^*- 1 » 
:.. • *!■ e.,* ■»•*■ 




- X 



( ICTg 






gfcj&eeissa 

SB® fc 


-'*■ |£- 

m--i 

‘ r ^ 


'iu 

••' " '..^V 


f * ;OC* 

vV GO i 




KANSAI III 


Politics: William Dawkins on an enduring consensus 

A regional lesson 
for national rulers 


Japan’s lurch over the past 
year into an era of unable 

coalition governments has 
raised ironic smiles among 
Kansai politicians. 

Mainstream political parties, 
with the expection of the 
eccentric communists, have 
been working together in 
Kansai in what might be 
described as loose coalitions 
for many years. They may 
have a lesson to teach their 
national government 
colleagues in Tokyo, who 
struggle to achieve political 
stability in their fourth 
government within the space 
of a year. 

In Osaka and Kyoto, the two 
most populous of the six 
prefectures that make up 
Kansai, local governors and 
mayors are chosen by 
agreement between the main 
parties, and can count on 
cross-party support. Japan's 
tradition of consensus remains 
strong in Kansai politics. Just 
as it is breaking down an the 
Tffltinnal Stage. 

“Politics here are entirely 
different from central politics. 
The Liberal Democratic party 
[LDP] is in a minority and 
other parties are very strong," 
says Mr Hajime Ishii. member 
of parliament for the Japan 
Renewal party (JRP) - a 
national reform-minded group 
formed in June last year - 
from Hyogo prefecture and 
former home affair s minist er. 

Mr Teiichi Aram aid, an 
independent in his eighth year 
as governor of Kyoto, says the 
national political turmoil bag 
had no impact on local politics. 
Be and his prefectural 
colleagues are mare interested 
in defending the interests of 
the community, than in 
waging backroom battles over 
political philosophy. 

The same habit of 
co-operation exists in Osaka. 
“We decide our own policies, 
and the governor co-ordinates 
if there is a discrepancy. We all 
support the governor," 
explains Mr Tokuo Nishikawa, 
secretary general of the 
left-wing Social Democratic 
Party (SDP) in Osaka. 
“Communications between 
parties here are very good, and 
there is not much room for 
disagreement on the main 
policies," says his opposite 
number at the Osaka branch of 
the conservative LDP. Mr 
Yoshio Matsnj. 


The balance of power in 
Osaka, the biggest prefecture, 
is more or less in line with the 
national balance, with one 
exception. Komeito, the 
Buddhist-linked 
clean-government patty, has a 
stronger than average showing 
there. It was founded in Osaka, 
and has strong support fr om 
lower middle cl aqs employees 
of the prefecture's legions ctf 
small subcontractors, says the 

In Osaka and Kyoto, 
governors and mayors 
are chosen by 
agreement between 
parties, and can count 
on cross-party support 

SOP’S Mr Nishikawa. Overall, 
the LDP has the strongest 
power base in Osaka, with 48 
seats on the 104-seat 
prefectural assembly, followed 
by the SDP with 23, Komeito 
with 18, the Japan Communist 
party with 11 , and three 
independents. 

Osaka politics may be 
different, but the need to 
maintain contacts in Tokyo is 
as crucial as ever. The region 
is dependent on central 
government in Tokyo for cash 
to fund its ambitious projects, 
such as a badly needed 
extension to Kansai airport - 
short of capacity before it even 
opens - and Kansai Science 
City. 

Traditionally, local 
politicians have relied on three 
clear lines of influence to 
defend their interests in 
central government; members 
of parliament; the LDP’s 
sectoral lobby groups, known 
as zdku; and direct approaches 
to the government ministries 
concerned with particular 
iqqnas. The weakening of the 
LDP and its formerly powerful 
zoku, due to its 11-month spell 
in opposition until returning to 
power at the end of June, 
means that local politicians 
will increasingly rely on direct 
lobbying to the government 
bureaucracy. 

"It is a very slow system. It 
took us 10 years of lobbying to 
complete one runway far the 
new airport, and now we need 
another one. Over the past 
year, we have had a very hard 
time trying to get the budget 
for this. First the governor had 
to approach the Hosokawa 


Small companies look 
increasingly to Asia 


i ; i 


Continued from facing page 

imports to Japan have been 
raw materials or agricultural 
nod seafood products - logs 
from Asia’s dwindling tropical 
forests can be seen floating In 
the big lumber pools at 
Osaka’s port - hot they now 
include electronic goods and 
vehicle components made by 
Japanese factories in south- 
east Asia. 

“We still serve as the gate- 
way for south-east Asian prod- 
ucts, and also we*ve made 
large-scale investments in 
practically all countries in 
Asia,” says Mr BCchio Sugi- 
rooto, managing director of 
the Osaka chamber of com- 
merce and industry. In the 
lobby of the chamber's build- 
ing, a digital sign keeps track 
of the rise of the yen against 
the dollar, an obsession for 
Japanese companies which are 
finding H harder and harder to 
compete in international mar- 
kets. . . 

“Lots of small companies in 
Osaka are now thinking of 
investing in Asia, including 

Kobe and Osaka handle 
some 40 per cent of 
Japan's growing trade with 
China, where there is a 
market of 1 .2bn people 

China and Vietnam," says Mr 
Karoo Ishii, director general 
uf the Japan External Trade 
Organisation's Osaka branch. 

The potential of Chinas 
domestic market of 1 . 2 bn peo- 
ple and the size of its labour 
force have attracted intense 
interest - and Investments - 
from local businesses; the 
ports of Kobe and Osaka han- 
dle some 40 per cent of Japan s 
growing trade with Ch,n ®* 
“One of our staff in Osaka who 
came from Beijing is now very 
busy giving lectures on 
China,” says Mr Ishii. 

Kansai 's reputation as a cen- 
tre of commerce to 
bv the large number or for- 
eigners living in the rep®?* 
They include half of Japan 
700.000 Koreans 
links to both 

Korea). Indians based in Kobe 
(who trade with 
Indian subcontinent), and Chi 
sese residents- 



Mr Tetsuro Kawakami: TWs area has 
strong tradffional ties with east Asia' 

Both the Osaka Foreign 
Trade Association and the 
Kansai Economic Federation 
(Kankeiren) are seeking to 
strengthen their links with the 
overseas Chinese, who 
dominate commerce and 
distribution throughout much 
of Asia. 

Japanese government organ- 
isations, along with local 
authorities and businesses In 
Kansai, have also promoted 
several big projects to Improve 
Kansas's standing as an Asian 
and international commercial 

centre. 

These include the new air- 
port. whose 24-hour operation 
will be particularly useful for 
regional air freight services 
used for everything from sea- 
food and cut Dowers to micro- 
chips, and the Asia and Pacific 
Trade Centre (ATQ opened In 
Osaka in April- 

One of the ATC’s principal 
aim s is to promote imports 
from Asia, to deflect criticism 
of Japan’s trade surpluses and 
the difficulty of selling goods 
in the Japanese market. 

"We’d like to energise 
transport links between Japan 
and the rest of the world, and 
traditionally this area has 
strong ties with east Asia," 
says Mr Tetsuro Kawakami, 
chairman of Kankeiren and of 
Sumitomo Eteetric Industries. 

In the future increasingly 
high-level technology win be 
transferred from Japan to 
other countries in Ada, he 
believes. “We cant survive 
without our east Asian 
partners." says Mr Kawakami 
M We have to divide our work 

with tlK™- 

Victor Mallet 


cabinet, then a few months 
later there was the Hata 
cabinet, and now we are back 
in power," says the LDP’s Mr 

Matsui. 

The LDP, SDP. JRP and 
Komeito see eye to eye on the 
most important regional 
policies, to continue promoting 
Kansai' s big public works 
projects, to lobby for greater 
budget independence from 
central government, and to 
rhannpi more support 

to the small businesses that 
make up the backbone of the 
regional economy. 

In Kyoto, the main item on 
governor Aramaic's big-ticket 
shopping list is a new 
government guesthouse in the 
grounds of the city's former 

imperial palace He thinks it 15 

high time the Japanese 
government lodged visiting 
dignitaries in a traditional 
Japanese-style house, rather 
than the present miniature of 
Versailles hi central Tokyo. If 
Mr Aramakl gets his wish, 
which hangs on a central 
government decision due in 
the next few months, he hopes 
to persuade the government to 
hold the Group of Seven 





S " * 


Mr TsKchl Aramakl is in Ms eighth y, 

annual summit in Kyoto, when 
It is Japan's next turn to host 
the G7 in 2000. 

One of the most pressing 
concerns for the JRF’s Mr ishii 
Is to give greater control over 
fiscal policy to the prefectures. 
“At the moment, two thirds of 
the region’s taxes go to central 
government, yet two thirds of 
regional spending is maifa by 
local government. That means 



ar as governor of Kyoto 

one third of tax revenues have 
to be transferred from central 
to local government We need 
direct local taxation.” he says. 

That, argues Mr Ishii, will be 
the key to transferring more 
power from central 
government to the regions. 
This has been a subject of 
much political debate and little 
concrete progress for the past 
decade, briefly relaunched by 



Mr Morihiro Hosokawa's 
reform-minded government 
last year. 

“Transferring more power to 
local government is a very 
slow business, because we are 
still rooted in the strong 
central government traditions 
of the Meiji era," says Mr Ishii, 
referring to the birth of 
modem Japan in the late 19th 
century. Mr Nishikawa. of 


Osaka's socialist group, 
believes central government is 
becoming more sensitive to 
demands for decentralisation. 

At the LDP, Mr Matsui says 
his most important policy issue 
is to expand the volume of 
low-interest loans for small 
businesses, to help them 
survive the impact of the yen's 
rise. Here he is hoping to 
expand support for local trust 


National railway 


banks and farmers' 
co-operatives, which, unlike 
other banks, are controlled by 
the prefecture rather than the 
ministry of finance in Tokyo. 

Mr Matsui argues: “The 
yen's rise companies all the 
way down the fine, but the 
smallest ones at the end of the 
chain of subcontracted are the 
most vulnerable. We must do 
what we can.” 
























And ^ain on (he nth. ilu* 6th and the Till... 

In hu t. wv ilv (iirrcl from Europe to Japan's 
second largest cirv dailv. Four from London Heathrow 
plus a hit diet three iron! Paris. This makes us the 
most frequent carrier to japan's newest uucnuu tonal 



Japan Airlines 

A WORLD OF COMFORT 


hub airport. Which ri excellent news for JAL Mileage 
Bank Europe members, who. can collect a bonus of 
up to Id.OfO mileage credits for a round trip! to Osaka. 

For more information or to make a reservation., 
call vour local JAL office, 


London ()7 i-iws ]Ouu Frankfurt ittnOi l.'lliOO Paris f! •-t:-", 
Geneva awm 7:;i-7lMi Madrid (1) 7-r_’-nuun Moscow UL’l- 


Copenhagen 73 ■ I 33 n 

s <>r Vdl-U-dS Vienna 


Amsterdam iO'JUj U7f> taiuO 
: 2-7522 Brussels ; U2; W.I <; 


Zurich fJi: 'J 1 1 17 
SV.w 1 Cairo 7 7 17' 














IV 


-&& 


umM 


W iJ m 




f||g 


raj’SsS 

*•■%?$§* 


\ r ^Sp!r- ^7 Egt* 

fv :! i ‘^‘^SaSpj^^ 

3g£ : .* : "s 1 "* . -IV A' ^.'-LVisAi 




fe£3Sfi 


. a v - : ; ' • ■ 

•4 ■£ ■.'."■ -■'■*■ !-’-£.>r ;.* '. ■; ■£ 4 st f-*la 

.. s ■ ■ • ■ ■ .-c ; -w. . ■*. !.:. : *J» :> :i 




jv -; v . . *:><■*£... v jjuif 

■ •ht'i ■ ' '• ,•» * ■%’j* A ^ " '*• ;«*■<' 

’?*■: f v 






According to the ancient Chinese philosophy of yin and 
yang, the universe is composed of opposing but inter- 
dependent forces. ■ Interestingly, this philosophy resembles 
the concept of homeostasis, the natural balance that occurs 
within living organisms, including die harmony between 
antagonists and agonists that regulate vital functions. 
Thus, an important factor in the search for new medicines is 
the development of compounds that work together with the 
body's awn restorative and regenerative abilities. hIo lead 
healthy lives, we must seek balance with nature, with 
society, and within ourselves. Through pharmaceutical 
research, we are striving to help people attain this balance. 


t:\kida 


Takeda Chemical Industries, Ltd- 


Head Office: 1-1, Dothomochi 4-chome, Chuo-ku, Osaka 541, Japan 
Tokyo Head Office: 12-10, Nihonbaihi 2-chome, Chuo-ku, Tokyo 103, Japan 


The peace and quiet is 
almost legendary. 


Indeed, the Hotel Okura is legendary for going to 
extraordinary lengths to create an atmosphere in which you can always feel at ease . 

No matter which of our four grand hotels along Japan's famed Bullet Train line you choose, 
our staff upholds the highest standards of accommodation, cuisine and luxury service throughout Japan. 

Experience the Okura's legendary hospitality for yourself, and you’ll discover 
just how quietly accommodating an extraordinary hotel can be. 


W 





Hok! Okura - Quia luxury ra the hem of Tokyo 


Hold Okura. Tokyo 



Hold Okura Kobe -Jus 15 minutes 
from Kobe City Air Terminal 



Okura A a City Hotel Hamamatsu 
(opens October 6. I9W 


q>£ov 4?J2 OAiota 


2-10-4 Toranomon. Miruio-ku. Tokyo (OS. Japan 
Td : (03)3582-0! 1 1; Fax : (03)3382-3707 



Hoad Kayo Kaiknn. Tokyo 
ttastnea convenience for oavdera 



JBXNANCXAJL TIMES THURSDAY. SEPTEMBER 1-1994 


KANSA1 IV 


Michiyo Nakamoto assesses the impact of the new airport 




Progress without vision 




ra 9 e 


tion 


“On a dear day you should be 
able to see Awaji Mand across 
the water," the driver says, as 
he steers his taxi down the eye- 
catching, double-layered bridge 
that spans the stretch of sea 
between the mainland and 

Kangai Tntamational Airport 

(HA). 

"Unfortunately, there’s usu- 
ally a mist over the water, and 
it’s hardly ever possible to see 
the Island," be apologeti- 
cally. 

Kansal’s striking new inter- 
national airport may have 
many ftfrp in its favour, but 
clarity cf visum is not mu* of 
its strengths, whether in fka 
surrounding atmosphere or in 
its ambitious plans to became 
Japan's preferred hnh for inter- 
national travel. 

Seven years after construc- 
tion work started, the airport, 

h nflt rm T wlatnwfl land ahra rt 4 

kilometres off the shore of 
Osaka, opens 18 months late 

thin Sunday With* less than half 

the expected number off flights, 
a s inking foundation and 
uncertainty surrounding 
expansion plans that are cru- 
cial if the airport is to become 
the gateway to the world that 
it hopes to be. 

KIA’s stumbling start throws 
mtn relief the lofty amhitimu? 
that inspired Its private and 
public owners to embark on - 
the costly and daunting *»«fr of 
building the world's first off- 
shore airport 

The development that has 
been publicised as Japan’s first 
, 24-hour airport was concaved 
as the much-needed public 
project to transform its host 
city, Osaka, from an urban 
sprawl m the eastern edge of 
Asia to a shirring metropolis. 
The opening of Kansai’s doors 
to greater jntomaHmu>i traffic, 
it was believed, would place 
the region firmly an the rnnp af 
every globe-trotting policy- 
maker and businessman, and 
do wonders to the regional 
economy. 

It may still happen. But even 
before its opening, the hnag p of 
Kansai has been hurt, rather 
than helped, by the airport and 
its myriad woes which have 
overshadowed the positive 
aspects of the airport, such as 
thn striking terminal budding 
designed by Italian architect 
Renzo Plano, or the conve- 



id* 




Fee 


Th» airport, butt on rsdatnuKf tend 4 fcMomafra a off the shore at Osaka, opens IS months late this Suschy 


nience it offers by servicing 
both domestic and interna- 
tional nights. 

To many people, KIA is 
known as the sinking airport 
The first ever to be buQt on a 
man-made island, it ran up 
costs for exceeding initial esti- 
mates, largely because toe land 
an which it is built sank more 
than was expected and had to 
be repeatedly fortified. 

When experts gave opinions 
as to how much the island 
would sink, the airport author- 


leaving the airport saddled 
with over Yl.OOObn in debt. 
Interest payments alone 
amount to YlOQm a day, and 
the airport is expected to suffer 
a loss <rf Y55bn m its first year. 

“We have to explore whether 
we will have to redraw our 
long-term plan , or whether 
there is a way to avoid doing 
so," concedes Mr Ogawa. 

KIAC had planned to make a 
profit in five years, and to com- 
plete loan repayments and 
start paying dividends in 28 


The Image of Kansai has been hurt, rattier than 
helped, by the airport and the myriad woes that have 
overshadowed the project's positive aspects ... 


ides, with characteristic Kan- 
sai op timi sm, took toe lower 
end of their estimates. 

"While construction work 
was going an, it emerged that 
toe worst scenario was in fact 
the most accurate,” mrpiaftiR 
Mr Zepjiro Ogawa, managing 
director and vicepresident of 

Itanaai International Airport 
Company (KIAC), the airport's 
operators. The island will sink 
about one more metre, but this 

is in Iran w ith Atpprbitwns , he 

says reassuringly. 

The result of toe initial mis- 
calculation, however, is that 
costs have surged . from 
YUWObn (810m) to Tl^OObn, 


years. But now the company 
expects to have to delay repays 
mgnt of loans. - 

in order to ir>(niwia> the 
damage, KIAC was initially 
forced to set landing-foes at a 
rate surpassing those at Nar- 
ita, Tokyo’s international air- 
port which until this month 
enjoyed the notoriety of being 
the world's most expensive 

nnp 

The move backfired, how- 
ever, and KIAC found Itself 
unable to attract as many 
flights as it had been hoped, 
because. increasingly costcon- 
sdous airiTTipg halkwri at hav- 
ing to pay Y995JXX) each, tone 


they landed. 

Airport officials were locked 
in negotiations nwHi the last 
minute with toe International 
Air Transport Association 
data), winch found KIAC’s foes 
unacceptable. 

"We are a private company, 
and we must collect fees that 
cover our costa, otherwise we 
cannot exist," Mr Ogawa pro- 
tests. KIA’s lauding fees are 
only 10 per cent higher than 
those at Narita, an amount 
that airlines can easily recoup 
by sighing up a few extra cus- 
tomers, he says. 

In the end, just weeks before 
the airport was scheduled to 
open,. the EZAC agreed to lower 
its fees to match those charged 
at Narita. But the move hardly 
bodes well for KIA’s efforts to 
earn as modi as it can in fees 
towards the construction of 
two more r u n wa y s. 

Without that increased 
capacity, KIA will not he able 
to realise its true potentialas 
an Asian hub. Having got over 
one hurdle, in setting imtiiii 
landing-fees, the airport opera- 
tors now face another, even 
more contentions battle over 
how much of the estimated 
expansion cost of .about 
YlvOOtbn is to be shouldered by 
Hw national and local gUVUSil 


sr-T". 

-C-T. 

3!i-. - • ' 


Continued an fecingpage 


t-v - - 


Speed. Accuracy. Coordination. 


Working Together: Daiwa Bank 


ff you want more than the lackluster approach to service 
followed by mast large banks, there b a dynamic alternative: 
Daiwa Bank. 

One of Japan's largest financial institutions, we have a long 
history of engagement in bath trust and commercial banting. 
Daiwa Bank's formidable range of trust management services 
Indudes pension, money and land trusts as well as investment 
advisory services. 


- WO are a leader in corporate pension fond management 
among trust banks in Japan— the fastest-growing sector of 
the natkm's trust banking industry. 

• Our capabaities extend to real estate, merchant banking 
and securities-rdated services. 

•And we're active worldwide, with operations in 19 countries. 

So. for a swift; accurate and coordinated response to your 
financial requirements, trust Daiwa Bank. We've got our 
act together. 


Th« Daiwa Bank, Limited 


Great Harmony in Dynanrism 

V/ Daiwa Bank 


HrnmdOmctK . 

2-1. Bingomachi 2-chome. Chuo-ku, Osaka 541, Japan 
Tel: (06) 271-1221 


Tokyo OHfcmz 

H Otemachi 2-chome. Chiyoda-ku. Tokyo 100, • Japan 
Tel: (03) 3231-1231 


Ov ers t mr Mfw fc 

London Frankfurt. Paris. Zurich. Madrid, New York, Los Angeles. Chicago. Boston. Philadelphia, Pittsbuigh. Baltimore. Atlanta, 
T&mpa, Miami. Minneapolis, St Louis, Dates, San Francisco, Houston, Grand Cayman, Toronto, Mexico. Sio Paulo. Hong Kong, 
Singapore. Jakarta. Surabaya. Bandung. Bekasi, Seoul Kuala Lumpur. Shanghai. Be^ng. Guangzhou, Bangkok, Ho Chi Minh Olv 
Sydney 


KANSAI PAINT- 
COVERING THE GLOBE 


Wherever you happen 
to be around the world, 
chances are that Kansai 
Paint is there too, provid- 
ing an outstanding array 
of paints and coatings 
for diverse applications. 
Kansai Paint, one of the 
world's top toft paint 
manufacturers, maintains 
sales and production 
bases on three continents 
and is devoting its ad- 


RELAX 

WE'VE 
GOT IT 
COVERED 


OVERSEAS OFFICES 
AND FACTORIES 


Singapore 

Bangkok 


Troy 

London 


Kaohsiung Jakarta 


Bombay Shenyang 


Hong Kong Tianjin 
New York Shanghai 


KANSAI RWNTCQJJDl 

3-6, Fushimi-madii 4-chome, 
Chuo-ku, Osaka, Japan 


Telephone: 81-6-203-5531 
Telefax: 81-6-203-5018 


capabilities to the devel- 
opment of high-perfor- 
mance, environmentally 
sound products. So, 
wherever you may be 
and whatever your needs, 
relax — Kansai Paint's got 
it covered. 



ALESCO 









KANSAI V 


KIA may 

encourage 
relocation 

Cua United from facing png» 

mente. the local business com 
munity and the airport itselt 
Nevertheless, KIAC and the 
airport's loyal supporters in 
Kansai remain optimistic 
about its long-term prospects 
Mr Takaharu AMtake, gen- 
eral manager of the Kansai 
economy research department, 
at Daiwa Research Institute, is 
caie-who believes strongly that 

the international airport will 
help revitalise the regional 
economy. Osaka international 
airport, which had served the 
region's international needs, is 
already up to capacity and has 
no room for expansion. The 
opening of H3A will encourage 
new companies to locate in the 
Kansai region, and make it 
easier to hold international 
conferences here, Mr AM take 
points out "Osaka then offers 
an alternative to Tokyo." 

The expected increase in 
carp) traffic will also help the 
regional economy. As much as 
85 per cent of air cargo in 
■%. "v... Japan is concentrated at Nar- 
^ tta, the world's largest handler 
of air cargo. Since a large pro- 
' - portion of this is delivered to 

- the Kansai area, KIA, which 

: Tv' has the capacity to hnnrfio L4m 
tonnes of cargo a year, is 
expected to take much of the 
: f burden off Narita. 

The new airport is also 
- v expected to stimulate more 

business with Asia. KIA offers 
direct flights to Asian coun- 
. . tries not represented at Narita, 

jnrJnding Nepal, Vietnam and 
fyfongnHa 

li Assuming that KIA gignu up 
397 international flights and 
441 domestic flights a week, 
the research institute expects 
the extra economic activity 
generated by the airport to add 
. 1.56 per cent to the gross 
regional product 
There is a shortage of airport 
- facilities in Japan, Mr Ogawa 
points out. “Narita is fufi, so 
the fact is that Japan needs 
another international airport** 
Compared with Narita, 
which fa far from Tokyo's 
~ domestic airport. KIA, which 

serves both international and 
' r . domestic flights, offers the con- 
venience of easy transit to and 
- from principal cities through- 

out Japan and the world. 




Feeling the price-squeeze 


The hidden strength of 
Osaka’s economy, its army of 
subcontractors, is coming 
under unprecedented pressure. 

The presence of some of 
Japan's largest manufacturing 
companies in the prefecture, 
like Matsushita and Sharp, has 
supported an enormous 
network of suppliers, so that 
small businesses make up a 
larger than average share of 
Osaka's economy. 

More than 90 per cent of the 
local workforce Is employed in 
companies of less than 300 
staff. They produce 65.5 per 
cent of the region's industrial 
turnover, well above the 54.2 
pea* cent for small businesses 
in the Tokyo region, according 
to the Osaka prefectnral 
institute for advanced 
industry development. 

As in the rest of Japan, the 
leading manufacturers have 
squeezed their suppliers’ 
prices hard during the 
recession, as part of their 
cost-cutting strategies. This 
has been intense enough to 
drive some of the weaker 
suppliers oat of business. At 
the start of Japan’s recession 
in 1991, bankruptcies in Osaka 
grew faster than the number 
of new businesses for the first 
time. The sad trend has 
continued, says Mr HoriynM 
Tsuda, director of industrial 
research at Osaka prefecture. 

A tour of local 


subcontractors suggests that 
prices are still under pressure, 
despite signs of an economic 
upturn, as the latest rise in 
tiie yen's- value intensifies the 
pressure on export-dependent 
businesses to trim their costs. 
Suppliers of the Mg electronics 
companies are an example, 
says Mr Tsuda. 

The big manufacturers are 
understandably reluctant to 
push too many of their 
suppliers too hard, partly 


The rising yen has 
intensified the pressure on 
export-dependent 
businesses to trim costs 


because of traditional 
loyalties, hot also because 
Osaka, like the rest of Japan, 
faces a labour shortage over 
the long term. 

A classic example of 
pressures on Osaka's 
subcontractors Is Taldzawa 
Precision Gear, a tiny 
producer of machine gears, 
which has determinedly kept 
on its 14 staff throughout the 
recession. 

Mr KJyosbi Takizawa, its 
president, whose father 
founded the business in 1950, 
devotes 40 per cent of annual 
sales to his top three 
customers. The exposure fa big 
enough to make It impossible 


far the company to resist their 
demands for price cuts of 
between 5 per cent and 15 per 
cent every year for the past 
four years. 

Sales have shrunk from 
Y300m to T200m over the 
same period, perilously dose 
to Takizawa' s Y180m 
break-even point Tmrtpad of 
sacking his tiny workforce, Mr 
Takizawa has increased 
spending on training, 
borrowed Y50m to re-equip 
with Swiss machine tools and 
carried out an engineering 
cost analysis. He took on two 
new employees last April, 
because be says the business 
will lose its edge if he does not 
rejuvenate the workforce. 

Mr Takizawa’ s strategy of 
investing through a recession 
was typical of Japanese 
industry In the 1980s, but has 
been widely abandoned by 
most of its largest customers 
in the recent downturn. He 
Justifies sticking to the old 
investror-die approach on the 
grounds that Takizawa has 
few foreign competitors, 
operating with the advantage 
of cheaper local currencies. 
This allows him to market 
more on quality than on price. 
But Mr Takizawa admits that 
“there is nothing we can do" If 
the Japanese market continues 
to shrink. 

William Dawkins 


Pharmaceuticals in crisis 

Consolidation is 
the likely cure 


Along the narrow bicycle-lined 
street of Dosho-machL in the 
Chuo-ku district of Osaka, are 
located some of Japan's biggest 
drugs companies. By western 
standards, the headquarters are 
modest, lacking in ostentation. 
That fa partly Japanese corpo- 
rate style, but more signifi- 
cantly it reflects the failure of 
these companies, and their 
Tokyo counterparts, to compete 
on a global basis. 

Japanese drugs groups' sales 
growth fa stowing; pre-tax prof- 
its for many companies are 
forecast to decline; and then- 
strength by comparison with 
their western counterparts con- 
tinues to deteriorate. 

The industry needs to 
restructure. Companies do not 
have sufficient sales to finance 
the R&D essential to ensure 
long-term survival 

When the industry does even- 
tually rationalise, the process 
will probably involve a consoli- 
dation of drugs companies into 
larger groups, with those in 
Tokyo merging with their local 
counterparts, and those Osaka- 
based businesses in Kansai 
Uniting up with their neigh- 
bours. 

Those located in Osaka 
include Takeda, SMnnnfl i and 
Fqjisawa. These are among the 
largest drugs groups in Japan. 
Indeed, Takeda fa Japan’s larg- 
est p harma ceu ticals manufac- 
turer. Yet in world terms, the 
Osaka-based companies - as 
well as the Tokyo-based groups 
- are phar maceu tical pygmies. 
Only Takeda, fa rated In the 
world top 20 drugs groups by 
sales, and only four Japanese 
pharmaceuticals companies are 
in the top 30. 

The reason fa their failure to 
internationalise. In spite of 
some small-scale and mostly 
disastrous overseas acquisi- 
tions, and occasional invest- 
ment in US and European 
development activities, the Jap- 
anese remain dependent on 
their domestic market. Only 
four groups generate more 10 
per cent of their sales overseas. 

Dependency on domestic 
sales has been all the more 
debilitating because of the dire 
state of the Japanese market 
The government, cash-strapped 
by falling tax receipts during 


the recession and appalled by 
demographic trends that indi- 
cate nearly a quarter of the 
population will be over 65 by 
the year 2025, has attempted to 
cut health-spending by attack- 
ing the drugs biH These efforts 
have included demand-side con- 
trols, as well as price cuts. 

The combined consequences 
of the groups' lack of scale and 
the biennial price cuts are 
immense. It means the Japa- 
nese spend l ess than their west- 
ern counterparts on R&D, and 
what they do spend fa often 
misdirected. Admittedly, the 
industry spends a respectable 
proportion of sales on R&D; but 
because the groups' sales base 
fa so small, the actual amounts 
available remain pitiful com- 
pared with western organisa- 
tions. 

These meagre amounts might 
possibly be enough to assure 
survival, if they were spent 
appropriately. But much R&D 
investment is misdirected. 
Kunio Takeda, president of 
Takeda Chemical, explains that 
in order to counter the price 
cuts: “Manufacturers resorted 
to launching modified [non-in- 
novative] compounds to con- 
serve development costs and 
time. Such policies are likely to 
damag n the industry.’’ 

This led to a massive rise in 
the number of new chemical 
entities developed in Japan in 
recent years. The increase was 
mistaken by some observers as 
an explosion in innovative 
research. Between 1975 and 
1989, Japanese companies 
launched 212 new c hemi cal 
entities. Few of these were 
innovative enough to be used 
overseas. 

Given the Osaka-based 
groups' proximity to each 
other, consolidation would, hi 
theory, not be too arduous. 
Mergers tend to occur in Japan 
only when companies are in cri- 
sis. Admittedly, no Japanese 
drugs group ts losing money, 
but the Crisis awaiting them fa 
no less real. Drugs companies’ 
directors must swallow their 
pride, consolidate their indus- 
try. refocus R&D, and interna- 
tionalise. The alternative is per- 
manent marginalisation. 

Paul Abrahams 


Conserving a culture 


No business like 
funny business 


Few Japanese people would 
consider a sense of humour to 
be a national characteristic. But 
in Kansai, cracking jokes fa a 
way of life. 

“When they are late for an 
appointment, Osaka folk will 
often greet their companion 
with a joke instead of apologis- 
ing for their tardiness," 
observes Mr Kenji Miyashita. 
editor of the Kansai edition of 
PIA, a popular weekly magazine 
on dty trends and events. 

This instinctive humour has 
given rise to a strain of comedy 
that fa distinctly Kansai, and 
which fa exemplified in Yoshi- 
moto Kogyo. one of the most 
successful entertainment com- 
panies in Japan. Amid one of 
the country’s gloomiest post- 
war periods, Yoshimoto has 
been doing a roaring trade sell- 
ing Kansai laughter. The com- 
pany owns three theatres in 
Osaka, and earlier this year 
opened anoLher in the classy 
Ginza district of Tokyo. 

Yoshimoto’s influence and 
the appeal of Kansai humour 
have been such that, to many 
Japanese people, comedy fails 
unless it fa performed in the 
Kansai dialect. 

“It fa not surprising that 
Yoshimoto has been such a suc- 
cess,” says Mr Tatsuya Tera- 
sawa, a civil servant living in 
Tokyo, who comes from Osaka. 
“Everyone in Osaka fa like a 
Yoshimoto comedian. It fa no 
wonder that the better among 
them should be considered espe- 
cially good anywhere else.” 

The cult, according to those 
who have lived there, begins 
early in life for Kansai folk. 
Unlike Tokyo, where schoolboys 
aspire to achieve high marks or 
win sports medals, popularity in 
the Osaka classroom depends 
less on intelligence or athleti- 
cism than on how fanny you 
are. 

The propensity of Kansai peo- 
ple to look for the funny side of 
things stems from a merchant 
culture which fostered the 
knack of. spotting the 
unadorned truth beneath the 
respectable show that most peo- 
ple, especially Tokyoites, tend 
to put on. 

“Kansai humour stems from 
the gap between tatemae. or 
human behaviour that follows 


the social rules, and home, or 
their true thoughts and reel- 
ings," explains Mr Masashi Noy- 
ama, manager or corporate 
information at Yoshimoto 
Kogyo. 

There is also a happy-go-lucky 
attitude among Osaka people 
that contrasts sharply with the 
seriousness with which Japa- 
nese society takes most things 
in life, and adds to Kansai 
humour. 

For example, if a cheque 
bounces, the Osaka business- 
man migh t call his lawyer and 
say, “something terrible has 
happened," as if it had hap- 
pened to someone else, points 
out Mr Noy ama. The contrast 
between the seriousness of the 
event and the easy-going atti- 
tude fa what makes the situa- 
tion funny, he explains. 

Yet, while Kansai humour fa 
today widely appreciated 
throughout Japan, Mr Noyama 
and others worry that the dis- 
tinctiveness of the region’s cul- 
ture fa being lost behind the 
uniformity of an increasingly 
influential mass media. 

Like many other things which 
originated in the Kansai region, 
loral musicians, designers and 
performers tend to move to 
Tokyo once they become suc- 
cessful. observes Mr Miyashita, 
at PIA. There used to be an 
Osaka blues and soul culture in 
the 1970s, but that has more or 
less disappeared; while Kansai 
theatre performers, including 
comedians, move to Tokyo in 
order to go into television. 

Concern that Kansai fa being 
drained of talent has prompted 
the Osaka city government to 
encourage theatre companies to 
use public facilities for perfor- 
mances. 

The Osaka chamber of com- 
merce alms to encourage the 
study of Osaka as a city by pro- 
moting plays that use it as a 
setting, gift ideas that improve 
the city's image, and music 
compact discs by, for example, 
the Osaka Philharmonic 
Orchestra. 

Others, such as Mr Noyama, 
hope that, with the spread of 
the information superhighway, 
talented performers will no Ion: 
ger have to move to Tokyo. 

Michiyo Nakamoto 



i;wV» 



M 


- 


The new limited express, Haruka 
JR West’s new limited express, Haruka, will 
link Kansai international Airport with the rest 
of JR West's extensive railway network. 


cR 

JR WEST 


WEST JAPAN RAILWAY COMPANY 

HEAD OFFICE: 4-24, SWbala 2-chome, 

Kita-ku, Osaka 530, Japan 
JR GROUP OVERSEAS OFFICES: 

(France) 24-26. rue de la Pfipiru&re, F-75008 Peris 
(U.S A.) One Rockefeller Rare. New York, NY 10020 
Number o» Employees: 47.579 
Dally Average Number of Passengers Carried: 4.945.000 
Route Length. 5.070.2 km 


Reaching Out to 
the Heart of Kansai 
and to the World 

With the opening of Kansai International Airport, the region’s first 24-hour air terminal, JR 
West will whisk international travelers in comfort to three of the Kansai region's cultural, busi- 
ness, and transportation hubs — Osaka, Kyoto, and Kobe. It’s also an easy hop with JR West to 
Shin-Osaka Station, where the high-speed Sanyo Shinkansen will carry you west to Okayama, 
Hiroshima, and Hakata, in northern Kyushu. Or, you can get straight onto a bullet train there 
to Tokyo. But if you're not in such a hurry, why not explore the region further by taking advan- 
tage of JR West’s extensive nerwork of lines throughout wesrem Japan? 

Since its foundation as part of the privatization of Japanese National Railways in 1987, JR 
West has grown steadily in tandem with the Kansai region. The Company recorded consolidated 
operating revenues of Yl.i Trillion in the fiscal year ended March 31, 1994, and carries 4.9 mil- 
lion passengers a day. In a move that will further enhance its convenient and reliable services 
and strengthen its outstanding reputation, JR West plans to reinforce its operating structure, in 
fine with the Company’s unwavering commitment to always put the customer first. 


This coupon entitles you to a free copy of 
JR West’s annual report. 

Check the appropriate box and send this coupon to the following address: 

Mr. Takao Fukuyama 

West Japan Railway Company 

Deputy General Manager, Finance Dept. 

4-24, Shibata 2-chome, Kita-ku, Osaka 530, Japan 

Occupation; 

□ Fund manager 

□ Securities analyst 

□ Corporate financial adviser 

□ Journalist 

□ Academic / researcher 

□ Consultant 

□ Other (please specify) 

Sender 

Please attach your name card or type sender information- 
name (Mr. / Mrs, / Miss), job title, company, address, country 



VI 


-jrtf** 


FINANCIAL TIMES THURSDAY SEPTEMBER l 1994 


Sk in'** 


KANSAS VI 


K yoto, Japan’s histori- 
cal and cultural capi- 
tal, began the year 
of celebrations com- 
memorating the founding of 
the city 1,200 years ago. with 
fireworks and high-tech laser- 
beam shows. 

But the birthday party has 
yet to pick up, because the 
occasion fells at a time when 
the dty is still suffering: the 
effects of the burst of the asset 
“bubble” of the late 1980s and 
the economic downturn that 
has followed. 

The dramatic rise in prop- 
erty prices and the subsequent 
fell has hit the city’s develop- 
ment activity. During the late 
1980s, the increase In develop- 
ment in a city surrounded on 
three sides by mountains, so 
that available land is limited, 
sent real estate prices surging. 

Land and condominium 
prices tripled between 1987 and 
the peak in 1991, far exceeding 
the increases in larger cities 
such as Tokyo and Osaka. But 
as Interest rates have risen and 
speculative activity has dimin- 
ished, prices have declined 
more sharply than in other 
large cities, falling by half in 
the past two years. 

The strong yen has also hurt 
Kyoto’s export-oriented compa- 
nies. Earnings have plunged at 
manufacturers such as Nin- 
tendo, the video-game maker, 
and at high-technology compa- 
nies Kyocera and Shimadzu. 

The economic slump has 
depressed anniversary festivi- 
ties, as organisers have foiled 
to collect the full YSObn 
($300m) needed for the planned 


Kyoto is 1,200 years old, yet celebrations are muted 


Developers at bay 


events from local government 

anil flnmpanifls. 

Yet the economic downturn 
and the fell in development 
projects has come as a relief to 
many conservationists. They 
Claim that o noiig h damag p has 
been done to the dty, and that 
further development would 
only harm Kyoto. The city of 
temples otih gardens remains 
the spiritual home for many 
Japanese, although traditional 
wooden in centre 

have been replaced by invest- 
ment houses and offices, and 
temples and shrines share the 
skyline with condominiums 
and department stores. 

“The Japanese are trying to 
ruin even what the Americans 
[in the war] chose to preserve.” 
says Mr Chfkou Kiyotaki, high 
priest of Karyuji Temple, the 
city’s oldest 

Many Buddhist temples have 
been hardened by their experi- 
ence during the late 1980s, and 
are relieved at the current eco- 
nomic downturn. In 1990, 
Kiyomlzu Temple, the most 
visited in Kyoto at the foot of 
the eastern hills, was forced to 
buy adjacent land to fend off 
developers trying to construct 
a condominium. 

Along with the Buddhist 
community, conservationist 
citizens groups have tried to 
stop developments. Mr Akira 



Kfyomizu Temple bought land, to fend off developer* 


Nakgjima, leader of a citizens 
group against the development 
of Kyoto, argues that the “hol- 
lowing out” of the city stems 
from the rise in property 
prices, due to the bubble and 
not the lack of development. 

On the other hand, many of 
Kyoto's leading businessmen 
believe a remedy for the falter- 
ing economy Is a loosening of 
development restrictions. They 
Hahn that excessive conserva- 
tion, aimed at preserving the 
city’s skyline and its image as 
Japan’s ancient capital, is 
restraining Kyoto’s vitality. 

Some of the businessmen 


who favour further develop- 
ment go so far as to n«im that 
the city - which was spared 
US bombing after American 
academics had persuaded the 
airforce not to attack Kyoto 
and destroy its temples and 
shrines dozing the war - 
would have prospered had it 
suffered as Tokyo did, and 
therefore been freed from con- 
struction restrictions. 

“Kyoto is a dead dty." says 
Mr Katsuji Tsunoda, at the 
Real Estate Research Institute, 
a private agency that monitors 
property markets. 

Members of the development 


camp blame a recent popular 
tion drain on building restric- 
tions that have obliged resi- 
dents to sell their cramped 
. ho m e* move outside the 
dty- Universities have also left 
Kyoto, because of rigid height 
restrictions. 

City officials, also disturbed 

by the fell in economic activ- 
ity. have not missed the oppor- 
tunity to use the 1200th anni- 
versary to request funds from 
central government and to 
change stringent rules cover- 
ing development projects. They 
recently announced a compro- 
mise pb"T tightpnfng b uilding - 
rules around historic sites, but 
easing height restrictions in 
the southern industrial areas. 

Following the rule changes, 
rebuilding has begun at Kyoto 
railway station, located in the 
south of the city, to include a 
concrete and g* niBg monument, 
400 metres wide and 58m high, 
in fl pTfifflftni nr at fon Of Ow wwnj - 
versary. 

The business community 
hopes the project will help to 
vitalise the regional economy. 
They hope the building, which 
will house a large shopping 
centre complex and a hotel, 
will bring young consumers of 
the Kansai area to Kyoto; 
while an express railway line, 

linking the D0W Wansai airport 

to Kyoto, which does not have 
a city airport, will give visitors 
and cargo easier access. 

Many conservationists, how- 
ever, fear that economic recov- 
ery wffi mean more develop- 
ment and farther urbanisation. 


Emiko Terazono 


William Dawkins offers suggestions to tourists 


Imperial and 



The chances are that most 
foreign tour is ts In Warwafl wm 
be business travellers, and will 
there for e need to be selective. 

The yen's inexorable rise 
makes a Japanese holiday pro- 
hibitively' Bifriiwive for most 
foreign travelers, and .for an 


tourists too. For business tour- 
ists, inevitably short off time, 
the secret of getting the most 
out of Kansai is not to try to 
see too much at once. 

The most popular ' tourist 
spot in the region - and in the 
whole of provincial Japan, for 
that matter - Is of course the 
former imperial capital, Kyoto, 
blessed with more than 1,000 
Buddhist temples and 400 

fihtwfn ahriwas - 

It received just over 38m visi- 
tors last year - 25 times its 
own population - of whLdh less 
than L5 per cent ware foreign- 
ers, mainly from North Amer- 
ica, South Korea and Taiwan, 
according to the city’s tourist 
office. The recession has 
ensured that numbers overall 
are down by about 15 per cent 
this year, despite the' multiple 
series of festivals, concerts and 
exhibitions laid on for Kyoto's 
1 , 200 th anniversary. 

Mr Teach! Aramaki, gover- 
nor of Kyoto prefecture, Is 
using the anniversary as an 
excuse to lean on central gov- 




KDD 


Overseas Communications japan 


KDD services are also 
available at these fine hotels 
in Osaka. 


▲ ANArSheraton HOTEL 

OSAKA 

PHONE +81-9-347-11 12 FAX: +81-6-348-9208 


Nankai-Osaka 

PHONE +81-6-213-8281 FAX; +81-6-213-8840 


hOTfLnewHmihYU 

PHONE +81 -6-372-51 01 FAX: +81 -6-374-6885 


HOTEL NEW OTAN1 OSAKA 

PHONE +81-6-941-11 1 1 FAX: +81 -6641 -9769 


sfe hotel nikko osaka 

PHONE +81-6-244-1111 FAX: +81 -6-245-2432 


HR HOTEL OSAKA GRAND 

PHONE +61-6-202-1212 FAX: +81-6-227-5054 


INTERNATIONAL HOTEL 
OSAKA 

PHONE +81-6-941-2661 FAX: +81-6-941-5362 


KM NrtfMKrtl 

Ini SOUTH TOWER HOTEL 

PHONE +81-6-646-1111 FAX: +81-6-648-0331 


OSAKA 



PHONE +81-6-347-7111 FAX: +81-6-347-7001 


Another Important Kansai lYadition. 
OOI, Your Link to the World. 



iftOSAKATERMINAL 

HOTEL 

PHONE: *81-8844-1235 FAX: *81-6444-1130 


Osaka 


THE PLAZA 

PHONE: *81-6-453-1111 FAX: +81 -8454-0 1 69 


M ROYAL HOTEL 


At KDD, you the customer are very important to us, and it is our mission to provide 
you with the best communication service possible. 

Our extensive international communications network provides economical direct- 
dialing service to over 218 areas throughout the world, with special night-time and 
holiday discount rates. Backed by the latest technology our network (s strictly 
monitored for reliable service that makes KDD the easiest, most dependable direct- 
dial service in Japan. 

Looking toward the future, KDD continues to refine our technology to bring the 
world closer together. This approach has earned us a reputation as one of the best 
international communication companies in the world. Just dial 001, 
and make the right connection. 


PHONE +81-8-448-1121 FAX: +81-6-448-4414 


X ANA-SHERATON HOTEL OSAKA 
I HOLIDAY 1N-N NANKAI OSAKA 
:*■ HOTEL NEW HANKYU 
£ HOTEL NEW CTANl OSAKA 
9 HOTEL NIKXO OSAKA 
I. HOTEL OSAKA GRAND 
INTERNATIONAL HOTEL OSAKA 
« NANKAI SOUTH TOWER HOTEL OSAKA 
■9 OSAKA HILTON 

* OSAKA TERMINAL HOTEL 
» THE PLAZA OSAKA 

* ROYAL HOTEL 




■ For example, to dial 123-4567 
In New York from Japan: 


00 H- 212 - 123-4567 



■International calls may also be made 

from public telephones {green with 

gold lace plate or gray). 

■An outstdfi fine number is needed 
when making international caffe from 

your hate! mom. 



eminent for cash and planning 
permission to modernise the 
city’s Infrastructure. "We were 
lucky not to have been bombed 
in the war, but *hfe means we 
have to revitalise earlier than 
many ottufr cities. Kyoto today 
Is trying to regain its vitality,” 
he says. 

Not that Kyoto lacks vitality 
in its present condition. 
Crowds, can. be expected at 
most of the main sites, in and 
out of season. For most visi- 
tors, the first port off call is the 
the Kiyonuzu Temple, propped 
an massive wooden pillars on a 
hiTlmd e, commanding a splen- 
did view off the dty. 

The next essential Is the 
golden pavilion, a modem rep- 
lica of the flve-oentury old orig- 
inal, burned down in I960. 
Nearby is Ryoanji temple, with 
its Zen Buddhist rock-and- 
gravel garden, which most for- 
eigners and not a few Japanese 
ftnrf an aas+tiaHn puzzlfi. 

If you have any energy left, 
visit Nqo castle, former resi- 
dence of the alLpowerfulToku- 
gawa Shoguns, who held Japan 
under despotic rule for two and 
a half centuries, while puppet 
emperors lived in splendid con- 
finement just down the road. 
The Shoguns, never sure from 
where the next traitor would 
spring, installed at Nfio what 
must be one of the world’s ear- 
liest burglar alarms, floor- 
boards designed to betray 
intruders by squeaking at 
every step. 

The real pleasure in visiting 
Kyoto, however, is being able 
to find your way off the beaten 
track. It would be a waste off an 
opportunity to stay in me off 
the many bland western-style 
hotels in the dty centre, one of 
which recently annoyed the 
local monks by flouting a little- 
observed pfenning regulation 
against new buildings more 
than 40 metres talL 
For visitors who want a fla- 
vour of traditional Japan, I rec- 
ommend one of the old-style 
tatami room inns to. the Hlgash- 
imaya hills an the outskirts of 
Kyoto. The best of them have 
an. atmosphere off courtly tran- 
quillity. This is true of . 
Yadriyo*, where I stayed, and 
which alio happens to be three 
minutes' walk from the delight- 
ful Nanzeqji temple. 

If you are lucky enough to 
have a second day’s sight- 



Easier than 
ever to get to. 


Osaka has just gotten closer to International 

cities with the opening of 

the Kansai International Airport (KK). 

That means The Westin Osaka 

is also a lot easier to get to. 

In a city justly proud of its world-class 
hospitality. The Westin Osaka's 
excellence stands out. 


* Easy access with an advantageous location right by 

Osaka Station.' 

* Spacious guestrooms and the inimitable Westin service 
to relax travelers. 

* Direct transport to the new KDC airport 



THe Westin Osaka 


The Westin Osaka Is convantenUy located near JR Osaka Ststton. 
1-1-20 Oyodo Mate, Klt&4<u, Osaka 531. Tet 0gA40.ni Fmcoe. 44 G.noo 


The Westin Tokyo opens October 14. 





seeing, I suggest a visit to 
Nara, a short train ride from 
Kyoto. This was Japan’s first 
. imperial capital, before the 
emperor switched to Kyoto 
1,200 years ago after a row 
with Nara’s Buddhist monks. 

Parkland, stocked with hun- 
dreds of tame red deer, occu- 
pies about half of central Kara. 
Most of the main sites are situ- 
ated in pleasant shady glades, 
from which traffic is hannat^ 

‘ Some people - I am one of 
them - prefer green 
uncrowded Nara to Kyoto's' 
urban bustle. ~ 

It was here that Buddhism 
first flourished in Japan after 
being imported from China, 
from the sixth century. Fortu- 
nately Buddhism’s most splen- 
did early Japanese traces are 
still intact, and they are all 
here. 

The grandest of these is the 
eighth century Great Image of 
Buddha, stud to be one of the 
largest bronze sculptures in 
the world. It is housed in the 
Todaqi Temple, claimed to be 
the world’s largest wooden 
building, even after being 
burned down and rebuilt, at 
two-thirds of its original size, 
in the late 17th century. Most 
of Japan's ancient buildings 
are made off wood, so the fete 
of Todafii temple, and Kyoto’s 
golden pavilian is all toocoan- 
mon. 

Turn left out of TodaJJi’s 
main entrance, wander up 
stone steps Into the wooded. 
hins . which conceal a whole 
complex o f les ser-known tem- 
ples, repositories for some of 
Japan’s finest religious art I 
reco mmend two for special, 
attention. The Nigatsu-do Hall, ‘ 
readied by a covered stairway, 
offers a magnificent view of 
Todaill’s monumental roof. 
Next to It is the Sangatsu-do 
Wail, which contains a remark- 
able collection of early Chinese 
sculptures of Buddhist deities. 
They are poorly lit, so take . 
time to let your eyes gat used 
to the gloom. 

□ For accommodation, I can 
suggest Nara' Hotel*, a half-tim- 
bered 13th century-style edifice, 
habitually used fey members of 
the Japanese imperial family 
when they reatstt their ancestral 
roots. It is a short walk from 
there to the temples. Yaddyo bm, 
Kyoto (tel 075 771 414$); Nora 
Hotel, Nam (td 0742 26 3300). 



s ig° a,s 


0* ;n CHtf** 1 
4 liicl eS 10 


; y ' ^ a*: 

**** ;; 


& 

1- 

r 


Dlls 


i 




fcjAr- 


V- .. 

y-- .■ 




IS TV*’ * ~ -- 





J 


mpiMistd: 


21*.. • • 

■ 

2 £JZ- 




| Si.ii.--w .. • . 

"*#nD«W HLMM. 


JUaUA’O 




^■1 

**-■.-£ :v ■- ■ 


' ’ 

^ town: 

•Jvn.* • . . 


. — • -mi 

... 

v— “ • 


Sssy-.- 




• • - 

- ■ 




i. 


"=v/. 


4... 


- 

.. 




Sf-ljfi 

■ 

Si > 

it 

SJi 




■ ■ j 
i 




A