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TUESDAY SEPTEMBER 6 1994 


iM'X: 




Brazil seeks to 
calm investors as 
shares fall 8.6% 

B razil tri ed to assure domestic and intern ation a l 
observers that the country’s latest anti-tnflatton 
plan remained on course in spite of the weekend 
resignation of finance minister Rubens Ricupero. 
Worries over the resignation and the possibility 
that it could affect the chances cf Fernando Hen- 
ri que Cardoso, the government's candidate in ™>yt 
month's presidential election, led to an 8.6 per cent 
drop on the Sao Paulo stock market by lunchtime, 
and falls for Brazilian bonds on international 
markets. Page 16 

MetaHgeseHschaft expects to earn more thar> 
DMlOOm ($64m) in operating profits in the 1994-95 
financial year after last week’s agreement to 
staunch losses on controversial oil purchase con- 
tracts with Castle Energy of the US. Page 17 

R ussi ans economics revolution: The Russian 
g overnm ent said it would establish a series of new 
institutions teaching market economics, run by a 
small core of specialists and a circle of s wsoc i a ted 
economists “of the western type”. Page 3 

S Africa motor strike ends: A five-week strike 
that paralysed South Africa’s motor industry ended 
as workers agreed to ret u rn to factories, but the 
wage dispute has not been resolved and union lead- 
ers say discussions will continue. Page 4 

Ex-head of E German Stasl put on trial 

Erich MifiBte (left), for- 
mer head of East Ger- 
many’s Stasi secret 
police, went on trial in 
Berlin for the killing of 
people who tried to flee 
to the west German 
authorities say more 
than 400 people were 
killed trying to escape 
East Germany during the 
cold war. Afielke, 86, is 
being tried on six repre- 
sentative cases but says he is bail and unfit for 
trial. The trial was adjourned for two days when his 
lawyers accused the presiding judge of bias. Page 2 

Bank Austria is looking for international 
strategic financial partners after the announcement 
by the federal government that ft wants to sell its 
218 per cent voting stake in the country’s largest 
bank. Page 17 

(IS m o cM cal sales rise: Sales of US prescription 
medicines have rebounded this year in spite of 
healthcare reforms, while Japanese and European 
markets for medicines continued to splutter. Page 5 

Lufthansa: The latest stage in the German 
government’s privatisation of the national airline is 
set to go ahead at the end of this month, said Dresd- 
ner Bank, which is coordinating the international 
and domestic offerings. Page 17 

Swiss charged over ‘supergun’: Five Swiss 
businessmen have been charged with knowingly 
supplying components to Iraq for the so-called 
supergun in contravention of the Swiss weapons 
export control law. Page 2 

Nigerian ruler bolsters position: The collapse 
of Nigeria’s two-month oil industry strike, aimed at 
forcing an end to military rule has left Gen Sani 
Abac ha’s regime in a strong position and the civil- 
ian opposition in disarray- Page 4 

ABN Amro: The decision by the Netherlands' 
bank to use its name on a network of investment 
banking operations around the world is part of an 
ambitious plan to raise its profile. Page 17 

Quebec warned on independence: Quebec 
business leaders and other federalists warned of 
dangers to the francophone province's economic 
prospects if the Parti Quebfecois pressed ahead with 
a quick drive towards independence from Canada 
after next Monday’s provincial election. Page 6 

Kyrgyzstan government resigns: The 

government of the central Asian state of Kyrgyz- 
stan resigned, apparently to strengthen the hand of 
the pro-reform president, Askar Akayev, against the 
conservative-dominated parliament Page 5 

Australian BSP shot dead: John Newman, 43, a 
Labor member of the New South Wales stat e parlia- 
ment and an outspoken critic of Asian crime gangs, 
was shot dead outside his home in the largely Viet- 
namese Sydney suburb of Cabramatta. 

VWs for India: European carmaker, Volkswagen 
of Germany, leading European carmaker, has 
linked up with Eicher Goodearth, Indian motor , 
vehicle and tractor manufacturer, to produce Volks- | 
wagen cars for the Indian market. Page 8 j 

Iraq plans biggest miroque: Engineers in 
Baghdad have drawn up plans tor what they say 
will be the world’s largest mosque. The structure 
will cover an area 1,800 metres by 700 metres. j 

US baseball Impasse: As America celebrated its 
first Labor Day holiday without mulor league base- 
ball, hopes were fading that the deadlock between 
players and team owners might be broken m time 
for at least a shortened season. Page 16 


Civil airline consortium to set up subsidiary 

Airbus to control 
development of 
military aircraft 


By Bernard Gray in Pnmborougli 

Development and production of 
the Future Large Aircraft, 
Europe's proposed military trans- 
port aircraft, will be managed by 
Airbus, the civil airliner consor- 
tium, which yesterday 
announced plans tor a military 
equipment subsidiary. 

The move is designed to 
strengthen the FLA group and 
help market the aircraft to poten- 
tial customers, including the 
Royal Air Force, which is consid- 
ering buying the FLA or the Her- 
cules aircraft produced by Lock- 
heed of the US. 

Announcing the move in a 
full-scale mock-up of the FLA at 
the Farnborough International 
Air Show . Mr Dick Evans, chief 
executive of British Aerospace, 
said that Airbus had an excellent 
record of m anag in g aircraft 
development projects. 

The separate military subsid- 
iary to be formed to handle the 
FLA will include the Italian aero- 
space company, Alenia, as well 
as the four Airbus partners. 
Deutsche Aerospace, Aerospa- 
tiale, British Aerospace and Casa, 
of Spain. 

The consortium estimates that 
there may be a market for 360 
FLA in Europe over the next 20 
years. The intention is to provide 


customers with a fixed-price, 
fixed-specification programme to 
reduce the risk of cost over-runs. 

Exact shareholdings in the mil- 
itary subsidiary will depend on 
the financial commitments from 
the companies involved and their 
respective governments, and also 
on the number of FLA each coun- 
try requires. Shareholdings in 
the main Airbus Industrie con- 


Page 8 

■ Airbus upbeat on FLA 

■ R-R wins $20m order 

Lac Page 16 


sortium will not be affected by 
the move. 

The share-out of work on the 
FLA will be determined by simi- 
lar criteria. British Aerospace 
hopes to make the wings for the 
new aircraft, while Italy and 
Spain are competing for the final 
assembly line. 

Mr Evans said the rapid consol- 
idation of the US defence indus- 
try posed challenges for Euro- 
pean aerospace companies. 
“Bringing FLA within the Airbus 
consortium is one way of deepen- 
ing ties between European com- 
panies," he added. 


The FLA is competing with 
Lockheed's C-I30 Hercules to 
replace the RAP’s ageing trans- 
port fleet. Lockheed has valid 
export licences for the UK, but it 
is under investigation in the US 
over alleged bribery. It will be 
that much harder for the UK 
defence secretary. Mr Malcolm 
Rifkin rl, to present an overseas 
winner if it is also the subject of 
corruption allegations. 

Mr Evans said that the FLA 
would carry more equipment fur- 
ther and fester than the latest 
generation C-130J Hercules at 
lower operating costs. He added 
that the FLA group would be 
able to make firm proposals to 
the UK Ministry of Defence in the 
first quarter of next year, once 
full evaluation of the project was 
complete. 

“The FLA is right operationally 
for the RAF,” said Mr Evans. “It 
is also right economically with 
lower life-cycle costs and right 
industrially as it will protect j 
35,000 high-tech aerospace jobs in 
Europe. This is our only opportu- 
nity for 35 years to became a part j 
of a large transport a ircraft pro- 
gramme.” 

In a separate announcement, 
Lockheed said that refurbishing 
the existing RAF Hercules fleet 
until the FLA became available 
in 2002 was not an option. 



& v- , 


r* &*■■* -w i 



UNITED NATIONS 




Abortion should be legalised, 
Mrs Gro Harlem Bnmdtland, the 
Norwegian prime minis ter, told 
the United Nations population 
conference in Cairo yesterday. 
She implicitly accused the 
Vatican and Islamic clergy of 
hypocrisy for opposing the 


proposed text for the UN final 
document on the ground that it 
condoned abortion and 
extramarital sex. Bruntland cuts 
to heart of Cairo conference. 

Page 5; UN population 
conference hits language barrier. 
Page 16 Plcra Awodaetf Press 


Kohl plays down plan for multi-speed EU 


By Lionel Barber in Brussels and 
Janies Blitz ki London 

Chancellor Helmut Kohl of 
Germany has sought to quell a 
diplomatic storm over his ruling 
Christian Democrat party’s pro- 
posals to create a “hard core” of 
five nations in a multi-speed 
European Union. 

After the UK joined protests 
from Denmark and Italy, Mr Kohl 
distanced himself publicly yester- 
day from the proposals put for- 


ward last week by Mr Wolfgang 
Schafible, parliamentary leader 
of the CDU-CSU coalition gronp. 

Mr Dieter Vogel, chief govern- 
ment spokesman, disclosed that 
Mr Silvio Berlusconi, the Italian 
prime minister, had telephoned 
Mr Kohl yesterday and that the 
Chancellor had reassured him, 
along with other EU leaders, that 
the CDU-CSU paper was not offi- 
cial German policy. 

“It is not a paper which has 
been agreed with the govern- 


ment." said Mr VogeL He said Mr 
Berlusconi was “satisfied with 
the exp lanatio n". 

However, Italian officials 
expressed surprise that Mr Kohl 
had flailed to step in earlier. 

Speculation grew in European 
capitals that Mr Kohl may have 
given the paper his unofficial 
blessing, in order to float a “trial 
balloon" ahead of the 1996 inter- 
governmental conference to 
review the Maastricht treaty. 

Several of the Chancellor's 


closest advisers are known to 
favour a public debate to head off 
misunderstandings and reach 
dear decisions on future EU inte- 
gration at the 1996 conference. 

The CDU-CSU paper calls for 
France, Germany, Belgium, the 
Netherlands and Luxembourg to 
press ahead fester with European 
integration. A day before it was 
published, Mr Edouard Balladur, 
French prime minister, suggested 
a “three-tier" Europe with the 
Franco-German alliance at its 


core; but he did not name names. 

On Friday, the Italian foreign 
ministry warned that the CDU- 
CSU paper could risk the 
“break-up" of the EU. Mr Klaus 
K i n keL German foreign minister 
and head of the FDP liberal 
party, the government coalition 
partner, condemned the paper. 

Mr John Major, UK prime min- 
ister, intends to deliver a riposte 
in a speech on Europe in the 

Continued on Page 16 


UK moves 
to ease 
deadlock 
over IRA 
ceasefire 


By John Murray Brown 
and Tim Coorte in Belfast 
and James BHtz In London 

In a new attempt to break the 
deadlock over the wording of last 
week's IRA ceasefire declaration, 
the British government yesterday 
invited republican leaders to 
state unequivocally that their 
intention is to end the violence 
for good. 

Sir Patrick Mayhew. the North- 
ern Ireland secretary, said yester- 
day: “We are not insisting on a 
particular form of words. We just 
need to have an unequivocal 
assertion that they intend it 
should be over for good." 

Sir Patrick's remarks appeared 
to indicate that a response based 
on republican intentions rather 
than a more specific phrasing 
could be sufficient to open the 
door to talks with Sinn Fein. 

Referring to the differing inter- 
pretations of the British and Irish 
governments of the IRA state- 
ments to date he said be had no 
doubts about Dublin's sincerity 
in accepting the IRA had ended 
its campaign, but said “we have 
to be satisfied from what these 
people say themselves about 
their own intentions". 

Sir Patrick was due to meet in 
Belfast last night with Mr Dick 
Spring, the Irish foreign minister. 
The meeting aimed to try to 
agree a common response to the 
ceasefire and also to discuss 
progress on a framework docu- 
ment on new constitutional 
arrangements for the province, 
due to be tabled at inter-party 
talks later this year. 

Mr Spring was also expected to 
brief Sir Patrick on his meeting 
in the US with President Bill 
Clinton. Downing Street officials 
yesterday played down sugges- 
tions that Mr Gerry Adams, the 
Sinn Fein leader, was about to 
receive permission from the US 
authorities to make a wide-rang- 
ing tour of American cities. 

Sinn F6in officials said they 
were examining the possibility of 
a visit to the US by Mr Adams 
and other republicans, including 
Mr Martin McGuinness. 

A Downing Street spokesman 
said that the US government had 
given no formal indication to 


Continued on Page 16 


Choice demonstrates changing attitudes to Brussels 

Cresson and de Silguy named 
as French EU commissioners 


This announcement appears as a ma tier of record only. 


By David Buchan bi Paris 

France's new European 
commissioners are to be Mrs 
Edith Cresson, a former Socialist 
premier, and Mr Yves-Thibault 
de Silguy. the top official in 
charge of trade and European 
policy in the office of Mr Edouard 
Balladur, the prime minister. 

The contrasting pair illustrate 
changing attitudes in Paris to the 
European executive. France's 
outgoing Socialist president, Mr 
Pranpois Mitterrand, has nomi- 
nated an ex-premier. Mr Balla- 
dur, the Gaullist premier, in nam- 
ing a bureaucrat, has chosen to 
underline the new French conser- 
vative desire to see commission- 
ers as technocrats under the 
political thumb of European 
Union ministers. 

The issue of seniority between 
France’s two commissioners has 
been made less acute by the 
Maastricht treaty which limits 
the number of commission vice- 
presidents to one or two, at the 
president’s choice. In a college of 
commissioners which presently 
number 17, but with Nordic and 
Austrian enlargement could rise 
to more than 20, it is not clear 
that either of the French appoin- 
tees would make vice-president 

Mr de Silguy served in the 
Brussels office of French commis- 
sioner Francois-Xavier OrtoH in 


European Nm — 
Wonefcnal Non_ 
AnaricanNBH — 
Worid Tods News. 
UK News 







Edith Cresson, chosen by France 
as an EU Commissioner 

the early 1980s, and spent 19904)3 
with the state-owned Usinor-Sad- 
lor steel company. He is known 
to be interested in either the 
competition or external trade 
dossiers presently held by Mr 
Karel Van Mist, of Belgium, and 
Sir Leon Brittan, of the UK, 
respectively. 

Some other commissioners - 
and governments - will be wary, 
however, of seeing such portfo- 
lios pass into French hands. Mr 
de Silguy orchestrated France's 
negotiations for the General 
Agreement on Tariffs and Trade, 
and some of the toes he trod on 
in Brussels remain bruised. 


Mrs Cresson is most remem- 
bered in France for her unpopu- 
lar stint as prime minister in 
1991-92. However, she remains 
personally close to Mr Mitter- 
rand, whose desire to grant her 
wish to go to Brussels posed Mr 
Balladur a problem of political 
imbalance with his choice. But 
he decided that the choice of Mr 
de Silguy, who has also worked 
for Mr Jacques Chirac, the leader 
of the RPR Gaullist party, would 
be impossible for his presidential 
rival to oppose. 

This autumn. Mr Jacques San- 
ter. Luxembourg’s present prime 
mini ster and the commission's 
president-elect, will preside over 
the distribution of portfolios 
among the new commissioners 
taking office next January. 

Michael Lmdemann in Bonn 
writes: Mrs Monika Wulf- 
Mathies, 52, leader of Germany’s 
OTV public sector union for 12 
years, looks set to become one of 
her country’s two European com- 
missioners after she was pro- 
posed by the opposition Social 
Democratic party. However, her 
formal nomination will depend 
on cabinet approval She would 
be the first woman to represent 
Germany on the Commission. 

A new Commission formally 
begins work on January 7 but not 
before the European parliament 
has approved all 17 members. 



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CONTENTS 


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Leader Page 

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15 

Cnssand 

ConvauriM 

26 

ManageronX 

10 

imLC^Mds- 

22 

Observer 

15 

Td- Companies 

18-22 

Teehnefofflr— 

12 

HarfeUi 


MB 

13 

CMnutfea — 

2fl 


-IB Aita Guide. 


.13 FTAcuflts. 


FT Wold Actuaries 36 SfcraMmttm 3*3 

FoMpi Ettfianoes „ — 34 

Grid Marie* — -28 Tratftaal OpBcra 38 

E**yOl*re » lmkn3E „ 

hL Sand Santee 22 

MantQsd Finds _^30-34 vmatrvt 'Ey* 

Money Markets 34 

HecanttnuH 30 Bouses 3436 


FLEMINGS 

INTERNATIONAL INVESTMENT BANKING 


LONDON. NEW VORK. HONGKONG. TOKYO. PARIS. FRANKFURT. MADRID. ZURICH. GENEVA. MILAN 
SYDNEY. BANGKOK . TAIPEI . MANILA . JAKARTA . SEOUL . BELUNG - SHANGHAI . SHENZHEN 
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■Pi TUT FINANCIAL TIMES LIMITED 1994 No 32.464 Week No 36 LONDON ■ PARIS - FRANKFURT ■ HEW YORK ‘ TOKYO 



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NEWS: EUROPE 


Swedish opinion polls give 
election campaign hefty j olt 

Hugh Camegy on a walk-over that has suddenly become a race 


FINANCIAL TIMES TUESDAY SEPTEMBER 6 1994 

EUROPEAN NEWS DIGEST 

Polish bank 
chief warns 


Sweden’s 
\ general elec- 
. \ tion, for weeks 
apparently ltt- 
‘ tie more than a 

■'4- '-pffllxp triumphant 

-i Wir A v 1010 ^ marc h 
i'jvv 'W' Jm for th® opposi- 
<■& jm§k tion Social 
Democratic 
ipr party, has sud- 
^ denly acquired 
SWEDISH an air of uncer- 
EUECTIONS tainty which 
September 18 ^revitalised 
^ the campaign 

with less than two weeks to go. 
Opinion polls published since 
Sunday showing a slide In 
Social Democrat support and a 
marked swing to the Left and 
Environment parties not only 
jolted politicians. They 
alarmed financial markets 
which for the past two months 
have pushed up interest rates 
and driven down the krona 
because of concern about the 
yawning budget deficit 
The prospect of a minority 
Social Democratic government 
reliant on a resurgent red- 
green camp for a parliamen- 
tary majority yesterday helped 
knock more than 2 per cent off 
tho Stockholm stock exchange 
general index and send five- 
year government bond yields 
up more than 40 basis points to 
more than 11 per cent Such 
levels of interest rates already 
threaten to choke off Sweden's 
faltering recovery. 

What upset the markets and 
the Social Democratic leader- 
ship was not so much the foil 
In support for the party to 
below 50 per cent - in one poll 
the reverse was enough to 
deny it the parliamentary 
majority most polls have pre- 
dicted throughout the summer. 
Even the mighty Social Demo- 
crats. who have ruled Sweden 
for most of the past 50 years, 
have rarely achieved such a 
position in recent times and Mr 
Ingvar Carisson, party leader, 
has long been braced for a slip. 

What he did not anticipate 
was such a powerful shift to 
the left, including the projected 
return to parliament of a resur- 
gent Environment party, 
which foiled to overcome the 4 
per cent entry barrier to parlia- 
ment In 1991. The leftward 
shift was apparently prompted 
by the Social Democrats' 







The apparent march to victory of Mr Ingvar Carisson (top) has 
been put in doubt, hot the news is small comfort to Mr (fori Btldi 
(above), the prime minister nams Aw mrtntfdhwi <>***» 


recent espousal, albeit reluc- 
tantly, or a programme of pub- 
lic spending cute to trim the 
deficit and curb Europe's fast- 
est rising state debt 

Meanwhile, the four parties 
in the governing right-centre 
coalition - Prime Minister Carl 
Bfldtis conservative Moderates, 
the Liberal and Centre parties 
and the Christian Democrats - 
fell back in the polls to less 
than 40 per cent together. 

This undermined Mr Carls- 
san's (and the markets') pre- 
ferred option should he foil to 
win a majority: to forge either 
a formal or informal alliance 


with the Liberals, or possibly 
the Centre party, aimed at 
gathering broad parliamentary 
support behind a rigorous, 
long-term fiscal policy. 

The shock of the poll results 
was enough to shake Mr Caris- 
son out of what had seemed a 
severe case of election compla- 
cency. Last week, he retired to 
a mountain holiday house for 
three days to rest and plan for 
government. He repeatedly 
refused to meet an increasingly 
desperate Mr Bildt In a 
face-to-face television debate. 

Then, an Sunday, he agreed, 
and within hours the two men 


were an air in a strikingly hos- 
tile confrontation which 
clearly illustrated the ideologi- 
cal split between them. Mr 
Carisson insisted that three 
years of “new liberalism” 
under Mr Bildt had failed and 
promised investment to tackle 
unemployment (now running 
at 14 per cent) of the work- 
force). 

For his part. Mr Bildt 
att yfrpH the Social Democratic 
plan to raise income, capital 
and wealth taxes and said a 
return to traditional Social 
Democrat welfare policies 
would he a disaster for Swe- 
den. He warned voters not to 
“buy a pig in a poke” from a 
“red-green mess that will 
undermine Sweden's credibil- 
ity” - 

The dispiriting reality for Mr 
Bildt, however, is that so for 
the polls show no sign of 
enthusiasm among voters for 
continuing his campaign to 
reform Sweden’s overweight 
public sector and put the 
emphasis of job creation on the 
private sector through favoura- 
ble income, corporate and capi- 
tal tax regimes. 

Instead, the latest leftward 
swing has put pressure on the 
Social Democrats to stiffen 
their commitment to the wel- 
fare state. This at a time when 
- despite scone benefit cuts by 
the present government - 
recession has pushed up public 
spending to a record level 
equivalent to almost 70 per 
cent of gross domestic product, 
by far the highest in the 
Organisation for Economic 
Cooperation and Development- 

Many in the Social Demo 
era tic leadership acknowledge 
that this imhalanra has to be 
tackled. Hence their preference 
to work with the Liberals, 
whose leader Mr Bengt Wester- 
berg supports the welfare state 
and has a friendly attitude 
towards the Social Democrats. 
However, the polls have shown 
liberal support slipping as low 
as 6 per cent, compared with 
their 91 per cent showing in 
tha 1991 general election. 

If the party stumbles badly 
an September 18, Mr Wester- 
berg has indicated he will step 
down as party leader, throwing 
the issue of cooperation or 
coalition with Mr Carisson fur- 
ther Into doubt 


Five Swiss on ‘supergun’ charge 


By Ian Rodger In Vienna 

Five Swiss businessmen have been 
charged with knowingly supplying com- 
ponents to Iraq for the so-called supergun 
In contravention of the Swiss weapons 
export control law. 

The supergun, which was apparently 
designed to fire a tonne of anthrax on 
Israel, has already become a cause dtl&bre 
in the UK A trial of British businessmen 
for supplying components for the super- 
gun and other Iraqi military projects col- 
lapsed spectacularly in November, 1992 
when it emerged that ministers had 
approved the activity and suppressed 
evidence. The Swiss charged are four 
employees of Von Roll, a large metals 


group, and a director of the trading com- 
pany. Uldry. A federal prosecutor has sub- 
mitted the case to the federal court in 
Lausanne, which now has to decide 
whether or not to proceed with it 

Von Boll said in a statement yesterday 
that it stood folly behind its employees. 
Alter a thorough internal investigation, it 
was convinced that none of its employees 
soit any materials to Iraq which would 
have required export approvals. The com- 
pany said it had received a number of 
orders between 1988 and 1990 from the 
Iraqi Ministry of Industry. 

They Involved the supply of various 
machine parts, including cylinders, which 
according to the client’s declaration were 
intended for forging presses. Only belat- 


edly did it become dear that the client’s 
real purpose was not as had been 
declared. 

“Apparently, the Iraqi client intended 
to use the components for the construc- 
tion of a so-called supergun, a cannon 
whose size and weight was several times 
greater than any ever seen. Whereas the 
greatest barrel length seen in the last 20 
years was 37 metres with a calibre of ISO 
millimetres, the supergun had a barrel 
length of 157 metres and a calibre of 
1,000mm. 

“That tiie machine parte could be used 
for a weapon had already been ruled out 
because of their size. Our employees could 
not have foreseen the possibility of these 
parts having a military use,” it said. 


Italy’s Northern League in purge 


Italy's Northern League party 
yesterday expelled three promi- 
nent critics of its tough-talking 
leader, Mr Umberto Bossi, in a 
purge of dissenters, Renter 
reports from Milan. 

A party statement said the 
expulsion of Mr Franco Roc- 
chetta, Ms Marilena Marin and 
Mr Vittorio Aliprandi, an mem- 
bers of parliament from the 
Veneto region of north-east 
Italy, had been decided unani- 
mously by the movement’s rul- 
ing federal council. 

Mr Rocchetta. a junior for- 
eign minister in Italy’s coali- 
tion government who holds the 
largely honorary rank of 


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League president, has accused 
Mr Bossi of running a dictator- 
ship. He told Italian reporters 
in Berlin, where he was attend- 
ing a European conference, 
that the federal council was "a 
prison in which every voice of 
dissent is smothered". 

In an apparent reference to 
Mr Bossi, he said it was “pecu- 
liar that of the more than 20 
members of the council only 
one understands anything 
about politics . . . like a second 
Mao”. Mr Rocchetta led inter- 
nal criticism of Mr Bossi's rum- 
bustious brand of politics last 
week after the League leader 
hit the headlines with bizarre 


claims that he had personally 
prevented an armed revolt by 
northern Italians incensed at 
corruption in Rome in the mid- 
1980s. 

Mr Bossi followed this up 
with uncorroborated claims 
that the prime minister, Mr Sil- 
vio Berlusconi, was plotting to 
hold snap elections to rid his 
fragile four-month-old coalition 
of the League, which provides 
its parliamentary majority. 

Mr Bossi has engaged in a 
near non-stop slanging match 
with Mr Berlusconi, whom he 
accuses of trying to brake the 
League’s federalist ambitions. 
Last week Mr Bossi offered to 


resign as the League’s federal 
secretary, the effective leader- 
ship post, if members wanted 
but pledged to root out his ene- 
mies if he stayed in the job. 

A League statement head- 
lined “Big Purge in the North- 
ern League” said Mr Rocchetta 
and Ms Marin had been 
gxprfwi for trying to damage 
the movement. It accused th«»m 
of plotting to form a single 
party with Mr Berlusconi's 
Forza Italia “in order to delay 
federalism” Mr Aliprandi was 
expelled for “being in cahoots 
with Marin and Rocchetta”, 
the statement said-The three 
have the right of appeal. 


Nuclear industry urged 
to improve reputation 


Mr Hans Bllx, director general 
of the International Atomic 
Energy Agency (IAEA), said 
yesterday the end of the cold 
war should make nuclear 
power more acceptable but the 
industry was still tainted by 
scare reports of plutonium traf- 
ficking and safety breaches, 
Renter reports from Vienna. 

Mr Blix said more countries 
would adopt nuclear power to 
generate electricity only if the 
industry continued to demon- 
strate its safety and environ- 
mental advantages. 

Mr Blix said in a speech 
opening a four-day conference 
on the future of nuclear power 
said It Is regrettable that the 
issues which now dominate the 
media “tend to create an atmo- 


sphere in which it is difficult 
to have a balanced public dis- 
cussion of the nuclear power 
option”. Delegates among the 
200 experts from 37 countries 
stressed the need for global 
cooperation on safety and new 
technology, 

Mr Bllx said alarm over plu- 
tonium trafficking and the 
nuclear programmes of such 
states as Iraq and North Korea 
had overshadowed the benefits 
of nuclear power. 

“Disturbing as some erf these 
developments are, the; do not 
negate the overriding trend 
towards ever greater Interna- 
tional cooperation to promote 
the peaceful use of nuclear 
energy," he said. 

Russian nuclear experts in 


Vienna said Moscow’s depen- 
dence on nuclear power could 
double by 2010 but any farther 
boost in output would depend 
on safety and cost Russia has 
29 nuclear reactors, producing 
12J5 per cent of its electricity 
supply. Four more are under 
construction. 

Mr Viktor Sidorenko of Rus- 
sia's Atomic Energy Ministry 
told the conference that new 
plant designs were based on 
modern safety regulations and 
old units were now subject to 
stringent annual security 
checks. “International collabo- 
ration and co-operation have 
become an integral part and 
condition for activities in the 
field of nuclear power in Rus- 
sia,” Mr Sidorenko said. 


The independent powers of Poland's central bank are under 
threat, Ms Hanna GronkLewicz Waltz, the bank's president, 
has warned. Her claims , made in a newspaper Interview, come 
amidst a row with Mr Grzegorz Kolodko. finance minister, 
who wants the bank to lower its base rates and thus cut both 
the internal and external debt service burden. The central 
hank pointing to an alarming growth In money supply in 
July, due mainly to the trade surplus and mounting foreign 
currency reserves, wants to keep rates at their a nn u al 31 per 
cent level At the same time, the bank wants to lower the 
crawling peg mechanism from its monthly 1.6 per cent zloty 
devaluation to 18 per cent, a measure the finance ministry, in 
turn, is resisting. 

Yesterday, Ms Waltz questioned the government's 16 per 
cent inflation projection for next year and said this year's 23 
per cent target was unrealistic given current 30 per cent 
infla tion. Mr Kolodko has said that an interest rate cut and 
the switch to a lower devaluation rate should be linked. He 
has also suggested that the bank should lose its supervisory 
powers and a separate agency be established. Ms Gronkiewicz 
Waltz, nominated by President Lech Walesa, yesterday said 
the government "wanted to establish political control over the 
hanking system". Christopher Bobinski, Warsaw. 

Mitsotakis bribe allegations 

An investigating committee has asked the Greek parliament to 
bring criminal charg es against Mr Constantine Mitsotakis. the 
former prime minister, over allegations that he accepted 
bribes in the 1992 sale of a state cement concern. Officials said ; 
the parliamentary committee handed a petition to Mr Aposto- 
108 KaWlamanfa , par liamentar y president, a.-dring that Mr Mit- ■ 
sotakis and two of his former ministers be tried by a special j 
18-judge criminal court Mr Kaklamanis must now set a date 
within the next month for a debate and vote on whether to lift 
the immunit y of Mr Mitsotakis, who was conservative prime 
minister from 1990 to 1993, and send him for trial The 300-seat 
parliament where the governing Socialists have a clear abso- 
lute majority, has already voted in a separate case to try Mr 
Mifamtaina on charges of illegal wiretapping. Mr Mitsotakis is 
accused of accepting $228m in bribes in the sale of the 
stale-run Heracles cement company to Italy's Calcestruzzi 
Cement and Greece's National Rank for J22Sm. Reuter, Athens 

Russia expects to meet IMF 

Russia’s deputy prime minister. Mr Alexander Shokhin, said 
yesterday he expected the International Monetary Fund and 
Russia to hold talks by the end of October paving the way for 
a $4bn standby loan. Moscow would then be able to resume 
talks with the Paris Club of western government creditors. Mr 
Shokhin, Russia's chief debt negotiator, said an IMF delega- 
tion would come to Moscow this week to meet members of the 
government Another delegation would come after the IMF 
annual meeting due to take place October 34 in Madrid. 
Russia, which took over responsibility for servicing the debts 
of the framer Soviet Union when it fell apart in late 1991. owes 
western creditors about $80bn. The IMF has already lent 
Russia $3bn to help buttress the economy. Further loans will 
depend on Moscow’s willingness to press ahead with its eco- 
nomic reforms. Reuter, Moscow. 

Brussels probes VW deal 

The European Commission said yesterday it would investigate 
a plan by Volkswagen to acquire Sachsische Automobilbau 
(SAB), a former East German state-owned car factory, from 
the Treohand privatisation agency. Brussels said the German 
carmaker’s bid for 878 per cent of SAB's shares could fall 
under Its merger rules, but reserved a final decision. In July, it 
cleared the way for VW to receive around DM1 ^bn in subsi- 
dies toward its investment in SAB. The Commission has four 
weeks to decide whether the link-up could harm competition. 

If it finds “serious doubts" about the transaction, it must 
launch a deeper probe. AP, Brussels. 

Hungary-Romania pact talks 

The Hun garian and Ro manian foreign minis ters said yester- 
day they would restart negotiations for a much-delayed friend- 
ship treaty between theirstates. The Romanian foreign minis- 
ter. Mr Teodor Melescanu, who yesterday became the most 
senior Romanian government figure to visit Hungary Officially 
since the mid of communism in 1989, said he hoped the treaty 
would be completed by May l&ftFrevious negotiations broke 
down in August 1993 on border and ethnic minority issues. Mr 
Laszlo Kovacs, the Hungarian foreign minister, said normalis- 
ing relations with Romania was a priority of Hungary's new 
government and that Budapest was prepared to state in the 
treaty it had no territorial riaims on Romania - Bucharest's 
key condition for signing. In return, he hoped Romania would 
grant its ethnic minorities human rights according to Euro- 
pean norms. Romania’s treatment of its L6m-strong ethnic 
Hungarian minority has been a frequent source of tension 
between the two countries. Virginia Marsh, Budapest 

Mielke trial adjourned again 

Mr Erich Mielke, 86, one-time boss of former East Germany's 
Stasi secret police, yesterday once again side-stepped the Ger- 
man judicial system after his defence accused the presiding 
judge of bias. The trial in Berlin was adjourned after 25 
minutes when lawyers for Mr Mielke accused the judge, of bias 
because he had visited the former Stasi boss In prison last 
week. Mr MMke's defence has said it will try to have the case 
dropped on the grounds that the defendant is too old. Mr 
Mielke first went on trial with Mr Erich Honecker, the former 
East German le a de r , in November 1991 but was later sen- 
tenced to six years imprisonment for the murder of two Berlin 
policemen in 1931. To simplify the trial Mr Mielke is now 
accused or murdering a nominal six people who tried to cross 
the Berlin Wall Michael Lmdemtmn, Bonn. 

No German lottery winner 

Germany's record lottery jackpot failed to find a winner for 
the tenth week, rising to DM42m (£17.4m) ahead of the next 
draw on Saturday. Lottery officials said yesterday no winning 
card had been turned in for the latest weekly draw, which 
would have netted a top prize of over DM35m. Ten players 
each won DML9m for getting six of 49 numbers right, but 
winning the jackpot requires seven numbers. Germans have 
succumbed to lottery fever as the jackpot has mounted and 
bought more than 30m cards last week, with some help from 
W ^° com ® over from neighbouring countries. 

Reuter. Benin. 

ECONOMIC WATCH 

German wholesale setback 

“"turnover la July fall to DM78bn 
^!SJ- per * C !? t k)wer than durin € the same period 
leased by the federal statistics 
office, belying other statistics which suggest that Germany's 

pa ?‘ 1x1 nom toal terms, including sea- 
fcn by 1 per cant. Wholesale 
nSS seven “ on tos of tois year totalled 

STS? 1 ***** bigger than the very low levels 
J5®“ imtry was feeling the full force of Its 
333x1 Dat to real terms. Analysts have 
poor wlw )lesale figures refleerthigher 
feramd fw mvestment goods and expSte as the ecSr 
unemployment and a zero wage round have 
^^^oonsumer demand so for this year. Michael Unde- 

frOTrMv°^Siw e t nCy r ^f7 es ^ ^ 889.50m In August 
Bank of y snain r JiL!S pr °Sf ioaal f^ures released by the 
^ otnciai serves stood at 
as of August 31, the central bank said. 


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Yeltsin 
provokes 
anger of 
both left 
and right 

By John TlromhiU In Moscow 


Mr Boris Yeltsin, Russia’s 
president, wbo returned to hol- 
idaying in Sochi after visiting 
Germany and welc oming the 
Chinese leadership to Moscow, 
might well be tempted to 
extend his stay after coming 
under fire from both en ds of 
the political 

spectrum. 

In Moscow yesterday, Mr 
Boris Mironov, a j unior minis- 
ter who headed the state press 
committee before being sacked 
for expressing extreme nation- 
alist views, launched a sting- 
ing attack against the presi- 
dent, accusing him of failing to 
defend Russia's interests. He 
said Mr Yeltsin had “viciously 
rooted out” Russian pa t riotism 
and no longer deserved the 
trust of the 

people. 

“Russia was and remains a 
great power whose revival and 
return to its former position in 
the world is feared by other 
countries who have declared 
themselves to be the leading 
seven,” he said. Mr Mironov 
said Mr Yeltsin had rejected a 
programme of national revival 
needed to remedy Russians 
“spiritual crisis”. 

Mr Mironov was sacked on 
Friday after declaring “if Rus- 
sian nationalism is fascism, 
then I am a fascist” and sug- 
gesting that greater restric- 
tions should be imposed on the 
media. 

The liberal press reacted 
with outrage with one newspa- 
per comparing Mr Mironov’s 
remarks to those of the Nazi 
propaganda chief. JoseT Goeb- 
bels. A government spokesman 
explained Mr Mironov's 
removal bad shown how the 
authorities reacted to the pop- 
ular mood. 

But Mr Mironov defended 
himself at his former place of 
work yesterday despite 
attempts by his superiors to 
cancel the meeting. He rejected 
charges of anti-Semitism and 
accused the so-called demo- 
cratic papers, with the help of 
the president, of whipping up a 
"hysterical campaign” against 

him. 

However, Mr Yeltsin cannot 
rely on the uncritical support 
of the liberal media. 

A front-page article in 
Izvestia over the weekend crit- 
icised Mr Yeltsin for his behav- 
iour in Germany when televi- 
sion pictures showed him 
stumbling after drinking at a 
state luncheon and then insist- 
ing on conducting an 
orchestra. 

The newspaper, which has 
until now been a staunch 
defender of Mr Yeltsin's presi- 
dency, said Russians had 
watched the withdrawal of 
their troops from Germany 
with pride in what bad been 
achieved in 1945. 

“But there were also com- 
pletely different minutes in 
which millions of our compa- 
triots experienced com plete ly 
different feelings of awkward- 
ness, if not of shame,” it said. 

The newspaper compared Mr 
Yeltsin's behaviour with that 
of former Soviet leader Nikita 
Khrushchev, when he banged 
his shoe on the table at a 
United Nations meeting. 


Plan for western-style research bodies and schools to be established soon 

Russia boosts economics teaching 


By John Uoyd ki Moscow 

The Russian government 
yesterday shattered the inert 
world of post-Soviet academic 
economics by annftmgmg that 
it would establish a series of 
new institutions teaching mar- 
ket economics. 

Even more radically, it 
announced that the new eco- 
nomic research institutes 
would not contain “several 
hundreds of people” as in 
Soviet days, but would be lean, 
stripped-down think tanks 
with a small core of specialists 
and a circle of associated econ- 
omists - “of the western type”. 

The announcement appears 
to signal the end of a pro- 
longed period in which eco- 
nomic teaching hag lan grrigtiarf 
in a trough between full-blown 
Marxist-Lenfanst mrmngTid eco- 
nomics and a market-driven 
approach. 

Announcing the move, Mr 
Alexander Shokhin, deputy 
prime minister and hims elf a 
former academic, said that 
"unfortunately even the finan- 
cial crisis in the academy in 
Russia did not succeed in 
destroying the old-fashioned 
academic approach - so that 
what you have in the world of 
institutes are monsters with 
several hundred researchers 


which attract finance accord- 
ing to a head count We call <m 
the Academy of Sciences to 
break with this old system”. 

However, as Mr Shokhin 
said, thp Academy hac so far 
failed to respond -forcing the 
Economics Ministry in concert 


other leading countries in the 
world” - stressing that he saw 
the new institutes, and their 
regional affiliates, as forcing 
booses for central and local 
government officials with the 
loss of an established aversion 
to the market Mr Vladimir 


‘What yon have in the world of institutes 
are monsters with several hundred 
researchers which attract finance according 
to a head count. We call on the Academy 
of Sciences to break with this old system’ 


with the committee on higher 
education to reshape economic 
teaching round two main insti- 
tutions - the Higher Economic 
School, established two years 
ago, and a separate but linked 
Academy of Contemporary 
Economics. 

The School is already largely 
dedicated to teaching teachers 
of economics and will ggtenri 
this work; the academy is 
designed to be self-financing, 
offering paid courses to busi- 
ness people and others on the 
stock market, macro- and 
micro-economics and accoun- 
tancy. 

Mr Shokhin said that Rnggfa 
"must offer the same level of 
education In economics as 


Kxrelov, the minister for higher 
education, said that "it is 
important people know what is 
happening In the Russian 
economy”. 

The academic godfather of 
the schftfti is the remarkable 
Professor Yevgeny Yasin-a 
man whose name has been 
linked to economic reform ever 
since Mr Mikhail Gorbachev 
tried and failed to breathe 
some reformist life into a 
decaying communism in the 
late 1980s, but who has never 
been so identified with any one 
programme or faction as to 
join the other casualties litter- 
ing the road to reform. Mr 
Shokhin, himself the only 
senior survivor from the first 


Russian cabinet of 1991, noted 
that he and Prof Yasin had 
helped Ionn a dub of reform 
economists working in the gov- 
ernment -"but since many of 
these who had been part of it 
have since ceased to play lead- 
ing roles, it has been wound 
up”. 

Mr Yasin is likely to tai»» the 
position of president of the 
new academy - though the 
energy and initiative for the 
project comes from Mr Yaros- 
lav Kuzminov, provost of the 
Higher Economics School 
- who has doggedly poshed for 
reform of the teaching of eco- 
nomics for two years and yes- 
terday appeared to see it bear 
fruit 

Mr Yasin said that “a lot of 
what is written about reform 
here and its effects by journal- 
ists and publicists is an emo- 
tional reaction and one not 
really informed by knowledge 
of how a modem economy 
worts. 

What we have discovered in 
the last few years is that an 
economist can be very well 
educated in the economics of 
Marxism-Leninism and be not 
at all educated as aneconom- 
ist”. 

He said that there was a 
need for specialists to work in 
the government departments 


dealing with the economy. 
“This initiative that we aca- 
demics and professors are 
starting is not for us and our 
generation - it is for the stu- 
dents of today and tomorrow”. 

The programme is being 
assisted by an Ecusm (£3 5m) 
from the European Union and 
will be linked with the Eras- 
mus University in Amsterdam, 
the University of Paris 1, 
together with Milan, 
Oxford and Cambridge univer- 
sities. 

Part of the EU grant has 
gone to purchase copies of the 
textbook "Economics” by 
David Be gg, Radi Dombusch 
and Stanley Fischer - de- 
scribed by Mr Michael Emer- 
son. the BU ambassador in 
Moscow and himsel f a distin- 
guished economist, as “the 
best of its kind”. 

Mr Dombusch has been a 
sometime adviser to both the 
Russian and the Ukrainian 
governments - while Mr 
Fischer is now In place as the 
first deputy manag in g director 
at the International Monetary 
Fund, where one of his key I 
tasks will be reviewing the 
Fund’s work on Russia. 

He will no doubt be gratified 
that soon, the new economists 
will be speaking his 
language. 


General awaits call of destiny 

Gen Alexander Lebed is a man who makes the Kre mlin nervous, writes Chrystia Freeland 


_ „ In a Russia 

\ Jmm which is des- 
fJamQ perately short 
of heroes, Gen- 
eral Alexander 
BJROPEAN Lebed’s popu- 
PHORLE larity is on the 
rise. Commander of the 14th 
army in the Trans Dnestr 
enclave, the tan , broad-shoul- 
dered. blufreyed officer appeals 
to Russians looking for an 
alternative to the discredited 
co mm roust bosses of their past 
and the uncertain, sometimes 
blundering democratic leaders 
of the present 

At Gen Lebed’s headquarters 
in Tiraspol, the impoverished 
capital city of the Trans Dnestr 
Republic which broke away 
from Moldova three years ago, 
bero-worsfdp is strong. As they 
sweep invisible dust off the 
driveway, the immaculately 
uniformed young soldiers of 
the 14th army cannot find 
enough superlatives to 
describe their “comrade 
leader”: he is “as intelligent as 
Albert Einstein and as strong 
as Arnold Schwarzenegger”, "a 
second Suvorov, a second 
Kutuzov” (two of Tsarist Rus- 
sia’s greatest military leaders), 
“in all ways a remarkable 
man”. 

The past few weeks have 
demonstrated that Gen Lebed’s 
writ runs beyond Tiraspol The 
Kremlin has felt uneasy about 
Russia's most popular officer 
since this spring, when Gen 
Lebed told a Russian newspa- 
per that his country needed a 
man like Pinochet. the Chilean 
military dictator, and 
described the Russian presi- 
dent, Mr Boris Yeltsin, as “a 
minus”. However, when Rus- 
sia’s top brass -which is los- 
ing its grip over regional com- 
manders throughout the 
former Soviet Union - took on 
the outspoken general in 
August, trying three times to 


oast him. Gen Lebed won. 
Adoring Russians responded 
last week by electing Gen 
Lebed to the “Olympus” of 
Russia's 100 most popular poli- 
ticians. a list compiled 
monthly by the pollsters at 
Nezavisimaya Gazeta. one of 
Moscow’s top daily 
newspapers. 

Ranked as the nation’s 13th 
most popular leader, Gen 
Lebed drew more support than 
better known hard-liners such 
as Mr Vladimir Zhirinovsky, 
the neo-fascist politician, ahjl 
out-scored Mr Yegor Gaidar! 
the standard bearer of market 
reforms. 

But while, in the public eye. 
Gen Lebed appears to be rap- 
idly growing into a leader of 
national stature, be is careful 
not to express open political 
ambitions. 

“In these times of troubles, I 
cannot rule out anything,” is 
Gen Lebed’s careful answer to 
the question of whether he will 
one day he the leader of all 
Russia. “But I will do anything 
my country requires. I have 
served my country in foreign 
wars and civil wars. Whatever 
my country needs, I am not 
afraid to do.” 

On the topic of what it is 
that his country needs, Gen 
Lebed is more forthcoming. 
“What’s wrong with a military 
dictator?" the general asks, 
recrossing long legs clad in 
camouflage fatigues which 
look freshly pressed even late 
in the evening and enormous 
black boots gleaming with pol- 
ish. “In all of its history, Rus- 
sia has prospered under the 
strictest control Consider Ivan 
the Terrible, Peter the Great, 
Catherine the Great or Stalin.” 

Gen Lebed’s critique of Rus- 
sian democracy is delivered 
with the calm assurance of a 
battle-tested officer and the 
smooth charm of a gentleman. 


Bp 
• *?*•*»:» 



Genera] Alexander Lebed, commander of Russia’s 14th army 


“What our country is trying to 
do now is completely impossi- 
ble,” Gen Lebed explains, offer- 
ing imported Danish biscuits 
and rising to prepare coffee. 
His intense gaze helps to 
explain his soldiere’ slavish 
devotion, but does not detract 
from the toughness or his mes- 
sage. "Our leaders have said, 
Tor centuries our state has 
been totalitarian but starting 


this minute we will be a demo- 
cratic state’. This is just not 
possible After aD, we are still 
Soviet people." 

Gen Lebed is also convinced 
- and many sophisticated polit- 
ical observers would say he is 
right - that the democratic 
order Russian leaders have 
struggled to build at such great 
cost is a matter of absolute 
indifference to most Russians: 


"Most Russians don’t care 
whether they are ruled by fas- 
cists, or communists or even 
Martians as long as they are 
able to buy six kinds of sau- 
sage in the stores and lots of 
cheap vodka.” 

Although Gen Lebed shares 
some of the hard-liners’ preoc- 
cupation with Russia's lost 
power - he speaks sadly of 
Russia, with "our proud his- 
tory”, now reduced to blindly 
following recipes “dr eamed tty 
in Arkansas” - he is no neo-im- 
periahsL 

He says he refused an offer 
to become the minister of 
defence in the Central Asian 
republic of Tajikistan because 
“why should I help one group 
of Tajiks kill another?” 

This sober realisation that 
Russia's greatness cannot be 
recaptured through force of 
arms in foreign countries is 
only one way in which Gen 
Lebed differs from Russia’s 
civilian hard-liners, whom he 
dismisses as “dangerous popu- 
list fanatics". 

As a decorated Afghan vet- 
eran he embodies a military 
order leaders like Mr Zhirin- 
ovsky can only describe and as i 
a central figure in the defeat of 
the 1991 hard-line coup, demo- 
cratic politicians cannot accuse 
Gen Lebed of undue sympathy 
for the old , vanquished regime. 

But, for all his insistence 
that order and rfiwipii^p are 
the keys to Russia’s renewal 
and his coy disavowal of any 
overt political role. Gen Lebed 
has a rather idiosyncratic 
notion of the command struc- 
ture to which he is 
subordinate. 

“I have never served Tars, 
or Commissars or Presidents,” 
Gen Lebed says. “They are 
mortal men and they come and 
go. I serve only the Russian 
state, and the Russian people, 
which are eternaL” 


Russian troops on full alert over Caucasus fighting 


By Our Foreign Staff and agencies 

Porces loyal to Mr Dzhokhar 
Dudayev, president of the break-away 
Chechen republic, yesterday seized a 
rebel strong-bold. Mr Dudayev’s vic- 
tory comes in the wake of stepped-up 
Russian efforts to unseat the separat- 
ist leader by backing pro-Russian 
opposition forces. 

The escalation tn the fighting uj 


Chechnya prompted General Pavel 
Grachev, the Russian defence minis- 
ter, to put Russian military forces in 
neighbouring regions on “full combat 
alert” in an effort to prevent the 
Chechen conflict from spreading to 
other parts of the volatile Caucasus. 

According to the Russian news 
agency Interfax, Mr Grachev also 
said that military check-points would 
be established on roads leading to 


Chechnya and Russia would tighten 
Its control over Chechen air-space to 
prevent Chechen aircraft from 
harassing targets to Russia. 

But despite the tightening of the 
Rnsrian military net around the bor- 
ders of the break-away republic, Mr 
Dudayev’s seizure of the town of 
Argun early yesterday morning rep- 
resents an important internal vic- 
tory. Twenty kilometres east of Groz- 


ny!, the Chechen capital, Argun was 
the strong-hold of Mr Ruslan Labaza- 
nov, a 26-year-old rebel warlord who 
controlled one of the two leading fac- 
tions opposed to Mr Dudayev and 
who has vowed a blood-feud against 
the president 

Mr Dudayev’s victory, in a battle 
which Russian reports said claimed 
dozens of lives, underscores the dan- 
gers attendant upon Russia’s contro- 


versial policy towards the break- 
away Caucasus republic. Chechnya’s 
assertion of independence three years 
ago has set a precedent which Russia 
fears other regions might be tempted 
to follow. Mr Dudayev's defiance of 
Moscow has also been perceived as a 
humiliation to which President Boris 
Yeltsin, keen not be be outflanked by 
right-wing politicians, has felt 
obliged to respond. 


Greeks take the route to central Asia 

Entrepreneurs are seizing their chance to follow the trail of Alexander the Great, writes Kerin Hope 


O ne short business trip 
was all it took to per- 
suade Mr Pericles 
Tsompos, an Athenian 
importer of bides, that Uzbeki- 
stan was a place where Greek 
entrepreneurs could flourish. 

Mr Tsompos paid $200,000 
(£129^000) to dismantle the con- 
tents of a bankrupt Greek 
match factory and transport it 
by train to Tashkent, where he 
set up a joint venture withthe 
Uzbek Timber and Construc- 
tion Ministry to start produc- 
ing matches. . 

The $6m investment, in 
which Tsompos Holdings ana 
other Greek partners hold a oi 
per cent stake, was designed to 
profit from the collapse of toe 
centrally planned economy m 
the former Soviet Union. 
“Every box at matches sold in 



Uzbekistan used to be imported 
from Moscow, so this was 
clearly an opportunity not to 
be missed.” says Mr Tsompos. 

The risk involved in invest- 
ing In the ex-Soviet republics 
does not seem to deter the 
Greeks- Some Greek business- 
men maintain this is because 
they are used to working in a 
politically volatile environ- 
ment at home, often without 
the help of formal asset evalua- 
tions. bank financing or even 
export guarantees. Mr Tsom- 
pos has also opened a hard cur- 
rency shop in Tashkent’s 
museum of modem art, in part- 
nership with the Culture Min- 
istry- It serves as a showcase 
for manufacturers of Greek 
consumer goods, bringing in 
orders from Uzbek importing 
companies. 


Tsompos Holdings’ latest 
venture was to become the 
Greek representative of 
Uzbekistan Airways, the state 
carrier formed when the Aero- 
flot fleet was divided up among 
the former Soviet republics. 
The Athens-Tashkent flight 
every two weeks carries both 
businessmen and cargo. 


M r Tsompos now plans 
to offer package 

tours tO SflTnarfcanri 
and Bokhara in co-operation 
with the Uzbek state tourist 
organisation, “to cater for peo- 
ple wanting to follow the trail 
of Alexander the Great 
through central Asia". 

Other Greek entrepreneurs 
have started to follow Mr 
Tsompos, forming joint ven- 
tures with state-owned proces- 


sors of marble and astrakhan. 
Before long, more secondhand 
machinery should start arriv- 
ing from Greece, as it is time 
to give Uzbekistan’s neglected 
fruit and vegetable processing 
industry a boost 
For Greeks who want to do 
business in central Asia, it 
helps that Alexander Makedon- 
ska is almost as familiar a 
narng as Tamerlane the Great 
Another fa cto r is an influen- 

communtty in Tashkent origi- 
nally refugees wbo fled when 
the communists were defeated 
in Greece’s civil war in the 
19405. “There's no doubt that 
being part of the local heritage 
helps to open doors for Greek 
businessmen," says Mr Yannis 
Tzen, head of OPE, Greece’s 
export promotion board. 


To establish a longer-term 
presence in the ex-Soviet mar- 
ket OPE has opened a busi- 
ness centre in Odessa. It occu- 
pies the building where 200 
years ago the Fihki Etairia. a 
secret society backed by promi- 
nent Greek merchants, plotted 
the liberation of Greece from 
Ottoman rule. 

Greek exports to the former 
Soviet Union amounted to 
last year, against $l24m 
in 1992, while imports rose 
from 5427m to 9513m. Accord- 
ing to the Greek Exporters’ 
Association, food and con- 
sumer goods account for most 
of the' rising trend in exports. 

Greek trade with Ukraine 
was valued at 960m in 1993, 
handled mostly through 
Odessa, where Greek ship- 
owners and traders appear set 


on reviving the status they 
held under Catherine the 
Great. Investment is starting 
to follow, again based on 
exports of secondhand machin- 
ery to start up a joint venture. 
In one such partnership. Mr 
Athanasios Daskarolis, owner 
of Delta, a meat-processor 
which recently upgraded its 
plant in southern Greece, has 
joined forces with Tirs, a 
Ukrainian trading company, to 
produce salami near Odessa. 

Mr Daskarolis believes it will 
be three to five years before 
his 40 per cent stake in Deka- 
Urs, the joint venture, starts 
to produce “a real return. But 
it's a good market to get a foot- 
hold in while investors from 
elsewhere in Europe are still 
feeling nervous about the for- 
mer Soviet Union." 



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4 


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NEWS: INTERNATIONAL 


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Singapore caught in media dilemma 

Kieran Cooke on reconciling censorship with the global information network 

O ut-of-work veterans of 
Washington's ill-fated 
“Star Wars" pro- 


O ut-of-work veterans of 
Washington's ill-fated 
“Star Wars" pro- 
gramme should look no fur- 
ther. Singapore needs you. 

Singapore wants to turn 
itself into a global media hub. 
The problem is that Singa- 
pore's leaders remain deeply 
suspicious of outside influ- 
ences. 

“We have to stay special and 
unique," said Mr George Yeo, 
Sin g a p ore's minister for infor- 
mation and the arts, recently. 
“To achieve this, we need a 
kind of semi-permeable mem- 
brane to preserve our own bub- 
ble in Singapore." 

While Singapore does not 
plan literally to wrap itself in a 
cocoon, Mr Yen’s remarks are 
very much a reflection of the 
dil emma the government feels 
it is racing. 

On one hand, Singapore's 
planners see the economic 
I necessity of being plugged into 
the global information net- 
work. Singapore has the tech- 
nology and expertise to be the 
information entrepot of the 
dynamic south-east Asia 
region. Its 2.7m people are 
already among the world's 
most computer-proficient. 

“The future belongs to coun- 
tries whose people make the 
most productive use of infor- 
mation. knowledge and tech- 
nology." says Mr Goh Chok 
Tong, Singapore's prime minis- 
ter. “These are now the key 
factors for economic success, 
not natural resources.” 

But, on the other hand, the 
government is deeply con- 
cerned about losing control 
over information flows within 
Singapore. Satellite ownership 
is not allowed for the general 
public. The local media faith- 
fully reflect government policy. 
The importation of foreign 
newspapers and magazines, 
ranging hum the Far Eastern 
Economic Review to Cosmopol- 
itan, is carefully controlled. 
Even newspapers from neigh- 
bouring Malaysia are not 



Prime Minister Gob’s tough stand may stem from still having to contend with Lee Euan Yew 


allowed to circulate in Singa- 
pore. 

Singapore’s leaders have 
shown no hesitation in taking 
court action, usually involving 
substantial damage suits, 
against foreign media which, 
they feel have impugned their 
integrity. 

But as technology changes, 
censorship becomes ever more 
difficult. Services such as 
Internet, the global informa- 
tion network, can be used not 
only to access research materi- 
als. They can also be used to 
transit newspapers and por- 
nography. 

The government a dmits that 
where technology is concerned, 
it is fighting a losing battle. 
“Censorship is becoming quite 
impossible to enforce at the 
individual level,” says Mi* Yeo. 
“Once digitised, an objection- 
able book, tnagarine or video 
can be sent through the tele- 
communications network. 

“We can inspect magazines, 
books, tapes and discs but we 
cannot possibly screen every 
bit or byte that comes down 
the information highway.” 


Instead, says Mr Yeo, Singa- 
pore needs what he calls an 
imm une system capable of 
fighting off infection from 
within. 

A code of what are seen as 
Asian values, emphasising the 
family and the primary role of 
the male, discipline and above 
all, the needs of society above 
those of the individual, is the 
pill the government wants Sin- 
gaporeans dutifully to swallow 
to counteract foreign viruses. 

“Asian values" was the main 
theme of a national day 
address at the end of last 
month by Prime Minister Goh 
Chok Tong. The maintenance 
of such values is seen as vital 
for Singapore’s continued eco- 
nomic success. “Yon may 
think decline is unimaginable,” 
said Mr Goh. “But societies can 
go wrong very quickly." 

While the Singapore govern- 
ment remains deeply sensitive 
to outside criticism, Mr Goh 
had no hesitation in painting a 
bleak picture for bis audience 
of what he sees as moral decay 
and lawlessness In the 
west, most notably in 


the US and Britain. 

He warned Singaporeans not 
to foil prey to corrosive outside 
mfliiftnrffK, such as welfarism, 
divorce, or children being 
allowed to call their fathers by 
their first names. “We must 

not unthinking l y drift into atti- 
tudes and manners which 
undermine the traditional 
politeness and deference Asian 
children have for their parents 
and elders." 

Mr Goh admi tted that drug 
addiction and juvenile delin- 
quency in Singapore had risen. 
So had divorce, and there were 
single-parent families. Unmarr- 
ied motherhood could not be 
considered a respectable part 
of Singapore society, Mr Goh 
declared. In future, unmarried 
mothers would not be allowed 
to buy government flats direct 
but only on the more expen- 
sive resale market 

There are those who wonder 
what all the hiss is about Sing- 
apore shows few signs of 
descending into anarchy and 
moral mayhem. Its economy 
grew 9.9 per cent last year 
and looks on course for 


similar growth this year. 

Singaporeans enjoy per cap- 
ita incomes higher than in 
New Zealand and only slightly 
behind Australia and Britain. 
More than half the population 
can afford to travel abroad 
each year where they benefit 
from the strength of the Singa- 
pore dollar. “In Perth, Singapo- 
reans are called 'birds','' said 
Mr Goh. “When they are in the 
shops, they go: ‘Cheap 
cheap!’.” 

Analysts say that political 
pressures are part of the rea- 
son for Mr Goh's tough stand. 
On one side, as prime minister 
for the last four years, he has 
to contend with the formidable 
presence of Mr Lee Kuan Yew, 
patriarch of modern Singapore. 
On the other side is Mr Lee’s 
son, Mr Lee Hsien Loong. who 
has made no secret of his will- 
ingness to serve as prime min- 
ister. 

When be came to office, the 
mild-mannered Mr Goh prom- 
ised a more open, consultative 
form of government. But that 
seems to have given way to a 
more hard-headed approach. 
Mr Goh needs to show his cabi- 
net colleagues that he has a 
firm grip, particularly with a 
general election likely to be 
called in the first half of next 
year. 

Mr Goh's comments could 
win votes among the more tra- 
ditionally-minded, Chinese-ed- 
ucated population. 

But some Singaporeans find 
the government’s attitude hard 
to stomach. “It’s the old story 
in Singapore," said a local aca- 
demic. “The government still 
has a siege mentality. It wants 
to open up to media and other 
outside influences Insofar as 
they will benefit the economy. 

“But it still wants to control 
everything, from what we see 
at the theatre to what we read. 
We are the children, it is the 
father figure. Talking about 
Asian values is another way of 
saying:' We know what is good 
for you. Obey us'." 


South African motor industry strike ends 


By Mark Suzman in Johannesburg 

The five-week long strike that has 
paralysed the South African motor 
industry ended yesterday as workers 
agreed to return to factories tomor- 
row.But no formal resolution to the 
wage dispute has been reached, and 
union leaders say discussions will con- 
tinue on the issue. 

The National Union of Metalworkers 
of South Africa, which organised the 
25,000 strikers, said the decision to end 
the stoppage came after consultation 
with the union's branches over the 
weekend. Workers have been demand- 
ing 11 per cent across-the-board wage 
increases while employers have been 


offering 10.5 per cent The strike is 
estimated to have cost between R2bn 
(£360m)-B3ha in lost production. 

The decision follows an announce- 
ment last Friday by Mr Trevor Manuel, 
trade and industry minister, that he 
was scrapping the 15 per emit import 
surcharge on motor vehicles as well as 
cutting tariffs on motor imports from 
115 to 80 per cent 

Numsa reacted furiously to the 
moves, accusing the government of 
deliberately weakening its bargaining 
position with employers. But Mr' Man- 
uel defended the cuts as being in line 
with recommendations made by an 
industry task group that had included 
union representatives, to help bring 


tariffs down to their Gatt-required 
level of 30 per emit by 2003. 

The conclusion of the strike comes 
just ahead of a critical four-day 
national conference for the 1.3m mem- 
ber Congress of South African Trade 
Unions, due to open tomorrow At the 
top of the agenda will be an attempt to 
redefine the federation’s role in the 
post-apartheid era. 

President Nelson Mandela’s African 
National Congress and Cosatu are for- 
mal political allies and worked closely 
together in the run-up to the April elec- 
tions. Since then, widespread indus- 
trial unrest, as well as the govern- 
ment’s tongh stance on tariff 
reduction, has started to sour the rela- 


tionship and Cosatu is now keen to 
reaffirm its links with the party. 

Nevertheless, the gove rn ment is wor- 
ried that the recent strike wave has 
been deterring much-needed foreign 
investment as well as hampering eco- 
nomic growth and has called for 
restraint from the anions. Cosatu's 
general secretary, Mr Sam Shilowa. has 
said publicly that he feels legitimate 
industrial action has no effect on inter- 
national investor sentiment 

Mr Shilowa is reported to have come 
under criticism from federation mem- 
bers for lacking the strategic vision to 
carve a new role for Cosatu in the 
post-Apartheid era, and his leadership 
may be challenged at the conference. 


Longing for an economic miracle 


A s hundreds of thou- 
sands of South Afri- 
cans gathered a few 
days ago to give thanks for the 
political miracle that led to the 
establishment of their coun- 
try’s first democratic govern- 
ment, that same government 
was coming to realise how dif- 
ficult achieving a similar eco- 
nomic miracle was going to be. 

While Peace Day marchers 
nationwide sang the country's 
two national anthems, the 
release of worse- than-expected 
inflation figures caused bond 
yields to soar over 17 per cent, 
effectively ending the possibil- 
ity of any further interest rate 
cuts. 

In response, economists 
downgraded growth estimates 
for the year to between 2-28 
per cent from the previously- 
expected 34 per cent 
All this puts further pressure 
on President Nelson Mandela 
and his African National Con- 
gress-led goverment. With 
nearly half the potential work- 
force unemployed and 7m peo- 
ple out of 40m without proper 
homes, they desperately want 
to provide tangible evidence of 
the fall of apartheid to their 
constituents in the form of jobs 
and housing. But they are con- 
strained by the need to main- 
tain economic credibility in the 
eyes of the global financial 
community so as to attract 
new foreign loans and invest- 
ment to the country. 

In his June budget, Mr Derek 
Keys, outgoing finance minis- 
ter, restricted the allocation to 
the government's centrepiece 
Reconstruction and Develop- 
ment Programme to only 
R2jbn (£696jnl, to keep to his 
commitment of lowering the 
budget deficit Despite this, as 
signalled by last week's col- 
lapse in bonds, the markets 
still believe a degree of over- 
spending is inevitable, given 
the wide range of demands on 
state resources, particularly as 
the new network of local and 
regional governments is estab- 
lished during the year. 

But. damaging though this 
might be, the biggest problems 
faced by tbe South African 


It will be a hard climb, but many remain 
sure of the future, Mark Suzman writes 


South Africa 

Annual % change in CPI 
20 

Inflation 



1990=1 00 

102 

Employment 
fltan-agricjJttn* 
100 / 


98 /- 


As % Of GDP 

25 ; 

Government speneftng 


confidence is at a five-year 
high. Exports, in both commod- 
ities and manufactured goods, 
have been expanding steadily. 
Foreign reserves remain at 
pitifully low levels, barely able 
to cover five weeks' imparts, 
but Indications are that the 
huge capital outflows which 
bled South Africa over the past 
few years have now largely 



1970 93 

Scubk SouSi AMeaa Rnarra Bank 

economy are structural and 
not susceptible to short-term 
monetary or fiscal panaceas. A 
legacy of economic problems 
from the previous government 
(at least before Mr Keys was 
appointed two years ago) has 
left the new administration 
with a very limited set of pol- 
icy options. 

During the 19S0s, growth 
stagnated but government 


thin is through real cuts in gov- 
ernment spending and a will- 
ingness to jettison controver- 
sial policies such as the 
maintenance of high tariffs for 
a largely uncompetitive manu- 
facturing industry. 

In delivering his annual 
report last month, Mr Chris 
Stals. Reserve Bank Governor, 
pulled no punches in driving 
home this point. He empha- 


The biggest problems faced by 
the economy are structural and 
not susceptible to short-term 
monetary or fiscal panaceas 


spending rose relentlessly. In 
consequence, the budget deficit 
rose from next to nothing to 
more than 8 per cent of Gross 
Domestic Product in 1992. 
Although that figure has now 
been brought below 7 per cent 
and is budgeted at 6.6 per cent 
for 1994-5, government spend- 
ing still takes up an exorbitant 
21 per cent of GDP, well above 
international norms. 

Given the high personal tax 
levels already in place, the 
only viable way of reducing 


sised tbat unless deep-seated 
problems such as excessive 
protectionism, high labour 
costs, widespread labour 
unrest and persistently high 
infiationary expectations were 
tackled immediately, the lon- 
ger-term growth potential of 
the economy would be seri- 
ously damaged. 

Formidable though these 
obstacles might be, the outlook 
is not one of unrelieved gloom. 
Inflation may be on the rise 
again, but even its current 


per cent is well down on the 
15-16 per cent reached only a 
few yeans ago; overall inflation 
for the year is expected to 
remain in tnngte digits. 

While the wave of labour 
unrest may be damag in g , total 
strike action remains below 
levels seen as recently as 199L 
Many analysts believe this 
year's disputes are artificially 
exacerbated by the heightened 
expectations resulting from the 
election and the inexperience 
of a new wave of labour lead- 
ers. Next year's wage talks are 
expected to be markedly cal- 
mer. 

Even more encouragingly, 
the government is publicly 
committed to a strategy of pur- 
suing export-led growth and 
reducing protection for indus- 
try in line with the new Gatt 
arrangements. 

In recent weeks, Mr Trevor 
Manuel, trade and industry 
minister, hag warned manufac- 
turers the goverment intends 
to reduce protection even 
below Gatt-required levels in 
some over-protected industries 
such as textiles and the motor 
industry. 

Fixed investment and private 
savings have both turned 
around after years of decline 
and are rising, while business 


With total foreign currency- 
denominated debt at only 
$16.7bn (Ell.lbn) and interest 
payments accounting for just 7 
per cent of exports in 1993. 
South Africa has some scope 
for new borrowing. 

While foreign investment 
has so far been largely 
restricted to shorter-term 
investments in the bond and 
equity markets, deterred in 
part by the maintenance of the 
country’s two-tier currency, 
many foreigners remain 
remarkably sanguine about the 
country’s prospects. 

"I've been very impressed 
with the sophistication of the 
infrastructure and the quality 
of the people," notes Mr Steve 
Walsh, chief executive officer 
of the US-based group Pills- 
bury International, which has 
just embarked on a Ri52m 
joint venture with the South 
African food-processor Food- 
corp. 

“I thi nk this country has a 
lot or potential." he says. 

The problems are immense, 
and the country is far from 
being able to achieve the Asian 
“tiger-type growth rates it so 
desperately desires, but the 
Fact remains that South 
Africa's overall economic out- 
look is better than for 
decades. 

As a report on the country to 
be released this week by the 
Onion Bank of Switzerland 
concludes: “South Africa has 
the main ingredients required 
to place the country firmly on 
the high road to development." 
It will be a long hard climb 
but South Africans will be hop^ 
ing that soon, national celebra- 
tions of the country’s economic 
success wifl be held to comple- 
ment this year's political ones. 


End of 
oil strike 
enhances 
Abacha’s 
position 

By Paul Adame in Lagoa 

The collapse of Nigeria's 
two-month oil industry strike, 
aimed at forcing an end to mili- 
tary rule has left Gen Sani 
Abacha's regime in a strong 
position and the civilian oppo- 
sition in disarray. It has also 
left the political and economic 
problems underlying the 
recent crisis unsolved. 

When pro-democracy groups 
namp together in June to chal- 
lenge the authority of Gen 
Abacha, and secure the release 
of Chief Moshood Abiola, 
widely regarded as the winner 
of last year's annulled presi- 
dential election, his regime had 
yet to be tested. 

Now Nigerians can be in lit- 
tle doubt that their head of 
state responds to opposition 
with force and is offering a 
handover to civilian rule on 
his terms and in his own 
time. 

Nupeng, the blue collar oil 
workers union, and Pengassan, 
the senior staff association, 
saw themselves as the van- 
guard of a movement to 
restore civilian rule, but soon 
found themselves out on a 
limb. 

Damaging though it was, the 
oil strike was a long-term 
weapon in a rampnig n which 
had to be won quickly. Niger- 
ian workers lack savings to 
sustain a long strike and there 
was a lack of political leader 
ship to direct a protest capable 
of deposing a regime. 

The strike paralysed fuel dis- 
tribution and the refineries 
and brought the commercial 
capital Lagos almost to a halt 
In the oil fields in the east, 
output of crude oil, Nigeria's 
only big export, dropped 
within a fortnight by 20 per 
cent. 

But essential services such 
as water and electricity sur- 
vived the crisis. Support for 
the strike was slow in coming 
from the Nigeria Labour Con- 
gress (NLC), which represents 
all the main unions. The gen- 
eral strike they called in July 
lasted less than two days. 

“I feel let down by the NLC 
leaders.They made a lot of 
noise but came up with noth- 
ing,” said Mr Milton Dabibi, 
general secretary of Pengassan 
in Lagos yesterday after agree- 
ing a communique with some 
of his branch leaders authori- 
sing a return to work today. 

Mr Dabibi admitted that tbe 
mass of the unions' members 
bad had enough of the strike 
and that the government's tac- 
tics, which he described as 
“brute force", had disrupted 
the leadership, with four 
branch leaders in the state- 
owned refineries and fuel dis- 
tribution network under arrest 
for trying to carry on the 
strike. 

The army benefited as it 
took over distribution of scarce 
supplies of fuel, but in the big 
cities ordinary people suffered 
from the lack of transport and 
the closure of factories and 

hanltR 

Divisions within the military 
over whether to appease or 
suppress the threat delayed tbe 
government's response until 
mid-August when Gen Abacha 
barred the national executives 
of Nupeng, Pengassan and the 
NLC from their posts, closed 
down the leading independent 
daily newspaper and arrested 
Nupeng’s general secretary Mr 
Frank Kokori and several lead- 
ers of the National Democratic 
Coalition (Nadeco), which was 
the focus of civ ilian opposition 
in the south- west 
A wave of attacks on the 
homes of prominent govern- 
ment critics in Lagos have 
been blamed by lawyers on the 
government. Although the alle- 
gations are unproven, the 
attacks increased the climate 
of fear. 

The government now has its 
own administrators in the 
unions and a partial lifting of 
the ban on political activity 
has allowed the largely anti- 
Abiola delegates at the consti- 
tutional conference in Abuja to 
start creating the nucleus of 
political parties ready for next 
year's polls. A purge at the 
highest levels of the armed 
forces and the public sector 
has placed Abacha loyalists in 
key posts. 

Mr Abiola is still in jail, 
needing hospital treatment 
according to doctors and 
Nadeco has proved to be a 
source of rhetoric but little 
action. By calling the opposi- 
tion's bluff, the government 
will feel more secure than at 
any time since Mr Abiola re- 
launched his claims to the 
presidency. 

But the grievances felt by 
the Yoruha tribe in the 
South-west and the minorities 
in the oil-producing areas 
towards an increasingly rigid 
and northern dominated mili- 
tary regime are as deep as 
ever. 


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FINANCIAL times TUESDAY SEPTEMBER 6 I 994 


05 ' s lrjL 

•? h s 


NEWS: INTERNATIONAL 


Brundtland cuts to heart of Cairo conference 


By Marie Nicholson bi Cairo 


W 


• Mrs Gto 
Harlem Brund- 
tland. Nor- 
way’s prime 

minister, cut to 

the heart of 

controversies 

at the Interna- 
tional Confer* 
ence on Popula- 
tion and Dev- 
elopment during its opening 
yesterday with a plain-speak- 
ing defence of its centrepiece 
text’s position on abortion. 

Mrs Brundtland’s speech, 
which accused some religious 
critics of hypocrisy, drew loud 
applause and a fina l standing 
ovation daring 1 an opening ses- 
sion marked otherwise by con- 
ciliatory and grandiose open- 
ing addresses. 

"I have tried In vain to 
understand how the term 
“reproductive healthcare' can 
possibly be read as promoting 
abortion as a means of family 

p lannin g 

“Rarely if ever have so many 
misrepresentations been used 

to imply a meaning that was 
never there in the first place,” 
Mrs Brundtland declared. 

“Morality becomes hypocrisy 
if it means mothers suffering 
or dying in connection with 
unwanted pregnancies and ille- 
gal abortions and unwanted 





Women of Pakistan’s Jamaat-e-felami protest in Islamabad yesterday against Prime Minister Bhutto’s part in the Cairo conference ap 


children,” _ she added, women's rights as a central 
Ms Benazir Bhutto, Pakis- theme) matte a spirited flefanre 
tan’S prime minister (the Open- of Istomin and famil y values, 
mg's other star female speaker While c laiming the confer- 
to a conference which has ence’s draft text contained 


“serious flaws”, she said the 
world must not see the event 
as “a universal social charter 
seeking to impose adultery, 
abortion [and] sex education”. 


Egypt’s President Hosni 
Mubarak, the conference host, 
Mr Boutros Boutros Gfaali, UN 
secretary-general, and Mr 
Albert Gore. US vice-president. 


called the gathering “one of 
the most important confer- 
ences ever held”. 

Most other speakers reiter* 
ated with little change of 
emphasis the central thrust of 
the gathering, which is to pro- 
vide a consensual global pro- 
gramme to stabilise world pop- 
ulation based on a “holistic” 
developmental approach 
with the education and em- 
powerment of women at its 
core. 

Speakers and delegates made 
energetic efforts to stress the 
high degree of agreement 
among the event's 170 partici- 
pants on the conference docu- 
ment. detailed negotiations on 
which began yesterday and , 
will continue until the confer- 1 
ence closes on September 13. 

Mr Gore said what was 
“truly remarkable” about the 
meeting was “not only the 
unprecedented degree of con- 
sensus about the nature or the 
problem, but the degree of con- 
sensus about the nature of the 
solution”. 

By the end of yesterday, del- 
egates were congratulating 
themselves on having made 
progress to trying to heal riffs 
over the document’s language. 
EU states agreed internally to 
back a proposed amendment 
clarifying the document does 
not promote abortion as a 
means of family p lanning 


A ‘Personal Status Code’ has given women rights not enjoyed elsewhere in the Arab world 

Emancipation helps Tunisia to steady growth 


By Ffencfe GMte 

Amid all the controversy 
surrounding the United 
Nations Population Conference 
to Cairo, die example of one 
small Moslem country, Tuni- 
sia, traditionally tolerant and 
open to western influence, sug- 
gests the emancipation of 
women has been a signifinant 
factor in reducing population 
growth firmi 32 par cent a gen- 
eration ago to 1.9 today. 

Vastly improved standards of 
education and health care are 
other ingredients which 
explain Tunisia’s steady eco- 
nomic performance in recent 
years. Real growth has aver- 
aged 5 per cent a year since 
1389 and inflation is running at 

Uzbek 

prices 

triple 

By Steve LeVine in Tashkent 

Bread and flour prices were 
tripled yesterday in Uzbeki- 
stan, in an apparent attempt to 
accommodate International 
Monetary Fund recommenda- 
tions and finally obtain cur- 
rency support 

President Islam Karimov 
also issued a decree awarding 
direct payments to “virtually 
every adult to compensate for 
the price rise”. 

Taken with other recent pol- 
icy changes to Uzbekistan, the 
announcement implies Mr Kar- 
imov is more willing to risk 
shifting from the safer political 
ground to which he has 
adhered since the 1991 Soviet 
collapse. 

The price rises follow a halt- 
ing of subsidies to state enter- 
prises and a move to a floating 
exchange rate. An IMF mission 
is due in Tashkent starting 
Sept 16, to evaluate the eco- 
nomic impact of the introduc- 
tion of Uzbekistan's currency, 
the som, on July 1 last. 

Until now, the IMF has 
refused to provide support for 
the Uzbekistan som, which 
since its introduction has 
weakened from seven to 18 to 
the dollar. The IMF has 
insisted the government adopt 
structural changes, chiefly 
freeing inter est and currency 
exchange rates. 

Mr Karimov may have trou- 
ble persuading the IMF to 
reverse its position. Econo- 
mists say he has kept indirect 
subsidies to state banks, and 
re taine d the ability of targeted 
enterprise to buy cheap dollars 
for imports or equipment 


a little over 3 per cent Over 
two-thirds of all households 
own or are bnytog a house or 
apartment 

The successful implementa- 
tion of a structural readjust- 
ment programme has. since 
1987. wan plaudits from both 
the International Monetary 
Fund and the World Bank, and 
contributed to the resilience of 
the economy in overcoming 
the impact of the Gulf War 
and, last winter, a severe 
drought The tourist sector is 
attracting Europeans thin 
year and contributing an esti- 
mated $1.2bn (£800m) to 
exports of goods and services. 

Most striking is the coher- 
ence of the “Personal Status 
Code”, promulgated by former 


president Habib Bourgiriba in 
1956, the year Tunisia gained 
independence from France, 
which abolished polygamy and 
established all the laws govern- 
ing family planning- divorce 
and the education of women 
which have given Tunisian 
women rights not enjoyed else- 
where in the Arab world. 

In 1963, free prescriptions of 
the pill and free confidential 
advice on contraception were 
made available to women, 10 
years before France. The pro- 
gramme spread to even the 
smallest village. The birth rate 
has declined from 45 to 244 per 
1.000. mortality from 15 to 6.1 
per 1,000. Illiteracy has been 
cut from 87.7 to 35 per cent, 
though the figure is higher 


among women to poorer areas. 

Women are increasingly visi- 
ble to teaching, medtemg and 
architecture, to factories as 
workers, engineers and own- 
ers. The world of politics 
remains very much a man's 
world, although the profes- 
sional skills and sureness of 
touch which Mrs Neziha Mezh- 
oud. minister in charge of fam- 
ily issues, and a growing num- 
ber of other toghly -articulate 
women bring to their jobs, sug- 
gests it is only a matter of 
years before senior cabinet 
posts will go to women. 

Though leaders of the oppo- 
sition Islamic al Nahda 
(Renaissance) party have said 
they would accept many of Mr 
Bourguiba's policies, women 


are mindful of the often violent 
record of some supporters of 
the party, notably the throw- 
ing of acid to the fac es of uni- 
versity students on the campus 
to Tunis. Many Tunisian 
women are convinced radical 
Islam is not sympathetic to the 
idea of equality between the 
sexes or to their presence in 
public places. 

The laws on divorce and ali- 
mony are remarkably close to 
their European counterparts. 
Indirectly, they allow women a 
far greater share of inheritance 
than the Koran allows. To bol- 
ster these moves, the books of 
people such as Hassan el 
Barm a. the founder of modem 
fundamentalism, have been 
withdrawn from schools and 


public libraries, and references 
to the inferior status of women 
erased from all school books. 

Women today have 25 per 
cent of all jobs in Tunisia, 35 
per emit of all jobs to industry, 
22 per cent in the growing ser- 
vices sector and 40 per cent in 
agriculture, where they man- 
age 10 per cent of all farms. 
Ten per cent of all new compa- 
nies are created by women. 

The cycle of emancipation, 
education, public presence, 
most notably to the workplace, 
success to the professions and 
industry helps to explain why 
a country of such slender natu- 
ral resources has progressed so 
much faster, not least economi- 
cally, than many of its peers to 
the Middle East and Africa. 


Government of Kyrgyzstan resigns 


By Steve LeVine fn Tashkent 
and John Lloyd (n Moscow 

The government erf the central 
Asian state of Kyrgyzstan 
resigned yesterday, apparently 
to strengthen the hand erf the 
pro-reform pre sident , Mr Askar 
Akayev, against the conserva- 
tive-dora mated parliament Mr 
Akayev has ordered new elec- 
tions to tiie parliament before 
the And of the year. 

The sudden open confronta- 
tion between the reformist and 
conservative forces in the 
smallest of the former Soviet 
central Asian republics pits 
communist deputies, many of 
them representing the large 
Russian diaspora, against a 
minority in parliament who 
support the reformist strategy 
which Mr Akayev has strug- 
gled to push through. 


KAZAKHST/V* 






KYRGYZSTAN t*’. 

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The country, one of the poor- 
est to the region, introduced its 
own currency backed by a loan 
from the International Mone- 
tary Fund last year, and has 
reduced its inflation rate to 38 
per emit a month in July. 

However, faster progress 
with reforms and a start to an 
ambitious, but stillborn, priva- 


tisation programme has been 
stymied by a majority in par- 
liament opposing economic 
reform which win threaten the 
further existence of the rickety 
industrial sector reliant on 
continued state subsidies. 

The cabinet issued a resigna- 
tion statement saying that gov- 
ernment had become paralysed 


“because of political games to 
parliament" which “disturb 
social life and create tensions. 
The parliament has been 
unable to take decisions and 
thus interrupted its own work. 
The government considers it 
its duty to say that it supports 
the president's policies”. 

Parliament was due to con- 
vene for a final session of the 
year on September 27, when a 
new barrage of anti-govern- 
ment moves and resolutions 
would have been unleashed. 

Mr Akayev’s announcement 
shifts forward the election date 
from February/March of next 
year to some time in the next 
five months. “There is no way 
now for the opposition to 
organise before an accelerated 
election.” said one western 
analyst said in Bishkek, the 
capitaL 


Mr Akayev stands to con- 
trast to most central Asian 
leaders: he is not a former first 
secretary of the communist 
party, and has fully embraced 
market reform, though he 
lacks a strong industrial base 
and leads a country where nat- 
ural energy and precious min- 
erals are in short supply. 

The som, the Kyrgyz cur- 
rency. has stabilised and the 
IMF has granted a three-year 
loan of $104m <£69m), the only 
one of its kind to central Asia. 
Attacks on the president point 
up the fact that, of the five 
central Asian states of Kazakh- 
stan. Kyrgyzstan. Tajikistan, 
Turkmenistan and Uzbekistan, 
only Kyrgyzstan permits an 
active opposition, a source of 
pride to President Akayev, but 
one which has thrown him on 
the defensive. 


US leads growth in world medicines sales 


By Paul Abrahams 

Sales of US prescription 
medicines have rebounded this 
year in spite of healthcare 
reforms, while Japanese and 
European markets for medi- 
cines mntimied to splutter. 

The US pharmacy drugs mar- 
ket has recovered strongly, ris- 
ing 7 per cent during the first 
six months, compared with 
growth of raly 3 per cent dar- 
ing the same period last year. 
Sales increased from $22.7bn 
<£l4.6ta) to $243bn, according 

to fMB International, specialist 

market research company, 
pharmacy sales in Japan 

rose from $9.4bn to $I0.4bn. but 
rose only 1 per cent in yen 
terms. The sector has been hit 


WORLD PHARMACY DRUG PURCHASES, JANUARY -JUNE 1904 (fat US$m) 



■ tanka 

taan* i 


Fran 

*«*» 

w 

StaBH 

tartaafe 

Satan 

Cardiovascular 

4.228 

1.619 

1,543 

1,487 

866 

446 

360 

154 

157 

Alimentary/Metabofem 

4,238 

2,005 

1.136 

1,010 

670 

520 

312 

185 

124 

Centred Nervous System 

4,355 

525 

683 

691 

353 

356 

217 

88 

124 

AntWnfactivos 

2312 

1,343 

403 

673 

470 

188 

243 

50 

91 

Respiratory 

2,713 

793 

681 

463 

241 

406 

200 

115 

76 

Muscuto-Steletal 

1,141 

1,005 

347 

263 

204 

176 

103 

37 

44 

Blood Agents 

1,160 

852 

249 

365 

215 

43 

109 

35 

32 

Others 

3,889 

2J?43 

1,363 

1,006 

704 

510 

348 

146 

134 

Total 

24.288 

10,385 

6,405 

5,958 

3,723 

2.645 

1,912 

820 

782 

% Change" 

7 

1 

S 

0 

-7 

a 

3 

5 

4 

■Norvhospjtal marteJ only Increase antuctog currencies Sows 9>*S mtemattonal 


by government-inspired price 
cuts introduced in April. 

In Europe’s seven largest 
markets, drugs sales slipped 
from $23bn during the first six 
months last year to fggvhn in 
the same period this year. The 


figures, however, were dis- 
torted by currency devalua- 
tions and fluctuations. In local 
currency terms, sales increased 
2 per cent compared with a 
growth rate of 10 per cent dur- 
ing the first half of 1992 and 1 


per cent to the 1993 period. 

The German market contin- 
ued to recover from last year’s 
steep falls. Sales rose 6 per 
cent compared with an ll per 
cent fall during the same six 
months last year. All therapeu- 


tic categories registered 
growth, apart from asthma 
products, which fell 1 per emit 

An other European markets 
registered decelerating growth 
or even falls to sales. The Ital- 
ian market fell 7 per cent, fol- 
lowing last year's drop of 2 per 
cent The French market was 
static after growth last year of 
7 per cent 

The UK remained Europe’s 
fastest growing market, up 8 
per cent, though this was less 
than last year’s 13 per cent 
growth. The Spanish market 
also decelerated, growing at 3 
per cent compared with U per 
cent Sales in the Netherlands 
rose 5 per cent, (13 per 
centkand those to Belgium 4 
per cent (6 per cent). 


Commerzbank in Xokyo Hinduja brothers press for names to be cleared 

gets bill for extra taxes Speed m & A in B °fors case 

O By Shiraz Sfafiwa in New Defof committed an investment of said group and unrelated to tin 


By Emflto Tera*»no in Tokyo 

Japanese tax authorities have 
sent the Tokyo branch of Com- 
merzbank, Germany’s third 
biggest commercial bank-an 

additional tax bill of Y40m 
fCL58ra), 

The National Tax Agency 
claims the bank failed to report 
income of Yioom to i® 91 “J 
1992. The bank is the nr« 
financial institution to oe 
involved in the tax agency? 
crackdown on Japanese affili- 
ates and branches of foreign 


companies, which have been 
allegedly frying to avoid pay- 
ing local taxes by transferring 
profits from Japan. 

in July, the tax agency 
stepped up efforts to tackle the 
problem. Last month, the Japa- 
nese subsidiary of Asea Brown 
Boveri was ordered to pay 
YLlbn to additional taxes. 

Ciba-Geigy, Roche. Hoechst 
and Coca-Cola, the US bever- 
age company, are also among 
c o m pani es sent penalty tax 
bills. 

Co mmer zbank said a misun- 


derstanding arose over when it 
should have booked costs for 
its computer investment A 
company official said about 60 
per emit of the YlOOm to under- 
reported income derived from 
computer costs; the rest was 
from financial trading, includ- 
ing derivatives. 

Japanese tax authorities 
have started targeting profits 
made on derivatives trading, 
an area where foreign banks 
and brokers have expertise, 
and the main source of income 
at foreign institutions. 


% Shiraz SkSwa In New Detof 

Mr Srichand Hinduja, 
chairm an of the London-based 
Hinduja trading group, yester- 
day called on the I ndian gov- 
ernment to move quickly to 
complete its investigations into 
the 1987 Before scandal. 

to a statement issued in New 
Delhi Mr Htoduja said he and 
his brothers (Gopichand and 
Prakash), accused to the 
Rsl4.5bn (£3QQm) Before gun 
payoff, were keen to dear their 
name. “We have done no 
wrong and that is why we have 


committed an investment of 
mare than RsllObn to core sec- 
tors in India," Mr Htoduja said. 

He urged the Indian govern- 
ment to make specific requests 
for documents from the Swiss 
authorities about the alleged 
payments from Bofors, the 
Swedish gun maker, relating 
specifically to the Indian gun 
deal to 1987, and not “any pay- 
ments from Bofors". 

“It is for this reason we have 
been compelled to be appelants 
in Switzerland to ensure that 
payments relating to such com- 
mercial transactions with the 


said group and unrelated to the 
gun deal does not get mixed up 
with the documents of the gun 
contract to be sent to India.” 

The Indian government’s 
Central Bureau of Investiga- 
tion had made public the 
names of seven persons, 
including the Hinduja 
brothers, and Mr Win Chadha, 
former Bofors agent to India. 
ami Italian businessman Otta- 
vio Quattroochi, whose plea for 
secrecy about their involve- 
ment in the scandal was 
rejected by the Swiss Supreme 
Court last year. 


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BRUSSELS-CAPITAL Region 
Town of Schaerbeek 


CONSULTATION for the 
SALE and the RENOVATION 
of the main building 
in "place DAHL'S’" 


site owner and consultant: 

Societe du Logement de la Region 
Bruxelloise (S.LRB.) 
rue Jourdan, 45*55. 1060 Brussels 
telephone: 32/2 533.19.11 
fax: 32/2.533.19.00 


in the town of Schaerbeek, at "place 
Dailty". with a surface area of = 8.500 sq. 
mtr. on 4 levels 


purposes of the consultation: 
the competitors should propose: 

- a list of the potential activities, 

- the characteristics of a renovation. 
* the requirements of acquisition, 

- the construction schedule. 


prospectuses are available in French and 
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bidding deadline: 

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FINANCIAL TIMES TUESDAY SEPTEMBER 6 1994 


NEWS: THE AMERICAS 


Business leaders anxious as Canadian province approaches crucial election 


Quebec warned over results of secession 


By Be rna rd Simon in Toronto 


A growing chorus of Quebec 
business leaders and other fed- 
eralists has warned of dangers 
to the francophone province's 
economic prospects if the Parti 
Quebecds presses ahead with 
its agenda for a quick drive 
towards independence from 
Canada after the provincial 
election next Monday. 

The warnings reflect the 
PQ's virtually unassailable 
lead in public opinion polls 
over the ruling Liberal party. 


According to the latest polls, 
the PQ is set to win about two- 
thirds of the 125 seats in the 
provincial assembly. 

With a PQ win next week all 
but assured, both separatist 
and federalist forces have 
begun to look to the next stage 
of the struggle, which will 
determine whether, when and 
to what extent Quebec severs 
its ties with the rest of Canada. 

The PQ's election platform 
pledges +ha+ the assembly win 
pass a “solemn declaration” 
immediately after the elec tion. 


so as to affirm Quebec's desire 
to become an independent 
country. 

The party has also promised 
to hold a sovereignty referen- 
dum within a year of faking 
office. In the meantime, it has 
threatened to shun negotia- 
tions between the federal gov- 
ernment and the other nine 
provinces on issues of overlap- 
ping jurisdiction, such as wel- 
fare and healthcare reforms. 

A group of 10 prominent 
Quebec federalists, led by Mr 
Michel Belanger, former chair- 


man of the Montreal-based 
National Bank of Canada, 
warned that the “solemn decla- 
ration” would sow confusion 
among domestic and foreign 
investors about Quebec's 
future. 

Mr Jean Campeau, former 
heed of the Caisse de Ddpdt 
public-sector pension fund and 
one of the PQ’s few supporters 
in tiie top echelons of Montreal 
business, insisted the declara- 
tion would only be “a symbolic 
event”, m«mt to “inform the 
Quebec people of the govern- 


ment’s desire to hold a referen- 
dum to decide whether Quebec 
should be sovereign. n 

With only a few exceptions, 

the business community and 
federal politicians have kept a 
low profile during the election 
cam pai g n'. Most have confined 
their involvement to behind- 
the-scenes advice to Mr Daniel 
Johnson, premier and liberal 
leader. However, they are 
likely to become more outspo- 
ken about the costs of Indepen- 
dence, if and when the referen- 
dum campaign unfolds. 


{federalists have taken heart 
from polls which show that, 
despite the PQ support, a solid 
- even a growing - majority of 
Quebeckers is opposed to out- 
right independence. 

The PQ has been able to cap- 
italise on high unemployment 
and cuts in public services, by 
assuring voters that the main 
issue in the election is good 
government rather than inde- 
pendence. 

Many voters appear keen for 
a change after nine years of 
liberal rule. 


High-flyer takes over at 
Brazil finance ministry 


WTO boost for Salinas 


from Ricupero’s gaffe 


By Angus Foster in S&o Paulo 


Mr Ciro Gomes, Brazil's new 
finance minister, is a high- 
flying politician with very 
close links to Mr Fernando 
Henrique Cardoso, government 
candidate and front-runner for 
the presidential election in 
October. 

The new minister is best 
known for his efficient and 
honest government of Cearti, a 
small state in the Brazilian 
north-east a region more often 
associated with bad govern- 
ment and corruption. Now 37, 
he represents a new crop of 
Brazilian politicians who 
remain populist and aware of 
the importance of the media, 
but who are less nationalist 
than past generations. 

Mr Gomes was bom in Sao 
Paulo but grew up in Ceard, 
where several family members 
have held political office. He 


practised law before switching 
to politics. 

In 1988, he was elected 
mayor of Fortaleza, the Ceard 
capital, and emerged as a prin- 
cipal follower of Mr Tasso 
Jereissati. The latter was 
elected state governor in 1987, 
modernised its government 
and balanced its budget 

Mr Gomes succeeded as gov- 
ernor in 1990. and continued 
his policies of controlling pub- 
lic spending and improving 
government efficiency- This 
has led to a wave of foreign 
investment in Ceard and its 
economic growth has outstrip- 
ped that ctf all Brazil by a fac- 
tor of five in the last seven 
years. However, opponents 
argue that it has taken too 
long for the benefits of growth 
to reach the poor. 

The new minister has also 

won plaudits, and criticism, for 
his skilful handling of Hip Bra- 


zilian and inlamaHnnal media. 
He is a well-known figure in 
Brazil, despite the relative 
obscurity of his state. 

His media presence will help 
him continue the work of his 
predecessor at the finance min- 
istry, Mr Rubens Ricupero, 
whose work of explaining Bra- 
zil's new Real currency to the 
public, as well as fighting 
industrial groups wanting to 
raise prices. He is likely to be 
weakened, however, by his 
linim to Mr Cardoso. Other can- 
didates are unhappy that one 
of the presidential front-run- 
ner’s closest allies has been 
appointed finance minis ter so 

close to the elections. 

Mr Jereissati is well ahead in 
opinion polls to secure a 
second term as governor of 
Ceard. Both men are key 
members of the game political 
party as Mr Cardoso, the social 
democratic PSDB. 


The latest Brazilian political 

scandal hag ni mngiy increased 

the chances that President 
Carlos Sailnag de Gortari of 
Mexico will become head of 
the new World Trade Organi- 
sation, diplomats and analysts 
said yesterday, Reuter reports 
from Geneva. 

Mr Rubens Ricupero, who 
resigned as Brazil’s economy 
minister at the weekend, was 
widely seen as the main rival 
to Mr Saitnag for leadership of 
the WTO, due to come Into 
being next year under the 
world trade accord signed in 
April. 

“I cannot see Ricupero 
remaining seriously in the 
race after this affair ," said one 
trade envoy, whose country 
had favoured the Brazilian, a 
widely-respected former 
ambassador to the General 
Agreement on Tariffs and 
Trade. 




Salinas: Front-runner 


An experienced Gatt- 
watcher said Mr Ricupero’s 
admission that he hid bad 
financial figures so as to help 
the Brazilian presidential elec- 


tion cam paign of his ministe- 
rial predecessor, Mr Fernando 
Henrique Cardoso, “must spoil 
his chances for the WTO”. 

Mr who already has 

the implicit backing or the US 
and many Latin American gov- 
ernments to become the first 
head of a world trade body 
from a developing country, 
was already viewed as the 
front-runner for the post 

Many trade officials and dip- 
lomats say that his record as a 
president who put aside pro- 
tectionist policies and liberal- 
ised the Mexican economy 
would provide added political 
weight to the fledgling WTO. 

The European Union Is 
expected to endorse the candi- 
dature of Mr Rena to Ruggiero, 
an Italian former trade minis- 
ter, although there is little 
sign that he has much support 
among other countries in the 
125-member Gatt 


Talks on peace 
in Mexico to 
start this week 


Barbados votes in early election 


By Canute James 
in Kings ton 


Talks aimed at reopening 
peace negotiations between the 
Mexican government and 
armed rebels in the south- 
eastern state of Chiapas will 
start this week, after a week- 
end of protests there, writes 
Ted Bardacke in Mexico City. 

Bishop Samuel Ruiz, a local 
mediator in the crisis, 
announced a series of “urgent 
meetings” after about 20,000 
indigenous peasants had 
blocked all roads in and out of 
Chiapas at the weekend and 
demonstrated in at least 40 
towns. Officials warned of a 
possible resumption of hostili- 
ties in the state, where Zapa- 
tista left-wing guerrillas began 
an uprising on January 1. 

Demonstrators are now seek- 
ing to prevent Mr Eduardo 
Robledo of the ruling Institu- 
tional Revolutionary Party 
from taking office as governor, 
after bis election on August 21. 
They allege fraud and are 
demanding that Mr Amado 
Avendafio or the opposition 
Party of Democratic Revolu- 
tion, who was openly sup- 
ported by the rebels, be 
declared victor. 


Bishop Ruiz said that a “clar- 
ification” of electoral irregular- 
ities, as well as a new round of 
peace talks, was the key to any 
permanent settlement in the 
state. Mr Robledo “is going to 
have very serums problems," 
the bishop told the newspaper 
Reforma. 

Mr Robledo was a top aide to 
Mr Absaldn Castellanos, the 
former governor of Chiapas 
who was kidnapped by the reb- 
els at the beginning of fighting 
in January, then released after 
a ceasefire. 

Mr Javier Moreno, the acting 
governor, said there were 
“ominous signs which 
announce possible confronta- 
tions.” 

He is facing disquiet, not 
only from the protesters but 
also from land-owners who 
have accused the state govern- 
ment of turning a bund eye to 
land occupations by rebels and 
their civilian supporters. 

“1 hope that statements 
which contain a high degree of 
radicalism do not turn into 
reality," Mr Moreno said. He 
denied the existence of any 
new armed groups in the state. 


Barbadians go to the polls 
today in an early election for a 
new government for the Carib- 
bean island.Latest opinion 
polls put Mr Owen Arthur's 
main opposition Barbados 
Labour party in the lead. 

The election, befog held 15 
months before it is constitu- 
tionally due! was called by Mr 
Erskine Sandiford, the outgo- 
ing prime minister, after he 
lost a no-confidence vote in 
parliament when rebellious 
cabinet members, critical of his 
leadership, voted with the 
opposition. 


Mr Sandiford, who is a candi- 
date In the election, has been 
replaced as leader of the Demo- 
cratic Labour party by Mr 
David Thompson, a 32-year-old 
lawyer who is the island's 

frnanrp minis ter. 

The opinion polls give the 
BLP 32 per cent of popular sup- 
port, with 21 per cent going to 
thp incumbent DLP and 9 per 
cent to the minority opposition 
National Democratic party, 
which is led by Mr Richie 
Haynes. The pollsters warn, 
however, that the outcome of 
the election could be deter- 
mined by the 38 per emit of 
voters who were undecided up 
to last weekend. 


Reducing the island’s 22 per 
iynt unemployment rate, main- 
taining the stability of the cur- 
rency and ex panding thp busi- 
ness sector are the issues 
which have dominated the 


campaign. 

Tfo DLP has promised mea- 
sures to cut unemployment by 
5 percentage points ova* the 
next 18 months, followed by 4 
points the following year, and 
3 the next The Jobs are expec- 
ted to come from proposed tax 
cuts and from new investments 
in hotels, construction and 
expansion of the information 
processing sector. 

The development of small 
businesses through a range of 


incentives has been proposed 
by the opposition BLP as one 
means of reducing unemploy- 
ment 

It says that if elected, it will 
transform the Island’s econ- 
omy, which is presently based 
on tourism and cane sugar pro- 
duction, into one based on a 
range of services for foreign 
markets. 

The three parties contesting 
the election have said they will 
resist pressure from interna- 
tional financial institutions to 
devalue the Barbados dollar. 
The currency, whose parity is 
fixed by the government, has 
been under pressure intermit- 
tently over the past four years. 


Caribbean countries earn. US favour 


By Canute Janes in K in g s ton 


Caribbean countries willing to provide 
“safe havens" for refugees from Cuba and 
Haiti will be treated “favourably” by the 
US, but no Caribbean government is befog 
pressed into accepting the refugees, 
according to a US envoy to the region. 

“It is obviously true that any country 
which helps by taking the boat people that 
our ships are picking up at sea is doing us 
a favour, and it’s obviously true that any 
country that helps us out in that regard 
and helps these poor people . . . would be 
doing a humanitarian service," said Mr 
George Jones, US ambassador to Guyana. 


“Would that be favourably looked upon in 
Washington? Of course it would be." 

Several opposition parties in toe region 
have suggested that governments are 
bong pressed by Washington into accept- 
ing boatpeople, and into providing troops 
as part of a planned US and allied invasion 
of Haiti. Mr Jones described these sugges- 
tions as “absolutely" untrue. 

Several countries have agreed to accept 
varying numbers of Haitians, and have 
been asked by the US government to 
accept Cuban refugees. Dominica, St 
jjrria, Surinam, and the Turks Caicos 
Islands, a British possession, have agreed 
to accept th o usan d s. 


Several Caribbean countries also agreed 
last week to provide about 300 soldiers for 
a noncombat role in a likely US-led inva- 
sion of Haiti to remove that country's mili- 
tary rulers and reinstate the exiled presi- 
dent, Father Jean Betrand Aristide. 

Mr Ralph Maraj, Trinidad and Tobago's 
foreign minister, said there has been “no 
arm-twisting at all”. Dame Eugenia 
Charles, prime minister of Dominica, said 
that, while her government was willing to 
grant "safe haven” to Haitian refugees, it 
bad not agreed to accept any Cubans. 

The administration in the Cayman 
Islands, a British dependency, says It Is in 
danger of befog overwhelmed by refugees. 


& 4 * 






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FINANCIAL TIMES TUESDAY SEFFEMBER 6 »M 


WORLD TRADE 


Aviation correspondent Paul Betts on projects announced at Farnborough Air Show 


EC and SADC 


Airbus welcomes chance for wider role 


C omme rc ia l Jet aircra ft bntans ' . 

% of total $walue . * '■' 



ScuctcAMua . 


T he decision to form a 
military subsidiary for 
the European Airbus 
commercial aircraft consor- 
tium could speed up the trans- 
formation of Airbus into the 
Boeing of Europe. 

The move, announced yester- 
day at the Farnborough Air 
Show, is designed to integrate 
the European future large mili- 
tary transport aircraft pro- 
gramme CfT*A) into the suc- 
cessful Airbus commercial 
aircraft manufacturing and 
development system. 

This integration would boost 
the FLA’s chances in its com- 
petition against Lockheed of 
the US and its new generation 
Hercules transport aircraft. 

A decision is also expected to 
have broader implications for 
the restructuring and consoli- 
dation of the European aero- 
space industry. 

Airbus would gain access to 
the military market to match 
its bigger rival Boeing, whose 
defence operations account for 
around 20 per cent of its 


annual turnover. ‘There is no 
better framework for the new 
military transport aircraft in 
Europe than Airbus,” said Mr 
Louis Gallois. chai r m an of 
Aerospatiale, the French com- 
pany with a 37.9 per cent stake 
in Airbus. 

The creation of the military 
subsidiary for Airbus repre- 


sented a “tremendous nfumna 
and challenge” for Airbus, he 
added. Although Airbus has 
secured 30 per cent of the 
world's civil aircraft market, it 
is coming under increasing 
pressure from Boeing, which 
yesterday announced further 
moves to improve productivity 
and customer services. 


“A challenge for Europe and 
Airbus Is t o beco me every day 
more competitive versus Boe- 
ing,” said Mr Gallois. The inte- 
gration of the FLA project 
within the Airbus st r u c tu re 
was one important step. 

Apart from broadening Air- 
bus activities hitn the military 
sector, the proposal could also 
form the framework for 
expanding Airbus activities 
into other new commercial air- 
craft sectors. Moreover, it is 
positive news for new collabo- 
rative ventures with other 
international partners in pro- 
grammes r ang ing fWitn smaller 
turbo-prop and regional air- 
craft to the development of a 
new generation of 600 to 800 
seat Jumbo jets. 

The new Airbus military 
subsidiary would enable other 
European companies currently 
not part of the Airbus consor- 
tium to participate in the Euro- 
pean aircraft group. At pres- 
ent, Airbus partners include 
Aferospatiale of France, Deut- 
sche Aerospace, British Aero- 


space and Casa of Spain. 

The new military subsidiary 
would also involve the partici- 
pation of Alenia erf Italy ftnH 
the other associate partners in 
the FLA military transport 
project, including Belgian, Por- 
tuguese and Turkish aerospace 
companies which are not Air- 
bus shareholders. 

Although Airbus partners 
are still in discussion with Boe- 
ing over collaborating on the 
possible joint development of a 
new super Jumbo. Airbus is 
this m onth also due to start 
marketing its own A3XX 600 to 
800 sealer Jumbo aircraft pro- 
jects. This programme could 
involve a number of partners 
outside the consortium, and 
senior Airbus officials 
suggested these could be 
grouped into a separate Airbus 
subsidiary, similar to the mili- 
tary subsidiary Airbus is pro- 
posing for the FLA. 

At the same time, other sub- 
sidiaries could be set up to 
integrate the European 
regional turbo-prop and jet 


Boeing launches 
big 737 version 
on back of orders 

Boeing, the world's largest 



TanyAndmm 

Inside the belly of the beast: the view from a US transport aircraft at the Farnborough air show 


Westland to bid for UK contract 


manufacturer of civil aircraft, 
yesterday Launched a new ver- 
sion of its 737 twin-engine nar- 
row body airliner family after 
securing commitments from 
four airlines, writes Paul Betts. 

The 737-800. launched at the 
Farnborough Air Show, is the 
largest member of the new gen- 
eration of Boeing 737 aircraft 
Mr Ron Woodard, president of 
Boeing's commercial aircraft 
operations, said four undis- 
closed customers had commit- 
ted themselves to order more 
than 40 of the airliners. 

The new 737-800S will seat 
164 to 189 passengers and com- 
plement the new 737-700, which 
seats around 144 passengers. 
South West Air lines of the US 
and Maersk Air of Denmark 
have already placed launch 
orders for the 737-700. 

Mr Woodard said commit- 
ments for the 737-800 and 
737-700 were worth around 
SZbn. 

Boeing also confirmed it is 
planning to launch a new 
smaller version of the 737, seat- 
ing more than 100 passengers, 
as soon as it has secured suffi- 
cient initial commitment from 
airline customers. 

The group is also studying 
the development of a smaller 
SO to 100 seat regional jet in 
collaboration with an Asian 
partner. The company is In 
active discussions with China 
and Japan over this project 
Boeing indicated it is prepared 
to he a minority partner in a 
regional jet project with Asian 
partners, while maintaining 


overall leadership on the tech- 
nology of the aircraft, which 
was likely to draw heavily on 
the 737 airline family. 

Boeing also announced lb in- 
firm orders for Boeing 767- 
300ER jetliners - valued at 
$384m - that will be leased to 
ELM Royal Dutch Airlines by 
International Lease Finance 
Corporation. 

ELM Royal Dutch Airlines is 
rationalising its aircraft fleet 
by replacing ten European Air- 
bus A310 wide body airliners 
with US Boeing 707-300 air- 
craft. It will lease seven Boeing 
767 aircraft. 

The decision is a disappoint- 
ment for Airbus, and reflects a 
trend among international air- 
lines to rationalise their fleets 
to reduce costs and improve 
efficiencies. 

• Boeing also announced it 
was starting next-day ship- 
ment on available routine 
spare parts orders, in a move It 
said would potentially save 
customers millions of dollars. 

Mr Woodard said more than 
400,000 different parts would be 
available “ready for shipment 
the next day”, or 30 times fas- 
ter than tha industry standard, 
through its Spare Parts Distri- 
bution Center in Seattle. 

Next-day shipment will be 
phased in at other spare parts 
centres in Altanta, Brussels, 
Singapore. London and. soon, 
in a new site in Beijing. 

Aircraft on ground orders, 
the most urgent category of 
spares, are now ready for ship- 
ment within two hours of the 
receipt of orders. 


By Bernard Gray 

Westland, the UK helicopter 
maker, has formed a team to 
bid for the £2bn (£Ubn) con- 
tract for 91 attack helicopters 
for the British Army. 

The group, called Team 
Apache, brings together 
McDonnell Douglas, Martin 
Marietta and Westinehouse of 
the US with Westland and 
Shuts of Belfast to offer the 
Longbow Apache helicopter for 
the Ministry of Defence 
competition. 

Mr Alan Jones, Westland's 
chief executive, said that if the 
Apache wou the contract £lbn 


of work would come directly to 
UK companies working on the 
programme, with a further 
Elba of contracts placed for 
other work. 

Over 100 UK companies have 
already committed themselves 
to bids for the 300 work pack- 
ages available of the Apache, 
including Rolls-Royce, Lucas, 
Racal Electronics, Smiths 
Industries, Hunting Engineer- 
ing and Royal Ordnance. 

The competition is between 
the Apache, the Bell Cobra 
Venom in co-operation with 
GEC, the BAe-Eurocopter Tiger 
and the Denel-MaishaDs Rocriv- 
alk from South Africa. The 


Apache is thought to be the 
favourite with the army. 

Final bids must be in early 
in the autumn, with a final 
decision expected to be made 
next spring- 

“Westland Apache can be 
delivered to meet the British 
Army's preferred in-service 
date of 1998," said Mr Jones. 
He also stressed that with the 
Apache in service with the US 
army and other forces world- 
wide, the helicopter was a low- 
risk choice. 

The Apache was on show at 
Farnborough, having been 
flown in from the US in a giant 
05 Galaxy transport aircraft. 


manufac turers to a market suf- 
fering from excess capacity 

and many competing projects. 

Mr Jean Pierson, the Airbus 
chief executive, aim confirmed 
yesterday that the Airbus part- 
ners were setting up a separate 
Airbus financial company to 
support the company’s sales 
and marketing drive as well as 
proposing to create a new air- 
craft asset manag ement group 
to monitor the worldwide Air- 
bus fleet and remarket used 
aircraft. 

"The development of an 
active market for used aircraft 
will play an increasingly 
important role for Airbus,” he 
said. 

While considerable political 
and institutional obstacles 
remain to the c on version of the 
existing Airbus stru c ture into 
a public limited company, the 
establishment of a military 
subsidiary and, eventually, 
other subsidiaries, could open 
the way for a transformation of 
the Airbus system to reflect its 
main US rival, Boeing. 

Rolls-Royce 
wins $20m 
order from 
Hungary 

Rolls-Royce has won a 330m 
order from the Hungarian air- 
line Malev for Tay engines to 
power four Fofcfeer 70 passen- 
ger jets. 

Fokkfir amunmnafl that 
three of the aircraft are being 
leased from American Interna- 
tional Group's International 
Lease Finance Corporation and 
the fourth is being bought 
from Fokker. 

Fokker said the order, for 
deUvery between autumn 1995 
and spring 1990, brings total 
orders for the new twin- 
engined aircraft to 33. 

Fokker chairman Mr Ben 
van SrhaiV said at tiie show 
more orders were on the way 
for the plane, which is due to 
be delivered to its first custom- 
ers this October. 

• Anglo-German aero -engine 
maker BMW Rolls-Royce has 
awarded a contract to RoSEC, 
a joint venture between 
Rolls-Royce and Smiths Indus- 
tries, to design and manufac- 
ture the digital engine control 
system for the BR715 engine. It 
said the deal could eventually 
be worth 175m. 

BMW Rolls-Royce is 50 per i 
cent owned by Bayerische . 
Motoran-Werke. 

• Aerospatiale sales for the 
first half of 1994 have fallen 3 
per cent compared with the 
same period in 1993. chairman 
Mr Louis Gallois said. 

Mr Gallois said first half 
orders were weak, particularly 
for helicopters and civil air- 
craft, and Aerospatiale needed 
to continue efforts to cut costs. 


unveil plans 
for closer links 


By Judy Dempsey in Berlin 

The European Union and the 
Southern African Development 
Co mmuni ty (SADC), which 
groups the region's 11 coun- 
tries, will today unveil a pro- 
gramme aimed at increasing 
closer economic cooperation 
between the organisatio n s. 

“The time is ripe for the 
cooperation between both our 
regions to move on to a new 
stage,” said Mr Klaus Klnkftl, 
the German foreign minister. 

He was speaking an behalf of 
EU foreign ministers in Berlin 
at the opening of the first 
hi gh -level ministerial meeting 
with SADC. 

EU and SADC officials said 
they would I dentify a number 
of projects, ranging from tele- 
communications and transport 
to infrastructure and energy, 
which would be supported by 
Brussels. 

However, SADC officials 
stressed they were not in Ber- 
lin to ask for assistance. 

This is not a donor’s confer- 
ence. ft is not a pledging con- 
ference,” said Mr Kaire 
Mbuende, the SADC executive 
secretary. Tt is about SADC 
trying to base its relations 
with the EU on trade, genuine 
cooperation, and investment. 
We want to create institutional 
mechanisms for a partnership 
between the two regions." 

SADC is the successor to the 
Southern African Development 
Co-ordination Conference, 
which was set up in 1980 to 
reduce its members' trade with 
South Africa. It was renamed 
SADC in 1992 and the organisa- 
tion shifted its policies from 
Opposition to South Africa to 
economic development 

The member states are 


Angola, Botswana, Lesotho, 
Malawi, Zimbabwe, Mozambi- 
que, South Africa, Swaziland, 
Tanzania, Namibia and Zam- 
bia. 

Mr Mbuende said Inter-re- 
gional trade amounts to no 
more than 6 per cent of total 
trade. To increase this volume, 
he hoped the SADC would 
agree to a trade promotional 
protocol by January 1995. This 
would facilitate greater mobil- 
ity of capital and investments 
in the region. 

Most of the SADC economies 
maintain complex trade and 
tariff regulations which will 
teiw a long time to dismantle. 
In a ddiHnn . the relative size of 
South Africa - it contributes 
over 75 per cent to a regional 
GDP of around $125bn (£80.6bn) 
- makes other countries ner- 
vous of being flooded with 
cheaper South African goods 
should all restrictions be 
removed. 

Mr Mbuende said SADC has 
to start thinking about har- 
monising its regional travel, 
visa, banking, currency and 
trading relations. 

EU officials yesterday said a 
more integrated and co-ordi- 
nated SADC economic struc- 
ture would help improve trade 
anH investment links with the 
EU. 

The EU already buys more 
than a quarter of S ADC’s 
exports. 

Over the past 20 years, Brus- 
sels has extended Ecu4.6bn 
($5L61bn) in financial and tech- 
nical aid. 

More than EcullOm has 
already been earmarked this 
year for a special programme 
set up to riimnantle the remain- 
ing vestiges of apartheid in 
South Africa. 


Batam chosen for air 
maintenance centre 


By Ktaran Cooke 
in Kuala Lwnpur 

Companies from Singapore and 
Indonesia are setting up an air- 
craft. maintenance centre on 
the Indonesian island of 

Rfltflm. 

Singapore Aerospace, a listed 
company which has tradition- 
ally focused an military main- 
tenance and overhaul, and 
Nusantara Aircraft Industry 
(IPTN), Indonesia’s state- 
owned aircraft manufacturing 
company, will each hold 25 per 
cent in the project A company 
controlled by Mr Liern Sioe 
Liang , Indonesia's richest busi- 
nessman, is also involved in 
Am venture. 

Batam island, which in 
recent years has been devel- 
oped into one of Indonesia’s 
tey industrial zones, Is about 
20 km south of Singapore. 

The project’s backers say the 


initial cost of the Batam facil- 
ity will be $10m. 

The facility will concentrate 
an Indonesia’s fast expanding 
aerospace sector, tmt is likely 
to undertake other regional 
work in the future. 

Singapore's aerospace indus- 
try, faced with rising wage 
costs and constraints on land 
use, has been expanding over- 
seas. Last year Singapore Engi- 
neering, the wholly owned sub- 
sidiary of Singapore Airlines, 
announced it was taking a 10 
per cent stake in a 363m air- 
craft maintenance and repair 
facility being set up in Xiamen 
in China. 

Last month Singapore Aero- 
space and other Singapore 
companies said they would be 
taking a 46 per cent share in 
another aircraft repair centre 
at Shenzhen in southern 

' Ghina. 


NEWS IN BRIEF 

EU starts 
probe into 
microdisk 
prices 

The European Commission 
said it was investigating 
charges that imports of micro- 
disks from the US. Mexico and 
Malaysia were sold at unfairly 
low prices in the European 
Union, Reuter reports from 
Brussels. The inquiry followed 
a complaint by the Committee 
of European Diskette Manufac- 
turers that prices at which 
3.5in microdisks were sold in 
the US and Mexico did not per- 
mit recovery of costs plus a 

reasonable profit margin. 

HK chooses bidders 

Hong Kong has selected 16 con- 
sortia from 15 countries to bid 
for two large contracts, esti- 
mated to be worth around 
HK$8bn ($ibn), for its new air- 
port, Renter reports from 
Bong Kong. One contract is for 
construction of the passenger 
terminal and the other for pas- 
senger terminal building ser- 
vices, including mechanical, 
electrical and hydraulic 
aspects. 

S Korea car exports 

South Korea exported 50,171 
vehicles fast month, up from 
44.701 a year earlier, according 
to the Korea Automobile Man- 
ufacturers’ Association, agen- 
cies report from Seoul 

ICI Taiwan plant 

1C1 will invest 5300m to set up 
a pure terephthalic add (PTA) 
plant in Taiwan in what will 
be one of largest foreign invest- 
ment projects on the island, 
Reuter reports from Taipei. 


VW enters joint venture 
to produce cars in India 

By Shiraz SMhva in New DeBii ■ 


Volkswagen of Germany, the 
leading European carmaker, 
has linked up with Eicher 
Good earth, the Indian motor 
vehicle and tractor manufac- 
turer, to produce and market a 
range of Volkswagen cars for 
the Indian market. 

The two companies 
announced that the new joint 
venture company would invest 
up to RsGbn (3191m) in a manu- 
facturing plant, expected to 
start production in 1997. The 
two partners would start the 
venture and decide the extent 
of equity for each company 
after a feasibility study. 

Volkswagen wQl be compet- 
ing with several of the world's 
leading carmakers to establish 
a presence in India's newly lib- 
eralised passenger car market 
which is estimated to double 
by the year 2000 to between 
450,000 and 500,000 cars. 

These Include General 
Motors. Chrysler, Ford. Peug- 
eot. Daimler-Benz. Volvo. 
Hyundai, Mitsubishi and Dae- 
woo. 

VW will also have to com- 
pete with the Indian Maruti, 
made in collaboration with 
Suzuki Motors of Japan, which 
has a dominant place in the 
Indian market 

Mr Martin Posth, VW board 
member and chairman and 
president of Volkswagen Asia- 
Pacific, said that his company 
considered India one of the 
world's major emerging mar- 
kets. especially since Asia is 
expected to account for most of 
the growth in the global 
vehicle market 

Mr Posth said his company 
chose Eicher as a partner 
because of its widespread dis- 
tribution network and profes- 
sional management 


Volkswagen is to import light 
tracks from Brazil for sale In 
the European market for the 
first time, writes Kevin Done. 

The introduction of the Bra- 
zilian-built 7.5 tonne track, 
the L80, is aimed at dosing a 
gap in the VW range of light 
commercial vehicles caused by 
the termination early last year 
of Us previous light truck: joint 
venture with MAN, the Ger- 
man truck and bus maker. 

The L80 was originally 
developed by Autolatina, 
Volkswagen’s majority-owned 
Brazilian subsidiary, for the 
South American market 

Volkswagen said that it was 
planning to sell around 2,500 


first tractor in I960 and entered 
Into the light commercial 
vehicles sector in the 1980s. 
manufacturing small trucks 
and pick-up vans In collabora- 
tion with Mitsubishi Motor 
Corporation of Japan. Eicher 
has achieved a local content of 
over 90 per cent for these 
vehicles. 

Volkswagen is keen to max- 
imise the level of local content, 
and hopes to capitalise on 
Eicher's experience in this 
area. Only then could their 
cars be competitive in the 
Indian market, Mr Posth said, 
indicating that his company 
would focus initially on medi- 
um-sized cars. 

Mr Vflcram Tal, ehairaym of 
the Eicber group said that 
India offered the VW group the 
advantage of a diverse and 
cost-effective additional auto- 
mobile base. 

Volkswagen will not restrict 
itself to a single model but 
proposes to introduce a range 
of cars in India - thou gh focus- 
ing initially on medium-sized 


tracks m a full year in Ger- 
many, where the L80 will go 
on sale from the start of next 
year. It will be launched a 
year later in several other 
European markets. 

The L80 frock will be sup- 
plied from Brazil as a chassis- 
cab with Brazilian-produced 
engines supplied by a local 
subsidiary of MWM, a German 
engine manufacturer. 

VW said that tt was seeking 
eventually to expand its pres- 
ence in the west European 
commercial vehicle market to 
include trucks up to 10 tonnes 
in addition to its present range 
of German-built vans, tight 
tracks and pick-ups. 


cars - unlike several other 
global vehicle giants entering 
tie market with a single car. 

• Bharat Shell a joint ven- 
ture between the Indian gov- 
ernment-owned Bharat Petro- 
leum Corporation and Shell 
Overseas Investment, is to con- 
struct a new lubricant blend- 
ing unit at Uran. near Bombay, 
to manufacture Shell brand 
lubricants for the inrHan mar- 
ket, writes Shiraz Sidhva. 

Mr Vikram Mehta, managin g 
director of Bharat Shell said 
yesterday that the company 
decided to set up its own unit 
because at capacity constraint 
at Bharat Petroleum's unit at 
Bombay, where the Shell range 
of lubricants are blended. The 
Rsl-Sbn company, in which 
Shell has a 51 per cent stake, 
hopes to enter India's domestic 
liquefied petroleum gas (LPG) 
market, which the government 
has yet to privatise. 

Bharat Shell already manu- 
factures LPG for industrial use 
for markets in western India 
and plans to enlarge the spread 
its network nationally. 


Tgirhw Tnarnifact urgd India 's 


INTERNATIONAL ECONOMIC INDICATORS: PRODUCTION AND EMPLOYMENT 


Yeorty data for ratal safes voting and fedusbU production plus al data for tha vacancy rata kidcator are m index tern wflh 1865-100. Quvtariy and monthly data for roM aataa 
and feduatrtaT production ahow Bib pereantape ctwwga over the corresponding period In tha pravfcwa year, and am poaHftw unfeas elhawariee stated. The unemployment rata la shown 
aa a pauttty* of the total labour force. Figures for the compoartta fe nci n g todk a ttnr are end-period value*. 



■ imn 

Baa* 

rED ST 

AXES 

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fefe— 

rale 


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baton 

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rate 


finrepuSi 
heto a 

■ GERMANY 

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fe* 

***** 


i 

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£1 

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1885 

icon 

loan 

7.1 

1005 

102*4 

1005 

1005 

25 

1005 

975 

1005 

100.0 

7.1 

1005 

1065 

1986 

1055 

loan 

an 

985 

107.1 

1065 

99.7 

28 

945 

1055 

1035 

1025 

64 

1364 

1055 

1887 

1064 

106.0 

6.1 

1055 

loan 

1135 

103.1 

28 

1085 

1165 

107.4 

1028 

65 


1065 

1888 

112.8 

110.7 

5.4 

106.1 

112-1 

1225 

113.1 

25 

1355 

1221 

1105 

1065 

65 

1645 

1122 

1889 

115jB 

112.4 

02 

9S5 

1105 

1325 

119.7 

22 

1475 

1245 

114.1 

1114 

55 

2127 

11&1 

1880 

118.4 

1124 

54 

845 

iron 

1415 

1245 

21 

1495 

1225 

1235 

1175 

45 

261.1 

1155 

1881 

114.0 

1103 

6.0 

to 9 

1115 

1445 

1265 

21 

1445 

1194 

1305 

1205 

45 

270.7 

1127 

1992 

117.6 

112 n 

7n 

003 

1165 

1395 

1195 

21 

1245 

118.7 

127.7 

118.1 

4,6 

2605 

108.1 

1983 

1235 

117.6 

8.7 

065 

1235 

1315 

1135 

2b 

1065 

1255 

1223 

1105 

55 

1965 

1111 

3rd qtr.1983 

SS 

42 

6.7 

665 

1195 

-65 

-45 

25 

101.7 

1245 

-25 

-84 

55 


111.4 

4tti qtr.1093 

5M 

4.3 

6.4 

68.4 

1235 

-65 

-45 

27 

1035 

1255 

-55 

-3.1 

85 


113.1 

lstqtr.1894 

75 

sn 

05 

715 

124.1 

-04 

-3.1 

28 

101.7 

130.1 

05 

0.0 

65 


1165 

2nd qtr.1983 


5 JS 

6.1 

74.7 

123.4 


-1.1 

25 


1315 

-25 

3.0 

6.6 

188.1 

1195 

August 1883 

6 JO 

4.3 

6.7 

66.7 

1165 

-55 

-25 

25 

1025 

1245 

-0.7 

—55 




September 

53 

4.4 

an 

665 

1195 

-55 

-6.1 

26 

1003 

1245 

-21 

-5.7 

65 


111.4 

October 

55 

4.1 

an 

835 

1208 

-65 

-65 

27 

985 

1255 

-35 

-45 

65 


1121 

November 

S3 

42 

04 

685 

1225 

-65 

-35 

27 

1115 

1255 

-5.1 

-45 

6L3 


1125 

December 

an 

4.6 

on 

707 

1235 

-25 

-35 

28 

995 

12S5 

-65 

-15 




January 1994 

45 

44 

en 

607 

1235 

-25 

-27 

2/ 

975 

127.1 

05 

-1.7 

64 


1135 

February 

7.2 

4.6 

64 

725 

123.7 

-35 

-44 

25 

97.7 

1284 

04 

15 




March 

10.1 

54 

65 

745 

124.1 

-65 

-22 

26 

110.7 

130.1 

05 

0.7 




Afrt 

7n 

S.0 

04 

735 

124.1 

—15 

-25 

28 

995 

131.0 

-8.1 

26 

ae 



MW 

55 

6.7 

6.0 

704 

1217 


-15 

28 

103.7 

1315 

20 

25 

65 

188.7 

118.7 

-feme 


5.9 

55 

74.1 

123.4 


0.7 

28 


.131.8 

-05 

4.1 

65 



Jrfy 


5.7 


706 



-05 





75 


188.7 



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■ ITALY 





■ UNITED KINGDOM 




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1985 

loan 

100.0 

ion 

1000 

1015 

1005 

loan 


26 

1035 

100.0 

100-0 

115 



1888 

102.4 

101.1 

104 

1075 

108.1 

1065 

104.1 


10.4 

110.7 

1055 

1024 




1987 

104.5 

103.1 

105 

117.7 

1085 

1121 

1065 


10.9 

1126 

110.7 

1065 

105 



1988 

107.9 

107.3 

mo 

1345 

1135 

1075 

1145 


105 

1175 

1175 

1115 




1888 

iron 

urn 

9.4 

161.1 

1135 

1165 

118.7 


105 

1155 

120.1 

1145 




1990 

non 

1120 

an 

1635 

1085 

1144 

1185 


105 

1125 

121.1 

113.7 

65 



1991 

1103 

1132 

94 

127.6 

1095 

111.0 

1154 


95 

1155 

1195 

1095 




1992 

non 

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104 

1115 

1065 

1165 

115.4 


95 

111.7 

1205 

108.7 

mo 



1993 

110.7 

iosn 

11.7 

904 

111.1 

1145 

1125 


105 

1215 

1245 

1115 

105 

775 

121.1 

3rd qtr.1983 

0.4 

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nn 

885 

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35 

24 

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105 

1235 

35 

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2nd qtT.IDM 

-1.3 

3.4 

125 

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45 

5.7 

95 

88.7 

124.0 

August 1993 

-in 

-35 

115 

804 

107.7 

15 

05 


aa. 

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26 

24 

104 

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121 

87.7 

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1.1 

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aa 

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34 

1.7 

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-2.7 

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125 

845 

1095 

-55 

-15 


aa 

119.9 

35 

22 

105 



November 

2 JO 

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12.4 

708 

1104 

-54 

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1205 

35 

35 




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77.7 

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15 


rut. 

121.6 

45 

35 

95 



Jaauny 199* 

0.7 

in 

125 

82.7 

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-AS 


Oa. 

1222 

35 

44 

105 



February 

1j4 

-1.0 

125 

85.4 

1125 


-05 


ruu 

1225 

25 

35 

95 

845 


March 

20 

oe 

125 

1035 

1135 


15 


IUL 

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3.7 

4.1 

9.7 

84.7 


April 

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as 

125 

1145 

1145 


65 


aa 

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45 

65 

95 

675 

1235 

May 

3.1 

3.G 

12.7 

non 

115.1 


28 


aa 

1235 

45 

55 • 

95 

885 

123.7 

June 

-2.7 

3.1 

125 

108.7 

1145 




aa. 


35 

65 


91.8 


July 





1144 




aa 


35 






M series aaaaonaBy afluatad. Statistics far Germany apply to w^a flJSytn any. Dat a a uppted by Datagram and WffA. Bat— safes nhnw data has national government 
sources except Japan ma Italy (value aeries deflated by OECD to tatd retail safes mptha and Italy (major outlets and Ja^jan uepedment Mitt otM. 

Industrial production: data tram national government eouoes. InctudM mMrg. nanutataatog. gas, «*ec«city and water emriy Industries except -lap» taMna and nMrajfkJurino 
onM and UK {afao tnefodes coratmetfon Industries). Uneeaployinontrafo: OECD sbndandssd rats whfcfc adjusts as 6* as posable tor the Afferent deA«^ 

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ariuartMlnn. Japan - new vacancies. Oemamr and Ranee - al lobs vacan Italy - no dstaarafoblp. UK - unfed mandat. Compostt a leadtoa tMBamar; QFC O 
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... 


FINANCIAL TIMES 

Length of 
life linked 
to social 
status 

By Andrew Derrington 

low social stains rather »h»" 
Qm impact of poverty Is the 
main reason poor people live 
less long than the rich and 
become ill more often, the 
British Association biennia] 
meeting in Loughborough, 
central England, beard y ester- 
day. 

Professor Robert Evans, a 
health economist from the 
University of British Colum- 
bia, used studies of monkeys 
living in captivity, free-living 
baboons in East Africa and 
do me sti cat ed London's White- 
hall civil servants (govern- 
ment employees) to hack his 
argument that ill-health is 
caused by the stresses of social 
interaction between people - 
or baboons - of different sta- 
tus. 

Civil servants were divided 
into four categories of increas- 
V „ status. Those in the upper 
echelons had longer Hfe expec- 
tancy and lower incidence of 
disease than those in the cate- 
gories beneath them. 

The baboons of the Serengeti 
showed a s imilar difference in 
health status correlated with 
their position in the pecking 
order. 

Reasons for the difference 
also emerged from measure- 
ments of stress-related hor- 
mones (glucocorticoids) and 
low density lipoproteins (LDL) 
in blood samples taken at dif- 
ferent times after social con- 
tacts between males of differ- 
ent status. 

Glucocorticoid levels are 
higher in male* of low social 
status. Levels in both groups 
peak after enco unte r s in which 
dominant males yawn at low 
status males - to show then- 
teeth - while the low status 
males are eating or mating. 

The higher glucocorticoid 
level in submissive baboons 
persists long after the encoun- 
ter. Long term glucocorticoid 
elevation also causes increases 
in LDL, a risk factor for heart 
attack. High LDL levels are 
found in the blood of low-sta- 
tus but not high-status males. 

To measure glucocorticoid 
levels it was necessary to 
shoot the baboons with anaes- 
thetic darte to take blood. This 
could not have been done with 
the civil servants, nor Is it 
likely that their superiors 
yawn at them while they are 
mating. Nevertheless toe mea- 
surement of their disease rates 
leave little doubt that the 
results would have been simi- 
lar. Prof Evans argued that 
changes to the NHS could not 
remove the inequality between 
rich and poor, because that 
difference does not result from 
differences in treatment 

• The number of people 
riatmiwg welfare benefits are 
underes tim ated by at least a 
third, according to a new 
social survey whose first 
results were released at the 
British Association meeting. 

The survey, funded by the 
Economic and Social Research 
Council, shows that people are 
moving in and out of jobs, 
family relationships and wel- 
fare programmes far more 
quickly than in the past - and 
more quickly than srefal scien- 
tists had previously realised. 

• Success in reducing the sort 
of industrial pollution that 
causes acid rain would 
increase the rate of global 
wanning through the green- 
house effect, the 
British Association heard. 

Dr David Carson, director of 
the Hadley Centre for Climate 
Prediction and Control at the 
UK Met Office, said; “It is now 
known that sulphur dioxide 
emitted in industrial processes 
can lead to sulphate particles, 
which reflect sunlight hack to 
space and cool toe surface — 
an effect opposite to that of 
the greenhouse effect.” 


TUESDAY SEPTEMBER 6 1994 


NEWS: UK 


Figures cool 
fears of swift 
UK rate rise 


By GraanTett 

and Afison Smith 

The patchy nature of the 
recovery in UK consumer sen- 
timent was unriflrKnArt yester- 
day after official figures 
showed that cons iimwr borrow- 
ing and new mortgage lending 
fell back sharply in July. 

The figures disappointed the 
City of London and slightly 
dampened fears about an 
imminent rise in UK base 


rates. 

Mr Kenneth Clarke. UK 
chanc e llor of toe exchequer. 


and Mr Eddie George, governor 
of the Bank of Rnglanri. will 
hold their monthly monetary 
meeting tomorrow. But 
although financial markets 
still indicate that an interest 
rate rise will occur soon, the 
weaker consumer data yes to- 
day led some economists to 
suggest that the increase 
might be delayed until late this 
year. 

The Central Statistical Office 
yesterday said that net lending 
to consumers through finance 
houses, credit cards in the Visa 
and Mastercard system and 
non-mortgage bunding society 
loans fell to a seasonally 
adjusted rawm in July. This 
was sharply lower than in 
June, when net fending s ur ged 


to a record level of £683m. 

Measured on a three 
monthly basis - a more accu- 
rate guide - net lending to con- 
sumers fell to £L13bn in the 
three months to July, down 
from £L28bn in toe three 
months to April. 

The main reason for the 
monthly fall, the CSO said, was 
a significant repayment of 
credit card debt. But with 
monthly credit figures notori- 
ously volatile, analysts were 
derided about the significance 
of July's drop. 

Nevertheless, doubts about 
the strength of consumer senti- 
ment were reinforced with the 
publication of figures for new 
mortgage lending in July by 
the Bank of England. On a a 
serially adjusted basis, all the 
statistics for lending under- 
taken and loans approved in 
total by banka and b uilding 
societies showed that activity 
in July was at a lower level 
than fn June. 

Meanwhile, in another devel- 
opment that also add ed to City 
doubts about an imminent rate 
rise, figures from the Bank of 
England yesterday showed that 
the anmiat rate of growth to 
MO, the narrowest measure of 
money supply, fell to (12 per 
cent in August - its third con- 
secutive monthly slowdown. 


New twist in row 
over Savoy hotels 


By Michael Skapfnker 

Mr Giles Shepard, managing 
director of the Savoy hotel 
group, yesterday took personal 
responsibility for a weekend 
statement criticising a director 
for allegedly leaking confiden- 
tial information. He said the 
statement bad not been author- 
ised by the company’s board. 

The statement followed 
reports cm Sunday that Mr She- 
pard had sent some Savoy 
directors a document outlining 
the case for the group’s contin- 
ued indep e ndence from the 
Forte group. Forte owns 68 per 
cent of Savoy’s shares but only 
42 per cent of the vote. 

The statement was seen as a 
reference to Sir Sfichael Rich- 
ardson. Sir Michael denies 
leaking toe report 


The attempt to resolve the 
13-year dispute between Forte 
and the Savoy senior manage- 
ment is expected to continue at 
a Savoy board meeting on Sep- 
tember 13. 

Mr Rocco Forte, Forte chair- 
man, baa been attempting to 
persuade shareholding trusts 
controlled by the Wontner fam- 
ily to hack plans to merge the 
Savoy's hotels — which include 
the Savoy, the Connaught and 
Claridge’s - with Forte’s lux- 
ury establishments. Sr Hugh 
Wontner was president of 
Savoy until his death in 1992. 

Opponents of the merger 
plan are believed to be arguing 
that it could raise legal prob- 
lems as It would give Forte 
control of the group without 
making any offer to the 
remflinmg shareholders. 



Britain in brief 

CMN bid 
for Swans 
collapses 

Prospects for a sale of 
Tyneside shipbuilder Swan 
Hunter to French-owned 
Saffia/Constructions 

Mecamqnes de Normandie 
collapsed yesterday, after CMN 
and Swans’ receivers Price 
Waterhouse failed to reach 
agreement an a deaL 
The abandonment of 
negotiations for a going 
rnir mi sale to CMN, the only 
prospective bidder to emerge 


from a worldwide search by 
the receivers, increases the 
likelihood that 164-year-old 
Swan Hunter, one of the 
world’s great shipbuilding 
names, wfll close. 

After final talks in London 
on a deal ended in stalemate, a 
spokesman for the joint 
receivers Mr Gordon Horsfidd 
said; “The gap between ns was 
too large to bridge and in 
these circumstances no 
purpose could be served by 
continuing talks to sell the 
business to Soffia/CMN.” 

He said the receivers’ next 
task was to discuss the 
implications with Swans’ last 
660 employees. Price 
Waterhouse and union leaders 
meet today at the yard. 



More than 200,000 people visited Buckingham Palace, the London 
open season - up 40 per cent on last year's experimental op ening . 


home of Queen Elizabeth 11, in the first four weeks of this years 
Profits look likely to exceed £2. 5m, compared to £2^m last year. 


Growth in 
private beds 


Private hospital beds in the UK 
have increased by 73 per cent 
since 1980, the Independent 
Healthcare Association says in 
its 1994 survey published 
today. 

The survey shows that there 
are currently 222 acute 

(gwrarql arri sur gical) 

hospitals in the UK with a 
total of 1LIB0 beds. During the 
past 15 years than has been a 
net increase of 72 hospitals, 
with toe greatest growth in the 
T Tiampg health re gions around 
T^nrirm apd the south east, 
and the Anglia & Oxford 
region. 


Calor Gaz 
strike ballot 

Bine collar workers at Calor 
Gaz, the gas products 
company, are holding a strike 
ballot over the introduction of 
personal contracts and pay 
cats for some staff of up to 


£100 a week. The Transport 
and Genera] Workers Union is 
balloting some 370 drivers, 
filling plant operators and 
distribution winkers at the 
company and an additional SO 
drivers working for Calor 
Transport, the contracting 
transport division. 

The dispute arose, said the 
union, when management 
approached manual employees 
earlier in the year proposing 
the cancellation of their 
union-negotiated collective 
agreement and replacing it 
with personal contracts. 


Blair faces 
union calls 

The leaders of the two largest 
Labour-affiliated trade unions 
warned Mr Tuny Blair, the new 
Labour Party leader, not to 
pursue his modernisation 
strategy at their expense. 

Mr Bill Morris, leader of toe 
950,000'Strong TGWU general 
union, said that the “Jury is 
still out” on the Blair 
leadership and described as “a 
bit of an insult” Mr Blair's 
recent description of the 
unions as a pressure group like 
any other. 

“We are more than a 
pressure group we have a 
special constitutional link with 
the party,” said Mr Moms, just 
prim to Mr Blair's visit today 
to the Trades Union Congress 
in Blackpool 

Mr John Edmonds, leader of 
the GMB general union, said 
that an agreement had been 
readied with the new party 


leadership that there would be 
no further changes in the 
party-union constitutional 
links prior to the next election. 


£60m university 
for docks 


plan 


Four universities have joined 
with the London Docklands 
Development Corporation in a 
consortium to build a £60m 
university campus in east 
London’s disused Royal Albert 
Docks - down river from the 
big office development at 
Canary Wharf. 

The group, which also 
Hirinifes T^iminn East Training 
and Enterprise Council and 
the Labour-controlled Newham 
borough council, has made a 
formal bid for £l0m from the 
gov ernment's new single 
regeneration budget, which 
brings together the urban 
regeneration budgets of a 
number of different 
fww winpnt departments. 

This is, the consortium says, 
its first and “potentially most 
critical” request for funds. 


OFT may look 
at drug pricing 

The Office of Fair Trading 
yesterday said it would 
challenge fixed prices for 
over-the-counter drugs and 
medicines if It succeeds with 
similar action to end the Net 
Book Agreement 
Although it has only began a 
preliminary examination of 


Mayhew sees positive role for US 


S ir Patrick Mayhew, the 
Northern Ireland secre- 
tary, is hopeful that the 
Republican movement will 
respond to British requests to 
clarification of the IRA cease- 
fire and that the process of 
involving Sinn F&n in direct 
exploratory talks leading to 
round-table negotiations can 
begin within three months. 

In an interview with the 
Financial Tunes yesterday, he 
explained why London, nnfike 
Dublin, does not yet accept 
IRA bona fides that the vio- 
lence is permanently over and 
what ride he hopes the US will 
play in the peace process. 

He also hinted at the con- 
tents of a forthcoming “frame- 
work document” for round- 
table talks, currently befog 
drafted by the British and Irish 
governments. 

He described the ceasefire as 
“a remarkably important step 
and a very welcome one. There 
was no condition attached. 
There was no finite character 
to it Those are very welcome 
features." 


Tim Coone talks to the N Ireland secretary about the exact nature 
of the pledge required to bring Sinn Fein into constitutional talks 


But he said the “profound 
levels of suspicion which are 
endemic on both sides of the 
community and very strongly 
present in the Unionist side” 
marip it essential to clarify that 
the ceasefire was pe r ma nent 

“Both governments have 
insisted that there shall be a 
permanent end to violence. I 
don't doubt to a minute the 
sincerity with which the Irish 
government believe that it is 
over to good. We have to be 
satisfied from what these peo- 
ple say themselves about their 
own intentions. 

“We are not insisting on a 
particular form of words. We 
just need to have an unequivo- 
cal assertion that they intend 
it should be over to good.” 

In a seeming effort to make 
it easier for Sinn F6in, the 
political wing of the IRA. and 
the Republicans to respond, he 
repeatedly stressed that the 


key to opening the door to 
talks is a public assurance by 
Republicans that the “inten- 
tion” behind the ceasefire is a 
permanent end to toe violence. 

Mr Geny Adams, the Sinn 
Ffsto president, wrote last week 
in the Irish Times that Dublin, 
the US and the nationalist 
Social Democratic Labour 
Party in the province have 
responded “positively and cor- 
rectly” to the ceasefire. Sir Pat 
rick said “that just falls short, 
why not just say They got our 

futantifiq rtght*. If Mr A dams 

were to say ’the Irish have cor- 
rectly perceived our Intention, 
to give it op for good’ that’s 
fine. Why not say it?” 

He ruled out a proposal 
mooted in Dublin last week to 
a trilateral heads of state sum- 
mit between the US, the UK 
and Ireland, but said he sees “a 
very positive role" to the US 
in using “its unique channels 


of communication with Repub- 
licans” to persuade them of 
“making it plain publicly that 
they intend that violence Is 
over for good.” 

The US understands the 
“realities” of Northern Ireland, 
he said, and it would be “very 
helpful” if the Clinton adminis- 
tration were to point out to the 
Re pub li dan movement “the 
genuine basis for toe British 
government’s uncertainty" 
over IRA intentions. 

Looking ahead, he said that 
the framework document to 
kick-start renewed all-party 
talks later this year, will be a 
negotiable document “There is 
no question at imposition.” He 
acknowledged ongoing difficul- 
ties but said London now 
accepted that amendment to 
the Republic’s territorial claim 
to Northern Ireland “would 
need to be put as part of an 
overall package." 


This will be essential to win 
Unionist support for an overall 
accommodation, he said. 

He was ambivalent on 
whether Dublin's insistence on 
amendment of the 1953) Govern- 
ment of Ireland Act which 
established partitition as a 
quid pro quo, will be included 
in the framework document 

“Everybody knows the Gov- 
ernment of Ireland Act is rele- 
vant to the package. What the 
circumstances in which they 
are going to be relevant maybe 
time will tell," Sir Patrick said. 

He said that the dispute over 
whether future cross-border 
structures would have execu- 
tive powers could possibly be 
dealt with by legislatures in 
both Northern Ireland and the 
Republic delegating powers to 
joint boards or bodies. “That 
seems to make a lot of sense,” 
he said. 


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pharmaceutical retailing, the 
OFT warned that toe removal 
of a system of prices fixed by 
manufacturers on proprietorial 
drugs would be a logical move 
if the Restrictive Practices 
Court accepted its demand to 
end the system that allows 
publishers to set minimum 
cover prices to books - the 
only other area still covered by 
retail price mainlpnaniy 

“We are looking at 
pharmaceuticals, but it is early 
days and any action would 
await the preliminary court 
bearing about the Net Book 
Agreement,” said an OFT 
spokesman. 

That hearing is not expected 
before next year. 


Air strike 
threat receeds 

The threat of strike action at 
Brittania Airways, toe UK’s 
second largest airline, was 
receeding last night after the 
company improved its pay 
offer to cabin staff. 

The 1,000 cabin staff, 
members of toe British 
Airimes Stewards and 
Stewardesses Association, part 
of the TGWU transport onion, 
had voted to take strike action 
to support of a pay claim 
worth between 11 per cent and 
IS per cent for different grades 
of staff. 

The company had responded 
by finding volunteers from 
other companies in toe parent 
Thomson Travel Group who it 
was training to take over 
cabin staff duties in the event 


of a strike. 

The new pay deal is worth 
three per cent on basic pay 
this year with a lump sum 
payment to make the annual 
rise worth about five per cent. 
In addition the company has 
agreed to increase the 
incremental pay scales for 
senior cabin crew by £100. 

TV talks on 
digital code 

Britain's rival broadcasters 
have got together to try to 
boost the chances of launching 
digital terrestrial television in 
the UK. 

The BBC.Channel 4 and 
representatives of the ITV 
system have been co-operating 
to tjy to find a way to launch 
what could be as many as 16 
new television channels. The 
new channe ls would use digital 
as opposed to existing 
analogue technology but would 
he br oadcas t from normal 
land-based transmitters. 

Exploratory meetings have 
already been held between the 
broadcasting organisation and 
more are planned. A key stage 
in the process isjiowever 
reaching agre ement on a 
Euuropean-wide standard for 
digital terrestrial 

The Digital Video 
Broadcasting project, which 
brings together 140 
broadcasting organisations and 
manufacturers, has already 
produced standards for digital 
satellite cable and is now at 
work on an agreed standard for 
digital terrestrial. 


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10 


F.NANC.AL TIMES TUESDAY SEPTEMBER 6 I'M 


MANAGEMENT: THE GROWING BUSINESS 



Putting the marital 
home on the line 

Before you put your house on 
the line to obtain finance for the 
business, tell your spouse. 
According to chartered 
accountants Moores Rowland, 
banks are increasingly likely to 
insist that partners know the 
Tall extent of their other taalfs 
commitments before agreeing 
overdrafts. 

The concern follows the case 
of Barclays Bank v O’Brien. The 
House of Lords has ruled that a 
charge the bank had! on the 
marital home should be set 
aside because it was felt the 
bank had failed to bring home 
to Mrs O'Brien the risk which 
she ran by signing the 
documents. 

Mrs O'Brien’s husband had 
led her to believe the security 
was limited to £60,000 and 
would be in place for only three 
weeks, says David Rogers, 
Moores Rowland partner. When 
the overdraft reached £150, (MM 
the bank brought proceedings to 
enforce the charge. 

The charge was set aside 
because the document Mrs 
O'Brien signed seemed finance 
to her husband’s company in 
which she did not have an 
interest 


Most companies 
flout safety laws 

Seventy per cent of UK 
companies admit they are not 
complying with health and 
safety legislation 18 months 
after it came into force, 
according to Eagle Star, one of 
the UK's largest employer’s 
liability insurers. 

Only 30 per cent of the 405 
companies surveyed had fully 
implemented changes required 
by the workplace safety 
regulations which came into 
effect in January 1993. The 
activities covered were as varied 
as the use of visual display 
screens and manual lifting of 
loads. 

Eagle Star says companies are 
running the risk of prosecution 
and unlimited fines. Moreover, 
accidents are costing employers 
30m lost working days a year. 


S tarting a business is a 
dream for many people. But 
turning that dream into 
profitable reality is much 
tougher than anyone ever admits. 

The biggest difficulty for the new 
business is invisible: hidden costs. 
These unexpected expenses cannot 
be budgeted for and can mean the 
difference between survival and 
going under. 

“None of the business advisers 
that I spoke to gave me any hint 
that huge bills can suddenly be 
slapped on you," says Christina 
Simons, managing director of 
Simons Communications. She 
launched her Surrey-based public 
relations company in February 
1993 and won the Lloyds Bank 
Award for Best Financially 
Controlled Business in Sutton in 
May 1994. 

For Simons, cost control Is 
critical, but hidden costs undermine 
that control. “With no idea of what 
yqu face in advance, there is no way 
you can plan what you need 
precisely. You can't calculate your 
set-up costs accurately." 

1 launched a small company in 
1993, the Journalism Training 
Centre, and borrowed £30,000 from 
Barclays for computer equipment 
The bank was unable to tell me 
the precise cost of arranging the 
loan until just before we signed the 
agreement It turned out to be 
£300. 

Another cost arose because the 
Loan Guarantee Scheme is 
available only for companies with 
no security for the loan. So 
Barclays demanded I sign a 
debenture, establishing a charge 
over my assets. For arranging the 
debenture, the bank charged an 
additional £175. I challenged this 
cost and it was eventually waived. 

To discover the total expense 
forced on the centre over the post 18 
months, I analysed all of its set-up 
costs. Of the £80,000 spent 
equipping it, I discovered that 
hidden costs accounted for a 
quarter - more than £20,000. 

The largest hidden cost occurred 
when the centre moved into a 
three-storey unit in a modern 
business park in Mitcham, Surrey. 
The Sun Alliance Insurance 
company demanded the installation 
of security equipment to protect the 
computers. 

A security consultant 
recommended extra door and 
window locks, as well as an 
infra-red sensor system on all three 
floors. I was advised to mark all 
electronic equipment indelibly and 
to install metal shutters on the 
ground Horn:. 

Another hidden security cost was 
revealed when the alarm was linked 
by telephone line via a monitoring 
station to the police. British 
Telecom charged £150 to install the 
line and £450 annual rental This 
was a surprise, and brought 


Hidden costs of starting a business 


Indudaa loan arrangement foes 


COMPUTERS 


Includes disputed overpayment, eniergantiy rental costs and maintenance contract with new supplier 


- Extra lease payment as security 


ELECTRICAL INSTALLATION 


Indudas comectkn, fretafea&on of power potato and dtfftseocd between Ertittal power quote and actual anruaimaicewdus 
Inducted rent deposit and coat of pfanringeppbcatlon . 


kictutes locks, afc»rr»and ssraore; registration andmorttoring fees; metal shutras; security marking fcabefe 

KmMKB 

Includes installation costs 


TOTAL HIDDEN COSTS 


NJS. Aff figures mdfads VAT and budgelMl capttrf tmpotxftuw, v'catpAn. ewtchbOBd sad copier 


Expect the 
unexpected 

Hidden costs can mean the difference between 
success and failure, explains Steven Sonsino 


security costs to £5,400. 

Office telecommunications also 
proved surprisingly expensive: eight 
lines for the switchboard and a fox 
line cost £1,350. Visits by BT 
engineers to check the system cost 
£25 each. The installation bill - 
excluding switchboard, fax and 
handsets - amounted to £1.570. 

While BT and other public 
utilities cost more than expected - 
extra power points, for example, 
and inaccurate heating estimates 


and telecommunications suppliers. 
“BT cut us off by accident on our 
second day of trading," she says. “It 
took me hours to sort ont. And 
that’s another hidden cost - 
management time." 

The most costly supplier setback 
at the Journalism Training Centre 
was the late delivery of a computer 
system. The hardware was delayed 
by nine days, forcing me to borrow 
software and rent machines for the 
trainees, ft cost E2J.OO. 


'However long suppliers say installation will 
take, it always takes twice as long’ 


amounted to further costs of £3£25 
- another hidden extra arose horn 
our suppliers. 

One of my colleagues says he is 
especially annoyed by the poor 
service most suppliers provide. It 
always involves extra costs, he 
claims. Simons, too, is angry over 
suppliers’ service. “However long 
suppliers say delivery or 
installation will take, it always 
takes twice as long. And many of 
them foul up.” 

The worst suppliers in her 
experience are computer dealers 


The software never arrived. I am 
now in dispute with the supplier. If 
you are going to have to rely on a 
piece of equipment, be sure to 
allow extra time for delivery. 

What is disappointing is that so 
little of the small business 
literature, and so few consultants, 
prepare the entrepreneur for hidden 
costs. Even with the best of present 
advice, up to a fifth of all small 
businesses in the area, the London 
Borough of Sutton, go out of 
business in their first year. A third 
or more - 30 to 40 per rent - go 


down in the second year. 

John Wren, former exeentive 
director of the Sutton Enterprise 
Agency, says: “When I review any 
business plan I look to have a 
contingency figure in there. People 
ask what it is for and I tell them: ‘If 
I knew what it was for, it wouldn't 
be a contingency/ There rarely is 
enough there to cover the hidden 
costs." 

For many entrepreneurs, on the 
threshold of creating their business 
dream, unexpected expenses can be 
a recurring nightmare. 

To minim ise these surprise 
extras, businesses can try to follow 
this checklist 

• Shop around for suppliers, but 
remember that a short-term gain 
from a cheap supplier could be a 
long-term loss. 

• Cost control is an important key. 
Simons says: “If it isn’t vital for life 
we don't buy it’’ 

• Get every detail of every deal 
with every supplier in writing. 

• Before you launch a business, 
talk to someone who has already 
done iL Ask what their hidden costs 
are. 

• Build in a contingency factor: 
add an extra 33 per rent to your 
most accurate quote on everything. 


From ‘must have 
to ‘nice to have’ 

Richard Gourlay looks at one 
man's way of reinvigorating sales 

.. Dniiharv 


Y ou have developed a 

business on the back of one 
niche product. The business 
has taken off bat large 
competitors are catching up and 
sales growth is levelling ofT. How 
do you reinvigorate sales? The 
answer is, with difficulty. 

One approach is to work with 
the existing product - push it 
Into different markets or develop 
it further. Another is to launch a 
new product for the same 
customer base. 

Martin Yates, managing 
director of Salaidin, an 
Information technology company, 
bad this problem and adopted the 
second approach but found it 
threw up all sorts of unexpected 
challenges. 

Saladin’s original product was 
directed at the global oil trading 
markets and provided traders 
with data consultancy services 
and software to manipulate 
information. If you wanted to 
know the value of products that 
could be refined from a Nigerian 
crude oil at any refinery - the 
so-called net-back calculation - 
Saladin’s service provided it 
Yates and his partners bought 
an early prototype and some 
software from the Gniness Peat 
group where he was working as 
the ailing banking group cut back 
its peripheral operations in 1986. 
With backing from a Gulf 
investor, his team developed the 
product, launched it at the 1987 
Institute of Petroleum oil 
conference and soon after won an 
order from Exxon In New Jersey. 

From a standing start, Saladln 
found its Petroleum Analysis 
Work Station took off, and before 
the company was walking it was 
setting np international offices 
near its customers. 

Then the momentum began to 
flag. “Three years ago we realised 
we had penetrated pretty deeply 
and we had to do something else,” 
says Yates. 

“Each incremental sale was 
getting more difficult As 
competition was increasing, the 
challenge was how to get sales 
from £3m to £5m and £15 m.” 

Yates recognised what dealers 
wanted was the same information 
in a Windows environment and a 
way of pulling together on one 
screen different feeds from 


diverse sources such as Reuters, 
Platts and Knight Bidder. But 
most of all they wanted the 
manipulated historical data 
integrated with real-time 
information. 

The first problem was getting 
additional backing. The business 
was only breaking even and Yates 
anticipated development costs 
could be as high as £2m. Yates’s 
original backer was not interested 
in growing the company. Finally 
the investor was persuaded to sell 
to venture capitalists Including 
Advent UK and Geocapital. 

Another problem was the 
development project itself. In 
order to bring in fresh ideas - 
and to avoid taxing the 
management team's time - Yates 
brought In an external 
information consultant on 
contract But while he knew bis 
subject backwards, he trod on 
toes and put noses out aC joint. 

“He challenged the status quo, 
which was goal,” says Yates. “If 
we were going to compete with 
Reuters and Telerate we needed 
something different’’ 

Taking on an outsider was “a 
real flyer", Yates says. “It created 
tremendous turmoil. I did not 
realise the organisational and 
human problems that would be 
caused by it" 

Saladln spent an amount equal 
to a quarter of its 1992 turnover 
developing the new product But 
inevitably, it was not able to 
develop the new Crusader product 
without additional backing and 
further dilution for the founder 
shareholders. 

But Saladin did get its new 
product Yates says the company 
will be profitable this year and 
next year sales should rise to 
£7m. although leads are only 
slowly turning Into firm orders. 

“The first product was certainly 
easier because there was a gap in 
the market” he says. “The new 
product is not a ’must have' but a 
’nice to have 1 .” 

Was there an alternative 
strategy, like not developing a 
new product? Yates says no. Quite 
apart from technological change, 
which meant traders wanted 
real-time information on 
Windows, Yates had no Intention 
of managing a small business that 
was not growing. 


BUSINESS OPPORTUNITIES 

READERS ARE RECORHREMIED TO SB3C APPROPRIATE PROFESSIONAL BEFORE EKTERMG WTO OOWTOdTS 


warn 



□ Housebuilder a Land a Part-built residential 
developments a Joint venture opportunities 
Any location in the South East considered 


Please contact 

David Calverley, Managing Director 
or Jonathan Smith, Land Manager 
Tel : 081 982 4814 Fax : 081 982 4817 

(All calls in the strictest confidence) 



Try Homes Limited 

Cowley Business Park, High Street Cowley, Uxbridge. Middlesex UB8 2AL 


PROPERTY 

COMPANIES 

REQUIRED 

We are seeking to acquire 
the shares of a Private 
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Company or Companies. 
Value £3m up to £20m 
Agents Retained. 

Good Fees Paid. 

PORTFOLiOS ALSO CONSIDERED 
Contact Graham J Martindale FRICS 
Telephone: 06 1 4367076 


B.E.S 

COMPANIES 

REQUIRED 


A snh ta a nri d PLC company seeks to 
acquire BJLS. company shareholdings 
with residential property assets. Please 
forward balance sheets and schedules 
of holdings la 
Y. Marlow 
105 Pari: Street 
London WIY3FB 
Td: 071-493 6747 
Fuk 071-373 02 IS 


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PUBLISHERS AGENT 


US based international publisher of the World's 
No. 1 banking directory seeks an agent to 
represent company in Europe. Banking experience, 
or selling advertising or information services to the 
Financial industry a plus. 

Applicant must be a self-starter, highly motivated 
and be able to deal with senior banking officers 
one-on-one. The individual selected will have the 
opportunity to be highly compensated. Interviews 
will be scheduled during week of 25 September. 

Fax or mail C.V. and salary history to: 

President, Polk's Bank Directory 
c/o Ms. Elen Lane, NDL International 
Porthouse Square Rigger Row 
Plantation Wharf, London, SW11 STY 
FAX: 071-738 0418 


Business Angel Sought 

High Technology Manufacturer of capital equipmeni with Hue chip 
customer base seeks equity investment of up to £250,000. The 
company is the UK matlox leader In a niche market seHng primarily to 
ihe Pharmaceutical Industry. Having invested subatantiaty in a new 
product development and enhancement of existing products the 
company requires funds to exploit the potential of these both in the UK 
and throughout the European Union. 

Net assets £500k. Turnover £4m wfth consderabte growth potential, 
write to Box 83371, Financial Times, One Southwark Bridge. London SE1 9HL 


CHANNEL ISLANDS 

Offshore Company Formation 
and Administration. Also 
Liberia. Panama & 0 VI etc 
Total offshore facilities and 
services. 

Foe dcoib and appcmunctu arise 
Cray TraM Lid, Belmnu House, 

2-6 Belmont Rd. S( Heifer, Jersey, Cl. 
TcL- 0534 78774. Ru 0534 3S-UJI 
Tlx 4192227 COFORM C 


COMMERCIAL 

FINANCE 

Venture Capital available 
from £250,000 upwards. 
Sensible Rates, Sensible 
Fees. Broker enquiries 
welcome. 

Anglo Amortwn Ventures Lid. 

Tat (09341 201388. 

Fjx (0924J 201377 


Fully Furnished Offices 
United Kingdom 


C/> 

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• Secretarial services 

' Photocopier fax; WJP. 

• PcukmuI telephone answering 


■ Conference facilities 
• Flexible lease taros 

■ Immediately available 


Tuld|<rSqiMr, Uniyl 


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Tel: 071 872 5500 


EXISTING CABLE NETWORK 

We operate a cable system using twisted pair cable to carry 
entertainment programmes. The system passes 650,000 households 
in a prosperous country and has a solid base of existing subscribers. 

We are interested in working with a major communications or 
electronics company that can provide the know-how and money to 
use modem digital compression technology to either 

la) develop the system into a folly interactive system, or 

b) use it as an experimental, pilot network to prove the viability of 
such systems 

Please write to Box: B3388 financial Times, 

One Sodbwaxfc Bridge London SEL 9HL 


INVESTMENT/ PARTICIPATION 
OPPORTUNITY 

Approaches invited from Private, Corporate, Institutional sources by 
Private Group occupying a specialised comer of the manufacturing 
industry with its own direct broad based Home and Overseas sales. 
Most recent published figures show jElOJm T/O, JEl.Om Pre-tax. 
Opportunities for growth in existing market via a mutually agreed 
Business Plan over the next 5 years, possibly leading to PLC status. 
Investment at an equity level from 30-70% coupled with the 
[opportunity to participate at top level in person or by nominee. 
Genuine enquiries only, please. 

Write to Bax: B33B4 Fhuuiaal Twice, One Soufewstfc Bridge. London SEI 9HL 


Selling your Business? 


We have the skills and experience to achieve the best price for your 
business and structure the deal to achieve maximum tax efficiency. 
If you are considering a sale and your turnover exceeds £lm, 
wc would like to talk to yon. 

Onr charges are based largely on results, so yon have little to lose. 
For a confidential discussion without commitment please contact 
Lance Blacks tone or Gary Morlcy at: 


Blackstone tfiackMoco Iniiiks Corpora tv 1 iipncv 

Fr-inl'S 26-3-t Old Street. London ECtV OHI. 

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PROPERTY BARGAINS Tenanted ton. 
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DOMESTIC PUMPS 

Manufacturer of a wen 
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looMrg to tfvest or enter Into 
a supply only partnership. 
Sales potential - £1 mBflon +. 

WHta « Box 83381 , FinencM Ttewa, 
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land AG (NTS AHO 
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Contact Andrew Jones, ARICS 
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29 St Mary's Street, Stamford, 
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MASTER 

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MBI beam to raise/put finance 
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existing company with 
sales/ manufacturing facilities. 

Box number B3364, 
Financial Times, One Southwark 
Bridge, London SEI 9HL. 


Current Investment Opportunities 
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on 081-902 8998 for details. 

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Telephone 

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FINANCIAL TIMES TUESDAY SEPTEMBER 6 1994 


V s ' , S 

° liay e '* 


business and the law 


T he recent decision by 
Compaq Computer of 
the US to pm a health 
warning o n the key- 
ooards of its personal com- 
puter products is expected to 
have a significant impact on 
computer-related personal 
mimy litigation worldwide. 

Compaq's label draws users' 
atte ntion to the risks of repeti- 
tive strain injury (rsq - an 
umbrella term for disorders 
with symptoms including 
swelling and chronic pa i n in 
the hands, arms and shoulders. 
In the US, more than 2,000 law 
suits have been filed agains t 
computer manufacturers by 
individuals who claim to have 
been injured through using 
keyboards. 

The UK and Australian 
courts are also handling 
numerous injury claims 
Unlike in the US, where 
employers are largely pro- 
tected from liability for work- 
place injuries by workers' com- 
pensation insurance, 
employers are the primary tar- 
get of litigation in countries 
such as the UK 
US lawyers say that Compaq, 
the world’s largest personal 
computer manufacturer, has 
started using the warning fafo»t 
to limit its liability to future 
claims. - However, Compaq's 
action may increase the vul- 
nerability of other computer 
makers, as well as employers, 
to injury claims. 

The US version of Compaq's 
keyboard label reads: "WARN- 
ING! To reduce risk of serious 
injury to hands, wrists and 
other joints read the Safety & 
.Comfort Guide.'' The guide 
reinforces the message in even 
stronger terms: “There may be 
a risk of serious injuries from 
working at your computer 
workstation” (Compaq’s 
emphasis). It then gives guide- 
lines on minimising the risk. 

The warning “represents an 
acknowledgment that, there is 
an association between key- 
board use and injury”, says Mr 
Arnold lAlrinrf, a partner in 
the New Jersey firm of Szafter- 
man, Lakind. Bhunstem, Wai- 
ter and Blader, which is repre- 
senting about 200 p laintiffs in 
RSI complaints against com- 
puter companies in the US. 

Lawyers acting for people 
brin g in g RSI cases against 
employers in UK courts also 
regard Compaq’s statement as 
si gnificant They say it is the 
first explicit admission by a 
manufacturer that the use of 
keyboards can be dangerous. 

According to Mr Lakind, 
Compaq's move is wise. The 
label "will help Compaq 
immensely because, to. the 


V : 


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, 

* • 1 


s -‘- ■■■-•>* 


Louise Kehoe on the implications 
of labels on computer keyboards 

Warning note 
is sounded 



Risk control: Compaq is putting warnings on its PC keyboards 


extent that somebody uses the 
keyboard after the warning, 
they may be assuming the risk 
of further injury. It is a very 
positive move by Compaq.” 

He points out, however, that 
Compaq’s action may have 
repercussions for other manu- 
facturers. Tn several respects, 
Compaq’s warning labels 
increase the liability of other 
manufacturers that do not put 
labels on their products.’’ 

Compaq has demonstrated 
that there is an effective way 
to alert users to the risks of 
keyboard use, rays Mr Lakind. 
“Other companies now have a 
greater likelihood of being 
sued, because Compaq has 
shown that it is feasible to 
warn users while other compa- 
nies have declined to do so.” 

Similarly, UK lawyers acting 
for insurers or employees say 
warning labels will undermine 
the argument that employers 
are unaware of the dangers of 
keyboard use, it more 

difficult to defend against 
injury elafmft. 

Mr David Scrutton of Kenn- 
edys, a law firm that often ads 
for insurance companies, says 
that employers will be under 
increased pressure to abide by 


the Eu ropean health and safety 
direct iv e, which compels them 
to take a number of precau- 
tions to avoid injuries to staff. 
“Just plonking a computer on 
a desk and relying on the man- 
ufacturer’s warning will not be 
sufficient to satisfy these regu- 
lations." he says. 

Claims by medical experts 
that there is no fink between 
RSI and keyboards - a feature 
in some cases currently before 
the courts - will now be 
scarcely tenable, says Mr Peter 
Woods of London law firm 
Stephens Inno cent 


M r Tom Jones of 
Thompsons, an- 
other London 
firm, believes 
warning labels on PCs will 
shift the direction of court 
cases. Rather than arguing 
about the link between key- 
boards and RSI, they are likely 
to concentrate more on the 
efforts undertaken by employ- 
era to protect their staff - a 
move that could make litiga- 
tion even more complex. 

In what appears to have been 
a last-minute change prompted 
by legal concerns, Compaq has 
said that the warning label on 


BUSINESSES FOR SALE 



MANAGEMENT COURSES 


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OFFICE EQUIPMENT 


Fdrta wimtata of Eapreadans of Merest aowol .ash odor tooOKttn a copy of ta Oran ® 
Mafn aa ndwn lor afticfta ahow mania iad noma ot areata ptaaaa contact Tbe H quMNo r , 


;.T -T-a ■ ' t toiv i 1 


Substantial multi-franchised group (t/o £40 m, PBT £lm) seeks 
purchaser with cash resources to continue development and 
expansion. Brlwing management wish to remain and are flexible on 
deal structure. Would suit pic wishing to diversify/cash she [I/or group 
writing to Dost in foe merihrm term etc. Minimum flash requirement 

£6m. 

Gamine replies from Principals only should be addressed to: 

Bax £3365, Financial Times, One Southwark Bridge, London SSI 9HL 


OFFICE FURNITURE 


Wa have - direct from the manufacturer - new high quality 
executive and system ranges - 

Large choice of veneers, melamine and/or lam inate finishes 


with discount of up to 40% from R.R.P.! 


London Showroom for viewing: 

Ariel House, 76 CharIotte^Slra«t, London W1 

Full camcad and planning services. 


UNEABURO LTD Tel: 0992 503313 


BUSINESSES eor sale 


Appe* in thTinnandi Tiroes oa Tuesday*, Fridays and SaumtayiL 
fiorforfoBr infonnati™ °r 10 pl«* contact 

gad Loynioaon +44 7wn*ntaar 
Lrf fr y Sumner on +44 71 873 3308 


SOFT TOY 
BRAND SALE 

Well established Soft Toy brand 
wife reputation for high quality 
for sate. Extensive national ami 
Western European distribution. 

IVasc Writ ta Bcnc B3?R3 RnaodtJ Tima, 
Ov^oribwwfcBt^ London SEl 9FH, 


BUSINESS OPPORTUNITY LOG 

UKb moat complete and *p lo dric death oe 

• Bw«hw *ert Llval J «itBM 

* Cmfwaks Im Trouble 


Ptcdoecd by mpafcwced preferebub wirt 
kmm bMkti pMpto ■» mbd 
Bredrab of Ore. tad motto* n od iw. 
HA- 0!73 89J0W fee COT WOWO 


GAKMN& MY PRODUCT BAWGE. 
Established iknwghotf UK A Eire in 
tatep-tero wm Ban. MY asdttpfai — 1 ml 
enlut Untapped pMmtlil In Europe. 
Sakeanincted production, distribution A 
MM jt Sot aMnpnn y lianUU m 
(Ms Barfcel or add to entreat range. T/O 

am0in4Sft pnOL omojaisnw 

WitcBBsBaS&HaRUItaKOn! 
Sonbat Bdfea, Land* SHI 5HL 


FOR SALE 

Consistently profitable medium 
sized engineering company 
operating from freehold 
premises in Midtands location 
lor over 30 years. 

Mche market for design and 
manufacture of mJti drVheads 




SOtflHAJPRfCA- 
Shopping Game 200j000 sti oo 15 acre 
rite, hwy frontage, lm trwfing area, 
lax "hafidny*, MtUy net income 
$I00k+, afft. flSm - asking SL&5m - 
Fnao ri ng availibk, brotos welcome, 
fire colour kit. 

Coil Andy: USA 

T*L 41228X699* Fax: 412381 6995 


RETIREMENT SALE 

Private limbed Company 
Established 1936 
Wholesale to Haberdashery 
& Needlecrafi Trade 
. BaxB33S&, Hanoi] Hme«, 

Om Scndmifc Bridge, Lomkn SEt 9HL 


BUSINESSES FOR SALE 


PCs sold in the UK and Austra- 
lia will be toned down. It will 
read: “IMPORTANT NOTICE: 
For comfortable and safe use 
please read the Safety and 
Comfort Guide.’* 

The purpose of this label and 
of the US one is the same, 
according to Compaq - to draw 
users’ attention to the guide 
book, which will be the same 
throughout the world. The dif- 
ferent wording is a “cultural’’ 
issue, the company says. 

The variation, however, also 
reflects the different legal cli- 
mates. In the UK and Austra- 
lia, where employers have been 
sued, computer manufacturers 
must balance concerns about 
liability with the interests of 
corporate customers. 

In the US, it is computer 
man ufacturers which are being 
accused of falling to warn cus- 
tomers about the alleged risks 
of injury. These cases will 
revolve around the question of 
“what the computer companies 
knew and when they knew it”, 
says Mr i-afcmH To date, no 
damages have been awarded in 
these product liability suits, 
although there are rumours of 
out-of-court settlements. 

Because there is no defini- 
tive scientific evidence linking 
keyboards to injuries, other 
com put er manufacturers have 
so far been reluctant to Issue 
warnings. “A warning suggests 
that there is a problem with 
the product,” says one official 
at IBM, the computer giant. 
IBM maintarng that it is the 
way that some people use the 
products, rather +Han an inher- 
ent feature of keyboards, that 
can cause injuries. The com- 
pany has no plans to put a 
warning label on its keyboards. 

However, Microsoft, the lead- 
ing supplier of software for 
PCX which is soon to introduce 
its first keyboard, will put a 
warning label on the product, a 
company official says. And 
members of the Center for 
Office Technology, a US PC 
Industry group that has 
focused cm RSI problems, plan 
to meet this month to recon- 
sider the labelling issue. 

The outcome of an RSI claim 
against IBM, due to go to trial 
in Rhode Island next month , 
may determine whether warn- 
ing labels become a standard 
feature of PCs. 

If they do, and the link 
between RSI and keyboards 
becomes more explicitly 
acknowledged, it will be 
increasingly incumbent on 
employers worldwide to pro- 
vide safeguards against key- 
board-related injuries. 
Additional reporting by John 
Mason 


BUSINESS FOR SALE 1 

CHANNEL 

ISLANDS 

Attractive opportunity for a 
group or individual to acquire a 
market leafing Channel islands 
merchaming company. 

Turnover £1.7 million with pre- 
tax profit of £235.000 on net 
assets of £ 600,000 plus. 
Potential purchasers please 
write to Box No B3362 

F in ancial Times 
1 Southwark Bridge, 
London SEl 9HL 


WELL ESTABLISHED 
INSURANCE BROKING 
BUSINESS 
FOR SALE 
Turnover in excess of £2m. 
Net commission income 
Lr.o. £400,000. Based in 
the north east of the UK. 

For farther dctaOi ptcae respond to: 
Boh B3378, Financial Tone*, 

Om Soodiwart Botjpe, London SEl 9HL 


^HORTICULTURAL & 
LEISURE TURFCOMPOST 
MANUFACTURING CO. 

Also allied products to the Toy Trade. 
Turnover nearing one million UK 
Market, very profitable, family 
business, owners wishing to retire. 

BOX NO B3379 
ffnanrial Times, One Sootfawark 
Bridge, l/ndoa, SE39HL 

BUSINESS FOR SALE 

Midlands 

Well established company 
in transportation. Blue chip 
customers, £1 1m turnover, 
opportunity to expand. 

Write hk Bax B338S, Financial Times. 
One So u th * Bridge. London SEl 9KL 



BUSINESS FOR SALE 

John Wood 

(Steel Drums) Limited 

The Joint Adnvnistrative ReceJ vers offer far sate as a going concern , the 
business and assets of this LancasWrohaEQd stool dmm manufacturer 
of S3 years standing. 

Principal features include; 
v Annual turnover of approximately £6 mflton 
v Freehold premises of 52,000 sq ft on 2.7 acre she 

• Substantial amount of plant and machinery and 
commercial vehicles 

* SkBledworidoreemaybeavailable 

♦ Established bluo-chjp customer base 

For hnther Hoimation, interested patties should contact Neil Geddes or 
Peter Bentley, quoting reference number M5214, at 

Levy Gee, Maxdov House, 327/341 Chapel Street. Salford, 
Manchester M3 5JY. 

Tel: 061-8352843 Fax: 061-8329405 


SPECIALIST AEROSPACE BUSINESS 


Atlantic Equipment 
. (1992) Limited 

The Joint Administrative Receivers. Nigel J Vooght and Timothy R Harris, oflerfor sale foe 
above, mothballed business md assets at this West Byfleet based company, which 
specialises In the design, development and manufacture of CAA and JAA approved Aircraft 
Cabin Interior equipment and Cabin Crew Trainers. 

Principal features of the business include: 

• established blue-chip customer base of 50 airlines and aircraft manufacturers 

• valuable work-in-progress and over £6 mlfflon at orders and enquiries 

• leasehold factory o( 14,000 sq ft Modem Industrial Unit 

• expertise In the handling and assembly of Bghlweighl composite materials. 

For further Information, please contact Scott Me Donald or James McClellan at 
Coopers & Lybrand, HJUgate House. 26 Old Bailey, London EC4M 7PL 
Telephone: (071) 583 5000. Fax: (071) 212 6000. 

Coopen & Lybrand h atnboriird by die institute of Chiiwml Acontnunu la LngbraJ and Waks to cany on 
bnvcuuneai Branco. 


Multidisciplinary Consultancy 

FOR SALE 

A long otahfohod, and profitable cmmhancy will) rwo offices outside of London 
serving a broad mg? of iodutrial & commercial diems is for sale doc to the 
principals' wish to coooentiate ot> other activities. 

A strong managemest team Is in place to ensure the continuing success A 
pro fi tab fl tty at the company. 

Enquiries in writing bom interested principals only w3l be considered in the 
strictest of confidence. 

Box B33S6, Financial Tbacs, One Soirihwnrfc Bridge. London SEl 9HL 

INVITATION TO ‘TENDER FOR THE HIGHEST BID 
FOR THE PURCHASE OF THE TWO GROUPS OF 
ASSETS OF 'ECU. PAPER MANUFACTURING OF 
WESTERN GREECE SA* OF PATRAS, GREECE 

EthnHd Kephaieou SA AtMnMratton ol Assets and HoMBtea. at i SUdeniou Str.. 
A tfient, Q reoco . fcn tt s capacity as liquidator of •EQJ, PAPER MANUFACTURING OF 
WESTERN GREECE SA company with da regteteied office In Palms, Greece (the 
Company). pnsaiNy under apodal S p iMon, aoconSnp Id the prowMona of Artlde 48a ol 
l*w lUCflflfiO, by virtue atbaddtan No. 10880982 Jlho Pains Court at Apperf, upon 
insttuedom trf MusMel Reconstruction Otgadsadon (BO), a doctor represanlbn more 
tan 51* of the datma against ffie Company, (the CradBo) puiatwnl to par.lle trfArtlcte 
48e of UwiaaariflBO (as auppM nt dad by antdesscit law 2284/1884). 

Invites tenders 

torta Nglwt bid by sutntaion of sealed blntfing oOem lor ta purehasa by a BtW pubfle 
auction (ta ■Auction*) of either one or both of the Qroupa of the Company* eoeed 
deaatad below. 

BREF HFORMAnON: The company was wtabOstudki 1888 and remained h operation 
unU 1891. Its products induded wmpping end pedtagrig paper, {geese thaua paper, 
wrtbng and printing paper. M.G. paper, coated paper, cardboivd. etc. No peraotin e l b 
ttmwdy o mp l Dyed. 

GROUPS OF ASSETS OFFERS) FOR SALE; 

A MDU8raALCOM>LEX IN PATRAS. comprising buldkn w«h Wd area n«32fl »4 irf 
and Md wtume at 288,761 of bull an land of 4&310 nr. Ova poper-rnating machines 
and other madowl ca i equfpmwc and ttve plots of land MaBng 5.484 m 1 phis other 
■saw such aa hanltura. equbmwtt. trade oaota, oadfr+Hriodt. recebaMea, ta aade 
name of ta company, etc. 

a INDUSTRIAL COMPLEX M AEGtON compti atinj bUkflnge totatting 20,108 nt* and a 
total whsne of 200,683 nt. tads on land of 84JM1 m*. one paper meeting machine end 
Otter mocha^d apdpmat* and one plot d land ol 383 in' ptua otter assets such as 
office fumtrea, equbmert. are. 


d ihe Otatig Uemoranden tor aach of ta dxwa oroupe of assets and any other 
nallon upon signing a contdanidtty agreemanL 


1 Grounds Maintenance Business 

Central Scotland 

The business and assets ol a well established 
grounds maintenance organisation are lor sale as 
a result ol the proposed privatisation of Die depart- 
ment of a major pebllc sector organisation. 

• Provides a broad range of landscaped grounds 
construction and maintenance services. 

- Secure contract base with a guaranteed level of 
income for at least two years. 

• Turnover {Year to 31 March 1994) - £1 .7 million. 

■ Operates from 8,000 square feet leasehold factory 

unit and includes extensive range of plant and 
equipment 

• Skilled, experienced workforce of 59 employees. 
For further information, contact lan Dnrie or 

1 Douglas MIHcan at 

Price Waterhouse, Albany House, 58 ABmny Street, 
Edinburgh EK13QR. 

Tel: 831-557 9980 Fax: 031-557 3291 

Price Waterhouse O 

AottwMd by ta mature ol Chufend AccowMs la Eogtrod ad 
•Mo* lo any an ImMtant buSms*. 



rszs; 





HgTB,lBRffiE8UC»aGDPN0PB(IYWCaAUSTS 


ROBERT BARRY & c„. 


On tha instructions of the mortgagees 

THE STUART HOTEL 

CROMWELL ROAD, LONDON, SW7 

□ Prominent eye-catching position on major route 
into Central London from Heathrow & the West 
Close tube station, ideally placed for West End. 

□ 49 letting bedrooms (41 en suite). 

□ Completely self contained restaurant on ground 
& basement, currently unused. 

□ Budget tourist business with enormous 
potential. 

Freehold offers sought 

TEL: LONDON OFFICE 071-491 3026 


GARDEN CENTRES 
UNIQUE OPPORTUNITY 

Five Prime Leasehold Sites in South East England 
Profitable Turnover in Excess of £6.5m 


Principals only please write to Box: B33S2 Financial Times. 
One Southwark Bridge, London SEl 9HL 


U.SJL DISTRIBUTOR 
COLLECTIBLES & GIFTWARE 

♦ WeD established -40+ years ♦ Supplying up-market retailers 

♦ Sales $15 nriltian + TA» h 1 strategic base for E.U. dis tri b u tor OR 

manofacfcmTjr to eflteriexpand into U.S- marketplace. 

All replies trmled in the STRICTEST CONFIDENCE. 

KENYON BUSINESS SERVICES 

30 Tolbooth Street Nigel Kenyon 

Forres Tel: 0309-641-500 

Moray IV36 OPH Fa*: 0309-676-106 


For Sale 

Waiuotouswg, Freight Forwarding and Haulage Company 
B ased in the MkUaads, this well exabliehcd company has an annual turaovex in the 
legion of £4 -5m. with pre-tax profits in excess of £2fl0fc. The co mpa ny speciaUsw 
in total logistics tat the textile, food, toy and electrical component secttri. 100 % of 
the company is available, with [he coircnl management wishing to stay an. 

For farther itlaiis write AR 

Bax B3354L Financial Times, Ofiac Scwthwjxt Bridge, Loodoa SEl 9KL 


BATH - Quality 13 bad BOB busInMS. 
Ownerx* axcalent Oil Garden, parting. 
emptiU proffia. CTBOOOO freehold. TN! 
Robert Bany & Co (028^641642 


10 0+ UVE BUSINESSES FOR SALE 
ondaaiesi^BaaecsVnaghdy^ 282 HO* 
Fioc 0717083*64 


AS AtartBcaami hootaqgi are accqiled sobicct la on aana Tenns and Ctindiinii. eopia of 
wbirii nc avagable by wridne to The Ati m t fctm effl Pwntactioc Pfceetor. The Fsaocial Times, 
Ore>Sowhw»ik Bridge. LootteoSEl 9HLT«it4471 873 XXXI fee +44 71 873 3064 


NEW VmiCXE FRANCHISE 

FOR SALE 

Manufacturing group wishes 
indispose of non -core volume 
Japanese car franchise. Prominent 
location within major city. 

Write lo: Bn B3338L feudal Time*. 
One Snmhwjft Bndpe. Undoo SEl 91 tt. 


Highly Profitable 
ladies designer wear boutique 
in Kent, currently taking 
£440,000 per annum. 

For sale as business and 
or with freehold. 

Fax: 0252 629859 





















12 


FINANCIAL TIMES TUESDAY SEPTEMBER 6 IW4 


TECHNOLOGY 


Geof Wheelwright meets the man 
who coined the term ‘cyberspace’ 

Superhighway in 
need of a route 


T he technologists, politicians, 
and policy tbinktanks have 
all had their say on the 
information superhighway. Most 
agree that it will not only be a 
place to work, but also to play. 
F ilms , books and music are all 
expected to become widely accessi- 
ble "on-line'' as the rush towards 
the information highway becomes 
a traffic jam. 

But what of the artists whose 
work is supposed to become a fea- 
tured attraction on this journey? 
Aside from the announced corpo- 
ra tist objectives of movie moguls 
such as George Lucas and Steven 
Spielberg, little has been heard 
from the artistic (creative) com- 
munity. 

A fresh perspective comes from 
William Gibson, the Vancouver- 
based author who coined the term 
"cyberspace" in the mid-1980s in 
his best-selling science fiction 
novel Neuromancer. 

Gibson says the whole notion of 
an information highway is mis- 
conceived. He is firmly of the 
opinion that all of the hoopla is 
nothing more than an attempt by 
industry to sell us things we don’t 
want and by governments to be 
involved where they really aren't 
needed. “My feeling is that it all 
originates from an ad agency 
somewhere - which is basically 
the US government,” he says 
wryly. “The notion of an informa- 
tion highway is a bogus metaphor 
- what they are offering is a lot 
more like a [shopping] mall." 

Gibson also believes that busi- 
ness people and politicians have 
no concept of why the Internet - 
the best example yet of a so-called 
"information highway” in action - 
is such a success, with an esti- 
mated 30m users worldwide. 

'The Internet is strange. It 
doesn't make any money. It is 
transnational, beyond anyone’s 
controL It is the great anarchist 
event.” says Gibson. "If what 
these guys [in governments and 
industry] are calling the informa- 
tion highway is an infrastructure 
upgrade [to fibre-optic cabling and 
high-speed switching systems] 
that's great” But if they want to 
create a system that is controlled 
and generates business, “it won’t 
work”, he warns. 

He doubts that the information 


highway will be commercially via- 
ble until whatever is behind the 
growth of the Internet is better 
understood. "Is it an historical 
anomaly, or is there some inher- 
ent value in the technology used 
to create it?” he asks rhetorically. 

Gibson says that the mystery of 
the success of the Internet is 
likely to prevent it from being 
completely “hijacked” by commer- 
cial interests. "The commercial 
interests are looking at this as a 
medium like television,” he notes. 
“But it is actually much more like 
a language than a traditional 
medium of communication." 

Gibson says tt is the universal- 
ity of the Internet that makes it 
similar to a language - it Is open 
to everyone and used by all man- 
ner of people. This universality is 
evident when you start browsing 
around the discussion areas - 
which include everything from 
pornography to religious funda- 
mentalism to topics in the news. 

The Internet also provides the 
means to break down government- 
imposed barriers. During the dark- 
est days of the 1991 failed coup 
attempt against Mikhail Gorba- 
chev in the old Soviet Union, for 
example, it was the Internet that 
provided an international route 
out for many messages about 
what was really happening. 

Despite its usefulness as a mech- 
anism for free speech, Gibson says 
it is still hard to define what any- 
body means when they talk about 
an information highway. He sug- 
gests that the technology underly- 
ing any "information highway” is 
currently akin to the many 
mechanical devices designed in 
the Victorian era to achieve cine- 
ma-like effects before the first 
really effective uses of film tech- 
nology arrived. 

He adds that this is partly 
because the potential of the vari- 
ous converged technologies is not 
really apparent until the conver- 
gence takes place - and suggests 
that if you look back to the turn of 
the century and read the Victori- 
ans' visions of what life would be 
like in 2000, you get some idea of 
how the public fascination with 
the possibilities of emerging tech- 
nologies often outstrips any kind 
of realistic analysis of what the 
future might hold. 


T he technological distinc- 
tion between biotechnology 
and pharmaceuticals has 
become so nebulous that 
many people in the industry now 
differentiate simply between large 
companies, mostly pharmaceuticals, 
and small companies, mostly bio- 
technology groups. 

Drug discovery methods in the 

two fields are merging to create a 

new multi-faceted approach. “Phar- 
maceuticals aie starting to look at 
biotechnology not as a different 
industry but as part of their indus- 
try,” says Jeremy Levin, president 
of New York-based Cadus Pharma- 
ceutical "And biotechnology com- 
panies have realised that they have 
a lot to learn from, phamw w yiriti 
companies in terms of drug discov- 
ery methods.” 

The result is a hotch-potch of 
tools ranging from structure-based 
drug design - crystallising and 
X-raying a molecule to come up 
with a computer model - to robotic 
screening, using robots for 
high-speed random testing. 

Pharmaceuticals are quickly 
adopting what were once considered 
biotechnology methods. Bristol- 
Myers Squibb of New York, for 
instance, says it used computer- 
based design, traditionally a bio- 
technology tod, to help it come up 
with one of its best-sellers, the 
hypertension drug Capoten. 

Biotechnology companies are 
becoming adept at traditional phar- 
maceutical strengths such as chem- 
istry. The boundaries between the 
two industries have become so 
foggy that Chiron, a large Califor- 
nian biotechnology company, is 
now providing chemistry assistance 
in a joint venture with Syntex. a 
neighbouring pharmaceutical 
group. "We’re doing the chemistry, 
Syntex the biology," says Walter 
Moos, vice-president of Chiron 
Technologies. “That’s not the way it 
usually works, but It just shows you 
how weak the divisions are these 
days.” 

Until recently, many biotechnol- 
ogy companies scorned pharmaceu- 
ticals’ old method of random screen- 
ing as nothing more than a game of 
chance. Pharmaceutical companies 
test hundreds of thousands of com- 
pounds in a laboratory until they 
achieve the desired chemical reac- 
tion. 

Biotechnology companies 
believed they could find cures in a 
more direct manner. Structure- 
based design - sometimes called 
rational drug design - allowed them 
to look at molecules in detail. The 
answer, many believed, was to 
study the particular molecular site 
in the body where binding was 
desired, and design a molecule to fit 
into it. Biotechnology companies 
hoped to produce molecules like 
pieces of a jigsaw puzzle, creating 
an exact tn ^tch in the right place. 
The last few years have- revealed 



Compteroentary modedna: drug discovery methods are coming doaar together 

Hand in 


hand 


The barriers between biotechnology 
and pharmaceuticals are gradually 
disappearing, says Victoria Griffith 


weaknesses in the computer-based 
approach, however. Determining 
the structure of a site is difficult It 
often depends on being able to turn 
a floppy protein molecule into a 
crystal for analysis. But the struc- 
ture the computer software predicts 
will fit into the structure simply 
may not Scientists often discover 
the model’s w eakness es as soon as 
they begin totting in the laboratory. 

Even if the new molecule fits into 
a site, it may not lead to a cure, 
especially for complex diseases such 
as cancer, arthritis or Aids. “The 
idea was that by targeting a single 
molecule, you could stop a disease," 
says Levin, “but most illnesses are 
a lot more complicated than that” 


While scientists were coming to 
grips with the weaknesses of com- 
puter-based design over the last few 
years, pharmaceuticals’ t raditional 
screening methods were undergoing 
a renaissance. Sophisticated robot- 
ics. for instance, mean that compa- 
nies can now screen compounds far 
faster than previously. 

"It’s like g ambling ," says Prabha 
Fernandes, vice-president of bio- 
molecular screening at Bristol- 
Myers Squibb. “The more you play, 
the better the chances of getting a 
hit" 

Drug companies are also starting 
to adopt screening methods which 
bundle dozens, even thousands, of 
compounds in a single test tube. 


Those that get no reaction are 
immediately discarded, rapidly nar- 
rowing the field. 

Although the screening methods 
are becoming more sophisticated, 
they are increasingly viewed as just 
one tool in the drug discovery pro- 
cess. Computer-based design may 
not be perfect but it can provide 
scientists with key leads in their 
seareh for the right molecule 

“What we’re seeing is an inter- 
play between screening and rational 
drug design,” says Marilyn Hartig, 
head of external science and tech- 
nology at Bristol-Myers. “The meth- 
ods get worked and re-worked in a 
cycle until you get the molecule you 
want” 

The biotechnology firm Procept 
for example, uses structure-based 
Hwag n to come up with a "lead” - a 
clue as to what the right molecule 
will look like - then follows up with 
extensive screening. "We define 
shape, and grooves and com- 
pare to our existing database.” 
says James Jenson, the group's 
chief scientist. “Then we screen 
only the molecules we think have a 
good chance of working” 

Biotechnology methods can also 
be used to toip build up a "library” 
of molecules for screening. lib- 
raries - databases of natural and 
synthetic compounds that can be 
tested for effectiveness in treating 
certain disease s - are becoming a 
priority as screening regains 
ground. Pharmaceutical companies 
usually hold Libraries of hundreds 
of t-hmiganris of molecules. Biotech- 
nology c ompani es are Starting to 
catch up. Chiron, for instance, 
rilaims its library now compares in 
size with that at man y of the large 
pharmaceutical groups. 

The question remains whether 
the new multi-faceted approach to 
drug discovery is just an interim 
step as the industry waits for struc- 
ture-based design methods to 
mature, “national drug design is 
getting stronger and will one day be 
able to stand alone,” predicts Peter 
Johnson, president of southern Cal- 
ifornia's Agouron, which relies 
heavily on computer-based design, 
but has, over the last few years, 
boosted its screening capabilities. 

Meanwhile, the increasing com- 
plementarity of the drug discovery 
methods of biotechnology and phar- 
maceutical groups will probably 
help stimulate more collaborations 
between the two industries. 

Non-tec hnologi cal distinctions 
between biotechnology and pharma- 
ceutical groups remain dear. Phar- 
maceuticals have the capital many 
biotechnology companies desper- 
ately need. Biotechnology groups 
have the agility and entrepreneurial 
attitudes of smaller companies. 
Both need each other, and with 
each side crossing increasingly into 
the technological hemisphere of the 
other, collaboration should become 
even more fruitfUL 


Heat 
of the 
moment 


C eram Research, a 

consortium of ceramic 
manufacturers and 
electricity supply companies, is 
testing kiln technology that will 
provide savings in energy, time 
and spoilage. 

In the UK alone the annual 
energy saving coaid amount to 
£I2m, according to Buth Wroe 
of EA Technology, the company 
managing the project The 
potential savings in Europe 
would be about 10 times as 
much. 

Microwave-assisted gas firing 
(MAGF) saves energy because 
microwaves heat ceramic objects 
votumetrically (uniformly). 
Volumetric heating eliminates 
the temperature stresses that 
occur as heat is conducted into 
the object from the surface in a 
conventional kiln. 

The absence of beat stress 
means temperatures can be 
raised much more rapidly, 
reducing firing time. Even 
though microwaves are more 
expensive, the energy cost 
(typically 8 per emit of the 
production cost) can be reduced 
by np to 40 per cent, according 
to Wroe. 

Ceramics do not absorb 
microwaves at low 
temperatures, so they cannot be 
fired efficiently with 
microwaves alone. MAGF uses 
conventional gas firing to raise 
the temperature to the point at 
which microwaves become 
effective. It may be possible to 
add microwave assistance to 
conventional kilns. 

The trials for the ceramic 
manufacturers include the 
construction of three kilns. The 
largest will be a 18-metre tunnel 
kiln for large-scale trial firings 
of consortium members’ 
products. The first kiln has been 
commtsskmed. 

Consortium members will 
have the right to a non-exclusive 
royalty-free licence to the MAGF 
technology. Non members will 
be ahle to license MAGF later 
for a price at least three times 
that of consortium membership. 
The list of consortium members 
is confidential, but Wroe says it 
fwrlnites about half the leading 
hit ceramics companies. 

Andrew Herrington 



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PEOPLE 


Crawford relocates to 
Scottish Enterprise 


Scottish Enterprise, the 
development organisation for 
Scotland outside the High- 
lands, has put most of its key 
operations Into a single unit 
and made Robert Crawford, 
below, its managing director. 

Crawford, 43, is currently 
director of Locate in Scotland, 
Scotland’s inward investment 



agency. 

The new unit, called the 
national operations group, will 
incorporate Locate in Scotland, 
as well as Scottish Enterprise’s 
Scottish and international 
operations division, run by Bob 
Downes, and Its business 
development division under 
Russel Griggs. A new director 


will be sought for Locate in 
Scotland. 

The new group is being cre- 
ated by Crawford Beveridge, 
Scottish Enterprise's chief 
executive, to integrate differ- 
ent parts of the organisation 
dealing with businesses. While 
foreign companies wanting to 
set up plants In Scotland deal 
with Locate in Scotland, those 
wanting to trade with Scottish 
companies may go to Scottish 
Trade International, part of 
Scottish and international 
operations. 

Robert Crawford will now be 
in charge of a big chunk of 
Scottish Enterprise’s headquar- 
ters in Glasgow, though most 
of the organisation's £450m 
budget is spent by the 13 local 
enterprise companies all over 
southern Scotland. 

He has had a successful 
three years running Locate in 
Scotland; prior to that he was 
head of its operations in the US 
where he helped persuade Sun 
Microsystems to locate its 
European plant in Scotland. 

Crawford was educated at 
Strathclyde university and was 
then a Kennedy scholar at Har- 
vard. 

After a spell as research offi- 
cer for the Scottish National 
party he did a PhD at Glasgow 
university, then spent a year 
with Citibank and three years 
with the Fraser of Allander 
economic institute in Glasgow. 


Eadie tempted by fund 
management role 


Colin Day, chairman of 
Henderson Pension Fund Man- 
agement (HPFM) is a very 
happy man, having secured the 
agreement of Dugald Eadie to 
join as managin g director of 
HPFM. 

Eadie, 50 next month, is 
acknowledged as one of the 
leading international figures In 
measuring Investment perfor- 
mance, having been with the 
Edinburgh-based Wood Mac- 
kenzie since 1968. He became a 
partner of the firm, in 1973. 

Wood Mackenzie was 
acquired by Hill Samuel in 
1984, whereupon the firm’s 
computers services business 
became a separate entity, 
known as WM Company, with 
Eadie as Its chairman. WM 
Company was in turn acquired 
by Bankers Trust in 1987. for 
£9 .8m. 


In May this year it was 
reported that Eadie was stand- 
ing down as chairman of WM, 
but would continue as a non- 
executive director and senior 
consultant 

Eadie is a figure closely asso- 
ciated with the creation of the 
UK investment performance 
measurement industry, as well 
as one of its leading exponents 
- hence the jubilation of Colin 
Day at getting him to join 
HPFM from November L 

The European Federation of 
of F inancial Analysts’ Societies 
(EFFAS) recently appointed 
Eadie to establish a permanent 
commission on performance 
measurement 

Eadie too is keen to start his 
new role, which will be much 
more of a business develop- 
ment function. 

See Observer 


Hampson 

powers 

onwards 

Chris Hampson, former 
director of Imperial Chemical 
Industries, is to become chair- 
man of Yorkshire Electricity 
in the latest appointment of a 
relative outsider to one of the 
power industry’s top jobs. 

He is taking over from John 
Tysoe, who steps down in 
October after nearly 30 years 
in electricity. 

Hampson’s appointment fol- 
lows that of Sir Bob Reid, Brit- 
ish Rail chairman, as chair at 
London Electricity, and Nigel 
Rudd, chairman at conglomer- 
ate Williams Holdings, as 
chairman at East Midlands 
Electricity. 

Most chief executives at the 
12 regional electricity compa- 
nies have come up through the 
ranks, hut relative newcomers 
include Mike Hughes at Mid- 
lands and John Devaney at 
Eastern. Hampson joined 
Yorkshire’s board earlier this 
year as a non-execotive direc- 
tor, after a career with IC1 
including spells in Canada and 
Australia. 

■ Sir Geoff Mulcahy, executive 
chairman of Kingfisher, has 
joined the Anglo-French joint 
board of Eurotunnel as a non- 
executive director, one of 
seven British Joint board mem- 
bers. 


Tec chief 

changes 

place 

Richard Guy, one of the most 
innovative chief executives of 
a Training and Enterprise 
Council, has been appointed as 
the new chief executive of 
Manchester Tec. 

Guy, 42, below, has played a 
significant role both locally 
and nationally in the activities 
of Tecs, which administer gov- 
ernment funded training and 
foster enterprise. 



He has been chief executive 
or South and East Cheshire 
Tec, one of the top Tecs accord- 
ing to government league 
tables, since 1989 when it was 
one of the first established. 
Manchester Tec is substan- 
tially larger than South and 
East Cheshire Tec and serves a 
more complex community. 


NON-EXECUTIVE 

APPOINTMENTS 

■ Trevor Bonner, a director of 
GKN, at AVON RUBBER. 

■ Roger Plnnington. former 
chief executive of Royal Ord- 
nance, as chairman at BRIT- 
ISH WORLD AVIATION 
GROUP. 

John Irish, former chairmaq 
and chief executive of Spar, as 
chairman at OSTA. 

Andrew Ball has resigned 
from D.C. COOK HOLDINGS. 

Gordon Yardley has retired 
from AAF INDUSTRIES. 

Henry Lewis, co-founder of 
Action Computer Supplies at 
STANDARD PLATFORMS 
HOLDINGS. 

John Pront at BERRY 
BIRCH & NOBLE, having 
retired as finance director. 

■ Richard Chapman, principal 
of Kingsley chartered accoun- 
tants, as chairman of The 
WASTE COMPANY; Dick Gar- 
rett has retired. 

Robert Jolliffe, a former 


finance director of the com- 
pany, at AUTOMAGIC HOLD- 
INGS; Michael Pettit has 
resigned. 

■ Michael Garner, former md 
of Continuous Stationery, at 
SOUNDTRACS. 

■ Danny Kitchen, formerly 
with Investment Bank of 
Ireland, and Rory O’Hanlon, a 
former minister of health and 
for the environment, at KING- 
SPAN GROUP. 

■ Bill Henderson, retired from 
ULSTER TV. 

■ Graham Waldron, chairman 
of Headlam Group, at RYLAND 
GROUP. 

■ David Carruthers, md of the 
piston products and engine 
parts aftermarket division of 
T&N, at YORKSHIRE BUILD- 
ING SOCIETY. 

■ David Sebire, resigned from 
HENRY ANSBACHER & Ca 

■ Stephen Cockbarn and 
Brian Holford- at LAZARD 
SMALLER equities invest- 
ment TRUST; Bob Smith and 
John Williams have resigned. 



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FINANCIAL TIMES TUESDAY SEPTEMBER 6 1994 

Something 
stirs in the 
southern 
woods 


ARTS 


William Packer 
sculpture park on 


T he Idea of the Sculpture 
Paric is not exactly new. 
Sculpture, after all, has 
been an art of the 
out-of-doors since art 
began, and the principle «y»t con- 
temporary work in particular may 
be shown to a dvantage in a sylvan 
or rural setting is a modem com- 
monplace. To think of the progress 
from the (rid London County Coun- 
cil's pioneering shows in Battersea 
Park to the present Sculpture Trails 
through Grizedale Forest and the 
Forest of Dean, and to the York- 
shire Sculpture Park at Wakefield, 
is to make the point 
But that is not to say we have too 
much of a good thing The York- 
shire Sculpture Park may now be 
one of the most popular cultural 
attractions in the entire north of 
England, but there is nothing yet of 
similar scope and permanence in 
the south. Whether or not the Hat 
HIU Sculpture Foundation at Good- 
wood will now supply the defi- 
ciency, we shall see. One swallow 
may not malm a summer, qp a 
short inaugural season hardly 
achieves a policy, but the Initial 
commitment is nonetheless impres- 
sive, with gim already raised 
more to come from public and pri- 
vate sources. 

Wilfred and Jeannette Castn have 
bear patrons and collectors of con- 
temporary art for many years. 
Needing more space, they bought 
Hat Hfll Copse four years ago, a 
modem house standing in some 20 
acres of woodland on the southern 
slopes of the Sussex Downs, close to 
Goodwood House. Their fo undation 
sprang from that move. It was set 
up in 1991 as a registered charity. 


welcomes a new 
the Sussex Downs 

Now it has a newly -built education 
centre and gallery, a stateof-the-art 
electronic archive, a resident cura- 
tor. Rides and walks have been cut 
through the forest, clearings 
cleared, sculptures begged, bor- 
rowed or commissioned. 

It is a brave undertaking indeed 
and, for the moment, beyond criti- 
cism. The stated aims are unexcep- 
tionable — •'to promote the under- 
standing, enjoyment and 
development of contemporary sculp- 
ture; to support artists and design- 
ers; to act as a catalyst and foots 
for siting sculpture in the open air." 
We may boggle a bit at the thought 
of the focused catalyst, or perhaps it 
is a catalytic focus. A question or 
two are begged - does contempo- 
rary sculpture really need such spe- 
cially promoted understanding and 
enjoyment: such focnsed siting? But 
it an bolls down to Good Works, 
and good hick to them. 

It looks very new, the paths still 
rather bright and unweathered, the 
turf new-laid, the tracks and rides 
still a little stark. Nature will 
recruit herself soon enou gh and , in 
a second season, all will seem long 
established. But, in the copse’s wil- 
der parts, are not some of the set 
sites for sculpture now just a little 
too well-cleared and fixed? We hear 
of these grounds having been spe- 
cially landscaped to the purpose, 
yet it is always hard to get these 
things right first time. Just as in 
moving into a new house, might it 
not have been wiser to leave the 
pattern of use to declare itself by 
degrees over a year or two, as differ- 
ent shows and new worts reveal 
fresh aspects of the woods them- 
selves? 



Art in the country: Nigel Hall’s ‘Soglio’ (1994) made Cram corten steel in the grounds of Hat Hill House at Goodwood 


Certainly, for the moment, the 
better sitings are either those in the 
older, more open and formal parts 
of the gawton - qidi as Nigel Hall's 
“Soglio” - a huge wedge and circle 
of rusted steel, or those more secret 
and discreet within the woods, hi 
this latter respect, wntimn Turn- 
bull’s totemic “Spade Venus’’, Peter 
Randall-Page’s carved limestone 
lumps, Andy Goldsworthy's “Herd 
of Arches" that prances through the 
wood beside the path, and David 


Nash’s tall and black “Charred Col- 
umn”, are all shown to particular 
advantage. It is a profound irrita- 
tion, by the way, that while a map, 
and not the most accurate, is pro- 
vided, the works themselves are 
neither numbered nor labelled, 
which can confuse and frustrate 
even the most experienced of 
visitors. 

We are promised, in coming sea- 
sons, a programme of temporary 
exhibitions and a changing display 


of particular works, as loans are 
replaced and sales made. This first 
show consists of mma 40 works fay 
some 80 sculptors. There is no 
theme to it, nor is it a survey in any 
real sense: rather it is simply a slice 
cut from the larger «>]»», and nnnp 
the worse for that It offers wort 
across the frill range of current 
activity, from the figurative to the 
abstract from carving and model- 
ling to construction and assem- 
blage, from the symbolic and 


totemic to the minimal and the con- 
ceptual. Stephen Cox, Phillip King, 
Paul Neagu, Ian Hamilton Finlay, 
Grenville Davey, Anthony Caro, 
Miffhapl Sandle, Bill Woodrow and 
Tony Cragg are among the estab- 
lished sculptors represented. Less 
familiar artists, too, are given their 
chance, while many distinguished 
names are conspicuously absent 
So be U, for the roll-call for once 
is not the point Hie immediate pur- 
pose of “Sculpture at Goodwood” is 


to demonstrate an opportunity and 
propose possibilities for the future. 
Mr and Mrs Cass are certainly to be 
congratulated on their initiative, 
and their Hat Hill Sculpture Foun- 
dation offered a real if cautious wel- 
come. 

■ Sculpture at Goodwood - Hat 
Hill Sculpture Foundation, Good- 
wood, West Sussex POI8 OQP: open 
by appointment until November 6 - 
Fax 0243-531853: sponsored by the 

Image Bunk- 


Lucerne loosens its collar 


T he Lucerne Festival 
has begun to shed 
some of its - inhibi- 
tions. Switzerland’s 
premier music festival - famed 
for its well-heeled audiences, 
its conservatism and predict- 
ability - is brandling out into 
activities which are less exclu- 
sive, more experimental. 

The popular hit this s umme r 
has been a late-evening 
open-air spectacle, in which 
audiences were taken round a 
theme-part of danoe, mime and 
lighting shows. There have 
been concerts of Swiss folk 
music and avant-garde jazz, 
plus a modified version of the 
street music competition intro- 
duced two years ago. The 
line-up also includes an impro- 
visation concert, designed to 
tom traditional concert ritual 
on its head, an d an event in 
which the renowned Swiss 
down Dimitri assumes the role 
of conductor. 

For many Swiss, all this has 
coma as a pleasant shock. The 
festival has long been identi- 
fied with imported culture - a 
parade of top-class orchestras, 
conductors afol soloists from 
anywhere but Switzerland. Its 
traditional public is rich and 
stuffy - the Wnd of people who 


NS* 


wear evening dress for a con- 
cert and pay SFrlSO (£90) for a 
ticket, ifraig have complained 
that they fed excluded, that 
the festival has little relevance 
to Lucerne and its people. 

That has begun to change. 
True, this year’s programme is 
as strong as ever on expensive 
International stars, headed by 
Maurizio Pollini and Anne- 
Sophie Mutter, the Berlin Phil- 
harmonic with Abbado and the 
Vienna Philharmonic with 
MutL Now there is a counter- 
balance - a series of unconven- 
tional events which have cap- 
tured the popular imagination. 

The ffhanp* has been engi- 
neered by Matthias Bamert, 
the Swiss conductor who 
became festival director three 
years ago. Lucerne and Bamert 
looked an odd couple. Bamert. 
52, has spent most of his career 
outside Switzerland, learning 
his craft under Stokowski and 
Szell in America, before emerg- 
ing as a leading interpreter of 
contemporary music in 
Europe. Since 1987 he has lived 
in London, working regularly 
with British orchestras and 
winning plaudits for his perfor- 
mances of British and French 
music. With, his taste for the 
off-beat and the new, he was 


the antithesis of what Lucerne 
stood for. 

But the two seem to get on 
welL Bamert began by pledg- 
ing to maintain the quality of 
the symphony concerts which 
underpin the festival's reputa- 
tion. This allayed any fears 
harboured by the Friends 
Organisation - a group of 300 
wealthy individuals who pay 
an annual subscription of up to 
SFr8»000 for priority booking. 
He has also proved a dab hand 
at fund-raising. Although 
absent for most of the year, 
leading the peripatetic life of a 
conductor, Bamert has 
increased sponsorship by five 
times. Privately-generated 
income now accounts for 35 
per cent of the festival's SFrfim 
budget Public subsidy is only 
5 per cent The rest comes from 
tax-offica 

Bamert argues as long 
as the festival remains finan- 
cially stable, he is free to 
experiment His aim, he says, 
is to make the festival less pre- 
dictable, and to give it a more 
local flavour. “Predictability 
kills curiosity. 1 don’t want 
people to have a fixed Idea of 
what (he Lucerne Festival is 
like. 1 want them to be con- 
stantly surprised.” 


He is adamant that Ins festi- 
val should not be interchange- 
able with others. “The way to 
malm it distinctive is to reflect 
the colour and flavour of 
Lucerne. That’s why I want 
local people to be involved. A 
third of this summer’s perfor- 
mances are geared to the peo- 
ple of Lucerne, rather than the 
international festival public. 
Only when everyone here feds 
•festival fever* will we have the 
vibrant festival I dream o£" 

Bamert Inherited a smooth- 
running organisation which 
catered well for a particular 
public. Sceptics say there was 
no need to change a successful 
formula, that Bamerfs innova- 
tions are gimmicks which have 
no place at an international 
festival. Change has involved 
risks. His theme-park spectacle 
this summer generated public- 
tty and goodwill - but if It had 
been rained off, the event 
would have been a financial 
and artistic wash-out He has 
pl a ced a hu ge amfimyt of faith 
in local “alternative” artistes. 

Another gamble was to hand 
the opening concerts to a new 
festival orchestra, made up of 
former members of the Euro- 
pean Community and Gustav 
Mahler Youth Orchestras. That 



Wigmore Hall season / Richard Fairman 

The chamber opens 


P resumably the 

audience for chamber 
music just goes on 
holiday in the 

summer. While the Wigmore 
Hall Is dosed, do other venue 
in London tries to fill the gap 
and the opening of the new 
season on the first weekend of 
September is greeted with 
pent-up enthusiasm. 

Advance bookings are said 
to be healthy this year. A 
series of concerts marking the 
tercentena r y of PurcelTs death 
(not strictly dne until 1995) is 
already heavily sold, 
suggesting that the Wigmore 
Han might profit from 
scheduling more e arly m usic. 
On its traditional ter rito ry of 
song recitals it has again put 
together an impressive line-up 
of singers for its International 
Festival of Song, which starts 
the season. 

No favouritism was shown 
at tite opening night Poor 
singers had been invited to 
share the platform on 
Saturday, wtoch is a clever 
way of making sore that fewer 
Important people feel slighted. 
Barbara Bonney, Anne Sofie 




Anne-Sophie Mutter 

paid off, thanks to the, skill and 
e nth usia sm of the players, and 
the experience of conductors 
SUCh as Kurt Sanrierling and 
Gennady Rozhdestvensky. 

Bamerfs challenge Is to weld 
together the old and the new. 
His programme theme this 
year - “Forms of Interpreta- 
tion” - was broad enough to 
embrace just about everything. 
Finding equally versatile 
themes for next year and 
beyond will test Bamerfs 
lively imagination to the fulL 

The festival runs until Satur- 
day. Box office: tel (41) 233080 
fox (41) 239464. 

Andrew Clark 


von Otter, Kurt Streit and Olaf 
B&r together for a 
light-hearted programme of 
vocal quartets by Brahms and 
Schumann. Hielnding — 
inevitably - both sets of 
Brahms’s evergreen 
LiebesliederWalzer. 

The singers came down from 
the Edinburgh Festival, where 
they had performed the same 
programme as a late-night 
recital, which was recorded 
live by EML Why the record 
company should choose the 
Usher Hall for its recording is 
a mystery. The Wigmore offers 
a far more appropriate 
ambience for intimate music 
like these drawing-room 
quartets and there was 
nothing but delight to be had 
from hearing them there, sung 
by four such high-quality 
voices. 

The quartet was perfectly 
balanced and admirably 
accompanied by Helmut 
Deutsch and Bengt Fonsberg. 
Barney's tender cradling of 
the soprano solos was 
particularly lovely. 

It was a shame that the 
warm glow they left was so 


quickly doused with cold 
water the following night 
Christiana Oelze and Hans 
Pete- Bloch witz performed a 
substantial selection of songs 
from Wolfs Spanisches 
Uedertuch and promptly 
disproved a theory gaining 
credence of late, namely that a 
good voice and a native 
command of German are 
sufficient to guarantee a 
Lieder singer who is worth 
bearing. Oelze and Bloch witz 
both have fine voices and both 
are German, but their Wolf 
was as bland as could be. 

Barely any song managed to 
pin down its central emotion 
with real decisiveness, though 
when Oelze did start to lead 
the way and get a grip on the 
more extrovert songs, the 
pianist Eric Schneider usually 
followed in sympathy. 

In this set of songs Wolf 
shows a remarkably sharp 
ability to probe pain and 
anguish, of which these two 
singers seemed blissfully 
unaware. After 90 minutes of 
nice singing one came away 
reeling thoroughly 
anaesthetised. 






U AMSTERDAM 

Concertgabouw Tonight Esa-Pekka 
Salonen conducts Los Angeles 
Philharmonic Orchestra In works by 
Purcell, Mozart and Sibelius. with 
piano soloist Emanuel Ax. 

Tomorrow, Thure: Riccardo Chaffly 
conducts Royal Concertgebouw 
Orchestra In Berg, Schoenberg and 
Mahler. Sat afternoon: Marts® 
Jensons conducts Rotterdam 
Philharmonic Orchestra In Prokofiev 
and Bruckner, with piano sotoist 
Mikhail Rudy. Sat evening: albert 
Kaplan conducts MM** to*. 
Symphony. Sun morning: Jan-Wlfem 
de Vriend conducts Gombatnmento 
Consort in Bach, Telemann an d 
Muffat, with contralto Bernards HnK. 
Sun evening: Ton Koopman 
conducts Amsterdam Baroque 
Orchestra In a Haydn programme 
{24-hour Information sennM^O-e 7 ^ 
4411 ticket reservations 020-671 
8345) _ 

Muaektheater Tonight a* 
(continues Ufl Sep 3°MfJ rnut 
Maenchen conducts Davw 
Pountney's production 
Macbeth of Mtsensk, with Eva-Marfa 


Bundschuh and Wffiard White. 
Tomorrow, Thurs. Fri, Sun afternoon 
(continues tiH Sep 21): Dutch 
National Ballet fn choreographies by 
Balanchine, Fernandez and Van 
Dantztg (Q20-625 5455) 

■ BRUSSELS 

Monnafe Tomorrow: Antonio 
Pappano conducts final performance 
of Kart-Emst and Ursel Herrmann’s 

production of La traviata, with 
HzbJeta Szmytka. Laurence Dale 
and Victor Ledbetter. Next 
production: Tristan und Isolde, 
opening Oct 1 {02-218 1211) 

Palais dee Beaux Arts Sun: Carlo 
Rizzi conducts Orchestra of the 
Monnafe In symphonies by Schubert 
and Mahler (02-507 620(9 


■ CHICAGO 

MUSIC 

Chicago's Lyric Opera and the 

Chicago Symphony Orchestra begin 
their 1994-5 seasons on the same 
evening - Sep 17. The opening 
opera production is Boris Godunov 
starring Samuel Ramey. The Lyric’s 
season also includes Graham Vick’s 
new production of The Rake's 
Progress, Fedora with Freni and 
Domingo. 11 ba/btere <S Stvigfia with 
Thomas Hampson, John Cox’s 
staging of Capriccto, Bernstein’s 
Candida, Alda and Siegfried . 
(312-332 2244). Daniel Barenboim 
conducts the first three weeks of 
Chicago Symphony concerts at 
Orchestra HaB, opening wfth a 
choral programme of Bmckner and 
Beethoven (Sep 17. 20, 27). Itzhak 
Perlman Is violin soloist on Sep 22, 
23 and 24, and gives a recital wfth 


Barenboim on Sep 26 (312-435 
6666 ) 

THEATRE 

Angels in America: this autumn sees 
new productions of Tony Kushner’s 
two-part epic in several American 
cities. The national touring version, 
directed by Michael Mayer and 
featuring Jonathan Hadary as Roy 
Cohn, opens at Chicago’s Royal 
George Theatre tonight (312-988 
9000) 

■ GENEVA 

Hugues Gall's final season at the 
Grand Theatre opens next Mon with 
a new production of Idomeneo, 
conducted by Anrfn Jordan and 
staged by Christopher Akfen, with a 
cast headed by Johan Botha, Patti 
Groves and Solveig Kringelbom. 
Repeated Sep 15, 17, 20, 23, 26, 28 
(022-311 2311) 

■ THE HAGUE 

Dr Anton PNtipezaal Gilbert Kaplan 
conducts the Hague Philharmonic 
Orchestra and Chorus on Fri in 
Mahler’s Second Symphony 
(070-360 9810) 

■ LINZ 

The annual Bruckner festival in this 
Austrian town opens on Sun with a 
performance of Bruckner’s Seventh 
Symphony by the Vienna 
Philharmonic under Riccardo Muti. 
Giuseppe Sinopoll conducts the 
Philharmorua Orchestra In two 
concerts (Sep 16 and 17), and the 
Orchestra do Paris wiB play 
Bruckner’s Ninth under Semyon 
Bychkov (Sep 23). Marek Janowsfcl 
wfll direct a concert performance of 


Wagner's Lohengrin, with a cast 
headed by Peter Seiffert and Eva 
Johansson (Sep 25). Other visitors 
include the Hagen Quartet, Christian 
Zach arias, Simon Estes and 
Maurido KageL The final two 
concerts on Oct 1 and 2 are given 
by the London Philharmonic under 
Franz Welser-MOst (0732-775230) 


■ LUCERNE 

The Luceme Festival ends this week 
with concerts by Klangforam Wien 
under Hans Zander, the Dresden 
Staatskapefle under Colin Davis and 
the Vienna Philharmonic Orchestra 
under Riccardo Muti. The final 
concert is on Sat (041-235272) 


■ MONTREUX 

Tonight’s Tchaikovsky concert at the 
Auditorium Stravinski is given by the 
Moscow State Symphony Orchestra, 
with cello soloist Matt Haimovitz. 
Carlo Maria GMtilni conducts the 
Orch e str a of La Scaia fn 
Beethoven's Fourth and Fifth 
Symphonies on Thurs. The final 
concert of the Montreux Festival is 
on Sep 23, when Martha Argerich is 
soloist with the Lyon Opera 
Orchestra under Kent Nagano 
(021-963 5450) 


■ ROTTERDAM 

Do Doeten Thurs, Fri, Sat afternoon: 
Mariss Jansons cond u cts Rotterdam 
Philharmonic Orchestra in 
Prokofiev’s Second Piano Concerto 
(MfkhaU Rudy) and Bruckner's Fourth 
Symphony. Next Mon: Valery 


Gergiev conducts Kirov Opera 
Orchestr a in concert performance of 
Verdi’s Otatio, with cast headed by 
Alexei Steblianko and Gafina 
Gorchakova (01Q-217 1717) 


■ VIENNA 

• The State Opera will remain 
dosed for technical alterations tfll 
Dec 14, but Riccardo Muti wBi 
conduct a series of performances of 
Cosi fan tutte at Theater an der 
Wien starting Oct 29. The Voiksoper, 

which opened last week for the new 
season, will host a State Opera 
Ballet production based on Lobar's 
Die lustige Witwe, first night Sep 19 
(51444 2969/51444 2959/513 1513) 

• Wolfgang Engel directs a new 
production of Shakespeare’s Titus 
Andronicus, opening at the 
Akademietheater on Sat. The 

Burgtheater’s new season has 
opened with a revival of Chekhov’s 
Three Sisters (51444 2969/51444 
2959/513 1513) 

• The Orchestra de Paris opens 
the main season of orchestral 
concerts at the Musikverein on Sep 
24 and 25 (505 8190) 


■ WASHINGTON 

MUSIC 

• B.B. King, Dr John and Muddy 
Waters Tribute Band head the bill in 
a blues festival on Thurs and Fri at 
Wolf Trap. Roger Dattrey sings 
music of The Who on Sun (703-255 
1860) 

• Leonard Sf&tkin, music 

efi rector-designate of the National 
Symphony, opens the orchestra’s 
new season at Kennedy Center 


Concert Hall on Thurs, Fri and Sat 
wfth a programme including 
Beethoven's First Piano Concerto 
(Helen Huang} and Copland’s Third 
Symphony (202-467 4600) 
THEATRE 

• The Rise and Fall of Little Voice: 
Jim Cartwright’s play about a young 
girt who mimics foe voices of pop 
female vocalists. Opens tomorrow at 
Studio Theater (202-332 3300) 

• A Perfect Ganesh: Terrence 
McNally's play about two New 
England matrons on a personal 
quest as they journey through India 
Opens at the Kreeger on Fri 
(202-488 3300) 

• Flyin' West this play about 
courage and frontier justice in late 
19th century America is produced 
by New Jersey’s aedaimed 
Crossroads Theatre. Opens on Sat 
at Bsenhower Theater {202-467 
4600) 

• Miss Saigon: the musical love 
story set against the backtpound of 
toe Vietnam war. Dally except Mon 
at Kennedy Center Opera House 
(202-467 4600) 


■ ZURICH 

Opemhaus Tomorrow, Sat Franz 
Weiser-Mdst conducts Erwin Pipfits' 
production of Rusal ka. with Gabrieia 
Benackova, Thurs, Sun: Tosca with 
Mara Zampieri and Nell Shicoff. Next 
Mon: Carlo Bergonzi song recital. 
Sep 17: first night of new production 
of La Censrentola, starring Cecilia 
Barfoll (01-262 0909) 

Tonhalle Tomorrow, Fri: Vladimir 
Fedos&eyev conducts Tonhalle 
Orchestra in works by Genka, 
Tchaikovsky and Shostakovich 
(01-261 1600) 


ARTS GUIDE 

Monday: Bertn, New 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 Time) 
MONDAY TO FRIDAY 
NBC/Super Channel: 

FT Business Today 1330; FT 
Business Tonight 1730, 2230 

MONDAY 

NBC/Supqr Channel: 

FT Reports 1230. 

TUESDAY 

Euronews: FT Reports 0745, 
1315. 1545. 1815, 2345 



NSC/Super Chaoneb 
FT Repots 1230 

FRIDAY 

NBC/Super Channel: 

FT Reports 1230 

Sky News: FT Reports 0230. 

2030 

SUNDAY 

NBC/Supor Channel: 

FT Reports 2230 

Sky News: FT Reports 0430. 

1730; 






M r Fernando Hen- 
ri que Cardoso, 
Brazil's former 
finance minister 
who left the government in 
April to contest next month's 
presidential elections, was hop- 
ing a quiet September would 
help consolidate his lead in 
opinion polls. He must be dis- 
appointed. 

On Sunday his successor at 
the finance ministry, Mr 
Rubens Ricupero, resigned 
after making embarrassing 
comments in an interview 
which was transmitted by mis- 
take on satellite TV. During 
the interview Mr Ricupero 
suggested he, and the govern- 
ment, were using Brazil's lat- 
est anti-inflation plan and its 
main component, a new cur- 
rency, the Real, to help Mr Car- 
doso win votes. 

Many observers long sus- 
pected the plan had electoral 
as well as economic objectives. 
But Mr Ricupero's a dmis sion 
of support for Mr Cardoso - 
which is illegal under Brazilian 
laws restricting the state's role 
in elections - has ignited the 
election campaign. Though 
attempts by Mr Cardoso's main 
opponents to have him disqual- 
ified are unlikely to succeed, 
their threat of a legal challenge 
has put his campaign an the 
defensive for the first time. 

Until now, Mr Cardoso has 
had a strong opinion poll lead 
over Mr Luiz Inacio Lula da 
Silva of th e leftwing Workers 
Party (PD. A survey by polling 
agency Datafolha, last week 
gave Mr Cardoso 45 per cent 
and Mr da Silva 23 per cent Mr 
Cardoso's advisers are still 
confident of victory- Mr 
Antonio Carlos Magalhaes, one 
of his main backers, insisted 
on B razilian radio: “This won't 

upset the campaign. People 
want stability and that is what 
they have with the Real plan.” 
But Mr Ricupero's resignation 
has raised questions about the 
future effectiveness of the 
Real- Not only has his depar- 
ture created uncertainty at an 
early stage of the new cur- 
rency, but the political motives 
behind its introduction have 
been exposed. In turn, that has 
led to questions about whether 
the chances of Mr Cardoso's 
opponents have improved. 

Mr Cardoso and Mr Ricupero 
have been the two men most 
closely associated with the 
ReaL The currency is part of 
an economic package which 
has been praised by econo- 
mists for its emphasis on 
spending restraint and a bal- 
anced budget, rather than 
political objectives. Since the 
new currency was introduced 
on July 1. the monthly infla- 
tion rate has fallen from 50 per 


Costly slip of 
the tongue 

Angus Foster on the resignation 
of Brazil’s finance minister 



Rubens Ricupero, who quit after an indiscreet disclosure on TV 


cent to about 5 per cent 

The Real's success so far has 
led to a rush of support for Mr 
Cardoso, who was polling only 
20 per cent before the curren- 
cy's launch. For Brazilians, the 
fall in inflation has marte a big 
difference to life styles. When 
monthly inflation was high, 
people spent their salaries 
immediately rather than see 
their purchasing power fall 
daily. Once inflation dropped, 
they could plan purchases, con- 
sume more or start to save. Mr 
Luiz Redone, a political scien- 
tist at the University of Bra- 
silia, says: “Among the poor, 
many families have not had 
the chance to eat this well 
since 1986." 

But the good news that has 
flowed since the Real’s intro- 
duction came to a halt last 
week when the inflation Gg- 
ures for August did not show 
as steep as fall as expected. 
Mainly for technical reasons 
connected with rent increases, 
the rate of price increases In 
the four weeks to August was 
5.46 per cent 

The figures prompted power- 
ful unions such as the Sao 
Paulo metal workers to call for 
immediate pay rises to make 
up for the impact of inflation 
on real wages since the Real's 
launch. This is a threat for the 
government, since pay rises 


could feed into higher prices. 

The job of countering that 
threat falls to Mr Giro Gomes, 
the governor of the northern 
state of Ceara who succeeded 
Mr Ricupero as finance minis - 
ter. He is respected for his suc- 
cessful - and honest - gover- 
norship of Ceara. Mr Gomes 
rushed to stress no policies 
would be changed. 


B ut the switch of min- 
ister will lead to 
uncertainty. More 
damag in g will be Mr 
Ricupero’s admission that he 
did not “have any scruples" 
deciding when or whether 
inflation indices were released 
according to his own advan- 
tage. In his interview, Mr Ricu- 
pero also suggested some indi- 
ces may have been doctored by 
opponents of the government 
that work in the department 
which gathers the figures. 

Inflation figures axe impor- 
tant in Brazil because until 
July they were used regularly 
- usually each month - to 
adjust salaries, taxes and 
prices to keep pace with infla- 
tion. The government hopes 
that under the Real, such 
adjustments will be made only 
once a year - and has so far 
been largely successful. The 
danger of Mr Ricupero’s com- 
ments is that if they under- 


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FTNANOLAL TIMES TUESDAY SEPTEMBER 6 1W 


mine the credibility of the 
inflation indices, the private 
sector will reintroduce regular 
adjustments, and Brazil's infla- 
tionary cycle could start a gain 

The prospect of a rise in 
inflation would be damaging- to 
Mr Cardoso, given his close 
association with the ReaL But 
the chances of a big pick up in 
inflation before the October 3 
contest is slim and many Bra- 
zilians, including most of the 
33m illiterate and semi-literate 
voters, may ignore the week- 
end's incident They may back 
Mr Cardoso because of the 
Real’s success so far, rather 
than its prospects. 

But Mr Ricupero's admission 
of the government’s support 
for Mr Cardoso have been 
seized on by Mr da Silva and 
his Workers' Party. Alleging a 
wider conspiracy between the 
government, business and 
media to elect Mr Cardoso, 
they have questioned the "eth- 
ics” of Mr Cardoso’s campaign. 
This is a promising theme for 
the opposition party because 
most Brazilians agree former 
president Fernando Collor, 
who resigned amid corruption 
allegations in 1992, won the 
1989 election against Mr da 
Silva thanks to business and 
media backing. If the opposi- 
tion can persuade voters that 
Mr Cardoso is being backed by 
the same alliance of interests, 
Mr da Silva’s campaign would 
be transformed. 

The Workers’ Party leader 
only needs to persuade some of | 
Mr Cardoso's voters to switch 
camp at this stage. Under Bra- 
zil's election rules, a candidate 
can win outright in the first 
round only if he or she attracts 
more votes than all their com- 
petitors combined. If not there 
will be a run-off between the 
two leading candidates on 
November 15. According to last 
week’s Datafolha poll, Mr Car- 
doso has only a 6 per cent lead 
over his combined opposition, 
scarcely a comfortable margin. 

The events of the weekend 
may, therefore, force Mr Car- 
doso into fighting a second 
contest Though opinion polls 
taken last week suggest he 
would still be the dear favour- 
ite to win, time might start to 
play against hfrn if the govern- 
ment is unsuccessful in hold- 
ing off wage claims and price 
increases in the next few 
weeks, inflation may even start 
to rise and undermine voters’ 
confidence in Mr Cardosa 

Mr Cardoso spent yesterday 
rahning his campaig n workers 
and assuring them his lead in 
the polls was safe. Even he 
would agree, however, that 
thanks to Mr Ricupero, Sep- 
tember will now be a nervous 
rather than tranquil month. 


Joe Rogaly 


PATEK PHILIPPE 

GENEVE 


No star to steer by 


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tt ali-hc-. i»f Swiizcrlninl - Sclnml BniiH’ln-> Nuiimivutlr 


Heigh-ho, here 
we go. Summer 
fun is over for 
us afl, not least 
President Bill 
Clinton. Look 
at him with 
kind eyes. It is 
a sorry sight. 
His work is nowhere near 
done, but he can hardly be 
enjoying it these days. Some- 
thing is going wrong. It is too 
soon to declare his presidency 
a failure, but it does not seem, 
from the eastern side of the 
Atlantic, to be on the road to 
glittering success. 

According to the most recent 
Time/CNN canvass of public 
opinion, only 40 per cent of 
respondents approve of the 
way Mr Clinton is handling his 
job. This, we read, is the lowest 
such score in the past 40 years 
for any president at the same 
stage of the game. Many of his 
policies receive respectable 
indications of assent from the 
electorate at large, but the 
esteem attached to bis name is 
demonstrably low. Democratic 
candidates in the congressional 
elections for which campaign- 
ing officially began yesterday 
have been advised not to asso- 
ciate themselves with their 
national leader. 

Some of Mr Clinton's misfor- 
tune is explicable by factors 
particular to himself. The 
Whitewater investigation, an 
endless prying into the details 
of land investments made long 
before he publicly aspired to 
the presidency, is one such. 
The outcome may be inconclu- 
sive, or it may wholly exoner- 
ate Mr and Mrs Clinton, but 
that is beside the point The 
president is weakened by the 
process. He has been further 
debilitated by the descent, 
almost to British levels, of pub- 
lic speculation about his past 
private life. 

A second cause of the presi- 
dent’s difficulties is beyond his 
ability to redress. The weak- 
ness of party discipline in the 


US le gislatur e has long been a 
matter of wonder to European 
parliamentarians. Democrats 
and Republicans, whether sen- 
ators or congressmen, owe 
their primary allegiance to 
their local districts and their 
own careers; support for a 
president of the same party 
comes after that. A popular 
president, espousing popular 
policies, can overcome congres- 
sional obstruction, but Mr Clin- 
ton did not win the necessarily 
overwhelming popular man- 
date, and consequently does 
not command sufficient clout. 
He has achieved a crime bill, 
sort of, but his star policy, a 
comprehensive health insur- 
ance scheme, 

looks bogged ™ 

down. Welfare Bill till! 

reform, prom- people 1 
ised during r r , 
the campaign, WSfflteCl 
awaits progress smilft 
on health. « 

These storms 3HCI AVC 

might have Blair 
been better . . 

weathered if UltenC 
the president miirh t 
had convinced 
the American 

people that he had an idea of 
where he was taking them. 
Perhaps he did when he 
started, but the evidence sug- 
gests otherwise. His foreign 
policy is inchoate, his domestic 
policy lamed, his strength of 
purpose uncertain. His long 
hesitation on the brink of an 
invasion of Haiti is one indica- 
tion of his inherent wobbli- 
ness; his tailoring of his Cuban 
policy to the niceties of Florida 
politics another. 

Mr Clinton has had impor- 
tant successes: the North 
American Free Trade Agree- 
ment, the Partnership for 
Peace strategy to enlarge Nato, 
the completion (although not 
yet the congressional ratifica- 
tion) of the Uruguay round of 
trade talks. None of them has 
been set in the context of a 
global strategy. That Is the 


Bill Clinton told 
people what they 
wanted to hear, 
smiled a lot, 
and won. Tony 
Blair plainly 
intends to do 
much the same 


trouble. By all accounts the 
president is a highly intelligent 
man, a quick master of a brief, 
consultative, fascinated by 
debate and policy detail. He is. 
however, possessed by the 
need to win political points 
with every move he makes; he 
cannot, or will not, take the 
risks leadership requires. 

There is a diouble-edged les- 
son here for centre-left chal- 
lengers everywhere. As to cam- 
paigning. follow the president; 
as to running the country, 
don't Mr Tony Blair, the new 
leader of Britain's Labour 
party, has closely studied Mr 
Clinton's 1992 campaign. The 
then governor of Arkansas 

spent several 

years establish- 
toil told mg himself as 

batthey "S£ 

to hear, crats. He 

st lot worked at 

bringing the 
1. iony party back 

lainlv from the hope- 

. less left 

1 IO ClO towards the 

e s am p political centre. 

After the long 
Reagan-Bush 
years, he campaigned on 
strong themes calculated to 
allay middle-class fears. He 
told people what they wanted 
to hear, smiled a lot, was 
blessed by the Intervention of 
Mr Ross Perot, and won. 

Mr Blair plainly intends to 
do much the same. It is a 
proven election-winning for- 
mula, which could, in spite of 
everything, deliver a second 
term to Mr Clinton in 1996, not 
to mention a Labour victory in 
the same year. It has done mar- 
vellously well for Mr Blair this 
s umme r, he appears to be as 
papular as ice-cream. If he does 
not melt, he could became the 
Gist Labour prime minister in 
nearly two decades. 

The US formula does not, 
however, deliver anything of 
true value once the votes are 
counted. I suspect - hope - Mr 


LETTERS TO THE EDITOR 

Number One Southwark Bridge, London SE1 9HL 

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

Intriguing model for future of UK unions 


From Mr Peter Gorry- 

Sir, As a practitioner in 
industrial relations for a global 
company, I am familiar with 
Robert Taylor's reporting, 
scholarly work - eg, “The 
Trade Union Question in Brit- 
ish Politics” - as well as his 
latest publication, “The Future 
of Trade Unions", reviewed by 
Howard Davies, director gen- 
eral of the Confederation of 
British Industry (“Bedrock 
trade unionism lives on”, Sep- 
tember 1). 

It seems to me that Mr 
Davies’s industry bias skews 
his observations in represent- 
ing the author's position 
regarding the attitude of 
employers. A specific quote in 
the review is “He [Tayior] con- 
trasts British employers’ 'com- 
mitment to deregulated labour 
markets' with the attitude ’of 
their European mainland, coun- 


terparts who have a sense of 
social and ethical responsibil- 
ity for the well-being of their 
employees’”. Mr Davies finds 
this generalisation “absurd 
and offensive". 

In context, the foil quote is 
“British employers’ commit- 
ment to the deregulated labour 
markets looks much firmer 
than that of their European 
mainland counterparts who 
have a sense of social and ethi- 
cal responsibility for the 
well-being of their employees". 
Certainly not an absurd obser- 
vation, and offensive to wham? 
In reality, transnational enter- 
prises manage work forces 
according to statutes of the 
member states in which they 
operate, and the “sense of 
responsibility” of businesses, 
as evidenced in northern 
Europe, may be the result 
imposed by law rather than a 


higher social consciousness. 

In Robert Taylor's conclud- 
ing chapter, notwithstanding 
his advocacy of the union 
movement, he is pragmatic In 
writing a prescription for the 
future. “The trade unions in 
this country have reached an 
important crossroads in their 
history. They need to crane off 
the back foot and take the ini- 
tiative", and he acknowledges 
that unions must add value “to 
the success of the enterprise in 
meeting the remorseless chal- 
lenges posed to it by global 
competition in the open mar- 
ket”. Pressures to increase 
shareholder value, cyclical eco- 
nomic downturns, and the real- 
ities of alternative sources of 
lower unit labour costs, cam- 
bine to have an impact even on 
enterprises with the most 
enlightened human resource 
programmes. Unions could 


j well provide a buffer between 
unilateral actions by the 
employer and employees’ col- 
lective best interests. 

Although I do not completely 
agree with all of Taylor's anal- 
ysis and conclusions (for exam- 
ple, the role of anions in pro- 
viding certain services outside 
the workplace and great expec- 
tations from EU directives). I 
believe he provides an intrigu- 
ing model for the future. 
Clearly, any institution would 
prefer to operate unencum- 
bered by outside influence; bet- 
ter then for business to 
develop a constructive partner- 
ship with a union than rely 
upon intervention by the gov- 
ernment or the courts in deter- 
mining the employer’s relation- 
ship with the work force. 

Peter E Gorry, 

78 Middle Valley Road, 

Long Valley. NJ 97853, OS 


Omission I No alternative to slowing consumption 


From Mr Ben PtmloU, 

Sir. I have just seen Alan 
Clark's hilariously splenetic 
piece about my Frustrate Their 
fSimrisA Tricks (Books, August 
27/28), in which I am presented 
as a kind of ageing and illiter- 
ate Dave Spart, whose extreme 
leftwing views belong in the 
1970s. The only puzzling thing 
is that the many quotes-out-of- 
context in Lord Clark's article 
do not include my sole refer- 
ence to him. On the very first 
page of the book I describe the 
Tory ex-minister as a former 
MP "of indisputably blimpish 
proportions " who has “written 
a book review backing a sug- 
gestion that Winston Churchill 
ruined the country”. 

But then again, he was prob- 
ably right If he had mentioned 
it, some unsporting socialist 
bounder might have accused 
him of tit-for-tat reviewing. 

Ben Pimlott 
9 Milner Place, 

London N1 ITN 


From Dr ART Kemasang. 

Sir, The recipe prescribed by 
Ambassador Clayton Yeutter 
(“ ‘Gatting’ the greens", 
August 2), that nations 
“become richer” first by letting 
their middle class rip before 
worrying about environmental 
issues, is the stock-in-trade of 
those who want to have the 
cake and eat it Not only is it 
erroneous, it also gives licence 
to the continuation of the 
ongoing environmental plun- 
der. This line of thought 
assumes that it is only the mid- 
dle class which cared about 
our environment It maltes no 


sense without blotting out the 
historical feet that it is pre- 
cisely as a result of the 
“growth” of the (west’s) middle 
class that we are now in this 
environmental mess. Sorely, 
plugging for more of the sairn», 
encouraging non-OECD peo- 
ples to adopt a "destroy first 
rebuild later” mentality, is, to 
put it mildly, irresponsible. 

It is true that to tell non- 
OECD peoples not to consume 
the remaining resources with- 
out substantially (note: l don't 
say “funda m e n tally”) changing 
our pattern of consumption is 
like telling others not to eat 


the fruits left in the common 
garden while we are not pre- 
pared even to slow down the 
rate at which we gobble them 
up. It is just as hypocritical to 
talk of “growth" and “expan- 
sion’’ while professing concern 
about the environment 
If we are sincere, we have no 
alternative other than to do 
the complete opposite: slow 
down our consumption rate. 
Then, we reason with non- 
OECD peoples to preserve 
what is left of their resources. 
ART Kemasang, 

50 Keswick Road. 

London SW15 2 JE 


Wrong theory to make a good cup of tea 


From Mr R SoU. 

Sir. Charles Jennings is In 
error in believing that reduced 
atmospheric pressure increases 
the temperature at which 
water boils (Business Travel: 
"The anatomy of a Club Class 


flight", August 29). As every 
schoolboy knows, water boils 
at a temperature below ioo°c 
when the ambient pressure is 
reduced, thus making it Him , 
cult to get a good infusion of 
tea or boil eggs. 


Little wonder that employers 
are worried about -the rise of 
scientific illiteracy. 

R Hall, 

9 Ormond Avenue. 

Hampton, 

Middx TW12 2RZ 


No real argument for local government change I Off target 


From Councillor Rick Tilling. 

Sir, I must respond to Coun- 
cillor Mrs Duddy (Letters, 
August 30). The current review 
of local government has been 
built on unsubstantiated asser- 
tion. No evidence has been pro- 
duced to demonstrate convinc- 
ingly that unitary local 
government is, per se, better 
than two-tier. There are many 
examples of the unitary system 
not working. 

Mrs Daddy says a unitary 
council in her area has the 
support of the business com- 
munity. Yet a Macclesfield 
Chamber of Commerce survey 
shows 43 per cent of businesses 
want no change, compared 
with 33 per cent that want a 
unitary Macclesfield CounciL 


Nor do the people of Maccles- 
field want change. In a new 
survey by the Harris Research 
Centre 70 per cent of people in 
Macclesfield support “no 
change”. Perhaps more signifi- 
cantly 77 per cent of Maccles- 
field residents consider that 
the present system of local 
government is successful, and 
only 13 per cent think that 
change is definitely needed. As 
for the Local Government 
Commission's two unitary 
Options for Cheshir e, no more 
than 6 or 7 per cent of Maccles- 
field people support either of 
them. 

According to the commis- 
sion, change in Cheshire would 
cost £23m to £29m; It could cost 
ram more to run, and savings, 


“if any", might be £4m. These 
costings are highly speculative, 
as we know, and there is every 
chance the costs of change will 
never be recovered. In the Har- 
ris survey 80 per cent of people 
are not prepared to pay more 
either for their local govern- 
ment services or to change to 
the system. 

Finally, she describes the 
two-tier system as an “anach- 
ronism”. Why, then, do all 
European Union countries, 
except Luxembourg, have mul- 
ti-tiered local government? 
Rick Tilling, 
deputy leader, 

Cheshire County Council 
High Croft, Delph Lane, 
Daresbury, Warrington. 

Cheshire WA4 4AN 


From Mr J David Morgan 

Sir, Rejoicing over the early 
retirement of Ros Heppiewhite 
(“Child Support Agency chief 
quits post early", September 3) 
is misplaced - in fact and in 
law. By convention, ministers 
are responsible, not civil ser- 
vants or ministerial appoin- 
tees. This time they have con- 
veniently passed the blame on. 

It is the flaws in the original 
legislation - and the directions 
given by minister to the Child 
Support Agency - winch has 
led to the problems and conse- 
quent mess. Ms Heppiewhite 
may have gone, but the prob- 
lems remain. 

David Morgan, 

838 Spinney Sill Road, 
Parklands, Northampton 


.IN 






Blair is aware of this. It is not 
worth winning an election If 
you do not have a dear pur- 
pose in doing so. Labour think- 
ing is naturally shaped by long 
contemplation of the causes of 
the party's dismal record of 
electoral failure since 1979. The 
pitfalls to avoid are often 
rehearsed. One. frequently 
referred to by the late Mr John 
Smith and his then deputy 
leader, Mrs Margaret Beckett, 
was the production of detailed 
policies. You must never do 
that, they said. The Conserva- 
tives would cost them, distort 
the results, and throw the fig- 
ures back in Labour's face. 

We will see how much or this 
obsession with post defeats 
governs the thinking of Mr 
Blair when he speaks at 
Labour's annual conference 
next month. His fixation must 
necessarily be with electoral 
victory, but he is sophisticated 
e nou g h to know that office is 
not all. For confirmation, he 
has only to consider the case of 
Mr John Major. In spite of his 
shortcomings, the prime minis- 
ter has consistently steered by 
the light of low inflation. He 
has also shown determination, 
and courage, in seeking peace 
in Northern Ireland. If the lat- 
ter be sealed, the two achieve- 
ments will be recognised by 
historians, if not necessarily 
rewarded by the voters. 

The big conundrum remains 
unresolved. In what direction 
will Labour steer if it wins? 
Never mind the details. Let us 
have just sufficient to assure 
us that Britain's refreshed 
party of the centre-left Is not to 
follow the Clinton Democrats 
down the path to disappoint- 
ment Would Labour lapse into 
a strategy of allowing a little 
bit more inflation, in the hope 
of faster growth and more 
jobs? Would it seek to redis- 
tribute some income or wealth? 
What would be its principal 
lodestar? If we are not to know, 
can we be sure that the puta- 
tive next prime minister does? 


r s } i 

yr, 

■» i < 


-uMiij 



financial times Tuesday September 6 1994 



financial TIMES 


tOThS SS e ^ thwark Brid S e * London SEI 9HL 
' 071 ~ 873 ^000 Telex: 922186 Fax: 071-407 5700 

Tuesday September 6 1994 


Neither foes 
nor allies 


The Chinese foreign 
describes his country’s wanning 
relationship with Russia as “net 
thnr confrontation nor political 
alliance". Jfis choice of negatives 
is a remarkably honest assess- 
ment of the agreements signed in 
Moscow at the weekend by Presi- 
dents Boris Yeltsin of Russia and 
Jiang Zemin of China. 

The agreements themselves 
with the largely symbolic declara- 
tion that neither side would target 
nuclear weapons at the other, are 
modest, designed to tidy up the 
frontiers and clear up potential 
impediments to pragmatic trade 
a n d co-operation. But they do 
mark another useful stage in the 
Sino-Russian detente which has 
developed over the last decade. 

Good relations between Russia’s 
Car east and the bordering north- 
eastern provinces of f!hhm have 
become steadily more important 
in recent years as Moscow and 
Beijing have decentralised their 
economies. Deprived of the goods 
which used to be allocated by the 
central plan from distant Euro- 
pean Russia, the under-populated 
regions bordering Russia’s Pacific 
coast have welcomed the chart/** 
to buy cheap Chinese consumer 
goods in exchange for Siberian 
timber, furs and raw materials. 

The trade and other economic 
cooperation agreements signed at 
the weekend reflect mutual recog- 
nition of the beneficial nature of 
these links. Putting their trading 
relationship an a more formal and 
secure basis makes obvious sense 
Car both countries. 

Mutual recrimination 
For China, the concentration of 
economic growth on the coastal 
cities and the south has left its 
three north-eastern provinces 
eager for growing opportunities 
for trade across the Amur and 
Assuri rivers which form the often 
contested borders between the 
Asian part of R ussia and China. 
This two-way trade, much of it cm 
a private basis, rose sharply to 
over $7bn last year but has 
dropped significantly over the last 
few months. This follows mutual 
recrimination over shoddy goods, 
rising criminality and Russian 
security concerns over the pres- 
ence of increasing numbers of Chi- 
nese traders. 

The search, for a modus oroerafi 
between the great communist 
powers was given fresh impetus 


by Mr Mikhail Gorbachev. He, and 
after him Mr Yeltsin, *nHp^ the 
strategic confnmiatian with Nato 
and toned down the ideological 
and great power rivalry with 
China which for decades led to the 
stationing of over 600.000 Soviet 
troops along the 6.640km Sino-So 
viet border. 

Sino-Russian detente has 
allowed both countries to devote 
more of their resources to civilian 
purposes, although China has 
been far more successful to date in 
creating new wealth than Russia 
which has been bogged down by 
the immense difficulties of redi- 
recting its militarised industries 
into more productive use. 

Military hardware 

Given the difficulties of military 
conversion it is not surprising 
that Moscow is looking harder at 
potential markets for military 
hardware. Chirm, with, a much less 
sophisticated military industry 
and busily modermsing its armed 
forces, is a natural market for 
cheaper Russian arms whose sale 
will be facilitated by the latest 
agreement 

On other hand^ thg agree- 
ments do not bother to disguise 
the continuing existence of long- 
term strategic rivalry between 
Russia, China sqnri Japan in the 
region. Much of Russia’s Asian 
territory was conquered from the 
decaying Chinese Empire in the 
19th century. Many Russians fear 
that it is only a question of time 
before a revitalised China, with 
over 100m people In the three 
northern provinces alone, tries to 
win it back. To prevent this, Rus- 
sia needs to radise the wwinmir 
potential increase the popula- 
tion of a vast region with only 7m 
fohahitents and vulnerable com- 
munications along the Trans-Si- 
berian railway. Above all Russia 
needs foreign capital to develop its 
Siberian resources and is more 
likely to find it in Japan and the 
US than China. 

The latest agreement with 
China is a useful diplomatic 
achievement But Russia’s long- 
term fixture as a prosperous part 
of the Pacific run still depends 
upon coming to agre ement with 
Japan over the fixture of the four 
disputed Kurile islands and creat- 
ing the necessary legal and invest- 
ment framework for US and other 
investors to share in the develop- 
ment of Siberian resources. 


Time to end the 
rail dispute 


The summer holiday period is 
ending without a settlement in 
Britain's long-running rail dis- 
pute. ff i gnai staff will strike on 
Thursday, the 13th week of dis- 
ruption on the rail network. No 
negotiations are under way over 
their pay churn and Anther strikes 
are planned for the next two 
weeks. There is little sign of a 
return to worts by the overwhelm- 
ing majority of signal staff who 
continue to support their union, 
the RMT. 

Rail track, the state-owned com- 
pany tha t runs British Rail’s track 
and signalling operations, contin- 
ues to use supervisors, non-stri- 
king signalmen and other quali- 
fied raH staff to provide services 
on strike days. It may succeed in 
running more trains an Thursday 
than on previous strike days. But 
the scope for ftirther improve- 
ments is limited without a break 
in the strikers’ resolve. The stale- 
mate looks set to continue. 

Yet the strikes are in the inter- 
ests of neither staff nor manage- 
ment As in any industrial dis- 
pute, business will have been lost 
to the railways. Some pass enger s 
will continue to use the alterna- 
tive forms of transport they have 
adopted on strike days. Some 
freight customers will conclude 
that railways can never be reliable 

where rim e is of the essence. RMT 

members will be among the losers 
as a result . ... 

By contrast, those who wish to 
see less spent on the railways vml 
have been heartened by the 
strikes. Commuters have been 
able to get to work on strike days 
with less frequent services and 
few trains in the evenings. Towns 
and villages served by marginal 
branch lines have suffered no visi- 
ble loss fro m the absence of trams. 
The case for subsidising the cur- 
rent level of rail services has been 
weakened. 

vatisation challenge 
ie dispute win also make it 
h harder for the goyonmaat 
irivatise British Rail in the 
mediate future. The train oper- 

gcompanieshavelortminjons 

ounds by being unable Jo run 
ices on strike days. Their vuj- 

ibility to disruption at Rad- 
ik has been nnderlinedto 

intial investors. And the more 
train operators are md™- 
aeainst such costs, the less 


attractive RaOtrack will be to the 
private sector. Opponents of priva- 
tisation such as the RMT will 
rejoice, but the government has 
been foolish to allow the dispute 
to drag on. 

The strikes cannot be allowed to 
continue into the autumn. Rail- 
track must act now to bring the 
dispute to an end. If there is no 
agreement before the end of Sep- 
tember, ai gnahwm stand to lose 
valuable pension rights when Brit- 
ish Rail’s pension fund is divided 
up between the successor rail 
companies. They are therefore 
likely to be ready to end the dis- 
pute given sufficient cause. 

Flexible practices 

RaOtrack has already lost more 
than ElOOm because of the strikes. 
A private business facing such 
losses would increase its pay offer 
by enough to get the strikers back 
to work. This would be followed 
by restructuring to recoup the 
cost, through improvements in 
efficiency. Individual contracts of 
employment would be introduced, 
after giving the requisite notice 
and consulting as necessary, to 
encourage more flexible practi c es. 

Such an approach may no Ion- 
go- be an option, however. The 
government fears that a highe r 
offer - even if self-financing - 
would be seen as a defeat for its 
public sector pay policy. Its inter- 
vention In the dispute almost cer- 
tainly means that this is true: 
higher pay claims would follow 
elsewhere in the public sector 
where efficiency cannot be 
improved so easily. 

That leaves the sort of strategy 
which a leaked letter last week 
indicated that Rafflxack appears to 
be considering. This involves 
inviting individual signalmen to 
accept the offer on the table, sack- 
ing strikers and re-employing 
those who wish to return on indi- 
vidual contracts. Such an 
approach could cost Railtrack 
more than £J6m in compensation 
for not giving adequate notice of 
the change of working conditions. 
This would be embarrassing, not 
least because it is three times the 
annual cost of settling the RMT 
pay claim. However, it is a price 
that Railtrack - and the govern- 
ment - may have to pay to end a 
strike that incompetence has 
allowed to drag on for 13 weeks 
longer than was necessary. 


R ecession's fleeting but 
brutal invasion of west 
Germany swept away 
corporate profits and 
jobs on a dramatic scale. 
The en gineering industry alone last 
year lost DM7bn (£2^tm) - DM3,500 
for every employee. More than a 
third of the 3m Jobs created in the 
mid- to late-198Qs have disappeared 
sfnrp the onset of the slump in the 
final quarter of 10 9s 
Giants such as Daimler-Benz, the 
automotive and aerospace group, 
stumbled into their worst losses in 
postwar history. Dynastic family 
concerns such as the KSssbohrer 
group, which in exactly 100 years 
evolved from waggon-maker to bus- 
builder to break-up candidate, were 
dismembered. Towns such as 
Schweinfurt, home of the FAG 
Kii gpifjqrhpr h earings group, tum- 
bled from the peaks erf prosperity to 
unemployment hot-spots as their 
mainstay industries crumpled. 

In the nation at large, recession 
severely dented popular confidence 
in the notion that SO years of eco- 
nomic success and rising living 
standards automatically guaranteed 
more of the same. 

Yet, for all the corporate and per- 
sonal distress, the outcome hag not 
been entirely negative. Now recov- 
ery has taken hold it is clear that 
the shock of the precipitous crash 
from the 1991 peak of the post-unifi- 
cation spree has shaken industry 
and stirred it mtn action against 
underlying structural and competi- 
tive disadvantages. While recession 
created conditions which high- 
lighted structural weaknesses. It 
also sparked a concurrent national 
debate which appears to have 
resulted in a broad consensus In 
favour of change. 

As Daimler chairman Mr Edzard 
Reuter admits, business found 
with an opportunity to take speedy, 
radical actions “which would not 
have been possible in the past”. 

The most compelling evidence so 
far for the wrigtenno of 8 rr»TH»ngnq 
for ehang p hag hpgn the relatively 
friction-free acceptance of massive 
job cats, reductions in real wages 
and the loss of traditional employee 
benefits and privileges. 

These trends have marked a fron- 
tal assault on the most Obvious and 
most-discaased of Germany’s com- 
petitive disadvantages: high labour 
costs. Employers and unions, 
starting in the chemicals industry, 
agreed new flexible work-time arid 
pay structures which have started 
to improve unit fahnnr costs and 
machinery running thnes. 

Although little post-recession 
data is yet ready, the scale of Ger- 
many’s disadvantages compared 
with competitors can be judged by 
1992 measures, which showed Ger- 
man factory plant was used for an 
average of S3 hours a week - the 
lowest in the European Union. Unit 
labour costs in the automotive 


Experiences of recession have led to changes in 
corporate Germany’s strategy, says Christopher Parkes 

Setback, shaken 
and stirred 


German industry: bruised by the bad times 



Stuttgart: 

Gamany'svaWcteand 
aerospace ^ant 


SHTinnaHHHH 


BASF headquarters 

Ludnrfgshoten: 

one of Germany's top three 

pharmaceuticals groups 


industry were about 40 per cent 
highw than those in France, Japan 
and the US. 

While a rfpwr impr essio n of the 
impact of last year’s new labour 
agreements will not emerge until 
1995, p mrnfarfn g indications emer ged 
at the w eekend from the VCI chemi- 
cals industry association, which 
said average productivity in the sec- 
tor had risen by almost 11 per cent 
in the first half of thin year. 

Meanwhile, the job cuts are con- 
tinuing, maintaining downward 
pressure on labour costs. Daimler, 
for example, said last week that a 
further 8JJ00 places are to go next 
year after 26,000 this year. 

Employers continue to lay a large 
proportion of the blame for lost 
competitiveness at the door of 
aggressive trade unions, but confes- 
sions of past “mistakes" and “arro- 
gance” by agninr managers such as 
Mr Hilmar Kopper, chair man of 
Deutsche Bank , reflect an unusual 
readiness within the establishment 


to acknowledge that managpmp Trt 
financial institutions and politi- 
cians have maria an even more tell- 
ing contribution to Germany's 
international rifsarirantappg 

One such failing was the neglect 
of developing markets. Attempts 
are now under way to correct that 
fault, particularly in Asia, where 
potential demand for Germany’s 
traditional industrial products is 
strongest. Against the global trend, 
industry has relied doggedly on 
exports out of its high-cost domestic 
factories, rather than establishing 
manufacturing bridgeheads a broad 
At the same time, industry has 
focused most foreign investment 
awri sales effort on virtually satu- 
rated markets in neighboaring 
European countries. 

The automotive industry, the 
country’s leading foreign exchange 
earner, for example, relies heavily 
on the west European car market 
which is expected to expand only 1 
or 2 per cent a year for the foresee- 


able future. Meanwhile, Asia will 
generate 70 per cent of world mar 
ket growth. Managers in broad 
sweeps of German industry who 
looked askance at Volkswagen's for- 
ma* chairman Mr Carl Hahn, when 
he started investing in Chinese 
assembly plants in the mid-1980s, 
are now clamouring to follow as 
VW continues to build its market 
leadership in the People's Republic, 
with sales up 14 per cent in the first 
half of 1994. 

While it was not the only factor at 
work, the 1993 recession will also be 
remembered as the catalyst which 
prompted Mercedes-Benz and BMW 
to break with conservative tradition 
and set about building their first 
car manufacturing plants in the US. 
Reacting to global health reforms, 
the big three chemical groups, 
Bayer, BASF and Hoechst took up 
positions in the fiercely contested 
international market for cheaper 
out-of-patent generic drugs. 

Such relatively radical changes 


have helped dispel German indus- 
try’s reputation for aversion to risk, 
complacency, tunnel vision and 
leaden-footedness. But these failin gs 
are not the sole preserve of manage- 
ment: they extend deep into the cul- 
tural and political structure. Over- 
regulation at federal. Land and 
local government level militates 
strongly against innovation. Ger- 
man planning procedures and sys- 
tem of approvals for new factories 
and products, particularly in new 
technologies, consume years of 
management time. 

According to Mr Utz-Hellmuth 
Felcht. research director at 
Hoechst, the catalogue of 2,000 laws 
and regulations governing the 
chemicals industry sprawls over 
16,000 sheets of paper. Bureaucracy 
has meant his attempts to open a 
plant manufacturing genetically-en- 
gineered insulin near Frankfurt are 
only now approaching success - 
eight years after the project started. 

R aising public awareness 
of Germany's institu- 
tionalised bias against 
innovative industries 
will be a long haul. For 
now, restoring the health of the tra- 
ditional industrial base remains in 
the forefront of management's con- 
cerns. In the past few months reces- 
sion has turned to recovery, and the 
proGts stream is {lowing again. Last 
month the chemicals sector, tradi- 
tionally the first into and the first 
out of slump, published a swathe of 
ebullient interim reports. BASF, for 
example, announced a 40 per cent 
earnings boost. 

But welcome os the recovery is, 
its effect on company earnings is 
less vigorous than some in the cor- 
porate and political worlds would 
have the world believe. For exam- 
ple. BASF's earnings of DM680m on 
sales of DM22bn in the six months 
to the end of June pale beside prof- 
its of DM2^bn on DM24bn turnover 
in the first half erf 1989. 

Moreover, though companies are 
clearly coming round, the apparent 
scale and speed of the upswing is 
exaggerated by latest financial 
results which do not include the 
huge provisions set aside last time 
for redundancy payments and 
restructuring charges. Interim fig- 
ures and ant-nwipany in g Statements 
from company chairmen also betray 
the effects of ferocious international 
price competition in export markets 
which have contributed most of the 
momentum to the recovery so far. 

There are no indications of any 
relaxation in competitive pressures, 
and although the most dramatic of 
industry's restructuring measures 
have been implemented or 
announced, the shake-out has some 
time to run before it can be consid- 
ered complete. The short 1993 reces- 
sion mwrkpri only the starting phase 
of repairs to structural flaws which 
took 50 years to develop. 


Louise Kehoe on the latest generation of video games, launched in the UK this month 

Video games turn nasty 


T he best part is when you 
run over the granny with a 
walker,” says Erick 
Arnold, 14, eyes fixed on 
the TV screen, hands grasping the 
controller as he races recklessly 
through city streets an a motorcycle 
in Road Sash, a hit video game for 
the “multiplayer system" made by 
US company 3DO that Is being 
la u nched in the UK this month. 

Parents, and especially grand- 
mothers, may not appreciate the 
humour, but SDO technology is a 
winner among “selfish, single 
males”, as one software developer 
describes the target market The lat- 
est generation of TV video games 
has sharper graphics, higher-speed 
moving video sequences and better 
CD sound quality than other gama 
machines. 

There seem to be plasty of than 
around. World video game sales are 
expected to top $9bn this year, with 
Nintendo and Sega, both of Japan, 
the “mighty forces" in this world of 
Street Fighters, Fatal Fury and 
Eller Instinct 

SDO charged cm to the scene a 
year ago, like the bold champion in 
one of its fighting games, vowing to 
banish the evil monsters that frag- 
ment the market with different 


technical specifications and create a 
u n ifying global standard for interac- 
tive multimedia. The company 
licenses 3DO technology to hard- 
ware and software companies, 
which pay royalties to 3DO from 
sales of their products. 

Among 3DO’s backers are Matsus- 
hita, the Japanese consume- elec- 
tronics manufacturer AT&T, the 
US communications company; Time 
Warner, the publishing giant; and 
MCA, the entertainment group. 

For a time, it seemed that SDO 
was outgunned. Initial sales of the 
first SDO licensed product, Matsush- 
ita’s Panasonic Multiplayer game 
machine , were disappointing in the 
US. Heavily promoted software 
titles, such as a video game based 
on the film Jurassic Park, arrived 
late and (fid not live up to the hype 
that preceded them. 

Over recent months, however, 
SDO has been gaining momentum. 
“We Just had our best month ever," 
says Mr Trip Hawkins, founder and 
chief executive of SDO. Sales of the 
Panasonic game machine have 
reached a total of 200,000 - boosted 


by strong sales in Japan - enough 
to attract the interest of some of the 
best game software developers. Con- 
sumer electronics groups Sanyo of 
Japan and Goldstar of Korea have 
announced plans to launch their 
versions of 3DO technology this 
autumn and Creative Technologies, 
the leading supplier of sound cards 
for personal computers, has intro- 
duced an add-on circuit board for 
personal computers that enables 
them fo play SDO games. 

Now comes the UK launch. “The 
big competitors are not as 
entrenched here,” says Mr Bob 
Faber, SDO senior vice-president of 
marketing and managing director erf 
the new UK operation. 

He also sees an opportunity to 
build a broader market in the UK. 
Whereas most American and Japa- 
nese players - or “gamers" - are in 
their teens, the UK has a strong 
“adult gamers” market, he says, 
and even a growing band erf “sec- 
ond-generation ‘gamers’ whose 
fathers grew up playing Atari 
games in the early 1980s". 

There is no doubt where the pri- 


mary - and p rimal - interests of 
video game developers lie. “Your 
mission is to protect five teenage 
girls...," says the commander of 
Night Trap, a 3DO interactive 
movie. “If you don’t have the brains 
or the guts for this assignment, give 
the controls to somebody else.” 

“An ancient clan with the power 
to transform into fearful monsters 
stands poised to destroy itself for a 
goddess who will grant their every 
wish . . . reads the introduction to 
Breath of Fire. 

For now. 3DO has a technology 
edge over rivals, according to game 
aficionados. “The graphics and 
sound effects are much better," says 
Erick, a veteran player of Nintendo, 
Sega Genesis and personal com- 
puter games, “and the play action is 
faster than on the computer." 

But he says the 3DO player is too 
expensive, at about $500 in the US 
and a list price of £399 in the UK 
“It would take forever to save up for 
from a paper round [newspaper 
delivery round]." Sega's planned 
introduction in the US this Novem- 
ber of Genesis 32X, a $150 add-on 


component for its Sega Genesis 
video game machines may close the 
performance gap at a lower price. In 
the interests of research, however, 
Erick and several of his friends did 
not object to spending many hours 
this summer glued to the TV screen 
assessing the merits of SDO games 
such as Road Rash, in which motor- 
bike riders kick and punch each 
other, mow down pedestrians and 
plough into oncoming cars. 

Cmsh & Bum, a car race that 
would drive the authors of the 
Highway Code crazy, and Shock 
Wave, in which players must save 
the country from alien conquerors, 
also proved very popular. The latter 
is “good fun, great sound effects 
and graphics”, says Erick. 

SDO’s goal of establishing a 
global standard for interactive mul- 
timedia, including interactive TV, 
personal computers, video produc- 
tion as well as video games may be 
similarly difficult to conquer. The 
fledgling company will face bigger 
competitors at every turn. 

Whether 3 DO can move beyond 
video games will depend largely 
upon its ability to attract “gamers" 
in the next year. That may be chal- 
lenge enough for a young player in 
a big market 


Observer 


A diplomat's 
diplomat 


■ After months of coyness on the 
part of Anatoly Adamishm, it Is 
official Russia’s first deputy foreign 
minister is bound for London as the 
next ambassador to the Coart of St 
James, succeeding Boris Pankin 
who was first told he would have to 
vacate the a m b assad o rial mansion 
almost a year ago. 

A 37-year veteran of the foreign 
minis try, A danrtshtn has garnered 
modi of his considerable experience 
on the west European desk. He 
spent two long spalls in Rome, and 
professes his Kalian to be better 
than his “poor” (but in reality 
fluent) ’Rngfisb- 

BBgbly respected within the 
diplomatic community, toe new 
man also knows his way around the 
newly-mdependent Soviet states. HO 
was recently heard lamenting the 
West’s tendency to label as 
“neo-imperialism” any Russian 
attempts to promote stability round 
its borders. No doubt it is a point he 
will hope to hammer home in his 
new posting. 

Meanwhile, Pankin may feel a 
trifle aggrieved. As ambassador to 
Prague, he. alone among the Soviet 
ambassadors, stood up publicly 
n pirnai the attempted coup in 
August 199L The post of foreign 
minister, given to him as reward for 

his valour was soon lost, and the 
Anglophile’s tenure in T^mdnn has 


been shorter than he would have 
wished. Perhaps the former 
journalist fancies turning his 
to an informed account of the end 
of the Soviet foreign ministry and 
the creation of its Russian 


Rate of return 

■ When Dugald Eadie stepped 
down as chairman of investment 
performance consultancy WM 
Company in May, he professes to 
have been taken aback by the flood 
of raiio he received from fund 
managers eager to engage his 
services. 

After years of scrutinising all that 
performance data, he was certainly 
in an unusually good position to 
pick Ms new stable. So what 
precisely made him take tte call 
from CnWn Day who chairs 
Henderson Pension Fund 
Management? 

Henderson is so me t h i ng of a 
fallen star in the industry, but 
Eadie sa ys he took to the idea of 
running HPFM for the hi g hl y 
nan-technical reason that he finds 
them such a congenial bunch of 
people. The man who started off as 
a computer manager in stock 
broker Wood Mackenzie’s back 
office adds that he hopes he has 
identified what he terms “a 
recovery situation”. 

Yesterday the gamekeeper turned 
poacher was faxing WM’s 40 top 
cheats apologising for his 
re-emergence as one of their 



‘He was so upset by the ceasefire 
that he shot himself 

competitors. 

“There is a lot of secrecy 
summndizig performance in the 
industry” he told Observer. “I may 
be able to help". You bet... 


Strike out 

■ The Clinton administration has 
carefully avoided getting sucked 
iwtn the rancorous negotiations 
over the three week old strike that 
has shut down big league baseball 
in the US- But one administration 
nfflrfal is really fretting: william B. 
Gould IV. chairman of the National 
Labor Relations Board. 

A certified Boston Red Sox 


fanatic, Gould has contributed 
almost as many paeans to the Sox 
on the sports pages as he has 
penned scholarly articles on labour 
law. 

Indeed, given his background he 
would would seem to be just the 
person to sort out the strike before 
it spills over into the 1995 season. 

However, the NLRB can only get 
involved in unfair labour practice 
complaints anH in unionisation 
ballots. Still, Gould can take some 
comfort from the fact that when 
irfay stopped last month his beloved 
Red Sox attained second to bottom 
place in their division. 

Perhaps Gould would do well to 
write the season off. 


A banker explains 

■ A couple of weeks ago Observer 
got a call for help from financial 
advisers Pointon York. It wanted an 
En glfflh translation of a letter from 
the Bank of Scotland giving notice 
that it bad “retrocessed, repaired 
and restored..." 

There has been no shortage of 
suggestions from readers. Andrew 
Maitell of WiseSpeke suggested 
that what the bank was trying to 
say was, “here’s what we nicked 
from you". 

C- E. Fuller of ERF (Holdings) 
claimed the letter means that the 
bank had found a way of charging 
you for something they did in the 
past, which you did not know you 
had to pay for. and which they had 
not previously thought of charging. 


However, Viv Edwards of The 
Royal Bank of Scotland (who else?) 
came up with the correct answer. 
The notice refers to an asset 
provided to the bank as security. 
The English translation is “you can 
have it back". 


Reserved plaice 

■ Harry Ramsden’s fish and chip 
restaurant has as many working 
class credentials as Blackpool itself, 
so no surprise that it's proving 
popular with the Trades Union 
Congress. 

So popular is it that John Monks, 
TUC general secretary, made 
straight for it when taking a late 
supper on the eve of the conference. 
Sad to relate. Monks and Brendan 
Barber, his number two. were 
shown the door - because the 
restaurant had closed. 

Arthur Scargill, president of the 
National Union of Mineworkers, 
had managed to squeeze in earlier. 
Scargill may ua longer be a big fish 
in the union pond; but he can still 
organise a plate of chips. 


Gracious 


■ Thor price has been much 
discussed. Everything down to the 
shapes of their bottoms criticised. 
But can anyone both name the 
Three Graces and say which one is 
also a Muse. 

And don't be shy. The prize is 
not, repeat not. the sculpture. 


i 




16 


22 Shepherd 

l3I3 Design & Build 


Frederick House, Fulford Road. York YOt 4EA. 
Telephone 0904 632401 . Fax: 0904 610256. 


FINANCIAL TIMES 

Tuesday September 6 1994 


WORLDWIDE EXPERTISE AND RESOURCES 




Translators on final text stumble over women’s rights 

Population conference 
hits a language barrier 


By Bronwerf Maddox in Cairo 

Linguistic traps a re complicating 
the attempts of 182 countries at 
the Cairo population conference 
to draw up a final text of United 
Matrons policy on population and 
family planning. 

The A1 Ahram Centre for Jour- 
nalism. a research group 
attached to one of Egypt's lead- 
ing newspapers, has published an 
analysis of poor translations in 
the Arabic version of the official 
UN text which have potentially 
inflammatory connotations in 
Moslem societies, it says. 

The conference’s emphasis on 
women's rights - a marked 
departure from previous UN 
meetings, which have focused on 
demographic projections and con- 
traceptive techniques - is respon- 
sible for much of the difficulty. 

Arabic and Chinese translators 
said yesterday they were having 
particular trouble with “repro- 
ductive rights" and “empower- 
ment of women", the two central 
principles of the draft policy doc- 
ument, drawn up at the UN in 
New York. 

“In Arabic, the closest we can 


get to ‘empowerment’ is 
'enabling', but then you have to 
specify what you were enabling 
women to do," one translator 
said. 

UN translators and the AJ 
Ahram centre both seize on 
“single-parent households" as 
another pitfalL According to the 
centre, the phrase should have 
been translated as “households 
which are financially supported 
by one person”, so that it explic- 
itly included wives who had been 
divorced or widowed. Otherwise, 
the phrase implies that ail “sin- 
gle” parents are those who have 
bad children outside marriage, it 
suggests. 

Chinese translators invoke Sig- 
mund Freud in explaining the 
riiffirnhips of translating “human 
sensuality" from English Into 
Chinese. “In Chinese this comes 
across as ’sexual life* . . . but 
this does not catch the implica- 
tion in the English version that 
sexuality is a fundamental char- 
acteristic of human behaviour,” 
one said. 

UN Arabic translators also 
argued that delegations may be 
seizing on linguistic difficulties 


to escape the real philosophical 
and political differences between 
countries. The disputes "aren’t 
just the fault of translations, 
unless the Pope has also been 
working from the Arabic text,” 
one said, referring to the alliance 
of the Vatican and conservative 
Moslem religious leaders on some 
of the conference's most vexed 
issues. 

Those underlying cultural dif- 
ferences have surfaced most 
clearly in countries' differing 
reactions to the declaration that 
controlling fertility is a “right of 
individuals”, which runs 
throughout UN text 

Several delegates comment in 
private that the notion of “indi- 
vidual rights" is drawn from the 
relationship between an individ- 
ual and the state in western 
democracies and is foreign to 
many other societies. 

But according to one transla- 
tor, “the debate over rights 
shows that the problems are not 
all a matter of comprehension. 
People know perfectly well what 
rights are - it's just a question of 
whether governments want to 
give them to women.” 


Brazil restates co mmi tment 
to Real as market dips 8% 


By Angus Foster in Sdo Paulo 
and Graham Bowtey in London 

The Brazilian government 
yesterday tried to assure domes- 
tic and international observers 
that the country’s latest anti- 
inflation plan remained on 
course despite the weekend resig- 
nation of finance minister Mr 
Rubens Ricupero. 

Worries over Mr Ricupero’s res- 
ignation and the possibility that 
it would affect the chances of Mr 
Fernando Henrique Cardoso, the 
government’s candidate for next 
month's presidential election, led 
to an 8.6 per cent drop on the Sao 
Paulo stock market by lunch- 
time, and falls for Brazilian 
bonds on international markets. 

Replacement finance minister 
Mr Giro Gomes met President Ita- 
mar Franco yesterday and said 
the anti-inflation plan, together 
with its main component, a new 


currency called the Real, would 
not be changed. “It’s essential the 
[economic] plan continues as it 
Is," he said. He stressed that the 
team of economists who have 
overseen the Real’s introduction 
would remain in place In the 
finance ministry. 

Mr Gomes, a 37-year-old politi- 
cian from Brazil's poor north- 
eastern state of Ceard, said Mr 
Ricupero’s resignation was the 
result of “lamentably bad luck". 
Mr Ricupero resigned after pri- 
vate comments were broadcast 
by mistake on satellite TV. 

During the conversation, he 
said he had no scruples about the 
government using the anti- 
inflation plan to help Mr Cardoso 
in the election. The plan has cut 
monthly inflation from 50 per 
cent to less than 5 per cent 

Advisers to Mr Luiz Indcio 
Lula da Silva of the leftwing 
Workers party - Mr Cardoso's 


main opponent - said they would 
appeal to Brazil's election tribu- 
nal about unfair government sup- 
port for Mr Cardoso. Mr Orestes 
Quercia, another candidate, 
demanded that the tribunal dis- 
qualify Mr Cardoso, although this 
is seen as extremely unlikely. 

Mr Cardoso, who leads Mr da 
Silva in the latest polls by 45 per 
cent to 23 per cent, has tried to 
brush off the incident 

In international markets the 
price of dollar-denominated 
Brady bonds - bank loans 
repackaged as bonds which form 
the largest part of the Brazilian 
bond market - fell yesterday by 
more than two points before 
recovering slightly in later trade. 
With the US closed for Labor 
Day, the bulk of the trade took 
place in London. 

Gomes profile. Page 6 
Costly slip of the tongue. Page 14 


Labor Day 
baseball 
struck out 
by dispute 

By George Graham 
hi Washington 

It was the US Labor Day holiday 
yesterday, and President Bill 
Clinton had weighty matters of 
labour relations on his mind - 
the country’s baseball strike, 
now Into its fourth week. 

"I might say. on this Labor 
Day, there’s still time for them 
to go back and finish the best 
baseball season fa SO years, and 
I hope they wiU,” said Mr Clin- 
ton, fairing time off from his hol- 
iday on Martha's Vineyard for a 
speech at a Maine shipyard. 

Mr Robert Reich, the presi- 
i dent’s top labour official, was 
also cm the case. He has offered 
to mediate between the two 
sides, but said yesterday there 
was no point In mediating unless 
both sides actually wanted to 
negotiate. 

For the first time since Labor 
Day was established 100 years 
ago. there was no major league 
baseball to watch on the holiday 
that traditionally marks the end 
of summer. 

Hopes are fading fast that the 
deadlock between the players 
and the team owners might be 
broken in time for at least a 
truncated championship play-off. 

The owners insist the players 
must agree to a salary cap. The 
players insist there can be no 
serious negotiation until the idea 
of a salary cap has been dropped. 

On a Labor Day when New 
York City's trade onions could 
not master enough support for 
their traditional parade, the dog- 
gedness of the tiny baseball play- 
ers’ onion in pnrsning its eighth 
strike in 23 years stands in sharp 
contrast to the weakness of Urn 
rest of the onion movement 
Today only U per cent of the 
private sector w o rkforce is repre- 
sented by a trade union, with 
only the government employees’ 
unions showing anything like 
the bargaining tenacity of the 
professional sports onions. 

That may have something to 
do with the fact that most base- 
ball players, whose average sal- 
ary now tops Sim, have put 
something aside for a rainy day, 
and can also supplement their 
income while they are on strike 
by selling autographs or through 
advertising endorsements. 

At least for sola sports fans 
the American Football season 
has started. 


Kohl plays down EU plan I Call on IRA ceasefire 


Continued from Page 1 

Netherlands tomorrow. He is 
expected to argue that instead of 
a single hard core there should 
be different permutations of 
countries pressing ahead with 
integration according to their pri- 
orities. A senior UK official 
explained: “The notion of first- or 
second-class citizens is not a con- 
cept that we think is valid or can 
bo sustained." 

Publication of the CDU/CSU 
paper appears to end the truce on 


constitutional debate, reopening 
questions about Maastricht 
which struck a balance between 
community-wide obligations and 
looser co-operation between EU 
governments in areas such as for- 
eign and defence policy. 

Mr Klaus Haensch, the German 
SPD president of the European 
Parliament, condemned Che 
notion of selecting a hard core of 
nations and the publication of 
the paper ahead of the impending 
referendum; on EU membership 
in Sweden, Norway and Finland. 


Con tinned from Page 1 

London that it was prepared to 
give visas to Sinn Fdin officials. 

The spokesman made clear 
that Mr John Major, the UK 
prime minister, would prefer the 
US to refrain from granting Mr 
Adams a visa until Sinn F6in and 
the IRA had stated that the 
ceasefire, announced last week, 
would be permanent 

Reacting to Sir Patrick’s 
demands Tom Hartley. Sinn F6in 
national chairman, complained 


WEATHER 


Europe today 


A storm system centred near Iceland will bring 
wind and showers over the British Isles. A fast- 
moving low pressure system will cause 
extensive rain over northern France, the 
Benelux and Germany. Ourinq the rain, 
temperatures will not exceed 17C. A stationary 
band of rain will linger over southern 
Scandinavia but Denmark and northern regions 
will have sunny periods. Fresh westerlies will 
draw cool and unstable air over Germany, 
Poland and the Czech Republic, limiting 
maximum temperatures to around 19C. Rain 
over the Baltics will move lo the CIS. 
Temperatures well above 30C and abundant 
sunshme will still be found in the Mediterranean, 
although some thunder storms will hit the 
northern coast of Algeria. 

Five-day forecast 

Unsettled conditions over north-west Europe 
will gradually spread to southern France, the 
Alpine countries and north-west Spain. Showers 
with a risk of thunder and strong gusty winds 
are expected over British Isles, the Benelux and 
western Scandinavia where temperatures will 
be limited to 13C-16C along northern shares. 
Eastern and southern Europe will continue 
mainly warm and dry. 

TODAY'S TEMPERATURES 


fP 


the British were “piddling 
about”. 

Last night there was continued 
speculation that the Ulster Vol- 
unteer Force lUVF), one of the 
main loyalist paramilitary 
groups, might call its own cease- 
fire. Mr Chris Hudson, a Dublin 
trade union official who held 
talks with the UVF last week, 
said “there was definitely cau- 
tious optimism . . . that they were 
beginning to feel convinced there 
was no sell-out, no deals done, no 
secret agenda". 


10. JO ’ 1020 1Q3£H|<a^ 

*'10 • s*7v-? 












21 I 


v \ I „ ■ ,v .****-’■■ 

TV ' SNskCafl 




P- 

20 


/ # £ 


Wann from M. A CoM from A A M find speed tn KPH 


■ 


SituaOanai 12 GMT. Tempentiwvs maximum for day. fbreeaats by Mateo Consult of the Nether la nds 



Maximum 

Beijing 

sun 

30 

Caracas 

shower 

31 

Faro 


Celsius 

Belfast 

rah) 

16 

Canfff 

rain 

17 

Frarfcfui 

AbuDhatx 

3un 

39 

Belgrade 

sun 

27 

Casabfcmea 

fair 

27 

Genera 

Axra 

shower 

29 

Berlin 

shower 

18 

Chicago 

doudy 

22 

Gfixajrar 

Algiers 

thund 

32 

Bermuda 

cloudy 

32 

Cologne 

rain 

20 

Glasgow 

Amsterdam 

ram 

17 

Bogota 

cloudy 

19 

Qatar 

far 

29 

Hamburg 

Athens 

fair 

31 

Bombay 

ram 

29 

Dallas 

far 

35 

HetsinW 

Allanl.1 

fair 

31 

Brussels 

rain 

19 

De&d 

fair 

35 

Hong Kong 

B. Atm 

bur 

21 

Budapest 

fair 

27 

OubaJ 

sun 

41 

Honolulu 

B.tum 

shower 

17 

C.tagen 

Mr 

18 

Dublin 

shower 

17 

Istanbti 

Bangkok 

■Shower 

34 

Cairo 

sun 

35 

DUjtovthX 

aui 

29 

Jakarta 

Barcelona 

fair 

28 

Cape Town 

sun 

19 

Edinburgh 

ram 

16 

Jersey 


We wish you a pleasant flight. 

Lufthansa 


Kuwait 

L Angelas 

Las Palmas 

Lima 

Lisbon 

London 

LuUxwg 

Lyon 

Madeira 


sun 

31 

Madrid 

sun 

33 

Rangoon 

shower 

34 

rain 

22 

Majorca 

fair 

26 

Reykjavik 

ram 

13 

shower 

25 

Malta 

fair 

30 

Rio 

tar 

24 

sun 

26 

Mandwaur 

rain 

17 

Rome 

fab- 

29 

ram 

15 

Manila 

shower 

38 

S. Ftscd 

fab- 

22 

shower 

16 

Mdbowne 

shower 

14 

Seoul 

shower 

32 

shower 

IS 

Mexico City 

shower 

19 

Singapore 

cloudy 

32 

thund 

31 

Miami 

tfnmd 

32 

Stockholm 

rain 

16 

fair 

29 

Mdon 

tar 

28 

Strasbourg 

fair 

24 

sun 

26 

Montreal 

fair 

21 

Sydney 

fair 

26 

fair 

32 

Moscow 

fab- 

19 

Tangta 

aun 

31 

ram 

16 

Mnd) 

Wr 

23 

Tel Aviv 

sun 

32 

doudy 

33 

Nairobi 

Cloudy 

22 

Tokyo 

tar 

31 

am 

43 

Naples 

sun 

30 

Toronto 

fair 

21 

tar 

25 

Nassau 

fair 

32 

Vancouver 

doudy 

20 

sun 

29 

New York 

tar 

30 

Venice 

fair 

27 

doudy 

19 

Mce 

sun 

26 

Vienna 

fair 

as 

fair 

30 

Nicosia 

am 

37 

Warsaw 

shows 

20 

rain 

17 

Oslo 

shower 

14 

Washington 

tar 

30 

rain 

2a 

Paris 

shower 

23 

WeiBngton 

shower 

11 

fair 

27 

Perth 

fair 

20 

Winnipeg 

shower 

25 

Slfll 

27 

Prague 

tar 

22 

Zurich 

shower 

22 


THE LEX COLUMN 

Trouble brewing 


The decision of Foster’s to write down 
the value of its UK assets by one-third 
mils for a stiff drink. In some respects 
Foster's is only catching up with its 
peers. Its stake in the Entrepreneur 
pubs venture has been written down 
to a level already used by its partner 
Grand Metropolitan, but the red ink in 
brewing underlines that the outlook 
on this side of the business is as 
cloudy as ever. The inflow of cheap 
cross-channel lager has only added to 
the wider problem of overcapacity. 

Yet any lingering hopes among its 
competitors that the Courage subsid- 
iary of Foster's would be the first to 
crack and start closing capacity 
should be dispelled by yesterday's fig- 
ures. Its market share increased mod- 
estly last year and, thanks to cost 
savings, the operating performance 
was respectable. Excluding the impact 
of chang es in excise duty and cur- 
rency translation, profits were flat. 
Since the wholesale price war has 
failed to produce clear winners or los- 
ers, the question remains whether the 
big brewers will be forced into a sober 
reassessment of strategy. 

Anecdotal evidence suggests that 
the last two months have seen a pause 
in pricing hostilities, but that could 
simply be a result of stronger beer 
sales during the summer months. The 
long-term trend towards lower beer 
consumption has not changed. If the 
autumn brings a seasonal decline in 
sales, discounting could return with 
vengeance. It is difficult to see why 
marg ins should improve until capacity 
is withdrawn, which makes Grand 
Mefs decision to sell its brewing inter- 
ests to Courage three years ago look 
increasingly well judged. 

Airbus 

Transporting tanks and guns is not 
so different from carrying passengers 
and freight, so there is logic in bring- 
ing the European Future Large Air- 
craft project within the Airbus consor- 
tium. The move may also bring British 
Aerospace some advantage in its cam- 
paign to persuade the UK government 
to buy the FLA rather than Lock- 
heed's rival Hercules transport air- 
craft Airbus has a track record or 
delivering aircraft on time and budget, 
which cannot be said of most military 
aircraft programmes. If BAe can per- 
suade the government Airbus’s good 
practices can be transferred to the 
FLA, that could nudge the procure- 
ment decision tn its favour. 

Even so, Airbus's consortium struc- 
ture is only a second-best option com- 


Bumtah Caatrol 

Share price retatfve to the FT-S&A Al-Share 
Max 



60 1 L — 1 . » — ■ 

1990 91 92 93 - 84 

8owoat OR an —m 

pared with an integrated corporation 
on the lines of Boeing or the soon-to- 
be-created Lockheed Martin. Airbus is 
still too wedded to work-sharing 
arran gement s under which many con- 
tracts are awarded in proportion to 
the stakes held by its partners, so 
blunting its ability to cut costs 
through competitive tendering. The 
FLA will follow a similar model. Not 
only will BAe be cut out of the project 
if fiie UK fails to buy the aircraft. It 
could even lose its position as supplier 
of Airbus wings to Deutsche Aero- 
space. Plans to turn Airbus into a 
more straightforward company have 
in the past foundered because of politi- 
cal sensitivities. But, with competition 
in both military and civilian markets 
stepping up, its cumbersome structure 
is looking increasingly like an expen- 
sive luxury. 

Burmah Castrol 

Fears that Burmah Castrol’s lubri- 
cants business had matured were con- 
founded by yesterday’s results. Skilful 
mar keting and geographical ex pansion 
into fast-growing markets helped the 
division achieve 24 per cent growth in 
operating profits and an 8 pm 1 cent 
increase in sales. Margins were a 
healthy 10 per cent - not bad for what 
was supposed to be a mature business. 

Given lubricants’ success, the con- 
tinuing failure of the group’s diversifi- 
cation into speciality chemicals was 
all the more disappointing. Synergies 
between lubricants and specialities 
have proved hard to discover. Like 
other lumbering groups lured into the 
fast-moving speciality chemicals busi- 
ness, Burmah has found decent mar- 
gins hard to achieve. Despite massive 


cost cutting, the chemicals division’s 
5 J 5 per cent operating margins during 
the half year to end-June are still 
worse than those in 1991 - just after 
Burmah bought into the business, 
That compares with the 14 per cent 
achieved by focused speciality groups 
such as Allied Colloids and La porte. 

Burmah should stick to what it does 
best - selling lubricants. Ideally, it 
would divest its chemicals division. It 
could achieve a decent price as its 
important continental customer base 
starts to recover. The worst scenario 
would be if, once the chemicals busi- 
nesses had benefited from the cyclical 
upturn, the company compounded its 
error by making farther acquisitions ; 
in the sector. For the moment, man- i 
agement is thankfully stressing the . 
need for organic growth. ^ 

Coats Viyella 

Managers looking for an easy life do 
not, on the whole, go into textiles. Yet 
if Coats Viyella is right, textiles com- 
panies are enviable in one respect - 
their ability to pass on raw materials 
price rises to their customers. It seems 
that by adding a few cheap frills to a 
blouse Coats can convince shoppers it 
Is a new product and increase the 
price to cover higher cotton costs. 
Cents expresses confidence that it will 
continue to recover cost increases 
frilly as they work through over the 
next few months. Given the current 
negligible inflation in clothing, that 
would be quite an achievement 

The odds are that Coats’ UK mar- 
kets will remain tough, and particu- 
larly those related to housing moves, 
which will make it all the more impor- 
tant to avoid self-inflicted wounds. It 
was not the only one to be caught 
off-guard by the changes in women's 
knitwear fashions but the batched 
attempt to attract younger women 
into Jaeger was a dangerous gamble. 

Perhaps the most disappointing 
aspect of the interim figures, for 
which Coats bears little blame, was 
the fell in profit from less developed 
countries. Coats' exposure to fast- 
growing markets in Latin America 
and Asia has fapn one of its main 
attractions for investors. Yet the 
nature of Coats' business makes it vul- 
nerable to these economies’ fluctua- 
tions and even if more stable growth 
were achieved they would still 
account for a relatively small propor- 
tion of group sales. Investors may 
have to come to terms with the feet 
that Coats, like Jaeger, is a mature 
business. 


110 4 I N T K It I M K K S III, T S 


Operating profits up 31% 


INFORMATION 


Westminster 


HNANCIAI. FIMKS 


Addison-Wesley 


Longman 


kdlcation 


ENTERTAINMENT 



▼ 


- — 

TUSSADDS 
. fr* — • 


Half year Hair year Increase 


Operating profit 


Profit before tax 


faming* per share 
Adjusted earnings per ttliare 


Dividends per share 


£6 7.6 m 


£69-3m 


£5IJ»m 


£l6Jim 


£2 16.1m 


£2 08. 6m 



PEARSON 


A copy of the full announcement, which is being sent lo all aharrhofriere, u available Train Pearson pic: 
Pearson pic. Millbank Tower, Ixmdon SW||* 4QZ. Telephone: 071 41 1 2000 



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CONTRACT HlRF 
SELL AND LEASE BACK 
CONTRACT PURCHASE 


5SSJ* ° 15>1 510 0494 

scotta?^ 0345 s «5»-to 
SCOTLAND OI73S 625 031 


IN BRIEF 


Poster’s in UK 
asset write-down 

Foater'sBrewing Group, me Australian brewing 
group which owns Britain’s Coinage group, verter- 
dy combmed news of a 9 per cent Ml in profits 
aftertax, and abtwrmals in the year to end-June. 
wim news it is to write down its UK arerts by 
almost one-third. Page is 

Baby Bolls caH on Hollywood 

In the past year, the big regional telephone compa- 
meshave been beating a path to Hollywood's door. 
seeSing to forge alliances with entertainment 
groups and film and television makers, hiring pro- 
gramme production executives and exploring joint 
■ventures. Page 20 

Cashm posts threefold profits rise 

Casino, the French supermarket group, yesterday 
announ ced a threefold increase in interim net prof- 
its FFK53m ($10m) for the first half of this year 
from FFr17. 6m in the same period erf 1993 due to a 
general improvement in trading activities. Page 20 

Unk-ops for Malaysia and Indonesia 

The past few months has seen a sudden surge in 
business activity between Malaysia and TnHnmorfa 
as south-east Asia's big companies cooperate to 
exploit the area’s robust economy. Page 19 

De Beers puts faith in stable diamonds 

De Beers, the South African group that dominates 
world trade in uncut diamonds, still ha« faith in its 
ability to maintain stability In the diamond marimt 
despite some short-term difficulties. Page 28 

Profits at Mayne Nickless rise 21% 

Mayne Nickless, the Australian transport «nd secu- 
rity services group, saw profits after tax and ahnor- 
mals rise 21 per cent in the year to July 3 to 
A$09J5m (DS$52m). Page 19 

Bumah Castrol raises p ro fi t s 16% 

Bu rmah Castrol, the lubricants, r-hamiRgis and fuels 
group, increased interim pre-tax profits by 16 per 
cent but said it would be unable to repeat an 
“exceptional" performance by Castrol in the US 
during the second half. Page 23 

He y w ood Wffliams lifted by US purchases ■ 

US acquisitions lifted the first-half results of Bey- 
wood Williams, the UK buDding materials and auto- 
motive components group, which more than dou- 
bled the pre-tax profits of its contmnmg businesses. 
Page 25 

Heavy session for WPP 

Activity in WPP, the UK advertising and marketing 
services group, dominated yesterday's business in 
the London stock market Ranks that bailed out the 
com pany two years ago through a convertible share 
issue sold much of their stake into the market, rais- 
ing £I38m CJ212in). Page 27 

Tokyo Investors fear fbr a repeated fsll 

Investors in Tokyo are Increasingly nervous that 
the market may be about to repeat its precipitous . 
fall of last year on the back of a substantial 
increase in equity supply. Page 21 

Bnd plunges 8.6% as minister quits 

SSo Paulo plunged per cent in heavy midday 

trading as investors sold after the resignation of Mr 
Rubens Ricupero as economy minister. Mr Robert 
Barclay of Baring Securities said he expects the 
market to fall by as much as 20 per cent over the 
next two weeks. Back Page 


Companies in this issue 


ABN Amro 
ASW 

Advanced Media 
Bangkok Expressway 
Bank Austria 
BtetcNey Motor 


17 

34 

24 

t 21 
17 
24 

a 

27 

24 

27 

24 

24 

20 

27,1617 

11 


British Petroleum 27 

Brfttanta Bidding 24 

Burmah Castrol 27 

Csfcterbum 24 

Cantors 24 

Casino 20 

Coats VtyoUa 27,1617 

Compaq 11 

Computer People 24 

C o pymore 2* 

Eastern Electricity 27 

Edinburgh Income Tst 24 
Energy Capital Inv 24 

Etonbrook Properties 24 

Expamet Inti 24 

Foster's 18 

Heywood Williams 25 

Jtapan Teleom 21 

Market Statistics 


^Annual reports sank* 
B a ndana* fiovt bonds 
Bond totores and options 
Bond prices and yUfc 
Commodities prices 

DMdenfe announced, UK 
EMS currency rates 
Eunbond prices 
Hnd Merest hdees 


FTASMA infl bond sw 
tf-SE Actuaries Mias 


Lufthansa 
Mansfield (John) 
Mayne NfckkJSS 
Merck 

M ote H Q BsalBchalt 
Mthrss Inv Truat 
Northern Electricity 
OBver 

Panther Secu rit ies 
Portland 

Peregrine Inv’menta 

Maumee 

RPS 

Rofis-Ftoyce 

Saint-Louis 

Santos 

Schindler 

Scotia Holdings 

Soufhcorp 

Standard Chartered 

Sturge Holdings 

Suter 

TSB 

Tate a Lyle 
Volkswagen - 
WPP 
Westland 
Wilson Bowden 


28-29 

Foreiffi BHctengs 

34 

22 

Gflts prices 

22 

22 

Ulfe equity ojttms 

Beck Page 

22 

London stare sendee 

28-29 

26 

London tnd options 

Back Page 

23 

Managed ftmds sendee 

30-34 

34 

Money maria® 

34 

22 

Page 

New Mi bond Issues 

Recent Issues. UK 
Slwrt-tami ini rate# 

22 

27 

34 


US interest rates 

22 

27 

World Stock Mariota 

35 


Chief price changes yesterday 


FRANKFURT (DM) 

nut __ 

HaldflB Zan 1285 + % 


BwvmnsM M8 - 1U 

OMoMd - 55 

DwteteBUdi m £ - M 

Lidnansa ftt 196 - Si 

leuftgltatt 200 -7 

PARIS |Fft| 

a : " 

Sf 235.7 - W 

New York ctoeed. 


Crad im> n M - 1ft 

FMeAHKH*! 39I-1M 
Mnjr CDUeei 209-54 
TOKVOpree) 


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B5A + 42 


Gate Steel 551 - 2ft 

hnCtetd 955 - «5 

ITsbta Kou 2830 - 170 

S aga« mu - m 
mvo nst&sr« nso - 70 


UWNHltewri 


ScdtWMd 


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Cads V^fsOa 226 

CHpMrfta* ™ 


173+7 

225+14 

226+5 


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Ptotnec 

BPSBttP « 

toSne 1® 

Setndtm 1525 


226+6 
195 + W 

122+5 
45 + 4 

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140 + 1 J 

60+5 

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1525 + *7 


ffi + 4 

192 + 11 

50+7 

943 + 10 


BdkriVRB 250 

BuMhCSlM 891 

PKerSystaos 73 

a# 188 

tbh 281 



FINANCIAL TIMES 

COMP/ 

LNIES & MARKETS 

©THE FINANCIAL TIMES LIMITED 1994 

Tuesday September 6 1994 



Metallgesellschaft more optimistic 


By Christopher Parked 
in Frankfurt 


Metaiigeseilschan expects to earn 
more than D Ml 00m (364m) in 
operating profits in 1994-95 after 
last week's agreement to staunch 
the flood of losses on controver- 
sial oil purchase contracts with 
Castle Energy of the US. 

Current risk provisions of 
DMlbn already set aside to cover 
these deficits would have to be 
increased, the group said last 
night, although no significant 
new burdens had arisen from the 
deal with Castle, it added. 


The metals and engineering 
group, which -came dose to col- 
lapse early this year before being 
rescued by its creditor banks, 
also ft had sign ed an 

agreement in principle with an 
on-named buyer for its FTankfurt 
headquarters. It expected the dis- 
posal to yield "considerable 
extraordinary profits”. Unofficial 
estimates have valued the site at 
about DMTSOm. 

A “solution had come closer" 
in efforts to sell a 47 per cent 
stake in the KoB)««chimdt auto- 
motive components company. 
The group, which is known to be 


negotiating with Dana Corp of 
the US and Britain’s T&N. 
recently instructed Deutsche 
Bank to draw up plans to place 
the stock as an option to an 

industrial sn i p ,. 

In a statement issued after a 
meeting between the banking 
consortium which raised a 
DM3.4bn salvage package and the 
company's supervisory board, 
Metallgesellschaft said it would 
seek further fresh capital at the 
end of the current year on Sep- 
tember 30, and was confident its 
proposals would be approved by 
the hanks and shareholders. 


The tone of the statement con- 
trasted sharply with a recent 
warning the company issued at 
the time of the announcement of 
terms for its most recent capital- 

raismg move: the offering of 5.6m 

new shares to raise DM1.4bn. 

The prospectus said the suc- 
cess of restructuring measures 
could not be guaranteed, and 
there was no chance of dividend 
payments’ being resumed in the 
foreseeable future. 

Even though dividend pros- 
pects still appear dim, the com- 
pany seems almost to have 
reached the end of the sell-off 


phase of its restructuring, leav- 
ing it dependent for future earn- 
ings on the rump, which com- 
prises mainly metals trading 
operations, environmental engi- 
neering businesses and a bank. 

The shakeout has led to the 
sale of all mining interests, the 
highly profitable Buderus heat- 
ing equipment maker, and sharp 
contraction in German-based 
metals smelting. 

The crucial move, however, 
was last week's negotiated escape 
from contracts between Castle 
and Metallgesellscbaft's US sub- 
sidiary MG Corp. 


BARR 


■ construction! 


Expanding by Contracting 


Telephone Ayr (0292) 231311 


Austrian 
bank seeks 
foreign 
partners 

By Ian Rodger m Vienna 


Lufthansa’s immin ent share | Coats advances 10% 

sale to exclude US market 


By Antonia Sharpe in London 

The latest stage in the German 
government's privatisation of 
y-nWismca the n a tional an-Hni^ is 
set to go ahead at the end of this 
month, said Dresdner Bank, 
which is co-ordinating the inter- 
national domestic offerings, 
yesterday. 

The gov e rnment's timing coin- 
cides with a radical tumround in 
Lufthansa’s fortunes which has 
resulted in a rinnhting of jjg share 
price from a low of DM97 in Janu- 
ary 1993 to a high of DM22SB0 
last mouth. The shares closed at 
DM2G7.50 yesterday. 

Lufthansa said last month it 
expected to make an operating 
profit this year and confirmed 
earlier suggestions that it would 
resume dividend payments for 
the first time since 1989. 

The government intends to 
reduce its stake in Lufthansa 
from 51.4 per cent to about 41 per 
cent by not participating in the 
rights issue, Dresdner said. The 
3Jhn shares which the govern- 
ment will not be taking up will 


Lufthansa - 

Share priori (DM) 
220 . = : 



1 .. 1993 

.sawtecFr-o^pWa ! 

be sold to investors in Germany 
and abroad, excluding the US. 

Lufthansa has decided not to 
place shares in the US under the 
Rule 144a of the US Securities 
Act to limit the risk of excessive 
foreign ownership which could 
jeopardise its national flag car- 
rier status. 

US investors, however, are 
likely to be included when the 
government disposes of the rest 


of Its shareholding which is 
scheduled to take place before 
the end of 19%. 

The new shares are likely to be 
priced at a slight discount to the 
prevailing market price. If inves- 
tor demand is sufficiently buoy- 
ant the government also intends 
to sell a further 2.1m existing 
shares reducing its stake in Luft- 
hansa to 36 pa- cent 

Dresdner Bank has drawn up a 
large syndicate of domestic mid 
international h anks to ensure a 
wide placement of the shares. 

Klemwort Benson and National 
Westminster have been 
appointed senior sellers of the 
UK and Ireland tranche, S.G. 
Warburg and UBS are senior sell- 
ers for the rest of Europe tranche 
and CS First Boston and Morgan 
Stanley are senior sellers for the 
rest of the world tranche. 

The preliminary circular was 
published yesterday. The book- 
building process commences on 
September 19 and will close 10 
days later with the setting of the 
price and the allocation of the 
shares. 


Dutch bank aims to compete in world’s first division 

T he decision by ABN Amro, /V R ^1 A tYl TVS Q IT 

the bank which dominates ilJllil U LdiVviJ 


T he decision by ABN Amro, 
the hank which dominates 
banking in the Nether- 
lands, to use its name on invest- 
ment banking operations around 
the world is a further step on an 
ambitious route. “We are a bank 
that takes small steps, but many, 
many of them," says Mr Jan 
Kftiff, chairman. 

It is characteristic of ABN 
Amro, framed by the merger of 
Algemene Bank Nederland and 
Amsterdam-Rotterdam Bank four 
years ago, to have taken some 
time to blow its trumpet For the 
seventh largest European bank - 
bigger than Barclays and Dresd- 
nar - it has kept a low interna- 
tional profile. 

By re-naming its equities, fixed 
incrane and some of its corporate 
finance activities ABN Amro 
Hoare Govett - after the London 
broking firm it acquired in 1992 - 
ABN Amro has sent a s ignal, it 
wants to be recognised as a bank 
that competes with US firms 
such as Goldman Sachs. 

ABN Amro already claims to 
be a global bank. It has 1,690 
branches in 60 countries, because 
of the colonial legacy of ABN, 
which had branches in the Dutch 
East Indies. It also owns the 
324hn asset La SaHe bank in Illin- 
ois, and the 36bn asset European 
American Bank on Long Island. 

In the first half of this year 40 
per cent of its assets were outside 
Holland, while 45 per cent erf pre- 
tax profits were interna tionaL 
But its claim to being a global 
investment bank is weaker. It 
does little equity underwriting 
outside Holland, and is st ill 
organising its broking network. 

T.ifcg Swiss banks which have 
wr panrlpri Interna tionally, ABN 

Amro faces intense margin pres- 
sure in a small domestic market, 
like them it has ambitious to put 
down roots in a second European 

“home market” by buying a bank 

or savings bank in Belgium, 
France, Germany or the UK 
ABN Amro is accustomed to 
mairinfi slow, steady progress. Mr 
Knlff estimates that it is between 
“two thirds to three-quarters" 
towards achieving the FI 600m 
(3342.8m) cost savings it said it 
could get from its merger. 

The merger was intended to 
create a bank which compete 
globally. "It was obvious that we 
could not go on acquiring banks, 
and charg in g large amo unts of 
goodwill, as ABN had done, with- 
out it hampering growth,” says 
Mr KaMt a framer ABN executive 
who became chairman in May. 

The most significant invest- 
ment banking step ABN Amro 
hag takaw er«t«n tha merger has 
been to build us a broking net- 
work. This fwnhidag firms such as 
Riada Stockbrokers in Ireland 
and Massonaud-Fontenay-Kerv- 
em in France to Hoare Govett 
Equities have been run from Lon- 
don since 1994. 

ABN Amro wants to meld the 
broking operations into a single 
network, and use it to strengthen 


small steps on 
a long march 


hi W-.vJ W' *A+» H 



Rahim on stian^x^fors'.aqufty 


! Total doeete 

■_ ' . *1 ’< S* 

, Nemauarida -ill.' 


Pre-tax pnOt by region 

. : .laiwfT^'p r^ 


..Europe' 


S' North- 
; g1.0 America * 

■ . Centra} & 

■ - ajuBi America 

■' Mkfcfe&ot.* 

. ftr Etat&Afitca 



Sounw Gempaqr/teM* 


its corporate finance arm. 

It points to Us manage- 
ment of the FI 7hn flotation of the 
Dutch post and telecommunica- 
tions company KPN this year, 
when its network of brokers - 
notably Hoare Govett - allowed 
it to distribute KPN equity. It 
will be a much harder task to 
break into primary equity busi- 
ness elsewhere, but Mr KaM says 
he is optimistic that its huge cli- 
ent list of large companies will 
eventually help it to prevail 

“I am optimistic that we will 
make an inroad one of these days 
if we show our capability and 
commitment,” says Mr Kalff 
about lead managing equity in 
France. ABN Amro has also 
applied for US securities under- 
writing powers, although Mr 
Kalff says it will be a hard mar- 
ket to penetrate. 

Malting its broking network 
function effectively as a unit 
could also take some time. 
"Sometimes the French have 
problems listening to Amster- 
dam, and now they must figfan to 
London, which may be even mare 
difficult,” says Mr Rjqnhard van 


Tets, the board member for 
global investment hanking 1 . 

ABN Amro's investment bank- 
ing is aiming to gain 50 per cent 
of pre-tax profit internationally, a 
12 per cent return on equity, a 
cost-income ratio of 62.5 per cent, 
and capital ratios at least 30 per 
cent hi ghw than the minimum. 

The bank has avoided a strong 
push into derivatives, and does 
less financial markets trading 
than its counterparts in Switzer- 
land. But this places it under 
stronger pressure to break into 
markets like equity underwriting 
to justify international invest- 
ments. 

"We are very risk conscious. 
We are not averse to risk, but we 
do not take something an unless 
we are sure we can manage it,” 
rays Mr Kaffl. Yet given the low 
wwrg mfl on In ternational lending , 

ABN Amro may find it hard to 
achieve target returns without 
faking more risks that it has in 
the past 

John Gapper and 
Ronald van de Krol 





Bank Austria is looking for 
international strategic financial 
partners after the announcement 
by the federal government that it 
wanted to sell its 22A per cent 
voting stake in the country's 
largest bank. 

Mr Hans Mayr. deputy mayor 
of Vienna, said be was already In 
discussion with "a number of 
large International banks” about 
baying parts of the government's 
shareholding. 

The City of Vienna controls 
51.8 per cent of the votes and 
45.6 per cent or the capital in 
Bank Austria. Although tbe 
bank already has relations with 
Westdeutsche Landes bank, Mr 
Mayr told Vienna’s Der Standard 
that the discussions were mainly 
with banks from Anglo-Saxon 
countries, and he would rather 
bring in three or four partners 
than a single one. 

Mr Mayr also said the city 
would let its shareholding in 
Bank Austria drop below 50 per 
cent in the near future by not 
participating In rights issues. 

Mr Ferdinand Lacina, the Aus- 
trian finance minister, confirmed 
last week that the federal gov- 
ernment wanted to sell its stoke 
in Bank Austria, but added: "We 
are not in a hurry and don’t 
want to be pressured.” The mar- 
ket value of the federal govern- 
ment stoke in Bank Austria is 
about Schll.lbn (Slim). 

Mr Lacina, meanwhile, said 
yesterday he had engaged 
JJP. Morgan, the US investment 
bank, to assess bids for parts of 
the government’s 70 per cent vot- 
ing stoke in Creditanstalt-Bank- 
verein, the second largest h ank. 

CS Holding, the financial ser- 
vices group built around Credit 
Suisse, and a consortium drawn 
from mainly from Conservative 
business circles in Austria have 
made competing bids. 

Mr Larina has said Allianz, the 
German insurance group, has 
also showed interest Some Vien- 
nese bankers suspect that the 
Raiffeisen group of banking co- 
operatives, which last year made 
an aborted bid to merge with 
Creditanstalt may try again. 

Mr Rainer Gut, CS chairman, 
has made dear CS would even- 
tually want full control of Cre- 
ditanstalt Mr farina, who has 
hitherto been supportive of the 
CS bid, said last week that an 
Austrian influence in the hank 
should be guaranteed. 

The stances of both Mr Larina 
and Mr Mayr probably reflect at 
least in part, short-term political 
interests. 


r record mlf 



The Hellenic Republic 

US $500,000,000 
Term Loan Facility 


Arranger* 

The Bank of Tokyo, Ltd. Chase Investment Bank Limited 
Citibank International pic The Dai-lchi Kangyo Bank, Limited 
The Fuji Bank, Limited Hill Samuel Bank Limited 
Lloyds Bank Capital Markets Group The Mitsubishi Bank, Limited 
j.P. Morgan Securities Ltd. NatWcst Markets 
The Sanwa Bank, Limited The Sumitomo Bank, Limited 
Union Bank of Switzerland 

Senior Lead Manager* 

Tbe Bank of Tokyo, Ltd. The Chase Manhattan Bank, N.A. Citibank, N.A. 

The Dai-lchi Kangyo Bank, Limited The Fuji Bank, Limited Hill Samuel Bank Limited 
Lloyds Bank Pic The Long-Term Credit Bank of Japan, Limited The Mitsubishi Bank, Limited 
Morgan Guaranty Trust Company of New York National Westminster Bank Plr 
The Sakura Bank, Limited The Sanwa Bank, Limited The Sumitomo Bank, Limited 
The Tokai Bank, Limited Unibank A/S Union Bank of Switzerland 

Managers 

The Asahi Bank, Ltd. Banca CominercuJc Italoru SpA, London finodi 
Banco Central Hispanaamcricano S.A., Fruition [trench 
Bank of Scotland Batxjue Paribas Christiania Bank og Krcdhkasse 
National Bank of Crewe S.A., London Breach Union de Banqucs Arabcs ct Fnutfaucs - U.B.A.F. 

Co-Managers 

Banco de Negooo* Argqioria Banco Exterior (Suiza) SA Chang H»a Commercial Bank Lid. 

The Export-Import Bank of the Republic of China KDB Bank (UK) Limited Overseas Chinese Bank 

P ar tici pant* 

Angjo- Romanian Bank Limited Arab African Ititenutional Bank Banco Esptrita Santo e Comercul de Lisboa 
Banco Gupuacoaoo Banco Herrera Banco Torn St Azores, 5.A. The Bank of Nagoya 
Bank of Taiwan Chiao Tong Bank Europe N.V. F. van Lanschot (Jersey) Ltd. 

Hua Nan Commeraul Bonk, Lid., New National Bank of Egypt International Limited 

Facility Agent 

. Citibank International pk 







18 


FINANCIAL TIMES TUESDAY SEPTEMBER 6 1994 


★ 


INTERNATIONAL COMPANIES AND FINANCE 


Saint-Louis to accelerate 
expansion of sugar sector 


UK asset write-down 


Foster’s in 

Gy Nikki Tait bi Sydney 

Foster's Brewing Croup, the Australian 
brewing group which owns the UK's Cour- 
age group, yesterday combined news of a 9 
per cent fall in profits after tax and abnor- 
mals in the year to end-Jnne, with the 
annomn^ment that St is to write down Sts 
UK assets by almost one-third. 

Foster’s said that it was cutting the 
value of its UK assets on its hafanne sheet 
by AS955m (USS709m). They are writing 
down A$385m for the Courage brand 
name s, A$242m for goodwill. A$58m for 
Courage's fixed assets and A$270m for the 
company’s investment In Inntrepreneur 
Estates (TEL) , the pubs business in which 
Courage holds 50 per cent. 

The write-down decision followed con- 
tinued trading difficulties in the UK; a 
complex regulatory environment; more 
access to the UK market for European 
brewers; and the “market trend to the 
lower-margin, take-home segment”, Fos- 
ter’s said. 


But the Melbourne-based group also 
announced that it would offset much of 
the hflianrg sheet damage by writing up 
the value of its Australian assets, and 
inrinHing* a valuation for the Carlton and 
United brand names. In the 1993 accounts, 
Foster’s did not include a CUB brand valu- 
ation but said, in a footnote, that directors 
considered them to be worth around 

AJlbn-AH^n. 

Yesterday, Foster's said that it had 
refered to an independent assessment 
when deciding the value of the CUB 
brands but decided to pick a substantially 
lower figure. “To remove all doubt about 
the long-term sus tainab le worth of these 
brands, directors considered it appropriate 
to adopt more conservative valuation 
assumptions". The value of the Australian 
brand assets has increased by A®665m. 

As a result, A$439m of the UK write- 
downs is charged against the asset revalu- 
ation reserves, which have been bolstered 
by the CUB write-up. Ihe remaining write- 
downs are largely offset by abnormal 


gains, notably from asset sales, the 
restructuring of Foster's investment in 
Beswick (which holds shares in BHP, the 
mining group) and from the write-back of 
earlier finance asset provisions. The end- 
result is an abnormal charge of A$7lJm 
taken through the profit and loss account 
Foster’s reported a 10.3 per cent increase 
in pre-tax profits to A$3QS.4m- Sales fell to 
A$5.07bn from A$6-49bn. 

Operating earnings from. CUB rose to 
A$250m from A$2Um. with market share 
climbing to 53 per cent. Pre-interest profits 
at Courage, by contrast, fell to A$174m 
from AS208m. a decline exacerbated by the 
strengthening Australian dollar. 

profits were helped by a sharp drop In 
interest charges, to A$214.9m From 
A$343.3m, with end-June debt put at 
A51J85bn compared with A$2.64bn a year 
ago. Basic earnings per share were 8.7 
cent, compared with 10.7 cents in the pre- 
vious 12 months. There is an unchanged 
final dividend of 3.25 cents. 

Lex, Page 16 


A fresh look at brewing problems 

The Australian group is reviewing UK strategy, writes Roderick Oram 


By Alice Rawsthom 
in Paris 

Saint-Louis, the French food 
and transport group, plans to 
accelerate its expansion within 
the European sugar industry, 
according to Mr Bernard 
D u mrm c hairman 

Mr Dumon told Le Figaro, 
the French newspaper, that he 
was interested in increasing 
the company's sugar activities 
in France and in the emerging 
eastern European markets. 

The chairma n also affirmed 
that the group, which suffered 
a fall in net profits last year, 
was on course for recovery in 
1994. 

Saint-Louis is already in 
negotiations to augment its 
western European sugar inter- 


By Tun Burt in London 

Coats Viyella, the UK’s largest 
clothing and textiles company, 
yesterday shrugged off patchy 
demand and sharp increases in 
raw material prices by report- 
ing a 10 per cent rise in first- 
half profits. 

The group's success in pass- 
ing on price rises to customers 
helped lift pre-tax profits to 
£69 2m (810726m) from £62 2m 
in the six months to June 30. 

“We've been more creative 
than other manufacturers in 
passing on increased prices." 
said Mr Neville Bain, chief 
executive 

The group also said it had 
seen signs of a strengthening 
recovery in the UK and conti- 
nental Europe, which contrib- 


in Copenhagen 

Borealis, the plastics joint 
venture set up this year by the 
F innis h and Norwegian state- 
owned oil refiners, Neste and 
Statoil. cut its first-half loss to 
DKr250m ($4lm). Turnover was 
about DKr6.53bn. 

No comparable figure for 
1993 was available, but Mr 
Svein Rennemo. Borealis’ chief 


eral Azucarera, the Spanish 
sugar concern, from the pres- 
ent level of 10 per cent to 20 
per cent. 

The deal involves the acqui- 
sition of a holding now owned 
by the Banco Central Hispano 
americano h ankin g group. 

The talks with Banco Hispa- 
noamericano have been under 
way for same months. 

Mr Dumon said that the two 
companies were about to 
resume negotiations in earnest 
after a lull during the summer 
holidays. 

When the General Azucarera 
deal is completed, Saint-Louis, 
which is understood to be able 
to spend more than FFr7bn 
f$l.3bn) on acquisitions, will 
turn Us attention to expansion 
elsewhere in Europe. 

One priority is eastern 


uted to increased sales of 
£l22bn. against £l.l7bn. 

Operating profits, however, 
were held back by disappoint- 
ing performances in two core 
divisions - fashion retailing 
and clothing. 

The fashion business saw 
profits fall to £3m from £4m as 
the group tried unsuccessfully 
to attract younger customers, 
while the clothing division 
reported reduced gains of 
£3 2m. against £5 2m. after clos- 
ing its south Wales uniform 
factory. 

The decline was offset by the 
thread division - the largest 
business - where profits rose 
marginally to £46. lm from 
£45.9m and improvements in 
all its other operations except 
home furnishings. 


financial officer, said the loss 
last year was estimated at 
DKrlbn-DKrl2bn. 

Mr Rennemo said cost reduc- 
tions resulting from the 
merger, which created 
Europe’s largest producer of 
polyethylene and polypropyl- 
ene. played a significant part 
in the improved performance. 

Mr Rennemo cited several 
gains from the merger. He 
pointed to tower costs for head 


Europe, where it already has 
projects imrier way in Poland 
and the Czech Republic. 

The group has already 
announced that it might sell 
its 2.4 per cent stake in Dan- 
one, another French food 
group, to finance its future 
expansion. 

Mr Dumon estimated the 
value of the Danone bolding at 
about FFrlJSbn. 

He also forecast a “substan- 
tial improvement" in net prof- 
its for SaintrLouis this year. 

The group last year saw net 
profits slip to FFr7l7m from 
FFrt74m in 1992. 

The chairman envisaged 
static profits from sugar 
during 1994. with an increased 
contribution from prepared 
meals and a significant upturn 
from the paper business. 


The figures were also flat- 
tered by sharply reduced inter- 
est payments of £142m from 
£26. Lm. after the conversion 
last November of £97.7m worth 
of its 725 per cent convertible 
preference shares. 

Mr Bain said the group 
would be paying a foreign 
income dividend for the first 
time. Under the scheme, intro- 
duced in the last Budget, com- 
panies can relieve surplus 
advance corporation tax by 
paying dividends out of their 
substantial overseas earnings. 

Earnings per share, adjusted 
to treat the enhanced scrip div- 
idends as rights issues at less 
than the full market price, rose 
from a restated 4.6p to 6p. The 
shares rose 6p to 226p. 

Lex, Page 16 


DKr250m 

office stall, a str eamlin ed sales 
force, lower research and 
development costs, and lower 
costs arising from operating 
the Neste and Statoil petro- 
chemical operations at Sten- 
ungssund in Sweden as a sin- 
gle operation. 

Borealis forecast a better 
second half, when growing 
demand for plastic raw materi- 
als is expected to lift 
prices. 


Merck rises 
19% with 
upbeat view 
for full year 

By Ian Rodger 
In Zurich 

Merck, the stock market listed 
Swiss holding company for the 
international interests of the 
German chemical group 
F. Merck, has reported a is per 
cent rise in first-half net 
income to SFrlOlm (S77m) on 
sales up 2 per cent to 

SFrl-37bn. 

Merck said it expected a con- 
tinuing positive trend in terms 
of sales and earnings, and Mr 
Hans Joachim Longman n, 
president, forecast double-digit 
profit growth for the fall year. 

Mr Langmann mid that “the 
results of a large number of 
individual measures aimed at 
increasing efficiency will 
become apparent in the second 
half of 1994". 

The group's turnover in 
Europe was up 3 per cent to 
SFr859m hi the first half while 
North America gained 5.8 per 
cent to SFrl44m. 

Pharmaceuticals sales were 
down 4 per cent to SFr564m, 
while sales of chemicals 
advanced 16.3 per cent to 
SFr357m. 

Revenues from laboratory 
products were up 2 per cent to 
SFr447m. 

Operating profit was up 8.6 
per cent to SFrl89m. 

Banesto agrees 
to sell stake in 
winery business 

La Corpora cion Banesto, the 
industrial holding company 
within Spam’s Banco Espanol 
de Crtdito (Banesto), has 
agreed to sell its 67 per emit 
stake in the winery Bodegas to 
Bodegas y Bebidas for 
Pta4.51bn ($34 .5m), AP-DJ 
reports from Madrid. 

Bodegas and Bebidas is 
owned by Banco Bilbao Viz- 
caya (BBV). Bodegas is the top 
exporter of wines from Spain’s 
Rioja region. Jn 1993, it posted 
a profit of Pta500m on sales of 
around PtaGbn. 

The disposal forms part of 
Banesto’s gradual sale of non- 
banking assets, ordered by 
Banco Santander when it took 
a majority stake in April. 


W ith its asset write- 
down yesterday, Fos- 
ter’s Brewing Group 
took a step toward solving sev- 
eral strategic problems it faces 
in the UK in brewing and pub 
retailing. 

On the brewing side, Cour- 
age, the second-largest UK 
brewer, is suffering like the 
rest of the industry from 
declining beer consumption 
and intense competition. Some 
industry observers have even 
questioned whether Foster's 
would stay the course. 

On the pub side, it stands 
over the next few years to lose 
supply agreements and ties to 
pub estates that account for 
some 25 per cent of its output 
It thought it had found the 
solution to these problems four 
years ago in a complicated 
agreement with Grand Metro- 
politan, the UK food and 
drinks group: Foster’s was to 
commit itself to brewing; while 
GrandMet would concentrate 
on pub retailing, allowing each 
group to use its strengths. 

TO that end. GrandMet sold 
its brewing activities, includ- 
ing file UK production of Carls- 
berg Pilsner and Budweiser, to 
the Australian group to 
enhance Courage’s portfolio. 
GrandMet and Foster’s com- 
bined their pubs in a 5050 joint 
venture, Inntrepreneur Estates 
(IEL), which GrandMet In 
effect runs. 


Inntrepreneur was dogged 
from the start by its fhmnriai 
structure. Both parties loaded 
It with, debt so they could 
extract cash from the transac- 
tion. However, pub asset val- 
ues fell rapidly during the 
recession, forcing Foster’s and 
Grand Met to put in more 
equity in order to maintain 
hanking covenants. 

IEL, which has an estate of 
some 6^00 pubs, has also found 
trading difficult Foster's gave 
it some hope yesterday, saying 
IEL would achieve “a modest 
profit" for the first time in the 
year to September, due in part 
to lower interest costs. The 
City had been expecting 
break-even at best 

“IEL is motoring along quite 
favourably, " Mr Bob Williams, 
managing director of Grand 
Metropolitan Estates, said yes- 
terday. 

In spite of this pick-up, Fos- 
ter’s has to address two ques- 
tions with IEL: 

• its agreement to supply beer 
to EEL runs out in 1998; 

• GrandMet has indicated it 
would prefer to focus on IDV, 
its international spirits busi- 
ness, and food activities such 
as Piflsbury. “TEL is not a key 
part of that strategy,” Mr Wil- 
liams said. 

More urgently, Foster's win 
next year lose an agreement to 
supply beer to the Chef and 
Brewer pub and restaurant 


chain, bought last year by 
Scottish & Newcastle from 
GrandMet. Although Foster's 
wfll continue to supply beer to 
bigger Chef and Brewer outlets 
for a further five years, Scot- 
tish & Newcastle will clearly 
want to increase sales of its 
own beers. 

In spite of attempts by the 
UK government, through its 
“beer orders”, to bring greater 
separation of brewing and 
pubs, all large British brewers, 
except Courage and Guinness, 
still have estates. Guinness, 
however, is a special case 
because its strength lies in a 
powerful international brand, 
leaving Courage with a stiff er 
sales task than its domestic 
competitors. 

F oster's will say only 
that it is reviewing all 
its strategic options in 
the UK. Fop many industry 
observers, however, buying a 
large chunk of the IEL estate 
would at least guarantee some 
sales volume. 

Price, however, could be an 
issue. Foster's and .GrandMet 
now value their combined 
equity in IEL at rassm ($338m). 
They also have more than 
£50Qm of IEL debt or loans on 
their books. Foster’s, therefore, 
might have to pay about £500m 
to buy most of the pubs, leav- 
ing the rump to be sold to a 
management buy-out or piece- 


meal to one or more of the 
newly-established pub chains. 

Fortunately for Foster’s, its 
year-end results announced 
yesterday carried a good oper- 
ating contribution from Cour- 
age. The UK brewer contrib- 
uted operating profits of 
A$1 74.4m (US$130. lm), down 
from A $208 2m a year earlier. 
They were essentially flat, 
however, allowing for the 
impact of a change in excise 
duty in the UK, and currency 
translations. 

Courage’s sales fell to 
A$2.19hn from A$2J9bn, with 
its beer volumes flat in a 
declining market 
- “Courage has delivered some 
of the best beer numbers the 
industry has seen in the past 
year," said Mr Geoff Collyer, 
an analyst with Nat West Secu- 
rities. Coupled with the write- 
down and talk of strategic 
changes, “Foster's is announc- 
ing, in effect that it's here to 
stay.” 

The UK performance was 
helped by cutting some A$50m 
out of Courage's annual operat- 
ing costs of A$900m, as part of 
a continuing effort to increase 
productivity. Its marketing 
expenses also rose sharply in 
tbs first half as Courage, along 
with other brewers, shifted 
some of its financial fire-power 
away from steep trade dis- 
counts to marketing in search 
of market share. 


ests by raising its stake in Gen- 

Coats overcomes patchy demand 


Borealis cuts losses to 

By Hilary Barnes 


* 






AGF Group 1st half 1994 

biZT EARNINGS: FF 1,044 MILLION 
PREMIUM INCOME: FF 34.6 BILLION 


Our first half results an very encouraging; they reflect on improvement in insurance fundamentals 
and a significant nduction in losses from the banking sector. They have still not yet reached the 
level that I would like for the future, but are an important step on the road to a recovery 
in profitability. 

Antoine Jeancourt-Galignani, Chairman of AGF 


INSURANCE BUSINESS 


Consolidated premium income for the first half 
totalled FF 34.6 billion. 59% was generated from 
non-life insurance and 41% from life insurance. 

OiNMM.I DATED FIRST HALF PRFMIUM INCOME 
(FFM.'-wfl 


Contribution of main subsidiaries to consolidated net 
earnings before amortization of goodwill: 


1993 


30.2 


(FF millions ■ 

1994 

1st half 

1993 

1st half 

1993 
fun year 

Belgium/Luxembourg 

Ilf 

85 

284 

United Kingdom 

142 

53 

126 

Spain 

(46) 

(9) 

(91) 

Ireland 

28 

49 

8\ 

Other countries 

124 

61 

Mi 

Total 

359 

239 

5M 


1993 


316 


1994 


34.6 


INSURANCE BUSINESS IN FRANCE 
Premium income for the first half amounted 
to FF 21 billion, mainly derived from AGF VIE 
(FF 10.4 billion) and AGF 1ART (FF 9.1 billion). 

Consolidated first half premium income 


iFF bill: wO 

1992 

17.9 

1993 

20.0 

1994 

21. a 


Administrative and distribution costs dropped 
from 3.5% to 3.1?i of mathematical reserves for 
AGF VIE premiums and from 26.0% to 25.4% 
for AGF I ART premiums. 

In non-life insurance, measures to improve 
earnings resulted in a reduction in the loss ratio, 
net of reinsurance, from 85.8% to 83.2%. 
Insurance business in France contributed 
FF 1,407 million to the Group's first half earnings. 

INSURANCE BUSINESS OUTSIDE FRANCE 
Premium income of FF 1 0.7 billion for the first 
half was mainly achieved by AGF International 
(excluding the Aachener und Munchener Group), 
up 9.7%. 


The recovery in non -life Insurance continued in most 
countries, in Spain, the takeover of (Jnidn Y el Fen be 
Espanol was effective as of 30 June and will enable the 
implementation of a stringent recovery plan. 

REINSURANCE 

Premium income for the first half totalled 
FF Z9 billion, including FF 1.7 billion from SAFR. 

The contribution to the Group's consolidated 
first half earnings is estimated at FF 24 million. 


BANKING. FINANCIAL 
AND REAL-ESTATE HOLDING ACTIVITIES 


The banking and financial holdings contributed 
a combined loss of FF 214 million compared to a loss 
of FF 232 million in the first half of 1993. Results 
from Banque du Phenix improved considerably - 
contributing a loss of FF 98 million compared to a fell • 
year loss of FF 1,357 million in 1993. 

Camptoir des Entrepreneurs (29.7% owned by AGF) 
contributed a loss of FF 103 million to AGPs 
first half results, compared to a foil year loss of 
FF 1 ,205 million in 1993. 

On the other hand, contributions from BFCE and the 
main real-estate subsidiaries continued to be highly 
satisfactory. 


GROUP NET EARNINGS 


Consolidated first half net earnings for the AGF Group 
totalled FF 1,044 million, representing an increase 
on the 1993 full year figure of FF 977 million. 


BECAUSE TOMORROW IS DECIDED TODAY 








FINANCIAL times TUESDAY SEPTEMBER 6 1994 


★ 

INTERNATIONAL COMPANIES AND FINANCE 


19 


Peregrine hurt by 
market downturn 


By Louise Lucas 
In Hong Kong 


Peregrine Investments, the 
Hong Kong-based merchant 
tanft* has reported a 5 per cent 
increase in firet-half net prof- 
its, to HK$398m (US$51 ,5m) 
from HK$380^m. 

Th e company’s usually 
strong performance was held 
in check by the downturn in 
Asian equities markets which 
followed the lifting of 
short-term US interest rates, 
Mr Philip Tose, rh airman, 

For each of the three years 
to December 1992 the group 
more than doubled profits; last 
year earnings rose 43 per cent 
toHK*86&5m. 

Falling stock markets and 
dwindling volumes led to 
a sharp redaction in corporate 
finance and securities activity, 
particularly in the second 
quarter. 

Id the first haif^ thn company 
invested in a new division. Per- 
egrine Fixed Income, which 
was set up with a team 


poached from Lehman 
Brothers in Hang Kang. 

New offices were qpened In 

the S3Z months in Mprdrfr and 
Zurich, and plans are under 
way for a Bahrain office to 
serve Middle Bast investors 
interested in south-east Asia. 

Warnings per share, feilcm ng 

a fully diluted haste , iifehed up 
to HK5065 from HKS0.64 in the 
same period last year. The 
interim dividend is to be hold 
at 25 cents. 

While turnover more than 
doubled, to HK$6.4bn from 
HKS3bn, the operating profit 
was virtually flat at 
HK2294.9m. 

Mr Tose said the group 
would continue to diversify 
into business areas such as 
fixed income, direct invest- 
ment operations and global 
trading of convertible bonds, 
depositary receipts and war- 
rants. 

HO expected a more stable 
second halt although uncer- 
tainties over interest rates »wd 
inflation would persist 


Profits ahead by 21% 
at Mayne Nickless 


By Nikki Tat In Sydney 

Mayne Nickless, the Australian 
transport and security services 
group, saw profits after tax and 
abnormals rise by 21 per cent 
in the year to July 3. 

The company made A$69.5m 
($52m), compared with A$57.4m 
previously. 

The results, however, were 
muddied by a significantly 
increased abnormal item, but a 
sharpfy-lower tax charge. 

Abnormals took A$70.8m 
before tax, compared with 
A$5lm last time, largely as a 
result of a restructuring in the 
Australian transport oper- 
ations and a mixture of clo- 
sures and retrenchments in 
Europe. The total tax charge 
fell to A$41^m from A$56.3m. 

At the operating level, 
Mayne made a pretax profit of 
A$181.9m, compared with 


A&64ikn In the previous year. 
Revenues were up by 2.6 per 
cent at A$2 Mul Tknriing s per 
share before abnormals were 
up by 13 per cent at 41 cents. 
The final dividend is 17 «aib a 
share (against 15 cents), after 
an interim of 16 cents (15 
cents). 

The company reported 
encouraging progress from its 
core Australian transport ser- 
vices business, and earnin gs 
from the Health Care of Aus- 
tralia business also nudged 
ahead. 

In Europe, operating earn- 
ings overall were up by 23 per 
cent, in spite of competitive 
price pressures faced by the 
U£ express freight subsidiaries 
and continued losses and the 
Spanish Transports Helguera 
business. 

Operating profits in the US 


rose by 9.4 per cent 


Commerzbank AktlengeseUschaft 

U.S.$ 2BOJOQOJDOO Subord i n a ted Floating Rate 

Notes Due 2002 


In accordance with die provisions of the Notes the following notice 
is hereby given; 

Interest Period: September 6, 1994 to March 6, 1995 1181 days) 
InUme t Date: 5% m. 

Coupon Amount: U.SA 125 l 68 parlL&f 5,000 Note 
KISS 2S138 per U-S-S 10,000 Note 
USX 2,51189 per U-SS 100,000 Norn 
Payment Date: March & 1996 


Frankfurt/Main, September 1994 

COMMERZBANK S 



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Co-operation replaces competition 


S outh-east Asia's tag com- 
panies axe increasingly 
co-operating in order to 
exploit more folly the area's 
robust economies, and leading 
the charge are Malay sian and 
Indonesian concerns. 

“Over the last flew months 
we have seen a sudden surge 
in business activity between 
Malaysia and Indonesia," said 
Mr Anwar Ibrahim. Malaysia’s 
deputy prime minister, on a 
recent investment wriagfom to 
Indonesia. “Companies in our 
two countries are i warning to 
co-operate rather . than 
compete." 

Though Malaysia Indon- 
esia have strong cultural, 
racial refigkxxs WnVa , there 
have often been sharp political 
differences between the two 
countries. Corporate contacts 
have been few and trade 

Kmtterf 

The catalyst fear the recent 
flurry of cross-border corpor ate 
dealings was a meeting 
between President Suharto of 
IndriTiAgie and Dr Mahathir 

Mohamad, Malaysia’s prime 
minister, at the end of last 
year. Since then, deals have 
been announced on a regular 
basis. 

• Indonesia has agreed to 
import Proton cars manufac- 
tured by Malaysia's Perusa- 
haan Otomobil NasionaL In 
return, Malaysia will buy air- 
craft manufactured by Indones- 
ia's Indnstri Texbang Nusan- 
tara (IPTN). Proton says it will 
export about 2£00 of its cars to 


iwifonpafo riming the next year 
and event uall y plans to assem- 
ble cars there. Malaysia has 
not said how many Indanesian- 
made aircraft it intends to buy. 

The deal Is controversial 
Other car importers in Indon- 
esia have been angered by 
reports that FT Citra Lamtoro, 
thp local c o m p an y which has 
been appointed as Proton dis- 
tributor, will be exempt from 
300 per cwit Indonesian duties 
imposed on most imported 
vehicles. 

PT Citra is controlled by Mrs 


TTflnrifpmtf R nkma fia, fl w eldest 
daughter of Mr Suharto. 

• One of the year’s more 
unusual corporate deals came 
in February when Indonesian 
»riri Malaysian interests took 
control of Lamborghbii, once 
the pride of Italy's sports car 

my ry 

Mr Hutomo Manriala Putra, 
Mr Suharto’s youngest «>n , haw 
a SO per cent stake in Mega- 
tech, the Bermuda-registered 
company which owns Lam- 
borghini. Other shareholders 
are Mycom, a listed Malaysian 
ggrwfng company, and the Mal- 
aysian police investment fund. 

• In April two of south-east 
Asia’s wealthiest businessmen, 

Mr Robert Kuok and Mr Liam 
Sloe Liong, announced they 
were teaming up to develop 


sugar plantations and refining 
operations on the Indonesian 
island of Sumatra. 

Mr Kook, a Malaysian Chi- 
nese, controls a business 
empire with interests ranging 
from beach resorts and hous- 
ing schemes to ownership of a 
controlling interest in Hong 
Kong's South China Morning 
Post group. Mr Idem, an Indo- 
nesian Chinese, controls Indon- 
esia’s largest business group, 
with interests ranging from 
n ood l e making to emwAwt man- 
ufacturing. 


• In mid-July Bari to Pacific 
Timber, one of Indonesia's 
largest companies and the 
world’s lftarifnp exporter of ply- 
wood, said it would purchase 
about 70 per cent of a small, 
loss-making Malaysian build- 
ing supplies company listed on 
the Kuala Lumpur exchange. 

I ndonesian companies anx- 
ious to go public and raise 
funds for expansion are 
envious of Kuala Lumpur’s 
highly liquid stock market. 
The Jakarta exchange is con- 
siderably smaller and less 
developed. 

Under the terms of the daal 
Bari to will inject a significant 
part of its funds into the 
Malaysian company and so 
achieve a “back-door’' listing 


Kieran Cooke reports on a surge in 
activity between Indonesia and Malaysia 


on what is south-east Asia's 
biggest exchange in terms of 
total capitalisation. 

The deal has been backed by 
the Malaysian and Indonesian 
leaders, but it has also been 
criticised. Such corporate man- 
oeuvrings are coming unde r 
increasing scrutiny from Mal- 
aysia's Securities Commission. 
In Indonesia there is criticism 
that Barito, controlled by Mr 
Preyogo Pangestu, an Indone- 
sian Chinese businessman 
closely linked to the ruling 
family, is not investing 
company fluids inside the 
country. 

• Last month Renong, one of 
Malaysia’s biggest conglomer- 
ates, and the Indonesia state- 
owned Bank Rakyat Indonesia 
agreed to set up a SlOOm ven- 
ture capital fund in Indonesia. 
Its aim is to help medium-sized 
industries in that country and 
promote links with their 
Malaysian counterparts. Again, 
tiie deal is supported by both 
governments. 

Renong has close links to 
Malaysia’s United Malays 
National Organisation, the 
dominant political party in 
Malaysia, while Bank Rakyat 
is one of Indonesia's largest 
banks, with assets of about 
S12bn_ 

“We encourage investment 
from the east and west in our 
countries, " says Dr Mahathir, 
“but we should also promote 
investments and co-operation 
between neighbouring coun- 
tries.” 


The Fmaocial Times plans to 
. ^pdb^i:»_sarvey on 

TMftfKteW UK 


*\ t * 

on Thursday, Octei>or 6. 


The survey will provide an In-depth report on 
developments and opportunities In this sector 
and will be of interest to the 28,000 business 
people involved In decision making about fuel 
and energy who are readers of the Financial 
Times.* 

If you would like further Information about 
advertising opportunities In this survey please 
call: 


BILL CASTLE on +44 71 873 3760 
Fax: +44 71 S73 3062 

of write to him at: Financial Times. One Southwark Bodge. 
London SE1 9HL 

FT Surveys 


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Independent and 
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20 


FINANCIAL TIMES 


TUESDAY SEFTCSMRER 6 1994 



PosGoU 


POSEIDON 

GOLD LIMITED 

ACN 007 511 006 

REPORT OH ACTIVITIES FOR THE 
YEAR ENDED 30 JUNE 1994 


SUMMARY GF PRODUCTION 


PosGokt 

Interest 


V nr ended 
30 Jun 1994 
Group Equity 
Share Share 
ffl (at) 


Year Ended 

30 JUM 1993 
Group Equity 

Share Share 

M M 


PosGoU Direct Interests 

moo 

423,138 

423.138 

368,614 

368,614 

MLGM 

75 £0 

230,645 

174,368 

219,383 

165,853 

NFM 

49*8 

205,895 

102,289 

170,674 

85,303 

GMK 

2758 

440.319 

118,058 

396,914 

94.101 

TOTAL 


1,299,997 

817.853 

1,155.585 

713.871 


SIGNIFICANT EVENTS P0R THE YEAR 

• Consolidated operating profit up 9% to US$57 million, after tax and 
outside equity interests 

• Second and final dividend of US$0,036 per share, franked to 75% 

• Average equity mine operating costs of US$214 per ounce 

• Equity share of gold in resources increased to 12.1 mifBon ounces 

• Raised US$190 million from oversubscribed 10-year gold denominated note Issue 

• Commenced US$73 minion development of Big Bell underground mine 
and US$64 mfifflon expansion of Super Pit treatment plant 

• Identified significant gold zones near two Australian mines and In Turkey 

Hate: Annum qnotttf to US dollars are Aastn&n Man converted jt tte ate ol AS1.00 - USS0J3 

Poseidon Gold Limited fPosCokf) manages both direct interests in gold mining operations and indirect 
interests in a number of Australia's largest gokf mines through its major shareholdings in M LeysfranGold 
Mnes limited (MLGM) . North Flinders Mines limied (TiFW) and Gold Miles of Kalgoorfe Lknited CGMQ . 

Reports on activities tor the quarter aid year can be obtained from the Company Secretary: 

Poseidon Gold Limited. 100 Hutt Street, Adelaide. SOUTH AUSTRALIA 5000 
Telephone: +618 303 1700 - Facsimile: +618 232 0198 


Bank of America’s Emerging Markets and 
Continental Bank’s Global Emerging Markets 
have combined. 


As a result of the merger between 

BankAmerica Corporation and 

Continental Bank Corporation, Continental Bank has 

been renamed Bank of America Illinois. 

Global Emerging Markets and Secondary Loan Trading 
will be located at the address below. 


Bank of America Illinois 
162 Queen Victoria Street 
London EC4V 4BS 
Telephone: 0171-236-7444 
Fax: 0171-860-5048 


m 


Bank of America 


(tank at America JBnob Member <rf SFA 


F INANCIAL TIMES 

LONOOM . PARIS . Humwn " new r o m - TOKYO 


3 


MANAGEMENT REPORTS 


AUTHORITATIVE 


MARKET 

REPORTS 


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* Bankini' A 1‘imtiice ■ Eiu.-r<»v 
Environment - Insurance * Media 
Pfiii rmaceui icals • Property - 
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FOR FURTHER 
INFORMATION CALL: 

+44 (0)71 814 9770 

OR FAX 

+44 CO) 71 814 9778 


INTERNATIONAL COMPANIES AND FINANCE 


Baby Bells call on Hollywood 

Phone and entertainment groups are linking, writes Patrick Han crson 


L inks between the tele- 
phone and entertain- 
ment industries in the 
US have traditionally, been 
restricted to phone companies 
employing actors and celebri- 
ties to appear hi their televi- 
sion advertisements. But that 
relationship is changing. 

In the past year, the big 
regional telephone companies 
have been beating a path to 
Hollywood’s door, seeking to 
forge alliances with entertain- 
ment groups a nd fiire and tele- 
vision makers, hiring pro- 
gramme production executives 
and exploring Joint ventures 
with other industry powers, 
such as talent agencies. 

Why the enthusiasm? The 
telephone companies have the 
technology to provide two-way, 
or interactive, television pro- 
gramming to phone customers 
via broadband communications 
lines. But they do not have the 
product - in toe shape of mov- 
ies, video games, educational 
programming arid television 
shows - to send to customers 
over those lines. 

As Mr Jack Grubman, tele- 
communications ^Tirinui i y ana- 
lyst at Salomon Brothers, says 
of the phone companies: 
“These guys don’t know any- 
thing about P iit p Ha rniTiAn t " 
But Hollywood does - which 
explains why the Baby Bails 
have been rushing to Los 
Angeles to talk to com panies 
such as Walt Disney, which 
probably originates and distrib- 
utes more entertainment prod- 
ucts than any other in the US. 

Those talks have borne fruit 
Last month, three Baby Bell 
regional telephone companies 
- Ameritech, BellSouth and 
Southwestern Bell - 
announced a joint venture 
with Disney to create interac- 
tive video programming car- 
ried on the phone companies' 
home video networks. 

Each of the three has begun 
to build the distribution ser- 
vices for entertainment pro- 
gramming. Ameritech is spend- 
ing $4.4bn to provide video 
services to 6m of its customers 
in the Midwest by the end of 
the decade. Next year, Bell- 



Love at first sight three Baby Bells are embracing Walt Disney 


South will start testing interac- 
tive multimedia services to 
12.000 homes in Georgia, and 
Southwestern Bell plans to 
have a video-on-demand sys- 
tem for customers in Texas by 
1996. Disney will help provide 
the phone companies with the 
films, cartoons, and television 
p r ogr a m mes. 

Hot to be outdone, three 
other Baby Bells - Nynex, Bell 
A tlantic mid Pacific Telesis - 
not to be outdone, are report- 
edly close to si gnin g a ghnilar 
agreement with Creative Art- 
ists Agency, Hollywood's top 
talent agency. 

CAA has moved beyond 
representing actors, directors 
and writers, and is heavily 
involved in programming for 
flima and television. Any d*ai 
is likely to involve the agency 
agreeing to help commission 
and produce programmes for 
the phone companies. 

The phone companies have 
been tapping the entertain- 
ment Industry lor executives to 
run their programming 
operations. 

For example, Mr Patrick 
Campbell of Ameritech. 
responsible for co-ordinating 
the company's venture with 
Disney, was previously presi- 
dent of Columbia TriStar Home 
Video, and Ms Heidi Diamond, 
Amen tech’s head of consumer 


marketing and sales for its 
video and interactive services, 
used to work at the Nickel- 
odeon television channel 
The movement of talent hae 
not been just one-way. Earlier 
this year, CAA hired Mr Robert 
Kavner, AT&T’s multimedia 
chief. 

These manoeuvres are armed 
at preparing tor when the gov- 
ernment pa****? legislation to 
deregulate the phone and cable 
television industries. 

T hat legislation, still 
wending its way 
through Congress, will 
allow phone companies to pro- 
vide television programmes, 
and cable companies to provide 
plume services. When the time 
comes, the phone companies 
want to have the progr amming 
in place to wire to their 
customers. 

As Mr Peter Shapiro, senior 
ransnifemt in rahip «nH tele- 
communications at Arthur 
D. Little in New York, 
explains: “All the RBOCs 
[regional bell operating compa- 
nies] are looking to build a 
broadband network and 
develop interactive television 
multimedia services. Their one 
area of real vulnerability is in 
the supply of program- 
ming ... What timy want to grt 
their hands on is the supply of 


programming to prime tint* 
pump for their own systems 
when that's allowed." 

Plume companies are eager 
to secure programming 
because those with a head 
start when deregulation 
arrives stand to make a lot of 
money. The three Baby Bells 
+hflf have linked with Disney, 
for example, serve more than 
50m consumers across the US. 
while the three phone compa- 
nies reported to be negotiating 
with CAA serve 46m customers 
between them. 

While the phone companies 
are linking with Hollywood 
through joint ventures and 
other alliance s, few expect to 
see them buy a programme- 
producer - such as a studio - 
outright That would be taking 
too T n n c h of a risk, says Mr 
Shapiro. 

“It would be dose to insane 
for an RBOC to put dovro 
money and buy a movie studio. 
But getting in early to see if 
they can develop new forms of 
programming with companies 
that can do programming, that 
may not be so crazy ,* he says. 

The Baby Bells are pre- 
vented from owning program- 
mers by federal restrictions on 
cross-ownership in the tele- 
communications and entertain- 
ment industries, points out Mr 
Chubman. 

In spite of the recent flurry 
of activity across the increas- 
ingly-blurred borders between 
the telecommunications and 
mt gr i aimnwit fndnstrfes, there 
is still a long way to go. 

The phone companies' 
expansionist dreams of provid- 
ing customers with everything 
from RimK entertainment and 
educational televisions shows 
to computer games »«i shop- 
ping services, will not be real- 
ised for several years. And dur- 
ing that titnp the mips of the 
game could change. 

“These are early days for 
these sort of ventures. A lot 
will happen in toe next couple 
of years as the nature of pro- 
gramming becomes better 
defined, and toe roles of the 
participants are better under- 
stood,” says Mr Shapiro. 


FT-Actuaries World Indices 


On June 23, the FT-Actuaries 
World Index Policy Committee 
announced that Thailand and 
Brazil would be included in toe 
World IntHces from October 1 
1994, subject to satisfactory 
resolution of several outstand- 
ing technical issues. The com- 
mittee has decided that Thai- 
land and Brazil will be 
from November l 1994. to the 
World Index and all relevant 
regional indices. 

The addition of both new 
markets was postponed until 
November 1 in response to 
comments from index users, 
some of whom have expressed 
concern about the substantial 
lead-time required before Brst> 
time investors can participate 
in toe Brazilian market 

Simultaneous with the intro- 
duction of Brazil, FT-AWI 
Mexico will move on to a same- 
day calculation basis from its 
current one-day lag, and a new 
Americas regional index, con- 
sisting of the US, Canada, 
Mexico and Brazil will be 
added to the daily table. 

When new countries are 
added to the World Index, it is 
necessary to set initial index 
levels. These wifi be US dollar 
index values derived from the 
value for the World Index on 
October 31 1994. 

There will be a slight modifi- 
cation from the usual practice 
for the Brazil index level in 
local currency. Normally an 
index in local currency is cal- 
culated as a function of the 
index level in US dollars, the 
current exchange rate, and the 
exchange rate from December 


31, 1986. In the case of Brazil, 
years of hyperinflation would 
result in an Unpractically large 
number for toe local currency 
index. 

To adjust for this, the 
exchange rate from December 
31 1986 will be multiplied by a 
factor which will scale the 
index to a level comparable to 
that of the Brazil US dollar 

irate*. 

Following comments from 
users of the World Indices, the 
committee has also decided 
that to reflect as accurately as 
practicable conditions for for- 
eigners trading in Thailand, 
the fellawing guidelines will be 
used to price Thai shares, 
including the prices used to 
start the index. 

L Foreign board prices will be 
used where the aggregate of 
foreign holdings are greater, 
equal to or less than three per- 
centage points below the per- 
mitted foreign limit (see 4 
below). 

2. Domestic board prices will 
be used in all other cases. 

3. The World Index Policy 
Committee will, for toe pur- 
poses of determining toe type 
of price to be used, review toe 
latest aggregate levels of for- 
eign holdings and the individ- 
ual foreign limits at its quar- 
terly meetings. Any changes in 


the type of price used for indi- 
vidual lines of Thai stocks will 
be announced after each quar- 
terly meeting and im plement ed 
at the start of the next quarter. 
There will be no changes in 
types of prices used during a 
quarter. 

However, the practice of 
making preannounced adjust- 
ments to companies’ investibil- 
ity weightings daring a quarter 
wifi continue to be applied to 
all countries. Thai companies' 
investibUity weightings will, 
where appropriate, take into 
account any changes in the 
permitted foreign limits for 
individual lines. 

4. Every day before toe Thai 
index is calculated, all constit- 
uent lines priced from the for- 
eign board will be reviewed. If 
the foreign board price for any 
line is unchanged from the pre- 
vious day but there has been a 
price movement in the domes- 
tic board price, a calculated 
foreign board price will be 
determined as follows: 

Calculated foreign board 
price = today’s domestic board 
price x (yesterday’s foreign 
board price used in the calcula- 
tion of the Thai index/yester- 
day's domestic board price). 

Where the foreign and 
domestic board prices are 
unchanged, the latest price 
used in the calculations of the 
index will be carried forward. 

The constituents of Thailand 
and Brazil are as follows. The 
investihility weightings are 
correct at the time of publica- 
tion but may be subject to 
amendment prior to the launch 
of the index. 

Thailand: (D after a Thai 
stock indicates that a domestic 
price wifi be used and F that a 
foreign board price will be 
used. The figure after each 
pflnv* refers to the company’s 
investihility weighting). 
Advanced Information Services 
(D - 40 per cent); Asia Securi- 
ties Trading (F - 30); Bangkok 
Bank (F - 25); Bangkok Land (F 
- 20); Bangkok Metropolitan 
Bank (F - 25V Bank of Asia (F - 
25); Bank of Ayudbya (D - 25): 
Banpu (D - 30); Charoen Pok- 
phand Feedmifi (F - 40); Chris- 
tian! & Nielsen (Thai) (D - 39); 
CMIC Finance & Securities <F - 
25); Dhana Siam Finance & 
Securities (F - 25); Finance One 
(F - 35); First Bangkok City 
Bank (F - 25); General Finance 
& Securities (F - 25); HemarqJ 
Land & Development (F - 25); 
Industrial Finance Corporation 
of Thailand CD - 49); Interna- 
tional Broadcasting Corpora- 
tion (D - 40); International Cos- 
metics (F -30); Krisda 
Mahanakom (D - 20); Krung 
Thai Bank (F - 25); Land & 
Houses (D - 25); MDX (D -20); 
Natural Park (D - 49); Nava 
Finance & Securities (F - 25); 
NTS Steel Group (D - 22); 
Padaeng Industry (D - 49); Pha- 
tira Thanaktt (D - 20); Property 
Perfect (F - 15); Quality Houses 


(F - 25); Regional Container 
Lines (D - 30); Samart Corpora- 
tion (D - 30V, Securities One (D - 
25V Shinawatra Computer & 
Communications (D - 35V, Siam 
Cement (D - 25); Siam City 
Bank (D - 25); Siam City 
Cement (D - 25V Stem Commer- 
cial Bank (D - 25); Telecom 
Asia (F - 13); Thai Farmers 
Bank (F - 25); Thai Military 
Bank (F - 25); Thai-German 
Ceramic Industry (D - 49V TPI 
Polene (D - 90); Union Asia 
Finance (D - 15V Univest Land 
(F -25); Wattachak (D - 24). 

Brazil: (mvestibflxty weight- 
ings are 100 per cent, and all 
lines are preferred stock, 
unless stated otoswise). Ara- 
cruz Cehiloso; Banco Bradesco; 
Banco do Brasil; Banco Itau; 
Brasmotor; Centrais 
Brasileiras (Electrobras) B 
pref.; Companhia Cervejaria 
Brahma; Companhia Energe- 
tics de Minas Gerais (CemigV 
Companhia Energetics de Sao 
Paulo (CespV. Companhia Side- 


rurgica Belgo-Mtoeira ordinary 
(49) and pre£ Companhia Suz- 
ano de Papel E CetoLoae; Comp- 
anhia Vale do Rio Doce ord (24) 
and prat Companhia Vidraria 
Santa Maria ard (49V Duratex; 
Industrie Slab in de Papel E 
Celulose; Investimento Itau; 
Leyas Americana aid (49) and 
prefi Petroleo Brasileiro (Petro- 
bras); Petrobras Distribuidora 
BR; Siderorgica Tobarao; Tele- 
comm unicacoes Brasileiras 
(Telebras) ord (42) and pref; 
Telecommunlcacoes de Sao 
Paolo (Telesp); Usinas Siderur- 
gicas de Minas Gerais (Usimi- 
nas); White Martins ord (49). 

A p r elimin ary list of the con- 
stituents for FT-AWI Thailand 
and Brazil Large and Medium- 
Small Cap indices iniU be avail- 
able from Nat West Securities 
Limited ( 031-243 4258} and Gold- 
man. Sachs & Co (0101-212 902 
6777) on October 25. 1994. 

The final list wm be aoaOable 
after the changes are effective 
an November 1 1994. 


Casino posts 
threefold * 
profits rise 
to FFr56m 

By Alice Rmvatlwm in Paris 

Casino, the French super- 
market group, yesterday 
announced a threefold increase 
in interim not profits to 

FFr55. 9m ($10m> for the fast 

half of this year from FFrWAm 
in the same period of 1993 due 
to a general improvement in 
trading activities. 

Mr Antoine Guichard, chair- 
man, said Casino was changing 
its status from a partnership to 
a public limited company. 

This reflects a long-term 
trend in French industry. Sev- 
eral large groups have made 
similar changes by abolishing 
the old commanditi actions sys- 
tem under which small groups 
of shareholders in effect con- 
trol the company. 

Casino has been controlled 
by Euros la. a legal vehicle 
belonging to toe Guichard fam- 
ily and institutional investors. 

Mr Guichard said such a struc- 
ture had played a critical role 
in the company's development 
since its foundation in 1898 but 
the commandite actions con- 
cept had since become "less 
and less valid or justifiable’'. 

Casino reported a modest 
improvement in trading activ- 
ity during the first six months 
of the year. 

Interim sales rose 1.6 per 
cent fo FFr29.38bn from 
FFr28 J2m with operating prof- 
its up 26.7 per cent at 
FFr331.5m from FFr261 -8m. 

Casino attributed the 
iiK reagp in trading margins to 
the benefits of the merger with 
Rafiye supermarkets group and 
to general improvements in 
cost control 


Revenues at 
Schindler fall 
2.4% at midway 

By (an Rodger in Vienna 

Schindler, the world's second 
largest elevators and escalators 
group after Otis of the US. said 
its revenues in the first half 
dropped 2.4 per cent to 
SFx2.16bn ($L5bn). 

No profit figure was pub- 
lished, but the group said it 
expected net income for the 
frill year to be slightly below 
the SFrl68.6m reported for 
1994. 

It predicted that full-year 
operating profit would be 
broadly in line with last year's 
SFr 150.5m because of continu- 
ing unfavourable market con- 
ditions. 

Sales of elevators and escala- 
tors fen 7.5 per cent in the first 
half to SFrl.81bn, sales of 
rolling stock gained 15.3 per 
cent to SFxiSBm and revenues 
from the recovering Also com- 
puter services subsidiary 
jumped 64 per cent to SFrI87m. 

Total new orders were up 45 
per cent to SFr2J2bn. and 
orders on band at the end of 
June were SFr2£5bn, 0.4 per 
cent lower than at the end of 
1993. The group said the 
SFr51m in new orders for 
rolling stock was nearly double 
the level In the year earlier but 
was below expectations. 


These securities were placed under Regulations and Rule J44A under the Securities Act 
of 1933 and may' not be offered or sold in the United States absent registration or an 
applicable exemption from the repstmtion requirements. These securities having been 
previously sold, this announcement appears as a matter of record only. 

THE BANK OF NEW YORK 

is pleased to announce 
the establishment of a 

SPONSORED 144A GLOBAL DEPOSITARY 
RECEIPT (GDR) FACILITY 


for 



SIV Industries Limited 

fmxporated in the Republic of India with limited liability 

under the Companies Act,l956) 


THE 

BAN! 



For further information regarding The Bank of New York’s DR Services, 
please contact Kenneth A. Lopian (212) 815-2084 in New York, or Gary Pteck 
(852) 840-9806 in Hwg Kong, or Bhaskar Ghose (91-22) 204-4941 in Bombay 


*» 

*«• 












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KfU'imes at 

■vliindlcrfaf 
•< at mid?. 


* « 


nii * 


- , x \ s i 

>. 4 


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,L 


FINANCIAL TIMES TUESDAY SEPTEMBER 6 1994 


INTERNATIONAL companies and finance 


Unease awaits Tokyo SE floats 

Privatisations are putting prices under pressure, writes Gerard Baker 


H istory, said Earl Marx, 
toads to repeat itself 
twice - the first tfcne 
as tragedy, the second as force, 
investors in the Tokyo stock 
teerket, though improbable 
candidates to heed those 
words, are increasingly ner- 
vous that shares there may be 
about to prove the veracity of 
Mata’s theory. The fear is that 
the market may be about to 
repeat its precipitous fall of 
last year, on the back of a 
substantial increase In equity 
supply. 

Last autumn, the Nikkei 
index lost more than 20 per 
cent of its value in a month, 
following the Ill-starred debut 
on the stock exchange of the 
privatised railway company JR 
Bast. An already nervous mar- 
ket was flooded with Y2,000im 
(SiObn) worth of shares from 
the floated company. The extra 
supply was too much, for a 
weak market arid it collapsed 
muter the weight. 

This year, if Marx is ri gh t, 
tragedy could lurk in the form 
of a pair of companies with the 
identical acronym JT: Japan 
Telecom and Japan Tobacco. 

The first of the JTs tests the 
market today, when shares in 
Japan Telecom start rfwwg fo g 
hands. Traders yesterday were 
anxiously awaiting the listing 
- which represents a cash call 
of more than Y150bn and is 
thought by many to be over- 
priced. 

However, next month an 
even tougher test will be set by 
the arrival of Japan Tobacco, 
the privatised tobacco and 
foods manufacturer. That flota- 
tion will drop more than 


Y900bn on the market 

What worries investors is 
that between them, fire two 
companies will inject even 
more equity into the stock 
marke t than JR East last year, 
and that that can have only 
dire consequences for share 
prices again this year. 

“When you increase supply 
by tM granrr nfr pitn g market 
where demand is still very 
weak, you could be In for trou- 
ble, - says Mr Nefl Rogers, 
equity strategist at UBS Tokyo. 

Analysis by Nfldco Securities 
Research suggests that share 
prices are pot under extreme 
downward pressure when 
annual equity financing by 
Tokyo Stock Exchange-listed 
companies is greater than 15 
times the value of average 
daily turnover. 

Without the two JTs, the 
total value of new equity finan- 
cing fm: the correrct year would 
be about Y4,600bn, with an 
average daily turnover of 
about Y250hn to YSOObn. 

These figures already 
suggest a strain on prices. 
However, the extra injection of 
funds from the two issues 
raises the total finan cing 
figure to Y5.700bn 
substantially more than 15 
times trading levels. That may 
be too much for the market to 
tolerate. 

And there are additional 
concerns that the prices set 
for both Telecom and Tobacco 
are too high. At Y4.7m and 
YL44m per share respectively, 
most analysts agree the offer 
prices are well above fair val- 
ues, and are nervous about the 
trend among many institu- 


tional investors to bid well 
below those prices in the 
auctions. 

Some analysts, however, are 
eager to point out important 
differences between this year’s 
and last year’s offerings. They 
say there are reasons to believe 
the market may find the Jib 
more digestible. 

For one thing, institutions 
are much more cautious about 
the issues this year, and that 


N&dnt&SInde* 

22.d0d>— ' 



may Itself limit any damage 
should they not go wefl. 

Last year, investors were 
convinced that the JR lisHng 
would bolster the wider equity 
market As a result there was 
heavy futures buying shortly 
before the listing. 

The substantial premium on 
equity futures encouraged 
traders to short the futures 
against the underlying jetncR w 
When the JR stock disap- 
pointed. these investors were 


forced to sell their positions at 
a loss. This Itself shied about 
another Yl.OOObn to equity 
supply! 

This time, institutions are 
less optimistic about the 
issues, and have not built up 
the arbitrage postions of last 
year. TT you look at the big 
investors' positions this year, 
you can see that they have 
been much more cautious than 
they were before the JR list- 
ing," says Ms Kathy Maisui, 
strategist at Goldman S afjra in 
Tbkyo. 

Perhaps the main reason for 
believing that history may not 
repeat itself, however, is that 
Japan’s economic fundamen- 
tals are In better shape this 
autumn than last. 

The JR East difficulties came 
at a time of growing unease 
about the pace of recovery, a 
sentiment that was exacer- 
bated by the disappointing 
autumn interim results season. 
This year, there is move opti- 
mism that recovery is broadly- 
based and that it will be 
reflected in corporate earnings. 

However, there remains a 
nagging suspicion among trad- 
ers that a pom 1 performance by 
the two JTs could swing senti- 
ment firmly against equities 


The level of individual inter- 
est in the Japan Tobacco issue 
in particular has been high. 
A big fUgflp p nmtmgnf when the 
shares begin trading could set 
back the prospects of a wider 
return to the equity market by 
individuals for a l o n g hww 
W ithout that investor confi- 
dence, the prospects for the 
Nikkei are highly nnrprtain 


NEWS DIGEST 

Loss at US 
business hits 
Southcorp 

By NBdd Taft in Sydney and 
Laura Tyson In Taipei 

Southcorp, the Australian 
packaging, wine and appliance 
manufacturer formerly known 
as SA Brewing, yesterday 
announced a 2.4 per cent rise, 
to A$121^m (US$90. 4xo), in 
annual operating profits after 
tax but before abnormals. 

However, after abnormals, 
profits plunged 5&5 per cent to 
A$49Rm. The reason was a 
one-off charge of A$68.7m, 
mainly related to write-offs 
and restructuring costs at 
its troubled US water heater 
business. 

Sales for the year were L6 
per cent lower at A)R25bn. 

Southcorp said teat its pack- 
aging, wine and Australian 
appliance businesses were 
“very satisfactory". 

The wine business performed 
particularly well, in spite of 
competition in the domestic 
market, with sales rising 11 per 
cent to A$352m, and pre-tax 
profits Jumping 35 per cent to 
A$62m. 

However, the US water 
heater business incurred a 
US$I&3m loss, leading to a 20 
per cent decline in pretax 
profits from the appliance 
division. 


Santos blames weak 
prices for decline 

Santos, the Adelaide-based 
energy group which recently 
bought a one-third interest in 
the Anglia gas field in the 
North Sea, reported an 1&2 per 
cent fall in operating profits 
after tax and abnormals in the 
SIX months to the end erf June. 

Santos made A$101.3m 
(US$75. 6m), compared with 
A$l2&3m previously, after an 
abnormal surplus of A$37.0n, 
against A$33-7m. Sales were 
A$3T2Jhn, against AgSSSJSm. 

It blamed the downturn in 
profits on lower world liquids 
price s and the stren gthening of 
the Australian dollar. 

Asset sale lifts North 
Broken Hill Peko 

Lower iron ore and uranium 
prices and increased expendi- 
ture meant that North Broken 
ffin Peko, the Australian min- 
ing and resources group, 
reported a fall in profits before 
tax and abnormals to A$20Llm 
(USSLSOm), AJTLlm less than 
in the previous year. 

However, due to a A$6&2m 
abnormal surplus from the sale 
of non-core businesses and 
investments, profits after tax 
and abnormals were up 
A$53Am to A*18&3m. Total 
sales were A$L13bn, compared 
with A$L51bn. 

Operating profits from the 
iron ore business fell to 
A$l 29.1m from A$l3&lm; ura- 
nium was down to A$46.lm 


from A$75m; and the equip- 
ment business fell to A$29.&n 
against AfSQJim. 

However, the gold interest 
contributed A$flAn, up from 
A$4.8m, while the forestry 
products business, meanwhile, 
contributed A$51m, against 
AfSOAn. 

Paper group strong 

Yuen Foong Yu Paper Manu- 
facturing, Taiwan's leading 
paper maker, pasted net profits 
of T$860m (US$32.7m) in the 
year to June 30 against T$449m 
a year earlier. 

• Tatung, the Taiwanese elec- 
trical appliance maker, saw 
after-tax profits in the year to 
June 30 rise to T$2£8bn from. 
T$L34hn last time. 

First Pacific in talks 
on bank divestment 

First Pacific, the diversified 
Hong Kong group, is negotia- 
ting the divestment of at least 
80 per cant of its wholly -owned 
Californian retail bank. United 
Savings Bank, to the Salim 
family, large shareholders in 
the company, Reuter reports 
from Hong Kong. 

“The planned divestment of 
a majority interest in United 
Savings Bank will allow us to 
continue to reallocate signifi- 
cant resources to Asia, and In 
particular to the groups tele- 
communications activities 
where investment require- 
ments are substantial.'' manag- 
ing director Mr Manuel Pangfi- 

tn«T\ said. 


Cash call 
from Asian 
consortium 

By WBK&n Barnes 
in Bangkok 

Bangkok Expressway, the 
construction consortium led 
by Kumagal Gum! of Japan 
and ffrmrwd far Thai and for- 
eign banks, is to be floated on 
the Thai stock market. 

The company, which is 
building an elevated motor- 
way for Bangkok, plans to 
raise about Bt3.4bn ($13 6m) 
by floating 129m new shares, 
or 25 per cent of the 
company. 

This suggests the initial 
public offer (IPO) price will be 
around Bt£6 per share. The 
company has projected return 
on equity of 16 per cent a year. 
The IPO will put the shares on 
a prospective price/earnings 
ratio of around 35. 

Total earnings at the com- 
pany are forecast to rise from 
BtSISm in 1993 to Bt2.75bn 
this year. 

The op eratin g cash flow is 
forecast to grow strongly after 
this year, when a Btl5.7bn 
loan repayment is made. Net 
income is forecast to rise from 
Bt34m in 1993 to Bt327m this 


Solid increases in income 
should be supported when a 
second arm to the motorway 
opens in the next few 
months. 



Sime Darby Group 


PRELIMINARY ANNOUNCEMENT 

HIGHLIGHTS OF UNAUDITED CONSOLIDATED RESULTS 
FOR THE YEAR ENDED 307H JUNE 1994 



turnover 

PROFIT BEFORE TAXATION 

earnings 

extraordinary PROFITS 

EARNINGS PER SHARE 
DIVIDENDS PER SHARE - GROSS 


The profit before tax for the year of RM 903.7 million is 
7% higher than last year. 

Earnings and earnings per share increased by 12%. 


1994 

RM Million 

1993 

RM Mitfion 

8,21235 

7,041.4 

903.7 

840.8 

449.7 

4032 

34.4 

60.5 

Sen 

Sen 

28.7 

25.7 

2UJ 

20.0 




Obayashi Finance 
International 
(Netherlands) B.V. 

¥4,500,000,000 
Floating Rate Notes due t997 

Interest Rate; 4.22% p3. 

Interest Period: 6tfi September, 

1994io 

3rd March, 1995 
Gmjxm A mount: ¥2/157,973 
(on Notes of 
¥100,000.000) 

Payment Dale: 3rd March, 1 995 

% swum «usr intb&mt!onal umib) 

nsariAsm WhSeptorober.W* 


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The Ministry of the Treasury 
of the Republic of Italy 

Global Equity Offering 
of 

1,890,000,000 Shares 



Istituto Nazionale delle Assicurazioni S.p.A. 


Joint Global Coordinators 

Goldman Sachs International Istituto Mobiliare Italiano S.p.A. 


International Institutional Offering 

285,981,600 Shares 

In the form of Shares or American Depositary Shares 


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Dresdner Bank Indosuez Capital 

»»-*« — to • 

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Nat West Securities Limited 
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ttaBan Institutional Offering 

182,114,600 Shares 

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Istituto Bancario San Paolo di Torino S.p.A. 

United States Public Offering 


131,903,800 Shares 

in the form of Shares or American Depositary Shares 


CS First Boston 


Fox-Pitt, Kelton Inc./Wsrtheim Schrod er & Co. 

Umpo nm 

Morgan Stanley & Co. Salomon Brothers Inc 


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Italian Public Offering 

1,290,000,000 Shares 

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My 1994 



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Building Society 
Japanese Yen 10,000,000,000 

Floating Rate Notes due 1995 

For the six; months 

6th September, 1994 to 6th March, 1995 

In accordance with the provisions of the Notes, 
notice is hereby given that the rate of interest has 
been fixed at 4.15 per cent, per annum, and that 
the interest payable on the interest payment date, 
6th March, 1995 against Coupon No. 13 will 
be Yen 2,057,945 per Yen 100,000,000 Note. 

The Industrial Bank of Japan, United 
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FINANCIAL TIMES 


TUESDAY SEPTEMBER 


6 1994 


INTERNATIONAL COMPANIES & CAPITAL MARKETS 


MAN truck unit 
falls into the red 


By Kevfr, Done, 

Motor Industry Correspondent 


MAN Nutzfahrzeuge, the 
German commercial vehicle 
maker, fell into loss In its last 
financial year to the end of 
June but will return to profit 
in the current year, according 
to Mr Rudolf Rupprecht, group 
chief executive. 

The company, a subsidiary of 
MAN, the German engineering 
group, suffered a 9-2 per cent 
fall in production to 32,657 
trucks and buses in 1993-94 
from 35.948 a year earlier and a 
record 41,590 in 1991-92. 

Turnover fell by 4.6 per cent 
to DM6.9bn ($4.4bn) from 
DM7 ibn, and the group next 
month is expected to disclose a 
loss of between DM50m and 
DMIOOm. 

The financial performance of 
MAN Nutzfahrzeuge, Ger- 
many's second largest manu- 
facturer of trucks after Merced- 
es-Benz, has been undermined 
by the steep recession in the 
European buck market 

Pre-tax profits fell to 
DM60.5m in 1992-93 from 
DM506m in 1991-92 and net 
profits to DM3I.5m from 
DM255m. 

Mr Rupprecht said demand 
for commercial vehicles had 
begun to pick ap in recent 


months, led by higher demand 
from MAN’S European export 
markets. 

The value of the group’s 
order-book at the end of June 
had fallen marginally to 
DM2-Jim from DM2.4bn a year 
earlier, but the volume of new 
orders had been rising during 
the first six months of 1994. 

in the year to end-June the 
value of new orders rose by &3 
per cent to DM 6 . 8 bn from 
DM6.3bn in 1992-93. New orders 
from foreign markets jumped 
by 22.6 per cent to DM3.2bn, 
while those from the domestic 
market declined by 2.1 per emit 
to DM3 JSba. 

MAN has been forced to 
restructure during the reces- 
sion and is cutting 4^00 jobs or 
around 16 per cent of its work- 
force. The n umb er of employ- 
ees fell to 25,463 at the end of 
June from 28£17 in mid-1992 
and another moo jobs are to be 
cut during t he current finan- 
cial year, said Mr Rupprecht 

Truck sales in Germany are 
expected to decline further in 
1994 by between 5 and 10 per 
cent said Mr Rupprecht but 
will begin to recover next year. 
Sales have begun to pick up in 
other west European markets, 
however, led by the UK, Scan- 
dinavia, France, Spain and the 
Benelux countries. 


Czech and 
Slovak fund 
offer to 
raise $25m 


UK gilts drift upwards in quiet trading - iii^ 1 


By Antonia Sharpe 
and Martin Brice 


By Vincent Boland ei Prague 


Normandy Poseidon ahead 


By NBdd Tail in Sydney 


Normandy Poseidon, the 
Australian mining and 
resources group which, via its 
Poseidon Gold subsidiary, is 
now the country’s largest gold 
producer, has announced prof- 
its after tax and abnormal 
items of A$85.3m (USS63.3m) 
for the year to end-June. In the 
previous year it made A55&2 bl 
T he result was achieved 
after an abnormal gain of 


A$34.5m, against A$9.78m in 
1992-93. 

Operating profit before 
abnormal items and fa* was 
AJ19L5m, againgt- Aj iflnftm 

Fully-diluted earnings per 
share, before abnormal items, 
were static at 9.7 cents. 

During the year, Normandy 
said that there had been a 12 
per cent increase in gold pro- 
duction, to 1.3m oz, causing 
PosGold to post a 9 per cent 
profits improvement. 


The Czech and Slovak 
Investment Corporation, a 
London-based Investment fond 
managed by merchant bankers 
Robert Fleming, is to raise 
$25m In a share and warrant 
offer to new and existing 
shareholders to finance fur- 
ther investment is the two 
i countries. 

The offer, consisting of up to 
340,000 units each including 
seven new shares and one new 
warrant, at a price of $7&50 a 
unit, is underwritten by Flem- 
ing and Co-managed with. 
S.G. Warburg. 

The offer closes on Septem- 
ber 21. Current shareholders 
ftirimte the IBM Pension Fund, 
Robert Fleming, and Confeder- 
ation Life of Canada. 

The fund, set up early last 
year, has invested $30m in the 
two countries. More than 90 
per cent of the in v estme n t s are 
in the Cfeech Republic. 

Mr Leonard Ingrams, the 
fund’s chairman, raid the pro- 
portion invested in Slovakia 
may rise, depending on the 
outcome of the Slovak general 
election at the end ol this 
month. “Things are happening 
there that we view positively 
bat it depends on the elec- 
tion,” he said. 

The fund invests in a ndx- 
.ture of stock market-listed and 
pwiigfaMi shares and in joint 
ventures between Interna- 
tional and local companies. 

Its portfolio, currently 
worth |35m, indudes a stake 
in British Petroleum’s recent 
$23m Investment in a petrol 
retailing network in the Czech 
Republic. 

The BP joint venture is with 
two investment funds and is 
aimed at extending the UK 
group’s network of petrol sta- 
tions in the Czech Republic. 


UK gilts drifted upwards 
yesterday in quiet futures-led 
trading, ahead of tomorrow's 
monthly meeting on monetary 
policy between the Treasury 
and the Bank of England 

Economic data showing a 
slowdown In MO money supply 
growth for August and modest 
consumer credit figures for 
July had little impact, analysts 
said. 

“The weaker-than-expected 
M0 figures are a hint t hat the 
pace of economic expansion 
may be easing,” said Mr Simon 
Briscoe, UK economist at 
S.G. Warburg. He said they 
were unlikely to lead to a rise 
in base rates from the current 


level of 5.25 per cent after 
Wednesday's meettog. 

“The market view is that 
nothing will happen [on 
Wednesday 1, but there wtU be 
some degree of market 
nervousness,” said Mr John 
Shepperd. chief economist at 
Yamaichi. 

There was little c hang e in 
the yield spread between gQts 
and German bunds, which 
remained at about 140 basis 
points. On Liffe, the December 
long gilt future fell in early 
trading to 100 % from the previ- 
ous close of 1003 , before recov- 
ering to 101 & ^ late trading, 
up % on the day. 


the German economy 
promp te d an early sell-off. The 
market is worried that the 
west gross domestic product 
data for the second quarter, 
due on Thursday, could show 
quarter-on-quarter expansion 
in excess of 1 per cent, which 


GOVERNMENT 

BONDS 


to close far earlier in the cycle 
than expected. 

These worries, coupled with 
concerns about the Bundes- 
bank’s large funding pro- 
gramme. are likely to keep a 
lid on bund prices. On Liffe, 
the December bund future 
stood 0.45 points lower at 89.67 
In the late afternoon in volume 
of 75,473 lots, off the day’s 
worst level of 89-38. 


■ Elsewhere, the yield on 10- 
year Spanish government 


■ Bunds started the week in 
dismal fashion as worries 
about an early overheating of 


would bring the yearly growth 
rate to dose to 2 pa cent 
Ms Wendy Niffikeer, senior 

ponwnmiqt at TRI TwtarnaHnwal 

said that such an acceleration 
in economic growth would lead 
to inflationary pressures and 
would also cause the output 
gap - the difference between 
actual and potential growth - 


■ French government bonds 
were also weaker amid worries 
that recent base rate rises by 
French commercial banks 
would put pressure on the 
Bank of Fiance to do likewise. 
On the the September 

notional bond fixture was down 
0.14 points at the day’s low of 
ii 9 <w late in the afternoon. 


bonds rose 16 basis points to 
11.17 per cent Mr Simon Meggs 
of UBS said the movement was 
driven by worries about the 
continuing negotiations over 
the government’s budget, and 
performances were similar 
along the yield curve. 

“It was a rocky ride today 
and the market may get littery 
if there is no firm news fids 
week," he said. He added that, 
investors were also concerned 
at the possibility of Spain 
frying left out of the core of a 
multi-speed Europe. 

Meanwhile, the yield on the 
10 -year Italian government 
bond rose 3 basis points to 
close at 12.06 per cent, moving 
in line with markets elsewhere. 


Abbey National launches L250bn three-year deal 


By Graham Bowfey 


The eurobond market saw few 
new issues yesterday with the 
US, Canada and Luxembourg 
closed for holidays. However, 
issuance is expected to pick up 
over the next few days with 
both Pearson and the City of 
Yokohama expected to launch 
offerings. 


INTERNATIONAL 

BONDS 


Pearson, the media and 
entertainment group which 
owns the Financial Times, is 
expected to come to the euro- 
sterhng market with a 10-year 
offering , which syndicate man- 
agers expect to amount to 
about JEloom. 

The City of Yokohama is also 
rumoured to be considering a 
10-year fixed-rate eurodollar 
offering of around 2300m, lead- 
managed by Rank of Tokyo 
Capital Markets. 

Abbey National Treasury 
Services launched a L250bn 
offering of three-year bonds 


WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONDS 

Rad Day's Week Month 

Conjon Date Price change YMd ago ago 


Austria fl .000 09m 

Belgium 7.250 04/04 

Canada ■ &500 06/04 

Denmark 7000 12704 

Fiance STAN 8300 06/98 

OAT &500 04AM 

Germany Bund 8.750 05AJ4 

Maly a.500 04/04 

Japan No 110 4.800 08/S9 

4.100 12/03 


86.8700 

HBMnn 

8X8600 

953000 

804400 

i naonan 

98.1830 


-0600 9.62 933 948 

-a 450 8£5 837 7 SI 

- 8.65 8.03 

-1.000 9JQ1 8.75 632 

- 734 7.17 081 

-0340 730 7.76 738 

-0340 7.40 7.19 638 

-0330 1139t 1137 1037 
40.170 4.06 436 183 

40320 430 4.71 4.03 


Italy 

■ NOTIONAL ITALIAN GOVT. BOND 03TP) FUTURES 
CUFFET 200m lOOtha ot 100% 

Open Son price Change ttgh Low Eat vd Open Int 
Sep 9830 99.15 -031 9935 8830 22D53 20301 

Dec 9730 0730 -035 9735 0630 23630 52724 

Mar 9530 -035 0 100 


■ ITALIAN GOVT. BOM) (pm FUTURES OPTIONS (UFFQ Lta200m lOOtha ot 100% 
Strike CALLS — .. — . — ptTTB - 


Nethertanda 

5.750 

01/04 

8a 1600 

-OMO 

739 

7-25 

636 

Spain 

6000 

05AM 

61.6400 

-0.720 

11.18 

1066 

1030 

UKGBts 

6300 

08/99 

90-18 

_ 

837 

832 

8.1* 


6.750 

11AJ4 

87-20 

+1/32 

fLS9 

6*3 

835 


ftOOO 

1008 

103-30 

+3/32 

831 

8.47 

842 

USTneaaey ■ 

7JJSO 

06034 

100-08 

- 

- 

732 

737 


7^00 

11/24 

1QO-01 

_ 

— 

748 

7*3 

ECU {French Govt) 

6.000 

04/04 

64.0000 

-0300 

848 

031 

737 


Pnce 

Dec 

Mar 

Dec 

Mar 

9750 

2 37 

133 

237 

333 

9800 

230 

148 

2.80 

426 

9650 

235 

1.30 

335 

460 


Eat voL tend. Ctee 818 Puts 354. Proriao day's epan hL, Ota 8888 Mi 8161 


London cfcteng. "Now York mkf-ttoy 

| Gross fnchxinQ wttNnkSng tax it 123 par cant pay*!* by i 
Prices: US. UK to raids. ahtn ta dadmof 


YMriK Local malm standard. 


Staur UUS Merretate 


US INTEREST RATES 

4pm (Sep 2) 


Treasury BBs and Bond VWds 


Spain 

■ NOTIONAL SPAfSH BOND FUTURES jMEFF) __ 

Opan S«tt price Change Low Eat vaL Open InL 

Sep 8734 8737 -0.75 87.10 8636 40304 86,167 

Dec 85.70 85.79 -098 8536 8534 8,773 24338 


-098 8638 


BMrebannto 

Utah 

foUnbtf MaraMfcai- 


(hemti. 
7% Trarnmti 
8>i Thai Boat 
Mi Sh oarih.. 
- Oaaiav — 


4JB 

Heojeto 

815 

4.7, 

Three year 

843 

466 

Hriffr _. 

03, 

53} 

UHrar 

730 

553 

SOyere 

740 


■ NOTIONAL UK GB.T FUTURES (UFfiQ* £50300 32nds al 100K 


BOND FUTURES AND OPTIONS 


France 

■ NOTIONAL FRENCH BOND FUTURES (MATfF) 



Opan 

Sett price 

Change 

Hgh 

Low 

Eat vd 

Open W. 

Sep 

101-07 

101-21 

0-04 

101-18 

100-28 

2787 

33630 

Dec 

100-20 

101-00 

0-03 

101-0, 

100-06 

32371 

66100 

Mre 

- 

100-12 

0-03 

r 

- 

0 

0 


■ LONG GOT FUTURES OPTIONS (UFRQ £50000 64thaaMOOH 


Open Settprice 

Change 

Hgh 

Law 

EsL vai 

Open M. 

Swe 

Dec 

CALLS 

PUTS - 


Sep 112.86 112.76 

-0.66 

113.00 

11254 

105,480 

83374 

Price 

MV 

Dec 

Mar 

Dec 11230 ,1132 

-0.68 

112.00 

11130 

22.198 

53362 

lOI 

24» 

2-48 

2-08 

322 

Mar 111.36 11130 

-U 66 

11136 

11132 

7 

4395 

102 

1-40 

2-19 

2-40 

3-69 

■ LOetO TERM FRENCH BONO 

OPTIONS 

(MATff) 



103 

1-14 

1-59 

3-14 

4-38 


Strike 

Price 

OCt 

— CALLS - 
Dec 

Mar 

Oct 

— PUTS — 
Dec 

Mar 

113 

037 

134 

- 

137 

2.05 

- 

114 

038 

030 

- 

1.80 

2.60 

- 

115 

0.13 

035 

- 

. 

337 

_ 

116 

- 

036 

. 

- 

. 

_ 

117 

0.01 

030 

0.51 

- 

446 

- 


Eat VO. tool Ota Puts S13M ■ Pmrtqus day’s open ML. Cab 1IUD1 PUB 236392. 

Ger ma ny 

■ NOTIONAL GERMAN BUND FUTURES (UFFET DM25O00Q lOOtha of 10096 


Ecu 

■ ECU BOND FUTURES (MATIF) 

Opan Satt price Change Hph Lots EslkL Open int 
Sap 8132 81.04 -058 8130 8132 1307 5,187 

Dec 8070 8054 -036 8072 8030 329 3/485 



Open 

Sott price 

Change 

Ugh 

Low 

EsL vtf 

Open M. 

Sop 

9032 

90.70 

-024 

9034 

9039 

74546 

68261 

Dec 

90.10 

69.72 

-040 

aan 

8938 

75606 

77168 

Mar 

- 

89.(7 

-040 

- 

- 

0 

1093 


■ US TREASURY 1 BOND FUTURES (CST) $100300 92nda ol 10096 (Sep 2) 


■ BUND FUTURES OPTIONS |UFFq DM250300 porta oM 0096 


SWro 

Prioo 

Oct 

Nw 

CALLS — 
Dec 

Mar 

Oct 

Nw 

PUTS 

Dec 

Mar 

9950 

0.76 

1.16 

1.41 

1.60 

054 

034 

1.19 

133 

aooa 

060 

090 

1.13 

136 

078 

1.16 

141 

2.19 

9050 

030 

067 

089 

1.18 

138 

1.46 

1.67 

249 



Open 

Settprice 

Change 

High 

Low 

Bd. *oL 

Open Int 

Sep 

103-20 

103-04 

-0-15 

104-16 

103-03 

43367 

182.466 

Oce 

102-27 

102-09 

-0-16 

103-25 

1Q2-OB 

232,700 

245372 

Mto 

102-13 

101-18 

-0-17 

103-02 

101-18 

775 

7310 


E at w*. idol Cob 4839 Puts 8635 Prmous tufa opan ML. Crta 148081 Puts 148028 


■ NOTIONAL MEDIUM TERM GERMAN GOVT. BOND 
HBOemUFFEJ* DM2SO.OOQ lOOtha of 10096 


Opan Satt price Change 
9073 -007 


Low Eat writ Open ta 
0 78 


-lisp m i 

■ NOTIONAL LONG TSTM JAPANESE GOVT. BOND FUTURES 

(LIFFE) YlOttn lOOtha ot 10096 

Open Ctoas Qtatgt Ugh Low EsL vo* Open W- 
Sep 10013 - - 10021 108.10 135 0 

O«0 107.18 - - 10731 107.10 1278 0 

■ LITE us aa d i Otdad on MV. M Opan mtartat toe. am tor p w toua d«. 


UK GILTS PRICES 


M~ _18W_. 

m raccE+ar- wan u* 


*d_ -1804- 

Rad Ptta£+or- K* lew 


— 1Md_ -1994- 

Mjtoa pi WWcet ♦>- lorn 


State* (Lima ap to RNTtaara) 

Tram 58c IBWti 881 

13x1005 11.72 

bdl »Cta 1000-05 — MG 

tw*w 1999 U2 

TWai IZVlKTBBStt 11-96 

14* IMG 1234 

IS^pciaeStt 1358 

Ettel3%pe 19060 1213 

Conrerakre ,0pc 1996 155 

Treat Cw7pe1MTt*_ 7.14 

Urns I3tmc 1297*$ 1137 

bcfl ,0%JC 1W7-. 8S 

llaaaMiPC in7tt. 858 

Ml 15*1097 1U7 

ft«lM8 136 

lttel7%K,«03tt 7.48 

TrtaafrtoTBM 8 8 13 - 7-10 

14pc 1998-1 1135 

TraaaiSijpi 12.47 

BCU75C19K (OH 

IrttoftpcIBSBtt 018 


830 10 DH 
E39 102*1 
533 BM 
833 103* 
077 10SU 
7X0 TO 
7.26 112% 
729 109i 
7.80 104g 
750 aSiVrt 
7.73 I11B 

754 nsn 
as ioin 
0.10 116^ 
825 104* 
821 06{|a1 
838 85>s 

847 1171a 
8321244)8 
8 «r 1124 
043 non 


-4 ISM 
-4 107* 

— HA 

— lore 
-U 118% 

«7A 
-% 121|| 
-A 1T7H 
** 11?A 
-% 100% 
-A 121H 


-* 114* 
-* 110* 
-A ins 
-A 114ft 
-A 106* 
-* IS 
-A 131 jj 
-A 1404 
-4 125ft 
-A 1184 


BmurwnMPi 

Bdnzitpcim HUT 

TranlO% 8 C lMB 878 

TwaOpcionti on 

Gaaaaataa I 0 %pcisaa_ 850 

IMaNGtolSfi 

tpamm 853 

Tiao I3pe 2000 1001 

IflpeSDQi 843 

7pc20Q1 1± 7.G8 

ncaon* tab 

Mpcam 

tituxm 835 

10K 2003 830 


1351 13fi* 
831 107J] 
837 W& 
837 106ft 
- HU 
833 10111 

an <19% 

072 is* 
858 Sift 
858 81* 

878 inaH 
887 88 ft 
879107*10 


1284 
-A 121* 
-% lOlfi 

121ft 

— - 100 * 
-A us* 
-4 mi 
-4 1224 

=eiss 

-a us* 

43 


Tress 1 1 %pc 200!-< — 1023 
100Q Fondte3%pc 10S4_ US 

COBMttoto 9%pc 2004 — 004 

TM64ue2004S 771 

OnthpcZOOS 001 

'“75 Toon Z%pe 200S-6 1031 

,ir. wo 

109% BPC2MM8 045 

laqj TiaajIMtfc 20B3-7 — 1818 

B7S, Trass B%pc 3007 tt 058 

,1111 13%K 20M-B 1034 

105U Traas9pc30QBTT 674 

10111 

118* 

1Q3U 

HA 

lieu OHrRMnftM 

isn I** 03*2008 842 

nth TNaaS 1/4**710 7,75 

103% Q*w 898152011 885 

I)WI 80C 2012ti 864 

naat5%8c200B-12tt- 7 AG 

TM8K2D1W 838 

7%po WM900 — . 834 

Treat 8%04 20T7tt 851 

113* Bca 1 2K 2013-47. 820 


885 112IM 
736 72* 
872 106* 
850 87* 

an ,05ft 

003 18% 
80S 83ftrt 
812 B4%D 
002 119% 
an 06 ft 
803,28%* 
60, 103* 


-4 128ft 
-% 884 
-A 125* 
-4 109% 
— * ,29% 

-i 143* 
-% 11 % 
-% 111 % 


aeVB &S) 2ft 33B108*rt -& 208% ,B7ft 

— (ISUJ 332 1W* -* 113* TQ 6 * 

2%pcVl (789 850 171186%rt 175% 166% 

2%pe VS (789 141 874 imU — 173% 158* 

4%peTW (1389 341 372 108* 118% 107% 


4%pC"0*tt (1389 341 372 108* 

3nr® m 5 348 3J2 188& 

2^C08 (7851 333 174 ,53% 


— 118% 

= 33 


-* HO* 
-% 119* 


2%pcH P*3) 158 875 158* — 175% 154% 


-% 119* 
-4 ,Si& 
-A 124ft 


an 841s 

844 80ft 
85* 103% 
853 ,04% 
831 73% x) 
an 85*s 
540 82ft 

845 182% 
898 130ft 


-A 115 * 
-4 as* 
-* mu 

-4 127% 

-A »% 

-* "re 

-% 114% 
-* 128% 
-* 158% 


2%PC13 S3 338 878 130ft 148% 129% 

Z^aCrifl 1(819 301 179 138* 157* 134% 

2%0C 7S (830 3JB 178 131* — 152ft 128% 

ihrevn — 97 . 7 ) an 179 in* -* 120 * m% 

4%K’am (135.1) 338 87* 110* — 128ft HJ5% 

ft Mp ecthe tert l e dathpllon rsa on preftetod httaeon atfl) 1096 
«id (2) 5%. (fa} flflurea In pararth aa aa show RPI twee for 
IndartnB 0 a 8 moaBa prior to toauS anri ham baen aSuatad to 
ieGact,ri ii aa» iy of HPI to 100 to 1087. C na wra fa i tacaar 
3LB46. m tor Dvanttar 1893: 1419 fcr Jidy 1804: 1443. 


Other Ffarad brtsrawt 


_Wd— , — 1884 — 

ftotoa fcd Rad Pifcaeier- HU Law 


2* MtoR00i1T%2DW — 841 

Ml oar H)%*ZD09_ US 
R7% rton,1%K»t2— - 838 

nMCWPzKlO 872 


101% 

ns* 525"- 

104* ““"V 

H>4 HSU*3%p«»- 
8 SQ 0bw3%pe , BIM.. 
108% hanspeven 

84* ctsadi 2 %pa 

108 ft 1taa.2%pe- 


-H 30% 

m 

n 

y* *4% 

-* 38% 
-% 37% 


838 
872 

OpeCVlBBi US 

npew-a 1 M* 

ifnftDQaMe, Spa W11- 1038 

LtBh13te2D08 1037 

Uwpod3%pcha8. — 840 

^ UC9B8 M 823 

^ MndwW11%teSSB7- 1032 


8 ft 118* 

882 „05 
as* iib% 

- 07% 

- 1 «% 

- WB 

832 142 

- 127% 

- 37 


-u i42* lies 

H3 138% log 
— 142 118 

-% 110% 86% 

1 BS% 100 

-% lift. 100 

-a I?® 


5 UK.ftt.SpcV 428 

33% 3%fC2(RT. 

20* 4%tc8BB* 

zre lautoSM is^cTooe izm 


831 114% 
810 08% 
441 ISA 
437 128% 
- 187 


— **% 33% 
40% 23% 

— 138% 112 

78 86 % 

— 160% ,28% 

— 148% ,23% 

— 108% 134% 


• *197 atack. ts IMw to maHtoMan m wFSetttort. Q Aittton ban. ad b AtoMri. oaatoo Rrifrptoaa an ahoaa, ta paaidB. 


with a coupon of 1L5 per cent, 
lead-managed by Swiss Bank 
Corporation. 

Syndicate managers said 
that the bonds were fairly 
priced, although they said that 
they were surprised by the rel- 
atively large size of the issue, 
especially with the Luxem- 
bourg market closed. Many 
recent eurolira issues have 
been placed with Luxembourg 
investors. 

‘There is much debate about 
whether the lira market is sat 
urated, ei peclaUy in the three- 
year area, but we are seeing no 
evidence of that,” said one syn- 
dicate manager. 

Compagnie Ge'ne*rale des 
Eanx tapped the D-Mark sector 
with a DMSOOm offering of five- 
year bonds priced to yield 45 
basis points over the five-year 
&A per cent German govern- 
ment bond. 

Around one-quarter of the 
bands woe placed with French 
institutions and a large part of 
the remainder will be targeted 
at retail investors in Switzer- 
land, Belgium and Luxem- 
bourg, according to the lead 


NEW UTTERNATIONAL BOND ISSUES 


US DOLLARS 
KHSMl 


Amount Cwvoa Prtco MstwRy fee* 

m. % % 


Spread Book ' 
Up 


(41 6-5) 100.00 Sopi2001 230 


D-MARKS 

Carapogoto Gtnfcato dm Eaux 
OautschG Ben & Bodoftfj** 


Oct. 1999 O30R +46/8»“fc-99) BHF-Bank/ CCF FftoMUrt 
Oct 1999 020 wgsttntodM Unteabantt 


TTAUAHLVE 

Ahbey NNLfetoaury Swvftm 2S0tei 1130 101Q5S Oct 1997 1.376 SuHm Banfc Con?. 

fttol toma md Ron-caftaOle uriass stated. The yWd spread (over ratawm government bond} at Imnch 9 m ppfltoi lyjha bad 
manager. gOa n-t M * triaattng rote note. R: Ibeed ndlar price; tern aa shorn, al Iho re-dtor tavoL 9 MamaOorai Conwner 
Terminal Servfcm. Prfcfcm: approx 779/94. tedfcatBd canv e retan premium? 5-1046. CalaUe after 3 yn. aub|ect to 140% hunlo. rt 104% 
toAng 1%pa to per. q B-mth Ubor +*%. 


manag er Credit Commercial de 
France. 

The D-Mark market cur- 
rently offers favourable swap 
opportunities, particularly in 
the tour- to five-year area, syn- 
dicate managers said. The pro- 
ceeds from the offering were 
believed to have been swapped 
back into French francs. 

The market also digested the 
announcement on Friday by 
the World. Bank that it plans to 
launch a global fixed-rate dol- 
lar band issim later this month, 
expected to be about $L.5bn. 

The timing of the laimch and 


the maturity of the issue would 
be iWurminnH in li ght of mar- 
ket circumstances in the com- 
ing weeks, the World Bank 
said. 

The market expects the offer- 
ing to have a life of five or 10 
years. The deal will he lead- 
managed by T-riunan Brothers 
and UBS. 

"There is a continuing 
itaiwnii for high quality dollar 
papa, which t his certainly is, 
and we expect this deal to go 
well,” said one syndicate man- 
ager. 

Previous recent global offer- 


ings have struggled to find 
buyers outside the US. “It wfQ 
be interesting to see how modi 
is placed outside the US, 
whether there is now a broader 
interest, particular from Asian 
investors, in the dollar bonds," 
said one syndicate manager. 

Telekom Malaysia is 
rumoured to be assessing 
demand for a $30Qm to tSOQm 
10 -year convertible eurobond 

nffe r i ng , 

The issue will be the first by 
a Malaysian company which is 
rated by Standard & Pom’s and 
Moody’s Investors Service. 


denuinu 


FT-ACTUARES FIXED INTEREST B8XCBS 

Price Mow Mon Day's Fri Acouad 

UKGSte Sep 5 change % Sep 2 Interest 


— Low cotton yi e l d — — Madhan coupon yield— — High coupon yield — 
Sep 5 Sep 2 Vr. ago Sap S Sep 2 Yr. ago 8 ap 5 Sep 2 Vrjgo 


1 Up to S years (24) 

2 5-15 yon (21) 

3 Over 15 yen (S| 

4 irreduuiniiiNwa fi 

5 Al stocks <00 } 


-0.12 120.12 148 

-0.06 130*4 2.14 

-008 15432 131 

-032 177a 2.42 

-O10 13083 1.73 


8.0, 5 yis 
082 15yre 
081 20 ym 
833 knot 
079 


847 &42 035 837 834 648 8.69 838 088 

832 049 7.(77 063 832 7^1 088 088 7.48 

047 045 7.22 063 062 73, 074 073 749 

056 &S3 7.44 


toteriSon KJ% 

Sep 5 Sep 2 Yr. ago 


6 Up to 5 yon 0 

7 Orer G yours (11) 

8 AS stocks (13) 


-003 16073 073 

17443 002 

174.73 090 


3X5 UP toSyre 
346 Ota 5 yre 
348 


Dabanturea «ri Loam 


3.74 

072 

231 ’ 

2.67 

2.65 

1.74 

178 

5 ye* 

3.78 

yWd- 

333 

336 

15 year yield — 

336 

335 

~2S year yWd 


9 DabsOLoana(75) 127.71 -040 12844 230 

ta to gnae tatempdan ytota ere ritan too*. Capon tends Uns 0K-7KK: 


Sep 5 Sup 2 Yr. npo Sap 5 Sep 2 Yr. ago Sep 5 Sep 2 Yr. ago 

731 9L67 930 7.70 9.61 93S &10 935 050 025 

li tem M- 1 HH: Htfc 1116 art we. T Hri ytrid. yto Ysur to date. 


FT FIXED INTEREST INDICES GILT EM 

8 «p 5 Sep 2 Sep 1 Aup 31 Aup 30 Yr ago Hgr UnT 

OovL Sacs. (UK) 9139 91.71 9210 9138 . 91.74 10135 10734 9039 OR Edged bar 
Read Manat 10032 11003 10930 10039 10934 134.14 ,33 37 10733 5teay average 
■ tor rite*. Gorewm aecurtto* Wgh rince co i p atoo n. 12740 gnteSI. tow te.18 (VU7ft. Rad fetaw Npi tace ooo^te 
20 end Ftart MM 102 ft SE uOMy todcee irttaid 1074. 


ACTIVITY 

Sop 2 


1 Aug 31 Aug 30 Aug 26 


Lilians hu 


■ 121.7 84.1 843 821 

893 806 783 773 

13837 pvuag . tow 6038 p/1/7* . Beta MO: Qsremnant t 


707 

773 

rtGtoisnw 


iinu in 1 ri 


FT/ISMA INTERNATIONAL BOND SERVICE 


Lkriid are the Hart I 


0ontt bancto for «ri*to torea ta ai adaqrete aaomtey i 
taMd Bd Oder Cfeg- VWd 


t pricne to 730 pro on S^tamba 5 
tend W OBv Cbg. YWd 


Otter Cttg Yldd 


US. DOUAR SmilCHTS 

MfiByMT«M>6%0}. 

Atosto(%Minoe7%98_ 

Au 0 ka%m 

BtokolTateoS%80 

Began 5% 03 

BFCE7%9? 

Brttth Gee 0 21 

CamteBOB 

Chttag Ntog FVi 5% 9B — 

C2*b6%04 

Capet Europe 8 96 

Qet* Fonder 9% 90 

Dmtak5%8B 

Eta Japan Reiter 8% 04 - 

BCSC8%9S 

EB3 0%08 

S3 7% 08 

as0%97 

Breda Ranee 9 88 

B**m0%96 

BRn BbA Jrean 8 02 

Bgucri Ow Corp 0% 98 

Fated Tta MOt 740 04 _ 

HriaPd 6 %W 

Rnnttl>6toat9%05 

tad Motor Crete 0% 08 

GmBKCapto(9%BS 

GMAC9%88 

hd Ek JGptti At 7% 07 

tote Anar Da 7% 08 

IMrB%28*_ 

Japan Dor Bk 8 % 81 __ 

KmadBrePw-lOBB 

Kcree Bre Rreer S% CB — 

LJC 8 ten 8 97 

Mattoa»*aa*c7%4& 

No nw7%W 

Ontete 7 %Oa 

0aferR>Mbd*S%0t _ 

PtaoCarato7%0S 

tatgds%oa 

ataeeHpta0%08 

QtaMePtavBBB 

StotauyB%98 — 

SAS108B 

8NCF0%88 

Spato6%00 

SMa* NEW 96 

fimdan^a 

9MridiBpcrt8%BS 

Td 9 oBeotata 6 %«_ 
1 tateeMakopateS%ea — 

Tofte Motor 6 % 98 

Unted Nngdam 7% 02 



Watt Bart 8\B7 


. 1000 82 
.1000 101 % 
_ 400 105% 
_ WO 102 % 
. 1000 85% 

_ ISO 102% 
. 1500 10% 

. 1000 103% 

— SDO 90% 

.1003 88 % 

-WO 102% 
-300 108% 

. 1000 w 

_ 830 02 % 

— 103 103% 

_ WO 102% 
-250 102% 
. 1000 US’ 
-200 WG 
-WO W4 
-600 W 2 % 
_ 150 W7% 
- 1500 99% 

.3000 98% 
-300 «S% 
. 1500 97% 

-300 KK% 
-200 105% 
-200 101 % 
-200 102 % 
.3500 82% 

-500 XJ4% 
-350 105% 

. 1350 87% 

_ 200 HJ 1 % 
.WOO 97% 

■ WOO 101% 
.3000 SB 
-200 V&i 
-200 101 % 

. T000 87% 

- 150 107% 

- 200 104% 
-WO 104% 
-200 W7 
-ISO 108 


1600 07% 
.200 103% 


.2600 90% 
-TOO 7tR% 


®% -% 
10ft 

tort -% 

W3 

88 -% 
Wft 
11 % 

XM 

91% ft 
89 

Wft ft 
1 CB% 

07% 

0ft -% 

W3% 

W3% 

W 2 % 

,07% 

Wft ft 

104% 

103 ft 
W8% ft 

«ft ft 
100% ft 
«B% 

07% 

105 

W3% 

Wft ft 
102 % 

82% ft 
105 
Wft 
87% ft 
Wft 
98% 

101 % 

88 % ft 

105% 

87% 

Wft ft 

Wft 

104% 

W7% 

10ft 
07% ft 

W% 


Unfed Kngdar 7% 87 _ 
\MtoWOMto0fti7O5. 


Ware BniOIS 
MfaridteritftO 

WUd Bank ft 00 

— 2000 

— 9000 

— 1250 

8NB3 HMNC SOTNORTS 
AtanDwBekO W 

WO 

Qmdtaqpe4%9B 250 

QBftOt 

— an 

FWnJ7%» 

— 300 



Kobe 6% 01 

— 240 

(Mario 6%tB 

QtarecHyrinSOB 

400 

— 100 



Itatt Be* 7 01 

— 600 

YBtSIlMQHIS 

Bdgton599 

SB 8% 00 

-75000 

tooooo 

Ftendftae 

60000 

teyftoj 

300000 

Jteei Oer 6k S 90 — — — 

193000 

120000 

NMtei'MTdftW 90000 

Nttetaft 97 Smi 


1(1,1 

Sp*i5%02 

125000 


5500 101% 
WOO 98 
2000 20 


Wft ft 882 
96% ft 780 
2ft ft 785 
8ft ft 788 
10ft -1% 688 


ft 800 

525 
430 
ft 528 
ft 804 
ft 8Z7 
&» 
ft 625 
507 
ft 539 
ft 600 
ft 665 
ft 606 

ft 558 
ft 572 


Abbey ffcSTmiyB 03 C. 
AHtootUca1ll|Wt — 

MdiLmiftae 

Damn* 6 % 882 

ffl1O07C 

H*Klfl%97£ 

Hawn Wft 87 E 

KSBOMUnga 1180022. 

uyw%i4 2 

JtpreiDto 887002 

lam Sera 9% 072 

Orftafo T1%0, £ 

P onaganftaBE 

Semn Trtrt , 1 % 99 E 

Tokyo Dec tata 11 (ME - 
Abbey NteonSO 98 NZS_ 

TCNZ Ftl B% 02 NZ$ 

Crete LocdS 01 FFV 

On: da Race ft 22 FTr _ 
SNCF0%07m 


. WOO 01% 
-WO wft 

— iso aft 

-600 94 

-07 103% 
-WO Wt% 

— EDO 104% 
-«B Wft 
-400 W7% 
-200 92% 
-200 9ft 

— WO Wft 
-250 9ft 
-150 WB% 
-150 Wft 
-WO 83% 

— 75 8 ft 
.7000 8 ft 
.8000 WO 
.4000 Wft 


92% ft 943 
tar ft 846 
88 % ft 1030 
94% 880 

104% ft &10 
W*% ft 830 
10ft ft 879 
110% ft 883 
W7% 98* 

9ft 8 Jt 

9ft are 

10ft ft 938 
07 ft 645 
109% ft 817 
108% ft 825 
8 ft ft 906 
100% ft 635 
89% ft 787 
Wft -1 674 

104% ft 788 


ftOATMQ RATE NOTES 


Wft ft 483 
W 6 % ft 481 

wft ft aa» 


81% ft 5W 
102% ft 441 
1W% ft 475 
left ft 320 


1000 90% 
.200 W3% 


Wft 
9ft ft 


.1900 08% 
.8000 08% 


1500 IDS 
.100 W5% 


0ft 

SB ft 

m ft 

105% 


AuaMfttt 

QredR Rndto 7% C 8 

DmMkftaa — — ■■ 
OapkHnanosftOB — 
Datete Bk R, 7% 03 — 

SCftOO 

ffift 00 

MridftOO 

r— 

LABBadorvWueritftOB . 

tenrey B% 90 

OMaftM 

^tai7%a 

BndanBF 


.8000 82% 
.2000 07% 
.8000 96% 
. 1500 91% 
.2000 90% 
.2900 07% 

.1600 aft 

.3000 Wft 

.eon wft 

.2250 80 

.1500 08% 
.1500 Oft 
.4000 07% 
.3600 103% 


8 ft ft 

57% ft 


90% ft 

92 ft 


99% ft 
97% ft 


8 ft 

Wft ft 


80% ft 
87% ft 


Wft ft 


7XB Seeten 4% 90 

7.78 Watt Bn* 6% 02 

558 

785 OIlBtSTMMHra 

737 GentanoeLte9%80LR_ 
660 raotatodMe*a>zauFr. 

738 Wfcrid Bar* 8 98 LfT 

748 ABN AMO ft 00 R 

738 Bark Nad Ovneertel 703 R 

578 ACart a Bteto 10%9BC8 

605 BalCmeda W%B0CS 

738 MMiCbbotte W0BC8 

7.U SlftBSCS 

6BI Bre te Ranee 0% 90 C8 

512 GanSaBCqttrilOVSCB — 

638 NWHfttlOOl C6 

7J0 Nppon TW Td 10 % 80 C3 — 

6SS OntarioBtB CS 

SM OltttolVtet1ft90C8 — 
746 QarKGteiare*1tf%9BC8 

7 Iff Quebec Rw 10% 98 C$ 

854 B^gkoiftOBEu 

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ME BBWSTEoi 

785 Farodd3ttW%9BEor _ 

883 10% CO Ecu 

m Sp*iS0B&W 

733 LUW Hogdon 8% Ot Sai _ 

738 AOCW88A* 

7 XU BPAnrett* 12% 90 A3 

737 Qmn»*M*13%09A0 

883 B07%99« 

732 NSWTtetanranoaAI.. 

854 R*IBmk7V0SA8 

772 &taBkr0tf8O2A$ 

738 80, Am Oort ft, 9 02 AS 

888 UHawi AriTrttlTZBBAI — 


150000 101 % 
2 SOQOO Wft 


lift ft 481 
10S% ft 480 


Wft ft 478 


-WOO 

— 3000 

— looo 

— WOO 99% 
-1500 95% 

— 500 KB% 
160 106% 

— 500 W3 

— 130 106% 

— 276 Wft 

— 300 Wft 

— 400 108% 

— 200 105% 

— 1500 Oft 

— 800 105% 

— 150 Wft 

— 200 104% 
— 1250 102% 

— 1WD W2% 

— 125 WT% 
-1125 Wft 

— 500 TIE 
-WOO Wft 

— IKS KE% 
- 2 M 0 HJft 

— WO Wft 

_ WO 106% 
_W0 118 

-.860 07 

-1000 0 % 

— 125 0ft 

— 300 05% 

— 160 05 

— «0 W 8 


08% -% 740 
8ft -% 737 


wft ■% 922 


104% -% 882 
Wft -% 822 

Wt% -% 510 

105% ft 885 
82% -% 933 

VS -% 90* 

wft ft 880 
W5 ft 518 


AttqrNtdirenaiyftte WOO 

BtocoRareaOn 200 

Balpun*B7EM 500 

BFCE-03B08 8S0 

BtarriaawaBP — 1® 

Ctored eftoa 2000 

CCCE0CS Ecu 200 

Crate Ijorwrts* 00 300 

Stennateft90 WOO 

Deateer Rave * OB DM WOO 

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Rtad n H7 _ M00 

tetendOflB 800 

■*%»-— -2000 

LKB Brefen-VMjatt Rn ft 98 WOO 

l%*A*Pap3a« 000 

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f^«"ft01 — 2000 

1Hadn«tam-%BB, 4000 


comsnBEBows 


Wft ft 888 


104% ft 730 


WB% ft 881 

Wft ft 743 

103% ft 841 

Wft ft 9L1B 

106% ft 830 

lift ft 838 


868 
ft 030 


80% ft 9L73 

88 ft 0188 
96% ft am 
108% ft U4 


taniitfaiAftOS . 

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Orem, 

hnadmere W Her 


« 52% 00 07 


• 280 86 W1% Wft 

— 88 1365* 112% 114 

-500 28875 10ft Wft 
■ 1000 75 78 

-<00 111 138% 13ft 

872 98% Wft 

-BO 864 8ft 8ft 
-200 233U ar% 80% 

- 100 2203 toft Wft 

-2® *23 124 125 

— 86 29077 87% 86 

- 500 503097 01 Qft 


.600 30089 Bt% 6ft 

— » aa 101 % 102 % 

— an 25i iw% iu% 

— Bft 08 99 
•mndtofte 
■Wtodapire 


snwOKrHOHWtTheilrisiiSreiliid to reterepaen Ot 0Mt0drere*( *• muettauad to to nmm rt Ctetooruta. Os.ftMDarea» an te 
WDunwaitAJHIionapana ff tota rt to date* imeeertta»reeindatadCBitote drew tonrifata lto reS M reiAi eaare atomaato ctored i 


UJ II IlOT 0U0OBO HI toB n0ret a ri taddto»irireicBreiatoetoterttaDir.irtata»if*mtetetetobeadtaatitato rii iiiataawtatatorttei 
am mreare prtee rt reqatog rim ta toe bred eta *■ mart resent ptae rf Bre dreee. 


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i *>_ V . 

1 ♦ ‘ 


•• \ 


*et trad 


^KSANCIAJL TIMES TUESDAY SEPTEMBER 6 1994 




• t*., _ 

\.*-V ' 


tree-year l 


At f»OND 


ISSUES 


rVV -r . "«.• v - 


fiV^t «•£»•'»: F* 


COMPANY NEWS: UK 


I 

US activities advance 50% on lower crude prices and synthetic sales 

Rurmah Castrol rises 16 % 


By Andrew Botger 

Burmah Castrol. the 
lubric ants, chemicals and fuels 
group. increased interim pre- 
tax profits by 16 per cent bnt 
said it would be unable to 
repeat in the second half an 
exceptional performance by 
Castrol In the US. 

Pre-tax profits from £8&5ni 
to £LQ&8m in the six to 

June 30, and attributable prof- 
its climbed 15 per cent to 
£50-5m (£44xn). The shares 
closed I4p lower at 891p. 

Mr Jonathan Fry, chief exec- 
utive, said CastroTs us profits 
had risen by 50 per cent, 
thanks to increased sales, the 
move into profit of the new 
synthetic lubricant, Syntec. 
and a fall in the price of erode 
oil at the start of the period 
which had now been reversed. 

In lubricants as a whole, 
trading profits rose 2A per cent 
to £86.6nf (£70m). hi Asia, there 
were strong performances from 
India. Japan, Thailand and 
Vietnam, while Australasia 
benefited from Bmnnniii* recov- 
ery. 

In Europe, although the 
industrial market showed some 
pick up, consumer demand 
remained subdued, notably in 
» Germany, the UK and France. 
Latin America suffered from 
"chaotic” trading rrmtHKnwR in 
Brazil. 

Chemicals also increased 
trading profits by 24 per cent, 
to (£i7-8m). Profits from 


Foseco Metallurgical Chemi- 
cals bounced back by 85 per 
cent, mainly because of the 
restructuring and rationalisa- 
tion which has been completed 
in Europe and North America. 

The group said Sericol Print- 
ing Inis continued to power 
ahpad , and adhesives 
a good first half. Coatings had 
a poor first quarter, although 
the second quarter was stron- 
ger. Fosroc Construction and 
Mining Chemicals suffered 
from difficult trading in 
Europe and a softening in key 
Middle Eastern markets. 

In fuels, trading profits fell 
to £8.5m tram S23£m. Competi- 
tive markets in the UK and 
Sweden combined with eco- 
nomic turmoil in Turkey to 
drive down volumes and prof- 
its. LNG Transportation was 
also down, to £3.2m from £7m, 
mainly because the previous 
period benefited from the 
inclusion of a provision release 
of £&5m. 

Mr Lawrence Urquhart, 
chairman, said the group 
intended to pay op to a third of 
the year’s total dividend as a 
Foreign Income Dividend, 
which would reduce the 
group’s - ongoing surplus 
Advance Corporation Tax prob- 
lem. It declared an interim div- 
idend of 10p, compared with 
16.5p. Last year’s payment had 
been increased In case the use 
of an anhanrpit scrip dividend 
was blocked by the Budget 

Earnings per share increased 



IkMVMn^Md 

From left to right, Lawrence Urquhart, Jonathan Fry and Brian 
Hardy, finance director do not expect to repeat US performance 


by only 9.4 per cent, to 25-6p 
(23.4pX because, of the greater 
number of shares in issue fol- 
lowing last year's enhanced 


scrip scheme and the £32m 
acquisition of TriboL a US 
lub Hrgrrta specialist. 

See Lex 


Flat demand balks British Vita 


.By Tim Burt 

Shares in British Vita fell Xlp to 259p 
yesterday after the foam and fibre group 
said it had been lift by pricing pressures 
and flat demand in tm p nr fa m t maHrafeq - 
A1 though the group saw first-half pre- 
tax profits rise 46 per cent to £23.7im 
(£16-28m), it admitted fhat the figures were 
flattered by sizeable losses last time which 
disguised a more modest increase in oper- 
ating profits. 

"We are not seeing the kind of recovery 
that manufac turers of capital goods are 
enjoying;” said Mr Rod Sellers, chief exec- 
utive. * • 

At the operating level, profits cm con- 
tinuing operations were almost unchanged 
at £21.39m (£20. 08m) and Mr Sellers 
warned that the company’s main markets 
were static or improving only slowly. 

Overall operating profits showed a 
tiAflUhioy near £4m improvement, as the 
group benefited from the disposal last year 
of its debt-burdened Spanish subsidiaries 


- Icoa and Metzeler Tjmiin«rin» - which 
lost £2.62m last time. 

Without contributions from the two sub- 
sidiaries, turnover fell back to £388m 
(£404.4m), but their disposal helped lift 
pre-tax profits, with £550,000 of interest 
receivable, against pa ym e nt s of £99,000. 

“We’ve got rid of the problem businesses 
and althoug h our markets are not boom- 
ing we’ve seen a small upturn in all our 
divisions,” said Mr Sellers. 

That improvement was -helped by last 
year’s rationalisation pro gr a mm e, which 
saw the wor k force cut by 5 per cent to 
12JKI0 and costs adjusted to meet lower 

demand. 

Of the group’s three divisions, cellular 
polymers - the largest - saw profits 
increase 8.6 per cent to £13 .85m (£1 2.78m). 

The industrial polymers . operation saw 
profits rise from £&38m to £2.65m, and file 
fibres and fahrira division moved ahead 75 
per cent to £3. 60m (£3.43m). 

While welcoming the figures. Mr Sellers 
said recent trading had been quiet and it 


was unrealistic to expect a rapid Increase 
in demand. 

Nevertheless, earning s per share rose 25 
per cent to 7p (5.6p), after adjusting the 
1993 figure by adding back the loss on the 
disposal of discontinued operations. 

An interim dividend erf 3.75p (355p) has 
been declared. 

• COMMENT 

British Vita is refreshingly candid about 
its prospects. It admits that its figures are 
fairly limp even after shedding the excess 
baggage which slowed ft down during the 
worst of the recession. But the perfor- 
mance is not bad, given the margin pres- 
sures and increased raw material prices. 
To see any acceleration, it really needs to 
use its P39 5m reserves to ™ica a cash-gen- 
erative acquisition that would also boost 
market share. If it did that, 'then profits 
could exceed the £ATm forecast for this 
year and main* the share s - which reached 
309p in April - worth considering an a 
forward multiple of 18. 


Growth in 
US helps 
Haynes 
to £5m 

By Caroline Southey 

A strong performance fry the 
US operations of Haynes 
Publishing Group, the car and 
motor cycle maintenance 
manual company, helped Hft 
annnal pre-tax profits by 27 
per cent to £6. 04m. 

Turnover moved ahead to 
£25. 7m (£22.8m) in the year to 
May 31, with US sales up 23 
per cent at £125m (£Z05m) 
and UK sales up 5 per cent at 
£12Jhn (£12-2m). 

"As in recent years, modi of 
our growth is expected to 
come from the US, ” Mr John 
Haynes, chairman, said. Bat, 
he added, the board had 
achieved Its objective of 
returning the UK operations to 
their former levels of profit 
Pre-tax profits for the UK 
rose by 23 per cent to £l.Sm 
(£15m). This included a 
write-off of £223*000 largely 
caused fry toe closure of toe 
contract printing business. 
Operating profits for toe UK 
Stood at £2-3m (£2m). 

Mr Haynes said an 
improvement in new titles had 
helped reduce publishing 
losses and additional products 
were being considered. The 
replacement of old machinery 
wonld mean an im pro v e me n t 
in UK capacity. 

The US operation saw 
pre-tax profits grow by 32 per 
cent to £35m (£25m). 
Operating profits moved ahead 
from £3m to Stan. The 
compa ny now has book 
manufacturing facilities mi 
both sides of toe Atlantic 
following the opening of a 
print facility in Nashville hi 
November. 

Despite Mr Haynes’ c o ncern 
about expected rises in raw 
material prices - they account 
for 50 per cent of induct costs 
- Mr Max Pearce, group chief 
executive, was confident the 
current year’s profitability 
would not be affected. 

A final dividend id 5p (3p) 
has been recommended, 
mflktng a total of 9p (65p) cm 
earnings per share 12 per cent 
ahead at 19.6p (1753p). Last 
year’s dividend and earnings 
per share have been restated 
for November’s 1 for 2 scrip 
issue. . 

The shares rose 12p to 450p. 


Paper price rises put 
Bunzl up 26% at £33m 


By Peflfly Hoffinger 

Bunzl, the distribution and 
cigarette filter company, yes- 
terday wrapped up its first half 
with the promise of an 
increased final pay-out »nd a 
26 per cent jump in pre-tax 
profits, excluding goodwill 
writeoffs, to £325m. 

The profits rise was due in 
part to long-awaited price rises 
in the depressed paper indus- 
try, cm which Bunzl depends 
for more than 70 per cent of its 

earnings. 

Mr Tony Habgood, chief 
executive, said paper prices 
had risen by 1 percentage 
point, against a 2-point fall pre- 
viously. They were expected to 
improve farther in the second 

half he written 

Although acquisitions also 
helped the return, he said 
Bunzl frad still achieved under- 
lying profits growth of between 
11 and 12 per cent 

Margins in continuing 
operations rose from 4L6 to 5.1 
per cent 

Given the strong perfor- 
mance, "we expect to be able 
to increase the fiwai dividend,” 
Mr Habgood said. The interim 
was held at lBp, as foreshad- 


owed last year, to adjust the 
balance between first and sec- 
ond half payouts. 

During the first half Bunzl 
sold its building products busi- 
ness for £61xn. The disposal 
resulted in a net goodwill 
write-off of £35m which must 
be taken through the profit 
and loss account. 

Although this has no «*sh 

effect, it left Bunzl with a 
£2.2m interim pre-tax loss, 
against profits of £26m last 
time. Sales were 11 per cent 
higher for the six mouths to 
June 30 at £809-7m. 

Of the group's four core busi- 
nesses, cigarette filters and 
fine paper returned the stron- 
gest growth. 

Fine paper, which has seen 
prices fall by as much as 38 per 
cent in the last three years, 
benefited from the general 
upturn and the withdrawal 
from Sicily. Profits rose by 31 
per cent to £8.4m. 

Mr Habgood said the grow- 
ing market for lower tar ciga- 
rettes had helped Bunzl’s filter 
business return a 31 per cent 
increase in operating profits to 
£72m. 

Paper and plastic disposables 
enjoyed 18 per cent profit 


growth to £19.7m. Plastic prod- 
ucts also returned an 13 per 
cent rise to £5 9m. 

The loss per share was 35p. 
against a 35p profit last time. 
Excluding the goodwill write- 
off, earnings advanced 21 per 
cent to 4.7p. 

• COMMENT 

Tony Habgood appears to have 
confounded the sceptics who 
criticised his strategy just two 
years ago as a misguided focus 
on mature markets. The 
rewards are undoubtedly 
rolling In. So far, they have 
been down to management's 
herculean restructuring 
efforts. Now, with little left to 
achieve on that front, the 
upturn in the paper cycle will 
do its bit for Bunzl. If Habgood 
is not to be caught out. how- 
ever, he needs to look ahead to 
the next downturn. With the 
paper cycle expected to peak in 
1997, Bunzl may have to find a 
sizeable acquisition to keep up 
the momentum. Forecasts are 
for about £7Ln this year, put- 
ting the shares on a prospec- 
tive p/e of about 15.5 times. 
This looks just about right 
for a solidly managed com- 
pany. 


Exceptional gain helps 
Peter Black rise to £12.4m 


By David BJackwefl 

An exceptional gain of £l.lm 
on the disposal of its Factory 
Shops business helped to lift 
annual profits at Peter Black, 
supplier of footwear, cosmetics 
and accessories to Marks and 
Spencer, by more than 36 per 
cent 

Pre-tax p rofi ts for the year to 
June 4 rose from £9.1m to 
£12.4m on sales 8 per cent 
ahead at £124 am, compared 
with £114Jm. 

Mr Gordon Black, joint chair- 
man, aajd the sate of the retail 
and leisure b usinesse s had left 
the group both focused and 
ungeared. That, coupled with 
its cash generating ability, 
would allow it to remain at the 
forefront of the personal care 
and footwear industries, where 
there were dear prospects for 
organic growth. 


Operating profit from con- 
tinuing operations improved 
from £9. 16m to £105m on turn- 
over of £U7.1m (£105 ,5m). Mar- 
gins improved from 8 to 9 per 
cent 

The personal care division 
lifted profits to £5.4m (£4.4m) 
on the back of a rise in turn- 
over from £405m to £44.7m in 
markets described by Mr Black 
as "vibrant”. 

Kn gifch Grains, which sup- 
plies vitamins, dietary supple- 
ments and nat ural medicines 
to m ultiple outlets and chem- 
ists, had a record year. 

Mr Black the group was 
constrained by lack of capacity 
in this market — a situation 
that would change in 12 
months’ time when its new 
£10m factory opens in Derby- 
shire. 

Profits at the footwear and 
accessories division increased 


from £3.7m to £4.6m on sales of 
£67 Jim (£60.6m). The group is 
confident that it can increase 
sales to M&S, which has a rela- 
tively low share of the foot- 
wear market. 

Turnover from the group's 
discontinued retail and leisure 
operations was £7.74m (£9 .4m), 
with operating profits of 
£757,000 (£698,000). 

The proGt from the disposal 
of the Hornsea Freeport retail 
and leisure division, sold after 
the year-end, will be in next 
year’s accounts. 

Earnings per share increased 
to 1556p (ll.tSp) and toe rec- 
ommended final dividend is 
lifted from 2.77p to 355P, giv- 
ing a total for the year of 4.47p 
(3.7P). 

Analysts are expecting prof- 
its for this year to be just 
above gi2m, giving the group a 
prospective p/e of 19. 


I DIVIDENDS ANNOUNCED 


H 


Canadians buy 
holding in Trio 


Lloyd’s attracts US insurer 


Cursnt 

payment 


Date of 
payment 


Cones - 
pondng 
cfiwUand 


By Antonia Sharpe 

Regent Pacific Group, an 
international financial services 
group which is majority -owned 
by Altamira Management of 
Toronto, said yesterday it bad 
bought 9.1 per cent of the share 
capital of Trio H olding s, the 
UK money and securities bro- 
ker. 

“We are keeping an open 
min d about further invest- 
ment," said Ms Jayne Sutcliffe, 
a director of Regent Pacific in 
charge of corporate finance. 
She noted that although 
Regent had invested in -UK 
investment trusts in the past, 
this was its first entry as a 
significant shareholder into an 
operating financial services 
company. 

She said the purchase 
reflected Regent’s view that 


the UK’s financial services sec- 
tor had good growth prospects. 
Trio represented a geared play 
on the sector since its restruct- 
uring last year had improved 
Us potential, she added. 

Mr David Hagan, Trio’s 
chairman, said he was ptepspd 
that another institution had 
decided to take a material 
stake in toe company. Fidelity 
is thought to be Trio’s largest 
single shareholder with a stake 
of about 11 per cent, followed 
by Warburg Pincus with about 
10 per cent 

Ms Sutcliffe said toe 5.08m 
shares in Trio were acquired in 
the market towards toe end of 
last week, when the shares 
traded between 28p and 30p- 
This would put a price tag. erf 
some £L5m on the stake. Trio's 
share price closed at 34p yes- 
terday, up 2p from Friday. 


By Christopher Price 

Medical Insurance Exchange of 
California, a pr ofessional liabil- 
ity insurer, has’ become the lat- 
est organisation to take advan- 
tage erf the drive by Lloyd's of 
London to attract corporate 
investors. 

The US group will begin 
contributing its corporate 
capacity to the Lloyd’s market 
for 1995, and is expected to 
write .premium income of 
about £5m. 

It will allocate its capacity to 
specialist medical malpractices 


BELL COUBT Fund 
Management is to buy Waver- 
ley Unit Trust Management for 
300,000 new ordinary shares 
BRIDGEND GROUP is selling 
SA St Gery to High Street 
Holdings for BFWOm (£600.000) 
cash. SA St Gery owns a long 

leaseho ld Tntpr ocf in tho Waites 

St Gery, a property situated in 


syndicates. Stace Barr has 
been appointed as MIE's 
Lloyd's adviser. 

Lloyd’s currently has 25 cor- 
porate member groups, the 
first to be allowed since the 
insurance market changed its 
rules a year ago in a radical 
move to allow investors to 
take advantage of limited lia- 
bility. 

The new protected members 
have been backed by institu- 
tional *mH private money and 
have been able to contribute 
£L6bn in capacity for the 1994 
underwriting year. 


ASW Int 

P tot chte y Motor int 

Black (Peter) ■■ fin 

British Vita int 

Btnd — ...... Int 

Bomah Castrol Int 

Cakterbum - —— I n t 

Cantors - fin 

Computer People __Jnt 
CapyrnoraS .Int 

EdMxstfi tec Tr Int 

Expemet int 

Haynes Publish fln 

Haywood Wffiams kit 

JB tnr 

Portl a nd Int 

P tew ne c § im 

RPS§ int 

Suter .int 

WBson Bowden — — Int 


Asia Pacific side 
behind 17% JIB rise 


Dividends shown 
Increased capital 
dMctend for year. 


per share net except where otherwise stated. tOn 
stock. ‘Acgusted for a scrip issue. $ First quarterly 


NEWS IN BRIEF 


toe centre of Brussels. In addi- 
tion to toe disposal proceeds, 
Bridgend will receive UL5 per 
cent of the expected total 
rental of the building. 
BRITISH DATA Management 
has acquired Stelstor Systems 
for a maximum consideration, 
erf £6054)00. Stelstor, a supplier 
of shelving and storage 


systems, rwarin pre-tax profits 
of £311,000 on £2.4m turnover 
in year to May 31 1993. 
BURFORD HOLDINGS has 
sold (fflltngbam Business Park 

and an nffine b uilding in May- 
fair to Grosvenor (Mayfair) 
Estates for £l4Bm cash. 
CAPITAL & REGIONAL Prop- 
erties has acquired Humber- 


stone House, Leicester, for 
£L63m from Scottish Life. 
STANDARD CHARTERED, the 
UK-based international bank, 
has reached an agreement to 
sell personal banking 
operations in Canada - com- 
prising the deposits and loans 
of two branches - to Bank of 
Montreal. 


By Christopher Price 

A strong performance from its 
Asia P acifi c operations helped 
JIB Group, the insurance bro- 
ker in which Jardine Matheson 
has a majority stake, turn in a 
17 per cent increase in half- 
year pre-tax profits from 
£11.7m to £13.7tn. 

Turnover grew 7 per cent to 
£ 114.6m (£l07.4m). while earn- 
ings per share were unchanged 
at 6.4p, as was the dividend of 
2.5p. 

Turnover in the Asia-Pacific 
region rose 19 per cent to 
£19.7m as the company reaped 
the benefit of opening new 
offices in South Korea and 
India and reorganising its 
operations in the Philippines. 

Mr John Barton, chief execu- 
tive, said that JIB was looking 
to further expand its Far East- 
ern operations to benefit from 
the region's burgeoning econo- 
mies. “We will be building on 
our successes in our Asian 
Pacific insurance operations 


and overseas reinsurance busi- 
ness,” he said. 

He added that toe company 
had been surprised by the 
toughness of the UK insurance 
market. Turnover here grew by 
just 9 per cent in the first half 
to £46.1m (£42.2m), with mar- 
gins coming under pressure as 
brokers reacted to strong com- 
petitive pressures by reducing 
rates, particularly in the 
marine market. 

JIB’s US operations also per- 
formed in competitive condi- 
tions, with Mr Barton blaming 
difficulties in the Lloyd's mar- 
ket as part of the reason for an 
increase in business remaining 
in the US. He added that the 
business was undergoing some 
restructuring. 

London was also a difficult 
market for toe reinsurance 
business, with reduced demand 
dampening prices required for 
reinsurance cover. However. 
JIB was boosted by a good per- 
formance from its overseas 
reinsurance division. 


A-:, 

'I»fc 

SCA 


Interim Report 

January 1 -June 30, 1994 


SCA in brief, SEKM 

1994 

1993 

Net sales 

15,580 

16,751 

Operating profit 

1,394 

1,057 

Earnings after financial net 

Earnings after financial net. 

1,034 

550 

■ excl non-recurring items 

Earnings per share after tax 

818 

550 

and full dilution, SEK 

3,73 

2.15 

Equity/assets ratio, percent 

49 

47* 

Net debt 

10,636 

12,559 

Shareholders* equity incl minority interest 

21,072 

20,879* 

Debt/equity ratio, times 

0.50 

0.52* 

Number of employees 
* as per Dec.31, 1993 

24,070 

24,069* 

Forecast 1994: Earnings after financial net 
SEK 1,900 - 2,300 M excl non-recurring items. 


A complete report can be ordered from 

SCA Corporate Communications, telephone no. +46 8-788 51 00, 
fax no. +46 8-678 81 30, or from the address below. 

SVENSKA CELLULOSA AKT7EBOLAGET SCA 

Box 7827, S-103 97 STOCKHOLM, Sweden 



3 Z. 

1 HIGHLIGHTS 

I FROM THE INTERIM RESULTS TO 30 JUNE 1994 

INTERNATIONAL 
LEADER IN THE 
APPLICATION OF 
SCIENCE, TECHNOLOGY 

AND ENGINEERING 

Turnover £388m 

Profit before tax £24lT) 

Earnings per share 7.0p 

PRODUCING 

SPECIALISED POLYMER, 
FIBRE AND 

FABRIC COMPONENTS 

Dividend oer share 3.75D 

SERVING THE 
FURNISHING, 
TRANSPORTATION, 
APPAREL, PACKAGING 

AND ENGINEERING 
INDUSTRIES 


• Operating profits improve despite static markets 

• Acquisition programme continues 


• Polish plant on stream 


y 


BRITISH VITA PLC, MIDDLETON, MANCHESTER M24 2DB 


Telephone: 061-643 1 133. Fax: 061-653 5411. 

Copies of tea Interim Report can be obtained from the Company Secretary 








24 


FINANCIAL TIMES 


TUESDAY SEPTEMBER 6 1994 


★ 


COMPANY NEWS: UK 


ASW maintains interim 
despite fall to £700,000 

improvement, helped by the 


By Anctow Baxter 

ASW Holdings, the 
Cardiff-based steel products 
and construction systems 
group, is maintaining its 
interim dividend of 3p a share 
in spite of a sharp fall tn flrst- 
half pre-tax profits from £L5m 
to £700,000. 

The decision is based on the 
expectation that trading condi- 
tions will continue to improve 
following a much better second 
quarter in the company's main 
steel business. 

The company is also expect- 
ing the benefits from its invest- 
ment and cost-cutting pro- 
grammes to come through. 

Total turnover edged up 
from £230.5 m to £237m. but 
profits from continuing 
operations, excluding restruct- 
uring costs, fell from £5-2m to 
£3.4m. 

The steel side suffered a slide 
in profits from £7m to £4.1m. A 


By Andrew Bolger 

Suter, the industrial 
conglomerate chaired by Mr 
David Abell, said it was pro- 
ceeding wen with the integra- 
tion of Wilkes, the Sheffield 
engineering group it acquired 
full control of in May. 

Suter’s pre-tax profits were 
£l2m in the six months to July 
2, compared with £29.6m which 
Included a £19.1m disposal 
gain. The group said a better 
guide to underlying perfor- 
mance was profits before tax 
and exceptional, up 14 per 
cent from £I0.5m to £12m. 
Sales rose ll per cent to 
£ll0.1m. Savings of more than 
Elm have been achieved at 
Wilkes, and Mr Abell is seek- 
ing closer integration of Avon 
Transmissions with the 
group's existing Mitchell Cotts 
Remanufacturing business. 

The group intends to concen- 
trate on completing the inte- 
gration of Wilkes, continuing 
its capital expenditure pro- 
gramme and pursuing addi- 
tional opportunities to enhance 


loss of £100,000 in the first 
quarter reflected the continua- 
tion of the poor trading condi- 
tions experienced at the end of 
last year, but the second 
quarter brought a significant 
recovery in selling prices and 

mnrginfl- 

Prices continued firm and 
demand remained satisfactory, 
ASW said yesterday. 

An £llzn-£12m upgrade of the 
Cardiff bar and section mill 
has been carried out, which 
ASW said would achieve sub- 
stantial cost reductions when 
it came into frill operation next 
year. Meanwhile, as a result of 
this and other restructuring to 
be undertaken in the second 
half, there would be excep- 
tional restructuring costs esti- 
mated at £3 .5m this year, due 
mainly to redundancies. Some 
£800,000 of this was incurred in 
the first half. 

The construction systems 
business showed some 


core activities. Negotiations 
are continuing for the sale of 
substantial p ro pe rt y assets and 
certain non-core subsidiaries. 

Suter's refrigeration busi- 
ness increased operating prof- 
its from ga.2m to £2.7m. The 
UK and continental European 
markets had been depressed, 
but business bad picked up 
strongly in South Africa. 

Trading profits from the 
chemicals businesses fell from 
£4.2m to £3. 6m. Speciality 
chemicals businesses per- 
formed well, but fine chemicals 
suffered from pricing pressure. 

The group's automotive and 
engineering businesses per- 
formed well, raising operating 
profits from £2.3m to £3.6m. 
The exception was Flofonn, 
acquired from Wilkes, which 
had disappointing volumes in 
the first half but this has been 
addressed. Consumer products 
increased operating profits 
from £400,000 to £700,000. 

Mr Abell said: “If we can - as 
I believe - expect a period of 
steady economic growth with 
low Inflation in the UK, our 


restructuring carried out at the 
end of last year, reducing its 
first-half loss from £l.8m to 
£700,000. The company reiter- 
ated that the business would 
be profitable tn the second 

half 

The group’s net borrowings 
stood at £43. 4m on June SO, 
only slightly up from £42L&n a 
year earlier despite a rise in 
capital spending from £3.4m to 

E10-2KL 

Net profit rose from £700,000 
to £L.&n following the release 
of an earlier provision related 
to the tax treatment of the 
takeover Of Manchester Steel 
in 1985. A favourable agree- 
ment with the Inland Revenue 
was reached early this year. 

After payment of preference 
and ordinary dividends, the 
retained loss tor the period was 
reduced from £2m a year ear- 
lier to £LLm. Bask: earnings 
per share were L3p (0.0p). 


confidence in it as a healthy 
location for our main manufac- 
turing operations is Jus tified. " 

Stripping out gains from 
property, analysts expect full- 
year profits of about £22m, 
which puts the shares - down, 
lip yesterday at 198p - on a 
prospective multiple of nearly 
16. Earnings per share were 
6.6p, compared with &3p before 
exceptionals, an increase of 45 
per cent. The interim dividend 
rose to 35p (3.4p). 


Plasmec recovers 
to £352,000 

Pre-tax profits at Plasmec, the 
electronic and electrical equip- 
ment manufacturer, made a 
sharp recovery for the six 
months to June 30 to £3524)00 
against a loss of £237,000. 

Turnover was up from 
£5.96m to £7-23m, boosting 
operating profits to £642,000. 

The USM-quoted company 
doubled tiie interim dividend 
to 1.5p. Earnings per share 
were 4Bp (3.6p losses). 


Britannia 
Building 
Society 
64% rise 

By ABson Smith 

Britannia Bonding Society, 
the UK’s ninth largest, 
yesterday reported a 64 per 
cent increase in first half 
pre-tax profits, from £28.5m to 
2465m. 

Mortgage lenders across the 
sector have benefited from 
falls tn provisions for bad and 
doubtful debts; Britannia also 
attributed the rise to better 
management of interest 

margins an inwpa^ tn 

non-interest income. 

Net interest receivable for 
the six months to June 30 rose 
to £8&2m - some 16 per cent 
higher than in the first half of 
last year. Other income and 
charges, including those from 
insurance sales, rose by £24m 
to £275m (£24Jm). 

The society’s estate agency 
subsidiary is just below 
break-even point 

Provisions for bad and 
doubtful debts ton 22 per emit 
to £17m (£2L8m) - less than 
the fans experienced by same 
other societies. 

Mr Trevor Bayiey, finance 
director, said that Britannia’s 
provisions bad not had as for 
to fall as those of some 
societies, and that it had also 
taken a relatively cautions 
view of property prices. 

The society's adminis trative 
expenses rose to £5L6m 
(£49 5m), part of which was 
attributable to the cost of 
dosing 25 branches earlier 
this year. Mr Bayiey said that 
this closure programme, whidi 
leaves the society with 201 
branches, was now broadly 
complete. Group assets rose by 
about 2 per cent to total 
£13.4bn. 

Mr Bayiey said that 
historically the society's 
interest margins had been slim 
for the sector, but that this 
bad been improving over the 
last 18 months. 

One example of this had 
been the society’s very 
selective approach to the 
prices at which it was 
prepared to offer fixed-rate 
mortgages. At 7.75 per cent, 
its standard variable rate is 
just over 0.1 percentage point 
above the lowest headline 
variable rates offered by any 
of the 10 largest societies. 


Suter at £12m as Wilkes 
integration continues 


New issues machine back in gear 

Institutional mood towards flotations is changing. Simon Davies reports 


Funds raised (Eton) 

3.5 


A fter a summer of dis- 
content for the city's 
vast new issues 
machine, which ahwfwt ground 
to a halt in the face of institu- 
tional hostility, recovering 
share prices have cranked up 
the nwohiTiP once more. 

The Stock Exchange esti- 
mates that it has betwesx 40 
and 50 companies currently in 
its new Issues pipeline. A far- 
ther 35 have made initial 
approaches, which could be 
translated into flotations by 
the year-end. 

The net result is that 1994 
will overwhelmingly break 
both the 1986 record of £9bn of 
flotations for a year and the 
1968 record number of ISO Ini- 
tial public offers. 

This year, according to 
KPMG Peat Marwick’s figures, 
an estimated 147 flotations 
have sucked up £7.5bn of insti- 
tutional capital and added 
com pani es with an faiHsi mar- 
ket value of close to £13bn. 

These statistics might sug- 
gest a return to the euphoric 
reception of new issues during 
the bull market of the mid- 
1980s, but the reality could 
hardly be more different. 

Institutions all rtemnn g fTgte. 
an enormous wariness towards 
the flood of new scrip. Compa- 
nies such as Canadian Pizza, 
United Carriers and Notting- 
ham Group, which encoun- 
tered unexpected sales declines 
shortly after flotation, have 
made it more difficult to per- 
suade fund managers to sup- 
port less than quality issues. 

As Mr Neil Austin, of Peat 
Marwick Corporate Finance, 
says: “One of the advantages of 
the shake-out is that those 
opportunistic, or downright 
greedy, companies that 


New Issues 

Number a! cdfTpaoiea 



shouldn't float will not be able 
to. 1 think we have lost that 


ery in confidence were the & 
and Exco flotations. Both 
received strong institutional 
support tor share offers despite 
prrnartah» market conditions. 
Backers were rewarded with 
share price increases of 18 per 
cent and 19 per cent respec- 
tively. 

However, enthusiasm will be 
tempered by less successful flo- 
tations such as on-line busi- 
ness mfinrmatinn group MAID, 
whose shares fell 61 per cant 
below the HOp issue price, 
before recovering to a 36 per 
cent discount. 

Investors are likely to be 
faced with a mixture of both. 
Larger companies, such as 
Thom lighting mid ED & F 
Man, have experienced man- 
agements and long track 



records, and are expected to 


pa nips that have been touting 
themselves over too many 
months, which may encounter 
less enthusiasm. 

The list of impending floats 
will include names such as 
Ashbourne Homes, Bright Rea- 
sons, Century Inns, Compell 
Group, Datrontech, FUtronic 
Comtek, Optus, Seapexfect, 
Servisair and USM Texan. 

Brokers said they hoped that 
these would be evenly spread 
throughout the remainder of 
the year, but the reality will be 
the opposite. 

There Is a sense that there is 
only a limited window of 
opportunity. Companies and 
their advisers are therefore 
already jostling to get to 
the front of the line, to 
ensure that they ere not left 
exposed when institutional 


appetites are satiated. 

The dangers tor those that 
mica the boat ore great. Lon- 
don Capital's flotation was pul- 
led at the last minute, as major 
shareholder Citibank refused 
to sell out at the prices dic- 
tated by its advisers - close to 
a 15 per cent discount to 
assets. 

Analysts said there were 
nni< , wns over the LCH’s man- 
agement. which might have 
been ignored in a stronger 
market. However, having with- 
drawn once, tt would be likely 
to struggle to get a positive 
response a second time and a 
trade sale is now considered a 
more likely exit for Citibank. 

British Printing Company 
was another casualty, but it 
was beaten more on price than 
quality and is expected to 
relaunch its offer, after com- 
pleting accounts for the cur- 
rent year. 

In the past, marginal flota- 
tions could be propped up 
through support from the 
small retail investor, but this 
year the public have played 
only a limited role. 

The Capital Shopping Cen- 
tres public offer was only 14.4 
per cent subscribed, and even 
after an aggressive marketing 
campaig n, the public portion of 
the 3i offer was only Ll times 
subscribed. 

Institutional shareholders 
are therefore the key to suc- 
cess, and they are returning 
from summer holidays with 
money to spend from recent 
bids mid dividends and a more 
positive outlook for the mar- 
ket 

The race Is now on to see 
bow many new issues can get 
through before the mood 
changes once more. 


get positive responses at the 
fringe element for the right price. By contrast there 
moment” are a number of smaller com- 

Primary causes of the racov- 


Interest income cuts Scotia loss to £1.54m 


By David BlackweB 

Scotia Holdings, the drugs company whidi 
raised £37m from its flotation last October, 
reduced Its interim pre-tax loss from 
£259m to £L54m, helped by net interest 
income of £839,000, compared with interest 
paid of £282,000. 

However, the previous result was after 
net exceptional charges of £L5m. Profits 
before R&D, exceptionals and interest 
eased from £24ffm to £292m on sales 14 
per cent ahead at fiftiflm (£7.7&n). 

Scotia finances research into new drugs 


with the profits from sales of evening 
primrose caL Research focuses an lipids, 
important constituents of the membranes 
which surround cells. 

Mr David Horrobin, chief executive, said 
the company had five products in phase 3 
trials, yet its cash balances had Mien by 
only £4674)00 in the six months. Spending 
on research and development had risen by 
more than 40 pm 1 cent to £5-29m. 

The pharmaceutical division's and 
royalties fell from £3 .97m to £3.85m, 
reflecting price reductions in the UK, 
which accounts for 60 per cent of the total 


Sales of distribution rights and other oper- 
ating income were down 34 per cent at 
£L5lm (£23m). 

The nutritional division increased sales 
and royalties by 31 per cent to £4.97m 
(£3.79m) following a return to the US mar- 
ket and a chang e of UK distributor. 

Mr Horrobin said the flotation had 
allowed the group to accelerate patient 
recruitment for trials. Drugs in the pipe- 
line frirfndfl treatments for diabetic com- 
plications, pancreatic cancer and the side 
effects of radiotherapy. 

Lasses per share were 24>p (6p). 



FINANCIAL TIM l- S 

Conference v 


RETAILING 
TOWARDS 2000 


COMBINING VISION AND EFFICIENCY 

21 & 22 September 1994 - London 

Many challenges face the retail industry worldwide on the eve of the twenty-first century. Retailers 
must take advantage of new markets and embrace new technologies to maintain competitive 
advantage, while tackling the fundamental issue of business performance improvement. Winning 
retail formats will be those that successfully combine vision with efficiency. 

ISSUES INCLUDE: 

• New Retail Formats and New Routes to the Consumer 

• Private Labels and Brands 

• Customer of the Future 

• Impact of Multimedia on Retailing 

SPEAKERS INCLUDE: 

• Mr Teh Ban Lian 
Group Managing Director 
Emporium Holdings Singapore 

• Mr Richard Mercier 
Vice President - Senior Analyst 
Moody’s Investors Service 


Mr Mark R Lilly 
SVP & GM - Europe 
The Disney Store Limited 


Mr Michael F Ruddell 

Director 

The Boots Company PLC 
Mr James N W May 
Director-General 
British Retail Consortium 
Mr George H Beeton 
Chief Executive Officer 


Edgars Stores Limited 

For information about marketing opportunities please contact Lynette Northey on 071-814 9770. 

FINANCIAL TIMES CONFERENCE ICoopers 

in association with l&Lybrand 


RETAILING TOWARDS 2000 

Ploaw lick relevant boxes. 

□ Conference information only. 

□ Cheque enclosed for £775.50. made payable to FT Conferences. 

□ Please charge my Mastercard/Visa with £77530. 

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Please return in: Financial Times Conference, 
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Tel: 081 673 9000 Fax: 081 673 1335. 

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I <J0 by Md HJ be uacd » lop fom Wonoctf of FT prodKtt asd ncil 


Tel.. 


.Pax . 


Interest 
cut bolsters 
Expamet 

A 39 per cent cut in interest 
charges to £830,000 helped 
Expamet International to raise 
pre-tax profits by 30 per cent 
from a restated £2m to £2j6m in 
the first half of 1994. Turnover 
on continuing businesses rose 
from £624fcn to £6<L3m. 

The company’s security and 
building sectors both showed 
improvements - at Elm (£0 -9m) 
and £L8tn (£L7m) respec ti vely 
- while the industrial side, 
although £0.5m lower than last 
time at £0.6m, showed a recov- 
ery an last year’s difficult sec- 
ond hall 

The lower interest charge 
reflected both reduced borrow- 
ings an d a fal l in French inter- 
est rates. At June 30, borrow- 
ings including leasing, had 
reduced by 20 per cent or £4n 
compared to mid-1993. 

Earnings per share were 
2.7lp (2J59p) and the interim 
dividend has been lifted from 
lU5p to L35p. 

RPS shares jump 
after 35% increase 

Shares in BPS jumped by 10 
per cent from 60p to 66p after 
the USM-quoted environmental 
consultancy reported a 35 per 
cent increase in first-half pre- 
tax profits and sounded an 
optimistic note for the future. 

Pre-tax profits increased 
from £388.000 to £525.000 for 
the first half of 1994, on turn- 
over up by 22 per cent at 
£-L27m. Margins also increased 
from 11 per cent to 12 per cent. 

Mr Roger Looker, chairman, 
said the forward order book 
level was more encouraging 
than at any time since the 
recession first affected the 
group in the second quarter of 
1990. 

Earning s per share climbed 
from 2.17P to 2 j89p and the div- 
idend has been stepped up to 
L3p (Up). 

Cantors improves 
towards end of year 

Cantors, the retail furnishing 
group, reported pre-tax profits 
of ££54n for the year to April 
28, a 32 per cent increase on 
the comparable £L67m. Turn- 
over rose 3 per cent from 
£60.4m to £62 ul 

Mr Harold Cantor, chairman, 
said the January sale was suc- 
cessful and there was an 

im p rove men t in trading in the 

last quarter of the year. 


NEWS DIGEST 


This continued into the first 
month of the present year but 
the tax rises and the hot 
weather in Jane and July 
resulted in very poor trading. 

Earning s ner share came out 
at 10.33p (6.66p) and the divi- 
dend is being maintained at 4p 
with an unchanged ffnal of 3p. 

Panther wins 
Etonbrook Props 

Mr Andrew Ferioff has gamed 
control of Etonbrook Proper- 
ties. 

The offer by his Panther 
Securities, an investment and 
property dealer, has been 
accepted by holders of 397,351 
shares representing 8.12 per 
cent of the voting rights taking 
the company’s share of the vot- 
ing rights to 50.45 per cent 

The offer is now uncondi- 
tional. 

Oliver reduces first 
half loss to £1.65m 

Oliver Group, the shoe retailer 
now trading from 335 branches, 
cut its losses from E2.24m to 
gi .flSm for the six months to 
July 2. 

The group made a £2444)00 
full-year profit; however “foot- 
wear, like most other forms of 
retailing, is heavily dependent 
on the peak Christmas trading 
period for a profitable outcome 
for the year," said Mr Denis 
Cassidy, chairman. 

Turnover was down at 

(£33 gm) but this was 

achieved from 43 fewer 
branches thaw in Hw> first tiaw 
of 1993. Losses per share were 
6fi5p (8.86p). 

Computer People 
doubles to £733,000 

Computer People, the com- 
puter recruitment service and 
consultancy, reported pre-tax 
profits doubled from £364,000 to 
£733,000 for the half year to 
end-Juns. 

The shares rose lOp to ISSp. 

The outcome was struck 
after an exceptional charge of 
£530,000 relating to manage- 
ment reorganisation, and came 
from revenue up from £3&5m 
to £38m 

W arning s per share emerged 
at 3.42p (L45p) and the com- 
pany Is res to r i ng the interim 
dividend wttb a pay-out of ip. 

Edinburgh Income 
net asset value 46J5p 

Edinburgh Income Trust, the 
split capital investment trust 
formerly known as EFM 
Income Trust, reported a net 


asset value per ordinary share 
erf 4&5p on July 31 1994, against 
5Q.7p three mouths earlier and 
50^p on July 31 1993. 

Net asset value of the zero 
dividend preference shares was 
50.3p against 4&8p at the begin- 
ning of the quarter. 

Net revenue for the first 
quarter was £1294)00 against 
£1724)00 last time, for earnings 
per share of 0J9p (Lip). 

The first interim dividend is 
unchan ged at lp. 

John Mansfield 
In black midway 

Better conditions tn all its mar- 
kets helped John Mansfield 
Group, the timber processing 
and manufacturing concern 
which came to the market in 
June, to turn in a pre-tax profit 
of £1024)00 for the first half <rf 
1994. This compared with a 
£364)00 kiss last time. 

Turnover grew 8 per emit to 
£3.74m and earnings per share 
were 0.37p (0.12p losses). 

The company said «»h 
inflow following the flotation 
bad significantly strengthened 
the balance sheet. Reduced 
bank borrowings had only a 
small effect on lower interest 
payments of £954M0 (£105,000) 
for the period and the main 
benefit would be seen in the 
second hah/ 


Acquisition helps 
Calderburn advance 

CaMerbum, the Preston-based 
office furniture group, reported 
pre-tax profits up from £L4lm 
to £2.84m for the six months to 
June 30. 

The outcome was struck on 
turnover up from £l2J)m to 
£28m, and Included s first con- 
tribution from Specialised 
Banking Furniture, acquired in 

December last year. 

Earnings per share emerged 
at 7p (3.6p), or 6.lp <3^p) funy- 
diluted, and the interim divi- 
dend is raised to 23p (&8p). 


Advanced Media 
share placing 


Advanced Media Group, the 
interactive multimedia com- 
pany. has placed 400,000 ordi- 
nary shares, with warrants 
attached on a l-for-5 basis, at 
llOpeach. 


at £L3m, will fund 
stage of AMG’s exps 
the mainstream of i 
development and p^i 
Dealings on the 4 
formerly the 535<2 


Energy Capital 
Investment Company 

Energy Capital Investment 
Company, whidi came to the 
market via an institutional pla- 
cing in February, reported a 
net asset value per share of 
4839p at June 80. 

Gross revenue for the period 
from incorporation on Novem- 
ber 1 to endJune amounted to 
£68,255. The interim pre-tax 
loss of £84,927 was struck 
before revenues began to flow 
from investments negotiated in 
the early months of trading. 
Losses per share emerged at 

0.47p. 

EC1C Is an investment 
vehicle specialising in project 
finance for the oil and gas 
industry in the US. 

Copymore ahead 
46% to £l.Im 

Copymore, the USM-traded 
photocopying machine sup- 
plier, increased pre-tax profits 
from £7584)00 to for the 

six months to June 30, a rise of 
46 per cent 

Turnover rose 37 per cent 
from £17 .2m to £23£m. 

The company sold the distri- 
bution division of its Birming- 
ham-based subsidiary. Mekom 
Computer Products, for £L35m 
In August 

Earnings per share were 6£p 
(4Jjp) and an interim dividend 
of 2.6p gtsp) is declared. The 
share price rose lOp to 115p. 

Mithras Investment 
above benchmark 

Net asset value per share at 
Mithras Investment Trust 
improved from 54 at Febru- 
ary 21, when it came to the 
“arket, to 61.5p at June 30. 

This marked a las per cent 
“crease compared with a 1L7 
per cent fell in the benchmark 
FT-SE-A All-Share Index. Net 
revenue for the period was 
£65,000 for earnings per share 
of 0.16p. 


Bletchley Motor 

advances to £I.13m 

Bletchley Motor Group contin- 
ued to improve with a 44 per 
cent increase In pre-tax profit 
for the six months ended June 
30, up from £7854)00 to £1.13m. 

Turnover was ahead at 
£52.?m (£39£m). Contract hire 
and d ealership showed good 
growth, although the self drive 
rental side was 
the company said. 

Earning*; per share came out 
1%) Q0J9p) and the dividend 
is raised from 4.75p to 5.375P- 






FINANCIAL times 


TUESDAY SEPTEMBER 6 1994 


COMPANY NEWS: UK 


Housebuilder cautions on August sales E Repair and DIY market still in doldrums 

Wilson Bowden 46% ahead to £16.5m 


By And rew Taylor. 

Construction Correspondent 

Pre-tax profits of Wilson 
Bowden jumped 46 per cent to 
£ie.5m during the first six 
mont hs of this year - after dis- 
connting a “one-off £55m pen- 
sion ftmd surplus" in the first 
half <rf 1993. 

However. Mr David Wilson, 
chairman and chief executive, 
struck a cautious note follow- 
ing reports last week that new 
house sales had recovered 
sharply during August from 
disappointing levels in June 
and July. 

He said: “Our sales are 
slightly higher than in 
August last year, hut no- 
where near the margin 
suggested by other builders.” 
Persimmon, the country’s 
eighth largest housebuilder, 
had said that its August sales 
were a quarter higher than last 

year. 


Mr Wilson said his company 
traditionally did better in 
September and October, but 
there were signs that the 
market was beginning to 
improve. 

Its sales in southern Rn gfawii 
last week were double those of 
the corresponding week last 
year, although sales in the 
Midlands were only slightly 
higher. 

The company is increasing 
its Interim dividend by 7.5 per 
cent to 2L85p after earnings 
per share rose by a fifth to 
ll-8p. excluding last year's 
pension fond surplus and 
reflecting last November's 
£57m rights issue. 

Housebuilding profits rose 
by 56 per cent .to £13-6m 
(£8.7mX Tbe number of houses 
sold increased by 17 to 965, 
while operating marg ins 
increased from 13.4 per 
cent to 15.5 per cent, which 
Mr Wilson claimed was the 


best in the sector. 

Margins were boosted by a 
15J3 pa* cent rise in the aver- 
age price from £78,900 to 
£914)00. Of this about 3 per 
cent represented a genuine 
price rise and removal of dis- 
counts; the remainder reflected 
a change in product to more 
expensive, higher-margin prop- 
erties. 

Increased volumes for the 
same fixed overheads also 
helped enhance margins. 
Mr Wilson said the company 
had i wed up most of the more 
expensive land bought in 
the late 1980s and early 
1990s. 

He remained concerned 
about government environ- 
mental policies stifling the 
supply of land for house- 
building, although the big 
increases in prices paid 
for land had slowed 
since the beginning of the 


• COMMENT 

It is difficult to find areas 
to improve when you are 
already top of the class. Less 
well managed competitors, 
which have more to gain 
from a housing recovery, 
receive buy recommendations 
for their shares while most 
of Wilson Bowden’s virtues 
are already in its price. One 
area of gain may he commer- 
cial property where profits, in 
spite of a slip to £3.4m (£ta) at 
the half year, are likely to be 
comfortably above last year’s 
£6m. The company has 
reported an upsurge m demand 
for industrial units Tb*» bal- 
ance sheet remains strong in 
Spite of recent land purchases. 
Pre-tax profits of £37m this 
year and £47m next place the 
shares on prospective multi- 
ples of approaching 16 and 
almost 18 respectively - high 
enough at this stage of the 
recovery. 



David Wilson: concerned about 
supplies of building lan d 


US purchases behind Heywood advance 


US acquisitions boosted the 
first -half results of Heywood 
W ilHams, the h nildfng materi- 
als and automotive compo- 
nents group, which more than 
doubled the pre-tax profits of 
its continuing businesses 
to £16.1m, writes Andrew 
Taylor. 

Last year’s interim profit of 
£22.74m was not comparable 
as it included a £15m gain on 
the £95m sale of the UK glam: 
division to Pflkmgton. 

Proceeds from the sale were 
used to buy two US companies: 
LaSalle-Deitch, which supplies 
components and furnishings 
for factory built homes, and 
Bristol Corporation, the 
plumbing products concern. 
The latter also sells heavily to 
suppliers and occupiers of fac- 
tory built homes. 

The acqnisitions, which 
joined tiie group after the first 
half of hut year, add e d £7 An 
to operating profits which rose 



Ralph Hincbcliffe: Finales 
price was low 

from £7.6m to £16. lm. Profits 
from existing US operations 
increased by £300,000 and the 
US total readied M-On, com- 
pared with £lAn. 

UK building materials busi- 


nesses, however, continued to 
suffer from the failure of the 
repair, maintenance and 
do-it-yourself markets to 
recover. 

Profit margins on plastic 
windows and doors have been 
squeezed by Ug rises in poly- 
vinyl chloride raw material 
prices. Overall UK profit, 
inchi ding AntoWindscreens, 
fell by 6.8 per cent from 
£6J21m to £5-81m. 

Continental European gins* 
profits rose sharply from 
£77,000 to £265,000 reflecting 
an i m pr ovem ent in construc- 
tion ma r ket s. It is flHrngw the 
group farfpndg tn s»n this busi- 
ness. 

hi the UK it has accepted an 
offer for Final ex, “reflecting 
the asset value” of the a hmrin - 
ftnn extrusion business whi c h 
has been losing market share 
to plastics in the replacement 
window and door market. Mr 
Ralph Hinchliffe, chairman, 


said the mice was low and not 
material by comparison with 
Haywood’s remaining bnsi- 


rnrniwp pgr share of con- 
tinuing businesses increased 
from 5.5p to 9.7p, including 
the effects of last December’s 
£52.4m rights issue. 

Hie company, therefore, is 
proposing to increase the 
interim dividend by II per 
cent to 5p. 


Heywood is the latest building 
materials producer to com- 
plain of slow progress in UK 
repair «iH Maintenance mar- 
kets. These fare better when 


the housing market is per- 
forming well. General house 
sales, however, remain slug- 
gish compared with new house 
sales. Meanwhile, PVC prices 
seem set to rise further. Hey- 
wood shareholders should be 
grateful, therefore, for some 
shrewd eanungsenliaiiting US 
acquisitions. These shonld 
help increase group profits to 
£36m this year and £42m nwt 
This ptoces the shares on for 
ward multiples of 16 this year 
and more than 13 for 1995. It 
Is difficult, however, to see 
how the group will improve 
this rating until there is a 
more p o siti ve outlook for UK 
repair markets. 


Redundancy 
for head 
of Lloyd’s 
agency 

By Richard Lapper 

Mr Terry Hayday is parting 
company with Sturge Holdings 
after three years as chief exec- 
utive of the Lloyd’s agency’s 
insurance operations. 

Mr Hayday*s departure fol- 
lows the appo i ntment of Lord 
David Poole as group chief 
executive early last month, 
and the decision of Mr David 
Coleridge, the chairman and 
former chairman of the 
Lloyd’s market, to retire next 
February. 

“Both the company and Mr 
Hayday have agreed that it Is 
in their mutual best interests 
If Mr Hayday left the group,” 
the company said. 

“He has accordingly 
accepted that he is made 
redundant effective from 16 
September 1904, on which date 
he will resign all his director- 
ships with the group.” 

Mr Hayday originally 
became a director at Sturge 
when his own underwriting 
agency was taken over by the 
larger group in 1990. 

His tenure in office has coin- 
cided with a difficult period 
for Sturge, with the capacity 
managed by its underwriting 
agency falling from over £ibn 
to some £660m after losses at a 
number of syndicates. 

Sturge, under Mr Coleridge’s 
direction, grew rapidly in the 
late 1980s. But it closed eight 
of its 22 syndicates early last 
year, including two - 206 and 
210 - which had generally 
been regarded as “flagships” 
in the market. The closnres 
and dismissal of 40 staff were 
part of a rationalisation 
geared to improve efficiency. 


Speedo swimwear 
helps Pentland 
jump to £ 16 . 8 m 


By Peggy Hottlnger 

Pentland Group yesterday 
claimed a share in recent Com- 
monwealth Game victories as 
the branded consumer goods 
company announced a sharp 
jump in interim pre-tax profits 
from £6.7m to £16.&n. 

The 96 medal winners in the 
32 swimming events were all 
wearing Speedo swimsuits, 
according to Mr Frank Fan-ant. 
finance director. “It is the first 
time that has happened and 
shows our strength in the per- 
formance-related swimwear 
market.” 

Strong growth in the Speedo 
division, which manufactures 
and distributes swimwear, was 
partly behind the sharp rise for 
the six months to June 30 with- 
acquisitions, on which Pen- 
tland spent £20m in the first 
half, also helping. 

The advance was further 
fuelled by the absence of £9.5m 
in losses and charges arising 
from the closure of the US 
trade finance business in 1993. 

At the operating level, prof- 
its rose from £5m to £10_2m. 
Sales rose by 42 per cent to 
£280 An (£1 98.4m). or by 43 per 
cent on a c ontinuing basis. 

Pentland was disappointed 
by the performance of its US 
footwear business, which 
incurred losses of £5m for the 
whole of last year. Mr Farrant 
said the group was behind its 
target to halve losses for 1994, 
but was confident the division 
could break even next year. 

The consumer goods divirion 
suffered from higher prices for 
commodities such as copper, 
used in the manufacture of 


extension cords. This is the 
largest part of the business at 
Woods Wire, the cables maker 
and distributor acquired last 
year. 

Woods, which accounts for 
about half of total turnover, 
had been unable to pass on 
price increases to retailers. Mr 
Farrant said. However, 
increases of between 5 and 10 
per cent had recently been 
introduced and there would be 
further rises in the second 
half. 

Pentland finished the first 
half with net cash of £145m. 
against £185 at the December 
year-end. The drop in cash and 
lower interest rates accounted 
for a fall in net interest income 
from £9.5m to £4 ,2m. 

Mr Farrant said the group’s 
strategy of making medium- 
sized acquisitions had been 
vindicated by the results. “We 
have come a long way and peo- 
ple have not recognised that 
fact because we have not done 
one major acquisition." 

Although Pentland would 
continue to be acquisitive, the 
group now intended to focus 
more on managing brands, Mr 
Farrant said. 

The dividend was increased 
by 78 per cent to 125p (l.l6p) 
from earnings up from 0.41p to 
2.71p, although the rise was a 
more restrained 19 per cent 
when non-recurring Items were 
excluded. 

Analysts upgraded forecasts 
for full-year profits before 
exceptional from about £3lm 
to £35m, compared with £288m 
before exceptional . The shares 
were marked up 4p to close at 
108p. 



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If 

rainforests are 
being destroyed at 
the rate of thousands of 
trees a minute, how can planting 
just a handful of seedling? make a difference? 

A WWF - World Wide Fund For Nature tree 
nursery addresses some of the problems feeing people 
that can force them to chop down trees. 

Where hunger or poverty is the underlying cause 
of deforestation, we can provide fruit trees. 

The villagers of Mugunga, Zaire, for example, eat 
papaya and mangoes from WWF trees. And rather than 
having to sell timber to buy other food, they can now 
sell the surplus fruit their nursery produces. 

Where trees arc chopped down for firewood, 
WWF and the local people can protect them by planting 
fest-growing varieties to form a renewable fuel source. 

This is particularly valuable in the Impenetrable 
Forest, Uganda, where indigenous hardwoods take 
two hundred years to mature. The Markhamia lolea 
trees planted by WWF and local villages can be 
harvested within five or six years of planting. 

Where trees arc chopped down to be used for 
construction, as in Panama and Pakistan, wc supply 
other species that arc fest-growing and easily replaced. 

These tree nurseries are just part of the work we 
do with the people of the tropical forests. 

WWF sponsors students from developing countries 
on an agroforestry course at UPAZ University in 
Costa Rica, where WWF provides technical advice on 
growing vegetable and grain crops. 


Unless 
help is given, 
soil is exhausted 
very quickly by “slash 
and bum” farming methods. 
New tracts of tropical forest would then have 
to be cleared every two or three years. 

This unnecessary destruction can be prevented by 
combining modern techniques with traditional 
practices so that the same plot of land can be used to 
produce crops over and over again. 

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demonstrates how these techniques can be used to 
grow a family's food on a small four hectare plot. 
(Instead of clearing the usual ten hectares of forest.) 

WWF fieldworkers arc now involved in over 100 
tropical forest projects in 45 countries around the world. 

The idea behind all of this work is that the use of 
natural resources should be sustainable. 

WWF is calling for the rate of deforestation in the 
tropics to be halved by 1995, and for there to be no 
net deforestation by rhe end of the century. 

Write to the Membership Officer at the address 
below to find out how you can help us ensure that 
this generation does not continue to steal nature’s 
capital from the next. It could be with a donation, 
or, appropriately enough, a legacy. 


& 


WWF World Wide Fund For Nature 

(formerly World Wildlife Fund} 

International Secretariat, 1196 Gland, Switzerland. 


FOR THE SAKE OF THE CHILDREN 

WE GAVE THEM A NURSERY. 






26 


FINANCIAL TIMES TUESDAY SEPTEMBER 6 .994 


COMMODITIES AND AGRICULTURE 


China reveals its 
gold production 
at 90m tonnes 


By Kenneth Gooding, 

Mining Correspondent 

China yesterday puzzled 
western analysts by revealing 
tts annual gold production. It 
was the first tune since 1949 
this statistic had been given by 
China which previously 
insisted that gold output was a 
state secret 

Mr Song Ruixtang. Minister 
of Geology and Mineral 
Resources, told Reuter that 
last year China produced 90 
tonnes of gold. 

This was well below the 127 
tonnes estimated by the Gold 
Field Minerals Services 
research group in its annual 
review of the market regarded 
as one of the most authorita- 
tive available. Mr Kevin Crisp 
at GFMS said his organisa- 
tion's estimate included unoffi- 
cial gold production while the 
minister obviously was refer- 
ring only to official output 

Gold producers were 


required to sell all their gold to 
the People's Bank of China, the 
central bank. As the bank did 
not vary its price in line with 
western bullion markets, there 
was a big incentive for miners 
to dispose of their gold else- 
where when prices rose. “I 
think a production figure 
between 120 and 130 tonnes is 
more realistic,” said Mr Crisp. 

This still left the question of 
wby China had suddenly bro- 
ken with tradition. Usually it 
simply reveals a percentage 
change. Official newspapers 
previously reported that Chi- 
na's 1993 production rose by 7J5 
per cent from the 1992 level. 

One analyst suggested that it 
possibly was significant the 
revelation came from the Min- 
istry of Geology and not the 
State Gold Bureau., “The Minis- 
try is keen to attract foreigners 
into China's gold business and 
knows that foreign companies 
want an indication of the offi- 
cial figure,** the analyst said. 


Bumper US crop but 
farm incomes to fall 


By Laurie Morse 
in Chicago 

Ideal harvesting weather 
across most of the mid-West is 
allowing US grain farmers to 
reap near-record maize and 
soyabean harvests. 

The bountiful crop will 
recharge silos and grain bins 
drawn low after last summer's 
drought and flood-ravaged sea- 
son, but will do little to 
improve farm profits. Produc- 
ers have watched market 
prices for feed grains sag 
steadily through the summer 
as crop prospects brightened. 

Now, with only scattered 
chances for damage from frost 
or disease remaining, analysts 
say official estimates of a 
9.21bn-bushel maize harvest 
and a 2L28bn-bushel soyabean 
crop are almost certainly on 
target 

The output gains come not 
Only because there were more 
acres planted this year - for 
the first time in recent history 
the US Department of Agricul- 
ture did not require farmers to 
set aside implanted ground - 
but because yields per acre are 
up in many states. 

Although domestic food pro- 
cessors and livestock feeders 
will consume more grain than 
ever this year, export markets 
for maize and soyabeans are on 
decline. 

A dip in farm income this 
year could slow the current 
mini-boom in agricultural 
machinery sales next year and 
limit the recovery in farm real 
estate prices. The big crop will 
also require Washington farm- 
policy makers to reconsider 
acreage set-aside rules. 

Analysts say the big crop 
will also keep pressure on 
USDA officials to beef up 
export subsidy programs to 
move grain overseas. USDA 
economists, who are revising 


COMMODITIES PRICES 


their farm-income data for this 
year and last, are expected to 
report this week that farmers’ 
net cash income In 1994 will be 
substantially lower than last 
year. 

The USDA recently esti- 
mated that net cash income to 
farmers was a record 
US$62^bn in 1993. when higher 
prices and government pay- 
ments more than offset income 
lost due to crop disasters. How- 
ever, that figure will be revised 
downward to $58.4bn, accord- 
ing to Mr. Bob McElroy, senior 
financial analyst with the 
USDA. 

He says 1994 farmers net 
cadi income will be below that 
record, in the range of $53 to 
$57bn. The dip in net cash 
Income this year is the result 
of several factors. 

Expenses, inrimting - interest 
rates, are higher this year, and 
government payments to form- 
ers are expected to drop to 
about $8bn, far below last 
year’s (I3.4bn. Throughout 
much of the midwest, livestock 
prices are an important factor 
in form profits. 

“In our seven-state area, live- 
stock accounts for about 60 per 
cent of farm income,” says Mr. 
Mark Drabenstott, senior econ- 
omist with the Federal Reserve 
Bank of Kansas City. 

"We think form incomes will 
be down this year largely 
because of sour cattle prices in 
the spring in early summer”. 

Cattle feeders had a bad first 
half in part because high feed 
grains prices prompted many 
livestock producers to slaugh- 
ter herds, creating a glut of red 
meat. 

Now. with the feed situation 
reversed, livestock producers 
are contemplating herd expan- 
sion, a factor that may keep a 
stream of Inexpensive beef 
flowing to supermarkets over 
the next two years. 


No early 
restart at 
Panguna 
planned 

By NMdTaft 
In Sydney 

CRA. the Australian mining 
company In which Britain's 
RTZ holds a 49 per cent stake, 
yesterday said it would need 
to see permanent stability on 
the strife-torn Pacific island of 
Bougainville before it would 
consider re-opening the con- 
troversial Panguna copper 
mine there. 

"Until we’ve got political 

stability on the island and 

also a decision by the locals to 
support the reopening of the 
mine we won’t be going bade,” 
the company said. 

However. CBA's caution did 
not prevent a surge in the 
shares of Bougainville Capper 
which , though controlled by 
CRA with a 53.6 per cent 
stake, is also quoted sepa- 
rately on the Anstralian stock 
exchange. When trading 
opened, they hit A&1.25, before 
dropping back for a gain erf 12 
cents at Afl.18. 

Speculation about the re- 
opening of the none follows a 
ceasefire agreement reached 
over the weekend between the 
Papau New Guinea govern- 
ment, which controls Bougain- 
ville, and the Bougainville 
Revolutionary Army, which 
represents the demand of 
locals who want to secede 
from PNG. The PNG govern- 
ment and the BRA have been 
fighting a six-year guerrilla 
war on the island, and hun- 
dreds of people are estimated 
to have been killed. 

The urine, operated by CRA, 
was a catalyst for the outbreak 
of the hostilities back in the 
late- 1980s. At one stage. Pan- 
guna provided about 30 per 
cent of PNG's export revenues 
and accounted for 10 per cent 
of the nation’s gross domestic 
product. However, locals 
claimed that they had been 
inadequately compensated for 
allowing the mine to be built, 
and that income was flowing 
out of Bougainville, into the 
coffers of CRA and the PNG 
government. The mine was 
mothballed in 1989. 


MARKET REPORT 

LEAD prices rose to a fresh 
two-year peak of US$622 a 
tonne on the London Metal 
Exchange following specula- 
tive buying and short covering 
ahead of stock figures today 
expected by some traders to 
show another foil. This should 
spark more gains towards $850. 
ALUMINIUM vacillated, driven 
down by the end of the Ihree- 
week strike at Australia's 
Tomago smelter, which cost 
output of about 80,000 tonnes, 
but given support by news that 
the Volta River Authority in 
Ghana had told Kaiser to halt 
output at its 200,000-tonnes-a- 
year Valeo smelter. OIL prices 
slipped back as more evidence 
emerged that the strike in the 
Nigerian industry, which 
began on July 4, was coming to 
an end. 

Compiled from Renters 


De Beers digs deeper into its resources 

Kenneth Gooding on the new lease of life for the Jwaneng and Finsch diamond mines 


The Jwaneng mine, on the 
fringes of the Kalahari desert 
in Botswana, is known as "a 
gem in the world of gems" 
because it almost certainly is 
the richest diamond mtnp in 
the world - at least in terms of 
the value of the gem stones It 
yields. Jwaneng’s position is 
being reinforced by a USJ160m 
expansion programme at pres- 
ent being completed three 
m onth s ahead of schedule and 
under budget 

Meanwhile, 160km west of 
Kimberley in the northern 
Cape Province of South Africa, 
another Tmnt» x the 

Finsch, where operations 
started in 1964, has been given 
a new lease of life. 

Having dug an open pit 423 
meters deep, miners have now 
gone underground. Mr stmnn 
Webb, the general manager, 
says that the underground 
development has given It 
another 35 to 40 years of 
life. 

All this goes to show that De 
Beers, the South African group 
that dominates world trade in 
rough (uncut) diamonds, stiU 
has complete faith, in Its ability 
to maintain stability in the dia- 
mond market despite 
short-term difficulties such as 
those the company is experien- 
cing with Russia. It also 

remains in ten t o n maintaining 

its diamond output even 
thoug h its 100-year-Old mines 
at Kimberley are now running 
down. 

The South African group 
believes that its control of at 
least 50 per cent of world dia- 


mond production gives it a 
powerful base from which to 
negotiate with the other 
producers who have marketing 
contracts with De Beers' 
Central Selling Organisation, 

In Botswana De Beers con- 
trols half of Debswana, the 
company that owns the Jwa- 
neng mine with the govern- 
ment owning the rest. The 
value of Jwaneng to Botswana 
cannot be overstated. 

It, and the country’s two 
other (smaller) diamond 
between them account for 50 
per cen t of the government's 
revenue and 40 per cent of the 
country’s gross domestic prod- 
uct. No wonder Jwaneng’s 
company slogan is Re phtas 
imisa Botswana, which trans- 
lates as We make Botswana 
sparkle. 

Production started at Jwa- 
neng in 1982. Now a so-called 
fourth stream is being com- 
pleted which is adding one- 
third to processing capacity. In 
turn, this is mean a 21 per cent 
rise in the number of carats 
produced. Last year the mine 
treated 5.8m tonnes of ore 
which yielded &546m carats of 
diamonds, well below the 1992 
output when the 5.77m tonnes 
treated gave up more than 9m 
carats. 

Jwaneng’s open pit has 
reached a depth erf 190 meters. 
Already it is 2kms long and 
lkm wide. Mr Loz Shaw, chief 
geologist, says drilling down to 
600 meters shows there are stOl 
plenty of diamonds at that 
depth and so the pit will go 
down at least that for. 



Underground development at the Finsch mine in Cape Province 


Mr Derrick Moore, the gen- 
eral manager, says this indi- 
cates mining in the open pit 
will last another 35 years - 
“and than we might go under- 
ground. 

If experience at De Beers’ 
wholly-owned Finsch mtnp in 
South Africa is anything to go 
by, planning th*» underground 
development at Jwaneng might 
already have started. 

Planning for the under- 
ground mine at Finsch Started 
in the 1970s and the first work 
began in 1979. Yet the bottom 
of the Finsch open pit - 423 
meters - was not reached until 
1990. 

Unfortunately, things did not 


go completely as expected 
when underground raining 
started, to some extent because 
the development was designed 
by a management whose exper- 
tise was mainly in open pit 
mining 

However, Mr Mark Button, 
milring superintendent, says: 
“Finsch has come of age as an 
underground mine after two 
years. Our costs compare with 
the best in the group.” 

Among the innovations that 
have helped Finsch achieve its 
objectives are some remotely- 
controlled LHD (load-haul- 
dump) trucks which are simi- 
lar to radio-controlled toy 
vehicles or boats. Using VHF 


radio signals, a driver can 
stand back and send a truck on 
its own to dig out material 
from areas between the old pit 
wall and the underground 
development that would not 
otherwise be mined because of 
the dangers involved. When, as 
occasionally happens, rock 
crashes on to the LHD trucks it 
is relatively simply to haul the 
vehicles out virtually unda- 
maged. 

Mr Webb says the objective 
is to mine down to a depth of 
830 meters at which point 
there are not enough diamonds 
left in the ground to make 
recovery viable. 

F inarh - named after the 
discovers, Messrs Fin- 
cham and Schwabel. 
who stumbled across the kim- 
berlite pipe containing the dia- 
monds when actually they 
were looking for asbestos - is 
one of the victims of the pres- 
ent turmoil in the diamond 
market caused mainly by 
uncertainties about Russian 
exports. 

About 500 of its 1,900 employ- 
ees were laid off in August 
1992. It is mining only five days 
a week at present and process- 
ing on four days. Last year 
Finsch mined 2.68m tonnes and 
recovered 2m carats of dia- 
monds compared with 4.7m 
tonnes mined and 3.446m 
carats in 1992. 

Mr Webb suggests 1994 out- 
put will be similar to last 
years. But, when market condi- 
tions improve, production can 
be brought back up to previous 
levels in about six months. 


Majors weigh India’s alumina potential 


ByKimal Bose 
in Calcutta 

India with the world’s fifth 
largest bauxite reserve will be 
emerging as a significant sup- 
plier of al umina to the world, 
tiie international aluminium 
majors believe. 

Their faith in India can be 
seen the recent conclusion of 
joint ventures formed with the 
local companies for mining 
bauxite and producing alumina 
for export 

Impressed with the vastness 
and quality of Indian bauxite 
reserve, Alcoa of the US has 
chosen Larsen & Toubro, 
India’s largest engineering 
company, for a project aimed 
at producing and exporting lm 
tonnes of alumina a year. 


Norsk Hydro of Norway will 
be working with Indian Alu- 
minium, an associate of Alcan 
of Canada, and Tata Industries, 
part of India’s largest indus- 
trial group, to build a lm frame 
export oriented alumina plant 
Both projects are located in 
Orissa which accounts for 
nearly half the country’s baux- 
ite reserve. 

Gujarat Alkalies & Chemi- 
cals is talking to Kaiser Alu- 
minium for technology far its 
proposed 500,000 tonne alu- 
mina project in the Kutch dis- 
trict erf Gujarat 
Kitply Industries, India's big- 
gest producer of plywood, has 
signed a memorandum of 
understanding with the Mad- 
hya Pradesh Industrial Devel- 
opment Corporation to build a 


lm tnnnp almnina project 
Mr Goenka, chairman said 
that Kitply was talking to 
some aluminium majors in the 
US and Europe about technol- 
ogy, equity participation and 
mar keting assistance. 

At the same time the Andhra 
Pradesh Mineral Development 
Corporation, a state undertak- 
ing, is looking for a private sec- 
tor partner to mine bauxite at 

Sr lkakulam- V lzlanagarani belt 

and refine it into alumina. 
However, the lack of infra- 
structure and a growing 
extremist movement in the 
region may maka the search 
for a partner difficult 
RPG Enterprises, India’s 
fourth largest business house, 
also wants to build an alumina 
plant 


Meanwhile, Nalco is raising 
the alumina r efining capacity 
of its existing plant to 1.35m 
tonnes from 900,000 tonnes. 
The c ompany exports around 
400,000 (repeat 400.000) tonnes 
Of alumina a year. 

Explaining the reasons for 
the growing interest of alumin- 
ium majors in alumina ven- 
tures in India, Mr Tapan Mitra, 
manag in g director of Indian 
Aluminium, said: "We are the 
least cost producer of alumina 
in the world. The alumina pro- 
duction cost in our proposed 
export oriented project is esti- 
mated at $80 a tonne, which is 
much lower than the world 


average cost" While the lm 

tnrmo Indian Al uminium proj- 
ect will cost $80Qm , a similar 
project elsewhere in the world 
will need an investment <rf at 
least $lbn, according to Mr RN 
Parbat, director. 

He points out that the for- 
eign companies were particu- 
larly impressed that a major 
portion of proven Indian 
reserves of about 3bn trmnps of 
bauxite is of the GIbbsitic vari- 
ety which allows refining at a 
low temperature and low pres- 
sure. It is found along India’s 
Eastern Ghats running 
through Orissa, Andhr a Prad- 
esh surf Tamil Nadu. 


CROSSWORD 


EU moves against Asian garlic 


No.8,551 Set by DANTE 


By Deborah Hargreaves 

The image of the French 
peasant with a string of garlic 
around Iris neck could be 
threatened by e huge surge In 
Imports of the pungent bulb 
from China, Vietnam and 
Taiwan to the European Union. 
French farmers have com- 
plained that the livelihood of 
many small producers and 
family g rowers is at stake. 

The European Commission 
has revoked garlic Import 
licences from Taiwan and Viet- 
nam until May next year. 


Licence requests from Vietnam 
increased by 680 per cent 
between the beginning of June 
and August 19 compared with 
the same period last 
year. 

Ova- the same period, Tai- 
wanese producers raised their 
demands for licences by 4,611 
per cent 

The French formers' union 
hq«f naiipf) on the Commission 
to impose a total ban on 
imports until the middle of 
next year. The French are 
backed by Spanish growers 
which between them represent 


the bulk of garlic produced in 
the EU. 

European producers believe 
that Taiwan and Vietnam are 
being used as conduits for Chi- 
nese garlic following the plac- 
ing of restrictions on Chinese 
Imports in June. 

Last year China sent 40,000 
tonnes of garlic to the EU - 
almost 20 per cent of the entire 
market. This year shipments 
have been restricted to 10,000 
tonnes. Growers complain that 
the Chinese garlic is of a low 
quality and has undercut EU 
prices. 


BASE METALS 

LONDON METAL EXCHANGE 

(Pjtettj from Amalgamated Metal TVwSng) 

■ ALUMMUM. gar PURITY (S par tonnoj 



Cosh 

3 mftxa 

Clow 

1534-35 

1559-60 

Prowouj 

1S39-4Q 

1554-5 

KflMow 

1530.571528 

1565/1546 

AM Official 

16285-29.0 

1553.5-54.0 

KocB ctaoa 


1565-5-86.0 

Open ho 

278.429 


Total daffy turnover 

33,558 


■ ALUMINIUM ALLOY {$ per tonne) 

OOM 

1550-80 

1570-00 

Previews 

1550-5 

1570-5 

High/low 


1575 

AM Official 

1545-50 

1565-70 

Kerb dose 


1570-80 

Open ho 

2,857 


Tool Paly turnover 

523 


■ LEAD (S par tome) 


Close 

809-11 

621-22 

Previous 

604.5-5.5 

617-8 

HgnAow 

605 

622AJ15 

AM Official 

£05-85 

SIB. 5-19.0 

Kerb dose 


821.8-22.0 

Open ho 

41.164 


Total daffy turnover 

8,695 


■ NICKEL (S per lam* 


Ctase 

6210-15 

6306-10 

Previous 

6250-60 

6340-5 

HJgfVJow 

8205 

835018290 

AM Official 

6205-7 

6303-4 

Kan dose 


835080 

Open rt. 

54.373 


Total daffy turnover 

12.724 


■ TIN 0 per tonne) 



done 

6293-303 

5385-76 

Previous 

5375-80 

5435-40 

HSIVKW 


5400/5350 

AM Official 

5310-20 

5380-90 

Kerb glow 


5340-50 

Open ret 

17.56a 


Tote daSy turnover 

2.605 


■ ZINC, spooW high grade (S per tome) 

CJoas 

974-75 

987-98 

Previous 

985-6 

1007-8 

h&gb/low 


10001396 

am Official 

874-4.5 

896,5-7.0 

Kerb dose 


995-8 

Open id. 

97.733 


Total daly turnover 

23.995 


■ COPPER, grade A {Spar tome} 


Close 

2478 5-78.5 

2494-945 

Prwnpus 

2490-1 

2504.5-5.0 

ttfrlflow 

2485 

2504/2494 

AM Official 

2485-85.5 

2498-99 

Kerb doeo 


2500-1 

Open <nt 

216.896 


Total daffy turnover 

40.745 



Base metals continued 

■ LME AM Official VS rate 14490 

LME Ctoatna vs rate 1.5478 

SptC 1-5465 3 Wt»T 1S*4« 6rwta 1.5*13 9 mite 1.3383 


PRECIOUS METALS 

■ LONDON BULLION MARKET 

(prtcae supplied by N M HathacNIdl 

OoU (Troy oil % price C equh r. 

009 a 387.00-3S7.40 

Opening 387.20-387.60 

Morning fix 386.90 250.048 

Afternoon fix 39030 2*9.691 

Da/s Wgh 387.20-387.60 

Day's Low 38850-38080 

Previous dose 387.00-387.50 
Loco Ldn Mean Odd Landtag Rates (Vs USS) 

— 4J32 6 months .4.52 

434 12 months 431 

437 


GRAINS AND OIL SEEDS 

■ WHEAT LOE (S par terra) 


2 months 

3 months — _ 

S**er Rx 
Spot 

3 mon ths 
6 months 
1 year 
Odd Coins 
Krugerrand 
Maple Leaf 
Nw Sovereign 


pftroy o*. 
34935 
353.70 
358.90 
372.00 
S price 
392-396 
397.70-40030 
90-93 


US cts aqiffv. 
540.75 
546.90 
553.95 
57035 
E eqtiv. 
254-257 

68-61 


ENERGY 

■ crude oa. tPE (Ward) 



SeB 

my. 


Open 



Price 

Aenge 


Lm tat 

M 

OCt 

1585 

-637 

16.15 

1525 50376 

11225 

AM 

16.13 

-oa 

1019 

16.02 37285 

6224 

fee 

1623 

•021 

1028 

16.12 20235 

1251 

Jm 

16.27 

-022 

1628 

18.15 8.428 

215 

Hb 

1628 

■6.12 

1628 

1612 4212 

355 

nr 

1626 

-012 

1628 

18-13 0097 

74 

Tela) 




141,190 2*388 

■ GAS 00. FE BUDNM) 



Sap 

14&00 

-120 

14925 

14775 23256 

3295 

Od 

15225 

-175 

15X00 

15075 34,191 

W 

Bor 

164.75 

-125 

15325 15325 12225 

408 

fee 

19680 

•120 15050 15523 18,050 

see 

-to 

157.73 

-120 157.75 15720 12224 

225 

M 

15825 

-120 

15825 

15820 4.430 

82 



Sad 

Oar* 



Opel 



Price 

donga 

fepi 

tee 

M 

*<* 

Sap 

10525 

- 

- 

. 

238 

- 

Bar 

10820 

-605 

10820 

0600 

2267 

1 

Jm 

10825 

- 

- 

- 

1.773 

- 

Mre 

11615 

■610 

1161S 

11600 

1.1*8 

11 

nr 

11225 

-605 

11225 

112.00 

1,118 

28 

M 

11420 

- 

- 

- 

177 

- 

Tetri 





7JDM 

41 

■ BARLEY LCE (£ per tonne) 




Sep 

10320 

-640 

. 

. 

75 

• 

Bar 

10420 

-646 

- 

re 

513 


Jm 

10625 

-0.40 

10620 

10825 

331 

5 

■Lr 

10650 

Clio 

- 

re 

82 

- 

■ay 

11020 

- 


. 

21 

re 

Total 





1,002 

6 

■ POTATOES LCE (C/tormei 




Bar 

1560 

. 

* 

• 

re 

. 

K> 

105.0 

- 


. 

re 

• 

AW 

mn 

+42 

224 2 

2160 

1261 

76 

nr 

2400 

- 

- 

- 

- 

- 

JUG 

1072 

- 

- 

• 

- 

- 

Total 





1291 

78 

■ FREIGHT (BtFFDQ LCE (SKMndeK point} 


feP 

14M 

-2 

1493 

1480 

823 

52 

Dct 

1506 

♦13 

1508 

1495 

B80 

82 

Itav 

IKO 

+10 

1505 

1500 

25 

20 

Jan 

1480 

■4 

1503 

1490 

384 

57 

Apr 

1485 

-5 

1505 

1485 

244 

40 

M 

1380 

-10 

- 

- 

80 

* 

Total 





Z42S 

261 

SOFTS 






■ COCOA LCE C/tonra) 





SeB 

fe* 



Opfe 



price i 


«* 

tire 

W 

fci 

Sep 

MS 

-30 

863 

948 

214 

37 

Dae 

987 


10W 

964 33261 

2232 

nr 

1018 

-16 

1023 

1015 32259 

1.478 

Bar 

1032 

-15 

1038 

1028 

11Z74 

481 

Jri 

1046 

-14 

1052 

1045 

5,173 

445 

Ste 

10SQ 

-12 

1064 

1057 

9,017 

148 

lew 




102,712 4326 

• COH=€E LCE (Wenne) 





Softs continued 

■ No 7 PBBMRt RAW SUDAB ICE (oern^tbel 

SMt Oafs Qpaa 

Prt» «tae>e HP 1» H W 

Oct 1234 - - 1,801 ■ 

Jan 11452 - 

ite 1224 80 

Tetri 1*91 

■ WHITE SUGAR LCE (S/tarre) 


LONDON SPOT MARKETS 

■ CRUDE OIL FOB (per tamt/OcQ -w 


Od 

323.70 

+690 

324J00 

32220 

6388 

337 

fee 

320.70 

-030 

321/40 32030 

2J01 

30 

He 

32040 

+620 

32640 

31650 

8,134 

84 

nr 

32000 

♦030 

32650 

32000 

550 

3 

A»B 

37020 

-060 

- 

- 

370 

• 

Od 

30830 

+650 


- 

206 

- 


LONDON TRADED OPTIONS 


Set* 

3965 

+37 

3S7Q 

3940 

3.114 

se 

Kw 

3870 

+47 

3885 

3800 

16801 

1,496 

Jm 

3822 

+34 

3830 

3780 

11,906 

520 

Mb 

3759 

+01 

3780 

3730 

5.878 

478 

nr 

3723 

+25 

3735 

3715 

1.479 

45 

Jd 

Total 

3718 

+10 

• 

- 

55 

34*33 iJBB 


Tote 


183,711 0248 


SWa price 6 tome 

■— -Ce 

Be — 

— pots — 

■ ALUMMUM 





(99.796) LME 

Oct 

Jan 

Oct 

Jot 

1500- _ 

67 

no 

IS 

38 

1625- 

51 

95 

23 

47 

iran.. 

37 

82 

34 

58 

■ COPPEH 





(Grade A) LME 

Oa 

Jan 

Oct 

Jan 

24C0 

115 

150 

17 

57 

2460 

60 

121 

31 

77 


52 

66 

S3 

101 

■ COFFEE LCE 

Nov 

Jan 

Nov 

Jan 

3600 . — 

388 

402 

115 

270 

3650 

S3 

465 

133 

233 

3700 - - 

323 

439 

153 

317 

■ COCOA LCE 

Dec 

Mar 

Dec 

Mar 

1000 

53 

91 

59 

78 

1050 

36 

69 

98 

101 

1100 _ 

23 

63 

136 

135 

■ BRBIT CRUDE PE 

Od 

New 

Od 

Nov 

inm 

23 

. 

26 

50 

1650 

9 

34 

67 

77 

1700- 

3 

24 



Tree 





Thera ares good generri demand 

this ween 

reprrt the Tea Breton Aa acclaim The Srfft 

new seasons Am erne opened ta wrdeaprMd 

Waractvrittt Mfeded bed Inee Mfl in mesa 

el 200 pence. Good 

metAana were reed ly 

absorbed d around valuation. Coytane ware 

fully firm to several 

pence dearer for 

the 

brighter Inos. Quotations: beet avdlsfate 200p. | 

ran good 146p«eod medtam 135p, medKsn | 

1170, low median OOp. The Nghest price rad- 

tied Bile week was 260p tar wi assam pt 




Dubai 

S1S.OO-&07I 

-0160 

Brers Blend (dated) 

SI 5.43-5.48 

•0288 

Brent Bfend <Oc«) 

SI 5.90-595 

-0266 

W.TX {1pm asp 

S17.35-7.3a 


■ OA. PRODUCTS NWE prompt dritaary OF (tame) 

Premium Qasotne 

SI 84-187 

■e 

am OB 

$150-151 

-li 

Heavy Fuel Of 

572-73 

-2-0 

NxpMtre 

$157-189 

-15 

Jet tud 

SI 87-188 

-05 

■ OTHER 



Gold (pot troy M4 

S307.2O 

-005 

SSvar (per tray osJt 

542.5c 

-15 

Ptadnum frw troy oej 

S41&S0 


PaBadisn (par troy o:.] 

SI 5425 

+150 

Copper (US prod) 

1200c 


Lead (US prod.) 

38J25C 


Ttn (Kuala Lumpur} 

13.48m 

-0.19 

Tin (New York) 

24&6e 


Cattle (hre weighty© 

11&Z7p 

+2JXP 

Sheep (hre weigw»*0 

89. OOp 

-051 ■ 

Pigs (Rve wriutmC 

73J7p 

-158* 

Lon. day sugar (raw) 


-03 

ten. day sugar (wta) 

*3305 

■7.7 

Tats & Lyle aeport 

Z308J3 


BOTey (Eng. feed] 

snoe-Ow 

-05 

Mate (US No3 Yefew) 

$1600 


Wheat (US Deric North} 

eiaao 


Rubber (Oa)? 

ae.sop 

-150 

Rubber (NovlV 

85J0p 

-150 

Rubber w. FKS Not Aug 

31850m 


Coconut Oil (Ph8)§ 

SSSSDz 


RUm Oil (MaJay.)§ 

Seoaow 

-55 

Copra 

$415.0 


Soyabeans (LB) 

C185JVJ 


Cotton Outlook "A" index 

75,65c 


Wootteps (S4S Super] 

457p 


t par tonne u riem offirevnw etna a p panaofig. t eeetafe. 
r rtnosM#- m Netayrirei cantsffm. u NmUan. i QoL i fepf 

Od w Sep . f London Riyderi. $ OF Ftafcrtsn. « 

SuBon market dare, f Sheep (Live weight pries*}. * 
Charge on wa*. o Prlesr are lor pwHoie day. 

INDICES 



■ RHJTBW (Baa* 18/9/31-100) 


Sep 5 Sep 2 

month mb year ego 

2088.4 2057.4 

2Q92J3 

16335 

■ CRB Futures (Bose: 1987-108 




ACROSS 

1 Check demand for material 
<B) 

4 The Utopian has his own col- 
lection of notions (8) 

9 Completely exhausted but 
m a kin g marimnm effort (3.3) 

10 A round about way to get a 
letter (8) 

11 Roll includes any new writer 
<G> 

12 A number expelled are down- 
cast (8) 

13 Inspired piece of music (3) 

14 Many move op, being bright 
( 6 ) 

17 Point wrongly claimed (7) 

21 A stem guide (6) 

25 A mercenary will fight for it 
<3> 

28 Brief case (8) 

27 Digs out stories that make 
the headlines (6) 

23 Hard lines 03) 

29 Some particular soldiers, per- 
haps (6) 

30 Trying hard to persuade one 
it’s urgent (8) 

31 Undoubtedly the trendy thi n g 
to do (6) 


DOWN 

1 flinch because of a handles 
( 8 ) 

2 A gremlin disposed to swim 
the lead (8) 

3 Cried out - to the police? (8) 

5 This club needs a licence (6) 

8 He takes his bow before pei 

forming (6) 

7 Listen out for bays (6) 

8 Abusive words from om 
engaged in commerce (6) 

12 Watch, no bands! (7) 

15 It is among the more dnmi 
nant colours (3) 

16 Sailor possibly low in ciga 
rettes (3) 

18 Meal takes an age - unneces 
sarily (8) 

19 He should know how to presi 
a suit (8) 

20 Showed anger In hatr-ralsins 
fashion (8) 

22 Catch in Antwerp on thi 
loose without wife (6) 

23 leader of the squad tried tc 
change step (6) 

24 Wraps around one’s shoal 
ders (6) 

25 Lose a wicket but don’i 
declare (4£) 


SKS £ pnz2le on Saturday September 1 

Solution to yesterday's prize puzzle on Monday September 11 


Bap 2 Sep 1 month *oo year ago 
232.48 Kg BO 231.05 21808 







1 ■ - , 


IV*. h 





{initial 


1OSSW0RD 


Jk in 

T.-+ 


M 

■ a 


a K 

if 
if 


FINANCIAL TIMES 


MARKET REPORT 


TUESDAY SEPTEMBER 6 1994 


LONDON STOCK EXCHANGE 


Economic data help share prices move ahead 


By Terry Byland, 

UK Stock Market Editor 

Favourable data on UK money 
supply and consume: credit, both 
ra nti n g reduced pressures for a 
nse in base rates, enabled the Lon- 
don stock market to move ahpflrt 
yesterday. Share prices opened 
lower against a background of 
weakness in band markets and ner- 
vousness ahead of this week's meet- 
ing between the UK chanr-aT^r 0 f 
the exchequer and the Governor of 
the Bank of England. 

However, an early decline of Id 
points on the FT-SE 100-share Tnd«*r 
was recovered following the news 
that MO money supply had risen by 
an annuali s ed rate of only 6 J 2 per 
cent in August, below market pre- 
dictions' 

By the close the FT-SE 100 was a 


net 1£L8 up at &M1.5, with the UK 
market brushing off weakness In 
the US dollar and in other European 
bourses. But in the absence of a 
lead from Wall Street, closed for 
Labor Day, trading volume in Lon- 
don was unctaivinang and the mar- 
ket was dominated by the pladng of 
stock in WPP, the advertising 
group, and by activity in a handful 

Of arnaTl com pany ffft prfiw , 

London's performance, which 
reflected an easing of worries that 
the meeting of the UK nhanranrw 
and the Governed of the Bant; of 
En gland might, focus on arguments 
for a pre-emptive increase in base 
rates, ran counter to the general 
mood in other markets. Nervous- 
ness over the outlook far European 
interest rates increased following 
wider publication of the bearish 
views on German rates expressed 


by a leading US Investment bank. 

The FT-SE Mid 250 Index, which 
incorporates a wide range of second 
line issues, gained 7.4 at 8,788.7. But 
traders admitted that yesterday's 
market was not folly tested and 
that London could yet follow the 
trend seen elsewhere in Europe. 

Seaq volume of 765.5m shares was 
higher than Friday's total but was 
swollen by the placing of 120m 
shares in WPP, double counted as 
they were passed through the mar- 
ket. Non-Fo otsie business, which 
Inrh^pf i fhw WET placing, nintfo up 
75 per cent of the day's total, well 
above the normal average. On Fri- 
day, 7i5jam shares through the Seaq 
electronic network were worth 
£L49bn in terms of genuine retail 
business in equities, comfortably 
towards the higher end of this 
year's daily averages. 


At least two trading programmes 
were reported yesterday, and the 
market was often led from the stock 
index futures sector. A fairly strong 
list of company profits due t his 
week opened yesterday with trading 
news from Burmah Castrol, which 
disappointed some market special- 
ists, and Coats Viyella, which 
responded more favourably to good 
half-tune figures. 

There was demand for UK bank 
shares yesterday and oil stocks 
looked firm in spite of a more slug- 
gish trend in crude prices. 

Retail and consumer shares 
joined In the general improvement, 
atthmigh the July consumer lending 
total fall well short of market expec- 
tations. Analysts said that the unex- 
pectedly low lending figure of 
£296m reduced the dangers of early 
action on base rates - a factor 


favourable to retail stocks. 

Later this week the market will 
take in profits reports from a num- 
ber of leading blue chip companies, 
including Glaxo. RTZ, Sun Alliance 
and British Gas. 

While good figures are widely 
expected from Glaxo, the market is 
likely to show more interest in any 
comments cm the progress of Zan- 
tac, Glaxo's anti-ulcer drug, which 
still provides nearly half of group 
profits but now faces the prospect 
of competition from generic rivals. 

There will also be news this week 
from the building and construction 
sectors, which are areas seen as 
sensitive to the pace of economic 
recovery. While some market ana- 
lysts have recently recommended 
UK housebuilding stocks as due for 
recovery, the news from the indus- 
try remains somewhat mixed. 


FT-SE- A All-Star* Index 

1,675 

1.650 

1,625 f\M~- 

1,600 - - gj -- — 

1.550 i*/- — 

1525 - - 

1,475 fA. .1- - 

1,450 

-w a* a 

SouwFTQnpm 1984 

■ Key Indicators 

Indices and ratios 

FT-SE 100 3241.5 

FT-SE Mid 250 3788.7 

FT-SE-A 350 1634.1 

FT-SEnA AB-Shans 1620.78 

FT-SE-A AIT-Share yield 3.68 


Equity Shares Traded 

Turnover by volume (mSuy. Erctuang 
Irttm-mariuit buaneaa and momma turnover 
1,000 — — 


FT Ordinary index 2512-2 t6.0 

FT-SE-A Non Fins pfo 20.04 (20.27) 

FT-SE 100 Flu Sep 32J7.0 *21.0 

10 yr GUt yield 0.07 (8.67) 

Long gflt/equity yM ratio: 2.40 (2.37) 


Beat performing aactora 

1 water 

+1.7 

Worst performing aactora 


2 Textiles & Apparai 

.+1.7 







4 RstaNers, Food .. 

+1.2 



6 Printing. Paper 

+1.2 

5 Household Goods 

..-0.4 


Heavy 


for WPP 

A ctivi ty in WPP, the 
advertising and marketing ser- 
vices grot®, dominated yester- 
day's business in the Txindnn 
stock market. Banka that 
bailed out the company two 
years ago through a convert- 
ible share issue sold much of 
their stake into the market, 
raising ciaftm, 

The heavily oversubscribed 
placing by S.G. Warburg on 


behalf of the syndicate of 28 
banks led to total turnover of 
246m shares in the stock yes- 
terday and represented a third 
of the whole volume in T-nnflon 
equities on a day dulled by 
closure of Wall Street for the 
Labor Day holiday. 

The shares converted for 
around 50p each and had been 
expected to realise about lOOp. 
By Friday, marketmakers were 
talking about a price same 10 
to 15 per cent higher. In the 
event, demand at the top level 
of the auction-style book build- 
ing process was such that 
applications could only be 40 
per cent satisfied, and 120m 
shares were sold at the top 
of the range price - U5p. 


Of t he 70m shares remaining, 
half had been sold forward by 
the hffnfcg and other ha lf 
had been moved into the 
banks' own fund management 
arms for investment purposes. 
The underlying WPP share 
price ended 3 higher at 123p. 

Standard upgraded 

The best individual perfor- 
mance in the FT-SE 100 Index 
came from Standard Char- 
tered, the banking group, 
whose shares extended last Fri- 
day’s good Showing, fintWhhig 
10 higher yesterday at 265p. 

Dealers said the Impetus for 
the shares' bout of outperform- 
ance came from Lehman Bro- 


EQUITY FUTURES AND OPTIONS TRADING 


Stock index futures had a very 
quiet day, with turnover of only 
124?42 tots. The low volume 
made for volatility, with the 
September contract yo-yoing 


between low and high points, 
writes Clare Gascoigne. 

The FT-SE 100 contract for 
September delivery got off to a 
shaky start, down 12 from 


■ FT-SE KM INDEX FUTURES (UFFQE25 parftfi laden point 



Open 

Sett price 

Change 

High 

Low 

Eat vol 

Open mt 

9ep 

32145 

3247U 

210 

32G&0 

3206.0 

14281 

48705 

Deo 

3228.0 

3282.D 

21U 

3269.0 

3221.0 

3844 

13045 

Mar 

- 

3288.0 

*1 JO 

- 

- 

0 

100 


■ FT-SE HP 250 MDEX FUTURES (LffFQ £10 par tuB Mat point 

Sep - 378&0 -2X1 - - 0 4172 

Doc - 38045 -2-5 - 0 580 

■ FT-SE HUP 250 8IDB{ FUTURES (OMUQ CIO per M Index poin t 

Sep - 3785.0 696 

M open knraat flam n§ lor predaua day. t Bract vakme shown. 

■ FT-SE 100 MDEX OPTIOil (UFFg pg40) 210 per ftil Indrat pcfait 

3060 SIM 3150 3200 3250 3300 3350 3400 

CPCPCPCPCPCPCPCP 

sa« 100*2 i»a fan i us k is 9 34 w 86*2 ft 11 a i ies 

Od 205*2 13 164 >2 21 120Z 32 92*j 48% 83*2 » 42% 80 28*2 13ft 1ft 173 

N» 226*2 24*2 137 35 151 40 119 6ft » 87*2 67 T15 « 145% 31*2 182*2 
Ok 245*2 38 208*2 50*2 173*2 63*2 142*2 03 1 IftIDft 8ft 128% SB 158 48*2132*2 
*fcrf 300 10! $4ftHft . . 186*2 106 142 242 

ca* 4jMB mu 1,875 

■ BIRO WIVE FT-SE 1QO INDEX OPTION BIO per ftfi Index pohrt 

3075 3125 3175 3225 8275 3325 3325 3428 

Sw 1W2 3 128*2 5 m*a 10 42*2 Z0>2 17 *5 fe 83*2 1 129 1 178 

Od 180 17*2102 28 16ft 40 7ft 5ft 54 83*2 34*2 114 20*2149*2 11 190 

Nm 187*2 39*2 181 72*2 • 54 124*2 25 194 

Dec 189 54 125*2 09 7* 138 42 202*3 

Junt 341 82*i 181 120 132 168 92*2 225*2 

CM 1,290 Mi 215 * IMKftftB Wk rata. Piantae tarn n brawl on w nfl prices, 
t Lang *tod mp&y Burto. 

■ BUBO STYLE FT-SE MP 250 llPBC OPTION (OMUQ 210 per M Index point 

3500 3590 3000 3550 3700 3750 3800 3850 

Sap 74 27 48 48*2 28 70*2 

Mb 0 MB 0 SgtttawMi price* and w**w» ■> Man at 4J0pm. 


FT - SE Actuaries. Share Indices 


Friday’s close, and fell to test 
the 3,200 level early In the 
morning. However, there was 
plenty of support to prevent it 
dropping too fa-, and after 
touching the day's low of 
3,205 it began to rally gently. 

The morning's squeeze was 
tested after lunch as locals - 
independent traders - called 
September low and it received 
no direction from the US, 
where Wail Street was closed 
for Labor Day. But It climbed 
steadily throughout the 
afternoon, reaching a high of 
3,256 before dropping tack to 
dose at 3,247 - only 3 points 
above its estimated fair value, 
the premium which stows for 
dividends and the cost of 
carrying. 

Bullish traders who 
suggested the contract would 
move higher in toe next few 
days, tasting the 3,280 level, 
received some comfort from 
after-hours’ trading, when it 
rose to 3^54. 

Activity was equally slight in 
traded options, with volume of 
only 16,740 lots. FT-SE and 
Euro FT-SE turnover totaled 
1,405 co ntract s . Hanson was 
the most active stock option, 
with 1,222 lots traded, 
to Bowed by Zeneca with 1 ,020. 


'he UK Series 


FT-SE 100 3841 

FT-SE MM 860 3788 

FT-SE MM 280 or fciv Trust* 3794 

FT-SE-A 350 *834 

FT-SE OmtaCRp 1012.1 

FT-SE BmaKap ex faw Trust* lOTSt 

FT-SE-A ALUSMAHE 18ZO.J 

■ FT-SE Actuaries All-Share 


Day 1 * Y«r 

Sep 5 Chge% Sep 2 Sap 1 Aug 31 ago ; 

3241.5 +0.6 3222.7 321&5 3251 J 30500 

3788.7 +02 3781.3 37843 3816.6 3475.7 

37943 +02 37854 3801.2 38203 3433.3 

1834.1 +03 1826.1 1826.0 1B4a7 15323 

181212 — 1011.89 101054 180330 1785.77 

1875.84 +0.1 1875-87 187438 187032 179635 

1820.76 +4L5 1613-37 101227 1628.34 151221 


Earn. p/e Xd ad. ToW 
yteldK ratio ytd Hatan 

273 1733 0023 1221.68 
i 5*8 21 in 80.03 1*06.79 

6.93 20.41 91.77 1406J2 

6.44 1848 43S8 1259.81 

4.11 31.14 3821 1478.08 

4-S6 2834 39.14 1486.19 

&2B 1283 4274 127093 


10 MINERAL EXTRACTTlONffS) 

12 Extractive tndustrtea(4) 

15 <X WoprawdH 

16 oa BgggnaMon a Prodtii) 

20 0B4 MMfJFACTUREBBQJBq 

21 BubSng A COnatracttonpaj 

22 Buflfflng Malta & MerchepU 

23 Ghamlcat*(2Z) 

24 Dfwrafflod UMusttflJ8(169 

25 Qoctronta & Bee! Equip<35) 

26 Engkieerin8(7lJ 

27 C w ato w rtnq. VeWdes(12) 

28 Printing. PapwB PcUgBQ 

29 Taatitee 3 AppaMgQ) 

30 CONSUMER 00003(97) 

31 BrewatosflT) 

32 SpH*. Wines & CldersflO} 

33 Food Manutaaure™t23) 

34 Household Good*(13) 

38 Health CarePD 

37 Phamuc«41(WE(12) 

33 Tobaccod) 

40 SERMCEStHB) 

41 Dtotributofs{31) 

42 Letsuna & HoWs<24) 

43 Mwtopaj 

44 RetMsra, Footing 

45 RataHera. Ganera<45) 

48 Support S«fVkw(40) 

40 TronsporttlB) ^ 

SI Other Samba* 8 

oa imLmespo) 

62 awWcftytiTl _ 

64 Gas DWWPulton® 

88 TetecommunicaiMf^W 


70 FWANOAlSflta 

71 BonteCIW 

73 tnauranco(17) 

74 DM AsanmcatB) 

75 Marehant BanksW 
77 other flnartctafl24i 

79 Proper ^**) — 

ao WVESTM afr TRUSTS^ 

89 FT-S&A AU^SHAREpaft 

■ Hourly mowenienta 

Qprai S * 0 

FT-SE 100 3214.1 ^12 

SS mw»o «« 52} 

FT-SE-A 350 '® 21 - 8 


EttflTa Y*ar Dtw. Earn 

Sap S ChgM Sip 2 Sap 1 Aug 31 aflO yWdK yieM9t 

2802.01 +0.7 2781.78 274091 277391 232990 394 5XJ5 

102791 469 4Q20.7B 398327 401221 341220 3.18 SJ» 

778248 +09 274096 270394 27Z790 223290 393 SAZ 

194895 +19 1B2S99 191794 19B294 1B8BJM 2-48 198 

ZQ5QA5 +04 204194 204342 2058.15 191390 3.60 458 

121193 +0J 120396 120198 120495 1158.70 210 497 

202592 +09 201697 201793 2029.73180890 393 398 

2508.45 +0.1 2508.04 2616.77 2524.87 223490 270 495 

7050.79 +0.9 203276 203798 2048.16 199590 4-43 496 

7009.75 -09 202198 203198 204990 214390 273 898 

191287 +02 190994 18S3.70 191192 1685.60 298 490 

738495 -09 237892 239498 2381.78196990 413 248 

2914.09 +19 2879.70289398 291293 247290 290 594 

173394 +1J 1706-48 169992 172291 1917.70 392 698 

788699 +0.42874-45 2870.73 2903.10 2840.70 403 790 

J38404 -0.1 2368.84 238598 238298 210030 490 797 

300397 +09 299699 299491 3031-49 29S270 398 241 

241299 +09 239890 236991 241405 237410 397 793 

£54190 -04 2551.14 2581.00284697 244990 393 798 

1 72596 -0.1 172797 172591 17Z7.12 1811.40 299 218 

316795 +09 3160.73 310693 3213.72 313890 394 697 

3804.45 +09 3783-48 3712.17 370798 3952^0 5.70 994 

>01028 +02 201457 2021.79 2033-48 1S3B.10 3.04 594 

3730.78 -04 274299 2753.68 275791282090 391 B.48 

711097 +04 2108.03 211993 213195 198390 397 498 

296493 +02 2959.14 298198 2882.18 253890 291 599 

187794 *19 1B544818549B 188048160990 042 699 

1731-48 -01173298 174395 175398 185890 392 890 

IM493 +09 15942S 158090 167791 184890 2.56 589 

075.77 -03 238392 238591 2415.11 230790 393 3.10 

inwm +Q1 1327941321961321.06131390 391 2.10 

K51&10 +05250293 261993 2562.15 230480 419 7-49 

>65069 _ OSBJBT 208&16 274798 192050 045 026 

■99499 +09 197&72 1972.82 201098 217890 891 t 

»8791 +04 207898 2063.73 211097 211490 396 794 

imhm +17 19479S 198190 201 1,71 184190 4&1 11 98 

175495 +04 1747.07 1748.15 176490 164397 394 690 

amsi +09 225196 2235902248972161.60 420 8.73 

-910.75 +1.1 2888.77 285*94 2873.61 2609.80 4.13 ft1B 

1291.42 +09 1Z7396 1288^8 12E4.17 1440.10 4S3 1247 

>652.77 *1.1 2S2458 251596 254691 282090 488 7.12 

1194.76 +19 315427 318793318021 309440 022 1094 

>01898 +07 2003.77 200396 2001.75 181890 392 791 

ISS394 -04 158096 156477 1S029B 15B430 895 400 

Hi 597 -02 292016 291497 2943.17 2S5440 298 1.79 

B20.76 +06 1S1397 181297 1828.84 151221 398 028 


am p/E Xd m 2 Total 
IcHt raBo ytd Ratum 

695 2488 6471 1118.45 

590 25.05 5424 109898 

542 2290 5999 112498 
198 BOOOt an -*** 1117.11 

458 20.70 52-06 104095 

497 2949 21.47 942.10 

396 3148 4051 94890 
495 31.15 7297 110999 

456 2890 6486 104454 
B98 1995 5899 98197 

490 2S92 3898 108090 
248 5890 5493 113796 
594 2897 5492 114028 
698 2013 4049 976-54 

790 1693 83-37 98895 

797 18.72 8093 105063 

841 1398 BBS? 100790 

793 1595 71.03 101198 

798 18.43 5290 906.12 

3.18 4442 3598 W79S 

697 1697 7095 90488 

994 1199 21797 86793 

594 2091 4291 88843 

498 2593 4893 104197 

009 2297 6098 102898 
69S 1475 45.10 111992 
690 2012 3595 82245 
598 2093 28.12 871.72 

5.10 2290 4292 82894 

2.10 B090t 2148 1137.83 
748 1696 7342 88891 
226 1291 63.46 110593 

t t 6079 81194 

794 1016 60 92 880.11 

OOP 2004 4397 123496 
073 13.15 6097 88995 

MB 184011494 87740 
247 088 4055 88298 

7.12 1794 6594 07091 

094 1197 7642 061.09 

791 1894 4690 107299 

400 31.15 3BL08 68098 
1,79 5066 4064 870.13 
898 1083 4274 127098 


HflhMw Inwftfcflr 

32419 32084 

3786.7 3709.1 

16341 10106 


■ FT-SE Actuartoe 350 Industry baskets 

■ 1190 1000 1 O 00 MJW IfiyOO lOl 


Ml 1090 1190 129 0 1690 1490 1590 IPIO Ptaw Prmrtou* Ognga 

' . 1188,7 11718 11719 11729 11728 im.7 11749 117S9 1165-1 +69 

Bktt & Cnsticn JJ"'* 3115 a g 12 S9 51284 31384 31389 31229 31429 31429 31249 +179 

P^macauttcte ,949.7 10739 19739 18742 185U6 10759 18784 19784 10402 +639 

Waw 29^0 9179 WU 29459 20449 20509 20409 20444 26502 28663 29249 *314 


Pharmocauncte 


thers, cme of the leading US 
investment banks, with UBS 
also reported to have been rec- 
ommending toe stock. T/ jhrrian 
was said to have been an 
aggressive buyer of the stock 
last Friday and throughout 
yesterday after upgrading its 
profits forecast for Standard. 

The US brokerage was 
thought to have its 

current year estimate from 
£480m to £S06m and lifted its 
forecast for next year from 
£525m to £575m. 

Food sector active 

Credit Lyonnais Laing was 
behind a number of significant 
moves in the food xnaim h ct ar - 


TRADING VOLUME 


■ Major Stocks Yesterday 

UoL CtoWig OqfH 

OOCH prtea damn 

ASmOraopt 4900 B4*i -*4 

Abbojr NMtaralf 2.BOO 428 «fl 

Atonrt RUw 43 50 

A— d 424 BIS 

AngBanMnar 200 380 +19 

Mgn 20 357 -3 

Ana Orwot 4700 2B8 <0 

/4-VWgokMf 2jm0 273 +0 

Ansa ttfl-Foodst 81 689 +0 

Anoa Bdt F+vt* 1 200 202 -1 

BAM 043 SOI 

BAT feKtt.t zsm 434 «3 

BET 274 118 4*z 

BKX 382 400 -2 

BOCf 1B7 795 -2 

BPt 4000 422 +S 

0 PB kids. 1^00 322 +3 

BIT 10900 381 +1*J 

BTjSMV** 8,100 271 +1*5 

BTRf 4JBQ0 302 *3*5 

Book <V Sccdandf 1J00 210 

Bactzymf BMS SB3 +8 

BSMt >.000 579 -4 

BkaCMat 471 318 

BDOla- 3+8 445 +10 

Boaaf 1^00 $40*9 -ah 

Bowdnt 382 473 +5 

BrtL AMOMMCnt 828 513 

EKIMh Afewvft 2.700 408*2 -«*2 

MMi OwT 3.100 301 fZh 

BridatiLand 81 400 -3 

BrSkh a»off 4200 180*2 -X 

Bund 1500 173 +7 

Cmooff 810 881 -14 

Bum 1900 04*2 f*2 


BkaChdaf 

BDOk» 

Boaaf 

BowntluT 

BrtL ABfO+pOCot 

BOMiAfewaM 

Brtfc+i Land 

Brifchaaolt 

Bund 

BamCoHir 

Bum 

CoMo & Wlrof 


818 881 
1900 0*h 

788 4SS 


Cacbuy SohiniHiaaf 9T1 480 -4 

Group 10 278 

Oandatf 4aoo aio +3 

Cnton Coowntf 112 8+6 +2 

ewanfl yyaf, 4aoo 220 +e 

Oomm. UMonf 
Ooakm 

CDutaMVt 1 2.100 518 +2 

MU 


1.700 268 

%100 518 +2 


888 

Ohara 887 20S 

Eam n Boat. 4,100 782 -3 

MMlIn1S«V M+ 767 -3 

Ena CMra Om 874 385 +2 

BitaipriM Off 1900 382 +3 

Euotum unsa ioo 288 -i 

FW 848 162*2 -h 

Fkm 2900 131 

Fonioi 8 CoL LT. 871 143*2 

FbfMf 233 ZB +1 

Cm-AccUnct 338 581 +10 

OMAdBuf 2900 208*2 -all 

Ohxot 1900 033*2 +4*2 

fflyrawd 1900 *40 

OvnMat 487 -1 

Grand Mott m 447 +8 

ou st 320 687 +1 

onef 1900 187 +s 

GKNt ^ 5S» 884 -a 

Oukmrat 1900 490 

H38C (73p dart 3900 744 +8 

I tm w iHi 12 384 

Mraolf 5900 253*2 +1>l 

HBitocra CraHMd 1900 185 +1 

HM 13S 300 +2 

lc ft town 3900 182 +4 

M 586 S35*» 

Of 2900 841 +8 

Incflcopdf 185 488 -2 

JBflraanlMtay 81 584 +7 

KMhhorf 413 328 +1 

IMham 88 819 -a 

Lachnfeat 2900 154 +2 

Land StocwRaat 868 543 -4 

Lapom 181 784 -3 

tejisfl & 241 082 +2 

UGiXh Ate-y 55 382 

IkndB Barter 1900 573 +2 

LASMO 2.+00 159 +4 

London BoH. 655 889 -12 

Uirttn B/OQ 132 -3 

Lucas 355 187 

MS>Ct 343 469 -8 

UR 2900 144 -14 

I hab 128 531 +8 

Marte & Spanaaf 2900 428*2 +*2 

HrtMtBra. 1900 78B J 

MantaraMAiil 264 141 -1 

M=Ct 1900 175 -1 

NsWrat BanfeT 5900 603 18 

Naotand PoMerf %400 bia +2 




205 -2 

782 -3 

767 -3 

385 +2 

382 +3 


Nodi Wart Wahrt 
NorMniBM. 

NotOwin Foodaf 


yet 

S3 4 

Brad ULt 1900 7*1 +3 

HentoWT 1.700 233 +4 

nartauf ^ 502 508 -2 

UlRoyraf 4900 184*2 +4 

nXBkgcrtanrft 228 434 

RnU hausicnf 1900 288 +2 

SaMaayT JL40O «7 +8 

SdMdan 391 1625 +47 

ScrtU&Nmt 664 883 -S 

GcoL Hxto^act. 1900 407 -1 

8ooOMi Poorrf 19<n « -2 

east 1.700 121 +1 

Scdaafck 168 184 +1 

»5K ra d ^ 1900 444 +7 

SndnDnt 1900 $78 +7 

Slwl nmponT 3900 7H8 +6*3 

9M»t 13® SBfi « 

StaufliEM 88 248 

8iT*fi(WJU 287 +ee -3*2 

SrtBti&NwhaiVf 52B 157*2 +*fl 

SnMBaartwmf ^ 1900 448*2 +1*2 

SmW m adam Ua.f GOB 407 .2 

SBflMMo. 123 463 -3 

Baitran Baetf 1900 7BB -9 

South WWa Baa 78Z 786 « 

Saudi IMatWBv 104 671 

South Wart. Beet 763 BIO -€ 

SooMfn Wrtar 35 008 +12 

MoMCMLt 3905 235 +10 

SaonaaiMi 384 220 

BwiMwcaf 1900 3S +8 

TIH 823 231 -8 

-naoupt i,iod 37+ +2 

TBSt 4,700 233 +5*2 

Tonnaa 4900 183 +2 

TtdaAUta T83 449 +8 

IMsr modnai 5EB 183 

Tweet 3900 254 +fl*i 

imMWaait 22S 539 +9 

ThanBXt i,eao 1015 +e 

TomUrtf 1,700 236*2 -**2 

TaUhf House 2900 81 +1 

Unto* 422 972 

IkSwrt 1900 1183 +17 

Unfed Btoartrf 881 332 +2 

Urt WWIliflMh* 88 B34 +1 

itakdarat 2900 200 

sssr* s s s 

WdUlVMaf 76 703 +7 

WaaanMUer « 850 +7 

m t ndf 1900 6«!*a +8*i 

wm aUMgat 1.100 370 +3 

WHbConoon 125 151 +4t 

Wfapor 977 1BG -1 

WohdWt 63 798 +1 

YodoMvBaCL 870 770 +0 

Vorhahh+VMa 581 595 +10 

Zaraert 1900 «w +*o 

Baud ra Mdhp urtumo Igr • aslaafliai of mtfh’ 
aocutUM dart mw^i flw SEMI qaaam 

jnaadv *m 490pm. TlaciM of ona mBoair 

rto™ «n romdort dram, + Indlcam an FT-flE 

lOOMMeenadhm 


581 *12 

834 +14 

215 

797 -1 


SM 077 
1900 T07 

2,100 684 

2.7D0 337 

120 1007 


638 +8 

877 9 

TB7 +*» 

684 +1 

337 *8 

007 +8 

886 +1 

257 -1 


ISSS 

Sow+n Traaf 

awinaaponf 


ITha FT-SE A 

KUMlWfflM 


tog sector, triggering weakness 
in key stocks such as Cadboiy- 

Schweppes, 4 softer at 480p, 
and good rises tn Tate & Lyle. 9 
firmer at 449p, and Hfllsdown, 
4 up at L82p. 

CLL also unsettled Hazel- 
wood Foods, which dipped 4 to 
139p as the broker shifted its 
stance from hold to sell. 

There was mild disappoint- 
ment in the market with 
Interim results from Burmah 
Castrol. the lubricants group. 
Net income was below best 
estimates, as was the dividend. 
But analysts said the market's 
reaction was more a reflection 
of the stock’s recent strong 
outperformance; the shares hit 
an all- time high of 9I5p last 
week. They closed 14 lower 
yesterday at 891p. 

Ms Irene Himona, oil analyst 
at Strauss Turnbull and a long- 
time bull of the stock, said she 
still viewed the shares as 
“undervalued'’. Mr Bruce 
Evers at Yanutichi Europe said 
he remained positive on the 
stock because of its good expo- 
sure to the recovery in Europe 
and to the US and Far East 

Figures from Coats Viyella, 
the UK’s leading textile group, 
saw the shares improve 6 to 
226p following recent under- 
performance. Half -time profits 
of £8S.2m were at the top of the 
range and analysts were 
relieved to hear that the com- 
pany's difficulties in Turkey 
were easing. However, some 
analysts expressed caution 
over the low level of growth at 
the operating profits level The 
profits range for the full year is 
now between £160m and £170m. 
There was strong speculation 


NEW HIGHS AND 
LOWS FOR 1994 


BREWERIES M Hott W, Mmon Thompson. 
BUnJMMl 4 CNSTKN p) 3 mmh.f»M 
CHEMCALS fl) Wolttontattm Rnk, 
nsnwtiram 10 j«*» (Wm), now, 
On HDUM Hg P UiDtS ft) TT. Eie C TWCTTV P) 
Nrt Power. ELECTRNC 8 ELECT (OUP R 
Comma, P lrau e c . Tfeoae. DnBHM n 
Boatfi bNrt Ejipanai msx Rmna, Ronald. 
T*«% R. ENOL VB8CLES (1) Auflow 
SMui+nM, EXTRACTIVE BBS M Ad(A> Am 
Curt Bortfer Gold. Drartualn, Goncar, 
Hamonjr. Ktort GoM. tend Lfeot. W w i iam 
Amo. HOU8BIOUI OOOOa tU Stack (PL 
Swaaowawa, mvestmekt trusts n contra 
-Cydcal Cap. Si (knkfi. Venom Qmt 
LBSURE 8 NOTBLa n Lunrtn CUml PMcoi 
G ift, Totartam Haapur. IDU (I) Granptan 
TV A MERCHANT BAIM8 (Q Scfmtart. Da HI 
V. Oil. IKTEGRATED (DSiglTrn. OTHSH 
muNCM. m eft. onn mvt a busks 
89 Bwtaa^ CMUatun. PRTNO, PAPER 6 
PACKO g) Sappt, Shaken M. P WO P B OYM 
Aryent. Ewan. RETAILERS, FOOD JTJ Low 
(Wnu RETAILDO, aonuu. n Bam. Fraidi 
Canmctkn, House of Frraor, SUPPORT BBWS 
H Qenaufe Paecrt Hsmi Whaina. irte. 
TRAH9POBT fl) CRT, WATER (I) Chaswr. 
AMBVCANB (1) Amort. 

NEW LOWS (33). 

OATS R OTHER fOOD INTEREST [0 BANKS 
A BHk Of Scadand BVqM kill Pit., Do. 9*pc 

pl sonM enru ntpc pf. nsmffiinORS m 
UMpae, nQMSMNO (i) hm g Smith, 
EXTRACTIVE MOB A AshM. Bractoo, RXJO 
MAHUF (U CamkMdhri Foods, HOUSEHOLD 
GOODS (11 IMMara. INVESTIIENT TRUSTS 
W Rnt SpfeWi WHMB, Du. Wlnfe 1987. 
Jahmon Fiy Zsto Prl Ji+itar Eud Zero Ct* Pt. 
OTHER EERV5 6 BU8HB fl) EsHttu. PHTNQ. 
PAPBI 6 PACKS (1) Sarto, PROPERTY A Brtt 
Land Spc CvBd, &rttn U En. EpactaBr 
Shopo, REDULER8, FOOD PJ Ntadki 6 
Peacock. RETALERS. QENERAL A PonttM, 

Upkm S Eouthan. SUPPORT 3 CRV 3 R) Ba*. 

ROD. TEXnLBS B APRAREL H Alttan. 
Mam (AX. Poatar (ft UraanL 

in the electricity sector of fur- 
ther share buy-backs by the 
“recs”, although the only sig- 
nificant individual deal was a 
trade at lm Eastern Electricity 
shares at 788%p. Eastern has 
already been active in the mar- 
ket to buy in its own shares, 
acquiring around 5 per cent of 
its shares last year. 


Other recs rumoured to be 
about to embark on buy-backs 
included Northern and South 
Wales. Northern was one of 
the best performers yesterday, 
the stock climbin g 14 to 824p. 
South Wales rose 9 to 796p. 

Oil shares put on a good 
showing in spite or the end of 
the strike by Nigerian oil work- 
ers. BP led the sector, racing 
ahead to a record 422p, albeit 
to thin turnover of 4m, as mar- 
ketmakers spoke of US buying 
and a chart breakout Traders 
were picking up stock ahead of 
a presentation to analysts in 
London on Thursday week by 
the bead of the group's explo- 
ration division- BP recently 
anno unced a substantial new 
gas discovery in Colombia and 
the market is expecting more 
good news from that region. 

Shell, which reports its 
interim dividend the same day 
as the BP presentation, rose SVi 
to 758p. 

Bank shares remained 
among the market's best per- 
formers, with institutional 
buyers contin uing to chase the 
sector. TSB reached its highest 
level for six months, cloring a 
further 5% up at 233p an turn- 
over of 4.7m, still boosted by 
last week’s Hoare Govett buy 
note and also by hints of possi- 
ble takeover activity. 

Fund management groups 
kept up their recent good form, 
with Mercury Asset Manage- 
ment appreciating 17 to 670p. 

The aerospace sector was an 
oasis of calm as most analysts 
left their desks to attend the 
first day of the Famborough 
Air Show. News that Airbus 
was to take over the European 


military transporter project 
came as no surprise and Brit- 
ish Aerospace, one of the four 
Airbus partners, was unmoved 
at 513p. 

Positive comments from Sie- 
ve's chief executive Mr Allen 
Yurko at the company's 
annua] meeting helped to take 
the shares up 5 to 595p. The 
market had been expecting the 
good news - on Friday the 
stock bounced 18 to 590p - but 
was particularly pleased with 
news of the contracts for Fox- 
boro, the US industrial con- 
trols group, which showed it 
gaining market share. 

Disappointing figures from 
Suter, whose interim profits 
dropped to £12m from £29, 6m 
previously, cut ll from the 
s hare p rice to 198p. 

BTR added 8*-^ at 392p ahead 
of results due on Thursday. 
FQemwort Benson reiterated its 
positive stance. 

Paper group Bunzl improved 
7 to 173p following top-of-the- 
range half-year profits of 
£32. 8m. Many analysts 
responded to the confident 
statement and strengthening 
margins by edging up forecasts 
for the frill year above £68dl 
Hoare Govett went to £68.5m 
and Panmure Gordon to £73m. 

Elsewhere in the sector. 
Bo water, which reports today, 
moved forward 6 to 473p. The 
group is expected to produce 
profits of around £l 02 m. 

MARKET REPO R T ERS : 

Pater John, 

Clare Gascoigne, 

Steve Thompson. 

M Other statistics. Page 22 


LONDON EQUITIES 


PS» 

lm Mi 

pan 

P A 0 

flSTS) 

Pfthgtai 

n»i 

PfudMH 

P336 ) 

RTZ 

(-885) 


UFFE EQUITY OPTIONS 


— CMa Pun — 

OAon Oct Jra Apr Ofl -Ira Apr 

flAMim 589 37 - - B - - 

r*12) 638 12 - - 34M - - 

Aig)6 280 25% 32 38 B 13 1714 

C2B7 ) 300 13 21 28 15 23M Z7H 

ASM BO 7 19 11 214 4 5H 

f«> TO15B7H3H11 

Uttqi 380 31 4D14 51 7)4 18 22 
r«S ) 420 14 am X 22 31 3814 

UlUmA 420 3814 49)4 07 B» 14M 20)4 
P440 ) 460 15)4 20 3414 24 32)4 39 

BOW 800 58)4 62)4 73 3 B 1S4 

fWa } 550 18H 30H 44H 18H 29)4 38 

8P 420 A 29 37 14 22 27K 

r«1 ) 460 6 13 20 42 47 51 

BUM SM 1» 9 13)4 IB 854 11 13H 

nm) 180 2)4 B 10 21*4 23H 25)4 

BUI 65D 42 51*89* B 22 34 

(•578 ) 600 14)4 M 34 32)4 50 60 

Oft S Mt 420 « 50 6814 5H 15 20 

[-458 ) 460 23 38)4 47)4 20)4 82H 38 

Qxvtadfc 500 XI 41H H 12 22 28 

raifl ) 550 8 18)4 80 38)4 50 58H 

Com (Mod 550 22 37)4 « 18 24 30 
(-S32 ) BOO 4)4 18 2B 52 5514 GB 

IQ 900 58)4 79V4 01 S 234 35)4 

(*840 ) 850 27 SB 62 29)4 44)4 SI 

XhgMlir 500 35)4 50 81)4 12 20)4 25)4 
(•S2B ) 550 1014 2B 37 38H A 51)4 

Land Baev BOO 54 61 72 3 OH 13 

[■845 ) 050 17)4 SB 42 T8 S» 33 

Marta B S 420 1914 SB 3BV4 0 1714 21)4 
r«ZS) 460 *14 12)4 Zl 34*4 40+4 44 
MaMWt 500 23)4 48 45)4 18 2B 38H 
{•SOI ] 550 0192(14535070 

Sataartay 420 46 54 B4 5M 14 18)4 
r<S8 ) 400 18 30)4 41 18 30)4 38 

SM Tana. 750 21 38 48 20 2BM 41 » 
(-758 ) BOO 5 17M 38 58 63 7314 
Gtanfecun 22D It 16 21 BH 13 17 
<*220 ) 240 3)4 714 12)4 23 2B 2BH 


OpOoa 

Bnl Met 
P447 ) 
Ladbnks 
PM) 

IM BtaMc 
rw j 
Opflon 


BO 6)4 11)4 14 4)4 B 11 
100 3 8)4 B 11)4 14)4 17 

1150 41)4 83 78H 24)4 41)4 57 
1200 18 ttta MM 54h 58H 85)4 
800 45 81)4 74 IBM 25)4 43 
88010)4 35)4 48)4 44 SV*4 66 
Mw FBi May X»r ftb *Mf 

420 40K 47)4 504 9 17)4 2214 

480 17 25 34 27)4 87 42J4 
100 13 1«4 22 OM 1314 17 
in 9 11 14 84 2BM n 
330 18 24 28H17M22K 31 
3B0 S14 1S41SV4 3BM 42 B) 
8»p Pbc Mar 8(9 08C Itaf 
140 14 17 IBM 2 BH B 

160 2)4 8M TOM 12 Ifl 20M 


Opteo Boa Fab May Mar F* Hay 

Brit Aon 500 39 E4M 64M 2BM 3BM 40 

(*512 ] 550 KM 31 43M 58 65M 74 

BAT Ms 420 44 » BOM OM 13 22 

(+453) 460 N 31 3714 2BM 30h 42M 

BTR 390 KM 25 2BM IBM 23M 29H 

(*391 J 420 B12K17M38M4248 

MTdbcan 380 17H 22K 30K 14H 23K 2SK 
P301 ) 420 SM U» 17ft » 43 44 

cadtuysa 4m a43M «iim ib»m 

r«ao ) 5m io aim 32 3B45m 

ErttamBac 750 70 ISM n 23 32M 30H 
P7»| BOO «1 SI 73 4*34 6562M 

Ettm 460 99 WH 67 8 14 21 

P88 1 snwft 9Mk a B 41 

GB 290 27 30 38 5 B 11 

raw ) 300 14M 18M 2*M 1W 17 19)4 


raw) 

OpBon 

BAA 

raw > 

IWnMr 

rtwj 
Dpton 
Abbw IW 

r««j 


) 

BW Ckth 

m«) 

MU Gas 
(*301 I 


nm 

Larrtn 

P89) 

ml Pwar 

rs«) 

Scot Robot 

rw ) 

Saw 
P21 ) 
Fort 
[-238 1 
Tarmac 

nei 

Thom EM 

P014) 

TSB 

rz»» 

Town 

P2S8) 


— cm Pm — 

Hm Fra my Mar Fab m* 

240 21 24M Z7M 4H 8 12 
260 SM 13M 17 13W 18 22 
154 12 - - SM - - 

in 4 7M 11 29 31 32 

1B0 22V4 29 29 5 9 1ZM 

200 10 1518)4 TO IBM 23 

B50 42M 5BB7M22h33M 47 
700 18 34 44H 52 82 7414 
180 204 28)4 31 4 7 9M 

200 12 IBM IBM 12M IBM 19 
330 18M2BM 31 14 18M28K 
360 7 13M 17M 33 37 44M 

B50 5BM 78T4 9BM 22 33M ASM 
BOO 2BM 52 U 47 5BM 89 
HO 80 44 S2 23M30M A 
600 10 23 3DM STM 01M 74M 
280 31 OT443M BM 13M IBM 
300 IBM 28U 3SU IB 22H 28M 
240 21 Z7M31M 7M 12 18 
2E0WM 17 21-17M21M U 
200 ISM IS ZB 11M ISM 18 
217 6 IT - 22 2SM- 

35( 23M - - BM - - 

334 BM - - 27 - - 

Oct Jm Apr Oct Jan Apr 
500 T8M27M 37 14M 21 28 
52S 8 W25M30M 36 40 

500 48 53 81 SM 17M IS 
550 16 28 34 25M 40 43 

Sep Bee War Sap Dec War 

420 15M 2B 39 B 17 27 
<80 2M 12 20M 37 41M 50 
30 3 414 B 1*4 3 4 

35 1 ZM 3M 4M BM 7M 

550 49 65 7B 2 11 IB 

Bn 14 34 45M 17 31 41 
300 23 MM 39 3M 11M 17 
330 5 W M 19M 27 33 

300 B IB A 7 17)4 19 
330 IM B 10 30M39M40H 
200 tlH 2BM24M SDK IB 
220 3 11H 15 18M 23 28 

in B 13 IBM 5M 11 13 
200 2 5 10M 20M 204 26 

130 IBM 17M20M 2M B 9 
MO 4 T2 IBM 6M 11 14*4 
500 28M 41 S2M 7 21 24M 
no 4 18 SIM 38 48)4 S 
390 24M 38M44M 5 15 IB 

420 8 23H 3BM 20M 28 33M 
120 B B « 3M 7 9 
130 IM 4H 7 11 13*4 15K 
220 21M 2B 31 2 BH 11 

240 7 14M 2DK B 15M T0M 


RISES AND FALLS YESTERDAY 

BiWah Fvmcte 

CXherFfctod hfloraai 

Mineral Extraction 

General Menutetuvre 

Consumer Goode 

Smvicee 

UtflUea 

Rnenciata 

lrwe tm erd Trusts 

Others 

Totals 

Dots brawl on thon c en +ra ilra Wed on da London a»e Banrin. 


1 

SS 

14 

0 

5 

TO 

45 

75 

78 

134 

123 

387 

32 

40 

115 

115 

83 

304 

20 

14 

11 

67 

100 

201 

60 

121 

296 

25 

SB 

26 

489 

674 

1442 


TRADITIONAL OPTIONS 

First Dealings August 22 Expby 


test Dealngs 


Septembers Setdement 


November 24 
Decembers 


CaBK Wrai c e Rae, Bk Ireland, Bluebird Ton John Mansfield, Retflim. Puts: Bk 
Mend. Pus A Cate; Abbey NefionaL 


LONDON RECENT ISSUES: EQUITIES 

Isiue Amt MW. dora 

price paid cap 1994 price AM DA>. 

p up (Etnj Ugh Leer Stock p +/- drt, cov. 

- F.P. S3 100 BZ fcAnmtascan 96 - 

- FJ>. 20L1 89 80 Sellle G Shn UMs 80-1 - - 

100 F JP. 19.4 102 100 Beacon tav Tnt 102 - - 

- FJ>. 1.70 48 <3 Da Worrtvfls 47 - - 

165 FP. 74.1 173 16S Chanberiefci Ph. 166 W73 1.0 

- F.P. 1U4 1*a 1 Conn Foods Wrt* 1 -lj - - 


120 

F.P. 

125 

133 

IIS Copyright Prom. 

125 

uNl i) 

2S 

IjO 

44+6 

- 

FA 

as? 

94 

01 WVESCO Jpn Dtoc 

92 

- 

ra 

ra 

- 

- 

FJ>. 

3J3 

50 

42 Do. Wanarta 

47*2 J 2 

- 

■ 

- 

- 

- 

FJ>. 

— 

77 

03 JF Fl Japan Wrta 

65 

- 

fe 

- 

- 

- 

FJ>. 

21.7 

52 

35 ^Magnum Power 

52 

- 

- 

- 

• 

23 

F.P. 

108 

31 

29 Ortrta 

20 

- 

- 

ra 

- 

- 

FJ». 

on 

17 

5*2 Da Wenents 

17 

ra 

- 

- 

- 

- 

FJ>. 

126 

40 

99 PebuceOc 

40 

- 

- 

- 

- 

150 

FJ>. 

181.1 

182 

157 Pfia- Property kn 

1B0 

LN3.7 

- 

2.9 

- 

ra 

FP. 

AM 

44 

36 Suter WAts B9fl*4 

3S -3 

ra 

- 

- 

ra 

100 

FP. 

381 

105 

97 TR Euro Qth Ptg 

105 

- 

- 

ra 

- 

- 

FP. 

240 

35 

29 Tope Eats Wra 

30 

- 

- 

- 

- 


RIGHTS OFFERS 

Issue Amount Latest 
price part Ranun. 1894 

p up data High Low Stock 

32 M 3/10 1*2pm *zpm Ra^an Props 


Closing +or- 

price 

P 


FINANCIAL TIMES EQUITY INDICES 

Sep 5 Sep 2 Sep 1 Aug 31 Aug 30 Yr ago 'High -Low 

Ortfirvary Share 25125 2S0&2 2500.4 2S3&0 2539J 20908 27136 22400 


m 

a 

IB 

19 5M 

13 

18 

OrtL eflv. yMd 

4JT7 

4.08 

4X17 

4.03 

4.02 

335 

+46 

043 

180 

2 

7M 

12 202BH2BH 

Earn. yld. % tuU 

565 

5.B7 

588 

5JS0 

5.78 

4.55 

SJK5 

9ta 

ion 

S4BGM 

n ISM 

34 

52 

P/E ratio net 

18.28 

1824 

18.27 

18.44 

IB. 48 

28.07 

33.43 

17P3 

1050 

11 

40 

»45H 

62 

78 

P/E ratio nB 

1888 

10^4 

10.87 

19.05 

10.09 

2S52 

3080 

18.61 


220 17 2SH 29 2M 7M 13 
240 EH 14 17M 11* T7 23M 
220 20 27 30K 2 5M 10M 

240 SUM 10 BM 15 « 
850 E8MM8BM G 21 32 
700 23M 51 » 22M 41M 53M 
Od Jm Apr Pet Jan Apr 

500 «3H 58 58 21 35 4SM 
660 IBM 38 47 51 G3 74 

700 n 93 MO 18 3SM 58 
7S038MBH4 85 39H 5BM 82*4 
500 a <2 53M 14 26 32 

512 19 - - 21 - - 

lira Fab ^ her fn My 

1U14H1IH 22 9 ISM 17 
200 8M18M 14 23 » 20M 

Martov price. Pnrduon (oh n 
*na cflv priera. 


“far 1994. Onvnry Shn Index atace caraCrtkin; Mph 27138 2/02/94; low 404 2tV6.'40 

FT Ordiwy Stan Mb t» dda 1/7/31 
Or Ufa iay 8h«« hourly etangea 

Open QlOO IOuOO 11JX) 1ZOO 13JP 14J0 IMP 18J0 Wgh Law 
2496.2 24S5J5 2499.0 250&9 2506.1 25104 2510.0 2501.8 2511.3 2512^ 2492.5 


RaCEflfii 700 n S3 t 

(743 ) 7S0 38V4 BBH 

RHI05 5m a 42 S 

(508) 512 18 - 

OpttW Mae Ftb ■ 

F*0fc-ftWI 180 14H 18H 

HM) 200 BMW* 

* _ UnO bW ag racaity prtco. P r 
harad on dMM wr prira> 
Septortfaer 5. Teal centra 

10481 PUK 5JOT 



Sep 5 

Sep 2 

Sep 1 

Aug 31 

Aug 30 

Yr ago 

SEAQ bargains 

29.703 

28350 

29323 

31.643 

35£20 

20285 

Equity turnover (&n)t 

- 

1493.0 

16500 

1627J 

12108 

011.4 

Equity bnrgatrwf 

- 

32,836 

34.122 

35XC6 

38,374 

3037S 

Shares traded (mOT 

- 

5407 

667 P 

583J 

4602 

402.0 

tE+cLufeg UTOB-martm butaioas and owneea unovar. 





FT GOLD MINES INDEX 


. Sep 4Ldq ta) b| Hr (mil S««k 
• 2 ae tty 1 81 m 0015 Wgh IM 

Bold IHrae ledex (38) 2I3BLH *1 3 2D9&2B 2DBU7 181179 £00 ZSBMB 1S22BB 

mevcw 3303.73 +2S 322224 3102G6 2287JB 4.13 S440J0 1B02Z3 

AetMntan 271722 +45 253090 2758.41 2153.56 lJ3 301339 163118 

Horth AawtoZ (12} ITUUM +)3 167620 185352 1835.19 475 KB8JB5 13S3JB 

CopyrUit Da FtaataU Tkna Unbad IBM. 

Figures h bracMb dm* lumber of e e nfl u nl rt Berta US DoBan. Bara VakMC lODCLOO 31/12/92- 
Pradeoeoaor Odd Mnra Indnc Gap 6 : 287. r ; day'll dangec +63 pokes Year ago: i772TPMrt 
Mvfcaa draed SWIM: Caned* fed USA doeed. 


BUSINESSES FORSAKE 


Appear in the RnandaJ Times 
on Tuesdays, Fridays and Saturdays. 

For further Information or to advertise in this 
section please contact 

Karl Loynton on +44 71 873 4780 
or 

Melanie MUes on +44 71 8733308 


FINANCIAL-TIMES 

(lK^i i Itnmiu eimdfVi 







FINANCIAL TIMES TUESDAY SEPTEMBER 6 1994 



LONDON SHARE SERVICE 


BroBBifePa 


♦ or 19 

-1 £ 
75 


-20 751 

191 

ft EMI. 
■A 199 
-% » 

re 


*9 m 

a 


33ft 29L4 
R 98 1 
aco 177 
1ft w 
» 12087 

ah M 
isa aou 
119 1892 
MUM 
136 570 
147Vj P94 

336 MU 
no mr 
33 iC 
45 4.19 


■kCortvAS 




7M 

ms 
876 
WO 

ao 

750 

so an 

139 497 


121 At 

122 1U 

3% 4 m 
u* 


*& ea\ 

Etio 

1 Z 344 

+10 Mi 

120 

*43% 

a 

"75 203 

-i an 


If °s 

-***'% 
104 

-2 422 

« 

-A £3Z>« 

-1 170 


263 937 
70 540 

100 31.1 

17* 977 
83 aw 
i ut 
181 Hi 
167 7100 
33 Ut 
ioe iu 
15 462 

229 1SU 
W 048 
1© 877 
8BHWJW 


U J. 


I-J. 


98 191 
32 - 

91 108 
42 612 
94 190 

14 158 Rf 
SO 14.7 POT 
17 196 05 
12 103 Far 

92 191 W 

99 127 hr 
92 153 ft- 
97 151 for 


£=JS 


5 K 


11 Mi 

51 200 

191 85J 

133 2U 

^"SS 

256 2382 
ft 243 
M 4 U 
395 11U 
60 T12L8 
80 187 


+ «r 1994 Mt W 

- U 01 kw Capa. M M 

MS 110 208 80 305 

- 138 108 357.4 50 - 

-4 228 ia MU 30 - 
-1 21*2 M 762 40 6 

128 lift 70S 30 127 

73 30 31.1 92 358 

KB 71 179 44 ' 

T7S 167 442 40 200 

VO 490 KO 52 115 

ft *WH E6\ 4870 90 730 

ft a aft mo - - 

ft 2ft 2854 - - 

Ill 136 710 50 191 

+1 81 84 «U 90 913 

198 105 419 £7 - 

*95 23 O - - 

36 13 401 - 

— 9 6 228 - 840 

238 143 US U U 

W SI* 007 - 

^ a *u- 

+1 74 43 20 - - 

20 IS 193 30 * 

171 120 «0 30 

SM 380 1044 10 491 

IS 103 2907 58 - 

-2 16ft 12ft 9235 10 694 

IS ah HI U 121 

1ft ft 092 - - 

-1 MB IS inn 47 205 

ft 78 55 311 43 394 

+1 22 14 130 98 GU 


SI 251 153.1 40 195 

*158 110 8BO 93 t 

230 155 1M 91 ml 

» 272 02 42 14.4 

Oft 196 1U 96 597 

an 403 on on 

38 a 411 - - 


1 % 


IS 8**! 
48 32 


117 3D 
-711 481 

108 Be 
I960 1663 

54 33 

1H >44 

im a 

247 181 

757 533 

W5 80 
C7 2B7 

'*% 
xa 230 
*203 128% 
310 Uo 
185 159 

11* 93 

*238 1B0 

E5412 £535, 

in a< 
in 147 
108 Sft 

*123% 109 

*3 38 

n 7ft 

124 101 
*380 23ft 
■222 157 

•MSI Eft 
156 T05 

57 54 

418 285 

107 8ft 
40 29 

entg E55U 

243 133 


m 


30 70 
40 155 HWKlf— JO 

20 45 Unti — fta 

11 - 
14 710 
12 mt 
10 * 


m 

CatfcM — JO 29528 

ffiSS 2 


-29ft 196 134 

— an 403 in 

— n a in 

283 101 IdS 

Sli 240 HU 

— 121 68 354 

-2 H4 271 494 

+1 an 220 MIS 

-4 173 95 180 

— a a mu 

— » 2 n tu 

+2 *442 SM 1749 

ft 48 a 141 

.= mE 2^ £ 

ft 2U 162% B57 
+3 no 238 2S8 
•♦4 *W 109 884 

45 39 122 

*25 ft 115 


im nan io iso 

240 «U 12 142 


H 355 20 287 

271 484 1.1 - 

20 1480 U 170 
95 141 2.4 194 

70 WO SO 184 
200 8U 20 293 
384 1740 40 196 

25 141 40 107 
89 350 15 139 

2ft 300 26 120 

60 793 20 - 

C>2 «47 20 292 

238 2S0 11 156 

109 W U - 


+or 1964 
Men - h* 

Til 


280 26 3140 

167 91 1718 

£ no - 

171 -Z780 

368 17 267.2 

ft - 1041 


+10 134 

481 

41 

22 

+t an 

an 

71 

m 


329 288 1095 

M 70 224 

51 37 S&S 

+7 021 488 l,m 


381 

ft 2 fft 


77 HO 92 216 
B1 492 44 949 

334 7X1 42 902 

33 234 22 206 


140 542 SO 102 
2W 410.1 10 270 

47 447 94 1U 

n in i7 - 
30 416 - - 

147 418 90 180 

39 482 20 - 

27 l&Q 90 - 

a 2810 11 ISO 

in 1820 U 372 

n im 17 - 


103 1 B 8 *g 7 ft - 1 X 1 

J E i “ " J - 

80 VSZ £fl% 7.1 049 - 

^ s a *- 

M7 IB IB - - - 

n — « c ui - ■ 

BO — «3 116 U 1022 220 

n 70 50 - - - 

128 ~ MB 113 HO 107-1 -K 

in ft toft 155*2 - - 

3 H — 41 32 *a 20 4 X 5 193 

10 10 g _ _ 

125 +1 US 115 40 1476 11 

1870 * +2 2058 1703 9220203 i 


20 436 113 JHNfti 


OM no 110 11 117 1 

JE 77 40 - 

44 M -6 438 401 Xfl 5042 11 

m 270 220 126 

CO 436 365 - 7199 3S 

Mft -1 «1 12 S U 1220 - 1 ! 

19 IS 145 M - 

B *7 -6 790 877 -7300 J 

in -2 IBB 150 - 1650 7 

197 719 173 94 1896 -J 


-s ± % & 


488 1,m 94 293 
25 707 - - 

230 848 95 - 

152 108 - - 

2BS 148 97 14J 


a — a is 928 i.i * 

— 2ft 15 408 16 • 

— *4B 41 807 94 193 

4M 87 « 114 U 21! 

171 178 13 2U 95 20.] 

471 S3* 431 4884 90 220 

n OB 77*2 1810 U 127 

MB IS 191 11 U mi 

IS m 99 SO IO 155 

582 — Sn 548 1742 94 110 

353 -I 401 329 7790 46 170 

M3 171 143 419 56 - 


*17 

81 




Wee ap lor. 

341*2 -a « 172 *. 

757 J -3 717 533 

7 *E»J -3 8 S 8 561 

HD -12 753 33 * 

HU +a Mt 63 E 

788 H -7 MB S 4 J 

STB +3 528 40 ft 

asM +14 an » 

SOU <21 32 S 

im -1 iso an 

S 8 » *1 «62 44 S 

407 a -1 477 321 

♦asm -2 4 M 33 ft 

444 +7 *403 2 SS 

711 v 9 Ml 501 

■Mt* -6 824 55 ! 

1 IH -9 «37 54 C 

770 * 4 >0 !S 


♦ or 1814 
- H* tor 

1 ”% 

— 193 163 

51 26 

— 73 48 

+1 *39 » 

% >3 

— 15ft 117% 

— 263 23S 

17 10 

*535 411 

-2 *380 30ft 

= 4 ^ 

283 a 

-1 87 45 

ft 3ft 24 
+1 500 JW 

+10 ns si 
202 154 

— 407 412 

— 130 94 

*W 54 

— no 305 

-1 590 473 

-1 C 3 C 

— WO 61 

+1 no 400 

— an 

— us ISO 
ft tm? '*£23 

■^5 137% 

— a a 

+3 •« 343 


vu 


91 

M 

1J 


13 

190 

2 a 

- 

90 

147 

16 

226 

11 

240 

ta 

- 

<0 

38$ 

36 

177 

28 

118 

16 

143 

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FINANCIAL TIMES 


TUESDAY SEPTEMBER 6 1994 


LONDON SHARE SERVICE 


H 

to 

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SERVICES 




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Mptad.nl 


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27 _ — 30 % 


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BANKS 

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A PRODUCTKM 


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880 

as -i 

11% _ 


IBM tat 
MM to CapEn 
83 58 558 

777 % 08 % 1*710 
m ta 4*7 
* 30 % 228 1182 

* 5 * 1 % 440 5.128 

fit 1 (C% 1471 
bo,; m 6843 
moll 3 S 7 3110 
230 173 % 80 X 0 
02 80 £00 
no 75 211 
179 MO 221 
« 320 0 U 




41% 18% «4 

87 B 1 X 2 

an <05 u*3 


£2*g EMil 4871 
m 156 6*7 


+1 132 

— 48 

+1 81 
-3% S49 

+ia vm 


IB 0 U 

a us 

25 2B4 
155 3BB 

no ua 


49 un 

m au 


147 

4BM +% 

93 

■ 8 % - 8 % 
B 7 M + 2 % 
ITM -1 


08 10 42.1 

209 12S mu 

MB 108 au 

*482 287% 101 
*199 1K% 4*1 

n a tu 

m 92 EU 
473 355% 1.TO 
"BM sn 3B1J 
*20 10 110 


r 4h 









































































































































































































































FINANCIAL TIMES TUESDAY SEPTEMBER, ft 1994 



|| SS3Sa3S3§32 






































































































































































































34 


CURRENCIES AND MONEY 


FINANCIAL TI MES TUESDAY SEPTEMBER 6 19»t 

MONEY MAR KET FUNDS 


MARKETS REPORT 


Swedish krona stumbles 


I POUND SPOT FORV 

vARO A 

GAINST 

' THE POUND 



1 

Sep 5 Daring 

mid-paint 

Change 
on duy 

BkVoffar 

spread 

Day’s MU 

higti kw 

One month 
fete KRA 

Throe monthe 
Rato KPA 

One year Bank ol 

fete WA Eng. Index 


Em* 


Fears of a weak minority 
government following elections 
on September 18 yesterday 
undermined the Swedish 
krona, writes iWEp Gaurith. 

The polls showed that the 
opposition Social Democrats 
(SPD) might fail to win an out- 
right majority, lessening the 
prospects of a yes vote in the 
November referendum to join 
the European Union. 

A poll in Finland, which 
votes in October on EU mem- 
bership, also showed a move 
towards an anti-EU vote. Both 
currencies weakened as a 
result Traders said there was 
evidence of small scale inter- 
vention from the Finnish cen- 
tral bank to support the cur- 
rency. 

The Swedish krona closed in 
London at SKr<L94, from 
SKr4.905 on Friday, against the 
D-Mark. 

Market activity was gener- 
ally very subdued with US 
markets closed for the labour 
day holiday. The dollar showed 
no sign of recovering from its 
three pfennig fall on Friday, 
trading in a very narrow range 
to close at DM1.5537 from 
DM1 .5602. Against the yen it 
finished at Y 99.25 from Y99.3S5. 

The counterpart of a weaker 
dollar was generalised D-Mark 
strength. It closed at L1,0U 
against the Italian lira from 
LI. 009. 

Sterling hart an unevent- 
ful day, with the trade 
weighted index finishing at 
7&9 from 783. 

■ Swedish markets were dis- 
turbed by two opinion polls 
which showed the Green and 
the Left parties making prog- 
ress at the SPD’s expense 
ahead of the election. 

Financial markets are con- 
cerned at whether a new gov- 
ernment will be able to cut the 
mushrooming debt/GDP ratio, 
estimated by Citibank to be 93 
per cent of GDP. The krona 
recently stabilised when the 
SDP released details of a pro- 
posed SKr61bn austerity pack- 
age, but its ability to imple- 
ment these measures would be 
hampered if it lacked an out- 
right majority. 

Traders are predicting that 
currency volatility is likely to 
continue until the election and 
the EU referendum, on Novem- 
ber 16. are out of the way. 


&wwRsb Krona."/: • 

Aoafcrst tee D-Mwk <SKr per DM) ~ 


*8 





a a 


. 6.1 


Jit .1894 Mg'. 
Soares: FT &aphito . ' 

■ Pond h lb» York 




SfeZ 

— Oaw — 

- Pm. doro 

Espot 

1J5475 

15453 

1 Brill 

15473 

15451 

Son 

1.5456 

15433 

1 >r 

15329 

15308 


■ Markets will be keeping an 
eye on the meeting today of 
the EU monetary committee, 
and a meeting later in the 
week of EU finance ministers, 
where the problem of countries 
with high deficits will be dfe- 


Mr Jeremy Hawkins, senior 
economic advises- at the Bank 
of America, comments: "The 
meetings have refocused the 
market towards those curren- 
cies that- are weakened on the 
public finance front” The ten- 
dency, he said, has been 
towards selling the currencies 
of countries which combined 
high fiscal deficits with forth- 
coming elections (Sweden) or 
political instability (Italy). 

The outlook for sterling is, 
for different reasons, also 
affected by EU issues. With 
controversy having sprung up 
again about the possibility of a 
multi-speed Europe, traders are 
focusing an a keynote speech 
prime minis ter John Major will 
be giving later this week in the 
Netherlands. 

Mr Hawkins said the market 
wanted to hear Mr Major 
affirm that the UK belonged at 
the core of Europe. He said 
sterling would come under 
pressure if the prime minister 
was seen accepting second 
division status for the cur- 
rency. 

Also important for sterling 
will be the monthly monetary 
meeting tomorrow between the 
chancellor, Mr Kenneth Clarke, 


and the governor of the Bank 
of England, Mr Eddie George. 

Mr Mark Austin, treasury 
strategist at Midland Global 
Markets, said expectations of a 
change in policy were tow fol- 
lowing good inflation data, a 
fall in house prices and weak 
car sales recently. If rates were 
to rise, this would be a sur- 
prise to the market, which 
would probably lend support to 
sterling. If policy stayed on 
bold, said Mr Austin, sterling’s 
fete would be likely to remain 
in the tiantfe of th e dollar. 

■ The general expectation is 
that today's quarterly Tankan 
survey of business conditUms 
by the Bank of Japan will 
show that the Japanese econ- 
omy is in the early stages of 
recovery. What this will mean 
for the yen is less dear. Some 
analysts argue that a recover- 
ing economy will suck in more 
imports,- curb the trade and 
current account surpluses, 
causing the yen to weaken. 

Others warn tha* the trade 
surplus is unlikely to decrease 
before the end of the year, 
partly because of stronger than 
expected exports and firm 
overseas demand. Further, 
economists at New Japan Secu- 
rities in London argue that the 
combination of stimulatory fis- 
cal policy and high real Inter- 
est rates is the classic recipe 
for keeping a currency overval- 
ued. They predict the yen at 
Y97.50 against the dollar at the 
end of year. 

■ The Bank of Tfti gfanri pro- 
vided UK money markets with' 
£75m late assistance. Earlier it 
had provided £ll 0 m liquidity, 
at established rates, after fore- 
casting a £40Qm shortage. 

In Germany call money rates 
rose to 440/5 per cent from 
4.85/445 per cent With the 
repo rate fixed at 4.85 per cent 
for a further two weeks, after 
six weeks at this level already, 
traders said they were scaling 
back their expectations of 
when a rate cut could be expec- 
ted. 


AtaSria 

(SoN 

162225 

-0.1432 

159 - 261 

172769 102092 

109182 

03 

109083 

04 

- 

- 

1154 

Belgkm 

TO 

495008 

-0.1029 

451 - 766 

4SJS320 48.4860 

4ft 

08 

405750 

-Ol 

4825B9 

04 

1108 

Dermatic 

(DKr) 

B.4874 

-0.0389 

843 - 90S 

9.5118 9.4833 

04848 

-09 

05142 

-1.1 

9^5485 

-06 

1109 

FWand 

(FM) 

72W1 

+02318 

161 - 341 

72370 7.7770 

- 

- 

- 

- 

- 

- • 

842 

France 

TO 

82402 

-00242 

372 -431 

92481 82257 

8M38 

-OS 

82445 

-02 

02075 

04 

1103 

Germany 

TO 

2.4062 

-02048 

042- 081 

2.4105 £4016 

&4052 

as 

24025 

04 

22747 

■ 12 

1204 

Greece 

(DU 

365.727 

-2_928 

590-863 

387.191 383281 

- 

- 

- 

- 

- 

- 

- 

belend 

w 

1.0105 

+02019 

1 QQ- 110 

12122 12000 

1.0109 

-as 

12123 

-07 

una 

-07 

104 A 

taiy 

IU 

243121 

-122 

043 - 199 

2433.16 2«427 

243821 

-05 

245071 

-02 

251221 

03 

7SA 

Luxembourg 

TO 

riaseoa 

-0.1029 

451 -768 

492820 40.4060 

400250 

08 

405758 

-0.1 

482559 

04 

.1182 

NMhertenda 

(H) 

2JH6S7 

-0-0054 

978- 995 

2.7020 £8954 

£6909 

-ai 

2X5969- 

04 

2584 

12 

1209 

Norway 

(NKr) 

105502 

-021 SO 

529 - 584 

106057 105440 

1CL5S3Z 

02 

105637 

-03 

106497 

0.1 

86 A 

Portugal 

m 

245-67 

-1.624 

450 - 084 

245.916 245^61 

247287 

-OS 

250477 

-OO 

- 

- 

- 

Spfel 

(Pta) 

200.024 

-0.1 78 

814-133 

200286 198.737 

200484 

-06 

201280 

-AS 

204244 

-AO 

809 

Sweden 

(SKi) 

112 as» 

+02821 

749 - 903 

11^870 11JSZ8 

11J9041 

-22 

11J9S46 

SA 

1A1751 

-A6 

73 3 

Switzerland 

TO 

2J3218 

-02042 

211 - 225 

2X1267 20187 

2JQ04 

’ 08 

2.016 

1.1 

1JB38 

12 

1212 

UK 

B 

. 

ro 

- 

. 

- 

- 

fe 

- 

- 

- 

78.9 

Ecu 


12608 

-02021 

601-616 

12825 12592 

12615 

-07 

12021 

-04 

12618 

-Ol 

- 


sort 


- 0841157 


Argentina 

Brazil 


1.5483 +00038 453-458 
1.3770 +00083 780-780 


1.5481 1-5433 
1.3897 1.3689 


co» 

Mexico (New Peso) 02386 +00072 308-402 52408 52281 


USA 


(AS) 

(HKS) 

to 


(SR) 


1-5481 +00033 478-483 


+00132 926-846 
+00268 603-867 
+01035 508- 740 
+0103 542-746 
+00091 482 - 520 
+00129 630-681 
+00482 750-300 
+00124 048-071 
+0005 206-228 
+00048 287-329 
-00008 683 - 215 
+328 894 - 050 
+00057 237-600 
+00384 532 - 7 65 


24936 

71.9630 
405623 
150844 
08606 
25656 
407S2S 
08058 
2321 B 
05308 

7.0048 

124022 

nuwai 

306848 


25968 2.0854 
11.9882 11.8331 
406810 40*710 
150756 iszaoo 

3.8560 09405 
25704 20561 
41.0325 404650 
081 M 6.7847 
2.3253 03172 
5-5432 5-5182 
7jQ22B 09779 
124A51 1237.72 
40-8075 404848 
38.7330 306100 


AislraRa 
Hong Kong 
fairfa 
Japwi 
Malaysia 

Now Zealand (NZS) 

FNfippteee 
Saudi Arabia 
Sfcwwu 

S Africa (Com] (IQ 

S Africa (Fte.) (R) 

South Korea (Won) 

Tehran (13) 

ThsBand <BQ 

jeon rata* lor Sap 2. BttMlar spread* to tbs ftouad Spot tads W»w air ttm tot On* dadnfe pMcaa. r e w ard la ant net ancOy quoted to 8w mTOtat 
txa me fapfed by eumnt Mans ant- an**) Index rakutotad by aw Safe of Entfrod. Base wrong* 1*8 - tOBJOd. OBer and MkEnmo bi both this aid 
(lie Defer Spot ttfeiee derind from THE WMBEUTStS CUOSMB 8PCTT RATES. Sane wfero* m raWW by the F.T. 


2.1121 

04 

A1123 

Ol 

2.1121 

OO 

808 

12479 

02 

12481 

05 

12334 

09 

82.7 

22935 

OO 

22949 

-02 

2.1131 

-09 


112581 

04 

11258 

02 

11265 

OO 

- 

153234 

2 A 

Ifjffilft 

9.1 

147204 

32 

1892 

22096 

-12 

22773 

-1.8 

22898 

-12 


- 

- 

- 

• - 

- 

- 

- 


DOLLAR SPOT FORWARD AGAINST THE DOLLAR 


S»p 5 


Closing Change BkVaffiar 

mid-point on day spread 


Day's raid 

high low 


One month Three month* Ope year OP Morgan 
Rate WA Ma MPA Rate MPA 


Europe 

Austria 

Belgkm 

Danmark 

Finland 

Francs 

Germany 

Greece 


My 

LuxandMug 

Netherlands 

Norway 

Portugal 

Spdn 

Sweden 

Swttrariand 

UK 

Ecu 

SDRf 


(Sell) 

TO 

(DO) 

(FM? 

(TO 

(P) 

(DO 

ra 

<u 

TO 

m 

(NKr) 

(Pta) 

(SKi) 

TO 


109315 

32-0150 

6L12B8 

&0S46 

53230 

15S37 

238-250 

13320 

167050 

320150 

1.7433 

63180 

158330 

129310 

73758 

13061 

13481 

13278 

1.45164 


-0.116 290 - 340 
-0.136 100 - 200 
-0.037 27B-2S6 
+03088 488 - 588 
•0327 219-240 
-03066 533-540 
-A4 200 - 300 
+03004 315 -325 
-4A 025 - 075 
-0.135 100-200 
-0.0072 430-435 
-03247 180-200 
-139 580 - 680 
-038 160-280 
+03238 721 - 796 
- 4tm K* 058 - 063 
+00033 478-483 
+03045 273-283 


103560 103100 103315 03 103313 03 10.8586 07 

323800 313320 3234 -03 32366 -03 32.175 -03 

6.1351 -13 01581 -13 02338 -1.7 

53548 03 00828 -03 01248 -1,4 

53259 -07 53322 -07 02925 03 

13539 -02 1384 -0.1 13487 03 

23835 -13 237325 -1.7 240025 -13 

1331 08 1327 13 13085 1.7 

157130 158530 157536 -33 16883 -08 16413 -43 

323600 313320 3234 -03 32065 -03 32.175 -05 

1.7480 1.7392 1.7438 -02 1.7437 -Ol 1.7395 02 

618570 08075 83215 -04 0834 -09 8.761 13 

156350 158380 15938 -73 161356 -03 16833 -63 

129,470 128360 129315 -23 130145 -23 133.14 -33 

73834 73274 73854 -S3 7.7369 -3.1 73459 -33 

13054 06 13039 0.7 13943 O 8 

13479 02 13461 05 13334 09 

12269 09 12251 08 12174 08 


01474 01248 
53715 53283 
5JQ283 
13580 13501 
237,400 234760 
13371 13279 


13090 13030 
13510 13450 
12300 122S1 


Argentina (Peso) 

Brazil (Ffl) 

Canada (CS) 

Mexico (Now Pena) 

USA (S) 

PacMe/Mdde East/MHca 


09969 +00004 988-988 
08895 +00085 880-900 
13648 -00021 845 - 850 
33820 -00025 796-845 


09888 08884 - - - 

n gre o p flnpn - . - 

13688 13645 13654 -05 13671 -07 13803 -1.1 

33845 33790 3383 -04 33848 -03 33822 -03 


1044 

1000 

105.0 
783 

108.4 

107.1 
692 

709 

1063 

1057 

083 

054 

808 

793 

1083 

87.1 


833 


963 


S«5 £ S 

Hregay 165568 - 1(5777 166970 - 107370 

too 2086.® - 2B39JN 174660 - 175090 

NmK 64006 - 64617 62076 - 62962 

fund 354261 - 355029 226860 - 229360 

Husria 344490 - 346000 222590 - 2235JM 

UA£ 59774 - 56889 36715 - 33735 


Austrafla 

(AS 

12S24 

+0.0056 

519-528 

1.3545 12490 

12SZ7 

-02 

12534 

-03 

15607 

-05 

875 

Hong Kong 

|HK» 

7.7278 

+02007 

273-283 

7.7283 7.727Z 

7JZTB 

ao 

7.7283 

05 

7.7433 

-02 

- 

incSa 

m 

312700 

- 

875 - 72S 

312725 312875 

31255 

-32 

315 

-Afl 

- 

- 

- 

Japan 

(Y) 

992500 

-0145 

000 - 000 

992000 982000 

9926 

22 

985 

25 

98595 

25 

148.0 

Malaysia 


22520 

+02005 

515-525 

25540 25495 

25428 

42 

25316 

32 

2505 

-AI 

- 

Now Zealand 

frJZS) 

1.6S73 

+02048 

559 - 586 

12598 12537 

1.6583 

-07 

15601 

-07 

15854 

-05 

- 

PhOpfrines 

(Peso) 

203250 

-0225 

500 - 000 

285000 26.1500 

- 

- 

- 

- 

- 

- 

- 

Saudi Arabia 

(SPJ 

3.7504 

- 

902 - 508 

3.7508 3.7502 

3.7517 

-04 

3.7538 

-05 

3.7744 

-05 

- 

Singapore 

(SS) 

1.4898 

- 

993 - 003 

15003 14995 

1.4885 

1.1 

1.4966 

09 

1A8S8 

- 07 

- 

S Africa (Com.) 

(R) 

32728 

-0.0045 

720 - 735 

35835 35595 

35883 

-52 

18166 

-45 

3.0833 

-3.4 

- 

S Africa pn.) 

«F0 

42250 

-aoi 

150 - 350 

45350 45100 

45687 

-00 

45175 

-82 

- 

• 

- 

South Korea 

(Won) 

801.150 

+04 

100 - 200 

801500 801.100 

804.15 

-45 

80755 

-32 

82015 

-3.1 

- 

Taiwan 

Dt) 

28.1858 

-02522 

815-900 

28.1965 26.1815 

202068 

-08 

262458 

-09 

• 

. 

- 

Thafland 

(Bt) 

242765 

-02285 

730 - 800 

242850 242730 

25249 

-35 

25.1785 

-32 

2S.6565 

-A7 

- 


1SDH ram lor Sep 2- BkVoMer epieeris In Bw Defer Spot table ahow erty ttw taw Area daebnta plaoaa. Tu i «fed iwee'ere not flbact iy quoted to me nroriro* 
but ere bnptod by cupent Interest met. UK. infeed & ECU mm quoted ki US curency. 4P. Morgro nen+nd Mcm Sop 2. Baee awwaga iflWMOO 


CROSS RATES AND DERIVATIVES 


EXCHANGE CROSS RATES 

Sep a BFt DKr FTr DM 


K 


NKr 


Pta 


UKr SFr 


CS 


Belgium 


(BFt) 100 19.14 1633 4353 2.038 4905 5448 2131 4954 4033 2337 4380 2318 4284 3.123 3003 2344 


Oeranerit 

(DKr) 

5224 

10 

8.686 

2535 

1.065 

2562 

A845 

11.13 

258.8 

2105 

1252 

A131 

1554 

2227 

1532 

1815 

1329 

NattMriendi 

2.19072 

A146E6 

-050471 

-228 

558 

Hence 

TO 

6015 

1151 

10 

2519 

1226 

2960 

3275 

1252 

2975 

242.7 

14-42 

2.454 

1214 

2584 

1579 

186.4 

1530 

Germany 

154964 

151382 

-000301 

-154 

&10 

Germany 

TO 

2081 

3545 

3.426 

1 

0420 

1011 

1.122 

4291 

1021 

83.16 

4540 

0841 

0418 

0579 

0844 

63.87 

OS24 

Belgium 

402123 

39.4058 

-05874 

-AOI 

528 

Ireland 

(K) 

49.07 

9293 

8.158 

2281 

1 

2407 

A672 

1046 

243.1 

1985 

11.78 

2502 

0590 

2592 

1533 

15A1 

1249 

Ireland 

QrffteRon 

0803088 

+0505221 

-069 

338 

Italy 

(U 

2.039 

0390 

0339 

0099 

0042 

ioa 

am 

0434 

1010 

8227 

0489 

0583 

0541 

0087 

0564 

8318 

05S2 

nines 

659883 

855353 

-050968 

nog 

254 

Nwhartanda 

PJ 

1828 

A515 

3.053 

0891 

0374 

9007 

i 

3513 

9058 

74.10 

4402 

0749 

0371 

0763 

0574 

56.91 

0487 

Portugal 

192554 

195.472 

+0512 

136 

129 

Norway 

(NKr) 

4653 

8584 

7503 

2277 

0956 

2302 

2556 

10 

2325 

188.4 

1125 

1515 

0547 

2501 

1.468 

1455 

1.194 

Danmark 

7.43679 

755892 

-0.00648 

154 

150 

Portugal 

(Ea) 

2019 

3584 

3256 

0580 

0411 

9902 

1-09B 

4201 

ioa 

81.47 

4839 

0524 

0407 

0561 

0631 

6257 

0514 

Spate 

154250 

189.138 

+0578 

3.17 

000 

Spate 

(Pta) 

24,78 

4.744 

4.120 

1203 

0505 

1216 

1260 

5280 

1225 

IDO 

5540 

1511 

0500 

1.057 

0.774 

7650 

0631 







SwnkJwi 

(SKr) 

41.72 

7588 

8536 

2.024 

0560 

2046 

2272 

8589 

2065 

168-4 

10 

1.702 

0842 

1.779 

1503 

1293 

1561 

NON BM MEMBERS 





Swttzariand 

TO 

2451 

4.692 

4575 

1.189 

0500 

1202 

1235 

5223 

121.4 

9851 

5575 

1 

0405 

1545 

0766 

7556 

0824 

Greece 

284513 

290881 

-0384 

956 

-6.18 

UK 

« 

4956 

9.487 

8240 

2.405 

1510 

2431 

2899 

1056 

2455 

2000 

1158 

onoo 

1 

A113 

1548 

1535 

1281 

Italy 

1783.19 

1931.81 

+7.72 

7.72 

-422 

Canada 

(C*) 

23.45 

4.490 

3500 

1.138 

0478 

1150 

1277 

4598 

1182 

9455 

5522 

0957 

0473 

1 

0-733 

7239 

0597 

UK 

0788749 

0295869 

+0506955 

1.12 

253 


US 

Japan 

Ecu 

Y«n per 1306 


to 32 32 
(Y) 322.7 
3930 

Dmbh Kmner, Rmdi 


a 129 5323 

61.78 5335 

7323 6534 

r - 7k-iinrar^ i 

riBwe 


1354 

1538 

1307 


0.652 

8378 

0301 


1570 

15827 

1928 


1.744 

1737 

2.140 


0822 

68.75 

8374 


1583 

1586 

194.7 


1202 

1302 

1583 


tooner, and ftreiMi Krona per Ilk Brigimi ftme, Eicudn. Lka and Pweia per 


7.874 
7734 
0421 
ioa 


1308 

13.16 

1.603 


0848 

6310 

0793 


1385 

13.78 

1378 


1 

1038 

1328 


8832 

1000. 

1213 


0015 

8210 

1 


■ MURK HJTUWS 0MM) DM 125.000 par DM (Sep 2) 


(IMM) Yen 123 per Yen 100 (Sep 2) 



Open 

Sett price 

Change 

Hgh 

LOW 

Edwl 

Open M. 


Open 

Sett price 

Change 

Hgh 

Low 

Eat. vol 

□pen bit. 

Sep 

03354 

08428 

+00060 

08434 

08310 

31380 

98.406 

Sep 

15044 

15101 

+05058 

15102 

09988 

15,106 

58,048 

Dm 

06345 

03427 

+05080 

06435 

03312 


17350 

Dec 

15093 

15168 

+0.0056 

15170 

15050 

943 

11524 

Mar 

- 

08434 

+0.0079 

08438 

03424 

ao 

2389 

Mar 

15195 

15241 

+0.0057 

1523S 

151 95 

18 

1,781 


EMS EUROPEAN CURRENCY UNIT RATES 

8ep 5 Ecu can. Rale Change % W-fram % spread Dlv. 

rates agrfnstEcu on day can, raio v weakest bid. 


15 

6 

-2 

-9 

-11 

-22 


Ewr oroBtaiaaw ear by (ha B mp— » Cnito ria n. Ctaiwiota me fa dewnfey retire rowyth. 
P eu wug* ch a n gse are lor toe ■ postere drop dentaee a we currocy. Ptra ywMi dw ma 
ratio bMwanbKnpreadrtfaapwcantag"igfaitaicabwire mi toe actato mart— mid EBuoanBtoniaa 
tara cwim^r. aid me nro*man panmtM pemnage doriadoa ef me cwiancyia marine ifee Don Re 
EcvcenM rote. 

(17AVBS9 ®wteg end k**m Ua nnpandad tan B*t Acbntraent catattatad by the Rendd Times. 
■ PH LAD U PMAW Vt OPHOR9 231350 (cents par pound) (Sap q 


hi CM MCr 


Money Market 
Trust Funds 


Coe»*Co 

WWIaMMavB 


DM 


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Vl+jDWl 


mt cm Me 


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OA 

ears 

AM 

15D 

ife 

US 

are 

IDO 

+jM 

+ 80 

un 

+M 

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ua 



Money Market 
Bank Accounts 


RaMax BMg Sac Ann Heearee On«N Abb 


0+ 

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, j Group 

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tsajne*- 1 


SSSSSSBSrr 

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m 

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caeoi-ctouna 

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I 4071 



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Bm* of bated MM taterest Omta 

9S-WMgna.ahatsAj igl , «™ 


gesas=is?. iSldPs 


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EaftaOHrMCDOO+.l in 

C1DAOO+ 1 450 


071 70S MX) 

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$3 


MafenwHaBklgSQC- 



Barcian Print 

MPnfaaiMa 

ziMD-ezimm 



HJLCJL 

UI-3S48SB 
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M11HT te 

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Mur fee rwro bail 



c7w«4chi boMBnkjje 

m in unti— Tfaima mi_ ihhfedr 


MOO 288 

1670 J.n# 

17S0 UU 
UK 2m 
4575 


wnciooan+. 
lymnTBSM— 

UnMDaaWnTmtUd 
roBmBJ.Heii.BM our 


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urn 

sera 

UU 

4+47 


081-4478438 


Orri s i dfe p Baa> HroJfeMrihn Jtar 



mooo- — u_ 
S10M»-C4B«e. 
W*»-es.Haoro 


&2S a*4 amiahM 

450 338 4K «-*» 

*w are | ra m 

300 329 I 30J I B-UBl 

2JD 1 Sjels-Mtl 
325 2+4 3JB a-MK 

235 168 I 22Bls-ilK 


475 368 1 454 1 0»r 

MM M Bnk m (toonriV HtO 

19Mraro«MlMAIflH»*1Hm , 1»1 -738 00*4 
nOJWWMiraroW- 478 BJ» I82 W* 

nturo-uawnfea- f 7 Jd &es r« s-raa 

Q3000-I r*e™_.l 723 5+4 I -I Vue* 

J.Ha»ySl*rad*WMR&CDtM 

UO CMamkiB.limn SOVeOK 071-3829000 

tea.. - 3878 26 i I an u» 

HMhOrotfeew-—) 4125 • 308 1 3 18 1 Mm 

Wnhro 1M M#l htaatt Cheqee Ace 

It* Monqafee.l'OMadaR.I ISE , 07872(4141 

nagooi. — 4js 35 a 4M » 

S4000-014BBB 4S0 138 45B Or 

EljOW-eU». .1 4(5 in I 452 1 00 


C2BUOO+ 

BUMM24UM... 
g1300B-H3Mfc — . .1 
esm+niww^ — I 


405 208 410 

300 233 ( 307 

738 208 J 277 

lit 135 I 232 

MHHIMOMBZtBIS 



■ 9WIM WWMHIlVHBt (IMM) Sft 125300 par SFr (Sap 2} 


HmiWM(BytM)C823WperEgep2) 


S«p 

07556 

07662 

+00004 

07666 

07603 

16346 

36.189 

Sep 

13462 

13488 

+03010 

13500 

13362 

16379 

34,183 

Dec 

07571 

07569 

+05084 

07680 

07518 

887 

6384 

Dee 

13390 

13438 

+05010 

13460 

13340 

1.334 

2323 

Mar 

* 

07886 

+0.0092 

07870 

- 

1 

58 

Mar 

- 

13408 

+05010 

13450 

13390 

21 

184 


Strike 

Price • 

Sep 

- CALLS - 
Oct 

Nov 

Sap 

— pins - 
Oct 

Nov 

1.450 

9-44 

932 

832 

- 

- 

flOB 

137S 

6-92 

836 

756 

- 

009 

025 

1300 

4-48 

4-71 

550 

021 

nan 

006 

1325 

224 

A77 

324 

150 

033 

138 

1380 

OBS 

131 

136 

259 

150 

231 

1378 

010 

039 

1.06 

031 

332 

4-04 


PnvmdvOvol, CMs 3139 Pul* 036B. Piw.diyla open ht, CaH 596.167 Pitutzrflse 



PubMied In aH etflUona of the Financial Timas worldwide. 


WORLD INTEREST RATES 


MONEY RATES 

September 5 Over 

Nflht 

One 

month 

Three 

mthe 

SU 

mthe 

One 

y«w 

Lamb. 

Intar. 

DkL 

rate 

Repo 

rale 

Belgium 

41b 

5ft 

5* 

5% 

6ft 

7,40 

430 

_ 

weak age 

4ft 

5ft 

SB 

58 

6ft 

730 

450 

_ 

France 

6ft 

5V6 

6ft 

SB 

6ft 

550 

- 

6.75 

weak ago 

5& 

5ft 

5ft 

58 

6ft 

550 

- 

6.76 

Gernuny 

4.90 

435 

455 

552 

933 

&00 

430 

4^5 

wreak ago 

435 

435 

435 

552 

533 

850 

430 

4JS& 

Ireland 

41 

5ft 

61 

68 

7ft 

- 

- 

02 5 

week ago 


6ft 

84 

a* 

7ft 

- 

— 

629 

Italy 

m 

84 

88 

Oft 

10ft 

— 

730 

BM 

week ago 

aft 

Sd 

88 

94 

10ft 

- 

7 30 

6.45 

M nHiiia Iren rife 
IfUUMWIxni 

43+ 

435 

551 

5.14 

548 

— 

82S 

_ 

weak ago 

434 

4.95 

458 

5.11 

632 

_ 

526 

_ 

Swttagartand 

3ft 

44 

4* 

4ft 

48 

0623 

350 

_ 

week ago 

3ft 

4d 

44 

4ft 

4fl 

8.625 

330 

_ 

us 

4ft 

4 B 

48 

5K 

5ft 

- 

430 

_ 

weak ago 

4U 

48 

41 

6ft 

5ft 

— 

4.00 

_ 

Japan 

2ft 

2ft 

2ft 

24 

28 

- 

1.7S 

- 

week ago 

2ft 

2ft 

2ft 

Zi 

28 

. - 

1.78 

- 

■ S UBOR FT London 








Interbank Fixing 

- 

4ft 

G 

5ft 

58 

- 

- 

_ 

week ago 

- 

4ft 

5 

54 

58 

- 

- 

- 

US Dolar CDs 

- 

4.86 

430 

657 

636 

_ 

_ 

_ 

wreak ago 

— 

4.65 

430 

5.06 

630 

_ 

_ 

_ 

SOR Linked Da 

- 

3ft 

3ft 

3ft 

4 

_ 

_ 

_ 

week ago 

- 

3M 

3A 

3ft 

4 

- 

- 

- 


GCU unfcad Da mid tatero 1 mOc 5*fc 5 mduc SB: 6 ouhr 8W; 1 yam: 615. 8 U80R bumbank Map 
mee n orind oaro far tlOm quoted to die marioM by far rfeennoe broke at Item each ■Mtag 
da*, the broke era: Bnkma Tnnt 8nk ol Tokyo. Betfeys rod Nedonm W aet an toet m . 

Ud atm wn aho<u far me doraafee Money Rum. US t COe rod SOR LMed Depothe fH. 

EURO CURRENCY INTEREST RATES 


Sepa Short 7 days One Hum Six One 

Hun noOca month months month! year 


Belgian Franc 

4U 


5 - 

4\ 

5*t 

-3 

ft 

-ft 

S\- 

ft 

ft 

-ft 

Danish Krona 

5*4 

-43i 

5A 

■5A 

6- 

5% 

ft 

-flJi 

7(« 

-7 

74 

■74 

D-Mant 

*a 

-4« 

4U 

■4S 

41S 

-4H 

G ■ 

4% 

ft 

-G 

&l'« 

-54 

CMch etrider 

5 - 

« 

5- 

43 

5- 

4fi 

si 

-4& 

ft- 

Si 

5& 

-ft 

French Franc 

5*1 

-S', 

■ 

■fii 

Slj 

■ft 

ft 

-ft 

sa- 

5H 

ft 

-ft 

FYmguaaa Eac. 

12l« 

-11% 

1«i 

- ID 

lUa 

- 11 

iis* 

-1ft 

11 V - 

1ft 

IlH 

- 114 

Spanish Peseta 

7A 

-7A 

7i ■ 

■7& 

7<ii 

-7i 

a - 

7\ 

ft- 

a 1 * 

9 - 

ft 

Sharing 

5^6 

-rt 

43- 

■4% 

Si 

■4fi 

ft 

-si 

8- 

ft 

6B 

-SU 

9*** Franc 

4 - 


45 

■ 9* 

4A 

"4i 

4A 

-4A 

ft- 

ft 

4fl 

-4ft 

Can. Dote 

5A 

! - 9 

5A 

-5 

6A 

-fiA 

ft 

- 5*2 

64- 

sa 

«il 

-OH 

US Dolar 

4H 

■ 4ft 

^2- 

■4H 

4% 

■ft 

G - 

4^ 

SA- 

SA 

SU 

-5ft 

Britan Lira 

9 ■ 

7*2 

BH 

-8 

si 

■BA 

a}] 

-au 

0»j- 

ft 

1ft 

-1ft 

Yen 

3A 

■24 

2A- 

■2J» 

2H 

■2A 

24 

-ZjB 

2«j- 

2,'. 


■2ft 

Alton SStog 

3% 

-33| 

3V 

■3* 

V. 

■4A 

ft 

-ft 

SA- 

SA 

6H 

-5ft 


Snot teoB am ms cfe far Aa US Dolar and Ybn adwa: two daya* mdea 


■ TWOB MQWTH mow FUIUBG9 (MATf) Paris intarteertc offered rata 



Open 

Sen price 

Change 

Hfoh 

Low 

Eat vol 

Open JnL 

Sap 

9431 

9430 

-053 

8422 

9428 

5.716 

43,173 

Dec 

8338 

6331 

-0,12 

9186 

9320 

18263 

47742 

Mar 

93.40 

93.43 

■0.13 

93.49 

83.41 

6A84 

ftlfOS 

Jun 

93.16 

93.12 

•013 

93.18 

63.11 

9 , am 

29202 


■ THWH1 MOWnt BUWOOOt3Atl (UFFQ~ Sim points Of 1CKW5 



Oprni 

Sen price 

Change 

H0h 

Low 

Ebl vet 

Open InL 

Sep 

9497 

9458 

•051 

94-97 

9457 

so 

2802 

Dee 

6422 

9421 

-052 

9422 

9422 

36 

1987 

Mar 

- 

9453 

■051 

- 

■ 

0 

1438 

dun 

- 

83.71 

-002 

- 

- 

0 

334 


■ HM MOUTH BtriiO— WK HITIIRP (UPFB* DMIm porTOi of 10066 



Open 

Sett price 

Change 

Hgh 

Low 

Eat vol 

Open bit 

Sep 

8458 

9457 

-002 

9459 

9454 

16722 

133671 

Dec 

94.80 

84.77 

-002 

9421 

94.75 

31478 

170861 

Mar 

94-42 

94^12 

-051 

9425 

9427 

28757 

165158 

Jun 

9456 

9455 

-004 

9459 

9452 

12134 

107997 


■ HBIil —CHIHI KUHQ3WA ITJATM WTTUBCg (UFFQ LI 000m ports d 100% 



Open 

Sett price 

Change 

Hflh 

LOW 

Est vol 

Open bit 

Sap 

9080 

9150 

+056 

9151 

9020 

2196 

21846 

Deo 

89.80 

8928 

-052 

8855 

89.73 

3290 

33704 

Mar 

8020 

8921 

-003 

8925 

89.19 

1788 

18030 

Jun 

88.73 

8859 

tO.OI 

8853 

88-78 

374 

13522 

■ TIP 

Bimmt 

euro sens 

to FRANC mum (UFF 5 SFrlm points ol 100 % 


Oprei 

Sett price 

Change 

High 

Lew 

Est vol 

Open bit 

Sap 

95.66 

9528 

+002 

95.70 

95.65 

1208 

17101 

Dec 

9656 

9358 

-051 

9550 

0026 

1372 

1 S 7 B 0 

Mar 

9650 

8459 

-053 

9553 

9458 

595 

11534 

Jun 

94.68 

94,09 

-054 

94.70 

9456 

20 

5963 

■ THR 

■■ ammi MU FUTUncs (UB=g Eeulm poteta of 10 tw 



Open 

Sea price 

Change 

Htfi 

Lew 

Eat uot 

Open InL 

Sep 

9359 

9452 

- 

9453 

9358 

341 

9278 

Dae 

93-47 

93-44 

-056 

33-47 

93.44 

924 

0940 

Mar 

93.10 

93.05 

-058 

83-10 

9004 

366 

4111 

Jun 

92.70 

BSL 84 

-059 

92.70 

9251 

200 

1715 

" LUFE fawai traded on AFT 







■ Tuna 

■ MONTH toUROBMJUUt PTO Sim points of 100 % (Sap 2 ] 



Open 

Sett price Chreige high 

Law 

EsL vol 

Open InL 

Sep 

9455 

9456 +051 

9459 

9454 - 

60049 

385.199 

Dec 

9421 

9421 

94.40 

9421 

72506 

481555 

Mar 

9454 

84.03 -051 

94,13 

9452 

62548 

381559 

■ U» 7 KEA 9 URrBBAIVTOIM(IM»flSlnipw 100 %(Sep 23 



sap 

9528 

9527 

95.42 

9627 

1,407 

12553 

Dec 

9428 

84.07 +OOI 

9455 

9428 

923 

10.140 

Mar 

9453 

9456 

94-63 

94-54 

489 

4.112 

AI Oprni Hunt rig*, me ter prevtaui <tay 





■ EUROKARK OPTMIIS (UFFQ DMIm points of 100 % 



Strike 







S«P 

ON NW 

Dm Sep 

Oct 

Now 

Dec 

Price 

9476 

nn 

on 014 

017 0 

059 

012 

015 

9680 

003 

003 006 

007 050 

026 

028 

030 

9808 

0 

051 nno 

003 028 

029 

060 

061 


Eat <CL toot. CTOs 1360 m 8696 . ftafeam (Myle open ML. Cafe 866018 noa 187605 


■ mBWaWsaWMIfCQPTIOItolUFFgSFrlni pobttacd 10095 









Price 

Sep 

Dec • 

Mar 

Sep 

Dee 

Mar 

9660 

018 

005 

on 

0 

027 

062 

0676 

002 

are 

006 

059 

046 

052 

9600 

0 

001 

are 

032 

073 

154 


Em «ct. bul Cafe 0 Pan a Pmutma dmfe opro h. Cfea 2906 hula i7GE 


UK INTEREST RATES 


LONDON MONEY RATES 

Sop 5 Owen- 7 days One Three Sbc One 

nlpht notice month montttg montha yonr 


Werberit Strrtng 8>a - 4lt 4{|-4H 5A-48 tt-5«S W - Bg - 6g 

Storing COa - - &J-B& 5H - 58 88 - Bfi 

Treasury Bfc - - d*k-4\ 6,1-5* 

Bank 0*8 - - 5-48 5^-6% ($[-58 

Load mdhartty deps. 5^-48 Sfi - 4fl 4» - 4» SH &i ^1-58 88-68 

Discount Mmkat daps 5^ - 45s 4^-4^ 


UK charing brak base lendbig rats 6*4 P* cart bom February 8, 1984 

Up tnl 1-3 58 96 


Oarta at Tax dap. (E10030C) 1>3 4 3\ 3* 3h 

CM rt Tec dap. undm eiOMOO M itxpc. Proaaltoedm fe— ilar cafe Ape- 
Am. tender <roe or dbcouit osseQpc. axso tad rare Sop. Bapon nonet. Make on dnr Ata si, 
1804 Aoaad Me far pmiud Sep 2ft 1804 as Oct 26, KXK. Sehemei DAB 8J2p& HaaeMe nto tor 
petod .Wy oa 1004 to Aag 31 . 1BB4, Schrome W 2 V SJSTSpc. Rnence Houoe fern Mi 6>2pe tram 
Sept. IBM 


■ TiinwwjimuimiiuFinwriflLjFFE) esoROoo pobwoonooH 



Open 

Sett price 

Change 

H0h 

Lew 

at voi 

□pen bit 

Sap 

9429 

9422 

+053 

9422 

9427 

8687 

87129 

Deo 

9320 

93-42 

+052 

3043 

9358 

17528 

163885 

Mar 

9258 

9A87 

>051 

9258 

925* 

7789 

. 71783 

•kii 

92.14 

92.13 

■053 

9A16 

82.11 

2036 

62918 


Traded on APT. At Open MM Iga ma far pnyriaoa day. 


■ mKWTTmrmiJHOomTio m tUFFE) gsogooppokiia 0 M 00 K 1 


Strike 

Price 

Sep 

— GALLS - 

Dec 

Mar 

Sep 

— PUTS - 

Dm 

Mar 

9425 

018 

004 

nna 

Oil 

087 

151 

9480 

054 

002 

002 

fl» 

1.10 

155 

9476 

0 

OOI 

001 

043 , 

124 

259 


wBtnifal in the survey arfH analyse deveioiinietita In tba Cable 
and Satellite broadcasting Industry. To receive further 
Infor ma tion, please contact: 

Alda Andrews Tel: +44(0) 71 873 3668 Rnc +44 (0) 873 30A2 

FT Surveys 

f COMPANY AWARD BADGES 



SetxJ your company lajarheal - Stick Pins - Cuff Links • Key Rings 

and bgo lor a free design -Tie Clips * Enamel Badges 


Manhattan-Windsor -00- 


Steward Sl, Bumingham B18 7AF. England. Fac 021-454 14S7 

CoBWdm* ta HJI. Government 


an. aeL to04 Cafe 12BB7 Pm SS&'PMftm cfayfa open fat, cafe 547741 Puts 500612 


BASE LENDING RATES 


% % 

Adam & Company — 525. DuroanL awl o 52E 

AMd Trust Berk. — _32S B ator Baric Urrifed- 625 

ABBvric 526 Hnrnidal& Gan Bank- 6 

•HemyAnabednr 5J2S OAsbenFfamtog ACo-525 

BaritelBKQda 525 Gktfaer* 525 

Banco BtsnWcaya- 525 OCUnnen Mahon 635 

Bar* of Cyprus 525 HaW ta* AS Zurich .523 

Bar* of Ireland 525 •HanrinaBark 525 

Sartcafkvfo 52B HerB8UeSGsnlnvakL525 

Bank at ScoUnd 525 MSanrad 526 

BBretoysBer* 525 a Home a Co 525 

MBkefMMEfltt—. 525 Honsfgang&Sfmjrai, 525 

aara*n94*y&Ool*[j52S ArienHo^OBm* 525 

aBMKNadartM... 0225 •U 90 poidJratorii5SrtK525 

OBm*NAl 525 UnydeBm* 525 

CbdfedlitBsofe 525 ■ Matfral flro* Ud.-^. 525 

The Go-oponriha Barit 825 . tfefendflafc 525 

CamniCo 5^5 •MouitBanMM 8 

Gmdk Lyon mb'. 526 Mrt/e3tn*iskr.„.._ 52S 

Cyprus Poputor Bar* _52S cFtoeBratm 525 


% 

■RariugheGuawriM 
OOipOtibn UmBBd la no 
longer Mhaiaed ae 

tbariringMufen. 8 • 
Haysi Bkd Scotland - 62G 
•Qnlh &VHkt» Secs . 525 

IBB ; 525 

•Uhbed 9c of KtiMfc 525 

IMyThSt Bank Fie— S2S 

W8 limn That 526 

WrittauvUMem 525 

Y vma HreBank 525 

• Members of London 
l (tv esurient Ban king 
























FINANCIAL TIMES 


TUESDAY SEPTEMBER 6 1994 


35 


WORLD STOCK MARKETS 


EUROPE 

MSISM (Sop 5/Scty 


Liz W Law n» 


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tatt 2.140 


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1.476 

'■IS 

633 

19H 

038 

481 

229 

1.168 

384 

706 

454- 

3900 


CradPI 

EA68R 

EVH 

sa 

Outer 

RaOBCH 

mIS 

VMIM 

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VMM' 

VHenOB 


"S S35 T7 » z-3 

-10 1,270 S7S 08 

^SjSs.e 8 ’-s 

SSSifflH 

-11 1948 845 13 
— ■ laOSD 895 2.1 
-*498 403 12 
"5 258 171 23 
-8 1.160 874 

-« « 3» ia 

-8 761 546 2,3 

-w «a «ova 

-2S 4340 3.411 13 


Lapna 



(Sep 5 / FrsJ 

-10 4AM 3.705 1.7 

— 8.880 ?J 10 n 
-40 &300 4,000 __ 
-30 43B0 3380 48 

— 1RB60 ISM ZB 
_ 36*83(748 23 

1 5.7 


5.100 

1.4S0 

Pta*u* ibjoo 

PHInn 10.450 
nrti 3 jjm 
R end 544 
5.130 
4W 

£250 

SGnAN 1275 
SMk« 14.679 
Sataac 1.820 
Seta 1B900 
Ttarf 1DJOT 
UCS 24,725 
UMi 2.685 


-50 2,850 2.105 1.2 

-aoismauso u 
-fin runs u^oo ?n 
4-102700 2.190 3 j4 

— 8700 5550 1 a 

-slS iS n 

♦SO BJOO 8,100 X£ 
-2 1,850 1 JOT 2.1 

— ftBOT 5.460 7 + 
-20 3.781 BJJTO 4.1 
*10 7J570 2,480 _ 
-70 4.WW 1820 4.4 
-70 4.470 3.850 4.7 
*34 1380 1 JOT 2£ 

-120 £100 1X00 511 
-130 l 5ia> BJWJ 1.8 
-180 S/V50 4.180 2_T 

-80 3.886 29*0 5.1 
-12D 8JOO B.OT0 1-8 
*20 7.9M) 0370 1.7 

— 8.400 6300 4J 
-30 1330 1350 83 

-.tMooidooc _ 

-17510775 0386 27 
*10 3300 2705 48 
+8 5B8 420 3J 
-100 6700 4340 4J 
-100 6390 4300 4.1 

— 2336 £125 5,1 

— 2336 2,105 4.9 
_ 16J00 3.150 4.4 
-fi 1376 1/482 BA 

*251736013,750 42 

— 11300 9,400 43 
-1752B.H022JOO 23 

-20 2300 2.440 43 


(SapS/Xi) 


208 

Ctatt 299 

Cntsn 5300 

(VS12A 122300 
Dntaeo 930 

DcnCMk 312 

Mt 160 

FIS B 42730 

GWurt 580 

ess iso 


LrbnB • 1350 
MOWS 285 
NvfMB SOB 
RMOB 545 
SqftM 523 
“ 530 


X 


364 

TopOan £00 
IMttaA 23830 


*23 780 565 22 _ 
-4 281 206 2.4 _ 

- 833 251 12 _ 

— 7300 5300 03 _ 
-13» OtMB (TOOTS CL4 __ 
♦1252 1,140 878 02 _ 

-8 427 30879 33 _ 
♦120329 151 33 _ 
-£SQ 815 307 23 _ 

- 643 448 2.1 __ 

*8 276 172 1.1 _ 

♦8 42S 330 23 _ 
_ 1.650 950 03 

— 305 

-378381 

♦10 737 500 03 
_ 815 505 09 
♦9 675 426 02 
-2 4SS " 

*1 35583 

♦36 1372 510 1.7 
-330 28720736 4J 


820 _ 709 500 SJ 

345 -13 902 051 23 

«J.7D -ASCOT® 377 3.1 
’?390 -5.101SJBHU0 — 
Mfi -21 13961360 09 
6^80 -50 0750 5480 07 

335 _1 3742HJ0 _ 

520 -« 634480.10 11 

237 -130 274 207. M 03 
13130 -.13850 8780 43 

,9*0 -10 1848 882 04 

14030 +130 MB) 130 63 
198 _ 260 T78 — 

35520 -30 62633920 5.1 
Ml -1590 639 360 53 
IP -70 *2-7u 234 141 3.1 
32220 -330 371 29250 73 
B46 -10 938 752 18 

W3 -12 1909 7B6 _ 
988 -10 1.150 80S 18 
SS4 +18 604 35110 _ 
209 -6.40 287 201 _ 

l 138 +180 157.40 11380 23 
600 -16 752 542 1/4 

_7W -an 945 BB1 18 
£SOT +2 SOTO 2860 18 
B68 -10 734 578 98 

1J« -591.7881809 £4 

43J30 +.4046880 337.10 £5 
, S4S -16 600 472 £3 
411.10 -e.ee 610 39110 83 
482 -JO 700 460 67 
2,130 +15 2.470 1,700 _. 

. ,52! -5 122 550 43 

* 2-°88 -24 2300 1.710 2.4 

342-12.10 529 332 — 
283 -5 377 244 4 3 

21W0 +49623760 ISlfl) Z2 
2-450 __ 3.120 £281 1.3 

' 18£40 -1AO 214 153 59 
3«H2 -43645)293.10 39 

150 JO -JO 23450 1SSJC 
37X10 -860 494 333 4 0 

<05 -2 650 <29.10 5-3 

476 —6 300 475 6-9 

283 -ZAO 307 221 5-2 
323 +8 336 240 23 

282 +JD 355240.10 46 


— fiao«irr{Sap5/[ta.) 

— *8 17390 -JD1S8J0 153 09 

— AOiM 642 -6.50 535 53 a ?-2 

— *W | 1.235 -5 1/446 1.110 1.1 

— «*H 2.440 -<fl 2J1 1 2JS0 OJ 

866.50 -8 69550 575 1J 

97B -rA 1.191 007 

. B80 +15 lies 707 09 

BASF 32360 -4.1034380 27B 26 
BOOMrtc 498 -1.50 SID 435 18 
OMflOI 39060 -260 485 34S 26 
flW, 373.10 -36D40480 33160 26 

gWWM 413 -0 53160 397 36 

wwar aor -12 02 s 639 i-S 

w iffl^i.S asts 

»TBll 386 -260 ’a 377 17 

ar -ns a 

M«4r 830 -860 904 680 1.0 

DOBSt 4SS -14 568 443 1/4 
MB* 25160 -860 20650 71 060 - 
Qsoek 71960 -128876008950 26 

DklWrk 17960 +60 190 132 2 J 
Don* 535 —5 507 478 26 

bgt* 329 -1 3S7 260 16 

348 U 


WVO IwW lit 


_ SH 



B65D -1011. 

11«S -31 St 
2,14# -110 Z' 

4/440 -1303.1 
_ Into 26650 —700 

— Totff 10.900 -iaa24jgS1ZOB 26 

— (Mccn 11630 16.WJ10J50 12 


(SepS/Ht) 


ABMAfflr SOM 
AEGON 9UUI 
NwW 47 JO 
4IC0M 218JD 

MMt 37/40d 
BosldlS 4160 
cm fin an 
OSM 145-20 
DczK>B 20030 

Bnr 17QM 

HMW 18.70 
FA0M1H 7460 



4360 
■BDpB 60L20M 
UM 8 B 8 JD 
KUI 50J9 
kwbt a ijo 

KPM 5460 

KPKOpR 4860 

Md 64.79 

W«C 8860 
Nufein aa noai 
OcOVGr 7660 

58 

ft*Gr 77 JO 
Ftobtco 120 

Ftefcco 52.50 
Ftaflnc 121 JO 
Mrera 85.20 
HDufca 19060 
StorMJ 47 

UniDp 202 

1MJ 197 30 
VnOOpfl 4F3Q4J 
WQDpfl 12130 


-60 73.70 56 46 

-60 11(150 WJO 36 
+J0 53.40 <260 _ 
-60 229 18760 36 
*60 47 JO 3560 34 
-.10 523760 ZB 

-60 77608260 — 
-6014ft60<IB6B 16 
-60 20817310 26 
+JSO19U0 145 16 
_ 251360 46 

_8S.40G8.1Q 4J 
♦ JD 10850 95 46 

-.10 5860 4460 26 
♦1 15750 123 _ 
-160 24461 BBSS 16 
-6033350 264 3J 
-AO 83 4860 56 

-1 93.50 8860 2.1 
-JO 45 34.70 26 
— 4D94JD 73.10 DJ 
+160 9860 74.70 22 
-60 ST JO 4060 26 
-AO & 42.10 as 
_ 55.10 4760 _ 
♦6067304360 11 
+60 8030 686011 
-J01K12D 72 2J 

-60 HQ4n 85 71 

+60 8050 0560 86 
-.10 53.30 40 06 

—160 8460 7T 16 
-AO 131 112 26 

-1 JO 68 5260 56 
—60 13540 1 14H1 2.6 
-6010050 8450 SJ 
-6021848 18828 46 
— 6060 4060 1J 
♦ JO 23817840 26 
-1 2031B450 1 6 

-.10 5050 4560 26 
-60 USED 101 JO 16 



-20 971 72? U 
♦3 190 14850 16 
«t Ml HOU 
+10 1-820 1.400 23 
-4 1/437 1663 20 

_ 175 123 

-10 1.738 1.429 45 
+20 5,840 3,700 _ 
_ as 185 05 
-8 1/640 1,001 _ 

+60 U640 1 1,125 0.4 

+8S 7J70 6.160 08 
-1OZ3O01JW 23 
-1 1655 710 13 
rl 227 148 12 
♦4 888 806 _ 
-1 870 842 _ 
_ 1.650 1/400 JB 
-4 1.100 B45 16 
-2 531 352 42 
-1 2E9 ITT 46 
♦2 015 584 _ 

-2 770 515 _ 
-4 BSS 795 _ 
+4 1603 1,058 27 
-fi 632 070 25 
-S161S 1618 15 


_ KMm BOB 

_ OOn 1620 
_ KMdN 835 
_ ram 1.190 
_ RobeSt 331 
_ lUnM 830 
- KoNBb 5.170 
_ Katana 2530 
_ Mnu 90S 
_ Kortaa 707 
_ Kows 8M 
kSm 720 
KraSaw 665 
_ NjoDO 452 


—4 970 820 08 _ .Staea. 

G+’SS’-SP “ - **** 

-15 877 8D4 
-10 1J80 1.130 
-1 »5 250 

_ ffiO 740 
2480 1.700 
-80 2780 2150 
-2 887 732 
-7 749 805 


+/- Hah U» 


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+, — SMM7 

— — ShEKh 

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.- _ fflOBQI 

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-4 787 SSI 

■a S SS “ r 

is , a , a z -gg* 

-JO 7J20 5680 

-4 655 are i.i ._ 

-16 889 780 _ _ 

-23 UBQ — 




= PAORC 

Z Japan {Sep 5 /Yen) 


_. TDK 


«u*6r 


4*« 


— KOBSTAT (Sep S/ Kronei) 


Oottif 
Dwiota 
»mFf 
IMIAf 
Kurt I 


Orkla 

ITbefA 

SaanW 


S3 -1 112 72 42 

156 -1 175 130 08 

1365 —.15 1960 11-50 _ 

174 -160 IBS 12S 1.1 

81 -1J0 114 

123-50 —360 148 

313 -6 396 

SO 11610 

255 -4 298 

197 -S 

224 -2 

139 -316450 

8460 -260 91 

02 -160 91 

77 _ 07 

10360 -1J0 
120 -160 
37 


cataoc 



1J60 

3270 

1JB0 

518 

398 

871 

700 

2670 

1.130 

2>70 

1^90 


(TctaC 588 
owes 543 
OaM 1600 
QtaftA 1.440 
DdCXa 1JG0 
I7cf*» 1.4M 


_ SPAB(Sep5/Pts.) 


2SZ 36 
586 07 


321 2.4 
300 _ 


RMAID(Sep5/H(a) 


-e eta 465 U 
273 +160 307 2S3 16 

WBL 727 -» 730 580 16 

KantaB 210 -7 345 190 36 

ttakem 1^ +36 16801.141 16 

MnP 621 +1 681 SB4 16 

(*«r 370 -2 440 343 Z7 

ItocKJ 1.004 -31699 K7 16 

weft* 35360 -63886020420 26 

Htamn 002 -0 169B 830 16 

Horten 217 +3 253 205 26 

flffl 298 -2 324 288 36 

Bid Wk 380 -4 433 353 Z1 

Kad&s 15160 +60 189 181 _ 

' “ 827 -6 «B 615K 

531 -7 558 451 26 

123 _ 18160 11516 _ 

NOCMIV 152 -160 179102JB3J 


BOW 


_ CEPSA 


OKU 

Omdra 

BraAg 










RB7 

+7 

nm 






Le*W 



flUT 

AmerA 


+1 104 1(060 18 



820 

on 

QM 

(Mar 



121 18 


UnoH 

401 



0*1A 


_ 105 

80 


umtri 




EncoR 

4760 

-1 4880 3080 13 


uapi 

HI 





♦1 233 

153 26 


■ ■■ 

432 





+ JO 1780 

931 


V .1,1 

331 


387 

KMka 

5880 +1 JO SOBO 

46 13 



MnnSBi 43760 

-16048860 


HdCan 

Ibwor 

KOp* 


_ 706 512 16 
145 -2 150 100 QJ 

las _ 2*7 152 1.7 

165 +5 260 152 1.7 

250 -7 2S8 200 06 

251 -9 260 100 06 

560 _ 566 387 05 

102 _ 107 89 _ 

65 -60 104 59 16 

6320 -160 102 54.10 16 

111 —2 1208460 06 

226 +3 244 173 26 

19 31 19 _. 

1260 _ 20.80 12 _ 

105 — 129 89 _ 


FRANCE (Sep 5 /Fro) 


MUQ 

AlCtal 

Axa 

EC 


Qfew 

Carina 

Cbraa 

QubMd 

CCF 

QfdnF 

QtyO 

QlocF 


Docksf 

Dtaus 

OF 


225JO -1J0 358 30380 _ 

857 -3 786 588 17 

748 -7.10 80A40 M8JB 28 
567 5 913 .941 4.0 

233 -2 330 217138 

1JWJ -T0 1.435 1.140 26 
23&7D *86028960 227 18 
497 -260 883 4B2 36 
Z27B _ 3,750 Z787 26 
632 -IS 787 501 26 

1,180 +7 1/480 1J1S7 4.1 

834 -5 1,166 801 46 _ 

178-70 -260 2208818900 96 _ 
168 — 160 21 3J0 16958 _ _ 
1128 -3B Z200 1.711 36 _ 
170 +6.40 206 13760 46 _ 
1.494 -81,3701.276 26 _ 

430 -ZSO 456 348 Z1 
20760 -4.6030060 2D1 2.1 _ 

934 -15 1J05 881 86 _ 

466 -18 888 415 3J _ 

40060 -7.10 480 SSI JO _ _ 
43030 -360 73743110119 _ 
5640 -00 6.180 GJOO £7 _ 

T9? -? 1602 rez 26 „ 

791 +13 830 BIO _ _ 

434-1260 476 301 16 _ 
950 -13 977 760 2.4 _ 

-8 740 515 3.1 — 

-10 740 BOB 2J _ 

-6 436 364 46 _ 


. . 387 ill 

itata 200 5 288 17550 46 

MMBBB 1875 -5 3617 2.B80 04 

PWA 257 -360 202 210 _ 
FMComm 505.20 +J0 530 504 36 
830 -5 950 890 06 

« 475 -66050150 418 2.1 

Jb»S 4^ SI5 
sss ;« 

"diBas 
iis 1 * SSJI 

-laio 78850 633 16 

+5 005 BIO 16 

_ 560 480 1.1 
34 
01 

-160 ! 400 317 26 
_ 415 347 26 

+2 SS 438 

407 -760 55* 

307 -Z 443 

1640 -ID 1673 

245 -3 27021888 16 


SSL 

3E£ 

tan 

tais 

TMncA 

Tifctn 

Tudor 

Ita Fin 

IMM 

Uruta 


Vtaefa 


5.430 

5.100 

3,000 

2650 

4/405 

14J40 

6610 

1616 

Z17S 

4J10 

10,170 

2600 

1290 


7600 

5630 

4/460 

10,160 

1675 

4630 

270 

540 

B5B 

3275 

1255 

1690 

584 

1600 

1/460 

2685 

2605 


-120 0280 5.190 22 
-180 5,700 4620 46 
*5 3633 £780 56 
-1 5 3^00 £41 5 82 
-5 4 435 3675 4.1 
—180 17200 14608 5.4 
-10 6J21 4.400 56 
-15 1635 700 202 
-25 3J80 2^10 3.1 
-20 5.110 3^00 24 
_ 11688 £400 2J 
-20 £715 1670 46 

1J75 1J2D 16 

♦50 3650 2/320 3J 
-ISO 8.100 5680 £6 
-17 1.100 BID 46 
-21 324 416 129 

-85 5.140 3610 36 
-10 1J10 846 7J 
_ 7/490 4600 £0 
-807630 4600 £0 
-120 £400 4650 2_2 
+2012600 9,710 16 
-35 £105 1.000 — 
-03 4600 3605 £6 
-5 333 102 _ 
-15 090 351 96 
-14 815 010 SJ 
-25 4650 2600 34 
-30 £186 1 ,695 36 
_ 1.435 960 16 
-13 789 675 7.7 
-10 2/400 1,300 134 
S 1710 1,150 5.1 
-ZO 3,120 2J80 £1 
-95 3680 £250 16 


-2016201600 _ _ 
+4 737 488 — _ 
-50 1J10 991 04 _ 
-701560 sre _ _ 
— TP 1 J70 881 _ _ 
_ 1690 1670 _ _ 
_ 744 aes 16 _ 
-701.700 940 _ _ 
-1 534 402 16 _ 
-180 £S)0 3.480 _ _ 
-20 56*0 4670 OB _ 
-201J5O163O _ _ 
-101JS0 167D _ _ 

! 811 590 1.1 _ 

I 1600 1640 _ ._ 
-9 322 410 06 _ 

-6 513 380 1J _ 
-9 879 650 _ 

+«seeas5__ 
-201690 1JSO 06 _ 
+1 801 416 _ _ 

-110 3640 £410 _ _ 
♦ 20 1 JOT 842 46 _ 

-12 718 <30 _ 

-10 1620 1630 _ ._ 
+40 3600 2600 _ 416 
-101.410 1620 16 _ 

-2 B11 315 _ 

-7 402 337 16 _ 
-27 997 841 _ — 
-10 1.440 1.040 04 _ 
-10 798 671 16 _ 
-30 2670 2670 _ _ 
-101630 1.130 _ _ 
_ £780 £470 _ 

_ 1660 1J10 _ _ 
—12 004 004 06 _ 
*9 896 788 _ — 
-5 625 410 _ _ 

-12 S9 97 

-(O 1670 1.420 _ _ 
♦20 1/490 1650 06 _ 
-30 2660 1.720 _ _ 
+20 1610 1,400 — _ 
♦22 1,020 SBO .— _ 
-10 1 JOT BOO _ _ 

-13 91 0 531 _ 

-8 570 415 — 

-io I270 sea _ _ 
-10 26201680 — — 
S77 345 _ __ 
—20 1680 979 _ 

-13 865 BH7 09 _ 
—30 1.120 BS1 _ _ 
-10 1.7101/440 _ 096 
-20 1670 1 JOT 06 _ 
—10 4.650 3650 06 
-4 70S 545 16 _ 

-5 G38 489 _ _ 
-SO 1.810 1J60 _ _ 
_ 1600 1690 _ _ 
-40 1.180 993 _ _ 
+704640 3600 _ _ 
-14 70B 521 06 _ 
—60 2,450 1620 _ _ 

z - 
— 16 _ 




®0 -IB 7S2 

1.120 -30 1J30 788 

1,180 -10 1640 MB 06 

BZ7 -1 938 512 _ _ 

U8W +10 £220 1680 _ _ 

5*0 -a 580 428 

800 -IS 900 780 1.9 _ sanlld 

402 -11 483 321 _ SunOS* 

1670 -20 £010 1,420 12 BuoM 

1690 -OT 1680 1.700 _ _ SuAr 

1.7B0 -20 1620 1,500 — _ SpaM 

1.140 +301 JOT 990 1.1 _ SUdtaM 

2630 -170 1640 £720 _ 

914 -IB 960 711 _ 

573 -2 848 097 ._ 

784 -1 882 £SS _ _ Ttftaftl 

687 _ 732 557 _ _ rafc&e 

740 -10 782 562 0.7 TVnSfl 

1630 +10 1640 1600 08 Tman 

843 -6 983 4B0 — . _ TteS&i 

510 -10 03 386 — — TanS* 

1600 _ 1/230 700 07 _ T«fan 

2610 -40 3610 2610 _ Teto 

1240 -30 1270 1620 _ _ TtaMi 

680 -12 724 

1200 -20 1600 

520 -fl 5SD 335 _ _ Ti 

790 -7 S33 6CQ _ 

540 -1 588 425 _ _ TU 

501 -6 604 394 _ _ 

944 +2 1210 798 _ _ 

1.100 -40 1 JOT 842 _ 

758 -2 792 487 _ 

727 -2 774 500 ... _ TotacD 

503 -11 560 407 _ _ lotaoU 

446 -14 454 316 _ _ Ttotaia 

ijg 4!igi.g : : iSS 

1,700 -30 16101650 _ ... TMtanta 

980 -3 890 455 . IkStai 

TVBcn 



400 _ 512 381 12 

7670 -40 9600 7/430 _ 

t6l0 -» 1610 1620 .. 

2/460 2660 £450 _ 

1.070 -30 1.110 775 _ 

£070 -20 26201610 _ 

920 -10 1640 540 „ 

1,170 -20 1J90 1.1OT _ 

1200 -40 1680 1.120 _ 

K» +3 838 500 1 0 

SOT -a 810 411 __ 

358 -2 385 258 _ _ 

605 -3 700 500 _ _ 

634 -2 523 481 _ 

1.420 +10 1.590 1.110 _ „ 

2250 -10 £820 £100 _ _ 

781 -9 B28 700 09 _ 
5600 -2OOO4GOS60O _ _ 

773 -lfi BS2 818 _ _ 
-3 7*7 425 _ _ 
-40 £280 1600 _ _ 

-11 673 433 _ _ 

_S 537 iru 
-10 1.1 DO B37 _ _ 
_ 1,880 1 299 _ _ 
—12 475 360 _ _ 
-3 485 288 _ 

-a 1.(00 an 06 

340 -5 349 252 

I 826 -10 1J10 864 _ _ 

572 -5 734 811 16 _ 

960 _ 1.120 815 _ _ 

1610 -» 1620 1.080 _ _ 

734 -1 BIB 874 

1240 -20 1620 1 ,050 _ _ 

4J60 +10 5630 3.780 _ _ 

691 -11 746 BIO _ _ 

1620 -60 2JTQ 1610 16 _ 

520 -10 722 S70 _ _ 

7B5 -8 862 576 06 ... 

1,480 -10 1650 1670 _ _ 

1240 -OT1J40 1630 _ 

875 -8 1640 870 _ _ 

581 -10 605 400 _ _ 

770 -7 IBB B18 0J _ 

92B -OT 1.100 705 06 _ 

794 -9 851 568 (16 

478 _ S55 367 16 _ 

645 -4 720 6CO _ _ 

983 +15 993 870 _ 

782 -28 907 _ ... 

18600 -400 21500 17280 — 


_ TtlCptl 


£57 
*25 
965 

Wife* 762 

ASM 760 
nsnr za* 


- WMl 365 


-62 £74 161 .. 

_ 463 J28 4.1 
-03 098 £.10 SA 
-69 865 020 VO 

♦65 062 760 £6 
-61 £35 £21 46 
-64 565 4.13 1 A 
4JZ +66 *68 3.70 12 
- -62 152 £74 26 


8MGK0K(Sep5/HJ£S) 



71 

Orta ELS8 
C BkT 2365 
Ortln# 17.19 

Wan i£35 

GEatfa 428 
Guoeo a 
HSBC 91S0OT 
tOinaD 14J0 
HSand 5726 
HartriS 1075 
Hentor 7.10 
Hbmjm 45.10 

KKOO 1425 
HKSM 12 
m At 3460 
MCBs 26.70 

HOtaia £100 
NOMA 71 AO 
IK Id 18.70 


23.40 

TOJS 

7360 

3220 

156S 

11.15 


iucm 


— ... SMKPr 


3.QOT 


340 _ 400 301 _ _ TUjOS 477 

JS'SMBS z £^ 

“ ‘ SSr "" 


-3 469 378 _ 


STB _ TlaaOp 
770 17 _ TtaAild 
310 _ _ Town 
8« TSpnft 

-810- 


_ — TdOfejL 1,960 


3JOT 

£140 



l (Sep 5 /Kroner) 


ail 


S3 -160 93 

82 -160 95.75 
580 -6 000 

588 S 685 
ISO -6 197 

17B -f 1M 

81 SC -60 18UD 7B60 96 _. 
92 _ 10860 

379 -9 469 

412 -B 437 
B5 -6 134 
05 -60 134 
8360 -2 110 

383 -A *30 
4360 -60 


Gua* 


MCata 855 
MCrao 1670 


ijg 2 ^ 

-7 513 


-71.040 719 _ _ 
-10 1270 990 _ _ 
_£50016BO _ _ 
-30 1,1 BO 8*1 _ _ 
-8 788 514 _. _ 

-23 933 787 _ _ 
1600 1,110 _ _ 
-28 700 428 06 _ 

_ 1250 938 _ __ 

-3 B39 440 _ _ 

-8 734 602 1.1 _ 

-6 6AG 577 _ _ 
-6 525 438 _ ._ 
-2 780 .... 

-30 1.130 795 — _ 
-fl 550 697 1.7 _ 
-26 050 

. -8 078 
-31 1.120 
-12 #40 
-80 2640 1 
-14 1.120 


AtaPM 914 -1 930 

UBToa 425 -1 449 

MtTrfl 1.100 —40 1.400 

utksfi 1630 -ai.no 

Ittsre 1640 -20 £230 1610 £3 

MM 1 8*7 —3 782 

UzSprt 1.100 -20 1210 

Hcefeti £140 -40 £600 1683 0.4 _ TtatOJ 

Hntsll 560 *S 824 405 at ... Tosoh 

MOOS £000 —£700 £000 _ _ Tl 

■fiiMan 4650 —4.940 3620 — 

NEC 1 JOT -30 1610 BSB — 

HGXkl 1660 -101.170 965 _ _ Toyota 

NGXSp 1630 -20 1.440 1 JED — _ ToyUta 

MKSp 580 -5 030 305 _ _ 

HOC 288 -8 297 231 _ _ TySSS 

WJK 001 -29 915 565 — ._ Tfr^TS 

KSX 767 -20 791 528 16 — TojoTB 

MIN 751 +4 774 483 _ _ Tmoho 

Mtfu 427 -2 494 316 _ _ TaBSJh 

nr»r 987 -cb sio e&s _ _ imn 

rtacBM 962 -2 1JJ40 781 06 — UBt 

Ntfro 530 -4 588 500 _ — IMM 

Nsltta* 1630 —£080 1600 ... — Vlctnr 

Met* 1,430 — 16601/4OT — — Waco, 

Rental 730 +2 BIB 690 — _ 

MtanCm 7B7 -7 BIO 028 _ — 

NBrtto 490 -B 550 400 0.8 — 

MM 782 — 8G1 STB _ — 

Ntat 465 -13 S20 412 _ _ 

*£♦ 1.170 -a 1/440 1.060 0.7 _ 

967 -23 1,140 B5S _ _ YMTHn 

6640 -00 7600 6.150 _ — 

BOB -6 0640 061 _ _ 

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-30 £130 1610 _ 

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-8 802 702 16 _ VAnBk 

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574 -16 600 495 £7 

490 +1.70 710 442 46 

770 —4 1,0TB 652 7.8 

77 +1 119 72 34 

426 +1 570 415 86 


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BMBA9 £880 
Btora 1.875 
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Bnani 24650 
Buga 9610 

m £100 

Cirf^ £060 
on* 1.700 
CldFta 1J40 
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Mat 1OJ0Q 
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FW 0379 
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FonSpa 11JJ50 

aai*» 1.419 

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-50 2JB» 1650 09 
-275 18JBD 9.790 _ 
-53 26041J88 _ 
-125 7630 4671 16 
-73 4620 £118 £8 
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-250 12,100 3JB8 £T 
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611 235 £9 
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177 -6 216 165 36 

177 -8 216 152 36 

337 -8 372 17 26 

131 -3 166 1* 1.7 

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134 -4 108 129 3-2 

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11# -4 142 660 16 

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111 -219050 9760 16 

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43 0 -8 480 360 16 

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103 -4 120 78 03 

142 -4 IO 106 56 

142 -5 IB 106 66 


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-t ZSQ 1«D 16 
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-7 942 718 16 
-6 422 331 _ 
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-6 1.04O1JJ6O 26 
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+4 983 8S9 16 
-a 450 310 36 



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-1 636 326 _ _ 

-11 887 415 _ _ 

— 1600 1.180 0.7 _ 

-11 58? Cl 

-30 1 JOT 1.450 _ _ 

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-17 080 43Z _ _ 
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-2 432 285 _ 

-8 418 272 _ 

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809301 CB9 
96922 Crown* 

15900 DonsnA 

2300 Dertm 
103112 Dataco 
93901 CknanT 
53137 Dpmtr 

28750 MW 

2200 DIMM 
38200 tmptat 
1388*9 Ect»B 
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134080 EutHa* 

1900 m 
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Stocks 

CIOBhig 

Chang# 


Stocks 

Closing 

Change 


Traded 

Prices 

on day 


Traded 

Prices 

on day 

Mppon Steel 

aom 

377 

-8 

Ricoh - 

3.5m 

960 

-11 

AsaN Chem _____ 

7.7m 

807 

+8 

Toda Corp . 

-.. 3-2m 

BBS 

+15 

Sunttomo Mfl 

45m 

340 

-5 

Kobe Steel 

3-2m 

331 

-1 

Kawasaki Steel , 

4.0m 

430 


NKK — 

3.1m 

288 

-8 

Fhssan _ 

3.8m 

760 

-13 

Mitsubishi CS 

2.8m 

1100 

-40 


INDICES 


US INDICES 



Ste 

5 

sen 

2 






Sep 

1 


HUP 

Lnvr 

toSp 9*12/77) 

M 

2101214 

21211638(7840 

16)2 

1776950 2V4 

Unite 

NOntaaria(l7U60| 

209SS 

21079 

21005 

254880 

3/2. 

185740 Z7« 

MltekBflft/aq 

10729 

10739 

10726 

1138.10 

3/2 

90*66 515 

cuMteaOonzAq 

41996 

4233) 

48*48 

48066 

2/2 

39887 226 

Irated WBC/WII 

1I3&66 

114768 

115164 

122226 

1/2 

181168 B/B 

BBJDOftAI) 

147262 

148273 

1*7994 

W26S 

6C 

1S8U8 13/7 

tel 

BDwpacyiZfflS 

« 

538759 

543600 

5430900 

1A 

38809# 3ft 

Cmate 

mm Mwf(i97S) 

« 

4071.17 

406862 

409360 

31/8 

329908 20N 

CBapofeta* (1975) 

« 

4344JO 

434460 

46099# 

on 

395080 2 M 

PBIWtaffi (VU85 

« 

207848 

206167 

218299 

1/2 

MSS. 17 20/7 

CMa 

FGA Gan (31ft2/8Q 

« 

48219 

48326 

4BK7J0 

4/2 

89012# 4M 


SEP 

s 


sap 

2 




-1984 


FC (Mar 1979 


CBS TTFtafiBrfnd 83) 
CSS t# Sir pnd 83) 


M 257463 2S8361 296117 « 


4498 
281 J 


408 

2908 



31/1 

31/1 


312 


cl 7861 217X75 215762 
110030 1123.09 111919 1211.1# 2N2 

310430 30S82B 307939 330937 471 

29516 29804 297.1 322880 1812 

57527 64161 4/1 


196733 20H 

maO 21/8 

25760 ZW 
194551 11/7 
9BBBI 2W 
ZB733 S3 
2B12J9 20# 


CaperbaganSEO/i/B^ 


HEX GanoaCS/IZ/SO) 

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38007 36864 35073 <1529 2/2 

19916 19S1J 19818 137260 48! 

1346.10 1358.42 1364A6 «S2D 20 

193520 202067 203461 2 39 593 32 

82429 531.88 82830 85927 186 

23*36 23050 23SX1 24B99D 2)5 

217432 220471 220090 2271.11 IBS 

84982 85367 84790 119** 1®1 

886294 990136 388090 1220198 V\ 

4510.75 452021 454270 4SBM0 Slfl 

51942 61X56 512J1 B1*M 5/1 

194127 190279 191560 20BZW 2QT! 

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1866.18 4/7 

75791 SIS 
214930 27 K 
199862 2M 

8BB0 256 

836944 40 

345408 S/1 

44932 12/7 

1894.14 1/7 


MnaCDdB^VUV 

Spain 

Marti SE (3002/83 

Baoden 

MnoRMan (VS37) 


57X70 


96981 94452 
29950 30365 
14396 14602 


23319 269906 » 
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94923 97468 2f2 

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■ RATIOS 


Dow Janes hnd. Ov. Yield 


SAP bxl D*/. yield 
S & P Ind. R/E ibBo 


Sep 2 

Aug 26 

A(4 19 

Year ago 

£83 

£64 

£73 

£80 

Aug 31 

Aug 24 

Aug 17 

Year ago 

£63 

267 

£43 

£46 

21.11 

20.73 

2391 

27.60 


■ STANDARD AM POORS 300 MDEX FUTURES 5600 Ttmeo Mn (Sep 

2 ) 



Open Sett price 

CTiange 


Low 

Sep 

473.60 

47155 

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47590 

47020 

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47766 

474.05 

-260 

47796 

47290 

Mar 

480 AO 

477.15 

-290’ 

481 DO 

47535 


EoLvoL Open Hit 
68^484 181.700 
15,750 6Z541 

107 4/418 


Open Interest figures are ha prams stay. 

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36 


FINANCIAL TIMES 


Tuesday September 6 1994 


★ 


WORLD STOCK MARKETS 


EUROPE 

Bourses savaged by 
interest rate bears 


1 FT-SE Actuane 

:S Sh 

are in 

dices 




1 

SepS 





THE EUROPEAN SS1ES 

Hnsfy changes 

Open 

1030 

1UB 

1200 

1100 

1400 

1500 

One 

FT-SE Euutracfc 100 
FT-SE Euratrack 200 

1387.25 

144059 

138835 

144031 

1 38093 
1444.12 

1387.71 

144154 

1387.47 

1444.16 

138149 

144141 

137080 

143601 

1380.11 

1438.12 



Sep 2 

Sep 1 Aug 31 

Am 30 

Ang 28 


FT-SE Euranck 100 1«1 JBB 139082 140582 1401.00 138089 

FT-SE Bxutra* 200 1*51.57 145009 146046 148943 144848 

Bon WOO CQn*TO ttgfcUtj: 100 ■ 1S8H.4U: ZOO ■ 14*640 LotdCqr no- 137077 200 - 1448(9 MMt 


While US markets were closed 
for the Labor Day holiday yes- 
terday, European bourses were 
hit by last Friday afternoon's 
falls in treasuries in New York, 
as well as by ongoing weak- 
ness in the dollar, writes Our 
Market s Staff. 

FRANKFURT saw its main 
falls in the interest rate-sensi- 
tive financials as the Dax index 
fell 30.19 to 2,174^2 on the ses- 
sion, touching 2,163.30 in the 
post-bourse before recovering 
to close at an Ibis-indicated 
2,173.60. 

Turnover fell from DM&lbn 
to DM4.7bn. Among the finan- 
cials, Allianz lost DM48 at 
DM2,440. Deutsche Rank DM12 
at DM719.50 and Bayemverein 
DM12.50 at DM448. 

A Goldman Sachs study said 
that German government bond 
yields were set to rise because 
of accelerating economic 
growth, a likely rise in official 
rates in the first quarter of 
1995 and heavy new supply. 
Yesterday, the Bundesbank's 
average bond yield rose by 9 
basis points to 7.19 per cent 

However, at the same time, 
fund managers in Germany 
were detecting a light shift 


Wall Street and Toronto were 
closed yesterday for the Labor 
Day holiday 


towards debt from shares, say- 
ing that the benign infla tion 
outlook should overcompen- 
sate for the likely end in the 
short term to Bundesbank rate 
cuts, while shares - which rose 
by nearly 11 per cent in July 
and August - appeared unpre- 
pared for the next stage in the 
economic cycle. 

In this context, it seemed 
odd that the day's main blue 
chip winner was Viag, utility 
based and rate-sensitive. How- 
ever, there was talk of a big 
buying order in the stock for 
US, or at least foreign con- 
sumption. 

PARIS saw the CAC 40 index 
breach 2,000, and hit 1,978.54 
before it closed 22.17 lower at 
1,998.20. One or two banks 
were savaged. Suez losing FFr5 
at FFr263 and BNP FFr5.90 at 
FFr253.70, but there was just as 
much pain in industrials: 
Bouygues lost FFr15 at FFr832, 
Peugeot FFr18 at FFr846 and 
Air Liquide FFr15 at FFr748. 

The retailer Casino found 
itself aptly named after trading 
was resumed following an 
early suspension. The company 
said that it planned to change 


its legal status from partner- 
ship to public limited com- 
pany, and this, at a time of 
transnational bid talk in the 
supermarket business, saw the 
shares hit FFr175 before dos- 
ing FFr6.40 up at FFr170. 

MADRID'S general Index fell 
through 300, bottoming at 
297.50 before it ended 4.45. or 
1.5 per cent, lower at 299.50. 

Selective interest rate-sensi- 
tives lost ground, Argentarla 
PtalfiO at Pta5.100 in banks and 
Endesa PtalSO at Pta5.430 in 
utilities, but bare, too, industri- 

Sweden 

Aft&rsvoriden Index 



als kept pace, with Repsol 
Pta95 off at Pta4,030 and Tele- 
fonica down Pta30 at Ptal,755. 

In construction, Agroman 
fell Pta88, or 15 per cent, to a 
1994 low of PtaSOO after a simi- 
lar loss on PTiday; heavier 
first-half losses last week were 
followed yesterday by a 
mooted capital reduction 
sc hem e. 

ZURICH saw further foreign 
demand early in the day before 
activity slowed in the absence 
of US demand during the after- 
noon, leaving shares slipping 
back from their best levels. 
The SMI index finished 2.5 
higher at 2.67-L5 after a peak of 
2,690.5. 

Roche certificates added 
another SFr85 at SFr6,355. 
while UBS bearers picked up 
SFr4 to SFrI.203 amid foreign 
buying after last week’s opti- 
mistic earnings outlooks. 


However, Nestle gave up 
SFr4 to SFrl233 and BBC bear- 
ers eased SFr7 to SFr 1,197. 

Sulzer put on SFr4 at SFi940 
on news that its Sulzer Hydro 
division had won a SFr54m 
contract to provide Francis tur- 
bines to Tnrtia 

MILAN remained under pres- 
sure, the Comit index faffing 
11.79, or 1.7 per cent, to 673.23, 
with blue chips leading the 
decline. Turnover picked up 
from recent levels, but it was 
still low. 

Among the biggest losers, 
Telecom Italia fell LL50. or 3 
per cent, to L4,440 ami Gener- 
ali was LLOOO, or 2.4 per cent, 
lower at L40.700. BC1 gave up 
L125, or 3.4 per cent, bo L3.550, 
with the bank's rights plum- 
meting 14JS pm* cent to L484.7. 

Olivetti, heavily sold last 
week, fell another L50, or 13 
per cent, to L2.090. Cir, its 
holding company, gave up 
LlOO, or -L5 per cent, at L2.100. 

AMSTERDAM was deflated 
by the US holiday, softer bonds 
and slight pressure on the dol- 
lar. The AEX index closed 1.17 
down at 417.97. 

HeLneken lost FI 1.80 at 
FI 241.00 ahead of results, and 
analysts noted that BolsWessa- 
nen, another d rinks group’ 
turned in unexpectedly poor 
figure s last week. 

STOCKHOLM dived with its 
debt market after opinion polls 
pointed to the weakness of the 
opposition SDP party, and the 
risks implicit in minority gov- 
ernment after the general elec- 
tion in 12 days' time. 

The Af&rsvfirlden General 
index fell 28.60, or 1.95 per 
cent, to 1,439.60. Astra A lost 
SKr6 at SKrl80 on profit-tak- 
ing. and the banking and 
insurance index dropped by 3.5 
per cent. 

TEL AVIV celebrated today's 
Jewish New Year holiday with 
the seventh consecutive rise in 
the Mishtanim index, which 
closed 5.75, or 3.1 per cent, 
higher at 19119. 


Written and edited by WBBam 
Cochrane and Michael Morgan 


Brazil plunges 8.6% as minister quits 


SSo Paulo plunged 8.6 per cent 
in heavy midday trading as 
investors sold on concern that 
Mr Fernando Henrique Car- 
doso's presidential candidacy 
would be damaged by the res- 
ignation of Mr Rubens Ricu- 
pero as economy minister, 
writes Michael Morgan. 

The Bovespa index fell 4,630 
to 49,045 at 1300 local time in 
turnover of R$2l&5m 1 8243.5m), 
but foreign selling was said to 
be limited by Uie Labor Day 
holiday in the US. 

In earlier London trading, 
Brazilian slocks traded as 


ADRs were marked as much as 
10 per cent lower from the 
prices at which they had closed 
on Friday on Wall Street 

Mr Robert Barclay of Baring 
Securities commented that 
uncertainty about any action 
by the electoral authority, over 
whether to permit Mr Car- 
doso's candidature to continue, 
would overhang the market 
until a decision was 
announced. 

He expected the market to 
fell by as much as 20 per cent 
over the next two weeks, espe- 
cially as it was already looking 


for an excuse to take profits. 

Mr Barclay added that he 
still expected the PSDB party 
to recover from the crisis and 
for Mr Cardoso to be elected as 
president, which would prompt 
a sharp market rebound in 
share prices before the end of 
the year. 

Telebras saw its preferred 
stock drop 7.1 per cent to RS48 
as analysts warned that it 
could fell further to RS47J50. 
Petrobras preferred lost 7 JO per 
cent at R3153.50, while Eletro- 
bras preferred were quoted 
down 8.6 per cent at RS340. 


Firm golds help S Africa to extend recent gains 


Johannesburg was broadly firmer as investors 
overcame fears of profit-taking and stocks 
extended recent gains in mostly steady trade. 
The US Labor Day holiday did little to dampen 
enthusiasm, while a static bullion price proved 
no Inhibition to demand for gold shares. 

A decision by motor assembly workers, on 
strike for the last five weeks, to return to 
work from tomorrow gave late support to 
industrials, which bad lagged behind the mar- 
ket for most of the day. 


The gold shares index climbed 51 to 2,453 
after a 71-point advance on Friday. The overall 
index was 41 ahead at 5,956 and industrials 
added 22 at 6,608, having rebounded from an 
early low of 6j>72. 

De Beers was R2 higher at R107, Anglos put 
on R2 at R260 and Gencor firmed 50 emits to 
R 14.75. Against the trend, SAB lost 50 cents at 
R86.75 and Barlows shed 25 cents to B33.75. 

Iscor was 16 cents stronger at R4.48 in a 
continued bullish reaction to year-end results. 


FT -ACTUARIES WORLD INDICES 


N Ireland peace hopes boost Dublin 


By William Cochrane 

The FT-Actuaries World Index 
came out virtually unchanged 
last week but, across tbe 
world, there were some big 
individual market movements. 

Europe's best performer was 
Ireland, one of the smallest 
stock markets In Europe, and 
up by <L5 per cent in local cur- 
rency terms after a 3.5 per 
cent gain the week before. In 
its current EuroLetter, Morgan 
S tanl ey acknowledges that the 

announcement of an IRA 
ceasefire and the hopes for 
peace in Northern Ireland 
could only be good for the 
whole island. 

However, Mr Richard David- 
son, the bank’s European 
strategist, bases his argument 
for Ireland’s equity market 
mainly on the transformation 
of Irish economic performance 
in recent years. "We believe 
that the combination of an 
attractive valuation and a 
remarkable economic story, 
plus respectable profit growth, 
more than outweighs the his- 
toric investor worries about 
low liquidity and a restricted 
sector choice,” he maintains. 

Another smaller market, 
Finland, was Europe’s next 
best performer, its 4.1 per cent 


gain taking it to a rise of 26£ 
per cent for this year so far, 
against a 3-7 per cent fell for 
Europe, excluding the UK. 

Goldman Sachs believes that 
the Helsinki market remains 
attractive, and its analysts Mr 
Anders Brateutus and Mr Klas 
Andersson forecast a further 
20 p ear cent gain over the next 
12 months; they expect contin- 
uously strong earnings with a 
stronger Finnish Marks being 
the only material risk for 
earnings disappointments. 

They say the macro picture 
is improving in Finland. Posi- 
tive factors include strong 
growth ahead as the effect of 
booming exports spreads into 
domestic activities, subdued 
inflati on and scope for dedin- 
ing long-term interest rates. 
On the distaff side, they note a 
very high unemployment rate, 
and weak public finances. 

Europe's biggest fell of the 
week, 2.4 per cent, was in 
Spain. Ms Clare Miles at Klein- 
wort Benson notes that the 
Madrid market was making 
good progress in July and at 

the beginning of August, but 
that the Swedish and Italian 
official interest rate rises on 
July 10 left the outlook for fur- 
ther Interest rate cuts in Spain 
looking precarious. 

Ms Miles advises a redaction 


in interest rate-sensitive 
stocks in Spain, and a switch 
into cyclical. 

Mr Marcus Grubb, the Salo- 
mon Brothers strategist, says 
the broker’s Spanish equity 
research team has reduced its 
year-end target for the Madrid 
General index from 365 to 325, 
a rise of only 5J5 per cent from 
last Friday’s level, and that 
Salomon has reduced its 
weighting in Spanish equities 
in favour of German and Swiss 
shares. 

In the Pacific Basin, Hong 
Kong topped the ratings with 
a rise of 5.8 per cent on the 
week. Nomura's global strat- 
egy team of Mr Nicholas 
Knight and Ms Alison Southey 
have moved 4 per cent of their 
equity allocation oat of Tokyo 
and into Hong Kong. 

They take the view that, in 
the US, long rates have not yet 
peaked and the dollar still has 
farther to go on the downside. 
“The Dow, moreover, shoald 
he pressured by concerns with 
regard to earnings and higher 
bond yields," they say. 

In Europe, they reckon that 
the global interest rate envi- 
ronment will continue to pot 
pressure on equities; and in 
Japan, that the stock market 
is vulnerable to a renewed 
burst of dollar weakness, and 


MARKETS IN PERSPECTIVE 


% Chong* In tori oerenc* f 

« drew 

m*n t 

Hdwfl* 

tausst 


1 «M 

4 HMta 

1 Ymt 

tart at 

tsw 

awn of 

na 

tart* 

mt 

Austria — 

+1.41 

+OJ94 

+5.75 

-4.46 

+0.99 

+5.45 


+1.09 

-0.87 

+8.60 

-321 

+424 

+825 

Denmark 

-0.13 

-6.79 

+2.48 

-5.84 

-0.41 

+329 

Finland .. — 

+4.11 

+6.69 

*45.65 

+26.79 

+39.38 

+45.54 


-1.44 

-3.61 

-327 

-9.60 

-4.45 

-022 

Germany ... 

+J.S9 

+0.95 

+11.69 

-4.19 

+6.40 

+8,63 

Ireland 

+4.50 

*3.20 

+16.35 

+6.80 

+1524 

+1628 

Italy - 

-a sa 

-297 

+8-60 

+11.77 

+2124 

+21.49 

Netherlands 

+022 

+0.46 

+11.11 

-128 

+920 

+9.42 

Norway — 

-0.16 

-1.66 

+14.10 

+524 

+10.86 

+15.76 

Spain . . 

-2.44 

-6.18 

-1.74 

-829 

-3.46 

+0.80 

Sweden 

+1.26 

+0.45 

+15.75 

+6.03 

+1526 

+1520 

Switzerland 

+2.B6 

+2.45 

+9.82 

-820 

-0.45 

+3.95 

UK 

-1.18 

+1.67 

+5.11 

-5.11 

-5.11 

-0.92 

EUROPE 

-028 

+0.07 

+6.10 

-429 

-020 

+320 

Australia 

+1.21 

+0.47 

+822 

-a 13 

+625 

+7.08 

Hong Kong 

+5.84 

+3.78 

+36.37 

-1726 

-1723 

-17.36 

Japan 

+0.33 

-0.46 

-229 

+1285 

+26.45 

+26.71 

Malaysia _.. 

+3.79 

+6-58 

+40.17 

-9.40 

-424 

-424 

New Zealand 

+4.78 

+4.32 

+10.77 

+2.95 

+11.14 

+11.37 

Singapore 

+1.91 

+2-28 

+19.44 

-6.64 

-026 

•025 

Canada 

+1.05 

+426 

+9.42 

+3.09 

-427 

-0.14 

USA 

4158 

+2.90 

+1.94 

+121 

-327 

+121 

Mexico 

-3.26 

+3.08 

+40.49 

+2.78 

-929 

-5.70 

South Africa 

+0.76 

+2.79 

+5226 

+20.74 

+928 

+1421 

WORLD INDEX 

+ao7 

+1.18 

+323 

+228 

+323 

+8.11 


f g— d on Sapwmfcir 2nd UK GeppIgM; TO* HnaneM Hon UnMd, OMw M«t 
Co, HaOKaM Swdta United. 


strength in the yen. 

"Only South East Asia wins 
as far as we can see," they 
declare, “as concerns with 


regard to the upward march in 
US short-term rates amelio- 
rate. The biggest winner from 
this is Hong Kong.” 


ASIA PACIFIC 

Nikkei retreats as Shanghai surges 


Tokyo 

Arbitrage unwinding and prof- 
it-taking by corporate investors 
depressed share prices, while 
trading volume declined as 
many institutional investors 
remained inactive ahead of the 
listing of Japan Telecom 
shares, writes Enriko Terazono 
in Tokyo. 

The Nikkei 225 average 
ended 244.65, or 12 per cent, off 
at 20,409.18 after a high of 
20,64523 and low of 2028528. 

Traders said investors were 
worried about the expensive 
public offering price of JT at 
Y4.7m, while some analysts 
feared that investors might sell 
other shareholdings to buy JT 
stock. Selling to realise profits 
ahead of the interim book clos- 
ing by most corporations had 
already finished. However, 
many banks, which need to off- 
set write-offs for bad loans, 
were expected to continue to 
do so until the end of the 
month. 

Volume fell to 272m shares 
from 355m. Some investors 
chose not to trade, citing the 
Labor Day holiday in New 
York. The Topix index cf all 
first section stocks declined 
2JL68 to 1,618.46 and the Nikkei 
300 shed 420 to 295.07. Losers 
led gainers by 824 to 205, with 
147 issues unchanged. In Lon- 
don the LSE/Nikkei 50 index 
eased 024 to 121722. 

Bearishness over JT 
prompted declines in the tele- 
communication sector. Nippon 
Telegraph and Telephone, the 
leading telecom operator, 
dropped Y24.000, or 2.6 per 
cent, to Y906.000, while DDL a 
second section company, 
receded Y27.000 to Y97L000. 

Ba mlngs-Itafc ed trading was 
also evident T hink tanks affili- 
ated with the leading brokers 
release corporate earnings out- 
looks later this week, and 
investors are expected to boost 
trading in individual compa- 
nies with earnings revisions. 

Fears of lower earnings at 
Capcom, a video game maker, 
hurt the whole sector. The 
stock weakened Y500 to Y2.750. 
while Sega Enterprises 
retreated Y480 to Y6.420 on 
selling by overseas investors. 

Machine tool producers, an 
the other hand, were higher on 
hopes of increased capital 
sp ending . Oknma climbed Y42 


to Y958 and Ikegai Y9 to Y428. 

Steelmakers were actively 
traded bnt lost ground on prof- 
it-taking. Nippon Steel, the 
day’s most active issue, slipped 
Y8 to Y377 and Sumitomo 
Metal Industries Y5 to Y340. 

In Osaka, the OSE average 
dipped 18L06 to 22,71821 in vol- 
ume of 852m shares. 


Roundup 


Fortunes were mixed in the 
Pacific Rim. 

SHANGHAI'S A share Index 
surged 13.7 per cent in 
extremely active trading as 
institutions, major individual 
shareholders and sma ll inves- 
tors launched a buying spree, 
their confidence boosted by 
news that Beijing was pressing 
ahead with a plan to invite for- 
eign funds into the domestic A 
share market 

The index gained 11628 at 


973.48 in record turnover of 
Ynl52hn, topping the previous 
record of Ynl220bn on August 
11. In Shenzhen, the A share 
index soared 35.07, or 192 per 
cent to 212.62. 

Shanghai’s B index closed 
320, or 42 per cent, up at 82.17 
in heavy volume of 10.6m 
shares and the Shenzhen B 
index rose 0.78 points to 11529. 

SEOUL put on 22 per cent in 
active trading on expectations 
of a market rally by the end of 
the year. The composite index 
ended 21.73 higher at 969.61. 
Volume totalled 40.6m shares, 
against a previous 36.02m. 

HONG KONG was firmer but 
below the psychologically 
important 10200 level after a 
sharp, but unexpected, rally 
that drove the Hang Seng 
index up to a peak of 10,064.86 
ran out of steam. 

Tbe index was finally 60.48 
ahead at 9,962.04* while the H 


share index climbed a more 
modest 522 to 1281.62. 

Brokers said foreign inves- 
tors, particularly US and Japa- 
nese funds, spearheaded the 
buying spree, while many local 
investors sought to sell into 
strength and taka profits. 

TAIPEI lost 12 per cent in 
late selling on news that the 
August consumer price index 
rose to a higher than expected 
7.1 per cent, prompting con- 
cern that the central bank may 
move further to tighten mone- 
tary policy. 

The weighted index finished 
8423 off at 6,86622, after a 
da^s high of 626621, in tum- 
o ver o f T$63.4bn. 

SYDNEY was lower in thin 
volume following Wall Street's 
modest fall on Friday and with 
investors hesitant to trade 
ahead of the Labor Day holiday 
in the US. 

The All Ordinaries index 


13 . 7 % 


dosed 112 down at 2,0952. 

WELLINGTON finished fiat, 
the NZSE-40 capital index los- 
ing 224 at 2,17621, after recov- 
ering from an intraday low of 
2,16223, in N2$38.4m turnover. 

SINGAPORE was consolidat- 
ing after last week's gains and 
the Straits Times Industrial 
index eased 225 to 2228.06. 

Keppel closed 20 cents up at 
S31120 after news that it was 
joining a consortium to bid far 
a meddle phone licence. 

KUALA LUMPUR was mixed 
to slightly lower following a 
final push by traders which 
forced the market up from the 
day's lows during the last 
hour. The ELSE composite 
index ended a mere 127 softer 
at 1.1592L 

JAKARTA found unexpect- 
edly strong support from local 
and foreign investors and the 
official index moved forward 
326 to 519.42. 



Associated British Foods pic 

(formerly George Weston Holdings pic) 

Reorganisation of the share capitals of 

Associated British Foods pic, 
George Weston Holdings plc 

and 

Wittington Investments Limited 


Jontiy conwtied by The financial Times Ltd.. GafcJman. Sacha t, Co. and NatWtoat Securities Lid. in cor^unction with the institute of Actuaries and the Faculty of Actuaries 

NATIONAL ANO 

REGIONAL MARKETS FRIDAY SB'TQVSER 2 1894 THURSDAY SEPTEMBER 1 1884 DOLLAR INDEX 


Figures m psrenctwsea 

us 

Day's 

Pars'd 



1 rirel 

Local 

<3ra*s 

US 

Pound 



Local 



Year 

show ol Knee 

Mar 

Otanga 

Starling 

Yen 

DM 

Currency 

% dig 

Dlv. 

Data 

Staffing 

Yen 

DM Currency 52 wee*. 52 week 

ago 

of stock 

Ww 

W. 

Index 

Index 

Index 

Index 

on day 

Yield 

Index 

Index 

Index 

Index 

hdex 

Woh 

Low . 

(appro*) 

Australia 1681 

17828 

0.0 

171.47 

11226 

144.93 

18003 

00 

3.45 

178.73 

17202 

11260 

14053 

159.97 

189.15 

13924 

147.51 

Austria (171 - 

195,06 

O.i 

18720 

132.65 

16852 

168.12 

-04 

1.00 

194.91 

187.59 

12279 

16920 

iBs.re 

195.41 

164.64 

175.47 


177.04 

12 

16SU30 

11123 

143.60 

14036 

03 

1W 

174.88 

168,32 

11018 

143-38 

139.99 

177.0* 

143.62 

147JW 

Canada (104) 

135.00 

-0.1 

130.13 

65.19 

109.00 

134.21 

-Ol 

250 

135.72 

13083 

85.51 

11127 

134.42 

14031 

12084 

12789 

Denmark (33) — ... 

257.07 

1.4 

246.71 

16152 

208.62 

21050 

0.6 

1J0 

253-49 

24398 

158,69 

207.82 

214-38 

275.79 

22X94 

227.03 

FManaRM- 

179 JO 

10 

172.07 

ii 2 .es 

145.44 

183.84 

21 

074 

174.05 

167.52 

109 j65 

14270 

185-94 

179 JO 

104.28 

104.73 

France (97) — ..... 

...... 175.57 

0.3 

168.48 

11031 

142.41 

147.34 

-0.6 

299 

175,01 

168.44 

110.25 

143.48 

148.16 

185-37 

159J4 

16044 

Germany (561 — 

....... 149.5* 

1.4 

1415) 

93.96 

121 JO 

121 JO 

03 

1.70 

147.51 

141.97 

£293 

12093 

12093 

149.54 

124.30 

12087 

Hong Hong (86) 

- 404.38 

02 

388.09 

25428 

320.02 

401.18 

02 

3.05 

40356 

388-46 

254J6 

33090 

400.42 

50058 

29200 

295.67 

Ireland <14/ 

?T4.0S 

1.9 

20333 

135.08 

174.39 

187.7V 

t-2 

220 

210.92 

20001 

132.88 

T 72.83 

IBS-38 

ZUJ99 

161.54 

T6S86 

irafy (59) 

8333 

0.0 

7997 

52.38 

67.60 

96.01 

-04 

1.58 

83.36 

8023 

52.52 

6035 

98.44 

97.70 

5788 

7708 

Japan (469)- 

154.89 

02 

15025 

103.00 

133.75 

103.00 

00 

074 

164.40 

15824 

10267 

134,79 

10157 

17010 

124J4 

13X97 

Malaysia (97] ..._ 

— 565 8S 

02 

543.04 

36532 

456.99 

556.04 

Ol 

1.49 

564.00 

542.66 

355J2 

402.42 

666.51 

621.63 

39203 

404.17 

MftucMlS) 

... 225128 

-0.3 

216087 

1414.70 

182039 

8332.18 

-04 

1.60 

2258.37 

2173.06 

142276 

1851.55 

mm »5 

2847.08 

1615.11 

1743.68 

Motherland (27).- 

217.87 

1.G 

209.09 

13859 

170.73 

174.07 

05 

3J0 

214.48 

206.44 

135.12 

1 75 a5 

173.18 

21787 

18025 

185.40 

New Zealand (14) 

75.63 

14 

72.58 

47.52 

61-35 

56.38 

1.1 

3.60 

7457 

71.78 

4698 

61.14 

G5-67 

77.69 

5922 

62J1 

Norway (231 

. — 20725 

1.4 

199.56 

130.65 

16067 

183.17 

05 

1.71 

205.05 

197 JO 

129.18 

168.12 

19223 

211.74 

165 J2 

17338 

£mgapo»(44) 

38723 

02 

352.52 

230 79 

297.96 

253.66 

0.0 

1.67 

36726 

353.49 

23128 

301.11 

253.92 

378.92 

285 ai 

287.19 

South Africa (SB) 

305.12 

08 

292.81 

191.70 

247.49 

302.44 

OS 

209 

30277 

291.41 

190.74 

248.23 

299.76 

305-44 

178.93 

191.42 

Spain (42) 

140.47 

-03 

13421 

8826 

11194 

137.92 

-1.1 

4.18 

14085 

135.57 

88.73 

115^46 

139.49 

155.79 

12088 

137.70 

Sweden (36) 

226.80 

1.8 

217.66 

142.50 

183.97 

25692 

TO 

1JS6 

22230 

214.92 

1 40.68 

103.00 

2S4.41 

231 as 

17&B3 

183.61 

Swntzoland (47).... 

166.40 

SA 

159.75 

104.56 

13542 

135.35 

1.4 

1.79 

15263 

15053 

10246 

133.34 

133J0 

17056 

135.70 

13096 

Untred Kingdom (204) 

....... 203.10 

0.4 

19457 

12755 

164.79 

194.87 

0.1 

3-B8 

20229 

194.70 

127.44 

165.66 

184.70 

214.96 

181.11 

187.79 

USA (SIT) 

18221 

-as 

104.40 

12078 

15590 

13221 

-as 

282 

19211 

18037 

121.66 

150.33 

19011 

198.04 

17035 

16054 

EUROPE (718) 

17621 

as 

16091 

11050 

142.718 

157.98 

02 

2.94 

174.50 

16796 

109.93 

143.07 

157.68 

170.58 

153.96 

157.18 

Nordic (11 

-—■221.44 

12 

21251 

139.13 

179.62 

214.10 

i.i 

1J8 

21 7 JO 

209.43 

137.08 

17039 

211J8 

22203 

173.19 

17486 

PadOc Beam (74S) 

— 174.72 

03 

18758 

100.78 

141.73 

114.72 

ao 

105 

1?4J4 

187.70 

109.77 

14265 

114.67 

17088 

134.79 

163.18 

Euro-Pacific (1465) 

175.14 

05 

16007 

11004 

14000 

131^4 

0.1 

1-85 

17422 

10769 

109.76 

14284 

131.80 

175.14 

14388 

18000 

Merth America (621) 

188.69 

-05 

18128 

118.5S 

15355 

18021 

-0.5 

2J0 

18956 

1S244 

119A2 

155.41 

189.07 

19273 

175.67 

184.77 

Eurepo E*. UK (51 4] 

. — 157.56 

1.1 

15122 

99.01 

127.82 

13025 

02 

238 

155.83 

149.99 

90.17 

127.76 

13095 

15012 

134.07 

137.72 

Pacific Ex Japan (279) ... 

-27025 

02 

259.16 

16067 

219.05 

24010 

Ol 

270 

2G9J4 

259.43 

189J1 

22099 

239.77 

29021 

20013 

20431 

World Eh. US (184?) 

170.65 

05 

16052 

110.98 

143JS 

135.09 

01 

1J7 

175.78 

1ffl.1T 

11073 

144.10 

13054 

17065 

145.58 

16078 

World Ejl UK (1900). 

17859 

01 

17129 

11220 

14456 

149.17 

-Ol 

202 

176-35 

171.66 

11238 

14022 

149.35 

178-56 

155.96 

16730 

WOrtd Ea- So. Ai. (2105) . 

179.90 

ai 

172.72 

113.08 

14099 

152.17 

-Ol 

220 

179.70 

17298 

11321 

147J3 

15233 

180 .03 

158.B4 

169.00 

WOrid Ex. Japan (1695) .. 

— ..—191 J2 

ai 

183.60 

120 JO 

155.18 

18238 

-0.1 


191.12 

18395 

12040 

15069 

1B26S 

195-20 

174.04 

17041 

The World Max pi 64).. 

180.76 

02 

173.47 

113.67 

146.62 

15027 

-0.1 

220 

18047 

173.70 

11069 

147.90 

15042 

18080 

150BS 

16902 


CepifrigM. Qrihm Sactm arid Co. and MdMwl Socutaea Unted. 1W 

Aii—Kmuite *° **»•<«. *«" M** end DM Mt« lor »W* apffted to Australia, Onvny. h™ Kona. Ireland, uy, w i 

UwJUUL pi (MB not*; Prtcoo nsuriua lor Tim MDCfci. m W » n ational f*a<»imw Haw Dope, are l» Do mimnO ml 


Lazard Brothers. & Co., Limited acted as 
financial advisers to and sponsors of the 
public listing of George Weston Holdings plc 
(now Associated British Foods plc) 


Lazard Brothers & Co., Limited 


September 1994 


Issued by Lazard Brothers & Co., Limited, a member of the Securities and Futures Authority Limited. 


New Zeriand. Snoopae. Seed* andlMed