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Midterm elections 

Bleak outlook 
for Clinton 

Page 13 



OK rate rise 


Why confidence 
needed boosting 

Samuel Brfttan, Page 12 



Trains In a vacuum 

Swiss rail plan 

breaks new ground 

Page 10 



Northern 



Challenge is to 
mtttf^peace 

23-25 - 


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FINANCIAL TIMES 


;urope-s Business Newspaper , 


UK may be closer 
to lifting broadcast 
ban on Sinn Fein 

The British government may be closer to lifting its 
six-year broadcasting ban on Sinn F£dn amid signs 
of edging nearer to accepting the IRA ceasefire as 
permanent But Prime Minister John Major made 
dear the government required more evidence 
before ft would accept unequtvocably that violence 
was over for good. Page 14 

Sbc killed at British ports Six people were killed 
when a ferry gangway collapsed at the British port 
of Ramsgate. Pour Americans, one Austrian and 
one Japanese tourist were among the seven people 
injured in the accident Page 8 

Air Prance pitots to strike: France's mam 
airline pilots' union has called a partial strike over 
pay at the national airline Air Prance tomorrow 
and Saturday. Page 2 

Vr Russia faces energy crisis: An energy crisis 
more severe than any since the collapse of the 
Soviet Union now threatens Russia and its neigh- 
bouring states. Page 3 

Norddeutsehe Landediank-Orozentrae wfll 
pay DMlbn (?600m) for a 10 per cent stake in Bank- 
geseUschaft Berlin in one of the largest German 
banking deals in recent years. Page 15 

KLM Royal Dutch Airlines agreed to increase 
its stake in Northwest Airlines, the fourth-largest 
US carrier, from 20 per cent to 25 per cent Page 15 

TAN, UK automotive components and engineering 
group, was in talks last night for the acquisition of 
a majority stake In KoEbenschmidt, leading German 
automotive components producer. Page 15 

Barclays da Zoete Wedd, investment hanking 
arm of Barclays, signalled a move towards a new 
generation erf management by announcing that 
John Spencer, deputy chief executive, is to leave 
the firm at the end of the year. Page 15 

Coffee prices tumble: International coffee 
prices tumbled by $153 a tonne as London traders 
expressed confusion over Brazilian government 
plans to halt sales of its stockpile. Page 26 

Major lectures Santer on Europe: 


THURSDAY SEPTEMBER 15 1994 


D3523A 



John Major (left), British prime minister, met 
Jacques Santer, federalist president-designate of the 
European Commissicm, in the third of a series of 
sessions that Mr Santer is holding with European 
Union heads of government The meeting, at 
Chequers, the British leader’s country retreat, was 
described as “friendly”, but Mr Major is said to 
have lectured Mr Santer on the importance of the 
nation state. Page 2 


Polish I nterest rates rowr The Polish 
government has called on the country’s central 
bank to lower interest rates and has attacked the 
bulk's recent decision to lower the adjustable 
monthly devaluation rate - which devalues the 
zloty in order to keep exports competitive - from 
1.6 per cent to 15 per cent Page 3 

US backs nationwide banking: Bank industry 
lobbyists in Washington breathed a sigh of relief 
after the Senate finally passed a bill to allow banks 
to set up branches more freely outside their home 
states. Page 4 

US team finds cancer gene: A US research 
team has won the race to the most sought-after goal 
in science this year - isolating the gene that causes 
an inherited form of breast cancer. Page 14 

Dutch Join soap wan Unilever's new laundry 
detergent was criticised by the Dutch consumers' 
association which concluded after tests that “the 
damage" the detergent did to some clothes was “too 
great” Page 14 

Haktwara cute trade surplus: Japan's 
summer heatwave produced an unexpectedly large 
18.8 per cent foil in the August trade surplus, the 
first year-on-year drop for three months. Page 5 

West’s economic policies attacked: Leading 
industrialised nations are running restrictive 
economic policies which are suppressing global 
demand and contributing to high unemployment, 
according to the UN Conference on Trade and 
Development. Page 6 


■ STOCK MARKET INDICES 


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Beijing bars Jardine from role in HK port project 

Attack on trading group sours Sino-British ties on eve of Hurd visit 


By Simon Hoflbertan in Hong Kong 

China has ruled out the participation of 
the Jardine group, the trading empire 
which has long been central to Hong 
Kong’s fortunes, in a consortium to 
extend the colony's container port. 

The move puts on hold the develop- 
ment of the world’s busiest container 
facility, and casts a doubt over Jardine's 
ability to expand its business in China 
or Hong Kong after the 1997 handover of 
the colony. 

In a thinly-veiled attack on the com- 
pany and governor Chris Patten, Bei- 


jing's semi-official Hong Kong China 
news agency questioned the qualifica- 
tions of Jardine to operate a container 
te rminal, and alleged it had won the 
right to develop the port because of 
political favouritism. The commentary 
said Jardine “has no confidence in, and 
does not wish to make any commitment 
to, the future of Hong Kong”. 

China’s move, which came on the eve 
of a visit to Hong Kong by Mr Douglas 
Hurd, Britain’s foreign secretary, marks 


a worsening in Sino-British ties, which 
appeared to he on the mend. 

jardine has enjoyed a tempestuous 
relationship with the Chinese leadership 
over the past decade. This year it 
angered China when it decided to de-list 
from the Hong K on g Stock Exchange 
partly because it had little faith in Chi- 
na's ability to run the colony fairly after 
it resumes sovereignty in 1997. 

The last straw, however, appears to 
have been the 11 th hour change in vot- 


ing ipteptip n of Mr Martin Barrow, a 
jardine executive, at a crucial point in 
this June's Legislative Council debate 
cm Mr Patten’s democracy legislation. 
His decision to abstain delivered a one- 
vote victory to the government. 

Bering’s attack yesterday was vigor- 
ously contested by Sir Hamish Macleod. 
Hong Kong's financial secretary, who 
said that the colony operated a “level 
playing field" for all contracts. 

“Discriminatory practices run counter 


to all that Gatt and its successor the 
World Trade Organisation is trying to 
achieve,” he said. 

In the first six months of this year 
throughput at Hong Kong’s co n tainer 
port rose 26 per cent compared with the 
same period last year. Construction of 
the port extension, already 18 months 
delayed, appears to hinge on the ejection 
of Jardine from the Tang Yi consortium, 
in which it has a 80-40 per cent equity 
stake. Jardine Is thought to be under 
pressure from partners to withdraw. 

High anxiety fin: Hurd, Page 5 


AT&T opposed to US move 

Phone ruling 
promises 
transatlantic 
call sayings 


By Andrew Adonis in London and 
George Graham in Washingt on 

The cost of transatlantic phone 
calls is set to fall sharply after a 
ruling by US regulators, expected 
next week, which will open the 
way to greater competition on 
the UK-US route. 

The new regime - called inter- 
national simple resale - will also 
have far-reaching implications 
for the existing cartel between 
international phone companies, 
which keeps cross-border prices 
artificially high. 

The Federal Communications 
Commission, the US regulatory 
authority, is expected to say next 
week that the UK's telecoms 
regime offers competitive oppor- 
tunities broadly similar to those 
in the US. 

That will be followed by a 
reciprocal declaration by the UK 
government, after which 1SR is 
likely to be permitted. 

Under the system, operators 
resell lines leased from (he lead- 
ing transatlantic carriers at a dis- 
count to existing tariffs, and are 
allowed to connect the calls 
across the public network in both 
countries. Until now, resale oper- 
ators have not been allowed to 
utilise the public network on 
both sides of the Atlantic, 
restricting resale opportunities 
mainly to the large corporate sec- 
tor. 

The new competition might 
precipitate a price war on the 
lucrative US- UK route. 

The US and the UK have com- 
petitive telecoms regimes, with 


well established domestic rivals 
to British Telecommunications, 
the former UK monopoly opera- 
tor, and to American Telephone 
& Telegraph, which had a near 
monopoly in the US market until 
its break-up in 1984. 

Several large US phone compa- 
nies have gained licences to oper- 
ate in the UK since the abolition 
of the BT/Mereury duopoly in 
1991, with AT&T itself granted a 
draft licence in July. UK opera- 
tors are also active in the US. 

AT&T fought strongly against 
the latest ruling by the FCC. Yes- 
terday it claimed that BT was 
keeping prices artificially high by 
refusing to agree to its plan for a 
cut of nearly two-thirds in the 
rate which BT and AT&T pay 
each other for delivering interna- 
tional calls. Transatlantic phone 
prices have fallen sharply, with 
BTs UK-US prices down by more 
than a third over the past three 
years. 

However, analysts believe 
there is large scope for further 
cuts. Industry estimates suggest 
that it costs resale operators tit- 
tle more than 7p a minute in 
direct network charges to deliver 
a US-UK call, yet the daytime 
prices charged by BT and AT&T 
average nearly 45p a minute. 

The US accounts for about a 
fifth of BTs international traffic, 
while the UK is the third-largest 
destination for outgoing calls 
from the US. 

BT conceded yesterday that 

Continued on Page 14 
Lex, Page 14 



Former Washington mayor Marion Barry, who resigned in 1990 and served six months in prison on drugs charges, pictured yesterday after he 
had once more won the Democratic nomination fbr the mayoral election in November Report, Page 4; Featu r e, Page 13 

Forte wins battle for Meridien hotels 


By John Rkfcflng in Paris and 
Michael Staplnker in London 

Forte, the UK hotels and 
restaurants group, defeated 
Accor, its French rival, yesterday 
to win control of Meridien, the 
luxury hotel chain owned by Air 
France. 

The British group offered 
FFrl.Wbn ($200m) for the French 
airline's 57 per cent stake in Mer- 
idien, valuing the chain at 
FFrl.9bn. Accor’s offer valued 
Meridien at FFrl.7bn. 

Forte is now required to make 
an offer to minority shareholders. 

The sale follows Forte’s failure 
this week to fulfil its long-held 
ambition to win outright control 
of Savoy, the UK luxury hotel 
group. This year it also failed to 
acquire Clga. the Italian luxury 
chain, which was purchased by 
ITT Sheraton of the US. 


Mr Rocco Forte, Forte chair- 
man, described the purchase as 
an important step in “transform- 
ing Forte into a major player in 
the international luxury hotel 
markef. He said it gave Forte its 
first entry into Asia and 
increased its presence in Europe, 
the Middle East and North 
America. 

Yesterday’s decision by Air 
France follows several months of 
heated competition between the 
British and French rivals. Accor 
strongly lobbied the centre-right 


government of prime minister 
Edouard Baffadin;. arguing that 
its offer would keep Merhfien in 
French hands. 

Accor’s pressure prompted a 
delay in the sale process, which 
was launched in April when the 
two companies tabled their origi- 
nal bids. Both companies' 
increased their original valua- 
tions of Meridien by about 
FFrloOm in an attempt to gain 
control 

Mr Christian' Blanc, ifliainTwm 
of Air France, said Forte’s offer 


was accepted became of financial 
considerations. The French air- 
line is seeking to raise capital 
and -reduce debts as part as a 
rescue package aimed at curbing 
losses which amounted to 
FFr8.48bn last year. The Euro- 
pean Commission ordered the air- 
tine to dispose of Meridien by the 
end of the year as a condition for 

Continued on Page 14 
Lex, Page 14 
Battle for Meridien, Page 15 
. Savoy results. Page 22 


UK employees top EU table 
of 48-hour working weeks 


By David Goodhart, 

Labour Editor, in London 

Nearly half of the 7m male 
employees in the European 
Union working a 48 hour week or 
more are employed in the UK, 
according to the annual Employ- 
ment in Europe report published 
yesterday by the European Com- 
mission. 

The report’s figures on working 
time in the EU help to explain 
the UK's strong resistance to 
the European working time direc- 
tive, passed earlier this year, 
which places strict controls on 
working more than 48 hours per 
week. 

Between 1983 and 1992 average 
hours usually worked per week 
declined by just under 4 per cent. 
By far the largest reduction was 
in the Netherlands, where aver- 
age hours fell by 13 per cent. 
By contrast, in Italy and the UK 
the fall was only 1 per cent or 
less. 

On unsocial hours, the report 
found that in 1992 7 per cent of 
men in the EU and 3 per cent of 


women worked at night, with 
another 11 per cent of men and 5 
per cent of women sometimes 
working at nighL Almost half the 
men employed in the EU have 
jobs which involve them working 
on Saturday at least some of the 
time. 

The Commission report takes 
issue with the high levels of 
part-time work reported by some 
countries. Defining part-time 
work as 10 to 29 hours a week, 
the Netherlands has only 36 per 
cent of women working part-time 
- rather than the 59 per cent 
claimed - and the UK has 33 per 
cent as opposed to the 44 per cent 

rlalrrmri 

But the UK is the only EU 
country which has non- wage 
labour costs which bear less 
heavily on low-paid workers. The 
report also implicitly backs the 
UK government’s arguments 
against a minimum wage by stat- 
ing that “low pay {in the UK] is a 
relatively minor source of pov- 
erty levels of income". 

Overall poverty is associated 
with low pay. hut in Belgium, the 


Netherlands. Ireland and the UK, 
being out of work is the main 
cause of poverty. 

Other points in the report are: 

• More people in the EU are 
now employed in construction 
than in agriculture. And almost 
as many people are employed in 
business services - the biggest 
growth sector between 1985 and 
1992 - as in agriculture. 

• In Germany and Spain 90 per 
cent of the unemployed find jobs 
through public employment ser- 
vices. In the UK and Portugal the 
figure is less than 30 per cent and 
in Greece less than 10 per cent. 

• In Belgium 63 per cent of any 
increase in labour costs goes to 
the state. In other words, the 
total cost of raising an employ- 
ee's pay is nearly three times the 
addition to their net pay. 

• la general, exchange rate 
movements rather than differen- 
tials in productivity or wage rises 
have been the major determinant 
of the cost competitiveness of 
European producers. 

Job mobility challenged. Page 2 





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FINANCIAL TIMES THURSDAY SEPTEMBER 15 1994 


NEWS: EUROPE 


Major 
puts UK 
view to 
Santer 


By Kevin Brawn, 

Political Correspondent 

Mr Jacques Santer, the 
federalist president-designate 
of the European Commission, 
got bis first formal lecture on 
the importance of the nation 
state yesterday from Mr John 
Mqjor, the British prime minis- 
ter. 

Mr Santer, who takes over 
from Mr Jacques Delors in the 
New Year, spent a couple of 
hours absorbing the British 
view in the third of a series of 
meetings with EU heads of 
government 
The meeting was described 
as “friendly.” but the tone was 
markedly different to that dur- 
ing Mr Santer's earlier stop- 
overs in Ireland and France. 

Mr Major emerged from the 
meeting at his country retreat 
to stress Britain's long objec- 
tion to moves towards a single 
currency at the next inter-gov- 
ernmental conference In 1996. 

“I don't think the 1GC in 1996 
has anything to do with a sin- 
gle currency.” Mr Major said, 
confirming the British view 
that the issue of monetary 
union was settled in the Maas- 
tricht treaty. 

Mr Major won some support 
from Mr Santer for his objec- 
tion, forcefully expressed in a 
speech in The Netherlands last 
week, to proposals floated by 
the German CDU party for a 
core union of five or six mem- 
ber states, excluding Britain. 

Mr Santer said it was impor- 
tant for all 12 member states to 
move forward together. How- 
ever, he also said that all 12 
should achieve the objectives 
set out by the Maastricht 
treaty, which include economic 
and monetary union. 

This would conflict with 
Britain’s preference for a union 
of “variable geometry”, in 
which the member states 
would be free to reject develop- 
ments outside core areas such 
as the single market 
British officials said that Mr 
Major had made clear Britain’s 
view that the union should 
concentrate on subsidiarity, 
deregulation, free trade and 
enlargement rather than the 
destruction of the nation state. 


Conventional view on labour mobility not borne out by Commission report 

Flexibility ‘no answer to jobs crisis 


By David Goodhart, 

Labour Editor 

I ncreased labour flexibility 
and higher job turnover 
provides no simple solution 
to Europe’s unemployment 
problem, the European Com- 
mission declared yesterday in 
its sixth report on Employment 
in Europe. 

The report challenges the 
conventional view that ease of 
movement into and out of jobs 
is a necessary condition of low 
unemployment 
About 17 per cent of people 
in work in European Union 
countries were not in their 
present job one year ago. But 
countries which have above 
average labour turnover, 
including Spain, where 28 per 
cent were In a new job. Den- 
mark, the UK and the Nether- 
lands, represent both ends of 
the unemployment spectrum. 

Spain, for example, has the 
highest level of unemployment 
in the EU and both the UK and 
the Netherlands are now below 
the average. 

Similarly, at the other end of 
the mobility scale, the rate of 
turnover was under 13 per cent 
in Greece as well as in Italy, 
and only around 15 per cent in 
Belgium. Germany and Luxem- 
bourg. which also represent 
wide variations in unemploy- 
ment rates. 

The report, which picks up 
many of the themes first dis- 
cussed in the Delors white 
paper on employment pub- 


lished last year, concludes that 
countries with a low level of 
external labour market flexibil- 
ity may compensate with 
higher flexibility within com- 
panies. 

The report also reflects the 
white paper's concern with 
high non-wage labour costs in 
Europe and the relatively poor 
employment creation record 
compared with the US and 
Japan. Social contributions in 
the EU averaged 22 per cent of 
labour costs in 1991, only 
slightly above the US figure of 
21 per cent while the Japanese 
figure was 15 per cent 

However, if employer and 
employee contributions, plus 
taxes on wages are added 
together, the average “wedge" 
- between the cost of employ- 
ing labour to companies and 
the net earnings which work- 
ers receive - is 45 per cent in 
the EU, 40 per cent in the US 
and 30 per cent in Japan. 

Hie report says that in nine 
out or 12 EU countries the non- 
wage labour costs imposed by 
government bear proportion- 
ately more on workers at the 
lower end of the earnin gs scale 
than nn th oW at the hi gher 
end. But the UK is a notable 
exception. 

“The only country where dif- 
ferential contributions provide 
any incentive for employers to 
take on lower paid workers is 
the UK,” states the report 

The UK government may 
also draw some comfort from 
the fact that incentives to work 


UK leads the lon g e r boo r s teagoe 

Men working 48 hours a vveefc or more (94 of men employed) 
Netherlands 



Source Empaen ©ammsaon 


are in good order. Unlike most 
EU countries low pay is a rela- 
tively minor source of poverty 
in the UK. 

“Overall in the EU. there are 
more households which fall 
below the poverty level of 
expenditure because of low pay 
than because of unemployment 
or disability. Only in four 
member states - Belgium, the 
Netherlands, and most espe- 
cially, Ireland and the UK, 
where being out of work was 
the major source of poverty - 
was this not the case.” 

Between 1985 and 1992 busi- 
ness services made the largest 
contribution to employment 
growth across the EU, account- 


ing for almost one in five of 
the net addition to jobs. But 
high job losses between 1990 
and 1992 occurred in many of 
the former high growth areas 
including estate and travel 
agents and research and devel- 
opment fnst i t iitog . 

The areas of job growth in 
the EU over the past 20 years 
have been much the same as in 
the US and Japan. “The most 
striking difference is not in the 
areas where employment has 
risen, but in terms of the scale 
of jobs losses which have 
occurred in declining sectors 
(particularly agriculture). This 
seems largely responsible for 
the lower overall rate of 


employment growth in the EU 
than elsewhere.” 

Professional and technical 
jobs, which accounted for only 
15 per cent of the total in 1983. 
were responsible for 40 per 
cent of the rise in employment 
between 1987 and 1992. 

But there are still marked 
variations between countries 
in employment structure. In 
Germany, for example, 50 per 
cent more of the workforce are 
employed in engineering and 
motor vehicles to an elsewhere. 

Germany also continues to 
have a relatively small propor- 
tion of its workforce in ser- 
vices. It is sometimes 
suggested that this is a statisti- 
cal (B oston that much the 
same jobs are performed in 
Germany as elsewhere but 
they are located in industrial 
companies rather than speci- 
alised services companies. The 
report maintains otherwise. 

“Fewer service activities are 
performed in Germany than in 
other comparable European 
countries - or, at least, fewer 
people are employed which 
might possibly be the result of 
higher productivity in services 
in Germany than elsewhere.” 

Most of the people employed 
in the EU now work in small 
companies, hi 1991, companies 
with fewer than 100 employees 
accounted for 55 per cent of 
those employed in the EU ar,r * 
companies with under 10 
employees for about 30 per 
cen t. This is much the bum as 
in Japan. 


Brussels switches tack on industrial policy 


By Lionel Battier In Brussels 

The European Commission 
yesterday unveiled a new-look 
industrial policy which aban- 
dons once-cherished notions 
such as national champions 
and sectoral protection in 
favour of life-long vocational 
training, global strategic alli- 
ances, and an aggressive com- 
petition policy. 

The recommendations are 
spelt out in a report on indus- 
trial competitiveness which 
offers evidence of new thinking 
in Europe in response to 
mounting competition from, the 
US and East Asia. 


Mr Martin Bangemann, the 
EU Industry commissioner, 
added spice to the report with 
a call for a shake-up in EU and 
national bureaucracies to end 
excessive bureaucracy and 
unnecessary delays for busi- 
nesses seeking licences for new 
products. 

“Some of the delays are 
unbelievable. Take biotechnol- 
ogy. Two years to wait for 
administrative procedures is 
too long. Even if you get the 
right decision, you miss the 
market opportunity," he told a 
news conference in Brussels. 

The Commission report is 
striking for its advocacy of a 


tough competition and regula- 
tory policy to complement its 
call for greater liberalisation 
and deregulation in Europe. 

Mr Bangemann cited the 
Commission’s recent approval 
of the BT-MCI alliance to pro- 
vide global telecom services to 
multinational companies as an 
example. While the deal could 
be interpreted as restricting 
competition in a narrow sense, 
it was vital to view the deal in 
the context of the global mar- 
ket, he said. 

Other officials said the Com- 
mission was pressing for an 
agreement with the US and 
Japan on how to vet the 


imfoTrling strategic affiances in 
telecommunications and 
ensure a level playing field. 
The hope is that a common 
position nan be reached within 
the World Trade Organisation. 

The Commission report also 
calls for a fresh look at state 
aid criteria. One idea is to 
apply general rather to an sec- 
toral rales, but Mr RangProaTm 
conceded yesterday that this 
idea was too radical for most 
fellow commissioners ; and 
member states. 

The report calls for a more 
“rigorous and neutral” 
approach to state aid, with 
tougher application of the 


rules in richer member states. 
However, the recent approval 
of $3.7bn (fit38bn) restructur- 
ing plan for Air France, the 
ailin g national flag carrier, 
imriffriinns that tin* is easier 
said than done. 

In the area of international 
tra de , the paper said the EU 
should establish an “industrial 
assessment mechanism” to 
analyse why the EU is perform- 
ing badly in markets where it 
should be strong. 

An industrial competitiveness 
policy for the European Union. 
Directorate UJ, Rue de la Loi, 
200. B-1049 Brussels. 


World class 


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WEST EUROPEAN NEW CAR REGISTRATIONS 
January-August 1994 



Vohme 

Volume 

ShamftU 

Share (%) 


(Unftd 

Change^} 

Jan-Aug* 94 Jan-Aug* S3 

TOTAL MARKET 

8,517,000 

+00 

1004) 

1000 

MANUFACTURERS: 

Volkswagen group 

1,368,000 

+43 

1IL1 

103 

- Votkawager 

882300 

+1.8 

10.4 

103 

- Seat 

224.400 

+18.4 

2 A 

24 

- Audi 

222.000 

+1.8 

23 

27 

- Skoda- 

41,000 

+11.8 

OS 

05 

General Motes* 

1394300 

+5.1 

128 

134) 

- Opd/Vourfwll 

1,048.000 

+4.4 

128 

125 

- Saab" 

36,000 

+35.3 

0.4 

0.3 

PSA Peugeot Citroen 

1363300 

+11.6 

127 

121 

- Peugeot 

651.000 

432.000 

+1(13 

7.6 

73 

- Citroen 

+135 

5.1 

4.7 

Ford group* 

1/M4/M0 

♦AS 

11-8 

113 

- Ford 

997.000 

+5l9 

1 1.7 

11.7 

- Jaguar 

7,000 

-9.9 

0.1 

Ol 

Flat group## 

946300 

+00 

11.1 

11.1 

- Rat 

738,000 

+10.1 

8.7 

8.3 

- Lancia 

119,000 

-45 

1-4 

15 

- AMs Romeo 

78,000 

-105 

OS 

1.1 

Renault 

918 JOOO 

+aa 

108 

105 

BMW group 

543,000 

+&3 

04 

04 

- BMW 

269,000 

+2.7 

33 

35 

- Rover 

274.000 

+39 

02 

3.1 

Mercedes Benz 

288,000 

+345 

34 

27 

Nissan 

275300 

-45 

32 

26 

Toyota 

213,000 

-4.1 

23 

28 

Volvo 

137,000 

+17.5 

1 3 

15 

Mazda 

127,000 

-105 

13 

13 

Honda 

121,000 

+6.1 

14 

14 

Mitsubishi 

84,000 

-17.2 

1.0 

13 

Suzuki 

52,000 

-24.8 

06 

03 

Total Japanese 

827,000 

-7 A 

109 

125 

MARKETS: 

Germany 

2319.000 

-03 

26.1 

27.7 

Italy 

1,284,000 

-25 

15.1 

104 

Franca 

1 £97,000 

+14.7 

102 

14.1 

United Kingdom 

1 .443,000 

+93 

109 

104 

Spain 

620,000 

+20.4 

73 

04 

•VWhdH* 31 par amt and am 





MM cm trmonad •»» KMKUn Mtoi 
-OH he*ti 50 par em* and managa m eM eontnl at i 
n Ft* grot*. Muon lands. Ab Rama tvaooMt J 
Souca : ACER fEmpeon t 


Fiat row hits new 
car sales data 


By Kevin Done, 

Motor Industry Correspondent 

Disagreement between Fiat, 
tbe Italian car producer, and 
rival European carmakers 
importing cats into Italy, has 
created confusion over tbe pub- 
lication of new car sales fig- 
ures in Italy. 

Tbe conflict, exacerbated by 
tbe inability of tbe Italian gov- 
ernment to provide prompt 
information on new vehicle 
registrations, is undermining 
the disclosure of west Euro- 
pean new cars sales data. 

The traditional arrangement 
between the two Italian motor 
industry trade associations - 
Anfia for the domestic industry 
and Unrae for the importers - 
for the exchange and joint pub- 
lication of sales figures has 
broken down. 

The Anfla/Onrae figures, 
which report wholesale deliv- 
eries to dealers rather than 
domestic registrations, have 
become increasingly unrelia- 


ble, as they are distorted by 
the high volume of cars being 
reexported from Italy to neigh- 
bouring countries. 

Fiat has insisted that the 
task of reporting sew car sales 
should be banded over to the 
Italian government, but the 
Transport Ministry is still 
struggling to provide quick 
and accurate registration data. 

Traditionally the govern- 
ment has required 3-4 months 
to produce the data, but the 
Italian motor ind ustry is 
hopeful that this can soon 
be reduced to less than 10 
days. 

According to estimates 
released by Acea, the Euro- 
pean Automobile Manufactur- 
ers Association - using a com- 
bination of registration and 
wholesale figures for Italy - 
overall west European new car 
registrations rose by only 0.8 
pa- cent year-on-year in July to 
915,000, while registrations in 
August rose by 4.7 per cent 
year-on-year to 1.081m. 


EUROPEAN NEWS DIGEST 

Pilots’ strike 
hits Air France 

Pilots at Air France are to strike tomorrow and Saturday after 
talks on productivity broke down. The strike Is a setback for 
Mr Christian Blanc, Air Fiance's chairman, who wants to 
raise productivity by 30 per cent by 1997 as part of a rescue 
package- Last year, the ailing stateowned earner suffered 
losses of FFt8.48bn (£l.Q2bn). The SNPL pilots union opposes 
ptang to cut flight bonuses while Mr Blanc claims the. pilots’ 
counter proposals on productivitywould increase average pay 
by about 10 per cent “No company, even the most flourishing 
can allow that today, and Air France is not flourishing,'’ he 
said in a letter to the union. Air France said it could guarantee 
about a third of medium-range international flights tomorrow 
and Saturday and hopes to run more tong-range flights. The 
SPaC, tbe second and smaller pilots' union, is also taking 
action. John Ridding, Paris. 

OECD rivalry intensifies 

Ambassadors of the 25 members of tbe Organisation for Eco- 
nomic Cooperation and Development met yesterday and again 
to resolve tbe Ftanco-Canadian rivalry for tbe secretary- 
generalsbip , increasing the prospect of no decision before the 
term of the French incumbent, Mr Jean-Claude Paye, ends on 
September 30. Hie only new development tins week came with 
the withdrawal of Mr Lorenz Scbomerus. the German candi- 
date who been holding up the rear of the pack in the race. 
This probably gives one further vote to Mr Paye, who is 
running for a third five-year term and who may now have a 
majority of OECD governments behind him. However, the 
OECD takes decisions by consensus, and the US has so for 
given no indication of withdrawing its strong support for the 
Canadian candida te, Mr Donald Johnston. Washington argues 
it is time for the organisation to be run by a non-European, 
and has brought Japan, Mexico. Australia and New Zealand 
into the Johnston camp. David Buchan. Paris 

Gonzalez submits to questions 

Mr Felipe Gonzalez (left) yes- 
terday took a leaf out of the 
British parliament's book 
when he inaugurated a prime 
minister’s question time, but 
his answers dealt a blow to 
his government's efforts to 
engineer a restrictive budget 
In his first appearance in 
what mil be a weekly 15-mln 
ute interrogation by the lower 
house in Spain's Cortes. Mr 
Gonzalez effectively promised 
that pensions would be 
indexed to inflation. He said 
that while he was in govern 
ment there would an 
“extraordinary payment” to 
pensioners when their income 
was overtaken by price rises. The commitment will place a 
considerable burden on the government's economic team as it 
tries to craft a budget that will reduce the public deficit next 
year to 5^ per cent of GDP, down from 63 per emit this year. 
The question time forms part of an effort by Mr Gonzdlez to 
regain the initiative following strong gains by the opposition 
conservative party in June's European elections. Since he 
gained power in 1982, the prime minister has only attended 
major parliamentary debates. Tom Bums, Madrid 

Germany can keep PCP ban 

Germany can continue its ban on pentachtorophenol (PCP), 
tbe disinfectant used for wood preservation and textile treat- 
ment, the European Commission said yesterday. The ruling 
will appeal to ecology-conscious Sweden which is about to 
hold a referendum on EU membership. It maim countries can 
apply higher environmental Stamfords than their EU partners 
in selective areas, despite tbe general requirement for harmon- 
isation in the internal market Last May, the European Court 
of Justice declared void the original Commission decision to 
uphold Germany's PCP ban. It was the first Court ruling on 
the application of treaty legislation allowing exemptions from 
EU legislation on the internal market Yesterday, the Commis- 
sion justified its second decision by referring to unusually 
high PCP levels in Germany. Lionel Barber, Brussels 

Czech coffee ‘cartel’ fines 

The Czech economic competition ministry has imposed “signif- 
icant” fines on two local coffee market leaders for using what 
it calls cartel-style tactics to raise domestic coffee prices. The 
ministry has started legal action against the Grech Coffee 
Union (CKS), an industry lobby group, and two of its mem- 
bers, Tdubo Praha and Balirny Douwe Egberts, accusing them 
of coordinating a policy of gradually increasing prices. In 
July, the CKS asked domestic producers to raise coffee prices 
by 10 per cent monthly to fell Into line with the general surge 
in world prices caused by two severe frosts which ravaged 
plantations in Brazfl. Local packager Balirny Douwe Egberts, 
a subsidiary of Dutch-American firm Douwe Egberts, 
increased its prices by 10 per cent at the start of July, as did 
the local market leader, German retailer Tchibo Praha. 
According to the ministry, domestic coffee prices have now 
increased by more than 50 per cent since the CKS issued its 
request. Between t he m. Balirny Douwe Egberts and Tchibo 
Praha are reported to hold 75 per cent of the Czech coffee 
market Reuter, Prague 

Lukoil seeks western investor^ 

Lukoil, Russia’s biggest oil producer, plans to float shares on 
western stock exchang e s once domestic privatisation is com- 
pleted next year, the company vice-president Mr Vladislav 
Bazhenov, said yesterday. The company has discussed pros- 
pects for floating shares in New York or London with 
exchange officials and Mr Bazhenov said foreign investors had 
shown interest However, foreign listings might be a tong wav 
off as tbe company's books would probably have to be exam- 
ined by an international auditing firm. 

Reuter. Moscow 

ECONOMIC WATCH 



-U unemployment falls 


Elf unemployment 


iota — 


me 


Seasonally adjust 
unemployment in July in I 

10.8 per cent. Th? fall « 
P artlc u]arly apparent amc 
women of all ages, and a 
below 25. Total female ime 
Ptoyment fell by 0.4 of a p 
cetrta « e point to 12.4 per ce 
compared to the male rate 
9.6 per cent. Male you 
unemployment fell to 18.6 1 
— cent, down 0.4 of a percents 
pomt, while total you 
unemployment fell from j 
1893 04 cen fc 19.6 per cent T 

Source: tatet. ■ ■ JJJL countries whi 

ment were Denmark (from 104*2 

Nethertands (9.7 per cent to 9 m ‘ 

youth unemployment were recorded in B^u^l^cS? 8 

• West German wholesale jufoesrose 

from July, up 22 per cent EffntiX 

Statistics Office reported. y eartjer * Fedei 

• Spain's central bank announced that 

on target during the first eight monthfafSTS EZSj 1 ! 
per cent during the year until September M4 erew by ! 


104 


102 


193 



ff 


3 


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Energy crisis deepens 
for ex-Soviet states 


By John Lloyd In Moscow 

An energy crisis more severe 
than any since the collapse of 
the Soviet Union now threat- 
ens Russia *y( its neighbour- 
ing states - as an oatpot and 
inter-enterprise debts in Bnssia 
continue to worsen and the 
other members of *h» Com- 
monwealth of Independent 
States sinir deeper into debt to 
Russia for energy snp pSes. 

Mr Yuri Sbaframrik. the ofl 
minister, the pay- 

ments crude in the industry, 
meant that preparations for' 
the autumn and winter surge 
in energy use were "strained". 
At tho b ^ b times, increasing 
dpht g fo Prussia fn fTIr raww* an/1 

Belarus now threaten the pro- 
vision of oQ and gas to these 
hard-hit states. ... 

Mr jdutftwmriTr ' fold a meet 

faff nf a pwnwnmpnh ■WHwittBfr 

on the dayioday running of 
the economy ofl n ntp pt in 
the first seven months -of the 
year was down by an average 
of 62,000 tonnes a day on the' 
same period last year, and 
'Jt 4.73m down on the planned 
u level for that period. The min- 


ister expects the outturn of the 
year to be 29U9m tonnes of oil 
and . gas condensate - 6-Sm 
tnrnwx itMBt than the forecast 
level and just over 60m tonnes 
dawn an last year's estimated 
production . level of 853m 

tnm>As . # j. . 

In the wfliwwt. worst hit by 
the debt., crisis, only 1045m 
tonnes were refined with a 
planned level of 128An tonnes. 
Mr ShaframriK said that 28.4 
per cex&qf ihe off wells in Ros- 
oa woe standing irila 

.With Russia 'a nil and gas 
supplies increasingly directed 
towards western hard currency 
markets, the drop in output 
seems certain to mean a fur- 
ther cut in the already rela- 
tively meagre energy exports 
to the GS countries - reduced 
last year to 57.5m tonnes from 
X U91 level of isan tonnes. 
Gasprctm, title state mono- 
ply, warned yesterday wed that 
it would further cut gas sup- 
plies to regions of Ukraine 
because of nonpayment of 
back debts. • 

Gasprom last week cut sup- 
plies to Mmiupol in the 
Donetsk region by more than 


The position in the other 
republics is generally worse - 
with the two Caucasian repub- 
lics of Georgia and Armenia 
unable , to pay for the supplies 
they presently receive and 
which are wmsfamtly under 

thrwit 




Swedes offered few 


By Christopher Brown-Humes 
in Stockholm 


and heavy tending, cestoft is 
aj*n an unprecedented t rauma 
in a country with fittle experi- 
ence of unemployment. The 
cqtndiy’s currant plight repre- 
sents one of the fog gra* ten- 
ures of the Swedish model 
wttch was supposed to deKver 
job security, in- retain for 
labour market restraint 

The multinationals laid off 
as many ‘as 20 per cent of their 
employees between 1991 and 
1993 to.improve^ productivity 
and" regain co mpetitiven ess. 

Wfth the economy recover- 
ing, there is dear evidence 
that unemployment is past its 


■mm 


- ~ Some Swedish country’s c ur re nt plight repre- 

\ companies aents one of the biggest tefl- 
ivXi'Vi used to employ tires of the Swe^sb model 
per cent .which was^ supposed to ddiv» 
Wf more staff than job security in return for 

IK -mHR they needed labour market restraint 
k/ 'fl g jiut to cover The multinationals laid off 
■k Jnfltf for those who as many as 20 per cent of their 
H did not turn up employees between 1991 and 

to work on a 1993 tp . lmprove^preductivity 
particular day and" regain co mpetitivufl ess. 

▼ : During ... the. .. . flftth the economy recovar- 

SWEDISH three-yeair ing, thde is clear evidence 
ELECTIONS recession, that unemployment is past its 
Oontomh™- m Absenteeism., peak. But 600.000 people are 
aepmmDar — declined dra- still out of' work,' including 
maticaBy and a shakebut in . those on Gaining schemes. 
companies helped to <speed_ig> u JC»st year the problem cost 
the increase ip unemployment . Sweden SK r 32bn (£6J9bn), or 
■ fo the iiinrifo 'tq7.^e^eii?. , 5.7Xer' ceiff of .GDP,' IeyeP 
election an Sund^ leym the^. exceeded hyJSflanil and 

optimists have^aciepted that' Etemnarir in .the OECD area, 
the country will never .and accounted for nearly half 

to the halcycm dayst^tiiB late. tfm^i^re bQd^ drilcit 
1930s when of the parties is aCEer- 

below 2 per cent. Allbqtt^i . ggdemafa or easyaolnticm. 

. much of the dedtat camp^^rrlTli^/Socifll Democrats, who 
has centred on the state" qf-Sp f-’ look.lftely to return to power, 
public finances, rammploymebt have detaDed a specific pro- 
has been a recurrent theme hr. . tor creating 90J0Q0 

public meetings and in the vid- ^ now jobs,_in. their first year 
stugas - the street comer huts T offioe,' emphasising infra- 

erected in their thmiaands by " structure programmes and 
political parties at election favourable tax tre atm e nt for 






time. 

Sweden’s unemployment has 
soared to 14 per cent (including 
those on training schemes) 
from below 5 per cent in just 
three years. This has played 
havoc with state finances- 
because of lower tax revenues 

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ited Number One Soatiiwarfc Bridge. 
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D.CM. BcJL 



iuvesfaients. The nfoig cemtt*- 
right. . coalition wants to 
improve the overall business 
efimate, saying it can create 
500,000 new private sector jobs, 
by the end cf the century. 

What mates the parties is a 
common acceptance -that the 
new jobs wfli have to be found 
in the private sector. This in 
itself is a breakthrough in a 
country which saw all of its 
employment growth between 
1960 and 1993 derive from the 
puhlic sector. 

What <ti<rtfogiTfch<»B the pro- 
grammes is emphasis. The 
Social Democrats believe 
active government policies can 
have an impact, even in the 
short term. But they differenti- 
ate companies hum their own- 
ers, giving the former' much 
more favourable tax treatment 

Government policies are 
more long-term, and there is 
more stress on providing 
incentives for the start-up of 
new business. 

One reason for urgency is 
that Sweden wants to tackle 
long-term unemployment 
before it becomes entrenched. 
This is why the Social Demo- 
crats reject the type of tough 
fiscal and monetary strategy 
pursued by Denmark in the 
1980s because they say it has 
led to a permanently high level 


■floiril* i 


of long-term unemplo y me n t If 
they act how, they believe, 
'they can" 4&J0 labour' m ar ke t 
bottlenecks stimulating infla- 
tion when unemployment falls, 
to a certain level, the socaDed 
nonaccelerating inflation rate 
of unemployment 

Ms Mona Sahlm. the Social 
Democrats' party secretary, 
says: “Everyone knows that 
the longer people are doing 
nothing the harder it is to get 
them back into the workforce. 
We must avoid long-term struc- 
tural unemployment" 

Backing up this emphasis, 
her party aims to ensure that 
young people are not out of 
work fin- more than 100 days. 

There is a belief that the 
upturn in the economic cycle 
will at least get the unemploy- 
ment figure down to half its 
current leveL But will it? 

05 experience suggests that 
most job creation in a modern 
western economy comes from 
services. And It is here that 
Sweden clearly has further to 
go, partly because there is a 
cultural resistance to the cre- 
ation of a low-wage service sec- 
tor. Opponents say pejoratively 
that they don't want to turn 
the country Into a I920s-styje 
“maid" society. 

There is also resistance to 
any further lowering of unem- 
ployment benefits, which have 
already been cut from 90 per 
emit to 30 per cent of former 
salary. Mr Lars Jagren, an 
economist with the Federation 
of Swedish Industries, believes 
Sweden wflZ have to look again 
at both wage differentials and 
unemployment benefits if It 
wants to make real progress on 
unemployment. 

“We have stiB not solved the 
crisis,'’ he believes, “because 
we have still not accepted the 
changes needed to avoid 
long-term unemployment." 


brazil 95 : business Opportunities in an Environment 

OF ECONOMIC STABILISATION 

GAZETA mercantil seminar 

To commemorate the opening of BB Securities Udme^nco do Bran's 
international securities sales, and to analyse the prospects of the Brazilian 
economy following the Real Plan stabilisation program. ^ . 

Chaired by HE Rubens Barbosa, Brazilian Ambassador . to the Umted 
Kincdom the seminar will feature senior government officiate, including Padro. 
ESTis central Bank and Alcir Calliari, Chairman of Banco, 
do Brasit and BB Securities and leading economists Paulo Renato Costa 

OnThuredav 6 October 1994, at THE MERCHANT CEhnRE,New 
iSSl EC4A 3JB, from 2.30 to 5.30pm, followed by coctols 
Monrmcn end Region, Ms. C^ Sm, BB Secures - Uxrton. 

I Tel: +44 (0)71 216 4200 

| Fax: +44 (0)71 216 4206 


Bundesbank ‘shifts into neutral’ 

Andrew Fisher and Martin Wolf on a likely halt in Frankfurt to cuts in interest rates 


half to 100,000 cubic metres of 
gas a day. and yesterday 
wanted it would immediately 
cut supplies to the Kharkov 
region by 40m cubic metres a 
day. According to the Interfax 
news agency, Ukraine agreed 
to pay 3340m in August and 
September for gas supplies, but 
paid only 30 per cent of the 
amount. . 

In Belarus, Mr Stanislav Bog- 
dankevich. of the 

central bank, told the Tass 
news agency that the state 
owed Russia Rbsl,000bn 
(£309 .6m) for energy supplies 
and that the debt was rising. 

He said that Russia had pro- 
posed the debt be paid by 
goods' and industrial produc- 
tion, i 1 ” 1 ! by shares in Belarus- 
sian enterprises — but «wfd that 
a schedule of payments by this 
kind of barter had not been 


T he Bundesbank has 
decided to stand firm 
a gairait farther cuts in 
its key interest rates for the 
- time befog, with the next 
move, which may. well be 
delayed tmtii nest year, as 
likely to be up as down. The 
fortn ightly meeting of the Ger- 
man central bank’s policy-mak- 
ing council today iflmot expec- 
ted to make any ehqnges to 
I moratory policy.; ■ . : 

Remarks by Ifr Johann wn- 
i h+frft Gaddum, the Bundes- 
bank’s deputy president, give 
tire vmprpiadtY^ ‘the 
di. fontiTrt and Lombmd rates - 
■L5 per cent and 6 per cent 
respectively - are set to stay 
put for some months. The 
same may also apply to tire 
repurchase (or “repo") rate, 
which has been fixed at 4AS 
per cent since late July. .; 

MaTfing rlturr that the central 

bank stfll holds fast to its 
money supply target, although 
its M3 goal fa** 3 little rihaiy ** of 
being reached tins year, he 
said it was important to aBay 
concern to band markets about 

German inflation. The D-Mark 

rf y wn gt'hmwri on Us rnmmwifct 

“We have no reason to' 
swerve from our stability-ori- 
ented policy," he Raid m Frank- - 
fort on Tuesday night The lat- 
est strengthening of the 
economy had occurred amid, 
interest rate conditions previ- 
ously thoug ht to be too s tria - 
gent but “fids shows that they 
were not too stringent”, ha 
said. 

Thus, he added, “There is no 
reason in such a situation to 


Germany: 


moMy supply overshoots 




I i&mli 


iss -- 19,0 
fit; 1 *» 

||f£i £ *E±s ^ ,85D 

™ 




take steps that could raise 
tears that the Bundesbank is 
setting the rudder in a direc- 
tion that would be understood 
as expansionary." 

He also dismissed any sug- 
gestion that the Bundesbank 
could try to pacify markets by 
setting Its next securities 
repurchase rate - the bank 
refinancing transactions 
through which it steers money 
markets - at 180 per coot 
instead of 4JS5 per cent, the 
level at which it yesterday 
flnnminffwi a farther tender. 

“This would provoke the 
question - “why 480 instead of 
485 per centT This would be 
difficult as it would have to be 
justified and it could not be on 
the bas is of developments in 
the money supply." 

The last cut in rates was in 
May, when the discount and 
Lombard rates came down by 


1111 

ft- A::j& 


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half a percentage point That 
cut was made to help move the 

ltewnttiag of hanks a Way fitHD 
short-term deposits (included 
in M3, the broad monetary 
aggregate) into longer-term 
funds. 

This reason no longer 
applied, said Mr Gaddum. The 
latest M3 data showed a slow- 
down in growth, though the 
rate of increase was still 9 A per 
cant in August, well above the 
target range of between 4 and 6 
per cent for 1994 Thus, said Mr 
Gaddum, the MS trend was 
“still sa tis fac t o r y **. 

Some economists in Frank- 
fort charge the Bundesbank 
with having strayed too far 
from its traditional adherence 
to money supply objectives. 
They say any fixture moves in 
interest rates should he 
upwards. 

The Bundesbank would prob- 


ably choose the first quarter of 
next year to decide when to 
tighten, said Mr Thomas 
Mayer, Goldman Sachs’ Fiank- 
furt-based economist. "A fur- 
ther cut cannot be ruled out, 
but it is very unlikely." 

Mr Gaddum’s comment 
showed, he added, that "the 
Bundesbank has shifted its 
gears into neutral". 

Other members of Bund- 
esbank's seven-man directorate 
- the core of its policy-making 
council - also feel there is no 
need for Anther rate cuts after 
those in May helped decrease 
the annualised rate of M3 
growth from an alarming 15.4 
per ceit in March. 

At the same time, there 
should be no need to raise 
interest rates to curb credit 
growth either, they argue. 
Tvwng to finance housing 
construction, previously stimu- 


lated by the impending 
removal of tax breaks, are 
growing more slowly, industry 
demand for credits will rise as 
the economy recovers, but the 
effect on credit expansion 
should be moderated by com- 
panies' improved cash flow. 

Some e con omi s ts also argue, 
oa the bads of revisions to eco- 
nomic statistics for the previ- 
ous two years, that economic 
overheating after the post-uni- 
fication surge in growth was 
greater than thought. So last 
year's downturn merely 
brought the economy beck on 
to its longer-term trend. Corre- 
spondingly, there is no signifi- 
cant economic slack, particu- 
larly after the unexpectedly 
large jump of 1 per cent m 
gross domestic product during 
the second quarter of 1994 

These economists expect that 
the Bundesbank - with some 
dissenting voices from the 
regional governors on the 
council - will regard this as 
another reason not to lower 
interest rates further. They 
expect It to Incline towards try- 
ing to bring Inflation down 
from the August rate of 3 per 
cent towards its goal of 2 per 
emit, particularly in view of 
the 0.2 per cent rise in whole- 
sale prices in August over 
July, announced yesterday. 

Mr Gaddum spoke sternly 
and robustly about the Bundes- 
bank's commitment to curbing 
prices and pursuing money 
supply goals. “M3 is still the 
most important Indicator - not 
the only one, but the most 
important one," he said. 


Polish central bank in row over rates 


By Christopher BoblnsW in Warsaw 

The Polish government has taiimi on 
the c o u n try ’ s central bank to lower 
interest rates and attacked the hank’s 
recent dectsian to lower the adjustable 
monthly devaluation rate ~ which 
devalues the zloty in order to keep 
cxffifrt s c omp e titi ve - from L6 per cent 
roTJi per emit. 

/.A government statement issued am 
Tti&day night deepens a row over how 
best_to deal with growing foreign cur- 
rency inflows which are inflating the 
money soppily and increasing Inflation- 
ary pressures. 

It came as senior western commer- 


cial bankers gathered hi Warsaw to 
sign formally a deal reducing Poland's 
$14bn (£9bn) commercial debt by 49 J 
per omit which could 
produce capital inflows worth more 
than Hbn a year. Poland’s net foreign- 
debt stood at |44bn at the end of last 
April. 

At the same time, Poland’s forefen 
reserves have grown to around gllbn, 
largely because of a rise in exports to 
Germany. Capital inflows from cross- 
border trading, including hard cur- 
rency from citizens of the former 
Soviet Union who come to Poland to 
purchase consumer goods, have also 
swelled reserves. The resulting growth 


in money supply has led the central 
bank to refuse to make the 1 per cent 
interest rate cot which the go ve rnment 
is now openly demandng. 

“High real interest rates are putting 
a brake on the country’s economic 
development,” the government said 
after a cabinet meeting an Tuesday. 

The bank says, however, that infla- 
tionary pressures leave it no room to 
cut rates. It also maintains that the 
lower rate of zloty devaluation is nec- 
essary to encourage domestic currency 
savings by slowing the rate et dollar 
appreciation. 

The rate of inflation for this year is 
expected to reach 27 per cent, or 4 


p ercentage points more than forecast 
by the government in its budget for 
1994 The government is also accusing 
the central bank of having infringed 
the law by not discussing the change in 
devaluation policy with the finance or 
the foreign trade ministries. The bank 
ha« toiled the charge. 

The tow is accompanied by govern- 
ment proposals that the central bank's 
sup e rvis or y functions be transferred to 
an a dvi sor y council appointed by poli- 
ticians. This suggestion has led Ms 
Burma Gronkiewicz Waltz, thp central 
hank chief, to warn that the bank’s 
indep endence is imHay threat. 

See Editorial Comment 


ADVERTISEMENT 


Pepsi-Cola 

International 


Pepsi has seen a ressurgence in company fortunes in the Philippines amidst 
exciting business conditions. 

Frederick S. Duel, Area Vice President, Pepsi-Cola International Philippines 
(pictured opposite), talks to Chris Chappell, former Business News Editor of 
The South China Morning Post 





Bew big Is Pepsi's operation 
fnfbePfaffipofees? 


Wo are one cf the 50 hugest cotBpraka here, wi* 
i U plaids and 72 ware bo uses. We Save 5000 
employees, pot cocManjt those hi our m wa an dit a. 
I wtricb wefcsadnsed. 

Whalfe the competitive ritnfloa? 

Pepsi, like taaay other companies, has had its 
share of d faip poiminenis is the Philippines bci 
we have seed a lem u y a c c of company fortunes 
over the ha 12 months. Is (be 1960a, Pepsi bd a 
Vmailus share in excess of TO per cem. We tost 
tfstr position doe lo Inland problems and have, 
over the Jut ten yearn, seen a contused 
i fcwn Joratfen in rriagve terms. Oor compctimo to 
the Philippines are strong, bnt recently market 
' Asm has grown from 15 to 20 per cent and to 
cake tfesr kind of share numbers away from 
worthy competitors is no smell eehfcwement 
We Hud this marker meriting; industry volume 
grew by 11 * over the fiat six months nd b set 
■ » jpow even mmc rapidly in the coming yew as 
•_ the economy strengthens. 

Apart from the taprerewst in the 
, ecoaoniy, wfaat tuu cased the 
■ improvement? - 

Ifepsi-Cftb decided to invest in technology b the 
Ph ilip pines as the mean* » grow the business. A 
year; agp> we introduced plastic rettnubfe bottles. 
JChat i nvolv ed an investment of US$28 mOlion. 
These arecnvHhnrnfflfflJly fifendy bootei which 
.-.nUew os to reuse a bottle 20 rimes before 
i cp i messing. They ate already in nse in Emope, 
. Id countries Hen Germany and HoUmd. end bn 
b<cn extremely toceessfaJ in places fflee Mexico 
; nod Anpetina, so h is » proven ledmoiogy and. 
'--most Importantly, it Is environmentally 
.responsible. We are the only company with 
photic MQxnabte bodes is ftuhp p j nei \ 

.WhitiRiwkKOceidntBf- 
•. E ke yerafly? 

. 'They ire exciting. 0 yon look it the macro 
economic numbers relative to the snnmmding 
VarewOf Mm nod SE Am. S* lmpresrioa t have 
.is fad b bine where the next explosive growth 
-J will oast. Afar aU. there me tnxntanji oonsaies 
; inxhc worid growing at 5 per .cent per yew, tad 
’’ with 66 mHBon people. 

,H«P unefe credit does the fiamos 
' .jwniwtitecwfct ti» 

iatpreremestfaicoBc&fexu? 

-Well. I was one of those who took Us early 
. jaombeswfahaEbeialdageofsali: I said s year- 
imd-n-haif . ago that U ibis, government 
' accomplished half what they promised, they 


would be doing extremely web. And now here I 
am, swpriscd along with everyone eke, that (hey 
haw been able to defiver on those promises. It b 
easy to find tab wish say goverameot bet at the 
end of the day. given ibc situation the Kamos 
artmiirtwretion started with, yon hnve to sey they 
heve done an o m s m nd m g job. Busine ss people 
know bow herd tt is id turn a business arotsid: ii 
is touch more tfifficuk to tun a large country 
•round, and they bsvc wcceedcd in doing that. At 
(he most obvious level. look nt the power 
situation. The government has successfully met 
power demands within 18 months at the most 
severe shortages in recent history. Wbeo f firm 


one of the first things I noticed was a huge 
gwwsawr In my boose. Now to tave come to a 
point that btowaoets are avoided or minbrised 
says a lot Ibrthe gov em meath org ani sation. And 
the rotation was very creative, involving the use 
of private and foreign investment in quickly 
approved schemes, it was a textbook crisis 
umn^nu^ i p ffi^w Btnl || took 8 JOC Of COXBVfC. 
Next, Lo telecom (fconlcft does the pi o gi o M hu 
been of a rirnflirr extent When i was ben 18 
years ego. yon had to wait years to have a 
telephone installed. Now the Ramos 
admintenation has opened up the infamy. Today 
I can go virtually anywhere and caO Manila or 
overseas w&h a cefafer phone, which could not 
have .even been conceived of when I was here 
last. For a company Kke ours with widespread 
Operations, fan b invaluable. Yes, voinrtim c s h 
ean take a few mioses to gel faoqgh or yon heve 
busy tones, bm in a developing cottony Eke the 
Ptufippines, it b naive to exped ITS standards or 
results, but there ean be no denying the 

Has fbe Bara gimmacmt 
taken Ms reforms Ereaoagh? 

No. I don't think 90 and I think the go v ernmen t 
taio w s that. I. think you win see more mown by 
Ihe government to bring (be Philippines *■•» the 
mainstream of capitalism and commercial isn. 
despite anrsnpB by large voted beams to irate. 
BH WtM is important is that the JTufippkttS fas 
something going for it ibai many developing 
countries lick - s system for peaceful change. 
During Ihe dramatic u r mluow of the Mateos, 
regime in 1986. it was l major triumph for 
mlttioits of people to be M the streets without 
dfage. 1 think many people hxvo fagpom dot 
the phnape ‘people power* originated in the 
PhfHppbirit, Some of ns with cntenl sad Mimic 
fata wifafapope think it was Isre&led there but 
h Maned hen in the PhiHppinta In 1986. Easton 
Europe owes merit to the concept of people 
power ax It evolved la the streets of the . 
Philippines; thm was the fast enuntry-whore 
people went Oat an tbcetrems. freed tanks and 
farced a peaceful re v otatio c . 


What else has the government 
ae tti e rt d of note? 

I think the attempt ex gening a value added 
tsxatkm system bo the PMHppfaa b one of tbe 
ben messages the government can scad to foreign 
Invesnw. The craret* struemre mvotwes 73 safes 
taxes and a heavy harden an a very narrow 
sp cct iuin of taxpayers. 1 am very pro- VAT, it 
simplifies the system, b Is more equitable and 
seif- policing. Jess open to conoptioo and more 
efficient. That b why b fs unftxtueate » see more 
e xemp ti o ns bring pot in phee. 

What effect wBl the PhSlppioes' 

deririon lo becoune a IbO afeaatory of 

GAIT have o» Bvfng ttaodards? 

It will have a deep soda! sad poUticsl impsa. The 
PbiUfptMa remain prin cip ally an agricultural 
country and off fmate ancecss depends on Its 
resernctaring and becoming competitive in 
prefacing nsiin thIhj arkli il prv*"^ The lififaig 
of pmsection bum cenain a*rio*npd sectors bore 
is m be wdognaed. I ttinh it b QXEhing fad may 
of onr mtufimn developed mdnsnies will benefit 
from GATTJ fianhare. vfadi takes taw materiris 
bom the PUSppba sad adds value, wBl gain 
entry into Earope and the US. where they 

miren dy face tariff barriers. 

Basic infastriea fike coooma ofi, wMcb cmrcsily 
free twf£f baaicre in Earepe and North America . 
vriB pfa scomtftbeu* pticaiuo fame taatiro 
where tbe local vegetable oil industries are 
protected. 

The coco nu t mdnsny a the biggest agricsihaia) 
mdnsny here and it mppons the move lo become 
a foil GATT signatory, h affects the greatest 
nmafaer of people ao there are big fcapfiestioas far 
the cmfagsof the mass base qT the population. 

As the peasant*! (noemo grows, hi desires and 
needs wfli evolve towattb consumer profaris and 
at hb tpiafity or fife improves, we will ail bene&L 

What woold yon advise other foreign 
compHities coatihriig an investment to 
tbe PbfOpptoes? 

The Philippines has been a place of great 
expectations so often followed by 
dfappobamcais. I tUidt yon have to pot aside the 
hgtodcil hiyyiyi hkJ apmn m tlM PhjljpfWHI 
with a dear, keen aye. Yon have lo remember 
there are 66 million v o n s am c a hi probably the 


most w w t HB bed oonnhy of sjgnificaoce hi Asm 
■ad look m 'ns achfevctnctn hi die pan two years 
relative to where it was. Looked at is Ufa way, 
thcPhiUppiocab voy Interesting, 

Remember; prior to 1068, the PtdUppiaes bed the 
highest per capita income in Ash alter Japan; 
urdortnmflrAy. tbe Marcos cm set the coonny frr 
back. - 

If you take the Marcos era as the aberration it 
was, the Philippines bas been i Strang perfo rmer 
and very poSticaDy fable. The point to be made 
Is that the Phliippfeea baa been rested fa dttttcaft 
times and demonstrated a capability to resolve 
issues and recover without convulsions n( 
viokajcc. 

The problem we have ns n m o a g m is we are often 
bound by very shore term objectives and time 
horizons. Today, there baa been such an 
acceleration of dedrioa -making and expectations 
of results that we dak missing some dsribes made 
obvious only by longer time horizons and 
p er spec ti ves. 

J like to point out companies Which hive looked 
at the Philippines with king- term horizons - 
Procter A Gamble. Un3em Colgate Palmolive - 

face companies here in ibc Philippines which 
have is thus country some of their biggest and 
man. profitable operations in Asia. 

We hear a lot abont law and order 
problems in the PblHpptaes; 
bow serious fat tire problem? 

You have lo be careful in any big city. There is a 
fair amount of petty c rinio 15 
bore, htft l don't think it is any more unsafe than 
other big dries In Europe. North America or 
elsewhere. Compared with rides in developing 
countries. Manila is probably safer than mast. 

What weeds to be done to ma i ntain 
tfce peer of reform nad growth 
iathcPIiMpptocs? 

Here Is where 1 become very bullish. Tbe 
.gsnudwotk in rams of comma: and investor 
confidence has been laid. Progress will continua 
bat if the country is to attain Tigerhood or 
Dragonhood, wo need to addren issues of 
taxation and tbe social Structora as* wbote. 

Yfe naad to coma that modi more of the income 
gpea to a grower proportion of the popnl a rin u. [t 
Is a motherhood statement bnt it ia very 
appifeabte in the FhitypiiML 


p S>SKBlA NTSWAHONAL 
~=^ F PHILIPPINES 

FO Bon t*66 MCC, 1229 Mfrkati, Metro Manila, Pfaffippines 





4 


FINANCIAL TIMES THURSDAY SEPTEMBER IS 1994 


NEWS: THE AMERICAS 


Troops needed to establish order even if junta goes quietly, official says 

US ‘committed to 
occupation of Haiti’ 


By Jurek Martin n Washington 

The US is committed to leading 
a temporary multinational 
occupation of Haiti even if the 
military jturta in Port-au- 
Prince agrees to leave the 
island immediately, according 
to a senior administration offi- 
cial yesterday. 

In a preview of President Bill 
Clinton’s pivotal televised 
address to the nation tonight, 
Mr Strobe Talbott, deputy sec- 
retary of state, said the pres- 
ence of such a force would be 
required to establish “basic 
civic order" before the restora- 
tion of the ousted government 
of President Jean-Bertrand 
Aristide. 

Asked if anything could now 
prevent the invasion of Haiti, 
he replied that even if “belat- 
edly the three principal dicta- 
tors get the message and leave, 
it will still be necessary for an 
international force to be 
deployed anyway”. 

Mr Clinton’s challenge 
tonight is severe, given the 
extent of political and public 
doubts about the wisdom of US 
involvement in a country 
whose intrinsic importance to 
the US is doubted. 

Other senior officials, includ- 


ing Mr Warren Christopher, 
secretary of state, and Mr Leon 
Panetta, White House chief of 
staff, have given interviews 
preparing the ground ha* Mr 
Clinton. 

But there is no ultimate sub- 
stitute for the president, as 
commander-in-chief, to make 
the case for despatching US 
forces into danger, even when, 
as in Haiti, the strength of mil- 
itary opposition is probably 
nugatory. 

Mr Talbott was intent on 
minimising the likely longer- 
term US exposure and maxim- 
ising international support for 
the operation. He repeated 
that, after the Initial invasion, 
the multinational force from 20 
or more countries would com- 
prise about 6,000 personnel, 
than half of tham Ameri- 
can. 

This is not an exercise in 
nation-building," he said, and 
any temptation in the direction 
of “mission creep” for US 
forces, as happened in Somalia, 
would be resisted once civilian 
rule had been restored 

Mr William Perry, secretary 
of defence, seemed to leave 
some room for manoeuvre by 
not ruling out a concrete dead- 
line for the departure of the 


junta, led by Lt Gen Raoul Ced- 
ras, the army chief, and Capt 
Michel Franpois, head of the 
police. 

But the prevailing mood in 
Washington, reinforced by Mr 
Talbott’s comments, was that a 
decision to invade, spear- 
headed by a 20,000-strong US 
amphibian force, had been 
maria and that only the ques- 
tion of tuning remained In 
doubt Yesterday another US 
aircraft carrier, the Eisen- 
hower, left its Virginia port for 
Haitian waters to join the 
America, which sailed cm Tues- 
day. 

Criticism of the prospective 
invasion gathered force yester- 
day with riqmawds from politi- 
cians and in the news media 
that Congress be allowed to 
express its opinion before 
action is irrevocably taken. 

Right; chairman of the US 
Joint Chiefs of Staff Gen John 
Shalikashvili (left). Marine 
Corps Commandant Gen Carl 
Moody and Chief of Naval 
Operations A dm Jeremy 
Boorda, at a Pentagon cere- 
mony yesterday. The three 
would be the top military com- 
manders in any invasion of 
Haiti ptcwaiM* 



Primary boosts Marion Barry comeback 


By George Graham 
bi Washington 

Mr Marion Barry's resounding 
victory in Tuesday’s Demo- 
cratic primary ballot puts him 
just one step away from 
reclaiming the office erf mayor 
of Washington, which he lost 
four years ago when the Fed- 
eral Bureau of Investigation 
arrested him on cocaine 
charges. 

Mr Barry’s campaign has 
seemed at times to be less a 
political comeback than a per- 
sonal resurrection, but he won 


47 per cent of the primary 
votes, seeing off Councilman 
John Ray, his principal rival, 
and crushing Mrs Sharon Pratt 
Kelly, the incumbent mayor. 

In overwhelmingly Demo- 
cratic Washington, Mr Barry’s 
primary victory is expected to 
guarantee him. victory in the 
November election, even 
though his Republican and 
independent opponents are 
pypprtpri to reap an unusually 
large number of "anyone but 
Barry” votes. 

In a victory speed], Mr Barry 
promised that God’s power. 


which bad redeemed him from 
sin, would "lift the city of 
Washington off its knees”. 

But his comeback seems 
likely to place Washington, 
which as the US capital 
remains under the su per v ision 
of Congress and has only 
enjoyed limited self-rule for the 
last 20 years, tinder much 
tighter scrutiny. 

The congressional commit- 
tees overseeing Washington’s 
spending forced Ms Kelly to 
cut her budget this year, and 
they are expected to keep Mr 
Bany, who spent freely in his 


12 year tenure as mayor, on a 
very short financial rein. 

"It’s a sad commentary and 
Knr ftathmg every American has 
to come to grips with that you 
could have people in a city like 
Washington so desperate that 
they would vote for a convicted 
felon with a totally failed 
record, and a man who clearly 
is going to have an impossible 
time trying to deal with the 
Congress,” said Congressman 
Newt Gingrich, who is likely to 
take over as the Republican 
leader next year. 

In other closely fought pri- 


maries on Tuesday, Governor 
Arne Carlson of Minnesota 
won the Republican nomina- 
tion, fending off a challenge 
from a rflwriirhite wimh by the 
evangelical Christian ri gh t 
Three other incumbent gov- 
ernors - Republicans Fife Sym- 
ington. of Arizona and Steve 
Merrill of New Hampshire and 
Democrat Mario Cuomo of New 
York - also won primaries. But 
Governor Bruce Sondlun of 
Rhode Island was defeated by 
state senator Myrth York in 
his bid for the Democratic 
nomination, to a third term. 


Judge 
blocks 
shipments 
of N-fuel 

By George Graham 

A US federal judge has Mocked 
shipments of spent nuclear 
fad from European research 
reactors, throwing into chaos 
the US’s policy of reducing the 
volume of bomb-type highly 
enriched uranium In use 
around the world. The move 
also jeopardises US cmHMBty 
in talks under way in Geneva 
on renewing the Nuclear Non- 
Proliferation Treaty. 

Judge Matthew Perry 
granted an injunction to the 
state of Sooth Carolina bar- 
ring the Department of Energy 
from storing 409 fuel rods 
from Europe at the Savannah 
River nuclear plant. 

The department is expected 
to appeal against the decision, 
which has nevertheless 
thrown a spanner into the US’s 
30-year-old off-site fuel pro- 
gramme, under which the US 
agreed to accept spent fuel 
from participating foreign 
reactors in exchange for their 
co mmit ment to switch to less 
dangerous low enriched fuel 

Although environmentalists 
utmT nuclear non-proliferation 
advocates have joined forces to 
bad; the department's decision 
to accept the fuel. Governor 
Carroll Campbell of South Car- 
olina has fought against it. 

“Governor Campbell Is put- 
ting at risk a key element of 
US efforts to prevent the 
spread of nuclear weapons,” 
said Mr Paul LeventhaL presi- 
dent of the Nuclear Control 
Institute, a Washington-based 
group. 

The trust of the European 
reactors who signed up for the 
off-site fuel programme was 
stretched to breaking point 
when the US broke its side of 
the bargain for five years, fol- 
lowing a l aw s uit brought by 
environmentalists. 

Some developing countries 
point to the US's failure to five 
up to tts counmtments as a 
good reason why they shonld 
not agree to an indefinite 
extension of the NPT. 


Amnesty in plea 
to Brazil on 
human rights 


By Angus Foster in Sfio Paulo 

Amnesty International 
yesterday cal led on candidates 
in nett month's Brazilian elec- 
tions to rngfcg hfrnian rights a 

priority for the next govern- 
ment In a report highlighting 
several recent cases of human 
rights abuse in Brazil. 
Amnesty also made several 
recommendations for improv- 
ing the judicial system as well 
as the police, who have been 
implicated in several of the 
worst abuses. 

“me killings and torture can 
only be stopped if the people 
elected to government give a 
high enough priority to 
actively pr omoting end protect- 
ing human rights," said the 
report 

The report contained a sum- 
mary of some of Brazil’s recent 
hi ghly publicised human rights 
cases. These indude the 1992 
prison massacre at Carandiru 
in Sao Paulo, when 131 prison- 
ers were killed by police, and 
last year's murder of eight 
street children in Rio de 
Janeiro. 

Amnesty also highlighted 


the problems faced by Brazil's 
overcrowded prison system 
and the alleged Involvement of 
off-duty police in "death 
squads" hired to kill petty 
criminals or drug rivals. 

Brazil has tended to accept, 

sometimes gr u dgingly, human . 
rights criticism. Complaints 
about the S&o Paulo police fol- 
lowing the Carandiru massacre 
led to a sharp fall to the num- 
ber of civilians ldlled by the 
police, from more than 100 a 
month to about 20 a month. 

Amnesty-said Brazil's police ~ 
needed "radical change” to its 
organisational culture and 
operations. At present, mem- 
bers of the police are tried to 
military courts, a hangover 
from Brazil’s 1964-85 military 
rule. According to Amnesty, 
such cases should be trans- 
ferred to civilian courts 
because military courts foil to 
convict police in human rights 


Amnesty is due to meet the 
two frontrunners in the presi- 
dential elections. Mr Fernando £ 
Henrique Cardoso and Mr Lute - 
InAcio Lula da Silva, tomor- 
row. 


Beige Book points 
to uneven growth 


By James Ha rding 
In Washington 

US economic activity 
wmtinnert to expand over the 
summer, though unevenly, 
according to two government 
reports released yesterday. 

The Beige Book, the survey 
by Federal Reserve Districts of 
regional economic activity, 
said: "Regions that have been 
lagging are generally said to be 
doing better, while most erf the 
stronger areas saw growth pla- 
teau." 

US Commerce Department 
advance monthly retail sales 


figures showing a 0.8 per cent 
rise in August, marking a 7 pear 
cent increase on the same 
period a year ago. 

The Beige Book, prepared for 
use at the Federal Open Mar- 
ket Committee meeting on Sep- 
tember 27. follows the Augusta 
report which showed economic 
activity growing at a solid pace 
to most parts of the country. 
The FOMC meeting erf August 
16 raised interest rates by half 
a percentage paint 

The ex pansion In cnmirmer 
spending is seen as "healthy 
albeit decelerating”, the report 
raid yesterday. 


BRITISH COAL CORPORATION 

Invitation to offer to purchase 
TES Bretby Limited 


British Coal Corporation fECCT) is 
seeking offers to purchase TES Brettjy 
limited (’TES'). a provider of a wide 
range of specialist scientific sendees. 

TES Bretby 

TES, which is a wholly owned 
subsidiary of BCC, provides a wide 
range of specialist scientific services to 
British Coal and other industrial 
customers in the United Kingdom. TES 
operates through two divisions'. Coal; 
and Safety, Health and Environment 
The main services provided are as 
follows: 

Coal 

• Goal sampling, including 
provision of colliery samplers 

• Coal sample preparation 

• Analysis of coal samples 

• Coal science services 

• Coal quality assurance at 
collieries, opencast sites and 
power stations 

• National transport service for 
sample collection 

Safety Health & Environment 

• Analysis a! solids, liquids, gases, 
water and contaminated soil 
samples 

• Health and safety testing and 
consultancy 

• Respirable, inhalabie and fugitive 

dust 

• Health physics service 

• Instrument maintenance 

• Continuous emergency on and 
off-site testing fatiKties 

The business operates from 
premises on the Bretby Business Park, 
near Burton-on-Trent Facilities there 
indude a sample preparation area, a 
laboratory facility and administrative 
offices, in addition TES occupies 
limited accommodation in Scotland, 
Tyne and Wear. Yorkshire, Nottingham- 
shire and South Whies for the provision 
of some local services. TES has 
entered into contracts for the supply of 
services to British Coal which it is 
intended will subsequently be 
transferred to toe five Regional Coal 
Companies on privatisation of the core 



mining business of British Coal. These 
contracts are for an initial fixed period 
until March 1998. In addition to these 
the Company has -a number of 
contracts with non -British Coal 
customers. 

In toe year ended 27th March, 1994, 
TES' unaudited proforma operating 
profit was approximately El £ miBon on 
turnover of approximately £9.8 million. 

Prospective purchasers of TES are 
now invited to pre-qualify for the sale 
process. Interested parties who do not 
pre-quaBfy may be excluded from toe 
sale process. Applications should be 
made in writing to Samuel Montagu & 
Co. Limited at toe address stated below 
enclosing the following information: 

- a brief description of the 
applicant's activities and throe of 
the group to which the applicant 
belongs, if applicable; 

- copies of the audited annual 
company accounts, and the 
consolidated accounts of the 
group to which the applicant 
belongs if applicable, for the past 
three years; 

- a brief description of trie industrial 
and economic rationale for the 
investment; and 

- an explanation of the way in which 
toe acquisition will be financed. 

Applications may be made by fax but 
should be followed by a postal or hand 
delivered application and should be 
sent as soon as possible and. in any 
case, so that they are received by 

Tuesday 4th October 1994. 

BCC wiH consider applications to 
pre-quaiify on the basis of the 
information requested above and any 
other factors considered appropriate 
and reserves the right not to pre-qualify 
arty potential purchaser. Potential 
purchasers should note that under the 
sale arrangements they will not be 
permitted to acquire both TES and one 
or more of the successor regional coal 
companies which are currently being 
offered for sale as part of the 
privatisation of the coal industry. 
Applications to pre-qualify should be 
made only by parties which are 
incorporated as limited companies. 

Those who respond to the invitation 
to pre-qualify will be provided with a 
confidential^ letter which should be 


vafittiy counter-signed by toe applicant 
and relumed to Samuel Montagu & Co. 
Limited a! the address stated below to 
arrive no taler than Tuesday 11th 
October 1994. Applicants who pre- 
qualify will thereafter be provided with 
an information memorandum issued by 
Samuel Montagu & Co. Limited which 
wiH include information on TES and on 
the process of sale and timetable. 
General 

Neither this Invitation, nor the receipt 
of any offers by BCC wifi create, with 
respect to BCC, any obligations or 
commitment to sell to any bidder and, 
with respect to any bidder, any rights to 
demand any performance whatsoever 
by BCC. BCC reserves the right to 
withdraw from negotiations with 
interested parties without assigning any 
reason or providing any compensation 
for fees or expenses incurred. Brokers 
or agents of any kind must disclose the 
identity of the company they represent 
This advertisement and the sale 
process are subject to English law. 

This advertisement for which BCC 
is responsible, has been approved by 
Samuel Montagu & Co. Limited, a 
member of The Securities and Futures 
Authority, for the purposes of Section 
57 of the Financial Services Act 1986. 
Samuel Montagu & Co. Limited is 
acting for BCC in relation to the 
publication of this advertisement and is 
not acting for any other persons and will 
not be responsible to such persons tor 
providing protections afforded to 
customers of Samuel Montagu & Co. 
Limited or advising them as to any 
matter referred to herein. 

Address for receipt of a pp Bcat ions 
Applications should be addressed to 
Samuel Montagu & Co. Limited, who 
will receive them on behalf of British 
Coal, and marked for toe attention of 
P&ter Jones, Director, 

Corporate Finance Division, 

10 Lower Thames Street, 

London EC3R 6AE. 

(Telephone:071 260 9315. 
facsimile; 071 623 5512). 


British 

COAL 


Welcome for US banking bill 


By George Graham 

Bank industry lobbyists in Washington 
breathed a sigh of relief yesterday after 
the Senate finally passed a bill to allow 
banks to set up branches more freely out- 
side their home states. 

Sweeping aside last-minute objections to 
some of the miscellaneous provisions 
attached to the bill, the Senate voted 94-4 
on Tuesday in favour of a measure that 
some of its backers had feared might once 
again get bogged down in the legislative 
process and expire without a vote before 
Congress breaks 19 next month to cam- 
paign for the November 8 elections. 

Mr Lloyd Bentsen, the Treasury secre- 
tary, said the bill was “a major step for- 
ward for the American banking system" 
that had been sought by the last four 
administrations. 

“Interstate banking and branching will 
be beneficial to banks and their customers 
as well as the nation’s economy as a 


whole. This bill will allow banks to reduce 
expenses by structuring themselves more 
efficiently,” Mr Bentsen said. 

Key points of the banking bill include: 

• Bazik holding companies may acquire a 
bank in any state, starting in one year. 

• Ranks in separate states may merge, 
from June 1 1997, unless either stale has 
"opted out” by passing a law to ban such 
Interstate mergers. 

• Banks could open new branches out- 
side their borne states only if states "opt 
in” by passing a law to allow it 

• Foreign banks would have the same 
right to open new branches as US banks, 
whether they operate in the US through a 
separate subsidiary or through a direct 
branch from their home country. But for- 
eign banks could be required to establish a 
subsidiary if US bank regulators deem it 
necessary to verily their capital adequacy. 

• A separate measure would extend the 
statute of limitations to allow the federal 
regulators to revive claims against offi- 


cials of failed savings and loans or banks 
in cases of egregious fraud or Intentional 
misconduct, but not of simple ne gli gen ce . 

Over the past 15 years, the state-by-slate 
compaitmentafisatton of the US banking 
system has gradually broken down. Only a 
handful of states stiH forbid any acquisi- 
tion of their hanks by out-of-state bank 
holding companies. 

At the same time, the Inconveniences 
lor customers have diminishe d as nation- 
wide cash machine networks allow con- 
sumers to withdraw cash when they leave 
their home state. 

But mnoh of the consolidation has been 
regional, and banks currently do not 
accept deposits across state fines - even 
from customers of their own affiliates. 

For example, someone who works in 
Washington DC but lives in the Maryland 
suburbs is not allowed to deposit a pay 
cheque in a Washington branch of Riggs 
Bank, even though he or she has an 
account at Riggs in Maryland. 


New look for industry on way 

Banks have already found ways round laws, reports Richard Waters 


W ill scrapping the 
remaining barriers 
to nationwide bank- 
ing toxfon tho reshaping of the 
US banking industry? The 
question has been debated in 
bank boardrooms for years. 
Now. with the final passage of 
interstate banking, it is time 
for the reckoning. 

In some ways, the adoption 
of full interstate banking 
should make little practical dif- 
ference. Thanks to changes to 
state laws in recent years and 
the growth of finance company 
subsidiaries, many banks have 
already extended their reach 
around the country. 

The legislation that pre- 
vented interstate banking 
came in two parts. First, in 
1927, the McFadden Act effec- 
tively prohibited banks from 
r unnin g branches in other 
states. The Douglas Amend- 
ment to the 1956 Bank Holding 
Company Act prohibited the 
takeover of banking companies 
in other states, unless those 
states’ laws specifically 
allowed it At the time, none 
did. 

These laws have less few 
than they once did. In 1975, 
Maine the first state to 

allow out-of-state institutions 
to buy local banks. Sixteen oth- 
ers have followed suit, while 26 
more allow ownership by hold- 
ing companies based in states 
which give reciprocal rights. 

States have also relaxed 
bank takeover laws in times of 
financial distress to let outsid- 
ers rescue troubled local insti- 
tutions. In Texas, the three big- 
gest hanks succumbed to the 
real estate collapse of the 
1980s. Chemical Banking of 
New York, NationsBank of 


North Carolina and BancOne 
of Ohio now control nearly 40 
per cent of Texas's banking 
deposits, equivalent to $55bn at 
the end of 1992. 

This encroachment of hanks 
across state lines through 
acquisition has tategn hold rap- 
idly in a few years. At the end 
of 1992, more than a fifth of a& 
bank assets in the US were in 
the hands of out-of-state insti- 
tutions, compared with just 6 
per cent in 1987. 

Where they have not expan- 
ded through acquisition, hart ire 
have found ways around the 
legal barriers. One approach 
has been to hive off their fast- 
est-growing consumer busi- 
nesses, such as credit cards, 
into non-bank companies 
which can operate outside the 
scope of banking legislation. 

Chase Manhattan, the New 
York money-centre bank, owns 
a string of finance com panies. 
"We couldn't expand in the tra- 
ditional way, we were prohib- 
ited," says Mr Arthur Ryan, 
bank president "But in hind- 
sight, we found that it was a 
very effective way of doing it” 

Despite these inroads, con- 
siderable obstacles to inter- 
state hanlrfng mmafa 

One is the so-called South- 
Eastern Compact, a loose 
arrangement between states in 
the region. Designed to protect 
local institutions from take- 
over by powerful New York 
banks, the compact has of late 
bad the effect of hindering 
banks based in the region 
which want to expand else- 
where in the country. One by 
one, states to the south-east 
have already started to pass 
local laws to drop their restric- 
tions. 


A second obstacle is the 
inability of banks to set up 
branches in other states. Only 
43 of the US’s 56,000 bank 
branches in 1992 were operated 
by banks from another state. 
For bank customers who regu- 
larly cross state lines, this 
causes great inconvenience. A 
customer of Citibank in Mew 
York, for instance, cannot 
deposit money in a branch of 
Citibank in Connecticut it is a 
legally separate bank. The 
growth of automated teller 
machine networks has allevi- 
ated some of tbe inconve- 
nience, but lifting the ban on 
branching will make Ufa easier 
for millions tf Americans. 

A third obstacle to run- 
ning an interstate 
banking group has 
been cost. NationsBank puts 
the extra administrative costs 
(of running a series of separate 
boards and meeting federal 
and state reporting require- 
ments) at $50m a year, while 
BankAmerica puts its own 
extra costs at $75m. "That 
$75m adds zero to the safety 
and soundness of the banking 
system." says Mr Richard 
Rosenberg; chairman of Bank- 
America. 

For the banking industry, 
though, perhaps the most sig- 
nificant question is whether 
the new legislation wifi give 
added impetus to the takeover 
and merger wave that has been 
undo* way since the late 1960s. 
Some banks which are 

already active acquirers play 

down the s i gni fi cance of the 
law. 

Others, though, argue that 
the legislation could provide 
the spark which Ignites 


another flurry of big acquisi- 
tions. Mr Robert Gillespie, 
president and chief op e r a ting 
officer of KeyCorp, which itself 
vaulted into the top 10 with a 
merger this year, says of tbe 
legislation: "It doesn't change 
tbe economics of the industry, 
but it gives everybody an 
excuse [to make acquisitions.] 
No-one wants to get left with- 
out a chair when the music 


Some mergers are aireac 
being justified on the grouzn 
that interstate banking wi 
make local b anking mark# 
more competitive. Last monl 
two North Carolina hunk 
BB&T Financial and Southei 
National, merged to form s 
institution with assets t 
*lSbn_ 

These are issues bein 
debated by bank boards arour 
the country. Mr Leo Multa 
president of First Chicagi 
says: “There Is no esseniu 
reason why we have to merg 
ot be acquired. But having aai 
that, there’s no question th» 
certainly four] businesses bei 
eat from scale, . . If we coS 
hook up with the right sltm 
non, there’s no doubt it wou] 
be useful” 

And, although the pace t 
bank mergers has slowed i 
recent months, most sank 
executives in the industr 
expect the consolidation t 
“We wifi see a cor 
“autos acceleration of transai 
the transactions wS 
get bigger - Mr John McCoj 
J^f^an of BancOne. sal 
^eeatiy. It Is a view wide! 
shared by his counterparts t 
other banka. The only thin 

2!?* re 001 agreed on is, wh 
will be next? 


# 


1 



J 


X 



} 


FINANCIAL TIMES THURSDAY SEPTEMBER 15 1994 


NEWS: INTERNATIONAL 


.Naira falls as Nigeria forex fears grow 


Businesses turn to other sources on worries that supply may run out by end of the year 


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By Paul Adams in Lagos 

Fears that Nigeria's official 
supply of foreign exchange will 
not last until the end of the 
year have sent the naira farm. 
Wing on the black market 
since late August as businesses 
tom to other sources of foreign 
currency for imports. 

The street value of the naira 
to the dollar has faiw tram 
N55 to N68 In the past fort- 
night, while the government 
continues to allocate scarce 
dollars at N22, or one-third of 
the black m ar k rt ; value. 


The Central Bank of 
Nigeria's allocation of $100m 
(266.0m) -for this month met 
only 3 par cent- of demand and 
takes the total allocated this 
year to SL4bh. 

The government has cut its 
budget for allocations of fin> 
eign exdiange to- the private, 
sector from gZJfan to $L9im. 

Many bankers and importers 
urayfiw cot in eifa tar- 
get bythe end of the year, 
which would leave mannfac- 
turera short off goods and mate- 
rfalB and further depress tl» 
unofficial value of the naira. 


In January. General Sani 
Abacha’s regime banned the 
parallel foreign exchange mar- 
ket and centralised -all cur- 
rency transactions through the 
Central Bank rtf Nigeria (CBN) 
at an nwirfat exchange rate of 
N22 to the dollar. 

The US embassy In Lagos 
recently wnhang wi dollars at a 
rate ofN62, almost three tbnes 
the official rate, through 
authorised te mlra 

An embassy spokesman said 

the rate was approved by the 
Nigerian government. This 
privilege is denied to private- 


sector exporters wishing to 
bring back their export pro- 


In May, a committee under 

Mr Sairmwl OghPTmwfia , labour 

minister, took control of cur- 
rency allocations, including 15 
per cent of the -official supply 
which went to “priority users''. 

These often went through 
middle men who demanded a 

premium of about NIB a dollar 
for an allocation, atfee official 
rate. The committee has been 

fitm this QTQnth- 
The black market devalua- 
tion also reflects recent politi- 


cal instability and tears that 
government spending will 
push up Inflation. 

Western economists say the 
pwB wimmil deficit is h«*Hing 
towards last year's level of 1? 
per cent of gross domestic 
product, despite a budget fore- 
cast cf zero deflctt. 

Sharp increases in transport 
arid food costs during the 
recent oil strike and a flood of 
freshly-minted bank notes are 
other signs that Inflation, 
which is already running at 60 
per cent a year, could rise even 
further. 


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ISM tap 


Japan’s trade 




fall of 18 . 8 % 


By WSfiani Dawkins In Tokyo 

Japan's summer heatwave 
produced an unexpectedly 
large 1&8 per cent foil in the 
August trade surplus, the first 
year on year drop for three 
months. 

A nearly 24 per cent rise in 
oQ imports, caused by a surge 
in electricity demand as the 
country turned up its afr-condi- 
tianers, was the main feature 
in a narrowing in the trade gap 
to $6.08im (£4j05bn) last mohth, 
from $7.49bn in August last 
year. This was a surprise for 
the market, where forecasts 
had ranged from a slight 
decline to a moderate rise in 
the trade gap. 

Overall imports .rose by 23£ 
per cent to $25.18bn* also 
helped by a gentle rise , in 
underlying demand, while 
exports climbed less steeply, 
by 11L2 per cent to $3L26hn, the 
finance ministry reported yes- 
terday. 

The latest trade balance .pro- 
vides further evidence that. the 
gap is near or past its peak. 
minis try officials said. When 
measured in yen, the surplus 


fell by 224 per cent 
However, the' figures are 
unlikely to US frustra- 

tion as it struggles to make a 
framework trade agreement 
with Japan before the end-of- 
the -m onth deadline, after 
wbidh Washington has threat- 
ened to open sanctions pro- 



'gocKK Mattwnt 


Japan's surplus with' the US 
actually widened in August, 
far the «fofh month running, 
. up by 2 per cent to $3.49bn, 

more thart >w»Tf the to tal The 

yen acconfingly krengthened 
In Tokyo yesterday, dosing up 
YDJ.4 to Y9&S3 to the dollar. 

However, the trade gap with 
other Asian countries was even 
wider than that with the US, at 
34.011m, a 3 per cent rise cm 
August last year. The increase, 
for the third month running, 
shows strong exports of plant 
and equipment to the growing 
number of Japanese produc- 
tion sites migrating to sonth- 
east Asia to escape high Japa- 
nese costs. 

Japan's trade surplus with 
the European Union continued 
to foil, for the eighth month in 
arow, togLOTbn, down 23 j 9 per 
cent on - the same month in 
U8B. 

•' Evidence that corporate 
japan is stiZT struggling with 
problems left -by the recession 
emeiged yesterday in the 
shape of a 13:6 ’per cent rise to 
Y485l83bn in ■ bankrupt compa- 
ide^ dehts last mouth. : 

Thenumbea'crfSaidcn^ 
fell bT 4.1 per cent in August, 
to 1,143, said Tefloiku Data- 
bank, a credit research agency. 
It forecast that bankruptcies 
would run at more than 1,000 
per month fur. the rest of the 
year, because of competition 
from cheap imports and a 
Shortage of fluids. * 


Sumitomo Setback 
Bank chief for shop 
murdered discounts 


i 

I 


By Gerard Baker In Tokyo 

A 54-year-old executive of one 
of Japan’s largest banks was 
shot dead yesterday outside bis 
home. Mr Kazufumi Hatanaka 
was the director of Sinnitomo 
Bank's Nagoya branch. 

The murder was the latest in 
a series of attacks cm employ- 
ees of the bank and its related 
companies. Between February 
1 and May last year 22 incidents 
were repented, including fire- 
bomb at ta c ks cm the home of a 
bank vice-president an d sh oot- 
ings at br anches in Tokyo and 
Yokohama. 

The president of the bank, 
Mr Sotoo Tatsumi, received 
three threatening letters con- 
taining. razor blades at his 
home in Kobe during the same 
period. 

Police said yesterday there 
was no immediate suspect or 
motive, but they are under- 
stood to be investigating possi- 
ble Wnka between the attacks 
and problems the bank has 
been; having with alleged 
organised crime members. 

Sumitomo is trying to collect 
bad debts from customers to 
whom it extended large num- 
bers of prqperty-related loans 
in the late 1990s. 

Other companies have 
reported a sharp increase in 
attacks an their employees in 
the last year. A vice-president 
of Hanwa Bank was shot dead 
in August last year, and in 
February this year, an execu- 
tive Of Fuji Film Co was 

stabbed to death in front of his 

Tokyo home. 

Companies have paid large 
«amm to gangs to prevent them 
from disrupting abarehclders’ 
meetings. Yesterday, Kirin 
Brewing Company was ordered 
to pay more than Y90m 
(£582,000) ta penalty tax for 
ranreaHng income Of YloQm in 

an extortion s c an d a l , u nder- 
' stood’ to be related to gangster 
activity. 


By WWam Dawkins ■ - 

The sales division of SHseMo, 
Japan's largest cosmetics pro- 
ducer, yesterday won court 
clearance to refitse to~ simply 
its goods to Fntfikiya, a dis- 
count retailer. 

The Tokyo high .Mart deci- 
sion, on an appeal by Shlseldo, 
Is an unexpected legal setback 
to the growth of discounting 
in Japan’s high-priced 
retailing industry and 
conflicts with a three-year-old 
fair trade commissi on ruling, - 
to favour of cut-price cosmet- 
ics. 

The FTC. which is indepen- 
dent from the courts, is 
expected this year to pass 
judgment on a similar, raw 
between Kawachlya, mother 
cosmetics discounter, and 
SUseido. 

jfliiggjiln was told by a dis- 
trict court a year ago that It 
had contravened anti-monop- 
oly laws by stopping sales to 

Fufiktya, which was offering 

20 per cent discounts on Sbris- 
eido goods. 

The cosmetics group , had 
ended Its contract with the dis- 
counter on the grounds that it 
objected to Fotfkfra's. practice 
of piling Shlseldo goods onto 

shelves, rather than using 
Shiseido-tralned sales staff to 
present the products to cus- 
tomers. 

Known as the “face to face” 
system, the use of sales staff 
trained by manufacturers ts 
standard practice in depart- 
ment stores, and a factor in 
theft high prices. 

The FTC had earlier investi- 
gated the dispute and ruled in 
1991 that FutiWya’s sales prac- 
tices were legaL Mr KfaScM 
Takahashi, the high c oflrt 
judge, yesterday argued that 
Shteddo had a legal right to 
demand “face to face" sales 
contracts, even if this led to 
higher prices. 



OBSTACLES OVERCOME: Yaasir Arafat (left) and Israeli foreign minister Shimon Pens sign the Oslo accord to speed FLO aid up 


France welcomes FIS ‘release’ 


By Francis Ghlte dialogue between the Algerian 

- — -authorities and the FIS is a 
welcomed reality.'* 

The minister cautioned, how- 
ever, against undue optimism, 
noting: It is no secret that the 
Islamic movement and no- 
doubt the authorities remain 
divided.” ' • 

Mr Juppe insisted that 
France had never “given 
unconditional support to the 
Algerian government! While 
understanding the concern of 
every government to ensure 
order and security in Its coun- 
try, we have said that a policy 
focused entirely on security 


France yesterday 
toe transfer of two oppos ition 
Islamic Salvation Front (FIS) 
leaders, Mr Abassi Madani-and 
Ah Benhadj. from jad to house 
arrest and toe freeing of three 
others, as an important step 
towards ending the violence 
which has- cterimed 10,000 vic- 
tims in the past 21 months. 

Mr Alain Juppfe, foreign min- 
ister. told a cabinet -meeting 
yesterday that the decision by 
General T .la mine Zeronal. the 
Algerian head of state, was “an 
important step, showing that 


would not produce a lasting 
solution. ” 

Gen ZerouaTs decision was 
also welcomed by Mr Rabah 
Kebtr, spokesman for the 
wllert FIS, who said that his 
party “was happy about 'the 
liberation of our leaders. We 
consider it a positive step but 
not a sufficient one. AH FIS 
leaders must be set free, nota- 
bly Mr Andelkader Hachani, 
the head of the party executive 
at the time of the elections of 
December 1S9L" 

Meanwhile, 17 international 
commercial banks held a meet- 
ing with the Banque d’Algerfe, 


the central bank of Algeria, in 
Paris on Tuesday to discuss 
the restructuring of $8.1bn 
(£2.06bn)-worth of the coun- 
try's $4.7bn commercial debt 

The banks decided, to set up 
a steering committee* which 
will include two Japanese 
banks, two Arab banks, one 
French and one US bank and a 
Japanese leasing company. 

The next meeting between 
Algeria and its commercial 
banks creditors will take place 
In the week after the annual 
meeting of the International 
Monetary Fund, due in Madrid 
in the first week of October. 


Singapore admits 
pollution hazard 


By Kleran Cooke In Singapore 

For the first time in its 
modemday history, Singapore 
has had to aflwit it has a poUn- 
tion problem. 

The Island republic's envi- 
ronment ministry said this 
week that air pollution had 
reached an unhealthy level 
Those with serious heart and 
lung ailments should stay 
indoors; same healthy people 
might experience slcfn anH eye 
irritations. 

The pollution has been front 
page news in a city which has 
prided' Itself on Its clean and 
green image. 

The authorities say a thick 
haze which has enveloped the 
city over recent weeks has 
been canted by finest fires rag- 


ing in nearby Indonesia.. 

Many thousands of hectares 
of tropical rainforest are 
reported to be ablaze on the 
Tndnripfri^ p mftTifl of Sumatra. 
More forest fires are reported 
in East Kalimantan; on the 
island of Borneo. 

Singapore’s leaders go to 
considerable lengths to ensure 
that the city state is kept 
squeaky-clean. Those who drop 
rubbish are liable not only to 
heavy fines but also to being 
dressed to luminous Jitterbug 
jackets and paraded in front of 
television cameras. 

Singapore has some of the 
world’s toughest anti-smoking 
laws. The sale of chewing gum 
is prohibited In order to com- 
bat any unsightly mess in pub- 
lic {daces. 


Indonesia accused 
of rights abuses 


A human rights group 
yesterday accused Indonesia of 
human ti ghts abuses including 
torture and the ar bitr ar y use of 
power, in a wide-ranging 
report, -Beuter reports from 
Jakarta. 

The 88-page report, “The 
Limits of Openness", focused 
mainly an Indonesia’s ban on 
three magazines in June, the 
troubled territory of East 
Timor, worker rights and a 
crackdown on members of a 
Christian church in Sumatra. 

“AH ' these cases involve 
major violations of internation- 
ally recognised human rights," 
the report by Human Rights 
Watch/Asia, formerly Asia 
Watch, said. 

“Bnt more to the point; these 
cases illustrate the pervasive- 


ness of the harassment that 
ordinary Indonesians suffer on 
a daily basis. Torture is used 
routinely to punish and intimi- 
date as well as obtain informa- 
tion. 

“If there is a constant in 
Indonesian politics today, it is 
the arbitrariness inherent in 
periods of tolerance or crack- 
down.” 

The detailed report comes 
two months before Indonesia 
hosts an informal s ummit of 
the 17-member Asia Pacific 
Economic Cooperation (Apec) 
group. It called for a public 
statement, explicitly outlawing 
torture at aH times, while wel- 
coming 

Jakarta’s move to invite UN 
officials to visit East Timor 
and reforms on weaker rights. 


High anxiety 
for Hurd in 
Hong Kong 

UK foreign secretary flies in as 
China attacks Jardine group. 
Simon Holberton reports 


C hina's attack on the 
Jardine group has 
ensured that the visit to 
Hong Kong by Mr Douglas 
Hurd, Britain’s foreign secre- 
tary, which starts today will be 
conducted in an atmosphere of 
high anxiety. 

Beijing's decision to turn up 
the heat on Hang Kong's Brit- 
ish administrators is consist- 
ent with the gloomy foreign 
office assessment of the out- 
look for Slno-Brltlsh coopera- 
tion on the colony's transfer to 

Rhin a. 

With less than three years 
before Hong Kong is banded 
back to China, British officials 
have told Mr Hurd they expect 
another period of hard slog 
with little progress being made 
on a growing agenda needed to 
ensure a smooth transfer of 
power in 1997. 


An apparent 
thaw has 
swiftly given 
way to 
pessimism 


There is also a growing view 
in the colony that China's lat- 
est moves have exposed the 
contradiction at toe heart of 
British policy towards Its last 
great colonial possession. This 
policy seeks both an honour- 
able withdrawal from Hong 
Kang, and a smooth transition 
to Chinese sovereignty for the 
colony. Yet. the more Britain 
pursues honour the more it 
seems likely that Hong Kong’s 
transition to Chinese rule will 
be a bumpy one. 

The optimism engendered by 
an apparent thaw in relations 
- the high-water mark of 
which was an agreement on 
the distribution of military 
land in June - has swiftly 
given way to pessimism in the 
face of a discernible hardening 
in Beijing's attitude toward the 
UK and Hong Kong. Two 
months ago a comprehensive 


settlement to two of the most 
Important outstanding com- 
mercial issues - the financing 
of Hang Kong’s new airport, 
and approval for the extension 
of the colony's container port - 
seemed within grasp. Today 
they appear as remote as ever. 

Beijing has already made it 
known that it expects little 
from a meeting between Mr 
Hurd «mt Mr Qian QJchen, his 
Chinese counterpart in New 
York at the end of the month. 
The best guess by the British 
foreign office for the abrupt 
change in China’s position is 
that Beijing reassessed its posi- 
tion in light of the events of 
June this year. 

First there was the Legisla- 
tive Council's vote at the end 
of June on Governor Chris Pat- 
ten's plans to liberalise the col- 
ony’s 1995 elections. During 
this vote Beijing attempted to 
persuade LegCo members to 
vote against the governor, but 
foiled. Beijing concluded from 
its defeat that that it should 
have stayed out of the process. 

Second, the proximity of the 
defence lands deal to the vote 
- it came the morning after 
LegCo voted for Mr Patten - 
and the optimism over an early 
airport agreement allowed the 
governor to claim his policy of 


standing tough with China on 
democracy had worked. With 
conspicuous foreign policy suc- 
cesses elsewhere Beijing could 
not allow Mr Patten's claim of 
victory to stand. 

Indeed over the past months 
Britain's isolation from the 
rest of the world in its policy 
towards China has deepened. 
The UK Is the only permanent 
member of the United Nations 
security council in conflict 
with ra»ina. Over the past six 
months the US, France and 
German have all moved to 
repair relations with Beijing by 
downplaying human rights and 
emphasising trade and eco- 
nomic development. 

British officials say they still 
remain optimistic that at the 
end of day China will agree 
terms on airport finance. They 
are more concerned about the 
port because Beijing appears to 
have made its approval contin- 
gent on the ejection of the Jar- 
dine group from a consortium 
the facility. 

One senior British official 
said it would not improve 
Hong Kong's position as a 
place to invest if business peo- 
ple had to look over their 
shoulder to the political mas- 
ter. 

What concerns the UK more, 
however, is China's attitude to 
the work of the Joint i.imimn 
Group (JLG), a bilateral com- 
mission established by the 1964 
Joint Declaration to enable a 
smooth transfer of sovereignty 
in 1997. The JLG shows every 
sign of being moribund. Since 
1969 it has transacted only two 
significant pieces of business - 
the 1991 agreement cm Hong 
Kang's court of final appeal, 
and the militar y lands agree- 
ment of this June. 

Mr Patten warned last Octo- 
ber, when opening the 1993/94 
session on the LegCo, of a legal 
vacuum in Hong Kong after 
the resumption of Chinese sov- 
ereignty if the JLG did not get 
moving on “localising” Hang 
Kong's law. Progress has been 

g hdfll 


Patten warned 
of a legal 
vacuum. 
Progress has 
been glacial 


There is a raft of air service 
agreements between Hong 
Kong and the rest of the world 
awaiting Beijing’s approval. 
Also awaiting the nod from 
Beijing is the ratification of 
many international agree- 
ments to which Hang Kong is 
currently bound because of its 
link with Britain and which 
will lapse unless China gives 
its approval 

Optimists among the foreign 
secretary’s advisers point to 
the continuous ebb and flow of 
Sino-British relations, of which 
the current period is Just 
another ebb. They foresee a sit- 
uation where the two agree the 
main commercial matters out- 
standing - the airport, port 
development, big business 
franchises which need Beijing 
blessing - later than would be 
optimal but nevertheless In 
time. JLG matters, such as 
localising Hong Kong's law, 
may well be left right up until 
the last months of British rule. 


South African unions embrace pragmatism 

But the new approach is not necessarily permanent, writes Mark Suzman from the Cosatu congress 

O 


n the surface things have 
never looked better for South 
Africa's labour movement. 
After years of an apartheid -regime 
overtly hostile to unfowc , -an openly 
sympathetic government is nbw in 
power. ■' - 

Furthermore, trade union member- 
ship baa started to rise again after 
contracting over the past few years, 
and, at 37.2 per cent of the work fo rce, 
is the highest in toe developing worid. 

• But rather than the celebrations - 
that were expected, the national con- 
gress last week of the -L3m-strong 
Congress of South African Trade 
Unions, the country’s most powerful 
labour federation, proved- to be an 
occasion for heated dteeusaton and 
soul-searching as the 'movement 
sought to redefine its role. r - 
To respectful but unenthnsiaBtic 
applause. In the opening address Pres- 
ident Nelson Mandela praised Cosa- 
tn's nrifr.in toe an&aparfheid s&tttjF 
gle. but called on workers to think of : 
the country's 5m unemployed rather 
than looking just to their own rate- 
tively privileged postbuL 
“Without us tightening our beta 1 it 
.wifi be difficult to get bur economy to 


grow,” be warned. 

The speech served as a reminder of 
the challenges faced by the labpur 
movement in the new era. Despite the 
fact that Cosatu ’s formal .political 
allies, the African National; Congress 
and South African Communist party, 
dominate the ruling? -government, of 
- national unity, ten sions between the 
. labour movement end adminis tra tion 
have risen over a wave of strikes, by 
Cosatu affiliates. 

Although the ANC remams broadly 
suppo r ti ve of labour’s demands, its 
greatest concern is fostering eomomic 
-growth and job creation. To. that end 
if wants to dampen labour militancy 
to encourage foreign investment 
-Continued labour militancy com- 
bined with the country's relatively 
high wages for a developing country - 
-Santo- African workers earn compara- 
ble salaries to workers in successful 
Asian economies such as South Korea 
• and Taiwan,- almost double the pay- 
rate in Brasil and nearly four times 
that in India - sere as a continued 
deterrent to prospective investors. 

■ The ANC has also clashed with Cos- 
atu on the issue of industrial restruct- 
uring, and union members reacted 


with anger to an announcement two 
weeks ago that the government was 
cutting tariffs on car imports by an 
effective 20 per cent They charged 
that the decision undermined work- 
ers’ bargaining position in negotia- 
tions in the strike in the motor indus- 
try, farcing them mto a pranature 
settlemen t . 

■ Underlying these disputes is Cosa- 
tu's fear that the new regime may 
start to adopt an anti-union attitude. 


Its difficulties stem 
from the very 
closeness of its ties 
with the ANC 


Mr Enoch Godongwana, secretary 
general of the National Union of 
Mbtanrorkers of South Africa aigues 
that in Africa political leaders have a 
“history of betrayal" towards organ- 
ised labour after taking power, and 
Cosatu is determined that toe same 
thing should not happen in South 


Africa^ Fart of toe movement’s diffi- 
culties stem from the very closeness 
of its ties to the new government 
According to a report commissioned 
by the National Labour and Economic 
Development Institute, 80 top union 

officials have left toe movement in 
the past year, most of them to join the 

admin ktw it lon. 

So much of the leadership is 
u n proven and lacks the authority to 
control more radical shopfloor lead- 
ers. Several of the recent strikes con- 
tinued well after union negotiators 
were willing to settle when they 
proved unable to rein in their activist 

rnwnharship . 

In implicit acknowledgement of 
tWgj the main outcome of the confer- 
ence was a decision to concentrate on 
what Mr John Gomomo, Cosatu presi- 
dent, calls a “hack to basics” policy, 
focusing an new recruitment, consoli- 
dating local affiliates and addressing 
workrelated grievances. 

. Bnt on toe all-important political 
issue, the congress overwhelmingly 

voted down a proposal to end its part- 
nership with toe ANC and farm a 
left-of-centre Workers party, instead 
electing “to strengthen toe tripartite 


alliance". However, the federation 
was careful to link these resolutions 
to a strong appeal for the institution- 
alisation of collective bargaining at a 
national level via the sooo-to-b&estah- 
lished National Economic Develop- 
ment Labour Council 

This is a tripartite body that will 
contain representatives from busi- 
ness, government and labour. 

So for, therefore, Cosatu seems to 
be indicating its support for consoli- 
dating and expanding the “golden tri- 
angle" of business, government 
and labour that has been 
nurtured over the past two years by 
outgoing finance minister Mr Derek 
Keys. 

“The thread that goes through the 
congress is that workers must be 
involved in all strategic dedrion-mak- 
ing, on toe shop floor, in management 
and in government,” said Mr Sam Sd- 
Iowa, Cosatu general se cret a ry who 
was re-elected unopposed. 

But, the organisation warned, toe 
tripartite alliance was “not perma- 
nent and shall from time to time be 
reviewed as conditions dictate.” possi- 
ble. 




FINANCIAL TIMES THURSDAY SEPTEMBER 15 1994 


NEWS: WORLD TRADE 


Nintendo Unctad criticises restrictive 

alleges . ~ , 

Taiwan economic policies ot west 

By Frances Wtfirams in Geneva importance of effective demand and the trading system, the job. The report pot 
ilv y and invariably treats inflation The report, deliberately Japan, South Korea 


By Louise Kehoe In 
San Francisco and 
Laws Tyson in Taipei 

Nintendo of America, the US 
arm of the Japanese video 
game manufacturer, has Sled a 
suit in California against 
Taiwan's largest semiconduc- 
tor manufacturer, alleging 
counterfeiting of proprietary 
video game chips. 

The suit against Taiwan 
Semiconductor Manufacturing 
Company (TSMC1 of Hsin-Chu, 
Taiwan and its US subsidiary 
seeks damages and an injunc- 
tion to prevent future US sales. 
An estimated 61 per cent of 
TSMC's worldwide sales are in 
the US, according to Nintendo. 
"Our investigation discovered 
counterfeit chips manufactured 
by TSMC contained in illegal 
Nintendo video game products 
in at least nine countries 
across three continents, 1 ' said 
Ms Lynn Hvalsoe, Nintendo's 
general counsel. 

“The discovery of these 
counterfeit chips dearly dem- 
onstrates that Taiwan remains 
a worldwide centre for video 
game counterfeiting, despite its 
government's repeated pledges 
to halt the manufacture and 
sale of these illegal products." 

Mr Donald Brooks. TSMC’s 
president, said the company 
was “shocked and disap- 
pointed” at the allegations. 
“We’re a foundry, which 
means we manufacture inte- 
grated circuits for other com- 
panies based on designs which 
they provide us," he said last 
night. “If there’s been an 
infringement of Intellectual 
property rights, we’re not 
aware of it" TSMC had not 
been contacted by Nintendo, 
he said. 

Nintendo said it bad discov- 
ered counterfeit semiconductor 
chips in illegal copies of its 
Super Nintendo and Super 
Famicom home video game 
machines being sold in Colom- 
bia. Japan, Taiwan and Hong 
Kong. In addition, counterfeit 
video game software and secu- 
rity chips allegedly manufac- 
tured by TSMC were found in 
games being sold in Europe, 
Latin America, and Asia. 

Nintendo said it bad asked 
the US government to request 
Taiwan closely to scrutinise 
TSMC’s exports to prevent the 
export of semiconductor chips 
that infringe on Nintendo's 
intellectual property rights. 


By Frances Wifliams in Geneva 

Leading 
industrialised 
nations are 
^running 
restrictive eco- 
nomic policies 

i iNmn which are sup- 
_UNCTAD_ pressi|Ig globa j 

demand and contributing to 
high unemployment and inter- 
national trade frictions, accord- 
ing to the United Nations Con- 
ference on Trade and 
Development. 

The organisation's latest 
Trade and Development Report 
also unabashedly favours 
demand management and the 
efficacy, at least in some cir- 
cumstances. of government 
intervention to hasten eco- 
nomic development. 

The report forecasts world 
economic growth of only 2.5 
per cent this year, far slower 
than normal in a recovery and 
below the sustainable 
long-term growth rate. 

The current policy consensus 
among western governments 
and the main multilateral 
agencies such as the Interna- 
tional Monetary Fund and 
World Bank neglects the 

U ruguay Round 


importance of effective demand 
and invariably treats inflation 
as a more serious threat than 
unemployment, the report 
says. 

The result has been a persis- 
tent deficiency of global 
demand which has promoted 
"the mistaken. - and mercantil- 
ist - notion that countries 
should seek growth by improv- 
ing their overall competitive- 
ness vis-a-vis other countries". 

The report points out it is 
impossible for all countries to 
improve their relative competi- 
tiveness. 

If demand is insufficient, 
higher productivity will raise 
unemployment rather than 
output, it says. "Global 
demand deficiency is a recipe 
for wasting the world's produc- 
tive potential and an invitation 
to conflict among nations." 

It says financial deregulation, 
has increased the need for 
demand management Deregu- 
lation has encouraged “waves 
of private debt and credit cre- 
ation and contraction which 
have spawned disturbing spec- 
ulation” and produced large 
current account imbalances, 
which have put strains on 
foreign exchange markets 


and the trading system. 

The report, deliberately 
released before the forthcom- 
ing annual IMF-World Bank 
meeting, urges the world’s 
three leading economic powers, 
and particularly their mone- 
tary authorities, to act to boost 

growth; 

• The US “needs to be cau- 
tious in applying monetary 
brakes”, so as not to stifle the 
recovery of investment and 
employment; 

• Western Europe needs to 
cut interest rates "substan- 
tially for a prolonged period*' 
and to postpone tackling 
Inflated budget deficits until 
recovery is well tinder way. 
The European Union should 
delay plans for monetary union 
in 1996 or relax restrictive con- 
ditions agreed at Maastricht; 

• Japan should loosen mone- 
tary policy and expand domes- 
tic der* 131 ^ and consumption. 
Otherwise, the report warns, it 
could soon have unemploy- 
ment levels matching those in 
the US. 

Unctad extends its thesis to 
the developing world where, it 
says, the pendulum has swung 
too for in favour of leaving pri- 
vate enterprise to get an with 


Accords may hurt 
poorer countries 


P re- and posMImgingr Round MFN* tariff profiles 
Importing Unweighted MFN Msxknun WN rate 


Imparting Unmightsd MFN 

market tariff average 

Fre-UR PortrUR 

Agricultural products (non-tropicaJ) 
Canada 13.4% 8.6% 

EU 32J?% 21.4% 

Japan 31.4% 23.1% 

US 10.3% 7.2% 

Tropical agricultural products 
Canada 4-9% 2.5% 

EU 17.3% 11.1% 

Japan 14.2% 9.0% 

US 9-5% 6.5% 

Textiles and dotting 
Canada 19.6% 12.7% 

EU 10-5% a.2% 

Japan 10.7% 6.9% 

US 12.8% 9.1% 

Leather and footwear 
Canada 13J% 9.6% 

EU 8.3% 6.9% 

Japan 29.8% 23.4% 

US 14.0% 11.8% 


By Frances Williams 


wmsnr 


The successful 
conclusion of 
, . the Uruguay 
ry.y Round repre- 
ytf sects a victory 
' "7 T for multilater- 

JMgTAP- Si!!ii5va!i! 

threat of mutually antagonistic 
trading blocs, the latest United 
Nations Trade and Develop- 
ment Report says. 

But poorer developing world 
countries may be disadvan- 
taged by some aspects of the 
trade accords which will erode 
the value of preferential tariffs 
and could raise the costs of 
importing technology and food- 
stuffs. Enabling developing 
countries to benefit from trade 
liberalisation is “a key chal- 
lenge to the international com- 
munity," Unctad says. 


It suggests that help is 
needed in areas such as ser- 
vices, infrastructure, improved 
investment conditions, and 
access to international financ- 
ing: It also highlights the need 
to help developing countries 
with marketing techniques. 

Average tariff levels on 
industrial products in devel- 
oped nations will be cut by 38 
per cent to an average of 3.9 
per cent. But high tariffs 
remain for “sensitive" items 
subject to competition from 
low-cost countries such as 
leather goods in Japan and tex- 
tiles and clothing in the US. 

In agriculture, the industria- 
lised countries have converted 
import restrictions into equiva- 
lent tariffs which will be cut by 
36 per cent over six years. 

According to Unctad ’s analy- 
sis, this has produced duty lev- 
els as high as UXX) per cent for 


266.6% 

438.0% 

650.0% 

999-8% 

30.1% 
162.4% 
589.0% 
536 J9% 


170.6% 

280.4% 

552J)% 

449.9% 

19.3% 

104J>% 

500.7% 

429.5% 


Afl products** 

Canada 

EU 

Japan 

US 


9.6% 25.0% 20.0% 

6.9% 20.0% 17.0% 

23.4% 84.0% 75 2% 

11.8% 61.8% 61.8% 

5.5% 266.6% 170.6% 

6 Ja% 438.0% 280.4% 

5.9% 650.0% 552.5% 

4.3% 999.8% 449,9% 


"Most favoured rattan, Le. axrtudw p iriainU rt tariffs 
“ExcMdtna fuok 

Source; Trade and Oavetopment Apart IBM, Unctad 

same items. Even at the end of iffs on nan-tropical form prod- 
the six-year period both the EU ucts averaging over 20 per 
and Japan will be charging tar- cent. 



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US battle 
ahead over 
dumping 

By Nancy Dunne 
in Washington 

US multmational companies 
and subsidiaries of foreign 
companies in the US have 
mounted a lobbying effort 
against an obscure provision 
in the Uruguay Round aimed 
at implementing legislation 
which they said would lead to 
the levying of punitive anti- 
dumping duties on imported 
products. 

The European- American 
Chamber of Commerce, one of 
the industry groups mobilised 
for the fight, said the proposed 
export sales price (ESP) 
amendment in the Senate ver- 
sion of the implementing legis- 
lation discriminates against 
multinational companies that 
have operations on both sides 
of the Atlantic. 

Hie provision is in a final 
version of the Uruguay Round 
legislation still being ham- 
mered out in a House-Senate 
committee. The committee is 
expected to send It to the 
White Boose in the next two 
weeks. The president wifi then 
almost immediately submit 
the legislation to Congress 
under fast-track authority, 
which means Congress must 
vote yes or no but cannot 

amend ft. 

The ESP provision would 
amend current US damping 
law and change the way prices 
are calculated to determine 
whether a foreign company is 
“dumping” its goods in the US 
market The proposal is sup- 
ported by the Senator Ernest 
Boilings, an unabashed protec- 
tionist as well as Senator Max 
Buncos, usually a free trader ] 
who chaffs the trade snbcom- , 
mtttee. i 

Domestic US companies in 
favour of the provision, 
include steel and ball bearing 
firms which mostly supply the 
US market are calling for a 
strengthening of US trade laws 
to protect US companies from 
“predatory" practices. 

House members are strongly 
opposed to the provision. Clin- 
ton administration officials 
have expressed concern but 
hesitate to weigh in strongly 
while they are rounding up 
votes for final passage id the 
Uruguay Round package. 



m 


gg£'. 




the job. The report points to 
Japan. South Korea and 
Taiwan as cases where govern- 
ment Intervention proved 
highly effective in forcing the 
pace of development The “eco- 
nomic miracle” in these coun- 
tries "was not entirely a mira- 
cle of the market", the report 
says. 

While admitting that these 
examples cannot necessarily be 
replicated, Unctad argues 
policymakers need to accept 
there may be different models 
of development that work. 

The report also points out 
that the Uruguay Round global 
trade agreements will in Hma 
prevent many developing coun- 
tries from using some mea- 
sures employed successfully in 
east Asia such as export incai- 
tives, import controls and 
restrictions on foreign invest- 
ment. 

Developing countries' 
growth should average about 4 
per cent this year, Unctad says, 
though there is a widening gap 
between rapid growth in east 
and south-east Asia and 
Africa's dismal performance. 
It argues that many of Africa’s 
problems reflect weak 
prices and lack of external 


Annual % change 


tfltt 1930 a 19Mb 1900-09 C 


Developed market- 

09 

1 JB 

1.4 

2.4 

2.8 

economy countries 






of which: 






US 

-1.1 

2.8 

3.0 

3.4 

2.7 

Japan 

4,0 

. 1.3 

- 0.1 

0.5 

4.1 

EU 

0.7' 

1.1 

-0.4 

1.6 

2.4 

of which: 






Germany d 

1.8 

25 

-13 

W 

2.5 

Ranee 

0.7 

1.4 

-0.9 - 

1.2 

2 J3 

Italy 

1A 

d9 

-0.7 

. 1-2 

2J2 

UK 

-2J3 

-05 

1.9 

2.5 

2,7 

Central and 

-11.9 

-15JS 

-9.9 

-as 

2.1 

aastam Europe 






Developing 

3 A 

3J3 

as 

3-6 

ao 

countries 






af which: 






Africa 

1.6 

oja 

1.2 ' 

1.8 

1.9 

America 

3.5 

2.7 

2.9 

2 A 

1.3 

Aria 

4.7 

4.8 

5.0 

5.2 

4.6 

Least developed 

0.5 

■ 04 

2.1 

23 

as 


countries - 

China 7,1 11.4 13.4 ' 10.0 8.8 

a Esflmta; b F crm aa l; c Amual awraga p wca n taga change; d tncfcjcfea «t«an 
Ganrany after 1980 

Source Trade and Dem/opmant A part 78M. Unctad 


finance, the report argues. 

It also has doubts about 
recent improvement In Latin 
American growth rates, which 
it sees as excessively depen- 
dent on consumption and 
inflow of foreign funds, mainly 


in the form of high risk “junk" 
bonds and one-off investments 
related to privatisation. 

Had* and Omfcpmonl neper! 1994. AnAtaM 
tan UN SIM* Section (S*hi NDl£MJULZR 
MttMJMmi, CH-1S11 Omm 10. to* *41 
72 COT 0027. or (M PubOcstione, UN PWb. Now 
Vtafc. NY 10017, An +f 272 963 3062, S4& 


Gatt approval 
runs into EU 
power struggle 


t&M 


Just as the 
prospects of 
y swift congres- 
yy.y sional approval 
yU' of the Uruguay 
Round are at 

UNCTAD t** sUrting to 
UNCTAD brighten in 

Washington, the fate of the 
world trade deal faces another 
cliffhanger in Brussels. 

EU efforts to endorse the 
round in time to bring it into 
effect on schedule at the start 
of next year are threatened by 
a complex internal power 
struggle. Unless the row can be 
defused in the next three 
weeks. EU ratification could 
face indefinite delays, even 
deadlock. 

“Time is very short. Any 
slippage means things risk 
going completely off the rails,” 
says one European trade policy 
expert Prolonged uncertainty 
could not only prevent the EU 
from acting in time to imple- 
ment the deal and set up the 
new World Trade Organisation, 
it could also reduce the impe- 
tus for swift ratification in 
other member countries of the 
General Agreement on Tariffs 
and Trade. 

Mr Peter Sutherland, direc- 
tor-general of Gatt, is suffi- 
ciently worried to have visited 
Brussels this week to urge the 
EU to set aside its internal dif- 
ferences and make approving 
the round its top priority. 

In contrast to the US, where 
some in Congress oppose the 
deal, there is widespread sup- 
port for it in the EU Council of 
Ministers, the European parlia- 
ment and national legislatures, 
all of which will be involved in 
ratification. 

The problem arises from a 
dispute between the European 
Commission and the Council 
over the legal basis on which 
the deal should be approved. 
Because of the wrangle, the 
Commission has yet to submit 
a legislative text to the Coun- 
cil. The Commission argues 
that it should be ratified under 
those articles of the Rome and 
Maastricht treaties that give it 
exclusive authority to negoti- 
ate cm trade. That Is disputed 
by most member governments, 
led by France, which is 
increasingly suspicious of the 
Commission and still resentful 
of concessions made by Brus- 
sels on form trade in the Gatt 
negotiations last year. 

They object that the Com- 
mission's existing authority 
does not extend to the Uruguay 
Round's ground-breaking 
agreements in areas such as 
services and intellectual prop- 
erty rights, and that these 
require another legal basis. 

Last spring, the Commission 
asked the European Court to 
clarify the legal situation. It is 
particularly worried that con- 
tinuing confusion could under- 
mine EU participation in the 
Gatt and the WTO, the more 
powerful body due to succeed 
it at the start of next year. 

Some senior Commission 
offi cials now say involving the 
court was a tactical error. 
However, a spokesman for Sir 
Leon Brlttan, the trade com- 
missioner, said: “We are not 
trying to take away sover- 
eignty from member states. We 
just want an amicable, work- 
able arrangement" 

In search of a compromise, 
the German presidency of the 
council has suggested a “coda 
of conduct", des i gned to enable 
the EU to continue to act as 
one to external trade negotia- 


Uruguay Round 
ratification could 
be a cliffhanger, 
write Guy de 
Jonquieres and 
Lionel Barber 


Sons. The code, in the process 
of being drafted, is expected to 
argue for "mixed competence" 
in trade policy between the 
Commission and member 
states, supported by new mech- 
anisms for resolving disputes 
between them. 

The Commission says it is 
willing to consider the code as 
an alternative to a court opin- 
ion. However, Belgium and 
Spain, for different reasons, 
have expressed strong reserva- 
tions about the code, which 
Germany Is due to submit to a 
foreign ministers’ council on 
October 4. 

That may be the last oppor- 
tunity for a deal which would 
enable the Commission to 
withdraw its legal case before 
the court starts oral hearings 
on it a week later. Once in 
train, the court proceedings 
cannot be halted. 

If the court foiled to reach a 
quick decision which also 
endorsed the Commission's 
position, EU ratification could 
drag on until after the end of 
flip year a nd the legal dispute 
could be made stQl more diffi- 
cult. 

In theory, the Council could 
force the issue by amending 
provisions in the Commission's 
Uruguay Round legislation 
with which it disagreed. How- 
ever, it would have to vote 
unanimously and would be I 
unlikely to win (he support of 
Belgium, the only member 
state openly to support the 
Commission's position. 

It is also uncertain how such 
tactics would be received in 
the European Parliament, 
which must be consulted on 
ratification of the round. 

But it is unclear that even 
adoption of the proposed code 
and withdrawal of the Commis- 
sion's court case would be 
enough to clear away the prob- 
lems, in the absence of a wider 
agreement on the legal basis 
for ratification. 

The EETs smaller member 
states have been particularly 
adamant about the need for 
firm legal underpinnings, 
though there is still no dear 
consensus in the Council on 
what form they should take. 

One way in which delays 
could be avoided would be for 
all 12 national parliaments to 
ratify the Uruguay Round deal 
- as they wfll eventually have 
to do - before the end of the 
year. The EU could then 
resolve its internal differences 
at its leisure. 

This was the solution urged 
In Brussels this week by Mr 
Sutherland, who argued that 
the unanimous support for the 
trade agreement in EU capitals 
meant that parliaments had 
every reason to endorse it 

swiftly. 

So far, however, only the 
British, German and Greek 
parliaments have ratified the 
deal. In several other coun- 
tries, legislatures have been 
holding back until the rights 
and wrongs of the EU legal dis- 
pute are clarified. 


India has 
plans to 
liberalise 
imports 

The Indian government said 
yesterday it plans to liberalise 
import of consumer goods, and 
warned industries to prepare 
for stiff foreign competition, 
AF reports from New DelhL 
High import tariffs on con- 
sumer Items such os television 
sets, refrigerators, music 
equipment, soaps and cosmet- 
ics have shielded Indian pro- 
ducers over the years. 

“The time has come to tell 
industry that the government 
cannot afford to provide a high 
level of protection to Indian 
Industry, particularly in the 
consumer goods sector, for on 
indefinite period.” the finance 
minister. Mr Manmohan Si ngh , 
told businessmen in New 
Delhi. 

Mr Singh, architect of India's 
economic reforms since 1991. 
said the government would lib- 
eralise the import of consumer 
goods so they will one day 
become globally competitive. 

He recalled that lowering of 
tariffs was the key issue at the 
Gatt negotiations, which India 
signed in spite of strong oppo- 
sition at home. 

German exports 
set for 7% rise 

German, exports are set to rise 
by around 7 per cent this year 
and next year, according to a 
report from the Hamburg- 
based HWWA research insti- 
tute which predicts the Ger- 
man trade surplus could reach 
around DMBObn (SS2bn) by the 
end of next year, Michael Un- 
demann writes from Bonn. 

This is dose to levels last 
seen in the mid-1980s. 

Imports are likely to grow 
about 6 per cent in real terms 
over the same period, the 
report said, helped by rising 
imports from eastern Europe. 

China in final 
trade talks push 

China has begun what is 
expected to be long and inten- 
sive negotiations with its main 
trading partners in a final 
push to become a founder 
member of the World Trade 
Organisation, due to succeed 
Gatt next January, writes 
Frances Williams In Geneva. 

An initial three-day round of 
tariff negotiations with the US 
ends today. They were aimed 
at resolving outstanding prob- 
lems bilaterally before calling 
another meeting of Gatt’s 
working party on Chinese 
membership to draft the terms 
of entry. 

There seems to be growing 
optimism that the eight-year- 
old negotiations can be suc- 
cessfully completed by the end 
of the year, though officials 
warn many pitfalls remain. 

Ministers agree 
shipping black list 

Shipping ministers from the 
EU nations, the Nordic coun- 
tries, the US, Canada. China, 
Poland. Russia and Croatia 
agreed in Copenhagen yester- 
day to publish quarterly “black 
lists” of ships deemed to be 
sub-standard or which are 
Operated by crews with insuffi- 
cient training, writes Hilary 
Barnes from Copenhagen. 

They also agreed to carry out 
more safety inspection!! of 
ships entering their watere.- 

Europeans win 
Japan contracts 

j European component suppliers 
to Toyota’s UK car-makLng 
operations have been awarded 
several new contracts to sup- 
ply parts to Toyota plants in 
Japan, writes John Griffiths. 

They lift to £i5m a year the 
total vehicle of components 
now flowing to Toyota's Japa- 
nese plants from suppliers in 
the UK, Spain and Italy. 

Toyota yesterday described 
the contracts as a reflection of 
European suppliers’ ability to 
meet quality and price stan- 
dards. 

£37m contract for 
Italian group 

Ansstido Trasporti, part of Fin- 
meccamca, Italy’s state-con- 
troued engineering group, has 
won two contracts worth in 
total more than LSObn ($57m> 
for rail traffic control systems 
m Italy and Sweden, Andrew 
Hill reports from Milan, 

AT Signal Systems, Ansal- 
do s Swedish subsidiary, will 
head the L40bn project for a 
new rail traffic control system 
m northern Sweden. Ansaido 
trasporti and Union Switch 
ami Signal, the group's quoted 

^ su PP‘y toe data 
transmission network and 
pain control system to Swed- 
ish railways. 


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s 


FINANCIAL TIMES 


THURSDAY SEPTEMBER 15 1994 


Animal 
code fails 
to lift ban 

By Deborah Hargreaves 

Ur William Waldegrave, 
agriculture minister, 
suggested tough new measures 
yesterday to improve the treat- 
ment of live anramis on long 
Journeys in the hope of defus- 
ing the row between ferry 
companies and farmers over 
the lucrative export trade. 

But ferry companies 
appeared unimpressed by the 
new code of practice and said 
they would maintain a ban on 
transporting live animals to 
the continent 

The Royal Society for the 
Prevention of Cruelty to Ani- 
mals criticised the new code as 
it is applicable only in the UK. 
The animal welfare organisa- 
tion also questioned the abil- 
ity of the UK authorities to 
enforce the code and expressed 
disappointment that it did not 
contain a maximum journey 
time of 8 hours for animals 
bound for slaughter. 

Stena Seal ink said its ban on 
carrying live animals would 
stay in place until a code was 
drawn np acceptable to the 
RSPCA. Peninsular and Orien- 
tal, which is responsible for 
carrying the bulk of live ani- 
mal exports, said it was still 
committed to banning the traf- 
fic from October 1. 

Fanners hope the ferry com- 
panies will rethink their objec- 
tions to the new code when it 
Is discussed in a consultation 
period over the next few 
weeks. 

Mr Waldegrave said; “This 
is an important initiative. In 
the absence of agreed and 
enforceable ED measures, I 
shall be amending the law to 
give teeth to the enforcement 
of best practice already 
required by our national con- 
trols.’* 

The code would introduce a 
new criminal offence for haul- 
iers falsifying journey plans. 
The measures will compel 
hauliers to fill in a standard 
journey plan for all trips over 
15 hours. Plans for departure, 
arrival times and staging posts 
will have to be approved by a 
government vet 
Farmers groups have 
warned that they stand to lose 
up to £200m in the export 
trade of live animals If the 
ferry companies' bans are 

maintained. 


★ 


NEWS: UK 


Chacnellor ‘given estimate’ of index ahead of Friday’s interest rate rise to 5.75% 

Inflation rise triggers share 


By Peter Norman 
and GfflanTett 

A slight rise up in UK retail 
price inflation and a bigger 
than expected drop in unem- 
ployment last month 
unleashed fears of further base 
rate rises and unsettled finan- 
cial markets yesterday. 

The Central Statistical Office 
reported that the retail prices 
index jumped 0.5 per cent 
between July and August and 
was 2.4 per cent higher than in 
August last year. Underlying 
inflation, defined by the gov- 
ernment as the RPI excluding 
mortgage interest payments, 
rose 2.3 per cent in the 12 
months to August. 

Both annual rates of infla- 
tion were 0.1 percentage point 
higher than in July and above 
the average expectations of 


City of London analysts, who 
had earlier forecast a slight 
drop. • : 

The news triggered a sharp 
decline in shar e and bond 
prices. The FTSE-10Q index lost 
4L6 points to dose at 3.07&8 
and the 10 year bench-mark 
government gilt edged stock 
fell points. Sterling wob- 
bled. losing a pfennig against 
the D-Mark on the news, but 
later closed broadly unchanged 
with losses against the D-Mark 
offset by gains against the dol- 
lar 

Yesterday's nnaurfai market 
jitters were compounded by 
news of a sharp 3A200 fell in 
seasonally adjusted unemploy- 
ment last month to just under 
2£m, which appeared to pro- 
vide farther evidence of fast 
growth in the economy. 

Lord Lawson, chancellor 


from 1983 to 1989, added to 
base rate anxiety by writing in 
yesterday’s London Evening 
Standard that “this week’s half 
per cent hike is most unlikely 
to be the last”. 

Further unsettling markets 
was a disclosure from a CSO 
official that Mr Kenneth 
Clarke, the chancellor, had 
been given a preliminary esti- 
mate of the RPI data last 
Wednesday before he decided 
on Friday to raise bank base 
rates to 5.75 per cent from 5.25 
per cent 

This appeared to take some 
of the lustre away from the 
Monday's base rate increase. 
Some City commentators 
suggested that the rate rise 
might have been a reflex to 
current problems and not, as 
the chancellor said , a pre-emp- 
tive move to nip incipient 


inflationary pressures in the 
bud. 

However, speaking on the 
BBC radio's Today programme 
yesterday, the chancellor 
insisted that the latest infla- 
tion and jobless figures wee 
“not relevant to last week’s 
decision”. Instead, be was 
lo oting to posable events 18 
months to 2 years ahead. 

The (SO said the upwards 
move In inflation reflected 
sharp increases In prices for 
clothing mtd househo ld goods 
after heavy discounting in 
July'S summ er sales. Looking 
at the trend “prices have been 
broadly stable since May”, offi- 
cials added 

However, the jump in infia- 
tion last month fueled fears of 
farther price rises in Septem- 
ber. “We are at a turning point 
in inflation," said Mr Geoffrey 


fall 


Dicks, riilrf UK economist at 
Natwest Markets. 

Yesterday's retail prices 
report overshadowed the posi- 
tive labour market news. Sea- 
sonally adjusted unemploy- 
ment fell in all UK regions and 
readied its lowest rate since 
January 1992. The unadjusted 
“headline" jobless total, which 
normally rises in August, fell 
last month by nearly 5,000 to 
2,638^67. 

Wage inflation stayed sub- 
dued, with average earnings 
growing an annual, underlying 
3% per cent in July, unchanged 
from June. 

Mr Michael Portillo, employ- 
ment secretary, said: “Provided 
costs and Inflation are kept 
firmly under control, all parts 
of the UK can look forward to 
more prosperity and more 
jobs". 


Clarke rewrites election strategy for Tories 

Philip Stephens wonders if the chancellor’s nerve will be matched by his prime mini ster 


fixes, no loosening of the mon- Mr Major sold the pass wheat 
etary reins. Everything is 


S o that's it A large chunk 
of the Conservative party 
is living in “cloud-cuc- 
kooland”. Those Tory rank- 
and-file MPs foolish enough to 
join local activists in demand- 
ing tax cuts are not engaged in 
serious politics. 

Mr Kenneth Clarke, the man 
who actually decides what 
comes out of Gladstone's Bud- 
get box at the end of Novem- 
ber, has spoken. His party 
should stop whining. 

The d gnitinmffp of the chan- 
cellor of the exchequer's words 
on taxes and his action on 
interest rates runs deeper than 
his obvious concern to mas- 
sage pre-Budget expectations. 

Most in the Conservative 
party do not yet realise it but 
Mr Clarke quite deliberately 
crossed a political rubicon this 
week. He has rewritten the 
government's electoral strat- 
egy. 

Viewed from his home at No 
11 Downing Street, the Tories' 
hopes of clawing back its 
unprecedented 34 point deficit 
In the opinion polls now rest 
on delivering year in, year out, 
precisely what the chanrpnnr 
has promised: steady growth 
and low inflation. 

There can be no quick tax 


staked on an unexciting but 
durable economic recovery and 
a return to sound public 
finances. Competence and cred- 
ibility are to be put before 
transparently crude electoral 
bribes. 

It must be said that as far 
fhte year goes the rf»«ncel1nr 
was stating the obvious. No- 
one with any sense at West- 
minster expected tax cuts in 
November. Nor is there any 
prospect of a reversal of the 
increases already in the pipe- 
line. 

Public borrowing should 
undershoot the official ra shn 
forecast but the Treasury win 
stfll spend some £30bn more 
than it collects in taxes. So for 
all the talk about rifts between 
neighbours. Mr John Major is 
as persuaded as his loquacious 
chancellor that now is not the 
moment for tax hanrinniS- 

As for this week’s rise in 
interest rates, Mr Major had no 
choice. Prime ministers never 
like higher borrowing costs. 
The present one, facing the 
deepest electoral chasm since 
opinion polling began, must 
really hate Hwm 

But that is to miss the point. 


he agreed to allow publication 
of the minutes of Mr Clarke's 
monthly chats with Air Eddie 
George. 

The conventional wisdom is 
that publication bad weakened 
the Treasury's position vis-a- 
vis the Bank of England. That 
is true, though it is important 
to distinguish the official Trea- 
sury (which invariably shares 
the bank's judgment) from the 
chancellor of the day (who may 
well not). 

B ut the important impli- 
cation of tiie change is 
that it removes the 
prime minister's power of veto. 
Once the chancellor and bank 
governor are seen to agree, the 
occupant of No 10 cannot 
demur. 

So those searching for Down- 
ing Street conflicts, real or 
hnagirmfi, sho uld look to the 
stance of fiscal policy as the 
point of tension. Not now, but 
in November of 1995 or 1996. 

Mr Clarke has absorbed the 
Treasury orthodoxy that seri- 
ous tax-cutting may well be 
impossible before an election 
due by the spring of 1897. He 
has concluded that delay might 
turn out to be good politics as 


well as prudent economics. 

After the broken promises of 
1992 the voters don’t believe 
this government. Much better 
then to go info an election with 
the public finances in strong 
pn p ngh shape to allow a credi- 
ble promise of tax cuts that 
will stick, than to try to con 
the voters with a transparently 
temporary cut before polling 
day. 

There is a broader political 
strategy here. In Mr Clarke's 
inmd the government must do 
three thing s before the election 
if it is to have a hope in hell of 
winning. 

Alongside the recovery, the 
voters need to feel secure that 
it will last Then they must be 
convinced that next time the 
government, for once, will 
deliver on it manifesto prom- 
ises. 

It all sounds pretty sensible 
stuff. But of course thou is a 
catch. What may sound per- 
fectly logical from a politician 
with a reputation for keeping 
his nerve may not hold quite 
the same appeal for a party 
terrified of electoral defeat 

If Mr Clarke is not careful 
people will soon be drawing 
camparisions with the then Mr 
Roy Jenkins' stewardship of 


the Treasury in the late 1960s. 
He balanced the budget and 
lost the Labour government 
the 1870 election. 

The briefest glance at the 
agenda for the annual Tory 
conference in Bournemouth 
n ext mo nt h reveals the depth 
of the angst among the party's 
footsoldiers. 

Local activists still willing to 
tramp the streets in support of 
the most unpopular govern- 
ment in living memory want 
some good news to sefl. They 
are fed up telling a disbelieving 
and disgruntled electorate to 
bide their time. 

Those with a preference for 
bribery aver hair-shirt econom- 
ics will find also plenty of 
affipg around the caMn^t table 
When the time comes Mr Major 
may be among them 

Mr Clarke, of course, hopes 
the choice will not be neces- 
sary: that public borrowing 
will come down fast enough to 
remove the contradiction 
between fiscal prudence and 
tax cuts. 

There is a good chance It 
wilL If not? Well Mr Major 
could always promote Mr 
Clarke to the foreign office 
when Mr Douglas Hurd stands 
down in a year or so. 


Britain in brief 



Jungheinrich 
unit gears 
up for US 

Boss Group, the UK lift truck 
producer acquired In May by 
Jungheinrich of Hamburg, is 
a big investment 
plan that would turn its 
Leighton Buzzard factories, 
north of London, into a 
world-class manufacturing 
centre. The company also 
(dans a big assault on the US 
lift track market, which the 
former Lancer Boss Group had 
rover folly exploited. 
Jungheinrich acquired the 
Boss business, and its former 
subsidiary Steinbock Boss, 
following their controversial 
receiverships In April. 


Mirror Group 
into cable 

Mirror Group Newspapers wifi 
antiflnnpo today that- it plans to 

Ijrnnnh a national cable 
television which will not be 
available to satellite viewers. 
The channel will provide 
24-hours a day entertainment 
with British-made 
programmes. It is the first 

■d gnifirartt move in fo 

television by the popular 
newspaper group since the 
death of the former owner Mr 
Robert MaxweH. 


Private nuclear 
plant ‘possible’ 

It may be possible to build a 
farther nuclear power station 
In the UK entirely with private 
sector finance, according to a 
report by N JL Rothschild, the 
City merchant tmnir- 
Tffie report, commissioned by 
Nuclear Electric, the 
state-owned utility, will be 
submitted to the government's 
nuclear review which doses at 
the end of this month. In its 
own submission to the review 
earlier this summer, NE said 
that a new unclear power 
station could not be built 
without a measure of 
gov e rnm ent financia l backing. 



Probe into 
ferry accident 

Accident investigators will 
today step up their inquiries 
into the collapse of a passenger 
walkway which killed six 
people and injured seven 
others boarding a ferry at the 
Kent port of Ramsgate, on the 
south coast of England. 

The collapse of the walkway 
occurred as p ass en gers wane 
boarding a Belgian ferry, the 
Prins FUip, just before lam an 
Wednesday. The end of one 
section of the walkway fell 50ft 
onto a vehicle ramp which ran 
on to the ferry. 

The incident occurred less 
♦h»n three weeks after a blaze 
on a cross-Channel ferry and 
raised once again the issue of 
ferry safety. Port Ramsgate, 
responsible for quayside 
equipment at the port, and the 
Sally Line, which operates the 
ferry bit by the earlier blaze la 
which one person was Injured 
are both part of Sally UK. a 
Ftnnish/Swedish shipping 
group. 


Channel 5 
consortium 

A major new consortium has 
been put together to bid for 
the Channel 5 licence led by 
Can West Global 
Communications, the 
Canadian broadcasting group 
with interests in New Zealand, 
Australia and Chile. 

The consortium, it is 
believed, brings together three 
large UK corporations with no 
significant Interests in 
broadcasting but which are an 
members of the FT-SE 100. 

At the same time Virgin 

CrtnurinniraHnn^ part Of Mr 

Richard Branson’s Virgin 
Group, has appointed Mr 
Jeremy Fox, to develop 
Virgin's broadcast Interests 
including a possible bid for 
Channel 5. 

Mr Fox, will remain 
president of Channel 9 
Australia, the international 
arm of Mr Kerry Packer's 
television interests. 


Surge in 
Gaelic interest 

Bard na flawig e , the Dublin 
body promoting the Irish 
language, has set up a 
freephone information service 
after reporting record numbers 
are studying Irish. 


When an airline has a young fleet, 
experienced pilots, attentive cabin crew, 
and the pickiest ground technicians in the 
world, it is free to concentrate on what is 
really important: 





9 



) 


FINANCIAJLTIMES THURSDAYSEPTTEMBER 15 1994 


MANAGEMENT: MARKETING AND ADVERTISING 


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D ewdoscx targdfag 

Individ mils is mw» of the 
reasons why Junk man is less of 
a problem to the eyes of UK 
consumers than it used to be: 
what might be junk to art* 
person could be welcome 
correspondence -to another. 

The industry’s improving 
reputation is also down to the 
fact that it appears to be 
sticking, by and large, to a . . 
system of self-regulation, says 
the Advertising Standards 
Authority, the watchdog which 
monitors the sector. The roles, 
which came into force in 1991, 
require companies to males sore 
their info rmatio n fg accurate and 
np-to4ate and consumers know 
why it is bong collected. 

Says the ASA: If a company 
intends to pass an Hi formation to 
anyone else or use it for a 
significantly dHTwBnt propose, 
consumers should be given an 
opportunity to opt out If a . 
company decides to use 
information it already has about 
someone it must gain permission 
first Consumers should also be 
able to recognise the 


within the same group.” 

Companies regularly have to 
comb their records for 
consumers who hav e stated, 
through the Matting Preference 
Service, that they do not want to 
receive mailings. The rules, 
which build cm the requirements 
of the Data Protection Act, also 
apply to press advertisements 


A recent ASA survey found 
that, out of a sample of 50 press 
advertisers, five intended to 
make their lists available to * 
third parties and one hiM to 
offer an opt-out to consumers. 
Three advertisers were peering 
on information to other 
companies within their group 


but were not making this 
sufficiently clear to consumers. 

Out of a sample of 50 direct 
matters, seven were collecting 
information to rent out, but the 
opt-outs available to consumers 
were found £0 be reasonable. 
Rates on the Mafling Preference 
Service were being observed by 
both groups, found the ASA. 

Diane Summers 


S ome ET readers will have recently 
received a missive from Lloyds 
Bank inviting them not to make a 
move “until you check with us**' 
about the company’s buildings insurance. 
They probably never gave a thought to how 
closely targ eted they were: they were not 
hot prospects, or even hot, hot prospects. 
They were hot, hot, hot prospects. 

T ar g et ing, toe eHmirwftaa of toe hated 
“Junk” from *5unk mail ", is the holy g rai l of 
direct marketing, lie better ft is done, the 
less the exercise costs, the fewer consumer 
noses are put out of jefat and the higher toe 
re^mse rate ao& Now marketers are cont- 
using date Jhm a wider variety of sources 

— including the gold Tirmoc of information 
that usually he unexploited in their own 
accounting and other records - to get closer 
to that holy grail Lloyds Bank Insurance 
Direct’s h nflffing>mnraH«» campaign is an 


Alan Mitchell searches for the holy 
grail of direct marketing 

Some like 
it hot 



To isolate its best prospects Lloyds first 
compared the prices of its panel of insurers 
with the c a mp etifl on - postcode district by 
postcode district. If one of its panel was 30 
per cent cheaper than the average competi- 
tor price m Siat postcode, the postcode was 
identified as “hot”. Ute rest were d ropped. 

Next, Lloyds trawled its own customer 
records to Identity which of these “hot" 
postcodes had recorded higher than average 
conversion rates from inquiry to purchase 
and lower claims rates. That produced a 
refined “hot, hof* hat. 

Then, to maximise fhs pffiripi yy rf farfit* 
door-drops, it used recent census , date to 
identify those postcodes whan property val- 
ues were higher than average, and where 
there were particularly W g^ u m c entr a ti ons 

of home ownership- The resulting “hot, hot, 
hot" targe t areas look Eke a few tiny iso- 
lated dots in a postnoded map of the coun- 
try. But they are a ateeahle market 

Further, by using data f mm 3 lifestyle 
survey company, NDL, which generates 

flwfawltfH I r rih n i w Hnn, TnrimUng - brand pref- 
erences and house moving dates from mil- 
lions of nawad individuals each year, 
Lloyds has been writing to “hot, hot, hot" 
individuals who moved house 12 or 24 
months ago. They are particularly ripe 
because their insurance is likely to be due 


for renewal Philip Lossy, Llpyda Bank 
Insurance Direct general manager, says: 
“We want to pro gre ssiv ely target our mar- 
keting expenditure where we get the maxL 
•mum hffnrfit- This is beautifully gfoipte We 
have identified the people who we can offer 
the best deal to, and now we are talking to 
tham _ nrtd fii» r w m V« tvra markedly bet- 
ter.'* 

Technical developmeaits such as ♦*><« are 
doing more than g w wwi in g better response 
rates. According to Chris Lovell, managing 
director of Lovell Vass Boddey, the market- 
ing consultancy that helped Uoyds In tide 
project, future media planning could be 
shaped by tWn type of “rnlpmwmrfcprtng " 

P osters can be sited more accurately 
on key local roadside sites, for exam- 
pile. Bus-side ads can be placed an 
routes travelling through the postcodes in 
question. “Too often," says LoveD, “adver- 
tising effectiveness is a twaHw of post-cam- 
paign evaluation rather than pre-campaign 
planning.” 

Others are going further, trying to move 
their direct marketing beyond its tradi- 
tional m 1 «wi promotion by w«n role to 
become wdaticgedri ph ^Hfag exercises. 

Next nwnHi, for example, tow iw park at 
stately home Packington pan , near Bir- 
mingham, will fin with Jaguars, Mercedes 
and other luxury cars. After refreshments, 
their owners will be chauffeur-driven to the 

door of the Motor. Show, a privilege not 


even granted to big axbtPbftors. Before golrg 
home, they wfil be «Me to play at chauf- 
feurs themselves - driving BMW’s new 
Seven Soles car. 

Over tire next few years BMW will keep 
in touch with Hym carefully pro- 

spective customers, sending them glossy 
magazines, stories about BMW, and the 
occasional chance of a freebie such as the 
Motor Show. By the time they come to 
replace their old car, BMW hopes it will 
have persuaded them to buy its new car. 

The next step is to combine both 
approaches, using date from a variety of 
sources to target individuals for longterm, 
direct, rel ati nwghi pJm Pdmy pnog n rn imug — 
as Ford is now attempting. In July it sent 
out quest i o nn aires to lm wamart individuals 
- people who it knew from lifestyle surveys 
asrentiy drive rival brands. 

The Ford Driving Survey asked them 
details such as car a gp , replacement inten- 
tions, most tmpndani in car 

purchase, marital status, occupation, num- 
ber Of children arw^ Hw«Tpx> 

Existing customer records were then 
examined, using sophisticated modelling 
techniques to identify tfr»> key characteris- 
tics of who buys which Ford models, and 
why. This information was then matr-hiad to 
the 200,000 Driving Survey replies, so that 
the peo ole most hkelv to choose Ford 
model could be selected for the right sort of 
soft-sell mafiing. 

Says Anthony MarseOa, strategic analysis 



manager at direct marketing specialist 
Wunderman Cato Johnson, which runs 
Ford’s (Bract marketing operation: "With 
car baying cycles you need to keep in touch 
with a potential customer over three years 
or more. When it gets to the point where 
they are going to buy. we will communicate 
a selling message to than." 

Marsella estimates that Ford, by fine- 
tuning its technique, bo* doubled its direct 
marketing efficiency over the past five 
years. But such technical developments are 
also having a more profound effect they are 
beginning to rh»wg» the way some market- 
ers ♦Mwlr about i m rto H ng 

Says Grant Harrison, loyalty controller at 
Tesco, which is currently testing a Club 
Card with enormous date-gathering poten- 
tial: “Marketing is moving very signifi- 


cantly away from trying to change or twist 
consumers" behaviour to understanding 
them and giving them what they want” 

The ultimate aim, says Mark Patron, 
managing director of CMT, one of the m«*n 
lifestyle survey companies, is to use tech- 
nology to mimic the days of the old corner 
shop. “The owner would say, ’Hello Mrs 
Brown, how’s Doris? I know she likes 
orange sherbets. Now we’ve got seme hmwi 
flavour. Give her this, and see If she Hhm 
it" 

Most marketers are still a long way away 
from that but as they get closer Mrs Brown 
may find herself investing as much 1*1* 
end attention in chnnaing which organisa- 
tions deserve her trust and information - 
her “relattanahip’' - as dm does in choosing 
which brands deserve her hard-earned cash. 


T he formula is simple, yet 
seductive. A celebrity voice 
yon recognise, but cannot 
always place, describes a simple 
recipe, over pictures of beautifully 
chopped ingredients «fa an » t g in a 
pan. Once teste bads and curiostiy 
have been the camera 

puBs bad: to reveal the celebrity. * 
Former -UK chancellor Denis 
Seeley's recipe for scrambled eggs 
and smoked salmon, and opera 
singer Dame KM Te Kanawa’s fer- 
feBe paste with Panna ham have 
all' featured- in what i Setosbury, 
the UK’s biggest food retaOer, says 
is its most successful series of 
advertisements. 

Some 55m cards detailing the rec- 
ipes have been picked up by cus- 
towers An SaSnslrary’s stores. More- 
over, tiie ads have often cre at ed 
markets for new products. 

In May 1992, Sainsbury sold 


Simply take one celebrity. . . 

Neil Buckley examines Sainsbury’s recipe for a successful TV campaign 


30,000 cartons of atone fiafche; the 
following wmft, after ads showed 
act ress Catharine ZeteJonss using 
the product to make fresh fruit 
brfllfe, it sold lm cartons. 

The ads have also incre as ed sales 
of more fanffig’’ products. Ike lat- 
est -'former tennis star Sue Bark- 
er's turkey and apricot bake, 
launched last wed - resulted in 
sdes of 74 tonnes of tmicey strip s. 
22 times tiie normal weekly sale. 
Last year, Sainsbttry bought all 
available supplies of Italian pesto 
sauce to meet demand following 
arhiisr Tnl ITnmhii recipe for 
taptlafotip with bacon and pesto. 


Anthony Bees, Sainsbury’s mar- 
keting director, says increased 
product sales were originally a 
by-product of the adverts, launched 
in May 1991 as a “strategic" cam- 
paign to unhirwv R afadwr y*« ium> 
and reputation. 

Trial campaigns explicitly 
em phasising Safosbmy’s perceived 
strengths of quality and rdaMUty, 
heritage and tradition, had pro- 
duced negative reactions among 
viewers. 

Wlm Dovtt Abbott, chairman of 
jS a tns bmy ’s ad agency Abbott Meed 
Vickers, thought np the recipe 
theme and persuaded a friend,- tele- 


vision presenter Selina Scott, to 
front the first one, Sdnsburr Eked 
the ad but did not think it met the 
brief. Customer research proved 
otherwise. 

“We discovered the way to con- 
vince people was not to tell them 
anything," says Rees. "People 
could pull out of tiie ad what they 
wanted to." 

Even more si gnifi c ant ly, the ads 
fulfilled a "strategic" and "tacti- 
cal" role, gnhan ring Sainsbury’s 
name while pers&ading shoppers to 
buy products by the troDeyload. 
Bees says they have more than jus- 
tified the estimate d £30m spent on 


the 17-ad series. 

Sainsbiuy has moved away from 
ad vertisi ng in women’s msgarin— 
for new product launches, tying 
these instead to an a p p ro pri ate TV 
recipe advert. That is one re as on 
why recipes are not, whatever 
viewers may think, celebrities’ 
own. They are devised by Sains- 
bury’s recipe department, with help 
from cookery writer Delia Smith. 
Dishes must be “aspiration al" 
(mozzarella pasta penne is fine; 
spaghetti bolognese is not); 
"achievable”, even for novice 
cooks; and “affordable” - less than 
£2J>0 per person. 


They must look appetising at 
every stage of preparation. Plans 
for a Tiranrisn recipe evolved into 
mascarpone and Ume torte because 
Ttramfsu looked a soggy mess in 
the early stages. 

Thai attention to detail and the 
finely Judged camerawork are rea- 
sons for the ads’ success, says Win- 
ston Fletcher, chairman of the 
Advertising Association. "Bedpe 
adverts are a Mt of a dlchA" he 
says. "What Sainsbnry has done, 
through the style, the esoteric 
ingredients, tiie time of voice. Is to 
update the formula.” 

The food, says Bees, is always tiie 
real star of the cnmmerdaL The 
celebrity adds Intrigue and pro- 
motes trust among viewers. 

Bees adds there is ttttie sign so 
far, of customers growing bored 
and several more ads are planned. 


PEOPLE 


EBRD’s Ljungh leaves for Morgan Stanley 


Sweden’s Anders ljungh, 52, 
Who has been vice-president of 
finance since the European 
Bank for Reconstruction and 
Development opened for busi- 
ness, is returning to the pri- 
vate sector as a senior adviser 
to Morgan Stanley. 

ljungh (right) is the second 
senior EBRD o fficial to leave 
within the past eight months 
and hfc departure wffl. l ead to a. 
tarthar reshuffle of the EBRD’s 
relatively new top manage- 
ment team which is stm set- 
tling down after the abrupt 
exit of Jacques Attali, the 
EBRD’s first president in July 
1993. Earlier this year, Mario 
Sarcmelli, 59, number three in 
the EBRD, returned to Italy to 
frnirp up the /’bflimuififihTp of 
Banca Nazionale del Lavoro. 

Sarcmelli was not replaced. 


However, Ijungh’s departure 
canno t be ignore d an d the 
EBRD’s board of directors is 
expected to decide on his suc- 
cessor at its board meeting on 
September 20. Bart Le Blanc, a 
48-year-old Dutchman who is 
the Bank’s secretary general, 
has been tipped to take over 
from ljungh. 

Meanwhile, a report in 
italy’B U Sole newspaper yes- 
terday suggested that Antonio 
Costa, who used to work in the 
European Commission and Is 
currently employed by Ferrero, 
had been up to fill Le 
Blanc’s job. Al thou gh appoint- 
ments to the EBRD are sup- 
posed to be made on merit 
there has been a feeling that 
Sardnelli’s exit moans an Ital- 
ian is Wirriy to be a front run- 
ner for the next big Job which 


iwtmi np at tiie EBRD. 
Ljongh’s combination of 

Hwnniffriiil 1 hi liking Kirilin and 

knowledge of multinational 
development institutions will 
consolidate Morgan Stanley's 
presence in the Scandinavian 
market and help wypfluH its 
international business with- 

fiiyiipcto l Hinyryip^ imrifirf 

institutions. In addition to Ms 
Morgan Stanley post, he will 
sit on the boards of Tefia, the 
Swedish telecoms company, 
Nordbahken, a ^ commercial 
hank, and wfll be chairman of 
KM. a Swedish engineering 

company. 

Before joining the EBRD, 
ljungh spent 15 years with 
Svenska w<md» i fa 

Stockholm and was head (rf Its 
international .- activities 
between 1985 and J99L Before 



becoming a commercial banker 
he worked act the World Bank 
in Washington, serving as a 
personal assistant to Robert 
McNamara, the former presir 
deal He aian ran the Bank's 
East%AMca programs depart- 
‘ .time. 



Sunset Holidays, the tour 
operator winch plans a flota- 
tion next spring, has 
appointed Sir Gilbert Thomp- 
son (above) as non-executive 
chairman. 

Sir Gilbert, former chief 


wnmiiro of Manchester Air- 
port, te to take up the post on 
October L Sunset, which is the 
UK’s eighth largest tour opera- 
tor, fs also appointing John 
. Skinner, commercial director 
of the charter airihie Air 2000, 
to its board. 

Air 2000 is part <tf the Own- 
ers Abroad group, which is 
being renamed First Choice 
Holidays. Sunset, which car- 
ries 300,000 passengers a year , 
is' Air 2000’s largest external 
customer. 

■ life in the motor trade can. 
be terribly incestuous^ No 
sooner has Rover chairman 
George Simpson taken the 
Hahn of Lucas Industries, than 


Bernard Carey, Lucas’s three- a httsof a bead stmt Not only 
tor of corporate ooirnnuniqa- . te^Lucaa one of Rover’s major 
turns, announces that he is cff-^auppHas Jhit it is based only 
to be Rover’s top sphvdortar. "^ffiree miles «way from Rover’s 
Carey, 39. who started hfe a8 ;^rflhnli, headquarters, 
an economist'. Witii -British -v 

moves to Rover nertjnonth tb v^ABsteir Cbxhas been 
take over from, John PhRen. group strategy 

who is retiring. He gets a aeat (fir ectar of B LUE CIRCLE 
on the Rovey board. he moves from 
Pullen, who - has , been at ” McESusey & Co. Jeremy Watts 
Rover for eight years,' was : -is a ppoi n ted md of Blue Circle 
brought over/frehi British ; 'SaggRaffirooms in succession to 
Shipbuilderfpby Sir Gitiuh; 

Day, a formeaf chief exacutiveV;^ ' B6b Tjdo-Jiormerty director 


COMPANY NOTICES 



Following the DIVIDEND DECLARATION by Fort Motor 
Company (U.S.) on 14 July 1994 NOTICE b now given 
that the following DISTRIBUTION wil become payable on 
or after 15 September 1994. 


1-12500 Cents 
0-16875 Cents 
0-95625 Cents 
£0-00614952 


Grass DWribuSon per unit 
Less 15% USA Wlthholdfog Tax 

Converted at $1,556 

dakns should be lodged with the DEPOSITARY; National 
Westminster Bank PLC, Basement, Juno Court, 24 Presoot 
Street, London El 8B8 on special forms obtainable from 
that office 

United kingdom Banks and Memben of the Stock Exchange 
should mark payment of the cfvidend In the appropriate 
square on the revaree of the certificate. 

All other dtemants must complete the special form and 
present this at the above address together with the 
certific a te^) for marking by the National We stmi nster Bank 
PLC. Postal appticatlons cannot be accepted. 

Dated 15 September 1994 


CONTRACTS & TENDERS 


of the stateowned sbiptimldfcig 
business whoWas;'aakecl by~the 
Government! to sort mtt 'BL, 
Rover’s predecessor. ; : “i. ’ . 

Carey was 1, -headhunted for 
tiie job but admits teat he had 


^analgesics and 
* " States worldwide 
1 m^t, has been 
ppafoterfcomiaerdal director 
f RFJONR POULENC 



Hambro takes over from 




Rupert Hambro, 51, has ta k e n 
Over the rimir pianBhlp of J.O. 
Hambro & Co following the 
death of his father, Jocelyn 
Hambro, who founded the mer- 
chant banking boutique. 

James Hambro, 45, su cceeds 

- his brother as managing direc- 
tor of the firm, which has 
around £5Q0m of investment 
1 ftm ds - unriffl’ management. 

J.O. Hambro was set up in 
1966 by Jocelyn Hambro and 
his three, sons - Rupert, Rich- 
ard a™* James - when they 
split off from the much bigger 
Haxobros group to branch out 
on their own. Jocelyn had 

chaired Hambros between 1970 

and 1963 and Rupert had been 
rimirpjq w between 1983 and 
1988- 

James Hambro's appoint- 
ment is gnnfhfli- sign that J.O. 



■ ••••■■ ■ 

‘ Wffifh a ri Anthony, formerly 
direarifoeB ent In vestment 
s®4fo»farflSBC Asset 
in February 1986^J|fei|e^Mmagcinent Europe, has been 
Magan, a- Corporate ^MaceX < M>for nfe ddHBcta, marketing 
chief at Morgan (^gnfelL Atete JGLIOT BAER 
Irby, a framer deptity chair-’ ^fflygratfESTS. 


Hambro and its associate comp 
pany, J-O- Hambro Ma^n, 
which spedahees to pnmdtag 
corporate finance advice, are 
starting to go their separate 
Hambro Mflfiftn wbs set 


man of Sedgwick, and Riqwt 
and James Hambro. . 

Rupert (Left) was chairman of 

Hambr o Magm ™ni June 1993 
and James Hambr o has been a 
joint managing director. By 
taking on his new responsibili- 
ties at J.O. Hambr o, James 1ms 
followed his brother and 
Btepped " down from the 
Hambro Magan board. 
Although the tiro firms remain 
close, growing City conce r ns 
about potential conflicts of 
interest between the invest- 
mwnt management and corpo- 
rate finance sides of merchant 
banking type businesses are 
freeing them to adopt a more 
independent stance. 


W-PeterBaynham, investment 
iJperations manager of 
NORWICH UNION, has been 
Appointed a director of 
Norwich Union Investment 
Management 

■ Nobuo Tonetanl, who had 
been md of DAIWA Europe 
from 1966-1990, has returned as 
driaf exec uti ve; he succeeds • 
Kafeunari Rembutsu who 
moves to Daiwa Securities 
Trust in New Jersey. 

■ Pippa Mason, formerly 
vke^iresident in Merrill - 
lyndi’s rwjdtel market s group , 
is appointed director in SWISS 
BANK CORPORATION’S 
raptfal hmiW» origination' 
group in London. 


COWANffiARARANAENSE 

DEBERCU 


COPEL 


SALTO CAX1AS HYDROELECTRIC PROJECT 
IGUAQU RIVER 

INTERNATIONAL MDDfeIG 0202 
PENSTOCKS 
CALL FOR BIDS 

COMRANH1A PARANAENSE DE ENERGIA - COPEL, (nfonns that an 
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opantedii stait^p of four (4). 1 1 n m cSameter Penstocks lor t» Salto 
Owtea By p l an«,loca>atf at CapMoLaanttwHanjuas ant Nova Pitea 
Oolguapi^countyboriar, In the State olPaiani- BrariL - 
Tta total iteWS ol to supply is appiortmataly 1400 imbte tons ol stetfL 
TNalowwl price typo MunaUonal bidtog teopan solely toMtaftal 
romprti or joint vantoea. 

TtoBUItoamaittt,wUbeav«itabletotikfciwsfromSwilamb0rS. 1994 to 
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USSiSOjOO (on* hundred fifty American Dafiara),a(lhofokming 


1 $04 


1 da Otaraa da Garaffe 
■ l JftuaVohafltfilaa(laP4Ma,233-Pandw- 
00020-000 -Corttfoa-Pfl 
Ttoafans |$5-41)322-1212- Hamal 541 
Tatatex (55-41)331-32® 
or 

EacAdrto COPB. /Sio Paulo 
Atattoda Santoa, 1A00- 14” andw-con}. 146 
0141S400- S«o PmSo-SP 
TeWoo0(5S-1 1) 289-1431 


M tha time ol BU Docunart* punhsse. d ccmpartes Wa» pmsartl a Mtot 
eonteining Mr compute nuffing address. 

Tbe receipt olProqu sSlc^ on and BWDocunartts te schaduled lor 
No wm b sr e. 1994, aiaoo PM. at COFEL'a office m oo t in g room, in 
CnHba. 233 VoluniMoa da Pteia suow. 5 to floor. 

Thi ffiddng wi be ntedby. Law rp a 666, dated June 21, 1993; wllh 
altetWtara Introduced by Lawn 1 8^83, dated Jum 8 , 1994 and by offier 
c ornfoonaatetod bemin and in Jhe Contract Documenlx 

ginoazzounineto 

MratorAdmlnta ra tfwo 
no Eawcfcio da PmUttncia 


GOVERNO DO ESTADO DO PARANA 


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FINANCIAL. TIMES THURSDAY SEPTEMBER 15 1^94 


TECHNOLOGY 


Bronwen Maddox reports on the 
difficulties with demographic data 


T he Swiss are not known for 
wild leaps into the fron- 
tiers of technology, so it 
came as a surprise last 
year when the federal government 
and SO Swiss companies put up 
SFrl4m (£6 5m) to finance a feasibil- 
ity study for an underground 
high-speed magnetic levitation 
(maglev) train system. 

Called Swissmetro, the project, 
initially proposed in the 1970s by a 
Lausanne engineer, proposes the 
construction of 315km of dual tun- 
nels from Geneva to St Gallen and 
from Basle to BelUnzona. 

The atmospheric pressure in the 
Sm-diameter tunnels would be sub- 
stantially lowered so that air resis- 
tance to the trains' movement 
would be reduced. The trains' 200m- 
long vehicles would then have to be 
pressurised - they are like "aero- 
planes without wings and tails" 
according to one engineer - to sup- 
port human life. 

Theoretically, the maglev trains, 
driven by linear motors, could 
reach speeds of BOOkmh, although 
the planners foresee a constant 
speed of about 380kmh. At that 
speed, the trip from Geneva to Zur- 
ich could be reduced to 57 minutes, 
compared with the current three- 
hour train Journey. 

This sounds appealing, not least 
because the entire Infrastructure 
would be “several tens of metres" 
underground, minimising environ- 
mental impacts. Swissmetro back- 
ers knew there would be no chance 
of winning approval for additional 
surface infrastructure on Switzer- 
land's densely populated northern 
plateau. 

By having the trains run .within 
tunnels in a partial vacuum, Swiss- 
metro would substantially avoid the 
problems of air resistance that 
bedevil all very high-speed trans- 
port In Switzerland, these problems 
would be magnified because of the 
need to have frequent tunnels due 
to the mountainous terrain. 

The project plan calls for reduc- 
ing air pressure in the tunnels to 
between 1 per cent and 10 per cent 
of normal atmospheric pressure, the 
equivalent of the atmosphere at 
between 20.000m and 40,000m above 
the earth. The consequent reduction 
in resistance is also expected to 
bring significant energy savings. 

The plan proposes twin tunnels, 
not only to eliminate the risk of 
head-on. collisions, bid also to avoid 
the air pressure effects - pressure 
change and vibration - when trains 
pass each other in a tunneL Maglev 
trains hover only 20mm above the 
track, so even minor jolting could 
cause problems. 

Maglev technology is fairly well 
established, with Germany and 
Japan the most active developers. 
In March, the German government 
approved construction of the 
world's first commercial maglev 


A question of 
numbers 


I f anyone at the Cairo 

conference on population and 
development needed to be 
reminded that the world’s 
population is growing, a "clock" 
in the centre of the exhibition 
hall kept ticking, registering 
more than one birth every second. 

Projections by the United 
Nations - that the total win 
nearly doable from 5-7bn to 10 bn 
by the middle of the next century 
- were the only part of the 
conference test which was not 
debated, as 180 countries wrestled 
to agree on family planning 
policy. Yet how reliable are the 
projections? 

It is not just UN initiatives 
which depend on the figures’ 
accuracy. The International 
Development Association, an arm 
of the World Bank, employs 
economic criteria such as per 
capita income when deciding 
whether to grant a country 
concessional loans. 

Joseph Chamie, director of the 
UN's population division, adds 
that many businesses are affected 
by demographic trends. "If I were 
a car manufacturer Fd be busy 

now designing cars so that older 
people could get into them.” he 
says, referring to the ageing 
populations of industrialised 
countries. 

But demographers face 
formidable obstacles in gathering 
accurate data on population size. 
Governments sometimes distort 
figures to influence elections, 
they say. 

Some countries in the Middle 
East have not always counted 
births and deaths among their 
immigrant worker populations. In 
some societies "people don’t know 
how old they are”, says Tom 
Merrick, senior population 
adviser for the World Bank, 
which runs separate models from 
those of the UN. In some regions, 
age distribution date can be 
distorted because girls are 
categorised according to whether 
or not they have reached puberty. 

However, both Merrick and 
Chamie argue that the quality of 
the raw date on current 
population size has greatly 
improved in recent years. 
According to Merrick, the 
estimate of 5.7bn is accurate “to 


within tens of millions". Fast 
census date from some African 
countries, in {articular Nigeria, 
have been unreliable, he says, 
although Nigeria's 1991 census, 
which yielded a lower total than 
expected, is now regarded hr 
demographers as sound. 

Countries with large 
populations such as China and 
India have "pretty good” 
censuses, says Merrick. 

Because the date are improving, 
demographers have found the 
predictive power of demographic 
models to be good so far. In 1950 
the UN estimated that the world’s 
population would be &3bn in 
2000; its latest figures suggest 
around Shu. But all acknowledge 
the difficulties in predicting the 
future. The models are sensitive 
to assumptions about whether 
famil y sizes will continue to fall 
as they have been doing in most 
countries for the last 15 years. 

The UN projections for 2050 range 
from 7JBbn to 12 .5 bn on only tiny 
variations in those assumptions. 

H o wever, delegates at the 
conference, which ended this 
week, advanced many competing 
theories about why parents 
choose to have smaller families. 
Twenty years ago, the slogan 
“development is the best 
contraception” was the favourite 
theory, but at Cairo 
demographers emphasised ease of 
access to contraception or better 
education for women. 

Moreover, the models cannot 
take account of future 
development of new contraceptive 
techniques. According to Chamie, 
"the Pill made a tremendous 
difference on futility, as did die 
intra-uterine device and injectible 
contraceptives. They separate the 
act of sex from the decision to use 
a contraceptive, unlike condoms 
for example". 

Demographers' models have 
spelled out to governments that 
they have reason to worry about 
population growth, and to move 
fast on improving family 
planning services. 

The best tribute to the 
demographers’ efforts will be if 
governments act so quickly that 
predictions of the world's 
population in the next century 
prove too high. 


SwHzertaricTs high-speed route 


Proposed ran tunnels 


To Paris ■ To Frsnkfurt GERMANY 

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ITALY 


To MBan 


Treating 
pills like 
plastic 


Magnetic 


attraction 


Swiss plans for an underground rail system will take 
engineers into unexplored territory, writes Ian Rodger 


train to run from Berlin to Ham- 
burg in less than one hour. The 
project will cost an estimated 

DM&9bn (£3-67bn). 

In Japan, a Japan Railways exper- 
imental maglev train achieved a 
speed of 423kmh on a test track in 
February, although plans for a pro- 
totype line near Tokyo have been 
delayed by difficulties in obtaining 


How much vibration will there be? 
• Air-tightness of a very large tun- 
nel structure- What materials need 
to be used to ensure that a partial 
vacuum can be maintained? Swiss 
scientists say it could be achieved 
with a steel tube, but at a very high 
price. They are working on solu- 
tions using concrete with various 
chemical coatings. 


The plan proposes twin tunnels, not only to 
eliminate die risk of head-on collision, but 
also to avoid the air pressure effects when 
tr ains pass each other in a tunnel 


land. 

All projects and experiments so 
ter have been aimed at developing 
above-ground, open-air systems. 
The Swiss project, by going com- 
pletely underground, moves into 
unexplored territory and raises 
questions in at least three impor- 
tant areas: 

• Aerodynamic behaviour at high 
speed in a t unne l. How much free 
space must there be between the 
train and the walls of the tunnel? 


• What are the thermal effects 
caused by the activity within the 
tunnel? 

Yves Trottet, coordinator of the 
project at the Federal Institute of 
Technology in Lausanne, says there 
are no answers to these questions at 
the moment. No one has ever 
attempted a project of this scale 
with these characteristics. 

All these elements also have 
implications for operational safety, 
including, for example, how to deal 


with a loss of pressurisation in the 
train and how to evacuate a train in 
an emergency. The present thinking 
is that a train must be able to 
advance to the next station under 
its own power if necessary. 

As pari of the feasibility process, 
the scientists in Lausanne and a 
sister institute in Zurich, together 
with the relevant Swiss industrial 
companies, will be studying these 
issues as well as those related to 
maglev over the next three years. 

Trottet says computer simula- 
tions can provide some answers, 
but physical testing will also be 
necessary. Later this year, the Lau- 
sanne institute intends to build a 
scale model tunnel for tests. It will 
probably be 300m in length with a 
25cm diameter. 

The economics of the Swissmetro 
project are contentious. The prelim- 
inary study published last year esti- 
mated that the Geneva-St Gallen 
line would cost SFrl3.Ibn and take 
eight years to build. Feasibility 
claims were based in part on 
assumptions of large numbers of 
people abandoning conventional 
trains and their cars in favour of 
Swissmetro. 


G erman chemicals group 
BASF is using its plastics 
manufacturing 

technologies to Improve the way 
its pharmaceuticals subsidiary 
makes medicines. The company 
says the change saves time, 
materials and floor space to the 
tune of more than saoom (£l2Sm) 
a year, the equivalent to having 
developed a successful new drug. 

It should also improve the 
effectiveness of the drugs, says 
BASF, by better controlling the 
way the active ingredients leave 
the tablet and enter the 
bloodstream. 

Traditionally, pills are made in 
several stages, the active 
ingredients being made 
successively into granules, 
pellets and shaped tablets. 

BASF replaces that sequence 
with a single process in which 
the active ingredients are melted 
and extruded as a pliable strand, 
passed through rollers and 
chopped into tablets. The 
problem is that drugs are 
usually crystalline powders, 
lacking the elasticity of plastics. 

BASF's answer was to find a 
polymer that dissolves the 
powder when melted. As the 
polymer hardens the powder 
remains in what BASF calls a 
“solid solution" and can be 
manipulated like a plastic. 

By reducing three processes to 
one, BASF's new pill-making 
method cuts the floor space 
required for manufacturing by- 
three quarters. And by 
dissolving the powder into the 
pill material, the company 
reduces the need to deal with the 
potentially polluting solvents 
that are used in the traditional 
three-stage process. 

Finally, the medication can be 
improved because the polymer is 
designed to release the medicine 
slowly into the body. This 
controlled-release mechumsm 
allows for higher doses to be 
administered and means patients 
need take tablets less often. 

BASF believes that the process 
will bring it contract 
manufacturing business. The 
first extruded medicines should 
reach the market within two or 
three years. 


Daniel Green 



We know that today’s baby talk will turn INTO TOMORROW’S 


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SO, TOGETHER, LET’S CARE. 









11 


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FINANCIAL TIMES THURSDAY SEPTEMBER 15 1994 


• 5 F i' 


Cinema/ Stephen Amfdon 


1 f 

Pills •> 

pla S | Hard and soft on drugs 

Ci 


ARTS 




•- !v 


C lear and Present Danger is 
Hollywood's third attempt 
to translate Tam Clancy's 
capacious, flag-waving 
novels to the screen. It is by far the 
best. Leaner than The Bunt for Red 
October and less ludicrous ft*" 
Patriot Games, Phillip Noyce's 
lively adaptation is pore popular 
entertainment - unabashedly 
corny, expertly paced and thor- 
oughly watchable. 

This time around, true blue CIA 
agent Jack Ryan (the a g p fox Har- 
rison Ford) finds himself c ombating 
Colombian drug lords after they kill 
a dose friend of the US president 
Needless to say, he soon find s him- 
self in the thick of a tatigfod plot 
involving laundered money, covert 
operations and governmental cor- 
ruption. After a series of hloodbatha 
and double crosses, Ryan is put to 
the most critical test of an for a 
true patriot - he is asked by bis 
commander-in-chief to tell a he. 

Director Noyce makes none of the 
mistakes in peeing and credibility 
that marred bis Patriot Games, con- 
cocting instead a film whose strong 
suit is its simplicity. There are no 
grey areas here - cue is either dedi- 
cated to stamping out the tfrug-deal- 
ing vermin from south of the bor- 
der, or one winds up in bed with 
them. Aided by an exceptionally 
lucid script (partially written by the 
legendary John MlHusX Noyce is 
able to create a number of engross- 
ing set pieces, most memorably a 
shootout on a narrow Bogota street 
that should become a standard of 
the genre. There are also two nifty 
sequences in which US government 
g gpnts and drugs cartel gangsters ; 
are shown to be using the exact 
same comp ut er technology as they 
do combat. 

Ford is his nanai stolid man- 
aging to keep his dignity while 
nH w ing tinug that Qeorge Washing- 
ton might have Mawriiad at Wiliam 
P a f pp meanwhile, is just the imm 
to play a cynical CIA operative, 
while Donald Moffat ]s a spineless 
president for our time. Evan *"im 
Archer, in the mo nmDant any tfaank- 
less royal of Ryan's long-suffering 
surgeon wife, fares better than 
before. 


H the film has a flaw, it is its 
refusal to question Clancy’s boyish 
admiration for the capabilities of 
the American milit ary. As much as 
one wishes that we really did Hve in 
a world where the US army could 
conduct operations against drug- 
pushing bad gays that did not 
result in spectacular air crashes, 
dvfflan atrocities and friendly fee 
casualties, it is hard to square Clan- 
cy’s worldview with that offered on 

the nightly news. 

While Noyce’s film relies on an 
unwavering view of narcotics as the 

CLEAR AND PRESENT ” 

DANGER (12) . 

PtriTHp Noyce 

DAZED AND CONFUSED 
08) 

Richard Lmklater 

SMOKING/NO SMOKING 
(PG) 

Alain Resnais 

PEEPING TOM (18) 

Michael Powell 

devil’s own candy for its plot 
dynamics, Richard TJnVister ped- 
dles a fa* wpfte r itee in Us delight- 
ful Dazed and Confused. Set an the 
last day of high school in a subur- 
ban Texas town in 1976, linklater’s 
second feature virtually floats on a 
doud of martfnana smoke. Needy 
every o ne except the local cops and 
the fitsdstic football coach can be 
seen taking on reefer or bang at 
some point 

As with his memorable debut 
Slacker, Ttekfoter largely fosegoas 
plot, focusing an the development of 
character atmosphere through 
a steady accretion of humorous and 
spot-on detail The film bears a cer- 
tain resemblance to A m eric an Grof- 
itd in this regard, with its parade of 
souped-up cars, not-so-naive girls, 
hormonally charged boys and a nos- 
talgic soundtrack. But where 
George Lucas’s film peddled a myth 
of American youth as a bunch of 
basically wholesome kids out for 


same ktefat, Linklater’s gobgeqnent 
ffl w mitkm am -th n rwmgfily alienate d 

from their society. His accomplish- 
mentis to avoid pathos or goom in 
portraying them, opting instead for 

an Trnini m r that actoaOy 

makes one ph* for tiiose teenage 
day s of pim ply angst and.pubescent 
insecurity. 

* 

The combination of French New. 

Wave director and a Sc ar b orou gh 
playwright who specialises in very 
British. nnmedigg of i w m^w^ plight: 
seem an coupling, though Alain 

Resnais and Alan Ayckbourn have 
more in cnmnwn t h orn just a Chris- 
tian name. Both have shown a 
marked tendency to juggle and 
bend the flow of time in their work, 
Resnais through mind-boggling 
fflwm ffira Last Year at Marienbad, 
Ayckbourn with ennniu it mii plays 
such as How 0te Other Half Uses. It 
is hardly m i r pr i iring , than, that the 
value of their first collaboration 
should be p i- fawn y as an 
in style, fascinating in its technical 
details but sorely laefcteg as a 
bimam drama. SmoktnglNo Smo*> 
inff, which can either be consumed 
as two long films or one very long 
epic, is surety the only movie to 
appear this year whose press 
release contains a flow chart to aid 
viewing. 

Based upon Ayckbourn's play 
cyde Intimate Exchanges , the film 
is set the small Yorkshire town of 
Button BusceL Its central charac- 
ters are a drunken KMriwmndwr at 
the local school, Ms lonely wife, his 
best friend, Ms cut a wa y spouse, a 
gardener and a housekeeper. The 
action involves various dalliances 

and f flnpTing w among ttwmi aardi of 

which blossoms Into a series of per- 
mutations when time is reversed 
and characters are allowed to 
remake key choices. Hence the 
Unary title, which aihidaa to the 
first key decision: the headmis- 
tresses^ wife initially indulges her 
desire for a cigarette and then 
decides not to have one, thereby 
Hu g in mnHm two entirely dif- 
ferent during of eve nt s. 

What is notable about the film is 
its labyrinthian overall structure, 
which ahonlri keep chess entbnsi- 



Unabashedty corny and thoroughly watchable: Harrison Ford in *Clear and Present Danger* 


asts «nd whh» wanderers enthralled 
for the nearly five hours of viewing. 
Sabine Azenxa and Pierre AritttL, 
who between them play all the 
roles, are at times inspired and 
always resourceful. But the film 
suffers from its overall length and 
its meagre, stage-bound look. And 
Resnais never really answers the 
key question that arises after a few 
hours of viewing - so what? A pall 
of randomness hangs over the 
whole enterprise. The resulting mal- 
aise makes SmokmgjNo Smoking a 
tot of a drag. 

★ 

Attending thin week’s London press 
showing of the reissue of Michael 
Powell's Peeping Tom is like revisit- 
ing the scene of a lynching carried 
out by him ancestors. It has been 
34 years since British critics gave 
the film such a mgrrnessly hysteri- 
cal drubbing that its maker, doubt- 
lessly one of the greats of our 


national cinema, never really 
worked on these shores shw» 
fhon i with the flUQOUS i nto n w iten 
of Martin Scorsese, who rescued the 
print from destruction, this disturb- 
ing story about a young murderer 
who photographs his victims at the 
moment of their death has gone on 
to be recognised as the masterpiece 
it always was. 

★ 

Meanwhile, the 51st Venice Film 
Festival went out to the sound of 
frantic stitchings compromis- 
ings in the jury room, writes Nigel 
Andrews- The Golden Lion was 
shared between two films neither of 
which was expec te d to win - Micbo 
Malchevski’s Before The Ram from 

Mnwrimifa and Tsai Ming-Liang’s 
Long Hoe Love from Taiwan - but 
uririiSh spaned anrifanrp teate from 
the panoramic-political (Malchev- 
ski’s study of war's reverberations 
across a nontingnt) to the tatfmfafc. 


m|wr lm<w t al 

Tsai's film, reported an by me last 
week, is by far the superior work: a 
near-abstract chamber drama of 
crisscrossing lives with a dazzlingiy 
fresh - and funny - approach to 
narrative. Oliver Stone's k&leido- 
seopic Natural Bom SSRers was also 
rewarded for stylistic originality, 
winning the Special Jury Prize. 

The lower reaches of the trophy 
list woe rhanHr, if not sometimes 
incomprehensible. Three Silver 
Lions were shared out between two 
indifferent flhui — Italy’s U Toro 
(The Bull) and America's Little 
Odessa - and a one-time favourite 
for gold. New Zealand's Heavenly 
Creatures. Four acting awards went 
to performers that few of us had 
shortlisted, mrinding Vanessa Red- 
grave’s bltok-and-youmiss-it role as 
a dying Russian- American immi- 
grant in Utde Odessa. And two film- 
makers felt to have been in with a 


shot at the top prize ware fobbed off 
with Best Director (Italy’s Gianni 
Amelio for Lamerica) and Best 
Screenplay (Spain’s Bigas Luna for 
The Tit And The Moon). 

The festival itself was as confus- 
ing as the prizes. It began badly, 
rallied for a week of high quality, 
then collapsed again. We know that 
Venice has money problems, but 
money alone does not explain a 
European film spree that is so 
inconsistent in its choice of compe- 
tition movies (high-budget, tow-bud- 
get; experimental, conventional); 
nnri that pm summon and accom- 
modate more Hollywood stars than 
you will ever find in the average 
Cannes festival - this year Harrison 
Ford, Jack Nicholson, Michael 
Douglas, A1 Pacino, Arnold 
Schwarzenegger... - while behav- 
ing Him the poor man of Euro-dn- 
wna to all its other guests and par- 
ticipants. 


Theatre/Martin Hoyle 


?l-.r . 


A leaky ‘Moby Dick’ 


J ohn Huston did it on film 
with Gregory Peck, Orson 
Welles on stage with Joan 
Plowright, and Manches- 
ter achieved a notably 
Wubbery coup de thKttre with 
it Cameron Mackintosh came 
a cropper when he tried it in a 
girls’ school Now Gerry Mul- 
grew has directed Hermann 
MeMUe’s haunting novella of 
obsession and destiny, Moby 
Dick, with the Royal Shake- 
speare Company. 

The production was reviewed 
in Stratford last November. 
Rumour has it that fine-tuning, 
tweaking and general tinker- 
ing has taken place for its 
transfer to the Barbican’s Pit; 
perhaps too much since the 
piece stolidly refuses to gener- 
ate much theatrical tmainn. 

Mnlgrew was responsible for 
two of the liveliest offerings I 
have seen in Scotland: Mary 
Queen of Scots Had Her Head 
dropped Off and the wonderful 
phan tasma goria of Scottish 
identity real and imagined, 
Jock Toalson's Bairns. As with 
many of his compatriots, the 
journey south has tamed him. 

As a director he may be 
uncertain how to take Rod 
Wooden’s adaptation. The writ- 
ing sets off resonances, echoes 
and flUnsiong - unwisely, since 


it foils to stand the comparison 
with tiie sort of poetic jsosody 
It anmatnnflg arms at Chief Suf- 
ferer is David Calder who 
brings a Shakespearian tech- 
nique to soma 6nb-ShakBspear- 
ian fustian interspersed with 
creaky metaphors - “I didn’t 
stop to plug my leak” - that 
frequently said the dramatic 
craft dipping into the brackish 
surge of bathos. The style 
varies between the dotted 
poesy at fine writing and delib- 
erate modernity. As the crew 
remarks in true 19th-century 
fashion, "It gives me the 
creeps”. As with the fountain 
pen with which our storyteller 
(whose famous opening, “Call 
me IshmaeT, Is moved bad) 
■sig iM an, the effect is less uni- 
versal than merely distracting. 
The story may be timeless, but 
this implies freedom from such 
specific details, not a constrict- 
ing ampharis on them. 

Writing and direction are at 
their most ambitious in the 
choral spoken passages that go 

an too long, just as the boy Pip 
(played with passionate relish 
by Lloyd Notice) has at least 
cmt> Ophelia-like mad scene too 
much. Karen Tencent's design 
dangles ropes from above 
around which the cast dusters 
in sculptural groups. This 


mffninu g M ftp cult of tiie pic- 
turesque, notably in the case cf 
Christopher Colqhotm’B Afri- 
can-toned ' Queequeg, a 
designer savage given to pos- 
ing as if displaying tiie la tes t 
gay leisure wear. The sacrifice 
of coh erence to imagery is seen 
during a storm, where two fig- 
ures are pulling on one rope — 
in different directions. 

The final use of a billowing 
white shed to cover tiie stage 
is impressive though, in the 
words of Porgy and Bess, It 
takes a tong haul to get there. 
Calder’s Captain Ahab, a few 
weevils short of a ship's bis- 
cuit, is powerful enough in a 
yohoho sort of way to make 
one want to see his Long John 
Silver; a character a greet deal 
more varied and com plex than 
the stumping ranter at the cen- 
tre of this production. Mel- 
ville's damy i od wrigtenttaftgra 
has leaked, unplugged, away 
cm the voyage from the Avon 
to the Thames. As the Scottish 
crew member remarks, “So 
many nice intelligent people 
doing nice inteMgent things. 
Look what a mess ifs got the 
world into!” Oh come on, 
chaps: this is the man who 
wrote BOlyBudd. 

In reper to ry at the Pit 



The Tempest in Birmingham 


David Calder and Christopher Hunter in Ttfoby Dick’ 


I s Birmingham our most 
colourhfind and/or multi- 
cuttnral city? No British 
ballet company makes 
more of the differing ethnic 
origins of its Ameers than the 
Rfrmtngham Royal Ballet; and 
now Bill Alexander, artistic 
director of the Birmingham 
Rep, is presenting a new pro- 
duction of The Tempest in 
which Prosper), his daughter 
Miranda, his brother Antonio, 
and his spirit Ariel are all 
played by black actors, and in 
which two magical masque 
sequences are performed by 
Indian dancers in Indian style. 
So for so pc; but colourblind 
casting is also, in this case, 
poetry-deal 

For Alexander and Jeffery 
Kissoon, who plays Prosper© 
here, this Tempest is a sequel 
to last year’s Othello, with 
which Alexander launched his 
new regime at the Rep and in 
which Kissoon played the title 
role. He is a much younger and 
more potent Proepero than we 
usually see; fine. But in all five 
Shakespearian roles 1 have 
seen him play he has employed 
the same barking delivery, the 
same avoidance of all legato 
connectiveness, the same false 
stresses, the same blnrrings of 
syllables, the same sudden 
shouts. I find this casting 
insufferable. 

There is novelty and some 


freshness in Rakie Ayola's 
childish, piping, blinking, 
seemingly up*d Arid, and to. 
(Rony Holder’s quiet taut eager 
Miranda; but neither speaks 
with any distinction. The best 
black verse-speaker in the cast, 
however, is Tony Anna trading 
as Antonio*, he brings a nice 
canning to tiie role. likewise, 
there is novelty and freshness 
in Piali Ray’s use of Bharata 
Natyam style far the spirits’ 
dances; but there is little real 
pleasure to be bad from watch- 
ing any Indian dance either on 
a sandy floor or to taped, and 
partly rock-based music (by 
Jonathan Goldstein). 

All this mars what might 
otherwise be a first-rate pro- 
duction. in all larger matters, 
Alexander shows how well he 
understands this play. The ini- 
tial tempest - an eerie quiet, 
marked by the huge slow thud- 
ding of a heartbeat and an 
occasional giant thunderclap 
and the noise of a colossal tidal 
wave or two - is thrilling. 
Ruari Murchison’s sing l e set Is 
marvellous, one vast circle of 
sky at the bade and another 
vast circle of white sand in the 
centre, the rest being com- 
posed of black rode In which 
we see some of Prospero’s 
books sculpted. Costumes are 
Victorian; there is a feeling of 
a 19th-century Robinson Crusoe 
to it all that adds poetry and 


excitement. Alexander imposes 
no specious concepts onto the 
play, no cere br al ornamen- 
tation; even Ariel’s magical 
appearances are simply 
achieved. I would say that this 
was a Tempest shaped by a 
deep and loving knowledge of 
the text - were it not that the 
above-mentioned members of 
the cast too frequently stop me 
from hearing the test 

It is a bore to have to say 
that the white comic actors 
make the most successful 
impression, but it is so. Geoff- 
rey Freshwater as Trinculo 
and Andy Hockley as Stepbano 
take complete charge of the 
play on their every appear- 
ance. I do not care for the 
stunted way in which Andy 
Hockley speaks Caliban's 
words, (proceeding from his 
line to Prospero “You taught 
me language”), but be nonethe- 
less gives Caliban a crude rage 
that i$ at once funny and dis- 
turbing. This Tempest is an the 
verge erf being vivid, refresh- 
ing, and spontaneous. But that 
phrase “You taught me lan- 
guage” reminds me that Alex- 
ander knows more about the 
secrets of Shakespearian lan- 
guage than he is teaching his 
actors. 

Alastair Macaulay 

Birmingham Rep until Oct 8. 



■ ATHENS 

Odaon of Herodes Atticus Tonight 
Hans Graf conducts Salzburg 
Mozarteum Orchestra in Mozart, 
with piano soloist Danae Kara. 
Tomorrow. Daphne Evangetetos and 
Gffles CaehemaUI® are soloists in a 
Cal las memorial concert Sep 22, 

24: Verdi's Oteflo (01-322 1459) 
Megaton Sun, Mon: Carlo Maria 
QuflnJ conducts Orchestra of La 
Scala MBan in works by Debussy, 
Firanck and Ravel (01-728 233# 
01-7225511) 


fc- 


■ BOLOGNA 

Teatro C o mm u nale The autumn 
concert season begins on Sep 23 
and 24 with an orchestral 
prog ramm e conducted by Jin Kout 
featuring violin soloist Viktor 
Trebakov (051-529999) 

■ FLORENCE 

Teatro Communafe Zubin Mehta 
conducts five performances o< 
Jonathan Miller's production of Cos 
fen tutta. opening on Sep 24 with a 


cast inducing Karita Mattfla, Delores 
ZtegtorandDeonvanderWSft.il 
flosofo df campagna, a drarama 
glocoso by ISth-contury composer 
Baldassare Gahippi, will receive four 
performances at the Piccolo Teatro, 
starting Sep 28 (055-211150) 

■ GENOA 

Teatro Carlo FeBce The Odessa 
Opera gives fou- guest 
performances of TchaBravsky's The 
Maid of Orleans, starting next Thurs 
(010-589329) . 

■ MADRID 

Teatro LHco La Zarzuela The 
autumn dance season begins next 
Thure with the first of 10 
performances by the Spanish 
National Ballet (frl -429 8225) 

■ LONDON 

THEATRE 

• The Hostage: the Royal 
Shakespeare Company has just 
unveffed its new production of 
Brendan Behan’s great Irish drama, 
directed by Michael Bogdahov. ft 
continues to repertory with The 
Tempest, starring Alec McCowen 
and Simon Russell Beate (Barttcan 
071-438 8891)’ 

• The Devttfe Disciple: Christopher 
Morahan directs the National 
Theatre’s new production of Bernard 
Shaw’s 1897 satire oniratodrama, 
in repertory at the Olivier with David 

Hare's Racing Demons and 
Chekhov’s The Seagull (National 
071-928 2252) . „ 

• The Playboy . of the Western 
World: Lynne Parker directs a 
welcome new staging of J.M. 


Synge's celebrated play about 
Christy Mahon, the lying Irish 
playboy. TO Oct 15 (Almeida 
071-3594404) 

• D e sign for Living: Sean Mathias, 
one of the UK’s leading young 
directors, takes a fresh took at Noel 
Coward’s m enage A trots who reject 
conventional values (Donmar 
Warehouse 071-369 1732) 

• Ba bies: Jonathan Harvey’s play 
ttBs the story of Tammy's 14th 

. birthday party, which mum has 
thrown to order to ensnare her 
daughter’s teacher - without 
realising Unde Kenny has the same 
teste (Royal Court 071-730 1745) 

• The Window Boy: another step 
to the Terence Rattigari revival - this 
time, Ms 1948 ptay about the private 
cost of justice. Peter Barkworth Is 
ideally cast as the stiff upper-Uppod 
father, battling Whitehall to prove 
the innocence of his son who has 
been axpeSedfrom naval coflege 
(Globe 071-494 5065) . 

• Dead Fumy: Terry Johnson’s 
brtHant, eiegartty-actedcomedy 

abo ut m a r riage among the 

emotional/ retarded middte classes 
(VaudevSe 071-838 9987) 

• The Cryptogam: Lindsay 
Duncan and Eddie tzzart star in 
David Mamefs tantaMajng new play 

about betrayal (Ambassadors. 
071-8361171) 

• She Loves Me: the charmihg 
1963 Masteroff, Bock arid ftetnick 
romantic musical about two penpals 
who don’t know they work to the 
same parftanerie. ftjtttie HenshaB 
and John Gordon Stoddr heed the 
cast (Savoy 071-836 8888) 
OPERA/DANCE 

Cofisstsn Engish National Opera 
has opened the 1904-95 season 
with a new production of Toeca, 


conducted by Alexander Gibson and 
staged by Keith Warner, with a cast 
headed by Rosalind Plowright, David 
RendaU ancfHenk Smtt (next 
performances Sat and next Tubs, . 
runs tffl Oct 27). Jonathan Miller’s 
production of The Mikado is revived 
on Sep 21 (071-836 3161) 

Covent Garden The Royal Opera 
has opened its season with a revival 
of Andrei Serban’s production of 
Turandot, starring Sharon Sweet and 
Giuseppe Giacomlnl (next 
performances tomorrow and Mon). 
La Cenerentola is revived on Sep 
26, and the first new productions of 
the season are Das Rheingotd and 
Die WalkQra on Oct 13 and 14. The 
Royal Baflet returns on Nov 3 with 
Anttiony DoweJTs new production of 
Steeping Beauty (new box office 
number 071-304 4000) 

Sadler's Weis British Youth Opera 
presents Eugene Onegin tonight and 
Sat; and Rossini’s Thieving Magpie 
tomorrow. Cumbre Hamenca, a 
Spanish flamenco group, opens a 
th ree wook season on Tubs - 

(071 -278 8916) 

CONCBVTS 

South Bank Centre Tonight RPO 
plays symphonic music from 
Mexico. Bat Daniels Gatti conducts 
RPO In Brahms and Prokofiev, with 
vIoHn soloist Shkxno MJntz. Sun: 
Giuseppe Stooped conducts 
Philharmpnia Orchestra in Strauss 
and Mahler, with soprano Edita 
Gruberava. Next Wed: Endaffion 
String Quartet plays Britten, 
Beethoven and Schubert, with 
pianist Jean-Yves Thibaudet 
(071-928 8800) - 
Barbican Sat an evening of 
barbershop. Tues: George Uoyd 
conducts Bournemouth Symphony 
Orchestra in three of his own works. 


Next Wed: first concert to London 
Symphony Orche s t ra 's Mahler 
festival, including world premiere of 
a new work by James MacMIBan 
(071-638 8891) 

Wtgmore Hal Mon: Jennifer 
Larmore song recital. Tubs: Nash 
Ensemble plays new chamber works 
by Henze. Sep 27: June Anderson 
(071-935 2141) 

■ MILAN 

Teatro Mb Scab The Zeffirelli 
production of La boheme Is revived 
on Sat for six perfor ma nces, with 
casts tochxfing MkeOa Freni, 

Roberto Alagna, Nicolai Ghiaurov 
and Gtoo Qulico, conducted by 
Gianandrea Gavazzerf (02-7200 
3744) 

■ PRAGUE 

CONCERTS 

The Prague Symphony Orchestra’s 
1994-95 season begins next Wed 
and Thurs with a Dvof£k and Suk 
programme conducted by Charles 

Mackerras, featuring cello soloist 
Ofra Hamoy. The orchestra is 
sharing the RudoMnum with the 
Czech Philharmonictttis season, 
white its home at the Smetana Hall 
is renovated (02-2489 3111). The 
Czech Philharmonic's first concert is 
on Sep 30, when Gerd Aforecht wffl 
conduct works by f%ich, Uflmssin 
and Brahms (02-2489 3352) 

OPERA 

Don Giovanni can be seen at the 
Estates Theatre on Sep 16, 22, 27 
and 30 (02-2421 5001). This month's 
repertory at the National Theatre 
Includes DvoWk’s Rusal ka and The 
Devil and Kata, Smetana's The 
Bartered Bride and Dafibor, and 


Tcha&ovsky’s Eugene Onegin 
(02-2491 3437). Prague State Opera 
has a popular repertory including 
Carmen, Madama Butterfly and 
Nabucco (02-2421 5031) 

■ TURIN 

Settembre Musics continues with 
tonight’s concert at the 
Conservatorio given by the Dowland 
Consort. The festival also includes a 
Mozart and Bach choral concert at 
San FHippo on Sat afternoon, and a 
concert performance of Gluck's 
Orfso conducted by Richard Hfckox 
at the Teatro Regio next Wed. The 
final performance Is PeUdas at 
MdBsande at the Regio next Thurs 
(011-562 0450) 

■ WARSAW 

The Warsaw Autumn contemporary 
music festival opens tonight and 
continues till Sep 24. Anne Sophie 
Mutter is viofin soloist tomorrow to a 
Lutoslawski programme. Antoni Witt 
conducts Polish Radio Symphony 
Orchestra in Ranufhik’s Stofonla di 
Store on Sun, while Nangforum 
Wien pays tribute on Mon to another 
recently-deceased Polish composer, 
Roman Haubenstock-Ramafi. The 
younger generation of Polish 
conposera can be heard In a 
lunchtime programme on Sat 
entitled Hits from the Sixties to the 
Nineties. Foreign composers 
represented this year include Henri 
Dutifleux, Magnus Lindberg, Bright 
Sheng, Salvatore Scterrino, Elliott 
Carter aid Comefius Carctew 
(Warsaw Autumn, Hotel Europejski, 
Krakowekfe Przedrmesde 13, 
Warsaw. Tel 022-265051 Fax 
022-26111) 


ARTS GUIDE 
Monday: Berlin, New York and 
Paris. 

Tuesday: Austria, Belgium, 
Ne th erlands. Switzerland, Chi- 
cago, Washington. 
Wednesday: France, Ger- 
many, Scandinavia 
Thursday: Italy, Spain, Athena, 
London, Prague. 

Friday: Exhibitions Guide. 

European Cable and 
Satellite Business TV 
(Central European Time) 
MONDAY TO FRIDAY 
NBG/Super Channel: FT Busi- 
ness Today 1330; FT Business 
Tonight 1730. 2230 

MONDAY 

NBC/Super Channel: FT 
Reports 1230. 

TUESDAY 

Euronews: FT Reports 0745, 
1315. 1545. 1815. 2345 

WEDNESDAY 

NBC/Super Channel: FT 
Reports 1230 

FRIDAY 

NBC/Super Channel: FT 
Reports 1230 

Sky News: FT Reports 0230, 
2030 

SUNDAY 

NBC/Super Channel: FT 
Raoorta »an 

Sky News: FT Reports 0430, 
1730; 


■r- 





12 




V 


V 


FINANCIAL TIMES THURSDAY SEPTEMBER 151994 


A man who could 
not care more 



BOOK 

Review 


j Tony Benn has 
been so 
spectacularly 
wrong on so 
many subjects 
over the years 
that it is pleas- 
ant to record 
his achieve- 
ments. By far the greatest is 

that he has written the best 
and probably most accurate, 
British political diaries of our 
time. 

years of Hope is the sixth 
and presumably final volume. 
Subtitled Diaries, Papers and 

Letters 1940-1962, it helps to 
explain a great deal of what 
ramp later, but was published 
earlier. 

"1 am going to try out a polit- 
ical diary," Benn wrote in Jan- 
uary 1951, haying just been 
elected to Parliament as the 
“baby" of the House at the age 
of 25. “What I want to do is to 
highlight the most significant 
events of which I am a witness 
and set down contemporary 
and opinions which 
my memory would probably 
distort to suit current purposes 
were I to try to recall them 
later on." 

The Benn of the 1350s was 
not quite as assiduous in his 
daily jottings as the Benn of 
the '60s, 70s and ’80s. Yet he 
stuck to his basic principle: 
write it down as you see ft and 
hear it at the time, however 
fatuous it may seem after- 
wards. 

A lesser man would have 
eliminated some of the entries 
in Years of Hope. Here, for 
example, is Benn’s comment 
on a party at the American 
embassy in London in April 
1959 at which he admits that 
he and his wife had H a whale of 
a time": “One wondered how a 
society led by these sort of peo- 
ple could possibly withstand 
the thrust and dynamism of 
the Chinese communes work- 
ing away so feverishly and 
seriously on the other side of 
the world." 

Back at the embassy for din- 
ner in December, he recorded: 
This was gracious living at its 
height. 1 cannot but feel that 
western civilisation has 
reached its peak and is now 
slowly declining before the 
upsurge of pressure from the 
more serious societies." 

He thought (January 1960) 
that American culture had 
"detxibalised Britain to some 


YEARS OF HOPE: 
DIARIES, PAPERS 
AND LETTERS 
194 0-1962 
By Tony Benn 
Hutchinson. £25. 442 pages 

extent and we shall be better 
off still when we get the frill 
blast from Russia and China". 

Benn was not alone in his 
delusions. The recorded entry 
for October 21 I960 reads in 
full: "Bang Audrey Callaghan. 
She said Jim was very 
depressed, but had come back 
from Czechoslovakia convinced 
that socialism does work." 

He wrote of Harold Wilson In 
the same yean “My contempt 
for him grew each time I met 
him and I don't think that he 
has one-tenth the character of 
GaitskelL” That was in spite of 
the fact that Beau's opinion of 
Gaitskell, character and other- 
wise. was low, except perhaps 
when Gaits ke II was nice to 

him 

The paradox was that in 
those days Benn seemed a 
rather moderate member of the 
Labour party. Some of his 
friends and contemporaries 
were well to the left of him: for 
instance, Woodrow Wyatt Bob 
Hellish and George Thomas 
(now Lord Tonypandy). Subse- 
quently the others moved to 
the ri ght; Benn is one of the 
few figures in politics to have 
moved steadily leftwards as he 
grew older. 

There is perhaps a partial 
explanation in Years of Hope. 
Benn was very much a child of 
his time. Public school and 
Oxford, he accepted the second 
world war and his doty to vol- 
unteer. He trained as a pilot 
longing to get into battle. He 
used all the boyish RAF lan- 
guage like "wizard" and 
"wizzo”. He chased the most 
obviously attractive girls with- 
out a great deal of success, and 
had to remind hhnsgif to pur- 
sue someone more serious. 
When Noel Coward came to 
visit the base in Rhodesia 
where he was stationed. Benn 
thought the maestro’s best 
line: "Grandpa ate a large 
apple and made a rude noise in 
the Methodist ChapeL” 

His brother Mike was killed 
in action. Politics ran in the 
family. Both bis gr andfather 
and his father were MPs. But 
there came a problem: the 


Father, William Wedgwood 
Benn, was a Labour minister 
who was sent to the House of 
Lords in the days whan peer- 
ages were only hereditary. 

The young Tony (or James 
or Jiggs, as we now know he 
was called in his youth) 
objected from the start, for it 
meant that at some stage he 
would have to take the title 
and be ineligible for the House 
of Commons. In this be had 
something in common with 
Lord Haiiaham, who was also 
from a long-standing political 
family and believed that it 
ought to be possible to 
renounce a peerage in order to 
stay in elective politics. 

As Benn tells here, he began 
working with Hailsham and a 
few other Tories for reform in 
the early 1950s. Some Tories 
opposed it because they did not 
want either Hailsham or Lord 
Home back in the Commons as 
rivals. When the reform was 
finally achieved in 1963, one of 
the prime beneficiaries apart 
from Benn was Home, who 
promptly became prime minis- 
ter. 

Benn and Hailsham had 
other affinities. There is an 
uncanny resemblance in mood 
between these diaries and Hall- 
sham's recent book. Values: 
Collapse and Cure. Both are 
tales of postwar hopes not 
being realised: their restless- 
ness «impi y came out in differ- 
ent ways. It is striking, too, 
that several of Benn's early 
political friends were Tories: 
Sir Edward Boyle especially, 
but also Enoch Powell ("as a 
working-class Tory he has the 
social barrier to overcome") 
and Edward Heath ("a most 
amiable and friendly soul”). 

Benn is sometimes too kind 
to tyrants. He had a love affair 
with the third world, which he 
never wholly understood. But 
on the whole he likes rebels. 
He writes of Violet Bonham 
Carter: "She has a tremendous 
vitality and an unparalleled 
enthusiasm for life. She 
belongs to the ‘couldn't care 
more' brigade." Just like Benn, 
though there is another hero to 
the diaries. That is Ruth Win- 
stone who has edited the lot. 
She says that Years of Hope 
was the most enjoyable task 
of all, and she may be 
right Ms Wmstone deserves a 
medal. 

Malcolm Rutherford 


T he UK chan- 
cellor, Kenneth 
Clarke, would have 
had a whiff of the 
worse than expected UK Retail 
Prices Index and the faster 
than expected drop in unem- 
ployment by the time he 
accepted the Bank of England's 
advice to raise base rates. This 
was last Friday, 48 hours after 
his monthly meeting with the 
governor, Eddie George, at 
which he had asked for a cou- 
ple of days to consider. 

Nevertheless, these two indi- 
cators on their own would not 
have been decisive. The 1X1 per- 
centage point rise in the under- 
lying RPI could well have been 
a blip due to the end of the 
summer sales. Moreover, the 
fall In unemployment is not 
yet being accompanied by a 
rise in the total number of 
jobs, let alone full-time ones. 

The main reasons for the 
base rate move were listed in a 
Treasury statement. Some of 
the elements could have been 
cited a few months ago, such 
as the growth of MO (cadi bal- 
ances) persisting above the 
monitoring range. Other 
trends, such as rising output 
expectations and highs' ster- 
ling commodity prices, and 
more vigorous recovery abroad 
have intensified. 

The two most important ele- 
ments were, however, the 
upward revisions in the GDP 
estimates and detailed analysis 
suggesting rising prices of 
intermediate products. 

Vigilance Is required in 
reacting to the GDP estimates. 
For instance, the haarflina fig. 
ure of 3.7 per cent real growth 
in the year up to the second 
quarter of 1994 includes North 
Sea oQ, which is both highly 
volatile and exerts little direct 
pressure on the UK activity. 
The Treasury invented a mea- 
sure called "non-oil GDP" with 
which it made great play when 
it suited its purpose. This is 
still the most relevant measure 
today. Non-oil GDP has on the 
latest estimate risen by 3 per 
cent which is hardly breath- 
takingly hi gh 

Simply to look at this growth 
rate and contrast it with a 
guesstimate of underlying 
growth of capacity of 2 to 2'A 
per cent per annum is a 
howler. The degree of spare 
capacity and unemployment 
are crucial. A 3 per cent 
growth rate means something 
very different when the coun- 
try is emerging from a severe 
recession from what it does if 
the economy is running along 
its trend line or bumping 
against the limi ts of capacity. 

In feet the best domestic rea- 
son for raising UK short-term 
interest rates was given in a 


V 


Dictation in French. Letter 
in Spanish. At The Regent 
we’ll even take a few notes 
iv hen the occasion demands. 


y 



economic Viewpoint 

Interest cost of 
UK opt-out 

By Samuel Brittan 


1 Hmkhi WiiMnffi i 

f 


AUCKLAND, IIANCKOK. UEVERLY HILLS CEMANG MAI. FIJI. HONG KONG. JAKARTA. 

Kuala lumfur. London. Melbourne. Singapore. Sydney, taipei. 

CON I ACT YOUR TRAVEL COUNSELLOR OR ANY RECENT INTERNATIONAL WORLDWIDE RESERVATIONS CENTRE. 
FOUR SEASONS - REGENT. DEFINING THB ART OF SFRnCE AT 40 HOTELS IN 19 COUNTRIES. 


y 


x 


reader’s letter to the FT fay 
Dr J, Popham (September 13). 
It was simply that the risk in 
raising rates at this stage of 

the cycle, when world output is 

recovering strongly, would be 

mnefr smaller than the risk tn. 
not raising them - which could 
reinforce the sceptical view 
that the UK has not kicked its 
inflationary habits. 

I doubt if the Bank of 
England would quarrel with 
the view of the former chancel- 
lor, Norman Lamont, that 
short-term UK interest rates 
are likely to rise to 7 per cent. 
The governor's speeches, while 
avoiding crystal ga*mg , have 
assume d that UK short-term 
rates have been abnormally 
low in the aftermath of reces- 
sion, and that normal growth 
would require something 
higher. If the appropriate real 
rate of interest is about 4 per 
cent, then 2 Vi percentage 
points have to be added for 
inflation, even on an optimistic 
estimate, and perhaps % per 
cent as a risk p r mr ftT m. 

These considerations apply 
to other European countries 
where short-term Interest rates 
have not yet risen, hi the main 
this is because recovery has 
come later on the Continent 
But there are other riifTgwmrps 
which are revealed by looking 
at long-term rather than 
short-term rates. 

S faip p the hagmning of the 
year, average bond yields have 
risen in the Group of Seven 
countries by nearly 2 percent 
age points. The rise in yields 
on UK indexed gflts would sug- 
gest that about l percentage 
point of this increase repre- 
sents higher real interest rates 
am! the rest a deterioration in 
infiationary expectations. 

The European Monetary 
Institute has apparently car- 
ried out a study of the behav- 
iour of band rates. It did not 
explain the worldwide rise, but 
fell back on the next best 
thing, which was to investigate 
the differential increases from 
one country to another. 

The charts are a rough 
attempt to replicate it They 
show that Japan has both the 


General rise in long-term rates 

10 y/rntx bond yiafcte (%} / ■ A :\f • / 


13 




? «. ■ jg, 

UK Ka)y Canada 

■ ’ rv ' 

3" — 




Sap 


Aft 




IKK 


UK staffing trade wrightad index. 1985-100 


Sap 



SOUMK PfalHMlI 

lowest level of bond yields and 
has experienced the smallest 
increase in them - by a very 
wide margin (Tn August, the 
Japanese yearly inflation rate 
became for the first time nega- 
tive at minus 0.2 per cent) The 
US and Ge rmany duster close 
together with bond yields of 
about 7% per cent, although 
Germany has a slightly fester 
rise of nearly 2 percentage 
points. Only slightly behind 
comes France. 

The UK on the other hand 
heads the also-rans. Before the 
base rate rise, it had experi- 
enced both a larger increase in 
bond yields than the countries 
so far mentioned and had seen 
them rise to a higher leveL 
Ten-year bonds rose in the UK 
in 1994 by some 2.7 percentage 


prrinfrg The yield was S tanding 

before the base rate rise at 8 l8 

per «»i|t - a hi gher level than 
in these other countries. The 
only G7 country it clearly beat 
was Italy, whose well-known 
problems have been reflected 
in band yields of well over 12 
pm- cent 

It is anyone's guess why the 
UK, which has achieved a 
near-record underlying infla- 
tion low (superior to any other 
G7 country except Japan and 
France), has not done better in 
the bond stakes. Sterling has 
been weak against the D-Mark 
and European currencies, but 
strong against *hp dollar. Its 
trade-weighted index has been 
above the low point reached 
after the forced withdrawal 
from the ERM, but it has been 


sagging for most of this year- It 
vSfodeed M elem^ tjn ^ 
government's base rate deci- 
sion. The hope was that a ster- 
ling crisis would be pre-empted * 
well before the markets started * 
curing about one. Obviously 
the chancellor plays down tins 
element in view of the peculiar 
emotions which any idea of 
looking at the sterling rate 
arouses in some Tory Mrs. 

The Treasury and Bank 
r\nh n that what market devel- 
opments mainly show is tflfi 
need to reinforce the credibil- 
ity of the new anti-inflationary 
machinery in Britain, the high 
point of which is the regular 
monthly meeting between the 
chancellor and governor. They 
hope that such confidence wdl 
be reinforced by a pre-emptive 
strike such as this week's base 
rate move. 

B ut 1 fear that there 
may be more to it 
than that. Another 
development is that 
European monetary union has 
recovered some credibility, as 
the European economy has 
recovered and hard core coun- 
tries have remained within 
hailing distance of their bid 
ERM parities. But the idea has 
also become entrenched that 
the UK and Italy will not be 
among the initial members. 
And is not the anti-inflationary 
credibility of a likely Emu 
member still higher than that 
of an outsider? 

In feet Britain stands as good 
a chance of fulfilling the Maas- g 
trichl criteria for Emu mem- 
bership as most of the probable 
members. The present British 
government looks likely to 
exercise its opt-out mainly 
because anything else would 
split the Tory party from top to 
bottom. Meanwhile, financial 
markets are not yet completely 
convinced (a) that Labour will 
win the next election, (b) that, 
if it does, it will have the cour- 
age to follow the instincts of 
its present leadership and join 
Emu (although my own view is 
that it would) and (c) that, 
even if a Labour government 
did join Emu, this would out- 
weigh its pro-trade union 
instincts. 

The important point is that 
opting out of Emu does have 
an economic price which the 
UK may already be paying in 
long-tom Interest rates higher 
than those of partner coun- 
tries, and in the need to rein- 
force confidence by base rate 
increases earlier than it other- 
wise -might. This is not an ele- 
ment of policy which either the 
Treasury or Bank would at 
present emphasise: which is all 
the more reason for others to 
do so. 


LETTERS TO THE EDITOR 

Number One Southwark Bridge, London SE1 9HL 

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


Coal sale must stress viability 


From Mr George RJ Guise. 

Sir, You are right to argue 
that the taxpayer should 
receive the highest possible 
return on the sale of British 
Coal, but wrong to claim that 
this is measured solely by the 
highest bid (“Privatising Brit- 
ish Coal”, September 12). 

The highest return to the 
taxpayer would be for tie prob- 
lems of the long-suffering coal 
industry to be taken from gov- 
ernment's door and never to 
return. The chance of this hap- 
pening will be maximised by 
selecting whichever bid dem- 
onstrates the greatest financial 


and operational viability and a 
fair price far ftiture cash flows. 

For example, a very highly 
geared bid which crashed a few 
years down the road, perhaps 
at election time, would have all 
the bleeding hearts back at the 
Department of Trade and 
Industry's and the Treasury's 
doors. Ministers would be nos- 
talgic for the relative tranquil- 
lfty of October 1992. 

For the coal Industry to 
move irreversibly into the pri- 
vate sector, the winning bid 
must also demonstrate a lead- 
ership which, has the support 
of the workforce as well as the 


marketing and technical skills 
to maintain sales of a commod- 
ity, currently in chronic over- 
supply, while continuing to 
produce at an internationally 
competitive cost 
The government should 
therefore be seeking a proposal 
which not only proffers a fair 
price but, even more impor- 
tantly, faffs the lea st rfiancn of 
returning the industry to tts 
own doorstep. 

George RJ Guise, 

( prime minister's policy unit, 

19S&90X 

90 Long Acre, 

London WC2E 9RA 


Minimum solvency to protect pensions 


From Mr Ban Amy. 

Sir, Your article "Pensions 
body calls for more time on 
short-fells" (September 12) sug- 
gests that the National Associ- 
ation of Pension Funds has 
changed its views on the need 
for a minimum solvency 
requirement (MSB) as proposed 

in the government’s white 
paper on pensions. This is not 
the case. The NAFF continues 
to believe the MSR is an essen- 
tial part of the new framework 
to ensure greater protection of 
members* benefits. It will pro- 
vide an early warning of a 
scheme running Into financial 
difficulties and will be impor- 
tant. in underpinning the pro- 
posed compensation scheme. 


However, the annual mini- 
mum solvency test is only a 
snapshot at a point in time. 
The best way to maintain the 
security of members’ benefits 
is for the employer to make a 
long-term enn u n if -ment to final 
the scheme on a prudent basis, 
subject to regular review by 
independent actuaries. Satisfy- 
ing the MSR on a regular 
annual basis should be seen as 
a by-product of such prudent 
long-term, funding. 

Where a scheme is being 
funded on a prudent long-term 
basis, any shortfall against the 
MSR is very likely to be tempo- 
rary and should not automati- 
cally have to be corrected in 
the short time spans proposed 


by the government In such cir- 
cumstances, and if the employ- 
er’s covenant is good, the new 
Occupational Pensions Regula- 
tory Authority should have 
authority to allow longer peri- 
ods for solvency to be restored. 

Such an approach would 
help to ensure that precipitate 
and unnecessary action is not 
taken where the MSR deficit is 
judged to be of a temporary 
nature and is likely to be cor- 
rected by continuing normal 
funding. 

Ron Amy, 
chairman. 

National Association of Pension 
Funds, 

12-18 Orosoenor Gardens, 
London SW1W QD3 


No question 
of class here 

From Dr G Wallemoem. 

Sir, I very much appreciate 
Quentin Peel’s and Judy Demp- 
sey's articles about Germany 
such as the one on the German 
election campaign, “Firmly 
footed for the final hurdle" 
(September 10). Unlike many 
German journalists, they give 
a rfpgr and unbiased view. 

What I dislike, however, is 
the translation of Bundestag 
into lower house (and, like- 
wise, Bundesrat into upper 
house). Since there are neither 
commoners nor lords in this 
country, no reference should 
be made to class. I think the 
British reader does not need 
such translation. 

G Wallenwein, 

Antomtergasse 4. 

D-6S812 Bad Soden, 

Germany 


Prison policy unchanged 


Prom Mr Derek Laois. 

Sir, I am responding to 
points made by Mrs Paddy 
Seligman in her letter pub- 
lished in several newspapers 
and referred to in your report 
"Howard accused on jail rule 
change” (September 13). Nei- 
ther the home secretary nor 
the prison service has sanc- 
tioned any relaxation of secu- 
rity for IRA prisoners or provi- 
sion of any special privileges. 

When the special unit which 
held the IRA prisoners at 
Wbitemoor was first opened, in 
July 1992. it was not general 
practice to conduct rubdown 
searches of viators to prison- 
ers in all such units. Following 
a review of policies, instruc- 
tions ware issued by prison ser- 
vice headquarters In May of 
last year which required full 
rubdown searches for all visi- 
tors in all special secure units. 


That policy has applied at 
Wbitemoor since the reopening 
of the special secure unit In 
June 1993. It will be a mutter 
for the inquiry which is now 
under way to confirm that this 
policy was being fully imple- 
mented. The prison service pol- 
icy is that no special privileges 
are given to IRA prisoners that 
are in any way different from 
other prisoners of the same 
security category. 

Maintenance of security is 
the top priority for the prison 
service. Our policy is to ensure 
adequate staff are available to 
maintain security. There have 
been no reductions in the num- 
ber of security staff at White- 
moor, which is fully staffed. 
Derek Lewis, 
duedorgmeraL 
HM Prison Service, 

Cleland House, 

Page Street, London SWlP 4LN 


Telephone 

tariffs 

compared 

From Mr Alan Harper. 

Sir, Your report of Mercury 
One-2-One’s new business tariff 
("Lord Young left with a face 
to match his bright red bow 
tie", September 9} compared 
the quarterly access charge for 
our Inside Option (£64.47) with 
the quarterly charge for a fixed 
BT business line (£32.66). A 
more relevant comparison 
would have been against the 
combined cost of subscribing 
to both a BT business line and 
a cellular phone - typically 
£107.66 per quarter. 

By offering daytime “fixed" 
calls from an office/workshop 
location that are cheaper than 
BT and “mobile" ^n.g that are 
substantially cheaper tfaan on 
the conventional cellulak net- 
works, Mercury One-2-One’T^as 
created a very competitively: 
priced and self-contained com- 
munications package with 
great appeal to the self-em- 
ployed business community. 

Our market trials of Inside 
Option demonstrated that the 
self-employed entrepreneurs 
who form the bedrock of the 
economy are less fixed in their 
t h in ki ng about innovations in 
telecommunications than 
many commentators. 

Alan Harper. 

business strategy director. 
Mercury One-ZOne, 

Elstree Tomer, 

Elstree Way, 

BonhamtxxxL Herts WDs WT 


Probably not 
a gambler 

From Mr Chris Adam. 

Sir, Re the article “Hand in 
hand" (Technology, September 
6), I was surprised by Prabba 
Fernandes’s Interpretation of 
the probability theory applied 
to gambling, "the more you 
play, the better the of 

getting a hit”. Any seasoned 
gambler will know that the 
odds of any random event 
occurring are not influenced 
by the history of that event 
Either Mr Fernandes is a suc- 
cessful research executive or 
an unsuccessful gambler. 

Chris A dam, 

Glaxo Research and 
Development, 

Stackley Park West 
Uxbridge, 

Middlesex UBU 1BT 




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FINANCIAL TIMES 

Number One Southwark Bridge, London SGI 9HL 
Teh 071-873 3000 Tdex:.S22186 Fax: 071-407 5700 

Thursday September 1 5 1 994 


Mr Clinton’s 
slow track 

President Clinton's troubles are but tip passage of the round itself, 
co ming in battaftons.Now he has Rightly, the administration 
had to abandon his request to decided that the round was the 
attach a “fast-track" a uthority jto^ r rJ ffrst priority. Ratification should 
the passage of the results of She ( -now proceed apace, which ought 
Uruguay Round of multilateral ' ' to shame laggards elsewhere, not 
trade negotiations TMsae8}af£ : is least the European Union. It Is 
not without advantages. Bufrthe - ~ also flffflcnft to weep tears far the 
disadvantages o ut weigh 9nm, > lack of an ohhgation to negotiate ' 
<^ ' t i rp the (Tfi <*npacity to pretax qwrfc On Tnhnnr and emrlr ffliwiAnt fl ] atari, j 
ous new trade negotiations has darts. Ur Mickey Kan tor, the US : 
probably been crippled. " trade representative, wQl stffl be ' 


disadvantages outweigh Siam,' 
since the US capacity to enter serf- 
ous new trade negotiations has 
probably been crippled. 

The purpose of a -fast-track 
authority is to en s u re that Con- 
gress will vote an the result* of a 
negotiation as a whole. Jn the 
absence of such an authority; US 


able to raise these topics fn negoti- 
ations. But be will, fortunately, be 
unable to tell his counterparts 
that they must give the US some- 
thing in these areas to meet corti- 


partners believe negotiations are ;■* tkms set by Congress, 
likely to prove fruitless, ■ since- ‘ The prior question, however, is 
their results are exposed to the ' whether these wQl be any nsgotia- 
ttearii of a tions The Clinton adminlstra- 

True, the US has ‘ehtered^trade ’ 5 tkm’s intention to pursue trade 
negotiations without mr .rhe^tiatfams actively within the 
authority in the post But the cur- - Americas and the Asia-Pacific 
rent resurgence of protectionist .Economic Co-operation forum has 
wntimant maima that comae risk-' v beea derailed. -The president has a 
ler for its partners and less- a nmmit with, the fo rmer grouping 
rewardmgto itseff tfartdnringthe -5h Iflami in December, unit with 
early yeara of the Uruguay Round, ^ the” latter grouping in Jakarta in 
In any case, nothing much hap- November. What can he now 
pened in the Uruguay Tteund. bring them? 
either until a fasttrack authority ft may, in fact, prove impossible 
was gr anted. for the adminirtratimi . to impart 

The reason Mr Clinton has been*? momentum to any trade negotia- 
forced to -drop the request, which - tfons fin* file balance of its term. 
had been aHarfwd to the' Uruguay But what does not go forward may 


Round package; says nmch-'ahoiit: 
why it was i mpor t a nt. His admin- 
istration and, indeed, most •Dane-' 
crate regard the incorporation of 
labour and environmental stan- 
dards in further trade negotiations 

as essential, while Republicans 
regard their inrinaton as anath- 
ema. Tha result of the conflict was 
a stalemate not just on fast track. 


well go backwards. That is still 
■more likely when many of (ha new 
■ are dwjty to m^inin 

towards protectionism. ft is good 
news that the US should soon 
write finis to the long effort to 
negotiate the Uruguay Round. But 
that is the past The future of 
trade policy is now shrouded in 
doubt 


A new Ken 


Mr Kenneth Clarke has seen fee; 
Mure and it is wearing * fadfe 
shirt Not content with Monday® 
display of monetary au ster i ty , the 
chancellor of the excheqneris tak- 
ing Ids party to expect the same 
prudence with regard to faxed % 
is asking the government to gam- 
ble that making ihe voters feel 
safe is a surer re-election strategy 
than trying to make them feel 

go®*. " • v ■ • ,r r r ' 

On the face of it, Mr-Ularke's 
approach makes goodlecttnomic 
and political sense. Sterling's 
h umiliating departure from fiie 
European exchange rate mecha- 
nism left the public, as well as tire 
financial markets, distrustful of 
the government's macroeco nomic 
credentials. 

A single pre-emptive interest 
rate increase, like Monday's half- 
paint rise, wfll not convince them 
that the Conservatives are once 
again the party of sound money. 
Resisting preelection tax cuts, on 
the other hand, might look 
impressively frugal, particularly if 
the Conservatives continue to lag 
so far b ehind in the polls. 

Yet Mr Clarke’s hair-shirt has a 
number of Mies. Tbe first is prac- 
tical; Mr Choke may not convince 
file rest of bis party that austerity 
mpkog sense. Resisting tax cuts in 
this November’s budget will not 
be too drfnmTt, since many in the 
party had already accepted that 
an early giveaway was unlikely. 
In 1995 and 1996, however, the 
pressure for some pre-election, 
crowd pleasers could be consider- 
able. 

: In f act, no credible chancellor 


can definitively rule out tax 
flhang pg — whether Increases or 
cuts - for. the earning two or three 
years. The target of- Mr Cfariufr 
sombre warnings would seem to 
be. hot s uppor ter s of lower taxes, 
per se, but those who would wish 
him to lower them in the run-up 
to the next election, even if tbe 
gnv armnflnf g public spending tar- 
gets have not been met 
■’ Mr" Clarke may be correct that 
fryingjp, revive a ybtar feel-good 
factor wifhtax cute could backfire 
on -the . gov ernment ff the fiscal 
deficit were to remain high. In 
truth,' however, thepubEc sector 
harrowing rapnrement is likely to 
feu dramatically ova: Ihe period, 
thankn to fhe combined effect of 
lower inflation and economic 
recovery. 

Indeed, the figure for 199344 is 
likely to be around. .£30tab£31hn, 
considerably less than the £36bn 
predicted at the time of the last 
Budget. Keeping to last year’s 
nominal spouting targets has 
proved simpler thaw many sup- 
posed, since very, low inflation 
enables a greater volume 
of spending at na t additJonal 
cost 

It is possible that Mr Clarke is 
simply playing a chancellor’s tra- 
ditional role, by lowering pre-tad- 
getary expectations. Certainly, if 
miniriers really believed that tax 
cuts were ruled out, they would 
have every incentive to think of 
ways to spend the extra cash 
granted than by lower hrfhitian- 
Mr Clarke should be carafolnot to 
encourage quiet pre-election prof- 
ligacy Of thin Vrnri. 


Polish lessons 


The debt-reduction accord signed 
With great fanfare in Warsaw yes- 
terday is a case of virtue 
rewarded. Nearly five years after 
pKHw errng “shock therapy” mar- 
ket reforms, Poland is an eco- 
nomic success stray, by post-com- 
munist standards, with a growth 
rate last year of 4 per cent. The 
debt ag pwwwfiwt, which halves the 
country’s $l4bn commercial debt, 
will complete the nation’s eco- 
nomic transformation, by ma ki ng 
Poland a member in good sta nding 
of the international financial com- 
munity. 

While Poles have a right to cele- 
hrate, thrfy less successful n e igh- 
-boors to the east and south would 
do well to consider how they 
earned It The first Polish lesson is 
speed. Radical economic reforms 
work test when, as in Poland, 
they are- implemented immedi- 
ately after *h« collapse of the old 
regime, when governments have 


□durance. The 

cowardice - of 



enough. The third Polish, lesson is 
that a package of reforms can be 
much more than the sum of its 
parte. Privatisation, tbe one area 
in which Russia has moved more 
radically either Poland or 
Hungary, is no bad thing, but it is 
not the key to successful reform. 
What matters, instead, is to create 
a market through liberalisation 
and macro-economic stabilisation. 
Governments, must force enter- 
prises to live, or die, in that mar- 
ket, by severing the umbilical cord 
that ties tngfHragnt state factories 
to the state treasury, ultimately 

stran gling both. 

This Is, of course, no e asy t ask, 
because many inefficient state fac- 
tories must be shut down and 
their workers be made at least 
temporarily unemployed. The 
fourth Polish lesson, which 
applies with even greater force to 
piiggin and Ukraine, is that west- 
ern finaivnai backing, at the right 

nnn MWg illu B HfpJiW'Vflt 


for countries about to throw ttem- 
s elves into the . initially frigid 


Bus- decisive changes is running out. 
trier- They must act radically and ccmr 
»un- prebend vely, as the Poles did. but 
Is first they need a Ann and detailed 


O n Tuesday Marion 
Barry, convicted four 
years ago on cocaine 
charges, was in effect 
elected for the fourth 
time as mayor of Washington, DC 
On Monday Oliver North, whose 
criminal conviction on Iran-Contra 
offences was only overturned on a 
te ch nicality, was basking all over 
Virginia in the day-long company of 
Senator Robert Dole, titular head of 
the party of Abraham ijucmn 
There might not seem much in 
common, beyond brashes with the 
law and political nmhitim? between 
Mr Barry, whose Democratic pri- 
mary victory virtually assures 
he wfll get his old job back on 
November 8, and Mr North, who 
has a good chance of becoming the 
next US senator frran Virginia. Bat 
their very disparate supporters - 
poor and black in tbe nation’s capi- 
tal and disgruntled and white fa the 
contiguous state to tbe south - are 
saying pretty nineh the mu thing 
mid it resonates across the c ount r y. 

The message, which amounts to 
"we want oars", is -that the dism- 
franchised and dispossessed, as 
they see themselves, have had 
enough of the political establish- 
ment It was a voice heard loud 
enough in the 1992 presidential elec- 
tions when 62 per cent of the coun- 
try voted for Bill Clinton and Ross 
Perot and against the Washington 
status quo. But now it is the Demo- 
crats who represent the establish- 
ment Mr Clinton’s message of 
“change” is faltering in the public 
perception while the party- cannot 
hide tike fact that it has ruled Con- 
gress largely u ninter ru pt ed for the 
past 40 years. 

For file Democrats, the triumph 
of the disgraced Mr 

Barry Is simply another embarrass- 
ment. For Mr Dole, who earlier this 
summer had expressed reservations 
as to whether Mr North was the 
sort of person he wanted represent- 
ing his party in the Senate, the 
prospect of any Republican gain on 
November 8 is now reason enough 
to cast personal doubt aside. He 
has, after all, always fancied his 
instinct fra the jugular and the 
Democratic throat is invitingly 


Its margin for safety in the con- 
gressional art state midterms, espe- 
cially in the Senate, is shm. ft com- 
mands the Senate by 56 seats to 44, 
file House by 256 to 178 (with one 
independent) and the govemraaMpe 
by 29 to 19 (with two independents). 
As usual. Democrats are defending 
far more seats than Republicans 
art anything much worse than the 
average loss incurred by every new 
president in maiden midterms since 
the war - four in the Senate art 26 
in trie House - could hand the Sen- 
ate back to the Republicans for the 
firat time since 1986. A real Demo- 
cratic debacle, unlikely as it may 
be, could produce a Republican 
House, last seen in 1964. 

It may seem odd that this should 
be so, g iven the relative health of 
the/US eaJifffigy/ tfid - dSnilnaiiE 
issue in. Mr Clinton’s election two 
short years ago. But the midterms, 
with their focus an local issues art 
personalities, rarely are driven by 
national thanes. The public mood 
remains very sour on politicians in 
general and on Democrats in partlo 
ular. 

Mr Bout may only intomitimitly 
visit this planet art Ms nascent 
political organisation. United We 
Stand, stm rests in the cradle. But 
his supporters, aE contactable an 
computerised registration lists, are 
increasingly identified with Repub- 
lican, not Democratic, positions. 
Voter turn-out, compounded by 
Democratic disaffec ti on, is likely to 
be typically low, which favours the 
more motivated Republicans, above 
all tbe zealots oh the right 

Mr Clinton's own popularity, now 
40 per and falHrig , is of no hrip 
to Democratic candidates who are 
distancing themselves by the dozen 
from Mm. The failure to pass mean- 
ingful healthcare reform has 
deprived the president and iris party 
of a prime domestic issue, while the 
crime MU was so messfly approved 
that credit is hard to rfahw He 
Democratic national committee Is 
in disarray, its young Ctintonista 
chairman. David Wflhehn. put out 
to pasture, with the White House 


Oxbridge 
Keele hauled 

■ Tbe Keele connection continues 
its conquest of Whitehall, leaving 
products of the Oxbridge finishing 
school strewn in its wake. Keele 
University graduate Richard 
Mottram will take the top job in the 
Ministry of Defence when Sir 
Christopher France retires to 

March 

Back in Ms old department, 
Mottram will have another Keele 
man as his deputy - Moray Stewart 
Art at trie weekly meeting of 
permanent secretaries (the "College 
of Cardinals”) he will he in the 
company of John Vereker, the Keele 


s ea*etary at t be Overseas Defence 

Administ rati o n. 

Mottram, 48, was tbe star 
prosecution, witness at the trial of - 

dive Pouting over leaked 
documents an the torpedoing of the 
Argentine cruiser. General 
Bdgrano, during the FaDdands war. 
As private secretary to the then 
defence minister, Michael Heseltine, 
Mottram gave evidence in camera 
on a top-secret document, known as 
the ’‘Crown Jewels”, which dealt 
with the events leading op to the 


The US president’s falling popularity will 
hinder Democratic candidates as they 
prepare for midterm polls, says Jurek Martin 

Revolt against 
Washington 



. The chatonger KrtMaan Brawn, 
!l? sdon of the state's most Hustrious 
Sj» poWcat dynaWy 


political staff undo- Lean Panetta 
too preoccupied in Washington to 
fin the void. 

Foreign policy is not intruding 
much but the prospect of an 
unpopular invasion of Haiti does 
not help Democrats, except possibly 
with blacks. Opposition to Illegal 
immigration is a popular cause in 
California and Florida, providing 
rich pickings for. two incumbent 
governors in tight races, Pete Wflr 
sen, the Caftfanda Republican, art 


Lawton Chiles, the Florida Demo- 
crat, both only too wflhng to blame 
local problems on Washington mis- 
management. The immigration 
issue suggests that the strain of iso- 
lationism so evident in the 1992 
campaig ns of Perot art Pat Buch- 
anan, the Republican conservative, 
is still virulent 

Although only a handful of 
incumbents was turfed out in party 
primaries thte year, holding office is 
probably no mare of an asset now 


UNDER STARTER’S ORDERS 


C ALIFORNIA; for gover- 
nor, Pete Wilson against 
Kathleen Brown, If Mr 
Wilson, the Republican 
Incumbent, wins re-election con- 
vindngiy, an improbable prospect 
as the year began, he would 
become a huge national political 
force - to the point, some salons 
pundits believe, of becoming the 
instant favourite for the party’s 
presidential nomination in 1996. A 
“new face, west-east” ticket pairing 
him with Christie Whitman, the 
popular tax-cutting governor of 
New Jersey, has many Repubticans 
salivating — thou g h not the reli- 
gious right became both are pro- 
choice on abortion. 

If Ms Brown, the state treasurer 
from California’s most flhutrioiis 
political family (da u g hter of Gov- 
ernor "Pat”, sister of Governor 
Jerry), revives her faltering cam- 
paign art triumphs, she, too, 
would assume great national signif- 
icance, if not for 1996 then cer- 
tainly for the mfllemual election. 

Mr Wilson is benefiting from a 
state economy finally in recovery 
and he has taken a tougher One 
than Ms Brown against Illegal 


some years, he may yet be a 
candidate to succeed Oxford- 
educated Sir Robin Bnfler when 
the latter retires as cabinet 
secretary art head of the civil 
service in 1998. 


immigration and on crime. But he 
caold end up as 1994’s Jhn Florio, 
the New Jersey governor who also 
appeared to have risen from pits of 
unpopularity last year only to be 
beaten at the wire by Ms Whitman. 

For the Senate, Dianne Feinstein, 
the Democratic incumbent art for- 
mer mayor of San Francisco, 
against Congressman Wkl i f i Hnf- 
fington, the transplanted Texas oil 
heir married to the ambitions for- 
mer Ms Arianna Stasslnopoulos, 
who makes Hillary Clinton look 
positively retiring. No race any- 
where will be more expensive and 
Mr Buffington will probably more 

than double the flOm be spent in 
1992 to win Ms House seat Lavish 
campaign advertising has narrowed 
Ms Feinstoin’s lead appreciably, 
but both Mr Buffington and Ms 
wife are now facing much media 
scrutiny and some derision. 

NEW YORK: for governor, Mario 
Cuomo, the Democrat going for a 
fourth tram, against George Pataki, 
hitherto obscure Republican state 
legislator. The state may be getting 
bared with its prince of the Hud- 
son, who keeps declining offers to 
move to Washington. A Cuomo loss 


Observer 


would be devastating to liberal 
Democrats nationally . 

VIRGINIA: for the Senate, the 
joke is that the state would rather 
vote for none of the four candi- 
dates. Two independents muddy the 
"character” war between Chuck 
Robb, file incumbent, two-term sen- 
ator whose confessed extramarital 
sex life has left him open to orfti- 
dsra, art OlHe North. Doug Wilder, 
former Democratic governor. Is 
r unning because he cannot 
Mr Robb, art Marshall Coleman, 
file Republican, wants to stop Mr 
North. Neither will win, hut how 
they do may decide the outcome. 

The North advantage Is that at 
least Ms fanatical core support is 
solid, especially from tin religions 
right, now a real power in Virginia. 
The Robb edge lies in the populous 
Washington suburbs which hoped 
t hey ha d seen the last of North. 

TEXAS and FLORIDA: notewor- 
thy because two sons of former 
president George Bush are Republi- 
can candidates. George W. Jr takes 
on the salty Ann Richards in Texas, 
while Jeb has a chance of handing 
Lawton Chiles his first ever defeat 
In a Florida election. 


Downpour 


outcome. 

shock alone is not 


support in reward for taking the 
plunge. 


the Office of Public Service art 
Science for the past two years, has 
been looking Jlter William 
Waldegrave’s civil service reforms. 
Tipped for the top defence job for 


■ It would seem sensible for 
companies to choose appropriate 
mnzak to pipe over their telephone 
Irne to entertain or otherwise those 
callers left on hold. Walt Disney 
p i Tmp C out therm* wnsWi frr tm rfrg 

films. British Airways trills arias 
from its television, commercials. But 
the prize for the most apposite piece 
of music must aurdy go to the 
embattled French bank. Credit 
Lyonnais, its- current choice is Gene 
Kelly’s classic. Singing in the Rain. 


Tactical retreat 

■ Sounds as if me very important 


today's junkets following the 
toan-signfog in Warsaw of Poland’s 
debt reduction deal - and it Is not 
Citibank's Bill Rhodes. Polish 
president Lech Walesa has dried off, 
citing a previous ©igagemmt in 
Poznan where he Is dim to fire the 
closing shot in the first ever Nato 
manoeuvres cm Polish so£L 
Same western bankers are miffed 
once tbe president? 8 diary seems 
remarkably empty today. He’s not 
due on parade in Poznan tin 
tomorrow. Conld it be that Walesa 



view of the City”, certain 
luminaries were looking forward to 
running tbe tome to earth in their 
local bookstore and consulting the 
Index for references to themselves. 
Maher, in cahoots with his 
publishers, has spoilt the fun by 
omitting an index. 


Forty years on 

■ There may be precious few new 
ideas in British politics, but it 

i f i ininti ri i wa «wn< as if there is 3U 
even bigger shortage of political 


Td escape but there are too many 
people out there already* 

is playing safe art distancing 
himself from a deal which, could 
tom out to be a mite too generous 
to the banks? Much meat! likely is 
that he is desperate to get Pdart 
into Nato art doesn't want to do 
anything to upset the Nato high 
command. 

Bankers are much more 
expendable. 


Spoilsport 

■ So Terry Maher has a sense of 
humour after alL 
With the deposed Fentos 
founder's book Against Ify Better 
Judgment offering an “insider’s 


Take tfa fafe Tain MacLeod who, 
when he was minister of labour, 
called on Ms Conservative party to 
face up to the challenge of 

a nfimnatinn and other ftarin pmwrta 
with a pamphlet entitled Change is 
our ally. Now Paddy Ashdown, the 
leader of the Liberal Democrats, has 
produced a paper setting out Ms 
agenda for taking politics beyond 
the three-party system and into the 
2lst century. 

Its title? Making change our ally. 


Promise to pay 

■ The once mighty greenback, all 
too frequently discovered these 
days to be cartying traces of 
cocaine, was devalued several more 
cents fids week with the jailing of 
one of its fonner signatories. 

The buck has stopped inside the 
dink for Catalina Vlllalpando, who 
ran the US mint during most of the 


seat Republican net gain is all that 
is required in practice, since Sena- 
tor Richard Shelby, the Alabama 
Democrat, as often as not votes 
with the opposition art could even 
be tempted into switching sides. 
The best Democratic hope at pres- 
ent seems to be to limit tbe haemor- 
rhage to four or five seats. 

But the list of its endangered spe- 
cies is disturbingly long, it even 
now includes Maine, where Senator 
George Mitchell, the majority 
leader, would have walked back in 
had he not ch o s en retirement but 
where Republican congresswoman 
Olympia Snowe is now favoured. 
Ohio, Arizona, Michigan art Okla- 
homa are Incumbent-less Demo- 
cratic seats at serious risk, while at 
least three prominent senators, 
Dianne Feinstein in California, Har- 
ris Wofford In Pennsylvania art 
Frank Lautanberg in New Jersey, 
appear in the fittest of races. 

Even presumably rock-solid Dem- 
ocratic seats, such as those held by 
Edward Kennedy in Massachusetts 
art James Sasser in Te nnes s e e, are 
now, according to local polls of 
varying reliability, fragile. It does, 
however, boggle tha mind that Mr 
Kennedy. 32 years a Senator, might 
lose to Mitt Romney, son of George 
Romney, a fleeting favourite in tbe 
19G0s for the Republican presiden- 
tial nomination. 

Offsetting this, the Democrats 
rotate some hopes of picking up the 
open Republican-held seats in Min- 
nesota art Wyoming and conceiv- 
ably that occupied by Conrad Burns 
in Montana. They also console 
themselves with the knowledge that 
a lot can happen in two months. 


T he realistic Republican 
target in the House 
seems to put control 
beyond read*, but a 80- 
seat pick-up would give 
the party more seats than U had 
held hi 40 years art would aunty 
shift the chamber's ideological bal- 
ance appreciably to the right This 
would be mantm from heaven for 
Congressman Newt Gingrich, the 
aggressive conservative from Geor- 
gia who is virtually certain to 
assume the Republican leadership. 
Some erf the wafer-thin margins of 
victory won by the administration 
on Issues such as the budget trade 
art the ban an automatic weapons 
would be bard to replicate. 

Republican control of the Senate 
would not mean business as usual 
for either President Clinton or the 
rest of the world. Columnist Wil- 
liam Saflre of the New York Times 
recently noted with barely dis- 
guised glee some of the conse- 
quences for key committee chair- 
manships if power were to change 
hands.. 

Senator Jaase wrims, the right- 
wing scourge of all liberally-in- 
clined diplomats art foreigners, 
could, if he wanted, have foreign 
relations, unless he chooses to pro- 
tect Ms North Carolina tobacco 
farmers by taking agriculture. 
Strom Thminort, age 91 art hardly 
less conservative with file passing 
years, would succeed Sam Nunn at 
armed services. A1 D ‘Amato would 
surely turn ftp banking committee 
into a running forum for WMte- 
water charges, ft is a partisan team 
that would give the White House 
fits art pretty much ensure short 
shrift for any presidential policy ini- 
tiatives in the next two years. 

Intriguingly, the Republicans 
stand on the brink of what would be 
a relative nirvana without necessar- 
ily offering much of a coherent 
alternative of their own to the poli- 
cies of President Clinton art Ms 
party. The party's own severe fault 
lines between its traditional centre 
art hard-line right r emain pal pable 
art a potential handicap for the 
national campaign in 1996. 

Nor, history suggests, would a 
midterm disaster for Mr Clinton 
necessarily consign him to the 1996 
presidential wastebasket House 
seats lost in both Eisenhower's art 
Reagan’s first midterms (18 art 26 
respectively) were larger than the 
15 art Mgh* of 1978 and 1990 under 
Jimmy Carter and George Bush, 
who did not survive the next elec- 
tions. But that may he a small con- 
solation if the morning of Novem- 
ber 9 lives up to Mr Dole’s 
expectations. 


than even in 1992. Up for grabs an 
November 8 are 35 Senate seats, 22 
held by Democrats; all the House; 
art 36 governorships, 21 of them in 
Democratic harts. Open seats, cre- 
ated mostly by retirement, leave the 
Democrats further exposed since 
they occupied six of the nine Senate 
seats art 49 places in the House. 
Additionally, as many as 35 of the 
party's large House freshman class 
appear vulnerable. 

In the Senate, a six, not seven. 


Bosh administration. 

Having under-reported taxable 
income by $180,000, misled 
government officials In the 
confirmation process, art 
obstructed a federal investigation in 
order to secure her job in the first 
place, she now has four months 
inside and 200 hours' community 
service to which to look forward. 

VnialpaDdo. whose notoriety until 
nOW had been cnnftnpH to her 
application of the epithet 
“skirt-chaser” to Bill Clinton for the 
purposes of the 1992 Republican 
party conference, admitted that she 
was “no longer the role model”. 

No wander the dollar in your 
pocket fetches less than Y100. 


Tory fare 

■ Baroness Thatcher may not be 
quite so ubiquitous as she once was, 
but her supporters are. dearly 
planning a nostalgic gathering at 
this year's annual conference in 
Bournemouth. 

There at the top of the Hst of 
approved restaurants published in 
the official Conservative guide is 
Mrs Ta Supper Room, which 
promises a six-coarse feast in a 
Victorian atmosphere. 

If that palls, the faithful can go to 
Glorianna's or the Old Eugfart, 
also recommended. No doubt Kan 
Clarke and Jfichael Heaeftfne will 
be at the European Restaurant, 
which, paradoxically, offers English 
food. John Major will probably be at 
Clown’s. 



















14 



Specified 

Worldwide 

^k|LB.PfenticsUi« 

■ Tat 0773 302311 


FINANCIAL TIMES 

Thursday September 15 1994 



Concern over Adams' plan for US propaganda tour 

UK edges closer to lifting 
Sinn Fein broadcast ban 


By David Owen, Jimmy Bums 
and John Murray Brown 

The abolition of Britain's 
six-year-old broadcasting ban on 
Sinn Ffein may come closer today 
amid signs that the government 
is edging nearer to accepting that 
the IRA ceasefire is permanent 

With London under pressure to 
respond more positively to last 
month's IRA announcement Sir 
Patrick May hew, the Northern 
Ireland secretary, is expected to 
use today's first full cabinet 
meeting for two months to argue 
that the ban no longer serves any 
useful purpose. 

Conservative rightwingers, 
however, remain convinced that 
an early lifting of the ban would 
be unwise, any move may be 
delayed until after next month's 
Conservative party conference in 
Bournemouth. The sixth anniver- 
sary of the ban’s imposition will 
fall on October 19. 

Meanwhile, Mr Gerry Adams, 
the Sinn Fein president appears 
ready to conduct a major propa- 
ganda tour of the US given that 
his visa is almost certain to be 


granted. Mr Adams is pushing 
ahead with plans to visit at least 
10 US cities, including Washing- 
ton and New York, though he has 
not yet submitted a visa applica- 
tion. 

A draft programme of the trip 
is understood to include meetings 
with Senator Edward Kennedy, a 
leading Democrat. Mir Tom Foley. 
Speaker of the House of Repre- 
sentatives, and officials of the 
National Security Council who 
advise President Bill Clinton on 
Northern Ireland policy. There 
are also plans for Mr Adams to 
address high profile for ums such 
as the National Press Club and 
the Council for Foreign Affairs. 

Although resigned to the visit, 
London would be dismayed if Mr 
Adams succeeded in meeting 
Clinton administration officials. 
Senior Conservatives are also 
anxious that the trip should 
not coincide with the Tory 
conference, which begins on 
October 11. 

US. UK «nd Irish officials are 
thought to be in agreement that 
Mr Adams' visit should not pre- 
cede that of other senior political 


figures who are due in Washing- 
ton in the next two weeks. This 
suggests the visit could possibly 
coincide with the Labour confer- 
ence. beginning an October 3. Mr 
Adams is anxious to have his US 
trip well under way before con- 
gressional elections on October 7. 

As Dublin yesterday welcomed 
a statement supporting the peace 
process from IRA prisoners in 
Belfast’s Maze prison. Mr Major 
indicated the IRA had still not 
done enough to convince the gov- 
ernment that its cessation of vio- 
lence was for good. 

Speaking at Chequers , he 
hoped the IRA had given up the 
'intolerable outrages” it had con- 
ducted over 25 years but added: 
"They have not expressly said 
so.” He mid he hoped the govern- 
ment could build on the IRA 
ceasefire but would do so “in a 
way which will he secure.” 

Mr Major’s caution was 
strongly endorsed by Mr Andrew 
Hunter, the inflngwtifll chairman 
of the Conservative backbench 
Northern Ireland committee, who 
said Dublin's “euphoria” was 
"dangerous and misguided." 


Unilever detergent criticised 
by Dutch consumer group 


By Roderick Oram, 

Consumer Industries Editor 

Unilever’s new laundry detergent 
was criticised yesterday by the 
Dutch consumers' association, 
which concluded after tests that 
"the damage” the detergent did 
to some clothes was "too great”. 

Unilever rejected the report 
which is likely to intensify the 
‘Soap War* that has been raging 
between the Anglo-Dutch group 
and its arch-rival Procter and 
Gamble since Unilever launched 
the Power detergents earlier this 
summer. P&G is highly critical of 
the alleged effect of the deter- 
gents on clothes. 

Omo Power, which is sold as 
Persil Power in the UK, was as 
effective at washing clothes “as 
any other good washing powder 
and bleach.” the Dutch associa- 
tion said. But some fabrics, par- 
ticularly coloured cotton, were 
damaged in the test. 

"The data is partial and being 


used in a very emotive way ” a 
Unilever spokesman said. It crit- 
icised the association for making 
"sweeping statements” compar- 
ing Omo Power to other deter- 
gents when it had run tests 
against only one other un-named 
detergent 

It said the association had also 
failed to judge the damage to 
clothes and the alleged lessening 
of tensile strength, which wnahlaw 
a garment to resume its shape 
after being stretched, against tex- 
tile industry standards. 

It is understood that Unilever 
has seen the full data from the 
Dutch association's tests and 
found them comparable to data 
from six independent test insti- 
tutes it commissioned to study 
the detergent 

The six institutes found that 
the effect the detergent had on 
clothes was acceptable and fell 
within textile industry standards. 

In the UK, the Consumers' 
Association is conducting its own 


tests on Persil Power but the 
results wQl not be ready before 
mid-December. Marks & Spencer, 
which is also conducting tests, 
said it did not know when they 
would be completed. "We con- 
tinue to monitor the level of 
returned clothes but there’s noth- 
ing that causes immediate con- 
cern,” a spokesman said. 

Unilever said the impact of the 
Dutch report would be limited 
and that sales of ah products in 
the Omo brand had not been 
harmed by the controversy. 

Mr Erik Muller, a spokesman 
for Albert Heljn, the largest 
Dutch supermarket chain, said 
yesterday- “We see no reason for 
us to take it out of our shops. We 
will wait to see what the consum- 
ers do.” P&G welcomed the 
report. “This cannot come as any 
surprise in light of the evidence 
that had already emerged,” said 
Mr David Veitch, P&G’s Euro- 
pean vice-president of communi- 
cations. 


US group 
isolates 
breast 
cancer gene 

By C&ve Cootaon, 

Science Editor, in London 

An American research team has 
won the race to one of science’s 
most sought-after goals - Isolat- 
ing the gene that causes an 
inherited form of breast cancer. 

Dr Mark Scolnick auk col- 
leagues at the U ni v ersity of Utah 
have found the gene, called 
BRCAl, which is responsible for 
[ an estimated 3 per cent to 5 per 
cent of breast cancers, ahead of a 
dozen other research groups in 
the US and Europe. 

The discovery was announced 
last night by the US research 
journal Science, which wffl pub- 
lish <Waik next Hiwift 

At tiie same time, Science said 

an int omotinnal team ]gd by Dr 

Douglas Eaton of the Institute of 
Cancer Research in the UK was 
well down the road to isolating a 
second gene, BRCA2, which 
probably causes another 3 per 
cent-5 per cent of breast cancers. 

Finding the two genes will 
enable scientists to develop tests 
that women with a family his- 
tory of breast cancer can take to 
discover whether they are at risk 
of developing an inherited form 
of the disease. Prototype tests for 
BRCAl may be available within 
two years. 

Women who know that they 
carry the genes will be able to 
monitor their breasts more 
closely for early signs of cancer 
- or even have a mastectomy as 
a precaution. 

Those whose tests are nega- 
tive, despite a family history, 
will be reassured. 

But scientists say the discov- 
eries will eventually also help 
the 90 per cent of breast cancer 
patients whose disease is not 
inherited. Random mu tatio ns in 
the same genes are probably 
involved there too - and under- 
standing the chemical pathway 
by which BRCAl and BBCA2 
trigger cancer will help research- 
ers to develop drugs to treat the 

dimacp. 

“These are very exciting step- 
ping stones an the path to more 
effective treatment and diagnosis 
of breast cancer, 0 said Dr Brace 
Ponder, a UK Cancer Research 
Campaign scientist working at 
Cambridge University on cancer 
genes. 

The search for breast cancer 
genes has caught the scientific 
and popular imagination in the 
US particularly. 


Phone ruling spells savings I Forte buys Meridien hotels 


Continued from Page 1 

there was "some room” for split- 
ting the difference between 
leased-line rates and existing 
prices, but said that if, as expec- 
ted. it gains the necessary regula- 
tory consents it would itself join 
the resale market through its 
joint venture with MCI, the sec- 
ond-largest US carrier. 

Mr Thomas Luciano. AT&T's 
director of international settle- 
ments. said: "The industry is 


beginning to pull apart from a 
system of co-operation between 
carriers, which will open things 
up to a new way.” 

The new regime will put pres- 
sure on other European operators 
to agree to sharp reductions to 
international call prices. 
Although the US-UK regulators 
are likely to prohibit using the 
UK as a transit route to mainland 
Europe, international operators 
may find ways of manipulating 
the arrangements. 


Continued from Page 1 

approval of a FFr20bn capital 
injection from the French govern- 
ment 

According to Air France, Forte 
H a s Co mmi tted itself to ma fa iferin- 
ing the standard of the hotels in 
the Meridien chain, assuring its 
development and keeping its 
headquarters in Paris. 

Air France’s decision repre- 
sents a blow for Accor, which 
was seeking to add Meridlen’s 58 


four-star hotels to its existing 
operations. These include the Sof- 
itel, Mercure and Fonnule I 

trhaioR 

Accor described Forte’s offer 
for Meridien as unreasonably 
high, “hi the interests of share- 
holders, Accor has declined to 
match it,” the French company 
said. Last year, the M£ridien 
group fell into the red, recording 
a net deficit of FFr29.7m after 
suffering from difficult market 
conditions. 


FT WEATHER GUIDE 


Europe today 

Gale force winds are expected along the 
south-east coast of England, over the North 
Sea and in southern Scandinavia, owing to 
an area of low pressure over the North Sea. 
This low will also give significant rain in the 
Benelux, north-west France, central and 
southern Scandinavia and the Battle states. 
Thunder showers will precede a front over 
the Alps, northern and southern Italy and the 
western Balkans. Poland and western 
Russia wfl! have thunder. Showers w3l linger 
along the northern coast of Spain and 
eastern France. Several breaks in the cloud 
will appear in the Ukraine and northern 
Scandinavia. The Mediterranean region will 
stay sunny. 

Five-day forecast 

Friday will stM see gale force winds over the 
North Sea. The steady rain wfll become less 
extensive as it moves to northern 

Scandinavia and the Baltic states. The wind 
over the North Sea will slowly decrease by 
the end of the weekend. Thunder showers 
will develop again over the Alps. The 
Mediterranean will continue sunny. 


TOOAY1TDVBUTIRS8 






m 


1020 1010 


'TO 

■’T'-i 1 1 


I 

— ■ .16 v 

















Maximum 

Begng 

faJr 

26 

Caracas 

doudy 


Celsius 

Betfest 

doudy 

IS 

Cardiff 

doudy 

Abu Dhabi 

sui 

40 

Belgrade 

sheerer 

29 

Casablanca 

sun 

Accra 

fair 

29 

Benin 

shower 

17 

Chicago 

lair 

Algiers 

sun 

27 

Bermuda 

shower 

29 

Cologne 

rain 

Amsterdam 

thund 

12 

Bogota 

doudy 

19 

Defer 

fair 

Athens 

sun 

32 

Bombay 

fair 

31 

Dallas 

fair 

Atlanta 

fair 

30 

Brussels 

thund 

13 

DeW 

falr 

B. Ares 

cloudy 

21 

Budapest 

drz 2 f 

23 

Dubai 

sun 

BAam 

drzzi 

13 

CJtagon 

rata 

15 

Dublin 

show* 

Bangkok 

shower 

34 

Cairo 

HD 

35 

CWwovnBt 

thund 

Barcelona 

sun 

23 

Cape Town 

sun 

22 

Edinburgh 

fair 


Your frequent flyer program: 
Lufthansa Miles & More. 

Lufthansa 


fir 

front cold front JLA. IMrtdspeedlw kpH ’• 

Situation at 12 GMT. Tanpaatuma madman tv OBy. Forecast by Metso Consult of the /Vteffxrfencfs 

Caracas doudy 31 Fare an 24 Madrid swi 20 Rangoon cloudy 9 

Cardiff cloudy 14 Frankfurt rdn 16 Majorca sun 24 Raytevik fek 1 

Casablanca sun 24 Geneva shower 14 Malta fair 30 Rio & % 

Chicago fa* 27 Gtaaftar sun 28 Manchester rain 12 Rohm shower 21 

Cologne rain 16 Glasgow lair 15 Mania cloudy 31 8. Fraco Hr 2 

Dajja- far 31 Hamburg rain 16 Melbourne cloudy 16 SeoU sun 2 

Dallas fair 33 HafeWd dww » 15 Mexico City thund is Sngapcre doudy 2 

DeH fair 28 Hong Kong dowdy 29 Miami thund 31 Stockholm li 

Dubai sun 30 HonohAi fair 32 MHan ttnmd 21 Strasbourg &Bl 1( 

OibVn show* 14 Istanbul an 28 Montreal shower 20 Sydney fek 1! 

Dubrevnfc thund 27 Jakarta fair 32 Moscow am 22 Tangier sui Z 

Edntwgh rafr 13 Jersey raki 14 Mirtch tfcnd 15 TalAvtv am 3- 

KsracM fair 32 NafcsU fair 24 Tokyo rdn 21 

Kuwait sun 42 Naples doudy 24 Toronto cfeudy T 

L Angeles tar 25 Nassau thund 32 Vancouver doudy It 

Laa Palmas far 27 Non York shower 24 Venice thimd 2 

Lima doudy 18 Mca shower 23 Vienna shorter 2< 

Ldbon fair 22 Nicosia sun 37 W«aw shower » 

London QrzA 14 Oslo rain 12 Washington b* » 

LuxJxawg rata 13 Pads ran 18 VUeBtagton ft* V 

Lyon thund 16 Perth blr 18 Wtaripeg tar Z 

Madeira sun 24 Prague doudv 15 Zurtti thud u 


THE LEX COLUMN 


Competition calls 


The e x pected approv a l of a new form 
of competition between the UK and 
the US win s hake up the international 
telephone carteL With operating mar- 
gins on transatlantic calls thought to 
be over 50 per cent the scope for price 
cutting is huge. But not all operators 
will fare equally badly. BT could even 
emerge a winner. It is required by its 
regulator to cut its average price level 
anyway. So if international charges 
did not come down, it would have to 
cut other rates. Mercury, though, 
looks a big loss'. It is heavily depen- 
dent on TTrtwrijifinnal Mlh for profits. 

The impact will also be felt in conti- 
nental Europe. Operators will have to 
cut transatlantic prices or see traffic 
diverted through the U K. Of the 
quoted wwTipBntpg, Italy's STOTT and 
Spain's Telefonica are the winat vul- 
nerable. Not only are their interna- 
tional charges particularly high; 
approximately 10 per cent of their traf- 
fic is with the US. Holland's KPN and 
Tele Danmark rfwraM not gnffer as 
much. Their charges are relatively low 
and only about 5 per cpnt of theta- 
! traffic is with the US. 

As the old cartel arrangements 
crumble, the competing global alli- 
ances formed over the past year will 
crane to the fore. Increasing amounts 
of traffic will be channelled over theft- 
proprietary networks. Again, BT looks 
well placed. Its alliance with MCI 
gives it a presence an both shores of 
tiie Atlantic. AT&T’s position is 
weaker as it so far has no UK pres- 
ence, while tiie alliance between Deut- 
sche Telekom, France T&tecom and 
Sprint is barely off the drawing board. 
Non-aligned European operators will 
now be under increased press ure to 
join one of the main alliances. Other- 
wise, they face losing some of their 
most lucrative traffic. 

UK economy 

Yesterday’s UK inflation and unem- 
ployment data prompted the initial 
conclusion that Monday's base rate 
rise was not a pre-emptive strike after 
all. A closer look, though, reveals 
scant evidence that inflation is 
already fakfag off. The year-on-year 
rise in consumer prices is still lower 
than it was to June. The increase in 
average manufacturing earnings is 
decelerating and unit labour costs are 
falling : Retailers may be trying again 
to move away from discounting, but 
against the background of softening 
consumer confidence it is difficult to 
be sure that higher prices of clothing 
and footwear will stick. 


3079.8 (-41.6) 


Prudential 


tSvWond yield rofative to Ihe 
FT-S&A AS-Shara dMdsnd ytatd 

1.0 — : r- 



-1-2. — #i»~j 


Mar IMS 
Source FT GrapNW 


1984 Sep 


The markets thus have no obvious 
gro un d to conclude that a first base 
rate rise need be quickly followed by a 
second. That is small consolation for 
tiie equity market which was looking 
over-valued after its summer rally. It 
must now adjust to a more modest 
earnings prospect for 1995, because 
higher base rates will ensure a slow- 
down in demand if the recovery does 
not falter of its own accord. Where 
yesterday's reaction does look over- 
done. at least from a purely domestic 
perspective, is in the gilts market 

The snag is that gilts remain con- 
pled to the international trend. Yester- 
day's fell of more than one point at 
the long end was also a reflection of 
fresh worries about the Interest rate 
trend in Germany. In thin mvwtain 
r-iimnte there is not mnrh scope for 
the yield gap between the two markets 
to narrow much beyond its present 150 
basis points. But it will compound the 
problem for equities if gilts slip fur- 
ther as a result of developments on 
the co ntinent 

Prudential 

Prudential Corporation’s figures 
contained a number of bright spots: 
the g roup delivered an increase in 
profits from Jackson National Ufa, the 
US subsidiary which had threatened 
to became a ftftwtaoftp , and there was a 
bounce in the contribution from non- 
life insurance. Coupled with a robust 
dividend increase, this was enough to 
counter the drop in new business and 
profits in the core UK life business, 
but not to eliminate doubts about the 
group’s position in the medium term. 

Despite a battery of diversification 
initiatives, there is no avoiding the 



THIS ANNOUNCEMENT APPEARS AS A MATTER OF RECORD ONLY 

AUGUST 1994 


IM 

PI LLAR 




£90 million new capital 
raised through flotation on 
the London Stock Exchange 


Electra Kingsway Limited 
participated in the establishment of 
Pillar Property Investments PLC in February 1991 
and arranged the initial equity facilities 
which included funds under its management 


ELECTRA 


electra kingsway limited 

65 KINGSWAY, LONDON WC2B 6QT TELEPHONE: 071 831 6464 FAX: 071 404 5388 
A MEMBER OF IMRO 


Prudential's dependence on the domes* 
tic market, which Is facing a plethora 
of problems. Bad publicity is inevita- 
ble as the deadline for the new com- 
mission disclosure regime approaches 
and the Securities and Investment 
Board puts the finishing touches to 
compensation plans for poor pension 
transfer advice. The new disclosure 
rules will only exacerbate the lack of 
under lying growth in the life insur- 
ance market Margins to tra d i t i o nal 
life products are being squeezed, leav- 
ing companies such as the Pru to 
rtraaft lower margin investment busi- 
ness such as Peps. 

The shares, driven down by these 
mwwfafatfag during the course of the 
year, now yield a third more than the 
market average. Tins provides sup- 
port but only so long as investors do 
not start to question the Pro’s capac- 
ity to generate above average dividend 
increases to the medium term. 

Forte 

Air France’s decision to sell Forte 
its Meridien stake was a welcome vic- 
tory for minority shareholders. 
Whether it sets a precedent for other 
French companies is more doubtful. If { 
Air France's board bad picked Accor's 
lower bid. it would have been against 
the advice of the European Commis- 
sion and M&idien's own management 
Even so, it was a close calL 

As for Forte, this deal was strategi- 
cally far more important than the 
Savoy imbroglio. Before Mferidien, 
Forte only really fulfilled its slogan 
"Host to the world” to the UK. It is 
now reinforcing its international pres- 
ence with M&ridien’s 54 hotels to 34 
countries. The deal also allows Forte 
to move upmarket without investing 
substantial sums in brinks and mortar. 
That reduces Forte’s relative exposure 
to the property rollercoaster. 

Although the acquisition makes 
strategic sense. Forte could be critic- 
ised for overpaying. It would have 
been easy fra the group to succumb to 
that temptation after being outbid for 
Ciga. The trouble for outsiders is that 
M&ridien's toner workings remain 
obscure. Forte estimates the deal will 
dilute earnings by about 5 percentage 
points for the first year and be neutral 
after that Nevertheless, the prospect 
of an eventual wl p of- its «t»icp in 
Gardner Merchant means Forte can 
afford Mferidien without recourse to a 
rights issue. If the deal allows Forte to 
escape from the international hote- 
liers’ second division, the sum of 
£2S0m will be a small price to pay. 





15 


WORLD CLASS 
WORLD-WIDE. 

§§ Perkins 

Diesel engines from 5-2500 hhp. 

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FINANCIAL TIMES 


COMPANIES & MARKETS 


Thursday September 15 1994 


CREATING THE WORLD’S 
MOST LUXURIOUS CLOTHS 




LANGHOLM SCOTLAND. DC I 3 OSN 
TEL: Q3H73 BOS I I FAX: 03873 90720 




IN BRIEF 


BK Vision attacks 
^ banks’ profit fall 

• company controlled by 

bailing group, has strong 

MSpjSta^iSS^ Pro slump ^ SwitZErlaB ' i ' s 

'■'y'B&F takes stake in Swedish generator 

: EsSridte de France, the French state utility, has 
:• .. .MfOMted the purchase or a 5.5 per cent stake In 

- ’ 016 second Jar e^st Swedish electricity pro- 

- dnear. Page 16 

; ¥oho wateanws new break-up deal 

V Volvo, the Swedish motor manufacturer, said yes- 
-v tertoy.it bad won a much better divorce deal from 
> Renault than it initially negotiated. Page 16 

■ : PTfrOffedng attracts S1w4tm 

■ ; Bids from international investors for a placing of 
5m vouchers in the state-run Pakistan Teleoommu- 
£ - cation Corp (PTC) reached S1.4bn yesteiday, joint 
global coordinator Jardine Fleming said. Page 18 

- Jangne motors aim moves ahead 

& todine Intematioiial Motors Holdings, the Hong 
j^Kbng.b ased ca r distribution arm of the Jardine 
Graup.yesterda y reported a 6 per cent increase in 
net profits For the six months to June. Page 18 

L Cott wams on margins despite gain 

■(. fOott Corporation, the fast-growing fL-martian sup- 
' : /§5er of private-label beverages, lifted second-quar- 
y ■ s ter earnings by 50 per cent, but confirmed that 
i j-j intensifying competition was eroding marg -hm in 
some important markets. Page 17 

JOZW move brings DTB and Mattf closer 

i French and German futures and options 
banges came one step closer yesterday when a 
bask announced it was ready to trade interest 
r^^lrate futures across a link jointly developed by the 
i-L^TAtwo markets. Page 19 


■plwHi triua on big wheat producers 

:?L> The Indian government's decision last week to abol- 
Jshthe minimum export price for durum wheat is 
^?r'T«pected to boost exports and allow Indian wheat 
•ADtemers to compete with big producers such as the 
*%!!$, Canada and Australia. Page 26 

;^jRprm«es seek to reduce set-aside 

A vTtoltaropean farmers’ organisation. Copa, has 
, t Olfed for a reduction in the amount of cereals and 
£ V dttSMd land set aside or left to lie fallow in the 
TS94-36 growing season under a European Union 
ai*acte.Pagu26 

ABfwts advances after re st r uc t u ring 

Asawated British Ports continued to benefit from 
.L^^r.thiripidfcal restructuring of its port operations, with 
j .- vj- foxahte profits rising 29 per cent on a ? per cent 
b:\'X~iocn§mriB port revenues. Page 21 

growth 

■ • Polypipe, the UK manufacturer of plastic pipes and 
^ fittings ahhflQiired results which continue its 
V 1 unbroken run of successive annual profit increases 
ancc its 1985 flotation. Page 21 

Companie s In lMs leeue 

AB Ports . 

Accor 


MUhony Bad 
Aigsnt- 
Artan 

*M#»- . 
AuittWaModta 
BGB . . . 

BKVhfan: 

BZW ■ 

Ballot Nova Sou 
Barfto Pacific TOr 
Bed Atlantic . 

cwnnam 
British Petroieum 
CaW 
Catar 
Camas . 

Conning (W) 

Capital industries 
Cariton Commune 
CosSo Comma 
Cooperative Bank 
Compel 
Codecs 
Con Corp 
Country Casuals 
Courtaukis . 

Credit Lyonnais 
OaSmter-Genz 
Dcvro 
ECC 

Elect de Franco 
Era 
Exxon 

F&C High Income 
Fidefity 

Roming High Incor 
Fleming Overseas 
Forte 
G£ 

GenlfSH) 

Market Statistics 


tAmuti rewire service 2W9 
Bendmsric Govt hands 19 

Bon) fuMes and cptxra 19 
Bend prews w«l ytekte 1S 
Qcmtnodttles pnrae 26 

DtottSewts annaffleed. UK . 2D 
BUS twrentt rates 32 

Eusund price: *9 

Brad maresi inwees « 

FT-A Wort) Wkr; Backjago 
FT GoM tones mde* Backpage 
FT.TSMA Ml bond sue is 

FT-SE Actuals W** 27 


SI 

Glaxo 

22 

16. 15 

HJ Heinz ' 

17 

22 

Holiday Inn 

22 

21 

ktchcao* 

27 

SI 

Ml BwtoctHiotogy 

21 

21 

James Cape) 

18 

18 

Jwdte M Motors 

18 

IB 

KLM 

15 

15 

Laban 

17 

17 

Lambert Howarth 

21 

15 

Lawno 

20 

IT 

Lincat 

21 

IB 

London Forfaiting 

21 

17 

Lucas industries 

9 

30 

27 

21 

22 

20 

so 

21 

27 

21 

Middlesex Hohflngs 

Hftanhwrhl 

WKSUOSll 

NBC 

NonKJB 

Northwest Aifflnes 
Nynex 

PTC 

Polypipe 

Powergen 

Prudential 

21 

18 

17 

15 

15 

17 

18 
21 
22 

27,18 

SO 

Renault 

18 

20 

RosMf 

21 

21 

Rugby Estates 

21 

17 

S China Morning Post 

18 

20 

Sage 

21 

21 

Savoy 

15.22 

22 

Sneema 

16 

18 

South Wotes Electric 

21 

20 

Sprint 

17 

2 a ib 

Stat-Ptus 

21 

16 

Stratton (Hon) 

21 

21 

Suez 

16 

17 

Sunset Hotidsys 

9 

SI 

Try 

21 

22 

UBS 

17 

21 

Vardon 

22 

21 

Volvo 

IB 

15 

Waft Disney 

17 

16 

Watergtade inti 

22 

21 

WOodchaster Jnv 

20 


ForelflO eraftffligfl 32 

Gifts prices 19 

Lifts equity options Ba ck page 
London share sevfcs 2829 

London trad options Backpage 
Managed funds service 30-32 

Money rraricsts 32 

New M bond issues 19 

Recent tones. UK 27 

snon-tenu hit rates 32 

interest rates 18 

World Stock Mates S3 


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NordLB buys 10% stake in Berlin bank 


By Judy Dampsoy ‘m Ber6n 

Norddeutsche Landesbank- 

Girozentrale will pay DMIbn 
(S645m) for a 10 per cent stake in 
Banlcgesellschaft Berlin in one of 
the largest German banking 
deals la recent years. 

BGB yesterday confirmed that 
the state of Berlin will sell a 10 
per cent holding - part of its 67.7 
per cent controlling stake - to 
Hanover-based NordLB. The 


links ar ising from the deal will 
also allow BGB to expand its 
presence in northern and north 
eastern Germany. 

“This is a strategic decision in 
which BGB will gain access to 
more retail hanking in the north 
of Germany, while NordLB will 
gain important access to the Ger- 
man capital, particularly as n»s 
part of Germany begins to 
expand, and to our international 
markets," BGB said. 


NordLB is one of Germany's 
largest public sector regional 
banks. Last year its operating 
profits, after risk provisions, 
totalled DM400.4m, a sharp rise 
over 1992, in which operating 
profits totalled DM145 An. 

The deal, which could be 
approved as early as September 
22 when NordLB's supervisory 
board meets, coincides with a 
period of structural change in 
Berlin’s banking establishment 


BGB was created as a holding 
and investment banking com- 
pany in January following the 
merger of three banking institu- 
tions - Berliner Rqp Tr, Landes- 
bank Berlin, which owns the sav- 
ing banks, and Berliner 

Hypotheken-und PfaTiribripflMnic t 
or Berlin Hyp, a property financ- 
ing institution. 

The merger brought together 
for the first time in German 
banking the private and public 


sectors. Apart from Berlin's 67.7 
per cent stake, 10 per cent is held 
by Gothaer Insurance Group and 
the remaining 22J3 per cent by 
minority shareholders. 

BGB's total equity capital is 
DM7.8bn and its assets total 
DM220bn. In its first Interim 
results, it reported consolidated 
operating profits of DM734m. 
After taking into account risk 
provisions totalling DM326m, 
operating profits came out at 


DM408m. 

Bank officials said the state 
was not, as yet, planning to relin- 
quish its majority status. BGB 
may retain the right to buy back 
half of NordLB's 10 per cent 
stake on condition that those 
shares were sold on to an inter- 
national bank. "It is too early to 
say exactly what all the condi- 
tions are. But we are close to a 
mutually accepted arrangement," 
BGB said. 


KLM ups 
its stake 
to 25 % in 
Northwest 
Airlines 


By NQdki Taft in Sydney and 
Richard Tomkins in New York 

KLM Royal Dutch Airlines 
yesterday agreed to Increase its 
stake tn Northwest Airlines, the 
fourth largest US carrier, from 
20 per cent to 25 per cent by 
buying a 5 per cent stake in the 
airline held by Foster’s Brewing, 
the Australian beer group. 

Tbe ASMftn (US$180m) share 
pnrehase will take SIM’s bold- 
ing in Northwest to the maxi- 
mum level allowed. Under US 
federal law, foreign companies 
are not permitted to own more 
than 25 per cent of the voting 
stock of US airlines. 

Foster's decision to sell its 
stake Is in line with its policy of 
disposing of non-core assets to 
rednee debts. The company’s 
investment in Northwest repre- 
sented the largest remaining 
non-core asset tn its 
portfolio. 

KLM said it bad taken the 
opportunity to buy the stake 
because the move demonstrated 
its commitment to its alliance 
with Northwest The two carri- 
ers* combined operations fink 
170 North American cities 
with more than 85 cities in 
Europe, Africa and the Middle 
East 

Northwest welcomed the move, 
saying it reflected KLM*s “strong 
belief in Northwest’s prospects 
for the future 1 *. 

KLM’s move comes at a time 
when other cross-border airline 
alliances, such as that between 
British Airways and USAir, have 
proved troublesome. But KLM 
appears to have struck relatively 
lucky with its US investment: 
Northwest has achieved a return 
to profitability after coming 
close to bankrnptcy last 
year. 

Foster’s acquired its stake in 
Northwest in 1989 when the US 
carrier was the subject of an 
US$3.65 tm leveraged buy-out by 
an investment consortium put 
together by Mr Alfred Cbecchi. a 
former Disney executive, and his 
partner Mr Gary Wilson. 

At that stage, Foster’s - in the 
form of Hs predecessor company, 
Elders IXL - was run by Mr 
John Elliott, the Melbourne- 
based businessman. Through Its 
finance arm, Elders agreed to 
invest in the Cbecchi consor- 
tium, and was given board repre- 
sentation at Northwest when the 
bid was successful. Asked about 
Elders' involvement at the time, 
Mr Cbecchi said that he and Mr 
Elliott had become “close per- 
sonal friends’'. 

KLM was also a member of the 
Cbecchi investment group. 

Foster's said it would make an 
after-tax profit of around AS95m 
on the share sale, after costs. Zt 
had not written down the value 
of its Northwest bolding, despite 
the airline’s serious financial 
problems in the early-1990s. 


Forte’s control of French chain propels it to new markets, writes Michael Skapinker 


T hroughout thia week, the 
French and UK press con- 
fidently predicted that 
Forte had won control of Meri- 
dien, the international hotel 
chain owned by Air France. 

The only doubter was Forte 
itself The UK hotel and restau- 
rants group's caution partly 
reflected its tear of the formida- 
ble lobbying power of Accor, its 
French competitor and rival bid- 
der for Meridiem Earlier this 
year. Accor delayed a decision by 
Air France to sell the chain to 
Forte, arguing that it should 
remain in French hands. 

Forte also did not want to be 
seen as having foiled again. Bar- 
ber this year it failed to win Ciga, 
the Italian luxury hotel group, 
which went to ITT Sheraton of 
the US. 

This week. Forte's 13-year cam- 
paign to take full control of 
Savoy Hotel, the UK luxury hotel 
group, was thwarted by the 
Savoy's two-tier share structure. 
Mr Rocco Forte, Forte chairman, 
did. however, win the right to be 
represented on a three-member 
chairman's committee. 

B y contrast, yesterday’s 
announcement that Forte 
is to acquire Mericfien is a 
comprehensive victory. By taking 
over Meridien's 54 hotels, Forte 
has doubled its international 
portfolio of first-class establish- 
ments. 

More important, it has taken 
Forte into the Asia and Pacific 
regions, the world's fastest-grow- 
ing business and tourist markets, 
where Forte currently has no 
hotels. Hotels in Tokyo. Singa- 
pore, Jakarta. Bangkok, New 
Delhi and Melbourne now join 
Forte's portfolio and other impor- 
tant markets, such as North 
America and the Middle East, are 
strengthened. 

Business travellers who use a 
hotel chain in one part of the 
world increasingly want to use it 
in another. Winning Meridien 
was crucial if Forte was to com- 
pete effectively in the business 
market. 

Getting overall control of the 
Savoy group might have been 
more emotionally satisfying for 
Forte, but from a commercial 


Post-Meridien time begins 


Hotels 








B Restaurants 


UK properties ' 

1W 



ImEBnm 

m 



mm 

EH m 



I 


*■ 











: UK properties 

Units 

Exclusive 

'■ ■ 8 

• 758 








3 

758 

1 Little Chet 

329 

Grand 

.15 

1,966 

1 

.186 

\ 



i 


16 

2.152 

‘ Happy Ester 

S 3 

Crest 

-. 80 

<MM 8 







30 

8.048 

Cafe Royal 

1 

Posthouse 

- 61 

. 7,085 



: 





61 

7,085 

, Welcome Break Services 26 

Heritage 

32 ' 

. 4,250 

1 

35 

, 





93 

4.285 

Units within service areas 123 

World of FOrtS 

32 

2,638 



i 





32 

2.638 

: Others 

121 

Travelodge i 

100 

3,698 



1 





• 100 

3.698 



Welcome lodges 

2 

195 



r 


.v!„. 1 


j 

2 

1 * 

1 Overseas properties 

Distinctive Restaurant Hotels 

. 5 

■ 70 





•r ’ " 1 

* 


5 

70 



Meridten 

1 - 

263 



-1 
• V 
■ 


‘ •• 



1 

263 

, Ireland 

2 


341 

29 JV 71 

2 

221 

O 

0 

0 

o ; 

343 

30,192 

. Germany 

3 

Overseas properties 







•f* •( 



* 


' France 

42 






I 


“.J* 


i 



; Spain 

2 

Exclusive 

9 

1,573 



i. 




■ 

9 

1,573 



Grand 

9 

1,710 

5 

1.637 





14 

3,347 



Crest 

e 

1,216 



< 





6 

1.218 

•s 


Heritage 

' 2 . 

■ m 


f - 3 S 0 

' j 1 


’•*. i 

! • .!• 

’• • i 

2 

118 



Resorts 

12 ' 

ZAO 4 

; "i 

* 

■ " 

; 1 ; j 

; 

• ! 

13 

2.844 



AH 

i7 

2J074 


360 

i 

{ 


vC | 

i 


18 

2234 

i 


Travelodge Ireland 

2 

80 


•: •' 

■ V 


1 ' 

• i 

Z 

80 

‘ t .y~ 

Sagertra 

.5 

284 


t\ „ 

i 


i 

j 

t 

1 

S 

234 

^ *' ’ 


MecKSen 

8 


l 34 

•; 

1 



1 

i 


40 

13,463 


.■“■ 23 ^ 


68 

91547 

. 41 

2,147 

j 

o 

0 ! 

t o 

o i 

109 

25,157 

’ ~ ^ 

■ . .y 

■%. ;KV.Vv* 

US properties 




i 



i 

1 

t 



— 

. k<-; . 

Exclusive l 

3 

701 

t 

235 

J 

•’ 

• . i 

1 

i . . 


4 

936 


Trawetodge > 

30 

4,468 

1 

306 

s 

i 

254 

19,962 * 

88 

5,093 

374 

29237 

- ' ' 


Plaza at the Americas 

1 

399 




f 

j 

13 

509 

1 

3 % 



Mon Travelodge 







j 

9 

496 

13 

509 


Thrifflodgs 

7 

402 




11 

588 


i 

27 

1,487 

: S-/V. 

: V- 

. %•?; v. 

Latin America 


l 




6 

589 

, 


6 

569 


Mexico 


I 




2 

121 

1 


2 

121 

', 

IS 

Relax i 


f 

| 




24 

3,872 



24 

3272 

' . " '• 

MerfcSen 1 

3 

1 

| 

10 







13 

4.510 

4 " ’ !•» ; \ * B \ 


44 

SJB60 

12 

541 


297 

25,113 

i HI 

6,096 

464 

42230 

"*■ . - . 


\ 








1 






Total hotel stock 

453 

45.223 

55 

2J0O9 


297 

25,113 

111 

6,098 

916 

97,579 

Total 

732 


point of view, the struggle for 
Meridien was more important 
Forte says the purchase might 
result in an earnings dilution of 5 
per cent in the first year. Mr 
Bruce Jones, an analyst at Smith 
New Court said, however, that he 
thought it could be less, given 
the increase in bookings that 
should result from a larger chain 
Having won his struggle, Mr 
Forte has three questions to 
address. How will he pay for Mer- 
idien, bow will he run it and does 
his group now have the right bal- 
ance of businesses? 

The initial cost will be 
FFrl.OSbn ($206m) for Air 
France's 57 per cent stake in Mer- 
idiem Forte is required to make 


an offer to minority shareholders. 
If they all accept the total price 
would rise to FFrl.Bbn. 

Forte has three options in fund- 
ing the purchase. The first is to 
use existing borrowing facilities. 
Forte has committed but unused 
facilities of E500m ($775m). 

A second option is arranging 
bridging finance until Forte sells 
its 25 per cent stakes in Gardner 
Merchant, the contract catering 
group, and Alpha Airports, the 
airline catering company. Both 
disposals are likely to take place 
during 1995. 

The third option is a rights 
issue. Mr Forte said: “It’s an obvi- 
ous possibility, but it’s not neces- 
sarily the way we will go." 


Successfully managing .Meri- 
dien will not be easy. Last year, 
it recorded a net deficit of 
FFr20.7m. Mr Forte says the 
chain has suffered from the 
uncertainty generated by its sale 
and from its previous status as a 
nationalised industry. It should 
now be able to move forward 
with greater confidence, he says. 

Forte will also have to per- 
suade hotels to stay in the chain. 
Of the 54 acquired, 44 have other 
owners and are managed by Mer- 
idien under management con- 
tract. Mr Forte accepted that 
some contracts might be lost If 
they are, the price Forte pays 
win he reduced. But he added: 
“We’re fairly bullish about our 


position with the owners. One of 
the reasons we managed to offer 
more than Accor was that some 
owners had indicated they would 
leave if Accor won." 

Some have criticised Mr Forte 
for selling the contract and air- 
line catering businesses. Contract 
catering in particular is seen as a 
recession-resistant industry. 

Mr Forte is adamant that his 
group was right to concentrate 
on building up its hotel and res- 
taurant business. “It was the best 
thing we've ever done. We're now 
concentrating on fewer busi- 
nesses. In a service business like 
ours, it's important for the people 
‘ at the top to be close to the 
action." 


T&N obtains option to 
control Kolbenschmidt 


By Kevin Done in London 

T&N, the British automotive 
components and engineering 
group, last night agreed to 
acquire an option to buy a major- 
ity stake in Kolbenschmidt, a 
leading German motor compo- 
nents producer. The complex 
deal, which would give T&N a 
dominant position in the German 
market for some key engine com- 
ponents, must be approved by the 
German cartel authorities. 

Metallgesellschaft, the troubled 
Ge rman mutate mining and engi- 
neering group, is to sell its 47 per 
cent holding in Kolbenschmidt 
Magna International, the Cana- 
dian automotive components 
group, is to reduce its stake in 
Kolbenschmidt from 12£ to 2£ 
per cent In an initial step, Com- 
merzbank is to take over a 34.99 


per' cent holding in Kolbensch- 
midt. and German institutional 
investors will take over 32 per 
cent Metallgese Uschaft said the 
deal meant its disposal pro- 
gramme was almost complete. 

T&N has acquired an option on 
the Commerzbank-held shares 
and on a stake of 25.01 per cent to 
be held by the institutions. The 
option must be exercised by 
March 3L 1995. T&N could also 
take over the remaining 2.5 per 
cent still held by Magna, giving it 
an option to acquire a total stake 
of 52j per cent 

Last year T&N bought German- 
based Goetze. Europe's largest 
producer in Europe of piston 
rings. Kolbenschmidt, with sales 
of DMl^9bn (Si.Q3bn) in 1992^3, 
is a leading maker of engine pis- 
tons and blocks, roller bearings 
and pumps. 


Deputy chief to leave BZW 


By John Gapper, Banking 
Editor, in London 

Barclays de Zoete Wedd, the 
investment banking arm of Bar- 
days, Britain's largest bank, yes- 
terday signalled a move towards 
a new generation of management 
with an announcement to staff 
that Mr John Spencer, its 50-year- 
old deputy chief executive, is to 
leave at the end of the year. 

He is to be succeeded as chief 
executive to BZWs markets divi- 
sion by Mr Sam Marrone, an 
American who is currently chief 
executive of BZW Securities in 
New York. 

The move follows a request 
from Mr Martin Taylor, Barclays* 
chief executive, for BZW to estab- 
lish a successor to Mr David 
Band. BZW's chief executive 
Since 1988. Although Mr Band, 
who is 51, has no immediate plan 
to move, it is thought that he 
may do so in two or three years. 


Mr Band could, then become 
chairman of BZW, a post cur- 
rently held by Sir Peter Middle- 
ton, who is also deputy chairman 
of Barclays. There was specula- 
tion over whether Sir Peter 
would remain at the bank after 
Mr Taylor was appointed last 
year, but Mr Taylor is believed to 
regard him highly. 

BZW said Mr Spencer had 
decided to leave of his own 
accord and that the parting was 
“entirely amicable*. He has 
worked at Barclays for 24 years, 
recently bringing the bank’s for- 
eign exchange and money mar- 
kets operations into BZW. and 
developing new risk management 
systems for trading. 

The move leaves no elear suc- 
cessor to Mr Band, but the ques- 
tion could be resolved with the 
appointment of a new deputy 
chief executive later this year. 

BZW told staff that Mr Mar- 
rone. a 51-year-old former US 


marine, is to move to London at 
the end of the year. As well as 
heading the markets division, he 
will share responsibility for the 
debt capital markets operation 
with Mr Graham Pimlott. 

Mr Dennis Rooke, deputy chief 
executive of the markets division 
and head of global money mar- 
kets and foreign exchange, will 
take on liaison responsibility for 
the Middle East Mr Ben Grigsby, 
joint deputy chief executive of 
the markets division, will suc- 
ceed Mr Marrone in New York. 

Some directors had regarded 
Mr John Vartey, formerly deputy 
chief executive of the equities 
division, as a candidate to suc- 
ceed ilr Band in the longer term. 
But Mr Varley left BZW earlier 
this year for personal reasons. 

Mr Pimlott, to whom Mr Taylor 
has given responsibility for large 
corporate lending as well as mer- 
chant banking would be a candi- 
date to succeed Mr Band. 


S 2 2 S3 S a fi S K ?5 2 ■* :2 A 

Resource, Experience 
and Capability 


JK 




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June IW 

Management Bujr-our of 


isrt-WNjsrw u""^ ■■ »v:x. i • ■w'rc;:-.::- 



Pascon 


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Senior Debr 

plus Working Capital Facilities 

Arranged & Underwritten 
NiiWcst Markets, Acquisition Finance 


JoJ> IW 

Management Buy-out of 


/evingtc) 


Senior Debt 

plus Working Capital Facifiact 

AmDg.'dS JrrialJ'i Ural n» Hum In 

Nat West Markets, Acquisition Finance 


July l«4 


SK-pirmbcr IV94 

Management Buy- in /Buy -nut 


Management Buy-out with 

of 


Employee Participation of 

H DOLLOND& pi Q 
■ A i T C H 1 S 0 N U SB 


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Centre West London Buses limited 

Senior Debt 


Senior Debt 

plus Working Capital Facilities 


plus Winking Capital Facilities 

Vram-d & Uiximnillcn hv 


ArranpuJ & Uiukn»nJKm fu 

Nat West Markets, Acquisition Finance 


Nat West Markets, Acquisition R nance 


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16 


FINANCIAL TIMES THURSDAY SEPTEMBER 15 1994 


★ 


INTERNATIONAL COMPANIES AND FINANCE 


US pension funds increase 
overseas investment by 9% 


Divorce sends European automotive groups along divergent routes 

Longuet looks to Volvo welcomes 
boost Renault sale revised deal 


By Norma Cohen in London 

US pension funds have further 
expanded their investments in 
non-domestic securities in the 
first half of 1994, allocating 
S22bn to mandates to be invest- 
ed outside the US. a rise of 9 
per cent from the end of 1993. 

InterSec Research Corpora- 
tion, a US-based, investment 
consulting firm, said that 
SO per cent of the cash was 
invested in non-US equities, 
with the remainder In fixed 
interest. 

Cash flow into equities in the 


By John Ridding in Pads 

Genera! Electric would be keen 
to invest in Snecma, the 
French state-owned aero-en- 
gine manufacturer in the event 
of its privatisation, according 
to the head of the US group's 
aircraft engines division. 

"We would like to participate 
in any operation which would 
support the future of our 
French partner," Mr Eugene 
Murphy said. "IT there is an 


By Andrew Bokjer in London 

English China Clays, the UK 
minerals and chemicals group, 
said yesterday that it was 
prewired to make acquisitions 
worth up to SI 00m to build 
up its speciality chemicals 
business. 

Mr Andrew Teare. chief exec- 
utive. said: “That Is the next 
stage for us - to start an acqui- 
sition build-up as well as 
organic growth.” 

The group, which in June 
demerged Camas, its construc- 
tion materials arm, said it was 
beginning to see scope for price 
increases in the buoyant Euro- 
pean paper market 

Mr Teare said: “We are see- 
ing our customer base starting 
t» get into a more healthy 
financial slate. We have had to 
restrain our desire for price 


first half of 1994 totalled CMm. 
about $Sba mare than in the 
same period a year ago. How- 
ever, it was S5bn below the 
cash flow which poured into 
foreign equities in the second 
half of 1993. 

The move abroad is part of a 
trend which became visible by 
the end of 1993 when it was 
calculated that the value of US 
pension funds’ assets abroad 
rose by 69 per cent to $260bn 
from $i56bn at the end of 1992. 
As of June 1994, US pension 
fund assets invested abroad 
totalled S2S4bn. 


opening of Snecma’s capital we 
would like to take part.” 

The US and French groups 
work closely in the develop- 
ment and marketing of aircraft 
engines and are associates in 
CFM International, a joint 
engine manufacturing com- 
pany. 

Mr Murphy said that 
co-operation between the two 
companies was becoming ever 
closer but rejected a scenario 
in which they would divide 


increases. We have shared the 
pain, now we should share the 
gain." 

ECC reported a 30 per cent 
increase in pre-tax profits, to 
£52 2m <S80.9m) from £402m in 
the six months to June 30, 
including a £2 1.6m contribu- 
tion from land sales by the 
group's construction division. 
Camas reported increased pre- 
tax profits yesterday, up from 
£3.4m to £42m. 

The group's speciality miner- 
als business, ECC International 
(ECCH. improved operating 
profits in Europe, but this was 
offset by declines in the Ameri- 
cas and the Pacific region. 

ECCI's sales of European- 
sourced minerals increased by 
6 per cent to £217m. with 
strong growth in both the 
paper and ceramics markets, 
aided by an increase in sales of 


InterSec calculated that 
about 7 per cent of US pension, 
assets were invested abroad 
at the end of last year, com- 
pared with 5 per cent a year 
earlier. 

US pension fluids historically 
have been reluctant to invest 
outside the country. Five years 
ago, only 3 per cent of their 
assets were non-US. 

Of the funds invested outside 
the US in 1994, $20bn repre- 
sents net new cash allocated to 
the sector while only $2bn rep- 
resents an increase in assets 
under 


the production of small and 
large aircraft engines between 
them. 

Snecma is one of the 21 com- 
panies on the French govern- 
ment's privatisation list. But 
the group is not expected to be 
sold in the near future since 
the government has already 
launched plans for the issues 
of shares in other companies 
including Renault, the vehicle 
group, and Assurances Gener- 
al es de‘ France, the insurer. 


US-sourced clays In Europe. 
Operating profit rose by 15 per 
cent to £22. 8m and underlying 
trading margins improved 
from 9.7 to 13.1 per cent 

This was achieved in spite of 
£5.7m of reorganisation costs. 
Mr Tears said more than 300 
jobs bad been shed in the first 
half and 4S6 since June last 
year - representing 11 per cent 
of the group's wo deforce. 

In ECCI’s Americas and 
Pacific division, sales increased 
by 3 per cent to $217. 1m, hot 
operating profit fell 15 per cent 
to $232 m. Margins fell from 13 
to 10.7 per cent. It blamed 
lower pricing to the paper 
industry, higher distribution 
costs for Georgia clays and 
lower plant utilisation for 
expanded US clay operations. 
Details and Camas results. 
Page 21 i 


EdF takes 
stake in 
Swedish 
generator 

By DavM Buchan in Paris 

Electricity de France, the 
French state utility, has nego- 
tiated the purchase of a 5.5 per 
cent stake in Sydteraft Swe- 
den's second largest electricity 
producer. 

The deal forms part of EdFs 
strategy of making foreign 
acquisitions as well as expand- 
ing Its sales abroad. 

EdF, the world’s largest elec- 
tricity producer, said it would 
pay SKrl.lbn ($l50m) for the 
stake, which would give it 
9 per cent of the voting rights 
in Sydkraft. 

Like EdF, Sydkraft is an 
integrated generator and dis- 
tributor of electricity. It serves 
l.2m customers in southern 
Sweden, and last year made a 
net profit equivalent to 
FFrl.5bn (3270m) on turnover 
worth some FFriftm, EdF said. 

Sydkraffs shareholders are 
mainly Swedish, in particular 
the city of Malmo, which led 
the negotiations with EdF. 
However, Preusseuelektra, a 
subsidiary of Veba, the Ger- 
man energy conglomerate, 
already has a larger stake in 
Sydkraft than the one EdF 
plans to take. 

EdF is stepping up its inter- 
national acquisitions. Two 
years ago it bought into an 
Argentine electrfcfry distribu- 
tor and last year it took stakes 
tn Spanish and Portuguese 
power generating companies. 

However, for the moment 
the French government has no 
intention of opening the 
French utility’s capital to out- 
siders. 

Accor wants SGB 
to increase stake 

Accor would like Soctete 
GdnGrale de Belgique, a unit of 
Compagnie de Suez, to boost 
its stake in the hotel group to 
become its main shareholder. 1 
Mr Paul Dubrule, Accor co- • 
chairman said, Reuter reports i 
from Paris. i 

“We would like SGB to have | 
this position but if they do not 
want to increase their stake, 
we will seek another partner,” 
be said. SGB has 12.4 per cent 
of Accor. 


By John Ridding hi Paris 

The planned notation erf shares 
in Renault should be followed 
by further reductions in the 
government's holding in the 
French automotive group, 
according to Mr Gdrard Lon- 
gue t, industry minister. 

Speaking after the govern- 
ment announced plans to sell a 
stake of about 28 per emit in 
the car and truck maker, Mr 
Longuet told Le Figaro news- 
paper “There Is no particular 
reason for the state to remain 
the majority shareholder in the 
long term.” He described the 
planned flotation as a “step, 
not a completion”. 

The political sensitivity of 
Renault, a former trade union 
stronghold, prompted the 
centre-right government of 
prime minis ter Mr Edouard 
B ahad ur to limit the scale of 
its issue of Renault shares and 
retain a stake of at least 51 per 
cent. 

Volvo, the Swedish motor 
group which holds 20 per cent 
of Renault’s shares, will sell a 
stake of between 8 and 12 per 
cent as part of the operation. 
The move is part of an unrav- 
elling of an alliance between 
the two companies following 
the collapse of merger plans at 
the end of last year. 

The French industry minis- 
ter said Renault would need to 
find industrial partners before 
full privatisation. Describing a 
consolidation of the European 


By AUson Smith in London 

Prudential Corporation, the 
UK's largest life Insurer, 
reported a 16 per cent rise to 
£280m (5434m) in first-half pre- 
tax profits, but profits from the 
UK life business fell 

The drop in profits from the 
UK long-term business, to 
£l32m from £J39m, reflected a 
decline in sales of insurance 
products and the cost to share- 
holders of financing new unit- 
linked business. 

It took account of provision 
for potential reductions In 
bonuses on its with-profits poli- 
cies which are not set until the 


automotive industry, he said 
Renault would play a part In 
the reshaping of the sector. 
Shareholders in an ultimate 
privatisation would need to 
know what they were buying 
into, he said. Mr Longuet 
declined, however, to comment 
on possible partners. 

He said the Renault sell-off 
should take place as quickly as 
possible, reinforcing specula- 
tion that the operation will be 
launched at the end of October 
or early November. He indi- 
cated that the government had 
valued the company at 
between FFr40bn and FFr44bn 
($7.5bn-$8-3bn). at the lower 
end of analysts’ calculations. 

Regarding other issues in the 
government's privatisation 
programme. Mr Longuet said 
that Groupe Bull, the computer 
manufacturer, was well- 
prepared for sale. He hoped the 
state would be able to reduce 
its 76 per cant holding in Bull 
before presidential elections, 
scheduled for early 1995. 

French economic officials 
stressed that the partial flota- 
tion of Renault did not derail 
plans to privatise Assurances 
G 6 iterates de France, the 
insurer which has been com- 
peting with the automotive 
group to be the next privatisa- 
tion issue. Mr Edmond Alphan- 
ddry, the economy minister, 
said plans for the AGF sale 
were continuing and that the 
operation would be launched 
as soon as possible. 


year-end in March. Prudential 
and other insurers have cut 
bonus rates in line with lower 
investment returns in recent 
years. 

Mr Mick Newmarch, chief 
executive, said he expected UK 
sales to be subdued in the sec- 
ond halt but said in the longer 
term the need for savings and 
protection, products should 
mean substantial demand. 

The interim dividend was 
raised 9 per cent to 4Jp from 
45p. 

Mr Newmarch highlighted 
two areas of regulatory activ- 
ity. The first was the report 
from regulators, due next 


By Hugh Camegy 
m Stockholm 

Volvo, the Swedish motor 
manufacturer, said yesterday It 
had won a much better divorce 
deal from Renault than it ini- 
tially negotiated. 

The terms contained tn the 
French government’s plan for 
the partial privatisation of 
Renault announced on Tues- 
day put a higher price on Vol- 
vo's 20 per cent holding in Ren- 
ault than previously agreed. 
They also give Volvo greater 
freedom over when it sells out 

“This is a good deal for 
Volvo,” the company said. The 
deal provides for the unwind- 
ing of almost all the cross- 
shareholdings left over follow- 
ing the collapse last December 
of the two groups’ plans to 
merge. In particular, it allows 
for Volvo to take back full con- 
trol of its highly-profitable 
truck division. - 

In February, Volvo agreed to 
swap a 32 per cent stake in the 
Renault parent for the 45 per 
cent share in Volvo trucks held 
by Renault, if the French com- 
pany was privatised by Decem- 
ber. The deal was worth 
FFr-L5bn ($849m), Implying a 
total valuation of Renault of 
FFriftabn. 

This week, the terms were 
changed to allow Volvo to buy 
back the Renault share of its 
truck division for 5 per cent of 
Renault - valued at FFrSLL2bn 
- plus FFr238tm in cash. This 


mouth, cm compensating cus- 
tomers who have suffered from 
poor advice to leave occupa- 
tional pension schemes. The 
second means that from the 
start of next year life insurers 
have to volunteer more infor- 
mation to customers about pol- 
icies and charges. 

Prudential’s pension transfer 
sales are being informally 
investigated by Lautro, the reg- 
ulator for the life insurance 
industry. The inquiry began in 
April, and could last another 
couple of months. Prudential 
said it has acted properly on 
pension transfers and has con- 
ducted its sales activities 


implies a total valuation of 
Renault of FFW2 Jhn. 

Volvo, which wants eventu- 
ally to sell out its full 20 per 
cent holding, is also obliged to 
sell a further 3 per cent stake 
in Renault at whatever privati- 
sation price is offered to insti- 
tutional investors. However, 
for the remaining 12 per cent It 
has considerable freedom to 
pick its time and price. 

It has the option to sell up to 
a further 4 per cent at the insti- 
tutional offer price at the time 
of privatisation. It has under- 
taken to retain its residual 8 
per cent for a period yet to be 
stipulated, but which will not 
be longer than six months 
after privatisation. Within that 
period, however, it will be free 
to sell when it feels the price is 
right 

“It provides us with the 
opportunity to benefit from a 
possible value increase in Ren- 
ault,” said Mr Sdren Gyll, the 
chief executive. 

Under the original divorce 
terms, Volvo has been able to 
treat the truck division as 
wholly owned, so benefiting 
from resurgent profits now 
accruing in both the truck and 
car divisions. However, it was 
anxi ous to regain foil control 
as part of its new strategy, 
adopted after the merger col- 
lapse. to- concentrate on core 
car and truck operations. 

It has meanwhile begun a 
programme to sell SKr40bn of 
noncore assets. 


within regulatory rules. 

Pre-tax profits from Jackson 
National Life, Prudential's US 
subsidiary, rose to £36m from 
£31m, while total profits were 
helped by £17m from other 
international business, com- 
pared with a £6m loss last 
year. This profit included £5m 
for the sale of Prudential’s 
Irish subsidiary to the Irish 
Permanent Building Society. 

Pre-tax profits from general 
insurance businesses - UK 
domestic and motor insurance 
and Mercantile and General 
Reinsurance - rose sharply to 
£53m from £18m. 

Lex. Page 14 


General Electric keen to take 
holding in Snecma on sell-off 


ECC plans $100m acquisitions 


Prudential rises 16% despite fall in UK life 


M of these secunties having been sold, this advwtisament appears as a matter of record only. 

Corporacion GEO, S.A. de C.V. 

(Organized under the laws of the United Mexican States) 

$63,230,000 
Global Equity Offering 

1,806,938 American Depositary Shares 

Representing 7,227,752 Series B Shares 

722,775 Global Depositary Shares 

Representing 2,891 ,100 Series B Shares 

and 

4,336,650 Series B Shares 


Global Coordinator 

Goldman, Sachs & Co. 


722,775 Global Depositary Shares 

^ potto ct the ctornjn-jsscVeutsktolhcUnMStte and 

Goldman Sachs International 

Baring Brothers & Co., Limited 

Dillon, Read & Co. Inc. 

CB Bancomer Internationa! inc. 


1,806,938 American Depositary Shares 

nzspcin& of Cioo/lcrngiiiasscki * tte Unaxi Status by the undetsisroasnJ foese 
seoMvsorecbQibieterresutepLTsuarittofJLie l-UA under fto Securtcs Ad c-‘ 

Goldman, Sachs & Co. Dillon, Read & Co. Inc. 


4,336,650 Series B Shares 

n» poroen of (ho eflterap was sow n Mexico cy the twJenstjWKl 

Casa de Bolsa Bancomer, SJK. de C.V. 

Grope Flnanetaro Bancomer 

Casa de Bolsa Inverted SAdeC.V. Operadorade Bolsa Serfin, SA de C.V., Casa deBoisa 

Grupo B i mJm lw»W Grope finandero Sertn 


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NOTICE of m 

MORTGAGE MINDING CORPORATION NO. 1 FLC 

Class A-l Mortgage Backed Floating Rate Notes Due March 2020 

NOTICE IS HEREBY GIVEN to Raoken Trustor Company limited (the “Trustee”) and to [be holders of 
the (Haas A-l Mortgage Backed Floating Rate Notea One Marti 2020 (tie “Class A-l Notes”) of Mortgage Funding 
Corporation [Vo. 1 PLC (die “lawer”) that, pursuant to the Trust Deed dated 3 let March, 1988 (the “Trust Deed”), 
between the Issuer and the Trustee, and tbe A&ocy Agreanait dated 31st March, 1988 (lie “Apracy Agreement’’), 
between the lamer and Morgan Guaranty Tnial Company of New York (ibe “Principal faying AgraT) and otters, die 
Issuer baa determined that m accordance with the redonptioa pro virions set oat m the Terms and Conditions of the Class 
A-l Notes, AwilabieCapiial Funds as defined in theTerms and Conditions in the amount of £1 ,500,000 will be utilised 
on 30th September. 1994 (the "Redemption Date”) to redeem a like amount of Gass A-l Notes. The Qass A-l Notes 
aelettcd bjdravnngin lots of£l 00 ^)00for redemption the Redemption Dale ala redemption prke(lhe u Redmpboo 
Price”) equal to their principal amount, together with aoerned interest thereon are as follows: 

OUTSTANDING CLASS A-I NOTES OF £100,000 EACH BEARINC 
THE DISTINCTIVE SERIAL NUMBERS SET OUT BELOW 
Bearer Notre 


135 

1482 


144 

1435 


245 

I486 


336 

(636 


573 

1650 


673 

1747 


875 


1075 


1123 


The Class A-l Nous may be surrendered for redemption at the specified office of any of the Payin' A^nts. 
which are as foQowm 


Morgan Guaranty Trust Company of New York 
Arenac des Am 35, B -1040 Brutnejs 

Morgan Guaranty Treat Company of New York 
55 Exchange Place, Basement A 
New Yoik, New York 10260-0023 
Attn: Corporate Trust Operations 


Morgan Guaranty Treat Company of New York 
PO Box 16L 60 Victoria Embankment 
London EC4Y0JP 

Union de Banquea Suisse* (Luxembourg) S. A 
36-38 Crand-rne 
L-2011 Luxembourg 

In reaped of Bearer data A-l Notes, the Redemption Price will be paid upon presentation and surrender, on 
or after the Redemption Date, of such Notes together with all unmaftcred coupons and talons appertaining 
thereto. Soch payment will be made (i) in sterling at the specified office of the Paying Agent in London or (3) at 
the specified office of any Paying Agent listed above by sterling cheque drawn on, or ol the option of the bolder 
by transfer lo a alerting account maintained by the payee wilh, a Town Oea ring branch of a bank in London. On 
or after the Redemption Date interest shall cease In neeree on the Class A-l Notes which are the subject of this 
Notice of Redemption. 

MORTGAGE FUNDING CORPORATION NO. 1 PLC 

By: Morgan Guaranty Trust Company 
<u Principal Paying Age ni 
Dated: lSlh September, 1994 

NOTICE 

Withholding of 31 % of gross redemption proceeds of any payment made within the United Stales is required by 
the Internal Revenue Code of 1985 and amended by the Energy Policy Act of 1992 nnU« the paying 
agency has ihe correct taxpayer identification number (social sernrity or employer identification number) or 
exemption certificate tf ihe Payee. Please funrish a properly completed Form W-9 or exemption certificate or 
equivalent if presenting your Qaaa A-l Notes to the paying agency's New York Office. 


U.S. £200,000,000 
Midland International 
Financial Services B.V. 

a mwMOtw J me n <Smd 
mflWA 


Guaranteed Floating Rato 
Notas due 1999 


payment of pm#* snd Imarwi w 

N&Uand Bank pic 


Nobee & hereby gton that tor the 
six months Interest Pottxf from 
September 15, 1994 lo Man* 15. 
1995 {181 days! the Note Rate 
has teen determined at 55% per 
annum. The interest payable on 
Iho retevant interest payment date. 
March is, 1095 wffl be U.S. 
$276.53 per U.S. SKMMO nominal 
amount 

fly He an Mattel BatfJUL 
Larisa. ApteM Q 

September 15, 7994 chase 


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ANDOPPOKl l NITIKS IN 
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nWWAI. TIMES 

XimtlH u rt 



FINANCIAL TIMES THURSDAY SEPTEMBER 1 5 1994 


n 


INTERNATIONAL COMPANIES AND FINANCE 


* Swiss investment 
group criticises 
banks’ profit fall 




By Ian Rodger 
In Zurich 

BK Vision, the investment 
company controlled by Mr 
Martin Ebner’s BZ banking 
group, has strongly criticised 
the first-half profit slump of 
Switzerland's large banks. 

in its report to shareholders 
for the eight months to August 
31, BE argues that the volatile 
own-account securities trading 
business is not compatible 
with the traditional and highly 
■profitable services of Swiss 
banks. 

BK Is the largest shareholder 
in Union Bank of Switzerland 
(UBS), holding 7 per cent of the 
capital with a SFrS.lbn 
(Si^dbn) market value. 

UBS, Switzerland’s largest 
bank, last month reported a 28 
per cent slide in first-half net 
income to SFr929m, mainly 
because its profits from trad- 
ing, at SFr493m, were 
SFri.05bn lower than in the 
first half of 1893. 

Credit Suisse and Swiss 
Bank Corporation also suffered 
sharply lower trading profits. 

BK, which earlier this year 
attacked UBS for having too 
large a board of directors, 
called on the banks’ boards 
to make clear their risk poli- 
cies. 

Mr Kurt Schiltknecht, a BE 
director, said there was noth- 
ing intrinsically wrong with 
high earnings volatility, but 
investors needed to know 
where they stood. 

Mr Schiltknecht said Swiss 
hanks had to be active traders 
in support of their large fund 
management businesses for cli- 
ents. 


According to a recent compi- 
lation by Euromoney maga- 
zine, UBS is the third Largest 
fund manager outside the US 
with about $245bn under its 
control. 

However, the question was 
whether the banks should also 
be trying in risky securities 
for their own account. 

UBS said yesterday it was 
not just a fund manager. It 
aimed to be a global financial 
services group, strong in credit 
and trading sectors as weH 

It felt the volatility of its 
trading profits had stayed 
within reasonable levels in the 
past few years, with the excep- 
tion of the first half of 1933, 
when the result was extraordi- 
narily high. 

BK made a SFrllm profit for 
the eight-month period, turn- 
ing round a loss of SFr30.1m 
suffered in the first four 
months. 

Administration expenses 
were virtually nnnhaTig iwrt from 
the first four months. No man- 
agement fee was payable in the 
latest four months because of 
the decline of the marked: value 
of the shares In the portfolio. 

The company charged 
SFr30m against earnings for 
unrealised losses. 

BE reported a SFr76.7m net 
gain on investments in the 
eight months, compared with a 
loss of SFi3.9m in the first four 
months. 

Its holding of Zurich Insur- 
ance was reduced by 65,500 
shares between April and 
August while its holding in 
UBS was unchanged with 18.6 
per cent of the registered 
shares and 3.1 per cent of the 
bearers. 


Speculation mounts 
on Sprint mobile deal 


By Richard Tomkins 

Throe US telephone companies 
yesterday declined to comment 
on a press report that they 
were planning to merge their 
mobile telephone businesses 
into a grouping that would be 
even larger thin -the one being 
formed through AT&T's 
Sl2.8bn takeover of McCaw Cel- 
lular Communications. 

One of the companies. 
Sprint, is a long-distance car- 
rier, and the other two. Bell 
Atlantic and Nynex, are Baby 
Bell regional telephone compa- 
nies, 

According to the Wall Street 
Journal, the three companies 
are close to reaching agree- 
ment on a deal under which 
their cellular telephone busi- 
nesses would be merged and 
marketed under the Sprint 
name. 

The combined operation 
would serve mure than 3m 
existing cellular subscribers 
and almost 76m potential cus- 
tomers. 


Last month AT&T, the 
biggest long distance carrier in 
the US, won federal court 
approval to proceed with a 
takeover of McCaw Cellular 
Communications. 

That deal will produce an 
organisation with slightly 
fewer than 3m existing 
subscribers and fewer than 
74m potential subscribers. 

The regional telephone 
companies are concerned that 
a nationwide cellular service 
sold under the well-known 
AT&T name could lure away 
their local customers. 

Bell Atlantic and Nynex had 
sought to block the AT&T- 
McCaw deal on anti-trust 
grounds, but a federal judge 
this week denied their request 
for an injunction. 

Bell Atlantic and Nynex 
announced earlier this year 
that they bad agreed to merge 
their cellular businesses. 

However, a partnership with 
Sprint would enable them to 
compete much more strongly 
with AT&T-McCaw. 


Wall St cool on NBC talk 


Wall Street reacted coolly to 
press reports yesterday that 
Walt Disney was in talks to 
buy the NBC television net- 
work from General FJectric for 
up to S5bn. writes Tony Jack- 
son in New York. 

GE has been reported in 
recent weeks as talking to vari- 
ous suitors, including Time 
Warner, about the sale of NBC. 
Disnev, in turn, has been 


rumoured to be interested in 
buying a TV network. 

Both companies declined to 
comment yesterday. 

Ms Jessica Reif, an analyst 
with the broking firm Merrill 
Lynch, said: "A lot of this is 
being planted in the press to 
sift out who's a player and who 
isn’t". Disney shares fell $% 
yesterday to 541%, while GE’s 
rose S’* to S50%. 


Heinz 

raises 

quarterly 

dividend 


By Richard Tomkins 
in New York 

BLJ. Heinz, the US food group 
headed by Mr Tony O'Reilly, 
the Irish businessman, lifted 
Its quarterly dividend by 9 per 
cent to 36 cents and is buying 
back a further 10m of its 
shares. 

Heinz's stock price has been 
under a cloud following the 
company's poor financial per- 
formance In the year ending 
April 1994. 

But on Tuesday Mr O’Reilly 
told shareholders at the com- 
pany's annual meeting that 
Heinz was “back on track, to 
deliver double-digit growth 
in annual earnings in the 
1990s”. 

Mr O’Reilly said one signifi- 
cant area of growth would be 
baby foods. According to a 
Reuters news agency report, 
he told journalists after the 
meeting that Heinz’s board 
had approved the acquisition 
of another baby food company 
in Europe. 

Earlier this year Heinz 
bought the Farley’s baby food 
hue from Boots, the UK retail- 
ing and pharmaceutical group. 
This came shortly after it had 
agreed with Glaxo, the UK 
pharmaceuticals group, to buy 
Glaxo’s baby food line in 
India. 

However, Mr O’Reilly said 
Heinz’s growth would result 
from a combination of higher 
volume, cost reduction, price 
increases, stock repurchases, 
acquisitions and global expan- 
sion, particularly in Asia and 
the Pacific. 


Exxon offers 
co-branded card 

Exxon yesterday became the 
second US oil company to offer 
a co-branded credit card. The 
Exxon MasterCard will, the 
company said, be the first to 
offer travel-related services 
and discounts, Reuter reports 
from New York. 

Exxon’s US subsidiary is 
introducing the card with Gen- 
eral Electric’s Capital Con- 
sumer Card. 

The card will not have an 
annual fee. 


Cott warns on margins despite gain 


By Bernard Simon 
to Toronto 

Cott Corporation, the 
fast-growing Canadian, supplier 
of private-label beverages, 
lifted second-quarter earnings 
by 50 per cent but confirmed 
that intensifying competition 
was eroding margins in some 
Important markets. 

The company's latest bal- 
ance sheet provided ammuni- 
tion to both supporters and 
critics of the controversial, 
Toronto-based company which 
has been a prime target of 
short sellers on North 


American stock exchanges. 

On the one hand, accounts 
receivable, inventories and 
long-term debt rose sharply in 
the second quarter. 

However, Cott also reported 
a large increase in accounts 
payable, capital assets and 
goodwill. 

Net earnings rose to C$15. 9m 
(US$11 Jm), or 26 cents a share, 
in the three months to July 30, 
from C$10 -7m, or 19 cents, a 
year earlier. 

Sales climbed 62 per cent to 
C$320m, due mainly to a 39 per 
cent jump in US volumes, 
which accounted for more than 


half the 64m cases sold during 
the quarter. 

Volumes in Canada rose 12 
per cent, while volumes out- 
side North America were up 14 
per cent to 9.2m cases. 

Gross margins declined to 
16.3 per cent of sales from 17.2 
per cent last year and 1G_5 per 
cent in the first quarter. 

Cott attributed the narrower 
margins to weak prices in Can- 
ada and the low margins of 
Ben Shaw, its UK caxvner. 
Long-term debt rose to C$71. 3m 
on July 30 from C$41.6m three 
months earlier and C$33 2m a 
year ago. 


The latest jump was ascribed 
to ambitious capital invest- 
ments and a US acquisition. 
But Cott said its cash flow was 
“more than sufficient to fund 
heavy seasonal demands for 
non-cash working capital as 
well as increases in other 
assets". 

Mr Robert Mason, analyst at 
Richardson Greenshields in 
Toronto, said the company “is 
still considerably under-lever- 
aged". 

Its share price lost 12 cents 
to C$18.63 in early trading on 
the Toronto stock exchange 
yesterday. 


Peyrelevade review nears end 


By Alice Rawstham 
In Paris 

Credit Lyonnais, the troubled 
French banking group, expects 
by the end of the year to have 
completed its review of its 
European operations. 

Mr Jean Peyrelevade initi- 
ated a comprehensive review 
of Credit Lyonnais’ activities 
outside France when he was 
appointed chairman last year 
by the French government, 
with a brief to rescue the 
heavily loss-making group. 

Credit Lyonnais, a state- 
controlled company, created 
one of Europe’s largest bank- 
ing networks in the late 1980s 


in a series of acquisitions. 

The first phase of the Peyre- 
levade review was completed 
earlier this week, when the UK 
subsidiary of Credit Lyonnais 
announced plans to cut costs 
by closing seven offices and 
branches. 

The cuts are concentrated on 
the retail banking network 
which, said the group, did not 
have sufficient critical mass 
to compete efficiently in the 
UK. 

Credit Lyonnais intends to 
concentrate on its more com- 
petitive areas of activity in the 
UK such as corporate banking, 
private banking and capital 
markets trading. 


Similar reviews are 
approaching completion 
in other countries, notably 
Belgium, Spain and Italy. 

However, Credit Lyonnais 
.said yesterday that the group 
did not envisage making signif- 
icant cuts in these countries 
because its operations were 
larger and therefore more 
cost-effective. 

The reductions in the UK are 
part of Mr Peyrelevade’s effort 
to try to haul Credit Lyonnais 
back into the black. 

Banking analysts are bracing 
themselves for further losses 
when the group reports 
its interim results next Thurs- 
day. 



Jean Peyrelevade: first phase 
of review completed this week 


Bank of Nova Scotia 
in Argentina move 


By Bernard Simon 

Bank of Nova Scotia, Canada's 
third biggest bank, has 
extended its investments in 
emerging T-atin American and 
Asian markets by buying a 25 
per cent stake in Argentina’s 
Banco Quilmes. 

Scotiabank will pay US$57m 
for its interest, which will 
include an agreement to pro- 
vide technical services to the 
Buenos Aires-based hank. 

Banco Quilmes has assets of 
USSl^bn and 90 branches, 
making it Argentina's seventh- 
biggest privately-owned bank. 
It is controlled by members of 
the Florito family. 

Scotiabank. which has assets 
of C5132on. has for many years 
had the most extensive inter- 


national network of Canada’s 
big six banks, and is the only 
one which continues to place a 
strong em phasis on expansion 
outside North America. 

It has taken equity stakes 
and forged other links with 
medium-sized financial institu- 
tions in Mexico, r^hiie the Phi- 
lippines and Thailand. It is in 
the process of finalising a deal 
with Idris Hydraulic, a Malay- 
sian financial-services group. 

Mr Peter Godsoe, Scotia 
bank's chief executive, said the 
bank was committed to “main- 
taining and building on the 
international diversity of our 
operations, and we expect the 
rate of economic growth in 
Latin America and the Pacific 
rim to provide us with solid 
returns". 


Labatt shareholders 
vote against poison pill 


By Robert Gfobens In Montreal 

Shareholders of John Labatt. 
the Canadian-based interna- 
tional brewer, have rejected 
management's anti- takeover 
“poison pill". 

The plan would have made it 
prohibitively expensive to buy 
control of Labatt, but institu- 
tional holders swung the vote 
at Tuesday’s annual meeting, 
bringing those in favour of 
rejection to 52 per cent 

The institutions have been 
critical of the ambitious expan- 
sion plans of Mr George Tay- 
lor, president, but after the 
meeting, Mr Taylor maintained 
the vote was “a verdict on 
management and nothing to do 
with corporate strategy". 

air William Mackenzie, vice- 


president of Fairvest Securi- 
ties, an institutional holder, 
said the poison pill was unac- 
ceptable because it did not 
allow a partial bid to succeed. 
Others said it was an attempt 
to protect management 
The pUl would have been 
triggered if anyone tried to buy 
more than 20 per cent of 
Labatt. In such a situation, 
existing shareholders could 
buy additional shares at a 50 
per cent discount 
Management said the pill 
was designed to give it time to 
pursue alternatives. 

Mr Taylor said he knew of no 
potential bidders for Labatt. 
The company has been widely 
held since the Edper-Hees 
group divested control nearly 
two years ago. 


Ex-IBM 
chief to head 
Canadian 
films group 

By Louise Kehoe 
in San Francisco 

Mr Robert Corrigan, formerly 
president of IBM's personal 
computer business, has been 
appointed president and chief 
executive of Imax, a Canadian 
film production company that 
has pioneered the use of giant 
screens, large-format and 
motion simulation. 

Mr Corrigan's appointment 
is the latest example of the 
increasing cross-over between 
the computer and entertain- 
ment industries with the devel- 
opment of multimedia technol- 
ogies. 

‘The enter tainm ent world is 
rapidly changing inside and 
outside the home," said Mr 
Corrigan. 

He added that Imax was 
poised to capitalise on this by 
developing and delivering the 
next generations of hardware 
and software. 

“We are on the threshold of a 
sophisticated marriage 
between computer technology 
and entertainment," added Mr 
Douglas Trumbull, vice-chair- 
man of Imax. 

In another example of the 
convergence of entertainment 
and electronics. Mr Strauss 
Zelnick, former president of 
20th Century Fox who for the 
past two years has headed 
Crystal Dynamics, a leading 
Silicon Valley video games 
software developer, is to 
become head of BMG Enter- 
tainment North America in 
January. 

BMG is a subsidiary of 
Bertelsmann, the German 
media company. 

Mr Zelnick will oversee the 
operations of BMG in the US, 
including its music publishing 
and interactive entertainment 
operations. He will also lead 
BMG’s expansion into film in 
the US. 

• Time Warner's board of 
directors has appointed Mr 
Norman Pearistine the compa- 
ny’s next editor-inehief, Reu- 
ter reports. 

Mr Pearistine becomes the 
fifth editor-in-chief in Time’s 
history on the date of Mr Jason 
McManus's retirement at the 
end of the year. He is the first 
editor-in-chief chosen from out- 
side the company. 


The Flnamdal Times 
plans to publish 
a Survey on 




on Wednesday, October 12. 


Cities across Britain am striving to put h place new economic, 
employment and social structures which wB create the jobs and the 
balanced communities necessary for prosperity tor afl In the next 
century. The survey wB examine those efforts, and the role central and 
local government, local industry, economic development bodies and 
comraunHytased proups am pbvhg. At the same time it wB took at 
the experience of other countries toeing sMar problems and examine 
what lessons they may have to offer. 

For a tod editorial synopsis and detaBs of available advertisement 
po si tions, please contacfc- 

Pat Looker or Brian Heron on 
Tel: +44 61 834 9381 Fax: +44 61 832 9248 
Alexandra BuikBngs, Queen Street, Manchester M2 5LF 

FT Surveys 


■CjaScsajrBMBClBn 

ess ran cataa 



T he favorable growth of afi mdtcalors in the first half of 1994 
reveals the sound performance of consolidated business 
activities (operating margin up by 18%) and a nse in eaters generated 
by companies consolidated by the equity method, up by 104%. 

Under such conditiom, net e3mings before capita! gains i on the sale of 
■ business fret of tan) rose by more than 35% ewer 1 993. 
bicliidng the very tow capital gains registered during the frst half of 1994, 
... , ./irhnd roc million a sfipht increase over 1993. 


Consolidated 1 earnings 

lln rtutais ol FRH 

1st half 
Of 1994 

1st half 
of 1993 

% 

variation 

Soles 

OueratHif: margin 

12.291 

10,583 

+ 16.1% 

1,061 

900 

+ 17.9% 


171 

460 

84 

456 

+ 104% 

+ 0.9% 


SATISFACTORY 
FIRST HALF 


in Vrnv- 1 >! 0USjnc5S cperiiuvnw. — — — . — 

. f0 m renewed growth m Germany and generally good safes m other 

Y i iropean markets. „ , « 

Tins «owJ performance and the adaption of costs to the operating 
Xrcnnienl enabled the Human Healthcare segment to appreciably 

TiN.^c-iRtmujiion of irtematienal clinical trials resulted in a 10.7% 

Th W' Activities segment, excluding .the seeds businesses divested 
v m?^oT!993. posted increases in both sales and earmng^ 
lv •wide mc^ise m the contribution of compares consotoated by 
t ™ equity method to net earnings stems from the very high 
v? t >'i! ib'iitY of \vl*S Rocher. 

; 5, :: Kjif 0 j ihe v*ir vwB be marked by a strengthen** of the 
t; '■ L ' u?,hhc are segment through the acquisition of Sterling 

§ Mw* m the Perfumes and Beauty Products sector. 


Gentralnc. 

Ifirrmri g fioya.' Trustee Limited! 

I'ASffiWMWMO 
Floating Bale Subordinated 
Debentures Doc 038 
Noyce if herrtij- given tiia: the rare 
of inures: for -Jw h» raontJi period 
13 Sepwsrber l»i :» 15 Man* 1395 
ha* bon Exed ai 2*3875 p-r c «aa_ The 
amours payable per l' A flnJVB Nos* 
<s i B March BOS be l\S. £*033 
agams Coupon No IT. The amount 
payable per US. S WWW So** wiD be 
IS. J 2 JM 9 . 2 T ajraira! CVwpw. No. IT. 

Brak of Montreal 
at Agent 


oax<«otfoqpuitoto« 



HS\S< I Vf. TJMKS 

FINANCIAL 

REGULATION 

REPORT 


Fixancul Regi-lihon 
Repost 

» j act:. e.;tr.*z in.- 

fitnaajl Tor- 
'll pnn -3*»wrVr- ■»:* 
sbl ■■hxwisti 
.n oicMwit 

icralr.*' it - ' .‘(•{tif-* ■»-' 

Ji. If. fir ti FRF.F i If 'I 


S.713 

InB.TV'jl Tdv 

rXTJrtnvri 

UwJUim. 

Ltko SUI ‘•111- fsrioml 
T-J i W 


mas 

V. . in- 


New base 
Closing 

September 14, 1994 


All these Notes having been sold, this announce- 
ment appears as a matter of record only. 


SGZ-Bank 


Sudwestdeutsche Genossenschafts-Zentralbank AG 
Frankfurt am Main/ Karlsruhe 


DM 300,000,000 

Floating Rate Notes of 1994/1999 

Issue Price: 99.87% 

Interest Rate: Six-Months-DM-LIBOR plus 0.10% p.a., payable semi-annually in arrears on March 14 and 

September 14 of each year 

Repayment: September 14, 1999 at par 

Listing: Dusseldorf and Frankfurt/Main 


Trinkaus & Burkhardt 

KommanditgeseIl6cbaft auf Aktien 

Bank Brussel Lambert N.V. 


ABN AMRO Bank 
(Deutschland) AG 

Bayerische Landesbank 
Girozentrale 


Bayerische Vereinsbank 

AktiengeseUschaft 


Bayerische Hypotheken- 
und Wechsel-Bank 

Aktieagesel lachaft 

BHF-BANK 


Commerzbank 

AktiengeseUschaft 

Deutsche Bank 

Aktiengwefischaft 


DSL Bank 

Deutsche Siedli 
and Landcsnenteri 


CS First Boston Effectenbank 

AktiengeseUschaft 


Deutsche Apotheker- und Arztebank eG 


Deutsche Ban- und Bodenbank 

AktiengeseUschaft 

GZB-Bank 

GenoswnschafUiche Zentralbank AG Stuttgart 


Lehman Brothers Bankhaus 

AktiengeseUschaft 


Norddeutsche Landesbank 
Girozentrale 


DGBANK 

Deutsche Genossenschaftsbank 

Hamburgische Landesbank 
Girozentrale 

Rabobank Deutschland AG 


Schweizerische Bankgesellschaft 
(Deutschland) AG 

Westdeutsche Landesbank 
Girozentrale 


SGZ-Bank International SA 

Luxembourg 

WGZ-Bank 

Westdeutsche Genoa sensch afts - Zen Lraf ba nh eG 


X 


\ 












FINANCIAL TIMES THURSDAY SEPTEMBER 15 1994 


INTERNATIONAL COMPANIES AND CAPITAL MARKETS 


Jardine motors arm moves Mitsubishi 

i xa/ a • j a and Daimler 

ahead 6% at midway stage extend 

By LquIm Lucas April, pat a 150 per cent levy forward from the previous AA.nnAraHnh 

in Hong Kong on top-range big-engine cars year. tU UpCI dUUIl 


By Loufeg Lucas 
in Hong Kong 

Jardine International Motors 
Holdings, the Bong Kong based 
car distribution am of the Jar- 
dine Group, yesterday reported 
a 6 per cent increase in net 
profits tt US$3&lm for the six 
mo nths to June 30, up from 
935 . 8 m in the same period last 
year. 

Gains were struck on a 55 
per cent surge in turnover, to 
S717.5m From $ 462.4m, 
reflecting the acquisition of 
Cica in Europe. Sales and 
deliveries into China during 
the second quarter were hit by 
the mainland's additional tar- 
iffs on vehicles. 

The new taxes, effective from 


April, pat a 150 per cent levy 
on top-range big-engine cars 
sold to joint ventures, which 
make up the bulk of imported 
car sales. 

Mr Simon Keswick, chair- 
man, said: “The strength of the 
Hang Kong market and contin- 
ued recovery in most o£ the 
group's other operations will 
help to offset the effects of 
higher tariffs in China, and 
results for the fall year are 
expected to be satisfactory.** 

Some 77 per cent of the 
group's profits before interest 
are generated in Asia. In spite 
of a strong market in Hong 
Kong, half-year profits from 
the colony slipped from the 
1993 first half, when a large 
number of orders was carried 


forward from the previous 
year. 

Kaming w per share for the 
half-year rose in line with 
after-tax profits, 6 per cent 
to 7.98 cents from 7 A cents last 
year. The dividend is to be held 
at L20 cents. 

Jardine International 
Motors, which is only listed in 
Hong Kong, has no plans to 
quit the exchange. However, 
the issue of a possible de-list- 
ing - following the decision by 
Jardine Matheson Jardine 

Strategic to sever flwir Hnng 
Kong listings at the and of the 
year - is on the agenda at 
hoard meetings today and 
tomorrow for sister companies 

p ajr y Fa rm nrlantal 

ami HnPgfcpng T-flwd. 


HK’s Morning Post slips 4% 


By Louise Lucas 

South China Morning Post 
Holdings, the publisher of 
Hong Kong's feeding English- 
language newspaper, has 
reported a 4 per cent drop in 
annual net profits to HK$564m 
(US$73m) from HK$586.4m for 
its first year under the control 
Malaysian millionaire Mr Rob- 
ert Kuok. 

Results for the year ended 

Arnott’s puts 
off building 
new factory 

Arnott’s, the Australian food 
group 61 per cent owned by 
Campbell Soup of the US, said 
it had put on bold its planned 
A$200m (US$i47m) biscuit fac- 
tory because of the decision by 
the Australian Prices Surveil- 
lance Authority (PSA) to con- 
tinue monitoring the company, 
Reuter reports from Sydney. 

Mr Paul Bourke, Arnott’s 
managing director, said the 
new factory, planned to be 
built in Sydney, was a key part 
of its push into Asia. 

The PSA, a federal body, 
recently released a report on 
biscuit pricing. 

Arnott’s said earlier this 
year it may shelve plans to 
build the factory if it was not 
released from surveillance. 


June 30 1993 were swollen by 
an exceptional item of 
HK$92.4m, from the sale of 
investment properties. 

There were no exceptional 
items in the latest financial 
year. 

Earnings per share slipped in 
line with profits, down 4 per 
cent to 3761 cents from 39.09 
cents. But the dividend is to 
be maintained at 13 cents a 
share. 


Circulation figures show a 4 
per cent rise to 105,458 copies 
for the flagship daily paper, 
and Mr Kuok says the entry of 
a third English-language news- 
paper - The Eastern Express, 
which launched earlier this 
year - has not adversely 
affected either revenues or cir- 
culation. 

Mr Kuok paid US$349m to Mr 
Rupert Murdoch for control of 
the Post last September. 


James Capel forms 
South Africa link 


By Mark Suzman 
fai Johannesburg 

International securities house 
James Capel and South African 
stockbrokers Simpson McKie 
have announced plans to form 
a new company, Simpson 
McKie James Capel, to be 
responsible for the marketing 
of South African securities 
through James Capel offices 
worldwide. 

Once the necessary amend- 
ments to South African securi- 
ties law are made, expected by 
April 1965. a James Capel affili- 
ate will purchase SO per rent of 
Simpson McKie. ft plans ulti- 
mately to purchase a further 21 
per cent when further legisla- 


tion permits. The value of the 
transaction has not been 
released. 

All 16 current directors of 
Simpson McKie will be on the 
new board while James Capel 
will wominatA a further three. 
Mr Duncan Agar, James Capel 

fatematwmal director, said the 

transaction gave James Capel 
direct access to tire South Afri- 
can waifcpt. 

According to Mr Dixie 
Strong. Simpson McKie chief 
executive, bis firm’s expertise 
would be able to provide the 
new company with top quality 
South African research, while 
Die James Capel link would 
provide it with an established 
global marketing network. 


Notice to the Holders of 

US. $75000000 

654 % Convertible Bonds due 2001 


P.T. Indocement Tunggal Prakarsa 

tihe-tawO 

NOTICE IS HEREBY GIVEN THAT, m accordance w&h Candtion 7(c) a( the 
Bands, the Issuer win redeem all ottheoutstandng Bands on Octoberi7, t994 
■Redemption Data! m the* Principal Amount plus accrued Interest from 
the Iasi payment duo to the Redemption Dam. all as more fully provided In 
tno Terms and ConcMons appiceMe to tfw Bands and tha related Paying 
Agency Agreement. 

Payment o< tha Redemption Amount. together with interest due. wtf ba mada 
on of after tha Rede mpti on Date against presentation and surrender of the 
Bonds at tha office of the Prwidpal Paying Agent or of any Paying and 
Conversion Agents fated below Each Bond pre se n t ed for redemption should 
ba patented together with all unmatured Coupons appertaining thereto. 
Unmanned Coupons due after .tone 20. 1994 (whether or not attached) shall 
become void Bid no payment shaB be made in respect thereof. Bonds 
and Coupons wdl become void unless presented for payment witMn penods 
of HJ years and 5 yean respectively from October 17. ISM as defined in 
CondWon 11 ol the Bonds. 

Bondholders ere reminded that noiwMhstenrfing the foregoing they wfl 
reman emitted to exerOse their rights to convert the Bonds tor Otdmery 
Share* of the Issuer at a Conversion Price of Rp 7,285 (see our notice dated 
August 12, 1994} per share aid teth a (fared raw of exchange of Rupah t.946 « 
U S SI. The C losing Price of the relevant share a* ot September 7. 1994 a 
Rupiah 9,000. The Conversion rights la ex erasable at any time up to and 
mdiKftpg October 12. W94 by way of Bondrwtdera detnrertng to the specified 
office of any Plying end Conversion Agents listed below the Conversion 
Nonce in duplicate together with tfw relevant Bonds (together with at 
unmanned Coupons thereto). 

PRINCIPAL PAYING, TRANSFER AND CONVERSION AGENT 
The Chase Manhattan Sank, N.A. 

Wootgete House. Cotemen Street, London EC2P2HO 

RAYING, TRANSFER AND CONVERSION AGENT 
Chase Manhattan Bank Chase Manhattan Bank 

Luxembourg SJL (Switzerland} 

5 Rue Ptaatis 63 Rue du RMne 

L-2336. Luxembourg Grund CH-1204 Geneva 

Banque Bruxelles Lambert SJL 
24 Avenue Mami<i. 8-tOSO Brussels 


Christiania Bank og Kreditkasse 

U.S .$250,000,000 

Hoofing Rato Subordinated Notes Due 2001 

Noh’ce b hereby given that tha Rale of Interest has been fixed at 
5.375% and that rfve interest payable on Aw relevan t Interest Payment 
Date March 15, 1995. against Coupon No. 17 in respect of 
US$10,000 nominal of me Notes wffl be US$270 2A and! in rasped 
of US$250,000 nomind of the Notes will be US$6,756.00. 


iyTcSiixsnk, KlAl [Issuer Services), Agent Bank CfTIBANGE) 


Bank of Greece 
Athens, Greece 
U.S. $250,000,000 
Floating Rates Notes due 1999 

For rbe tin months 14rh September, 1994 to 14th Much, 1995, 
the Notes will carry an interest rate of 5.75% per annum with a 
coupon amount of U.S. $289. [0 per U.S. $[0,000 Note, payable on 
14th March. 1995. 


Butk e n Tnat 

Company .London 


Agent Bank 


For and on behalf of 

P.T, Indocement Tunggal Prakarsa 

By: Tha Chase Manhattan Bank, N LA. 
London, Principal Paying, 1>ansf«r and 
Conversion Agent 

SsptwnbariS.1984 


CHASE 


The Chase Manhattan Corporation 

U-S. $400,000,000 

Floating Rate Subordinated Notes due 2009 
For the three month* 14rh September, 1994 to Hfh December, 1994 
the Notes will cany an interest rate of 5.25% per annum with a 
coupon amount of U.S. $132.71 per U.S. $10,000 Notes, payable 
on 14th Dece m ber, 1994- 


Bankers Trust 
C ompan y, London 


Agent Bank 


U.S. $400,000,000 

Hygro-Qu^bec 


Floating Rate Notes, Series GL, 

Unconditionally guaranteed as to payment 
of principal and interest by 

Province de Quebec 


Interest Rate 
Interest Poriod 

Interest Amount per 
U.S. SIOOOO Note due 
15th March 1895 


5/4% per annum 
15th September 1994 
15th March 1995 


U.S. $27653 


CS First Boston 

Agent 


U.S. $100,000,000 

GW” 

Great Western Financial 

Corporation 

Floating Rate Notes Due 1995 


Interest Rata 
Interest Period 


per annum 


Interest Period 15th September 1994. 

15th December 1994 

Interest Amount per 

US. S50.000 Note due 

15th December 1994 US. S66354 


CS First Boston 

Agent 


CM E designs new currency swaps' 


Japan’s Mitsubishi gr oup and 
Daimler-Benz, the (toman 

motors and aerospace group, 
have reached agreements on 
various engineer exchange 
programmes, as well as on 
small-scale co-operation in 
ffoltfc including awnw a M 
preservation and telecommu- 
nications, Reeder reports from 

Tokyo. 

•The agreements were 
announced in a joint state- 
ment issued by Daimler-Benz 

and four Mtsnbishi wpmhg 
- Mitsubishi Carp, Mitsubishi 
Electric, Mitsubishi Heavy 
Industries and Mitsubishi 
Motors. 

Mitsubishi and Daimler- 
Benz officials met this week to 
discuss areas of business 
co-operation. They have met 
once or twice a year since 
1990- 

In addition to various per- 
sonnel exchanges, the state- 
ment repor te d three moderate 
co-operation agreements. 

•There were no big Joint 
projects unnnnncpd ^ time. 
It's just that co-operation 
between the two companies is 
gradually building up,” an 
official of Mitsubishi Heavy 
said. 

Mitsubishi Heavy and Daim- 
ler agreed to exchange young | 
engineers and managers in 
preparation for a future joint I 
project 

Daimler-Benz has been ask- 
ing for Joint development of 
aircraft, but Mitsubishi had 
called for engineer exchanges, 
Mitsubishi Heavy mM. 

The three agreements 
include the establishment of a 
50-56 joint venture between 
Mitsubishi and Daimler-Benz's 
wholly owned unit Daimler- 
Benz Inter-Services, to provide 
general i nfor ma tion. 

The statement added that 
Mitsubishi Motors bed agreed 
to start selling pick-up trucks 
in South Africa through Daim- 
ler’s Mercedes-Benz South 
Africa unit by the mid of Octo- 
ber, six months ahead of 
schedule. 

Daimler-B enz ami Mitsubi- 
shi Heavy also decided to con- 
tinue joint research on the 
recycling of waste plastics. 

. The two groups are. to seek 
areas of co-operation in other 
parts of Asia. 


Ever since the Chicago 
Mercantile Exchange first 
launched foreign currency 

futures in 1972 it has been try- - 
fog to find ways to. bring a 
larger portion of the interbank 
foreign exchange trade 'em to 
its dealing floor. The interbank 
market, with, same gLOOphain 
daily turnover, is a tet target 
for any of the 'World’s 
exchanges, but a difficult t me. 

The interbank market is 
highly liquid, priding is 
straightforward, default rates 
are remarkably low, and long- 
standing credit Hubs back up 
trading relationships. 

In designing its new Cur-, 
rency Forward Contracts, Jhe 
exchange has drawn* audits 
experience with its very suc- 
cessful eurodollar futures and. 
options contracts. "Currency 
Forwards have the potential to 
.become a primary swap pricing 
mechanism like eurodollars 
have become,” says Mr Chffard 
Besser, a former options trader 
who has spmt the past year 
making markate in the CUE’S 
Rolling Spot pfi. 

Noting that forward swaps 
(usually a spread with one kg 
in the spot nun-few* and one an 
a forward date) comprise about 
40 per cent of all foreign 
exchange transactions, the 


CME hopes its version of for- 
wards will offer enough incen- 
tives that they will eventually 
win over a substantial amount 
of interbank trade. -Used .in 
confuctian with the CME’s 
yearokKRoUtog Spot contracts^ 
th» gwhanp products am rep-: 

licate over-the-counter -car- 

reicy swaps. 

DERIVATIVES “1 


Those swaps typically are 
bets an the movement of the 
interest rate differentials 
between two currencies over 
time. . \ \ ■ 

The exchange says its for- 
wards offer at. least three dis- 
tinct advantages:' imHim inter- 
bank currency forwards, 
forwards don’t tie up bank 
credit lhms, and so are particu- 
larly attrac t i ve .for Iocktog in 
interest rate differentials 
between currencies for periods 
beyond one year banks trad- 
ing tike exchange products do 
not have to be concerned with 
BIS capital adequacy require- 
ments; and finally, credit risk 
is nrinfanal because the CMS 
clearing house acts as counter- 
party to each trade. 

The cost savings using the 
CME can be gi gnfftaawt fo 


the interbank market, credit 
lines and capital charges can 
add up very quickly - but that 
feature may be lost on bank 
traders, who are not directly 
^sponsible for. their transac- 
tion costs. 

For the CME products to 
have a chance at success, the 
exchange will have to attract 
mid' maintain sufficient liquid- 
ity to keep the nascent market 
.going aver the long period it 
will take to wean banks away 
- from established practices. 

. Mr Garret Glass, senior 
vice-president and head of mar- 
ket risk management at First 
National Bank of Chicago, 
notes, that foreign exchange 
• transaction costs are insignifi- 
cant to hanks on a trade-by- 
trade basis. However, he says: 
“Over time, we’ve found that a 
bank would be better off using 
a clearing house for foreign 
exchange trades." 

'. The CME laimrhed its Cur- 
rency Forwards cm September 
12 with a l/D-Mark. product, 
and intends to expand with 
-ttyea contracts if D-Marks are 
successful The forwards are 
valued at $250,000 each, trade 
in one-quarter point “pips", or 
increments, and settle, in an 
unusual twist, into the CME’s 
Rolling Spot currency con- 


PTC offering attracts $1.4bn 


By Antonia Sharpe . 

Bids from international 
favestoxx for a planing of fen 
vouchers in the state-run 
Pakistan Telecommunication 
Corp (PTC) reached $L4hn yes- 
terday, joint global co-ordina- 
tor Jardine Hearing «»td 
The offering had been expec- 
ted to raise around $75Qtn for 
the gov ernm ent of Pakistan. 
The fen PTC vouchers, which 

are wvnliangwahTft fnfn ghares 

in the future privatised Pakis- 


tan ' Mwwmmmntotimm Com- 
pany. account for around 10 
per cert of the company. 

The bookbuilding process is 
schednled to dose today, after 
which eUnffaKaiM win be made. 
An official at Jardine Fleming 
said that the- vouchers were 
likely to be priced between 
Rs5J«> and Rs5£00. This com- 
pares with a price of RxSjOOO in 
a recent domestic offering of 
vouchers which accounted for 
2 per cent of the company. 

The official said that demand 


was particularly strong from 
emerging market funds and 
from faaH+ntinnai investors in 
east Asia, fits UK and the US. 
Nan-resident Pakistanis in the 
Middle East also showed a 
keen interest hi the offering. 

The strong response from 
foreign investors prompted the. 
vouchers to dose Rs575 higher 
at RsS^SO at the Karachi Stock 
Exchange. 

Jardine Fleming is co-ordina- 
ting the nfforfng with. Mushm 
Commercial Bank. 


Advance for Indonesian timber group 




By Manuela Saragosa 
In Jakarta 

PT B art to Pacific Timber, 
Indonesia’s largest manufac- 
turer of timber products, said 
net income in the first six 
months of 1994 rose to RplOSbn 
($47m) from Rp82bn a year 
earlier. 

The company also reported 


US$100,000,000 
Subordinated Collared 
Floating Rate Depositary 
Receipts due 2003 Issued by 

The Law Debenture Trust 
Corporation pk evidencing 
entitlement to payment or 
prinaptd and interest on 
deposits with Banco di Napoli 
Hong Kong Branch 

The receipts wffl bear i nter e st 
at 6.125% per annam from 
IS September 1994 to IS 
March J99S Interest payable 
on 15 March 1995 toSl amoart 
to US$30.80 per US$1,000, 
USS3079S per US$10,000 and 
USS3.0 79J1 per US$100,000 
receipt 


that net sales increased to 
Rp481bn from Rp462bn the 
year before. 

Bari to Pacific has come 
under fire recently for manage- 
ment at its forest concessions. 

The company, which ranks 
as the world's largest .tropical 
hardwood plywood manufac- 
turer, is majority owned by Mr 
Prajogo Pangestu. , 


Mr Pangestu recently agreed 
to allow the Tnrkmprfnn gov- 
ernment to t»l« a 49 per cent 
stake in two of the forest can- 
cessions he operates and which 
supply Barito Pacific with 
timber. 

The Ministry of Forestry said 
that the- move was aimed, at- 

improving wanagHtiHnt at the 

forest concessions. 


tracts. Unlike the CME’s cur 
rency futures, Currency Foe- 
wards are quoted in European 
terms, making the product 
compatible with the OTC mar- 
kets. 

The contracts are listed' two 
years into the future and 
expire on a monthly basis. 

Currency Forwards, pitched 
to please the interbank market, 
do not have much to offer the 
ty pical CME floor trader. The 
potential market is huge, but 
.particularly in the forward 
swaps arena, prices do not 
move much, and provide few 
short-term opportunities. 

This does hot bother the 
exchange, which recognises 
that the Currency Forward and 
Rolling Spot contracts, prop- 
erty nurtured, could transform 
the CME into the world’s first 
forex clearing house. Rather 
than depend on local traders, 
the exchange is relying on 
member hanfea to quote both 
sides of the forward and rolling 
spot markets. 

“Our big challenge is to over- 
come inertia,” says Mr. Besser. 
“Bank traders aren't very 
adventurous. We have to get 
big institutional traders to fry 
us out,” he mid. 

Laurie Morse * 

Australis Media 
posts loss of 
A$19m for. year 

By NQdd Taft in Sydney 

Australis Media, the quoted 
company which holds one of 
Australia’s two commerdally- 
available satellite television 
licences and which has pledged 
to set up a pay-TV system by 
the beginning of next year* yes- 
terday unveiled a loss of 
A$19.1m (US*l4m) in. the year 
to end-June. 

Australis said that the loss 
reflected start-up and estab- 
lishment costs for both - its 
planned broadcast subscription 
services and its targ e te d 
xtess. - 

. The company correhtly 
runs a handful of special lan- 
guage services and a news 
service, which are sold to sub- 
scribers in Sydney and Mel- 
bourne. ... . . 

The company said that its 
em phasis over the next few 
months wou ld be on the com- 
pletion of programming 

ar I aTigpmPT)fe! 


Agent Morgan Guaranty 
Trust Company 

JPMorgan 


MO % C«®) A M 'ri * »}a'j MCj 


To the Holders of 

HALIFAX BUILDING SOCIETY 

(the "Society") 

£350,000,000 Floating Rate Notes 1995 

(the "Notes") 

NOTICE IS HEREBY GIVEN that, pursuant to Condition 5(c) of die Notes, the Society 
will redeem all outstandiBgNotea at their principal amount on October 18, 1994: 

Payment in respect of the Notes will be made against presentation end surrender, on or after October 18, 
1994, of Notes together with ail ruunetnred Coupons appertaining, thereto. Such payment will be made in 
sterling at the specified office of the Principal Paying Agent in London or at any specified office of any 
Paying Agent by a sterling cheque drawn on or, at die option of the holder, by transfer to a sterling account 
maintained by the payee with, a bank in London. 

Interest shall cease to accrue on the Notes from October 18, 1994 and tuunatnred Coupons relating to the 
Notes shall become void on sacb date. 

PRINCIPAL PAYING AGENT 
Morgan Guaranty' Trust Company of New York 
60 Victoria Embankment 
London EG4Y OJP 


PAYING AGENTS 


BANQUE PARIBAS 
US$400,000,000 
Undated subordinated 
floating rate securities 

In accordance with the 
pr o vision s of the securities, 
notice Is hereby given that 
for the interest period from 
15 September 1994 to 75 
Dec em ber 1994 the securities 
mOl carry an interest rate of 
5.1875% per annam. Interest 
payable oaiae IS December 
1994 per US$1, 000 security wid 
amount to USSI3.il and per 
XJSSIQ00O security wiQamoant 
to US$131.13. 

Agent Morgan Guaranty 
Trust Company 

JPMorgan 


Morgan Guaranty Trust Company 
of New York 
avenue des Arts 3S 
B-I040 Brussels 


Dated: September 15, 1994 


Banque Paribas Luxembourg 
10A boulevard Royal 
L-2093 Luxembourg 


HALIFAX BUILDING SOCIETY 
Bj: Morgan Guaranty Trust Company 

0F StYTOBK bm Principal Paying Agmt 


BANQUE PARIBAS 

US$200,000 jxn • 

Undated floating rate 
securities 

i in accordance with the 
pmaisions of the securities, 
notice b hereby gioen that tor 
the three month interest period 
from 15 September 1994 
tolS December 1994 the 
seanbies inSU carry an interest 
rate of 5.0625% per annam. 
interest doe on 15 December ■ 
1994 aim amount to USS1Z80 
per US$1,000 security. 

Agent Morgan Guaranty 
Trust Company 

JPMorgan 


City of Stockholm 

US$325,000,000 
Floating rstenotes 2999 . 

Notice is herebygiaen that the 
notes mil bear interest at 5% per 
annum from S September 1994 
to 15 December 1994. baerest 
payable on l5 De cemb er 1994 . 
nxQamoamtoUSSU.64per 
US$1,000 aote, US$12539 per 
US$10,000 note and USSJJ6189 
per USSIOO.OOO note. 

Agent Morgan Guaranty 
IVust Company 

JPMorgan 


US$500,000,000 
Floating rate notes 
dueSeptenber 1998 

In acc ordan ce with the 
precisions of the nates, notice 
is hereby gipen that tor die 
six months interest period 
from 15 Somber 1994 to 
15 March 1995 die notes 
adUcturym interest rate of 
5J1% per annum, baerest 
payable on 15 March 1995 
util amoant to US$266198 
per US$10.000 note and 
US$6,667 j 58 per US$250,000 
note. 

Agent Morgan Guaranty 
Trust Company' 

JPMorgan 



LEGAL NOTICES 


Note Thb notice b nasty 

1-KboawwBbeEdfc 


JOHN VnLUAM POWfill 1 


NAUCMVALmANGERA, SJV.C, 

as trustee of the Nafin Chance Tnnt 

M marMfcr At 

iy, 19^7 

M r - . NACIONAL financiers s!nc 

December 15 1994 PWnwflt date 


September 15, 1994 ~ 

fee Gjjbon^. N A. fegmr Sgvfeml. 


Bank CmBANCO 


0"' 






4.- 













FINANCIAL TIMES THURSDAY SEPTEMBER 15 1994 


19 


★ 

INTERNATIONAL CAPITAL MARKETS 


•BZW move brings DTB and Matif closer 

By Richard Lapper 


in Paris 

The French and German futures and 
options exchanges came one step closer 
yesterday when a UK bank announced 
it was ready to trade interest rate 
futures across a link jointly developed 
by the two markets. 

BZW Futures, part of Barclays, will 
shortly begin trading a range of Ger- 
man futures and options from its Paris 
offices. Other traders are expected to 
follow over the next few months. 

France's Matif and Germany's DTB 
announced their collaboration 18 


months ago. They heme that the link 
will allow them to compete more effec- 
tively with LifTe and other international 
erahang ns 

“This is the most important single 
development in European financ ial 
futures markets for many years," said 
Mr Graham Newall, chief executive of 
BZW Futures. 

“It is the first trade in a new era in 
the way futures business vrifi be con- 
ducted in Europe," he added, arguing 
that the development would “enhance 
liquidity on DTB”. The trades have 
been made possible by the installation 
of DTB terminals in Paris. 


In a second stage of co-operation, 
Matif, where trades are predominantly 
carried out through the traditional 
“open outcry” method on the dealing 
floor, will allow DTB members to trade 
two of its products over the German 
exchange's screen-based trading 
system. 

Subsequently, the two exchanges 
plan to generate joint plans to develop 
trading software, clearing and settle- 
ment 

The exchanges will be particularly 
keen to challenge Liffe’s 70 per cent 
share of the market for German bund 


Mr Daniel Hodson, chief executive of 
LifTe, played down the threat, arguing 
that the London exchange offers a 
wider range of products, greater liquid- 
ity and better distribution than its 
European rivals, which “tend to be seen 
as domestic exchanges”. 

He said, however, that the tie-up 
could succeed in attracting new players 
into the marketplace. 

Line would not lose any "significant 
percentage” of its bund business to the 
DTB, he predicted. 

Collaboration between LifTe and its 
European counterparts Is likely to 
remain li miter^ Mr Hodson said. 


contracts. 


ITC Classic 
seeks link 


Halifax launches first FFr offering 


with BAT unit 

By Kurad Bose hi Calcutta 

rrc Classic Finance, the TtmK»ti 
financial services group, is 
seeking a partnership with 
Three dneedle Asset Manage- 
ment, a BAT subsidiary, In 
order to promote an asset man- 
agement company in Tnriin 

Mr Feroze Vevaina, an ITC 
Classic director, said the two 
companies had started discuss- 
es ing “the various aspects of the 
proposed collaboration, includ- 
ing the participation in the 
equity capital of the asset man- 
agement company to be 
formed. I think the collabora- 
tion will take a definite shape 
by the end of this year". 

rFC Classic has been given 
permission by the Securities 
and Exchange Board of India 
to launch mutual funds. But, 
as Mr Vevaina pointed out, 
“we need expertise and tech- 
nology to design and operate 
dose and open ended schemes. 
A tie-up with Threadneedle 
will take care of that ”. 

Threadneedle has invested in 
Indian nompaniac through its 
emerging markets fond. 

ITC Classic had triad to pro- 
mote the asset management 
company in partnership with i 
Peregrine of Hong Kong. 


By Tracy Corrigan 

Halifax Building Society 
yesterday launched its dehut 
offering in the French franc 
market, following a series of 
investor presentations in Paris 
last week. 

Although the Halifax is now 
the best-rated financial, tnstita- 


INTERNATIONAL 

BONDS 


tion in the UK, building sodet- 
ies have often fared poorly 
with overseas investors 
because they are perceived as 
rather parochial entities. How- 
ever, the success of the Abbey 
National, which has become 
one of the most active borrow- 
ers fo thp intomatimwl mar . 

kets since its conversion to 
hank status, inspired other 
societies to 6tep up their mar- 
keting efforts with interna- 
tional investors in an attempt 
to reduce wholesale funding 
costs. 

A Halifax treasury official 
described the deal as “part of a 
consistent process to establish 
a presence on the world's prin- 
cipal markets". 

The seven-year offering of 8 
per cent bonds was priced to 
yield 28 basis points over the 
comparable OAT, a level which 


dealers said was aggressive, 
relative to deals by better- 
known French borrowers. 
However, there is currently a 
dearth of paper in the French 
market, particularly at current 
coupon levels. 

The lack of new issues is 
partly due to poor swap oppor- 
tunities. However, the Halifax 
deal was swapped into floating- 
rate sterling at a level slightly 
higher than the society nor- 
mally pays for borrowings 
under its medium-term note 
programme, an said. 

Joint lead manager SBC esti- 


mated that around half the 
deal was placed overseas and 
half in France. 

hi the D-Mark sector, KFW, 
the German development 
agency, launched a DMlbn 
offering, which successfully 
reopened the ZO-year sector 
after a five-month luh. Priced 
to yield 25 basis points over the 
10-year bund, dealers aaiH th» 
spread was sufficiently attrac- 
tive to appeal to both interna- 
tional and domestic investors, 
unlike a number of recent 
D-Mark offerings, which were 
too aggressive compared with 


paper available in the domestic 
market 

Joint l ewd manager JJ*. Mor- 
gan reported a 50/50 split The 
spread held steady at 25 basis 
points, after the syndicate 
broke. 

In the dollar sector, two 
banks launched fixed-rate 
deals, while three banks 
la unched floating-rate transac- 
tions. Among the floating-rate 
deals, the Bank of Melbourne 
brought an initial $250m offer- 
ing of floating-rate notes, bear- 
ing interest of 25 haste points 
over three-month Libor. 



NEW INTERNATIONAL BOND ISSUES 


Bosronar 

US DOLLARS 

Bank of Metoounet 

Series Bk. Corp^Cayman] 

YariDnkig Mam Tranag4S 

CS flret Boston 
Boolattnoam. da Exportt 
Foioa Bark AS Btorway)t 

Amotari 

m. 

300 

200 

160 

ISO 

100 

75 

Coupon 

% 

» 

7J0 

(144-214) 

7.75 

M> 

W 

Prim 

B92BR 

100.47R 

100 

99L88R 

SSlSGR 

100 

Maturity 

OCL1997 
Oct 1007 
OCL20O1 
OCL1908 
OCL1905 
Sdp2004 

Fees 

% 

ais 

0.1 7R 
2.50 
(L30R 
D.10R 
030 

Spread 

bp 

♦80W 

Book narmar 

CS First Boston 

Sates Bank Carp. 

Barings ML Ha 

CS Hrst Boston 

Sates Bank Corp 

JP Morgan 

AUSTRALIAN DOLLARS 
Oeyariataa Varetnabank 

100 

1025 

ioai7s 

OCL20O4 

2125 


1 Ini. ill gg-iM 

namofta 

FRENCH FRANCS 

HaEtex Buklng SoC. 

3bn 

820 

9058R 

OCL2001 

032SR 

+28 (914-01) 

Paribaa / SBC 

D-MARKS 

KFWfetf. Hn. 

Tbn 

7.75 

0O39R 

Ota 2004 

0S25R 

+25 1514-04) 

JP Morgen / West LB 

SWISS FRANCS 

Oerflt Local da Fiance 

150 

5275 

102.125 

Ota.1998 

- 

- 

Menfl Lynch AG 


FM terms and nan-caBsbta unless stated. The yield spread fovev releva nt government bond) el iauich to seeded by the toad 
ma n ages. SComenfele. {floating rata note, ft fixed re-etar price: tees ere shown at the ro-aftar level, a) Amount Inc iw ed from 
S250m. Pays 3 mth Libor +2Sbp. b) Ffeteg 298/1999, tmfc a ted premiun 1-694. put et year 5, lo yteW between 6-6.4%. c) Spread b 
over the Interpolated yield <3 Amoirt Inc reared to S2Mta Coupon p^e 3 mth Ubor +50bp. Long first coupon, at Subonfirwted issue. 
Coupon pays 6 mth Ubor +115bp (or fide 5 years, then pays 6 mth Lfeor *iflObp- 


Gilts slip on UK inflation 
worries and European falls 


By Martin Brice and Antonia 
Sharpe in London and Frank 
McGurty In New York 

Concerns about the UK 
government's ability to keep 
the lid on inflation and 
declines in some European 
bond markets pushed UK gilts 
lower yesterday, with the long 
end failing by more than one 
point 

Gilts fell initially on a 
higher- than -expected rise in 
the Retail Price Index of 2.4 per 
cent for August. Analysts said 
the fen then gathered pace on 
worries over the government’s 
anti- inflation policy. 

Mr Simon Briscoe at 
S.G. Warburg said the decision 
by UK chancellor Kenneth 
Clarke to raise the base rate by 
50 basis points to 5.75 per cent 
on Monday had been presented 
as a move to pre-empt infla- 
tion. 

However, some dealers now 
believed the move was in 
response to the RPI figures 
which they suspected the chan- 
cellor knew about on Monday. 
“People had been Led to believe 
that the authorities made this 
[interest rate] decision without 
knowing the RPI numbers,*’ be 
said. “There is now uncer- 
tainty about policy and that 
ban made the mar ket nervous 
today.” 

Mr Andrew Roberts, at UBS, 
said gflts were unlikely to rally 
as long as the market felt Mr 
Clarke was mrreamng interest 
rates in response to inflation, 
instead of moving to stifle it 

But Mr Nigel Richardson, at 
Yam a I chi, said: “Really there 
is no ai gnificant inflation prob- 
lem in the UK, so Monday's 
rate rise is still preemptive.” 

The yield spread between 
gilts and bunds widened from 
around 138 basis points on 
Tuesday to around 150 yester- 
day. On Liffe, the December 
long gilt future traded 
at 98g in late trading, a 


fall of 1 -ft point on the day. 

■ Comments by the Bundes- 
bank's vice-president, Mr 
Johann Wilhelm Gaddum, 
which suggested that further 

GOVERNMENT 

BONDS 


interest rate cuts were unlikely 

and stroii ger-than -expected 

wholesale data for August 
weighed on German govern- 
ment bonds yesterday. 

Mr Gaddum’s view that Ger- 
many's rapid money supply 
growth did not allow Mm to 
justify a reduction in the fixed- 
rate repo rate from the current 
4£5 per cent dashed lingering 
hopes that the Bundesbank 
would ease the repo rate this 
week. The market now expects 
no changes from the Bundes- 
bank after its meeting today. 

Although Mr Gaddum is 
regarded as one of the Bundes- 
bank's more hawkish mem- 
bers, analysts said his remarks 
were the first clear indication 
that the Bundesbank was mov- 
ing away from the policy of 
cutting interest rates further. 

Mr Julian Callow, European 
economist at Kleinwort Ben- 
son, said Mr Gaddum’s views 
also suggested that the Bund- 
esbank was now giving a 
higher priority to dampening 
down inflation rather than to 
tarViing unemployment. 

A 02 per cent rise in west 
German wholesale prices in 
August from July, up 2 2 per 
cent from a year earlier, and 
an unexpected drain of 
DMl^bn by the Bundesbank 
during its weekly repo 
operations were seen as two 
further reasons why the Bund- 
esbank would not be easing 
rates further. On Liffe, the 
December bund future fell 0.5 
point to 88.70 while in 
the cash market, yields on 
10-year bunds rose by 8 


basis points to 7.60 per cent 

■ The weakness in bunds 
prompted the spread between 
German and French bonds to 
go below 50 basis points at one 
point during the day. However, 
dealers said the narrowing 
spread did not necessarily 
reflect greater investor confi- 
dence in the French market 
On the Matif, the December 
notional bond future was 
barely changed at 110.90. 

■ US Treasury bonds dipped 
yesterday morning an news of 
a surprising increase in retail 
sales, excluding cars. 

By midday, the benc hmar k 
30-year government bond was 
h down at 97!%. with the yield 
rising to 7.681 per cent At tbe 
short end, the two-year note 
was unchanged at 99H, to yield 
6.317 per cent 

The day's economic news 
was mixed, but on balance it 
only darkened the mood of 
traders already gloomy about 
recent evidence of infla tion. 

As the session began, the 
Commerce Department 
announced that retail sales last 
month were up 08 per emit, 
against forecasts which cen- 
tred on a 1 per cent gain. 

But enthusiasm over tbe 
favourable headline figure was 
dampened by evidence that 
much of the growth had come 
from outside tbe motor vehicle 
sector. Excluding automobiles. 
August sales climbed 0.7 per 
cent, much higher than the 0.4 
per cent increase which bad 
been expected. An unusually 
sharp downturn in sales by res- 
taurants and bars last month 
also supported a negative 
interpretation of the report as 
a whole by suggesting the sales 
In other areas were strong. 

In the end, traders were left 
with the impression that the 
recent series of monetary tight- 
enings were having little suc- 
cess in cooling the economy. 


WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONDS 

Rad Day's 

Cotton Data Price change 

VWd 

Week 

ego 

Mond 

ago 

Auenfie 

9.000 

09/04 

823900 

-1.180 

1020 

931 

923 

Beckon 

72S0 

04AM 

905000 

-0240 

067 

568 

527 

Canada* 

8300 

08(04 

85.1000 

-0100 

582 

599 

579 

Damtk 

7.000 

12/04 

857000 

-0160 

9.21 

516 

589 

France BTAN 

aooo 

05/98 

1013000 

-0130 

748 

739 

721 

OAT 

a win 

04/04 

800400 

-0400 

aio 

UC 

7.73 

Germany Btmd 

8 750 

0704 

94.1000 

-0580 

781 

73? 

722 

My 

a 500 

0404 

803000 

*0100 T156T 

12.17 

1138 

Japan NoVW 

4500 

QMS 

105B180 

*0080 

190 

595 

4.07 


4.100 

1203 

97-1310 

+0.130 

434 

4.87 

4.66 

Nettierianda 

5.7S0 

0104 

852300 

-0570 

735 

7.48 

721 

Spain 

8.000 

0504 

805000 

-0500 

11.47 

1138 

11.10 

UKGta 

aooo 

QMS 

89-19 

-16/32 

584 

546 

531 


aTso 

1104 

85-25 

-37/32 

589 

568 

556 


9.000 

1008 

101-05 

-42/32 

586 

588 

558 

US Treaauy * 

7550 

0804 

98-28 

-1/32 

7.42 

7.29 

7.13 


7300 

1104 

97-28 

-1/32 

7.88 

1ST 

738 

ECU (flench Gout) 

aooo 

0404 

82.0900 

-0300 

567 

581 

533 


Italy 

M NOTIONAL ITALIAN OOVT. BOND (BTP) FUTURES 


FT- ACTUARIES FIXED INTEREST INDICES 


Price Me — 


Wed 


OB/* 


TUB 


Accrued xd adj. 


fUFFET Uni 200 m lOOfts at 100S 





UK GBte 

Sep 14 

change % 

Sep 13 

Merest 

ytd 


Sep 14 

Sep 13 

Yr. ago 

Sep 14 

Sep 13 

Yr. ago 

Sep 14 

Sep 13 

Yr. ago 

Open 

SeC price Chongs 

rtgn 

Low 

Esl vol 

Open btl 

1 Up U 5 years (24) 

119.40 

-030 

t!576 

1.75 

501 

5 yr* 

8.78 

892 

637 

8.94 

898 

695 

598 

892 

584 

Dec 9563 

9639 -013 

9722 

9535 

44001 

63432 

2 5-15 years (21) 

13566 

-097 

13799 

195 

990 

15 yra 

575 

899 

723 

399 

573 

735 

911 

895 

797 

Mar 9520 

9599 -098 

9535 

9520 

420 

3*0 

3 Over 15 years (9) 

152.13 

-138 

15427 

133 

891 

20 yrs 

567 

693 

731 

899 

573 

739 

894 

578 

798 







4 limdcemaotes (B) 

174.10 

-128 

17536 

2.78 

583 

hnxLt 

573 

561 

7.41 













5 AS stocks (SO) 

134.71 

-092 

13592 

1.67 

515 











■ ITALIAN OOVT. BOND (BTP) FUTURES OPTIONS (UFFE) Lxa200m lOOths at 100% 








_ 

— Inflation 5% — 


— 

— Inflation 10% 


State 

— — • CALLS — 

— 


PUTS — 


index-feted 







Sep 14 Sep 13 Yr. ago 

Sep 14 Sep 13 Yr. 

ago 



Rica 

Oac 

tor 

Dec 

Mor 

9060 

2.52 

229 

233 

290 

9700 

224 

2.07 

296 

3.08 

9760 

1.99 

197 

290 

338 


London cJMtag. HH Yorii m/d -doy 
t Qua) twAian B «AiMHk«a ok to ils pw i 
PH ac Ifi. UK m 3£nte, i 


Vtotor Lotto mtofrto tomtom 


SnwWgWw m w* 


Eat not total. (Mm 734 Poo 21 B. Pravaxa do fa ope, rt., Cato 8830 Pus >2C2 


Spain 

■ NOTIONAL SPANISH BONO FUTURES (MEFfl 


US INTEREST RATES 


UmcNteto 


Treasury Bite and Bond YWd, 
482 Ttooyaar. 



Sop 

Dec 


UK 


Open Seitprice Change High Low Esl aoL Open kit 

6620 85.75 -056 8634 85lSS 44J30 81.348 

8610 801 -083 8610 64.33 13520 47,731 


■ NOTIONAL UK COT FUTURES (UFFE)* CS0.000 32nds Oil 00K 


BOND FUTURES AND OPTIONS 
Franc® 

■ NOTIONAL FRENCH BOND FUTURES (MATIF) 



Open 

Sett price 

Change 

«0h 

U»w 

Est xat 

Open irriL 

Sep 

100-U 

99-17 

-1-07 

100-14 

99-20 

1144 

21815 

Dec 

Mar 

100-01 

98-25 

98-05 

-1-10 

-1-10 

100-08 

98-20 

87841 

0 

82712 

0 


■ LONG GILT FUTURES OPTIONS (UFFE) ES0.000 64ths Ol 100% 


Open 

Sect price 

Change 

Hgh 

Low 

ESL wol 

Open InL 

Sfcftn 

Price 

11222 

111.94 

-022 

11236 

111.82 

164958 

63923 

11122 

11596 

-024 

11138 

11584 

81.018 

93,995 

88 

110.62 

11028 

-024 

11582 

11540 

1.458 

4289 

99 

100 


Sop 

One 


■ LONG TCRM PBENCH BOND OPTIONS (MATIF) 


Dec 

2-28 

1-57 

1-28 


CALLS 


Mar 

3-Q2 

2-37 

2-11 


Dec 

1- 43 

2- 07 
2-40 


pins 


Mar 

2- 56 

3- 27 

4- 01 


, Cuts WKJ Pub 0B57. Piwteo CW/» own it. Clto 30806 Pvaa TTXa 


Stria 

Pnc* 

Oct 

- CALLS ~ 
Dec 

Mar 

Oc* 

— PUTS — 
Doc 

Mar 

111 

0.74 

1.58 

182 

ae7 

1.54 

- 

112 

534 

1.02 

- 

124 

241 

- 

113 

512 

098 

- 

- 

270 

- 

114 

- 

0.41 

- 

- 

329 

- 

118 

- 

022 

' 

- 

■ 

■ 


Ecu 

■ ECU BOND FUTURES (MATIF) 


Open 

80.44 

7094 


Sett price Change 
8012 -028 

7962 -0.28 


8044 

7094 


Low 

8012 

7666 


«oL tot* Ml 39.790 Fw 41.T4S . PMm day* open int, Cato SOOJSO Pub SB3.7B7. 

Gonnafiy 

■ MOTIONAL GERMAN BUNO FUTURES (UFFET DM250.000 IQOtha <* 100% 


Sep 
Dec 

US 

■ US TREASURY BOND FUTURES (C8T) $100000 32nda Of 10096 


EsL voL Open int 
749 6518 

1,353 6353 


Dec 


OP* 1 

89.10 

87.95 


Son price Change 
8664 -056 

87.84 -056 


Kgh 

8024 

88.00 


8658 

8785 


Esl vol Open bK 
148895 142721 

20 1105 


Sep 

Oee 

Mar 


Open 

101-02 

100-08 

89-13 


101-00 

1004M 

89-13 


Change 

♦0-03 

-0-03 


Kgh 

101-03 

100-08 

99-15 


Lew 

100-22 

89-28 

99-04 


Esl voi Open sn. 
27.312 106273 

506405 339,524 

2.816 6530 


■ BUBO FUTURES OPTIONS (UFFE3 QM250.OOO points of 100% 


Strike 

Oct 

CALLS — 

Now Oac 

Mar 

Oct 

Nov 

Ok 

Mar 


097 

1.02 128 

138 

543 

098 

1.14 

2.04 



0.77 1.02 

1.16 

588 

1.13 

138 

2.31 


0.18 

056 579 

594 

142 

1.42 

1.85. 

240 

to x* wd. 

I-J. 16830 Ms 7B78. Prwtoe day’s oprei a*. l'»» r “ ««««+ 



Japan 

■ NOTIONAL LONG TERM JAPANESE GOVT. 
(UFFE) YlOOm lOOttecrflOO* 


BOND FUTURES 


Open Close Change High Low Est vol Open ira. 
Dec 10604 10606 107.92 1188 D 

■ UFFE eomtoa trotted on APT. AS Open MM Rp. are far pwtoa day. 


UK GILTS PRICES 


hh_ — 1894 — 

Had HW Uw 


-Yield _ 

H Red PdceE *or- 


1994 


Tied — 1994 — 

(i) QPdceE -°r- taw 


Qatar Shea M ■ 


nmgxtMttt 

- 

tan jpe 3ae 1 W-B - - 

laVpc was — 

MirtltocIHUJ 

I4KIW 

13k* l«6fc 

ikbijUpc re«6tt 

Gncto lOpc IMB. 

ftWSOw teciasm. • - 

ri*ii34ii>ctw%;. - 
(flftlOWWW • - 
InwfrVpc 18878* - - 

heuSfK IW 

9%Pt<“ 

into 'MKT 
TnmfWto - 

14K190M 

IntolPiPCHt*. ■ 

Ocarael toW - -- 

htoatf.-pc WBJ — 


LIB 

1174 

80S 

US 

11.99 

tsao 

lie 

ilia 

160 

?.i* 

1184 

199 

a« 

1277 

1C 

754 

7.15 

IMG 

120 

1080 

AM 


551 KM! 
5.77 IE,*. 
573 0G% 
SO 101 
198 1095, 
7.25 108*3 
7.49 1MU 
758 10® Vi 
786 1041, 
196 97A 
uk noil 
8.1? TBS 1 ! 
&2« 10U 
147 I1R* 
654 IBM 
154 MAN 

aw MH 

177 1I6A 

164 

171 HI& 

6.76 1ICS 


nMtsffMrMn 

rue iiftac !“ 

DHiapt *•' 
CgaeW lOtoK 1930- 
T««n3fc»l9i9 ..... 
tec MOW 

OtotScrtOQ. v- - 

raw aw — - — 

7*79018 - • 
rpt.-an a •• 

s tecJW - 

tones*- - • - 

IteWH - 


971 

IBS 

HOB 

os: 

778 

040 

850 

040 


SBHTUtf 
Ml W. 
U0 B9tl 
aaS les,*. 

- Ml 
9 07 100& 

904 1174 

905 1MR 
SOI 

sis tea 

•oo ran 
099 »4% 
987 lOSfi 


i OSH 

88,; 
law 
H3*, 
117A 
17111 
1*71! 
112 * 
MXP, 
121 » 
H4* 
.. H94 
HI »31B 
I14« 
HJ WW 
-A IK 
HI 131* 
HI 1484 
-A 

-Ij us* 


-a nrt 

-* i?i* 
4 MMJ 
Hi 12H3 
.. . l»* 
HI H04 
HJ 13W 

Hi ra* 
-a iNA 

HJ 101* 
H2 '23* 
HI *«« 
-li 1374 


Tiw 1 1*21*3101 -4 
100)J MogFw 1*99-4™ 
1K,1 coneoiBR9<3p:2n)4_ 

TraH6W 2004tt 

JS ew8«,peJK6 

riM,i2ltfea®3-5 — 

mil 

TtowiiVpcaow^— 
p; itoi8«a«aoK#— 

1103 

1054 TKB*pc3008» 

10U 

117*2 

’KH 

SB* 

MB 

iiu Owr H to e T Wto 

2JA 2«W0®a9D9 

Ti? Ttou8lrt*S»10 

ioe£ ODwfipeinWttt — 

Hen tec 2012 ft 

Trn,5>zpc2U»42»- 
Tan to 20138 

7%J*3012-1S8 — 

Ton M,pc 19178 

113); Esttlto 2013-17 

S9H 

ios,; 

SOB 

JJ!n Coa«o!*«cc^- 

VtorL»nJ*as8 

mj <5a»3*2pe«l« 

TuaetoW® 

0 c* Oatofcftjpc. 

1050 Tran. 


1038 1271RAN 
4S5 7JE 70fl 
023 104 1023 

is u n 
iso uniD*® 

1048 032 119* 
047 802 910 

850 101 63*11 

1033 933 USB 
477 839 SOU 
1671 932 1288 

189 835101*10 


HI «« 
-» 80 * 
-1* 12S4 
-14 W5«a 
-1* 125*2 
-iA 1434 
-Hi 112)1 
-B nifa 
-14 U04 
-I* 119* 
-1* 151* 
-He »24li 


199 

an 

93*N 

-1% 

1WS 

738 

aw 

78% 

-li 

98* 

883 

577 

unS 

-1% 

1S8U 

5*1 

57B 

T0Z% 

-1* 

127% 

756 

531 

12* 

-1* 

93% 

aa 

571 

83QBJ 

-1% 

I17S 

850 

an 

«% 

-1 

114% 

an 

587 

101$ 


128% 

as7 

891 

128% 

-Hi 

159% 


an 

- «u 

Hi 

39% 

588 

- 40S 

Hi 

5H3 

522 

-56W 

-1* 

71 

art 

- 3*%d 


44% 

58B 

- 2B%N 

•u 

38% 

513 

- 

-* 

37% 


1104 

n*, 

102JJ 

bsb 

193* 
1194 
91 ■* 
KQ 
113% 

sea 

125% 

101 


93 

78* 

101 * 

1014 

734 

924 

914 

WB 

127% 


440 

MU 

55% 

35% 

28* 

zm 


to 1 * era 

4toC’B»_03iS 

2%pcm (783) 

2*2JK1D gtS) 

4Jri>fo*tt_4a5ja 

2PCVB 489S 

2*2pcTB ffW 

2%p:T1 (748 


236 

236 

XU 

158 

Ml 

30 

159 
171 
273 
275 

160 
179 
183 


A07imsl 
171 106% 
l»T«4d 

190 160* 
190107421 
188 156% 
199 150% 
19C 155% 

191 127% 

192 UB* 
193133%C 
191 108,% 
396 107* 


_TW1_ _1tt4_ 

Htott H tel ftteE rB' Hpa ta. 


to%aaDe>n% 2 mo 

tow Per 10 % pc 2009 _ 

8 framii*ac 2 D 12 

tatatoCW 0 >KcT 0 — 

tatelSSfi 

lto-W-2 

ikon tatacHpc 2011 . 
M*13*»c2008_ 

UmpedS^selmd 

UXto'KRl 

tancwwn^peaW- 

itotwr 3peV 

irtototogta3%K29Zl. 

4%ee«.2CC4 

uu in* sens t6*st sea 


9jQ 

an 

117% 



1<2A 

USii 

83? 

am 

U0& 



138% 

ioeii 

957 

958 

116% 



142 

IIS 

am 

m 

93% 

-1 

116% 

81% 

901 

- 

89% 

-% 

103% 

99% 

122? 

- 

136% 

-% 

11S% 

106% 

wn 

950 

Ml* 

__ 

re® 

13« 

1557 


125% 



149% 

liffj 

aa 

- 

36% 

.. 

44% 

33% 

958 

- 

32 

- 

48% 

a% 

mu 

sn 

113% 


136*4 

112 

544 

is 

67% 


78 

86% 


432 

131% 


t»% 

129% 

_ 

450 

126% 

- 

145% 

123% 

1213 

- 

13E 

— 

ia% 

T3*% 


m* u T a* to 


noWcaMOKa tai apjtoMnn. 


f Aoato baato *4 E» <Mdtod. OMi0 mtofanaa ■« rirewi in powtoa. 


6 Up to 5 years (2) 

7 Over 5 years (11) 

8 Al noda (13) 

Debenluree end Loans 


18550 
170.75 
171 J8 


-0.07 

18523 

096 

196 

Up to 5 yrs 

348 341 

2.58 

2.7B 

297 

1.72 

-549 

171.73 

095 

345 

Over 5 yrs 

342 3.88 

321 

172 

170 

102 

-045 

17227 

047 

3.94 


— 5 year yield— 



-15 year yield- 



-25 year yield 


Sep 14 Sep 13 Vr. epo Sep 14 Sep 13 Yr. ago Sep 14 Sep 13 Yr. aQ° 


9 DetW& Loans (78) 12S37 -132 127^5 258 7.84 958 9.75 758 9.80 9.68 

Avnaoa ipeoa radenpean yWdi on totoai Beene. Coupon Banda; IMr. D9t-74Wfr. Modem: Blt-ltWH, HWr 11* and over, t TtoQ. ytd Year as doe 


852 


8.73 937 


853 


GILT EDGED ACTIOTTY INDICES 

Sep 13 Sep 12 Sep 9 


Sep 8 


Sep 7 


FT FIXED INTEREST INDICES 

S«p 14 Sep 13 Sep 12 Sep 9 Sop 8 Yr ago High- LoW 

Qovi. Sace. (UK) 90.44 9150 91.12T 90.84 91.85 101.46 10704 90.44 GK Edged bargtons 111.5 880 111.7 100.7 76 B 

Ffend Marat 10753 10852 10757 108.19 10850 12405 13307 10753 5-day aamaga 985 911 93.8 950 925 

* ter IBP*, ( to an wi anl Saaaena ttfft dnee rranp O to o n- 127.40 pn«6 low 48.1B pn^5). Ftoad InMrBB high stnpt comptoeon: 13357 gl/1/94) . low 5053 gn<75) . flaw ICO: G onammanr Sectotto WW 
SB and FbmS hanar 1K2& SE acenty W ot l afr to a d 1974. t Conacdon. 


FT/1SMA INTERNATIONAL BOND SERVICE 


Used ore a* UM nunWtonri 


benfe lor eNch there i* an adequate eeconctey mataL Ltoeto 
BU OOm Chfl. YWd 


prices « 7!S0 pra on Saptonfiier 14 
BU Ofler Chp. Yield 


bauad BU Ofler Chp. VMd 


US. DOLLAR STRAIGHTS 


Urtat Kingdom Af 97 . 


Afaara Ronce7% 96 . 

Au5bSb8>2 00 

Bade ol Tokyo 8% 98 _ 

Be^ua 5*2(23 

9RSE7%97 

BtodiGtoO?] 

1996 


.550) 101% 101% -% 670 


OauiglConB Ai5%i98 . 

ChkaS^O* 

ConJ Bixcps 8 96 

C«a Fort» B*z 99 

0anak5%68 . 


East .torn Aria* S% 04. 

H5CB%SB 

EEC6%« 

S7%B6 

889% 97 

Bsc d, Ranee 9 9B 

&acEma9%9B 


&-tn Ba* Japai 8 02 _ 
Bpert Dar Com S’z » - 
Fedsri ms Meat 7A0 04 . 

FfrtaaiekW 

Rmah Eapot 6% 95 

Fate Man Cm* 6% «. 
GenBecCaF«3%96 _ 
GU*C3%96 . 


MBk Japan Fn 7% 97 . 
hlar ArarOn 7% 98 _ 
te6pE%Z3. 


JaaiD«Bt8%0l 

Kara Bee Par 10 96 _ 
Korea Set Foaar 6% 03 . 
LTCB Rn fl 97 , 




-% a»% wrB 
-% 1134 106* 
-li 17fi% 163% 
-i'* 173% 159* 
-% 116% 107% 
-% IWi 165* 
J, 1511 148% 
Hi 175% 154% 
-fl 145% 128% 
HI 157* 134% 
HI 152Q 128% 
Hi 129* 106% 
128ii 105% 


f 7% 97 . 

Oran 7% IS - 

Oser KoSotarii 8% 01 . 

f%te>C*oda7%» 

Portuto 5% 03 

Cteetae Njtoo 9% 98 

Qatar flwSU 

Stestay9%96 

S4S1099 

SNCF9%68 


SiN5WB>2 96. 
5*2 93. 


2%pC'B (392) 

:*S1CT6 (B1-E) 

zijpc^D aia 

2%pc-24tt__p7 .7) 

4%pC‘3BfJ —-J13S-1) 

Pro sp eeane ra ra d etnpa m gfla co prajactea mCttcn cl p) 1034 
and O 534. M FG*w U luiw Otes te snoa RPI awe lor 
fratexlng Oe 8 merths prior to mw end tana bean K&dtad » 

tefieto rebeang a( RPI id 100 si JtoexY 1397. cemenan tecsr 

3545. RPI tor January 1994: 1415 and tor August 199* 1445. 

Other Fbrad Interest 


SM*hE*ntB ] i96~. 

Tokjo Bac Rwer 6% 03 . 
7bfcjouaopoto8% 96 _ 

TopaM*r5%9e 

tinted Kngdom 7% 02 _ 

WW Bart 8% 99 

WcridBarfcB%97 


OHRSOE HWK SIRMOITB 

Auail 02 24 

Cradi Fencer 7% 03 _ 

Derma* 6% 96 

Dtoch* 8k FVl 7% 03 . 

EC 6% tO 

SB 5% C£3 

Frtr* 7lj ID ... 


U®BatavWurtfl%06. 

Hcna^S%» 

OtatoP, W 

Span 7% 03 

SaednSW 


KUO 

90% 

80% 


8JB 

to*saegBnMfti703 

_1000 

3*% 

64% 

-% 

735 

1D00 

101% 

101% 


729 

Abrid Bank 0 15 

— 2000 

19% 

20% 


733 

— 400 

to*% 

104% 


7.46 

Wcrid Bank 5% 03 ’ 

— 3000 

88% 

8B% 

-% 

773 

_ WO 

1(B% 

wz% 


523 

HtaddBrtB%0O 

— 1250 

107% 

106 

-1 

731 

1000 

84% 

w% 

4% 

737 







- 150 

101% 

102% 


633 

SWSS FHANC STRNBfTS 






1500 

10% 

10% 


a7i 

Aslan Dev Bek 6 10 ... 

wo 

100 

100% 

4% 

BOO 

-500 

so 

80% 

+% 

&S2 

Quid Biope 4% 88 

— — 250 

86% 

99% 

66% 

86% 

4% 

A96 

WOO 

87 

87% 

-% 

an 

Derma* <% 89 

_ 1000 

85% 

86% 

♦% 

523 










4% 


_ 300 

«7% 

WB% 


s 

Seeds Form 7% IB 

— 100 

107% 

109 


630 


96% 










-600 

00% 

80% 


am 

H»unddUt*rF*8%S7 

_ 100 

106% 

107 


CSB 

-193 

102% 

103% 


&fiS 

icetexj 7% 00 

— 100 

107 

106 


816 

- WO 

«B% 

VB 


aaj 

Kobe 6% 01 

240 

103 

104 

4*4 

4% 

533 

1000 

106*4 

106% 


637 

Qebec Hycfco 5 08 

WO 

85% 

86% 


&J2> 











805 

-100 

103% 

104% 


848 

WntoBa*503 

150 

96% 

86 


662 

-500 

101% 

101% 


779 

WcridB»*701 

— 600 

106% 

107 

4% 

871 

_ ISO 

107% 

107% 


729 







1500 

96 

88% 

4% 

7.84 

yasTwaans 






3000 

99% 

98% 


7.13 

BeptonS 99 

-75000 

iaz% 

102% 






4% 






«% 


1500 

90% 

97% 


742 

firtandB%86 

50000 

105 

105% 


333 

- 300 

104% 

1M% 


6JEE 

Wet Amct Der 7** 00 

.30000 

113% 

113% 

4% 

4J54 












-200 

101% 

Wl% 

4% 

7J0 

Japan Dev Bk 588 

1D0OOO 

103 

103% 


432 

-200 

101% 

102% 


6£B 

Jteen Dev Bk 6% 01 

120000 

110% 

111 


435 

3500 

80% 

80% 

+% 

a« 

NfcpenWTd5%88 

50000 

104% 

IS 

-% 

341 

-500 

103% 

103% 


737 

Nonate6%07 

150000 

104% 

104% 


350 












1360 

86% 

88% 

4% 

874 

Stton 5% 02 

125000 

10B% 

108% 

4% 

470 

-300 

101% 

102% 


725 

9*eden4%96 

150000 

101% 

101% 


4.13 

>000 

96% 

06% 


aoi 

HteUBa*5%02 

250000 

KD% 

103% 

4% 

<L£8 

woo 

101 

101% 


678 







3000 

96% 

96% 


BCB 

OTO1S1RMQWB 






_ 200 

10*% 

104% 


733 

Gretoxnce Llk 0% 08 LFr — 

_ 1000 

105% 

1DB% 


757 

200 

W0% 

101% 


873 

KB Deut hdstok 8% 03 IFr 

_ 3000 

100 

101 


048 

1000 

86 

86% 

4% 

aw 

waddBariiageift 

_ 1000 

wo% 

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FINANCIAL times 


THURSDAY SEPTEMBER 


15 1994 


COMPANY NEWSs UK 


Upturn in UK building materials market fuels the advance 

Camas 44% ahead to £4.9m 


By Andrew Taytor, 

Construction Correspondent 

iT wnwwi in sales and prices in 
UK building materials lifted 
pre-tax profits of Camas. 
Britain's fifth largest aggre- 
gates group, by 44 per cent 
from £3.4m to £<L9m in the first 
six months of 1994. Turnover 
grew from £174m to EflOm. 

The company yesterday 
announced its first half year 
figures since it demerged from 
English China Clays at the 
beginning of June. 

Mr Alan Shearer, chief exec- 
utive, said the first-half profits 
had from an faWai con- 
tribution from the Kost build- 
ing materials businesses, 
acquired in the US for $3L5m 
(EM-Sm) earlier this year. 

Camas, which is paying an 
interim dividend of 1.25p, 
expects to pay a total of at 
least 3.75p this year. Earnings 


per share rose from H98p to 
Up after adding back £L5m 
exceptional costs of the demer- 
ger. 

Profits from the European 
division, of which the UK 
accounts for about 90 per cent, 
rose by more than a third to 
£8.7m (£&5m). Sales volumes of 
crushed rock, sand and gravel 
rose by about IS per cent. 
Prices had increased by an 
average 10 per cent since the 
beginning of the year. 

The sales increase was 
mainly the result of a sharp 
rise in private sector house- 
building and increased private 
industrial construction, 
stone sales had risen by 5J> per 
cent, reflecting a higher level 
of road construction and main- 
tenance, ffrid Mr Shearer. 

The group's operations In the 
nhiirmfli inlands also increased 
pro fi ts, helped by two land rec- 
lamation contracts in Jersey. 


US profits -Increased from 
£804,000 to £L4m, Including a 
first time contribution of 
£747,000 from the forma- East 
businesses in North Dakota. 
Without thin wwrtrfhnHnn^ US 
profits would have. fallen from 

£804^)00 to £656,000. 

The decline was because of 

ftp mmplp tl QTi of 

and a subsequent delay in 
opening Denver’s new airport. 
This had led to the postpone- 
ment of private infrastructure 
protects, such as hotels, which 
were expected to go ahead 
when the airport opened, said 
Mr Shearer. 

Pro f i t s from MitYnaapfiHg and 
St Paul’s, the group’s other 
regional US business, were 
slightly higher thaw at the 


that this was Hhety to iedhcd 
to about £65m, with 80 percent 
gearing, by the year end. 


Net debt at the end of June 
was 275.2m, representing 34 
pa cent of shareholders’ funds 
of £223.1 m. The company said 


The UK has performed bettet 
than expected and the IRS 
worse because of the delayed 
opening of the Denver airport, 
which is likely to continue to 
affect the group into the first 
half of next yea. A, few eye 1 - 
brows also might be raised at 
the company’s report of 
increased costs in its nonrag- 
greg at e UK -bonding materials 
business. Elsewhere there woe 
few surprises. Pre-tax jaxifits of 
£L8m. tins yea and £2Sm next 
would put the shares on pro- 
spective multiples of more 
than 18 and 14, which is fair 
value but already in the price 
- which ahninid be expectedtor 
a company which published its 
demerger prospectus only four 

mrmfhg ago. 


ECC is flattered by land sales 


By Andrew Bolger 

The first Interim profits from English 
China Clays since It demerged hg 

construction materials arm, in June were 
flattered by a sharp increase in pro fi ts 
from land sales. 

ECC*s construction business increased 
sales from £l&2m to £37.9m and operat- 
ing profits from £7.4m to £21.6m in tiie 
six months to June 80. The group said it 
intends to sell off the business's land 
bank ova the next few years, subject to 
the state of the market 

The remaining land Is worth an esti- 
mated £65m-£70m at current market 
prices, but analysts estimate next yea 
will mark the last significant co n trib uti on 
to group profitability, with the remaining 
disposals being spread ova several years. 

Mr Patrick Drayton, finance director. 


said it had been decided to keep the con- 
struction business within ECC while it 
was being run down, because the profits 
and cashflow from the disposals would 
have greatly distorted the performance of 
the much «nnn«r flaimw- 

ECCTs group sales rose from £5I5m to 
£6l8m, including a full contribution from 
Calgon, the US speciality chemicals busi- 
ness it bought last June for £Z10m. 

Calgon, which now makes up the speci- 
ality chemicals division, made operating 
profits of £6.1m on sales of £78.5m. 
Growth was significant in paper chemi- 
cals, but water management sales were 
down, reflecting customer destocking, 
Iowa usage and c o m pe ti tive pricing. 

Earnings per share rose to 11.47P 
(9.45p). An interim dividend of 5.35p, 
combined with Camas’s interim, gave an 
unchanged total of 6.6p. 


ECC has cuts its workforce heavily in 
recent years, so should benefit qufcUy 
from any increase in volumes, even with- 
out hoped-for price Increases* Analysts 
were pleased by signs that this opera- 
tional gearing is already being demon- 
strated in Europe, but remain puzzled as 
to why the US pupa Industry s eems to be 
recovaing so slowly. With gearing of 
only 30 pa cent, Mr Teare has plenty of 
elbow room to pursue his strategy of 
growing the speciality chemicals business 
by acquisition. Forecast foil-year p r ofi t s 
of £L04m put the shares, down lOp to 38lp 
yesterday, on a p rospe cti ve multiple of 17. 
The premium to the market Increases if 
one strips out the co ntri b uti on to earn- 
ings from land sales. That seems reason- 
able, at least until the US situation 
becomes dearer. 


Blenheim ahead to £19m but shares 
fall on French trading warning 


By David Btackwefl 

Shares In Blenheim Group, 
Europe's biggest exhibitions 
organiser, fell by 12 pa cent 
yesterday as the group waned 
of persistent tough trading 
conditions in France. 

The shares dosed at 2X5p, 
down 28p, and almost half toe 
year’s high of 4Q5p. 

Mr Neville Buch, chairman, 
said that difficult trading con- 
ditions in France, which 
accounts fa half of turnover in 
a full yea, had intensified. 
"We should have reacted ear- 
lier,’' he said, warning that 
full-yea results would be 
Iowa than budgeted. 

In the six months to end- 
June, pre-tax profits increased 
from a restated £15.8m to 
£19.2m, while turnover grew 
from £825m to £99.7m. The lat- 
est figures Included £&3m of 
profit and £9Jm of turnover 
from acquisitions. 

Mr Christopher Crowcroft, 
finance director, said that an a 
Uke-for-like basis operating 
profits woe down 5 pa cent. 


Blenheim Orwy 


VlY 


Stare price (pence) 
800 




600 l~ 


350 


300 


2S0 


200 


L M .1 1 ntnaim.. \ 



•. : r l 


I t Isk ■■ 

.7 


- ” . - v‘t- " \ 

1 

% 


-'-y- : si 

V £; ■ 


reflecting the French siiuatLon. 
Tumover from all acquisitions. 
Inducting those completed last 
yea, accounted for £l&2m of 
the total, while operating prof- 
its benefited by £4.Im. 

In France business was down 
11 pa cent and the amount of 


space sold foil bf 13 pa cent 
Margins declined from 19 to 15 
pa cent, compared with total 
group margins down from 24 to 
22 per cent 

The decline in French busi- 
ness was reflected in a foil in 
the net cash inflow to £lQm 
(£20Sm). 

Mr Steffen Svenby, manag- 
ing director, said that reces- 
sion "struck a large part of our 
market and we were slow to 
react to what was going an. 
Customers were questioning 
the value of exhibitions, and 
when we convinced them they 
were worth doing they 
demanded increased value for 
money." 

The group is now restructur- 
ing its French operations, cut- 
ting nine divisions down to 
four. 

Business improved in. the US, 
text margins fell from 32 to 25 
pa cent In contrast the UK 
business Increased margins 
from 18 to 20 pa cent 

Net interest payable foil from 
£4m to £2Jhxi. 

Ra ml ng n per shfiTC itoHnu d 


from lL7p to 10.8p, reflecting 
an increase in the tax charge 
from 32 to 35 pa cent ami the 
low yield on the remaining 
cash from last year's £76m con- 
vertible preference share issue. 

The interim dividend - is 
increased from 3.4p to 35p. 

• COMMENT 

It will be some time before con- 
fidence in this stock can be 
restored. The management, 
how wearing hair shirts, 
clearly believed that exhibi- 
tions were relatively 1mm arm 
to recession. Their forecasts 
woe too optimistic, and they 
were not quick enough to 
adapt to (hanging conditions. 
While that has all changed, it 
could be ann*h*r six to nin« 
months before any good news 
emerges from France. How- 
ever, investors wflting to gam- 
ble cm a strong future for exhi- 
bitions might be attracted. If 
notidng else goes wrong, and 
earnings next yea reach 23p, 
the discount to the market is 
around 25 pa cent, and the 
yield is 6 pa cent. 


Devro af ? 
£14m seeks 
to expand 
range 

By James Buxton, . 

Scottish Cowpondant 

Devro International, the 

Scottish-based company which 
makes sansage carings out of 
the protein collag e n, made pro- 
tax profits of £U4m tu the stx 
months to June 30, a il? pa 
cent rise on tbe pro-forma fig- 
ures of the corresponding 
period of 1993. ; < 

Mr Ii W *" Align, rimlrnjgn, 
said the company was “con- 
tinuing to progress as 
planned." fit would to 

examine mipmtiiiillW around 
tike world “to extend and 
improv e our product range. 1 

Sales rose 3 per cart to 
£47J5m (£46-3m), of which 1 
per cent was due to exchange 
rate factors. 

Devro, which was founded 
by Johnson & Johnson, was 
floated on the stock exchange 
last yea after earlier being 
bought out b7 its managers. 

The company said it had 
d«ng well to toe first half to 
the UK, tbe US and the Austra- 
lian markets, to all of whkh it 
hag |d«i*a Bn* 

it suffered a 19 pr cent. drop 
in sales to Japan, mainly 
because of recession. 

New product tines are bring 
brought out for the Japanese 
and Scandinavian makets. 
New maunfoctortog jdant has 
been installed at BcfidriU to 
Scotland to increase output of 
collagen film. 

Devro is also testing a jmw 
product, aimed at the US mar- 
ket, for sausages of up to 
45mm diameter, compared 
with its present limit of aomm. 

Despite increased raw mate- 
rial costs, operating margins 
rase from 27 pa cent to 29.5 
pa cent Interest received of 
£100,000 (£470,000 eharge) 
reflected increased cash an the 

Kalnnwi sheet of £9 .2m, find 

£42m at Decentba XL 

Earnings per share were 
7.9p (0.4p) and' an increased 
interi m dividend of 2 jfip is' 
being paid (2-08p). 

• COMMENT 

Devro is a conservatively run 
compa ny whose ftature ties in 
the gradual.. aogkm by colla- 
gen of traditional gut sausage 
casing. To speed up the pro- 
cess it is developing .several 
new products for its far-flung 
markets. Its results were to 
line with expectations, but the 
shares foil I9p to 230p at a 
poor day for toe stock 
exchange. There was evidently 
some profit taking as the nwr- 
ket realised that Devro’s oper- 
ating margin wfll have to be 
even more powerful to offset 
the rising tax charge of the 
next few years. Some analysts 
are questioning its growing 
cash pile, but Devro insists it 
is unda no pressure to reduce 
it, though it does not rale out 
acquisitions. Analysts are 
sticking to their forecast of 
about £89.fim for the full yea, 
meaning earntogs pa share of 
l&5p and a prospective multi- 
ple of 14. That suggests a 
period of consolidation for 
Devro. 


Compagnie Fmanc&re Ottomane Group 

Unaudited Group Remits for the Six Months 
tn an Imif» 1 994 



bncnneel 

Badeev 

Blsldaf 

BmImm 

On«o Rcenft 

Omptcnt 


OntriAi Ttarfcrv 


June 1994 

June 1993 


lane 1Q94 

Jane 1993 

Tone 1994 

tone 1993 




FRF TOO 

FRF TOO 

FRF TOO 

FRF TOO 

FRF TOO 

FRF TOO 

Not imomat ieoesM 


4.605 

204453 

ll<9» 

217322 

119335 

Ibvmobm taeam 

Oeba (loaei) oo ah of 

18,927 

24^28 

61.135 

38339 

80362 

63351 

iavanm* and HmhI vm 

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(5.069) 

16JS9 

47412 

6U7S 

4230 

77357 

tMadfarmmnaB 

(22545) 

6M9 

- 

- 

P2343) 

6389 

CoomriaMa Income 

216 

142 

2032S 

31449 

21341 

3U91 

RanlJocooK 

4,724 

4,918 

53 

28 

4,777 

4346 

Fuu^n cuiiuRCy uriiw 

1,133 

4g663 

83.168 

7309 

84301 

11372 


6.755 

62J 04 

421446 

2531617 

427301 

315,721 

OpmtlqapaaM 

9.904 

1073 

100,012 

155,149 

109,91* 

169322 

Qnf|(i Hm > bad ad dtaobtfUL ddm 

. 



14J9S 

11430 

«-595 

12.433 

OpecMins praM bdbn bn 

(3449) 

47.731 

306439 

86335 

303390 

133,766 

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1.653 

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42347 

133.740 

45362 

OpwidBi pnli a&w ns 

(4^0 


174^452 

4X388 

169350 

88404 

Net oantatiaa ton 





(172316) 

(I53W) 

LnTwfli«l>«ftei r«t«iB«d 







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FRF gW6^ 

FRF 72320 

Ferntf pvitaw 





FRFjO^ 

FRFJ£gL 

CgUlem 





FRF 1351.730 FRFJJ^g^ 


Exchange Rile TUFRF 5,461.04 (1993:1,86156) 

Hm group operating profit for tbe half year to Jane 1994 increased by nearly 93% compared with die first batf of 
1993. But after allowing for tbfl exceptionally large act translation loss arising an funds employed in Turkey, me 
group recorded a small km. In accordance with tbe group's accounting poticka (fan net nrriinign lorn is shown in 
the profit and loss account. 

Despite the monetary crisis ha Turkey, tbe results in local currency of Osnanli Bwnl a ri were exceptio na lly good. 
Interest earnings wen at record levels as die bank n a mfrfarri a high liquidity position, due in part to a sharp 
reduction in customer ionn demand aod this liquidity was employed on the interbank market when: op to the end 
of May interest rates were extremely high. Tbe foreign currency gains reflect the fore ig n exchange position 
m ainta ine d by the bank and large sales of foreign exc hang e 10 castamei a during the crisis. The Turkish lira, 
which had fallen at end April by aver 140% against die Reach Rue, has st ren g the ned slightly since but at the 
half year showed a depreciation of 122% compared with 31 December 1993. This has led to the lou on 
shareholders' fends shown above. 

Outside Ttatey, tbe group’s investment*, whkh anomaly invested in bands and money market Tmmmreiita, are 
carried at market value and the foil is bond markets during die first half of the year advtumly affected the value 
of our portfolios. This b reflected in the reduction hi Investment income. 

Oondfrfrffll wwtrfmm m ln» rtiHlmlf jg Ttofa-y mfl jp fh» t i)* wn utrf m r t wt whiter th*T ltT * r *S *1 1'tr* 

has been more stable following Government measures anootmeed in April, farther weakening of die currency is 
likely by the year end at inflation continues to increase by mote than 100% per annum . Outside Turkey, die 
prospects for an impwvtiaeat In return* pa Hrwatmcata are not eac owraging , h fa therefore expected that the 
group will achieve a fall year net result significantly kwer than that of 1993. 

As b customary, no interim dividend is to be paid. 


W Canning doubles 
to £3.64m at midway 


By Caroflne Southey 

W Canning, the speciality 
riwawteaii! company which sold 
its electronic components dis- 
tribution division to July, dou- 
bled pre-tax profits to £3.64m at 
the interim stage. 

The Birmingham-based com- 
pany reported increased turn- 
over fa the six months to Jane 
30 af £60Jhn (£56. lm), tnriurffwg 
£S4J9m (£33 Jm) from speciality 
chemicals anti vast im (pia nni) 

from electronic components 

distribution. 

Mr David Probert, chairman, 
said that as a speciality chemi- 
cals company. Canning 
intended “to remain to a«d 
close to its core businesses. 


which are capable of signifi- 
cant organic growth.” 

The company was in a stnmg 
position to finance this growth 

and to make acquisitions “if 
suitable opportunities arise.” 

At the end of the period net 
borrowings woe £10 2m 
The group’s chemicals divi- 
sion raised operating profits 
from E2-9Sm to £3 -29m. The 
sale of the electronics compo- 
nents Side, Winch m«d«» gl-ggm 
(£777,000), win lead to a £33m 
exceptional loss in the 1994 
accounts, related to goodwill. 
The interim dividend is 
t&Mp - Basic earning s per 
sharerose to 75p (2Jlp). Last 
year’s figure, included an 
exceptional item of 3J3p. 


Co-op 




aided by 
provisions 


ByAfWoriSmRh 

A combination of Iowa 


debts arid hitter operating 
income ' helped Co-operative ■ 
-Bank to n 37 per cent rise’ to - 
jfretex profits fck the yeat to 
late July. ■ - ' : ' J 

■As /WeD as announcing the. 
Interim results, : the bank 
sought -to maerilna its com- 
mitment to service for custom-, 
era liy, lauhdbtog a guarantee^ 


wfll pay £10 compensation each 
■tfefe it fails to meet the stan- 
r dods if bas set itselL . 

rfftfo-tox profits rose ate 
p£LL05m (£&07rii), w hfla - {spri- 



moim-fell by 15 pa cent to 
feKEOftm (£19^3m). 

Mc Teny Thomas, managing 
fflrector, said he expected pro- 
visions to foil further though 
tiie scale of reifoctto ns would 
depend' -oai 'economic improve- 

' hi writ' . 

He said that vrtrfle Monday's 
05 pdroentage pofat rise in the 
base rate would make balances 
field by the bank worth more, 
it would not give an oppoftn- 
nSty to widrai intered: margins. 
He pr adieted iv inDm riiig pres- 
sure on margins, suggesting 
that they might foil a further 
0 J. percentage paint In tbe sec- 
ond half of- the yea. 

Despite the Iowa net inter- 
est mar gin of 45 per cent (45 
per cent), net toterest 


Terry Thomas: expected jwuvMons to fall further 


lYsvarHunpMu 


increased to £71 5m (£69.4m) 
partly as a result of higher 
retail loans and deposits. 

Non-interest income which 
Includes commission from 
Visa, the card payment system, 
rose by KL4m to £525m. 

Expenses rose by 5 pa cent 
to £96.4m (£91. 9m), reflecting 
particulaly an increase in 
costs from losing and relocat- 
ing staff as a result of the 
bank’s re-organisation. The 

htmV fa ftrpnndrng the ti umh er 

bf its automated banking 
kiosks from 16 to 30 by the end 
of toe year, but does not expect 
to open any more branches. 

Mr Thnnian nl«n mrid that the 


bank’s five guaranteed service 
standards for its 2m personal 
cus tom ht s covered areas such 
as dealing correctly with stand- 
ing orders and direct debits, - 
and swift decisions on over- 
drafts or personal loans. 

It amounted, he said , to a 
challenge to tbe other banks to 
rrffar i^milar guarantees. The#, 
bank estimates there will be^~ 
significantly fewer than 40,000 
errors a year. He dismissed the 
promise made by Midland 
Bank of £10' compensation for 
each error made in transfer- 
ring a customer’s current 
• account from another bank as 
a “nine days’ wonder”. 


Defence of Enterprise 
offer cost Lasmo £24i 


By Pe n ny HotDngor 

Three leading financial 
Institutions received about 
fiRre in fees to. defend the loss- 
making oil explorer,: Lasmo, 
from a hodfie £L6hn Sid bj^-' 
rival Independent Krterprlse 
PEL 

. Schroders, Goldman Sachs 
and NatWest Securities were 
paid about two-thirds of the 
total £2ftn in Ud costa, said Mr 
Joe Darby, chief executive. The 
rest went in charges such as 
legal foes. 

The foiled, bid has cost share- 
holders to the two companies 
almost £50m. Enterprise dis- 
closed last week that its costs, 
including an £I85m writedown 
on the value of its 10 pa cent 
stake in Lasmo, would come to 
£24m. 

Lasmo’s comments came as 
it announced first-half net 
fosses of mm, against a £22m 
profit last time. 

While the hid costs appeared 
to push the company into the 
red, these woe more than off- 
set by a £38m gain on asset 
disposals. Turnover fell from 


£309m to £306m. partly due to 
the; Iowa, ofl price. 

1 The' results woe largely hi 
line with analysts’ expecta- 
tions. Yet the market was 
impressed, with the. cost-cutting 
- adhleved in the period/ Operat- 
ing costs pa bard feflfry 15 
per cent .to £3.70. Mr Darby 
said h£ ekpected average costs 
for the year to fall to b e twee n 
£350 and £355 pa band. 

By 1M7. unit operating costs 
. would be 25 pa cent below 
1993 levels. . 

now bad financial 
strength to pursue exploration 
nppor tnifitiiS and to develop 
its existing reserves,, he sahL 
The company aimed to produce 
about 210,000 barrels of oil 
equivalent a day by . 1996, 
against the cmxerit 187,000. . 

Gearing fell from 69 pa cent 
to 37 per cent in the first half, 
largely due to a £219m rights 
issue in the spring: Mr Darby 
estimated, that annual spad- 
ing on exploration would aver- 
age some £50m ova the next 
tiuee years. 

Of the 14 wefls drilled to the 
first half, eight woe successftil 


and tnduded two substantial 
finds in Algeria. Development 
expenditure was static at about 
£LL7m (£H9m). 

There- was no Interim divi- 
dend 0-3p)- The loss per share 
Was 2.Q) (25p profit). 

• COflHBNT 

Lasaro yesterday painted a pic- 
ture of a company which was 
c onfident in its strategy and 
future. The City was inclined 
to agree. However, even after 
all the surgery, tiie company’s 
finding costs wfll still only be 
on a par with its rivals. .This 
highlights a fundamental prob- 
lem for exploration co mpanies , 
such as Tewno and Enterprise, 0 
which have much. Mghw find- 
ing costs than the majors. 
After losses tills yea, Lasmo 
should he Just back in profit in 
1995, assuming pfi prices of $i& 
to 1996, a rising production and 
earnings profile should lead to 
substantially improved profits. 
The most tempting aspect for 
some investors, however, 
might be the.very real prospect 
of & foreign income . dividend 
this yea. 


Woodchester plans to 
invest I£120m surplus 


BySbnon Davtes 

Woodchester Investment, the 
Dublin-based tenting and bank- 
ing group, said yesterday that 
it had I£12Qm (EUBm) of sur- 
plus capital which it planned 
to Invest in its core business. 

The surplus capital has 
proved a drain on earnings, as 
felling interest rates cost tiie 
group about I£3m at the 
interim stage, and resulted in a 
d««Hn« fn pre-tax profits from 
KDELfen to I£L45m for the first 
half of 1994. 

Mr Dan O'Connor, deputy 
group nhinf executive, said 
Woodchester was intereriedin 
expanding its UK operations 


through acquisitions. At pres- 
ent about 75 pa cent af UK 
p ro fitH came from vehicle fin- 
ancing, with the remainder 
from gnmiT unit fiminwt The 
existing UK operations saw sig- 

rilflffOTri 1 tmpr ^iwgii XEL jKOf" 

its and new business during 
the period. 

Woodchester is in a process 
of consohdatkm afla a radical 


restructuring of its Irish 
operations, which resulted in 
r g u ft n reor ganisation costa last 
yea. - The reorganisation, fol- 
lowed a period of rapid expan- 
■ st c ai. 

Mr O ’Connor mH the redun- 
dancy programme had been 
completed, and its provisions 
would be "rhore than ade- 
quate”. . . 

Credit Lyonnais increased its 
stake from 48 to 53 pa cent 
daring tiie period, and Wood- 
chester said the French bank- 
ing group was committed to 
developing its Irish subsidiary 
as Its vehicle finance arm in 
Europe. 

- Woodchester is taking on 
Credit Lyonnais Leasing 
Europe's businesses in Den- 
mark and Portugal, and is 
looking to extend its 
operations in other European 
markets. 

It expressed confidence in 
the fixture tgr increasing Its 
ifividend by 16 pa cent to 259p 
(258p), to spite of earntogs fall- 
ing from &37p to 553p. 


Country Casuals 
chief quits over 
contract terms. 

By Peggy HoKnger 

Country Casuals, the ctothtog 
retailer, yesterday announced 
the departure of its chiHlr nmii 
and chief executive, Mr John 
Shannon, Just a day after the 
group saw more than a fifth of 
Its market value wiped out fol- 
lowing a profits waiting. 

The group said Mr Shannon 
resigned when the board 
refused to extend Us contract 
It is believed that Mr .Shan- 
non, who was on a one-year 
zoning contract;- had prosed 
for a two-yea deaL He wEU be 
replaced as chief exec utive by 
Hr Mali Bonce, finaiK^iflreo- 
tor. Mr Torn • A dam, bfcjjaeg 
non-executive chairman? 

Mr Shannon was ^0 of 
three directors who. bought 
Country Casuals from Coats . 
Viyefla as part of a manage- 
ment buy-out to ISStr^He 
was da a salary of 
with a one-year ralBipfedfc 
tract, and is expertaE:- to : 
receive a payment OT at least 
£145,000. ‘ 


Flotation talues Compel at 
£19m witlt 125p share price 


By mchavd Wolffe 

Shares in Compel Group were priced at 12Sp pa 
shoe yesterday in a placing with institutional 
Investors which values the computer systems 
and services company at CtiMftm. 

The group is issuing 2.48m new shares to raise 
lA-im, with wrifiting shareholders apfifag 4J2m 
shares, worth £5LI5m. Directors and their fami- 
lies will retain about 24 per cent of the enlarged 


Mr Neville Davis, chairman and chief execu- 
tive, said; “this is funding working capital needs 
which the business requires to keep growing: 
We have made acquisitions ova recent years 
and continue to look for more, but we have 
no thing m twmri at the moment.’' 


existing UK netw o rk of seven offices, with, a 
new office planned to open in the City: 

The proceeds of the flotation provide a partial 
exit far Compel's venture capital investors, 3i 


and Lloyds Development Capital- It Is also 
expected to boast the share option scheme for 
employees, a third of whom axe already share- 
holders. 

Th e com pany, which focused on corporate cli- 
ents after a management buy-out to 1987, pro- 
vides computer systems to blue drip and. public 
Seda customer? mriudfng Glaxo, Manchester 
City Council and the Post Office. 

The group announced a sharp increase to pre- 
tax profits from £ 604500 to £25Qn in the year to 
June 30, following a wide-ranging restructuring 
which saw staff numbers cut by M pa cent to 
227. In the same period, turnover rose from 
£435m to fSL&o, with operating profit fitting 
from £898,000 to £2L36m. 

At the placing price, the historic p/e ratio is 
1248, with a notional ttridaui yield of 4 pa 
cart. _■ 

The issue is sponsored and Mly underwritten 
by SodfitA Gtofirale Steams Turnbull Securities, 
which is Hi> broker to the ptarfng 


DIVIDENDS ANNOUNCED 


Comb - . Total 

■Guram Data of porting . ' for": 
payrnwit payment dMdand 





B7W 

(Mor 

Carats 
Canning (MQ , 
CapMfeHle . 


Jnt 

-tin 


ECC 

- — I 

.1 miiiy rugn 


Jnt 

Jnt 

Jnt 

Jrt 

Jnt 

Jnt 


rac Mgti Inconw fin 

G«nt(8R) — — — flo 

KWnwort Smafl Int 

Lambwt Hcwarth im 

tanw Int' 

Uncy§ 

l-o n don FotMt 

P«ypk»e 

Prudanfial 
— ■ 

Rugby Eatat** 

8tBt-nn» 

Tqr 

Vardon _____ 



Woodetaater , 


-Int 

Jnt 

Jnt 


2 

3J3 

e 

1^5 

2JM 

21 

2^5 

555 

1 . 1 * 

2.73 

15 

1^5 

1.1 

225 

in 

4.7 

22 

1^9 

45 

T5 

0.88 

452. 

05t 

0575 

238* 


Nov 2 
Dec Ifi 

Dec 30 
Dec 9 
Dee 30 
Dee 2 
Oct 28 
Decs 

Oct 3 
Oct 2a 

Oct 28 

Nov 1 
Oct 27 

Nov 4 . 
Oct 28 
Nova. 

Nov 24 
Nov 30 
NOV 16 
Nov 4 
Oct 31 
Nov 18 
Nov 16 







— COMPANY NEWS: UK 


•' , > Radical restructuring of port operations helps achieve 29% rise £4m loss 

AB Ports advances to £38m a l Gent 





>risc 






By Simon Davies 

Associated British Ports 
continued to benefit from the 
radical restructuring of its 
port operations, with taxable 
profits rising 29 per cent on a 7 
per cent increase in port reve- 
nues. 

The port operations' work- 
force has fallen from 9,500 to 
1.800 since 1983, and with its 
reduced and largely fixed cost 
hose, increasing revalues flow 
comparatively directly into 
profits. 

Pre-tax profits for the six 
months to June 30 amounted 
to £38m, up from £29.4m. 
despite only a £i.8m increase 
In turnover to £99.4m. 

Severance costs fell from 
£4m to £800.000, with 30 lay- 
offs so far this year. However, 
there were no fixed asset sales, 
which had provided £L5m of 
profit in 1993. 

A number of high turnover 
operations have been closed, 
but the ports saw total 
throughput increase by 4 per 
cent during the period, rising 
from 53m to 55m tonnes. 

Sir Keith Stuart, chairman 
’ was up-beat about the perfor- 
mance, saying: “prospects for 
the group are excellent, with 
our ports well placed to take 
advantage of the upturn in the 
UK economy and expanding 

London 
Forfaiting 
declines 
to £7.34m 

By Christopher Price 

London Forfaiting, the 
specialist trade finance group, 
yesterday reported a 30 per 
cent drop in pre-tax profits 
from £10.5m to £7.3An for the 
first half of the year- 
The company blamed vola- 
tile conditions in the eurobond 
market, particularly in the 
emerging markets, for the 
downturn. Trading income 
declined 5.5 per cent to £14-7m 
(£15.5m). while earnings per 
share fell from 8-03p to &33p. 
The interim dividend is main- 
tained at&2pi 

Hr Jack Wilson, chairman, 
said that the core export 
finance business, which is 
involved in making fixed-rate 
loans, hod performed welL 
In particular, the eastern 
European export market had 
turned up, and the company 
was continuing to see good 
returns from its financing of 
European exports to Asia and 
South America. To this rad, 
the group had opened an office 
in Stockholm to tap the Swed- 
ish export finance market. 

The transferable loans busi- 
ness was another bright spot 
New loans worth more t han 
SI bn had been arranged so far 
this year for Asian borrowers. 

These included London For- 
faiting's first foray into the 
Japanese market with a SI 00m 
transferable loan for Takefqji 
Corporation. There was also a 
$l70m floating note facility for 
a Bangkok bank. More than 80 
per cent of the company's rev- 
enues are earned overseas. 

However. Mr Wilson said 
that the continuing uncertain 
bond market conditions made 
it impossible to give a predic- 
tion on current trading. The 
fall (n profits had been well 
flagged by the company, which 
had warned at the annual 
results of tough trading condi- 
tions. hut came in ahead of 
market expectations. The 
shares climbed lip to I75p. 



Sir Keith Stuart: prospects for the group are excellent 


AsMayAWarootf 


world trade". 

The Southampton Container 
Terminals, jointly owned with 
P&O Containers, saw a 22 per 
cent Increase in container 
throughput, and trans-ship- 
ment cargo rose 50 per cent, as 
it took business from other 
European ports. 

Profits from port operations 
rose from £28.4m to £35.7m, 
and income from the feagfag of 
port-related property and land 


increased from £10.2m to 

The company has invested 
consistently in its port and 
transport facilities, and plans 
to maintain annual capital 
expenditure at between £S0m 
and £60m. 

During the period, it 
invested £23m. Net borrowings 
rose to £349m (£345m at Decem- 
ber 31); however, gearing fall 
from 53L5 per cent to 51.4 per 


cent, and uncapitalised interest 
costs were £15.2m (£17.1m). 

Property investment income 
rose from £5.4m to 55.8m, in 
spite of the impact of last 
year’s property sales. 

Property development profits 
fell from £lm to £600.000, but 
the sales programme is likely 
to accelerate over the next one 
to two yearn, as ABP refocuses 
on property adjacent to its port 
operations. 

The interim dividend is 
being increased from l.75p to 
2p. with earnings per share of 
7.6p (5Jp). 

• COMMENT 

First it was obstructive labour 
practices, an d thwn its dabbling 
in the property market, but 
ABFs future is now looking 
better than ever. With high 
operational gearing, profits 
will rapidly outpace a steady 
recovery in revenues. ABP 
should continue to win busi- 
ness from the co ntta ap t and 
smaller British ports, while 
trade continues to expand with 
the growing economy. Ana- 
lysts are looking for up to : 
£78xn profits for the full year. 1 
putting the shares on a pre- 
mium p/e rating of 17.4. Given 
the strength of core earnings, 
and the renewed for 

property profits, there should 
be more growth to come. 


Northern motor retailers merge 


By Chris Tighe 

Two of north-west England's 
best known motor industry 
retailers, Ron Stratton and 
Company, based in Knutsford. 
Cheshire, and lan Anthony, of 
Bolton, Greater Manchester, 
have merged. 

Ron Stratton concentrates on 
low mileage specialist cars 
such as Ferrari. Rolls Bentley, 
Mercedes and Porsche, while 
Ian Anthony is a BMW dealer- 
ship. 

Mr Stratton and Mr Jon 


Capital Inds 
up slightly 
at £2.5m 

Pt e-tax profits at Capital 
Industries, the financial ser- 
vices and packaging materials 
group, edged ahead from 
£2.4lm to £2.5lm in the first 
half of 1994. a period of consoli- 
dation, said Mr David Rhead. 
the chairman. 

The industrial side contrib- 
uted operating profits of 
£2.62m t£2£2m) on turnover of 
£35 An (£32- 4m) while financial 
services contributed a static 
£282,000 on sales of £2 An 
(£2 .23m). 

Earnings per share improved 
from &9p to 7.2p and the divi- 
dend is lifted to 2.1p (2p). 

Caird cuts losses 

Caird Group, the waste man- 
agement company, yesterday 
bore out the chairman's year- 
end forecast that a recovery 
was under way. reporting a 
reduced pre-tax loss of £241,000 
for the six months to end-June. 

The improvement, achieved 
cm turnover down from £8.79m 
to £7.?5m, compared with a def- 
icit of £25.im. At the operating 
level there was a profit of 
S2S1.000 (£l-27m loss). 

The group's bankers have 
waived interest during the 
period and have accepted 
instead a profits-related pay- 


FINANCIAL 

REGULATION 

REPORT 



FT 


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Crossley, his sales director, 
will join the expanded Ian 
Anthony (Holdings) board of 
directors headed by Mr Ian 
Blenkinsop, founder M man- 
aging director of Ian Anthony. 

Mr Stratton and Mr Blenkin- 
sop are equal partners in the 
merger. Their current 
operations have a combined 

annual turnover Of CTSm 

Montague Private Equity has 
taken a minority shareholding 
in Ian Anthony (Holdings) and 
will help to fund a new show- 
room offering the range of cars 


ment for the two years to 
December 1995. Consequently 
the interest charge this time 
was cut to £522.000 l£749,Q00>. 

Losses per share were 0.42p 
(45J5p). 

Lambert Howarth 

Shares in Lambert Howarth 
Gronp fell 7p to I43p yesterday 
after pre-tax profits tumbled 
from £784.000 to £442.000 in the 
first hall of 1994. 

Turnover was £2.7m higher 
at £31.4m, with the greater part 
attributable to acquisitions on 
safety footwear. Earnings per 
share fell to 3.1p (6.3p) but the 
interim dividend was held at 
2J!5p. 

Roskel edges ahead 

Roskel, the specialist 
suspended ceilings contractor 
and partitioning and ceilings 
distribution group, reported 
pre-tax profits marginally 
ahead from £528,000 to £532J)00 
for the six months to end-June. 

Group turnover for the 
period was up at £23. 7m, 
against £21.7m which included 
£ 1.45m from discontinued 
activities. Earnings were 2£fp 
(2.23p) per share and the 
interim dividend Is maintained 
with a L3p distribution. 

Stat-PIns static 

Stat-Plus Group, the legal sta- 
tionery, printing and publish- 
ing gronp, turned in virtually 
unchang ed pre-tax profits of 


in which Stratton specialises, 
alongside Ian Anthony’s exist- 
ing Bolton BMW showroom. 

The Knutsford operation will 
continue to trade under the 
namp Ron Stratton and Com- 
pany. 

Over a period of 20 years Mr 
Stratton, whose past customers 
include the A1 Fayeds, Mr 
Eddie Shah and ex-Beatle 
George Harrison, built up the 
largest Ferrari and Rolls Boyce 
dealership outside London 
before selling out to Fendragon 
in 199L 


£lJ31m for the first half of 1991. 
a gainst £l-S2m last time. 

Sales rose by 3 per cent to 
£&2m. Earnings per share were 
5.6p (5.7p) and the interim divi- 
dend is raised to 4J2p (4p). 

Try jumps to £0.25m 

Try Group, the construction 
and housebuilding company, 
reported a jump in pretax prof- 
its from £68,000 to £232JJ00 in 
the half year to June 30. For 
1993 there were losses of 

£2.17m. 

Turnover of continuing 
operations sUpped to £60.lm 
(£61 .9m) hut operating profits 
rose from S336JHM to £486,000. 

Earnings per share came 
through at 0.34p (O.OBp) basic 
and 0.3?p (0-Up) fully diluted. 
The interim dividend is held at 

0-5p. 

Era loss at £2.26m 

Era Group, the specialist 
retailer and distributor, 
reported slightly reduced pre- 
tax losses of £2. 26m against 
£L59m for the six months to 
June 30. 

Turnover was flat at £29 Tm 
(£29.2m). Losses per share 
came through at 0.72p (2-9Ip 
restated). 

Arlen turns in £1.2m 

Arien, the electrical manufac- 
turer and distributor, has 
achieved a pre-tax profit of 
£1.21 m for the first half of 1994 
on sales from continuing 


PUBLIC WORKS LOAN BOARD RATES 

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CREDIT LYONNAIS 
USD 60000000 
FRN Undated 

Bondholders are hereby 
informed that the rate 
applicable for 
dm Coupon N°6 has been 




for the period, starting on 
12th September 1994 until 
12th March 1995(indusive), 
. and represents a period 
of 182 days. 

The Coupon N°6 will be 
payable at the mice of 
USD 30.902,08 on 
13th March 1995 
The Principal 
Paying Agent 



US 853,750000 

.i". 

& 

European Investment Bank 

floating Rate NtAea due 200S 
For il* penai fltci Sr?;mbiT IS. 185* Up 

Karrii ste -he Soles »-ZI &rry as 

aOmei rce ci per iixam »nh 

a3 bs»W. isjiiS cf T5 S22A p vt 
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AfnnSanlc 

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BanquE Paribas 


£4m loss 
at Gent 
after retail 
withdrawal 

By Richard Wofffie 

A withdrawal from retail 
activities led to pre-tax lasses 
ol £4.28m at SR Gent, the 
Marks and Spencer garment 
supplier, for the year to June 
30. 

The grotto reported a down- 
turn from pretax profits last 
year of £L52m, despite turn- 
over rising 7 per cent from 
£120 -5m to £129.3m. 

Retailing losses stood at 

£10^m. Including a provision 
of £7m of exceptional costs to 
cover the sale of Susan Woolf, 
a chain of women’s fashion 
stores. 

However, the group’s core 
business of garment produc- 
tion posted a 20 per cent rise 
in operating profits to £7.12m 
(£5.93m), while turnover rose 
just 1 per cent to £ 117.5m 
(£ll6m). 

Mr Peter Wolff, chairman, 
said the Barnsley-based group 
was completing a strategy of 
moving 50 per cent of its gar- 
ment production overseas. The 
co m p an y owns 25 per cent of a 
manufac turin g company in Sri 
Lanka, with a workforce of 
14,000. “We are going back I 
into our core business of man- 
ufacturing, “ he said. 

Demand from Marks and 
Spencer is expected to rise this 
year as the group enters the 
menswear clothing market for 
the first time. The company 
has also sera growing demand 
for cinema-related merchan- 
dising in children’s clothes. 

The pre-tax profits figure 
was struck after net interest 
charges np from £i.93m to 
£2.4m, although the share of 
associates* profits rose to 
£758,000 (£430,000 losses). 

The shares closed np 6p at 
75p yesterday. Earnings per 
share fell from 3J?p into a loss 
of i2.6p this year after excep- 
tional costs. 

The final dividend was again 
135p for a total of 2£5p (2.1p). 


Polypipe maintains 
growth with 20.5% rise 


NEWS DIGEST 


operations of £15.1m. 

Earnings per share were 
Lip. The company, which 
came under the control of a 
new management team a year 
ago, said comparisons were dif- 
ficult since the business has 
been reorganised and the year 
end changed. But it stated that 
for the nine months to Decem- 
ber 31 1993 there was a loss of 
£6-81m. 

Lincat 17% ahead 

Pretax profits of Lincat, the 
USM-quoted designer and man- 
ufacturer of commercial cater- 
ing equipment, advanced by 17 
per cent from £lJ9m to £1.63m 
in the year to end-June. 

The improvement was 
achieved on turnover up from 
£14.lm to n5-7m. Earnings per 
share came out at I5£p (I4p) 
and the final dividend is being 
raised to 4.7p (4p) making 6-9p 
(6p) for the year. 

Inti Biotechnolgy 

International Biotechnology 
Trust, which was launched in 
April, reported a net asset 
value per share of 9&24p at the 
end of August 
Net revenue for the period 
ended August 31 was £190386 
and earnings per share came to 
0.51p. 

Middlesex advances 

Middlesex Holdings turned 
round an £81.000 loss into a 
pretax profit of £l-57m in the 


By Peter Paarse 

Polypipe, the manufacturer of 
plastic pipes and fittings and 
other domestic plastic prod- 
ucts, yesterday announced 
results which continue its 
Unbroken run of successive 
annual profit increases since 
its 1985 flotation. 

Pre-tax profits for the year to 
June 30 grew 20.5 per cent to 
£20.6m (£17.1m) on turnover 
ahead 21 per cent at £145 Am 
(£120.5m). Operating profits 
rose 20 per cent to £20.9m 
(£17.4 iii), before unchanged net 
interest payable of £300.000. 
The shares rose 5p to 144p yes- 
terday. 

Mr Kevin McDonald, chair- 
man. managing director and 
owner of 212 per cent of the 
gronp, ascribed the mainte- 
nance of margins to three 
essential factors. 

First, he spoke of “the 
group's consistent strategy of 
investment in a substantial 
and continuing capital expen- 
diture programme”, fix the year 
this rose to £15.3m (£12.5m), 
against depreciation of £8J9m 
(£7.2m). Planned expenditure 


for the current year was 
£12.5m, with, said Mr Bryan 
Stock, Finance director, “£5m 
to Efim on plant, £3m on tool- 
ing. Elm on buildings and the 
rest on lorries”. 

Second, on the expansion 
front, the group bought Aller- 
ton Glass - now merged with 
GCA Windows - in June 1993, 
and last May it spent up to 
ElO.lm on Janoplast. the 
Alsace-based manufacturer 
with 11 per cent of the French 
plastic conduit market. 

The French company. Poly- 
pipe’s entrSe into Europe, con- 
tributed £i.9m to group sales 
in the year. It exports 9 per 
cent of its turnover, taking 
Polypipe beyond the French 
and into the Belgian, Czech, 
German and Swiss markets. 

Third was the group's “ever- 
expanding range of products”. 
Part of the motive for this is 
the search to make products to 
the same specification but 
using less raw material. Mr 
McDonald said price rises of 
PVC of 20 per cent or more had 
led the group to lift its own 
selling prices. 

Poiypipe had no gearing at 


the year-end and cash balances 
of £l.6m (£6.7m). 

Earnings rose 19 per cent to 
8.83p (7.4p) and the recom- 
mended final dividend is raised 
10 per cent to i.5Sp for a total 
of 13p (lip). 

• COMMENT 

The biggest question exercis- 
ing the City over Polypipe is: 
can it forever pass the rises in 
raw material prices on to its 
customers? The answer seems 
to be yes, for now. PVC 
accounts for 4555 per cent of 
the group's selling prices, but 
Polypipe does scour the earth 
for cheaper supplies. Polypipe 
is also sensible in the way that 
some 60 per cent of its capital 
expenditure goes into profit 
generating areas, with the fig- 
ure rising to 70 per cent in the 
current year. The recovery in 
the refurbishment market, ech- 
oed by Caradon on Tuesday, 
should take the eye off flatfish 
profits at Janoplast for a year 
or two. With forecast pretax 
profits for the year at £24m. 
the shares are on a multiple of 
14, in line with the sector, but 
perhaps with more to play for. 


Argent £448,000 in black 


By Simon London, 

Property Correspondent 

Argent, the property 
investment and development 
company which made its Stock 
Exchange debut in May. 
reported a pre-tax profit of 
£448.000 in the six months to 
the end of June against a loss 
of ?.i 9m last time. 

However, last year's figures 
did not include profits from 
Argent’s portfolio of invest- 
ment properties which were 
held off-balance sheet in joint 
ventures until March. 

Yesterday's result includes 
rents and interest payments on 
this portfolio from March 11, 
the date of consolidation. 


first half of 1994 on sales up 
sharply from £558.000 to £12m. 

Hie company said consider- 
able progress had been made 
in providing support services 
to natural resource industries 
in the Commonwealth of hide- 
pendent States. 

Earnings per share for the 
period came to 0.23p (0.04p 
loss). 

Rugby Ests doubles 

In its first results since its flo- 
tation in April, property com- 
pany Rugby Estates has 
reported pre-tax profits more 
than doubled from £305,000 to 
£770,000 for the six months to 
June 30. 

Turnover of £3 -86m (£l_82m) 
included £2.74m (£l.08m) from 
property sales. 

The interim dividend is 
0.69p, as forecast at the time of 
the placing. Ramirtg g per share 
came to 4.46p (4p). 

Since flotation, the company 
hya mad** purchases totalling 
about £ 10 hl 

Swalec boys shares 

South Wales Electricity has 
bought back a total of 300.000 
of its shares. 100,000 at 819p 
and the rest at 817p. The 
shares fell 4p to 815p. 

Fleming High Inc 

Net revenue at Fleming High 
Income Investment Trust fall 
from £415,000 to £297,000 for 
the three months to July 31. 



BRITAIN'S INVISIBLE EARNINGS 

made more visible 

An FT survey on this subject Is to be published 
on 31st October 1994. It will bring Into sharp 
focus the vital sectors which together produce 
18% of GDP for Britain from the exports of 
business and financial services. 

To find out more please phone Sue Mathleson on 071 873 4129 
FT. Because buslnes is never Mack and white. 


Rental income amounted to 
£3.98m in this period and inter- 
est costs £3jQ8m. 

Administrative expenses at 
£L15m (£647,000) were higher 
as a result of the additional 

Staff COStS and pvppncgg a rising 

from quoted company status. 

Mr Peter Freeman, joint 
chief executive, said be expec- 
ted administration costs for 
the full year to be about 
£2J5m_ Earnings per share were 
L3p. 

Since flotation Argent has 
complete two large deals. At its 
Brindleyplace development in 
central Birmingham, the com- 
pany let 120.000 sq ft of office 
space to British Telecommuni- 
cations on a 15-year lease and 


Rarnjng s per share were 052p, 
against lJ!9p and the first 
interim dividend is unchanged 
at l.lp. 

Net asset value per share 
was 983p at the end of the 
period compared with 99.4p a 
year earlier. 

F&C High Income 

Net assets of Foreign & Colo- 
nial High Income Trust 
dropped by 7 per cent from 
70.7p to 65 .8p over the year to 
June 30. 

Net revenue dropped from 
£835,000 to £653.000 and earn- 
ings per share came to 2.18p 
(2.75p). The recommended final 
dividend is L5p for a total of 
2.7p (2.62p). 

Fleming Overseas 

Fleming Overseas Investment 
Trust increased net asset value 
per share by nine per cent 
from 306.6p to 334.6p in the 
year to June 30. 

Net available revenue came 
out at £6.25m (£6. 35m) and 
earnings per share were 4.7p 
(4.78p). The recommended final 
dividend of 2.75p (2.7p) makes a 
total of 4.25p (4_2p). 

Cortecs 

Cortecs, the Australian bio- 
technology company which 
recently gained a London list- 
ing, reported net losses of 
ASlOikn (£5m) for the year to 
end June, against a deficit of 
AS10. Operating revenue was 


acquired an adjacent 170.000 sq 
ft building - also let to BT - 
for £5.im. 

British Airways Pension 
Fund has agreed to financ e the 
development of an additional 
68,000 sq ft office building at 
Brindleyplace. 

At the end of last month, 
Argent acquired 28 acres of 
land at the Thames Valley 
Business Park in Reading toe 
£17.4m and Immediately sold 
seven acres for £5 An. 

Mr Freeman said that the 
company was considering 
development options for this 
site. 

The shares closed down 2p 
yesterday at 273p. well above 
the offer price of 255p in May. 


A$10.6m (ASlL9m). Losses per 
share were unchanged at 13 
cents. 

Castle Comms 

Castle Communications, the 
USM-quoted record and video 
publisher which last month 
was acquired by Alliance 
Entertainment of the US, 
reported pre-tax profits up 
from £L53m to £U3m for the 
year to June on turnover up 
from £33j4m to £34. 

Earnings emerged at 19.8p 
(15.3p) per share. This year's 
final dividend is passed leaving 
the total for the year at 4_5p, 
against 8U>p. 

Sage acquisition 

Dataform UK, the forms off- 
shoot of Sage Group, is buying 
Leslie Cantrell for £750.000 
cash. Net assets being acquired 
are £150,000 and profits of 
£150.000 are warranted for the 
year to August 31 1994. 

Courtaulds 

In the aerospace survey pub- 
lished on September 2, it was 
wrongly stated that Courtaulds 
had withdrawn from the manu- 
facture of carbon fibre compos- 
ites. The company stopped 
manufacturing carbon fibre 
raw material in 1991 but 
through its Courtaulds Aero- 
space subsidiary remains an 
active supplier of advanced 
composites to the aerospace 
and defence industries. 


DO YOU WANT TO KNOW A SECRET? 

The L0.5. Gann Seffltaar w) show you how the motes REALLY work. The amazing 
tra^BttriquasotMtegeroaiyW.D. Gam cot increase your prats and contort your 
ten. How? Thas *e veoaHng tel <74 ooao to bode your HEE p»aoa 




EBC Traded 

Currency Fund Limited 

NOTICE of the TENTH ANNUAL GENERAL MEETING ol 
Shareholders to take place on the 11th day of 
October, 1994 at 11am. 

NOTICE is hereby given pursuant to the Articles of Association of 
EBC Traded Currency Fund Limited (“the Company") that the 
Tenth Annual General Meeting of the Company will take place 
on the 11th day of October, 1994 at 11 am at EBC House, 
1-3 Seale Street, St. Helier, Jersey, Channel Islands for the 
purposes of considering and if thought fh, passing the following 
Ordinary Resolutions: 

Resolutions 

1. That the Financial Statements for the period ended 31st March 
1994 together with the Report of the Directors and the Auditors 
thereon be received, approved and adopted. 

2. That Messrs. Coopers & Lybrand who have signified their 
wiling ness to continue in office be and are hereby appointed 
the Auditors of the Company for the ensuing year and that the 
fee payable to them in resped of the year to 31st March, 1995 
be determined by the Directors. 

By order of the Board 

EBC Fund Managers (Jersey) Limited 

Secretary 

Dated the 1 5th day of September. 1994 
NOTES 

1. Tha rcBftf ol a Continental Depositary Receipt rCDFT) may exercbe hs 
vcung rights by dapositinfl the COR at the office of Amstetdam tiuposStary 
Company N.V.. 172 Spuistraa. 10i2 VT Amsterdam. The Motherlands 
(Uto -Deposmyl by Insuuctng tfw Depositary auto the exerase ol 
the voting rights attached to the Shares evidenced by such COR. In the 
absence of suen instructions, the Depositary wil exeretss such voting 
rights ol redan Irom doing so, as it thinks R in the interests of the holder. 

2 CopiesoHfwA««edAccouitSto3l5tMareh 1 1994m^beaWainedfram 
the Manager. EBC Fund Managers (Jersey) United. PO Box 568. EBC 
House. 1-3 Seale Street. SL Meter. Jersey, JE4 8XL, Channel Stands. 

3. There are no service Contracts with the Directors. 


• • « 






FINANCIAL TIMES THURSDAY SEPTEMBER 15 1994 


Aegis rises to £14m 
aided by refinancing 


By Darkl Bteekwel 


Last October's £60m 
refinancing package was 
behind a sharp improvement in 
interim pre-tax profits at 
Aegis, the London-based hold- 
ing company of Europe's larg- 
est media-baying planning 
group. 

The pre-tax figure rose from 
£9.7m to £142m on flat turn- 
over of £L45bn. Interest tum- 
bled than £ 11.6m to £900,000. 

However, operating profits 
for the six months to June 30 
fell by 27 per cent from £21 3m 
to flLSJim. The fall, which more 
than offset a reduction in oper- 
ating costs to £545m (£53m), 
reflected a decline of just over 
£10m in gross income in 
France, where a law intro- 
duced last year slashed media- 
buying revenues. 

Mr Roger Party, group devel- 
opment director, said the fig' 
ores had been transformed by 
the refinancing. “They reflect 
no significant i mp rov em ent in 
trading, but they do show a 
significant improvement in the 
balance sheet” 

The ehnrffall in shawihnlii . 

ers’ funds improved from 
£229m to £U5m- Net debt at 
the end of the half was down 
81 per cent at £26ra (£l37n0- 

However, net cash outflows 

of about £30m were expected in 

the second half, including pay- 
ment of a £4J2m fine to the 
Oonsefl. or French monopolies 
c ranmiffidon, for trading prac- 
tices before the Lai Sapin was 
introduced last April This 
would result in net debt reach- 
ing about £50m at the year aid. 

The group remains 

wrtrwnriy wnitinns OVOT pTOS- 

pects in France, introduced 
French business produced 27 






Charles Hochman; retiring as chief executive officer next month 


per cent of turnover and more 
than SO per cent of profits. 

Operating margins overall 
fell from 5J5 per cent to 45 per 
cent in file period, reflecting 
the “cutthroat competition” in 
both France and Spain. 

Northern European business 
was better, particularly in the 
UK, where turnover rose 30 per 
cent. 

Earnings were Up (2_2p). 
There is no dividend thfa year. 

Mr Crispin Davis, formerly 
with United Distillers, takes 
over as chief executive next 
pinnth from Mr Qiarifis Hoch- 
man, who is retiring. Shortly 
afterwards a new finance direc- 
tor will be appointed. 


• COMMENT 

The benefits of last October's 


Cold winter and cost cuts 
behind advance at Calor 


By P®oay HoHInger 


A cold winter and cost-cutting 
helped Calor Group, the bot- 
tled gas supplier, increase 
interim pre-tax profits by 13 
per emit from £275m.to iwi 
in spite of a 3 per cent drop in 
turnover from £153m to £L48m. 

Mr Hamish Macpherson, 
group treasurer, said the add 
snap between January and 
Mfliy h hart helped to improve 
volumes, which rose by 6 per 
cent “People were keeping the 
gas fires burning a little bit 
longer ” be said. 

However, the benefits of 
improved, volumes were offset 
by lower butane and propane 
prices. The trading climate 
remained difficult, Mr Mac- 
pherson said, although the 
decline in prices had begun to 
stabilise. 

The treasurer said Calor had 
maintained its more than 50 
per cent share of the UK liquid 
petroleum gas business, 
despite fierce competition. 

Color’s profits were also 
helped by the continuing pro- 


gramme to cut costs. Since 
1390, Mr Macpherson estimated 
the group bad cut some £lQma 
year from on-going costs. Oper- 
ating profits in the first half 
rose by 9 per cent to £3A3m. 
Profits in the core gas business 
increased by 6 per cent to 
£SL4m. 

The group finished the first 
half with net cash of £fiOm. 
Calor's strong balance sheet 
would allow it to seek acquisi- 
tions abroad in its main LPG 
business. Mr Macp herson said 
Calor would look for opportu- 
nities both with Its 46 per cent 
shareholder. SHV, and inde- 
pendently. 

The LPG joint venture with 
SHV in Poland, Hungary and 
Slovakia was breaking even. 
Calor invested £800,000 in the 
business in the first hall 

The drinks dispensing opera- 
tion - where Calor leases air 
separation systems to brewers 
and pub chains - reduced its 
losses from £1.6m to £l.lm. 
This business was expected to 
break even next year. 

The dividend is maintained 


at 6p. Earnings were 13 per 
cent higher at lL7p (10.4p). 


• COMMENT 


These results are yet a gain a 
demonstration of how value 
can be extracted from the LPG 
market - even if it is & mature 
one. By passing an the hmafit* 
of increased purchasing to cus- 
tomers, reducing costs and 
h olding margins, Calor baa 
built itself a net £60m cash 
pile. The problem now is what 
to do with it There are like ly 
to be few exciting opportuni- 
ties to buy into the interna- 
tional LPG market, and those 
that are around will take some 
time to develop. Shareholders 
feeing little exei ta m«int in the 
short-tarn wifi be wanting to 
see some of that cash find its 
way into an increased divi- 
dend. Forecasts are for just 
that. Profits are expected to 
rise to £37m this year, along 
with a small boost to the pay- 
out of 05p for a total of lap. 
The yield of almost 6 per cent 
against the market’s 4 per cent 
is Color's biggest attraction. 



PRESSURE 


TAGHeuet 


COMPANY NEWS: UK 


Advance 
by bingo 
clubs helps 
Vardon to 
£1.54m 


Suffering a saturated market 


Neil Buckley looks at the tough conditions facing the DIY retailers 


A n i n c rea se hi operating 
profits from £4Lfon to 
£44frm at B&Q, the 
UK’s largest DIY chain, was 
one of the few bright spots fa 
Tuesday’s results from Xhig- 
fisher group. Ebewherev- how- 
ever, there is tittle joy 'among 
Iff? retaflers. -. ' 

The fierce discounting -bat- - 
ties *bat broke out in i99SPafter 
the slump in the housing mar- 
ket are over. B&Q movedTast 
year from “Mgh-low" prMwg 
towards an eve r y d a y low pric- 
ing strategy, bringing to m 
end the weekends when Iff? 
operator s battled to outdo one 
another on spatial offers. * 
But co nditio ns remain too^b. 
i-Htio iwarta** growth jg fore- 
cast, and analysts agree than 
is- too ™™*b capacity - with 
more being added as operators 
such as Wickes, Great Mills 
and Sainsbury’s Homebase 

| to rip arpmrinn . 

Little capacity is hkelv to be 
taken out Do It AnTtire loss- 
making joint ven tu re between 
Boots and WH Smith, did aril 
100 stores year — reducing 
flie «bflfti to 140 - but 10 of 
those went to Focus, the pri- 
vately-owned DIY pre- 
paring for flotation. 

On the horizon is awithgr 
threat: Home Depot, the US 
“category killer” which sells 
a vast range from giant stares 
at low prices, is planning 
to expand into Europe. It 
has hired Mr An Hodkbrean, 
former managing director 
of B&Q, to seA out opportuni- 
ties. 

The outlook is very rt UT iarmt 
from a decade ago. In the 1980s, 
DIY operators, like the Ug food 
retailers, enjoyed the double 
whammy of rapid expansion 


By CaroBno Southey 


refinancing are clearly shown. 
Aegis now looks much more 
financially sound and a raft of 
new appointments will 
strengthen management. With, 
operating costs earning down, 
the company is well prised to 
take advantage of any improve- 
ment in southern E u rope 
recession ends, although it is 
M ti nem riy cautious in its 
forecasts and the pressure an 
margins is severe. It is 
continuing to win good new 
hmdnggi, SO tire of the 

t u rnover is a little d isa ppoi nt - 
in g- 

Full-year profits of £28m 
this year and £30m for 
1995 both translate into unex- 
citing ftnrwfnga of about 2p 

since the tax charge will 
increase. 


A strong performance from 
bingo dubs helped Vardon, 
the leisure group which also 
owns the London Dungeon, 
incre as e pretax pro fit s from 
£540j000 to £1JS4 m at the 
Interim sta g e . 

Vardan's visitor attractions 
also advanced strongly, contri- 
buting £74S2m (£5.44a) to 
total turnover of £ 12.7m 
(E4BQ in tiie six motti to 
the end of June. The bingo 
division contrib u ted £5. 16m 
yi arm) to —iw while operat- 
ing pro fi ts rose from £79,000 
to 2946,000. 

“Our s tra tegy of developing 
purpose-built, edge-of-town, 
high quality facility bingo 
dubs is p ro vin g cor re ct The 
new clubs are a tt rac tin g 
younger and more affluent 
players,” Mr David Hndd, 
c hair ma n, wW , 

Vardon runs II bingo dubs, 
five of which have been spe- 
cially tmflt an the of 

towns, mostly near shopping 
complexes with p*i«| facili- 
ties. The co m p any has plans 
for four new dubs, including 
one in Croydon which wffl. be 
the biggest in the UK withe 
capacity for 3^00. 

The attractions division, 
which iwimiwi is m Hfa cen- 
tres, a Cornish seal sanctuar y 
and the Inmdnn aiiH York Dun- 
geons, saw operating profits 
rise from £Llm to £L3m. Mr 
Hndd said the new sea life cen- 
tres in Tynemouth and New- 
quay were trading well, 
although the hot, dry weather 
had led to a mixed perfor- 
mance from indoor coastal 
attractions. 

Three new sea life centres 
are planned, teawitiig a 24.4m 
aquarium at Brinley Place in 
the centre of Birmingham 
which the company expects 
will attract 400500 customers 
a year. The TiwAw pm nwi 
attracts 550,000 annu ally. 

Vardon committed mw to 
its development programme in 
1994, £8m of which fell in the 
first half. The company will 
end the financial year with 
borrowings of £5 An and gear- 
ing of 16 per cat 

An interim dividend of 1 
0-375p (0-3p) will be paid. { 
Earnings per share rose from I 
0-7p to USp. 





tags of signs of recovery in the 
hnnring mar ket at tiie end of 
last year to reduce prices-mdef- 
inttdy an 1500 product Hate: 
T i ii m h n profits mare than- dote-' 
h frd from £llm to £8.7 Bnt’ ;«• 
Unlike B&Q, however; Tffueit 
sells proprietary 

brands, Wickes sells, mainly 
own-label , pro ducts , which 
have earned a strong reptife- 
tion for quality. ■ s ■' Vk 
Own-label is an important 
component in the strategy iof 
Sainsbury’s Homebase, 

ftyinfhftr format .favoured by 
analy sts. Hoinebase-hasjan 
upmarket image, and “-softer” 



and , ever-increasing gross 
Profit nmrgliift 

The number of Iff? raper Tv 
stares. almost doubled from 569 
to ifiia between 1965 and 1999, 
according to Verdict; the retail 
research, group. At the same 
Httw» according to ^ Central 
Statistical Office's Retailing 
Inqufry. DIY retailers’ gross 
margins increased frean 90 per 
cent to 345 per cent 

But again Him the big gro- 
cers, DIY retailers ran into sat- 
uration problems just as tiie 
growth in the market slowed. 
To prosper in the new environ- 
ment, I MY ope rat ors are seek- 
ing ways of bring dis ti nc ti ve, 
nfh^ rMnabig tO in 

fho “soft” Of Hu* nun^rpf — 

deco ra tive ml gawWmrff pmd. 
acts — or tiie “hard” wiJ — 
hardware, tools and construc- 
tion products. 

B&Q aims to be a broad- 
based retailer, aid is adopting 


a “twin-track” expansion 


It has sought to pre-empt the 
arrival of Home Depot by 
branching a. loakaHhe format, 
originally called Depot but now 
knoqn as B&Q Warehouse, 
B&Q has 14 Warehouse stores 
of 80500 to 100500 sq ft, and 
plana at least 50. Mr Alan 
Smith, wngfiahar chairman, 
said this week tiie two newest 
Warehouses are already on 
track to achieve sales of 
between £l4m and £15m in 
their first year. 


A t the tone it is 
refurbishing its exist- 
ing 40500 sq ft “super- 
centres”, based an a successful 
trial at Fkrebam, Hampshire. 

Analysts’ fav o u r ite stock in 
the sector is Wickes, which, 
like B&Q Warehouse, is tar-, 
geted partly at trade custom-, 
era. Whies also took advan- 


range. .. ¥ 

The remaining two of the 
biggest five chains are findin g 
life more difficult. First-half 
profits at Texas Hrinecare foil 
from £l6.6m to ram Tanks, 
which h«d become a specialist 
. in home adornment, is testing 
a “harder” format 

Do It AH feces the most diffi- 
culties, although coparmt WH 
Smith last month announced 
that fntorim losses had feflsn 
from £L45m to £105m fritow- 
ing tbe chain’s ra tionalisati on. 

What was supposed to be the 
way ahead for Do It All, its 
Nfew Trading Concept format, 
did not meet expectations, and 
is being replaced by the Project 
Focus Store. This has a 
“softer” feel and does not 
group products so rigidly into 
DIY project categories as the 
NTC format. 

WH Smith and Boots say Do. 
ft All should re tu rn to profits 
in the flwawiai year.. It 
would be helped - as would an 
DIY '•bafag - by a substantial 
upturn in the housing market 
For the m or |<lin *i there samm 
Bttie sign of that 



Savoy in black with £0.58m 


Powergen 

buy-back 


By Michael 8kqpHow ( Leisure 
Industries Cocraepondent 


Savoy Hotel, which announced 
a new management structure 
on Tuesday, yesterday reported 
pretax profits of £575500. for 
tiie half year to June 30 com-, 
pared with losses of £L75 ol 

The group - whose hotels 
include the Savoy, Claridge’s, 
ftp Connaught and flw Berke- 
ley- - said business had been 
boosted by recovery in bath 
the US and the UK. Operating 
costs had increased, however, 
partly because of rising terror- 
ism tnanranrw flxpePSCS, 

Savoy said on Tuesday that 


Sir Ewen Fergussan would 
replace Sir AwHimy Take as 
chairman at the end of the 
year, ft said Mr Martin Rad- 
cHffe, a Savoy Erector, would 
be aritoig manag in g in 
piapp of Mr rtn«« S hepard, who 
resigned cm Monday. Savoy has 
a ppro a riied Mr 'Ramon Pqjares, 
yrw mi mnra r of London's 
Four Seasons hotel, to fill the 
position. 

A chairman’s committee 
made up of Sir Even, MrBocco 
Forte, chairman of Forte, and 
Mr John Sinclair, a Savoy 
dkectoi? would assist tire new 
manag in g director . ■ - 

. Savoy said Mr Radcitffe, Mr 


Smriirir anrt Mni Janw Thump 

an assistant to Mr Badctifie, 
bad resigned as trustees , of 
sha reholding trusts. They no 
longer have non-benefteial 
interests in the shares held by 
these trusts. This does not 
affect the overall ownership of 
the group. 

-Turnover for tbe six nwntfai 
increased by 13 per emit to 
£425m (£37.&n). There was an 
operating profit of £1 JLfen 
(ELSlmloss).-: 

Bandngs per A share .were 
L3p (4p losses). Earnings per B 
share w ere5.6p (2p kra^ 

The Aritares fell I2p to dose-„ 
at 91%). 


Holiday Inn hotels brand change 


By Mlcliael SkapMcar, Letaiao 
Industries Catraapondont 


Holiday inn is to remove its 
name from its luxury Crowne 
Flaxa hotds whirii will now be 
marketed as a separate brand. 

The c h a nge will apply ini- 
tially to Crowne Plaza hotels in 
tire Americas only. However, 
Mr Bryan Langton, Holiday 
Tnn chairman, «*ifl he 
the change to be extended to 
tire rest of the world eventu- 
ally. This would follow consul- 
tation with hotel owners in 


Europe and Asia, he sakL 

Mr Langton said the 
followed market research 
which indicated that the 
Holida y inn brand tonnid 
not be ex tended to top-range 
hotels. 

The company, which is 
owned by Bass, the UK brew- 
ing and leisure group, is also 
introducing two new hotel 
brands in the Ameri cas. The 
first Is Hol i d ay Inn Select, 
which will consist of busfness 
hotels in ci t ies and suburban 
areas. The second win be Holi- 


day hm Hotel and Suites which 
will . cater for longer -stay 
guests. 

• Mount Charlotte Thistle, 
the UK hotel company which Is 
majority owned by Brierley 
Investments of New Zealand, is 
to market its Thistle and 
Mount Charlotte hotels as two 
separate groups. 

The bniriing companies for 
the hotels will be Thistle 
Hotels and Mount Charlotte 
Hotels and the holding com- 
pany for both win be Mount 
Charlotte Investments. 


Credit Lyoimais withdraws * 
from UK personal banking j 


By ABson Smith 


Fidelity launches 
third investment trust 


By Bothan Hutton 


Fidelity is to launch its third 
investment trust, a UK special 
situations fond to be run in 
parallel with the group’s 
existing special situation 
unit trust 

Fidelity Special Values win 
be managed by a team led by 
Mr Anthony Bolton, the 
respected manager who has 
been responsible for the special 
ritua t k m g unit trust since its 
launch in 1979. 

B ranks second tf 54 foods in 
the UK equity growt h sector 
over 10 years, and. fourth of 180 
over three years, but 54th of 
116 over five. years (source; 
Ificropal). 

The investment strategy for 
both funds is based on a con- 
trarian approach, concentrat- 
ing on individual companies 
rather than eoanmnic factors. 
Fidelity's team of UK analysts 


looks for companies with 
recov er y or growth potential 
not folly priced into tire shares, 
under-researched and under- 
valued companies, takeover 
candidates, restructurings and 
so an. 

The fond will be at least 80 
per cent invested in tire UK, 
with amaQ amounts elsewhere 
in Europe and tire US. 

Fidelity has a programme of 
launching investment tru sts 
based an tts most successful 
unit trusts, to broaden the 
appeal of its range to investors. 

The new trust will be 
ladbched: with a pfadEwg and 
puHBs offer, due to open an 
October -19. Ordinary shares at 
lOQp will have warrants 
att^ed to a cme-to-flve ratio, 
and the trust will be geared by 

thp-hqi TyiyfjfHjliHy 1 1 hTpt-Ht ifcw} 

loan, stock, . ; qp to tiie vahw of 
25 par cent of the net proceeds 
of the share issue. 


Water glade 
management 
lose control 


Credit 1 Lyonnais, the 
state-controlled French bank- 
ing group, is to withdraw from 
personal banking in the UK 
and wffl dose half ite g gicpil 
corpor a te banking centres id a 
refocusing of its activities. 

The .number of staff In tire 
UK is expected to feU-by about 
GO to around 400: scane but not 
afl of these wffl be compufeory- 

redundandes. 

■ The group expects to dose 
its personal banking farfBtfew 
within six months and wm afoz 
to help its few thousand UK 
personal banking customers 


Unit a l ternativ e luffifin. -• - 

Mr Bernard ^ Dannayan, UK 
general manages, said tire 
number - -of personal customers 
was too low to justify the 
investment that was required. 

Begianal corporate banking 
centres at Bristol. Cambridge, 
Newcastie* Nottingham and 
Southampton would be dosed 
by the end of Ibe year, he said, 
but tins would be offset by 
investment in information 
technology at tire remaining 
five centres, enabling th«m to 
provide better services and to 
cover the- areas previously 
dealt with by the wider net- 
work. 


The management of 
Watereiade iniwui iIonBl hafl' 
lost its battle for control of the 
lossmaking p roperty devel- 
oper. It is to be replaced by the 
o p po sin g shareholder group, 
led by Singaporean Winston 
Ng, writes Simon Davtes. 

The new directors - have 
und erta ken to pursue a recapi- 
talisation. which has become 
an orgeat need for a company 
with negative shareholders 
foywlff Kft An 
rights Issue of £6m b expec- 
ted. 

Hr David Conbintfoam, 
c ha i rm an, and fiiefflzeeatiier 
di rec to r s have resigned, and 
compensation for loss of office 
has agreed. 

Mr Selwyn . Mldgeo, Mr 
Anthony Mid gen , Mr John 
Darby and Hr Setri Bayes 
will join Mr Ng an. the new 
board. 


Glaxo^ plans Zantac to 
be over-the-connter drug 


Glaxo has criffirihed tiiat it 
faifamh to apply thb year for a 
Haace to sell its best selling 
drug Zantac as a medicine 
which can be bought over the 
counter wMhont a prescrip ti on, 
writes Daniel Green. 

In a formal statement of 
research and development, the 
company said ft would seek 
approv a l for tiro more versions 
of nicer drug Zantac. One js a 
ve ralan of the drug which wn* 
bacteria that are thought to 
contribute to or even tri g ge r 
ulcers. 

These steps me Hkely to be 
fan porta nt in the attmnpt to 
maintain Zantac sabs at tire 
£25bn it recozded last year. 

Three more applications, &Q 
new ways to admin later 
inhaled asthm a drugs, will also 


be filed by the end erf the year. 

Reviewing progress fince the 
last formal B&D update last 
November, Glaxo said’ it had 
launched or gafoied:- approval 
for 15 new drugs te.'fortmfla- 
tians worldwide and fhree^hew 
compounds hare started’ chut 
cal trials. 

Alter exploratory develop- 
ment, four new compo un ds are 
also under pre-cjinical .testing, 
involving drugs to combat 
heest fidtare, pain, cystic fibro- 
sis and asthma. 

Sev eral, however, have been 
dropped since last November, 
iwrhrdtng an antihexpes com- 
pound. Development of GR 
87442, a potential follow-on to 
Ghuro’s successfol Zofran anti- 
nausea drug, has also been dis- 
continued. 



Femme deDo State 
r jt a o o5W | ^9 0» 
Flaetiog Bste Notes doe 2002 
UTTDaSOObOOOtoO 
Rate Not« Aw 2002 


PobBabed b ad edtloom of the Rraetb lines waAMde, 
•dtaiW lB the mm wB mdyam devefqpeert* b the CaUs 
mad Satellite breadcaatliig tndaetry. To* recatva tether 


For th* paled SeplariberlSi NM to 
Kerch 16, IB5 tbe Notes frD Cany an 
interest MtoefW Wparaa m att 
BMrttofUl MIl WOM p— i 
LIT 5 ^ 00^)00 and of LIT ^ 322 ^ 04 SSpar 
LTTBO fimflUL 

Thu wlwwt hw wt poyio ai* date wB 
balfsnhSsBK. ' 


n 

BanqueEuubas 


Mote AndraMB Thb *44(0)71 873 Sara nc *44 (0)873 3082 


FT Surveys 



^^bar^ N A.BHn wSaeiail,Agail BoJc OTIBAM O 


U.S. $500,000,060 

CITICORP Q 



IW 


Powergen has repurchased 
&Sm of its own diares for caxt- 
ceflation, bringing the total 
vent over tbe last month on 
buy-backs by tire privatised 
power !■"■«** to mare than 
£27hL . 

. Several of-tire electricity 
companies have been baying 
back their own shares in 
I- recent weeks. 

The fray-back was achieved 
at a price of 573p per share 
and leaves PowergenvwithU.6 
per- cent of its tiiare capital for 
cancellation. 

- The tMmpeny har the power 
to purchase- up- to 19 percent 
of its shares. 








23 


FINANCIAL TIMES THURSDAY SEPTEMBER 15 1994 


Puzzle for the economists 
over a ‘peace dividend’ - 

See Page II of this survey 


FINANCIAL TIMES SURVEY 

NORTHERN IRELAND 


North/South trade: the 
barriers start to fall 

- see Page III 



Thursday September 15 1994 


JifMir foR ?lAc £ 


A eMd plays boB atongride a new vraB slogan In north Belfast 

S ir John Davies, the attor- 
ney general for Ireland 
under the first Queen 
Elizabeth, described Ulster in 
1606 as “the most rude and. 
unreformed part of Ireland, 
and the seat and nest of the 
last great rebellion." 

Catholic Irish lords had con- 
stantly "champed at the bit” of 
British rule, but it was 315 
years after the attorney gen- 
eral wrote those words before 
the problem of seemingly per- 
petual Irish revolt was par- 
tially resolved by partiti oning 
the island in 1921. 

A better-known former UK 
attorney general, and currently 
the Northern Ireland secretary 
of state, Sir Patrick Mayhew, 
has had the delicate task of 
presiding over the ending of 
another rebellion, that of the 
Provisional IRA, which for the 
past 25 years has created havoc 
in Ulster and on the British 
mainland in its efforts to force 
a total British withdrawal from 
the province. 

The IRA’s cessation of hostil- 
ities, announced two weeks 
ago, has so far held, and a 
growing number of political 
leaders both domestically and 
abroad are coming to believe 
that this may really be the per- 
manent cessation of violence 
demanded by the two govern- - 
meats in last December’s 
Downing Street declaration, 













Young ladies tun to watch a British sokfier on patrol in the 


Belfast uonty Barr, ap A SJnn Fein supporter demonstrates outsfde Belfast's city hail 


The challenge now is winning the peace 


and which will pave the way 
for the hiringtnp of Shm Fein, 
the poBHcqi wing of the IRA, 
into round-table talks. 

Sir Patrick stresses that it is 
the ‘Intention” that the cease- 
fire be permanent which is 

Important and that this rmig f 

be matched by deeds and 
words before the British gov- 
ernment can finally accept the 
IRA’s bona fides - “the reason 
is that *h»« government cannot 
be seen to sit and down and 
talk to people who may be 
reserving an option of going 
back to their fo n w r violence if 
they don’t get what they want 
at the table. . .1 have to main- 
tain tha confidence of people in 
Northern Ireland.” 

That confidence is showing 
signs of growing. In Dublin, 
the Irish prime minister wo* 
Mr Gerry Adams, the Sinn 
Fein president last week, to 
prepare the ground for Sinn 
Fein’s inclusion in a Dublin- 
based Forum for Peace and 
Reconciliation, which will 
bring together the political par- 
ties in the Republic with Sinn 
Fein, the nationalist Social 
Democratic Labour Party 
(SDUP) and the moderate Alli- 
ance party from Northern - 


With the prospect of a lasting peace now firmly on the agenda, serious thoughts are 
being given to the economic implications, reports Tim Coone 


Ireland. The North’s other 
unionist parties have so far 
refused to join the Forum, but 
some leaders of the Ulster 
Unionist Party (UUP) have 
mriinaturi that they believe the 
ceasefire to be permanent and 
once convinced of that, have 
said that they will eventually 
sit at the table with Sinn Fein. 

At the international level, 
the US government has thrown 
its weight behind the peace 
process and held out a promise 
of economic assistance to 
Northern Ireland, as b«« the 
European Commission. 

Whether the Loyalist para- 
militaries will also lay down 
their weapons - a key factor in 
the peace equation — remains 
to be resolved, and a small 
bomb planted at a Dublin rail- 
way station last Monday does 
not look encouraging. But com- 
munity workers in Pro t esta n t 
working areas of Belfast 
are convinced that a Loyalist 
ceasefire will be declared 
within the upt* few weeks. If 
so, the momentum towards 
peace would become increas- 
ingly unstoppable. - 


The nest hurdle in the peace 
process, once a ceasefire is 
established on both sides of the 
community, will be to convince 
all tiie political parties to sit 
dnwa and negotiate new con- 
stitutional arrangements for 
Northern Ireland. A focus for 
these talks is being drafted by 
the British and Irish govern- 
ments in the form of a "frame- 
work document,” which will 
address such issues as reform 
of the Republic’s territorial 
claim to Northern Ireland; a 
new elected assembly for the 
province; and cross-border 
administrative structures 
which will encourage greater 
economic and political 
co-operation between the 
Republic and Northern Ireland. 

No-one is under the illusion 
that these talks will be any- 
thing other than difficult The 
GUP and the hard-line Demo- 
cratic Unionist Party (DUP) see 
in the cross-border structures a 
potential trap which win lead 
to eventual joint sovereignty, 
and a back-door approach to a 
united Ireland. Mr Jim Gihney, 
who sits on the national execu- 


tive of Sinn Fein, raid his party 
would welcome new cross- 
party structures - “if they are 
free-standing and can freely 
develop and there is no ceiling 
built into their development, 
we would see them as a pro- 
cess towards national reconcili- 

&tiOTL n 

Unionist fears can, it is 
hoped, be dealt with, by having 
the executive powers of the 
new bodies jointly delegated to 
them by parliaments in both 
the Republic and Northern 
Ireland, rather than by the two 
governments, according to Sir 
Patrick. 

W hether nationalists 
will accept this, 
remains to be seen. 
Mr Albert Reynolds, the Irish 
prime minis ter, said last week 
that the next battle to come 
"will be over the framework 
document” But both govern- 
ments are convinced that with 
a willingness to compromise by 
both nati onalis ts and union- 
ists, facilitated by a climate of 
peace, then agreement is 
achievable. Sir Patrick says 


“there has got to be an out- 
come in which nobody can 
seek to have achieved every- 
thing at the end." 

So, with the prospect of a 
lasting peace now firmly on 
the agenda, if not yet firmly in 
place, serious thoughts are 
now being given to the eco- 
nomic implications of peace. 

Economists are divided on 
the issue. There are those who 
say that Northern Ireland’s 
development agencies such as 
the Industrial Development 
Board and the Northern 
Ireland Tourist Board, will be 
able to aggressively market the 
province to foreign investors, 
no longer having to fight 
against the negative image cre- 
ated by the troubles. 

The announcement last week 
by Hilton International, that it 
is to build a 187-bedroom hotel 
as a centrepiece to the new 
Laganside development in Bel- 
fast will be an encouragement 
to others thinking of capitalis- 
ing on what is expected to be a 
tourist boom in the province in 
the years ahead. 

Seagate, the US electronics 


manufacturer, last year estab- 
lished a high-tech manufactur- 
ing facility in .Londonderry, 
without waiting for a peace 
settlement, attracted by tbe 
large pool of skilled labour in 
the province- The textile indus- 
try continues to grow and now 
provides around a quarter of 
all manufacturing employ- 
ment. First-class infrastructure 
in road, rail, telecoms, ports 
and airports adds to the attrac- 
tion of the province. 

The optimists therefore say 
that peace will bring foreign 
investment on a s imilar scale 
to that achieved by Scotland. 
Wales and tbe Irish Republic. 

Whilst the economic benefit 
of peace is not in dispute, more 
cautious analysts point to the 
downside. As many as 20,000 
people are estimated to he 
employed in the security forces 
and related occupations such 
as the security guards seen at 
the entrance of almost every 
large store and office block 
across the province. Many of 
these could be expected to lose 
their jobs. The short-term 
effect could be a rise in the 
unemployment level of 98,000 
or 13.1 per cent of the work- 
force. already the highest in 


netrn; cma*i RnML RMJtor 

the UK. Sir Patrick acknowl- 
edges the problem - "there is 
going to be a need for gradual 
adjustments and it is true that 
a lot of jobs are linked to the 
emergency." 

He says that up to 80 per 
cent of the annual £lbn gov- 
ernment spending on security 
is related to the emergency. 

The potential loss to the 
economy in security-related 
spending by both the public 
and private sectors could 
therefore exceed £lbn in the 
event of a lasting peace, equiv- 
alent to around 10 per cent of 
the province's GDP. Business 
leaders can thus be expected to 
exert intense pressure upon 
both governments to provide 
extra resources for Northern 
Ireland, whether from their 
own exchequers, or by enhst- 
ing support from Washington 
and Brussels. As Michael 
Smyth, an economist at the 
University of Ulster, says: "The 
d an g er is that the government 
could pull the rug out from 
under the private sector, just 
as they have a chance of tak- 
ing off.” 

After decades, indeed centu- 
ries, of conflict and rebellion in 
Northern Ireland, the real chat 
lenge thus facing Ulster's poli- 
ticians as the 2lst century 
approaches is no longer that of 
winning the war, but rather 
winning the peace. 





A Powerful Performance 

As Nonhem Ireland’s No.l company*. 

Northern Ireland Electricity prides itself on its 
dedication to set and ntainiain the highest possible 
standards of responsiveness to customers and the 
community as a whole. 

N1E has invested heavily in its own future and that 

of the community it serves. laying solid 
foundations for the Company, its customers and 
Nonhem Ireland in the challenging years ahead. 



A PREMIER COMPANY 


* Ulster Business “Ulster's lop It Mi Companies - 1994" 







24 


FINANCIAL TIMES THURSDAY SEPTEMBER 15 1994 


NORTHERN IRELAND II 


Die Northern Irish economy 
is recovering faster than the 
British economy as a whole, 
reports JOHN McMANUS 


I t is probably not surprising 
that peace should be as 
divisive amongst Northern 
Ireland's economists as 25 
years of violence has been 
amongst the population at 
large. The “issue” in Northern 
Irish economic circles at the 
moment is the impact on the 
economy of a prolonged, hope- 
fully indefinite, period of 
peace. It is best summed up by 
the question: "Is there going to 
be a peace dividend or a peace 
deficit?'’ 

There are some facts about 
the situation accepted by both 
sides in the debate, including, 
the fact that the Northern Irish 
economy has been buffered 
from the worst of the recent 
recession by a £3bn to £4bn a 
year subsidy from the British 
Exchequer. 

It is also accepted that the 
Northern Irish economy is 
recovering faster than the Brit- 
ish economy as a whole. This 
is particularly obvious in key 
measures such as Northern 
Irish production output and 
manufacturing industries out- 
put, which, on an indexed 
basis, have been ahead of 
Britain since mid- 1990. 

Although unemployment in 
Northern Ireland remains the 
highest in Britain, at just 
under 13 per cent, employment 
has remained stable since 1990, 

despite a si gnificant ifwrfinw in 
Britain. 

In fact, looking back. It is 
debatable whether Northern 
Ireland had a recession at aH 
If you take a Harifne in GDP 
over two successive quarters 
as a definition of a recession, 
then it definitely did not have 
one. However, what econo- 
mists do not agree on is that 
peace will benefit the economy 
and support the recovery. 

Dr Graham Gudgln of the 


Prolonged peace could bring a ‘peace;dividend’ - or, some want; a 


: • x 


A puzzle for the economists 



-- -■ v - *. ■ 




Visitors in Botfast: long-term peace woukl boost the touwn sector 


Northern Ireland Economic 
Research Centre is one of the 
doubters - "security-related 
expenditure accounts for about 
one third of the £4bn annual 
subvention . . . there is a huge 
question mark as to whether 
the north would be allowed to 
keep that money if peace broke 
out" 

The possible benefits to the 
Northern Irish economy of 


VVl i! 


■ ■■!■. ■■■ v.-f * - « • ■ ■: :< *%■■; : 1 1- **1 

v ■■ ■ r-‘." .'a-f; i-> v- /*.:•" ;* •••:•: i ' •A 

. : • x 'V " ' 

• L ;i : pXX 

„ : . Afv. As 


increased tourism and other 
aspects of peace, would not 
outweigh the effect of losing 
the subsidy, he believes. 

Up to 20,000 well-paid jobs in 
the security forces and related 
areas could be lost predicts Dr 
Gudgin. The type of jobs that 
are supposed to replace them, 
particularly in areas such as 
tourism, will be relatively low- 
paid, he points out 


Beffut Is mB-asned with modem r 

The government, not surpris- 
ingly, is much more positive 
and the Minister of State at 
Northern Ireland’s Depa rtment 
of Ec onomic Development Mr 
Tim Smith, hag cited unpub- 
lished research showing that 
“over a number of years” the 
net effect of peace will benefi- 
cial in job terms. 

A similar stance has been 
taken by the Confederation of 


who worksgiiTth. the Goves^ 
meat policy advisbry group; ! 
Dm Northem^aa^.Econcaxdc^ 
CanncfL 
Mr 

wduLdbe 1 ® 

to mdnstryl frdkh^ 

an envbt^B^it'not 
by a pofiriod: d&fiafe .ctf vio-; 
lence and cotoEcL i ~.\ ,:jV: _ 

“The troubles, fod not;reafayL\5 
lead to companies , puffing oat, 
but to. a rituatfifa where’ they 
do not operateanider normal 
ccnd£tSans,"-he dahns.. 

Mr Haffifitanalsq 
-that there wbidd be : _ 
on the British government 
. Mthe NdrtiianJrish econo: _ 

, down' gently, by phastog-on£ 
thepaymenf gradually^ antf ^ 
creating a^-reconstructton or 
redevelopment fund. 



taH developments mca 

British Industry In Northern 
Mai which es timates But 
job growth through inward 
investment will quadruple 
from about 500 per year to 

2.000 over a two-to-three year 
period, while perhaps another 

70.000 jobs wffl be created- in 
the tourism industry. 

One economist who is very 
positive about the impact of 
peace is Mr Douglas Hamflton, 


hhough Ihe British' gp* 
ernmexrt has not camSs, 
M^tonifted itself to surih a. 
fund, there have already been, 
suggestions of increased aid 
Than. tbe-BriRed States and rile 
.European Unload 
' - The OS - is - considering dona- 
ting up to $15Qm over two to 
three years through the Inter- 
national Fund for Ireland. The 
fond was established by foe 
British and Irish governments 
in 1988 and raises money in. 
North America and Europe for 
projects that encourage recon- 
cdKationandeconomic regener- 
ation: 

The president of the Euro- 
pean nommlwrfwi, Mr Jacques 
Ddora, has said foe European 
Union may the of 

the donation tt malms to foe 

I n ternati o nal Fund . 

There will be fundamental 
rhangra hi foe Northern Irish 
economy, which has many 
structural weaknesses, if peace 
becomes permanent, believes 


s^ssssessa^ 

B KEY FACTS $ 

gj 

Si' ; •— .r.'j ’i- ‘A:': ? > v't' * 


■ i h -lief? 

' -j -'■'i 

• •/’ — ' —■‘■Tv v>v r '4^‘.- ’ 


MrHamilton. 

-Paradoxically,' it was the 
strudhral weakness that led to. 
fo e af^nrh-ahiA performance of 
the . Northern Irish economy 
during the recent recession, 
according to Mr The 

under-developed nature of 
Northern Ir eland 's financial 
services- -industry and - the 
dynamics^ of its property mar- 
ket, with no aiq^redable shml- 
.age of private sector- housing, 
meait .that the boom, hr per- 
sonal credit .that led- to foe 
British recessitm, bypassed 

Northern Tr pjanri. The, absence 
. of j. speculative pressure ,qn 
house prices meant thafpeople 


in Northern Ireland had noth-£ 
ing like the level of personal 
debt that people in foe South 
of England had when high 
interest rates hit at the end of 
the 1980s. 

The distorted nature of 
Northern Ireland’s employ- 
ment patterns, with the gov- 
ernment employing rough ly 
200,000 out of a total workforce 
of about 900,000. bad a strong 
buffering effect, also, explains 
Mr Hamilton 

In addition, foe exceptionally 
high level of grants that have 
-’been available in Northern 
Ireland sines foe start of foe 
troubles - up to 40 per cent of 
capital expenditure -.meant 
rtiai Northern Irish- companies 
went into recessions very well 
ca pitalis ed and with less debt 
than most British competitors. 

The strong performance of 
Northern Ireland’s manufac- 
turing industry is not merely 
accidental, points out Mr 
Gudgin. As a sector, it is less 
dependent on the British mar- 
ket thaw most companies in 
the UK. 

Sales to Britain only account 
for one third of output, com- 
pared to two thirds for most 
British Industry. In addition, 
wage levels in Northern 
Ireland have fallen by about 10 
per cent below British levels in 
the last ten years, due mostly 
to unemployment and the and 
of collective wage bargaining, f 
says Dr Gudgin. 

One area in which Dr 
Gudgin and Mr Hamilton do 
concur is in their caution when 
it comes to predictions for foe 
Northern Irish economy. In the 
absence of any appreciable 
peace dividend, both econo- 
mists find it hard to accept 
that the North will outperform 
Britain in the long term. 

“Northern Ireland follows 
the British cycle," ex plains Dr 
find g in , but he adds: “If wage 
advantage and other advan- 
.tage&can be maintained, there 
is evidence that there will be 
something of a long-term. 
..improvement in the competi- 
tive position.” 


Hie text 


Manufacturer’s profile: Seagate 

Derry’s high tech coup 


T he quality of foe labour 
force was the reason that 
US disc drive manufac- 
turer Seagate chose Derry as 
the site for a £45m high-tech 
factory last year. 

The area offers a pool of 
well-educated, well-qualified 
and hence trainable labour," 
explains Mr Michael Caulfield, 
the managing director of foe 
plant 

A chance meeting between 
Derry's nationalist MP, Mr 
John Hume and Seagate’s 
Irish-Amerlcan director and 
chief technical director. Dr 
Brendan Hegarty also “could 
not but have helped put Derry 
on foe short-list for possible 
sites,” admits Mr Caulfold. 

Northern Ireland has the 
twin distinctions of having 
among the highest educational 
standards in Britain and 
Ireland, and foe worst levels of 
unemployment Of the top 200 
schools in the latest round of 
A-level results, 20 per cent 
were in Northern Ireland, 
explains the Belfast-born Mr 
Caulfield. Parts of Deny, how- 
ever, where 13 per cent of the 
workforce are without a Job. 
have some of the worst unem- 
ployment rates in Northern 
Ireland. 

Seagate's manufacturing 
strategy is to take every stage 


of the process of making disc 
drives mid “look at foe amount 
of technology, capital and 
labour involved and ask what 
type of employee and what 
type of investment is needed," 
ex plains Mr Caulfield. 

The company then decides 
on the most appropriate loca- 
tion for that stage of foe pro- 
cess. This has resulted in 
labour-intensive assembly pro- 
cesses being located in South 
East Asia and until now, the 
technology and capital-inten- 
sive stages being located in the 


through the use of human 
operators that the manufactur- 
ing process can be flexible 
enough to meet the demands of 
the computer industry - where 
product life cycles can be as 
short as sine months. 

Northern Ireland’s develop- 
ment agency, foe Industrial 
Development Board, offers 
some of the best capital grants 
in Europe - up to 50 per cent 
of capital expenditure. Just as 
importantly, in Seagate's case, 
generous assistance towards 
training and technological 


The region has attracted US investment 
for a £45m computer equipment factory 


US. Deny was a vary suitable 
choice for the location of foe 
first facility far manufacturing 
foe 'heads’ which read foe 
memory discs in the drives - 
foe equivalent of foe needle 
that plays the record in a 
record player - outside foe US, 
explains Mr Caulfield. 

The head manufacturing pro- 
cess is extremely technology- 
and capital-intensive, using 
machines costing between 
£500,000 and £1.5m each. How- 
ever, the machines require 
extremely competent and well- 
trained operators, as it is only 


development are also available. 

“Wherever we set up, there 
would have been a huge train- 
ing load," explains Mr Caul- 
field. The first 100 employees of 
the Deny plant had to spend 
three nv>nthg training in. the 
US, before the start of produc- 
tion in Deny. 

Further training will have to 
be carried out in Derry as new 
employees are recruited. The 
company has received grant 
assistance for this, on a level 
similar to the capital assis- 
tance given by the 1DB, from 
the Training and Employment 


i'Hi that aM t E B M 

■new remeeftes must 
. expect hew .evils, • -f 

fir time is the greates 




Innovation which ii the successful 
creation and commercialisation of 
new produce, services or ways of 
doing business, is regarded as the key 
to competitive success. 

All businesses warn to compete 
successfully and profitably. Local, 
National, HU and World Markets are 
inacatingiy competitive. 

New markers and market challenges 
ate quickly e m e rgi ng in and from 
Eastern Europe, the Third Vfcrtf, . 
Asia and Sooth America. 

The Industrial Research fit 
Technology Unit (IRTU) has the role 
in Northern Ireland to promote 
innovation; to ensure due Research fit 
Development is pansued at an integral 
feature of a company’s strategy and 
generally to nurture a culture of 
continuous creativity and change. 


fioroca Bacon cfisw*a* r '< 


OtTU makes available many schemes 

of assistance, such as 

The COMPETE Pragmunoc - rtetppmX 


SCIENCE flt TECHNOLOGY Programme - 
tup port for industrially reiciNzni 

piT-eompctitwe R&D tauUrtakea 

colLtboMtmrfy ( univ ers it y t$r b/uhtstry) 

or by industry aUme 
SMART Scbctae - support T9 help 
develop innovative ideas 
TECHNOLOGY AUDIT Scheme - 


to improv e their R&D com pet enc e and 
MiHpedtheneo. 

To Bad out more about DCnTs range 
of financial assistance, consultancy 
help and technology transfer service* 
contact Debbie Retd at s- 
0232 529533 or Rue 0232 529548 

%iitu 


Mtnty Awtxm, Soifaat 8T42JP 


Agency. There has also been 
help from the Industrial 
Research and Technology Unit 
towards the establishment of a 
worldwide research and devel- 
opment centre in Deny and 
this “will take Seagate's 
recording head technology into 
tiie next century," taplahw Mr 
Caulfield. 

The factory, which com- 
menced production hi January, 
will produce 100m heads a 
year, half of Seagate's total 
production, by the end of 1995. 
This will give the company the 
ability to double revenues from 
foe current level of around 
$3bn. explains Mr Caulfield. 

The heads, roughly two milli- 
metres square, are mamrfac- 
tured in batches of around 
6,000, neatly. 'spaced out on 
ceramic squares about the size 
of a bathroom the. The squares 
are shipped from Deny to Mal- 
aysia where they are sliced up 
into individual heads before 
being shipped to Thailand for 
mounting on the disc drive 
arms - the equivalent of 
record-player arms. The final 
assembly process takes {dace 
in Singapore, where foe disc 
drives are assembled before 
shipmmt to computer manu- 
factures for inclusion in their 
products. 

Seagate produces 200 differ- 
ent drives ranging from foe 
small drives used in desktop 
PCs to the massive *30 giga- 
byte' drives used in super- 
computers. 

Northern Ireland has seen 
multinationals come and go, 
resulting in a healthy scepti- 
cism about the real value of 
SUCh hirft pro fi l e , high tprh 
highly mobile investment 

The main and obvious bene- 
fit is the jobs that the factory 
will bring, believes Mr Caul- 
field. Seagate employs 200 peo- 
ple at the moment, and will 
employ 500 by 1 996 and an 
additional 45 in the research 
and development centre. 
Around 100 employees are 
graduates, but the ratio of 
graduates 3 to non-graduates 
will fall by foe tfm*» the factory 
is folly operative. 

The age profile of employees 
Is young; with Michael Caul- i 
field betng one of the oldest at 
only 44. AH employees have at : 
least A-level standard educa- 
tions. 

Seagate win contribute £5m 
a year to foe local economy in 
wages alone, but the amount of 
raw materials bought locally is 
limited. The bulk of the equip- 
ment and raw materials are 
sourced outside of Northern 
Ireland, with notable excep- 
tions . including some bulk 
chemicals and computers. 

Seagate Is in Dory for t ha 
long tom, says Mr Caulfield, 
who points to the worldwide 
research and development base 
as proof. It Is an investment in 
people and the return period is 
at least 5 years, he says, 
adding: “You don’t invest in a 
worldwide research and devel- 
opment centre unless you are 
lure to stay." 

John McManus 


T he announcement last 
week by Hilton Interna- 
tional of its plans to 
build a £l7m <«2fi^5m) 187- 
room luxury hotel alongside 
the Lagan river In Belfast, 
could not have come at a bet- 
ter moment for foe city's 
development planners. 

Coinciding as it does with 
the IRA ceasefire and growing 
hopes that an end to the 25 
years of troubles hi the prov- 
ince may have finally arrived, 
the property market in North- 
ern Ireland, may soon be fac- 
ing a boom of the economic 
rather than the Semtex vari- 
ety. 

The Belfast Hilton will help 
anchor a planned £130m 
investment scheme in the 
Laganbank development site 
just 500 metres- from tin City 
Hall and main shopping cen- 
tre. TMs wfll include a £29m 
2,250-seat concert hall and 
conference centre and some 
450,000 sq ft of new office 
space, as wefi as Commercial 
premises far pahs end restau- 
rants. 

The Laganbank site itself Is 
part of a much larger redevel- 
opment scheme taking place 
alongside the entire tidal 
reach.- of the Lagan river, 
which (Brides Belfast in two. 
The c ompleti on in March fth 
year of the Lagan weir, dose 
to the BSHon rite, has turned 
the 1 Lagan river - formerly a 
somewhat ugly and smelly 
tidal estua ry - into an attrac- 
tive lake amenity to which 
waterfowl, windsurfers, and 
wmrfiirare have already begun 

td^grsEvitate. . 

Mr Mike Swrfrti, tbe director 
of development at Lagamtde 
Corporation; foe body respon- 
sible for dq^rimring the vari- 
ous rites along the river, said 
he is expecting the announce- 
ment of ;tfre first phase of the 
office, development at foe 
Lagenbank site to be made 
shortly. 

The ElOm sale ‘ earlier this 
year of the Abercorn Centre, a 
65^000 sq ft office block, to 
First Trust Bank, baa meant 
that “there is no longer any 
modern office space mdet in 
Belfast; ?>he sakL Moreover, 
arti&s arxrand ■Queen ’ 8 nniver- 

sityy hitherto fa vo ure d by pro- 
fosrieffifdlflrins of. lawyers, 
ammtff rfs^ahd consultants, 
are becpm jng xongesied and 
are. extremdy short of car 
parking space. Tagansfde Cor- 
poriftioa Jsrg&caefore hoping to 
attract abate' ef these firms to 
the t^ueridnlDwfc rite which 
is befog Teforbished with £4m 
in Etfftmds- • 

Mr Ban7%UH&m, the chief 
executive of Ewart pie, the 
Belfast-based property devel- 
opment' cofopany which . is 
jointly buUding foe new hotel 
with foe Baton group, says 
that office rents are in foe 
regtan at £8-8 per sq It. equiva- 
lent to some provincial dries 
on foe mainland - "around £9 
Is break-even fur any new 
office development, and given 
that thrills now no new office 
space in the city, we should be 
able to see a new development 
shortly," be sayg. . 

Figures from foe, valuation 
and lands agency show that 
1.6m of- foe tHBm sq ft total of 
office space hi Belfast is of top 
quality and built to modem, 
high sp ectfi ca tio na, but that 
there h nothing available in 




PROPfiRTY MARKET 


Good news for 


units in excess of 5M00 sq ft 
and very few units from 
20,000-50,000 sq ft 

The first phase of foe antici- 
pated Laganhwnk development 
wm involve the construction 
of 150,000 sq ft of office Space. 
There is a market take-up of 
space of £10,000 sq it per year, 
aceordtog to Ewart, down con- 
siderably from some. 750,000 
sq.ft par year to. foliate 1980s 
when go v ernm ent offices were 
taking Uie bulk . of that 
through relocation schemes. 
But this should be sufficient to 
make the ongoing develop- 
ment of foe site feasible - 
“with, foe concert hall, the 
hotel and the first phase of the 
office development foe sfte 
wffl be viable” says Mr GflU- 
gan. 

Other key sites along the 
Lagan are the 26-acre former 
gasworks, upriver of the weir, 
and the even-larger Abercorn 
basin fast below the weir on 
the east side , of the river and 
adj oining the docks. 

Mr Smith says that the first .' 


developments at the gasworks 
are expected to be announced 
later this «ntnwm and wfll 
include public space, perfor- 
mance areas, and business and 
commercial premises. Adjoin- 
ing both Catholic and Protes- 
tant housing estates which 
have been rocked by sectarian 
atrocities in recent years, ft is 
hoped that the development 
will help build a bridge 
be tw e en foe two c ommunitie s, 
especially if a new peaceful 
era lies ahead. 

Devefopments at the Aber- 
com Basin are to await the 
completion next year of foe 
£6Sm crossharbour road and 
rail bridges which skirt the 
site. Wben complete, together 
with a motorway link-up to 
the east which is due for com- 
pletion in 1998, the Abercorn 
Barin is to be marketed as a 
rite for fight industrial devel- 
opments, having first-class 
access not only to the city cen- 
tre, but to the ferry port and 
the Belfast city air po rt and to 
foe road and rail network 


throughout Ireland. 

The only sector of the BeL 
fast propiertrmaihiiet not likely 
to see any Mg developments 
for the next three to fear years 
is to retailing The Castiecourt 
shopping complex to the dty 
centre, together with se veral 
developments on tire outskirts 
which are bring slowly expan- 
ded, has left the dty with a 
small surplus of retail space. 

The: valuation and lands 
agency notes, however, that 
despite a static market in 
rente tor tbe past two years, 
recent survey data point to 
only 2 per emit of retail space 
being onlet, while in prime 
pitches "there remains a 
potential shortage of space". 
Prime rents in these locations 
at around £140 per sq ft “stand 
comparison with almost all 
good retail locations outside 
central London," foe agency 
says; 

Already well-served with 
modern retail developments 
and extensive pedestrianised 
areas, having first class access 
by road, ran, sea and air, and 
cm the verge of seeing a series 
of new office, commercial and 
light industrial developments 
alongside the river Lagan, Bet 
fast is potentially one of the 
fastest developing cities in foe 
UK- - and if peace does came, 
one of tbe most attractive des- 
tinations for relocation. 

Tim Coon© 


ii Lame, represents a 
quite dynamic export port 
- it is camo/mad, efficient 



higk of service, 

- Dr. X» OTWBt, CUm, 
TntiatttkCJLO.'* 
HJHrfn&Cwtw* 

TWPMrtlmmjoferfcfeBMtk 
•etatfgeto wop.taM M piM h 
MHLsml Dr.Tu V OfMar.«*M 
" ifcHm 




PBnVftBMK a* me tut 

tomonan emott tor btteeme 
rati wHe w rat awam pwMBMi 

D(. OUrir hawaf On Raw Wnta 
taWBwtohiwifeawMda* . 
■jAllMMM BtttePMatlJfM. 
Tofcnbnrijne nNnthMtefcr 
ywr Mum, mil n i mtaia*. 


PORT OF 

Larne 


f"*: 
tut* . 

mis 

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k>™. 
t* i * 

s.- . 


am. Madam.- 






25 



FINANCIAL, TIMES THURSDAY SEPTEMBER 15 1994 


NORTHERN IRELAND III 




Trade links are expected to 
be substantially improved 
over the next five years as 
they are a priority in the 
Republic's IR£7bn National 
Development Plan, reports 
John McManus 


T rade between Northern 
Ireland and its nearest 
neighbour, the Republic 
of Ireland, is abnormally low - 
and skewed heavily in favour 
of tbe Republic. 

Northern Ireland's exports to 
the Republic represent just 
under eight per cent of the 
total Goods and services flow- 
mg the other way represent 
about six per cent of the 
Republic's total exports. 

The north's main exports to 
the Republic are live animato 
and food products, including 
beverages, which accounted for 
around 40 per cent of the 
£468m exported in 1992. Other 
leading exports include fertil- 
iser, textiles and clothing. 

Food products and live ani- 
mals account for around 46 per 
cent of Northern Ireland's 
imports from the Republic, 
which were £S25m in 1992. 
Manufactured goods, including 
chemicals, industrial machin- 
ery and road vehicles, 
accounted for 47 per cent of 
imports. 

The reasons for the low level 
of trade are both infrastruc- 
tural and historical. The antip- 
athy of certain parts of the 


NORTH/SOUTH TRADE 


Invisible barriers start to fall 


Northern Irish business com- 
munity to trading with the 
Republic, and the apprehen- 
sion of companies in the 
Republic abont trading in 
Northern Ireland, are widely 
acknowledged, but unquantifi- 
able. 

Current political develop- 
ments may go a long way 
towards breaking down these 
invisible trade barriers and 
complement the efforts 
in recent years to overcome 
the tangible, infrastructural 
barriers. 

Over the last three years the 
two leading business organisa- 
tions in Ireland, the Confedera- 
tion of British Industry in 
Northern Ireland, and the Irish 
Business and Employers Con- 
federation (Ibec) in the Repub- 
lic, have undertaken a number 
of joint initiatives aimed at 
boosting cross border trade. 

Between them, Ibec and the 
CBI represent 4,000 companies 
and around 90 per cent of man- 
ufacturing jobs in Ireland. The 
advent of the single market in 
1992 is seen by many as the 
catalyst that led the two organ- 
isations to look at ways of 
overcoming obstacles to trade. 

The single market swept 
away the biggest of the the 
physical obstacles: delays at 
the border for customs and 


security checks could at one 
time add up to five hours to 
the three-hour journey 
between between Belfast and 
Dublin. 

The CBI and Ibec established 
a joint council in 1991, which 
drew up a three year North- 
South market development 
programme. 

The programme set out to 
address what the joint council 
perceived to be the four biggest 
obstacles to trade, according to 
Mr William Poole, the Confed- 
eration of British industry's 
director of business develop- 
ment for Ireland. 

T he biggest problem, 
according to Mr Poole, 
was the lack of available 
information, in both the 
Republic and Northern Ireland, 
about opportunities on the 
other side of the bonier. 

The second main obstacle 
was perceived to be the poor 
state of road and rail links 
between the two parts of 
Ireland. 

The two other big problems 
identified by the joint council 
were the sort that would be 
associated with any export 
market the risk of adverse cur- 
rency movements and the diffi- 
culties of pursuing payment in 
a different jurisdiction. 


Ulster companies are leading suppliers to British retail 


chains, reports John McManus 


The textile base 
remains strong 


Pyjamas and tights may not 
have the glamour of haute cou- 
ture, but the manufacture of 
these staple items of clothing 
for British retailers, such as 
Marks & Spencer, keep more 
than 16,000 people in work in 
Northern Ireland. 

Garment manufacturing is 
now the most important sector 
of Northern Ireland's textile 
industry, itself the most signifi- 
cant manufacturing sector in 
employment terms, with 
annual sales exceeding Elba. 

Gut ot around LQQ/SQ0 manu- 
facturing jobs in Northern 
Ireland, around 26,000 are in 
the textiles industry, of which 
garment manufacture accounts 
for around 16,000. An addi- 
tional 10,000 people are 
employed indirectly by the tex- 
tile industry. 

The strength of Northern 
Ireland’s garment industry is 
due to a combination of fac- 
tors: the historically strong 
textile industry base; the 
growth of the British chain 
stores: and the high level of 
government support available 
since the start of the troubles 
25 years ago. The skilled work- 
force and infrastructure devel- 
oped by the linen industry 
allowed Northern Ireland- 
based garment manufactures 
to start supplying British retail 
chains, and to grow with them 
as they came to dominate the 
clothing market in Britain. 

“Chain stores account for 60 
per cent of clothing sales in 
Britain and provide the volume 
demand required by manufac- 
turers to achieve economies of 
scale." explains Mr Bruce Rob- 
inson. the deputy chief execu- 
tive of Northern Ireland’s 
development agency, the 
Industrial Development 
BoonUTDB). 

The generous level of capital 
grants available in Northern 
Ireland over the last two 
decades - up to 40 per cent 
more than in the UK - has 
meant that local companies 
have been able to equip them- 
selves with the expensive 
machinery needed to supply 
products of the quality 
required by chain stores. 

Northern Ireland’s garment 
manufacturers would prefer to 
ex plain their success in terms 
of increased competitiveness. 


“Our competitive edge is bet- 
ter design, a very dose rela- 
tionship with the customer, 
and a quick response time,” 
explains Mr Sean O'Dwyer, the 
managing director of Des- 
. monds, a supplier to Marks 
and Spencer, which employs 
2,700 people, making nightwear 
and other clothing. Northern 
Ireland-based suppliers, such 
as Desmonds, offer British 
retailers the facility to drop 
unsuccessful lines in mid-sea- 
son and increase production of 
successful ones, so that they 
avoid being left with surplus 
stock at the end of the season. 

Although Far Eastern manu- 
facturers might be more com- 
petitive on a cost basis, they 
are at a severe disadvantage 
when it comes to response 
time. The only way in which 
they can match Northern 
Ireland based suppliers is to 
air-freight their products, 
which is prohibitively expen- 
sive. It is an advantage which 
Desmonds has successfully 
exploited. 

Expansion plans 

The family-owned firm 
started supplying Marks and 
Spencer 40 years ago. and now 
sells the chain store about 
ElOOm worth of clothing a year 
- “we’re pretty confident that 
we can increase output. By 
1996 we plan to have increased 
volume by 40 per cent," com- 
ments Mr ODywer. Desm o nds 
plans to invest about £5m 
under the expansion plan 
creating a further 600 jobs. 

The outlook for the garment 
sector is better now than it 
was ten years ago, believes Mr 
Terry McCartney, the chief 
executive of Charnos, which 
has extensive textiles interest 
in Northern Ireland through its 
Adria subsidiary. 

“We have seen the industry 
being weakened by cheap 
imports, but I think that is 
changing and we are winning 
back market share through the 
quality of our service and 
design." he explains. Adria, 
which produces branded and 
own-brand hosiery and lingerie 
for UK retailers has increased 
employment by 250 this year, 
opening a £5.4m lingerie fac- 
tory in Derry. The company 


plans to opai a new hosiery 
knitting factory in Strabane 
this year and hopes to employ 
over 1,500 people in Northern 
Ireland by the end of 1996. 

The garment industry's 
strength is not reflected in 
other parts of the industry, 
however - particularly carpet- 
making. Last month, textile 
group Richards announced it 
was closing its carpet-making 
subsidiary in Bangor. Spence 
Bryson, with . the- loss of J75 
jobs. The closure was blamed 
on fierce competition in the UK 
carpet market 

“The performance of the car- 
pet industry is linked to activ- 
ity at retail level and the num- 
ber of new housing starts," 
according to Mr Desmond Mor- 
gan of the Northern Ireland 
Textile Association - “these 
have been very slow to pick up 
and matters have not been 
helped by the entry into the 
UK market of the US carpet 
giant. Shaw International." 

Textile yarns and fabric are 
a very important sector of the 
industry in Northern Ireland 
and are set to become more so 
with the decision of Taiwanese 
group, Hualon, to set up near 
Belfast. Although questions 
have been raised about the 
appropriateness of the decision 
to give £61m in grants to Hua- 
lon. the 1,800 jobs which the 
project will create in Belfast 
are very welcome. 

The folly integrated textile 
plant will dye, finish, weave 
and spin nylon, cotton and 
polyester-cotton fabrics. 

Other textile companies such 
as cotton spinners and weav- 
ers, Fruit of the Loom and 
Courtaulds Textiles, form the 
second largest sector in the 
textile industry hi employment 
terms, accounting for the bulk 
of non-garment employment 

The linen Industry remains a 
si gnificant employer, although 
it underwent rationalisation in 
the mid-1960s and 1970s. North- 
ern Irish manufacturers, 
who produce about 20 per cent 
of Europe’s linen, have been 
forced to move away from their 
-traditional market, which was 
household fabrics. However, 
the return to fashion of natural 
fabrics, has given linen spin- 
ners a new lease of life in 
export markets. 


The problem of lack of infor- 
mation was addressed through 
the collation and dissemination 
of as much information as was 
available, and the organisation 
of contact meetings for various 
industry sectors. 

“The core of activity was to 
bring together companies from 
North and South, matching 
buyers with sellers and identi- 
fying and promoting market 
opportunities,” explains Mr 
Poole. 

In total, 25 meetings were 
held, involving 530 companies 
split more or less evenly 
between Northern Ireland and 
the Republic. 

“The key sectors in which 
we believed cross border trade 
conld be encouraged were tex- 
tiles, food, engineering - 
including software - and sell- 
ing to the public sector," Mr 
Poole explained. 

The programme has been 
highly successful and high- 
lighted the potential for 
increased cross border trade, 
Mr Poole maintains Six North- 
ern Irish food companies won 
orders worth £386,000, while 
four engineering companies 
have got £lm worth of busi- 
ness. 

More than 60 leads and 
£390,000 worth of business 
were generated by the software 


I n popular perceptions of 
Northern Ireland, the two 
huge gantry cranes at the 
Harland and Wolff shipyard in 
Belfast loom as large as an 
Ulster fried breakfast or the 
booming voice of the Rev Ian 
Paisley. 

But while neither of the lat- 
ter are likely to diminish fa 
vbhnue or disappear from the 
Northern Ireland scene in the 
coming few years, the same 
co uld n ot be said with total 
certainty of the shipyard. 

The Harland and Wolff 
cranes, once the most potent 
symbol of Northern Ireland’s 
manufacturing industry, may 
become redundant by the end 
of next year if the shipyard is 
unable to win new orders in 
the face of increasingly stiff 
international competition. 

The hull of the last order on 
the yard's books - a Capesize 
bulk c ar rier - is taking shape 
on the floor of the main build- 
ing dock, one of the largest 
building docks in the world, 
designed to accomodate ves- 
sels up to 1.2m tons dwt. twice 
the size of the largest ship 
ever built. 

The 1st ship is a relatively 
modest 162,000 dwt Capesize 
bulk carrier, but is one of a 
new generation of bulk carri- 
ers and tankers featuring 
enhanced structural and safety 
features in which H&W now 
specialises. 

Mr Per Neilsea, chief esecu- 


S ome of the elderly visi- 
tors to Northern Ireland 
arriving through Larne 
might remember the port from 
their World War Two days, 
writes Tim Coone. 

The huge logistical task of 
rapidly embarking hundreds of 
thousands of troops and tens of 
thousands of vehicles for the 
Normandy invasion in 1944 
was tackled by routing part of 
the invasion force through 
Larne, making use of its ramp 
loading fanflitias - th gp almost 
unique - which allowed 
vehicles to be driven directly 
aboard the ships used far the 
invasion. 

Today, the samp techniq ue is 
allowing a different kind of 
invasion to take place: Larne 
now handles an average of 
1,000 cars a day - 85 per cent of 
Northern Ireland’s tourist traf- 
fic. Last year. L8m passengers 
travelled through the port, 
sli ghtl y more than the popula- 
tion of Northern Ireland itself. 
Moreover, Larne is now the 
principal roH-oa-roll-off <ro-ro) 
freight port for Ireland han- 
dling an average of 550 con- 
tainer vehicles every day in 
each direction. In the UK, this 
makes it is second only to 
Dover. 






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companies which took part in 
the programme, he adds. 

The joint council is now 
completing a second pro- 
gramme. which will run for 
five years and look particularly 
at the poSSibOzty Qf m massing 
cross-border trade by small 


bumnesses, which are seen as 
vital creators of new jobs. 

Northern Ir elan d’s small busi- 
ness sector represents the 
province’s best opportunity for 
job creation and economic 
expansion. 

“In marketing terms, it 


SHIPBUILDING 


maites sound business sense to 
look at developing export busi- 
ness with a trading partner on 
our doorstep," explains Mr Bill 
Jeffrey, chairman of the Feder- 
ation of Small B usinesses in 
Northern Ireland. 

The joint council also com- 


A sombre message 


tive Of the Harland and Wolff 
group, estimates as many 
as SOD foewbulldings* of ships 
over 100,000 tons dwt will be 
required over tbe next five to 
six years - the category in 
which H&W specialises. 

Some 25m tons of bulk carri- 
ers and tankers are now on 
order around the world. Tim 
H&W yard has a capacity to 
build between four and six 
such ships per year, so the Bel- 
fast builder would be aiming 
to win only around 5 per cent 
of all orders worldwide, not - 
it would seem - an impossible 
task. 

Mr Neilsen points out 
though that world shipyard 
capacity is growing and that 
there have been big productiv- 
ity increases in existing yards, 
“there is more than enough 
capacity to meet the demand 
for renewing the fleet" 

The problem for H&W, 
which reported an operating 
loss of £10.lm for 1993, is that 
direct and indirect subsidies 
paid to competing shipbuilders 
overseas "including several 
countries in the EC" is making 
it Impossible for the Belfast 
yard to compete on price. 


despite large productivity 
increases that have been 
achieved In recent years. "We 
can compete on cost with the 
best shipbuilders around. We 
have the cheapest overheads 
compared to similar ship- 
yards," he claims. 

Since the yard was priva- 
tised in 1989, productivity has 
doubled. Tbe number of man- 


improved ship financing 
facilities are needed, 
says Harland and Wolff 

hours required to produce a 
Capesize ship has been cut in 
half he said, and overall work- 
force numbers in the ship- 
building division have been 
cut from 2*50 to 1.400. 

“We’ve done everything that 
has been asked of ns through 
tbe privatisation," be says. 

Restrictive work practices 
have been eliminated, flexible 
work hours have been intro- 
duced, labour costs have been 
sharply reduced, and great 
emphasis is laid on quality 
control - “the employees have 
been prepared to take up the 


challenge" he says. A techni- 
cal co-operation programme 
has been in operation for sev- 
eral years with Kawasaki 
Industries in Japan, and the 
management style at the yard 
is now largely modelled on the 
Japanese system. 

At the same time the yard 
has given wholehearted sup- 
port to the government’s pol- 
icy to eliminate all shipbuild- 
ing subsidies. But Mr Neilsen 
now wants the government to 
either improve ship financing 
facilities through the govem- 
ment-run Ship Finance Mort- 
gage Corporation (SMFQ or to 
tackle more effectively those 
countries that continue to pro- 
vide direct or indirect subsi- 
dies to their shipyards. 

He says tbe norm for many 
foreign shipyards Is to offer 
finance guarantees for up to 
80 per cent of the cost of con- 
struction, repayable over 12-15 
years through government- 
backed finance schemes. In the 
US, ship finance is available 
for up to 87.5 per cent of cost, 
repayable over 25 years, if a 
shipowner uses a US yard. In 
the UK, the SMFC offers only 
30-60 per cent of the capital 


A thousand cars a day pass through Lame port 

Busy highway to Europe 


For Ireland’s food industry 
and the growing number of 
companies following just-in- 
time manufacturing tech- 
niques that have chosen either 
the province or the Republic to 
locate their factories to supply 
the European market, Lame 
port is a vital link between 
them and their customers, 
same ol which are located In 
the heart of Europe. 

Mr Denis Galway, the port’s 
director and general manager, 
said that the frequency of sail- 
ings from the port and the 
short sea crossings enabled a 
road haulier to have a 40- ft 
trailer load "in Paris within 24 
hours and well fate Germany 
in 48 hours.” 

Four ro-ro routes now oper- 
ate between Lame and the 
British mainland, offering 
hauliers a choice of 18 sailings 
each way daily, evenly stag- 
gered throughout the day and 
night Four ro-ro jetties, three 
with double ramps and the 
fourth recently having under- 


gone a £7m improvement, 
ensure a rapid turnaround for 
the ferries and little delay for 
the hauliers. Individual loads 
of up to 180 tonnes can be 
accommodated. 

Half of tbe cargo bandied 
through tbe port is perishable, 
such as meat and dairy prod- 
ucts and fresh vegetables - 
“speedy delivery for these is 
essential With tbe frequency 
of sailings from here we can 
ensure that these products can 
leave Lame in the evening and 
be on supermarket shelves in 
Britain first thing in the morn- 
ing," says Mr Galway. 

Fruit of the Loom, the US 
clothing manufacturer, sup- 
plies the European market 
from factories located on both 
sides of the Irish border, using 
Lame as its main port to 
Britain and beyond. 

Mr Tony O’Reilly, the chair- 
man of the Heinz food corpora- 
tion. has cited Lame port as 
one of the reasons for locating 
a new pizza-topping factory for 


the UK market in Ireland 
rather than in England or 
Wales. 

According to Mr Galway, 
more than 20 per cent of traffic 
through the port ori ginates in, 
or is destined for, the Irish 
Republic. 

The completion of the cross- 
harbour road and rail link in 
Belfast in February next year 
will finally connect Lame and 
the north-east of the province 
with the rail network through- 
out Ireland, opening up further 
possibilities of attracting new 
freight and passenger traffic to 
the port from the Republic. 

A rail freight terminal at the 
port has been proposed, while 
the passenger terminal is 
already one of the best and 
newest on the west of the Irish 
Sea offering airport-type facili- 
ties for passengers. Bus and 
rail services operate directly 
from the terminal. Even the 
personal hygiene of sweaty 
lorry drivers has been catered 
for - a special rest and shower 


missioned management consul- 
tants to produce a study on the 
potential for the development 
of an economic corridor 
between Dublin and Belfast, 
and thus is due for publication 
shortly. 

- Such a scheme has been 
mooted by businessmen for 
many years, with estimates of 
the number of jobs it could cre- 
ate ranging from 7.000 to 
70,000. The report is expected 
to highlight once again prob- 
lems in the area of infrastruc- 
tural links between Northern 
Ireland and the Republic. 

The links, however, are 
expected to be substantially 
unproved over the next five 
years as they are a priority in 
the Republic's IR£7bn National 
Development Plan for spending 
the next tranche of European 
Union structural funds. 

The report is also expected to 
show that “what is really lack- 
ing is normal relationships 
between companies because of 
a lack of interaction," explains 
Mr Geoff MacEnroe, the direc- 
tor of IBEC’s North-South 
Business Development Pro- 
gramme. 

The development of a corri- 
dor would give Northern 
Ireland companies better 
access to the island’s largest 
concentration of consumers, in 
Dublin and its surrounding 
towns. Such a corridor might 
go some way to to help redress 
Northern Ireland's trade defi- 
cit. which is a relatively recent 
development In 1981. Northern 
Ireland actually enjoyed a 
small. £2m trade surplus with 
the Republic. 


cost payable over 8J> years. 

Mr Neilsen says that using 
the SMFC scheme, a shipowner 
would be likely to face a nega- 
tive cash flow for the first 
seven years of operation, mak- 
ing it uneconomic to build new 
tonnage in a UK yard - "it 
wifi not matter how good our 
productivity is if the builder 
cann ot finance the ship. An 
owner needs a lot of cash to 
build at H&W." 

There has been sympathy 
expressed in Whitehall, he 
says, bnt so far this has not 
resulted in action: “If the gov- 
ernment isn’t prepared to lis- 
ten to us, then clearly we will 
have to go in another direction 
and rethink our support for a 
‘no-subsidy* policy." 

“I used to be an optimist 
But I feel it is going to be 
difficult to compete commer- 
cially if we are not playing on 
a level field with our competi- 
tors. It is going to be 
extremely difficult to be in 
business in the longer term." 

It is a sombre message com- 
ing from one of Northern 
Ireland's oldest and most 
famous industries. And hardly 
one likely to bring cheer to 
those problem areas of Belfast 
where unemployment in some 
neighbourhoods such as the 
Lower Falls Road or Sandy 
Row is higher than 60 per 
cent 


Tim Coone 


room has been provided for 
them at the passenger termi- 
nal 

Adjacent to the port, and 
owned by it a 100-acre site is 
now being offered in lots of up 
to 10 acres for development 
which Mr Galway believes will 
be attractive to manufacturers 
and wholesale distributors 
looking for a location from 
where to supply their markets 
efficiently. 

A new era of competition for 
Larne began recently, though, 
with the appearance of new 
shipping on the Irish Sea. The 
Seacat service to Belfast with 
its fast crossing times, has 
been able to take around 15 per 
cent of the tourist traffic into 
the province in the past two 
years. In 1993, Stena Sealink 
also opened op a new Seacat 
service from Holyhead to Dim 
Laoghaire (near Dublin), with 
an Irish Sea crossing time of 
only one and half hours (com- 
pared with two and half hours 
from Larne to Stranraer). 

Mr Galway acknowledges the 
threat but he says: “We are not 
afraid of competition. We 
believe we can compete on 
price, and the evidence shows 
that ferry operators here have 
sustained their market share." 


fejf'i- 1 ' 











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f * 



FINANCIAL TIMES THURSDAY SEPTEMBER 15 1994 



COMMODITIES AND AGRICULTURE 


UK set to maintain 
cereal crop yields 


Gy Deborah Hargreaves 


The UK wheat crop Is expected 
to rise by 3 per cent this year 
in an overall cereals harvest 
little changed from last year at 
19.6m tonnes, according to pre- 
liminary estimates by the 
National Fanners' Union. 

The French wheat crop is 
expected to be 4 per cent 
higher than last year, hut Ger- 
man barley yields could be 10 
per cent lower because of 
drought, the NFU anticipates. 

The NFU points out that, 
although British cereals output 
is likely to be little changed 
from last year's 19. 5m tonnes, 
the composition of die crop is 
expected to change signifi- 
cantly. 

Wheat production is expec- 


ted. to rise hut barley output is 
forecast to fell 
This reflects price expecta- 
tions Hf rie by fanners when 
planting their crops. Bad 
weather caused wide varia- 
tions in crop yields, but 
affected both wheat and barley 
crops in a dmtiar way. 

Crop yields were broadly 
higher in the south and south- 
east and lower in the east Mid- 
lands and East Anglia, where 
heavy rain delayed spring 

p lanting . 

The NFU also pointed to 
much higher variations in 
yield within each region than 
had been recorded in previous 
years. 

The area sown with wheat 
increased by 4 per cent for the 
1994 harvest, but wheat yields 


fell slightly from 7.3 tonnes per 
hectare to 7.29 tonnes per hect- 
are, produring a crop of l&2&n 

fnnnpg 

Bailey planting continued its 
dow n w ar d trend with the win- 
ter barley area falling by 5L5 
per cast in England and the 
spring barley planting drop- 
ping by 9.6 per cent. 

Oilseed rape sowings are 
estimated to have risen by 5£ 
per cent hut yields in England 
and Wales were down by 6 per 
cent, leading to production 
remaining unchanged at 
around lm tonnes. 

In France, the area sown 
with cereals declined by about 
3 per cent overall, but most of 
the drop was in the maize 
areas. Wheat planting 
increased by 2 per cent 


Farmers 
call for 
cut in 
set-aside 


India takes on wheat giants 

Farmers can compete now price Garbs have gone, says Shiraz Sidhva 




By Daborah HapwMC 


MARKET REPORT 


Confusion 
sends coffee 
tumbling 


Shrinking surplus 
puts platinum level 


By Deborah Hargreaves 


By Kenneth Gooding, 
Mining Correspondent 


International cofree prices 
tumbled by $153 a tonne yester- 
day as London traders 
expressed confusion over Bra- 
zilian government plans to halt 
stockpile sales. The November 
futures contract in London 
slipped to $3,840 a tonne. 

Brasilia halted its weekly 
auction of the government cof- 
fee stockpile when it failed to 
dampen domestic inflation. 
Vesterday, influential growers’ 
groups called on the govern- 
ment to restart the auctions, 
claiming their members would 
be adversely affected. 

International prices were 
boosted last week when Bra- 
silia called a halt to the auc- 
tions with the market touching 
$4,060 a tonne - dose to an 8% 
year peak. But prices dropped 
by $200 a tonne with specula- 
tion that the government 
would resume export sales. 


The platinum market is likely 
to be in balance this year for 
the first time since 1989, 
according to Mr Michael 

McMabnn [ chairman of Tm pnla 

Platinum, the world’s second- 
biggest producer. 

Persistent supply surpluses 
in the past four years have 
depressed prices. Now Impale 
Is forecasting that last year’s 
surplus of 365,000 troy oz will 
fall to 80,000oz. 

Mr McMahon suggested yes- 
terday that even this potential 
surplus might be eroded 
because car companies - the 
biggest users of platinum - 
had been re-stocking at a 
greater rate than Tmpnla hgiT 
anticipated. 

Over-supply hit the murlcrt 
after South African producers 
increased capacity following a 
surge in prices to nearly $550 
an ounce in the late 1980s. 

Impala’8 own expansion 


plans have hflftn substantially 
reduced and two platinum 
mingi ]n which it an in te r- 
est - Kennedy's Vale and Croc- 
odile River - have been moth- 
balled, while development of 
ttw Mpftqtnn project been 
suspended. 

Mr McMahon said it would 
take about three years to bring 
the two urniaa back fatn pro- 
duction. Although the industry 
could look forward to “steady 
but unexciting* growth in 
demand for platinum, “this is a 
commodity-type industry now 
and there are ore reserves that 
can be brought into production 
to stop us getting too fat and 
happy". 

In this context, the decision 
of BHP, Australia’s biggest 
group, to proceed with a plati- 
num miwa in Zimbabwe was 
“misguided.” suggested Mr 
McMahon. 

Platinum reached a 354-year 
peak of $430 (£277) an ounce in 
July. Last night the price 
closed in London at $417.50. 


The European farmers’ 
organisation, Copa, yesterday 
called for a reduction in the 

mnnp nt q£ aa tiak and Qflseed 

land set aside or left to lie fal- 
low in the 199495 growing sea- 
son und er a European Union 
scheme. 

French and British farm 
liriWiR have also united for sub- 
stantial cuts in set-aside. The 
UK National Fanners' Union 
Thiii raTinri on European Union 
agriculture ministers to 
rethink the scheme at next 
week’s council meeting in 
Brussels. 

Poor weather and current 
set-aside obligations are expec- 
ted to cut this year's EU grain 
harvest to between 158m and 
160m tonnes compared with 
166m tonnes last year. The 
average harvest before the 1992 
C ommo n Agricultural Policy 
reforms was 185m tonnes. 

Copa said it urgently 
requested a reduction in the 
set-aside "which will not affect 
the good functioning of the 

market”. 

Sir David Naish, president of 
the NFU, warned that if set- 
aside was maintained at its 
curr en t level of 15 per cent, it 
could prove difficult for EU 
farmers to maintain their mar- 
ket 

The European Commission 
says that 15 per cent was never 
meant to be a sacrosanct fig- 
ure. “It’s a management tool - 
the figme can go up or down 
depending on foe read outcome 
of the harvest" an of ficial said. 

EU cereals stocks have 
dropped from 38m tonnes to 
16m tonnes in the past year. 
Farmers' leaders say this could 
mean European customers 
having to import unless foe 
set-aside Is reduced. 

Sir David is also urging min- i 
isters to take the matter up as 
quickly as possible to allow 
tima for farmers to adjust 
planting patterns this autumn. 


The Indian government’s 
dedaton last week to abolish 
the minimum export price for 
durum wheat is expected to, 
boost exports and allow Indian 
wheat fanners to compete with 
major producers like the US, 
fiimarfa and Australia. 

The food ministry has also 
.proposed to the commerce min- 
fetry t hat the minimum export 
price of $200 (2129) for non-bas- 
mati rice be lifted in an 
attempt to reverse the fall in 
rice sales make this year’s 
huge surpluses competitive on 

In tenattiCPal mnrfertn- 

The moves reflect India's 
willingness to compete with 
the world's wheat giants in 
lucrative markets in north' 
Africa and southern Europe, 
where durum wheat is used for 
making pasta. The relaxation 
of export curbs is also in. keep- 
ing with the Gatt treaty, to 
which is a signatory. 

Mr Sanjeeva Reddy, director- 
general of foreign trade, said 
the minimum export price of 
$160 a tonne for durum was no 
longer necessary local 

production was rising and 
wheat supplies for India’s 
domestic market were ade- 
quate. 

Exports of durum or superior 
quality wheat were permitted 
by the government last Novem- 
ber, subject to a floor price of 


~r& 

$160 a tonne and a ceiling of 
8004)00 todnes a year! The price 
did not prove competitive an 
world markets, and durum 
exports feflto 59,O0O tonnes in 
foe year-ended March 31, down 
from 3.7m tonnes in 199233L 

The government, which had 
rejected^ a -proposal from the 
commerce ministry to scran 
foe; floor price last year, is 
mare confident of being 
BgT famfffr fiwit bh« year. A tam- 
per durum harvest is expected 
next- AprfljtiEter good monsoon 
wring ttjkfflmmwr -i-:- 

According., to government 
estimates released in Jtme, 
India produced 57 Am tonnesof 
wheat* this# year, up from 
56JJ6m foe 'previous year. No 
separate estimates for d u rum 
are available, but officials- in 
the, agriculture ministry Say It 
accomats -for . a negligible 
amnrtwit of thn tnfert - 

In Punjab, fanners -in 
Khanntf, Ludhiana district, 
Asia's largest grain market, 
have hegun to grow yellow- 
rust resistant varieties of 
durum. The formas know tbat : . 
while India’s low-value bread 
wheat r-' used for domestic cmr- 
sumption — «m fctrfi a maxi- 
mum price of $100 a tonne, 
durum would yield an addi- 
tional $10 a topine an the mar- 
ket 

. About 10 per cent of Punjab's 


total wheat area is under 
durum,' with a total production 
of 0.8-lm . tonnes. A small 
' amount of durumis also grown 

in- central and southern 

: farite, foe world's fourth 
largest wheat growing country, 
.has no tradition of consuming 
- pasta, which remains an essen- 


tially western product and 
avaiiahUky is confined, to the 


av ailability jts confined to the 
dries. The per capita consump- 
tion of pasta products in foe 
country is 80 grams a year 
/compared with 5kg in the US 
mid 30kg in Italy, but govern? 
. menfr incentives to encourage 
the growth of durum for export 
may help the minuscule 
"domestic pasta market to grow 
as wen. . 

The arrival of several food 
multinationals vying - for 
India’s vast untapped markets 
may fl gHiw m wH i r a g i) d m - m w 
wheat growers. Pizza Hut, foe 
American food chain, win need 
durum wheat to make its pizza 
bases. 

’Flu* ruT T^nw ral nf flwml n lwii i m 

export price does not necessar- 
ily guarantee increased 

c nrprirrh t Twdffl far-oa Stiff com- 
petition from developed coun- 
tries Hke the US, which heavily 
subsidises its sales using funds 
available* under its export 
enhancement programme. 
White India has difficulty real- 
ising a price of $100 a tonne. 


tiie price of US wheat far Asian 
markets varies from $122 a - 
t onne for hard red winter 
wheat (HRW) to $218 a tonne 

for d i ir o m nan-specified (DNS). 

Officials in the commerce 
ministry are even more pessi- 
mistic about the performance 
of non-basmati rice on the 
export market, even after the 
minimum floor price is lifted. 
White there was a sharp rise in 

hncmnH purp orts when the min- 
imum export price was 
removed in January, Indian 
non-basmati varieties would 
find tt hard to compete Inter- 
nationally, even without a 
floor price. 

Non-basmati exports 
slumped to 3,984 tonnes last 
June from 13,096 tonnes in 
April 

Officials say that Indian 
foodgrains, especially rice, can- 
not compete internationally, 
mainly because of the high lev- 
els of form subsidies in devut 
oped countries. Indian food- 
grains become even less 
competitive once transport and 
loading costs have been added. 

“Once the Uruguay Round 
agreement is implemented and 
farm subsidies in developed 
countries reduced gradually, 
India's competitiveness should 
increase dramatically." says an 
official from the commerce 
ministry. 


0 

ilH" 


Sawmill talks may restart I Malay rubber imports up 


By Robert Ofbbens 
In Montreal 


A drib in Rritfoh Columbia's 
coastal logging and saw mill- 
ing industry may yet be 
averted. - * 

Mr Gerry Stoney, president 
of the IWA-Canada, represent- 
ing 15,000 coastal wood walk- 
ers, said Tnfonn al H tiM m p t K ** 
were being made to restart foil 
negotiations with the employ- 
ers’ group In Forest Industrial 
Relations. 

“We broke off negotiations at 
the weekend because of a log 
jam over pay and job security,’* 
Mr Stoney said in Vancouver 
yesterday. . 


FIR has offered 6 per cent 
over three years plus a C$500 
(£235) aigning boUUS, white the 
IWA-Canada has reduced its 
original pay damand from 18 
per cent to 13 per cent over 
three years. 

“Ihe company must improve 
their offer before foil negotia- 
tions rar resume," Mr Sto- 

ney. “hi any case no settlement 
is likely before the weekend. 
Job security is highly impor- 
tant for us." • • 

Sporadic stoppages by wood 
work ers cat Vancouver inland 
were baited early this week 
after the provincial Labour 
Relations Board ruled that 
they were illegal - 


By Hereon Cooks 
biKuafa-lumpur 


Malaysia- nrriil thn late 1980s 
the world’s blggest natural 
rubber exporter, has hed to 
import record amnoirts of the 
commodity this year to fuel its 
own processing industry. 

Natural rubber imports 
increased by 96 per cent in the 
first five months of this year to 
94,400 tonnes, foe Malaysian 
statistics department said. 

In 1988 Malaysia produced 
lAn tnmrnaa of natural rubber, 
but fob year’s production, is 
forecast to be about lm tonnes. 
Natural rubber exports in the 
first five M ptfin of .the. year 


were down 6 per cent at 365,000 
tonnes. 

Labour shortages, sharp 

Im-ranooc jjj Tand values and 8 

period of low natural rubber 
prices whisk lasted until ear- 
her tihs year have forced many 
growers to turn to more lucra- 
tive commodities like palm oil 
or sell their land for develop- 
ment 

The country's processing fac- 
tories have had to make up for 
a,, shortfall in local supply 
through Increased imports, 
mainly from Thailand »nd 
Burma. 

Malaysia's processing indus- 
try uses about 300,000 tonnna of 
natural rubber each year. 


COMMODITIES PRICES 




BASE METALS 


LONDON METAL EXCHANGE 

(Mew from AmaJssmatad Motel TMbtf 
■ AJLUMMUM, 88.7 PURITY (S par tame) 


Precious Metals continued 

■ OOU) COMBC ci 00 Trey oa^ 3Aroy oej 


GRAINS AND OIL SEEDS 

■ WHEAT ICE g par tonna) 


SaO Oafi OpM 

prtca cMaft tare M W. 


SOFTS 

■ COCOA LCE CEAame} 

' mi uy* 


MEAT AND LIVESTOCK 

■ ugwiisagWM tejgg i 


No.8,559 Set by ADAMANT 


Cuh 3 mftis 

Om» 1557.&4Ui 1582-3 

Previous 1564-6 1588-0 

«BMwv 169071579 

AM Offldri 1564-5 1588-9 

KvbctoSS 1676-9 

OpaniM. 269.164 

Total cMy turnover 64JB0 
■ AUJWaaUMAUJY Spar tonne) 


TaW 1BU23 23 

■ PLATlierei NYMEX (90 Ttay azz Vtroy cgj 


5860 

3905 

- 

80 

10850 

♦050 10650 10660 

10 

24 

0p 

954 

-15 

987 

964 57 

- 5 

Oct 

3915 

3864 6230 

490 

■re 

10755 

♦556 10750 10750 

2787 

10 

Dm 

984 

-12 

1000 

90 Z75» 1A0 

BK 

- 

- 

- 

Jre 

10835 

♦055 10855 10950 

1336 

0 

Mr 

1015 

-13 

1032 

1014 35.10 

587 

M 

3960 

3963 91.425 22573 

Hre 

11150 

♦050 111.75 11150 

150 

7 

■* 

10Z7 

-18 

10(5 

1034 11534 

10 

far 

3062 

3966 13582 

142 

mr 

11455 

+155 11450 11475 

1,10 

K 

JM 

1041 

-13 

1051 

1041 6548 

37 

JM 

401.3 

40IJ 6784 

2 

Jri 

11630 

+5£0 11640 11850 

191 

134 

*0 

1064 

-14 

- 

- 6220 

. 

fal 


186123 6670 

ToW 



750 

40 

ToW 




-8630 

2 jm 

Triri 


■ WHEAT C8T (SJKMbu canWHOfc buririQ ■ COCOA CSCE (10 torews teownaaf 


Oct B082S 46050 70000 AGED 81,747 8,149 

Bee 96.100 4.100 00250 66800 TSJ5S3 4564 

M 87800 4O02S 06100 67725 12.109 1,50* 

far 56125 -0.126 66300 86100 870 881 

JM 80250 40625 60300 66200. 1254 t32 

MM 65200 40250 05200 65260 • 828 12 

T8M 7*788 12269 

■ LIVE HQ8S CME (40 JOOM; oanW10 


AM QfflcW 
Kerb doss 
Open rt. 

Total d eJty turnover 
81 LEAP (S per tennej 

CtoW 
Previous 
HHJMow 
AM OfflcW 
KM dose 
Open M. 

Terel defy turnover 
■ NICKEL (9 par town 


1683-6 

1570-60 

158671580 

1589-6 

16896 


Oet 

4117 

-4.4 

4197 

4115 14524 

1572 

8fa 

379® 

-2® 

380® 

377/4 718 

30 

80 - 

QBE 

-21 

120 

1292 « 

2 

Oct 

3660 -aim 38.100 16550 10578 

15» 

Jm 

417.7 

■45 

4345 

4175 7514 

432 

DM 

392® 

-3® 

30® 

391/2 46278 10514 

Dm ' 

1341 

■21 

103 

130 46911 

55* 

Dm 

39575 

-aim 3B575 30400 11505 

1752 

far 

421.1 

•4/4 

4265 

4305 2563 

0 

Mr 

396/4 

-3® 

402® 

388® 1750 

250 

Mr 

130 

-20 

140 

130 13527 

60 

fab 

MIPS 

-ai73 4020 3950 

6302 

291 

Jri 

4345 

-4.4 

4385 

4235 (S3 

2 


383® 

■3/4 

388® 

383/4 2542 

888 


1418 

-19 

140 

1417 450 

122 

far 

39275 

-0.100 395m 39275 

2545 

97 

0£t 

4275 

-44 

- 

- 227 

10 

Jri 

3S3/2 

-1/4 

384® 

352® 3529 

1507 

Jri 

1444 

-19 

140 

1440 250 

10 

JM 

44.40 

-650 44500 4450 

02 

37 

TtaW 




3470 

25W 

*0 

06/2 

-3® 

- 

18 

3 

80 

1464 

-19 

- 

- 1597 

3 

Ara 



0 

■ i 

■ PALLADIUM NYMEX (100 Troy az.; S/bsy ae^ 

TWri 




7250 1650 

Triri 




73,10 6*1 

T«W 



000 



14650 4625 14680 14600 87 48 

14625 -660 15675 14600 5*49 740 

15000 -080 15120 15020 977 12 

15120 -660 - - IS 1 


■ MAgECgT{5roObumin;ceolslS88>buatwQ ■ COCOA QCCCQ (SDR-a/taonri 


■ 89.VB1 COMEX (100 Troy eg.: Canta/boy ogj 


AMQOdri 64696 

Karp does 

Open W. 82,360 

Total da tfy turnover 14,542 

W UHff per taretej 


5645-50 

8566-70 

685045530 

669WJ 

66196 


Sv 542.8 -66 5460 5444 578 48 

Oct 5442 -32 5460 5460 7 

Mm 6462 -32 ... 

0(c 5467 -69 5554 5460 62568 16270 

4*1 581.1 -68 59 1 

M* 5569 -69 5865 5565 6070 106 

TOM 167278 16428 


ENERGY 

■ CBU0CQ6. NYMEX (42200 US geMs-S/benaQ 


Prevtaue 
HUitow 
AM OffCM 
Kerb d oee 
Open ML 


5300-6 837640 

528990 538970 

6376A340 

627990 63698 

636970 

16279 


ToW daBy tunmr 2200 
■ ZM4C, epecW Mqn grade (3 per tonne) 


Previous 
Hahnow 
AM OfflcW 
Kerb dose 
Open ML 


0868-42 10097 

962-3 10052-6 

907 100WB90 

977-72 100902 

10099 

96206 


ToW W8y axnover 21233 
M COPPBt, prede MS per tonmS 


Ooee 2497-6 3512-3 

Piwta* 2503-4 25199 

«Bhrt0««i 2S1W2485 

AM anew 2492-3 2507-6 

KertJ doee 2001-2 

Open int 216125 

Total defy tunmv 3927B 
■ 1MK AM OMcW tit nMK 12649 
LM9 Ooetng DS reier 12006 



LaM 

BaTa 


apM 



prioa 

(Wp 

■0 

tree W 

Vri 

Oet 

1650 

-032 

17.14 

kip aim to m» 

■re 

1752 

-055 

1754 

160 7950 38757 

Dm 

1751 

-057 

17A0 

1752 5459B 18520 

JM 

1756 

■054 

1750 

1755 366<8 

7521 

Ml 

17.0 

•055 

17.0 

17.42 20463 

4531 

Mar 

17.48 

-024 

1752 

1759 1550 

1714 

TOW 




10111/ 111.11 

■ CRUDE oa. B*e (S/barnQ 




Lataat 

mt* 


fare 



prire 

cfMW 


tear W 

Vri 

Oct 

1673 

■aw 

1674 

1644 64597 22873 

Nw 

1695 

•0.1 a 

15D7 

1559 59544 26409 

DCC 

1612 

0.17 

1615 

1551 2650 

8519 

JM 

1625 

■0.16 

1629 

1955 11542 

1.10 

Fab 

1851 

•0.04 

1631 

18.13 7530 

2539 

Bit 

163S 

-aia 

1935 

1922 9509 

737 

Triri 




TROUT 

98589 


8« zan -3 /b tzm 221 A 69bo 3277 

Dee 222/2 -3M Z24flJ 2229)136431 19742 

■*• 2329) -an 2349) 231A 34407 2228 

■q r 238/2 -39) 240/4 238/2 16511 850 

M 242/6 -an 244/4 243M 16314 l^fil 

3*1 24W -2/2 - - 328 73 

Tew 207^27 apn 

■ BAHLEY LC£ (E per tonnel 

Sep 10250 -050 31 

Nee 10450 40.10 10450 10450 489 10 

Jm 10855 40.15 108.60 10650 382 5 

■tar 109.10 40.10 79 

Hq 11050 ... 21 . 

TOW 1502 is 

■ 8QVAaeA»4S(mpj<)owB*gcaBreiBiMiCTrai) 

Sap 575/4 -89) 581/4 575/4 6486 6S2 

■er 5889) -69) 5729) 5689) 78588 28521 

Jm 577/6 -59) 580/4 5779) 18/QO 2588 

Me 6879) -4/8 SBB/4 588/4 6131 937 

May 594/4 -3/B 5069) 594/2 4585 588 

J* 999/2 -49) 8OTA 09/2 8501 960 

DM 1*6*19 32548 

■ SOYABEAN O*. CUT {60,0000*. cerbAb} 


Sra 2850 4002 2850 2858 6BSB 1,187 

m 2659 -4102 2641 2828 17595 4590 

Dec 2354 -009 2650 2958 41585 16348 

JW 2558 -059 2557 2550 6,157 1532 

Nr 2627 -0.18 2535 2520 7523 2571 

May 2458 -027 2550 245G *557 524 

TOW 86991 8450 

■ SOYABEAN MgA*. CST {100 lone; t9on) 


■ HEATIWQ OS. W7IMBC (42500 US QMS; QMS pjri 


Sep 170.7 -4XS ITU 1705 4,158 6S30 

Oet 157.2 -15 1885 167.1 12547 4570 

Dec 1875 -15 168.7 1575 38557 9529 

JM 1685 -15 1705 mt 9560 2528 

Mar m.4 ‘1J 173 JO 1 715 8581 817 

Nk* 1735 -15 1745 1735 S501 990 

TtM 81528 26279 

■ POTATOES LCE (E/tonna) 


ft* IS 


Mca 


Rm. faf 

■ COEFBE LCE gttomri 


8 fa 

3945 

-10 400 

3920 

250 10 

■re 

39(0 

-10 390 

5775 1350 5.458 

Jm 

370 

-10 3850 

3730 1304 2,159 

Mv 

3725 

-10 3870 

390 

650 432 

mt 

3680 

-10 3785 

3705 

1539 36 

Jri 

3660 

-155 3770 

3680 

624 12 

TOW 




*70* 6»» 

■ COFffiE a C a CSCE(975DO0KcanWI0 

»0 

207.13 

-955 21450 20750 

10 « 

Dm 

212J0 

•950 21 STS 21150 22522 7,735 

Mr 

21140 

-6m 2220 21940 

7, IE 150 

Wmg 

22040 

•650 22150 

22940 

3562 451 

Jri 

221.40 

-950 2220 

2210 

aoo 21 

S«P 

22250 

•650 22550 

2230 

37 7 33 

Triri 




3*501 970 

■ COHSOCO)(UScanWbounc» 


ftp.» 


Me* 


fare, day 

Oonre-Hriy 

204.14 


204.0T 

15(0 91 

■fa ~ 

194-73 


19254 

■ No7 PRBflUM RAW 9UQAH LCE (cara/ba) 

Oct 

1251 

+021 120 

1267 

1701 177 • 

Jm 

1152 

. 

- 

* 

1 tar 

1Z.68 

re . 

- 

0 

Trial 




IT* 177 

■ WHTTE SUGAR LCE SAomri 


Oct 

33640 

+350 33670 3JZ0 

2551 1546 

Sac 

3310 

♦350 33250 3Z70 

35*1 770 

Hre 

33250 

♦350 33250 32610 

7,10 1.10 

■fa 


♦30 000 

530 

S45 25 


332.10 

♦40 3310 32am 

753 10 

Oct 

3i6m 

+370 3)40 3120 

233 10 


■ wgtMjaggwgjitejjMW 


41578 -0-373 42200 41528 7572 1556 

41525 -0400 42529 40550 SOB 0 

42500 -0500 46400 41500 TK) 25 

46200 -0528 46550 43500 148 29 

42550 -0375 46050 42500 35 9 

6*23 1517 


LONDON TRADED OPTIONS 

Sfatre price 6 toon* — C*- — PMs — 


(99.734) LME 

ISO 

1575 .I. . . — 

1600 


(Grade A) LME 

2400 

2500 

2000 - 

■ COFfEELCE 


3850 

3700 , , 

■ COCOA LCE 

875 

1000 _____ 
1060 — — 


Oct 

Jan 

Oct 

Jan 

37 • 

8* 

23 

S3 

26 

71 

as 

64 

16 

60 

SO 

77 

Oct 

Jan 

Oct 

Jan 

106 

146 

10 

SO 

40 

0 

43 

93 

10 

52 

112 

152 

Nw 

Jan 

Nov 

Jan 

$19 

430 

78 

237 

285 

4Q3 

96 . 

2B0 

254 

877 

114 

284 

Pm 

Mar 

Dae 

Mar 

48 

0 

40 

68 

38 

83 

54 

68 

22 

61 

88 

96 

Nw 

Dec 

Nw 

Dec 

- 

OB 

68 

- 

25 

S3 

96 

97- 

17 

37 

- 

- 





0 v ».• ... 

1 r. X 


■,'*<? » %r- -.-r .. . 

4 » A m 


4750 -052 4612 47.0 37.415 18/04 
4660 -058 4850 4820 26935 8582 


spatuan 3flMsiaS48 BmtaclDBfS 9nteL5572 
■ WOHQBAD6COPP01 (COMEX) 


4870 -057 5030 4 9.40 <0230 6547 
5065 -057 5125 8030 22248 0441 


51.10 -047 5120 5090 12,113 6570 
9080 -017 51.40 5075 1002 1579 


We M 1M 


170MB 80588 


Ke» 1805 

mt looo 

Apr 2269 +25 2275 2265 1,478 107 

■ey 2(05 

JM 1075 - - 

Tew 1571 H7 

■ iwEQHrgggqi«0iajjdMgfrg 


1PW 16,138 3584 

■ SUhAR t 1VCSCg(116C0abe: eenta/b«) 

Ocf 1675 4021 - 167* 1647 3654015574 

Mr 1259 *012 1681 1643 82.10117.121 

■qr 1653 4013 1658 10® 12 JOU 6784 

-M 1638 4010 1250 T22B 7526 1012 

Oct 1617 400 1618 1Z07 650 70 

Mr 1152 400 1150 1154 062 57 

TOM 06546*30 

■ COTTON NYC£ (SOJOMa^oerta/fcej 


LONDON SPOT MARKETS 

■ CRUDE Ot F=OB few bwrePNov) 4or 


omw S14.78-082U -0220 

Brent EMM (dreed) . S162B-&29 -0205 

Brent BW)d (Nov) S1&86&6BU -0220 

W.TJ. (1pm ere) S17.02-7.D4u -0215 

■ 06. PRODUCTS M/IEpranpt<Mire(yC0F£x'n4 


Premium GaaaMne 
Qas Ol 
Heavy Fuel OB 


11610 4045 11850 11610 


JM 11631 4048 11950 11450 

m 1U90 4049 


PRECIOUS METALS 

0 LONDON BULLION MARKET 
Plicae gagged by N M Roma c hM) 

OoM (Troy «-) S pries 


404 

30 


1573 

20 


04 

20 

Oct 

38.974 

8579 

647 

4 

lire 

<9 

14 

Dm 

0223 1950 

Jm 

fa» 

M re 
TeW 


■ QASOM-FEflftWM) 
M Mjfr 


Oet 14678 -150 14850 14675 1.444 7582 

Ike 18229 -675 19225 19055 36513 4961 

Dec 15(50 -055 15455 15675 1600 45*2 

Jae 15650 -055 16650 15450 1630 787 

FM 15755 -030 15650 15859 1647B SS 

kkr 15750 -CL 73 15750 15625 670 778 

Tew TQM0 2620 

■ NATURAL QAS HUMEX (1050 SfrlpgkJ 


OoM iTroy az.) S pries C aquW. 

Ouse 39Q 30-380. 70 

OpreWlfl 39050-380,70 

MomRB Ibt 390.40 249.457 

ARatnoon Re 38050 246281 

OMy* Htf) 390.90-39120 

Day'i Low 38000-38020 

PnwkMI COM 38650-38050 
tooe Ldn Mean CoM Lereang Rataa (V8 USQ 
1 montfi — 437 0 morUfta 4 


leket Oafa Opra 

price cteoaa Mgd tear W 
L7B -0 030 1206 1568 275* 
IDS 40518 ID* 1581 23.163 
6120 4O0W 618 6110 26(75 
610 40510 2-155 6145 16181 
6075 40013 6090 2570 16475 
6020 40513 6028 6015 6723 


3fa 

1568 

♦11 

150 

1552 

387 

24 

Oct 

72 JB. 

♦052 

7250 

7150 3,001 

3SS 

Ori 

1577 

+12 

1575 

1551 

823 

47 

Ore 

7M7 

*OA6 

-710 

7050 20798 0587 

Ha* 

1575 

♦11 

1576 

101 

77 

0 

Ifcr 

72.72 

+042 

7275 

7150 BL894 

890 

Jm 

19(6 

♦10 

1546 

1540 

50 

10 

ihf 

73JO 

♦032 

7378 

7350 5512 

101 

Apt 

190 

♦20 



374 


Jri 

7*25 

♦037 

7*39 

,TUU W05 

72 

Jri 

1440 

+30 

. 

. 

0 

_ 

Oct 

7053 

♦025 

- 

40 

11 

Triri 





2,347 

*47 

Triri 




. 400* AUB 

BR 

CM* 

U18 

fare 

108 





■ ORANGE JUKE NYCE P 6i000tri;c«ririCqf 





*fa 

8M0 

-1.10 

8*75 

830 57 

22 








Row 

8746 

-1.40 

010 

B6J0 11J0 

822 








JM 

01.10 

-10 

00 

900 0416 

411 








■are 

BUS 

•IZ 

9650 

9*50 3704 

107 








■fa 

98.75 

-1.15 

re 

- 882 

41 








0 

10155 

-050 

10U0 

10150 40 

1 


Jet met 
AWM Apei 
■ onra 


$173-178 -75 

$148-148 -65 

571-74 -05 

■ *155-158 -35 

$168-189 -1.0 


Cold (per troy aVf 
STverfearwy oCf . 
Pttfhum p«r moy azj 
(WkcMum (per tray az3 
Copper (US prad) 

Lead (US prodj 
Tin {Kuril Lrapu} 

Tin friear VortO 


26873 1J8I 


0 UHLEA1WS OASOUNE 

NnBK .000 U8 90 s: c«8 goto 


ttvar Rk 

Spot 


6 menfra 
1 year 
OeM Cotas 
Krugerrand 

Mepkl eel 
New OovtMlon 


-4.«o 12 inonOM 6.00 

-442 


LaMt 

ritoa 



OpM 

tear W Vri 

p/noy ac. 

US Cts tqriv. 

Oet 

43.(0 

-15* 

4553 

4356 28583 21,476 


64658 

■re 

4426 

■159 

*020 

430 10*30 11712 


66250 

Doc 

aw 

-052 

5255 

5150 800 650 


668.70 

Jm 

5170 

-077 

5155 

5150 5523 2558 


87060 

fab 

5150 

■057 

a*o 

510 3540 1584 

S prte* 
34O07 
401.10-40350 
81-94 

2 eqohr. 
25&-3S8 

89-62 

Mar 

Triri 

5253 

-082 

am 

3250 3S3 325 

Bona 4450 


Spot and shipment sales In Uvarpooi 
wnouAed la to tanaa te tha week ended 
September 9 agrinst 240 remoa ki the previ- 
ous rreek. H aaMctad oparaBgna involved fair 
fresh bring* iritti only aoeralo n ri Hreaat 
Cspbyed re cental Amedcrei styles. 


VOLUME DATA 

Open Manat and VokriM AM Mhown for 
contracts Ended on «*©<. NYMEX CBT, 
NYCE. CME. CSCE «d PE Cwd* OB an ona 
day hamara. 


INDICES 

18 PHJTER8 (Bae« IBAUgteTOQf - 

Uep 14 Sap 13 mondi ago year ago 
2112.4 2097.1 20763 ‘ 1034-4 

_ _____ 

Baitt mntirit year*8» 

233.14 220.17 21635 


Sheep Ohre meighCrreC 
p*9» (Rva vnlflhq o 
Lrre. day sugre 
Lon. <tay auger fwte) 

Tata S Lyle export 
Barley (Sig. fb«« 

Mria (US No3 Yefcre) 
Wheat (US Derk North) 
Rutoar(DcQV 
fUiberPMV 
(Ufaar KLfeSMat Aug 

coeoiw 08 (Pims 

Pam CM (MfayJ§ 

Cow* PflS 
’ Sovnbeans 6JS 
Cb ftre Outlook a A* Index ' 
Wooftops (B4s Supre) 


838050 

5465b 

$41750 

$14856 

1340c 

38J25c 

1335m 

2465c 

11613p 

86SBP 

73 5Qp 
$309u40 

534400 
£31 050 
Un* 
$1380 
£1600 
685Dp 
ACLflOp 

32100m 

86».Qt 

tttOft 

$8690 

2T68LQU 

7556C 


ACROSS 

1 Those who can stand on thefcr 
awn two feet (6) 

4 Availing fraud led to shake- 
out (8) 

10 One or more miners with real 
problems (7) . 

11 Looks at guns first, then 
spears (7) 

IX Get more of a bore on papa? 
(4) 

13 Creature which can seem 
loud if disturbed CIO) 

15 Academician in good health 
again, we hear (6) 

16 Run into early proof of 
heights readied by theatre 
audiences (7) 

20 Maker of an experimental 
reactor (7) 

21 Second singer from Liverpool 
to make a bloomer ( 6) 

24 " TnflaminaHa n" ig a Clue I 
still worry about GO) 

26 Another opportunity to play 
the part of tea leading man 
(4) 

28 Speeder contents of motoring 
body's vessel (7) 

29 One found in damaged 
grid (7) 

30 Desist in disarray after engi- 
neers put up a Qght (8) 

31 Dazed but tdl showing spirit 
C5> 

DOWN 

1 A prank but it could bring 

rote® 

2 Show a down-to-earth hair 
style (3) 

3 Tried craning back having 
missed the English soil ($) 


5 Algerian disposed of the king 


6 Its rousing sound should 
brtQgyou to your feet (5^) 

7 Cover up some of life's hor- 
rific h uman tragedies (5) 

8 Tied up and beaten (8) 

9 Runny vims for one day (5) 

14 Commercial Union's taken 

over our mall - It's wonder- 

ful (IQ) 

17 Taking the place of England 
in the re-enactment (9) 

18 Car test I have at the centre 
will get things going (8) 

19 ft’s .clear Joy was playing 
around just fciitimig (8) 

22 The City was left on sang - 
ft's a piece of cake! <6) - 

23 Stupid stop at the 7ard (5) 

25 Makes giant strides ararmg 
up-and-coming wise politi- 
cians (5) 

27 Teacher puts in time' to get 
tilings in motion (4) 

Solution 8,558 


aaaaooBQ Hannon 

□ s a a □ a □ 

□□LSQQHQO QHECinE 

a a q o q g o q 

saHaannam □□□□□ 

□ a □ a □ □ e 

' DG30H QHDQQna 

3 H 0 □ a Q 

□Qtsnaan shbh 
h u □ a an 
□anaa dqhdqhebd 
J i |J a a ej □ □ 
□□□□□□ DQHDBnQB 
H H □ □ □ Q □ 

aaaaHD □uhuiiohm 


e pre Mm* vnlrei oarenrire rend, p peareAg. e mre. 

r iree^ta re Mrirewn MnM«. « Hm. t Oet xtamx 

«9cp . V ion Wo P Byo ri . S OF Marin. 4 aia 
martrec daw 4 Ware* Sire wwr pdreri. * Cbrao* on 
Mrit • Wore fa- pWm Wy. 















financial Tiivres Thursday September i 5 1994 



LONDON STOCK EXCHANGE 


MARKET REPORT 


Shares fall heavily after August inflation data 


By Terry Byland, 

UK Stock Market Editor 

TteUK stock market suffered its 
largest one-day drop for nearly four 
months yesterday after an unex- 
pected jump in the August retail 
price index raised concern that this 
week s rise in base rates might soon 
be followed by another. Led by sell- 
foe futures markets, the 
FT-SE 100-share Index fell 41.6 
points, breaking through an impor- 
tant support level, to finish at 
3,0753. 

The 03 per cent rise In headline 
inflation in August was worse 
■atpected and served to explain the 
factors behind Monday's 'A percent- 
age point increase in Bank of 
England lending rate - one agency 
reporting that Treasury ministers 
had seen the preliminary hwaHi(ii» 


figures last week. Average earnings 
statistics remained steady but a dip 
in the August unemployment rate 
was seen as indicating strengthen- 
ing economic recovery. 

Equities opened firmly, benefiting 
from overnight strength on Wall 
Street, but were quickly over- 
whelmed by the RPI figures and the 
consequent setback in UK govern- 
ment bonds. Attempts to rally 
proved unsuccessful and the Footsie 
was already down by 41 points at 
midsession. 

The mood was not helped In the 
afternoon by negative comments on 
German interest rate prospects 
from the deputy president of the 
Bundesbank, ahead of today's meet- 
ing of the central bank's policy com- 
mittee; a survey of analysts voted 
heavily against the likelih ood of a 
rate cut today by the Bundesbank. 


The Footsie teetered on the 3.080 
mark for some time, as UK equity 
chartists warned that a move below 
this level would leave the index vul- 
nerable down to 3,050 and then, per- 
haps, all the way to £970. But the 
late afternoon saw further weak- 
ness, with the September futures 
contract on the Footsie traded down 
to 3,067. 

London paid no heed to the New 
York market, where the Dow Indus- 
trial Average was two points off in 
UK hours following the announce- 
ment of the latest US wholesale 
price statistics. 

Although trading volume was not 
greatly different from recent daily 
levels, there was no doubting the 
waves of red on the trading screens 
as marketmakers lowered their 
prices in the face of determined sell- 
ing. At least one large selling pro- 


gramme was identified, said to be 
from a London trading house noted 
for its astute dealing instincts. 

The setback spared no sectors of 
the market. The FT-SE Mid 250 
index, taking in a range of non- 
Footsie stocks, dropped by 50.7 
points to 3,628.4. There were sub- 
stantial losses amnng the consumer 
and leisure stocks. Building and 
construction shares suffered more 
modest losses, but only because 
they had already reacted sharply 
when base rates were raised at the 
beginning of the week. 

Bank shares reacted badly to wor- 
ries that their customers might 
slide back into the bad debtor cate- 
gory if domestic interest rates con- 
tinue to rise. Even the utility sec- 
tors, which have been seen as 
defensive areas in a nervous mar- 
ket, proved unable to resist the 


FT-SE-A All-Share Index 


1.675 

1,650 


general trend. 

The speed of the market's reac- 
tion restrained the would-be sellers, 
who saw prices tumbling before 
they could reach their telephones. 
The day's Seaq total declined to 
539.6m shares from the 587.2m 
recorded on Tuesday, when retail 
business was worth El.lBbn. 

The stock market went home in a 
thoroughly chastened mood, with 
traders awaiting the further eco- 
nomic data due this week from both 
sides of the Atlantic. Today brings 
the UK retail sales figures for last 
month, which analysts believe will 
show a slowdown from the 0-4 per 
cent growth of the preceding 
month. 

The latest UK Public Sector Bor- 
rowing estimates are due tomorrow, 
when markets also Dace the August 
production figures from the US. 



SouckFTQqpMu' 


1994 


■ Key Indicators 

Indices and ratios 

FT-SE 100 3079.8 

FT-SE Mtd 250 3626.4 

FT-SE-A 350 15553 

FT-SE-A All-Share 154637 
FT-SE-A AD-Shara yield 3.88 

Best performing sectors 

1 Health Care ... 

2 Transport 

3 Chemicals ....... 

4 Household Goods 

5 FT-SE SmaUCap ax IT 


Equity Shares Traded 

Turnover by wksro fmUoty. Excfcjdng: 
Wnwiasriust business and onruat turnover 
1.000 — 



-41.6 

-50.7 

-21.1 

-20JM 

(3.82) 

FT Ordinary fnd*x 2397.4 

FT-SE-A Non Fins p/e 19.07 

FT-SE 100 Flit Sap 30644) 

10 yr GBt yield 6.99 

Loop gilt/equity ytd ratio: 9-M 

-29.1 

(19.31) 

-54.0 

(8.81) 

(2.30) 

.... -0.3 

Worst performing sectors 

1 Water 


-0.4 



.... -0.4 

3 Insuranca 

-2.1 

.... -0.5 

4 Spirits, Wines & Cider 

-2.0 

-0.6 

5 Tobacco 

-1.8 



unpurts uj 


BP firm 
against 
the trend 

A reiteration of NatWest 
Securities* positive stance, plus 
a profits upgrade and expecta- 
tions of good news from 
today's presentation to ana- 
lysts, helped British Petroleum 
shares extend their recent oat- 
performance against the rest of 
the stock market. 

The share price, which set an 
all-time high of 430p last week, 
ended the session a penny 


firmer at 4i7Vip after heavy 
turnover oT 1 3m shares. 

NatWest, in a buy note pub- 
lished yesterday, said BP 
shares have outperformed the 
UK market by 50 per cent 
July 1992 and argued that 
“steps taken to improve the 
competitiveness of its 
upstream business could boost 
earnings by some £440m, or 8p 
a share, at any given level of 
oD prices’’. 

NatWest's oil foam , adopting 
a conservative line on a new 
"federal" structure in BP’s 
upstream businesses, which it 
says will drive the new com- 
petitiveness, increased its 1996 
earnings per share forecast by 
10 per cent to 40.4p and for 1997 


by the same figure to 42. 7p. 

The presentation to anlysts, 
to be given by BP'S exploration 
director Mr John Browne, is 
expected to include more good 
news from BP's operations 
across the globe, but especially 
from Colombia, Vietnam and 
west of the SheQand Islands. 

Cartton optimism 

Media group Carlton Com- 
munications stood out as the 
principal bright spot in the 
London market as the shares 
responded to reports of grow- 
ing advertising revenue, as 
well as company presentations 
to analysts. 

Latest industry research 


shows that forward booking for 
advertising slots in October 
has increased by 6 per cent 
The pressure is thought to 
have come from the emergence 
of some big advertisers such as 
Eurotunnel - ahead of the 

opening to the public of the 
Channel tunnel - and the 
National Lottery. There is also 
the traditional pre-Christmas 
pick-up. 

Analysts pointed out that as 
there is no need for production 
costs to rise the increased 
demand would translate 
directly into bottom line prof- 
its. Carlton is the UK’s leading 
independent television group 
and the stock received addi- 
tional support from company 


TRADING VOLUME 


EQUITY FUTURES AND OPTIONS TRADING 


WORD 



S I 

1 1 

■ I 
1 1 
1 1 
If 



Stock index futures took a 
beating yesterday, hit first by 
the release of disappointing 
UK Inflation data and tumbling 
further in mid-afternoon when 


the cash market came under 
heavy selling pressure, writes 
Jeffrey Brawn. 

The September contract on 
the FT-SE 100 got under way 


■ FT-SE ICO INDEX FUTURES (UFFEJ £25 per ftjfl Index point 


(APT) 



Open 

Sett price 

Change 

Hgb 

Low 

EsL wol 

Open WL 

Sap 

3120,0 

3064.0 

-64 D 

3120.0 

30600 

23066 

21262 

Doc 

3130.0 

3073.5 

-SSJ5 

31300 

3069.0 

8955 

39336 

Mar 

31100 

30905 

-57.5 

31100 

31100 

40 

575 


■ FT-SE Mm 250 INDEX FUTURES ffJFFS CIO per M Index point 

Sep 3652.0 3620.0 -570 38524 3620.0 211 3000 

Dec 38750 36*3.0 -57.0 -36750 3643.0 200 2080 

■ FT-SE MID 250 INDEX FUTURES (OMUQ CIO par ftil Index point 

Sep - 3821 0 - - - I 636 

« opun intewt Iguwt m ror prewari day- f Enot vduns dwelt 

■ FT-SE 100 MtDEX OPTION (UFTQ 1*3079) CIO par fag Inden point 

2B00 2030 3000 3080 3100 3130 3200 3250 

CPCPCPCPCPCPCPCP 

Sap 179 1 120 IV » 4 29 13 6*’ 41 ! 89 1 139 1 189 

M 170 171; T3t>’ 27‘j 102*2 40fe 7Pz 62 « B7»j 36 119*^ 15*a 157 9 SOI 

Hoi 200 3? IQ>i44>2l28>;57^ 97 7Pi 7H* ndj Wfc 132', Sfc 168 22 207 

Or MS 48 ISP; 59 148 78*7111% 97*2 W*a 121*2 ®»j 149*2 53 181b 38 217b 
Just 297b 90 STblKb 1*2*3 171 138 227 

Caas nun Pots q|T> * 

■ EURO STYUE FT-SE WO BWEX OFTIOW (UFFE) CIO per hJ Index part 

2S7S 2825 2075 3029 3075 3125 3175 3225 

Sip IWb I !• 1 01 2 45b 6 b 13 24 1b 62*2 1 mb 1 161b 

Oct 300b 14b 189 23 121 34*; 87b 51 »b 72»j 36 100*222*2 135 12*1174*2 
Hot IWb 37 113 67*2 SI 114b 27*2 180 

Or 1W 50 I3t 83*2 » 130*2 42b IWb 

•tot 242b 74 IBOblOSb 128 153b Wb 210 

CMs r.rrs Pus t IW 6 * Unfcdfhg Max taiuo. Prarotasa stww are tend on laObnnut pitas 
1 loaf) «ucd renv monte 

■ aWO STYLE FT-S 6 MO 250 INDEX OPTION (QMUQ RIO per fat lode* point 


3S00 3660 3800 3680 3700 3750 

Sop 37*2 8 18b 31 1b 71b 

Mb 0 Pub D SoMnomI ptas n> <wlumu ot Warn it 430jm. 


FT - SE Actuaries Share Indices 


3800 


3850 


at 3,120 but deteriorated 
almost from the opening, tt 
closed at 3,064, with the 
discount to the cash market 
standing at 16 and a fair value 
premium of slightly under one 
point 

The retreat was mostly led 
by independent traders - 
locals - who continued to 
dominate business, but at least 
one leading institutional 
marketmaksf was said to be 
active on a day when volume 
was broacfly in line with the 
previous day. 

Trading volume totalled 
21,874 lots, with up to 8,000 
of this reflecting roll-over into 
the December contract where 
turnover was just short of 

1 0.000. The September 
contract expires tomorrow 
morning. 

Activity in traded options 
tailed off, faHing slightly below 

40.000, against 56.282 on 
Tuesday. FT-SE option volume 
just topped 20.000, making 
24.948 with the inclusion of 
the Euro FT-SE option trade. 

Barclays (2,082 lots) and 
Glaxo [1 ,704) were the most 
actively traded Individual stock 
options, with British Petroleum 
and HSBC Holdings not far 
behind. 


Day's 

Sap 14 chgo% Sep 13 Sep 12 Sap 9 


Year 

ego 


FT-SE 1 00 3979-8 

FT-SC MW =» 3628.4 

FT-SE Md 250 ex taw Truete 3B292 

FT-SE-A 380 *556.5 

FT-SE SmMCnp 1879.73 

FT-SE SmaBCop e* bw Trust* 184597 

FT-SE-A ALL-SHARE 1546.37 


-1.3 3121.4 3128.8 3139.3 298B.4 

-1.4 3879.1 37133 3736.0 3424.1 

-14 3679.1 3715.9 3739J 343&9 

-1.3 1576.6 15829 1589.3 1500.2 

-Oil 1891.48 1889.35 16008 1771.76 
-0.6 1959.54 1867.23 1870.99 177X31 
-1.3 158668 1572.85 1578.W 1488.84 


■ FT-SE Actuaries All-Share 


Day’s 

Sep 14 choe* Sep 1 3 Sep 12 Sep 9 


Year 

ago 


10 MINERAL EXTRACTJONflB} 

12 Extrac* -Ti lnduPims(41 

15 Oa. InMarawdp* 

16 OH Enplor.TOon 6 Proud D .. 
TO OEM MANUFACTURE RS(2fl3) 

21 Budding 8 CondnjcSon(321 

22 BukDng Mate 6 MerctaPD 

23 Ctwnc-iW221 

24 OftnenAcd IndUSttWItil 
T6 UtodnWiC .1 Bod Equ*>(34\ 

:*B Eng*ipcmifll701 

27 ErtgtnccTmg, VoWcles(i2J 
29 PrtnGng, Papor 6 Rekg(261 

n lem.l** & ApparrtP Q) 

an 
ji 

X 1 

ret 

34 

x 
.17 
JW 

40 

41 

4J 
44 
4 1 - 

48 

49 


2732 66 -0.9 2756J8 2756.91 2779.16 2242.10 

39)7.61 -1.4 3972.32 4019.79 4048.63 312700 

2684 52 -0.7 3703.44 268085 2724 J7 21 7B.B0 
1982 12 -14 2010.78 1888.06 1967.B3 186300 


1932 57 -1.3 1958.65 1969.74 1977.46 1889.50 

1112.81 -1.6 1131X34 1T48JJ9 1175.09 1143,00 

1677.32 -1.7 190934 1919 57 1B38J3 1813.40 

243a 33 -0.4 2448.31 7456.60 2483.19 2209.ro 
1650 56 . -1.8 1880.75 1B93.70 1894.5S 1928.20 
1927 87 -151962.031960a0 1974.14 2071.ro 

1837 52 -13 1860.90 1874.44 1872.02 1628.10 

228867 -1 a 2319.41 231B.B3 233&81 1907.60 
2873 14 -1.6 291862 2930.37 2931.02 2441.80 

1663 10 -0.9 1688.72 1697.50 1702.11 1902.90 


CONSUMER OOOOS(97) 

BlTOtvmwrtD 

Sputa. VUnoa S CrderatlO) 
Food Mamrtactunj«(23) 
HousehoM GoadsOS) 
Hoann Caropu 
PharmecMittciitstl 21 
ToencroO) 


2741.82 -1.3 2 77a 43 2792.01 280216 2753.50 

2250.10 -0.9 2271.41 2297 .67 230628 2081.00 

2812.15 -2.0 2888.44 2681.94 2869.61 2796.50 

233235 -1.5 2368.77 2371.06 2384J7 2307.70 

T4592B -OS 2471 77 248275 247751 2553.00 
1667.79 -0.3 1672.71 186040 1695.76 1755J50 

3028.65 -l.Q 3058.63 3063.48 307&06 3021.50 
MH1.J7 -1 2 354439 3607.31 3640^6 3914.60 


SHWICESpifl) 

Ounmufonrii' 
iastwor & Hnh.4U34l 

Ootaaora. KvwJiF} 

Gencral45l 
Sujtvxl S«!iwcr3|401 
ftanpeiltfl 

C«m Snr riue 5 Bnrutw ^Bl . 


1939.60 
2555.47 
2053.57 
2856.96 
1814 98 
1639.1 1 
155041 
2312 G6 
12R6E0 


-1.1 1960 93 
-2.4 2617.77 
-1.6 2088.31 
-iS 2802.07 
-0 71827.53 
-1.1 1657S4 
-0.0 1572 87 
-0.4 2321.55 
-1.1 1302 62 


1965.35 197021 1894.50 
T84&48 264091 2722.30 
2107.48 211011 194420 
2901.76 291 1^3 2516.30 
1824.06 1819.43 182200 
1665.93 166024 1650.80 
1577.14 1577.84 1B24J0 
229450 2321.37 2230.80 
1304.63 1312.44 1323.90 


m UTtUTIESJ36) 
cr ElectncJtvtlT) 
ru Oan CWnOtjliDiUTI 
Tcdtwaiai wnjcoi J ) 
HB WeMKI JI 

C3 NON-F IMANC^SgSl 


-1 5 3414.93 2422-29 244042 2283.70 
-1.5 2541.96 2557JJ3 257032 198020 
-1J» 1951.80 1945.75 1954.10 2132.70 
-1.4 2014.68 201323 203&09 2032 JO 
-2.5 1854.60 188059 1901.14 189030 
■xn rM —1.3 1692.47 168056 170083 1604.41 


2377 52 
25(M.(» 
19C7.96 
1986.11 
1809.06 


FMANC1ALS(1D4) 

BartaiiQt 

houMv^in 
Lite AtynanttlGI 
MecthwU Onr*'45( 
mcYKWH-’** 

I ’ntj* xtxJJII ... . 

MMBTMCWT reUST ggWj 

rr SE A M.L-SHAREWS9} 


2174.98 

281144 

173182 

2400.47 

3038.44 

1957.45 
1471.97 


-1.5 2208.15 
-1.7 2861 
-2.1 1257.85 
-0.6 241575 
-1.3 3079.16 
-0.8 1973.80 
-1.1 148&15 


2221 75 221501 
267556 287562 
1K&21 1247.79 
2443.892424.31 
3128.02 316051 

1993.84 20DL04 
1485001404^3 


21 57 SO 
2804 JO 

1439.10 
2595.50 

3047.10 
1752.70 

1597.10 


Dhr. 

Earn. 

fVE 

Xd mO 

Total 

yWdW 

yWd% 

ratio 

ym 

Return 

4.11 

097 

1095 91.70 

116108 

3.41 

5.79 

2071 

92-58 

134806 

3-58 

027 

19.26 

95.75 

134523 

3.94 

6.70 

17.70 

44.79 

1199.89 

3JM 

4.18 

30.71 

39.60 

1454.67 

022 

4.61 

2032 

40.62 

1434.72 

3.B8 

051 

10 £7 

4067 

1213.36 

Dfv. 

Earn 

P/E 

Xd ad}. 

Total 

yMd% 

yMd% 

ratio 

yld 

Rahim 

3.30 

5.06 

24.81 

54.77 

106804 


5.13 

24.39 

5*24 

1088.14 

3.43 

5.80 

22-23 5099 

108024 

2.09 

t- 

L 

2008 

113603 

095 

432 

24.63 

5407 

981.73 

3.50 

4.79 

2098 

2086 

86581 

3.93 

4.62 

26J2 

4708 

87903 

3.81 

4.19 

3008 

74.17 

107057 

4.95 

5.03 

2064 

67.10 

94068 

091 

054 

1023 

5508 

941.81 

3.11 

4. 85 

24.44 

41.95 

1048.12 

4^5 

£52 

5053 

7007 

110551 

2.98 

5.16 

22.68 

6301 

1127.71 

090 

051 

1082 

4049 

94705 

433 

7J8 

15.73 

8604 

940.46 

4J0 

7J6B 

18.00 

81.03 

100705 

3.94 

094 

1095 

8902 

942.70 

4.16 

7.75 

15.02 

71.13 

97514 

3.66 

7.37 

1624 

5402 

877.48 

3.00 

034 

43.41 

3500 

964.11 

4.35 

7.09 

16.33 

7B.88 

95097 

023 

9J37 

10^8 217.07 

794.15 

3.17 

019 

19.48 

42.78 

94801 

356 

097 

1094 

64.58 

88072 

3L39 

4.72 

24.78 

4803 

101006 

£41 

5l27 

22.07 

64.57 

99204 

054 

8.69 

14J5 

45.10 

1062-54 

3.19 

6.56 

1094 

35.85 

87304 

£64 

6-06 

1049 

26.78 

94400 

3.63 

02* 

2£21 

4301 

901.90 

093 

£16 

80001 

21.48 

110303 

4.43 

7.91 

15.40 

7042 

91502 

068 

9JJ4 

12.15 

8046 

1041.35 

021 

t 

t 

66.79 

881.09 

4.16 

7.92 

1036 

50.22 

84598 

5.37 

13.12 

031 

ram 

90404 

035 

030 

19JJ7 

45.12 

117733 

4.40 

8.68 

13-33 80.73 

WP(P 


053 

1135 11434 

84545 

5.10 

9-65 

11J5 

48.55 

84166 

529 

7S7 

1022 

8534 

91£14 

03B 

1087 

10.72 

KfDU 

915.76 

064 

8.05 

1401 

52.77 

104301 

4.10 

025 

29.77 3&G0 

84086 


TBT9 95 
1548.37 


-i 4 ggga 9S 38^.05 288a91 2S34S0 
-IS Tsawa 1572.65 1578.96 1488.64 


2.15 1SS 54.80 5005 950S3 
3S8 6J51 18.27 43.67 121336 



■ Hourly moiroment* 

Oiien 9.00 

1500 

11 JD 0 

12-00 

1500 

1500 

1 &TO 

16.10 

HJgh/day Low/dny 


H-SE »«* 

FT- SI: MU :50 
FT-ET-A OuJ 

airor 

JfcSO." 

1579.6 

3113.1 
3072 0 
157? fl 

30944 

3660.5 

1564 3 

3096.1 

3653.7 

1564.3 

30890 

3649.4 

1S81J 

30820 

3642.0 

1557.8 

30800 

3636.0 

15556 

30855 

3634.3 

1557.5 

3079.1 
3627.8 

1555.1 

3128.7 

3680.7 

1579.8 

30750 

36277 

1553.7 


ia . nl JT ;a , w teA AW- **«*> — »**- ^ ’ ^ **“*"*■ 

■ FT-SE Actuaries 350 Industry baskets 

■ FT-SE ACIU^ , tw , 1J0 


14X0 1&O0 16.10 Ckne Prevtom Change 


SUy X CW'ieni 
pronutouiicb 
VMM 
Sonhit 


SC7M 1 
:X».'A7 
US*. 


1074 6 1073 3 1071.8 106GS 
Sri ion I 3011 5 3007 3 3001.7 


•Wl'l JWI' ■» v ------ 

joi ' «M95 IR3S.0 1829.5 *816.3 1B0&3 

55* 5SS =«7 8 2652.0 2844.4 2837.7 


10623 10613 1058.1 

30033 3014.9 3000.3 
ISMS 1B11.4 1806.0 

26402 2645.8 264BS 


1057S 107BS -20 J? 

30005 3030.7 -30^ 

18001 1852.1 -460 

264a 1 28571 -49.1 




(in i "i* 

i f><«> i”-* rni-.iti** 1 
i»vjxe m •-> i"* !r 
Tt* I T " 



■ Major Stocks Yesterday 



Vol 

CIHng 

Daqr-a 


OOQs 

price 


ASOA Groupt 

BtBDO 

68 


Abbey Narinort 

zsoa 

403 

42 

AtooiftriKT 

148 

48 


ABed-Lyonef 

1 J 00 

S76 

-17 

AMtan Wear 

614 

531 

-13 

Argn 

334 

344 


ArnyVOnuPt 

zxxL* t 

1.GOO 

1,000 

48 

284 

272 

566 

J* 

-5 

-IT 

Aaaoe. B* Peru 

1 J 00 

272 

48 

BAAt , 

1^00 

405 

4 a 

BATtetet 

£300 

415 

-8 

BET 

614 

108 

-5 

BCC 

144 

394 

-8 

BOCt 

660 

720 

-8 

BPt 

13.000 

4171; 

4-1 

BPBInda. 

1XW0 

282 

-5 

Bit 

9100 

3831; 

-S 1 * 

BriPIPNdl 

7.000 

26 Oh 

-5*; 

BTRt 

9.003 

321 

- 81 ; 

Bw* of Scotmctf 

1 JOO 

203 

-4 

Bandayrif 

5.700 

ses 

-10 

Basst 

3,000 

552 

-5 

BtueCrdet 

66 * 

203 

-4 

BeMar 

454 

438 

-9 

Bocorf 

130C 

531 

-7 

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presentations ahead of the 
group's September year-end. 
The shares jumped 19 to 875p 
with turnover higher than 
average at L5hl 

inchcape weak 

Inchcape, the vehicle distrib- 
utor. continued to slide, the 
shares losing 17 to close at 
415p. The long-term strength of 
the yen, which has driven up 
Japanese import prices, has hit 
Inchcape sales. Analysts fore- 
cast that the results due on 
September 26 will be below last 
year. One leading analyst fore- 
cast pre-tax profits for the first 
half of £115m, down from last 
year’s £130m, and there is City 
sentiment that the gro u p may 
have to regain a good deal of 
ground in the second half. 

Prudential shares performed 
well, closing a penny up on 
balance at 314p after good turn- 
over of 5.6m. The interim fig- 
ures came in above most esti- 
mates and there was 
satisfaction with the 9 per cent 
increase In the dividend. Legal 
& General lost 8 to 453p ahead 
of thu morning's interims. 

P&O retreated 14 to 660p on 
profit-taking in thin volume. 

Better than expected half- 
year profits from Associated 
British Ports pushed the 
shares up 9 to 272p. 

Airports group BAA put on 2 
at 495p as traders digested 
August's strong passenger 
flows which, showing a rise of 
6.4 per cent, have further 
underlined the trend to weak- 
ening market share at British 
Airways, where passenger vol- 
ume could only gain 5.2 per 


NEW HIGHS AND 
LOWS FOR 1994 

leWHHH&pU. 

(KHUN NO 6 CNSTRN fTJ SMH (Win), BLDQ 
MAILS a MCHTS H Qrttarv Kngapan. 
MSfMBUTORS (1) WytA EXTRACTIVE MDS 
(7) Easton TnmnS CanM, EOMM QakL. 
Free StBta DavfpE. Hmn cny. Kli git re a m Has.. 
Nw mo. wuu^uysr Cerate, (tea. 
H0US840LO GOODS f6 Bfedon & Bolmaa. 
MVGSTMDiT -ntUSTB fQ Brudtol Wttfc. JF 
AM Steel. PNARMACaiTICALS {2} Bit. 
BUach. . Do WM&. RETAILERS. CHS1BML (Z) 
Brawn K OBrar. SUPPORT SSWS (1) RMrce 
Security. TEXTILES A APPARQ- ID Cent (SHJ. 
THAMSPORT (1) AM9HCAHS (I) Nova Ooip ol 
A 8 MRA 

NEW LOWS (140). 

tMLTS (30) OTHER FIXED IMTEREST (3) 
BREWEMES p) AscoL FlABf STA BUHlWta ■ 
CUSTOM ED Baszer Hamee. BryanL Cosntn. 
Counryoide Props^ Hlogn A Hi. LatnoUSApc 
PI.. Huy Dougin. ww«wy. Maon Bowden. 
BUM MAILS A MCHTS M Qrahwn. HaML 
I iipnmnrt iMnroi llniirmn nitmna nun 
DMIHBHirORS (ID AH Ln. Appleyad. 
BktcMey Motor. Cowrie, Becfcompg^ Euodote, 
In tewpe. LnSenrtca. imante Mekva 
W elpa c , BW HBMK MPLS M ENaa MCIU NO 
(3) FM & SmAh Morgen Cmcfcte 7Mpo PI- 
Whntmon. BKL VBBCLfB p) Mte-Statee. 
EXTRACTIVE M)6 {4 Bradtan. Mta GoM, 
PecSo Air Exptrx, 3ipa Fteeowoea, FOOO 
MAHUF (D HOUBBiOLD GOODS » NVP tn. 
Jeyee. wyeMd, MSURANCS (D Manh A 
McLennan. INVEBTMBir TRUSTS (ID 
MVESTMEKT COMPANIES 00 LBSURE A 
Hcrras p) Cmuda, Onrii T£p (Nm) Pt, 
Tring lm*L, LIRE ASSURANCE CD Dm B Bpc 
PI. ISU (3( Btonhetm. Chtme 
Communtcadans. SMcTV. mCMAHT BANKS 
(I) WMnBL OL EXPLORATION A PROD (D 
Enemy &e*y. Olira FINANCIAL (D King A 
Shaaon. OTHER SERVE A BU8NS (1) 

Adwaoda. PRTNQ. PAPER 4 PACKS (2J AH. 
WannonFa. PROPGRIY HD RETMLERS, 
OBIERAL R M pray. CNpeMgM. CouWy 
Cwh Greet OnhienM. Keenan, WT. 

Partridge Pine Arte. Storehouse. SUPPORT 
SBVIS n TEXTILES A APPARH.CQ LamDert 
HowartlL, PatWand. TRANSPORT H 
AMERICANS CD- 

cent for last month. BA dipped 
4 to 289p. 

Eurotunnel slipped a penny 
to 270p, perilously near to the 
265p price of May's rights 
issue. 

Shell Transport moved in 
the opposite direction to BP, 


the shares slipping 11 to 722p, 
with dealers noting renewed 
switching out of the stock Into 
BP. in spite of the prospect of a 
good interim dividend increase 
which is scheduled for this 
afternoon. 

Most analysts are looking for 
Shell to lift the interim pay- 
ment by around 10 per cent 

Cal or Group came in for 
good support after announcing 
better than expected interim 
figures. Dealers are looking for 
a healthy increase in the 
group's final dividend and the 
shares moved up 7 to 294p. 

"A yield premium of 45 per 
cent is just about right for 
Calor, which is not a growth 
stock," said one analyst There 
were no shocks with Lasmo's 
interims, and the shares 
dipped 4 to 155p. 

British Gas failed to hold on 
to an early modest rise, easing 
to close a net 4 off at 290p 
ahead of tomorrow's analysts 
trip to Hinckley. 

Biotech group Celltech held 
steady at 206p as a huge over- 
hang of stock was removed 
after the administrators of 
residual shareholder Brit- 
ish & Commonwealth offloaded 
most of its stake into the mar- 
ket. Celltech announced that 
Cazenove had placed 12.8m 
shares in the market at 200p 
each. Urn of which came from 
the B&C administrators and 
took their stake down to 4JS 
per cent from 19.9 per cent. 

Blenheim, Europe’s largest 
conference organiser, dropped 
28 to 215p after warning that 
tough trading in its key French 
market meant full-year profits 
would come in below budget 


Media and communications 
group Aegis declined 2 to 30p 
on disappointing interims. 

Retailer Marks and Spencer 
recovered from a day's low of 
402p to end a net i‘/i higher at 
406p after bargain hunters 
were encouraged by elements 
of the latest UK inflation data. 

Some analysts pointed out 
that a 2.2 per cent gain in 
clothing and footwear would 
benefit the high street **haiw 
They said M&S had avoided 
much of the increase in raw 
materials prices by buying for- 
ward. 

Half-time figures from sau- 
sage skin manufacturer Devro 
International failed to please 
and the shares dropped 19 to 
230p. 

British Aerospace stood out 
among a number of sharp engi- 
neering share price move- 
ments, sliding 16 to 494p tn ner- 
vous trading ahead of next 
week's half-year results. 

British Steel edged ahead a 
half-penny to I49p against the 
market trend. Trading volume 
was a very heavy 10.8m, with 
the shares acquiring some- 
thing of a refuge stock tag. 

There wee steep decline s in 
some of the smaller market 
capitalisations, notably Ran- 
somes, best known for its lawn 
mowers and down 7 at 57p, and 
controls and compressed air 
specialist Siebe. 15 weaker at 
536p for a drop this week of 29. 

MARKET REPORTERS: 

Peter John, Jeffrey Brown, 
Steve Thompson, 

Ramraj Gogna. 

■ Other statistics! Page 19 


LONDON EQUITIES 


LIFFE EQUITY OPTIONS 


— Cans Put# — 


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550 

a 

58 8854 

ID 

13 

22 

(*584 | 

600 

6 

27 

41 

21 : 

345)' 

1654 

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280 

1614 

25 

33 

3*4 

11D 

17 

(*292 ) 

300 

454 

15 

23 

15 : 

72J41 

77*4 

Brttdi Qa 

280 

1354 

19)4 

25 

25* ■ 

I1D 

15 

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300 

3 

10 16)4 

13 

23 : 

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(tens 

160 

15 

23 

28 

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7 

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200 

3 

1215)4 

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17 

22 

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160 

19*4 : 

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27 

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180 

4 

95) 1554 

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13 

15 

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130 

6V) 

12* 1554 

4 

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52 

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140 

2 

75* 71)4 

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460 

1814 

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26 

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500 

3 

1554 

27 : 

315)' 

111? 

47 

SCot Powv 

360 

15 : 

SID 3754 

5 

18 20D 

(TBS ) 

390 

3)4 

175* 

23 

25 3254 365) 

Seas 

110 

654 

95) 

13 

2 

4D 

6 

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120 

154 

5 

75* 

75) 

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12 

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220 

7 

1454 205) 

5 ' 

12*4 ' 

16V? 

(■222 ) 

340 

2 

854 

12 

20 

20 

29 

Tarmac 

140 

554 

12 IBS) 

4 

10 1 

145* 

n*i 5 

160 

ID 

55? 

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21 285) 

a 


Don EM 1000 2614 61 76 12»33h 50 
rtOIIJ 1050 6 36 52 4P4 61 76S4 

T5B 200 20D 2BH 31 1 5h 10W 

(*217 ) 220 5tt 14H 18Vi 7 13fc 19^ 

TonMns 220 life 19h 34 3 8» 13 

(*227 ) 240 m vm 14h 15* 19V, W 

WeJfcme 650 41 68 86 5 24H 35 

(*682 ) TOO 11 46 S9 27H 48 58H 

Oman Oct Jm Apr Oct Jan Apr 

Cb» 550 4«v* gw 63» It 27 40 

PSfll) 600 12 3m W 4114 54V, 67 14 

K58C 75o shs 700 49 74 9414 Z2 4U46ZK 
(*721 | 750 2S 51 TO 49 67* 90 

Harare 475 25 - - 11» - - 

|*4tt ) 487 18 - - 17 - - 

(Won He Fall Way to Feb May 

Dofe-noyce 180 13V4 18% 23 SH 12» 1«H 

net) 2 oo aunt 14 2 U* 2 S 2 a 

■ Underlying atony prica PicrafenN TOomi m 
used on cfcXttQ oner pncNL 
September 14. Total ccntractK 40.048 Cate 
21.584 puts 18.484 


I FT GOLD MINES INDEX 


Sap .%cfeg Sap Sep 
13 an day 12 9 

Year MSB * 52 weak 

W y«d* l*" 


Geld Ufats Index (38) 
■ Ragman laScet 

AMa (IQ 
Aa*feM(8) 

Hurts Amenta (12) 


2187.58 

-(LB 

220031 213889 >82£G8 

197 

236740 152298 

3362.08 

*0.5 

335992 340075 190323 

498 

348796190023 

273149 

-J.4 

283093 2867.49 1843-70 

1.88 

301189 189118 

1752.06 

-OJ 

1765J6 1745.95 138390 

0.74 

203065 136390 


Gopyncre. The F r a n ca ! Times Umrieo iw. 

r«ni m tnckra mow runber ol oomparMo. Baxai US DaOars. Braa Vahrex 1000.00 31712/92. 
Predecuwr Octd Mnee tele*: Sep 1* 2718 : *sfa ctertg* *Q ? Pont*; Vea gp 1554) T PartflL 
Inte l? pm» we unaMtiubie kr ns adtttn. 


RISES AND FALLS YESTERDAY 




Rises 

Fads 

Sana 




64 





12 




82 

268 

68 

181 

33 

162 

278 

50 








99 

281 

a 













177 

17 

Others 


30 

Totals 


228 

1.190 

1174 


Dua based on enar mmnnntei Med on ft, London Sim Swlca. 


TRADITIONAL OPTIONS 

First DonSngs September 12 Exphy Decembers 

Lest DeaBngs S eptember 23 SetUament December 22 

Cate Aram tea. BP, BluebM Toys, Brit Biotech Wte, DMaten, Rrat Nat Fin, 
Magnum Power. Navan Raa. Tatora, WHta Grp. World Fluids. Puts: Aram ML BP. 
World Ffcdds. Puts & Cate: Navan Rea. 

LONDON RECENT ISSUES: EQUITIES 

tesuo Aim ial Ctosa 


ixtee 

P 

paid 

up 

cap 

(Emj 

1004 

tfflh Low Stock 

price 

P 


Net Dtw. Ora 
an. cxw. yld 

PAE 

net 

- 

FJ*. 

194 

89 

78 Bate) Q Shn wits 

7flla 

-1 

- 

_ 

- 

100 

FJ». 

182 

102 

95 Beacon Inv Tat 

96 

+1 

- - 

- 

- 

- 

F.P. 

1.48 

48 

39 Do. Warrants 

39 


- - 

- 

- 

- 

FJ>. 

1.30 

14 

1 Conrt Foods Wits 

lit 


- M 

- 

- 

- 

F P. 

316 

94 

89 INVESCO Jpn Disc 

90 


- - 

_ 

- 

- 

F.P. 

322 

50 

42 Do. wtnancs 

46 

-1 

a. 

- 

- 

- 

F.P. 

_ 

77 

60 JF FI Japan Wta 

60 

>1 

ra 

. 

- 

- 

FJ>. 

25.4 

67 

35 fMaprium Power 

81 

-4 

- - 

- 

- 

23 

FP. 

108 

31 

29 Orbis 

20 


- 

- 

- 

- 

FP. 

090 

17 

5*3 Panther Wrta. 

17 


- - 

- 

- 

- 

F.P. 

082 

40 

26 Petrocatik; 

26 


- - 

- 

- 

- 

F.P. 

3.B5 

44 

33 Sutar WHs 99/04 

33 


- 

- 

- 

100 

FP. 

341 

105 

97 TR Euro Gth Ptg 

105 


- - 

- 

- 

- 

FP. 


35 

20 Tops Ests Wrts 

29 


“ 

- 

“ 


RIGHTS OFFERS 


Issue 

price 

P 

Amount 

paid 

up 

Latest 

Renun. 

date 

1094 

High Lon 

Stock 

dosing 

price 

P 

*or- 

475 

M 

4/10 

50pm 

54pm 

Commercial Union 

54pm 


360 

N1 

21/10 

46pm 

25pm 

EMAP 

25pm 

-4 

2S2 

M 

11/11 

34pm 

20 pm 

Weir 

20pm 

-8 


FINANCIAL TIMES EQUITY INDICES 

Sep « Sep 13 Sep 12 Sep 9 Sep 8 

Yr ago 

-High 

low 

Ordinary Shan* 

2397.4 

24269 

242SJ 

2426.6 

24549 

23212 

Z713uB 

2240.6 

Ord. dtv. yield 

4 23 

494 

4J24 

4.19 

4.15 

431 

4.46 

£43 

Eem.yU.MfuU 

6.11 

6.04 

6.04 

6h3 

5.98 

4.72 

6.11 

3.82 

P/E rraki net 

17.47 

17.68 

17.68 

17.73 

17.S9 

27 JM 

3£43 

17.47 

P/E ratio nil 

16.06 

18.28 

1£27 

IB. 32 

18.49 

24.96 

g£gg 

1&06 


Tar 1994. Dnflrarv 9»e telex lines campi u aic n: hgn 27116 2/DZ/M; bn 494 28/0/40 
FT Ordkiav Shore tete base dote 1/7/35. 


Ordinary Share hourty dianges 

Open 9m> ULOO 11i» 12J0 13 lOO 14J0 1SJ0 1&00 High Low 
2433.0 2421.1 2405.7 2409.4 24Q7.Q 2401^ 2400.5 2400J3 2400.4 2433.7 2394.6 


Sep 14 Sep 13 Sep 12 Sep fl Sep 8 Yr ago 


SEAQ bargains 
Equity turnover (Emit 
Equity bargatesf 
Shares traded (mljt 


24512 25.083 27^05 

1183.7 1074.9 

- 27.228 29 312 

4802 4127 


tEwteJng imre-maricM buainraa and ouereoas tunwer. 


26^70 27,449 

1278.8 13002 

29.281 28527 

527.8 54&D 


28,904 

1495.0 

32518 

849.5 


OPR 


THE TOP 
[UNITIES SECTION 


for senior management positions. 
For advertising information call: 

Philip Wrigley 

+44 71 407 873 3351 











28 


FINANCIAL TIMES THURSDAY SEPTEMBER 15 1994 


.ONDON SHARE SERVICE 


BANKS 


CHEMICALS 



ELECTOOMC A ELKTTKAL EQPT - ConL 

*tt YVM IM 

"* -1 *• V© 


EXTRACTIVE INDUSTRIES 


HEALTHCARE 


Hft n HMW 

NWIttE 

AfgbfcMK 


44 1U 
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73 TUB BASF DU. 
47 

5* 6.7 BTP. 


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1T2* -V Ml >2 IIS 112* 10* 

1f7*i -V 1«4 1174 117* 1£L4 - 

SOI -10 M W 9*1* 3* 19* 

H1A -A H2H E101 34*08 OS - 

ta u 

75 *3 “SO SO T2B* 3* 

77 *80 77 5.1* 102 

» +4*1 171 123 63* 19 


an ■*■*■•■** 

-WO 3B -4 133 267 434J 

5§ 51 Bgs=a W :**TS* K 3 1 TB 

3.1 18* MMiMk— _1HQ at -1 n as HU 




.fiE 7BU -55 1113 660 6,137 42 

,+ICl HU -9 MB 619 7*31 5* 



HSBC ma Sat-.' 

BBSSiSrB 


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m__ 2M4 S3* S214 

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32 


X 


FINANCIAL TIMES THURSDAY SEPTEMBER 15 1994 


FTGttyttneUnl! mist Prices are availJbto-ovar the telephone. Call the FT Cftyfeta Kelp Desk on (071 ) 873 4378 for more detaBs. 

a b a as? s a. k a managembusbwkb 




































































































































































34 


CURRENCIES AND MONEY 


FINANCIAL TIMES THURSDAY SEPTEMBER 15 1994 

1 MONEY MARKET FUNDS 


MARKETS REPORT 


Gains for Swiss franc 


Oaring ' Ohm* Bdfalfw Du 1 * HU Om month Him ewnthe- s Om you . 
irid-polnt an day spread Mrii taw Rate HP* Rnt -<PA Hri> W»A 


Continued uncertainty about 
the outc ome of ™»*t month's 
German national elections yes- 
terday helped the Swiss franc 
to Its strongest level since 
October 1991, unites Philip 
Gawith. 

Investors seeking exposure 
to core European currencies, 
bat wanting to lighten their 
D-Mark holdings, drove the 
franc to a London close of 
SFro.83. from SFiU.834 on Tues- 
day, against the D-Mark. 

Elsewhere in Europe, 
though, the D-Mark was gener- 
ally firmer on declining expec- 
tations of another round of 
rate cuts. Against the escudo it 
finished at Esl.02.2, from 
Es 101.9, while against the 
peseta it closed at Pta83.l2, 
from Pta£L92. 

Despite firmer than expected 
retail sales figures, and 
rumours of central bank inter- 
evention, the dollar closed 
lower at DM1.5374, from 
DM1.5493; and at Y9&S75 from 
Y99.045. 

Sterling finished firmer 
against the dollar, but down 
against the D-Mark, with the 
trade weighted index 
unchanged at 792. 

■ Although the Swiss econ- 
omy is benefiting from good 
growth and inflation perfor- 
mances. analysts said the main 
engine behind the recent 
appreciation was rising politi- 
cal uncertainty in Germany. 

Markets are now nervous 
about whether Chancellor Kohl 
and his alliance partners will 
win sufficient support in next 
months elections, to continue 
governing without having to 
enter a grand coalition. 

The D-Mark had recently 
been bid up following renewed 
dismission of a multi-tier 
Europe. But investors, con- 
cerned that their exposure to 
Germany had become over- 
weight, have recently been 
diversifying into the franc. 

Some observers believe the 
franc is vulnerable to a down- 
side correction, possibly aided 
by a cut in central hank rates. 
The central bank has recently 
been very accommodating in 
its money market operations, 
with a three mon th money bid 
rate of 323 per cent 
Mr Adrian Cunningham, 
senior international economist 
at UBS, said this might indi- 


MwftMe ■:*- 


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i-ah> central bank concern at 
the impact of exchange rate 
appreciation on exporters. He 
gaid bwiinigai charts suggested 
that if the franc appreciated 
through SFT02230. it might 
well revisit the 1990 levels of 
around SFKL8130. 

■ The higher than expected 
OK retail price index, which 
rose 2.4 per cent in the year to 
August, unsettled the short 
end of the interest rate market, 
raising feats of a further tight- 
ening of monetary policy- The 
December short sterling con- 
tract traded over 48200 lots to 
finish 14 basis points down at 
9323. and prices Cell across the 
length of the yield curve. 

Analysts said the figures had 
undermined, in some quarters, 
the view that Monday's 50 
basis point rise in interest 
rates had been a pre-emptive 
strike against inflation. 

Mr Richard Phillips, analyst 
at brokers GNI, said there was 
a “disturbing bear market psy- 
chology” afield. He said inves- 
tors were using the futures 
market to hedge cash posi- 
tions. Futures prices were 
reflecting this spiling pressure, 
rather than a market view of 
likely interest rates. 

Mr Phillips mM the mflTkp t 
was looking for another 50 
basis point rise in. rates before 
Christmas, ratber than the 100 
basis points the December con- 
tract is itiwnmting . 

In its daily operations the 
Bank of Bngfamt provided UK 


money markets with late assis- 
tance of £4Qm after forecasting 
a saotkn shortage. It did not 
operate in the morning or 
afternoon rounds. Overnight 
money traded between 4% and 
6V4 per cent Three month ster- 
ling LIBOR was unchanged at 
5g pa* cent 

■ Currency markets appeared 
to have taken a more positive 
view of Monday's monetary 
tightwiing . Mr Avinash Per- 
saud, currency strategist at JP 
Mo rgan in r^m«km, sai d there 
was now a prospect of sterling 
decoupling from toe dollar. 

Earlier in the year starling 
had tracked the dollar, rather 
Him the D-Mark, with toe mar- 
ket taking the UK policy back- 
ground - an early pick-up in 
growth, concerns about infla- 
tion and a deteriorating cur- 
rent — as more shnffar 

to the US than Europe. 

But Monday's rate move, he 
said, had gone some way to 
overcoming market scepticism 
about the authorities' willing- 
ness to take the necessary 
steps to combat inflation. 

Other factors lending sup- 
port to sterling were potential 
D-Mark weakness, ahead of the 
elections; and relative bond 
market stability, meaning that 
there was less incentive to take 
reftige in toe D-Mark. 

■ There is little expectation of 
a shift in German interest 
rates at today's Bundesbank 

COUDCil irnwHny 

Ms Phyllis Reed, fixed 
income strategist at BZW, said 
that white she expected a fur- 
ther cut in rates, the Bank 
would probably wait for a suit- 
able peg to hang it on - proba- 
bly in the form of an improved 
set of money supply figures. 

The repo rate also looks 
unlikely to move, following 
comments from Mr Johann 
Wilhelm Gaddmn, Bundesbank 
deputy president. . He grid the 
current money supply situa- 
tion could not justify mtHng 
the repo rate to 42 per cent, 
from 425 per cent 


a* u e t 

Hum 1BSJS-18&78S HJU50 -101300 
kre 27001 - 274690 17460) - 175000 
M 040-0409 02871-04970 

am am&A-mxu saooii-zaBu 

Mi 358220 - 300080 228020-229400 
UA£ U5B3 - 5J680 15715 - 18735 


Fkttnd 

Franco • 

Germany 

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JR) 2.7051 
660) 105867 
(Ea) 246X6T 
(Pta) 200450 
(SO) 11.7760 
(SR) 2X008~ 
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Canada - .(CD 111 96 +0X089 189 - 207 2.1216 21096 2.1193 03 21187 02 21175 0.1 

Mexico (New Paso) 53646 +OX2S2 405 - 597 S3800 53383 ' : - 

USA (D 1X687 +OX074.683 - 690 1X800 1X630 1X63 0X : 1X6B1 07 1X6Z7 IX 


Austria (AM 

Hang Kong (RKD 

Mb SRsJ 

Japan ffl 

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daring Chongs BWofer 
n+d-poW an day MiaaO 


Ottfa mU OM maMh IhwMriki Onoysor XP Morgen 
Ngl. tarHri %PA ■ RMt KM Rate %PA Max 


Germany 

Greses 

Iratand 

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(Sch) 

108485 

-0.0586 

460-510 

10X700 10X145 

10X465 

OX 

10X488' 

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104X 


31X900 

-0209 700-100 

317960 31X300 

31X975 

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31.716 

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(DM) 

8X751 

■410429 

741 - 751 

51019 

8X720 

8X818 

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8.1016 

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-1.7 

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4X552 

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602 - 001 

4X740 

4X385 

4X592 

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702 

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5X807 

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582 - 822 

5X858 

5X586 

5X832 

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8X686 

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106X 

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1X374 

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370 - 377 

1X495 

1X360 

1X375 

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1X378 

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107X 

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234390 

-1X5 200 - 500 

285X00 284100 

234X6 

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238L275 

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(E) 1X486 +0X106 478 - 493 1X508 1X896 

« 1034X3 -4X7 435 - 490 1588X0 1981X0 

(LR) 31X900 -0209 700-100 81.7860 81X800 

(H) 1.7245 -0014 240 - 250 17320 1.7236 

(NKi) 57553 -0X467 548-563 57836 27276 

(El) 157X50 -0X6 900 - 200 167X00 156.760 

(Pta) 1Z7.78S -0X7 700-810 1 25250 127X70 

(SKi) 7X090 -0X007 062-127 7X380 7X690 

(SR) 12768 -0X165 750-760 13850 13750 

ff) 1X687 +0X074 683 - 890 1X660 1X630 

- 13371 +0X059 366 - 876 13395 13340 

- 1.46553 - - 


1X48 OX 1X46 09 . 1X286 

96838 -3X 1578.13 -37 1634.13- 

81X96 -02 81715 -03 . 31X05 

17247 -02 17247 -01 17188 

17603 -09 87803 -IX 6X626 

167X -67 151X75-11^1 166X6 
128.1 -3X 126.72 -2X 131X66 
7X255 -28 7X84.-29 7-7586 

L2744 IX 13723 - IX 13606 

1X58 OX 1X661 07 \3Sn 

13382 09 - 13344 03 1307 





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LEririririririaV. 0319944230 

.1*29 BJB7S i -1 May 


Auatnla (AD 
Hong Kong (HKD 
bda Pri 

Japan (V) 

Mriayria feD) 
Naw Zealand (NZ$) 
PMRppfrna (Pear* 
Saud Arabia (SR) 
SbHKxn (SD 
S Africa (Com) R 
S AWca (RnJ (R) 
South Korea (Won) 
Trim PD 

Thribnd (Bt) 
16 DR ms tar 8*p 18. Bd 
batsrs risrisd by oonsoti 


+00079 504-518 

- 265-273 

- 675 -726 
-017 500-000 

-00008 525-536 
+00015 598-611 
-03 000-000 

- 501 -508 
+0X009 881-866 
-00048 496-515 

-0035 400-800 
-015 800-200 
-00103 960-000 
-002 400-800 
Is h ris Mar Spot arils 
k UK. Irriand A ECU ■» q 


1X516 1X480 
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31X726 81X675 
992200 964000 
2X635 2X610 
1X611 1.6570 
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37506 07501 
14867 14865 
8X595 3X486 
44700 44400 
800X00 799X00 
28X105 26.1900 
24X600 24X400 
show only tf» last Us 
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1X512 -02 1X519 .-0L8 1X593 -QS 

7.7208 OX 7.7Z77 OX 7742B -OX 

81455 -3X SIX -ZB 

a w ra w 91 9B22S 2X * 95 Iff 3.1 

2X438 4X 2X325 8l2 2X06 -2.1 

1X615 -07 1X833 *-0.7 1.6086 -05 

8.7517 -04 37556 -06 37744 -06 

1467 1.1 14861 OX . 14784 07 

3X66 -62 3X943 ~4X 3X71 -34 

4.4837 -8L1 4X425 -8X .. , 

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262175 -h9 262575 -OX 

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MUKDOM, M7I 2J« I *032 Or 

1WU1BM 1 *379 -1 *447 Otr 


CROSS FATES AND DERIVATIVES 


EXCHANGE CROSS RATES 


UBS EUROPEAN CURRENC Y (MOT "RATES 


Portugal 

Spate 


BFr 

DKr 

m- 

DM 

■ 

L 

R 

NKr 

Ea 

Pta 

SKr 

SFr 

C 

CS 

8 

Y 

Ecu 

(BFr) 100 

1017 

16X0 

4850 

2X38 

4837 

6442 

21X0 

49SX 

4001 

23X8 

4023 

2X12 

4X83 

0158 

S12X 

2X51 

980) 52.17 

10 

0660 

eitan 

1X63 

2575 

2X38 

11.11 

2EOS 

210X 

12X5 

2X98 

1X48 

2X24 

1X47 

M52X 

1X31 

(JFFr) 6024 

11X5 

10 

2X22 

1X28 

2974 

3X78 

12X3 

2905 

242X 

1425 

2424 

1X12 

2X88 

1X01 

1800 

1X37 

(DM) 2082 

3X82 

3.423 

1 

0420 

1018 

1.122 

4392 

102X 

83.12 

4992 

0830 

0415 

0X79 

0X51 

84X3 

0528 

OQ 40X7 

8407 

8.146 

2380 

1 

2423 

2X7D 

1045 

2401 

197X 

11X2 

1X7* 

0X87 

2X92 

1X49 

1501 

1X62 

U 2.028 

0388 

0836 

0X96 

0X41 

100. 

0110 

0432 

1004 

0168 

0480 

0X81 

0X41 

0086 

0084 

0320 

0X52 

B 1M8 

3X23 

3X51 

0X91 

0X74 

9072 

1 

3X15 

91X5 

7409 

4351 

0739 

0570 

0783 

0590 

57X4 

0488 

(NKi) 46X4 

6X99 

7.782 

2X77 

0X57 

2317 

2X54 

10 

232X 

189l2 

11.11 

1X98 

0X44 

2X01 

1462 

148X 

1.197 

Fa) 2018 

3.889 

3X50 

0X79 

0411 

9903 

1X98 

4300 

100 

81X6 

4779 

0812 

0406 

0X80 

0837 

82X7 

0515 

(Pta) 24X1 

4758 

4118 

1X03 

0X05 

1225 

1X30 

5X84 

122J 

100 

8X73 

0X98 

0490 

1X57 

0783 

7740 

0633 

(90] 42X3 

8X90 

7.011 

2X48 

0861 

2083 

2X98 

8X97 

209-3 

1703 

10 

1X89 

0860 

1X00 

1X33 

1812 

1.077 

(Sft) 24X9 

4786 

4128 

1X08 

0X07 

1227 

1X53 

5X96 

123X 

1002 

5X86 

1 

0X00 

1X00 

0786 

77X5 

0634 

« «.7t 

8X28 

5X82 

2411 

1X13 

2484 

2.705 

1069 

2463 

2004 

11-77 

2X00 

1 

2.119 

1X89 

166.1 

1XBB 

(C» 2348 

4497 

3X94 

1.138 

0478 

1158 

1X77 

4998 

1 1 3-2 

9*57 

5X55 

0X44 

0472 

1 

0740 

7018 

0X08 

(D 81X8 

8X78 

5X59 

1X37 

0X46 

1364 

1.724 

6.750 

157X 

127.7 

7X02 

1X75 

0837 

1X61 

1 

9085 

0808 

(V) 32X5 

6-144 

5320 

1X54 

0858 

1582 

1.744 

6X28 

1508 

129X 

7X99 

1X89 

0045 

1X08 

1X12 

IDO- 

0818 

99X0 

TX15 

6X06 

1X01 

0798 

1836 

2.133 

0382 

19*2 

1800 

0282 

1X77 

0739 

1X71 

1X37 

1222 

1 


Sep 14 

Ecu can. 

rates 

Rato ’ 
against Ecu 

Change 
on day 

M+/-*om 
on ibU . 

% aprend 

ON- 

kid. 


2.19672 

2.14819 

-000082 

-2X0 

5X5 ' 


Batten 

40X123 

39X881 

-00166 

-2X5 

5X8 

.15 

OriBrig 

1X4984 

1X1339 

-000116 

-1X8 

5X0 

- 

Ireland 

0808628 

0X04902 

+0000008 

-047 

8X1 

8 

Renee 

063883 

6X4883 

-0X0404 

015 

2X7 

-T 

Portugal 

182X64 

190116 

+0075 

. M7. 

1X5 

-8 

Denmark 

743879 

7X8065 

+0X0117 

1X7 

149 

-51 

Spain 

154X60 

180099 

+008 

.. 012 . 

000 . 

-22 

NON ERM MB4BBB 






Orsece 

264X13 

291X76 

-0198 

’ 1012 ' 

-036 

. T 

INIy 

1798.18 

1942X5 

-1X4 

8X6 

-4X2 


UK 

0798749 

0794260 

+0X02985 

095 

2.16 - 

- 


1 1 Mil 'MB* 


UritedOnririnaiTVoatUi 

TOO* 82. HM* SMOW 0Bt-4«72W 

OAHWWiM 

HAW* lid 1M I Ul Or 

MM1MH til femrtrllQ 

1 0MMaMH. IMI 

nMOa oaaaraMi.l u bjm] uzmm 

SSSSStt==:l?« £5! 7 *W 

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sssa-s zJa ssl-ais 



'=nsMristaria.lbniari PU TSE 0737 

rnigah.. |*s *m ua 

zgkffszz Iss SS IS 


*10 MB 
KB *+■ 
tn B-Ml 
i» ua Mb 






■rib Kranar. Panon Frino. Noresrite Kronar. and Swadtah Knawr par «t Brig 1 *" Yris la 

P-WHK WTWIH (IMM) Ml 126JOO par DM 

Opan Uriaat Change Hgh Low EaL vol Opsn W. 
ip 06485 0X483 +00006 06807 08484 8,196 71X31 

K 06482 06494 +0X006 06608 06481 46.788 56X58 

v 06604 06500 +0X006 06810 0X600 669 3.714 

WW PWAMC WTUIW P*4M) SR 125,000 per8R* 

ip 07785 0,7797 +00010 07620 07786 7294 25X5B 

K 07801 0.7821 +00013 07838 07801 29X02 27X37 

v 07906 07840 +00007 07806 07640 86 263 


WORLD INTEREST RATES 


— V— RITU— gMM)yan12AperVrii100 

Opan Latest Changa tfgh Low Eat vol Opan Int 
1X182 1X189 +0X003 1X157 1X122 6J52 38X74 

1X186 1X206 +00003 1X280 1X185 19,178 29X77 

1X281 1X290 +0X012 1X290 1X281 62 2X61 


IQ HWUWI 6MM) £82X00 parE 

1X660 1X660 +0X010 1X680 1X650 3X05 25,753 

1X628 1X634 +00020 1X688 1X820 12X33 24X35 

1X602 1X802 +0X018 1X802 1X802 17 183 


Ban ewriff Mas aai by Bw Baopi Pon airi rin w- Qa ia n dBB — ta dteo a s ria g i 
Pansaaga cfangaa «a tar Boa a poMris Manga rites a waric euyaney. (tea 
rite bstaaat Oas apraadK ris psmMags riPw«as baoawan ria anted aariat a 
tor aeuaHor. and ria naateuda pararited pariaottga dwMaa of ria cManeyia 
ScBOriririoa* 

(TTriraB) aadhp red Mftsi Ha a asiwa U d > rw i BO* A rfr wa nM erinritad Py i 
■ iWUWLHf «76 CWM8 181X60 feente py pauntfr 


Sap 

- CALLS - 
Oct 

Nov 

St*> 

-WB- 

Oct 

Nov 

8X9 

085 

8X4 


_ 

0X6 

648 

647 

6X8 

- 

002 • 

024 

3X9 

4X0 

4X2 

- 

024 

085 

1X7 

2X3 

2X1 

0X1 

081 

143 

006 

1X2 

1X0 

0X8 

1X9 

2X0 


MONEY RATES 


taplwnhar 14 

Over 

right 

Orw 

month 

Dm 

nda 

3h 

mtfta 

One 

year 

Lome. 

frtter. 

Ola. 

nrte 


4« 

5* 

Sft 

Sft 

Sft 

740 

4X0 

warit aoo 

4ft 

8* 

8ft 

B| 

6ft 

7.40 

4X0 

Renee 

H 

Sft 

Sft 

Sft 

6ft 

000 

- 

weak ago 

H 

Sft 

Sft 

Sft 

Sft 

0X0 

- 

Oermany 

4X7 

4X5 

4.96 

010 

046 

000 

4X0 

weak ago 

490 

4X6 

4X6 

6X2 

033 

000 

4.50 

Ireland 

4i 

Sft 

Sft 

«ft 

7ft 

- 

- 

wash ego 

** 

Sft 

•ft 

•ft 

7ft 

- 

- 

Rriy 

6ft 

6ft 

Sft 

Oft 

10ft 

- 

7X0 

wash ego 

8ft 

Sft 

D 

Sft 

10ft 

— 

7X0 

Nattwrtentte 

4X4 

S.01 

107 

6X2 

080 

— 

sxs 

weak ago 

4.64 

5X1 

sxa 

017 

051 

- 

025 

&M4tMtftNRd 

3ft 

3ft 

4ft 

4ft 

4ft 

0625 

3X0 

weak ago 

Sft 

3ft 

4ft 

4ft 

*» 

0625 

3X0 

US 

4» 

4ft 

5 

8ft 

6ft 

- 

<00 

weak ago 

4ft 

4ft 

Aft 

Sft 

5ft 

- 

4X0 

Japan 
weak ago 

2ft 

2ft 

2ft 

2H 

2ft 

2ft 

3ft 

2ft 

28 

2« 

- 

1.75 

1.75 


Sett price 
94X3 
94X9 
94X9 
96X1 

WOUUI 

Satt price 
•U1B 
89X2 
0023 
88X2 


I QJFPqr gwire points of 100% 

Hflh Low Eat wl Open Int 

94X8 94X3 18234 12S234 

94X2 94X8 60362 181 BOB 

94.43 94X8 80185 167399 

94X6 93X0 24258 105060 

4WI (Ufg LIQOftn polrtfa ol 100K 
HV> Low Eat vol Opan bit 

91X2 91.16 1302 16282 

90X0 88X0 8101 32299 

B9X9 69X0 3894 19832 

88X8 88.79 780 14745 

WW (un=8 SFrlm pomta o 1 100K 


Open 

Satt price 

Change 

V*0b 

Lew 

Eat vol 

9083 

9093 

- 

96X3 

9091 

1059 

9052 

9054 

-002 

90X5 

95X1 

3709 

9015 

9017 

•001 

95.16 

9014 

758 

»<83 

94X4 

-0X1 

94X6 

64X3 

497 


, rig9 wU CIBrtMSi Pjm 15X0 . Pm. d** epm tat. OBb t 


UK INTEREST RATES 


LONDON MONEY RATES 

Sap 14 Over- 7 days one Uay 8bt One 

~ ■ nodu e mu wUi in onlha niordha ye ar 

Writer* Staring 5H-4V 51, - G 5&-S& 5B-5B A - &% 7V - 7*, 
Staring CDs 5* - 5& 5 fl-Sft ft-8 7i- 6fl 

TraMDqi Off - - . 5% - 5% - 5& 

BaricBM - 63,-6*, 6V-5& 6-8% 

LoCriKriaaDrdtee. 5A-*iJ <3 *8 ShSh & - SB « * 6h 

□teooua Mariat chpa S\ - 4^ 6-4% 

UK cHaring Pri* bass taming rite 5% par cant from 3 a p te u *er 12. 1994 

Up tol 1-8 38 ‘ M HZ 

tecria rnaodi aiorthi wata 

Carta GfTte<tep. (2100X00) • 1% 4 3% 3% 3% 


US$500,000,000 

Rottam RaxkSbbobdd4A38d Exmn - Kuoxvaiion Cuamcxas Dai 2000 
UDBD BT JP MOBGAKOoH KATSKPnaKKE OT FCMMNG AMP 
MuvmiMNS aSOPOBOMUID lA4XTOTB8lUKiCaKAI«nO BANELaeilD 
Notice it bseby given that the me of iofeicat ^zScablo to payment* under 
the milfiflilra cortc npon rling to jwjuimU of interest raider the loan is, hr 
the Interest Period from 14th September 1994 to 14th December 1994, 
53125% per szunnn. with 8 Coupon Amount of USS335730 per im$ 
250X00 Certificate, payable on 14th December 1994. 

MI ite&^Biafcgj uarili w i tf&A. 

AgeatBaa* 


Heart B Lbntod 
DSStHMOXOS 


la a o wmt aa cn wtfc tea p ievfai u ea of Ibe Sates, ufae b fradar gteaa ihri toe ibe hteat 
Mod fitan 14dt SqaEoria, 1994 » 14& Decaabec, 1994 Etc Note* wtB bear a dk <4 tarot 
of 5.3123% per ■man.-’.. 

Tia fracRri ameaetpnafrte on 14A Xeecnbri; 1994 wjDte US3 2J36X14XS. 



Oal I|>i K ririJQ IT— 
n an teti II I) 1 ~ 




ECU ftttveee pie 


Thfr+TTMa 

tecritW l 


■ 9 U80R FT London 


US Ddor COo - 4X6 4X4 &14 6.71 

worii 9QO - 4.65 4.80 8X7 6X6 

am United Do 3% 35 3% 4 

eerie ogo 8% 3* 3W 4 

9CU Lfrriad Da oas naaai i ntft mu s nriw Uk a me* ri* l HR s,. a ueon w 
■tea an e»Md ram Car fUkn quoted te ffia mu Dy fra* n oev ite i bteM at Hate • 
tot- lb* bride an. (Men That Bte* rflttm Bedtea md Nriiond W te bri eS u . 
Irid rntea tea teoM M Bn oonwrio Monay Iteaai 116 S COa and SOfUWted Oipeal 

EURO CURRENCY MTERBST RATES 

Sap 14 Short 7 days Ono TTaee Six 


8290 9290 

92X3 9249 

> ratted on APT 


94X8 
9347 

-0X6 92X1 92X8 
-0X6 9253 0248. 


SaigMfl Franc 
DonWi Krtra 
D+Mt 
Orich Gtridar 
ftanen Franc 
Pore quo— Eac. 



9rite Frriic 
Can. Doter 
US Deter 
adtenua 

YOB 

Arise $8*0 

Short tern ram 


4B-4M 
6%-5% 
4% -4% 
6-4% 
6% -5V 
. 121,-11% 
7, ’a - 7% 

M-DI 

3%-a|, 
5%. 4% 

4)1 

9-7% 
2A-2 1 , 
3% -3% 
ire odl tx tea 


tt-S 
* 3%i 
5A-5 
4fl-4tt 

ev-B 

3% -8% 
US Deter ar 


61,-5 
6%-»% 
5-4% 
5-4% 
5A-BA 
io% - 10% 
7B-7& 
«-5% 
3% -3\ 
&*-#a 

<11-41 

2S-2& 

4.1-4 it 

6 Yon, odMrv: 


6%-B% 5% 

6% -6% 7& 

5A-4U 5A 
5%-6 5% 

3ft-S& 6u 

lid - 10% 11% 
8-7% 8% 

5H-5fl A 
4-3% 4& 

6% - 5% a • 

sd - 4S 6l« 
8H-8tt 9& 

2%’2A 2tt 

4%-4 H 5d 

b» (riy* 1 noScB. 


-5% «-6,4 
-7 & 7ft- 7A 
•5 it 5A-5 A 
•5% 5%-Sb 

-as 6d-6d 
- 10% 11% - 10% 
- 8V 9d - BU 
■6% 7d-7* 
-4d 4\-4% 

■8% 8%- 6% 
■« 6 : a% 

• od to% -10% 
•«* 2%-2fi 
-Sh 5H-5» 


4QWTW MMODCBririt QMM) 31m points el 100H 

Opan Uterit Change High Lew EaL vri Opan fra. 

84X4 94X8 - 94X4 94X3 59X77 326.415 

94X8 94X8 +0X1 9427 04X4 155X39 503,164 

93X0 99X9 93X0 99X7 151X24 894X68 

XUWT — JL HmW (MM) 31m par 100% , 

9540 9841 +0X2 9642 9540 ‘ 2X08 5X50 

94X3 94X4 +OHB 94X4 94X2 889 11.182 

9441 9441 +0X1 9442 9441 555 5X11 

ri 9ga. tee fer p mihu tof 

Mt OriiaOW B DM1 rn petnta o< lotm 



Aa frteriM iMdn la Mod fraaq, - HaneW aod For t 

bndunrad aaacemMappfiaba, fans M 071 3SX itVT. 

. Am— ten ann a .lly nprard w trtiu 72 haw. 
teaodrM*oXriBpriBtea*«.to4pja.aaTktete-r Bi ITTf 


Signal 


i.'O- soft;v!*rc ocplicrtt-or 


for you" cm dr? 





Strta 

Price 

Sep 

Oct 

CALLS - 
Now 

Dae 

” s-P 

Oet 

PVT8 

■ Nov 

Dec 

9*75 

9600 

960 

016 

001 

0 

008 

001 

0 

006 

002 

0 

011 

003 

001 

0 

006 

032 

011 

0X1 

oxs 

013 

0X2 

05G 

016 

033 

0X6 


ll.l .-ln.'l 1 1 1 J ■ ifq 


nnuu (MAUF) P«te Intorber* eflorod rate 


Open Soft price Chengs 


BWIM — lOOOLiXII (UFFy 51m print, cf 100% 

Open Son price Chongs Hgh Low EaL vcl Open Int 


. Oris maw Me 44094 Heaton dafa epan k*. Oris 2S0BK Puts 209951 
HMB HUM OPTWIV (UfFB 8ft 1m pointe o7 100% 


. CM, 0 Puri a pimms tofa epm he. cate seas Put. W9B 


Mam&Oaapgny — &7X 
Alod That Bank—. — 5X5 

aBBbt* 5J3 

•HonyAmbectM 578 

Bte* Cl Banda 575 

Banco BteaoWs^a- 575 

BwriotCypnri 578 

Bar* cl inland 575 

Briridfrvfc. W8 

BrtdScctend STS 

Baffle Bte*-1—' — STS 
MBk of lid East — 525 
•EtonnSNptey&CDLkiX75 
CLBankNBdBibnd_ 575 

CB*ritM4._ —575 

QydasMe Barit™ 575 

7h, Otxjpsotee BridtETS 

OorittSCo— 575 

QeritUonnaM 575 

Gypnetariar Baric _X7S 


Oman laerie 6X5 

BteterBMUMBd—. &T5 
nanteHOMBafr-S 
•HoOMHamiw *Co _ 575 

Ctobtefc 575 

•GwneaaMahan-^. 57s 
Hri*BnkAQZteicfi.X75 

SHanhraeBer* 575 

HrihafateA Grin frw BK. 575 

Manual 575 

' a Hen 6 CO— 575 

Haipang 8 StantfwL 5X5 
Jt*nHodgoBte*_ 675 
«xqpridJeae(^&8n5J5 

UoydoBank : 575 

MB»ri (Otefc Ud 575 

UdandBte* 878 

‘MCMtBaafrfrtg — 8 

NaWoafr i i iri or 575 

n ea lJra fea ra STS 


tftatatfieQrinrtaa 
Ooricraftn Usaadb oo . 

fengriaMkain 


. HayelHkQf5csCwKt_ 675 
•SnW&nftrmStos. 975 

T88 STB 

«UDBadtttfMamK_- 575 
UMy Tori Bar* n- — 575 

Ml ■■ ii Tut. r-575 

Vlitewair I rirfrar T~ 
yUdilM. STS 

9 WamOerr of London 
Imremnwif Banking 




Petroleum Argus Oil Market Guides 

. Petroleum Argus 


INDEXIA U Plus 


Technical Analysis ‘JofHvau 


Currency oi Rond Fax - FPFE 2 t ,.,. i 

uKu Uci v ac'ci c«v* Mtvrv* ‘a.. . . 



ittynmuiaoqta imbmiohu, 

ww AV aUjiwt e 













F.NANC.AL TIMES THURSDAY SEPTEMBER 1 5 1994 



EUROPE 

WSHttfiSep U/Scft) 


AueAir 

bmus: 

croon 

EAQM 

EW 

Len7T» 
Man -it 
CVMv 

PWfjn 

Redout 

HawO 

VATn; 


VbdUr? 

Water 

Wkrtjg 


iwn 

tru 

MO 

3.140 

1.460 

1.170 

KU 

1.041 

030 

400 

rv4 

MSB 

355 

iW 

455 

3 JOi 


“5 3JM 
. - IJ70 
-ft 104 
-5 4.?« 
.. 1.713 

*7. 1.387 
«3 744 
-3 1.1*7 
■ 1.1150 

-3 400 

*3 358 

*T 1.1RQ 

-1 4(JU 
— H 701 
-« GOO 
+6 4,340 


1.750 £4 

970 00 

3,140 0 5 
U90 u 
13)50 04 
550 ... 
845 1.4 
808 3 1 
403 12 
171 17 
era 

326 1.7 
MC 13 
430 1ft 
3,411 10 


- — 870 

LWm BOO 
LMCop 413LBO 
Iff** 130 JO 
Lfroal 1.162 
Lagmd 6,000 
Lw*»» 387.50 

LV&mm 512 
Mentis 232 
****** 124.10 
940 

frOEU 137 


m 


BEuauwuaaMooBa(Sopi4/Fra) 


Aefeima 


AM 

BBL 

HdnU 

KhLPI 

UiQMB 

Bvcd 

Bskrl 

BBnOm 

OMR 

onu 

iTeup 

ratvi 

nnatr 

Bacfe 

HtnAC 

Fans 

OH. 

cwjav 

ob m> 

Gndnq 

Cvam 

o*w 




moMik 

KBnfcAf 

Munn 

Mam 

PanLu 

Ptftaa 

Pwrtn 

Head 

» 

SocQnB 

SSnAFV 

SoOna 

Sohac 

Sntray 

TlGBM 

UCB 

LM0n 




4. J15 
7.T0U 
4.850 
4,180 

lG.mo 

21.500 

30.150 

£430 

25.425 

17.100 

3.495 

5540 

IBB 

7.400 

1.270 

5. (40 

3.100 
2.610 
4ft=0 

4.100 
1.410 
B.DBO 
0.580 
4.850 
2.990 
ELMO 
0.450 
e.iBo 
1.440 

18.600 

10.150 
2.805 

MB 

4455 

4.790 

2425 

2455 

13.K4) 

1450 

14ft7S 

0,850 

24.125 

2.655 


-is 4.450 a.iTfi 1.7 
-10BJ90 7^10 31 
1 50 5400 4.000 _. 
-40 4.560 1000 +-» 
... 19J*I 1BJ60 2.7 

-.2695021.500 2ft 
31800 58 
-to £050 £105 1J 
-375 a SOS 20,150 lft 

... <1875 11JB» ID 
*152.700 2.190 3J 
-40 8400 5,400 44 
-2 215 154 bft 
— BLOW 0.100 18 
->6 1.550 1ft20 2.1 
-BO B.B20 5.4'* 7.5 

-30 3,781 3.070 JJ 

— 2.670 2.480 .... 
-M 4 SM 33320 4.6 
-20 4.470 3.850 4.8 
-12 1.660 1J20 2-B 
-10 0.180 7-900 sj 
- 10 111800 8400 1.8 
-20 5.550 4,180 24 
-10 £SB5 2,780 53) 
-50 8400 6.300 1.9 
+30 7.050 BJJrO 18 

6.400 6.000 48 
-ID 1,830 1.440 6.5 
...1940016000 .. 
-125 10.775 9898 28 
-95 3.660 2.705 5 D 
-12 588 420 "M 

-730 6.200 4840 <4 
-BO GJBO 4.780 44 
-6 2.636 2.125 5.1 
... 2836 2.(06 4.0 
-100 15.700 11.150 48 
-25 1.87S 1.462 5.7 
-475 17.160 13.750 48 
-20011.000 MOD 4.8 
—400 20,10022310 28 

- 2830 2440 48 


' Ck*n 
' Parta 
PanaR 
' non* 

PmftC 

: Sip 

Promo 

Kartell 

RwnyC 
»WPA 137.40 
ftterf 677 

ajc 740 
Saam 2860 
Sfiobn 850 
SHoiH 1875 
Ectmar 36880 
SebSA 550 
SMmQ 380 

SkIKO 450 

3»Bfl 2.100 
SocOn 562 
SommrA 2,150 
WU 320 
SUBiO 2S2.1D 
Spm 2TB 50 
J«h £450 
n»nca 14880 

TaUB 319 

IW 14780 
IffBLoc 380 
U*nl 473 
UnlmFr 450 
VdJbo 280 
terc 216.10 
WnatO 2&6.B0 


•t? TO SOU 
-10 902 861 10 
-6. ID 491 JU 377 33 
-1.70187.7010830 ._ 
+18 1J8S 1,060 08 
+10 6,7906,400 08 
+6 374 21(150 
-2 634 400.10 12 
-180 274 207.10 18 
-2.4013650 8780 48 

♦ 11 1JW 882 6.4 

- IBOflO 1»6.7 

+180 260 170 

+180 525 331 58 

^ KB 30 61 
-■50 234 141 38 
-4 >»5 371 29280 7.1 
-29 936 752 18 

+4 1/105 785 _ 
-6 1.131 BOS 18 
•3 BM 35210 _ 
-JO 267 201 — 
—.10 157 40 11380 £7 
+9 752 542 18 

♦ IB 945 BD 18 
-14 3JW2J80 18 

-1 734 578 38 
-22 1.7B0 18O9 IS 
+680 48B8P 387.10 £7 
+2 600 472 28 
-6 610 39610 7.1 
_ 700 448 88 

-5 2470 1.700 _ 
-10 7W 348 4.1 

— 2/R» 1.710 28 
+10 539 304.10 _ 

-4 377 244 4 8 
-1.30 078019350 22 
_ 3.120 £2®1 18 
-280 214 HMD 8.1 
—480 36450 293.10 38 
— 280 22480 13530 31 

♦ 10 48) 333 39 
-20 BO 425110 58 

+3 00044050 72 
-1 307 221 38 
-480 33S 240 38 
+580 359 24810 48 


(Sop 14/Kfl 


A»PA 830 _ 7B0 565 £4 

g*a*W 207 ♦] 281 205 2.4 

CariA 287 +586 333 2S1 1.1 

COAtl 5.700 - 7.660 5800 08 

am 2A 115,000 +1800 laUniHOO 0 5 
DMflCO 
DotfWi 
EMM 
nsB 


930 +QJB 1.140 
318 +4 427 

878 OJ 
307 3ft 

... 

1K7 


151 5.4 



+7 615 

395 2fl 



+4 643 

446 2ft 


171.64 

-036 278 



367 

+? 435 

330 £2 



+ 20 1.660 

990 0.4 


264 

.- 385 

2S 5 3ft 


677 

+4 *B3ftl 

565 0.7 


510 

-6 737 

499 1ft 


530 

+5 813 

605 08 


5=4 


«5 Oft 


410 

+3 495 

3=1 £4 


340 

-40358.13 

300 



— 1.372 

510 1£ 


=37 

.... 267 207.96 4 J 



RortoB 

SoodaA 

Sophia 

Slpfl 

ToBtai 

TopOsi 

UWM 


FINLAND (Sep 14 1 Mko) 


— GaaiAar (Sep 14/Dm.) 

"" - 188 +4»MW0 153 1.0 

■— AOndV 585 -8 636 530 28 

— A°44oBB 1.100 -GO 1.4*6 1.110 1.2 

— ABB 2.430 +] 2811 )wi Q.8 

— Atom Bra -2 B9SS0 576 1 8 

— Artn 830 -6 1,181 897 __ _ 

— {SSP 1 “5 +151825 787 08 _ 

-- BASF 31880 -JO 34100 278 28 _ 

— BOOWriC 496 .... 510 435 18 

— &*gas 38080 -80 4B3 MB 28 I 

— Ban* 302.8® -2.50 40! -DO 331 J8 88 _ 

"• Bggg 1 -7 70 53150 VHM 3 .7 _ 

— BMWBr 00080 -1 629 639 1.8 _ 

— 434 -9 575 414 3.0 - 

B*SdOr 1.064 -0801.106 815 1.4 _ 

... BoKr 287 -4 34550 238 1.7 _ 

— BSy SI -a 628 377 3J _ 

— BBBo 080 +2 0S1 7H) 18 _ 

CoOtnr 1J60 +7 1830 1.140 08 .. 

MtrtP BBS +15 1.030 931 12 _ 

?nnul* 317 -2 3W 20880 38 _ 

ConW 237 -1.70 208 22B 1.7 _ 

Otw 444 —6 BOO 423 OS _ 

— S?* 814 - 50 —680 8iW 609 18 „ 

Bjsffloa 470 -7 SGG 443 1.5 _ 

_ Dl Bab 242.70 -180 20080 21080 _ _ 

gartBt 70680 -180 86780 65050 28 _ 

from 172 +3 IBS 132 28 _ 

DouipB sot -14 607 478 28 _. 

Drip** 322 -1 337 300 18 _ 

OrsSSs 39980 -80 46680 346 3.4 _ 

CCHE fit® -480 618 46S 1J _ 

GmSnn 2B3.50 +80 307 263 1.8 _ 

GkllKJi 729 „ 730 690 14) „ 

Kw*a 222 -1 245 1 BO 28 _ 

HttCm 1.320 +30 1 J80 1.141 18 _ 

HnkOP 685.20 -tt30 681 564 1.7 _ 

Itlfc 348 -12 440 343 2.8 _ 

Hoorn 1820 +2 1.0BB B57 13 _ 

H-OW 34180 -v9D 3S880 28420 28 ._ 

Htnwm 848 -9 1809 830 18 _ 

Jfcrtw 21780 ... 253 20B 28 _ 

KB 285 -1 324 208 38 _ 

MWk 369 +1891 433 353 22 _ 

KBil&S 15080 +80 168 131 ... ... 


— fSf* .0^*6 -SB 11300 W« S3 

“■ gO 11.290 +170 13,300 BJOI 4.8 
~ *20 2730 ijsz 1A 

— I - *?" 4 -“0 +30 5,196 3J63 18 

— Torafa 28800 +3503680004400 1.1 
-■ J.BKFf 1B4MD ... 04862 17 J00 3.1 

— (Mean 11700 +E0 16JW HUSO 17 


- NETHERLANDS (Sep 14 / Fta.) 


AflNAmr 58 _ 73.70 56 48 

AEGDH 87.10 -1 11080 0070 38 

AIWO 49.aU „ 53.40 42 00 „ 

AgO U 210.00 -80 22B187.B 3.1 
Boom. 35JOaJ -80 4770 3570 38 
BM«on 40.10 +.10 52 3780 2.7 

S* -JD 7780 8280 ». 

PSM 1548Q +2801564010580 1.0 
D*nPo 194.70 — IjW 208 173.70 28 
asow 1G&40 -.40105.70 145 18 
FhhDpfl 1880 _ 25 1380 48 

MmOR7280A -JO 68.40 88. ID 44 
Bamma 82 ... 1069) 82 4J 

GBrOpn 44.70 -.405880 44 28 

ftaBtW 13780 _ 15780 123 _ 

Honkn 24070H1 -130 25020850 18 
Hour 302 _ 33650 284 37 

HsrOpR 78.80 -.10 B3 4880 58 
KumDsp 7&5D -liO 9X50 &fl-50 23 
«££■_ 44^0 -J» 4570 84.70 27 

"ffiPeP 77.30 -<40 94.70 73.10 07 
hlMin 8380 -80 0880 7470 7A 
KLM 49 40 +.10 57 JO 4080 28 
WfBT 50 JO K 42.10 as 

M 53.90 -JO 66.1 □ 47.BO _ 
KJWW1 4660 -JO 5770 48J0 3.1 
NmM 6480 +.10 BS80 5880 5.1 
ffTgne 8280 -3 JO 1KL2D 72 28 
MTDH 0370 +.10 80 66.75 — 

^ayS f 74 JO +80 8980 8580 38 
FMM 57 JD -JO 56(30 40 08 

iW/fir 74.40 + GO 8480 71 18 

Dotwco 118.5S -JO 131 112 JO 
ROAIICO 52.60 +.10 88 E2J0 58 

Rome 11880 -.1013540114®] 27 
RMan 82.40 -JjO iDEfiO B2.40 53 
Rputfl in -1J02T5A01SSJO 48 
StOTIW 45.40 -JO 6080 4080 18 



4J70 
MS 106 
Ftdifir 1.180 
HcheBr 11J7S 
HcnoOi 8,155 
_ SGSBr 1J0O 
— SMHBr 765 
.._ SMH Ra 188 
Sndjflr BB2 
ESS 
1843 


378 

._ SaHkflQ 165 
_ BtrfWBr 5B8 

SaftoRp 527 

_ S-Btfl 84ft 
_ OnftkOr 1J12 
_ wmrflp 626 
_ ZUhB 1.281 


MB +5 971 782 15 
183 — 10014358 18 

740 +5 991 700 18 

1,800 -2D 1,8301,400 28 

1820 -16 1.437 1.063 20 

137 -5.50 175 123 . . 
1A05 +15 1,738 1A29 4J 

-30 5J4D 3.780 ._ 
-1 283 186 68 

_ 1.540 1.001 _ 
_ 11040 11, IS 0.4 
-70 7^05.160 OLB 
-4O2J00UBD 2.4 
-1 IMS 710 18 
-3 277 148 18 
-8 BBS GG5 _ 
-6 670 642 — 
+20 1,650 1.460 Z-6 
+11 1,100 B4S 129 
— 531 
-80 2S9 
-2 815 
-2 770 

-6 088 

-6 1803 1.Q3S 16 
-5 B32 610 IE 
+3 1815 181b 1.0 


KSdann 

_ KMmi 

_ mu 

_ KMi 
KoMSt 

... KdMM 
_ KokBe 


_ Konbs 


z PACIFIC 

Z JAM# (Sep 14 /Tan) 


Hpfil 


Alnmas 1J20 

‘ " 65S 

1,110 
1840 
1820 
. 188D 

_ AnOoCn 823 
_ Anrtau i/too 
DM 478 
_ Aoyema 3840 -140 
_ Artnffl 4JJ70 -10 


Unnp 1BBJ0 -3J0 23817848 80 
VMJ 187 JO -2-30 2031B4SB 1J 
VnOOpH 48 -1.40 5BJ0 4KJD 28 
WXDpR 121 +180 13150 101 JD 18 


- RORWAY (Sep 14 / Krone) 


AtafW 7180 -3250 112 71 48 

BrnanA 154.50 -180 175 130 08 
OwBM 12.W) _ 1880 11JSB _ 

Dynobi 178 -180 188 125 1.1 

Bfanflr 78 -180 114 7880 _ 

HflBUU 11980 -2 140 100 3.7 

ttorf 30550 +450 390 280 18 

Lett H 881+1 11530 86 3.4 

257 —450 2BB 208 18 

__ 18050 +50 208 140 05 

frHt 214 -1 306 211 18 

RTWrA 138 —16480 13G 3.7 

Sao&M 82 -150 81 74 2.4 

“ “ 0050 +80 81 72 25 

76.50 — 87 72 65 

103 +280 122 8S5D 15 
120 — 151 114 2-2 

31.40 -1.10 6450 31 — 

66 -2 88 55 8.7 


— CWdten 

— Com 04 

— DttC 


(Sap 14 /Pis.) 


A nt 

BBV 

BCrtH 


BPopt 


821 +1 640 515 2.1 
521 +3 558 451 28 


tenet a 

nnni 
Eir|nA 
1*00 R 
run i 
KOP 
Kj+kO 

KoneH 

Kymnwi 

DMmA 


MotjSA 

MolaS 

NntdBP 

OlKinna 

PnhlA 

PaoB 

Rppnla 

StekmB 

Impsn 

Uni Lot. 

Vaimct 


106 

140 

S3 

4550 

157 

1050 

57.50 

536 

135 

1ST 

156 

£t£ 

738 

551 

107 

K7 

S3 

103 

17J0 

1350 

ICC 


-7 154 

+2 178 

... 105 
-14850 
-1 733 

_. 17.40 
-.50 58 50 
-4 705 

-2 150 
-7 747 
-2 250 
-5 258 
—4 280 
-13 57ft 
-7 107 
-3 104 

-l 102 
-7 120 

-T 744 
-AO 31 
- .10 2050 
-3 129 


10250 18 
121 18 
80 ... 
3580 tj 
153 7A 
001 — 
45 18 
512 1.9 
10O 0-7 
1S2 18 
152 18 

an as 

TBO 08 
287 08 
60 - 
50 18 
54 10 18 
64 SO 18 
175 28 
IB — 

r 


KnM 

mat 

KNO 127 -.701815011510 — 

NOdiW 14280 -780 179 102.70 38 
LMnqr 68S -2 BOO G30 18 _. 

Le«« 754 -1 850 660 18 _ 

LMo BOB -4 866 830 18 — 
UnoH 382 -680 410 328 2.1 — 

Lultbn 106-50 -280224^) 103 — — 

UdlPI 183 -80 210 158 1J — 

MAN 420 -6 470 378 1.7 — 

MAN Pf 318 -780 367 295 12 — 
IBumm 405-148040050 387 18 

MannOV 770 — 1 822 720 _ — 

Mtetel 175 — 286 171 48 

MuoRflO 2815 -25 3817 2880 0<4 

PWA 253 -2 267 210 _ 

Phkornn 606 -3 530 504 3.8 

Potted 765 -24 BSD 698 08 

Pre«B 467 -490180 415 38 

mrE 4®3 +28052989 388 28 
RWEPI 37180 +130 424 329 32 
RRotnE 1.405.50 +550 1J20 IJEH) as 
~ “ 29880 -180 372 285 7J 

236 -1 767 204 3.4 


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+5 X400 2,415 7.7 
-6 4A60 3J76 48 
+60 17700 KffiJO 5J 
.... 0.321 4.400 5.6 
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-9 1.775 1810 20 
— G 3860 2J20 3J 
+20 BJOO VH50 28 
-4 1.100 75S 5.1 
+18 924 418 13.1 
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-12 1810 805 7.4 
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+80 6.490 4880 2J 
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— 2.105 1800 „ 
-45 4800 3806 28 

-2 355 102 _ 
-9 696 351 98 

-11 816 STO 6.0 

— 4.450 £805 38 
—30 2.165 1895 38 

+5 1.435 950 18 
+2 739 553 78 
+40 2A00 1825 162 
+25 1.710 1.150 48 
+15 3.120 2850 28 
-10 3860 2850 1.0 


I860 
1860 
784 
1810 
Z AwWO 530 
_ testa 418 
AUtfR 618 
taiyit* 818 
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Brortr 854 
CSX 3880 
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~ Carm 1,720 
3.120 
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470 

^ 398 

ChfiaB 672 

= agffi ^ 

— DuIkC 2870 
~ OvPtBi 1.100 

“SSffi. 

841 
767 
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566 
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2880 

550 
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-2D 1^20 1800 _ 
-6 737 4M _ 
-20 1810 991 DL5 
-40 1J80 976 _ 
-30 1870 091 _ 
-20 18901870 
-22 744 DU 14 
-201.700 MO — 
-a SM 402 1.7 

3 enn 

4JJ7D 08 

—10 1850 1.020 _ 
-ID 1850 I860 — 
-10 811 580 1.1 

— 1800 1^)40 .„ 
_ 620 *10 0.0 
-5 513 380 1 2 
-ID 679 550 _ 
-ID 

—20 1,680 I860 08 

-26 


_ ttnftrmt 52S 

__ Kuraho «a 

__ Kiaara 1.170 

Kuan 543 
~ hub 2£40 

~ K-COB 7,140 

~ KYtaSn <10 

^ « ” K ZjSl 

115 - ~ lUi 870 

2” — — LoTmCr 1.130 

££ — meda 1870 

— MAMIN 881 

— UbHQ zooo 

— Hreera 542 

H1MF MU 
Kmna 408 
MuU 1.760 
1J70 
1820 
1870 
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MbhMI 558 

755 
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749 

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838 
475 

5E3 

MBank Z490 


— MDCam 


— — MPa 


1830 

874 

1,190 

521 

753 

527 

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I860 

718 

091 

51D 

447 


1,490 

— Mbwiaa ijbso 

— MDBelt 307 
58 MtsJ 827 
_ IHEnS 334 
.. MBFbd 1,130 

— tCShtar 776 

— HBWnS 396 


879 

847 

412 

1890 

975 

1470 


— iOSak 

— UTToa 

— MTTVB 

— iowi 


1880 

2JW0 


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D'i 
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765 

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~ 3840 2410 _ — M*£b 

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♦17 718 438 _ 

— 1320 1J53® — 

-80 3500 2^80 
-20 1/410 1820 18 
—25 811 315 _ 

-5 402 337 1J 
-0 997 841 _ 

-30 1.440 1840 05. 

-11 788 571 18 

— 2870 2890 __ 

— 1J30 1880 __ 

— 2.7SO 2.430 ... 

-10 I860 1J10 — 

+3 ee* sat 14 
-1890 761 — 

-0 025 410 _ 

-7 560 397 ._ . 

—10 1JJ70 1,420 — — Mnidi 553 

— 1.490 I860 aS — BUIS 2580 
-10 2.060 1.700 ... 

+1D 1,610 1,400 — 

+21820 880 _ 

-451870 BOO — 

-22 910 551 — 

-3 570 415 — 

-201870 M3 ._ 

-20 2JXZ0 1,580 — 

-4 527 345 — 

+35 1.380 040 — 

—8 885 667 OJ) 

-10 1.120 951 ... 

+201,7101.440 — 

—10 1.670 1830 <L6 

4JBQ * m (lb 

+12 705 545 18 
+1 638 469 — 

-1018101850 — 

-2018601880 — 

+10 1.180 993 — 

-30 4840 3.600 — 

+14 7DB 521 DJ 
_ 2/450 1.320 — 

-17 603 445 — 

2.66)1 2.000 

+1 738 595 18 

-2 513 27S — 

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-10 1.180 841 — 

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-6 


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-0 70? 551 .... 

+4 573 425 1,7 

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-2 645 406 — 
-10 3800 2820 ... 
-20 7A20 5WO — 

— 555 37b 18 
-2 869 783 .... 

-11 1J50 905 ^ 
+20 2860 2.480 — 
+1 782 838 — 

-10 1830 788 — 
-30 1,340 B88 0 8 
+1 938 SIS — 
-30 28201.880 ... 
-11 500 428 — 

+6 900 780 1.8 
-2 483 321 — 
-10 1010 1/420 18 

— 1.860 1,700 

-anjeoijm _ 
-2D 182a 080 1.1 

-30 3^40 2.720 — 
_ 960 711 _ 
-1 64B 337 — 

-5 882 686 _ 
-3 732 557 — 
+4 792 682 0.7 
+30 1J40 1.400 09 
-3 983 480 _. 

— 5S3 388 ... 

-41 1830 790 OB 

+30 8,010 £383 _ 

— 1870 UW _ 

-10 724 520 — 

— . 1 J00 90S — 
.... 550 335 — 
-18 033 803 — 

— 666 425 .... 
+3 584 304 .... 

-11 U710 796 - 
30 1830 B42 - 
+3 792 487 _ 

— 774 500 

-6 560 407 _. 
+1 464 318 



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1/440 
740 
1830 
4J80 
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— Tanom 1.860 

Takas 618 
Z ■HoxSh 776 

_ TTnava 1,420 

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— Tafiei aso 

_. Tefln 551 

.. TaMM RSI 

— Tafekan 087 

_ TooGos 756 

_ Ttrttmn 400 

— TOBURW 646 

— TDbCp 945 

.. Tod 

_. Tdw 

— TohkS' 

_ Ttaffik 

_.. TVatCe 

_ Tnfcfco 

„ TUdoM 

.. _ rkyama 

+60 1.BE0 1.140 _ ._. TKyM 

+101,0101/50 .. _ TO*6 

— 680 455 — — TWtama 

-10 BBS G72 — _ ThSPte 

-14 400 301 „ TkOcn 

-20 1.420 1.100 OJ „ TVfiss 

-4 880 755 OJ TWope 

-a 468 378 .. ... frS0 

-5 453 337 .._ _ TjaR 

♦10 930 678 M. — ThuCw 

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+1 449 310 •_ 77 A TkuLnd 

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— 1890 1B40 1ft Z AUSTHALU (Sep 14 / AustS) 
-4 617 *50 .. . 

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♦1 1.110 906 _ — Amcor 
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-20 1 J10 1.180 _ „ Amfls 
-1 530 335 ._ ... AsWon 
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VMmRB 

Yonind 

YOaMRi 


730 

17800 

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1.190 

448 

510 

1.170 
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2880 

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477 

825 

2890 

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630 

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1870 

523 

18«0 

033 

620 

3.180 

2820 

443 

1,110 

424 

565 

614 

410 

371 

1890 

1.170 
1.130 

900 

IftIO 

1ft50 

1.190 

1850 

2.020 

1.150 

520 

782 

616 

1810 

880 

674 

943 

1800 

6E6 

657 


— AmayPr 9.83 

_ beaus rasa 

— QMVP 12.70 

.... arafeg 30.10 

!- o3S eare 

— Owes *50 

... GtacP 74 JO ml 

— Often 16.708) 

— DFarm 12J5 

— OW 4.78 

— Goko 37.70 

— IE8C ao.TSni 
. . HLungO 1480 

— ISari 5485a) 

— raabOi 1080 

— Her** 782 

— HenLM 47.50 

— HKQC MJ5 

— HKStlHt IlftSal 

— WAIT 36 no 
- WBs 25.85 

— KM 2050 

— HKRttA 2085X1 
_ HK Tel 1585 

— HOOdfl 785 

— HuKHtf 37 40 

— Hysan 2385 

— JaPnM 10.40 

— JMBB1 7485 

.. JShml 32.40 

— KM BUS 1680 

— MandOr 11 80 

— NaMiaid 27.15 

— ROM 37ft) 

— SHKPr 58 

— Snawta 13/und 

— ShetE 485 

— SnuQ 12/JO 

— SDiMP 484 

— SI* Co 

— SMraA 

— SwrtnsB 

— Tct*6r 

— Wturi 


WngOn 


63 JO -185 
1085 
1R w 
3380 
17.76 
11 69 
1185 


~ MALAYSIA (Sep 14 /MYm 


826 BID 09 
+4 1.100 705 08 

-6 B51 596 0 7 

-1 565 367 1.6 

-2 720 602 _ 

-ft 983 670 _ 

-S 907 533 _ 

._ 21/9017.200 _ 

+10 3830 2850 ,.. 

-20 1.420 1.110 _ 

-19 538 326 ... 

-6 597 415 — 

-20 1 JSO 1,170 0.7 

— S82 421 ._ 

— 1.720 1/450 ... 

♦10 2,020 1.310 _ 

-30 2800 1,570 _. 

-20 3840 2850 ... 

-90 3/480 2.740 __ 

+1 STO 470 _ 

-14 705 520 _. 

— 2.750 2800 _ 

- 30 2,140 1820 08 
-10 7B0 450 — 

-5 829 6357 — 

+1 730 BO _ 

+1018501.480 ... 

-20 18601.190 — 

3 788 576 ... 

-4 678 670 _ 

_. 18001820 _ 

-16 7B4 433 _ 

-7 905 600 — 

+2 414 286 
-10 2800 1880 _ 

-1 596 421 18 — 

-10 2.0(0 1/430 — 66.7 

—17 764 515 _ _ SHGAPOBE (Sep 14 / 

3.4602^0 Z Z 

-80 28501.760 _ 

-3 KT 330 ... 

— 1.350 866 — 

+1 506 330 __ 

-15 680 432 — 

+3 630 345 _ 

_. 432 285 — 

4 «H zn _ 

-50 1.600 835 — 

+ 101,330 1.1ED 18 
-10 1/430 930 — 

-8 969 820 — 

1.010 592 as 

-1230 7840 — 

— 1.610 1.350 _.. 

-101840 800 _ 

-10 1 850 1.110 — 

-10 2890 1850 08 

_ 1.350 1.120 — 


-.181580 BJ5 3.7 B2 
-40 50 28.00 21 2SL2 

-.1015.70 ID/40 3J _ 
-80 52 3050 16 _ 

-.40 57 37 38 37ft 

- 75 01 58 2.7 67.1 

-.10 14 6.15 _ — 

— 2780 IB. BO 1ft _ 

-.15 IB 10 1680 38 14ft 
+.15 1580 10 08 — 

-83 5.05 4.12 18 — 
+.10 45 2880 1ft _ 

-.76 131 80 1.8 _ 

-.152180 1120 4.0 418 

- 50 8050 47.76 IS 1 9ft 
-.10 13 JO 10 3ft 2.7 
-.10 680 5ft5 3ft ... 
+ 10 60 JO 32.00 AA „„ 
+ J5 24JS 13 2J22.0 

— 1580 1080 1.7 7ft 

-40 54 33.70 28 148 
-.10 3JJO SO JO 3ft _ 
-.70 31.751780 Oft — 
+.16 3025 10.40 3.4 232 
-ftS 17.78 12 38 _. 

-88 1080 5-90 62 
-JO 42.50 27.50 1ft _ 
-JO 3385 IBS 38 _. 
-.101110 780 08 _ 
—JO 84 JO 48.75 OJ -. 
-AO 38JO 24 ftO 0.4 _ 

-.10 25 1280 20.7 2SJ 

-.«& 12.60 920 0.4 _ 

-.40 42J0 2080 38 _ 

-.79 39 30 Oft 8BJ 

-1 77 41 JO 2ft S®.» 

— 1850 11 2ft 47ft 

+ 6.15 3.75 3.1 14.7 

-.10 15/40 985 &L4 39.4 
— ft2 LU 3S0IU _ 
- 780 3M 7J . 

SO IJ 21ft 

— 11 JO 8 2.3 17.1 

-1 3780 23 2J _ 

-JO 41 2580 2ft _.. 

__ 23.50 14.75 ZO _ 
-.ID 16.60 10.40 2.0 ... 

— 17.40 10.70 6.7 _ 


Boustd 5J5 
~ Ganna 243U 
H-Oud 17/40 
— MKBnk 18J0 
MUUn 4 40 
Z MuPurp 4ft0 


Z Sanaa 

_ Tetekm 


7J6 

2180 

14.10 


— ROM* 

GfflAs 


— taencp 


— S-praT 

— EM 

— TULm 

— UOB 


lOftnxs 

16-50 

288 

aie 

KM 

11.70 

1380x1 

6ft5u 

14/40 

16.20 

3-38 

388 

4.38 

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+/40 BftO 3J2 1ft 
+.40 25.75 1&76 1.1 
+.40 1780 12.60 OJ 
+.40 1980 13.1*1 1ft 
+ft2 6.30 3. IQ 1ft 
+82 685 288 0L3 
+.04 6ft5 382 1.1 
-.10 0.40 5ft0 2ft 
+.10 24.10 16 80 07 
-JO 2a 90 12-BO _ 


+.11 12701080 1ft 
_.. IB M 15 Oft 
.... 388 235 3-4 
_ 3-50 2.45 3J 
-85 6.65 4JE 5.4 
._ 12-60 B 1.7 

+.10 18.70 11 1/4 

+ft5 7ftO STB ao 
+J0 14.50 10.40 1ft 
+.10 17.10 13.10 1ft 
-.0? 3ft8 3.14 Oft 
+.10 4JB 3.16 3ft 
-.02 5.X 380 10 
-.10 1125 245 2ft 


59079 CanOccx 
30180 CanPac 
300 CanTt 
56585 CmiTrA 
17698 CanUtt 
400 Canute 
283264 Cnteu 
26448 CanTnp 
1350 CenGen 
2206 Caton 
2221 CmCap 
85500 CfnaOd 
17045 Comnra 
650 Cmpsa 
138&40 GereS 
8000 Ceoeai 

299455 COU 
16048 CimmX 
15900 DtalBiA 
67050 BbIbi 
27761 Dotsco • 
14956 DnmmT 
400799 Domtar 
12200 DuPrtA 
Z735 BtiUSA 

3600 Ensure 
39500 Echo B 
5100 Emco 
1I7B1B EtlNM 
2400 fPI 
47699 (Ml 
zsoo Fatal a 

412 tab 

15360 ft Kite 
2600 FteaiV 
256705 fedJnA 
96850 4SOB5H 
12075 Gtamli 

108870 EeacC 
3600 BndSAm 
45382 
36300 1. 

56801 UuHC 
1500 ISsStAi 
B5 HBMtSd 
16550 Heeaci 

41150 HomtoG 

8364 Itnv 
111468 Hm 01 
34B00 Horanm 

2308S KuBav 

42321 iPtEn 
130901 KIUSCO 
88818 rtvOI 

194429 inco 

3500 ntiter 

1000 HUSO 
74740 iMuMd 
G 599-hn)G 
211500 hncoh 
9880 Jmnrt 

300 KarrAd 

ISO Dane 
129 LauBK 
184503) Uftatt 
48850 UtawA 

97258 UUbhB 
349050 UJbtaa* 
99820 «tacknz 
29199 itokRa 
4440 MBS B 
32748 ktococh 
10574S MacmBI 
143250 MannaA 
840 MoLrFd * 

18231 Moral* 
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186 -1 167 165 
31 s * +'*S31te3Hi 
24>+ ♦<+ Kl’/ 24 


21 


21 16 


500 ScoOP 
1210 SNC 
£000 Sonora 
5X00 SHTBI 
115070 SUITA 
21442 SrnrtR 
7950 scant 
353165 Seaurmi 
1533 Seme 
13002 snuu 
1794770 Bhenfl 
196045 SMLJy 
343619 Souflan 
3105 SjwAe* 
44247 SWCO 
2ES3EO Irdrfi . 

1107*1 Ti*t*£ 

205172 TocftB 
1WO6O TdgBim 
64431 THUS 
460 Tern* 
424542 Thoran 
60101 4 TorOwn 
797304 TrecnP 
7BB43 TmsU 
566 Trtmac 
118600 Titeee 
2000 UAP* 
STS UCoip 
239000 UUDcm 
■OH) *11 ira 

9800 Iflcaro 
0200 W1CB 
29581 Dtetai 
1100 WCSBlGx 


13V -<1 SW'4 lOV 
X £20 X 
16 IS 10 


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10V 

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37) Z 


MONTREAL (Sep 14/Can SI 

4pm dose 


21 


455 -10 460 450 
24 S741* 23V 

W» S6V 9V 
S4V +1 S25 24V 
120 1X8120 

IS*** + V 51 BV 1B>* 

Bh aim av 
12 12 011 
385 +2*. 385 38» 

23 323 22V 

lav SIM 1BV 
»5 S8V 9V 
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17 -H»1M| 17 

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13 -)* £13 13 

2&1; 5261; 26V 

83 +VK3V 02 

b so. r* 

0% CT.'m 6*+ 

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10V S1DV 10V 
TBS 290 287 
20V +VS20V X 
13J. +V SUV 12V 
15V S15V 15 
X 37 34 
M V -V £17 187» 

5? £5lj 5*1 

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Mil sown Am* (Sep 14 /Hand) 

14*1 +VSI«'| 13V 

iW. -v nh lsv 

71V -V Jiv ABSA 10X 

29 $29 ZfPm 4FQ 29 

2&u 4-la ?&{ Aflm I 121 

3S« SSoi 245 

SJ 1 AngAm 248 

40V +V Mj) 33J AmgcM 487 

U + i* f§5 ArignOJ 128 

5 V — *a S5V 6V BanOM 31 JO 

SUV 14 Bean* 29 

516 15V But tel s? 

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14V +V SI4V 1<V 
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13V SI 3* 13* 

3C 532 31'j 
26 SSV 24% 
SV ssV <SV 
9V -*)»') BV 
" ' S17V 17V 


>*iI3 '■ _'* 
62s 21V 
53:17 SPr 


127386 BmbrnB 
17300 BtoChP 
1300 Ceniffiffl 
64480 Cscnde 
BOO Mlmre 
1200 BTC B 
nire jemnu 
24600 MtRJCh 
187950 NtiBkC 
2040 UbcnrA 
8250 imt+s 
38400 item 


:W 


20V 


13-n -V S1*V in 
17V -V SIB 17V 
77 a SB 7V 
15V SUV 1JV 
9V SSV 9 
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11V +V SI IV 111* 
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644370 UotenA 

138799 Moan 

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-9 564 350 1.1 


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-1 1.030 
_. 1.120 
-5 eog 
-6 745 
-2 1.160 
-X 1.100 
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-3 745 


727 Oft 51ft CANADA 
734 

- TORONTO (Sep 14/ Can S) 
4 pm dose 


760 
BM 
528 _ 
880 _ 
921 _ 
442 .. 
48B .. 


— 389 303 - 
-0 534 345 .... 

._. 27 TOO 18 JDS Oft 


KufO 2JJ40 

HoyoCp 2JOO 

If* 460 

BurnC Ml 

BtagTa 1.010 

hm ljnc 

no8k 3.020 

teem «i9 

team 1,760 

tHG 405 

htmM 490 

llodw 699 

IBFtB 777 

Rorek 5J10 

MIME 575 

bum tft3> 





. _ 1J0D 

cue 7£5 
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__ Cfc=ft3i !57 
_ 1C93 

Cmrai 1.703 

tt*U3= £37 

_ 4.733 

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6C9 

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667 621 _ 
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-0 934 727 _ 
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-5 397 3® ... 
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-30 ’.715 755 - 
-2 372 21*4 _. 
_i,«3 1/333 .. 

-2D 2.573 i.73a or 

-5 663 655 . . 
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9.11 
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+.06 610 166 IJ _ 

+.11 11.90 7ft5 17 32ft 

+ 66 152 2.60 25 ... 

♦ft? 5.72 175 5.1 „ 

+ .04 4.79 3-80 4.7 ... 

_ 2J6 1ft2 5ft 5ft 

+862056 16 1.1 31ft 

+.04 3.58 152 4.0 7.1 

+ 33 4.62 US 51 _ 

*m tie 0.64 ... -. 


56S725 AMD 
9210 AgnEag 
1164090 AfiCtta 
37187 AUK 
2800 AhNlG* 
405750 AknAI 
GS482T AmBan 
6872 AtCDOi 
312266 Amur 
11179 BCSUflA 
21826 BCToi 
517438 BCE > 
6557 BCE Mn 
3200 RGB A 
364 Bhnak 
1X171 BkMont 
160691 BMfnvS 
48027 BtniCx 
328750 Bmnnfl 


19V Vv Sill? ^ 

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21V +VS21V 21 
15V S15V 1SV 
35V -VS35V35V 
3ZV -*/ 535*4 32V 
13V — V 13V 



90S75 Hawtxta 

117110 Noma A 
14260 NnateF 
102234 NmdaU 
21379 NorcnE 
67983 NOiTalx 
1758530 Nora 

100 Noumea 
5000 UunacE 
2000 0na* 
12300 OehnwA 
15228 PtanM) 
158940 POCOP 
556246 PWA 
91 DO Pa^nA 
1080 ParCU** 
9580 Pliasua 
74834 PMCan 
21100 PMEn 
535727 PDomg 
53S42B pnwCn 
28S2 POWifn 
4290 W*yrkY 

100 nwnf 

600 Rotwim 

112360 ntgoi 

536 BeedSt 
151826 Hen En 
74500 Renap 
1B32&5 mgel 
12138 RtaAIg 
203930 RngCmB 
27301 B ROyfltC 
17528 Rnyflak 


»V BV KodG 
a SSV 5 LfcUa 
22 S22 215 MUnak 

25V -V K5V 24V NeJSr 
IX +5 IX 130 PateW 
10 *10 9V teitnGp 

43V +-V SMV 43V RanSn 
470 *10 470 <60 Ftais&j 
IZV +V SirV 12V HmerOi 



5MV 14V TtgOat 
19V Tn^tul 
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410 


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-25 57 28.50 ._ 

+ 25 31 20.75 19 

-25 58 42 5 9 

+.05 4 30 1S5 l.B 
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7025 +1.76 7325 48 24 

132S +50 1325 725 3ft 
33.50 +JO 34 JO 22J0 10 
37 . . 42 30 4 2 

22 -25 23 JO 21 JO 3J 

78.75 +25 80 53.75 5.1 

14JO +.1014 95 1911)1 
130x1 +2 1X87 50 IJ 

37 ._ 37 JO 2326 _ 

XX +1 JO 28.75 18.75 5.7 
33.50 - XX 16 1ft 

4.65 +ft3 5 220 IJ 
101U +2 104 56 1ft 

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77 +1 84 JO 63-50 3J 

70 50 +JO 73 75 41 2_b 

93X1 +25 100 75 1ft 

17 +25 2? 15 JU 

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55-50 +ftO 58J0 37.60 5.0 
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121 +2 IX 72 1ft 

11 — . 1150 8 70 — 

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57X1 -2 68 X JO 1.1 

148 +3 164 102 1ft 

41.76 _ 56 41.50 1.7 

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476 +S 498 3S9 2ft 
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218 +2 222 151 2ft 

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-02 15 os i2fto < 3 3+5 ■ TOKYO - MOST ACTIVE STOCKS: Wednesday. September 14. 1994 


BnrJh 

34id 

-01 5 03 3-26 SO 162 


Stocks 

Closing 

Change 


Stocks 

Closing 

Change 





Traded 

Prices 

on day 


Traded 

Prices 

on day 

.... Ca3«u 

£70 

- 05 3 til 2.55 3 » 

Toyota Motor 

12.0m 

2,020 

-60 

M'bisln Heavy . _ 

35m 

753 

-16 




Nippon Steed ..... ... 

6.80m 

377 


S'iomo Bank 

2.9m 

1.370 

+10 

. C rtcM- 

4 32 

-0! 5 71 39? 4 9 _ 

Tsumora & Co 

6.2m 

1.050 

-120 

Nissen TAotor 

2.7m 

785 

-8 

. CnraKO 

5G7 

- 6ia JJO 1 1 ... 

Chiba Bank 

5.2m 

B72 

-9 

NKK Corp - — 

2.7m 

279 


- Cncsrt 

1 11 

. 1 £2 0.76 Oft Z 

Kawasaki Steel 

4.3m 

428 


Magara Cons) 

2.4m 

905 

-65 


Dam Linn 

_ Earn* 

: S"* 5 

_ Fart* 

.. ... - Fact* 

607 ... .. Four. 
533 . GnPrir 

575 ... .. OKMin 


UJ6 
4.50 
1 15 

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2.76 
343 
I 13 
IX 
£.34 


-T. 
- 14 
-01 
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+ 02 
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-.01 


-•61,110 055 1 3 - GKKotfl 1-30*3 

+SD1240 999 , Grtnanf 1J4 

£90 1.460 __ HrtSe 


-20 ... . ... 

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—20 1 530 1050 14 — K3Au> 
♦3 744 653 _ . wean 


131 
155 
1.75 
10.58 
4 06 


Oft* 035 Sft 
6DZ 435 53 22ft 
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1.4U 065 .. 1ft 
345 144 1? ... 
£62 2JD _ _ 

1.47 0 95 5 3 .. 
££0 126 7.1 lift 
♦ IE 360 125 68 _ 

-04 1 76 1 10 £3 £4 
+ 01 1.73 124 02 ._ 
+ 01 2.86 £04 7.3 7ft 
-.05 2ft2 1 12 29 
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_ 570 430 
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-10 13101.140 _ 
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-3 412 271 _ 


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£815 

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<34 

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433 „ 


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3 40 

£45 52 ... 

622 

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2 55 1 7 74ft 

£733 

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780 

+ 081004 

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451 

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390 1 1 


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483 

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705 _ 


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636 

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4J2D 

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8J8 

— 

lOJfO 

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1JZ3 

-S3 1.770 1,083 


OHMt 

4.3E- 

♦ ftfl 

GJ8 

3.94 3ft .._ 

633 

-3 650 

447 


MiralPot 

£32 

-.04 

=.79 

130 £6 ... 

1.323 

-39 1ft4O1£30 .... 


r«HPBk 

£91 

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4.15 

£05 3J=6ft 

625 

-ID 70« 

515 .... 



4.12 

+xa 

5J2 

397 5J ... 

£560 

_ £660 £110 04 


Pancon 

1.88 


£15 

136 — 


1.430 -180 2.150 IftIO ... 
1.930 -10 2J70 1JM . 

950 +5 IftOO 866 _ 

-15 609 415 _. 


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210 

an 

3.76 

610 


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FINANCIAL TIMES THURSDAY SEPTEMBER 15 1994 


4Dmdos9$«i>imt*rl* 


NEW YORK 


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spm dess September 74 


NYSE COMPOSITE PRICES 


NASDAQ NATIONAL MARKET 


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20% 17% Stars Pbc 1.12 5.9 11 127 10% ID 19 ft 


10% 6% USUFEta 080 94 0 55 8% B% 8% 
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S»chA 095 28 16 12 33% 33% 33% ft 

SXBEqU 1.17 IB 808 30% 30% 30% ft 

5n*nsF0 052 22 15 282 23% 23 23% ft 


28 2fl%Smictar.l 050 £2 18 34 23% 23 23 

44% 34% SnpOnl 1 oe 10 17 747 36% 35% 36 ft 

21% 17% Snider a * 026 1.4 23 383 1B% 18% 18% -% 

M 23% SOta*® 30 2438 29 2ft ft 

34% 28Sanu 1JB 3X 18 3622 32% 31% 32% ■% 

63% 48% Sony 0.47 06134 in 5ft 58% 59% -% 

19% 11%Satnetqf9x 024 12 83 305 12% 12% 12% 

46% 40 Saute Dip 3.60 66 13 42 41% 41% ft 

45% 32 teACBWl £50 72 2 32 (02 32 

24 17% StfUozM X 1.44 7.8 11 32 18% 18% 18% 

30 19%S8xtan OB 24100 228 21% 21% 21% 


20 2ft THOU 088 17 8 328 25% ZS 25% ft 

68 5B%nAdU 224 16 21 350 83 62% 62% ft 

18% 13% Thonaetad 040 26 30 48 15% 14% 15% ft 

43 29% Thomson M 240 5.7 17 51 42 41% 42 

25 19% IMm 040 1.7 37 fig 23% 23% 23% 

38% 2B% TXtaiy x 028 07 B3 488 37% 38% S7% +H 

44% 34 TDDWn 036 1.0 73 6426 36% 38 36»« -% 

37% 28%1mMr 1.08 14 25 2390 31% 31% 31% 

39% 31% TMtal IB 28641 5» 38% 38% 3ft 
8 2% TBanCip 1 SO 5% 5% 5% -% 

13% 1 Titan PI 1.00 SJ9 id 11% 11% 11% 

4% 4 Todd Srp 14 42 4% 4% 4% 

15% ft TofihafenGo OB 05882 5B 0% 5% 0% -% 

27% 25T0taE281 281 107 4 »% 28% 26% 

19% 11% To* Bra 13 234 iz% 12 12 -% 

75 58% Itoa&ds H 044 0.7 18 12 62% 82% 62% •% 

4ft 36% Dctavk 1.12 £7 11 1132 41% 4ft 41% 

aft 20% Tore Carp 048 1.9 18 181 25% 25% 25% -% 

35 27% Tosco x 084 £2 11 935 28% 26% 28% -.11 

31% Ifttnusya 018 06 SI 134 032% 32 32% ft 

32% TysflUs 24 4566 38% 38% 38% ft 


2ft 16% NHS M 
3?% 26% WPL HuWn 
20% ISWahonlK 
35% 30% MXnb 
16% i2%WKtanout 


036 1.0 73 6426 36 

1.08 14 25 2390 31' 

IB 286(1 550 36 

7 50 5 

1.00 B>9 10 11 

14 42 4 


GS 36% 36 36% 

190 31% 31% 31% 
ISO 38% 38% 38% 
50 5% 5% 5% 

10 11% 11% 11% 

42 4% 4% 4% 


14 42 4% 4% 4% 

OB 05862 56 8% ft 6% -% 

181 107 4 28% 26% 26% 

13 234 12% 12 12 -% 

044 0.7 18 12 82% 62% 62% •% 

1.12 2.7 11 1132 41% 4ft 41% 

048 1.9 18 181 25% 25% 25% -% 

084 U 11 935 2ft 28% 28% —.11 

018 06 51 134 032% 32 32% ft 

24 4586 36% 38% 38% ft 


26 2i%1hmm!nc 1.92 08 9 11 21% 021% 21 1 


30 19%S8xtan OB 24100 238 21% 21% 21% 

22 16SCMH ■ IB 08 0 58 17% 17% 17% ft 

22 1B%SHfeaCD OB IB 9 200 71% 21 21% ft 

23 17%smnCo 1.18 07 5 2655 17% 17% 17% 

33% 28% SmMGE IB 6.1 10 S Z7 28% 2ft 

38% 26% SKIM 1.78 03 SB BIS 33% 3ft 33% ft 

39 23% SHI* (UM 02 21 9336 23% d22% 21 -% 

19% ISSniIrtWin 082 4 7 20 35 17% 17% 17% -% 

1ft 15% SonOiWEnflv 024 15 297 19% 18 18% -% 

30% 23% SouBtanPS* 2B 05 10 163 2ft 25% 26% 

12% 8% Span Fund 048 4.7 208 ft 9% 9% -% 

7% ftSpartwCp 7 7 5 5 5 

18% 14% Sphered 012 08 BB 15% 15% 15% 

39% 29% SpflnflX IB 13 13 170 3ft 36% 36% -% 

«J% 32% SpM a IB £5 28 3248 39% 38% 39% ft 

IB 13% SPX 040 2.4 21 72 17% 17 17 -% 

19% 13% S« Conn 040 £6 7 33 15% 15% 15% •% 

26% 14% Std Motor 032 1.8 13 11 18% 18% 18% ■% 


19% 14% Sphered 012 08 BB 15% 15% 15% 
39% 29% Spring x IB 13 13 170 3ft 36% 36% 

48% 32% SpM a IB £5 28 3248 39% 38% 39% 

IB 13% SPX 040 £4 21 72 17% 17 17 

19% 13% SU Conn 040 £6 7 33 15% 15% 15% 

26% 14% SU Meter 032 1J 13 11 18% 18% 18% 

12% 7%SM%dX 012 1.4145 100 8% 8% 8% 
38% 28% StdPril OBB 2J 14 96 29% 29% 29% 


t 4a~« Tmun 
(ftnmaSan 
14 Trace 
12% Transept R 
10% Transtech 
43 31 lira* 
18% 13% Tredegar t 
37% 33TrtCutf2_5 
26% 12% Triarc 
94% 50%ntxm 
24% 21% mean 
47% 30% TrMy 
40 3l%Tman 
37 24% TrBan 
4% 2% Tuoexi B 
7% 4% TUIaxOp 
14% 8% Dsltahln 
28% 8% TaSi Cant 
34% 18% HrtiOlB 
55% 42% TyeoL 
10 6% Tyco T 
6% 4% Tyler 


£00 3J> 8 742 51% 50% Sift -% 

038 07 13 62 51% 50% 90% -% 

0.60 39 11 47t« 16% 15 15% ft 

5 3 14% 14% 14% 

OB £0 10 3G 12% 12% 12% 4% 

060 1.7 8 2041 35% 34% 35% ft 

024 1 J 18 425 18% 18% 18% 

250 7 J Z100 33% 33% 33% ft 

10 IBB 18% 16% 18% ft 

1.04 U 21 1941 9>% 54% 55 -% 

078 SJ 188 23 22% 22% -% 

OB £1 18 3132 33% 33 33 ft 

OB 15 96 86 36% 36% 36% ft 

0.10 03128 «□ 31% 31% 31% ft 

1 1B 4462 3% 3% 3% ft 

020 4-2237 51 4% 4% 4% ft 

012 15 53 7% 7% 7% ft 

054 8.7 1 2065 9% 9 9% ft 

070 32 20 2 22 22 22 +% 

040 09 27 2471 46% 46% 46% ft 

010 15 3 375 7% 7% 7% ft 

450 32 4% 04% 4% ft 


35% 30% Wnirnia 
29% Z!%WBMt 
5% 2% WtonerkB 
85% mvtadni 
18% 14% HBhEnergy 
42% 36% warns. 
25% 20%Waanm 
264221% WadiPB 
36% 10% WBkJn 
3% 1% Woman tad 

15% 13% Webb(Da8 
40% 36% Watwarton 
11 5%WetraxiS 
28 24% WBIaMk 
11% 7%WeHan 
33% 17% MMHubo 
160% 127% VMfaF 
18% 14% Wandye 


38% 26% Shlhd OBB 23 14 96 29% 29% 29% ft 

30% 24% Starter 0 56 £1 16 21 27% 28% 27% ft 

37 31% Stratton IB 3J> 21 ZlOO 35% 35% 35% 

«7 a 36% SteMIhx 1.40 3.4 2D 188 41% 41% 41% 

43% 37%Staianc 1.40 12 229 43% 43% 43% +% 

25% 20% Standt x 068 30 20 12 22% 22% 22% 

11% lOSUPlM 084 84 61 SO dlO 10 

29% 24% SUFwUO 004 £3 7 85 38% 28% 26% ft 

7% abStBd^crp* 020 29 6 24 7 6% 7 ♦% 

13% ftStatoChn 006 061B155Bu13% 13% 13% ft 
14% 0% see 124 12% 12% 12% ft 


SSStadgSMe 

BSMBn 


30 1238 31% 31% 31% 
012 1.9 3 107 $% 6% B% 


33% 37% StaoaHMl 080 19 26 217 32% 3 2 32 . 

20% 9% SOM CDH 071 35 4 2115 20% 197g 20 ft 

27% 10% SkpSnp 22 1B2 27% 26% 26% -1% 

16% 13% SttEQU x 084 5616 120 15 14% 14% t% 

41% 25 ShTc* 12 3272 35% 34% 35% ft 

38%22%Snba 53 116 37% 37 37% •% 

18% irStddaRHo 036 25 121030 15% 15% 15% -% 
33% 23% Sum Row IB 44 15 274 27% 27 27% ft 

4% 2SuB*0m 030156 0 2 2 £ 2 

11 10% Son Oa A 110105 7 51 18% 10% 10% 

6% 4Sun{*B 024 44 5 214 5% 53? 5% 


32 ft 
20 ft 
26% -1% 


11 10%SraOaA - .. - _ 

6% 4 Sun ObB 024 44 5 214 5% 5 s ? 5% 

7% 4% Sun Energy 028 66 42 61 4% 04% 4% 


024 44 5 214 


#% 33%Sunanr <140 06 

50% 41 Srae* 120 £5 

11% B SuBdenDfl 1 19 11 G 

3% 1%ScnAM 
51% Cftirta 1.28 2.6 


n« as 15 .-W 4ft 44% 44% 
120 £5 IB 307 48% 47% 43 

1 19118 35 10% 18% 10% 

»9b 2% 2% 2% 
1.28 26 13 2S1 50% 0% S3% 


51% «3'jSrta 1.28 2.6 13 251 SO* 4a, N't 

14% 10% Super Fond 036 3 0 13 88 12 11% 12 ft 

46% 28»«a>la 018 Ofi 20 6W 30»; 30»p 30% 

40%27%Snwi 0 94 33 11 37l 287 S 28% 26*j 

20 11 71 SregCanr 016 00 21 1160 18 17% 18 .% 

23ft wstatewr aaa 04 ar 3D% 20% 20% ft 

31% 15% SHIM Tec 59 217 30% 29% 29% ft 

10% 7% StaDCDro 0 ZD £S 10 1* 0 8 8 4% 

tn% 16% SynoNBFn 045 £4 17 S3 19% 19 19% 

24 12% Sim Id* 43 12 392 U24 23% 24 ft 

?J% 21% S*m» D X 1 * 22 H45 26% 25% 28% ft 


(re $ TC8* EnhT OB 35 23 IS 5% 5% 5% 

41% 2S% TCF Hone 1.00 £4 13 148 *2 41% 4? ft 

9% 8% TCW Cm* 5 084 92 186 9% 9% 9% ft 

41% 3t% TDK Corp A 047 11 45 18 44% 44% 44% ft 

2% 1% TlSMqe 008 3J 3 S4 2% 2 2% ft 

29% 16% TJX 0 56 £5 14 1870 23% 22% 22% 4% 

18% 13% UPEnani OBO 57 13 363 14 13% 14 *% 

77% 61 1TW £00 £7 21 964 73% 72% 73 ■.% 

3l%a%Ta»BaFd 433 29% 29% 29% 


29% 23% UJBfln 
B 4% URS 
51% 45% USRfil 4.1 
36 17ft use 
31% 23% UST 
51% 48% OSXCumPI 
150 S5% IML 
10% 3% IMCHm 
24% 17% US Corp 
11% 6% IMCM 
24 21% Uteri! 

27 20% UMkx: 
17% 11%(MMx 
74% 58% Under 
UO%10D%[MN 
58% 42% UnCarap 
34%£1%UnCM 
13% 8% (UanCop 
54% 43% Un0 3.50 
67 56Ufi4S0 
39% 30% Una* a 
67% 55%UftK» 
ali ESftlManPM 
2? 16% IWonlam 
2% % IMFn 

I6>z B% Unisys 
3% 7% tMCarp 
41% 29% UWteei 
15 r j 12% IRfflanAy 
22% 17% IKdOoraM 
54% 38A UCMPCra 
40 30% Uahnn 
6% 4%umtaua 
13% 10% DtSigrtoFna 

% liUM’aKCM 
15% 5%USMr 
ltl B 11% USFSC 
23% IB% USHBbi 
29% 14USHMM 
41% 34% USLCp 
24 llVUSShM 
32% 15% USSwg 
46% 3&%U5HWI 
72 5SIM1K 
14% 12 T UBMW 
17% 13% Uodraffl 
34% 29%IM*Fead( 
16 15% IMrWix 
% %UdatML 
12% 9% Uaa Op 
76% 17% Itafenl Dp 
30% 34%urood 
SS 43UBUM Dwp 
37% 25% W#m 
24 15 %USlE0 


. - u - 

1.04 16 20 905 28% 27% 28% 
34 15 6% 6% 6% 

4.10 06 10 47% 47% 47% 

6 1239 23% 23% 23% 

1.12 37 17 1SB1 36% 29% 30% 
390 79 MOO 40% 49% 49l 2 
B» 739 97% 96% 97% 
IB 402 2 67 3% 3% 3% 

138 7.7 19 1291 16% 17% 17% 
2 292 5% 5% 5% 

IN 7.4 ni754 21% d21% 21% 

0.40 1 7 IS 928 24% 24 24% 

010 07 14 46 13% 13% 13% 
£80 43) 10 IS 70% 70 70 

■454 4 0 16 4Q0 114 113% 113% 
1 56 3 1 70 808 50% 49% 50% 
076 £2 33 4843 34% 33% 33% 
19 II 12% 12 12% 

ISO 7 7 MOO 45% 45% *5% 
450 75 3 60 59 60 

238 7£11 7Q4 33% 32% 33 

IT? 31 16 I960 56% 56 56% 

092 37 9 388 25% 24% S 
020 10 55 238 19% 19% 19% 
0 35 A ,« A 
£77261 7 7724 10% 10% 10% 
a M 113% 3% 3% 

0P6 ?S 20 m 33% 37% 37"j 
0J6 50 67 203 13% 13% 13% 
020 11 10 » 18% 18% 1B% 
003 01 21 4301 53% 52% 53% 
376 9 1 9 257 30% <£» 30% 
03 50 5 13 5% 5% 5% 

005 04 496 11% 11% 11% 

1? .100 % % % 

012 £0 0 3121 6 5-a 6 

OB 1 5 14 594 13% 13% 13% 
38 122 21% 20% 21 

2 291 16% 18 18 

1 34 35 8 96 35%d34% 35% 
032 14 65 656 23% 22% 22% 
OB 03 B 1956 26% 2ft 26% 
£14 5.4 35 3083 39% 38% 39% 
£00 31 18 3820 64% 63% 64% 
092 66 13 B 13% 13% 13% 
M 81 17% 17% 17% 
0® 30 13 65 30% 30% 30% 
1 BE 18 11 314 17 16% 17 

0 85 015 0% % 

030 £3 40 n M3 T2% 13 

096 4.7 11 13 20% 20% 20% 

080 £9 22 2690 28% 27% 28 

006 1.9 12 768 49% 49% 4S% 

148 41 15 1843 36 35% 35% 

024 1.1 7 435 21 20% M% 


25% 21% Wastes 
18% 14% WadcsEx 
50 39% WA83B 
17% 9% WatfMm 
20% 8% VM Dig 
35% IBWetaCna 
24% 18% Htetn lfe« 
34% aft Warn Ru 
15% 10% HhtgS 
6% 4% WaauCol 
20% 13% Wear Masts 
20ft 15% WasipK 
a 29% Waned 
51% 3ft W*ihsr 
21% 15% iMMta&nr 
73% 4&%WhU)d 
1ft 10%WMtaad 
18 14% WMmnx 
18% iftwitnatar 
32% 25% ffleof me 
8% 5%Wten86 
33% 22% MAhns 
7% &J05lim*a 
12 B%mulMni 
58% 42% Wnsdxx 
13% 8% WtaHtagn 
77% 73% Wfcc&i 
33% 27 WgcPdPSv 

18% ISWlsnO 
35 26% witxi Cera a 
30% 22% MKT 
27ft 18ft WohtalM 
26% 12% Weotath 
iBft Mft WortoWda 
7% 3%warttxxp 
53%38ftU«ey 
20% 16% Wyte labor a 
22 % 18% Wynns hr 


18 747 1ft 
102 60 13 51 27% 

B 594 19% 

m u iz aa 33% 

OX 7.3529 z 15% 
47 187 4% 
(LB I.B 18 1286 37% 
064 £0 15 402 31% 
017 07 24 40548 25% 
004 10 10 263 4% 

£44 3.0 37 4949 B0% 
100 08 5 150 14% 
£22 OO 13 n 36% 
108 40 B 58 22% 
400 1.8 17 16 236 

048 1.4 24 65 343, 

008 4.0 6 53 2 

020 12 15 33 1ft 
228 02 X 407 36% 
064 6.4 14 2139 10 

On 30 15 183 25% 
040 £2 14 96 10% 

024 07 a 16021(33% 
400 £8 19 885154ft 
024 10 19 2142 15ft 
048 Id 17 44 24% 

088 64 11 64 16% 

167 43ft 
18 9470 U17% 
83 BOM 16 
020 09 IB 433 22% 
023 09158 » u3S 

108 70 9 330 27% 
020 15 18 5172 13% 
032 01 0 81 ft 

a T65 18% 
058 36 5 14 1ft 

1.10 £0 46 1689 3ft 
1£0 £7 17 3044 44% 

019 OB 19 1445 16% 
1.22 £3 18 2073 53% 

17 42 16% 

03* £0 17 7a 17 

2 Z7 U1B% 
150 6.4 16 52 29% 

010 1.4 15 165 7% 
084 £7 14 4278 31ft 
006 09 15 17 7 

020 Id 18 1235- 11% 
156 31 15 375 50% 

18 2039 8% 

141 SO 13 435 Mft 
1.82 87 10 100 27% 
040 £4152 19 1G% 

1 12 38 64 IB 30 
050 £1 X 8333 aft 
016 06 16 145 26% 
050 3.4 4 3707 18 

010 06 44 15% 

B 678 7% 
048 Id 27 751 40% 
028 1.5 20 IX 19 
044 20 13 97 21ft 


19% 1ft 
27% Z7% 
19ft 19% 
33% 33ft 

’§ i 

37ft 37% 

31ft 31% 

25% 2S% 

a% 4 ^ 

a a 
22 22 % 
234 235 

a** 

16ft 16ft 

36ft X% 

9 % 10 

S 25% 

1ft 1ft 
32% B 
152ft 154 

15% 15% 
24ft 24% 
16ft 16% 


15 15% 
22ft a% 
24% a 
26% 27 

13% 13% 
5ft 5% 
18 18ft 
16% 18% 
X% 36% 
44 44% 

18 18% 
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13ft 18ft 
29% a% 
7ft 7ft 
30% 31 

7 7 

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23% 23% 
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16% 167* 

is a 

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7 7 

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-X-Y-Z- 


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S4ft 50Xenn4 125 412 '* 3 

53% 40XVaDxp 056 11 a 630 

attataeEw* 1£2 57 12 61 

42ft 33% Ink Mx 016 04 29 210 

ft Ida 014 21 561 

13ft 7 me s icy. 

27% 2d% 2m» Kffl 1.33 AO £ IE 

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13"a lifting FJ12 108 92 -.95 

10% B% Znrag 100 OM 97 6 & 


70S 103ft 131% 
54ft 54ft 54ft 
53ft 4i% 49% 
21ft 21% 21ft 

41ft 43ft <-.% 

■S ,s & 

24% 24% 24% 

7ft 7ft 7ft 
17ft 12ft 13 
■S’: lift '5ft 

nftr.’ft (’ft 
rft 3-i 7ft 


AMEX COMPOSITE PRICES 


Am mgn 

AftnhK 

/Uttatal 

Amta 1% 

MnA> 

Apvtaht 

AntExpt 

Anwst-AmA 

ASH hr. 

AsiratPcti 

Atari 

A&rXUB 
Aadwn A 

Bid LVaan 

DsdosiMli 

BahMnTA 

Bairn 

HAIwK 

Brad 

Brio Man 

lUiRaa A 
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fiOWVABey 

BAnnur 
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2 11 
3 12 

104 14 £ 

Ultn 44 
005 3 an 
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M 102 
072 22 113 
27 91 
7 374 
0 10 
7 3211 


High low Owe ( 

14% 14% 14% 
1% 1% 1% 
S’e 5ra 5% 
49 49 49 

20% X% 20% 
9ft 9% 0% 

4 $ '4 

2% 2% 2*4 

3,‘i 3 3 

A 51 Z 5% 
% aj* % 

9% 8ft 0% 


Stock Dhr. E MO* Ugh Law Clone Qq 
Condncg 0301775 29 DIB 17% 17% ♦% 

Canpiflac 0 819 % ft % •% 

CDQCd R)A 5 22 9% 9% 9ft 


Cenpmnc 0 819 % ft % 

CODCdRlA S 22 9% 9ft 9ft 

CrasaATA OM5M 32 16% 16ft 16% 

CnwnCA an 43 4 19 19 19 

CrawnCB 040 15 10 17% 17% 17% 

erase 053 84 9 19% 19% 19% 

QtsfcxnodM 21 56 3|; 3% 3U 


41 2!i 2% 212 
2 25% 25% 25% 
58 5% 5ft 5% 
97 20% 19% ™ 

146 13A 13 ISA 

SO U2ft 2. 2ft 

87 24 ft 24% 24% 
42ft «3% 

nw 11% n% 11% 
its anUtni^ ibJJ 

45 14ft 14% 14ft 


Ca&rcp ’ „Jb ..J 

c*«m 0£0 14 ; 23% 23% 23% 

can Hue ora 20 :ioo lift n% ii% 

Chmnrca OOi 5 292 2ft ?1« *ij 

Ctombtn 5 21 2j; 2ft 2ii 

CtaintMe » 83 36 36je - 

£Julr» 2671113 5% 5 5% *Jn 

CrcPh HO* 33 845 12% 12ft «% *% 

C:S) r i» ?P1 10 5^ 5 1 * 5J * 


C«sc 053 84 9 19% 19% 19% 

QtstamodM 21 56 3|; 3% 3{£ +i% 

EX Ms 12 160 1 1 -ic 

Deak 28 31 17% 17ft 17ft -% 

Ducnmmun 8 12 41, 4% 4% 

Di«ta> n«8 3 *7 Bra 8% Bft 

ErnnCs 046 13 4 13% 13% 13% 

Eadgroup 1.72875 42 20% 20ft 20% 

MlO Bay 007420 2191 13 12% 12% -% 

EndEnA 030 B 2 10% 10% 10% -ft 

Eifcwnx 5 28 7ft 7% 7ft , 

EW 17 2S5 36% 36 36ft -ft 

EnofSu 386 15^ 16% 15% +% 

Epiupe 13 484 21ft 20% 20% +ft 

M)M> OG*H 5 31%«B1% 31% 

FduA 4OO16nO0 78 76 JJB •% 

FsoyBnc 020 14 2 11% 11% 31% *ft 

RuVeiJl 056 75 36 » + Jb 

ForKJ La 33 426 46% 46% 46% *ft 

Frequency 4 4 3% 3% 3 ? a 

roan 030 5 36 18% dlB 18% +% 
GtadFdft 0 72 13 » £1% 21% 21ft -ft 

GUHItr 0 70 X 56 16% 16% 16% *ft 

amiBise i 7 ft oft ft , 

er **" ,Bn '?£ 7l 2 Ih *1? 

Gulf Can Q 34 12 70 4 3S 3% -ft 

KDiim 27 364 4J1 4ft 4% 


Stock Hr. E 106c Mgh LawCtee Ong 

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Health Ch 4 18 3ft 3ft 3ft «ft 

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, Hex* 016 44 10 10% 10ft 10ft -% 
HMUntanA 11 595 8ft 5ft 8ft -eft 


EH Corp 1 845 5% 5% 6% 

I teticnCpx 012 29 45 11% lift 11% 

M. Coins 33550 3A 3ft 3/ 

I kWinagi 83 215 17% 16ft 1g 
tax OOG 204897 21 20ft 2tfj 


Stock 

Osten 

jygssuaS 

Pctb* 

PrtH&Px 

Pnd LD x 

PBwsyAx 

P*y6em 

PMC 

PrasdtaA 


Pt Sto 
Oh. E 1006 
024453 630 
040 10 422 
0E3 16 6 

1£4 9 2 

0.24 16 397 
050 16 el DO 
012 26 126 
092 16 50 

DIO 0 50 


Jan Bel 4 204 6% 6>? 6ft 

Keama 21 2 14 14 14 

»»WkCP 20 2 4ft 4% 4% 

Kitty Exp IB 56 16% 16ft 16ft 

XogrEq 73 14 8% 8ft 8% 

Labarge 9 X lA lft 1ft 

Loser |nd 13 ”7 5ft 5% 5% 

Lea Harm 4 205 it 0% % 

Lunexlnc 2lfl 117 13 12% 13 

Lynch 8 7 28ft 28ft 28ft 

Iftnsu 3 311 30%tf29ft 29jz 

Met8aA 044 29 108 Z3ft S 29% 

Mera CO 020 41 3 5% 5% 5% 

MflWUJ S 7 7 7 

Moog A 18 62 Oft 9% 9ft 

MSRExpl 93 150 1 fi H 

MS PH 6 168 2% 2!| 2% 

MTTmA 056339 K1 23% 23% 23% 

MhCanOB 020 13 3 flft 9>z 9ft 

NoncE 112 2100 5% 5% 5ft 

HW 293 53 5% 5ft 5% 

Odette A 34 IX u9% d9% 9ft 


SJWQxp £10 9 15 
SOmUnn 16 119 


Tah Prude 

T eeoatax 

nwmedcs 

Tl xamel n s 

TotCKA 

TuMiDmy 

Train 

Tubus Mex 

TunsfkA 

Tumrafi 


020 48 43 
OX 681218 
66 325 
34 34 

020 T7 206 
79 34 
2 12 
7 21 

007 67 121 
0071512 192 


UBSMdsA 5 20 

UBfOMtsS 020115 30 

UrwfU* 30 X 
USCefcd 2« 60 

nacsmA 251230 

Waame 4269 

wcanerfd 30 317 
Utatsrar OB 24 313 
MET t12 17 341 

women an 14 m 


18ft l3^j IBft 
16ft 18ft 16ft 

2A 2,J ri 

32ft 32% 32ft 

39ft X% 38% 
35% 34% 34% 

!2fc 12ft 12 ft 
25% reft Wh 
12ft irft 12ft 

31ft 31ft 31ft 
4 J 2 4% 4% 


a - - ■ . ' 

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BataHWi 
Baker J 
BUvmLB 

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BanfcarcCp 

Banknorto 

BantaGeo 

BsseiF 

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BEST Fttl 

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0X16 13 187 21 

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19 9Xi06ft 
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040 7 129 15la 
050 14 17 X 
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080 15 278 28% 
060 14 598 25% 
160 13 884 58% 
1.16 9 IX 29% 

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023 19 117 21ft 

15 65 29% 
15 41G0 12% 

076 6 105 38% 
56 1415 12% 
068 19 IB 48ft 
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076 9 57 » 

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271767 18% 
22 59 12% 
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64 6 34 

7 237030% 


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0i* A *A 
20% 20% -ft 

15% 15% 

X X 4-% 
18% 19 

14% 14% -% 
24 X 

33 33ft +% 

aft 2»ft -% 

24 S% -*% 
58 sa% 

29% 29% 

Bft Bft 

14% 14% J* 
13% 137* -ft 
36% 3612 +% 
10 % 10 % -% 
4% 4% 

11% 11% -ft 

14 14 J 4 

51% 53 -% 

10% 11% -% 
30ft Klft .% 
43ft 44% *ft 
32% 33% *ft 

21 21 A ♦.** 

X X 

12ft -:l 

37% X 
12ft 12ft -ft 

47 4Bft +1ft 
12% 13 -% 

Bft 9% *% 
X 28ft 
2ft 2,1 

17% IBft *% 

12 ft 12% -ft 

10 10ft ♦% 

34 34 

29% 3012 -% 


4 pm doss September 14 


Mgh UmOasBOma 

38ft 36ft 36% -ft 
16*4 16 16 -ft 

9% 9% 9% 

17% 17% 17% 

61 60ft 60% -% 
36% 36% 36ft -% 
22% 21’a K 
14% 14ft 14% -% 

1ft lft 1ft 

33ft 33ft 33ft 
5ft 5% 5ft 

35% 834ft 34% J* 
18ft 17% 17% 

8 % 8 % 8 % 

*5% t 545 ^ 

14% 14ft 14ft -ft 
31% 31ft 31 ft , 


CTec 257 X 26ft 

CaMUed 6 719 5ft 
CadSchtups 099 16 88 X 
CaOmcCamOX 21 48 17% 

Caere Cp 4is 705 Bft 
COpene £25 5 2285 9'« 
Cal Micro 231D42 25 

Cantata 1 1035 lft 

CaiBWaL 2 34 3ft 
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Dnm to 052120 7 67 

Courts 3 185 u5ft 

rsmtniusm 053 22 72 27ft 
Cascade 060 23 176 X 
Caseys 008 181360 lift 
CalgisnR 5 349 7% 

CSA Cp I B 12 lift 
Cta m cor 839662 111 6ft 

Crtrf fid x 1.1 2 12 519 32% 
Crarl spr 22 59 n 
Chamfer 9 16 4% 
Chapter 1 060 B1242 23% 
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ChenKeb 17x100 11% 
OtetreHMr 13 zlOO 3% 
Baps&Te a 701 4ft 

CUrmCp 645481 67% 
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OrruAgc 3115382 X 

OS Tab IX 455 2A 
DscoSfS 1438390 26ft 
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caSsDr 43 147 12ft 

CMhestm 8 183 4ft 
CDcaOfefl IdO 18 X X 
CodaEngy 132 97 6ft 

CodeMann 29 49 11% 
CogmCp 301659 19% 
Cbsnos 109 22 12 

Dtarera 17 1M 13ft 
QAagen 0.40 m a 22% 
CcMGas 158 13 40 22 
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DactA 009 19 923 IBft 
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Qrmtflcte (168 12 336u33% 
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CannrC 172092 X% 
CDmprLabs 3SE 154 lift 
Coasters 56 110 12ft 
ComsmckR X 55* 3ft 
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Csstem 4 143 5% 

CunMCS 58 675 1*23% 
Cuaiftm 11 X 7% 

COOTSA 050 21 70? SOft 
CapjWe 33 405 4% 
CotfcCp 23 5280 52 

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CracfcrB* 002 27 5181 23% 
DayCrap 1 385 lft 
CroanRH X 218 4% 
Cyngen 2 1666 3% 


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Dn Steps 
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D13 X 60 87 

11 146 Lft 
29 113 7% 
• 14 163 15% 

092 12 198 27 

020 19 X Bft 
032 23 8 15ft 

063 44 3 X 

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25% 25% -% 

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27ft 27ft +ft 
24 24% -% 
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7ft 7% ♦% 
lift lift -ft 

15 16ft -i-l A 
32 32% -% 

11 11 +ft 
4% 4% 

22% 23ft 
9 9 

11% 11% -i= 

3% 3% 

4ft *ft +ft 

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53% 53ft ♦% 
32% 32% -% 
X% 29ft -ft 

2,* 2,1 +A 

24ft 28ft +ft 
M 30 -% 
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12% 12ft 
4ft Aft -ft 
Xft 2B 
6ft 6ft *ft 
lift lift 
19 IBft 

12 12 -A 

13 13ft ♦% 
22'a 22% +ft 
21 % 21 % 

291; 29% ♦% 
24% 2+ft J 2 
16ft 16ft -A 

16 IBft -ft 

32% 33 ♦% 

16 18 -ft 
24 a -ift 
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12 12ft 
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48ft 4flft 
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23% 23ft -ft 
7ft 7ft -ft 
19% 20 -ft 

4ft 4% */, 
49*4 52 *1% 

16ft 16% 

22% 23% -% 
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15*2 15ft •% 

30 30 

21 21 -% 


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016 IB 53 15% 
030 32 263 37ft 
1.12 a 115 32ft 
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151103 15ft 
9 306 15ft 
40 X lii 
33 636 7ft 
16 16 Xft 
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11281 2% 
020 24 2167 Xft 
088 14 17 13ft 
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II 407 10ft 
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03024 Bu83% 

7 48 22 


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33ft 35 ♦% 
15 15 
38% 37 ♦% 
32 32 -% 

0% B% -% 

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18% 17 ♦% 

14% 15ft -ft 
IS 15ft ♦% 
1ft lft 
6ft 6ft -% 

34% 35% -% 
8% 8% -ft 
2% 2% -.06 
24% 34ft -ft 
13 13 

9% 9*4 
9% 9K ♦% 
25% 25% 

5% 5,t & 
X% 28*2 +ft 
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32% 32% 

21ft 22 -ft 


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032 23 3318 
227 518 

1 3466 
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2 245 

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15 101 
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21 585 


- E - 

50 3% 3 

2077 4ft 4 
5 1,\ 1,1 
3316 1B% 17ft 
518 7 6% 

3466 1ft <n,l 
2335 15% 14ft 
11 50ft 50ft 
0938 18% 17% 
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216 9% 9*2 
7 15% 15% 
145 2ft Zft 
245 2% 2% 
81 4*2 4% 

3461 54% 53ft 
IX 6% 8ft 
990 12% 12% 
673 IBft IBft 
37 7% 7% 
101 Xft 20ft 
77 21% 21 

585 12% 12% 


Rider* 

Biatmto 

Rserv 

Ftowbd 

FoodLA 

FootlB 

Foremost 

Fosaner 

Foster A 

FrSiFki 

Fsfinlx 

Fst Ham) 

Fufler HB 

ruHanfin 

Furor 

FidmedADfl 


- F - 

11 706 4% 
024 X ID 7% 
004 841446 40% 

18 58X 29*4 
1£4 15 1188 62% 

14 154 5% 
024 0 114 9ft 
32 365 23*2 
QJB4 8 342 34ft 
IdO 12 80 Z7ft 
060 X 313 aft 
1JM 12 383 31% 
IdB 10 297 48% 
038 7 1680 U9ft 
056 7 225 25% 
1.04 8 47 34ft 
45 15 8ft 

27 1651 21% 

19 166 7 

009 16 994 6 

009600 575 Bft 
1d6 10 31 31% 

11 64 12 

34 ISO 3% 
1J>4 12 61 30*4 
040 B 174 16% 
1.18 1 1 35 X 
058 2D 2*0 32ft 
068 11 102 21% 
024 22 386 17ft 
X 323 3*2 


4ft 4% 

6ft Bft -i)t 
39% 40% *1 
X% X +% 
51*2 52% +ft 
4ft S -ft 
Oft 9A ♦,'( 
23 23% 

34ft 34ft -% 
26% X% -ft 
23 23 -U 
30% 30% -1 

48 48% ♦% 
Bft 9ft -ft 
24ft X +ft 
33ft 33ft +ft 
7% 7% 

21 % 21 % 

Bft 6% 

5% 6 ♦% 

8 6 

31% 31% -% 
lift 12 ♦% 
3 3ft +% 
29% 29% -ft 
16*4 16% -ft 
26% X% 

31% 32 -ft 

X% 21% +ft 
17% 17% 

3 3% 


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Garnet B5 

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Genus to 

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Good Guys 

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Green AP 

GrnwaiPh 

Grasnons 

Gmaws 

GT1 Corp 

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tailing A 

Harterydi 

Harper Bp 

HBOACD 

Heehtear 

Heanncre 

Heakhoyn 

Hedmflw 

Hertan) 

Ktonlroy 

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Hogan Sys 

hotagk: 

Home Bad 

Hon tats 

HondKCk 

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Him! JB 

Huidn^n* 

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IB Sys 

OSOomms 
IS into 
fenmueor 


- G 

7 621 
007 23 84 

0 23 
9 10 

016153 32 

040 21 60 

19 2 

31055 
400 40 204 
1662270 
84 3838 
040 21 2EX 
012 15 3569 
080 15 75 
12 181 
15 248 
080 19 169 
300 164 
Q2D 70 511 
034 10 4 

0 121 

1 1830 

637 46 

10 38B 

8 2110 


«ft 3ft 
16*2 15% 
2ft 2ft 
3% d3% 
6ft 5ft 
X 19ft 
5ft 5ft 
10 9ft 
24% 23% 
5% 4% 
35*2 34 

16ft 15*2 
20% 1930 
14ft 14 
5ft 5 

12 lift 
22ft 22% 

3% 3 

21% 21 
17% 17% 
!i ie 

2ft 2ft 

13 12ft 
13% 12% 
10ft Oft 


52 3 

068 9 2 

02913 86 
016 Z7 743 
X 4668 
006 X 12 
11 314 
016 X 1308 
221 
81017 
072 14 370 
015 20 799 
X 265 
080 6 29 
044 18 12 

14 787 
044437 65 

020 17 1657 
OBO 8 939 

ooe 1 a 

IX 556 
17 37 


- H - 

3 5% 5% 
2 24% 24% 
86 15 14ft 

743 32% 32% 
1668 X% Z7% 

12 12ft 12% 

314 7ft 7ft 
1308 15% 15,‘e 
221 lift 11 
1017 15 14ft 

370 21ft aft 
799 7ft Bft 
265 17ft 10% 
29 20% 20ft 
12 25ft 24% 
787 73 12% 

65 *ft 4ft 
1657 18 17ft 

939 fflft 20% 
23 3% 3 

556 Xft 31% 
37 4ft 4ft 


40 8 7% OBft 

273063 9ft Bft 
4 IX 4*2 4% 
X 60 5*2 5% 

2 62 4% 4ft 

040 X 149 17ft 17 
024199 10 14tf13>2 

16 496 14 13ft 

2510053 Sift Xft 
088 15 211 11% 11% 
27 4753 SS 22ft 
31 124u13ft 13 

6 53 ?,’* 2% 
024 1224642 eft 64% 
6 158 1ft 1% 
040 X 6101 16 15ft 

IB 78 6ft 8ft 
024 17 134 13% 13 

3 SOB Bft 9% 

4 623 4ft 4% 

5 230 12 11% 

X 2459 12% 12ft 
14 16 17 17 

002 IB 229 2% (Eft 
275 16 5% 5ft 
005 21 4Mu31% 30*2 
2 1676 1*4 3% 

16 ZlOO 18 18 

usanoo 209 209 


4% ♦% 

15% 

2ft -ft 

3% -ft 
6ft ♦% 
a 


24 

5 *% 
34ft -ft 

16ft ♦% 
19% -ft 
14 
5ft 

lift -ft 
22% 

3 -ft 
21ft ♦% 
17% -% 

ft +A 


13ft *% 

10ft ♦** 


5% -% 
24% -% 
14ft -ft 
X% 

Xft -ft 
12% -,i 
7ft -ft 
15,1 -A 
11% -% 
1b »ft 


16ft -ft 
20% +% 
25ft +% 

12% -ft 

4ft 

17ft -ft 
20ft ♦% 
3% +% 
31% -% 
4ft -ft 


6*2 

9% 

4% -ft 

5ft 

4ft 

17ft +ft 

14 +ft 
13% +ft 

21% +ft 
11ft -ft 
E% +A 


JU Snack 
Jasmin: 026 
JLGM oio: 
Johnson W l 
Jpnwkfl 
Junes Med idUO 
Jratyn Cp IX 
JSC Fin 010 
JunoUgi OX ' 
Juste 016 


12 % 12 % 
8% 8% 
39*2 37% 
24% 24% 
15ft 14ft 
8 7*4 
30*2 29*2 
27 26% 
19 18ft 
12ft 11% 


4ft +% 
11% -,*« 


2% ♦% 
5ft 

31 A +A 

3ft *ft 

18 +ft 
209 


12 % ♦% 
8*4 -ft 
37% -1 

24% 

14ft +ft 
7% -% 
Xft +ft 

27 +ft 
19 -*ft 
12 ♦% 


K Swiss 

KanonCp 

KdfeyU 

Kelly Sv 

keraudey 

Ktaai 

frxhner 

KLAlnar 

KnpwMge 

KMA 

Komeghc 

KiBAeS 


- K- 

009 It 28 22% 22 
044 5 124 10 9ft 

3 320 6ft 8*2 
072 X 141 30% » 

011 11 X 6ft 6% 
084 13 *2 X 24*4 
21 27 10 10 

B62988u50% 48 
21588 3ft 3ft 
0 303 A % 
213 211 23% 23% 
9 1233 15ft 14% 


22 >4 

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8ft 

30% -ft 
6,1 
24% 

10 A 
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50ft +ft 
18 -% 
5ft fti 
9ft -ft 
15% 

2 ft -A 
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8ft «-,*( 
12% 


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Hal Coign 

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072 11 12 17% 

0361 17 2356 u14% 
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500 11 47 17% 

041104 IB 60% 
161612 28*2 
27 1347 19ft 
123 11 £2 8% 
7 115 5*4 
OZ7 X 16 u35% 
050 X 52 18% 
1X1404 15*4 
24 1 54 32% 
004 19 244 u7ft 
X 1003 7ft 
056 X 52 58*2 
040 X3635 45*2 
13 106 IB 
4 10 5*4 
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X 1144 19% 
77516888 15% 
X 3383 44*z 
31 6ft 
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25% Xft +ft 

17 IT 
13*2 14ft +% 
12% 12% -ft 

17 17% ♦% 

60% 60% -ft 
27ft X% -ft 
1»ft 19*2 -% 
aft Bft -A 
4ft 5% 

35 35ft ♦% 
18% 18% -ft 
14ft 15ft -ft 
Xft 32ft +ft 
7ft 7ft +% 
6% 7ft ♦% 

59 58 ■% 

44% 44ft *h 
1B% 18% 

5% 5*4 
38*2 38*2 
18ft V»ft +ft 
15ft 15*2 -A 
42% 42ft -lft 
6*4 6% -ft 
3ft 3ft ♦* 


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Octal Com 17 574 
OflehreLg u 308 
OgiebayNxlXio 16 
OrtoCe 1.46 6 729 
OU Kent 1.16 10 205 
DU HUB 09? 16 19 
OnfcvrarpxIdO 7 51 
DnePhee 11 19 
Optical R ?i 177 

OnctaS 841314 

OhScnce 461387 

I Ortntech 096 X M 
OrcndSmp 7 X 

OregraMei 031 9 138 
Qahep X 2 

i OehkflA 041381 247 
OahkoahT 050 10 *2 
OOaTal 1.72 14 69 


- O - 

GO 13% 13% 
574 23% 22% 
308 14*« 13ft 
16 30ft Xft 
729 X% 31% 
205 34% 34 

19 37% 36*2 
51 X 29*2 
19 Wft 14 
177 23ft Xft 
1X14 44 43% 

1387 16*2 17% 
26 10*4 9ft 
X 10*2 10 

IX 5% 5ft 
2 3*? 3ft 
247 15ft 15 
42 10*2 10 

69 33% 33 


13% +*4 

Z 2 ft -*2 
14,% 

30*2 +1 

31ft ♦% 
34ft +ft 


14*2 +% 

a -A 

43% ♦ft 
18 

10 4-ft 
10ft +% 
5*2 

3*2 +ft 
15% +% 
10*2 +*4 
X 


- P - Q - 

IdO 13 429 48% i 
058 11 84 12% 1 

IX 15 34 23% J 

31 343 74ft 7 
3? 8382 X 
034 40 863 33% 3 
21 61 9ft 
050 59 X3 ul 4 
9 3 15*4 1 

190 23 4 33 

072 16 688 42ft 
13 715 ift 
020 X 127 X 
032 14 978 ul 4ft 1 
1.12 16 9 30ft ! 

34 5G 11% 1 
X 622 5ft 
048 4 2 9% 

M 569 17ft 1 
43 364 17% 1 
064 33 X 49 4 
OfiB 21 4968 31ft ! 
012 9 657 17% 1 
5 X 8% 
15 13 5ft 
OOB 3 643 7ft 
1791691 48% 

2317716 15ft 1 
42 49 5*2 
33 246 19% 1 
024 23 22 X ! 

012 9 24 16% 1 


47*4 48% -% 
12ft 12ft -ft 
22 % £ 2 % -% 
73% 74ft +ft 
X 27*2 ♦! 
32ft 32ft -ft 
8*2 Bft 
13 13% +% 
15% 15% -ft 
33 33 

42 42ft -ft 
5ft 5ft 
24 24% -% 
13% 14% ♦% 
30ft 30ft ♦% 
11% lift -ft 
5*8 5ft 
9% 9% 

16% 17 -% 

16*2 17ft +ft 
48*2 48% 

30% 31% +% 
16ft 17*2 +*2 
8A 9% +% 
5ft 5ft 
6% 6 7 a -ft 
48 48*2 -% 
lift 15A *ft 
5*2 5*2 -ft 
18ft 19 -% 
25% 25% -% 
16% 16% *ft 


H to 

Sadr Dh. E m Mp* Law Lad Owe 
Pyramid B23H 8ft 8% 8ft +ft 

OuanaLog il 494 7% 7ft 7ft -ft 

OuakSfOm 062 71 5 17% 17% 17% -ft 

Oral Food 0X 17 53 23% 23 3ft +ft 

Quartum 761 1108 17ft 18ft 16% ♦% 

Quick#. 23 1074 16ft 16 16A -A 

DW IK 30 8694 44% 44 44ft -ft 


-L- 

Lahone 072 24 b X 16% 19% 

Ladd Fun 012 40 557 7 6*2 6ft ♦% 

Lantech 44 3010 utO 38% 39ft -}j 

Lancaster X 048 151450 34% 34 34% 

Lance Inc 096 18 860 19 18% 18% 

LandmkGpn X 1274 23ft 22% 22% -ft 
Lanopbcs 13 IB 9ft 9% Bft 

Usereqw X 1620 4*2 4 4% -ft 

LaiOceS 16 1978 19ft IBft IBft -ft 

Lawson Pr 048 18 S28 25% 25*4 25*4 -% 

LOOS 324 4501 Xft 22ft 22% -% 

UUCP 016 2 112 5A 5ft 5,% +A 
LaMars X 578 18ft 16*2 ifi*; -ft 

UtoMCp 141531 24% 23% 23% -% 

LBS Tech 11 OX 17 24 18% 1B, ? C 18% 

UMne 22 415 4ft 4ft 4% -ft 

I LDyMAx 028 12 782 13ft 12% 12ft -ft 

LlnBr ItS 2034 135% 134^134% -% 

LtaeokiT 052 15 X IB 15% 15% -*2 

UrabtqMI 12 68 X Xft 28*2 -ft 

LtoarTec OM 35 4448 44 % 42% 43ft *ft 

(JquBox 040 18 4 35*2 35ft 35ft 

loewon Sp one 28 4009 23ft 23*2 23}2 *?t 

Lone Star 9 Z72 8% 6*2 6ft ♦% 

LOUD 34 4682 42 % 41% 42% ♦% 

LTXCp 3 3375 4,% 4 4ft +ft 

LVMi 076 4 32 32ft 32ft 32ft -ft 


MO Cm 005 2024064 23% 23ft Xft -A 
MS Car's 22 88 25% 25% 25ft +ft 
Mac MB 080 46 57 14ft 14ft 14ft 

MadnonGE ld8 14 134 34% 33% 33% -ft 
Magna Pur 12 447 27%d2Bft 26ft -ft 
MepaGm 0.78 13 373 ?0ft Xft Xft 

Mai Bin 12 214 8*4 7ft 8 

Marram Cp 23 1015 10% 10 10ft -ft 

Marine Dr 13 437 5 4ft 5 +ft 

Martel Cp 9 7 42 41% 41% -% 

Manpad 2 X 1ft 1*2 1*2 

MartahH 19 27 9 8ft 8ft ♦% 

ManhSmhA 044 11 11 11*2 11% lift +% 

Mrashal 080 11 1213 20% 2Dft 20fi -A 

MastBC 9 412 8,6 Bft 8% +% 

Madrntm 47 506 B2 60% 61% +*2 

Maxtor Cp 0 2X5 5% 4ft 5 +ft 

McGtahR 044 12 5 15ft 15*2 15ft 

McCmnlc 048 15 914 19*2 18 19% -% 

McCwC 17320567 54ft 53% 53}| +}2 
Madaxto 016 17 X 14% 13*2 13*2 

MactcJmS 048 14 X 24% 24ft 24ft ♦% 

Melamine 024 X 152 10 Bft Bft -ft 

Mentor Cp 016 54 172 18*2 16% 16% -% 

MtmliG 024 22 31 7B 10% 9% IDA ‘A 

Mercartfi 060 12 E62uZ2% 22% Xft -% 
Uticay C x 0.70 7 136 28% 27 ft 27% ♦% 
Meridian 1-36 12 377 31ft 31% 31 A +A 
Hansel 1HB7X 11% 6ft lift ♦!% 

Kathode A 012 191745u19% 19 19ft -ft 

MFSQn 37 976 M% 34% 35% *lft 

UchaeiF 020 X 97 12% 12ft 12ft -A 

Mkh MB £0(051 304 77ft 77% 77ft ♦% 

MkroHkn 9 382 3ft (Oft 3% *ft 

Mkraage 1111043 15ft 13ft 14% 

Ukroraoi 71051 8ft 7ft Bft ♦% 

Mograb 11 276 6*4 5% 6ft 

Ucrpuks 2 317 7ft 6ft 7 

Wcsft 1616851 58% 57ft 57ft *Va 

MdABU 2*793lu29ft 27ft 27ft 
Mttan&c 052 11 5331 23ft 28% Xft ♦*? 
IfafwGraki 050 24 X Xft Xft 29*2 -ft 
MOerH 052 17 382 24ft 24£ 24% 
iMcm 470 24 23ft Xft -A 

Wnrtach 21 276 16% 15% 16ft -rft 

UohieTef 56 2374 22ft 22ft 22A -A 

Modern Co 020 M 42 7ft 7ft 7ft 

Modmelffl OJC X 45 Xft 27ft Xft 

MQiex 004 50S U40 39*< 39*4 -*2 

Mote Inc 004 32 420u43% 42ft «ft -ft 
Moamm 004 15 IIS 7ft 7ft 7% ♦*? 

HooneeP 036 23 347 32A 32A 3ZA 

Ilk Coflee 18 197 15, i 15% 15ft 

MlSSys* OS 9 154 23% 23 Xft -% 

Htmsd 14 466 32ft 32 32ft ♦% 

Myragan 5 116 10ft ID 10*2 


rental 

11 

512 12% 11% 12% 

*% 

Mys 

3 

572 4% 4% 4ft 

♦ft 


1 

267 4 3% 3% 

-ft 

Raymond 

27 

56 20% 20*4 20% ♦% 

Renton 

14 

119 15% 15*2 15% 


Rente A 

17 586 16% 16ft 16% 4-1% 

RepUgao 

1 

233 3 2% 2% 


Rep wade 

B 

«38 3ft 3% 3*2 

♦ft 

RewrMnd 

19 

IX lift 10% 11% 


Ftauterc 

049 161829 46 45 45% 

-ft 

Renin he 

9 

X 5ft lW% 5ft +ft 

flhwfsJ 

05010 

12 34% 34% 34% 

-ft 

RoadwS 

1 JO a 4032 BldSSft 60*2 

♦ft 

RIMqnt 

012 12 

32 6 6 6 


RochSiSk 

OS 4 

482 19 IBft 18% 

-ft 

Roceaveh 

044 3 

7B1 17ft 16ft 17A 

+A 

RtssStrc 

020 12 

813 17 16% 16*4 

-% 

RowchMed 

X 312 X% Xft 23% 


Rouse 

OS 60 

49 19ft 19 19% 

*A 

RPMInc. 

052 X 

572 18% 17ft 18% 


RSFh 

QdO 14 

3 23% X% 23% 


RyanFndy 

11 1344 6*2 6*4 BA 

■A 



- s- 


Srteco 

IS 61161 54% 54ft 54% 


Sandemn 

OX 14 

34 19% 1B% 19 



ScrtmbgrA 030 X 163 27% 27 27 -*j 

Scl Med L 101145 X 37ft 37ft -% 
SaSyatffl 161613 20% 20 20*4 -ft 

Sdos 71672 7% 7% 7% -ft 

ScUexCp 052 10X10 22ft 2lft 22% ♦% 
San Brd 6 592 4% 4 4% 

Seed! rid IX 45 4 37ft 37ft 37ft *% 

S'gato 11(1742 25% 24ft X ♦% 

SB Cp 015 X 18 22% 21ft 22% ♦% 

SetrefeB 036 6 131 3% 2ft 3% ♦% 

SdecSns 1.12 16 44 28% 26% 26% ♦ ft 

Sequent 83 734 17% 17ft 17% ♦% 

Sequoia 34 2211 5% 5 5% ♦,% 

Sere Tech 13 X 9% 9*4 9% 

Sanfraet (7 668 4ft *\l 431 -ft 

Sownsun 022 17 83 18% 17% 16% ♦% 

Staffed 084 20 2338 Z7ft 26% 27ft +1% 
StOSynm 2 439 5ft 5% 5*4 

Starawc as X 7b 22 Zlft 21% -ft 

ShOHUlP 7 183 7ft 7% 7% 

Sena On 16 EM 23% Xft 22\ -ft 

SetraTuc 3 13 3 (O 3 

SgmAl 033 16 3400 X 34% 34ft ♦% 

agmaoes is 655 7% 7 7 -ft 

SSraVBc 008 82 49 13 12ft 12ft 

SkrMGp 36 248 12% 12% 12% 

Sknpson 040 13 39 lift 11 11 

SmOdld X 54 28% Xft 28*4 

SnappiaBv X 4169 14% 13% 14 4^ 

StewareP 1 770 4% 4% 4% 

Sonora OS 16 1690 Xft 22% Xft -*2 
Sorttfel 088 ID 701 Xft 20*2 20ft ♦% 
Spkgai A 020 342386 16ft 16 18% ♦% 
SJudaMd 040 141795 34% 33 33% -ft 

SIP&uBc 030 10 4» 21% 20% 21 A +A 

StcyBJ 1 583 2% 2A 2% ♦% 

Staples 46 7599 31 ft 29ft X 

Stats Sir 060 16 1545 38ft 38ft 38% 

StdMfcra 141202 20% 20% 20% ♦% 
StdHagta OBB 14 12 X% 20% 20% 

Start Tec 006 21 353 19ft 1B% 18% -ft 
StaidyUSA 020 3617® 10% 9% 9ft -ft 

stum 141 s 19ft iBft 19ft 
SnawtaQ 1.10 14 93u23ft 23 Xft +A 

StmcflDy 151644 7ft 7ft 7ft ■*% 
Stryker OX XI 838 37*« 36% 36ft -% 
SutranD 21 52 14ft 13% 14ft 

SumiontoB 080 18 X 25 24ft 24% 
SanmBBc 064 14 1638 Sill 2ift 31(2 ♦,** 
Sumraa Te X 934 33% Xft Xft +ft 

Sun Spot 10 164 <% 4ft 4ft -ft 

Sunurc 15 sc 28% Xft 27% -ft 

SatttTa 41 6SS 40ft 39% 40 -ft 

Space toe S41IBJ4 47ft 48 46% 

S^rartBC 35 1918 14 13% 13% +% 

SynaBay 040 18 X 19 IBft 18% -ft 

Synerram M XI 4ft 4% 4& ♦,% 

Synergen 1 5531 6 5*4 6 ♦% 

anete 66 89 16 15ft 16 +A 

Synoptics 131M? 15ft 14ft 15% -% 

SystrcSoft 012 152992 13% 13 13ft -ft 

System&so X 146 16% 16% 16*4 -*4 

Sustained 39 Z2fl u8ft 8ft 8% 


T-CenSc 5 605 3*2 3% 3% -% 

T-nroePr 052 X IX 33*2 32% X -ft 

TBCCp 13 217 9% 9ft 9% 

TCACabta 044 X S 34* 24ft Z4A V, 

TBCCOaa 121B89 18% IBft 18% ♦% 
TECumsenzOSO 12 173 48*2 47ft 47ft 

Tekrter 3 7 8 8 8 

TrtraSys 8 IK 12% 12 12% ♦% 

TeCmA 17019273 X% 21% Xft -ft 
TrteOll 8 5962 5% 5ft 5% +% 

T Stabs 31 2992 43ft 4! 43% +lft 

Teton Cp Odl S3 415 15% 14*2 15 +*3 

Terra Tuc X 385 Bft 9% Bft -ft 

TeraPlADB OIO M2980 29% X Xft +% 

Three Com 7016715 Xft Xft Xft -% 

11 230 4% 4% 4% -ft 

TJ tnt OX 29 803 19% 18% 19% *ft 
Trtm Med 4 3834 5% 4% 5/, -il 

Tokyo Uv 034 36 31 6059ft 60+ft 

Tore Brawn « 55 12% >7% 12% 

Tnpps Co 0283501936 7ft 6% 7 A 

TPI Enter 3 70 6ft 6% 6% 

TrenswU 10 14 lift 11 11% +% 

Trenwidcx IdO 11 X 39*4 39*4 39*4 

Inara 21 X 2% 2% 2% 

Trimble 78 iS39u15ft 14ft 15 -% 

TrustadkCxI-IO 10 14 2lft 21 21 -ft 

Tseng lxh OX 12 892 7ft 6% 7 

TysFdA 008190 4428 24% 24% 24% 4% 


USWKr 
Untab 
UQOasGs 
US Tit 
Unfed St 
Unaog 
Unfen 
USBancpx 
US Energy 
UST Corp 
Utah Med 
UtdTeiev 
Udh 


- u - 

084 164303 44% 
2 425 5ft 
IdO 14 31 17 

£D0 12 57 52% 

0*0 8 X 9% 
012 20 16 27ft 

180 26 64 48*2 

IX 109X2 26% 
25 X 3ft 
1.12 0 B41 13 

15 90 Oft 

12 15 52% 

12 952 4ft 


44 44% +ft 
S 5 
16% 17 

52*4 52% ♦% 
9*4 Bft +& 
26% 26% -ft 
47% <7% -A 
26*2 26*2 -ft 
3% 3% +A 
12 % 12 % 

Bft 9% 

51 Xft +% 
3% 4ft +ft 


- V- 

030 X 27 15% 15% 15% 

IS 2545 27% 27 27ft ♦% 

2546281122% 21 22% +ft 

X IX 24% 24% 24% +ft 
TO 285 17 16*2 19% -ft 

24 1646 18% 17ft 18% 

27 7222 12% 12% 12ft -*4 

017 3 82 1918% 19 -ft 


Warner En OIOX 324 
Wantedi 931605 
HtaMUSBOJ! 7 3179 
BWfedSL 084 6 252 
na&hdA 022 9 186 
WausuPMidLX 16 68 
WD-40 £40 18 18 

We** 5 213 

WestOne 072 12 466 
WEtPnb 10 148 
WHpSlA 1 1Z7 

waSeaiA 10 IX 
UHmtle 096 24 118 
WnEScnxna 101 21S 
HMohanL 0X14 62 
Wtmgl 04027 681 
WPP&ULp 01)3 X 545 
Wyman-GchtWa 1 60 


- w - 

324 25*2 25 
IOC 5 1 ,* 5*e 
3179 21% 21% 
252 21% 21ft 
1B6 23% X 
68 Xft 24% 
18 4£% 42 

213 3% 3 

466 31ft 31ft 
146 13 12% 

1Z7 13% 13*2 
IX 3ft 3% 
118 50% 50 
2188 «% 42% 
62 16% 15% 
681 21% Xft 
545 3% 3,V 

60 6% 6ft 


Xft +ft 
5% +A 

21 A +A 
21ft -ft 

23% +% 
25*4 

42ft -ft 
3ft -ft 

31*2 *1* 

12?S 

13% 

3ft +A 
50ft -ft 
44% *1% 
16% 

21% +ft 

3% 

6 % 


- X - Y - Z - 

XKrer 31 4503 50% 48% 49 -ft 

Kama Cora 2 669 3% Zft 3 +ft 

Veto* 094 94 2217 20% 18% 18% +ft 

York tech IS 366 <ft *ft 4*j -ft 

ZkxsUQh 1.12 9 58 40ft 40 40 -ft 




N 


WORLD STOCK MARKETS 


FINANCIAL TIMES 


Thursday September 1 5 1994 



AMERICA 


EUROPE 


Perplexing economic 
data ignored by Dow 


Weak bonds leave bourses trading lower 


Wall Street 

US share prices tracked braids 
yesterday morning, showing 
almost no reaction to trouble- 
some economic data, writes 
Frank McQurty in New York 

By LL30pm, the Bow Jones 
Industrial Average was up 5JJ8 
at 3,885.24, while the more 
broadly based Standard & 
Poor's 500 was 0.24 ahead at 
467.76, In the secondary mar- 
kets, the American SB compos- 
ite inched 0.17 forward to 
456J98 and the Nasdaq compos- 
ite firmed 0.41 to 766J24. 

Volume on the Big Board 
was surprisingly light, with 
only 137m shares traded by 
early afternoon. 

The thin activity suggested 
that investors were perplexed 
about the current course of the 
economy. The day’s economic 
news may have served to com- 
pound that uncertainty . 

The Commerce Department 
announced a 0.8 per cent 
increase in August retail sales, 
a weaker figure than the 1.0 
per cent gain which had been 
forecast. But In spite of the 
recent anxiety over inflation, 
the market could gain little 
comfort from the report Retail 
sales, excluding cars, came 
In at 0.7 per cent, against 
expectations of a 0.4 per cent 
gain. That figure indicated that 
sales as a whole were stronger 
than suggested by the headline 
figure. 

Stocks held steady on the 
release of the data, with the 
bond market offering no guid- 
ance whatsoever. With Trea- 
suries showing no change on 
the day, share prices mean- 
dared within a narrow range 
throughout the morning. 


The release of the Federal 
Reserve's Beige Book report an 
economic conditions at midday 
also elicited a muted reaction. 
In a finding that could trip up 
the markets as the afternoon 
progressed, the Fed said labour 
markets were “steady or tight- 
ening”, suggesting the likeli- 
hood of upward pressure on 


Caught in the doldrums, the 
Dow industrials were drifting 
aimlessly. American Express 
managed to add $% at $81%, 
buoyed no doubt by its recent 
moves in the travel and credit 
card businesses. Caterpillar 
appreciated $% to $54 and IBM 
$% to $69%. 

Heightened speculation on 
the fixture of the NBC broad- 
casting network had only a 
■marginal Influence on the 
share prices of the companies 
involved. 

Walt Disney, which was 
reported to be in talks on 
acquiring NBC from General 
Electric, slipped $% to $41%. 
GE climbed S% to $50%. Time 
Warner, also said to be discuss- 
ing a possible deal, edged down 
$% to $36%. 

CBS, a second media concern, 
thought to be ripe for takeover, 
rose $6 to $342% as bargain 
hunters moved in after an 
$11% dreg) in the previous ses- 
sion. Tuesday’s setback 
reflected a downgrading by 
Donaldson Lufkin & Jenrette. 

Following Kohlberg Kravis 
Roberts's $2bn bid far Borden, 
Quaker Oats inspired buying 
from those who consider the 
food group as a likely target 
The stock gained $2% at $81%. 

In a mostly quiet technology 
sector, CompUSA forged ahead 
$1% to $10% and Compaq 
moved forward $% to $36%. 


Canada 

Toronto sought fresh impetus 
in the a tb a m fl th of the Quebec 
election as the market also 
awaited a speech later In the 
day in which Quebec's presi- 
dent elect Jacques Parizeau 
was expected to lay out his 
sovereignty plans. By late 
morning, the TSE-300 index 
was 9.02 lowo- at 4^35^0- 

Brazil 

S5o Paulo rose L3 per cent in 
moderate early trade as inves- 
tors welcomed a court ruling 
that cancelled a 1990 Telebras 
share subscription. 

The Bovespa Index of the 55 
most active shares was op 716 
at S5JB2R just before midday. 
Overall turnover was R$23L8m 
($27Llm). 

Analysts remarked that 
prices rallied because the 
amount of Telebras shares in 
the market was likely to be 
reduced. 

They added that unless the 
company appealed, Telebras 
would be required to return 
the funds to shareholders ami 
that the refunded money 
would hove to be adjusted far 
losses due to faiflaHmi 

The Telebras subscription 
was worth about $160m In 1990, 
which at current market val- 
ues would translate to about 
$600 m. Telebras preferred, 
which resumed trading after a 
half-hour suspension shortly 
after the opening, was quoted 
0.4 per cent up at R$53. 

A bourse official said trading 
of the 1990 share subscription, 
which tmffl now had been in 
the form of stock receipts, 
remained interrupted. 


Gold and mining stocks retain gains 


Gold and mining-related shares held on to 
gains on buying ahead of today's futures 
expiry, but some late selling took them off the 
session's highs. 

The gold price held above $390 an ounce and 
expectations continued that a push to $400 lay 
ahead after short-term consolidation. 

In comments before the parliamentary 
finance committee. Reserve Bank governor Mr 


Chris Stals again warned of a possible rise in 
interest rates and said that the country could 
not support an instant abandonment of foreign 
exchange controls. 

The overall index put on 15 at 5£73, industri- 
als firmed 1 to 6,545 and the gold shares index 
advanced 36 to 2/153. 

De Beers moved up 65 cents to S110.16, while 
in golds Vaal Reefis was B5 higher at B475. 


— nmOlHO MARKETS; H=C WEEKLY IHVESTABUS PBCI INDICES 

Dollar terms Local currency terms 


Marine 

No. of Swtante 8 
stocks 1884 

% Change 
over week 

% Change 
on Dee *93 

September 9 
1994 

% Change 
over week 

% Change 
on Dec HKJ 

Latin Amarica 

(209) 

757.00 

+1.1 

+16.4 




Aiyan&m 

P5) 

962£5 

-12 

-32 

590847.90 

-12 

-82 

Brazil 

(57) 

421.03 

+1.4 

+81 2 

1^75,735^48 

-02 

+1^53J 

ChOa 

(2 Si 

720.14 

+0.4 

+305 

1,20033 

+oi 

+25.9 

Co)ombia , 

fill 

901.69 

-4-4 

+309 

1507^4 

-4 JO 

+41.1 

Mexico 

OM) 

97823 

+2-0 

-Si) 

1^43078 

+3.1 

+85 

Rem 1 

(ID 

15L23 

-02 


20944 

+03 

+31.7 

Vanazuaia* 

(12) 

504J)4 

+1.3 

-4.7 

220420 

+1^ 

+55.1 

Asia 

C5S7) 

285 bB 

+1.7 

-1.8 




China 4 

08) 

111.02 

*4A 

-25A 

11928 

*42 

-289 

South Korea* 

(158) 

138U2 

+6A 

+17A 

14030 

+05 

+186 

PhRppkws 

(18) 

303.68 

-3Ji 

-108 

38143 

-44 

-14.1 

Taiwan, China* 

(90) 

159.66 

+04 

+1&1 

15658 

+02 

+173 

India' 

(76) 

14359 

+03 

+23.0 

15046 

+03 

+23.0 

Monaaitf 

(67) 

116.17 

+4.0 

-oa 

13741 

+44 

-35 

Maiayaia 

(HS) 

323.07 

+2.7 

-4.7 

304D8 

+2.7 

-08 

PKlatan* 

(15) 

390.49 

+OI 

+07 

54228 

+03 

+2.7 

Sri Lanka" 

(5) 

204.12 

+8.9 

+102 

21947 


+149 

Thafland 

(55) 

43805 

-1^4 

-03 

434X9 

-1.7 

-10.1 

Ewa/MM East 

(125) 

11708 

-3J 

-303 




Qreocs 

(25) 

22227 

-0.1 

-2.4 

36238 

-1.1 

-03 

His may* 

(5) 

188.71 

-04 

+108 

24000 

-1.0 

+228 

Jordan 

(13) 

155.77 

-O* 

-6.9 

22336 

-08 

-8.7 

POiWKl" 

(12) 

635.43 

-42 

-222 

922.73 

-4.7 

-184 

Portugal 

PS) 

129 J39 

+08 

+13.7 

138.72 

-02 

+1.1 

Turkay" 

(40) 

112.08 

-7.3 

-47J3 

1.778.76 

-7.3 

+228 

Zimbabwe* 

(5) 

266.10 

+0.4 

+31.7 

31942 

+05 

+495 

Composite 

(881) 

37024 

+1.1 

+4.1 





Mw as n a w awww* w>wa» eteng— — p—Mpeieerimtiwwaepw^yelUay few dmc Due nm-too ampe mem oomt 
NmwnjMriMT.-ffDMOT rwv;flMeis met mom *r >mk a m* <*m * tsbt; (nun, e «e? 0E*> as two? mmr 1 taae oq 
om m tarn nnom at me fwore n m* ** p*** a raw. 

Goldman Sachs has this week increased its asset allocation In the emerging markets of 
Thailand, Singapore, Hong Kong and Mexico, at the expraise of exposure to Europe and 
Japan. The US investment bank noted that emerging markets would benefit most from 
US investment flows resulting from the slowdown in the US economy “as the degree of 
risk aversion falls in rising equity markets; more importantly, the emerging markets 
retain a significant advantage In mat they are trading at p/e to growth ratios that are 
well below those prevailing in the C5 countries". 

As far as Mexico is concerned. Baring Securities, in its latest monthly strategy update 
on the country, reports that the stock market has not fully disc o unted the new political 
environment for the short and medium term, and at a 1995 nrice/eamings ratio of 1&8 


Mexico is rated last among the six top Latin American markets. Baring forecasts, in its 
most likely scenario, index targets of 3,180 for end-1994 and 4,177 for end-1995. 


FT- ACTUARIES WORLD INDICES 


Bourses fell back in the 
afternoon as bonds weakened. 

AMSTERDAM retreated 
slightly in line with the perfor- 
mance on neighbouring mar- 
kets. The AES bwie i slipped 
2.13 to 42056. 

DSM continued to move 
ahead, helped by reports of 
brokers' upgrades, with the 
shares rising at (me stage to an 
all-time high of FI 156-50, 
before falling off at the dose 
to finish FI 2-80 higher at 
FI 152.00. 

Boare Govett has put a buy 
recommendation, on the stock 
and forecast that the chemi- 
cal's group would continue to 
show a shar p increase in prof- 
its in the next few years, 
helped particularly by the rise 
in plastics prices. The broker 
raised its estimates for 1994 
and 1935 ftwmrng s per share to 
FI 13 from FI 10 and to FI 19 
from FL 15 respectively. 

The other main stray of the 
day concerned KLM, which 
gnid it bought the stake 
held by Foster's, the Austra- 
lian brewer, in Northwest, lift- 
ing its holding from 20 per cent 
to 25 per cent 

KLM said it would use part 
of the proceeds from its share 

ASIA PACIFIC 


FF4£Bntndc1U 
FT-SE EMraKZDO 


ft-se enmek too 
FT-8E Entfncfc 200 
BMioncwimtH 


■THE EUROPEAN 8BRES 
opm W» nj» . taoo tain . i4jo, ,15JM cum; .. . 

imii ttfia 35 txeso uesx i*i.» imoa -.ms imar 

WltUO PBOff MWLZ2 HOBJl 1*0^7 1*036 1404a T4C14B 

ap-ra sti>n sapfl ■ to»a Wt „• 

1367.41 1366m. 137003 138001 1371.13 

141244 1416.17 141030 . . 1431.14 142*33 

N* TOO -13B&TK KB- MWUl W Mfi WB - WUml M0L43 1 Mt V- ' ‘ 


issue oarHer tMs year to fund 
the purchase, estimated at 
some FI 180m. KLM closed 10 
cents u p at Ft 49.40. 

FRANKFURT Increased Its 
losses in the post-bourse, after 
a negative earlier session, as 
the markol: naimft muter pres- 
sure from bunds. The Dax 
wittor ended official hours' off 
11.97 at 2424.12, and in the Rds 
recreated to 2JU8D8. Turnover 
remained low at DMSAbn. 

Brokers do not expect the 
market to receive a lift from 
. the meeting of the Bundesbank 
today, with no movement on 
interest rates expected. 

The expiration of options 
tomorrow has also unsettled 
investors this week. 

ZURICH extended losses dur- 
ing the afternoon, with lower 
bond futures and the weak dol- 


lar depre ss ing 1 the mood. The 
SMI index lost ZL1 at 2£37.7. 

Mr MkhaeL:Chafc at Robert 
Fleming Securities commented 
that relative! ltd the rest cl 
Europe, the performance affiie , 
Swiss market had been volatile - 
over the summer, suffering as. 
the key sectors in themarkef - r 
the financials, chemicals and 
drugs, and foods - had been 
. but of f&vour. : 

Although sentiment towards- 
these j stocks ba d changed 
somewhat in the past few 
weeks, be said, it did not 
appear to be enough to geniav 
ate any farther significant 
recovery in the prices of stocks 
such as Nestife and the drug 
issues;, except possibly Roche, 

fnr th* 1 time. hflfng 

Anvitip- rhermiraila , Tlnrito cer- 
tificates declined SFrTO to 


; SF16455 and the Sandoz bearer 
shares finished SFr8 cfaeapdr 
- at SFtggcl 

CS HbMiiig, upgraded to ii 
boy -by Capel following 

jte.dtofe^towitiidrawltshid 

for.; "Austria^ Creditanstatt- 
BankVeraia, slipped SFr8 to' 
SFTS64, while DBS retreated 
SF18 to.S®E£212. 

. Nestte jSFrlfi jo. 

SFrL220 ra'tov^stors sold Hold- 
ings ahead aftpday's- half-year 
figures. . 

■ CycHcals put in a firmer per-' 
formahco. wrth BBC bearers 
SFirS 1 Hitter ’ at SFrl.172 and 
Sulzer registered SFril ahead 
■ at SFT692. ' • • 

PARtSwas upset by p r ess ur e, 
in the matit sending the : 
CAG4&; index down 1842. to 1 
l^52A4, The index moved in> 
range between 1,968 and lAto 
as tocnover reached FFi^Bbn. 
PeogwAwas hit by the news 

of Tnhrrfnant Ronanlt pri v»- 

tdsatto^. - its shares felBng 
FFi 29 toJSFtfSS: 

. Better news came to the 
asristatice of Bancaire, up 
FFr34JJ0 at FFr487 JS0, -as it 
reported good firsth^df figures. 

mtTaw remained on tiie 
upward track in technically 
driven trade ahead of today’s 


rad of the September account 
The Comil index rose 6.74, or 1 
per cent, to 65493. 

Insurers led the market’s 
-advance, with Generali rising 
L750, or taper cent, to L4L550 
ahead of the bonus onfrfbr-10 
rights issue which begins 
tomorrow. . 

Mediobanca put on L200 at 
after the merchant 
bank said that its . capital 
increase, postponed because of 
poor market conditions in 
June, would be discussed at a 
shareholders TrwpHng 1 an Octo- 
ber 28. 

• The FT-SE Eurotrack Indi- 
ces committee has approved 
' the quarterly changes to the 
FT-SE Eurotrack W0 and 200 
indices. The following constit- 
uent changes will be made on 
September 18: tor inclusion, 
KPN, ENA and Philips Elec- 
tronics; tor exclusion, Fom- 
ento de Construodones, Banca 
Cummadale Hafiana and Stet 
On the indicative reserve list 
Telecom Italia, Schneider, 
Volkswagen (Reg), Investor 
"B”, Zurich Imnaance (R^) 
and Akzo Nobel. 

WrfttMi and edtod by Jodi PW . 


Nikkei eases as Seoul posts intraday record 


Tokyo 

Speculative sales, corporate 
profit-taking and index-led sell- 
ing by arbitrageurs pushed the 
Nikkei 225 average lower, agen- 
cies report from Toyko. 

However, many investors 
remained absent ahead of 
today’s national holiday. 

The Nikkei 225 was down 
126.38 at 19,919.38 after a day’s 
high of 20,040.71 and low of 
19,906.08. 

With public funds quiet, the 
market was weighed down by 
domestic corporations engaged 
in last-minute profit-taking an 
shoit-tenn tokkin ftmds, index- 
led selling by ar bitrag e urs, and 
investors taking short posi- 
tions on speculative shares. 
Fbresgn investors were mostly 
inactive. 

Volume on the first section 
was estimated at 270m shares, 
down from Tuesday’s 3S9-2m- 
Retreating stocks ratuumbered 
rises by 743 to 227, with 207 
issues unchanged. The Nikkei 
300 Slipped UK to 289.24 and 
the Topix index shed 8£5 to 
L583.96. In London the fSRf 
Nikkei 50 index was off 0.70 at 
L29437. 

Turnover an the second sec- 
tion was estimated, at 7m 
shares, little changed from the 
previous day’s 6.6m. 

Tsumura, a Chinese medi- 
cine m a nufa cturer, became the 
target of speculative selling, 
falling Y120 to VL050 on the 
day’s third biggest volume of 
6J2m shares. Newspapers 
reported that the company 
faced b usin ess a nd manage- 
ment difficulties, 

Magara Construction 
dropped T66 to Y905 on turn- 1 
over of 2.4m shares, while San- 1 
rio declined Y180 to Y1.430. 

After the market closed, 
Hanwa, a steel trading com- : 
pany, announced that it expeo- 1 
tod a large net loss for the I 
first fiscal half - likely to 
total Yl75bn. 

The share price of Hina 
Motor jumped Y21 to Y959 fol- 
lowing its announcement 
it expected to see pre-tax prof- 
its rise by 22 times in the cur- 
rent fiscal year. Nissan Motor, 
following Tuesday’s advance, 
receded TB to Y785 on turnover 
of 2.7m shares. 

Nippon Telegraph and Tele- 
phone moved forward Y6.000 to 
Y894.000 and DDI improved 
Y2.000 to 7886,000, but the 
newly listed Japan Telecom 



finished 750,000 weaker at 
74.15m, unable to sustain a 
morning rally. 

Roundup 

Sattip re gional marfmta moved 

sharp l y higher. 

SEOUL continued its 
advance, in spite of Won25bn 
of sales by the stock market 
stabilisation fund, which 
stepped in shortly after the 
composite index hit a record 
high of 1,007.98. The index 
ended 3A8 up at 99956 amid 
speculation that securities reg- 
ulators would meet tomorrow 
to discuss overseas listing by 
primary blue chips. 

Samsung Electronics 
renewed its record peak, gaire 
ing Wod 3,000 at Wrati.44,700. 

BANGKOK rallied through- 
out the day, led by recently 
weak banks, and the SET index 
dosed 28.41, or US per cent 
better at 1,586.14 Turnover 


rose to Bti2.7bn from Bt7.QSbn. 

TAIPEI was propelled 1 per 
-cent higher by a late surge m 
financial stocks, which took 
fire weighted Mot above 7,000. 

D emand for the Kg Three 
commercial banks, fuelled by 
the lifting at a three-day rou- 
tine ban on margin trading a 
month before shareholder 
meetings by Chang Hwa and 
Hua Nan, pushed the market 
up 7016 to 71125. Turnover was 
an active T$69.79bn. 

Chang Hwa climbed T$13 to 
T$206^Hwa Nan T$lAto T$229 
and First Ccanmmdai, which 
still bis two days of its three- 
day ban to run, 7$12 to ,T$194. 

mAwti.A rose oh renewed 
buying of blue chips mid some 
second liners. The composite 
index fi™a«»d 2835 ahead at 
2£8L59 as investors positioned 
themselves hi anticipation of 
the announcement of a new 
basket of shares in the index, 
expected later in the day. 


Metro. Bank surged l&A pear.: 
»gnt to 800 pesos amid reports 
that it will be included in the- 
index. The newly listed Moh- 
dragnn jumped 7A1 per cent to 
*7-5® pOSQS- »' ■*- 

HONG KONG encountered 
.selling of p rope rty and finance 
shares from London, which 
wiped out earlier gains, and 
the Hang. Beng index closed 
90.61 down at 9£48.40. 

Same brokers said: the late 
selling followed allegations by 
the Beijing-controlled .China 
. News Agermythat the' ccddjmd 
. government had given Jardfoe 
Bfathesouuccailainer tenmhal 
contract 4n return for its 
support for (krmnor Ghris 
Patten’s political reform pro- 
gramme. But there was little 
impact on the Jhrdme shares, 
Jardine Matheson curing 60 
cents to HK$74J5 and Jardine 
Strategic 40 cents to HE382.40. 

The Hang Seng index ol 11 
H shares shot up 46.48, or 32 


pra cent, to a day’s high of 
.1,518^87 before profit takers 
dragged it back to fibish at 

~L478B9, Up jOBtrBAO: -- 

SINGAPORE drifted I^wer in 


traded over tha^ounter 

fell' bafk fr oy n intrailaj ^bighs. 
The Straits Times Industrial 
index eased L35 to 2^3L 
: KUALA LUlHFDR.eiuted well 
off the day’s high aftes^profll- 
takmg took its ton of ainarket 
, stiR driven by rotational play 
of specnlative stocks. The com- 
.^idsfte todex dosed :4-73; up at 
£173.84 after touching UJ3229. 
"" KARACHI aftB-sngprated by 
■hopes that foreign interest in 
an offering of Pakistan Tele- 
communications Corporation 
vouchers abroad would boost 
confidence in the. domestic 
market The KSE 100-share 
index climbed 2356, or LI per 
cent, to 2JH253. Brokers raid 
yesterday the PTC issue could 
be heavily oversubscribed 


LIFFE’s Three Month 
ECU Futures Contract. 



The greater your ECU interest rate exposure, the more you 
should know about this important risk management tool. 

LIFFE has now introduced two additional delivery months in 
response to member and market demand, bringing the total 
number of delivery months to six. This has been made 
possible by the renewal of the designated market maker 
scheme. 

The following major institutions win continue to ensure 
liquidity, upon request, in all delivery months of the three - 
month ECU futures co n tract 

HSBC Futures, a efivisfon of Mkflahd Bonk pic 

fstvtuto Bancario San Paolo di Torino &pA 

Kredietbank N. V, 

NafMfe8t Futures Limited 

(acting an behalf of National Westminster Bank Pfc) 

UBS Futures & Options Limited 

(acting on behalf of Union Bank of Switzerland) 


Fbr further information, please contact Angelo Proni or 
Jonathan Seymour at LIFFE on +44 71 379 2467/2425- 


Cwmon Bridge, 
London EC4R3XX. 
Tal: +44 71 623 0444 
Fax: +44 71 2485664 


The London Intsmstkmal RnanciaJ 
RAresqnd Options Bctange 







>" 


>■* 






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— . • 1 

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