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FINANCIAL TIMES 


Invasion of Haiti 
'days away’ as US 


The US-led invasion of Haiti is “a matter of days 
away" and, when it comes, serious fi ghting will be 
over m a matter of hours," US secretary^ state 
Warren Christopher and defence secretary William 
Perry said. US officials ruled out third party media 
tion with the Haiti junta, saying any dealings 
would be about the manner of its departure. 

Page 24; Clinton’s least worst option. Page 9 

Montedison back In the Made Italian 
industrial company Montedison, recovering from 
nrar-eoUapse last year, reported interim pre-tax 
profits of L289bn (5185m), compared with a loss of 
LStiSbn In the first half of 2993. Page 11 

£3«n NHS payments questioned: UK health 
authorities may have exceeded their powers by 
spending nearly £3m ($4.G5m) on termination pay- 
ments for employees, comptroller and auditor-gen- 
eral Sir John Bourn said in a report on National 
Health Service accounts. Page 24 

Footsie suffers largest tall since June 

The London equity mar- 


FT-SE 100 

Hourly movements 



ket fen sharply following 
the release of unexpect- 
edly strong data an the 
US economy. The FT-SE 
100 Index ended the day 
47.6 points down at 
3,065.1, its largest daily 
fall since mid-June. The 
Footsie has fallen nearly 
2.4 per cent this week as 
the first rise in base rates 
for nearly five years has 
left the UK bond markets 
still vulnerable to shocks 
from overseas. London 
stocks. Page 15; Editorial Comment, Page 8; Lex, 
Page 24 

UK advice sought on privatisation: Saudi 
Arabia and South Africa have asked the UK for 
advice on privatisation programmes that could gen- 
erate big fees for British companies. Prime minister 
John Major begins a five-day visit to the two coun- 
tries and Abu Dhabi tomorrow. Page 6 

EU to move slowly on taxtHes accord: The 

European Union, the world’s largest textiles and 
clothing importer, appears ready to take only token 
steps to open its market when it starts implement- 
ing a Uruguay Round accord to liberalise trade in 
tlie products. Page 2; Boost for Brussels aim of con- 
trolling EU trade policy. Page 24 

Harrods prepares shoo retailer for market: 

Harrods Holdings, the group owned by the Fayed 
brothers which includes Harrods department store 
in London, is preparing its shoe retailer subsidiary 
Kurt Geiger for a stock exchange flotation. Page 10 

Palestine economics chief may quit: Ahmed 
Knrei, economics minister in the Palestinian 
authority running self-rule in Jericho and the Gaza 
Strip, said the fragile autonomy process was 
starved of international aid, and indicated he might 
resign. Page 4 

Hurd calls for better Hong Kong liaison: 

Foreign secretary Douglas Hurd said Britain and 
China needed to be “imaginative*’ in improving the 
machinery Tor discussing the colony’s reversion to 
Chinese sovereignty in 1997. Page 4 

Lex group seeks to raise Hyundai sales: UK 

vehicle distribution group Lex Service is spending 
£»m iS31m.» on seeking to increase the share of the 
UK market Tor Korean carmaker Hyundai, whose 
import franchise it controls with Japanese vehicle 
importer 1M Group. Page 7 

Legal throat over export subsufies: NCM. 
the Dutch company which is Britain's largest 
short-term export credit insurer, is considering 
legal action over the European Commission's plans 
to tighten curbs on government subsidies to export 
finance. Page 2 

Time Warner In Indian TV venture: US media 
and entertainment group Time Warner is forming a 
joint venture with RPG Enterprises, one or India’s 
largest industrial houses, to set up a pan-Asian sat- 
ellite-based television network in India. Page 11 

Korean companies set for NYSE listing: 

Slate owned South Korean companies Pahang Iron 
and Steel and Korea Electric Power are expected to 
be listed on Lhe New York Stock Exchange next 
month. Page 11 

Sweden’s Social Democrats hold lead: 

Sweden's opposition Social Democratic party 
appeared to be heading for a narrow win over a 
four party right-centre coalition in tomorrow s gen- 
eral election. Page 2 

Barclays plans phone banking service: 

Barclavs Bank is to launch a national telephone 
banking service Tor personal UK customers wtuch 
will be integrated with its branch network. Page 7 


Companies In this issue 


Aran Energy 
Bailey (CH) 
Bcflerwaro 
BimvrtHo 
Dean {James) 
Fined Earth 

Good 

Haiwmitrson 
HantxJs Holdings 
Mocodos 
Hornby 
HumerPrm: 


7 
11 
24 
11 
10 
10 
2 

24. 10 

Quebecor 10 

70 Oueen's Moat Houses 24 

2 Royal Bank Scotland 11,10 

11 Ryiand 11 

10 Tlphook 11 


10 Hyundai 

10 Kriter 
tO Lasmo 
10 

Macafcm-Glenlrvflt 
Midland Ind News 

I NCM 

11 Next 

II 


ier service and 
ral enquiries call: 


Frankfurt 

<69) 15685150 


WEEKEND SEPTEMBER 17/SEPTEMBER 18 1994 


Sinn Fein challenged to end ceasefire doubts as broadcast ban lifted 

Major offers 
referendum 
on results of 
Ulster talks 


By David Owen and .Emmy Bums 

Mr John Major yesterday moved 
to speed up the Northern Ireland 
peace process by lifting the gov- 
ernment's broadcasting ban on 
Sinn F6in and challenging the 
party to end doubt about the per- 
manence of the IRA's ceasefire. 


But the prime minister bal- 
anced this with a commitmen t to 
submit the final outcome of polit- 
ical talks to a referendum inside 
the province. 

And he gave his clearest assur- 
ance yet to unionists that last 
month’s ceasefire announcement 
was not the result of a secret 
deal, insisting: “The cessation of 
violence has not been bought”. 

Separately, Sir Patrick May- 
hew, Northern Ireland secretary, 
ordered the re-opening of 10 
Ulster border crossings. Mr Major 
said this was “emphatically not a 
political decision” and was taken 
on security grounds. 

Hie abolition of the broadcast- 
ing ban means that the voices of 


Sinn Ffcin’s representatives will 
be heard on Britain's airwaves 
for the first time in almost six 
years. 

Mr Major’s attempt to regain 
the initiative follows mounting 
pressure from Dublin and Ulster 
nationalists over the past two 
weeks for him to respond more 
positively to last month's ERA 
announcement. 

Mr Albert Reynolds, the Irish 
Prime Minister, welcomed the 
moves announced by Mr Major 
and indicated that a s imilar refer- 
endum would be held in the Irish 
Republic. 

Speaking in Belfast Mr Major 
sought to put the onus for 
starting the countdown to Sinn 
Fein's involvement in the talks 
process squarely on republican 
leaders. But the prime minis ter 
made it clear he was still not 
satisfied the IRA had renounced 
violence permanently. Britain 
has promised to start talks on 
how to admit Sinn P6in into the 
political process within three 



Leading the way: John Major, with Sir Patrick Mayhew (right) at Stormont castle yesterday 


months of a permanent end to 
violence. 

The government would “go on 
scrutinising both words and 
actions until... we can sensibly 
make the assumption that the 
ERA truly intend to end violence 
for good,” he said. 

The date on which the three- 
month period started was “in 
S hin F6in's hands.” 

But in Londonderry last night, 
Martin McGuinness, the deputy 
leader of Sinn Fein refused to be 
drawn into declaring the IRA's 
ceasefire permanent. Instead he 
repeated his earlier comment 
that the IRA's ceasefire covered 


“all circumstances”. 

In a clear attempt to reassure 
unionists, Mr Major said his com- 
mitment to a referendum meant 
it would be for the Ulster elector- 
ate to decide whether to accept 
any package of proposals emerg- 
ing from political talks. 

“My co mmi tment means that 
no one can go behind your 
backs,” he said. “It will be for 
yon to decide.” 

In recent months, ministers 
have come around to the view 
that the broadcasting ban had 
become a weapon for critics of 
the government, but they were 
anxious not to antagonise moder- 


ate unionists and Tory back- 
benchers by lifting it prema- 
turely. 

Yesterday's announcement 
comes eight months after Dublin 
lifted its broadcasting ban on 
Sinn Fein, and a day after the 
first full meeting of the British 
cabinet since the summer. 

Meanwhile Mr Reynolds, on a 
visit to Hong Kong, said the Brit- 
ish and Irish governments were 
considering the formation of a 
new. cross-border tourism organi- 
sation to carry oat the work of 
the Irish Republic's Bord Faiite 
and the Northern Ireland Tourist 
Board. 


Markets fall on fresh US inflation fears 


By Tracy Corrigan In London and 
George Graham In Washington 

Further signs of inflationary 
pressures in the US triggered 
fresh falls in the world's bond 
and stock markets yesterday. 

US industrial capacity utilisa- 
tion rose to its highest level for 
mare than five years at 84.7 per 
cent in August, threatening pro- 
duction bottlenecks and higher 
prices. The new figure renewed 
fears of further interest rate rises 
in the US and other markets. 

The US long bond slid 1% 
points, dragging European bond 
prices down sharply- On stock 
markets, the Dow Jones Indus- 
trial Average dropped 25 points 
in morning trading in New York. 
The UK’s FT-SE 100 and Ger- 
many's Dax both fell 1.5 per cent 

“It was a collapse waiting to 


Dollar 

DM per S 
1.55 — 


1-54 - 


10 yr bond yMd Dow Jones 


Percent 


Industrial Average 



1-53 ‘ 

B Sep 1994 16 
Soorc« FT GrapWto 


happen," said Mr Michael Burke, 
international bond analyst at 
Citibank in London. European 
bond prices, which have found it 
extremely difficult to “de-couple" 
from the US market following the 
reversal of the US interest rate 
cycle in February, had been 



under pressure all week, traders 
said. 

Inflation worries also under- 
mined the dollar, which was 
quoted at DM1.5350 in late trad- 
ing after trading above DML55 
earlier in the day. Sterling was a 
beneficiary of the dollar’s weak- 


ness, touching a 16-month high of 
$1.5870 before slipping below 
$1.58 in late trade. The UK gilts 
market, still digesting Monday's 
% point rise in bank base rates, 
was hit by news that the August 
public sector borrowing require- 
ment reached £3.2bn, substan- 
tially higher than market expec- 
tations, reviving worries about 
potential funding difficulties. 

Meanwhile, interest rate con- 
cerns and weak bond markets 
were seen capping any potential 
recovery in share prices. 

The Federal Reserve said that 
US industrial production rose by 
0.7 per cent in August, and 
announced upwards revisions to 
production in the three preceding 


months. Capacity utilisation is 
believed to be one of the main 
indicators looked at by Fed gov- 
ernors when assessing their mon- 
etary policy, and August’s higher 
rate led some economists to 
argue for an earlier interest rate 
move. 

“We expect the Fed to tighten 
short-term rates another 25 basis 
points in mid-October,” said Mr 
Joseph Lire, an economist with 
investment bankers S.G. War- 
burg In the US. 

Disappointment at £3~2bn budget 
deficit, Page 6; Currencies, Page 
13; London stocks. Page 15; 
World stocks, Page 21; Lex, Page 
24; Markets, Weekend II 


Russia set 
to decide 
dangerous 
next step 
in reforms 

By John Lloyd in Moscow 

The Russian government is 
poised to decide on the next and 
most dangerous step in its three- 
year old reform process. Going 
ahead would mean launching a 
full attack on inflation, closing 
many obsolete factories and 
starting to create a working 
social security system - with the 
aid of np to $18bn (£U.6bn) pro- 
vided through the International 
Monetary Fund. 

The scale of the transforma- 
tion now being debated in the 
government and with IMF 
experts would be larger than 
anything yet attempted and 
wonld risk creating social unrest 
and political instability. 

However, it could also reduce 
Russian inflation - which was 
r unnin g at 4 per cent in August 
- to west European levels and 
provide the basis for sustained 
growth for the first time in more 
than a decade. 

The government's ambitions 
are partly revealed in an article 
in today's Sevodnya newspaper 
by Mr Konstantin Kagalovsky, 
the Russian director on the 
Fund's board. Mr Kagalovsky, 
whose article was approved by 
Mr Victor Chernomyrdin, the 
prime minister, lays out requests 
the government is already mak- 
ing to the IMF and other western 
institutions or plans to make at 
the annual IMF meeting in Mad- 
rid early next month. 

Though Mr Kagalovsky does 
not total them, they would 
amount to SI5bn-S20bn. If 
agreed. It would be a massive 
commitment to one country and 
to a government's agreement to 
reform. 

It would also increase criti- 
cism that the Fund is already 
relaxing its criteria too much in 
order to accommodate Russia. 
Earlier this week, Mr Mark Lus- 
ser, head of the Swiss National 
Bank, warned that the IMF 
risked “financial and moral 
ruin” if it continued to waive its 
normally strict conditions. 

The Russian government 
wants to increase its “stand-by" 
borrowing facility from $4bn to 
over $5bn by raising the percent 
age of the $6bn quota it can bor- 
row from 68 per cent to to 90 per 

Continued on Page 24 


Major pledges lottery awards 
will not replace public spending 


By Raymond Snoddy 

The strongest assurance yet was 
given by the prime minister yes- 
terday that the billions of pounds 
to be raised by the National Lot- 
tery for good causes would not 
replace government spending. 

Mr John Major told the English 
Heritage Conference in London: 
“On the government’s side - 
Treasury, please note - we will 
make no case-by case reductions 
on conventional public spending 
programmes to take account of 
awards from the lottery." 

The lottery, due to be launched 
on November 19, could raise £9bn 
for good causes over the next six 
years. 


“The money raised by the lot- 
tery will not replace existing gov- 
ernment spending." Mr Major 
emphasised in response to a long 
standing fear. 

He envisaged that the lottery, 
to be ran by the Camelot consor- 
tium, would mainly aid capital 
schemes. “Projects must benefit 
primarily the public good rather 
than private gain, and must be 
financially viable," he said. 

The prime minister said that 
every man and women in the UK 
could benefit from the lottery 
proceeds and not just “the great 
and the good”. He was deter- 
mined that the whole country 
would share in the opportunities 
once only available to a privi- 


leged few. “I strongly believe 
man. cannot live by GDP alone,” 
the prime minister said. 

The money raised by the 
National Lottery will go equally 
to the arts, charities, a millen- 
nium fund, the national heritage 
and sports. Mr Major said the 
designated distributing bodies 
would deride where the money 
would be spent and the money 
would not be under government 
control. 

Ms Marjorie Mowlam, shadow 
National Heritage secretary, said 
yesterday she was still worried 
that some ministers would have 
few qualms about using Lottery 

Continued on Page 24 


STOCK MARKET INDICES 


FT-SE 100: WKSS.1 

Yield 4.13 

FT-SE Eurotrack 100 

1,358-91 

FT-SE-A AB-Shaie .. 1J538.71 

AJikfcfli 1R79&26 

New York lunchtime 
Dow Jones Ind Aye 3.92&31 
SAP Composite 471.17 


H7.8J 


(-9 63) 
(-1.346) 
(-133.13} 

(-2657) 

(-3A4J 


■ LONDON HOMEY 

3-mo Interbank 5}}** (5%W) 

Liffe tang gilt fut_D«c 98*4 (Dec 99&) 


■ l)£ LUNdtTBHE RATES 


■ STERLmO 

Federal Funds: 



New York lunchtime: 

3-m Tress BHs: YU 

4.708% 


S 

1.683 

Long Bond 



London: 

Yield 

.7.777% 


5 

1*584 (1.5639 

■ NORTH SEA OIL tAima) 


DM 

2^4366 (3-1183) 

Brent 15-day (Aug)- 

-.815184 

(15.77) 

FFr 

032S8 (82741) 




SFr 

2.0212 (2.0076) 

■ Odd 



Y 

156*586(155281) 

New Yoric Coma* (Dec) _S3B1£ 

(391 S) 

£ Index 79.8 (79.2) 

London 

—*380* 

(38425) 




■ DOLLAR 

Now York lunchtime: 
DM 1.5332S 
FFr 8248 
SFr 1.273 

Y 98.75 
London: 

DM 13376 (1.5467) 
FFr 82562 (5292) 
SFr 1.276 (1284) 

Y 86455 (99 SB) 

S Index 620 (62.4) 

Tokyo dose Y 99.16 


MBf gon d New 3-4 


UK NWS 

6,7 



PMtunw 




Lstm 

9 


Man m ttw News -8 

Cnmpanht 

IK 10,11 

ML Companies — 11 


FT-SE Actuaries . 


-15 


FT iftow Actuaries 21 

Rjcm'i EstongM 13 


Gold Makers — 

CfH.T/ rv iic i4 

i2 

— H 

World Cemmodties . 
Wd Stmt 

12 

-20,21 

Loncton SE . ... 

IS 


-2021 

LSEDeaSngs — 

14 

Sumy 


Managed pjnts, 

16-19 

Serious hwsttre Guide _ — 

Mswy Manana - 

13 

Sepaate section 


Recent Issues — 

21 




StnEntrsosn . 


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LONDON - PARIS - FRANKFURT - NEW YORK - TOKYO 


- yny TIMES LIMITED 1994 No 32.474 Week No 37 



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2 


FINANCIAL TIMES WEEKEND SEPTEMBER 17/SEPTEMBER 18 1994 


NEWS: EUROPE 


. ; v 


EU to move Social Democrats’ leadparrof^^s poll looms 

W w By Hugh CH fitwny in gla party. ?»nrt prime minister months-Iong predictions of a dag. of the Environment party, -complacent, tired and afraid- growing goverament debt. 

0 I AIT7 Ur /\¥7Al i StocMwlni Carl Blldt's four-party right Social Democratic victory in .which failed to get elected- He isMyto seek analfl- : J^LT 0 ^ to ^ 

Wlfl Wf I \I I IV f- 1 1 centre coalition was . finely the election. 190L . '?* . -spice wxfli the Liberal party. at to toe Left PW »dto t 

CjJLvr ffl T Vr T vl Sweden's Social Democratic poised, ■ :■-* With poflstere wpartfag' as < . % » v aeams likely, the for- , Resent wrt-at Mt Boat's coah- 

ft/ Party appeared yesterday to be ~ many. as 16 pa: cast erf- voters VmercCTrimnfart Left party also ffin. to aferoM befog dependent among public sectorwom 

-m headfagfora narrow win in RR5S7ffi?T3 still undecided, much was yholdkjfs placp inpariiamfcit, «§n the left and toe greens for a anxious about the ^rty^(» 

i 1 ?! ^ . m -J tomorrow's general election, " •*** thought to depend on the out- the^present coahtion would'be -majority. ‘ ■ nutment to cot some welfa 

T| nrilC Ql*l*ril II but a victory that once seemed One poll showed the govern- came last night of a marathon far short of a parliamentary -The Social Democrats held spending. ^ 

1 B 111 flWM M \M. assured has been torown into - meat parties leafing toe Social three-hois- television debate .majority eventottouistripstfre. .an opinion poll rating of more But they have also begun. 

some tiouut oy a steady ran m 
its opinion poll ratings in the 
past two weeks. 

Yesterday, a dutch of polls 
indicated the balance between 
toe opposition Social Demo- 
crats, the country's largest sin- 


By Guy de Jonquftres, 
Business Editor 

The European Union, the 
world's largest textiles and 
clothing importer, appears set 
to take only token steps to 
open its market when it starts 
Implementing a landmark Uru- 
guay Round accord to liberal- 
ise trade in the products from 
the start of nest year. 

Though permissible under 
the Uruguay Round, the 
approach currently favoured in 
Brussels was described by one 
European government official 
yesterday as “against the spirit 
of the Gatt” 

The Uruguay Round agree- 
ment brings textiles and cloth- 
ing for the first time under 
Gatt rules and commits the 
body's members to eliminate 
by 2006 the Multi-Fibre 
Arrangements, which tightly 
restrict toe $240bn (£i54bn) 
annual world trade in the prod- 
ucts. 

Under the deal, countries 
have to subject at least 16 per 
cent of their t e xti le s and cloth- 
ing imports to Gatt disciplines 
in the next three years. This is 
the first of three phases in the 

planned dismantlin g of the 20- 

year-old MFA. 

However, toe Commission is 
proposing - with apparent 
backing from most EU states - 
to carry out this commitment 
in a way which would leave 
the range of products covered 
by MFA quotas virtually 
unchanged until 1998. 

The Commission plans to do 
tins by subjecting to Gatt rules 
products which are mostly 
exempt from MFA quotas. 
Many win be chosen from a list 
which includes items such as 
hats, umbrellas, car seat belts 
and parachutes, but excludes 
mass-market products such as 
cotton garments. The EU 
imported about $51bn of tex- 
tiles and clothing products in 
1992, mostly from developing 
countries. 

The World Development 
Movement, a Third World 
lobby group which has ana- 
lysed the Commission propos- 


als. estimates they would 
result in toe EU lifting restric- 
tions on only 0.1 per cent erf 
products on which it imposes 
quotas. It said toe EU's move 
was "a travesty” of the agree- 
ment to phase out the MFA. 

Britain, Germany, the 
Netherlands and Denmark are 
pressing for a more liberal 
approach but are strongly 
opposed by southern European 
EU members, which have polit- 
ically powerful textile industry 
lobbies. 

Gatt members must submit 
final proposals for implement- 
ing the accord to the organisa- 
tion by October 1. The US, 
which also has many textiles 
quotas, has yet to announce 
how it plans to meet its Gatt 
commitment 

But President Bill Clinton 
has said it will not move 
quickly to lift curbs, and many 
US textiles producers and 
importers believe his adminis- 
tration will adopt an approach 
similar to that of the EU. 

Countries which do not 
remove MFA quotas will none- 
theless be required by the Gatt 
to gradually lift ceilings on 
imports covered by the restric- 
tions. Japan and Switzerland 
are the only industrialised 
countries which do not impose 
MFA quotas. 

Though heavily influenced 
by domestic political motives, 
tough EU and US attitudes are 
partly intended to press devel- 
oping countries to open their 
texti les and clothing markets. 
Officials in Geneva say the two 
trade powers are co-ordinating 
their efforts closely. 

Under the Uruguay Round, 
most developing countries are 
required to lower the . often 
punitive tariffs they intpraM an 
imports. However, India and 
Pakistan, two of the world’s 
leading textiles ex p or te rs, have 
so far balked at liberalising 
their import regimes. 

Producers in the US and 
Europe believe that they could 
sell large volumes of clothing 
to middle-class consumers in 
India and Pakistan if they had 
freer access to their markets. 


gla party, and prime minister 
Carl Btldt’s four-party right- 
centre coalition was ..finely 
poised, ■ 


One poll showed the govern- 
ment parties leading the Social 
Democrats by 4341 -per cent to 
40.4 per cent \i 

Although the coalition 
trailed by up to five po in t s in 
three other polls, 'the results 
were enough to give MrT3fidt 
some hope of defying the 


months-long predictions of a 
Social Democratic victory in 
the election. n 

With pollsters reporting' as 
many i as 16 per cent of- voters 
still ondecldedr much’ wan 
thought to depend on the out- 
come last night of a marathon 
three-hour television, debate 
involving the leaders of all 
eight parties contesting the 

plpftifBV . 

However, a tough obstacle 

farfng Mr Bfidt in his push fOT 

a last-minute victory was the 
near certain return to the Rika- 


dagiofthe Environment party, 
>which failed to get elected 
. . in 1991. . - . 

; s, as - t seams likely, toe far- 
V mer communist Left party also 
yhold&jfs phwy in parliament, 
the*present cohfitum would'be 
far ■ shor t of a parliamentary 
majority even'd tt outstrips toe. 
SOdMUemocrats. 

:.- That makes Mr Ingyar Caris- 

aon. Social Democratic leader, 
-the cQntinpad fhvmn ftato farm 
thenext gover n ment, despite a 
lacklustre campaign tn which 
he has appeared alternately 


! V \ -J. ' -. 

: tn'-.- '■ - - 

- wmiplitfM^ tired and afraid. 

. He is likely to seek an alfl- 
. -ghee wife the liberal party, at 
, present part-of Mr Bfidifs coali- 
. 13bn, to &oid being dependent 
<§n the left and the greens for a 
-majority. . 

“i The Social Democrats held 
.. .an opinion poll rating of more 
/ ttan 50 per -cent as little as 
three weeks ago, but have been 
ffip pin g rineq they unveiled a 
•SKriJlbn package of tax 
■ increases and spending" cuts 
to tackle the country’s big 
budget deficit' and fast- 


growing government debt 

They have lost votes heavily 
to toe Left party and to the 
Environment party, apparently 
among public sector workers 
anxious about the party's com- 
mitment to cut some welfare 
spending.- 

But they have also begun to 
lose scons votes to government 
parties both over their plans to 
raise- Income taxes and a spe- 
cific proposal to cut same bene- 
fits to parents taking time off 
work to look after sick chil- 
dren. ’ 


Heracles mixes polities \vi|h the cement 

Kerin Hope on the political fallout after former prim&-®flm$ter Miisotakis’ indictment for bribery 


T he travails of Heracles 
General Cement, 
Greece’s leading pro- 
ducer and Europe’s largest- 
exporter of cement, have all 
the makings of a modern 
Greek myth. 

Thursday’s indictment by 
paifiament of Mr Constantine 
MHsotahs, the formes conser- 
vative prime minister, on 
charges of taking a $22 .5m 
(£l4.4m) bribe in the sale of the 
state-controlled cement pro- 
ducer in 1992 to Caloestrazzi of 
Italy, underlined the w fay i to 
which Heracles has become 
Mitnngfad in politics over the 
past decade. 

B ari i er this year, Mr Mich- 
alls Vranppoulos, fanner gov- 
ernor of the National Bank and 
tire government’s mam negoti- 
ator in the disposal of Her- 
acles, was assassinated by 
November 17. a Greek terrorist 
group, for his part in the sale. 

The privatisation of Heracles 
has proved just as controver- 
sial as its riatinnflliaaHnn in 

1983 by Greece's first socialist 
government. At that tima Mr 
George Tsatsos, the company’s 
chief executive, fled Greece 
together with other family 
memhers on the board of direc- 
tors to avoid-facing charges of 
criminal fraud that in. theory 
carried the death penalty. Most 
charges were dropped. 

Now Mr Miisotakis, an oppo- 
sition backbencher, faces trial 
by a special criminal court. 
Two other conservative former 
cabinet ministers involved in 
the Heracles disposal, Mr 




November 17. a Greek terrorist Mitso takig bribe charge 
group, for his part in the sale. 

The privatisation of Heracles breach of trust charges, and 
has prayed just as controver- will be tried at the same thnA 
sial as its nationalisation in Mr Andrianopoulos, who as 
1983 by Greece's first socialist industry minister was the con- 
government. At that time, Mr servative government’s kee- 
George Tsatsos, the c ompany 's nest exponent of privatisation, 
chief executive, fled Greece said yesterday: “The whole 
together with other family procedure of the parliamentary 
msmhprs on the board of direc- inquiry has been absnrd. This 
tors to avoid facing charges of is enoug h to drive me . out of 
criminal fraud that in theory politics.” 
carried the death penalty. Most On the Athens stock 
charges were dropped. exchang e, shares in Heracles, 

Now Mr Miisotakis, an oppo- depressed by a prolonged 
sition backbencher, faces trial recession in the Greek con- 
by a special criminal court, structum industry, picked op 1 
Two other conser vative former, per cent as the imHc t maut pro- 
cabinet ministers involved in cedUre neared completion. Nor 
the Heracles disposal, Mr have the company's results 
Andreas Andrianopoulos and ^ been affected by .political, 



One of Heracles’ main cement factories: the group is also involved tn cod marfceting. padcaging.-qnanying Mid idmit aectlen 


Mr Ioannis Paleocrassas, were 
also indicted by parliament, on 


wrangling. Last year Heracles 
posted a 42 per cent increase 


FINANCIAL TIMES 


in pretax profits last year to 
Dr7.3bn (£19^m), while turn- 
over was up by 11.7 pm- r»nt to 
Dr71hn. It retains a share of 
around 42 per cent In Greece’s 
increasingly competitive 
cement market.. 

The conservatives’ view is 
that Heracles has become a 
political football as fee govern- 
ing socialists seek revenge on 
Mr Mitsotakis for bringing Mr 
Andreas Papandreou, then the 
opposition leader, to trial in 
1991 on corruption charges 
connected wife the. $200m 
(gi2Rm) Bank of Crete , embez- 
zlement scandaL 

Mr Andrianopoulos rejects 
an - allegation accompanying 
.-the indictment, that Hexades 
was s&d too cheaply, painting 
’ puf feat at : |42ian, the price 
was at the high end of a series 
of valuations carried out by 
Morgan Stanley, fee invest- 


ment hank acting as the gov- 
ernment's adviser in the sale. 

Mr MHmtaki* and his ran. 

servative colleagues were also 
hwid responsible by the parlia- 
mentary committee investiga- 
'.ting fee foe fee disappear- 
ance erf a mrmhpr of paintings, 

• part of Heracles's laige collec- 
tion of modem Cheek art, from 
fee boardroom suite. 

Yet whatever the shortcom- 
ings of fee sale, fee Greek r 

State manag ed to hold {HI tO a 

substantial stake in the com- 
. . p a ny , as Calcestruzzi formed a 
joint venture wife fee state-, 
controlled National Bank of 
' Greece, Cal-Nat; in order to 
.. acqufre JHerades/ in which toe 
"bank holds ft 68 per cent share. 

Heracles, founded by the 
‘[TaifioB'lfohfly'bcftie tile first 
woirld war, expanded rapidly in 
- the late 1970s, opening a sec- 
ond ramawt q uarr y and a deep 


water port, an the^fsland- of 
Euboea and&creastog^ijeet 
of tiAk carriers to hedp boost 
exports to fee Middle East and 
North Africa.- r ~- 

But the company borrowed 
heavily: to finance its hew 
tevestm^its, w Me profit mar- 
gjhs^jfere shrinking. fee 
. time .fee Socialists flgchfcfl to 
nationalise Heracles , ite, share 
capi^ to deft jaito was 1 to 
• ;■/ 

: . Moreover, toe Tsatsos family 
controlled only 20 per cent of 
toe shares, against 35 per cent 
for National Bank. A total of 
Dr27hn in dfet was converted 
to equity, diluting the Tsatsos 
beddings stiD further, and new 
management was appointed by- . 
the government 


companies .in the conserve 
tiyes5 privatisation portfolio, it 
was ah.attractive buy. 

One local analyst said: “Cal- 
cestruzzi needed a cement sup- 
ply to back up its ready-mix 
and construction equipment 
leasing business. It toad cov- 
eted Heracles for some time, 
building up a shareholding 
£qom the free float well before 
fbjF company was put up for 


However, Heracles did not 
escape being drawn into the 
Ferruzzl group's own- political 
troubles, through, a series of 
allegations that the Giyek com- 
pany was used as a channel for 
pay-ofls matte to Italian politi- 
cians, 

Italian magistrates have 


By^he l tate‘ , 198(Js 1 however; ’ been in tourii wife the Greek 
sacks was making wMaWn judiciary over feis and have 
profits again. As the largest questioned several Ferruzzi 
and one of only a few -healthy officials. 


FT EXPORTER 



Poles clash over price of success 

Christopher Bobinsfci on the wrangling over rising money supply 


P oland's steep growth 
carve coupled with 
inflows of foreign, capital 
has the country's economic 
managers straining to catch 
their breath jmd has led the 
government and the NBP, the 
central bank, into an unprece- 
dented public clash over how 
best to deal with the resulting 
increases in the money supply. 

The row comes in the wake 
of government suggestions 
that the bank should be given 
an advisory council nominated 
by politicians. The bank’s 
redoubtable chairman, Ms 
Hanna .Gronkiewicz Waltz, 
fears that this will lead to a 
curtailing of fee NBPs inde- 
pendence. The government 
would also like to see the 
bank’s supervisory functions 
hived off into a separate inde- 
pendent body. 

Matters came to a head ear- 
lier this week when the NBP, 
concerned about the growth in 
reserves, slowed the rate at 
which the zloty is devalued 
each month to keep exports 
competitive from L6 to L5 per 
cent. The move angered Mr 
Grzegorz Kolodko, the deputy 
premia: in charge of the econ- 
omy ami ftnanra minister, as 

the bank firiled to make the 1 
per cent cut in its 33 per cent 
refinancing rate the govern- 
ment wants to see to lower the 



Kolodko: angered over slowing 
of zloty devaluation 

cost of servicing the public 
debt 

The protagonists later pub- 
licly traded arguments in par- 
liament with the g o vernment 
charging that the bank had 
exceeded its prerogatives when 
it took the d evalua tion deci- 
sion without getting treasury 
agreement. Ms Gromkiewicz 
Waltz replied that inflationary 
pressures meant action had to 
be taken quickly and interest 
rate cuts would have to wait 

President Lech Walesa, who 
nominated Ms Gromkiewicz 
Waltz to the Central Bank, has 
also weighed in. *Tm not an 
economic expert but I think it 
is Ms Gromkiewicz Waltz who 
is in. the right” he said. 


The statement adds a politi- 
cal dimension. The present 
government, elected last year, 
is a coalition -of the fotiner 
communist SLD and the PSL 
Fanners Party, emee allied to 
fee communists. The presi- 
dent, who femes a Solidarity, 
background ? with Ms 
Gromkiewicz Waltz, faces an 
election next autumn. T hope 
that wb are dealing with noth- 
ing other thar> a dispute about 
’e c o nomi es.” said Mr Kolodko 
in parliament on -Thursday, 
hinting that opposition to 
interest rate cuts could be 
aimed at slowing growth. 

Indeed fee coalition desper- 
ately needs growth to continue 
keeping the budget deficit 
within the tight parameters 
.pledged to the IMF in return 
for. a 3800m (£51lm) standby 
accord. Equally important for 
the coahti o ii is the need to boL 
star its support ahead of the 
presidential election. 

Happily for tiie moment the 
economy is set to grow by 4£ 
per cent this year, wife indus- 
trial output up by 1ZB percent 
in fee first flight- mouths. Also 
monetary Hows and indicators 
are all an target, which shows 
that both the treas ury and the 
NBP are within IMF guide- 
hoes. 

However, . foreign reserves 
have grown, faster than expec- 


ted to around $llbn because of 
receipts from cross-border 
trade and growing foreign 
trade. Exports fa the first half 
of the year are up by 15 per 
cent to $7.7bn. with imports in 
the same period actually fall- 
ing by T_4 per cent to 295bn 
compared to the same period 
last year. 

This performance owes much 
to the recovery in nmghbour- 
. ing Germany - which accounts 
for a third of Polish sales 
abroad - and to east Gfemans 
shopping in Poland- The 
reserves have also- been 
boosted by traders and tourists 
from fee former Soviet Union 
buying ocmsuny »r goods Ho sell 
at a profit at home. . . 

It is the swelling reserves 
and mounting corporate 1 bank 
balances from growing- sales- 
and productivity gains feat are 
causing the NBP concern and 
have provoked the stalemate 
on interest rates. . 

Western bankers, who, have 
just si g n ed an accord cutting 
Poland's $14bn commercial 
debt by alm ost half, .remain 
sanguine. - Ironically as fee 
country struggles witJE the 
effect of growing coital 
inflows, the deal which reduces 
Poland's overall indebtedness 
to $38bn should lead to foreign 
investment worth an addi- 
tional $ibn a year. 


Reinsurance row grows 
with talk of legal action 


FT EXPORTER: Autumn Issue - October 5th 

The latest issue of the FT EXPORTER, Europe's leading export review will appear with the 
Financial Times throughput the UK and the Continent, on October 5th. Packed with advice, 
information and case studies the FT Exporter is a "must read" for all current or potential exporters. 

To receive further information, please contact 


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Td: +44 (0) 71 8734882 


Sally Beynon 

Fax: +44 (0)71 873 4610 


By Gkqr de Jonquferes 

NCM, the Dutch company which Is Britain’s 
largest short-term export credit insurer, is 
considering legal action over the European 
Commission’s plans to ti ghten curbs on 
gover n ment subsidies to export finance. 

The possible action Is fee latest twist in a UK 
campaign to secure changes In fee proposed 
regulations, which. It is feared, would unfairly 
p en a l ise British credit insurers and exporters . 

Mr Colin Foxall, NGKTs manughip dire c tor, 
has written to Mr Karel Van Mtert, the 
European competition commissioner, saying 
that part of the draft EU regulations on 
shortterm credit fasurancnamld give rise to a 
legal challenge. 

NCM Is concerned by fee assertion tint UK 
government financing of a small part of the 
country’s reinsurance esposnre constitutes a 
state aid and is therefore anti-competitive. 

Britain and NCM have insisted that the 


flnamtoin, through the Export Credit Guarantee 
Department, & available purely on a 
contingency basis to ensfafom against the risk of 
sodden shortages of reinsurance capacity. 

The government also argues that the UK’s 
reforms of its rdnsnrance market have brought 
it closer than any other EU member to the 
foe-market operation which fee commission’s 
proposed rules are intended to encourage. 

The UK says the current proposals could lead 
ei ther t o the complete withdrawal of 
government support, threatening fee stability 
of the reinsurance market, or amid increase 
the scope for government subsidy. 

Ur Van Mtert Is sympathetic to these 
arguments. He agreed last July to delay 
publication of the final rules until Qds autumn 
whil e fee. commission tried to accommodate 
UK’s objections. 

However, It is understood fee commission Is 
still not prepared to do more than offer the UK 
a waiver from tiw Tides untfl -1997. 


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FINANCIAL TIMES WEEKEND SEPTEMBER 17/SEPTEMBER 18 1994 


§ 


NEWS: INTERNATIONAL 


INTERNATIONAL news digest 

Japanese chip 
market opening 

Sj °5 lce of us tade representative Mickey Kantor revealed 
tnat foreign manufacturers accounted for a record 2L9 per 
cent or the Japan's computer chip market in the second 
quarter after 20.7 per cent in the first This marked the third 
straight quarter that the foreign share of Japan’s semiconduc- 
tor market topped 20 per cent - the level set as a goal in the 

controversial US-Japan microchip pact In 1393. foreign compa- 
nies accounted for 19.4 per cent of the $24.7bn (£15Jbn) market 
for nueroctupS' used in everything from cars and computers to 
nign-tech toys. The quarterly semiconductor data are closely 
watched as one barometer of fragile US-Japan ties. Mr Kantor 
welcomed the rise in foreign chip sales in -fa pan, but warned 
againstcompl acency . The report came as Tokyo reported that 
although Japan’s vast trade surplus shrank sharply in August, 
its surplus with the US rose to $3.49bn from $3.42bn a year 
earlier. Reuter, Washington 

Move on S Africa exports 

South Africa has announced plans to restructure its controver- 
sial R2bn (£285m) a year General Export Incentive ffahamp 
from next April and will scrap it completely by the end of 1997. 
Under the new cabinet-approved plan, ail subsidies currently 
paid out to exporters under GETS will be phased out over three 
years- The planned cute are broadly in line with recommenda- 
tions by the National Economic Forum, a tripartite group 
incorporating representatives from business, government anrf 
labour, but have been strongly opposed by the paper arid iron 
and steel industries. The moves follow tariffte cuts on various 
imported goods announced last month and are part of a 
s us t a i n ed effort by the government to increase the competi- 
tiveness of local industry. GE3S was introduced five years ago 
as part of a programme to wean South Africa from its overde- 
pe n denoe on primary commodity exports by offering a wide 
range of subsidies for the export of manufactured goods. Mark 
Shaman, Johannesburg 

Spain may ease bond curbs 

The Bank of Spain said yesterday it was studying a relaxa tion 
of its strict accounting regulations on bond portfolio provision- 
ing by domestic financial institutions, in a move that should 
sharply increase home demand for government paper. Pres- 
sure for easier rulings has romp from both the domestic 
banks, which have suffered losses in their trading operations 
this year, and from the treasury, which is becoming concerned 
over net medium- and long-term bond sales by non-residents. 
Government paper held by Spanish banks in active trading 
portfolios currently has to be marked to market on a monthly 
basis and losses must be fully provided. The regulations are 
less aggressive for bonds held in investment portfolios but are 
also considered to be more stringent than those imposed by 
other central banks. Tom Bums, Madrid 

French ministry waste criticised 

A confidential report by an Independent Court of Auditors has 
criticised the French foreign ministry for waste, bad account- 
ing and steeply rising costs. However, the foreign minister, Mr 
Alain Jupp£, maintain ed that the report referred to the period 
before his appointment Warning his Socialist predecessor. Hie 
report leaked to the weekly magazine L'Express, said the costs 
of official travel and the receipt of visiting VIPs by the French 
president and prime minister soared from FFr81.5m (£9.8m) in 
1987 to FFr39 lm in 1991 before falling to FFrl85m in 1992. In its 
defence, the foreign ministry said that while these costs were 
part of its budget, it had no control over travel by the presi- 
dent or the prime minister. The report concluded that large 
amounts of cash were unaccounted for, and that the ministry 
had no central supervision or computer records of payments. 
Reuter, Pom 

West snubs Russian proposals 

A widening gap between Russia and the west over security 
structures in Europe was left unbridged by talks In Prague 
yesterday intended to prepare for the December summit of the 
Conference on Security and Co-operation in Europe (CSCE). 
Russia wants to establish a 10-nation CSCE steering commit- 
tee modelled on the UN Security Council, able to issue man- 
dates for peace-keeping operations. At the Prague meeting of 
senior officials from the 53 CSCE member states, most western 
officials flatly rejected the Russian proposals on the grounds 
that they would diminish the status of Nato. In a separate 
dispute. Russia wants maximum freedom of action for its 
military activities in the southern republics of the former 
Soviet Union, while western countries are reluctant to give 
Moscow carte blanche. Bnux Clark, Defence Correspondent 

Ukraine delays N-treaty vote 

Striking a blow to US nuclear disarmament efforts, Ukraine 
will not accede to the Non-Proliferation Treaty CNPT) this 
year, said the country’s parliamentary chairman, Mr Alexan- 
der Moroz. He indicated a vote would not come until January, 
adding: “We cannot be indifferent to the NPTs shortcomings." 
Ukraine has been pressed by the West formally to declare 
itself a non-nuclear state under NPT, and President Leonid 
Kuchma was expected to ask parliament to vote on the treaty 
next month. But Mr Moroz's opposition makes that unlikely. 
Ukrainian leaders complain that the US has delivered less 
than $lOm (£6.4m) of $350m promised for d ism an t l em ent as 
part of a January agreement to deploy Ukraine's nuclear 
arsenal to Russia. They say the US keeps moving the target 
for smooth relations and economic aid, from the January 
agreement to the NPT. Matthew Kammsfd, Kiev 

Hope for Peru bank debt talks 

Creditors to commercial banks in Peru are set to reopen 
formal negotiations regarding the restructuring of *7hn of 
commercial bank debt, a senior banker said yesterday. Mr 
William Rhodes, viceohairman of Citibank, which beads the 
country's bank advisory committee, is to meet Peru's minis ter 
of the economy around the time of the International Monetary 
Fund’s Madrid meeting early next month. The way for reope n- 
ing talks has been cleared by a recommendation from a 
Peruvian congressional committee this week that loans made 
by two US banks - American Express and Chemical Bank - 
should he recognised. Peru’s Congress is expected to discus 
the recommendation on the loans next week, and the commit 
tee's view is expected to have a strong bearing on the decision. 
The two banks claim some $38m. as well as perhaps twice that 
amount in unpaid interest The loans were repudiated by the 
1985-90 government of Mr Alan Garcia. Stephen Ftater, Loan 
America Editor 

US blocks extradition 

A US federal judge blocked tlie extradition of an escaped Irish 
Nationalist and ordered his immediate release. James Joseph 
Smvth escaped from Northern Ireland s Maze prison in 1983, 
K S uggest jailbreak in British tustory. US DUtt 
judge Barbara Caulfield rejected ^extradition requestafter 
finding that Smyth would be punished on the bads of tos 
MlS opinions if returned to Northern Ireland. Smyth. 40. 
^ released without DaiL Federal prosecutors represwibng 
Sic British government are expected to appeal against the 
decision, flruier. San Francisco 

CEPA Indonesian power deal 

Consolidated Electric Power Asia, a unit oIHong KraE's 
Hopewell Holdings, signed a 30-year agreement to sell elecHc- 
ih’thm a plmmed jam power plant projoet to tatoiiestos 
stateowued electricity 

CFPA plans to build, own and operate two 660MW coai-area 
S-nitoTSmite on the north coast of ^ dueto rame on 
Eh/ii PLN agreed to buy electricity from Panjung 
Sri ^ S7 665 wr kW/hSrfor the first six years, $7388 for the 
* ££ that and S5.SSS for the next 18 years. 

Manuctn Saragtxta, Jakarta 


Subtle media manipulation has helped to boost Cardoso, the favourite in Brazil’s election 

Rightwinger 
wants role 


The candidate and the TV magnate 


Angus Foster looks at a real-life election ‘novela’ 
that is prompting complaints from opposition 


Brazilian TV, better known for 
scre ening scantily dad w omen , 
is running a strange commer- 
cial. Paid for by one of the 
country^ largest construction 
companies, the advertisement 
talks of the need for improve- 
ments in education and advises 
viewers to elect a president in 
next month's elections who 
“knows how to teach”. 

The commercial seems a 
clear attempt to lift support for 
Mr Fernando Henri que Car- 
doso, the former finance minis- 
ter and government candidate 
Mr Cardoso was a university 
professor while his rival, the 
left-wing Mr Lulz InScio Lula 
da Silva, barely finished high 
school and has a slight lisping 
accent, which is the target of 
middle-class derision. 

Such support for Mr Cardoso 
from business «nri the media 
has helped consolidate his lead 
in opinion polls and led to com- 
plaints from Mr da Silva that 
the elections are no longer fair. 
The claim seemed to gain 
weight when Mr Rubens Ricu- 
pero was forced to resign as 
Brazil's finance minister ear- 
lier thic month after remarks 
he made in a private interview 
woe broadcast by mistake 

Mr Ricupero let slip that TV 
Globo, which is sometimes 
watched by half the country’s 
157m people, was using him 
regularly on programmes as a 
way of supporting Mr Cardoso. 
Globo's owner, Mr Roberto 
Marinho, has not concealed his 
support for Mr Cardoso, nor 
his unease with Mr da Silva. 

Mr Ricupero's indiscretion is 
embarrassing for Globo, espe- 


cially since the station wanted 
to regain credibility lost when, 
in 1989, it helped elect former 
president Fernando Collor, 
who later resigned amid cor- 
ruption charges. 

Mr Cardoso's extraordinary 
rise in the polls, from about 20 
per cent in June to more than 
double that figure today, would 
not have been possible without 
the Real Brazil's new currency 
launched on July L Mr Car- 
doso planned the new currency 
when he was finance minister 
before Mr Ricupero. Monthly 


‘These elections 
are not as free 
and fair as we 
would like 5 


inflation fell from 50 per cent 
to 5 per cent, giving poorer 
wage earners an apparent 
increase in purchasing power. 

Mr Cardoso has also bene- 
fited from the optimism which 
has swept Brazil since the cur- 
rency’s launch. This is partly a 
reaction to 10 years of eco- 
nomic and political bad news. 
But it has also been manipu- 
lated by the media, in a coun- 
try where only 30 per cent of 
Brazilians complete eight years 
of primary school and where 
in some states illiteracy is 
above 40 per cent 

TV Globo has been scrupu- 


lously fair in the time it gives 
each of the main candidates in 
its evening news broadcasts. 
But the station then fills the 
rest of its reports with feel- 
good news stories about the 
success of the Real, thereby 
lifting Mr Cardoso’s credibility. 

Alter the news comes the TV 
“novela", or soap opera. Nove- 
las are extremely popular in 
Brazil and play an important 
political role. Globo launched a 
new novela in July to coincide 
with the election. Called 
“Minha Patna” or “My Coun- 
try", it is an upbeat tale of 
success and love in a Brazil 
with a future. This is in sharp 
contrast to the highly critical 
vision of Brazil which Globo 
ran ahead of the 1989 elections, 
when its candidate, Mr Collor, 
was campaigning for change. 

The support for Mr Cardoso 
has prompted complaints from 
Mr da Silva’s Workers’ party, 
the PT. Pointing out that Mr 
Cardoso is supported by the 
government, most business- 
men and the media, Mr da 
Silva said recently: “These 
elections are not as free and 
fair as we would like.” 

The PT complains that 
media ownership is too closely 
concentrated in the hands of 
too few, largely right-wing, 
people. According to some esti- 
mates, nine families - of which 
Mr Marinho's is the most 
important - own 68 of Brazil's 
71 TV concessions. 

But if Mr Cardoso wins the 
elections as expected, the PT is 
unlikely to succeed in its 
efforts to widen media owner- 
ship. Mr Cardoso's main 



Cardoso: backing from business and the media 


backer, Mr Antonio Carlos 
Magalh&es, owns the TV Globo 
franchise in his home state of 
Bahia, as well as several radio 


licences. He and other of Mr 
Cardoso's supporters are 
unlikely to welcome moves to 
break their monopoly. 


for army 

u My name is En4as" is a 
strange political slogan, but 
Entas Carneiro is no conven- 
tional politician. Seen by most 
Brazilians as an unbalanced 
and slightly ridiculous righ- 
twinger with a short temper. 
“EnCas" - as he is known - 
attracted 300,000 votes in the 

1989 election. This time he 
will pass the Lm mark, accord- 
ing to opinion polls which give 
him 4 per cent of the vote. 

His Party for the Re-edifica- 
tlon of National Order (Prona) 
is campaigning for a strong 
and nationalist Brazil, a 
clampdown on corruption and 
the purging of all sex from 
prime-time TV. Eneas, a for- 
mer army heart specialist, is 
said to favour a leading role 
for Brazil's military. When the 
Financial Times requested an 
interview to verify these 
reports, an adviser said: “We 
don't need the press, especially 
not the foreign press." 

Eneas is a Brazilian cross 
between Ross Perot and Vladi- 
mir Zhirinovsky. Prona seems 
to have support from a small 
cross-section of Brazilians, 
some of them profoundly disil- 
lusioned with existing politi- 
cians and the country's cor- 
ruption scandals, others who 
hark back to a “golden age" of 
stability under the military 
from 1964 to 1985. At the 
recent launch of the party's 
programme in S&o Paulo, most 
of the several hundred sup- 
porters who attended were 
well-dressed, young to middle- 
aged apparently conventional 
people who queued quietly to 
meet their leader. 


Compromise reached in Brazil car industry strike 


By Angus Foster in Sao Paulo 

Brazil’s car workers are likely 
to return to work next week 
after reaching a compromise 
with, the government and man - 
ufacturers over an 1Z.9 per cent 
pay riaim. 

The main unions, which 
went on strike on Monday, 
bringing Brazil's important car 
industry near to a standstill, 
are to decide at meetings at the 


weekend whether to return to 
work. But union leaders and 
manufacturers’ representatives 
are hopeful the dispute is over, 
and some people returned to 
work yesterday. 

The breakthrough came 
when the government with- 
drew from negotiations and 
said that it would not stand in 
the way of a one-off pay rise, as 
long as the increase was 
not passed on to customers in 


the form of higher prices. 

The government is trying to 
protect its new currency, the 
Real, from inflation, and 
argues that car makers can 
afford to pay for the increase 
from recent productivity gains, 
instead of by pushing up 
prices. 

The deal could lead to 
demands for pay rises from 
other unions. According to 
rules issued at the time of the 


Real's launch, pay rises can 
only be granted during each 
union's annual pay round. 
Since the pay round for the 
main car unions was not 
scheduled until April, other 
workers may now push to 
speed their claims. 

A widespread round of wage 
increases could weaken the 
Real, since it would be likely to 
add to consumer demand. 
Some economists say demand 


is already rising too quickly 
because of the rapid fall in 
inflation following the Real’s 
introduction in July. 

The strike, which has so far 
led to lost production of 18.000 
vehicles, mainly at Volkswa- 
gen, Ford and Mercedes-Benz, 
spema to have had no effect on 
the standing of either of the 
main candidates for next 
month's presidential election. 

The government had claimed 


the strike was politically aimed 
to undermine its candidate, 
former finance minister Mr 
Fernando Henrique Cardoso. 

According to a Gallup poll 
released yesterday, Mr Cardoso 
remains favourite to win the 
October 3 race with 43 per cent 
of the vote. 

His closest rival, Mr Luiz 
Inacio Lula da Silva of the 
left-wing Workers party, had 22 
per cent. 


Havana sees crack in sanctions 


Cuba to follow 
up immig ration 
accord with US 


By Pascal Hatcher in Havana 

Cuba is quietly intensifying 
diplomatic efforts to widen 
what it perceives as a crack in 
US sanctions following an 
immigration accord reached a 
week ago with Washington. 

“The accord in itself is a 
blow to the US policy of block- 
ade,” Cuba's chief negotiator at 
the immigration talks, Mr 
Ricardo Alarcon, said on 
Cuban television on Thursday 
night 

Mr Alarcon, president of the 
island’s National Assembly, 
said the September 9 immigra- 
tion agreement which aimed 
to halt an exodus of illegal ref- 
ugees fleeing Cuba by sea to 
the US, showed the US and 
Caba could develop a normal 
relationship in at least one 
area: Immigration. 

Mr Alarcon said the US had 
encouraged illegal immigration 
by Cubans in the past to try to 
destabilise President Fidel Cas- 
tro’s government but had now 
agreed to work with Cuba to 
stop illegal departures, includ- 
ing air and sea hijacks. 

Outlining what else the 
Cuban government felt it had 
gained from the talks, Mr Alar- 
con said they had generated a 
groundswell of opinion in the 
US calling for a rethink of US 
policy towards Cuba and 
renewed dialogue. 

He cited editorials to this 
effect published by leading US 
newspapers and public com- 
ments by senior congressmen 
such as Lee Hamilton, Presi- 
dent of the foreign relations 
committee of the House of Rep- 
resentatives. 

Senior US administration 
officials, however, had repeat- 
edly stressed the talks would 
deal with the immigration 
problem and nothing else. But 
the Cuban government, which 
says its conflict with the US 
cannot be solved if the lifting 
of the US trade embargo is not 
discussed, is clearly hoping to 
capitalise on the publicity gen- 
erated by the talks to keep 
attention focused on the 
embargo issue. 

Mr Alarcon said a fundamen- 
tal point of disagreement had 
been the US failure to lift addi- 
tional sanctions on Cuba 
imposed by US President Bill 


Clinton on August 20. These 
placed restrictions on hard cur- 
rency remittances sent by 
Cnban-Americans in the US to 
relatives in Cuba, as well as 
reducing flights between the 
two countries and visits by 
family members. 

Mr Alarcon said these latest 
sanctions were intended to 
appease the right-wing sector 
of the Cuban exile community 
in Miami which strongly 
opposed any direct dialogue. 
But the measures were hurting 
Cuban- Americans in the US as 
much as Cubans on the island, 
he said. 

Although the outcome of the 
immigration talks had been 
encouraging, Mr Alarcon made 
clear he did not consider that 


The Cuban 
government is 
hoping to keep 
attention 
focused on the 
embargo issue 


an end to the US-Cuban dis- 
pute was imminehL 

He rejected US demands for 
Cuba to change its one-party 
political system, improve 
human rights and reform its 
centrally-run economy. 

“We are being generous 
enough in saying we are will- 
ing to discuss the embargo. It 
should be lifted. Full stop,” 
he said. 

He cited an printing UN Gen- 
eral Assembly resolution con- 
demning the US embargo 
a gains t Cuba and calling for it 
to be lifted. 

Under the September 9 immi- 
gration accord, Washington 
said it would allow a minimum 
of 20,000 Cubans to migrate 
legally to the US each year. In 
return. Cuba moved to halt 
illegal departures by Cubans to 
the US following the exodus of 
around 30,000 Cubans by sea 
over the last six weeks. 

The progress of the accord 
will he reviewed at talks to be 
held no later than 45 days after 
September 9. 



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NEWS: INTERNATIONAL 


Israeli premier set to drop election pledge in order to win peace deal with Syria 


Rabin ready to return 


By David Horovttz 
in Jerusalem 

A t the height of a stormy 
Knesset debate this 
week on the future of 
the Golan Heights, Mr Uzi Lan- 
dau. a hardliner from the main 
opposition Likud party, 
declared bluntly from the 
podium that Israeli premier 
Yitzhak Rabin was “a liar”. 

When seeking election two 
years ago, be recalled, Mr 
Rabin bad promised never to 
sanction Israeli withdrawal 
from the entire Golan Heights. 
Yet now, Mr Landau charged, 
Mr Rabin was planning exactly 
that: a full pull-out in 
exchange for frill peace with 
Syria. 

Sitting in the front row of 
the half, Mr Rabin Hushed a 
deep red. and turned furiously 
to Mr Benjamin Netanyahu, 
the Likud party leader, 
demanding that Mr Landau be 
condemned for branding him a 
liar. Mr Netanyahu grinned, 
and retorted that he would be 
happy to condemn Mr Landau 
in the strongest terms "as soon 
as you convince me that you're 
not planning to withdraw from 
the Golan". 


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Mr Rabin had no answer for 
that: he stood up and, without 
another word, stalked out of 
the c ham ber. 

The lesson from this extraor- 
dinary exchange is p lain; Mr 
Rabin has indeed changed his 
mind and his policies. The man 
who just two years ago said, 
and believed, that to abandon 
Golan was severely to under- 
mine Israel's security, now 
thinks differently. 

Privately, and anonymously, 
some of his aides are confirm- 
ing what Mr Rabin's Likud 
critics and the leaders of the 


13,000 Jewish residents of 
Golan have been saying for 
several weeks now: that the 
prime minister now considers 
a peace treaty with Syria, the 
last and most implacable of 
Israel's former ring of neigh- 
bouring antagonists, to be 
worth the price of a complete 
pull-ouL 

Mr Rabin has said nothing 
too explicit in public, but lie 
has been dropping hints. In 
recent Interviews marking the 
Jewish New Year, he expressed 
his finn hope that an accord 
could swiftly be reached with 
Syria, despite the “painful 
compromises" be knew would 
be involved. Earlier this 
month, he unveiled a simpli- 
fied peace formula - providing 
for an initial "slight” Golan 
withdrawal, to be followed 
after three years of normalised 
relations by a "substantial” 
pull-out. Crucially, cabinet 
sources stress, he did not rule 
out a complete withdrawaL 

And when, a few days later. 
Syrian President Hafez Assad 
responded with a speech to his 
parliament, intimating that 
Syria was ready for full rela- 
tions with Israel provided the 
entire Golan was returned, Mr 


entire Golan Heights 


Rabin and bis ministers 
reacted positively. An old 
equation; a newly upbeat 

Israeli response. 

Just over a year ago, Mr 
Rabin departed from a policy 
he had endorsed for decades, 
and grudgingly stretched out a 
hand to welcome the Mr Yassir 
Arafat leader of the Palestin- 
ian Liberation Organisation, 
into the peace process. Now, 
his aides indicate, he has made 
another strategic policy depar- 
ture, abandoning bis insistence 
on retaining at least part of the 
Golan. 

Why has the primp minis ter 

- who as chief of staff in 1967 
oversaw the capture of the 
Golan Heights - changed his 
position, flying in the face of 
his own Labour party plat- 
form? 

Mr Yoel Marcus, a veteran 
observer of Mr Rabin who 
writes for the respected Ha'ar- 
etz daily newspaper, put it sim- 
ply yesterday. "He has come to 
the conclusion that peace with- 
out the Golan will contribute 
more to Israel's security than 
the continued retention of the 
Golan without peace." 

Three dozen Iraqi Scud mis- 
siles during the Gulf war 


taught him that land Is not the 
peerless security asset it once 
was. And with Egypt, the FLO 
and Jordan on board, a deal 
with Syria - and the accord 
with Lebanon that would auto- 
matically follow - would give 
Israel peace on all frontiers. At 
72, Mr Rabin is nearing the end 
of his political career; a treaty 
with Damascus would be a 
crowning achievement. 

However, at present, the 
prime minister does not even 
have his whole party, let alone 
the country, behind Mm 
Mr Avigdor Kahalani, a 
Labour backbencher who, as a 
battalion commander, was one 
of the heroes of bitter fighting 
on the Golan in the 1973 war, is 
defying Mr Rabin by lading a 
bipartisan campaign against 
withdrawaL A group of Golan 
residents are several days into 
an anti -withdrawal hunger 
strike. And an opinion poll 
published this week indicated 
that fewer than 50 per cent of 
the electorate are ready for 
even a partial withdrawaL 
But these are early days. Mr 
Dennis Ross, the US Middle 
East peace talks coordinator, 
is due in Israel next week for a 
series of Jerusalem-Damascus 


mediation trips. His boss, sec- 
retary of state Warren Christo- 
pher, is expected next month. 
By the end of the year, says 
Israeli army chief of staff Ehud 
Barak, believed to be one of 
the very few aides directly 
involved with Mr Rabin in the 
secretive peace manoeuvrings 
with Damascus, "we could well 
be in the midst of negotiations 
with Syria." ' 

Mr Rabin has pledged that, 
when the final deal is drafted, 
assuming it involves signifi- 
cant territorial concessions, he 
win hold a referendum. 

As things stand today, he 
would lose, but he will doubt- 
less utilise the next few 
months to prepare the Israeli 
public for the bitter pfil of com- 
plete withdrawaL seeking to 
sweeten it by persuading Presi- 
dent Assad to come to Jerusa- 
lem or at least meet him for a 
smiling eve-of-referendum 
summit. 

After alL if President Assad 
wants the entire Golan Heights 
back, it is he, not Mr Rabin, 
who win have to play the wain 
role in persuading a sceptical 
Israeli electorate of the virtues 
of the ftill-withdrawal-for-full- 
peace equation. 


Palestinian economics chief 
offers to resign over funding 


By David Horovitz 
fn Jerusalem 

Mr Ahmed Korei, minister of 
economics and trade in the Palestin- 
ian Authority running self-rule in Jer- 
icho and the Gaza Strip, yesterday 
expressed grave pessimism over the 
future of the autonomy process and 
Indicated he was on the point of 
resigning. 

In a telephone interview with the 
Financial Times, Mr Korei, who is 
also known as Abu Ala, responded to 
reports that he had already submitted 
his resignation to the PLO chairman. 
Mr Yasser Arafat, by saying: "I am 
still not resigned officially. The final 
decision will come in two or three 
days.” 

He added that he would not be 
attending today’s weekly meeting of 
the Palestinian Authority in Gaza. 
Palestinian sources suggested that Mr 
Korei might have filed a letter of res- 


ignation, and was now awaiting Mr 
Arafat's reaction. 

Mr Korei was arguably the key Pal- 
estinian architect of the Israel-PLO 
autonomy accords, leading Palestin- 
ian delegates through the months of 
secret talks in Oslo that preceded the 
official signing ceremony at the White 
House just over a year ago. 

He is respected by both Israeli eco- 
nomic officials and international 
donors, and his departure would be a 
painful blow for Mr Arafat personally 
and for the fragile autonomy process, 
which is already being undermined by 
the non-arrival of hundreds of mil- 
lions of dollars of pledged interna- 
tional aid. 

Mr Korei is known to hold Mr Ara- 
fat responsible for some of the fund- 
ing shortages, complaining privately 
that the PLO chairman is scaring off 
would-be donors by Insisting on per- 
sonally overseeing the disbursement 
of Rinds rather than establishing fully 


accountable Institutions to perform 
the job. 

In a veiled attack on Mr Arafat yes- 
terday. he said Japan, Gulf countries, 
the west and other donors “want to 
help the Palestinian cause” but were 
withholding promised funds "because 
they want Institutions to deal with". 
He noted that "no more than $50m” 
had been received so far, out of $2.5bn 
in aid pledges. 

That lack of money, combined with 
the slow-moving pace of the auton- 
omy process, he said, left him "very 
pessimistic”. 

He said that, under the terms of the 
autonomy accords, the Israeli army 
should by now have redeployed away 
from Palestinian population centres 
in the West Bank, that the Israeli civil 
administration in the occupied territo- 
ries ought to have been dismantled, 
and that preparations should have 
been well in hand for democratic Pal- 
estinian elections. 



Ahmed fiord: pessimistic about autonomy process 



Fast growth for 


Chinese 

By a BeQIng Correspondent 

Market reform in China is 
producing an expanding corps 
of fast-growing conglomerates 
which will be in the forefront 
of foreign trade initiatives and 
industrial restructuring, 
according to a new survey. 

The assessment - conducted 
by the Development Research 
Centre under the government's 
State Council, the State Statis- 
tics Bureau, and Management 
World, the Beijing magazine - 
found China’s largest compa- 
nies recorded higher growth 
and efficiency in 1933 and were 
evolving into industrial groups 
that will set the pace for 
reforming the loss-ridden state 
sector, the magazine said. 

The Chinese corporate evalu- 
ation shows sales volume in 
1993 increased 61.2 per cent 
over 1992 to Ynl,Q23bn (£77bn). 
Profits and taxes rose 37 per 
cent in 1993 to Ynl56bn. The 
top 500 companies represented 
only 1 per cent of Chinese 
enterprises but accounted for 
40 per cent of profits and tax 
payments, the survey said. 

The number of companies 
with sales in excess of Ynlbn 
totalled 287, up from 254 in 
1992. The smallest of the 500 
reported sales of Yn570m, 
reflecting sharp growth from 
1992, when the smallest 
recorded sales of Yn370m. 

The 500 are located mainly in 
the city of Shanghai. Guang- 
dong and Liaoning provinces 
and several other fast-growing 


groups 

coastal provinces, and are are 
concentrated in metallurgical 
and industrial and transport 
machinery sectors. 

The top ten companies and 
their sales volumes are: Shang- 
hai Automotive Industry, 
Yn30.7bn; Daqing Petroleum 
Administration, Yn27bn; 
Anshan Iron & Steel Group, 
Yn21.7bn; No l Automotive 
Works, Yn2L6bn; Baoshan Iron 
& Steel Group, Yn20.2hn; Dong- 
feng Automotive. Yn20bn; Cap- 
ital Steel Complex, Ynl7J5bn; 
Shenli Petroleum Administra- 
tion, YnllGbn: Wuhan Iron & 
Steel Group, Ynl4bn; Beijing 
Yanshan Petrochemical, 
YnlL4bn. 

• China is showing new flexi- 
bility on trade issues Australia 
wants resolved before it will 
agree to China’s admission to 
Gatt, the Australian trade min- 
ister said yesterday. AP 
reports from Beijing. 

Mr Bob McMnllan met his 
Chinese counterpart, Mr Wu 
Yi, in concluding a visit to Bei- 
jing, S hanghai and Canton. 

Australia’s main concern is 
that China lower or eliminate 
tariffs on wooL 

Talks on trade issues con- 
cerning Australia had been fro- 
zen. but the tone of his meet- 
ings in China convinced him 
there was "room for flexibil- 
ity," Mr McMuilan said. 

China wants to he a Gatt 
member before January I so 
that it can be a founding mem- 
ber of Gatfs successor, the 
World Trade Orga n isation. 


Japan savings 
bank in £9bn 
exchange loss 


By WKam Dawkins in Tokyo 

Japan’s postal ministry, 
custodian of the world's largest 
savings bank, has revealed for- 
eign exchange losses of at least 
YL374bn (£9bn) caused by the 
rise in the Japanese currency. 

The shortfall, on the yen 
value of overseas bonds and 
shares bought by the postal 
savings bank and the postal 
life insurance up to the end of 
March, is unlikely to be turned 
into a cash loss because both 
institutions are long-term 
investors, over 15 to 20 years, 
say officials. By that time, they 
hope the yen will have weak- 
ened enough against the for- 
eign currencies involved, 
mainly OS and Canadian dol- 
lars and sterling, to yield a 
profit 

Yet the speed at which the 
postal institutions' foreign cur- 
rency losses have risen, by 36 
per cent in the year to last 
March, has worsened the 
postal ministry's poor relations 
with the finance ministry. 
Postal officials are unhappy 
over being informally asked by 
the finance ministry to avoid 
selling foreign equities to help 
government efforts to curb the 
yen’s rise. 

They have lobbied the 
finance ministry for permis- 
sion to use derivatives to 
hedge foreign exchange expo- 
sure, but fmanrial officials do 

not want state Institutions to 
be seen using such instru- 
ments, blamed for creating vol- 
atility in Tokyo's capital mar- 
kets. 

The yen's continued rise, 
from an average of Y107.8 to 
the dollar in March, when the 
postal funds closed their books. 


to around Y99 yesterday, sug- 
gests that losses on the yen 
value of foreign securities will 
have grown since then. Of the 
total deficit, Y910bn is attribut- 
able to the postal life insurer's 
Y4.222bn foreign exchange 
holdings, while the remaining 
Y464.2bn is from the postal 
savings bank's Y 2. 354 bn for- 
eign holdings. 

Postal fund managers will 
reduce purchases of foreign 
securities this year, said a 
postal life insurance official 
yesterday. “We are now very 
very cautious about buying for- 
eign holdings," he said. 

Until now, the postal minis- 
try has increased purchases of 
US and Canadian securities 
whenever private sector inves- 
tors have sold the same paper, 
according to Mr Richard Koo, 
senior economist at the 
Nomura Research Institute. 
"At times, they provided, 
intentionally or otherwise, 
back-up for the Bank of 
Japan's foreign exchange infor- 
mation," he wrote in NRl's lat- 
est monthly guide to Japanese 
Investment. He expects the 
ministry’s new caution to 
spread to other Japanese inves- 
tors. 

The rise in the postal institu- 
tions' foreign exchange losses 
is unsurprising, since they 
bought overseas securities 
heavily in early 1993, when it 
looked as if the yen niight sta- 
bilise at around Y120 to the 
dollar, said Mr Robert Feld- 
man, director of economic 
research at Salomon Brothers 
Asia. However, in the long run. 
the postal institutions could 
well end up with a profit on 
their foreign holdings, he pre- 
dicted. 


Officials strain 
at finance 


ministry leash 

Emiko Terazono on bureaucrats 
at loggerheads over Japanese 
rules for investing public funds 


The Yl,374bn (£9bn) foreign 
exchange loss on Japan's 
postal ministry investments 
highlights the conflict between 
the finance ministry and other 
ministries over the manage- 
ment of investment funds. The 
postal ministry wants to hedge 
its foreign assets by using cur- 
rency futures and options and 
blame their unrealised foreign 
exchange losses on legislation 
which prohibits the use of such 
financial instruments. 

Fund managers of the 
Y72,300bn postal insurance 
also want legal changes which 
will allow them .to invest in 
property. They argue that cur- 
rent weak conditions In the 
property market make it suit- 
able for investment. And the 
postal ministry wants to diver- 
sify investments into corporate 
lending aside from the conven- 
tional stocks, bonds and depos- 
its. This has met loud opposi- 
tion from the commercial 
banks, since it would hurt 
lending to companies which is 
already dwindling because of 
faltering demand stemming 
from the sluggish economy. 

The postal ministry is joined 
by the health and welfare min- 
istry in fighting for more 
autonomy over investments of 
funds totalling more than 
Y350,000bn collected through 
the state pension system - 
over which the health and wel- 
fare ministry holds jurisdic- 
tion. 

The fi nance ministry lays 
down rules about how such 
funds are to be invested in 
order to maintain "prudent" 
fund management. However. 


the two ministries claim that 
in order to maximise returns, 
the funds need to be managed 
more efficiently through diver- 
sified investments. 

The health and welfare min- 
istry wants to raise investment 
returns ahead of the surge in 
state pension receipts at the 
turn of the century. It is 
demanding that limits on 
investments - 50 per cent of 
the funds must be invested 
into bonds, while stocks and 
foreign assets cannot exceed 3ft 
per cent - be eased. 

Ministry officials also want 
to hire investment advisers, 
including European and US 
fund managers, to manage the 
funds. Currently, funds are 
allocated to 14 life assurers and 
15 trust banks, with one insti- 
tution managing as m uch as 
Y2,000bn_ The US government 
has long been pushing far simi- 
lar changes since it .would 
mean greater opportunities for 
US fund managers. 

The finance ministry, offi- 
cials argue that high risk 
inves tment such as stocks, in 
which investment advisers 
hold high expertise, could lead 
to losses and hence hurt the 
policy holder. 

The health ministry wants to 
manage Its funds directly 
i nstead of the current arrange- 
ment, whereby the bulk of the 
Yl00,000bn state pension fund 
reserves are funnelled into low- 
interest loans for public works 
and the health ministry bor- 
rows Y20.000bn from the 
finance ministry to invest in 
financial Instruments deemed 
suitable by law. 


FT Worldwide Residential 
Property Survey. 

On Saturday, September 24 the FT Worldwide Residential Property Survey will 
be published with the Weekend FT. 

It will look at a wide range of properties around the world including the most 
desirable residencies in London, Paris, Tokyo and New York. 

There will also be insights into what makes a waterside development succeed. 

And it will provide a useful review of islands in the winter sun as well as chalet 
properties even for those who do not like winter sports. 

Weekend FT 


Hurd doubts on Hong Kong talks 


By Simon Halberton 
In Hong Kong 

The depth of official concern 
over Hong Kong was under- 
lined yesterday when Mr Doug- 
las Hurd, Britain’s foreign sec- 
retary, admitted that existing 
machinery for discussing with 
Beijing the colony’s reversion 
to Chinese sovereignty in 1997 
was inadequate. 

Mr Hurd, at the end of a 
two-day visit to Hong Kong, 
said Britain and China needed 
to be “imaginative" in finding ' 
ways to accelerate the work of 
the Joint Liaison Group, a 
body established in 1984 to 
oversee the detail of Hong 
Kong's reversion to China. 

“If present procedures need 
adaptation, if work can be 
done in a different way in 


order to accelerate it, in order 
that purely technical matters 
can be dealt with without a 
political overtone - well, this 
is something the two sides can 
discuss," he said. 

It was not readily apparent 
what imaginative steps the two 
sides could take to accelerate 
work in the JLG. Mr Hurd met 
the British and Chinese repre- 
sentatives to the JLG yester- 
day. After the meeting. Mr 
Hugh Davies, Britain’s senior 
representative to the body, said 
both sides would look at ways 
to speed progress at next 
week’s plenary session of the 
JLG in Beijing. 

There Is, however, deepening 
concern among British and 
Hong Kong officials that the 
JLG will not be able to com- 
plete its work by 1997. Next 


week's meeting is taking place 
a g ains t a background of dimin- 
ishing expectations; on present 
trends the colony runs tee risk 
that many statutes will be 
invalid after China takes over 
because they have not been 
“localised". 

Mr Allen Lee, a conservative 
politician, said Mr Hurd during 
a meeting with legislators had 
spoken of “an imperfect transi- 
turn" because of the lack of 
progress in the JLG. The for- 
eign secretary also told legisla- 
tors that 1997 marked the end 
of British Empire and that 
Britain did not want to see it 
aid ha a "shabby way". 

Mr Hurd will meet Mr Qian 
Qichen, his Chinese counter- 
part, in New York the week 
after next. The Chinese govern- 
ment has already sought to 


play down the significance of 
the meeting. 

The foreign secretary said he 
would tell Mr Qian Britain was 
serious about co-operating 
with China on Hong Kong mat- 
ters. Both sides had a legal 
Commitment tO do SO anri had 

a shared interest in seeing the 
colony enjoyed a smooth tran- 
sition. to Chinese sovereignty. 

• Hong Kong will force 83 
Vietnamese asylum seekers to 
return home next week, it said 
yesterday, resuming a contro- 
versial policy suspended after 
police tear-gassed protesting 
Vietnamese in April, AP 
reports from Hong Kong. 

Human rights groups con- 
demned the annnunpampn t- 35 

Vietnamese in detention con- 
tinued a hunger strike in pro- 
test at forced repatriations. 






FINANCIAL TIMES 


WEEKEND SEPTEMBER. 17/SEPTEMBER 18 1994 


5 







r't« 


v&Vt’.f 
■. -1 . • 


ataEs^as:' ^ 


WHAT WE'RE USING TO LAUNCH OUR 
NEW TELEPHONE NETWORK. 


Guess the cost of starting a new 
national telephone network - quadruple 
it and multiply the answer by five. 

Then make it the most advanced 
network in the world, that’s capable of 
carrying pictures and information as 
well as sound - add another billion or 
two. At Energis we’ve managed to avoid 


that cost with a brilliant idea. 

Energis is owned by the National 
Grid Company, so what we’ve done is 
put fibre optic cable along the pylon 
wires to create a new, state-of-the-art, 
long distance telephone service. 

You've probably already heard of the 
information super highway, well Energis 


bring you the information super highwire. 

And yes, the savings will be passed 
on to you, which is why major customers 
have already decided to use us. 

But you don't have to be a major 
customer to use us, 4 or more lines is 
sufficient to make it worth your white, 
if your company makes a significant 

T 


proportion of long distance calls. 

(You may well be surprised to learn 
that ‘long distance’ is anything over a 
mere 35 miles.) 

So, in the future, as well as using 
phone calls to make you money, you 
could also be using phone calls to save 
you money. ENERGISE YOUR PHONE. 


ENERGIS 














FINANCIAL TIMES WEEKEND SEPTEMBER 17/SEPTEMBER IS 1994 


: UK 


Saudis and S Africans seek help 


Privatisation 


Signal workers’ chance to sp#k put 


As RMT delegates meet this weekend, Robert Taylor looks at the executrye|;Mrdlme stance 


tops Major’s 
tour agenda 


By Kevin Brown, 
PoHUcai Correspondent 


Saudi Arabia and South Africa 
have asked tide government for 
advice on privatisation pro- 
grammes that could generate 
massive consultancy and flota- 
tion fees for British companies. 

British officials say privatisa- 
tion will be near the top of Mr 
John Major's agenda on his 
five-day visit to the two coun- 
tries and Abu Dhabi which 
starts tomorrow. 

More than a dozen top busi- 
nessmen will accompany Mr 
Major. The group includes 
senior executives of privatised 
companies, merchant banks 
and stockbrokers. Mr Anthony 
Nelson, the Treasury minister 
responsible for privatisation, is 
aim going. 

The trip is the first visit to 
South Africa by a British 
prime minister since Harold 
Macmillan’s "wind of change" 
speech in i960. 

Mr Major will hold talks with 
Mr Nelson Mandela, the presi- 
dent, and his vice-presidents 
Mr Thabo Mbeki and Mr F.W. 
De Klerk. He will aim meet 
Chief Mango suthu Buthelezi, 
the Zulu leader. 

The prime minister will 
announce more aid far South 
Africa and tell an informal sit- 
ting of both houses of parlia- 
ment that Britain is keen to 
re-establish a dose relation- 
ship with its former colony. 
However, the focus of the trip 
will be on developing business 
opportunities identified during 
an exploratory visit in July by 


Mr Michael Heseltine, the 
trade and industry secretary. 

The African National Con- 
gress ruled out privatisation 
before winning the elections - 
but the multi-party govern- 
ment Is considering asset sales 

. as a imang nf raising Tnp pfi y ft) 
finance its reconstruction and 
development plans 

The state-owned railways, 

ports anil alitiiw are thnnig ht 

to be possible candidates for 
privatisation, with the water 
Industry Telkom, th* tele- 
communications agency. The 
government also owns a num- 
ber of «nwH bumnesses a 
phosphorus wtfap and a ga« 
field which could be sold. Polit- 
ical demands for land r efo rm 
would probably prevent the 
disposal of the state's vast land 

hrihttngs. 

Many of the British compa- 
nies represented in the party 

have lwn g-sfamrHwg- linfea . with 

South Africa, and Some are 
believed to have held prelimi- 
nary talks with government 
official* since the e jection. 

South Africa is also thought 
to be interested in buying Brit- 
ish naval patrol craft and mili- 
tary aircraft. But B ritish offi- 
cials said no ifaih were likely 
to be finalised during the trip. 

Saudi Arabia is said to be 
considering the privatisation of 
part of its extensive public sec- 
tor to replenish reserves 
depleted by the cost of the Gulf 
war. The stale-owned telecom- 
munications, petrochemicals, 
and airline businesses are 
thought to be potential candi- 
dates for privatisation. 


Delegates representing the 
signal-worker members of the - ' 
RMT transport union meet this 
weekend in Great Ya rmouth, 
Norfolk — the first opportunity 
in the nearly three months of 
their dispute , for rank-and-file 
signal workers to express a 
view. 

The annual conference will 
be held behind closed doors 
and has an advisory rather 
than derision -making role, but 
both RMT leaders and Rail- 
track management are anx- 
iously awaiting its outcome. A 
union official said yesterday: 
“It should give us a good idea 
of the mood among the men.” 

Rafltract was a cau- 

tious view. For many weeks 
the state-owned company 
responsible for administering 
the network’s infrastructure 
has been running a “hearts 
and minds" campaign among 
the signal workers urging 
thorn to persuade their leaders 
to return to the negotiating 
table 

The company beheves many 
signal workers agree with the 
, results of a MORI pbQ that it 
published yesterday which 
showed that 75 pcs- cent of the 
public think the imfcm should 
hnilil another ballot On Strike 
acti on 

It also believes, however, 
that few signal workers are 
willing to speak out openly at 
union branches or elsewhere 
fin- a return to negotiations. 

B ehind the RMT leadership’s 
show of unity attitudes are by 
no means soclearcut 

Mr -T imm y Knapp, the 
union’s general secretory, can- 
not dictate the tactics or strat- 
egy of the dispute. He is 
accountable for all his actions 
to the RMT executive council, 
which he attends but at which 
he has no vote. 

Mr Knapp is "subject to sus- 
pension’’ by the executive if he 
is ever “absent from duty" or 
responsible for “gross neglect 
or incompefcency”. IBs fan- time 


Minister praises 
model pay policy 


By David Goodhart 


Average take-home pay far an 
unmarried production worker 
in the UK is higher than in. any 
other European Union country 
except Luxembourg; Miss Ann 
Wlddecombe, employment min- 
ister, said yesterday. 

In a speech to an Interna- 
tional Labour Organisation 
seminar in London to mark the 
ILO's 75th anniversary, she 
argued that British labour 
market policy, stressing flexi- 
bility and deregulation, was an 
example to the world. She said 
the “diabolical trade-off” 
between good jobs and more 
jobs, which concerns Mr Rob- 
ert Reich, the US labour secre- 
tary, does not exist in the UK. 

“While income differences 
have widened in the UK, there 


have been real wage increases 
fix' all groups,” she said. “We 
are unlike the United Status in 
this respect: there, real wages 
at the lower ehd have fallaL 
Adjusted for costa, take-home 
pay for a British production 
worker, married with two chfl- 
dren, is only fractionally lower 
than in Germany or Belgium 
and higher than in France and 
Italy." 

Miss Widdecombe argued 
that a flexible labour market 
was compatible with employ- 
ment rights. "Many employ- 
ment rights, such as those 
relating to health and safety, 
race and sex discrimination, 
trades’ union membership and 
maternity leave, apply to all 
employees regardless of hours 
or work or length of service," 
she ante. 


Bank Is 
‘keeping 
Ucatt 
afloat’ 


Ely Robert Taylor, 
Labotr Correspondent 


CONTRACTS & TENDERS 


SUGAR & INTEGRATED 
INDUSTRIES COMPANY 
" S.I.I.C." 

12 Gawad Hosny Street, Cairo/AJRJE 
Fax: 3934558 Itelex: 20906/21193 SJJLC 
PURCHASING SECTOR 
Announce for International tenders for 
laboratory equipment and chemical material for 
Belkas Beet Sugar which will be financed by: 
Saudi Fund for Development 


Tender No. Goods Due Date 

17 Belkas Laboratory Equipment 18.10.94 

17/1 Belkas Chemical Material 20.10.94 

1. Envelopes will be received and opened at 12 | 
o'clock noon Cairo local time on date 
indicated above for every tender. 

Z Tender documents can be obtained from 
above mentioned address against stamped 
applications and paying L.E. 1000 for one 
set plus 10% if requested by mail 

3. Offer to be submitted at A/M address on due 
date through the registered Egyptian agents 
accompanied by: 

13 original and copy of form 14C, original will 
be returned to the Agent 

23 copy of receipt of buying the tender 
documents 

33 Original of unconditional bank bid guarantee 
amounting 2% at least to be increased to 
10% in case of contracting 

4. Offers not complying with the tender terms 
and conditions will be rejected without 
response. 


Ucatt, the construction union, 
would not be a going concern 
if it did not continue to have 
the full tacking of Unity Trust 
Bank, the trades union bank. 

This Is the conclusion of 
H.W. Fisher, the union’s 

fn g iHWHft nntiiniP 

sub mitted to fhe independent 
Certification Office this week 
with the union’s annual finan- 
cial return tor 1993. 

Tfae union reported a £L05m 
operating deficit last year, 
down from £ 1.83m In 1992, 
with a negative net cashflow 
or 2685,000 on Us current 
account, down from £901,000: 
However, Ucatfs general fund 
reported an accumulated defi- 
cit of £3.17m on December 31 
1993. Ucatt had to pay 
£200,000 in interest charges an 
its £l-25m bank overdraft last 
year. It also said it owed 
£1.14m to unspecified sundry 
cred i t or s. . 

In its report - which is 
addressed to Ucatt members - 
H.W. Fisher says “The bank 
has ady agreed to maintain i 
the overdraft facility on a tem- 
porary basis. We consider that 
there is therefore a significant 
level of concern es to the 
appropriateness of the going- 
concern basis.” 

The report continues that Its 
opinion “is not qualified in 
this respect”, on the basis that 
Ucatfs bankers have Indicated 
that they win continue to sup- 
port the union. The ov e rdr af t 
has been secured by fixed 
charges over union properties. 

Unity Bank has said it will 
continue to su ppor t the mxkm 
commercially mini a new fond- 
ness plan is completed and the 
bank Is “satisfied that its 
Implementation win restore 
the union to financial sta- 
bility”. 

Mr George Brum well, 
Ucatfs general secretary, said 
yesterday: “We are now in a 
position to make a significant 
reduction in our debts.” The 
union is in the process of sell- 
frig property and reducing its 
staff. 

The accounts show that the 
union has saved about 
£800,000 in personnel costs. Its 
regional staff cost £L67m last 
year, down from just over £2m 
in 1992. There was also a 
reduction in general adminis- 
trative expenses to £561,000 
from £749,000. 

However, the union has had 
to trim Its services to mem- 
bers, There was a cut of more 
than half in legal assistance to 
£204,000 from £510,000. 
Funeral and other benefits 
amounted to only £56,000 in 
1993. Ucatt had investment 
income of just £8,000 last 



cfficjalfl are also responsible to 
the executive couradL 

Day-to-day power In the 
nrnrm rests with the 21-stnmg 
executive council - which is to 
be reduced to 13 from January 
as the union contracts to save 
money in the face of dwindling 
membership and tight 
finances. The balance of politi- 
cal power on the executive is 
held by the left, althou gh its 
majority changes. 

The executive is unique in 
the trade union, movement in 
that it is fufl-ttme - ejected 
KMT members are seconded 
from their jobs to work in the 
union's London headquarters 


am H are paid an annual ^allow- 
ance by the union, usually 
about £28J)00. 

The signal wat te s have tea- 


ovier'-taiffiar- eacl ‘ hot strategy. 
/ v The frost" decisive evidence 
c^myision cama on July 14 


ditionaUy beerila rather Iso- .--12>.yotea to six a; proposal to 
lated section of im iinkfr with L -co ioaxtrate jhl weekly one-day' 
no substantial: Influence over- stbpp&ges. -The move was 
policymaking. Only two, ment ' ppdpbsed by frost of the strike 
here of the present QfecutiTO^-.<tommittee.' : backed by 
are from signalling k^de^^hfr -Knapp and Mr Vernon 
although Mr Khhpphasa sig- ~ i-fince, the union’s' chief 
naTting background. One of., , itegotiatar- .. ~ ^ . . 

fhPTri - Mr’Jnhrv TTTWqr —^Haarb; '-ftpha tyy miWiol ■ flecMOtt to 
the specially cteded.six-cd^ong tha actnm -• passed 

H trlhn reports ■ lHMnliiuwBily by the Bfflcutl w 

to the executive.' " .' . i.-~ras very dosd to the Jeffs 

The main Internal - differ^ >d&handa and. both Mr, Knapp 
ences on the RMT executive in. and. Mr Hince refused to 
the signal dispute.lnve :beah ' appr&ve ifc' - u ; 


G limme r backs ! Cambridge votes 


shops complex for status quo 


By Simon London, 

Property C o f Tsa p do db n t 

■ v . :ii«i 

A- proposed £200m property 
development ^next to the Man- 
chester Ship! Canal yesterday 
won the backing of Sfr John 
Gmmner, tine wfow ww^imi sec- 
retory, in an important- test of 
government policy, on out-of- 
town shopping centres. 

Mr Gammer said - that he 
Would ask the House of Lords 
to o v ey tta n a Court of Appeal 
judgment to July which threat- 
ened to block the lm sq ftTraf- 
ford Centre scheme. 

The Appeal Court quashed 
outline planning approval 
granted in March 1993 by Mr 
Michael Howard, then environ- 
ment secretary, following oppo- 
sition by local anthorities. 

The authorities, led by Man- 
chester City Council, said that 
the development would 
Increase traffic pollution and 
harm town-centre stores. 


. The outcome should clarify 
-the government's attitude -to' 
large j out-of-town . shopping 

developments. Rprant plarmfng 
guidance issued to local 
authorities try Mr Gammer 
suggested that jfae. government 
had changed its attitude to the 
desirability of such centres 
since theTrafford scheme was 
givai the green light The envi- 
ronment department has dis- 
couraged schemes which 
require people to traveL 
» Mr Gummer said yesterday 
that tfae original detishm was 
lawful and reasonable -in the 
light of circumstances at the 
time. He said the Appeal Court 
ruling COUld have ImpHeatinm; 
fin the admi nist r ation of the 
planning system and should be 
clarified to the Lords. 

The ruling is already bring 
challenged in the Lords by 
Ma'v’hwt t p] - Ship Canal Com- 
pany, owner of the 300-acre 


By John Authors 


"» •*. "* . 1 ’ ‘ • * i* 'J ‘ i ‘ "? * • - < ’ 

Cambridgeshire., .residents 
prefer the existing two-tier sys- 
tem of districts and counties, 
aocudiiig.to tireresults of a 
referendum announced yester- 
day., v- ... 

Keepfrg the status, quo was 
tiie most po pular o ption in the 
“advisory referendum” carried 
dut:by the Local Government 
Commission- - even though 
tins was 1 not among the struc- 
tures proposed- by the commis- 
sion. 

It was favoured by 38 per 
cent of those who responded. 
The commission's own prefer- 
enre for abafishing the two-tier 
s tr u ct ur e and replacing it with 
three allpurpose unitary counr 
ells was favoured by 23 per 
oenf, while alternative propos- 
als fin- two and four unitary 
authorities ware birth favoured 
by only 14 per cent of respon- 


Ahnpst. 20 per cent of the 
county's 293,816 households 
. responded tq tire questionnaire 
from the commission - a mhch 
higher turn-out in' Leices- 
tershire, where only Z3 per 
cant of' residents partici-. 
pated. 

However in Huntingdon- 
shire, which stands to Regain 
administrative independence 
lost in the reorganisation of 
1974, 47 per cent favoured the 
commission’s proposal- This 
repeals tfae pattern far 1 Leices- 
tershire, where residents of 
Rutland, another county which 
ceased to exist to 1974, stran^y 
supported a return to- the old 
. bo undaries. 

There were overalTfrutfori- 
ties in favom of. tfae two-tier 
system in both East Cam- 
bridgeshire and South Cam- 
bridgeshire districts, while a 
majority in the Fenland dis- 
trict favoured creating four 
u n ita ries- 


Travelcard costs that carry a price 


How far can London Transport 
push up the price of its TTavri- 
card - allowing multiple jour- 
neys by train, bus and under- 
ground - before it kills the 
goose that lays the golden 


Reports that London, com- 
muters face an increase of up 
to 10 per cent in Travelcard 
prices, with other tickets rising 
by just 6 per cent, have 
prompted concerns that the 
limits of customer resistance 
are about to be reached. 

Introduced in 1983. the Trav- 
elcard boosted passenger num- 
bers when public transport use 
was in decline to the rest of 
the country. 

For commuters, the Travel- 
card is relatively cheap and 
convenient. Weekend and 
evening journeys on top of the 
daily journey to and from work 
are free. 

The advantages to the trans- 


port company are that it Is 
paid to advance, there is less 

fraud and travellers do not pay 
each time they get on a bus or 
a train allowing pa sse ngers 
to board buses mare quickly. 

Mr John Cartledge, assistant 
secretary . of the London 
Regional Passengers Commit- 
tee, a consumer watchdog, 
said: “The. Travelcard puts 
public transport on a par with 
the p r ivate car. G&ce you have 
bought a am the only marginal 
cost Is for petrol and parking, 
so you have an Incentive to use 
it as much as possible. The 
Travek&ird afro means yon cm 
make extra journeys far a nil 
marginal cost” 

But LT thinks the Travel- 
card is too cheap. It was priced 
at a- discount when it was 
launched but its price has 
increased more quickly titan 
other tickets - for example by 
10 per cefrt in January 1998 


when fares in general were 
increased by R5 per cent - but 
LT calculates that it still pro- 
vides a saving of 30 per cent. 

Report s pn’w g fo g from this 
year’s early talks on fares pol- 
icy indicate a for larger gap 
between the two rates of 
inc rease this time rbinuL ' 

Commuters might be happier 
if LT used the same method of 
calculating Travelcard foxes as 
Network Ticketing, which 
administers the Network 
Travel Ticket for transport 
oper ato rs to Tyne and Wear. 

Network Ticketing bases 
fores on Che average charged 
for individual Journeys by the 
30 local bus companies, the 
Tyne and Wear Metro and Brit- 
ish Rail- Mrs Julie Johnston, 
manager of Network Ticketing, 
said: “It is a straightforward 
mathematical calculation so 
we can easily explain how our 
prices are nude up.” 


Its weekly: rate is based on 
the cost of nine jtameys, a dis- 
count of 10 per cent <m apre- 
. sumed 3% Joumeys a week for 
tire > Monday-to-Friday com- 
muter, although some people 
make up to IS Journeys on a 
weekly ticket, a discount of 40 
per cmd. 

LT maiy'have grtater scope 
to reduce its 30 per cent dis- 
count because many commut- 
ers have no alternative means 
of traveL . . 

But if it poshes prices too 
high ’ travellers . might he . 
tempted to.take to their cars, 
increasing congestion. H they 
stayed with public transport 
but bought single tickets, 

queues WOtlld len gthoii . bus 
boarding Hbuki would increase 
and the cashflow benefit of 
advance payments would be 
tost 


Charles Batchelor 


Pottery 

workers 

made 


mm 



Redundancy notices were 
handed yesterday to 232 .pot- 
tery workers at Ironstone 
Tableware in Shelton, Stoke- 
e&Trent 

Mr .lan Powell of Price 
Waterhouse,' one ofthe admin- 
istrative receivers appointed to 
tire company earlier this 
month, said he could not rule 
oat job losses among the 
r emainin g 208 workers. 

He said: “We regret the need 
to make these job cuts bat 
there has only been limited 
interest from prospective pur- 
chasers of the business, partic- 
ularly at the pottery’s present 
size and capacity." 

The company, which makes. 
: earthenware Including mugs 
and: plates mainly far the over- 
seas market, went into receiv- 
ership because of cashflow dif- 
ficulties. 


Steel profiling 
plant to dose 


.. .. v.’ r- s-t' ... 

Although the RMT unlonsays Jimmy Knapp (left) and Vmren Hince hay^Uot * ^ its headquarters is an unhappy place 


Suggestions that the two 
have been overrated at least 
once by the executive's major- 
ity an.tbe proposal of a com- 
promise settlement to, the dis-. 
putol." have ‘ denied 

strimgty: But RMT lioadquar- 
tera is £m unhajgiy'place. . 

This ; weekend’s conference 
may put pressure qn the execu- 
tive to change tack, dr at toast 
reappraise their; strategy., ft is 
not wholly Without impor- 
tance^ After 'all, fret year; it 
passedik motion calling for a 
strike ballot of aigual woriteis 
if their long-standing gitev- 
ances had not been resolved 
within" Sfr-monthsT ~ 


British Steel Strip Products is 
closing .its profiling plant at 
Newton Aydiffe," County Dur- 
ham with the loss of 56 jobs. 

The closure is part of a 
rationalisation to be car- 
ried out over the next few 
months. It follows the pur- 
chase in March of two proffling 
plants from RTZ, the interna- 
tforaaL lwiwfog group. , 

' the acquisitions improved 
.British Steel’s market position 
but with continuing overcapa- 
city it wants to cut costs by 

rfnwfog ffTw of Us three riwits, 

which . ■ turn. .■ : flat 
steel sheets into shaped 
products. 


Labour to hold 
economy debate 


Labour Is to hold a-aneJay 
co nf erence on the fixture of the 
world economy later this 
month, at which It wM debate 
poHdes and Ideas at tee heart 
of its agenda. , 

The one-day. conference, 
called "New Policies -for the 
Global Economy”, has been 
organised by Mir Gordon 
Brown,1heshadow chancellor, 
and will be attended by Mr 
Robert Reich, the US labour 
secretary. 

Tfae tonference, to be opened . 
by Mr Tony Blair, tiretabouar 
leader, will take place on Sep- 
tember 27 at tire National Rhn 
Theatre in London. 

The Labour party odd yes- 
terday that- its. membership 
had. risen to 280,381 to August 
. - the highest since a scheme of 
national enrolment was intro- 
duced in 1989. 

The party reported: that it 
had recruited 41,000 members 
this year, Including. 10,000 
union “registered” members. 


Sales of building 
materials increase 


Sales .of faufldhig xnateiikls by 
bufldws merc hants roee 8A per 
emit in tfae 12 months to the 
end of July, the biggest year- 
an-year gain since 1988, accord- 
ing to figures published yester- 
day. 

A survey by the Builders 
Merchants Federation, showed 
sales in May, June andr July 
were 1L3 per cent hi gher , than 
in Jfae corresponding -period 
last year, but 2.7 per cel's- lower 
than In the previous ithree 
months. a- 


dO 




Partnership 

rescues to change 


Ftrtnerships In finanriaTSffl. 
culty will be offered the same 
rescue procedures which are 
available to companies, mater 
le g i sl a t i on laid before parlia- 
ment yesterday. . ,,bV 

The Insolvent partnerships 
order will allow par tnership; 

to ' come to a binding agree' 
meat with creditors Ear the set* 
Element of debts, or allow' a 
breathing space to put survival 
plans to creditors. 

The order will come into 
force on December L 


City disappointed at £3.2bn budget deficit 


By Motoko Rich 



'SOOmKtWMMHtA' 


The goverament’s budget 
deficit deepened unexpectedly 
to £3.21bn in August from 
£Llbn in July, well above City 
forecasts of £2JhiL 
But tire public sector borrow- 
ing requirement for tfae first 
five months of the financial 
year was £ L 5 .5bn. down from 
£184hn to tfae same period last 
year, indicating that thp Trea- 
sury Is still an course to reach 
its forecast of £36.Zhn for the 
PSBR to 1994-95. 

. Fart of the reason for this 
month's figure was high cen- 
tral government outlays and 
smaller repayments by local 


authorities and public corpora- 
tions. 

Analysts were disappointed 
by the August figure - but 
remained optimistic about 
longterm PSBR prospects, pre- 
dicting a deficit of between 
£30bn and £S4bn. 

Mr Simon Briscoe, UK econo- 
mist at S.G. Warburg Securi- 
ties, saidr “ Thin month’s dpftrH 1 . 
will restrain wildly optimistic 
forecasts. But it is better to 
look at a run of months 
because you will reafise that 
tax receipts in general are ris- 
ing more s trongly thap public 
expenditure, so an undershoot, 
an the government's forecast Is 
still on tire cards.” 


Receipts from taxes, excise 
duties and other income 
totalled £17.19bn for August, 
up from fl556fan in the same 
month last year, but -down 
from £L9.3bn in July. In the 
five months to August cash 
income was £87_lbn, a rise of 
5^ per cent from £82^batn the 
same period in 1993-91. 

Cash outlays for August 
were £20J)7bn, up from 
£2GJBbn in August last year 
and £20-79bn to July. In the 
five months to August cash 
outlays were girvi ihn up 2£ 
per emit from. noLShn in the 
equivalent period last year. 
Net departmental outlays in 
the five months were 


similar to tire same period to 
1993-94. 

The auction of privatised . 
companies’ debt brought to 
£L3bn to August If these put 
vatisation proceeds are 
excluded, the . August deficit 
was £4.49bn and running 
figure for the year is £177 b n, 
compared with £2LSbn In the 
same period last year. 

. Central govemineni benruw* 
tog on its own account was 
£3Abn to August and £L7bn for 
the. financial year to' date,. - 
against £l9bn to the same five . 
months last year. Excluding 
priva tis a t i on proceeds, the fig* . 
ure rose to cs-ihn to August, ' 
£19 Jbn for. the year. 


iHirt 


*»ith 


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“statin 

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H 

■ Si. 4 -5 • = 

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financial times 


WEEKEND SEPTEMBER 17/SEPTEMBER 18 1994 


7 


NEWS: UK 




Lex group seeks big boost for Hyundai sales 


By John Griffiths 

JSSr*** UK’s biggest vehicle 
distribution group, is spending £20m 
to carve out a larger slice of the UK 
car market for Hyundai, the Korean 
car import franchise it controls in 
partnership with Off Group, a Japa- 
nese vehicle importer. 

Us, which took over the Hyundai 
business late last year after losing 
Its long-standing Volvo import fran- 
chise. has made a first-half loss of 
£800,000 on the Korean franchise and 


expects it at best to break even for 
the year as a whole. 

It has decided, however, to spend 
£20m to increase sales and 
strengthen the 170-strong dealer net- 
work on the basis of a new model 
programme and expansion plans by 
Hyundai, Korea’s biggest vehicle 
maker. 

Hyundai, whose output will this 
year exceed lm vehicles for the first 
time, has said it intends to be a 
2m-plus producer - and to join the 
world's top 10 vehicle makers - by 


the end of the decade. It is spending 
more than $4bn (£SL50bn) on expand- 
ing capacity at three of its tour 
plants. 

The Lex Investment comes as Dae- 
woo, another of Korea’s tour main 
vehicle makers, is making final prep- 
arations for the launch of its 
vehicles in the UK at the start of 
next year. Kia, a third, is selling 
about 4,000 cars a year. Like Hyun- 
dai, each has ambitious plan<8 for 
expansion and new mnd#»is 

The rapid expansion of the Korean 


motor industry is causing concern to 
parts of the UK motor trade and 
industry, with some seeing parallels 
with the earlier development of the 
Japanese industry. 

In January the Lex/IM venture 
wiH start selling the Accent Hyun- 
dai has spent $438m on bringing this 
small car to production to replace 
Excel models. A medium-sized 
saloon, coupe and a multipurpose 
vehicle are scheduled to'form part of 

an ex panding range In mining ypar?? 

Mr Chon Sung Won, Hyundai's 


president, said the models would 
help to double Hyundai’s European 
ear sales to nearly 190.000 by the end 
of the decade. 

Last year 9,189 Hyundai vehicles 
were sold in the UK, down from a 
peak of mare than 11,000 at the end 
of the ISSOs. Sales and marketing 
activities this year have already paid 
off, in sales if not finnnnial terms. 
The 9,320 vehicles sold in the eight 
months to the end of August repre- 
sent a 30.6 per cent rise from the 
same period a year ago. 


Mr David Walker, managing direc- 
tor of the UK importer, said sales for 
the full year should be a record 
13.000 to 13,500, with further steady 
increases later. He refused to predict 
what share Hyundai might eventu- 
ally take in the UK market 
Under a deal reached late last year 
Lex acquired a 50.1 per cent stake In 
Hyundai Cars (UK), with IM - which 
took on the Hyundai franchise in 
1982 - holding the rest The joint 
company has a three-year rolling 
contract with Hyundai 


B Appeal against San Francisco ruling expected M Security forces continue monitoring of terrorist groups 

US court bars extradition of IRA man Intelligence 

report helps 
shape strategy 


By Jimmy Bums 


The government is expected to 
appeal against a ruling by a US 
judge blocking the extradition 

Of a convicted IRA g unman 

Ms Barbara Caulfield, a San 
Francisco federal judge, ruled 
against the extradition of Mr 
James Smyth on the grounds 
of “the punishment, detention 
and restrictions on his per- 
sonal liberties n that he would 
face on his return to prison in 
Northern Ireland. 

The ruling drew an angry 
reaction from prison officers in 
Northern Ireland and from 
some unionist officials Mr Fin- 
lay Spratt, chairman of North- 
ern Ireland’s Prison Officers' 
Association, said the judge's 
decision was an “absolute dis- 
grace”. Northern Ireland had 
“one of the most relaxed penal 
systems in the world”. 

The ruling was also seized on 
by Irish- Americans sympa- 
thetic to the republican canse. 
Mr Smyth said he planned to 
stay in the US “until the Brit- 
ish leave Ireland” and to cam- 
paign on behalf of three other 
Irish nationals who remain in 
US prisons. 

UK government officials yes- 
terday played down the politi- 
cal significance of the ruling, 
indicating they would not 
allow it to get in the way of 
their collaboration, with the US 
administration over the cur- 
rent Anglo-Irish peace process. 
They do not believe there has 
been any political interference 
with the judge’s decision. 

Officials think it likely that a 
US court of appeal will eventu- 
ally rule in favour of extradi- 




mr 


IW A 


life*. 


%, & 




•stir ■" 

SJsssI' - 


Toast to freedom: James Smyth (centre) celebrates the coart ruling with friends at Molly Malone’s Dublin Pub in San Francisco 


tion. The case is not expected 
to be settled for some months, 
by which Hm» political devel- 
opments may mean Mr Smyth 
will return voluntarily. 

Mr Smyth was arrested in 
San Francisco in 1993 after 
spending nine years as a fugi- 


tive from British justice. 
Before the latest ruling a 
request for bail had been 
refused by a US appeal court 
Hie government has been 
seeking Mr Smyth's extradition 
so that he can complete a 20- 
year sentence for . the 


attempted murder of a prison 
officer and free trial for taking 
part in an armed mass escape 
from the Maze prison in 1983. 

In May last year a request by 
Judge Coalfield for Whitehall 
documents was refused by the 
government These are thought 


to have included details of UK 
security policy in Northern 
Ireland. 

• Hie Irish government yes- 
terday signalled that it might 
consider releasing some IRA 
prisoners in coining weeks as 
part of the peace process. 


By Jimmy Burns 

The government’s continuing 
refusal to accept unequivocally 
that the IRA ceasefire is per- 
manent, and new policy moves 
announced yesterday, comes 
even though an intelligence 
assessment rays that the IRA’s 
inte rnal disci pline is holding. 

Before announcing ths> lift-, 
ing of the broadcasting ban on 
Sinn Fain, the IRA’s political 

wing, and fhp op ening of same 

border roads, the government 
was advised by security 
experts that the IRA leadership 
remained committed to the 
ceasefire^ 

Yet it is thought security 

nfFWrinla aim adtriaad fha gov- 
ernment that there were hard- 
liners in the IRA who agreed to 
the ceasefire on the basis of 
raised expectations about the 
speed with which the govern-' 
moit might respond. 

The most immediate threat 
of renewed violence is thought 
to come from loyalist paramili- 
taries, who are ignoring the 
advice of more moderate 
unionist politicians and are 
prepared to exploit anxieties in 
the unionist community. The 
referendum announcement is 
aimari at mmimiiring that risk. 

There have been some sym- 
bolic gestures since the IRA 
ceasefire such as ordering Brit- 


ish soldiers to wear berets 
instead of helmets, but secu- 
rity forces have not relaxed 
their monitoring of suspect ter- 
rorists and their sympathisers. 

One area of concern is 
thought to be the civil disobe- 
dience' campaign by Sinn F&n, 
which includes the Illegal 
opening of border crossings. 
The security forces are also 
aware that some army and 
police personnel continue to be 
tracked by IRA “intelligence" 
units. 

British Intelligence is 
thought to he keeping a close 
watch on any arms movements 
by paramilitaries and whether 
they are using the ceasefire to 
re-arm. 

There is still uncertainty 
about whether the ceasefire 
has brought about any signifi- 
cant change in the paramili- 
taries' fundraising activities. 

It is against this background 
that the government appears 
to have opted in public for cau- 
tion - awaiting reassurance 
from security advisers that 
the military situation remains 
under control while being 
seen to maintain an even- 
handed approach to the peace 
process. 

The strategy includes moder- 
ating its objections to a US 
visa being granted to Mr Gerry 
Adams, the Shm F6in leader. 


Diseased 
turbot 
will be 
culled 


By James Buxton, 

Scottish Correspondent 

Thousands of turbot at an 
experimental fish farm on the 
island of Gigha, off the coast 
of Argyll, are to be killed after 
government officials con- 
firmed they were suffering 
from a fish disease which has 
not been recorded in the Brit- 
ish Isles before. 

The fish are affected with 
viral haemorrhagic septicae- 
mia (VHS), a disease which UK 
and European Union legisla- 
tion requires to be eradicated 
if its breaks out. The disease is 
said to be endemic on the Con- 
tinent 

The affected fish farm has 
been placed under quarantine 
for killing and clearance, and 
movement of fish from a 
salmon farm on the island has 
been banned. 

The disease was discovered 
last week at the turbot farm 
which ts owned by the McCon- 
nell Salmon company. Its con- 
firmation as VHS has alarmed 
fish farmers in Scotland, who 
fear that they could be 
affected by the disease or suf- 
fer from bad publicity. 

The Ministry of Agriculture 
says VHS can affect salmon, 
rainbow trout brown trout, 
grayling and other species. 

However, Mr David Wind- 
mill, managing director of 
McConnell Salmon, said the 
company had fonnd no evi- 
dence in the scientific litera- 
ture of VHS affecting salmon, 
which make up the majority of 
fish formed in Scotland. 

Mr Seumas McSporran, sub- 
postmaster on Gigha, which 
has a population of 130, said: 
“It would be a crisis for ns if 
both the fish farms had to 
close.” 

The turbot farm, which has 
been operating for a year in its 
present form, contains about 
200,000 turbot, worth about 
£500,000. McConnell Salmon 
started the operation to see 
whether turbot could be 
fanned as successfully as 
salmon. 

Mr Windmill thought the 
diseasp could have reached the 
fish through their moist feed. 


Living with a six-year silence 


By David Owen 
and Jimmy Bums 

The broadcasting ban on Sinn 
F6in was announced in the 
House of Commons by Mr 
Douglas Hurd, then home sec- 
retary, on October 19 1988 after 
a particularly intense period of 
IRA violence. 

He said that the time had 
come to deny the “easy plat- 
form” provided by radio and 
television to those who “propa- 
gate terrorism". The ban would 
“remove from the men of vio- 
lence an extra weapon which 
the existence of direct access 
to the media has provided for 
than". 

He said: “This is not censor- 
ship, because it does not deal 
with or prohibit the reporting 
of events. Broadly, we are put- 
ting broadcasters on the same 


basis as representatives of the 
written press." 

Hie move was supported by 
unionists, but Mr Roy Hatters- 
ley. then shadow home secre- 
tary, said it would “make the 
government look simulta- 
neously repressive and ridicu- 
lous”. Mr Paddy Ashdown, Lib- 
eral Democrat leader, said the 
action, was “ill-conceived, ill- 
judged and almost certainly 
counter-productive". 

The government’s action 
came more than three years 
after Mrs Margaret Thatcher, 
then prime minis ter, suggested 
after the IRA attack on the 
Troy conference in Brighton 
that the media adopt a volun- 
tary code of conduct denying 
publicity to terrorists and 
hijackers. She said: “We must 
try to find ways to starve the 
terrorist and the hijacker of 


the oxygen of publicity on 
which they depend." 

Initially the policy was 
judged a success. Even Sinn 
Ffiin admitted it was having 
difficulties putting the case for 
the IRA campaign. Since its 
imposition the ban has been 
sidestepped by broadcasters, 
who have used actors' voices 
to dub the words of individuals 
such as Mr Gerry Adams, the 
Sinn F&n president 
In recent months ministers 
have come round to the view - 
held by Sir Patrick Mayhew, 
Northern Ireland secretary - 
that the ban is no longer ach- 
ieving anything and has 
become a lever for people to 
criticise the government 
The Irish government lifted 
its broadcasting ban on Janu- 
ary 19. Irish officials say the 
lifting of the ban has been the 


subject of telephone conversa- 
tions between Mr Major and 
Mr Albert Reynolds, his Irish 
counterpart, in the past week. 

Mr Reynolds, said after oon- 
snltations with Mr Adams and 
Mr John Hume, the SDLP 
leader, that lifting the ban, 
with other measures such as 
lifting border controls, could 
help enforce the IRA leader- 
ship's commitment to the 
ceasefire without alienating 
unionist opinion. 

The lifting of the Irish ban 
Has had little impact on Sinn 
Ffein’s electoral fortunes. 

The view of some Irish offi- 
cials - apparently now shared 
by their UK counterparts - is 
that far from turning Mr 
Adams into k madia star, lift- 
ing the broadcasting ban will 
help remove the myths sur- 
rounding Him 


Council states terms for 
probe into ‘Monklandsgate’ 


By James Buxton, 

Scottish Comwpomlent 

Monklands district council in 
Scotland said yesterday that 
legal advice on powers and 
costs would determine whether 
a public inquiry was held into 
allegations about the way it is 
run. 

The ruling Labour group on 
the council agreed this week to 
seek an inquiry in response to 
pressure which has built up 
over the past 2V4 years. 

It boiled over In June during 
the bitter by-election campaign 
In the Monklands East parlia- 


mentary constituency, which 
was held until his death by 
John Smith, the Labour leader. 
It was widely believed dining 
the campaign that the Scottish 
National party had a strong 
r-Hnnfp of winning the seat. 

The council has faced allega- 
tions - described locally as 

“Monklandsgate" - that it has 
favoured the predominantly 
Raman Catholic town of Coat- 
bridge over the largely Protes- 
tant Airdrie in the allocation of 
capital expenditure and coun- 
cil jobs. . 

Earlier this year Mr Smith 
challenged Mr Ian Lang, Scot- 


tish secretary, to hold an 
inquiry into the allegations, 
which were taken up by 
English Tory MPs. However, 
the government has said it 
would not be justified in bidd- 
ing an inquiry.- 
The Labour group's decision 
to seek an inquiry is the result 
of an initiative by Mrs Helen 
Liddell, who won the seat in 
the by-election with a drasti- 
cally reduced majority and 
confronted the issue during the 
campai gn. She says that people 
with claims or charges against 
the council should come for- 
ward with evidence. 


Barclays to launch phone 
banking service soon 


By ABson Smith 


Rank is to launch a 
i telephone banking 
or personal customers 
rill be integrated with 
* network. 

oove follows an 18- 
pllot study involving 
istomers. The new ser- 
iurclaycall. will be 
1 in November. 

; open every day out 
be available on a 24- 
sls. Initially it will be 


able to deal with 20.000 new 
customers a month. 

After the success of First 
Direct, the telephone hanking 
subsidiary of Midland Bank, all 
the leading banks and some 
‘larger building soci e ties have 
launched some form of tele- 
phone banking; although some 
are still at a pilot stage. 

Midland is still the only bank 
to offer an entirely telephone- 
based service. The others see 
telephone banking as a comple- 
ment to branch hanking. 


Mr Bill Gordon, managing 
director of Barclays Bank UK, 
said the new service repre- 
sented a significant investment 
and would have an impact on 
personal banking similar to the 
launch of the first cash dis- 
pensers. Barclays is thought to 
be putting £20m to £30m into 
the project 

The operation will be based 
in Coventry and could lead to 
the creation of up to 1.300 
jobs in the next two 
years. 


Delayed 
Murdoch 
data bid 
rejected 

The Independent Television 
Commission Hag rejected the 
highest bid for a data broad- 
casting licence because the 
application was received nine 
minutes after the deadline, 
Raymond Snoddy writes. 

Skytext, part of Mr Rupert 
Murdoch's News International 
bid £355,000 a year for the 
licence to broadcast data on 
the ITV television signal com- 
pared with a bid of £78,000 by 
ample Active. 

The FTC has ruled that the 
Skytext hid was “non-valid" 
because it missed the noon 
deadline an August 3. 

The licence is therefore 
likely to be awarded to Simple 
Active, a company controlled 
by the Guardian M«Ha Group, 
which was the only other bid- 
der. 

Mr Justin Cadbury, chief 
executive of Simple Active, 
was at the ITC offices as the 
deadline approached. Two sec- 
onds before it the ITC received 
a nan saying another bid was 
on the way. Mr Cadbury says 
he was there when the Skytext 
application arrived, timed at 
!2J)9pm- The company blamed 
heavy traffic. 

Mr Cadbury said he would 
consider seeking a judicial 
review if the Skytext bid was 
accepted. 


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FINANCIAL TIMES. WEEKEND SEPTEMBER 17/SEPTEMBE R 18 1994 


FINANCIAL TIMES 


Since the telegraph and radio, the 
globe has contracted, spatially, into 
a single targe village. 


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


Saturday September 17 1994 


T hat was Marshall McLu- 

han hack in 1962. So it is 
hardly new to claim that 
today's “information 
superhighway" is creat- 
ing a global village. Much the same 
was said during fta printing revolu- 
tion In the 15th ftaii lii r y. 

If the essence of village life is 
hwn»iiia tB personal communica- 
tion, however, that oft-evoked 
vision is at last becoming a reality. 
The international phone. pan, a rare 
and luxurious item only a lew years 
ago, is now a commodity within 
reach of moat inhabitants of the 
developed world. 

Prices of oaii« are falling as tech- 
nology leaps ahead. They would be 
faffing faster were it not for the 
cartel in which most of the world’s 
national telephone companies col- 
lude to maintain their vast profit 

TT\flTginR 

Now, even the international 
phone cartel is «wn*wg under strain. 
Many observers expect it to break 
up within the next couple of years. 
As it does, crossborder call prices 
will collapse. At that point, at least 
the developed world will feel 
more and more Him McLuhan’s vil- 
lage. 

“We are moving into a distance 
insensitive world in telecoms," 
claims Mr Thomas Luciano, AT&T’s 
director of international settle- 
ments. “Soon it may actually cost 
less tor a Londoner to put a call 
through to New York than to 
Bristol.” 

Even in the developed world, the 
international phone call only 
recently ceased to he a luxury. 
When the first regular phone ser- 
vice evened from London to New 
York in 1927, it cost £458 for a three 
minute call (in today's money). The 
entire transatlantic service was pro- 
vided by radio until 1956, with 
capacity for no more than 20 people 
to bnifl coa ve reatto ns at any one 
time. It was not until the late 1960s 
that undersea cables provided lines 
in the hundreds, and direct 
fHnlHng to New York only in 
1970. 

“Making a transatlantic call was 
a real challenge until the 1970s,” 
says Mr Nefl. Johannessen, director 
of the British Telecom museum in 
London. "Only then did interna- 
tional calls become truly part of the 
national phone system.” 

Two decades on, capac i ty Is abun- 
dant The latest transatlantic fibre- 
optic submarine cable being 
installed will provide 30 times the 
capacity for the same price as its 
state-of-the-art counterpart of a 
decade ago. A cable little thicker 
than a finger, it can carry about 
600,000 simultaneous telephone 
calk. 

STC Submarine Systems, the Lon- 
don-based supplier of telecoms 
cables, is working on a more sophis- 
ticated fibre-optic system able to 
carry 10m simultaneous telephone 
calk -enough for the entire popula- 
tions of London and New York to 
speak to each other at the same 
time down one cable. 

STC estimates that the cost of 
providing a telephone circuit by 
fibre between London and New 
York has fallen by 90 per cent in 
just file past seven years. According 
to its projections, the cost Is set to 
fall to about one tenth oftts current 
level over the next five years. 

The problem is that thaw* faffing 
costs are not fully reflected in 
prices to the consumer. 

At first sight, the .drop in prices 
looks impressive. BTs t ransa t lantic 
rates have fallen by more than a 
third in the past three years. In 


Well done, 
Mr Clarke 


Yesterday was the second 
anniversary of sterling's summary 
eviction from the ERM. That 
Wednesday has indeed proved 
black for the government, whose 
credibility has never recovered. 
But it has been white for the UK 
economy, which has enjoyed an 
accelerating recovery. On Monday, 
the chancellor of the exchequer, 
Mr Kenne th Clarke, saw fit to cel- 
ebrate the anniversary by impos- 
ing the first increase in short-tom 
rates of interest since October 1988 
(except for that on that Wednes- 
day itself). Has he ruined the 
chances for enduring growth, or 
ensured that this recovery will 
run and run? 

Changes in interest rates take 
perhaps two years to affect the 
economy. The lag Is uncertain 
and, in any case, variable. 
Whether base rate at 5.75 per cent, 
rather than 535 per cent, will 
make a decisive difference to per- 
formance two years hence is any- 
body’s guess. But the new base 
rate is not intrinsically unreason- 
able for a country whose counter- 
inflationary credibility is weak. By 
historical standards, it is low: the 
last time base rate was at this 
level (apart from the months since 
the cut to 58 per cent in Novem- 
ber 1993) was hi November 1977. 

The yield curve is strongly 
upward-sloping, which shows the 
market’s expectation that current 
short-term interest rates are low 
(and so expansionary), in relation 
to expected ones. The shape of the 
yield curve reflects the jump in 
yields on longer-term gilts since 
January to £L8 per cent, a rise of 
2.7 percentage points. This was a 
larger jump than in Germany, 
where corresponding bond yields 
are only 7.6 per cent, notwith- 
standing higher infiatinn , in addi- 
tion, the gap between conven- 
tional and index-linked gilts, 
which offers an indication of 
expected inflation, increased from 
3.3 percentage points at the turn 
of the year to close to 5 percentage 
points this month 


in the r etail price index in August 
and a 0.3 per cent increase in pro- 
ducer prices - are little more than 
blips. Excluding mortgage inter- 
est, tin* fflimmii increase in retail 
prices was just 22 per cent,, the 
same as for producer prices. Mean- 
while, July's provisional underly- 
ing increase in average earnings 
remained at June's unworrying 
level of 3% per cent 
This objection can he strength- i 
ened by looking at nominal gross 
domestic product and domestic 
demand, where Increases In the 
year to the second quarter of 1994 
were only 5.6 and 4.3 per cent 
respectively. If the inflation target 
were converted to this form, these 
would be the sorts of increases the 
government would want Is there 
any chance of rapid acceleration? 
A measure that suggests the 
answer is no is broad money (M4), 
which grew only 19 per cent in 
the year to July, vastly below lev- 
els in previous eras of accelerating 

TTrflflLifYfl , 


Fundamental issue 


Lacks credibility 
hi short, the government 
credibility in financial markets, 
not just over its aim of 1 - 2 % per 
cent inflati on nutioateri for fhe end 

of this parliament, hut an its offi- 
cial target of 1-4 per cent Such 
lack of credibility has costs. It 
means, for example, that real 
interest rates on conventional 
gilts are higher than they need be. 
It may also mean a premature re- 
awakening Of Inflation In the 
labour and goods markets. 

The counter-argument is that 
the markets are being hysterical 
On this view, the economy 
remains burdened with large 
amounts of slack. Correspond- 
ingly, the Inflation “shocks" of 
this week - a 09 per cent Increase 


The ftmdamaptyl issue is thw 
extent of excess capacity, on 
which evidence is ambiguous. The 
recovery started, tentatively, 
between the first and second quar- 
ters of 1992 (a few months before 
black-and-white Wednesday). But 
GDP is now only 5.4 per cent 
above its cyclical trough and a 
mere 19 per cent above where it 
was when the recession began. 
Manufacturing output in July was 
L5 per cent below its last cyclical 
peak. Logically, there must be 
substantial excess capacity, partic- 
ularly when unemployment if 
29m. 

There are two objections to this 
line of argument The first is that 
if there were excess capacity (and 
the economy were, correspond- 
ingly, well above its “natural” rate 
of unemployment), inflation 
should be falling . But it is not, 
which suggests that the excess 
capacity may be largely theoreti- 
cal. The second objection is that, 
because of thfa uncertainty, any 
excess capacity should he brought 
into use slowly. It Is depressing, 
but true, that resources rendered 
idle by deep recessions cannot be 
brought back into play with ease. 
Complementary Investment is 
required, which takes time. 

The huge damage caused by 
deep recessions is the main reason 
for trying to avoid a repetition. 
This is more important than 
reaching the (unknown) paint of 
fall capacity as swiftly as possible. 
In erring on the side of caution, 
Mr Clarke showed common seise. 
If needed, he can always press the 
accelerator So Mr Clarke 

deserves praise. He may fall to get 
any from party colleagues. WH 
the British electorate prove more 
understanding? 


Hie price of phone calls is falling and will 
fall faster if the international telecoms 
cartel collapses, says Andrew Adonis 



lyst with Robert Fleming, the brok- 
ers. 

Although this month's change . 
concerns only the US and UK, ibe 
US is by far the most important 
foreign destination for UK calls, 
while the US is the the third most 
popular for US calls. Canada, which 
is +Ha most common dest in at i on for 
outgoing calls from the US. already * 
r emits the same form of competi- 
tion with both the US ami UK. 

New operators are bound to find 
ways of using the new regime to 
offer cut-price services to m a inlan d 
Europe, whatever the formal rotes 
laid down by the US and UK regula- 
tory authorities. - — - -- 

Not wit hstanding the current-con- 
troversy about over-priced calls, 
fl frmanri continues to race ahead. 
Internati onal telephone traffic has 
been growing at a compound rate of 
about 17 per cent a year for the past 


Such growth does not just reflect 
the globalisation of business. 
According to the ITU, residential 
waning is Gontrihuting as much, if 
not more. The residential market is 
burg eoning , thanks in part to the 
increased mobility of populations: 
the US alone gained nearly 9m new 
immigrant^ in the 1980s, while the 
influx into western Europe has been 
running at about 2.5m a year since 
the collapse of the Berlin Wall 


today's money, the price of a three- 
mhmte daytime BT call from Lon- 
don to New York is down from 
nearly £14 20 years ago to less than 
£L50 now. 

But with their cost base shrinking 
ev e n foster, the wiarn international 
carriers are making margins of 
more than 50 per cent on modi of 
their international traffic. On the 
all-important transatlantic route, 
industry estimates suggest that ft 
costs httle more than 7p a Trrfmite 
to direct network charges to deliver 
a call yet the daytime prices 
charged by BT and AT&T average 


Prices of calls would 
be falling foster but 
for die cartel in 
which most telephone 
companies collude to 
maintain their profits 


.‘nearly 45p.a minute. * 

‘ A large part of the reason, far the 
disparity, is that international 
phone prices are fixed by agreement 
between national operators. These 
are mainly monopolies, subject to 
few competitive pressures and 
heavily reliant on international 
calls to sustain their pr ofit s gnd 
subsidise theh local networks. 

The cartel keeps prices artificially 
high, with serious consequences for 
the growth of new “superhighways” 
services and for industrial competi- 
tlveness. This Is particularly dam- 
aging to Europe, where prices for 
cross-border calls axe many timw 
higher than for equivalent dfafan ce 
domestic ones. 


For companies, one way of reduc- 
ing the cost of calls is to lapse tele- 
corns lines and build their own pri- 
vate networks. However, Europeans 
are at a disadvantage here, too. 
Acco rding to a recent survey by the 
UK's Department of Trade and 
Industry, a leased telecoms line 
between France and Germanycoste 
nearly twice as much as the same 
leased fine withto either country, 

and abo ut 16 times as mnrih as a 

200 km leased line to the US. - 

Pressure to reduce prices has had 
to focus on 'the arcane regime whfoh . 
governs international telecoms, 
whereby operators agree prices 
among themselves for delivering 
calls between countries. The agreed 
prices - known as “accounting 
rates" - have traditionally borne lit- 
tle relationship to costs. 

After years of criticism, the cartel 
is cracking, and may be to its last 
phase. Three trends are evident: 

• a breakdown in' co-operation 
between the telecfflns operators that 
sustained the aocountiiig rate 
system; 

• the rise of competing, non-cartel 
carriers in leading markets, notably 
the US and UK; 

9 a growing emphasis on privatisa- 
tion and liberalisation in Europe 
and much of the developing world. 

Multinationals have been lobby- 
ing against the cartel for years, and 
have been helped by divisions to 
the ranks of the telecoms operators. 
Because for more calls are made 
from rather titan to the US, AT&T 
pays out far mere to other carriers 
than It receives in return, ft claims 
flifa hnhflianca js running at f2.4bn 
a year, and is campaigning to 
reduce it . . 

In response to such pressure 


accounting rates haver fallen 
sharply In recent years; mid the . 
International T etecoiniiinnlcatloiia 
Union, which oversees the cartel 
has resolved that accounting rates 
should become “costroriented". ... » 
A row this week between AT&T:. 
and BT tndirartga the distance Still 
to go: AT&T is pressing to - cut ite - 
rate with BT from 31 cents a minute , 
to about 11 cents, hut BT will agree 
to a cut of no more than SB par cent : 
arguing that rednetfohs havq4b be. ' 
“managed". * 

-. Pressure for further .shmpv’ caste*. . 
will nonetheless Intensify following^ 


On the most 
optimistic projections 
it will be decades 
before the phone Is a 
standard household 
item across the gbte . 


an important change to the regular 
toy regime foie to be announced 
next week by the Federal Comteuni- 
cations Commission, the US tele- 
cams regulator. 

it will permit a new form trans- 
atlantic telecoms competition using 
leased lines, which will benefit com- 
panies that make their, business 
from tearing lines from the top car 1 
rlers and reselling them at a dis- 
count to standard tariffs. After the 
change they will be able to connect 
the lines too the public n etwork an 
both ends of the Atlantic, giving 
them wider access than previously. 

“This is a trig nafl in the coffin of 
the international cartel” says Mk 
Laurence Hayworth, telecoms ana- 


I n the UK, WorldCom, a compet- 
itor to international business 
services to BT, is about to 

tmtor thp n arfdanBiri murirat hy 

targeting immigrant c ommunities 
through direct maH “We axe confi- 
dent that lower prices win stimu- 
late a lot more international calls to 
friends and relations,” says Mr 
David Hardwick, managing direc- 
tor. ... 

Far all this the global village will 
still be a somewhat exclusive com- 
muntty.-Most-af the world's popula- 
tion has- no access to a telephone of 
any ifiwd. let aion* fibre-optic Inter- 
national telecommunications and 
mufti-media wizardry. • -r - 
The average global citizen-made 
about seven mfanteg worth of inter- 
national calls to 1991, hut that aver- 
age conceals a huge range: from 
seven hours per cxtiren,to Luxem- 
bourg to six seconds in Africa. 
Barriya fifth of 105 countries Sim 

veyedby the International Telecom- 
munications Union boast more than 
25 phone lines per 190 people, with 
most developing countries provid- 
ing fewer than 5 per 100. The UK 
has four times as many phone lines 

as India. 

The priority in the developing 
world is to build more lines. Invest 
went is accelerottegand new. tech- 
nology - such as “fixed cellular” 
Systems — may flfaah the cost of 
infrastructure. China plans to qua- 
druple its number of phrmft Hues 
nviir tha nwt Ayarip .. 

Yet an the most optimistic projec- 
tions it will stfll be decades 'before 
the phone is a standard hnaaah<iid 
item across’ the globe. <. t ■■■■y. ~ ' 
Governments and phone compa- 
nies are coming to realise that rapid 
expanrion requires a radical recast- 
ing of the existing telecoms regime, 
hi many , Asian, eastern European 
and Latin American countries, gov- 
ernments are now wooing foreign 
telecoms investors instead of seek- 
ing to fund expansion of their 
monopolies largely hy taxing inter 
national oaTla 

As a senior Chinese official put it 
recently. “We used to think It was 
fixe roads that mattered: now we 
realise that telecoms links are more 
important, and a crucial agent for 
growth.” Perhaps in the true- global 
village the motor car will be a 
quai nt relic of the 20th : cen- 
tury. 


MAN in the News: Kenneth Clarke 


S omething strange happened 
this week. The government 
looked like it had recovered 
its grip. Mr Kenneth Clarke 
took the credit Yes we do have a 
new style of chancellor. 

There was the inevitable blip- Mr 
Jeremy Hanley, installed as Conser- 
vative party chairman because he is 
telegenic, di sc ov e red that an avun- 
cular personality Is not enough to 
today’s television studios. 

But Mr Hanley’s slip-ups over 
yobbery and interest rates were a 
sideshow. At centre stage stood the 
solidly self-confident figure of Mr 
Clarke. The government can still 
field someone who knows where he 
is going. 

We should not get carried away. 
Nor should Mr Clarke, who by all 
accounts ended the week in pretty 
exuberant spirits. Remember that 
Budget last November with the big- 
gest tax hike in history. The pun- 
dits loved It The voters hated it 
Were the economic recovery to fal- 
ter, this week's rise to interest rates 
would not look quite so shrewd. 

Even if the latest opinion poll is 
right and Mr Tony Blair’s honey- 
moon as Labour leader is coming to 
aU Mid , iMs gn w m inwii fa sitting 

at the bottom of a deep hole. 

The punters are not thrilled about 
picking up the bill for its mistakes. 
There is more to come. From next 
month they will be paying new 
insurance and travel taxes. Next 
April the value added tax an their 
iwuHny hfric wffl double. 

Nor will higher borrowing costs 
and the extended freeze on public 
sector pay bills have the voters 
win g in g in their baths tills weekend. 
If you are paying a mortgage or are 
selfless enough to be a public ser- 
vice worker, the fed-good factor to 
this economic rec o very is going to 

be a long time c ranin g 
So why the plaudits for the man 
in No 10 (whoops, that should read 
No 11) Downing Street? It’s simple. 
After two years of what Lady 
Thatcher used to call wobble, Mr 
Oarke has defined a strategy which 
looks further ahead than next week. 

His game plan has as Its starting 
point the simple but not uncontrov- 


The one who knows 


where he’s going 


ersial premise that sensible eco- 
nomic policymaking and good poli- 
tics are not mutually exclusive. 

He came back from his summer 
holiday with, two thoug ht* upper- 
most to his mind. To have any 
chance of -winning another election, 
the government must remove the 
deep insecurity caused by the reces- 
sion and by the pace of economic 
change. It has also to reestablish a 
track record for doing what it prom- 
ises. Mr Clarke’s people, the middle 
classes of middle England, are to 
desperate need of reassurance. 

The chancellor ayfl nnes (rightly) 
that after the broken promises of 
1992, the voters don't believe a word 
this government says. The only way 
to change that is to deliver the 
steady growth and low faflaHon ft 
has promised - and to dear up the 
mess in the public finances. If the 
Tories fail this credibility test, they 
may as well not bother. 

That was the context into which 
Mr Clarke slotted his decision to 
call an abrupt halt to the cycle of 
felling interest rates. Inflation Is 
not expected to pick up in the near 
frltuns, but he is thinking 18 nvirtth* 
to two years ahead. 

The message was that here was a 
chancell or who wffl act before he is 
pushed. Perhaps it was no coinci- 
dence that this particular demon- 
stration of decisiveness coincided 
with the second anniversary of the 
event which shredded this govern- 
ment's reputation for economic 
competence: the ejection of «*»*Hng 
from the European wvphanga rate 
mechanism. 

The same s tr a tegy lay behind Mr 
Clarke's decision to rule out tax 
cuts to the Budget this November 
and to warn colleagues it may be 
impossible also to drifter a substan- 
tial electoral bribe in 1995 or 1996. 



Of course he hopes to be able to 
combine fiscal prudence with a 

rlwnwnstnitlnn of tax-CUtttog 

But if it comes to a choice, he will 
(git for sound finance. The voters 
want tax cuts that will last 
No one noticed, but Mr Claxke did 
something rise this week. He qui- 
etly buried the monetarist ideology 
which lay at the heart of the 
Thatcher revolution. 

Look at the reasons he gave for 
raising interest rates. Buoyant 
growth in output, sharp rises in 
exports an n ptm-n in invest- 
ment painted to a shrinking level erf 
spare capacity in the economy. 

The Treasury press release did 
mention the narrow measure of the 
money supply and allude to the 
recent weakness of the exchange 
rate. But the chancellor is not inter- 
ested to excursions along the fog- 


bound monetary motorways on 
which his predecessors found them- 
selves lost during the 1980s. As 
befits a chancellor self-consciously 
proud of his roots in the industrial 
Midlands, he intends to watch the 
real economy. 

Mr Clarke would say that nothing 
that has happened in the past few 
days should s u rp ri se us. His first 
act as chancellor was to tackle pub- 
lic borrowing. It was he who 
decided to inject transparency Into 
interest rate decisions by publish- 
ing the minutes of his monthly 
meetings with Mr Eddie George, 

governor of the Eg^k of En gland. 

And anyone glancing at his record 
at education and the Home 

Office could have guessed his atti- 
tude to public sector pay. 

The trouble is not everyone in the 
Conservative party - or for that 


matter the - shares aU his 

Inner certainties. One or two 
noticed that the Bank had not any- 
way left him much cho ic e m* week 
on intCT Pgt rates. Ken and Eddie 
may be getting on famously, but 
what happens when they fall out? 

Colleagues on the Tory right 
detect in Mr Clarke a politician 
whose convictions are too dose to 
the social democracy of Mr Tony 
Blair, the Labour leader. The obvi- 
ous mutual respect between the two 
men does not help. 

Others h a r bour still darker suspi- 
cions. The chancellor has been 
quiet lately about his enthusiasm 
for Europe. But the Tory sceptics 
fear that, once the economy Is in 
suitable shape, he will again take 
up the frflTra«» qf «rawninmir; integra- 
tion. He has after all admitted he 
would back a single currency. 

Then there is the small matter of 
Mr J ohn Major. aiifaa to both 
camps Insist gossip about rows 
between the prime minister and Mr 
Clarice are unfounded. Sure, the. 
prime minister gets irritated when 
the chancellor will not stop talking 
(Mr Cbrrkp nhrmTil watch for the 
Tnumont when Mr Major st a rt s tap- 
ping his fingers an the table). 

It would be odd also if the prime 
minister were thrilled by. Mr 
Clarke’s cheerful public a*fr « i « rin n fl 

of Ms TnngJurm aTnMHnmtt to SUO- 

ceed him. But the two men are 
agreed on the central planks of eco- 
nomic policy. 

That could change. It was Mr 
Major who promised, during the 
1992 campaign, tax cuts “year by 


The BIEE memorial award 
for Andrew Holmes 


A fund has been established in memory of the 
distinguished Financ i al Times journalist and editor 


dance may fade as the next election 
approaches. There wifi be plenty of 
colleagues trihng him to pot some 
money, bade into the voters' pock- 
ets; that Mr Clarks has gone native 
at the Treasury; and thathe, Mr 
Major, should set the government's 
electoral strategy. Tim prime Hams- 
ter should ignore them, Mr Clarke 
reminded us this week that a dear 
sense of ffirpnHnn jg everything in 
politics; 


./^distinguished Financ i al Times journalist and editor 
of Power ta Europe , Andy Holmes. The British 
Institute of Energy Economics (BIEE) is to give an annual 
research award of £1,000, subject to finding a suitable 
candi date- The arrangements are bring administered by 
BIEE. The award is open to men and women between the 
ages of 21 and 35, resident to the United Kingdom, and 
who are interested m energy issues. 

Applicants should submit a two-page original and non- 
tedtnical research proposal related to energy or to energy 
and the environment; and likely to lead to a 5,000-10,000 
word paper. This proposal should reach the address below 
by October 31, 1994 with a cover note giving details of 
address, phone and fax numbers plus university or 
company affiliation, if any. A shortlist .of applicants will 
then be drawn up and interviewed in London in 
December. The winner will receive half the money on 
winning the award and the remainder on completion of. 
the paper. The results will be announced in early 1995. 

T he aim of the award is to encourage young managers, 
postgraduates and others to think about toe wider issues 
of energy policy. Topics could include the European 
Energy Charter, global warming, the impact of China's 
economic growth on energy demand, policy on the the 
development of alternative transport fuels, the future of 
midear power, third party access to transmission grids etc ' 
These are purely ffiustxaiive. The judges do not wish to 
specify a precise topic, but the subject matter and final 
essay should be fhllycomprehensible to a non-sdentific or 
non-technical audience. The winner may be asked to 

preset his or her findings at a BIEE meeting, and the 
^^p^nmybepnblidiedmAortenedfonninfl.6 

rT Energy Economist . 


Applications s h.o u 1 d be sent to- 
Lucv Plaskett i? -r xt sent to. 


Philip Stephens 


)ealt 




V. 

V 


’’Cr .. . 


. ? J r J * < 


12 v ^ 


*•* <:>) , 








FINANCIAL TIMES WEEKEND SEPTEMBER 17/SEPTEMBER 18 1994 


9 


I 


t was good," the crusty Wash- 
^veteran said of Presi- 
dent Bill Clinton's nationally 
■to t * tevised address on Haiti on 
? Thm-sday evening. "But. of course 
it was not good enough." 

It probably never could have 
been. Forceful as his arguments 
were during his sombre 16-minute 
speech from the Oval Office, the 
president was. as RW Apple put it 
in yesterday's New York Times 
speaking “into the teeth of a howl- 
ing political gale". 

j of his case was 

dilut ed by the instantaneous reac- 
tion from Port-au-Prince. CBS tele- 
vision immediately switched to an 
interview with Lt Gen Raoul Ced- 
ras. Mumbling in French, the leader 
of Haiti's military junta said he was 
ready to die, as any soldier would, 
in defence of his country. 

But the junta was not Mr Clin- 
ton’s prime target His task was to 
convince his own public and politi- 
cians that he had not painted him- 
self into such a corner that he had 
no alternative but to send US forces 
overseas on a combat mission for 
the first time in his presidency - 
and to a country of such insignific- 
ance that its relevance to the US 
national interest Is but dimly under- 
stood and, if grasped, is perceived 
as not worth the expenditure of 
American lives. 

All week Congress and most of 
the media have been inveighing 
against intervention. Senator 
George Mitchell, the majority 
leader, managed to avoid the Senate 
voting against US action this week, 
but he could not prevent a floor 
> debate in which Democrats, includ- 
ing some of Mr Clinton’s most loyal 


Clinton’s least worst option 


Invading Haiti could deepen White 
House isolation, says Jurek Martin 


troops, urged him to pull back. 
Absent an actual invasion, votes in 
both houses may be unavoidable 
next week. Divisions were even 
apparent in the congressional black 
caucus, the strongest advocates of 
restoring Haiti's elected govern- 
ment by force if necessary. 

Partisan criticism was predictably 
vicious. Both Dan Qnayle. the for- 
mer vice-president, and Ross Perot, 
the independent presidential candi- 
date in 1992, said Mr Clinton was 
only acting to restore his ta gg in g 
popularity in advance of Novem- 
ber’s mid-term congressional elec- 
tions. Mr Perot added the twist that 
not serving in the Vietnam War ren- 
dered Mr Clinton morally unqualif- 
ied to send US troops into danger. 
But the balance of opinion from 
both sides of the political atale was 
definitely that Mr Clinton should 
secure the authorisation of Con- 
gress for any intervention. 

That has also been the thrust of 
much editorial comment The New 
York Times wrote yesterday that it 
was "Congress's solemn duty to 
decide on issues of war and peace". 
USA Today warned that "getting in 
is easy; getting out is hard”. The 
Los Angeles Times thought that 
only the flight of the junta could 
justify the president’s sabre-rat- 


tling. Almost alone in offering a 
contrary view among the pundits 
was Michael Elliott in Newsweek, 
who argued the US did have legiti- 
mate national interests in Haiti and 
concluded "the foreign affair s gurus 
can be wrong." 

Mr Clinton showed himself sensi- 
tive to guru opinion by recalling in 
his speech the public statements of 
President George Bush and James 
Baker, his secretary of state, that 
the 1991 coup in Haiti "cannot 
stand”. But members of the former 
administration, including Messrs 
Bush and Baker, have been in the 
vanguard of urging Mr Clin- 
ton not to go to the wall for Ft 
J ean-Bertrand Aristide, the ousted 
president. A statement issued on 
Thursday by Brent Sc o wenrft, the 
former national security adviser, 
was typical. Its headline ran: “Haiti 
revisited: is this trip necessary?" At 
least Mr Clinton was able to assure 
them that Ft Aristide had agreed 
not to seek another term, once 
restored to power. 

StiD, the weight of opposition to 
Mr Clinton's policies should not be 
interpreted as meaning the US 
stands on the brink of Its own con- 
stitutional crisis over the limits of 
presidential authority. As Senator 
Robert Dole, the Republican leader, 





War aims: a Haitian army trainer teaches civilians to fire rifles in preparations to counter a possible US invasion 


conceded, the mere act of an inva- 
sion will dissuade Congress from 
doing anything that could he con- 
strued as undermining the US mili- 
tary mission or suggesting to the 
junta that US resolve is anything 
but absolute. 

Public opinion also is not set in 
concrete, with two overnight polls 
of those who had watched the presi- 
dent speak finding he had won over 
some hearts and minds. This 
improvement might hold up if, as 
expected, the Haitian military 


crumbles quickly and if the opera- 
tion resembles the short, sharp 
incursions into Grenada in 19S3 and 
Panama in 1989. But the experience 
of the Gulf war, popular, congressio- 
nally approved and successfully 
accomplished, shows how fickle 
public opinion can be. Waving the 
flag Is unlikely to have mnch influ- 
ence on the mid-term electio ns . 

To this end, Mr Clinton sought to 
make much of the foot that most US 
troops would be out of Haiti "in 
months not years”, to be replaced 


by an international peacekeeping 
force, drawn from over 20 countries. 
But even this commitment was 
greeted with scepticism by those 
noting, like Mr Scowcroft, that the 
last US invasion of Haiti in 1915 led 
to a 19-year occupation and by oth- 
ers pointing out that international 
support bad been extracted only 
with extreme difficulty. 

Mr Clinton's other justifications 
for action mixed the highly moral - 
the need to end gross human rights 
abuses and the proclamation of 


hemispheric democratic values - 
with the domestically political. The 
cost of caring for refugees and ille- 
gal immigrants is already a big 
issue in Florida (and, for different 
reasons, California), and the presi- 
dent painted a somewhat lurid pic- 
ture of the threats posed by another 
wave of Haitian boat people wash- 
ing up on the Florida shores. 

T hese arguments were also 
given short shrift. Con- 
gressman Newt Gingrich, 
the Republican from Geor- 
gia. found it "disgusting" that the 
president should compare George 
Washington with Fr Aristide, while 
Congressman Porter Goss, the Flo- 
rida Republican, thought the refu- 
gee rationale “disingenuous and 
frankly unhelpful". AM Rosenthal, 
in the New York Times, wondered 
what had happened to a country 
which once welcomed immigrants 
with open arms. 

But, beyond the particular, there 
is the general sense that Mr Clinton 
is about to do something - invade a 
foreign country - which he entered 
his presidency determined to avoid 
at all reasonable cost More even 
than his countless Haitian policy 
twists and turns, it is the often pub- 
lic agony of his decision-making 
processes, also evident in the 
domestic arena, that sometimes 
seems positively unpresidentiaL 
On Thursday night he came over 
as stem and tough, perhaps another 
manifestation of this quicksilver 
man. But by the time he spoke, he 
was damned if he did invade and 
damned If he did not Not backing 
down had become, arguably, the 
lesser of the two evils. 




Lionel Barber on the challenge before Jacques Santer 

Dealt a mixed hand 



P ity Mr Jacques Santer, 
next president of the 
European Commis- 
sion. In the next few 
weeks, the affable Luxembour- 
ger must decide a division of 
portfolios, a thankless task 
which will produce few win- 
ners, many losers, and bruised 
egos all round. 

Mr Santer took soundings 
this week among fellow Euro- 
pean prime ministers. From 
Lisbon to London, he heard 
pleas for special treatment; 
none louder than in Paris 
where the Balladur govern- 
ment had warned of the need 
to respect France’s “weight” in 
the European Union. 

The pressure must be faintly 
unsettling. Mr Santer never 
sought the top executive post 
in Europe, and only secured it 
on the say-so of Chancellor 
Helmut Kohl, who saw the 
Franco-German candidate, Bel- 
gium’s Mr Jean-Luc Dehaene, 
fell to a British veto. 

“This is Santeris first big 
test,” says a Commission offi- 
cial. “It's a test of his grip on 
the new Commission and of his 
clout with member states.” 

Mr Santer inherits a demor- 
alised Commission whose mis- 
sion needs rethinking. His 
preparations for assuming the 
presidency on January 6 next 
year coincide, too, with debate 
on the shape and pace of Euro- 
pean integration which may 
affect his team’s composition. 

Spain insists the balance 
between north and south be 
preserved, despite likely 
enlargement of the EU next 
year to include Austria, Fin- 
land, Sweden and Norway. 
Italy, too, was unnerved by the 
recent paper from the govern- 
ing CDU/CSU coalition in Ger- 
many advocating a “hard core" 
of five member states led by 
France, Germany and the 
Benelux countries. 

For its part, the UK is strug- 
gling to fend off French-led 
attacks on Sir Leon Brittan, 
the chief EU trade negotiator. 
The UK's obstructionism in 
Europe has weakened its bar- 
gaining position; but it is lob- 
bying to persuade the Bonn 
government that keeping Sir 
Leon in charge of economic 
relations with central and east- 
ern Europe would better serve 
German interests than would 
giving his portfolio to the pro- 
tectionist-minded French. 


Mr Santer's greatest con- 
straint is that he may inherit 
as many as seven Commission- 
ers. Of them, Mr Martin Bange- 
mann. the German industry 
commissioner, Mr Karel Van 
Wert, the Belgian competition 
policy commissioner, and Sir 
Leon are heavyweight "barons 
of Brussels” who form a power- 
ful old guard. 

In the summer, Mr Santer 
hinted incumbent commission- 
ers might keep their present 
jobs, though he reserved the 
right to trim or reorganise 
their empires. Opinions differ 
on whether this was a shrewd 
or short-sighted move. 

"Santer passed up the 
chanc e for a real shake-up of 
portfolios,” says an official 
who recalls that Mr Jacques 
Delors’ first move in 1984 was 
to demand commissioners’ res- 
ignations. But another long- 
serving official says Mr San- 
ter's tolerance of the status 
quo was clever as it reduced 
scope for conflict 

Allocating portfolios is the 
Commission president's most 
demonstrable power, but inter- 
ference by member states ren- 
ders it something of a fiction. 
The question is how far Mr 
Santer can pick a team in 
which talent is given due 
weight and the Commission's 
role as umpire, power-broker 


and policy catalyst is pre- 
served. 

His first problem is that 
there are not enough good jobs 
to go around - even more so 
now that the number of com- 
missioners is due to expand 
from 17 to 21 if the Scandina- 
vians and Austrians join the 
EU next year. At most there 
are five top jobs and five medi- 
um-sized portfolios: the rest 
are consolation prizes. 

Trade and competition policy 
are in the top rank as they 
carry statutory powers and the 
authority to negotiate interna- 
tional agreements cm behalf of 
member states. 

H ence the declaration 
of interest - some 
would say presump- 
tuous - by Mr Yves- 
Thlbault de Sflguy, the French 
technocrat who served as 
adviser to a French commis- 
sioner in the early 1980s. 

Agriculture is also vital, not 
just because the Common Agri- 
cultural Policy accounts for 
half of the EU's Ecu70bn 
(£55hn) budget but because fur- 
ther CAP reform is crucial. 
Other attractive jobs include 
the economics portfolio (where 
the Commission has the right 
under the Maastricht treaty to 
recommend which countries 
qualify for monetary union). 


and industry (where Mr Bange- 
wumn wants to expand his tele- 
communications brief). 

Medium-sized jobs include 
environment (which might 
pass to an eco-conscious 
Swede); regional policy (for 
which Mr Neil Kinnock, the 
former UK Labour party leader 
may make a pitch); and social 
policy (a high-profile dossier to 
which Mr Padraig Flynn, the 
Irish commissioner, appears 
committed). Finally, there is 
the job of administering the 
srnglp market Many hope for 
someone more forceful than 
the incumbent, Italian diplo- 
mat Mr Vanni d'Archirafi. 

Mr Santer’s aides are consid- 
ering an expanded "institu- 
tional affairs” portfolio to pre- 
pare for the 1996 inter- 
governmental conference to 
review Maastricht and liaison 
with the newly assertive Euro- 
pean Parliament There is also 
gossip about a new "turbo- 
charged" transport portfolio 
overseeing proposed trans-Eu- 
ropean networks linking north 
and south, east and west 
through rail, telecommunica- 
tions and gas pipelines. 

Transput may be offered to 
Mrs Edith Cresson, former 
French socialist prime minis- 
ter. Best known for comparing 
Japanese workers to ants and 
her aspersions on the sexuality 
of the British male, she is 
awaited in Brussels with some 
trepidation. 

The most pressing problem 
remains reorganisation of the 
C ommiss ion. Mr Santer must 
decide whether to unscramble 
Mr Delors’ most important 
innovation: the creation of a 
commissioner for external 
political affairs, currently Mr 
Hans van den Broek, former 
Dutch foreign minister. 

He must also decide how to 
improve coordination between 
commissioners, their cabinets 
and the career civil service. 
Without action, the bureau- 
cracy will creak along with Its 
duplications and petty infight- 
ing. The most vivid example Is 
the turf-battle between Mr van 
den Broek and Sir Leon. 

It is a formidable challenge. 
Mr Santer might do well to 
ponder Mr Delors' response 
when told Greece wanted him 
to stay on for a few months 
while his succession was 
sorted out. “Never again," he 
said. 


T he abrupt announcement this 
week of the resignation of Mr 
Stephen Friedman, head of US 
Investment bank Goldman Sachs, 
has caused a certain amount of band-rub- 
bing in financial circles. Goldman is prob- 
ably the most ferociously successful 
investment bank in the world. Last year It 
made &2.7tm in pre-tax profit, most of 
which was divided among its 150 part- 
ners. 

This year, the markets have dried up or 
gone the wrong way, and Goldman's prof- 
its have collapsed - some say by more 
than half. Other firms have suffered too: 
but according to the rumour mill, the two 
events must be connected. First pride, 
then the fall: and Mr Friedman is paying 
the price. 

This, says Goldman, is simple nonsense. 
The volatility of markets is a feet of life. 
and it is no use blaming individuals. Mr 
Jon Corzine, who this week was named as 
Mr Friedman's successor. Is co-head of the 
firm's bond business, where most of the 
losses were made. 

The truth, according to Mr Friedman, is 
quite different At 56, he is simply dog- 
tired. An exceedingly wealthy man. he 
wants to exchange life on an aircraft for 
trout fishing at his country seat in Wyo- 
ming 

There seems no reason to doubt him. 
His evident relief this week at handing on 
the burden of office would have been hard 
to counterfeit The question raised by his 
departure is a different one. Mr Friedman 
looks young and fit for his age. If he were 
running an industrial concern like 
Dupont or General Motors, he would have 
at least five more years ahead of him. 
Goldman Is notorious for its fanatical 
devotion to work. Has the point been 
reached where it is only a young man’s 
game? 

Not at all, says Mr Corzine, aged 
47. One of the most productive members 
of the firm’s management committee is 
in his late 50s. People’s attitude to- 
wards work, he says, is a matter of 
individual taste. "Some people like 
reading, some like sports, some just like 
working." 

Nevertheless, the Goldman culture can 
seem to the outsider slightly spooky, even 
monastic. Take, for instance, the apparent 
addiction to running. Mr Friedman is 
reportedly an avid runner, and Mr 
Corzine goes out four or five days a week, 
3 or 4 miles at a time. A story from 
Euromoney magazine - possibly apocry- 
phal, but irresistible - tells of a bankers’ 
meeting Id London which broke up late in 
the evening. The other bankers tottered 
off to hail cabs. The Goldman team 
donned track suits and sprinted off in the 
rain. 

Though harmless enough, this seems 
symptomatic. The Goldman culture does 
not hesitate to reach into its members' 
spare time. The firm's published state- 
ment of business principles says: "We 
expect our people to Tnamtem Ugh ethical 
standards in everything they do, berth in 
their work for the firm and in their per- 
sonal lives." Or, as Mr Friedman put it in 
last year’s annual review: "We recognise 
. . . that we must be prudent In our bust- 


Bank for 
millionaire 
monks 

Tony Jackson 

assesses the changes 
in management and 
profitability at 
Goldman Sachs 



ness and personal planning and in our 
lifestyles.” 

It is a principle from which Mr Corzine 
does not dissent What matters for a 
financial institution, be says, is reputa- 
tion, both public and private. "We don't 
try to dictate terms on how people handle 
their personal lives, but as a partner and 
a leader you have to be credible." 

The private nature of the firm obviously 
plays an important part in its success. 
This week's announcement however, set 
another hare running in the financial 
press: the familia r rumour that Goldman 
- virtually unique among banks of its size 
in retaining' its partnership structure - is 
hungry for capital, and may have to con- 
sider going public. 

Mr Corzine, like Mr Friedman before 
him, gives this short shrift. The firm is 
always looking to raise capital, be says, if 
the terms are right. It raised S200m of 
equity from financial institntious last 
year. Something under a quarter of its 
equity belongs to outsiders at present. 
But going public, be says, "is not on my 
practical agenda today, nor on my pri- 
mary agenda for the future”. 

Perhaps the real threat to privacy 


comes from pressures of a different kind. 
Last year’s S2.7bn profit was rather larger 
than Goldman’s entire wage bill. That 
is, tbe 150 partners received more 
in aggregate than their 8,000-odd em- 
ployees. 

The question of fair distribution, says 
Mr Corzine, is a perennial one for Gold- 
man. Compared with 10 or 20 years ago, 
the system feels to him fairer than it was, 
"though of course, I may be biased”. More 
fundamentally, he argues, the bulk of the 
profit is left within the firm to make a 
return going forward for partners and 
employees alike. "Yon must remember 
that the vast majority of that money is 
reinvested and at risk.” 

This is perhaps a little disingenuous. 
Anyone earning around $15m a year, as 
the average Goldman partner did last 
year, will aim to invest the bulk of it for 
the future. Goldman’s equity capital at 
the start of last year totalled S3.7hn, so 
tiie $2.7bn of profit represented a return 
of 73 per cent Faced with an opportunity 
like that, no investor in his senses would 
put his money anywhere else. 

F or Goldman’s employees, jostling 
around below partnership level, 
one obvious question is how many 
partners the firm can take on 
without exploding. According to Mr 
Corzine. this is not an immediate prob- 
lem. "At some point the group gets too 
extended to be a community of interest 
That’s probably not 250.” In any case, he 
points out expansion is not inevitable. 
"Theoretically, If opportunities in the 
financial arena were to decline over the 
next decade, we could have fewer part- 
ners.” 

This brings us back to the question of 
current trading. It has been, in Mr 
Corzine’s restrained phrase, a difficult 
yean not just in the turbulent first quar- 
ter, when the Federal Reserve Board 
raised US Interest rates unexpectedly, but 
in successive quartos as well. A lot of 
money was raised in world bond markets 
in 1992-93, when interest rates were low. 
“That was a great window of opportunity, 
and a lot of people jumped through ft,” he 
says. Business this year is down accord- 
ingly: Goldman's underwriting of munici- 
pal bonds, for instance, is down 50 per 
cent by volume. 

"So some of our vital core business has 
slowed dramatically,” Mr Corzine says. 
"That might go on for another couple of 
years. No one can predict.” Meanwhile, 
1994 looks like joining 1979 and 1987 as a 
memorably had year for the industry: not 
as bad as tbe other two, says Mir Corzine, 
unless maybe you were focused on Euro- 
pean bonds. "It might depend on what 
generation you put the question to.” 

This does not mean, he insists, that 
Goldman is pulling in its horns. "There 
are lessons to be learnt. You get overly 
optimistic in the bountiful environment of 
bull markets. It was very easy in 1998 to 
think you ought to have a presence in 
every capital market in every major coun- 
try In the world. There are ways of doing 
things more efficiently. Bnt that's not 
retrenchment It’s adjusting the pace of 
expansion.” 


Car a persuasive option 


From Mr Michael London. 

Sir, Richard Donkin asks 
(Jobs: September 14): “Why do 
we persist with the company 
car as a form of reward? Thfi 
answer Is quite simple. It is 
still a very cost-effective way 
of providing a benefit to 

employees. 

The typical cost to an 
employer of providing an 
employee with a car priced at 
£20.000 is about £9,000 a year 
{including private fuel and 
Class 1A national insurance 
contributions). 

The cost (including employ- 
er's National Insurance contri- 
butions) of paying an employee 
a sufficient cash allowance to 
operate a similar car himself 
out of after-tax earnings is 


about £12^00 a year. 

Employees understand this 
quite welL Our recent survey, 
Company Cars and Flexible 
Benefits, shows that 90 per 
cent of employees who are 
offered a cash allowance 
instead of a company car 
choose to stick with the cars. 
The average cash allowance of 
£6,000 a year for £20,000 cars is 
not sufficient in most cases to 
persuade them to take on the 
costs of running their own 
cars. 

Michael Land on, 
senior consultant. 

The Wyatt Company (UK). 
Park Gate, 

21 Tothill Street, 

Westminster ; 

London SW1H 9LL 


it age taxed to extinction 


Y Alan Ipekian. 

Antony Thorncrort s 
“Houghton Hall plans 
Kile". (September 10 ill) 
cores the mutually 
> e ends of the Treasury 
he Department of 
1 Heritage: taxing the 
■atic domains to near 
m while seeking to pre- 


serve the heritage of the 
nation. With little revenue and 
contents sold, maintenance 
costs coupled with unbridled 
taxation should surely end the 
greatness of any country 
house. 

Alan Ipekian, 

1400 Dixie Road, State 1409. 
Mississuaga, Ontario, Canada 


LETTERS TO THE EDITOR 


Number One Southwark Bridge, London SE1 9HL 
Fax 071 873 5938. Letters transmitted should be dearly typed and not hand written. Please set fax for finest resolution 


Policy change a threat to home owners 


Prom Mr Andrew Longhurst 

Sir, Your report, “Plan to 
base mortgage benefit on ‘stan- 
dard’ interest rate” (September 
14) raises a number of issues. 

In December 1991 the Coun- 
cil of Mortgage Lenders and 
the government took a number 
of initiatives to help solve the 
problem of rapidly increasing 
mortgage possessions and 
arrears. Since that time the 
number of possessions has 
fallen by more than 35 per 
cent 

A key policy change was the 
agreement of the government 


to make the payment of 

income support direct to mort- 
gage lenders rather than to 
unemployed borrowers. 

In the knowledge that 
income support would be paid 
direct, lenders agreed not 
to take possession in cases 
where mortgage interest pay- 
ments are covered by income 
support. 

Mortgage lenders generally 
currently adhere to that agree- 
ment. However, it will not he 
possible for them to do so it as 
reported, income support pay- 
ments are made on the basis of 


a “standard" interest rate 
which is less than the mort- 
gage interest due. 

Under those circumstances 
no borrower claiming income 
support will be in a position 
where their interest payments 
are covered by the Department 
of Social Security. The inevita- 
ble result. In what now seems 
likely to be a period of rising 
interest rates, is an increase in 
the number of arrears and pos- 
sessions, with consequent 
increased pressure on the gov- 
ernment's social housing 
budget 


There is no getting away 
from the fact that, having 
encouraged people out of pub- 
lic rented accommodation into 
home ownership, the govern- 
ment is now considering cuts 
which will pull their hearth 
rags from under them. 

For many, losing their job 
will mean losing their home if 
income support for mortgage 
interest is cut back. 

Andrew Longhurst, 
chairman. 

Council of Mortgage benders, 

3 SavUe Row, 

London W1X 1AF 


Absence of hat gives food for thought when choosing a restaurant 


From Mrs C A McCann. 

Sir, 1 refer to the FT guide, 
“Eating out in London”, which 
accompanied the issue of Sep- 
tember 10/n and, in particular, 
to the photograph of Marco 
Pierre White of the Hyde Park 
Hotel Restaurant which accom- 


panied your article, "Attrac- 
tions an their own". 

I was amazed that Marco 
Pierre White was not wearing 
his chefs hat , nor were any of 
his colleagues for that matter. 
Ala:, Mr White’s long forelock 
appeared to be at a “danger- 


ous” angle over the food he 
was working with. The photo- 
graph resembled a scene from 
“Joe’s cafe” rather than a 
kitchen in a top London hotel. 

By comparison, the chef at 
the Connaught Hotel, featured 
in “At a glance” on the oppo- 


site page, is dressed in his 
“whites” and hat, as are his 
colleagues also pictured. In the 
circumstances, I think I will 
opt to dine at the fVmnflug ht! 
C A McCann, 

46 West Drive, 

Caldecote, Cambridge CBS 7NY 


Enterprising university 


From Professor Gordon 
Conway. 

Sir, The University of Sussex 
was built . . far removed 
from the inner cities”, accord- 
ing to John Authers and John 
Willman (“Dreaming spires on 
city rubble". September 10/lH. 
But the campus is only 5 miles 
from the centre of Brighton, a 
town which has suffered more 
than most in the recession and 
is characterised by levels of 
unemployment and poverty 
normally associated with the 
large conurbations. 

Our response, in partnership 
with tbe University of 
Brighton. Brighton College of 
Technology, the local authori- 
ties and the Sussex Training 
and Enterprise Council, has 
been to create an academic cor- 


ridor designed to stimulate the 
growth of enterprise based on 
2lst century technology. 

We have raised £2m from 
Brighton and East Sussex 
councils and Seeboard for a 
flagship innovation centre 
which is to be launched next 
week as an event during the 
corridor’s “Festival of Innova- 
tion". 

We believe it is possible 
effectively to marry research of 
international and national 
excellence to significant 
growth in the local economy, 
and that the key to success lies 
in this kind of partnership, 
Gordon Conway, 
vice-chancellor. 

University of Sussex, 

Fainter. 

Brighton BN1 9RH 


Root out ‘spiv’ culture too 


From Mr Neil Kerr. 

Sir, It is encouraging that Mr 
John Major has declared war 
on “yob culture” (“Major 
attacks *yob culture’ in fresh 
law and order drive”, Septem- 
ber 10). Perhaps his next cam- 
paign could address problems 
arising from a similarly evi- 


dent - and equally pernicious 
- “spiv culture”. But maybe, as 
a predecessor. Sir Robert Wal- 
pole. discovered in an earlier 
century, this culture has its 
roots far too close to home. 
Neil Kerr, 

109 Bamsbury Street, 

London N1 IEP 


i\'' 


N 





10 


X 


FINANCIAL TIMES WEEKEND SEPTEMBER 1 7/SEPTEMBER I S 1994 


COMPANY NEWS: UK 


Shares shed 15p on cautious statement about second half trading 

Next advances 60% to £37m 



David Jones: difficult to marnfain same percentage growth 


By Neil Buddey 

Cautious statements on future 
trading led to a 15p Call in the 
share price of Next, the fashion 
retailer, to 243p, in spite of a 60 
per cent rise in interim pre-tax 
profits from £23m to £36J9m. 

The profits exceeded fore- 
casts of between £3 2m and 
£35m, and the interim dividend 
is raised S3 per cent from 1.5p 
to 2.75p - beating the highest 
forecasts of 2.5p. 

Next also said sales were 
currently running 13 per cent 
ahead of last year. 

However, the market seized 
upon a warning from Ur David 
Jones, chief executive, that 
Next would come up against 
“more demanding" compara- 
tive sales figures in the 
months before Christmas, 
which might make it difficult 
to maintain the same percent- 
age growth. 

He said sales at this stage 
last year were r unning 10 per 
cent ahead of 1992, but by 
Christmas the total increase 
had reached 18 per cent 

His caution led to fears that 
Next's recovery since the early 
1990s was largely complete and 
that future growth would be 
slower. 


They made it quite clear it 
is going to be difficult to get 
much more out of the busi- 
ness,” said Mr Nick Hawkins, 
retail analyst at Kleinwort 
Benson. 

Next is trying out four stores 
in the US, but said it would not 
decide whether to expand there 
until next year. US trading 
losses and start-up costs were 
£900,000, down from £L.lm last 
year. 


The group is also launching 
the natural cosmetics chain 
Bath & Body Works in the UK, 
in a 50:50 joint venture with 
The Limited, the chain's US 
parent. It expects to have five 
stores trading by Christ- 
mas. 

Group sales in the six 
months to July 31 increased 
from E233 2rn to £274J5m, ?nd 
operating profits from £20. Lm 
to £32.9m. 


That represented an increase 
in operating margin from 8.6 
per cent to almost 12 per 
cent 

Mr Jones said there was lit- 
tle inflation in selling prices, 
and the amalgamation of 
Next's high street and mail 
order ranges had enabled it to 
get better buying terms from 
suppliers. 

Sales in Next's 302 stores 
Increased by 19 per cent to 
£19L6m (£160 .9m), with operat- 
ing profits up from £11 An to 
£19. lm. Mr Jones said Next 
would continue to try to 
increase the size of some of its 
stores. 

Turnover in Next Directory, 
the mail order division, also 
rose by 19 per cent, from 
£46 to £55J3m, and operat- 
ing profits from £3 An to £5 An. 

Total profits from the Club 
24 credit manag e ment business 
were unchanged at £5An. 

Profits from other activities, 
including property and the 
Call scan software business, 
were £&9m. 

Net interest receivable was 
£4m (BL9m). 

After tax of £9.7m (£2. 6m) 
earnings per share worked 
through at 7.3p compared with 
5£p. 


44% rise in malt sales helps 
Macallan-Glenlivet to £2.6m 


Bruntcliffe 
jumps and sells 
lossmaker 

Bruntcliffe Aggregates, the 
quarry and quarry products 
group, reported pretax profits 
sharply up from £132,000 to 
£792,000 In the six months to 
end-June. 

Despite “unusually severe 
weather conditions during the 
first quarter” in Scotland and 
the US, volumes in the aggre- 
gates business recovered well, 
the directors said, and profit- 
ability in the division had 
exceeded budget 

The performance of Lorasen 
Coal in the US continued to be 
disappointing with losses of 
£374,000. It is being sold to 
Lorasen Inc, a subsidiary of 
Mineral & General Invest- 
ments, for S2.42m (£L56m). 

Turnover totalled £9.4m 
(£305,000) with £2.06m from 
acquisitions. 

An interim dividend of 0.4p 
is being paid from earnings 
pm- share of OJp (LZp). 


By Roderick Oran, 

Consumer Industries Editor 

A surge in sales of Macallan 
single malt whisky helped 
Macallan-Glenlivet lift interim 
pre-tax profits by almost one- 
fifth from £2.16m to rasBm 
In a Scotch market that 
remains sluggish after the 

recession, ManaTlan sin gle mal t 

sales rose 44 per cent overall 
with the UK and US showing 
gains of more than 30 per cent 
This is some kind of realisa- 
tion of all the work we've done 
over the years,” said Mr Wil- 
liam Philli ps, manag in g direc- 
tor. All of its more than 25 
export markets were profitable. 

Several analysts, surprised 
by the jump, attributed some 
of the rise to restocking by 
Macallan's distributors and the 
effect of new distribution 
agreements made in recent 


years. Sales to drinkers were 
thought to have risen more 
slowly. 

The second-half advance 
would be more moderate, Mr 
Phillips added, but the trend 
was to a “significantly higher 
level of growth” than in the 
past 

On turnover of £7. 14m 
(£6.49m) for the six months to 
June 30, operating profits rose 
25 per cent from £1.88m to 
£2^4m thanks to increased vol- 
ume and cost sayings. Net 
interest received slipped from 
£279,00 to £233400. 

The Interim dividend is 
increased to 0.41p (0.36p) from 
earnings per share of 1.57p 
(L37p). 

New fillings, purchases by 
blenders of Macallan's newly 
distilled spirits, fell by 30 per 
cent from a year earlier. The 
decline, which began several 


years ago, should bottom out 
this year, Mr Phillips said. 
Sales could begin to recover 
next year but would certainly 
do so in 1996. 

Confident of growth, Macal- 
lan's has stepped up its whisky 
stocks and is finishing off the 
fitting out of a 35m litre ware- 
house built in 1989. 


CH Bailey in red 

CH Bailey, whose principal 
activities are engineering, ship 
repairing, leisure and business 
ami financial manag ement, 
incurred pre-tax losses of 
£189.710 for the year ended 
March 25 1994, compared with 
profits of £446,379. Turnover 
was down 27 per cent from 
£3.71m to £2.7m. 

Losses per share were 0.32p 
(0.74p earnings). 


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technical phrases arc explained, enabling you lo 
make the most of the financial sections. 


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FINANCIAL TIMES 



Midland Independent 

doubles after listing 


Harrods 
prepares 
Kurt Geiger 
for market 

By Nea Buddey 

Harrods Holdings, the group 
owned by the Fayed brothers 
which includes the tomans 
London department store, is 
preparing Kurt Geiger, its 
upmarket shoe retailing sub- 
sidiary, for a stock exchange 
flotation next year. 

The group has confirmed Mr 
James Walsh, who has been 
acting chief executive of Knrt 
Geiger for several months, in 
the role and said it was the 
beginning of a process 
‘intended to lead to Dotation 
as a public company next 
year”. That would include the 
appointment of a non-execn- 

tiTC Pllfl ITTMtl. 

Mr Walsh, 45, was previ- 
ously group finance director. 
His successor in that role is 
Mr Omar Bay o ami, 39, 
recruited from SG Warburg, 
the merchant bank, where he 
played a prominent part in the 
Fayeds* £413m flotation of the 
House of Fraser department 
store chain. Mr Bayonmi will 
also be chief financial 
officer of Harrods department 
store. 

Knrt Geiger is one of several 
businesses, including Turnbull 
& Asser, the shirt maker, and 
the Carlton Highland Hotel in 
Edinburgh, that remained 
with Harrods when House of 
Fraser was floated. 

It has two trading names, 
Knrt Geiger and Carvela, with 
110 outlets In the UK, includ- 
ing standalone stores in Lon- 
don's Bond Street and Sloane 
Street, and many concessions 
in department stores - partic- 
ularly in House of Fraser. It is 
the biggest shoe retailer in 
London stores. 

It made operating profits 
last year of £4m on sales of 
£52.8m. Analysts said those 
figures suggested a flotation 
might value the business at 

about £3Gra-£40m. 

Harrods said Kurt Geiger 
stood “an extremely good 
chance of trading successfully 
as an independent company”. 


Electricity 
compaoles’share buy 

Three electricity companies 
reported share buybacks yes- 
terday. Manwefa said it had 
bought lm of its own shares at 
835p on Thursday, taking to 
3.15m the total purchases, rep- 
resenting 2.64 per cent trf the 
equity. 

Norweb said it had bought 
L5m shares at 795p yesterday 
. This represents 0.87 per cent 
of the share capital immedi- 
ately prior to the purchase. 

Also Sooth Wales Electricity 
bought 400.000 of its shares at 
817p yesterday. 


By Raymond Snoddy 

Midland Independent 
Newspapers, publisher of the 
Birmingham Post and Mall, 
yesterday published its first 
results since listing on the 
London Stock exchange, with 
pre-tax profits more t-hun dou- 
bled to £4.8m for the six 
months to the end of June. 

Pro-forma profits, stripping 
out the effects of interest on 
debt left over from a manage- 
ment buy-out saw a rise of 28 
per cent to £7.7m (Efim). 

Mr Chris Oakley, chief exec- 
utive of MIN. which also pub- 
lishes specialist magazines, 
said: “Prospect s for regional 
newspapers are good and we 
have identified opportunities 
for expansion by a number of 
newspaper launches.” Talks 
are under way about possible 
acquisitions. 

He emphasised that the 
group was successfully count- 
ering the national newspaper 
price-cutting war and that the 
circulations of the Birmingham 


By Peggy Hofllnger 

Betterware, the direct selling 
group, lost more than a third 
of its market value yesterday 
as it issued its third profits 
warning in five months. 

The company’s shares fell by 
23p to 50p, having plummeted 
over the last 14 months from a 
peak of 278p. Analysts pulled 
back full-year forecasts from 
£Um to about £9m. 

Mr Andrew Cohen, chief 
executive, said first half oper- 
ating profits were not expected 
to be more than £4m, compared 
with £7m Last year. 

The decline was blamed on 
difficulties recruiting people to 
distribute catalogues in the 
UK, stock delivery problems 
arising from the move to a new 
distribution centre, and 
increased investment in inter- 


By Paul Taylor 

Quebecor, the Canadian 
publishing and forestry group, 
has ended its dispissions with 
Hunterprint, the lossmaking 
UK printer. 

The Montreal-based newspa- 
per publisher and commercial 
printer, announced last month 
that it was considering making 
an offer for debt-laden Hunter- 
print 

In a brief statement yester- 


Post, the Coventry Evening 
Telegraph and the Sunday Mer- 
cury had actually increased. 
There had been extra costs 
owing to “unprecedented levels 
of sales promotion”. 

Mr Oakley said the feet that 
the Birmingham Post had 
increased circulation demon- 
strated "the strength of 
regional newspapers”. 

The results came the day 
afte r MIN announced that it 
hail teamed up with Mirror 
Group to develop cable televi- 
sion programming. Mirror 
p l an s a 24-hour cable channel 
and MIN will produce local 
pngr ammflg for the Birming- 
ham area. Mr Oakley believes 
the local Birmingham seg- 
ments could begin at two to 
three hoars a day and increase 
to five to six hours a day. 

The company’s free newspa- 
pers in Birmingham, which 
have been loss-makers in the 
first half of 1993, have now 
come Into profit. The profit 
margin on the group's newspa- 
per publishing operations is 


national expansion. Betterware 
baa committed to provide up to 
$5m (£3.2m) over time in a 
joint venture, also announced 
yesterday, with Avon, the 
world's largest direct seller of 
beauty products, to sell house- 
hold products in North and 
South America. 

Mr Cohen said the cash-rich 
Betterware was not in any seri- 
ous difficulty, in spite of the 
market's reaction. "We have an 
exemplary record on past per- 
formance, we make full disclo- 
sure, comply with Cadbury. We 
have never felled to do some- 
thing we said we would do. 
The one thing we have felled 
to do is meet analysts’ expecta- 
tions." he said. 

The group issued a caution 
on trading in May with its 
annual results and again in 
July. 


day Hunterpnnfs board said it 
understood Quebecor bad 
decided not to proceed, “as a 
result of a change in its strate- 
gic plans.” 

The statement added that 
Hunterprint was trading in 
line with the projections it 
had supplied to its bankers 
when it sold Hardy Printers, 
its only active subsidiary, 
to a management buy-out 
team for £L85m in early Aug- 
ust 


slightly down at 20.3 per cent, 
reflecting the impact of a full 
fiair year's contribution from 
lower margin free weeklies in 
the East Midlands. 

Following the March public 
offer, which raised £96m net of 
expenses at the end of June, 
MIN’s net borrowings stood at 
£37.8m, down from £134.8m at 
the end of December. 

Operating profits were up 15 
per cent to £9m (£7.8m) on 
turnover that rose from £37.7m 
to £45m. Earnings per share 
were up at 3-8Lp (259p) - pro 
forma an increase of 22 per 
cent to 5.14p (4.21p). The 
interim dividend is l.lp. 

Sir Norman Fowler, chair- 
man. said although total adver- 
tising revenue grew there were 
wide variations across catego- 
ries. Recruitment advertising 
showed strong growth while 
cars and property bad yet to 
show significant improvement 

Pre-tax profits for the full 
year are expected to be £15m to 
£16m. Hie share price closed 
14p down at 140p. 


Pearson ups 
Recoletos 
stake to 47% 

By Raymond Snoddy 

Pearson, the media and 
entertainment group, has 
increased Its stake in Recole- 
tos, the Spanish publishing 
group, to 47 per cent 

The additional stake of 8 per 
cent cost about £ 12.4m. valu- 
ing the company, which pub- 
lishes Expansion, the business 
and financial daily, at about 
£155HL 

Mr Frank Barlow, managing 
director of Pearson, bought a 
small stake in Recoletos more 
than five years ago when he 
was chief executive of the 
Financial limes. It was part of 
a policy of taking stakes in 
publishers of business and 
financial titles around the 
world. Since then Pearson has 
been building its stake in the 
group with the consent of the 
Spanish shareholders. 

It seems likely that Pearson 
will eventually take control of 
the group, which also pub- 
lishes Marca, Spain's top sev- 
en-days-a-week sports paper. 

The Recoletos titles also 
include Telva, a women's mag- 
azine, and Diario Medico, a 
dally medical paper. 


Correction 

S&U chairman 

Mi- Derek Coombs, chairman 
of S&U, was incorrectly named 
in a report on the consumer 
credit company's results pub- 
lished yesterday. 


Another warning 
from Betterware 


Quebecor ends offer 
talks with Hunterprint 


RBC sells fund investment activity 


Royal Bank of Scotland has reached a 
tentative agreement to merge, Capital 
House Investment Management, its fond 
management subsidiary, with Newton 
Investment Management RBS would take 
a one- third stake for £25m in the com- 
bined entity, writes Norma Cohen. 

The move creates a new institution with 
about £8bn under management 
RBS said last spring it was holding 
talks with Newton, one of the most suc- 
cessful UK managers of institutional pen- 
non fund assets. It has about £5bn of 
assets under management 
The move stunned the industry. Newton 
has a policy of limiting the pace of its 


expansion, saying it will never take on 
more new assets than it can successfully 
manage. 

Mr Jonathan Powell, marketing director 
at Newton, said the privately-held group 
agreed to the transaction because it would 
greatly expand its non-pension fund 
investment activities. Two-thirds of Capi- 
tal House's assets are those of private 
clients, unit trusts and Personal Equity 
Plans. 

In addition RBS would market Newton- 
managed unit trusts exclusively through 
its 750-branch network. 

Under the terms RBS will take a 33.16 
per cent stake in the new company by 


transfering all of Capital Houses’s share 
capital to Newton to exchange for new 
Newton shares and the purchase of exist- 
ing shares from Newton shareholders. 
These include Mr Stewart Newton, a foun- 
ding partner, and about 50 others. The 
deal, which is expected to be concluded 
before November 30, allows some of the 
partners to be paid in long-term notes 
which can be exercised at a tune whan it 
will be tax advantageous for them to do 
so. 

It has also been agreed in principle that 
Newton will have the right to require 
Royal Bank to subscribe for up to £l0m of 
cumulative redeemable preference shares. 


Seeking support from a competitor 

Norma Cohen on the background to Newton Investment’s expansion 


T he decision by Newton 
Investment Manage- 
ment. arguably the most 
successful independent pen- 
sion fond manager in the UK, 
to take over the assets of a 
much weaker competitor is a 
sign of the times. 

The move surprising, how- 
ever. because Newton has 
made much of its desire to 
slow its expansion, closing its 
doors to new clients for a two- 
year period in xmd-1992. 

While fund management 
companies concentrated furi- 
ously on building up their ros- 
ter of blue-chip pension 
scheme clients in the 1980s, 
retail services at most houses 
foded to the background. 

But now, with pension fund 
regulatory reform on the hori- 
zon, and a growing recognition 
of the fickle quality of pension 
fund business, fund manage- 


ment companies are re-think- 
mg their mix of business. 

Recently, several leading 
fund managers, including Mer- 
cury Asset Management, the 
largest in the UK. have decided 
to concentrate on building up 
their retail businesses for fear 
of becoming too vulnerable to 
a downturn in the pension 
fUnd market 

“From Newton's point of 
view, we have a lot of depen- 
dency on one area of the busi- 
ness. We want to diversify,” 
said Mr Jonathan Powell, mar- 
keting director. 

About four-fifths of Newton’s 
existing £5bn in assets under 
management are those of pen- 
sion schemes, with the balance 
split between private client 
funds and retail products such 
as unit trusts and Personal 
Equity Plans. 

“Private clients will stick 


with you through thick and 
thin as long as you make prof- 
its for them over time,” Mr 
Powell said. "Pension funds 
are volatile and will sack you 
immediately.” 

Newton has calculated that 
it needs a mix of businesses if 
it is to be able to count on 
long-term growth. The move- 
ment of pension funds into the 
hands of fund managers is 
largely determined by a hand- 
fid of pension consultants. 

If Newton should lose favour 
with these, Its future would be 
in doubt, Mr Powell said. 

The mix of business at Capi- 
tal House Investment Manage- 
ment, the subsidiary of Royal 
Bank of Scotland, with which 
Newton is merging, is almost a 
mirror image. Capital House 
has only one big pension fund 
client. Royal Bank's own pen- 
sion scheme with about £ibn 


in assets. The remainder of its 
£3bn is in retail funds and pri- 
vate client assets. 

Their perfor mance; also con- 
trast greatly. Data from Com- 
bined Actuarial Performance 
Services show that in 1993, 
Newton's median segregated 
pension fund returned 37.4 per 
cent against an industry 
median of 29.2 per cent. 

By contrast, the RBS Pension 
scheme earned returns 5 per- 
centage points below the CAPS 
median in 1993. 

However perhaps the most 
significant reason for Newton 
was the access the merger 
Would give it to a distribution 
outlet for tts retail funds. 

“The big growth in the retail 
area is through bancassur- 
ance.** Mr Powell said. “We are 
the only independent fund 
manager with access to a ban- 
cassurance outlet” 


Low oil prices hit Aran Energy 


Exceptionally low oil prices 
contributed to pre-tax profits 
at Aran Energy, the Dublin- 
based oil exploration and pro- 
duction company, falling from 
I£3-37m to I£Lllm (£lD9m) in 
the first half of 1994. 

The average price during the 
period was $14.1. against $UU3 
offsetting an increase to pro- 
duction to 13,600 barrels of oil 


equivalent per day compared 
with 8j>7Q hoed last year. 

Turnover was l£37.8m 
(I£31_2m) for operating profits 
of I£lJ91m (l£L37m). 

The company is establishing 
an American Depositary 
Receipt programme on the 
Nasdaq market 

Earnings per share came out 
at 0.23p (lp). 


DIVIDENDS ANNOUNCED 


Current 

payment 


Jnt 


Bruntcliffe 

Ely (Wimbledon) 

Keller int 

Ma ft aB i PY i 

Midland bid News— Jnt 

Next int 

OS ini 


0.4 

2 

0.41 

1.1 

2.75 

0.5 


Date of 

payment 

Oct 31 
Dec 5 
Oct 31 
Nov 8 
Oct 27 
Jan 3 
Nov 4 


Total 
far 

dividend year 


Total 

last 

year 


1.5 

036 

1.5 

0.7 


05 

3 

1.1 

5JS 

2.1 


Otvtdands shown 

increased capital. 


netoiMpt where otherwise stated. fOi 
stock. VForeion income payment 



FINANCIAL TIMES WEEKEND SEPTEMBER i 7/SEPTEMBER 18 1994 


'nt 


11 


COMPANY NEWS: UK 



;,rs ll|| C;. 
iki- ill 4" 


Australian propert y portfolio could be worth up to A$500m 

Hammerson sale attracts 


By Simon Davies 

MEPC. the UK’s second largest 
property company, has joined a 
large number of property 
investors negotiating the pur- 
chase of Hammerson's Austra- 
lian property portfolio. The 
portfolio was valued at £i75An 
in December, but could fetch 
as much as A3500m <E238m). 

Under the guidance of Mr 
Ron Spinney, who took over as 
chief executive 25 months ago, 
Hammerson has beat looking 
to realign its portfolio, concen- 
trating on the UK and conti- 
nental Europe. 

It has received approaches 
from up to seven investment 
groups, and has indicated 
it plans to sell its entire portfo- 


lio, assuming sufficiently 
attractive prices. 

The main asset in the portfo- 
lio is the 1.05m sq ft Warringah 
Mall shopping centre, the sec- 
ond largest in the country, 
which is situated on Sydney's 
north shore. The centre is fully 
let, and Hammerson has plan- 
ning permission for an exten- 
sion. 

MEPC Australia hac con- 
finned that it is interested in 
the portfolio, as has AMP 
Investment, the investment 
arm of the Australian insur- 
ance group. 

MEPC recently raised ASlbn 
in debt to' fund Australian 
acquisitions. Other interested 
parties are understood to 
include Lend Lease, Bankers 


Trust and Schraders. 

Hammerson has made it 
clear that it is In no hurry to 
dispose of these assets, which 
■were marked down by dose to 
30 per cent in the previous two 
years. 

However, Australian prop- 
erty values have surged this 
year and analysts estimate 
tha t by the year end the Ham- 
merson portfolio could have 
appreciated in value by up to 
10 per cent, with stronger 
growth to come in 1985. 

The bulk of the portfolio was 
acquired during the early 
1970's, although the Warringah 
Mall development was started 
in 1963. 

Investors’ attention has. been 
focused on the retail develop- 


MEPC 

meat At the year end Commu- 
nications House and 500 Col- 
lins Street, both Melbourne 
office properties, had occu- 
pancy rates of only 14.7 per 
cent and 6&5 per cent respec- 
tively. The portfolio had a 1993 
rental rncnmp of £16-3m. 

Hammerson has gearing of 
about 60 per cent and is expec- 
ted to have year-end net debt 
of about £750m. The sale could 
cut its debt by dose to one- 
third and save the group about 
tim a year in administration 
costs. 

Analysts said Hammerson 

would have to find attractive 
pricing to justify the Austra- 
lian sale, as the portfolio cur- 
rently offers a yield of about 9 
per cent 


US advance helps Keller to £3.01m 


By Richard Wolffs 

Keller, the international ground 
engineering company, reported a 40 per 
cent rise in pre-tax profits for the six 
months to June 30 after strong raicc in 
North America. 

Profits rose from £2. 15m to £3.0lm in its 
first results since flotation in April, when 
shares were priced at X30p giving a 
capitalisation of £72 Am. Yesterday the 
shares dosed up 3p at L29p. 

Turnover was £69.1m (£69-5m), rnfthiHfrig 
£10.5m from acquisitions, and operating 
profit rose 28 per cent to £3.6£n (£Z83m) 
after a £400,000 contribution from Case 


Inte rnational, the CMcago-based founda- 
tion engineer acquired in January. 

Mr Michael West, chief executive, said: 
“Our order books at the half-year were 
well ahead at the same tinw» last year, and 
that stronger coder book was still in place 
at the end of August" 

In North America sal ps increased from 
gi RSm to hriped by the Case pur- 
chase, for profits of £1.33m, compared with 
£789,000. 

In Germany trading volumes remained 
high although the group, a former engi- 
neering offshoot of GEN, warned of tight- 
ening margins in western Germany where 
market conditions were increasingly com- 


petitive. Continental Europe contributed 
profits of £1. 75m (£L79m) an turnover of 
£47 .2m (£4&5m). 

UK turnover was £l&9m (£12. 7m) and 
profits more than trebled to £345,000 
(£101,000), reflecting improved trading con- 
ditions and the start of infr astructure pro- 
jects on the Jubilee under gro und Uni* and 
Heathrow Airport rail Hnh. 

Group net interest costs fell to £631.000 
(£689,000). Net borrowings at the period 
end were £4.4m for gearing which would 
reduced to 14 per cent. 

An interim foreign income dividend of 
0.5p is being paid from eaming s per share 
up at 4J5p (2.4p). 


Advance of 18% comes as 
no surprise to James Crean 


Fired Earth 
back in black 
at £60,000 

Despite virtual stagnation in 
the underlying market for 
ceramic tiles. Fired Earth 
reported pre-tax profits of 
£60,000 for the six months to 
June 30, compared with a loss 
Of £94,000. 

Turnover was up slightly 
from £226m to £2 ,52m. 

Earnings per share were 
0.78p (l-25p losses). 

Mr Nicholas Kneale, the 
chairman, said that lower 
costs aud the “gathering 
momentum" of sales of new 
product lines in natural floor 
coverings had helped the com- 
pany move back into the.i 
black. I 


| By Poter Pearse 

James Crean, the Dublin-based 
industrial holding company 
which h»d a K82m rights issue 
in April, lifted pre-tax profits 
18 per cent to I£9.05m (£&91m) 
in the fiist half of 1994. 

Mr Brian Malloy, chief oper- 
ating officer, said the results 
were in line with expectations. 

However, in the food and 
beverages division, which oper- 
ates mostly in the US but 
includes the sole distributor of 
Mare confectionery in Ireland, 
there were flat operating prof- 
its of Z£&Q on turnover up 19 
per cent at I£78.1m (I£65.lm). 


Mr MoDoy said two-thirds of 
tlie sales growth derived from 
two product Launches in the 
US frozen foods market, involv- 
ing the one-off payment of 
“slotting costs” to supermar- 
kets to make shelf space. 

Inishtech, the paper and 
packaging company of which 
Crean holds 71 per cent, also 
had fiat profits - at I£4m on 
turnover of I£29.8m (I£27m). 
This, Mr Molloy said, was due 
to softness in the label busi- 
ness and the loss of a customer 
which accounted for 10 per 
cent of sales. 

Electrical wholesaling lifted 
profits to in.lm (K800.000) an 


turnover of I£23.1m (I£l9.7m) 
as UK markets emerged from 
recession. Office products 
made l£l_2m (I£BOO,OOfl) on 
sales of IfilOBm (KlO.lm). 

Crean is hoping to buy the 
balance of Inishtech, probably 
in a share swap. Beyond that, 
the rights issue, which reduced 
borrowings to lenmnt for gear- 
ing of 15 per cent, should fund 
acquisitions across the group. 

Group turnover totalled 
I£128^m (I£120.9m, including 
l£12.9m from discontinued 
operations). Earnings per share 
rose 11 per cent to l&5p (122p) 
and the interim dividend is 
lifted 5 per cent to 5-925p. 


Montague 
told of loan 
plans says 
Royal Bank 

By Simon Davies 

The Royal Bank of Scotland 
claims it held lengthy discus- 
sions over its £2 .3m loan to Mr 
Robert Montague, Tiphook’s 
founder and chief executive, 
and gave him one week’s 
notice before issuing its bank- 
ruptcy petition. 

The bankruptcy proceedings 
were revealed to Mr Montague 
by a shareholder’s representa- 
tive at Thursday’s annual 
meeting, where he had been 
attacked for his excessive 
remuneration. 

Mr Montague appeared 
shaken by the news. Be is ada- 
mant that be is not to finan- 
cial difficulties, and had no 
forewarning of the bank's 
move. 

He has retained the support 
of Tfphook's own bankers and 
Mr Ian Clubb, its newly-ap- 
pointed chairman. Both con- 
firmed their commitment 
to the group was unaffected by 
Mr Montague’s personal finan- 
cial position. 

However, if he were to be 
declared bankrupt, he would 
have to step down from the 
board which has declared that 
he is key to its survivaL 
The loan Is understood to be 
iiwi«ni to Mr Montague’s farm- 
ing businesses in Oxfordshire, 
ft appears that ehangaw in the 
terms of the loan had been 
under negotiation for some 
time. 

Mr Montague has sold his 
Highland cattle breeding activ- 
ities due to high costs. But 
with homes in Oxfordshire and 
Knighisbrldge, London a 
notoriously- high salary, he 
was always considered a man 
of substantial means. 

The petition was annnnww! 
by Mr Paul Snook, an accoun- 
tant with Buchler Phillips, 
who said he was acting as 
proxy for Lehman Brothers, 
and had learnt of the moves 
through standard enquiries. 

It appears that Mr Snook 
also held a proxy an behalf of 
Ms Carole Ritchie, as a repre- 
sentative of Pickering Kenyon 
solicitors, who are retained 
legal advisers to the plaintiffs 
in the US class action against 
Tiphook. 

Mr Montague has six weeks , 
to resolve his differences. 


Tropical storm disrupts 
Geest’s banana supplies 



AaNey fahwood 

David S agden: seeking permission to buy from other sources 


By David Btackwefl 

Banana supplies to Geest, 
whose shares fell sharply early 
in the year following disease 
on its Costa Rican plantations, 
have been hit by a tropical 
storm in the Windward 
Islands. 

Shares in the group fell 30p 
to 2Up, almost half the year's 
high of 375p. 

Tropical Storm Debbie hit 
the islands a week ago, causing 
extensive flooding around St 
Lucia and damage to roads and 
bridges. Geest, which is under 
contract to ship all the islands’ 
bananas, estimates that output 
will be 40 per cent down. 

It expects to load only 2,400 
tonnes a week, compared with 
a normal load of -1,000 tonnes. 
The islands, which usually pro- 
vide more than half the 
group’s total banana volume, 
are not expected to return to 
full production until the end of 
next year. 

The EC's Banana Manage- 
ment Committee, which meets 
next Wednesday, will consider 
how the disaster should be 
treated under the banana 
import regime. 

Mr David Sugden, Geest's 
chief executive, said the group 


was lobbying the European 
Commission to allow it to buy 
bananas from other sources to 
make up the shortfall, and 
import them into the UK at the 
same tariff. 

He attacked the political 
uncertainty still surrounding 
the regime, as it is unclear 
whether the co mmis sion has 
the power to determine the tar- 
iff on alternative supplies. "It 
is a nonsense that, a year into 


the regime, we are sitting here 
in this position because of an 
incident that was eminently 
foreseeable." 

He is expecting some support 
from the French as the banana 
industry in Martinique also 
suffered from the storm. 

Geest will announce its 
interim results next Thursday. 
The City is expecting about 
£12m, against £3.5m, following 
improved banana prices. 


Market placing puts 
Ryland at £22.72m 


Hornby cuts 
losses slightly 
to £0.73m 

Hornby Group, the 
USM-quoted maker of toys and 
model products, reduced pre- 
tax losses slightly from 
£791,000 to £733,000 in the first 
half of 1994. 

Turnover rose from £8.L2m 
to £8.54m with demand for 
both Scalextric and Hornby 
Railways ahead. 

Mr Malcolm Thomas, the 
chairman, said there were 
signs of a recovery in con- 
sumer spending, albeit slow, 
but the all-important Christ- 
mas trading period was diffi- 
cult to predict 

The Clever Cook toy oven 
was proving popular and the 
Gladiator range, based on 
the television programme, 
continued to sell well, he 
said. 

Losses per share were 5.4p 
(53p). 


By Caroline Southey 

Shares in Ryland Group, the 
family-owned vehicle distribu- 
tor coming to the market 
through a placing, were priced 
at 80p yesterday, valuing the 
company as £22. 72m. 

Following the placing of 
1034m shares, which will raise 
a net £7.48m, there will be 
28.4m shares in issue. 

The Midlands-based group 
has 30 franchised operations 
based primarily in the West 
Midlands, the North West and 
northern Ir eland . It has distri- 
bution agreements with. BMW, 
Mercedes, Nissan, Vauxhall, 
Toyota, Honda and Renault. 

Mr Peter Whale, chairman 
and chief executive, said he 
believed the underlying 
demand for new and used cars 
was improving and that strong 
regional trends were emerging. 


Ryland would be looking for 
acquisitions to increase its 
franchise spread but re main 
geographically focused. 

“If we remain geographically 
tight we can achieve some syn- 
ergies." he said 

After the placing the direc- 
tors and their f amili es will 
hold 39.5 per cent of the 
enlarged share capital. 

Ryland was established in 
1951 by Mr Whale’s grandfa- 
ther, Mr Harry Whale, who 
started the business by selling 
trucks in Bi rmingham. 

Ryland reported pre-tax prof- 
its of £2.04m (£773.000) in the 
year to April 30 on turnover 
ahead at £189.6m (£156.6m). 
Unit sales for the year stood at 
7.6m against 3.73m. 

The shares are expected to 
begin trading next Thursday. 
The placing has been spon- 
sored by Albert E. Sharp & Co. 


INTERNATIONAL COMPANIES AND FINANCE 


idi'i 




ITT looks to expand through asset sales 


By Richard Tomkins 
in New York 

ITT, the US financial, leisure 
and manufacturing conglomer- 
ate, yesterday confirmed it was 
seeking buyers for its ITT 
Financial subsidiary, a middle- 
ranking US finance company, 
in a sale that could fetch 
between 83bn and Wbn. 

ITT said the proceeds would 
be used for general corporate 
purposes, but it is understood 
the group wants to use at least 
some of the funds to pay for a 
big expansion of its leisure and 


entertainment business. This 
could even include a bid for 
General Electric's NBC televi- 
sion network. Goldman Sachs 
was yesterday appointed advis- 
ers to the sale. 

Mr Rand Araskog. c h ai rma n 
and chief executive, said yes- 
terday ITT was selling ITT 
Fmandal because it wanted a 
greater balance between its 
financial service, manufactur- 
ing and hotel and entertain- 
ment businesses. 

At present, the financial side 
dominates the other two divi- 
sions. Apart from ITT Finan- 


cial, it includes the Hartford 
insurance business, one of the 
biggest operations of its type in 
the US. Hartford is not bring 
sold. 

Although riTs existing lei- 
sure and entertainment inter- 
ests include the Sheraton hotel 
group, they rank behind the 
manufacturing side in terms of 
turnover and profit The manu- 
facturing arm includes a big 
auto parts unit making anti- 
lock braking systems. 

ITT Financial offers a range 
of services to businesses and 
individuals, including commer- 


cial equipment and real estate 
loans, small business loans, 
home mortgages, consumer 
loans, and related insurance 
products. Last year it made net 
profits of $2Q5m on revenues of 
$L44bn. 

Possible buyers would 
foclnrie other finance compa- 
nies in similar business areas. 
One candidate is GE Capital, 
part of General Electric. 

ITTs reported interest in 
acquiring the NBC television 
network from General Electric 
raises the possibility of a part 
exchange. However, General 


Electric’s favoured buyer for 
NBC Is believed to be Time 
Warner, the US media and 
entertainment group. ITT has 
been sidelined pending an out- 
come of talks between the 
other two parties. 

ITTs interest in NBC follows 
its acquisition last month of 
Madison Square Garden sports 
and m tertatam ent, complex for 
Sl.lbn, in partnership with 
Cablevision Systems, a US 
cable television company. ITT 
is also in the process of taking 
over Ctga, the Italian luxury 
hotels group. 


Swiss insurer 
on course for 
‘good’ year 

By km Rodger 
In Zurich 


ich Insurance, one of the 
cid's largest insurers, said 
gross premium income rose 
per cent in the first halt to 
■14JJbn (Sll.lbn). AD three 
iiness areas - life, non-life 
I reinsurance - grew at 
ghly the same rate, 
osses resulting from natu- 
catastrophes were consider- 
y higher than in the compa- 
le period in 1993. The group 
d insurance and assumed 
nsurance claims arising 
n the California earthquake 
lier this year would reach 
ween $S5m mid S90m. 
he life insurance division 
de a greater contribution to 
wth than in recent years, 
he group published no 
fit figure for the first halt 
said it expected a “good 
rail result" in the foil year, 
aided there were no 
mordinary developments on 
claims, foreign exchange or 
indal fronts. . 

he strength of the Swiss 
nc restrained premium 
wth rate in the first half. 


Preussag acquisition 


the diversified 
group, is buying 
Ugesellschaft its 
at share in Lehnk- 
an Transport for 
50m l$62.5m), Mr 
>nzel. manage ment 
■man said, Reuter 
m Hanover. The 
ilculatod according 
et value. 


Korean groups set to list on NYSE 


By John Burton In Seoul 

Pahang Iron and Steel (Posco) 
and Korea Electric Power 
(Kepco) are expected next 
month to be listed cm the New 
York Stock Exchange, the min- 
istry of finance said yesterday. 
It is the first move by South 
Korean companies to seek list- 
ings on international markets. 

The two state-controlled 
companies, which have tenta- 
tive approval from the US 
Securities and Exchange Com- 
mission and the NYSE for the 
listings, will each issue $300m 
in depositary receipts. 


Posco is the world's second 
largest steelmaker, with net 
profits of Won295bn (3368.7m) 
in 1993. Kepco, meanwhile, is 
Korea’s electricity monopoly 
and the largest capitalised 
company on the Seoul bourse, 
with net profits of Won419bn 
last year. 

The Korean government 
recently announced It would 
allow Korean companies to list 
their shares on the New York, 
London and Tokyo bourses. It 
is also considering allowing 
foreign companies to be listed 
on the Seoul exchange from 
next year, as part of its finan- 


cial liberalisation programme. 

At least nine other Korean 
companies are considering list- 
ing their shares on foreign 
exchanges from next year. 
They include Samsung Elec- 
tronics and its electronics rival 
Goldstar, Hyundai Motor, Dae- 
woo Corporation, Samsung 
Heavy Industry, the Lucky and 
Yukang petrochemical compa- 
nies, S&angyong Oil Refining 
and Ssangyang Cement 

The ministry of finance had 
initially wanted to delay the 
listing of Posco and Kepco on 
the New York exchange at 
least until the end of this year. 


for fear that a record amount 
of overseas issues of equity- 
linked bonds by Korean compa- 
nies would increase inflation- 
ary pressure, as they brought 
the funds into the country. 

The ministry recently ban- 
ned overseas bond issues for 
the fourth quarter after this 
year's ceiling of $i.25bn was 
reached. However, it has now 
raised the ceiling to $1.28hn to 
accommodate the Posco listing. 
It has also allowed Kepco to 
replace a planned $30Qm bond 
issue with the depository 
receipts, so it could acquire the 
New York listing. 


Hongkong Land disappoints 
market with 9,6% advance 


HK hotels group 
shows strong rise 

By Louise Lucas 

Mandarin Oriental International, the hotel 
group controlled by Jardine Matheson, 
yesterday ann ounced a 16 par cent rise in 
first-half 1994 net earnings, to US$22.6m, 
from $19. 5m the previous year. Results 
were boosted by enhanced contributions 
from the group's two Hong Kong hotels, 
Mandarin Oriental and The Excelsior. 

The Hong Kong hotel sector is enjoying 
a return to better times as visitor arrivals 
to the colony increase and hotels are pul- 
led down to make way for office blocks, 
dampening supply. However, increasing 
competition in other markets - such as 
Manila and Jakarta - eroded revenues. 

In May, Mandarin Oriental took over 
management of The Ritz hotel in London, 
the group's first presence in Europe. Next 
year it opens its first hotel in Mexico (Sty. 
In 1998 a deluxe hotel in Kuala Lumpur is 
due to open, in which the group is to take 
a 25 per cent interest 

Fuming* per share rose 16 per cent to 
5.82 US cents from 2.87 US cents. An 
interim of 1.55 US cents a share is recom- 
mended against last year's L41 US cents. 


By Louise Lucas in Hong Kong 

Hongkong Land, the Jardine Matheson 
group’s property investment arm, 
yesterday reported a 9.6 per cent rise in 
after-tax profits, to US$l&L9m for the first 
six months of the year. The figure com- 
pares with US$165 3m in the first half of 
1993. 

Following the lead set by Dairy Farm, 
Jardtae's retail business, both Hongkong 
Land and sister company Mandarin Orien- 
tal, the hotel group, accompanied their 
results with the date of their exit from the 
Hong Kong Stock Exchange. 

Both will de-list on March 31. three 
months after Jardine Matheson and Jar- 
dine Strategic. AH five departing Jardine 
companies are constituent stocks on the 
Hang Seng Index. 

Hongkong Land’s results were on the 
low side of market expectations. Earnings 
per share rose 9B per cent to 635 US cents 
from 644 US cents, while the dividend 
improved 21 per cent to 350 VS cents from 
3,15 US cents. 

Profits were boosted by a significant 


jump in office rents. Hongkong Land is the 
colony's biggest commercial landlord, and 
its portfolio is virtually fully 
let 

However, Hong Kong analysts were dis- 
appointed by the modest contribution 
from Trafalgar House, in which the group 
holds a 25.6 per cent stake. Crosby Securi- 
ties put the Trafalgar House contribution 
at US$7.6m, sharply below its forecasts. 

The group continues to seek additional 
property investment opportunities in 
China and elsewhere In Asia. Its 63,000 sq 
ft office block in Hanoi, Vietnam, is sched- 
uled for completion late next year. 

Hongkong Land has diversified into the 
infrastructure sector by taking the biggest 
single stake in the Tsing Yi consortium to 
build Container Terminal 9 - a project 
now fraught with political overtimes as 
Beijing; upon whose approval the project 
is dependent, seeks to eject Jardine 
Matheson. 

Yesterday’s results statement noted that 
“commencement of the project remains 
dependent upon agreement between the 
British and Chinese governments". 


US media 
group forms 
Indian TV 
joint venture 

By Shiraz SJdhva 
in New DsN 

Time Warner, the US media 
and entertainment group, is 
forming a joint venture with 
RPG Enterprises, one of 
India’s largest industrial 
houses, to set up a pan-Asian 
satellite-based six-channel 
television network in India. 

The entertainment-based 
network will cost 81bu to 
establish, and the joint ven- 
ture win have an equity base 
of almost *50m. The channels 
wifl seek to cater to different 
Asian language groups. 

The companies are awaiting 
the approval of the govern- 
ment’s Foreign Investment 
Promotion Board (FIPB) 
before divulging details on the 
project 

A cabinet committee on 
broadcasting, headed by Mr 
Shankarrao Chavan, the home 
minister, has recommended 
that the Indian private sector 
be allowed to set up extra- 
terrestrial television stations. 
However, it does not favonr 
the entry of foreign television 
companies into India. 

Analysts say the govern- 
ment is unlikely to approve 
the Time Wamer-RFG project, 
the first foreign-equity pro- 
posal in the Indian electronic 
media, until ft formulates pol- 
icy on the entry of foreign 
media groups into India. 

According to some reports, 
Time Warner is also keen to 
extend Its entertainment 
empire to India, by setting up 
video parlours, movie halls, 
fast food outlets and shopping 
complexes. 

The new project, if it is 
cleared, will challenge the 
near-monopoly of Mr Rupert 
Murdoch's Star TV in the 
region. India accounts for 
nearly 40 per cent of Star’s 
1.21m viewers in Asia, and a 
host of Indian and interna- 
tional companies are keen to 
enter the growing market 

Star, which has a 49.9 per 
cent stake in Zee, the popular 
Hindi language channel, and 
has recently bought a 49 per 
cent stake In United Televi- 
rion, a Bombay-based software 
company, is launching India's 
first pay-TV channel on Octo- 
ber L to screen international 
films. 


Montedison back 
to the black with 


L289bn pre-tax 


By Andrew HH in Milan 

Montedison, the Italian 
industrial company recovering 
from near-collapse last year, 
has returned to pre-tax profits 
for the first time since 1991. 

It unexpectedly released its 
half-year results yesterday, 
showing profits before tax and 
minority interests of L289bn 
($184. 6m) for the six months to 
June, compared with a loss of 
L369bn in the first half of 1993. 
About 30 per cent of Montedi- 
son is controlled by Ferruzzi 
Finanzlaria (Ferfin). 

Unusually for Italian compa- 
nies, which no rmally publish 
results after the market closes, 
the announcement was made 
at lunchtime. The share price 
immediately rose by more than 
5 per cent to a high of L1.452, 
before falling back to close at 
LL390. up LU. 

The results demonstrate the 
benefits of the drastic restruct- 
uring and cost-catting carried 
out by the current manage- 
ment Since last g limmer - 

So far, Montedison has 
raised some Ll.lOObn by hiving 
off non-strategic businesses to 
concentrate on the principal 
activities of agro-industry, 
energy and ohamirwie . 

In the first six months of the 
year, with the help of a capital 
increase, the group's debt fell 


L4.416bn to Lll,425bn, and 
financial charges in the first 
half of 1994 were L264bn lower 
than in the equivalent period. 

Profits In the first six 
months of last year were also 
undermined by the need to 
write off extraordinary losses 
of L353bn, following revela- 
tions at a dramatic shareholder 
meeting in June 1993 that 
group losses were 35 per cent 
higher than originally 
announced. 

The current board, headed 
by Mr Guido Rossl took over 
immediately after that meet- 
ing, spawning a series of law- 
suits and counter-suits in its 
attempts to recover damages 
from its predecessors, the Fer- 
ruzzi family , an d the group's 
former auditor Price Water- 
house. 

The group's gross operating 
profit rose to LL385bn in the 
first half of this year, from 
Ll,296bn in the same period 
last year. The figure for last 
year was restated because of 
changes in accounting rules. 
Net operating profits grew by 
10 per cent to L812bn from 
L739bn. Turnover was almost 
unchanged at Li0£48bn. 

Montedison's parent com- 
pany cut its losses to L349bn 
before tax in the first half, 
against a loss of Ll,085bn last 
time. 


Sonae shrugs off falling 
prices and demand 


By Peter Wise in Lisbon 

Sonae. Portugal's largest 
distribution and industrial con- 
glomerate, reported a 109.7 per 
cent increase in net consoli- 
dated profits, to Es6.5bn 
($4L2m) for the first halt in 
spite of falling private con- 
sumption and higher raw 
material costs. 

Sonae’ s Continente hyper- 
market and Modelo supermar- 
ket chains, which account for 
abont 80 per cent of group 
turnover, registered a 283 per 
cent rise in retail sales, to 
EsSBbn, 

However, a high level of 
investment and internal reor- 


ganisation costs weakened 
results. Continepte’s net profit 
fell 4.2 per cent to Es2.3bn. 
Modelo’s net profit slid 79.2 per 
cent to Esl.lbn, largely due to 
the sale of a smaller supermar- 
ket chain 

Sonae’s industrial arm, 
focused on wood-based prod- 
ucts, reduced its net loss to 
EslOOm from EsL7bn for the 
first half of last year. 

In spite of strong price and 
volume performance, margins 
were hit by rising raw material 
costs. 

Extraordinary profits for the 
group rose to Es4.7bn from 
Es4.2bn for the same period 
last year. 



N 



12 


FINANCIAL TIMES WEEKEND SEPTEMBER 1 7/SEPTEMBER IS 1994 


COMMODITIES AND BOND PRICES 


WEEK IN THE MARKETS 

Aluminium 
returns to 
1991 level 

By Deborah Hargreaves 
and Kenneth Gooding 

Aluminium started the week 
determined to burst through 
$1,600 a tonne on the London 
Metal Exchange, a price not 
seen since January 1991 and a 
level at which nearly every 
smelter in the world is profit- 
able. 

It took time, but yesterday, 
aluminium for delivery in 
three months broke through 
resistance and closed last night 
at S1.60S.50 a tonne, up $32 on 
the day and S2L75 from Fri- 
day's close last week. 

Sentiment yesterday was 
helped by another substantial 
fall in LME warehouse stocks. 
Since stocks peaked at a record 
2.65m tonnes in June this year, 
they have fallen by 270.000 
tonnes or nearly 10 per cent. 

Earlier in the week, the mar- 
ket paused for breath after an 
unexpected rise in producer 
stocks was reported by the 
International Primary Alumin- 
ium Institute. 

Traders are now looking for 
aluminium to reach $1,650 a 
tonne. However, there were 
words of caution from some 
observers. Mr Angus Mac- 
Millan, research manag er at 
Billiton-Enthoven Metals, said 
the price was getting ahead of 
itself. “There are still huge 
stocks over handing the market 
- about 14 weeks of consump- 
tion - and eventually the mar- 
ket will realise this and settle 
down to sideways trading. 
Things are often overdone In 
the early stages of a recovery 
and the first -quarter rise In 
[aluminium! prices is not sus- 
tainable to the year-end." 

The output cuts made by alu- 
minium producers so far this 
year were “haying an Impact 
beyond their wildest dreams". 
As long as the producers stuck 
to their guns, there would be a 
supply deficit of about 400,000 
tonnes this year and one of 1 m 
tonnes in 1995, he said. Conse- 
quently, Mr MacMillan is fore- 

WEEKLY PRICE CHANGES 

Latest 

prices 


casting al uminium prices aver- 
aging 65 cents a lb this year 
($1,433 a tonne) and 75 cents 
($1,653) in 1995. 

Meanwhile, the coffee mar- 
ket this week was dogged by 
uncertainty about the Brazil- 
ian government's plans for 
auctioning off its stockpile. 
After a dramatic rise a week 
ago on news that the auction 
would be cancelled, traders 
believed the government could 
be close to changing its mind. 

Rainfall forecasts for the cof- 
fee-growing regions of Brazil 


un w/utmouss arocxs 

lAa oi Thursday's dosaj 
toms 


Ahaninun 

-16500 

to 2083,050 

Akantnkan relay 

n 

change 

°«l 46200 


-1250 

10 306826 

Lead 

■*200 

10 386375 

Ntahei 

*660 

to 142074 

Zinc 

-1350 

to t_235_350 

Hu 

*526 

to 32^05 


also affected prices. The frost- 
damaged trees have been suf- 
fering from a shortage of rain- 
fall, but need a heavy down- 
pour to do them any benefit 
Light rain which was forecast 
for mid-week could be worse 
than none at all as it could 
encourage the trees to produce 
flowers which would later die. 

The big drop In the market 
occurred on Wednesday when 
prices lost $153 a tonne - 
declining at one stage by more 
than $200 a tonne - on news 
that Brazilian coffee growers 
were trying to persuade the 
government to restart the auc- 
tions. The price of the Novem- 
ber futures contract at the Lon- 
don Commodity Exchange 
dropped from $3,993 a tonne to 
$3,840 a tonne. 

Bnt the confusion was 
cleared up again on Thursday 
when Brasilia announced that, 
for the time being, the auctions 
remain off. With 5m bags of 
coffee still to sell in its stock- 
pile, this could keep Interna- 
tional supplies tight. 

However, the market reac- 
tion was modest with prices 
rising only $37 a tonne in quiet 
trading. The market remained 
quiet yesterday, although 
prices gained ground in late 
trading as dealers expressed 
concern over weather condi- 
tions in Brazil at the weekend. 
The London market closed $53 
higher at $3,931 a tonne. 


Change Year 1994 — - 

on week ago tflgh Low 


Gold per boy oz. 

$390.60 

-\2 5 

3352.00 

$39650 

$389.50 

Stow per tray 02 

34650p 

-600 

2B615P 

384-Mp 

331 .SOp 

Aluminium 99.7*0 (enti) 

S1S85Jj 

+21.5 

S1119.5 

$158560 

S1 10750 

Copper Grade A (cash) 

32489.5 

+600 

SI 7565 

$2521.00 

$1731.50 

Lead (cash) 

$821.5 

*t2J> 

$3760 

56216 

$4260 

Nickel (cash) 

$8427.5 

+120.0 

$4293.5 

S6490 

$52160 

Zinc SHG (CHShl 

$1010.5 

+38.0 

$877.5 

$1614 

$9065 

Tin (cash) 

S5262.5 

-85.0 

$43460 

$5850.0 

$47360 

Cocoa Futreea Dec 

EB88 

-12-0 

E903 

£1124 

£859 

Coffee Futures Nov 

$3932 

-260 

SI 294 

$3955 

$1175 

Sugar (LDP Raw) 

S3164 

+9.70 

$2568 

$3164 

$252.9 

Barley Futures Nov 

Cl 04.30 

-645 

€102.00 

£105.50 

€92.65 

Wheat Futures Nov 

C706 05 

+0-65 

€104.80 

€117.50 

£97.90 

Cotton Outlook A Index 

75.90c 

-625 

55.50c 

87.10c 

62.45c 

Wool (64a Super) 

475p 

+9 


475p 

342p 

OU (Brent Blend) 

S1684X 

-6735 

$1614 

$18.81 

$1618 


Pw tome witera omenme ttoMd. p PencWkg. c Crts b. r Nov 


BASE METALS 


LONDON METAL EXCHANGE 

(Prices fram AmMgemteed Motel Tnrfn^ 

■ ALUMINIUM. 93.7 PURITY (8 par tome) 


Cash 3 rrrtha 

Ckree 1686-6 1608-9 

Previous 1662-3 1378-7 

hSgMow 1588/1565 1812/1685 

AM Official 1MS.8-6 1 689-9 £ 

Ktd) dose 1607-8 

Open IrtL 263,758 

Total dafy turnover 61305 

■ ALUMiMUM ALLOYS per tonne) 

Close 

1610-5 

1630-6 

Previous 

1686-90 

1505-605 

mgh/tow 

1600 

182071600 

AM OffidU 

1600-6 

1621-00 

Kerb dose 


1630-40 

Open tot. 

2.883 


Toted dotty turnover 

590 


■ LEAD (S per tonng) 


Close 

621-2 

634-6 

Previous 

619-21 

831-3 

HttgMow 

614 

B377K7 

am omcire 

613-4 

826-7 

Kerb dose 


633-30 

Open InL 

42J82 


Total daily turnover 

6.705 


■ NICKEL ($ per tome) 


Close 

6425-30 

6520-5 

Previous 

6350-60 

6450-60 

hfighriow 

6344 

666678400 

AM Official 

6344-5 

6436-6 

Kerb dose 


6535-6 

Open Int 

64,674 


Tend daSy turnover 

19.7B1 


■ TW (Z per tome) 



Close 

52608 

3335-40 

Previous 

5240-50 

5315-30 

Hlgtiriow 


5340/5260 

AM Official 

5200-10 

5278-80 

Kerb dose 


5335-40 

Open bit 

17.006 


Total dally turnover 

2.764 


■ ZINC, special high grade ($ per tonne) 

Close 

1010-1 

1032-3 

Previous 

932-3 

1014-40 

Hlgh/tow 


1036/1020 

AM Official 

997-6 

1019-90 

Here close 


1033-4 

Open mt 

97,469 


Toted dally turnover 

29003 


■ COPPBT. grade A (S per tonne) 


Close 

2489-90 

2507-8 

Previous 

2471-2 

2487-8 

FfigMow 

2489724680 

251372483 

AM Offidd 

2469-90 

24840-50 

Kerb dose 


2512-3 

Open bit. 

217J260 


Total dafy turnover 

41,714 



■ LME AM Official C/S rate: 1-5H72 
LME Closing P$ rate: 1-SB4B 


Spot! .5840 3 nri*10817 6 mU*1.57K 9mtRl07Z 
■ HIGH GRADE POPPER (COMEX) 



Ckree 

D>Y> 

dnngs 

Mtl> 

Inr 

Opm 

M 

W 

Sep 

12200 

+200 

12235 

11670 

4A70 

400 

Oct 

11855 

+235 

11650 

117.80 

1,719 

52 

Mb* 

117.70 

+260 

1KL35 

11650 

695 

IB 

Dec 

1I7Z5 

+2.46 

11730 

114.60 

39040 

6,746 

•tat 

116J9 

+2J0 11660 115.40 

557 

4 

Feb 

11613 

+2.15 

- 

- 

426 

- 

Total 





SJ83 

7A8Z 


PRECIOUS METALS 

■ LONDON BULLION MARKET 
(Prices suppflad by N M ftHtudifld) 


Gold (Troy oz.) 

$ price 

E equhr. 

Ckse 

35XX4Q-39Q.80 


Opening 

387.70-388.10 


Morning fix 

388.25 

248.184 

Afternoon fix 

390 IH 

247970 

Da/a H£h 

391.00-391.40 


Day’s Low 

387.60-388.00 


Previous dose 

388.00-399^0 


Loco Ldn Mean GoM Lending Rates (Va USS? 



.4 59 



ao a 



Stiver Rx 

p/tioy oz. US da equhr. 

Spot 

343.55 

536.50 

3 morths 

34825 

544.95 

6 months 

35140 

551.75 

1 year 

38705 

569.06 

Odd Coins 

$ price 

£ equhr. 

Krugerrand 

383-396 

252-255 

Maple Loaf 

401.40-40390 

- 

New Sovereign 

90-83 

58-61 


Precious Metals continued 

■ GOLD COMEX (100 Troy oe.; Srtroy oaj 



Sen 

Orft 



06" 



Pries 

ctenvi 


toa 

tt 

to L 

Sop 

3883 

+1.7 

. 

. 

- 

4 

OCt 

3603 

+13 

3613 

wan 

7706 

S91 

NO* 

3921 

+1J 

- 

- 

- 

- 

BSC 

3333 

+1J 

3063 

3923 09334 16,729 

FM 

38M 

+17 

301 

3963 13711 

282 


4003 

+13 

4003 

400.7 

6312 

43 

TDttl 





N/A 

M/A 

■ PLATINUM NYMEX (GO Ttay oz.; SAray ozj 

Oct 

4130 

+23 

4153 

4103 13374 

4348 

Jm 

4173 

+23 

4102 

4163 

8303 

1358 


4203 

+42 

4223 

422H 

2398 

2 

tel 

424J 

+22 

- 

- 

464 

51 

Od 

4273 

+22 


- 

280 

- 

Tata) 





25364 

8360 

■ PALLADIUM NYMEX (100 Tray ml; S/troy ol] 

S«P 

19035 

+135 

15030 

15030 

34 

. 

Dw 

181.40 

+136 

151.75 

14936 

5302 

SOS 

Bar 

152.15 

+155 1SZ25 

15050 

957 

28 

tea 

153.15 

+136 

- 

- 

1S2 

- 

Total 





6385 

537 

■ SLYER COMEX (100 Tray ozj Certs/tray at) 

top 

541 J 

+4.1 

6483 

5400 

385 

08 

Oct 

5433 

+43 

- 

- 

7 

1 

Ho* 

5433 

+43 

- 

- 

■- 

- 

DSC 

5478 

+43 

5573 

5443 82230 13,436 

tea 

5400 

+43 

re 

- 

59 

• 

War 

BES7 

♦43 

HKD 

5510 

0204 

339 

Total 




107306 13302 


ENERGY 





■ cRuoeon. 

NYMEX (42/100 US gatts. X/berreQ 


utrat 

ore's 


Open 



pries 

chasm 

Moh 

Lore tat 

tot 

act 

1636 

+016 

1039 

1670 46883 20777 

Hbv 

1730 

+015 

1735 

1635 87.450 26156 

Dec 

1720 

+8.11 

1724 

1737 59.107 

127*1 

Jan 

1735 

+0.10 

1737 

1727 30,561 

6127 

Fab 

17.40 

+834 

17.40 

1730 21373 

1JDQ 

Her 

17 AS 

+036 

17.49 

17AS 15210 

351 

TPM 




865M 

■ CRUDE OIL IPE Ct/barei) 




Latest 

Dai's 


Open 



Pries 

dougc 

m 

inr tat 

W 

Nov 

1534 

+018 

1531 

1570 28,198 

6719 

Deo 

1632 

+012 

1606 

1538 82373 26568 

ten 

16.14 

+8L11 

1615 

1600 26370 

3320 

Fib 

1820 

+014 

1631 

1606 12A47 

1.104 

Mr 

1621 

+8.10 

1021 

1021 7331 

150 

Apr 

1625 

+035 

1625 

1625 8329 

190 

low 




12SJ27 3<30< 

■ HEA1WG CM. NYMEX (42300 US grita; OUS gribj 


Ldest 

Dot* 


Opn 



pries 


Rtfl 

In tat 

Ml 

Oct 

4830 

+009 

47 JO 

4680 36241 

13715 

No* 

4636 

+017 

4640 

4730 24.720 


Dec 

49.40 

+0.16 

4670 

4029 46186 

3381 

tea 

5040 

+037 

5035 

5020 24.100 

6021 

M 

5095 

+002 

51 AO 

5030 16367 

1,666 

Mu 

5075 

+002 

5135 

5075 16130 

1713 

TPM 




171J82 42396 

■ GAS OB. K (Wane) 




toll 

Day's 


Opra 



Pries 

dungs 

HP 

In fat 

tot 

Oct 

14725 

- 

14650 

14730 1A44 

6351 

Nsv 

15050 

- 

15130 

15030 34J39 

2252 

OK 

153.00 

- 

15679 15279 16775 

1J04 

tea 

15600 

+025 15626 16450 10213 

7D5 

Fob 

15000 

+075 

15600 

15600 13.107 

260 

Mar 

155.75 

+650 15630 15530 4303 

078 

Tott 




101,740 12329 

■ NATURAL GAS NYHEX (10300 mi<6ki; SAlwflttt) 


Latest 

D ffiT» 


Opan 



pries 

ritaaga 


In tt 

M 

Oct 

1307 

-6024 

1335 

1305 25.447 13369 

HD* 

1380 

-6019 

1380 

1380 24721 

3310 

Bsc 

2370 

-0305 

2365 

2070 20318 

1364 

Jm 

2J10 

-6002 

2120 

2105 15394 

861 

Ft* 

2345 +8305 

2330 

2040 12339 

835 

Rtar 

1390 +0002 

2300 

1390 9345 

560 

Total 




199338 24379 

■ UMJEADED GASOLINE 



KTMEX (42300 US gte; C/US gdsj 




Uteri 

Daft 



Ota* 



Price 

Mage 


In 

tt 

tot 

Oct 

44.73 

+838 

4430 

4430 22645 12308 

Nw 

46JB 

+834 

4610 

4430 18300 

6122 

Dae 

5230 

+035 

am 

5220 10344 

1194 

tea 

suo 

+050 

5235 

5200 

8,187 

1J82 

M 

5260 

+843 

9230 

5240 

1777 

389 

Mar 

5330 

+046 

5330 

5330 

811 

338 

IMP 





tojma 24,142 


GRAINS AND OIL SEEDS 


■ WHEAT LCE (E par tome) 



Sa& 

flaf* 



Open 



Pri» 

rings 

Mgb 

In 

tt 

Vri 


10675 

+130 

10175 10150 

170 

78 

Ho* 

10608 

+035 

10606 10730 

1506 

402 

tea 

11610 

+030 

11130 

10635 

1318 

179 

Mar 

11210 

+620 

11230 

11130 

1.118 

190 


11430 

-035 

11430 

11430 

1,227 

124 

JM 

11635 

+0.10 11630 11630 

267 

3 

Toted 





7,188 

SR 

■ WHEAT CBT (53O0tMJ min; carriaAOb bushel) 

3»P 

377/D 


377/D 

36OT 

416 

234 

Ok 

38914 

+OT 

390/0 

38174 47,187 17300 

Rtar 

39774 

+6M 

338/0 

389/2 16382 

1795 

May 

38274 

+6G 

S83M 

37674 

2313 

990 

JM 

354/2 

+4/6 

355/0 

34874 

15M 

1381 

Dm 

WOT 

+1/0 

WOT 

35174 

63 

20 

ratal 





72,219 21901 

■ MAIZE CBT {5,000 bu min; centa/Sfflb bushaO 

Sap 

216/6 

■ON 

216/0 

21 478 

3381 

4367 

Dae 

217/8 

-074 

218/8 

21 Sfl 131288 51012 

te 

22774 

-on 

22074 

Z2S74 

38344 

9374 


234/E 

- 

23570 

232/6 14319 

13M 

JM 

239/2 

- 

230/4 

237/D 

14384 

1784 


242/0 

+8/2 

242/2 

241/0 

963 

57 

Total 




: 

90363 

71338 

■ BARLEY LCE (E par tonna) 



Sap 

10935 

*020 

_ 

. 

31 

. 

Hoc 

10430 

re 

10UQ 

10130 

479 

3 

Jaa 

10840 

-020 

- 

- 

388 

- 

Mar 

10665 

- 

re 

- 

89 

- 

May 

11030 

- 

- 

- 

21 

- 

TOM 





1308 

3 


■ SOYABEANS CBT ftOOO&i Mg rantagBl MM) 


Sag 

559/2 

-4/6 

565/4 

5&7A 

2384 

1311 

Has 

553/Z 

-4/2 

550/4 

549/4 77357 39357 

Jm 

58274 

-4/2 

568/4 

65OT 

17,128 

4363 

■Mn- 

57281 

-3/B 

577/4 

589/0 

8,442 

1270 

Bar 

5800 

-3(6 

584/4 

577/0 

1100 

587 

JM 

BOOT 

-2/8 

saw 

682/4 

9,404 

1301 

total 




121128 50/»7 

■ SOYABEAN OO. CBT (6000003: oentaflb) 

top 

2538 

448 

2145 

2535 

2395 

2302 

Oct 

2647 

-044 

2630 

2606 18396 

8318 

Dss 

2433 

-041 

2530 

2450 39,734 14398 

Jan 

2431 

438 

2530 

3435 

6483 

1,175 

Mar 

24.41 

4.19 

2435 

2412 

7376 

1306 

■tar 

24.10 

JL » 

2435 

2330 

4,228 

642 

Toad 





88314 

67*1 

■ SOYABEAN MEAL CBT (100 Iona; S/Ion) 


top 

1068 

■07 

1667 

1666 

2300 

1265 

Oat 

1614 

4.1 

1663 

1653 14,173 

6439 

Dae 

1653 

+0.1 

1683 

1664 41,743 123« 

Jm 

157.1 

+0.1 

168.1 

1869 

9338 

1323 

Iter 

1766 

+02 

1713 

1703 

9303 

1367 

*toT 

1717 

+06 

1714 

1723 

c im 

773 

Tetri 





06482 29384 

Bi POTATOES LCE (£/tonno) 




tow 

1503 


. 

. 

. 

. 

Mar 

-1053 

- 

- 

- 

- 

- 

*pr 

m* 

-13 

2243 

2213 

1.422 

75 

Itay 

2403 

- 

- 

- 

- 

- 

Jte 

1073 

- 

- 

- 

- 

- 

Total 





1(422 

75 

■ FREIGHT (BIFFEX) LCE (|1Q/IndaK pdut) 


top 

1568 

+3 

1575 

1580 

354 

83 

Oct 

1602 

+16 

1603 

1500 

810 

73 

Hw 

1583 

+7 

1306 

1390 

122 

33 

Jm 

1566 

+13 

1570 

1560 

567 

48 

Apr 

1570 

+2 

1575 

1594 

374 

17 

tt 

1443 

+8 

1435 

1435 

60 

30 

Total 

Clara 

Pis* 



1353 

262 

BH 

1537 

1827 






Wad 

Prices tar finer Marinos rue even me rapWy 
In the eerier AustraSar sate days this week, 
wtth tanadar typee dec rtatog If more gradualy. 
The Eastern states market Indcator ended el 
829c/kg. compared with 7SOc/kg a weak 
before. The Western states Indicator rose 
strongly at the (tat Fra ma nde sals but Bw 
nratari woe a He erotic at the doea. 6 cents 
down on the day I a» 25 cants higher than at 
the and of last weak. With prices at least 
double those a year ago. and lor Oner Marinos 
much mare than that, ther Is iHhMi among 
wad tsidfle mandae&irea and partiedarty UK 
home market rotators, but a rttio market dora 
favoftm a mJa cate but steady support even ■ 
during the unhappier tone*. 

Hw apices report was not avaBaMe for this 
addon. 


SOFTS 


■ COCOA LCE {E/tonne} 



SaB 

Day* ■ 



<*e» 



price 1 

Stonge 

n* 

in 

tat 

IM 

top 

955 

-9 

883 

983 

45 

1 

DM 

988 

■8 

ion 

962 

27 A® 

1381 

Mar 

1019 

■$ 

1030 

1014 

33380 

1,653 

May 

1011 

-6 

1041 

102S 

11.703 

1308 

tt 

1042 

-7 

1043 

1042 

5565 

25 

top 

1053 

■« 

1054 

1084 

1211 

1 

total 





89,443 

4380 


■ COCOA CSCE (10 tonnes; £/tonnas) 


Die 

1338 

■12 

1354 

1338 

7 

13 

Mar 

1388 

-11 

1401 

1384 41829 1210 

Maj 

1414 

-a 

1430 

1414 

13/915 

411 

tt 

1442 

-8 

1456 

1484 

1995 

17 

top 

1462 

-8 

1475 

1475 

1088 

33 

Dae 

1488 

-8 

- 

• 

1,267 

14 

total 





71115 3JM2 


■ COCOA (ICCO) (SOffa/torowj 


Sap. 11 Pries FMc. day 

Daily 1015.18 1007 JO 


■ OOtTgE LCE (S/tonne) 


top 

4042 

+52 

4045 

3975 

1406 

35 

HW 

3932 

+86 

3940 

3855 

12491 

\AM 

Jm 

3877 

+50 

3090 

3812 14.112 

889 

■V 

3806 

+59 

3810 

3735 

6902 

402 


3755 

+57 

3750 

3700 

1.666 

193 

tt 

3736 

+47 

3735 

3885 

751 

106 

Trill 





37A7B 3J0BB 

■ CUFFS ‘C* CSCE (37.H»bK cents/Bw) 


«P 

21615 

+665 21640 20600 

94 

36 

Dec 

2Z1JB0 

+640 22175 21650 22.7+7 

1827 

Mar 

777 IY1 

+600 


217.50 

7493 

578 

■ay 

22100 

+600 

22300 

2167B 

1032 

184 

tt 

22400 

+600 

m iw 

21600 

604 

30 

top 

22600 

+600 223.75 223.75 

379 

a 

total 





34JOO 6083 


■ COFFEE (ICO) (US centtVpounfl 


Sep IS Price Free, day 

Coop. tttW 196.75 198.40 


IS ity enrage 19801 19501 

■ No7 PREMIUM RAW SUGAR LCE (cantetos) 


Oct 

1279 

-015 

. 

- 

1.720 

- 

Jra 

11.B2 

- 

- 


- 

- 

Iter 

1271 

•064 

- 

- 

90 

- 

Total 





1010 

- 

■ WHITE SUGAR LCE (S/torwO 



Dec 

33270 

-630 

33150 33230 

1559 

BB 

Mar 

rw sn 

-020 33430 33100 

7704 

407 

■toy 

33140 

Jl 50 

33170 

33140 

889 

138 


331 JO 

•090 

333.60 

332.40 

889 

66 

Oct 

31660 

-030 31600 31600 

437 

10 

Dee 

314.40 

•030 

- 

- 

4 

- 

total 





13023 

709 

■ SUGAR ir CSCE (112J»0lt»; cerns/M 


Oct 

12jB5 

•017 

1181 

1162 2619 6443 

hit 

1156 

JHK 

1170 

IDS 

6651410761 

■«IT 

1151 

•084 


1150 11483 1,073 

tt 

1139 

+un 

1162 

1137 

7038 

614 

Oct 

1120 

-082 

1127 

1118 

12B3 

310 

ttv 

1179 

+002 

11JB2 

11.79 

740 

15 

Total 




14200616716 

■ COTTON NYCE (SOJXnba; centa/bs) 


Oct 

7DL03 

-185 

71.10 

8905 

1685 

638 

Dec 

8324 

-1.84 

7040 

6010 27083 1175 

Ibr 

70.83 

-180 

71.75 

7650 

9080 

350 

Bar 

7105 

-138 

7160 

7101 

6142 

182 

tt 

7180 

-135 

7160 

7160 

1407 

38 

Oct 

6B7D 

•090 

7040 

8670 

409 

1 

Total 





56910 4/00 

■ ORANGE JUKE NYCE (ISjOOOtos; eentaAbs) 

top 

8195 

-008 

8L80 

8400 

41 

15 

Hw 

0695 

-030 

8775 

BOZO 12171 

532 

Jra 

9075 

- 

9170 

9010 

5068 

166 

Ns 

94.06 

•070 

9570 

9400 

1903 

270 

*tor 

9735 

■070 

98JI0 

9700 

855 

12 

tt 

10006 

-070 

101.00 

10100 

496 

1 

total 





31485 1088 


VOLUME DATA. 

Open Interest end Vofcrrw date shown far 
w i tiuds traded on COMEX, NYMEX. CBT. 
NYCE. CME. CSCE and 1PE Crude Qu are ana 
dpy bi oroara. 


INDICES 

■ BEUTHtS (Base: ia/a/31 =100) 


Sep 10 Sep IS month ago year ago 
21053) 2091.1 20719 1595.9 

■ CRB Rffiaee (Base: 1987=100} 


Bop 15 Bap 14 month ago year ago 

228J90 23038 23000 212-78 


MEAT AND LIVESTOCK 

■ LIVE CATTLE CME (40.00QIOK cente/to) 


Sett BsYi 

price change «g& « 

(#.875 +0.450 69300 B9.45D 303*5 
40375 +0200 68375 68*25 20+37 
87.600 +0300 67350 67.JM 12.162 
naasn +0.100 68*0 89HS B.732 
66.150 +0.150 682 75 66.000 Ml* 
88875 +O02S 65375 80600 854 


M 

5,836 

3,104 

1.538 

006 

164 

» 


LIVE HOPS CME (40.000tt>3i owite/Hie) 


75,138 11329 


37 700 +0.12S 37.600 37.315 10,572 2,719 

s 30.425 . 38700 38J50 11,775 3JJ23 

t 39200 +8125 38250 38300 3^79 877 

IT T ff iwn +0.275 39.150 38800 2,315 340 

■ 44200 +8100 44200 44000 687 72 

■g 43.100 - 41100 42300 87 17 

290B7 7,180 

PPftK fffi i CME (40.00Qlbs: centa/lbs) 


40533 +0325 40300 38800 7354 3,030 


LONDON TRADED OPTIONS 

Strike price C toma — CaBs Pute 


■ ALUMNUM 

(89.7%) LME 

Oct 

Jan 

Oct 

Jan 

1550 . — 

55 

101 

11 

41 


39 

87 

20 

51 


26 

74 

32 

63 

■ COPPER 
(Grade A) LME 

Oct 

Jan 

Oct 

Jan 


110 

153 

7 

49 


41 

96 

37 

89 

2600 — 

21 

55 

104 

145 

■ COFFEE LCE 

Nov 

Jan 

NM 

Jan 

3800 — 

391 

402 

58 

185 


354 

433 

72 

206 

3700 

310 

405 

87 

228 

■ COCOA LCE 

Dec 

Mar 

Dec 

Mar 

975 - . — 

51 

96 

38 

54 

1000 - - 

39 

84 

51 

65 

1050 

22 

63 

84 

94 

■ BRENT CRUDE 8>E 

NOV 

Dec 

Nov 

Dec 


30 

80 

53 

. 


30 


- 


1700 

14 

34 

- 

135 


LONDON SPOT MARKETS 

■ CRUDE OIL FOB (par band/Nov) +or- 


Dubai 

31 4.80-4. 84u 

+0.075 

Brant Blend (datscQ 

Si 5.33-5.36 

+0.07 

Brent Blend (Nov) 

515.83-5.8Su 

+0.07 

W.T.I. flpm eat) 

$1 699-7.01 u 

+008 

■ OIL PRODUCTS NWE prompt riefcwy OF (krinal 

Premium Gasoline 

$171-174 


Gas on 

$147-148 

-05 

Heavy Fuel OP 

372-74 

+05 

Naphtha 

$155-156 


Jet tool 

$167-188 


Ariutain) Aigus raaesai rente 



■ OTHER 



Godd (per troy oztf 

539000 

+135 

S&ver (per troy ectf 

549.Sc 

+110 

Platinum (per troy oz.) 

$409.25 

-040 

PsttacHun (per tray tsj 

$140.75 

+1.00 

Copper (US prod.) 

124.0c 

-1.0 

Lead (US prod) 

38.25c 


Tin (Kuala Lumpur) 

1318m 

-015 

Tin (Now York) 

2415c 


CatHe ffve weighty)© 

117.10p 

-1.95* 

Sheep five wdghQtfO 

8679p 

-1.54* 

Pigs (he wdghflO 

7208p 

-17B* 

Lon. day sugar (row) 

$31640 

+100 

Lon. dev sugar fyuU) 

£340.00 


Tola 6 Lyte export 

£31100 

+1.00 

Barley (Eng. feed) 

Unq. 


Maize (US No3 Yeflow) 

$136.0 


Wheat (US Dark North) 

eisao 


Rubber (OcI)V 

800Op 

+1.00 

Rubber (Nov)f 

87.60p 

+1.00 

Rubber KLRSSNol Aug 

32500m 

+2.00 

Coconut 09 <PM)§ 

S630.QZ 

• -70 

Pafcn OI (Mabry 

$620.01 

•50 

Copra (phH)§ 

$4100 

-30 

Soyabeans (US) 

C1840U 

-1.0 

Cotton Outlook "A* Index 

7500c 

-020 

Woottops (64a Surer) 

475p 



C pw urwe untore oewnaw caSM. p penoe/hg. o ceredb. 
r rtosapAn. m Me b y tei csna/k& u Nov. t Oct. z S«p»cl. 
w (tap . V London RqWcri. S OF Ftottadan. 4 Bdbn 
mariec done. 4 Sheep (Urn eWaht priced. ' Change on 
week. O Mow are tor previous day. 


WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONDS 

Rad Day's Week Month 

Coupon Dale Price change Yield ago ago 


Austnfla 

9.000 

09AJ4 

94.0700 

♦0090 

9.95 

947 

9.37 

Belgium 

7050 

04/04 

90.9500 

-0.430 

8.67 

8.BS 

847 

Canada * 

6.500 

06/04 

84.7500 

-0.600 

8.88 

9.05 

8.96 

Denmark 

7.000 

12/04 

85.9000 

-0050 

9.17 

905 

6.96 

Franco BTAN 

8.000 

05/98 

101.3750 

-0050 

705 

703 

709 

OAT 

5000 

04/04 

82.6000 

-0.880 

8.18 

8.08 

7.84 

Germany Bund 

6.750 

07/04 

93 6200 

-1040 

7.69 

7.59 

707 

Italy 

S0OO 

(MAM 

80.0000 

-1.000 

HOST 

1209 

1166 

Japan No 119 

4 600 

08/99 

1030930 

-0.020 

3.91 

191 

3.91 


4.100 

12/03 

06.9110 

-0020 

458 

4.49 

4.57 

Noitwrtanda 

5.750 

OHM 

87.7800 

-1.090 

7.62 

7.42 

709 

Spam 

8.000 

05AM 

80.&500 

-1.100 

1140 

1102 

1107 

UK UHti 

6.000 

08/99 

89-11 

-IB/32 

8.71 

8.47 

842 


6.750 

11/04 

as - 11 

-40/J2 

8.97 

8.82 

166 


9.000 

icfoa 

100-15 

-51/32 

8.94 

8.78 

8.67 

US Treasury * 

7.250 

oatM 

98-04 

—36/32 

752 

7.42 

708 


7.500 

11/24 

96-21 

-52/32 

7.79 

7.60 

700 

ECU (French Govt) 

6000 

04/0+ 

82.8500 

-0.520 

8.74 

8 81 

849 


LcnKn ckxUng. Tin, bert mtd -dOf 


1 Oran RncHrtng Q« 01 Oil* core pj> JWe by nonrotktonrs) 


Ylokte Local rnarMt aunctoKl 


Pikmi US UK n run. otfHn In Decimal 


ECONOMIC DIARY - FORWARD EVENTS 


TODAY: Douglas Hurd. UK 
foreign secretary, continues 
visit to Tokyo. Campaigning 
starts for parliamentary elec- 
tions on October 2 in Sao Tome 
and Principe in West Africa. 
UK national savings results. 
TOMORROW: Swedish general 
election. Commemoration of 
the battle or Arnhem at Ooster- 
beek. Netherlands. John Major. 
UK prime minister, visits 
Saudi Arabia. Liberal Demo- 
crats annual party conference 
opens at Brighton, UK. 
MONDAY: International Atom- 
ic Energy Agency conference 
in Vienna. International scien- 
tists discuss gene tampering in 
Sydney, Australia. 

TUESDAY: United Nations 
General Assembly opens in 
New York. John Major, UK 
prime minister, arrives in 
South Africa. Japan's ruling 
coalition aims to publish a 
draft tax reform bill. UN-spon- 
sored disarmament talks begin 
in Geneva. UK building societ- 
ies monthly figures. Large Brit- 
ish banking groups' monthly 
statements. UK provisional 
estimates of M4 (Aug). 
WEDNESDAY: Danish general 
election. France due to 


DO YOU WANT TO KNOW A SECRET? 

The ID S Gam Smtnar «d show you how Dw markets REALLY wok. The amazing I 
racing icchntjkK of dm togonaaiy w.D. Gam can increase your prate and coraan your 
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Currency or Bond Fax - FREE 2 week trial 

also daily gold and silver faxes frtk Anne v/hiibv 

l.c", C-.irt Ar.-dyvA Lid T *l. 071-734 7174 

TSwails* Street. London 7/1 R 7H0, UK - Fax; 0 7 t .&3Q 

exchange rj!a specialist* (or over 20 years o r 


US INTEREST RATES 


■ LONG GILT FUTURES OPTIONS (UFFE) E6O000 04thsol 100* 


LwcMme 


Treasury BHs and Bond fields 


7% TVn morii 

ft nRemortk. 

4ft 5b moctl 

- ttwjor — 


4JB ten jear _ 

473 Dneiwr^ 

474 Fteyev^ 
523 10 -ywr 
577 30-yrar 



Sir** 


■ CALLS 



Price 

Dec 

Mar 

Dec 

809 

88 

2-10 

2-48 

1-08 

701 

99 

1-42 

2-21 

2-28 

tAf 

11* 

100 

1-14 

1-60 

2-82 


PUTS 


Mv 

3-09 

3- 46 

4- 20 


US 

■ US TREASURY BOND FUTURES (CBT) S100.000 3Znd9 of 10096 


BOND FUTURES AND OPTIONS 
France 

■ NOTIONAL FRENCH BOND FUTURES (MAT1F) 


ESL «QL tool. C«D« 834S PUS 8483. Frevtoua CSVM opan M, CWl 37912 Pin 30888 


Ecu 

■ ECU BOM) FUTURES (MATO) 



Open 

Latest 

Change 


Low 

Eat voL 

Open InL 

Sep 

101-23 

100-13 

-1-07 

101-23 

100-08 

11,306 

83088 

Dec 

100-27 

09-18 

-1-08 

100-28 

BO-12 

243027 

347.748 

Mer 

100-02 

98-25 

-1-00 

10003 

98-20 

1.102 

9054 


Japan 

■ NOTIONAL LONG TBMI JAPANESE GOVT. BONO FUTURES 

(urog Yioom tooths of 100 % 



Open 

Sett price 

Change 

Hgh 

Low 

Eri. voL 

Open InL 


Open 

Sett price 

Charge Mgh 

LOW 

EaL voL 

Open art. 

Sep 

1 12-38 

111.38 

-004 

11138 

11100 

48009 

38026 

Sep 

8040 

79.78 

-OJO 8040 

79.78 

568 

2.154 

Dec 

11108 

11006 

-188 

11108 

11000 

23904O 

1150S5 

Dec 

7BJIO 

7900 

•006 7900 

79.10 

1,733 

6.186 

Mar 

110.64 

109.68 

-008 

11006 

11004 

408 

4,703 
















FT-ACTUAR1ES FIXED MTEHEST INDICES 


■ LONG 

I 






. Rt 

Of*.. 

Thf 

Accrued 

xri ad) 


Dec 


Open Close Change High Low Eet vol Open tot 
10735 - - 10739 107.81 1363 0 

i traded an APT. m Opan mast 8ga ore tor previous riay. 


Fri 


TTw 


Accrued 


Sane: MACS Racmosorte 


announce its budget for 1995, 
and it is expected to be aus- 
tere. Portuguese parliament 
begins debate on revising the 
constitution. Scottish National 
Party annual conference in 
Inverness. UK balance of trade 
with countries outside the 
European Union. Bank of 
England international banking 
statistics (second quarter). 
THURSDAY: Zimbabwe's rul- 
ing Zanu-PF party holds five- 
yearly congress to elect leaders 
ahead of poll next year. For- 
eign ministers of European 
Union and Association of 
South-east Asian Nations begin 
two-day conference in Karls- 
ruhe, west Germany. UK motor 
vehicle production (Aug). UK 
financial statistics (Sep). UK 
institutional investment (sec- 
ond quarter). 

FRIDAY: North Korea and US 
due to begin new round of 
talks in Geneva. F.W. de Klerk, 
South African deputy presi- 
dent. in Edinburgh to address 
Congress of the European Fed- 
eration or Financial Analysts' 
Societies. UK quarterly nat- 
ional accounts: balance of pay- 
ments (second quarter): inland 
revenue statistics. 


Suite 

Price 

111 

112 

113 

114 

115 


Oct 

0.44 

0.15 

0J05 

003 


Dec 

108 

086 

OS2 

030 

OI8 


Mar 


Oct 


VC i. tote, cab 20352 Pua 28363 . PnMM dor* opan inu CWa 


Germany 

■ NOTIONAL GERMAN BUND FUTURES (UFFE)* DM250,000 lOOths of 10094 



— 

UK GOs Price fadoas 

Si*! 18 

change % 

Sap 16 

Merest 

yWd 

todex+Mnad 

Sep 16 

change » 

Sep 15 

interest 

yMd 

Dec 


1 Up tet 6 yotea(24) 

11908 

-004 

11807 

107 

801 

6 Up to 5 yerasR) 

18543 

-005 

18553 


305 

1.07 


2 5-15 yews (21) 

136.11 

-106 

13705 

109 

900 

7 Over 5 yeara (11) 

17007 

-O0I 

17102 

061 

305 


3 O-rar 15 

15108 

-145 

1S301 

147 

801 

8 AS Stocks (13) 

17100 

-005 

17245 




245 

4 InedeemaUee p 

17308 

-101 

175.15 

194 

303 







- 

3.13 

5 M stocks (80) 

13408 

-008 

13545 

100 

9.19 

9 Deba and leans (78) 

125.19 

-102 

12608 

141 

704 

> 


YMdB Sep 18 

Sap IS Yr ago 'Mgh 

Low 

Sep 18 

Sep 15 

fir age l^h 

Low 

Sep 10 Sep 15 

f T4S up 

Htti 

Low 



Open 

Sett price 

Change 

Hflh 

Low 

EW. vol 

Open InL 

Dec 

8908 

88.14 

-1.18 

8003 

8805 

166990 

138182 

Mar 

6820 

87.34 

-1.19 

8820 

87.62 

984 

1096 

■ BUND 

FUTURES OPTIONS (UFFE) DM250000 points el 10099 




Strfto 

Price 

Oct 

Nov 

CALLS - 
Dec 

Mar 

Oct 

Nov 

PUTS — 
Dec 

8800 

005 

105 

102 

109 

0.41 

001 

1.18 

B8S0 

030 

0-78 

1.05 

1.18 

006 

1.14 

1.41 

9900 

Q.15 

007 

003 

008 

1.01 

1.43 

109 


236 

232 

2.62 


Be VCL total. Ctfb 14653 Puts 13871 Previous day's opai ktL. Cato 188503 Puts 1B28Z7 


Italy 

■ NOTIONAL ITALIAN GOVT. BOND (DTP) FUTURES 
(UFFE)- Uni 200m lOOttW or 10094 



Open 

Sett price 

Change 

Kgh 

Lore 

Eat vol 

Open M. 

Dec 

SB.00 

9602 

-1.40 

9807 

9604 

46278 

64209 

Mar 

- 

95.97 

-140 

■ 

" 

0 

640 

■ ITALIAN GOVT. 1 

BONO (BTF) FUTURES OPTIONS (UFFE) Ura200m lOOths of 10QW 


Strike 


CALLS 


PUIS 


Fries 

Dee 

Mar 

Dec 

M* 

9650 

208 

178 

126 

309 

8700 

in 

154 

149 

307 

8750 

107 

203 

175 

306 


Es. vd. XtaL Grib 214 Puts 837 Prwntxo day’s open h(_ Cab 0871 Ate 135*7 


Spain 

■ NOTIONAL SPANISH BOND FUTURES (MEFF) 



Open 

Sett price 

Change 

»9h 

Lira 

E9L veL 

Opan fat 

Sep 

8701 

86.13 

-1.07 

8704 

8600 

57.779 

40,575 

Dec 

8090 

34.65 

- 1 . 1 s 

36.09 

3400 

23030 

58091 

UK 









■ NOTIONAL UK QLT FUTURES (UFFE)’ £50,000 32nga ct 10094 



Opan 

Sett price 

Change 

Hgh 

Low 

Em. vol 

Open fat. 

Sod 

100-08 

89-02 

-1-08 

100-08 

96-03 

1643 

20678 

Dec 

89-22 

98-06 

-1-13 

89-24 

68-02 

77448 

84948 

Mar 

- 

97-20 

-1-13 

- 

- 

0 

0 


Mo 

20 yrs 
ktod-t 


838 838 637 836 (16/ffl 537 

833 835 7.18 833 (16199 630 

874 838 730 175 (1« 141 

8.77 837 7.44 838 (1AR 632 


(1971) 

2071 

2071 

24/1) 


831 674 633 691 (169) 5.82 (1971) 

837 679 739 837 (16/B) 639 (20/1) 

837 679 7.34 837 (16/9) 642 ptVI) 


607 687 832 607 (18/9) 

9.19 602 7.53 934 (1/8) 

9.01 835 734 605 (1/8) 


531 (1871) 
683 (2071) 
835 CO/I) 


Up to S yn 
over 5 yra 

>6 


338 

332 


331 

3.87 


237 4.03 Cl/I 

331 339 (Zli 

S ware 


i13 ^, 


2.88 


230 2.72 1.73 

672 607 332 679 (21/Q 2.70 (20/1 

— I5yaw» 


237 n/8) 1.19 (10723 

n/i) 


2S 


0.79 733 10.0 (21/8) 7.19 (10/1) 

yields ana shown above. Coupon Bends 


688 9.72 622 690 (1/8) 739 pan) 

Lear. Q%-7*14; Medium: 896-10*96: High; 1196 end 


FT FIXED INTE RES T INDICES 

Sep 16 Sep 15 6«p 14 Sep 13 Sep 12 Yr ago Ugh- 


Low- 


930 934 B.3B 9.84 (1/8) 

r. f Hal yield, ytd Year fa date. 

GILT EDGED ACTIVITY INDICES 

Sep 15 Sep 14 Sap 13 


7.49 (1071) 


Sep 12 Sep 9 


Govt. See*. (UK) 8939 9676 9644 9130 91.12? 10131 10734 

Fbafd totarast 70730 70731 107.83 1Oa02 10737 12235 73687 10730 

- lor IBM. O u vw ni wra teute Ngh atoco ooffptoflorr izr.40 (971/351. low *9. IS p/t/ret Ftod I 
28 and Rred biwrert 1828. 8E oaMy kxftreo rebawd IffTU. t ConocOon. 


UK GILTS PRICES 


*** Edged bwyeliia 864 867 1113 860 111.7 

May awn?* 961 893 963 93.7 968 

i 13187 (21/UB4) . low 50*3 (3#1/7S) . Bate 100: Oovmitont SecuHte Ifl/IIY 


_«te. — 1B94_ 

Wn H tod Price E ♦ or- Hpi Low 


tod MoiS + v- 


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ugh i am 


OPriOPE 


Stertri* ghoa vhHnltea 

Treai toe 199*8 

iZgcl993 

EnhOpctoi l990-as . 

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86* 

97% 

S0G 

607 

102% 


107B 


1101 

7.07 

10M 

-*• 

113% 

in* 

1182 

702 

■OB'! 


117* 

10B% 

im 

7JS0 

111 U 

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121 a 

iiiB 

1121 

708 

uWa 


11733 

108% 

903 

790 

183% 

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112£ 

103% 

722 

119 

96U 

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1107 

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1001 

004 

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114* 

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10031 

1190 

854 

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11541 

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191* 

11 SB 

1162 

307122%! 

-fi 

140* 

12253 

1004 

U1 

I1H 

-B 

1260 

110% 

9JO 

179 

UK’s 

-« 

116* 

102% 


TrB*f11‘2JK2£Xn-4 

1042 

O3E110*til 

-a 

129B 

110* 

Friribg3 , 2W T99S-4_ 

406 

704 

70* 

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08* 

70* 

0*rarrim9iaic2004_ 

128 

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102% 

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125* 

102% 

Ita&BApcaXXtt 

701 

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825 

9091Q2BM 

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1009 

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1053 

008 

nag 

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7%pc200BPt 

002 

099 

OOG 

-1% 

11% 

80U 

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868 

907 

92%ri 

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111% 

92% 

Tim 1 1 %pc 2003-/ — . 

1007 

9.40 

113* 

-i* 

136* 

113* 

Haas lltsc 2007# 

802 

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96» 

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13%pc 2004-a 

1078 

9081 

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181* 

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Trias ppc am 14 

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Trrastaic2m- 
logs 296i 

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7bcOT1*_ 

9(^e20B 

»C 3)03 8— 


1003 

901 112%M 

-H 

129* 

112% 

900 

80S 

106* 

-B 

121* 

108* 

072 

972 

89% ■ 

-tt 

1D1U 

99% 

9.74 

992 

105% 


12111 

105% 

- 

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99H 


too* 

3® 

097 

991 

100* 

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11.10 

910 

117% 

-a 

138B 

117% 

981 

911 

1(H* 

-5 

122,% 

104* 

702 

809 

88U 

-ii 

106* 

89& 

702 

900 

89% 

-S 

101* 

60% 

94S 

915 

103* 

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123* 

103* 

000 

909 

raa 

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1133 

93B 

952 

015 

105* 

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1Z7* 

105* 


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954 

902 

92%fl -1* 

115* 

IriesB IMpcJDIO 

706 

974 

78* -1* 

98* 

cm 9pc Ui 201 Itt 

003 

905 

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126(1 

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808 

963 

1013 -13 

127% 

TmtS%pc 200S-12ft_ 

704 

959 

72* -1* 

93% 

Irira toe 2D13« 

962 

973 

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7%pe ana-4 s*f — 

9S6 

975 

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114% 

Irira 6%pe an 7tt 

974 

974 

100% -1# 128% 

Ea*12pc 2013-17 

943 

9M 

127* -1H 

159% 


gfe=nsa ss iiSToS 3 s s 

17131 142 336 164 Ad 178% II 

J 53 188 ,60 ‘’* -■* 11 

(1353) 153 137 108U -4i 11IP| 11 

XB2 in 166% -fl I84il II 

jjipeve — (783) 137 191 IS0>| -l 188,’. V 

£*2 351 ,5S » -'i in* li 

— "“5®^ 174 W3 iz7*2 -ii i48i« i: 

175 333 |36J » 'S/a i: 
IwSlSs — £2 32 a»ia«VN -ii 1 S 2 S i: 

'W'lR (97.1) 179 332 HXW. -I. 1 . |29A H 

gn tnftioon Of (11 1 

Ste.S.r ii ^ h P«rth*M wiow HP1 bora 

™™’9fconiai^ urtw to and have been reflustw 
teJOO to January 1987. Conversion hi 
33*5. RP1 lor January 1994: 1415 and tor August 1964; I44J 

Other Fixed Interest 


Hoik 


_ 1994— 

te Bed M«e+ar- Hji Uw 


1 Ope 2003 

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603 

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604 

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71 

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606 

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44% 

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977 

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38% 

1riai2%pc 

607 

- 27% si 

-tt 

37% 


mAmitot . EAodtan bote rf Ex dMdmd. Ckwng rnkFprtow wo riwre to pounds. 


*6*10 Dw III, 2010—. 
teen Dor lOtrpc 2009— 

BTw II <206 2012 

Cw8>2pc *I0_ 

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901 

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103% 

98% 

1ZJ4 

— 

106% 


116% 

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1001 

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199)) 

136% 

10.07 

- 

128% 


148% 

125*1 

950 

- 

Mb 



44% 

33% 

909 

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32 


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28% 

10.13 

9.70 

113% 


136% 

112 

4.44 

900 

67% 



78 

68% 

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452 

131% 



150% 

129% 

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400 

13% 



145% 

123% 

12.13 

- 

139 



158% 

131% 








FINANCIAL TIMES WEEKEND SEPTEMBER 1 7/SEPTEMBER IS 1994 


13 


CURRENCIES AND MONEY 


C MARKETS REPORT 


Dollar struggles 


Boiler' 

Wp #*•'- 


Sterling 


French franc 


■V You per $ 
101 


Renewed US Inflation fears 
yesterday prompted a sharp 
fall in the dollar on foreign 
exchanges, writes Philip 
Gatmth. 

A jump in the August capac- 
ity utilisation figures caused 
bonds to plummet, and the dol- 
lar followed suit It closed in 
London at DM1.5376, down 
from DM1,55 earlier in the day. 
and at Y98.855, down from 
Y99.20. 

Sterling was a beneficiary of 
the dollar's weakness, touching 
a sixteen month high of 11^870 
before slipping back below 
$1.58 In late trade. It was also 
stronger against the D-fltoric, 
spiking above DM2.44 in late 
trade, compared to Thursday's 
close of DM2.4183. The trade 
weighted index finished at 79.8, 
from 79.2. 

The D-Mark was generally 
weaker in Europe. It finish**? 
at Ll.Oll against the lira, from 
Ll,Ol2. Against the French 
franc it closed at FFr3.4ZS, 
from FFr3.422. The Swiss franc 


Also considered its upward 
progress, dosing at SFrO.822 
from SFrO.83. 

■ Although the dollar is only 
about one pfennig, and two 
yen. above its July lows, some 
analysts were impressed at its 
resilience. Mr David Cocker, 
economist at Chemical Kwnv 
commented: “The dollar has 
performed rather well today 
considering the way the bond 
market has performed." 

■ Pound hi Haw Yotfr 

stf is — Latest — - ptw. don - 

Esbm 1.5M5 1.5820 

1 imh 1JJB3B 1JSC1S 

3(Mb 1.5820 15G94 

' n 1-5087 13436 

In recent weeks the market 
has been less keen to sell the 
dollar, leading some analysts 
to hint at a possible change in 
sentiment. 

The dollar, however, still 
faces some serious short-term 
obstacles. One is the markets' 
fear that the US Federal 



IBB* ■ 

SouwtTOMpbtn- ■. ' 

Reserve is “behind the game” 
in combatting inflation. The 
dollar is unlikely to recover 
against this background. 

The other problem is politics. 
The Haiti issue, and the US-Ja- 
pan trade talks, which reach 
an end of month deadline, both 
have the potential to cause dol- 
lar a»TUng 

■ Against an environment of 
generalised. D-Mark weakness, 
the Swiss franc continued to 
strengthen. 

Two factors supporting it 
were the Haiti Invasion talk - 


MONEY MARKET FUNDS 


Money Market 
Trust Funds 


Cam M OS UB 

CAF Money tfaumment Co Ltd 
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(Mean banal Find— I 4JB - U9 M 

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Tho COBF Gharittoc Danrit Account 

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Das Km Bank (Londoiri Pt£ nwier Me 

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OHM 


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a a Jan a. MeuresM »*j *ou oei-exMM 

najUD+eMBS [ 7M issa I 784 

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CJM.FMIttaUmla.'S 6.1875 I 734 


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“If you have a safe haven, it is 
the Swiss franc,” commented 
one analyst - and the tradi- 
tional strength in the franc 
of German elections. 
Sterling was also a notable 
beneficiary of the D-Mark's 
weakness, but analysts said 
there was also an element of 
jnrip p wiifpTit strength. 

“The psychology of the mar- 
ket was transformed by Mr 
Clarke's decision to raise inter- 
est rates. The prospects for 
sterling have improved dra- 
matically,” said Mr Cocker. 

He said that rates had been 


raised two months ahead of 
market expectations. “It is not 
known in the UK for chancel- 
lors to do that It could be seen 
as a radical change in UK mon- 
etary management” 

■ The larger than expected 
August PSBR figure, and the 
downturn in the gilts market 
hit short sterling. All the 1995/ 
1996 contracts lost about 15 
basis points. 

In its dally operations the 
Bank of England provided UK 
money markets with £270m 
late assistance. Earlier it bad 


provided £100m assistance, at 
established rates, after fore- 
casting a £50Qm shortage. 

Euromark contracts also lost 
ground, with rumours in the 
market that interest rate 
hawks on the Bundesbank 
council were beginning to flex 
their muscles. 

ROTHR cumneB 


Sop 16 £ 

Hungay 16X374 • 16X636 

Inn Z742J30 - 270500 

Marat Mm - 0.4719 

ram 3633X4 - 3640X9 

Russia 964160 - 367170 

UAL 56161 - 56286 


6 

106630 - 106.430 
174X00 ■ 175000 

asm-amt 

2294X0 - 2237X0 
J2B9J30 - 231X00 
36715- 36735 


POUND SPOT FORWARD -ASArNST THE POUND 


Sepia 


Closing Change Bktfoffe r 
rrrid-potnt on dny spread 




AGA)FJ-S.T THE COLLAR 


Day's MM 
high low 


One month Three months One year Banked 
Rate MPA Rale *PA Rata %PA Eng. index 


Sap IS 


(Bch) 

17.181 B 

+0.1158 

625 - 712 

€BFr) 

50.1178 

+03203 

861 -494 

(DKr) 

50049 

+00608 

003 - 095 

(FM) 

7.7983 

*n QQQ9 

889 - 097 

(Fft) 

53258 

+00517 

216 - 300 

(DM) 

2^4358 

+0.0173 

343 - 308 

(Dr) 

370.730 

+4.173 

539 - 632 

m 

1.0100 

+00027 

151 - 169 

H 

2462J39 

+15.B3 

171 - 408 


50.1178 

+03203 

801 - 494 

(R) 

2.7313 

+0.0179 

300 - 325 

(NKr) 

106838 

+00883 

788 - 888 

(E*l 

248J7I5 

+1378 

818-212 

(PhD 

302.309 

+1386 

185 - 452 

(SKi) 

11.7828 

+00547 

529 - 722 

(Sfi) 

2.0312 

+00138 

198 - 226 

(0 

- 

. 


- 

12782 

+00071 

772 - 791 


17.1710 159703 

17.1675 

53 

17.1467 

04 

- 

. 

1151 

Austria 

(Sch) 

501510 493880 

501328 

-04 

509778 

03 

407928 

06 

1183 

Brigkan 

(Bft) 

9.B102 93063 

ft£0B6 

-03 

9329 

-19 

93710 

-57 

1184 

Denmark 

(DKr) 

73110 7.7150 

to 

- 

- 

- 

- 

- 

849 

Finland 

(FM) 

53312 52370 

53254 

51 

5327 

-Ol 

82811 

50 

1154 

Franca 

CFFr) 

2.4373 24079 

24346 

03 

24318 

56 

24024 

1.4 

1282 

Germany 

(D) 

371.105 365024 

- 

- 

- 

- 

- 

- 

_ 

&B8G0 

(DO 

1.0174 1.0008 

1.019 

51 

19171 

-04 

1.0218 

-0.6 

104.7 

Ireland 

(K3 

2464.12 243571 

248939 

-3.0 

248136 

-39 

254569 

-3.4 

753 

Italy 

(U 

60.1610 46.8880 

501328 

-04 

550778 

53 

49.7928 

as 

1183 

Luxambocog 

Oft) 

2.7325 23993 

27304 

04 

27272 

58 

28947 

13 

1203 

NstherkndB 

(FJ) 

10.8891 103742 

103834 

03 

103855 

-Ol 

156879 

09 

869 

Norway 

(NKr) 

248240 2*5391 

240745 

-6.4 

pro a on 

-79 

- 

- 

- 

Portugal 

(£*) 

202404 199.955 

202714 

-24 

203.444 

-22 

206273 

-20 

859 

Spate 

(Pta) 

11.7737 11.6255 

11.7816 

-19 

113291 

-23 

120428 

-24 

753 

Sweeten 

(SKi) 

2.0231 20010 

201 BB 

13 

20129 

13 

1.9774 

22 

123.1 

Swttzertand 

(Sft) 

- 

ra 

- 

- 

- 

- 

* 

793 

UK 

(0 

1.2782 1.2871 

12788 

-0.3 

1979 

-02 

12599 

1.4 

- 

Ecu 



Europe 
Austria 
Belgium 
Denmark 
Finland 
Franca 
Germany 
Greece 
frriand 
Italy 

Luxamboug 
Netherlands 
Norway 
Portugal 
Spain 
Sweden 
Switzerland 
UK 
Ecu 

SORT - 0095405 

(Peso) 1.5833 
(FV) 13559 
(CS) 2.1382 
Mexico (New Paso) 56817 
USA (S) 1.5840 

PaeMc/MMdto EaatfAfrfca 
AuriraHa (AS) 2.1202 

Hong Kong (HKS) 126396 
(Rag 49.6881 
(Y) 155586 
(MS) 4.0475 
New Zeetand (N2S) 56219 

Philippines (Peso) 41.0258 

(SR) 5JJ407 

(SS) 2.3491 

S AMca (Com.) (R) 5.8252 

S AMca (Fhv) (FQ a 9778 
South Korea (Won) 1287.88 
Taiwan fit) 41.5289 

niaUand (Bt) S&S287 

fSOR ram wr Sap 16. BfcttjHw spreads In dm Pound Spot nUa dxw only taa lost Uinta dacBnal pfaces. Format! rams an nor tfeaary quomd to too 
manner but m taxtaed tty current anaraat istoa. Stsrino hdsn crinferad to toe Barit of Bigmnd. Bara to w n* 1086 - 105BM. Otlar and Md-ratra to froth 
tnn md tfw Dobr Spot totoaa daitnd 6cm IMS wm/REUTCRS CLOSMQ SPOT RATES. Some vrim am roundod toy toe FT. 


Closing Change BkVofler 
mid-point on day spread 


Day's mid 
hlrfi low 


One month Three months One year J.P Morgan 
Rato %PA Rale %PA Rata HPA Index 


Bmp* 


0» 234.Q50 


(U 1864.86 


8,7447 


1-2780 


- 1.46505 


Argentina 

ftazB 

Canada 


Inda 
Japan 
Malaysia 


Saudi Arabia 
Stogopore 


+O-O2O0 827 - 839 
*03175 539-579 


15842 1.6614 
13S81 13395 


+09229 

382 - 402 

21409 

21108 

21387 

53 

2.1381 

02 

21368 

51 

973 

+0.0482 

780- 873 

53880 

53091 

- 

. 

ra 

- 

- 

» 

_ 

+0.0205 

835 - 845 

13870 

13622 

13833 

55 

13815 

03 

13858 

1.1 

820 

+00256 

276 - 308 

21310 

21016 

21291 

50 

21305 

-02 

21487 

-09 


+01585 

348 - 442 

122448 120727 

122357 

54 

122348 

52 

122417 

50 

- 

+03372 

704 - 058 

49.7000 49.0140 

. 

- 

- 

ra 

- 

. 

_ 

+1205 

497 - are 

150730 154.650 

156210 

28 

155318 

32 

155321 

49 

1883 

+00518 

454 - 495 

4.0501 

29930 

- 

- 

- 

. 

- 

- 

- 

+09318 

200 - 238 

26243 

25881 

26268 

-13 

28338 

-13 

26558 

-13 

- 


SORf 
Americas 
Argentina 
Brazfl 
Canada 

Mexico (New Peso) 

USA ($) 

Pacflta/MWdta EastfAfrica 


(Peso) 09996 
m 0.8530 
(CS) 1.3505 
53975 


*04919 960-555 
+0.0768 388 - 428 
+0.0221 475 • 508 
4Q.068S 222 - 281 
+00434 595 - 956 
+16.8 648 - 887 
+56554 130- 448 
+0.4881 004-570 


41.3500 450910 
5.9467 5.8SS3 
2.3513 2.3195 
5.6333 53549 
0.9966 6.9037 
126887 1249.92 
418459 40.9406 
398600 398240 


Aistrela 

(AS) 

13442 

Hong Kong 

HKS) 

7.7270 

India 

m 

313688 

Japan 

(Y) 

983550 

Malaysia 

(MS) 

23552 

New Zealand 

(NZS) 

13552 

Phqpfrina* 

Pmo) 

253000 

Saud Arabia 

(SH) 

3.7505 

Singapore 

(S3 

1.4830 

S Africa (Core) 

(H) 

33513 

S Africa (Fla) 

(R) 

4.4050 

South Korea 

(Won) 

800300 

Taiwan 

OS) 

282178 

Thailand 

(BO 

249650 


-0368 

320 - 370 

10.9175 158320 

-521 

300 - 500 

314100 319300 

-a 0471 

827 - 847 

8.1184 

50706 

-50582 

188 - 288 

49850 

49188 

-09366 

562 - 572 

53078 

S2552 

-50091 

373 - 379 

19512 

19373 

-54 

000 - 100 

238.780 234900 

+50161 

582 - 399 

19899 

19383 

-152 

460 - 510 

1585.75 1553.70 

-021 

300 - 500 

319100 319300 

-50112 

240 - 245 

1.7385 

1.7240 

-5048 

437 - 457 

89048 

57437 

-1945 

500 - 650 

157.750 156900 

-566 

870 - 770 

128950 127.770 

-50624 

221 -298 

79100 

7.4187 

-0.008 

755 - 765 

19905 

1.2755 

+50206 

035 - 845 

19870 

1.5822 

+50092 

388 - 398 

19398 

14287 

+50002 

90S - 998 

09996 

09993 

- 

550-570 

04570 

0J500 

-50031 

503 - 507 

1.3535 

19482 

-5015 

990 - 000 

3.4000 

39950 

-50013 

435 - 448 

19457 

19435 

+50001 

265 -275 

7.7278 

7.7285 

-50037 

875 • 700 

319700 31 9675 

-5525 

300 - 800 

B9j4500 989000 

-09004 

547 - 557 

gjaM 

29547 

-50018 

545 - 559 

1.6573 

19545 

-0925 

000 - 000 

28.1000 25.7000 

- 

503 < 506 

3.7508 

3.7503 

-09053 

825 - 835 

1.4885 

14828 

-0004 

505 - 520 

39575 

39505 

-0.03 

950 - 160 

4.4400 

49950 

+035 

BOO - 800 

805800 799900 

+50115 

1B0 - 195 

252195 282090 

-5015 

450 - 650 

249750 249450 


109345 

50 

15B343 

50 

157585 

a7 

1049 

31.6472 

-09 

31.68 

-53 

31.795 

-09 

1059 

50702 

-19 

50902 

-1.7 

51674 

-1.7 

1049 

49238 

0.0 

49308 

-09 

49788 

-1.1 

799 

52S87 

-09 

5284 

-09 

59307 

0.6 

1056 

19378 

-09 

19378 

-51 

19338 

09 

107.0 

23498 

-15 

234.975 

-1.6 

237.728 

-19 

894 

19585 

09 

1955S 

as 

19371 

1.4 

- 

15599 

-39 

156995 

-3.7 

182495 

-49 

757 

31.8472 

-09 

3198 

-09 

31.795 

-55 

1059 

1.7246 

-09 

1.7248 

-ai 

1 . 7195 

09 

1059 

57497 

-59 

57897 

-19 

69422 

-1.4 

951 

157925 

-57 

161 

-119 

105975 

-57 

959 

128995 

-3.0 

128955 

-2.fi 

1319 

-50 

859 

7.4424 

-2.7 

7.4809 

-3.0 

79734 

-39 

80.4 

1.2749 

1.0 

12 728 

1.0 

1981 

19 

1054 

19833 

09 

19815 

09 

1.5658 

1.1 

879 

12384 

59 

19368 

09 

190B2 

2.4 

- 


19608 

-53 

19618 

-54 

198 

-0.7 

849 

39885 

-54 

34003 

-53 

34077 

-53 

- 

- 

- 

- 

- 

- 

- 

959 

19446 

-52 

19462 

-53 

1.3525 

-09 

874 

7.7288 

50 

7.727S 

50 

7.7425 

-02 

_ 

314538 

-39 

319988 

-29 

- 

- 

- 

08965 

29 

95205 

29 

9593 

31 

149.1 

2948 

49 

29347 

32 

29082 

-31 

- 

19561 

-57 

1958 

-57 

19833 

-55 

- 

3.761 B 

-04 

3-7556 

-58 

3.7745 

-58 

_ 

1.4817 

t.1 

1.4798 

59 

1473 

57 

- 

3.5688 

-52 

39951 

-49 

3971 B 

-34 

- 

44387 

-82 

4.497S 

-54 

• 

- 

- 

8039 

-49 

8069 

-32 

8259 

-31 

- 

202378 

-09 

252778 

-09 

- 

- 

- 

250275 

-39 

2515S 

-32 

25.638 

-2.7 

- 


TSDR rata tor Seo 15 Rdftriter spreads In th* Oohr Spot ubta maw only lha last torae darimri pieces. Forwind ram ore not tSracriy quoted to the rasrtat 
but are knptad by bum Mans: ne n o- UK. Ireland 4 ECU are quoted h US curancy. JJ>. Morgan rarinaJ ndcea Sea IS Base aiHeapa iBGOolOO 


CROSS RATES AND DERIVATIVES 


EXCHANGE CROSS 

SeplB BFr 


RATES 
DKr FFr 


DM 


R 


NKr 


Pta 


SKr 


9R- 


CS 


Ecu 


Belgium 
Denroark 
France 
Germany 
Ireland 
Italy 


Norway 

Portugal 

Spain 

Sweden 

Swdtxertand 

UK 

Canada 

US 

Japan 

Ecu 

Donah Kroner. 


(BFi) 100 
(DKr) 52.19 
(Fft) 6020 
(DM) 20.57 
OQ 49.33 
W 2.035 
(H) 1885 
(NKr) 48.93 
(Es) 20.21 
(Pto) 24,78 
(SKi) 42.82 
(SJ-r) 2480 
<SJ 50.12 
(Ct) 23 A3 
(5) 31.64 
CO 32.03 
39.22 

Trench Franc, 


19.18 

10 

1183 

3.943 

9.453 

0890 

3.517 

8JB93 

3873 

4.747 

8.167 

4.752 

9804 

4.490 

&063 

8137 

7515 

Kroner, 


1861 

8.689 

10 

3.418 

8J95 

0838 

3849 

7.796 

3857 

4.118 

7.0BO 

4.120 

8326 

3.892 

6856 

5820 

8515 


4.880 

2836 

2-926 

1 

2896 

0.099 

0882 

2881 

0882 

1804 

2.071 

1205 

2-436 

1.139 

1S38 

1.557 

1.906 


2-027 

1.058 

1820 

8417 

1 

ao4i 

0872 

8951 

8410 

0802 

0884 

0803 

1.016 

8475 

0641 

0848 

0795 


4914 

2565 

2968 

1011 

2424 

100 . 

9018 

2308 

983.1 

1*17 

2094 

1219 

2463 

1151 

1555 

1574 

1927 


0449 

2844 

3880 

1.121 

2.888 

am 

i 

2867 

1.101 

1850 
2822 

1851 
2.731 
1877 
1.724 
1.745 
2L137 


2181 4948 4038 23.46 4.032 1895 4868 3.160 3128 2850 


11.12 

2582 

2109 

1224 

2104 

1941 

2227 

1.849 

1830 

1931 

Nattwlands 

219872 

214886 

+500048 

-219 

542 

1293 

2979 

243.0 

14.12 

2427 

1201 

2589 

1902 

1889 

1935 

Brighon 

402123 

394613 

+5029 

-1.89 

5.10 

4984 

1019 

8305 

4.828 

5830 

0411 

5878 

0-650 

6424 

0925 

Gatmany 

194884 

191667 

+0.00115 

-1.69 

499 

1551 

244.1 

1951 

1197 

1989 

0984 

2.105 

1-559 

1540 

1258 

Ireland 

5808828 

0901035 

-0902164 

-594 

499 

0434 

10.07 

5214 

5477 

5082 

5041 

5087 

5064 

6954 

5052 

Franca 

893883 

895322 

+500441 

022 

289 

3911 

9021 

74.08 

4906 

5740 

5366 

5783 

0980 

5791 

5468 

Portugal 

192054 

194987 

+5018 

1.11 

199 

10 

2322 

1854 

1191 

1992 

0936 

2003 

1483 

1455 

1.197 

Panmoifc 

743679 

7.55956 

-500215 

195 

1.44 

4906 

105 

8197 

4.742 

0915 

0403 

5883 

0939 

6310 

0915 

Spain 

154250 

150056 

+5301 

312 

500 

5279 

1229 

100. 

5913 

0999 

5494 

1957 

5783 

7798 

5632 







5082 

2109 

172.0 

10 

1.719 

0950 

1919 

1947 

1331 

1987 

NON ERM MEMBERS 





5285 

122.7 

100.1 

5819 

1 

0495 

1958 

5784 

7744 

0.632 

Qraeca 

284913 

291982 

♦0967 

1535 

-698 

1098 

2489 

2029 

11.78 

2021 

1 

2139 

1.584 

1589 

1278 

Italy 

179318 

193474 

-527 

799 

-443 

4993 

1159 

94.56 

5498 

0.S45 

0488 

1 

5741 

7317 

0997 

UK 

5786749 

5790150 

-0.001808 

043 

297 


and Swedah Kronor par 10; Belgian Prune. Yen. Eaoxto. 


0742 
8824 
8857 
Uni i 


1508 

1588 

194.1 


127.7 
1298 
1588 
par 100. 


7.424 

7814 

9802 


1878 

1801 

1881 


0631 

0638 

0782 


1850 

1887 

1874 


1 

1J012 

1239 


9060 

100 . 

1228 


0807 

0817 

1 


■ IMMHK wmnMtt (IMM) DM 12SJ00 per PM 


■ JAPANESE YSHnm>RCS(B4M) Yen 12.5 par Yen 100 


Open 

Latest 

Change 

High 

Low 

EsL vri 

Open tel. 


Open 

Latest 

Changa 

Ngh 

Low 

56445 

0.6490 

+0.0035 

0.6502 

58445 

15389 

05788 

Sep 

19082 

19110 

+50049 

1.0122 

1.0074 

58401 

09488 

+50023 

58605 

OB445 

26288 

67934 

Dec 

19128 

1.0179 

+0.0053 

19198 

19120 

58475 

56495 

•50023 

58*95 

0.8470 

286 

3.725 

Mar 

1.0220 

19217 

+59017 

1.0220 

19217 


Sop 

Dec 

Mur 


■ aw»a WIAMC FUTURES flMM) SFr 125 JOO por SFr 


Eat vd Open mL 
3,984 31A31 

13.450 37882 

35 2.145 


EMS EUROPEAN CURRENCY UNIT RATES 

Sep 16 Ecu cen. Rate Change % +/- from % spread Dlv. 

rates ageing Ecu on day cen. rale v weakest bid. 


14 

6 

-2 

-7 

-11 

-22 


Ecu rartrei rates rot by toe European COrreHbean. nnenda* ara in daacondbv retain strength 
Paroareaga changaa am ter Ecu; a peer** change dmrea a waax cunancy. Dhairpanca etitare the 
rado uui waan two na ea ita. th* peroantage dflerence bsnmwi ow acbial market and Ecu cereal ram 
lor a wrancy- end toe maximum penrinad par c antaga da re t ta i a I toe anrncyi marten rate hem Ha 

Ecu cereal nan. 

(17/9103) Staring and balm Lira nepunded tom ERM. Aflintment catoutaanj by toe RnandM Timas. 
■ PMLADOPMA SE C/S OPTIONS £31850 (cents per pound) 


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C2SJtaDtaCUAflB_ 

ciiunouiaajHe — 
CUKDtaZSLSffi 


ib« SJ5 am 
+.7S ass AM OB 

Ud 3JB Ml OB 

42S 319 *JB OB 


Irate 


JuBre Hodge BaakUd 
lankarorFBcaCamBCFi tax 

iiraiFtaaMiDrataisI bm 

iHDRrenraitaHite aa 

1IBMttB«alwl BJ3 

Humberctyda Rnsnca Greg 

» —IB lllta. IB* BiOmnilaj 
EfiOJMO*. 1 9.73 4J1 I 


rasneo 

aai 

44d 

Oj« 


E1AMa.WH 

OMO-taMOM 

n ojmo-e2A.9ae aa ._ 

czsinxHiramiaB— 

£30000- 


100 ora 
330 zaa 

3.76 201 

<00 300 

425 3.19 

4.76 Ut 



MtldMIl LBttMMI & CD Ltd 

30 Oy Rota), tretan ECTT »7. 

Tiaaaai Xiiraat-tar* 

essaxo-c«80OB 

ESOiMO or ran 

IMtekKACc-b 

i*im 
£10000 _ 
rmm -UtM 
130000 or nun 



1 M Hanftb Tara HO. lADtan IM5 ST 
rucx £3000-1 „ — I <0 

RMnwert BeuMM Private Btrak 


07i -see 2323 


071-207 1908 
sol <07 1 ore 


4J3) 3076 

<.7S 35825 1 

tarer tanai vraora - ykaro C 


Swifc IrelaW (Ira fnttnw Ctaqw/to 

iMowrAWeTim , 0763 sibsi 6 Mdand Bank olo 

210000 * 4000 3000 I <0M OB rSUcrel 

E20OOHC90O9 I 300 3250 I 1031 1 Or TO HO z, Nnwu 


071^071930 

KiCA 82000-1 1300 a.129 1 43)1 raa? 

Ltods Bank — bnestnau Account 

71 Canasta 3. IMa Dap 303 0273430373 

£100000 ana BboM — | SJS 3B4 I 9^3 1 rm? 

ESD0OO- 616 Jtal 9ismry 

03000*. 1 <08 1711 -S3 ] Yawl? 

naao- I 479 o» I ♦.»! mi 


BaflfcorSGSHaad 
3S Ttarainarea St. EOF 2B1 
■IIH*xtZ3ta42UB_ I 300 302 

C2S0OO-C24O0BB 400 300 

0260000* 1 330 4.12 


Barclays Solact 
pgtoiiaiMn 


407 im — 
964 1 Ip B BUUI 1 I 


Mtesooo* 

n ofioo* 

129.000* - 

HaB c ni teBMaScc- 


ITS 

zai 

3.71 

<J0 

ur 

UO 

5.00 

ins 

500 

IM 

< 12 

UO 

Sta 

- 

U9 


ria VHnmod Bn ra. Oraray 



wiMunmaa 

£1O0OO-CZ4.O9B^ra 
£230OO-COjm 
■30.000^90009 

enxuno-Wrad 


npm tar. Sataom Lima 

£2000-14009 

C30OO-C9.99O 

C1O0OO-C2409O 
£2S0OD-C4fl0BB 
£90000*. 



_ J£3D0DO». „ 

OMnagre (90000+ I 4.19 

CbuMmot Bank UmBed 

I PtaSOMar faw. EC4U 7DK 

tzsoo-eitfn- 

£2O I OOO-£<S0BB 

C9O0OO-CHLBBB 

£1 00.000*- 

gJ M -HMW- 

KMH9Un 


325 201 

400 300 

<29 119 

4. SO 401 
209 206 

325 344 

300 203 

3.75 201 

to 


Unwed RM1 3UL 0000 202101 

. 413 100 I 421 

TESS4 Itaud 1 Van X84 - 500 

iBsaunaWa 1 40a -1 soo 


071 -M 

4000 

Trodafl Bank ric 










430 

lot 



2JC9 

3340 

431 

MA 

OsaoOMNA £10000* 

X62S 


1*75 

<57 

MA 

MM £50000* 

3750 

uni 

3303 


MA 





130 

MA 

TVnflnl TESSA 

4375 


4.447 

3JC 

Ml 

Mta 

anted DamHoa Trart Ud 




dire ad 2119 

Bank Rmdbbt Sotatkm Acc 

iVtaoMnara.itoagMGia<. 04t-2a«7Q70 

OO0re-ff 48096. I 370 2.7* 375 08 

tUMOmm 300 205 305 DO 

1 4M 338 I 4581 Or 


fOBo»S2.Hotte.B*4 0Crf 

Crotw ran AreaJtacret 

0000. 1 529 


IM 


081-447 9498 
I 333 1 OB 


QoIMTnBt Bank Ltd c , 

1 Creel Qnontaail H Lnfen wih 7$ 
£10000-00 Oh radta. I 675 30E I 

CitUDO-lHtarntaa- 1 7Jo 503 

EZ90QO - 1 Year 1725 544 I 


The Co-Murattm Bank 

PO BO 300. SteAwrbl*. Una 0341252000 

1EES4 1 90S -I -lYHrty 


tottrare- Can! Bred CantMHaaal 

UBSmar 1400 30*1 501 1 Urn 



071-382*000 
201 I 303 1 Ml 
309 I 41* I Ml 


m-noaitatoBMiia 

£50000* 1 X25 304 

C25JOOO-C4B099 450 

£1O0OO-CM.M9.„ I 400 

E50OO-CS0BO I 300 

Italta-HHII 

£50000* 37 

£10000^49099 1 325 

ES0OO-E9099 1 225 

BrataaraOdtadt - tataot Itacan 

£250000* 40* 305 

E500OO-C24800B 300 225 

£1O0aW<O88B 2.73 208 

£600-49099 I 221 123 



53* 

<35 

6-Mffl 

MW 

Tta MuuwAA FtyacmA PL! IS 

33* | 



333 

6-Mi 

eihaxASH — 

_(A?B 

330 1 


bade ndu hcina I 

Ota mud d a a pMdta l * L . „ 

race ■ pi. VraprataH teal Urn’, be Or fra ppe y 
e wUcb tatane u entad bi «■ exam 


■ stoun nmmss qmm) ebzaoo par c 


Sop 0 7796 
Doc 0 7795 
Mm 0.7B45 


57810 

+50019 

0.7840 

0.7775 

4278 

20.B26 

Sap 

19684 

19780 

+50092 

19780 

19864 

07829 

+0.0016 

0.7858 

57770 

13233 

33,128 

Dec 

19018 

19712 

+50098 

1.5732 

19818 

57840 


0.7845 

57830 

28 

305 

Mar 

19850 

19880 

+50072 

19680 

19650 


2,164 21853 

4^424 27.121 

21 212 


Striw 

Price 

Sep 

- CAULS - 
Oct 

Nov 

Sep 

— PUTS ~ 
Oct 

Nov 

1900 

894 

822 

823 

- 

- 

507 

1928 

694 

595 

690 

- 

503 

529 

1900 

332 

391 

490 

- 


0.77 

197S 

097 

194 

2.43 

- 

598 

1.83 

1900 

■ 

0.72 

129 

1.47 

233 

2.92 

1925 

- 

020 

560 

392 

425 

4.71 


[rii| 


Commodities on the move - 

Iff St ■ 


Time to speculate? 

mHQ 


Call Philip O’Neill 

MENBM SFA 


TO: 071-329 3333 or Fax 071-329 3919 


EWORLD INTEREST RATES 


MONEY RATES 

September 10 Ow One Three Six One Lon*. 

night mo nth mffw mlhs yeer inter. 

Belgium 
week ago 


■ THBCT MOUTH HWOMHK PUTUWES (UFFET OMIm pobita af 100*16 


Dto. 

rate 


Ropo 

rate 


week ago 
Orernurny 
woe+ ago 
Ireland 
week ago 

week ago 
Nedierianda 
wonk ogo 
Sw tli e ria nd 
w* ogo 
US 

week ago 


week ago 



5ft 

5ft 

so 

6% 

7.40 

490 

- 


Si 

5Vfr 

5»ta 

6ft 

7. 40 

490 



5ft 

Vrk 

S3 

&H 

5.00 

- 

8.75 



sv* 

53 

6H 

5.00 

- 

6-7S 


590 

5.02 

5.128 

553 

6.00 

490 

495 


5.00 

495 

5.10 

5.46 

6.00 

490 

495 

4a 

SH: 

64 

64 

7H 

- 

- 



5Hr 

64 

64 

7H 

— 

- 



8VL 

8 

9* 

10*4 

- 

7.60 

8.45 


8'i 

88 

SS 

1(M 

- 

7.50 

546 


5.01 

507 

524 

5.63 

- 

525 

- 


5.01 

592 

5.16 

5.49 

- 

525 

— 


3=te 

4 

44 

4*4 

6.625 

390 

- 



44 

4»» 

4K 

5625 

390 



4a 

5 

SH 

58 

- 

490 

- 

*a 

43 

43 

5 1 * 

Sfe 

- 

490 

~ 



2to 


2U 

- 

1.75 


rvk 

2ft 

2»a 

aft 

20 

“ 

1.75 

" 


■ S UBOR FT LondOn 
Intertank Rxtag 
wook ago 
US DoBar CDs 
wet* ago 
SDR United Da 

101 rnv+rx b Sto 01 iim oecn -wWng 

rawn *wn lAJ ** Tnlwa. Bnlws Ofvi N^honal Wllllfttlt. 

fi and 3» Ltatod Otoxraa » 

EURO CURRENCY INTEREST RATES 


4* 

5ft 

5ft 

53 

- 

" 

- 

4!a 

5 

54 

53 

“ 


“ 

4.65 

4.82 

5.12 

5.88 

“ 

- 

“ 

4 65 

4.83 

5.12 

5.67 

“ 


“ 

3fa 

34 

3*. 

4 

“ 

" 

“ 

3*5 

34 

344 

4 

“ 

- 

“ 



Open 

Sett price 

Change 

High 

Low 

Eat. vol 

Open Em. 

Sep 

9494 

9490 

-094 

9495 

9489 

16780 

118981 

Dae 



-097 

94.77 

9497 

42477 

189137 




-510 

9427 

9422 

39901 

172232 


vri 


-0.13 

9398 

8390 

28245 


l.l , ' • „ , .h'i ,'1 SZZS CSZZ Uii^l-'^TZEa 


Open 

Srit price 

Change 

High 

Low 

Eat ved 

□pen teL 

Sep 

9120 

9120 

- 

9127 

9128 

2907 

17404 

Dec 

9517 

9097 

-096 

9024 

9094 

8905 

32078 

Mar 

8BM 

S9.38 

-a i2 

8554 

8925 

m M 

18768 

Jim 

8997 

8894 

-0.13 

89.10 

8892 

891 

14849 

11.1, i.Mr-i.w,, 


tto»n 

Sett price 

Change 

HSh 

Low 

EaL vol 

Open ML 

Sep 

9595 

95.96 

. 

9598 

9594 

2143 

13711 

Dec 

9594 

9590 

-508 

95.64 

9592 

5000 

21559 

Mar 

8520 

95.14 

-097 

9520 

85.14 

1019 

12403 

Jun 

94. BO 

94.76 

-513 

9490 

9472 

451 

6130 

1 1.. . --I Mil l 



Ctoran 

Sett price 

Change 


Low 

EsL vri 

Open ire 

Sep 

9496 

8494 

-092 

9407 

9493 

901 

7689 

Dec 

93.46 

9328 

-097 

83.48 

9327 

2208 

7557 

Mar 

8295 

9294 

-507 

9295 

0294 

515 

5045 

Am 

92.52 

92.43 

■505 

9222 

92.42 

342 

2307 


Short 


7 days 
nMfco 


One 

month 


Three Six 
mordhs motiUa 


One 

ywr 


’ LITE knees traded re ATT 


■ THR— mOMTH BURODOtAAR (IMM) Sim points at 1QOW 


DM 

Mar 


+ane 

irijna 

Mm 

ran: 


4i: • ail 
5'4 - S* 
5 ■ 4% 

5»*. • ai: 
*J| -5»i 


b - 

ft - Sh 

b -41 

5-^a 
Si'it - S|\ 


iEk. I*" 1 . ' 9/ ' ?■ 


>B30ia 


7«: - 7,V 
5*9 - * Y 

Jb - 3** 
ft • S,». 


- 7ft 
5.'. - 412 
3*9 - 3 1 ; 

5*4 * 5lfl 


411-411 4 i 

9 7»j 6*9 - 7*9 

2.» - - 1 * " 

3?, - ft ft ‘ 3^ 


5«a-5 

tt ■ ft 

5-4% 

S'. - *li 
V. ■ 5, r , 
10 % - 9 % 
7% ■ 7% 
513 - 511 
3% -3% 
5ii - Sft 

4% -4% 

6%-S% 

SA - -’2 

4.1-4A 

| van. othMX 


5*2-5% 
6 % - 8*2 
SA - J 1Z 
5% - 5 
5(1 - SA 
11 % 

7% 

5H - 551 
4-3% 

5A - SA 

5A-4U 

8% -8*7 

2U-21S 
4% -4% 


5% -S% 
r,*. - 7A 
5% - 5% 
5% -5% 
6,'. ■ 5H 
10*2 11% - 
% 8 % - 8 % 
6% -6% 
4ft - 4ft 
5ii • SH 
SA - ft 

9 % - 8 % 

2W-2B 

5ft -5 h 


bA - eft 
712 - 7A 
5%-5% 
5J1 • 5A 
W - BA 
11 % - 10 % 
9-8% 
7ft - 7ft 
4% -4% 
8%-«% 
6-5% 
10, T a • 10ft 
2% - 2(i 
5H - 5« 


Open 

Latex 

Change 

High 

Low 

9420 

9492 

•503 

9499 

9492 

9421 

94.24 

-506 

9421 

9422 

9395 

S3. 85 

-509 

naox 

8584 

SUHY BILL PUTURSS (IMM) Sim per 100% 

9486 

9480 

■506 

8488 

9420 

9444 

9437 

-009 

94.44 

9427 

9411 

9404 

•502 

94.11 

9404 


Eat vd Goan M. 

38,135 310647 

67.768 509266 

57.017 390 JOB 


DM 

Mar 

Jun 


AJ Open rarest flgs. an tar pradom dm 
■ B i mOMABK DPT10IIS (UFFg CBdlm porta at 1009k 


821 11.409 

74 5J40 

488 489 


wo days' now* 


rafc*, atulMinoUa Do*» M 
, HnwTr ra mMa»(MAnF) Part* Interba nk oWerod ram 

■--7*- S £ -r 

SS S3 5SJ SS SS Wt 

S.S SS -o® ® iJ 9105 ““ 


Stria* 

Pries 

Sep 

Oct 

CALLS - 
NOV 

Dec 

Sep 

Oa 

PUTS — 
Nov 

0475 

518 

505 

506 

511 

501 

513 

aie 

9600 

501 

501 

502 

a04 

an 

034 

035 

8525 

0 

0 

0 

502 

035 

558 

038 


DM 

0.19 

037 

0.80 


Era. ML lira, eras 0250 Pub atm. Piwtous d*y» opsn ire, cefls 26S«i Pus 3iss«6 
■ EURO SWISS HttMC OPTIOMS (LFFEJ SB 1 im points Of 10096 


Open ire. 

38,877 

Strira 

Price 

Sap 

- CALLS - 
Dec 

Mar 

Sep 

— PUTS ” 
Dee 

Mar 

48.799 

9675 

521 

504 

505 

0 

0-23 

0.66 

30.209 

9800 

031 

0 

nrra 

505 

0.44 

088 

27.201 

9826 

0 

0 

501 

529 

569 

1.12 


Bh. vdC totok Cdts 0 Ms 0. Prawaus day's gpan ire. Cafe 32B5 Pus irss 


«vm Sedpdce Chongo 


IM95 
94 31 


94 9? 

93.82 

9J47 


-0.04 

-0.08 

-013 

41.13 


High 

Low 

Eat. vol 

Open tet. 

84.86 

9495 

313 

3370 

9431 

9429 

235 

2130 


- 

0 

1364 


. 

0 

283 


Pravkxn day’s «U Cafe N/A Puts WA. Piwr. days opsn ire, Cdb NTA Puts K/A 


LONDON HONEY RATES 

Sep IB Over- 7 days One 

night notice month 


Three Six 
months month* 


One 

year 


btertrank Storing 7% - 4% 5ft - *51 5ft - 5ft Sil - 5ft 6ft - 6% 7ft - 7% 

Storing CDs - - 5ft - 5% 5(i - 5% 8ft - 6ft 7% - 7 

Traesuy BBS - - 5ft - 5ft 5% - 5ft 

Bank BBS - Sft • Sft 5% - 5ft 8 - 5% 

Local authority dap*. 4iS-4» 4fl - 4fi 5ft - 5ft 5ft - 5ft 8ft - 5fi 7ft - 6tJ 

Diaoouit Market daps 8% - 4% 4% - 4% 


UK deamg baric base lending rata 5% per cent from September 12, 1994 
tip to 1 1-3 3-fl M 

months morihs 


9-12 

months 


3% 


3*2 


Cert* of Tax dap. (El 00 JOO) 1*2 4 3% 

Cans ol Tax dap. rettar 2100000 la i l jpr^ boposiB ■totam ter cadi Vpc. 

Am. tender rata et daesunt 5oe<cpc. ECQD bad rats Sag. Export Ftaoica Mata up day Aug 3t, 
1B94. Agraad rata lor period Sap 2*. IBS* » OB 2S, 1984. Setramra I A IB ELSSpc. RoterenM rata lor 
period .My 30, IBM ID Aog 31, 1904. Schamea IV iV &078pc. Romoa Kouea Bare ttana 5%pc tram 
Sap 1.1994 

■ TWEE MONTH STEMJNQ IVTURBS (LJFFE) £500.000 pdrrta oflOOfe^ 


Sep 
Dec 
Mar 
Jun 

Traded re ACT. A1 Open norms Ogx. era tor tmvuue day. 

■ SHORT STERLING OPTIONS (LJFFE) £500.000 potots Ql 100% 


Open 

Sett price 

Change 

Hflh 

Low 

Eat vri 

□pen InL 

94.18 

9418 

-501 

9419 

94.15 

7535 

75102 

93.27 

8520 

-507 

0321 

9519 

30545 

147064 

92.43 

8227 

-51B 

82.46 

row 

1B1G1 

80104 

91-88 

Bias 

-517 

91 JOB 

81 37 

7190 

56902 


Strike 

Price 

Sep 

- CAULS - 
Dec 

Mar 

Sep 

- PUTS 

Dec Mar 

9400 

517 

502 

001 

am 

582 1.74 

9426 

031 

0 

0 

0.10 

1.05 1.88 

8450 

0 

a 

0 

534 

1.30 523 

Ebl Vri. tatad. Ct*s 16SQ2 Pun 11 BEX Pieubia dmfo open 

tat. Crib 351300 PUB 311901 


BASE LENDING RATES 


Adorn & Company — 5.75 

ASed Trust Bank „5J5 

AS Baric 6.75 

•HerayAretoadrar ... — 5.75 

BartabBaracta 5.75 

Bbn» BBsd Vfa&aya^- 6J5 
Bank afCypnn 5.75 

BorfcoltretarcJ 5J5 

Barit olbicfia -....675 

Ebrnk at Scrilmd -5.75 

Bartbry* Baric 575 

MBkriMdEast...* 525 
Btoim9iiphv&0>UdJL75 
CLBankNodattand... 575 

CttankNA -575 

caydeedaia Bar* 575 

The OocpreiAve Barit 575 

Coulta 6 Co — 575 

CredbLyomris *...575 

Cyprus PoputsrBar* -57S 


% 

□mean Laurie 575 

Bate* Bank United- 575 
financial & Gen Bank... 55 
•Robert Fleming 8 Qj .. 5.75 

Qrotank 6.73 

•OunronUtion 5.75 

Hri* Boric AG ^Jnch. 576 

Bll am hm o Baric 575 

Heritable 8 Gen ton Bk. 5.73 

BWSamuoL — 575 

C-HooreBOs -575 

Hongkong & ShanghaL 525 
Jriten Hodge Baric — 575 
•LaopoH Jo3B^i4Sons5.75 

Lloyds Bank 575 

Meghnj Bank Ltd 575 

IMand Baric 575 

‘Mount Banking 6 

NriWasbrindar - are 

•Roa Brothers 575 


•RwUr^io Guarantee 
Copcrrikm UmBad is no 
mgeradatadte 
abaridngkisttuten. 8 
Royal Bk at Seodana _ 175 
BSmrth 6 «HBn*n Sbos . 575 

TSB - 5.75 

•UntedBkot Kuwait — 575 
Urtiy Trust Bank Pto — 575 

Western Trust —575 

VAVtBawayLafcSwr 575 

YorkEfara Bank 575 

• Memtrars of London 
Investment Banking 
A&oeMtan 

• kit 


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FINANCIAL TIMES WEEKEND SEPTEMBER 17/SEPTEMBER IS 1994 





Details ol business done shown below have been taken with consent 
from last Thursday's Stock Exchange Official list and should not be 
reproduced without permission. 

Details relate to those soctarbes not included *» the FT Share Information 
Services. 

Unless otherwise Indicated prices are In pence. The prices are those at 
which the business was done in the 24 houre up to 5 pm on Thursday and 
settled through the Stock Exchange Talisman system, they are not in order of 
execution but in ascending order which denotes the day's highest and krwost 

dealings. 

For those securities In which no business was recorded in Thursday’s 
Official List the latest recorded business In the four previous days b given 
with the relevant date. 

Rule 2.1 (aKv) stocks are not regulated by the International Stock 
Exchange of the United Kingdom and the Reptfoflc of Ireland Lid. 

t Bargains at special prices. 4> Bargains done the previous day. 

Nation* W wliieiaw Bank PLC Tl4% Und- 
SubNe ciuooecn* to PrQRog - eke* 3 
(125*94) 

National W a st m ta a ter Bank PLC 114 % Und- 
SuOMes ClOOOfCnv In PrflBr - Cl 03 
(138*90 

IktkmMa BuacSng SocMy 1 1*4% Nts 1085 
(Hr CS00CS1 00000) - Cl 0X05 sir (88*90 
Natatwtoe BuMkfl SocMy M%% Nta 1887 
(Br CSOOO& 10000Q - C106H 
Nodormfttia Bdkfing SocMy Zero Cpn Nts 
7938 (Br C Van - £70% <9S*00 
New Zealand 84% Bd* 

HWXBrCIOOOMOOOO) - £101>S .6 
(128*94) 

Norsk Hydro AS 3%« Nta 2003 (Br 
Cl 000410000) - £994 p?S«90 
Norway PGngttam ol) 7%% Nts 1938 ®r SC 
Veil - SC&6. 05 |13S*94) 


British Funds, etc 


Tmoswy 13%% StK 2000/03 • £1224 
Guaranteed Export Rnanca Carp PLC 124% 
QU in SIX 2Q02(R#g) - £1184* 
Guaranteed Export Rnanca Ccsp PLC 124% 
Ota Ui SO. 2002(8rC1 000041000001 - 

£11844 

Corporation end County 
Stocks 

BrtsUlCey oQ 11>zH Rea Sth 2008 - C11C4 
(l3Se9<) 

Saflard (Cay off 7% Ln Stk 2019{Rea)(F/P) - 

£784 

UK Public Boards 

OyOeport Ld 3% tad Stt - £29|I3S*30 
OvOaport Ld 444 in* Stk - £39 |13S*94) 

Forth Ports Authority 3%% FmcM Debt - 
£384 

Port ol London Authority 3% Port of London 
A Stk 28«9 - £754 

Foreign Stocks, Bonds, etc- 
(coupons payable in London) 

Abbey Notional Starling Capital PLC8%* 
Stexxd Gad Bds MKMfflriVarei - £82% 
Abbey NotioRd Heasuy S««va RX 8H Qtd 
Nte 1999(»C1000.1000tU00000) - CB7H 
H3SeS4) 

Abboy National Traaauy Servs PLC 7%H 
GM Nta 1996 (Hr C VH) - £956 
Abbey Notional Treesuy Sera PLC 8% Gtd 
Bda 2003 (Br C Vta) - £904 
Abbey National Traaauy Sens PLC 10*2% 
Obi Nta 1987 (Br CVsrt - £10*4 
Acer In co rpor ate d 4% Bda 2001<&S10000) - 
52754 270277Z78 2784 280 281 4 282 
284 285 

Alncim Doretopment Bonk 11%% Bds 2001 - 
£110% (98*90 

BP America Inc 94% Otd Nts 1B9B (Br C 
Var) - £101 4 <14Sa84) 

Barclays Bank PLC X5% Nts 2004<8r£Vw1- 
OUSJ-CB04 

Barclays SwA PLC 94% Bds 1999 (Br 
FR1 000041000001 ■ FR1046 (14Sa94) 
Bsrdays Bank PLC 104% Sen Sub Bds 
1997(BfC1OOO4ia0Oa) - Cl 034 4 
Barclays Bw* PLC 124% Senkr SUxsd 
Bdl 1997(BrfVar} - £110 
Barings PLC 94% Perp Subord Nta (BtCVari- 
ousl - CB24 (14S«00 
Batons B.V.2sbras 22/UW(Br £10000) - 
B»*2(13SaW) 

Bradford & Btn0ey BUUkig SadetyCcAarad 
FttgRtaNts 2003(Reg MtatiCIOOq) - £944 

(13SeS4| 

BritHh Airways PLC 04% Ms 
19V7(BrtM 000610000) ■ Cl 01 4 
British Airways PLC 10% Bda 
1998(Br£1 000610000} - £1024 (13S«00 
Blltah Oas PLC 7%% Nts 1997 (Br £ VM - 
£39 (13SsB0 

Brush Gw PIC 74% Bda 2000 £r £ Vtsr) • 
£944 

ftwsh Gw PLC 104% Bds 2001 (Br 
£1000.100006100000) - £1054 (14&04) 
British Gw PLC 84% Bds 2003 (Br C V*l) - 
£94 (98*00 

aiflsh Gw PLC 8%% BdS 2008 (Br £ 1W) - 
£95.6125 

Srittsh Lend Cb RC T24% Bds 2018 
(Br£1 000051 00000) - £1194 
Brtttah Tsta uunsnu fS ca Uons PLC Zero Cpn 
Bds 2D00(Bf£ia00&l0a00) - GB24 (9SaS4) 
Braun TataeommuScarions PLC 74% Bda 
2003 pr £ Vail - EB7& 

British TetoctxTXTturXcntions PLC 84% Bds 
2020(B(£Vtas) - £9*4 

&ttish TfSacomnurScaBorts PLC 124% Bds 

2000 - £l19ti <148*90 

Bioirah Central CnXtalpDfnay) Ld 94% Crw 
Cap Bds 2006 (Reg £1000} - £152 
Bunneri Central CapnaKJereey) Lb 94% Cnv 
Cap Btta 2C06fBr&00055000C) - ei504 1 
Commercial Union PLC 104% Old Bds 2002 
|Br£V*)-E1Q5>7 09*00 
Ds8y Mol 6 Goners* Trust PLC 84% Exdi 
bob 2005 (DC10006600CI - £1994 
(l3SeO0 

OxwnarKKInpilom ofl 84% Nta 1998 (Br £ 

Vai) - £924 34 4 

Q( Enterprise Finance PLC 84% Gtd Exch 
Bds 2008 (Reg £5000) - £994 (95*90 
Bi ta i |a»a a 08 PLC 104% Nta 1986 (Br 
£50006100000) - £1034 (12Se94) 

Far Eastern Deportment Stores Ld 3% Bds 
200 1 (Reg Integral miitl SI 000) ■ 587 
Far Eastern Tabs Ld 4% Bds 
20oamiaooq - oi64> 

FMandfReptiUc a*) 94% Nta 1997 (BrCVar) 

- £103 (133*90 
FMasKRspubBccri) 104% Bds 

2O08(Br£1 000610000) - El 034 <14S*90 
Forts PLC 84% Bda 2003 (Br £ Vat) - CB24 

34 

Fu* Bank Id 1%% Cnv Bds 20020*5000)- 
5108 (13Se94) 

Guaranteod Export Ftannce Carp PLC 74% 
Gtd Nte 1888 (BrE Vert- £9*41125*04) 
Guarsmed Export Finance Cap PLC 94% 
Gtd Bds 2008 (Br E Vte) ■ £39(2* 100* 
Gu a ran t ee d Export Fkianco Carp PLC Gtd 
Zsro Cpn Bds 2OOO0K1 00006 100000} • 

£58 4 |l3Se90) 

Gutaness PLC 74% Nts 1997 (8r E Vai} - 
rae-4 

HaMn Bidding Scanty 64% Bds 2004 
PCI 000.10000.1000001 - £8X83 

H*Kn Bu*»ig Society 74% Nts 1998 (Br E 
Van - £954 |14Se94) 

Hattn Buldng Soctety 64% Nta 
i9W(BrCVai3l ■ £964 
nontax BuSdmp Society 104% Nta 
1997(BrCiQO0S1000tn - CKM’r (9Se»4) 
Hanson PLC 84% Cnv Subonl 2008 {» 

CVoil - £1084 

Hanson PLC 104% Bda 1997 (Br War) ■ 
£103(1 

Hannon Trust PLC 10% Bds 2008 <B>C500a 

- £99,’. .1125 i5 

Hteftson Capital Ld 71 j Cnv Cop Bda 2004 
P»»gl - 1294 H2S«941 
HydrtH3uc0ec 1 1 J5 % cWm Sore HV 17/4/ 

2001 (Br CVor| ■ £1064 H3S«941 
Imoercs Chetrscd IndusDias PLC 94% Bds 

20O5fBr£ 1000810000) - £1004 
Ma-Amencan DevOaptmn] Bank 11 4% 

Bda 1995(Br £50001 - E1Q3J5 |12Se94j 
traemawnai Bank r 9 Rec 6 Oev 94% Bds 

• 007 (BrtSOOO) ■ £1014 (12S0941 
briwnaOoas Bank to Bee * Dev 10 4% Nts 

1W9 (BrCSOQO) - noa4 
SaMRoputnc all 54% Nts 1998 (Br $ Vo) - 
SW -is |i4Se04i 

itaWReputnc 09 ’04% Bds 2014 
(BrO 00006500001 - Cl 05,'. 

Japan Doyetapment Bark 7% Gld Bda 2000 
iBr C Van £914 2 

haraol Electric P ower Co Inc 74% N» 1998 
(Br £ Vsr) - QM4 54 

Kyusnu Boctrv Puvror Co he 8% Nta 1997 
(Br E van - £98 

Ladbrcke Group FtiunmJersetfLd 9% Cnv 
COP Bds 2005 (BrCS00a6 1000001 - C98>2 
(12Se94) 

Land Sacamea PLC 94% Bds 
200 7(Br£1 0006100001 - £97 
Laid Secunsea PLC 64% Cnv Bds 

• 0Q7(Br£1000> - £99 (12So94) 

land Socundes PLC 94% Cm Bds 2004 
(BrfSOOOlSOOOOl ■ ElOOlj 9 
Lasmo PLC 94% Nts 1999 iBr E Van - £97 
Leeds Pumawl BuOdtag SocMy 74% Nta 
1997(BrWor) - £963 |13Se04] 

Lowb (John) PLC 104% Bds 2014 
(BrttoooMiaoaoot - ciosU pK«SJ) 

Uoyitt Bonk PLC .'4% Suoad Bds 
200<(BrWanoua1 ■ £84 4 ,*« £ |l4Se84i 
Uovea Bare PLC Subaru Frtg Rki NWBrC 
Vars 1 - £10022 l«U (8Se»t) 

London BocWrty PLC 0% Bds 2003 (O C 

Van - £924 |9Se04| 

MW PLC 104% Bdl 
MtOtBrC 1000810000) - G99B2S (l3SeS4) 
Maria 6 Spencer Finance PLC 74% GW No 
1988 & E Ve| - CW (9Ga»>) 
k k crc wk Vsem a tlonBl lx &Sft Bds 
2O01(BrSl000(9 • SI 10 1104 (14Se«) 
National 6 Provincial BhJg SocMy 84% Nts 
1998 (Br £ Van - C0?4 
National WeehnkeMr Bnn<i PLC 11t>% 

Suberd Ms 2001 A rVari - £1)645 
<99a»*1 


Norway OOngdom of) 8^75% Nta 2003 ®r 
SC Varl - SCH54 (13Se84) 

OsWa Goo Co Ld 6125% Bds 2003 (Br C 
Var) - £904 (14Se84) 

PoworGan PLC 84% Bds 2003 Br 
£100006100000) - £95A 
RerXand CapOsI PLC 74% Cm Bds 
20Q2(BrC1 000610000) - £1014 
Robert Hemlng InB Fhtance Ld 94% Perp 
Suberd Gtd Nta (Br £ Varl - £834 (138034) 
RomscMda Continuation F1n(CJ}LdB% Perp 
Subortt GM Nta (BrtVarious* - £80 4 
Royal kisurance Hdgi PLC 94% Subord 
Bda 2003 (Br £ Vari - £97 028084) 
SatasburyW) PLC 124% Nta 
l995CBr£iaO(U10000) - £102-6 JU JA 
(12Se*M) 

Satasbury U JfChanmi IStonthUd 
B4%CrrvCasBda 2005(Br CS000810000Q - 
£138 7 

Scotland IntamaOaml FTnsnce BV 144% 
Rud/FFN 1B96(BrS1000) - 5884 99J 
Sough Estates PLC 1 <4% Bds 2012 (Br £ 
Var) - £109.175 (14So94) 

SmMnMtne Beectam C«|Xtsl PLC 74% Gtd 
Nta 1998 (Br £ Vw) - £954 
Sodete Ganerata 7^75% Perp Subord Ms 
0rCVta)-£854* 

Svoisk ExpratkradK AB 8375% Ms 
1996(Br5SOOO&IOOOOQ - 5102.65 flSSoftfl 
awodenpQngdom oil 11 4% Bda 1QB5(Br 
£5000} - £102 (12Se94) 

Tarmac Rnanca (Jersey) id 94% Cm Cap 
Bda 2008 (Reg Cl 000) - £884 (14SaM) 
Tormao Fkiance (Jersey) Ld 94% Cm Cap 
Bda 8008pr£B0006al100H -C1Q04 
CI2S*M) 

Tata a l>« H nonce PLC 8% Gld Bds 

1989(a£1 00004100000) - £94^ (13Bo94) 
Teaoo CapB* Ld B% Cm Cap Bda 2005*tag 
£1} - £118 4 4 4 7 .94 8 
Thames Watsr R.C 94% CnvSuhradBds 
2006ffr£sa00as0000) ■ £127 
3/ Group PLC 1>4% GMSds 19M(8r 

ciaooaioooa - £t064 H2S4S4) 

9 bttnaUan* BV 74% Gtd Bds 2003 (Br £ 
Van- £884 (133^4) 

Tokyo EJacstc Power Co me 74% Nta 1998 
(Br £ Vsri - E94B 4 

Tokyo Bsctric Power CO he 11% Ms 2001 

(Br Eioaaiaooo 6 looooo) - cioe 

(1480841 

Treasury Corporation of Victoria 84% Old 
Bds 2003 (Br £ Vo) - E94J3 (145oB4) 

Tung Ha SM enterprise Carp 4% Bds 

2001 (Bril 0000) - 5112 

U-Mhg Marine Transport Cupordbanl4% 
Bds 2001 (Rag n 6M 5100Q - 5894 1004 
Untom PLC 74% Nta 188B (& £ Vsi) - 
£962(138094) 

Vlctartan Ptae A0» Hn Agency 84% Gtd 
Bda 1990(B^Vta% - £1014 
Wnrtn* 5 j(S-tl) Group n£ 9% Perp Subord 
Nta (RapNtaBrtJ - £834 (13SeB4) 

Wsiah Water IMUoa Rnanca PLC 74% GW 
Bda 2004 {BlO/Mous} - £6445* .55* 4* 
Leads P ermanent Buldng Sadaty El 00m 
Rtg Rta Ms June 19B7(Br£1 00000) - 
QB.755 (98094) 

SswdarOOngdam a*) EflOOm 74% Nta 3/12/ 
07 -£97 

S wadertKhgdcm eft C2SGn 7% h w tnxnenta 
23/12/98 - £B34 4 (OSeflfl 
Swedengongdofn at) CJSOm 74% Bds 28/7/ 
2000 - £93 7 a (9Safl4) 

SwadangOnodom at) SCSOOm 8% Defat 
habwnenta 12/5/2003 - 5C922 (03o9* 

Sterling Issues by Overseas 
Borrowers 

Bank ol Greece 104% Ln Sft 20100*0 - 
£98 

Bad( o( Graeco 104% Ln 81k 2010(Bl) • £95 
Credt Fonder Do France 
104%G«SwLnSti<2011.iai3,14fftart - 
£1114 4(135004) 

DwaiwMhktgdBm aQ 13% Ln 9dr 2005 - 
£1244 46 

European hvootmont Bank B% Ld S8<2001 

(Rag} - £994 

Etaopaan hvoatmant Bark 0% Ld Stk 2001 
fflrfSOOO} • £99 Ji 4 (135004) 

European hvastmsri Bank 94% Ln Stk 
2009 -£1032875 A A 
European hveetmenr Bor* 104% Ln SIX 
2004(Reg) - £1071] 1} (14S0S4) 

Europwm krvastment Bank 11% Ln Stk 
2OQ20tog) - £1094* 

Intemnto i* Bank far Rec 6 Bar 112% Ln 
Stk 2003 -E113A 

Now Zealand 114 % Stk 2008(Rag - £114 4 
H2S094 

Sptar^lQngdam oQ 11 4% Ln Sfc 201<XR^ - 
£118% (1 4Sa94) 

Swaden(Kingdom d) 94% Ui Stk Z014(Rag) 
£102 

Listed Companies(exchjding 
Investment Trusts) 

ASF hvestmanh PLC 84% Una Ln SA 87/ 

2002 50p - 37 (13S094) 

ABF tmasonanta PLC 74% Urn Ui Stk 87/ 
2002 5Qp - 40 (13S*04) 

APV PLC 3.15% Cum Prf CT - 48 (I4S894) 
ASH Cspurt FlnancekJanMriLd 94% Cm 
Coo Bda 2006 (Rag Unto HXM - C7B4 
(130094) 

Adtrurt AOaa Fund Shi or NPVWtawi ftotto- 
10) - £0.755 (14Sa94) 

Aatna Mtaaywm Grawm FuncbCaymonlLd 
Old 5001 - 5124 13 134 134 134 
Alexon Group PLC 62Sp (Net) Cm Cum Rad 
Prf lOp • 4648 47 7 H3Sa»n 
Ad ad London Prapsrtiaa PLC 104% lot Mtg 
Deo 9tk 2025 - £1074 (14SO04) 

AlSad-Lyans PLC 5>z% Cwn Pit £l . 57 
(13Sa94) 

Adad-Lyura PLC 74% Clan Pri Cl -77 
(13Sa94) 

MIWd-Lyana PLC 54% Uns Ln 9tk - £51 4 
|12Sa94) 

Anad-Lyans PLC 64% Una Ln Sh - £62 34 

H4Se04) 

AOetU-yans PLC 74* URs Ln Stk • £74 
I14SO04) 

Ailed -Lverei PLC 74% Una Ln Stk *r98 - 

£94 (I49<A4) 

Afted-Lyuna Fhonckri Sorvlces PLC84% 
GtdCm.0ubaRtBds2OO8 RegMutatiooo - 
Ci104l>3Se94| 

AMs PLC 65% Cnv Cum Non-Vtg Red Prf 
£1 • 72 4 (12So94) 

American Brands he 3na at Com Stk 53.125 
-5347, 

Antawwa Sykas Croup PLC Cm Prf SOp - 41 
Water PLC S4% Indax-Lvkad LnStk 
2008(62578%) - £1324 (L2SeC4) 

Angto Eastern Pton a oon s PLC Wgnanta a 
sub to Ord- 258 

Angtd-Eastorn Pl o r a at to a PLC 124* Uns 
Ln Stk 95f99 - C99 100 (14SaM) 

Angtoa* Ld N Otd RO0OO1 • £184 
(I38a9^ 

Armora Trust PLC 104% Uns In Stk 91/96 - 
Cl 00 (I2 So9*1 

Attwoods PLC ADR (5:1i - 584 
Amtdods (Rnanoe) nv 84p Gld Rad Cm M 
span 

Automated SeaatlyiHdgy) PLC 5% Cnv Cum 
Bod Pr* Cl - 72 (14SS94) 

AutomahKl SecurttydOdg e ) PLC 6% Cm Cum 
Rod Prf Cl -58 

BAT Industries PLC ADR (2:1) - £63* 
63142* 63344* 

BET PLC ADR (4:11 - 56.48978 
BM QrauO PLC 4 8p (Nad Cm CUm Red Pit 
MO - 854 8 7 


FT-SE ACTUARIES INDICES 

The FT-SE 100. FT-SE Mid 250 and FT-SE Actuates 350 irtdeas and tfw 
FT-SE Actuaries Indu3tr>' Baskets are calculated by The IntematJonal 
Slock Exchange of the United Kingdom and Republic erf Ireland Limited. 
O The international Slock Exchange of the United Kingdom and Ffepubfic 
of Ireland Limited 1394. All rights reserved. 

The FT-SE Actuaries All-Share Index la calculated by The Rnandd 
Times United In contunctkxi with the institute of Actuaries and the 
Faculty of Actuaries. © The Financial Times Limited 1394. Ail rights 

reserved- 

The FT-SE 100. FT-SE Mid 250 and FT-SE Actuaries 350 indices, the 
FT-SE Actuaries Industry Baskets and the FT-SE Actuates Alt-Share 
Index are members of the FT-SE Actuates Share Indices series which 
ere calculated in accordance with a standard set of ground mt»w 
established by The Financial Times Limited and London Stock Exchroge 
n conjunction with the institute of Actuaries and (he Faculty of Actuaries. 

■FT-SE” and ■FooMe" are pint trade marks and service marks of the 
London Stock Exchange and The Financial Tones Limited. 


BOG GraraJ W.C ADR (1:1) - $11 (9Se04) 
BOC Gnxu PLC 3£% Cum 2nd ftf£1 -51 
BOC Grem PLC 124% LktaLti 9k 2012/T7 
-£122 

8TP PLC 7-5p0U!) Cnv Ctan Rad Pit 10g - 
203 

Bin PLC ADR (Cl) - 320.9 
Bsmpton Proporty Qraup Ld 74% Una Ui 
&H491/9q-£90(SSaS4) 

Bmgkflk k —gb nato Ld Pig Red Prf SOJI - 

Si 42 (14S094) 

Banrar Hamas 01x9 PLC Ord lOp - 140 
BwdayaPLCADfl (Cl)- 5384 (13SOB4) 
Barclays Bark PLC 12% Una Cap Ui 98c 
2010- £115 (14SOB4) 

Bscbya Bare PLC is* Um Cap Ln S8c 
2002AJ7 - £1314 2 4 4 (14SOS4) 

Banian Giaip PLC 72Sp fU) Cm Rad Prf 
2Ep - 86 X6 4 

S«r**gs PLC 8% Cum 2nd RfB - 974 
(14SO04) 

Barings PLC 94% Nan-Cum Prf £1 - 113 
BmuMu Esiia raBon Ld CM RD.01 - 80 
Bvr&Wdtaca Arnold Trud R£ On) 2Sp • 
520 

Ban PLC ADR (2:1) . 517^*99417 f14Sa94) 
Ban PLC 10%% Das BDc 2016 - £1104 
(148aB0 

BWS PLC 44% Una Ld Stk 82/97 - EH7 4 
(148004) 

Ban PLC 7%* Uno LnSrit 9ZJST - £85 6 
(148004) 

Ban hrn uB t n w r it s PLC 7%% Una Ln SJk 92/ 
97 - £85* 

Btewsy PLC 9^% Can Rad Prf 2014 £1 - 
106 74 (138004) 

Baratan Hkfga PLC Sp - 47 
Bargasen d-y AS *B* Non Vlg Sha NK2Ji - 
NK155B4 

Bkmnghom Mktatarae Buftfng Soc 9%% 
Perm M Baring 8ha £1000 - £854 8 
Oacfcwaod Hodga PLC 8% Cum Rad Prf £i 
-38 

Bkta Ctota industrito PLC ADR (1:1) - UM 
Sue Onto tadustrlw PLC 6%% 2nd Deb Sdi 
1084/2009 - £BB4 t12Sa94 
Boots Co PLC ADR pnj-518% (14S«94) 
Bradfexd 6 9ngtay Brealng Sodetyll’s* 
Pwm to Bearing Shs £10000 - Ci 09% % 
Bradtod 6 Slnglay BukEnc Sodatyl3% 

Pawn tat B e arin g Sha Cl 0000 - £120% 1 ** 
(12Se0* 

Brent ta ta ma dono* RjC 9% Cum Rad Prf £1 
- 88)2 74 048090 

Efeant Water Group f\C WB to Sib ter Ord 
•1 048000 

Brant Watar Grays PLC 6S% 3rd Non-Cum 
Cm Ftad 2007/10 £1 -3 038*04) 

Bristol Wafer PLC B%% Cum tad Prf £1 - 
1044(148090 

Brtea* WOtor Kdgo PLC Old £1 - 085 
Brisk* Water HUga PLC 675% Cum Cm 
Red Pit 1998 Sbs £1 - 194 
Bristol 6 Wool SrecSng Society 13%% Pwm 
tat Beartag Shs £1000 - £1224 3 3 

Wtsmto Bvidlna Society 13% Psrni M 

Bearing Shs £1000 -£119 % 4 % 204 
atttari Atanys PLC AOR (ra f) - £3691 S 

80% 14 

B ritish A m eri ca n Tctaacco Co Ld 5% Cum Prf 
Stk £1 -SO 

BrtSsh-Amertean Tabwxo Co Ld 6% Bid 
Cum Prf SBt £1 -SB4 

Brtore Pwrekwn Co PLC 8% Cun 1st m £1 
-79 

Bnthh Patrataun Co PLC 9% Cun 2nd Prf 
£1-88(13Sa00 

British 8tort PLC ADR OOrf) - 523 3 J15 S 
A 

Broadstonsr Hdgs PLC 42% (Frrfy 8%) 

Cun Prf £1 -55(BSo04} 

BtireXAJ J & Co PLC Ord St» Bp - SB 80 
BikneriJTPJrtdgs PLC 8%% 2nd Cun Prf 
£1-103% 

BUmartHP JHdga I4C 94% Ctan fW £1 - 
1101 (13Se04) 

Bust PLC 7% Cm Uns Ln SOt 95/97 - £104 
5 

Bumoh Castiol PLC 6% Cun Is Rrl Sbc £1 
•62 039090 

Burnish Control PLC 7%% Cun Rad Prf £1 - 
70 

Bumoh Castro) PLC 8% Cun Prf £1 - 77 
(139000 

Burton Group PIC 8% Cm Uns Ln Stk 1988/ 
2001 - £83 

Bubs Unhg PLC 10% (Net) Cm Cun Rad 
Prf 1994 14) - 3% (13SO90 
CSC Ld EqUry ft/JO - 205 
Ctetanla Energy Co Inc Shs a* Cam Stir 
$00676 - £16981377 10977437 (BSe90 
Cambridga Wstar Co Cans Old SBr - 05100* 
Carclo Engkieartag 4twp PLC 104% Cun 
(tad Prf £1 - 102 

Cariteto Group PLC 4J8% (Nat) Rod Cm M 
1808 £1 -85(12Se00 
ObUob Cemmunkanus PLC ADR ftl) • 
527% 4(143000 

Carfion OunmuticUkas PIC 74% Cm 
Subord Bds 2007(Rag £5000) - £133 
(139090 

Caftan Commutations PLC 74% Cm 
Subord Bd9 2007(4- £5000) • £130 181 
(9SO00 

Cortex Corporation She af Com Stk SL2S - 
S2B4(9S«90 

Chdtwhwn & GkMcestar Bidd Soc 11%% 
Perm Inc Basing Sha £50000 - £112% 

CBy 9te Eobdes PLC 625% Cm CUn Rod 
ftfEI -6B(13So90 

CtayHthe PLC 8JS% Subud Cm Uns Ln Stk 
2000/01 - £97 (I3S094) 

Ctauaisnd Piaoe HoUnge PLC 9%% kid Dob 
Stk - £36 (12SO00 

Coastal Corporation Shs o* Com SBr SOJ3 V 
3-530% |9SaB0 

Coats Patons PLC 6%% Uns Ln SBt 2002/07 
-£78 

Coats S/Tyota PLC 4Jl% Cum Prf £1 -64 
033090 

CchanCAJ 4 Co PLC NoraV *A' Ord 20p - 
4ooao(i4So00 

Commordol LMan PLC 65% Cum Rtd Prf 
Cl -65 

G uut i wcm (Man PLC 8%% Cun kid Prf 
£1 -97% 8(138080 

Cammsrcta! IMan PLC 8%% Cum tin) Prf 
£1 - 1044 % 

Co-Oparatkre Bank PLC 9J5% Non-Cun kid 
Prf £1 -1»)4(13Sa00 
Cooper (Frodutcfc) PLC <L5p (NsQ Cm Rad 
CwnPtgPrf IOp-85 6 
CoutauMs PLC S4% Uns in SBr B4/BB • 

C94 

Counares PLC 7%% Itas Ln S8c 200008 - 
C884 (12So90 

Coumre i s Octtang Qrmds Ld 74% Cun 
Prf Stk £1 - 76 (128000 
Cowanby BufltSng Soctafy 12%% Perm tatar- 

oot Bwrtig S» £1000 - £1 1 1 4 2% 

Oa*y Mafl a Genere Trust PLC Or) 50p - 
C160& (14S«90 

Datgsty PLC 4*5% Cum Prf £1 - 88 
Dabonhama PLC 8%% 2nd Deb Stk 90/95 - 
£98% (I2SOS0 

Dobsnbsms PLC 7%% Uns Ln Stk 2002/07 - 
£82 5 IT«8s94) 

oast PLC 3.15% Cum 2M Prf £1 -43 
(12Se94) 

OovrSopmonl Sees ( k iv orfm ei to ) PLC 11% 

1st Mtg DOO Slh 20)0 - £984 (14Se04j 
Oowfusst PLC Ord lop - 100* 

Dominion Energy PLC Ora So • 124 (8Se04) 
Dover Corp Com Sbr 51 - 558 .7 
Dunlop RantaUans Ld 6% Cum Prf £1 -63 
(12Sae0 

Ewt Sumy Wstar PLC 10% Red Dsb 8tk 
97/99 • £101 (13SeB0 

Eefloso Binds RC Ord 5p • 84 %9 % 4 % 

% 

Ggofl ConseikMad Mnas Ld Ord Shs No Par 
Vrtua-20* 

0 Ora MWngtExplot a twn Co PLC On* lOp - 
560 

Boetron House PLC 7.5% Cm Cum Rea Prf 
Ci -iiO(i«Sa94i 

Eitmss PLC 62Sp(NaO Cm Cum Rad Prf Gp 

- 75 4 64 

BigOsh China Cloys PLC ADR (3:1) - 517% 
J8E4413 

ErktasortLALKrbstonafcBabalapBdSar 
BfftogJSKIO - SK40* 5 4 .7 0 7 7 .10 8 4 
9 ID 22 

Euro Otanoy S.CJL 8ha FRS (DsoosOory 
Rooapts) - 106 10 1 2 5 7 
Euo Disney S.CA. Shs FRS (Bri - 5168 
FRS. 96 602 29 SS 

Euotumd PLOEuotwsiel SA Unto H B>LC 
Ord 4Qp 6 1 ESA FRIG (80 - £26622 
(12SaM 

Eutriusid PLC/Eurctunnel SA Unto 
(Sieovam (naerfbed) - FR21 02.45 .6 .68 
105 .12 503 

EUrotusiW PLC/EiSOtumal SA Fntti 
WtspS’LC & 1ESA wraoSUb forUnks) • 
nsljS 2165(125000 
Ex-Lands PLC Warrants u sub tor Sbs - 23 
4{135«00 

ExcaBwr Group PLC 11^% Cum Prf Cl -35 
(12SO00 

ExpkxaUon CoMLCOrdStXSo-247 505 
FaJccn HakSngs PLC Ord Sp - 131 
Fks: CMcago Corp Cam Stk SS - 5*9% 

(93 e» 

Ftot Debarsud Fkunca PLC 11.125* Sew- 
afy GM Deb 8* 2018 - £117, >. 

First National Suiting Sodsty 1 1 %K Pum 
lit Boaring 9n EltXXX) - £98%* 

Rrst National Fkianco Cup PLC 7% Cm 
Cun Rad Prf CI - 133 
Forms PLC ADR (4=1) - VM (14S*00 
Ftaom PLC 5%% Uns Ln Sk 200400 - £09 
(I2SO04I 

Ftatchor CnaOsnga Ld Ord SN030 - 156 
P 43000 

Fallus Group PLC Old 50 - 44 7 8 
Faria PLC 61% lira Ln Stk 35/2000 - £99 
(14SO00 

Fortiun & Meson f\C Od Stk Cl - £66 
H3SO90 

Fnencay Hotels PLC 4%% Cm Cum Hod Prf 
Cl - 62 (I2S094) 

Fnondy Hotala PLC 7% Cm Cun Red ftf £1 

- 92 7 (9SO04) 

Frogmora EsBtw PLC 1185% 1st kttg Deb 
Stk 2000/03 - £105 (IZSO90 
GKN PLC ADR (1:1) - 30J6S 
GN Great NOrtfc Ld Sna OKIOO - DKB0l%* 
&R.(Hdp) PLC 104% 2nd Cum PH £1 - 90 
<9SaS0 

G.T. CNe Growin Find Ld Ord 8001 - 530% 
314 

Gansnl Acddsnt PLC 7%% Cun kid Prf £1 

- 9l4 % 

Gsnenl Acddsnt PLC H%* Cun km Prf £1 
-1054 

Genwai Soctrfc Co PLC ADR (1:1) - 8*4 
Gbtn & Dandy PLC Qd top - 95 
QbO Group Id 6%K Uns Ln SOt 85/95 SOp 
-40I8S000 


90X0 Group Ld 7%% Una Ln 8tk 85/85 5Dp 
-494 (139000 

Gtynwod t n a ma ilon d PLC 10%% Uns Ln Stk 
M90-E9B 

Goods Dursnl PLC 15% Cun Prf SOp • ZS 
(BS094) 

Qamptan Mt^js PLC 7% Oun Prf £1 -66 
(BSaSfl 

Grand MotiopoBtan PLC 5% Cun prf ci - S3 
(13So00 

ted Portland E ata tas PLC 9£W 1st Mlp 
Deb 91k 2016 - £1004 
teat Unhwsd saeras PLC ADR (1:i) - 58J36 
(12SO00 

tert U nl w ssl Stores PLC 5%% RsdUrw 
Ln Stk - £644 (14SS00 
teat Unbared Stores PLC S%% Rod Uns 
Ln Stk - £60 (12Sa60 
Greente* Group PLC B% Cun Prf 0-08 
(14SB00 

Gkaensto Group PLC 114% Mb SK 2014 - 
C119(14Sa90 

Cmirates Group PLC 7% Onv Sited Bda 
2003 peg) - £109 9 10 
Grstnete Group PLC 7% Cm Subord Bds 
2003 (Br) - Cl .081 (13SeS4) 

GUmm PLC ADR |61> - £2138 8 36% % 
HSBC Hkfgt PLC tel SH10 CHcrag Kong 
Rote - S7JB 8H89177IBZ >42133 
>87578 4 J5039 ^46625 A .7 % % BO .13 
•20-279037 

HSBC HUgs PLC 1140% Subord Beta 2002 
(Reg) -CIOS 8 

HSBC Hdgs PLC 11.80% Subord Bds 2002 
(Br &/■) - £1084 (138090 
Hsfltai BU«dhg Sodsty S% * Rsrm Inf Bern- 
tag are £50000 - £84%* 

I ki ta a x Butrflng Sackrty 12% Perm tat Bear- 
ing ere £1 peg aoooo) - C1144 (143000 
Hterin Hddtags PLC Ord Sp -67 70 
Hsi Engraet rin gfl fc^PLC 5JS% Cun Fta 
£1 - 85 (138a00 

Hambrqa EuobondSMoney Marie* Fd 
Rad Prf ip(Managad Fun4 - 63121 
(143*80 

Hwwnwson PLC Old 2Sp - 325 7* 30 1 4 
Hardys & Hanson* PLC Old 5p - 26S 
Ha nhp g ds Water Co Old SMt- £1700 
(B8a00 

Hwbrc fnc Sta of Com Stk SOSO - 5314 
(133*90 

Haunt GRk«r PLC 10% Cun Prf Cl - 94 
(14S*00 

Hotmw Pi utscHo n Group tac 8h* ol Com 8Bt 
cn » . 24 7 (139*00 

(S Ffimokran Fund NV Old FUL01 - £17 174 
17% 17% 17% 17% 17% 18 18% 
tostand Group PLC Cm Cum Rad Prf 20p - 
129 30 4 1 1 JJ7 >3 4 
Btagworth Manta Caftsk*) Ld 7% Non-Cun 
Prf 50p- 20 (123000 

taoh Karvolh Ksfsng Atbtar PLC lOp - £15 
(14SO00 

tadustrid Control Sanricw te PLCOid lOp - 
146* 

tall Slock Eachanga d UKSAap of kLd 7%S 
Mte otb SOI 8005 - £99% (14Sa00 
kwn uts plc am mil to - £t.gs 

JanOne Matheaan hittos Ld Ord 5025 (HOria 
Kong Ratfatorf - CW1439513 4221968 
-308094 

JanCne Sbtea^c Hdga Ld tel 5005 (Hong 
Kong RegteMri- SFQ2J9B283 >698 
J89QB1 10B8Z7S 

Johnson 6 Fklh Brown PLC 11 66% Cun Prf 
£1 -90 

Johnson Group Ctaanora PLC 7Jip (NsQ Cnv 
Cun Hod Prf lOp - 130 
Johnsonjriattfoy PIC 6% Cnv Cum Prf Cl - 
850 (BSs04) 

Johnston tex«] PLC 10% Cum Prf £1 - 90 
(138*00 

Kelsey Industries PLC 11%% Cun Prf Cl - 
110(138*90 

Mrrgrtay 1 rorawr Group PLC 165% Cun 
Plf£l -45 

KuuiCump* Fund Ld Sta(IDR to Br) 50.10 
(Qxi 7) - S4700 (8S«04) 

Kvoomw AS. Bre* A 9hs teCIZJO - 
NK301J4S* %* 

Lodbrok* Group PLC ADR (1:1) • 5234 
Land Securitas PLC 9% 1st Mtg Dab Stk 96/ 
2001 - £100 1% 

Lax) Saculttes PLC 6%% Uns Ln S8( 92/97 
- £934 (14Se00 

LASMO PLC 1(4% Ore Stk 2009 - £102-95 
(BSaB0 

Ubowa Rdtaum Mtaas Ld Od RQJ71 -68 
(T4Ste0 

Loads 6 Hdbeefc Buldng SocMy 13%% 

Pam tat Bearfng Sha £1000 - £121% % 
Leads Pamananl BterXng Sodsty 13%M 
Pum tat B ea ri ng £50000 -El 26% 

(135*00 

LowtaUchn) PLC 7% Cun Prf Stk £1 -75 
[12Se00 

LantefrloftnJPaitneraNp PLC 5% Cum Pit Stk 
£1 - 53 (140*00 

London ta twi teksirt Grcim PUS ADR (Sri) • 
S7.1 (123*90 

London O b lu M uu PLC Ord Ip - 2% (148*90 
Lonrho PLC AOT (Iri) - 52JJ5 JJB DO 
Looton PLC 8% Cm CUn l*d M £1 -122 
MEPC PLC 9%* lor Mfg Dab Stk 97/2002 - 
£100% (13SaB0 

ie>C PLC 8% Una Ln Btk 200006 - £91 
McCtsthy astooe PLC 6.75% Cun M Prf 
2003 £1 -85 

McCarthy 6 Stone PLC 7% Cm Uns In Stk 
99AM - £67 8 70 

Muxteta Oriental Internationa Ld am KUB 
(Hang Kang Rad - SH1 1.3480® 

Maks 6 Span* PLC ADR (Bril - £234323 
036*00 

Mala S Spencer PLC 10% Cun Prf £1 - 90 
028*00 

MaratoaThonpson 6 Evatod PLC 10%% 
Data Stk 2012 • £106% (125*00 
Msttov* PLC ADR (4ri) - 88% 9% 

Modiwt Rata* teup PLC 6%% Clw Un 
Ut Stk 9804 - £Bl4 048^0 
Mocuy intamatiarol kw That Ld Ptg Rsd 
Prf Ip fl sgsra Fusj - P40XW1 (13S*90 
Mersey Dodo 6 Habou Co B%* Rad Dab 
SKB4A7- £964028090 
M a s sy Doctor & Habou Co 34% Ind Dab 
Stk - £37 4 

Mdksia Bare PLC 14% Sdbom Una Ln Sta 
2002/07 - £1204 048*00 
Mara CTForraB PLC 10% 2nd Cum Prf Cl - 
120 (12Sa00 

Mount Crertotts tavaatmonta PLC 10%% 1« 
Mtg DO) Stk 2014 -£104% (139*00 
MuddovriAA JJGraup W.C 7% Cum Prf £1 - 

05 

W=C PLC 7%% Cm Beta 2007fRsg) - £90% 

% 

NOtona Powsr PLC ADR (lOri) - 575% 
National WOstrreiOsr Bode PLC 9% Non- 
Cun 8dg Prf 8*ra *A* £1 - 104% 

Newc a stl e Butdng Society 12%% Pam 
tataraat Beatag Shs £1000 - £114 % 4 
North Housing A amn to lto n Ld Zero Cpn Ln 
8ik 2019- 775(93e90 
North of Englaid Bu9dtag Society 124% 

Perm tat Beutaa pMOOCQ - £1154 % 8 4 
Nort hd sx t tavestments Ld R 0.10 - CQJ» 
(139*90 

Nardwm Foods nc 6%% Cm Suborn Bde 
2008 (Rad - £894 

ftaoOc Gw S Seethe CO Shs of Com Stk 56 
-522.7 

Parkland Group PLC Ord 2Sp - 183 O39a90 
Paterson Zoehonta PIC 74% Cun M Cl - 
87n2Se00 

PtMrabn Zoehonta PLC 10% Cum Prf Cl - 
116 (13S*94) 

Pod HkJgs PLC 5£S% (Net) Cm Cum Non- 
VlgPrfCI -97 

Pea South East Ld B%% Uns Ln Stk 87/97 - 
£80 1129*90 

Pea South Esa Ld 10% 1st Mtg Deb Stk 
2026 - £994 (14S*B0 

batons Foods PLC 8p<NaQ Cura Cm Red Prf 
100-88 

PsbT*na SA. OM Sta NPV (& In Dsnom 1^ 

6 f<8 - SFTOIfD 40 77 

Phtards H.C 94% Cum Prf £1 - 85 8 
Plantation S General taw PLC Wsnantt to 

sUtlorOm- 1 (1*3000 
Plantation & Geneta tom PLC 94% Cum 
Red Prf £1 - 90 (148e»0 
Rartotion S General tom PLC 0% Cm Una 
Ln Stk 1999 - C80 3 

Ptarftbrook Group PLC 6L75% Cm Rrf 91/ 
2001 lOp - 110(138090 
Rokptand (C.P) Co Ld Sta 5105 (Hong 
Kong Re^stsrsd) - 8H25S7 (12S«e0 
Portugese h w eeti nar ri Fund Ld Ord SOjOI A) 

- SS) 64 (9SoB0 

Ptegtotereutt PlaBnura Ld GM R1025 - 58S 

(13S*34) 

POHuGen PLC ADR (Iflrf; - C5&3325* 

Pitanto Hashti Group PLC Om ip - 2 % 
Pnmting PLC 9J% Cun Red PH Cl -88 90 
(138*90 

Quarto Group tac B.75p(MsQ CnvCUmRedSh* 
of PftJ 30(5110 - 146 (148*90 
□ucto Group PLC 10% Cun (MCI - 112 
(12S*00 

RPH Ld 44% Una Lil set 2D04A» - £38 
(12S*90 

RPH Ld 9% Un* Ln Stk 90/2004 - CB&4 
RTZ CorperOxra PLC 1325% 'A* Cun Prf 
£1 - 484 50 (14SeS0 
Raca Bearorta PLC AOR (2D) - 5758 
(12S*94) 

Rank Orasrfaation PLC ADR p:1) - £12.77 
.79 

n u ie cr uen PLC 185% Cum Prt £1 -43 
(12SO00 

flsrinit intemattoral PLC 5%K 2nd Cum 
PrfCl -54(83*60 

Raddtt & Caiman PLC S% Cun Prf £1 -54 
Read ti toma tto id PLC 40% (Fmly 7%) Cum 
Prf El - 73 (13S*00 

R*g* Property xogs PLC a%% Gu Uns Ln 
Stx 1997 - £93 (14S900 
Ratal Corporation PLC 4 J5% (Frrty 54%} 

Cum 3rd Prt Cl -63 
Rapner PLC 11 4% Cun Prf £i - 117 
(99e90 

Roya Bare of Scotland texip PLC 64% 

Cum Prf £1 -80 

Rpyto Bore o( Scodand Gro^k PLC 11% 

Cun Prt Cl - 110 P2SOM) 

Raya toisn Hoktoga PIC 7%K Cnv 
SUxxd Bds 2007 (Br £ Va) ■ £108 
Rubicon Grout PLC B% Cum Prt SOD -27 
(123a90 

Rugby Gnxv PLC 6% Uns Ln Stk 03/Sfl - 
C88 (148*00 

Hueadjw— ndod PLC &.75H Cum Cm Hod 
W- 100 (138*00 

SeatoN & Saattto Co PLC ADR prij - $7% 
(i3Ss0*) 

SOnsbUytJ) PLC AOR (Iri) - S7.1 (139*00 
SOrObuyU) PLC 8% tad Una In 80i - £81 
(145*04) 


Sway Hat0 PLC “B" Ord 5p - £55 
Scamranto Hdgs PUC 7JOp (Net) Cm Cun 
Red m 20p - 73 (12S*90 
3 uai iti u i i)c Hdgs PLC 176% Orw Cun Red 
Prt £l -SSn4Se00 
SchnaUara(&) 6 Son Ld 6% Cun Red 
Prtpooo or tfterffil -57 029*94) 

Schol PLC 8%% Cun Rod PH 2001/06 £1 - 
66(139*00 

Schol PLC «»% Cm Cun Red Prf 2006/1 1 
£1 -83* 

S chi oder Jw aneee warrta* Fund Ld PR (to 
□enem 100 She & lOOdO Sta) - 3130 
(139*00 

SootUsh Mukupotton Property PLC 10%% 
let MW Deb Stk 2016 - £101 % 

Scottish 6 Netware* PIC 4.6% Cum Prf £T 
-67 (12SoS0 

BooBWr 1 Neweaoto PLC 7% Cnv Cum W 
£1-233(128*90 

Sous PLC 4S% (Frrty 7%) 'A* Cun Prt Cl - 
68 (148*90 

Soon PLC 175% (FfOy 124%) Cun Prf £1 - 
1OOpSaB0 

Son PUC 7%% Uns Ln Sbr 82/97 - £96 
(138*00 

8wsm Rtaar Oosstog PLC 8% todex-Ltafcad 
Deb SMC 2012 (8444%) - 015% 

Shea TransportSTredkigCo PLC 54% let 
PrflCuTlKI -60 

SHoprite Ftnance (UK) PLC 7J97Sp(Nel) Cum 
RW Prf Sha 2009 - 44 4 6 
Signet Group PLC ADR pril - Si « 

Sdptoi BUkftag Society 12%% Pertn W 
Bearing Sta OOOO - £1184 74 
Smith New Caul PLC 12% Suborn Uns Ln 
SOt 2001 -£103 

artittr (WJU temp PLC 5%% Rsd Uns Ln 
Stic - £534 P2SS00 

Sixth (tea Beacham PLC ADR (Bel) - S32.7 
|9S«00 

SnxthKIns Beacham PLC^mKhXIna ADR 
(5:1) - 5318 % S| AS 
Sixths Industries PLC 11%% Deb Stic 95/ 
2000-001 

South S utBunlali k e Water PLC 4% R*m Deb 
Stic -£41% (123*90 

spartan Smreer Companies Fund Wts to Sub 
tar Shs 52 -51.1 03490 
Stag FumQire Hdge PLC 11% Cun Prf £1 - 
98(98*90 

Standard Chartered PLC 12%% Subcsd Una 
Ln Stic 20Q2A17 -018% % 

Swtra(Jahr} & Sons Ld 13% Cum Prf O • 74 
S ymuid e Di gfciew ln g WCOnd5p-34 
TSB Git Fttad Ld Ptg Rad M IrtCSsraS-A" 

Ptg Rad PM) - 100J7 (13S*30 
TSB Group PLC 10%% Subord Ln Stk 2008 
- 005% S{ 

T ek*ra PLC 113% 1* Mtg Dto 8tk 2014 • 
£108 (13SO90 

Tit* 3 Lyta PLC AOR (4ri) - 527% (123*94) 
Tkte & Lyle PLC 64%tf-55% Mo lax cred- 
•JCumPrfO -88 

TOi iLyte PIC 8% Una Ui Stk 200100. 
£86% (148080 

Teo» PLC ADR (1:1) - Slfl (12S*00 
Twco PLC 4% Itas Deep Qac Ui Stic 2006 • 
£61% (149*00 

THORN BM PLC ADR Dri) - Si 54* 
Titeatger House PLC 5£76% Cun Wtl- 
75(133000 

TraWger House PIC 7% Uns Deb Stk £1 - 
68(143*90 

TisMgsr House PLC B% Uns Ln 8tk 94/99 - 
£89(12Se00 

TVOOBV FtouM PLC 04% Uns Lil Stic 2000/ 
05 - £854 (133*90 

TratOgor Houre PLC 10%% Uns Ln Stic 
2001/08 • £97 8 (148000 
Transatlantic Hoidngs PLC B 6% Cm Prf £1 
-934 

Transport O ev O opm e n t Groito PLC S%% 

Ltoa lit Stic tom ■ £85 (148*90 
UnJgata PLC ADH (1:1) - S567 (123*90 
Unflats PLC 64% UmLn Stk 9U96- £96 
Urdevu PLC ADR (4.-1) - S7045* 

Untan totonofona Co PLC 8% Cum Prt Stir 
£1-39(148000 

Unkxi litomettana Co PLC 7% Cum FW S» 
£1-40 (148*90 

Unisys Com Com Stic S0C1 • 5104846* 
Untied Plantations Africa Ld Old ROJO -£0% 
0% 039*90 

UtlltyCabto PLC Warrants to editor Ord - 
19(139*00 

VOue A tocome Truat PLC Woims 8BG4 to 
sub tar Ord - 50 (?3Se04) 

Vow Group PLC 7% Cum Prf £1 - 70 
(128000 

Vtokoa PLC 5% CunfTex Fra* To 3(to)Pif 
Stic El-82 

Vbdrexw tetito PLC ADR(10n) - 529% 999 
30 

Wtagon hduetria Hdgs PLC 7.25p (NeQ Cm 
Pig Ml Op- 145* 

WbOw(Ihomw) nC Ord 5p - 32 (12Se00 
Warbug (SA) Group PLC 7%% Cum M £1 


Werbug (SA) Group PLC Cm Did 2Sp - 
400(66000 

WMmougMHkfefl PLC 8%% Cum Red Prf 
2006 £1 - 100 (9Se90 
Wefcgm e PLC ADR (1:1) - *fOSI* 

War*toy PLC 6p(N*l)Cm Cum Red Prf 1899 
£1-613 

WMbread PLC fi% 3rd Cun Rrl 8tk El - 
654(139*00 

vmriveod PLC 4%% Rod OebStic 89/2004. 
£70 

Whlcbraad PLC 7%% Uns Ln 8tk B3te9 - £91 
WMBXMd PLC 7%% Una Ln Stic 86/2000 - 
EB24* 

W W e rxi» RfcktteOidgfl Ld 5% Cun Prf 
Stk Cl (Tax Fra* To SOp) - 7b f 12SoS0 
Wfltarra Hdgs FVC T0%% Cun Fkf £1 - 120 
(123*00 

WKs Ctxnxxi Group PLC ADR (&1) - 
SI 2^86 (133*00 

Wrexhan & East Danb Water Co 4^% PtPg 
Ord Stk- M B 

Xaroa Corp Cun SO. Si -5107 1049 (9S«00 
York WStarwoik* PLC Non-Vtg ‘A’ Ord lOp - 
290(138*90 

Yorkehtor-Tyno T**e TV Mdge PLC Wle to 
sub far are - 204 S 

Zambia Ccrartktatad Copper Mnae UTB* 

Old KtO- 215 (199890 

Investment Trusts 

Trust PLC 4% Prf Stk (Cum) - £40 
That RjC 4%% Prf Stic (Cuiti - 

£424 

ABance Truet PLC 5% Prt SM - CSO 
Attanca Trust PLC *4% Deb Stk Rad attar 
15/5/56 - B46 (123*90 
American Inert PLC 34% (FrrXy 3%) Cum 
Prf Stir - ESI (98*94) 

BaB* Gttloid Japan Trust PLC WB to Slto 
Ord She - 135 (133*90 
BafBa Gtftad St«n Nflpan nC Wannts to 
sub tor Od - 182 (12&O90 
Barteae tovaam a nt That PLC 104% Oh 
Stic 2016 - C10&& (139*90 
Baring Tribute towtorenr Trust PLC9 I «% 
Deb Stic 2012- 06 (138*90 
British Assets That PLC BquWw tadex ULS 
2006 lOp- 158 

Capital Pairing Trust PLC Old 25p - 480 73 
(149000 

Danas krvastment That R£ Wts to Sd»- 
eerfb* tar 1 tac 6 1 Cep • 83 (148*90 
FtaSbuy Smeler Co's That PLC Zero DM Prt 
2Sp- 182 

FtonXna ctsverttoum tav That PLC 11% Deb 
Stk 2000 - £11 Oi (133*90 
n erat n g Mercentte tov That nc 15% Cun 
Prf Stk £1 -61 (88*00 
Foreign 6 Cotorta Eurotnat PLC 5%% Cm 
Uns Ln Stii 1996 - £380 (8Sre0 
Foreign 6 Col tovwt Trust PLC 16% (Frrty 
5%) Cum Prt Stk £T -50 
Catmore BrftiOr Inc 6 teh Ttit PLCZuo DM- 
dend Prf IGp - 1024 3 048*04) 

Gutinare Stared Eqrtty Trust PLC Geared 
Ord inc lOp - 104 4 B 6 
Govttt Stiteagto tav Tnot PLC 104% Dob 
SBt 2016 - E10&A (l3Se00 
Gored Strotagic Inv Trust PLC 11 4% Dsb 
88(2014 • £1174 (135*90 
KTR jxpoiese Sndrr Co’s Trust PLCQrd 
25p - 11144 

mvwtora Capital Trust PLC 54% Cun Prf 

8rk - C54 

Lozard SOect bweetmerit Trust Ld Pig Red 
Prf lip U.K. Active Fund - £14>3 14>7 


Seeond ABanca Tnai PIC 44% Cun m 

rat, . £47 

Stares Htfi-Yleidtng &nto Co's TOWts to 

Slto tartei - 72 (14Se90 

SfXv-re Investment Truef PlC Reused War- 
m to sito tor &d - 54* 

TR Ctry of London TnOlPlC 10%% 0*0 SO 
2ft» - £106 A (199*04) 

TR amefar Cunpanle* tav Thai PIC JlUjH 

Dab 31k 2016 - £106A (1380*0 
Tarretie Bar Invootmuri That PIC 7% Qrm 
Prt stk Cl -71 (6S400 
W1»nore Property KwestmtaX Ttf PLGWia 10 
Sgfa tor Ord - 37 

Wtan taWHbnnl CO PLC 84% S* 

2016 - £824 

Miscellaneous Warrants 

AustiOto £ Now ZeOand Sandng Gfl Ld 

Rlfl to Cotas Myw Ord 28/WB4 - 
CA118B24* 

USM Appendix 

Betas PLC Ord IOp-380 
FBO Krtdtage PLC Old kflXS) - Cl.fi 
(14S|M 

Gtaba Maw PLC OKI 2Sp - 418(14SeB0 
Mkflurd & SootiUi Raaotecae PLC CM top - 

3 

Startng PuUeNng Group PLC 6% Cm Cun 
Red Prt 2000 £1 - 1194 ® f*S*04) 

Tota Systems PLC Ord 5p - 28 32 (143*00 
UHtad Energy PLC Wte to sdi tor Ord - 3 
(143*90 

Rule 4.2(a) 

amqo tem me om top -eaestflisre? - 
Actaarm 6 Go PLC "B* Orff £1 - CM 
Advanced Motto Systems PLC Ord £1 - £1.0 
(13SeB0 

Arm sued Brawuy Co Ld Od £1 - £1* 
(139*60 

Amos vrnag* Ld Ord lOp - £133 ( 129 «XM) 
Ascot Htogs PLC Va Roto Cm Cun Red Prf 

iap-£OJB(14Se90 

Asten VOe Foattrdl Ctob PLC Oid £5(1 vate) 

- £85 

Aura terop PLC Otd lOp ■ CO 223 123 
(149000 

Bte Gout Find Mensgement PLC OrdlOp - 
£1.17 

Blsan katiadia Groito PLC Ord Ip - £108 
Bevmess LOsue RC Ord £1 - £11 
BrarxxtoHoktogs PLC Old Sp- E0>5 0>5 
njet 147 04 

Brocktatac Group PLC Old TOp - £2 (148a90 
Carrie MtiBng Industries PLC 74% Un* Ln 

S& 01/03 - E75 (B8a94) 

CoverXuun PLC Ord Ip • CD-I 
Celtic Footbati & AtiXotic Co Ld Ord £1 - 
£664 (1230941 64485654 75 
Channel tefande Corns (TV) Ld Otd Sp - CO-52 
(139o00 

Church (Charted Group PLC A fled nf Cl - 

£128 028 129 (13S*00 
OotaBM- That PLC Od 2Sp - EQ22 

Cooper Clarke temp PLC Ord SQp - 57 


Lareid Soect taveabnent That Ld Pig Red 
Prf lip U.K. Liquid Assets Fund - £10* 
Lazard Se/acf (rrvusfment That Ld Pig Red 
Rrl lip Japan kidw Rrad - 8516 76 
(9S«00 

London & St Lawienoa Investment PLCOrd 
Sp - 161 (148*90 

MugentenMtetoAmerCo’s TM PLCWts to 
sub tor Ord - 81 4 4 3 
Murray keonaOonrt Trust PUC 36% Cun Prf 
£1-57 

Northern tartaet tinprav Trust PLC Od £1 - 
646 (12Ss90 

Paribas Ranch In require it Tnot PLCSare *A* 
Warrants to eub for Ord - 28 (I49e0«) 
Soooah Eaeum hw That PLC 44% Cun 
Prf Stic - £46 

Scofitah EBBtem tav Titot PLC 0fi% Dec Stk 
2020 -£104 (128090 
Scottish Eastern kw Tnot PLC 12%% Dab 
Stk 2012- £124 (13SO90 
Scottish Investment Tnot R.C 15% Cun 
PldStk-£S2(12Srtei) 

Scottish toreetmerX Trust PLC 18S% Ccxn 
PW Stic - E57 (BSe90 
Sootitoh kw uetnea i l Trust R-C 465% Cun 
‘A* Prf Stk- £88(98*90 
Scottish Netiona That PLC 10% Deb 3dr 
2011 - C102JJ (138*90 


Country Gardens RjC Ord 2Sp - £157 
CrowtherfJohn Edwwd) Hidga 54% Cun Prf 
£1 -1066(99090 
D66. Management PLC OrdlOp - 
Oeit vatoy Ught Uway Id Ord £l - £2% 
(148*90 

Damn KUgs PLC Ord lOp • £46 (138*90 
Da tetchy (Mxrtren) Co Lid Ord 20p - £16 
(133*90 

Doutfae Go* PLC Otd 2Sp - £16* (B9a80 
Eastbourne HWar Co &87SM let Cum ftan 
Prf • £1615 (13Sa00 

EdenlWd PLC Old ip - £145 164 (BS«90 
Fotake Ld Ord £1 - £1.17* 

Faxeast Broadcom Corporation nc Ord 5p • 
£049041515 

r rxt n e cai i tatemetta na Group PLC Old Ip - 
£0>5 

Furtcng Homes Groito BUS Old lOp - £165 
(145*90 

Gander Hrtt&rep PLC Ord ip - £066 
(128000 

Gnxtaeta Appotakmnte PLC Old ip - £0.17 
Grtryerone PLC 112%0>tol) Non- Vlg Cun 
Cm Prf 25p - £04 (128*00 
Guamrey Gu Ught Co Ld Od Hto - £199* 
Gutmeey Press Co Ld Ord lOp - £2 (123*90 
I ksnfaros Fuel Managera(CX) Japur Enter- 
prfM Fund - C2.S4681G (33eS0 
Henry Cooke teto PLC Ord lOp - £061623 
(12Sa80 

Hydro Hotel Oratboune PLC Ord n -£466 
(133*00 

I E S Grotto PLC Ord lOp - £3> (139*00 
FTS Grotto PLC Od Cl -£04 
Information Pubtidting PLC Ord ip- QUO 
(129*90 


juratags Bros Ld Ord 25P - n.BS 1.9 
(138*00 

jarwBngs Bros Ld Cun Pit £1 - £065 w 
(93*94) " 

Jurt texip PLC Ckd Ip - C0.03S 0.04 
tOWnrorf Beneonflirt Fuid Mon KB G« Fund 

- £14.109407 (139400 

Ktetawcrt Bensondrs) Fund Man W Equity 
Gwtii me ■ CC.787 (12S404) 

Unewhta Entarprtsas PLC Old Sp - £1.65 
(139*00 

Umronce PLC Otd it* - Ci64 pSetM) 

Uwn* Grotto PLC Old Cl -C57 (14S«90 
La RldlM'S Stores LdOiO Cl -£2% 

Ltesuetima tana PLC Od Sp - £0-08* 

London Fiduciary Tnot PlC Ord lp - 

£10125 0613751015 

Uanrhnater City FdOtiXl CM) PLC CM £1 - 
£14(148*90 

Manx & Owreeaa PLC Ord 5p - £0.07 

Marine A Mareantite SecurtBos PLC Old - 

UC120-E2 

Uotflk taUmational Group PLC Old Ip - 
0063 

Newbury Racocmrae PLC Ord C100 - £2400 
North East Water PLC Ord £1 - £11 
North West Exploration PLC Ord ip - 2jfr 
(88*90 

OnmfModta PLC Od 5p - £14 
Pacific M*dU RC Old Ip - 24 4 % 

Pan Andean Reaoucw PLC Old ip - 
BUMS* 

PMpatuagjeraey) Onshore AOan Smteor 
MartMB - £1.191037* 

ParoetuOUereay) Offshore Emei^ng Cart - 
56622502 (148*94) 

PetpauatiJwwrrf Offshore For Enrtem Gmffi 
Fd- £1442730 (138*00 
PcvpatudLlwsoy) Oflanor* IM Growth - 
$2681385 (143*90 
Quay Proporttes Ld Cl -£0625(99*00 
Rangers FoteboO Cfati PLC Ord top - £185 
Rangcre Rwtbaa Ctob PLC C Deb Stk C1SOO 
-£1550(123000 

Saxon Hawk Groito PLC Old £1 • E2.7 

ns&aoo 

Schroder Monaflement 3orvlcoo<Guwri)Schro- 
der European Bond - £868(99*90 
Scottish Rugby Union 'B* Debs £2200 - 
£2300 (12Ss04) 

Select tadusMK PLC Near On T4b (5p Pc| 

- £0635 

Severn Vltitay Rafway*tofls8>LC tel Cl - 
BL7 (145*90 

Shepherd Neama Ld 'A* Ora £T - £6% 

(138*00 

Souffiam Newspapers PLC Ord £1 - C464 
4% 

Southern Vectis PLC Ord IQp - £0% 

Sun OD Britain Ld DC Royalty Stk Unto ip - 
£0.7(143*90 

Thwato3(DarM05 Co PLC Qnf 25p - C2JJ 
(98*90 

Dtaghu PLC Ord 5p - £068 (99*94) 

Tracker Notaufc PLC Ord Cl - £13% 

(143*00 

UAPT-tntaSrXv PLC Ort25p - £86* 

Unicom ksis PLC Ord 25p - E06 (138*00 
Vista Enlertalritana PLC Ord 5p - £00125 
P43*00 

Warburg tasat Management Jereay Msrouv 
tall Gold 6 Genera Fd - £1612 
WMdertxsn Securities PLC Ord Sp - GO. 135 
(148090 

WeetrtiXx Ld 'A‘ Non-VOnj 2Sp - £17%* 
WhRc t ei roh Grotto PLC Od lOp - £064 
(133*00 

Winchester MuM Motto PLC Ord Bp • £18 
(138000 

Wymstsy FTopemea PLC 26p - £16 
(14SeO0 

RULE 2.1 (a)M 

Bwgabte marked bi securities (not 
fading within Rule 2.1 (a)(Q ) where 
the pridpal market is outaida the 
UK and Republic of Ireland . 

AwL Foundation Inv. AS2.T467 (146) 

Bench Furaleun A30-12S (146) 

Ctiy Devete p me ma 576498 
Kuflm Mebyeia 886 (1261 

NaL Boctranl ca Udgs. 1*50634 (146) 

Partrran Un tag 065 (128) 

Pannknlon of DM Stock Brdterv* CooncB 


4 A 

8 V 
’> 


v* 





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»1 •. 



FINANCIAL TIMES 


WEEKEND SEPTEMBER 



MARKET REPORT 


’ US data prompt setback in bonds and shares 

Bv Tnnv BvImwi 


FT-SE-A All-Share index 

f.675 - - - 

1.650 - — .. 


Equity Shares Traded 

Tumotw by volume (mUtor* EnduUng- 
Infra-market Dusnaaa and overseas turnover 
1,000 — 



in 


... i •. <“ 
■S W*T ' ■ ’ 


Z'f 


By Terry Bytand, ‘ 

UK Stock Market Edftor 

A heavy setback in global bond 
markets, prompted by unexpectedly 
strong data on the US Sy 
parked off another slide in the Lo£ 
ton equity market yesterday after- 
noon. Towards the close of busi- 
ness, when UK government bonds 
were more than points down an d 
stock index futures at 3 substantial 
discount to the FT-SE 100 Index. 

share prices virtually coDapsed. 

The FT-SE 100 index ended the 
day at 3,065.1, a net 47.6 down in its 
largest daily fall since mid-June 
■Hie FT-SE Mid 250 Index, less 
closely linked to futures selling 
held its loss to 32B for a final read- 
ing Of 3.616.1. 

Market strategists were signifi- 
cantly less pessimistic than the £aU 


TRADING VOLUME 


■ Malar Stocks Yettterdxv 

Oojfcja Dmf’n 

— 999! gta» «fa"oa 

. 2jno ea -x 

3JJOO SCk«>2 -T1 »j 
*JOO Si 
2JOO 571 


in the Footsie suggested, and 
pointed out that liquidity is notori- 
ously thin on Friday afternoons. Mr 
Ian Harnett of Strauss Turnbull 
described the outcome of the equity 
session as "a great buying opportu- 
nity". 

The more serious blows fell on 
the bond markets, where UK gilts 
began to fall sharply following the 
announcement at mid-morning of 
an August Public Sector Borrowing 
Requirement well outside market 
estimates. 

Both short and long-dated gilts 
were already sharply off when US 
bonds began to shy away as New 
York awaited two key eels of eco- 
nomic data. News that in August. 
US capacity utilisation had jumped 
to 84.7 per cent and industrial pro- 
duction had gained 0.7 per cent 
brought a wide-ranging fall in bond 


nmriurfg 

The slide in UK gilts quickly 
gathered pace, with some analysts 
warning that the Federal Reserve 
might raise rates very soon. Con- 
cern focused around prospects for 
the auction of a new UK gilt cm 
Wednesday, the Bank of England 
confirming market expectations by 
announcing yesterday that it would 
be a conventional bond maturing in 
the 2004-2006 'range. Some pessi- 
mists whispered that the Bank had 
argued for a full point rise In base 
rates this week. 

The FT-SE 100 Index has fallen by 
nearly 2.4 per cent this week as the 
first rise in base rates for nearly 
five years has left the UK bond mar- 
kets still vulnerable to shocks from 
overseas. Weakness in German 
bonds yesterday was seen as a fur- 
ther threat to gilt-edged securities. 


Early trading saw equities, as 
expected, driven by pressures from 
the expiry of the September con- 
tract in the stock index futures mar- 
ket - although this passed off with- 
out incident The Footsie was 20 
points up at first, and then 7 points 
down as the futures-related blue 
chips swayed with the September 
contract expiry. But these technical 
factors in equities were quickly for- 
gotten when bond prices began to 

fail 

Few sectors were spared in the 
general shake-out. Dollar-orientated 
shares took further presure when 
the US currency weakened. The 
blue chip oil shares so longer pro- 
vided the positive lead of the past 
few sessions. Retail, consumer and 
store shares took further punish- 
ment from fears that the interest 
rate cycle was about to torn 


upwards much sooner than expec- 
ted. Banks gave back a few early 
gains as the rout spread across the 
market 

Many analysts remained b ullish, 
maintaining that the US data con- 
firmed that die economy is recover- 
ing strongly. By this yardstick, the 
feUs in braid markets were to be 
expected, but equities should bene- 
fit over the medium term. Bond/ 
equity market ratings are believed 
to be less stretched in London than 
fn the US, and the spread between 
London and New York equity mar- 
kets is also regarded as favourable 
to the UK. 

However, little genuine and last- 
ing upturn in UK equities is 
thought likely until the gilt-edged 
market can at least stahnisp and 
then make some recovery from its 
losses. 



Scmk FT Gophila 


1994 


Sep 



■ Kay indicators 

Indices and ratios 

FT-SE Mid 250 3616.1 

FT-SE-A 350 1548J 

FT-SE-A All-Share 1539.71 

FT-SE-A All-Share yield 3.90 

FT Onfinary Index 2388.1 

FT-SE-A Non FrtS p/e 18.96 

FT-SE 100 Fut Sep 310&5 

10 yr Gflt yield 9.06 

Long gilt/equity yid ratio: 2L31 


-<32.8 

-21.7 

-0.77 

085) 

-38.1 

(19.23) 

-7.5 

(8.88) 

(2.30) 


FT-SE 100 Index 

Closing index for Sep 16..— 3065.1 

Change over week -742 

Sep 15 3112.7 

Sep 14 3079.8 

Sep 13 3121.4 

Sep 12 3128.8 

High* ..3141.2 

LOW' 3004.6 

Intra-day high and low for wm|> 


EQUITY FUTURES AND OPTIONS TRADING 



wiQQraT 
Amocl ft*. FOodrf 
Anec. att. Ports 
BAAt 
BAThdxt 
- BET 
ۥ HCC 
HOC t 
BPt 

BPBhKta. 

Bit 

BT ffWsa* 



The expiry of the September 
contract on the FT-SE 100 
Index proved to be a damp 
squib yesterday morning and 
was quickly forgotten as the 
pressure of the market setback 
fell on the new December 
contract September expired 
comfortably at 3.108.5 but the 
December contract quickly 


plunged to a discount In heavy 
volume. December closed at 
3,056 a 7 point discount the 
cash market with the new fair 
value premium set around 13 
points. Some 22,805 contracts 
were traded, taking in late 
dealings. Activity In trade 
options eased to 51,376 
contracts. 


■ FT-SE mo amex fumb (uffej asp * m index pow 



Open 

Sett price 

Change 

Hgh 

Lour EM. vpl 

Open Int. 

Sep 

31289 

3106.5 

-7® 

31300 

3099® 

7255? 

11731 

Dec 

3133® 

3058® 

-67® 

31360 

3066® 

22846 

48660 

Mar 

3104® 

3081® 

-70® 

3111.0 

3063® 

220 

57S 

m FT-SE MOD 250 MOEX FUTURES (LiFFE) £10 per Ml index pokd 



Sep 

3655® 

3834® 

-11® 

3655® 

3833.0 

882 

2831 

Osc 

3678.0 

3630® 

-36® 

3678® 

36600 

683 

2530 

■ FT-8E MH> 250 BOJEX FUTURES (OMJQ £10 pre tul Iruta point 



Deo 

- 

3633® 

- 

- 

- 

• 

638 


M open Intern! ferns am tar prevtoua day. t fans name Mown. 


■ FT-SE 100 MDEX OPTION (LUTE) f3066) CIO per ful index point 


2900 2BS0 3000 3060 

CPCPCPCP 
St* 1002 1W2 802 102 

Oct WP2 « 10*1 30 92*2 Mb Wj fi6 

MW 187*2 35 ISO 47*2 IIS S2>2 07 82 


3500 3550 3800 3650 3700 3750 

Dec 174*2 90 147b 112 123 137 

Otf 0 Mi 0 Stftenta prim ad Cnin ntae a UOm. 


3800 


3850 


FT-SE-A INDICES - LEADERS & LAGGARDS 


PereenLago changers shoe December 31 1993 based on Friday September is 1994 
Of Exmmai 5 PWJ +11W Fort HnMan — -4.44 FT-6E 100 -WL33 

nb» 9 .pjp«apt*a— ftse*ksso_ -xaa mar — -1447 

♦8-89 Cm itaufirfcnrr -478 USBn -1U3 

HWhCai_ _ -HO Tmant , — -1Z$4 

. -&Si Os (Mental -1244 

, -I1JB ua Amrara - -1298 

Sepal Sanfcu -898 OttOtas -1U8 

Ofikn -731 n—MdGBPfc -14.73 

BtetafeiDeaEfeM -896 MsmOaet* -147$ 

-8.45 Batdtag I ta W i -15.T8 


egreecnag. Wds _ 

4*88 

Ejtacbn totrtefs *577 



Cteeteto 

*473 



n-SE SdtaCapM TT 

*X4J 



tetaie&Houii 

-098 

tart* — -■ — 
FTCtMtBiwMB- 
FT-SE Ud 250 el. 

Me* _ 

-273 

— -a.!# 

-4X7 

-441 


-847 ft*lny 4 Cgnsnooa -184B 

-471 ftta d ab -1731 

-099 Spfeb. Uxa £ Ota -888 fa t*tf -18.49 

FT-SE-A 350 -897 TO— X— -1 WS 

1«llas&*pm< -930 Bata -19.19 

1998 

-948 TaOecco -2538 


FT - SE Actuaries Share indices 


The UK Series 


Sfe 18 tSgA So 15 Sfe 14 Sw 13 


Dk Eae. 

vn i» 


FIE Xda«. 

OB ft 


ISH 


HIP 


Mgk 


Us* 


FT47M8 
FT-SE MU 259 
FT-6E NSOBlM TbhH 
FT-« HI 358 

FT-® Mb| as In tab 
FT-SE-A AU.-SUK 

■ FT-SE Actuaries 


3065.1 -15 

9818.1 -09 
38142 -09 
15485 -1.4 

1875.10 -03 
134477 -«2 
153971 -13 


3112.7 30793 
36489 36384 
36485 38382 
15102 15585 

187009 1819.72 
18*8-42 184897 
155*98 154837 


3121.4 
36 781 
36711 
15786 

1891.48 
185954 
II 


30055 

34257 

34413 

15088 

178872 

176858 

149479 


813 791 
143 551 
358 650 
398 873 
305 450 
823 884 
390 954 


1697 9L70 115835 
2080 3258 134806 41S5 
1315 85.75 134005 41807 

1792 44.79 119455 17783 
3052 3860 145129 209899 
SOW 4062 143198 2H072 
1018 4397 13J8.M 178811 


2/2 28708 24A 
30 27834 27® 
19/1 33824 27® 
2/2 1CU 24® 
VZ 177051 an 
4/2 175258 137 
20 144595 24® 


35203 2/2/94 

41529 3094 

41807 ien®4 
17783 2094 

2DB4J6 4094 
208072 4094 

179811 2094 


9889 23/7JB4 
13704 21/1/86 
13703 21/U88 
8645 14/VB6 
130178 91/12/82 
1383J9 31/12 /SZ 
8192 13/72/74 


All-Share 

oars 

sap 16 dmn% So 15 Stp 14 


1 13 


Yaar 

V 


OH. E am. 

jU% jtfft 


WE U4 
nan ft 


Total 


1 0 * 


m 


10 Masuu. EXtmcraipQ 

12 Cxntoe bMhtttat® 

IS OL wesratadra 

10 a be ta ow n £ Pwdpl) 


270593 -14 274558 Z73266 
393051 -05 385039 391791 
2651.00 -1® 2695.35 268852 
195978 -15 198076 1982.12 


275658 2252.10 333 5.11 2456 5877 107019 

397292 318000 027 5.12 24.48 5494 107Z81 

2703.44 210550 3.47 597 2195 5&9B 107082 

201078 184290 212 t t 2096 112373 


2602*1 

410795 


20 6EN lUWMCIWMSPfiq 182036 -1.1 1946.48 193257 

2T Stay & Oownrtonpa 109019 -19 111041 111181 

22 Bdktag Man & MarctoOl) 1652.49 -01 1692.68 187792 

23 ChmSC3J(ZZ) 243795 -09 2459.02 243033 

24 pndM WuSrtabtlS) 185857 -09 1871.05 185058 

25 Brctra* & EtacJ Brt*34) 193624 -04 194*99 1027.87 

26 EngnoemapUl 18207* -09 1848T8 1837.52 

27 fayMOftno WttaetdQ 2274.19 -1® 229794 228857 

28 was. P®ar £ ft/ipB } 285455 -1.0 2882.W 2873- 1 * 

29 Tnotos £ MiparaCq 1647.30 -27 W85.18 1683.10 


185895 

113034 

190954 

244031 

188075 

195293 

186890 

231941 

291082 

169072 


187890 

113990 

180880 

221070 

195190 

2068.70 

162990 

190890 

241490 

1897.10 


398 495 
055 496 
398 498 
391 4.19 
494 692 
398 651 
011 *98 
457 Z54 
ODD 550 
4.08 855 


2451 5467 
2057 2086 
2047 4758 
3098 7417 
2397 67.10 
1851-5596 
2424 4195 
58.18 7037 
2293 6121 
1041 4048 


97007 

855.42 
86019 

107956 

94592 

94599 

104071 

110159 

1120.42 
927.79 


156010 


223157 


sm.tr 

251095 


30 CONSUMER 60006(971 272352 -19 2789.14 274192 277043 

22J19* -15 226 JU 0 assaio 2271.41 
V aSTSoM £ CU«(1« W»95 -15 284899 261215 288044 

S toTuaadaum^ 235043 -04 238193 233135 236077 

34 Hmes/mM CooMdS 244159 -0.7 2458.19 249928 2471-77 

36 16K159 -0.4 166090 1687.79 1672J1 

* Zn«WI3 2975-47 -29 305042 302065 3Q5BM 

iSl 3*6499 -1® 353191 3*81.47 354438 


277460 

208280 

203090 

2310.70 

265790 

1711.30 

3(B650 

399790 


436 7.42 
4m 797 
395 898 
413 7.74 
189 7.43 
100 12 * 
493 732 
025 992 


1591 8034 

1594 8193 
1090 8352 

1595 71.13 
1012 5452 
4131 3590 
16.05 7898 
1082 21797 


834.18 

90892 

80095 

985.72 

B71.T7 

96199 

03792 

79032 


288414 

190013 


<71898 


40 ssmcEScna) iB3iw 

41 DWreutasOH 256356 

43 LeKtn & HOtttaGM 2057.58 

43 iintflfll 281061 

44 FWtatl FooNiq 183117 

«$ faatas. CmritUI 1634^? 

46 Support Semces(4q 15fil, S 

*9 TraepoiHiq 2j®82 

51 Otter Santos £ B«a>n«<B| 129003 


-1.1 195694 
-a2 256892 
-05 2075.48 
-19 284898 
-15 186029 
-1® 188158 
-ai 15617* 
-1® 231041 
— 129556 


193160 

2555.47 

205157 

285096 

181458 

163011 

155041 

2312.68 

IT88JD 


196053 

2817.77 

208031 

289297 

182753 

165794 

157297 

232155 

1302.82 


189100 
271 SJO 
133590 
251190 
181040 
165890 
181490 
2247.70 
129000 


118 020 
154 654 
138 471 
2.45 036 
ISO 058 
122 058 
IK 004 
398 530 
391 115 


1142 4278 
1790 6458 
2484 4093 
21.72 6457 
1443 45.10 
1088 I** 
1153 2078 
2194 4151 
80®Qt 2198 


94089 

88595 

101293 

97024 

<09043 

87092 

94004 

80096 

110999 


2207.77 

535033 

236082 

3349.11 

191420 

181067 


M 

2C38JB 

31/1 

2SB3JB 

5rB94 

3H620 

18088 

2 n 

365*88 

12/7 

410738 

2J2& 

180089 31/12/85 

5/9 

234098 

303 

27B2j4B 

5W94 

98230 

2012/88 

27/4 

1764®) 

31/3 

3844.10 

63190 

60030 

28/7/88 

212 

186505 

24/B 


2«S4 

18010 

M/vaa 

an 

1038.19 

rav 

2f2S®0 

16/7(87 

53UB 

ass2 

24/1 

1790.10 

21/5 

WWW 

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A series of profits downgrades 
and a steep fall in the share 
price hit Next, the fashion 
retailers, despite better than 
expected profits and a much 
hi gher than Interim 

dividend. 

The stock price dropped IS to 
243p - its lowest level since 
July - on turnover of 13m 
shares, the heaviest daily vol- 
ume far more than three years 
and the hi ghes t on the stock- 
market list yesterday. 

The downgrades, mostly 
down to around the £S5m to 
£97m level, from previous lev- 
els of around £100, followed a 
cautious statement from the 
company on second half sales. 
It pointed out that sales in the 
last quarter of last year were 
particularly good. 

Waters wanted 

Water stocks continued to 
recapture some of their former 
gloss, with the sector to 
have been given a strong push 
by James Capel and other bro- 
kers after a period of relative 

stagnation 

Dealers said the institutions 
were still keen on the defen- 
sive, high yielding areas of the 
market 

The best individual perfor- 
mance in waters, albeit in light 
turnover, came from Southern 
which closed 10 higher at 573p, 
after 575p, closely followed by 
Thames, up 6 at 509p and Sev- 
ern Trent, the same amount up 
at 545p. 

Norweb continued its share 
buy-back programme, acquir- 
ing a further L5m shares at 
795p and boosting the stock 
price 4 to 790p. South Wales 
bought in 400,000 shares at 
817p with the price easing 2 to 
81 3p and Manweb edged up a 
penny to 833p after picking up 
lm shares at 835p. 

Northern Ireland Electricity 
returned to favour, closing 8 
higher at 370p. PowerGen cele- 
brated moving into its closed 
period by sliding 15 to 539p. 

The oil majors suffered a 
double hit, reacting to the 
weakness of the dollar against 
sterling and to a feeling that 


NEW HIGHS AND 
LOWS FOR 1994 

MWMOHBm. 

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the sector had been over-hyped 
before and after the much-her- 
alded exploration presenta- 
tions by BP in London and 
New York and the double-digit 
dividend increased announced 
by Shell on Thursday. 

BP dipped 7 to 413 1 />p. on 
turnover of 10m and Shell 12 to 
710V*p on 2.6m traded. Enter- 
prise fell 11 to 395p. Cal or put 
on another good showing, the 
shares edging up 2 more to 
299p, still reflecting the good 
results announced earlier in 
the week. 

Betterware, the group which 
sells domestic products direct 
to householders, was one of the 
market’s biggest casualties, the 
shares plummeting 23 to 50p. 
after 49p, in the wake of the 
latest profits warning. The 
group wanted that profits for 
the first half would not exceed 
£4m. compared with £7-6m in 
the same period last year. 
Betterware shares peaked at 


278p just over a year ago. 

News that summer 1995 holi- 
day bookings are up 42 per 
cent on last year’s figures, 
after a mouth's trading, gave a 
strong boost to Owners Abroad 
shares which jumped 7 to 119p. 

The news was delivered at a 
egm at which shareholders 
agreed a change of name, to 
First Choice Holiday. 

Aggressive price cutting on 
trans-Atlantic routes by Conti- 
nental Airlines of the US cast a 
cloud over British Airways, 
pushing the shares down 6V. to 
382'/,p. Trading volume was a 
massive 7m shares. 

Most brokers stand by their 
profit forecasts far this year. 
But the US market is clearly a 
key route for BA and analysts 
will be watching US airline 
price reactions like a hawk. 

Tiphook provided the only 
other big transport feature, 
easing a further 2 to 35p on 
confirmation that a bank- 
ruptcy petition had been 
served against chief executive 
Mr Robert Montague. 

The stock market Tears that 
Mr Montague’s personal stake 
in the company - possibly 
around 3 per cent - could now 
be overhanging a share price 
that has tumbled this year 
from a peak of 79p. 

British Aerospace shed 12 to 
473p in nervous trading ahead 
of next week’s interim results. 
The decision by Raytheon to 
switch to the US production of 
the corporate jet business 
brought from BAe last year 
added to uncertainties. 

BAe has less than two years 
left of a three year agreement 
to supply parts to Ratheon. 
With production moving away 
from the UK there are serious 
stock market doubts that BAe 
will be able to renew the busi- 
ness in 1996. 

Siebe continued to gain 
ground, rising 7 against the 
general trend to 557p with the 
backing of a buy recommenda- 
tion from Warburg Securities. 

Heavyweight pharmaceutical 
shares came in for markedly 
heavy selling with Wellcome 
tumbling 23 to 657p as the bid 
speculation that has hovered 
over the company since April 
showed signs of rapidly evapo- 
rating. 

Waning takeover hopes also 
hit Zeneca although analysts 
pointed to the company's 
strong operating fundamentals 
as helping to limit the down- 
side shift to 19% to 810'/a0p. 


■ CHIEF PRICE CHANGES 
YESTERDAY 

London (Pence) 

Rises 

BLP Group 190 + 10 

British Biotech 520 + T5 

HawtaJ Whiting 305 + 20 


Kwik-Fit 

160 

+ 

6 

Owners Abroad 

119 


7 

Ramco Energy 

256 

4- 

37 

Falls 

APV 

75 

- 

8 

Betterware 

50 

_ 

23 

Geest 

211 

- 

30 

Headway 

35 

- 

5 

Huriterprint 

3 Vt 

- 

3 

Kingfisher 

487 

- 

15 

Laing (J) A 

248 

- 

8 

Midland (nd News 

140 

- 

14 

Next 

243 

- 

15 

Watmoughs 

370 

- 

22 

Wimpey (G) 

145 

- 

7 


Its huge US market interest 
could only exacerbate the slide 
at Glaxo which tumbled 17 to 
5S4p. There was heavy turn- 
over in the stock options. 

Among smaller shares, Brit- 
ish Biotech moved up strongly 
by 15 to 520p on the hack of a 
buy recommendation from 
Lehman Bros. 

The major chemicals groups 
got caught up in the dismal 
trend. Having opened higher at 
852p, ICI quickly lost ground to 
dose 10Vi lower at 833'/ip. 

Among motor distributors. 
Kwik-Fit rose a further 6 to 
I60p as the market digested 
Thursday’s good interim 
results and consequent securi- 
ties house profit upgrades. 

Schraders left the rest of the 
merchant banking sector far 
behind, responding to talk of 
broker upgrades. The ordinary 
shares moved up 24 to 1574p. 
Other merchant banks, how- 
ever, mostly suffered from the 
recent turbulence in bonds and 
equities, which could have trig- 
gered losses among the big 
trading houses. 

Midland Independent News- 
papers were sold down to their 
March flotation price with the 
shares falling 14 to 140p on the 
back of a cautious interim 
statement. The recovery in 
advertising flows remains very 
patchy. 

Some analysts have been 
downgrading their profits pro- 
jections for the full year, nota- 
bly Smith New Court which 
has clawed tuck from £17m 
pre-tax. to £15^m. United News- 
papers, down 10 to 505p, put 
out their interim results next 
week. 


NOT1CE 

n tbe hoHcrs o! the ortstamQng 

U5irci.in.tftg 

fJtter Notes dm 1997 


Nocks is hereto P*ea to tte boMo* of tto 
Notes tbs • Resobatoo effected in «rridng 
execBtrd by or os betel/ of peooos hokbag 
or representing not less ihta 75 per cent in 
n Drains] idmii nr Lbe Notes ties 
ousunifiag was (My pareed oo !2Ui ialy, 
1994. 

Aocortiogfy a nd i fi ailtna to ibe Terns and 
CamSUons of socb Naos and the Tnat Deed 
pnaritelhg tbexn were note by meres of a 
Fifth Supplemental Trust Deed ■ Ibe lonn of 
the draft deed attached to the term of lbe 


Repip Enterprises tec 


17 September. 19W 





Sovereign (Forex) lid. 

24hr Foreign Exchange 
Magin lhidtag Fad&y 
Competitive Mew 

DaSy Fax Service 

lob 071-931 9188 
fax: 071-931 71U 


tendon 5WTW06E 


THE BUSINESS 
SECTION 


appears Every Tuesday & 
Saturday. 

Please contact 

Melanie Miles on 444 71873 
3308 or 

Karl LoynUm on *44 71-873 
4780 

or write to them ai Tbe Financial 
Times, 

Ok Southwark Bridge, 
London SEI9HL 


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financial TIMES 


weekend September 



21 


MARKETS 


* 


AMERICA 


Striking shift in US equity sentiment 


Wall Street 

US stocks retrenched yesterday 
rooming after troubling eco- 
nomic data triggered a sell-off 
in bonds, writes Frank 
UcOwty in New York. 

By lpm. the Dow Jones 
Industrial Average was 24.23 
lower at 3.929.65. having recov- 
ered from its mid-morning 

nadir of 3512.83. Though the 
index's decline was not partic- 
ularly deep, the NYSE’s down- 
turn was extremely broad in 
its scope. Declining issues on 
the Big Board swamped 
advances by a three-to-one 
margin, pushing the Stan- 
dard & Poor's 500 down 3.47 to 
471.34. 

In the secondary markets, 
the American SE composite 
was L06 lower at 458.68. and 
the Nasdaq composite shed 2.79 


to 775.87. 

The fresh turbulence sur- 
faced on a most inconvenient 
day. with futures contracts and 
options on individual stocks 
and indices set to expire. Dur- 
ing such “triple witching" ses- 
sions. the reinvestment activ- 
ity typically generates 
crushing volume and often 
brings volatile trading condi- 
tions. 

Yesterday was no exception. 
With three hours still to go 
before the close, some 285m 
shares were exchanged on the 
NYSE, compared with 280m by 
the end of Thursday’s session. 

After Thursday’s agg roon . in 
which the blue chip index 
climbed 58 points to within 
striking distance of its all-time 
closing high, the shift in senti- 
ment was striking. The cata- 
lyst was the commerce depart- 
ment’s announcement that 


capacity utilisation, a keenly 
watched barometer of producer 
prices, had reached its highest 
level in five years. 

The news, which contra- 
dicted Thursday’s evidence of 
moderating economic condi- 
tions. set off a stampede of sell- 
ers in the inflation-sensitive 
Treasury market. By early 
afternoon, the yield on the 
benchmark 30-year govern- 
ment security had broken 
through its recent trading 
range to reach 7.77 per cent 

The reaction among equity 
investors was more measured. 
Among the Dow components, 
most of the declines were frac- 
tional, though only two issues 
out of the 30 were showing any 
improvement Nevertheless the 
blue <*- hip rndgy battled back 
from its morning lows, aided 
by IBM’s $17< gain to $71%, 
while Alcoa contributed to the 


cause, adding $i to $86%. 

ITT climbed $1% to $81% 
after mufirmin g reports that it 
planned to sell some financial 
services operations as part of a 
strategic shift 

Elsewhere the movement 
was mostly negative. In the 
motor vehicle sector, General 
Motors dropped $ 1 % to $50% 
and Ford slipped $% to $28%. 

Calgon Carbon lost $1, or 
about 7 per cent of Its share 
value, to $12 after issuing a 
third-quarter profits warning 
after Thursday’s close. 

On the Nasdaq. Microsoft 
dropped $1 to $57% and Atmel 
was down $1 at $30%. 


Canada 


Toronto retreated in line with 
New York, the TSE 300 com- 
posite index easing 9.55 to 
075.91 in volume of 31.25m 


shares valued at C$536m. 

Declines outweighed 
advances by 266 to 250, with 
307 issues steady. 


Brazil 


Shares in S5o Paulo were 
easier at midsessian niter the 
central bank said that it had 
closed down one of the cairn- 
try's smaller private banks, 
Brasbanco, and its underwrit- 
ing operations. The central 

Han if said that Brasbanco had 
encountered liquidity difficul- 
ties. 

The Bovespa index was down 
171 at 52.7W at midday in turn- 
over oT R$356m ($41 6m). 

The bank’s closure followed 
earlier reports that some large 
state banks were having prob- 
lems with liquidity following 
the introduction of the new 
currency, the Real, in July. 


EUROPE 


Shares and bonds suffer severe punishment 


A mixed performance in the 
European morning turned into 


[ FT-SE Actuaries Sc; 

are -'indices 



Sop 16 

Hourly ctenges 

0pm 1030 

THE EUROPEAN SEFflES 
11X0 1200 13X0 14X0 15X0 dm 

FT-SE Euratrack tOo 
F7-SE Brandt 200 

1375.T7 1374.18 
(42052 14lan 

137X88 1388X0 135827 
142121 (416X7 141407 

136808 

1414X8 

135841 135891 
M06X7 T406L2S 


Sew 15 

Sap 14 Sep 13 

Sap 12 

Sap 8 

FT-SE Euroncfc 100 
FT-SE taebatfc 200 

1388X4 

1415X4 

1380X8 1367.41 

1401X5 141244 

1368X9 

141817 

1370X3 

1416X0 


Bra 1000 gVNHQ; rttftesr 180 - 1375.7% 200 - M2131 UMttv MO - 135725 a» - l«OJB t Mi 


a painful erosion of equity val- 
ues yesterday afternoon, writes 
Our Markets Staff. 

Domestic bond markets took 
severe punishment as US data 
showed industrial production 
and capacity utilisation at lev- 
els higher than expected. 

PARIS took the full force of 
the European selling wave. 
Having enjoyed a moderately 
good morning, after a strong 
overnight rise in the Dow. the 
CAC fell away sharply 
throughout the afternoon. 

Almost mirroring last Fri- 
day's performance, when the 
40 share index closed down 2.2 
per cent the market ended the 
day with a loss of 2.S per cent 
down 52.71 at 1,924.59, bringing 
its accumulated loss on the 
week to 1.2 per cent. 

Turnover was FFrtAbn. 

One or two bright spots were 
in evidence. St Gobain. for 
instance, picked up FFr13 to 
FFr655 following its greatly 
improved first half results, 
which exceeded analysts' 
expectations. 

Total, initially, was another 
gainer, rising to an intraday 
high of FFr338 before succumb- 
ing to the afternoon sell-off and 
closing the session down a 
modest 60 centimes at 
FFr331.60. The oil group, which 


rose 4 per cent on Thursday, 
has been benefiting from 
renewe d overse as interest 

FRANKFURT was pulled 
w efl off its highs during the 
official session by weak bonds, 
and it lost more ground in the 
post bourse as the December 
bund future hita contract low, 
and then foil further. 

The Dax index registered an 
early high of 2,138.65 but closed 
the session at 2.118.73, up 4.75 
on the day and down 3 per cent 
on ffie week. After hours, it 
slid to 2,097.45, a fraction above 
its worst for the day. 

There were encouraging 
moves on the session. Veba 
closed up DM4.10 at DM541.50 
on plans for a stake in the sat- 
ellite telecommunications com- 
pany, Iridium; and Preussag 
rose DM4 to DM459.50 after it 
said it was buying from Metall- 
gesellschaft a 85 per cent stake 
in file transport group, LMT. 
MetallgeseUschaft hit a new 


1994 low of DM167 .20 before 
closing DM6 lower at DM169. 
and defying the post-bourse 
slump with a token recovery to 
DM171 in the afternoon. 

MILA N received a boost from 
news of Montedison’s return to 
first half pre-tax profit, before 
the US news raised worries 
about higher inflation and 
interest rates. The Comit index 
put on 17.15 or 2.6 per cent to 
678.49 for a 2.4 per cent rise 
over the week. 

Mr Michele Pacitfi at James 
Capel said that renewed buy- 
ing was being seen in antirip a - 
tion of positive news from 
forthcoming half year corpo- 
rate reports. 

Montedison climbed L44 or 
3.2 per cent to L1.423, after a 
high of Ll.452, while Ferruzzi, 
the parent company, put on 
L68 to Ll.637. The mood spilled 
over to other industrials, tak- 
ing Fiat L90 ahead to L6.574. 

Insurers continued to do well 


on hopes that they will benefit 
from pension reform. Generali 
rose L825 or 2.1 per cent to 
L39.310 as it launched its one- 
for-10 rights issue. 

Against the trend, Olivetti 
gave up 120 to 12,060 ahead of 
first half operating results next 
Thursday which, some ana- 
lysts have forecast, could 
include losses on its bond port- 
fo lio o f at least Llbn. 

ZURICH came under pres- 
sure from lower US bonds and 
the weaker dollar, and the SMI 
index fell 25.3 to 2,6033, down 
1.5 per cent on the week. 

Roche certificates, under 
pressure on Thursday after 
Goldman Sachs removed thftm 
from its European recom- 
mended for purchase, list, foil 
another SFr90 to SFtS.960, in 
spite of news that BZW had 
confirmed its “strong buy" 
recommendation yesterday. 

Nestle fell SBT16 to SFrl^OO 
in response to Thursday's 
smaller than expected first half 
profit rise, although analysts 
remained optimistic for the full 
year result . 

AMSTERDAM breached the 
410 support level as the reper- 
cussions of US data made 
themselves felt and the AEX 
index declined 4.03 to 407.58. 
After a see-saw week's trading 
the index closed a net 1.3 per 
cent lower, with options expiry 


also adding to the day’s gloom. 

Brokers reported that the 
next support level was at 405. 

MADRID'S focus on bond 
markets took h anks lower 
a gain, the sector leading the 
way down with construction 
anij building materials stocks 
as the general index fell 3.23 to 
301.21, 1.3 per cent down on the 
week. 

In construction. FCC, Huarte 
and Uralita dropped Pta530 to 
Ptal2^60, Pta60 to Ptal.580 and 
Pta50 to PtaL535 respectively. 
In banks, up on Thursday on 
rumours of more relaxed rules 
an provisions for bond market 
losses. Argentaria lost Ptal50 
at PtaWlO and BBV Ptago at 
Pta3,145. Ironically, the Rank 
of Spain was reported to be 
moving on the provisioning 
initiative after the market 
dosed. 


Written and edited by WtlDam 
Cochrane, John Pitt and Michael 
Morgan 


SOUTH AFRICA 

A late rise in the gold price 
failed to lift gold shares on 
and they closed near the day’s 
lows, the index falling 22 to 
2.406. The overall index shed 9 
to 5,831, and industrials lost 2 
to 6.520. De Beers shed 50 
cents to R108.50. 


Portugal capitalises on 
potential for growth 

Peter Wise on prospects for equities in Lisbon 


P ortugal is the only Euro- 
pean market where the 
main stock exchange 
indices are currently higher 
than at the start of the year. 
That is the good news. 

Even better is the fact that 
the motor for growth has 
shifted from liquidity to eco- 
nomic and corporate funda- 
mentals. 

Funds flowing into equities 
because of the sharp drop in 
government debt rates pushed 
the BTA index up by nearly 60 
per cent in 1993 and to a two- 
year high of 3,226.6 in Febru- 
ary. The market fell back fol- 
lowing that peak an turbulence 
in the currency markets, to hit 
a year’s low of 2.612 in late 
June. 

But from then on the index 
gained ground - 1.9 per cent in 
July and a further 6.3 per cent 
in August as the escudo stabi- 
lised and economic and corpo- 
rate performance confirmed 
forecasts of a recovery. The 
index closed yesterday at 2JJ36, 
up 7.7 per cent since the start 
of the year. 

Trading volume for the first 
eight months of 1994 was also 
very strong, rising by 77 per 
cent in escudo terms over the 
same period last year, which 
itself followed a rise of 97 per 
cent in 1993. 

A partial explanation of the 
market’s growth over the past 
two years can be put down to a 
process of catching-up with the 
other European bourses after a 
long period of virtual stagna- 
tion. But prospects for strong, 
non-infiationary economic 
growth mid the expected bene- 
fits of corporate restructuring 
are beginning to take over 
from less stable factors as the 
drive behind the market. Ana- 
lysts are unanimously buoyant 
about Portuguese equities, and 
the most optimistic are fore- 
casting a further 15 per cent 
rise by the end of the year. 

“Portugal has the advan- 
tages of an emerging market in 
terms of high potential growth, 
without the economic and 
political risks associated with 
markets in Latin America and 
Asia," says Mr Trevenen Mor- 
ris-Grantham of Carnegie Por- 
tugaL 

The economy is thought to 
have begun emerging from 


recession in the second quarter 
of 1994. The government is 
forecasting economic growth of 
between 1 to 2 per cent this 
year, based mainly on 
increased export and tourism 
earnings. Next year's budget is 
being prepared on an estimate 
of 15 to 3.5 per cent growth in 
1995. 

Unlike most of Europe, the 
return to growth is being 
accompanied by a steady fall in 
inflation: year-on-year figures 
fell from 6.3 per cent in Janu- 
ary to 4£ per cent in August 

The government is forecast- 
ing an average annual infla tion 
rate of 4^ to 5.5 per cent this 

Portugal 

Indices tabued 

130 - 



year, down from 65 per cent in 
1993. But the 1995 goal of 3.5 to 
4.5 per cent may be over opti- 
mistic, especially as a general 
election is due in October 1995. 

Financial market tensions 
have also eased considerably in 
recent months: since the last 
speculative attack on the 
escudo in May, the curren c y 
has appreciated from a low of 
Esl04.5 to the D-Mark to 
Esl01.7 at present 

“Altho ugh improving funda- 
mentals partly explain the 
turnaround, perhaps the more 
crucial factor has been the 
markets’ acceptance that they 
cannot beat a central bank 
that persists in suspending offi- 
cial money-market rates at the 
first sign erf trouble,” says Ids 
Sally Wilkinson, southern 
Europe economist with Union 
Rank of Switzerland. 

A stable escudo and falling 
inflation have enabled the cen- 
tral hank to begin a cautious 
lowering of interest rates - the 


Intervention rate has been cut 
in gradual steps from u to 925 
per cent since July, two 
months after the currency cri- 
sis. 

With the liquidity injection 
rate remaining suspended the 
monetary authorities have con- 
tinued to lend through a vari- 
able rate repo system, which 
has been cut from 9.72 to 9.5 
per cent over the past few 
days. The central bank's deci- 
sion to lower the compulsory 
cash reserve requirement for 
banks from 17 per cent of cus- 
tomer liabilities to two per 
cent from November l will also 
help create a fresh climate for 
interest rate reductions. 

And there is ample room for 
more cuts. Portugal's 
short-term rates are more than 
200 basis points higher than 
Spain's, although inflation in 
the two country's is almost 
identical. But analysts expect 
the central bank to halt rate 
cuts as soon as there is any 
indication of renewed attacks 
on the escudo. 

T he recession in 1993 has 
given Portuguese com- 
panies the incentive and 
opportunity to streamline and 
refocus. “Companies are now 
in a much better position to 
take advantage of a resump- 
tion in economic growth and 
produce higher profits,” says 
Ms Mari Vargas of Dillon Read. 

Two half-yearly results 
announced last week reflect 
this confidence. Sonae, Portu- 
gal's largest private-sector 
industrial and distribution con- 
glomerate, reported a 110 per 
cent increase in net consoli- 
dated profits, while Corticeira 
Amorim, the world's largest 
cork producer, showed a 289 
per cent increase. 

Half-yearly bank results 
were also better than expected. 
Some analysts are now fore- 
casting a recovery for the 
banking sector, which 
accounts for more than half 
the market turnover, by the 
end of 1995. Banco Comercial 
Portugufe’ bid for control of 
Banco Portugu&s do Atl&ntico. 
although vetoed by the govern- 
ment, has shown that there is 
a drive towards rationalisation 
and cost-cutting in banking as 
in other areas of the economy. 


ASIA PACIFIC 


LONDON EQUITIES 


Region revives as Nikkei gains are eroded 


Tokyo 


•ofit-taking and arbitrage sell- 
g depressed share prices in 
w volume after Thursday’s 
)liday. writes Emiko Terosono 
Tokyo. 

The Nikkei 225 index closed 
wn 123.12 at 19,796.26 after a 
gh of 19,972.59 and a low of 
1 795.26, for a week’s loss of 
i per cent. The index rose in 
e morning session on index- 
ikcd buying prompted by the 
ranger dollar against the yen 
nl the sharp rise in US stock 
ices on Thursday. 

However, position adjust- 
ents ahead of the weekend 
id profit-taking by corporate 
vos tors eroded the gains. 
Volume was 251 m shares 
gainst 255m. The Topix index 
all first section stocks 
•dined 7.75 to 1.576.21, and 
le Nikkei .wo lost 1.29 to 
7.95. Declines outnumbered 
I vances by 700 to 367, with 
9 issues unchanged. 

In London, the ISE/Nikkei 50 
dex slipped 0.20 to 1.2SS.29. 
Mitsubishi Heavy Industries, 
e most active issue of the 
iy. fell no to Y743 on selling 
; overseas investors. Other 
rge capital issues were also 


^-ACTUARIES WORLD indices 


actively traded with Nippon 
Steel down Y1 to Y376 and 
NKK down Y4 to Y275. 

Matsushita Electric Indus- 
trial lost Y20 to Y1.600 on wor- 
ries about oversupply. The 
company is expected to raise 
some Y200bn in convertible 
bonds next month. 

Other high-tech stocks were 
also weak in spite of the rise in 
the dollar. Hitachi fell Y8 to 
Y956 and NEC lost Y30 to 
Yl.170. 

Speculative favourites were 
higher. Hanwa, the steel 
trader, rose Y24 to Y434 and 
Sanrio added Y40 to Y1.470. 
Tsumura, the pharmaceutical 
company which previously lost 
ground on reports of lower 
profits, gained Y40 to Y327 on 
active buying. 

In Osaka, the OSE average 
fell 154.04 to 22.000.57 in vol- 
ume o f 58.1m shares. 

Roundup 

The region's equity markets, 
flat to middling on Thursday, 
mostly revived following over- 
night gains on Wall Street 

KUALA LUMPUR saw heavy 
speculative buying and some 
institutional demand in key 
blue chips, and the KLSE index 


rose 9.21 to a new, eight-month 
closing high of 1,18527, a frac- 
tion higher on the week. 

Volume rose from 450m 
shares to 506m. Idris Hydrau- 
lic, a speculative favourite, 
climbed 35 cents to MS5.75 in 
21.5m shares. 

SEOUL closed above the 
L 000 mark for the first time 
this year as blue chips staged a 
technical rebound. The com- 
posite index rose 12.05 to 
1,000-80. up 1.6 per cent on the 
week. Turnover eased from 
Won883.4bn to Won73S.lba 

Brokers said that the govern- 
ment appeared to scale down 
selling intervention in later 
trading, resulting in upbeat 
buying interest in blue chips 
like Kepco and Korean Air; 
both went limit-up. rising 
Wonl ,300 to Won35.800, and by 
WonLOOO to Won26.600. 

HONG KONG was revived by 
late buying which left the 
H a n g Seng index 105-68 higher 
at 9,968.52. down 1.7 per cent 
on the week, as turnover rose 
from HK$3.44bn to a provi- 
sional HKJ3_92bn- 

Jardine Matheson was 
active, gaining 25 cents to 
HK$74-50 in turnover of nearly 
HK$296m; but its subsidiary. 
Dairy Farm, which late on 


P*id te Thu Fmanaol Timm Ltd.. Gottivw. Sacte & Co. and NotWest Securities 

— Z^ YSBrT ^' S S'^r 

- a ■s’tt’sg- 


Ud. in contuncten with the institute of Actuaries and the Faculty of Actuaries 


Grass 

Wv. 

YMd 


— WEDNESDAY SEPTEMBER 14 1994 — DOLLAR INDEX 

US Pooid Local Year 

Dotar Sterfrig Yen DM Currency 52 week 52 week *9° 

httot Index Index Index Max Hjgft Low (espm*l 


(U| .. 

ii . • 

V»l .. • 

in . 

am dVI 


... 1:4.00 

. 11C.45 
. 170 82 
.137 S4 
. 25503 
17009 
... 173.98 
... 145.09 
405.52 
.. 211 54 
..... Bi n 
. 159.35 
.582 84 
. 2280.58 
.^21507 
„_72fl8 
.. 199 60 

...903 7? 
. 308.71 
142 43 
...22927 
...,167.21 
I9S.41 

. tsuas 


0.6 

-08 

-0.7 

OX 

O.l 

-0.7 

0.4 

- 1.1 

0.4 

-0.3 

1.9 

-0.5 

0.4 

ix 

-0.3 

- 1.1 

-24? 

-06 

-0.3 

0.9 

afi 

-1.Q 

07 

1.3 


165.07 

182.49 

161.90 
13071 

mix* 

168.88 

i64.es 

137.58 

384.55 
20080 

77.51 

151.11 

552.69 

2162.58 

203.95 

S9.11 

109L28 

344.90 
292.74 
13507 
217.41 

158.56 
188.14 
183.63 


7481 

1-llW - 

lK1| 

, i.s14>..,. 

Lin i 279 > 

,16471 

ri*j«n - • ■ 
A t ciow 

jn (tCtftl ■ 


. 173.12 
.. 221 03 
. 169 7J 
.171.04 
.1911.19 
155.65 
.269.56 
.172.89 

176 82 

177 91 
.190 38 


0.2 164.16 

02 2CB.59 

-0.4 16098 

-0.1 162.19 

12 18035 

-01 147.80 

00 25562 

-C 1 16394 

OX 167.67 
3.4 168.70 

0.7 18110 


188-48 


109.36 

136.96 

15877 

0.1 

3X2 

173.13 

163.84 

108X1 

138X8 

155.65 

188.15 

139X4 

139X4 

190 QO 

15475 

154.93 

-04 

1X3 

194.10 

18845 

121X1 

155.14 

15&49 

1S869 

164.64 

17075 

lav-W 

1Q7 

137X6 

134.17 

-0.1 

4.12 

171.95 

162X1 

107.47 

137.43 

134X8 

177.04 

143X2 

152.92 

IVJ 1 

fm u 

110.84 

135.11 

0.7 

248 

137.07 

129X5 

65X7 

109.56 

134.13 

145X1 

12854 

123X6 

160-21 

205.07 

211.96 

87 

1.40 

254X7 

24889 

159X9 

20171 

210.59 

275.79 

223X4 

230.01 

110.&S 

141.51 

184X0 

-0.1 

0.76 

177.19 

167.47 

110.7S 

141 XS 

164X7 

161.70 

104X8 

10987 

1 0£L29 

139X0 

144.43 

IX 

3X5 

17825 

163-75 

10828 

13848 

142.97 

IBS 37 

159X4 

159X4 

91.16 

11867 

11867 

-OX 

1.76 

14874 

13870 

91.72 

117X9 

117X9 

15840 

124X9 

127X3 

PS17S 

326X9 

402X9 

84 

3X4 

403.90 

381.75 

252.44 

322X3 

40869 

M856 

292X8 

296-40 

132.B9 

170.11 

19318 

80 

3X0 

212X4 

20860 

132.65 

16SX4 

19810 

21860 

161X4 

171X4 

Si .35 

65.72 

95X3 

1.9 

1.63 

6023 

75.83 

50.15 

64.13 

9175 

97.78 

57.88 

77.46 

100.11 

128.14 

100.11 

80 

875 

16817 

161X8 

10811 

12802 

10811 

170.10 

134X4 

156X6 

386.14 

46&6S 

573X6 

OX 

145 

58836 

546X3 

362.73 

463X8 

570.54 

621.63 

382.03 

397.36 

1432.64 

1833.B3 

6508.96 

IX 

121 

225037 

2126.92 

140848 

179866 

moBBa 

2647X8 

161811 

170023 

13S.11 

172.65 

17036 

OJ 

3J6 

216.70 

20887 

134 82 

172X1 

169.78 

21819 

160X5 

103.71 

46.78 

56X0 

64.11 

-1J 

3.73 

7868 

60X4 

46X5 

58X9 

64X6 

77X9 

4ft W 

60X1 

125_39 

160.50 

183X8 

-1.7 

1X0 

204X8 

192X8 

127X5 

163.11 

187.12 

211.74 

165X2 

17833 

228.49 

29246 

24846 

-86 

1X9 

365X7 

345X1 

228.67 

292.44 

25895 

37092 

2S5.ST 

28001 

13333 

24824 

29825 

-87 

2.14 

30874 

292.75 

193X9 

247.57 

301X7 

314X4 

183.14 

183.14 

89.48 

114.53 

138X3 

1.4 

4.16 

141.09 

133X5 

8818 

112.77 

13853 

155.79 

12188 

137.76 

144.03 

184X6 

254,16 

85 

1.57 

227.4/ 

214.99 

142.17 

181.81 

2S2.86 

231X5 

17083 

187.65 

105.04 

134.48 

133.11 

-OJ 

1X2 

168X2 

156X5 

105X7 

135X1 

133X7 

17S.56 

136X9 

137.63 

124.54 

15855 

18814 

IX 

4X0 

197.06 

186X5 

123.17 

157X1 

188X5 

214X8 

161.11 

188X7 

121 £5 

155.72 

193X5 

1J 

2X0 

191X5 

18876 

119.53 

162X6 

191X5 

195.84 

178X5 

158X8 

106-75 

139X1 

15856 

86 

3X2 

172X4 

163X6 

106X3 

13815 

152.66 

176.58 

153X9 

15813 

138X5 

177.73 

21023 

83 

1.41 

228 B4 

20854 

137X0 

176X5 

200.64 

222.03 

17819 

178.63 

106.63 

13849 

111.42 

80 

1.06 

170X8 

161X4 

10849 

13819 

11138 

17686 

134.79 

160X6 

107 45 

137X4 

12819 

83 

1.91 

171X0 

161X0 

107.05 

13891 

127X5 

175.14 

141S8 

1S9X9 

118.47 

152. S3 

18962 

12 

2.70 

167X8 

177X7 

117.43 

150.17 

187X0 

192.73 

175X7 

104.59 

97.76 

125.18 

133X3 

83 

2.44 

155X8 

147X3 

97.42 

124.55 

132X6 

35812 

134X7 

138X4 

10934 

21876 

239X4 

82 

2.70 

28877 

254.03 

167X9 

214X3 

239.06 

29821 

200.13 

200X9 

10861 

136.02 

132X9 

83 

1X2 

173X9 

163.59 

108.15 

13834 

131.72 

176X5 

145X9 

15066 

111.08 

142.1 B 

147 JO 

85 

2.04 

17823 

166X6 

11814 

140X5 

14844 

17859 

155.66 

166X9 

111.76 

143X6 

14092 

85 

223 

177X4 

167X2 

11877 

141X6 

14897 

18803 

159X4 

16833 

119,97 

153X7 

181.17 

ox 

2X3 

169.59 

179.19 

11850 

161X4 

179X8 

195X0 

174.04 

176X2 

11i2B 

14372 

151X2 

OX 

223 

17807 

168X0 

111X0 

14233 

15808 

1B860 

15&3S 

16030 


LIFFE EQUITY OPTIONS 


RISES AND FALLS 


Thursday announced higher 
profits and said it would cancel 
its Hong Kong listing, fell SO 
cents to HKS1L60. 

WELLINGTON was led 
higher by Fletcher and other 
blue chips, the NZSE-40 index 
ending 18.67 higher at 2,11L67, 
£2 per cent lower on the week. 
Fletcher rose 12 cents to 
NZS4.41 in 5.3m shares 

SINGAPORE was steered 
higher by last minute baying 
of two key index-linked stocks, 
Cycle & Carriage and Keppel, 
which left the Straits Times 
Industrial index up 16.34 at 
2397.18. virtually flat on the 
week. Cycle and Carriage 
jumped SO cents to S$13.30, 
and Keppel 40 cents to 
S511.70. 

BANGKOK was unable to 
break resistance at 1,550, the 
SET index rising 12.20 to 
1,546.24, 5L5 per cent higher on 
the week in turnover of 
Btl0.4bn. Trade focused on 
blue-chip telecommunications, 
finance and hanking stocks. 

SYDNEY failed to maintain 
an early rally as anxiety over 
pending US capacity utilisation 
figures dogged the market The 
All Ordinaries index ended 
only 8 l 2 higher at 2,059.0, 0.6 
per cent Lower on the week. 


Optan 


Cafe Puts 

Oct Jn Apr OO Jan Apr 


AffaMyon 540 40M - - 5 - - 

TS72 ) 589 lift - - 26 - - 

280 19* 27 34 Bft 13ft 19 

300 Bft IB* 34 16ft 24ft 29ft 

60 0 10U 12 2 3H 4H 

70 Zft 5 7 6ft Bft 9ft 


Raw 
na i 

OpBon 


No* Ftli My No» Fob May 


Bril AffO 460 33K49M 58 22 31 40 
(■<72 ) 500 16ft 30% 40* 45* 55 63 

BN tads 390 37 49 54 7ft 15H 21 

("412 ) 420 18ft 38ft 38 19ft »!* 35 

BTR 300 28 37 42 5 9 MH 

(*321 1 330 12ft 20 Z7» 19 23ft 30 

MTtonn 360 S2ft94M59tt 1b S Bft 
(*316 ) 390 10* 15* ZEft 20ft 29ft 32ft 

CUliySa 460 17 29 34ft 19 25 33 

(■460 ) 500 5 14 1B» 50 52ft 59 

ban Sac 7MS2ft7tft B 5 28ft Sft 48* 
(-766 ) 800 28 47 GO 54 67ft 75 

SuSnrac 420 48 S3 68ft 4ft Bft Mft 

r*SB ) 460 IS 29ft 3S 18ft 25 31ft 

EEC 280 16ft 22ft 2814 7 lift 12li 

(■08) 300 BH I3Jt 19 17ft 22 24 


Anjji 

rao) 

ASQA 
r® ) 

BNAkwap 360 J 1 ft 40ft 50 4ft 13 17 

HR I 390 Uft 73ft 34 16ft 26ft 31ft 

SriBBtfmA 420 22ft 3S 4Zft lift 2127ft 

f 42? ) 480 8 15ft Mft 3B 45 51 

Bools 500 36 45 56ft 5 14ft 21 

CS28 l 550 7ft 18ft 22 29ft 40ft 46ft 


390 82ft 41ft 88ft 4ft 10 15ft 
420 12ft 24 32 15ft 22ft 29 
140 17 KM 24ft 2 5ft 7 
(GO 4ft 9H 13ft 10H 1<H 16ft 
500 56 83ft 88 3ft 14 18 
530 18ft » 38ft 18 35ft 41ft 


BP 

f413) 

BMS 

nai 

Bass 

CW7) 


QEIM 390 S 37ft 48 10 20ft 3ft 

C40Z | 420 lift 24 3* 27 37 Oft 

Coottaulds 460 31 41ft 53 6 17 23 

r«1 ] 500 9 21ft 32 27 38 44 

Cm Urtoo 493 32ft 48ft 54 6 13 24 

(*515 ) 543 7ft a 28ft 32ft 38ft 52 

K3 800 B2ft 75 87ft 8ft 24 36ft 

(-236 | 850 22 48 BBft 30 44ft 61 

Kingfisher 460 33 49 60ft 8ft 17 24 

(■486 ) 500 14 Kft 40 2Bft 3Bft 43 

Uni Seen 600 23 a 47 Bft 13ft 24ft 

(-608) 650 4 12ft 34 45 52 54ft 

Mans 6 S 380 25 33 42 5 lift IS 

r«C7 I 420 8ft 17ft 26 19 26 29ft 

ttaNtoSt 480 36ft 51 58 B IB 25 

{*485 ) 500 14 28W 38ft 25ft 33 46 

Satatuy 420 28ft 38ft «* Bft 18ft 24 

(-437 ) 460 7ft 1S» 30ft SB 40 45 

Sa Trars. 700 19 36ft 46 16ft ZB 36ft 

(711 ) 750 4 15ft M 54ft SBft 68 

anu 200 Bft 14ft 10ft 7 lift 15 

CKO ) 220 Zft 6ft 10ft 22 24H 28 

Totes* 80 12 14ft 16ft 2 4ft 5 

(-89 ) 90 4 8ft 11 5ft Bft 9ft 

1100 48 84ft 85ft 15 32 47 

(-1123 115018ft K 58 41 58 72 

am BOO 33ft 57ft at I5 25ft41ft 

{■813 1 850 12 32ft 44M 45ft 62ft 69ft 

(Won Ha* Fte Bay Urn FeD Iter 

Grad IM 390 3Bft 44ft SDH 9 16 19ft 

(*413 ) 420 18 27 34 21ft 30ft 34 

Ladtnfee 140 H 28ft 29 3 5ft 9 

(158 ) 160 9 16 10ft 9ft 15 19 

IMBfscdb 300 S 30ft 9Sft 7ft 13 21 

(-315 ) 330 7H 16 21 25ft 29H 38 

(Won tea Dec Mr S«p Dec Mm 

120 6ft 12ft 16 3 8 10ft 

130 3 8 lift 8ft 14 18 




_ 

Cafts 

— 


Purs 

_ 

Opbon 


dot 

Fab 

**y 

NW 

h® 

llay 

Hanson 

240 

lift 

15ft 

w 

8ft 

13 

17 

C240) 

260 

4 

7E 

n 

22 

26 

29 

Lasrro 

154 

13ft 

— 

- 

7ft 

- 

_ 

rise) 

180 

4 

7£ 

lift 

27 

28ft 

30ft 

Luces Ms 

ISO 

14 

18ft 

23 

8ft 

12ft 

18 

(*187 I 

200 

5ft 

ID 

14 

22ft 

25 

28 

PAD 

650 

27ft 

« 

BBft 

28 

38 

53 

(-659 | 

700 

10ft 

23 

34 

64 

70 

B3 

Ptehgtra 

180 

18ft 

21M 

23 

5 

8ft 

lift 

(*190 ) 

200 

7 

12 

16 

1S» 

19ft 

22ft 

Prutena 

300 

17 

MK 

29 

Tift 

16 

22ft 

rJOBi 

330 

5 

11 

15ft 

31 

34 

41 

RT2 

850 

44 

GB 

77ft 

24 

36 

53ft 

r867 J 

900 

19ft 

41ft 

54 

53ft 

64 

BOft 

HH*ar« 

500 

23 

36 

45ft 

23 

ZSft 

44 

1*503) 

BO 

6ft 

17 

2Sft 

BOft 

63 

77 

Hojor race 

350 

29 

37 

41ft 

7ft 

12 

10 

r27B ) 

280 

17 

26 

31 

15 

20ft 

28 

Taaco 

240 

16ft 

23 : 

27ft 

8 

13 

17 

(*248 ) 

260 

7 

13ft 

19 

19ft 

24 

zm 

Voddora 

163 

13ft 

W 

— 

8 

12ft 

— 

HB6) 

200 

6 

10 

15ft 

18ft 

32 

24ft 

WBars 

325 

24 

— 

ra 

Bft 

— 

- 

r33B) 

364 

8ft 

- 

- 

22 

- 

- 

Option 


Oct 

ten 

tor 

Od 

Jan 

Apr 

BAA 

475 

24 

32 

43 

7ft 

15ft 

IB 

T484 ) 

500 

9ft 

19: 

28ft 

30ft 

28 

31ft 

tteraeaiw 

500 

23ft 

34 

42 

lift 

25ft 

2B 

rm ) 

550 

4ft 

15ft 

22 

45 

57 

SB 

Opoon 


S*P 

Dec 

Kar 

S«P 

Dec 

Mr 

Atoey Nad 

300 

13ft 

28ft 

36 

Bft 

14ft 24ft 

r»5) 

420 

13ft 

14 : 

21ft 

28 

32 

42 

Amraai 

30 

2 

3ft 

4ft 

1ft 

3ft 

4M 

no » 

35 

1 

2 

Zft 

6 

7 

8 

Baxtsya 

55 0 

39. 

SBft 

0B 

T» 

K. 

31ft 

(*585 ) 

800 

5ft 

27 

41 

19ft : 

33ft 

46 

Blue CMe 

280 

10ft 

22 

30 

5 

13ft 

IB 

!*=87 j 

300 

3 

131 

20ft 

20 

25ft: 

30ft 

Britan 6 k 

280 

ZOft 

24ft: 

lift 

1ft 

8 

13ft 

C297 ) 

300 

5ft 

14ft! 

21ft 

Bft 

18 

22 

Otters 

180 

18 

24ft 

ZB 

1ft 

7ft 

12 

H83 ) 

200 

3 

13ft 

17 

Bft 

17 

22 

HisdOMi 

180 

5ft 

lift- 

17ft 

5 

10ft 

12 

nw) 

200 

1 

4ft 

9 

31ft 

25V 

Kft 

UbhI® 

130 

6 

13 

16 

3 

7ft 

lift 

(*133 | 

140 

2 

8 

12 

B 

13ft 

17 

Not Ptraer 

460 

». 

14ft 45ft 

4» 

18ft 

2S 

1*472 ) 

500 

3 

1BZ7M 

30 . 

40ft 

46 

Scot Pom 

360 

23 

38 44ft 

2ft 

13 

16 

n7B ) 

390 

5ft 

22 29ft 

16 : 

Kft 

31 

Scare 

HO 

7 

9 

13 

IK 

4ft 

6 

ms ) 

120 

1ft 

5 

8 

Bft 

10ft 

lift 

RUB 

Z20 

7 

14ft 

21 

4ft 

12ft 

IB 

r222 ) 

240 

1ft 

Bft 

12 

19ft 

28 28ft 

Tamac 

140 

6 

13 

IB 

4 

10 

14 

H41 ) 

in 

1ft 

B 

8ft 

21 

28 

28 

Xm aa 

1050 

3ft 

32 

48! 

52ft 65)4 80ft 

noao 

1100 

1 

17 

31 

101 

105 

116 

T38 

200 ; 

zoft : 

8ft 

31 

1 

3 

9ft 

f218 J 

220 

5ft 

14 

18 

Bft 

13 

18 

Tookkc 

220 

lift 

21 

a 

3 

6 

13 

(-2Z7 ) 

240 

Zft 

11 

16 

14ft 

19 23ft 

HMIans 

650 ; 

20ft 

968ft 

lift; 

53ft 

46 

rsss) 

700 

3ft 

a 

48 ‘ 

57ft 

62 

73 

opted 


oet 

Jan 


OO 

Jan 

AH 


550 

37 

51 69ft 1 

15ft 

28 41ft 

nw ) 

BOO 

Bft 27 ft 

40 

47 

57 

70 

mtseds 

700 

40 07ft 

87! 

23M 

42 raft 

(*713 1 

750 

10ft 45ft 63ft 

52 

ES 

94 

Reuters 

4631 

Wft 

-re 

- ' 

1DK 

- 

- 

f472) 

475 

17 

- 

- 

16 

- 

- 

Opbon 


Hot 

Fab 1 

*»r 

Nw 

Feb 1 

fey 

F»4te|W 

180 

12 1 

18ft 28ft 

Bft 

14 17ft 

nsoj 

200 

5 

8ft 12ft 

2* 2fift 

30 | 


- UnOBrtpna searlty price Pranwna storm are 

bood en tfta price*. 

Sapttmaer JS. Total connacU. 52M03 cats: 
14,848 ME 37.759 


FT GOLD MINES INDEX 


Sap * ttfl Sep 
15 an Oaf M 


Ste 


Year boa db 52 
ago shad N W& la* 




IMML 1087 


MMBlMn 

■ MOWN Indies 
Mfca(lfl) 
teaman (B) 

NHI testa (12) 

Capyrae. Hi • Rrarcfai limn Uwid IBM. 

Rgures a bredats show number el canywniea. Bass L«S DoOn. Ba» Vtfcass 4000.00 31*2/02. 
P mae caaa a Gofca Mhn ritec Sep 1ft 273.7 : da/s cmuqb; -0l6 pohs Year age: '»1 T PareaL 
i-iyff «v$ ifoaulB tar Kits edaon* 


Z1B101 

-tx 

2183X6 2187X8 159046 

1X0 

2357X0 1SBMS 

3407X3 

-07 

3431X6 3362.08 2117.44 

4X3 

3487X6 2117.44 

2692X4 

-1.1 

2722.43 2791.49 175057 

1X5 

3013X9 1756X7 

171037 

-TX 

173507 175X05 1427X1 

an 

2BSX5 7427X1 



Rises 

n Friday 

Fata 

Berne 

( 

Rises 

Jn the week 
Fans 

Srane 

British Finds 

0 

68 

2 

109 

206 

35 

OBisr Fixed merest 

0 

4 

11 

3 

8 

64 

Miners Extraction 

' 30 

77 

91 

218 

335 

437 

General Manufacturer* 

94 

209 

351 

421 

997 

ixce 

Consumer Goods 

23 

66 

98 

139 

281 

515 

SeretOM 

60 

142 

297 

318 

067 

1.514 

Uffittes 

IB 

14 

12 

62 

112 

51 

Hnancfab 

23 

163 

180 

308 

594 

926 

Investment Trusts 

38 

211 

217 

243 

848 

1X43 

Others 

51 

34 

19 

209 

223 

91 

Totals 

328 

988 

1X78 

2,030 

4271 

6.880 


DMa bwd on thoaa oon^sentas Mad on rtm London Shore Sorvtoa. 

TRADITIONAL OPTIONS 

First Oaflfnfp September 12 Expiry 

Last Deelogs Beptan*er23 SeWamar* 


December 0 
December 22 


Calls: ABnnce Rea, BteafeM Toys, Qeeat. Qnrenwtch Rea, Hanson Wts. Mil. Prat, 
Next, Nutrfde PMherianda). Proudfoot. Rodlnw, Roxbora, Stylo, Tbi i la y Robor. 
ftps & CaBe Greenwich Rea. 


LONDON RECENT ISSUES: EQUITIES 

ton* Arm MkL Close 

price paid cap IBM price 

p up (Emj Wflri Lear StocX p 


Net 

dN. 


Dtv. 

cm. 


Ore WE 
yU im 


_ 

FJ>. 

19X 

69 

78 Bob) Q Shn Wrts 

78*2 


_ 

a. 

- 

_ 

100 

F.P. 

102 

102 

95 Beacon Inv Tat 

96 


- 

- 

- 

- 

- 

FX. 

152 

48 

39 Do. Warrants 

40 

+1 

- 

- 

- 

- 

- 

F.P. 

1X0 

Ife 

1 Conti Foods Wrts 

IV 


- 

- 

- 

- 

120 

FJ» 

21.4 

120 

118 Independent Parts 

120 


LN4-D 

13 

4 2. 

22.1 

- 

FJ». 

_ 

77 

58 JF FI Japan Wits 

58 

-2 

- 

- 

- 

- 

- 

FJ>. 

203 

87 

35 4*tognum Power 

63 

42 

- 

- 

- 

- 

23 

FJ». 

10X 

31 

29 Orbs 

29 


- 

- 

- 

- 

ra 

FJ». 

0X0 

17 

5*2 Partner Wits. 

17 


- 

- 

- 

- 

ra 

FJ». 

0X2 

40 

26 Peoocettic 

26 


- 

- 

- 

- 

- 

FJ>. 

3X5 

44 

33 Suter WR9 saw 

33 


- 

- 

- 

- 


F P. 

111 

212 

192 Templeton E W 04 

211 

48 

- 

- 

- 

- 


F.P. 

2 X2 

35 

29 Tops Eats Vftta 

29 


- 


“ 

- 


RIGHTS OFFERS 

issue AmouM Latest 
price peid Renun 
P up date 


1994 

High Low 


Stock 


Globing tor- 
price 

P 


476 

M 

4/10 

69pm 

46pm 

Cummer®! Union 

46pm -5 

380 

IW 

21/tO 

40pm 

16 pm 

EMAP 

18pm -4 

252 

NO 

11/11 

34pm 

19cm 

war 

16 pm 


FINANCIAL TIMES EQUITY INDICES 

Sup 18 Sep 15 Sep 14 Sep 13 Sep 12 Yrago 


-rtgh ‘Low 


Ordinary Share 238a 1 24202 2397.4 2426.5 2425 3 2331.0 27134 2240.6 

CW, (0V. yield 4.30 4.24 4^9 424 424 3.99 <48 3.43 

Earn. yld. * fill 6.13 6.04 6.11 004 6^4 4.68 6.13 182 

P/E ratio net 17.41 17.88 17.47 17.68 17.68 27.19 3343 17.41 

P/E ratio /ft 18 l28 1R05 16L28 7827 25.10 3000 1100 

Tor IBM. CRUmry Shv« Mar m c orr yla atyt high 27134 2/0294; km 4M 26J6M0 
FT (Mrary Ohara Men base eta 1/7/35. 

Ordnery Sham hourly changes 
Open &00 10X0 11X0 12X0 


13X0 14X0 15J00 16X0 High Low 


944&0 2434.4 2421.8 2427 JB 24129 24103 24105 23939 2394.8 2443.0 23383 
Sep 16 Sep 16 Sep 14 Sep 13 Sap 12 Yr ago 

SEAQ bargains 24.749 24238 24X12 Z5.CS3 27X05 34X95 

Equity turnover (Cm)t - 11608 1237X 1163.7 1074.9 1881.1 

Eqftiy harganst • ZTJBSB 26,700 27X28 29X12 37X03 

Shares traded (nflf - 521 X 47?X 4802 4127 7303 

tExduiSng Marrartnt buftnera end onereq ee amwr. 


THE TOP 

OTTOKItJNraES SECTION 

for senior management positions. 
For advertising information call: 
Philip Wrigley 
+44 71407 8733351 



























































FINANCIAL TPy itTfi Vircn-tr 

weekend September i 7 /september is 1994 


LONDON SHARE SERVICE 


Bfchrd Han u 

EnwOfOnW-JE 


a 




tu 

- 3GL9 

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123.1 

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VSI 

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153 

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127 

38U 

195 

848 

US 

2148 

a 

33.7 

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7U 

49 

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187 

3BJ 

143 

BJJ 

1% 

118 

125 

7J7 


IM V 

Z9 17i 

OB 

415 

SB 

* 

28 

| 

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587 


95 

38 

420 

25 

10.1 

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158 

78 

11.7 

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227 

18 

305 

29 

252 

18 

315 

25 

108 

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208 

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1994 


tow 

14. 

97 

754, 

110 

n 

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107 

11 

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210 

183 

48 

30 

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70 

13 

y. 

42 

S3 

225 

ibo 

471. 

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55 

157 

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227 

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98 

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24 


iWorld 
l Leader 
| in rolling 
% bearings 


FINANCIAL TIMES 

Weekend September 17/September 18 1994 


brother 

TYPEWRITERS • WORD PROCESSORS 
PRINTERS • COMPUTERS • FAX 


US officials rule out third party mediation with military junta 

US-led Haiti invasion ‘days away’ 


THE LEX COLUMN 


By Jurek Martin in Washington 

The US-led Invasion of Haiti is 
now "a matter of days away" 
and, when it comes, serious fight- 
ing will be over “in a matter of 
hours", according to Mr Warren 
Christopher and Mr WiUUun 
Perry, respectively US secretaries 
of state and defence. 

US president Bill Clinton, 
whose televised address to the 
nation on Thursday night had 
laid out his justifications for 
intervention, yesterday cancelled 
a political trip to California 
scheduled for tomorrow. 

Mr Perry said US forces would 
be ready by the weekend and 
could main tain that state for sev- 
eral days. 

Washington was alive with 


rumours that one or more of the 
Haitian military junta was pre- 
paring to leave the island. But Lt 
General Raoul Cedras, the army 
chief who was interviewed live 
on US TV after the president had 
finished, said he was prepared to 
die for his country. 

US officials ruled out third 
party mediation with the junta, 
reported to have been offered by 
Mr Edward Seaga. the former 
Jamaican prime minister, and Mr 
Jean-CIaude “Baby Doc" Duva- 
lier, the dictator overthrown in 
1986. Any dealings with the 
regime would be handled by the 
US embassy in Port-au-Prince 
and these would only include 
negotiations about the manner of 
their departure. 

Mr Clinton held a meeting yes- 


terday with Jean-Bertrand Aris- 
tide. the Haitian president ousted 
by Lt Gen Cedras in the 1991 
coup, and representatives of 
more than 20 nations which are 
contributing to an international 
peacekeeping force that will take 
over after the US invasion, 

Mr Aristide. In a significant 
concession to conservative critics 
of his left wing politics and char- 
acter. promised to step down 
when his term of office ends late 
next year and to respect the 
result of the next presidential 
elections. 

Although the Haitian constitu- 
tion prevents him from seeking 
re-election. Mr Aristide had main- 
tained that the clock should be 
stopped on his term at the 1991 
coup. This would have given 


NHS accounts qualified over 
£3m in termination payments 


By Alan Pflte, 

Social Affairs Correspondent 

Health authorities may have 
exceeded their powers by spend- 
ing nearly £3m on termination 
payments for employees, it was 
revealed yesterday by Sir John 
Bourn, comptroller and auditor- 
general 

He qualified his opinion on 
National Health Service accounts 
for 1992-33 in view of “consider- 
able doubt" over whether the 
health authorities were empow- 
ered to make all the payments 
concerned 

The report brought renewed 
criticism of financial controls in 
the NHS from Mr David Blim- 
kett, shadow health secretary. He 
said it provided “yet more evi- 
dence" or how public money was 
used in an unaccountable health 
service. 

“By packing health authorities 
with Tory supporters, the govern- 


ment has ensured that derisions 
about pay-offs and relocation 
payments are being made with- 
out public scrutiny." he said. 

Sir John found that regional 
and district health authorities 
made employment termination 
settlements totalling £2,638.000 
over four years which may not 
have been within their powers, 
while family health authorities 
paid another £348.000. Most of the 
settlements were compensation 
for loss of office following organi- 
sational change and. says the 
report, largely represented unex- 
pired portions of contracts - the 
longest period being two years 
ninp months. 

Senior NHS managers say they 
are considering what proportion 
of the payments was properly 
due, and will then discuss with 
the Treasury whether any 
re maining sums can be approved 
retrospectively on value for 
money grounds. Sir John says 


the Treasury has refused to 
approve a £78,000 termination set- 
tlement pfriri by Wessex regional 
health authority to a member of 
staff, but the authority believed 
that “pursuing recovery of the 
payment would not be cost-effec- 
tive". 

The report finds that two 
health authorities spent a farther 
£465,000 on relocation payments 
for five members or staff, £202400 
of which was outside their pow- 
ers. 

Severance payments are a sen- 
sitive issue in the NHS. MPs on 
the Commons public accounts 
committee investigating cases of 
mismanagement have criticised 
payments to staff who, they 
believe, should have been sum- 
marily dismissed. 

Sir John finds that 84 per cent 
of NHS trusts broke even in 
199293. while 81 per cent stayed 
within their external financing 
limits set by the government. 


Draft code boosts Brussels’ aim 
of controlling EU trade policy 


him, in effect, more than four 
years after he Is restored to 
power. 

Mr Clinton's address appeared 
to reduce public opposition to 
invading Haiti. One instant poll 
found support for sending in US 
troops up to 56 per cent from 40 
per cent, while another reported 
•o ut right opposition to an inva- 
sion down from 73 per cent to 60 
per cent 

However, much political opin- 
ion was unmodified- Former pres- 
ident Georgs Bush said yesterday 
he found Mr Clinton’s arguments 
“mind-boggling", but he added 
that if the invasion were 
launched “I will support our own 
troops and our own president". 

Least worst option. Page 9 

Russia set 
I for risky 
reform step 

Continued from Page 1 

cent It also wants to increase by 
up to $ 2 bn what it can borrow 
under the so called “systemic 
transformation facility”. 

This is a landing median with 
fewer conditions than normal, 
under which Russia has already 
borrowed S3bn in the past 12 
months - also by raising the 
quota limits. 

The $7bn-$8bn from the 
stand-by and the systemic trans- 
formation facility lnan<: would be 
used, says Mr Kagalovsky. to: 

• bind the budget deficit and 
provide for the “pressing needs” 
of industry, the farming sector, 
health and social provision; 

• put up a fund to stabilise the 
rouble by paying an estimated 
36bn and J8bn to the Russian 
Central Bank, and giving it 
enough reserves to protect the 
Russian currency once it is made 
fully convertible. Mr Kagalovsky 
says that the money must be 
paid over to Russia rather than 
held In reserve by the Fund; 

• give Russia membership of 
the Paris Club of creditor 
nations - because of the huge 
debts owing to Russia, which Mr 
Kagalovsky estimates at $l47bn. 


By Emma Tucker in Brussels 

The European Commission has 
been given a boost in its efforts 
to control the European Union's 
international trade policy, under 
a proposed compromise drawn up 
by the German presidency of the 
Council of Ministers. 

The dr3ft compromise is 
intended to help resolve a com- 
plex legal battle between the 
Commission and member states. 
The dispute threatens to delay 
EU ratification of the General 
Agreement on Tariffs and Trade 
Uruguay Round world trade deal 
due to come into effect at the 
start of 1995. 

However, the proposal is still 
likely to be resisted by some of 
tbe 12 member states, particu- 
larly the UK and France, which 
must approve it unanimously if 
the row is to be defused. 


Most EU governments object 
that the Commission is over-step- 
ping its authority by Insisting the 
round can be ratified by giving 
the Commission sole power to 
negotiate trade agreements. 

The governments argue that 
this authority does not cover 
agreements in areas such as ser- 
vices and intellectual property. 
They say ratification of these 
aspects, and the Commission's 
authority to negotiate on them in 
tbe planned World Trade Organi- 
sation, requires additional legis- 
lation. 

However, a draft of the German 
presidency's proposed compro- 
mise goes a long way to satisfy- 
ing the Commission's demands. It 
says: “The commission will speak 
and negotiate on behalf of the 
community and the member 
states in the WTO." 

The draft adds that member 


states' freedom to speak out indi- 
vidually in the WTO would be 
subject to a code of conduct 
which would leave them little 
scope for action. 

The code of conduct is also 
likely to anger the European Par- 
liament. The parliament says it 
has a right of consultation on the 
procedure that the code - which 
makes no reference to the parlia- 
ment whatsoever - tries to cir- 
cumvent 

Positions taken in trade mat- 
ters should “result from a com- 
mon decision arrived at wherever 
possible on the basis of a Com- 
mission proposal", the code 
states. When that proves impossi- 
ble it may be decided “at an 
appropriate level by consensus 
that each member state will be 
free to present its own position". 

Santeris challenge, Page 9 


Lottery 


Continued from Page 1 

proceeds to replace statutory 
ftmding programmes. 

At the conference Mr Major 
outlined some of the possibilities 
for the fund designed to marie the 
millennium. They could range 
from engineering and construc- 
tion projects to ways to help the 
environment and equipping vil- 
lage balls with computers. 

A Millennium Bursaries 
Scheme was being considered by 
the Millennium Commission. 

“Chairs could be endowed at 
universities In subject areas 
which will contribute to the qual- 
ity or life for everyone In the 
third Millennium," Mr Major 
said. 


r GUIDE 


Europe today 

Low pressure will weaken as rt moves aver 
southern Sweden. As a result, north-westerly 
winds over the North Sea will diminish to 
gale or near gale speeds. Cool and unstable 
air will continue to bring overcast skies and 
numerous showers, possibly with thunder, to 
tho east coast ol England, the Benelux, 
northern Germany. Denmark, Sweden and 
Finland. High pressure south-west of Ireland 
wiH keep western England, western France 
and Ireland mainly dry. The Mediterranean 
wiH remain sunny and dry, except for 
southern Italy and the Baleares, which win 
have a few showers. The Alps and the 
Balkan states win also have showers. The 
highest temperatures will be in south- 
eastern Europe. 

Five-day forecast 

High pressure wilt build towards central 
Europe and Scandinavia resulting in fewer 
showers around the North Sea and western 
Scandinavia on Sunday. Finland, southern 
Sweden and the Baltic states will continue 
to be overcast with numerous showers. Low 
pressure over the Mediterranean will bring 
thundery showers to southern France. Italy 
and the former Yugoslavia from Sunday. 


1020 fT™*. 1010 s &£,' W. 102 

r-v*7 / 


1020 high! 


04s 


: 7 


at 

/ v " ■ j <f£b <3 ski-. 


Vk’.? 


TODAY'S TEMPERATURES 


■■■; • fwi-y; 'I*;' 

Warm front A-m. Cold front Wind speed In KPH ' . • “ 

Snuabcn or \2 GW Temperatures maomum fer day. Forecasts by Metso Consult of the Netherlands 


Alsu Dhabi 

Accra 

Algiers 

Amsterdam 

Athens 

Aikntn 

B Aims 

Blum 

Bangkok 

Barcelona 


Maximum 
Coisura 
sun 40 
cloudy 31 
fair ZT 
shower 14 
sun 31 
far 29 
far 19 
fair 14 
ram 32 
la* 23 


Bapig 

Belfast 

Belgrade 

Benin 

Bermuda 

Bogota 

Bombay 

Brussels 

Bu dopes! 

Chagen 

Cano 

Cape Town 


28 

Caracas 

shower 

31 

Faro 

14 

Cardiff 

lair 

15 

Frankfurt 

25 

Casablanca 

sm 

23 

Geneva 

16 

Chicago 

sun 

IS 

Gibraltar 

31 

Cologne 

shower 

14 

Glwgow 

19 

Dakar 

shower 

30 

Hamburg 

31 

□alias 

far 

31 

Helsinki 

14 

Delhi 

fair 

34 

Hong Kong 

16 

Dubai 

sun 

38 

Honolulu 

14 

Dublin 

cloudy 

14 

Istanbul 

33 

Dubrovnik 

far 

24 

Jakarta 

16 

Edinburgh 

cloudy 

15 

Jersey 

Karachi 

Kuwait 


Your frequent flyer program: 
Lufthansa Miles &' More. 

Lufthansa 


L Angeles 

Las Primas 

Lima 

Lisbon 

London 

Lux-bourg 

Lyon 

Madeira 


27 

Madrid 

sun 

23 

Rangoon 

cloudy 

30 

14 

Majorca 

shower 

24 

Reykjavik 

ram 

It 

12 

Malta 

cloudy 

29 

no 

far 

24 

25 

Manchester 

fair 

14 

Rome 

fair 

24 

16 

Marita 

cloudy 

33 

S. Fraco 

am 

23 

15 

Molboune 

shower 

11 

Seoul 

shower 

27 

14 

Mexico a ty 

cloudy 

19 

Skigapore 

shower 

31 

29 

Miens 

(hund 

32 

Stockholm 

shower 

13 

32 

Mian 

shower 

19 

Strasbourg 

cloudy 

13 

30 

Montreal 

shower 

20 

Sydney 

aim 

21 

32 

Moscow 

cloudy 

22 

Tartar 

sun 

26 

15 

Munich 

shower 

11 

TeJAvfv 

am 

32 

30 

Nairobi 

SMI 

29 

Tokyo 

shower 

28 

41 

Naples 

fair 

24 

Toronto 

shower 

20 

2S 

Nassau 

thund 

32 

Vancouver 

shower 

20 

27 

New York 

thuid 

28 

Venice 

shower 

19 

19 

Nice 

sun 

21 

Vienna 

shower 

10 

26 

Neoata 

an 

39 

Warsaw 

shower 

15 

IS 

Oslo 

cloudy 

12 

Washington 

thund 

28 

12 

Paris 

cloudy 

16 

Woffington 

doudy 

11 

14 

Perth 

far 

23 

Winnipeg 

Far 

20 

25 

Prague 

cloudy 

14 

Zurich 

shower 

11 


Tied down by bonds 


The equity market has again fallen 
foul of events in bonds. Yesterday’s 
47-point foil in London was the prod- 
uct first of disappointing public sector 
borrowing figures for August and later 
of the sharp rise in US industrial pro- 
duction which raises fears of further 
Increases in transatlantic interest 
rates. That equities should react badly 
to signs of economic growth always 
suggests valuations are stretched. But 

t h i s Week hag shown them a gain In 

thrall to bonds, where the outlook is 
not particularly promising. 

There is no particular need to worry 
about one month's poor borrowing fig- 
ures. The cumulative trend in govern- 
ment spending this year still suggests 
the PSBR wQl undershoot the govern- 
ment’s £36bn target. But the positive 
response to Monday’s higher base 
rates has quickly evaporated and tbe 
government ftmding programme is no 
longer as comfortably ahead as it was 
at the start of the year. 

For tbe time being, the authorities 
seem to be playing safe. The Septem- 
ber auction will be of 19-year paper 
which is usually attractive to interna- 
tional investors and deliverable into 
the futures contract With a stronger 
sterling and a yield premium of 150 
basis points over German government 
bonds, it may meet reasonable 
demand. But the German market is 
spooked by the realisation that the 
government is behind with its financ- 
ing while the interest rate cycle has 
turned. Against that background, 
there is not much relief in right. 

Next 

Next is an undeserved prisoner of its 
past Investors remember the punish- 
ment which followed their love-affair 
with the company in the 1980s, and 
live in fear of a repeat performance - 
, even though Next* s successes are now 
based on more solid foundations. How 
much more solid was emphasised by 
yesterday’s stellar set of interim 
results, which perversely served to 
trigger a 5 per cent foil in the share 
price. 

Admittedly the chairman was cau- 
tious on the outlook for sales growth, 
but the slowdown from the current 13 
per cent does not mean growth is set 
to peter out On the contrary. Next is 
increasing its retail and catalogue 
sales foster than its competitors. The 
City consensus suggests high opera- 
tional gearing will take pre-tax profits 
to more than £100m this year - close 
to the 1980s high point - and to more 
than £120m In 1995. Hans for expan- 


FT-SE Index: 3065.1 (-47.6} 


Share price (pence) 
400 



90 92 M 


Source: FT Graphite, 


sion are reassuringly modest The ten- 
tative four-store experiment in the US 
does not suggest Next is about to rush 
into trouble in tbe tricky north Ameri- 
can market. 

The current management's perfor- 
mance has been honoured by a nine- 
teen-fold increase in the share price 
since its 1991 low point, a performance 
that obviously cannot be maintained. 
It is. however, quixotic that the shares 
should be on a sub-sector rating; when 
the earnings outlook is better than for 
the sector as a whole. 

Banks’ fees 

Are financial advisers fleecing their 
most vulnerable corporate clients? Tbe 
question has been raised twice this 
week. In the first instance, Lasmo 
revealed it had paid financial advisers 
£16m to fend off a hostile £L6bn bid 
from rival oil explorer Enterprise. In 
the second, Queens Moat Houses, tbe 
struggling hotel group, announced 
that provisions for restructuring its 
£1.3bn in debt had been raised to 
£42m. Some of that has been ear- 
marked to pay fees for a new borrow- 
ing facility. 

In Queens Moat’s case, the scope for 
exploitation is clear. Its bankers were 
in a position to dictate terms for tire 
borrowing facility. If Queens Moat did 
not like them, the banks could have 
forced it into receivership. The Lasmo 
case is less clear-cut. Theoretically, it 
could have shopped around to find a 
cheaper set of advisers. But in prac- 
tice, managers on the receiving end of 
a hostile bid rarely concentrate on 
negotiating lower fees. Their priority 
is to beat off the predator. 

Of course, just because there is 


scope for exploitation does not mean it 
has actually occurred in either case. 
The sums look high, but lt is possible 
advisers have provided value for 
money by rescuing Lasmo from take- 
over and Queens Moat from receiver- 
ship. The only way to know would be 
if much greater detail was disclosed 
by companies in such vulnerable situ- 
ations about their contracts with 
bankers. Ideally, this should happen in 
good time for shareholder objections 
to be aired. Bankers might still seek 
multi-million pound fees bat they 
would have to justify them in public. 

Sweden 

At one level it scarcely matters to 
Swedish financial markets who wins 
tomorrow's election. With government 
debt already yielding 8 percentage i 
points more than the inflation rate the 
market has already priced in a good 
measure of scepticism over the coun- 
try's ability to contain its government 
deficit. National debt threatens to 
exceed gross domestic product next 
year. High interest charges on that 
debt mean Sweden will find it harder 
than other countries to grow out of its 
deficit problem. The stage is coming 
when a government of whatever hue 
must take action to curb welfare 
spending. 

Doubtless, victory for Mr Carl 
Bildt's centre-right coalition would 
come as a pleasant surprise for mar- 
kets. Hie Social Democrats look more 
likely to win. albeit not outright Their 
plans for reducing the deficit are strik- 
ingly modest by comparison with 
those of the government, but a coali- 
tion partner might force them into 
tougher action. High-profile warnings 
about the state of government 
finances from private sector business- 
men have at least drawn public atten- 
tion to the issue. 

The question for financial markets 
will be how long it takes for the Social 
Democrats to rerise their plans. Any- 
thing more than a short delay could 
provoke a further bout of weakness for 
both bonds and tbe krona, and a fresh 
rise in short-term interest rates. Bold 
investors might see that as a buying 
opportunity on the grounds that finan- 
cial market alarm would concentrate 
minds on the fiscal problem. But tbe 
ride could become very rough indeed 
if the markets conclude that the gov- 
ernment does not have the stomach 
for the task. That would prompt more 
general worries about the ability of 
industrial democracies to fund their 
public spending. 


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A 









SECTION II 




T irana airport is not the 
best introduction to the 
changes which have 
rocked post-communist 
Albania in the past two 
years. Armed guards lounge around 
the perimeter under makeshift sun- 
shades, and pill-boxes lurk sinis- 
teriy in the tall grass. The runway 
is bumpy, the ter mina l tatty. 

As we drive out, I see a woman 
washing clothes in a ditch. The 
fields, parched by the sun, are 
enclosed by the mountains which 
Albania used to shut out the out- 
side world for 50 years. 

Closer to Tirana, though, signs of 
change multiply. Battered, but 
recognisably western, vehicles 
begin to proliferate and a huge 
Coca-Cola plant looms on our left. 
As we enter the city, the side of the 
road becomes a teeming bavaar 0 f 
people selling car parts and piles of 
imported household knick-knacks. 
Every few yards, little kiosks with 
plastic tables and chairs dispense 
coffee. 

The air is thick with dust and 
heat. At a roundabout the traffic, 
now dense with buses and lorries, 
barges its way forward with much 
hooting and revving of smoky 
engines. The buses, I notice, have 
"Region de Bruxelles" written on 
the side: Albania already has a rep- 
utation as Europe's “last-hand” 
market for anything on wheels. 

The roads are lined with uniform 
rows of cheaply built apartment 
blocks. At ground floor level are 
shops, but many have been aban- 
doned: they served a planned econ- 
omy which no longer exists. Busi- 
ness has shifted to the footpath 
kiosks or the new shops which peo- 
ple seem to erect wherever they 
like. 

Our hotel, the Diplomat, is small 
but brand new. run up with Italian 
money. My room has all mod cons 
including a refrigerator, all of them 
working. I had been told that the 
water gets turned off several times 
a day in Tirana, but the hotel man- 
ages to maintain a steady supply. 

We meet in the hotel cafe for a 
drink. A till young waiter takes our 
order. He speaks perfect English 
with barely a trace of accent He 
learnt it all at school, he informs us; 
he has never set foot outside 
Albania. (In later meetings. I was to 
see further evidence of the astonish- 
ingly high educational attainments 
of the Albanians - one positive leg- 
acy. at least, of the despised com- 
munists.) 

Wc learn more about the previous 
regime on the way to our first offi- 
cial appointment at the industry 
ministry. The car ride takes us up 
the huge eight-lane boulevard 
which Enver Hoxha. the former dic- 
tator, built for a country with no 
private cars. It runs past the pyra- 
mid-shaped mausoleum which he 
erected for himself; this now con- 


The long road back to planet Earth 

Battered and bewildered, Albania is slowly emerging from 50 years of isolation and dictatorship. David Lascelles reports 


After the years of communism, land in Albania was transferred to private hands. Now agricultural output is rising at an official 14 per cant a year. Unofficially, it’s much more 


tains government offices. 

The ministry occupies a large but 
faded Italianate building with the 
shutters hanging off. In a spacious, 
lemon-painted room with a long 
veneered table. Premier Consoli- 
dated Oilfields of the UK and Albpe- 
trol, the Albanian state-owned oil 
company, sign a contract while 
crowds of Albanian reporters and 
television crews record the scene. 
Abdyl Xbaja, the industry minister, 
is handed a personal letter from 
Michael Heseltine, his British oppo- 
site number, and proclaims 
Albania’s eagerness for foreign 
investment 

That evening, the Albanians come 


for a reception at the Diplomat: 
over canap&s and French cham- 
pagne. I learn more about the 
recent past of this country of 3J2m 
people, about the same size as Bir- 
mingham, squashed on the edge of 
the Adriatic between Yugoslavia 
and Greece. 

It is only 2Vi years since students 
triggered the uprisings which 
finally finished off the communists. 
In 1992, the new Democratic party, 
headed by Dr Sail Berisha, was 
swept to power with a plan to trans- 
form Albania into a market econ- 
omy. There are now more than two 
dozen political parties. Information, 
once a state monopoly, swirls 


around the country: satellite dishes 
are sprouting all over the place. I 
am shown a picture of a man taking 
one home on a mule. 

The legacy of communism cannot 
be eradicated that easily, however. 
The die-hards are still around- So 
are the people who ran the neigh- 
bourhood spy networks which infil- 
trated the lives of every Albanian. 
Many of them got rich on the old 
system and have managed to pre- 
serve their wealth. They are now 
accused of fomenting unrest includ- 
ing, it is alleged, a recent demon- 
stration by political prisoners of the 
co mmunist s who want more com- 
pensation. One of the big questions 


is whether they are still powerful 
enough to derail the reform process. 

On the economic front, land, 
housing, small businesses and the 
entire bread-baking industry have 
been tran.sfp.rred to private hands; 
heavy industry will follow as soon 
as possible. There is unemployment 
and inflation, but not on the scale 
of Russia. 

During the overthrow of commu- 
nism, the crowds destroyed much of 
the productive economy, factories, 
shops, greenhouses, even trees. 
These shattered relics now litter the 
towns and countryside - a cost that 
Albania's tiny economy could have 
been spared. They even smashed 


the breweries and ripped np the 
vineyards; Albania now has to 
import beer and wine. 

Before dawn the following morn- 
ing, we set off by car to visit 
Albania's oilfields, 100 miles south 
of Tirana. The rising sun reveals a 
bleached landscape which might 
have belonged to the 19th century. 
Farmers travel to the fields with 
horses and carts; women tend the 
crops with hand tools; barefooted 
children scamper along the roads. 
Bulging haystacks stand in the 
farmyards. 

My companion tells me that, two 
years ago, the plain we are passing 
was one huge field owned by the 


state farm: today, it is dozens of 
tiny strips. Agricultural output in 
Albania is rising at an official 14 per 
cent a year but, unofficially, it is 
many times that. For the first time 
in the country’s recorded history, 
the peasants really own the land, 
not the state or the big landlords. 

Everywhere there are pill-boxes, 
erected by the paranoid commu- 
nists: little ones in clusters, big 
ones at strategic points, all built 
with the best concrete available. 
They drained the economy and are 
now abandoned - but indestructi- 
ble. There are said to be more than 
lm of them, one for every hectare in 
the nation. At one point, we pass 
along the coast miles of sand and 
waving pines, utterly unspoilt 
except for even more pill-boxes. 

Progress on our journey is slow: 
horse-drawn carts congest the road, 
which is too narrow for easy over- 
taking. Many large lorries are bro- 
ken down on the verge. Frustrated 
drivers overtake recklessly- We pass 
through several towns with dusty 
streets and raw concrete buildings. 
Many have brand new mosques and 
chinches: religion is returning. 

Finally, we come over the brow of 
a hill: there before us, stretching as 
far as the eye can see, is a forest of 
oil derricks. Greasy pools and rust- 
ing equipment defile the landscape 
and sheep graze in between the 
wells. British Petroleum discovered 
this field in the 1920s. the largest 
onshore field in Europe which, liter- 
ally, sticks out of the ground in 
oily, sandstone outcrops. 

The communists exploited it for 
all it was worth, but lack of know- 
how and spare parts brought pro- 
duction gradually down to a trickle. 
Of the 2.000 wells, only 800 are prod- 
ucing, some as little as a couple of 
barrels a day: indeed, no one is 
quite sure how much the field actu- 
ally produces. But the good news is 
that the co mmunis ts manag ed to 
extract only 4 per cent of the 
reserves. Premier Consolidated will 
now help Albpetrol suck out as 
much as possible of the rest 

We hurry back to 'I5rana for a 
meeting with Berisha. His office is 
in a spacious building on Hoxha’s 
eight-lane boulevard; the new deep- 
red flag with black eagle is flutter- 
ing outside. Armed guards salute as 
we swing into the drive, and a man 
in a bright green shiny suit ushers 
us into a waiting room. The furni- 
ture, the doors, almost everything is 
covered in shiny veneer. 

But Berts ha’s office is quite differ- 
ent: it is smqll and furnished com- 
fortably. The president himself 
turns out to be a pleasant, middle- 
aged man with a fruity voice and a 
pale, lightweight suit A cardiolo- 
gist by profession, he came only 
lately into politics and still lives in 
his third-floor flat at the other 

Continued on Page VIH 


CONTENTS 


The 


Family finance : How to complain 
when you have had a raw deal 111 

Despatches : Himalayan escape; a 
family holiday that went wrong DC 

Travel : The long summer night of 
the Finnish soul X 

Arte : The glory of Venice's second 
Dowering XUI 

Food & Drink: The menace of the 
vegetarian thought police XX 

Interview: The general who led the 
Philippine march to democracy XXII 



Minding Your Own Business: the 
ups and downs of the professional 
parachute club ^ 


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,i;vTn-' Marian 

P»nw*iv 

Slone 

Sirrifl t'u&ittfTO 
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XIV 
XXI 

XVIII 

m-vii 

XX 
XVII 
MX 
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II 

VIA 

XV 

XVI 

xv 

VH1 

XV 

X-XI 

XXI 


Clarke’s 



A new chapter of 
interest rate mythology 
was created this week 
with the first moderate, 
apparently unforced 
rise in sterling interest 
rates, after a period of 
stability, that anyone 
ran remember. Kenneth 
Clarke, the Chancellor 
of the Exchequer, strutted the stage on 
Monday, perfecting his heroic role as 
the far-sighted finance minister making 
a pre-emptive strike against the still 
distant but increasingly discernable 
ogre of rising inflation. Interest rate 
changes are still an excuse for drama - 
although the Government Broker no 
longer stands on a bench in the stock 
exchange and rings a bell. 

Only ghosts from the past threatened 
to spoil things. We are presently cursed 
(or blessed?) by ex-chancellors with 
nothing very much to do and no cabinet 
confidentiality to inhibit them. Norman 
Lament and Nigel Lawson promptly 
seized their chance to burst into the 
newspapers with warnings that rates 
would soon have to be raised further. 


Certainly, the circumstances of the 
increase were a whole lot more digni- 
fied than those of the typical rises in 
the past when chancellors were often 
forced into action by bond market col- 
lapses and foreign exchange panics. 
Broken, too, has been the rule of asym- 
metry that rates rise in whole percent- 
age points - even two. sometimes - but 
decline gently in halves and quarters. 

Is that break with tradition a good 
thing? Lying behind the old rule was 
the wisdom that finance ministers have 
to be forced into taking politically 
unpleasant steps. Not that rises in 
interest rates ought necessarily be 
unpopular politically. Pensioners with a 
pile of building society passbooks in 
their cupboards positively love than. 
Rising interest rates should be viewed 
as the normal and uncontroverslal con- 
sequence of a strong economy. But the 
view from Westminster, under pressure 
from the industrial and housing lobbies. 


is different. 


Hence the worry that anything that 


Long View / Barry Riley 

pre-emptive strike 


chancellors do voluntarily on interest 
rates is unlikely to be sufficient So, we 
must look critically at the Treasury's 
suggestion that in conditions of strong 
economic growth, a half-point rise In 
interest rates is adequate to ensure that 
“we take no risks with inflation”. 

For the British public, the domestic 
emphasis here is, no doubt, well-judged 
politically. It is more logical, however, 
to fit the increase into a global pattern 
in which US dollar interest rates have 
been rising for some time and some 
rates in Europe - in Sweden and Italy, 
for instance - have gone up already. 

Sterling’s exchange rate has been eas- 
ing gently this year on a trade-weighted 
basis. Meanwhile, it costs the British 
government much more than those of 
the US and Germany to borrow through 
the bond markets (by a margin of up to 
VA percentage points) even though 
inflation In the UK has been lower than 
in those countries for the past two 
years and is quite likely to remain 
lower - certainly than in the US and 
possibly than in Germany, where mone- 
tary growth has been excessive. 
Britain's inflationary past still imposes 
a price; so there was a need to send out 
a message of prudence. 

I n itself, though, a half-point rise 
in rates is trivial, apart from its 
Impact on sentiment. In this con- 
nection, the Halifax building soci- 
ety was extremely unwise to be so hos- 
tile to the threatened rise a week ago. It 
should have said that a moderate 
increase, in the context of a strong 
economy, would pose no threat to house 
prices. As it is, some buyers may now 
be discouraged unnecessarily. In the 
1980s, however, mortgage rates were 
often much higher than they are now, 
without plunging the housing market 
into decline. The housing market has 
problems, but the cost of mortgages is 
not yet one of them. 

Will sterling benefit? A strong cur- 
rency reduces imported inflation from 
rising commodity prices. Sterling has 
indeed risen a little this week. But the 
Italian and Swedish currencies have 
lost much of what they gained from the 


August interest rate increases. And 
consider the impact of the collapse this 
year of the gap between US and Ger- 
man short-term interest rates from over 
3 per cent to about Vi per cent 

Such a relative shift, which was 
expected widely, was supposed to make 
the dollar attractive at the beginning of 
the year, according to widespread opin- 
ion in the markets. That has turned out 
to be quite wrong: in fact, the D-Mark 
has risen by 13 per cent against the 
dollar so tar in 1994. Two of this year’s 
strongest currencies, the Japanese yen 
and the Swiss franc, have the lowest 
interest rates. You cannot strengthen 
the currency by raising short-term 
interest rates; but if you have a strong 
currency, you can cut them. 

If this sounds odd. remember that 
much of the money flowing around the 
world today travels through the securi- 
ties markets: we have long-term hot 
money. If that is not an oxymoron, 
rather than the overwhelmingly 
short-term money market flows of the 
1960s and 1970s. Note that the bond 
market interest rate differential has 
actually shifted in Germany's favour 
this year by nearly 14 per cent, the 
opposite to what has happened in the 
short-term markets. 

As for the UK, the sterling 10-year 
bond interest rate has jumped by 2Vi 
percentage points this year but there 
have been no newspaper headlines and 
no industrial lobbyists have besieged 
the Treasury on the subject. Clarke 
does not pretend to set the bond yield 
as he pretends to set the short-term 
interest rate. 

So, are shortterm interest rates irrel- 
evant? Not quite, but it took very large 
rises late in the 1980s to choke off the 
boom. Lawson added a cool 6% points 
in under a year and his successor, John 
Major, one more point on top for luck. 
The rises burst the housing market 
bubble and deflated the consumer 
boom. The Halifax cer tainly had reason 
to be worried then. 

As the Chinese say, and Lawson 
knows, the longest journey begins with 
a single step. But, so for, this is just a 
gentle strolL 


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U WEEKEND FT 


FINANCIAL TIMES WEEKEND SEPTEMBER 17/SEPTEMBER IS l«94 


MARKETS 


London 

Clarke’s move 
leaves dealers 
guessing 

Andrew Bolger 


Retail sales: losing support 


Percentage per annum 


W ell, he finally 
did it. The 
half-percent- 
age-poi nt 
increase in 
bank base rates to 5.75 per cent 
announced on Monday by Ken- 
neth Clarke, the chancellor, 
was the first rise in UK inter 
est rates for nearly five years. 

This assumes, of course, that 
memory casts a discreet veil 
over the two panic increases in 
base rates announced almost 
exactly two years ago, on Sep- 
tember 16 - the day Britain 
was pushed out of the Euro- 
pean exchange rate mechanism 
by the weight of international 
speculation against the pound. 

On that fateful Wednesday - 
Black or White now. according 
to personal taste - rates were 
pushed up from 10 per cent to 
first 12 and then 15 per cent, 
before Clarke's predecessor, 
Norman Lamont, admitted 
dereat. 

The fall in interest rates to 6 
per cent over the following 
four months, and the substan- 
tial devaluation of sterling, 
fuelled a 1,200-point rally in the 


FT-SE 100 which only peaked 
February this year, when the 
index touched 3.491.5. 

This week’s confirmation 
that the UK interest rate cycle 
has finally turned upwards 
received a much more muted 
and uncertain response from 
tbe equity market than 
Britain’s escape from the defla- 
tionary shackles of the ERM. 

Partly this was because 
Clarke wrong-footed traders. 
When the previous week's 
meeting between the chancel- 
lor and Eddie George, Gover- 
nor of the Bank of England, 
passed off without an 
announcement, the City 
assumed that base rates would 
not increase before next month 
at the earliest 

Clarke said he had decided to 
raise rates “to take no risks 
with inflation" at a time of 
strong economic growth. No 
one can remember when a UK 
government last tightened 
monetary conditions while 
retail price inflation is sub- 
dued. Underlying inflation, at 
22 per cent in July, was at a 
27-year low. 



The chancellor said he was 
looking 12 to 18 months ahead 
and was determined to keep 
the recovery healthy and last- 
ing. This was well received on 
Monday and the FT-SE 100 
made up more than half an 
early 25-point loss to finish 10.5 
points down at 3.12&& 

The chancellor’s move lost 
some its shine on Wednesday. 
A jump in August's inflation 
figures and an unexpectedly 
sharp drop in unemployment 
raised suspicions that the base 
rate cut was not nearly as far- 
sighted and pre-emptive as 
Clarke had suggested. The 
prospect of the need for further 
base rate increases prompted a 
sharp decline in share and 
bond prices, with the FT-SE 
100 falling 4i.6 points to close 
the day at 3,079-8- 
The market recovered 32.9 
points on Thursday, when 
news of a drop in retail sales 
last month allayed concerns 


HIGHLIGHTS OF THE WEEK 


Price 

/day 

Change 
on week 

1994 

High 

1994 

Low 


FT-SE 100 Index 

3065.1 

-742 

3520.3 

2376.6 

Base rata rise 

FT-SE Mid 250 Index 

3616.1 

-119.9 

4152.8 

3363.4 

Base rate rise 

APV 

75 

-1316 

138 

75 

Interim dividend halved 

Barrett Devs 

183 

-28 

292 

180 

Base rain rise 

Berkeley Group 

363 

-45 

573 

383 

Base raw rise 

Blenheim Group 

213 

-30 

402 

213 

Profits wamktg 

Calor Group 

299 

+29 

375 

261 

Better than expected Wei line 

Country Casuals 

108 

-44 

170 

108 

Profits warning 

Crockfords 

142 

-9 

158 

133 

Ofaappokittag Interims 

Fairey Group 

396 

+13 

402 

334ft 

Excelent Interim figures 

Rsons 

123 

-ZB 

157 

113 

Bid premium eroded 

Liberty 

350 

-38 

435 

350 

Interim losses 

Mdlands Elec 

773 

-35 

840 

547 

Profit-taking 

Persimmon 

246 

-15 

379% 

229 

Base rate rise 

Warburg fSG) 

730 

-32 

1012 

676 

TUrbulent markets 


that another base rate increase 
would soon be necessary. But 
the FT-SE 100 again lost 
ground yesterday when a surge 
in US production and capacity 
utilisation figures triggered 
taiic of an imminent increase in 
US interest rates. 

One reason for investors’ 
erratic response is growing 
unease about the relative valu- 
ation of equities, compared 
with gilts. The ratio of bond to 
equity yields in tbe UK is at a 
historically high 2.3 times. 
That can be Justified only so 
long as companies deliver 
strong growth in earnings and 
dividends, which may become 
more difficult now that Clarice 
has started to apply the brakes 
to the economic recovery - 
however gently. 


F 


ew industrialists 
think a half-percent- 
age-point increase 
will make a crucial 
difference in the long run, but 
the effect on sentiment could 
be significant. The 0.3 per cent 
drop in retail sales between 
July and August shows that 
consumer confidence remains 
fragile. The chart illustrates 
one reason: the increase in 
average earnings, adjusted for 
increased fa tor and prices, has 
been lagging behind the 
growth in retail sales since 
early 1993. 

One of the UK’s largest retail 
groups. Kingfisher - which 
includes B&Q, Comet, Super- 
drug and Wool worths - this 
week reported a 7.4 per cent 
increase in pre-tax profits but 
admitted the results were less 
than satisfactory. Sir Geoffrey 
Mulcahy. chairman, said he 
remained caotious about UK 
retail markets. 

Alan S mith, chief exec utiv e, 
said Kingfisher's priorities 


were to improve ranges, value 
for money and service. Cost- 
cutting would continue and 
some job losses would result 
He said it would take tune to 
implement Kingfisher’s Every- 
day Low Pricing strategy - 
permanently lower prices, lead- 
ing to higher sales and profits 
■ - throughout the group. 

Such an approach may bode 
well for the infla tion outlook, 
but it is not an easy environ- 
ment for companies to make 
money in. APV, the food pro- 
cessing equipment specialist, 
said the threat to profits mar , 
gins been increased by the 
pressure which retailers in 
Europe and the US are putting 
on the group's main customers, 
the leading food processors. 

The chancellor is clearly 
determined to avoid having to 
choke off an overheating econ- 
omy in tbe run-up to the nart 
election. He has therefore sig- 
nalled his intention to keep 
control of inflation - even if 
that entails some risk of slow- 
ing the recovery. 

With the peak of the interim 
reporting season passed, ana- 
lysts will have fewer indica- 
tions of how companies are 
coping in this new world of 
rising raw material prices, 
reluctant consumers and 
squeezed profit margins. 

Yesterday's concern over a 
possible increase in US interest 
rates took the FT-SE 100 down 
47.6 points to close the week 
3,065-L 

Some analysts are still stick- 
ing with year-end forecasts of 
up to 3,500, but those now look 
extremely ambitious. Brokers 
still expect strong dividend 
growth over the next couple of 
years, but equities are unlikely 
to advance much until the tur- 
bulence in the international 
bonds market calms. 


Serious Money 


Traps that investors 
cannot understand 

Gillian O 9 Connor 9 personal finance editor 


I nvestment is an art 
masquerading as a sci- 
ence. The City is packed 
with analysts trying to 
crunch numbers into 
smaller pieces than thpir com- 
petitors. But personal investors 
hoping that a single key statis- 
tic can open the door to stock 
market riches are set for disil- 
lusionment. Most investment 
decisions are complex and still 
have a strong subjective ele- 
ment to t hem. 

What is more, many of the 
numbers themselves are sur- 
prisingly open to question. 
This week, for example, a new 
study examined one puzzle: 
why was the price/earnings 
ratio on the FT-SE-A All-Share 
index in August more *har> 3 
percentage points higher than 
stockbrokers' p/e estimates? 

Most of the discrepancy was 
explained by differences In the 
ways the two groups calculate 
the figures. Especially interest- 
ing, though, was why their 
chosen methods varied. They 
were trying to measure slightly 
different thing s for very differ- 
ent purposes. 

The FT indices are intended 
to measure what actually hap- 
pened, in the most objective 
way possible. They look back 
and aim to provide a yardstick 
of historical performance. 
Their p/e ratios are based on 
thg latest 12 months' namings 
(that is, the two latest half- 
years added together). And 
they make relatively few 
adjustments to companies' 
reported figures. 

Stockbrokers' p/e ratios are 
based on the forecasts by their 
analysts of the earning s com- 
panies will report in the pres- 
ent year. They relate to a later 
time period than the FT's. And 
since this period is in the 
-future, the earnings figures 
are, necessarily, subjective 
estimates. 

What is more, tbe analysts’ 
main interest is not so much 
what profits companies will 
report but their underlying 
profitability. So, if company 
accounts contain unusual 
items depressing or inflating 


the reported profits and earn- 
ings. the analysts tend to 
remove them. 

This is because their job is to 
tell their clients which shares 
look cheap or expensive - and 
a company's future earnings 
potential is one of tbe major 
considerations in share assess- 
ment 

Thus a company which, 
appears as an actual loss- 
maker to the FT’s recording 
angel can be turned into a 
magnificent recovery stock at 
tbe flick of an analyst's calcu- 
lator. 

Which approach is right? 
Both are - on their own terms. 
And both can be useful to the 
intelligent investor if he under 
stands their function. Prob- 
lems arise when investors 
expect too much, or misunder- 
stand the raison d’etre, of any 
statistic (and all professionals 
agree that even forward-look- 
ing p/e ratios are only one fac- 
tor to consider in valuing a 
share). Such problems can be 
expensive, particularly when a 
historic measurement is 
deemed to have same predic- 
tive power. 

C onsider unit trust 
performance mea- 
surement. Analysts 
agree that conven- 
tional performance tables are 
no use in predicting which 
trusts will do well in future. 

The two main UK fund mea- 
surement services, Micropal 
and HSW, are both now calcu- 
lating volatility figures as well: 
these tell you not just where a 
fund got to over a certain 
period, but how erratic its 
progress was. They are 
designed to measure risk. 

Both firms also produce fig- 
ures which combine risk rating 
with performance measure- 
ment to give a risk-adjusted 
rate of return: a common 
enough statistic. A fund with 
an outs tanding performance, 
which is also very volatile, 
mig ht score the same as a less 
volatile fund with a worse per- 
formance. 

Micropal goes one step fur- 


ther, though: it ranks funds 
within a particular sector and 
awards them star ratings of 
one to five according to their 
risk adjusted performance. 
This is where its service starts 
to get contentious. Experience 
suggests that investors pres- 
ented with five-star funds and 
one-star funds will tend to buy 
the former because they expect 
them to do better in future. 

Micropal makes no such 
claims, and is at pains to point 
out that investors need to look 
at all the figures rather than 
home in on the star rating. But 
at least some professional 
investors in the UK worry that 
risk-adjusted figures are posi- 
tively misleading if used as a 
guide to future performance - 
and that making them the 
basis of a star system is to 
invite misuse. 

In the US, the best known 
fund rating service. Moraings- 
tar. has its own system for 
awarding star ratings. Earlier 
this year, a study showed that 
funds rated five-star by Mor- 
nings tar performed indiffer- 
ently thereafter. But stars gut- 
ter - particularly in the eyes of 
marketing men. . . 

Wiseheads will mutter 
“caveat emptor". But how can 
the ordinary investor be expec- 
ted to avoid a trap he cannot 
understand? 

□ □ □ 

The call for the final instal- 
ment of 8T3 (see page V) raises 
one crucial question: is BT 
itself worth bolding? 

The outlook for the telecom- 
munications giant should be 
better than its recent past sug- 
gests. The shares have done 
substantially worse than the 
stock market as a whole since 
late 1993. In part, this is 
because analysts have been 
impressed too much by its 
domestic competitors, and too 
Uttle by BTs existing strength, 
resilience at home and Interna- 
tional potential 

BT is a riskier investment 
than it used to be, but the 
shares look fair value. 


AT A GLANCE 


Finance and the Family Index 

Financial complaints ill 

The Week Ahead/Results due IV 

Mortgage rates/BT3 call V 

Investment management/ Bank complaints/ Bupa VI 

Trust launches/ Directors' dealings/ Highest rates /Q & A. VII 


Banks’ Base Rate 

Percent 



Kingfisher 

Share price relative 
to the FT-SE 100 Index 
105 



Chancellor raises base 
rates by half a point 

Kenneth Clarke, the chancellor, moved to nip inflation in the bud 
this woeVi by raising base rales by halt a point to 5.75 per cent 
The last rate change before that was a quarter-point cut to 5.25 
per cent in February. 

Clarke said he decided to raise rates on Monday “to take no 
nsfcs with inflation 1 ' at a time of strong economic growth. Some 
business organisations criticised the move, but the market's 
initial reaction was relatively favourable. 

However, the announcement on Thursday that retail sales had 
1 alien in August prompted questions over whether the chancellor 
had acted prematurely. For mortgage rates, see Page V. 

Kingfisher disappoints 

Kingfisher, the UK retailing group which includes BO. Comet. 
Superdrug. Woolworths. and France's Darty. this week 
disappointed the market in spite of announcing a 7.4 per cent 
increase in interim pre-tax profits from E82m to £88. 1m. 

The increase - at the bottom end of forecasts - was mare than 
accounted for by a nse from Cl 6. 1m to £35. 7m in profits 
contribution from Darty. acquired by Kingfisher only two months 
before the end of the first half last year. Excluding Darty from 
both years, retail operating profits fell from £57.5m to £47. 7m. 

Expiry date for warrants 

Holders of warrants in Templeton Emerging Markets Investment 
Trust (Temirt have less man two weeks to sell or exercise their 
warrants before they expire. The warrants, carrying the right to 
buy Temit shares at Cl .27 by September 30 this year, were 
issued in a March 1930 nghts issue, as part of a package at five 
shares and 2.19 warrants, priced at £6.33 tor the package. The 
shares were trading this week at £4.185, and the warrants at 
C2.93, making a total of £27.34 for the original package, 
it warrant holders do not act before September 30. the warrants 
will be exercised on iheir behalf, the resulting shares sold, and 
the proceeds returned to the warrant holders, less costs. II 
holders do not exercise the warrants themselves, they will miss 
out on a bonus issue of new shares and warrants. 

Smaller companies setback 

Smaller company shares suffered a setback this week. The 
Hoare Govett Smaller Companies Index icapitgl gains verson) fell 
1.S per cent to 1688.65 Over the week to September 15. 

Next week’s family finance 

Personal pension plans vary enormously, particularly as regards 
their costs. Next week we report on a major survey of the 
personal pensions market. 


Wall Street 


Dow wobbles on its erratic flightpath 


I t was a poor start to tbe 
week. Just before 2am on 
Monday morning, a small 
red and white Cessna 
150, apparently on a suicide 
mission, glided through the 
sky towards the White House 
in Washington DC, bounced 
off tbe South Lawn, crashed 
through the branches of a 
magnolia tree, and came to 
rest in a crumpled heap 
beneath President Clinton's 
bedroom window. 

As it happened. Bill Clinton 
was not at home. But if tbe 
United States of America could 
not protect the bedroom of its 
president from airborne 
attacks by deranged Maryland 
truck drivers, investors might 
have felt ratified to ask. what 
chance did it stand of success- 
fully managing the economy? 

Just tbe Friday before. Wall 
Street's late summer rally had 
been abruptly halted by tbe 
publication of figures showing 
a bigger-than-expected rise in 
the producer prices index. The 
inference drawn was that, in 
spite of five increases in inter- 
est rates iu tbe last seven 
months, tbe Federal Reserve 
had failed in its efforts to nip 
inflation in the bud. Stocks 
plunged on fears that more 


Dow Jones Industrial Average 

4.000 ’ 



3.600 1 1 

4(4 Aug .Sep 

SoucKR-Gnphte 1894 


Increases in interest rates 
would be needed to put the 
economy back on track, so 
dampening economic growth, 
and with it company profits. 

Traders were therefore in a 
jittery mood when the market 
opened this week. Up tifi the 
previous Friday, most econo- 
mists bad thought the Fed 
would wait until at least 
November before contemplat- 
ing any further credit tighten- 
ings. Now, they feared the 
next increase in interest rates 
could be bigger and earlier. 

Not even the announcement 
of yet another mega-merger - 
a S2bn bid by Kohl berg Kravis 
Roberts, the Wall Street 
investment firm, for Borden, 
the straggling US food group - 
was enough to raise investors' 
spirits, and prices drifted 
lower as the market waited in 
nervous anticipation of more 
bad news on inflation from 
Tnesday’s release of the 
consumer price data for 
August. 

The bad news, however, 
failed to arrive. In fact when 
the figures for consumer 
prices came out tbe index was 
up by only 0.3 per cent a fig- 
ure that compared favourably 
with the consensus forecast: 


and as investors breathed a 
collective sigh of relief, the 
Dow Jones industrial average 
performed a smart about-turn, 
rising more than 19 points. 

The same firing happened on 
Wednesday, when figures 
showing a lower-than-expected 
increase in August retail sales 
further damped inflation fears 
and Uftod the Dow Jones index 
15 points. And on Thursday, 
when a survey of business con- 


ditions from a regional Fed- 
eral Reserve Bank brought 
more good news on inflation, 
the optimism turned rampant 
sending the Dow index up 
nearly 60 points to Its highest 
since February 3. 

But it was too good to last 
Market sentiment is these 
days so fragile that it only 
takes a little bad news to trig- 
ger a wave of selling. 

On Friday morning, that 


news came in the form of 
stro n ger-than-expected figures 
for August industrial produc- 
tion and capacity utilisation. 
Suddenly, the market was in 
flight again: by midday yester- 
day, as tills column went to 
press, the Dow was down 33.98 
at 3919.9. 

Sncfa fickleness continues to 
leave investors without any 
clear lead on the market's 
direction. Some would like to 
believe that the US economy 
has now reached an Ideal state 
in which growth is strong 
enough to support profit 
increases but not so strong as 
to trigger a pick-np In 
inflation. 

Salomon Brothers, the Wall 
Street investment bank, calls 
tills the Goldilocks economy- - 
one in which tbe bears are 
kept at bay - but in the same 
breath dismisses the scenario 
as a fairy tale, warning that 
the market is overvalued and 
set to plunge by 10-12 per cent 

Why the gloom? Salomon 
points out that, in spite of 
recent hiccups, the market is 
now as high as it was at the 
beginning of tbe year - yet 
Interest rates are already 
higher than they were in Janu- 
ary, and are set to go higher 


still. And although tbe current 
wave of merger mania in the 
US may be bullish for stock 
prices, surges in merger activ- 
ity have historically been asso- 
ciated with market tops, not 
market bottoms: witness the 
late 1920s, late 1960s and mid 
1980s. 

If that were not bearish 
enough, it also emerged this 
week that former football star 
and television personality OJ. 
Simpson had quietly been 
cashing in more than 9500,000 
worth of Ms shareholdings. 

Simpson may stand accused 
of the gory double murder of 
his former wife. Nicole Brown, 
and her friend, Ronald Good- 
man, and probably needs the 
money for his legal expenses: 
but it is an ill omen when one 
of tbe best-known figures in 
US popular culture starts puff- 
ing out of the stock market 
Investors can only hope that 
his function as a role model is 
somewhat less than ft was. 

Richard Tomkins 


Monday 3860.34 - 14-47 

Tuesday 3879.86+ 19.52 

Wednesday 3895,33 + 15.47 

Thursday 3953.88 + 58.55 

Friday 


P roperty shares outper- 
formed the wider 
equity market by 
almost 50 per cent last 
year, so the sector was due to 
catch its breath. Its -slight 
underperformance in the first 
half of the year appeared to be 
just such a pause. Yet the sec- 
tor’s d per cent slide over the 
last two weeks - bringing its 
underperformance since the 
middle of July to around io per 
cent - looks like a more seri- 
ous loss of wind. 

The key to this sudden disil- 
lusionment lies with the split 
personality of commercial 
property as a Financial asset. 
When rents are rising property 
has a lot in common with equi- 
ties. Rising rental income 
drives capital values higher, 
just as dividend growth drives 
share prices, making property 
an effective hedge against 
inflation. 

Thanks to the practice of 
long-term leases with upwards- 
only rent reviews, though, 
property provides its owners 
with a fixed income even when 
rents are falling. Under these 
circumstances it has much 
more in common with bonds. 
The bond-like nature of prop- 


Bottom Line 

Property shares lost in space 


UK property 

FT-SE-A Property sector rotative to the fT-SE-A All-Share Index 



Source FT &ap«8t 


erty worked to its advantage 
last year. Property yields fell 
in line with bond yields, which 
meant that values rose even 
though rents were still falling 

But for property values to 
detach from bonds investors 
have to believe that rents are 
going to rise. Optimism on this 
score was enough to keep val- 
ues stable through the first 
half of this year in spite of 
turmoil in the bond markets. 

The snag is that optimism 
about rental growth now looks 
misplaced. In January most 
stockbrokers assumed that 
rents would be rising across all 
types of commercial property 
by the end of the year. Yet up 
to the end of August rents 
were either falling or fiat. 

The upturn in rents looks 
unlikel y to come until the mid- 
dle of next year. Against that 
background the property mar- 
ket looks becalmed. 

If bond yields are reasonably 


stable there is no reason why 
commercial property values 
should actually faff. Rents are 
bound to rise as economic 
recovery takes hold and busi- 
nesses start to expand. But 
that prospect is too for distant 
to justify pushing values 
higher. 


Property company shares 
have suffered twice over. Net 
asset values (the amount 
which could, in theory, be 
reused if the company was bro- 
ken up and its assets sold) 
were forecast to rise by any- 
thing up to 15 per cent both 
this year and next. The oat- 


come this year looks likely to 
be more like 8 per cent. Fore- 
casts for 1995 now range from 6 
per cent to 12 per cent 

Moreover, shares were 
already expensive when mea- 
sured against the value of their 
underlying assets. Before the 
recent slide the sector stood at 
a discount of 7 per cent per 
cent to net assets. With ’no 
immediate prospect of rising 
rents and property prices, that 
rating became impossible to 
justify. 

Even now the sector is 
hardly cheap. The discount to 
net assets has widened to 
around 13 per cent, but that 
compares to a long-term aver- 
age of 20 per cent Since the 
upswing of the property cycle 
is still In its early stages 
shares might be expected to 
trade at a narrower discount 
than the average. Rut they will 
have to foil further before bar- 
gain-hunters step in 


“The outlook for capital and 
rental growth has got a lot 
duller over the summer," said 
Chris Turner, analyst at BZW. 
“Under those circumstances 
the shares are just not cheap 
enough to encourage buyers." 

Even when rents start to rise 
the benefits will not be spread 
evenly across all types of com- 
mercial property. Modern 
office space Is already in shot 
supply and should perform 
well. Yet there is an overhang 
of older offices which could 
take years to let. Retail ware- 
houses are In demand but 
there are plenty of empty hig h 
street shops. 

Property companies which 
own new portfolios and man- 
age their assets energetically 
are most likely to flourish. The 
stock market has already real- 
ls ed as much. Even now Pillar 
and Argent, two of the sector 
favourites, trade at around net 
asset value. 

Alec Pelmore, analyst at 
Kleinwort Benson, said: "If the 
property markets is not help- 
ing. it is the ability of manage- 
ment to add value to their 
assets which really counts." 

Simon London 




FINANCIAL times WEEKEND SEPTEMBER 1 7/SEPTEMBER 1 8 1994 

“nance and the family 



1 1 


n: 

B V 

i 


1 

l 1 


r- 






Jtli3‘4v; v i?! si:-. 

The Jordans: “The process of complaint n daunting’ 

The Jordans’ experience 


I 


I really hate to complain, but . . . 

So you think you’ve had a raw deal but don’t know what to do . Debbie Harrison provides a guide 


f you think you have a 
problem about an 
investment, pension or 
life assurance product 
you need first to find 
out to whom - or what - you 
should complain. Unfortu- 
nately this is no easy task dur- 
ing the present regulatory 
shake-out. 

The Personal Investment 
Authority (PIA) has taken over 
from Fimbra. the regulatory 
body for advisers, and Lautro, 
which regulated life offices and 
unit trust groups. During: the 
transition, you could end up 
dealing with any of them. 

Complaints about company 
pensions are tackled by the 
Occupational Pensions Advi- 
sory Service (Opas), but sev- 
eral ombudsmen continue to 
squabble over territorial rights 
for personal pensions. The box 
below provides contact details 
and telephone helplines for 
bemused investors. 

Second, you should consider 
if your grievances are justified 
or simply a case of bad luck. 
The following common com- 
plaints received by regulators 
and ombudsmen will help you 
assess the merits of your case. 

1. 1 don't know which prod- 
uct to choose. Nor do the regu- 
lators and ombudsman. Their 
job is to correct mistakes and 
deliberate mis-selling - hot to 
give investment advice. 

2. The benefits are abysmal. 
Provided you knew what they 
were at the start and the pro- 
vider or trustees were/are act- 
ing in accordance with the 
scheme or plan rules, there is 
nothing you can do about it 
(but see point 4>. 

3. The investment returns 
are poor. The likely response 
to this is “tough", assuming 
you understood the nature of 
the risks when you took out 
the plan. If you did not, see 
point 4. If you think your fund 
was miscalculated, see point 6. 

4. The investment is unsuit- 
able. You are on better ground 
here. Salesmen must examine 
your financial circumstances 
and requirements before rec- 
ommending an investment 
product. They must also 
ensure you understand its 
nature and associated risks. If 
your adviser failed to do this, 
you should complain. 


Moreover, you should not 
lose out by abandoning an 
existing arrangement in favour 
of a new product. An adviser 
almost certainly is mis-selling 
if, fbr example, he recommends 
a pension transfer plan to 
replace a good company pen- 
sion scheme. 

5. The charges are outra- 
geous. Find oat what they are 
before you sign up. Until Janu- 
ary 1995, providers are not 
obliged to reveal their true 
charges, but good advisers are 
doing so now. Ask how much 
commission the adviser will 
make on the sale, since this 
will eat into your fund in the 
early years. 

6. The sums do not add qp. 
Always query a significant 
shortfall, since this might be a 
simple miscalculation. Early 
retirement pensions are classic 
cases. But the final pay-out on 
a unit-linked or with-profits 
endowment, for example, 
might be less than expected if 
the markets have performed 
poorly in the period between 
your last statement and the 
date the plan matures. Hie 
provider/adviser should have 
explained the risks at the out- 
set (see point 3). 

7. Something fishy is going 
on. Fraud and malpractice do 
occur - for instance, where the 
salesman or adviser has not 
passed on your premiums to 
the provider, or where the 
employer has deducted your 
pension contributions from 
your pay cheque but has not 
sent them to the pension 
scheme. If you suspect this is 
happening, contact the regula- 
tors immediately. 

8. I’ve only just found 
out . . . and the complaint 
relates to an event five years 
ago. You could be out of luck 
here. The pensions ombuds- 
man, for example, usually 
slaps a three-year time limit on 
eligible cases so, if you suspect 
skulduggery or plain incompe- 
tence, act quickly. The PIA 
handles only cases that arose 
after April 29 1988. 

9. The matter is confidential. 
You might be saving for early 
retirement and do not want 
your employer to know - or 
saving for divorce and don't 
want your spouse to know. 
Whatever the circumstances, 


What to say 


Your complaint stands a much 
greater chance of being taken 
seriously if yon have prepared 
your case well and can show 
you have done all you can. 

The regulators and 
ombudsmen suggest the 
following tips: 

■ Write first to the 
compliance officer at the 
company that sold the product 
(in the case of an investment 
product) or to the trustees (for 
a company pension scheme). 

■ Stale clearly the nature of 
the complaint. 

■ Give clear contact details, 
Including daytime telephone 
number. 

■ provide the name of the 
investment or product, the 


date yon took it out, and the 
name of the salesman (if 
relevant). 

■ Quote an relevant policy 
and reference numbers. 

■ Photocopy letters and 
supporting material. 

■ Impose a deadline for the 
reply. You should receive an 
acknowledge meat of your 
letter within seven days, but 
allow two months for the 
actual Investigation before 
proceeding to the regulator or 
ombudsman. 

■ Check to see if there is a 
consumer action group that is 
co-ordinating complaints. (See 
The Jordans’ experience). 


Where to go 


If in doubt about a life policy, 
personal pension or invest- 
ment. call the PIA consumer 
helpline <071-538 i860) or the 
central register of the Securi- 
ties and Investments Board 
(SIB), the industry's chief regu- 
lator (071-929 3652). For com- 
pany and personal pensions, 
telephone Opas (071-233 SOSO), 
rj personal Investment 
Authority: Hertswere House, 
Hertsmery Raid. London E14 
4AI3. teh 071-538 8860 (this is 
also Uio number for the hel- 
pline). fax 895 8579. The PIA 
cm direct complaints to Fim- 
bra and Lautro iT necessary-. 

O PIA ombudsman: l London 
Wall. London EC2V 5EA 
(071-600 3H0L fax 600 4727). 

C Occupational Pensions 
Advisory- Service (Opas): First, 
contact vour local Citizens 
Advice Bureau. Opas is at 11 
Bclurave Road, London SWl\ 
1RB (071-553 WU80. fax 233 8016). 


□ Pensions ombudsman 
enquiries should first go via 
Opas. The ombudsman is at 
the same address (071-834 9144, 
fax 821 0065). 

G Insurance ombudsman: City 
Gate One, 135 Park Street. Lon- 
don SEI 9EA (tel: 071-928 7600, 
fax 401 8700). 

□ Building society ombuds- 
man: Grosvenor Gardens 
House, 35-37 Grosvenor Gar- 
dens. London SW1X 7AW (tel: 
071-931 0844, fax 931 8485). 

□ Banking ombudsman: 70 
Gray's Inn Road, London 
WCIX 8NB (tel- 071-404 9944, 
fax 405 5052). 

G Investment ombudsman: 
Complaints must go through 
lmro. Broadwalk House, 6 
Appold Street, London EC2A 
2AA (teL- 071-628 6022. fax 920 
9385). 

D SIB: Gavrelle House. 2-14 
Bunhill Bow, London EClY 
8RA (072-638 1240, fax 382 5900). 


your case stays confidential. 

ID. My friend has a prob- 
lem. -but he is too nervous/fll/ 
old to complain himsrff You 
can aid: on behalf of relatives 
and friends provided you 
explain the position clearly to 
the regulator or ombudsman. 

You should check whether- 


your investment is covered. If 
you are not sure^use one of 
the enquiry numbers in 
“Where to go” on this page. 
The PIA Handipa nf e assurance 
(including endowment poli- 
cies), personal pensions, unit 
trusts, personal equity plans, 
guaranteed income bonds, 


investment trust savings 
schemes, offshore funds (eg, 
gilt and bond funds), shar e 
dealing, portfolio management, 
broker funds, business expan- 
sion and enterprise investment 
schemes, and traded options 
In some cases, you could be 
referred to the investment 


ombu dsman via the Invest- 
ment Managers' Regulatory 
Organisation (lmro). the over- 
seer for investment managers, 
or to one of the other regula- 
tors. Company pensions and 
certain aspects of personal pen- 
sions are covered by Opas and 
tha p ensi ons o mb u dsman 


Kenneth and Dilys Jordan 

discovered, to their dismay, 
that even where you follow the 
complaints procedure to the 
letter, things may not go 
smoothly. Their complaint, 
against retirement investment 
adviser Knight Williams, is 
still under consideration after 
two years. 

In February this year, the 
Jordans set up the Knight Wil- 
liams investors' action group 
and face the latest to a series 
of meeting with regulators 
when they meet SIB, the chief 
watchdog, on Thnrsday. Jor- 
dan says: “The process of com- 
plaint is daunting in the 
extreme, and few have the 
energy or resources to pursue 
the matter.” 

He talks calmly about verbal 
complaints and written com- 
plaints to the local adviser’s 


office, then the same details 
repeated to the company’s 
headquarters, followed by end- 
less rounds with Fimbra and 
its arbitration system. 

“Persistence may convince 
Fimbra that there is a case for 
arbitration, in which ease they 
send a leaflet explaining that 
the complainant has to submit 
two copies of all relevant docu- 
mentation,” says Jordan. 

He adds: “In some cases, this 
might involve searching 
through documentation as 
thick as a telephone directory 
and selecting what one feels is 
apposite, without any assis- 
tance.” 

Dilys Jordan feels that 
retired investors often do not 
have the resources and experi- 
ence to present a businesslike 
case - hence the reason for the 
action group. 








The Halifax International Bond is a new, high interest 
investment from Halifax International (Jersey) Limited. 

It offers one of the highest returns around for this type 
of investment. Given it’s such a good rate, there are a couple 
of limitations. 

The Bond is issued for just one year, and is only available 
for investments of £150,000 or more. 

As it’s a limited issue it’s bound to be extremely popular, 
therefore it’s first come, first served. There’s no tax deducted 
you can rest assured your money is in safe 
_ '--W hanc k wi 1 * 1 the backing of the world’s 

w W biggest building society. 

For more details, invest a little time 


i .idling in tbe coupon. We think you’ll 


^;.^^find it a most rewarding experience. 




INTERNATIONAL 

INTEREST RATES MAY CHANGE. NTEREST IS PAD GROSS AT THE END OF TIC TERM. GROSS MEANS WTTH0UT TAKING ACCOUNT OF THE DEDUCTION OF TAX. IT WILL BE THE RESPONSIBILITY OF AN INVESTOR 
TO DISCHARGE A UABLTIY TO TAX ARISING FROM THE RECEIPT OF GROSS NTEREST. OPE WITHDRAWAL IS ALLOWED SUBJECT TO LOSS OF THE EQUIVALENT OF SK MONTH’S INTEREST ON THE AMOUNT YOU 
TAKE OUT. EARLY CLOSURE IS ALLOWED SUBJECT TO THE LOSS OF SIX MONTHS INTEREST. F YOU CLOSE YOUR BOND BEFORE IT HAS BEEN OPEN FOR SK MONTHS YOU WU GET BACK AT LEAST YOUR 
INITIAL INVESTMENT. FULL DETAILS AND CONDITIONS OF TFE ACCOUNT WILL BE SENT BY RETURN. COPIES OF THE COMPANY’S LATEST AUDITED ACCOUNTS ARE AVAIABLE FOR INSPECTION ON REQUEST 
FROM THE ADDRESS BELOW. THE AMOUNT Of PAD UP CAPITAL AND RESERVES OF THE COMPANY IS f 18.1 MLUON. DEPOSITS MADE WITH OFFICES OF HALIFAX HTERNATlONAL (JERSEY) LOOTED ARE 
NOT COVERED BY THE DEPOSIT PROTECTION SCHEME UNDER THE BANKNG ACT 1987. HOWEVER, HALIFAX BULGING SOCIETY HAS AN OBLIGATION UNDER THE BULDNG SOCIETIES ACT 1986 TO 
DISCHARGE THE LIABILITIES OF ITS SUBSIDIARIES IN SO FAR AS THOSE SUBSOAflES ARE UNABLE TO DISCHARGE THEM OUT OF THEIR OWN ASSETS. HALIFAX BLHLDWG SOCIETY HAS TO THS EFFECT 
PROVIDED A CONFIRMATORY NDEMfflY UNDER SEAL TO HALIFAX INTERNATIONAL (JERSEY] LIMITED. THE OFFICE WITH WHICH STERLING DEPOSITS ARE PATTED TO BE MADE. THE PRINCIPAL PLACE OF 
BUSINESS AND THE BUSU'ESS ADDRESS OF HALFAX INTERNATIONAL CERSEY) LMTED IS P.0. BOX 664. HALIFAX HOUSE, 31-33 NEW STREET, ST HELIER, JERSEY. CHANNEL ISLANDS JE4 8YZ. 


V 


x 


IV WEEKEND FT 


FINANCIAL TIMES 


WEEKEND SEPTEMBER 17/SEPTEMBER IS 199* 



ARE YOU LOOKING 
FOR SMALL 
COMPANIES WITH 
BIG FUTURES? 


FINANCE AND THE FAMILY 


The Week Ahead 


Better viewing at MAI 


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MONDAY: mat , the money 
broker and television group, is 
expected to reveal pre-tax 
profits of between £38m and 
£109m for the year to June, 
against £80-2tn last time. 

It win be the first period 
including results from Anglia 
Television. The tax charge Is 
set to rise from 37 to 44 per 
emit, wm ri np a fall fa e qiTntng w 

per share. 

The dividend is likely to rise 
hum 6-9p to between 7.25p and 
8p. 

TUESDAY: A spread of 
businesses which 
retail and industrial logistics, 
business that! and chemical 
d istributi on H a ys, th e 
business sendees group, a good 
indicator of the pace of 
economic recovery. 

It is expected to report 
annnai pre-tax profits up from 
£66. an to about £88m, helped 
by a strong rebound in 
performance from its network 
of personnel recruitment 
agencies. 

TUESDAY: Tesco, the UK's 
second-largest food retailer, is 
expected to announce an 
Increase In interim pre-tax 
profits to about £247m (from 
£235m last year), adjusting for 


new depreciation poUdes and 
before £4m property losses. ‘ Y. " 

Some recovery iumx&m is . 

expected bto uncertainty, about 
the ofthis, andover tha - 
fortunes of the Catteau chain 
in France, is reflected in the 
wide range of forecasts - from 
£240m to i- 
WEDNESDAY: Half-year 
figures for British Aerospace . 
will show a dramatic 
tum-round from last yearrBut 
much of the headline 
improvement will came from 
the one-off profit on the sale of 
the Bover car group to BMW. 
This is estimated by some 
analysts to be in the region of 

Underlying profits are likely 
to be in the region of £7Qm, up 
from £2Qm in the first half of 
last year. A strong 
performance from the defence 
operations will be held back 
race again by losses in BAe’s 
turboprop commercial aircraft 
subsidiary. 

The dividend might also be 

increased from an interim iUp 
last tim e to around 3-75p. 
THURSDAY: Wm Morrison, 
the regional grocery superstore 
group, is forecast to announce 
an 18 per cent increase in 


Name: 

(Block capitals please) 


Address: 


An ill wind . . . 




IBRADFIELD 


Beys’ and Girts' Sixth Form 
Entrance Scholarships 

A number of awards (if necessary augmentable up to 
full fees) will be made for entrance In September 
1995. Admission by interview and competitive 
examination to be held in November 1994. 

Further details and a prospectus may be obtained from: 

The Sixth Form Admissions Secretary ■ 
Bradfield College 
Reading 

Berkshire RG7 6AR ^ 

Tel: 0734 T44203 /f 


I t might have been a bad 
day for their co m pa n y's 
shares, but directors at 
DBS Data Research Ser- 
vices spotted a golden opportu- 
nity when prices in the scan- 
ning equipment producer 
plunged by 58 per cent 
On Tuesday, the shares fell 
56p to 40p after the Milton 
Keynes-based company warned 
that uncertainty in education, 
its biggest market, had led to 
lower than expect e d sales. But 
after coming to market at llOp 
in a placing in May, the com- 
pany’s s Imres represented 
good value to at least two' DBS 
directors. 

The following day, Stuart 
Henderson bought 50,0wat 
40p, a holding of 0.14 per cent, 
through Jasmine Trustees, a 
trust of which he is the sole 
benefidary. Amanda Croker, 
the wife of director Patrick 


Richard Wqlffe 


An international Investment 
portfolio. 

Flviiiuig HiRvhip Fund otfrn you die 
uhouf of sruem inveuuient tumh. 
Wha‘% nwit, iwu>;h« N rt w <vn hi nth 
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FLEMING 


FLAGSHIP 


International 


Investments 


Global investment opportunities. 

Through -Ml offim m 27 (iximrin nuririuiJr. 
w iniw in >0 uujor «vtnnrleii uicludiug 
the tot growing economies nl’ Luni Atucriia 
ami South East Asia, 


Flemings — an excellent 
V U reputation for investment 
■|p management. 

Founded in 1873. Finning! is now 
a wurld-ronowned in vestment 
nal bank uicfa over US S 7n billion 

s[l under management. Its sister 

company. Jardme Fleming, is the 

largest international investment 
kuik in the Far Eat and has an Hiipmuw 
longterm performance record 


If you woukl hkc to rrccnv further mfbnrarinn 
»*n Fleming Fliphip Fund please either 
return the toupou below, or telephone our 

CEetu Services Department on (352) 40 50 40. 
Yon may abo fine yotrr request on (352) 49 23 V2. 



half-year, pre-tat profits from 

£88^m about B45m. Analysts 
believe the group has had 
strong sales growth, wttb same 

Im p rmi Bmwit hi margins! 

THURSDAY: Guinness, the 
brewing and spirits group, is 
expected to report pre-tax 
profits of around £320m for the 
first half. Last year's result, 
published at£32Qm, will be 
re-stated at £305m to allow for 
ra Increase In pension 
contributions. 

Operating profits from both 
spirits and brewing are 
expected to be fairlyJlat, but 


' fntaxe&t charges will be lower 
folfifttinglast year's cash 

inflow. ... 

.. . The - City will also be be 
•watddngfor-any ■ 
ranauncemart on a new 
mamagihg'dfrector for United 
Distfllers to replace Crispin 
Davia, wbo radgnad. almost a 
year a go. 

THURSDAY: BMC, the world’s 
biggest concrete company, 
reports half-year figures which 
are expected to show a sharp . 
rise in UK profits. The market, 
however, wHl be more 

interested to hear If the beady 
pace of German growth has 
slowed. 


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pre-tax profits could be just 
over £90m, compared with 
£6L6m in the first half of 1993. 
FRIDAY: Hepwarth, the day 
pipes rad refractories group, Is 
expected to report pre-tax 
profits of about E35.5mm.the 
first half of 19M, compared 
with. £27 -5m. 

Analysts will be looking for 
the effects of stiff eastern 
German competition, while the 
group also could reveal 
weakness in the day pipes 
market The dividend is fflraly 
to be unchanged at 55p. 


American ThMt 
Aaqr Hokfco* 
MM OUkMtan 



Croker, acquired 46,000 at 48p 
to lnraease her holding to 
. 51,400. 

By coincidence, the same 
day saw managing director 
Maiwiim Br ighton make a sift 
of 358,751 shares to the Milton 
Keynes Community Trust, 
which offers grants to local 
charities. He added that he 
would soon be buying more 
shares at what he called the 
“silly low prices” to add to his 
38 per cent holding of 13£m. 

DBS supplies scanners to 
capture hand-written data, 
such as ticks on multiple 
choice forms, for processing by 
computers. Turnover for the 
28 weeks to July 15 fell from 
£6.87m to £5.76m as sales to 
schools, which account for 70 
per cent of turnover, dropped 
by 14 per cart. 


Atan— c Group BrtMa Thuadny 

Burnt DwulupmuiiU BSC W4*wschv 

SoowlWdhia n/8 Tbind^r 

"»y— * ft-wnp BSC Tuudqr 

CLS HUUMtaqa.-. itia Thuaday 

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DM . Thuaday 

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tkrnao, haal Ma«nM |ta«ii 4 >u|i) > A 
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Information C^oupon 


We*r i-nnipbrrr in IIUXTK CAFFrALS, 

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S ?8 



















FINANCIAL TIMES WEEKEND SEPTEMBER 1 7/SEPTEMBER 1 8 1 994 


weekend ft V 


finance and the family 



Lenders take flight 

Interest rate rise hits fixed mortgages , reports Debbie Harrison 


F ixed-rate mortgage 
offers were witti- 
drawn by the score 
this week as lend- 
ers reacted to the 
0.5 per cent increase to the 
base rate announced on Mon- 
day by Kenneth Clarke, the 
Chancellor of the Exchequer. 
The new base rate is 5.75 per 
cent 

Fixed mortgages guarantee 
that rates will not go up or 
down for a specified period and 
are, therefore, particularly 
attractive for borrowers who 
need to keep careful control 
over the family budget 
Independent mortgage advis- 
ers say borrowers should act 
quickly to take advantage of 
the remaining good deals. “But 
watch out for the small print," 
warns Ian McKenna, a consul- 
tant with mortgage and pen- 
sions adviser Blyth McKenna. 
“Some of the cheapest fixed 
rates are offered on the condi- 
tion the borrower takes out 
expensive buildings and con- 
tents insurance." 

Borrowers considering a 
fixed rate should treat with 
caution any scheme that 
imposes a deadline by which 
the deal must go through. 
McKenna says: "Several of the 
largest building societies do 
this, and it creates severe prob- 
lems for borrowers stuck in a 
chain who are not able to com- 
plete in time.” 

You should bear in mind, 
also, the early redemption pen- 
alties associated with fixed 
rates - usually worth three to 
six months' payments. But lan 
Darby, marketing director at 
mortgage adviser John Char- 
col, points out that redemption 


Table 1: Fixed rate mortgages still available 


Provider 

Rate % 

Until 

Fee- 

RP- 

Ins*** 

Britannia 

5L50 

1.9.96 

£195 

3mtfts 

Yes 

Britannia 

6.99 

1.10.97 

ms 

6mths 

Yes 

Britannia 

8.15 

1.9.99 

£275 

Gmths 

Yes 

John CharcoJ 

4.95 

1.7.96 

£295 

3mths 

No 

John Charcol 

6.49 

1.7.97 

Nil 

3mths 

No 

Lambeth 

8.15 

1.9.99 

£250 

6 ruths 

Yes 

Leeds & Hof. 

9.25 

10 yrs 

£295 

6mths 

No 

NS P 

8.45 

1.8.98 

£250 

6mths 

No 

N&P 

8.75 

1JL99 

£250 

6mths 

No 

Ntlwn Rock 

5.49 

1.6.96 

£250 

4mths 

Yes 

Yorkshire 

1.90 

1.5.95 

£250 

3mths 

Yes 


Souca: Un Chared * Lander's tea - Hadamp — i penny — Con«a*ny bdga S cent n> 


Table 2 : Standard variable mortgage rates up 


Provider 

Old rate 

New rate 

New 

borrowers 

Existing 

borrowers 

Abbey National- 

7.74 

8.09 

Immetflaie 

Early Oct 

BNP Mortgages 

7.59 

737 

4 Oct 

3 Nov 

Nationwide 

7.74 

8.14 

16 Sept 

1 Oct 

Northern Rock 

7.74 

8.14 

14 Sept 

1 Oct 

Northern Bank 

7.64 

8.14 

13 Sept 

13 Sept 


SmaceMonayttoa - fotnrey iw lor c jiijwi » anal i Kaw rtana. 


penalties are a standard fea- 
ture of most mortgage prod- 
ucts - with the exception of 
variable rates. 

The main reason for getting 
out of a fixed rate would be if 
rates fell dramatically,” he 
says. “We believe that the 
mortgage market has bottomed 
out and that rates will rise, not 
fall" 

Owners who want to sell 
should not delay in the hope of 
price rises. Darby says: “House 
prices will remain static apart 
from a few pockets of move- 
ment where demand outstrips 
supply. 

“Now is a good time to move 
- mortgage rates are very com- 
petitive. and the ratio of 


income to house prices is at as 
all-time low." 

Fixed rates In detail. The 
Royal Bank of Scotland has 
put up all of its fixed rate 
schemes. Its three-year fixed 
has gone from 7.95 per cent to 
8.49. and the five-year fixed 
from &39 per cent to 9-24 per 
cent, according to Moneyfacts. 

National & Provincial has 
put up some of its fixed-rate 
offers by 0.4 per cent to 0.6 per 
cent but bas cut its one-year 
fixed rate for first-time buyers 
by 0.1 per cent to 1.75 per cent 
The lender says this reduction 
is not at the expense of any 
changes in the mortgage's 
terms and conditions. 

N&P also announced a new 


FIRST PUBLIC OFFER 


THE NEW M&G 
MANAGED 
GROWTH PEP 

• No initial charge 

• No withdrawal fee after 5 years 

Take advantage of M&G’s investment 
expertise in UK and overseas markets all 
within The M&G PER 

Register now for details by returning the coupon below or 
by telephoning 

( 0245 ) 390 000 (24 hour service) 


To: The M&G Group, PO Box 111, Chelmsford CM1 1FR. 

Please send me details of your new PEP offer to be launched in October 

and how to transfer any non M&G PEP. 

NO SALESMAN WILL CALL _ L ^ 

Vbu should contact your Independent financtel adviser (if you have one) before investing 


I F 


INITIALS 


SURNAME 


address 


POSTCODE 

MtfavsMOto ** motions e/ me HopiMIc eftobrid 
im. nntf make v our OtS MdW rnmtM » tramami 

toS *H< *twux [XOeSjer* BT SOlWOO* OB»«S UlrCXl!»eM»aflCj »e*JCt*Sld MSO 

TH* !*«• flt untt a* mconw fcom Bwn can go 


INITIAL OFFER CLOSES 5PM 
FRIDAY 28TH OCTOBER 1994 



four-year fixed at 8.45 per cent 
for borrowers who have a mini- 
mum deposit of 10 per cent 

Meanwhile, ScotLife Home 
Loans and the West Bromwich 
have launched jointly a 6.99 
per cent fixed available 
through independent advisers. 

Providers to withdraw their 
fixed-rate offers include First 
Direct, Confederation Bank, 
Ipswich building society, First 
National building society, 
Mansfield building society, 
Household Mortgage Corpora- 
tion. Bank of Ireland (Northern 
Ireland). Bank of Scotland and 
Centre Bank. TSB has with- 
drawn some - but not all - of 
its offers. 

Few leaders announced 
changes to their variable-rate 
mortgages - most are sitting 
on thg fence until the Halifax 
rates come out next week. Of 
the providers that did. the 
average rise was 0.4 per cent, 
taking the typical figure to 8.14 
per cent (see table 2). 

In practice, advisers tend to 
regard these rates purely as a 
benchmark. With so many 
good fixed-rate and discount 
schemes remaining on offer, 
borrowers who shop around 
see little attraction in an 
undiscounted variable rate. 

Elsewhere in the savings and 
investment market, there were 
few signs of movement Ranks 
and building societies said they 
would wait for Abbey National 
and the Halifax to go public on 
savings accounts before adjust- 
ing their own rates. 

The exceptions included Bar- 
clays and Northern Rock, 
which increased interest rates 
by between 0.1 and 0.35 per 
cent 


Crunch 
nears 
on BT3 


I nvestors in BT3 will get a 
letter next week asking 
them to pay the final 
120p instalment on their 
shares. The first two payments 
totalled 290p against a market 
price now of around 264p. 
Dealing in the partly-paid 
shares will end on September 
30. 

Cheques must be received by 
October 6 in order to meet the 
payment deadline of October 
11. Bat some brokers and 
share shops are asking for the 
money well before the end of 
September. 

If a shareholder foils to pay 
np in time, tbe Treasury wifi 
take back tbe shares and sell 
them. The shareholder stands 
to get back a maximum of 
290p less costs but in practice, 
the amount paid is likely to he 
less: the market price less 
costs. 

If you want to pay the final 
instalment, just send off your 
cheque together with the call 
notice asking for the instal- 
ment in time. If you want to 
sell without paying the final 
instalment, then the sooner 
yon do so, the better many 
hrokers have a selling dead- 
line well before the end of Sep- 
tember. Bnt wait until yon 
have got your call notice. 

If yon want to keep a stake 
in BT but cannot afford to 
make the extra payment, you 
need to sell some of your part- 
ly-paid shares In order to 
mafcp the additional payment 
on the others: an operation 
known in the trade as canni- 
balisation. Personal equity 
plan-holders should check they 
have cash available. 

Gillian O’Connor 





THE NEW TEMPLETON CHINA GATEWAY FUND 

Now there's a new way in to the huge growth potential of China, Taiwan and Hong Kong that offers 
the renowned stock picking flair of Templeton: the China Gateway Fund. Take a look at these dazzling 
statistics: China has the world's fastest growing economy and foreign trade has grown at a staggering 
15% per annum for the last ten years. What’s more. China offers some of the lowest labour costs to be 
found. Add to this a wealth of natural resources, a young entrepreneurial workforce - as well as a 
domestic market of over a billion enthusiastic new consumers - and you have an economic phenomenon. 
And there’s no one better qualified to help you take advantage of it than Templeton, which is part of 
tbe Franklin/Templeton group with over SI 14 bn under management worldwide and which has offices 
and experience throughout the region. Minimum investment is just £3,0(30 or equivalent - which means 
die door's now wide open to a whole new investment world. 

For more details, talk to your financial adviser. Alternatively, fax or send the coupon below 
to your nearest Templeton Service Office or call us on 






Tel: 44 596 431255 
Fax: 44 32 228 4506 


Luxembourg 

Tel: 352 466 6671 
Fax: 352 466 676 


I meson should remember dm put performance if not necessity i guide to the future. An investment in the Templeton Global Strategy hinds may fluctuate and 
si moor may not get baA the amount he bas invested. Currency mouemcnB may also cause fluctuations in value. The protections oF die UK regulatory system 
do not apply to an imestment in the Templeton Global Sms epy Funds and compensations under the UK Investors Compensation Scheme wiflwot b« available. 


r. 


TO: Templeton Registration Office. FREEPOST, EH2721. 17 Napier Square. Livingnoo EH54 5BR. 
Pleatc send me details of the Templeton China Cateway Fund. 

Name 


FT 17.9A4B 


n 


Address 


Postcode 



Templeton 


L 


Issued by Templeton Investment Management Limited. Member c-f IMKO and (he Templeton Marketing Croup 


J 


Morgan Grenfell. 


UK Performance Tax-Free. 

|uK EQUIT 


SINCE 

LAUNCH 

Ss s lift 

MORGAN GRBVFELL 
UK. EQUITY INCOME 

£ 2,320 

* 1,667 ||||k 

|pj| UK EQUITY INCOME 
^ SECTOR AVERAGE 

£ 1,809 



Investors looking for an excellent invest- 
ment opportunity should now be considering 
the UK. 

To capitalise fully on the potential for 
growth and income you need look no 
further than the Morgan Grenfell UK Equity 
Income Unit Trust. 

This remarkable UK Trust has delivered 
consistently outstanding performance since its 
launch on April 1 1 th 1 988. £ 1 ,000 invested 
then would now be worth £ 2320 *, plaring it 
2nd out of 89 funds in flic same sector. 

What’s more, the returns from this Trust 
can be yours totally free of tax by investing in 
the Morgan Grenfell UK Equity Income PEP. 

UK - A GROWTH OPPORTUNITY 

Wc believe that the prospects for flic UK 
economy arc now better than they have been 
for many years. Today , companies arc leaner. 


tougher and poised to profit from a period of 
steady, sustainable growth. 

Don’t miss the opportunity to benefit 
from the UK’s growth potential with 
Morgan Grenfell UK Equity Income Unit 
Trust. For more details, talk to your 
Independent Financial Adviser today. 
Alternatively, return the coupon or telephone 
us now on 0800 282465, 

To: Morgan Grenfell Investment Funds Ltd., 

10 Finsbury Circus, London EC2M HIT. 

Please send me fun her details of the 
Morgan Grenfell UK Equity Income Unit Trust & 
Morgan Grenfell UK Equity Income Unit Trust PEP. 


&*: 


■r<r 

.\'i* 


Full Name . 
Address 


.Postcode. 


FT 17/9794 



■Seurw Miropd offer lo bid net incoma reinvested since loundi (1 1.4.88) and 1.9.89 to 1 9 94. 

Ktra remember fhat past u pfotmone n is not necesicrity a guide to taire performance. 

The %ek* of unib and income from hem may foil as well as rise, mid you moy not get badt die origfod amount invested Tax rate axi refcb i 


... _ _ , rirtfing mid mrer be sub|Bd to change. Tmt value w3l depend ai individud tiro 

Issued by Morgan GrenfJ Imedmert Fimds Ue, 20 firsbory Greus, Lsndcn EC2M fUT. Member of IMKO. Morgan Gceni 
’ Mergcsi Grenfell UiiJ Trust Mangers lid *bkh is a member of IMRO.lAUIHO 


is on appointed representative of Merges) Grenfell I 


orcwnatanccs. 

Grenfef tnvas&nenl Punch Lid 
endthoAimF. 


.faC«C 

SB 


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VI WEEKEND FT 


FINANCIAL TIMES WEEKEND SEPTEMBER 17/SEPTEMBER 18 1994 

FINANCE AND THE FAMILY 


T he myth that unit trusts 
arc a boring, cloth cap 
investment may linger 
in the golf clubs of the 
land but it is not a view 
held by the largest investment man- 
agement firms. Eight of the 10 
investment managers profiled 
recently in the Weekend FT offer a 
degree of portfolio management 

based on collective investments. All 

insist that the investors who use 
these services benefit from their 
expertise just as surely as wealthy 
investors with bespoke equity port- 
folios. 

Peter Rees, marketing director of 
Rothschild Asset Management, 
says: “The similarities between 
Libra (the RAM unit trust manage- 
ment service] and what we provide 
for high net worth individuals are 
remarkably close. Tlie groups that 
decide our asset allocation for cli- 
ents are the same, whether you are 
coming through Libra or through 
the private client service or as a 
large institution." 

Simon White, managing director 
of Kleinwort Benson Investment 
Trusts, makes the same point. "The 
asset allocation of our unit and 
investment trust service will be 
determined to a large extent by the 


Get the best while paying less 

There is more than one way to tap the expertise of top investment managers, says Joanna Slaughter 


investment committee, and it will 
be a reflection of our views.” 

The largest fund management 
firms tend to offer three basic col- 
lective fund services. Some manage 
a specific unit trust, a core fund 
designed to replicate the portfolios 
of their wealthiest private clients, 
and a select few bolt on additional 
private client services. Others run 
portfolio services which provide cli- 
ents with a managed basket of col- 
lective funds. 

Schraders is a passionate advo- 
cate of unit trusts, arguing that 
they provide a spread of risk which 
only the seriously wealthy can 
achieve from a direct exposure to 
equities; that they streamline 
administration: and that they offer 
considerable financial advantages. 

John Henderson, the managing 
director of Schroder Personal 
Investment Management, says: “1 
could wax lyrical all day about the 
tax benefits of unit trusts.” He 


points out that they are exempt 
from capital gains tax and that. If 
the annual fee Is taken from the 
fund's income, then investors effec- 
tively are getting income tax relief 
on it. Moreover, annual fees are not 
subject to value added tax, unlike 
the charges for managing directly- 
invested portfolios. 

The Schroder World fund is the 
one used for private clients whose 
main investment objective is 
long-term capital growth. "Provided 
the clients' objectives match the 
objectives of the trust, the World 
fUnd Is appropriate for all UK tax- 
payers." says Henderson. 

Minimum investment is £1,000. 
but investors with £100.000-plus are 
offered many elements of the firm's 
private client service. They have 
two named investment managers 
and a stream of information 
throughout the year. Schroder also 
will liaise on bed and breakfasting 
units, so clients can mop up their 


BUDGET SERVICES FROM BIO-NAME MANAGERS 


Manager 


Service 


Min 


Schroder 

World fend u/t 

£1,000 

Mercury 

Portfolio u/t 

£10,000 

Kleinwort Benson 

Unit & InvsL bust services 

£75,000 

Cazenove 

PortfoSo u/t 

£5,000 

Baring 

Portfolio uA 

£500 

Managed fends service 

£20.000 

James Capel 

Managed fields portfolio 

£25,000 

Rothschild 

Libra unit trust portfolio 

£50,000 

Credit Suisse 

Investment portfolio u/t 

£5.000 


High income portfolio u/t 

£5.000 


TAB MM* sha m thm n Miun sum 
i TAtt nMHuiff ^un 


IM Bust tfor data MB ml mktt 


w d * a to accost Vw pr M> dM mt/amti m a/ mama or no tooting tntma 
m array to a rati tnatmat mtom tooportibto of a —dnytuhin tier*, or to a 
■dSflb net pttoatr tiara tanfcn. AMamcthat/. H tuyo a frmagoe tod purffato 


CGT allowance, and will arrange for 
them to convert part of their hold- 
ing each year into a personal equity 
plan. 

Mercury's answer is the Portfolio 
unit trust. Richard Royds, manag- 
ing director of Mercury Fund Man- 
agers. describes it as “a unit trust 
designed for the private clients we 


used to have to turn away. It simply 
follows the strategy that the private 
clients get. It is not a white-knuckle 
ride. It is a safe and sound approach 
that has done very welL” Mercury 
has now launched a complementary 
Income Portfolio fund. 

The firm's minimum investment 
Is £10,000. but this sum opens the 


door to some private client services. 
Two portfolio advisers are available 
to investors and they get quarterly 
reports, with the fund's portfolio 
listed as if it were their own. 

Royds says: "There are some 
great advantages with a unit trust 
because one of the problems you get 
with a private client portfolio is 
that you are constrained by tax 
from trading. We have a few people 
who have invested more than £lm 
in the Portfolio trust because they 
like the CGT structure so much." 

The Cazenove Portfolio unit trust 
(minimum investment £5,000) does 
not offer extra private client ser- 
vices but it, too, provides a mirror 
image of a wealthy private client 
portfolio. 

Harry Henderson, managing 
director of Cazenove Unit Trust 
Management, says: “The fund abso- 
lutely adopts the Cazenove asset 
allocation and sector allocation. If 
CGT is not a consideration, this is 


the way we think a private client 
portfolio would perform." 

Similar c laims are made on behalf 
of the Credit Suisse Investment 
Portfolio fund (minimum £5,000), 
and the Baring Portfolio fund (mini- 
mum £500). Baring also joins Roths- 
child, James Capel and Kleinwort 
Benson in offering a collective 
funds portfolio management service 
with trusts chosen from the whole 
marketplace. In contrast the unit 

trust management service that 
Schroder offers to investors with 
more than £500,000 is confined to 
the firm's funds. 

The minimum investment for the 
Baring service is £20,000; at Capel, it 
is £25.000. Investors must have 
£50,000 for Rothschild's Libra ser- 
vice and £75.000 for Klelnwort's unit 
and investment trust portfolio man- 
agement Fees are I per cent at Bar- 
ing and Rothschild, a minimum 
£200 a year at Capel and a minimum 
£250 at Kleinwort 

Clearly, the message is: do not be 
intimidated by the investment fig- 
ure required by leading private cli- 
ent fund managers before they will 
provide a bespoke portfolio. There 
is more than one way to secure 
their asset allocation and stock- 
picking skills. 


M ost banks 
admit, unoffi- 
cially. that 
some of their 
less affluent 
private customers are more 
trouble tlian they are worth. 
But all want to keep the ones 
with large balances who are 
suitable targets for other finan- 
cial services. Measures to 
retain them range from cash 
incentives to promises of a bet- 
ter service. 

Earlier this year. Abbey 
National halved its authorised 
overdraft rate, while Midland 
bank promised to pay custom- 
ers £10 for each failure to meet 
certain standards of service in 
transferring a current account 
from another bank. 

Barclays bank bas just 
announced that it Is improving 
its complaints system, it was 
the subject of bad publicity 
earlier this year after a cus- 
tomer committed suicide. 

"The way we handle com- 
plaints is a vital part of our 
efforts to Improve customer 
service," said Chris Lendrum. 
deputy managing director of 
UK banking services. “Handled 
badly, a customer may under- 
standably take his business 
elsewhere." 

One frequent complaint by 
readers is that branch staff 
sometimes are unable to pro- 
vide even such simple informa- 
tion as how to complain. Here. 


How to make your 
bank really listen 


Scheherazade Daneshkhu on ways to complain 


then, are the complaints proce- 
dures for some of the UK's 
largest banks. Tbey sound 
good - but let us know if the- 
ory differs from practice. 

■ Barclays 

The bank is setting up a 
National Complaints Initiative 
in branches to handle both per- 
sonal and business complaints. 
Staff will complete an “action 
form" for customers who com- 
plain in person and who will 
be given a copy for reference. 
Telephone and written com- 
plaints will receive a response 
within 24 hours. “In complex 
cases, this may initiall y taka 
the form of a holding letter," 
says Barclays. 

B Bank of Scotland 
It has a three-stage process. 
First, make the complaint (In 
person, by letter or telephone) 
to the senior manager of the 
branch where the problem 
arose. If you are unhappy with 
the reply, ask the branch for 
the name and address of the 




ComPLA'rf^J 



regional manager responsible 
for the branch and write to 
him. If the complaint remains 
unresolved, take it to the rele- 
vant general manager. 

■ Midland 

Go first to the branch man- 
ager. The complaint will be 
answered within two working 
days, or an acknowledgement 


sent stating how long the mat- 
ter is likely to take. 

If you want to take it fur- 
ther, write to Derek Stafford, 
Customer Relations Manager, 
Midland Bank pic, Head Office, 
Poultry, London EC2P 2BX 
(the letter will be acknowl- 
edged within two working 
days) or telephone the bank's 
customer service centre on 
0345-707 070. 

Calls are charged at local 
rates and are recorded “to pro- 
vide conclusive evidence in 
cases of dispute". 

■ Lloyds 

Complain first to the branch (if 
you telephone outside working 
hours, leave a message on the 
answering machine and your 
caD wiU be returned the next 
working day). If the matter is 
not resolved, either write to 
the regional executive director 
(the branch will provide the 
name and address) or tele- 
phone customer services at 
head office on Freephone 


0600-147 789. 

Complaints about credit 
cards are handled by the 
Senior Manager, Card Services, 
Essex House, Southchurch 
Avenue, Southend-on-Sea. 
Essex SS99 3PP. The local 
branch will deal with com- 
plaints about a Lloyds* pay- 
ment card. 

B National Westminster 
Branch-based complaints are 
handled "immediately" by the 
branch but, in complex cases, 
it wifi take a maximum of two 
days. If you want to take the 
matter further, write to bead 
office, which will acknowledge 
the letter within 24 hours. 
There is also a Freephone cus- 
tomer serviceline (0800-505 050) 
which handles queries, sugges- 
tions and complaints. 

■ Royal Hank of Scotland 
Once again, the complaint 
should be addressed to the 
branch at which It originated. 
If you remain unhappy, write 
to the Head of Service Quality 
Department, Royal Bank of 
Scotland, Freepost, P.O. Box 
31. Edinburgh EH2 0DG. An 
acknowledgment will be sent 
within two working days and a 
full response within 10. 

In all cases. If you have com- 
pleted the internal com plaint s 
process and stOl feel aggrieved, 
write to the Ranking Ombuds- 
man, 70 Gray's Inn Road, Lon- 
don WC1X 8NB (tel: 071-404 
9944). 


Bupa’s long view 


B upa, the UK's largest 
private health 
insurer, is moving 
into the market for 
long-term health-related insur- 
ance. In the past, it sold insur- 
ance to cover only the direct 
cost of private medical treat- 
ment - not the impact of 01- 
health on financial circum- 
stances. 

Now, it has added three new 
types of policy: 

■ Disability income insur- 
ance, which provides a replace- 
ment income if you cannot 
work through ill-health. 

■ Critical illness cover, which 
pays a substantial lamp sum if 
you suffer one of a defined list 
of serious health problems, 
such as cancer, heart attack or 
stroke. 

■ Recovery cash, which pays a 
smaller lump sum if you need 
surgery, whether privately or 
on the NHS. 

One pertinent aspect of the 
disability income cover is that 
unlike s imilar products - usu- 
ally known as permanent 
health insurance, or PHI - 
cover does not stop at retire- 
ment age. Instead, it changes 
into a type of long-term insur- 
ance to help with the cost of 
care if you become unable to 


carry out such “activities of 
daily living” as washing: going 
to the lavatory, and eating 
unaided. 

Claims before retirement are 
decided on whether your ill- 
ness or disability stops yon 
carrying out your normal occu- 
pation. So, a condition that 
allows you to claim thm wifi 
not necessarily entitle you to 
post-retirement benefits. 

One drawback is that the 
policy must be taken out at 
least five years before your 
scheduled retirement date. 
This means that long-term care 
cover wifi not be available to 
those most likely to consider 
buying it: people on the verge 
of retirement or who have just 
retired. 


A nother potential 
problem is that the 
marimnm level Of 
cover is only 50 per 
cent of your gross salary (most 
insurers offer cover of up to 
two-thirds). Since nursing 
hfimw; are expensive — up to 
£20,000 a year - you could 
cover long-term care costs fully 
only if you were earning about 
£40,000 a year before retiring. 

The market for medical 
insurance, PHI and critical ill- 


ness cover is large and compet- 
itive, so it is worth getting 
quotes for all the different ele- 
ments from a range of insurers 
before si g nin g up for a single 
insurer’s package. 

At the same time, Bupa has 
simplified its range (rf private 
medical policies to reduce con- 
fusion over what is covered 
and make it easier for people 
to switch between different 
types of insurance when their 
circumstances change. 

Its new, customer-friendly 
approach includes a local-rate 
telephone help-line for custom- 
ers, open from 8am to 8pm on 
weekdays. Another innovation 
is a range of voluntary 
excesses on all medical poli- 
cies. This gives subscribers the 
choice of cutting premiums by 
up to 40 per cent by agreeing to 
pay the first £100 to £500 of 
every riaim. 

This will appeal to people 
who find comprehensive premi- 
ums costly and are happy to 
have minor conditions treated 
on the NHS (or pay them- 
selves) but still want cover for 
serious illness. Several other 
insurers offer voluntary 
excesses already. 


Bethaa Hutton 




BUSINESS 


LAW 

EUROPE 


The twice-monthly 


Key Areas Covered Include: 


newsletter covering 
current legal issues for 
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state-controlled sectors: control of subsidies 


Intellectual property - copyright: patents: designs: 
trade marks: licensing: technology transfers 


market access - commercial laws; Lort liability 
regimes; international trade measures, regulations 
and agreements; export controls; public procurement 
rccimes: GATT/WTO framework 


dow n-to-earth and 


corporate fan* - the impact on cross-border business of 
company law- employment law; finance, tax. property 
and insohenev law 


practical comment, 


International dispute settlement - jurisdiction; 
arbitration 


setting news in context 


European law - current cases before the European courts 
that are likely to have an impact on the future of business 


and identifying the real 
meaning of events and 
their implications for 
European business 


To receive a FREE sample copy contact: 

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financial times 


WEEKEND SEPTEMBER 17/SEPTEMBER 18 1994 


WEEKEND FT VII 


FINANCE AND THE FAMILY 


A 


A season for tempting trusts 


is here - the 
season for invest- 
ment managers to 
. dost off their mar- 
Keane plans for new trusts to 
tempt investors, writes Bethan 
gunon Fidelity is lanwhing 
Special Values, an investment 
TOt to be ran in parallel to 
Fidelity s Special Situations 
unit trust and under the 
®anager, Anthony Bolton. The 
“tea of special situations is to 
find under-valued companies 
which have recovery or 
growth potential, are potential 
takeover targets, operate in 
P»cne markets, are being 
restructured or are under-re- 
searched. 

The other new offering is 
from BZW Investment Man- 
agement and Sodete G€n£rale 
Strauss Turnbull. It is an 
unusual concept: an invest- 
ment trust specialising in com- 
panies which will benefit from 
development of the informa- 
tion infrastructure in the 
emerging economies of Asia, 
Europe and Latin America. 
This includes advertising, 
broadcasting, electronic hard- 
ware and software, newspa- 
pers and telecommunications. 


NEW INVESTMENT TRUST LAUNCHES 


(Team 


Bmfnr 


— Tirjeto — — Oubidl W kWdB PB> — 

tiaoe tMBunmmm hna Hktaw tentai 
Bto TMrt Pff Srtngi Fltt ttflV tmtt Chengs hot Omm 

fin % taf? Seta* P P C % £ % 


ObrtaM 


■ FideUty Special Values 

FKtetty [0800 414T01) 

SS Warburg UK Growth 15 30+ (Va 

New twfn far RdeM/s Specif Situations unit bust, run by Anthony Bolton 


res Yas loop 955p 71,000 095 nta n/a 0/34-9/11/94 


■ Infostructure Trust 

BZIWSoctttS G6nfrate Strauss TumbuB (0500 202021) 

Sk Gen ST Emerging Mas 15 40+ rife No No 

Uwavffifoe trust planning to invest In "information infrastructure" fri emerging markets 


loop 96p <2^00 1.25% n/a n/a 25fl(V94-4fl1/94 


1% n/a n/a end Sept for 3 rta ; 


■ Lazard D r awera 

Lazanl investors (071 614 3065) 

Grelg Uidiflrton UK General 15 50m 3% Yes nfe loop 96p £1.000 

SpeciaBstng In regional brewers, pub c ompanies and others Involved in the production or sate of drinks 

■ Prolific Income 

Prolife [0800 998855) 

James Capet UK Inc Growth 15 40+ 4%+ Ybs Yes lOOp 95. Ip 2JXH) 0.6% 2500 1.8% 22/9/94-1371004 

Slmflar Investment strategy to existing Prolific High Income unit trust, ranked 30th of 94 funds over five years 


NEW UNIT TRUST LAUNCHES 


Mover (Mefrtw* 


Target HA Sntags - Ctwgn cOsu, PB> - iMmm - Ctagei tram re P - 

YWd m Sdames Mtfcv Annua! Other innt. MW Anwar DBier 

% aw « ML 


SpecWaOc 


■ Erin beams Fund 

Saw & Prosper (0800 2821 01 J WC Et^Uy Income 625 Yes Yes 2 15 No 1,000 2 15 No 1,000 * 1WW94-3Q/W94 

The annual charge [s taken out of capital to boost income. About 55 par cent wtt be Invested in bluechips, the rest ta ftuxMntaresi stocks. 


I E Sg ra ra»pMsagB«ajiMaMMl»WlggBDjBgeajBMMciMBaBnK»Oi«Midmoiia. 


Directors’ 

transactions 

The hugest single transaction 
of the week was at Iceland, the 
frozen food-maker and retailer. 
Peter Binchcliffe, deputy 
chairman, and joint managing 
director, sold 1.5m shares 
although he still holds almost 3 
per cent of the company. 

□ The eponymous chief execu- 
tive of Michael Page Group, 
the recruitment company, is 
due to retire in 1995. Before he 
goes, he has been realising 
some of the growth the shares 
have accrued over the past few 
years. Most recently, he sold 
2m at 105P each - but he 
retains more than 1.6m. 

□ In recent weeks, there has 
been a growing amount of sell- 
ing from the big finanHal 
houses. Now, two directors of 
M&G Group- Anthony Shearer 
and Ashley Gordon, have sold 
stock at prices between I047p 
and I055p. The sales account 
for a sizeable proportion of 
their holdings. 

□ Peter Wood was responsible 
for setting up the hugely suc- 
cessful Direct Line Insurance. 
When it was taken over by 
Royal Bank of Scotland, he 
received a considerable 
amount of equity. His recent 
sale of more than 600.000 
shares leaves him with over 
2.4m. Some of the money 
raised was for his pension 
fund. 

Vivien MacDonald, 
The In side Track 


DIRECTORS’ SHARE TRANSACTIONS IN 

THEIR OWN COMPANIES (LISTED & USM) 

Company 

Sector 

Stares 

Value 

No of 
dfrectore 

SALES 





Ameraham Inti 

| lift , 

«_rtizn 

4.000 

41 

1 

Armttage Bros . 


7,000 

14 

1 

Assoc. Nursing Serv.. 

Htth 

6^00 

15 

1 

Church 

BetQ 

2,000 

13 

1 

Henderson Admin Gp 

OthF 

2J200 

21 

1 

Iceland Group _ 

RetF 

1500,000 

2415 

1 

Lowdnes Lambert 

Insu 

16,000 

36 

1 

M&G Group 

OthF 

2fL200 

276 

2 

MarshaBs 

BM&M 

40,000 

59 

1 * 

MercwyAsst Mgmt _ 

OthF 

15,000 

100 

1 

Page (Nfchael) Gp 

SSer 

2,000500 

2100 

1 

Ptasmac 

...... rotP 

25,000 

34 

1 

Rathbone Bros 

OthF 

32,000 

88 

2 

flosebys™ „ 

RetG 

14500 

21 

2 

R Bnk of Scotland 

Bnks 

620^30 

271 

1 

Scnrodera _ 

MBnk 

2584 

42 

1 

PURCHASES 





Aktours . 

LAW 

10.000 

47 

1 

Ashtead Group 

— BCon 

2500 

10 

1 

BTR __ „ 

DM 

3,000 

10 

1 

Bluebird Toys 

L&H 

15.000 

38 

1 

Brammar 

dw 

3.000 

11 

1 

Goode Durant 

Tran 

10.000 

20 

1 

Harrisons & Croe 

DM 

14.000 

26 

1 

John Mansfield 

— BM&M 

800,000 

32 

2 

Macdonald Martin SW&C 

4,000 

26 

1 

RCO — _. . 

SSer 

15.000 

26 

1 

Ransomes . .„ 

Eng 

50500 

34 

1 

Smith (J) 

Prop 

42500 

45 

2 

Takare 

Hfth 

10500 

21 

1 

UK Laid 

Prop 

1,657.445 

663 

2 

Watec 

SSer 

500,000 

115 

1 

WPP Group. 

Mdia 

1.129505 

1599 

1 

Warburg. S-G. 

MBnk 

23.000 

180 

1 

Value expressed In EOOOs. This list contains all transactions. Including the 

exercise of options (*) if 100W subsequently sold, with a value over £10.000. 

Information released by the Stock Exchange 3-7 September 1904. 

Source: Directus Ud. The Insfde Track, Edinburgh 




MGHEST RATES FOR YOUR MONEY 





Netlee/ 

Mtakiwra 

Pete 

tat. 


Account 

Telephone 

term 

deposit 

% 

peU 

DISTANT ACCESS A/c« 

Poitman BS 

(retard Access 

0202 2^444 

hWHnt 

£500 

5.00% 

Yiy 

Bradford & Brngtoy BS 

Overt Premium 

0345 248248 

Postal 

Cl ,000 

540% 

y v 

Skpton BS 

3rtgh Street 

0756 700511 

instant 

£2to0 

510% 

Y»V 

Nationwide BS 

Imeslifrart 

0800 68S511 

Postal 

CS.000 

530% 

v* 

NOTICE A/cs and BONDS 

Bradford & Bingtey 

Direct Notice 

0345 248248 

300ay(P) 

ClflOO 

500% 

Yiy 

Northern Rock BS 

Postal 60 

0500 505000 

6t»ay« 

Eiaooo 

555% 

*v 

Universal BS 

1 Yr. Mgti Option 

091 232 0973 

90 Day 

ClOtoO 

580% 

Yiy 

Covertry BS 

Foed Rale Income 

0800 126125 

31A87 

£5.000 

580%F 

Yiy 

MONTHLY INTEREST 


Capital Trust 

0538 391741 

Postrt 

£2.000 

137% 

My 

Bradford & Bln^ey BS 

Dkect Notice 

0345 248848 

30Day<P) 

cioboo 

530% 

My 

Universal BS 

1 yr. ttgh Option 

091 232 0973 

90 Day 

£1,000 

595% 

Mly 

Coventry BS 

Rxad Rate Income 

0800126125 

31.8.97 

£5b00 

&45%F 

Mfy 

TESSA* (Tax tael 



0858 463244 

5 Year 

£9.000 

7£0% 

Yiy 



0455 251234 

5 Year 

QS00A 

735% 

YJy 

Holmeedafe BS 


0737 245716 

5 Yeer 

£1 

7.15% 

Yiy 

Nottingham BS 


0602 481444 

5 Year 

£1 

7.10% 

YV 

MOH INTEREST CHEQUE A/ca 

(Qroes} 







Curent 

0800 400900 

Irwwit 

£500 

3.50% 

Yiy 


Asset Reserve 

0422 335333 

Instant 


4£0% 

Oy 


Classic PosSsi 

0B0Q T17515 

Instsrt 

£2500 

S.75% 

Yiy 





£25/300 

500% 

Y V 


OFFSHORE ACCOtWITS [Q re—) 



Hemafl Orel 

0481 715735 

Instant 

£500 

575% 

Yiy 


Gdd Plus 

0481 822747 

90 Day 

£20000 

566% 

Yiy 


0'shore Key Ex 

0481 710150 

180 Day 

£50000 

7.00% 

Yiy 

HaBf jx BS 

Feed Rate 

0534 5B840 

5 Year 

El 0.000 

560% 

Yiy 

niMkimm Meant BONDS (Nel) 



081 440 8210 

1 Year 

£10000 

550%F 

Yiy 



081 680 7172 

2 Year 

£20 toO 

510%F 

Yiy 



0444 458721 

3 Yoar 

ci too 

590%F 

Yiy 



0279 462839 

« Ytw 

£50000 

733%F 

Yiy 

Eumbte 


071 454 0105 

5 Yaw 

ciotoo 

73096F 

Yiy 


NanOML SAVUtOS A/Bs a BOWS (Crawl 


investment A/C 

1 Morah 

£20 

52S%G 

Yiy 

Income Bends 

3 Month 

£2,000 

550% H 

»y 

Capita! Bonds H 

5 Yew 

C100 

735%F 

DM 

First Option Bond 

12 Month 

£1,000 

500%R 

YV 

Pensionara SB 

5 Yeer 

£500 

7to%F 

Mfy 

MAT SAVM6S CERUFtCATFS (Tax Free) 

41st Issue 

5 Year 

£100 

540%F 

OM 

7tti Index, Linked 

6 Year 

£100 

500%F 

OM 




♦Into 


CMdrens Bond F 

5 Year 

£25 

7.35%F 

0M 


Th« Littta covers major banks and Bukfing Societies arty. AD rates [except those under heading Guaranteed income 
Bontfal are sbownTsress. F «= Fbmd Rare (AD other rates are variable) OM = Interest paid on maturity. N= Net ftWe. P= 
Feeder account also required- G- S.7S per cent on C50Q and above; 8 per cert on £25.000 and 
7S oTSSm andabova 1= M0 per cent on £20.000 and abowLSorac* MONEYFACTS, The 

tKLriTSd Mortgage RatwAaundry 0Ba ***** 

Sri an introductory copy by phoning 0692 500665. Figures compiled on: 15 September 1994 



Who said your 
business can't 
have free banking 

andeam4.0G% 

gross pa? 

Call 071 -20J 1550 during oRioe hours or 24 hour line 071-626 0879 


You can have 60 free 
transactions per month, 
and eam a high interest 
rate on a minimum 
deposit of £2001. 

A L L I ED^T R UST 

r«n»8nb*^ UrafuttHiJl liAknllT-K '41 


When nil is 
not negligible 


0&A 


BRIEFCASE 


4b ftgtf im pn mU y cm ba mxmmd by tf» 
FT mu et nim kr l» mmaj gm rt turn 
mtnia. M w* ba a mu —g ty pear os 

men m poaeOa. 


Under section 24(2) of the 
Taxation of Chargeable Gatos 
Act 1992, when an asset has 
become of negligible value, 
what is the advantage of 
claiming that the asset h as 
been sold and reacquired at 
the specified value? 

Can’t it be claimed simply 
that it has a negligible value? 
Is negligible value the same as 
“nil" value for CGT purposes? 

■ Section 24(2} of the Taxation 
of Chargeable Gains Act 1992 
says: “If, on a claim by the 
owner of an asset, the 
inspector is satisfied that the 
value of an asset has become 
negligible, he may allow the 
claim; and, thereupon, this act 
shall have effect as if the 
claimant had sold, and 
immediately reacquired, the 
asset for consideration of an 
amount equal to the value 
specified in the claim." 

As yon will see, the claimant 
has to specify his estimate of 
the asset's present value in the 

plaim. 

No. “negligible" does not 
mean "nfl": there is a contrast 
between the phrase “the 
value. ..has become 
negligible", in section 24(2}. 
and the phrase “becomes 
valueless" in section 146(2). 
Both phrases originated in the 
Finance Act 1965, so 
parliament's intention to 
distinguish between negligible 
values and zero value is 
beyond question. 

Unlocking a 
house’s value 

My wife and I own our bouse 
Since we have no children, it 
(or the proceeds thereof) will 
go to relatives when we die. 

Since most of our income 
has gone into the house, we 
are looking for a way to get Its 
value (£60,000) for ourselves, 
but without having to resort 
to any debt 

Is it possible for ns to sell 
the house to, say, a finance or 
insurance company but 
continue to live there until we 
die? Or is there any other type 
of scheme that we could opt 
for? 

■ You should approach the 
idea of selling your house to a 
finance or other company with 
extreme caution. 

There are, however, 
arrangements which may well 
be mutually profitable in your 
situation and, therefore, we 
suggest you contact Age 
Concern at Astral Home. 1268 
London Road, London SW1B 
4ER(tefc 081-679 B0Q0). 

Ask for a copy of its book, 
Using Your Home os Capital 
(price £450) and its free fact 
sheet number 12. (Answer by 
Murray Johnstone Personal 
Asset Management). 

No tax on 
this sale 

A British lady now aged 71, 
previously resident and 
domiciled to England, 
emigrated to South Africa four 
years ago. As her son lives 
there, she has no intention of 
returning to live permanently 
in tiie British Isles. 

She still owns the house 


which was her mafai residence 
and her principal private 

residence in the UK It is let, 
and she is not r»miri«T«»rinp 
selling it. 

She has been told, however. 
that if she did sell the h rinse 
now, she would be liable to 
pay capital gams tax. Is this 
advice correct? 

■ What she has been told is 
nonsense (so far as we can 
deduce the relevant facts). 

You can ease her mind by 
sending her three free 
pamphlets which are 
obtainable from local tax 
offices: CGT4 (Owner-occupied 
houses). CGT14 (Capital gains 
tar, an introduction) and IR20 
(Residents and non-residents: 
liability to tax in the UK). 

Her UK solicitor, who 
presumably has acted for her 
in buying the house, can guide 
her through the tax labyrinth. 


I P TO 


700 


0 


0 


GROSS PER ANNUM 


High gross rates with a range of notice 
periods. 

Minimum opening deposit only £5.000 - 
minimum withdrawals or additional 
deposits of only £500. 

Choice of annual interest dates - 
31st March or 30th April to help with 
your tax planning. 

To open an account, send the coupon 
with your cheque today or call the 
FREEPHONE number below for further 
information. 

YORKSHIRE GUERNSEY IS A WHOLLY 
OWNED SUBSIDIARY OF 
YORKSHIRE BUILDING SOCIETY 


OFFSHORE KEY EXTRA 
180 Days notice or charge. 


tolantr 

(UUWcrcvn 


RATES (VARIABLE) 


US. 000 lotW. 9 M 



Ootyp a 

LJLOOOio fp.W 

5 AS Cjrmvpj 

OFFSHORE KEY NINETY 

90 days notice or charge. 

BAmr 

RoUh 

liO.OCDor oirr 

6 45% Giriiip j 

C7&.OH 10 £4? 99V 

sea*. Gimipj 

l ID. OOO !o t.'J.999 

5 W* blOlld J 

_ 1 4, HO ip I9.*W 

5O0"« Gh.Ripj 

OFFSHORE KEY ACCESS 
Irotent Aueu. 



(50.000 of nn 

6 10% Grm\ p e 


US tO C lo M 9.999 
[tO . P OO fr- LTJ 999 
[i.000 to C9.999 


S W*l (lIlAiPA 

s i os Clot, p o 
a to*. GiaKsi j 


r 

L 


I enclose 
for £ 


CALL 4 JT FREE 

0800 378836 

■ OR POST THE COUPON TODAY 

Sterling Cheque or draft 


(min £5.000 for first 

deposit) made payable to 'Yorkshire 
Guernsey' afc (Your name). Please 
open the following account: Offshore 
Key Extra Q Offshore Key Ninety Q 
Offshore Key Access Q Choice of 
Interest Payment Dates: 31 March U 30 
April □. Please send me full details of 
Yorkshire Guernsey □. 


TO OPEN AN A/C SILL W COUPON. S£NO TO MMUHI M tilt FBAISf V PO BOV 
W ' 4N4£U C oun STPnenpClHT GUfRNiC*. CfWMNFl ISLANDS Gfl JSf | 

MTUMBSIMSS F.T I JJ 

PLEASE USE BLOCK CAPITALS 
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BIRMINGHAM MID SHIRES 
BUILDING SOCIETY 

HALF YEAR 
RESULTS 


GROUP INCOME AND EXPENDITURE ACCOUNT 
FOR THE SK MONTHS ENDED 30TH JUNE 1994. 

(UNAUDITED) 



To 30th June 
1994 
£m 

To 30th June 
1993 
£m 

Net interest income 

•46.0 

43.7 

Other income and charges 

1ZA 

103 

Total income 

58.3 

54.0 

Administrative expenses 

(302) 

QZ1) 

Profit before provisions and tax 

28.3 

26.8 

Loss provisions 

Cifi) 

(&2> 

Profit before taxation 

24.7 

17.9 

Taxation 

(Sa) 

(4S) 

Profit after taxation 

143 

12.0 




Birmiiigham 

Midshires 

Building Society 
H ell exceed your exjjectations 


For a full copy of the society’s Interim Financial Report, please contact: 

Corporate Commit nicaiions Department 
Birmingham Midshires Building Society 
Principal Office, 35-i9 Lichfield Street. Wolverhampton WV1 1EL. 
Telephone (0902) 710710 

EstablRhul IShv A\--l-[s l-v.lv> I in n IiiIIh -n 





VIII WEEKEND FT 




FINANCIAL TIMES 


WEEKEND SEPTEMBER 17/SEPTEMBER >81994 


PERSPECTIVES 


As They Say in Europe 

A French youth, 
free of innocence 


S uppose Edward Heath, 
the British prime min- 
ister from 1970 to 1974, 
had been mixed up 
with Oswald Moseley’s fascist 
movement in the 1930s and 
had helped draw up a list of 
undesirables to help an even- 
tual occupying power. 

Even in secretive Britain ft 
might have emerged that he 
was not, perhaps, a wholly 
suitable potential leader. At 
the very least the cabinet sec- 
retary would have been tipped 
off by the head of MB: “Ted 
hasn't got 20 shillings for the 
pound,” or some such argot 
would have scuppered trim. 

In France, thing * are differ- 
ent A bit of fascist collusion 
for a man of Francois Mitter- 
rand's generation was not 
exceptional. Then a bit of light 
work on the other ride and one 
could emerge from the cocoon 
of collaboration as a butterfly 
of the resistance. But Mitter- 
rand, at a time of his own 
choosing, has co-operated in 
revealing the truth about his 
past. Admittedly the French 
president did wait on til the 
last days of his presidency and 
maybe his life, to come dean, 
bat come dean he did in back- 
ing the now well-known book 
by Pierre Pdan, One jamesse 
frangcdse. 

That, and the serious wor- 
ries about his health, led to a 
long television interview on 
Monday. There, Mitterrand 
argued that he had not done 
much that was wrong. He had 
been a bit late in changing 
sides. He had befriended the 
man who had been the Nazis' 
manag er of the Holocaust in 
France, Rend Bousquet. Bat 
Bouquet had been publidy 
cleared, even though his asso- 
ciates had left nobody in any 
doubt as to his central role in 
the matter. 

The newspapers reacted 
diversely. Liberation said that 
anyone looking for a mea 
cutpa when it came to Boos- 
quet might well have spared 
themselves the trouble. One 
provincial paper thought the 
president could end his term 
with a dear conscience. 


There was alarm about the 
role of the press in France, but 

even that took different forms. 
Le Figaro said the press bad 
turned on Mitterrand as it had 
turned on other presidents at 
the end of their reign: “That is 
the way it goes in the world of 
French media, strong with the 
weak and weak with the 
strong.” 

But, as Is usual with Le Fig- 
aro, the reality is different. 
Most facts about Mitterrand, it 
seems, were, by and large, in 
or near the public domain. It 
would not have taken much to 
show he was on the fringes of 
the nastier xenophobic groups 
in the 1930s and that he dined 
with Bousquet in the 1930s. 


‘A bit of fascist 
collusion for 
a man of 
Mitterrand's 


generation was 
not exceptional ‘ 


After all, he deposited a 
wreath on the tomb of the 
Vichy leader, Marshall Potato, 
annually until public opinion 
forced a change a few years 
ago. 

So the question is, why was 
it that the truth did not come 
out until Mitterrand licensed 
It? Only Le Monde has ta k e n 
this qnestion to heart Its 
in-honse ombudsman, Andrf 
Laurens, wr o te a 5,000 word 
piece headed: “Francois Mit- 
terrand under the eye of Le 
Monde,” He explained how the 
paper had played a vital role 
to exposing the many scandals 
of his reign and got into trou- 
ble as a result "The irony is 
that the paper is reproached 
on the care hand for not having 
told what it did not and could 
not know, and on the other for 
not having believed the state- 
ments of public figures.” 

Those who expose unpleas- 
ant secrets In France do get 
into trouble. But the problem 
of Mitterrand runs deeper 


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than that Tbe French cannot 
resolve it. They like to think 
Charles de Gaulle wax the 
presidential incarnation of 
France, but of course the truth 
Is that Mitterrand is the mir- 
ror of the nation. He Is the two 
Frances, the nation of the 
enlightenment, the revolution 
and liberty. And of xenopho- 
bia, anti-republicanism and 
intolerance. 

Mitterrand symbolises the 
contradictory aspects of 
France’s recent past - the 
ideological opportunism and 
the unique nature of French 
collaboration with the Nazis, 
the myths of the resistance, 
the creation of a successful 
modem state and tbe continu- 
ity of pointless minorities on 
the tor left and tor right 

The National Front leapt to 
his defence. Its weekly, 
NatUmol-Eibdo, ran the head- 
line, "Ndtiring to get excited 
about” and reported that any- 
body who bad read the far- 
right press would have been 
familiar with all Mitterrand's 
transactions with the Vichy 
regime and he had done noth- 
ing wrong anyway. 

The curious fact Is that 
France’s great figures, unlike 
Mitterrand, always emerge 
from some glorious national 
salon des rfjus&L They are ont- 

sidets - Henri IV mid Napo- 
leon for example, or rejects 
and rebels - Voltaire, Lavo- 
isier, Victor Hugo and de 
Gaulle. i 

In Britain, by contrast, all , 

national heroes " Elizabeth I, 
Shakespeare, Adam Smith — 
were heroes to their contempo- 
raries. Sometimes that is a 
fluke of history. No British 
leader could have faced, the 
choices that confronted setter 
rand; none could have sup- 
plied ap pr opriat e ly damaging 
material for a sensational 
political biography called “A 
Youth of an En glishman ”. So 
no Englishman can master the 
arcane intdlectual skills that 
come so easily to the French. 
Hie has no need of than. 

■ James Morgan is economics 
correspondent of the BBC World 
Service. 



Reach tor the sky: Dadd Pariror, owner of Headcom Parachute dub with parachuHote CfHftr Mddkt and Thornes Shaphmd 


Minding Your Own Business; 


Flying solo in turbulent air 

Simon Walsh meets a City escapee whose. dream has taken some nightmarish twists 


*7 can remember arriving back 
at work on Monday morning 
after a weekend's parachuting, 
going back to jump that earn- 
ing, jumping again on die Tues- 
day morning and still being 
back behind my desk by 9am * 


E rstwhile foreign 
exchange dealer 
David Parker recalls 
how in 2975 he found 
that Ufa on the Square MHe 
was good, but not good 
enough. 

*1 was getting by in thefts 


e t g n exchange market and ! 
was enjoying it, but I didn't 
feel I was going a ny where , and 
I didn't fancy spending the rest 
of my Ufa as a passed over for- 
eign exchange dealer rattling 
into Bank tube station five 
days a week. 

“The obvious solution was to 
set trp in sport parachuting; 'At ‘ 
that tima most clubs Were 
informal groups getting 1 ' 
together and pooling re- 
sources. 

“I thftnght there would be 
rotiu* for a $even-day-a-week 


spenrt 'parachuting -'centre. 


loads of students jumping from 
2,000ft, as they would be pay- 
ing more manor far less time 
in tbe aircraft. 

The mainstay of our reve- 
nue has always been the stu- 
dent jumps aid it still is. How- 
ever we do not now make the 
losses that we- used to make, 
even an a percentage basis - 
because we have bigger air - 
craft, have became more effi- 
cient, and prices have caught 
up somewhat 

The cost of running our 
Britain- Islander. Aircraft Is 
£250- per hour, at break evm.- 


fees; But tire' income 1 do get is 
income.Idmi’t have towork for 
at alt, and there's not a lot of 
capital tied up inttltft Just set 
up, and more- or v less runs 
ftsettH. 

Ba April , of 1986 David 
invested in a turbo prbj> [air- 
craft, expensive ip buy. but 
cheaper to run, and with a 
much longer working fife. 


wcafan&’as folly comtoefcial Wb timrge'Slra 'head Tor an 


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operation. 

“I wrote to 98 such groups 
asking if they Him! the idee of 
going ML time on a commer- 
cial -basis.* 1 

Among the groups to 
respond was one based on 
Headcom Aerodrome in Sent 
| He hked the location: Troba- 
i bly one of the most densely 
populated areas in the UK, 
witin Greater London and the 
South East for a catchment 
area; and at that time there 
was little competition." 

The Headcom Parachute 
Chib began trading in 1979 on 
capital of £5,000. There was no 
shortage of weekend adventur- 
ers willing to hand over good 
money to let go of a Cessna 206 
at 2,000ft 

The problem was how to 
make a profit from the cost- 
intensive business of flying an 
aircraft, and hiring a space at 
the airfield while keeping 
prices within reach of the mar- 
ket 

“It’s an equation which is 
really quite difficult to 
unraveL We would lose quite 
significantly on experienced 
jumpers going to altitude - 
10,000ft or over, while we 
would make money on the 


altitude lift of- nine people- so 
that generates an income of 
£136. We can do two of those to 
an hour. 

“If we put seven students in, . 
each paring £20 we have an 
income of £175 and it only 
takes 15 minutes, so you have 
a potential to earn £700 per 
hour, which is a good 
profit - 

“However, if you have wmds 
under lQmph, you will be tak- 
ing up students. Over lQmph 
and you can take only experi- 
enced jumpers. 

“You cannot run an exclu- 
sively student-oriented opera- 
tion because you would never 
have enough instructors, and if 
you did you would never prog- 
ress into -a toDy-fiedged para- 
chute centre." 

David formed two further 
companies. Slipstream Adven- 
tures to provide “Accelerated 
FreefaH”, an advanced form of 
training that allows beginners 
to experience freefaR on their 
first jump, and the Kit Store to 
market parachutes and related 
equipment 

The Kit Store; says David, 
has a steady turnover of 
£120,000 a year. “Most of the 
profit goes in management 


I n March of 1989 the air- 
craft was taxying when, a 
parachutist, to the final 
stages of descent, cqPidiBd 
with brie of fberpropeUI^ aid 
was Isfliea, The parachutist 
was Tania iPond, David’s fian- 
c6e. 

“It was the most devastating 
experience of my Ufe. It took 
me a long time before 1 could 
come back hue and fOlffl any 
useful role. I would just come 
in, sign the checks and go 
away again. 

T certainty started drinking 
a lot. But lam not aware of It 
having left any long term 
scars. .- 

“Of course it's always there 
and always win be there, but 
time is a greet healer, Ufa must 
go an, and you cannot go an in 
grief for the rest of your Ufe.” 

He lost tbe aircraft, and 
what was to follow would lend 
precious little comfort 
“I borrowed £198,000 from a 
finance company in 1988 to 
purchase the Turbine 
Islander. 

“When we had the accident 
it left ns with a repair hill in 
excess of £100,000. which we 
took out of cashflow. Then the 
Aircra ft hull insurers refused 
to pay up, as did tbe parachut- 
ist's third party insurers. 

~ 7 “Tha net result of that was 
having put £100,000 into repair- 
ing the. aircraft, I could no lon- 
ger afford to maintain It 


“1 asked the finance com- 
pany to .repossess the aircraft. 
They repossessed it, but have 
done nothing with it, it’s just 
been left sitting here. 

“They're now saying they’ve 
knit reds money and want it 
back with interest Fm saying 
thfr aircraft was worth at least 
£200,000 when they repossessed 
it, but is now a rusting- hulk, 
and -that they should haVe sokl 
it whffi^they took possession, 
used it constr u c ti vely, .•or at 
least looked after it 
property. 

■Tip tar now we were -just 
writing letters tb each ; other, 
but 1 found out recently that 
now they are going to sue my 
companies ^ me personally. 
We will obviously fight ft with 
everything we*vB got" 

‘ Last year, figures fat two of 
the three companies dipped. 
Headcom Parachute Chib lost 
£31,000 on turnover of £286,000 
against a 1992 profit of £65,000 
an turnover of £337,000 in 1992. 
Slipstream made just £800 an 
turnover of £59,000, down from 
£15,000' profit on £88,000 
turnover the year before. 
Parker expects Headcom to 
move back into profit this 
year. Hie says he rdtoses to be 
beaten. 

' “Running a full-time para- 
chute centre is not so much a 
business venture, more a voca- 
tion requiring business acu- 
men. You are working without 
respite, no break whatsoever. 
What brings you through is 
yonr love of the sport 

“Yes, we are riding some 
extremely rough waters right 
now, but no, we are not oh the 
rocks." 


■ Headcom Parachute jChtb, 
Headcom Airfield, Headcom, 
Kent TN27 9RX. TeU 


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audiences. Another of his 
sVfflw, ap parently, is an ability 

to make snap decisions - 
acquired as a doctor. 

“The communists* -greatest 
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country, the only one in 
Europe.” The remedy is the 
free market, foreign invest- 
meat, pr i v ati s ati on and a stock 
exchange. All this Is to be done 
as quickly as possible, says the 
president, who has dispatched 
teams to the UK to study its 
privatisation experience. 

“When we tried to privatise 
the bread Industry; people said: 
how can you do that? But, in 
the old days, we had bread 
only three.or five days a week. 
We had to import wheat and 
transport ft around the . coun- 
try to meet shortages. Today, 
our warehouses are full" He 
relays with pride the results of 
a Europe-wide Gallup poll 
which showed that 72 per cent 



Synrixri of repre ss ion: a p ffi-bam on flu hndi av * 


of Albanians approved of priva- 
tisation, the highest in any 
country. 

Berisha is. particularly keen 
to dispel the image of Albania 
as a land hostile to outsiders 
(it was a crime under co mmu - 
nism to speak to foreigners or 
accept foreign finance)! *“nie ' 
attitude of Albanians has com- 
pletely changed,” be explains. 
“They understand the impor- 
tance of foreign investment” - 
There is hugrscopefor outside 
investment: apart from oil, 
Albania b* 8 copper, rthrammm 


and considerable tourism 
potential. 

The president is delighted 
that foreign capital has begun 
to trickle in, even though 
Albania lives under “the 
shadow of war” to Bosnia and 
has difficult relations with all 
its Immediate neighbours. The 
recent imprisonment of five 
members of the Greek minority 
an espi o nage charges has put a 
severe strain on ties with 
Athens, ami reinforced the 
argument that less has 
changed in. Albania than the 


government would have people 
believe. The .Greeks have 
blocked a proposed aid -pro- 
gramme from the European 
Community. Berisha ahrng a: 
“We are realistic. We will have 
to waft” 

Back at the airport, there is 
evidence for his op timism Two 
- fligh ts, Alitalia and Austrian 
Airlines, have laiiflaH and- are 
disgorging dozens .of people 
with suits and briefcases. 
There are now daily flights to 
. several European cities, arid 

most are full 

On the flight back to Ldo- 
dotvl am sitting' beside. Pa vii 
Qesku, the Albanian ambassa- 
dor to the UK. A lightly-built 
man with lively, dark eyes «vid 
a shock of silver hair, he tells 
me about his own past A text 
cographer, he has just com- 
pleted the first com pre he nsi ve 
Albanian-'En gtish dictionary. 

I ask him what i-harart»ri<yrt 

Albania and its people, with 
their unique Illyrian origins, 
“The Albanian language sur- 
vived 500 years of Roman orea- 
pation, and then 500 years 
unde r the Turks and tbe cost-. 
.stant threat of Slav -isvteBflu, 11 . 
he replies. 

. “But the tost book -was not . 
published until 1555, and the; 
first Albanian fau gjmge school 
did- not open, until 1879.' The 
survival gene is very strong." I 
had to agree.'. 


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FINANCIAL times WEEKEND SEPTEMBER 17/SEPTEMBER 18 1994 


WEEKEND FT IN 


PERSPECTIVES 


Escape from the 
Himalayas: a 
family’s ordeal 

Stefan Wagstyl advises travellers to India to be prepared 
jor surprises after his adventures in the mountains 


T he soldier poked around 
in the boot and asfc«»d - 
"Have you got any 
bombs or guns?" “No," 
replied our driver. 
"Well, be on your way," said the 
guard, slinging an ancient Lee 
Enfield rifle on his shoulder and 
wrapping his cloak around him to 
keep out the icy early morning 
wind. 

The Drass Valley, in the Himala- 
yas in the north Indian state of 
J aiiiit iu and Kashmir, is the second 
coldest inhabited place on earth 
after Siberia. The towering moun- 
tains keep out the sun so effectively 
that even In summer in the narrow' 
est parts of the valley, the snow and 
ice never thaw. 

The valley is also full of soldiers, 
being less than three miles in places 
from the disputed border with 
Pakistan. 

I had never had the slightest 
i n tent i on of visiting this remote and 
hostile territory, particularly not 
with my wife and three small chil- 
dren- But travellers in India have to 
allow for even the most unlikely 
surprises. 

Our adventures began with a five- 
day holiday in the mountain king- 
dom of Tjdairh 1 lying just inside 
India's border with China, Most of 
ijdnkh lies north of the Himalayas; 
the mountains block the rains and 
snows so Ladakh gets as little water 
as the Sahara. But there is a wild 
beauty about its rocky landscapes 
and about the bright green oases 
which flourish around st reams and 
rivers, including the Indus, which 
flows through the heart of the 
region. At 11.000ft and more, the 
thin air is so clear that everything 
seems closer than it really is. mak- 
ing the landscapes unbelievably 
vivid. 

The first Ladakhis were Tibetan 
nomads who brought with them 
Tibetan Buddhism and a language 
which is closer to Tibetan than to 
any Indian tongue. Their white- 
painted monasteries . cling to the. 
mountains and their stupas and 
prayer stones dot the valleys like 
the relics of some prehistoric civil- 
isation. Even though Leh, the 


Lada khi capital, has been turned 
into a military base by Indian 
troops guarding the disputed fron- 
tiers with Pakistan and China, 
Ladakhi people have managed to 
preserve their gentle and spiritual 
culture. 

But, despite its other-worldliness, 
ijt^abh is r emarkab ly accessible - 
being only a one-hour fli ght from. 
Delhi So, a trip to Ladakh is a good 
way to spend a long weekend - but 
only if the weather Is kind. For us, 
it was not. 

The sun shone from a cloudless 
sky for the first four days, ideal 
conditions for aircraft at Leh air- 
port. But on our last day the clouds 
came down and showed no sign of 
lifting. Even, though the air force 
keeps the airport running all year 
round, there is nothing it can do 


‘The manager said 
the aircraft could 
come the next day 
or the next week 1 


about the cloud. After waiting for 
three hours, we heard the flight was 
cancelled. The airport manager said 
the aircraft could come the next day 
or the next week. “You are lucky. In 
winter we are sometimes dosed for 
a month," he added helpfully. 

Our hearts sank. The idea of an 
indefinite wait did not appeal par- 
ticularly as this was the be ginning 
of September and the temperatures 
were already dropping fast from 
their brief s umme r highs. The chil- 
dren had already seen as many yaks 
as they wanted and moaned at the 
thought of more days in the terres- 
trial equivalent of outer space. 

The only alternative to flying was 
the road. A two-day trip - either 
west to Srinagar, the capital of 
Kashmir, or south to Kulu, a hill 
station on the southern side of the 
mountains. Srinagar, with its politi: 
cal troubles did not appeal in the 
slightest But the airport at Kulu is 
also frequently closed by bad 
weather. So, anxiouslywe opted for 


Srinagar. 

We stocked up with apples and 
chocolate and with bread and cakes 
from Leh's German Bakery, which 
is capable of turning out wonderful 
apple cheesecake in the most 
unlikely surroundings. 

A car was found - one of India's 
venerable fleet of Ambassadors, the 
Morris Oxford lookalikes. Regrin, 
the driver, promised he did not 
drink and had never had an acci- 
dent. With considerable trepidation, 
we set off. 

The road started by winding 
across the long valley of central 
Ladakh. The clouds grew thicker 
and the winds blew grit and sand in 
all directions. We saw bedraggled- 
looking sheep and goats, and. at one 
point a couple of foreign trekkers, 
huddled together under a sign pro- 
claiming the virtues of Htmannk, 
the corps of army engineers who 
built the road. 

The plateau ended abruptly and 
the road snaked down to the Indus, 
through the first of many sets of 
hairpins we would see. No crash 
barriers, here or anywhere else. We 
winced at the sight of a truck lying 
upside down on the rocks below. 

The road is open for only six 
months of the year. It is closed in 
winter and spring when the waters 
released by the thaw wash away 
chunks of asphalt We saw gangs of 
workmen repairing the roads, dig- 
ging holes and breaking rocks, then- 
faces blackened with the tar they 
heat on open fires. 

They were not Ladakhis or Kash- 
miris. but migrant labourers from 
the plains of Khar, India's poorest 
state. About 1,000 miles from home, 
they seemed more out-of-place than 
we did. 

The Ladakhi villages we passed 
looked surprisingly prosperous. 
With their yaks, sheep and goats, 
their fields of barley and orchards 
of apples and apricots, they seemed 
to have learned to live well in the 
harsh terrain. 

By the afternoon of the first day, 
we reached the Fortula Pass, at 
13^00ft, the highest point between 
Leh anil Srinagar. TTie mountains 
here fold into even stranger and 



wilder formations than around Leh. 

There are walls of brown and yel- 
low like those of the Grand Canyon, 
Dolomite-like spires of grey and 
black, and purple craters which 
might belong better on another 
planet “The moonscape viewing 
point," said a sign, pointing out the 
obvious. 

Below the pass, the landscape 
gradually became greener and the 
villages larger. Among them was 
Mnlhekh, site of a 2,000-year-old 
statue of Buddha carved out of a 
single rocky outcrop standing by 
the road. We stopped to stare at its 
enormous bulk. The priest stared 
back at our children, perhaps the 
first white children he had seen. 

Exhausted, we reached Kar g il , the 
only town between Leh and Srina- 
gar and our halt for the night The 
Caravan Serai Hotel was about to 
close for the season. But the owner. 
Mr Iqbal prepared two bedrooms 
and a supper of lentils, rice, boiled 
potatoes and cauliflower. 

He apologised for the service, 
explaining that tilings had been bet- 
ter “before the militancy". It was 
the first reference we had heard to 
the insurgency which has left at 


least 10,000 dead in Kashmir 
since it broke out in earnest in 
1988. 

The following day, evidence of the 
fighting multiplied as we crawled 
closer to Srinagar. Leaving Kargil 
the last outpost of Buddhism, we 
drove into the heartland of the trou- 
bled Moslem region of Kashmir. The 


‘ Evidence of the 
fighting grew the 
closer we crawled 
to Srinagar 


landscape was as spectacular as the 
day before, but less barren, with 
grass and trees on the lower slopes 
of the Drass Valley and the Zojila 
Pass, the only gateway between the 
heart of Kashmir and Ladakh. 

Our impressions were dominated 
by the presence of the army, which 
controls the route. Soldiers with 
machine guns man outposts along 
the single track road. The traffic is 
one-way - in the morning and early 
afternoon traffic it moves from Kar- 


gil to Srinagar then the other way 
around. 

An army convoy heads the queue 
in each direction, spewing diesel 
fumes and stopping frequently to 
make sure that even the oldest 
vehicles do not get left behind. 
Then come taxis, buses and lorries. 
We drove just behind the army, 
staring for much of the way at the 
machine guns of three soldiers sit- 
ting in the last jeep. The soldiers 
became nervous as they reached 
closer to the top at the pass, scene 
of one of the few pitched battles of 
the insurgency. 

But even here, nature demanded 
as much respect as the militants. 
The army trucks stopped one by 
one for the drivers to worship at a 
small Hindu shrine, a memorial to 
dead sappers. Since the road at this 
point clung to the face of a 3,000ft 
cliff, it was. I felt an appropriate 
time for prayer. Even the children 
were quiet for a while, awed by 
enormous slabs of rock, guarding 
this, the entrance to the Himalayas. 

Below the Zojila the road was 
easy, winding down a gentle valley 
to Srinagar. But the army became 
more and more intrusive. In 50 


miles, we were stopped six times at 
sand-bagged checkpoints. 

As foreigners we were treated rea- 
sonably well, unlike the Kashmiris, 
who hate the soldiers as much as 
the soldiers seem to hate them. We 
saw about 20 men standing in line 
along the road, while soldiers 
searched their bus, throwing the 
luggage out into a roadside ditch. 

In the late afternoon we finally 
reached the lovely green lakes of 
Srinagar and the comfortable 
houseboats of Mr Ghulam Butt 

After the rigours of our journey, 1 
immediately knew what a Mughal 
poet meant when he said of Srina- 
gar: “If there is paradise on earth, it 
is here, it is here, it is here.” The 
houseboats were moored by flower- 
filled gardens. Kingfishers perched 
on the decks. Ramzan, the bearer, 
brought tea and home-made scones. 

But even here, the effects of the 
fighting were visible - in the empty 
pages of Mr Butt’s visitors' book 
and in the rotting timbers of the 
boats he could no longer afford to 
maintain- The boatman mournfully 
looked at our children and said: 
“Yours are the first white children I 
have seen in five years.” 


A 




Articulated truck 
v articulate Arthur 


Kieran Cooke returns to old Dublin haunts and 
has a close encounter with a master raconteur 


Truth of the Matter/Nigel Spivey 

Golden serials for tea 


T he Japanese have a 
quaint habit of pro- 
claiming various ven- 
erable personages liv- 
ing treasures - to be cared far 
and looked after much in the 
same way as the British Ust 
their buildings or the 
Americans preserve their red- 
woods. 

If Ireland were to adopt the 
Japanese system - instead of 
waiting until anyone is well 
and truly dead before proclaim- 
ing him or her "a great charac- 
ter and a credit to the nation" 
- my friend Arthur McCoy 
would be a prime candidate. 

Nothing like settling back in 
the warm seat of a Dublin bar 
after a long absence from the 
country and listening to 
Arthur ("The Real”) wind him- 
self up to tell a story. 

Arthur is to the meat trade 
what Coco Chanel was to fash- 
ion or Henry Ford to the motor 
car. Arthur knows every meat 
mar t and abattoir in Europe. 
He knows the trade's every 
wrinkle. Arthur was once hired 
ns a meat detective, tracking 
down container loads of beef 
that had gone missing under 
mysterious circumstances. 

“Once 1 saw a wagon going 
the wrong way on the Auto- 
bahn in Germany. Instead of 
heading for Syria it was going 
to Finland. When 1 finally 
caught up with it there was 
one mmp steak left in jt. 
Driver had met up with a girl 
in Hamburg and done a run- 
ner. 

“I had to go down to his 
mother's house in Kerry 
looking for him. She starts cry- 
ing saying she didn't for the 
life of her know what had hap- 
pened to her Shane. I says to 
her that while I sympathised 
with her I didn't know what 
had happened to my container 
load of meat either." 

As ever)’ raconteur knows, it 
is not just the story, it's the 
wav of telling it Arthur had a 
serious car accident recently. 

He stands to tell the tale, a 
large vodka and red lemonade 
in one hand, a cigarette in the 
other - waved round like a 
conductor's baton at moments 
of particular emphasis. 

“Wait till I tell you now." he 
says in that Dublin growl simi- 
lar to sandpaper being scraped 
across the bottom of a bird 
cage. 

Your knee is tapped to 
ensure full attention. Arthur 
clenre his throat and casts a 
masterly eye over his audience 
In an effort to achieve some 
degree of quiet. 

"The first thing l admit was 
that l was stupid. There 1 was 
happily belting along the 


motorway in Northern Ireland, 
not a care in the world. Next 
H>ing I know the car is entered 
for the 3.30 at Cheltenham and 
is leaping up over the barrier, 
doing a somersault 

“Out through the front win- 
dow I go and Tm sliding along 
the other side of the road. Now 
while all this is going on Fm 
Himlring that I'm going to ruin 
my suit Funny what comes to 
mind at such times." 

A gulp of the drink followed 
by a deep puff of cigarette - 
removed from the lips with all 
the flourish of Pavarotti using 
his handkerchief. 

“An articulated truck is com- 
ing the other way. 1 can hear 
the tsuk, tsuk of the brakes." 
(Arthur is bent down, imita- 
ting a container truck. He is 
pulling on handles and press- 
ing brakes. The vodka red 
tosses about in the glass but 
not a drop is spilled.) 

“I see the smoke coming 


from the tyres and the radiator 
with the word Volvo getting 
bigger all the time... next thing 
I know Fm in an ambulance 
with an Ulsterman asking am I 
all right For a second there I 
wondered which place I was in. 
I introduce myself and say that 
I never felt better.” 

“Anyway," {another tap on 
the knee just in case your 
attention is not entirely on the 
matter at hand) “they have me 
up in court Now 1 was cute 
about it.” (A knowing wink 
and slight inclination of the 
head here.) 

“I used my full name - 
Arthur Lesley McCoy. You see 
the Lesley is very important in 
Northern Ireland. It shows 
them I have a foot in both 
camps so to speak. They can’t 
really decide whether Fm one 
of them or one of us." (Coughs, 
choking laughter. Drinks all 
round.) 

"Come here while I teD'you. 


The magistrate asks what I 
have to say for myself" 

“Well your worship, sir, 
nothing." 

“Nothing Mr McCoy?" says 
he, raising a quizzical eye over 
his half 

"Well, your lordship, I’m 
guilty. You have me fair and 
square. Carelessness. Foolish- 
ness. I was going too fast Day- 
dreaming. Lost control and 
over she went I’m very sorry. 

“The magistrate takes off his 
glasses and rubs his eyes." 

Arthur, talcing a gulp of his 
drink, does the same, massag- 
ing his palm round a couple of 
bloodshot sockets. 

"Mr McCoy," says your man. 
“By all accounts you had a 
very dose shave noth death. 

“I would describe it as more 
like a photo finish your hon- 
our," says L 

“With that the whole place 
was laughing. A £100 fine and I 
was out" 


S unday afternoon is 
when it strikes. Yon 
have unloaded the 
shopping. You have 
grappled with all 12 sections 
of the newspaper, and won. 
The dishwasher chuckles com- 
fortingly. The dogs are in their 
baskets and the kids glued to 
their computer terminals. But 
then there is the terrible feel- 
ing of something missing In 
the day. 

Where is the classic serial? 
Like a shot of guilt, or irre- 
deemable nostalgia, you regis- 
ter this absence. Once it was 
always there, as regular as 
vespers. It might be Louis 
Stevenson, it might be E. Nes- 
bit or, best of all, a triple- 
decker Dickens with Arthur 
Lowe (of Dad's Army fame) 
playing Mr Micawber. 

For about an hour, every- 
thing was right with the world 
with a giant pot of tea, pyra- 
mids of buttered toast and the 
television (for once) serving as 
a genuine focus - a place 
where families might huddle 
and coalesce: a flickering, 
gladdening, substitute hearth. 

It was, of course, Lord 
Reith’s BBC, or the vestiges of 
it; and everyone knows that 
Keith, on record as regarding 
television as “a social menace 
of the first degree", brought 
the fall weight of Scottish 
Presbyterianism to Sunday 
broadcasting. Until 1957, in 
fact, Reith created a break in 
transmission early in the even- 
ing In order not to distract 
church-goers. 

Before the break, there 
would be a play for children, 
perhaps a Shakespeare adapta- 
tion; afterwards, something 
contemporary (say, J.B. Pries- 
tley) or “classic" (Chekhov, 
Shaw, O'Casey and many oth- 
ers): the range was formidable. 

That tills aspect of Keith’s 
Sabbath has disappeared will 
be defended aggressively by 
the present BBC and its direc- 
tor-general, John But. Bade at 
the birth of television (it will 
argue), we were accused of 
depriving children of the 
delights of reading novels by 
themselves. Now, you beg ns 
to adapt those novels for the 
screen and at the same time 
(to preserve your weekend 
lie-in), to wean those children 
on the same bland pabulum of 
morning cartoons as the com- 
mercial stations. 


On those grounds, the disin- 
clination of BVrt’s BBC to fol- 
low Keith’s pattern of edifying 
Sundays is just about pardon- 
able. What is less comprehen- 
sible are the complaints voiced 
at the Edinburgh television 
festival recently by Greg Dyke, 
erstwhile head of London 
Weekend Television. 

His concerns are twofold: 
first, that “in commercial 
broadcasting, the delicate bal- 
ance of being both a business 
and a broadcaster is in danger 
of being too dominated by 
business”; and, second, that 
“the relationship between gov- 
ernment and broadcasters is 
becoming a dependent one.” 

The logic of this double 
grudge is odd. Be wants the 
BBC’s transmission system to 
be privatised (“to take it out of 


the political arena"); and he 
wants it “to be told that it is 
not the role of the BBC to get 
involved in the commercial 
marketplace". Otherwise, he 
claims, the raison d’etre of the 
licence fee is gone. 

For a patent example of tele- 
vision’s vulnerability to state 
paternalism, one has only to 
look across at Silvio Berlus- 
coni’s Italy where the viewing 
public has, effectively, become 
one politician's audience. 

The politics of the licence 
fee, however, are secondary to 
wbat one might call its ethics, 
or even Us aesthetics. Tested 
interests always will intimi- 
date the production of probing 
documentaries: bat what has 
happened to that old article of 
faith in the BBC: that televi- 
sion is Britain’s only truly 


“national theatre"? 

Lamenting the loss of the 
classic Sunday serial might 
seem about as fogeyistic as 
bemoaning the lack of wood- 
cuts in the Radio Times, and 
equally futile. And deploring 
Birt’s commercialism is too 
commonplace to repeat here. 

Yet, it remains frustrating 
to know that the BBC has, via 
the licence fee, the capacity 
(witness Middlemarch) and the 
power to create television that 
is not only culturally magnetic 
but also gets an entire family 
gathered around it A measure 
of paternalistic intervention is 
absolutely what we need. 

To pray for the blessing or 
the good Lord Reith on our 
Sundays might be in vain - 
but I, for one, shall do so 
devoutly. 


F 


FT 


I FT GUIDE 

| EATING OUT 
| IN LONDON 

1 ii 

| published Saturday September 10 

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X WEEKEND FT 



FINANCIAL TIMES WEEKEND SEPTEMBER 17/SEPTEMBE^^W 


TRAVEL 


A moss bed 
under a blue 
night sky 

Nicholas Woodsworth enjoys the 
simple beauty of Finland 


F our or five hour's drive 
out of Helsinki, in one 
of those modem Finn- 
ish towns that pop out 
of the endless forest 
with no warning, I stopped and 
bought a few cassettes for the car. 

Back on the road, I turned up the 
volume and let Sibelius’s dark, 
brooding spirit crash and swell and 
roll out of the windows into the 
wilderness. When travelling in Nor- 
dic countries, one should always be 
well stocked with melancholia. 

The odd thing on this trip, 
though, was that through all the 
great outdoors there was no corre- 
sponding echo to the composer's cry 
of angst. I had taken other trips 
when the whole Nordic world - 
dull, leaden, gloomy - had seemed 
to me to want nothing more than to 
slit its collective wrist But this was 
a perfect early summer’s day, as 
light, carefree and guiltless as the 
breeze dancing through the pines. 

Savo, the vast Finnish lakeland 
that stretches along the Russian 
border, sparkled in the sunshine. So 
complete is the meeting of earth 
and water here that I was happily 
confused, not knowing whether I 
was driving through forest sprin- 
kled with 1.000 lakes or across an 
inland sea sown with 1,000 islands. 

It was a perfect time of year, too 
late for spring snowstorms, too 
early for mosquitoes or tourists. 
Along the roadside, stands of silver 
birch fluttered in tender green leaf. 
New rye sprouted in fields where, 
here and there, the thick walls of 
the forest had been hacked back. 
Wooden barns, freshly painted, 
glinted bright, brazen red. The 
world seemed young and hopefuL 
Most extraordinary of all. con- 
trary to everything we have ever 
learned about the fleeting nature of 
sunny summer days, this was a 
sunny summer day that was not 
going to end, at least not for many 
weeks. Savo lies just below the Arc- 
tic Circle. 

In high summer locals forget the 


soul-chilling winter that devours 
months whole and stuffs them into 
Us long black maw - around the 
mid-summer solstice; when the sun 
barely dips below the horizon, the 
darkness of night is unknown. For 
gloomy Finns, shut up in obscurity 
for most of the year, this is a short, 
zany time, a period of incandescent 
exuberance. 

Following small roads that wound 
about between lakeshore and forest, 
1 drove to Savonlinna, a town built 
on a little chain of islands set in a 
channel between two great lakes. 
Haapavesi and Pihlajavesi - as 
Finnish na^wj go, they are among 
the more pronounceable. 

In the 1920s, Savonlinna was a 
busy centre for the steamship com- 
panies that provided transportation 
- when the water was not frozen 
solid - through the lakeland area. 
Today, small lake freighters, barges 
and passenger boats still chug 
through the narrows past the town. 

But the big lure of the place now 
is an event shorter even than sum- 
mer itself - in July, Savonlinna is 
transformed from a sleepy little 
northern town into a tourist attrac- 
tion as, night after sunny night for 
a month, Olaviniinna Castle plays 
host to one of the world’s northern- 
most opera festivals. 

Who. for heaven's sake, would 
build a medieval castle lost in the 
forests of the for north, I wondered? 
But Olaviniinna, an island-fortress 
of brick towers and stone walls ris- 
ing from the waters of the channel 
is as substantial and imposing as 
any castle in Britain or Spain. 

It was built more than 500 years 
ago by the powerful Swedish empire 
as an outpost on their Russian fron- 
tier. I read as I settled down by the 
water with my guidebook. I was so 
used to the idea of Swedes as gentle 
makers of diet crackers and givers 
of peace prizes that I had never 
considered the possibility of a vast 
and aggressive Swedish empire. 

I read on. The Great Wrath, the 
Lesser Wrath, endless invasions 



v.~v: 




and famines, cedings and border 
changes, 200 years of domination by 
Russia - Finland, it seems, has 
spent most of its existence being 
batted about between one northern 
power and another. 

I read late into the night under a 
bright sky. By the time 1 looked up, 
hours bad gone by, and I decided to 
wander along and see how small- 
town Finland coped with the mid- 
night sun. 

As in small towns everywhere, 
there is not a great deal for young 
people in Savonlinna to do, so they 
have devised their own solution. 
They drink. Perhaps it was because 
it was a Friday night or because 
school holidays had started. Per- 
haps it was the pressures ot Finnish 
history, or the manic phase the 
short summer season brings on. 
Whatever the reason, the young 
men and women of Savonlinna, as 


most F inns seem to be, are heroic 
tipplers. At midnight they were out 
on the streets in force and weaving 
about like bingeing sailors. 

M any Finns drink out- 
side because the bars 
are impossibly expen- 
sive, and that is fine 
by me. But somehow, armies of 
drunks throwing up in bushes and 
peeing off bridges are a little hard 
to take in the full light of day. On 
the other hand, if I spent nine 
months a year in a deepfreeze with 
the lights out, I am not sure I might 
not celebrate summer with a drink 
or two as welL 

The whole town was still sleeping 
it off when, early next morning, I 
placed a heavy rock in the bow of 
my rented canoe and paddled away 
from Savonlinna and out into an 
endless world of lakes and islands. 


Attractive when seen from the 
shore, Savo is spectacularly beauti- 
ful from the water. 

The Finns are a curious lot, 
moody and inward-looking, if they 
have a wild aspect to their charac- 
ter, they are also profoundly 
attached to the subtle and secret 
world of nature that surrounds 
them. There is nothing more impor- 
tant for urban Finns than to quit 
the city occasionally and find their 
roots again in the great outdoors. 
Most have a nahtn some where on a 
lake, a river or deep in the bush 
and, in summer especially, a return 
to such peaceful places is a ritual 

Bright mauve lilac bushes, neatly- 
trimmed lawns running down to the 
water, white-painted flag-poles fly- 
ing lfmg pennan ts of the Finnish 
colours, boats rubbing against 
wooden docks, busy elderly ladies 
in gardening hats - at first the 


shoreline that I paddled past was a 
version of suburbia. 

But as 1 began to lose myself in 
an archipelago of rocky pine-cov- 
ered islands, the properties became 
frequent and cruder. A small 
cabin set back in the trees, a boat 
pulled up on the rocks, a weathered 
sauna beside the water - Finns like 
to be close to nature. 

there is a northern beauty that is 
li ke no other beauty: nothing but 
wood, water and stone covers the 
face of the earth. It is a simplifica- 
tion that brings great peaceftflness. 
At the same time the extreme 
harshness of the climate can pro- 
duce intricate designs: twisted and 
writhing branches, sculpted cones, 
the finest covering of needles. 

I travelled for hours, the canoe 
gliding between islands over dear 
dark water laced with a skein of 
yellow pollen from the pine forests. 


Once I was startled when a vast 
naked Finn charged out of his 
sauna and with a great yaaaaagk! 
hurled himself down a long wooden 
dock and into the lake. 

Otherwise, calm reigned. There 
was the regular lift and fall of my 
paddle, the call of birds from banks 
of sedge, the occasional faint thok of 
wood being split beside a distant 
cabin. When evening came, I 
stopped at an uninhabited island. 
Tired. I lay down in moss as thick 
and soft as any mattress, and under 
a bright blue sky that refused to go 
away, fell asleep. 

■ As well as Satxmhnna there are 
towns nearby offering hotel farm 
and simple cabin accommodation. A 
good way to experience Savo is 
through a canoe/camping expedition. 
Niskanen Earn of Savonlinna (tel 
949-673 055: fax 957-273 101) rents 
canoes, houseboats and sailing boats. 


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FINANCIAL TIMES 


weekend September i 7/september is 1994 


WEEKEND FT XI 


TRAVEL 


Paddleboat pampering on Big Muddy 

Christina Lamb cruised part of the Mississippi on the Delta Queen, an historic steamboat fitted out like a floating palace 


I t takes just one blow of a 
stewnboat whistle on the quay 
at New Orleans to find your- 
self transported into the story- 
k°°* the Mississippi paddle- 
boats. Like multi-tiered wedding 
cakes, they churned the muddy 
waters with their giant wheels, 
transporting men in Sunday suits 
and women in be-ribboned bonnets 
towards their dreams. 

TheDefla Queen is about to set 
off. The great red wheel starts 
Chinning and a top-hatted man on 
deck taps out a reedy version erf 
■Toot toot tootsie, goodbye” on the 
cauMpe (or steam organ), sending 
puffe of smoke out of its shtninp 
brass pipes. 

In Ufe on the Mississippi, Mark 
Twain wrote that it was every boy’s 
ambition to be a steamboat man 
Generations of children brought up 
on his books have fantasised about 
running away from home and fol- 
lowing in Huckleberry Finn’s foot- 
steps along the great, brown river. 

For a not entirely modest sum. 
the Delta Queen Steamboat Com- 
pany offers the chance to slip away 
from modern-day stresses and live 
out that fantasy on one of its two 
paddle-wheel steamboats. Some peo- 
ple prefer the Mississippi Queen 

With SUCh modem amenities as m . 
ema and pool. But, for romantics, 
there is no choice but its elderly 
relative, the Delta Queen. 

Now in its 68th year of 
operations, the Delta Queen is the 
oldest steamboat in the world offer- 
ing cruises, and has been declared a 
US national historic l andmar k. It is 
like a floating palace with teak- 
panelled state-rooms, brass fittings 
and Tiffany-style stained glass. As a 
result, it is easy to imag ing the days 
when silk-clad ladies sat doing 
embroidery while the men played 
poker in the for’ard bar. 

The Delta Queen runs tours of 
between three and 12 days through 
America's heartland. Wanting to do 
things properly, I opted for one 
called “The Old South”, which 
promised to “recapture the ambi- 
ence and history of this gracious 
way of life". 

The scenery on the 682-mile round 
trip from New Orleans to Vicks- 
burg, on the lower Mississippi, is 
disappointing. Known as the chemi- 
cal corridor, the banks are lined 
with refineries and petto-chemical 
plants spewing out yellow smoke 
and thick oily globules. But you do 
not take a trip like this for the 
sights. 

Nor for the excitement. Progress. 



is so stately that the boat is often 
overtaken by cyclists. Fellow pas- 
sengers tend to be over 65 and like 
wearing name tags. For those who 
do not relish playing bingo or dress- 
ing up for floozie parades, day-time 
activities consist of reading the 
daily Steamboatm' Times and flying 
kites (which usually end up tangled 
in the wheel). 

Nights in the bar are spent listen- 
ing to file quavery crooning of the 
ever-smiling Charlotte Champagne 
or dancing in the Orleans room, 
where tireless Bob Schad Is a whizz 
on the banjo. But even the most 
energetic soon settle into the slow 
rhythm on-board, punctuated by 
occasional sightseeing stops and fre- 
quent large meafe of local delicacies 
such as alligator and catfish. 


The main pastime is river-watch- 
ing from one of the rocking chairs 
on deck. T.S. Eliot called the Missis- 
sippi “a great brown god”, and it 
captivates quickly. On waking in 
the mornings, we could see it at its 
most mysterious, swathed in a low 
mist from which the tops of sub- 
merged trees poked through. 

At night, under the silvery glow 
of a full harvest moon, it was 
almost beautiful- But it was at its 
most soulful during the day, the 
Delta Queen nosing through thick, 
chocolate-brown water which even 
the US Army Corps of Engineers 
cannot control as, flush with spring 
rains, it changes course and bursts 
hanks to show that it is not to be 
messed with. 

Known as Big Muddy, the Missis- 


sippi is the longest river in the US, 
draining all or part of 31 states on 
its winding, 2^00-mile journey from 
the hills of Minnesota to the Gulf of 
Mexico. It is also America's hardest- 
working waterway, carrying 500m 
tons of cargo each year in enor- 
mous, snaking lines of connected 
barges. These, as long as five foot- 
ball fields, tend to take np the 
whole river as they round bends. 

There is so much traffic that the 
Delta Queen's jovial Captain John 
Davitt compares the river to “driv- 
ing on an interstate highway”. But 
while motorway drivers may go fas- 
ter than Tmph. they do not have 
sandbanks and floating logs to con- 
tend with. Avoiding these obstacles, 
and the barges, requires great skill 
from the river pilots who drive the 


steamboats. And becoming a pilot is 
not easy: the licence Is granted in 
20-mile segments and those apply- 
ing have to draw, from memory, 
every turn of the river, sandbar, 
bridge and buoy in that stretch. 

The Delta Queen's stops are 
orchestrated to shield passengers 
from contact with file 1990s, 
although it is hard to avoid the tin , 
roofed slums and proliferation of 
riverboat casinos (to which many of 
the crew slip off). 

On onr first morning we moored 
at Oak Alley, a Greek revival-style, 
antebellum plantation house 
painted candy pink and reached 
through a grass alley of 300-year-old 
oaks so gnarled that the branches 
touch the floor and meet overhead 
to make an archway. Inside the 


drawing room, a painted wooden 
screen stands in front of the fire; it 
used to prevent beeswax make-up. 
layered on to cover smallpox scars. 
melting into the ladies’ laps. 

Our next stops were St Frands- 
ville, a pretty town under a veil of 
Spanish moss, and Natchez, home 
to more than half the country's mil- 
lionaires in the 1850s. Louisiana 
was the centre of the plantation 
economy and the lower Mississippi 
area is dotted with large, colon- 
naded houses, built mostly between 
the late 18th century and the civil 
war to show off the wealth gener- 
ated by cotton, indigo, rice and 
sugar. 

Every year, during March, many 
of these private mansions are 
opened to the public to show off 


opulent (and often tasteless) interi- 
ors, plus gardens resplendent with 
magnolia and dog rose blossoms. 
Their lavish settings, and names 
like Rosedown or Nottoway, inspire 
romantic images of crinolined belles 
and dashing beaux with waxed 
moustaches. 

Finally, we came to Vicksburg, 
which is positioned on a steep bluff 
overlooking the river. During the 
civil war it was a Confederate 
stronghold defending the whole of 
the lower Mississippi. In May 1863. 
General Grant’s army marched on 
the town; when the Confederates 

refused to surrender, he ordered his 
army to starve them out. The 
bloody siege lasted 47 days. Now. in 
the immaculately-kept Battleground 
Park, the old cannons still point at 
each other while red and blue mark- 
ers show where the Yankee and 
rebel troops fought. 

Each stop we made was marked 
by a huge puff of steam and a 
frenzy of calliope-playing. Locals or 
camera-toting tourists gathered on 
shore to wave us off. recalling the 
“Steamboat a’ comini" days of last 
century when paddle- wheelers like 
this used to rule the river. 

The Delta Queen was built in a 
Glasgow shipyard in the 1920s for 
the Californian Transportation Co. 
Its owners poured $875,000 into 
creating a four-tiered, bal us traded 
beauty. Used initially as an over- 
night dinner cruiser between Sacra- 
mento and San Francisco, the 
depression forced its withdrawal 
from service until Pearl Harbour. 
Then, it was requisitioned by the 
navy, painted grey and used as a 
troop transporter. 

Since than, the Delta Queen has 
passed through various owners and 
overhauls. It even survived congres- 
sional legislation passed to prevent 
the operation of wooden boats after 
a tragic fire on a cruise-liner. 

The most spectacular part of the 
boat is the engine room. Passengers 
are welcome to see the pistons driv- 
ing a 40ft-long Pitman arm con- 
nected to a cr ankshaf t which turns 
the 44-ton paddle wheel. 

Every so often on steamboats, 
pressure from the boilers gets so 
high that it has to be relieved 
through a safety valve - the origin 
of the expression “letting off 
steam". After a week being pam- 
pered on the Delta Queen, I can 
think of no better place to do that. 

■ Christina Lamb travelled with the 
Delta Queen Steamboat Co of 30 
Robin Street Wharf, New Orleans. 
Information: tel (8Q0V543 1949. 


Mexico’s version 
of Hallowe’en 

Bernard Simon joins a colourful and intense celebration 
of death in the south-western state of Oaxaca 


I t is 2am, and Atzompa ceme- 
tery is coming to Ufe. A brass 
band has struck up just inside 
the arched entrance. Family 
groups, their feces illuminated by 
hundreds of candles, are crouched 
around the graves, arranging the 
marigolds, loaves of bread, skull- 
shaped sweets and ornaments 
which festoon each mound of earth. 
More families, laden with decora- 
tions, are streaming in along a 
dusty, moonlit path from the 
nearby village. 

The night of October 31 marks 
the official start of the Dias de los 
Mnertos (Days of the Dead) festival, 
when Mexicans celebrate death in a 
fusion - and profusion - of Chris- 
tian rites and pre-Columbian tradi- 
tions. 

The festival, which reaches its 
climax on November 2, All Souls’ 
Day. is observed in many parts of 
Mexico. But it is at its most colour- 
ful and intense in villages like 
Atzompa, in the south-western 
state of Oaxaca, where the pre-Co- 
lumbian Zapotcc culture flourishes. 


There is nothing morbid or maca- 
bre about the Days of the Dead, but 
Mexico's version of Hallowe'en has 
more serious overtones than North 
American trick-or-treatlng. It is a 
serene, even a joyous, occasion 
when the living are reunited with 
the sp i r i ts of their dead relatives, 
while contemplating the transience 
of their own existence. 

No effort is spared to welcome 
the returning spirits. Senor Velas- 
quez, affable proprietor of the 
charming Las Golondrinas (The 
Swallows) Hotel in Oaxaca city, 
sets aside an entire room for the 
elaborate altar which is the centre- 
piece of every family’s celebration. 

The Oaxaca municipal authori- 
ties sponsor a competition for the 
best altar. Las Golondrinas has yet 
to win, bnt the certificates h a n g i ng 
in the guest lounge attest to its 
efforts. 

The celebration is not confined to 
homes and cemeteries. Oaxaca’s 
street markets are stocked with 
altar and grave decorations in the 
days leading np to the Dias de los 


Muertos. Most conspicuous are the 
round loaves of slightly sweet 
bread, known as pan de los muertos. 
The loaves come in many sizes, but 
each one is decorated with an angel 
face or skull painted on a small 
flour-paste decaL 

Activities around the tree-lined 
main square indude a fireworks 
display, live music and parades. 
Unfortunately, a North American 
twist has started to creep in. 
Urchins shouting “Hallowe'en, Hal- 
lowe’en” try to prise a few pesos 
from patrons at the outdoor cafes 
lining the square. 

Our excursion to the cemeteries 
started just before 11pm on October 
31. It was a chilly night, bnt 
Alberto, onr guide, had brought 
along a few bottles of mezeal - fire- 
water made from cactus juice. We 
were also each given a taper can- 
dle, decorated with strips of col- 
oured foil. 

Atzompa was our first stop, but 
the work erf decorating graves had 
barely begun at 11.30. We resolved 
to return later. Things were busier 



A night of vigil: no effort is spared to welcome the returning spirits fmwi Hvamg pum utnsy 


at two cemeteries in Xoxocotlan, 
another barrio on the outskirts of 
Oaxaca. A vendor of “hot dogs 
exqidsitos" was doing a brisk busi- 
ness at the entrance to one. At the 
other, some youngsters, presum- 
ably bored with decorating graves. 


had gathered around a ghetto- 
blaster. 

Activity was both quieter and 
more intense around the graves. 
Women did most of the work. At 
one grave, coloured sand had been 
arranged to form an elaborate, 


life-sized white skeleton adorned 
with an over-sized green and yel- 
low head-dress, also fashioned from 
sand. Dozens of votive candles cir- 
cled the family's work of art. The 
head of the grave was a mass of 
brilliant red gladioli, mixed frith 


Where only the Buddhas grow fat 


M andalay. Rudyard 
Kipling’s Tabled city, 
has retained its draw- 
ing power. Its lyrical 
name, its status as Burma's last 
royal capital and its isolation from 
the rest of the world give it a tena- 
cious hold over the traveller's imag- 
ination. 

But as the visitor jolts down the 
pot-holed road to the sprawling, 
dusty city, the enigmatic image 
gives way to something more sinis- 
ter. 

“Tatmadaw (the Burmese army] 
and the people crush the enemies of 
the union," screams the slogan on 
the fort that was race the site of 
Mandalay's royal palace and now 
serves as the army's headquarters. 
It is an absurd but depressing 
reminder of the mentality of Bur- 
ma’s ruling junta, the State Law 
and Order Restoration Council, or 
SLORC. 

Having earned world opprobrium 
for a catalogue of human rights 
abuses and for repression of the 
democratic movement in the late 
19S0s, SLORC is sensitive about its 
image. Tour guides sign declara- 
tions that they will not talk about 
the government - a stricture 
enforced by government informers. 
Severe restrictions are imposed on 
tourists’ freedom of movement. 


For all that, only the most blink- 
ered tourist would fail to notice evi- 
dence of the people's suffering. For 
example, any visitor would be 
struck by the peculiarity of the Bur- 
mese currency, which is chiefly 
denominated in 45 and 90-kyat 
notes. The 50 and 100-kyat notes 
were abolished, without any warn- 
ing, by the go v ern ment a few years 
ago. This attempt to damage the 
black economy cost many people 
their life savings. 

The signs of government repres- 
sion are noticeable even in sparsely- 
populated parts of Burma such as 
Pagan, an eerily beautiful, pagoda- 
studded city which has been largely 
deserted since it was sacked by the 
army of Kublai K ha n in 1287. Its 
crumbling remains of over 2,000 
temples and pagodas, which were 
erected by Burma's riders 900 years 
ago. form one of the most remark- 
able historical sites in Asia. 

Until four years ago, the village of 
Pagan was situated by tbe main 
temp les on tbe plain. But at the 
time of the elections in 1890, the 
villagers were ordered - without 
warning - to leave their village and 


move five miles down the road. “We 
lost everything." said one villager, 
gesticulating at .the flimsy wooden 
shack he now calls home. 

This was not an isolated inci d en t 
In recent years, the government has 
evicted hundreds of thousands of 
people from their homes and moved 
them into shanty towns. The gov- 
ernment's motive In these appar- 


ently pointless clearances is gener- 
ally regarded to be revenge on areas 
which opposed it 

Travelling around the country, 
tourists become acutely aware of 
the Burmese people’s appetite for 
even the most basic consumer 
goods. They are besieged with offers 
to trade old lipsticks, cigarette ligh- 
ters and even tbe shirts off their 
backs for opium weights and hand- 
crafted lacquer-ware. 

Further evidence of the hardship 
of the life of the Burmese people is 


provided by visiting the markets 
which generally offer a meagre 
showing of rice, dried fish, fly- 
blown meat, chillies, peppers and 
fermented fish paste. Tbe poverty of 
the people is evidence of the mis- 
management of a country which 
has sunk from being one of the rich- 
est countries in Asia to being one of 
its poorest - in spite of its natural 


wealth of rice, rubies, teak and oil 
Banna’s lack of development cre- 
ates a sense of being in a time warp. 
Transport in Burma is largely con- 
fined to ox-carts, pony traps, bicy- 
cles and Jeeps left over from the 
second world war. Older British 
makes of motor vehicles, such as 
Hillman and Triumph, are spoken 
of with the enthusiasm usually 
reserved for the latest model. “Brit- 
ish cars are the best-made cars in 
the world," said a tour guide sol- 
emnly. 


TO the tourist, however, Burma's 

backwardness and isolation 
undoubtedly contribute to its 
beauty and charm. Travelling in 
Burma leaves indelible impressions 
erf faded colonial grandeur, of gilded 
temples, of golden rivers snaking 
through paddy fields and of 
haughty cheroot-smoking women 
who pattern their feces with pale 


yellow make-up maria from ground 
bark. 

Also striking is the exuberance of 
the people's religion. Burma is one 
of the world’s most devoutly Buddh- 
ist countries, where nearly all men 
become monks for some part of 
their lives and most people donate a 
large proportion of their income to 
the temples. 

People's generosity is such that 
Buddhas grow fat with ever-increas- 
ing layers of gold leaf, while the 
temples' exteriors are kept glisten- 


ing with gold and jewels. Burma's 
most important temple, the Shweda- 
gon Pagoda in Rangoon, is plated 
with 8,688 solid gold slabs, with a 
tip set with 5,448 diamonds, 2^17 
rubies, sapphires and topaz and 
topped with a huge emerald. 

However seriously religion is 
taken, it remains a noisy, fun affair. 
The atmosphere or the temples 
sometimes resembles that of fair- 
grounds, with disco-like neon lights 
dotted around the Buddha images, 
loudspeakers noisily demanding 
donations and a variety of astrolo- 
gers, fortune-tellers and games of 
the sort that promise good luck if 
the player succeeds in throwing 
coins into bowls. 

Perhaps the most bizarre aspect 
of Burmese religion is the emphasis 
on spirit-worship. Burma has 37 of 
these spirits, which boast names 
like the lady Bandy Legs, or the 
Lord of Five Elephants. Temple 
grounds often have an array of stat- 
ues of these spirits, which are wor- 
shipped with an enthusiasm that 
stems from a belief that they will do 
mischief to those who do not pay 
them sufficient respect 


Visitors to Burma must live with the knowledge that tourism 
provides currency to sustain its regime , says Vanessa Houlder 


orange marigolds. 

Most families stay up all night 
They need to complete their grave 
and altar decorations by 4am when, 
according to Zapotec legend, the 
spirits of dead children return to 
earth. The spirits depart again for 
tiie netherworld about four hours 
later, when the tiny candles which 
commemorate them are snuffed 
out 

The adult spirits supposedly 
arrive during the afternoon of 
November 1, when the coloured 
strips on the candles are replaced 
with black ones, and depart early 
on the morning of All Souls' Day. 

Bnt we returned to onr hotel in 
Oaxaca even before the younger 
spirits had made an appearance. 
Our minds and bodies had suc- 
cumbed to the mezeal 
■ Oaxaca is 400km. or a 50-mmute 
flight, south of Mexico City. There is 
also a luxury bus sendee, which 
takes about eight hours. The most 
comfortable hotel m Oaxaca is the 
stone-walled Stauffer Presidents, con- 
verted in the 1970s from the 16th 
century convent of Santa Catalina. 
More moderately-priced hotels 
include Las Golondrinas. which has 
18 rooms facing lushly-planted court- 
yards: arul the Hotel Trebol which is 
close to the square and the Benito 
Juarez market. 

Other attractions around Oaxaca 
include the ruins of the ancient 
Zapotec mountain-top capital of 
Monte Alban ; the Mirtec and Zapo- 
tec settlement at Afitta; the toeavers' 
village of Teotitlan del Valle: and 
teeming markets selling everything 
from green-glazed pottery to fried 
grasshoppers. 


The country's backwardness 
makwa travelling around the coun- 
try something of an ordeaL Rat- 
infested, mildewed hotel rooms and 
erratic, accident-prone airplanes are 
part of most tours. 

In some respects, travel in Burma 
is non easier than it has been for 
some years. The country is relaxing 
some of the restrictions it imposed 
after the pro-democracy demonstra- 
tions of 1988. After several years of 
restricting visits to a maximum of 
seven days, visas are now valid for 
14 days. 

But visitors still have to contend 
with tbe exorbitant cost of visiting 
Burma. The official exchange rate is 
arbitrarily set at a level so high that 
buying a beer costs more than $10. 
Many tourists prefer to take the 
risk of exchanging dollars or selling 
whisky on the black market, which 
makes their money go 15 times as 
far. But the value of such ruses is 
limited: it is hard to avoid paying 
hard currency for large items, such 
as travel and hotels. 

Visitors must live with the know- 
ledge that tourism provides much of 
the hard currency that sustains the 
regime. But those whose curiosity 
overcomes their scruples are likely 
to be enthralled by a country 
which, as Kipling said, is “quite 
unlike any land you know about". 


K 



X 

X 

\ 




SEPTEMBER 1 7/SEPTRM HER I* I 4 *** 



ARTS 


Red Adair of ancient monuments 



I t is ten years now since the 
Historic Buildings and Monu- 
ments Commission was put 
to sleep and the more con- 
sumer friendly English Heri- 
tage was created. Yesterday the 
nation’s biggest guns gathered in 
London to lire salvos in praise of 
the heritage. 

The Prime Minister supplied his 
vision of the future, viewed brightly 
through National Lottery glasses; 
Sir Andrew Lloyd Webber was there 
to do what he does best, give away 
money. Elm of it to help finance the 
Open Churches Trust, which alms 
to keep churches unlocked for visi- 
tors: and sounding off at full blast, 
Jocelyn Stevens, chairman of 
English Heritage, described how he 
took on the assembled ranks of spe- 
cial pleaders, country landowners, 
dreamy academics, entrenched 
interests, and, worst of all. archae- 
ologists, and put them to the snrord. 

Stevens' speech, with some justifi- 
cation. concentrated on the heritage 
successes of the past few years. It is 
hardly a coincidence that he was 
appointed chairman in 1992, a 
seif-styled Terminator Three, deter- 
mined to shake up a cosy quango. 

He is now half-way through his 
allotted five year span fTm too old 
to do another term" - he is 62), and 
it is two years almost to the day 
that he announced his personal pro- 
gramme. a programme that caused 
convulsions inside English Heritage 
and beyond. This week in his work- 
manlike office in Fortress House, 
the defiantly bleak HQ or English 
Heritage, Stevens marked his per- 
formance - and gave hims elf top 


marks. "A hundred per cent of the 
strategy has been achieved”. 

For a man who saw off the print- 
ers in his newspaper days, and the 
even tougher cabal of art lecturers 
during his Rectorship at the Royal 
College of Art, English Heritage has 
turned out to be something of a 
pushover for Stevens. 

He has trimmed down the staff 
from 1600 to 1200 and another 200 
will go shortly when English Heri- 
tage’s workforce of skilled crafts- 
men. stone masons, gilders, and the 
like, is privatised, perhaps through 
a management buy out 


He has rid English Heritage of 
responsibility for 45 of its 400 prop- 
erties, most successfully by trans- 
ferring Us Avebury sites to the 
National Trust, and he hopes to get 
rid of another 44 by the end of the 
year. And he has cut down to size 
the London Region by handing on 
its powers over Grade II listed 
buildings to the boroughs. He was 
able to boast this week that while 
only seven London boroughs had so 
far agreed, with three more ready to 
sign up, they accounted for half the 
listed buildings in the capital 
London has been something of an 
obsession with Stevens. You might 
conjecture that he took on the job 
to wreak revenge on the London 
Region experts who so delayed his 
plans to add an extension to the 


Royal College that it pushed up the 
cost by ram “I loathe bureaucracy”, 
be explains. He talks with horror of 
friends who needed English Heri- 
tage permission to change the door 
knobs inside their houses. Presum- 
ably he believes that the local coun- 
cils, many of whom lack specialist 
staff, wifi be less pedantic. 

Stevens has dealt with the 
bureaucracy in English Heritage by 
being a one man band, a Red Adair 
for the heritage, swooping on crises 
anH quickly resolving them. He 

takes credit for getting something 
done at last about the Albert Memo- 


rial. He came up with the 
short-term cash needed to fix the 
Crescent in Buxton, currently the 
most important building in England 
threatened with demolition but now 
moving safely into local authority 
controL "People say I must be like 
Ring Canute. But in my case the 
water is coming up over my head”. 

His current pre-occupation is the 
great Ministry of Defence sell off. It 
owns over 700 listed buildings, 
including such historic and costly 
structures as the Royal Naval Col- 
lege at Greenwich and the army 
buildings at Woolwich. They could 
suddenly become somebody else’s 
liability, and En glish Heritage ca n 
hardly dodge its responsibility. It 
has been here before. By force-maj- 
eure it has already started to care. 


at a cost of £90m over ten years, for 
the nation's cathedrals and 
churches which are too much for a 
cash-strapped Church of England. 

So there is a paradox. With one 
breath Stevens talks of ridding 
English Heritage of all its sites; 
with the other he enthusiastically 
takes on new burdens. He also wel- 
comes direct approaches. The trans- 
fer to the London boroughs of mun- 
dane conservation matters in 
theory makes English Heritage 
more strategic; in practice it is Joce- 
lyn Stevens who dictates policy. 

When Lord Palumbo finally 


started this summer to construct 
his new James Stirling building on 
No 1. Poultry, no thought had been 
given to the archaeological poten- 
tial of a site at the heart of Roman 
London. Crisis: Stevens summoned 
Lord Palumbo and after a chat 
extracted a promise that archaeolo- 
gists could have 44 weeks on the 
plot and, on top. Lord Palumbo 
would pay £2m towards the cost 
This is the role that Jocelyn Ste- 
vens loves. He describes English 
Heritage as "a shipyard that takes 
in wrecks, repairs them, and then 
hands them to someone else to 
sail”. This workmanlike approach 
even extends to his flagship site. 
Stonehenge, which be accepts is "a 
national disgrace". He has rowed 
furiously with the Ministry of 


Transport and the local authorities, 
to say nothing of the Druids an d the 
Army, about his plan to create a 
3,000 acre national park on Salis- 
bury Plain over which the public 
can roam and admire 450 scheduled 
monuments. 

The typical Stevens solution is for 
the project to be financed from the 
receipts of a visitors centre on the 
far edge of the area. If he can knock 
enough heads together, and he 
seems to be making progress. Joce- 
lyn Stevens is quite happy to trans- 
fer the most important heritage site 
in the nation to a local Trust which 
will administer the Park, with cash 
coming from a commercial enter- 
prise running the centre, which 
could be visited by 750,000 people a 
year. Stevens sees' it as a natural 
millennium project ready by 2000. 

But while Stevens is frantically 

patching up his ship s anil shoving 

them down the slipway others need 
attention. He has just handed over 
Elm to a trust that will cherish Pell 
Wall Hall, a derelict house in Shrop- 
shire designed by Sir John Soane. 
He recently discovered a forgotten 
treasure in Danson House, Bexley, 
which needs rapid attention. 
Despite his ambitions he will never 
be able to whittle down his quango 
to a few strategic sites and probably 
would hate the consequences if he 
did. 

For Stevens pays Up service to 
devolution and deregulation but 
loves to interfere. "Although we 
have one foot in the past we also 
have one foot in the future”. He has 
made up for the disappointment 
that the National Heritage Fund 


was given the task of distributing 
lottery cash to the heritage by tak- 
ing a keen interest in potential lot- 
tery projects. He is giving Richard 
Rogers redevelopment of the South 
Bank arts centre a supportive push; 
he has handed the Tate Gallery 
money to shore up Us planned 
Museum of Modem Art at Bankside 
Power station; he is airing an idea 
for spending lottery money on 
smartening up the capital's parks. 

Jocelyn Stevens has a romantic 
view of his mission. "There used to 
he the US cavalry, now there is 
English Heritage". Undoubtedly his 
energy has achieved much. But as 
in every cavalry charge there are 
casualties, and not just the local 
gentry who find it harder to get a 
grant to repair their roofs; or Lon- 


don’s archaeologists, ruthlessly 
reorganised. 

There are the experts who could 
not stand Stevens' abrasive style 
and took their knowledge else- 
where. There are the problems that 
will not go away, like the ancient 
monuments, from RivauLx Abbey to 
obscure Bronze Age barrows, that 
will never find a new owner to cher- 
ish them and must remain part of 
English Heritage's fief. 

Steven’s has proved that the heri- 
tage will never become the past. In 
marked contrast to his declared 
aims, through his ambition and 
drive, he is constantly adding to the 
workload of his diminished band. 
He came to bury English Heritage; 
perversely he is giving it a fuller 
life. 


He came to bury English Heritage, but perversely Jocelyn Stevens 
is giving it a fuller life. Antony Thorncroft reports 


Photos 
for a 
cause 

T his portrait of Mar- 
lene Dietrich by Cor- 
nel Lncas is on show 
at the Saatchi Gal- 
lery in north London until 
September 30, but will be sold 
at Sotheby's on October 5 with 
an estimate of E300-E600. 

It is part of Positive View, a 
major exhibition of over 200 
photographs, many of which 
were donated by their creators 
and most or which will be sold 
at the auction to benefit two 
charities favoured by the Prin- 
cess of Wales, DEBRA and 
Chicken Shed Theatre. 

Among the photographers 
represented are Bill Brandt, 
Irving Penn and Annie Leibov- 
itz, and among the striking 
images are the last taken of 
Marilyn Monroe, by Bert 
Stern; Naomi Campbell cap- 
tured in 1990 by Herb Ritts; 
and Gilbert & George has seen 
in 1974 by Cecil Beaten. 

Another opportunity to 
acquire a work of art and help 
a good cause at the same time 
is available at Christie's until 
September 21. The Royal Acad- 
emy Schools want to establish 
a scholarship to commemorate 
a distinguished RA. the late 
Peter Greeoham. 

Many artists, mainly RAs. 
have donated works to help 
raise £150,000. You can bay 
paintings by Patrick Caulfield. 
Care! Weight John Hoy land, 
Peter Blake, Terry Frost and 
more at very reasonable 
prices. But hurry: they are 
going fast. 


A.T. 



Much ado about 
opera in Cardiff 


F rom some of the 
media reports this 
week one would think 
that every opera com- 
pany in Britain is looking for a 
new building. What has hap- 
pened is rather that the opera 
companies have shown them- 
selves to be the best prepared 
at putting their case for money 
from the national lottery. 

The position at the begin- 
ning of the week was that two 
- the Royal Opera House and 
English National Opera - had 
drawn up plans for improving 
the sites they already have. To 
these we can now add the 
major development outlined by 
Welsh National Opera on 
Thursday. Alone of the opera 
companies, it is proposing a 
wholly new building. An inter- 
national competition was set in 
motion late in 1993 to find a 
suitable design and this week 
the Cardiff Bay Opera House 
Trust announced its choice. 

From eight finalists the 
assessors selected Zaha Hadid. 
bom in Iraq, but based in Lon- 
don. Her glass necklace build- 
ing enclosing a central audito- 
rium looks an ambitious and 
striking choice. The cost is 
estimated at E43m, which com- 
pares well with the Royal 
Opera's far larger sum. 
Whether those dispensing the 
largesse from the National Lot- 
tery will see fit to hand out 
money to each of these rival 
operatic schemes must be a 
delicately balanced political 
question. 

In a way it will be a shame 
to say goodbye to the New 
Theatre, Cardiff, which is cur- 
rently WNO’s home. The thea- 
tre may be cramped, but it has 
intimacy on its side. Perhaps 


the company is aware of what 
it will be losing and has 
decided to schedule some 
favourite small-scale operas in 
the interim: Berlioz’s Beatrice 
and Benedict, which opened in 
a new production on Thursday, 
might almost have been writ- 
ten for the theatre. 

Given the popular success of 
Kenneth Branagh's film ver- 
sion of Much Ado about Noth- 
ing, it is surprising that Ber- 
lioz's adaptation of 
Shakespeare has not been the 
talk of the opera companies' 
newly-powerful marketing 

Richard Fairman 
reviews ‘ Beatrice 
and Benedict ’ 


departments. What we get at 
WNQ comes close to being the 
opera of the film. Elijah Mosh- 
insky 's thoroughly enjoyable 
new production manages to 
conjure just as poetic a vision 
of Italy on stage as the film's 
camera crew did actually on 
location. 

A warm evening light plays 
on the golden stone colonnades 
of a Sicilian villa. In the dis- 
tance are blue skies over the 
rooftops of a small village; 
nearer to hand family and 
guests are preparing the even- 
ing meal, tonight's menu being 
generous helpings of pasta. 
The scene is wonderfully airy 
and convivial, like the opera 
itself. Moshinsky has devised a 
beautiful naturalistic produc- 
tion with help from his design- 
ers, Michael Yeargan (sets), 
Dana Granata (costumes) and 
Howard Harrison (lighting) 


It is a mark of his care that 
the performers move so easily 
from Shakespeare to Berlioz 
and back again without drop- 
ping a stitch as they knit 
together their characterisa- 
tions. Sara Fulgoni makes a 
spirited Beatrice with curly red 
hair and reading glasses, 
clearly a girl with a will of her 
own. It helps that she has an 
individual voice, a shade big- 
ger, more biting and more 
boldly coloured than usual. 
Nor does Donald Kaasch's laid- 
back, shabby soldier of a Bene- 
dict have any less personal 
magnetism. 

Rebecca Evans as Hero and 
Patricia Bardon as Ursula join 
Fulgoni for Berlioz’s delectable 
duets and trios, carefully dis- 
guising the very different qual- 
ities of their voices. It Is not 
their fault that Donald Max- 
well's comic Somarone with a 
disparaging dislike for tenors 
and viola-players came dose to 
stealing the show, though 
Moshinsky might tone him 
down a notch or two. Indeed, 
the same might be said of the 
orchestra under John Nelson, 
an experienced Berlioz inter- 
preter who sometimes overesti- 
mated the volume necessary in 
this small theatre. 

Berlioz described the opera 
as “a caprice written with the 
point of a needle", which really 
is possible here. With seats for 
800 more people the new opera- 
house will demand a bigger 
repertoire to match, but then 
that is the project's very aim. 
Welsh National Opera is not a 
company that has ever been 
short of ambitions. 


Beatrice and Benedict spon- 
sored by Swalec 


M 


en bow to her. 
female employ- 
ees back ner- 
vously away, 
voices drop to an awe-struck 
whisiier as Madame sweeps 
majestically into the room. For 
just over a year now the di rec- 
tor of the Romanian National 
Opera in Bucharest has been 
Eucenia Moldovuarm. Much as 
Barbara J^lTord epitomised the 
diva in Fellini's .And the Ship 
Sails On. so this beautiful and 
imperious ex-soprano ishe sang 
at Covent Garden under Colin 
Davis i has “prima donna" 


A prima donna gets her show on the road 

As the Romanian opera plans its trip to Britain , Martin Hoyle visits the company in Bucharest 


emblazoned on her as if by 
Central Casting. 

She has a hard task. It is not 
pre-empting my musical col- 
leagues to note that, as in 
many ex-eastern bloc coun- 
tries, the current operatic pro- 
duction style is less Cecil B. de 
Mille than D.W. Griffiths, 
despite such nods to chic as a 


faintly ridiculous ballet 
l.Yafaicco) and hints of lesbian- 
ism {.Samson et Datila, where 
Delilah's enjoyment of her 
handmaidens' caresses 
explains much of her attitude 
towards Samson). 

Nabucco and Samson will be 
touring Britain from this 
month with Madama Butterfly. 


The Verdi was seen for a single 
performance in an outdoor per- 
formance at Rochester Castle 
last year, when robust attack 
garnered an unexpected crop of 
favourable reviews. The 
English promoter has been dis- 
concerted by new touches in 
tbe design and choreography. 
Long and bitter arguments 


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have ensued on the artistic 
front with the state-subsidised 
agency Artexim. 

This organisation illustrates 
the difficulties of a new mixed 
economy. Rumour has it that 
some of the old regime’s place- 
men have made a comeback, 
even in the corridors of the 
ministry of culture. Pressures 
of another sort are exerted by 
the private sponsors now vital 
to state enterprise; for 
Romania too has its multi-mil- 
lionaires, white-suited, open- 
necked. jewelled crucifixes on 
bare chests, boasting Italian 
connections and not to be 
questioned too closely on the 
source of their new wealth. 

Because private sponsorship 
is a recent phenomenon, 
patrons are not quite sure of 
their function. The news that 
the tour of a 200-strong tour, 
from Bristol to Edinburgh, 
entails a certain risk and 
might not accrue a jackpot 
profit, has taken some time to 
sink in. Allied to continual 
pressure from officialdom, the 
resultant hiccups in negotia- 
tion have resulted in brink- 
manship up to tbe moment the 
trucks began to load the scen- 
ery for their ten-day journey 
across Europe. 

But at last the company is 
trundling towards an unsus- 
pecting Bristol where the tour 
opens. Financially things are 
patched up, politically there 


are a few bruises. Musically 
the company shows the symp- 
toms of the new freedom. The 
outstanding Butterfly, between 
engagements in Vienna and 
Paris, has stipulated no more 
than a handful of appearances. 
The company fields three Cio- 
Cio Sans. I heard the third in 
Bucharest: movingly acted, 
intensely projected, even turn- 
ing strained higher and lower 
registers to advantage with 
dramatic use of words, she 
enjoyed the most integrated 
production of the three works 
on offer. In Butterfly the dead 
hand of tradition has been bro- 


ken and a sacrosanct 40-year- 
old production has been con- 
ceded “refreshment" by a 
young director and designer, 
possibly because the octoge- 
narian director is in no posi- 
tion to object - unlike the 
begetter of the Nabucco and 
Samson stagings, officially 
replaced but still a potent 
power in the wings. 

The young Stefan Neagrau. 
only recently elevated to artis- 
tic directorship, has a back- 
ground in film and ambitious 
ideas that align him with such 
internationally known Roma- 
nian directors as Serban *nri 


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name, nis previous produc- 
tions. including an Elisir 
d’amore with Dulcamara dis- 
pensing prohibition-era whisky 
and Nemorino signing on riot 
for the army but the secret 
police, marks him as a member 
of the "producer's opera” era. 

Of course, there are some 
who prefer the old style, in art 
as in politics. The Romanian 
National Opera is at the cross- 
roads. It must fight free of both 
Loadsamoney philistinism and 
bureaucratic politicking. But 
then the same might be said of 
Romania. 

The Romanian National Opera 
opens in Bristol on Sept 20, 
visiting Oxford, Sunderland, 
Edinburgh and Canterbury. A 
concert performance of 
Nabucco will be given at the 
Albert Hall on Oct 17. 


SENGEH & FRIEND LAN DEW 
SUNDAY TIMES WATERCOLOU 
COMPETITION 
An exhibition of the winded entries 
of ibis major an prsrc. Ai the 

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The Mall. 

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Admmion free. 

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FINANCIAL TI MES 


WEEKEND SEPTEMBER 17/SEPTEMBER 18 1994 


WEEKEND FT Mil 


ARTS 


The age of masked balls and hedonism 


Wil Uam Packer delights in ‘The Glory 

oj Venice 9 at the Royal Academy 




Otdyoung people take their pleasure 
the sea was warm in Maul 
Boland masks begun at midmghl 
among ever to mid-day.. ? 

B rowning’s ironical 
lament was written 
when the snuffing 
of The Most Serene 
Republic by Napoleon 
was Stm, if only just, a living mem- 
ory, and Venice herself at her low- 
est ebb under the Austrian heeL To 
look back to the 18th century, the 
period of this exhibition, was then 
indeed to look back to a golden age 
albeit the impalpable gold of a set- 
ting sun. 

The Glory of Venice? In turnin g 
to the second and last extraordinary 
creative flourish in the history of 
that constantly remarkable city, the 
Royal Academy completes a double 
begun 11 years ago with The Genius 
of Venice, which was that of her 
artists of the 16th century, from Bel- 
lini to Titian and Veronese. By the 
time of the birth of Gianbattista 
Tiepolo in 1606, a full century on 
from the death of Tintoretto, the 
days of Venice as one of Europe’s 
great powers had long gone, yet her 
social authority and creative ener- 
gies, at least, were uxKfiminished. 
Here she was at the turn of that last 
great century with churches and 
palazzi still to build, and the world 
to entertain. 

With such artists as Sebastiano 
Ricci and Piazzetta at hand, and 
Francesco Guardi, Canaletto and 
his nephew, Bellotto, and Canova 
and the younger Tiepolo, Domenico, 
all to come, here surely was a team 
that only the century erf Titian itself 
could outplay. Above all. there was 
the great Tiepolo, Gianbattista. bes- 
triding his tunes as Titian bestrode 
his. 

Given such evident accomplish- 
ment - and there are moments 
when the pyrotechnical magnifi- 
cence of it all, whether of the regat- 
tas and festivals of Carlevaris and 
Canaletto, the castles of Bellotto or 
the soaring compositions of Tiepolo, 
quite takes the breath away - what 
then had changed? For here we 
have the sacred and the profane in 
subject-matter, just as we had with 
Titian and Veronese, and ce rtainly , 
with Tiepolo and Piazzetta. two of 


the last great exponents of the great 
religious machine. 

Yet suddenly how worldly it has 
become. But you might say, was 
there not a certain splendid worldli- 
ness in Veronese, for example? Yes, 
indeed: but that quality now, in the 
18th century, seems to take on more 
openly hedonistic an aspect, flip- 
pant at times and even cynical And 
what is cynicism but a kind of civi- 
lised despair. How filghtfly Sebas- 
tiano Ricci’s angel kicks its heels at 
its visitation of St Peter. With what 
wicked a toss of the head Piazzetta ’s 
angel flirts with its assorted aatnts 
- none of these artists stands any of 
that nonsense of the sexlessness of 
angels. 

How well-seen and physical in the 
modelling, how womanly, is Tiepo- 
lo’s Virgin of the Immaculate Con- 
ception, and how easily he slips into 
the franker if still discreet eroticism 
of the delicious Anaida with Rin- 
aldo in her garden. “Was a lady 
such a lady, cheeks so round and 
bps so red,/ On her neck the small 
face buoyant, like a bell-flower on 
its bed J O’er the breast's superb 
abundance where a man might base 
his bead." And if we can take our 
eyes off What is going on, we find 
the painted surface no less physical, 
folds and foliage alike bandied with 
a bravura freedom and sophistica- 
tion that are nngiirpaftgahTo 
And of course life itself goes on. 
to be celebrated as much in the 
mundane commerce of the city as in 
its festivals. With Carlevaris it is 
the state procession on the Grand 
Canal; Canaletto gives us both the 
fun of the Regatta and the teeming 
wharves of the Badrur. Guardi takes 

US into the ma sked gaming halls of 
the Ridotto. We follow Longhi 
through the facMeptal mwai round 
and go alfresco with Domenico Tie- 
polo to one of the most humorously 
delightful parties in the show, with 
his masked dancers prancing so 
neatly, footing it featly. 

It is <me of the many strengths of 
the exhibition that artists hitherto 
under-played, such as Domenico 
Tiepolo, Carlevaris and Longhi, 
even Bellotto and Piazzetta, now 
come into their own. The three Bel- 
lotto paintings, of Verona, Dresden 
and the castle at Konigstein. are 
spectacular together, and suddenly 








Discreet eroticism panted with an unsurpassable bravura freedom: TOnaldo and Amdda to her Garden 1 , c.1745 by Gianbattista Tiepolo 


'i' - 

: .V&V * W '~C .* <v-' ;< - 


prefigure the. northern realist 
schools of the next century, and the 
work of such artists as Kobke and 
Eckersberg. The drawings of head s 
by Piazzetta, too, of young men and 
women flirting together, is a revela- 
tion. and it is the greatest pity that 


more was not made erf the drawings 
of Longhi, here represented by but 
two indifferent examples. 

It is altogether a magnificent 
show, and “Glory” is indeed the 
right word for it, if only we are 
worldly and uncensorious enough 


to accept that esRpntiai , insistent 
worldliness. “And what of Venice 
and her people, merely born to 
bloom and drop./ Here on earth 
they bore their fruitage, mirth and 
folly were the crop: / What of soul 
was left, I wonder, when the kissing 


had to stop." Did she, 2a Serenis- 
sima, foresee that end? Perhaps: but 
she also knew, for the moment, that 
it had not stopped yet It is that last 
great sad, wonderful interval that 
we now celebrate with her again. 

■ The Glory of Venice 1700-1800: 


The Royal Academy of Arts, Picca- 
dilly Wl, until December 14; spon- 
sored by Sea Containers and its 
subsidiaries - Hoverspeed, Venice 
Simplon-Orient-Express, Hotel Cip- 
riani, Hotel Splendido, Villa San 
Michele. Supported by Classic Fill 


The bile of Berkoff I W 


Alastair 
Macaulay on 
a double bill of 
decadance 


T here are many awful 
things about the 
world in which we 
live, and the actor/au- 
thor/director Steven Berkoff is 
right to hate them. But you 
know what? Tire way he hates 
them only makes the world 
worse. 

In his current double bill at 
the Riverside Studios, Berkoff 
unleashes his usual vein of 
satiric hatred on the following: 
misogyny, lust witbout love, 
greed, narcissism, over-emo- 
tional is in, sensationalism, 
homophobia, fattism, brutality, 
and more. And. as usual, his 
method is to depict these 
things in sustained satire. 
He wants to lampoon the 
decadence of the society we 
know. The trouble, alas, is that 
his method is itself decadent 
The first, and shorter, of his 
two new offerings. Sturm und 
Drang , is about three upper- 
middle-class sophisticates. The 
starting-point is two men air- 
ing in private their contrasting 
views of women. Plainly mod- 
elled on the sustained dia- 
logues to be found in Moli&re’s 
plays, and an the rhyming iam- 
bic pentameters into which 
Moltere is usually translated 
into English, it also means to 
show us the awful shallowness 
and selfishness with which pol- 
ished modern men discuss 





Steven Berkoff In ‘Brighton Beach Scumbags* 


women. (“My friend, it’s really 
quite obscene./ To get your 
rocks off needn’t cost a bean.") 
Then a woman joins them, and 
her talk Introduces us to other 
kinds of awful shallowness and 
selfishness. 

Everything is shaped by Ber- 
koff's relish for flashy but hol- 
low dialogue. You are encour- 
aged to laugh at what his 
characters say and to despise 


Neat one, Martin. 



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them at the same time. He 
should be scripting the “Great 
Bores erf Today" cartoon to Pri- 
vate Eye. 

Here, however, he is, clutch- 
ing at any rhyme and any 
metre that will help him out 
The pentameters turn into 
heptameters and hexameters, 
the iamhc sometimes turn into 
anapaests, the rhymes become 
desperate (“horrid" with 
“vomit") or just vanish 
entirely. “Also I'm a bit pre- 
menstrual and my fox has bro- 
ken down” is one of the better 
verse lines here: no kidding. 

I would be less bothered if 
Berkoff and his coactors per- 
formed in a less facile and 
flashy method. He likes his 
pieces to be performed with 
maximum show-off. Technical 
bravura abounds. 

Thus Berkoff, Timothy 
Walker and Katy Carmichael 
zoom from fortissimo to pianis- 
simo, run two or more sen- 
tences together in a single 
breath, demonstrate florid 
gestures (the wrist- to-forehead 
classic is recurrent), and so 
forth; and yet they also fre- 
quently chop up verse lines 
into separate staccatL Were it 
anyone else but Berkoff who 
spoke the line “Her. Satin. 
Legs. Uncross, like. Sighs.". I 
would speak of unstylish deliv- 
ery; but this pause-laden tech- 
nique is widespread here. 

There follows Brighton Beach 
Scumbags, in which Berkoff 
applies his scathing satire to 
four s unbathers from Ching- 
ford. The play later includes 
two gay men; Berkoff is suffi- 


ciently px. not to satirise them, 
and so we have the weird expe- 
rience of seeing one of Ber- 
koff’s typically overblown car- 
toon sketches suddenly deflate, 
after an hour or so. into flat, 
mimsy, but uncaricatured con- 
versation for gays. 

Berkoffs big point here - he 
wields it like a cosh - is that 
all these people suffer from 
unnecessary paranoia. The fat 
lady thinks that the gays are 
laughing at her, the gays think 
she is objecting to them. 

As a pathologist of our social 
ills, Berkoff is of sophomoric 
level; but those of you who like 
theatre to preach important 
messages should rush along. 
Unfortunately, you will have to 
put up with Berkoffs stale par- 
ody of Essex Person. There is 
the endless which-motorway- 
did-you-take conversation, 
something Berkoff handles 
with none of Alan Ayckbourn's 
skill; there is the poofs-are-just- 
women-in-male- bodies line 
(uttered more wittily in Jona- 
than Harvey’s current Babies 
at the Royal Court). 

The terrible unoriginality of 
Berkoff's mind is made worse 
by his cartoon method. Derek, 
Dave, Dinah, and Doreen are 
all mere types, and there is 
only one fleeting moment 
when Berkoff has thp human- 
ity to turn one of them into a 
real individual with specific 
peculiarities. This moment 
occurs late on, when Derek 
mends a quarrel with Dinah by 
suddenly lying face-down on 
her lap so that she can scratch 
his back: a moment so partic- 
ular, and surprising, that it has 
a freshness like no thing else I 
have ever seen in Berkoff's 
work. (It doesn’t lead any- 
where here, but never mind; it 
gives me hope.) 

This moment apart, there is 
no transparency to Berkoff’s 
art It is designed not to draw 
attention to its subject matter 
but to the way in which that 
subject matter is scripted and 
delivered. 

Tins constant display of tech- 
nique and method, this refusal 
ever to submerge the ego into 
another character and into the 
larger world beyond Berkoff, is 
the prime reason I call Berkoff 
a decadent artist 

If a thing is worth doing, 
Berkoff wbb to be saying, it 
is worth doing noisily, strenu- 
ously and frequently. 

Sturm und Drang and Brighton 
Beach Scumbags are at the 
Riverside Studios, Hammer- 
smith, Wfi. 

Chess No 1039: 1 Qb8 (threats 
Qxa8 and Nf?+)- If Rxb8 2 Ne5 . 
and 3 Nf7 or Nxg4. If Ba2 2 Qh2 I 
gxf3 3 Kgi 


W hile France's 
most internation- 
ally famous festi- 
val flounders 
into finanrial and administra- 
tive troubles at Aix. the 
smaller Festival du Pferigord 
Noir has just completed its 
12th flourishing season. Set on 
the edge of the Dordogne, the 
musical junket in the territory 
of pfitfi, confit and truffle prof- 
its from both compactness of 
vision and flexibility of lay-out 
The six-week festival is sub- 
divided into themes under the 
general division of Baroque 
and Romantic. Different series 
of concerts overlap; venues 
include the region's Roman- 
esque churches and at least 
one massive chateau; and the 
organisation is flexible ennug jh 
to relocate at short notice a 
concert from a cultural centre 
to a medieval cathedral in the 
event (as on my first evening) 
of the heat causing both per- 
formers and strings to wilt 
Of notable interest to 
English readers is the festival’s 
British presence. This year the 
Tallis Scholars prompted no 
nervous thoughts of that 
famous murderous ledge on 
the cliff-face of Roque St-Chris- 
tophe’s troglodyte city-fortress, 
still gleefully pointed out as 
the Englishman’s leap. More 
Anglo-Gallic cordiality from 
the master-classes with a resi- 
dent chamber ensemble under 
the benign tutelage of Martin 
Lovett, from our own Amadeus 
Quartet of revered memory. A 
performance of the Schubert 
String Quintet revealed that 
rare thing, a young French 
ensemble actually devoted to 
the idea of chamber music, not 
merely a collection of soloists 
manques. with a young first 
violin of potentially interna- 
tional standard. 

The ability to cut the festive 
coat according to the financial 
cloth which, according to the 
ebullient artistic director Jean- 
Luc Soule, distinguishes Pferi- 
gord from the top-heavy and 
over-ambitious Aix. was seen 
in this year's operatic offering. 


Well tuned in 
Perigord 

Martin Hoyle visits the festival 


While previous festivals have 
seen Haydn productions with 
orchestra, this year modestly 
fielded a three-hander by 
Adolphe Adam. Le Toreador, 
which proved enchanting. Best 
known in this country for his 
ballet music [.Giselle), Adam’s 
bubbling score for this little 
descendant of the vaudeville 
chugs tunefully somewhere 
between Rossini and Offen- 
bach, though unexpected mod- 
ulations and a typically French 
vein of drowsily chromatic sen- 
suality look forward to Poulenc 
and Satie - underlined by the 
happily minimal rescoring of 
the accompaniment for flute 
and piano. 


The bat that had dive- 
bombed the opera in the court- 
yard of the Chateau de Haute- 
fort brought his mate for next 
evening’s indoor song recital. 
Edda Moser froze in mid- 
Brahms with a look that com- 
bined outraged majesty and 
hurt tittle-girl bewilderment, 
drawing all eyes to the fr isking 
chauve-souris above our beads. 
“I go. I come back," she mut- 
tered. sweeping off the stage. 


Much waving of arms, opening 
of windows and one waggish 
cry of “Die Ftedermaus!” from 
the audience before order and 
the diva were restored. 

Moser’s soprano has lost col- 
our and richness in the lower 
register. She now excels in 
characterisation and dramatic 
declamation. Her final Strauss 
group showed why she now 
sings Salome. Moser remains 
an opera star, gestures and 
expressions slightly too large 
for the concert platform; can 
Elektra be for away? Dinner in 
the courtyard afterwards, with 
a li ghtning storm illuminating 
the dark panoramic sweep of 
the countryside as seen from 
the castle's hilltop eyrie; and 
the French gift of catering to 
both high art and the inner 
man had never seemed more 
admirab le. 



T he frothy plot of amo- 
rous intrigue, misun- 
derstanding and bluff 
unfolded against 
Michel Ronvaux's wittily inge- 
nious designs: black and white 
panels that could be reversed 
or blossom out in the maimer 
of pop-up picture books. As the 
young flautist whose knee- 
trembling impact on another 
man’s wife resembles Alfred's 
tenorial terrorising of Rosa- 
linde in Fledemums, Yves 
Coudray deployed a graceful 
lyric tenor that may be heard 
at Wexford next year. Edwige 
B curdy’s soprano leggiero in 
the Mady Mesplg mode did jus- 
tice to the sweetly tootling 
variations on “Ah! Vous 
dirai-je, Maman" that form the 
basis of a charming trio. The 
enthusiasm, high spirits and 
stylishness of Mireille Lar- 
roebe's staging illustrated the 
French gift of weaving ele- 
gance out of the slenderest 
resources. 


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XXV WEEKEND FT 


FINANCIAL TIMES WEEKEND SEPTEMBER 17/SEPTEMBER 18 1994 


BOOKS 


I t is the summer of 1966 
and London, as pro* 
Bounced by no less than 
Tune magazine, is the 
city of the decade. 
Frank Sinatra is fighting a 
brave rearguard action in the 
singles' charts with “Strangers 
in the Night”, but his noctur- 
nal xamblings belong to a dif- 
ferent age. The talk every- 
where is of light, min, hope and 
glory. The lazy shuffle of the 
Kinks’ "Sunny Afternoon” 
knocks the moc king exuber- 
ance of the Beatles' “Paper- 
back Writer" off the top of the 
hit parade in the very week 
that Bobby Moore receives the 
glistening Jules Rimet Trophy 
from the Queen. The vibe 
spreads; in the US, 8.000 Viet- 
nam protestors encircle the 
Pentagon In an attempt to levi- 
tate it Nothing seems impossi- 
ble. 

The Beatles take their demo- 
tion with good grace; they are 
preparing for the release of 
Revolver, an album so packed 
with ideas and innovation that 
they can afford to be magnani- 
mous. Ian MacDonald, in his 
loving and superbly-argued 
analysis of the group's 
recorded legacy, is unoriginal 
in seeing this splendid moment 
as a cultural peak from which 
we have gradually been 
descending into mass-produced 
banality; his success is to show 


The Sixties deconstructed 

Peter Aspden on sex , drugs , rock and roll and the decline of western civilisation 


in the finest detail just what 
went into the seemingly effort- 
less succession of master- 
pieces, »nd how the whole 
Hi jug - the Beatles and the 
Sixties - came apart 
The book's meticulous track- 
by-track examination is a fund 
of fresh insights Into very 
familiar territory. To take just 
one example, MacDonald 
reveals that “Michelle”, com- 
monly considered an irrita- 
tingly cloying piece of McCart- 
ney -esque whimsy, was in fact 
co-written by John Lennon, 
who stole a line from Nina 
Simone’s “I Put a Spell on 
You” for its middle section. 


P layfully ironic 
throughout (“I want 
you, 1 want you, I 
want you; 1 think 
you know by now”), 
the refined finfehing touch was 
applied by McCartney's pain- 
staking bass line, which he 
described as “a kind of Bizet 
thing” (referring to the haba- 
nera from Carmen). This was 
no throwaway nursery rhyme. 


yet what was envisaged as an 
album filler was good enough 
to take The Overlanders to 
number one for three weeks. 

The relationship between 
Lennon and McCartney unsur- 
prisingly forms the human 
core of MacDonald's m usings. 
Again, the story is hardly on fa- 
miliar. the two friends who ini- 
tially channel their competi- 
tiveness into their work, only 
to get bogged down in je&lousy, 
rancour and law suits. But 
MacDonald reverses some of 
the more obvious stereotypes, 
emphasising Lennon’s capacity 
for sentimental balladeering 
Hte Boy”, “If I Fell”, “Yes It 
Is”) and McCartney's penchant 
for biting sarcasm (asked for a 
sleeve-note for Lennon and 
Yoko Olio's Two Virgins, he 
responded with: “When two 
great Saints meet, it is a hum- 
bling experience"). 

By the time of Abbey Road, 
both the Beatles and the 
decade were falling into disre- 
pute. MacDonald takes the 
bold step of identifying one 
song.- Lennon's "Come 


REVOLUTION IN THE 
HEAD; THE BEATLES’ 
RECORDS AND THE 
SIXTIES 

by Ian MacDonald 

Fourth Estate £15. 373 pages 

FATTHFULL 
by Marianne Faitbfull 
with David Dalton 

Mlchad Joseph £13.99. 333 pages 

X-RAY; THE 
UNAUTHORISED 
AUTOBIOGRAPHY 
by Ray Davies 

Viking £17.50. 419 pages 


Together” , as a turning point, 
“embodying a pivotal moment 
when the free world's coming 
generation rejected established 
wisdom, knowledge, ethics and 
behaviour for a drug-inspired 
relativism which has since 
undermined the intellectual 
foundations of western cul- 
ture." 


Not that Marianne Faithful! 
would have noticed. Indeed, 
bearing In mind her aristo- 
cratic Austro-Hungarian heri- 
tage. it could be argued that 
decadence, gloom and deathli- 
ness coursed through her veins 
long before the various sub- 
stances which she injected in 
celebration of and escape from 
sixties counter-culture. Just 
check out the references in her 
first chapter (“Childhood”): 
Sartre. Kafka, Virgil, Coltrane, 
Beethoven, Jung, Nietzsche; 
Faithfull had little to learn 
from a bunch of blues-loving 
upstarts like the Bolling 
Stones, but she managed to 
prostrate herself before their 
relentless ambition just the 
same. 

Faithfull is a humorous, 
self-effacing and eerily dispas- 
sionate account of a life lived 
In nearamstant psycho-phar- 
maceutical turmoil, punctu- 
ated with sharp observations 
(describing “As Tears Go By” 
as “slightly existential, but 
with a dash of San Remo sang 
festival”) and sprinkled with a 


bewildering variety of sex, 
drugs and rock and roll stories. 

It is a winning autobiogra- 
phy - it is difficult to dislike a 
woman who, on hearing of 
Mick Jagger’s wedding to 
Bianca, instantly fills herself 
with Valium, downs three 
vodka Martinis, lurches into an 
Tndfon restaurant, faffs into a 
curry, spends the night in Pad- 
dington police station, signs 
autographs for the officers and. 
on leaving, quotes De Quincey 
to the grey London skies. 

Early in her musical career, 
Faithfull shared a tour with 
the Kinks, whom she found to 
be “very gothic, creepy and 
silent”. Indeed, Bay Davies's 
“unauthorised autobiography” 
(in which a fictitious “journal- 
ist” gets Davies to open up to 
him) is much more down-beat 
than FaithfolTs fruity epic, but 
then again Muswell H2U was 
no fm-de-s&cle Vienna. The 
problem Is that Davies, not 
having been semi-comatose for 
three-quarters of his life, expe- 
rienced much more acutely the 
pains which, fame inflicted on 


hmi particularly the break-up 
of his marriage and tile inevi- 
table legal wrangles with his 
management, it Is unlikely 
that the Kinks will represent 
more than a footnote to the 
great gfatfeq saga, but Davies 
could certainly write a mean 
pop song. 


W hich brings 
us back to 
MacDonald 
and his 
decline-of- 
dvilisation thesis, expounded 
in a couple of essays which 
sandwich the main part of his 
book. This is a line of argu- 
ment, of course, which more 
commonly comes from those 
who would date the "turning 
point” at Elvis's first televised 
pelvic thrust, at the birth of 
rock and roll. MacDonald uses 
the Beatles’ material to con- 
vince us otherwise. Is there 
any piece of music in this cen- 
tury which can match the joy 
and optimism of “1 Want to 
Hold Your Hand", or “Eight 
Days a Week", or “Penny 
Lane”? Today’s pop music, 
sampled, flattened and homo- 
genised or today’s rock music, 
pompous and ponderous, pro- 
vide plentiful evidence for Mac- 
Donald’s conclusion, that 
“something in the soul of West- 
ern culture began to die during 
the lute Sixties”. 


An odd mismatch 
made in heaven 

L ady Ida Sitwell influential lover, Otto Gross, be Impotence - guess who was 
describes a Chianti- was a disciple of Freud and a the model for Sir Clifford Chat- 
shire luncheon to her morphine addict terleyl 

son Osbert in 1926: “A Frieda, after 13 years in a None of which damag es Law- 


L ady Ida Sitwell 
describes a Chian ti- 
shire luncheon to her 
son Osbert in 1926: “A 
Mr DJL Lawrence came over 
file other day. a funny little 
petit-maitre of a mm with flat 
features and a beard. He is a 
writer, and seems to know of 
you. His wife is a large Ger- 
man.. .” 

Lawrence would be dead 
wi thin four years, Frieda in 30. 
It was - though Lady Ida 
would never know - one of the 
most extraordinary and extrav- 
agant marriages in the history 
of literature. Brenda Maddox 
has written a most readable 
account, not so much of Law- 
rence as of his marriage - “a 
mismatch made in heaven”, as 
she puts it 

She starts from her response 
to “a likeable Lawrence: a dev- 
astating mimic, an inspired 
teacher, a handy householder, 
a hard-working journalist, a 
loyal brother and generous 
ancle, a good cook, an eager 
traveller and brilliant travel 
writer, a dogged, dreadful 
painter, an ecological visionary 
and, above all - as he saw him- 
self - a married man". 

That said, she does not 
ignore the zest of the portrait 
the appalling tensions within 
the marriage, the alarming 
anti-democratic political 
instincts, the sexual problems 
which were evaded with sod- 
omy. the cruel selfishness 
which denied Frieda her chil- 
dren. “Lawrence's real vices 
were ambivalence, grandilo- 
quence and irascibility" says 
Maddox, and later, in compen- 
sation, quotes Edward Garnett 
on the man’s “lovableness, 
cheekiness, intensity and 
pride". 

Unlike the host of earlier 
books about Lawrence, this 
one is extremely brisk about 
the childhood; even Jessie 
Chambers scarcely figures. 
After Lawrence's euthanasia- 
killing Of his beloved mother, 
the focus is on Frieda Weekley. 
Bom a Von Richthoven, she 
was a member of a liberated 
and intellectual German family 
- Maddox is good on pre-war 
Munich where Frieda's most 


influential lover, Otto Gross, 
was a disciple of Freud and a 
morphine addict 

Frieda, after 13 years in a 
boring Nottingham marriage, 
"did not hesitate to appoint her- 
self the 27-year-old writer’s 
erotic muse, a role which, with 
the exception of the war years, 
would keep them out of 
Britain: “In their contempt for 
the stupefying hypocrisy of 
Rn gianri J with its concern for 
appearances and its deep 
shame abont the body, they 
were as one. and in their odd 
alliance they were refusing to 
collaborate in it any longer". 

This is a literary biography 
which does not make the com- 

THE MARRIED MAN: A 
LIFE OF D.H. 
LAWRENCE 

by Brenda Maddox 

Sinclair-Stevauon £20. 631 pages 

FRIEDA LAWRENCE 
by Rosie Jackson 

Pandora £14.99. 240 pages 


mon mistake of under-esteem- 
ing the literature (Maddox is 
interesting, for instance, on St 
Mawr, and on the curious par- 
allels between a Lawrence 
story The Shadow in the Rose 
Garden and Joyce's earlier The 
Dead), bat a book about a mar- 
riage has to tackle the detail of 
that relationship. It was, we 
are assured, a sexually ill- 
matched association: “Anal sex 
seems to have been the Law- 
rences' resolution to the con- 
flict between them". 

Then there was the matter of 
Lawrence's possible homosex- 
ual leanings - “Lawrence was 
not like Forster, a suppressed 
homosexual who did not have 
the courage of his desires... 
He was a hypersensitive man 
unable to bring together the 
male and female components 
of his personality, and in the 
grip of a terror of losing the 
boundaries of self”. There may 
have been one homosexual epi- 
sode in 1917 with a farmer 
friend, just as there was one 
known adultery, with Rosalind 
Baynes; after that there would 


be impotence - guess who was 
the model for Sir Clifford Chat- 
terleyl 

None of which damag es Law- 
rence's importance to all of us. 
“My great religion Is a belief in 
the blood, the flesh, as being 
wiser than the intellect. We 
can go wrong in our minds. 
But what our blood feels and 
believes and says, is always 
true", wrote Lawrence in a 
famous - notorious - remark. 
We can deny It, we can be rude 
about him and, if we wish. Ms 
fat German wife, but we can* 
not pretend to be beyond his 
infhimm. 

There is of course much else 
of interest and value in this 
long, deeply-researched his- 
tory. New Mexico, Mexico, Aus- 
tralia ( Kangaroo as "the most 
under-appreciated and bio- 
graphically provocative of any 
of his novels”), the supreme 
travel writing (Sea and Sar- 
dinia after an eight-day visit!). 
Lady Chatterley (“God forbid 
that I should be taken as 
urging loose sex activity” 
wrote Lawrence to Lady Otto- 
line Morrell - too late, of 
course). 

My only regret is that we do 
not have more letters, which 
Maddox rightly explains is 
what makes her like him Con- 
sider, for instance, a 1922 letter 
to Forster, not mentioned here 
- "I think yon made a nearly 
deadly mistake in glorifying 
those business people in 
Howards End. Business is no 
good”. Isn't that the best ever 
comment on Mr Wilcox? 

Rosie Jackson's Frieda Law- 
rence, with the same jacket 
photograph as the Maddox, is 
misleading. It turns out to be a 
hundred pages in defence of 
Frieda - answering in particu- 
lar the tittle-tattle about Frie- 
da's promiscuity and pointing 
out that she spent only 18 of 
her 77 years with Lawrence - 
and a reprint of Frieda's own 
autobiography. Not 4 But The 
Wind, which dates from 1935 
and is economic with some of 
the actuaUti, yet has its own 
compulsion. A rather odd vol- 
ume, but valuable to addicts. 

J.D.F. Jones 


Troubled tales A 


T here is something 
enigmatic - many 
people would use a 
stronger word - 
about Gerry Adams, the Sinn 
Fein leader. What is really 
going on behind that well- 
trimmed beard? Most of us 
have forgotten Adams's voice, 
too. since British law 
demanded that his broadcast 
words be dubbed. Instead we 
have - quite possibly to 
Adams’s advantage - the 
soothing sounds of professional 
actors. 

Although most of them have 
appeared elsewhere, these rem- 
iniscences, short stories and 
political essays could not be 
more timely. Anyone remotely 
gripped by the possibility of 
peace in Northern Ireland fol- 
lowing the IRA ceasefire of 
August 31 should read these 
pages, if not for their exculpa- 

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tory logic then for the tone of 
voice beneath. 

Adams writes fluently and 
observantly, even if in his 
scenes of working-class Catho- 
lic life the dialogue sometimes 
strikes the reader as artificially 
rehashed. He displays a hard- 
edged compassion for the silent 
poor, the old and the 
down-and-out. 

Occasionally sentimental, 
these are quite clearly moral 
tales - and the moral is usu- 
ally political. An old woman is 
told by a keen young parish 
priest to choose between her 
politics and her religion; an 
unmarried brother and sister 
fall out over the rightness of 
armed resistance. Yet there is 
also a portrait of a “good" 
Orangeman. The unionists 
could do with so gifted an apol- 
ogist. 

In the polemical pieces - par- 
ticularly those explaining his 
political views and justifying 
the IRA's terrorism - the less 
humane voice of Gerry Adams 
comes through. It Is the hector- 
ing sound of I96teiu5pired rev- 
olutionary socialism and class 
struggle. Northern Ireland is a 
“colonial statelet”; it is a police 
state practising South African 
apartheid; bombing and mur- 


der are “physical force poli- 
tics". 

Adams says he deeply 
regrets the deaths and injuries 
caused by The Troubles. He 
talks about “considerable 
moral problems in reiatipn to 
armed struggle.” No doubt he 
means it, as he means the rest 
But has he a clue how this 
sounds to people outside? 

The last essay, written this 
year, manages to be both 

GERRY ADAMS: 

SELECTED WRITINGS 

Brandon £7. 95. 3/6 pages 

uncompromising and ambiva- 
lent; “It is desirable in practice 
that the consent, or assent, of 
as many unionists as possible 
should be obtained to the steps 
that would be practically 
required to bring about the 
ending of partition and estab- 
lishing a united Ireland." No 
wonder Westminster cannot 
read him. 

Are Gerry Adams and his fol- 
lowers now ready to settle for 
something short of the unifica- 
tion of Ireland? Here you may 
read and judge for yourself. 

Christian Tyler 


A ristocratic society in 
the middle ages was 
held together by the 
bond between lord 
and vassal. This bond was per- 
sonally entered into, symboli- 
cally enacted, and rewarded by 
the property or fief, in virtue of 
which the vassal owed military 
service, attendance at court 
and other payments and duties 
to his lord. Political obligation 
and legal right rested on this 
principle, established in the 
9th century and comprehen- 
sively applied to the exercise of 
power at every level of society 
in the 11th and 12th. The entire 
political and legal structure of 
western Europe in the middle 
ages was founded on it. 

So the story runs. The artifi- 
ciality of the idea of a "feudal 
system" has been well recog- 
nised at least since Maitland 
remarked that it was intro- 
duced into England by Sir 
Henry Spelman in 1631, but 
that has not prevented the 
principles associated with it (in 
this non-marxist sense) from 
dominating our conceptions of 
medieval society. The great 
medievalists of every European 
nation - Sir Frank Stenton, 
Heinrich Mitt*? is, Marc Bloch, 
F. L. Ganshof - have written 
their greatest books on its ori- 
gins. nature, operation and 
consequences. 

Susan Reynolds has had the 
poor taste and staggering 


Pulling the plug 
on feudal rights 


endurance to go looking for the 
evidence. Having assiduously 
searched a mountain of the 
most obscure and rebarbative 
texts the middle ages have to 
offer she reports that most of it 
is not there, and that what 
there is fails on examination to 
support the mighty edifice that 
has been built upon it 
A mighty edifice indeed 
there was. but the builders 
were not 9th- mid 10th-century 
magnates appropriating the 
remains of public authority to 
enlarge their own estates and 
fortunes, as the old story had 
it but 12th- and 13th-century 
lawyers and officials eager to 
expand the incomes and extend 
the prerogatives of their royal 
and princely masters over the 
mainly inherited property of 
their free subjects. It was they 
who began to speak of land 
being held of the lord - ulti- 
mately, of the king - and to 
use words like vassus and feo- 
dum, with the overtones of 
honourable subjection and 
obligation from which their 
16th and 17th-century succes- 
sors could abstract a complex 
conceptual system. 


What we have taken for the 
elementary structures of Euro- 
pean society are really the 
products of something more 
likp bureaucracy than feudal- 
ism: products, in fact, of the 
transformation which made 
government something exer- 
cised through the written word 
rather than by force, and there- 
fore placed it In the hands of 
those who knew how to manip- 
ulate words. 

FIEFS AND VASSALS 

by Susan Reynolds 

Oxford University Press £20. 

544 pages 

Twelfth- and 13th-century 
bureaucrats, like other bureau- 
crats, needed precedents for 
what they decided to do. It was 
the lawyers' business to find 
them. In doing so they 
described a world which we 
have mistaken for a real histor- 
ical past Susan Reynolds con- 
ducts her campaign with con- 
siderable learning and 
technical skill across a wide 
stretch of European history. 
Since a great deal of It 


attempts to prove a negative - 
what the sources do not say - 
there is inevitably plenty of 
scope for defenders of the old 
order. 

Nevertheless, the conclu- 
sions of Fiefs and Vassals fit 
very weD with those of much 
recent discussion both of early 
medieval societies and about 
the depth and scale of the 
transformation of Europe after 
the year 1000. Reading the 
sources forward from the 
beginning instead of back- 
wards through 13th-century 
eyes reveals a society much 
less precisely stratified, than it 
then became, in which free 
men inherited and owned land 
quite independently of the 
duties which they owed to the 
king “not because they were 
his vassals, but because they 
were his subjects.” ' 

The real makers of the Euro- 
pean middle ages were the 
scholars, lawyers and adminis- 
trators of the 12th and 13th. 
centuries who, sometimes con- 
sciously and sometimes - not, 
constructed accounts of their 
various pasts to add a veneer 1 
of venerable authority and tra- 
dition to their highly innova- 
tive and aggressive approach 
to the pressing problems of 
learning . few and government. 
Here they have been well and 
truly caught In the act 

RJ. Moore 


Fiction 

More 

than 

simple 

stories 


C ategorising Cormac 
McCarthy as a writer 
of westerns is tike 
calling Herman Mel- 
ville a writer of fishing stories. 
A dark poetic evocation of the 
American. West, The Crossing 
is the second volume of 
McCarthy's The Border Tril- 
ogy. Set In New Mexico and 
northern Mexico, it moves an 
from his previous book, AR the 
Pretty Horses, to the years lead- 
ing up to, and including, the 
second world war. Juxtaposing 
an older world of outlaws, 
vaqueros and Indians with one 
dominated, by cars and aero- 
planes, The Crossing investi- 
gates the loss of innocence and 
the re letfnnship between his- 
tory and narrative. 

" For teenager Billy Barham, 
crossing the border into 
Mexico is to journey into 
unknown territory. Impulsive 
yet Impassive, Billy begins his 
initial sojourn in the middle of 
the ni g ht , pursuing a wolf that 
has attacked local cattle. 
Intending to a ra-ninpany the 
animal to tfafl Mexican moun- 
tains, it is a year and a lifetime 
before B31y returns to New 
Mexico.. Hie arrives to find his 
family have been murdered 
and their horses stolen. Only 
Boyd, Us younger brother, sur- 
vives. 

Here everyone - Indians, 
revolutionaries, bandits and 
gypsies - has a story. Some are 
true, hot most are fiction. As 
BiHy is told, “things separate 
from their story have no mean- 
ing.” -- 




RUSHING TO . 
PARADISE 
J.G. Ballard 

Flamingo £14.99. 239 pages 


EVERYTHING AND 
1 • : MORE ii 

Geoff Nicholson - 

GoBancz £15.99, 251 pages 

It would be equally mislead- 
ing to describe J.G. Ballard as 
simply a science fiction writer. 
More concerned with the imag- 
ination than science, Ballard's 
writing can be mesmerising 
and poetic. He is sometimes 
almost perversely radical but 
he can also be oddly primitive 

A return to form, though a 
long way. from Ballard’s best 
work, such as ffi gh Rise and 
Crash, Hushing to Paradise 
focuses on campaigner Dr Bar- 
bara Rafferty and her attempt 
to save an albatross population 
threatened by tide construction 
of an airstrip on a small 
French Pacific island. 

Eventually Rafferty, appalled 
by the commerciality of the 
venture, severs links with the 
outside world, and declares the 
island a sanctuary for women: 
“The biggest problem the 
world faces is not that there 
are too few whales or pandas, 
but too many men..." In this 
fiction, mm are victims rather 
than oppressors. Packaged 
within, a voyeuristic narrative, 
Ballard’s sexual paranoia 
makes Rushing to Paradise 
compulsive reading. 

The work of British writer 
Geoff Nicholson could be cat- 
egorised as speculative satire. 
Locating cultural fault-lines, 
Everything and More - the slo- 
gan of EEadon Brothers depart- 
ment store - examines the 
relationship between work, 
consumerism and terrorism 
and takes place in a gargan- 
tuan b unding with a surreal 
facade, secret rooms and hid- 
den pass ag es. With its non 
unionised staff intent on sabo- 
tage, loyal employee. Vita Car- 
lisle holds her reclusive and 
randy employer,. Arnold, hos- 


Mean while,- protagonist 
Charlie Mayhew, reluctantly 
working as a furniture porter, 
searches for sm art form apd 
finds signification in objects 
and linguistic tics, such as the 
term menswean “Did it mean 
"men’s ware’, as in hardware, 
or was it a portman te au word 
taffing the public that t ^ w * n in 
those areas were given to bad 
language?" When an author 
appears on the wrong day for a 
booksigning, the staff ask ques- 
tions worthy of post-modern 
deconstructiwrists. 

Influenced by the literary 
extravagances of Hoysman and 
George Perec, Everything and 
More might, in comparison, be 
lightweight, but ft is subver- 
sive enough to parody its voy- 
euristic tendencies. Combining 
speculation mid accusation, 
Nicholson. "• no less than 
McCarthy and Ballard, delights 
in defying categories. 


I - T 

•I •• : ' 


Woody Hoot 


y])\ 


t 




FINANCIAL times WEEKEND SEPTEMBER 17/SEPTEMBER 18 1994 


WEEKEND FT XV 


SPORT 


i 


t is not often you play a 

23TE °n holiday and then 
get the chance a couple ol 
r~r tatet to ask the archi- 
ted. what be thought he was doing. 

is Situated ou tS 
beautiful Hawanau island of Kauai. 
Hanalel Bay curves behind it The 
imposing Mt Makana, or Bali 
“! t 1 was known in South Pacific. 
which was filmed there, rises 

, ,^ rince course is usually said 
to be the best in Hawaii, and it is 
not hard to see why. There are 
some breathtaking holes. The par 
four first is surrounded by the 
Anini stream. The par five second 
requires a carry of at least 100 
yards across a hazard. The fourth 
Ms water all down the right haryj 
side. They are the easy holes. 

By the time you have reached the 
I2tti yon are to a tropical Jungle 
and on no account should your 
drive stray from the straight and 
narrow by more than 20 yards. The 
last three holes are among the 


Golf 

Great courses: a 


Resorts and designers are setting ordinary players too much 


hardest ft was. unquestionably, 
one of most daunting, and exhila- 
rating courses that I have ever 
played. And that was the problem. 

I am a seven hmy firpp player, 
who once played off one, and by the 
end it bad proved too tough for me, 
even on a day when 1 had played 
reasonably well. Now it is not 
being immodest to say that if this 
course was too tough for me, then 
90 per cent of the people who ven- 
ture on to it will not be able to 
cope. 

When I played, the course 
became clogged with people hitting 


shots into bushes or streams. As 
they lost balls and spent ages in 
the process, the better players lost 
patience and the result was a mas- 
terpiece of a Course that hardly 
anyone enjoyed playing. Two of the 
three people with whom I was 
playing abandoned their rounds in 
spite of having paid the high fee. 

Such difficulties may be encoun- 
tered on many of the world's great 
golf courses. They result from the 
owners’ detire to create a notable 
golf course, which will attract 
favourable press comment and so 
bring in fee-paying cus to me r s. But 


putting a 28 handicap golfer on the 
Prince course is like asking an 
apprentice to play for Manchester 
United’s first team. 

One of the great things about golf 
is supposed to be that anyone can 
walk in the footsteps of the top 
players, and play the shots from 
where they played them, and mar- 
vel at their skills. But half these 
courses are either very private or 
very expensive; and the other half 
are so full of golfers without the 
skills to play them that the round 
becomes very long and tedious. So, 
when I asked the architect of the 


great curse 

of a challenge, writes Derek Lawrenson 


Prince course, Robert Trent Jones 
jnr, why he made it so difficult, I 
knew what he would offer as an 
opening gambit: “Well, first you 
have to remember that I design 
courses to a client's instructions. 
Hie Princeville resort, where the 
Prince course is situated, already 
has one, what yon might term, 
playable golf course, and what they 
wanted was an alternative, more 
challenging layout. Which is what I 

built" 

Jones is an amiable, intelligent 
man who loves golf and has 
designed many such courses. He 


was aware of the question's impli- 
cation: "I agree, it is a great prob- 
lem," he said. 

Why not introduce a handicap 
limit: limiting the more challeng- 
ing courses to players with a 
proven handicap of 18? 

“In America? The owners would 
be swamped with lawsuits before 
the first day was out But I think 
there Is a way of alleviating the 
difficulty. The solution would be to 
make sure that for the first couple 
of hours iff each day, the better 
players get a chance to go out, and 
so set the pace of play for the day." 


"But the trouble with many 
resort courses is that they need the 
money from the green fees, and 
that is of more importance to them 
than any question about the pace of 
play.” 

This, to a great extent, is what 
happened in Spain in the late 
1980s, as the courses became 
flooded with people and the prices 
went up and many British golfers, 
tired of five hour rounds and exor- 
bitant prices, went in search of new 
pastures, such as South Carolina 
and Florida. Spain has tried bard to 
make up for past mistakes. 

What about forward tees, you 
might ask? Surely the more modest 
players could play of! these tees 
and so play a shorter course? True, 
but it still would not help them 
overcome the intimidating factor of 
trying to carry water hazards or 
ravines, or drive down an avenue 
with jungle on either side. 

As Jones said, the game has a 
problem. Suggestions, please, to all 
the world's great resort courses. 



Man (n the middle Jim Fleming, refereeing last season’s international between France and Ireland dm room 


Rugby Union/Tom Fort 

Outnumbered by 30 to one 


C omplaining about the 
umpire or referee is one of 
sport's most enduring tra- 
ditions. In whatever game, 
at whatever level, the man 
charged with the duty of judgment 
finds himself the scapegoat for every- 
one rise's rage and disappointment. 

On the village green, the opening bat 
stares with theatrical disbelief at the 
man in the white coat who has had the 
nerve to give him out Ibw, then stalks 
off. muttering and expostulating. I have 
seen a ref who disallowed a goal in a 
Slough Industrial League Division 
Three soccer match knocked to the 
ground for his troubles. At Wimbledon, 
a tennis official in a panama hat is 
expected to smile politely on his stool 
while some oafish super-ego swears at 
him over a foot fault. 

But in no game. I would suggest, is 
the tot of the referee more difficult than 
in rugby union. He has to put up with 
ail the abuse and unpleasantness which 
law enforcement provokes in any game. 
But in addition, the interpretation of 
laws and the detection of infringement 
is particularly difficult in rugby. 


f know because I have done it, twice. 
Of the second occasion I can remember 
little, except that it was disfigured by 
one of those ludicrous brawls which are 
a time-honoured characteristic of coarse 
rugby. 1 brought it to an end - rather 
brilliantly, I thought by lifting one of 
the protagonists off the ground by his 
collar. 

The first, though, was a fiasco from 
start to finish. I was somewhat handi- 
capped because I bad left my spectacles 
in the changing room, which meant 
that everything happening more than 
20 yards from me was little more than a 
blur. But the chief problem was that, 
even when 1 was on hand for ruck or 
maul or scrum, I could not work out 
what was going on. 

Amid the churning mass of bodies, 
the ball was sometimes visible, some- 
times not At any moment it seemed 
that almost everyone was committing 
some kind of offence. This presented me 
with a choice between non-stop whistle- 
blowing - necessitating an instant 
choice of whose illegality was the gros- 
sest - and quiescent inactivity. 

1 varied erratically between these two 


courses, and thus fed into disrepute. 
Whatever I did was wrong, and the 
entire match unfolded to the accompa- 
niment of an incessant chorus of com- 
plaint Bereft of authority, 1 became dis- 
illusioned and a sad hate-figure on a 
dank Sunday afternoon. At the end, my 
own team secured ignoble victory with 
a try which came - so my own chums 
cheerfully confided to me afterwards - 
from a pass which was a good yard-and- 
a-half forward. 

I did not know the rules, of course. 
Nor was I in a minority at the lowly 
level at which I played. We may have 
had a vague apprehension of the guid- 
ing principles which informed the code. 
But of the detail we were appallingly 
ignorant And even when we did know 
a particular rule, we bad no inhibition 
about breaking it, nor about protesting 
long and loud if we were detected. 

Now the laws are even more compli- 
cated than they were then, and the 
game is afflicted more than ever by thi« 
combination of ignorance and wilful 
lawlessness. And who gets the blame 
for the resulting shambles? Is it the 
players, who trample on the rules, or 


the lawmakers who dreamt them up? 
No, it is the man charged with enforc- 
ing them. 

Thus we had the preposterous specta- 
cle of the players from Bath and Wasps 
excoriating the referee for ruining what 
should have been one of the showpieces 
of the last league season. His crime was 
that he had had the nerve to whistle up 
for a mere 48 out of the uncountable 
offences committed during 80 minutes 
of ill-natured anarchy. 

Pity the poor ref. It is not his fault 
that the game should have sunk into a 
grey swamp of well-intentioned but 
unenforceable regulations; nor that 
players at all levels should have become 
so expert in exploiting the vulnerability 
of his position. The miracle is that 
rugby union should still be capable of 
producing moments of clean, incompa- 
rable exhilaration. The almost hysteri- 
cal ecstasy which greeted Underwood’s 
try against Wales, Geoghehan's against 
England. Quinnell's against Prance in 
the last batch of home internationals, is 
dire evidence of their rarity and the 
unhappy pass this great game has got 
itself into. 


Soccer 

Students at the feet 
of the masters 


O n a dust-red football 
pitch an hour from 
Brazil’s largest city, 
Sao Paulo, the daily 
training regime begins 
promptly at 10am. It follows a 
familiar pattern of running, 
passing and ball control prac- 
tice. This is a scene played out 
thousands of times throughout 
the country of the World Cup 
winners. It is a scene that 
would barely catch the atten- 
tion of a passing villager, 
tempted to break the monot- 
ony of the day. 

But this is no ordinary prac- 
tice session, and certainly no 
ordinary team. The trainer's 
barked orders induce uncom- 
fortable giggles among local 
children who have come to 
watch. The players, all teenag- 
ers, have the same taut and 
agile bodies of Brazilian foot- 
ballers. But their faces are 
very different 

Jin Zhengmin, manager of 
the Chinese National Youth 
Football Team, steps forward 
to explain why he, two train- 
ers, a teacher and China's 22 
most promising young football- 
ers are living on the other side 
of the world in Brazil. 

“We are preparing for the 
2000 Olympics. These players 
will return to China In five 
years. We have other pro- 
grammes under way in China, 
but we hope these players will 
be the best," said Jin, who 
played for his country in the 
1960s and was a big fan of 
Bobby Chariton. 

China is a newcomer to the 
footballing tradition. The game 
only recently became popular 
through television and the 1986 
and 1990 World Cups. In some 
regions the former England 
captain Gary Lineker overtook 
Margaret Thatcher as the most 
famous Briton. 

Impressed by this growing 
popularity, and football’s suit- 
ability as a cheap team sport 
for developing countries, 
bureaucrats in Beijing agreed 
the country's football Infra- 
structure needed an overhaul. 
China was making a concerted 


push to eater the top levels of 
international sport, a cam- 
paign which led to outstanding 
results - as well as accusations 
of foul play - in swimming and 
athletics. 

Two years ago. when China 
was still favourite to host the 
2000 Olympics ahead of Syd- 
ney. a nationwide champion- 
ship was held to select the 
country’s 60 most promising 
footballers. Following further 
trials in Beijing, the best pros- 
pects. aged between 14 and 17, 
were sent to Brazil to spend 
five years learning the game. 

They arrived last November 


Angus Foster 
watches a familiar 
scene with an 
unexpected twist 


and the team is playing in 
championships and cups 
around the country and may 
soon hire a Brazilian coach. 
Jin also hopes that his most 
promising players will join 
local clubs, although Brazil's 
rules on employing foreigners 
are tight 

According to Li Fei, one of 
the squad’s two trainers and a 
former professional player in 
Germany, China still has much 
to do before its football reaches 
international standards. "Com- 
pared to other countries, these 
boys' level is poor. But for 
China, it is very high,” be said. 

China supports the pro- 
gramme but all finance has 
been provided by a drink com- 
pany from China's southern 
province of Guangdong. 

Brazil seems an odd place to 
send China's sporting prodi- 
gies. The country's football is 
unquestionably often brilliant 
Yet it is equally often erratic, 
and stresses an individualism 
which would shock many a 
Chinese mandarin. 

Jin. a likeable, earnest man, 
explains: “The B razilian phy- 
sique is the same as the Chi- 


nese, both strong and agile but 
slight. This is better for our 
young people who have diffi- 
culty playing against young 
Europeans, who are bigger." 

The young Chinese are 
quickly adopting Br azilian hab- 
its. One training exercise 
involved practising the back 
flick perfected by the retired 
star Socrates. At the end of the 
session, the players huddled 
arm in arm singing a football 
song learned from Sao Paulo 
football club, and shouting 
“China” in Portuguese. 

The squad’s indoor training 
school, a wooden barn, was 
transformed into a party hall 
for the Carnival celebrations. 
According to Jin, the squad is 
employing a Brazilian to teach 
it to dance the samba. 

Some of the players say they 
miss Chinese food, but Jin is 
adamant. “Brazil's food is bet- 
ter for football training 
because of the high, meat and 
carbohydrate content,” he said. 

Asian habits rule when it 
comes to punishment Culprits 
run between two lines of play- 
ers and receive violent slaps on 
the back from everyone. 

Following a two-hour ses- 
sion, the boys return to their 
training camp in a bus hired 
from the local municipal coun- 
cil The Olympic rings have 
been painted on the dormitory 
building’s wall There is also a 
huge Chinese flag and map in 
the dining room, and a video 
recorder and some popular Chi- 
nese films. 

Otherwise, there seems little 
to occupy China's future foot- 
balling stars. Many of their 
countrymen would no doubt 
envy them and their bright 
sporting futures. But five years 
seems a long time to spend on 
a farm in the middle of the 
Brazilian countryside. 

One of the boys, with short 
hair and bad acne, seemed 
unconcerned. “There's many 
things to do to relax. We can 
play football, sometimes 
there's football on TV and 
there's lots of videos of football 
matches," he said. 


Motoring 

Saab increases 
the cylinder count 

Stuart Marshall tests a new range of executive 
models designed to satisfy the engine snobs 

I n the business car 
pecking order. Saab has 
always occupied a niche 
somewhere above Ford 
and Vauxhall (Opel to main- 
land Europeans) but just below 
BMW and Mercedes. Saab’s 
niche-fellows have been sporty, 
individual cars such as Alfa 
Romeo and Lancia. 

So, why has a significant 
minority of business users in 
Britain, with freedom to 
choose any car. gone for 
Saabs? Perhaps because they 
are so enjoyable to drive that 
you feel the company's manag- 
ers must be enthusiastic 
motorists, not corporate bean- 
counters obsessed with cutting 
costs and raising margins. 

Second. Saabs are produced 
by an offshoot of Sweden’s 
only aircraft-maker. Knowing 
this evokes the right responses 
on technical merit, safety, 
durability and environmental 
acceptability. And. third. 

Saab's badge has never been 
put at a disadvantage by being 
seen on small, cheap cars such 
as Fiestas and Corsas. 

As a tow volume car-maker - 
under I0Q.IW0 a year - Saab 
could never afford the luxury 
of a range of engines. For two 
decades, it had just one; a four- 
cylinder conceived in the early 



•>. * 


. f /-.a r/irv;’; 

Saab’s latest 0000, the Griffin luxury saloon; a 3.0-Stra VS for user-choosers who coixtt the number of cylinders 

Aero, which more than 
matches the V6*s pulling power 
{torque} and, on paper, offers 
slightly better fuel economy. 

Yet, when 1 drove them in 
northern France last week, I 
thought the V6 9000s, if a mite 
less fiery, had all the perfor- 
mance for which any business 
motorist could reasonably ask. 
Their ride is excellent, their 
handling nimble and reassur- 
ingly secure. Automatic trans- 
mission is standard. 

At £31,995 list, the 9000 Grif- 
fin - and, to a lesser extent, 
the £29,995 9000CSE V6 - will 
far*- fierce competition, includ- 
ing the Vauxhall Omega Elite 
(£27,385). This has the same 
power train and similarly lav- 
ish equipment 
Saab, however, is banking on 
charisma and exclusiveness to 
persuade buyers to get behind 
the wheel of a Griffin rather 
than the poshest Omega or 
Ford Scorpio. 


by Triumph at Coventry. 
• English midlands. 
t the years, it has teen 
fied extensively and 
-charged, fitted with 
y sophisticated ignition 
ms and, ultimately, 
fed to a 2^-litre with twin 
ring shafts. 

ring a turbo-charged and 
moled Saab 900 or 9000 
[ways been one of motor- 
better experiences. The 
exude integrity; their 
es are flexible at tow 
s, exceedingly vigorous 
needed, and run 
hly at all times. But they 
only four cylinders. Many 


status-conscious business driv- 
ers dream of at least eight cyl- 
inders, althoug h most have to 
settle for six. 

Now. they will no longer 
need to reject a Saab 9000 
because it has too few cylin- 
ders. Two flagship models will 
be in the showrooms next 
month powered by a three-litre 
V0. (I have not forgotten the 
900 VS, which has been around 
for some months. What I am 
talking about are big cars for 
senior managers.) 

Heart of the latest, range- 
topping Saab 9000 Griffis 
saloon, and the slightly less 
elaborate 9000CSE VS fivedoor, 


Is a General Motors engine. 
This 215 horsepower unit is 
also used in the Vauxhall 
(Opel) Omega, just as the Saab 
90Q's 2.5-litre, 170hp V6 is 
shared with both Omega and 
up-market versions of Vaux- 
haH (Opel) models such as the 
Cavalier (Vectra) and Calibre. 


GM rode to Saab's financial 
rescue three years ago but is 
keeping the Saab marque quite 
separate from its mass sellers. 

Smaller capacity, four-cylin- 
der 9000s continue to be avail- 
able. Most potent of them all is 
still the turbo-charged and 
inter-cooled 2.3-litre, 230hp 


Get tough on uninsured drivers 


M~ on than im British motor- 
/I ists are known not to tax or 
if I insure their cars. They 
W weigh the slight risk of 
caught against the money they save 
pfVnn breaking tite law makes good 
rial sense. 

t October in this column, I suggested 
tougher law enforcement was long 
Ine. tf driving uninsured - or, worse, 
aired and disqualified - were the 
lsly anti-social offences the courts 
thought them to be, perhaps it was 
in seize and sell fimiltv drivers' cars. 


I lost count of the number of readers 
who wrote in support Since then, the 
government has announced administra- 
tive action to chase motorists who do not 
tax (and, by inference, do not insure) 
their cars. 

The problem persists, though. This 
week, the Guild of Experienced Motorists 
echoed my thoughts. It asked the govern- 
ment to introduce legislation giving 
courts the power to confiscate uninsured 
vehicles. 

John Newman, the guild’s chairman 
and chief executive, noted that the mas- 


mum penalty for driving uninsured was 
£5,000 - but that the fine recommended 
by the Magistrates' Association was only 
£540. It seemed a small price for a crime 
that could leave innocent victims disabled 
with little chance of compensation. 

Newman said the guild believed confis- 
cating the vehicle and J ailing the driver 
would be a severe deterrent It also 
wanted cars to carry an insurance disc 
alongside their tax disc. I am sure that 
most readers of this column would agree. 

SM 


FT Expedition /Amie Wilson 

Worn tracks 


Amie Wilson and Lucy Dicker 
are trying to ski every day of 
1994 on a round-the-world trip 

A fter 250 days (500 ver- 
tical miles) of skiing, 
the toll is beginning to 
tell - on both skis and skins, if 
not the inner us. “Your skis 
are jnst about blown out, 
mate,” says Alex Herbert at 
Fleet’s ski repair shop in 
Thredbo, one of the leading 
resorts in the Australian Alps 
of southern New South Wales. 

Thankfully, a new pair of 
Salomons is winging its way 
towards me, courtesy of Snow 
+ Rock and friends who are 
paying a flying visit to ski 
with us. They are also bearing 
all kinds of potions from Glar- 
ing to restore our faces, seared 
by the scorching NSW sun. 

At nearby Pqrisher Valley, 
they - like many resorts - 
keep a list of daft questions 
people ask. “What time does 
the chairlift go?" is one. “Will 
ft snow at night or daring the 
day?" is another. 

Peris her got its name when 
two cattlemen, trying to round 
up their herd before winter set 
in, rode into a blizzard. One of 
them wrote later: “We rode 
out to the west face of the 
mountain to look down along 
the Snowy River to see if the 
cattle were there. 

"The frozen snow was beat- 
ing into onr faces, Jim Spen- 
cer's beard was white with 
snow and turning to me he 
said: This is a perish er.’” 

In those days, snow was bad 
news; but now people some- 
times travel for days jnst to 


see it. Dennis Bnllen - origi- 
nally from Barnet London - 
drove for three days from Bris- 
bane to reach Falls Creek in 
Victoria and enjoyed skiing in 
the rain so much that he Is 
determined to return to Max 
and Rosemary A) then's Feath- 
er-top Lodge next winter. 

Bnllen 's wife Margaret, who 
had never semi snow before, 
was less enthusiastic. “The 
snow was wet and cold.” she 
said. “I was hoping it would 
be a bit fluffier." 

Max Aitken is another 
Englishman who only took up 
skiing once he had emigrated 
to Australia. He broke his leg 
playing ntgby for Widnes, 
came to Australia to recuper- 
ate. married, and is now a 
part-time ski instructor. 

Driving long distances is not 
uncommon in Australia. One 
skier at the Barrakee Lodge, 
Perisher, knows two farmers 
from Nelson's Plains (a couple 
of buildings 18km north-west 
of Newcastle in NSW) who 
wanted to run-in their new car 
and drove to Perth, 3,000km 
away, for a hamburger. It took 
them four days. 


MOTORS 


U.S. CARS AT O.S, PRICES AbsduM 
largest selection end lonesi prices 
0jera4ecd on any new or used car. truck, 
end Harley Davidson. ATTN: Dave 
TELEfFAX USA 013 B44 0832. 

HAS SOP LEXUS OtfO*S the LS4Q0 Ft 
ES1 1.00 wn and G5300 Fr £300.00 pin. 
Demonstrations *u your horns or office 
Tet 08 14500005 far detafa 
JEHCA U>nd 3 rf 3 Large* Dealer far LEXUS 
Tetotn aaieaa 


WEEKEND FT 


FINANCIAL TIMES WEEKEND SEPTEMBER 


17/SEPTEMBER 


IS IW 


PROPERTY 


Auctions: the 
simple way to 
buy and sell 

They are quick , efficient , and offer freedom from 
gazumping. Gerald Cadogan explains what to do 

later, the place is yours. 

Sellers usually pay around 
2J5 per cent, plus advertising 
charges. For this, they get far 
greater publicity than almost 
any private treaty sale. 

Property auctions split into 
two types. First, there are 
small country sales of a single 
property or group of proper- 
ties. often held in the local pub 
or village hall. 

Then, there are large sales of 
many properties, held at hotels 
in London and other centres. 
These provide potential buyers 
with up to 700 homes a month 
from which to choose, says 
Gary Murphy of Allsop, a lead- 
ing auction firm which sold 
1,574 residential properties (93 
per cent of those offered) for 
£61m in 1993. About GO to 70 

per cent are repossessions. 

Murphy points to a growing 
trend for auctions to be used as 
a first resort rather than the 
last, as they used to be until 
quite recently. Part of the rea- 
son undoubtedly is that buyers 
are sure of a fixed price - and 
sellers of getting their money 
without purchasers pulling out 
because the chain of which 
they are part breaks down. 

I f you are selling, you 
must decide with the 
auctioneer an a reserve 
price. This will not be 
more than the published 
guide price, which is intended 
as a realistic estimate and is 
often exceeded, anyway. 

The seller must also give the 
auctioneer copies of all the rel- 
evant papers. For a £10 fee, 
these can he passed to a poten- 
tial buyer or his solicitor, 
together with any special con- 
ditions of sale. 

It is important to remember 


T he property auc- 
tioneer issues his 
challenge: “It's 
against you. sir." 
What does he 
mean? And what is "sir” to do? 

In feet, the auctioneer is say- 
ing that another bid has 
topped yours - so you must 
decide whether to carry on bid- 
ding or forego the property you 
are seeking. At such times, the 
adrenalin surges - but you 
need to stay cool. 

If you like brinkmanship, 
you could wait until he says: 
"Going for the first time, going 
for the second time..." You 
then slip in a bid just before he 
has time to say: “Going for the 
third time, and sold" (with a 
bang of the hammer). Some- 
times. this ploy offers the 
chance for a bargain: after all, 
you would not expect frivolous 
bidders at this stage. 


Sometimes, though, it never 
goes to the third call; the auc- 
tioneer stops to say: “I am 
sorry. The property has not 
met the reserve." If you remain 
interested, that is the moment 
to approach the saleroom man- 
agement and try to arrange a 
private deaL 

Auctions are the quick and 
efficient way of buying and 
selling property, provided you 
know what you want and can 
afford. You have the security 
of knowing there is no gazump- 
ing - that is, acceptance of a 
higher offer from someone else 
after the deal has been agreed 
- once the hammer is down. 

A saleroom assistant takes 
your name and a cheque for 10 
per cent of the price (which the 
auction house win present next 
morning for special clearance}, 
and you exchange contracts 
before you leave. Just 28 days 



Derelict, but sold for £137,000: Seven Points at Goodwood, West Sussex 



For sale .. .a farmhouse with two dder orchards near Taunton, Somerset; to be auctioned on October 27. (For detaSs, see box) 


that all parties must do their 
legal homework, as auction 
sales are binding contracts and 
are not offers subject to con- 
tract and survey, as in a pri- 
vate treaty sale. 

Once you have found some- 
thing you like, decide if you 
want a survey done (this 
should produce an independent 
valuation). Then, contact your 
mortgage provider and tell 
your solicitor, who might want 


to get in touch with the ven- 
dor's lawyer. Your financing, 
and everything else, must be in 
order before you go into the 
saleroom. 

If you do not want to bid 
before the sale, check carefully 
- and often - that the property 
has not been withdrawn or 
"sold prior”; auctioneers will 
provide an addendum that 
details any last-minute 
changes. On the day itself, 


arrive in good time. Listen to 
what the auctioneer says In his 
general remarks - they may 
affect the lot in which you are 
interested. 

If you can. take your solici- 
tor or surveyor to bid for yon: 
they will not be carried away. 
If you bid yourself, pay atten- 
tion and keep your limit firmly 
in mind. Do not rush to enter 
the bidding; it can help you if 
it is slow. 


(There Is an alternative ploy 
to which I once fell victim 
when trying to bid for a semi- 
derelict farmhouse. The survey 
had been done and I had 
decided on what seemed a sen- 
sible limit of £30,000. 

As the auctioneer looked for 
starting bids, a voice from the 
back boomed “£30,000” - and 
blew away any competition on 
the spot) 

finally, never bid for a prop- 


erty you have not seen person- 
ally, as some dealers do. 

Country auctions are excel- 
lent for properties that agents 
find hard to assess (which 
often means they are In need 
of considerable attention}. This 
summer, for instance. Carter 
Jonas sold a Georgian old rec- 
tory at Moulsoe in Bucking- 
hamshire for £220,000 (guide 
price: £150.000). 

The property was In a terri- 
ble state - its last serious rede- 
coration was in the 1920s. But 
Margaret Whitmore, of Carter 
Jonas, explains: “We held the 
sale in front of the house. 
Everybody knew what was on 
offer." 

Meanwhile, more than 100 
people attended Henry Adams' 
auction (in Goodwood House) 
of the derelict Seven Points on 
the Goodwood estate in West 
Sussex. With a guide price of 
£125.000, it went for £137,000. 


i Some future large auctions; ABsop ; . “• : Ess«& September 24v Ktog’s Lynn, V • Keyfravenwtth aTP&to priconf - 
(071-494 3886), October 24, London; Nortblk,.and September 2Z, Redraft, '• * EZSQ.dOO, in the pubpaxt door; and on , 

Edwin Evans #71.-228 5364), - / Comwa$ Sfickley& Kent {071-284 : .. v j;...Octoher 2Z Strut* A Parker in Exeter 
September^ London; Foxof “V. : .. ; .,$3302-215631} offoisa formhonse. two 

Britton (0273^321300), October 6* • • W*nfcworm(D8t^ .(xttfageSyfero •• 

Hove; aid F^ qtSbtdhampfon . Srtoodon. Cowtry auctiof^on ; onwards at Hatee nearTaunton iri the 

(0703-338066), October 27, .' s Ortoher1^Ra«d Jatd®onof : v ' , -‘C 

■ Southampton; Harabro Countrywide ' • • Eymmgton, Hampshire (0690^674417^ over £1 QflBOtbf otm ordhairi to over' ■ i 

(0245-344133^ Septe m ber 22, Grays;, • - ^ 7GM>0Ct' for ^her,-fenrnR|c^ 


COUNTRY PROPERTY 


Bidwells 



PERTHSHIRE - FORTINGALL 

THE GLENEYON ESTATE 

Abcrtcldy 8 mile* ■ ftixh 45 mifc* Edinburgh (Airport) 90 mild 
A rare opportunity to acquire an outstanding 
agricultural and spotting estate in Highland Perth 
Stag - Salmon - Grouse - “The Macnab" 
Period mansion house, farmhouse, 3 dwellings. 

220 acres of grade 3 arable Land, quota lor 105 cowt 
and 1.350 etvw. 171 acres of forestry. 

35 flap. 136 brace of grouse walked up. 

25 salmon on the liivcr Lyon, roe. pheasant, duck shooting. 
Hydro-electric scheme producing substantial income 
In all about 6,235 acres 
For Sale as a Whole 

Joint idling Jgeub Garden Haig. Liunsran Mace. Edinburgh EH3 9JN 


0738 630666 


t ATHOLS PLACE • PERTH • PHI SNE 

tHIH INVERNESS LONDON CAMBRIDOE 


John German 


I Lit IIMLLD STRUT. BURTON ON TRKNT. STAFFS. Fn (02MI3I78M 
LOT i tin Ik- ULHiuOMra ut Ac EkoIiih uf S* Gihrjnl Thanjron Deceased and Other* 

THE CVUAND HALL ESTATE 
near BRAILS FORD, DERBYSHIRE 

AMwrnr S miles DeHy IPmtla 
A enuoy Ime in Ac Go 



fyte ucciCTmga 
ti ofrous run! local km M the DabyiUis Daks, m^iho 
■illl 1 ■rH cqn^pol compact Em Encta t d porch. 
Rcrepuua IUL 4 Reception Ruum. EiEmnr 
Oumaljc Office*. 0 Bedroom*. 3 Bathrooms. Self 
ctmamnl llaL DrUghhl Infernal gnricra. Lodps 
■Jmk- II Ltoed Conch 1 kw. ciTc—ivc range i-f (am 
building' Pkstmc ud anidc land. 


LOT 1 ,B jl1 lei Acres, tivcfedu spxtnn rlpM imc m alpaioB a 
Fur Sale h» Pnvatr Tnafy 


HOLIDAY HOME 
IN CORNWALL 

Kith ianxne.'iBVMtment op porl Daily 

PTOMlpf ikvclupmcm of t> detached lumry 
iHURt-t in pusahvl premier Luc boteL 

MoauenukC anti ummu mjIIt nvuugcJ. 

Price L«WU. 

Dtulh from: Camonuoad Mutsr llotrl 
Kail Lflor. Cnrawafl TcL KU 2A3TC9 


BEDfOnnSMRe Ml Juncuon 0 ■ *--> mBn 
Inugmaltvo turn convorwon altering 
cruanm one smea Z3 aero paddock. PHoo 
OMdcCieWJOO FAULKNERS OSCa^BSISh 


SOUTH HERTFORDSHIRE Jet 9 - Ml ■ B 
MHw. Central London 35 Mites. 17th 
Century Grade II Listed manor Houm In 
unspoilt countryside with 373 sows ol 
LvnSnnd, cottages and tmfcSnga. For safe) 
by pitvate treaty. FaHnors. Kngs Langley 
103231 268168 


HERTFOROGHME M25 5 nda& IShGamuy 
Houao fated Grade 2. 4 raespnon roo ms , 
garden room, 7 Bedrooms. 3 bathrooms. 
2 bedroom ed coltago. Gardens and 
paddodL FAULMCRS 0033 268106 


FARMS 



ESHER * SURREY 

£194,580 LEASEBO LD/FREEHOLD 

Maptificcnl I nary Cm Hoot apanr a eru . 
Conversion of ■ country bouse. 3 doable 
1 bedrooms, large jaenzzi bathroom, 
1 separate shower, cloakroom, large 
Idldam/breakEasl room c oeapteiely lined, 
! 28fi lounge /dining room wjih orlgliul 
pUscr collings. oak panelling, exceptional 
firrpfaoe, private garden, garage. Waterloo 
23 minutes. 

VIr wing: Open Horae Sal/Stm 17/lSth 
September. 10 rtfect ■ Jo'doct 

JAMh.5 FANCY 

29 Fdgi Street Eabex. Surrey KTI0 WN 
IbL (03721-448636 Fat 0372 470079 


ARUNDEL, WEST SUSSEX 

A Residential Development Site with detailed planning consent for 
13 booses and 16 flats, part with river frontage. 

Subject to a Section 106 Agreement 
About 1-35 Acres 
For Sale by Tender 

Closing Date: 12 noon Thursday 3rd November 1994 
LONDON OFFICE: 071-408 1010 
ARUNDEL OFFICE: 0903 882213 


John Davies $j 

Chaiu-ird Suricynr* 

NORWICH 

MANAGREEN HALL FARM 

RESIDENTIAL ARABLE FARM 
WITH DEVELOPMENT POTENTIAL 

ABOUT 353 ACRES 

FOR SALE BY PRIVATE TREATY AS A WHOLE OR IN 13 LOTS 


RETIREMENT 


A HISTORY LESSON 

What do Dick Turpin. Oliver Cromwell and General Gordon have in 
common? They are all associated with sites chosen for our retirement 
schemes. At English Courtyard, you'll be on famous so EL But if you 
drought our historical interest ended there, you'd be mtstalmn Restoration 
and conversion work has been carried out on a Dumber of listed buildings, 
the oldest of which dates from the I4ih Century. While maintaining the 
character of such buddings, English Courtyard ensures that the Highrro 
standards of workmanship are maintained, from the energy efficient 
heating system, to the kitchen layout designed for maximum convenience. 
Prices from £95.00(1 to 235,000. To find out more about our properties in 
Middx, Somerset, Wilts. Bucks and Oxon. please ring us for a brochure. 


Tel: 0963 885900 Fax: 0963 885557 

TW tL-Jatu Onto. CWnuati 1 tcusu. t.L Owainglmn. Thcriotd. Norfolk HP25 bL> 


8 Holland Street London W8 4LT 
FREEFONE 0800 220858 


Bidwells 


jCHABTEBEP SUBVEVO Bs| 



ESSEX - Near SAFFRON WALDEN 

Saffron Walden 2 mils - Cambridge U> mi to - London 55 mile* 
Privately located residential/ agricultural/ sporting property 

481 acres 

Moated Grade I Listed 7 bedroom farmhouse requiring modernisation. 
Scini -detached cottage. Range of form buildings. 

For Sale as a Whole or in 9 Lore 

0223 84I84I 

TnauPiHaroN nano Cambridge chz *10 

CAMBWIDOE IPBWICM NORWICH 8MHY St EOUUMOS LOMOOM PEHtH | 


DEVELOPMENT LAND 
Thackley, Nr. Bradford, West Yorkshire 

IMPORTANT RESIDENTIAL BUILDING SITE 

Approx. 53.74 acres with main road frontage 
(including landscaping and woodland areas) 
Located in good residential area with fine open views 

FOR SALE BY FORMAL TENDER 
Closing Date Friday, 4th November 1994 
Sole Agents: Dane, Son & Hartley 
1-5 Tbe Grove, nkky LS29 9HS 
Telephone: 0943 <00655 Free 0943 S16086 


White House Farmhouse 
Nr Ley burn. 

North Yorkshire 

17th Century Grade D Listed 
farmhouse with 1 acre of grounds and 
magnific ent views over the Dales. 

2 reception roams, 4 bedrooms, 
kitchen, diiry and bathroom. 
Ontbmldiiigp and groonds. Addhxmal 
25 acres if required. In excess of 

noaooa 

GEORGE F WHITE 
Tel: 0677 425301 


SHERE 

WOODS 

Guildford, Surrey. 
643 acres. Mixed aged 
productive broad leaves and 
conifers. Sporting rights 
included. 3 lots from 
£140,000 to £2*5,000. 
Particulars and a list of UK 
woods for sale from: 

John Clegg & Co 

Church St, Chesham, Bocks. 
Tel: 0494784711 


HOPE COVE, Sateambe - specially 
caiwmreskmebam9.biajiiQiatytwnbhed 
naefa h Hfe on soduded wortdng tann. a 
meadow mwy tram nfa. undy bmdm - 
an sfto Moor pool saua. gym, tennis ate. 
Wb efcr ffw p«d*« eMrOMtan el propsiiy 
and location wtucti. through group 
ownership ghea you Vm opportunity to 
enfoy a very apodal 2 nd home or rental 
hoomo It E17560. Hope Serin flSF FT. 
Hope Cove. MngB h rWge. S-Devtxr TQ7 
1BR Tstowa 3BI333. 


RELOCATINQ TO 4ERSEY7 Parted 
Haim to W M- ^ yMA. 7ip Up cOrtdtigri, 
My tumiattod » ■» bodn#qn» 3 

bathrooms stefl Rat gang* taiga gaiden. 
Pano ramie bob vtowa. Roaktsmlal 
qiflttMora roqubad. R>r dauAt tax 05M 
«3ra« 


HOMES & 
BUSINESS 


WEST WALES 

Wear Const. Stone buDt character 
4 bed ran donee pins exnlknt large 
modern multi-purpose building. 

flawlwM nml x acre paddock. 
S llMHilfi ll Aulllll^ lumping llrvt 
HiHiten w huafaiiwBi Price ffilOjOMSAV 
Trtoni tamOy^emi retirement. 
T/O £63^0 0 Groaa Profit £32.400 
FHfPBHtBX^CWKSBaEACBVlB 
Tel f0239) B12484 or f023S) 014507 
Esk ( 0239) 621103 



LUXURY 


IN CORNWALL 

2 & 3 BEDROOM HOMES IN A SUPERB BEACH LOCATION 



PRICES FROM 


^\£ 72,495 
7*1 3 Qynp& r ' n 

9 CP THIS 'EXCLUSIVE 
DEVELOPMENT OFFERS 

• Leisure complex and swimming pool 1 

• Tweniy^iine acres of private parkland [ SPECIAL 

• Two all weather tennis HOTEL BREAK 

• Children's play ana rSgjj Take advantage afour 

• Seahorse Fob <fi Terrace Bar offer and sun at a 

• Sauna and spa pool luxury haul at specially 

•Magnificent sandy beach and south I negotiated rates 

X fixing views * 

| FOR FUlTdETAILS PHONE 0326 250000 

l»««««PlLKINGTON. 

©PlLKlNGTON HOMES 0744 692940 

fHE COURT. ALEXANDRA PARK. PRESCOT HOAD. ST HELENS. WA10 3TT. 


Kniifht Frank 
ZZ &liutley 


DEVON 

Exeter about 9 miles 
Wahlovriy views over the Exe, 
a orenibrtable house with estuary 
frontage at Lympston. 

3 reception rooms, dining Iritrhwi 
3 bednxms, 2 bathrooms. 
Almost 1/2 acre 
Apply: Exeter (0392) 433033 

ISLAND COURT Luxury 2 a 3 bedroom 

apartmenta ««i garaos h a superti beach 
toc a U on on the Wkrrf Peninsula at Wete 
KM*. overtocAkig the Daa Estuary. Prices 
from £152.000. Sates office and show 
rewtmani open 11am to 9pm Tuesday » 
Saturday. Tel: Qsi 625 0327 or 07*4 
BS3077. 



By Direction of the Crown Emm 
PORTLAND, DORSET 


A fine Grade □ Listed Portland mat 
haoae fa need of renorattaa. 
Aeonmmoduiao concady provides; 

3 receptions rooms, tatchen. sore nun. 
4 bedrooms, bsdmjmn. 

WaOeil ujiinyjjd wrtb omtiaadiiig. 

Qrcumds. 

la sR aboat 5.P4 Acres 

Far Sate by Pilrair Treaty 
as a Whole trtili Vacaat PosKSsten 
LONDON OFFICE: S’l SOS Ifie 


COUNTRY 

RENTALS 


COUNTRY 

RENTALS 



MID SUSSEX 

WWMWd. Near Haytranls Beath 
Ccwtry honae in iomtaadsK endtiod wit 
kndy ^demsod vices to the Downs. 

4 receptkai rreare, 6 babooms, 3 bahmoas, 

£3,000 pan. 

Gardena iaduded. 

AreOAie nro.My banished. 
HAYWARDS HEATH tD44Q44Uti6 

TO LET UNFURNISHED Nr Tunbridge 
Wofe. JUfcacfiM canMRtaa bam kt ooutyan) 
sating. 40Slltrtng araa wtm gaDery and 
aggjosed boams. Mod Idtohan. 4 bed, 3 
bob. B ha s iar room, garage, garden. Gaa 
Ctc Oo9attaaan.rityS5irin8.UriW 1 
year. Ofl» PCM. 0892 78235a 


ACORN PROPERTY 

management 

SERVICES 


| A selection of our country homes: 
HARTLEY WINTNEY 
3/4 bedroom black & white 
timbered cottage, rural views. 
£l,25Gpcm 

Substantial Victorian 5/6 
bedroom with tennis court 

£i500pem 

nearodiham 

5 bedroom farmhouse cl 790 , 
canal frontage £2A00pcm. ’ 

Hartley Wjntney (Hants) 
025Z 842795 















FINANCIAL TIMES 


WEEKEND SEPTEMBER 17/SEPTEMBER 18 1994 


WEEKEND FT 


OUTDOORS 


.3 


* 



Time to 

dally in 

dahlias 


CoinBaan 

pable Morris Mason from his 
broad private acres near King’s 
Lynn, Norfolk. Long before the 
season for berries, he bad col- 
lected a superb range of shin- 
ing green and beautifully- 
marked varieties, reminding us 
that nurserymen do not have 
the monopoly on major fami- 
nes and that gardeners are still 
much too slow to exploit what 

this famil y ran offer. 

The extremely spiny leaves 
of the various hedgehog variet- 
ies are best kept as individual 
specimens, but his display of 
variegated forms of ilex aqui- 
folium reminded me of the ele- 
gance which we overlook 
because we are all too afraid of 
prickles. The flesh, golden-yel- 
low marking of forms like Fla- 
vescens would please anyone. 

Egged on by this autumn 
exhibit, I intend to use them to 
fill out and brighten the places 
which need an evergreen but 
which will not suit anything of 
doubtful hardiness. Whatever 
the winter throws at us, the 
hollies will come through it, an 
idea from the autumn shows 
which will still be around in 
subsequent s umme rs. 


September is just heavenly for 
gardens , says Robin Lane Fox 


ner this year with scarlet flow- 


VMtors aefanfra the exhibits from Bumcoose Nurseries at the RHS great autumn flower show 

of needing to plant them with 


I have Just been survey- 
ing autumn as it should 
be, spread out before us 
in central London. The 
great autumn flower 
show in the Royal Horticul- 
tural Society hails has non e of 
the extravagance of Chelsea; 
on Tuesday and Wednesday, it 
drew discerning crowds who 
knew they could not see these 
exhibits under canvas in mid- 
May. 

September Is heaven in my 
horticultural book, especially 
when it alternates between sun 
and rain. The older gardening 
authorities skate over this 
excellent month, moving from 
buddleias to aut umn colour 
with only a sideways gianra at 
Michaelmas daisies. But, in the 
past 10 years or so, its horticul- 
tural scope has broadened 
beyond recognition. 

If you miss the aut umn 
shows, you are the sort of gar- 
dener who starts thinking far 
too early about Christmas 
hyacinths. You are also one of 
the class who runs a mile from 

dahliac 

No, I would not want them 
in an average small-town gar- 
den; yes, the dahlia varieties in 
popular offers are frightful. 
But if you look for the best, 
you see a depth of colour and 
shape which will lift a rural 
border out of autumn rust and 
mildew. 

At Powis castle, on the 
Welsh borders, they have no 
qualms about dahlias; and any . 
<me who saw yet another prize- 
winning show from Ayletts of 
Hertfordshire this week will 
have vowed to follow Powis’s 
example next spring. The best 
varieties of dahlia have such 
remarkably clear colour and 
well-defined flowers: Dahlia 
Charles Taylor was a front-rim- 


ers uke an inward-curving 
paeony, while Vicky Crutch- 
field remains a first choice 
among the pinks with flo wers 
like waterlihes. 

These prize dahlias are in a 
different league to those balls 
of mauve flower which turn up 
among the French marigolds in 
the gardens of visual vandals. 
The flowers are not lost in 
heaps of coarse leaves and they 
are not impossibly shaggy. 

There are six months until 
the season for starting new 
dahlias in April; but if you 
want to prolong a border in 
September, and double up on 
cut flowers and height, you 
cannot ignore the first-class 
forms In the family. Ayletts 
itself is the tops although that 
authoritative guide. The Plant- 
Finder, still omits it 


ies of these conns, especially 
the Lucifer variety which has 
long been an FT favourite. 

Exhibitors now. upstage it 
with the clear, soft yellow Sol- 
fatare, the flowers of which 
beat the other commercial 
forms in shades of yellow and 
orange and are matched 
enchantingly with the blue of 
aster King George or the blue 
and silver-grey perovskias. 

Bags of Solfo tares were 
changing hands to keen visi- 
tors, but they ought to remem- 
ber that it is not the hardiest 
in the family and needs to be 
top-dressed with a protective 
layer of debris from November 
until April This protection is 
worth tiie bother because this 
delightful form goes so well 
with white anemones, early 


Mtahnfthnns daisies and the 
first of the autumn crocuses. 

An autumn show faces in 
two directions: backwards, to 
the best of the season’s 
half-hardy plants in their final 
phases; and forward, to bulbs, 
daisies and shrubs which will 


frost Among the season's ten- 
der pot plants, I made yet 
anrrthwr mental mark for the 

white form of mhnuius called 
Popocatepetl; this flowers pro- 
fusely in pots and sunny bor- 
ders, having earned its reputa- 
tion in California. Brian ffile in 
Wallington. where London’s 
far southern suburbs meet the 
M25, is one of the few suppliers 
so far. 

These evergreen mimulus 
are future stars for terrace and 
courtyard gardening, and he 
helped me to understand the 
cause of their only failure. 
Sometimes, a stem will go 
brown and die back, a fault 
which I have attributed 
(wrongly) to over-fertilising. 
The real reason is that Its 
faded flowers have not been 
dead-headed, and fungus 
enters their stem if they turn 


brown and are allowed to hang 
aro und 

Ten years ago, the only 
familiar form was the orange 
variety, which was so famous 
as a centrepiece In the red and 
orange garden at Sisstnghurst, 
Kent But we now have white, 
pale mange, lemon yellow and 
shades of pink waiting to 
spread in frost-free seasons 
from America's west coast 

Among the frost-proof per- 
manencies, the autumn bulbs 
are a spectacular sight, 
reminding me not to overlook 
them when their catalogues 
turn up in the rush of next 
spring. The best of all are the 
white colchicums, like huge 
crocuses with no clothes on 
because they flower before the 
leaves. 

The leaves appear in spring, 
usually to a bad press, but I 
now agree with the keen eye of 
expert grower Graham Thomas 
who values them as a foil for 
yellow daffodils against grass 
in early spring. The best vari- 
ety is Spedosum Album, 
although its price is a discour- 
agement A few bulbs go a long 
way, and there is no question 


the same profusion as the cro- 
cuses of spring. 

The shrub g ro wers had the 
luxury in their exhibits of pre- 
tending that the drought had 
never existed. The hydrangeas 
looked fresh and newly-wa- 
tered, whereas mine have been 
burnt miserably along the 
edges of their leaves. 

As often, the most ambitious 
stand came from Bumcoose 
Nurseries of Redruth, Corn- 
wall which continues to pro- 
claim its fondness for des- 
patching by mail order. I 
would have sent away for its 
oak-leaved hydrangea Querci- 
folia on sight, but I know that 
it is so much better in damper 
and deeper soft. A show plant 
is fan, but misleading . The del- 
icate aster Pink Monster 
looked more accommodating 
and not at all monstrous, and 1 
wish I could comhine it with 
those marginally hardy rela- 
tions of mimosa which the 
nursery shows so welL 

At a different level of hardi- 
ness. you could have rounded 
off with a remarkable array of 
hollies put on by the unstop- 


Elsewhere, the way to civi- 
lise an autumn exhibit nowa- 
days is to pack in the crocos- not go under at the first sign of 
mias. Many of you already 
grow the bright crimson varlet- 


Fishing/Tom Fort 

Wild night 
on the loch 


M ost fishing is 

good, unmem ara- 
ble fun. But 
there are two 
other categories of experience: 
the hellish, when it becomes a 
torment, and certain days or 
nights with a blessed quality 
tha t, stamps them in the mem- 
ory, like a seal on hot wax. 

In general, it is fortunate 
that there should be a balance 
between the bloody and the 
miraculous. Were there too 
many of the former, we should 
have to escape and take up 
something safer. An excess of 
the latter and we (well, D 
would soon shed humility and 
become smug. 

It is also to the good that 
both should be rare. So, I am a 
little worried for I have had 
two wonderful indelible nights 
fhig summer - and no immer- 
sions in the Slough of Despond. 
I feel catastrophe is lurking 
every time I pull on my 
waders. 

The first was on the Suir. in 
Ireland, and I have sung that 
song of triumph already. The 
second belonged to a little loch 
in Inverness-shire with a 
Gaelic nam e - a'Ghreidlein - 
as romantic and wild as its set- 
ting in the hills that rise 
between the glens of AfiCric and 
Moriston. Its instigator was a 
man with a twinkle about him, 
Kyle Laidlay of Ttnnlch. 

What you need for this loch, 
he told us, is a night with no 
wind. And even then, he cau- 
tioned, there could be no cer- 
tainty for the trout of the loch 
(pronounced Uretel) were 
unpredictable and contrary, 
and the season was late. But 
they were big: some up to 7lb. 

The night came and there 
was an excitement crackling 
between my friend Stevie and I 
as we bounced up the track 
into the hills that hid the loch. 
Kyle was waiting for us, as 
were the midges. Beneath us, 
the surface was glass-smooth, 
except for the dimples of the 
trout 

A pale, brilliant full moon lit 
the sky as we clambered 


aboard the boat A tiny wind 
sprang from somewhere to ruf- 
fle the surface. There was no 
longer any sign of rising fish. 

Tbe method was simple: a 
big, hairy sedge cast out, then 
retrieved in steady pulls to cre- 
ate a highly visible wake on 
the water. Stevie was bubbling 
with hope and expectation; I 

was dubious. But on my third 

or fourth cast, there was a 
rush at my fly and the rod tip 
curved. It was not a big fish - 
three-quarters of a pound or so 

- but it was a start and 1 too 
was caught up in the excite- 
ment of the night. 

I can still feel what it felt 
like to be there: the darkening, 
receding shore; the moon- 
beams lighting the ripples left 
by the sedge; the slow push of 
the oars; Kyle's soft, laughing 
voice speculating on vagaries 
of trout - and increasing 
frenzy at the other end of the 
boat For Stevie was into fish 
after fish, each splash and 
fight accompanied by an explo- 
sive commentary on his exper- 
tise as a master angler. 

He had four, tbe last a tre- 
mendous, big-headed, bold- 
spotted creature of weU over 
21b. And, all that time, 
although we were fishing the 
same water with identical flies, 
I bad nothing. 

On the stroke of midnight, 
soon after Stevie had yelled 
that he was hyperventilating 
with the strain of it. a fish took 
me near the reeds in quiet, res- 
olute fashion. It fought like a 
hero, belying its weight (a little 
under lVilb) with the power of 
its runs. 

With it duly netted, the quiet 
of finality settled on the loch. 
No more would the fish rise 
that night and, suddenly, we 
realised bow cold it had 
become. Back on shore, we 
toasted the catch and then 
headed down the track, leaving 
a'Ghreidlein with its secrets 
and its fish for another night 
■ The loch, and a crop of others 
just as lonely, can be fished by 
arrangement with Kyle Laidlay. 
Tel‘ 045&4153S2. 


* 


LONDON PROPERTY 


Knight Frank 
[] & Rutley 

JNTKRNATIONAL 


Lock up Garage 
(14 spaces) for sale 

Situated dose to Soane Square with chauffeurs room 
(plus WC), storage and electronically controlled 
security gate. 

Plus one room flat, k and b. 

Long Lease £495,000 


Sloane Street 071 82-1 8171 
152 Sloane Street. London SWIX !)L)B 



NO. 29 


DINGLEY PLACE EC1 

An exclusive warehouse development just off City Road First eight 
apartments currently being converted with outstanding proportions 
ranging from l.OOO’- 1,600 square feeL 2 bedrooms, 2 bathroom (1 
ensuite), reception room. Features to include hi-tech fitted kitchens, 
hafusiraded openings, glass (corbusier) brides, sand blasted walls, 
timber strip flooring. Passenger lift, entryphone, secured covered 
parking, W9 year leases. 

Prices from £137*00 - £197*00 
Sole Agents - Hamptons 071 226 4688 


LONDON 

RENTALS 


LONDON SW6 

HURUNGHAM 

Prime 2 bedroom flat, with 
stunning River Views ♦ 
Available for immediate 
occupation ♦ Furnished or 

unfurnished 

£365 PER WEEK 
Telephone: 0734 402346 
or 1)71 736 1652 


fTLERS 

iUILDING 

JRIDGH. SE1 
x 2 and 3 bed 
ver view, ff kit, 


PER WEEK 

103 6604 
103 6944 


ANDRE LANAUVKE & Co 

Eaton Square 

SW1 

FOR SALE 
Immaculate 
4 bedroomed 
apartment, excellent 
for entertaining. 
Spacious reception 
rooms. 

PRICE ON 
APPLICATION 



TOWER BRI DOE WHARF Now St 
Katharines Doe*. 2 bedroom. 2 brtiroooi 
flat Mott P/B MO**- U" P"™ PMJ. 
E20.000 OARNAflO MARCUS 071 838 
2738 tec 071430284 


BARBICAN 1 bwtrom flat ovariooWng 
nanMm. Carpets and eurtaM InehxMd 
Cgg .500 BARNARD MARCUS 071 638 
2736 FsbcOTI 4382849 


EDQ WARE ROAD W2 Urge Media W 
portered Week (i* a irj $ep tt. both. 
Ua 75 yra £66.930. Semeni Marcus 
Tot 071 6352736 F»c On 435204 


OTOMtaWTRAL LONDON 

item or aueiinr proportion. ci w 

ip* From 3 Wto W 3 J«. C 1 "™ 

owe 071 7SC 078.’. lO-Tt* 1 


CHELSEA HOMES EARCH A CO We 
represent the buyer to save tUrro end 
money; on 3372281. F«* 071 837 2861 


barnard 

marcus 


WEST SOHO 

Choice of 2 luxury flats 
in redevelopment dose 
to Regent Sl 
1,000 square feeL 
Pedestrianised backwater. 
New 125 year leases. 

£200,000 each 
Tel: 071 636 2736 
Fax: 071 436 2649 

26 Museum St, London 
WC1AUT 


LONDON -HAMPSTEAD AREA 

Lovely me bed arret BwrtifHRy returned 
On with w rl c nm a g . mrap h e re. 4 bedroom, 
double sized receplioe room, during room, 
latches Mty equipped. bathmow. hslhny md 
2 separate w; gas ek weU proportioned rooms 
with high ceilings WeU mriatiioed msaaoa 
budding ata. 1900. Looted waiting (finance 
U shopping. maspoftuiou and imamanB. 
LeueboM/FrccboU rifle. Owner sale. Pace 
CSS .000. Will aho coaridet team! 15 SO per 
week. Elegantly furnished, flic place, baby 

jjwhH jiwfl 

Tn. NMMU1. «ZK 3*1581 
KuUMJWU 

hfi'N 44 234 3915U Pm 44 234 3*131* 


LONDON 
Fulham SW6 
South Park 

A beauifnl 4 bedroom. 

2 bathroom house, with double 
reception room, very large 
khchea/breakfast room, 
cloakroom - Prime location - 
Excellent order - Interior 
designed throughout - garden. 

Price £295,000 

Telephone: 071-736 9522 


Pbr the widest selection at 
properties m Bloomsbury, 
Holborn, Barbican 
and The City of London. 
CONTACT: 

Blooksujuy Office 071 3876077 
Ajuhcan/Qty Office 8716007008 


PENTHOUSE P/B Block Ismnnc. 2 beds. 
Super vwo. Ckoo Hampstead HeatYTffiro. 
Ex AuBi. Had fettig. In*. or nridorthd. Law 
i/ehniga. Long Ioann. EMJ00. Barbara 
Qbron Props 091346306* 


REGENTS PK 6tuxo Irani 2 bed Man Dev 
hnusa Onwtig room, tSrtng room, hi/tiNk 
room, laundry morn, sauna, bathroom, 
Shower roam, gunat daahroom, Crown Lam 
Kyra. 065,000. Bertm Qtonro Prop*. 
OBI 348 30CH. 


OOLOBtS GREEN DMachM 4 had house. 
O w olop. Ppmnnal a ride. Naads Inromal 
updtatog bane* rMfittc prt». £265, ooo 
thnkt Barbara GtoonPrope 081 3*8 90S*. 


INTERNATIONAL PROPERTY 


CAMPO MU AS - FUENGIROLA 

MALAGA - SPAIN 



117m above sea level SPANISH CHARM Scandinavian 
QUALITY (cavity walls-floor heating). 2200m 3 plot facing 
sooth. 400m 1 inside walls plos patios and terraces. 

4 bedrooms, 4 bathrooms. Large modern kitchen. 
Hall-diningroom- 2 lounges. 3 open fireplaces. 

Double garage (bonlron aot). subtr. garden. 

Large swpool net to owner 54 mill pts or equiv. 

Contact owner fax Spain 52-479412 or phone 52471127 


ATLANTA, GEORGIA USA 

57 Acre estate - woods, pastures, good streams. 

5 Bedroom main bouse, 2 bedrooms gnest/staff cottage. 
Tennis court and swimming pooL 
An understated but luxurious haven for country lovers or 
horse enthusiasts yet only 30 minutes from RITZ 
CARLTON, NEIMAN MARCUS, SAKS 5TH AVENUE etc. 

Excellent private and public schooling in area. 
PRICE: $1,600,000. 

For full details and brochure call Evelyn Ratterree 
Tel: USA 404 713 0848 Fax: 404 250 5337 



jUkm Q tntva | 
klountalnMMN 

Bu can m j ru|y AMnnENTf I 

rarer m tnemeux. vuam. 1 
88 DHBLBNE19L LEYWL QSJjJfiJ 

t finm 5ft 2Dtroofli- Crod 

eVNCSJL 

M IMMW'S'tn 0*M2| 


\Zl R INTERNATIONAL 


Cannes & Sukhoumhng Areas 
D eal dinxily with rsabHabed local 
Fn gtirfi Kajtf Agents ottering a large 
selection of Villas &. Apt. 

New & Resole. Coastal and Wand. 
Rigjamt teener holder*. 



FRANCE NINES 2 mam apartment 
on tamous got! oouno *imo» d# Cenro>9 M 
far stia 40000*. Fgx. 0794 341B00 


Famlt sells directly in 

TUSCANY 

between Siena A Volterra 
Medieval Casile/Yiliage 
plus 10 Farms 
23 Oh a. field. 470h&. wood. 
Price range UK £4 mill. 

For information, wriV firs in: 

Bax No. 94/370, Studio Blci 
SpA, Via deeli Arcimboldi 5, 
20123 Milan, ITALY 


COSTA DEL SOL PROPBnieS M&bftfe 
Offices. For Irrfontnflton & Price !t*J rtnp 
OBI 903 3761 anytkna. Pax 3558 
WORLD OF PROPERTY MAGAZINE The 
bad 4 For your FREE COPY Tit 

061 542 9088 Foe 081 5422737 


FRENCH PROPERTY NEWS Monfflly 
eKJ. new & bM propertes, legal cetunr ale. 
Ask tar yw FRffi copy now. Tot 001 647 
1834 


GUSWSBV-SHKLOS & COUP ANY LID 
4 fioutn EjptanaJs. a Pew Pun. One of ito 
Wand* kopaa Independent Easts Agents. 
Tot 0481 71444& Foe 0481713811. 


INTERNATIONAL PROPERTY TRIBUNE. 
Free property 8 service maganno. RoquM 
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COSTA BLANCA- tarU eokwbroctaro 
on our ol km and Msata spta, Wtes. 

tineas and bualnaas aa In Horro rs and 
Tofrowta)S.csflOHH on 0278 070201 new. 


'monte-carlo 

LesFloralies (Carre 
cFOr) Pleasant studio 
42 SQ.M entirely 
refurbished, storage 
room and double parking 
space (R13) 
Exclusive Agent 

A AGEDI 

7/9 Bd des MooUns MC 96000 Monaco 
w Td 33-92 165 939 Fax 33-93 501 642 ^ 


PRIVATE SALE IN 
PROVENCE/FRANCE 
In SL CTiimB (Dept Bunches da Rhone, 
filing dc Berrc ■ Vicinity of Arles, 
Avignom. Aix and Manefflca. 

COMFORTABLE RESIDENCE 
Dining/Llving room with fireplace. 
3 bedrooms. 2 bathrooms, 2 separate 
toilets. Studio apartment with k hc b c a ftte 
ind bathroom. GuigE* patio, 3 Buncos, big 
garden. Baill-up area 300 or. Toui land 
area 4040 m'. Vermii for farther 
development. 

PRICE: Swtai Francs 358480 
C3UFFRE VD3-208.U8. 

PobUdtaa, 4010 BaacVSwtealmd 


( ANN! $ - CALIFORNIA - 
MAN VENTl'RA 


Authentic Pro vernal farmhouse, 

5 mini! from La Crotaetto wtfh 
spectacular panoramic views of the 
boy of Cannes. Recently completely 
refurbished lo a very high standard. 
Thb dream bouse nestles in lttownc 
private nmi 

FF 10 Minion 
de Lara & Partners 

ZJ WilmmjpMo Aren, GB- London. W4 3HA 
Teh OBI 7420708 Fax; 081 742 0563 


TURKS & CAICOS ISl-ANDS 


HdlMi Territory jest ever an how Emm MamL 
USJ official Wtrerwy. no rrrh a apr (Mnit, no 
bcaoc oreapkzi tmec. ConUe Gardena 
hon mn e a from U5618JQ0. 

So d adtd loathm oa or mar beach. Homo 
piaaa whh pbanmg q^nmL For these aad 
o(be: stand properties contact 
COMUS PROPERTIES LTO 
PMB17. CnodTaduTaHaA Caicos Uaadi 
TUt 809 046 2bl I Fxc 800 946 2612 


CYPRUS 

Oldest, Islandwide developers 
esL 1936. Freehold vfllas/apts 
on hills & coast. Finance 9%. 
Inspection ffights. 
LORDOS COKTRACTA, 
Box 1175, Limassol, Cyprus, 
ToL (357-5) 377977 ,Fax: 363143 


COTE D'AZUR ALPES HARtTNES ft VAR 
3PA (EU) calls ma bast Apanmontt 
and Villas hi Cannon, Monte Carlo. 
SL Tropaz, Voiko. Antibes, Mamon anti 
Other desirable exclusive locations. 
Tot 071-485 0600 Roc 071-4850436 

UA2AQ6N - HUELVA. SPAIN, NEAR 
FARO. VHIe on me beach. 5 fliu. bed. 
oomttt. tumtehed. Mom uatktd T (341} 
549 1882 Mazagdn. Huelva T (3459) 
378448 


Weekend FT 

WORLDWIDE RESIDENTIAL PROPERTY SUPPLEMENT 

SEPTEMBER 24th 1994 

PabBshed is Lawton, Puis, Frankfort, New York and Tokyo. 

If yon have residential property for sale or to let in tbe UK or overseas 
advertise in this SPECIAL ISSUE which will reach approximately 1 million 
home buyers or tenants in 160 countries. 

Examples: 

LINEAGE if £10 per line 
(minimum 3 lines) 

(5 wonts approx per line) 

&£. 3 lines = £30 + VAT. 


CANNE8 CENTRE APT. 82 aq- ">. Z7 
acre gdn. 20m pool. priv. Onu owner. 
Tat 0428 007282 


DISPLAY al £35 per 
column cm 
( m in i m u m size 3x1) 
e.g. 3cmxlcol = £105 + VAT 


DISPLAY with photograph 
£35 per colon mono 
£48 per col cm colour 
eg 7x1 Mono = £245 + VAT 
7x1 Cotoar = £336 + VAT 


S.W. FRANCE 
RURAL POSITION. 

Easy reach of luge tom. 500 acres 
gently sloping North to South. 
Superb mtnatkm & cKmale. 1 boor to 
Mediterranean. Ploiuring granted 
for Idaac and readcmiaL 
EaqvirUs 

TtL- 6226 741414 or Fox: 6226 74I4IS 


La Mancha, Spain 



EXCLUSIVE SHOOTING 
ESTATE 

Fantastic wild partridge 
shooting. A magnificent, newly 
built and fully decorated 
manor house 770 ha phis 
lease, 300 ha. Price: £L3m 
Fax ant) 48 8 21 49 76 


FOR FURTHER DETAILS CALL 071 873 4935 FAX 671 873 3098 
If ym have a property you wish to promote in flux special worldwide supplement 
the coupon and send to: Sonya MacGregor. Residential Property Advertising. 
Hnsnoni Times. One Sovtbwsifc Bridge, London SE1 9HL 


1 wreAl Be fLgg^^l . : 1 DISPLAY ♦ COLOUR PHOTO] 

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XVUI WEEKEND FT 


FINANCIAL TIMES WEEKEND SEPTEMBER 17/SEPTEMBER IS 1994 


FASHION 


I nformal elegance these 
days is elusive, espe- 
cially since few now 
pursue the traditional 
pleasures of field sports 
which once supplied a panoply 
of appropriate off-duty ensem- 
bles. Modern leisurewear 
seems polarised between the 
uniformity of American cotton 
sportswear and the horrors of 
the nylon shell suit 
But since more of our time 
is being spent in casual dress, 
even in the workplace, perhaps 
we should look beyond the con- 
fines of the locker room and, 
instead of posing as athletes no 
matter what our physical con- 
dition, find a relaxed informal- 
ity without sweaty association. 

Tarlach de Blacam, the 
owner of inis Meain Knitwear, 
offers just such an informal 
elegance. His knitwear is 
loosely inspired by the native 
dress of the Aran Islands' fish- 
ing community, some 30 miles 
from the Galway coast. 

As long ago as 1907 J.M. 
Synge admired the Islanders' 
natural elegance. The simplic- 
ity and unity of the dress," be 
wrote, "increases in another 
way the local air of beauty." 
De Blacam has tapped both the 
sense of design and the knit- 
ting skills of the people on 
Aran to create bi-annual collec- 
tions of knitwear that look as 
beguiling on a Wall Street 
banker as on a fisherman. 

Banish from your mind the 
nation of chunky, scratchy, 
shapeless fishermen's jerseys 
sold in roadside tourist traps. 

Instead, picture butter-soft 
alpacas and cashmeres for win- 
ter and linen-silk mixes for the 
summer piled high on the 
shelves of exclusive depart- 
ment stores, such as Liberty in 
London or Bergdoff Goodman 
in New York. Inis Meain Knit- 
wear is worn by discerning 
men and women from Tokyo to 
Capri 

The colours are inspired by 
the dry-stone walling on the 
Aran Islands. Traditionally its 
men wore natural colours, indi- 
gos and slate greys, its women, 
madder red and navy. To this 
de Blacam has added the tar- 
black of the curragb bulls, the 
infinite blues of the glittering 
seas, the greeny-browns of Its 
saline weeds, and the myriad 
hues of the wild and rare flow- 
ers - those shy, pointillist 
specks of colour sheltering 
from the salty sprays between 
the limestone shards: gentian- 
blue, cranesbill purple, stone 
bramble-vermilion, sea bind- 
weed and mayfiower pinks, 
and the singing yellow of bit- 
ing stonecrop. 

De Blacam is a practical 
dreamer. He has fused the 
romanticised notions of tradi- 
tional Celtic life, passed down 
to him by his grandfather, with 
the opportunities of Japanese 
computer technology and the 
harsh financial realities of the 
fickle fashion market 
“We have enormous disad- 
vantages operating from this 
place - communications, basic 
financial services, such as 
banking are all poor," he 
explains. 

Initially, knitwear was rowed 
to the mainland on a curragh 
before being jetted around the 
world but uow de Blacam has 
brought an aircraft service 
(1975), as well as electricity 
(19781 and water (1981) to serve 
the island's 300 inhabitants. To 






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Hooked on simple Irish elegance 


Jane Mulvagh explains how the understated knitwear worn by fishermen inspired a sought-after fashion range 


meet all these costs and make 
enough profit to keep in busi- 
ness he had to target the top 
end of the market and go for 
innovative, high-quality design 
and rich raw materials. “But 
apart from that,” says de Bla- 
cam, "if we just churned out 
old fishing knits Fd be bored 
stiff after a week and give up!" 

De Blacam taps the local 
s kills of 22 employees, mostly 
women, from whom he culls 
endless stitches and patterns 
handed down through the ages. 
And because he is marketing 
direct from Inis Meain there is 
a good opportunity to exploit 
and romanticise the story of 
knitting on the Aran Islands. 
"But." he cautions, “although 
the romance is a bonus it is the 
quality that sells the product 
The romance is just the sizzle 
on the sausage." 

Initially de Blacam, now in 
his 40s, was seen as a madman. 
The 1980s was the decade of 
whizz kids in the big cities. All 
they wanted was suits and 
labels. 

They did not know how to 
dress casually. Believe me, in 
the 1980s it was difficult to sell 
our knits. It Is only now in the 
1990s that people see an alter- 
native way and have become 
environmentally convinced. 
Ireland is now seen as very 


chic. To some extent, my time 
has come." 

fiarmin»M led de Blacam to 
target the discerning and fash- 
ion-sensitive Italian and Ger- 
man markets. “Selling into 
Europe is a discipline and I 
always guessed that if I could 
sell to them I could sell any- 
where. Whereas, in the 
English-speaking world, 
because you are Irish and a 
knitwear manufacturer, you 
are perceived as ethnic-Irish 
and your knitwear as bog-stan- 
dard, so 1 had to make my 
name elsewhere." 

One myth that de Blacam is 
keen to dispel is that there is a 
resistance among these iso- 
lated peoples to working in a 
modern way. Because of the 
numerous failures among 
small industries in the west of 
Ireland, many of which were 
subsidised by the EC or the 
Irish government, they are 
now seen as high-risk areas. 

The workforce is always 
blamed. But In my opinion it's 
the management and the sales 
team who are unable to cope 
with working from a remote 
location. The workforce, 
believe me, is second to none." 

De Blacam and his wife and 
partner, Aine, have, in 20 
years, created a company prod- 
ucing 20,000 units a year with 


Photography - M&e Burtn Hair - Brian Murphy 


- JaneMutaJgli 


an annual turnover of r.tm. In 

the next year they intend to 
employ another 15 islanders 
and have stemmed the tide of 
emigration. 

“We’ve given the place a 
sense of belonging and some- 
thing to contribute to the 
world. 

"The islanders are not a drag 
on the national or the Euro- 


pean exchequer. We make a 
contribution of about £100,000 
a year to the exchequer and 
that gives these people great 
pride and means they can stay 
where they belong rather than 
having to go off to look for 
work. 

This means we can keep 
our society here better bal- 
anced and not, like many Dish 


villages, filled with just the 
very young and the very old." 

One of the distinguishing 
features of the fiercely inde- 
pendent islanders is that they 
were always, despite their pov- 
erty, immaculately dressed. 
Aine, a native islander and 
niece of the island's poet, says: 
“If you look at the photos of 
the islanders during the 


numerous famines of the 19th 
century you see that they were 
always extremely well turned 
out compared to the mainland 
The women were self-sufficient 
and made their own clothes 
with great care and attention. 
Their menfolk and children 
always looked well" 

Tarlach and Aine have sim- 
ply tapped into that sartorial 
pride and, as we pass two 
fishermen coming from the 


beach wearing their Inis Meain 
jerseys, he points out thetr 
innate elegant*. They always 
go for the subtle, single-colour 
ones. They know that the jazzy 
patterns are for the tourists.” 
And, in turn, these are the 
very styles that Yohji Yama- 
moto, the Japanese designer, 
has chosen for his next bou- 
tique collection which will be 
sold under the I M label. 



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■ All jacket and cardigans cost 
between £180 and £190. jerseys 
between £150 and, £160- and 
waistcoats between £110 and 
£120. Stockists include: 

M in the UK: Liberty of Regent 
Street, London Wl; Harrods of 
Knightsbridge, London SW1; 
and Simpson, PiocadUly. Lon- 
don WL 

US Bergdoff Goodman. Bar- 
neys and Paul Stuart in NYQ 
Louis in Boston. 

Italy: Top Ten. Turin; Giusto, 
Bologna ; and Cantorelli, Peru- 
gia. 

Japan : Ginza boutiques in 
Wako, Tokyo. 

France: Aberdeen m Deauville 
and Alain Martmiere, Paris. 
Ireland: Inis Meain. Aran 
Islands, Co Galway and Brown 
Thomas, Dublin. 


I, ■ 


1 V -9 K 










■!1» 


Ai an! tin 


PENNY PLAIN 


leciron 




NEW AUTUMN '94 CATALOGUE 


Beautiful clothes 
chat express 
individuality - 
only a phone call 
away! 















? ' 
W«Sfc Ik 





> fi 


FINANCIAL TIMES WEEKEND SEPTEMBER 17/SEPTEMBER 18 1994 


WEEKEND FT 


HOW TO SPEND IT 


Pick your cotton for 
nights of linen luxury 

Lucia van der Post hails a growing emphasis on synthetic-free bedding 

A jL£MP* to ^^que standard pillowcases. £12.50. square pillow- £25) but in mid-October it will be openinj 
'-*** rannot pass cases, £15. a shop at 3-4 Broxholme House. Nev 

® nt i? ue Marks and Spencer is still, on the whole. King’s Road, London SW6. 
com nei] pH * ee ^ addicted to its cotton and polyester mixes It offers an unashamedly nostalgic tool 


A ll those addicted to antique 
jmen and who cannot pass 
those magic words “antique 
market" without feeltng 
compelled to start raffling 
mrougn tne shelves will £all with joy upon 
Franfojsede Bonneville’s The Book ofFirte 
w h>ch could easily become the 

addict S man ual 

It is a homage to the subtle sense of 
luxury that crisp white sheets and soft 
blankets can convey, to the sense of secu- 
rity that conies from having piles of 
sweetly-scented, freshly-laundered linen 
neatly stacked in the cupboard. 

These pleasures are once again accessi- 
ble to all but the most impoverished. Habi- 
tat, for instance, sells only too per cent 
cotton bed linen. And now, for sophisti- 
cates, there are crisply-styled absolutely 
plain white sheets and duvets, there are 
cool checks for those who hanker for a 
plain-Jane New England look and there 
are plain natural dye bed hnen sets for 
those who prefer their linen coloured. And 
all this oomes at astonishingly reasonable 
prices - double duvet covers about £65, 


standard pillowcases. £12.50. square pillow- 
cases, £15. 

Marks and Spencer is still, on the whole, 
addicted to its cotton and polyester mixes 
(its customers no doubt hooked on ease of 
care) hut in its latest mail order brochure 
it does offer an absolutely plain white 
embroidered set of 100 per cent cotton 
duvet (£ffi single, £53 double) and Oxford- 
style pillowcases tor £13 each. The very 
plain 100 per cent cotton Jacquard bed- 
spread in pure white is exceedingly nice 
and costs just £60. 

Dtea, too. has gone fin- nothing bat 100 
per cent cotton in its bed linen range and 
seems able to offer it at the best of all 
prices - crisp New England blue and 
white checks with single duvet cover sets 
starting at £14. 

In the past few years, however, a num- 
ber of specialist companies have sprung 
up offering more exclusive ranges. Dam- 
ask has been until now an entirely mail 
order company (write to Units 7 & 10, 
Sullivan Enterprise Centre, Sullivan Road, 
London SW6 for a brochure, sending £2.50 
which is refundable when you spend over 


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ToRe da Jouy bedspread and cushion n cream and coral by Damask 


£25) hut in mid-October it will be opening 
a shop at 3-4 Broxholme House, New 
King’s Road. London SW6. 

It offers an unashamedly nostalgic took 
with white woven cotton bedspreads, gen- 
tle patchworks, faded prints or crisp 
checks and an especially attractive set of 
designs for the nursery, and nightdresses 
with plenty of old-fashioned innocent 
charm. The toll-cover brochure shows the 
range beautifully and the collection can 
still be bought by mail. Prices are good - 
hand-quilted patchwork bedspreads cost 
£155 for a double size (215cms by 240cms), 
woven cotton bedspreads startin g at £46 
for a single size and finely embroidered 
duvet covers starting at £34. 

Those who prefer a crisper, more con- 
temporary look should look out for Tur- 
quaz - in bold checks, plaids and stripes. 
The collection uses nothing but 100 per 
cent hand-loomed cotton from India. There 
is, of course, the ubiquitous selection of 
blue and white checks but there are yel- 
lows, browns, greens, greys as well as col- 
our combinations. T.fkt* most of the more 
up-to-the-minute ranges, it offers square, 
buttoned pillow-cases as well as the stan- 
dard oblongs. Stocked by Peter Jones, Lib- 
erty and the John Lewis stores, prices 
start at about £12 for a buttoned Oxford 
pillow case and £50 for a single duvet 
cover. 

Cologne & Cotton which some readers 
may remember offers a lira ft ah but charm- 
ing and very affordable range of pure 
white and checked bed linen started with 
a single shop in Leamington Spa but it, 
too, now has a London flagship at 791 
Fulham Road. London SW6. 

For those looking for the intimate in 
duvets I recommend a brand called Brink- 
haus. At the top of its range are finest 
white Hungarian goose down filled duvets, 
covered in 100 per cent combed Egyptian 
cotton batiste, each cover stitched in small 
squares to keep the fining evenly spread. 
These do not come cheap - the largest 
size, 260cms by 220cms is £680 but it does 
have a very high 122 tog rating (a tog is 
the indu stry measurement for warmth). 

Those who have found duvets impossi- 
bly hot this gnmmpr might iikp to know 
that Brinkhaus does a lightweight s umm er 
silk and cotton covered version (62 tog 
rating and the cover is again stitched into 
small squares) at £210 for the largest size. 
The B rinkhau s range can be found at Har- 
rods. John Lewis, and House of Fraser 
stores. 

The free brochure showing the full 
range is available from The French Linen 
Company, Unit 7, The Vale Industrial Cen- 
tre, Southern Road. Aylesbury, Bucking- 
hamshire HP19 3EW. 

■ The Book of Fine Linen, published origi- 
nally by Flanrmarion, is distributed in the 
UK by Thanes & Hudson. 208 pages, £30. 


Forever in fashion 

Styles change but fiances still give diamonds, says Lucia van der Post 


I t is nice to know that the 
ancient rite of the 
engagement ring, that 
abiding token that He 
gives to Her when his inten- 
tions are honourable, is still 
going strong. According to de 
Beers 96 per cent of brides 
receive an engagement ring of 


some sort. (What, I wonder, 
happens to the other 4 per cent 
and are their marriages any 
the worse for all that?) 

Of that 96 per cent, de Beers 
reports that more than three 
quarters include a diamond. 

Of course the matter of get- 
ting engaged these days is not 


Baume & Mercier 

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approached with the same 
solemnity as it was in times 
gone by. EJ. Cushing summed 
up the prevailing attitudes of 
the day in an essay he wrote in 
1926 on Culture and Good Man- 
ners in the US. “An engage- 
ment ring is a matter for seri- 
ous thought on the part of the 
young man. The best that his 
pocket can afford is what be 
desires and a ring that will 
please his fiancee’s taste is 
even more important. Either 
by asking her directly or from 
someone who knows her pref- 
erences be finds out her desire 
and tries in every way to fulfil 
it. The solitaire diamond as 
large and perfect as he could 
afford has for many years been 
the standard engagement 
ring." 

The days when Richard Bur- 
ton gave Elizab eth Taylor the 
33 carat emerald-cut Krupp dia- 
mond (Tve never been so 
left-handed in my life," 
declared In Taylor) seem to 
belong to a vanished world but 
nevertheless those who can 
afford it still seem to like their 
diamonds large. 

Claudia Schiffer. one of the 
jet-set breed of so-called super 
models is sporting a flawless 
five carat brilliant-cut diamond 
designed by Bulgari bought for 
her by her fianc6. magician 


David Copperfield. When David 
Bowie married Iman he gave 
her a wonderful canary yellow 
emerald-cut diamond with two 
white triangular diamonds 
either side. Cindy Crawford 
has a diamond-set gold band 
from Richard Gere. 

Among the bright young 
things, the fad ring is Cartier's 
Ellipse - a thick yellow 18 
carat gold band, it costs £995 
when set with semi-precious 
stones and £21,200 when set 
with a 12 carat solitaire dia- 
mond. When the engagement 
follows its proscribed course 
and ends at the altar, then a 
plain thick yellow wedding 
ring can be added to make a 
ynfttrbing pair. 

On average. British men are 
really rather mean. The aver- 
age price paid is about £350. De 
Beers suggests that a young 
man these days ought to think 
in terms of spending about a 
month’s salary (in Japan the 
average is about three months 
salary and in America two 
months) — after all think what 
a girl spends on a wedding 
dress which she wears merely 
for half a day whereas the ring 
is meant to last forever. 

A collection of 60 diamond 
rings by some of Britain’s best 
designers, ranging in price 
from £835 to £5,000 is on dis- 


Giant 

Chronometer 
Carriage 
Clock 





You can toB a good hotel by the quality of its linen - this photograph of the linen room in Les Pres d'Eugeme, a hotel in the French resort of 
Bigtae-tes-Bains is taken from The Book of Foie Linen. 


*■18 ™ 




in 18 carat gold: £996 to £21,200 depending on the stone 


Platinum ring by Paul Spurgeon, £1,500 depending on the diamond 


play at Jess James, 3 New- 
burgh Street. London Wl. 

The really tricky thing is 
what do you do when love 
turns sour. For those who 
mind about correct behaviour 
the rule is: if He breaks it off. 
She gets to keep it. If She 
breaks it off. then strictly 
speaking she should return it. 
But you could, I suppose, 
always follow the advice of the 
inimitable Zsa Zsa Gabor. 
When asked by a friend whose 
engagement had been broken 
off if she should return the 
ring, she replied “by all means 
give back the ring - just make 
sure you keep the diamond". 

■ Diamond Engagement Ring 
Collection is an at Jess James 
until September 22. It nunvs to 
Hamilton & Inches in Edin- 
burgh from September 23 to 
October 3 then to Manchester. 
Liverpool, Newcastle. Chester. 
Bedford, Aberdeen. Lichfield. 
Blackpool. Bath and back to 
London 








Ml * 


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X 


XX WEEK-END FT 


FINANCIAL TIMES WEEKEND SEPTEMBER 1 7/SEPTEMBER IS 19^ 


FOOD AND DRINK 


A couple of years ago I 
received a copy of a let- 
ter sent out to secondary 
school teachers by the 
Vegetarian Society. Its aim was to 
encourage teachers to get their 
pupils to give up meat. 

It struck me as being particularly 
pernicious; an attempt to set chil- 
dren against their parents. I do not 
donbt that similar letters have 
been sent to primary school teach- 
ers, who exercise considerable 
power when it conies to the infan- 
tile mind. 

Beside me is a pile of recently 
published books on vegetarian 
food. Two of the authors aban- 
doned meat-eating in infancy. Rose 
Elliot (The Classic Vegetarian Cook- 
book. Dor ling Eindersley, £14.99) 
saw her mother manhandle a fish 
when she was three, and never ate 
meat again. Peter Cox ( Encyclope- 
dia of Vegetarian Living. Blooms- 
bury £16.99) stopped at two. 

It is hardly a sign of precocity to 
hate meat as a child: **I don't like 
that mummy," is what they gener- 
ally say. Left to their own devices 
children would subsist on sweets 


Vegetarian food ‘terrorism’ 


and crisps. Nor are they fond of 
greens. Even vegetarian parents 
are reduced to ruses to get their 
children to eat vegetables. Carnivo- 
rous parents do the same with 
meat 

For Peter Cox vegetarianism has 
all the appearance of a particularly 
austere religious order. This 
self-abnegation is one of its least 
attractive characteristics - along 
with the sanctimonious tone 
adopted by some of its converts. 

Austere men are often dangerous: 
Cromwell, Robespierre, Mussolini 
and Hitler, for example. The first 
two derived no jay from food, the 
last two were vegetarians. Hitler’s 
vegetarianism is supposed to have 
been influenced by his fondness for 
animals. “The only two creatures 
who have remained loyal to me," 
he sobbed In the Bunker, “are Eva 
Braun and my (Alsatian) bitch 
Blondi." That didn't prevent him 


from trying out the cyanide first cm 
Blondi before using It on Eva and 
himself. 

Cox and Hitler share a trait: they 
both believe the fixture belongs to 
vegetarians. "I have news for meat- 
eaters,” Hitler told his tablemates, 
“in the futur e everyone will be veg- 
etarian.” 

Cox is ready for this ugly com- 
parison. He cites a number of veg- 
etarian authors who deny Hitler's 
membership of the order. Hitler is 
supposed to have expressed a fond- 
ness for Bavarian sausages. This 
proves little: Hitler always said his 
favourite composer was Wagner, 
when in reality it was the Hungar- 
ian Lehar. He had to tend to his 
Germanic image and few Germans, 
then or now, would have under- 
stood a hater of sausages. Cox then 
cites a passage of Oswald Spengler 
and “rests his case”. But Spengler 
hated the Nazis and wanted noth- 


ing to do with them. 

Cox agrees that vegetarianism is 
not a western tradition. There are 
plenty of vegetarian cultures 
around the world. I ate a Jain meal 
in India and positively enjoyed 
south Indian vegetarian food. But 

Giles MacDonogh, a 
committed carnivore , 
leafs through some 
veggie cookbooks 


here in the west we neither wor- 
ship nor despise animals, we sim- 
ply eat than. Indeed, I wondered 
whether Cox loves animals as much 
as he says given his desire to tom 
cats and dogs into vegetarians. 

What vegetarians have tolled to 
do so tor is convincingly to adapt 


vegetarianism to Hie western tra- 
dition; to create a viable gastron- 
omy. Rose Elliot might propose a 
gratm dauphinois. but for a French- 
man this is a dish requiring some 
slims of rare lamb. It is not a 
meal in itself! 

For Judith Wills (SHm and 
Healthy Vegetarian, Conran Octo- 
pus, £16.99) vegetarianism is a 
means to an end: slimness. By slim 
die means more attractive. But giv- 
ing up meat for vanity’s sake is a 
double-edged sword: yon become 
more attractive only to other vege- 
tarians. It is pretty hard to tuck 
into a piece of meat with a vegetar- 
ian; it is a bit like having a drink 
with a teetotaller, or li ghting op tn 
front of a reformed smoker. 

Both Christine McFadden (New 
Vegetarian Food, Salamander, 
£12A9) and Annie Bell (Evergreen, 
Bantam, £16.99) are refreshingly 
unwilling to proselytise, and the 


latter laudably tells us that vege- 
tarian food Humid be "fresh, sen- 
sual and alive. ..Being a vegetar- 
ian should not antnHiatimTly mean 
a denial of pleasurable foods, or an 
acceptance of unpalatable ones.” 

Sadly neither author gives us 
much to chew on; and Christine 
McFadden’s language is unpalat- 
able. For her “minted”, “parsleyed” 
and “herbed” are adjectives; and 
she confuses the adjedlve “roast” 
with the past participle of the verb 
to roast: "roasted”. 

Annie Somerville ( Fields of 
Greens, Bantam, £174)9) reminds us 
that Californian vegetarianism is 
still Inspired by the flower-power 
Buddhism of the 1960s. 

Which leaves the food terrorist 
Peter Cox. Not for nothing are his 
initials PC: vegetarianism is “the 
world’s healthiest, kindest and 
most environmeutally-sound life- 
style”. Cox looks forward to the 


day when -animal exploitation and 
slaughter are as obsolete^ send- 
ing children op chimneys ■ 

We meat-eaters have kttte t° 
commend ns: obese and unhealthy: 
crnel and insensitive, even our 
excrement smells nastier than veg- 
etarian excrement In Cox’s view of 
history Adam and Eve only tegnn 
to eat meat once they had left Para- 
dise. He forgets they were expelled 
for eating an apple. 

You might look for a long time to 
And anything appetising in the 
p agre of Cox. This is not a book 
about pleasure, nor does he care for 
the freedom of the individual to 
choose his own way. He tilts 
directly at one of our great claims 
to civilisation: the western table 
and the way it has evolved over the 
past 300 years. 

Cox suggests that as good pri- 
mates we are not natural meat-eat- 
ers. But we are not good primates, 
else we would still be living in 
trees. We are sophisticated animals 
tn both the good and the bad sense 
of the word. Western man lives to 
eat Refreshingly few of us are 
reduced to eating to live. 


Great British Eating 

Catching 
up with 
Europe 

When in Stonehenge try the rock 
cakes , says Nicholas Lander 


A nyone visiting 
Britain after an 
interval of even a 
few years cannot 
help but notice 
the marked change in attitudes 
to food: supermarket shelves 
filled with bottles of virgin 
cold-pressed olive oil and pots 
of own-label dime fraicher, food 
and cookery programmes on 
every television channel and 
young British bom and trained 
cheCs at the stoves of brasse- 
ries, restaurants and hotels. 

In all of this the UK is finally 
catching up with the rest of 
Europe and if, gastronomically, 
Britain is not quite the equal 
of FTance or Italy yet, the rate 
of improvement is marked. 

But the range of locations in 
which good food can be bought 
is now perhaps even more stri- 
king than the quality of the 
meals. In the last 20 years 
many castles, stately homes, 
lighthouses, churches, chapels 
and coach houses have been 
adapted to serve food to the 
public. 

There are several reasons for 
this. Imaginative caterers such 
as Michael MUbum, Justin de 
Blank and Johnathan Silver 
saw the potential of these loca- 
tions. At the same time, the 
owners and governing bodies 
of the sites, such as the 
National Trust, English Heri- 
tage or the Church of England 
needed to generate extra reve- 
nue. 


Caterers and site owners 
were helped by the growing 
realisation that good food does 
not mean complicated cooking. 
It can be simple, using local 
ingredients, thoughtfully pre- 
pared and courteously saved. 
This approach has helped to 
reduce many of the logistical 
problems that confront cater- 
ers in these locations, particu- 
lar in old b uilding s. 

Thirty-six such venues - 
good examples of how this type 
of catering has developed in 
Britain - are listed in a leaflet 
entitled “Eat at Cathedrals & 
Churches” compiled by Lesley 
Bridge, catering manageress at 
St Albans Abbey, Hertford- 
shire, ALl 1BY. (The leaflet is 
free but please enclose a 
stamped, addressed envelope - 
it is also available from any 
British Tourist Authority 
office.) 

Bridge took on this role 12 
years ago when the abbey’s 
governing body decided to try 
to reestablish the role of host 
and provider which the monks 
used to fulfil in days gone by. 

This has proved such a suc- 
cess that by last year catering, 
book and gift shops earned 
£30,000 for the abbey, a quarter 
of its annual income. 

This leaflet highlights the 
wide range of food on offer. For 
example, in London, Pizza 
Express operates in Southwark 
Cathedral’s chapter house 
(071-378 6446) and Bill Sewell’s 




A 171h century Spanish painted sign for a confectioner taken from Sara Paston-WaDams'a The Art of Dining’ (£29.95) puMshed by the National Trust and aveiabfe from its shops 


vegetarian restaurants are at 
The Place Below, St Mary-Le- 
Bow, EC2 (071-329 0789) and the 
Saint Maryiebone Cafe (071-935 
6374). At one of the few loca- 
tions open in the capital in the 
evening, there is live music in 
the Cafe in the Crypt at St 
Martin-in-the Fields. WC2 
(071-839 4342) on Wednesday, 
Thursday and Saturday eve- 
nings. Gloucester Cathedral, in 
contrast offers medieval rooms 
for private parties while in 
Hereford Cathedral you can eat 
in a 13th century bishop's 
cloister. 

Catering has become a signif- 
icant source of income for the 


National Trust and English 
Heritage. Last year the 
National Trust's catering divi- 
sion contributed £L5m on turn- 
over of film. Catering conces- 
sions at English Heritage 
earned almost £200,000. 

I recently spent a morning in 
one of English Heritage's busi- 
est catering operations. The 
Stonehenge Kitchen. This is 
situated in a bunker-like 32 sq 
m kitchen in the underpass 
that leads to the standing 
stones on Salisbury Plain. The 
site receives 700,000 visitors a 
year and is home to that most 
unusual confectionery, the 
Megalithic Rock Cake. 


I came away full of admira- 
tion for the staff - not so much 
for their culinary prowess as 
for their eagerness to look 
after and please their visitors, 
anH their unabashed pride in 
their famous landmar k. 

More significant was the 
realisation that in rural areas 
such as Wiltshire, catering is 
one of the few industries capa- 
ble of offering new job opportu- 
nities. When plans for the site 
by Jocelyn Stevens, chairman 
of English Heritage, are imple- 
mented. the restaurant at 
Stonehenge will be on one of 
the most remarkable sites in 
the world. 


Great British Eating sites 

ENGLISH HERITAGE 

Pevensey Castle Cottage Tea Rooms & Restaurant, near 
Eastbourne, Sussex. The Brew House at the tveagh Bequest, 
Kenwood House, Hampstead, London. The Coach House Cart® at 
Marble Hail house and park, Twickenham, Middlesex. The Tea 
Room at Audley End house, near Saffron Walden, 
Cambridgeshire. Osborne House, Cowes, Isle of Wight 

NATIONAL TRUST 

Hardwick Hall, Doe Lea, Chesterfield. Derbyshire. Souter 
lighthouse, Whitburn, Sunderland, Tyne & Wear. Wordsworth 
House, Cockarmouth, Cumbria, Sisdnghurst Garden, 

Sbslnghurst Kent St Michael's Mount, Marazlon, near 
Penzance, Cornwall. 


Wine/ Jancis Robinson 


Sicilian sizzlers to sample 


S idly. with its delight- 
fully obvious and 
unblemished reminders 
of Greek, Roman, 
Moorish, Norman and Spanish 
Invasions, is so bewitching 
that it even managed to 
bewitch this determinedly 
greedy traveller at a time when 
it had practically no wine of 
interest and a cuisine in com- 
plete thrall to the tomato. 

In the mid-1980s I spent 10 
days on the island before find- 
ing a memorable bottle, an 
early vintage of Regal eali’s 
most serious red, Rosso del 
Conte, a deep, dark, essence 
with such a dangerously high 
alcohol level it should not have 
been allowed in the business- 
men's lunch place in which we 
finally tracked down some 
interesting food and wine. 

The island has in recent 
times turned its back on its 
classical reputation as a wine 
producer and has instead made 
much of its distance from 
Brussels. For many years the 
noble and historic wine of Mar- 
sala. once the island's pride, 
has been ignored at the 
expense of playing the lucra- 
tive European game of subsi- 
dies and grants. 

In the 1980s the island was 
frequently producing about 4 
per cent of the world’s entire 
wine production, but as 
demand for French basic vm de 
table has plummeted, so has 
demand for Sicilian wine to 
strengthen it 

Things seem to be looking 



Stefllan Wnayard worfURK tha island is producing some encouraging bottfings 


Aratuny Sato PbMa Ubraty 


up, however, to judge from a 
recent sampling of some of the 
island's best bottlings and 
experimental wine styles. 

My old friends at Regaleali 
seem to have done a bit of com- 
parative tasting in the inter- 
vening years and have conse- 
quently tamed the beast Their 
Rosso del Conte 1989 blend of 
Nero d'Avola and Perricone 
grapes is no less intense but 
considerably less of an assault 
now that it is matured in new 
oak rather than traditional 
chestnut casks. Its stated alco- 
hol content 1&5 per cent still 
make s it an unsuitable prelude 
to an important business deci- 
sion, but its savoury, concen- 
trated character well qualify it 
to celebrate one. 

Valvona & Crolla of Edin- 


burgh stock this famous Sicil- 
ian red at £10.89 a bottle, while 
its white counterpart, Nozze 
d’Oro 1992 is £9 AS and should 
also be available at W.T. 
Palmer of Oxford. 

Nozze d’Ono's label sports a 
family photograph of the 
happy couple, Giuseppe and 
Franca Tasca d'Almerita, cele- 
brating their golden wedding 
on the label and is a seriously 
interesting, discreetly oak-aged 
blend of Sicily's Inzolia grape 
with a local speciality, Tasca, 
grown at the high altitudes 
which keep the island's best 
grapes lively. 

A range of experimental 
wines made at the govern- 
ment's experimental Cantina 
di ificrovinificazione just out- 
ride Palermo provided further 


evidence that Inzolia (some- 
times called Ansonica) is one 
of the island's under-realised 
treasures. It is flail, nutty and 
characterful, can obviously 
withstand oak ageing, and the 
island’s winemakers have more 
than 30,000 acres of it to play 
with. 

Catarratto, another white 
grape, is Sicily's most planted 
grape variety by tor, and is the 
chief ingredient in the prettily 
packaged Terre di Gtnestra. 
The 1993 is still gently floral 
and has some nice fruit in the 
middle but seems more vapid 
than some of its predecessors. 

Nero d'Avola is clearly a 
great red wine resource for the 
island, bringing depth, concen- 
tration and longevity to many 
a blend. A much less expensive 


way to taste its handsome 
influence than the Count's 
heady red, is Safeway’s exclu- 
sive Nero d 'A vo la-dominated 
blend at just £3.55. This vino 
da tavota started off life on the 
Safeway shelf somewhat mys- 
teriously called Dm Giovanni, 
1991. The next shipment will 
be called simply Casa di Gio- 
vanni. Decanting is recom- 
mended. 

But the two most encourag- 
ing wines in the recent tasting, 
as Is so often the case, are not 
in commercial distribution. A 
cask-aged wine made from last 
year's Nerello Mascalese 
grapes by producers Castig- 
lione was charmingly sprightly 
in much the same way as a 
flirtatious young red bur- 
gundy, while a Moscato di 
Noto, a wine type on the verge 
of extinction like so many of 
the island's once-famous sweet 
wines, showed that Sicily could 
easily seize the Muscat de 
Beaumes-de-Venlse market 

Time for another tour of 
Agrigento and Ragusa. 


Appetisers 

Rail 

strike 

blues 


H aving experienced 
abetter first half 
of the year than 
anticipated - and 
most restaurateurs are born 
optimists - the London trade 
goffered in July and August 
Hot weather meant many 
people stayed out of town and 
conditions were Anther 
damaged by the rail strike, 
which is still hurting trade. 

At tiie top end of the 
market business is good with 
overseas visitors appreciating 
both British chefs and the 
weak pound. One leading chef 
told me that his restaurant 
was booked for dinner for the 
next three weeks and he was, 
unfortunately, having to turn 
away 50 to 60 customers a day. 

The competition increases 
With some new openings in the 
capital: the Gaucho GriQfbr 
Argentine-sized steaks in 
Swallow Street W1 (071-734 
4040) and the more Intimate 
Delirious Blue, a bar with a 
restaurant attached in Beak 
Street W1 (071-287 1840). The 
Establishment has now opened 
at No 1 Gloucester Road, SW7 
(071-589 79®) and Avenue 
West Eleven at 157 Netting 
Hffi Gate, Wll (071-221 8144). 
Two Soho restaurants have 
opened branches in the (Sty: 
The French House team has 
opened St John, at 26 St John 
Street EC1 (071-251 0848) and 
Gopal’s has a second branch at 
89 Great Eastern Street EC2 
(071-729 4218). 

Nicholas Lander. 

■ A week-long Belgian food 
festival begins on Monday to 
coincide with the 50th 
anniversary of the liberation 
of Brussels. Prince Philippe of 
Belgium will be in town to 
give a prize to beer writer. 
Michael Jackson, and beer will 
form tiie centrepiece of the 
Harvey Nichols’ Belgian 
promotion. Lambic and gneuze 
beers, fruit and abbey beers 
and Belgian white beers will 
be on sale. 

The following London 
restaurants will also be 
offering Belgian beers: Argyll 
(SW3), Avenue West Eleven 
(Wll), Black Boll (SW10), 
Brasserie da Marche (W10), 
Calico (SW18), Ciao (SW6), The 
Depot (SW14), Freds (Wl), 
Green Park Hotel (Wl), Green 
Street (Wl), Grog Blossom 
(shop, NWS) Harvey Nichols 
(SW1), The Oriel (SW3), Po Na 
Na (NWS), Rodin (SWI), Le 
Shop (SW3), The Unkm (Wl). 

Giles MacDonogh 
■ Biggies in west London is a 
traditional English sausage 
maker making sausages in 
natural casings containing at 
least 85 per cent meat 
Recommended is the delicately 
herby Maryiebone sausage. 
Biggies also makes 


Touhrase, Perigord, bratwurst 

Kielha s a, mergnez and boudin 
blanc. Biggies: 66 Maryiebone 
Lane. WL Teh 071-224 5937. 

GMacD 



Vrns de Bourgogne 
For stockists, 
teh 071-409 7275 


CLARETS AM) VINTAGE PORTS 


WANTED 

W# wiH pay auction hammer prices. Payment InunaSatc. 
Please telephone Patrick WtOdnsw 071-267 1945 


ft 


Wfl-KWSON V^fTNS® LjfcflTED 
fine Wina Merchants 
GonaanflnsW London NW32LN 



t 


financial TIMES 


WEEKEND SEPTEMBER 17/SEPTEMBER IS 1994 ★ 

TELEVISION 


BBC1 


725 News. 7-30 Fflfa ttw CaL 7 jK „ „„ 

JZEttZSLfiS ?- ** «wS! So 

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8.00 Casualty. New series. Ash dashes 
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0- 50 News and Sport; Weather. 

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Sall-partraft of British ffknmakar 
Undsay Anderson, who Is best 
known far the fikns This Sporting 
Ufa. 0 Lucky Man and If. Cameras 
foflow Anderson's dafly routine, pro- 
viding an Insight toto Ms me and 
career, and eavesdrop on meetings 
with fellow media figures including 
Davkl Sherwto, David Storey, Joce- 
lyn Herbert and Alan Price. Ander- 
son ded shortly after this profile 
was made. 

8JW Top Gear Take Two. Chrfe Goffey 
profiles Black Bess, a 1913 Bugatti. 

8.00 Knowing Me, Knowing You - WUfi 
Atom P a rt rid g e . 

MO Efccaboth R. Award-winning series 
from 1971 which chronicles the life 
of Queen Eteabeth 1. beginning with 
the 10-year period preceding her 
accession to the throne at the age 
of25. Sharing Glenda Jackson. 
Ronald Hines, Daphne Slater, Rachel 
Kempson and Bernard Hepton. 

11-00 The Moral Maze. A selected panel 
debates topical cfUemmas. 

1148 Lost and Found: Bon Voyage/ 
Aventura Mafgacha. lioo Hitch- 
cock shorts from 1944. The first fol- 
lows an RAF gutnar who escapes 
from a French PoW camp; the sec- 
ond chrenides the Ota a# a Mada- 
gascan lawyer. (Engfish subtitles). 

1240 The Lata Show Mercury Music 

Awards. Musical highlights from this 
year's ceremony, I nd u ang perfor- 
mances by Raul Weller, Share Nel- 
son, Blur and kfichael Nyman. 

148 Close. 


SATURDAY 


LWT 


MO GMTV. SL2S WhaTs Up Doe? 1130 ThO fTV 

omt Show. 1Z30 pm The uttieet Hobo. 

1.00 TTN News; Weather. 

148 London Today; Weather. 

1.10 Movies, Games and Videos. 
Reviews of Clear and Present Dan- 
ger, staring Harrison Ford, and 
What's Eating Gilbert Grape?, with 
Johnny Depp. 

140 Su p er s t ars of Wra s Mfcig. 

2jtS Life Okies On. The Thachere have 
an unexpected guest when they 
return from a famfly funeral 

8-20 Burks's Law. An embezzler Is found 
nurtured in a hotel room shortly 
before he Is due to stand trial Cri- 
mebu8ttog detective series, starring 
Gene Barry. 

4-20 Cartoon. 

448 ITN Nows and Resulta; Weather. 

5.08 London Tonight Weather 

820 BaywetehL Part one. Matt and Slade 

vie for Summer's affections, white 
Mitch tries to help a beautiful hitch- 
hiker - and b taken hostage for Ms 
trouble. 

8.10 dodl s tora . Contenders from Lich- 
field. Evesham, Huddersfield and 
Lee-on-Sofant cMsnge the mfoht 
of the muscle-bound warriors. 

7.10 Barrymore. Joe Pasquate and Brad- 
ley Walsh Join Michael Bwrymore for 
another edition of the comedy show- 
case. 

8.10 Tarrant 10 Yam on TV. Compila- 
tion of outrageous and hflartous 
smafi-acraen dps from the pest to 
the present. 

840 TIN News; Weather. 

SUMS London Weather. 

(MM Fins Desperate Hours. Premiere. 

An escaped criminal Invades the 
home of a waafthy mkJdte-ciass 
famfly. Thrffler, starring Mickey 
Route, Anthony Hopidna and NBrri 
Rogers (1090}. 

1140 The Bfo Fight Special and World 
Cup Rugby (Mon. Boxing: Ireland's 
Wayne McCullough v Mexican And- 
res Cazares in a bantamweight bout 
from Las Vegas. Rugby Union: Hfoh- 
Rghts of Romania v Wales from Buo- 
hanwt; ITN Nows HeacBraas. 

12.00 Bruce and Bob Eat America. 

140 Love and War. 

1-30 Get Stuffed; ITN News Headlines. 

145 Pro-Box. 

240 The Big E; ITN News Hetattwa. 

340 European Nine-Bafi Pool Masters. 

4L30 BPM. 


CHANNEL4 ■ REGIONS 


8JD0 4-Tfll on View. 830 Early Momtoft 8L45 BKz. 

11X0 Gazztfte FootM mte. 1200 High fiw. 

1230 pm The Greet MarOthflJEflflBah 

140 FHm: Nine Mol A small unit of soF 
cBara and their sergeant attempt to 
fend off advancing Italian forces to 
Libya. Wartime drama, starring Gor- 
don Jackson arid Jack Lambert 
(1943). 

2.15 Racing frem Ayr and The Curragh. 
From Ayr The 2125 DatHair of Ayr 
Fort Nurseries Handcap. 3J35 Silver 
Cup (H'cap), 3X5 Stakte Regency 
CtUbs DoonsWe CMP. 4.15 Lfldbrake 
(Ayr) Gold Cup (H'cap), and the 4.46 

Johnrto WdDcar Whisky Mandfeap. 

Frtm Hie Curagh; The 3.10 
National Stakes, and the 3.45 Jeffer- 
son Smurflt Memorial Irish St Lager. 

545 Braoksfcfe; New* Summray. 

840 to Reply. New series. Viewers 
comment on recant TV programmes 

7.00 The People's Pa rth unent Members 
of the public debate whether local 
can* should bo given the power 
to ran that own poflce forces. 

840 Fflm: The Desert Rats. An Engfish 
captain takas command of Austra- 
Ban troops at the siege of Tobruk, 
and ends up In a pitched battle with 
FMd Marshal Rommel. Drama, with 
James Mason (1953). 

040 Trial and Error. David Jesse! exam- 
ines the cases featured to the series 
so far, and looks ahead to new pro- 
grammes broadcast this week. The 
program Includes updated reports 
on May Dnrtn. a vagrant con- 
victed of arson and matter, and 
Mark Cleary, who served 10 years to 
prison for the murder of a 10 -year- 
dd boy before his conviction was 
quashed on appeal 

1045 Fanny and Alexander. Concluding 
part of Ingmar Bergman's semi-au- 
tobiographica! drama. Fanny and 
Alexander return to the boeom of 
famfly Bfa after the break-up of their 
mother’s montage. Femffla Ahrin 
stare. (English subtitle^. 

1145 Lata Licence. 

1145 Herman's Head. 

12.15 Brace Yourself Sydney. 

1.00 Passengers. 

245 Mare Botev The Legendary Years. 

3.10 Packing Them In. 

340 Close. 


rrv REGIONS AS LONDON EXCEPT AT THE 
FOIJjOWa TflWa 

AMMia. 

1230 Movies, Games and videos. 1-05 Angtta 
News 1.10 Nigel Mansers todyCar -94. 140 Von 
Ryan'S Ek pre ss . (1905) 145 KrtgTX rector. 535 
Angfia News and Span 
CWTRALl 

12X0 America's Top 10. 1X5 Central News 1.10 
1 Tb Munstara Today. 1.40 Movies. Games and 
Videos. 2.10 Harataf Brooks (1K9) 355 WCW 
WOrkfwkle Wresting. SJ» Cams News 5.10 The 
Corata! Match - Goats Extra. &£5 Cerara! Weartw. 
CfUMNBL: 

11-30 COPS. 1200 The ITV Chari Show. 105 
Channel Diary. 1.10 Mgel Mansers IndyCor -94. 
141 Safi Great Britain, £10 The Dst Bke Kid. 
(10861 M6 Knight Hear. 500 Chamal News. SOS 
PufOTa Ptaflce. &10 Cartoon Time. 
nnaMPlAN 

1230 Spore. 105 Gramplen HnOnes 1.10 Tote- 
flos. 140 Beanan tamhai& 210 Dorm Mwdo. 
240 &*m Qotom. 300 Zone. 525 Nfoel Mw 
aaffs todyCar *94. 365 Stventn of Wresting. 
506 Grampian Haedkies 510 Grampian News 
Review 80S Grampian Weather. 
fVMNMDlAs 

1230 Movies, Ganas and Videos. 105 Owada 
News i.io Get WeL 140 Mgei Mansel's todyCar 
■94- 210 I Married Wyan Earp. (TVM 1983} 565 
Supennara of Wresting. 506 Granada News 5.10 
taanada Qoefs Extra. 

HVK 

1200 Movies, Games and Videos. 106 MTV News. 
1.10 Mgel Mansers todyCar -94. 140 Knight Rider. 
530 Cartoon Time. 546 Red Arrows Over America. 
505 HTV News and Sport &55 HTV WSathsr. 

HTV Wa les mm HTV exwa^W 

1230 The Gen. &30 SkSng New ZrtaxL 365 

World Cup Rugby. 

1130 COPS. 1200 The HV Chari Show. 106 
Meriden News, t.10 Npal ManaeTa IndyCor *04. 
140 Safl Gm Britain. 210 The Dtt BBta Kkt 
(1986) 34S Knight Rider. 605 Meridan News. 5.15 
Cartoon Tima 
SCOTTISH: 

1230 Extra Tima 105 Scattexl Today. 1.10 Fatii, 
Hope and Calamity. 140 Tetafloe. 210 Take Yaw 
Pick. 240 Casey's Shadow. (1978) 505 Scotland 
Today 835 Scottish Weather. 

TYN0 TEES: 

1230 Movies. Games and Videos. IjOS Tyne Tees 
News. 1.10 The Fal Guy. 205 Cony On Cabby. 
(1069) 345 Knight Rider. MS Tyne Ten Saturday 
WESTCOUffTRY: 

1290 Movies. Games and Videoa. 1JJ5 Weeaccun- 
try News. 1.10 Yesterday's Heroes. 140 Ngai 
MansaTs todyCar *94. 248 Mission Top Secret. 
(1990) 205 Waetcouitry News &88 Weatcounby 
Weather. 

YORKSHHE: 

1230 Movies, Gamas and Videos. 1J» Cdendw 
News. 1.10 The Fsl Guy. 206 Cory On Cabby. 
<1983) S4S Knight Rider. Gu08 Catandsr News. 5.10 
8corelna 

84C Waiaa ee Cta w e l 4 wxcepfc- 

7X0 Early Morning. 1200 Twice Rouvl the Drfto- 
d to. (1002) 136 Hector Heatiwota 145 Rygbt 
Gamw FtagfeBM Capon y Byd iflBS. 335 Rating 
from Ayr and The Curagh. 530 Newyddoa 845 
Tocyn Tymor. 740 C’Mon lAdtTOd. 215 Cefn 
Qwtad 218 Ltygald Sgwar. 240 Fanny and Atacan- 
dnr. 1130 Fbst Frame. 


SUNDAY 


BBC1 


730 My the Dtoooow. 736 King Graatfngara. 

740 rtajxfriys. 200 Blood and Honey. 215 Break- 

test wUi Frost. 216 Out of Am mu n i tion - God 

Save the King. 1130 See Heart 

1290 CountryHfe. 

1228 Weather for the Week Ahead. 

12.30 News. 

1230 Harry and the Hendersons. 

1.00 Cartoon. 

14)5 Staven Spletbergte Araazfrig Sto- 
rleti. The Grdbbie, starring HayJoy 
Mflte as a IwuwwWb whose homo fe 
. invaded, by a monstroua craatua. ^ 

130 EaeSfiiden. 

200 Fflne Pranttaaa to Koap. Robert 
Mfichum stare alongside son Chris- 
topher and gi a ndaon Bentley as a 
dying man frying to maka wrwnds 
with the famfly ha deserted 30 yaera 
before (TVM 1985). 

4.18 Junior MastarcheL TV parsonaRty 
Deni Behr and chef David Wteon 
Judge the cufinary offerings of con- 
testants from Bury St Edmunds, 
Suffolk end Norwich. 

446 The Great Artkyuae Hunt Two 
teams of amateurs compete to find 
the best buys a* the Newark interna- 
tional Antique and Coflectore’ Fair. 
Hosted by Jffly Gookton. 

530 UfeKne. 

240 The Clothes Show. Matosfream 
autumn fashion buys, daslpier 
Wayne Hemingway's style portrait of 
his home town, Blackburn, and 
developments in cosmetic sugary. 

8.00 Nows. 

228 Songs of Prataa. New series. 

7.00 Smd Talk. 

7.30 Birds of a Feather. New sariea. 
Sharon, Tracey and Dorian prepare 
for royal neighbows. 

84)0 The PafeKfium Story. Paul Merton 
presents the first of two pro- 
grammes tracing the history of the 
famous variety theatre. 

0.00 News and Weather. 

220 Screen One: Two QoMan Baft*. 
Comedy drama about a naive anti- 
pom campaigner who unwittingly 
teams up with two actresses to 
make a sex fflm. KJm Cattrafl and 
Claire Skinner star. 

1030 Everyman. Report on possible 

candidates tar the next POP2 h the 
fight of recent rumours about John 
Paul ll'B faffing health. 

11.20 FHm: Five Eaey Place*. A 

middto-ciass drifter takes his preg- 
nant mistress home - then dumps 
her in favour of hte brother's fiancee. 
Drama, with Jack Nicholson (1970}. 

12415 The Sky at Ntflht. 

1_ZO Weather. 

135 Close. 


BBC2 


216 Open University. 210 Juntpgr Jungle. 225 

BRaa. 240 Eta the CaL 1005 What's That Noise? 

1030 Grange HBL 1255 Growing Up WBd. 1130 

Boy CKy. 1148 The O Zone. 12JOO Rugby Special. 

1.00 Sunday Grandstand. Introduced by 
Sue Batter. Including at 14)5 AthM- 
tes: The Great North Ffon. Live cov- 
erage of the ainual half-marathon 
from N e wc a stle to South Shields. 
2-30 Cricket: The Sunday League. 
Action from the final day of the sea- 
son. 3.30 Golf: British Masters. The 

. condudtog round from Wobum. 530 
Cricket- &30 Rowing: The World 
Championships, i-flghflghts of the* 
lest (toy's radng from Indtonspofis. 
Times may vary. S u bsequent pro- 
grammes mm run lata 

730 The Money Programme. New 
series. Ofivta CLetny investigates 
whether the pubilc is prepared to 
pay the price of cutting unemploy- 
ment on the 50th anriversaffy of a 
government com mi t m ent to banish It 
forever. 

8.00 PSeckto Domingo's Tates at the 
Opera. New series. Four fflms 
chroni cling the acdafcnBd tenor's 
participation In operas choaen to 
NghBgtTt different facets of his 
career, beginning with a 1992 pro- 
duction of Wagner's Die Wrikure 
(The Vtfkyrie) to Vienna Cameras 
fotow Domingo as he comes to 
grips with his role, struggles to learn 
unfamiliar German flnes, argues over 
costumes and dashes with director 
Adolf Dresen and conductor Chris- 
toph von DohnanyL 

930 Monty Python's Flying Circus. Sur- 
real comedy, tactudng a chartered 
accountant who tfruems of becom- 
ing a Son-tamer. 

930 Reputations. New series. Biographi- 
cal account, combining dramatised 
sequences with archival footage, of 
the feud between the American 
General Bsenhower and Britain's 
Field Marshal Montgomery during 
the second world war. 

10J30 Out of Ammunition - God Save 
the King. Hfohflghts of this mom- 
tag*s memorial service commemora- 
ting the 50th anniversary of the 
Battle of Arnhem. 

11.10 Flfrn: Jungle Favor. Premiere. 

Wesley Snipes plays an African- 
American a ctti t act who begfns an 
affair with his ttafan secretary (Ama- 
bete Sdonfo. Directed by Spike Lee 
C1991J. 

1.25 Cfooe. 


LWT 


200 GMTV. 200 The Disney Oub. 1215 Link. 

1030 Sunday Matrix* 1130 kterang WoraNp. 

1230 Sunday Mattera. 1230 pm Crosstalk; 

Weather. 

1.00 ITN News; Weather. 

1.10 Urn Everest Marathon. Fflm frifow- 
ing the ma mmot h event 

2.10 COPS. Pilot episode: An elite group 
of pofleemen Joto forces to combat 
crime in the year 2020. 

24M) FBm: Double Bunk. Comedy about 
the misadventures of a newfywad 
carte Ivtag in a leaky dd house- 
boat Ian Canrachasl and Janetta 
Scott star (1961). 

430 Hncjhe Real Qkxy. Soldiers of 
fortune help the US Army quell a 
terrorist uprising in the Phffipptaes 
after the Sparfsh-Americen war. 

Gary Cooper and DsrAd Niven star 
(1939). 

6.00 London Today; Weather. 

220 ITN Nows; Weather. 

230 Dr Quinn; Me dfe hm Women. Dr 
Mtoe Is upset when Sufly doesn't 
ask her to accompany Wm to the 
Sweethearts Dance. 

7.30 Heartbeat. A rabies outbreak hits 
sleepy AidansfieW. and Nick reafiaea 
that unless emergency measures are 
taken it could develop Into a 
fufi-scaie epidemic. Mck Berry stars. 

230 YouVe Been Fremedl 

200 Londoner Burning. Pearce acts as 
Impromptu mkfwtfe when an expec- 
tant mother is Involved to a bad traf- 
fic accident on her way to hospital. 

10X0 Hale and Pace. 

10X0 ITN News; Weather. 

10X0 Local Weather. 

10X8 The South Bank Show. New series. 
Proffie of Kenneth WBBams, examin- 
ing the contrast between the pubSc 
and private fives of one of the UK’s 
best-loved comic figures. 

11X8 Sail Great Britain. Gareth Evans 

and Safty S im m on ds report from the 
Southampton In ternational Boat 
Show. 

12.15 You’re Booked! 

12X5 Cue the Music. 

14B Married - With Children. 

2.15 Get stuffed; ITN Havre Headlines. 

230 FBm: Escape from Bogen County. 
Political drama, with Jadyn Smith 
(TVM 1977); ITN News HeodOnee. 

4X8 Hhe Future Cop. Sd-fi crime 

caper, starring Ernest Borgnine (TVM 
1976). 

228 Get Stuffed. 


CHANNEL4 


830 Bfltz. 7.10 Early Mornho. 948 The Odyssey. 

1215 Saved by the BeA 1245 Rawhide. 1145 

Uttie House on the Pnflrta. 

12X8 HtaR Glgot A boarding house 

caretaker vtfio has tost the power of 
speech takes in a homeless prosti- 
tute aid her chfld. Offbeat comedy, 
starting Jackie Gleason (1902). 

2X8 Mother h ood. 

2X5 Football Haifa. Live action from 
Serfs A. Fixtures include MBan v 
Lazio and Parma v CagflsL 

8.00 News Summary. 

5X0 Fibre Private’s Progress. British 
comedy takes a satfricai swipe at 
army Hfe during the second world 
war. ten Carmichael, Richard Atten- 
borough end Terry-Thomas star 
(195$). 

7X0 E quin ox. A look at the past present 
and future of the Earth's coral reefs, 
which are toeing thefr Epaatast threat 
In 85 mflflon years as pollution and 
the global tourist boom destroy the 
conditions they need to thrive to. 

The programme aeptoras the depths 
of the South China Sea. the Florida 
Keya and the Red See. and 
assasses the effectiveness of efforts 
to preserve Australia's Greet Barrier 
Reef. 

5X0 21 st Certury Airport. Itafianarehi- 
tact Renzo Plano's de&kpw are 
finafly implemented, and we witness 
the grand opening of Kansai Interna- 
tional Airport in Japan, b the land- 
mark construction a modem 
masterpiece, or a potential dteaster 
for the local envbomnent and com- 
munity? 

0X0 Fflm: Doe Hollywood. Premiere. 

Comedy r o mance, starring Michael J 
Fox as an arrogant HoUyuroad pise- 
tic surgeon whose ftfe changes 
when he b stranded to rural South 
Carofina (1991). 

10X5 Belfast Lessons. New series. A 

report on Hazelwood CoBega. one of 
several schools to Belfast which 
caters for both Catholic and Protas- 
tant chBdren, following the experi- 
ences of several pupfla. 

11.10 Gaelic Games. Fdotbah Down v 
Ditofln in the Afl Ireiand Rnal from 
Crate Park. 

12.10 Fflm: Wend KuunL A farming 
onrtu adopt a mute youngster 
found wandering atone to the African 
bush. Drama, starring Serge Yanago 
and Joseph NKema (1991). (Engfish 
subtitles). 

1X5 Close. 


REGIONS 


mi nocuous as london excb>t at the 

FOLLOWUIQ TWESe- 
ANGLM3 

1230 Bodyworks. 1255 News, 1.10 The Captato's 
Table. (1958) 250 Frther Dewing inv es ti ga tes. 245 
Love Among TNbvbb. (TVM 1987) 230 Heirloom. 
630 News On Smfey 1040 Wedhw. 1148 Suva! 
Legal 
cnmuL 

1230 News w eek. 1256 News 1.10 R ootapn rt 130 
GmMng Ifrne 230 A Trtoute to B% WHgto. 230 
The Match - Live. 455 Hi the Town. 225 Father 
Dowling Investigates, 218 News 830 Dr Quint: 
Medotoe Womaa 1145 Prisoner Gefl Block H 
onuewi: . 

11.00 Deanamaid Geirdeachas. 11.45 Sptorad. 
1230 Gardener's Diary. 1235 Headlines. 1.10 
Highway lo Heaven, 230 Scots port 218 The 
Mountain Bice Show. 348 The Twelve Tasks of 
Asterix. (1975) 215 Pick a Number. 545 Movies, 
Games and Videos. 215 Heatflnas 1040 Weather. 
1 143 Prisoner Cefl Block H. 

QVUMADA: 

1238 Gardener'll Diary. 1236 News 1.10 Shnt- 
mastars. 1-30 Hot Wheels. 230 The Great Escape. 
(1983) 230 Dr (Mrm: Madictoo Woman. 215 News 
830 Coronation Street. 1148 Festival: The Last 
Paintings of Derek Jarman. 

HTVs 

1235 The LUtest Hobo. 1255 News. 1.10 Highway 
to Heaven. 230 Limbed Ecfittan. 230 SuvtvaL 330 
The West Match. 330 Carry on Cabby. (1963) 216 
Country Watch. 545 Up Fiona 215 News. 1040 
Won t ho r. 1146 Prisoner Cel Block HL 

1230Smm Days. 1230 News. 1.10 100 women. 
230 Wanted: Dead or Mu*. 230 The Match. 215 
Cany On Again Doctor. (1968) 430 Highway to 
Heaven. 548 The Vfibqo. 215 Newa. 1148 Both 
Skies of the Fence. 

SCOTOStfc 

1130 Deanamaid Oahdeachaa. 1148 Bkoa 1230 
SkDosh. 1258 Scotland Today. L10 Macgyver. 
230 Scotsport. 3.15 Tom Horn. (1B7B) 535 Knipit 
Rider. 200 Cartoon Time. 215 Scotland Today 
1146 Hot Print. (1087) 
unite 

1225 Newsweek. 1230 News. 1.10 My Town. 235 
Highway to Heaven. 330 Airport DO: The Con- 
coda. (1B7Q) 435 Oinosai*a. 220 Animal Country. 
280 Weekend. 1 145 The Powers That Be. 
W N 8T CO U MHW : 

1230 Update. 1235 Neats. 1.10 SpecM Report. 
140 Cobbtoatones, Cottages and Castles. 210 The 
Htodanburg. (1975) 430 Sal Grata Britain. 430 
Cotton on Cenvae. 530 Minder. She Wrote. 218 
News 1040 Weather. 1145 Prisoner Cell Block H. 
Y0RK8HRK 

1235 Nawrang. 1250 News. 1.10 My Town. 235 
MgtMfty to Heaven. 330 Akport '80: The Con- 
cord**. (1979) 436 Dinosaurs. 630 Animal Country. 
530 News and Weather 1145 The Powers ThsX 
Be. 

S4C Wales as Channel 4 ex cepfc- 
936 Katie and Ortfla. 935 Daod Eye Dtdk. 245 
Uttie Red Foot House. 250 Rawhide. 1050 Baby- 
lon 2 1245 Mork and Mindy. 1.15 Rocko's Modem 
Ufa 145 Equinox. 200 Short Stories: Hard Men. 
230 PoboJ Y Cwm. 730 Hepus Dyrfa 730 Yn Y 
Teukt 830 Cymric Gwtod Y Can? B30 Newyddkm. 
258 Saftti Ar Y SUL 215 Undab y Bedyddwyr. 030 
Ar Derfyn Dydd. 235 The Missaut Breaks. (1075) 
1135 The Steep of Fteson. 


RADIO 

SATURDAY SUNDAY 


BBC RADIO 2 

530 Borot. 206 Brian 

Matthew. 1200 Judi SpWS. 
1200 Hayes an Saturday. WO 
The News Htxkfines. 230 Tne 
Golden Days of Radio. 330 
Rormte Hflun. 430 The MWt 
or a Nation. 200 Nick 
Banadough. 200 The Barron 
Krvghts. 730 100 Yeare a I the 
Movies. 730 WWsh PfOTO 
1904. 230 Dnvid Jacobs 1200 
The Arts Programme. 12.06 
RoimM Hilton. 1-00 Charles 
Nove. 4.00 Sujata BorPl. 

BBC RADIO 3 

830 Open Urtwraiiy: An MB* 
In Action. 835 Weather. 730 

nvcoTO Review. 200 BUfldbig a 

LBrjry. 1216 Record Fteteote 
1230 Spirit or the Ago. 130 
Japmw RaBecttons. 1.15 
Cetebriry Reoufl. 330 Vintage 
Yeora. 200 JOB Record 
Requeste with Geoffrey Smflh. 
248 Musk: MatWrt. hran _ 
Hawan reports from this yetsr'e 
Partommo Arts Laft 230 
DetsA Mozart. Chopin. 
Stravinsky trane Gompet 7.W 
BeeWctj and Benedict 

Barite's opera Sung in a mm 
EngReh tronoUtiOti. 2S0 

Interference. Bv JtAon Bomes. 
1030 FWe EneOfte Ftatita 
WMudti Bennett and jMtvst 
afford Benson. 1030 Kenny 
Wheater Big Band. Concert al 
Sw Worwkfc Arts Ctenra In 
1990 1230 Qosct. 


BSC RADIO 4 
630NOWG. 


210 The Ftumtog Week. Rural 
and agricuttuel meoattna. 

630 Prayer for the Day. Wtt 
jamas WMtboum. 

730 Today. 

200 News. 

205 Sport on 4. 

230 Breakaway. 

1030 Loom Ends. Chat show. 
1130 Talking Poittka. 

1130 From Ora Own 
Correspondent. 

1230 Money Box. 

1225 Tha News Out 
130 News. 

1.10 Arty Questions? 

230 Any Answers? 071-580 
4444. Listeners' responsas. 
230 Pteyhocoe: A Park In St 

PuarebuF- Comedy, by John 
Antrobus. 

430 The Rope of kttteteuopa. 
Jews and t!» rte of itadsm. 
430 Science Now. 

830 The Brand Hal and too 

Distant HaL 

540 Mon of Letters. 

200 News and Sports. 

6 L 2 S week Endho- 

8J» Poatcards from Gotoam. 

T3B KoMdoecope Feature. 
Writer John Harvey traces the 
rise and M of |ec: tfunpatar 
Aten Welsh. 

730 Saturday Ntaht Thafanx 
Time and the Conways. JB 
Priestley's drama « h too 
alleimath of toe Aral world war. 
280 Ton to Ten 
1030 News. 

10.18 looking Forward » mo 


Past 

1045 As Soon As 1 Open My 
Mouth. East End accanfa 
1130 Richard Baker Comperes 
Note- 

1130 Staking Lorn to Martyn. 
1%00 News. 

1233 Shipping Forecast. 

12.43 (LW) As World Service. 
1243 (FM) Ckxta 


BBC RADIO 5 LIVE 

535 Dirty Tackle. 

030 Tha Breakfast Programme. 
230 Weekend with Kershaw 
and Whittaker. 

1136 Spectfl Assignment 
1135 Crime Desk. 

1230 MxMsy Edfflon. 

12.18 Sportscal. 

134 Sport on Rve. 

200 Sparta ifeporL 

635 Stx-O-Sfa 
738 Saturday Gfrfkin. 

205 Asian Perspective. 

038 Out This Week. 

1035 The TmafrMrtt. 

1130 WgM Extra. 

1236 After Ham. 

230 Up AR Night. 


WORLD SERVICE 

BBC for Europe can be 

received la — t arn Europe 
on medium wove 648 kHZ 
(4GGan) at Views timea BSTi 

200 Morgenmasattn. 230 
Europe Today. 730 World and 
British Nows. 7.15 The World 
Today. 730 Meridian. 200 


WQrid News. 216 Wmagukfe 
835 Book Choice. 8J0 People 
and Poflflca. SUM World Neva. 
208 words Of FattL 215 A 
Joty Good Show. 1030 World 
News and Buamaas Report. 

10.15 Workfbriaf. 1030 
Devatapmant 92 1046 Sports 
Round-up. 11.00 News 
Summary: Jazz Now and Thai. 

11.15 Latter from America. 
1130 BBC English. 1146 
Mittagsmagazln. 12.00 
Nswsdeak. 1230 Meridian. 
130 world Nawa. 130 WOlds 
of Fa HA. 1.15 Muithrack 
AKemative. 146 Sports 
Round-up. 230 Newahour. 
3X0 News Summary: 
SportswoifcL 430 World News. 
4.16 BBC EngfaH- up Haute 
AktuoL 530 World and British 
Nows. 218 Sportsworid. 200 
BBC English. 230 Haute 
AktuNL 730 News and features 
in German. 200 News 
Summary; Madonna: Truth or 
Dare? 245 Rom tha WooldSea 
030 Worid Nows. 210 Wards 
of FMh. 213 Davetepma n t 94. 
930 MeiMan. 1030 Nawshoir. 
11X0 World News. 11X5 
Words of FoHh. 11.10 Book 
Choice. 11.15 Jazz for tha 
Asking. 11.45 Sports 
RQunti-UP. '230 Nawsdaste. 
1230 Sounds of South Africa. 
130 Worid and British Neva. 

1.15 Good Books. 130 Play of 
too Weak. 200 Nawsrfruk. 330 
Liberation Now. 4X0 
Newsdesk. 430 BBC EngSsh. 
445 News and Prow Review In 
German. 


BBC RADIO Z 

730 Don Maclean- 9X8 
Michael AspeL 1030 Hayes on 
Sunday. 12X0 Desmond 
Carrington. 230 Barmy Groan, 

330 Mwi OWL 430 Serenade 
In Brass. 430 Stog Something 
Simple. 200 Chsta Chester. 
7.00 Richard Baker. 230 
Sunday Hrtf Hair. 030 Aten 
Keith. 1030 The Life of Python. 
1235 Patrick LuiL 330 Steve 
Madden. 


BBC RADIO 3 

230 Opm lUmratty: Learning 
through Ufa 255 Weather. 
730 Saoed and Profane. 255 
Choice of Three. 030 Brian 
Kxy*s Sunday Morning. 12.15 
Mutic Marteo. 130 BaetooMn 
tt Edtobutft 23S La BOflM 
Chanson. Wolf, Brahms, Faura- 
415 Beriki Phflhamtonk: 
Orchestra. 545 Imwpretations 
on Record. Raconfings of 
Vertffs RaqUem. 245 Pfrpal 
Motets. 730 Drama Now: An 
Inspector Cdfed Horea. Petar 
Redgonli mytiulogtefl 
torflar. 845 Music to Our Time. 
F atnayhough. 1030 Choir 
Worts. Bruch. 1230 Ckxso. 


BBC RADIO 4 
200 News. 

210 Pnfoda 

230 Mornfag Hu BratatL 

730 News. 

7.10 Sunday Papon. 


7.16 On Your Farm. 

740 Sunday. 

250 The WealTs Good Cause- 
210 Sunday Papers, 

218 Latter from America. 

030' Morning Service. 

1218 Tha Aitttara Ommbus. 
11.18 Madbanwave. 

1148 Eating Oul New aeries. 
12.15 Desert blend Dtece. 

130 Tha World Thki Weekend. 
230 Gardenara' Queatioi Dm 
230 Ctassk: Serial: Lost 

830 Pick of toe weak. 

416 The Man Who Made the 
Proms. 

830 Framing the Land. 

630 Poetry Pleese. with guest 
Ian McMfflan. 

630 Six CrOoek Naum. 

215 Feedback. 

630 CMdmTs Radte 4: The 
Hone and Kfe Boy. By CS 
Lawta. 

730 Sunttsti Strategy. 
TJDOpktton. 

200 (FM) The Rape of 
MMeteuraps. 

200 (LW) Open Unhcratty. 830 
to Other Words: CNkfs Ptw. 
230 Great P toneer c of 
Education: Kurt Kahn. 930 
Modem Art Eduardo Paolozzi 
and Tarry Atidnaon interviewed. 
220 Victorian Reflgtere Daft 
and #>• Ota GoepeL 940 
MrthK ne to ttene . 

830 (FM) Your Race or Mrs? 
930 (FM) The Natural Hterory 
Programme. With KaMn Boot 


S30 (FM) Flashpoint. 

1030 News 
1215 ScJrvtvofo. 

1046 Good Lookers New 
series 

11.16 Dr Burney's Travels 
1145 Seocfe of Fatih. 

1230 News 

1230 Shipping Forecast. 

1243 (LW) As Worid Servica 
1243 (FM) Cloaa 


BBC RADIO 5 LIVE 

B3S Hot Piasufts 
230 Tha Dwnkftwi Programme. 
930 Alastair Stewart's Sunday. 
1230 Midday Edfttan. 

12.15 The Big Byte. 

134 Sunday Sport. 

7X0 Nawa Extra 
738 The Add ToeL 
830 Tha UUmotB PrevteMT. 
10X5 Spedd Aasdament 
WLSS Crime Draft 
1130 Nlghr Extra 
1235 Mghtcal. 

230 Up Mi MghL 


WORLD SERVICE 
BBC for Europe can be 
rocafirad In weatarn Europe 
on medium ware 648 kHZ 
(463m) ta these times BSft 
630 News and features In 
German. 220 Composer of toe 
Month. 730 Worid and Bftttdi 
News. 7.15 Letter from 
Americs 7X0 Jazz For The 
Asttng. 200 world Naurs 215 
March oi the Women, 9X0 


From Our Own C o rrespondent. 
250 Write On. 9X0 Worid 
News. 939 Words of Faith. 
218 The Greenfield CWectton. 
10X0 World Nawa and 
Business Rote*. 1215 Short 
story. 10X0 Fo* Routes 1048 
Sports Round-fa). 11X0 Nows 
Summary; Science In Action. 
11X0 BBC English. 1148 
News and Press Review In 
German. 12.00 Nswsdeak. 
12X0 Play of the Week. 230 
Newahour. 3. DO News 
Summary; Daughters of 
Abraium. 3X0 Anything Goes. 
400 World News. 415 BBC 
English. 4X0 News end 
features In German. ADO Worid 
and British News. 5.15 B8G 
English. 200 World News and 
Bustessa Review. 216 Health 
Matters. 8X0 Newe end 
features In German. 8X0 
Sounds of South Africa 030 
Europe Today. 930 Worid 
News. 209 Words of Faith. 
215 Btoaa World. 9X0 Brain of 
Britain. M30 Newahour. 11X0 
Worid News and Business 
Review. 11.15 Short Story. 
11X0 Letter from America. 
1145 Sports Raund-up- isuio 
Newadeek. 12X0 Daugfitaria of 
Abraham. 1.00 Worid and 
British Maws. 1.15 Mind 
Mottere. 1X0 In Prate of God. 
2X0 News Summary; 
Madams; Truth or Dare? 245 
March of ihe Women. 3X0 
Nawsdesk. 230 Conaroser of 
the Month. 400 Nawsdesk. 
4X0 BBC English. 4.46 
Fruhmagazin. 


WEEKEND FT XXI 

CHESS 


Britain's two contenders for 
the PCA world championship 
start their semi-finals on 
Wednesday, when Nigel Short 
meets the top American Gata 
Kamsky while Michael Adams 
plays the world no 3 Vishy 
AnancL The 10-game matches 
at Linares in Spain eventually 
lead to a title challenge to 
Garry Kasparov in ISS5. 

An all-British final looks the 
least likely outcome. Short, 
still feeling the effects of his 
1933 defeat by Kasparov, has 
been in subdued form this 
year, while Kamsky is blossom- 
ing at age 20 and is the only 
player still in contention for 
both the PCA and Fide ver- 
sions of the world title. But 
Short’s best results have been 
in matches, Linares was the 
venue for his victory over Ana- 
toly Karpov. His experience 
will count if he can overcome 
his habit of early losses. 

Adams has never beaten 
Anand in classical slow chess, 
and the England No 2 lost to 
the Indian two weeks ago at 
the Intel Grand Prix. Anand 
prepares well, plays quickly 
and is the favourite to chal- 
lenge Kasparov. Adams says: 
"On his record he is stronger 
than me, but sometimes he 
feels the pressure in high level 
contests, and that would give 
me a chance.’ 1 

My forecast? Anand by 


5Vr8'/x and Kamsky by 5Vi-}Vi, 
but I would be delighted to be 
proved wrong. 

An English win at this 
week's world junior champion- 
ship in Brazil (D Kmaaran, 
White; V Georgiev, Black); 

1 d4 d5 2 C-l C6 3 NI3 Nffi 4 
NcS e6 5 Bg5 dxc4 6 e4 b5 7 e5 
h6 8 Bh4 gS 9 exffi gxh4 10 Ne5 
QxfB ll a4 Bb7 12 Be2 Bg7 13 
BfS Qe7 14 axb5 c5 15 dxcS Bxe5 
16 c6 Bxc6 1? bxrt Bc7 IS Qd4 
Rg8 19 0-0 a5 20 Nd5! exd5 21 
Rfel NxcG 22 Qxd5 Ne5 23 
Qxa8+ Qd8 24 Rxa5 Resigns. 

No 1039 



White mates in three moves, 
against any defence! by Sam 
Loyd, 1S55). The black king is 
trapped, but the obvious tries 1 
Nh2 BfS and 1 Nefi Rg8 fail so 
you need a surprise. 

Solution Page XIII 

Leonard Barden 


BRIDGE 


Today's hand comes from 
teams-of-four. Here is Attack 
Where it Hurts; 

N 

A Q 10 8 
f J7 

♦ 952 

$ A K Q 10 7 
W E 

4 K 4 4 7 6 5 3 2 

V K2 V 654 

♦ AKQ106 ♦ J 8 3 

#9643 $85 

S 

4 A J 9 
f AQ1D983 

♦ 74 
4 J 2 

With both sides vulnerable. 
South dealt and bid (me heart 
West over-caBed with two dia- 
monds and North said three 
clubs. The opener re-bid three 
hearts and North raised to 
four, ending the auction. 

West opened with the ace of 
diamonds, on which East 
dropped the three, and contin- 
ued with king and queen. 
Declarer ruffed the third dia- 
mond and continued wisely 
with ace and another heart. 


West took his king but there 
was no further trick for the 
defence. None of the players 
wtiii anything. 

Did you spot the defensive 
error? It was West's third dia- 
mond lead. He knew that bis 
partner had three diamonds 
and should have known that 
forcing the declarer was not 
going to defeat the contract 
West must make a trick with 

hiS heart king a nri B if he ran 

score his spade king as well, be 
will defeat the contract 

Can this be achieved? Yes, 
by cutting off the declarer from 
dummy's club suit. At trick 
three, West should play a dub 
and, when he gets in with the 
heart king, he must lead 
another dub. Now, if dedarer 
has no further dub and East 
still has a trump. South goes 
down. 

This particular form of 
attack on the declarer's lines of 
communication seems a blind 
spot with many reasonably 
good players. 

E.P.C. Cotter 


CROSSWORD 


No. 8,561 Set by DENMUTZ 

A prize of a classic Pettkan Souverfin 800 fountain pen. Inscribed with the 
winner's name for the first correct solution opened and five runner-up 
prizes of £35 Pp-Iikan vouchers. Solutions by Wednesday September 28. 
marfcpri Crossword 8j561 on the envelope, to the Financial Times, Number 
One Southwartc Bridge, london SE1 9HL. Solution on Saturday October L 


1 

4 

9 

10 

12 

13 

15 

16 

19 

20 


25 

27 


29 

30 



ACROSS 

Drink in sailor's world? (6) 

Can one not give a promise 
with it? (4,4) 

Vessel in hearty fight (6) 

Cross through lines (6) 
Delivery breakdowns? (8) 
Health guarantee (6) 
Stretched when instructed, 
say? (4) 

Sedate sort of boss desire 
change? ( 10 ) 

Many Uke to marry, to make 
a knot (5-5) 

Doctor into specific gravity of 
air pollution (4) 

Former partner takes on new 
temp, free! (6) 

Chelsea, for example, Id 
ordeal of judicial examination 
(8) 

How Americans coerce a 
transport system? (8) 

Sleeting to restore the spirits? 

(8) 

Backwoods not popular, 
treacherous? (8) 

Scattered news, perhaps, 
around Turkey (6) 

Solution 8J560 


DOWN 

1 What about pictures going 
from one side to another? (7) 

2 One's stout mired and 
smoothly sustained In bars 

<9) 

3 Engineers' burden can be 
trouble again (6) 

5 Frank, a writer, joins circle 
14) 

6 Fielding, possibly, in vest? Lo! 
the disorder! (8) 

7 Oread. In the wild, equipped 
with propellers? (5) 

8 Dredges river enclosures (7) 

11 Bloomer and a big one, it 

turns out (7) 

14 Planet hard to pick up? (7) 

17 For mastery or canoe, mind 
turbulence! (9) 

18 DO in a battery? (3-5) 

19 Applaud satellite for so long 
<7> 

21 Old vessel grand, perfect 

one at sea (7) 

22 Body end in view? (6) 

24 Order of the dictionary (5) 

28 High water for Jack Point? (4) 

Solution 8,549 


□□□□□DB|B[D0ns0mnaBB bbb 

□B3QDDHID BQdQHBB 
□□□□QDO0 HQCjEHISB 



□□□mail HHnHnnBOMEjnaaa 

a 

□Basso □□□aaDEGMaaa 0noiaB0naQBQ 


WINNERS 8,549: W. Belton, London; D. Alden, Hunmanhy, & Yorks; 
R.C. Ardron, Watlwm-Deame. Rotherham; R. Hunt, Rainford, St Hel- 
ens; Mrs M. Lewis. Colwinston, S Glamorgan; E.D. Lucas. Pewsey, 
Wiltshire. 



N 

N 





X 




FINANCIAL TIMES WEEKEND SEPTEMBER T 7/SEPTEMBER IS 1994 



Alexander Downer 
is about to lose his 
job. No, I bad not 
heard or him either, 
bat apparently 
Downer, 42, Is Die 
leader of Austra- 
lia's opposition Lib- 
eral Party. Downer 
has held down this 
job for only four months, so one 
might be forgiven for wondering 
what this Tony Blair of the antipo- 
des had done to deserve such treat- 
ment Hie answer is: he has made 
one joke too many, in public. 

According to the Daily Telegraph 
“he has made a series of gaffes 
since becoming leader, affronting 
women's and dvfl rights groups, 
Aborigines and homosexuals . . . 

“The most damaging incident 
occurred last week when he out- 
lined to guests at a fund-raising 
dinner his Liberal party’s new pot- 


The last laugh for the honest joker 

Dominic Lawson says politicians are so afraid of offending that they no longer dare tell the truth 


icy document called “The Things 
That Matter*. Attempting same 
light-hearted banter, he caused out- 
rage by describing the party's pol- 
icy on domestic violence as the 
things that batter'." 

Not the best joke I have ever 
heard, bat is it such an esxroctat- 
ing pan that the oian responsible 
should be sacked? Alas, the outrage 
was not at the quality of Downer’s 
sense of humour, but at the fact 
that he was prepared to laugh at 
the over-seriousness of his own 
party workers, with their porten- 
tous pamphlets called “The Things 
That Matter". It is a gloomy day 


when a political leader of a right of 
centre party, in robust Australia, of 
all places, Is deemed unelectable 
because he is prepared to mock 
sncfa ghastly totems of political cor- 
rectness as “women’s and civil 
rights groups. Aborigines and 
homosexuals". 


I n the mother country last 
week our own Jeremy Hanley, 
having scarcely had time to 
register that he had become 
Conservative Party chairman, was 
being declared unfit for his office 
because he good-humouredly 
described some violent yobs as 


“exuberant”. Like his contempo- 
rary, Downer, Hanley’s unforgiva- 
ble crime was levity. 

. We are in an age when a sense of 
humour has been designated the 
eighth deadly sin, at least as far as 
politicians are concerned. There 
can be no doubt that Norman Laro- 
onfs announcement, two years ago 
this week, that he was singing in 
his bath on the morning after ster- 
ling’s forced exit from the 
exchange rate mechanism, was 
responsible for most of the abuse 
which the ex-chancellor subse- 
quently received. 

The paradoxical truth is that in 


private, politicians tend to have an 
acerbic, often tasteless, and some- 
times genuinely very fanny sense 
of humoar. Thar cynical and mor- 
dant wit makes them good com- 
pany. And yet they axe forced to 
neuter themselves In public, all for 
fear of offending one or another of 
tiie growing band of one-issue pres- 
sure groups. 

Blunt telling of home troths is 
similarly unpalatable, and most be 
recanted at all costs. Michael Por- 
tillo tells some university students 
that they are living in the least 
corrupt country in Europe, and, is 
immediately forced to apologise. 


William Waldegrave reveals to a 

House of Commons select commit- 
tee that governments sometimes 
lie, and is henceforth considered 
unsuitable for promotion. 

As one politician wryly told me, 
in modern public discourse "gaffe" 
is tiie word used by journalists to 
describe a politician telling the 
truth. 


I am afraid that journalists 
must take a large measure of 
blame for this. They are as 
cynical a breed as the politi- 
cians they write about, bu t all too 
often they adopt a tone of outraged 


surprise when a government minis- 
ter blurts out In public the truth 
which he will have told the same 
journalists eountless times in unat- 
tributable briefings. It is as if they 
regard the public as children, unfit 
to be exposed to the murky realism 
which characterises the private dls- 
course of those who write about 
politics for a living. Yet the 
extraordinary public success and 
acclaim for Alan Clark’s diaries is 
dear evidence that the public is 
capable of appreciating political 
dialogue stripped bare of euphe- 
mism and mock-seriousness. 

Claris, yon will observe , left 
political life with neither a peerage 
nor a knighthood. But at least he 
had fan- As 1 have bad. over the 
past 3'A years, in writing this cot 
umn. Good bye. and thank you for 
reading to the end. 

■ Dominic Lawson is editor of The 
Spectator. 


Private View /Christian Tyler 


The general who picked up a briefcase 


L ike so many successful 
career soldiers, Fidel 
Ramos Is a ftrenll man. 
He was sitting behind 
an enormous desk in 
the Hotel de Crillon in Paris this 
week gently mashing an unlit cigar. 
“Can I offer you a cigar?” he said. 
Thank you - I’ve given them up. 
“1 have too. But I have to promote 
our best export product, you see, 
and this is one way of eliciting 
interest, - He smiled benignly. 

When the head of a turbulent 
country like the Philippines feels 
secure enough to take an extended 
business tour of Europe, things 
have surely changed. 

Ramos is a large part of the rea- 
son for that change. A former enfor- 
cer for Ferdinand Marcos, his sec- 
ond cousin, he led the “people's 
power" revolution against the Mar- 
cos dictatorship in 1986 and 
quashed seven attempted coups to 
protect successor Cory Aquino 
before running for the presidency 
himselL 

For the last nine days Ramos has 
been travelling with a large retinue 
between Rome, Madrid. Paris. Brus- 
sels and Frankfurt to confirm his 
democratic credentials and trumpet 
his country's newly-acquired stabil- 
ity and economic growth. 

Long famous for its poverty, civil 
turmoil, crony capitalism, foreign 
indebtedness, tax evasion and 
bureaucratic corruption, the Philip- 
pines is now being hailed as the 
latest addition to Asia's economic 
tigers. 

Ramos himself is credited with 
pacifying or neutralising the Com- 
munist Moslem and far-right mili- 
tary rebels. He even claims to have 
pacified the Catholic Church to 
which 85 per cent of the 66m Filipi- 
nos belong. Church leaders - 
including the outspoken Cardinal 
Jaime Sin - attacked his govern- 
ment's birth control programme as 
an invitation to vice and sexual per- 
version. 

A Methodist who keeps a statue 
of the Madonna in his office, Ramos 
on this tour enjoyed a private audi- 
ence with the Pope. They met as the 
Vatican was fighting its corner at 
the UN conference on population 
control in Cairo, so I asked Ramos if 
they had discussed family planning 
and artificial contraception. 

"To tell you frankly, the Holy 
Father and I have been exchanging 
letters since early May. I painted 
out in my letters that in the Philip- 
pines the family is considered as 
the basic social unit, the very key to 
the survival of the nation.” 

There was no disagreement on 
principles, he added. “The freedom 
of conscience, we say in govern- 
ment. is the basic freedom which 
we protect. It's up to married cou- 
ples to determine what kind of life 
they would like to have for them- 
selves and for their children.” 

Is the church too powerful? 

“it's a matter of opinion, 1 guess. 
But if you look at the recent elec- 


tions, the Catholic Church, as far as 
I can see, did not try and impose its 
collective authority in favour of any 
candidate or set of candidates.” 

What are your relations with Car- 
dinal Sin like? 

“Very good. I kid him all the time 
because for the last seven or eight 
years 1 have been attending his 
birthday parties, on his invitation. 
We both belong to the class of 1929 
- we were bom the same year.” 


Ramos's former Jobs as head of 
the feared paramilitary police and 
national police under Marcos seem 
to have been forgiven him as he 
pursues economic success under 
democratic rale, a rare combination 
for Asia. 

You grew up in an authoritarian 
regime, I said. How can you satisfy 
people that you will not one day 
want to seek more power to drive 
your programme through? 


“1 think you must understand 
that being in the military as a 
career does not make you a dicta- 
tor, per x,” he said. “We couldn’t 
stand the dictatorship. That's why 
we got together with the people and 
Mrs Aquino and many other mili- 
tary professionals to throw out the 
dictator. The record is there and 
can speak for itself. 

“So what are we guaranteeing to 
the western investor? A govern- 



Cnta*ifta De*n 


A song for yobs and nobs 


Peter Aspden on why ‘ Land of Hope and Glory’ makes him uneasy 


L istening to “ Land of Hope 
and Glory” always makes 
me fidget in my seat, not 
least because of the with- 
ering looks all around me which 
suggest I should be standing. It is 
not a sign of disrespect, more a 

sense of unease over the sentiments 
being unleashed, and their appro- 
priateness to the occasion. 

The two versions I heard 
recently, both celebrating very 
diverse aspects of nationhood, were 
rousing testaments to the real joy 
many people experience singing 
this powerful anthem; but I could 
not help wondering if the two 
groups were actually divided by a 
common cal! to exaltation. 

The first was at Wembley Sta- 
dium last week where, as has been 
the practice for a few years now, 
Elgar's march was blasted out by 
the orchestra as the two teams 
came on to the pitch. 

The unashamed point of the exer- 
cise is to provoke the crowd into 
vociferous vocal support for the 
home team, to intimidate the oppo- 
sition, to swell the roar of those 
three lions on the shirts of what 
sometimes look like some very 
young, skinny lads. 

Nothing wrong here at all; sport 
is regarded as a legitimate and 
secure arena for such feelings. It 
thrives on adrenalin, theatricality 
and violence of passion. And last 


week's opponents, the United 
States, after their Improbably pros- 
perous summer, are not unfamiliar 
with intensity of feeling and big- 
crowd psychology. 

The reservations surface a few 
moments later, when, as always 
happens, the opposition's national 
an them is played. Not that anyone 
can hear it very clearly; for the 
crowd, now surging into a higher 


unduly poisoned my judgment. In 
feet, the Royal Albert Hall, awash 
with flags of many nations, seemed 
a genuinely joyful place to be. 

My anxieties were allayed com- 
pletely when Bl-yn Terfel stepped 
np to lead “Role Britannia”, burst- 
ing with Welsh pride (no need to do 
any swelling here) but tempering 
the proceedings with a tightly 
clutched rugby ball and flag stick- 


7 / is a witless display . staining any dignity 
which the preceding minutes had acquired. ' 


plane of fervour, drowns it out, by 
boos, whistles, curses and simple 
abuse. 

It is an ugly, witless display, 
embarrassing to share (one can 
never wholly detach oneself from a 
crowd) and ineluctably staining 
any dignity which the preceding 
minutes had acquired. 

It was with some trepidation, 
then, that f watched the climax of 
the Last Night of the Prams a few 
days lata*. Not only another “Land 
of Hope and Glory", hot a “Rule 
Britannia” and “Jerusalem” to fol- 
low: a triple shot of patriotic Inst 
just in case we missed the point 

It made me feel uncomfortable, I 
admit but maybe Wembley bad 


mg out of his back. 

Here was patriotism all right hot 
placed firmly in inverted commas, 
a bit of a laugh, perfectly pitched 
for an audience which above all 
was looking for a good time. 

Here, after all, is bow the British 
should handle nationalism, with 
lashings of irony, glancing back- 
wards hut rooted firmly in our 
present I ess-than -auspicious cir- 
cumstances. 

Tolerance, wit and self-efface- 
ment are not virtues to be under- 
estimated; this surely is the perfect 
way to celebrate than. 

And yet, I continue to feel 
uneasy, is it not too complacent to 
distinguish so easily between the 


vulgar inanities of a yob culture 
and the cleverly modulated coot 
ness of a nob culture? They are, it 
should be remembered, singing the 
same song. 

On a freezing mid-winter night 
some years ago, England enter- 
tained Cameroon for another 
friendly match. 

It was a few weeks Into the Gulf 
War. and feelings, notwithstanding 
tfae bitter cold, were running 
higher than us ual 

As the Cameroon stars of the 
1990 World Cup lined up, a clutch 
of Arsenal fans in front of me 
struck up a half-hearted chant 
which soon evaporated into the 
bleak night: “Saddam is a yufafo, 
Saddam is a ylddo . . .” 

The perplexing irrelevance of tiie 
chant - one needs a crash course in 
North London demographics to 
understand it - is almost funny, 
were it not for (he fact that tins 
pithy slice of “terrace hnmoor” 
managed, with one bilious brushs- 
troke, to offend at least three reli- 
gions, two continents and a dutch 
of squirming liberal-pacifists who 
just wanted to enjoy the match. 

The British are fortunate enough 
not to he at war at present; but one 
ought to be more careful titan ever 
with hope and glory. Neither (me is 
In plentiful supply right now, and 
the crassness of the acts committed 
in their name belongs to all of os. 


ment that is very stable, demo- 
cratic. predictable, transparent, con- 
tinuous." 

They call you “Steady Eddie”, I 
said. Some would say you are going 
too slowly, too cautiously. 

“You have to judge (he perfor- 
mance by the result What is impor- 
tant for me is to start properly. 
There are some critics who think I 
should be charg in g ail over the 
{dace on a white horse, which is the 
maiai dramatics of Philippine poli- 
tics. But I am different 

“We have seen how Philippine 
politics in the traditional pattern 
have felled. They have not provided 
for the livelihood of the people. It 
was basically an oligarchy and 
there was a mistaken idea that 
there must be drama, charisma, fire 
and a lot of special effects taking 
place, fo rgetting that you must first 
put in the fundamentals. And thin is 
what I have done.” He cited the end 
of power cuts as an example. 

Ramos has never been accused of 
flamboyance. But on his birthday 
he used to enjoy parachuting into 
the party - one year he descended 
with, a crate of beer, another with a 
live goat for the barbecue. 

If you are calm and steady, I said, 
is that due to your militar y train- 
ing, your Methodist upbringing? - . 

“No, it's because of me. All of 
those things impacted on the mak- 
ing of me. But I would give credit to 
discipline, specially self-discipline. 
Yon don't have to go to military 
school to learn that. But going 
through an institution like West 
Point helps.” (He wan a place at the 
tough US military academy against 
400 of his countrymen.) 

“I have also seen the best and the 
worst in Philippine society, pre- 
cisely because t his was the nature 
of my military career. As a military 
man, very early on, I saw that pov- 
erty, injustice in the Philippines 
was not to be solved by military 
means but by the removal of the 
root causes.” 

Ramos, born in Pangaranan in the 
north of the country, describes his 
background as middle-class but not 
wealthy. His father was a reporter 
who became a congressman, ambas- 
sador and foreign secretary. His 
mnUmr was a public school teacher 
“very charming, a very effective 
campaigner who was loved by ordi- 
nary people because she knew how 


to relate to them”. A younger sister, 
Letty, went into politics before him 
and is the country’s second-ranking 
senator. 

The president and his wife Ame- 
lita “Ming” Martinez have five 
daug hters, one of whom, on holiday 
from Hong Kong, was sitting among 
the officials in the room as he 
spoke. 

I forebore, therefore, to ask 
Ramos about the allegation in a 
Manila newspaper last year - not 
apparently so far denied - that 
tehinri him is a powerful mistress. 
When I asked a senior aide about it 
afterwards he smiled ambiguously 
and said; “Maybe it was a long time 
ago." 

The soldier-p resident, sometimes 
likened to Genkal Eisenhower, says 
he has all his life been affected by 


'j Being in the 
military as a 
career does not 
make you a 
dictator, per se 


the devastation of war - first as a 
boy during the second world war, 
then as a combat soldier in the Kor- 
ean War, later as a fighter of bis 
own country's insurgents. 

In Vietnam, he headed a non-com- 
batant unit sent in to repair roads 
and bridges and distribute medical 
relief. Civic action, a military form 
of community help, bad been an 
important theme of his life, he said, 
and his overall responsibility as a 
former deputy chief of staff Later, 
under Cory Aquino, he was put in 
charge of relief operations for the 
huge earthquake of 1990. 

When did you start having presi- 
dential ambitions? 

“After seeing that the economic 
empowerment of the people bad not 
yet been put In place towards the 
end of President Aquino’s term, I 
decided to go for it 

“By that time I had helped Mrs 
Aquino overcome seven coup 
attempts against her government 
and I felt the economic setbacks 
resulting from t he s e upheavals, and 


then the terrible natural disasters 
(the earthquake, followed by the 
eruption of Mt Pinatubo and a suc- 
cession of typhoons) convinced me 
that someone who knew how to do 
it must take over. 

“Another factor you might say 
that convinced me to go for it was 
the clamour of people that were 
with me during the people power 
revolution who did not see much 
improvement over the years that 
followed. They said I must finish 
the unfinished revolution.” 

In getting to the top were you 
lucky or clever? 

“It’s not because of religion, or 
schooling,” he repeated. “I am say- 
ing it’s because of me. That's the 
way I was made.” 

When I asked him what he read 
he mentioned Alvin Toffler, Paul 
Kennedy, and John Nalsbitt of 
“Megatrends” fame. 

“1 do read a lot and I write a lot, 
in the sense of writing my own stuff 
- speeches for Instance. I'm happy 
to give you some samples later on." 
He held up some notes. 

My time was up, but President 
Ramos allowed one more question. 
So I mentioned the thousands of 
Filipino women who do menial 
work in Europe and the Middle 
East, often to support children they 
have left behind, and often 
exploited in the process. 

Are their remittances a welcome 
feature of the economy, I asked, or 
is their presence an embarrassment 
to you? 

“No, we are just practical about 
this. The jobs are here but we are 
generating jobs now in the Philip- 
pines so that we can keep many of 
our nationals at home. But this will 
take time." Ramos pointed to the 
doubling, to more than 5 per cent, 
of GNP growth in the first half of 
this year. “We are optimistic that 
. the creation of jobs will happen." 

I got up to leave and the presi- 
dent. who had been busily writing 
in a book, handed the volume to me 
across the wide desk. "You might 
find this interesting, too,” he said. It 
was a colour magazine with a pic- 
ture of a man scuba diving among 
wrecks. 

When I got outside among the 
throng of protocol and security 
men, the smiling attache pointed to 
the caption. The scuba diver was 
unflamboyant Steady Eddie himself. 


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